Resolution 2019-30732 RESOLUTION NO. 2019-30732
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, A RESOLUTION OF THE MAYOR
AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
ACCEPTING THE RECOMMENDATION OF THE FINANCE AND
CITYWIDE PROJECTS COMMITTEE (FCWPC), AND AUTHORIZING
THE CITY MANAGER TO NEGOTIATE A NEW LEASE AGREEMENT
BETWEEN THE CITY, AS TENANT, AND 1680 COSTA, LLC, AS
LANDLORD, FOR USE OF APPROXIMATELY 4,814 SQUARE FEET OF
OFFICE SPACE, LOCATED AT 1680 MERIDIAN AVENUE, SUITES 203
& 602, MIAMI BEACH, FLORIDA, TO BE USED AS ADMINISTRATIVE
OFFICES FOR THE CITY'S CODE COMPLIANCE DEPARTMENT; SAID
LEASE AGREEMENT HAVING AN INITIAL TERM OF SIXTY-THREE
(63) MONTHS, COMMENCING APRIL 1, 2019, AND ENDING JUNE 30,
2024, WITH TWO (2) RENEWAL TERMS OF THREE (3) YEARS EACH,
AT THE CITY'S OPTION, WITH AN ANNUAL RENTAL PAYMENT IN
THE AMOUNT OF $211,772 FOR THE FIRST YEAR, AND
THEREAFTER SUBJECT TO ANNUAL BASE RENT ESCALATIONS OF
THREE PERCENT (3%) FROM THE PREVIOUS YEAR, PLUS
INCREASES ABOVE THE BASE YEAR OF THE CITY'S
PROPORTIONATE SHARE OF THE TAXES, INSURANCE AND
COMMON AREA MAINTENANCE; AND FURTHER AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED
LEASE AGREEMENT.
WHEREAS, the Code Compliance Department currently occupies approximately
5,600 square feet in the 555 17tn Street building and the Housing and Community
Services/Homeless Outreach Department currently occupies approximately 4,300
square feet and in order to facilitate the development of the Miami Beach Convention
Center Hotel at this location, both departments must be relocated to alternate
accommodations; and
WHEREAS, the Administration is currently pursuing alternatives for the Housing
and Community Services/Homeless Outreach Department within the City Hall complex,
however, due to the large number of Code Compliance employees (approximately 60),
there is not adequate space within any City-owned buildings; and
WHEREAS, Staff has identified suitable space in the 1680 Meridian Avenue
building which could be used to relocate Code Compliance, and would allow for parking
at the City Hall parking garage and/or 17th Street parking garage; and
WHEREAS, the City previously leased space in 1680 Meridian Avenue from
2006 to 2012 for the Fire Department and currently leases approximately 3,349 square
feet in 1688 Meridian Avenue for the Transportation Department; and
WHEREAS, the criteria established by the Administration for the required office
space included the following: 1) appropriate size between 4,500 and 5,500 square feet,
2) an existing buildout meeting the needs of the Code Compliance Department and
enabling a quick occupancy, 3) adequate parking and 4) fair market terms and
conditions; and
WHEREAS, the Real Estate Division negotiated with 1680 Costa, LLC the
following essential terms and conditions for a lease at 1680 Meridian Avenue:
SIZE: Approximately 4,814 rentable square feet (approximately
2,583 rentable square feet in Suite 203 and 2,231 rentable
square feet in Suite 602)
TERM: Sixty-three (63) months
RENT ABATEMENT: Three (3) months
LEASE
COMMENCEMENT DATE: April 1, 2019
LEASE
EXPIRATION DATE: June 30, 2024
RENEWAL OPTIONS: Tenant shall have two (2) renewal options for three (3)
years each, at the Tenant's option, at fair market rent.
INITIAL BASE RENT: $44.00 per rentable square foot (estimated to be $211,772
annually; $17,648 monthly)
BASE RENT INCREASES: 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 in excess
of a 2019 base year, which is estimated at $15.21 per
square foot. Increases in controllable Operating Expenses
shall be capped at no more than five percent (5%) above
the previous year. Landlord shall provide building janitorial
service five (5) days per week, electricity, and water.
