DATE: September 12, 2018
SUBJECT:
Title
ORDINANCE GRANTING AMENDMENT NO. 1 TO LEASE WITH DRISCOLL, INC. AT 2702 SHELTER ISLAND DRIVE TO EXTEND THE CONSTRUCTION COMPLETION DEADLINE OF THE LEASE TO JANUARY 1, 2019
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EXECUTIVE SUMMARY:
In September 2016, the District executed a lease1 with Driscoll, Inc. (Driscoll) located in America's Cup Harbor. The lease required Driscoll to complete construction of a boatyard by August 1, 2018. Although Driscoll was unsuccessful in meeting this requirement, significant progress has been made on the project with a limited number of construction improvements outstanding. The most significant cause of the project's delay is due to the unavailability of equipment and personnel to complete the waterside concrete finger piers. In addition to Driscoll already investing over $800,000 of the $1,000,000 project requirement, the District is at no financial loss due to the delayed project as Driscoll pays a flat monthly rent for this site which increased as of August 1, 2018. Given the significant progress of the project's completion, staff recommends Board approval of the Driscoll lease amendment to extend the construction completion deadline to January 1, 2019.
RECOMMENDATION:
Recommendation
Adopt an Ordinance granting Amendment No. 1 to lease with Driscoll, Inc. at 2702 Shelter Island Drive to extend the construction completion deadline of the lease to January 1, 2019.
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FISCAL IMPACT:[h1]
This Board action will not result in any fiscal impact. Driscoll pays a flat rent in the amount of $12,102.30 per month.
This agenda item is subject to Board of Port Commissioners Policy 106-Cost Recovery User Fee Policy.
COMPASS STRATEGIC GOALS:[h2]
This agenda item supports the following Strategic Goal(s).
* A Port with a comprehensive vision for Port land and water uses integrated to regional plans.
DISCUSSION:
In September 2016, the District executed a twenty-year lease plus one ten-year option with Driscoll, Inc. located ...
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