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HomeMy WebLinkAboutR-87-0591J-87-599 6/15/87 RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH MCF CORPORATION, A MINORITY COMPANY, TO PROVIDE FOR LEASING APPROXIMATELY 25,630 SQUARE FEET OF OFFICE SPACE IN THE BUILDING LOCATED AT 3006 AVIATION AVENUE WITH FUNDS THEREFOR ALLOCATED FROM THE APPROPRIATE BUDGETED DEPARTMENTAL FUNDS. WHEREAS, on March 24, 1987, the City's General Services Administration Department issued request for bids 86-87/072 for the lease of approximately 25,000 square feet of office space in the Coconut Grove area; and WHEREAS, MCP Corporation, a minority company, was the sole respondent to this competition and its bid was found responsible and responsive to the request for bids; and WHEREAS, Resolution 87-416 passed and adopted on May 14, 1987 accepted MCF's proposal and authorized negotiation of an agreement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute a lease agreement, in a form acceptable to the City Attorney, with MCF Corporation, a minority company, to provide for leasing approximately 25,630 square feet of office space in the building located at 3006 Aviation Avenue with funds therefor hereby allocated from the appropriate budgeted departmental funds. PASSED AND ADOPTED this 25th day of June , 1987. ATTE XAVIER L. SUREZ MAYOR MA7TY HIRAI, CITY CLERK PREPARED AND APPROVED BY: 7 ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROV AS;TO FORM AND CORRE NESS: /LUCIAI A. DOUGHERZ 'CITY ATTORNEY ty CO MISSION MEETING OF JUN "5 199 i M No. CITY OF MIAMI. FLORIOA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Cesar H. Odio City Manager RECOMMENDATION: GATE: J U N 1 71987 ME: SUBJECT: Resolution Authorizing Execution of a Lease Agreement with MCP REFERENCES: Corporation ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached resolution authorizing execution of a lease agreement with MCF Corporation, a minority company, for the lease of 25,630 square feet of office space, situated at 3006 Aviation Avenue, in Coconut Grove. BACKGROUND: The General Services Administration Department issued a request for bids #86-87/072 on March 24, 1987, for the lease of office space in the Coconut Grove area. MCF Corporation was the sole bidder in this competition and its proposal was responsible and responsive to the bid. Consequently, the proposal was presented for acceptance by the City Commission. Resolution 87-416 passed on May 14, 1987 accepted MCF's proposal and authorized negotiation of a lease agreement, to be later presented to the City Commission for final consideration and approval. Property & Lease Management has been negotiating the terms and conditions of the attached agreement, which is currently being reviewed by the City Attorney's office. The initial term of the lease agreement is for three years, with successive one-year renewal options. The monthly base rental for Phase I is $11,293.71, and $24,401.96 for Phase II, to be paid from funds already allocated in the budgets of user departments. Attachment: Proposed Resolution Proposed Lease 3-/ 87- 5';A CITY OF MIAMI, FLORIbA TO: FROM: Honorable Mayor ind Members of the City Commission 0- Cesar H. Odio City Manager INTER-OPPICE MEMORANOUM RECOMMENDATION: DATE: J U N 17 1987 PLC: SUBJECT: Resolution Authorizing Execution of a Lease Agreement with MCP REFERENCES: Corporation ENCLOSURES: It is respectfully recommended that the City Commission adopt the attached resolution authorizing execution of a lease agreement with MCF Corporation, a minority company, for the lease of 25,630 square feet of office space, situated at 3006 Aviation Avenue, in Coconut Grove. BACKGROUND: The General Services Administration Department issued a request for bids #86-87/072 on March 24, 1987, for the lease of office space in the Coconut Grove area. MCF Corporation was the sole bidder in this competition and its proposal was responsible and responsive to the bid. Consequently, the proposal was presented for acceptance by the City Commission. Resolution 87-416 passed on May 14, 1987 accepted MCF's proposal and authorized negotiation of a lease agreement, to be later presented to the City Commission for final consideration and approval. Property & Lease Management has been negotiating the terms and conditions of the attached agreement, which is currently being reviewed by the City Attorney's office. The initial term of the lease agreement is for three years, with successive one-year renewal options. The monthly base rental for Phase I is $11,293.71, and $24,401.96 for Phase II, to be paid from funds already allocated in the budgets of user departments. Attachment: Proposed Resolution Proposed Lease 