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Item #02 Approval of Lease Agreement for 15 South Kissimmee Avenue t ocloee florida AGENDA ITEM COVER SHEET Meeting Date: July 19, 2016 Item # Reviewed By: Contact Name: Craig Shadrix Department Director: Contact Number: City Manager: 41/3 . Subject: Lease Agreement for 15 S. Kissimmee Avenue Background Summary: At the June 21, 2016 meeting of the Ocoee City Commission, a group of soccer experts from the Zico Soccer Academy LLC presented a plan to establish a premier soccer academy in the City of Ocoee. Zico Soccer Academy LLC is a company established by Brazilian soccer legend Arthur Antunes Coimbra (aka Zico) dedicated to teaching soccer from beginning to elite levels. This plan would initially result in a series of camps during the summer, but is expected to intensify over time. Zico Soccer Academy LLC proposed two items associated with the soccer academy and future plans of establishing an educational institution with an elite soccer academy: Item (a): Zico Soccer Academy LLC proposed to lease the two small city-owned office buildings located at 15 S. Kissimmee Avenue for 2 to 3 years. The City Commission entertained some discussion about the state of these buildings and the proposal before you is for the renter to make the necessary improvements to the two buildings sufficient for them to establish an office presence in the City, which would house the academy support and outreach staff. The Charter requires a fair market rental amount for lease of real property owned by the City. Due to the condition of the buildings, it is proposed that the total amount of dollars expended by Zico Soccer Academy LLC to improve the property be deducted from the fair market rental amount. Item (b) is for the Zico Soccer Academy LLC to be granted use of the soccer fields located at the City's Jim Beech Center for use in the camp. The cost of rental of the fields for the times proposed for use is a total of $5700. Zico Soccer Academy LLC has indicated willingness to help in improving the turf management of the fields and has proposed that funds expended in any such improvements be applied against the rental cost of $5700. Issue: Should the Honorable Mayor and City Commission authorize (a) staff to negotiate and execute a fair market lease for 15 Kissimmee Avenue after consideration of the proposed improvements to be made by Zico Soccer Academy LLC and, (b)the rental of the soccer fields at the Jim Beech Center? Recommendations Staff recommends approval for (a) staff to negotiate and execute a fair market lease for 15 Kissimmee Avenue after consideration of the proposed improvements to be made by Zico Soccer Academy LLC and, (b) the rental of the soccer fields at the Jim Beech Center. Attachments: Financial Impact: The lease agreement for the City Property at 15 S. Kissimmee Avenue would range from zero to some revenue depending on the construction renovation costs incurred by the lessee. The soccer agreement will have no net financial impact due to the proposed arrangement. Type of Item: (please mark with an "x, Public Hearing For Clerk's Dept Use: Ordinance First Reading X Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by 0 N/A 2