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HomeMy WebLinkAboutAgenda Item Summary Form111111 111111 ,1 11 7 i O'R t9 Date: 11/06/2023 AGENDA ITEM SUMMARY FORM File ID: #15011 Commission Meeting Date: 11/16/2023 Requesting Department: Department of Real Estate and Asset Management Sponsored By: District Impacted: N/A Type: Resolution Subject: Execute Lease Agreement - Kei 3567 NW 33 WRHS LLC Purpose of Item: The administration recommends that the Miami City Commission adopt the attached Resolution authorizing the City Manager to negotiate and execute a new Lease Agreement, between the City of Miami, Florida ("City") and KEI 3567 NW 33 WRHS, LLC ("Lessor") for the City's use of approximately two thousand square feet (2,000 sq. ft.) of warehouse space located at 3320 NW 35th Ave, Miami, FL 33142 ("Premises"). Background of Item: The City of Miami Commission adopted Resolution R-18-0321 on July 26, 2018 authorizing the City Manager to execute a lease agreement ("Lease") between the City of Miami ("City") and AVS International Group, Inc. (the "Lessor") for the City's use of the Premises. The Lease was for a three-year term commencing on June 1, 2018 and ending on May 31, 2021 at a rental rate of $2,200.00 per month ($13.20 per square foot). The City's Police Department's Special Investigations Section ("SIS") has continued to use the Premises on a month -to -month basis. SIS wishes to continue leasing the Premises. The City's Police Department, along with Lessor, were able to agree upon a suitable price that fits the needs of SIS. The City and Lessor, wish to enter into a new Lease Agreement ("Agreement") for a period of 10 years to commence upon execution of the Agreement. The initial Basic Monthly Rent shall be three thousand five hundred dollars and zero cents ($3,500.00) with annual increases of 3% or CPI whichever is greater. In addition to Basic Monthly Rent, an initial Additional Monthly Rent in the amount of six hundred sixty-six dollars and sixty-seven cents ($666.67) subject to change. Budget Impact Analysis Item is NOT Related to Revenue Item is an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: Total Fiscal Impact: $50,000.04 ($4,166.67 monthly) General Account No: 00001.191001.544000 Department of Real Estate Review Completed Office of Management and Office of Management and City Manager's Office City Manager's Office City Commission Legislative Division Office of the City Attorney Office of the City Attorney Office of the City Clerk Reviewed B and Asset Management 11/06/2023 8:37 AM Budget Pedro Lacret Budget Marie Gouin Larry M. Spring Arthur Noriega V Maricarmen Lopez Valentin J Alvarez James Brako Victoria Mendez City Clerk's Office Andrew Frey Budget Analyst Review Budget Review Assistant City Manager City Manager Review Meeting Legislative Division Review ACA Review Approved Form and Correctness Rendered Department Head Completed 11/06/2023 11:59 AM Completed 11/06/2023 12:59 PM Completed 11/06/2023 6:53 PM Completed 11/07/2023 6:03 AM Completed 11/16/2023 9:00 AM Completed 11/21/2023 8:09 AM Completed 11/21/2023 11:41 AM Completed 12/13/2023 12:07 PM Completed 12/13/2023 5:50 PM City of Miami Legislation Resolution Enactment Number: R-23-0497 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 15011 Final Action Date:11/16/2023 A RESOLUTION OF THE CITY OF MIAMI COMMISSION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A NEW LEASE AGREEMENT ("AGREEMENT"), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND KEI 3567 NW 33 WRHS, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("LESSOR"), FOR THE USE OF APPROXIMATELY TWO THOUSAND SQUARE FEET ("2,000 SQ. FT.") OF WAREHOUSE SPACE LOCATED AT 3320 NORTHWEST 35 AVENUE, MIAMI, FLORIDA 33142 ("PREMISES") FOR THE OPERATION OF THE POLICE DEPARTMENT'S SPECIAL INVESTIGATIONS SECTION ("SIS"), COMMENCING ON THE COMMENCEMENT DATE, FOR AN INITIAL BASIC MONTHLY RENT OF THREE THOUSAND FIVE HUNDRED DOLLARS ($3,500.00), FOR A PERIOD