TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Direction Regarding Status Update Relating to the North Port Art Guild Lease of City Property on Sam Shapos Way.
Recommended Action
Discussion and possible direction regarding the North Port Art Guild Lease of City Property on Sam Shapos Way.
Background Information
The following provides a chronological order of events regarding the North Port Art Guild Lease on City Property:
Ø May 15, 2012: The City of North Port and the North Port Art Guild, dba the North Port Art Center (NPAC) entered into a Lease Agreement on May 15, 2012, for NPAC’s use of City owned buildings located at 5948 and 5950 Sam Shapos Way.
Ø September 28, 2022: Hurricane Ian made landfall in the City of North Port as a Category 5 storm. Hurricane Ian caused significant damage to structures throughout the City, including the buildings leased by NPAC. Evaluation of these buildings by staff and Rostan Services, Inc., identified issues throughout the facilities. Sutter Roofing Company of Florida (Sutter) further evaluated the roof at 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.” In addition, a Guaranteed Maximum Price (GMP) from Wharton-Smith, Inc estimated all required repairs for the facility would cost approximately $223,000. Improvements this extensive activate Building Code requirements that would necessitate bringing the facilities up to all current Building Code standards.
Ø 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.
While the roof at the NPAC facility could not be replaced, it was sealed to prevent water intrusion. The lifecycle of this coating in Florida weather conditions is estimated at two years. Since the buildings are not candidates for full repair, the facility is expected to reach the end of useful life on September 1, 2025.
Ø Section 17, Destruction of Premises of the lease agreement 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.
Ø 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 advised that the current structures would not be viable past September 1, 2025.
NPAC representatives noted that their previously developed Strategic Plan had already identified the need for a new location as the facilities did not provide enough space for NPAC’s classes and growth objectives. During this meeting, staff and NPAC discussed possible partnerships in the area that have synergy with NPAC’s goals and potential next steps.
Section 3 of the Lease Agreement outlines that the lease is terminable by either party for any reason upon ninety (90) days written notice. Official notice of termination of the Lease Agreement has not yet been supplied to NPAC, and would be required on or prior to June 1, 2025, to meet the terms in the Lease Agreement.
Strategic Plan
Infrastructure & Facilities Integrity
Financial Impact
NPAC pays $12 per year which is due around the 15th of each May. There will be a general fund reduction of $12.00 annually.
Procurement
Not applicable.
Attachments:
1. Lease Agreement
2. Memo
Prepared by: Chuck Speake, Public Works Director
Department Director: Chuck Speake, Public Works Director