HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID: t — d as 9
Date: 5/11/2006
Commission Meeting Date: 6/8/2006
Requesting Department: Public Facilities �� 10 ��
District Impacted: n/a 2006 flfil 11
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Lease agreement with AVS International Group, Inc. to rent warehouse for City use.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, authorizing the City Manager to
execute a lease agreement ("lease"), in substantially the attached form between the City of Miami
("City") and AVS International Group, Inc. ("Lessor"), for the City's use of 2,000 square feet of
warehouse space (the "Premises") in Miami -Dade County; said lease to be for initial term of one year
to retroactively commence on January 1, 2006 with a monthly rent of $1,833 ($11.00 per square foot
/$22,000 annually), and will allow for up to five (5), additional one-year options to renew with rent
remaining the same for the first two options and mutually agreed rent amounts for the remaining
options years; allocating funds therefore from Account Code No. 001000.290201.6.610; with other
terms and conditions as more particularly set forth in the lease; further authorizing the City Manager
to approve and execute non -substantive amendments to such agreement as needed.
Background Information: See attached
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: 001000.290201.6.610
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: $22,000
CIP
Final Approvals
(SIGN AND DATE)
Budget
If using or receiving eti it&ffunds
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Purch 11 hJ�/�►
Grants
Chi
Risk Managemen
Dept. Director
City Manager
Paee 1 of 2
Subject: Enter lease agreement with AVS International Group, Inc. to rent warehouse for City use.
Background Information:
This is a renewal of a lease between the City of Miami and AVS International Group, Inc. for warehouse
space for City use. On January 1, 2005 the City of Miami entered into a one year lease which had a
right to renew for another year at mutually agreeable terms. With this resolution, the City of Miami is
now exercising its right to renew and will enter into a new one year lease, which will also provide for
five (5), one-year additional renewal options with the first two options (2007, 2008) locked in at the
same rental rate as currently charge ($11 per square foot); the options for 2009 — 2011 will be mutually
agreed to. Funds for this lease will be paid from General Funds.
The price of $11 per square foot was recently negotiated downward from an original amount of $13.20.
The Department of Public Facilities undertook a survey of available spaces in the vicinity and found that
the subject property's price is very competitive given the quality of the space rented, its relatively new
construction (2003), and the limited availability of alternative sites that meet the City's needs. The
available properties surveyed were generally unnecessarily large and/or lacked desired features. To
summarize, comparative rental rates for the subject were found to be between $8.47 and $10.50.
However, after adjusting for desirable qualities which the comparatives lacked and the size of the
facilities, the new lower price of $11 per square foot of the subject property is reasonable.
Paae 2 of 2