99-23023 RESO
RESOLUTION NO.
99-23023
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
UNIVERSITY OF FLORIDA COLLEGE OF ARCHITECTURE'S
CONTINUED USE OF THE 3RD FLOOR OFFICE SPACE AT
HISTORIC CITY HALL, LOCATED AT 1130 WASHINGTON
AVENUE, MIAMI BEACH, FLORIDA; SAID CONTINUED USE ON A
MONTH-TO-MONTH BASIS, TERMINABLE UPON NOTICE BY THE
CITY, BUT OTHERWISE CONTINUING PURSUANT TO THE
TERMS AND CONDITIONS OF THE PREVIOUSLY EXISTING
LEASE AGREEMENT, DATED JULY 14, 1993, BETWEEN THE CITY
AND THE UNIVERSITY OF FLORIDA; AND FURTHER
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AN IN-KIND
SERVICES AGREEMENT WITH THE UNIVERSITY OF FLORIDA
WHEREAS, the City and University of Florida, on behalf of its College of Architecture,
previously entered into a Lease Agreement, dated July 14, 1993, for the 3rd floor office space at
Historic City Hall, located at 1130 Washington Avenue, Miami Beach, Florida; and
WHEREAS, the Lease term expired on July 30, 1997, and the University of Florida failed
to timely exercise its option to extend said Lease, and the City properly notified the University that
the Lease had been so terminated; and
WHEREAS, the University of Florida has approached the City seeking to continue using
the premises, and the Administration deems that it would be in the best interest of the City to permit
the University of Florida to remain as a tenant-at-will; and
WHEREAS, said tenancy shall be on a month-to-month basis, terminable upon notice by
the City, until such time as the University of Florida submits a detailed proposal of the in-kind
services it proposes to provide the City with, in exchange for the continued use of the premises; said
proposal to be submitted no later than March 1, 1999, at which time a more permanent arrangement
will be negotiated and presented to the Mayor and City Commission; and
WHEREAS, the University of Florida's tenancy, except as modified by this Resolution, shall
otherwise be subject to the same terms and conditions of the previously existing Lease Agreement,
dated July 14, 1993; and
WHEREAS, on December 22, 1998, the Finance/Citywide Projects Committee concurred
with the Administration's aforestated recommendations.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the University of Florida
College of Architecture's continued use of the 3rd floor office space at Historic City Hall, located
at 1130 Washington Avenue, Miami Beach, Florida, be approved, on a month-to-month basis, and
be terminable upon notice by the City, but otherwise continuing pursuant to the terms and conditions
of the previously existing Lease Agreement, dated July 14, 1993, between the City and the
University of Florida; and that the City Manager be authorized to negotiate an in-kind services
agreement with the University of Florida.
PASSED AND ADOPTED this 6 day of January, 1999.
ATTEST:
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CITY CLERK
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MAYOR
T:\AGENDA\1999\JAN0699\REGULAR\UNIVFLOR.RES 12/30/98
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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:ITY OF MIAMI BEACH
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;ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
Itlp:\\Ci. miami-beach. fl. us
COMi\'llSSION MEMORANDUM NO.
TO:
Mayor Neisen Kasdin and
Members of the City Commission
DATE: November 18. 1998
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
STATUS REPORT ON CITY-O\VNED PROPERTIES \VHICH ARE
LEASED TO OTHER ENTITIES (CITY AS LESSOR) AND PRIVATELY
O\VNED PROPERTIES \VHICH ARE LEASED BY THE CITY (CITY AS
LESSEE)
BACKGROUND:
In an effort to reduce the amount of capital being expended to lease property from the private sector
to house City personnel, and maximize and more efficiently use the existing City-owned inventory
for public purposes, on September 23, 1998, the Mayor and City Commission requested that the
Administration provide a comprehensive report on this matter.
Notwithstanding public rights-of-way, which include but are not limited to sidewalks, swale areas,
streets and street ends, the City currently owns approximately 300 properties. The majority of which
fall into the following categories: 1) parks/recreation facilities (including golf courses), 2) parking
lots, 3) public works facilities, 4) police and fire stations, 5) convention center sites, and
7) miscellaneous parcels (i.e. Colony Theater, vacant lots, etc).
