Title
Approval and Authorization to Execute Lease - Park People, Inc. (B)
This item is a request to approve and authorize the execution of a lease with Park People, Inc., a Florida corporation for the Depot buildings and accessory facilities.
Explanation
The GCRA entered into a lease with Park People, Inc. (formerly Double 18, Inc.) in 2016 for the Depot Building and adjacent facilities. With the expiration of the lease in July, 2021, the City and Park People, Inc. have negotiated the terms of a new lease. In the interim, Park People, Inc. has been on a month to month lease under the former lease terms.
In spite of the public health crisis and the attendant small business challenges particularly for this type of local business due to its dependence on Depot Park activities, Park People, Inc. has continued its business operations and intends to have a long term presence in the area.
Terms of the Lease include the following:
1. Five Year Base Lease Term (for the entire building and surrounding grounds)
2. Priced at $11.00 / SF ($5,625 per month) with 3% increase in years 2-5
3. Two Options to Renew for successive five year terms at $13.00/SF ($6,625) and 3% annual increase (years 7-10 and 11-15)
4. No Tenant Improvement Allowance and No Rent Abatement
5. Tenant funds minor improvement; City responsible for major, systems improvements
6. Tenant pays Property Tax ($3,000) and Sales Tax (6.5%)
Strategic Connection
Goal 4: Resilient Local Economy - Objective 1) Increase the number of successful and sustainable, small and locally owned businesses.
Fiscal Note
The total revenue anticipated over the initial five year term of the lease is $ 397,635 inclusive of base rent, property tax and sales tax.
Recommendation
The City Commission: 1) approve the Lease with Park People, Inc. for the building and facilities space available at 201 Southeast Depot Avenue; and 2) authorize the City Manager to execute the Lease with Park Peopl...
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