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2015-29037 Reso RESOLUTION NO. 2015-29037 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A LEASE AGREEMENT, BASED UPON THE MATERIAL TERMS SET FORTH IN THIS RESOLUTION, BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND JALLER GROSSMAN PARTNERSHIP LLC, AS LANDLORD, FOR USE OF APPROXIMATELY 18,200 RENTABLE SQUARE FEET OF PROPERTY, LOCATED AT 6700 N.W. 36TH AVENUE, MIAMI, FLORIDA, TO BE USED AS STORAGE SPACE PRIMARILY FOR THE CITY'S POLICE DEPARTMENT; SAID LEASE HAVING AN INITIAL TERM OF FIVE (5) YEARS AND TWO (2) MONTHS, COMMENCING ON AUGUST 1, 2015, AND ENDING ON SEPTEMBER 30, 2020, WITH ONE (1) ADDITIONAL RENEWAL OPTION, AT THE CITY'S DISCRETION, FOR A TERM OF FIVE (5) YEARS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID LEASE AGREEMENT UPON SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, the Miami Beach Police Department has stored disabled vehicles for a variety of reasons within the Department's parking garage, located at 1100 Washington Avenue, Garage for many years; and WHEREAS, the designated storage for these vehicles has reached full capacity which has reduced the availability for employee parking; and WHEREAS, additional Conex storage containers which house evidence are also stored in the Garage, and are also taking up parking spaces in the Garage; and WHEREAS, the Administration searched for an alternate site to address the current need for storage and future storage needs, and, in conducting its due diligence, considered approximately ten (10) sites which could accommodate this use; and WHEREAS, the Administration recommends that the City Commission authorize the negotiation of a lease between the City, as tenant, and Jailer Grossman Partnership LLC, as landlord, for the site located at 6700 N.W. 36th Avenue, Miami, Florida 33147 (premises), based upon the following material terms: LANDLORD: Jailer Grossman Partnership LLC PREMISES: 6700 NW 36th Avenue Miami, Florida 33147 SIZE: Approximately 18,200 square feet TERM: Five (5) Years BASE RENT: $4.29 per square foot ($78,000 annually; $6,500 monthly) INITIAL LEASE TERM: August 1, 2015 - September 30, 2020 SECURITY DEPOSIT: One (1) month's rent ($6,500.00) USE: The premises shall be used by the City as a storage location for the City of Miami Beach Police and Parking Departments. RENEWAL OPTION: One (1) renewal option for five (5) years, subject to 180 days prior written notice to Landlord. The rental rate for the entire renewal term shall be fixed and shall be calculated by adding the base rent amount of $4.94 per square foot ($90,000 per year; $7,500 per month) plus any increase in the amount of real estate taxes assessed against the premises between the base year of the initial term (year 2015) and the last year of the initial term (year 2020); and WHEREAS, the Administration recommends that, upon successful negotiations, the City Commission authorize the execution of a lease between the City and Jailer Grossman Partnership LLC substantially in the form attached hereto and incorporated herein as Exhibit «A„ 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 hereby approve and authorize the Administration to negotiate a lease agreement, based upon the material terms set forth in this resolution, between the City of Miami Beach, as tenant, and Jailer Grossman Partnership LLC, as landlord, for use of approximately 18,200 rentable square feet of property, located at 6700 N.W. 36th Avenue, Miami, Florida, to be used as storage space primarily for the City's Police Department; said lease having an initial term of five (5) years and two (2) months, commencing on August 1, 2015, and ending on September 30, 2020, with one (1) additional renewal option, at the City's discretion, for a term of five (5) years; and further authorize the Mayor and City Clerk to execute said lease agreement upon successful negotiations by the Administration. PASSED and ADOPTED this 10th day of June, 2015. ATTEST: Rafael E. Granado, Ci;''t ..•!.• ,9 ���� Ph' •p �� - ayor p ATED: / T:WGENDA\2015\JUne\ : a1�b&�e t 'olice DP03 ent Warehouse Lease Reso • it (;H �6 APPROVED AS TO �„\ FORM & LANGUAGE & FOR EXECUTION 22 11A1-----10,4L-15 City Attorney Date COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Approving and Authorizing the Administration To Negotiate A Lease Agreement, Based Upon Material Terms Set Forth In this Resolution, Between The City Of Miami Beach,As Tenant,And Jailer Grossman Partnership LLC,As Landlord, For Use Of Approximately 18,200 Rentable Square Feet Of Property, Located At 6700 N.W. 36TH Avenue, Miami, Florida, To Be Used As Storage Space Primarily For The City's Police Department; Said Lease Having An Initial Term Of Five (5) Years And Two (2) months, Commencing On August 1, 2015, And Ending On September 30, 2020, With One (1)Additional Renewal Option, At City's Discretion,for a Term Of Five(5)Years; And Further Authorizing The Mayor And City Clerk To Execute Said