HomeMy WebLinkAboutItem 05 Approval of Second Amendment to Lease Agreement with TNXL Baseball Academy
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: December 17, 2024
Item #: 5
Contact Name: Mark Johnson Department Director: Mark Johnson
Contact Number: Ext. 5002 City Manager: Craig Shadrix
Subject: Approval of Second Amendment to Lease Agreement with TNXL Baseball
Academy. (Parks and Leisure Services Director Johnson)
Background Summary:
TNXL Baseball Academy (“TNXL”) opened its Ocoee doors in 2019, with approximately 50 high school
baseball players in their program. In the five years since opening, TNXL has had every player that has
graduated either commit to play at the college level with seven (7) players drafted by Major League
Baseball. Hosting professional scouts and college coaches at all levels, TNXL has put Ocoee on the baseball
map and has become the #1 high school baseball academy in the United States. In 2024, the academy
increased its enrollment to 110 athletes, and expanded to four teams within the organization, which won the
Premier Division Championship of the NAA Conference in 2024.
On July 18, 2019, the City Commission approved a Lease Agreement with TNXL to allow the construction of a
baseball training facility and use of the fields at Sorenson Park. On July 21, 2020, the City Commission
approved the First Amendment to the Lease Agreement allowing TNXL Academy to add a permanent
structure to Sorenson Park. Currently, TNXL Academy pays a lease cost of $4,057.46/month. Under the new
proposal, TNXL Academy is making a capital investment of $640,000. The proposed amendment allows the
operator to recover their costs while saving the city an additional $50,000/year in utility and maintenance
costs. The proposed amendment will not impact or change the current use of the fields by the city or city-
sponsored leagues (Little League). With the increase in notoriety and as a next step in the growth of the TNXL
Academy, TNXL is requesting to improve Sorenson Park into one of the best youth baseball facilities in central
Florida. TNXL is requesting to make improvements to Sorenson Park in order to improve the baseball
facilities. The improvements planned and funded are: i) upgrade both the Senior and Junior ball fields to a
synthetic turf infield, ii) raise the outfield fencing on the junior field ($25,000), iii) add netting on the junior fields
($50,000), and other additional upgrades as listed below. With these upgrades, TNXL Academy is requesting
a Second Amendment to the Lease Agreement with the following terms:
1. Extend the terms an additional 10 years with an automatic renewal of 5 years,
2. Upgrade both the Senior and Junior ball fields to a synthetic turf infield at a cost of $640,000,
3. Convert the lease to a Triple Net Lease which will require TNXL Academy to pay all expenses including
taxes, maintenance and all utilities,
4. A revised lease rate to a new $1,500/month lease amount with 5% increase each year plus they pay the
real estate taxes and perform all maintenance,
5. Pay all utility costs,
6. Raise the fence and add netting on the Junior Field ($75,000),
7. Laser Level and re-sod both outfields (Approx. $75-100K); and
8. Parties wishing to terminate the agreement will do so in writing 60 days prior to expiration. At the
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
termination of the lease, the amendment will allow the City to elect to retain the facility upgrades constructed
on-site.
Issue:
Should the Honorable Mayor and City Commissioners approve the Second Amendment to the Lease
Agreement and authorize the Mayor and City Clerk to execute the amendment?
Recommendations:
Staff recommends that the Honorable Mayor and City Commissioners approve the Second Amendment to the
Lease Agreement and authorize the Mayor and City Commission to execute the amendment.
Attachments:
1. Second Amendment to Lease Agreement- TNXL
Financial Impacts:
The base amount of the Lease Agreement will be $1,500.00 plus an annual increase of 5%. TNXL Academy
will also be required to pay the taxes, insurance and any maintenance costs over the fifteen-year agreement.
Type of Item: Consent
SECOND
AMENDMENT TO
LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE AGREEMENT ("Second Amendment") is made
and entered into on this day __ in ____ 202_, by and between the CITY OF OCOEE, a Florida municipal
corporation, whose address is 1 Bluford Ave, Ocoee, FL 34761 ("Landlord" or “City”), and TNXL
ACADEMY DUCKS LLC, a Florida limited liability company, whose address is 707 Chase Oaks Court,
Winter Garden, Florida 34787 ("Tenant").
RECITALS
A.Whereas, Landlord and Tenant entered into a Lease Agreement effective July 1, 2019, as
amended by the First Amendment to Lease Agreement dated August 4, 2020 (collectively the
"Lease"); and
B.Whereas, Landlord and Tenant desire to amend the Lease to include provisions regarding taxes,
utilities, improvements, rent, field usage, and other terms, as detailed below; and
C.Whereas, Landlord and Tenant have agreed to extend the Lease.
NOW, THEREFORE, for and in consideration of the foregoing, the mutual promises, covenants,
and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:
1.Capitalized Terms. All capitalized terms not defined in this Second Amendment shall have the
same meanings ascribed to them in the Lease.
2.Term and Renewal. The Lease term shall be extended for an additional 10 years, commencing on
January 1, 2025, with one automatic 5-year renewal unless either party provides written notice of
non-renewal at least 60 days prior to the expiration of the term.
