TO: Mayor and Commissioners
FROM: Noel Pfeffer, City Attorney
DATE: June 21, 2016
Title
FIFTH AMENDMENT TO LEASE AGREEMENT BETWEEN CITY OF DELRAY BEACH FLORIDA AND OLD SCHOOL SQUARE, INC. FOR OLD SCHOOL SQUARE CAMPUS
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Recommended Action:
Recommendation
Motion to Approve Fifth Amendment to Lease Agreement Between City of Delray Beach, Florida and Old School Square, Inc. (“OSS”) for Old School Square Property
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Background:
This is a housekeeping item. The City and OSS previously entered into a lease agreement dated July 31, 1989 and subsequently amended the agreement four times. The current (Fourth) Amendment expires July 31, 2016. Concurrently, the City and OSS entered into and amended a mangement agreement, which is coterminous with the lease. The City and OSS have been discussing the terms of a potential extension to the lease and management agreements. It is unlikely that these discusisons will bear fruit and permit proper consideration by the Commission before the expiration date of the current amendment.
Attached for Commission consideration is an extension of the current lease until September 30, 2016 with a month-to-month lease extension through December 31, 2016, to allow the City Manager and OSS to finalize proposed terms for a further lease extension. Any such lease extension would be subject to further discussion and approval by the City Commission.
The effect of this recommendation would be to extend the current lease and management agreements with no change in terms and conditions.
Copies of the proposed lease amendment and the existing lease and management agreements, with amendments, are attached.
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source:
There is no funding associated with this item.
Timing of Request:
The current lease expires July 31, 2016, with no provision for automatic extension.