2016-29306 Reso RESOLUTION NO. 2016-29306
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 RK 946-966 NORMANDY, LLC,
AS LANDLORD, FOR USE OF APPROXIMATELT 1,800 RENTABLE SQUARE
FEET OF PROPERTY, LOCATED AT 962-964 NORMANDY DRIVE, MIAMI
BEACH, FLORIDA, TO BE USED AS ADMINISTRATIVE OFFICES FOR THE
CITY'S BUILDING DEPARTMENT; SAID LEASE AGREEMENT HAVING AN
INITIAL TERM OF FIFTY (58) MONTHS, COMMENCING ON MARCH 1, 2016,
AND ENDING ON DECEMBER 31, 2020, WITH TWO (2) THREE (3) YEAR
RENEWAL OPTIONS, AT THE CITY'S OPTION; AND UPON SUCCESSFUL
NEGOTIATIONS, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
SAID LEASE AGREEMENT.
WHEREAS, in an effort to become more customer friendly and reduce vehicles on City
roadways, the Administration has continued to seek ways to bring City services closer to residents
and property owners particularly in the North Beach area; and
WHEREAS, the Administration has continued to search for ways to locate a City Building
Department satellite office at the northern end of the City to service North Beach and parts of Mid
Beach; and
WHEREAS, such an office would allow for residents and business owners to apply for building
permits closer to their homes or businesses allowing these customers to avoid getting in their
vehicles for what can be a 20-30 minute drive to City Hall; and
WHEREAS, the criteria established by the Administration for the required office space
included the following: 1) approximately 2,000 rentable square feet, 2) an existing -buildout which
met the needs of the Building Department and would enable a quick occupancy, 3) fair market
terms & conditions and 4) a North Beach location in close proximity to Normandy Drive / 71st
Street; and
WHEREAS, the Administration negotiated terms and conditions for a lease, between the City
and 946-966 Normandy, LLC, a Florida limited liability company (Landlord), containing the
following proposed lease terms:
TENANT: City of Miami Beach
LANDLORD: RK 946-966 NORMANDY, LLC
PREMISES: 962-964 Normandy Drive
Miami Beach, Florida 33141
SIZE: Approximately 1,800 rentable square feet
TERM: fifty-eight(58) months
RENT ABATEMENT: Three (3) months
r
LEASE
COMMENCEMENT DATE: March 1, 2016
LEASE
EXPIRATION DATE: December 31, 2020
INITIAL BASE RENT: $29.00 per square foot ($52,200 annually; $4,350 monthly) on a
triple net(NNN) basis.
BASE RENT INCREASES: Three percent (3%) annual increases commencing January 1,
2017.
RENEWAL OPTIONS: Tenant shall have two (2) renewal options for three (3) years each,
at the Tenant's option. The Base Rent during the renewal
period(s) shall be increased by three percent (3%) annually.
OPERATING EXPENSES: In addition to Base Rent, Tenant shall pay its pro rata share of
maintenance, insurance and real estate taxes which are estimated
at $4.67 PSF in 2016. Increases in controllable Operating
Expenses shall be -capped at no more than five percent (5%)
above the previous year.
TENANT
IMPROVEMENTS: Tenant to accept the Premises in "as-is" condition.
SECURITY DEPOSIT: None
USE: Administrative offices; 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 946-966 Normandy, LLC, as Landlord, for use of approximately
1,800 rentable square feet of property, located at 962-964 Normandy Drive, Miami Beach, Florida,
to be used as administrative offices for the City's Building Department; said lease having an initial
term of fifty-eight (58) months', commencing on March 1, 2016, and ending on December 31, 2020,
with two (2) three (3) year renewal options, at the City's option; and upon successful negotiations,
authorize the Mayor and City Clerk to execute said lease agreement.
PASSED and ADOPTED this /0 day of F e r'u4 2016.
