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021990-Work Session594 MINUTES City Commission, Sanford, Florida February 19, 1990 The City Commission of the City of Sanford, Florida, met in Work Session in the City Manager's Conference Room on February 19, 1990, at 4:00 o'clock P. M. Present: Mayor-Commissioner Bettye D. Smith Commissioner Whitey Eckstein Commissioner Robert B. Thomas Commissioner Lon K. Howell City Manager Frank A. Faison Acting City Attorney Michael Gray City Clerk Janet R. Donahoe Absent: Commissioner A. A. McClanahan City Attorney William L. Colbert The meeting was called to order by the Chairman. The first item of business was a presentation on the architect's plan for addition to General Sanford Museum and Library. Tommy Peterson appeared and reported this is an ambitious program, which will incur additional annual costs as a result of the program. Further, the Library-Museum Board would like a $200,000.00 pledge from the City, and will try to obtain state funds, and county tourist tax funds, to augment City of Sanford funds. Also, the deadline to apply for tourist tax funds is April 15th, and the request probably won't be authorized unless the City agrees to support the project. Keith Reeves, Architects Design Group, appeared and reported his contract includes a Space Needs Analysis and Master Planning, and he has conducted the Space Needs Analysis. There is now 2,400 square feet of-improved space, and 7,800 square feet is needed to make a viable museum for the City now. The Henry Shelton Sanford Library will stay intact. The addition would increase the Henry Shelton Sanford Museum; add 1,000 City of Sanford Museum; and add a 400 square foot area for a traveling Reeves estimated the total cost for the 7,800 square foot facility square feet for a exhibit space. Mr. would be at least $1,230,000.00. The total $1.6 to 1.7 million after the addition. Mr. Reeves reported that City funding value of the museum phYsical plant would be would not be needed until after October, 1991, and that grant funds and tourist tax funds will be obtained prior to asking the City to allocate funds. Further, if the City agrees to allocate only $100,000.00, it will be difficult to raise the rest of the funds. The Director of Engineering and Planning reported on the possibility of doing the project in two or three increments, depending on the amount of money available at given times. That way, there would be good flexibility for the Library-Museum Board to work with whatever level of support the City could Further, the tourist tax funds, if October of next year. The City Manager recommended give, rather than fund it all in one year. received in April, would have to be allocated by the Capital Impr6vement Plan be reviewed in June Budget Meetings, and the Commission could decide then whether to fund the museum expansion. Further, if it is funded today, the funding would need to be from reserves. The Commission authorized to place said funding request on the February 26, 1990 Late Agenda. MINUTES City Commission, Sanford, Florida February 19, 595 The next item of business was consideration of proposal from Seminole Isle Properties, Inc., (Holiday Inn) for lease amendment and handling the debt. ThOse persons present to support the request were Peter Hill, Jeff Blackstone, and Wallace Schoettelkotte. Peter Hill appeared to discuss a proposal for modification of the existing lease, which he stated is approximately 23 years old, and calls for no rent payments the first five years, followed by a base rent of $5,000.00 and 29% of all revenues. Then, in the 21st year, the percentage changes from 29% to 5%. Mr. Hill reported that 5% across the board is not industry standard, that the present ownership of the hotel is not able to support 5% across the board, and that no one else owning that property could support 5%, and proposed to modify the lease to 3% for room, 1% for food, and 1% for beverages, and to pay $5,000.00 base rent. Mr. Hill further reported arrearages owed to the City at the end that Holiday Inn (Seminole Isle Properties, Inc.) of 1988 were $87,157.47, and that Seminole Isle Properties, Inc., proposes to cure those arrearages, and 1989 revenues, over a period of time as follows: the 1989 rent figures based on February 26, 1990· position for the accomplish. · $25,000 lump' sum payment on or before April 30, 1990.. · Similar lump sum payment on or before the 30th of each subsequent year until cured. Also, Seminole Isle Properties, Inc., will agree to make cure payments on a monthly basis, as requested by Mike Gray. Mr. Hill asked that revenue generated from phones and miscellaneous items not be included in the percentage calculations, since these are offered as an accommodation to hotel guests, and are not profit-producing endeavors. Mr. Hill reported that Seminole Isle Properties, Inc., is involved in a Chapter 11 Bankruptcy re-organization case, and intends to file a motion to assume the lease with the City, and that said motion will _.address the cure of arrearages as stated above. Further, said motion must be filed on or before February 26, 1990. Jeff Blackstone appeared and stated they want to retain exclusive food and beverage rights in their lease, that the hotel's restaurant is not a major money-making entity, and the restaurant does not charge as much as a free-standing restaurant would; therefore it only makes 5% to 6% of bottom, line. The City Manager recommended the lease be amended to 3% rooms, 1% food, and 2% beverage, retroactive to 1988, recognizing the City's contract of December, 1988, since up until about a year ago when Great Southern filed foreclosure, the City and Seminole Isle Properties were close to agreeing on lease amendments, and to authorize the City Attorney to file said proposal with the bankruptcy court, subject to City Commission approval on The City Manager further recommended the proposal as being a prudent City, and something which Seminole Isle Properties, Inc., could Mr. Blackstone stated he agreed with the City Manager's recommendation. 