LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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APPROVAL OF LEASE AGREEMENT WITH WAREHOUSE 4 SPORTS, LLC, FOR PORT OF PENSACOLA WAREHOUSE #4
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RECOMMENDATION:
recommendation
That City Council approve the Lease Agreement between the City of Pensacola and Warehouse 4 Sports, LLC for Port of Pensacola Warehouse #4. Further, that City Council authorize the Mayor to take those actions necessary to finalize, execute and administer this Lease, consistent with the terms of the attached draft lease agreement and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
The Warehouse 4 Sports, LLC group approached the City with a concept for redevelopment of the port’s existing Warehouse #4, a 45,000 sq. ft. general cargo storage facility on the Port of Pensacola. The redeveloped building will be multipurpose to include indoor court sports (i.e., pickleball, volleyball, basketball, etc.), conference/exhibition space, concerts, and other specific uses per the agreement.
All costs for redevelopment will be borne by the tenant in exchange for reduced rent for the first term of the lease. In subsequent renewal terms, the tenant will be required to show exponential value over market rate rent in the form of additional capital investment into the facility and/or tourism-related economic impact derived directly from the facility’s operations or pay market rate rent. Also, as part of the agreement, the tenant will reimburse the City for the actual cost of property insurance coverage on the building.
Additional key deal points have been detailed in an attachment to this Council item.
PRIOR ACTION:
November 2022 - Warehouse 4 Sports, LLC presented its concept of operations and vision for the facility to City Council during its regular agenda conference meeting.
FUNDING:
N/A
FINANCIAL IMPACT:
Warehouse 4 Sports, LLC, will pay $26,000 annually, with annual CPI increases capped at 5%, and will reimburse the City for the cost of maintaining property insurance on the building.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
4/15/2023
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Miller, Deputy City Administrator
Clark Merritt, Port Director
ATTACHMENTS:
1) Key Deal Points
2) Draft Lease Agreement
PRESENTATION: No end