Title:
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Approve and authorize the Chairman to execute the Second Amendment to Florida Auto Auction Properties, LLC d/b/a Orlando Longwood Auto Auction Lease. The Lease is set to expire on November 30, 2028, with no remaining renewals. The annual rent decrease is $14,772.96 for reducing the number of paved parking spaces from 490 to 390. District4 - Lockhart (Chad Wilsky, Fleet and Facilities Director)
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Division:
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Fleet and Facilities - Facilities Mntc
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Authorized By:
Chad Wilsky, Fleet and Facilities Director
Contact/Phone Number:
Sandra Aganovic/407-665-5280
Background:
On December 8, 2015, the County closed on the purchase of the property located at 2925 N. U.S. Highway 17-92, Longwood, Florida. On November 15, 2016, the Board of County Commissioners approved the lease agreement with Florida Auto Auction Properties, LLC d/b/a Orlando Longwood Auto Auction for 490 paved, striped parking spaces and a 3,000-square-foot building. The term commenced on December 1, 2016, and matured on November 30, 2019, with an option to renew for two (2) additional periods of three (3) years. On August 13, 2019, the Board of County Commissioners approved the First Renewal of the lease, which renewed the term for three (3) years from December 1, 2019, to November 30, 2022. On September 27, 2022, the Board of County Commissioners approved the lease's First Amendment, extending the term through November 30, 2028. Rent increases changed from a flat two (2) percent increase to a standard language of CPI or three (3) percent, whichever is less. The insurance provision has been updated per Risk Management directions.
The proposed Second Amendment reduces the number of paved, striped parking spaces from 490 to 390 to allow the County to utilize the main office building for its own purposes once the renovations have been completed. The effective date of the change is February 1, 2025. The current monthly rent of $10,053.83 will decrease to $8,822.75 per month on February 1, 2025, with a scheduled rent increase on December 1 of each subsequent year until November 30, 2028. The tenant continues to pay for security, utilities, janitorial, maintenance and repairs, and its own liability insurance. The County may terminate the lease upon ninety (90) days’ notice.
Requested Action:
Staff requests the Board approve and authorize the Chairman to execute the Second Amendment to Florida Auto Auction Properties, LLC d/b/a Orlando Longwood Auto Auction Lease.