There are currently four principal methods which the City uses to administer non-City use of city-
owned property: 1) Lease Agreements, 2) Concession Agreements, 3) Management Agreements, and
4) Revocable Permits. This report, and the respective supporting documents attached hereto, only
addresses Lease Agreements on City-owned property and Lease Agreements wherein the City is
Lessee.
ANAL YSIS
The City leases privately owned properties to house the Parking Department's administrative offices,
two locations for Police Department operations (North Beach and Bay Road), as well as fully
subsidizing the cost for the office space used by the Police and Fire Pension System, and providing
office space for the General Employees and Unclassified Employees/Elected Officials Retirement
System. The combined total office space the City leases is approximately 17,500 square feet of at
a cost of 5244,911 per year. An additional 21,500 square feet of land was leased for a lot (for
Electrowave parking) at a cost of $161,250 yearly. This lease has been terminated.
con tin ued....
AGENDA ITEM
DATE
Leased Property
Page 2
November 18, 1998
The following chart describes the leased locations and user Departments, and provides recommended
relocation alternatives. The chart reflects the City's annual rental obligations totals $406,220. The
proposed relocation alternatives represent an annual savings of $323, 190 to the City.
USER DEPARTMENT CURRENT LEASE SQ. FT. x RATE ANNUAL ACTION RECOMMENDED
LOCA TlON EXPIRES RENT Relocate to:
Parking Administration 777.1 7th Street 6130100 7000 x $14.76 5103,296 Historic City Hall (4th or 8th Fl.)
Parking Operations as above as above as above as above Historic City Hall (1st FI.No.)
Police & Fire Pension 605 Lincoln Rd. at will" 2500 x 523.43 S58,575 I) 701 5th St.
2) 555.!7th Street. or
3) Historic City Hall (4th or 8th
Fl.)
Police Operations 1833 Bay Rd. l/31/01 6000 x 512.00' 572.000 Remain as is
Police Operations (DVU) 6988 Indian M-to-M 2000 x $5.52 $11,040 Remain as is
Creek
Electrowave Parking 1100 - 5th Street 12/14/98 21500 x $7.50 $161.250 Terminate upon expiration
TOTAL ANNUAL RENT: $406,230
" lease may be terminated if the City provides for suitable accommodations within a City-owned facility.
NOTE: Information obtained by the Community and Economic Development Department through an informal survey of oftice space in the
South Beach area suggested that the rate for median office space in the area ranged from $13.00 to $22.00 per square foot.
The following Departments are currently located in City-owned facilities. However, the space which
they occupy has been deemed inadequate and relocation alternatives have been recommended. In
the case of Fire, relocation of Fire Administration and Prevention represents a $2 million cost
avoidance to the City which is the estimated cost of new facilities at Fire Station #2 that would
otherwise be necessitated.
DEPARTMENT LOCA TlON SQ. FT. ACTION RECOMMENDED
NAME Relocate to:
Fire Administration 2300 Pinetree (FS#2) 1300 Historic City Hall (7th Fl.)
Fire Prevention 2300 Pinetree (FS#2) 1652 Historic City Hall (1st FI.So.)
E mp/E I ec t. 0 ftic i a I s Pen s ion City Hall (3rd 1'1) 460 City Hall (Isr Fl.) -
Arts/Cu I ture/En tertain men t City Hall (4th 1'1) 1300 Historic City Hall (4th or 8th Fl.)
or
555-17th Street
Over the past five years, the City of Miami Beach has made available space in publicly owned
facilities at a nominal cost to not-for-profit organizations. Private, for profit, entities lease city-
owned space at market rates. There are existing leases to private entities at what is deemed below
market rates. Leases for office space with private, for profit, entities are primarily concentrated in
Historic City Hall.
continued....
Leased Property
Page 3
November 18, 1998
Currently, the City as Lessor, leases approximately 169,026 square feet of interior improved space
at eighteen (18) separate City-owned facilities, and generates approximately $317,221 per year (this
includes space which is provided to Miami-Dade County for three public libraries, and to
approximately 16 not-for-profit organizations). Additionally, the City as Lessor, leases
approximately 127,892 square feet ofland and air-rights at six (6) City-owned properties, which
generate approximately $71,859 yearly.
