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2013-28117 Resolution RESOLUTION NO. 2013-28117 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH STATE REPRESENTATIVE DAVID RICHARDSON FOR LEASE OF OFFICE SPACE AT THE CITY OWNED BUILDING LOCATED AT 1701 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, TO OPERATE AND MAINTAIN A DISTRICT OFFICE; SAID LEASE HAVING AN INITIAL TERM OF TWO (2) YEARS COMMENCING RETROACTIVELY ON DECEMBER 20, 2012, AND EXPIRING ON NOVEMBER 30, 20149 WITH THREE (3) EXTENSION OPTIONS, AT THE CITY'S DISCRETION, FOR A TERM OF TWO (2) YEARS EACH; AND FURTHER WAIVING, BY 5/7THS VOTE,, THE COMPETITIVE BIDDING REQUIREMENT, AS PERMITTED UNDER SECTION 82-39(A) OF THE CITY CODE WHEREAS, on August 2012, David Richardson was elected by the voters to represent District 113 in the Florida House of Representatives, and he was sworn into office on November 20, 2012; and WHEREAS, members of the Florida Legislature are each provided with a small budget to operate an office in the district that they represent; and WHEREAS, the Miami Beach Visitor and Convention Authority (MBVCA), currently occupies approximately 541 square feet of space on the fourth floor of 1701 Meridian Avenue, but intends to vacate that space; and WHEREAS, Representative Richardson has determined that the current MBVCA space meets his needs to serve as his new district office; and WHEREAS, the proposed lease is for an initial term of two (2) years, commencing retroactively on December 20, 2012, and expiring on November 30, 2014, with three (3) three extension options, at the City's discretion, for two (2) years each; and WHEREAS, the proposed lease was discussed at the December 20, 2012 Finance and Citywide Projects Committee meeting, and the Committee recommended that the City enter into a Lease Agreement with State Representative David Richardson. NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission, following a duly advertised public hearing, hereby approve and authorize the Mayor and City Clerk to execute a Lease Agreement with State Representative David Richardson for lease of office space at the City owned building located at 1701 Meridian Avenue, Miami Beach, Florida, to operate and maintain a district office; said Lease having an initial term of two (2) years commencing retroactively on December 20, 2012, and expiring on November 30, 2014, with three (3) extension options, at the City's discretion, for a term of two (2) years each; and further waiving, by 5/7ths vote, the competitive bidding requirement, as permitted under Section 82-39(a) of the City Code. PASSED and ADOPTED this J044e r 2013. ATTEST: ��•'' Rafael Gr nado, CI LE R : �NCORP ORATE . errera ower, M Y RAPPROVED AS TO 40 FOR - M &LANGUAGE •••• •••Qj &FOR CUTION T:\AGENDA\2013\January 16\Rep Richardso MS »13)d8cx, Ci Attorney Date WORK AREA 425 SQ. FT. ELEVATOR LOBBY CL. OFFICE 130 SQ. FL CORRIDOR BREAK / ROSNVI / �� \WAIT�G LL /WAITW AREA RECEPTION/ AREA WORK AREA /�FFICJ� (��ZS FFI E \ WAITING / / ��I%� 14,9 AREA A AQF( SQFt TENANT / OFFICE / �ONFfRENCE / ROOryI / / OFFICE OFFICE QEFICE PLAN ® SCALE: 1/8"= P-0' 1�l S M1 W W R �R tY p FI �tI1Ct moos meomoF r< Cttmta auwmo OFFlCEB ■ tc cum aam tttr0 tr. ■ a. _ M1 tatm Vmw town m 'n. tt{'Qtn ® at 14 CL m Yqm wrr OFFER CORRIDOR am 0"ar �+ @ nn10EJx�// Ym.OEWRItpt,R Flt1 ITORM am= am am pFt4 F � rm.( ooDnnoD reru aFet aFCC emet maa atn axor aFw FOURTH FLOOR PLAN SCALE:NTS vno.►ecr Trrb 4th Floor Office Space IR 777 Building MIAMIBEACH 1701 Meridian Avenue ATTACHMENT 1 COMMISSION ITEM SUMMARY Condensed Title: Resolution Waiving The Competitive Bidding Requirement And Approving And Authorizing The Mayor And City Clerk To Execute Two Separate Lease Agreements Between 1) The City And State Representative David Richardson For The Use Of Office Space Located At 1701 Meridian Avenue, And 2) The City And Commissioner Bruno Barreiro For The Use Of Ground Floor Space Located At City Hall Key Intended Outcome Supported: Not Applicable Supporting Data (Surveys, Environmental Scan, etc.): Not Applicable Issue: Shall the City enter into two separate Lease Agreements with 1) State Representative David Richardson and 2 Commissioner Bruno Barreiro for the use of offices ace? Item Summa /Recommendation: David Richardson was elected to represent District 113 in the Florida House of Representatives and was sworn into office on November 20, 2102. Representative Richardson currently occupies Suite 402B, consisting of 149 square feet, and has requested to lease Suite 402A, consisting of 541 square feet, once it is vacated by the current tenant. Commissioner Richardson would vacate Suite 402B. The Lease would be for an initial term of two (2) years with three (3) extension options for two (2) years each. In an open market, Suites 402A/402B could command approximately $35 per square foot. It is recommended, due to the benefit of providing space for Miami Beach residents to meet with their elected officials, the City enter into a Lease Agreement with Representative Richardson for $6.90 per square foot, which covers the City's common area maintenance costs and insurance expense. Commissioner Bruno Barreiro was first elected in 1998 and has been re-elected for subsequent terms to represent District 5, which includes portions of the City of Miami Beach. In approximately 2001, Commissioner Barreiro moved his office to a 412 square foot space on the ground floor of City Hall Commissioner Barreiro was most recently re-elected in November 2012 and wishes to continue to occupy City space in order to continue serving Miami Beach residents with their constituent needs. The 412 square foot space could command at least$35 per square foot (or$14,420 annually). The City does not currently charge rent for this space. It is recommended, due to the benefit of providing space for Miami Beach residents to meet with their elected officials, the City enter into a Lease Agreement for one dollar per year. At its December 12, 2012 meeting, the Finance & Citywide Projects Committee discussed the matter and recommended approving both Lease Agreements with the proposed terms. Advisory Board Recommendation: Finance & Citywide Projects Committee: December 20, 2012 Financial Information: Source of Amount Account Funds: n/a Financial Impact Summary: City Clerk's Office Legislative Tracking: Anna Parekh, ext. 6471 Sign-Offs. De artm D rector I Acting Assistahf/CAy MAn er Z I Interim City Ma r AP MA KGB KGB/MAS/AP/MM TAAGENDA\2013\January 16\Rep Richardson&Comm Barreiro Leases SUM(1-4-13).docx tOIAMIBEACH AGENDA ITEM R?A I� -- - DATE MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti H. Bower and Members of the City Comm' sion FROM: Kathie Brooks, Interim City Manager DATE: January 16, 2013 SUBJECT: A RESOLUTION WAIVING, BY 5/7THS VOTE, THE COMPETITVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND APPROVING A LEASE AGREEMENT WITH STATE REPRESENTATIVE DAVID RICHARDSON TO LEASE OFFICE SPACE LOCATED AT 1701 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, FOR AN INITIAL TERM OF TWO YEARS RETROACTIVELY COMMENCING ON DECEMBER 20, 2012, AND EXPIRING NOVEMBER 30, 20149 WITH THREE (3) EXTENSION OPTIONS FOR A PERIOD OF TWO (2) YEARS EACH; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT SUBJECT TO FINAL REVIEW BY THE CITY MANAGER AND FORM APPROVAL BY THE CITY ATTORNEY A RESOLUTION WAIVING, BY 5/7THS VOTE, THE COMPETITVE BIDDING SUCH REQUIREMENT, CH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND APPROVING A LEASE AGREEMENT WITH COMMISSIONER BRUNO BARREIRO AND/OR THE MIAMI-DADE BOARD OF COUNTY COMMISSIONERS TO LEASE 412 SQUARE FEET OF GROUND FLOOR OFFICE SPACE LOCATED AT 1700 CONVENTION CENTER DRIVE, MIAMI BEACH, FLORIDA, FOR AN