2010-27330 ResoRESOLUTION NO.
2010-27330
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 CITYAND IMMUNITY, INC., FOR
USE OF APPROXIMATELY 3,036 SQUARE FEET OF CITY-0WNED
PROPERTY, LOCATED AT 1130 WASHINGTON AVENUE, 7r" AND 8r"
FLOOR, MIAMI BEACH, FLORIDA; SAID LEASE HAVING AN INITIAL
TERM OF THREE YEARS, WITH TWO ADDITIONAL THREE YEAR
RENEWAL TERMS, AT THE CITY'S SOLE DISCRETION; AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE LEASE AGREEMENT
WHEREAS, on October 21, 2008, the Finance & Citywide Projects Committee
(F&CPC) acknowledged that the City-owned Historic City Hall building (the "Building") was
not needed for City offices and instructed the Administration to advertise, market and
negotiate leases for available spaces within the Building; and
WHEREAS, Immunity, Inc. has expressed interest in leasing office space on the 7`n
and 8`n floors of the Building; and
WHEREAS, on November 16, 2009, the F&CPC approved the proposed lease,
said proposed lease having an initial term of three (3) years, commencing June 1, 2010
and ending May 31, 2013, with two (2) additional three (3) year renewal terms, at the City's
sole discretion; 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 January 13, 2010, pursuant to Resolution No. 20010-27307, the
Mayor and City Commission approved the Lease Agreement on first reading; waived by
5/7 vote, the competitive bidding and appraisal requirements; and set the public hearing
on February 3, 2010, for second reading and final approval of the Lease Agreement; and
WHEREAS, said public hearing was held on February 3, 2010.
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 Immunity, Inc., for use of
approximately 3,036 square feet of City-owned property, located at 1130 Washington
Avenue, 7th and 8th Floor, Miami Beach, Florida; said Lease having an initial term of three
years, with two additional three year renewal terms, at the City's sole discretion; authorizing
the Mayor and City Clerk to execute the Lease Agreement.
PASSED and ADOPTED this 3`~ day of February, 2010.
ATTEST:
Pte. ~
Robert Parcher, CITY CLERK atti Herrera Bower, MAYOR
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APPROVED AS TO
FORM & LANGUAGE
8 FOR EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving, on second reading, following a duly noticed public hearing, a Lease Agreement
between the Cit~ and Immunity, Inc. for use of 3, 036 SF ofCity-owned property located at 1130 Washington
Avenue, 7th & 8 Floors, for a term of three years, with two additional three year renewal terms.
Ke Intended Outcome Su orted:
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.
SECOND READING & PUBLIC HEARING
On October 21, 2008, the Finance & Citywide Projects Committee (F&CPC) acknowledged that the City-
owned Historic City Hall building (the "Building") was not needed for City offices and instructed the
Administration to advertise, market and negotiate leases for available spaces within the building. The
Administration has been complying with the F&CPC's instructions for over a year. On November 16, 2009,
the FBCPC recommended approval of the proposed lease with the following terms:
• Souare Footage: 3,036 per updated 2009 City survey;
• Term: Three years with lwo additional three year renewal terms;
• Rent: $25.30 PSF = $76,810.801year
• Base Rent: $38,223.24 annually, payable monthly @ $3,185.27, with 3% annual increase;
• Additional Rent: $38,587.56 annually, payable monthly ~ $3,215.63 to offset City's operating
expenses and insurance costs;
• Security Deposit: Prior to execution of the Lease, the Tenant will furnish the City a Security Deposit
in the sum of $12,801.80 (equal to two months of Rent and Additional Rent costs).
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 thatthe public interest
would be served by waiving such conditions. At the March 10, 2009 meeting of the F&CPC, the Committee
determined that it was in the public's best interest to forgo competitive bidding and staff should proceed in
leasing available space in the Building according to market rates and industry standards.
On January 13, 2010, pursuant to Resolution No. 20010-27307, the Mayor and City Commission approved
the Lease Agreement on first reading; waived by 5/7'hs vote, the competitive bidding and appraisal
requirements; and set the public hearing on February 3, 2010, for second reading and final approval of the
Financial Information:
Source of Funds: Amount Account
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Cify of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florido 33139, www.miamibeachH.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: February 3, 2010 SE ND 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 IMMUNITY, INC., FOR USE OF APPROXIMATELY 3,036
SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1130 WASHINGTON
AVENUE, 7T" AND 8T" FLOOR, MIAMI BEACH, FLORIDA; SAID LEASE HAVING AN
INITIAL TERM OF THREE YEARS, WITH TWO ADDITIONAL THREE YEAR RENEWAL
TERMS, 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
Increase resident satisfaction with the level of services and facilities.
