HomeMy WebLinkAbout2010 FLS Lease ModificationCITY OF
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HOME Of PELICAN ISLAND
CITY COUNCIL/CRA AGENDA TRANSMITTAL
Subject:
Agenda No.
Fisherman's Land Sebastian — Lease Modification
Department Origin: ity,Man e r
Administrative Srvc:
A rov for Submittal by:
City Attorney:
•
City Clerk:
n r, City Manager
Date Submitted: 29 DEC 10
Exhibits: FLS Lease — Paragraph 8; Working Waterfront Memo
EXPENDITURE REQUIRED:
AMOUNT BUDGETED:
1
APPROPRIATION REQUIRED:
1
$250,000
$200,000
$50,000
SUMMARY
This item is established as a City Council /CRA Board matter because City Council approved and
owns the property for which the project is located (1540 Indian River Drive) and the CRA
established a "Working Waterfront Project Fund" in the FY 11 Budget.
On Wednesday, December 29, 2010, the Working Waterfront Committee met to discuss the
proposed modification of the lease between the City of Sebastian and Fisherman's Landing
Sebastian (FLS). The purpose of the lease modification is two fold. First, it shifts responsibility
for making certain improvements to the Hurricane Harbor property from the City to FLS. Second
it increases the budget from $200,000 to $250,000 and authorizes funds to be provided to FLS for
modification /improvements of 1540 Indian River Drive.
These lease modifications will (1) allow the City's allocated funds to go further by reducing the
need to contract service; thereby, taking advantage of FLS personnel at no cost; (2) permit FLS
to rebuild/remodel according to their specific Florida vernacular design plan; and, (3) expedite the
renovation process.
If these lease modifications are made, FLS plans to use the facility for a (1) Fish Market; (2) No-
Waiting- Service Eatery; and, (3) demonstration /assembly area. These enterprises would be
ready to start by mid -late April 2011. At this time a lease agreement has been drafted between
FLS and Indian River Seafood, a local Sebastian Company, to occupy 1540 Indian River Drive.
(At the time of this writing the lease was not available. A draft lease should be presented to
Council the week of January 3rd.)
os-
Attached for your review is the memo submitted to the Working Waterfront Committee and the
lease modification language. For ease of dissemination, the FLS lease remains the same except
for paragraph 8. Paragraph 8 modifications are provided.
Lastly, should the renovation budget be increased, funds will be spent upon draw
requests from
FLS according to the following estimated schedu)e of values:
ITEM AMOUNT
Electric Renovations
$60,000
Roof Repair
$75,000
Structural Improvements
$30,000
Plumbing /Restroom
$20,000
A/C
$20,000
Painting
$5,000
ADA Modifications
$2,500
Contingency 15%
$37,500
TOTAL
Q.,cn nnn
RECOMMENDATION
Staff recommends adopting the proposed lease modification, establishing a $250,000 project
budget and authorize the City Manager to approve FLS payment requests up to $250,000.
FIRST AMENDMENT OF THE LEASE BETWEEN THE CITY OF SEBASTIAN AND
FISHERMAN'S LANDING SEBASTIAN, INC.
THIS FIRST AMENDMENT of that certain lease between the CITY OF SEBASTIAN, a
municipal corporation (hereinafter called "LESSOR ") and FISHERMAN'S LANDING
SEBASTIAN, INC., a non - profit corporation organized and existing under the laws of the State of
Florida (hereinafter called "LESSEE "), dated July 28, 2010, provides as follows:
WITNESSETH:
WHEREAS, the Lessor is the owner of property located at 1532 and 1540 Indian River
Drive, Sebastian, Florida; and,
WHEREAS, the lease was executed to promote and develop a working waterfront in
Sebastian, Florida to stimulate commercial fishing and tourism in the community's recognized
redevelopment district; and,
WHEREAS, the Lessor and Lessee wish to modify the Lease to expedite the central
purpose of the agreement and take advantage of cost saving measures.