ATTEST: '•��.`iiven�lk��%b
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R' AEL E. GRA`� 'D., C :► PHILIP-L'EV. °� MAYOR
I:\AGENDA\2016\Februv rpr ED\°:2 No -nd \9•- Npr a ✓RESO(Final-),00cx y
INCORP ORATED: ' APPROVED AS TO
�`� '• i ; FORM & LANGUAGE
FOR E ECUTION
-41:1- CH 26 -e , / -CI Attorney .;., Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Approving And Authorizing The Administration To Negotiate A Lease Agreement Between The City, As
Tenant, and RK 946-966 Normandy, LLC, As Landlord, For The Use Of Approximately 1,800 Rentable Square Feet Of
Property, Located At 962-964 Normandy Drive, Miami Beach, Florida, For The City's Building Department, For An Initial
Term Of Fifty-Eight (58) Months, Commencing March 1, 2016 And Ending December 31, 2020, With Two (2) Renewal
Options For Three (3) Years Each, 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:
In an effort to become more customer friendly and reduce vehicles on City roadways, the Administration has continued to
seek ways to bring City services closer to residents and property owners particularly in the North Beach area. With this in
mind, the Administration has continued to search for ways to locate a Building Department satellite office in the northern
end of the City to service North Beach and parts of Mid Beach. Such an office would allow for residents and business
owners to apply for building permits closer to their homes or businesses allowing these customers to avoid getting in their
vehicles for what can be a 20-30 minute drive to City Hall.
The criteria established by the Administration for the required office space included the following: 1) approximately 2,000
rentable square feet, 2) an existing buildout which met the needs of the Building Department and would enable a quick
occupancy, 3) fair market terms & conditions and 4) a North Beach location in close proximity to Normandy Drive/ 71st
Street.
Subsequently, the Office of Real Estate negotiated terms and conditions for a new lease at 962-964 Normandy Drive.
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:
SIZE: Approximately 1,800 rentable square feet
TERM: Fifty-eight(58)months
RENT ABATEMENT: Three(3)months
COMMENCEMENT DATE: March 1, 2016
EXPIRATION DATE: December 31,2020
RENEWAL OPTIONS: Two(2) renewal options for three(3)years each, at Tenant's option.
INITIAL BASE RENT: $29.00 per square foot ($52,200 annually; $4,350 monthly) on a triple net (NNN)
basis.
BASE RENT INCREASES: Three percent(3%)annually commencing January 1,2017
OPERATING EXPENSES: In addition to Base Rent, Tenant shall pay its pro rata share of maintenance,
insurance and real estate taxes.
TENANT IMPROVEMENTS: Tenant to accept the Premises in"as-is"condition
The Administration recommends that the Mayor and City Commission adopt the Resolution.
Advisory Board Recommendation:
N/A
Financial Information:
Amount Account
Source of Funds: 1 $61,357 Building Department Fund Balance subject to a future
(first 12 month's Budget amendment.
Gross Rent) Funding for future years is subject to budget appropriation.
Financial Impact Summary: The Base Rental Rate is $29.00 PSF, triple net, with three percent (3%) annual increases
commencing January 1, 2017, and Operating Expenses estimated at$4.67 PSF during Year 1. Over the initial fifty-eight
(58) month term of the lease,the aggregate Gross Rent is projected to be$285,059.
City Clerk's Office Legislative Tracking:
Max Sklar, ext.6116
Sign-Offs:
Department Director Assistant Ci Ai,anager City M na.er
MAS KGB JL
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MIAMIBEACH
AGENDA ITEM R e7 R
DATE 2-10-1(4,
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members �� the City C,.mmission
FROM: Jimmy L. Morales, City Manager ,
DATE: February 10, 2016
SUBJECT: A RESOLUTION OF THE MAYOR A ND 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 RK 946-966
NORMANDY, LLC, AS LANDLORD, FOR USE OF
APPROXIMATELT 1,800 RENTABLE SQUARE FEET OF
PROPERTY, LOCATED AT 962-964 NORMANDY DRIVE, MIAMI
BEACH, FLORIDA, TO BE USED AS ADMINISTRATIVE
OFFICES FOR THE CITY'S BUILDING DEPARTMENT; SAID
LEASE AGREEMENT HAVING AN INITIAL TERM OF FIFTY (58)
MONTHS, COMMENCING ON MARCH 1, 2016, AND ENDING
ON DECEMBER 31, 2020, WITH TWO (2) THREE (3) YEAR
RENEWAL OPTIONS, 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
In an effort to become more customer friendly and reduce vehicles on City roadways, the
Administration has continued to seek ways to bring City services closer to residents and
property owners particularly in the North Beach area. With this in mind, the
Administration has continued to search for ways to locate a Building Department satellite
office in the northern end of the City to service North Beach and parts of Mid Beach.
