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Home My WebLink About2023-034January 25, 2023 Brooke Mosier Director — Colliers 561-512-3488 Brooke.Mosier!i-)Col liers.com RE: Five Guys LOl — Sebastian Corners 1919 US Hwy 1, Sebastian, FL 32958 Dear Brooke: We are pleased to submit the following proposal outlining some of the basic business terms and conditions under which Flowsmart Sebastian LLC d/b/a Five Guys ("Tenant") is willing to negotiate a lease for the premises identified below: Landlord: Indian River County, Florida, Board of County Commissioners Tenant: Flowsmart Sebastian LLC, a Florida limited liability company Premises: Approximately 3,200 sf on northern end cap. (the "Premises"), located at 1919 US Hwy I, Sebastian, FL 32958 as further shown on Exhibit A attached hereto ("Site Plan"). Lease: Five Guys Standard Lease Lease Term/Options: Ten (10) year term with two (2) consecutive five (5) year options Annual Rental: Years Rent/SF Annual Rent 1 - 5 $15.00 $48,000.00+sales tax 6-10 $16.50 $52,800.00+ sales tax 11 — 15 15 Option) $18.15 $58,080.00+ sales tax 16 — 20 2"d Option) $19.96 $63,888.00 + sales tax Additional Charges: Tenant's Pro -Rata share of CAM, taxes and insurance, and any merchant's association fees will not exceed $4.03 per square foot for the first full lease year, with Tenant's Pro -Rata Share being equal to the square footage of the Premises divided by the total square feet in the building/shopping center. Tenant's Pro -Rata Share is estimated to be 117.77%1. The break down for these charges is as follows: Rev. 3.30.17 SN CAM $ 2.89 - /SF Taxes $ 0.37 - /SF Rev. 3.30.17 SN Insurance $ 0.77/SF Outdoor Patio: If approved by City of Sebastian, Florida, which Tenant shall be responsible for obtaining approval, Tenant shall have the right to serve and seat its customers in the outdoor seating area depicted on the Exhibit A (the "Outdoor Seating Area"), which shall be reserved exclusively for Tenant, having space for the maximum number of customers allowable by local laws, municipal codes or ordinances. Tenant shall not be charged for the use of the Outdoor Seating Area nor shall the Outdoor Seating Area be included in the square footage measurement of the Premises. Use of Premises: Operation of Five Guys -k', a fast casual restaurant, with primary sale of hamburgers, hot dogs, and other menu items typical to a Five Guys restaurant, which cooks food for on- and off -premises consumption. Exclusive Use: Tenant shall have the exclusive right to sell hamburgers, cheeseburgers, french fries and other complimentary items, for on- and off -premises consumption at the Shopping Center. Tenant's exclusive shall not pertain to tenants whose sale of such items constitutes ten percent (10%) or less of their gross revenue. Full-service restaurants that take customers' orders at their table and delivers food to their table are also exempt from Tenant's exclusive. Building Plans: Landlord shall provide building plans they have, if any, (including but not limited to structural, mechanical, engineering and plumbing, landscape, and elevation plans) to Tenant within thirty (30) days after execution of this Letter of Intent. Delivery Date: Landlord shall give thirty (30) days prior written notice of Landlord's delivery of the Premises to Tenant. The Delivery Date is estimated to be Q1 2023 (to be further defined).. If the Delivery Date is overdue by seven (7) days, Landlord will credit Tenant one (1) day's rent for each day after the Delivery Date until such time as the Premises are delivered to Tenant. Tenant will have the right to terminate the Lease if Landlord fails to deliver the Premises within one hundred twenty (120) days after the estimated delivery date. If delivery of the premises occurs between October 1, 2023 and December 31, 2023, Tenant will have the option to delay acceptance of the premises until January 1, 2024. Lease Commencement Upon unconditional approval and mutual execution of lease document (Board of County Commission approval) and delivery of space by Landlord to Tenant. Rent Commencement Date: Base Rent shall commence on the date which is one hundred fifty (150) days the date that Tenant receives all permits, variances and governmental approvals necessary to construct Tenant's store pursuant to Five Guys specifications and operate Tenant's store in the Premises. Notwithstanding the foregoing, rent and all additional charges shall commence not later than the date on which Tenant opens Rev. 3.30.17 SN for business to the public. Tenant shall be responsible for all utilities at Lease Commencement and utilities and CAM starting at Rent Commencement. Permit Contingency: Tenant will have the right to terminate the Lease if it is unable to obtain all permits, variances and governmental approvals ("Permits") needed for the lawful construction of its store built pursuant to