INITIAL TERM OF FORTY SIX (46) MONTHS COMMENCING ON FEBRUARY 1, 2013, AND EXPIRING NOVEMBER 30, 20169 WITH ONE (1) EXTENSION OPTION FOR A PERIOD OF FOUR (4) YEARS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE AGREEMENT SUBJECT TO FINAL REVIEW BY THE CITY MANAGER AND FORM APPROVAL BY THE CITY ATTORNEY ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND State Representative David Richardson On August 2012, David Richardson was elected by the voters to represent District 113 in the Florida House of Representatives, and he was sworn into office on November 20, 2012. Members of the Florida Legislature are each provided with a small budget to operate an office in the district that they represent. The Miami Beach Visitor and Convention Authority (MBVCA), which currently occupies approximately 541 square feet of space on the fourth floor of 1701 Meridian Avenue (hereinafter referred to as Suite 402A), intends to vacate the space in order to occupy a larger vacant space on the east side of the same floor. Representative Richardson moved into an adjacent 149 square feet of space (hereinafter referred to as Suite 402B) on a temporary basis on December Commission Memorandum—Representative Richardson&Commissioner Barreiro Leases January 16, 2013 Page 2 of 3 20, 2012, which was reviousl used part-time on Tuesday mornings by staff from the office of P Y Congresswoman Ileana Ros-Lehtinen. Both spaces are depicted on the floor plan which is attached hereto and marked "Attachment 1." Representative Richardson has requested to lease a larger space and has determined that the current MBVCA space meets his needs to serve as his district office. The MBVCA is in the process of initiating the renovations for its future space and the MBVCA's contractor is currently in the permitting phase. In the meantime, the temporary use of Suite 402B allows Representative Richardson's office to begin to conduct its operations, install equipment, print business cards, and more importantly provides a space for constituents to meet with him. Throughout Florida there is precedent for the provision of affordable municipal office space to State Representatives. For example, the City of Vero Beach leases office space to Representative Debbie Mayfield for $185 per month; Representative Martin Kiar utilizes office space at Parkland City Hall; Senator Alan Hays leases space in Deland City Hall for $200 per month. Additionally, Congressman Alcee Hastings rents space at Delray Beach City Hall for $300 per month. Florida House District 113 includes all of the City of Miami Beach, North Bay Village, and part of Downtown Miami and East Little Havana. It is in the City's best interest to have Representative Richardson's district office centrally located and accessible to the majority of his constituents, and to the residents of Miami Beach. The City has provided low cost or free office space to other governmental entities in the past, such as County Commissioner Bruno Barreiro, the Miami-Dade Clerk of Courts, and Congresswoman Ileana Ros-Lehtinen's staff. Miami-Dade County Commissioner Bruno Barreiro The City will also work with County Commissioner Bruno Barreiro to enter into a lease agreement for the use of 412 square feet of space on the ground floor of City Hall. It is in the City's best interests to memorialize the terms of the use of City-owned space for the benefit of our residents. Commissioner Barreiro was first elected as a Miami-Dade County Commissioner in 1998 and has been re-elected for subsequent terms to represent District 5, which includes portions of the City of Miami Beach. Soon after being first elected, Commissioner Barreiro began using City space known as the Answer Center (located between the main entrance elevators in City Hall and currently occupied by Community Services) to meet with City residents and attend to constituents' needs in a convenient and accessible government location. In approximately 2001, Commissioner Barreiro moved his City Hall office to the 412 square foot space on the ground floor of City Hall. Commissioner Barreiro was most recently re-elected in November 2012 and wishes to continue to occupy City space in order to continue serving Miami Beach residents with their constituent needs. The space occupied by Commissioner Barreiro's office is depicted on the floor plan which is attached hereto and marked "Attachment 2." ANALYSIS Suite 402B (149 square feet temporarily occupied by Representative Richardson) and Suite 402A (541 square foot space to be occupied by Representative Richardson) could command, in an open market, approximately $35/sf gross. The City currently leases adjacent office space at $37.61/sf to a physician on the 4th floor. That rent (which started at $35/sf and escalated during the exercised renewal options) includes $6.00/sf for operational expenses (utilities and common area maintenance expenses) and $.90/sf for insurance. Cleaning and trash removal within the Commission Memorandum—Representative Richardson&Commissioner Barreiro Leases January 16, 2013 Page 3 of 3 office/leased space is not included in the rent. The office space in the 1701 Meridian Avenue building is not assessed real estate taxes by Miami-Dade County. At fair market rent, Suite 402A (541 square feet) could lease for approximately $18,935 per year and Suite 402B (149 square feet) could lease for$5,215 per year. The 412 square foot space occupied by Commissioner Barreiro could command a similar or higher rent per square foot than the office space at 1701 Meridian Avenue because it is ground- floor space and is located in the City Hall building. However, the limited size may be a factor. The City does not currently charge rent for this space. The maintenance for this office is included in the City's janitorial contract and includes trash removal and vacuuming services. While we do not charge Common Area Maintenance or insurance charges to Commissioner Barreiro, our estimated CAM costs would be $6.90/sf, which is what we are charging the physician in the 1701 Meridian Avenue leased space. In an open market, Commissioner Barreiro's space could lease for approximately $14,420 per year. CONCLUSION While the City could command fair market rents for the use of the two spaces, the current use of ground floor space by Commissioner Barreiro, and the proposed use of office space on the 4th floor by Representative Richardson facilitate enhanced public service to constituents. The City's contribution in making City space available for Miami Beach residents to meet with their County and State elected officials outweighs the benefits of collecting fair market rent for these properties. At the December 20, 2012 Finance and Citywide Projects Committee ("F&CPC") meeting, the Administration proposed the terms set forth above. The F&CPC agreed with the importance of providing space for Miami Beach residents to meet with their elected officials, as well as the terms proposed by the Administration. Therefore, the Administration recommends in favor of approving: • The City enter into a Lease Agreement with Representative David Richardson (and/or the Florida House of Representatives) for the temporary use of 149 square feet and the future use of 541 square feet of space located on the 4th floor of 1701 Meridian Avenue for $6.90/sf. The rent for the 149 square foot space will be $86 monthly; and the rent for the 541 square foot space will be $311 monthly. This rent represents the amount necessary to cover the City's Common Area Maintenance costs and insurance expenses. • The City enter into a Lease Agreement with Commissioner Bruno Barreiro (and/or the Miami-Dade Board of County Commissioners) for the use of 412 square feet of space currently occupied in the ground floor of City Hall, 1700 Convention Center Drive, for one dollar per year. The one dollar represents legal consideration and is intended to honor the previously agreed upon terms for the use of the space. 