Subject:
Title
Second Amendment to Lease and Concession Agreement with Showboat, LLC at St. Pete-Clearwater International Airport.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Second Amendment to Lease and Concession Agreement (Amendment) with Showboat, LLC (Showboat) at St. Pete-Clearwater International Airport (Airport).
• The Second Amendment extends the term of the Ground Lease with Showboat.
• The current agreement has 28 years remaining.
• The term of the Second Amendment is two (2) additional 10-year terms.
• Improvements will be made to the hotel property totaling $1.2M.
• Revenue for this agreement is included in the FY26 Adopted Budget for PIE in the Airport Revenue and Operating Fund. Current annual revenue is $156,280, however, will be subject to a CPI increase in FY27. The lease rent is adjusted every five years and will be reviewed again in FY27. The adjustment for FY27 and beyond is currently unknown but will be included in future budget developments and subject to annual budget adoption.
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Strategic Priorities:
Prosperity and Opportunity
3. Increase workforce opportunities
5. Foster business growth
Summary:
The approval of the Amendment will enable Showboat to continue to lease 3.644 acres MOL of land on Ulmerton Road in Clearwater.
Background/Explanation:
A Lease and Concession Agreement was entered into on November 5, 1996 between Pinellas County and FSU Trent, Ltd., a/k/a FSU Trent Inc. in order to utilize the leased premises, formerly known as the Showboat Dinner Theatre.
This Lease was subsequently assigned on November 16, 1999 to Crosslantic Partners, Inc.
A First Amendment to Lease and Concession Agreement was entered into on March 15, 2001 between Pinellas County and Crosslantic Partners, Inc., f/k/a FSU Trent, amending the Description of Premises.
This Lease, as amended, was assigned on May 28, 2004 to Malco Industries, Inc. and in 2007 to The Malamud Family Trusts, and finally in 2013 to Showboat, LLC.
The property currently includes a Chick-fil-A restaurant, a Springhill Suites by Marriott Hotel, and Bank United. The expiration of the Lease is November 3, 2053, leaving 28 years remaining. The hotel is required by Marriott to make improvements totaling $1.2M over the next two (2) years and to obtain third-party financing, the financial institution requires at least a 30-year ground lease term remaining. Therefore, Showboat has requested an extension of the Lease through this Second Amendment and agrees to make improvements to the property totaling $1.2M to be completed by October 31, 2028.
The 20-year extension enables the hotel to keep the Marriott flag and make the necessary improvements to the property.
Fiscal Impact:
Revenue for this agreement is included in the FY26 Adopted Budget for PIE in the Airport Revenue and Operating Fund.
Current annual revenue is $156,280, however, will be subject to a CPI increase in FY27. The lease rent is adjusted every five years and will be reviewed again in FY27. The adjustment for FY27 and beyond is currently unknown but will be included in future budget developments and subject to annual budget adoption.
Delegated Authority:
Authority for the County Administrator to sign this Amendment is granted under Code Section 2-62 (a)(9).
Staff Member Responsible:
Mark Sprague, Interim Director, St. Pete-Clearwater International Airport
Partners:
N/A
Attachments:
Lease and Concession Agreement
First Amendment to Standard Ground Lease Agreement
Second Amendment to Lease and Concession Agreement