Staff recommends approval of the Second Amendment to the Lease Agreement with All Terrain Lawn & Tractor, Inc.
All Terrain Lawn & Tractor, Inc., (hereinafter “All Terrain”) has been leasing property at 8735 U.S. Highway 441 South since November 2009. In recent months, the company has experienced difficulty staying current in its rent and property tax payments to the City. Previously, the City and All Terrain entered into a lease amendment to establish a payment schedule for reimbursing the City the 2010 property taxes owed by the company which it was unable to pay when the taxes came due. This amendment (First Amendment to the Lease Agreement) was approved by a Resolution of the City Commission adopted March 14, 2011.
The proposed second lease amendment is intended to establish a short-term payment schedule that will allow All Terrain to pay off its delinquent rent of $2,570.00 and remain current on future rent payments to the City. Under the proposed payment schedule, All Terrain will be required to pay additional monies above the normal monthly rent amount for May, June and July 2011 to reduce its delinquency, and then return to its normal monthly rent payment of $1,070.00 beginning August of 2011.
1. Authorize execution of the Second Lease Amendment for All Terrain Lawn & Tractor; or
2. Such alternative action as the Commission may deem appropriate
Adoption of the proposed second lease amendment is intended to assist the City in collecting the entire amount of delinquent rent owed by All Terrain Lawn & Tractor for use of the property at 8735 U.S. Highway 441 South. There will be no fiscal impact on the City of Leesburg unless All Terrain defaults on the rent that the company owes the City.
Prepared by: ______________________
Attachments: Yes____ No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _______JB_________
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-0000-362-0110___
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A SECOND AMENDMENT TO A LEASE AGREEMENT WITH ALL TERRAIN LAWN & TRACTOR, INC., A FLORIDA CORPORATION, FOR PROPERTY LEASED AT LEESBURG INTERNATIONAL AIRPORT; AND PROVIDING AND 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 the attached Second Amendment to a Lease agreement with All Terrain Lawn & Tractor, Inc., a Florida Corporation, whose address is 8735 U.S. HWY 441 South, Leesburg, Florida 34788, for property leased at Leesburg International Airport, with all terms and conditions as described therein.
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 23rd day of May 2011.