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O U CU cn A Cl) SA cn l°L Ca ++ L CZ 'i CU E H 'cn cn a- N C a) CU m CA Ca Q cl] Q T U � U1 .0 G� C t� cn N Ca — W ° co d a� a� w Q L E U E _ °' ti CZ r CC J Caa 0 U) L) Cu > Lu E B .SQ ire_ ? o � .> p CA 07 V CV d d O V Q 3 O Q H Z Q a� I c2 013—v2 r1l LEASE AGREEMENT THIS LEASE AGREEMENT, made this day of 2013, by and between the CITY OF MIAMI BEACH, a Florida munici a corp ation, (hereinafter referred to as "City" or "Landlord"), and STATE REPRESENTATIVE DAVID RICHARDS®N, (hereinafter referred to as "Tenant"). 1. Demised Premises. The City, in consideration of the rentals hereinafter reserved to be paid and of the covenants, conditions and agreements to be kept and performed by the Tenant, hereby leases, lets and demises to the Tenant, and Tenant hereby leases and hires from the City, those certain premises hereinafter referred to as the "Demised Premises" and more fully described as follows: 1.1 Approximately 149 square feet of City-owned property, located at 1701 Meridian Avenue (the "Building"), Suite 402B, Miami Beach, Florida, 33139, and as more specifically delineated in "Exhibit 1", attached hereto and incorporated herein. 1.2 Upon written notice from the City, and subject to availability, Tenant shall relocate to approximately 541 square feet of City-owned property, located at 1701 Meridian Avenue (the "Building"), Suite 402A, Miami Beach, Florida, 33139, and as more specifically delineated in "Exhibit 2", attached hereto and incorporated herein. Upon relocation, all references in this Lease Agreement to the "Demised Premises" shall refer to the space referred to in this Subsection 1.2 (and as more specifically delineated in "Exhibit 2" hereof). 2. Term. 2.1 Tenant shall be entitled to have and to hold the Demised Premises for an initial term of one (1) year and 346 days, commencing retroactively as of the 20th day of December, 2012 (the "Commencement Date"), and ending on the 30th day of November, 2014. For purposes of this Agreement, and including, without limitation, Subsection 2.2 herein, a "contract year" shall be defined as that certain one year period commencing on the 1st day of December, and ending on the 30th day of November. 2.2 Provided Tenant is in good standing and free from default(s) under Section 18 hereof, and upon written notice from Tenant, which notice shall be submitted to the City Manager no earlier than one hundred twenty (120) days, but in any case no later than sixty (60) days prior to the expiration of the initial term, this Lease may be extended for three (3) additional two (2) year renewal terms. Any extension, if approved, shall be memorialized in writing and signed by the parties hereto (with the City 1 hereby designating the City Manager as the individual authorized to execute such extensions on its behalf). In the event that the City Manager determines, in his sole discretion, not to extend or renew this Lease Agreement (upon expiration of the initial term or any renewal term), the City Manager shall notify Tenant of same in writing, which notice shall be provided to Tenant within fifteen (15) business days of the City Manager's receipt of Tenant's written notice. 3. Rent. 3.1 Intentionally Omitted. 3.2 Additional Rent: Tenant shall pay the following Additional Rent as provided below: 3.2.1 Operating Expenses: Commencing on the Commencement Date, Tenant shall pay Seventy Four Dollars and 50/100 ($74.50) per month, for its proportionate share of"Operating Expenses". Commencing on the first day of the month following Tenant's relocation to Suite 402A, as stipulated in Subsection 1.2 of this Lease Agreement, Tenant shall pay Two Hundred Seventy Dollars and 50/100 ($270.50) per month, for its proportionate share of "Operating Expenses". "Operating Expenses" shall mean the following costs and expenses incurred in operating, repairing, and maintaining the Common Facilities (as hereinafter defined) and shall include, without limitation, electric service, water service to the Building, sewer service to the Building, trash removal from the Building, costs incurred for gardening and landscaping, repairing and maintaining elevator(s), painting, janitorial services (except for areas within the Demised Premises), lighting, cleaning, striping, policing, removing garbage and other refuse and trash, removing ice and snow, repairing and maintaining sprinkler systems, water pipes, air- conditioning systems, temperature control systems, and security systems, fire alarm repair and maintenance and other equipment in the common areas and the exterior and structural portions of the Building, paving and repairing, patching and maintaining the parking areas and walkways, and cleaning adjacent areas, management fees and the City's employment expenses to employees furnishing and rendering any services to the common areas, together with an additional administration charge equal to fifteen percent (15%) of all other expenses included in the annual common area expenses, provided by the City for the common or joint use and/or benefit of the occupants of the Building, their employees, agents, servants, customers and other invitees. 2 'P r "Common Facilities" shall mean all Building areas, spaces, equipment, as well as certain services, available for use by or for the benefit of Tenant and/or its employees, agents, servants, volunteers, customers, guests and/or invitees. Tenant agrees and understands that the costs incurred for Operating Expenses may increase or decrease and, as such, Tenant's pro-rata share of Operating Expenses shall increase or decrease accordingly. 3.2.2 Property Taxes: The Property Tax Payment shall be payable by Tenant, in accordance with Section 11 herein. 3.2.3 Insurance: The Additional Rent shall also include Tenant's pro-rata share toward estimated insurance costs incurred to insure the whole of the Building, payable in monthly installments of Eleven Dollars and 18/100 ($11.18). This insurance coverage is in addition to the insurance required pursuant to Section 10, which shall be obtained at Tenant's sole expense and responsibility. Commencing on the first day of the month following Tenant's relocation to Suite 402A, as stipulated in Section 1 of this Lease Agreement, Tenant's pro-rata share toward estimated insurance costs incurred to insure the whole of the Building, shall be payable in monthly installments of Forty Dollars and 58/100 ($40.58). 3.3 Sales Taxes: Concurrent with the payment of the Additional Rent as provide herein, Tenant shall also pay any and all sums for all applicable tax(es), including without limitation, sales and use taxes and Property Taxes, imposed, levied or assessed against the Demised Premises, or any other charge or payment required by any governmental authority having jurisdiction there over, even though the taxing statute or ordinance may purport to impose such tax against the City. 3.4 Enforcement. Tenant agrees to pay the Additional Rent, and any other amounts as may be due and payable by Tenant under this Agreement, at the time and in the manner provided herein, and should said rents and/or other additional amounts due herein provided, at any time remain due and unpaid for a period of fifteen (15) days after the same shall become due, the City may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately, or the City may pursue any other remedies enforced by law. 3 4. Location for Payments. All rents or other payments due hereunder shall be paid to the City at the following address: City of Miami Beach Revenue Manager 1700 Convention Center Drive, 3rd Floor Miami Beach, Florida 33139 or at such other address as the City may, from time to time, designate in writing. 