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2009-27186 ResoRESOLUTION NO. 2009-27186 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON SECOND READING (AND FINAL APPROVAL), FOLLOWING A DULY NOTICED PUBLIC HEARING, LEASE AGREEMENTS BETWEEN THE CITY AND 1) JEWISH COMMUNITY SERVICES OF SOUTH FLORIDA, INC.; 2) LITTLE HAVANA ACTIVITIES AND NUTRITION CENTERS OF DADE COUNTY, INC.; 3) MIAMI DADE COUNTY COMMUNITY ACTION AGENCY, INC.; AND 4) UNIDAD OF MIAMI BEACH, INC.; ALL AGREEMENTS BEING FOR USE OF THE SOUTH SHORE COMMUNITY CENTER, LOCATED AT 833 6r" STREET, MIAMI BEACH, FLORIDA; SAID AGREEMENTS HAVING AN INITIAL TERM OF FOUR YEARS AND THREE HUNDRED SIXTY FOUR DAYS, WITH AN ADDITIONAL FIVE YEAR RENEWAL TERM, AT THE CITY'S SOLE DISCRETION; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE LEASE AGREEMENTS WHEREAS, for over a decade, the South Shore Community Center (Center), located at 833 6t" Street has been host to various not-for-profit, community service organizations that provide assistance to the Miami Beach community; and WHEREAS, the various organizations, who had vacated the Center during its recent $2.7 million dollar renovation, have resumed occupancy and the City is desirous of formalizing its Landlord /Tenant relationship; and WHEREAS, the City and the proposed Tenants have negotiated the above stated Agreements, all with an initial term of four years and three hundred sixty four days, commencing on October 1, 2009, and ending on September 29, 2014, with one additional five year renewal term, at the City's sole discretion; and WHEREAS, on June 25, 2009, the Finance and Citywide Projects Committee discussed the proposed Agreements and unanimously recommended their approval as negotiated between the parties; and WHEREAS, Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, requires a competitive bidding process, a Planning Department analysis, and an independent appraisal to determine the value of the leasehold interest, as well as two (2) readings of the proposed leases, with the second (and final) reading followed by an advertised public hearing to obtain citizen input; and WHEREAS, on July 15, 2009, pursuant to Resolution No. 2009-27132, the Mayor and City Commission approved the Agreements on first reading; waived by 5/7'hS vote, the competitive bidding and appraisal requirements; and set the public hearing on September 9, 2009, for second reading and final approval of the Lease Agreements; and WHEREAS, said public hearing was held on September 9, 2009. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve on second reading (and final approval), following a duly noticed public hearing, Lease Agreements between the City and 1) Jewish Community Services of South Florida, Inc.; 2) Little Havana Activities and Nutrition Centers of Dade County, Inc.; 3) Miami Dade County Community Action Agency, Inc.; and 4) UNIDAD of Miami Beach, Inc.; all Agreements being for use of the South Shore Community Center, located at 833 6th Street, Miami Beach, Florida; said Agreements having an initial term of four years and three hundred sixty four days, with an additional five year renewal term, at the City's sole discretion, and authorizing the Mayor and City Clerk to execute the Lease Agreements. PASSED and ADOPTED this 9th day of September, 2009. ATTEST: Robert Parcher, CITY CLERK Matti Herrera ower, MAYOR JMG\HMFWP\RLR\rlr F:\RHCD\$ALL\ECON\$ALL\ASSET\6STREET.CTR\LEASESWgreements.2nd Reading.RES.doc APPRdVED AS TO FORM ~ LANGUAGE t!< FOR EXECUTION I ~~ m -a COMMISSION ITEM SUMMARY Condensed Title: Resolution approving on second reading, following a duly noticed public hearing, Lease Agreements with the JCS, Little Havana Activities, M-D CAA, and UNIDAD for use of space at the South Shore Community Center located at 833 6m Street. Key Intended Outcome Supported: To ensure well-maintained facilities. Supporting Data (Surveys, Environmental Scan, etc.): 83% of residents surveyed felt that recent capital improvement projects were either excellent or good. Issue: Should the Ma or and the Ci Commission a rove the a reements? item summa ~~ecommendation: SECOND READING 8ti PUBLIC HEARING Currently, as well as prior to the Center's renovation, all the Tenants at the South Shore Community Center, with the exception of UNI DAD, occupied space on amonth-to-month tenancy, at the City's sole expense. City staff met with the organizations to discuss leases that would include the organizations paying the proportionate costs of CAM. The following proposed agreements all have an initial term of four years and 364 days, with one additional five year renewal term, at the City's sole discretion. As proposed and negotiated, all Tenants will pay their proportionate share of CAM costs estimated at $7.68 per square foot; Rent is $1.20 per year. 1) _J_ewish Community Services (JCS) of South Florida Inc Two leases are being proposed as follows: 1) a lease for use of 289 square feet of storage space to operate its senior meals program; and 2) a lease for use of 445 square feet of office space to operate its senior ride program. 