Title
Approval and Authorization to Execute a Lease Agreement (B)
This item is a request to Approve and Authorize the Execution of a Lease Agreement with KJB Investment Corporation, a Florida S Corporation.
Explanation
The City of Gainesville has an Exclusive Right of Lease Agreement with Bosshardt Realty Services, Inc., Eric Ligman for the southern suite at the Downtown Parking Garage, known as 60 Southwest 2nd Street. Mr. Ligman has produced a prospective tenant known as KJB Investment Corporation, a Florida S Corporation. KJB proposes to use the facility for an upscale drinking establishment, doing business as the Whiskey House. The Whiskey House will feature a simplistic menu featuring Whiskey cocktails Bourbon, and Scotch spirits but also a listing of all other available beers and spirits. The décor will mirror the theme consisting of bold wood designs and iron accents to mirror the feel of a distillery full of barrels of whiskey. The proposed lease, after negotiations, is for the market rental rate, three percent annual increases in rental rates, starting on the second year, and an initial term of three years. The provisions of the Lease Agreement also provide for two consecutive three-year lease extensions with annual three percent increases. KJB is asking for the first three months of rent to be waived in exchange for approximately $100,000 of renovation costs. The total rent over the initial term of the Lease is $111,175.47 including sales tax and utilities.
Staff believes it would be in the best interest of the City to approve the Lease with KJB Investment Corporation.
Fiscal Note
The total revenue anticipated over the three year term of the lease is $111,175.47 including sales tax and utilities.
Recommendation
The City Commission: 1) approve the Lease Agreement with KJB Investment Corporation for the space available at 60 Southwest 2nd Street, and 2) authorize the City Manager to execute the Lease Agreement with KJB Investment Corpo...
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