5. Intentionally Omitted. 6. Intentionally Omitted. 7. Use and Possession of Demised Premises. 7.1 The Demised Premises shall be used by the Tenant solely for the purpose(s) of serving as a district office to conduct administrative duties and to meet with constituents. Said Premises shall be open for operation a minimum of five (5) days a week, with normal hours of operation being as follows: Monday- Friday: 9:00 AM to 5:00 PM Tenant shall not otherwise modify the days or hours of operation without the prior written approval of the City Manager. Nothing herein contained shall be construed to authorize hours contrary to the laws governing such operations. 7.2 It is understood and agreed that the Demised Premises shall be used by the Tenant during the Term of this Agreement only for the above purpose(s)/use(s), and for no other purpose(s) and/or use(s) whatsoever. Tenant will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by law, ordinance or government regulation, or that may be dangerous to life, limb or property. Tenant may not commit (nor permit) waste on the Demised Premises; nor permit the use of the Demised Premises for any illegal purposes; nor commit a nuisance on the Demised Premises. In the event that the Tenant uses the Demised Premises (or otherwise allows the Demised Premises to be used) for any purpose(s) not expressly permitted herein, or permits and/or allows any prohibited use(s) as provided herein, then the City may declare this Agreement in default pursuant to Section 18 or, without notice to Tenant, restrain such improper use by injunction or other legal action. 8. Improvements. 8.1 Tenant accepts the Demised Premises in their present "AS IS" condition and may construct or cause to be constructed, such interior and exterior 4 improvements and maintenance to the Demised Premises, as reasonably necessary for it to carry on its permitted use(s), as set forth in Section 7; provided, however, that any plans for such improvements shall be first submitted to the City Manager for his prior written consent, which consent, if granted at all, shall be at the City Manager's sole and absolute discretion. Additionally, any and all approved improvements shall be made at Tenant's sole expense and responsibility. All permanent (fixed) improvements to the Demised Premises shall remain the property of the City upon termination and/or expiration of this Agreement. Upon termination and/or expiration of this Agreement, all personal property and non-permanent trade fixtures may be removed by the Tenant from the Demised Premises, provided that they can be (and are) removed without damage to the Demised Premises. Tenant will permit no liens to attach to the Demised Premises arising from, connected with, or related to the design and construction of any improvements. Moreover, such construction shall be accomplished through the use of licensed, reputable contractors who are acceptable to the City. Any and all permits and or licenses required for the installation of improvements shall be the sole cost and responsibility of Tenant. 8.2 Notwithstanding Subsection 8.1, upon termination and/or expiration of this Agreement, and at City's sole option and discretion, any or all alterations or additions made by Tenant to or in the Demised Premises shall, upon written demand by the City Manager, be promptly removed by Tenant, at its expense and responsibility, and Tenant further hereby agrees, in such event, to restore the Demised Premises to their original condition prior to the Commencement Date of this Agreement. 8.3 The above requirements for submission of plans and the use of specific contractors shall not apply to improvements (which term, for purposes of this Subsection 8.3 only, shall also include improvements as necessary for Tenant's maintenance and repair of the Demised Premises) which do not exceed Five Hundred ($500.00) Dollars, provided that the work is not structural, and provided that it is permitted by applicable law. 9. City's Right of Entry. 9.1 The City Manager, and/or his authorized representatives, shall have the right to enter upon the Demised Premises at all reasonable times for the purpose of inspecting same; preventing waste; making such repairs as the City may consider necessary; and for the purpose of preventing fire, theft or vandalism. The City agrees that, whenever reasonably possible, it shall use reasonable efforts to provide notice (whether written or verbal), unless the need to enter the Demised Premises is an emergency, as deemed by the City Manager, in his sole discretion, which if not immediately addressed could cause property damage, loss of life or limb, or other injury to persons. Nothing herein shall imply any duty on the part of the City to do any work that under any provisions of this Agreement the 5 Tenant may be required to perform, and the performance thereof by the City shall not constitute a waiver of the Tenant's default. 9.2 If the Tenant shall not be personally present to open and permit entry into the Demised Premises at any time, for any reason, and any entry thereon shall be necessary or permissible, the City Manager, and/or his authorized representatives, may enter the Demised Premises by master key, or may forcibly enter the Demised Premises without rendering the City or such agents liable therefore. 9.3 Tenant shall furnish the City with duplicate keys to all locks including exterior and interior doors prior to (but no later than by) the Commencement Date of this Agreement. Tenant shall not change the locks to the Demised Premises without the prior written consent of the City Manager, and in the event such consent is given, Tenant shall furnish the City with duplicate keys to said locks in advance of their installation. 10. Tenant's Insurance. 10.1 Tenant shall, at its sole expense and responsibility, comply with all insurance requirements of the City. It is agreed by the parties that Tenant shall not occupy the Demised Premises until proof of the following insurance coverages have been reviewed and approved by the City's Risk Manager: 10.1.1 Comprehensive General Liability, in the minimum amount of One Million ($1,000,000) Dollars (subject to adjustment for inflation) per occurrence for bodily injury and property damage. The City of Miami Beach must be named as an additional insured on this policy. 10.1.2 Workers Compensation and Employers Liability coverage in accordance with Florida statutory requirements. 10.1.3 All-Risk property and casualty insurance, written at a minimum of eighty (80%) percent of replacement cost value and with replacement cost endorsement, covering all leasehold improvements installed in the Demised Premises by or on behalf of Tenant and including without limitation 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). 10.2 Proof of these coverages must be provided by submitting original certificates of insurance to the City's Risk Manager and Asset Manager respectively. All policies must provide thirty (30) days written notice of cancellation to both the City's Risk Manager and Asset Manager (to be submitted to the addresses set forth in Section 27 hereof). All insurance 6 policies shall be issued by companies authorized to do business under the laws of the State of Florida and must have a rating of B+:VI or better per A.M. Best's Key Rating Guide, latest edition, and certificates are subject to the approval of the City's Risk Manager. 