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98-22862 RESO RESOLUTION NO: 98-22862 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY AND GLORIA MILLER ROSENTHAL FOR THE PROPERTY LOCATED AT 1833 BAY ROAD, MIAMI BEACH, FLORIDA, AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID AMENDMENT; SAID AMENDMENT, IN PART, INCREASING THE TOTAL NUMBER OF SQUARE FEET INCLUDED IN THE LEASED PREMISES AND THE TOTAL AMOUNT OF RENT DUE WHEREAS, on January 21, 1998, the Mayor and City Commission adopted Resolution 98-22639, approving a Lease Agreement for the second floor of the building located at 1833-37 Bay Road (the Property) to house certain off-site operations of the Miami Beach Police Department; and WHEREAS, funding for said Lease was made a available through a Federal H.I.D.T.A. grant which was obtained by the Police Department; and WHEREAS, the Police Department is in need of expanding their existing on site operations and has secured additional grant funds which may be used to lease additional space; and WHEREAS, the first floor space of the Property is available at the same rate as that of the existing leased space and the Police Department has determined that the space would meet their expansion requirements; and WHEREAS, upon review of the existing inventory of available properties that meet the criteria for the proposed use, the Administration determined that leasing the rest of the Property, including the first floor, would provide the most cost effective arrangement, as well as the most desirable location for the intended use. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH that the First Amendment to the Lease Agreement between the City of Miami Beach and Gloria Miller Rosenthal for the Property located at 1833 Bay Road, Miami Beach, Florida, be approved subject to the amendments contained therein and as attached hereto; and the Mayor and City Clerk are herein authorized to execute the attached First Amendment to the Lease Agreement. PASSED AND ADOPTED THIS 9th day of September, 1998. ]i&~~ p~~ CITY CLERK 1111 MAYOR JD:rd APPROVED AS TO FORM & LANGUAGE .~ fOR EXECUT10t-J 1:!~4Y!-5J ~ITY OF MIAMI BEACH ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 :tp:\\cLm iam i-beach. fl. us COMMISSION MEMORANDUM NO. ~~ TO: Mayor Neisen O. Kasdin and Members of the City mmission DATE: September 9,1998 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUT N OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY AND GLORIA MILLER ROSENTHAL FOR THE PROPERTY LOCATED AT 1833 BAY ROAD, MIAMI BEACH, FLORIDA, AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID AMENDMENT; SAID AMENDMENT, IN PART, INCREASING THE TOTAL NUMBER OF SQUARE FEET INCLUDED IN THE LEASED PREMISE AND THE TOTAL AMOUNT OF RENT DUE ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND: On January 21, 1998, the Mayor and City C;ommission adopted Resolution No. 98-22639 approving a Lease Agreement between the City and Gloria Miller Rosenthal for a portion of the property located at 1833 Bay Road (the Property). The leased premises, which includes the second floor of the building (approximately 3000 square feet) and a portion of the rear yard of the Property, has been used to accommodate certain Police Department operations. The Police Department is in need of expanding its existing on site operations. The first floor of the Property is available for lease and the Department has determined that the space would meet their expansion requirements. ANALYSIS The Office of Asset Management and the Police Department have discussed the feasibility of leasing the additional space. Amending the existing Lease Agreement to include the entire building and land area would provide for the most cost effective means of expanding their current operation while keeping it on one site. The rental rate of $12.00 per square foot which is being proposed is well under that of the market rate for similar space which was previously determined to range from $15.00 to $17.00 per square foot. AGENDA ITEM C1A q-q-<1~ continued.... DATE -2- The attached First Amendment to the Lease Agreement is for approximately six thousand (6,000+/-) square feet of interior space, and the whole of the land area including all of the rear yard. The existing Agreement is for approximately three thousand (3000 +/ -) square feet, and a portion of the rear yard. The original lease tenn is for the three-year period commencing on February 1, 1998, and expiring at midnight on January 31,2001. The expiration date will remain the same in the proposed Amendment. The existing annual rental rate is $12.00 per square foot, for a $36,000.00 total annual rent, which is paid on a monthly basis in equal installments of $3,000.00. The proposed annual rental rate remains at $12.00 per square foot, but the total annual rent increases to $72,000.00, or $6,000.00 per month, because of the increase in the amount of leased