2) Little Havana Activities and Nutrition Centers (LHANC) of Dade County Inc A lease agreement for use of 2,919 square feet of space to operate its Rainbow Intergenerational Childcare Center. 3) Miami Dade Community Action Agencv (CAA) Inc A lease agreement for use of 2,076 square feet of office space to operate the South Beach Community Enrichment Center. 4) UNIDAD of Miami Beach. Inc. Upon completion of the renovation project it was determined that some of the part-time 1S' floor space granted to UNIDAD under the First Amendment was no longer available. UNIDAD and the City are proposing to terminate the existing lease and enter into a new lease agreement that would contain the same terms and language as the other tenants utilizing the Center. The square footage and the CAM costs have been adjusted accordingly. The proposed lease agreement is for use of 3,826 square feet of office space on the 2"d floor, and an additional 329 square feet of storage space on the 1st floor. Adviso Board Recommendation: Finance and Citywide Projects Committee on June 25, 2009. Financial Information: Source of Funds: Amount Account n/a 1 n/a OBPI City Clerk's Office Legislative Tracking• ~ Robert Reboso, extension 6443 Sign-Offs: Department Director Assistan i Manager City Manager AP HMF JMG T:\AGENDA\2009\September 9\Regular\Agreements.2nd Reading.SUM.doc v L~ ~___J n ~ ~ ~ ~ /~ ~ Q ~ ~ AGENDA ITEM r1 /~ IY1 !V1 V DATE -G~ m MIAMIBEACH City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City C mission FROM: Jorge M. Gonzalez, City Manager DATE: September 9, 2009 SECOND READING PUBLIC HEARING SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON SECOND READING (AND FINAL APPROVAL), FOLLOWING A DULY NOTICED PUBLIC HEARING, LEASE AGREEMENTS BETWEEN THE CITY AND 1) JEWISH COMMUNITY SERVICES OF SOUTH FLORIDA, INC.; 2) LITTLE HAVANA ACTIVITIES AND NUTRITION CENTERS OF DADE COUNTY, INC.; 3) MIAMI DADE COUNTY COMMUNITY ACTION AGENCY, INC.; AND 4) UNIDAD OF MIAMI BEACH, INC.; ALL AGREEMENTS BEING FOR USE OF THE SOUTH SHORE COMMUNITY CENTER, LOCATED AT 833 6T" STREET, MIAMI BEACH, FLORIDA; SAID AGREEMENTS HAVING AN INITIAL TERM OF FOUR YEARS AND THREE HUNDRED SIXTY FOUR DAYS, WITH AN ADDITIONAL FIVE YEAR RENEWAL TERM, AT THE CITY'S SOLE DISCRETION; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE LEASE AGREEMENTS ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOMES SUPPORTED To ensure well-maintained facilities. ANALYSIS For over a decade, the South Shore Community Center (Center), located at 833 6th Street has been host to various not-for-profits, community service organizations that provide assistance to the Miami Beach community. During the City's recently completed $2.7 million dollar renovation of the Center, the occupants vacated the premises. The occupants have since returned to the newly renovated Center, and the City is desirous of formalizing its Landlord /Tenant relationship. Currently, as well as prior to the Center's renovation, all the occupants, with the exception of UNIDAD, occupied space on amonth- to-month tenancy, at the City's sole expense. City staff met with representatives of the various occupant groups on January 6, 2009, and again on March 24, 2009, to discuss the terms of the proposed agreements, with specific emphasis on the occupant's budgetary constraints and their ability to pay their proportionate share of Common Area Maintenance (CAM) costs. CAM costs include electrical service, water service, sewer service, stormwater costs and janitorial service to the Center (including inside the Demised Premises and Concession Area). Subsequent to the aforestated meetings, further adjustments were made to the total leasable space, resulting in an increase to the cost per square foot previously discussed and as reflected in the attached Exhibit 1. The proposed uses and terms are as follows: 1) Jewish Community Services (JCS) of South Florida. Inc. Two leases and a concession agreement were proposed. The first proposed lease agreement (Exhibit A) is for use of 289 square feet of storage space required by JCS to operate its "senior meals program". This program provides recreational activities and a