Pensacola mayor works out payment plan with Port tenant

Next week, Mayor Ashton Hayward will ask the Pensacola City Council to approve a new financial agreement with Offshore Inland Marine & Oilfield Services, a lessee at the financially troubled Port of Pensacola.

Mayor Hayward wants to terminate the company’s lease for Port Warehouse # 9 and also amend the Lease Agreement for Port Warehouse #1.

The amended lease agreement sets up a payment plan for Offshore Inland to pay off $269,247 in outstanding debt by Sept. 30:

“Lessee shall pay Ten Thousand Dollars ($10,000.00) per month toward the outstanding past-due balance, with a final balloon payment for the entire outstanding amount including interest at twelve percent (12%) per annum as further described and calculated in the Port Tariff, by no later than September 30, 2017.”

Offshore Inland will also be given credit of the work the company did under a state grant (for which the state hasn’t reimbursed the city) to pay off another $363,000 in outstanding receivables. The City will give a $10,000 credit every month to apply towards the $363K:

…the payment of Ten Thousand Dollars ($10,000.00) per month toward the outstanding past-due balance discussed in Section 5(a) above, upon determination by the Port Director with the prior consent of the City Chief Financial Officer, Lessee shall remit to Lessor any unabated balance remaining from the Three Hundred Sixty Three Thousand Dollars ($363,000.00) in outstanding receivables owed by Lessee to Lessor but which are held in abeyance. Upon determination of the Port Director with the prior consent of the City Chief Financial Officer that any or all of the entire outstanding balance in this Section 5(b) is not covered by the Grant, then, in the sole discretion of the Port Director and with the prior consent of the City Chief Financial Officer, any, if any, reduction, credit or offset of the entire outstanding balances shall be determined by the Port Director with the prior consent of the City Chief Financial Officer.”

For use of Warehouse #1, Offshore Inland will pay to City “rent in the amount of One Hundred Four Thousand Four Hundred Dollars ($104,400.00) per year payable in twelve (12) equal monthly payments of Eight Thousand Seven Hundred Dollars ($8,700.00) per month, plus sales tax, due and payable in advance on the first (1st) day of each month.”

Read Amendment to Warehouse 1 Lease Agreement and Termination Agreement for Warehouse 9.

Previous posts on Port of Pensacola