Some of the leased sites are provided for one dollar ($1.00) per year, or for a very nominal fee, and
include organizations such as the Performing Arts Network (PAL'!), the Florida Dance
Association (FDA), the Jewish Community Center (ICe), the University of Florida, Holocaust
Memorial and previously included the Florida Entertainment Commission and the Dade Marine
Institute. Additionally, Miami-Dade County's Community Action Agency, which operates several
programs in Miami Beach, also occupies space in one of the City's facilities. Attached is a
comprehensive list detailing each of the leased sites and its respective tenant.
The Administration has modified the model that is used for our lease agreements to require
organizations to pay their pro-rata share of operating expenses. All lease agreements which have
been entered into since November of 1996, provide that the lessees, in addition to the rent payment,
pay any sales, use or excise tax(es), their proportionate share of operating expenses and utility
charges including, but not limited to ad valorem taxes, electricity, water, gas, telephone, garbage
disposal and maintenance costs. Additionally, since November of 1996, all leases to not-for-profit
organizations, which have been afforded nominal rates, have been designed to sunset no later than
May of 1999.
The Office of Asset Management recently requested and compiled information from all City
Departments related to their current and future space use requirements. This information will be
used to determine the most effective use of our property inventory while addressing each
Department's needs. The Administration's long term goal is to maximize the revenue generated from
City-owned lands and facilities, and to eliminate or minimize the amount of property which the City
leases from others. The following list of priorities will be addressed towards this end:
update and re-establish a comprehensive portfolio of all City-owned property to
better manage these assets
· identify all unused and under-utilized property owned or controlled by the City
· assess each Department's current and future staff space needs in order to determine
the feasibility of relocating all, or part of each operation, into the unused or under-
utilized space
assess each Department's current and future programming needs in order to
determine the feasibility of using the unused or under-utilized space for those
purposes
con tin ued....
Leased Property
Page 4
November 18,1998
· determine the market rates for any unused or under-utilized space that is not used by
the City
· establish a policy and process to effectively market any unused space
RECOMMENDATION
Based on the City's existing space needs and the directive to effectively utilize existing resources,
it is recommended that the Mayor and City Commission endorse the proposed recommended
relocation alternatives which encompass the following:
(I) Action requested: Endorsement of the following relocation recommendations
USER DEPARTMENT S.F. OCCUPIED RELOCATION SITE RENT SAVINGS TIME
FRAME
Fire Department Administration 1585 Historic City Hall (7th Fl) $0 ASAP
""
Fire Prevention Bureau 2449 Historic City Hall (I st Fl) $0 ASAP
Employees and Elected Officials Pension 1500 City Hall (1st FI) $0 ASAP
Police and Fire Pension 2500 701 5th St. $58,575 ASAP
Arts/Culture/Entertainment Office 1500 I) 555 - 17th Street . . . . " . .. . $0 ASAP
2) Historic City Hall (4th or 8th $0 June of 2000
FI) ".....................
Parking Administration 1585 Historic City Hall (4th or 8th Fl) $103,296 June of 2000
Parking Operations 2300 Historic City Hall (7th Fl) As Above June of 2000
Electrowave Parking Cancel $161,250 Dec. 14, 1998
TOTAL $323,121
(II) Action Requested:
Policy direction on"the future use of the City-owned property located at 555-17th Street, which
currently houses the following:
USER DEPART:VIENT SQUARE FEET OCCUPIED ANNUAL RENT LEASE TER.."vl EXPIRES
Concert Association of Florida 4375 S.F. $1485/yr. Month - to-Month
Performing Arts Network (PAN) 3424 S.F. $1 March 1999
Florida Dance Association 1023 S.F. $1 May 1999
Miami Beach Employees Federal Credit 1635 S.F. $0 No Lease
Union
continued....
