AGENDA MEMORANDUM

 

 

Meeting Date: May 8, 2006

 

From: Edward F. Smyth, Jr., Assistant City Manager

 

Subject: Resolution authorizing an amendment to the Lease Agreement with Import Sales of Lake County, LLC, d/b/a Bill Bryan KIA

 

 

Staff Recommendation:

Staff recommends approval of the lease amendment with Import Sales of Lake County, LLC, d/b/a/ Bill Bryan KIA.

 

Analysis:

Import Sales of Lake County, LLC, d/b/a Bill Bryan KIA is currently leasing property at the airport. As a part of their franchise agreement, they are required to make substantial improvements to this dealership. The company is proposing to invest approximately $2,000,000 in improvements to the facilities and grounds at this location as a part of this agreement.

 

City staff has been negotiating with the dealership for a suitable extension of this lease that will provide the business with sufficient assurances for them to acquire favorable financing and to ensure continuous operations of a compatible business as others within this corridor.

 

This lease will be as follows:

 

      20 year term with one 5 year renewal option

      Rent will begin at the current amount ($11,800.94 028.92028.92/mo.) plus all applicable taxes.

Note to be removed, need to discuss contract amounts with Ed.

 

 

 

        On March 1 each year the rent will increase by the percent of increase of the Consumer Price Index (CPI) IP (same as current lease)

        During the first 54 months of the new lease term there will be a build-out allowance of 50% of the monthly rental rate, after calculation of the CPI IP escalator.

        Beginning with month #55 of this lease, rent payment shall be 100% of the then current amount, which includes the CPIIP escalator

 

      All other terms and conditions will remain as in the current lease agreement.

 

The Airport Advisory Board has endorsed this lease.Staff recommends approval and has the endorsement by the Airport Advisory Board.

 

Options:

1. Approve the Lease Amendment; or

2. Such alternative action as the Commission may deem appropriate

 

Fiscal Impact:

The gross amount of the lease for the first period that will end February 28, 2007 is $11,028.92 028.92800.94 per month. The net amount of rent after the build-out allowance is $5,514.46900.47 514.46. The CPI IP inflator will be applied as of Mayrch 1st of each year and the discount applied to that gross amount through the first 54 months of the lease term. Beginning on the first day of the 55th month, the Lessee will make monthly payments equal to the gross amount plus taxes for the balance of the lease term.

 

Submission Date and Time: 4/14/2006 10:03 AM____

Department: __________

Prepared by: ________

Attachments: Yes___ No ______

Advertised: ____Not Required _____

Dates: __________________________

Attorney Review : Yes___ No ____

_________________________________

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance Dept. __________________

Deputy C.M. ___________________

Submitted by:

City Manager ________RS___________

 

Account No. __________________

 

Project No. ___________________

 

WF No. ______________________

 

Budget ______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AMENDMENT TO THE LEASE AGREEMENT WITH IMPORT SALES OF LAKE COUNTY, LLC, D/B/A BILL BRYAN KIA; 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 an amendment to the lease agreement with Import Sales of Lake County, LLC, d/b/a Bill Bryan KIA, whose address if 8644 South Highway 441, Leesburg Regional Airport, Leesburg, Florida 34788 to extend the term of the agreement and provide an incentive to the lessee.

 

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 __8th24th___ day of __MayApril_______ 2006

 

 

 

__________________________

Mayor

 

ATTEST:

 

 

__________________________

City Clerk