TO: Indian River County Board of County Commissioners
THROUGH: John A. Titkanich, Jr., County Administrator
THROUGH: Jennifer W. Shuler, County Attorney
FROM: Susan J. Prado, Deputy County Attorney
DATE: September 5, 2025
SUBJECT: Lease Termination for 8865 91st Avenue, Vero Beach, FL
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BACKGROUND
In October 2006 the property located at 8865 91st Avenue, Vero Beach, FL (hereinafter “Subject Property”) was purchased at full market value ($204,000) for a right-of-way road widening project of 89th Street off CR 510. As part of the purchase and sale agreement the Subject Property was then leased back at no charge for a term of two (2) years or until the CR 510 road-widening construction starts, whichever comes sooner to the prior owner (hereinafter “Tenant”) from whom the Subject Property was purchased. On June 6, 2009, an agreement for a lease extension was entered into for the Subject Property and the lease was extended at no charge to an uncertain date, 12 months prior to commencement of any phase of construction 89th Street and CR510. The lease agreement also provided for termination of the lease agreement should the tenant breach the lease which included code/ordinance violations.
On January 14, 2025, a code violation was issued to the Subject Property for boat/trailer storage violation and junk, trash, and debris violation. The Tenant was notified of the code violation, and a notice of Breach of Lease and termination of Lease Agreement was sent to the Tenant. The notice gave the time by which the tenant needed to vacate the premises. Tenant subsequently obtained counsel and, in an effort to settle this matter without expending county funds on court costs and fees, the County granted Tenant a brief extension to vacate the premises that allowed the tenant time to locate a new location to move to. The Tenant's Counsel requested an additional time and that proposed Agreement to Terminate Lease Agreement for the Subject Property is what is before the Board for consideration today.
ANALYSIS
The Tenant violated the lease agreement that was put in place in 2009. It is in the best interest in the County to terminate the lease agreement. Entering into the Agreement to Terminate the Lease Agreement would prevent the County from having to expend any more taxpayer funds on taking this item to litigation. Staff proposed a date of January 1, 2026 for the termination date and the tenant countered with June 1, 2026. The board should consider if they would like to counter the June 1, 2026 termination if it is not acceptable to the board.
PREVIOUS BOARD ACTIONS
Purchase of Property granting lease back at no cost to owner in 2006.
Extension of lease back in 2009.
POTENTIAL FUTURE BOARD ACTIONS
If the Board chooses not to move forward with the lease termination, the Board may order litigation to be started at a future date.
STAFF RECOMMENDATION
Recommended Action
Staff recommends the Board approve the Agreement to Terminate the Lease Agreement and authorize the Chairman to execute same.