2015-29237 Reso RESOLUTION NO. 2015-29237
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 CONSISTENT WITH
THE ESSENTIAL TERMS SET FORTH IN THIS RESOLUTION BETWEEN THE
CITY OF MIAMI BEACH, AS TENANT, AND 1680 COSTA, LLC, AS LANDLORD,
FOR USE OF APPROXIMATELY 3,792 RENTABLE SQUARE FEET OF
PROPERTY, LOCATED AT 1680 MERIDIAN AVENUE, SUITES 401 & 402, MIAMI
BEACH, FLORIDA, TO BE USED AS ADMINISTRATIVE OFFICES FOR THE
CITY'S TRANSPORTATION DEPARTMENT; SAID LEASE AGREEMENT
HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON
JANUARY 1, 2016, AND ENDING ON DECEMBER 31, 2018, WITH ONE (1)
RENEWAL OPTION FOR THREE (3) YEARS, AT THE CITY'S OPTION; AND
UPON SUCCESSFUL NEGOTIATIONS, AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE SAID LEASE AGREEMENT.
WHEREAS, the Transportation Department currently consists of approximately thirteen (13)
employees and all of the staff does not currently fit in the space they occupy within the Public
Works Department; and
WHEREAS, as vacant positions are filled and/or other positions are created, finding office
space for these new employees in existing City facilities is virtually impossible, not to mention they
would not be located with the rest of the department staff; and
WHEREAS, the current space they occupy does not provide an ideal work environment for the
Transportation Department staff; and
WHEREAS, due to the lack of available City-owned office space, the Administration
determined it was necessary to lease office space from a third party landlord; and
WHEREAS, the criteria established by the Administration for the required office space
included the following: 1) approximately 3,000 —4,000 rentable square feet, 2) an existing buildout
which met the needs of the Transportation Department and would enable a quick occupancy, 3)
fair market terms & conditions and 4) close proximity to the City Hall complex; and
WHEREAS, the City's Real Estate Office actively searched for office space which met the
established criteria and, due to the importance of being located in close proximity to the City Hall
complex, the search was focused on three (3) multi-tenant office buildings located at the corner of
17th Street and Meridian Avenue; and
WHEREAS, after touring several spaces, and receiving multiple proposals, the Administration
determined the space which best meets the established criteria is located in the Meridian Center,
at 1680 Meridian Avenue, and contains approximately 3,792 rentable square feet; and
WHEREAS, the Administration negotiated terms and conditions for a three (3) year lease,
between the City and Landlord, containing the following proposed lease terms:
TENANT: City of Miami Beach
LANDLORD: 1680 Costa, LLC
PREMISES: 1680 Meridian Avenue, Suites 401 &402
Miami Beach, Florida 33139
SIZE: Approximately 3,792 rentable square feet
TERM: Three (3) Years
LEASE
COMMENCEMENT DATE: January 1, 2016
LEASE
EXPIRATION DATE: December 31, 2018
RENEWAL OPTIONS: Tenant shall have one (1) renewal option for three (3) years, at the
Tenant's option, at fair market rent.
INITIAL BASE RENT: $42.00 per square foot ($159,264 annually; $13,272 monthly) Full
Service Gross
BASE RENT INCREASES: Three percent (3%) annually
OPERATING EXPENSES: Tenant shall pay its pro rata share of maintenance, insurance and
real estate taxes in excess of a 2016 base year. Increases in
controllable Operating Expenses shall be capped at no more than
five percent (5%) above the previous year.
TENANT
IMPROVEMENTS: Landlord will provide an allowance of $12.00 per rentable square
foot to be used towards improvements to the Premises.
SECURITY DEPOSIT: None
USE: Administrative offices for the Transportation Department; and
WHEREAS, the Administration recommends that the City Commission approve and authorize
the Administration to negotiate a lease agreement, based upon the essential terms set forth in this
Resolution.
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 between the City
of Miami Beach, as Tenant, and 1680 Costa, LLC, as Landlord, for use of approximately 3,792
rentable square feet of property, located at 1680 Meridian Avenue, Suites 401 & 402, Miami
Beach, Florida, to be used as administrative offices for the City's Transportation Department; said
lease having an initial term of three (3) years, commencing on January 1, 2016, and ending on
December 31, 2018, with one (1) renewal option for three (3) years, at the City's option; and upon
successful negotiations, authorize the Mayor and City Clerk to execute said lease agreement.
