2009-26987 ResoRESOLUTION NO:
2009-26987
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AN EXTENSION AND FIRST
AMENDMENT OF THAT CERTAIN LEASE AGREEMENT BETWEEN THE
CITY OF MIAMI BEACH, AS TENANT, AND PALM COURT AT 23RD
STREET, LTD., AS LANDLORD, FOR AN ADDITIONAL TERM OF ONE (1)
YEAR, COMMENCING ON AUGUST 1, 2009, AND ENDING ON JULY 31,
2010, DURING WHICH TIME DEVELOPMENT OF ALTERNATIVE
FACILITIES TO RELOCATE THE PARKING DEPARTMENT OPERATIONS
SHALL BE COMPLETED; FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE SAME.
WHEREAS, on November 2, 2004, the voters of Miami Dade County
approved a referendum supporting the Building Better Communities General
Obligation Bond Program (BBC GOB) to provide $2.9 billion to fund more than
300 capital improvements throughout the County over the next 15 to 20 years;
and
WHEREAS, the City had a total of eight projects in advanced stages of
renovation, including Old City Hall which had incurred structural damage, and
further necessitated the need to relocate the Parking Department, which was a
tenant in the Old City Hall Building to new leased premises; and
WHEREAS, on June 7, 2006 the City Commission passed Resolution No.
2006-26223 approving a Lease Agreement with an initial term of two years,
commencing on August 1, 2006 and expiring on July 31, 2008, between the City,
as Tenant, and Palm Court at 23rd Street, Ltd., as Landlord, for approximately
6,900 sq. ft. at 309 23rd Street (Palm Court), which met the needs of the Parking
Department; and
WHEREAS, the Lease contains a one year renewal option, exercisable at
the City's discretion; the City exercised the option to renew, which terminates on
July 31, 2009; and
WHEREAS, the construction of the multipurpose garage which will
permanently house the Parking Department will not be completed July 31, 2009;
and
WHEREAS, the Landlord is willing to extend the Lease under the same
terms and conditions, for one additional year with an option for early termination
at six (6) months and nine (9) months, respectively, to accommodate the
construction schedule of the multipurpose garage; and
WHEREAS, the monthly rent for the Lease extension is $19,280.00.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission hereby approve an extension and First Amendment of that
certain Lease Agreement between the City of Miami Beach, as Tenant, and Palm
Court 23rd Street, Ltd., as Landlord for an additional term of one (1) year,
commencing on August 1, 2009 and ending on July 31, 2010, during which time
the development of alternative facilities to relocate the Parking Department
operations shall be completed; further authorizing the Mayor and City Clerk to
execute same.
PASSED and ADOPTED this 28th day of January , 2009
ATTEST:
~ G~~~/~
CITY CLERK
Robert Parcher
JMG/HMF/AP/ACV/mis
MAY R
Matti Herrera Bower
F:lneig\ECON\$ALLWSSET\Palm Court\PalmCourt.Lease 1stAmendment.RES.doc
APPROVED AS TO
FORM & LANGUAGE
N
IzZ OS~
ate
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving an extension and first amendment of
the lease agreement between the City and Palm Court for one year, with options for early termination for space occupied by the
Ke Intended Outcome Sup orted:
Increase resident satisfaction with the level of services and facilities.
Supporting Data (Surveys, Environmental Scan, etc.):
A total of 81% of residents surveyed identified that the appearance and maintenance of the City's public buildings
were considered excellent 17% or ood 64%
~_
wauc.
Shall the Mayor and City Commission approve the extension to the lease agreement for an additional year with two
provisions for early termination~
Item 5ummary~hcecommenaation:
Due to the restoration of Old City Hall and the subsequent impact to the space occupied by the Parking Department, the City entered
into a Lease Agreement with Palm Court at 23rd Street, Ltd., to relocate the Parking Department until such time as the departmenYs
permanent space in the multipurpose garage building on Meridian Avenue directly west of City Hall was complete.
The Lease Agreement terminates on July 31, 2009 and the Landlord has requested 180 days notice should the City wish to extend
the Lease - which will be February 1, 2009. In considering the need to extend the Lease, the City Administration reviewed the
Parking DepartmenYs operations and the need for a coin room with detailed specifications, including added measures for security in
any location. An interim move into unoccupied areas within City buildings was considered. However, the cost to move the
Department a second time and the disruption of customer services was deemed to be impractical. Additionally, the City has invested
$70,000 in the current space to make the required improvements for the operations of the Parking Department and to facilitate
access and functionality for the public.
The Lease Agreement, as negotiated, includes the following additional terms and conditions:
BASE RENT:
The City of Miami Beach pays an annual Base Rent for the Demised Premises with an annual increase of CPI or 4% whichever is
lower. The rent for the proposed extension year is projected to be $231,360 annually, or $19,280 monthly, based on the 4% capped
increase. Should the CPI calculate to a lower percentage, the rent will reflect the lower amount. These funds are provided for in the
Parking DepartmenYs budget. The rent for the first and second years of the Lease Agreement did not have an increase, however,
the renewable term and this subsequent extension is subject to the CPI or 4% increase, whichever is lower.
TENANT RESPONSIBILITIES FOR UTILITIES:
The City of Miami Beach will pay charges for water and sewer for the first floor which includes a restroom, and electricity cable,
internet, and telephone service for the entire Demised Premises provided to the faci~ity including, without limitation, all hookup fees
and impact fees. These fees were previously incurred by the City in the Parking Department's location in Historic Old City Hall.
IMPROVEMENTS: No additional improvements are needed during this lease term extension.
