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HomeMy WebLinkAbout2010 Business Plan / FLS Lease aff OF S 11 BASTIAN Arnow HOME OF PELICAN ISLAND AGENDA TRANSMITTAL Subject: Agenda No. (U, I(2 Fishermen's Land Sebastian Lease Department Origin: City Manager Working Waterfront Business Plan City Attorney: City Clerk: A I pr• for Submittal by: Finance: • GMD: I Date Submitted: 22 JUL 10 " 'ri -r, City Manager Exhibits: EXPENDITURE REQUIRED: AMOUNT BUDGETED: APPROPRIATION REQUIRED: $200,000 $0 $200,000 SUMMARY In closing the Stan Mayfield Working Waterfront Grant and initiating a working waterfront program, Council should consider adoption of two documents. First, is the Working Waterfront Business Plan. The Plan was prepared by the Growth Management Department in conjunction with input from City Council and the Waterfront Committee. The Florida Community Trust (FCT) has approved the plan. At their meeting on Monday, July 19, 2010, the Waterfront Committee recommended approval of the plan with a few grammatical/incorrect references corrections/clarifications. Second, enclosed is a lease between the City of Sebastian and the Fishermen's Landing Sebastian, Inc. (FLS). FLS is a non-profit organization, comprised of fishermen whose goal is to operate and maintain a working waterfront. This lease establishes a relationship between the City and FLS for an operation, development and maintenance plan for the recently acquired parcels (1532 and 1540 Indian River Drive). Essentially, the Lease allows FLS to govern the properties and invest revenue generated from the parcels, in the form of a lease credit, towards redevelopment. The concept seeks a community wide benefit by redeveloping blight and promoting Sebastian tourism, which then benefits local business. The Waterfront Committee reviewed the proposed lease and recommends adoption. The Waterfront Committee provides commentary on two lease items, but gave the City Manager discretion to handle the items accordingly. Those comments were; (1) clarification on boat trailer and commercial vehicle parking; and, (2) live aboard vessels that may dock at the marina. To address these concerns, the draft document previously provided to Council has been modified. More clarification language has been added to Paragraphs 16.B and 16.C. The new language is underlined in the lease attached to this transmittal. In addition to these Waterfront Committee comments, in their last review FLS also requested that accrued rent credits be applied to the term of a renewed lease. This change is underlined in Paragraph 6. Finally, in approving this lease, Council's attention should be drawn to paragraph 8.B. This lease makes a financial commitment to complete specific renovations to the Hurricane Harbor facility. It is estimated that these improvements will cost $200,000. If Council approves the FSL Lease, it will also be committing to make these improvements. Hence, it will be assumed by staff that by authorizing the FLS Lease, a Working Waterfront Project fund will be created by transferring $200,000 from the FY 10 CavCorp Project Budget (CavCorp is currently budgeted in FY 10 in the amount of $400,000; however has not moved forward, as directed by Council, until the CRA Master Plan is complete). The FLS expense should then be recognized accordingly in moving forward with FY 11 CIP and CRA Master planning. RECOMMENDATION This is a dual action item, staff recommends: 1. Approve the Working Waterfront Business Plan, as suggested and amended by the Waterfront Committee; and, 2. Execute FLS Lease as recommended by the Waterfront Committee and amended herein.