Item Coversheet

15.

CITY OF STUART, FLORIDA
AGENDA ITEM REQUEST
CITY COMMISSION

Meeting Date:  5/10/2021 

Prepared by:  Michael J. Mortell

Title of Item:

AMENDMENT TO HUDSON'S ON THE RIVER LAND LEASE (RC):

 

RESOLUTION No. 51-2021; A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF STUART, FLORIDA AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE LAND LEASE BETWEEN THE CITY OF STUART, FLORIDA AND HUDSON’S ON THE RIVER, PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.

 


Summary Explanation/Background Information on Agenda Request:

After the Commission approved the assignment of the Pelican Cafe lease to Hudson's, a site plan was submitted and a long term land lease was entered between the City and Hudson's which included significant financial improvements by the tenant.  The tenant has run into delays including difficulties due to Covid 19.  In addition, the South Florida Water Management Board required the ground floor of the restaurant to be raised approximately 22 inches. This resulted in significant excavation as well as a redesign which required the dining areas to raised as well.  In order to comply with access to the elevated decks, the tenant proposed extending the deck into the park and provide stairs to enter from near the board walk.  The deck area in the park will not be exclusive to Hudson's and instead will be a public area that can be used for public speaking engagements, etc.  It will be separated from the leased area by a low  fence and gate.  In addition, due to the extensive costs and delays associated with the improvements, the tenant is seeking an extension to the construction period which would make the first rental payment due on September 1, 2021.  In addition, the tenant is also seeking two additional 10 year options.  If the Commission grants the additional options to the lease, an appraisal would be required prior to allowing the tenant to exercise the first of the two options.

 

Therefore, the proposed addendum requires the rent to start on September 1, 2021 or upon receipt of a Certificate of Occupancy which ever is sooner rather than the initial date of September 1, 2020.

 

There is also an attachment to the lease which shows a site plan and the Flagler Park border.



Funding Source:

N/A

Recommended Action:

Move approval of Resolution 51-2021 authorizing the Mayor to execute an amendment to the Hudson's land lease.

 

ATTACHMENTS:
DescriptionUpload DateType
R51-2021 Amendment to Hudson's Land Lease5/3/2021Resolution add to Y drive
Amended Lease May 3 20215/3/2021Exhibit