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Resolution 2025-33597 RESOLUTION NO. Z02533597 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE A LEASE AGREEMENT BETWEEN THE CITY ("TENANT")AND BCPF AVE, LLC ("LANDLORD"), BASED UPON THE ESSENTIAL TERMS SET FORTH IN THIS RESOLUTION, FOR LEASE OF APPROXIMATELY 24,991 SQUARE FEET OF WAREHOUSE SPACE, LOCATED AT 14101 NW 57TH AVENUE, MIAMI LAKES, FL 33054 ("PREMISES"), TO BE USED BY THE MIAMI BEACH POLICE DEPARTMENT ("MBPD") FOR STORAGE; SAID LEASE HAVING AN INITIAL TERM OF FIVE (5) YEARS, COMMENCING ON AUGUST 1, 2025, WITH ONE (1) RENEWAL TERM OF FIVE (5)YEARS AT THE OPTION OF THE CITY MANAGER; AND FURTHER, FOLLOWING COMPLETION OF SUCCESSFUL NEGOTIATIONS AND REVIEW AND APPROVAL BY THE CITY ATTORNEY, AUTHORIZING THE CITY MANAGER TO EXECUTE THE LEASE AGREEMENT. WHEREAS, the Miami Beach Police Department("MBPD")provides critical law enforcement services, crime prevention programs, and community engagement initiatives to the residents and visitors of Miami Beach; and WHEREAS, MBPD currently leases an 18,200 square-foot warehouse located at 6700 NW 36th Avenue, Miami, Florida, for evidence storage, vehicle storage, and operational equipment; and WHEREAS, the existing lease is set to expire on September 30, 2025 and continued use of this warehouse facility has become impracticable because the space does not have suRicient capacity to meet MBPD's expanding operational needs and the space has significantly deteriorated, increasing the City's maintenance costs; and WHEREAS, the current landlord Intends to increase reM to market value, estimated behveen $17.00 to $21.00 per square foot, further making retention of the existing facility an imprudent business decision; and WHEREAS,the CityAdministration has identified and is in the process of negotiating a Lease Agreement with BCPF AVE, LLC ("Landlord") for use of a newly consiructed 24,991 square-foot warehouse facility, located at 14101 NW 57th Avenue, Miami Lakes, Florida 33054, which offers improved infrastructure, up-to-date fire and life safety, and operational effciency for MBPD's needs; and WHEREAS, the proposed Lease Agreement includes the following key terms: Tenant: City of Miami Beach, Florida municipal corporation Landlord: BCPF AVE, LLC, a Delaware limited liability company Premises: 14101 NW 57th Avenue, Miami Lakes, FL 33054 Size: Approximately 24,991 rentable square feet Use: Office and storage for MBPD operations Lease Term: Five (5) years from Rent Commencement Base Rent: $18.50 per square foot, triple net Rent Escalation: 4% annual increase starting in Month 13 i Operating Expenses: Estimated at $4.61 per square foot in 2025 Renewal Option: One (1)option to renew for five (5)years, with rent adjusted to fair market value but not less than a 4% increase over the previous year's base rent Security Deposit: Equivalent to two (2) months' rent Right to Terminate: Tenant has the right to terminate the lease at month Forty (40) with hvelve (12) months' prior written notice to Landlord and payment of a penalty of six (6) months' Base Rent and Operating Expenses Lease Commencement Date: August 1, 2025 Rent Commencement Date: Three (3) months after Lease Commencement Utilities: Tenant responsible for electricity, water, phone, and gas (if applicable) Tenant's Work: Must be approved by Landlord and performed by a licensed general contractor Lease Form: Traditional triple-net lease; and WHEREAS, securing this lease will enhance MBPD's ability to store and manage law enforcement resources effciently, ensuring uninterrupted public safety services and improving long- term operational sustainability; and WHEREAS, based on the competitive lease terms, increased operetional capacity, and improved facility conditions, the City Manager recommends negotiating a Lease Agreement based upon the essential terms set forth in this Resolution, and following completion of successful negotiations and review and approval by the City Attorney, executing the