Subject:
Title
Approval of Site Management Terms for the Tenant at Doc’s Bait House (Bid B-2-21-57)
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Fiscal Impact:
FY 21-22 - Management Revenue of $23,244 annually, plus Fuel Site Income and
$25,000 Non-Refundable Deposit
FY 22-23 - Management Revenue of $23,244 annually, plus Fuel Site Income
Dept/Office:
Natural Resources Management Department
Requested Action:
Recommendation
Approval of Site Management Terms for Doc’s Bait House LLC as tenant for Doc’s Bait House (Bid B-2-21-57) and authorization for the Chair to execute a Management Agreement (lease) between Doc’s Bait House LLC and Brevard County upon final approval by the County Attorney’s Office, Risk Management, Purchasing Services and the State of Florida.
End
Summary Explanation and Background:
ln 2010, through funding provided by the State of Florida's Stan Mayfield Working Waterfronts Grant Program and the Florida lnland Navigation District (FIND), Brevard County acquired the working waterfront site, known as Griffis Landing at Blue Crab Cove, home to Doc’s Bait House.
On May 18, 2010, the Management Plan and the related Declaration of Restrictive Covenants for the site were approved by the Board. Operation and maintenance of the non-leased portions of the property, including electric and water services, landscape maintenance and general upkeep and oversight are the responsibility of the County and are estimated to be approximately $12,000 annually. All lease and use fees generated at the site are required to be reserved for reinvestment at the site.
Lease Restrictions imposed by the adopted Management Plan and the Declaration of Restrictive Covenants state that the Blue Crab Cove site is to be maintained as a working waterfront as defined in Section 380.503(18) Florida Statutes. The Doc's Bait House operations on site includes the 2,500 sq. ft. active bait house with retail fishing equipment sales and bar, the associated docks, parking and common areas.
On January 12, 2021, the Board of County Commissioners authorized staff to develop and advertise an Invitation to Bid and select the most suitable applicant to lease the Doc’s Bait House business at the Griffis Landing at Blue Crab Cove site. On May 27, 2021, Bid B-2-21-57 was released and the recommended award is to Doc’s Bait House LLC, the sole bidder. The Bid Tabulation sheet is attached. It should be noted that Doc’s Bait House LLC is the current tenant at Doc’s Bait House and has been a trusted vendor for over 10-years, since County acquisition of the site.
Specific agreement components for Doc’s Bait House management include:
• Tenant will pay a site management lease fee of $1937.00 monthly, $23,244 annually.
• Tenant will provide a $25,000 non-refundable deposit for interior and exterior improvements within 90 days of execution of the lease.
• A cost share arrangement and operational plan for the dispensing of fuel will be part of the site management agreement. The County’s share or revenues from fuel sales is presently estimated to be $0.31 per gallon.
• Tenant may use the premises for a retail bait shop serving the commercial and recreational fishing industry and the general public.
• Tenant currently holds and must maintain all required licensures and certifications for operation of the commercial retail and waterfront portions of the business (retail sales, alcohol/tobacco sales, saltwater products license, freshwater fish & frog dealer license)
• Tenant agrees that there will be no sale or preparation of food on the property without the written prior consent of the Owner.
• Tenant will provide certified support staff for the operation of the site’s pending waterfront fuel storage and dispensing system (Class A/B UST Operator Certification).
• Tenant shall pay all charges for electricity, telephone, natural gas, cable television, water and sewer services, waste removal service and all other utilities or services furnished to or required in or upon the premises during the term of this Lease.
• Tenant’s Management Agreement terms will be for one (1) term of five (5) years with an agreed upon option to renew for an additional five (5) year term.
• The tenant and their lease management agreement will acknowledge concurrence with the operational restrictions imposed by the adopted Management Plan and the Declaration of Restrictive Covenants.
This new site management agreement is 550% larger than the old agreement, increasing lease payments from $352 per month to $1937 per month, in addition to the $25,000 non-refundable deposit and pending revenue sharing from fuel sales at the site. Doc’s Bait House LLC has been working with the County on site improvements to the building and has paid for and installed a new air conditioner, has recently designed and is awaiting installation of new bait tanks in the building, and has ordered new coolers and sales upgrades for the interior of the building.
The Natural Resources Management Department requests approval of Site Management Terms for Doc’s Bait House LLC as tenant for Doc’s Bait House (Bid B-2-21-57). We request authorization for the Chair to execute a Management Agreement (lease) between Doc’s Bait House LLC and Brevard County upon final approval by the County Attorney’s Office, Risk Management, Purchasing Services and the State of Florida.
Clerk to the Board Instructions:
None