81 --5J1 • LEASE THIS LEASE AGREEMENT, made and entered into as of the day of , 1987, by and between MCF Corporation, a Florida corporation (hereinafter referred to as "Landlord"), and CITY OF MIAMI, a Municipal Corporation of the State of Florida, (hereinafter referred to as "Tenant"). W I T N E S S E T H: That the Landlord for and in consideration of the rent herein reserved to be paid by the Tenant and in consideration of the covenants herein to be kept and performed by the Tenant does hereby leas.z and demise unto the said Tenant the following described premises, situated, lying and being in the City of i Miami, County of Dade, State of Florida: The building located at 3006 Aviation Avenue, Phase I & II, Miami, Florida, along with the 53 z parking spaces, as legally described and I designated in Exhibit "A" attached hereto. 1. TERM The initial term of this Lease shall be for a minimum 3 years, with an option for renewal by Tenant as provided herein. The occupancy of the building will be in phases and the initial occupancy for Phase I is scheduled to occur no earlier than July 1987 and no later than September 1987. For purposes of clarity and consistency the 3 year term of this Lease will commence upon issuance of the temporary certificate of occupancy for Phase II which is scheduled to be no earlier than December 1987 and no later than March 1988. Landlord will give Tenant 30 days notice prior to occupancy so the Tenant can make its arrangements for moving. 2. RENT Tenant shall pay to the Landlord a base rental subject to adjustments and additions as hereafter set forth in the amount of $11,293.71 per month for the Phase I space and $24,401.96 per month for the Phase II space, available in advance for the first day of each month, plus applicable sales tax and any adjustments or additional rent as provided herein, commencing on the date of 0 occupancy which will be no earlier than July 1987 and no later than September 1987 for the Phase I space, and no earlier than December 1987 and no later than March 1988, for the Phase II space. 3. SECURITY DEPOSIT None. 4. USE OF PREMISES Tenant will use and occupy the premises for the operation of general office space and related purposes and for no other use or purpose unless prior written consent of the Landlord is obtained. 5. EXAMINATION OF PREMISES AND IMPROVEMENTS The Landlord at its expense will provide all interior partitions, rugs, paint, doors and lighting as reasonably required by industry standards up to a limit of $300,000.00. It is the responsibility of Tenant to provide all information necessary for the layout, design and construction of all interior space to be occupied. Based upon this information Landlord will provide plans to be reasonably approved by Tenant. This information must be provided by Tenant no later than June 15, 1987 in writing, in the form of a building program specifically indicating number and size of rooms, functions and relationships between spaces and departments, and number of employees. Once this information is in the Landlord's possession, an interior layout of the building will be made and submitted to the Tenant for approval. Tenant shall have five (5) working days to ;Hake any changes; otherwise such layout shall be deemed as approved by Tenant. Any such changes must be stated in writing. Landlord warrants that the electrical and plumbing fixtures, air conditioning and elevators which will be installed will be in rood operating conditions on the commencement of the Laase. If Tenant has power or equipment requirements beyond that which is the minimum required by code for such building and as installed - y - r in the premises, Tenants shall be responsible for the installation of same at its sole cost and expense. All additions, fixtures and improvements made by Tenant, except only those which shall be readily removable without injury or damage to the premises, shall be and remain a part of the premises at the termination of this Lease. In the event Tenant requires more partitions, doors and rooms than the $300,000.00 budget will enable, Landlord agrees to install such at a cost of $12.00 a running foot. - 6. PERSONAL PROPERTY All existing personal property, the use of which is deinised hereunder, shall be used at the sole risk of Tenant and at the termination of this Lease, shall be returned to Landlord in the same condition as present, damage by fire or other casualty, reasonable wear and tear excepted. All other personal property placed or moved into the premises shall be at the risk of Tenant and Landlord shall not be liable to Tenant for any loss or damage to said personal property is caused by Landlord's failure to comply with the obligations set forth in Paragraph 9(c) of this Lease, provided, however, that Tenant has complied with its duty to notify Landlord of any evidence of a roof leak or evidence that the roof is not in watertight conditions. 