interior space. Funding to cover the existing Lease has been obtained via a Federal HIDT A (High Intensity Drug Trafficking Area) grant and remains in place. Funding for the additional rent for the period between September 9, 1998, and January 31, 1999, is available from the LETF (Law Enforcement Trust Fund). Additional HIDT A grant monies have been obtained and are available to fund the additional rent from February 1, 1999, through January 31, 2000. Application for this grant will continue on a yearly basis while funding is available. The Lease Agreement contains a provision which allows the City to tenninate the lease with a ninety (90) day notice if the grant is not obtained. The Office of Risk Management and the City Attorney's Office have reviewed and approved the terms of the Lease Agreement with regards to insurance, liability, and legal issues respectively. CONCLUSION: Amending the Lease Agreement to include the whole building and property would provide the most cost-effective arrangement, as well as the most desirable location for expansion of the existing Police Department operations. SR~d T:\AGENDA \SEP0998\CONSENli 1 833AM _ M.HSM 8/28/98 FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND GLORIA MILLER ROSENTHAL This First Amendment to the Lease Agreement dated January 21, 1998, for the property located at 1833 Bay Road, Miami Beach, Florida, between the CITY OF MIAMI BEACH, a Florida Municipal Corporation (City), hereinafter referred to as the "Lessee," and GLORIA MILLER ROSENTHAL, an individual, hereinafter referred to as the "Lessor", is entered into this 9th day of September, 1998, WITNESSETH WHEREAS, on January 21, 1998, the Mayor and City Commission adopted Resolution No. 98-22639, approving a Lease Agreement with Gloria Miller Rosenthal for the lease of a portion of the property located at 1833 Bay Road, Miami Beach, Florida (the Property) for a three (3) year period; and WHEREAS, the Miami Beach Police Department is in need of expanding their existing operations and requires additional space within the Property, NOW, THEREFORE, in consideration of the mutual premises set forth herein, the Lease Agreement is amended as follows: 1. Paragraph 1, entitled "Premises", on Page 1 of the Lease Agreement shall be amended as follows: The Lessor does heTeh)' lease to the Lessee the whole of the sceoftd floor of the building \vhieh meaStlres ftl'l'r6ximately three thousand (3,000 II) sqtlare feet, tlftd a p6rtion me~uring appToximtitel)' 800 square feet (40' x 20') of the "Nestemmost p6rtion of the rear yard and stleh vehieular aeeess tfteret6 ~ may be permitted by the Cit}, of MiBmi Beaeh (the "Yard Arca") The Lessor does hereby lease to the Lessee the whole of the buildin~. including but not limited to the first and second floor. which measures ap.proximately six thousand (6.000+/-) square feet. alon~ with all of the land. including but not limited to all ofthe yard areas in and around the buildinfj. The Lessee fttrther aeknowledges that the Lessor or M6ther Lessee 6f the Pf6pcrt). wherein the Demised Premises is loeated (the "Property") may dttring the term of the Lease take such aetion "Nith the City 6f Miami Beaeh t6 make all 6r a p6rti6n 6f the property to the east 6f the building 6n the Pr61'erty avttilable fur the parking ofychieles and t6 6btttin aecess thereto. In that cveftt, Lessee shall c66perate with Less6r during tm)' restllting c6nstruetion period, and Lessor shml use its best efforts to all6v" Lessee eontifttled use of Md access to the Yard Area during sueh eonstmetion period , allloeated at 1833 thr6tlgh 1837 Bay Road, Miami Beaeh, Fl6rida (le~ed premises), tlftd ~ more partieularl)' described in Exhibit ''/..'' attaehed hereto. PAge 1 of 2 2. Paragraph 3, entitled "Rent", on Page 2 of the Lease Agreement shall be amended as follows: The Lessee agrees to pay to the said Lessor, at the address listed in this Agreement, an annual rental fee of $36,000.00 $72.000.00, to be paid on a monthly basis, in the amount of $3,000.00 $6.000.00 per month, by check. Rent shall become payable on or about the first working day of each month, commencing on Febl'tlftl'y 1, 1998 September 9. 1998, and on the first business day of each successive month until the end of the term of this Agreement, or earlier cancellation. If the Lessee fails to pay any rental payment due hereunder within ten (10) days of the due date there shall be added to such payment a late charge of $50.00. Ifthe rental payments due hereunder are not received within ten (10) days after the normal monthly payment due date, then Lessor shall provide Lessee with a written notice to remedy such default in payment. Upon failure of Lessee to cure such default in payment within three (3) days after receipt from Lessor of such written notice to remedy, Lessor, at its option, may cancel this Agreement and shall have the right to re-enter and re-possess the leased premises. 