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Home My WebLink About99-23025 RESO RESOLUTION NO. 99-23025 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO DEVELOP A FACILITY USE PLAN TO RELOCATE CERTAIN CITY OFFICES TO 555-17TH STREET, UPON EXPIRATION OF THE EXISTING LEASES AND VACATION OF SAID PREMISES BY THE CURRENT OCCUPANTS WHEREAS, in an effort to reduce the amount of funds being expended to lease property from the private sector to house City personnel, and maximize and more efficiently use existing City- owned properties for public purposes, on September 23, 1998, the Mayor and City Commission requested that the Administration provide recommendations with regard to this matter; and WHEREAS, on December 2, 1998, the Administration recommended, and the Mayor and City Commission approved, that the matter be referred to the Finance/Citywide Projects Committee; and WHEREAS, on December 22, 1998, the Finance/Citywide Projects Committee recommended relocating certain City offices to 555 - 17th Street, in lieu of other City-owned properties such as Historic City Hall, because the former space would facilitate improved communication and interaction among City Departments, due to the immediate proximity to City Hall, at 1700 Convention Center Drive; and WHEREAS, the Administration concurs with the Finance/Citywide Projects Committee's recommendations with regard to this matter; and WHEREAS, the Administration seeks to prepare a Facility Use Plan, which shall include cost estimates for the proposed relocation of the Arts, Culture and Entertainment Office; Parking Administration; Parking Operations; Fire Administration; and Fire Prevention Bureau, as well as the continued maintenance of the Miami Beach Employees Federal Credit Union, to the City-owned property located at 555-17th Street. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Administration be authorized to develop a Facility Use Plan to relocate certain City offices to 555 - 17th Street, upon expiration of the existing Leases and vacation of said premises by the current occupants. PASSED AND ADOPTED this 6 day of January, 1999. ATTEST: ~ ftU~ CITY CLERK ~!YOR T:\AGENDA\1999\JAN0699\REGULAR\555_17ST.RES 12/30/98 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1# ~/t-L- City Attorney fy3d!1f Date CITY OF MIAMI BEACH -= = CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM NO. TO: Mayor Neisen Kasdin and Members of the City Commission DATE: November 18, 1998 FROM: Sergio Rodriguez City Manager SUBJECT: STATUS REPORT ON CITY-OWNED PROPERTIES WHICH ARE LEASED TO OTHER ENTITIES (CITY AS LESSOR) AND PRIV ATEL Y OWNED PROPERTIES WHICH ARE LEASED BY THE CITY (CITY AS LESSEE) BACKGROUND: In an effort to reduce the amount of capital being expended to lease property from the private sector to house City personnel, and maximize and more efficiently use the existing City-owned inventory for public purposes, on September 23, 1998, the Mayor and City Commission requested that the Administration provide a comprehensive report on this matter. Notwithstanding public rights-of-way, which include but are not limited to sidewalks, swale areas, streets and street ends, the City currently owns approximately 300 properties. The majority of which fall into the following categories: 1) parks/recreation facilities (including golf courses), 2) parking lots, 3) public works facilities, 4) police and fire stations, 5) convention center sites, and 7) miscellaneous parcels (i.e. Colony Theater, vacant lots, etc). There are currently four principal methods which the City uses to administer non-City use of City- owned property: 1) Lease Agreements, 2) Concession Agreements, 3) Management Agreements, and 4) Revocable Permits. This report, and the respective supporting documents attached hereto, only addresses Lease Agreements on City-owned property and Lease Agreements wherein the City is Lessee. ANALYSIS The City leases privately owned properties to house the Parking Department's administrative offices, two locations for Police Department operations (North Beach and Bay Road), as well as fully subsidizing the cost for the office space used by the Police and Fire Pension System, and providing office space for the General Employees and Unclassified Employees/Elected Officials Retirement System. The combined total office space the City leases is approximately 17,500 square feet of at a cost of $244,911 per year. An additional 21,500 square feet of land was leased for a lot (for Electrowave parking) at a cost of $161 ,250 yearly. This lease has been terminated. continued.... AGENDA ITEM DATE Leased Property Page 2 November 18,1998 The following chart describes the leased locations and user Departments, and provides recommended relocation alternatives. The chart reflects the City's annual rental obligations totals $406,220. The proposed relocation alternatives represent an annual savings of $323, 190 to the City. USER DEPARTMENT CURRENT LEASE SQ.FT. x RATE ANNUAL ACTION RECOMMENDED LOCA nON EXPIRES RENT Relocate to: Parking Administration 777-17th Street 6/30/00 7000 x $14.76 $103,296 Historic City Hall (4th or 8th FI.) Parking Operations as above as above as above as above Historic City Hall (1st Fl.No.) Police & Fire Pension 605 Lincoln Rd. atwill* 2500 x $23.43 $58,575 I) 701 5th St. 2) 555-17th Street, or 3) Historic City Hall (4th or 8th Fl.) Police Operations 1833 Bay Rd. 1/31/01 6000 x $12.00' $72,000 Remain as is Police Operations (DVU) 6988 Indian M-to-M 2000 x $5.52 $11,040 Remain as is Creek Electrowave Parking 1100 - 5th Street 12/14/98 21500 x $7.50 $161,250 Terminate upon expiration TOTAL ANNUAL RENT: $406,230 * lease may be terminated if the City provides for suitable accommodations within a City-owned facility. NOTE: Information obtained by the Community and Economic Development Department through an informal survey of oftice space in the South Beach area suggested that the rate for median office space in the area ranged from $13.00 to $22.00 per square foot. The following Departments are currently located in City-owned facilities. However, the space which they occupy has been deemed inadequate and relocation alternatives have been recommended. In the case of Fire, relocation of Fire Administration and Prevention represents a $2 million cost avoidance to the City which is the estimated cost of new facilities at Fire Station #2 that would otherwise be necessitated. DEPARTMENT LOCATION SQ. FT. ACTION RECOMMENDED NAME Relocate to: Fire Administration 2300 Pinetree (FS#2) 1300 Historic City Hall (7th Fl.) Fire Prevention 2300 Pinetree (FS#2) 1652 Historic City Hall (1 st FI.So.) Emp/Elect. Offi c ia I sPensi on City Hall (3rd FI) 460 City Hall (lsr Fl.) Arts/Cui ture/Entertainmen t City Hall (4th FI) 1300 Historic City Hall (4th or 8th Fl.) or 555-17th Street Over the past five years, the City of Miami Beach has made available space in publicly owned facilities at a nominal cost to not-for-profit organizations. Private, for profit, entities lease City- owned space at market rates. There are existing leases to private entities at what is deemed below market rates. Leases for office space with private, for profit, entities are primarily concentrated in Historic City Hall. continued.... Leased Property Page 3 November 18, 1998 Currently, the City as Lessor, leases approximately 169,026 square feet of interior improved space at eighteen (18) separate City-owned facilities, and generates approximately $317,221 per year (this includes space which is provided to Miami-Dade County for three public libraries, and to approximately 16 not-for-profit organizations). Additionally, the City as Lessor, leases approximately 127,892 square feet ofland and air-rights at six (6) City-owned properties, which generate approximately $71,859 yearly. Some ofthe leased sites are provided for one dollar ($1.00) per year, or for a very nominal fee, and include organizations such as the Performing Arts Network (P AN), the Florida Dance Association (FDA), the Jewish Community Center (ICe), the University of Florida, Holocaust Memorial and previously included the Florida Entertainment Commission and the Dade Marine Institute. Additionally, Miami-Dade County's Community Action Agency, which operates several programs in Miami Beach, also occupies space in one of the City's facilities. Attached is a comprehensive list detailing each of the leased sites and its respective tenant. The Administration has modified the model that is used for our lease agreements to require organizations to pay their pro-rata share of operating expenses. All lease agreements which have been entered into since November of 1996, provide that the lessees, in addition to the rent payment, pay any