Item No: 4.C.3.
Meeting Date: May 13, 2013
From: Doug Drymon, Deputy City Manager
Subject: Resolution authorizing a Ground Lease Agreement with Phillips Sales, Inc. d/b/a Phillips Toyota for space at Leesburg International Airport.
Staff recommends approval of the submitted Ground Lease Agreement with Phillips Sales, Inc. d/b/a Phillips Toyota.
Phillips Sales, Inc., d/b/a Phillips Toyota, desires to enter into a short term lease with the City for the same vacant parcel of property the company leased at the Airport several years ago while their dealership facility off US HWY 441 was undergoing expansion and renovation. Phillips Toyota needs this additional land to park an unexpectedly large shipment of vehicles the company has just received. Airport Operations Manager Leonardo Treggi has negotiated a lease rate with Phillips Toyota amounting to $1,500.00/month, excluding taxes. (The lease rate Phillips paid the City in 2010 was $1,353.00/month.) The site in question is the vacant field located between TH@T! Company and Lake Regional Urgent Care. Phillips’ temporary use of the property is not anticipated to interfere with any existing or planned use of the site.
The effective date of the lease for the purpose of charges and payments will be May 2, 2013. Proof of liability insurance coverage naming the City of Leesburg as an additional insured is a requirement for Phillip’s use of the property.
In view of Phillips Toyota’s urgent need to use the site, and the insufficient time available to take the lease through the normal approval process, the Airport Advisory Board was notified on May 1st by written communication and briefed on the situation.
1. Approval of the submitted Ground Lease Agreement.
2. Such alternative action as the Commission may deem appropriate.
This lease will generate $4,500.00 in net revenue for Leesburg International Airport over the initial three month term, and an additional $1,500.00 in net revenue for each month thereafter that the tenant continues to occupy the property.
Department: __Administration _______
Prepared by: ______DD__________
Attachments: Yes_X__ No ______
Advertised: ____Not Required ______
Attorney Review : Yes_X_ No ____
Reviewed by: Dept. Head ________
Finance Dept. BLM,____________
Deputy C.M. _______DD_________
City Manager ___________________
Account No. _001-0000-362-0110____
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A GROUND LEASE AGREEMENT WITH PHILLIPS SALES, INC. D/B/A PHILLIPS TOYOTA FOR SPACE AT LEESBURG INTERNATIONAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute a Ground Lease Agreement with Phillips Sales, Inc. d/b/a Phillips Toyota whose address is 8629 South U.S. Highway 441, Leesburg, Florida 34788 for certain described space at Leesburg International Airport.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 13th day of May, 2013.