Item Coversheet

12.

CITY OF STUART, FLORIDA
AGENDA ITEM REQUEST
CITY COMMISSION

Meeting Date:  10/14/2019 

Prepared by:  David Dyess

Title of Item:

THE PELICAN CAFE LEASE, 351 SW FLAGLER AVENUE (RC):

 

RESOLUTION No. 71-2019; A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF STUART, FLORIDA TO AUTHORIZE THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY OF STUART AND THE PELICAN CAFÉ, LLC FOR THE PROPERTY LOCATED AT 351 SW FLAGLER AVENUE, STUART; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.

 


Summary Explanation/Background Information on Agenda Request:

The Pelican LLC has requested a renewal of their lease prior to lease end of their current lease. After discussion on facility improvement, lease terms and rates the attached lease is what has been agreed upon by Pelican LLC.

 

Staff agrees to these terms based on the current ownership of the Pelican Cafe  LLC. Staff has recommended language in the lease that would evaluate rates if ownership were to change during the term of the lease, however the Pelican Cafe LLC. has asked not to have the below language included:     

.

Any of the following acts shall constitute a transfer and shall require the Landlord's approval:

 

(A) Transfer the demised premises or any portion thereof to any "affiliate company." An "affiliate company" shall mean,  any corporation, partnership or other business entity or individuals under common control and ownership with the Tenant, or with the parent or any subsidiary of the Tenant.

 

(B) Merge into or consolidate with any corporation, limited liability company or individual.

 

(C) Transfer the demised premises or shares of the current LLC, or any portion thereof, to any buyer of the business operations of Tenant

 

(D) Transfer the leased premises to any franchisee or licensee of the Tenant.

 

(E)  Any sale of all or any of the shares of Tenant shall be considered as a transfer or assignment of this lease which shall require the approval of Landlord.

 

In the event that a transfer or assignment occurs, Tenant agrees that Landlord shall immediately have the right to renegotiate the rent which shall be defined as the going rate that rental properties in a specific area can be expected to rent for when compared to other properties of similar size, condition, and amenities.



Funding Source:

N/A

Recommended Action:

Motion to approve lease to be executed by the Mayor and City Clerk after language is added to reevaluate the lease rate if Pelican Cafe LLC were to change ownership.

 

ATTACHMENTS:
DescriptionUpload DateType
Resolution 71-20199/12/2019Resolution add to Y drive
Pelican Cafe Lease10/7/2019Attachment