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05/30/2017 - SpecialTuesday, May 30, 2017 9:00 AM City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Council Chambers Community Redevelopment Agency Meeting Agenda Special CRA Meeting May 30, 2017Community Redevelopment Agency Meeting Agenda 1. Call To Order 2. Approval of Minutes 2.1 Approve the minutes of the May 1, 2017 CRA Meeting as submitted in written summation by the City Clerk. 3. Citizens to be Heard Regarding Items Not on the Agenda 4. New Business Items 4.1 Amend the operating budget for the Community Redevelopment Agency (CRA) for fiscal year 2016-2017, approve budget amendments to the CRA Capital Improvement Project Fund and adopt Resolution 17-02. 4.2 Approve an agreement for loan and exhibition of artwork and management of a gallery space with Professional Association of Visual Artists (PAVA) for a term of six months, with an option to renew for an additional six months, and authorize the appropriate officials to execute same. 4.3 Approve a lease agreement between the Community Redevelopment Agency (CRA) and Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company, for the premises located at 331 Cleveland Street No. 2502, and authorize the appropriate officials to execute same. 5. Adjourn Page 2 City of Clearwater Printed on 5/22/2017 Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#17-3555 Agenda Date: 5/30/2017 Status: Agenda ReadyVersion: 1 File Type: MinutesIn Control: Community Redevelopment Agency Agenda Number: 2.1 SUBJECT/RECOMMENDATION: Approve the minutes of the May 1, 2017 CRA Meeting as submitted in written summation by the City Clerk. SUMMARY: APPROPRIATION CODE AND AMOUNT: USE OF RESERVE FUNDS: Page 1 City of Clearwater Printed on 5/22/2017 Community Redevelopment Agency Meeting Minutes May 1, 2017 Page 1 City of Clearwater City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 Meeting Minutes Monday, May 1, 2017 1:00 PM City Hall Chambers Community Redevelopment Agency Community Redevelopment Agency Meeting Minutes May 1, 2017 Page 2 City of Clearwater Roll Call Present 4 - Chair George N. Cretekos, Trustee Bob Cundiff, Trustee Hoyt Hamilton, and Trustee Bill Jonson Absent 1 - Trustee Doreen Caudell Also Presen t – W illiam B. Ho rne – City Manager, Jill Silverboard – Deputy City Mana ger, Pamela K. Akin – City Attorney, Rosem ar ie Ca ll – City Clerk, Seth Taylor - CRA Executive Director, and Nicole Spra gue – Offic ial Re cords and Le gis lati ve Ser vices Coordin ator To pro vi de continui ty fo r research, items are li sted in agend a order altho ugh not necessarily disc ussed in that order. Draft 1. Call To Order – Chair Cretekos The meeting was called to order at 1:01 p.m. at City Hall. 2. Approval of Minutes 2.1 Approve the minutes of the February 27, 2017 CRA Special Meeting as submitted in written summation by the City Clerk. Trustee Cundiff moved to approve the minutes of the February 27, 2017 CRA Special Meeting as submitted in written summation by the City Clerk. The motion was duly seconded and carried unanimously. 3. Citizens to be Heard Regarding Items Not on the Agenda – None. 4. New Business Items 4.1 Approve an Amended Agreement to include insurance requirements between the Community Redevelopment Agency and the Florida Business Incubator, Inc. (formerly TAFFIE, LLC), a Florida corporation, and authorize the appropriate officials to execute same. Amended agreement includes provision for Commercial General Liability insurance coverage and other insurance provisions; additional indemnification and liability provisions; and contact information change for notices to parties. In response to a question, Economic Development and Housing Director Denise Sanderson said the contract approved last October did not Community Redevelopment Agency Meeting Minutes May 1, 2017 Page 3 City of Clearwater include the insurance provisions. Trustee Hamilton moved to approve an Amended Agreement to include insurance requirements between the Community Redevelopment Agency and the Florida Business Incubator, Inc. (formerly TAFFIE, LLC), a Florida corporation, and authorize the appropriate officials to execute same. The motion was duly seconded and carried unanimously. 4.2 Approve New Logo for Downtown Clearwater The Downtown Clearwater logo development process was a joint effort coordinated by Sparxoo, digital marketing and website designer, and a committee that included city staff and downtown partners. Logo application will included marketing materials, new Downtown Clearwater website, banners and social media. In response to questions, CRA Executive Director Seth Taylor said the new logo does not include a tag line, only Downtown Clearwater. The new logo will be used on banners; a sample banner is not available yet. The existing banners will be replaced with the new logo. Trustee Jonson moved to approve New Logo for Downtown Clearwater. The motion was duly seconded and carried unanimously. CRA Executive Director Seth Taylor said staff is working with Legal to create a Building Improvement Program and a CRA Opportunity Fund. The CRA Opportunity Fund will be used to support catalyst projects in the Downtown. Staff anticipates providing further details at a special CRA meeting within the next 6 weeks. Mr. Taylor said the Project for Public Spaces consulting team is wrapping up their final recommendations for the Mercado; staff anticipates the final report to be presented soon. As part of the Imagine Clearwater initiative, CRA staff is working with Planning and Library staffs on a Second Century storefront at the corner of Osceola Avenue and Cleveland Street. Mr. Taylor said the storefront will be open to the public and will provide information related to the City's major planning initiatives, such as Imagine Clearwater. Community Redevelopment Agency Meeting Minutes May 1, 2017 Page 4 City of Clearwater 5. Adjourn The meeting adjourned at 1:10 p.m. Chair Community Redevelopment Agency Attest City Clerk Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#17-3545 Agenda Date: 5/30/2017 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.1 SUBJECT/RECOMMENDATION: Amend the operating budget for the Community Redevelopment Agency (CRA) for fiscal year 2016-2017, approve budget amendments to the CRA Capital Improvement Project Fund and adopt Resolution 17-02. SUMMARY: The amended capital budget reflects shifting downtown redevelopment priorities for the Community Redevelopment Area, including business attraction, economic development incentives, placemaking, branding and marketing, among other priorities. APPROPRIATION CODE AND AMOUNT: N/A Page 1 City of Clearwater Printed on 5/22/2017 Project Amendments Mid Year Project Budget Proposed Amended Project Open Available Amend #Description 10/1/2016 Amendments Budget To Date Encumbr Balance Status Ref 388-92839 Downtown Intermodal 46,078 46,078 0 46,078 388-94714 Downtown Redevelopment 2,788,056 (177,126) 2,610,930 1,525,535 1,085,395 1 388-94765 IMR Development 74,271 (69,611) 4,660 4,660 0 C 2 388-94847 Clearwater Centre-1100 Cleveland 620,000 (114,083) 505,917 505,917 0 C 3 388-94849 Downtown Gateway 3,459,839 (108,085) 3,351,754 1,755,679 1,596,075 4 388-94851 Affordable Housing 250,000 (250,000) 0 0 0 C 5 388-94852 Retail Attraction/Assistance 435,000 (85,613) 349,387 327,550 21,837 0 C 6 388-94853 Downtown Branding & Marketing 281,000 (73,857) 207,143 107,532 65,000 34,611 7 388-94856 Marriott Residence Inn 296,391 (68,774) 227,617 227,617 0 C 8 388-94859 Station Square Development 460,000 (460,000) 0 0 0 C 9 388-94862 Car Pro Site 355,000 355,000 329,296 19,052 6,652 388-94866 Economy Inn Debt 1,753,000 1,753,000 1,338,621 414,379 388-94868 Economy Inn Demolition 254,473 (37,279) 217,194 217,194 0 C 10 388-94872 Technology District Incentives 325,000 (253,250) 71,750 46,750 25,000 0 C 11 388-94884 Property Acquisition 1356 Park Street 65,000 (3,417) 61,584 61,584 0 C 12 388-94885 ULI Implementation 1,000,000 1,000,000 415,130 14,750 570,120 388-94887 Library Activation 199,870 199,870 134,216 65,654 388-94889 Placemaking Activities 60,000 48,342 108,342 52,085 56,257 13 388-94893 Opportunity Fund (Business Attraction)- 1,601,674 1,601,674 0 1,601,674 14 388-99963 Economic Development Incentive 203,861 (131,096) 72,765 72,765 0 C 15 388-99968 Downtown Beautification 187,676 (26,755) 160,921 60,921 99,999 16 388-99979 Storefront Improvement Program 282,165 (67,177) 214,988 114,989 100,000 17 388-99881 Clearwater Auto Site 187,659 (177,685) 9,975 9,975 0 C 18 388-99986 Mediterranean Village (The Nolan)259,538 536,893 796,431 96,431 700,000 19 Total 13,843,876 83,102 13,926,978 7,404,445 145,639 6,376,894 Budget Amendments to Projects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 To record a transfer of $26,755.12 to 388-94893, Opportunity Fund (Business Attraction). To record a transfer of $67,176.91 to 388-94893, Opportunity Fund (Business Attraction). To record a transfer of $177,684.50 to 388-99986, Mediterranean Village (The Nolan). (close project) To record a net transfer of $536,893.46 representing transfers of $105,792.46 from 388-94849, Downtown Gateway; $250,000 from 388-94851, Affordable Housing; $3,416.50 from 388-94884, Property Acquisition 1356 Park Street; and $177,684.50 from 388-99881, Clearwater Auto Site. To record a transfer of $85,612.96 to 388-94893, Opportunity Fund (Business Attraction). (close project) To record a transfer of $68,774.12 to 388-94893, Opportunity Fund (Business Attraction). (close project) To record a net transfer of $460,000 representing transfers of $48,342 to 94889, Placemaking Activities; and $411,658, to 388-94893, Opportunity Fund (Business Attraction). (close project) To record a transfer of $73,857.10 to 388-94893, Opportunity Fund (Business Attraction). To record a transfer of $131,095.72 to 388-94893, Opportunity Fund (Business Attraction). (close project) To record a transfer of $3,416.50 to 388-99986, Mediterranean Village (The Nolan). (close project) To record a transfer of $48,342 from 388-94859, Station Square Development. To establish the project and record a budget increase of $1,601,674 representing transfers of $262,521 from 388-94714, Downtown Redevelopment; $69,610.70 from 388-94765, IMR Development; $114,083.12 from 388-94847, Clearwater Center - 1100 Cleveland; $85,612.96 from 388-94852, Retail Attraction/Assistance; $73,857.10 from 388-94853, Downtown Branding and Marketing; $68,774.12 from 388-94856, Marriott Residence Inn; $411,658 from 388-94859, Station Square Development; $37,279.17 from 388-94868, Economy Inn Demolition; $253,250.08 from 388-94872, Technology District Incentives; $131,095.72 from 388-99963, Economic Development Incentives; $26,755.12 from 388-99968, Downtown Beautification; and $67,176.91, Storefront Improvement Program. To record a transfer of $37,279.17 to 388-94893, Opportunity Fund (Business Attraction). (close project) Community Redevelopment Agency Capital Improvement Project Fund Mid Year Review For the Six Month Period of October 1, 2016 - March 31, 2017 To increase the budget by $85,395.02 representing prior year excess cash to bring the budget in line with actual cash received in the project. To record a transfer of $262,521 to 388-94893, Opportunity Fund (Business Attraction). Actual Expenditures To record a transfer of $69,610.70 to 388-94893, Opportunity Fund (Business Attraction). (close project) To record a transfer of $253,250.08 to 388-94893, Opportunity Fund (Business Attraction). (close project) To record a transfer of $250,000 to 388-99986, Mediterranean Village (The Nolan). (close project) To record a transfer of $114,083.12 to 388-9489, Opportunity Fund (Business Attraction). (close project) To reduce the budgeted transfer by $2,293 due to the reduction in County tax increment receipts in the operating fund for the fiscal year; and to record a transfer of $105,792.46 to 388-99986, Mediterranean Village (The Nolan). 2016/17 Revenue/Mid Year Adopted Expenditures Proposed Amended Amend Budget To Date Amendments Budget Ref Revenues & Transfers In Tax Increment Financing Revenues 338930 Pinellas County 1,042,546 990,414 (1,172) 1,041,374 1 381115 City of Clearwater 1,006,484 1,005,386 (1,121) 1,005,363 1 381116 Downtown Development Board 188,500 188,293 (211) 188,289 1 Total TIF Revenues 2,237,530 2,184,093 (2,504) 2,235,026 Other Revenues 361101 Interest Earnings 50,000 46,558 50,000 369901 Other General Revenue - - - - Transfers In 381782 DDB Administration 66,950 33,475 - 66,950 Total Revenues & Transfers In 2,354,480 2,264,126 (2,504) 2,351,976 Expenditures & Transfers Out Operating Expenditures 530100 Professional Services 60,000 18,631 60,000 530300 Other Contractual Services 10,000 - 10,000 540300 Telephone Variable 1,250 961 1,250 541000 Information Technology - fixed charge 11,790 5,895 11,790 541600 Building & Maintenance - variable charge 1,000 750 1,000 542200 Electric-Utility Charges 1,000 63 1,000 542500 Postage 1,000 7 1,000 543100 Advertising 2,500 - 2,500 543200 Other Promotional Activities 1,500 791 1,500 543400 Printing & Binding 3,500 10 3,500 543600 Taxes - 840 - 544100 Equipment Rental 2,500 470 2,500 547100 Uniforms 500 - 500 547200 Employee Expense-Travel 7,000 1,019 7,000 547300 Mileage Reimbursement 1,500 - 1,500 548000 Other Services 4,000 696 4,000 550100 Office Supplies 3,000 302 3,000 550400 Operating Supplies - 55 - 557100 Memberships and Subscriptions 2,500 175 2,500 557300 Training and Reference 6,000 62 6,000 561400 Appraisal Fees - - - 581000 Payments to Other Agencies-DDB 188,500 - (211) 188,289 1 581000 Payments to Other Agencies - Blast Friday 100,000 100,000 100,000 582000 Aid to Private Organizations - - - Total Operating Expenditures 409,040 130,727 (211) 408,829 Transfers Out 590200 General Fund- Administrative 395,141 197,571 395,141 590800 Library Activation Project (94887)100,270 100,270 100,270 590800 Downtown Gateway Project (94849)171,402 171,402 (2,293) 169,109 2 590800 Downtown Beautification (99968)25,000 25,000 25,000 590800 Economy Inn Site Redevelopment (94868)20,000 20,000 20,000 590800 Restricted County TIF Funds 1,042,546 1,042,546 1,042,546 590800 Façade Improvement Grant Fund (99979)20,000 20,000 20,000 590800 Downtown Redevelopment (94714)1,081 1,081 1,081 590800 CarPro Site (94862)5,000 5,000 5,000 590800 Downtown Marketing and Branding (94853)80,000 80,000 80,000 590800 Technology District Incentives (94853)25,000 25,000 25,000 590800 Placemaking Activities (94889)60,000 60,000 60,000 Total Transfers Out 1,945,440 1,747,870 (2,293) 1,943,147 Total Expenditures & Transfers Out 2,354,480 1,878,597 (2,504) 2,351,976 Excess of Revenues & Transfers In Over Expenditures & Transfers Out - - - Budget Amendments to Operating Budget 1 2 Community Redevelopment Agency Mid Year Review For the Six Month Period of October 1, 2016 - March 31, 2017 To adjust budgeted revenue to actual TIF receipts, and adjust the related payment to the DDB to match actual receipts. To reduce the budget transfer to the Downtown Gateway Project (94849)representing $1,172 in Restricted County TIF funds, and $1,121 in City TIF funds to compensate for the loss in tax increment financing. Resolution No. 17- 02 RESOLUTION NO. 17-02 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA, ADOPTING THE CRA FY 2016/2017 AMENDMENTS TO ANNUAL OPERATING BUDGET AND CAPITAL BUDGETS; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Community Redevelopment Agency (CRA) annual budget requirements have been clarified and Section 189.418(3), of the Florida Statutes requires that CRA’s adopt their annual budgets by resolution; now, therefore, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF CLEARWATER, FLORIDA: Section 1. Adopt the FY2016/17 AMENDMENTS TO CRA Operating and Capital Budgets as outlined on Exhibit A. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this _______ day of _____________, 2017. ____________________________ George N. Cretekos Mayor Approved as to form: Attest: __________________________ _____________________________ Pamela K. Akin Rosemarie Call City Attorney City Clerk Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#17-3532 Agenda Date: 5/30/2017 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.2 SUBJECT/RECOMMENDATION: Approve an agreement for loan and exhibition of artwork and management of a gallery space with Professional Association of Visual Artists (PAVA) for a term of six months, with an option to renew for an additional six months, and authorize the appropriate officials to execute same. SUMMARY: The City Community Redevelopment Agency (CRA) wishes to contract with PAVA to program and manage the property located at 331 Cleveland Street for the purposes of a studio, gallery, public assembly space, and consignment shop. PAVA and its members will staff the gallery at times and dates coordinated with activities in Downtown Clearwater. These activities include, but are not limited to: Blast Friday, Pierce Street Market, events at the Capitol Theatre, and other significant downtown events. APPROPRIATION CODE AND AMOUNT: Placemaking: 388-94889; not to exceed $15,000. Page 1 City of Clearwater Printed on 5/22/2017 PUBLIC GALLERY MANAGEMENT AGREEMENT This agreement for loan and exhibition of artwork, and management of a gallery space, made and entered into on this _____ day of ____________, 20____ by and between the Professional Association of Visual Artists (hereafter called “PAVA”) whose address is PO Box 2665, Dunedin, FL 34697 and the City of Clearwater, Florida (hereafter called the “City”), a municipal corporation of the State of Florida, located at 112 South Osceola Avenue, Clearwater, FL 33756. Whereas the City wishes to contract with PAVA to program and manage the property located at 331 Cleveland Street, No. C, Clearwater, FL 33756 for the purposes of a studio, gallery, public assembly space, and consignment shop; and Whereas PAVA wishes to occupy, program, and manage the property located at 331 Cleveland Street No. C for use as an artist studio, gallery, public assembly space, and consignment shop. Now, therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, it is hereby agreed by and between the parties as follows: 1. RECITALS: 1.1 The conditions set forth in this agreementapply solely to the property located at 331 Cleveland Street No. C and the agreement between PAVA and the City of Clearwater and cannot be altered, changed, waived or otherwise amended except as agreed upon in writing by both parties. 2. TERM: 2.1 The City hereby agrees to contract with PAVA for a period of six (6) months, commencing on ______, 2017 and terminating on ______, 2017. 3. PAVA RESPONSIBILITIES: 3.1 PAVA and its members are responsible for the management and staffing of the public gallery space including, but not limited to the following times and details: a. Wednesday – Friday (11:00am – 5:30pm) and Saturday (11:00am – 4:00pm). b. As necessary, and based upon public interest, gallery hours may be expanded by a mutual agreement of both parties. c. Evening hours as further described in 3.3 3.2 PAVA will provide a business manager and an assistant business manager to handle all administrative functions necessary for the responsible management and programming of the public gallery space. a. The business manager, and/or the assistant business manager, will serve as the liaison for all coordination and communications with City staff. b. The business manager and assistance business manager will coordinate with the City in the initial setup and build-out of the public gallery space. c. Should the need arise, the business manager, and/or the assistant business manager, will coordinate with the necessary security personnel (City police department, building security officer) to ensure the safety of the public gallery space, its occupants, and the materials contained within. 3.3 PAVA and its members will staff the gallery at times and dates coordinated with activities in the Downtown and Cleveland Street District. These activities include, but are not limited to: Blast Friday; Pierce Street Market or other similar market; significant events at the Capitol Theatre; other significant events in the Downtown and Cleveland Street District. 3.4 PAVA and its members are encouraged to participate and integrate with activities in the Downtown and Cleveland Street District through direct participation, support of marketing and advertising, and attendance or performances at such events. 3.5 PAVA and its members will coordinate 1-2 events per month, to be dictated by season, attendance, and availability of resources. PAVA will also coordinate with the City, CRA and other non-profit and community groups to provide assembly and meeting space for various events and activities. a. Events may include, but are not limited to: Paint-ins or plein aire events; demonstrations and discussions (Lunch and Learn); special exhibitions and shows for member artists; lecture series; and other events that coordinate with themes and programs of other City functions in the Downtown and Cleveland Street District. 3.6 PAVA and its members will maintain a record of metrics such as number of programs and attendance. These metrics will be provided, at request, to the City as regular management updates. 4. CITY RESPONSIBILITIES: 4.1 The City will work with the property owner to make necessary renovations and/or improvements to the public gallery space to ensure that it is ready for occupation. 4.2 The City will provide PAVA and its members access and use of the public gallery space free of charge. 4.3 The City will provide a suitable artwork hanging system for displaying 2-dimensional and wall art. The City and PAVA will agree to arrange for other display methods as needs dictate. 4.4 The City and PAVA will develop an agreed-upon system of metrics of success for evaluating the performance of PAVA as the public gallery space managers. These metrics will be controllable items such as, but not limited to: number of exhibitions per month, social media posts, and number of programs or activities per month. 4.5 The City and PAVA will have regular meetings to assess the progress and success of the programs and operation of the public gallery space. 4.6 The City will work with PAVA and its members to create exterior signage for the public gallery space. 4.7 The City will promote the public gallery space and its programs through normal City communications, such as www.myclearwater.com; the City’s Facebook page; internal staff communications; flyers; and messages to partner organizations. 4.8 In the event that the public gallery space must vacate its location prior to the expiration of this agreement, the City will notify PAVA in an appropriate duration of time, no less than 30 days if feasible, and will make a good faith effort to relocate PAVA and its members to another location. 5. PUBLIC GALLERY SPACE MANAGEMENT 5.1 PAVA and its members will be responsible for providing program coordinators, artists, and artists in residence with all necessary materials such as tables, shelving, and cabinetry essential to facilitate an active work space. a. Artists will provide their own art supplies and any special materials such as lighting, easels, chairs, and other objects specific and individualized to the artist’s needs. 5.2 PAVA and its members, and artists in residence, will maintain the public gallery space in a clean and orderly manner. 5.3 Only 2-dimensional work and certain pre-approved 3-dimensional work, such as, but not limited to: painting, drawing, photography, etching, watercolor and other similar media will be produced in the public gallery space. Any materials leaving a residue such as ceramics and pottery, sculpting, and other techniques involving dangerous materials such as welding, acid etching, and open flames, are not permitted in the public gallery space. 5.4 PAVA and its members will promote the public gallery space and its programs through their membership website, social media profiles, and community connections. 5.5 PAVA will be responsible for their portion of utilities in a percentage agreed upon by both parties. 5.6 PAVA will use the space as a regular assembly area for their membership meetings and activities. 6. SALES: 6.1 PAVA and its members will maintain a constant and revolving exhibition of artwork at the public gallery space. All artwork will be available for sale. The City will take no commission on sales made in the public gallery space. PAVA arts member shall be solely responsible for payment, if any, of sales taxes due. 6.2 Sales are to be conducted by invoice or through direct electronic sale (Square, credit card, etc). No cash is to be kept on the premises at any time. 6.3 PAVA and its members will provide an ongoing gallery inventory and will be responsible for maintaining records for all sales and processing for all artwork sold in the public gallery space. 6.4 PAVA and its members will, upon request, submit an accounting of all sales and financial activities to the City. 7. INSURANCE: 7.1 PAVA and its members, acknowledge that the City will not provide any insurance coverage for the items on display while they are located in the public gallery space. The exhibiting artists will waive any and all subrogation rights against the City for any damage to, destruction of, theft of, loss of, or other casualty to the times while they are located on display within the public gallery space. 7.2 PAVA will provide proof of general liability insurance coverage in the amount of $1,000,000 per occurrence and list the following entities as additionally insured: City of Clearwater; Clearwater Community Revitalization Agency; Waters Edge; and Daniels Ikajevs, property owner. 8. INDEMNIFICATION: 8.1 PAVA and its members agree to indemnify and hold free and harmless, assume legal liability for and defend the City of Clearwater and its officers, employees, agents, and servants, whether they are current or former, from and against any and all actions, claims, liabilities, assertions of liability, losses, costs and expenses, in law or in equity, including but not limited to attorney’s fees at trial and appellate levels, reasonable investigative and discovery costs, court costs, or claims for bodily injury or death of persons and for loss of or damage to property, except as provided for herein, of every kind and nature whatsoever, which in any manner directly or indirectly may arise or be alleged to have arisen, from the installation or display of the loaned items or as a result of the duties and obligations as required by this exhibition agreement that which has resulted or alleged to have resulted from the negligent acts or omissions or other wrongful conduct of or the infringement of any copyright by the lender. 9. DEFAULT: 9.1 Failure or refusal of PAVA or its members to perform or do any act herein required shall constitute a default. In the event of a default, in addition to any other remedy available to the City, the City, upon thirty (30) days written notice, may terminate this agreement. Such termination does not waive any other legal remedies available to the City. In witness thereof, the parties hereto have caused this Public Gallery Management Agreement to be executed on the date first above written. CITY OF CLEARWATER, FLORIDA ____________________________________ PAVA representative ____________________________________ CITY ____________________________________ Witness Cover Memo City of Clearwater City Hall 112 S. Osceola Avenue Clearwater, FL 33756 File Number: ID#17-3533 Agenda Date: 5/30/2017 Status: Agenda ReadyVersion: 1 File Type: Action ItemIn Control: Community Redevelopment Agency Agenda Number: 4.3 SUBJECT/RECOMMENDATION: Approve a lease agreement between the Community Redevelopment Agency (CRA) and Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company, for the premises located at 331 Cleveland Street No. 2502, and authorize the appropriate officials to execute same. SUMMARY: The CRA will lease approximately 2,000 square feet of first -floor retail space located in the ground floor of Water ’s Edge Condominiums to serve as an Artist Workshop /Exhibit Space. The lease agreement between the CRA and Water ’s Edge Commercial Group, LLC will commence on June 1, 2017, for a term of six months, in the amount of $1,425.24 per month. The CRA will be sharing the retail space with the Pinellas Association of Visual Artists (PAVA) for a collaborative, coordinated initiative to foster public art and engagement in Downtown . The CRA will utilize half of the leased space to house a 2nd Century Clearwater exhibit. The exhibit will feature the Imagine Clearwater - Bluff Master Plan and showcase additional 2nd Century Clearwater (formerly referred to as ULI) priority projects. APPROPRIATION CODE AND AMOUNT: Funding for this agreement to be provided by CRA funding code 388-94885 ULI Implementation. As of May 11, 2017, the balance in this fund is $570,120. Page 1 City of Clearwater Printed on 5/22/2017 Water’s Edge/CRA Landlord Lease v.1 Tenant 1 Lease BASIC LEASE PROVISIONS RETAIL CENTER: All property real, personal or mixed, owned by Landlord as of this date, at the site in Pinellas County, Florida as shown on Exhibit “A” (the “Retail Center”), of which Tenant’s Premises are a part. LANDLORD: Water’s Edge Commercial Group, LLC, a Florida Limited Liability Company ADDRESS: 331 Cleveland Street No. 2502 Clearwater, FL 33755 TENANT: City of Clearwater Community Redevelopment Agency TRADE NAME: CRA ADDRESS: 112 South Osceola Ave. Clearwater, Florida 33756 CONTACT: Seth Taylor, CRA Director TELEPHONE: (727) 562-4072 GUARANTOR: N/A ADDRESS: N/A TELEPHONE: N/A Water’s Edge/CRA Landlord Lease v.1 Tenant 2 PREMISES: The approximate location of the premises is shown on Exhibit “A”. 331 Cleveland Street No. C (a/k/a commercial space A), Clearwater, Florida 33755. AREA: Approximately 1,998 square feet EFFECTIVE DATE: The date on which the last of the Landlord or Tenant executes this Lease. LEASE TERM: Six (6) months from June 1, 2017. EXPIRATION: November 30, 2017, with an option to renew Lease for two (2) additional six (6) month terms. RENT COMMENCEMENT DATE: June 1, 2017 (“Rent Commencement Date”) MINIMUM BASE RENT PER ANNUM: $15,984.00 + 7% Sales Tax The Minimum Base Rent for square footage base rent (the “Minimum Base Rent” or “SFT Base Rent”) per rentable square foot for the Premises annualized will be $8.00 per SFT including 7 % sales tax. The term of the lease is 6 months, with prorated Minimum Base Rent, of $8,551.44 for the term for the amount of $1, 425.24 per month inclusive of sales tax. The first term will be automatically renewed for an additional six (6) month term unless cancelled in writing by Tenant or Landlord at least thirty days (30) before expiration of the initial term. The rent for the first renewal lease term will be as follows: Minimum Base Rent amount of $1, 425.24 per month. The second term will be automatically renewed for an additional six (6) months,under the same terms unless cancelled in writing by the Tenant or Landlord at least thirty (30) days before expiration of the first renewal lease term. There shall be no prepayment penalty if Tenant chooses to pay rent in advance. Water’s Edge/CRA Landlord Lease v.1 Tenant 3 Rent shall be due on the 1st day of each month and shall be considered late if not paid by the 7th day of each month. Late payments will be assessed a $45.00 late fee plus an additional $5.00 per day for each day past the 15thday of each month. Rent shall be paid directly to Landlord via direct deposit or check. TENANT’S USE: Subject to the restrictions set forth herein, Tenant shall be permitted to use the Premises only for the following purposes: City/CRA exhibit space, office and meeting space, art studio, art classes and demonstrations, art gallery and/or art related event space. The Tenants use is further subject to the Declaration of Condominium and the Rules and regulations of the Condominium Association and the Landlord, from time to time. Landland warrants that the proposed uses are permitted under the Declaration of Condominium and the Rules and regulations of the Condominium Association and that any consent or permissions required have been obtained by Landlord. SECURITY DEPOSIT: Tenant shall pay to Landlord a fully-refundable “Security Depos- it” in the amount of Two Thousand and No/100 Dollars ($2,000.00), which shall be paid upon execution of this Lease. The Security Deposit shall be held by Landlord until a Certificate of Occupancy is issued for Tenant’s business. The Security De- posit shall be held by Landlord as a Tenant’s Security Deposit until termination of the Lease period as hereinafter set forth. If Tenant shall default in any fashion under this Lease, Tenant shall forfeit to Landlord the balance of any Security Deposit. AMOUNT PAYABLE UPON EXECUTION OF LEASE: $ 2,000.00 SECURITY DEPOSIT + 1 month rent of $1,425.24 LEASE Water’s Edge/CRA Landlord Lease v.1 Tenant 4 THIS LEASE, made as of this 1ST day of June, 2017 by and between, WATER’S EDGE COMMERCIAL GROUP, LLC, a Florida limited liability company, or its successors or as- signs, hereinafter called “Landlord”, and CITY OF CLEARWATER COMMUNITY RE- DEVELOPMENT AGENCY, hereinafter collectively called “Tenant”. W I T N E S S E T H: Landlord hereby leases to Tenant, upon the terms and conditions hereinafter set forth, the building space to be constructed (hereinafter called “Premises”) as shown on Exhibit “A” at- tached. The Premises shall consist of approximately Two Thousand (2000) square feet. The Premises is located in Pinellas County, Florida. 1. CONSTRUCTION. All improvements in the Premises or elsewhere in this Lease, as shown on Exhibit “B” including, but not limited to any additional plumbing, electrical systems and equipment, or improvements required to be completed for the operation of Tenant’s business, will be installed by Landlord at Landlord’s cost and expense. All such improvements shall be performed: (a) at the sole cost of Landlord; (b) by contractors, subcontractors and workmen previously approved in writing by Landlord; (c) in a good and workmanlike manner; (d) in accordance with the drawings and specifications previously approved in writing by Lan d- lord; (e) in accordance with all applicable Federal, State, County and Municipal laws, regula- tions, codes and permits (“Applicable Laws”); (f) subject to the reasonable regulations, supervi- sion, control and inspection of Landlord. If any work which is required to be performed by Ten- ant pursuant to the terms of this Lease is actually performed by the Landlord on behalf of Tenant, then Tenant shall be required to pay Landlord, within thirty (30) days of receipt of invoices from Landlord, as additional rent, an amount equal to the costs of Landlord performing such work, together with an administration fee equal to fifteen percent (15%) of such costs. Tenant shall be solely responsible to procure and pay for the approvals, licenses, building permits, certificates of occupancy, and additional impact fees relating to Tenant’s use of the Premises that are in excess of those fees that are assessed for a standard retail operation in the Premises, and all licenses and other governmental approvals required to occupy the Premises or operate its business. Notwith- standing anything contained herein to the contrary, neither Tenant nor Tenant’s contractor shall perform any work which includes exterior excavation (roof penetration, asphalt penetration, etc.) or which affects any other portion of the Retail Center. Rather, only Landlord’s contractors shall perform such work after the Landlord has consented in writing to such work being performed and approved the plans for such work in writing. Such work shall be completed at Tenant’s so le cost and expense and shall be paid by Tenant to Landlord’s contractor prior to the commenc e- ment of such work. Once Tenant has received the prior written consent of Landlord to such work and plans, Tenant may contact Landlord’s contractor to schedule such work. For the purposes of this Lease and in addition to the aforesaid, the term “Applicable Laws” shall include without limitation the Americans With Disabilities Act as amended or modified from time-to-time, and all regulations promulgated thereunder and all laws regulating the storage, use, transfer and/or disposal of Hazardous Materials (described below). 2. TERM. See “Basic Lease Provisions” which are incorporated herein. Water’s Edge/CRA Landlord Lease v.1 Tenant 5 3. HOLDOVER. In the event Tenant remains in possession of the Premises after the expiration date or sooner termination of this Lease and without the execution of a new Lease, Tenant shall be deemed a Tenant at-will from month-to-month, subject to all the conditions of this Lease except for rent. The parties recognize and agree that the damage to Landlord resulting from any failure by Tenant to timely surrender possession of the Premises will be substantial, will exceed the amount of the monthly installments of the rent payable under the Lease, and will be impossible to measure accurately. Tenant therefore agrees that if possession of the Premises is not surrendered to Landlord upon the expiration date or sooner termination of the Lease, in addition to any other rights or remedies Landlord may have under the Lease or at law, Tenant shall pay to Landlord, without demand therefore as liquidated damages, for each month and for each portion of any month during which Tenant holds over in the Premises after the expiration date or sooner termination of this Lease, a sum equal to two (2) times the aggregate of that por- tion of the minimum Base Rent and additional rent that was payable under this Lease during the last month of the term. Nothing herein contained shall be deemed to permit Tenant to retain pos- session of the Premises after the expiration date or sooner termination of the Lease. Tenant shall defend, indemnify, and hold Landlord harmless from any and all liabilities, loss, cost and ex- pense of every kind suffered by Landlord as a result of Tenant’s holding over. The provisions of this Section shall survive the expiration date or sooner termination of the Lease. 4. BASE RENT (MINIMUM RENT). See “Basic Lease Provisions”, which are incorporated herein. 5. ADDITIONAL RENT. N/A 6. SECURITY DEPOSIT. See “Basic Lease Provisions”, which are incorporated herein. 7. COVENANT TO PAY RENT. Tenant shall pay the Base Rent and taxes there- on, as herein provided to Landlord at Landlord’s address herein or at such other place as Land- lord may designate in writing without demand and without counterclaim, deduction or set-off. If any monthly rent payment is not paid within fifteen (15) days after its due date, Tenant also agrees to pay with said monthly rent payment as additional rent, without demand from Landlord, an amount equal to Forty Five and No/100 Dollars ($45.00) plus Five and No/100 Dollars ($5.00) for each day rent is late beyond the 15th day. 8. POSSESSION. Tenant hereby accepts the Premises in “Vanilla Box/Shell” with the improvements as provided in Exhibits A and B, on commencement of this Lease. The taking of possession of the Premises by Tenant shall constitute completed acceptance of the Premises in their “AS IS” condition, and a waiver of any obligation of Landlord to make further improv e- ments to the Premises. Tenant agrees to execute an estoppel letter or letter of acceptance at th e time Tenant takes possession, if so requested. Tenant further agrees to furnish Landlord, at the time of possession, with certificates of insurance giving proof of Tenant’s compliance with the insurance requirements of this Lease. 9. USE OF THE PREMISES. The Premises may be used and occupied only for the purposes set forth in the Basic Lease Provisions above, and for no other use or purpose. Landlord acknowledges that the Premises may be occupied and used by CRA, City and Profes- Water’s Edge/CRA Landlord Lease v.1 Tenant 6 sional Association of Visual Artists (PAVA). In connection with Tenant’s occupancy and use of the Premises, Tenant shall also comply strictly with all Applicable Laws. In the event of any breach or violation of the terms of this Section by Tenant, following written notice from Land- lord, Tenant shall immediately cease and desist from such breach or violation. 10. CARE OF THE PREMISES. Tenant shall commit no act of waste and shall take good care of the Premises and the fixtures and appurtenances therein, and shall maintain and repair the Premises so that the Premises are at all times compliant with all Applicable Laws. Tenant shall keep the Premises in clean and sightly, first class condition. 11. MAINTENANCE AND REPAIRS. Tenant shall repair any damage to the Prem- ises caused by Tenant or by any of Tenant’s employees, agents, customers, invitees, or licensees. Tenant shall maintain the interior of the Premises and all walls, doors, windows, heating, coo l- ing, interior plumbing, and mechanical equipment and plate glass, and Landlord agrees, whenev- er possible, to extend to the Tenant the benefit of any enforceable manufacturer’s warranties on such equipment. If Tenant refuses or neglects to make repairs and/or refuses to maintain the Premises or any part thereof in a manner reasonably satisfactory to Landlord, then Landlord shall have the right, upon giving Tenant fifteen (15) days written notice of its election to do so, to make such repairs or perform such maintenance on behalf of and for the account of Tenant. In such event, such work shall be paid for by Tenant, to Landlord, within ten (10) days of receipt of an invoice for such repairs and/or maintenance. Landlord shall, unless paid by the Condominium Association, at its expense, maintain in good condition and repair, the roof, foundation, structural supports, underground or otherwise concealed plumbing and concealed HVAC to the point of entry to the Premises, exterior walls (excluding store front, doors, window glass, and plate glass), exterior painting, exposed and exterior electrical systems to the point of entry to the Premises, and the sewer lines serving the Premises. Landlord shall not in any way be liable to Tenant for failure to make repairs as herein specifically required unless Tenant has previously notified Landlord in writing of the need for such repairs and Landlord has failed to commence and complete said repairs within a reasonable period of time following receipt of such notification. 12. REMOVAL OF PROPERTY. All improvements made by Tenant to the Premises which are so attached to the Premises that they cannot be removed without causing material injury to the Premises shall become the property of Landlord upon installation. No later than the last day of the term, Tenant, at Tenant’s expense, shall remove all of the Tenant’s personal property and those improvements made by Tenant which have not become the proper- ty of Landlord, including trade fixtures, cabinet work, moveable paneling, partitions, and the like, repair all injury done by or in connection with the installation or removal of such property and improvements, and surrender the Premises in as good condition as they were at the begi n- ning of the term, reasonable wear, and damage by fire, the elements, casualty, or other cause not due to the misuse or neglect by Tenant or Tenant’s agents, employees, visitors, customers, invitees or licensees, excepted. All property of Tenant remaining on the Premises after the last day of the term of this Lease shall be conclusively deemed abandoned and may be removed and disposed of by Landlord, and Tenant shall reimburse Landlord for the cost of such remov- al. Water’s Edge/CRA Landlord Lease v.1 Tenant 7 13. ALTERATIONS. Without Landlord’s prior written consent, Tenant shall not make any structural or exterior alterations or additions upon said Premises, including any changes to signage which has been previously approved by Landlord pursuant to the terms of this Lease, provided, however, that Tenant shall have the right to make non-structural interior alterations and repairs by first obtaining written consent of Landlord. In connection with such work, Tenant shall obtain all required permits and governmental approvals, and Tenant shall comply with all Applicable Laws. 14. HAZARDOUS ACTIVITIES, WASTE, ABANDONMENT. Tenant shall not do or suffer anything to be done on the Premises that will increase the rate of fire insurance for any portion of the Retail Center. Tenant shall not permit the accumulation of waste or refuse matter on the Premises or anywhere in or near the building. Tenant shall not, without first ob- taining the written consent of Landlord, abandon the Premises or allow the Premises to become vacant or deserted. Throughout the term of this Lease, Tenant shall prevent the presence, use, generation, release, discharge, storage, disposal, or transportation of any Hazardous Materials (as hereinafter defined) on, under, in, above, to or from the Premises, other than in strict compliance with all Applicable Laws. For the purpose of this provision, the term “Hazardous Materials” shall mean and refer to any waste materials, or other substances of any kind or character that are or become regulated as hazardous or toxic waste or substances, or which require special handling or treatment, under any applicable local, st ate or federal law, rule, regulation or order. Tenant shall indemnify, defend, and hold Landlord harmless from and against: (a) any loss, cost, expense, claim, damage, injury or liability arising out of any investigation, monitoring, clean-up, containment, removal, storage, or restoration work (herein referred to as “Remedial Work”) required by, or incurred by Landlord or any other person or party in a reasonable belief that such Remedial Work is required by any applicable federal, state, or local law, rule, regulation, or order, or by any governmental agency, authority, or political subdivision having jurisdiction over the Premises; and (b) any claims of third parties for loss, injury, expense, or damage arising out of the presence, release, or discharge of any Hazardous Materials on, under, in, above, to or from the Premises, to the extent that such matters arise from the actions or omissions of Tenant or Tenant’s employees, agents, contractors, subcontractors, suppliers, visitors, customers, invitees or licensees. In the event any Remedial Work is so required under Applicable Laws. Tenant shall promptly perform or cause to be performed such Remedial Work in compliance with such law, rule, regulation, or order. In the event Tenant shall fail to commence the Remedial Work in a timely fashion, or shall fail to prosecute diligently the Remedial Work to completion, such failure shall constitute an event of default on the part of the Tenant under the terms of this Lease, and Landlord, in addition to any other rights or remedies afforded it hereunder, may, but shall not be obligated to, cause the Remedial Work to be performed, and Tenant shall promptly reimburse Landlord for the cost and expense thereof upon demand. The indemnification and other covenants contained in this Section shall survive the termination of this Lease. 15. RULES AND REGULATIONS. Tenant shall observe and comply with such reasonable rules and regulations as Landlord or the Water’s Edge Condominium Association (the “Condominium Association” or “HOA”) may from time to time prescribe, on written no- tice to Tenant, for the safety, care, and cleanliness of the building and the comfort, quiet and Water’s Edge/CRA Landlord Lease v.1 Tenant 8 convenience of other occupants of the building and/or grounds and parking regulations set forth by Landlord. 16. CONTROL OF EXTERIOR APPEARANCE. The exclusive right is re- served by the Landlord and HOA to control the exterior appearance of the entire Retail Center, including, but not limited to all signs, decoration, lettering and advertising visible from the ex- terior of the building (including those on the interior or on windows or doors), shades, awn- ings, window coverings, exterior or interior lights, antennae, canopies, or anything whatsoever affecting the visual appearance of the building. Tenant will not place or cause to be placed or maintain any item of any kind on or in any of the Premises affecting the exterior a ppearance of the building or common areas without first obtaining Landlord’s written approval and consent. Tenant further agrees to maintain any said items as may be approved in good condition and re- pair at all times. 17. UTILITY SERVICES. Tenant shall timely pay for all utilities, trash collection and similar services which may be furnished to or used in or about the Premises and Tenant shall keep the same free and clear of any lien or encumbrance of any kind whatsoever relating to such services. Landlord shall cause all utilities to be separately metered to the Premises. 18. DAMAGE. Landlord shall have the option to terminate the Lease if all or a substantial portion of the Premises or Retail Center is damaged by fire or casualty. This option may be exercised by Landlord upon giving notice of cancellation to Tenant within ninety (90) days following the occurrence of the damage. If the Premises or Retail Center are damaged or destroyed by fire or casualty, and Landlord does not elect to terminate the Lease, to the extent that there are available to Landlord sufficient proceeds from insurance to restore the Premises, Landlord shall proceed with reasonable diligence to restore the same to its former condition. Tenant agrees that during any period of reconstruction or repair of the Premises, it will contin- ue the operation of its business within the Premises to the extent practicable. During the period from the occurrence of the casualty until Landlord’s repairs are completed, the minimum Base Rent shall be reduced by the Landlord to such extent as may be fair and reasonable in r elation to the level of damage and disrepair suffered by the Premises and the Tenant’s ability to con- duct its business from the Premises. However, there shall be no abatement of the other charges provided herein. 19. WAIVER OF SUBROGATION. Landlord and Tenant hereby waive any rights each may have against the other on account of any loss or damage occasioned to Land- lord or Tenant, as the case may be, their respective property, the Premises, or its contents, or to other portions of the Retail Center, arising from risk generally covered by fire and extended coverage insurance policies then in use in the state where the Retail Center is situated; and the parties each, on behalf of their respective insurance companies insuring the property of either Landlord or Tenant against any such loss, will use reasonable efforts to obtain an endorsement waiving any right of subrogation from their respective insurance companies, if such endorse- ment is requested. Landlord shall not be liable for any damage to or destruction of any of Ten- ant’s goods, merchandise, fixtures or property caused by fire or any other cause whatsoever. 20. REMEDIES OF LANDLORD. If Tenant shall default in payment of the rent reserved herein, or in the payment of any other monies due hereunder, or any part of same on Water’s Edge/CRA Landlord Lease v.1 Tenant 9 the date that monies shall become due, then Landlord may proceed with any and all remedies available at law. If Tenant shall default in the observance of any of the other terms, covenants, and conditions of this Lease, or if the Premises shall be abandoned, deserted, or closed for business for more than ten (10) consecutive days or fifteen (15) days in a month, or if Tenant shall sublet the Premises or assign this Lease except as herein provided; or if Tenant shall make an assignment for the benefit of creditors, or file a voluntary petition in bankruptcy or be adj u- dicated as bankrupt by any court and such adjudication shall not be vacated within thirty (30) days or Tenant takes the benefit of any insolvency act, or Tenant becomes dissolved voluntarily or involuntarily or has a receiver of Tenant’s property appointed in any proceeding other than bankruptcy proceedings and such appointment shall not be vacated within thirty (30) days after it has been made, THEN, upon the happening of any one or more of the defaults or events specified above in this Lease, the term hereof shall, at the option and election of the Landlord, wholly cease and terminate and thereupon, or at any time thereafter, Landlord may re-enter said Premises and have possession of the same and/or may recover possession thereof by summary proceedings or otherwise, but Tenant shall remain liable to Landlord. In the event of any one or more of the defaults set out above, all payments of Base Rent, additional rent or of any other monies due from Tenant during the term of this Lease, or any extension thereof, shall, at the option of Landlord, become immediately due and payable in full. In such event, Landlord may re-enter the Premises without being liable to Tenant in any respect for the prosecution of such rights, and Landlord may repair or alter the Premises in such manner as Landlord may deem necessary or advisable to re-let the Premises. Landlord shall also have the right to re-let said Premises and to collect any deficiency in re-letting in addition to any reasonable expenses incurred; however, the Tenant’s obligation to pay Base Rent, additional rent and other sums due hereunder shall survive the termination of the Lease. The election by Landlord of any single remedy shall not preclude the exercise of any other remedies at law or in equity, whether or not such other remedies are mentioned in this Lease. Landlord shall not, in any event, be obligated or required to institute any measures or to take any actions to attempt to mitigate Landlord’s damages arising from Tenant’s default. 21. LITIGATION, COURT COSTS, ATTORNEYS’ FEES. In the event that at any time either Landlord or Tenant shall institute any action or proceedings against the other relating to the provisions of this Lease or any default hereunder, then and in that event, the pr e- vailing party in such action or proceeding shall be entitled to recover from the other party its reasonable costs, expenses and attorneys’ fees which shall be deemed to have accrued on the commencement of the proceeding or counterclaim brought by either of them against the other on any matters whatsoever arising under this Lease. This Lease shall be governed by, co n- strued, and enforced in accordance with the laws of the State of Florida. 22. ASSIGNMENT AND SUBLETTING. Tenant may not assign or encumber its interest in this Lease or the Premises and may not sublease the Premises in whole or in part, without prior written permission of Landlord, in Landlord’s sole and absolute discretion. In connection with Landlord’s consideration of any proposed assignment or sublease, Landlord may consider any factors deemed relevant to Landlord, including without limitation the per- ceived financial ability of the proposed assignee or subtenant to comply with the financial and/or use covenants herein contained and the reputation in the business community of the proposed assignee or subtenant. Consent by Landlord to one or more assignments or subletting Water’s Edge/CRA Landlord Lease v.1 Tenant 10 shall not operate as a waiver of Landlord’s rights as to any subsequent assignments and sublet- ting. Notwithstanding any such permitted assignment or subletting, Tenant shall remain pri- marily responsible to Landlord for the payment of Base Rent and additional rent and perfor- mance of all covenants, terms and conditions hereof on Tenant’s part to be performed. Howev- er, Notwithstandinganything herein to the contrary, Landlord specifically acknowledges that the Premises may be occupied and used by the City, PAVA and the CRA as provided in this agreement without further approval of Landlord. 23. SUBORDINATION AND ATTORNMENT. This Lease and all of Tenant’s rights hereunder shall be subject and subordinate to all mortgages that may now or hereafter be granted by Landlord on the real property of which the Premises form a part, and also to all r e- newals, modifications, consolidations, and replacements of such mortgages. Although no in- strument or act on the part of Tenant shall be necessary to effectuate such subordination, Tenant will nevertheless execute and deliver such further documentation of this subordination as may be desired by the holders of such mortgages. Tenant hereby appoints Landlord attorney-in- fact, irrevocably, to execute and deliver any such instrument to Tenant. In the event of any transfer of the ownership of the Premises whether voluntary or involuntary by foreclosure, bankruptcy, sale, or otherwise, Tenant shall, at the option of the transferee of said ownership, attorn said transferee to the same extent as if said transferee were the initial Landlord under the Lease. 24. MECHANICS’ LIENS. Tenant shall, within ten (10) days after notice from Landlord, discharge or bond off any mechanics’ or similar liens for materials or labor claimed to have been furnished to the Premises on Tenant’s behalf. All contractors, subcontractors, materialmen, and any other persons now or hereafter furnishing any labor, services, materials, supplies or equipment to or on behalf of the Tenant with respect to the Premises are hereby placed on notice that they must look exclusively to the Tenant for payment of the same and that Landlord shall not be subject to or liable for any labor, services, materials, supplies, machinery, fixtures, or equipment furnished to or supplied to Tenant. Tenant shall have no authority to subject Landlord’s interest to any such claims or liens and no such lien for any of the foregoin g shall attach to or affect the interest of Landlord in the Premises. 25. NOTICE. As to Landlord: WATER’S EDGE COMMERCIAL GROUP, LLC 331 Cleveland Avenue, No. 2502 Clearwater, Florida 33755 Attention: Daniels Ikajevs Tel. (727) 424-2321 Water’s Edge/CRA Landlord Lease v.1 Tenant 11 As to Tenant: CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY 112 South Osceola Ave. Clearwater, FL 33755 Attention: Seth Taylor, CRA Director Tel. (727) 562-4072 Any notice which is to be given to either party hereunder shall be deemed sufficiently given if hand-delivered to the Premises or sent by certified or registered mail, postage prepaid, or by means of an overnight delivery service (i.e. Federal Express, Airborne) to such party at its address appearing above in writing. Any notice given to Tenant shall also be given to any assignee or sub-tenant and all notices to an assignee or sub-tenant or Tenant shall also be sent to Tenant. 26. RIGHT TO INSPECT AND REPAIR. Landlord may, but shall not be obligated to enter the Premises at any reasonable time, on reasonable notice to Tenant (except that no no- tice need be given in the case of emergency), for the purpose of inspecting the Premises, to make such repairs, replacements, or additions in, to, on, and about the Premises or the building as Landlord deems necessary or desirable, or to exercise Landlord’s other rights hereunder. 27. CONSTRUCTIVE EVICTION. Tenant shall not be entitled to claim a con- structive eviction for any cause unless Tenant shall have first notified Landlord in writing of the condition or conditions giving rise to such claim, and if the complaint be justified, unless Landlord shall have failed within a reasonable time (in no event less than thirty (30) days) after receipt of such notice to remedy such conditions. Tenant shall also serve notice of Landlord’s default to the holder of the first mortgage or deed of trust on the Premises. The holder of the first mortgage or deed of trust shall also have the right, but not the obligation, to cure the de- fault within such period. 