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Consideration of Options for Lease of Coast Guard Auxiliary Building by the Hernando Beach Marine Group
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BRIEF OVERVIEW
Currently, Hernando County has a lease agreement with the Hernando Beach Marine Group, Inc., for property located at 4340 Calienta Street in Hernando Beach, which lease is set to expire on July 27, 2030.
On November 29, 2022, background information on the lease was requested to understand how lease could be modified. The history of the lease agreement with the Hernando Beach Marine Group, Inc., is as follows:
On July 27, 1977, a lease agreement was entered into between the West Hernando County Water and Sewer District (the predecessor in interest to the Hernando County Water and Sewer District, which will be referred to as the "County") and Hernando Beach Flotilla - 8, Inc. (the former name of Hernando Beach Marine Group, Inc., which will be referred to as "HBMG"). The agreement was a 20-year lease of vacant land with a yearly rent of $0, which was only to be used as a "civic building."
On November 1, 1979, a lease modification was entered into between the County and HBMG. The lease modification extended the original term to a 40-year lease term that would have expired on July 27, 2017.
On March 1, 1982, a new lease was entered into between the County and HBMG that replaced, in full, any prior lease between the parties. The lease kept the original expiration date of July 27, 2017, and had the following provisions: (1) $1.00 per year rent; (2) HBMG pays all taxes, assessments, or other public charges on the property and the rent paid; and (3) HBMG was required to have "comprehensive public liability insurance covering the premises and its appurtenances in the amount of $100,000 for bodily injury of any one person, $100,000 for bodily injury in one occurrence and property damage insurance in the amount of $25,000. Such insurance shall specifically insure Lessee against all liability imposed by law and shall insure both...
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