TO: Mayor and Commissioners
FROM: Missie Barletto, Public Works Director
THROUGH: Jennifer Alvarez, Interim City Manager
DATE: June 01, 2021
Title
EXTEND LEASE AGREEMENT TERMS FOR LEASE OF GLEASON PARKING LOT PREMISES WITH FIRST PRESBYTERIAN CHURCH OF DELRAY BEACH
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Recommended Action:
Recommendation
Motion to Approve renewal of the lease agreement with the First Presbyterian Church of Delray for a period of five years. This recommendation is in compliance with the Code of Ordinances, Chapter 36, Section 36.07(A)(3), “City Commission Approved Contracts, Renewal”.
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Background:
Downtown Delray Beach has been booming in development for the last 21 years, with growth in commercial and retail establishments along Atlantic Avenue, which created a demand for available parking. The City met this demand for parking by entering into a lease agreement for parking spaces with the First Presbyterian Church of Delray. The City has been leasing a parking lot on Gleason Street from the Church on a continuing contract basis for the past 21 years.
In June 2016, amendment two extended the previous five-year lease agreement, with renewable provisions, with an expiration date of May 31, 2021. The parties wish to extend the term of the lease agreement for an additional five years, which would begin on June 1, 2021, expiring on May 31, 2026. Both parties have agreed to the original terms and existing rates, which allows for increases by 3% per year on a compounded basis, effective annually on each anniversary date of the agreement.
Renewal of the lease agreement is in compliance with the Code of Ordinances, Chapter 36, Section 36.07(A)(3).
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source/Financial Impact:
FY21 Funding is available from 001-45-150-545.44-10. Funding for future years will be prioritized and budgeted within the Parking Division.
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Timing of Request:
This is a time sensitive item. The current valid contracts expired on May 31, 2021.