Lease Agreement upon successful negotiations by the Administration. Key Intended Outcome Supported: Streamline the delivery of services though all departments/Ensure expenditures re sustainable over time. Supporting Data (Surveys, Environmental Scan, etc.): Item Summary/Recommendation: The Police Department has exhausted all options for storage of large evidentiary items, namely vehicles, in the parking garage located at Police Headquarters. Employees of the City of Miami Beach actively searched for an off-site vehicle/ property storage facility to lease. In total, over ten properties were considered. The site the Administration is recommending is located at 6700 NW 36th Avenue, Miami, Fl and has 18,200 square feet(premises). The Administration seeks authorization to execute a lease for the premises for an initial term of 5 years and 2 months (8-1-2015 through 9-30-2020), with 1 renewal option for a term of 5 years. The monthly rental for the initial term shall be $6,500 per month and the monthly rental for the renewal term shall be $90,000 per year($7,500 per month) plus any increase in the amount of real estate taxes assessed against the premises during the initial term. Advisory Board Recommendation: NA Financial Information: Source of Amount Account Funds: 1 $78,000 011-1130-000323 2 tid"' 3 OBPI Total Financial Impact Summary: Funds have been identified from the Police Department's current budget and moving forward this expense will be included in the Police Department's current service level budget. City Clerk's Office Legislative Tracking: Wendy Rich-Goldschmidt X3054 Sign-Offs: Department Director Assistant City Manager City Manager Chief Daniel J. Oates — •- Jimmy L. Morales MIAMIBEACI-1 AGENDA ITEM C 7 P--O DATE �o ` '15- MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION EMORANDUM TO: Mayor Philip Levine and Members of the City ommission FROM: Jimmy L. Morales, City Manager DATE: June 10, 2015 SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A LEASE AGREEMENT, BASED UPON MATERIAL TERMS SET FORTH IN THIS RESOLUTION, BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND JALLER GROSSMAN PARTNERSHIP LLC, AS LANDLORD, FOR USE OF APPROXIMATELY 18,200 RENTABLE SQUARE FEET OF PROPERTY, LOCATED AT 6700 N.W. 36TH AVENUE, MIAMI, FLORIDA, TO BE USED AS STORAGE SPACE PRIMARILY FOR THE CITY'S POLICE DEPARTMENT; SAID LEASE HAVING AN INITIAL TERM OF FIVE (5) YEARS AND TWO (2) MONTHS, COMMENCING ON AUGUST 1, 2015, AND ENDING ON SEPTEMBER 30, 2020, WITH ONE (1) ADDITIONAL RENEWAL OPTION, AT THE CITY'S DISCRETION, FOR A TERM OF FIVE (5) YEARS; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID LEASE AGREEMENT UPON SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND The Police Department located at 1100 Washington Avenue has stored vehicles within the parking garage for many years. These vehicles have been stored for various reasons to include but not limited to: criminal investigations, marine patrol investigations, auto theft investigations, accident investigations, forfeitures, and crashed police vehicles. Some of the vehicles contain bio-hazardous materials such as blood, body tissue and other bodily fluids. There are also vehicles that contain shards of broken glass, Commission Memorandum New Lease Agreement—Police Department June 10, 2015 Page 2 of 3 protruding metal parts and a few vehicles / motorcycles that leak oil and other fluids. Members of the Police Department are often within close proximity to these vehicles. The designated storage areas for these vehicles are at full capacity and have been so for some time. Consequently, we are forced to park these vehicles in other designated parking spaces throughout the garage that were originally designated as employee parking. As is required by law, the City is mandated to maintain the integrity of all forfeiture vehicles. The initial design of the building had a fenced area located on the roof that was specifically designated for security of forfeiture vehicles. However, placement on the roof has proven inadequate because the vehicles are unprotected from the elements. Further, the ground floor of the parking garage is not completely secure, and therefore not an option. Beside vehicle and bicycle storage, there are currently four Conex containers, which hold evidence and are stored in the garage. All of the additional fenced/secured containment areas within the garage that store additional evidence are also at capacity. The Police Department has reached a critical point in which additional storage space is needed for property and evidence. Additionally, the Parking Department currently has storage needs for several, large Variable Message Signs (VMS), as well as other vehicles that may require storage. ANALYSIS In order to identify possible solutions, several options were reviewed. The possibility of storing inoperable vehicles on the roof of the station is not viable because tow companies can't maneuver a flatbed wrecker through each