sales, use or excise tax(es), their proportionate share of operating expenses and utility charges including, but not limited to ad valorem taxes, electricity, water, gas, telephone, garbage disposal and maintenance costs. Additionally, since November of 1996, all leases to not-for-profit organizations, which have been afforded nominal rates, have been designed to sunset no later than May of 1999. The Office of Asset Management recently requested and compiled information from all City Departments related to their current and future space use requirements. This information will be used to determine the most effective use of our property inventory while addressing each Department's needs. The Administration's long term goal is to maximize the revenue generated from City-owned lands and facilities, and to eliminate or minimize the amount of property which the City leases from others. The following list of priorities will be addressed towards this end: . update and re-establish a comprehensive portfolio of all City-owned property to better manage these assets identify all unused and under-utilized property owned or controlled by the City . assess each Department's current and future staff space needs in order to determine the feasibility of relocating all, or part of each operation, into the unused or under- utilized space . assess each Department's current and future programming needs in order to determine the feasibility of using the unused or under-utilized space for those purposes continued.... Leased Property Page 4 November 18, 1998 · determine the market rates for any unused or under-utilized space that is not used by the City · establish a policy and process to effectively market any unused space RECOMMENDATION Based on the City's existing space needs and the directive to effectively utilize existing resources, it is recommended that the Mayor and City Commission endorse the proposed recommended relocation alternatives which encompass the following: (I) Action requested: Endorsement of the following relocation recommendations USER DEPARTMENT S.F. OCCUPIED RELOCA TION SITE RENT SA VlNGS TIME FRAME Fire Department Administration 1585 Historic City Hall (7th FI) $0 ASAP Fire Prevention Bureau 2449 Historic City Hall (I st FI) $0 ASAP Employees and Elected Officials Pension 1500 City Hall (1st FI) $0 ASAP Police and Fire Pension 2500 701 5th St. $58,575 ASAP Arts/Culture/Entertainment Office 1500 I) 555 - 17th Street ... . . . . . . $0 ASAP 2) Historic City Hall (4th or 8th $0 June of 2000 FI) ..................... . Parking Administration 1585 Historic City Hall (4th or 8th FI) $103,296 June of 2000 Parking Operations 2300 Historic City Hall (7th FI) As Above June of 2000 Electrowave Parking Cancel $161,250 Dec. 14, 1998 TOTAL $323,121 (II) Action Requested: Policy direction on'the future use of the City-owned property located at 555-17th Street, which currently houses the following: USER DEPARTMENT SQUARE FEET OCCUPIED ANNUAL RENT LEASE TERM EXPIRES Concert Association of Florida 4375 S.F. $1485/yr. Month - to-Month Performing Arts Network (PAN) 3424 S.F. $1 March 1999 Florida Dance Association 1023 S.F. $1 May 1999 Miami Beach Employees Federal Credit 1635 S.F. $0 No Lease Union continued.... Leased Property Page 5 November 18,1998 (III) Action Requested: Approval of the following recommendations with regard to pending litigation/eviction of certain tenants located at Historic City Hall: · Frankel and Associates' lease on the 7th and 8th Floor expired and they failed to exercise their 2nd renewal option. Frankel filed an action for declaratory relief against the City. A settlement proposal was reached that requires that Frankel relinquish and vacate the 7th Floor and retain use of the 8th floor space until June of 2000 Recommendation: Approve the proposed settlement · Affordable Landmark's lease on the 4th Floor expired. A proposed settlement provides that Affordable retain use of the 4th floor space until June of2000 Recommendation: Approve and offer terms consistent with Frankel's proposed settlement · University of Florida's School of Architecture lease of the 3rd Floor expired. No eviction or renegotiation of the lease has been pursued. Recommendation: Remain as month-to-month tenants SR:CC:JD:rd Attachment T:\AGENDA \1999VAN0699\REGULAR\PROPRPT.CC 1 tll 0/98 :ITY OF MIAMI BEACH ;ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 ttp:\\ci.miami-beach. fl. us COMMISSION MEMORANDUM NO. 3 "Z,- 95 TO: Mayor Neisen O. Kasdin and Members of the City Commission DATE: January 6, 1999 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUTION OF E MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO DEVELOP A FACILITY USE PLAN TO RELOCATE CERTAIN CITY OFFICES TO 555-17TH STREET, UPON EXPIRATION OF THE EXISTING LEASES AND VACATION OF SAID PREMISES BY THE CURRENT OCCUPANTS ADMINISTRATION RECOMMENDATION: Adopt the Resolution. BACKGROUND: On November 18, 1998, the City Commission referred the Status Report on City-owned properties which are leased to other entities (City as lessor) and privately owned properties which are leased by the City (City as Lessee) to the Finance and Citywide Projects Committee. (Status report attached. ) The Finance and Citywide Projects Committee met on December 22, 1998, and referred the action following action items requested in the status report back to the City Commission as follows: · Action Requested: Policy direction on the future use of the City-owned property located at 555 - 17th Street. The Committee recommended consolidation of existing City offices at the 555_ - 17th Street location versus relocating the Parking Department and the Fire Administration and Prevention Offices to Historic City Hall. The Committee suggested this would facilitate improved communication/interaction among City offices and functions and would enable the City to lease Historic City Hall to private users, thereby generating leased revenue for the City. The City Manager further recommended that the Credit Union should remain in the 555 - 17th Street location as well. continued.... AGENDA ITEM DATE R'l~ 1-L,-9C1 · Action Requested: In addition, the Committee considered a proposal to relocate the Police and Fire Pension offices to the 701 5th Street leased space. The Committee was concerned with the estimated build-out cost of $100,000 and future operating expense obligations. No action was taken on this item, but the Administration will present a more comprehensive report to the City Commission on January 20, 1999. ANALYSIS: To address the City's concerns to maximize and efficiently utilize the existing City-owned property for public purposes, the Administration proposed relocation alternatives for the Parking Department, Fire Administration and Prevention offices, Pension offices and Arts/Culture/Entertainment office. The Finance and Citywide Projects Committee deferred any action on the relocation recommendations submitted in the status report pending a policy direction on the usage of 555-17th Street facility. Furthermore, the Committee recommended consolidation of existing City offices at the 555-17th Street location versus relocating the Parking Department and the Fire Administration and Prevention Offices to Historic City Hall. The Committee suggested this would facilitate improved communication/interaction amongst City offices and functions and would enable the City to lease Historic City Hall to private users, thereby generating leased revenue for the City. In accordance with this recommendation, the Administration presents revised relocation alternatives to be considered by the City Commission as follows: Preliminarily, the proposed relocation recommendations to the 555-17th Street building are: Department Current Sq. Ft. Occupied Proposed Sq. Ft. Fire Administration 1300 1500 Fire Prevention Bureau 1652 2500 Culture, Arts, & Entertainment 1300 1500 Parking Administration & Operations* 7000 4000 Employees Federal Credit Union 1635 957 TOTAL 12887 10457 * Parking Department is relocating enforcement personnel to the 42nd Street Garage resulting in the reduction of square footage requirements. continued.... Other proposed relocation alternatives: Department Current Sq. Ft. Occupied Proposed Proposed Sq.Ft. Site Police & Fire Pension Office 2500 3000 701-5th St. Employees & Elected 460 1500 City Hall Officials Pension Office 1 st Floor TOTAL 2960 4500 CONCLUSION: It is recommended that the City Commission adopt the Resolution authorizing the Administration to develop a facility use plan, including corresponding costs, to relocate existing City offices to 555- 17th street upon expiration of the existing leases /\/ SR:CMC:JD:rd f T:\AGENDA\1999\JAN0699\REGULAR\555_17ST.MEM 12/26/98.5