2009-27280 ResoItem C7BB
RESOLUTION NO: 2009-27280
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE
BUSINESS TERMS OF A SHORT-TERM LEASE AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND
MERIDIAN CENTER, LLC, AS LANDLORD, FOR THE PROPERTY
COMPRISING APPROXIMATELY 8,300 SQUARE FEET LOCATED
AT 1680 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, TO BE
USED BY THE CITY FOR ADMINISTRATIVE OFFICES FOR THE
CITY'S FIRE DEPARTMENT, FOR A TERM NOT TO EXCEED
EIGHT (8) MONTHS, COMMENCING ON FEBRUARY 1, 2010,
AND ENDING ON OR BEFORE SEPTEMBER 30, 2010; AND
FURTHER AUTHORIZING THE ADMINISTRATION AND CITY
ATTORNEY'S OFFICE TO FINALIZE THE LEASE AND
AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE THE FINAL LEASE AGREEMENT
WHEREAS, the Fire Department's administration and prevention offices have
occupied approximately 8,300 square feet of space at 1680 Meridian Avenue, via a Lease
Agreement, dated January 2, 2007, by and between Meridian Center; LLC, as Landlord,
and the City, as Tenant, approved by Resolution No. 2006-26344; and
WHEREAS, the existing lease was approved in order to vacate the historic fire
station building which housed fire Administration and fire prevention for renovations: and
WHEREAS, the existing lease is scheduled to terminate on January 31, 2010, and
will not be extended due to an existing holdover clause which requires that, after the
termination of the lease, the Tenant shall pay the Landlord rent at two times the rate
payable; and
WHEREAS, due to economic conditions and the resulting availability of more
favorable terms, the Landlord has been put on notice that the City will not extend the
existing lease; and
WHEREAS, the Fire Department will be relocated to the City-owned building,
located at 1701 Meridian Avenue, until the permanent fire station building has been
completed (which is not projected to be completed for at least another two years); and
WHEREAS, the space in 1701 Meridian Avenue requires modifications and
improvements which will not be completed until approximately May 31, 2010; and
WHEREAS, in the interim, the Administration is negotiating an extended
occupancy of the Fire Department at the existing space at 1680 Meridian Avenue under a
new short-term lease; the City's proposed terms for the new lease are attached as Exhibit
"A" hereto; and
WHEREAS, the proposed short-term lease will commence on February 1, 2010,
and will be written in a form acceptable to the City Attorney upon Landlord's acceptance of
the proposed terms; and
WHEREAS, the City's proposal is to modify the rent payments from the existing
$31/sf plus operating expenses, to the more comparable market rent of $25/sf gross; and
WHEREAS, if the proposed terms are not accepted by the Landlord of 1680
Meridian Avenue, then the Administration seeks authority herein to negotiate and execute
a new lease (to govern the continued use of 8,300 square feet of space by the fire
Administration and prevention office at 1680 Meridian Avenue) for an amount not to
exceed the current payments of $23,906.17 per month.
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 the business terms of a short-term lease agreement between
the city of miami beach, as tenant, and Meridian Center, LLC, as landlord, for the property
comprising approximately 8,300 square feet located at 1680 Meridian avenue, Miami
Beach, Florida, to be used by the City for administrative offices for the City's fire
department, for a term not to exceed eight (8) months, commencing on February 1, 2010,
and ending on or before September 30, 2010; and further authorizing the Administration
and City Attorney's office to finalize the lease and authorizing the City Manager and City
Clerk to execute the final lease agreement.
PASSED and ADOPTED this 9th day ofDeHEBEMBER , 2009
ATTEST:
fi P~~..,
MA OR
CITY CLERK
JMG/HMF/AP
T:\AGENDA\2009\December 9\Consent\Fire Dept New Lease RES.doc
APPROVED AS TO
FORM & LANGUAGE
& FO~rQXECUTION
!Z Y OR
COMMISSION ITEM SUMMARY
Condensed Title: '
Resolution approving a short term lease agreement between the City and Meridian Center, LLC., for the Fire
Department's extended occupancy at 1680 Meridian Avenue during the renovation of the City-owned space at 1701
Meridian Avenue.
Ke Intended Outcome Su orted:
Ensure well-maintained facilities.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
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 City of Miami Beach enter into ashort-term lease agreement with Meridian Center, LLC?
item Summa /Kecommendation:
The Fire Department's Administration and Prevention offices have occupied approximately 8,300 square feet of space
at 1680 Meridian Avenue, via a Lease Agreement effective January 2, 2007, by and between Meridian Center, LLC, as
Landlord, and the City, as Tenant. The existing Lease was approved by the City Commission in 2006 in order to
vacate the historic fire station building which housed Fire Administration and Fire Prevention, while the building
underwent extensive renovation. At that time, there was no vacant City-owned property available and comparable
market rent was approved to be paid in order to house the Fire Department's Administration and Prevention offices in
a privately owned building.