level of the garage due to height restrictions. For these same reasons "double stacking" vehicles in a single parking space is not possible. The City's Real Estate Office assisted the Police Department and actively searched for an off-site vehicle / property storage facility to lease. The search criteria used was a location relatively close to the City of Miami Beach with a property size of at least 10,000 square feet, condensed territory. Some of the locations toured were either too expensive, had zoning issues or did not meet space requirements. In total, over ten properties were considered. The site eventually chosen is located at 6700 NW 36th Avenue (unincorporated Miami Dade County) and contains approximately 18,200 square feet. Lease proposals were negotiated between the City and the Landlord with the initial asking price of$9,000 per month or $5.93 per square foot. Upon further negotiation, the Landlord agreed to a fixed monthly rental cost of $6,500 for the five-year initial lease term, with one (1) additional five (5) year renewal option, at a fixed monthly rental cost for the entire renewal term, calculated by adding the base rental rate of $7,500, per month, plus any increase in real estate taxes during the initial lease term. The Lease Agreement, in substantial form, is attached hereto as Exhibit A (Lease Agreement), and is subject to Legal and Regulatory approvals as well as final approval by the Landlord. Commission Memorandum New Lease Agreement—Police Department June 10, 2015 Page 3 of 3 A summary of the proposed lease terms are as follows: TENANT: City of Miami Beach, a Florida municipal corporation. LANDLORD: Jailer Grossman Partnership LLC. PREMISES: 6700 NW 36th Avenue Miami, Florida 33147 SIZE: Approximately 18,200 square feet TERM: Five (5) Years BASE RENT: $4.29 per square foot ($78,000 annually; $6,500 monthly). INITIAL LEASE TERM: August 1, 2015- September 30, 2020 SECURITY DEPOSIT: One (1) month's rent ($6,500.00) USE: The premises shall be used by the City as a storage location for the City of Miami Beach Police and Parking Departments. RENEWAL OPTION: One (1) renewal option for five (5) years, subject to 180 days prior written notice to Landlord. The rental rate for the entire renewal term shall be fixed and shall be calculated by adding the base rent amount of $4.94 per square foot ($90,000 per year; $7,500 per month) plus any increase in the amount of real estate taxes assessed against the premises between the base year of the initial term (year 2015) and the last year of the initial term (year 2020). CONCLUSION The Administration recommends that the Mayor and City Commission adopt the Resolution approving the proposed Lease Agreement between the City and Jailer Grossman Partnership LLC for approximately 18,200 rentable square feet of space located at 6700 NW 36th Avenue, Miami, Florida. JLM/ppD--JOO/��Ib Exhibits: A Lease Agreement T:/AGENDA/2015/JUNE/MB POLICE DEPT/Memo Police Department Warehouse Lease. Kohn Commercial Real Estate KOHN EXHIBIT PO Box 331858 cOIVIMERc.AC Miami, FL 33233-1858 -I Pk D.305.794.6704 www.kohncommercial.com LEASE AGREEMENT THIS LEASE AGREEMENT (lease or contract) entered into this day of June, 2015 (Effective Date) by and between Jailer Grossman Partnership LLC, a limited liability company, hereinafter called the lessor or landlord, party of the first part and City of Miami Beach, a Florida municipal corporation, hereinafter called the lessee or tenant, party of the second part. WITNESSETH, that the said lessor does this day lease unto said lessee, and said lessor does hereby hire and take as tenant the City of Miami Beach under said lessor space, identified by Folio No. 30-3116 017 0020, including a warehouse building having +/-18,200 sq. ft. and adjoining area, situated in 6700 NW 36 Avenue, in Miami, State of Florida, (premises) to be used and occupied by the lessee as office, warehouse, storage use (including storage of vehicles, containers, and other similar municipal storage uses) and for no other purposes or uses, for the term of Sixty two (62) months, beginning the 1st day of August, 2015 (lease commencement date) and ending:the 30th day of Septernber, 2020, at and for the agreed:rental;of Four..Hundred Three { Thousand_:and 0.5/100 Dollars'($403,000.00) payable as follows: . it=L-_. - : F• i.' r..k... r pSi= 5 wys {Months 1-12: August!1, 2015auly 31, 2016 =.$6,500.00 per-_month 4« ,Months 13 2 August 1, 2016E-July 31, 2017 4,$6,500.00 per month : . Months 25X361 August 1, 2017. July 31, 018 —$6,500.00 month p Months 37 48 August.1, 2010-- July 31,-2 19 -$6.500.00 per month_ Months 49-603 Au ust:1:20:19 - Jul 31 :2020 - V61500.00 er months }Nu -=.,-,rs „:.=:';:- +",.