7. PEACEFUL POSSESSION Subject to the terms, conditions and covenants of this Lease, Landlord agrees that Tenant shall and may peacefully have, hold and enjoy the premises above described without hindrance or molestation by Landlord. 8. OBLIGATION TO SUBORDINATE Tenant agrees that this Lease shall be subject and subordinate to any mortgage or deed of trust now on the premises or which may hereinafter be made on account of any existing or proposed loan to be placed on said premises by the Landlord, to the full extent of all debts and charges secured therety, and to any replacement, supplement, renewals and extensions of all or -3- any part thereof, or to any other conveyance or encumbrance of the title to the property. Tenant agrees, within ten (10) days after request of Landlord, to execute all documents which Landlord may deem necessary to accomplish and acknowledge such subordination. In default thereof, Tenant shall hT Liable in damages to Landlord in addition to any other remedy available to Landlord in law or equity; provided, however, that so long as Tenant pays all of the monies provided hereunder and performs each and every of the other covenants of this Lease, then its right of quiet enjoyment shall not be interfered with or disturbed by reason of such subordination. In the event of subordination, a non -disturbance agreement shall be given to Tenant by each Mortgagee requesting such subordination. On request by Landlord, Tenant from time to time shall furnish estoppel letters acknowledging the status of the Lease as to payment of rent and the performance of Landlord of its obligations under this Lease. 9. RESPONSIBILITIES OF LANDLORD FOR EXPENSES OF OPERATION AND MAINTENANCE _ During the term of the Lease the Landlord shall be responsible for following maintenance, repairs and charges as follows: (a) Landlord shall pay real estate taxes assessed by Dade County and the City of Miami and all licenses and other permits required for the operations of the building itself, but not for any operations conducted thereon. However, fifty percent (50%) of any increase in any such taxes or charges over the base year of 1987 shall be considered as additional rent to be paid by the Tenant and said fifty percent (50%) of any such increase shall be paid within 30 days after notice of such increase is given to Tenant and shall be considered as additional rent to be paid by Tenant. (b) Landlord shall maintain and pay for Lnsurance against fire and other hazards to the structure and for Landlord's personal property, if any, as well as liability insurance covering Landlord's negligence. Notwithstanding C 40 M . anything herein contained, Tenant shall be required to maintain insurance on all its personal property, and for liability insurance covering Tenant's negligence as provided in Paragraph 11(a) hereof. (c) The Landlord shall maintain the roof in a watertight condition and shall maintain the outside structure of the building including windows/doors and exterior painting. Notwithstanding anything herein stated, Tenant shall have the duty to promptly notify Landlord of any evidence of a roof leak or evidence that the roof is not in watertight condition. (d) Landlord shall be responsible for all personal property taxes assessed on personal property of the Landlord. (e) Janitorial Services: Landlord will be responsible for cleaning the interior and exterior of the building, maintaining the landscaping, parking area and grounds. Interior will be cleaned twice a week on dates to be established with the Tenant. Interior cleaning will consist of one light cleaning during the week and one regular cleaning on weekends. (f) Landlord will pay electricity costs up to the amount of $25,630.00 per year, for each year of the term of this Lease. Once such sum is exceeded during any year, the overage shall be considered as additional rent to be paid by t'ie Tenant within 30 days after notice of such increase is given to Tenant. 