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HomeMy WebLinkAbout2010 - 2nd Lease AmendmentSECOND AMENDMENT OF AVIATION LEASE AGREEMENT THIS SECOND AMENDMENT of the AIRPORT AVIATION LEASE AGREEMENT (hereinafter "Lease by and between the CITY OF SEBASTIAN (hereinafter "Landlord and LoPresti Aviation (hereinafter "Tenant dated 2 April 2008, and provides as follows: WITNESSETH: WHEREAS, the Landlord is the owner of certain property located in Indian River County, Florida; and WHEREAS, the Landlord agreed to lease such property under the terms of the Lease to Tenant; and, WHEREAS, the Tenant wishes to modify, Section 4 of said Lease; and, WHEREAS, Landlord and Tenant are mutually agreeable to said modification; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: 1. Section 4 of the Lease is hereby amended by the adding paragraph 4(g): ATTEST: a all Maio MC All provisions of Section 4 Rent shall remain in full force and effect during the term of this lease, with the exception of the rent deferment payment plan hereby provided. In recognition of the economic climate, Landlord provides a temporary rent deferment plan to the Tenant whereby only the base rent payment due between the months of February 2010 October 2010 shall be deferred. This 9 month period of rent deferral shall not exceed a total rent amount of $33,300. Beginning in November 2010, Tenant shall re- commence base rent payments and an additional $1,000 per month until such deferred payment ($33,300) is repaid to the Landlord. Upon the completion of deferred rent payments, all other sections of provisions of Section 4 Rent, shall be in full force and effect. 2. All other provisions of the subject Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands and seals this 13 day of January 2010. Approved as to Form and Legality for Reliance by the City Of Sebastian only: Robert A. Ginsburg, City Attorney 1 CITY OF S A M nicip TENANT LoPresti Aviat ASTIAN poration ity Manager Curtis LoPresti, President Sally Maio From: Alfred Minner Sent: Tuesday, March 16, 2010 9:40 AM To: council Cc: Debbie Krueger Sally Maio; Robert Ginsburg Subject: LoPresti Lease Attachments: MANAGER1794_000.pdf Council Members: Page 1 of 1 Back in January 2010, Council approved the LoPresti Aviation Lease Deferral. The approved action was to provide LoPresti with 9 months of rent deferral and repayment would be $1,000 per month until the total deferment amount is repaid. Their current monthly rent is $3,700 per month. That actually totals a deferment amount of $33,300. Recently, the Administrative Services Department was setting up the billing account for this action and found an error in the spread sheet I prepared, which I transposed into the Second Amendment for the Lease. The error was I wrote the deferral amount as $30,300. At first glance, this may seem like an error to the City's favor; however it is not. The error actually costs the City $3,000 in deferral payments, because the LoPresti's are expecting a 9 month deferral and we can not charge a deferral amount that is greater than what the Second Lease Agreement states ($30,300). Hence, to make this error reconcile in Finance, the City would either have to (1) bill LoPresti $3,000 in month 9; or (2) collect a deferral amount $3,000 less than the $33,300, as written in the lease amendment. Because the intent of the action was dearly to give 9 months at $3,700 in deferred lease payments, an administrative action is needed to correct the Second Lease Amendment. The purpose of this memo is to notify Council that the error was made and that staff is administratively correcting it. A corrected second lease amended is attached and signed by Curt LoPresti and reflects the correct amount. Attached to this correspondence are the documents with my handwriting showing where the errors were. My apologies for the error. As always, if you have any questions, please let me know at your convenience. Al Minner City Manager City of Sebastian 3/16/2010 THIS SECOND AMENDMENT of the AIRPORT AVIATION LEASE AGREEMENT (hereinafter "Lease by and between the CITY OF SEBASTIAN (hereinafter "Landlord and LoPresti Aviation (hereinafter "Tenant dated 2 April 2008, and provides as follows: ATTEST: Sally Maio, M WITNESSETH: WHEREAS, the Landlord is the owner of certain property located in Indian River County, Florida; and WHEREAS, the Landlord agreed to lease such property under the terms of the Lease to Tenant; and, SECOND AMENDMENT OF AVIATION LEASE AGREEMENT WHEREAS, the Tenant wishes to modify, Section 4 of said Lease; and, WHEREAS, Landlord and Tenant are mutually agreeable to said modification; NOW, THEREFORE, in consideration of the mutual covenants hereinafter provided, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows: 1. Section 4 of the Lease is hereby amended by the adding paragraph 4(g): All provisions of Section 4 Rent shall remain in full force and effect during the term of this lease, with the exception of the rent deferment payment plan hereby provided. In recognition of the economic climate, Landlord provides a temporary rent deferment plan to the Tenant whereby only the base rent payment due between the months of February 2010 October 2010 shall be deferred. This 9 month period of rent deferral shall not exceed a total rent amount of $30,300. Beginning in November 2010, Tenant shall re- commence base rent payments and an additional $1,000 per month until such deferred payment ($30,300) is repaid to the Landlord. Upon the completion of deferred rent payments, all other sections of provisions of Section 4- Rent, shall be in full force and effect. 2. All other provisions of the subject Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands and seals this le day of January 2010. Approved as to Form and Legality for Reliance by the City Of Sebastian only: CITY OF SEBASTIAN A M nicip. Corporation 1 i/ I i er, City Manager sti iati TEN A LoPr Robert A. Ginsburg, Ci orne y Curtis LoPresti, President 1