2009-27187 ResoRESOLUTION NO. 2009-27187
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING ON SECOND READING (AND
FINAL APPROVAL), FOLLOWING A DULY NOTICED PUBLIC HEARING,
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; AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE THE LEASE AGREEMENT
WHEREAS, on October 17, 2001 the City Commission adopted Resolution No.
2001-24661, authorizing the purchase of 1701 Meridian Avenue building (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. 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, on July 15, 2009, pursuant to Resolution No. 2009-27131, the Mayor
and City Commission approved the Lease Agreement on first reading; waived by 5/7tns
vote, the competitive bidding and appraisal requirements; and set the public hearing on
September 9, 2009, for second reading and final approval of the Lease Agreement; and
WHEREAS, said public hearing was held on September 9, 2009.
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 second reading (and final approval), following a duly
noticed public hearing, a Lease Agreement between the City and Klara Gershman M.D.
PA, for use 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 an
additional three year renewal term, at the City's sole discretion, and authorizing the Mayor
and City Clerk to execute the Lease Agreement.
PASSED and ADOPTED this 9th day of September, 2009.
ATTEST:
Robert Parcher, CITY CLERK
atti Herrera Bower, MAYOR
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COMMISSION ITEM SUMMARY
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A.Resolution approving on second reading, following a duly noticed public hearing, 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.
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 Ma or and Ci Commission a rove the Lease A reement?
Item 5
SECOND READING 8~ PUBLIC HEARING
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 28, 2009 and is currently on amonth-to-month extension. The lease
governed approximately 2,851 square feet of City-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);
• Securit~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.
On July 15, 2009, pursuant to Resolution No. 2009-27131, the Mayor and City Commission approved the
Lease Agreement on first reading; waived by 5/7`h vote, the competitive bidding and appraisal requirements;
and set the public hearing on September 9, 2009, for second reading and final approval of the Lease.
Adviso Board Recommendation:
Finance & Ci ide Projects Committee, March 10, 2009
Fiinancial Information:
Source of Funds: Amount Account
n/a 1 n/a
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Robert Reboso, extension 6443
Sign-Offs:
Department Director Assists City anager City Manager
AP G
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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 mmission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 9, 2009 SECOND READING
PUBLIC HEARING
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING ON SECOND READING (AND FINAL APPROVAL),
FOLLOWING A DULY NOTICED PUBLIC HEARING, 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; AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE 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
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 28, 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, at the City's sole
discretion. The Tenant has agreed to the terms outlined below.
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 shall be $67,410.00 or $5,617.50 per month.
Commission Memorandum
Gershman Lease Agreement
September 9, 2009
Page 2 of 2
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 SF Gross/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;
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 5/7tns 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.
On July 15, 2009, pursuant to Resolution No. 2009-27131, the Mayor and City Commission
approved the Lease Agreement on first reading; waived by 5/7th vote, the competitive bidding and
appraisal requirements; and set the public hearing on September 9, 2009, for second reading and
final approval of the Lease Agreement.
Based on the aforementioned, the Administration recommends that the Mayor and City Commission
approve on second reading, after a duly noticed public hearing, 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, and
authorize the Mayor and City Clerk to execute the Lease Agreement.
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