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Home My WebLink AboutM-99-0190F 13 T^ =tir_,. The Honorable Mayor and Members of the City Commission r Donald H. Wars aw City Manager City Commission Agenda 1999 RECOMMENDATION: FES 1 2 1999 Lease Agreement between the City of Miami and the 8325 N.E. 2nd Avenue, Corp. The, administration recommends that the City Commission approve the Resolution authorizing the City Manager to execute a Lease Agreementattached substantially the attached form, with the 8325 N.E. 2n1 ("Agreement"), a Florida in Corporation. This Agreement is for the use of approximately Avenue, Corp., a Flr classroom, and workshop space for the Office of Workfrce Development. It square28,019 feetof office, ill be located at 8325 N.E. 2nd Avenue, Miami, Florida. The terms of the Agreement include a monthly fee of Thirty Thousand Three Hundred F' Seven year term with One Five-year option, d terms and conditions ionns a100 smore set forth in the Agreement. ($30,353.91), a particularly BACKGROUND: The opening of the City of Miami Office of Workforce Development in the Little Haiti from which to provide expanded services is necessary to meet aiti Area The Office of Workforce Development has determined that the space located at 2nd Avenue, Miami, Florida is suitable for the requirements grant funding requirements. associated with this lease and e q ments of their program. 8325 N.E. Will not require a contribution from the general fundservices will be paid from All costs grant sources and Highlights of the Agreement are as follows: Use Period: Commences upon full execution of this Lease Agree terminates seven years after Lessor grants Possession of ofwent and the City of Miami. the space to Options: One Five -Year option automatically renewed. Lessee may elect to extend by providing the Lessor not less than six months otice.ot Use Fee: $30,353.91/mo. $13.00 per square foot (gross basis, exclusive of janitorial) + S°'�;'�+?kr�'+�Furi`,�ae�r`'�v��h��tz'�`k7i�`Li?"• s� ki f 4 5 k kk t r�1x•�r�r�.rY7iJt�tij � �r 5 ' Honorable Chairman and Members of the City Commission Page 2 Utilities: All utilities, with the exception of telephone, will be paid by Lessor. Adjustment to Monthly Fee: Initial Term - None Option Period - To be determined by appraisal Security Deposit: None. 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. Comparable Rates: The comparable rates which were obtainable ranged from $8.00 - $11.50 per square foot, however, they would include not utilities, and would require the City to provide interior construction. Fund Allocation: Account Code Numbers: 113008-599020-620, 113010-590323-620, 198007-630104-620, 702605-459010-620, 799612-459047-620, 799302- 452423-620, 198004-639001-620, 113005-599017-620, 799234-459116- 620, 184096-454012-620. List of Officers: John H. Gerken, Director Katheryn G. Whitehead, Director �21ni''S DIiW. B: :JLR City commission -Cover Mem"325.2.11.99.doc 99-- 19U CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO The Honorable Mayor and Members of the City Commission FROM: Lo?H. Warshaw City Manager DATE MAR 15 S99 FILE. SUBJECT. Lease Agreement between the City of Miami and the 8325 ATE 20d REFERENCES: Avenue' Corp. ENCLOSURES: This men' Mulum serves as a response to the Commission's concerns expressed at its meeting of February 23, 1999 concerning the proposed lease between the City of Miami and 8325 NE 2'd Avenue, Corp. C`Owners') for the City's leasing of space at 8325 NE 20d Avenue, Miami, Florida cTremises'). Location: The location of this building is extremely attractive because it is located in the heart of the Edison/Little River area, along NE 20d Avenue. A significant number of clients served by the Department of Community Development primarily rely on public transportation as their primary mode of transit. This location is on a major traffic artery on which mass transportation is provided. The Haitian community, as well as other target populations within the City of Miami, will benefit from the hands-on training in the building trades and computer application areas, together with greater accessibility to the housing staff. Suitability of Site: The size of the Premises meets the needs of the Department of Community Development providing the minimum allowable square footage (20,000 s fl which is needed for the programs to be offered Within this location the Department of Community Development will provide case management, job placement, housing services, as well as a building trades program, a computer lab, and training/classroom space. Case management involves evaluating the needs of individuals and facilitating their employability. All of these components will be utilized to build the skills of our clients for the purpose of improving their employment outlook. The Owner is willing to provide an all-inclusive lease which includes such things as equate parking, containers for the garbage and construction material along with their scheduled pick-ups, and wiring for telephones/computers. 