The URL can be used to link to this page

Home My WebLink About2006-26223 Reso Inc. RESOLUTION NO: 2006-26223 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, FOR PROPERTY TO BE USED BY THE CITY FOR THE CITY'S PARKING DEPARTMENT OPERATIONS, FOR A TWO (2) YEAR TERM, DURING WHICH TIME DEVELOPMENT OF ALTERNATE FACILITIES TO RELOCATE THE PARKING DEPARTMENT OPERATIONS SHALL BE CONSIDERED; IN ADDITION TO THE RENT, PROVIDING FOR ADDITIONAL BUILD-OUT COSTS, NOT TO EXCEED $70,000, FOR A COIN ROOM AND CUSTOMER SERVICE AREA; AUTHORIZING THE CITY MANAGER TO NEGOTIATE WITH BOTH GOLDWATER REALTY, INC. AND PALM COURT AT 23RD STREET, LTD. AND IF SUCCESSFUL, EXECUTE A LEASE WITH THE SUCCESSFUL LANDLORD WHEREAS, on November 2, 2004, the voters of Miami Dade County approved a referendum supporting the Building Better Communities General Obligation Bond Program (BBC GOB) to provide $2.9 billion to fund more than 300 capital improvements throughout the County over the next 15 to 20 years; and WHEREAS, the City has a total of eight projects that are in advanced stages of renovation, including Old City Hall which has incurred structural damage, and therefore necessitating the need to relocate the City's Parking Department, which is a tenant in the Old City Hall Building, to new leased premises; and WHEREAS, the Administration has considered several commercial properties for lease in the City and at its meeting on June 7, 2006, the City Commission authorized the City Manager to enter into negotiations for a new lease agreement with Goldwater Properties, Inc. and Palm Court at 23rd Street, Ltd., and if successful, to execute a lease with the Landlord of one of the proposed properties, whichever best meets the needs of the Parking Department, for a two year lease, commencing approximately on July 1, 2006, and expiring on June 30, 2008; and WHEREAS, the landlord will be required to build-out the proposed leased premises to accommodate the needs of a secure coin room and customer service area, at an additional cost to the City not to exceed $70,000. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve a lease agreement between the City of Miami Beach, as Tenant, for property to be used by the City for the City's Parking Department operations, for a two (2) year term, during which time development of alternate facilities to relocate the Parking Department operations shall be considered; in addition to the rent, providing for additional build-out costs, not to exceed $70,000, for a coin room and customer service area; authorizing the City Manager to negotiate with both Goldwater Realty, Inc. and Palm Court at 23rd Street, Ltd. and if successful, execute a lease with the successful Landlord. PASSED and ADOPTED this 7th day of June, 2006 ATTEST: ~ud ~ AA (LA CITY CLERK Robert Parcher j~p~\ /~~> ~ V Vice-Mayor Jerry Libbin JMG:TH:ACV:rlr APPROVED NJ TO FORM & LANGUAGI! & FOR EXEcunON c1j:. 0\ \ F :\DDH P\$ALL \ASSET\Palm Court\PalmCou rt. Lease.Amended. RES. doc COMMISSION ITEM SUMMARY Condensed Title: Resolution approving a lease agreement between the City and Palm Court at 23ra Street, ltd., for the purpose of relocating the Parking Department during construction of the new facility on Meridian Avenue adiacent to City Hall. Ke Intended Outcome Su orted: Ensure well-maintained facilities. Issue: Should the City of Miami Beach enter into a lease agreement with Palm Court at 23r Street? Item Summa IRecommendation: The City's Department of Public Works has undertaken the restoration of Old City Hall which has uncovered significant infiltration of water, which damaged the structural frame of the building. The resulting construction necessitates that the City Parking Department be moved. With no vacant property available the City must lease property. Available properties were analyzed taking into consideration square footage, build-out costs, and accessibility to the public. The submitted lease is for a two year term to accommodate the construction of the new Parking Department facilities on Meridian Avenue adjacent to City Hall which will eventually house the Parking Department. The Administration recommends that the Mayor and City Commission