TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Termination of the Lease Agreement Between the City of North Port, Florida, and the North Port Art Guild, Inc., dba, the North Port Art Center.
Recommended Action
Approve the Termination of the Lease Agreement Between the City of North Port, Florida, and the North Port Art Guild, Inc., dba, the North Port Art Center.
Background Information
On May 15, 2012, the City of North Port (City) and the North Port Art Guild, 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 renews year to year thereafter.
On 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. Evaluation of these buildings by staff and Rostan Solutions, LLC identified issues throughout the facilities. Sutter Roofing Company of Florida (Sutter) further evaluated the roof at the NPAC and based on findings of leaks, rust, and impacts from heavy wind and rain, Sutter rated the roof at an overall condition of “F - less than 1 year of service life remaining.” Evaluation of the buildings indicated that the facilities do not have the structural integrity to support roofing in line with current code requirements, and repairs at this level could not be completed.
In addition, a Guaranteed Maximum Price (GMP) from Wharton Smith estimated all required repairs for the facility would cost approximately $223,000.00. Improvements this extensive would require the City to bring the facilities up to all current building code standards.
Section 17. Destruction of Premises, of the 2012 Lease states that in the event that the Leased Premises is destroyed or damaged to the extent of being unfit for the intended use, the Lessor may either rebuild or repair the Leased Premises, or terminate the Lease, at Lessor' s sole option. In addition, Section 3 of the leases outlines that the Lease is terminable by either party for any reason upon ninety (90) days written notice.
The City of North Port values the services offered by NPAC to City residents and sought to begin dialogue early to provide time to develop a plan for the ongoing success of this organization. City staff met with representatives of the NPAC on August 30, 2024, to discuss the condition of the building and since the buildings are not candidates for full repair, the facility would reach the end of useful life on September 30, 2025.
The Department of Public Works is coordinating with the NPAC on a Memorandum of Understanding (MOU) to explore future collaboration opportunities. Once completed, this proposed MOU will be brought to the City Commission for consideration.
The Department of Public Works requests City Commission approval to terminate the current Lease Agreement with the NPAC.
The letter to terminate the Lease Agreement Between the City of North Port, Florida, and the North Port Art Guild, Inc., dba, the North Port Art Center has been reviewed by the Interim City Attorney and is legally correct as to form.
Strategic Plan
Good Governance
Financial Impact
Termination of this Lease will have a loss of general fund revenues in the amount of $12.00 per year following the Contract that was executed in 2012.
Procurement
Not applicable.
Attachments:
1. Lease Agreement
2. Draft Termination Letter
Prepared by: Chuck Speake, Public Works Director
Department Director: Chuck Speake, Public Works Director