09- 190 iea»a' The Honorable Mayor and Members of the City Commission Page 2 Build -out: Of notable importance is the fact that the Owner is willing to build -out the space to the Office of Workforce Development's s estimated build -out is currently $858 520. P�ifications. The construction of offices, classroums and work The build -out includes dwhich meet the imension criteria of the Office of Workforce Development. The build-out further encompasses electrical work capacity of equipment to be o required to meet the increased a sound insultio Aerated at this location, and installation of n, ceramic tile floors on portions of the space, within the offices, an acoustical ceiling and li ��g Premises. The Owner will additionally gh�g throughout the increase the current y install an elevator which will to 28,019 s s9� footage of the building from 27,019 s q°� feet. As Part of the build -out the Owners q feet that all items included in the build -out are guarantees for the ttherm of the rt lease. The investment by the Owner in these improvements increase in the assessed value of the site. This u will result s an tax revenue to the City. result in an increase in I'lining' A► quick turnaround time in building out the the Department of Comm space the specifications of that is allocated for thus Community Development is critical since the funding grants. These grants e adversely is received from performance -based cannot be achieved. PerthLease the affected if the time Owners will complete the burro o�trt Within six months time thus Navin Department of Community having Development,s Pe negative impact upon the orrnance Rent Analysis: �The rent will be a flat rate of $13.00 sf for Please find attached a list of com the initial seven year terns. attached, we conclude the rent to be in -line with or thehe area. Based on the Code Com liance: market for the area. p The Building and Zoning department has scheduled a walk- of Premises to review the condition of the building , the Lessor shall be required to r g As Per the Lease, the Premises will not be in represent that at the Possession Date the violation of any building code, environmental regulation or other governmental Ordinance 40 year re -certification of the buinance or regulation, inclusive of the Tepresent that it has received no notice of any such violla on. warrant and Ordi ftirth 99- 190 The Honorable Mayor and Members of the City Commission Page 3 Parking Commitments: The owner has negotiated with two separate parties to provide 76 parking spaces within a reasonable distance from the Premises. These locations are acceptable to the Office of Workforce Development. A copy of the letters of commitment from the two parties are attached hereto. This lease will not be executed prior to the execution of the parking leases. City's Right to Reduce Square Footage: In the event fimding for this program is reduced, the City has the right to reduce the square footage it occupies by providing the Owner at least six months notice in advance of the projected reduction in funding. City's Right to Tate: The City has the right to terminate this lease by providing the Owner at least ISO days notice if the program is downsized or discontinued at this location. An acknowledgment is included in the lease that the Owner is fully aware that the City's program is grant funded. Being aware of this, the Owner is still willing to build -out the Premises and the Owner will not hold the City responsible for any expenses associated therewith in the event the City exercises its option to reduce its square footage or terminate the lease. DHW:DB:Mmf aa.&c Enclosures 99- 190 Sheetl Little River Comps Conshwoon LoaJlon & Contact Rent P.S.F. EWater Debris Pick ua Bund-Qut S,eeoe AvWebb Note 7900 BMcayne Blvd $9 410 Not included Not Included Not Included Not Included 16,000 C m not $13w 10 do par square bu -old for Mee 1001. Todd Laord7WI Additional Charge (30S) 7li8.1177 7a00 N E 2 Avenue S 17.50 Included Included Not Included Not Induded 1,500 Kim Spicer (800) 7864398 Ed 122 8032 N.E. 2 Avenue = 11.50 Not Included Not Included Not Included Not Included FIrud Bud (305) 5M2833 8M N.E. 2nd Ave. (1st Floor) $12.00 Sam Foreman (305) 7564M (2nd Floor) i10-s12 Biscayne (2nd Floor Spaoe) $12415 Shopping Center Madeline Garcia (3t15) 356.6700 LO C) Not Included Not Included Not Induded Included Included Induded Induded Not included Available at Additional Charge Induded Included Induded Not Included Avaltable at Additional Charge Page 1 8.000 Recer* 50M. 10,000 +1- Owner not able to provWs both floors with a1 utilities and buiid-oot for 14,000 +1- $13.00 per square loot or lass. B Aft has good perking facdlfes. 7,500 Only Improvements by Lwhdlord would Yrckude carpsts and painting. Lessee responsible for sledricd oanunption outside do rw mw operating haul of Mown - 8:00pm FES-25-99 THU 16:22 P,02 DAVE MORMSON RESIDENTIAL 1510 S. TBAM DR REAL B$=, INC. MUM BBAm n 8a141 DM (!06) 8A9-W W (505) 8/7.016 February 25, 1999 John Gerren c/o 8325 NE 2nd Avenue Corporation 209 NZ 96 Street, Quite 8 Miami Shares, -FL 33238. Dear Mr. Ger'ren, 18190 �1sc�BwD. AYBNTtMk FL Z3160 EV C3* 931.70 This letter is to confirm that we have agreed in principle to lease 24 parking spaces on our -property at $301 NE 2 Avenue, Little River, Miami; FL. This agreement is subject to a full execution by both parties of a lease document. I am looking forward to concluding this lease agreement shortly. sincerely, Dave Morrison durable family power of attorney' for Mrs. J. D. Morrison, a/k/a Lil Kirk H. Morrison FOR Ova% 90 YEAas. 0 MAr INU $CAL ESTKTZ EAyx. As /o&lua dV OwW MW OMW M#Wdr of CQUWdR Baxk#r RSW Xdo4 Corporation 9 9 ` 190 FFB-26-99 FRI 11:06 AM { P. 02/09 February 24, IM W. John IL Gain 8325 NE 2nd Ave= M&nt Florida 33132 1tE: Mtmick* Lot'No. 4, Located at NE 82nd Terrace and 1 st place Dear' Rsr, Gerken: This co»spondenc e siuU $Me as a no p �er��-City c% John Ii4 'Ciaticen as letter of intent be fit 8325 NE 2nd ( "><.essee', and The D� of t�8f-Street a of 1� (aa'�Usson. with regard to a lease agreementat the � Lot. It is the desire afthe lsrfm to enter into a lease agreement subject to review and approval by the parties &W d*k respective attorneys. The Proposed lease is for a tear of seven (7) Years Lessor. with an option to c aend for a two (2) year tern upon the sole approval of the Please fed free to contact tyre should your require any furth matter. er information reg8rding this Sin y, Lu 'ca Cus omen Service Supervisor Lessee 8325 NE 2nd Avenue, Corp. c% John Ii Gerken P=h&kft4 Lessor Department of Off -Street Parking Executive Director D� O r%loarment of Off Sweet parkins . !sC Third c a d S : ��t Miami, Plorlda 3313. • ;