adopt the Resolution approving the lease a reement allowin for the relocation of the Parkin De artment. Advisory Board Recommendation: I n/a Financial Information: Source of Amount Account Approved Funds: 1 $89,125 480 0461 000 323 D T~ $70,000 674 480 0461 000 676 3 4. OSPI Total ..... Financial Impact Summary: Ci Clerk's Office Le islative Trackin : Ana Cecilia Velasco, Asset Manager x 6727 Si n-Offs: t Director ACV \2 06\jun0706\consent\PalmC urt.Lease.SUM.doc m ...,. MIAMI BEACH AGENDA ITEM DATE C75 '-7 -o~ lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Mayor David Dermer and Members If ~he pity fommission Jorge M. Gonzalez, City Manager...J1 v\)t J or" June 7, 2006 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND PALM COURT AT 23RD STREET, LTD., AS LANDLORD, IN THE MONTHLY AMOUNT OF SEVENTEEN THOUSAND EIGHT HUNDRED AND TWENTY FIVE ($17,825.00) DOLLARS FOR THE PROPERTY LOCATED AT 309 23RD STREET, MIAMI BEACH, FLORIDA, TO BE USED BYTHE CITY FOR CERTAIN PARKING DEPARTMENT OPERATIONS, FOR A TWO (2) YEAR TERM, COMMENCING ON JULY 1, 2006, AND ENDING ON JUNE 31,2008, DURING WHICH TIME DEVELOPMENT OF ALTERNATE FACILITIES TO RELOCATE THE PARKING DEPARTMENT OPERATIONS SHALL BE CONSIDERED; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID LEASE AGREEMENT IN ADDITION TO THE RENT, PROVIDING FOR ADDITIONAL BUILD-OUT COSTS NOT TO EXCEED $70,000 FOR A COIN ROOM AND CUSTOMER SERVICE AREA ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANAL YSIS The City has undertaken the restoration of Old City Hall which was to initially address exterior renovation and the replacement of windows. After the contractor began the project, significant infiltration of water, which damaged the structural frame of the building, was found to have occurred. In order to address these issues measures were taken to support beams and columns by placing scaffolding underneath, which has caused an impact on tenants. Tenants were notified of the need to vacate and the City assisted the County Clerk's Office in relocating to the old City Library on Washington, Avenue with the Court functions being moved to the County facilities. They will return to the Historic City Hall upon completion of the renovations. The Parking Department must be moved to a location that requires leased property as the City does not currently have any available resource to accommodate the department. The structural damage to Old City Hall was an unforeseen condition until after inception of the demolition. The urgency for this move is based on the contractor being at a stand still until accessibility can be given to complete the project. This lease is for a two year Commission Memorandum - Palm Court Lease Agreement June 7, 2006 Page 2 of 2 term which may be extended as needed to accommodate the construction of the new Parking Department facilities on Meridian Avenue adjacent to City Hall. Of the available properties for lease in the City, four were deemed to meet the needs of the Department (exhibit 1), each property requires the build-out of the coin room and cashier stations. Following please find the listing of the properties and the rationale determining the selected property: 309 23rd Street (Palm Court) - There is 5,700 square feet available on the second floor and 1,200 square feet available on the first floor for the coin room. The gross rent was negotiated at $31 per square foot. The second floor is completely furnished and cabled and is in turn- key condition with the exception of the reception and cashier stations. There is City and on-street parking available for employees and customers. In addition, there is available space that could potentially house portions of the Fire Department during the construction phase of the historic building. The City has recently developed this area as a part of the City Center RDA, with the Ballet, the Bass Museum, and the New Library Building. By locating a City Department here, it will further bring the public to this area of focus. 