HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM
FILE ID: 0 6 Daley
Date: 11/9/2006 Requesting Department: Public Fa
Commission Meeting Date: 12/14/2006 2006 NQUD1 ric'iiimlicf :
n/a
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:
Gag
�,
A Resolution of the Miami City Commission, with attachments, authorizing th
execute a Lease Agreement ("Lease"), in substantially the attached form, between
("City") and AVS International Group, Inc., a Florida Corporation ("Lessor"), fo
square feet of warehouse space (the "Premises") in Miami -Dade County, F1
be for initial term of one year to commence on January 1, 2007 with a monthl
($22,000 annually), with five (5) additional one-year options to renew; allocating f
Account Code No. 00001,199999.544000,0000.00000; with other terms and
particularly set forth in the Lease; further authorizing the City Manager to approv
substantive amendments to such agreement as needed.
Flo
y
e City MaSger-tt2
S,4 w,
the City oMi1
or the Cityzs+ussC'.•
saideatp
rent of1834;11
unds theree frpin
conditions's !fibre
e and execute non -
—11111-1—
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: 00001.199999.544000.0000.00000
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 I pact: $22,000
CIr
If using o
Grants
Purchasing
Chief
Final Approvals
LS1GN AND DATE)
Budget
Risk Mauagemen
Dept. Director
pitnl funds
City Manager
A*74104/41-te
•
Pace 1 of 2
Subject: 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. The City renewed the lease for 2006. With
this resolution, the City of Miami is now entering into a new one year lease, which will also provide for
five (5) one-year additional renewal options with the first two options (2008, 2009) locked in at the same
rental rate as currently charged ($11 per square foot); the base rent for the 2010, 2011, 2012 option
periods must be mutually agreed to by the parties. Funds for this lease will be paid from General
Funds.
The price of $11 per square foot was negotiated downward from an original amount of $13.20 in the
2006 renewal. The Department of Public Facilities undertook a survey of available spaces in the
vicinity and found that the subject property's price is still 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 $8.50
and $15 per square foot. Adjusting for desirable qualities which the comparatives lacked, the price of
$11 per square foot of the subject property is very reasonable, especially in light of the fact that it will be
locked in for two more years if the City exercise its future option rights.
w 4
Pace 2 of 2