HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO :
The HonorableMayor and Members
e City ommission
JULi7
DATE : FILE :
SUBJECT : Lease Agreement for New Flagler
Street Neighborhood Enhancement
Team
FROM : Jo iola REFERENCES :
C ie Administrator/City Manager
ENCLOSURES:
RECOMMENDATION:
The Administration recommends that the City Commission approve the attached Resolution
authorizing the City Manager to execute a Lease Agreement (the "Lease"), in substantially the
attached form, between Amer Holding LLC (the "Lessor"), and the City of Miami ("Lessee").
This Agreement is for the use of approximately 1,000 square feet of space within the building
located at 4343 Flagler Street, Miami Florida, to be occupied by a new Neighborhood
Enhancement Team. The Lease shall be for: 1) a term of five (5) years that shall commence on
the possession date, with an option to extend for two additional three (3) year terms subject to the
mutual consent of the parties; 2) Lessee to pay rent at a rate of $15.00 per square foot or
$1,250.00 per month for the first year, thereafter rent to be adjusted annually based on the
increase in Consumer Price Index ("CPI"); 3) Lessor to pay all common area operating charges;
and 4) Lessor to grant Lessee three months rent credit for Lessee's build -out of premises, with
terms and conditions as more particularly set forth in the Agreement.
BACKGROUND:
The City of Miami is interested in establishing a new Neighborhood Enhancement Team
("NET") office in District 4 on West Flagler Street, which was not previously provided but is
needed to serve the community. The Administration negotiated with Amer Holding LLC, owner
of the property at 4343 West Flagler Street, to lease office space that includes the City of Miami
making certain alterations to the space such as remove interior partitions, glass wall and relocate,
relocate pass thru window, relocate electrical outlets, install drywall partitions, install new door
leading into space in order to accommodate the new Net office. Comparable rent rates for the
area range from $14.50 to $20.00 per square foot.
Highlights of the Lease Agreement are as follows:
Lessor: Amer Holding LLC , a Florida Limited Liability Company.
Term: Five (5) years.
Option: Two (2) three (3) year options to renew.
The Honorable Mayor and Members
of the City Commission
Page 2...
Rent: $15.00 per square foot or $1,250.00 per month, to commence four months
after possession date.
Rent Increase: Annually after the 1st year based upon increases in CPI.
Security
Deposit: No security deposit is required.
Improvements: Lessee to provide all improvements. Lessor to grant Lessee three months
rent credit for Lessee's build -out.
Common Area
Charges: Lessor shall pay all common area charges.
Parking: Parking spaces shall be used in common with other tenants in the building.
Utilities: Lessor pays except for telephone and cable television service.
Maintenance: Lessor pays.
Financial Impact: There is a financial impact of $1,250.00 per month in expenditures to the
City's general fund. The account code for this expenditure is 145001.25113.6.620
JA/LMHTlaCI 3K/Flagler Street NET Offce.doc