2002-24966 Reso IncompleteRESOLUTION NO.
2002-24966
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, ACKNOWLEDGING TENANT'S EXERCISE OF
THE SECOND RENEWAL OPTION IN THE LEASE
AGREEMENT, DATED SEPTEMBER 18, 1995, BETWEEN
THE CITY AND SOUTH BEACH MEDICAL GROUP, P.A.,
SAID SECOND RENEWAL TERM COMMENCING ON
OCTOBER 1, 2002, AND ENDING ON SEPTEMBER 30,
2005; FURTHER APPROVING A THIRD AMENDMENT TO
THE LEASE AGREEMENT FOR THE LEASE OF SUITE
402 AND 403, OF THE CITY-OWNED PROPERTY
LOCATED AT 1701 MERIDIAN AVENUE (A/K/A 777-17TM
STREET), MIAMI BEACH, FLORIDA, BY ADDING SUITE
401 TO THE LEASED PREMISES, RESULTING IN AN
INCREASE OF 1,440 SQUARE FEET OF LEASED
SPACE; WITH ALL OTHER TERMS AND CONDITIONS
OF THE LEASE AGREEMENT REMAINING IN FULL
FORCE AND EFFECT
WHEREAS, on September 18, 1995, Cadigan Medical Group, Inc. entered into a Lease
Agreement with Gazit Meridian, Inc. for the use of Suite 403 (approximately 1250
square feet) at 1701 Meridian Avenue (a/k/a 777-17th Street), Miami Beach, Florida
(Property); and
WHEREAS, on June 24, 1996, said Lease Agreement was amended to include the
addition of Suite 402 (approximately 820 square feet); and
WHEREAS, on July 16, 1996, a Second Amendment to said Lease Agreement was
executed extending the original expiration date by twelve (12) months; and
WHEREAS, on March 24, 1998, with the concurrence of Gazit Meridian, Inc. the Lease
Agreement was assigned by Cadigan Medical Group, Inc. to South Beach Medical
Group, P.A. (SBMG); and
WHEREAS, on June 1; 1999, a three (3) year extension to said Lease Agreement was
executed, effectively exercising one of the two 3 year options provided to SBMG in the
Lease Agreement; and
WHEREAS, on January 31, 2002, the Mayor and City Commission adopted Resolution
No. 2002-24734, approving a the purchase of the Property from Gazit Meridian, Inc.;
and
WHEREAS, Hospice Foundation of America, the tenant which occupied Suite 401
(approximately 1,440 square feet) at the Property, and whose Lease term expired on
July 31, 2002, vacated same upon expiration of said term; and
WHEREAS, SBMG's term is scheduled to expire on September 30, 2002; and
WHEREAS, SBMG has requested to exercise its second renewal option, said term
commencing on October 1,2002, and ending on September 30, 2005; and
WHEREAS, SBMG is also in need of additional office space and has approached the
City requesting to lease Suite 401; and
WHEREAS, the Administration has determined that SBMG's use of Suite 401 does not
adversely affect any plans the City has for the Property and is in keeping with the policy
that is in place for same; and
WHEREAS, the City Administration and SBMG have agreed to enter into a Third
Amendment to the Lease Agreement, in accordance with the conditions outlined below.
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 herein acknowledge Tenant's exercise of the second renewal option in the
Lease Agreement, dated September 18, 1995, between the City and South Beach
Medical Group, P.A., said second renewal term commencing on October 1, 2002, and
ending on September 30, 2005; further approving a Third Amendment to the Lease
Agreement for the lease of Suite 402 and 403, of the City-owned property located at
1701 Meridian Avenue (a/Ida 777-17th Street), Miami Beach, Florida, by adding Suite
401 to the Leased Premises, resulting in an increase of 1,440 square feet of leased
space; with all other terms and conditions of the Lease Agreement remaining in full
force and effect.
PASSED and ADOPTED this ]]th
ATTEST:
CITY CLERK
day of September, 2002.