Five Guys specifications and operation of its store within one hundred twenty (120) days after the date Tenant's plans have been approved by Landlord. So long as Tenant is diligently endeavoring to obtain all Permits, Tenant shall not be required to exercise its termination right until the applicable authority has made a final decision and all appeals of the decision have been exhausted. Landlord will cooperate with Tenant and will execute any necessary applications for such Permits. Tenant shall be required to submit plans for Landlord approval within 30 days from Lease Commencement. Tenant shall apply for permits within 30 days following Landlord's approval of Tenants plans. Rent Abatement: Tenant's Base Rent shall abate for One -Hundred and Eighty (180) days following the Rent Commencement Date. Landlord will deliver Premises in As -is condition however, Landlord to ensure all Delivery Condition: utilities and HVAC are in good working order at lease execution. Tenant shall be responsible for utilities and HVAC throughout the duration of the lease (from lease commencement). Landlord shall, to the maximum extent trim the trees in front of Tenant's proposed Tree Coverage: positioning prior to Tenant's possession of the premises. To be further discussed. Co -Tenancy: None Signage: Landlord consents to Tenant's standard signage package attached hereto as Exhibit C. Tenant shall have the right to the top panel on the monument sign along US Hwy 1. Tenant shall be allowed to install maximum signage on the premises, as allowed by local municipality. If permitted, Tenant shall be permitted to establish signage on all sides of the building. Landlord will provide all necessary parking for Tenant's employees and customers Parking: at no additional cost to Tenant. Tenant shall have the right to reserve up to two dedicated parking stalls near the front of the store entrance for Tenant's carryout and third party delivery. Tenant shall have the right to use the rear portion of the parking lot for additional delivery service pick up. Pending confirmation from City of Sebastian. Permitted Transfers: Assignment and subletting to another entity will be subject to the exclusive use clauses in place at that time. Tenant shall not transfer the Premises in whole or in part, or permit occupancy of all or any part of the Premises by anyone other than Rev. 3.30.17 SN Tenant (the foregoing are referred to as "Transfer" or "Transfers") without first procuring the consent of the Landlord, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Tenant shall not be required to obtain Landlord's consent to assign this Lease to: (a) the parent of majority-owned subsidiary or affiliate of Tenant; (b) a person or entity acquiring the assets of at least twenty-five (25) stores of Tenant in a single transaction or (c) any entity resulting from a (i) merger (ii) consolidation, (iii) initial public offering, or (iv) sale of substantially all of Tenant's assets, or (d) a franchisee of Tenant or a franchisee of an affiliate of Tenant ("Franchisee") (each of the foregoing, a "Permitted Assignment"). In the event of Permitted Assignment, Tenant shall be released from obligations throughout the Term of the Lease, and any renewal thereof. Any attempt to Transfer, without the Landlord's consent in such Transfer where such consent is required, shall be void and confer no rights upon any third person. All further language pertaining to this issue shall be discussed within the formal lease negotiations. Agency: Landlord acknowledges that Kyle Mahoney & Tyler Peterson, Colliers International Florida LLC is acting as Tenant's broker. Landlord shall be responsible for payment of the commission due to Tenant's broker in accordance with a separate commission agreement. This letter of intent is merely an expression of interest and shall be non-binding upon the parties hereto. Each party shall have the unilateral right to terminate negotiations at any time, for any reason or for no reason, without liability to the other party. If and when a lease has been negotiated and executed, the terms thereof shall supersede the terms of this letter of intent. This proposal shall expire on February 15, 2023. Sincerely, Tenant: Five On behil(of Flowsmart Sebastian LLC DATE: % C;- TITLE: Chairman DATE: February 7, 2023 cc: Jeff Rubino — Vice President Real Estate- North America Attest: Jeffrey R. Smith, Clerk of Circuit Court and Comptroller Rev. 3.30.17 SN BY Deputy Clerk pP, ROVE1) AS T ,_) fCIL r ,', PUTY FIVE GUYS BURGERS and FRIES Exhibit A: The Premises U.S. �! woy Nat Selimwlon Corrws Retd Center, LIC I Vacant (Former Las Palmas) 3,200 SF Available aa„ !:t Zn 1-7 chi 4,alum Ripe► Comfy o+r M 1lOMM firm �� asse se r, t S sa $'%1 a North County Administrative Offices include: �—� Tax Collector Cleric of Court • Veteran Services Property Appraiser lltilitSes Vacant (Former Las Palmas) 3,200 SF Available aa„ !:t Zn 1-7 chi FIVE GUYS 13URGER5 and FRIE5 Exhibit B — Landlord's Work Grey Box Landlord Work Exhibit The construction work stated within this Exhibit is an enumeration of the work to be performed by both the Tenant and the Landlord. The work required to be performed by the Landlord shall be at no cost to the Tenant and it shall be per Tenants' specifications and all applicable code requirements (collectively "Landlords' Work"). Tenant shall be responsible for any additional work required to construct and operated a Five Guys Burgers and Fries restaurant with the Premises (collectively "Tenants' Work"). All Landlords' Work shall be complete prior to the space being turned -over to the Tenant. NVAG L -a GF 1 561pply and Fetum wate0a r, t. a point indiGated by Tenant w thin the premiG t. Water and; of air wlii t-amet}+far$d-at- a peraturc� adequate tO sea�ties� a to Tenants' design ir8t�e feger�t&: 3. SUPPly th8 aSSOGiated wateir and� 9F aiF 24 hours -per day, 7 days a week, year FOURd 41 Provide aGG966 tO GOde Fequired ftesh aiF and exhaust to the Tenant prernise per TeRaRt6, design req Uif8f}i8Rt6. ROOF PEh1TrmTRATlQ43_-. Tenant will be respORGib'9 foF any and all Foof peRetratioRs to Premises, TBRaRt agrees to use 1-a.4ords" roAf L PLUM'aG-' Rov '� 10 17 CN DEMGL4T;1A all demolish and remove all interior wa44 . P+{aing, duGtwgFk, nd all other item6 not salvaged in aGrGoFdapGe WithLandlord agrees to negotiate a FOasgAable rest for 440ab4Ye items DUMPSTE-R PAD: y-aA"II costs incurred with the- ins tallatin- A n- fan Gary: The location 6ha4I be determ4�e4by the Landlord appFGval by the City of Mian 2 —Landlords#3it PFOvide a hq&a bib at ths dumpMer enclosure If required by muRisipal sede- The Tenants des+g ver+iy-axi6king ppod any equipment necessary for the Tenants busFnes6. Rev. 3.30.17 SN Exhibit C: Exterior Sign Hotsheet Exterior Sign Layout The illustrations below show the aspect ratio for use in exterior sign applications. Alternative Stacked Layout 1 225 1 4.63 1.33 8,59 Print/Paint Calors Red: Bengal Red (MP 95959) White Face Colors Acrylic Red Translucent 2793 Vinyl 3M Gerber Dark Red Translucent 230-73 Vinyl 3M Gerber Cardinal Red Opaque 220-53 White Rev. 3.30.17 SN 2.58 Typical Sign Dimensions za L Rev. 3.30.17 SN Typical Sign/Awning Specs Hotsheet Preferred Awning Design The illustrations below show the preferred awning proportions. a.. so � I � Color Red: Sunbrella Logo Red Fabric Frame 1" Square aluminum tube frame, welded construction, mill finish, closed sides, open bottom. 24 L Rev. 3.30.17 SN Typical Sign Specs Hotsheet 199 1/4" Letters f ` 32 207 Scope of Work : Manufacture and install (1) new set of flush mounted channel letters as shown. Letters : Routed .040" aluminum backs, .040" x 5" tall returns, "Flanged & Crimped" construction, seams sealed, drain holes. Letter Finish : Letter interiors prefinished "White" enamel, exteriors prefinished Wrisco "White". Letter Faces : Routed 3/16" translucent 'White" (#7328) acrylic, finished with 1" White Jewelite trimcap. Backer Panel : Fabricated 1" sq aluminum tube frame, vertical stringers for strength, .090" aluminum face bonded to face of tubing, panel exterior primed & painted'Bengal Red" (MP 95959). Lighting : Letters lit internally using Hanley PF3120 "White' LED light modules. Electrical : 120 volt, UL listed & labeled, Hanley 12v LED power supplies remotely mounted inside building. Location : Sign centered left to right on wall, up and down at same elevation as side elevation sign. Channel Letter & Wall Cross Section FA, G* AIa.•nlb. 9.r.Ar. Inl.rror Eovvr 9"{rplu• Pn"rGry ENU"cN ' Frmc�p S wfM t"N EMccree � tE0• Re. P.— U"p ,' me"n1.d 10 _ Oto wNN _ F.c. MowM1np WN I \R.rurn Channel Letter & Wall Cross Section Gr,,.w Mant.e, 0.e".r, E.l.•we Pn.n•9"pW.. Pnm.ry EHelrK.l 'I�•- lFD• — i K4�MF•R4.fanduy f.cr ➢...• wpNf�ncw Alo"nrnp .ipop yp for rN tF➢1 \RNwn `�- H.Mo ➢.ner Typical Tenant Panel/Pole Sign Specs Hotsheet Preferred Layout Typical back -lit sign has Gerber Red 230-73 vinyl weeded to white. Signage Colors Translucent "White" (#7328) acrylic panel Vinyl 3M Gerber Dark Red Translucent 230-73 Pole Signs Preferred Layout Typical back -lit sign has Gerber Red 230-73 vinyl weeded to white. Signage Colors Translucent "White" (#7328) acrylic panel Vinyl 3M Gerber Dark Red Translucent 230-73 Rev. 3.30.17 SN Five Guys Tenant Panel Hotsheet Updated April 2019 pg 4 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first set forth above. . S./o �F9 INDIAN RIVER COUNTY, FLORIDA o`' * rD11F COUNTY COMMISSIONER$; Joe rman, Chairman .��2oiq/ ;t .'S'`� ' •.vR/V coy Approved by BCC February 7, 2023 ATTEST: Jeffrey R. Smith, Clerk of Court and Comptroller By: ale DepdWy Clerk Approved:of Michaei o, Interim County Administrator Approved as to For n Le Sufficiency: William K. eBraal, Deputy County Attorney