Landlord shall provide air conditioning during Code's
current hours of operation (approximately 20.7 hours/day).
TENANT
IMPROVEMENTS: Landlord will provide an allowance of $10.00 per rentable
square foot ($48,140) to be used towards improvements to
the Premises. Any unused allowance shall be applied
towards rent.
SECURITY DEPOSIT: None
WHEREAS, at its February 22, 2019 meeting, the Finance and Citywide Projects
Committee (FCWPC) recommended in favor of executing a new lease agreement in
accordance with the negotiated essential terms and conditions; and
WHEREAS, the Administration recommends that the Mayor and City
Commission accept the recommendation of the FCWPC and authorize the City
Manager to negotiate a new lease agreement with 1680 Costa, LLC, for approximately
4,814 square feet of space at 1680 Meridian Avenue, Suites 203 and 602, Miami
Beach, Florida, and upon successful negotiations, subject to Legal review and approval,
authorize the Mayor and City Clerk to execute the final negotiated lease agreement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the Finance and Citywide Projects
Committee (FCWPC), and authorize the City Manager to negotiate a new lease
agreement between the City, as Tenant, and 1680 Costa, LLC, as Landlord, for use of
approximately 4,814 square feet of office space, located at 1680 Meridian Avenue,
Suites 203 & 602, Miami Beach, Florida, to be used as administrative offices for the
City's Code Compliance department; said lease agreement having an initial term of
sixty-three (63) months, commencing April 1, 2019, and ending June 30, 2024, with two
(2) renewal terms of three years each, at the City's option, with an annual rental
payment in the amount of $211,772 for the first year, and thereafter subject to annual
base rent escalations of three percent (3%) from the previous year, plus increases
above the base year of the City's proportionate share of the taxes, insurance and
common area maintenance; and further authorize the Mayor and City Clerk to execute
the final negotiated lease agreement.
PASSED and ADOPTED THIS 13 day of /22a/'G!'1. 2018.
Dan Gelber, Mayor
ATTEST:
21 �
Rafa E. Gra att6, ity C erk
* UNCORP ORATED=
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APPROVED AS TO
FORM & LANGUAGE
& FOR fXECUTION
City Att ey ,�j ate
Resolutions - C7 L
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 13, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING
THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE (FCWPC), AND AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A NEW LEASE AGREEMENT BETWEEN THE CITY, AS
TENANT, AND 1680 COSTA, LLC, AS LANDLORD, FOR USE OF
APPROXIMATELY 4,814 SQUARE FEET OF OFFICE SPACE, LOCATED AT
1680 MERIDIAN AVENUE, SUITES 203 & 602, MIAMI BEACH, FLORIDA, TO
BE USED AS ADMINISTRATIVE OFFICES FOR THE CITY'S CODE
COMPLIANCE DEPARTMENT; SAID LEASE AGREEMENT HAVING AN
INITIAL TERM OF SIXTY-THREE (63) MONTHS, COMMENCING APRIL 1,
2019, AND ENDING JUNE 30, 2024, WITH TWO (2) RENEWAL TERMS OF
THREE (3) YEARS EACH, AT THE CITY'S OPTION, WITH AN ANNUAL
RENTAL PAYMENT IN THE AMOUNT OF $211,772 FOR THE FIRST YEAR,
AND THEREAFTER SUBJECT TO ANNUAL BASE RENT ESCALATIONS
OF THREE PERCENT (3%) FROM THE PREVIOUS YEAR, PLUS
INCREASES ABOVE THE BASE YEAR OF THE CITY'S PROPORTIONATE
SHARE OF THE TAXES, INSURANCE AND COMMON AREA
MAINTENANCE; AND FURTHER AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE FINAL NEGOTIATED LEASE AGREEMENT.
RECOMMENDATION
The Administration recommends that the Mayor and City Commission accept the
recommendation of the FCWPC and adopt the Resolution authorizing the City Manager to
negotiate a new lease agreement between the City and 1680 Costa, LLC, for approximately
4,814 square feet of space, located at 1680 Meridian Avenue, Suites 203 and 602, Miami
Beach, Florida.
