AGENDA MEMORANDUM

Meeting Date:           July 24, 2006

From:                          Charlie Weller, Airport Manager

Subject:                      Resolution adopting a Ground Lease Agreement with Jenkins Hyundai of Leesburg

Staff Recommendation:

City Staff recommends approval of the attached Ground Lease Agreement with Jenkins Hyundai of Leesburg.

Analysis:

DRJ Property Holdings, LLC d/b/a Jenkins Hyundai of Leesburg, wishes to lease the city owned parcel west of the Pringle Design Center to store vehicles while their new facility is being built north of the airport fronting U.S. Hwy 441.  This land is part of airport property and consists of 135,351.52 square feet.  The length of the lease is approximately six months at a lease rate of $1,353.52 ($0.12/sq. foot) per month plus taxes.  The lease includes an option to extend the term on a month-to-month basis if necessary.

Jenkins will be required to maintain $1,000,000.00 liability insurance with the City named as an insured party.  Jenkins generally will not be allowed to sell cars from this location and must keep the grass mowed in an acceptable manner.   However, specific event sales, such as a tent sale may be permitted from time-to-time on a case-by-case basis. Jenkins will also be responsible to return the property to the City in good condition at the end of the lease period.

Options:

1.   Approve the Ground Lease Agreement with DRJ Property Holdings, LLC d/b/a Jenkins Hyundai of Leesburg; or,

2.   Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

This lease agreement will generate $8,121.12 over the six-month contract period for the airport.

Submission Date and Time:    7/21/2006 4:26 PM7/19/2006 3:05 PM7/19/2006 2:53 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. __________________                                    Deputy C.M. ___________________                                          Submitted by: City Manager _________RS__________

Account No. __001-0000-362-0110 Project No. ____N/A__________ WF No. _______N/A__________ Budget  _______N/A __________ Available ______N/A__________

RESOLUTION NO._______________

A RESOLUTION OF THE CITY OF LEESBURG AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A GROUND LEASE AGREEMENT WITH DRJ PROPERTY HOLDINGS, LLC D/B/A JENKINS HYUNDAI OF LEESBURG FOR PROPERTY AT THE LEESBURG REGIONAL 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 an agreement  with DRJ Property Holdings, LLC d/b/a Jenkins Hyundai of Leesburg, whose address is 2025 SW College Road, Ocala Florida 34474, for property at the Leesburg Regional Airport.

 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 __24th__ day of __July_______ 2006

                                                                            __________________________

                                                                             Mayor

ATTEST:

__________________________

City Clerk