TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Memorandum of Understanding Between the City of North Port, Florida, and the North Port Art Center to Memorialize the City's Support for a Future Ground Lease on City-Owned Property Located on Sam Shapos Way.
Recommended Action
Option 1: Approve the Memorandum of Understanding (MOU) between the City of North Port, Florida, and the North Port Art Center to memorialize the City's support for a future ground lease on City-owned property located on Sam Shapos Way.
City Commission Options
Option 1: Approve the MOU between the City of North Port, Florida, and the North Port Art Center to memorialize the City's support for a future ground lease on City-owned property located on Sam Shapos Way.
• Pros: The MOU formalizes the City’s support for a future ground lease on City-owned property located on Sam Shapos Way.
• Cons: Committing the property for the North Port Art Center’s (NPAC) future use limits the City’s flexibility to consider alternative uses for the site.
Option 2: Deny the MOU between the City of North Port, Florida, and the North Port Art Center to memorialize the City's support for a future ground lease on City-owned property located on Sam Shapos Way.
• Pros: Denial preserves full control of the City-owned property, allowing future use decisions to be made without obligation or restriction based on the MOU.
• Cons: Without an approved MOU confirming future site access, it is anticipated that certain funding sources, such as grants or loans, may not be available to the North Port Art Center, hindering their ability to rebuild and continue serving the community.
Background Information
The following provides a chronological order of events regarding the MOU between the City of North Port, Florida, and the North Port Art Center:
Ø May 15, 2012: The City of North Port (City) and the North Port Area Art Guild, Inc., dba the North Port Art Center (NPAC), entered into a Lease Agreement for NPAC’s use of City-owned buildings at 5948 and 5950 Sam Shapos Way, replacing a previous Lease executed in May 2007. The 2012 Lease included an initial term of five (5) years and automatically renewed year to year thereafter.
Ø September 28, 2022: Hurricane Ian made landfall in North Port as a Category 5 storm and caused significant damage to structures throughout the City, including the buildings leased by the NPAC. Temporary repairs were completed on the Art Center buildings to allow continued use, however due to the structural conditions and updated code requirements, permanent improvements were not possible. The City Commission approved the termination of the Lease Agreement on June 24, 2025, and the Art Center buildings are slated for demolition in early fall 2025.
The City of North Port values the services offered by NPAC to City residents and began discussions in 2024 to provide time for NPAC to develop a plan for the ongoing success of their organization. NPAC is working on design of new buildings and has launched a funding campaign.
The proposed MOU outlines the City’s support for a future ground lease to allow NPAC to construct buildings in approximately the same footprint as the previous Lease Agreement. Implementation of this MOU will assist NPAC’s funding efforts. In addition, the MOU outlines initial conditions required prior to the establishment of a ground lease.
The Memorandum of Understanding (MOU) between the City of North Port, Florida, and the North Port Art Center to memorialize the City's support for a future ground lease on City-owned property located on Sam Shapos Way has been reviewed by the Interim City Attorney and is legally correct as to form.
Strategic Plan Pillar
Good Governance
Financial Impact
Not applicable.
Procurement
Not applicable.
Attachments:
1. Memorandum of Understanding
2. Lease Agreement
3. June 24, 2025 Meeting Minutes
4. Florida Division of Corporations
Prepared by: Chuck Speake, Public Works Director
Department Director: Chuck Speake, Public Works Director