AMENDMENT OF LEASE TO ESTABLISH FEDERAL INTEREST - SANDERLIN PLAYGROUND AREAHEAD START CHILD DEVELOPMENT & FAMILY SERVICES, INC.
AMENDMENT OF LEASE
Sanderlin Playground Area
TO ESTABLISH FEDERAL INTEREST
This. Amendment, made this 1st day of May 2010, by and among the Head Start
Child Development & Family Services, Inc. (Tenant) and City of
Clearwater("Landlord"), for the property at 918 Palmetto Street, Clearwater, FL
33755, amends the lease between these parties entered into on February 1, 2006.
WHEREAS, City of Clearwater is the owner of a parcel of land located at 918 Palmetto Street,
Clearwater, FL 33755, and identified in the Pinellas County land records as 10-29-15-68346-000-0010;
WHEREAS, Head Start Child Development & Family Services, Inc. has agreed to lease an as is portion
of the above described premises from City of Clearwater (the "Leased Premises") for the purposes of
operating a Head Start and Early Head Start facility, and;
WHEREAS, Head Start Child Development & Family Services, Inc. is a delegate in the Federal Head
Start Program ("Head Start") (see 42 U.S.C. §§9831 et seq. 1301 et seq.) and;
WHEREAS, the Administration for Children and Families ("AC!"), a component of the United States
Department of Health and Human Services ("HHS") has approved an award of Head Start/Early Head
Start grant funds to Head Start Child Development & Family Services, Inc., and;
NOW in consideration of the covenants contained herein, it is agreed that the Parties shall amend the
Leases under the following terms and conditions:
1. Definitions. Under this Agreement, the following terms are defined as follows:
(a) Event of Default: The term "Event of Default" means an event of default under the Lease.
(b) Grantee: The term "Grantee/Delegate" means Pinellas Opportunity Council/Head Start
Child Development & Family Services, Inc. and/or an Interim Grantee and/or a
Replacement Grantee and their heirs, assignees, and successors under this Agreement
and the Lease.
(c) Lessor: The term "Lessor" means City of Clearwater and/or their heirs, assignees, and
successors under this Agreement and the Lease.
(d) Interim Grantee: The term "Interim Grantee" has the same meaning as it is defined in 45
CFR §1303.2.
(e) Replacement Grantee: The term "Replacement Grantee" refers to an entity designated by
ACF to serve as the Head Start grantee subsequent to the end of the role of Head Start
Child Development & Family Services. Inc. in that function.
(f) Parties: The term "Parties" shall refer to ACF, Pinellas Opportunity Council/Head Start
Child Development & Family Services, Inc. and City of Clearwater and their respective
heirs, successors, and assigns under this Agreement and the Loan Documents.
2. Head Start's Obligations
(a) Agrees not to sublease, assign, or otherwise transfer the leased property, or use the
property for any non-grant purpose, without the expressed written approval of the
responsible HHS official.
(b) Covenants and agrees to provide ACF with notice:
(1) Of any default under the Lease, on the date of the discovery of such default; and
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HEAD START CHILD DEVELOPMENT & FAMILY SERVICES, INC.
(1) Of any default under the Lease, on the date of the discovery of such default; and
(2) That the Lessor has notified the Grantee/Delegate of its intent to exercise the
remedy of cancellation, termination, and/or other remedies, on the day that the
grantee receives such notice from the Lessor.
3. Lessor's Promise To Notify ACF
The Lessor covenants and agrees to provide ACF with notices:
(a) Of any default by the grantee under the Lease, as soon as practicable after the day that
the Lessor first knows of such default; and
(b) That the Lessor intends to exercise its remedy of cancellation, termination, and/or any
other remedy, on the day that Lessor notifies the Grantee/Delegate that it intends to
exercise such remedy or remedies, or if the Lessor does not notify the Grantee/Delegate,
on the day that the Lessor decides to exercise any such remedy or remedies.
(c) That the Lessor intends to mortgage the Leased Premises, or that a lien or other
encumbrance affecting title has been attached to the Leased Premises.