BACKGROUND
The Code Compliance Department currently occupies approximately 5,600 square feet in the
555 Meridian Avenue building and the Housing and Community Services/Homeless Outreach
Department currently occupies approximately 4,300 square feet. In order to facilitate the
development of the Miami Beach Convention Center Hotel at this location, both departments
must be relocated to alternate accommodations. Staff is currently pursuing alternatives for the
Page 626 of 1418
Housing and Community Services/Homeless Outreach Department within the City Hall
complex; however, due to the large number of Code Compliance employees (approximately
60), there is not adequate space within any City-owned buildings.
Accordingly, staff toured potential sites in North Beach and near the City Hall complex to identify
space for Code. North Beach proved difficult to identify space with adequate parking as Code
requires approximately 40 parking spaces at any one time for employees, plus an additional 40
parking spaces for City-owned vehicles. Staff also toured third party office buildings, near the
City Hall complex, across Meridian Avenue and 17th Street. The City previously leased space
in 1680 Meridian Avenue from 2006 to 2012 for the Fire Department and currently leases
approximately 3,349 square feet in 1688 Meridian Avenue for the Transportation Department.
Staff has identified suitable space in the 1680 Meridian Avenue building which could be used to
relocate Code Compliance, and would allow for parking at the City Hall parking garage and/or
17th Street parking garage.
ANALYSIS
The criteria established by the Administration for the required office space included the
following: 1) appropriate size between 4,500 and 5,500 square feet, 2) an existing buildout
which meets the needs of the Code Compliance Department and would enable a quick
occupancy, 3)adequate parking and 4)fair market terms & conditions.
Subsequently, the Real Estate Division identified space and negotiated terms and conditions for
a lease at 1680 Meridian Avenue. 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, Suite 203
& 602
Miami Beach, Florida 33139
SIZE: Approximately 4,814 rentable
square feet (approximately 2,583 rentable square feet in Suite 203
and 2,231 rentable square feet in Suite 602)
TERM: Sixty-three (63) months
RENT ABATEMENT: Three (3) months
LEASE
COMMENCEMENT DATE: April 1, 2019
LEASE
EXPIRATION DATE: June 30, 2024
RENEWAL OPTIONS: Tenant shall have two (2) renewal
Page 627 of 1418
options for three (3) years each, at the Tenant's option, at fair
market rent.
INITIAL BASE RENT: $44.00 per rentable square foot
(estimated to be $211,772 annually; $17,648 monthly)
BASE RENT INCREASES: 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 in excess of a 2019 base year, which is estimated at
$15.21 per square foot. Increases in controllable Operating
Expenses shall be capped at no more than five percent (5%)
above the previous year. Landlord shall provide building janitorial
service five (5) days per week, electricity, and water. Landlord
shall provide air conditioning during Code's current hours of
operation (approximately 20.7 hours/day).
TENANT
IMPROVEMENTS: Landlord will provide an allowance
of $10.00 per rentable square foot ($48,140) to be used towards
improvements to the Premises. Any unused allowance shall be
applied towards rent.
SECURITY DEPOSIT: None
USE: Administrative offices
Finance and Citywide Projects Committee
This matter was presented at the February 22, 2019 Finance and Citywide Projects Committee
(FCWPC) meeting. The FCWPC recommended in favor of executing a new lease agreement
with 1680 Costa, LLC in accordance with the above stipulated terms and conditions.
CONCLUSION
The Administration recommends that the Mayor and City Commission accept the
recommendation of the FCWPC and adopt the Resolution authorizing the City Manager to
negotiate a new lease agreement between the City and 1680 Costa, LLC, for approximately
4,814 square feet of space, located at 1680 Meridian Avenue, Suites 203 and 602, Miami
Beach, Florida; and upon successful negotiations, subject to Legal review and approval,
authorizing the Mayor and City Clerk to execute the final negotiated lease agreement.
Legislative Tracking
Economic Development
ATTACHMENTS:
Description
❑ Resolution
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