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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #4164 Date: 05/14/2018 Commission Meeting Date: 05/24/2018 Requesting Department: Department of Real Estate and Asset Management Sponsored By: District Impacted: District 2 Type: Resolution Subject: Lease Agreement - One Flagler, LLC Purpose of Item: A Resolution of the Miami City Commission, with Attachment(s), authorizing the City Manager to execute a Lease Agreement ("Agreement"), in a form acceptable to the City Attorney, between the City of Miami ("City") and One Flagler, L.L.C., for the use of approximately Eleven Thousand Three Hundred Ninety Square Feet (11,390 SF) of office space in the building located at 14 NE 1ST Avenue, Miami, FL, for the Department of Community and Economic Development ("CED"), with a monthly rental fee of Twenty Two Thousand Three Hundred Five Dollars and Forty Two Cents ($22,305.42), with additional operating expenses estimated at Two Dollars Per Square Foot ($2.00 PSF) and increases of Two and One Half Percent (2.5%) per year, for a period of Five (5) years with Two additional Three (3) year options to renew; with terms and conditions as more specifically set forth in the attached Lease Proposal and to be further detailed in said Agreement. Background of Item: The City's Department of Real Estate and Asset Management ("DREAM") was tasked by the City Administration to find suitable office space to move CED to a nearby location to enable the necessary growth of other City Departments. The Miami City Commission had approved Resolution R-18-0046 on February 8th, 2018 for an agreement with 33 Downtown, LLC to serve this purpose but when the construction costs associated with the buildout of the space were discovered, it became cost prohibitive. As a result of the extensive cost of the buildout, DREAM is requesting that Resolution R-18-0046 be rescinded. DREAM has reviewed the current inventory of office space(s) on the market, and was able to locate a suitable location that fits the needs of CED and includes the build out of the space at a base rate of $23.50 per square foot, with additional operating expenses estimated at $2.00 per square foot, a security deposit equal to one month's rent and increases of two and a half percent (2.5%) per year. The City and One Flagler, LLC ("Lessor"), wish to enter into a Lease Agreement ("Agreement") for a period of five (5) years, with two additional three (3) year options to renew, in a form acceptable to the City Attorney. Funds for the buildout of the space are to be allocated from CIP Project 40-B183101. Budget Impact Analysis Item is an Expenditure Item is NOT funded by Bonds Item is NOT Related to Revenue Total Fiscal Impact: Start Up Capital Cost:$312,000.00 Rental Cost:$267,665.00 per year with 2.5% annual increases Operating Expense Cost:$22,780.00 per year estimated Total Fiscal Impact: $602,445.00 General Account No: 544000 Rentals and Leases CIP Project No: 40-B183101 Reviewed B Real Estate and Asset Management Aldo Bustamante Office of Management and Budget Carolina Aguila Office of Management and Budget Yvette Smith Office of Management and Budget Christopher M Rose City Manager's Office Fernando Casamayor City Manager's Office Nikolas Pascual Legislative Division Valentin J Alvarez Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Nicole Ewan Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Clerk City Clerk's Office Department Head Review Budget Analyst Review Budget Analyst Review Budget Review Assistant City Manager Review City Manager Review Legislative Division Review Deputy City Attorney Review Approved Form and Correctness Meeting Completed Skipped Completed Completed Completed Completed Completed Completed Completed Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 05/14/2018 3:37 PM 05/15/2018 9:53 AM 05/15/2018 11:47 AM 05/15/2018 5:48 PM 05/15/2018 6:04 PM 05/15/2018 6:07 PM 05/15/2018 6:15 PM 05/15/2018 6:59 PM 05/15/2018 7:38 PM 05/24/2018 9:00 AM 05/24/2018 2:56 PM 05/24/2018 3:01 PM 05/24/2018 3:02 