The renovation of the historic fire station building has not been completed. The existing Lease at 1680 Meridian
Avenue is scheduled to terminate on January 31, 2010, and does not have any renewal provisions; an existing
holdover clause would require that after the termination of the Lease, the Tenant would pay the Landlord rent at two
times the rate payable if they remain in the space. Furthermore, due to economic conditions and the resulting
availability of more favorable terms, the Landlord has been put on notice that the City would not be interested in a new
lease with the current term.
The Fire Department will be relocated to the City-owned building located at 1701 Meridian Avenue until the permanent
fire station building has been completely renovated. However, the existing space in 1701 Meridian Avenue requires
modifications and improvements, which are not expected to be completed until approximately May 31, 2010.
Therefore, staff has discussed options with the existing landlord and has communicated the City's interest in retaining
the existing 8,300 sf of space at 1680 Meridian Avenue under new and more favorable terms on a short-term basis.
As of December 3, 2009, the City's proposal was to modify the rent payments from the existing $31/sf plus operating
expenses, to the more comparable market rent of $25/sf gross. If accepted, this represents a savings to the City of
$6,614.50 per month for a minimum of four months, effective February 1, 2010, through May 31, 2010. If approved
and if necessary, the proposed terms may be extended monthly for an additional four months, through September 30,
2010. If terms are approved, a definitive Short-Term Lease Agreement will be prepared in a form acceptable to the
City Attorney for the continued use of the 8,300 square feet of space by the Fire Department's Administration and
Prevention office at 1680 Meridian Avenue. The funding for the lease term has been appropriated in the FY 2009/10
budget.
', As such, no additional funding is required; in fact, potential savings may be realized should the proposed terms be
accepted. While we believe that the Landlord is receptive to the new terms in no event would the City agree to terms
~~, less favorable than those in the current lease.
The Administration recommends that the Mayor and City Commission adopt the Resolution.
Aavisory t~oara Kecommenaation:
Financial Information:
Source of
Funds:
Cit Clerk's Of~ide~L
Anna Parekh, REHCD
Si n-Offs:
~~ Amount ~ Account T Approved
1 $191,250 011.1210.000323
Department Director Assistant City Manager C Manager
AP HF JMG
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AGENDA ITEM ~ ~~
DATE I Z-~J-O l
m MIAMIBEACH
City of Micmi Beach, 1700 Convention Center Drive, Miomi Beach, Florida 33139, vrww.miomibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 9, 2009
SUBJECT: A RESOLUTION OF THE MAYOR A CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING ASHORT-TERM LEASE AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND MERIDIAN
CENTER, LLC, AS LANDLORD, FOR THE PROPERTY COMPRISING
APPROXIMATELY 8,300 SQUARE FEET LOCATED AT 1680 MERIDIAN
AVENUE, MIAMI BEACH, FLORIDA, TO BE USED BY THE CITY FOR
ADMINISTRATIVE OFFICES FOR THE CITY'S FIRE DEPARTMENT, FOR A
TERM NOT TO EXCEED EIGHT (8) MONTHS, COMMENCING ON FEBRUARY
1, 2010, AND ENDING ON OR BEFORE SEPTEMBER 30, 2010; AND FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE SHORT-
TERM LEASE AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The Fire Department's Administration and Prevention offices have occupied approximately
8,300 square feet of space at 1680 Meridian Avenue, via a Lease Agreement effective
January 2, 2007, by and between Meridian Center, LLC, as Landlord, and the City, as
Tenant. The existing Lease was approved by the City Commission in 2006 in order to
vacate the historic fire station building which housed Fire Administration and Fire Prevention.
At that time, there was no vacant City-owned property available and comparable market rent
was approved to be paid in order to house the Fire Department's Administration and
Prevention offices in a privately owned building.
The renovation of the historic fire station building has not been completed. The existing
Lease at 1680 Meridian Avenue is scheduled to terminate on January 31, 2010, and does
not have any renewal provisions; an existing holdover clause would require that after the
termination of the Lease, the Tenant would pay the Landlord rent at two times the rate
payable if they remain in the space. Furthermore, due to economic conditions and the
resulting availability of more favorable terms, the Landlord has been put on notice that the
City would not be interested in a new lease with the current term.
