Benny's on the Beach Leases at the Lake Worth beach

NEW BUSINESS A

SECOND AMENDMENT TO LEASE
1.  Impact of Covid-19
Starting on June 1, if there are still Covid restrictions in place on their indoor occupancy, what's proposed is a 50% abatement and a 50% deferral. The base rent of half the rent of $20,000 a month, will continue to be deferred if restrictions are still in place until November 1 or when restrictions are lifted, whichever comes first. Benny's will have one year to pay back the deferred rent.

2.  Infectious diseases as they may occur in the future
As of November 1, if there are govt restrictions on infectious disease that restricts the tenants use of its occupancy the city will go into a deferral situation. This will last until restrictions are lifted or one year.

3.  Benny's waived the abatement on the pier closure.

The vote was 4/1 with commissioner Robinson dissenting. Robinson wanted the City to be fair to all of our tenants at the beach, not just one with favorable status with the city. He emphasized that there should be a policy for all our tenants and be fair to all. The city attorney said that the leases are all different and the others have no abatement provision.

NEW BUSINESS B

4.  Benny's on the Beach will assume the Mulligan lease and turn it into a Mexican restaurant. They will get three months of free rent to do the renovations.  $15,910.11 a month base rent. 3.5% increase each year for full term of this lease. The lease term will be extended to a 10 year initial term commencing October 1or rent commencement date with 2, five year options for renewal. Security deposit will be two months of base rent. Covid deferral and abatement would start on October 1 or when they're ready to open and run through December 31. Beginning January 1 2021 additional deferrals and abatement would apply if needed.

The vote was 5/0.