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98-22639 RESO RESOLUTION NO: 98-22639 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND GLORIA MILLER ROSENTHAL FOR THE LEASE OF A PORTION OF THE BUILDING LOCATED AT 1833 BAY ROAD, MIAMI BEACH, FLORIDA WHEREAS, the City of Miami Beach has been leasing the second floor of the property located at 1833-37 Bay Road to house certain off-site operations for the Miami Beach Police Department; and WHEREAS, in April of 1997, at the expiration of the lease term, the Police Department's off-site operations remained on a month-to-month basis while alternate sites were considered; and WHEREAS, upon review of the existing inventory of available properties that met the criteria for the proposed use, the City Administration determined that renewing the lease at the existing site 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 Lease Agreement between the City of Miami Beach and Gloria Miller Rosenthal for a portion of the property located at 1833 Bay Road, Miami Beach, Florida be approved as attached hereto for the three-year period commencing on February 1, 1998, and expiring at midnight on January 31, 2001, at the proposed annual rental fee of $36,000.00, ($12.00 per square foot); and the Mayor and City Clerk are herein authorized to execute said Lease Agreement. PASSED AND ADOPTED THIS 21st day of January , 1998. Attest: 1~ MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION _~ ~V4t PAA~ CITY CLERK 1f.f/JIZ ity' ney Ilj-Y'!91 Oat. JD:rd F:\PURC\$ALL\ASSETS\1833BA Y\1833BA Y.RES 12/26/97 CITY OF MIAMI BEACH ~ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 lttp:\\ci.miami-beach. fl. us COMMISSION MEMORANDUM NO. 3 f -98'" TO: Mayor Neisen O. Kasdin and Members of the City Commission DATE: January 21,1998 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUT N THORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AG EMENT BETWEEN THE CITY OF MIAMI BEACH AND GLORIA MILLER ROSENTHAL FOR THE LEASE OF A PORTION OF THE BUILDING LOCA TED AT 1833 BA Y ROAD, MIAMI BEACH ADMINISTRA TION RECOMMENDATION: Approve the Resolution. BACKGROUND: The City of Miami Beach has been leasing the property located at 1833-37 Bay Road to house the Parking Department for many years. In early 1995 the Police Department, which had been using leased space at 1301 Dade Boulevard for certain off-site operations, was informed that it would have to vacate those premises. On February 15, 1995, the City Commission approved the renewal of the lease at 1833-37 Bay Road at a rate of$7.35 per square foot ($1837.50 per month) , thereby allowing for the Police Department's off-site operations to move into the second-floor space which was being vacated by the relocation of a portion of the Parking Department's operations. In April of 1997, at the expiration of the lease term, the Parking Department moved all of its remaining operations to other City-owned facilities. The Police Department's off-site operations remained on a month-to- month basis while alternate sites were considered. ANALYSIS The Office of Asset Management and the Police Department reviewed the existing inventory of available properties that met the criteria for the proposed use. It was determined that the current market rate for similar sites ranged from $15.00 to $17.00 per square foot. These rates did not include costs for the required build-out, telephone lines, computer lines, and other communications infrastructure which is already in place in the existing facility. continued.... AGENDA ITEM C I .8 DATE 1-21-q~ - 2 - The attached Lease Agreement is for approximately three thousand (3,000+/-) square feet (the whole of the second floor), and 800 square feet (40' x 20') of the westernmost portion of the rear yard of the property located at 1833 Bay Road. The lease term is for the three-year period commencing on February 1, 1998, and expiring at midnight on January 31, 2001. The proposed annual rental fee of $36,000.00, equates to $12.00 per square foot, and is to be paid on a monthly basis, in equal installments of$3,000.00. Funding has been obtained via a Federal H.I.D.T.A. (High Intensity Drug Trafficking Area) grant which is in place through the end of 1999. 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 terminate 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: Renewing the lease at the existing site would provide the most cost-effective arrangement as well as the most desirable location for the intended use. SR:~:JD:rd F:\PURC\$ALL\ASSETS\1833BA Y\1833BA Y.COM 12/26/97 2 LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this21stday 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, and 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 0[$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. If the 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 ofthe 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. Assignment 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. Signs. 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 Dama2e 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 injury 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 33139 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 subj ect 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 A2reement. 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: LESSEE: GLORIA MILLER ROSENTHAL CITY OF MIAMI BEACH ~~ :q~/& ~~~~- 111 , MAYOR ATTEST: ~~p~ CITY CLERK F:\PURC\$ALL\ASSETS\1833BA Y\1833BA Y.AGM 12/19/97 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~ /-ifli 6 PROPERTY ADDRESS: LEGAL DESCRIPTION: EXHIBIT "A" 1833-37 Bay Road, Miami Beach, Florida 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