2010-27486 Reso2010-27486
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 DAVID A. WRUBEL,
CPA, PA, FOR USE OF APPROXIMATELY 1,518 SQUARE FEET OFCITY-
OWNED PROPERTY, LOCATED AT 1130 WASHINGTON AVENUE, .5TH
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 EXECUTFC~ ~~1~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, David L. Wrubel, CPA,
space on the 5 Floor of the Building.; and
PA, has expressed interest in leasing office
WHEREAS, the City and Tenant have negotiated the proposed Lease Agreement,
said proposed Lease Agreement having an initial term of three (3) years, commencing
October 1, 2010 and ending September 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 July 14, 2010, pursuant to Resolution No. 2010-27452, 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 15, 2010, for second reading and final approval of the Lease Agreement; and
WHEREAS, saidpublic hearing was held on September 15, 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 David L. Wrubel,-CPA,
PA, for use of approximately 1,518 square feet of City-owned property, located at 1130
Washington Avenue; 5th Floor, Miami Beach, Florida for 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 15th day of September, 2010.
ATTEST:
~~ .
Robert Parcher CITY C ERK atti Herrera B er, MAYOR
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F:\RHCD\$ALL\ECON\$ALLWSSET\OLDCITY\David L. Wrubel\Wrubel Lease Agreement.2nd Reading.RES.doc
APPROVED AS TO
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Condensed Title:
COMMISSION ITEM SUMMARY
A Resolution approving, on second reading, following a duly noticed public hearing, a lease agreement between the City and
David L.,Wrubel, CPA, PA, for use of 1,518 SF ofCity-owned property located at 1130 Washington Avenue, 5'h Floor, 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 rou would recommend Miami Beach as a lace to do business.
Issue•
Should the Ci 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 subject space, which is the only
remaining vacant space in the ;Building, was never completely renovated by the City and requires extensive tenant
improvements. Subsequently, the City and David L. Wrubel have negotiated a proposed lease for renovation and use of
office space at Historic City Hall, ,1130 Washington Avenue, with the following terms:
• Square Footage: 1,518 per updated 2009 survey;
• Term: Three years, with two additional three year renewal terms;
• Rent: $23.30 PSF, $35,369.40 annually;
o Base Rent: $16,075.62 annually, payable monthly @ $1,339.63, 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; ;
• Security Deposit: Prior to .execution of the lease, the Tenant will furnish the City a Security Deposit in the sum of
$5,894.90 (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 a $23.30 PSF rent for the 6 Floor. A tenant credit
is provided in light of the tenant improvements that will be required for this unfinished space.
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 July 14, 2010, pursuant to Resolution No. 2010-27452, 'the Mayor and City Commission approved the lease agreement
on first reading; waived by 5/7cns vote, the competitive bidding and appraisal requirements; and set the public hearing on
September 15, 2010, for second reading and final approval of the lease agreement. Subsequently, on July 29,' 2010, the
F&CPC discussed the ro osed lease a reement and recommended its a royal.
Adviso Board Recommendation:
Finance & Ci ide Projects Committee, October 21, 2008, March 10, 2009, and Jul 29, 2010.
Financial Information:
Source of Funds: Amount Account
n/a 1 n/a
Financial fm act Summa
City Clerk's Office Legislative Tracking:
~ Anna Parekh, extension 7193 ~ ~
Sign-Offs•
Ann kh, De artment Director Hilda M
rn dez, Assistant Ci Mana er Jor e M Gonzalez Ci er
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T:WGENDA12010\September 15\Regular\Wrubel Lease Agreement.2nd Reading.SUM.doc
AG A ITEM
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DATE ~ ~ I y
m MIAMI BEACH
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 C' Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 15, 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 DAVID A. WRUBEL, CPA, PA, FOR USE OF
APPROXIMATELY 1,518 SQUARE FEET OFCITY-OWNED PROPERTY, LOCATED AT
1130 WASHINGTON AVENUE, 5T" 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 EXECUTED 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 Clerk
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/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 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
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
~.
Commission Memorandum
David L. Wrubel, CPA, PA
September 15, 2010
Page 2 of 4
that the ground floor potential use as retail commercial is not practical due to the restrictions of the
historic designation of~the building.
On May 25, 2010, Koniver Stern Group, the City's contracted real estate broker, presented the City
with a Letter of Intent (LOI) on behalf of David L. Wrubel, CPA, PA., a Miami Beach certified public
accounting firm, who expressed an interest in the 5th 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. Because
the subject space, which is the sole remaining vacant space in the building, was never renovated by
the City and requires extensive tenant improvements, the Tenant is also investing a minimum of
$35,370 in tenant improvements (in exchange for a rent credit). Property Management has
estimated that it would cost the City approximately $37,600 to build out the 5th Floor. Staff
recommended that thebuild-out of the space be handled and permitted by the prospective tenant.
The Administration proceeded to negotiate a proposed lease agreement for City Commission
approval. A summary of the proposed lease terms are as follows:
TENANT: .David L. Wrubel, CPA, PA, a Florida corporation
DEMISED PREMISES: 1;,518 SF on the 5th Floor 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.
LEASE COMMENCEMENT DATE: October 1, 2010.
RENT COMMENCEMENT DATE: October 1, 2011.
RENT: $23.30 PSF; $35,369.40 annually;
BASE RENT: $16,075.62 annually, payable in monthly installments of
$1,339.63. Base Rent shall be increased annually, commencing on the third
anniversary of the Commencement Date of the Lease and on each
anniversary Commencement Date thereafter, 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 $5,894.90 (equal to two months Rent and
Additional Rent costs).
USES: The. Demised Premises shall be used by the Tenant as office for providing
accounting, consulting and income tax preparation services. The Demised
Commission Memorandum
David L. Wrubel, CPA, PA~
September 15, 2010
Page 3 of 4
'Premises shall be open a minimum of five days a week (Monday-Friday) from
9:OOAM to S:OOPM.
IMPROVEMENTS: .Tenant agrees to make certain improvement to the Demised Premises in the
;minimum amount of $35,370.00 (an amount equal to, and in exchange for,
one year's Rent).
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 Stog.
Notwithstanding the preceding, in the event the property issubject toMiami-
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
fors 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.
Commission Memorandum
David L. Wrubel, CPA, PA
September 15, 2010
Page 4 of 4
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 renewal option periods, requires the following:
,I
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 5/7thS vote of the Mayorand City Commission, upon a finding by the Mayorand 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 July 14, 2010, the Mayorand City Commission adopted Resolution No. 2010-27452, 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 September 15, 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 July 29, 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 David L. Wrubel, CPA, PA, for use of the 5th Floor with the proposed terms, as
delineated herein.
Should the City Commission approve this Lease, Historic City Hall will be fully occupied with no
space remaining available for lease.
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R€TAIL REAL ESTATE & BRA(
July 8, 2010
Re: 1130 Washington Avenue office space for David Wrubel
Dear Hilda: ~
Koniver Stern endorses .the City of Miami Beach moving forward with the above referenced
lease. The reasons are: 1) the space cannot be expanded or contracted which .limits the number
of tenants that the space is appropriate for; 2) the tenant is willing to .pay for their required
;tenant specific build-out since no cash tenant improvement allowance is offered and the space
currently .needs to be built out; .3) the ofFce space is Class ~B/C space and currently the general
office .market is not robust. We are recommending, the 5"' floor space to be leased at $23.30
based upon the space having a more desirable view that the lower floors. We are also
recommending a 12 month- rent .abatement based upon the City's estimate of $37,600 to
complete the space. We -have been showing the space since January and have been negotiating
this proposal for three months. Additionally, the tenant is currently .leasing space in Miami
Beach.
Based on all these factors, Koniver Stern recommends that the City lease the office space at
1130 Washington Avenue to .David Wrubel.
- Thank you.
,~,;
F
Lyle B. Stern
1665 Washington Avenue, Penthouse
Miami Beach, Florida 33139;
T (305) 532-6100 F (305) X532-6101
wwH-.koniversterngroup.com i
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°! CITY ®0= i11111i41V11 BEACH
~ NOTICE OF .PUBLIC HEARINGS .
~ NOTICE IS HEREBY,, even that second readin and ublic hearin will be held b the M
~ g 9s P 9s y ayor and City Commission of the City 4f Miami Beach, Florida, in the
Q Commission Chambers, 3rd floor, City Ha11,1700 Convention Cerrter Drive, Miami Beach, Florida, on Wednesday, September 152010, to censiderthe following:
~ .25 a.m. I, ,
p i .Approving On Second Reading, Public Hearing; A Lease Agreement Between The City And David A. Wrubel, CPA,,F~A, For Use Of Approximately 1,51 B Square
cn ,Feet Of City-Owned Property, Located At 1130 Washington Avenue, 5th Floor, Miami Beach, florida; Said Lease Having An initial Term Of Three Years, With Two
~ ' ~ A.dditionalThree Year Renewal Terms, At The City's Sole Discretion.
p
.~ I_ Inquiries may be direlcted to the Real Estate, Housing i3< Community Development Department (305) 673- 7260.
.10:30 a.m. ~ ,
W ~ Approving On Second Reading, Public Hearing, A Lease Agreement Between The City And Leonardo Salon, Inc.; For Use Of Approximatey 1,326.78 Square Feet
Of City-Owned Property, Located At 1701 Meridian Avenue, Untt 1 (A/K!A 76517th Street), Miami Beach, Florida; Said Lease Having An initia) Term Of Four Years
And'364 Days, With One Additonal Five Year Renewal Term, At The City's Sole Discretion.
!V ~ Inquiries may be directed to the Real Estate, Housing & Community Development Department (305) 673- 7260.
I
10:35 a:m. i .
Approving On Secondi~Reading, Public Hearing, A lease Agreement Between The City And Jon Knrtchik; For Use Of Approximatety 1,802.89 Square Feet Of City-
Owned Property, Located At 1701 Meridian Avenue, Unit 2 (A/i(/A 76717th Street), Miami Beach,-Florida; Said Lease.Having An Initial Term Of Pour Years And
3fi4 Days, With One Additional Five Year Renewal Term, At The City's Sole Discretion.
i.
Inquiries may be directed to the Real Estate, Housing & Community Developmentd Departmertt (305) 673- 7260.
INTERESTED PARTIES, are imtted'to appear at this.meeting, or be represented by an agem, or to express their views iq writing addressed iD the City Commission;
Go the Ctty Clerk, 1700 Convention Center Drive,lst Floor, City Hall, Miami Beach, Florida 33139: Copies of these ordinances are available for public inspection
during normal business hours in the City Clerk's Office, 1700 Convention Cer-ter Drive l st Floor, City Hall, and Miami Beach, Florida 33139 or via the City's web
. site at www.miamibeachfl.gov.Thls meeting may be coAtinued and under such circumstances additional legal notice would not be provided. ~.
"Robert E Parches, City Clerk ` .
City of Miami Beach.
, .
.Pursuant to Section 286.0105; Fla. Stat, the City hereby advises the public thatrf a perann decides to appeal any decision made by the City Commissiari
with respect to any matter considered at tts•meeting or its hearing, such person must ensure that a vert~atim record of the proceedings is made, which record
includes the testimony and evidence Upon 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 tt authorize challenges or appeals not otherwise allowed by law.
To request this material in accessible format, sign language irrterpreters, irdormation on access for persons with disabilities, and/or any accommodation to
review any document or participate in any city-sponsored proceeding, please comact (305) 604-2489 (voice), (30573-7218(TTY) five days in advance to initiate
your request rn users 'I ay also call 711 (Florida Relay Service).
Ad N614