Lease Agreement. NOW,THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,that the Mayorand City Commission hereby authorize the City Manager to negotiate a Lease Agreement between the City("TenanP')and BCPF AVE, LLC ("Landlord"), based upon the essential terms set forth in this Resolution, for lease of approzimately 24,991 square feet of warehouse space, located at 14101 NW 57th Avenue, Miami Lakes, Florida 33054, to be used by the Miami Beach Police Department (MBPD) for storage; said Lease Agreement having an initial term of five (5) years, commencing on August 1, 2025, with one (1) renewal term of fve (5) years at the option of the City Manager; and further, following completion of successful negotiations and review and approval by the Ciry Attorney, authorize the City Manager to execute the Lease Agreement. PASSED and ADOPTED this Zj day of Apr�� 2025. ATTEST: +� APR 2 9 2025 �' "C-ec�,,.�_ Rafael E. G nadq ity Clerk Steven Meiner, Mayor � �B��C'+� �... ........ti'� :'�'� ! y �IXCOAP O0.AlE0.,`�: AT'.�iTv ''•4�'�H 2�'^�'` APPROVED AS TO • FORM & LANGUAGE R EXECUTION i����+1-�zr Altomey Dafe Resolutions -C7 H MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: April 23, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, A LEASE AGREEMENT BETWEEN THE CITY ('TENANT") AND BCPF AVE, LLC ("LANDLORD"), FOR LEASE OF APPROXIMATELY 24,991 SQUARE FEET OF WAREHOUSE SPACE, LOCATED AT 14101 NW 57TH AVENUE, MIAMI LAKES, FL 33054 ("PREMISES"), TO BE USED 8Y THE MIAMI BEACH POLICE DEPARTMENT ("MBPD") FOR STORAGE; SAID LEASE HAVING AN INITIAL TERM OF FNE (5) YEARS, COMMENCING ON AUGUST 1, 2025, WITH ONE (t) RENEWAL TERM OF FIVE (5)YEARS AT THE OPTION OF THE CITY MANAGER; AND FURTHER AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECl1TE THE LEASE AGREEMENT. RECOMMENDATION The Administration recommends the Mayor and City Commission adopt the resolu�ion approving a Lease Agreement between lhe City, as Tenant, and BCPF AVE, LLC, as Landlord, for app�oximately 29,991 square feet of warehouse space located at 14101 NW 57th Ave, Miami Lakes, FL 33054,for use by Miami Beach Police Department (MBPD) personnel. BACKGROUNDIHISTORY The Miami Beach Police Department ("MBPD" or the "Department") has served [he community tor decades, providing law enforcemen[ services, crime prevention programs, and community engagement initiatives. Historically, [he Department has managed criminal investigations, evidence retention, and vehicle storage at its headquarters at 1100 Washington Avenue. However, as the City's needs have evolved, so did the demand (or additional storage space to support law enforcement operations. To address this growing demand, MBPD has relied on off-si�e storage�o house evidence, police vehicles, and opera6onal equipment. The current warehouse located at 6700 NW 361h Avenue, Miami, FL 33147, with 18,200 square leet has been leased to accommoda[e these needs. However, this lease agreement is set to expire on Sep�ember 30, 2025. Despite serving as a crucial storage locatioq the facility has deteriorated signifcantly, requiring extensive maintenance and repairs Ihat make coNinued use impractical. Upon the expiration of the current lease Agreement, the Landlord has Ihe right and intends to increase the rent to cuRent market value, which is approximalely$17.00 to$21.00 per sQuare foot. Additionally, the current space is insuKcien[to meet MBPD's operational growth needs and does not provide any office accommodations for law enforcement personnel to conduct on site administrative work. The increasing volume o! evidence, police vehicles, and cntical law entorcement resources requires a larger, more modem facility. The cost of necessary repairs and upgrades at the current location woultl be substantial, making it f nancialty prudent to relocate to a new facility with expanded square footage and improved infrasVucWre rather Ihan invest heavily in repairs to an inadequate space. s$s 1 To enhance operational efficiency and uphold law enforcement