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2001-24250 RESO RESOLUTION 'NO: 2001-24250 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH (TENANT) AND GLORIA MILLER-ROSENTHAL (LANDLORD) IN THE ANNUAL AMOUNT OF $96,000, FOR THE ENTIRE PROPERTY LOCATED AT 1833 BAY ROAD, MIAMI BEACH, FLORIDA, TO BE USED FOR CERTAIN POLICE DEPARTMENT OPERATIONS AND FOR THE PARKING DEPARTMENT SIGN SHOP; SAID LEASE COMMENCING ON FEBRUARY 1, 2001, AND TERMINATING ON JANUARY 31, 2004; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID LEASE AGREEMENT WHEREAS, on January 21, 1998, the Mayor and City Commission adopted Resolution 98-22639, approving a Lease Agreement for the second floor of the building located at 1833-37 Bay Road (the Property) to house certain off-site operations of the Miami Beach Police Department; and WHEREAS, on September 9, 1998, the Mayor and City Commission approved an amendment to the Lease Agreement to include the I st Floor space, thereby increasing the total number of square feet in the leased Property and the total amount of rent due, in order to accommodate the Police Department's expanding needs; and WHEREAS, the existing Lease Agreement expires on January 31, 2001, and the Police Department continues to require the use of the 2nd Floor of the Property, but has reduced its operations and is no longer in need of the 1st Floor space; and WHEREAS, the Parking Department is in need of locating its sign shop, which can be accommodated in the I st Floor space being vacated by the Police Department; and WHEREAS, funding for the lease of the Property is available in the respective Department's budgets; and WHEREAS, upon review of the existing inventory of available properties that meet the criteria for the proposed uses, the Administration determined that leasing the entire Property, would provide the most cost effective arrangement, as well as the most desirable location for the both of the intended uses. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission herein approve the attached Lease Agreement between the City of Miami Beach and Gloria Miller-Rosenthal for the entire property located at 1833 Bay Road, Miami Beach, Florida, to be used for certain Police Department operations and for the Parking Department sign shop, and further authorize the Mayor and City Clerk to execute said Lease Agreement. <.. PASSED AND ADOPT~~day of January 31, ~ () FORMaLANGUAGI Attest: 6 f~ a FOREXECUt'ION CITYCL~ JD: rd ( \-'2..5-0 I tffi........,- T:\AGENDA\2001VAN3101\REGULAR\1833BAY,RES 1/25/1:f \- 001. CITY OF MIAMI BEACH CITY fW.L t 700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.fl.us COMMISSION MEMORANDUM NO. (PO -01 TO: Mayor Neisen Kasdin and Members of the City Commission DATE: January 31, 2001 SUBJECT: Jorge M. Gonzalez \ City Manager () ~ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH (TENANT) AND GLORIA MILLER-ROSENTHAL (LANDLORD) FOR THE ENTIRE PROPERTY LOCATED AT 1833 BAY ROAD, MIAMI BEACH, FLORIDA, TO BE USED FOR CERTAIN POLICE DEPARTMENT OPERATIONS AND FOR THE PARKING DEPARTMENT SIGN SHOP, AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID LEASE AGREEMENT FROM: ADMINISTRATION RECOMMENDATION: Adopt the Resolution. ANALYSIS On January 21, 1998, the Mayor and City Commission adopted Resolution No. 98-22639 approving a Lease Agreement between the City of Miami Beach (Tenant) and Gloria MilIer"Rosenthal (Landlord) for a portion of the property located at 1833 Bay Road (the Property). The leased Property, included the second floor of the building (approximately 3000 square feet) and a portion of the rear yard of the Property, all of which have been used to accommodate certain Police Department operations. On September 9, 1998, because of the Police Department's need to expand its on site operations, the Mayor and City Commission approved an amendment to the Lease Agreement, via Resolution 98-22862, to increase the leased square footage within the building to 6,000, by adding the use of the first floor space. The current Lease Agreement expires on January 31, 2001. Over the past several years, the City has invested approximately $ 75,000 in improvements and upgrades to the property to meet the Department's needs. Effective February 1, 2001, the Department will no longer be needing the use of the 1st Floor space. However, the City's Parking Department, which is in need of additional space to house their Sign Division, has requested the use of the 1 st Floor space. As such, the City has the opportunity to continue to take advantage of the improvements previously made and maintain control of the whole property, which greatly benefits the continuing operation and intended use. Additionally, the Lease includes the use of the rear yard, which along with the fact that the Property is located adjacent to a municipal parking lot, enhances AGENDA ITEM -Rf'J D DATE~ Commission Memorandum January 31, 2001 Resolution Approving Lease of 1833 Bay Road Page 2 the respective departments' ability to' manage and aperate their respective tasks. The Lease Agreement far 1833 Bay Raad cansists of approximately six thausand (6,000010) square feet of interiar space, and includes the use of a rear yard area which measures approximately 4,000:1: square feet. The propased lease term is for the three-year period cammencing an February 1, 2001, and expiring at midnight an January 31, 2004, subject to' funding availability. The proposed Lease Agreement contains a provisian which allaws the City to' terminate the lease with a ninety (90) day natice if funding far