mid- day meal to residents that are 60 years and older. Base Rent for the Demised Premises shall be One Dollar and Twenty Cents ($1.20) per year. Additionally, Tenant shall pay One Hundred Eighty Four Dollars and 86/100 ($184.86) per month, for its proportionate share of CAM. The second proposed lease agreement (Exhibit B) is for use of 445 square feet of office space required by JCS to operate its "senior ride program." This program provides door-to- doorbus transportation services to residents that are 60 years and older. Base Rent for the Demised Premises shall be One Dollar and Twenty Cents ($1.20) per year. Additionally, Tenant shall pay Two Hundred Eighty Four Dollars and 65/100 ($284.65) per month, for its proportionate share of CAM. There is a coterminous concession agreement for use of the 2,792 square foot Auditorium space required by JCS to conduct its recreational activities and serve its mid-day meal. The concession agreement was determined to be the appropriate mechanism by which to guarantee JCS part-time use of the Auditorium on weekdays from 8:00 AM to 2:00 PM and still allow the space to be available for use by the City and/or the general public during the afternoon, evening and weekend hours. The Miami Beach Parks and Recreation Department will be coordinating the use and/or rental of the Auditorium pursuant to its rules and regulations for rental of City-owned facilities. The Base Fee for the Concession Area is One Dollar and Twenty Cents ($1.20) per year. Additionally, the Concessionaire will pay Four Hundred Forty Six Dollars and 49/100 ($446.49) per month, for its proportionate share of CAM. This concession agreement was approved on July 15, 2009. 2) Little Havana Activities and Nutrition Centers (LHANC) of Dade County Inc One lease and one letter agreement were proposed. The proposed lease agreement (Exhibit C) is for use of 2,919 square feet of space required by LHANC to operate its "Rainbow Intergenerational Childcare Center". This program provides childcare services to approximately 60 children. Base Rent for the Demised Premises shall be One Dollar and Twenty Cents ($1.20) per year. Additionally, Tenant shall pay One Thousand Eight Hundred Sixty Seven Dollars and 18/100 ($1,867.18) per month, for its proportionate share of CAM. A concurrent letter agreement is for use of the adjacent exterior 7,002 square foot playground space required by LHANC to provide the children an outdoor recreation play area. The letter agreement was determined to be the appropriate mechanism by which to guarantee LHANC sole use of the space, thus providing the children with a safe and secure environment. The playground space is not "under-roof' and therefore, not included as part of the building's leasable square footage. The Letter Agreement was approved on July 15, 2009. 3) Miami Dade Countv Community Action AQency (CAA) Inc A lease agreement (Exhibit D) is being proposed for CAA's use of 2,076 square feet of office space needed by the CAA to operate the "South Beach Community Enrichment Center" 2 which empowers economically disadvantaged individuals, families and communities to achieve self-sufficiency through resource mobilization, service delivery, education and advocacy. Base Rent for the Demised Premises shall be One Dollar and Twenty Cents ($1.20) per year. Additionally, Tenant shall pay One Thousand Three Hundred Twenty Seven Dollars and 94/100 ($1,327.94) per month, for its proportionate share of CAM. 4) UNIDAD of Miami Beach. Inc. On November 8, 2000, the Mayor and City Commission adopted Resolution No. 2000- 24158, approving a Lease Agreement between the City and UNIDAD. UNIDAD provides counseling, education, and employment training services to the City's community. Subsequently, on May 18, 2005, the City Commission adopted Resolution No.2005-25881, approving a First Amendment to the UNIDAD Lease by redesignating UNIDAD's Leased Premises to include addition full-time space on the 2"d floor and additional part-time use of space located on the 1 Sc floor of the Center. Furthermore, on July 24, 2002, the City Manager approved an abatement of UNIDAD's CAM payments until such time as all othertenants had executed their respective agreements and commenced paying their corresponding CAM costs. Upon completion of the aforementioned renovation project, it was determined that some of the part-time 1 St floor space granted to UNIDAD under the First Amendment was no longer available and therefore the Lease should be amended to reflect the change in the square footage of the leased premises, and the CAM costs adjusted accordingly. Rather than further amend