protocols, Ihe City musl secure a larger, more suitable facility that meets MBPD's growing storage and operational needs. This hansition will not only optimize resource management but also strengthen MBPD's abiliry to store and safeguard critical assets with greater secunty, efficiency, and effectiveness. In pursuit of Ihis objec[ive, the City has pioaclively identifed poten[ial properties to accommodate MBPD's warehouse requirements. After evalua[ing multiple venues in collaboration wilh MBPD personnel, the Administration has determined that the most viable option is outlined in the attached Letter of Intent (LOI) in Exhibit A, which details the key lease terms summarized below: 7enant City of Miami Beach, a Flonda municipal corporation. Address: 1700 Convention Center Drive, Miami Beach, FL 33139 Landlord: BCPF AVE, LLC, a Foreign Limitetl Liability Company Premises: 14101 NW 57'^Ave, Miami Lakes, FL 33054 Size of Premises: Approx. 24,991 rentable square (ool ("RSF") Tenant Use: Office and Storage Lease Term: Five (5) years from Rent Commencement Base Rent: $18.50 lriple net per square toot Option to Renew: Option to Renew(or one additional five (5) yea�term. Notice (or TenanPs renewal is 12 mon[hs prior to the expiration. The terms of the Option to Renew will be at Ihe grealer of lhe ezpiring renl or FMV and will be AS IS not to exceed 4% over previous years Base Rent. Rent Increases: The Base Rent will escalate al4°/ per annum starting at Month 13. Additional Rent Tenant shail pay its pro rata share of the allocated ezpenses. Estimated charges(or 2025 are approzimalely $4.61 per square fool. Lease CommencemenY. Lease Commencement da[e is August 1, 2025. Rightto Terminate: Lantllord shall grant Tenant a one-time Right to Tertninate Ihe lease at Month forty (40) by providing twelve (12) months' prior wririen notice. The penalty to terminate will be 6 months of Base Ren[ and Operating Expenses. Delivery Date: August 1, 2025 Rent Commencement: Three (3) Months after Delivery Date. Security DeposiC Two (2) months of Rent 687 Prepaymenta: Upon execution,Tenant shall pay its first month's gross rent including sales tax. TenanYa Work: All Tenant's Work must be app�oved by Landlord and shall be conducted by a general contrecror licensed in the SWte of Flonda. Utilities: Tenant shall be responsible (or electricity, water, phone, and gas (if applicable). Landlord's work: Tenant shall accept Ihe premises in its "AS IS" Conditions. NEW CONSTRUCTION. Lease Form: The Lease will be a traditional triple net lease basis. Real Estate Commission: The Landlord and Tenanl acknowledge tha� they have not dealt with any real estate broker(s) in ihis transaction other than Charifl Realty Group representing the Tenan� and CBRE representing the Landlord. Landlord shall be responsible for the payment o( [he brokerage commission to Bmker(s). ChanH Realty Group shall be en[itled to a commission o(4% of the gross lease value and to include any expansion or eatensions, so long as Chanff Realty produces an ezclusive representation agreement for any eatension or expansion. Such commission shall be paid 50% upon Tenanl exewting a lease agreement and the remaining 50% upon Tenant paying ren[. The schedule of Base Rent and Operating Expenses due over the initial term are illustrated in the following chart: Sqwre ieef. ]�,991 Yase Ram: f 10.30 Mnuallncre�se: �4 VSF MonMly Mnual Tobl VSF MonMly Innual Opernin� Opantiny Opmtiny Base Bmt Tftf @lie_9fN @1tiB4N alif.B1N EaQ�L2fi ESpl111lt EEV9llif2 ■LYfE 1 4 IB.50 $38,SP.19 SC62.733.50 S i61 $ 9,6WJ1 S115108.51 $SP.SJ2.01 2 S 19.2d SA0.068.90 Sd80.876.BC S d.79 S 9.980.]d f119.816.85 4600.60.7.