The Utility Board on Jan. 17 authorized Keys Energy Services’ (KEYS) staff to finalize and approve a lease for the park-and-ride garage with the city of Key West.
KEYS owns a parcel of land on the 300 block of Grinnell Street that was leased to the city to construct the park-and-ride facility. The original 30-year lease expired on Dec. 31, 2023.
KEYS’ and city staff entered into negotiations to establish a new lease and tentatively agreed to terms that were approved by the Utility Board. The tentative agreement includes the following provisions:
- A 20-year lease starting on Jan. 1, 2024, and ending on Dec. 31, 2044, with a 10-year extension upon the written consent of both parties.
- The city will pay KEYS $10 for the period of Jan. 1, 2024, through Jan. 1, 2025. Beginning on Jan. 1, 2025, the City will make annual lease payments to KEYS of $225,000.
- Beginning on Jan. 1, 2026, and on each anniversary date thereafter, the annual lease will be increased by 2.5%.
- The city retains the right to re-open the lease payment terms of the contract in the event there is a declared state of emergency lasting more than 30 days that affects city revenue.
- The city remains responsible for all structure maintenance and insurance coverage.
- KEYS retains the right to use 64 spaces for employee parking, and access to 60 additional spaces upon the issuance of a tropical storm or hurricane watch.
The Key West City Commission is scheduled to vote on this lease on Feb. 8.
