ACTION ITEM
SPONSOR: Teniade Broughton, Chairperson
SUBJECT:
title
TERMINATION OF LEASE AGREEMENT WITH PENSACOLA SPORT ASSOCIATION
end
RECOMMENDATION:
recommendation
That the Community Redevelopment Agency (CRA) terminate the lease agreement with the Pensacola Sports Association (PSA) for the property located at 101 West Main Street as of 11:59 p.m. central standard time on September 30, 2023. Further, that the CRA authorize a lease termination fee, in the amount of $27,670, to allow for the CRA to reacquire the full rights of ownership necessary to redevelopment the property prior to the current lease termination date of October 31, 2026. Finally, that the CRA Chairperson be authorized to execute all necessary documents.
end
body
SUMMARY:
On May 13, 1993, the Community Redevelopment Agency (CRA) approved a 30-year lease agreement with the Pensacola Sports Association (PSA) for the lease of the property located at 101 West Main Street. On July 14, 2003, the CRA approved an amendment to the lease agreement to provide additional parking for the development of the Pensacola Association of Realtors (PAR) office at 107 West Main Street. A second amendment, approved on April 20, 2020, authorized a three (3) year extension terminating on October 31, 2026.
The CRA is asked to terminate the lease early to reacquire the full rights of ownership necessary to redevelop the property prior to the current lease termination. To facilitate relocation associated with early termination, the CRA would pay a lease termination fee in the amount of $27,670. Short term and/or month-to-month occupancy of the building would be sought until the property is redeveloped.
In accordance with the 2010 Urban Core Redevelopment Plan and based on the property’s downtown location within proximity to the waterfront, it is anticipated that the property will be redeveloped primarily for high density, market rate housing. An item will be brought back to the CRA defining the criteria for redevelopment and proposal requirements prior to solicitation.
PRIOR ACTION:
May 13, 1993 - CRA approved a lease agreement with the Pensacola Sports Association for the lease of the 101 West Main Street parcel.
May 13, 1993 - City Council ratified the CRA’s approval of a lease agreement with the Pensacola Sports Association for the lease of the 101 West Main Street parcel.
March 23, 1995 - CRA approved a 12-month extension of the date outlined in Section 4 of the lease agreement for the lease of the 101 West Main Street parcel.
July 14, 2003 - CRA approved an amendment to the lease agreement to provide additional parking for the development of the Pensacola Association of Realtors office located at 107 West Main Street.
April 20, 2020- CRA approved a second amendment to the lease agreement to extend the lease for a period of three (3) years, terminating on October 31, 2026.
May 28, 2020 - City Council ratified the CRA’s approval of the second amendment to the lease agreement to extend the lease for a period of three (3) years, terminating on October 31, 2026.
FUNDING:
Budget: $ 27,670 CRA Fund- Acquisition & Redevelopment
Actual: $ 27,670
FINANCIAL IMPACT:
Under the current lease terms, the CRA receives $5,940 per year. Lease payments were set to increase to $6,059 beginning November 1, 2023. Termination of the lease will cease future lease payments to the CRA. The lease termination fee, in the amount of $27,670, is available in the FY2023 CRA budget.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
8/28/2023
STAFF CONTACT:
David Forte, Deputy City Administrator
Sherry Morris, Development Services Director
Victoria D’Angelo, CRA Division Manager
Click or tap here to enter text.
ATTACHMENTS:
1) Termination of Lease Agreement
PRESENTATION: No end