HomeMy WebLinkAboutM-00-0026IN ; ER-OFriC'_= ;`, _EM 0RA N DUNI
The Honorable Mayor and Members
of the Ci ommission
o arshaw
City Manager
RECOMMENDATION:
20
N O V - 4 1999FILE:
Lease Agreement between the
City of Miami and the 8325 N.E.
2n1 Avenue, Corp.
City Commission Agenda
- November 16, 1999
The administration recommends that the City Commission approve the attached Resolution
authorizing the City Manager to execute a Lease Agreement ("Agreement"), in substantially the
attached form, with the 8325 N.E. 2nd Avenue, Corp., a Florida Corporation. This Agreement is
for the use of approximately 28,019 square feet of office, classroom, and workshop space for the
Office of Workforce Development. It will be located at 8325 N.E. 2nd Avenue, Miami, Florida.
The terms of the Agreement include a rental amount of thirteen dollars ($13.00) per square foot
which totals a monthly fee of thirty thousand three hundred fifty three and 91/100 dollars
($30,353.91), plus a contingency not to exceed fifteen thousand dollars ($15,000.00) per annum
for additional overtime usage of the HVAC system and other electrical services, a seven year
term with one five-year option, and terms and conditions as more particularly set forth in the
Agreement.
BACKGROUND:
The opening of the City of Miami Office of Workforce Development in the Little Haiti area from
which to provide expanded services is necessary to meet grant funding requirements. The City
of Miami advertised and mailed letters of solicitation for the use of office and classroom space
within this target area. The City received letters of interest from the following principals:
1) Leoni Real Estate Corporation - 8515 Biscayne Boulevard
2) Mr. Samuel S. Forman - 8340 N.E. 2nd Avenue
3) 8325 N.E. 2nd Avenue Corporation - 8325 N.E. 2nd Avenue
4) Terranova Corporation - 561 N.E. 791h Street
The administration visited each of the aforementioned locations and requested each principal to
submit a proposal, including a rental proposal, and a space layout plan for each location. Of the
four principals, only three submitted proposals for the City's consideration. One principal, Leoni
Real Estate Corporation, decided not to submit a proposal.
LC
IN ; ER-OFriC'_= ;`, _EM 0RA N DUNI
The Honorable Mayor and Members
of the Ci ommission
o arshaw
City Manager
RECOMMENDATION:
20
N O V - 4 1999FILE:
Lease Agreement between the
City of Miami and the 8325 N.E.
2n1 Avenue, Corp.
City Commission Agenda
- November 16, 1999
The administration recommends that the City Commission approve the attached Resolution
authorizing the City Manager to execute a Lease Agreement ("Agreement"), in substantially the
attached form, with the 8325 N.E. 2nd Avenue, Corp., a Florida Corporation. This Agreement is
for the use of approximately 28,019 square feet of office, classroom, and workshop space for the
Office of Workforce Development. It will be located at 8325 N.E. 2nd Avenue, Miami, Florida.
The terms of the Agreement include a rental amount of thirteen dollars ($13.00) per square foot
which totals a monthly fee of thirty thousand three hundred fifty three and 91/100 dollars
($30,353.91), plus a contingency not to exceed fifteen thousand dollars ($15,000.00) per annum
for additional overtime usage of the HVAC system and other electrical services, a seven year
term with one five-year option, and terms and conditions as more particularly set forth in the
Agreement.
BACKGROUND:
The opening of the City of Miami Office of Workforce Development in the Little Haiti area from
which to provide expanded services is necessary to meet grant funding requirements. The City
of Miami advertised and mailed letters of solicitation for the use of office and classroom space
within this target area. The City received letters of interest from the following principals:
1) Leoni Real Estate Corporation - 8515 Biscayne Boulevard
2) Mr. Samuel S. Forman - 8340 N.E. 2nd Avenue
3) 8325 N.E. 2nd Avenue Corporation - 8325 N.E. 2nd Avenue
4) Terranova Corporation - 561 N.E. 791h Street
The administration visited each of the aforementioned locations and requested each principal to
submit a proposal, including a rental proposal, and a space layout plan for each location. Of the
four principals, only three submitted proposals for the City's consideration. One principal, Leoni
Real Estate Corporation, decided not to submit a proposal.
Honorable Mayor.and Members
of the City, Commission
Page 2
The administration evaluated, each proposal and determined that of the three proposals, one
proposal,., Terranova Corporation, was not in the best interest of the City due to their
comparatively. higher rental price of $16.00 per square foot plus annual increases of four (4)
percent. Mr. Forman and the 8325 ME 2nd Avenue Corporation bid a rental price of $12.77 per
square foot, and $13.00 per square foot respectively. These two proposals were evaluated and
assigned 'scores using several categories such as cost per square foot, parking, location, single
user, layout functionality, access to major transportation, condition of property, accessibility to
space, amount and quality of improvements, ,and time frames for possession.
Mr. Samuel S. Forman's score placed him in second place due- to layout functionality, being a
multiple user site rather than a, single user site, and the amount' and quality of improvements.
After reviewing each location, and considering the aforementioned categories, the space located
at 8325 N.E. 2nd Avenue was selected as being the most advantageous to the City.
The administration has negotiated an agreement with principals of the 8325 N.E. 2nd Avenue
Corporation for approximately 28,019 square feet of office, classroom, and workshop space for a
price of $13.00 per square foot, plus a contingency. not to exceed $15,000 per annum for overtime
usage of the HVAC system and other electrical services.
The administration recommends placing this agreement on the November 16, 1999 City
Commission agenda. All costs associated with the agreement and expansion of services will be
paid from grant sources and will not require a contribution from the general fund.
Highlights of the Agreement are as follows:
Term: Commences upon full execution of . the Agreement and terminates seven
years after Lessor grants Possession of the space to the City.
Options: One five-year option automatically renewed. Lessee may elect not
to extend by providing the Lessor not less than six months notice.
Rent: $30,353.91 per month.
$13.00 per square foot (gross basis, exclusive of janitorial), plus contingency
not to exceed $15,000 per annum for additional usage of the HVAC system
and other electrical services.
Utilities: All utilities used during normal operating hours, with the exception of
telephone, will be paid by Lessor.
Adjustment to Initial Term - None
Monthly Feb: Option Period - To be determined by appraisal
Security Deposit: None.
Honorable Mayor and Members
of the City Commission
Page 3
Taxes: All taxes will be paid by Lessor.
Repairs: All repairs shall be the responsibility of the Lessor unless such repair is
necessitated by the negligence or willful misconduct of the Lessee.
Fund Allocation: Account Code Numbers: 113008-599020-620, 799302-452423-620, 113005-
599017-620, 799234-459116-620.
List of Officers: John H. Gerken, Director
Katheryn G. Whitehead, Director
DHW:DB:LB:AF:PK City Commission -Cover Memo-8325-11-9-99.doc
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