�,f 3 ? ,air `` . yam- tiMonths 61 62 August 1, 2020,—September 30, 2020 - $6,500.00 per month fin 1 3,, '- :,1)..,..1,,, { h l 1, �^= ,,::.f 9. Landlord acknowledges that; tenant :a municipal corporation organized under the laws of the State rof Florida and, as suchz, is exempt from{payment of sales taxes in connection with the rental tso iv S Sd a rn n der this lease. a t 3 }Y. t z • a � Tenant shall have one (1) renewal option for a term of five (5) years, subject to providing landlord written notice no later than one-hundred twenty (120) days prior to the expiration of the existing term, or renewal term, as the case may be. The rental for the renewal term shall be subject to a one (1) time adjustment at the commencement of the first year of the renewal term and thereafter remain fixed throughout the remainder of the renewal term. The rental for the renewal term shall be calculated by adding the base rental amount of $90,000 per year ($7,500 per month) plus the increase in the amount of real estate taxes assessed against the premises during the initial term (real estate tax increase). The real estate tax increase shall be determined by subtracting the amount of the real estate taxes assessed during the base year of the initial lease term (year 2015) from the amount of real estate taxes assessed against the premises for the last year of the initial term (year 2020). By way of illustration, if the real estate tax increase totaled $7,500, the rent for the renewal term would be $97,500 per year ($8,125 per month). Upon execution of lease documents, tenant shall deposit the amount of $6,500.00, which represents 1 month security deposit and pay the first month's rent in the amount of$6,500.00. All payments are to be made to the lessor on the first of each and every month in advance without demand at the office of Jailer Grossman Partnership LLC, located at 4400 NW 19th Ave, Unit K, Page 1 of 8 Kohn Commercial Real Estate KO H.H PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com Pompano Beach, FL 33064, in the State of Florida, or at such other place and to such other person, as the lessor may from time to time designate in writing. The following express stipulations and conditions are made a part of this lease and are hereby assented to by the lessee: FIRST: ASSIGNMENT OR SUBLETTING. The lessee shall not assign this lease, nor sub-let the premises, or any part thereof nor use the same, or any part thereof, nor permit the same, or any part thereof, to be used for any other purpose than as above stipulated, nor make any alterations therein, and all additions thereto, without the written consent of the lessor which will not be unreasonably withheld, and all additions, fixtures or improvements which may be made by the lessee, except movable office furniture, shall become the property of the lessor and remain upon the premises as a part thereof, and be surrendered with the premises at the termination of this lease. SECOND: RELEASE. All personal property placed or moved in the premises above described shall be at the risk of the lessee or owned thereof, and lessor shall not be liable for any damage to said personal property, or to the lessee arising from the bursting or leaking of water pipes, or from any act of negligence of any co-tenant or occupants of the building or of any person whomsoever. THIRD: ORDINANCE. Landlord warrants and represents that as of Effective Date of this lease the premises complies with all Federal, State, and local Ordinances (collectively, laws) applicable to said premises, and shall be responsible for any costs associated with ensuring compliance with said laws. The tenant, during the lease term and renewal term (if exercised), shall promptly execute and comply with the statutes, ordinances, rules, orders, regulations and requirements of the Federal, State and City Government and of any and all of their Departments and Bureaus applicable to said premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said premises during said term; and shall also promptly comply with and execute all rules, orders and regulations of the applicable fire prevention codes for the prevention of fires. FOURTH: DESTRUCTION OF PREMISES. In the event the premises shall be destroyed or so damaged or injured by the fire or other casualty during the life of this agreement, whereby the same shall be rendered untenantable, then the lessor shall have the right to render said premises tenantable by repairs within forty five days therefrom. If said premises are not rendered tenantable within the said time, it shall be optional with either party hereto to cancel this lease, and in the event of such cancellation the rent shall be paid only to the date of such fire casualty, the cancellation herein mentioned shall be evidenced in writing. FIFTH: ACCEPTANCE. The prompt payment of the rent for said premises upon the dates names, and the faithful observance of the rules and regulations printed upon this lease, and which are hereby made a part of this covenant, are the conditions upon which the lease is made and accepted, and any failure on the part of the lessee to comply with the terms of said lease shall constitute a default hereunder. SIXTH: ABANDONMENT. If the lessee shall abandon or