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HomeMy WebLinkAboutItem 05 Approval of First Amendment to Parking Lease Agreement — 137 W. McKey Street & 120 W. Oakland Ave City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: June 16, 2026 Item #: 5 Contact Name: Brett McFarlane Department Director: Nick Lepp Contact Number: Ext. 7145 City Manager: Craig Shadrix Subject: Approval of First Amendment to Parking Lease Agreement — 137 W. McKey Street & 120 W. Oakland Ave. (Community Development Administrator McFarlane) Background Summary: At the December 5, 2023, City Commission meeting, the City Commission approved a Parking Lease Agreement between the City and VMG Investment Development, LLC. This Agreement authorizes the City to utilize the properties located at 137 W. McKey St and 120 W. Oakland Ave, comprising approximately 25,000 square feet of parking spaces and drive aisles, for public parking purposes. Under the terms of the Agreement, the City agreed to compensate VMG in the amount of $292.00 per month, with a 3% annual increase. The term of the Agreement was for a period of 2 years, with an option to extend for an additional two-year period. On January 21, 2026, City staff formally notified VMG Investment Development, LLC of the City’s intent to exercise the two-year extension option provided in the Parking Lease Agreement. VMG has agreed to extend the lease, contingent upon an increase in the monthly payment to $450.00 ($5,400.00 annually) to offset rising property taxes, insurance, and general administration costs associated with the properties. The continued availability of these parking facilities provides significant benefits to the City, its residents, and Downtown business patrons. Issue: Should the Honorable Mayor and City Commission approve the First Amendment to the Parking Lease Agreement drafted by City staff for the use of 137 W. McKey St. and 120 W. Oakland Ave. owned by VMG Investment Development LLC, as a temporary public parking lot? Recommendations: Staff recommends that the Honorable Mayor and City Commission approve the First Amendment to the Parking Lease Agreement drafted by City staff for the use of 137 W. McKey St and 120 W. Oakland Ave. owned by VMG Investment Development LLC, as a temporary public parking lot. Attachments: 1. Agreement Financial Impacts: An annual payment of $5,400.00 to VMG Investment LLC is equal to the cumulative amount of property taxes assessed for the two (2) properties plus administrative fees funded in GL# 001-515-00-3128. City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org Type of Item: Consent 1 FIRST AMENDMENT TO PARKING LEASE AGREEMENT This First Amendment to Parking Lease Agreement (“Amendment”) is made as of June 16, 2026, between VMG Investment Development LLC, a Florida Limited Liability Company (“Landlord”) and the City of Ocoee, a Florida municipal corporation (“Tenant”) (collectively, the “Parties”). Background Facts A. The Parties entered into that Parking Lease Agreement dated February 1, 2024 (the “Agreement”), which provides for the Landlord renting certain Premises to the Tenant. B. The Tenant desires to provide notice through this Amendment of its intent to extend the lease for an additional two years as described in Section 3 of the Agreement. C. The Parties desire to amend the Agreement. The Agreement, as amended by this First Amendment, will collectively be referred to as the “Agreement.” Agreement NOW, THEREFORE, in consideration of the mutual covenants and promises made in this Agreement and for other good and valuable considerations, the Parties agree as follows: 1. Capitalized terms used but not defined in this Amendment will have the definitions set forth in the Agreement. 2. Section 3 of the Agreement is revised as follows: a. Tenant agrees to pay the Landlord rent in the sum of $5,400 per year. Rental payments shall be made yearly, being due and payable on or before the first day of the month in which the Agreement is executed, unless otherwise specified and agreed upon by both Parties. 3. Except as modified by this Amendment, the Parties ratify the terms of the Agreement. This 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 Amendment, signed and transmitted by facsimile or electronic mail, 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 Amendment shall take effect upon execution and delivery by both Parties. [SIGNATURES TO FOLLOW] 2 LANDLORD: VMG Investment Development LLC By: Title: Date: 3 TENANT: CITY OF OCOEE, FLORIDA By: Rusty Johnson, Mayor ATTEST: Melanie Sibbitt, City Clerk (SEAL) APPROVED BY THE CITY OF OCOEE COMMISSION AT A MEETING HELD ON _____________________ ______, 20___ UNDER AGENDA ITEM NO. ____ FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this ____ day of ________________, 20__. FISHBACK DOMINICK By: __________________________ Richard Geller, City Attorney