� 3 $ Z0.01 Sd1.611.66 S`A0.059.91 $ i.99 410.386.13 SIId,609.54 462d.669.Jd d S 10.81 Sd3.738.53 5520.062.31 S 5.19 510.799d9 SI79.59391 $6i9.656.22 5 S 21.6f Sd50)Z.0) SX0.86d.80 f S.J9 SLL2JlA) $130.1�'I.66 3615 W2.J6 ANALVSIS 68S The City has been actively seeking new property options to accommodate the Miami Beach Police Departmenfs (MBPD) operational needs. After evaluating multiple locations, StaH tound the averege rent range belween $17.00 per square foot and $24.00 per square foot for warehouse spaces. Many of the warehouse options were dated and in immediate need of�enovation and/or infrastructure improvements, which would prove to be costly for the Ciry. The proposed lease at 14101 NW 57th Avenue, Miami Lakes, FL 33054, was determined to be the most suitable option. This facility, a newly construcled building, consists o(approzimately 24,991 rentable square feet and indudes 2,200 square feet of airconditioned office space. The space oRers 32-toot ceiling heights, an extra-wide ramp to accommodale large equipment delivenes, and an up-to-0ale fire and life safery system, ensuring compliance with operetional antl safery standards. Additional details about�he property can be found in the Property 8rochure, attached as Exhibit B. Under the proposed lease terms, the base rent was negotiated down to$18.50 per square foot on a triple-net basis, plus applicable sales Wx. The lease includes an initial term of fve years from the rent commencement date, with an option to renew for an additional four years and 364 days. The base rent will increase by 4% annually starting on the thirteenth month of the lease term. In addition to base rent, the tenant is responsible for its pro rata share of allocated expenses, which are estimated at$4.61 per square foot for 2025.. FISCAL IMPACT STATEMENT The fnancial impact of this lease agreement is based on the established lease lerms and associa[ed costs. Over Ihe inilial lease [ertn, lhe City will pay base rent calculaled at $18.50 per square foot with annual increases of 4%. The estimaled operating expense reimbursements, calculated at $4.61 per square loot for 2025, will contnbute to the overell fnancial obligations of the lease and may he subject to adjustments in subsequent years. The Lease Agreement, attached as Exhibit C, provides further details on these fnancial obligations. To secure the lease, the City will provide a sewrity deposit equivalent to two months' renl 7he brokerage commission associated with lhis lease agreement will be paid by the Landlord, who has agreed to compensate Chanff Realry Gmup with a commission equal to 4%of the gmss lease value. As the unit is a newly conslruc�ed space, the City will accept the premises in ils"as-is"condition, with no addi[ional�enant improvement reimbursements required. This Lease Agreement provides a cost-effective and long-term solution tor MBPD's operational needs, ensunng uninterrupted law enforcement services while optimizing resource allocation and fnancial effciency. Daes this Ordinance reauire a Busineas Imoact Estimate� (FOR ORDINANCES ONLY) If applicable, the 8usiness Impact Estimate (BIE)was publiahed on: See BIE at https�// iamibeachfl ao / 'ry-hall/ci[v-clerklmeetina noticesl FINANGIAL INFORMATION CONCLUSION 689 � The Lease Agreement with BCPF AVE, LLC ensures the continued availability of critical storage and operational resources for the Miami Beach Police Department With the current lease at 6700 NW 36th Avenue set to expire antl the facility no longer meeting operational needs, transitioning lo a new location with increased square footage and a more modem facility is the most efficient and wst-ef(ective soWtion. This move will enhance MBPD's ability to store and manage law enforcement resources while improving long-term operetional eKciency. By securing this lease, the Cily upholds i�s commilmen� to public sa(ety, crime prevention, and effcient resource allocation. Based on Ihe toregoing, [he Adminislra[ion recommends the Mayor and City Commission adopt the resoWlion approving a Lease Agreement belween the City, as Tenant,and BCPF AVE, LLC, as Landlord, tor approximately 29,991 square feet of warehouse space located al 14101 NW 57'�"Ave, Miami Lakes, FL 33054, for use by MBPD personnel. Aoolicable Area Citywide Is this a "Residents Riaht to Know" item Is this item related to