Issue Statement: Greenwheel LLC is requesting a Fifth Amendment to its Payment in Lieu of Parking Agreement to defer the initiation of the repayment period due to the impact of the coronavirus pandemic and the economy on operations of the business (G21 Fitness).
Recommended Action: The City Commission consider adopting a resolution authorizing the execution of a Fifth Amendment to the Payment in Lieu of Parking Fee agreement with Greenwheel, LLC (G21 Fitness).
Background: On May 17, 2017, the City Commission authorized staff to execute a Payment in Lieu of Parking agreement with Greenwheel, LLC, for the G21 Fitness facility located at 3400 NE 11th Avenue and 3401 N. Dixie Highway. As the City's Downtown parking analysis was then ongoing, the conditions of the agreement were based on the existing Parking Ordinance which required Greenwheel to pay $450,000 for 30 parking spots at the rate of $15,000 per spot.
On January 3, 2018, recommended changes to the Land Development Code related to the DMUD and mobility were presented to the City Commission. On March 21, 2018, the new DMUD Parking Ordinance and a related incentive resolution were passed by the City Commission. The new regulations replaced the Parking Fee with a Mobility Fee, requiring a $7,000 per parking space fee, adjusted the method of calculating required parking to 4 spots per 1000 square feet of commercial space, and provided for incentives that included a nine year amortization for payments and a deferral period.
On July 18, 2018, the City Commission approved the First Amendment to the Agreement with Greenwheel to bring the contract in line with the updated Downtown Parking Code. Pursuant to the First Amendment, Greenwheel is required to pay the total amount of $140,000 amortized over a period of nine (9) years with a two year deferral of the payment. The payments were scheduled to begin two years from the date the first Certificate of Occupancy (C.O.) was issued for the first building. The C.O. was issued July 18, 2017; therefore, annual payments were scheduled to begin on July 18, 2019.
Due to delays in establishing the business and drawing clientele, the City adopted the Second Amendment to the Agreement with Greenwheel on July 17, 2019 postponing the start date for annual payments to July 18, 2020. The City adopted the Third Amendment to the Agreement with Greenwheel on July 22, 2020 postponing the start date for annual payments to July 18, 2021.
On July 21, 2021, the City Commission authorized execution of a Fourth Amendment to the Agreement with Greenwheel, postponing the start date for annual payments to July 18, 2022, due to financial difficulties associated with COVID-related social distancing requirements and rising labor costs.