Loading...
Lease Agreement with Jaller Grossman Partnership LLC 020 /5-- 07 90 3 7 11 Kohn Commercial Real Estate �K� �OMiN1ERH� Pa Box 331858 REAL ESTATE Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com LEASE AGREEMENT THIS LEASE AGREEMENT (lease or contract) entered into this 2 day of June, 2015 (Effective Date) by and between Jailer Grossman Partnership LLC, a lorida 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 at 6700 NW 36 Avenue, in Miami, State of Florida (premises), to be used and occupied by the lessee as office, warehouse, storage use (including, without limitation, storage of vehicles, containers, other personal property or evidence relating to criminal investigations, 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 September, 2020, at and for the agreed rental of Four Hundred Three Thousand and 00/100 Dollars ($403,000.00) payable as follows: Months 1-12: August 1, 2015 - July 31, 2016 - $6,500.00 per month Months 13-24: August 1, 2016 - July 31, 2017 - $6,500.00 per month Months 25-36: August 1, 2017 - July 31, 2018 - $6,500.00 per month Months 37-48: August 1, 2018 - July 31, 2019 - $6,500.00 per month Months 49-60: August 1, 2019 - July 31, 2020 - $6,500.00 per month Months 61-62: August 1, 2020— September 30, 2020 - $6,500.00 per month Landlord acknowledges that tenant is a municipal corporation organized under the laws of the State of Florida and, as such, is exempt from payment of sales taxes in connection with the rental payments due under this lease. Tenant shall have two (2) renewal options for a term of five (5) years each, 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 first renewal term (October 1, 2020 through September 30, 2025) shall be subject to a one (1) time adjustment at the commencement of the first year of the first renewal term and thereafter remain fixed throughout the remainder of the first renewal term. The rental for the first renewal term shall be calculated by adding the base rental amount of $90,000 per year ($7,500 per month) (base rent) 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 taxes assessed against the premises for the year 2015 were $10,000 and the amount of real estate taxes assessed against the premises for the year 2020 were $17,500, the real estate tax increase would total $7,500, and the rent for the renewal term would be $97,500 per year($8,125 per month). The rental for the second renewal term (October 1, 2025 through September 30, 2030) shall be subject to a one (1) time adjustment at the commencement of the first year of the second renewal Page 1 of 9 '1 Kohn Commercial Real Estate ®n HN PO Box 331858 R TAE Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com term and thereafter remain fixed throughout the remainder of the second renewal term. The rental rate for the second renewal term shall be calculated by adding a new base rent plus the real estate tax increase which occurred between real estate tax year 2020 and 2025. The base rent for the second renewal term shall be equal to ninety percent (90%) of the market rental rates (as determined for space comparable to the premises within one (1) mile from the location of the premises, as of October 1, 2025); however, notwithstanding the foregoing, if the rental rate for the tenth (10th) year exceeds ninety percent (90%) of the market rental rate for the premises as of October 1, 2025, the base rent shall be equal to one hundred percent (100%) of the market rental rate. The real estate tax increase shall be determined in the same manner as the real estate tax increase was determined for the first renewal term, by subtracting the amount of the real estate taxes assessed during the real estate tax year 2020 from the amount of real estate taxes assessed against the premises for the real estate tax year 2025). 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, 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 the 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. Any work or modification to the premises, which may be required in connection with securing the requisite licenses and certificates of occupancies, shall be the responsibility of the landlord. 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 Page 2 of 9 97 y Kohn Commercial Real Estate PO Box 331858 k. �1 REAL ESTATE Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com 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 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 additional rent. NINTH: ASSIGNMENT FURNITURE & FIXTURE. DELETED TENTH: LATE FEES. Lessee shall be required to pay lessor a late fee equal to five percent (5%) of any rental payments due, that remains unpaid for ten (10) days after its due date. ELEVENTH: INSURANCE PROPERTY TAX. Landlord shall be responsible for payments of the Real Property Taxes assessed against the demised premises, and for building insurance. Landlord agrees that it will keep in force during the term of this lease, a landlords only liability policy. (Landlord will not be providing protection for Tenant's trade fixtures, furnishings, personal property or improvements providing protection against any perils including within the classification of fire, lightning and windstorm). Page 3 of 9 3 �? Kohn Commercial Real Estate s9 ML! PO Box 331858 REAL ESTATE Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com 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. 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 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 during the term of their occupancy in their fiduciary capacity without affecting lessor's rights as contained in this contract, but no receiver, trustee or other judicial officer shall have any right, title or interest in or to the above described property by virtue of this contract. SIXTEENTH: BROKERAGE. Lessor shall be responsible for the payment of the commission due Kohn Commercial Real Estate. Each party warrants and represents that he or it has dealt with no broker other than Kohn Commercial Real Estate in connection with this lease. Each party shall be responsible to the other for any claims, demands, judgments actions causes of actions, negligence, and/or damages, including reasonable attorney's fees and suit costs in the event that any person or entity, other than Kohn Commercial Real Estate, claims to have dealt with said party and claims to be entitled to a commission 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. Page 4 of 9 Kohn Commercial Real Estate �AKe N PO Box 331858 111, REAL ESTTE Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com 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, at 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. Either party may change the address for notification purposes by providing written notification to the other party of the new address. 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 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 excepted. 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 Page 5 of 9 r Kohn Commercial Real Estate KP k ! PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com 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 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. 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 (provided, however, that if such default reasonably requires more than (30) thirty days to cure, landlord should have a reasonable time to cure such default, provided landlord commences to cure within such (30) days period and thereafter diligently prosecute such cure to completion). TWENTY-NINTH: SUBORDINATION. This lease is and shall be subordinated to all existing and future liens and encumbrances against the property. THIRTIETH: RADON GAS. In accordance with the requirement of Florida Statutes Section 404.56 (8) the following notice is hereby given: Radon is a naturally occurring radioactive gas that, when it has 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 have been found in buildings in Florida. Additional information regarding radon testing may be obtained from your County Public Health Unit. Page 6 of 9 Kohn Commercial Real Estate PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com 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. (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. (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 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: Page 7 of 9 Kohn Commercial Real Estate ISPI! L PO Box 331858 Miami, FL 33233-1858 D.305.794.6704 www.kohncommercial.com IN WITNESS WHEREOF, the parties have hereunto executed this instrument for the purpose herein expressed, the day and year above written. Landlord: Jailer Grossman Partnership LLC Witness: • By: /1 By. I j Print Name: r (iddriel Print Name: 710 /4) Position: C l . eAt By: w ek) li Print Name: k Con C Gjct , 019() Tenant: City of f i ,e .ch, Florida Witness: By: �� ,��� By: / / Philip' e Mayor afael E. Granado, city Clerk / f By: Print ame: b/, rd V APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Attorney "3 Date / - F:ATTO/TORG/ASSET/MiamiBeachPoliceDepartment/KCRELease-Goldring-MBPD-6700NW36STFina16262015 Page 8 of 9 7 Kohn Commercial Real Estate UM 11PO 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. • Wood Replacement— Remove or replace rotten wood panel backboards at the south end of the west wall. Page 9 of 9