10. RENTAL INCREASE -CPI On each anniversary date of this Lease, each year the CPI Government Index will apply to the Gross Rental paid by the Tenant and the base rental amount shall increase annually by multiplying by a fraction having as its numerator the Consumer Price Index Number of the month of December of each year of the term of the Lease beginning with December, 1987, and having as its denominator the Consumer Price Index Number for the month of December of the ensuing year of the Lease, beginning December 1988 and annually thereafter as each annual adjustment is made. - 5 - 40 M Consumer Price Index as used herein shall be the "Consumer Price Index for All Urban Consumers, U.S. City Average, All Items (1967=100)" issued by the Bureau of Labor Statistics of the U.S. Department of Labor Statistics is discontinued the Consumer Price Index published by the U.S. Department of Commerce shall be used (with proper adjustment) and if the U.S. Department of commerce index is discontinued, then Landlord and Tenant shall in good faith agree on a substitute. 11. TENANT S RESPONSIBILITIES (a) Liability Insurance: Tenant hereby acknowledges its limited waiver of sovereign immunity to the extent provided by Florida Statt!te 768.28, and Tenant further acknowledges that pursuant to the authorization contained in Florida statute 768.28(13), it is self insured for liability and Tenant agrees to indemnify and hold Landlord harmless for any and all costs, losses or liabilities incurred by reason of Tenant's acts or 1 omissions. (b) Alterations: Tenant will make no alterations, additions or improvements to the premises without the written consent of Landlord. Such consent will not be unreasonably withheld. All additions, fixtures or improvements which cannot be readily removed without damage to the premises shall be and remain a part of the premises at the expiration of this Lease. (c) Re2airs: Tenant will, at Tenant's own expense keep the demised premises in good repair and tenantable first class condition during said Lease term. Tenant will at the termination of this Lease return said premises to Landlord in as good condition as when received, excepting damage by fire unavoidable casualty and ordinary wear. (d) Tenant shall be responsible for personal property taxes, if any, assessed on its personal property. 12. RIGHT OF ENTRY Landlord, or any of its agents, shall have the right to enter said 'premises during all reasonable hours to examine the i 0 40 4 same or to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort or preservation thereof or to exhibit said premises at reasonable times within six (6) months before the expiration of this Lease. 13. CASUALTY LOSSES In the event the premises shall be destroyed or so damaged by fire or other casualty, whereby the same shall be rendered untenantable, Landlord shall have the right to terminate this Lease or to render such premises tenantable by repairs within two hundred ten (210) days therefrom. If said premises are not rendered substantially tenantable within said time, it shall be optional with either party to cancel this Lease, and in the event of such cancellation, the rent shall be paid only to the date of such fire or casualty. During any time that the premises are untenantable in whole or in part due to causes set forth in this Paragraph, the rent or a just and fair pcoportion thereof shall be abated and the Lease shall be extended for such period the rent is abated. 14. INDEMNIFICATION Landlord shall indemnify and save the Tenant harmless from and against any and all claims, liabilities, losses, and causes of action which may arise out of Landlord's activities under, this Lease and those of its officers or employees, Landlord's operation and maintenance as set forth herein, and Landlord's preparation of the demised premises for lease to Tenant, and from and against any orders, judgments or decrees wnich may be entered arising uut of said activities and from and against all costs, attorney's fees, expenses and liabilities incurred in the defense of any such claim, or in the investigation thereof. Tenant shall indemnify and save the Landlord harmless from and against any and all claims, liabilities, iosses, and causes of action which may arise out of Tenant's activities under this Lease, and those of its employees, invitees or agents, and Tenant's operations and maintenance as -7- 1, set forth herein, and from and against any orders, judgments, or decreases entered arising out of said activities and from and against all costs, attorney s fees, expenses, and liabilities incurred in the defense of any such claim, or in the investigation thereof, to the extent allowed by law. 15. ASSIGNMENT Without the written consent of Landlord first obtained in each case (but which consent shall not be unreasonably withheld) , Tenant shall not sublet or assign this Lease in whole or in part, and assignee shall have the same right of assignment, and any assignor shall have the rights and privileges of the assignor. However, any such assignment, transfer or sublease consented to by Landlord shall not relieve Tenant of its liability under this Lease. 