Commission approves FEC lease amendment after debate over higher rates and added parcels

Summary

The commission approved Resolution 90‑2025 to amend the city’s lease with Florida East Coast Railway (FEC), adding parcels and reflecting a multi‑year catch‑up that staff said equates to a large percentage increase; commissioners discussed the annual 5% escalator and implications for downtown parking and crossings.

The City of Stuart approved a first amendment to its real‑estate lease with Florida East Coast Railway (FEC) that adds an additional parcel and updates rates the railway says are long overdue.

City staff explained FEC audited outstanding leases and determined that the city had been using extra space not covered by earlier leases and that lease rates had not been adjusted in about 20 years. The amendment adds one parcel along the rail (near Dixie) and — according to staff figures cited in the meeting — could bring the city’s annual liability for parking and related rail costs toward an annual bill in the mid‑hundreds of thousands of dollars (staff cited a recent five‑year payment of roughly $597,000 for signal and crossing maintenance).

Commissioners expressed frustration about the size of the increase and the lack of negotiation leverage (staff noted FEC controls crossings and the city’s access). Vice Mayor Reid called the change “amazing” given historical rates; other commissioners said the city had little practical alternative if it wished to preserve downtown parking and crossings. The resolution passed on a roll call vote.