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 $15,201.36 for reducing the number of paved parking spaces from 490 to 390. District4 - Lockhart (Stephen Koontz, Administrative Services Deputy Director)
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Division:
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Administrative Services-Real Estate
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Authorized By:
Stephen Koontz, Administrative Services Deputy Director
Contact/Phone Number:
Shane Fischer/407-665-7414
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, Board of County Commissioners, approved the First Renewal to 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 First Amendment to the lease which extended the term through November 30, 2028. Rent increases changed from a flat two (2) percent increase to the standard CPI or three (3) percent, whichever is less. Insurance provisions have been updated by Risk Management.
The proposed Second Amendment reduces the number of paved striped parking spaces from 490 to 390 to allow County to utilize the main office building for their own purposes once the renovations have been completed. The effective date of the change is February 1, 2026. The current monthly rent of $10,345.39 will decrease to $9,078.61 per month on February 1, 2026, 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. 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.