11. Property Taxes and Assessments. For the purposes of this Section and other provisions of this Agreement: 11.1 The term "Property Taxes" shall mean (i) real estate taxes, assessments, and special assessments of any kind which may be imposed upon the Demised Premises, and (ii) any expenses incurred by the City in obtaining a reduction of any such taxes or assessments. 11.2 The term "Property Tax Year" shall mean the period of twelve (12) calendar months, beginning on January 1St of each year. 11.3 Tenant shall pay, as Additional Rent pursuant to Section 3.2, for such Property Tax Year an amount ("Property Tax Payment") equal to Tenant's pro-rata share of Property Taxes (if any) for such Property Tax Year; said pro-rata share to be determined by the City based upon the ratio of the Demised Premises to the tax lot. If a Property Tax Year ends after the expiration or termination of the term of this Agreement, the Property Tax Payment therefore shall be prorated to correspond to that portion of such Property Tax Year occurring within the term of this Agreement. The Property Tax Payment shall be payable by Tenant immediately upon receipt of notice from the City. A copy of the tax bill(s) or other evidence of such taxes issued by the taxing authorities, together with the City's computation of the Property Tax Payment, will be made available to Tenant once received from the taxing authorities, if requested by Tenant. Tenant shall pay any difference in the amount between the estimated property taxes and the actual property taxes to the City immediately, upon receipt of request for said payment from the City. 12. Assignment and Subletting. Tenant shall not have the right to assign or sublet the Demised Premises, in whole or in part, without the prior written consent of the City Manager, which consent, if granted at all shall be at the City Manager's sole and absolute discretion. Such written consent is not a matter of right and the City is not obligated to give such consent. If granted as provided herein, the making of any assignment or sublease will not release Tenant from any of its obligations under this Agreement. 13. Operation, Maintenance and Repair. 13.1 Tenant shall be solely responsible for the operation, maintenance and repair of the Demised Premises. Tenant shall, at its sole expense and responsibility, maintain the Demised Premises, and all fixtures and appurtenances therein, and shall make all repairs thereto, as and when needed, to preserve them in good working order and condition. Tenant 7 shall be responsible for all interior walls and the interior and exterior of all windows and doors, as well as immediate replacement of any and all plate glass or other glass in the Demised Premises which may become broken, using glass of the same or better quality. The City shall be responsible for the maintenance of the roof, the exterior of the Building, all heating/ventilation/air conditioning (HVAC) equipment servicing the Demised Premises, the structural electrical and plumbing (other than plumbing surrounding any sink(s) and/or toilet(s), including such sink(s) and toilet(s) fixture(s), within the Demised Premises), the common areas and the chilled water supply system. The City shall maintain and/or repair those items that it is responsible for, so as to keep same in proper working condition. 13.2 All damage or injury of any kind to the Demised Premises, and including without limitation its fixtures, glass, appurtenances, and equipment (if any), or to the building fixtures, glass, appurtenances, and equipment, if any, except damage caused by the gross negligence and/or willful misconduct of the City, shall be the sole obligation of Tenant, and shall be repaired, restored or replaced promptly by Tenant, at its sole expense and to the satisfaction of the City. 13.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to or better than the original work or installations and shall be done in good and workmanlike manner. 13.4 If Tenant fails to make such repairs or restorations or replacements, the same may be made by the City, at the expense of Tenant, and all sums spent and expenses incurred by the City shall be collectable by the City and shall be paid by Tenant within three (3) days after submittal of a bill or statement therefore. 13.5 It shall be Tenant's sole obligation and responsibility to insure that any renovations, repairs and/or improvements made by Tenant to the Demised Premises comply with all applicable building codes and life safety codes of governmental authorities having jurisdiction. 13.6 Tenant Responsibilities for Utilities (not included within Operating Expenses). Tenant is solely responsible for, and shall promptly pay when due, all charges and impact fees for any and all utilities for the Demised Premises NOT included as an Operating Expense (pursuant to Subsection 3.2.1). In addition to other rights and remedies hereinafter reserved to the City, upon.the.failure of Tenant to pay for such utility services (as contemplated in this Subsection 13.6) when due, the City may elect, at its sole discretion, to pay same, whereby Tenant agrees to promptly reimburse the City upon demand. 8 In no event, however, shall the City be liable, whether to Tenant or to third parties, for an interruption or failure in the supply of any utilities or services to the Demised Premises. 13.7 TENANT HEREBY ACKNOWLEDGES AND AGREES THAT THE DEMISED PREMISES ARE BEING LEASED IN THEIR PRESENT "AS IS" CONDITION. 14. Governmental Regulations. Tenant covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City governments, and any and all of their departments and bureaus applicable to the Demised Premises, and shall also comply with and fulfill all rules, orders, and regulations for the prevention of fire, all at Tenant's own expense and responsibility. Tenant shall pay all cost, expenses, claims, fines, penalties, and damages that may be imposed because of the failure of Tenant to comply with this Section, and shall indemnify and hold harmless the City from all liability arising from each non-compliance. 15. Liens. Tenant will not permit any mechanics, laborers, or materialman's liens to stand against the Demised Premises or improvements for any labor or materials to Tenant or claimed to have been furnished to Tenant's agents, contractors, or sub-tenants, in connection with work of any character performed or claimed to have performed on said Premises, or improvements by or at the direction or sufferance of the Tenant; provided however, Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Tenant shall give the City reasonable security as may be demanded by the City to insure payment thereof and prevent sale, foreclosure, or forfeiture of the Premises or improvements by reasons of such non-payment. Such security need not exceed one and one half (1%2) times the amount of such lien or such claim of lien. Such security shall be posted by Tenant within ten (10) days of written notice from the City, or Tenant may "bond off' the lien according to statutory procedures. Tenant will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Tenant's own expense. 16. Intentionally Omitted. 17. Condemnation. 17.1 If at any time during the Term of this Agreement (including any renewal term hereunder) all or any part or portion of the Demised Premises is taken,. appropriated, or condemned by reason of Eminent Domain proceedings, then this Agreement shall be terminated as of the date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by 9 reason of this Agreement or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date, and Tenant shall pay any and all rents, additional rents, utility charges, and/or other costs for which it is liable under the terms of this Agreement, up to the date of such taking. 