HomeMy WebLinkAboutR-02-1214J-02-938
11/07/02 c�
RESOLUTION NO. ,Gr
A RESOLUTION OF THE MIAMI CITY COMMISSION
AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AMENDMENT TO THE LEASE AGREEMENT DATED
JANUARY 5, 1998, AS AMENDED ("AGREEMENT"), IN
SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE
CITY OF MIAMI ("LESSEE") AND GOLDEN SANDS
ALLAPATTAH CORPORATION ("LESSOR"), FOR OFFICE
SPACE AT 1313 NORTHWEST 36TH STREET, MIAMI,
FLORIDA, TO EXERCISE THE CITY'S OPTION TO
RENEW THE AGREEMENT FOR FIVE YEARS COMMENCING
JANUARY 1, 2003, AT AN INITIAL GROSS RENTAL
RATE OF $14 PER SQUARE FOOT OR $13,550.50 PER
MONTH FOR THE FIRST YEAR; PROVIDING FOR
ANNUAL RENTAL INCREASES TO BE DETERMINED BY
THE CONSUMER PRICE INDEX AT TIME OF
CALCULATION FOR SUBSEQUENT YEARS, AT AN
AMOUNT NOT TO EXCEED A MAXIMUM ANNUAL
INCREASE OF THREE PERCENT, WITH ALL OTHER
TERMS AND CONDITIONS SET FORTH IN THE LEASE
AGREEMENT REMAINING IN EFFECT.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The City Manager is authorized" to execute
an amendment to the Lease Agreement, dated January 5, 1998, as
amended ("Agreement"), in substantially the attached form,
1� The herein authorization is further subject to compliance with
all requirements that may be imposed by the City Attorney,
including but not limited to those prescribed by applicable City
Charter and Code provisions.
CITY C.0MUSSION
N.EETLIG OF
2002
ltasolution No.
02-1214
between the City of Miami ("Lessee") and Golden Sands Allapattah
Corporation ("Lessor"), for office space at 1313 Northwest 36th
Street, Miami, Florida, to exercise the City's option to renew
the Agreement for five years commencing January 1, 2003, at an
initial gross rental rate of $14 per square foot or $13,550.50
per month for the first year, and providing for annual rental
increases to be determined by the Consumer Price Index at time of
calculation for subsequent years, at an amount not to exceed a
maximum annual increase of three percent, with all other terms
and conditions of the Lease Agreement remaining in effect.
Section 2. This Resolution shall become effective
immediately upon its adoption and signature of the Mayoral
zi If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by
the City Commission.
Page 2 of 3 02._12,1
PASSED AND ADOPTED this 19th day of
ATTEST:
PRISCILLA A. THOMPSON
CITY CLERK
S TO FORM AND
N
CITE ATTORNEY
W6676:tr:AS:BSS
TNESS ej
Page 3 of 3
November , 2002.
EL A. DIAZ, MAYOR
02-1214
CITY OF MIAMI, FLORIDA =14
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members DATE: FILE:
of the City Commission NOV - 4 2;02
SUBJECT: Resolution Authorizing
Amendment No. 5 to Lease
With Golden Sands
FROM: S A. G nez REFERENCESAllapattah Corp.
City Manager
ENCLOSURES:
RECOMMENDATION
The administration recommends that the Miami City Commission adopt the attached Resolution,
authorizing the City Manager to execute Amendment No. 5 (the "Amendment"), in substantially
the attached form, to the existing Lease Agreement dated January 5, 1998, as amended, between
the City of Miami ("Lessee") and Golden Sands Allapattah Corporation (the "Lessor") to
provide for City's exercise of its 1St Option for a period of 5 years with an initial gross rental rate
of $14.00 per square foot with further annual increases calculated based upon the CPI Index with
a 3% cap. The Amendment further provides for gross rent during the remaining two (2) five (5)
year option periods be negotiated at the time the option is exercised, which option may only be
exercised by the City Commission.
BACKGROUND
The City entered into a lease with Golden Sands Allapattah Corporation on January 5, 1998 for
use of office space at 1313 NW 36 Street by the Office of Workforce Development. The lease
provided for an initial term of 5 years, which term expires December 31, 2002, with the option to
renew for three additional 5 -year periods. The Office of Workforce Development continues to
require the use of 11,619 square feet of space; therefore, they would like to exercise the first
option period. The first option period will commence January 1St, 2003 and expire December 31,
2007.
The Lease Agreement provides for the gross rent during the option periods to be determined by
an appraisal, which appraisal cost would be shared equally by the parties. Due to recent
negotiations of rental space in this building for Internal Affairs, which rental rate was negotiated
at $14.50 SF, and a recent review of comparable rental rates in the area, the parties determined it
was reasonable to negotiate the rental rate for the first option period in lieu of obtaining an
appraisal. Rental rates in the area ranged from $13.00 SF (gross rent net of electric) to $22.10
SF (gross rent for full service).
The Honorable Mayor and Members
Of the City Commission
This Amendment will provide for the City's exercise of its 1st option at a negotiated gross rental
rate $14.00 SF with further annual increases calculated based upon the CPI Index with a 3% cap.
The Amendment further provides for gross rent during the remaining two (2) five (5) year option
periods to be negotiated at the time the option is exercised based upon prevailing market rents
that would be received by landlords renting space of similar quality, size and location. The
option may only be exercised by the City Commission.
FINANCIAL IMPACT
THE IMPACT TO THE CITY IS AN EXPENDITURE OF MONTHLY RENT IN THE
AMOOUNTtiOiF $13,555.50.
CAG:
I3BPK:pgf Cover Memo for RESO_Option Period
02-121.4