| | | | | | | | CITY OF OAKLAND PARK, FLORIDA
CITY COMMISSION AGENDA ITEM REPORT
AGENDA ITEM NO. 13 | | MEETING DATE: 8/3/2022 |
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| | | | | | | | | PREPARED BY: | Steven Tinsley, PhD, MBA, CEcD
Assistant Director | DEPARTMENT HEAD APPROVAL: | ECD - Planning |
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| | | | | | | | | SUBJECT: Proposed Alternative to Parking Agreement with Greenwheel LLC (G21 Fitness) |
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| | | | | | | | | 1. | BACKGROUND/HISTORY
| | | Issue Statement: On May 20, 2022 Greenwheel, LLC (G21 Fitness) submitted a written request to the City seeking a Fifth Amendment to its Payment in Lieu of Parking Agreement due to the continuing impacts of rising labor costs as well as personnel and industry issues resulting in the halting of a new line of business and the loss of associated projected revenue.
On July 20, 2022, the City Commission deferred action on the deferral request and directed staff to negotiate an alternative to the current Payment in Lieu of Parking Fee agreement with Greenwheel, LLC (G21 Fitness), including a good faith payment. The Commission also requested that the item be included as part of the agenda for the August 3, 2022 Commission meeting. Representatives of Greenwheel, LLC have submitted a proposal.
Recommended Action: The City Commission review and consider the proposed alternative structure to the Payment in Lieu of Parking agreement from Greenwheel, LLC (G21 Fitness).
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| | | | | | | | | 2. | CURRENT ACTIVITY
| | | On July 20, 2022, the City Commission requested that an alternative structure to the current Payment in Lieu of Parking Fee agreement, that would include a good faith payment, be brought back for Commission review and consideration. Greenwheel, LLC has submitted a proposed alternative to the current Payment in Lieu of Parking Fee agreement with the City. The agreement would result in the following payment schedule:
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Year
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Monthly Payment
(Due on the 1st Day of Each Month following execution of the Amendment)
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Annual Total
of Payments
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1
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$833.33
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$9,999.96
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2
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$833.33
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$9,999.96
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3
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$833.33
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$9,999.96
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4
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$833.33
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$9,999.96
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5
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$833.33
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$9,999.96
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6
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$833.33
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$9,999.96
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7
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$833.33
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$9,999.96
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8
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$833.33
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$9,999.96
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9
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$833.33
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$9,999.96
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10
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$833.33
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$9,999.96
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11
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$833.33
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$9,999.96
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12
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$833.33
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$9,999.96
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13
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$833.33
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$9,999.96
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14
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$833.33 (Final Payment: 833.89)
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$10,000.52
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Total of All Payments
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$140,000
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Should commission accept the proposed alternative structure, a Fifth Amendment to the Payment in Liew of Parking agreement would be brought for Commission review and approval. Should the agreement be amended, staff suggests the inclusion of administrative and late payment fees.
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| | | | | | | | | 3. | FINANCIAL IMPACT
| | | Under the proposed alternative Payment in Lieu of Parking Fee agreement, Greenwheel LLC will be required to pay the total amount of $140,000 in monthly installments of $833.33, scheduled to begin the first day of each month following execution of the Amendment, resulting in annual payments of $9,999.96 over 13 years, with a payment in the final (14th) year of the agreement of $10,000.52, for a total amount of $140,000. |
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| | | | | | | | | 4. | RECOMMENDATION
| | | The City Commission review and consider the proposed alternative structure to the Payment in Lieu of Parking agreement from Greenwheel, LLC (G21 Fitness).
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