Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Contracts Leases topic
No spam. Unsubscribe anytime.
Commission OKs amended lease for Pier restaurant after eviction dispute; tenant granted later possession date
Summary
After extended negotiations following a holdover tenant eviction, the commission approved an amendment to the Pier restaurant lease that shifts possession/commencement dates, secures a tenant release and creates a split-recovery structure for any damages recovered from the prior tenant.
The Deerfield Beach City Commission on Tuesday approved amendments to the long-term lease for the city’s Pier restaurant space, resolving months of litigation and negotiation that followed a holdover tenant eviction.
Under the amendment approved by the commission on first reading, the new tenant (originally Deerfield Beach Cafe LLC, now registered as 202 DFB LLC) receives a revised possession date of June 1, 2025, and additional time before rent commencement. The lease’s first-year base rent amount listed in the original agreement remains unchanged; the amendment provides for a delay in rent payments equivalent to up to nine months of initial possession before rent begins, and staff calculated that the rent-delay value approximates $157,500 in first-year base rent equivalency.
City Attorney Anthony Siroca outlined several substantive changes in the amendment: updated possession and lease-commencement dates; an updated security requirement (letter of credit) to be in place at least 30 business days before the lease commencement date; clarified temporary parking alternatives if designated spaces are unavailable; a process for requesting and approving outdoor seating along the sidewalk; a release by the tenant of claims against the city arising from the city’s failure to deliver earlier possession; and an assignment provision to transfer any claims the tenant may have against the prior holdover tenant to the city.
The assignment provision gives the city a portion of recovered damages: the amendment provides a 50% split of up to the first $600,000 of any damages the city recovers from the prior tenant (after deducting the city’s attorney fees and costs), with the city entitled to 100% of recoveries above that amount. The amendment also contains a provision for prorated rent reduction if the pier is “fully or substantially closed” to the public for more than 30 consecutive days for reasons other than force majeure.
Tenant representative David Coles told the commission his client had incurred increased construction bids, lost income and other out-of-pocket costs after the tenant expected to take possession in late 2023; the tenant sought compensation and relief in litigation but participated in negotiated settlement terms embodied in the lease amendment. Public commenter Dan Hurst criticized the city’s negotiating position and asked why the city would accept the tenant’s claimed damages; the city attorney said his office was prepared to defend the city if the amendment were denied and litigation continued.
Commissioners noted trade-offs: the amendment preserves the city’s 20-year lease term and base-rent schedule while providing the tenant some relief for the unexpected possession delay. Commissioner Hudak, whose district includes the pier, said he supported the negotiated resolution. The motion to approve the amendment passed on roll call with all commissioners voting yes.
Staff said the modification is subject to final ordinance adoption (second reading) and that the city will continue to pursue claims against the prior holdover tenant as provided in the amendment’s assignment and recovery provisions.
