HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID:
Date: 6/22/2005
Requesting Department: Economic Development
Commission Meeting Date: 7/28/2005 District Impacted: 3
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
['Other
Subject: Lease Agreement with Rayos Del Sol, Ltd.
Purpose of Item:
Authorize the City Manager to execute a Lease Agreement between Rayos Del Sol, Ltd. ("Lessor"),
and the City of Miami ("Lessee"), in substantially the attached form, for the lease of approximately
1,236 square feet of office space located at 185 Northwest 13th Avenue, Miami, Florida. The lease is
for a term of seven (7) years that shall commence no later than four (4) months after Lessee issues
notice to proceed with construction of the premises to Lessor and Lessee physically occupies the
Premises. The lease term has an option to extend for two (2) additional five-year terms subject to
mutual consent of the parties. Rent for the first year shall be at a rate of $12.00 per square foot or
$1,236.00 per month with rent for subsequent term years to be adjusted based on increases in
Consumer Price Index (CPI) but shall not be less than two percent (2%) and shall not exceed four
percent (4%). Lessor to provide Lessee with complete build -out of the Premises, pay all common
area operating charges, and provide four (4) reserved parking spaces for Lessee, with other terms and
conditions as more particularly set forth in the lease agreement.
Background Information:
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 for the NET. On November 18, 2004, the City
Commission authorized the City Manager to execute a lease agreement with Rayos Del Sol, Ltd. that
included the owner providing complete build -out of the space not to exceed $80,000 for the City
based on the City's design specifications. However, the design specifications caused the construction
cost to exceed the agreed upon $80,000 as stipulated in the lease, and changed the square footage
from 1,200 square feet to 1,236 square feet. The parties renegotiated the build -out so that the
construction costs would be affordable to the owner and accommodate the City. 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 through the termination date based on straight-line depreciation of
Lessor's build -out cost which total cost shall not exceed $80,500 which shall be an additional
expenditure to the City's general fund. Comparable rental rates for the area range from $13.00 to
$18.00 per square foot.
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AGENDA ITEM SUMMARY FORM
Subject: Lease Agreement with Rayos Del Sol, Ltd.
Budget 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: 145001.25113.6.620
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:
CIP
If using or receiving capital funds
Grants
Final Approvals
(SIGN AND DATE
Budget
Purchasin "-y-,�
Ch ?d/
Dept. Director
City Manager
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