1620 Washington Avenue - There is 7,320 square feet available in this building on the ground floor retail. The primary concerns were the cost was $50+10, almost double the selected property and the space was raw and would require complete build-out. 1688 Meridian Avenue - There is 9,458 square feet available located on the top floor and is furnished. The primary concerns were the five year mandatory contract which serves as a liability to the City and the excess of 2,000 square feet. The cost per square foot was priced higher than the selected property. 1691 Michigan Avenue - There is 7,000 square feet available on this property. The primary concern was that the space required complete build-out which made it prohibitive although the cost per square foot was competitive. 1801 Bay Road - There is 6,800 square feet available on this property. The primary concern was due to the lack of available parking the City would be required to enter into additional rental of 16,000 square foot of parking in order to address the additional vehicular traffic to this area, although the cost per square foot for the property was competitive. The Lease Agreement, as negotiated, includes the following additional terms and conditions (Term Sheet attached as Exhibit 2): . BASE RENT: The City of Miami Beach will pay an annual Base Rent for the Demised Premises in the amount of $14,375 per month. Commission Memorandum - Palm Court Lease Agreement June 7, 2006 Page 2 of 2 . TENANT RESPONSIBILITIES FOR UTILITIES: The City of Miami Beach will pay charges for water and sewer for the first floor, cable, internet, and telephone service provided to the facility including, without limitation, all hookup fees and impact fees. These fees are currently being incurred by the City in the Parking Department's present location. . IMPROVEMENTS: At the City's expense the Landlord will make improvements that will accommodate the need of the Parking Department to secure a coin room for revenue collected and accommodate secure cashier stations and shall secure no less than two written bids from certified contractors. These improvements are not to exceed $50,000 for the first floor coin room and $20,000 for the second floor reception and four cashier stations; the cost is commensurate with industry standards. JMG/TH/ACV/mis T:\AGENDA \2006\jun0706\consent\PalmCourt. Lease.MEM.doc z )> m CIl x 0 "tI CIl ~ - 0 CD CD - 0- CIl 'a ;::;.: CD :s: ;:I. .... OJ ~ '< Ql :::::l S, C/l Ql a: "lJ ~ !!!. CO 0 C/l m ::u ;!! Q) CD "T1 !!l. CD ::u C" 3 S. ..c CD CD S' 3' c: a- CD 0 III ~. :::::l C CD - c. c. S' ce CD '0 :J I\) :J () Co) "tI III a 0 :J 0 0 C) III en '0 Cil C. c !!l. lQ 3' CD 0 III ~ C. N C. ;:!. en S' "lJ Co) 0 en 0' CD 0 ce C/l a. 0 '0 :J C. '0 "T1 (1) c: III 0 en 0 III m (ii' <0 ;:I. CD '0 - CD X ce 0 0 iil S" '0 m a 0 0 CD X - '0 en en r '0 () OJ Qo ~ () OJ .... 0 III a :> III :E III III 0) .!!. :J en 3 en N c. '0 s: s: III 0 CD III CD C) 5" III Ul ;:!. (ii' ::u ~ c. Cil :e a. 0 c. lJl 0' S' CD CD c. a- lii 5. :J a- CD III 0 en ~ Ul x CD Cil S' :J .... ~ -.j ::T c: '0 g. 0 01 W :i' :i' CD III Q 0 :J S" en 0 0 I\) lC lC en CD w S' 0 0 - CD C. ;,g Q. 0 0 !II 0 "lJ "lJ :l III m C/l C/l ~ :J CD :n :n :J 0 CD c: !!!.. r '0 ~ III OJ :J ?:; .... ~ III a :J III 0) :J :J en ..... go ... C. '0 s: c: CD !!l. () go ... 5" 0 ~ :> III ;:!. (ii' ::u '< 31: :l a. 0' S' '< CD CD s: ~ 8 ~ CD 0 :J a- ~ S' I\) S' I\) ~ ... < CD III 0 C" I\) -.j <0 is: III ~ Cil '< 0 c.n @ c.n w :.,. CD S' C ?' iii' lJl CD III (") 0 0 " co 01 :J S" en J:! Cil c. 0 en 01 0 co :l 5. en CD CD 0 ::T W C>> 0 ~ c: CD C. III C. ~. 0 !II en 0 w :i' CD CD C. lC r '0 (") ~ OJ (") ~ .... ~ III a :> ;,g III :> $ ::T :J 0 en CD '0 s: s: s: c. 0 III CD .... 5" ;:!. (ii' :J ::u c. S' 31: r- a. :J 0 ~ S' o' S' c: CD 0 ~ i'j' :J !!!.. a- CD C n CD III 0 en 01 S" -.j ::T 0 x Cil ~ C. '0 CD S' :J CD " " 0' S' CD III 0 g. c. 0 ![ 0 III :J S" en Cil S' S' 0 0 :l en CD 0 CD C. III 0 .... ~ !II en ffi 0 CD !!l. en CD CD '< a CD ... III III 3 ~ ~ ~ . . .... " :J CD I\) . s>> '0 go !!. c. III :J I\) -.j I\) III C) S' III I\) N 0 0 ~ .... 0' Dr CD a- (1) 0 0 ~ -.j 0 01 0 S' lJl "tI :J r.., -.j ce III Cil 0. ::u en III 0 !II :J <0 ..c Cil '< en w in ;:: 'a 0 '0 3 a- ::a 51l 0 '< x (1) 0 CD :J 0 ... ~ ~ I\) 00 III ;:I. :J '< ~ en 5' III W 0 C. '< 5' x '< ;::;: CD ~ CD 0 iil 0 (ii' en 0 Q' ~ en ~ II en .0 ;::