The Lease Agreement does not have any additional provisions for renewal. The Landlord has agreed to provide the City with a one
year extension and two provisions for early termination. The projected completion date of the multipurpose garage office space,
including internal finishings, is March 2010. The City has the option to terminate early on January 31, 2010 and again on April 30,
2010 to accommodate fluctuations that may occur in the construction and move-in schedule. All terms of the Lease Agreement
remain the same.
Therefore, the Administration recommends that the Mayor and City Commission approve an extension and first amendment of that
certain lease agreement between the City of Miami Beach, as Tenant, and Palm Court at 23rd Street, Ltd., as Landlord, for an
additional term of one (1) year, commencing on August 1, 2009, and ending on July 31, 2010, during which time development of
alternative facilities to relocate the Parking Department operations shall be completed, further authorizing the Mayor and City Clerk
to execute same.
Advisor Board Recommendation:
Financial Information:
Source of Funds: Amount Account
1 $77,120 480 0461 000 323
2 $77,120 480 0462 000 323
3 $77,120 480 0463 000 323
Total $231,360
Cit Clerk's Office Le islative Trackin :
Ana Cecilia Velasco, Asset Mana er x 6727
Sign-Offs:
Departm t ir~ector Assista City anager City Manager
AP ACV HMF
T:~AGENDA~2009~.1anu 28\Consent\Palm Court Lease 1st Amendm t.SUM.doc
~ ~~ ~ ~~I~ ~ ~. ~~~' ~ ACiEfi1~A~ tTEM C7/v
aAT~ ~ o~-0lc
~ MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~
DATE: January 28, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AN EXTENSION AND FIRST
AMENDMENT OF THAT CERTAIN LEASE AGREEMENT BETWEEN THE CITY
OF MIAMI BEACH, AS TENANT, AND PALM COURT AT 23RD STREET, LTD.,
AS LANDLORD, FOR AN ADDITIONAL TERM OF ONE (1) YEAR,
COMMENCING ON AUGUST 1, 2009, AND ENDING ON JULY 31, 2010,
DURING WHICH TIME DEVELOPMENT OF ALTERNATIVE FACILITIES TO
RELOCATE THE PARKING DEPARTMENT OPERATIONS SHALL BE
COMPLETED; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE SAME.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOMES SUPPORTED
To ensure well-maintained facilities.
ANALYSIS
Due to the restoration of Old City Hall and the subsequent impact to the space occupied by
the Parking Department, the City entered into a Lease Agreement with Palm Court at 23~d
Street, Ltd., to relocate the Parking Department until such time as the department's
permanent space in the multipurpose garage building on Meridian Avenue directly west of
City Hall was complete.
The City Commission passed Resolution No. 2006-26223 approving a Lease Agreement
with an initial finro year terms commencing August 1, 2006 and terminating July 31, 2008.
The City exercised a one year renewal provision with a renewal termination date of July 31,
2009. The Landlord has requested 180 days notice should the City wish to extend the
Lease. In considering the need to extend the Lease, the City Administration reviewed the
Parking Department's operations and the need for installation of a coin room with detailed
specifications, including added measures for security in any location. An interim move into
unoccupied areas within City buildings was considered. However, the cost to move the
Department a second time and the disruption of customer services was deemed to be
impractical. Additionally, the City has invested $70,000 in the current space to make the
required improvements for the operations of the Parking Department and to facilitate access
and functionality for the public.
Commission Memorandum
Pa/m Court Lease 151 Amendment
January 28, 2009
Page 2 of 2
The Lease Agreement, as negotiated, includes the following additional terms and conditions:
BASE RENT: .
The City of Miami Beach paid a prorated amount of $14,375 monthly until the coin
room improvement was completed. Beginning in February of 2007, the City paid the
full annual Base Rent for the Demised Premises in the amount of $17,825 per
month. There was no provision for an increase in the Base Rent in the second year.
The term of Lease provides for an annual increase based on CPI or 4%, or $18,538
monthly whichever is lower, for the one year renewal term that expires July 31, 2009.
The rent for the proposed extension of one year is projected to be $231,360
annually, or $19,280 monthly based a negotiated 4% cap increase consistent with
the prior renewal term. Should the CPI calculate to a lower percentage, the rent will
reflect the lower amount. These funds are provided for in the Parking Department
budget.
TENANT RESPONSIBILITIES FOR UTILITIES:
The City of Miami Beach will pay charges for water and sewer for the first floor, and
electricity, cable, internet, and telephone service for the entire Demised Premises
provided to the facility including, without limitation, all hookup fees and impact fees.
These fees were previously incurred by the City in the Parking Department's location
in Historic Old City Hall.
• IMPROVEMENTS:
No additional improvements are required during this lease term.
The Lease Agreement does not have any additional provisions for renewal. The Landlord
has agreed to provide the City with a one year extension and two provisions for early
termination. The projected completion date of the multipurpose garage/office space,
including internal finishings, is March-April 2010. The City has the option to terminate early
on January 31, 2010 and again on April 30, 2010 to accommodate fluctuations that may
occur in the construction and move-in schedule. All terms of the Lease Agreement remain
the same.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve an extension
and first amendment of that certain lease agreement between the City of Miami Beach, as
Tenant and Palm Court at 23~d Street, Ltd., as Landlord, for an additional term of one (1)
year, commencing on August 1, 2009, and ending on July 31, 2010, during which time
development of alternative facilities to relocate the Parking Department operations shall be
completed, further authorizing the Mayor and City Clerk to execute same.
J MG/H F/AP/ACV
T.~IAGENDA120091January281ConsentlPa/mCourtLease 1stAmendment.MEM.doc