The Fire Department's Administration and Prevention offices will be relocated to the City-
owned buifdinglocated at 1701 Meridian Avenue until the permanentfire station building has
been completely renovated, which is not projected to be completed for at least another two
Commission Memorandum -Fire Department New Lease
December 9, 2009
Page 2 of 2
years. While the Fire Department's Administration and Prevention offices will be
accommodated in the City-owned building, the existing space in 1701 Meridian Avenue
requires modifications and improvements, which are projected to commence within sixty
days, which are not expected to be completed until approximately May 31, 2010. Therefore,
staff has discussed options with the existing landlord and has communicated the City's
interest in retaining the existing 8,300 sf of space at 1680 Meridian Avenue under new and
more favorable terms on a short-term basis.
The proposed short-term lease will commence February 1, 2010, and will be written in a
form acceptable to the City Attorney upon Landlord's acceptance of the proposed terms. As
of December 3, 2009, the City's proposal was to modify the rent payments from the existing
$31/sf plus operating expenses, to the more comparable market rent of $25/sf gross. If
accepted, this represents a savings to the City of $6,614.50 per month for a minimum of four
months, effective February 1, 2010, through May 31, 2010. If approved and if necessary,
the proposed terms may be extended monthly for an additional four months, through
September 30, 2010. If terms are approved, the Short-Term Lease Agreement will govern
the continued use of the 8,300 square feet of space by the Fire Department's Administration
and Prevention offices at 1680 Meridian Avenue. The funding for the lease term has been
appropriated in the FY 2009/10 budget. As such, no additional funding is required; in fact,
potential savings maybe realized should the proposed terms be accepted. While we believe
that the Landlord is receptive to the new terms, in no event, would the City agree to terms
less favorable than those in the current lease.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the Resolution
approving aShort-Term Lease Agreement between the City and Meridian Center LLC, for
approximately 8,300 square feet of space located at 1680 Meridian Avenue for market rent,
at an amount not to exceed the current payments of $23,906.17 per month.
JMG/HF/AP
T:\AGENDA\2009\Dec 09\consent\Fire Dept New Lease MEM.doc
EXHIBIT A
® MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
Jorge M. Gonzalez, Ciy Manager
Tel: 305-673-7010, Fax: 305-673-7782
December 3, 2009
WSG Development Company
Attn: Mark Burgin
400 Arthur Godfrey Road
Suite 200
Miami Beach, FL 33140
Re: Proposed Terms for Short-Term Lease Agreement by and between
MERIDIAN CENTER, LLC, a Florida limited liability company, and
CITY OF MIAMI BEACH, a Florida municipal corporation
Premises: The Meridian Center, Units 202, 203 and 204
Located at 1680 Meridian Avenue, Miami Beach
Dear Mr. Burgin:
This letter serves to confirm the telephone conversation between David Oremland, Project Manager
at WSG, and Anna Parekh, the City's Director of Real Estate, Housing 8~ Community Development,
during which the City's interest in continuing to occupy the referenced space under new terms was
expressed.
As has been discussed, the existing lease for use of the referenced space by the Fire Department
in the subject space expires on January 31, 2010. The City has notified your office that it will not
continue to occupy space under the terms of the existing lease beyond its expiration date.
However, because the Fire Department is expected to relocate to the City-owned building at 1701
Meridian Avenue, and that space is not yet available, it is feasible for the Fire Department to remain
in the existing location at 1680 Meridian Avenue until the improvements to the new location are
complete, currently projected to occur by May 31, 2010. Therefore, we propose the following terms
for aShort-Term Lease Agreement:
LANDLORD: Meridian Center, LLC
TENANT: City of Miami Beach
LOCATION; The Meridian Center, Units 202, 203, and 204
1680 Meridian Center
Miami Beach, FL 33139
PREMISES: Approximately 8,300 sf.
i
TERM: ~ Four (4) months with up to four (4) monthly extensions, for a
maximum term of eight (8) months
COMMENCEMENT DATE: February 1, 2010
RENT: $17,291.67 per month. This is the equivalent of $25.00 per square
foot gross payable in equal monthly installments.
USE: Premises will be used as general office space.
December 3, 2009
WSG Management Company
Page 2 of 2
MAINTENANCE:
TAXES:
INSURANCE:
ELECTRICAL COSTS:
Landlord shall maintain common areas, roof and structural integrity of
the premises. Tenant shall keep the leased premises in good condition
and repair in all other respects.
Landlord shall be responsible.
Landlord shall be responsible.
Landlord shall be responsible.
This draft proposal will be presented to the City Commission for its consideration and approval at the
December 9, 2009, City Commission meeting. If the Landlord and the City Commission are in agreement
with the proposed terms outlined in this letter, Tenant will prepare a definitive Short-Term Lease
Agreement containing the understandings as set forth above and other such terms and conditions as may
be requested by one or both of the parties. Only if both parties sign such definitive Short-Term Lease
Agreement shall there exist any binding contract or obligations between the parties.