JMG:CMC:JD:rlr
F:\DDHP~$ALL~ASSET~777-17th Street~SB Medical~SoBeMedicalReso.doc
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution acknowledging a second renewal option that is being exercised in accordance with the Lease
Agreement, dated September 18, 1995, for a portion of the City-owned property located at 1701 Meridian
Avenue (1701 Property) between the City of Miami Beach and South Beach Medical Group, P.A., with a
term commencing on October 1, 2002, and ending on September 30, 2005; further approving a Third
Amendment to the Lease Agreement by adding Suite 401 to the leased premises, resulting in an increase
of 1,440 square feet of leased space.
Issue:
Should the City acknowledge the exercising of the second renewal option and approve the amendment
increasing the amount of office space as South Beach Medical Group has requested?
Item Summar~lRecommendation:
If approved as amended, the Lease represents an increase in revenues to the City in the amount of
approximately $4,250 annually. South Beach Medical Group's occupancy does not adversely affect any
plans the City has for the 1701 Property and is in keeping with the policy that is in place for said Property.
The City Attorney's Office has also advised that the requirements of City Code Article II, Sections 82-36
through 82-39 (a/k/a/Shapiro Ordinance), do not apply to lease amendments.
The Administration recommends approval of the Resolution.
Advisory Board Recommendation:
J N/A
Financial Information:
Funds:
Finance Dept.
City Clerk's Office Legislative Tracking:
IJose Damien, Asset Manager
Sign-Offs:
Departmeht Directo~ Assistaht Ci~Manager
TAAGENDA~2002\SEP1102\CONSEN~SoBeMedicalSUMM.doc 08/30/02
AGENDA ITEM
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
TO:'
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: September 11, 2002
Members of the City Commission
Jorge M. Gonzalez t ~
City Manager
A RESOLUTION FTHE MAYOR AND CITY COMMISSION OFTHE CITY
OF MIAMI BEACH, FLORIDA, ACKNOWLEDGING THE EXERCISE OF A
SECOND RENEWAL OPTION IN THE LEASE AGREEMENT, DATED
SEPTEMBER 18, 1995, BETWEEN THE CITY OF MIAMI BEACH AND
SOUTH BEACH MEDICAL GROUP, P.A., SAID SECOND RENEWAL
TERM COMMENCING ON OCTOBER 1, 2002, AND ENDING ON
SEPTEMBER 30, 2005; FURTHER APPROVING A THIRD AMENDMENT
TO THE LEASE AGREEMENT FOR THE LEASE OF SUITE 402 AND 403,
OF THE CITY-OWNED PROPERTY LOCATED AT 1701 MERIDIAN
AVENUE (A/WA 777-17TM STREET), MIAMI BEACH, FLORIDA, BY
ADDING SUITE 401 TO THE LEASED PREMISES, RESULTING IN AN
INCREASE OF 1,440 SQUARE FEET OF LEASED SPACE; AND ALL
OTHER TERMS AND CONDITIONS OF THE LEASE AGREEMENT
REMAINING IN FULL FORCE AND EFFECT
On September 18, 1995, Cadigan Medical Group, Inc. entered into a Lease Agreement
with Gazit Meridian, Inc. for the use of Suite 403 (approximately 1250 square feet) at 1701
Meridian Avenue (a/k/a 777-17th Street), Miami Beach, Florida (1701 Property). Said
Lease Agreement was amended on June 24, 1996, to include the addition of Suite 402
(approximately 840 square feet). A Second Amendment to said Lease Agreement was
executed on July 16, 1996, extending the original expiration by date twelve (12) months.
On March 24, 1998, with the concurrence of Gazit Meridian, Inc., the Lease Agreement
was assigned by C. adigan Medical Group, Inc. to South Beach Medical Group, P.A.
(SBMG). The following year, on June 1, 1999, a three (3) year extension to said Lease
Agreement was executed, effectively exercising one of the two 3 year options provided to
SBMG in the Lease Agreement.
On January 31, 2002, the Mayor and City Commission adopted Resolution No. 2002-
24734, approving the purchase of the 1701 Property from Gazit Meridian, Inc.
Hospice Foundation of America, the tenant which occupied Suite 401 (approximately 1,440
square feet) at the 1701 Property, and whose Lease term expired on July 31,2002, opted
not to not exercise their remaining three (3) year renewal option and vacated same upon
expiration of said term.