3. All other terms and conditions of the Lease Agreement between the Lessor and the Lessee shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the Lease Agreement to be executed by their duly authorized officials on the day first above indicated. ATTEST: ~yp~ LESSEE/CITY t ~~~:EACH' FLOIDDA CITY CLERK L~ORlGLOIDA MILLER ROSENTHAL r~~~ Authorized Signatory Name and Title of Signatory SR:HSM:JD:rd T:\AGENDA\SEP0998\CONSEN1\1833AM_A.HSM 9/1/98,1 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1dt ~~iL, City omey 1t!9g ate PAge 2 of 2 LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this 2 lstday of January ,1998, by and between GLORIA MILLER ROSENTHAL, an individual (Lessor) and the CITY OF MIAMI BEACH, a Florida municipal corporation (Lessee). WHEREFORE, in consideration of the rent to be paid herein, and further good and valuable consideration, receipt of which is hereby acknowledged, arid the further consideration of the mutual covenants each to the other made as follows: 1. Premises. The Lessor does hereby lease to the Lessee the whole of the second floor of the building which measures approximately three thousand (3,000+/-) square feet, and a portion measuring approximately 800 square feet (40' x 20') of the westernmost portion of the rear yard and such vehicular access thereto as may be permitted by the City of Miami Beach (the "Yard Area") The Lessee understands and acknowledges that the Lessor makes no warranties or representations and Lessee is relying on no such warranties or representations that the Yard Area may be used for parking or storage of vehicles or that there is or will be vehicular access to the Yard Area. The Lessee further acknowledges that the Lessor or another Lessee of the Property wherein the Demised Premises is located (the "Property") may during the term of the Lease take such action with the City of Miami Beach to make all or a portion of the property to the east of the building on the Property available for the parking of vehicles and to obtain access thereto. In that event, Lessee shall cooperate with Lessor during any resulting construction period, and Lessor shall use its best efforts to allow Lessee continued use of and access to the Yard Area during such construction period, all located at 1833 through 1837 Bay Road, Miami Beach, Florida (leased premises), and as more particularly described in Exhibit "A" attached hereto. ....- 2. Term. This Agreement is for the three-year period commencing on February 1, 1998, and expiring at midnight on January 31, 2001. 3. Rent. The Lessee agrees to pay to the said Lessor, at the address listed in this Agreement, an annual rental fee of$36,000.00, to be paid on a monthly basis, in the amount of$3,000.00 per month, by check. Rent shall become payable on or about the first working day of each month, commencing on February 1, 1998, and on the first business day of each successive month until the end of the term of this Agreement, or earlier cancellation. If the Lessee fails to pay any rental payment due hereunder within ten (10) days of the due date there shall be added to such payment a late charge of$50.00. lfthe rental payments due hereunder are not received within ten (10) days after the normal monthly payment due date, then Lessor shall provide Lessee with a written notice to remedy such default in payment. Upon failure of Lessee to cure such default in payment within three (3) days after receipt from Lessor of such written notice to remedy, Lessor, at its option, may cancel this Agreement and shall have the right to re-enter and re-possess the leased premises. 4. Use of the Leased Premises. It is understood and agreed that the leased premises shall be used by the Lessee for the operation, management, business function and direction of the City of Miami Beach Police Department, and for any and all other lawful uses deemed in the Lessee's best interest by the Lessee. 5. Telephone. Lessee shall pay its own cost for telephones it uses and any additional installations it orders. 6. Maintenance and Utilities. The Lessee will pay for the utilities attributable to its use of the leased premises. The Lessee agrees to maintain the leased premises in order and repair, including furnishings, utility service connections on the leased premises and any routine mechanical and electrical rearrangements installed by the Lessee, routine janitorial and 2 ....... custodial service, and other related services necessary to maintain the leased premises in good, safe and sanitary conditions. 