NOW, THEREFORE, in consideration of the mutual covenants hereafter provided, the receipt and
sufficiency of which are hereby acknowledged by the parties have agreed as follows:
Paragraph 8 titled "Improvements" is hereby amended to read as follows:
8. IMPROVEMENTS. The Leased Premises are accepted by the LESSEE as is. The .LESSEE
agrees as follows:
A. LESSEE agrees at its sole cost and expense to design, construct and maintain the
following improvements at 1532 Indian River Drive:
(1) Restoration and creation of a new fish house. The fish house shall serve as the
primary weighing and fish processing station. The fish house will also provide a
visitor's station enabling a safe and convenient location for the general public to
view and be educated about the commercial fishing industry in Sebastian.
(2) Install and maintain new aquaculture equipment including raceways and
upwellers as necessary for the operation of the working waterfront.
(3) Install and maintain new docks and boat slips as may be determined by the
LESSEE as necessary for the operation of the working waterfront.
(4) Clear all debris; install and maintain new landscaping along the uplands portion
of the Premises.
(5) Install a north /south "public access" boardwalk along the shoreline in order to link
the waterfront properties to the immediate north and south of the premises.
Lessee shall make improvements at their discretion as scheduling and funding permits.
B. As an Economic Development component of the Stan Mayfield Working Waterfront
Grant, LESSEE agrees to solicit and oversee business operations that will be located at
1540 Indian River Drive.
Enterprises that may be located in 1540 Indian River Drive will support commercial
fishing operations and may include:
(I
(1) Fish Market, with limited seating for food and beverage service;
(2) Hosting of community events and demonstrations educating and celebrating the
contributions, history and heritage of Sebastian's commercial fishing industry;
(3) Smoke House and Seafood Operations; and,
(4) Other ancillary business /activities as approved by the LESSOR and the Florida
Communities Trust.
C. LESSEE acknowledges the existing conditions at 1540 Indian River Drive and will make
the following improvements in order to entice ancillary waterfront business:
(1) Repair Air Conditioner;
(2) Roof Repair;
(3) Interior and Exterior Painting (wall remediation);
(4) Electrical; and,
(5) Exterior Restroom Entry.
LESSOR shall pay LESSEE up to $250,000 for making said improvements. Funds shall
be paid to LESSEE for improvements based on pay request submitted to LESSOR as
improvements are made. Substantial completion of improvements shall be made by
September 30, 2011.
LESSOR shall remain the owner of the facility located at 1540 Indian River Drive and will
not be relieved of any future capital improvements or maintenance that may be required
at the facility. To that end, LESSOR shall seek grants and /or dedicate other funds to
finance future maintenance or improvement costs.
D. LESSEE shall obtain the written approval of LESSOR prior to making any improvements,
alterations, installations, additions to existing structures or new structures to be placed or
constructed on the Leased Premises. At the end of the term of this Lease, LESSEE shall
deliver the premises to LESSOR in good repair and condition, reasonable wear and tear
excepted. All installations, alterations, additions and improvements on the Premises shall
become the property of LESSOR, and on termination of the Lease Term shall be
surrendered with the Leased Premises in good condition, except any privately owned or
leased equipment.
E. All plans and specification for such renovations, improvements or construction shall be
submitted in writing to the LESSOR for approval which shall not be unreasonable
withheld or delayed.
F. Unless otherwise expressly prohibited herein, it shall be LESSEE'S sole responsibility to
obtain all necessary governmental approvals for the Leased Premises, including, but not
limited to all necessary LESSOR development approvals and permits as well as any
other agency approvals and permits. Nothing herein shall be deemed to waive or imply
waiver of any City of Sebastian governmental regulation or fee applicable to the review,
renovation or development of the Leased Premises by LESSEE nor any waiver of
LESSOR'S rights as Owner of the subject property. Nothing herein shall be deemed to
waive the LESSOR'S police powers. It is expressly understood, and agreed by LESSEE,
that LESSOR shall not be liable to LESSEE for any expense loss or damage incurred by
LESSEE resulting from the failure of LESSOR or any other governmental entity to
approve any or all necessary governmental approvals or permits required for the Leased
Premises. LESSEE acknowledges that the Leased Premises are located within the
Sebastian Community Redevelopment District and thus any change to the premises is
subject to such District's authority as well as provision of Chapter 163, Florida Statutes
and any future ordinances, statutes or other regulations applicable within the District.