Leased Property
Page 5
November 18, 1998
(III) Action Requested: Approval of the following recommendations with regard to pending
litigation/eviction of certain tenants located at Historic City Hall:
· Frankel and Associates' lease on the 7th and 8th Floor expired and they failed to
exercise their 2nd renewal option. Frankel filed an action for declaratory relief
against the City. A settlement proposal was reached that requires that Frankel
relinquish and vacate the 7th Floor and retain use of the 8th floor space until June of
2000
Recommendation: Approve the proposed settlement
· Affordable Landmark's lease on the 4th Floor expired. A proposed settlement
provides that Affordable retain use of the 4th floor space until June of2000
Recommendation: Approve and offer terms consistent with Frankel's proposed.
settlement
· University of Florida's School of Architecture lease ofthe 3rd, Floor expired. No
eviction or renegotiation of the lease has been pursued.
Recommendation: Remain as month-to-month tenants
SR:CC:JD:rd
Attachment
T:\AGENDA\1999VAN0699\REGULAR\PROPRPT.CC 11/10/98
:ITY OF MIAMI BEACH
;ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
IIp:\\ci.m iami-beach. fl.us
COMMISSION MEMORANDUM NO.
~-<19
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: January 6, 1999
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOLUTION AP OVING THE UNIVERSITY OF FLORIDA
COLLEGE OF ARCHITECTURE'S CONTINUED USE OF THE 3RD
FLOOR OFFICE SPACE AT HISTORIC CITY HALL, LOCATED AT 1130
WASHINGTON AVENUE, MIAMI BEACH, FLORIDA; SAID CONTINUED
USE ON A MONTH- TO-MONTH BASIS, TERMINABLE UPON NOTICE
BY THE CITY, BUT OTHERWISE PURSUANT TO THE TERMS AND
CONDITIONS OF THE PREVIOUSLY EXISTING LEASE AGREEMENT
DATED, JULY 14, 1993, BETWEEN THE CITY AND THE UNIVERSITY OF
FLORIDA; AND FURTHER AUTHORIZING THE CITY MANAGER TO
NEGOTIATE AN IN-KIND SERVICES AGREEMENT WITH THE
UNIVERSITY OF FLORIDA
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
On November 18, 1998, the City Commission referred the Status Report on City-owned properties
which are leased to other entities (City as lessor) and privately owned properties which are leased
by the City (City as Lessee) to the Finance and Citywide Projects Committee. (Status report
attached. )
The Finance and Citywide Projects Committee met on December 22, 1998, and referred the action
items requested in the status report back to the City Commission. One of the issues addressed by
the Committee related to the University of Florida College of Architecture's continued use of the
3rd Floor office space at Historic City Hall.
The City and University of Florida, on behalf of the College of Architecture, previously entered into
a Lease Agreement for the 3rd floor office space at Historic City Hall. The Lease term expired
because the University failed to timely exercise its option to extend the Lease. The University
approached the City and advised that its failure to exercise the renewal option was due to an
administrative oversight and sought approval to continue using the subject property.
continued....
AGENDA ITEM
DATE
~:9~
The Administration had no objection to said request and deemed that it would be in the best interest
of the City to permit the University to remain as a tenant-at-will subject to the same terms and
conditions of the previously existing Lease Agreement.
ANAL YSIS:
The Finance and Citywide Projects Committee concurred with the Administration's recommendation
to permit the University of Florida's College of Architecture to remain on the subject property, on
a month-to-month basis, until such time as the University of Florida submits a detailed proposal of
in-kind services to the City. Said proposal to be submitted no later than March I, 1999, at which
time a more permanent arrangement would be negotiated and presented to the City Commission.
CONCLUSION:
It is recommended that the City Commission adopt the Resolution authorizing the University of
Florida College of Architecture to continue using the 3rd floor office space at Historic City Hall, on
a month-to-month basis, pursuant to the terms and conditions of the previously existing Lease
Agreement; and authorizing the City Manager to negotiate an in-kind services agreement with the
University.
SR:CMC:JD:rd4.f(
\ ~ /
Attachment-
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T:\AGENDA\ 1 999\JAN0699\REGULAR\UNIVFLOR.MEM 12/28/98.4