16. ABANDONMENT If during the term of this Lease, Tenant shall abandon, vacate or cease doing business in said premises, or shall suffer the rent to be in arrears, Landlord may at its option cancel this Lease in the manner provided herein, or Landlord may enter said premises as the agent of the Tenant, by force or otherwise, without being liable in any way therefor, and relet the premises with or without any furniture that may be therein, as the agent of Tenant, at such price determine, and receive the rent therefor, applying the same to the payment of the rent due under this Lease, and if the full rental herein provided shall not be realized by Landlord over and above the expenses to Landlord of such reletting, Tenant shall pay any deficiency. 17. BANKRUPTCY It is agreed between the parties hereto t4lat: If Tenant shall be adjudicated a bankrupt or an insolvent or take tine benefit of any federal reorganization or composition proceeding or make a general assignment or take the benefit of any insolvency law, or if Tenant's leasehold interest under this Lease shall be sold under any execution or process of law, or if A n 4 A 4 a trustee in bankruptcy or a receiver be appointed or elected or had for Tenant (whether under Federal or State laws), or if said premises shall be abandoned or deserted, or if Tenant shall fail to perform any of the covenants or conditions of this Lease on Tenant's part to be performed, or if this Lease or the term thereof be transferred or pass to or devolve upon any persons, firm, corporation or entity other than Tenant, except as provided for in this Lease, then, and in any such events this Lease and the term of this Lease, at Landlord's option, shall expire and end thirty (30) days after Landlord has Tenant written notice of such act, condition or default and Tenant hereby agrees immediately then to quit and surrender said premises to Landlord. If the term of this Lease shall be so terminated, Landlord may immediately or at any' time thereafter reenter or repossess the premises and remove all persons and property therefrom without being liable for trespass or damage. The provisions of this Paragraph shall not impair or affect Landlord's right to maintain summary proceedings for the recovery of the possession of the demised premises in all cases provided for by law. 18. EVENTS OF DEFAULT The Tenant shall pay the base rent and any additional rent at the times and in the manner aforesaid in this Lease, and should said rents, or any part thereof at any time remain due and unpaid for a period of three (3) days after the same shall become due, the Landlord may, at its option, consider the Tenant a tenant at sufferance, and the Landlord may immediately reenter upon said premises and the entire rent for the remainder of the term of this Lease shall at once become due and payable and may ' forthwith be collected by distress or otherwise, or should any of i the additional rent herein reserved, or any of the other charges ' or expenses herein designated to be paid by the Tenant not be paid as and when the same become due and payable or if the Tenant i i shall default in the performance of any of the other agreements, i conditions, covenants or terms herein contained other than i• A 410 nonpayment of rent and/or additional rent, and such default continues for thirty (30) days after notice to Tenant, or if the Tenant shall abandon the demised premises, or if a petition to reorganize the Tenant is filed by the Tenant or the then owner of the Tenant's interest hereunder, or if any creditor.-: general or otherwise, of the Tenant files a petition of bankruptcy, or if the Tenant be adjudicated insolvent, or if a receiver is appointed for the demised premises in any action in law or in equity, or if the Tenant or the then owner of the Tenant's interest hereunder shall make a "general assignment: for the benefit of creditors, or take any insolvency or bankruptcy act, or a receiver or trustee is appointed of its property, or if this Lease shall be transferred, or pass to, or devolve upon any other person or corporation, except in the manner hereinbefore permitted, the Landlord shall have the right to terminate and end this Lease and the term hereby granted, as well as all of the right, title and interest of the Tenant hereunder, by giving the Tenant thirty (30) days notice in writing; and it is agreed that, upon the expiration of the time fixed in such notice, if the said default or other cause of termination specified in such notice shall not have been remedied or removed, this Lease and the term hereby granted, as well as all of the right, title and interest of the Tenant hereunder, shall, at the option of the Landlord, wholly cease and