7. Structural Alterations by Lessee. The Lessee may not make major structural alterations and/or improvements upon the leased premises without the prior written consent of the Lessor, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, upon execution of this Agreement, Lessor herein agrees to provide hurricane shutters for the leased premises, said shutters to be installed, as required, by Lessee. Such storm shutters to be provided, at a minimum, shall contain a product control approval number from Metropolitan Dade County, and meet all applicable requirements for same under the South Florida Building Code. 8. Destruction of the Leased Premises, In the event that the leased premises shall be damaged, destroyed or otherwise rendered unusable for the purpose of this Agreement and thereby the fulfillment of the Agreement by the parties is rendered impossible, then and thereupon this Agreement shall automatically terminate and Lessor shall take back the premises without the prior written consent of the Lessee. 9. Assi~nment and Subletting. The Lessee shall not assign or otherwise transfer this Agreement nor sublease any portion of the leased premises without the prior written consent of the Lessor. 10. Sigm. Lessee shall assume the cost of any exterior sign. All signs shall be removed by the Lessee upon the expiration of this Agreement at the Lessee's own expense. 11. Lessor's Right of Entry. Except for non-payment of rent, which is separately addressed in Paragraph 3 of this Agreement, the Lessor shall have the right to re-enter and repossess the leased premises and to cancel this Agreement in the event of default by the Lessee of any material covenant or agreement required to be performed by the Lessee, provided the Lessee 3 ..... shall be given the opportunity to cure, Upon the failure of the Lessee to substantially cure such default within sixty (60) days after receipt from the Lessor of a written notice to remedy the default, Lessor shall have the right to re-enter and repossess the leased premises and to cancel this Agreement. 12. Cancellation by the Lessee. In the event that Lessee's specific funding source for payment pursuant to this Agreement is discontinued, the Agreement shall be subject to cancellation by the Lessee, without cause and for convenience, upon the giving of ninety (90)days written notice to the Lessor, of the Lessee's intent to cancel. 13. Liability for Damaee or Injury. The Lessee and its employees, officials or servants shall not be responsible for any damage or injury that may occur to the Lessor, its agents, servants, employees, clients, other Lessees or property from any cause during the period covered by the Agreement; provided that this paragraph shall not apply in the event the damage or injurj is caused by the negligence of the Lessee, its agents, servants and employees. 14. Taxes. Lessor shall be responsible for and pay all Federal, State, and local taxes due upon the leased premises or otherwise arising out of this Agreement. 15. Cancellation upon Purchase. In the event that the parties hereto successfully negotiate a purchase agreement for the leased premises during the term of this Agreement, then this Agreement shall automatically terminate at the closing of such purchase agreement. 16. Notices. It is understood and agreed between the parties hereto that a written notice, correctly addressed to the Lessor as follows: Gloria Miller Rosenthal 1310 East Royal Palm Way Boca Raton, Florida 33432 4 ..... and notice to the Lessee as follows: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33 139 Attn: Jose Damien, Asset Manager with copies to: City Attorney City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 shall constitute sufficient notice to comply with this Agreement. 17. Venue. Venue in any legal proceedings arising by virtue of this Agreement shall be in Dade County, Florida, 18. Limitation of Liability. Lessee shall look solely to Lessor's interest in the leased premises for the satisfaction of any Lessee's rights or remedies or for the collection of a judgement or other judicial process requiring the payment of money by Lessor in the event of any default by Lessor hereunder, no other property or assets of Lessor shall be subject to the levy, execution, judgement or other enforcement procedure for the satisfaction of Lessee's rights or remedies under or with respect to this Agreement, the relationship of Lessor and Lessee hereunder or Lessee's use or occupancy of the leased premises. 19. Entire Aereement. Any amendments, alteration, variation or modification of this Agreement shall only be valid when they have been reduced to writing and duty sign by the authorized officials of the Lessee or the Lessor. 5 -. IN WITNESS WHEREOF, the parties have set their names and assigns hereto the day and year first above mentioned. LESSOR: GLORIA MILLER ROSENTHAL LESSEE: CITY OF MIAMI BEACH k :!:d4~ MAYOR IJ/I! ATTEST: ~p~ CITY CLERK F:\PURC\SALL\ASSETS\1833BA Y\1833BA Y.AGM 12/19/97 APPROVED AS TO FORM & lANGUAGE & fOR execUTIoN ~ 1~'7 6 - EXHIBIT "A" PROPERTY ADDRESS: 1833-37 Bay Road, Miami Beach, Florida LEGAL DESCRIPTION: Lot 10 Block 13 Alton Beach Realty Company Amended Plat Plat Book 9 Page 146 OR 16472-1961 07945 Official Records of Dade County, Florida