SARASOTA MANATEE AIRPORT AUTHORITY NOVEMBER 22, 2021 MEETING STAFF NARRATIVE

REQUEST FOR APPROVAL FOURTH AMENDMENT TO GENERAL GROUND LEASE SUNCOAST GOLF CENTER, LLC

EXECUTIVE SUMMARY: Staff is requesting approval of a Fourth Amendment to the General Ground Lease with Suncoast Golf Center, LLC to provide rent relief and extend the term of the lease three years through July 31, 2026

NARRATIVE: On July 14, 2003, the Authority approved a General Ground Lease with Suncoast Golf Center, LLC, for approximately 18.45 acres of unimproved land, located at 7741 15th Street East, with an initial seven-year term and no renewal terms, ending July 31, 2010.

Thereafter, the Authority approved a First Amendment to the Lease, dated April 20, 2010, that extend the Term of the Lease through July 31, 2013, to provide time for Lockheed Martin Corporation to complete the Tallevast Remediation Project. The Authority also approved a Second Amendment to the Lease, dated November 21, 2011, to provide for Rental Adjustments during the Term of the Lease and to extend the Term of the Lease through July 31, 2018. In addition, the Authority approved a Third Amendment to the Lease, dated October 1, 2014, to reduce the Rent, reduce the Percentage Rental, and to extend the Term of the Lease through July 31, 2023.

Recently, Suncoast Golf Center advised the Authority that it was significantly negatively affected financially by the COVID-19 Pandemic, is currently generating negative cash flow, and has requested the Authority to consider reducing their Percentage Rental requirements and to extend the Lease an additional three years to provide them an opportunity to invest in their business and to recover from the pandemic.

The Leased Premises lies in part in the Runway Protection Zone for Runway 22. Suncoast Golf Center's current use of the land as a golf course is a compatible land use and the Authority is not aware of any other demand for use of the land. Based on the limited potential use of the land, Staff is presenting for consideration the attached proposed Fourth Amendment to the Lease that includes a reduction in the required Percentage Rental to be applied retroactively beginning on August 1, 2019 and continue thereafter throughout the Term of the Lease, that will reduce the Percentage Rental from five percent (5%) of Lessee's Annual Gross Revenues above $265,000 to six-point five percent (6.5%) of Lessee's Annual Gross Revenues above $450,000, and extend the Term of the Lease three years through July 31, 2023.

RECOMMENDATION: It is hereby recommended that the Sarasota Manatee Airport Authority approve the proposed Fourth Amendment to the General Ground Lease with Suncoast Golf, LLC. as presented.

ATTACHMENTS: Fourth Amendment to General Ground Lease with Suncoast Golf, LLC.