TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Approve the Mutual Termination of Lease Agreement By and Between the City of North Port, Florida and the Jockey Club of North Port Property Owners’ Association, Inc., Relating to Approximately 24.33 Acres of City-Owned Property Located Within Tracts E, J, K, and L of the Fifty-Second Addition to Port Charlotte.
Recommended Action
Option 1: Approve the Mutual Termination of Lease Agreement by and between the City of North Port, Florida, and the Jockey Club of North Port Property Owners’ Association, Inc., relating to approximately 24.33 acres of City-owned property located within Tracts E, J, K, and L of the Fifty-Second Addition to Port Charlotte.
City Commission Options
Option 1: Approve the Mutual Termination of Lease Agreement between the City of North Port, Florida, and the Jockey Club of North Port Property Owners’ Association, Inc., relating to approximately 24.33 acres of City-owned property located within tracts E, J, K, and L of the Fifty-Second Addition to Port Charlotte.
• Pros: Returns possession and control of the property to the City for future management and use.
• Cons: Requires the City to assume responsibility for the property following termination of the lease, including any required insurance coverage and other management needs.
Option 2: Deny the Mutual Termination of Lease Agreement between the City of North Port, Florida, and the Jockey Club of North Port Property Owners’ Association, Inc.
• Pros: Allows the existing lease to remain in place, including the Jockey Club's current responsibility for maintaining liability insurance on the property.
• Cons: Continues the existing perpetual lease and does not return possession and control of the property to the City. The City and Jockey Club may need to continue discussions regarding the future of the property and the lease.
Background Information
The following provides a chronological order of events pertinent to the Lease Agreement by and between the City of North Port, Florida, and the Jockey Club of North Port Property Owners’ Association, Inc., relating to approximately 24.33 acres of City-owned property located within Tracts E, J, K, and L of the Fifty-Second Addition to Port Charlotte:
Ø December 21, 1981: During the City Commission Regular Meeting, the Commission unanimously approved a Lease between the City of North Port, Florida, as Lessor, and the Jockey Club of North Port Property Owners' Association, Inc., as Lessee. The Lease provides for annual rent of $1 and a perpetual term subject to its termination provisions.
The leased property consists of portions of Tracts E, J, K, and L in the Fifty-Second Addition to Port Charlotte, totaling approximately 24.33 acres. The property is subject to recorded easements, restrictions, reservations, covenants, and other limitations.
The Lease assigns the Jockey Club responsibility for management, maintenance, utilities, insurance, and other matters associated with the premises while the City retains ownership. Buildings and alterations require prior City consent, and use of the premises is subject to the restrictions contained in the lease and related property instruments.
Ø September 28, 2021: During the City Commission Regular Meeting, there was a City Commission consensus “to instruct the City Manager to work with the City Attorney and Jockey Club to gather information regarding the 99-year lease to determine if the Jockey Club will release property back to the City, and contingent upon that response, gather information regarding the cost of relocating the gopher tortoises.”
Ø April 11, 2023: During the City Commission Regular Meeting, the Commission made a motion to “direct the City Attorney and the City Manager to make a good faith effort to renegotiate the lease agreement with the Jockey Club of North Port Property Owners Association, Inc. with no financial payout for rental of the Canine Club Dog Park, and to report back in terms of progress made or obstacles encountered to City Commission as soon as possible.”
Ø 2025 and 2026: City staff and the Jockey Club subsequently discussed the Lease. Negotiations continued during 2025 and 2026, including a meeting with the Jockey Club President on May 1, 2026. The parties have now negotiated an Agreement that would end the 1981 Lease and return possession of the property to the City.
The Mutual Termination of Lease Agreement between the City of North Port, Florida, and the Jockey Club of North Port Property Owners’ Association, Inc., has been reviewed by the City Attorney and is legally correct as to form.
The Mutual Termination of Lease Agreement between the City of North Port, Florida, and the Jockey Club of North Port Property Owners’ Association, Inc., has been provided to the City Clerk’s Office on August 31, 2026, for signature, subject to City Commission approval.
Strategic Plan Pillar
Infrastructure & Facilities Integrity
Good Governance
Financial Impact
The existing Lease provides for nominal annual revenue of $1.
Following the Termination Date, the City may incur operating or capital costs related to inspection, maintenance, security, utilities, insurance, repair, management, or improvement of the premises depending on how the property will ultimately be used and managed.
Procurement
Not applicable.
Attachments:
1. Mutual Termination of Lease Agreement
2. Original Lease Agreement
3. September 28, 2021 Minutes
4. Aprill 11, 2023 Minutes
Prepared by: Chelsea Buell, Administrative Servies Specialist
Department Director: Chuck Speake, Public Works Director