2009-27131 ResoRESOLUTION NO. 2009-27131
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING ON FIRST READING, A
LEASE AGREEMENT BETWEEN THE CITY AND KLARA GERSHMAN
M.D. PA, FOR USE OF APPROXIMATELY 1,926 SQUARE FEET OFCITY-
OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, SUITE
400, MIAMI BEACH, FLORIDA; SAID LEASE HAVING AN INITIAL TERM
OF THREE YEARS, WITH AN ADDITIONAL THREE YEAR RENEWAL
TERM, AT THE CITY'S SOLE DISCRETION; WAIVING BY 5/7THS VOTE,
THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS, AS
REQUIRED BY SECTION 82-39 OF THE MIAMI BEACH CITY CODE;
FURTHER SETTING A PUBLIC HEARING ON SEPTEMBER 9, 2009, FOR
THE SECOND READING (AND FINAL APPROVAL) OF THE LEASE
AGREEMENT
WHEREAS, on October 17, 2001 the City Commission adopted Resolution No.
2001-24661, authorizing the purchase of 1701 Meridian Avenue with the intention of
preserving the retail environment on the ground floor of the property; and
WHEREAS, Raben, Feldman & Associates, M.D. PA, has been a tenant of the
Property since March 1994, pursuant to a lease agreement with the previous owner of the
Property, Gazit Meridian, Inc.; said lease having expired on February 28, 2009; and
WHEREAS, Klara Gershman M.D. PA recently acquired Raben, Feldman &
Associates, M.D. PA and is desirous of remaining as a tenant; and
WHEREAS, Dr. Klara Gershman has requested a new lease, said proposed lease
having an initial term of three years, commencing October 1, 2009 and ending September
31, 2012, with one additional three year renewal term, to continue providing medical
services in their current space; 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 lease, with the second (and final) reading followed by an
advertised public hearing to obtain citizen input; and
WHEREAS, the Administration would hereby recommend that the Mayor and City
Commission approve the attached Lease Agreement on first reading, and hereby set the
public hearing on September 9, 2009, for second reading and final approval of the
Agreement; and
WHEREAS, Section 82-39 of the City Code further provides for the waiver of the
competitive bidding and appraisal requirements, by 5Rtns vote of the Mayor and City
Commission, for leases of City land, upon a finding by the Mayor and City Commission that
the public interest would be served by waiving such conditions; the Administration would
also hereby recommend that the Mayor and City Commission approve said waiver.
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 first reading, a Lease Agreement between the City and
Klara Gershman M.D. PA, for use of approximately 1926 square feet of City-owned
property, located at 1701 Meridian Avenue, Suite 400, Miami Beach, Florida for an initial
term of three years with an additional three year renewal term, at the City's sole discretion,
and waiving by 5/7tl'S vote, the competitive bidding and appraisal requirements, as required
by Section 82-39 of the Miami Beach City Code; further setting a public hearing on
September 9, 2009, for the second reading (and final approval) of the Lease Agreement.
PASSED and ADOPTED this 15th day of July, 2009.
ATTEST:
~.;~
Robert Parcher, CITY CLERK Matti Herrera Bower, MA R
JMG\HMFWPWCV\rlr
F:\RHCD\$ALL\ECON\$ALLWSSET\777-17th Street\Gershman\GERSHMAN Lease Agreement.1st Reading.RES.doc
APPROVED A3 TO
FORM ~ LANGUAGE
FOR ON
G15ag
oats
COMMISSION ITEM SUMMARY
Cnndpnced Title
Request for approval for a Lease Agreement between the City and Klara Gershman M. D, PA for use of 1926
SF of City-owned property located at 1701 Meridian Avenue, Suite 400, for a term of three years, with an
additional three year renewal term, waiving by 5/7ths vote the competitive bidding and appraisal
requirements as required by Section 82-30 and setting a public hearing on September 9, 2009 for second
reading and public hearing.
Key Intended Outcome Supported:
Increase resident satisfaction with the level of services and facilities.
Supporting Data (Surveys, Environmental Scan, etc.):
Approximately 40% of retail businesses surveyed, rank Miami Beach as one of the best places to do
business and 61% of the same group would recommend Miami Beach as a place to do business.
Issue:
Should the Ci Commission a rove the lease a reement?
Item 5
FIRST READING
In 2001, the City Commission authorized the purchase of 1701 Meridian Avenue to address the City's
ongoing need for administrative office expansion. Raben, Feldman & Associates, M.D. had a lease with the
previous owner which expired February 29, 2009 and is currently on a month-to-month extension. The lease
governed approximately 2,851 square feet ofCity-owned property. Dr. Klara Gershman has since acquired
the medical practice and has requested a new lease with a reduced square footage. The proposed new
lease will incorporate the following terms:
• Square Footage: 1,926 per updated 2009 City survey.