17.2 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the City in any such Eminent Domain proceeding, excepting, however, Tenant shall have the right to claim and recover from the condemning authority, but not from the City, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business by reasons of the condemnation and for or on account of any cost or loss which Tenant might incur in removing Tenant's.furniture and fixtures. 18. Default. 18.1 Default by Tenant: At the City's option, any of the following shall constitute an Event of Default under this Agreement: 18.1.1 The Additional Rent, or any other amounts as may be due and payable by Tenant under this Agreement, or any installment thereof, is not paid promptly when and where due within fifteen (15) days of due date, and Tenant shall not have cured such failure within five (5) days after receipt of written notice from the City specifying such default; 18.1.2 The Demised Premises shall be deserted, abandoned, or vacated; 18.1.3 Tenant shall fail to comply with any material term, provision, condition or covenant contained herein other than the payment of rent and shall not cure such failure within thirty (30) days after the receipt of written notice from the City specifying any such default; or such longer period of time acceptable to the City, at its sole discretion; 18.1.4 Receipt of notice of violation from any governmental authority having jurisdiction dealing with a law, code, regulation, ordinance or the like, which remains uncured for a period of thirty (30) days from its issuance, or such longer period of time as may be acceptable and approved in writing by the City Manager, at his sole discretion; 18.1.5 Any petition is filed by or against Tenant under any section or chapter of the Bankruptcy Act, as amended, which remains pending for more than sixty (60) days, or any other proceedings now or hereafter authorized by the laws of the United States or of any state for the purpose of discharging or extending the time for payment of debts; 10 18.1.6 Tenant shall become insolvent; 18.1.7 Tenant shall make an assignment for benefit of creditors; 18.1.8 A receiver is appointed for Tenant by any court and shall not be dissolved within thirty (30) days thereafter; or 18.1.9 The leasehold interest is levied on under execution. 19. Rights on Default. 19.1 Rights on Default: In the event of any default by Tenant as provided herein, City shall have the option to do any of the following, in addition to and not in limitation of, any other remedy permitted by law or by this Agreement; 19.1.1 Terminate this Agreement, in which event Tenant shall immediately surrender the Demised Premises to the City, but if Tenant shall fail to do so the City may, without further notice, and without prejudice to any other remedy the City may have for possession or arrearages in rent or damages for breach of contract, enter upon the Demised Premises and expel or remove Tenant and its effects in accordance with law, without being liable for prosecution or any claim for damages therefore, and Tenant agrees to indemnify and hold harmless the City for all loss and damage which the City may suffer by reasons of such Agreement termination, whether through inability to re-let the Demised Premises, or otherwise. 19.1.2 Declare the entire amount of the Additional Rent which would become due and payable during the remainder of the term of this Agreement to be due and payable immediately, in which event Tenant agrees to pay the same at once, together with all rents therefore due, at the address of the City, as provided in the Notices section of this Agreement; provided, however, that such payment shall not constitute a penalty, forfeiture, or liquidated damage, but shall merely constitute payment in advance of the rents for the remainder of said term and such payment shall be considered, construed and taken to be a debt provable in bankruptcy or receivership. 19.1.3 Enter the Demised Premises as the agent of Tenant, by force if necessary, without being liable to prosecution or any claim for damages therefore; remove Tenant's property there from; and re-let the Demised Premises, or portions thereof, for such terms and upon such conditions which the City deems, in its sole discretion, desirable, and to receive the rents therefore, and Tenant shall pay the City any deficiency that may arise by reason of such re-letting, on demand at any time and from time to time at the office of the City; and for the purpose of re-letting, the City may (i) make any 11 repairs, changes, alterations or additions in or to said Demised Premises that may be necessary or convenient; (ii) pay all costs and expenses therefore from rents resulting from re-letting; and (iii) Tenant shall pay the City any deficiency as aforesaid. 19.1.4 Take possession of any personal property owned by Tenant on said Demised Premises and sell the same at public or private sale, and apply same to the payment of rent due, holding Tenant liable for the deficiency, if any. 19.1.5 It is expressly agreed and understood by and between the parties hereto that any installments of rent accruing under the provisions of this Agreement which shall not be paid when due shall bear interest at.the maximum legal rate of interest per annum then prevailing in Florida from the date when the same was payable by the terms hereof, until the same shall be paid by Tenant. Any failure on the City's behalf to enforce this Section shall not constitute a waiver of this provision with respect to future accruals of past due rent. No interest will be charged for payments made within the grace period, such grace period to be defined as within five (5) days from the due date. In addition, there will be a late charge of Fifty ($50.00) Dollars for any payments submitted after the grace period. 19.1.6 If Tenant shall default in making any payment of monies to any person or for any purpose as may be required hereunder, the City may pay such expense but the City shall not be obligated to do so. Tenant, upon the City's paying such expense, shall be obligated to forthwith reimburse the City for the amount thereof. All sums of money payable by Tenant to the City hereunder shall be deemed as rent for use of the Demised Premises and collectable by the City from Tenant as rent, and shall be due from Tenant to the City on the first day of the month following the payment of the expense by the City. 19.1.7 The rights of the City under this Agreement shall be cumulative but not restrictive to those given by law and failure on the part of the City to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 19.2 Default by City: The failure of the City to perform any of the covenants, conditions and agreements of this Agreement which are to be performed by the City-and the continuance of such failure for a period of thirty (30) days after notice thereof in writing from Tenant to the City (which notice shall specify the respects in which Tenant contends that the City failed to perform any such . covenant, conditions and agreements) shall constitute a default by the City, unless such default is one which cannot be cured within thirty (30) days because of circumstances beyond the City's control, and the City within such thirty (30) day period shall have commenced and thereafter 12 shall continue diligently to prosecute all actions necessary to cure such defaults. However, in the event the City fails to perform within the initial thirty (30) day period provided above, and such failure to perform prevents Tenant from operating its business in a customary manner and causes an undue hardship for Tenant, then such failure to perform (regardless of circumstances beyond its control) as indicated above, shall constitute a default by the City. 19.3 Tenant's Rights on Default: If an event of the City's default shall occur, Tenant, to the fullest extent permitted by law, shall have the right to pursue any and all remedies available at law or in equity, including the right to sue for and collect damages, including reasonable attorney fees and costs, to terminate this Agreement; provided however, that Tenant expressly acknowledges and agrees that any recovery by Tenant shall be limited to the amount set forth in Section 32 of this Agreement. 