expire (except as to the Tenant's liability); and the said Tenant shall then immediately quit and surrender to the Landlord the said demised premises, and the Landlord may enter into or repossess the said demised premises. The failure of the Landlord to enforce any agreement, condition, covenant, or term, by reason of its breach by the Tenant, after notice has, shall not be deemed to void or affect the right of the Landlord to enforce the same agreement, condition, covenant or term on the occasion of a subsequent default or breach. _10_ e7-S31 // A sA In any instance, where there is a default by reason of Tenant's failure to complete an affirmative duty required by Tenant (other than with respect to the payment of money) and by reason of the nature of such affirmative duty required on the part of the Tenant, such default cannot reasonably be cured within the thirty (30) day period as elsewhere provid e:i in this Lease, then Tenant shall have such additional time as may be reasonably required to cure such default, provided, however, that Tenant commences, within said thirty (30) day period, all steps necessary to cure the default, and proceeds continuously with due diligence to cur(* such default. Should the Landlord make any payment owed by Tenant or incur any expense which is the duty of Tenant to pay, then any such payment shall bear interest at the highest legal rate and shall be collected by Landlord as additional rent under this Lease. In any instance where Tenant is in default under the terms t of the Lease or in any instance where some emergency action should be taken for the preservation or protection of the leased property or of persons using same, Landlord may take, but shall not be required to take, such action as may be reasonably required under the circumstances notwithstanding any other provisions of this Lease, and the cost incurred by Landlord with respect thereto shall be the obligation of Tenant and collected by Landlord as additional rent under this Lease. 19. SIGNS AND AWNINGS No signs or awnings shall be attached to or erected on the interior or exterior of the premises without the written consent of Landlord having been first obtained. 20. WAIVER/ENTIRE AGREEMENT No waiver of any condition or covenant of this Lease by Landlord shall be deemed to imply or constitute a further waiver by Landlord of any other condition or covenant of this Lease. The rights and remedies created by this Lease are cumulative and the use of one remedy shall not be taken to exclude or waive the -1I- r 5J1. /p'C fe (00 right to the use of another. This Lease contains the entire agreement of the parties and may not be modified or amended unless in writing signed by the party to be changed. 21. ATTORNEY S FEES AND COSTS In the event of any litigation between the parties hereto, the unsuccessful party shall be responsible for the costs and reasonable attorney's fees incurred by the successful party with respect to such proceedings. 22. TIME OF ESSENCE Time is of the essence as to the performance of all of the terms and provisions of this Lease. However, Landlord shall not be liable for any delay in rendering occupancy to Tenant caused by any matters not within its control, acts of God, strikes, lockouts or'any other reasonable delays encountered during construction. 23. NOTICE Notice whenever required or permitted under the Lease shall be given in writing and shall be deemed given when mailed by certified mail, return receipt requested, properly addressed and with the required postage affixed thereto, as follows: TO LANDLORD: MCF Corporation 338 Minorca Coral Gables, Florida 33134 TO TENANTS: City of Miami G.S.A. Department P.O. Box 330708 Miami, Florida 33233-0708 Either party may, by written notice, change its place of notice. 24. OPTION TO RENEW Provided this Lease is in good standing, Tenant may elect to extend the term of this Lease for additional, successive annual periods on the same terms and conditions at the then current gross rent being paid by Tenant, plus any additional rent and/or adjustments as called for in the Lease, automatically, without placing Landlord on notice in writing, unless by written -12- 8 7 ~-591 / 3 .le notice to Landlord, six months prior to Lease expiration, Tenant elects not to exercise any/or all annual options of renewal. 25. HEADINGS The captions and headings are for convenience only and shall not be utilized in interpreting or explaining this Lease. IN WITNESS WHEREOF, I have set my hand and seal on this day of , 1987. WITNESS: ATTESTED: Matty Hirai City Clerk APPROVED AS TO FORM AND CORRECTNESS: Lucia A. Dougherty City Attorney LANDLORD: MCF CORPORATION By: TENANT: CITY OF MIAMI By: