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Home My WebLink About2006-26087 Reso RESOLUTION NO. 2006-26087 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN ASSIGNMENT AND FIRST AMENDMENT TO THAT CERTAIN LEASE AGREEMENT BY AND BETWEEN THE CITY AND THE MIAMI BEACH FEDERAL CREDIT UNION (MBFCU), DATED JULY 30, 2003, FOR THE LEASE OF APPROXIMATELY 1350 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, WHICH PROVIDES FOR MBFCU (AS TENANT/ASSIGNOR) TO ASSIGN ITS LEASEHOLD INTEREST TO THE DADE COUNTY FEDERAL CREDIT UNION (AS THE NEW TENANT/ASSIGNEE); FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAME WHEREAS, the City has been leasing to Tenant/Assignor, Miami Beach Federal Credit Union, a portion of the City-owned property, located at 1701 Meridian Avenue, Miami Beach, Florida, for Tenant/Assignor's use as a federal credit union under the terms and conditions of that certain Lease Agreement, dated July 30, 2003; and WHEREAS, the Tenant/Assignor, Miami Beach Federal Credit Union, and the new Tenant/Assignee, Dade County Federal Credit Union, have agreed to a merger of the two credit unions which has been approved by the respective Boards of each credit union, the voting members of the Miami Beach Federal Credit Union, and by the National Credit Union Association; and WHEREAS, Tenant/Assignee has agreed to maintain a Miami Beach branch of the Dade .County Federal Credit Union at the current Miami Beach Federal Credit Union location; and WHEREAS, the Board of the Miami Beach Federal Credit Union and the City are desirous of maintaining said Miami Beach Branch at its current location in order to best serve the City employees; and WHEREAS, the merged credit union entities will now operate under the name of Dade County Federal Credit Union (as the new Tenant/Assignee), thus requiring that the Lease Agreement be assigned and amended to reflect the newly merged entity, the City's consent to the assignment, and the renegotiated terms of the Lease Agreement with the new Tenant/Assignee. 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 approve the attached Assignment and First Amendment to that certain Lease Agreement by and between the City and the Miami Beach Federal Credit Union (MBFCU), dated July 30, 2003, for the lease of approximately 1350 square feet of City-owned property, located at 1701 Meridian Avenue, Miami Beach, Florida, which provides for MBFCU (as Tenant/Assignor) to assign its leasehold interest to the Dade County Federal Credit Union (as the new Tenant/Assignee); further the Mayor and City Clerk are authorized to execute same. PASSED and ADOPTED this 11th day of J~n~ary?!~06. ATTEST: CI MAYOR Robert Parcher David Dermer JMG\TH\JD\rlr F:\DDHP\$ALLV~SSE%777-17th Street\Credit Union~,ssignment. RES.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ,. , COMMISSION ITEM SUMMARY Condensed Title: IResolution Approving Assignment and 1st Amendment to Miami Beach Federal Credit Union Lease Key Intended Outcome Supported: IIncrease resident satisfaction with availbility of commercial service options Issue: IShall the Mayor and City Commission Adopt the Resolution Item Summary/Recommendation: The Miami Beach Federal Credit Union and the Dade County Federal Credit Union (new Tenant/Assignee), have agreed to a merger of the two credit unions. The Dade County Federal Credit Union has agreed to maintain a Miami Beach Branch at its current location in order to best serve the City employees. The DCFCU will pay the City a base rent of $37,800 per year, plus a 3% annual increase, in addition to its proportionate share.of operating expenses. The City has negotiated a 5 year term, with a 4 year 364 day renewal option. The Board of the current Miami Beach Federal Credit Union has recommended, and the City Administration has concluded, that it would serve the City's interest to continue to provide these banking services to City employees at its current location. The Administration recommends the approval of the Resolution. Advisory Board Recommendation: I N/A Financial Information: Financial Impact Summary: City Clerk's Office Legislative Tracking: IJose Damien, Ext 6727 in-Offs: F:\DDHP\$ALL~SSE%777-17th Street\Credit Uni~ =gnment&l stAmendm~ MIAMI BE.ACH AGENDA ITEM ~-" ~-'~ DATE /"*//- ~ MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor David Dermer and Members of the City Commission JanuaryJ°rge M.1Gonzalez,1, 2006 City Manager i~"" ~ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN ASSIGNMENT AND FIRST AMENDMENT TO THAT CERTAIN LEASE AGREEMENT BY AND BETWEEN THE CITY AND THE MIAMI BEACH FEDERAL CREDIT UNION (MBFCU), DATED JULY 30, 2003, FOR THE LEASE OF APPROXIMATELY '1350 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 170'! MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, WHICH PROVIDES FOR MBFCU (AS TENANT/ASSIGNOR) TO ASSIGN ITS LEASEHOLD INTEREST TO THE DADE COUNTY FEDERAL CREDIT UNION (AS THE NEW TENANT/ASSIGNEE); FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAME ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The City has been leasing to the Miami Beach Federal Credit Union (Tenant/Assignor), a portion of the City-owned property, located at 1701 Meridian Avenue, Miami Beach, Florida, for Tenant/Assignor's use as a federal credit union under the terms and conditions of that certain Lease Agreement, dated July 30, 2003. The Miami Beach Federal Credit Union and the Dade County Federal Credit Union (new Tenant/Assignee), have agreed to a merger of the two credit unions which has been approved by the respective Boards of each credit union, the voting members of the Miami Beach Federal Credit Union, and by the National Credit Union Association. The new Tenant/Assignee has agreed to maintain a Miami Beach branch of the Dade County Federal Credit Union at the current Miami Beach Federal Credit Union location. The Board of the Miami Beach Federal Credit Union and the City are desirous of maintaining said Miami Beach Branch at its current location in order to best serve the City employees. The merged credit union entities will now operate under the name of Dade County Federal Credit Union, thus requiring that the Lease Agreement be assigned and amended to reflect the newly merged entity, the City's consent to the assignment, and the renegotiated terms of the Lease Agreement with the new Tenant/Assignee, which includes the following salient points: Term: The Tenant shall be entitled to have and to hold the Demised Premises for a term of five (5) years, commencing on February 1, 2006 (Commencement Date), and ending on January 31,2011. Provided that the Tenant is not in default, the term of this Lease Agreement shall automatically extend for one additional period of four (4) years and three hundred sixty four (364) days, and without the Landlord and/or Tenant being required to take any additional action to extend same. NOTE: It should be noted that the term in the original Lease provided for automatic one year extensions which were left open ended, thereby making the term of the Lease indefinite. In reviewing the proposed Assignment, the City Administration has negotiated a reduction in the Lease term, providing for a five (5) year initial term, and a four (4) year renewal option, at the City's discretion. The original Lease was approved in compliance with the City's Shapiro Ordinance requirements, and as the new term (negotiated as part of the City's consideration for approval of the proposed assignment) provides for a reduction of the former Lease term, the City Attorney's Office has opined that the instant Consent to Assignment and Amendment to Lease can be approved subject to a majority vote of the City Commission, and does not trigger further Shapiro Ordinance issues and requirements with regard to same. Base Rent: Base Rent for the Demised Premises shall begin to accrue on February 1, 2006 (the Commencement Date), and shall be based upon a total leasable space of 1350 square feet. Base Rent shall be due and payable on the first day of each month throughout the term herein. Base Rent for the Demised Premises shall total thirty-seven thousand eight hundred dollars ($37,800.00) per year, payable in monthly installments of three thousand one hundred fifty dollars ($3,150.00). The Base Rent amount shall be increased annually, on the anniversary of the Commencement Date of the Lease in increments of three (3%) percent per year. The Lease Agreement, as amended, will provide a significant base rent increase of approximately $37,800 per year, plus a 3% annual increase (totaling approximately $433,000 over the life of the agreement), above the current base rent being charged to the Miami Beach Federal Credit Union of one dollar ($1.00) per year. Additionally, Dade County Federal Credit Union will also continue to pay their proportionate share of Operating Costs (including real estate taxes, insurance, and common area maintenance). The Board of the current Miami Beach Federal Credit Union has recommended, and the City Administration has concluded, that it would serve the City's interest to continue to provide these banking services to City employees at its current location. Therefore, the Administration recommends that the Mayor and City Commission approve the attached Assignment and First Amendment to that certain Lease Agreement by and between the City and the Miami Beach Federal Credit Union (MBFCU), dated July 30, 2003, for the lease of approximately 1350 square feet of City-owned property, located at 1701 Meridian Avenue, Miami Beach, Florida, which provides for MBFCU (as Tenant/Assignor) to assign its leasehold interest to the Dade County Federal Credit Union (as the new Tenant/Assignee); further the Mayor and City Clerk are authorized to execute same. JMG:TH:JD:rlr F:\DDHP\$ALL~ASSE%777-17th Street\Credit Union\ConsentToAssignment&lstAmendment. MEM.doc