Subject:
Title
Consent to Assignment and Assumption of Ground Sublease between RCDRSAIR, LLC and Seven Hills Clearwater, LLC, a Florida limited liability company, at St. Pete-Clearwater International Airport.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Lessor Consent to Assignment and Assumption of Ground Sublease (Assignment) between RCDRSAIR, LLC and Seven Hills Clearwater, LLC (Seven Hills) at St. Pete-Clearwater International Airport.
• The Lessor Consent to the Assignment is necessary to accommodate Seven Hills’ assumption of the Ground Sublease from RCDRSAIR, LLC.
• The Lease Agreement With Renewal Options dated April 18, 1995 between Pinellas County and E & G Properties, Ltd. (Ground Lease) allows for assignments and subleases with County approval.
• The annual ground lease payment under the Ground Lease is $74,569.00.
• The Ground Lease is in place until April 18, 2055.
• This revenue is included in the Fiscal Year (FY) 26 Adopted Budget for PIE in the Airport Revenue and Operating Fund. Future revenue and adjustments will be included in future budget developments and subject to annual budget adoption.
Body
Strategic Priorities:
Prosperity and Opportunity
3.3 Increase workforce opportunities
3.5 Foster business growth
Summary:
The approval of the Assignment will enable Seven Hills to assume the lease rights from RCDRSAIR, LLC under the Ground Sublease.
Background/Explanation:
On April 18, 1995, E & G Properties, Ltd. signed a Ground Lease with the County, which was recorded at Official Records Book 9052, Page 866, Public Records of Pinellas County, pertaining to Lot C, Airport Industrial Park, Unit II, at the Airport.
On October 10, 2012, E & G Properties, Ltd. sublet a portion of Lot C to USAmeriBank pursuant to a Ground Sublease, which is attached as Exhibit D to a Lessor’s Agreement dated October 1, 2012, and recorded at Official Records Book 17748, Page 1475, Public Records of Pinellas County.
On January 22, 2024, a Corrective Assignment and Assumption of Ground Leases was recorded at Official Records Book 22686, Page 1619, reflecting the assignment of the Ground Sublease by Valley National Bank (successor by merger to USAmeriBank) to RCDRSAIR, LLC.
RCDRSAIR, LLC now seeks to assign its interests under the Ground Sublease to Seven Hills.
The Assignee (new subtenant) under the Ground Sublease, Seven Hills, is an LLC owned by a group of local investors who are investing in Pinellas County office and industrial properties. The investment group oversees many of the Fresenius and DaVita dialysis clinics in the greater Tampa Bay area.
Fiscal Impact:
No fiscal impact associated with the County’s execution of the Lessor Consent to Assignment of the Ground Sublease. The annual ground lease payment by E & G Properties, Ltd. to the County under the Ground Lease is $74,569.00.
Delegated Authority:
Authority for the County Administrator to sign this Lessor Consent to the Assignment is granted under Code Section 2-62 (a)(6).
Staff Member Responsible:
Mark E. Sprague, C.M., Interim Director, St. Pete-Clearwater International Airport
Partners:
N/A
Attachments:
Assignment and Assumption of Ground Sublease