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HomeMy WebLinkAbout10/06/2000HOJ~ OF P~ICA~ lSl~I~ 1225 Main Street [] Sebastian, Florida 32958 Telephone (561) 589-5330 [] Fax {561) 589-5570 City Council Information Letter October 6, 2000 New Lease - Velocity Aircraft Next week's City Council Meeting Agenda includes a recommendation to authorize execution of two agreements, both between the City of Sebastian and Velocity Aircraft (via the corporate name ofA & B Leasing Enterprises, Inc.) to permit an expansion of the company's operation to also encompass the property currently leased by Golden Horn Aviation. During the acquisition process, arrangements were made to renegotiate both leases to permit expansion, as well as the sale of Golden Horn Aviation. The overall beneficial result to Sebastian Municipal Airport was an actual adjustment to the lease fee, initially resulting with an annual increase by approximately $3,485, consistent with the goal of fees consistent with fair market values, and as previously reported, consistent with Federal Aviation Administration guidelines. Like arrangements are therefore appropriate, should the City of Sebastian pursue revised lease agreements with existing tenants (aside from the golf course). Now we have experience with this practice, we can move forward respectively. Restroom Development - Hardee Park/Yacht Club As previously reported, packages were recently assembled to solicit bids for the Yacht Club Restroom Development Program, in which a preliminary site plan was delivered for your review and edification. As Fiscal Year 2001 began this week, arrangements are underway to initiate other improvement programs and projects, including the Hardee Park Restroom. Initial analysis confirms that the same plan for the Yacht Club is applicable for Hardee Park. As such, our recommendation at this time will be to implement both programs via one contract; to take advantage of obvious economy of scale benefits such as full mobilization of equipment to implement both projects concurrently as well as applicable lower costs. Authorization is therefore City Council Information Letter October 6, 2000 Page 2 anticipated in the coming weeks, as the respective solicitation process began this week. Airport Master Plan Update Please find the attached Master Plan Update, a summary of yesterday evening's Airport Master Plan Workshop presentation by the LPA Group, Inc. The booklet essentially serves as a guidebook outlining the overall master planning process, including growth projections, development of physical facilities, guidelines for adjacent land use as well as a description of the logic used in formulating the plan. As reported during yesterday evening's meeting, at least two additional future workshops will be held to help conclude the overall process (please reference the project schedule on page four of the booklet, as we are currently in the capacity assessment/facility requirements phase of the overall exercise). The next public presentation will likely take place circa March 2001. Grant Award - Local Law Enforcement Block Grant Pro,qram Please be advised that the City of Sebastian was awarded a Local Law Enforcement Block Grant (LLEBG) totaling $11,081to help finance necessary police equipment/supplies for Fiscal Year 2001. Actual related expenditures will tie into goals and objectives as outlined in the current year budget, as no additional impacts are imminent as a result of participating in this year's LLEBG program. Simply additional financial resources to assist operations respectively. Final Agreement with Bell South Mobility Please be advised that the City of Sebastian was successful in negotiating an addendum to the previously authorized agreement with Bell South Mobility, whereby the City of Sebastian will realize an additional payment of $25,000, as well as an additional 25% of revenue incurred for future subleases at the communications tower to be developed on City property behind the police station. Because negotiations and the actual agreement were previously authorized by City Council, no additional formal action is required to accept additional revenue that culminates this arrangement. As City Council Information Letter October 6, 2000 Page 3 such, attached is a copy of the amendment to option and lease agreement for your review and further edification. Greens+ Pa~y Our new business partner at Sebastian Municipal Airport, Greens+ will host a party to celebrate numerous personal and professional accomplishments, including the future site of their packaging and distribution facility in Sebastian. This celebration will take place at the newly constructed Deauville Home