BACKGROUND
At the October 21, 2008 meeting of the Finance & Citywide Projects Committee (F&CPC), and
subsequently at their meeting of March 10, 2009, and following a comprehensive review of the
City's office space use, it was determined that Historic City Hall would not be fully re-occupied by
City offices, resulting in leasable space availability for non-City uses. The Committee directed the
Administration to advertise and market the available leasable space, a total of approximately 14,194
sq. ft., including the ground floor, but exclusive of the second floor space utilized by the Clerks of the
Courts.
At the meeting, the Committee also approved theAdministration's recommendation thatthe process
of developing lease agreements based on supply and demand be utilized for the leasing and
occupancy of these available spaces, and that any future commercial leases (including renewals
and/or extensions) for use of space at Historic City Hall be handled as it is in the private sector and
not through a competitive bid process, with the administration ensuring that market rates are
negotiated and operating expenses included. All leases would continue to require City Commission
approval per City Code.
ANALYSIS
Staff has marketed the location using typical real estate marketing tools. However, based on the
fluctuation of the current real estate market in this economic environment, the City requested an
appraisal, which was performed by Bondarenko & Associates, Inc. to determine the market rent
value; with a revised appraisal provided on July 7, 2009 to reflect further changing conditions. The
resulting market rental rates of $25-$30 PSF were determined to be based on gross rent, full
service. The $25 PSF market rent for floors 1 - 7 was set as an average, with a premium for the 8'"
Floor penthouse set at $30 PSF. The highest and best use for the entire building was deemed to be
Commission Memorandum
Immunity, Inc.
February 3,2010
Page 2 of 4
"office", with the notation that the ground floor potential use as retail commercial is not practical due
to the restrictions of the historic designation of the building.
At the November 16, 2009, F&CPC meeting, staff presented a lease for consideration involving the
7`" and 8`" floors of the building with Immunity, Inc. Immunity, Inc. is a computer security software
company founded in 2002 that is currently occupying office at 1247 Alton Road in Miami Beach. As
part of the City's due diligence process, the Administration contacted Immunity's current Landlord
and determined Immunity to be a tenant in good standing.
The F&CPC recommended approval of the proposed rate of $25.30 PSF for 3,036 SF of office
space. In accordance with the F&CPC's recommendations, staff has proceeded to negotiate a lease
agreement for City Commission approval. A summary of the proposed lease terms are as follows:
TENANT: Immunity, Inc., a Florida corporation.
DEMISED PREMISES: 3,036 SF on the 7`" and 8`" Floors of Historic City Hall, located at 1130
Washington Avenue.
TERM: Initial term of three (3) years, with two (2) additional three (3) year renewal
options, at the City's sole discretion.
COMMENCEMENT DATE: June 1, 2010.
RENT: $25.30 PSF; $76,810.80/year
BASE RENT: $38,223.24 annually, payable in monthly installments of
$3,185.27. Base Rent (excludes Operating Expenses, Property Taxes and
Insurance) shall be increased annually, on the anniversary of the
Commencement Date, in increments of three (3%) percent per year.
ADDITIONAL RENT: $38,587.56 annually, payable in monthly installments of
$3,215.63. Any increase in Operating Expenses and Insurance will result in
an increase to Tenant's proportionate share.
PARKING: Tenant may request, from the City's Parking Department, the use of no more
than eight (8) parking spaces. Rates for said spaces are subject to change,
and are currently $70 per month plus applicable sales tax.
SECURITY DEPOSIT: Prior to the execution of the Lease, Tenant will furnish the City with a
Security Deposit in the sum of $12,801.80 (equal to two months Rent and
Additional Rent costs).
USES: The Demised Premises shall be used by the Tenant as office for developing
and providing information security technologies and services. The Demised
Premises shall be open a minimum of five days a week (Monday-Friday) from
9:OOAM to 5:OOPM.
IMPROVEMENTS: No significant improvement and/or build-out is anticipated.
INSURANCE: Tenant shall comply with the following insurance requirements throughout
the Term:
Commission Memorandum
Immunity, Inc.
February 3, 2010
Page 3 of 4
Comprehensive General Liability in the minimum amount of $1,000,000 per
occurrence for bodily injury and property damage. The City of Miami Beach
must be named as additional insured parties on this policy, subject to
adjustment for inflation.
Workers Compensation and Employers Liability coverage in accordance with
Florida statutory requirements.
All-Risks property and casualty insurance, written at a minimum of 80% of
replacement cost value and with replacement cost endorsement, covering all
of Tenant's personal property in the Demised Premises (including, without
limitation, inventory, trade fixtures, floor coverings, furniture and other
property removable by Tenant under the provisions of this Agreement) and
all leasehold improvements installed in the Demised Premises by or on
behalf of Tenant, subject to adjustment for inflation.