PASSED and ADOPTED this q day of be atmh-e-C 2015.
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission, Approving And Authorizing The Administration To Negotiate A Lease
Agreement Between The City, As Tenant, and 1680 Costa, LLC, As Landlord, For The Use Of Approximately 3,792
Rentable Square Feet Of Property, Located At 1680 Meridian Avenue, Suites 401 & 402, Miami Beach, Florida, For The
City's Transportation Department, For An Initial Term Of Three (3) Years, Commencing January 1, 2016 And Ending
December 31, 2018, With One (1) Renewal Option For Three (3) Years, At The City's Option; And Upon Successful
Negotiations,Authorizing The Mayor And City Clerk To Execute Said Lease Agreement.
Key Intended Outcome Supported:
N/A
Supporting Data(Surveys, Environmental Scan,etc.):
N/A
Item Summary/Recommendation:
The Transportation Department currently consists of approximately thirteen (13) employees and all of the staff does not
currently fit in the space they occupy within the Public Works Department. As vacant positions are filled and/or other
positions are created, finding office space for these new employees in existing City facilities is virtually impossible, not to
mention they would not be located with the rest of the department staff. Due to the lack of available City-owned office
space,the Administration determined it was necessary to lease office space from a third party landlord.
The criteria established by the Administration for the required office space included the following: 1)approximately 3,000—
4,000 rentable square feet, 2) an existing buildout which met the needs of the Transportation Department and would
enable a quick occupancy, 3) fair market terms & conditions and 4) close proximity to the City Hall complex. It was of
particular importance to identify space in close proximity to the City Hall complex in order to allow the employees to utilize
parking in the City Hall parking garage and 17th Street parking garage.
The City's Real Estate Office actively searched for office space which met the established criteria. Due to the importance
of being located in close proximity to the City Hall complex, the search was focused on three (3) multi-tenant office
buildings located at the corner of 17th Street and Meridian Avenue. After touring several spaces, and receiving multiple
proposals, the Administration determined the space which best meets the established criteria is located in the Meridian
Center, at 1680 Meridian Avenue, and contains approximately 3,792 rentable square feet.
A summary of the proposed lease terms are as follows:
SIZE: Approximately 3,792 rentable square feet
TERM: Three(3)Years
COMMENCEMENT DATE: January 1, 2016
EXPIRATION DATE: December 31,2018
RENEWAL OPTIONS: Tenant shall have one(1)renewal option for three(3)years,at Tenant's option.
INITIAL BASE RENT: $42.00 per square foot($159,264 annually; $13,272 monthly) Full Service Gross
BASE RENT INCREASES: Three percent(3%)annually
TENANT IMPROVEMENTS: Landlord will provide an allowance of $12.00 per rentable square foot to be used
P P q
towards improvements to the Premises.
The Administration recommends that the Mayor and City Commission adopt the Resolution approving and authorizing the
Administration to negotiate a lease agreement between the City and 1680 Costa, LLC for approximately 3,792 rentable
square feet at 1680 Meridian Avenue, Suites 401 &402, Miami Beach, Florida; and upon successful negotiations, subject
to Legal review and approval, authorizing the Mayor and City Clerk to execute said lease agreement.
Advisory Board Recommendation:
N/A
Financial Information:
Amount Account
So rce of s:' 1 $120,000 FY 2015/16 Fund 106.9615.000349
A'1' Funding for future years is subject to budget appropriation.
9
Financial I pact Summary: The Base Rental Rate is $42.00 PSF, Full Service Gross, with three percent (3%) annual
increases. Over the initial three(3)year term of the lease,the aggregate Base Rent amounts to$479,536.