4. Addresses For Notification To ACF
Whenever notice to ACF is required under this Agreement, the Lessor and the Grantee/Delegate
promise to provide both telephonic and written notification (by registered mail, return receipt
requested to the following ACF offices, or to their successors:
(a) The Office of Head Start
HHS/ACF Branch Office
Attn: Jeff Fredericks, HS Florida Branch Mgr
61 Forsyth Street, Suite 4M60
Atlanta, GA 30303-8909
404.562.3591
5. Contents Of Notification To ACF
The Lessor and the Grantee/Delegate covenant and agree to include the following information in
the written notice to ACF whenever such notice is required under this Agreement:
(a) The full names, addresses, and telephone numbers of the Lessor and the
Grantee/Delegate;
(b) The following statement, prominently displayed at the top of the first page of the notice:
"The Federal Interest in certain real property or equipment used for the Head Start
Program may be at risk. Immediately give this notice to the appropriate government
official."
(c) The date and the nature of the default and the manner in which the default may be cured
and/or an explanation of other circumstances that required the notice;
(d) In the event that the Lessor will be exercising the remedy of cancellation, termination
and/or other remedies, the date or expected date of the cancellation and/or exercise of
other remedies.
6. Grantee/Delegate's Promise To Notify Lessor Of Changes in ACF's Address
The Grant/Delegate covenants and agrees to give the Lessor written and telephonic notice of any
change of name, address, and/or telephone member of an ACF office listed ire Paragraph 4. The
Grantee covenants and agrees to give the Lessor written and telephonic notice of the name
address, and telephone number of the succeeding Federal office(s) to which notice must be
given.
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HEAD START CHILD DEVELOPMENT & FAMILY SERVICES, INC.
7. ACFs Rights In Event Of The Grantee's Default
(a) In the event a default occurs under the Lease, the parties agree that ACF may intervene
when it deems a default to have occurred under the Lease, and which default requires
ACF's intervention to avoid termination of the Lease by the Lessor, to ensure that the
default is cured by the Grantee/Delegate or another party designated by the responsible
ACF official and that the Lessor, or its assigns, shall accept the payment of money or
performance of any obligation by ACFs designee for the Grantee/Delegate, as if such
payment of money or performance had been made by the Grantee.
(b) Unless as otherwise specified in Paragraph 9 below, ACF shall have sixty (60) days from
the date of receipt of notice of the default that has been served in full compliance with
Paragraphs 3 through 5 above, in which to intervene to attempt to cure the default.
(c) In the event that the Grantee/Delegate defaults, is terminated, withdraws from the Head
Start grant or vacates the Lease before the end of the Lease term, ACF shall have the
right to designate a replacement for the Grantee for the balance of the Lease term,
subject to approval by the Lessor, which will not be withheld except for good reason as
provided for in 45 CFR §1309.
8. Substitution B ACF Shall Not Constitute An Event Of Default
Notwithstanding any other provisions of the Lease, the Parties agree that any substitution of
grantees by ACF shall not constitute an event of default under the Lease. No substitution of an
interim or Replacement Grantee/Delegate may be made until ACF has provided to Lessor the
identity of the interim or Replacement grantee, proof of its status to satisfy the standards of this-
Agreement, and such other information as required to permit Lessor to verify that the interim or
Replacement Grantee/Delegate. and the programs to be conducted by it at the Leased Premises,
conform to the standards required by this Agreement Lessor shall not withhold consent to the
interim or Replacement Grantee/Delegate if such entity and the programs to be conducted by it
conform to the standards of this Agreement. The Parties further expressly covenant and agree
that any such substitution by ACF made in accordance with this Agreement shall not trigger
termination of the Lease or any other remedy under it.
9. Special Period or Curing Certain Non-Moneta Defaults
With respect to non-monetary defaults that cannot with due diligence be cured within sixty (60)
days from the date of receipt of notice of default that has been served in full compliance with
Paragraphs 3 though 5 above if ACF promptly sets to cure the default within the sixty (60) day
period and thereafter continues to attempt to cure the default with due diligence, then ACF shall
have the right to such additional time as may be reasonably necessary to finish curing the default.