the Lease, UNIDAD and the City are proposing to terminate the existing Lease and enter into a new lease agreement that would contain the same terms and language as the other tenants utilizing the Center. The new proposed lease agreement (Exhibit E) is for the UNIDAD's use of 3,826 square feet of office space on the 2"d floor and an additional 329 square feet of storage space on the 15t floor. Base Rent for the Demised Premises shall be One Dollar and Twenty Cents ($1.20) per year. Additionally, the Tenant will pay Two Thousand Six Hundred Fifty Seven Dollars and 81 /100 ($2,657.81) per month, for its proportionate share of CAM. All the above noted Agreements have an initial term of four (4) years and three hundred sixty four (364) days with one additional five (5) year renewal term, at the City sole discretion. On April 22, 2009, the Mayor and City Commission referred the discussion of the proposed Agreements governing use of space in the South Shore Community Center to the Finance and Citywide Projects Committee (F&CPC). At their June 25, 2009 meeting, the F&CPC discussed the proposed Agreements and unanimously recommended their approval as negotiated between the City and the Tenants. CONCLUSION Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, provides that the lease of any City-owned property, including option periods, requires the following: 1) a public bidding process; 2) Planning Department analysis; 3) an independent appraisal to determine the value of the leasehold interest; 4) two (2) readings of the proposed lease; and 5) a public hearing to obtain citizen input. Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements, 3 by 5/7tns vote of the Mayor and City Commission, upon a finding by the Mayor and City Commission that the public interest would be served by waiving such conditions. A Planning Department analysis finds that the use of these spaces is consistent with the land use designation contained in the Comprehensive Plan. FIRST READING On July 15, 2009, pursuant to Resolution No. 2009-27132, the Mayor and City Commission approved on first reading, Lease Agreements between the City and Jewish Community Services of South Florida, Inc.; Little Havana Activities and Nutrition Centers of Dade County, Inc.; Miami Dade County Community Action Agency, Inc.; and UNIDAD of Miami Beach, Inc. Additionally, the Mayor and Commission approved a Concession Agreement with Jewish Community Services of South Florida, Inc. and a Letter Agreement with Little Havana Activities and Nutrition Centers of Dade County, Inc., waived by 5/7tn vote, the competitive bidding and appraisal requirements; and set the public hearing for September 9, 2009, for second reading and final approval of the Lease Agreements. Additionally, the Mayor and City Commission approved various non-substantive changes to the Agreements as follows: 1) Agreements would renew if the Tenant was in good standing, and the renewal would be subject to the re-negotiation of Rent and CAM costs; and 2) The Cure period for monetary defaults would be increased from five (5) days to thirty (30) days. Furthermore, the Mayor and City Commission requested that Tenants not be required to pay CAM costs until such time as all the Tenants commenced paying. All Tenants, with the exception of the CAA, have executed their respective agreements. We have confirmed with the CAA that they are proceeding with the necessary reviews and approvals from the Miami-Dade Board of County Commissioners. Additionally, we have advised the CAA that, should that approval be delayed, the payment of CAM costs will be retroactive to October 1, 2009. All other Leases have been executed and, according to lease terms, would commence paying their proportionate share of CAM costs in October 2009. Further direction from the Commission is required. CONCLUSION Based on the valuable community services provided by the aforementioned Tenants, the Administration recommends that the Mayor and City Commission approve on second reading, following a duly noticed public hearing, Lease Agreements between the City and 1) Jewish Community Services of South Florida, Inc.; 2) Little Havana Activities and Nutrition Centers of Dade County, Inc.; 3) Miami Dade County Community Action Agency, Inc.; and 4) UNIDAD of Miami Beach, Inc.; all Agreements being for use of the South Shore Community Center, located at 833 6tn Street, Miami Beach, Florida; said Agreements having an initial term of four years and three hundred sixty four days, with an additional five year renewal term, at the City's sole discretion; and authorize the Mayor and City Clerk to execute the Lease Agreements. JMG\HFWP\RLR\rlr T:WGENDA\2009\September 9\Regular\Agreements.2nd Reading.MEM.doc 4 EXHIBIT 1 st mat nnu l eradn arises De artment Incumn Operatin Ex arise Adrvd Comments Annual Cost Totals Parks.