vacate said premises before the end of the term of this lease, or shall suffer the rent to be in arrears, the lessor may, at his option, forthwith cancel this lease or he may enter said premises as the agent of the lessee, without being liable in Page 2 of 8 7 Kohn Commercial Real Estate s OHN PO Box 331858 ._ Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com any way therefore, and relet the premises with or without any furniture that may be therein, as the agent of the lessee, at such price and upon such terms and for such duration of time as the lessor may determine, and receive the rent therefore, applying the same to the payment of the rent due by these presents, and if the full rental herein provided shall not be realized by lessor over and above the expenses to lessor in such re-letting, the said lessee shall pay any deficiency. SEVENTH: ATTORNEYS FEES. Lessee agrees to pay the cost of collection and reasonable attorney's fee on any part of said rental that may be collected by suit of by attorney, after the same is past due. EIGHTH: UTILITIES. The lessee agrees that he will pay all charges for, gas, electricity, or other illumination, and for all water used on said premises directly to the utility provider, and should said charges for, light or water herein provided for at any time remain due and unpaid for the space of five days after the same shall have become due, the lessor may, at its option, pay on behalf of the lessee the outstanding utility bills, for which lessee shall be obligated to reimburse lessor, as additlonal�rent ss r < w�•r r { n .. r J 3 ��r m tm 7 Y no,:l zi :r 4 r•_Yr +•a•+"" �` ':. i f'.{w v ,.� f yF-, '�a NINTHS ASSIGNMENT FURNITURE &,FIXTURE. DELETED r ;a.,_ k i 4 s 4 , { c • sE <3 'tt + L r fr3: '. wit TENTH: LATE FEES. Lessee shallifbe required .to "pay lessor a late fee equal to fifty dollars ($50F60) any rental payments due that`remains_unpaid for ten (1;0); days after its due date. Any rental payments due`that remain unpaid for fifteen: (15) days shall accrue an additional Fate fee, of -:fib:' {a�;:_. v.{r{v{ �' 4 -' r eighteen percent (1�8%0) per annum ;or the highest interest rate permitted ° law, whichever is less.• rc: {„ ,ter.. -,,,y4:-,,,6, { _= s {; ; ELEVENTH: INSURrANCErPROPEY TAX sLanjdlord shall be responsible for payments of the Real Property Taxes assessed agalnststhe demised premises and-Or building insurance. Landlord agrees that it will: keep in force during the term of this lease, a landlords only liability �=�''� ham: ra�''rs' � ti � ,- polic_y.(Landlord will not be providing potection for Tenant's trade=fixtures, furnishings, personal propertyt©f improvements providing protection3 against any f perils including within the classification of fire, lightning and windstorm). tfi. -' c=`• TWELFTH: MAINTENANCE. The lessor, or any of his agents, shall have the right to enter said premises during all reasonable hours, so long as accompanied by tenant, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit said premises, and to put or keep upon the doors or windows thereof a notice "FOR RENT" at any time within one hundred twenty (120) days before the expiration of this lease. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations, or additions, which do not conform to this agreement, or to the rules and regulations of the building. Landlord shall be responsible for the roof and the structure of the building. THIRTEENTH: RELEASE TO LESSOR. Lessor shall ensure that the premises shall be in good and operating condition, and in compliance with all applicable laws as of the lease commencement date, and further agrees to satisfactorily complete the baseline repairs as set forth in the attached Exhibit "A". Upon completion of said base line repairs, the parties shall execute written confirmation that all baseline repairs have been completed (Acceptance Date) and lessee accepts the premises in the condition that exist as of said Acceptance Date, and agrees to maintain said premises in the same condition, order and repairs as they are as of said Acceptance Date, excepting only Page 3 of 8 FT Kohn Commercial Real Estate KQ H N PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.corn reasonable wear and tear arising from the use thereof under this agreement, and to make good to said lessor immediately upon demand, any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the building caused by any act or neglect of lessee, or of any person or persons in the employ under the control of the lessee. FOURTEENTH: DAMAGES. It is expressly agreed and understood by and between the parties to this agreement, that the landlord shall not be liable for any damage or injury by water, which may be sustained by the said tenant or other person or for any other damage or injury resulting from the carelessness, negligence or improper conduct on the part of any other tenant or agents, or employees, of by reason of the breakage, or obstruction of the water, sewer or soil pipes, or other leakage in or about the said building. There is no smoking permitted inside the building. FIFTEENTH: BANKRUPTCY. If the lessee shall become insolvent or if bankruptcy proceedings shall be begun by or against the lessee, before the end of said term the lessor is hereby irrevocably authorized at its option, to forthwith cancel this lease, as for a default. Lessor may elect to accept}rent from such receiver, trustee, or other judicial officer -ducting -the term of their r �X� , � K'-'G= "� � 74�e sY'.v,�?'iv;• -��'.i '� .+i r� S,� -.�v. occu 5 anc' their fiducia r y ca s acity without affectin lessor's rights contained `contract ,4 .? Ga:•. t*..i`i'i'�4"sp "L. t S but note receiver-;trustee or other judicial officer shall have any right title or interest in or to the above described property bey_virtue of this contract ,.. c ` L ~ice { SIXTEENTH: BROKERAGEA Lessor stall be responsible for the payment of the commission due Kohn Commercial al Estate Eachparty warrants anrepresentsthat he or it has d-e�lt with no brokerZother than Kohn Commercial Real Estate in connection with_ lease.. Each paly, shall be responsible to the <otherWr any claims, demands, ''••judgments, actions- causes of: actions, att negligence, and/or damages; including reasonable orney's fees°and suit costs in the event that any person or entity =otherithan Kohn Commercial Real;Estate, claims to have dealt with said party and claims to be entitled tot" in connection with this transaction. SEVENTEENTH HEIRS, ASSIGNS OR SUCCESSORS. This contact shall bind the lessor and its assigns Or-successors, and,the heirs, assigns; personal representatives, or successors as-the case may be, of the lessee. EIGHTEENTH: TIME. It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. NINETEENTH: NOTICES. It is understood and agreed between the parties hereto that written notice mailed or delivered to the City of Miami Beach Police Department, 1100 Washington Avenue, Miami Beach, Florida 33139 shall constitute sufficient notice to the lessee; and written notice mailed or delivered to the office of the lessor located at 4400 NW 19th Ave, Unit K, Pompano Beach, FL 33064, shall constitute sufficient notice to the lessor, to comply with the terms of this contract. TWENTIETH: RIGHTS. The rights or the lessor under the foregoing shall be cumulative, and failure on the part of the lessor to exercise promptly any rights given hereunder shall not operate to forfeit any of the said rights. TWENTY-FIRST: CHARGES. It is further understood and agreed between the parties hereto that any charges against the lessee by the lessor for services or for work done on the premises by Page 4 of 8 Kohn Commercial Real Estate �E N PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com order of the lessee or otherwise accruing under this contract to lessee shall be considered as rent due and shall be included in any lien for rent due and unpaid. TWENTY-SECOND: SIGNS. It is hereby understood and agreed that any signs or advertising to be used, including awnings, in connection with the premises leased hereunder shall be first submitted to the lessor for approval before installation of same. TWENTY-THIRD: CARE AND MAINTENANCE OF PREMISES. Lessee acknowledges that the premises are in good order and repair, unless otherwise indicated herein. Lessee shall, at his own expense and at all times, maintain the premises in good and safe condition, including plate glass, electrical wiring, plumbing and heating installations and any other system or equipment upon the premises and shall surrender the same, at termination hereof, in as good condition as received, normal wear and tear expected. Lessee shall be responsible for all repairs required, excepting the roof, exterior, walls, and structural foundations. TWENTY-FOURTH: POSSESSION. If lessor is unable to deliver possession of the premises at the commencement hereof, lessor shall neither be liable for any damage caused thereby, nor shall this lease be void or voidable, but lessees shall not be liable for any rent until possession is delivered. Lessee may terminate this lease if possession is not delivered within 30 of the commencement of the term hereof. TWENTY-FIFTH: INSURANCE. Lessor acknowledges that lessee is a Florida municipal corporation and, as such, self-insures for losses relating to public liability, including bodily injury and property damage. Upon the request of lessor, lessee will provide lessor with a letter confirming lessee's self-insurance status. TWENTY-SIXTH: EMINENT DOMAIN. If the premises or any part thereof or any estate therein, or any other part of the building materially affecting lessee's use of the premises, shall be taken by eminent domain, this lease shall terminate on the date when title vests pursuant to such taking. The rent, and any additional rent, shall be apportioned as of the termination date and any rent paid for any period beyond that date shall be repaid to lessee. Lessee shall not be entitled to any part of the award for such taking or any payment in lieu thereof, but lessee may file a claim for any taking YP Y � Y Y 9 of fixtures and improvements owned by lessee, and for moving expenses. TWENTY-SEVENTH: SECURITY DEPOSIT. Tenant shall deposit with landlord, and landlord shall hold, $6,500.00, as security for tenant's faithful performance of tenant's obligations (the "security deposit"). If tenant fails to pay rent or other charges due hereunder, or otherwise defaults with respect to any provision of this lease, landlord may use, apply or retain all or any portion of the security deposit for the payment of any rent or other charge in default or for the payment of any other sum to which landlord may become obligated by reason of tenant's default. Upon fifteen (15) days after written demand therefore, tenant shall deposit cash with landlord in an amount sufficient to restore the security deposit to the full amount hereinabove stated and tenant's failure to do so shall be a material breach of this lease. Landlord shall not be required to keep said deposit separate from its general accounts. The security deposit shall be returned to the tenant upon fifteen (15) days of the lease expiration date or from the date tenant no longer occupies the building so long as tenant is in compliance with all terms of the lease. No trust relationship is created herein between landlord and tenant with respect to the security deposit. Page5of8 Kohn Commercial Real Estate oQE !IN PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.corn TWENTY-EIGHTH: DEFAULTS AND REMEDIES: Defaults & Remedies: The occurrence of any one or more of the following events shall constitute a material default and breach of this lease by tenant: (A) The abandonment and nonpayment of rent and other non-performance of the obligations of the lease by tenant. (B) The failure by tenant to make any payment of rent or any other payment required to be made by tenant hereunder, as and when due, where such failure shall continue for a period of five (5) days after tenant's receipt of written notice thereof. (C) The failure by tenant to observe or perform any of the covenants, conditions or provisions of this lease to be observed or performed by tenant, where such failure shall continue for a period of thirty (30) days after written notice thereof from landlord to tenant; provided, however, that if the nature of the tenant's default is such that more than thirty (30) days are reasonably required to cure, then tenant shall not be deemed to be in default if tenant commenced such cure within the thirty (30) day period and thereafter diligently prosecutes such cure to completion. In the event of a default by landlord, tenant shall give landlord notice specifying such default with particularity, and landlord should have a period of (30) thirty days following the date of such notice in which to:_cure such default: rovided, however, that if such defaultRreasonably,requires. more than (30 thirty {days to cure��landlord°should have ay reasonable time= © such;default provided y(%'�'�)r} C_S^� Y"z'. 1 .....ate. ., . vi,�.'' �?=\7K_ :- _�s^� ...�. s r:�: •'=ar:�?_a.. �: �a.:.i is r.: landlord commences to cur`.e.,within such (30) days~=period and thereafter diligently prosecute such cure -completion] . - ' ' "{ TWENTY-NINTH SUBORDINATION :This leases is and:shall be subordinated to all existing and futureIiens and en cumbrances againstthe propertiy. fi�,; Fti ?e»r FS.sr c { 'ms . ms co THIRTIETH: RADON GAS Inacdance with`the re uirement of-Florida Statutes Section 404.56 (8) the<following notice is heieby giv : Radon a a aturally_occurring radioactive gas that when it ,.. roc.: ^r Jx-c �[3,,r-. a�{.a. �3,= has accumulated ina building in sufficient quantities,'mayypresent health risks to persons;who are exposi - °Radon that exceed federal and state have been- found in ed to it over¢time. vels of ° � �� r� ` rx buildings in Florida. Additional information regarding radon_:,testing{ may be obtained from your County rublic.l-lealth Unit.If f4 =� r f:'0001::.' S_r:d.'a't'{ THIRTY-FIRST: HAZARDOUS SUBSTANCES-GENERAL: The term "Hazardous Substances," as used in this lease shall mean pollutants, contaminants, toxic or hazardous wastes, or any other substances the use and/or the removal of which is required of the use of which is restricted, prohibited, penalized by any "Environmental Law", which term shall mean any federal, state or local law, ordinance or other statute of a governmental or quasi-governmental relating pollution or protection of the environment/ tenant hereby agrees that (I) no activity will be conducted on the premises that will produce any Hazardous Substances, except for such activities that are part of the ordinary course of tenant's business activities (the "permitted Activities") provided said Permitted Activities are conducted in accordance with all Environmental Laws. Tenant shall be responsible for obtaining any required permits and paying any fees