City Clerk's Office Legislative Tracking:
Max Sklar, ext. 6116
Sign-Offs: J
Departm w're for Assistant Cit y anager City M-; ..er
MAS r t � KGB /,_//. JLM "I
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MIAMIBEACH AGENDA ITEM R 7 "1
DATE I2 S
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION M MORANDUM
TO: Mayor Philip Levine and Members 'of the City S;•mmission
IL
FROM: Jimmy L. Morales, City Manager
DATE: December 9, 2015
SUBJECT: 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 CONSISTENT WITH THE ESSENTIAL
TERMS SET FORTH IN THIS RESOLUTION BETWEEN THE
CITY OF MIAMI BEACH, AS TENANT, AND 1680 COSTA, LLC,
AS LANDLORD, FOR USE OF APPROXIMATELY 3,792
RENTABLE SQUARE FEET OF PROPERTY, LOCATED AT 1680
MERIDIAN AVENUE, SUITES 401 & 402, MIAMI BEACH,
FLORIDA, TO BE USED AS ADMINISTRATIVE OFFICES FOR
THE CITY'S TRANSPORTATION DEPARTMENT; SAID LEASE
AGREEMENT HAVING AN INITIAL TERM OF THREE (3)
YEARS, COMMENCING ON JANUARY 1, 2016, AND ENDING
ON DECEMBER 31, 2018, WITH ONE (1) RENEWAL OPTION
FOR THREE (3) YEARS, AT THE CITY'S OPTION; AND UPON
SUCCESSFUL NEGOTIATIONS, AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE SAID LEASE AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The Transportation Department currently consists of approximately thirteen (13)
employees and all of the staff does not currently fit in the space they occupy
within the Public Works Department. As vacant positions are filled and/or other
positions are created, finding office space for these new employees in existing
City facilities is virtually impossible, not to mention they would not be located with
the rest of the department staff. The current space they occupy does not provide
an ideal work environment for the Transportation Department staff. Due to the
lack of available City-owned office space, the Administration determined it was
necessary to lease office space from a third party landlord.
Commission Memorandum
New Lease Agreement— Transportation Department
December 9, 2015
Page 2 of 3
ANALYSIS
The criteria established by the Administration for the required office space
included the following: 1) approximately 3,000 —4,000 rentable square feet, 2) an
existing buildout which met the needs of the Transportation Department and
would enable a quick occupancy, 3) fair market terms & conditions and 4) close
proximity to the City Hall complex. It was of particular importance to identify
space in close proximity to the City Hall complex in order to allow the employees
to utilize parking in the City Hall parking garage and 17th Street parking garage.
The City's Real Estate Office actively searched for office space which met the
established criteria. Due to the importance of being located in close proximity to
the City Hall complex, the search was focused on three (3) multi-tenant office
buildings located at the corner of 17th Street and Meridian Avenue. After touring
several spaces, and receiving multiple proposals, the Administration determined
the space which best meets the established criteria is located in the Meridian
Center, at 1680 Meridian Avenue, and contains approximately 3,792 rentable
square feet.
Subsequently, the Office of Real Estate negotiated terms and conditions for a
three (3) year lease. Prior to execution, the fully negotiated lease agreement
shall be subject to Legal review and approval.
A summary of the proposed lease terms are as follows:
TENANT: City of Miami Beach
LANDLORD: 1680 Costa, LLC
PREMISES: 1680 Meridian Avenue, Suites 401 & 402
Miami Beach, Florida 33139
SIZE: Approximately 3,792 rentable square feet
TERM: Three (3) Years
LEASE
COMMENCEMENT DATE: January 1, 2016
LEASE
EXPIRATION DATE: December 31, 2018
RENEWAL OPTIONS: Tenant shall have one (1) renewal option for three
(3) years, at the Tenant's option, at fair market rent.
INITIAL BASE RENT: $42.00 per square foot ($159,264 annually; $13,272
monthly) Full Service Gross
Commission Memorandum
New Lease Agreement— Transportation Department
December 9, 2015
Page 3 of 3
BASE RENT INCREASES: Three percent (3%) annually
OPERATING EXPENSES: Tenant shall pay its pro rata share of maintenance,
insurance and real estate taxes in excess of a 2016
base year. Increases in controllable Operating
Expenses shall be capped at no more than five
percent (5%) above the previous year.
TENANT
IMPROVEMENTS: Landlord will provide an allowance of $12.00 per
rentable square foot to be used towards
improvements to the Premises.
SECURITY DEPOSIT: None
USE: Administrative offices for the Transportation
Department
By comparison, on October 14, 2015, the City Commission approved a lease
agreement with Care Resource for approximately 2,000 square feet of office
space at 1701 Meridian Avenue at a gross rental rate of $40.46 per rentable
square foot.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the
Resolution approving and authorizing the Administration to negotiate a lease
agreement, between the City and 1680 Costa, LLC, for approximately 3,792
rentable square feet of space, located at 1680 Meridian Avenue, Suites 401 &
402, Miami Beach, Florida; and upon successful negotiations, subject to Legal
review and approval, authorizing the Mayor and City Clerk to execute said lease
agreement.
JLM/ B/ .; /
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