2004-25722 Reso
RESOLUTION NO. 2004-25722
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC
HEARING ON NOVEMBER 10, 2004, PURSUANT TO THE
REQUIREMENTS OF SECTION 82-37 OF THE MIAMI BEACH CITY
CODE, TO HEAR PUBLIC COMMENT REGARDING THE LEASE
OF APPROXIMATELY 2,800 SQUARE FEET OF CITY-OWNED
PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE (A/KJA 777 -
17TH STREET), MIAMI BEACH, FLORIDA, FORA TWENTY-THREE
(23) MONTH TERM, COMMENCING ON NOVEMBER 1, 2004, AND
ENDING ON SEPTEMBER 30, 2006; FURTHER CONSENTING TO
THE NEGOTIATED TERMS PRESENTED HEREIN, SUBJECT TO A
LEASE AGREEMENT IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY AND COMPLIANCE WITH THE REQUIREMENTS OF
SECTION 82-36 THROUGH 82-39 OF THE MIAMI BEACH CITY
CODE.
WHEREAS, in January of 2002, the City acquired the property located at 1701
Meridian Avenue (a/k1a 777-1 ih Street), Miami Beach Florida (the "Property"); and
WHEREAS, at that time, BraUer, Calvo, Kreiger LLP/Playground Maps, Inc. (Bratter
Kreiger) was occupying approximately 2,800 square feet of office space, more particularly,
Suite #PH (the "Demised Premises"), pursuant to the provisions of an existing Lease
Agreement that was set to expire on August 31,2005; and
WHEREAS, on March 10,2004, BraUer Kreiger notified the City it was vacating the
premises and ceasing payment of rent, purportedly due to the condition of the Demised
Premises, most specifically the maintenance and repairs of the elevators; and
WHEREAS, said notification was received by the City after months of discussion
and deliberations between the City and Bratter Kreiger, wherein the City attempted to
address their concerns and reach an amicable resolution regarding elevator repairs,
including the City's good faith efforts to procure new elevators for the Property, as
authorized by City Commission on September 10, 2003; and
WHEREAS, on April 1 0, 2004, Bratter Kreiger abandoned the Demised Premises
and, as a result thereof, on April 16, 2004, the City sent Bratter Kreiger notice terminating
the subject Lease Agreement, at which time the City resumed possession of the Demised
Premises; and
WHEREAS, the Lease Agreement provides that the City may re-Iet the Premises
.upon termination of the Lease, and as such the City has been actively marketing the
vacated Demised Premises; and
WHEREAS, as a result of the "soft" office space market in Miami Beach, there has
been only minor interest expressed in the vacated space, and the City had yet been able to
re-Iet same; and
WHEREAS, Hazen and Sawyer, the City's City-wide program management
contractor, has approached the City and expressed interest in leasing the space, and
agreement has been reached with the City as to the terms and conditions of said lease
agreement, which would be subject to: 1) formal City Commission approval; 2) execution of
a formal lease agreement in a form acceptable to the City Attorney; and 3) compliance with
the applicable requirements of Sections 82-36 through 82-39 of the City Code (a/ka/
Shapiro Ordinance); and
WHEREAS, the Mayor and City Commission originally authorized the purchase of
the Property to address the City's ongoing need for administrative office expansion on a
graduated basis; and
WHEREAS, the Administration has begun implementing the aforestated objective, it
also considers that allowing for this short term office tenancy, at this time, will allow the City
to maintain its revenue stream from the Property until such time the subject space is
required for City office expansion; and
WHEREAS, accommodating Hazen and Sawyer is deemed to be in the City's best
interest and will facilitate their interaction with the City's Capital Improvement Projects
Office, situated in the same building; and
WHEREAS, the proposed lease is subject to the requirements of the Shapiro
Ordinance; however, due the fact that the City only received notice of Hazen and Sawyer's
affirmative interest in the office space on Monday, October 11, 2004, and Hazen and
Sawyer required a response no later than October 21, 2004, it is recommended that the
Mayor and City Commission consent to the approval of the terms and conditions of the