the lease af the Property is nO' langer available. The rental rate of $16.00 per square foot which is being propased is well under that afthe current market rate far similar space, which was determined to range from approximately $18,00 to' $24.00 per square faot. Althaugh the newly propased rate af $16 per square foot is higher than that af the $12 per square foat rate pravided in the current Lease, a review af the matter revealed the fallawing: . The $12 per square faat rate previausly negatiated was well under the 1997 market rate af $15 to' $17 per square faat. . Landlord had agreed to' the $12 rate because of the City's cammitment to improve the interiar space. Additionally, the Landlard presented informatian to suppart the increase as follaws: . Landlard's Property Taxes increased by appraximately 31 % ($2,896) aver the past three years . Cansumer Price Index (CPI) increased by approximately 7.5% ($5,381) over the past three years . City is provided the use af approximately 464 square feet af interiar space at rto cast . City is provided the use af approximately 4,000 square feet af rear yard at nucast Based on the above, the Administratian negotiated the afarementianed $16 per square faat rate, which equates to' $96,000 per year ($8,000 per manth). The City will nat be respansible for any ather lease related casts to' the Landlard, including any casts far Property Taxes. Funding to caver the proposed Lease payments is available in both the Police Department and Parking Department Fiscal Year 2000/2001 budgets, in accounts 011.1140.000.323 and 480.0462.000.323, repectively, As stated abave, the proposed Lease Agreement pravides that the City may terminate the lease, with a ninety (90) day natice, if the funding saurce far the lease of the Property is no langer available, The City Attarney's Office has reviewed and approved the terms af the Lease Agreement with regards to' liability and legal issues. In light of the faregaing, the Administratian deems that the negotiated rate is below that of current market value, the propased Lease Agreement wauld provide the most cast-effective arrangement, the most desirable locatian for the existing Police Department aperations, as well as providing a suitable lacation far the Parking Department's Sign Division, and recammends approval of same. JMG:~:JD:rlr QW T:\AGENDA\200 1 IJAN31 0 1 lREGULARI 1833BA Y,MEM t/24/0 1 LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this..3l&. day of January, 2001 , by and between GLORIA MILLER ROSENTHAL, an individual (Landlord) and the CITY OF MIAMI BEACH, a Florida municipal corporation (Tenant). WHEREFORE, in consideration of the rent to be paid herein, and further good and valuable consideration, receipt of which is hereby acknowledged, and the further consideration of the mutual covenants each to the other made as follows: 1. Leased Premises. The Landlord does hereby lease to the Tenant the whole of the building, including but not limited to the first and second floor, which measure approximately six thousand (6,000+/-) square feet, along with all of the land, including but not limited to all of the yard areas in and around the building, and legally described as follows: Lot 10 Block 13 Alton Beach Realty Company Amended Plat Plat Book 9 Page 146 OR 16472-196107945 Official Records of Dade County, Florida The Tenant understands and acknowledges that the Landlord makes no warranties or representations and Tenant is relying on no such warranties or representations that the Yard Area may be used for parking or storage of vehicles or that there is or will be vehicular access to the Yard Area. 2. Term. This Agreement is for the three-year period commencing on February 1,2001, and expiring at midnight on January 31, 2004. 3. Rrn.t. The Tenant agrees to pay to the said Landlord, at the address listed in this Agreement, an annual rental fee of $96.000.00, to be paid on a monthly basis, in the amount of$8.000,OO per month, by check. Rent shall become payable on or about the first working day of each month, commencing on February I, 200 I, and on the first business day of each successive month until the end of the term of this Agreement, or earlier cancellation. If the Tenant fails to pay any rental payment due hereunder within ten (10) days of the due date there shall be added to such payment a late charge of$50.00, If the rental payments due hereunder are not received within ten (10) days after the normal monthly payment due date, then Landlord shall provide Tenant with a written notice to remedy such default in payment. Upon failure of Tenant to cure such default in payment within three (3) days after receipt from Landlord of such written notice to remedy, Landlord, at its option, may cancel this Agreement and shall have the right to re-enter and re-possess the Leased Premises. 4, Use ofthe Leased Premises. It is understood and agreed that the Leased Premises shall be used by the Tenant for the operation, management, business function and direction of the City of Miami Beach Police Department and City of Miami Beach Parking Department, and for any and all other lawful uses deemed in the Tenant's best interest by the Tenant. 5. Telephone. Tenant shall pay its own cost for telephones it uses and any additional installations it orders. 6, Maintenance and Utilities. The Tenant will pay for the utilities attributable to its use of the Leased Premises. The Tenant agrees to maintain the Leased Premises in order and repair, including furnishings, utility service connections on the Leased Premises and any routine mechanical and electrical rearrangements installed by the Tenant, routine janitorial and custodial service, and other related services necessary to maintain the Leased Premises in good, safe and sanitary conditions. 