Such an office would allow for residents and business owners to apply for building
permits closer to their homes or businesses allowing these customers to avoid getting in
their vehicles for what can be a 20-30 minute drive to City Hall.
By Florida Statutes, permit fees collected for building permit fees must be utilized to
cover costs incurred by the department in providing services. In the past year, the
Commission Memorandum
New Lease Agreement-Building Department
February 10, 2016
Page 2 of 3
Building Department has seen permit revenues that have exceeded budgeted amounts
leaving funds sufficient enough to investigate the purchase of property for a satellite
office as suggested above.
The Administration identified a site for sale, located at 6961 Indian Creek Drive,
consisting of approximately 1,448 square feet. The Administration pursued a
purchase of this site but it was determined the cost to modify the building to suit
the needs of the Building Department was prohibitive.
The Administration also pursued a lease of a space, located at 1250 Normandy
Drive, consisting of approximately 3,925 square feet. The Administration
determined, due to the large size, and high asking rent ($45.00 PSF Triple Net),
the space was also cost prohibitive.
Accordingly, the Administration continued its search for office space.
ANALYSIS
The criteria established by the Administration for the required office space
included the following: 1) approximately 2,000 rentable square feet, 2) an existing
buildout which met the needs of the Building Department and would enable a
quick occupancy, 3) fair market terms & conditions and 4) a North Beach location
in close proximity to Normandy Drive /71st Street.
Subsequently, the Office of Real Estate negotiated terms and conditions for a
new lease at 962-964 Normandy Drive. 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: RK 946-966 NORMANDY, LLC
PREMISES: 962-964 Normandy Drive
Miami Beach, Florida 33141
SIZE: Approximately 1,800 rentable square feet
TERM: Fifty-eight (58) months
RENT ABATEMENT: Three (3) months
LEASE
COMMENCEMENT DATE: March 1, 2016
LEASE
Commission Memorandum
New Lease Agreement—Building Department
February 10, 2016
Page 3 of 3
EXPIRATION DATE: December 31, 2020
INITIAL BASE RENT: $29.00 per square foot ($52,200 annually; $4,350
monthly) on a triple net (NNN) basis.
BASE RENT INCREASES: Three percent (3%) annual increases commencing
January 1, 2017.
RENEWAL OPTIONS: Tenant shall have two (2) renewal options for three
(3) years each, at the Tenant's option. The Base
Rent during the renewal period(s) shall be increased
by three percent (3%) annually.
OPERATING EXPENSES: In addition to Base Rent, Tenant shall pay its pro
rata share of maintenance, insurance and real
estate taxes which are estimated at $4.67 PSF in
2016. Increases in controllable Operating Expenses
shall be capped at no more than five percent (5%)
above the previous year.
TENANT
IMPROVEMENTS: Tenant to accept the Premises in "as-is" condition.
SECURITY DEPOSIT: None
USE: Administrative offices
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 RK 946-966 NORMANDY, LLC, for
approximately 1,800 rentable square feet of space, located at 962-964 Normandy
Drive, Miami Beach, Florida; and upon successful negotiations, subject to Legal
review and approval, authorizing the Mayor and City Clerk to execute said lease
agreement.
J L M/K B/MAS//M M
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