TO: Mayor and Commissioners
FROM: Dale S. Sugerman, Ph.D., Assistant City Manager
THROUGH: Chief Neal de Jesus, Interim City Manager
DATE: June 6, 2017
Title
AMENDMENT TO REAL ESTATE LEASE FILE #317-3-1 BETWEEN FLAGLER STATION II LLC AND THE CITY OF DELRAY BEACH CONCERNING THE CITY'S CONTINUED USE OF THE FLORIDA EAST COAST RAILWAY RIGHT-OF-WAY
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Recommended Action:
Recommendation
Motion to Approve an amendment to Real Estate Lease File #317-3-1 between Flagler Station II LLC and the City of Delray Beach concerning the City's continued use of the Florida East Coast Railway right-of-way.
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Background:
The City of Delray Beach was provided written notice in October 2016 that the lease allowing the City's use of Florida East Coast (FEC) Railway right-of-way in the downtown area would be terminated effective November 11, 2016 due to conflicts with the construction of new rail infrastructure and expansion of rail services. In lieu of termination, the FEC was agreeable to amending the lease to allow the City to retain portions of the lease not impacted by the new rail infrastructure.
As directed by the City Manager, Environmental Services notified the FEC lease manager on November 7, 2016 that the City was interested in beginning the process to amend the lease. On March 10, 2016 the City received the Reinstatement of and Amendment to the Real Estate Lease as well as notification that the notice of lease termination was being withdrawn. The documents have been undergoing internal review.
The amendment to the lease revises the boundary of the leased premises to allow the City's continued use of the property. A condition of the lease amendment is the removal of 7 feet of asphalt, concrete curbing, and parking stops within Parcel A including a fence to prevent any encroachment into the Railroad's right-of-way.
The lease amendment requires the City's use to be no closer than 25 feet from the centerline of the main track. As a result, the size of Parcel A, ...
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