3.Rent: Effective January 1, 2025, the monthly rent shall be a base rent of $1,500.00. The base rent
shall increase annually by 5%, effective on the anniversary of the commencement date of this
Second Amendment.
4.Triple Net Lease (NNN): In addition to the base rent, Tenant shall be responsible for all Triple
Net Lease obligations. This includes, but is not limited to, the following expenses:
Real Estate Taxes for the leased premises;
Maintenance of the leased premises, including repairs and upkeep;
Utilities used on the premises, including water, electricity, and any other services or
utilities.
5. Additional Costs: These Triple Net obligations are in addition to the base rent of $1,500.00 per
month and shall be paid by Tenant directly to the applicable parties or as otherwise instructed by
the Landlord. These costs shall be paid monthly, in addition to the base rent, and may be subject to
periodic adjustments as outlined in the lease agreement.
6.Facility Improvements and Maintenance.
a.Tenant shall invest $640,000 for turfing the infields on the two fields (Senior and Junior)
at Bob Sorenson Park.
b.Tenant shall, at Tenant’s sole cost and expense, laser level and re-sod both outfields with
natural grass by the summer of 2025.
c.Tenant shall, at Tenant’s sole cost and expense, raise the Junior Field fence by an additional
6 feet.
d.Tenant shall, at Tenant’s sole cost and expense, add netting along the first base line of the
Junior Field.
e.Any additional costs related to field maintenance or insurance required due to Tenant’s
activities shall be borne by Tenant.
f.Tenant shall mow outfield turf for all fields a minimum of three times a week, empty trash
cans on the facility grounds daily, coordinate to have the trash picked up on facility grounds
daily, maintain the landscape around the building in good condition, including but not
limited to weed-eating the fence line, and maintain the windscreen on the facility ground
fences.
g.The Lessor may perform periodic maintenance inspections and require the Lessee to take
action when necessary.
7.Field Usage Schedule.
Junior Field:
•Monday – Friday:
o 8:00 AM – 5:00 PM: TNXL Academy
o 5:00 PM – 10:00 PM: City of Ocoee (Tenant may reserve with 48-hour notice)
•Saturday & Sunday:
o 8:00 AM – 10:00 PM: TNXL Academy & Little League (Landlord may reserve
with 48-hour notice)
Senior Field:
•Monday – Friday:
o 8:00 AM – 5:00 PM: TNXL Academy
o 5:00 PM – 10:00 PM: City of Ocoee
•Saturday & Sunday:
o 8:00 AM – 10:00 PM: TNXL Academy & Little League (Landlord may reserve
with 48-hour notice)
8.Termination of Lease. Either party wishing to terminate the Lease shall do so in writing at least
60 days prior to the expiration of the term. Upon termination, the City shall have the right to retain
any facility upgrades constructed by Tenant on the premises. Any remaining balance of unpaid rent
or property tax reimbursement shall be immediately due and payable.
9.Notice. Section 17 of the Lease is hereby replaced in its entirety with the following:
17. Any notice, request, consent, approval, demand, or other communication required or permitted
to be given or served by either party to this Lease to or on the other shall be given or served and
shall not be deemed to have been duly given or served unless in writing and delivered: (a) in person;
(b) by overnight courier; or (c) by certified or registered mail, return receipt requested, to the
following addresses or to such other addresses as may be specified from time to time, in writing,
delivered to the other party as provided herein:
To Landlord:
City of Ocoee
Attn: Craig Shadrix, City Manager
1 Bluford Ave,
Ocoee, FL 34761
With a copy to:
Fishback Dominick
Attn: Paul “JJ” Johnson
1947 Lee Road
Winter Park, FL 32789
To Tenant:
TNXL Academy Ducks LLC
707 Chase Oaks Court
Winter Garden, Florida 34787
10. All provisions of the Lease not modified (whether explicitly or implicitly) by this Second
Amendment will remain in full force and effect according to their terms. This Second Amendment
and the Lease shall be construed as a single document and shall be collectively referred to as the
“Lease” or this “Lease,” except to the extent the terms of this Second Amendment conflict or are
inconsistent with the terms of the Lease, in which case this Second Amendment will control. Each
term used in this Second Amendment will have the same meaning as was given or intended in the
Lease, unless such is specifically defined differently herein. This Second Amendment may be
executed in any number of counterparts, each of which shall be deemed to be an original and all of
which shall, together, constitute one and the same instrument. This Second Amendment, signed
and transmitted by facsimile, shall be deemed to be and shall be treated as an original document
for all purposes, and shall be considered to have the same binding legal effect as an original
signature on an original document. This Second Amendment shall take effect upon execution and
delivery by both Parties.
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IN WITNESS WHEREOF, Landlord and Tenant have caused this Second Amendment to
Lease Agreement to be duly executed by their respective duly authorized officer or agent.
Witnesses:Landlord:
______________________________________CITY OF OCOEE, FLORIDA
a Florida municipal corporation
Print: _________________________________
______________________________________
By:
___________________________________
Name:
_________________________________
Print: _________________________________Title:
_________________________________
Witnesses:Tenant:
______________________________________TNXL ACADEMY DUCKS LLC, a Florida
limited liability company
Print: _________________________________
By:
____________________________________
______________________________________
Print: _________________________________