along the St. Sebastian River Saturday October 21st, 4 p.m. to 10 p.m. whereby numerous officials (and families) from the City of Sebastian, including all of you, are being invited. Invitations are therefore being forwarded, as I hope that you will join in on the fun. Per Mr. and Mrs. Deauville's request, please mark your calendars, schedules permitting. Enclosure(s): Addendum from Bell South Booklet - Airport Master Plan Update My Documents/InfoLetter62 FIRST AMENDMENT TO OPTION AND LEASE AGREEMENT THIS FIRST AMENDMENT TO OPTION AND LEASE AGREEMENT ("Amendment") is made this __. day of ., 2000, by BELLSOUTH MOBILITY INC, a Georgia corporation ("BellSouth") and the CITY OF SEBASTIAN ("Landlord"). WITNESSETH: THAT WHEREAS, Landlord and BellSouth are parties to that certain Option and Lease Agreement dated as of June 15, 2000 (the "Lease"), the terms of which are incorporated herein by reference, whereby BellSouth leased certain real property located in Indian River County, State of Florida, as such property is more particularly described in the Lease (the "Leased Premises"); and WHEREAS, the parties wish to modify certain terms and conditions of the Lease as provided herein. NOW THEREFORE, for the mutual covenants and premises herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the undersigned parties, intending to be bound, hereby agree as follows: 1. Addendum. Paragraph 10 of the Addendum is hereby deleted. Paragraph 17 of the Lease is hereby ratified and affirmed. Landlord has been advised that BellSouth has sublet a portion of the Leased Premises to Crown Castle International, Inc. or an affiliate thereof ("Crown"). 2. One-Time Fee. As consideration for Landlord's willingness to delete Paragraph 10 of the Addendum, as provided herein, BellSouth agrees to make a one-time payment to Landlord of Twenty Five Thousand and No/100 Dollars ($25,000.00) (the "Fee"). Such Fee shall be payable to Landlord within thirty (30) days after which BellSouth commences material physical alteration of the Leased Premises for the purpose of constructing the wireless communications facility. If BellSouth termInates this Lease prior to such commencement of construction then the Fee shall not be payable. 3. Revenue Sharing. As further consideration for Landlord's willingness to delete Paragraph 10 of the Addendum relating to the use of ground structures with respect to the co-locating and/or subleasing of antenna space on the Leased Premises, BellSouth agrees to pay Landlord twenty-five percent (25%) of all base rent actually received by Crown, from any subtenants, licensees or sublicensees of Crown locating telecommunications equipment on the tower at the Leased Premises. Any additional amounts payable to Landlord will be determined by Crown within thirty (30) days after any new tenant shall have been installed on the tower, and Crown will promptly notify BellSouth and Landlord in writing of the amount of additional rent due under the Lease for such tenant. In the event Landlord disputes the amount of additional rent due as calculated by Crown, Landlord must notify BellSouth and Crown in writing VERO 6 MI 1 :\91687X02\ t YQV02 !.DOCk39632.0005 that it is disputing the mount due within thirty (30) days after it receives Crown's notice or such claim shall be waived. BellSouth will begin paying the amount of additional rent payable to Landlord for any new sublease within thirty (30) days after it receives notice from Crown of the amount of additional rent due (retroactive to the date upon which the tenant began paying rent under its sublease with Crown). Notwithstanding the foregoing, Landlord agrees that it will not be entitled to share in or receive any portion of any sublease payment or other consideration paid by Crown to BellSouth in connection with any subleasing or sublicensing of the Leased Premises or any part thereof by BellSouth to Crown. The foregoing shall supersede and replace any existing right of Landlord (if any) to receive additional rent or other consideration under the Lease (in the nature of revenue sharing or otherwise) as a result of any subleasing, sublicensing or other co- location of tenants on the Leased Premises by BellSouth or Crown. 4. No Other Amendments. Except as expressly modified by this Amendment, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the undersigned have executed this Amendment the day and year first above written. Signed, sealed and delivered in the presence of: BELLSOUTH: Print Name: Print Name: BELLSOUTH MOBILITY INC, a Georgia corporation By: Officer's Name: Title: Print Name: Print Name: LANDLORD: CITY OF SEBASTIAN By: Officer's Name: Title: MI 1 :\91685502\ 1YQV02 LDOC~39632.0005 2