10. Delay Of Exercise Of Remedies Pending Cure
In the event of a default under the Lease, Lessor agrees that it shall not commence cancellation
or termination of the Lease or any other remedies that affect ownership or possession of the
Leased Premises until after ACF has been properly served, in full compliance with Paragraphs 3
through 5 above, with notice of default and intent to exercise remedies, and one of the following
events has occurred.
(a) The responsible ACF official informs the Lessor in writing that ACF has decided not to
cure the default; or
(b) ACF fails to timely cure the default within the period of time set forth in this Agreement
11. Federal Interest In the Property Leased
This is to notify all potential sellers, purchasers, transferors, transferees, mortgagees, creditors,
and any other persons or entities who have or may seek to obtain an interest of any kind in the
real property described in Paragraph 2, of the Federal government's beneficial ownership interest
and other interests ("Federal Interest") in said property, as defined in and/or regulated by the
Head Start Act, 42 U.S.C. §9831 et seq. 45 CFR Parts 74, 92, and 1309, and relevant decisions
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HEAD START CHILD DEVELOPMENT & FAMILY SERVICES, INC.
of the United States courts. The United States Department of Health and Human Services,
Administration for Children and Families ("HHS") has awarded grant funds to Pinellas Opportunity
Council/Head Start Child Development & Family Services Inc. ("grantee/delegate"), both Florida
not-for-profit 501c (3)'s, including, but not limited to grant number 04CH3069, grant funds expects
to be awarded further amounts in the future. The Federal Interest arises because Head Start
Child Development & Family Services Inc. has used the funds to acquire, and/or construct,
and/or improve said property and will have used such additional amounts awarded in the future
for that purpose. The Head Start grant incorporated conditions that include restrictions on the use
of the property and provide for a Federal Interest in the property.
In accordance with the terms of the Federal grant, the Head Start Act, 42 U.S.C. §9831 et 45
CFR Parts 74, 92, and 1309, and relevant decisions of the United States courts, the restrictions
on the property include, among others, the following:
• The property may not be used for any purpose inconsistent with that authorized by
the Head Start Act and applicable regulations.
• The property may not be encumbered, used as collateral, sold or otherwise
transferred to another party without the written permission of the responsible HHS
official.
• The grant conditions and requirements cannot be altered or nullified through a
transfer of ownership.
The restrictions are subject to the City of Clearwater Charter provision 2.01 (d)(5)(viii) which
states, "All leases of municipal real property shall contain recapture and reverter clauses."
Further information regarding the Federal Interest in the property described in this Notice can be
obtained from the Administration for Children and Families.
12. Binding On Heirs And Assigns
This Agreement shall be binding upon and inure to the benefit of the respective successors and
assigns of each of the parties hereto, but does not otherwise create, and shall not be constructed
as creating, any rights enforceable by any person not a party to this Agreement.
13. Assumption
Any Interim or Replacement Grantee must, as a precondition to its occupancy of the Leased
Premises, execute an Assumption Agreement.
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HEAD START CHILD DEVELOPMENT & FAMILY SERVICES, INC.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement pursuant to
the authority duly given them:
ART CHILD
B
Witness:
,IIA. J
Date: this Ada
2
PINELLAS OPPORTUNITY COUNCIL, INC.
BY:
Witness:
dR W. ZECKER, 99 O
this day of , 2
Ilord's iness Name Here
By:
Witness:
Authorized Sig
Date: this day of
Y SERVICES. INC.
A HIIINZFEN, CEO
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RE: HEAD START CHILD DEVELOPMENT & FAMILY SERVICES, INC.
AMENDMENT OF LEASE
Sanderlin Playground Area
TO ESTABLISH FEDERAL INTEREST
IN WITNESS WHEREOF, the undersigned Landlord has caused these presents to be
executed in its name by its City Manger, countersigned by its Mayor, its seal to be
hereunto affixed, attested by its City Clerk this da day of T ,
2010.
Countersigned:
CITY OF CLEARWATER, FLORIDA
By: .GIU?d•YY?
Frank V. Hibbard, Mayor
as to form:
Laura Mahony, Assistant City Attdrney
William B. Horne, II, City Manager
Attest:
P Cynthia E. Goudeau,
oF rHF/I
CIO AM
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