Title: RE1 Conditional Acceptance and Assumption of Lease

Recommendation:
I recommend the School Board approve the Conditional Acceptance and Assumption of Lease with 1325 Gateway, L.L.C. for facility located at 1325 Gateway Boulevard, Boynton Beach, Florida; and authorize the Chairman and Superintendent to sign all necessary documents.

Description:

·        The leased facility at 1325 Gateway Boulevard is the location of the Survivors Charter School Boynton Campus.

·        1325 Gateway, L.L.C. (Lessor) and Survivors Charter School, Inc. (Lessee) entered into a Lease Agreement on January 31, 2003 for 33,500 sq. ft.

·        The initial terms of the Lease is for a seven (7) year period with a base annual rent of $460,625 ($13.75 per sq. ft. Triple Net) and an escalation clause of the greater of 4% or CPI yearly.

·        The Lessor requested assurance from the School Board to assume the Lease during the pendancy of the Appeal and, in the event the School Board prevails, for the remaining term of the Lease.

·        In the event Survivors Charter shall be reinstated as lessee under the Lease, the School Board shall have no further obligation or liability associated.

Financial Impact:
The Financial Impact for the remainder of Fiscal Year ‘06 is $190,000.  The Financial Impact for the remaining 4 years of the lease is estimated at $600,000 per year

For Additional Information, contact:
Joseph M. Moore (moorej@palmbeach.k12.fl.us)
Joseph M. Sanches

Attachments (list):
ASSIGNMENT AND ASSUMPTION of Lease - Survivors.pdf