596 MINUTES City Commission, Sanford, Florida February 19, 19 90 Mr. Schoettelkotte stated he also agreed with the City Manager's recommendation, and to show good faith, he would instruct Bill Hutchison, Attorney, to write a letter to the City, that Seminole Isle Properties, Inc., will put $25,000.00 in escrow by February 20 or 21, 1990. Commissioner Eckstein reported he is not does want Seminole Isle Properties, Inc., to pay opposed to the 3-1-1 proposal, but he back arrearages owed to the City, and proposed they could pay the arrearages over a 10 year period, with interest. Mike Gray reported that it will be up to Seminole Isle Properties, Inc., not the bankruptcy judge, to accept or: reject the City's lease terms, and that it is in the City's best litigous interest to make its determination as early as possible. (Commissioner McClanahan present at 5:10 P. M.) Mr. Gray further reported he felt the City has some very strong arguments to prevail, that the agreed-upon monies will be paid or the bankruptcy will be over, and that there appears to be enough cash flow for them to make the proposed payments. The City has the opportunity to get money owed to it, and, at a minimum, the opportunity to forestall foreclosure by Great Southern on the City's ownership interest. If the City prevails on the subordination issue, Great Southern could only take improvements, and could not get fee title. The Commission authorized to place the lease proposals on the February 26, 1990 Late Agenda. The Commission next considered Park on Park Phase III, a Scenic Improvement Board project. Martha Yancey, Scenic Improvement Board Chairman, appeared and reported Phase III includes restrooms and lights. Also, they have over $10,000.00 left from the playground construction, and they received a $4,000.00 check from the Woman's Club, earmarked for the restrooms. Danny Lee appeared and explained the proposed restroom and light project, and reported that the Paralyzed Veterans of America has donated $5,000.00 toward Phase III, because the park is handicapped accessible, and a citizen has pledged $500.00 for the water fountain. Further, the restrooms would be located on the north side of the park property, and be similar to those at Fort Mellon Park, with a water fountain. Mr. Lee further reported they would supply all material up through the lintle stage, and people on the committee would donate masonry, steel, block, and stucco. The Scenic Improvement Board would pay for all materials asked that City workers perform the construction and requested waiver of the water and sewer tap fees. in addition to those donated, and water and sewer taps. Mr. Lee The Commission agreed on concrete block construction, with wood on the outside so that the restrooms blend in with the rest of the park, and authorized to discuss park hours in the near future. The City Manager recommended the City's General Fund (Parks Department) pay the tap fees. MINUTES City Commission, Sanford, Florida Feb_ r~_~sry 19~ 597 19 90 The Commission authorized to place consideration of Park on Park Phase III on the February 26, 1990 Late Agenda for approval of the concept, and authorization for Staff to proceed with City (Scenic Improvement Board) funds, and donations. The Commission next considered the Persimmon Avenue Tree Plan, a Scenic Improvement Board project. Martha Yancey reported that about three years ago, the City Commission had approved $10,000.00 for a tree plan, and the Scenic Improvement Board is now recommending to the Commission that a portion of those funds be expended on the Persimmon Avenue Tree Plan. Ray Sage appeared and reported the plan includes planting 50 East Palatka Holley trees on both sides of Persimmon Avenue, for four blocks from Highway 46 to Auto Train. Further, he reported this is a very popular native tree, and 12 nurseries are unable to supply it. The Scenic Improvement Board found two nurseries who could supply them, in amount of $85.00 per tree in a 50 gallon container, and in amount of $135.00 per tree in a 50 gallon container. He stated these trees should be planted soon, and that bidding the trees would push the planting past the optimum planting time, and requested approval to purchase the trees from the nursery in amount of $85.00 each. The City Manager reported that City (Scenic Improvement Board) funds are available for the project, and that the City can plant the trees. The Commission authorized to place consideration of the Persimmon Avenue Tree Plan on the February 26, 1990 Late Agenda, for approval of the concept, including funding from City (Scenic Improvement Board) funds. There were no questions regarding the February 26, 1990 Regular Agenda. The Commission authorized to hold a Work Session at 4:30 P.M. on February 26, 1990, to receive the annual audit from Coopers & Lybrand. There being no further business, the meeting was adjourned. ¥OR