and providing any testing required by any governmental agency in connection with said permitting process: (II) The premises will not be used in any manner for the storage of any Hazardous Substances except for the temporary storage of each materials that are used in the ordinary course of tenant's business (the "Permitted Materials") provided said Permitted Materials are properly stored in a manner and location meeting all Environmental Laws. Tenant shall be responsible for obtaining any required permits and paying less and providing any testing required by any governmental agency (III) no portion of the premises will be used as a landfill or a dup: (IV) Tenant will not install any underground tanks of any type: (V) Tenant will not allow any surface or subsurface conditions to Page 6 of 8 Kohn Commercial Real Estate KQ�H,N PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com exist or come into existence that constitutes or with the passage of time may constitute a public private nuisance: (VI) Tenant will not permit any Hazardous Substances to have brought into the premises, except for the Permitted Materials described below, and if so brought or found located thereon, the same shall be immediately removed, with proper disposal; and all required cleanup procedures shall be diligently undertaken pursuant to all Environmental Laws. Landlord of landlord's representative shall have the right but not the obligation to enter the premises for the purpose of inspecting the storage; use and disposal of Permitted Materials are to ensure compliance with all Environmental Law. Should it be determined, in tenant's sole opinion, that said Permitted Materials are being improperly stored, used, or disposed of, then tenant shall immediately take such corrective action as requested by Landlord. Should tenant fail to take such corrective action within thirty (30) days, landlord shall immediately take such corrective action as may be required. Should tenant fail to take such corrective action, tenant shall pay any and all cost associated with said corrective action. If at any time during or after the term of this lease, the premises is found to be so contaminated as a result of tenant's sole negligence in connection with the storing, using or disposing of Permitted Materials (Tenant's Contamination), tenant shall diligently institute proper and thorough cleanup procedures, and to the extent allowable, and subject to the limitation on the tenant's liability, a set forth in Section 768.28, Florida Statutes, tenant agrees to pay the costs associated with Tenant's Contamination. To the extent allowable, and subject to the limitation on the tenant's liability, as set forth in Section 768.28, Florida Statutes, tenant agrees to indemnify and hold landlord harmless from all claims, demand, actions, liabilities, costs, expenses, damages and obligations or any nature arising from or as a result of the use of the premises by tenant. The foregoing indemnification and the responsibilities of tenant shall survive the termination or expiration of this lease. Nothing contained in this Section Thirty-One shall be construed as a waiver of sovereign immunity by tenant. THIRTY-SECOND: ENTIRE AGREEMENT: The foregoing constitutes the entire agreement between the parties and may be modified only in writing signed by both parties. The following Exhibits, if any, have been made part of this lease before the parties' execution hereof: IN WITNESS WHEREOF, the parties have hereunto executed this instrument for the purpose herein expressed, the day and year above written. Landlord: Witness: By: By: By: Tenant: Witness: By: By: By: Page 7 of 8 Kohn Commercial Real Estate �KO H N PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com Exhibit"A" BASELINE REPAIRS REQUIRED TO BE PERFORMED BY LANDLORD PRIOR TO LEASE COMMENCEMENT On or before the commencement date of the lease, landlord shall perform the following baseline repairs to the premises: • Alley(North side) -Clean up all debris and add/repair security bars on the northwest corner of lot. • Fence- Eliminate center gate doors and replace with fencing and barb wire along the top. • Parking Area East side- Remove all debris/weeds/gravel. Remove section of I-beam that is uplifted and bent. • Interior-Secure all windows with security bars/replace broken and/or missing glass. • Restrooms-Ensure that plumbing is working properly. • Light fixtures-Ensure that all fixtures are working properly. • Fire Sprinklers- Ensure that sprinkler system is working properly. • Air Conditioning- Ensure A.C. system is working properly. • North Interior wall- Patch/seal openings(vents) in the north masonry wall. • Electrical System- Ensure that all outlets,switches and panels are working properly. • Exhaust Ceiling Fan- Install security bars and ensure fan is working properly. • Overhead Doors(2)- Install electric motors so that the doors can be opened automatically from the outside, instead of manually. Page 8 of 8