20. Indemnity Against Costs and Charges. 20.1 Tenant shall be liable to the City for all costs and charges, expenses, reasonable attorney's fees, and damages which may be incurred or sustained by the City, by reason of Tenant's breach of any of the provisions of this Agreement. Any sums due the City under the provisions of this item shall constitute a lien against the interest of the Tenant and the Demised Premises and all of Tenant's property situated thereon to the same extent and on the same conditions as delinquent rent would constitute a lien on said premises and property. 20.2 If Tenant shall at any time be in default hereunder, and if the City shall deem it necessary to engage an attorney to enforce the City's rights and Tenant's obligations hereunder, Tenant will reimburse the City for the reasonable expenses incurred thereby, including, but not limited to, court costs and reasonable attorney's fees, whether suit be brought or not and if suit be brought, then Tenant shall be liable for expenses incurred at both the trial and appellate levels. 21. Indemnification Against Claims. 21.1 Tenant shall indemnify and save the City harmless from and against any and all claims or causes of action (whether groundless or otherwise) by or on behalf of any person, firm, or corporation, for personal injury or property damage occurring upon the Demised Premises or upon any other land or other facility or appurtenance used in connection with the Demised Premises, occasioned in whole or in part by any of the following: 13 21.1.1 An act or omission on the part of Tenant, or any employee, agent, contractor, invitee, ,uest assignee, sub-tenant or subcontractor of 9 9 Tenant; 21.1.2 Any misuse, neglect, or unlawful use of the Demised Premises by Tenant, or any employee, agent, contractor, invitee, guest, assignee, sub-tenant or subcontractor of Tenant; 21.1.3 Any breach, violation, or non-performance of any undertaking of Tenant under this Agreement; 21.1.4 Anything growing out of the use or occupancy of the Demised Premises by Tenant or anyone holding or claiming to hold through or under this Agreement. 21.2 Tenant agrees to pay all damages to the Demised Premises and/or other facilities used in connection therewith, caused by Tenant or any employee, agent, contractor, guest, or invitee of Tenant. 22. Signs and Advertising. Without the prior written consent of the City Manager, which consent, if given at all, shall be at the City Manager's sole and absolute discretion, Tenant shall not permit the painting and display of any signs, plaques, lettering or advertising material of any kind on or near the Demised Premises. All additional signage shall comply with signage standards established by the City and comply with all applicable building codes, and any other municipal, County, State and Federal laws. 23. Effect of Conveyance. The term "City" and/or "Landlord" as used in the Agreement means only the owner for the time being of the land and building containing the Demised Premises, so that in the event of any sale of said land and building, or in the event of a lease of said building, the City shall be and hereby is entirely freed and relieved of all covenants and obligations of the City hereunder, and it shall be deemed and construed without further agreement between the parties, or between the parties and the purchaser at such sale, or the lease of this building, that the purchaser or Tenant has assumed and agreed to carry out all covenants and obligations of the City hereunder. 24. Damage to the Demised Premises. 24.1 If the Demised Premises shall be damaged by the elements or other casualty not due to Tenant's negligence, or by fire, but are not thereby rendered untenantable, as determined by the City Manager, in his sole discretion in whole or in art and such damage is covered b the City's p 9 Y Y insurance, if any, (hereinafter referred to as "such occurrence"), the City, shall, as soon as possible after such occurrence, utilize the insurance proceeds to cause such damage to be repaired and the Additional Rent shall not be abated. If by reason of such occurrence, the Demised Premises shall be rendered untenantable, as determined by the City 14 Manager, in his sole discretion, only in part, the City shall as soon as possible utilize the insurance proceeds to cause the damage to be repaired, and the Rent meanwhile shall be abated proportionately as to the portion of the Demised Premises rendered untenantable; provided however, that the City shall promptly obtain a good faith estimate of the time required to render the Demised Premises tenantable and if such time exceeds sixty (60) days, either party shall have the option of canceling this Agreement. 24.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, the City shall have the option, but not the obligation, in its sole discretion, to utilize the insurance proceeds to cause such damage to be repaired and the Rent meanwhile shall be abated. However, the City shall have the right, to be exercised by notice in writing delivered to Tenant within sixty (60) days from and after said occurrence, to elect not to reconstruct the destroyed Demised Premises, and in such event, this Agreement and the tenancy hereby created shall cease as of the date of said occurrence, the Rent to be adjusted as of such date. If the Demised Premises shall be rendered wholly untenantable, Tenant shall have the right, to be exercised by notice in writing, delivered to the City within thirty (30) days from and after said occurrence, to elect to terminate this Agreement, the Rent to be adjusted accordingly. 24.3 Notwithstanding any clause contained in this Section 24, if the damage is not covered by the City's insurance, then the City shall have no obligation to repair the damage, but the City shall advise Tenant in writing within thirty (30) days of the occurrence giving rise to the damage and of its decision not to repair, and the Tenant may, at any time thereafter, elect to terminate this Agreement, and the Rent shall be adjusted accordingly. 25. Quiet Enjoyment. Tenant shall enjoy quiet enjoyment of the Demised Premises and shall not be evicted or disturbed in possession of the Demised Premises so long as Tenant complies with the terms of this Agreement. 26. Waiver. 26.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of the City to insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Agreement, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 26.2 A waiver of any term expressed herein shall not be implied by any neglect of the City to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express 15 waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 26.3 The receipt of any sum paid by Tenant to the City after breach of any condition, covenant, term or provision herein contained shall not be deemed a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation, and not as Rent, unless such breach be expressly waived in writing by the City. 27. Notices. The addresses for all notices required under this Agreement shall be as follows, or at such other address as either party shall be in writing, notify the other: LANDLORD: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With copy to: Asset Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 TENANT: State Representative David Richardson 1701 Meridian Avenue, Suite 402B Miami Beach, Florida 33139 With copy to: State Representative David Richardson 970 S.W. 1St Street, Suite 408 Miami, Florida 33130 In the event Tenant relocates to Suite 402A, as referenced in Subsection 1.2 of this Lease Agreement, Tenant's addresses for all notices required under this Agreement shall be as follows, or at such other address as either party shall be in writing, notify the other: State Representative David Richardson 1701 Meridian Avenue, Suite 402A Miami Beach, Florida 33139 With copy to: State Representative David Richardson 970 S.W. 1 St Street, Suite 408 Miami, Florida 33130 All notices shall be hand delivered and a receipt requested, or by certified mail with Return receipt-requested, and shall be effective upon receipt. 