7. Structural Alterations by Tenant. The Tenant may not make major structural alterations and/or improvements upon the Leased Premises without the prior written consent of the Landlord, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, Landlord herein agrees to continue to provide hurricane (storm) shutters for the Leased Premises. Such storm shutters to be provided, at a minimum, shall contain a product control 2 , approval number from Metropolitan Dade County, and meet all applicable requirements for same under the South Florida Building Code. Tenant shall be responsible for the installation and removal of said shutters as the need arises. 8. Destruction of the Leased Premises. In the event that the Leased Premises shall be damaged, destroyed or otherwise rendered unusable for the purpose of this Agreement and thereby the fulfillment of the Agreement by the parties is rendered impossible, then and thereupon this Agreement shall automatically terminate and Landlord shall take back the premises, and there shall be no further liability as to Tenant with regard to the terms/conditions contained herein.. 9. Assignment and Subletting, The Tenant shall not assign or otherwise transfer this Agreement nor sublease any portion of the Leased Premises without the prior written consent of the Landlord. 10. Sigm. Tenant shall assume the cost of any exterior sign. All signs shall be removed by the Tenant upon the expiration of this Agreement at the Tenant's own expense. 11. Landlord's Right of Entry. Except for non-payment of rent, which is separately addressed in Paragraph 3 of this Agreement, the Landlord shall have the right to re-enter and repossess the Leased Premises and to cancel this Agreement in the event of default by the Tenant of any material covenant or agreement required to be performed by the Tenant, provided the Tenant shall be given the opportunity to cure, Upon the failure of the Tenant to substantially cure such default within sixty (60) days after receipt from the Landlord of a written notice to remedy the default, Landlord shall have the right to re-enter and repossess the Leased Premises and to cancel this Agreement. 12. Cancellation by the Tenant. In the event that Tenant's funding source for payment, as approved by the Mayor and City Commissioners in the Police Department's and Parking Department's respective Fiscal Year budgets, pursuant to this Agreement is discontinued, the 3 Tenant may cancel this Agreement, without cause and for convenience, upon the giving of ninety (90) days written notice to the Landlord of the Tenant's intent to cancel. In such event, the Tenant shall have no further obligation or liability to the Landlord. 13. Liability for Damage or Injury. The Tenant and its employees, officials or servants shall not be responsible for any damage or i~ury that may occur to the Landlord, its agents, servants, employees, clients, other Tenants or property from any cause during the period covered by the Agreement; provided that this paragraph shall not apply in the event the damage or injury is caused by the negligence of the Tenant, its agents, servants and employees. 14. illtl. Landlord shall be responsible for and pay all Federal, State, and local taxes due upon the Leased Premises or otherwise arising out of this Agreement. 15. Cancellation upon Purchase. In the event that the parties hereto successfully negotiate a purchase agreement for the Leased Premises during the'term of this Agreement, then this Agreement shall automatically terminate at the closing of such purchase agreement. 16. Notices, It is understood and agreed between the parties hereto that written notice, correctly addressed to Landlord as follows: Gloria Miller Rosenthal 1310 East Royal Palm Way Boca Raton, Florida 33432 and notice to the Tenant as follows: City Manager, clo Jose Damien, Asset Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 with copies to: City Attorney City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 shall constitute sufficient notice to comply with this Agreement. 4 17. Venue. Venue in any legal proceedings arising by virtue of this Agreement shall be in Dade County, Florida. 18, Limitation of Liability. Tenant shall look solely to Landlord's interest in the Leased Premises for the satisfaction of any of Tenant's rights or remedies herein or for the collection of a judgement or other judicial process requiring the payment of money by Landlord in the event of any default by Landlord hereunder. No other property or assets of Landlord shall be subject to the levy, execution, judgement or other enforcement procedure for the satisfaction of Tenant's rights or remedies under or with respect to this Agreement, the relationship of Landlord and Tenant hereunder or Tenant's use or occupancy ofthe Leased Premises. 19. Entire Agreement. Any amendments, alteration, variation or modification of this Agreement shall only be valid when they have been reduced to writing and duty sign by the authorized officials of the Tenant or the Landlord, IN WITNESS WHEREOF, the parties have set their names and assigns hereto the day and year first above mentioned. LANDLORD: TENANT: CITY OF MIAMI BEACH MAl~ tn.~~ ~A MILLER ROSENTHAL ATTEST: A~:o~rfld ~ / T:\AGE~AR\1833BAY.LSE 01/24/01 FORM & .FOR~ ~r~~ CITY CLERK AAJ /.4/,01,#1 - I-'-f-OU /~- 5