Background:

The City is requesting the City Council approve a modification to the Marina Uplands Ground Lease Agreement between the City of Riviera Beach and the Riviera Beach Community Redevelopment Agency (The “CRA”) July 29, 2014.  The modification provides that the City shall be responsible for the payment to the CRA of Operating Costs, for Bicentennial Park and identified Common Areas of the City Marina Uplands Property.                  

Summary

The purpose of the modification to the original Marina Uplands Ground Lease Agreement for the City Marina Uplands to provide that the City shall be responsible for the payment to the CRA of  Operating Costs for Bicentennial Park, and  a share of the Common Areas of the City Marina Uplands Property.  The modified language says that the City shall be responsible for the payment of all actual costs and expenses (the “Operating Costs”) of every kind and nature paid or incurred by the Agency, as approved through the annual budget process for operating, managing, equipping, securing, policing, protecting, providing sanitation and sewer and other services, lighting, securing, policing, protecting, providing sanitation and sewer and other services, lightning, insuring (including self-insurance and the payment of deductible amounts under insurance policies), repairing, replacing and maintain (a) the Common areas, (b) all other areas, facilities, and buildings used in the maintenance and operation of the City Marina Property and Bicentennial Park.  

Fiscal Impact

The projected total Operating Costs or CAM (Common Area Maintenance) expenses for Riviera Beach Marina Village, Inclusive of Bicentennial Park, Parcels A, B, C, D1 & D2 and Seawall/Dock Promenade, fiscal year 2016 is $723,172.87 or $60,264.41 per month and it was previously proposed to be paid by the CRA as the master tenant.  The sum now represents the City’s proportional share of the development parcels within the Bicentennial Park and Marina Uplands areas (Exhibit A).  The City’s expectations should be that as additional elements of the Riviera Beach Marina Village project are bought on-line up to and including; Public Market, Restaurant Row, Paid Parking, Marina Way Project and Market Court, that the City’s proportional share of operating costs will decrease.