28. Entire and Binding Agreement. This Agreement contains all of the agreements between the parties hereto, and it 16 may not be modified in any manner other than by agreement in writing signed by all the parties hereto or their successors in interest. The terms, covenants and conditions contained herein shall inure to the benefit of and be binding upon the City.and Tenant and.their respective successors and assigns, except as may be otherwise expressly provided in this Agreement. 29. Provisions Severable. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 30. Captions. The captions contained herein are for the convenience and reference only and shall not be deemed a part of this Agreement or construed as in any manner limiting or amplifying the terms and provisions of this Agreement to which they relate. 31. Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall include the singular, and the use of one gender shall include all genders. 32. Limitation of Liability. The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of Five Thousand ($5,000.00) Dollars. Tenant hereby expresses its willingness to enter into this Agreement with Tenant's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of $5,000.00. Accordingly, and notwithstanding any other term or condition of this Agreement, Tenant hereby agrees that the City shall not be liable to Tenant for damage in an amount in excess of $5,000.00 for any action or claim for breach of contract arising out of the performance or non- performance of any obligations imposed upon the City by this Agreement. Nothing contained in this Section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability as set forth in Florida Statutes, Section 768.28. 33. Surrender of the Demised Premises. Tenant shall, on or before the last day of the Term herein demised, or the sooner termination thereof, peaceably and quietly leave, surrender and yield upon to the City the Demised Premises, together with any and all equipment, fixtures, furnishings, appliances or other personal property, if any, located at or on the Demised Premises and used by Tenant in the maintenance, management or operation of the Demised Premises, excluding any trade fixtures or personal property, if any, which can be removed without material injury to the Demised Premises, free of all liens, claims and encumbrances and rights of others or 17 i broom-clean, together with all structural changes, alterations, additions, and improvements which may have been made upon the Demised Premises, in good order, condition and repair, reasonable wear and tear excepted, subject, however, to the subsequent provisions of this Section. Any property which pursuant to the provisions of this Section is removable by Tenant on or at the Demised Premises upon the termination of this Agreement and is not so removed may, at the option of the City, be deemed abandoned by Tenant, and either may be retained by the City as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the City may see fit. If the Demised Premises and personal property, if any, be not surrendered at the end of the Term as provided in this Section, Tenant shall make good the City all damages which the City shall suffer by reason thereof, and shall indemnify and hold harmless the City against all claims made by any succeeding tenant or purchaser, so far as such delay is occasioned by the failure of Tenant to surrender the Demised Premises as and when herein required. 34. Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 35. Venue: This Agreement shall be deemed to have been made and shall be construed and interpreted in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. CITY AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT THE CITY AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT. 36. Radon is a naturally occurring radioactive gas that, when it is accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of Radon that exceed Federal and State guidelines have been found in buildings in Florida. Additional information regarding Radon and Radon testing may be obtained from your County Public Health Unit. 37. No Dangerous Materials. Tenant agrees not to use or permit in the Demised Premises the storage and/or use of gasoline, fuel oils, diesel, illuminating oils, oil lamps, combustible powered electricity producing generators, turpentine, benzene, naphtha, propane, natural gas, or other similar substances, combustible materials, or explosives of any kind, or any substance or thing prohibited in the standard policies of fire insurance companies in the State of Florida. Any such substances or materials found within the Demised Premises shall be immediately removed. 18 Tenant shall indemnify and hold the City harmless from any loss, damage, cost, or expense of the City, including, without limitation, reasonable attorney's fees, incurred as a result of, arising from, or connected with the placement by Tenant of any "hazardous substance" or "petroleum products" on, in or upon the Demised Premises as those terms are defined by applicable Federal and State Statute, or any environmental rules and environmental regulations promulgated thereunder. The provisions of this Section 37 shall survive the termination or earlier expiration of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed, all as of the day and year first above written, indicating their agreement. Attest: CITY OF MIAMI BEACH, FLORIDA .....Bq Rafael Granado, E= CITY C �ORAT Matti H rrera Bower, MAYOR N 26 Witness: STATE REPRESENTATIVE DAVID RICHARDSON Sign ture U David It chardson Print Nanqd 0 Jr Signature APPROVED AS TO FORM &LANGUAGE F' )(1 rbno 06( vo &FOR,EXECUTION Print Name �ilg)13 to ey I Daq, F:\RHCD1$ALL\ECON\$ALL\ASSET\777-17th Street\Rep Richardson&Comm Barreiro\Richardson Lease Agreement -18- 13).docx 19 EXHIBIT 1 Demised Premises Suite 4028 AREA EA 425 So. FT. ELEVATOR �I LOBBY OFFICE C� 130 SQ.Fr. i f CORRIDOR RE ROOM / n / / Wf�ITING/ RECEPTION/ /SEA/ WORK AREA OFFICE 402A 4026 WAITING 149 AREA 541 SQF r SQFr TENANT OFFICE NF NC ROOM / OFFICE OFFICE OFFICE PLAN SCALE: 1/8'=1'-0' 0 �rA ■�� i$n +HHn d$St awM1 wort. ate, o`ca dVn L CI�M1 N F M1 "M M 9 sdnm. aQ � ■0'd0 b.11 11! 64fl �� eanea� ia■m a�a FOURTH FLOOR PLAN SCALE:NTS 4th Floor Office Space 0, 777 Building ® MIAMI EACH G 1701 Meridian Avenue 20 EXHIBIT 2 Demised Premises Suite 402A I WORK \ \ / AREA \ 425 SQ. Fr. r`�/ ELEVATOR �, LOBBY / CL OFFICE \ 130 SQ.FT. f CORRIDOR RE4W' F-� ROOM / TI / / WAITING/ RECEPTION/ / ����q✓ WORK AREA �FICE 0� 402B WAITING 143 AREA 541 SQFr SQL, TENANT / OFFICE NF NC / ROOM OFFICE OFFICE OFFICE PLAN SCALE: ua•=1'-0- ® driEf[ Im e15L wax, wan. °rQ bIU c� once d3en ■ °_ era awry •mo :v .�.�. su tas FOURTH FLOOR PLAN ® SCALE:NTS PRO=IMA: 4th Floor Office Space A % 777 Building MIAMI BEACH 1701 Meridian Avenue 21