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HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM ro 'ROM : The Honorable ljtlayorand i Commis oners (Joe rriola Cit Manager DATE : SUBJECT: REFERENCES: ENCLOSURES: October 22, 2004 Agenda Item For November 18, 2004 FILE : Department Requesting Agenda Item: Economic Development. 1. Subject: Lease Agreement for the East Little Havana Neighborhood Enhancement Team. 2. Purpose of item: 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 Rayos Del Sol, Ltd. (the "Lessor"), and the City of Miami ("Lessee"). This Lease is for the use of approximately 1,200 square feet of space within the building Iocated at 185 Northwest 13th Avenue, Miami Florida, to be occupied by the East Little Havana Neighborhood Enhancement Team. The Lease shall be for: 1) a term of seven (7) years that shall commence on the possession date which shall be no later than April 1, 2005, with an option to extend for two additional five-year terms subject to the mutual consent of the parties; 2) Lessee shall pay rent for the first year, in the amount of $12.00 per square foot or $1,200.00 per month, with rent for subsequent years to be adjusted based on increases in Consumer Price Index but shall not exceed four percent (4%); 3) Lessor to provide Lessee with complete build -out of premises; and 4) Lessor to pay all common area operating charges and provide four (4) reserved parking spaces for Lessee, with additional terms and conditions more particularly set forth in the agreement. 3. History of item: The City of Miami is interested in relocating the East Little Havana Neighborhood Enhancement Team ("NET") office from its present location at Warner Place at 111 Southwest 5th Avenue, to improve the physical conditions and quality of services that is needed to serve the community. The administration negotiated with Rayos Del Sol, Ltd., owner of newly constructed property at 185 Northwest 13th Avenue, to lease office space that includes the owner providing a complete build -out of the space based on space specifications that shall be provided by the administration to the owner. Comparable rental rates for the area range from $13.00 to $18.00 per square foot. 4. Does this item correlate with the CIP plan or Strategic Plan? If so, how? No. The Honorable Mayor and City Commissioners Page 2.. 5. Does this item have any effect on residents within the City of Miami? If so, how? Yes. It shall improve the physical conditions and quality of services that is needed to serve the community. 6. Will this item impact any specific District? If so, which one? Yes. District 3. 7. Does this item have any fiscal impact? (please provide dollar amount) There is a financial impact of $1,200.00 per month in expenditures to the City's general fund. The account code for this expenditure is 145001.25113.6.620. Furthermore, if the City elects to terminate this Lease at any time prior to expiration of the initial term, the City is required to reimburse Lessor the unamortized balance based on straight-line depreciation of Lessor's build -out cost which total build -out cost shall not to exceed $80,000.00 which shall be an additional expenditure to the City's general fund. Approved by: Director / Chief / Manager