SBMG's term is scheduled to expire on September 30, 2002 and SBMG has requested to
exercise its second renewal option, said term commencing on October 1,2002, and ending
on September 30, 2005. SBMG is also in need of additional office space and has
approached the City requesting to lease Suite 401 since Hospice opted not to exercise
their option to renew its lease of same. The Administration has determined that SBMG's
use of Suite 401 is consistent with the projected tenancy presented to the City Commission
on January 31,2002, at which time the purchase of the 1701 Property was approved. The
subject space (Suite 401) was reflected to remain in private use through 2005.
Furthermore, this lease will be at a higher square foot rate than that which Hospice's
renewal would have provided for, thereby yielding increased annual revenue to the City of
approximately $4,250.
Tenant Sq.R. Base Rent Rate* Yearly Rent
SBMG at Suite 401 1440 $12.63 $18,187.20
HOSPICE at Suite 401 1440 $9.68 $13,939.2(~
Increased Revenue to City $4,248.0(~
* SMBG's current rate of $12.50 as increased by assumed CPI of 1.05%
HOSPICE's previous rate of $9.58 as increased by CPI of 1.05%
The City Administration has determined that SBMG's occupancy does not adversely affect
any plans the City has for the 1701 Property and is in keeping with the policy that is in
place for said Property. The City Attorney's Office has also advised that the requirements
of City Code Article II, Sections 82-36 through 82-39 (a/k/a/Shapiro Ordinance), do not
apply to lease amendments.
The Lease Agreement does not provide for any parking spaces to SBMG in municipal
parking lot 5M (1721 Meridian Avenue) directly north of the 1701 Property, nor at any other
municipal parking facility. As such, there would be no lease related parking issues in the
event of any future, construction which impacts said parking lot.
The City Administration and SBMG have agreed to enter into a Third Amendment to the
Lease Agreement, by amending the Lease Agreement in accordance with the conditions
outlined below:
SBMG would exercise their remaining option and the Lease term would be renewed
and extended for a period of three (3) years commencing on October 1,2002, and
ending on September 30, 2005.
The Leased Premises have been expanded and will include the addition of:
o Suite 401 (approximately 1,440 square feet); and the continued lease of
o Suite 402 (approximately 840 square feet); and
o Suite 403 (approximately 1,250 square feet)
for a revised total of 3,530 square feet of leased space with an estimated initial
square foot rate of $12.63 for an approximate yearly base rent of $44,584.
Base Rental Rate (currently $12.50 per square foot) will be increased based on the
Consumer Price Index (CPI) effective upon the new Commencement Date of
October 1,2002. Other sums due and payable by SBMG to the City include but are
not limited to Operating Costs, Common Area Maintenance (CAM), Ad Valorem
Taxes, Insurance, and all applicable sales and use taxes.
Unless specifically provided in the attached Third Amendment to the Lease
Agreement, all other terms and conditions of the original Lease Agreement, as
previously amended, assigned and extended, shall remain in full force an effect.
The Administration recommends that the Mayor and City Commission herein approve a
second renewal option in the Lease Agreement, dated September 18, 1995, between the
City of Miami Beach and South Beach Medical Group, P.A., said second renewal term
commencing on October 1,2002, and ending on September 30, 2005; further approving a
Third Amendment to the Lease Agreement for the lease of Suite 402 and 403, of the City-
owned property located at 1701 Meridian Avenue (a/k/a 777-17th Street), Miami 'Beach,
Florida, by adding Suite 401 to the Leased Premises, resulting in an increase of 1,440
square feet of leased space; and all other terms and conditions of the Lease Agreement
remaining in full force and effect.
JMG:G-~SOD:dr
T:~,GENDA~002\SEP1102\CONSEN'~SoBeMedicalCCMEMO.doc 08/30/02
THIRD AMENDMENT TO LEASE AGREEMENT
This Third Amendment to the Lease Agreement, dated September 18, 1995, for Suite 402
and Suite 403 (Premises), located at 1701 Meridian Avenue (a/ida 777-17th Street), Miami
Beach, Florida (Property), between the City of Miami Beach (City), a ~lorida Municipal
Corporation, having its principal office at 1700 Convention Center Drive, Miami Beach,
Florida, (hereinafter referred to as the "Landlord"), and South Beach Medical Group, P.A.
