AGENDA MEMORANDUM

 

 

Meeting Date:           March 14, 2011

 

From:                          Charlie Weller, Airport Manager

 

Subject:                      Resolution authorizing execution of a First Amendment to Lease agreement with All Terrain Lawn & Tractor, Inc. for property at Leesburg International Airport

 

 

Staff Recommendation:

Staff recommends approval of the First Amendment to Lease agreement with All Terrain Lawn & Tractor, Inc.

 

Analysis:

All Terrain Lawn and Tractor, Inc. currently leases the site located at 8735 US Hwy 441 at Leesburg International Airport.  The lease agreement was approved by the City Commission November 9, 2009.  The agreement includes the provision that the tenant is responsible for payment of property taxes.  The amount of property taxes currently due is $11,672.24.

 

The owner of All Terrain Lawn & Tractor is unable to pay the entire tax bill at one time and has requested to pay the taxes in four increments.  The attached First Amendment to Lease allows the taxes to be paid in equal quarterly installments.  For the current year, each payment will be $2,918.06 (25% of the real property taxes due for 2010).  During 2011, quarterly installments for taxes attributable to tax year 2010 shall be paid as follows:  the first installment is due immediately upon approval of this agreement, with subsequent installments payable on May 15, 2011, August 15, 2011 and November 15, 2011.  All Terrain Lawn and Tractor, Inc. will owe two payments on the November 15, 2011 installment, the final quarterly tax payment for 2010 and the first quarterly tax payment for 2011 (25% of the real property taxes due for 2011).

 

In addition to the tax payment schedule, the Lease Amendment also adds a provision that the City, as Lessor, has the right to terminate the lease by giving the Lessee sixty days written notice.  At the end of the sixty day notice, the Lessee will vacate the building and remove all personal property.  This improves the City’s ability to respond to potential aviation-related economic development opportunities.

 

All other terms of the original lease agreement remain in effect. 

 

Options:

1.  Approve the First Amendment to Lease agreement with All Terrain Lawn & Tractor, Inc.; or

2.  Such alternative action as the Commission may deem appropriate

 


Fiscal Impact

Approval of the First Amendment to Lease agreement with All Terrain Lawn & Tractor, Inc will have no fiscal impact on the City unless the tenant defaults on the amended four tax increment payments.  The City is responsible for the taxes and has paid the taxes but did not budget for this expense as it was to be reimbursed by the tenant.  Monies will be temporarily funded from the General Fund and reimbursed quarterly.

 

 

Submission Date and Time:    3/9/2011 5:42 PM____

 

Department: ___Airport______________

Prepared by:  ___Charlie Weller________                     

Attachments:        Yes _X___   No _____

Advertised:   ____Not Required __X___                     

Dates:   __________________________                      

Attorney Review :     Yes _X__  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. ____JB____________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. __001-1821-542-49-00__

 

Project No. ___________________

 

WF No. ______________________

 

Budget  _______$51,250.00_______

 

Available ____  _$  6,211.70_______


 

RESOLUTION NO._______________

 

RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF LEESBURG AND ALL TERRAIN LAWN & TRACTOR, INC., A FLORIDA CORPORATION, FOR PROPERTY AT LEESBURG INTERNATIONAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute a First Amendment to Lease agreement with All Terrain Lawn & Tractors, Inc., a Florida Corporation, whose address is 8735 US Highway 441 South, Leesburg, Florida 34788 for property at Leesburg International Airport.

 

            THAT All Terrain Lawn and Tractor, Inc. will make payment for the current year, in quarterly amounts of $2,918.06 (25% of the real property taxes due for 2010).  During 2011, quarterly installments for taxes attributable to tax year 2010 shall be paid as follows:  the first amendment is due immediately upon approval of this agreement, with subsequent installments payable on May 15, 2011, August 15, 2011 and November 15, 2011.  All Terrain Lawn and Tractor, Inc. will owe two payments on the November 15, 2011 installment, the final quarterly tax payment for 2010 and the first quarterly tax payment for 2011 (25% of the real property taxes due for 2011).

 

            THAT quarterly payment arrangements will remain in effect on said dates of each subsequent year until the Lease Agreement is amended or terminated at which time any amounts due the City shall be paid in full. 

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 14th day of March 2011.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk