The City and Metzger Marine Services entered into a lease on July 1, 2015 governing the use and operation of the Coffee Bluff Marina. The initial term of the lease was four years. The lease provided the option to extend the lease term for an additional four years based on mutually agreeable rental rates. The purpose of this amendment is to establish the rental rates during the renewal term.

The tenant is currently paying $500 per month. The rental rate was supposed to be higher at this point, but delays in the extension of dockside fuel service by the City resulted in no rent increase for several years, and adverse weather conditions impacted the tenant’s ability to sustain a higher rental cost during the first four year term. In addition, limited dockage space and boat storage opportunities as well as restrictions on uses (prohibiting boat repair and a restaurant/bar) have constrained revenue opportunities. The first amendment seeks to provide a base rent that will allow the operator to continue to function at the marina, but also provide percentage rent to the City in the event business conditions and operating results improve over time.

The amendment provides a new rental rate of $750 per month and that rate will increase by $250 per month each year thereafter over the four year extension period.  In addition, the City will receive percentage rent equating to 10% of gross revenues over $250,000 per year, if such revenues are realized.

Approval