PM City of Miami Legislation Resolution Enactment Number: R-18-0211 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 4164 Final Action Date:5/24/2018 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), RESCINDING RESOLUTION NO. 18-0046, ADOPTED FEBRUARY 8, 2018, WHICH AUTHORIZED THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT FOR OFFICE SPACE FOR COMMUNITY AND ECONOMIC DEVELOPMENT ("CED") WITH DOWNTOWN 33, LLC AND SUBSTITUTING IN LIEU THEREOF THIS RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT ("AGREEMENT"), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND ONE FLAGLER, LLC. ("LESSOR"), FOR THE USE OF APPROXIMATELY ELEVEN THOUSAND THREE HUNDRED NINETY SQUARE FEET (11,390 SF) OF OFFICE SPACE IN THE BUILDING LOCATED AT 14 NORTHEAST 1ST AVENUE, MIAMI, FLORIDA, FOR CED, WITH A MONTHLY RENTAL FEE OF TWENTY TWO THOUSAND THREE HUNDRED FIVE DOLLARS AND FORTY TWO CENTS ($22,305.42), WITH ADDITIONAL OPERATING EXPENSES ESTIMATED AT TWO DOLLARS PER SQUARE FOOT ($2.00 PSF) AND INCREASES OF TWO AND A HALF PERCENT (2.5%) PER YEAR, FOR A PERIOD OF FIVE (5) YEARS WITH TWO (2) ADDITIONAL THREE (3) YEAR OPTIONS TO RENEW; WITH TERMS AND CONDITIONS AS MORE SPECIFICALLY SET FORTH IN THE ATTACHED LEASE PROPOSAL, ATTACHED AND INCORPORATED AS EXHIBIT "A", AND TO BE FURTHER DETAILED IN SAID AGREEMENT. WHEREAS, the City of Miami's ("City") Department of Real Estate and Asset Management ("DREAM") was tasked by the City Administration to find suitable office space to move the Community and Economic Development ("CED") Department to a nearby location to enable the necessary growth of other City Departments; and WHEREAS, on February 8, 2018, the City Commission adopted Resolution No. 18-0046 authorizing an agreement with 33 Downtown, LLC to serve this purpose; and WHEREAS, during the due diligence period, it was determined that the construction costs associated with the buildout of the space would be cost prohibitive; and WHEREAS, as a result, DREAM further reviewed the current inventory of office space(s) on the market and was able to locate a suitable location that fits the needs of CED and includes the build out of the space at a base rate of $23.50 per square foot, with additional operating expenses estimated at $2.00 per square foot, a security deposit equal to one month's rent, and increases of two and a half percent (2.5%) per year; and WHEREAS, the City and One Flagler, LLC ("Lessor") wish to enter into a Lease Agreement ("Agreement") for a period of five (5) years with two (2) additional three (3) year options to renew, in a form acceptable to the City Attorney; and WHEREAS, funds for the buildout of the space are to be allocated from Office of Capital Improvements ("OCI") Project No. 40-B183101; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference and incorporated as if fully set forth in this Section. Section 2. Resolution No. 18-0046, adopted February 8, 2018, is hereby rescinded. Section 3. The City Manager is hereby authorized' to execute an Agreement, in a form acceptable to the City Attorney, between the City and the Lessor for the use of approximately Eleven Thousand Three Hundred Ninety (11,390) square feet of office space in the building located at 14 Northeast 1st Avenue, Miami, Florida for the CED with a monthly rental fee of Twenty Two Thousand Three Hundred Five Dollars and Forty Two Cents ($22,305.42) with additional operating expenses estimated at Two Dollars per Square Foot ($2.00 PSF) and increases of Two and a Half Percent (2.5%) per year, for a period of five (5) years with two (2) additional three (3) year options to renew, with terms and conditions as more specifically set forth in a Lease Proposal, attached and incorporated as Exhibit "A", and to be further detailed in said Agreement. Section 4. Funds for the rent are to be allocated from CED's budget and funds for the buildout of the space are to be allocated from OCI Project No. 40-B183101. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, City Attor ey 1 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.