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G. All structures and fixtures to be constructed upon the Leased Premises shall be owned
by LESSEE during the term of the Lease and shall be exclusively controlled by LESSEE.
However, upon expiration, termination, revocation or surrender of this Lease, LESSOR
shall become owner of all structures, fixtures and improvements. LESSEE agrees to
execute bills of sale, documents of conveyance and assignments of warranties upon
request.
All remaining terms and conditions of the initial Lease shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have set their hand this 5th day of January 2011.
ATTEST: CITY OF SEBASTIAN
A Municipal Corporation
Sally A. Maio, MMC Jim Hill
City Clerk Mayor
APPROVED AS TO FORM AND CORRECTNESS
Robert A. Ginsburg
City Attorney
Witness By:
FISHERMAN'S LAND SEBASTIAN
Ed Mangano
President
U"
TO: Members of the Working Waterfront Committee
FROM: Al Minner, City Manager
RE: WORKING WATERFRONT LEASE MODIFICATION
DATE: Wednesday, December 22, 2010
Over the course of the last several weeks significant investigation and consideration has been
dedicated toward renovation ramifications at 1540 Indian River Drive (Hurricane Harbor). The
office of the City Manager and Fisherman's Landing Sebastian (FLS) have come to the
conclusion that the most efficient, economical way to rehabilitate the facility is for the
rehabilitation process to be managed by FLS.
To date, the City has gotten the renovation process started by conducting pest remediation,
superficial landscape cleaning and removing interior items /appliances. These activities have
readied the facility for more substantial renovation. It is these renovations that the City
recommends be completed by FLS. Such renovations include (1) air conditioner; (2) roof; (3)
interior /exterior painting; (4) electrical and restroom modifications (ADA accessibility &
interior /exterior entry). The reason for shifting the renovation to FLS is three -fold. First, it allows
the City's allocated funds to go further by reducing the need to contract services; thus reducing
personnel costs. Second, FLS has a specific interior /exterior, Florida vernacular plan for
rehabilitation and they are the best organization to execute the remodeling vision. Third, FLS will
be able to expedite and open the facility quicker.
At this time, FLS has begun lease negotiation to open a fish market and kitchen operations in the
facility. Upon completion of renovation activities, the Hurricane Harbor building will host three
operations — (1) Fish Market; (2) No- Waiting - Service Eatery; and, (3) demonstration /assembly
area.
FLS would like to be sustainably complete with these renovations and open by April 2011.
To bring this operation plan into action, permits must be issued by the Sebastian Building and
Growth Management Departments. The City will be responsible for the cost of professional
services associated with permitting. Specifically, a building permit is required for remodeling
permits and a floor plan review is required by Growth Management. Because these activities are
only minor use modifications, staff has the authority to review /approve the plan submittals. In
addition to these permits, Indian River County Fire and Health Department inspections will also
be required.
Finally, to move the aforementioned action plan forward, a lease modification and additional
funding allocation is required. Currently, there exists a lease between the City and FLS. In
paragraph eight of the lease, the renovation plans are described for the actual working waterfront
and Hurricane Harbor facility. However, the current lease stipulates that the City will conduct the
remodeling efforts. In order to execute the plan as outlined in this report, paragraph eight of the
lease must be modified to allow FLS to make said repairs. Additionally, to cover the cost for
renovations and to cap expenditures for the City, the lease modification states that the City will
pay up to $250,000 for renovation expenses. This action requests that the CRA Board /City
Council increase the FY 2011 Working Waterfront Budget by $50,000.
With regard toward the actual working waterfront, staff anticipates the delivery of a site plan and
review shortly. FLS is required by the current lease to finance and make these improvements.
The Committee reviews this draft site plan at the last meeting.
In closing, the meeting scheduled for Wednesday, December 29, 2010 will address these issues.
Staff will also be seeking that the Committee recommend approval of this action plan to City
Council /CRA Board at their special meeting scheduled for Wednesday, January 5, 2011
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