Placement: First Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 26-93, Public Hearing, Authorizing the Second Amendment to a Lease Agreement between the City of Port St. Lucie and PIII Investments, LLC, for a Portion of Real Property Located at 2454 SE Westmoreland Boulevard (The Port District Riverfront Park) for a Riverfront Restaurant.
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Submitted By: Jennifer Davis, Director of Community and Economic Development
Strategic Plan Link: The City's Goal to enjoy culture, nature and fun activities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Jennifer Davis, Director of Community and Economic Development, and Margaret Carland, Senior Deputy City Attorney
2. Parties: City of Port St. Lucie and PIII Investments, LLC
3. Purpose: To execute the Second Amendment to the Port District Riverfront Restaurant Lease Agreement (“Second Amendment”) in accordance with the negotiated revised terms and conditions contained therein between the City of Port St. Lucie and PIII Investments, LLC, for the development, construction and operation of a riverfront food garden in The Port District’s riverfront park site.
4. New/Renewal/Modified: Modified
5. Duration: Initial term of thirty (30) years, with four 5-year renewal options. (no change)
6. Benefits to Port St. Lucie: The creation of a destination along the North Fork of the St. Lucie River has long been a strategic priority of the City of Port St. Lucie. Through the development of a riverfront park and related park elements, the public will have a unique opportunity to connect with the river. The addition of a riverfront restaurant to the park site will enhance the draw to the site and surrounding amenities including the City’s Botanical Gardens, newly developed Historic Village, Pioneer Park Playground, and extensive interconnected trail network.
7. Cost to Port St. Lucie (Annual and Potential): There are no annual cost associated with the Second Amendment. A synopsis of the anticipated annual revenue is outlined below.
Presentation Information: A brief presentation will be provided by staff, if requested.
Staff Recommendation: Move that the Council approve the Ordinance authorizing the execution of the Second Amendment to the Port District Riverfront Restaurant Lease Agreement between the City of Port St. Lucie and PIII Investments, LLC.
Alternate Recommendations:
1. Move that the Council not approve the Second Amendment to the Riverfront Restaurant Lease Agreement between the City of Port St. Lucie and PIII Investments, LLC, and provide staff with additional direction.
Background:
In late 2020, the City of Port St. Lucie sought a developer to build and operate a riverfront restaurant site in The Port District. The City entered into the Port District Riverfront Restaurant Lease Agreement (“Lease Agreement”) with PIII Investments, LLC, in January 2023 (Ordinance 23-02; Legistar ID 2023-017). The City subsequently delivered a pad-ready site to the developer in June 2024 when the surrounding park elements were complete. Since that time, the developer diligently worked on construction drawings and permitting efforts.
The following provides a synopsis of the major lease terms for the project, all of which remain unchanged with any amendments:
• Lease Term: Initial 30-year term, with four 5-year renewal options
• Base Rent: $40,000 annually, paid monthly; 3% escalation annually
• Percentage Rent: 4% of gross sales over $2,500,000
• Property Taxes and Assessments: Lessee will be responsible for paying property taxes and assessments associated with the leased parcel and the improvements thereon.
The First Amendment to the Lease Agreement was approved by City Council on April 27, 2026 (Ordinance 26-32; Legistar ID 2026-304). The First Amendment to the Lease Agreement amended, added or replaced certain definitions and sections within the Lease Agreement.
The Second Amendment to the Lease Agreement for current consideration provides for Sections 14.1, 18.2 and 18.3 to be amended to clarify the order in which proceeds would get disbursed in the event of condemnation or casualty occurrences.
In August 2026, the developer closed on their construction financing loan and issued a Notice to Proceed to the construction contractor and sitework began the week of September 7th.
Issues/Analysis: N/A
Financial Information: N/A
Location of Project: The restaurant site is located along the east shoreline of the North Fork of the St. Lucie River, generally at the western edge of the Westmoreland Middle Tract site, south of Port St. Lucie Boulevard, in The Port District.
Attachments:
1. Ordinance
2. Exhibit A to Ordinance - Second Amendment to Lease Agreement
3. First Amendment to Lease Agreement - fully executed
3. Ordinance and Riverfront Restaurant Lease Agreement
4. Location Map
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26244-04
Legal Sufficiency Review: Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney