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2010-27489 Reso~~ ~ ~ I ~ 2010-27489 i RESOLUTION NO:~ A RESOLUTIC CITY OF MIa LEASE EXTE CLERK TO E; OF MIAMI BE LANDLORD, SQUARE FE! AVENUE, SUI USED AS 'A DEPARTMENT COMMENCIN( 31, 2011 N OF THE MAYOR AND CITY COMMISSION OF THE IAI BEACH, FLORIDA, APPROVING A TWO MONTH ISION AND AUTHORIZING THE -MAYOR AND CITY ECUTE A LEASE AGREEMENT BETWEEN THE CITY 4CH, AS TENANT, AND MERIDIAN MIAMI, LLC, AS =0R USE OF APPROXIMATELY 5,311 RENTABLE T OF PROPERTY, LOCATED AT 1680 MERIDIAN 'ES 201 AND 203, MIAMI BEACH, FLORIDA, TO BE )MINISTRATIVE OFFICES FOR THE CITY'S FIRE ;SAID LEASE HAVING A TERM OF NINE (9) MONTHS, ON DECEMBER 1, 2010, AND ENDING ON AUGUST WHEREAS, one December 10, 2003, the Mayor and City Commission adopted Resolution No. 2003-25439, awarding a contract to the firm of Jasco Construction, for the construction of a new Fire Station No. 2, and the renovation of the existing historic building, into administrative offices for the City of Miami Beach Fire Department; and WHEREAS, said construction and renovation necessitated the relocation of the Fire Department; and WHEREAS, on ~ October 11, 2006, the Mayor and City Commission adopted Resolution No. 2006-26344, approving a lease agreement between the City and Meridian Center, LLC, for the Fire Department s use of a portion of the property at 1680 Meridian Avenue, for a three year term; said term (the Lease Agreement), commencing on February 1, 2007, and terminating on January 31, 2010; and WHEREAS, on December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009-27280, extending the Lease Agreement for an additional eight (8) month term, said term commencing on February 1, 2010, and ending on September 30, 201.0; and WHEREAS, the Fire Department is programmed to be relocated into the 1701 Meridian Avenue building until such time as the construction and renovation of Fire Station No. 2 are completed; and WHEREAS, the spaces programmed for the Fire Department's use in the 1701 Meridian Avenue building require modifications and improvements; and WHEREAS, in the interim, the Administration has negotiated a two (2) month extension to the cui Meridian Miami, LLC square feet at 1680 commencing on Dea :nt lease and a new Lease Agreement (attached hereto) with for. the Fire Department's use of approximately 5,311 rentable eridian Avenue, Suites 201 and 203, for a nine (9) month term, Aber 1, 2010, and ending on August 31, 2011. 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 a two month lease extension and authorize the Mayor and City Clerk to execute a new Lease Agreement between the City of Miami Beach and Meridian Miami, LLC, for use of approximately 5,311 rentable square feet of property, located at 1680 Meridian, Suites 201 and 203, Miami Beach,. Florida, to be used by the City for administrative offices for the City s Fire Department, for a nine month term, commencing on December 1,.2010, and ending on August 31, 2011. PASSED and ATTEST: OPTED this 15t" day of September, 2010. .~ ~~~-c~ Robert Parcher, J M G/H M F/A P/rl r F:\RHCD\$ALL\ECON\$ALL\AS ITY CLERK Matti Her era Bower, MAYO -1680 Meridian Fire DeptWleridian Miami Lease.RES.doc APPROVED AST E FORM & LANGU N g +0 e COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving a two month extension and new lease agreement between the City, as Tenant, and Meridian Miami, LLC, as Landlord, for use of property located at 1680 Meridian Avenue, to be used as Administrative offices for the Fire Department. Ke Intended Outcome Su oated: Maximize efficient delivery of services. Supporting Data (Surveys, Environmental Scan, etc.): Approximately 75% of residents~and 68% of businesses rated Miami Beach city government as excellent or good in meeting their needs and expectations. Issue• Should the Citv Commission approve the extension and new lease agreement? Item Summa /Recommendation: The City is moving forward with the construction and renovation of Fire Station No. 2. That work necessitated the relocation of the City's Fire Department personnel. Due to a lack of available space in City buildings at the time, in October 2006, the City Commission approved a three year lease agreement between the City and Meridian Center, LLC, for the Fire Department's use as office space for the Administrative and Fire Prevention staff. This lease was extended for an additional eight months in December 2009, and is scheduled to expire on September 30, 2010. Subsequently, space has become available at the 777 building. In evaluating the current timeline for completion of the Fire Station 2 improvements, it is beneficial to move the Fire Administration and Prevention staff into the City-owned building. The Landlord has agreed to permit the City to remain in the leased premises on a month-to-month basis for the months of October and November 2010, under the current terms and Rent payment schedule (8,300 SF @ $18,675.00 monthly). Prior to the end of November 2010, they Fire Department will relocate a portion of its staff to the 2"d floor of the 777 Building, thus reducing the space required to 5,311 SF. The balance of the Fire Department's staffwill remain in the 1680 Meridian Avenue property until such time as 4th floor space at the 777 Building becomes available and modifications and improvements are completed next year. Both of the proposed City spaces require some modifications and improvements prior to occupancy. by the Fire Department. A two month extension and a new lease agreement between the City and the new property owner, Meridian Miami, LLC, is being proposed to accommodate this renovation and moving schedule. The proposed lease terms are as follows: ~ Lease Extension New Lease S uare Foota a 8,300 SF 5,311 SF Term Two; months; 10/1 /10 - 11 /30/10 Nine months; 12/1 /10 - 8/31 /11 Rent $27 !PSF; $18,675/mo $27 PSF; $11,949.75/mo Securi De osit N/A ~ N/A The Administration recommends that the Mayor and City Commission adopt the Resolution approving the two month extension and lease agreement allowing for the Fire Department s continued use of office space at 1680 Meridian Avenue. Adviso Board Recommendatio n/a ~ Financial Information: ~ Source of Funds: Amount Account n/a 1 $144!897.75 From proposed FY 2010/11 budget; Account No. 011.1210.000323 Financial Impact Sum City Clerk's Office Legislative Tracking: Anna Parekh, extension 7193 I Sign-Offs• Anna Parekh, Department Director I Hilda M. erns ez, Assistant City Manager Jorge M. zal ,City Manager AP I HF JMG T:\AGENDA\2010\September 15\RegularWleridian Miami Lease.SUM.doc -°• ~~ ~~~ u A "E118®A. OTEM _~ _ D~tTE ~-'~, `~~ "~ ® i - IA IBEACH M M City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: May Matti Herrera Bower and Members of the City Commission I~ z i Mana er FROM: Jor e M Gon a e, C ty g September 15, 2010 A RESOLUTIiI BEACH, FLC AUTHORIZING BETWEEN TF LANDLORD, PROPERTY, BEACH, FLO FIRE DEPAF COMMENCIN ADMINISTRATION R Adopt the Resolution. BACKGROUND The planned constructic building into administrati Department's Adminstr~ owned property availabl~ market rent was approvE owned building. Therel Resolution No. 2006-26. LLC, for the Fire Departr a three year term which In light of the current sche of the Finance & Citywide the City's office space u~ Administration and Fire P of the forth (4th) floor of Building). The 2"d floor ar the relocation of the Fire IN OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI RIDA, APPROVING A TWO MONTH LEASE EXTENSION AND ~ THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT E CITY OF MIAMI BEACH, AS TENANT,.AND MERIDIAN MIAMI, LLC, AS 'OR USE OF APPROXIMATELY 5,311 RENTABLE SQUARE FEET OF .OCATED AT 1680 MERIDIAN AVENUE, SUITES 201. AND 203, MIAMI tIDA, TO BE USED AS ADMINISTRATIVE OFFICES FOR THE CITY'S TMENT; SAID LEASE HAVING A TERM OF NINE (9) MONTHS, 3 ON DECEMBER 1, 2010, AND ENDING ON AUGUST 31, 2011 ~ of a new Fire Station No. 2, and the renovation of the existing historic offices for the City's Fire Department, required the relocation of the Fire on and Fire Prevention offices. At that time, there was no vacant City- that could accommodate the Fire Department's needs, and comparable I to be paid in order to house the Fire Department's offices in a privately- re, on October 11, 2006, the Mayor and City Commission adopted I.4, approving a Lease Agreement between the City and Meridian Center, ant's use of a portion of the property located at 1680 Meridian Avenue, for ommenced on February 1, 2007, and terminated on January 31, 2010. iule for completion of the Station 2 project, at the March 10, 2009 meeting Projects Committee (F&CPC), and following a comprehensive review of ;, the Committee agreed with City staff's recommendation that the Fire evention offices should be relocated to the second (2nd) floor and a portion :he City-owned property located at 1701 Meridian Avenue (a.k.a 777 1 portion of the 4th floor require modifications and improvements prior to )epartment into that space. The commencement of th'e renovations was delayed and necessitated an extension to the Lease Agreement. Subsequently, on December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009-27280, extending the Lease Agreement for an additional eight (8) month term, commencing on February 1, 2010, and scheduled to end on September 30, 2010. City staff negotiated new terms at the time that reduced the City's monthly rent cost. ANALYSIS On January 13, 2010, the funding for the renovatio ~yor and City Commission adopted Resolution 2010-27298, approving of the 2nd floor and a portion of the 4th floor of the 777 Building. Commission Memorandu Meridian Miami, LLC September 15, 2010 Page 2 of 2 Renovation work has begun on the 2"d floor of the Building but it is not anticipated to be completed prior to the September 30, 2010 expiration of the current, extended lease term. The Landlord has agreed to permit the City to remain in the leased premises on amonth-to-month basis for the months of October and November 2010, under the current terms and Rent payment schedule (8300 SF @ $18,675.00 monthly). Prior to the end of November 2010, the Fire Department will relocate a portion of its staff to the 2"d floor of the 777 Building, thus reducing the space required to be rented to 5,311 SF. The balance of the Fire Department's staff will remain in the 1680 Meridian Avenue property until s `~ ch time as the 4t".floor modifications and improvements are completed and they are able to occupy that space. This is expected to occur within the new lease term. The Administration has (proceeded to negotiate an extension of the current lease, and a proposed lease agreement for City Commission approval. The terms of the two month extension, on a month- to-month basis remain the same as approved by the City Commission on December 9, 2010. The proposed lease terms for the.. space commencing on December 1, 2010 are as follows: TENANT: City of Miami Beach, a Florida municipal corporation. LANDLORD: Meridian Miami, LLC, a Florida limited liability company. DEMISED PREMISES: 5,311 rentable SF located at 1680 Meridian Avenue, Suites 201 and 203. TERM: nine (9) month term. I LEASE COMMENCEMENT DATE: December 1, 2010 LEASE EXPIRATION DATE: August 31, 2011 RENT: $27.00 PSF; $11,949.75 monthly. Rent includes Additional Rent (i.e. operating expenses, property taxes and insurance costs) and electric. SECURITY DEPOSIT: None required. USES:. The Demised Premises shall be used by the Tenant as an office location for the (City of Miami Beach Fire Department. The Demised Premises shall be generally open for Tenant's use Monday-Friday, .from 6:OOAM to 7:OOPM. CONCLUSION The Administration recor approving the proposed fi and Meridian Miami, LLC, Fire Department Administ available for move-in. JMG/HMF/AP/RR ends that the Mayor and City Commission adopt the. Resolution month lease extension. and new Lease Agreement between the City office space located at 1680 Meridian Avenue to accommodate our on and Fire Prevention office until such time as City-owned space is T:\AGENDA\2010\September 15\Regular\Meridian Miami Lease.MEM.doc