CITY OF DELAND FLORIDA
REQUEST FOR COMMISSION ACTION
Janua
7 2013
Department Administrative Services
Subject Consideration re Lease Addendum
Suites 2 and 3 Florida Museum for
Attachments
X I Letter from Museum
Women Artists
Prepared by
Michael
Approved by
Grebosz Assistant
to the
City Manager
City Manager
SUMMARYHIGHLIGHT
In May of 2011 the City Commission approved a 5 year lease with the Florida Museum for
Women Artists for
use
of the first floor suites
Suites
2
3 of the Fish Building The Museum
business plan was to have an art business incubator and a cafegift shopworkshopmeeting area
in the two ground floor suites Rent for both ground floor suites is 41
830 per month Utilities
2
are pass through charges on monthly rent invoices
In October of 2011 the City Commission granted the request of the Museum to have the rent
insurance and utility costs on the ground floor deferred for November 2011 December 2011 and
January 2012 According to the Museum this deferral was needed in order for the Museum to
have proper startup funding for the ground floor The deferral was to be paid back in full by
September 30 2012
In October 2012 the Museum became delinquent by not paying back the deferral according to
the terms agreed upon one year prior for the ground floor lease In addition to not paying back on
the deferral post deferral rent payments for the ground floor lease and utility expenses for the
upstairs were also delinquent Currently the rented owed deferral plus post deferral rent stands
at 17
48 The utilities owed stands at 72
022
583 The total deficiency owed to the City is
8
20
606
25
In November 2012 staff contacted the Museum to ask for a repayment plan In December the
Museum made a partial payment and presented a formal letter requesting the City Commission
consider allowing the Museum to repay the remaining delinquent amount owed for by September
30 2013
STRATEGIC PLAN FOCUS AREAACTION STEP High Value Government
SUSTAINABILITY N
A
FISCAL IMPACT None if repayment is made
Page
2 of 2
January 7 2013
SUBJECT Consideration re Lease Addendum Florida Museum for Women Artists
RECOMMENDATION
It is recommended that the City Commission approve the request by the Florida Museum for
Women Artists for full repayment 25
20 by September 30 2013 with the following
606
stipulations
If repayment does not meet the minimum required amount set forth in this document
the partial repayment funds will be applied to any outstanding balance due for the
upstairs past due utilities
If the Museum is delinquent with any current rent payment utility payment or deferral
repayment staff has the ability to start the eviction process for the Museum on the
ground floor
BACKGROUND DISCUSSION
Repayment Schedule
Continue to pay in full current monthly rent payment of 41
830 for ground floor
2
lease
Continue to pay in full monthly utility pass through charges
In April July and September make a deferral repayment of 40
535 in addition to
8
current rent and utility charges 16
674 of this payment will be applied to past due rent
5
and 24
861 will be applied to past due utilities
2
Interest on the total deferred amount will not accrue so long as all payments are made on
time
I
FLORIDA MUSEUM FOR WOMEN ARTISTS
December 17 2012
Michael Pleus City Manager
120 South Florida Ave
Deland FI 32720
Dear Mr Pleus
Let me begin by saying the Board of Directors of the Florida Museum for Women Artists wishes
to express our deep appreciation to the City for its support since construction on this facility began in
2008 Over the past three years we have brought a variety of significant exhibits with corresponding
educational programs to the City of Deland through generous donors and membership support As a
new organization we were ineligible to apply for traditional grant funding however this year some
opportunities opened up which will help fund the coming year and we continue to pursue others
We recognize the need to correct current deficiencies in our lease commitments Your letters
dated November 30 2012 requested that we provide a plan of action
First we would like to share the following information on this past year
Our membership grew 21 percent with over 49 percent from Volusia County
Two leases were secured for the downstairs with two additional leases scheduled for February 2013
We partnered with the African American Museum of Art to bring the jazz festival to the downtown
Our Executive Director sits on two boards donating her time to positively impact the broader
cultural community and the local economy
Our public art curatorial services to the cities of DeBary and Orange City promote our mission as
well as promote cultural opportunities in downtown DeLand to increase visitors
Three board members were added Current board members are Margaret Hodge Margaret Lee
Judy Thompson Betty Johnson Theresa Brooks Anna Schrieffer and Jessie LovanoKerr
Second our Proposed Action Plan follows
Suite 1 Florida Museum for Women Artists With this letter we are providing a payment in the amount
of 8
000 We request that this money pay the most recently charged rent and utility for suites 2 and 3
and the balance applied to the money owed for suite 1
Suites 2 and 3 ground level suites It is the intent of the Board of Directors to pay the full amount owed
by September 30 2013 in no less than 3 payments April July September however due to the
inconsistency of revenue streams and the struggling economy the Board of Directors respectively
requests that should there be a need to extend this payment period the City allow the museum to pay
the balance owed by the end of our annual lease period March 2014 before taking further action
We appreciate your consideration of this request and continued support of this important museum
Sincerely
Margaret c nebiy odge
Preside t
orida Museum for Women Artists
Florida Museum for Women Artists
Phone 386 873
2976
100 N Woodland Blvd Suite 1 Del
and FI 32720
org
FloridaMuseumforWomenArtists
www