LEGISLATIVE ACTION ITEM
SPONSOR: D.C. Reeves, Mayor
SUBJECT:
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LEASE RENEWAL - FOURTH AMENDMENT TO THE BANK OF AMERICA ATM FACILITY LEASE AGREEMENT
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RECOMMENDATION:
recommendation
That City Council approve the Fourth Amendment to the ATM Facility Lease Agreement between the City of Pensacola and Bank of America, N.A Further, that City Council authorize the Mayor to take actions necessary to execute and administer this Agreement consistent with the terms of the agreement and the Mayor’s Executive Powers as granted in the City Charter.
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HEARING REQUIRED: No Hearing Required
SUMMARY:
In May 1998, City Council approved the lease of a parcel adjacent to Fire Station No. 1 on Cervantes Street to Nations Bank (now Bank of America) for operation of an automated teller machine, for a $5,322 annual lease fee. The lease was amended in December 2001 with a reduced footprint due to stormwater retention needs, extended in December 2007, and extended again in November 2012.
In October 2022, Bank of America indicated a desire to continue operations and extend this lease via an amendment, despite the challenges of a downshift in ATM usage nationwide. This fourth amendment represents a five-year extension beginning in January 1, 2023, with an optional two (2) additional five-year extensions at the request of the tenant. The annual lease fee for the next 5 years is $26,279.40, paid in monthly installments of $2,189.95. Subsequent renewals, if exercised, will be for $28,907.28 annually for years 6 through 10, and $31,798.08 annually for years 11 through 15.
PRIOR ACTION:
May 12, 1998 - City Council approved a lease agreement with Nations Bank (now Bank of America) for operation of an ATM near Fire Station No. 1 on Cervantes Street
December 10, 2001 - City Council approved an amendment to the ATM Facility Lease Agreement with Bank of America
December 13, 2007 - City Council approved the second amendment to the ATM Facility Lease Agreement with Bank of America
November 13, 2012 - City Council approved the third amendment to the ATM Facility Lease Agreement with Bank of America
FUNDING:
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FINANCIAL IMPACT:
The next five years of this agreement will generate $131,397 ($26,279.40 annually) in revenue for the City. Also, if both renewal options are exercised, an additional $303,525 in total revenue can be realized.
LEGAL REVIEW ONLY BY CITY ATTORNEY: Yes
12/1/2022
STAFF CONTACT:
Kerrith Fiddler, City Administrator
Amy Lovoy, Finance Director
ATTACHMENTS:
1) 4th Amendment to Bank of America ATM Lease Agreement - Dec 2022
PRESENTATION: No end