SUBJECT/RECOMMENDATION:
Title
Approve a Lease (No. 520010893) with the Board of Trustees of the Internal Improvement Trust Fund (TIIF) of the State of Florida for use of sovereign submerged lands beneath Pier 60 through April 1, 2021, authorize the appropriate officials to execute same, and adopt Resolution 16-11.
Body
SUMMARY:
The 5-year lease renewal document prepared by the State for use of submerged land under Pier 60 terminated April 1, 2016. The lease premises underlay the Pier 60 footprint on Clearwater Beach and include 14,450 square feet, more or less, of state bottomlands.
On February 1, 2016, the Marine and Aviation Department provided timely notice to the Department of Environmental Properties (DEP), Bureau of Public Land Administration of the City’s interest in renewing the subject lease for another five years. The renewal is processed after the new rates come out annually in March.
The lease remains substantially unchanged except for the annual Consumer Price Index increases. The City paid an annual lease fee for 2016/2017 of $5,607.08 on April 4, 2016, from the Pier 60 operating budget. The DEP bases this fee on a rate chart category of two times the aquatic preserve with natural shoreline. The charge was .343812 times the 14,450 square foot of bottomland. The cost of renewing the lease instrument for five years is $639.00.
On January 1, 2006, the DEP implemented a new rule whereby all revenue taken in annually from April through March for fish admission, general admission, and fish passes must be reported. This amount is multiplied by 6% and the annual lease fee is subtracted from it. Any balance remaining is payment required back to the DEP.
The income made on admission and fish passes from April 2015 through March 2016 was $279,873.70. This amount times 6% is $16,792.42. Because this is more than the 2015/2016 base fee of $4,892.74, the city will owe the DEP an additional $11,899.68 from the Pier operating fund.
APPROPRIATION CODE AND AMOUNT:
Funds are available in cost code 010-01374-544300, Land Rent, to fund this agreement.