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HomeMy WebLinkAboutExhibit 1AMENDMENT NO. 2 TO THE LEASE AGREEMENT BETWEEN THE CITY OF MIAMI AND AVS INTERNATIONAL GROUP, INC. This Amendment ("Second Amendment") is entered into this day of , 2011, with an effective date of January 1, 2011, by and between AVS International Group, Inc., a Florida corporation (the "Lessor") and the City of Miami, a municipal corporation of the State of Florida (the "Lessee"), for the purpose of extending and amending that certain Lease Agreement, as amended, between the Lessor and Lessee, effective January 1, 2007 (thc "Lease") as set forth herein. RECITALS WHEREAS, the City of Miami Commission adopted Resolution R-06-0700 on December 14, 2006 authorizing the City Manager to execute a lease agreement (the "Lease") between the City of Miami (the "Lessee") and AVS International Group, Inc. (the "Lessor") for the Lessee's use of 2,000 square feet of warehouse space located at 3320 NW 33 Street, Unit 3, Miami, Florida (the "Premises"); and • WHEREAS, the Lease provides an initial one year term with five additional one-year options, with any rent increases for the remaining three option years subject to City Commission approval; and WHEREAS, the City of Miami Commission adopted Resolution R-10-0052 on February 11,. 2010 authorizing the City Manager to execute Amendment No. 1 to the Lease ("First Amendment") at a mutually agreed upon rate of $1 1.00 per square foot, effective January 1, 2010 through December 31, 2010; and WHEREAS, the Lessee wishes to continue to use the Premises in year 2011 and has negotiated with the Lessor a reduction in the annual Base Rent for a one-year renewal at a mutually agreed upon rate of $ 10.00 per square foot, effective January 1, 2011 through December 31, 2011; NOW, THEREFORE, in consideration of the foregoing and of the mutual agreements and covenants of the parties as set forth in the Lease, Lessor and Lessee agree as follows: 1. Recitals. The Recitals to this Second Amendment are true and con-ect, and are incorporated herein by reference and made a part hereof. 2. Defined terms. Defined terms utilized, but not defined. in this Second Amendment shall have the same meaning ascribed to them in the Lease Agreement. 3. Conflicts. This Second Amendment shall be deemed a part of the Lease Agreement. In the event of any conflict between the Lease Agreement, the First Amendment to the Lease Agreement, and this Second Amendment, the terms of this Second Amendment- shall control. 4. Renewal option. Lessor and Lessee agree to renew the term of the Lease for the 2011 calendar year, without increase to base rent. Paragraph (b) of Section 2.1 of the Lease, entitled "Demise of Premises; Term." is amended and restated to read as follows: (b) So long as Tenant shall not then be in default under this Lease, Tcnant shall have the option to renew the term of this Lease for five (5) one-year renewal terms. Tenant may renew this Lease by giving Landlord written notice of renewal at least sixty (60) days in advance of expiration of the term then in effect. Base Rent for any renewal terms beginning in 2008 and 2009 will remain the same as the initial base rent. If Tenant elects to renew the KC- «44 5 Lease for 2010 or 2012, Landlord shall have the right in each instance to increase Base Rent. If Landlord and Tenant do not mutually agree upon any increase in Base Rent (as evidenced by city commission approval), the Lease will not renew and will expire on the next Termination Date, Other than Base Rent, all other terms and conditions of the Lease will remain in effect without amendment during any renewal terms. The initial term together with any renewal terms are collectively the "Term." Tenant elects to renew the Lease for 2011, and Landlord agrees to reduce the Base Rent for the 2011 Term as set forth in Section 3.1. 5. Base rent reduction. Lessor and Lessee mutually agree in a reduction in Base Rent for the 2011 calendar year. Section 3.1 of the Lease entitled "Base Rent," is amended and restated to read as follows: 3.1 Base Rent. Tenant shall pay -to Landlord rent for the Term ("Base Rent"), plus any initial partial calendar month, at a monthly rate of One Thousand Eight Hundred Thirty Three Dollars 33/100 Dollars ($1,833.33). Subject to Section 3.5 below, each monthly installment of Base Rent shall be payable in advance on or before the first day of each calendar month during the Term at such place as the Landlord shall from time to time designate. Base Rent for any partial calendar month shall be prorated. Tenant represents that it is exempt from Florida State Sales Tax (Exemption #230833038054C, Expiring October 2007). Tenant shall pay or reimburse Landlord for all liabilities and obligations directly paid or incurred by Landlord as a result of Tenant no longer being exempt from Florida State Sales Tax. For the 2011 Term, commencing January 1, 2011 and ending December 31, 2011, the Base Rent shall be reduced, and Tenant shall pay to Landlord rent, plus any initial partial calendar month, at an annual rate of Ten and No/100 Dollars ($10.00) per square foot (One Thousand Six Hundred Sixty-six and 66/100 Dollars ($1,666.66) per month). 6. Ratification. Except as herein modified, the parties ratify and reaffirm all of the terms and CrndiYrons�o thE`L-e -Ae-errierirant-tht-Fir3t-A rr i ndYri tristhr-Lagr-Agreement. [SIGNATURES APPEAR ON FOLLOWING PAGE] 2 IN WITNESS WHEREOF, in consideration of the mutual entry into this Second amendment, for other good and valuable consideration, and intending to be legally bound, Lessor and Lessee have executed this Second Amendment. THE AVS INTERNATIONAL GROUP, INC., a Florida corporation ("Lessor") ATTEST: By: By: ATTEST: CITY OF MIAMI, FLORIDA, a municipal corporation of the State of Florida ("Lessee") By: By: Priscilla A. Thompson Johnny Martinez, P.E. City Clerk City Manager APPROVED AS TO INSURANCE APPROVED AS TO FORM AND REQUIREMENTS: CORRECTNESS: By: By: Calvin Ellis Director, Risk Management 3 Julie O. Bru, Esq. City Attorney