HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM CA.5
FILE ID: 10-0010,�>
Date. 01/20/2010 Requesting Department: Public Facilities (Asset Management)
Commission Meeting Date: 02/11/2010 District impacted: NIA Law Department
Type: ® Resolution ❑ ordinance ❑ Emergency Ordinance ❑ Discussion Item Matter ID No.
10- 331
Other
Subject: Lease Agreement with Golden Sands Allapattah Corporation to rent office space for use by the Miami
Police Department's Internal Affairs Division.
Purpose of Item:
A Resolution of the Miami City Commission authorizing the City Manager to execute a Lease Agreement, in
substantially the at form (the "Lease"), between the City of Miami ("City") and Golden Sands Allapattah
Corporation, Inc. (the "Lessor"), for the use of approximately 9,000 square feet of the property located in
Miami, Florida (the "Premises"), for the purpose of providing office space for the Internal Affairs Division of
the Miami Police Department with a monthly rent of $11,437.50 ($15.25 per square foot), for the period of'.
one (1) year and a $15.00 charge per hour for overtime air conditioning usage, allocating funds from the,
Miami Police Department's budget, with terms and conditions as more specifically set forth in said Lease,
Background Information:
See Attached.
Budeet Impact Analysis
NO is this item related to revenue?
YES Is this item an expenditure? If so, please identify funding source below.
General Account No: 00001.190041.544000.0000.00000
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $151,650.00
Final Approvals �
(SIGN AND DATE)
CIP N/A Budge
If using or receiving capital funds �lsj
Grants N/A Risk Management
Purchasing_ N A Dept. Director
Chief City Manager
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ITAke
Subject: Lease Agreement with Golden Sands Allapattah Corporation to rent office space for use by the Miami
Police Department's Internal Affairs Division.
Background Information:
On July 25, 2002, the City Commission adopted Resolution No. 02-900, which authorized the City Manager to
execute a Lease Agreement (the "Lease") with Golden Sands Allapattah Corporation (the "Lessor") for
approximately 9,000 square feet of space (the "Premises"), to be used as office space for the Internal Affairs
Division of the Miami Police Department, located in Miami, Florida. The Lease included an initial term of one
year, with the option to renew for five (5) successive terms of one (1) year each at a rental rate amount to be
negotiated by the parties. The City negotiated that the rental rate of $14.50 per square foot remains the same
for the first renewal term. Thereafter, the annual rent was adjusted based upon increases in the Consumer
Price Index ("CPI"), but not to exceed a maximum annual increase of three percent (3%). Additionally, the initial
lease required the Miami Police Department to pay $15.00 per hour for overtime air conditioning usage, at the
time estimated to be $1,200 per month. The City and the Lessor entered into a Lease on November 20, 2002.
On February 12, 2004, the City Commission adopted Resolution No. 04-0056, which authorized the City
Manager to execute Amendment No. 1 to the Lease with the Lessor, extending the term of the Lease for a one
(1) year period at a rate of $14.50 per square foot with the option to renew the Lease for four successive one (1)
year terms, each with further annual increases calculated based upon increases in the Consumer Price Index
("CPI").
The Lease has since expired and the Miami Police Department has remained on the Premises on a month-to-
month tenancy at a rate of $16.32 per square foot. The Miami Police Department would like to continue
occupancy of the Premises. As such, it wishes to pursue a Lease with the Lessor. The City and the Lessor wish to
enter into this Lease for a period of one (1) year, with the option to renew for two (2) successive terms of one
(1) year each. The City has negotiated a rental rate of $15.25 per square foot, which represents a reduction of
$1.07 per square foot from the last rental rate of $16.32 per square foot. Any Lease options the Miami Police
Department should exercise will cause the annual rent to be adjusted based upon increases in the CPI, but not
to exceed a maximum annual increase of three percent (3%). Lastly, the Lease, as previously agreed, requires
the Miami Police Department to pay $15.00 per hour for overtime air conditioning usage, which is estimated to
decrease and not exceed $1,200 per month.
Funding: Fiscal Year 2010 funding for this space was allocated from the Police departments account designated
for rental payments.
Comparables: The Department of Public Facilities undertook a competitive market analysis of comparable
spaces in the vicinity of the selected office and found that the subject property's price of $15.25 per square foot
was competitive given the office space's quality, convenience, and location.
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