De artment
Subject
CITY OF DELAND FLORIDA
REQUEST FOR COMMISSION ACTION
December 5 2011
Attachments
City Manager
Consideration
re
First
Amendment to Limited Lease
with Stetson
University
Agreement
Conrad Park
X
First Amendment to the Limited Lease
Agreement with Stetson University
X
Sign Rendering
Prepared by
Approved by
Department Head
Michael Pleus City Manager
SUMMARY Recently Stetson University approached staff with a new concept for
HIGHLIGHT
the scoreboard at Conrad Park as the existing scoreboard is in need of replacement According to
the Lease Agreement Stetson is responsible for scoreboard replacement They would like to replace
the scoreboard with a significantly enhanced digital scoreboard with video display The cost of a
regular scoreboard is approximately 40
000 versus the digital replacement at approximately
000 To accomplish this Stetson had asked the City
300
to somehow share in the costs
Staff
indicated that it would not be feasible for the City to share in the costs of this new scoreboard given
our other capital investments and budget constraints However staff did offer a different approach
that would help Stetson afford the cost of the sign while keeping the City
s revenue constant
Currently the lease agreement with Stetson provides for revenue sharing from advertising as
s payment for use of the Stadium This revenue has been totaling nearly 18
Stetson
000 per year
for the past five years This revenue sharing versus actual rent was negotiated due to the fact that
Stetson paid 1
3 million of the upfront costs for the stadium in 1998 The initial agreement would
run through January of 2019 Under the terms staff negotiated Stetson would
Pay an annual rent of 18
000
Pay for the costs to insure and maintain the new scoreboard
Pay for the replacement of the new scoreboard useful life is 8 10 years
In exchange the City would
Waive revenue sharing in exchange for the payment of 18
000 per year This would allow
Stetson to utilize increased advertising revenue from the new scoreboard to offset the cost it
Extend the lease agreement from 2019 to 2021 This would allow Stetson two more years at
the 18
000 rate as they will need to replace the scoreboard by 2021
Assuming the City Commission is in agreement with staff on this arrangement the attached first
amendment to the limited lease agreement would make the necessary changes to the lease
agreement Staff notes that one of the principal reasons Stetson would like to install this advanced
scoreboard is that our existing scoreboard was one of the concerns that the NCAA had with our field
in considering whether the regional tournament games would be played at Conrad Park this past
summer
Tournament games would provide a significant source of revenue to City businesses
during the time at which the games are being played as well as positive image advertising for the
City
Page
2 of 2
SUBJECT
December 5 2011
Consideration re
Universitv
First Amendment to Limited Lease Agreement with Stetson
Conrad Park
STRATEGIC PLAN FOCUS AREA
ACTION STEP High Value Government
FISCAL IMPACT This item should not have a fiscal impact through 2019 Between 2019 and
2021 the fiscal impact is unknown as the renewal has not been negotiated in terms of the new rent
amount
RECOMMENDATION
It is recommended that the City Commission approve the first
amendment to the Limited Lease Agreement with Stetson for Conrad Park
BACKGROUNDIDISCUSSION
FIRST AMENDMENT TO THE LIMITED LEASE AGREEMENT
BETWEEN THE CITY OF DELAND AND
STETSON UNIVERSITY
This
Agreement
is made and entered into this
day of December
2011 by and between the City of DeLand a Florida municipal corporation
with
a
principal office address
Florida 32720
hereinafter
of 120 South
referred to
as
Florida
Lessor
Avenue DeLand
and Stetson University
Inc a Florida not for profit corporation with a principal office address of
421
North
Woodland
Boulevard
DeLand
Florida
32720
hereinafter
referred to as Lessee
Whereas
Agreement
Lease
Lessor
dated
and
November
Lessee
entered
into
a
Limited
Lease
16 1998 hereinafter referred to as the
for the purpose of leasing the baseball stadium and associated
facilities known as Melching Field at Conrad Park and
Whereas the Lease has an initial term of twenty 20 years and
Whereas the Lease requires Lessee to replace the scoreboard at
least one time during the initial term of the Lease and
Whereas Lessee desires to replace the existing scoreboard with a
much improved and more expensive scoreboard than that which currently
exists and
Whereas the Lease provides for the sharing by Lessee with Lessor
of revenues derived from concession sales outfield wall and scoreboard
advertising and
Whereas Lessor and Lessee desire to amend the lease to replace
the revenue sharing formulas with a set annual payment and
Whereas in consideration of Lessee
s investment in an improved
scoreboard and other obligations of Lessee relative to the scoreboard
Lessor has agreed to amend the lease as more particularly set forth below
Now Therefore
in
consideration
of the
mutual
covenants
and
conditions set forth herein and other good and valuable consideration
Lessor and Lessee hereby agree as follows
1
The foregoing preamble is incorporated herein and forms a
material part of this Agreement
2
Section 3 Term of the Lease is amended to extend the term of
the lease by two 2 years with an ending date of January 31 2021
3
Subsection 9 Revenue to be paid to Lessor of Section 8
Concession Rights of the Lease is hereby deleted in its entirety
4
of Section 9
Subsubsection 1 of Subsection A Outfield wall advertising
Advertising
of the Lease is
hereby
deleted in its
entirety
5
Subsection
B
Scoreboard
of
advertising
Section
Advertising of the Lease is hereby amended to read in full as follows
B
Scoreboard
Lessee shall
install and make fully
functional a new scoreboard in substantial conformity with the
rendering and specifications included in the attached Exhibit A
on
or
before
February 14
2012
Lessee
shall
have
the
exclusive right to negotiate and receive revenues for advertising
to be place on the scoreboard
Lessee shall be responsible for all maintenance repairs
and if necessary
replacement
of the scoreboard
In the event
that the scoreboard is destroyed or damaged in such a fashion
that the replacement or repair of the scoreboard is covered by
the insurance which Lessor has obtained then Lessee shall be
responsible for any deductible on such insurance policy up to a
maximum of 00
000
5
Lessee shall have full use and access to the use of the
scoreboard and any equipment necessary to fully utilize the
scoreboard when the Stadium is
being
used
by Lessor
Lessor
shall be responsible for any damage to the scoreboard which
results
from
s
Lessor
negligence
but
Lessor shall
not
be
9
responsible for the normal wear and tear which occurs through
use of the scoreboard by Lessor
6
Section 21 Insurance indemnity and hold harmless of the
Lease is hereby amended by providing that the Lessor
s duty to indemnify
Lessee
shall
be
limited
to
the
amount
of
00 per person
000
200
00 per occurrence or such other amounts as is set forth in
000
300
Section
28 Florida Statutes for the partial waiver of sovereign
768
immunity
7
Subsection D of Section 21 Insurance indemnity and hold
harmless of the Lease is hereby amended to read in full as follows
D
Lessor shall obtain on the most cost effective basis
which is practicable all peril insurance in an amount not less
than the replacement value of the scoreboard payable to the
City of DeLand with a deductible not to exceed 00
000
5
Such coverage shall be purchased as a separate policy or as a
separate rider to the coverage maintained on the Stadium
Lessee shall
reimburse
Lessor for the
premiums for such
coverage within thirty 30 days of receipt of an invoice for
same
from
Lessor which shall be collected by Lessor as
additional rent
8
A new subsection 5
A is hereby added to the Lease to read in
full as follows
A
In lieu of any revenue sharing Lessee shall pay
lessor as additional rent the sum of EIGHTEEN THOUSAND
AND 00
100 18
00 DOLLARS per year payable in one
000
installment due on or before June 30 of each year commencing
on February 01 2012 ie for the one year period beginning
February 01 2012 and ending on January 31 2013 a payment
of 18
00 shall be due on or before June 30 2012 and so
000
on for each year thereafter of the initial term of this Agreement
remainder of page intentionally left bland
signatures
on
following page
1
CITY OF DELAND LESSOR
STETSON UNIVERSITY INC LESSEE
BY
BY
Robert F
Apgar Mayor
Signature
Print name
Title
Attest
WITNESSES AS TO LESSEE
Julie A
Signature
Hennessy
City Clerk Auditor
Print name
Signature
Print name
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