• Rent: Tenant has agreed to a rent increase from the currently paid $23.36 per SF to $35 per
SF, including Common Area Maintenance (which includes operating expenses and insurance);
• Security Deposit: Upon execution of the Agreement, the Tenant will furnish the City a Security
Deposit in the sum of $8,377.99.
Section 82-39 provides for the waiver of the competitive bidding and appraisal requirements, by 5/7ths 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. At the March 10, 2009 meeting of the Finance and Citywide
Projects Committee, the Committee determined that it was in the public's best interest to forgo competitive
bidding and staff should proceed in leasing the identified leasable space in the 1701 Meridian Avenue
Building according to market rates and industry standards.
A Planning Department analysis finds that the use of this space is consistent with the land use designation
contained in the Comprehensive Plan.
Adviso Board Recommendation:
Finance & Ci ide Projects Committee, March 10, 2009
Financial Information:
Source of Funds: Amount Account
--_
n/a 1 n/a
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Ana Cecilia Velasco extension 6727
Si n-Offs:
Department Director Assistant City Manager City Manager
AP H JMG
T:WGENDA\2009Uu1y 15\Regular\GERSHMAN Lease Agreement 1st Reading SUM.doc
m MIAMIBEACH
VLJ
AGENDA ITEM ~~C
DATE 7 I S ~
m MIAMIBEACH
City of Miami Beach, 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
FIRST READING
DATE: July 15, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING ON FIRST READING, A LEASE AGREEMENT
BETWEEN THE CITY AND KLARA GERSHMAN M.D. PA, FOR USE OF
APPROXIMATELY 1,926 SQUARE FEET OFCITY-OWNED PROPERTY, LOCATED AT
1701 MERIDIAN AVENUE, SUITE 400, MIAMI BEACH, FLORIDA; SAID LEASE HAVING
AN INITIAL TERM OF THREE YEARS, WITH AN ADDITIONAL THREE YEAR
RENEWAL TERM, AT THE CITY'S SOLE DISCRETION; WAIVING BY 5/7THS VOTE,
THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS, AS REQUIRED BY
SECTION 82-39 OF THE MIAMI BEACH CITY CODE; FURTHER SETTING A PUBLIC
HEARING ON SEPTEMBER 9, 2009, FOR THE SECOND READING (AND FINAL
APPROVAL) OF THE LEASE AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOMES SUPPORTED
To ensure well-maintained facilities.
ANALYSIS
The subject leasable space is a medical office in the City-owned building at 1701 Meridian Avenue
(a.k.a. 775 17th Street) purchased in 2001 in order to address the City's ongoing need for
administrative office expansion. At the time, Raben, Feldman & Associates, M.D. had a Lease
Agreement commencing May 18, 1994, with Gazit Meridian, Inc., the previous owner of the property.
Upon purchase of the property, the City continued to honor the Lease Agreement which expired on
February 29, 2009.
The Lease Agreement governed approximately 2,851 square feet of City-owned property and the
rent had been adjusted over the term with CPI increases to the current rental rate of $23.36 per SF,
including CAM costs.
Raben, Feldman & Associates have remained in the space on amonth-to-month tenancy. Dr. Klara
Gershman has recently acquired the medical practice and has requested a new lease to encompass
a reduced area of approximately 1,926 square feet in order to continue to provide medical services.
The proposed Lease Agreement has an initial term of three years commencing October 1, 2009,
and ending September 30, 2012, with one additional three year renewal term. The Tenant has
agreed to the terms outlined below.
Commission Memorandum
Gershman Lease Agreement
July 15, 2009
Page 2 of 2
Summary of Terms:
Square Footage: 1,926 per updated 2009 City survey.
Rent: Tenant has agreed to increase the rent from the current rate of $23.36 per
SF, including CAM, to $35 per SF, including CAM. The annual rent to the
City is $67,410.00 or $5,617.50 per month.
Common Area Maintenance (CAM) costs: Amended to $6.90 per SF to reflect current costs,
which includes operating expenses and insurance.
Security Deposit: Tenant shall furnish the City a Security Deposit in the sum of $8,377.99.
Review of Comparable Market Analysis:
A review of nearby available space revealed that the asking price for office space at 1680 Meridian
Avenue is $35 per SF Gross/Full Service.
A recent review of LoopNet, the industry's resource for commercial real estate, found that available
office space in the 33139 zip code area are listed with a range of $21.60 - $55.00 with an average
rate of $ 31.60 Gross/Full Service. Therefore, the proposed rent of $35 per SFGross/Full Service
for Dr. Gershman is within the range of market rates, and the use of the office space is feasible for
market and area conditions.
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 (see attached);
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,
by 5/7ths 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. At the March 10, 2009, meeting
of the Finance and Citywide Projects Committee, the Committee determined that it was in the
public's best interest to forgo competitive bidding and staff should proceed in leasing the identified
leasable space in the 1701 Meridian Avenue Building according to market rates and industry
standards.
