Council allows early lease termination for two downtown tenants, keeps security deposits

Council voted to allow Punta Gorda Coffee & Tea and Punta Gorda Chocolate & Wine to terminate their downtown leases early, subject to conditions including retaining security deposits and collecting small ad valorem tax true‑ups.

Tenants described repeated flooding at the downtown Harrell Court locations and said the businesses could not survive another event; they asked to be released without further financial obligation. The city attorney advised that the leases, as written, could leave tenants legally liable through their contract end dates unless council chooses otherwise. Several councilmembers cited precedent (previous lease releases for other downtown tenants), the city’s expense in repairs and Tiger Dam installations, and the broader interest in supporting local businesses.

After extended discussion about fairness to taxpayers, whether the city should market the units, and whether tenants had given adequate notice, council voted on a motion to release the tenants from the lease and to retain their security deposits (approximately one month’s rent between the two units) while requiring payment of the ad valorem tax adjustments (recorded in the ledger as $352 and $503 for the two units). The tenants indicated intent to vacate by Nov. 30 and to reopen at a higher, more elevated location elsewhere in the city.

The motion included inspection of units before deposit disposition and language to make the units available for showing to prospective replacement tenants. Council directed staff to post availability and to pursue replacement tenants; legal counsel noted that letting tenants out of a lease is discretionary and precedent is not binding.