28. CONDEMNATION. From and after the Rent Commencement Date, Tenant shall have the following rights in the event of a taking of the entire Retail Center or any part thereof, by reason of any exercise of the power of eminent domain, including any transfer in lieu thereof: (a) Total Permanent. In the event of a taking of the entire Premises or, in the sole discretion of Tenant, so substantial portion as would render the balance of the Premises not suitable for Tenant’s Uses, this Lease shall terminate upon the date that possession is sur- rendered to the condemning authority, at which time all rights and obligations between the par- ties shall cease and Base Rent and other charges payable by Tenant under this Lease shall be apportioned. The taking of any portion of the Building, fifteen percent (15%) or more of the then existing parking area, or the loss or change of any the rights of access or ingress and egress as then established, shall be at Tenant’s sole discretion, but not exclusively considered, such a substantial taking as would render the use of the Premises not suitable for Tenant’s then current uses. In any of the foregoing events of taking, Tenant has the exclusive right to claim such award as may be allowed for loss of its business, personal property, trade fixtures, equip- Water’s Edge/CRA Landlord Lease v.1 Tenant 12 ment and relocation expenses, provided and to the extent such claim does not diminish or ad- versely affect Landlord’s award. (b) Partial Permanent. In the event of a taking of less than the entire Premises or, in the sole discretion of Tenant, less than a substantial portion as would render the balance of the Premises not suitable for Tenant’s Uses, Tenant shall be entitled to a reduction of Base Rent an amount equal to the prorated rent per foot of the Premises taken. In consideration of such reduction, Tenant waives any claim for damage to or loss of its leasehold estate, all of such award being payable to Landlord, who shall use so much thereof as may be necessary to restore the Premises as nearly as possible to its condition immediately prior to the taking. Ten- ant shall have the option to perform such restoration and Landlord shall, upon Tenant’s elec- tion, provide the whole of such award or such portion thereof as may be necessary for Tenant to accomplish the restoration. Should such award be insufficient to accomplish the restoration, such additional costs shall be paid by Landlord. (c) General. Should Landlord and Tenant be unable to agree as to the division of any singular award or the amount of any reduction of Base Rent and other charges payable by Tenant under this Lease, such dispute shall be submitted for resolution to the court exercis- ing jurisdiction of the condemnation proceedings, each party bearing its respective costs for such determination. Landlord represents and warrants that at the Rent Commencement Date, it has no actual or constructive knowledge of any proposed condemnation, road or access or visi- bility changes including, but not limited to, turn restrictions, barriers or medians, overpasses, underpasses or bypasses, that would affect the Retail Center or the Premises. 29. INSURANCE. (a) Tenant’s Insurance. At all times after the date of delivery of possession of the Premises to Tenant, Tenant, at Tenant’s sole cost and expense, shall maintain in full force and effect the following insurance, which insurance shall be with companies licensed to do business in the State of Florida: (i) A Commercial General Liability Insurance Policy applying to the use and occupancy of the Premises and the business operated at the Premis- es; such coverage shall have a minimum combined single limit of liability of at least One Million Dollars ($1,000,000) and a general aggregate limit of at least One Million Dollars ($1,000,000), and the policy shall [a] be written to apply to all bodily injury, property damage, personal injury and other covered loss, how- ever occasioned, occurring during the policy term, [b] name as an additional in- sured, Landlord (and, at Landlord’s request, any mortgagee), [c] by its terms, be cancelable or materially altered only with at least thirty (30) days prior written no- tice to Landlord (and any such mortgagee); and [d] shall be endorsed to provide that the insurance shall be primary to and not contributory to any similar insur- ance carried by Landlord and shall contain a severability of interest clause. Water’s Edge/CRA Landlord Lease v.1 Tenant 13 (ii) An all risks property and casualty insurance policy, written at the full replacement cost value and with replacement cost endorsement, cover- ing the Premises and all of Tenant’s personal property in the Premises (including, without limitation, inventory, trade fixtures, floor coverings, furniture and other property removable by Tenant under the provisions of this Lease), the plate glass in or surrounding the Premises and all Tenant improvements and the Leasehold Improvements installed in the Premises by or on behalf of Tenant; providing pro- tection against perils included within the standard all-risk form of fire and extend- ed coverage insurance policy, together with insurance against sprinkler damage, if applicable (but Landlord makes no representation that the Premises is equipped with a sprinkler system), vandalism and malicious mischief. (b) Policy Requirements. Each policy required hereunder shall contain a covenant that should such policies be cancelled, assigned or materially changed during the policy period, the insurer will mail a notice thereof to Landlord, Landlord’s lender and any other parties required to receive such notice, at least thirty (30) days in advance. All insurance policies required to be maintained under this Lease shall be procured from insurance companies rated at (A-/IX) or better by the then current edition of Best’s Insurance Reports published by A.M. Best Co. and licensed to do business in the state in which the Premises are located. Prior to Tenant’s possession of any portion of the Premises, Tenant shall furnish to Landlord the policies or certificates of insurance showing the insurance referred to in this Section 29 to be in full force and effect naming Landlord as additional insured and certificate holder. No such policy shall be cancelable except after thirty (30) days written notice to Landlord. Tenant shall, prior to the expiration of any such policy, furnish Landlord, any mortgagee and any third party required to receive notices of insurance, with renewals or “binders” thereof together with evidence of the payment of premiums therefore, or Landlord may order such insurance and charge the cost thereof to Tenant, which amount shall be paid by Tenant upon demand. The insurance, as to the interest of Lender therein, shall not be invalidated by any act or neglect of Landlord or Tenant or any owner of the Premises, nor by any foreclosure or any other proceedings or notices thereof relating to the Premises, nor by any change in the title or ownership of the Premises nor by occupancy of the Premises for purposes more hazardous than are permitted by such policy. It shall be the responsibility of Tenant not to violate nor knowingly permit to be violated any condition of the policies required under this Lease. Neither the issuance of any such insurance policy nor the minimum limi ts specified in this Section 29 shall be deemed to limit or restrict in any way Tenant’s liability arising under or out of this Lease. (c) Deductibles. Subject to the requirements of any insurance required herein, the property insurance specified herein shall have a deductible no greater than Five Thousand Dollars ($5,000.00). All liability insurance specified herein shall have a deductible no greater than Five Thousand Dollars ($5,000.00). Tenant shall be liable for any deductible amount. The policies of insurance required to be carried by Tenant shall be primary and not in excess of any other insurance available to Landlord. Water’s Edge/CRA Landlord Lease v.1 Tenant 14 (d) Personal Property, Risk of Damage. Tenant agrees that all personal property of every kind or description, including, without limitation, inventory, furniture, furnishings, and trade fixtures, which may at any time be in the Premises shall be at Tenant’s sole risk, or at the risk of those by, through or under Tenant, and Landlord shall not be liable for, and shall be held harmless by Tenant against, all losses, liability, and expenses (including but not limited to subrogation claims by Tenant’s insurance carrier) for any damage to said property or for any loss suffered by the business or property of Tenant arising from any cause whatsoever including but not limited to bursting, overflowing or leaking of water, sewer or steam pipes or from the heating or plumbing fixtures or equipment, or from the electric wiring or from gas, fumes or odors. (e) No Impairment of Coverage; Coverage Increases. Tenant shall not carry any stock of goods or do anything in or about the Premises that will impair or invalidate the obligation of any policy of insurance on or in reference to the Premises or the Building. Land- lord shall have the right to reasonably require that the amount or types of insurance coverage required of Tenant hereunder be adjusted upon the commencement of each option period and from time to time to reflect insurance customarily required by prudent landlords for similar properties in the metropolitan area in which the Premises are located. (f) Landlord’s Insurance. Landlord agrees to provide and keep in force during the Term of this Lease the following insurance coverage from an insurance company or com- panies authorized to do business in the state in which the Property is located: commercial gen- eral liability insurance, including contractual liability coverage with combined single limited coverage of not less than One Million and/100 Dollars ($1,000,000.00) for injury to persons or property and loss of life or property in or about the Premises arising out of any one occurrence. Such insurance shall be endorsed to provide that the insurance shall be primary to and not con- tributory to any similar insurance carried by Tenant and shall contain a severability of interest clause. 30. INDEMNITY. Tenant covenants that Landlord shall not be liable for any dam- age or liability of any kind or for any injury to or death of persons or damage to property of Tenant or any other person during the term of this Lease, from any cause whatsoever, by rea- son of the use, occupancy, and enjoyment of the Premises by Tenant or any person thereon or holding under said Tenant, and that Tenant will indemnify and save harmless Landlord from all liability whatsoever on account of any such real or claimed damage or injury and from all liens, claims, demands, lawsuits, actions and regulatory or administrative actions arising out of the use of the Premises and its facilities or any repairs or alterations which Tenant may make upon said Premises, but Tenant shall not be liable for damage or injury occasioned by the gross neg- ligence of Landlord or Landlord’s designated agents, servants, or employees. Such indemnity shall include without limitation Landlord’s reasonable attorney’s fees and investigation costs and all other reasonable costs, expenses, and liabilities incurred by Landlord defending against or responding to any indemnified matter. 31. LANDLORD’S RIGHT TO CANCEL. Should the operation of Tenant’s busi- ness be or become or attract customers whose conduct is offensive or in any way threatening to the Landlord, the other tenants in the Retail Center, or the customers of the other tenants, the Water’s Edge/CRA Landlord Lease v.1 Tenant 15 Landlord may, at Landlord’s option, cancel and terminate this Lease, if Tenant fails to stop such offensive or threatening activities within thirty (30) days after written notice thereof to Tenant. 32. INTERRUPTION OF UTILITIES. Landlord shall not be liable for any inter- ruption whatsoever in utility services not furnished by it, nor for interruptions in utility services furnished by it which are due to fire, accident, strike, acts of God, or other cause beyond the control of Landlord, or in order to make alterations, repairs or improvements to the Premises. 33. PERSONAL PROPERTY TAXES. Tenant shall be liable for all taxes levied against personal property and trade fixtures placed by Tenant in the Premises. If any such tax- es are levied against Landlord’s property and if Landlord elects to pay the same or if the as- sessed value of Landlord’s property is increased by inclusion of personal property improve- ments and trade fixtures placed by Tenant in the Premises and Landlord elects to pay the taxes based on such increase, Tenant shall pay to Landlord upon demand that part of such taxes for which Tenant is primarily liable hereunder as determined by Landlord. 34. NO WAIVER. One or more waivers of any covenant, term or condition of this Lease by either party shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any act by the other party requiring such consent or approval shall not be deemed to waive or render unneces- sary consent to or approval of any subsequent similar act. 35. FORCE MAJEUR. Whenever a period of time is herein prescribed for action to be taken by Landlord, Landlord shall not be liable or responsible for, and there shall be exclud- ed from the computation of any such period of time, any delays due to strikes, riots, Acts of God, actual and significant shortages of labor or materials, war, governmental moratoria or any other cause of any kind whatsoever which are beyond the reasonable control of Landlord. 36. ESTOPPEL CERTIFICATE. Tenant agrees at any time, and from time to time, upon not less than fourteen (14) days prior notice by Landlord, to execute, acknowledge and deliver to Landlord, a statement in writing addressed to Landlord certifying the following: (a) that this Lease or any sublease is unmodified and in full force and effect (or, if there have been modifications, that they are in full force and effect as modified and stating the modifica- tions), stating the dates to which the Base Rent, additional rent and other charges have been paid; (b) Tenant has accepted possession of the Premises and is presently occupying the Prem- ises; (c) stating whether or not to the best knowledge of the signer of such certificate, there ex- ists any default by Landlord in the performance of any covenant, agreement, term, provision or condition contained in this Lease, and if so, specifying each such default, it being intended that any such statement may be relied upon by Landlord, by any holder or prospective holder of any mortgage affecting the Retail Center or by any purchaser of the Retail Center; and, (d) any oth- er information reasonably requested by a prospective purchaser, mortgagee or tenant of the Re- tail Center. For the purposes of this Lease, the terms “mortgage” and “deed of trust” shall have the same meaning, and the term “mortgagee” shall include the holder/beneficiary/lender under any deed of trust. Water’s Edge/CRA Landlord Lease v.1 Tenant 16 37. RELATIONSHIP BETWEEN PARTIES. Nothing herein contained shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the parties, it being under- stood and agreed that neither the method of computation of rent, nor any other provision con- tained herein, nor any acts of the parties shall be deemed to create any relationship between the parties other than the relationship of Landlord and Tenant. 38. INTERPRETATION. If any provisions of the Lease are contrary to the law of the State of Florida, each provision shall be deemed stricken herefrom and the balance of this Lease shall remain in full force. If there is more than one (1) Tenant or Landlord, they shall be bound jointly and severally. The terms “Landlord” and “Tenant” and any pronoun referring thereto shall be deemed to include their respective heirs, executors, administrators, successors and assigns without regard to gender or number wherever the context so permits. The captions to each article are used for convenience only and are not to be considered a part of this Lease nor used in interpreting it. 39. RECORDING. Upon the request of either party hereto, the other party shall join in the execution of a notice or so-called “short form” of this Lease which shall be in proper form for recording and sufficient to give record notice of the lease interest created herein and such other pertinent information as Landlord deems necessary for public recordation, includ- ing, but not limited to notice of the “no lien” provisions of Section 24. In addition, after the Rent Commencement Date, and upon the request of either party, the other party will execute an instrument in recordable form setting forth such Rent Commencement Date. The requesting party shall pay the costs of any such recording. 40. AUTHORITY TO EXECUTE. Landlord and Tenant do each hereby respec- tively represent to the other that, subject only to the reservations expressly set forth herein, it has the capacity and authority to enter into this Lease. Landlord owns the property described in Exhibit “A” attached, or will own same prior to the date on which the Premises are deliv- ered to Tenant. 41. NO OTHER REPRESENTATIONS. No representations or promises shall be binding on the parties hereto except those representations and promises contained herein or in some future writing signed by the party making such representations or promises. 42. PARKING. There is no parking provided as part of this Lease. 43. TENANT SIGNS. Tenant, at its sole cost and expense and within thirty (30) days following Tenant’s opening for business, shall be required to erect a sign advertising its business upon the front exterior wall of the Premises. Such sign shall be situated in the area designated by Landlord, which shall be the area wherein Landlord provides the wiring for Ten- ant’s connection of such sign. Such sign shall comply in all respects with applicable permits, codes, laws and regulations, and with Landlord’s and HOA’s sign criteria and Tenant’s sign shall not be installed until it has been approved in all respects by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed by Landlord. Water’s Edge/CRA Landlord Lease v.1 Tenant 17 44. TIME IS OF THE ESSENCE. Time is of the essence of this Lease and every provision thereof. 45. SET-UP DEBRIS. All Tenant’s moving and setting up waste and trash shall not be discharged into Landlord’s trash containers and shall be disposed of separately by Tenant at Tenant’s cost and expense. 46. OPTION TO RENEW. See “Basic Lease Provisions”, which are incorporated herein. 51. ENTIRE AGREEMENT. The foregoing constitutes the entire agreement be- tween the parties and may be modified only in writing signed by both parties. The following Exhibits, if any, and the Rules and Regulations have been made a part of the Lease before the parties execution hereof. 52. NO OFFER. This Lease is submitted to Tenant on the understanding that it will not be considered an offer and will not bind Landlord in any way until: (a) Tenant has duly ex- ecuted and delivered duplicate originals to Landlord; and (b) Landlord has executed and deliv- ered one of such originals to Tenant. 53. REAL ESTATE BROKER. Tenant warrants and represents that there is no real estate broker except for Hybridge Realty (representing Landlord) has been involved in this Lease, and neither Landlord nor Tenant has had any dealings with any other real estate broker or salesman in connection with this Lease. Lease. Landlord has agreed to pay to Hybridge Re- alty, a real estate commission in connection with the consummation of this Lease. 54. GUARANTY. N/A 55. LANDLORD ASSIGNMENT. Landlord shall have the right to transfer, assign and convey, in whole or in part, any or all of the right, title and interest to the Retail Center, provided, such transferee or assignee shall be bound by the terms, covenants and agreements herein contained, and shall expressly assume and agree to perform the covenants and agree- ments of Landlord herein contained and such assignment shall not be effective until notice of such assignment or transfer together with an executed copy of such assignment or transfer in- strument is received by Tenant. [SIGNATURES BEGIN ON THE FOLLOWING PAGE] Water’s Edge/CRA Landlord Lease v.1 Tenant 18 AGREED TO AND ACCEPTED BY: WITNESSES: Print Name: Print Name: LANDLORD: WATER’S EDGE COMMERCIAL GROUP, LLC., a Florida limited liability company By: ___________________________________ Daniels Ikajevs, Managing Member WITNESSES: Print Name: Print Name: TENANT: CITY OF CLEARWATER COMMUNITY REDEVELOPMENT AGENCY, By: Seth Taylor, CRA Director Water’s Edge/CRA Landlord Lease v.1 Tenant 19 EXHIBIT “A” PREMISES EXHIBIT “B” PREMISES