OF TEN (10) YEARS, IN ADDITION TO AN ADDITIONAL MONTHLY RENT OF SIX HUNDRED SIXTY-SIX DOLLARS AND SIXTY-SEVEN CENTS ($666.67), AS MORE PARTICULARLY SET FORTH IN THE DRAFT LEASE AGREEMENT; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING, BUT NOT LIMITED TO, AMENDMENTS, RENEWALS, AND EXTENSIONS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY, FOR SAID PURPOSE. WHEREAS, pursuant to Resolution No. R-06-0700 adopted on December 14, 2006, the City Commission authorized the City Manager to execute a lease agreement ("Lease") between the City of Miami ("City") and AVS International Group, Inc., a Florida Corporation ("Lessor"), for the City's use of two thousand square feet (2,000 sq. ft.) of warehouse space ("Premises"); and WHEREAS, the Lease included an initial term of one (1) year commencing January 1, 2007 and ending December 31, 2007 and provided for five (5) additional one (1) year options to renew, said options providing for the same base rent for the first two (2) renewal periods and providing that the base rent during renewal years 2010, 2011, and 2012 would be subject to City Commission approval; and WHEREAS, pursuant to Resolution No. R-10-0052 adopted on February 11, 2010, the City Commission authorized the City Manager to execute Amendment No. 1 to the Lease at a mutually agreed upon rate of eleven dollars ($11.00) per square foot effective from January 1, 2010 through December 31, 2010; and WHEREAS, pursuant to Resolution No. R-11-0353 adopted on September 15, 2011, the City Commission authorized the City Manager to execute Amendment No. 2 to the Lease at a mutually agreed upon rate of ten dollars ($10.00) per square foot effective from January 1, 2011 through December 31, 2011; and WHEREAS, pursuant to Resolution No. R-18-0321, adopted on July 26, 2018, the City Commission authorized the City Manager to execute Amendment No. 3 to the Lease at a mutually agreed upon rate of thirteen dollars and twenty cents ($13.20) per square foot effective from June 1, 2018 through May 31, 2021; and WHEREAS, since the expiration of the Lease, the City has continued to use the Premises on a month -to -month basis pursuant to the terms of the Lease; and WHEREAS, the City and the Lessor wishes to enter into a new Lease Agreement ("Agreement") authorizing the SIS continued use of the Premises; and WHEREAS, the proposed Agreement is for a ten (10) year term commencing on the Commencement Date at an initial Basic Monthly Rent three thousand five hundred dollars and zero cents ($3,500.00) in addition to an Additional Monthly Rent in the amount of six hundred sixty-six dollars and sixty-seven cents ($666.67) subject to change; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized' to negotiate and execute the draft Agreement, in a form acceptable to the City Attorney, between the City and the Lessor for a period of ten (10) years for the City's use of the Premises for the purpose of the Special Investigations Section of the Miami Police Department ("MPD") for an initial Basic Monthly Rent in the amount of three thousand five hundred dollars and zero cents ($3,500.50) in addition to an Additional Monthly Rent in the amount of six hundred sixty-six dollars and sixty-seven cents ($666.67) subject to change. Section 3. The City Manager is further authorized' to negotiate and execute all necessary documents, including, but not limited to, non -substantive amendments, renewals, and extensions, all in forms acceptable to the City Attorney, subject to all allocations, appropriations, prior budgetary approvals, and all in compliance with applicable provisions of the City Code, as may be deemed necessary for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: Pursuant to the resolution, this item became effective immediately upon adoption by the Commission. 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed by, including but not limited to, those prescribed by applicable City Charter and City Code provisions.