Staff recommends approval of the Lease Agreement with DriveTime Car Sales, Inc.
DriveTime Car Sales, Inc., a used auto dealership, is currently located on airport property at 8735 U.S. Highway 441. This parcel was purchased by the City from Michael and Susan Smith in July 2002. Under the terms of the purchase agreement, the Smiths retained the right to the income from the lease with DriveTime until its expiration. The lease agreement between the Smiths and DriveTime expires at midnight on June 30th 2007. Upon expiration of the lease agreement, control of the property, including all future income derived from the lease with DriveTime, is returned to the City.
DriveTime is in the process of acquiring land to build a new facility near the intersection of U.S. 441 and CR 473. As of this date, construction has not started. As a result, DriveTime needs additional time to build a facility and has requested to enter into a lease agreement with the City so they can remain at their current site for several more months.
The City plans to erect T-Hangers in the area that DriveTime now occupies, but that project will not start for a year or more. Approving the Smith’s request for the additional lease time to allow them to construct their new facility under a realistic schedule is not a problem for the City.
The attached agreement is a month-to-month lease and will yield additional revenue to the City of $8,000.00 per month.
The Airport Advisory Board reviewed this Agreement at their May 16, 2007 meeting and recommended approval.
1. Approve the Lease Agreement
2. Such alternative action as the Commission may deem appropriate
Approval of this lease agreement will generate $8,000.00 per month.
Prepared by: ___Charlie Weller________
Attachments: Yes __X__ No ____
Advertised: ____Not Required __X__
Attorney Review : Yes _X__ No __
Reviewed by: Dept. Head ________
Finance Dept. __________________
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-0000-362-01-10__
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 LEASE AGREEMENT BETWEEN THE CITY OF LEESBURG AND DRIVETIME CAR SALES, INC. 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 Lease Agreement with DriveTime Car Sales, Inc. whose address is 4020 E. Indian School Road, Phoenix, Arizona 85018, for property at Leesburg International 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 _29th____ day of __May_______ 2007