Based on the aforementioned, the Administration recommends that the Mayor and City Commission
approve on first reading, the Lease Agreement by and between the City and Klara Gershman, M.D.,
PA, for the lease of approximately 1,926 square feet of City-owned property, located at 1701
Meridian Avenue, Suite 400, Miami Beach, Florida, for an initial term of three years, with one
additional three year renewal term, at the City's sole discretion, waiving by 5/7~hs vote, the
competitive bidding and appraisal requirements, as required by Section 82-39 of the Miami Beach
City Code; and further setting a public hearing on September 9, 2009 for the second reading (and
final approval) of the Lease Agreement.
JMG\HMFWPWCV\rlr
F:\RHCD\$ALL\ECON\$ALLWSSET1777-17th Street\Gershman\GERSHMAN Lease Agreement.1st Reading.MEM.doc
m MIAMIBEACH
PLANNING DEPARTMENT
INTEROFFICE MEMORANDUM
To: Anna Parekh, Real Estate, Housing & Comm. Development Director
,~. ~....W,a
FROM: Jorge G. Gomez, Planning Director ~~.~ ~, ~~~ ,„~
DATE: April 2, 2009
SUBJECT: Analysis of Proposed Lease Agreement between the City and Klara Gershman,
M.D. PA - 1701 Meridian Avenue
Pursuant to your request, this memorandum will serve as a planning analysis of the
proposed lease agreement between The City and Klara Gershman, M.D. PA, for use
approximately 1,926 s.f. of City-owned office space located at 1701 Meridian Avenue, Suite
400, said lease having a term of three (3) years.
Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or
lease of City-owned land be analyzed from a planning perspective so that the City
Commission and the public are fully appraised of all conditions relating to the proposed sale
or lease. The following is an analysis of the criteria delineated in the Code:
Whether or not the proposed use is in keeping with city goals and objectives
and conforms to the city comprehensive plan.
Consistent -The subject property, 1701 Meridian Avenue, is an office building with
retail spaces on the ground floor. The Future Land Use Map of the City's
Comprehensive Plan designates the site as CD-3 Commercial High Intensity.
The Lease Agreement between the City and Klara Gershman, M.D. PA, for use of
the office space would be consistent with the land use designation contained in the
Comprehensive Plan.
2. The impact on adjacent property, including the potential positive or negative
impacts such as diminution of open space, increased traffic, noise level or
enhanced property values, improved development patterns and provision of
necessary services. Based on the proposed use of the property, the city shall
determine the potential impact of the project on city utilities and other
infrastructure needs and the magnitude of costs associated with needed
infrastructure improvements. Should it become apparent that further
evaluation of traffic impact is needed, the proponent shall be responsible for
obtaining a traffic impact analysis from a reputable traffic engineer.
Consistent -The property subject to the lease is a office within the 777 office
building. The property has been and is currently in use as an office building and
retail space. There would be no diminution of open space as no new construction is
being proposed. No additional utility or infrastructure is necessary.
Proposed Lease - Klara Gershman, M. D. PA
1701 Meridan Avenue.
April 2, 2009
Page 2
3. A determination as to whether or not the proposed use is in keeping with a
public purpose and community needs, such as expanding the city's revenue
base, creating jobs, creating a significant revenue stream, and improving the
community's overall quality of life.
Consistent -The office lease generates an income stream for the City, and the
lounge provides jobs for local workers. As long as this practice operates in a
responsible way, it has the potential to be an asset to this area of the City.
4. Determination as to whether or not the development is in keeping with the
surrounding neighborhood, will block views or create environmental
intrusions, and evaluation of the design and aesthetic considerations of the
project.
Consistent -The office is already in operation, and has not created negative effects
on the surrounding neighborhood. It is completely within the building.
5. The impact on adjacent properties, whether or not there is adequate parking,
street and infrastructure needs.
Consistent -The impact on adjacent properties should be minimal, as the office is
already in use and within the building. Parking is available nearby. No further
infrastructure needs are anticipated.
6. A determination as to whether or not alternatives are available for the
proposed disposition, including assembly of adjacent properties, and whether
the project could be accomplished under a private ownership assembly.
Consistent -This criterion is not applicable as the office is already operating within
the subject space, and the proposed lease extends the term of the lease.
7. Within the constraints of public objectives, the department should examine
financial issues such as job generation, providing housing opportunities, and
the return to the city for its disposition of property.
Consistent -The existing office slightly increases the job base of the City. The
proposed lease would be expected to maintain this level of job creation. No housing
opportunities are created by the proposed lease.
8. Such other issues as the Planning Department may deem appropriate in
analysis of the proposed disposition.
Planning Staff has not identified any further items.
JGG/RGL
F:IPLAN\$ALLIGEN_CORR\INTEROFF\Shapiro Klara Gershman, M.D. PA planning analysis.doc