LTC 118-2015 Space Planning MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 118-2015 L 1TTER TO COMMISSION
TO: Mayor Philip Levine ana members if the Cit Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 19, 2015
SUBJECT: SPACE PLANNING
This Letter to Commission (LTC) is to inform you that the Administration has identified space
needs in various departments. For example,the recently formed Transportation Department
is currently occupying space in the Public Works Department. This has restricted space
utilization for Public Works and does not provide an ideal work environment for the
Transportation Department staff. Additionally, the Code Compliance and Housing and
Community Development Department both occupy space in the 55517th Street building that
will be demolished if the Convention Center Hotel project is approved by referendum in
November.
Rather than incurring new costs for renting office space for City departments we are looking
at recapturing office space that is currently leased to private tenants in City owned buildings.
For example, the City currently has a tenant, Community AIDS Resource, Inc. (d/b/a Care
Resource) that occupies 1,926 square feet of office space in the 1701 Meridian Ave
Building. This is the only private office tenant in the office building, as all other offices are
currently occupied by City departments or quasi-city entities such as the Miami Beach Visitor
and Convention Authority(MBVCA)and State Representative Richardson. It makes sense
to recapture this space for City use since it is on the City Hall campus. Care Resource's
lease expires 9/30/15 and doesn't have renewal options; they currently pay approximately
$67,000 annually in rent.
Historic City Hall is another example of a City owned building where portions of the office
space can be recaptured for City use. The building has nine(9) leases, including two (2)
ground floor tenants (Miami Beach Cinemateque and Miami Dade Gay and Lesbian
Chamber of Commerce), and Miami Dade Clerk of Courts. There are six(6) office tenants
on floor three (3) — eight (8) occupying 9,108 total square feet. These leases expire at
various times starting as early as December 2015. All other leases may be renewed at the
City's sole discretion. The attached Exhibit 1 summarizes the leases at Historic City Hall.
In order to recapture office space to support the City's needs, I will be providing Care
Resource with a courtesy notice by the end of this month advising them that the City will not
extend the term of their lease. I will also continue to evaluate the leases at Historic City Hall
and in order to ensure the City's office space needs are met. In the long-term, the City may
wish to reevaluate City-owned space leased to third parties at below market rates (e.g. to
non-profit entities).
Please contact me with any questions.
C: Kathie G. Brooks, Assistant City Manager
Max A. Sklar, Tourism, Culture, and Economic Development Director
4
ark Milisits, Asset Manager
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EXHIBIT 1
Current terms & Renewal Option
Historic City Hall Tenants
Remaining Annual
Tenant Current Term Options Rent
MDGLCC 04/01/13 -03/31/16 one (3)year $30,000
Miami Beach Film Society 03/01/13-02/28/16 one (3) year $53,819
Miami Dade Clerk of Courts 03/19/1991-03/31/2092 Auto renew $15,623
Strang Adams, PA 07/01/13-06/30/16 one (3)year $21,676
Paul Sack 03/01/13-02/28/16 one (3)year $16,544
Rubin & Bickman 07/01/13-06/30/16 one (3)year $36,146
David Wrubel 10/01/13-09/30/16 one (3)year $36,348
Gemcor 01/01/13-12/31/15 one (3) year $36,977
Immunity 06/01/13-05/31/16 one (3) year $82,038