a G.O. Bond pursuant to Cib Code Section 2-17? Proiect? No No Was this Aaenda Item initiallv renuested bv a lobbvist which as de£ned in Code Sec 2d81 includes a orincioal enoaoed in lobbvinu7 No I(so, speci(y lhe name o(lobbyist(s) and pnncipal(s)�. Deoartment Facilities and Fleet Management Sponso�(sl Co-soonsor(sl Condensed Title Approve �ease Agmt w/BCPF Ave, LLq Warehouse Space at 141 NW 57th Ave for MBPD. FF Previous Action fFar Citv Clerk Use Onlvl 690 oaa:�q�e�.awe io:neottF�aezrne raa-erernnsEonnssasi . ■ . ■ ■ ■ chariff Peb�uary 25, 2025 Re(erence: 1N01 NW 57'"Ave Miami Lakes FL 33054 ("Building") Dear Devin, I am pleased lo present[he(ollowing genera��erms and wnditions upon which The City o( Miami Beach (Tenant) would consider entering into a lease for the premises referencetl below: TenanC Ciry of Miami Beach Address: 1700 Convention Cen[er Dnve, Miami Beach, FL 33139 Landlard: BCPF AVE LLC Premiaes: 14107 NW ST"Ave, Miami Lakes, FL 33054 Size of Premises: Approx. 24,991 rentable square foot("RSF") Tenant Use: �ce and Storage Lease Term: Five (5)years from Renl Commencement Base RenY. §1850 tnpla net per square foot plus appliwble sales taa Optian to Renew: Op[ion to Renew for one additional four(4)year« 3gq�ay term Notice tor Tenant's renewal is 12 mon[hs pnor to Ihe ezpiretion. The teims of the Option to Renew will be at FMV and will 6e AS IS Rent Increases: The Base Renl will escalate by 4% per annum s�arting at Month 13. 691 � Do<uagn Envebpe 10'.A8021 F]3b229J]OA BFBF-1FBEOfiAfi60E' Atlditional Rent Tenan� shall pay its pro reta share o� (he allowted expenses. The operating e:penses are estimatetl fo be E4.61 per square foot. Lease Commencement The Lease Commencement tlale is August �, 2025. Right to Terminate: �antllord shall grant Tenant a one-time RigM to Terminate the lease al Mon�h 40 by providing twelve ('12) monlhs' prior wntten notice. The penalty to lerminate will be 6 mon�hs o!gross �ent. Oelivery Date: August 1, 2025 Rent Commencement Three (3) Months afler Delivery Dale. SecuriTy Oeposid 7wo (2) rnon�hs af Renl Prepayments: Upon ezecution, Tenant shall pay its (irst months' gross rent including sales tax. Tenanl's Work: AII Tenanfs Work must be approved by Landlord and shall be conducted by a general coniractor licensetl in Ihe S�ate o(Flontla. Utilities: Tenant shall be responsible for elecincity, water, phone, and gas (if applicable). Lantllord's work: Tenant shall acce0t the premises in its"AS IS" Conditions. Lease Form: Modifietl Gross Lease Agreement to be preparetl by Lantllortl. The Lease will be a treditional hiple net lease basis. Real ESWte Commission: The Landlord and Tenant acknowledge ihal lhey have no[dealt with any real estate broker(s) in this transaction other ihan Chariff Realty Group representing Ihe Tenant and CBRE representing Ihe Landlord. Landbrd shall be responsible !or the payment of the 6rokerage commission to Broker(s). CbariH Realty Group shall be enlitled to a commission of 4% of ihe gross lease value and to include any expansion or extensions, so long as Charitt Realry produces an exclusive representa[ion agreement(or any ez[ension or expansion. Such commission shall be paid 50°/> upon Tenant execuling a lease agreement and Ihe remaining 50°% upon Tenanl paying rent. This proposal is non-binding on either party but is created and accepted in good faith for both parties to proceed as diligenlly as possible. The partes understand ihat nei�her will be subject to any binding and enforceable o6ligations until such time as a lease s9z oo�,:q�En.emne io:�eonF»-ene<�un-areF.ir•aEaAesasi inwrporating the agreed upon terms and conditions has been (ully executed by lhe parties. If not accepleQ ihis oHer will be withdrawn by Pebruary 27, 2025. I look forward ta working with you towartls the successful condusion of this Iransaction. Very W ly yours, Luis Guevara, ChanH Realry Group laen Narcn Agreed antl accepled as stated on Ihis of , 2025. 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