Sincerely,
Jorge M. Gonzalez
City Manager
JMG/HF
T/December 9, 2009/Consent: Fire Dept New Lease Terms.doc
Copy Sent Via Electronic Mail to: dorelmandna.wsadevelooment.net
Copies to: Raul Aguila, Deputy City Attorney
Hilda Fernandez, Assistant City Manager
Anna Parekh, Director, Office of Real Estate, Housing & Community Development
Eric Yuhr, Fire Chief
We are committed to providing excellent public service and sale-y to all who live, ewrk, and ploy in our vibrant, tropical, historic communiy.
.2oo9- aTato
FIRST AMENDMENT TO LEASE AGREEMENT
This First Amendment to Lease Agreement is entered as of this day of
January, 2010, by and between MERIDIAN CENTER, LLC, a Florida limited
liability company (the "Landlord") and the CITY OF MIAMI BEACH, FLORIDA a
Florida municipal corporation (the "Tenant")
WITNESSETH:
WHEREAS Landlord and Tenant entered into that certain Lease Agreement
dated January 2, 2007 (the "Lease") pursuant to which Landlord leased to Tenant
and Tenant leased from Landlord that certain premises known as Units 202, 203, and
204 located at 1680 Meridian Avenue, Miami Beach, Florida 33139 (the "Premises")
and
WHEREAS, the term of the Lease expires by its terms on January 31, 2010
and the Landlord and Tenant wish to extend the term pursuant to the terms and
conditions set forth herein
NOW THEREFORE, in consideration of the mutual promises contained herein,
and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows.
1 Recitals. The above recitals are true and correct and are incorporated
herein as if set forth in full
2 Status of Lease. Landlord and Tenant acknowledge that as of the
date hereof, the Lease is in good standing with, to their knowledge, no existing
defaults thereunder
3 Extension of Term. The term of the Lease shall be extended an
additional six (6) months commencing on February 1, 2010 and continuing through
and including July 31, 2010 (the "Extension Term") Thereafter, the term of the
Lease shall continue on a month-to-month basis not to exceed two (2) months (the
"Month-Tn- nn Term") During the Month -To -Month Term, the Lease may be
terminated by either party upon the delivery of thirty (30) days' written notice to the
other party
4 Rent. On the first day of each month during the Extension Term and
the Month -To -Month Term, Tenant shall pay to Landlord monthly fixed payments of
rent and other items in the amounts set forth in Exhibit "A" attached hereto and
made a part hereof. Landlord and Tenant acknowledge and agree that the amounts
set forth in Exhibit "A" as "Base Rent" are "gross" rent payments Accordingly,
Tenant shall have no obligation during the Extension Term and the Month -To -Month
Term to pay to Landlord any proportionate share of Operating Expenses pursuant to
Section 3 2 of the Lease
1
5 Premises. Tenant accepts the Premises in its as -is existing condition for
the Extension Term and the Month -To -Month Term and agrees that Landlord shall
have obligation to make any repairs or renovations to the Premises in connection
therewith.
6 Holdover. Section 35 1 is hereby deleted in its entirety
7 Lease Ratified and Reaffirmed. Except as modified hereby, the terms
of the Lease are ratified and reaffirmed by the parties hereto and remain unchanged
and in full force and effect for the Extension Term and the Month -To -Month Term
IN WITNESS WHEREOF, this First Amendment to Lease Agreement is entered
into as of the date first appearing above
Witnesses
Print Name
Print Name -
Robert Parcher, City Clerk
LANDLORD.
MERIDIAN CENTER, LLC, a Florida limited
liability company
By WSG Lincoln, LLC, a Florida limited
liability company, its Manager
By:
Name
Title
TENANT
CITY OF MIAMI BEACH, FLORIDA, a
Florida municipal corporation
2
By La II�:I,Sit
Deede Weithorn Vice -Mayor
APPROVED AS TO
FORM & LANGUAGE
a FOR EXECUTION
Attornet I\ K., Date
Extension Term
Month -to -Month Term
Exhibit "A"
City of Miami Beach Rent Schedule
8 300 Sa Ft
Rent (PSF)
Monthly Rent 1
Dates 1
2/1/20181 7/31/201 326 00
8111201 I 09/30/20101 327 oci
F IRHCDISALLfECVN\SALLWSSE111680 Meridian Fire Dept\Fire Dept Lease Amendment.FlNAL revdoc
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517.983 331
318.675.001