2010-27419 Reso2010-27419 i
RESOLUTION NO. '~
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 RUBIN & BICKMAN,
.PLLC, FOR USE OF APPROXIMATELY 1,518 SQUARE FEET OF CITY-
OWNED PROPERTY, LOCATED AT 1130 WASHINGTON AVENUE, 4TH
FLOOR, MIAMI BEACH, FLORIDA; SAID LEASE HAVING AN INITIAL
TERM OF .THREE YEARS AND TWENTY ONE DAYS, 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, Rubin & Bickman, PLLC, has expressed interest in leasing office
space on the 4th Floor of the Building; and
WHEREAS, the City and Tenant have negotiated the proposed Lease Agreement,
said proposed Lease Agreement having an initial term of three (3) years and twenty one
(21) days, commencing June 10, 2010 and ending June 30, 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 May 12, 2010, pursuant to Resolution No. 20010-27395, 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 June 9,
2010, for second reading and final approval of the Lease Agreement; and
WHEREAS, said public hearing was held on June 9, 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 Rubin & Bickman, PLLC,
for use of approximately 1,518 square feet of City-owned property, located at 1130
Washington Avenue, 4t" Floor, Miami Beach., Florida; said Lease having an initial term of
three years and twenty one days, 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 9t" day of June, 2010.
ATTEST:
Robert Parcher, CITY CLERK
Matti Herrera ower, MAYOR
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F:\RHCD\$ALL\ECON\$ALL\ASSET\OLDCITY\Rubin & Rickman\RUBIN & BICKMAN Lease Agreement.2nd Reading.RES.doc
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APPROVED AS TO
FORM & LANGUAGE ~_
.~ 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 City
and Rubin &Bickman, PLLC, for use of 1,518 SF ofCity-owned property located at 1130 Washington Avenue, 4'h Floor, for a
term of three years and twenty one days, with two additional three year renewal terms.
l(ey 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 Cit Commission a rove the lease a reement?
Item Summa /Recommendation:
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 at competitive market rates. The City ahd Rubin &Bickman have
negotiated a proposed lease agreement for use of office space at Historic City Hall with the following terms:
• Spuare Footage: 1,518 per updated 2009 City survey;
• Term: Three years and twenty one days with two additional three year renewal terms;
• Rent: $22.50 PSF, $34,155:00 annually;
o Base Rent: $14,861.22 annually, payable monthly @ $1,238.43, with 3% annual increase;
o Additional Rent: $19,293.78 annually, payable monthly @ $1,607.82 to offset City's operating expenses and
insurance costs;
• Securi~r Deposit: Prior to execution of the Lease, the Tenant will furnish the City a Security Deposit in the sum of
$5,692.50 (equal to two months of Rent and Additional Rent costs).
A prior appraisal found comparable per square foot (psf) rents in the nearby area at approximately $25 psf. However, in light
of current economic conditions, the Commission has previously approved comparable psf rents for other tenants in the
Building.
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 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 May 12, 2010, pursuant to Resolution No. 20010-27395, the Mayor and. City Commission approved the Lease Agreement
on first reading; waived by 5/7ms vote, the competitive bidding and appraisal requirements; and set the public hearing on June
9, 2010, for second reading and final approval of the Lease Agreement. Subsequently, on May 20,' 2010, the F&CPC
discussed the ro osed lease a reement and recommended its a royal.
Adviso Board Recommendation:
Finance & Cit ide Pro•ects Committee, October 21, 2008, March 10, 2009, and Ma 20' 2010.
Financial Information:
Source of Funds: Amount Account
n/a 1 n/a
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Anna Parekh, extension 7193
Sign-Offs:
De nt Director Assis a it Mana er Cit Mana er
AP
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m MIAMIBEACH
City of Miami Beath, 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: June 9, 2010 S 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 ROBIN 8~ BICKMAN, PLLG, FOR USE OF
APPROXIMATELY 1,518 SQUARE FEET OFCITY-OWNED PROPERTY, LOCATED AT
1130 WASHINGTON AVENUE, 4T" .FLOOR, MIAMI BEACH, FLORIDA; SAID LEASE
HAVING AN INITIAL TERM OF THREE YEARS AND TWENTY ONE DAYS, 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
square feet, 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 the Administration's recommendation that the 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/oi- 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 marketed the location using typical real estate marketing tools. However, based on the
fluctuations of the 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
Commission Memorandum
Rubin &Bickman
June 9, 2010
Page 2 of 4
revised appraisal provided on July 7, 2009, to reflect 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 8th Floor penthouse set at
$30 PSF. The highest and best use for the entire building was deemed to be "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..
On April 16, 2010, Koniver Stern Group, the City's contracted real estate broker, presented the City
with a Letter of Intent (LOI) on behalf of Rubin & Bickman, a South Florida law firm, who expressed
an interest in the 4th Floor that is currently vacant and available. Koniver Stern recommended that
the City consider the proposed lease terms based on the City's ability to secure a viable tenant
during this economic time, and at a competitive PSF rate. This rate reflects the location of the floor
at a lower level with limited views.
The Administration proceeded to negotiate a proposed lease agreement for City Commission
approval. A summary of the proposed lease terms are as follows:
TENANT: Rubin &Bickman, PLLC, a Florida limited liability company.
DEMISED PREMISES: 1;518 SF on the 4th Floor of Historic City Hall, located at 1130 Washington
Avenue.
TERM: Initial term of three (3) years and twenty one (21) days, with two (2) additional
three (3) year renewal options, at the City's sole discretion.
LEASE COMMENCEMENT DATE: June 10, 2010.
RENT COMMENCEMENT DATE: October 1, 2010.
RENT:. $22.50 PSF; $34,155.00 annually;
BASE RENT:. $14,861.22 annually, payable in monthly installments of
$1,238.43. 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: $19,293.78 annually, payable in monthly installments
of $1,607.82. 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 four (4) 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 $5,692.50 (equal to two months Rent and
Additional Rent costs).
USES: The Demised Premises shall be used by the Tenant as office for providing
legal services. The Demised Premises shall be open a minimum of five days
a week (Monday-Friday) from 9:OOAM to 5:OOPM.
Commission Memorandum
Rubin & Bickman
June 9, 2010
Page 3 of 4
IMPROVEMENTS: No significant improvement and/or build-out are anticipated.
INSURANCE: Tenant shall comply with the following insurance requirements throughout
the Term.:
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-Stop.
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:
Commission Memorandum
Rubin &Bickman
June 9, 2010
Page 4 of 4
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.
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 May 12, 2010, the Mayor and City Commission adopted Resolution No. 2010-27395, approving
the proposed lease agreement on first reading; waived by 5/7ms vote, the competitive bidding and
appraisal requirements; and set a public hearing on June 9, 2010, for second reading (and final
approval) of the lease agreement. Additionally, the City Commission referred the proposed lease
agreement to the F&CPC for discussion. Subsequently, on May 20, 2010, the F&CPC discussed the
proposed agreement and recommended that the City Commission approve the lease.
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
approve on second and final reading, following a duly noticed public hearing, the lease agreement
between the City and Rubin &Bickman, PLLC, for use of the 4tn Floor with the proposed terms, as
delineated herein.
Should the City Commission approve this lease, and the lease for use of the remaining portion of the
3~d Floor, which is also on this agenda, only the Stn Floor of Historic City Hall will remain available for
lease.
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