& Recreation Elscttidty See note Gelow $53.885.72 Parks & Recreation Water See note below $2.430.69 Parks S Raaeation Sewer See note below $2,322.69 Parks& Recreation Stormwater See note below $2,411:64 $61,050.74 Pr arty Management Janitorial Svcs Contrad(R&D) • See note below 'bSb.250 { r I Estlmued Annual Opendnp Expsnass _~fQ7,300.74 annual Cost Psr S uare Foot :PSF ~: $T:.67~981.. Notes: Basedon actual amounts paid from 1 0/07 - 09108 + 5%increase ' Cost updated to indude 2nd floor. Pisviously, janitorial services consistedof maintenance of common areas and 1st Moor offrce dearung',(e.g. trashremouat, vacuuming, mopping). Only. first floor was contracted for maintenance / deanin since . 2nd floor was under rehabilitafion. One Diemorld. staffs assigned to Center. g, 9uildin S ce Distribution 1st FL S . FL 2nd FL Sq. Ft. Totals Sq Ft.) TENANTS Leasable Space 8.850 3,826 72,E76 Common Area 3,388 635 4,023 subtotal 12 238 4,461 16 699 LI I Y Mechanical 810 355 1,165 subtotal 810 355 1.165 N.~?,, Total Builtlin S uare Foo[a e t 3,048 - 4,816 17.864 enants ro-rata are eas a ace Tenant Leased Space Pro-rata Share of (S . Ft.) Leasable Space Cit of Miami Beach - Auditorium .2.09#. 17% JCS-Senior Meals-Storege 289 2% JCS-Senior Meals-Auditorium 69!§ B% JCS ~ Senior Meals -- Total 987 JCS-Senior Ride 445 4% LdtleHavana Actlvites & Nutrition Center 2.919 23% Miami-0ade Communit Action en 2.076 16% UNIDAD -Offices - 2nd FL 3,826 UN IDAD - Sorage - 1st FL 329 UNIDAI3-Total 4,155 33% TOT-ALB i2,'~ 100% Auddorium -Total 100% Sr. Meals (ham- m} . ~ ,898 25% Clt. m-.8am 2.094 75% ro a os o l er n arises Tenants $97.300.74 PSF Cost ,tS75981 City of Miami Beach Monthly $1,339.46 Yeady $16,073.50 JCS-Senior Meals-Storege Monthl $184.66 Yealy $2,218.36 JCS-Senior Meals-Auditorium Monthl $446.49 Yeah $5,357,83 JCS-Senior Ride Monthly $284.65 Mealy $3415.81 L'Rtle Havana Activities & Nutrition Center Monthl $1,867. tg Yearly $22,40619 Miami-0ade Community Action Agency Monthly $1,327.94 Yearly .$15,935.34 UNIDAD Monthly $2,657.81 Yearly $31,893.70 EXHIBIT A 18MB :THURSDAY, AUGUST 20, 2009 ~ __ ~IAMIBEA~H C;TY OF MIAMI BEACH NOTICE OF PUBLIC HEARING NOTICE lS HEREBY given that a second reading and public hearing will be held by the City Commission of the City of Miami Beach, in the Commission Chambers; ' 3"' floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, on Wednesday, September 9, 2009 at 10:30 A.M., Approving Lease Agreements Between The City And 1) Jewish Community Services Of South Florida. Inc.; 2) Little Havana Activities And Nutrition Genters Of Dade County. Inc.; 3) Miami Dade County Gommunity Action Agency, Inc.; And 4) UNIDAD Of Miami Beach, Inc.; Additionally Approving A Concession Agreement With Jewish Community Services Of South Florida, Inc. And A Letter Agreement With Little Havana Activities And Nutrition Centers Of Dade County, Inc.; All Agreemerris Being For- Use Of The South Shore Community Center, Located At 833 6`" Street, Miami Beach;'Florida; Said Agreements Having An Initial Term . Of Four Years And Three Hundred Sixty Four Days, With An Additional Five Year Renewal Term, At The City's Sole Discretion. Inquiries may be directed to the Office of Real Estate, Housing and Community Development at (305) 673-7260. INTERESTED PARTIES are invited to appear at this meeting, or be represented.-by ~n agent, or to express their views in writirrg addressed3o~he Crty`Cammission, c/o the Clty Clerk,1700 Convention Center Drivel ~` Floor, City Hall, Miami Beach, Florida-33139. This meeting may be continued and under such circumstances additional legal notice wdutti not t7e-provided. Robert E. Percher, City Clerk Gity of Miami Beach Pursuant to Section 286.0105, Fla. Stet., the City hereby advises the public that `ff a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing. such person must ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise ' inadmissible or irrelevant.evidence, nor does it authorize challenges or appeals not otherwise allowed by law. To request this material in accessible format, sign language interpreters, information on access for persons with disabilities, and/or any accommodation to review any document or participate in any city-sponsored proceeding, please contact (305j 604-2489 (voice), (305) 6Y3-7218 (TTY) five days in advance to initiate your request. TTY users may also call 711 (Florida`Fietay Service): ~.~ ~~~~ I