(SBMG) as having its principal office at 1701 Meridian Avenue, Suite 402, Miami Beach,
Florida, (hereinafter referred to as the "Tenant"), is entered into this 1st day of October,
2002.
WITNESSETH
WHEREAS, on September 18, 1995, Cadigan Medical Group, Inc. entered into a Lease
Agreement with Gazit Meridian, Inc. for the use of Suite 403 (approximately 1250 square
feet) at 1701 Meridian Avenue (a/Ida 777-17th Street), Miami Beach, Florida; and
WHEREAS, on June 24, 1996, said Lease Agreement was amended to include the
addition of Suite 402 (approximately 820 square feet); and
WHEREAS, on July 16, 1996, a Second Amendment to said Lease Agreement was
executed extending the original expiration date by twelve (12) months; and
WHEREAS, on March 24, 1998, with the concurrence of Gazit Meridian, Inc. the Lease
Agreement was assigned by Cadigan Medical Group, Inc. to SBMG; and
WHEREAS, on June 1, 1999, a three (3) year extension to said Lease Agreement was
executed, effectively exercising one of the two 3 year options provided to SBMG in the
Lease Agreement; and
WHEREAS, on January 31, 2002, the Mayor and City Commission adopted Resolution
No. 2002-24734, approving the purchase of the Property from Gazit Meridian, Inc.; and
WHEREAS, Hospice Foundation of America, the tenant which occupied Suite 401
(approximately 1,440 square feet) at the Property, and whose Lease term expired on July
31,2002, vacated same upon expiration of said term; and
WHEREAS, SBMG's term is scheduled to expire on September 30, 2002; and
WHEREAS, SBMG has requested to exercise its second renewal option, said term
commencing on October 1,2002, and ending on September 30, 2005; and
WHEREAS, SBMG is also in need of additional office space and has approached the City
requesting to lease Suite 401; and
WHEREAS, the Administration has determined that SBMG's use of Suite 401 does not
adversely affect any plans the City has for the Property and is in keeping with the policy
that is in place for same; and
Page 1
WHEREAS, the City Administration and SBMG have agreed to enter into a Third
Amendment to the Lease Agreement, in accordance with the conditions outlined below.
NOW, THEREFORE, the Lease Agreement is hereby amended as follows:
The Lease Agreement is hereby renewed and extended for a further term of three
(3) years commencing on October 1,2002, and ending on September 30, 2005.
All references to the Premises in the Lease Agreement, as amended, extended and
assigned, are deleted in their entirety and replaced with the following language:
Premises shall include Suite 401 (approximately 1,440 square feet)
and Suite 403 (approximately 1,250 square feet) for a revised total of
2,690 square feet of leased space (Premises) all within the Property
located at 1701 Meridian Avenue (a/k/a 777 - 17th Street) Miami
Beach, Florida 33139.
Rental Rates and any other sums due and payable to the Landlord by the Tenant,
that are based on the leased square footage, including but not limited to Operating
Costs, Common Area Maintenance (CAM), Ad Valorem Taxes, Insurance, and all
applicable sales and use tax shall be calculated and applied in accordance with the
revised square footage for the Premises provided herein above.
Unless specifically amended herein, all other terms and conditions of the Lease
Agreement, including any amendment(s), assignment(s) and extension(s) thereto,
between the Landlord and Tenant shall remain in full force an effect. In the event
there is a conflict between the provisions provided herein and the Lease Agreement,
as amended, extended and assigned, the provisions of this Third Amendment shall
govern.
IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to the
Lease Agreement, as amended, extended and assigned, be executed by their duly
authorized officials on the day first above indicated.
Al-rEST:
CiTY CLERK
B EACH, FLORIDA
rick Cadigan
WITNESS APPROVED AS TO / / Dr. Patrick Cadigan
FORM & LANGUAGE /
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