SUBJECT/RECOMMENDATION:
Title
Approve the First Amendment to the Ground Lease Agreement with Renewal Options (First Amendment) between the City of Clearwater and Jolley Trolley Transportation of Clearwater, Inc. for the ground lease of city-owned property located at 1720 Overbrook Avenue and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City of Clearwater (Lessor) and Jolley Trolley Transportation of Clearwater, Inc. (Jolley Trolley or Lessee) entered into that certain Ground Lease Agreement with Renewal Options dated January 23, 2020 (Lease Agreement). The Lease agreement between Lessee and Lessor provides Jolley Trolley a new site to build a complex for their general business practices and parking of their trolleys that supports public transportation on Clearwater Beach and locations throughout Pinellas County.
The Lease Agreement requires the Lessee to commence vertical construction within 18 months from the January 23, 2020 Lease Agreement Effective Date (Effective Date). The Lessee has diligently worked to commence construction by the current deadline, but the Lessee has experienced considerable delays in commencing the construction partially due to the COVID-19 pandemic.
This First Amendment to the Lease Agreement amends a portion of Section 6 of the Lease Agreement to include the following: 1) extends the period to commence vertical construction from 18 months to 30 months from the Effective Date; and 2) extends the requirement to complete construction of the Improvements and obtain a Certificate of Occupancy to 36 months from 24 months from the Effective Date. The Lessor’s right to terminate the Lease for Lessee’s failure to meet these timeframes is correspondingly extended to commence on the last day of these timeframes.
All other terms and conditions of the Lease Agreement shall remain in full force and effect.