Summary
To: Mayor Gary H. Katica & Commissioners
From: JP Murphy, Town Manager
Date: 5/15/2020
______________________________________________________________________
Subject:
Title
First Reading of Ordinance 531 Authorizing Ground Lease with Belleair Country Club
Summary:
At the 3/30/20 Regular Commission Meeting the Belleair Country Club (BCC) revised their offer to lease the parcel of land known as Waterfall West Park. The 60'x 300' parcel extends westward toward Clearwater Harbor from the Bayview right-of-way just north of the bridge. Attached for your consideration is a draft lease agreement. The summary terms are:
* $350,000 payable in full as of the effective date of agreement
* Annual amounts begin upon commencement date which is the lesser of 120 days or project approvals by all regulatory agencies.
* "Triple Net"
* BCC responsible for all Maintenance inclusive of the seawall.
* 10 foot pedestrian access to the tip, primary right of use provided to persons golfing
Years 1-10
$22,500.00
$225,000.00
Years 11-15
$23,175.00
$115,875.00
Years 16-20
$23,870.25
$119,351.25
Years 21-25
$24,586.36
$122,931.80
Years 26-30
$25,323.95
$126,619.75
Lease Payments
$709,777.80
Due at Closing
$350,000.00
Actual Cash Value
$1,059,777.80
NPV %5
$725,419.82
Please see the attached lease draft document for more detail.
Body
Previous Commission Action: Commission accepted the BCC's LOI on 3/30/20. The Commission previously held several public meetings on the issue including two open-house discussions at the parcel itself. During the 08/06/19 meeting the Commission asked that I negotiate terms with the Belleair County Club. The town also had an appraisal performed on the property it is attached to the item. Additionally, the Florida Commission on Ethics Advisory Opinion 20-03 is attached for reference.
Financial Implications: Without discounting the offer, and exclusive of non-enumerated costs for maintenance or the seawall, the total cash value of the agreement ...
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