PROPERTY TAXES: Property taxes for Property Tax Year 2009 are estimated at Zero Dollars
{$0.00). Notwithstanding, the City makes no warranty or representation, that
the Historic City Hall building, the Land, and/or the proposed lease premises
will not be subject to ad valorem (or other) taxes in subsequent years. In the
event Miami-Dade County assesses the property, Tenant shall pay its
proportionate share of the property tax bill. Any property tax payment shall be
payable by Tenant immediately upon receipt of notice from the City.
Tax Stoo.
Notwithstanding the preceding, in the event the property is subject to Miami-
Dade County property taxes, the City shall be responsible for payment of the
Property Tax Payment up to an amount not to exceed Three Dollars ($3.00}
per square foot (Tax Stop Amount) with Tenant to be responsible for
anything in excess of that amount. Tenant shall promptly reimburse the City
for its portion of the Property Tax Payment (if any) upon receipt of the City's
invoice for same.
UTILITIES: Tenant retains sole responsibility for all utilities (not included as part of
Operating Expenses) including janitorial, internet and telephone services.
MAINTENANCE
AND REPAIR: Tenant shall be responsible for day-to-day maintenance and repairs of the
Demised Premises, including, without limitation, all fixtures, appurtenances,
equipment and furnishings.
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.
Commission Memorandum
Immunity, Inc.
February 3, 2010
Page 4 of 4
Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements,
by 5/7`ha 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.
A Planning Department analysis finds that the use of this area as office space is consistent with the
land use designation contained in the Comprehensive Plan.
On January 13, 2010, pursuant to Resolution No. 20010-27307, the Mayor and City Commission
approved the Lease Agreement on first reading; waived by 5/7`"'vote, the competitive bidding and
appraisal requirements; and set the public hearing on February 3, 2010, for second reading and final
approval of the Lease Agreement.
The proposed lease terms are within the range of comparable spaces in the area, and reflect the
current economic reality. This tenant's use is consistent with the uses envisioned for Historic City
Hall.
Based on the aforementioned, the Administration recommends that the Mayor and City Commission
hereby approve on second and final reading, following a duly noticed public hearing, the Lease
Agreement between the City and Immunity, Inc.
JMG/HMF/AP/RR
T:WGENDA~20101February 3V2egulaNMMUNITY Leasa Agreement.2nd Reading.MEM.doc
® MIAMIBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY given that second readings and public hearings will be held by the Mayor
and City Commission of the City of Miami Beach, Florida, in the Commission Chambers,
3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, on Wednesday,
February 3, 2010, to consider the following:
X 10:10 a.m.
to consider Resolution Approving On Second Reading, Public Hearing, A Lease Agreement
Between, The City And Immunity, Inc., For Use Of Approximately 3,036 Square Feet Of
-City-Owned Property, Located At 1130 Washington Avenue, 7th And 8th Floors, Miami Beach,
Florida; Said Lease Having An Initial Term Of Three ears, W ith Two Additional Three Year Renewal
Terms, At The City's Sole Discretion.
Inquiries may be directed to the Office of Real Estate, Housing and Community Development at
.(305) 673-7260.
10:15 a.m.
Resolution Approving 'On second Reading, public hearing A Lease Agreement Between The
City And Paul A. Sack, For Use Of Approximately 660 Square Feet Of City-Owned Property,
Located At 1130 Washington Avenue; 3rd Floor West, Miami Beach, Florida; Said Lease Having
An Initial Term Of Three Years, With Two Additional Three Year Renewal Terms, At The City's Sole
Discretion.
INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent,
or to express their views in writing addressed to the City Commission, c/o the City Clerk, 1700
Convention Center Drive, 1st Floor, City Hall, Miami Beach, Florida 33139. This meeting may be
continued and under such circumstances additional legal notice would not be provided.
Robert E. Parcher, City Clerk
City of Miami Beach
Pursuant to. Section 286.0105, Fla. Stat., the City hereby advises the public that: if a person
decides to appeal any decision made by the City Commission with respect to any matter
considered at its meeting or its hearing, such person must ensure that a verbatim record of
the proceedings is made, which record includes the testimony and `evidence upbn which the
appeal is to be based. This notice does not constitute consent by the City for the introduction or
admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or
appeals not otherwise allowed by law.
To request this material in accessible format, sign language interpreters, information on access
for persons with disabilities, and/or any accommodation to review any document or participate in
any city-sponsored proceeding, please contact (305) 604-2489 (voice), (305) 673-7218.(TTY) five
days in advance to initiate your request. TTY users may also call 711 (Florida Relay Service).
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