Item Coversheet

CITY OF OAKLAND PARK, FLORIDA
CITY COMMISSION AGENDA ITEM REPORT


A
GENDA ITEM NO. 17

MEETING DATE: 9/7/2022
PREPARED BY: 

Steven Tinsley, PhD, MBA, CEcD
Assistant Director of Community and Economic Development

 

Peter Schwarz, AICP

Director of Community and Economic Development

DEPARTMENT HEAD APPROVAL:  CED Planning
SUBJECT: A Resolution Authorizing the execution of a Fifth Amendment to the Payment in Lieu of Parking Agreement with Greenwheel LLC (G21 Fitness).
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. 

 

On August 3, 2022, the City Commission gave consensus to an alternative structure to the Payment in Lieu of Parking Agreement as proposed by Greenwheel, LLC (G21 Fitness), resulting in monthly payments by Greenwheel for a period of 14 years, totaling $140,000 to the City, with staff recommendations for incorporation of administrative and late fees into the Agreement.

 

Recommended Action: The City Commission adopt a resolution authorizing the execution of the Fifth Amendment to the Payment in Lieu of Parking Agreement with Greenwheel, LLC.

 

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 Downtown and mobility were presented to the City Commission. On March 21, 2018, the new Downtown 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.

At the request of Greenwheel, 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. In 2020, the City received an additional request for deferral and entered into a Third Amendment to the Agreement 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, per their request due to financial difficulties associated with COVID-related social distancing requirements and rising labor costs.

2.CURRENT ACTIVITY
    
 

Greenwheel, LLC is requesting a Fifth Amendment to the Payment in Lieu of Parking Agreement with the City resulting in monthly payments by Greenwheel for a period of 14 years, totaling $140,000 to the City, with staff recommendations for incorporation of administrative and late fees into the Agreement.

3.FINANCIAL IMPACT
    
 

Under the Fifth Amendment, Greenwheel, LLC will be required to pay the total amount of $140,000 over 14 years, with monthly payments of $834.00* scheduled to begin on October 18, 2022.  An annual administrative fee of $250.00 will be added in Years 1-4. In Year 5, the annual administration fee will increase to $300.00, and in Year 10 this fee will increase to $350.  Failure to adhere to the monthly payment schedule will result in a $50 late fee for any payment received more than 10 calendar days following the due date.

 

Year

Monthly Fee Payment

Annual Fee Payment

Administrative Fee

1

$834.00

$10,008.00

$250.00

2

$834.00

$10,008.00

$250.00

3

$834.00

$10,008.00

$250.00

4

$834.00

$10,008.00

$250.00

5

$834.00

$10,008.00

$300.00

6

$834.00

$10,008.00

$300.00

7

$834.00

$10,008.00

$300.00

8

$834.00

$10,008.00

$300.00

9

$834.00

$10,008.00

$300.00

10

$834.00

$10,008.00

$350.00

11

$834.00

$10,008.00

$350.00

12

$834.00

$10,008.00

$350.00

13

$834.00

$10,008.00

$350.00

14*

$824.67

$9,896.00

$350.00

Totals

$140,000.00

$4,250.00

*Final Payment of $824.67

 

4.RECOMMENDATION
    
 The City Commission adopt a resolution authorizing the execution of the Fifth Amendment to the Payment in Lieu of Parking Agreement with Greenwheel, LLC.
ATTACHMENTS:
Description
Resolution
Request for Deferral
First Amendment
Second Amendment
Third Amendment
Fourth Amendment
Proposed Fifth Amendment