proposed Lease Agreement, as presented below, and schedule a public hearing, as
required by the Shapiro Ordinance, on November 10, 2004, for final consideration of the
Lease Agreement and compliance with the requirements of the Shapiro Ordinance; and
WHEREAS, the City and Hazen and Sawyer have negotiated the conditions of the
Lease Agreement, substantially in accordance with the following terms:
Term: 23 months, commencing on November 1,2004, and ending on
September 30, 2006
Option to Renew: Option to renew, at City's sole discretion, and to run concurrent
with any extension the may City grant to Hazen and Sawyer
pursuant to their City-wide Program Management Contract, but
not to exceed a period of 5 years in total from the effective
date
Use: Engineering office to serve as City's program manager and
other engineering activities and operations
Total Rent: 6 month rent abatement; Rent commencement on May 1 , 2005
at a rate of $5,366.67 per month, $64,400.00 yearly, $23.00
per square foot, gross
Sales/Use Tax: Tenant shall also be responsible for all applicable sales and
use tax
Parkinq: Tenant may request, from the City's Parking Department, the
use of parking spaces, if available, at Municipal Parking
Garage 2-G located on 17th Street and Meridian Court. Rates
for said spaces are subject to change, and are currently
$60.00 per month, plus applicable sales and use tax per space
Security Deposit: $5,366.67.
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 set a Public Hearing on November 10, 2004, pursuant to the
requirements of Section 82-37 of the Miami Beach City Code, to hear public comment
regarding the lease of approximately 2,800 square feet of City-owned property, located at
1701 Meridian Avenue (a/k/a 777 - 1ih Street) Miami Beach, Florida, for a twenty-three
(23) month term, commencing on November 1,2004, and ending on September 30, 2006;
further consenting to the negotiated terms presented herein; subject to a Lease
Agreement, in a form acceptable to the City Attorney, and compliance with the
requirements of Sections 82-36 through 82-39 of the Miami Beach City Code.
~t P CU~
CITY CLERK
MAYOR
PASSED and ADOPTED this 13th day of
ATTEST:
APPROVED AS TO
FORM & LANGU*G.E I!
& FOR EXECUftbN
JMG\CMC\JD\rlr
T:\AGENDA\2004\Oct1304\Regular\777~17th Street Lease.RES.DOC
CllY OF MIAMI BEACH
COMIIIISSION ITEM SUMMARY
m
Condensed Title:
A Resolution setting a Public Hearing on November 10,2004, pursuant to the requirements of Section 82-
37 of the Miami Beach City Code, to hear public comment regarding the Lease of approximately 2,800
square feet of City-owned property, located at 1701 Meridian Avenue (a/k/a 777 - 17th Street), Miami
Beach, Florida, for a twenty-three (23) month term, commencing on November 1, 2004, and ending on
September 30, 2006; further consenting to the negotiated terms presented herein, subject to a Lease
Agreement in a form acceptable to the City Attorney and compliance with the Requirements of Section 82-
36 throuoh 82-39 of the Miami Beach CitY Code.
Issue:
Should the Mayor and City Commission set a Public Hearing on November 10, 2004, to hear public
comment regarding the Lease of approximately 2,800 square feet of City-owned property, located at 1701
Meridian Avenue (a1k/a 777 - 17th Street) Miami Beach, Florida, for a twenty-three (23) month term,
commencing on November 1, 2004, and ending on September 30, 2006; further consenting to the
negotiated terms presented herein, and subject to a Lease Agreement in a form acceptable to the City
Attornev and compliance with the Section 82-36 throuoh 82-39 of the Miami Beach Citv Code?
Item Summary/Recommendation:
In January of 2002, the City of Miami Beach acquired the property located at 1701 Meridian Avenue, also
known as 777 -17th Street (the "Property"). At that time, BraUer, Calvo, Kreiger LLP/Playground Maps, Inc.
(BraUer Kreiger) was occupying the penthouse area containing approximately 2,800 square feet of office
space, more particularly, Suite #PH (the "Demised Premises"), pursuant to the provisions of an existing
Lease Agreement that was set to expire on August 31, 2005.
On March 10,2004, Bratter Kreiger notified the City it was vacating the premises and ceasing payment of
rent purportedly due to the condition of the Demised Premises, most specifically the maintenance and
repairs of the elevators. As a result thereof, on April 16, 2004, the City sent Bratter Kreiger notice
terminating their Lease, and the City has since resumed possession of the Demised Premises.
As a result of the "soft" office space market in Miami Beach, there has been only minor interest expressed
in the space abandoned by BraUer Kreiger. Hazen and Sawyer, the City's city-wide program management
contractor, has approached the City and expressed interest in leasing the space, under the terms and
conditions outlined in the attached memo.
The Administration recommends that the Mayor and City Commission adopt the attached Resolution and
indicating its approval of the terms and conditions of the proposed Lease Agreement, and seUing the
required public hearina on November 10, 2004.
Advisory Board Recommendation:
I N/A
Financial Information:
Source of
Funds:
D
Finance Dept.
City Manager
AGENDA ITEM
DATE
C7Q
IO-/3-ol{
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.cLmiami-beach.fl.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Date: October 13, 2004
Members of the City Commission
Jorge M. Gonzalez ~/~
City Manager . U
A RESOLUTION F THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING ON
NOVEMBER 10,2004, PURSUANT TO THE REQUIREMENTS OF SECTION
82-37 OF THE MIAMI BEACH CITY CODE, TO HEAR PUBLIC COMMENT
REGARDING THE LEASE OF APPROXIMATELY 2,800 SQUARE FEET OF
CITY-OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE (AlKlA
777 -17TH STREET), MIAMI BEACH, FLORIDA, FOR A TWENTY-THREE
(23) MONTH TERM, COMMENCING ON NOVEMBER 1,2004, AND ENDING
ON SEPTEMBER 30, 2006; FURTHER CONSENTING TO THE
NEGOTIATED TERMS PRESENTED HEREIN, SUBJECT TO A LEASE
AGREEMENT IN A FORM ACCEPTABLE TO THE CITY ATTORNEY AND
COMPLIANCE WITH THE REQUIREMENTS OF SECTION 82-36 THROUGH
82-39 OF THE MIAMI BEACH CITY CODE.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
In January of 2002, the City of Miami Beach acquired the property located at 1701 Meridian
Avenue, also known as 777 _17th Street (the "Property"). At that time, Bratter, Calvo, Kreiger
LLP/Playground Maps, Inc. (Bratter Kreiger) was occupying the penthouse area containing
approximately 2,800 square feet of office space, more particularly, Suite #PH (the "Demised
Premises"), pursuant to the provisions of an existing Lease Agreement that was set to
expire on August 31,2005.
On March 10, 2004, Bratter Kreiger notified the City it was vacating the premises and
ceasing payment of rent purportedly due to the condition of the Demised Premises, most
specifically the maintenance and repairs of the elevators. This notice arrived after months
of discussion and deliberations between the City and Bratter Kreiger to address their
concerns and reach an amicable resolution regarding elevator repairs, and amidst the City's
good faith efforts to procure new elevators for the Property, as authorized by City
Commission on September 10,2003.
On April 10, 2004 Bratter Kreiger abandoned the Demised Premises. As a result thereof,
on April 16, 2004, the City sent Bratter Kreiger notice terminating their Lease, and the City
has since resumed possession of the Demised Premises (This was properly accomplished
pursuant to Paragraph 27 of the Lease Agreement). Additionally, the City notified Bratter
October 13, 2004
City Commission Memorandum
777-1ih Street Lease
Page 2 of 3
Kreiger that, as a result of its default and termination of the Lease, it had forfeited its
Security Deposit ($10,000).
Pursuant to Paragraph 27 of the Lease Agreement, the City may re-Iet the premises upon
termination of the Lease; therefore the City has been actively marketing the vacated
Demised Premises. In order to substantiate whatever damages the City incurs with respect
to the termination of the Lease, specifically, pursuant to Paragraph 27 (b) of the Lease
Agreement, one of the City's ( as Landlord) remedies following termination is to "... resume
possession and re-lease or re-rent the Premises for the remainder of the Term for the
account of Tenant and recover from Tenant, at the end of the Term or at the time each
payment of rent comes due under this Lease, as the Landlord may choose, the difference
between the rent provided for in this Lease and the rent received on the re-lease or re-
rental, together with all costs and expenses of the Landlord on connection with the re-
leasing or re-rental and collection of rent and the costs of all repairs or renovations
reasonably necessary in connection with the re-Ieasing or re-rental;...."
As a result of the "soft" office space market in Miami Beach, there has been only minor
interest expressed in the space abandoned by Bratter Kreiger. Hazen and Sawyer, the
City's city-wide program management contractor, has approached the City and expressed
interest in leasing the space, under the following terms and conditions, which would be
subject to:
. City Commission approval,
. lease agreement in a form acceptable to the City Attorney, and
. compliance with the applicable requirements of the "Shapiro Ordinance" (to be
presented on November 10, 2004 on a retroactive approval basis)
The City and Hazen and Sawyer have negotiated the conditions of a short-term Lease
Agreement substantially in accordance with the following terms:
Demised Premises: Suite PH, 1701 Meridian Avenue (a/k/a 777-17tn Street), Miami
Beach, Florida 33139, encompassing 2,800 +/- square feet on the fifth
floor
Term: 23 months, commencing on November 1, 2004, and ending on
September 30, 2006
Option to Renew: Option to renew, at City's sole discretion, and to run concurrent with
any extension the may City grant to Hazen and Sawyer pursuant to
their City-wide Program Management Contract, but not to exceed a
period of 5 years in total from the effective date
Use: Engineering office to serve as City's program manager and other
engineering activities and operations
Total Rent: 6 month rent abatement; Rent commencement on May 1,2005 at a
rate of $5,366.67 per month, $64,400.00 yearly, $23.00 per square
foot (PSF) gross
October 13, 2004
City Commission Memorandum
777-11h Street Lease
Page 3 of 3
Sales/Use Tax: Tenant shall also be responsible for all applicable sales and use tax
Parkinq: Tenant may request, from the City's Parking Department, the use of
parking spaces, if available, at Municipal Parking Garage 2-G located
on 1 in Street and Meridian Court. Rates for said spaces are subject
to change, and are currently $60.00 per month, plus applicable sales
and use tax per space.
Securitv Deposit: $5,366.67
The Mayor and City Commission authorized the purchase of the Property to address the
City's ongoing need for administrative office expansion on a graduated basis. While the
Administration has begun implementing the aforestated objective, it also considers that
allowing for this short term office tenancy, at this time, will allow the City to maintain its
revenue stream from the Property until such time the subject space is required for City office
expansion. Additionally, accommodating Hazen and Sawyer is deemed to be in the City's
best interest and will facilitate interaction with the City's Capital Improvement Projects
Office, situated in the same building.
The proposed lease is subject to the requirements of the Shapiro Ordinance. However, the
City only received notice of Hazen and Sawyer's affirmative interest in the office space on
Monday, October 11, 2004 and Hazen and Sawyer required a response no later than
October 21,2004. As such, due to the time constraints, it is recommended that the Mayor
and City Commission consent to the approval of the terms as presented herein and the
Lease Agreement and compliance with the Shapiro Ordinance requirements will be
presented on November 10, 2004.
Section 82-36 through 82-39 (a/k/a Shapiro Ordinance) of the Miami Beach City Code,
governing the sale/lease of public property, provides that the lease of any City-owned
property for a period of five years or less, including option periods, requires the following:
. a competitive public bidding process
. a Planning Department analysis
. an independent appraisal to determine the value of the leasehold interest
. a public hearing to obtain citizen input
The proposed Lease Agreement is for a term of twenty-three (23) months. Any option to
renew shall be at the City's sole discretion. A copy of the planning analysis will be provided
on November 10, 2004.
Based on the foregoing, the Administration recommends that the Mayor and City
Commission adopt the attached Resolution and indicating its approval of the terms and
conditions of the proposed Lease Agreement, and setting the required public hearing on
November 10, 2004.
JMG\~\JD\r-
T:\AGENDA\2004\Oct1304\Regular\777-17th Street Lease.MEM.DOC