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HomeMy WebLinkAboutMemorandum of Lease Construction Exh,'b,'+ 2. MEMORANDOM OF LEASE CONSTRUCTION Tenant Name: City of Miami Beach Principal Contract: Landlord: Landlord Contact: Building Address: Premises/Size: Premises Condition: Tenant Work: Space Size: Lease Term: Commencement: Use/Concept: Tim Hemstreet - City Manager's office Ana Cecilia Velasco - Asset Manager Palm Court at 23rd Street, Ltd. Palm Court Inc. (general partner) Ron Bloomberg 309 23rd Street, Miami Beach, FL 2nd Floor: Suite#200 1st Floor: Suite#150 (aka 317 23rd Street) Suite 200 consists of fully built-out office suite complete with 5 large private offices, a reception area, two storage/HV AC areas, a private bathroom, kitchen/file area, telecommunications/electrical room areas, open floor plan areas with painted drywall subdivisions, etc. The spaced cooled by 5 separate HV AC units having in excess of 22 tons of air handling capacity. There are over 600 AMPS of electrical service in four separate electrical panels and the entire space is completely pre-wired for with CAT 5E hi-speed telecom wiring with over 100 quadraplex telecom ports throughout the entire premises. The space is considered to be in excellent conditions. Suite 150 requires a complete build-out the costs of which will be addressed below. Tenant shall NOT be permitted to alter any portion of either premises without the landlord's express written consent, not to be unreasonably withheld. 2nd Floor: Suite#200 1 st Floor: Suite#150 (aka 317 23rd Street) Total: 5,700 rentable square feet 1.200 rentable square feet 6,900 rentable square feet The measurement of space includes a blended common area factor ratio of approximately 18%. 2 years Second floor area: July 1, 2006 First Floor area: September 1, 2006 (projected) Second floor - General Business Offices for City of Miami Beach parking department. First floor - parking department meter lock-up and storage area. Renewal Options: Landlord is flexible to month-to-month extensions. Rent: All rent quoted is gross; First and Second Floors:Year 1: $31.00 psf $17,825 per month Year 2: $31.00 psf $17,825 per month Operating Expenses: Tenant shall be responsible for its direct proportionate share of increased building operating expenses, if any, for the second lease year. Build-out Cost: It is anticipated that the gross costs to conduct a "plain vanilla" build-out of the first floor will run approximately $50,000. The projected cost break down is contained in Exhibit "B" attached hereto. It is expected that upon lease execution, the Tenant shall deposit into escrow the entire $50,000 amount. The Landlord shall build the premises with its own funds and upon completion and delivery to tenant, will seek a release of the funds being held in escrow as a reimbursement. Prior to Landlord's commencing any build out of space, landlord shall secure no less than two written bids from certified contractors. If after subtracting all "soft costs" from the overall budget, the bids are in excess of the remaining balance of said $50,000, Tenant shall be required to fund into escrow that amount required to complete the construction costs. Any savings in costs to complete the job will be passed on to Tenant. Security Deposit: Two months the gross Rent or $35,650.00. Guaranty: All rent due during the term of the lease, and the maintenance of the premises by Tenant shall be guaranteed by the City of Miami Beach; Utilities: Electric: Florida Power and Light: Each space shall be separately metered. Accordingly, Tenant shall have all FPL accounts transferred into the name of Tenant and Tenant shall be responsible for its own electrical consumption. Water and Sewer: City of Miami Beach: Water and sewer service is included on the second floor space. However, the first floor will require its own direct connection foe domestic water and accordingly, a separate water and sewer account will need to be established for this first floor space. It is expected the Tenant will be responsible for the costs associated with water and sewer for the first floor. Cleaning/Trash: Basic office cleaning and trash removal will be provided five days per week for the second floor space. Due to the security issues surrounding the first floor space and the fact that the Landlord's cleaning company shall not have keys nor access to the first floor premises, it is expected that Tenant shall be responsible for the clean-up and trash removal for this space, Hours of Operation: Hours of operation are to be determined by tenant. In general, the building hours of operation shall be M-F 7:00 AM to 7:00 PM and SAT and SUN 8:00 AM to 6:00 PM. Assignment: Tenant shall NOT have the right to sublet or assign its space. Broker: There are no brokers involved with this transaction other than Landlord's agent Centaur Realty Organization, Inc. Landlord is responsible for all brokers commISSIOns. Binding Effect: This letter of intent shall be deemed non-binding upon the parties effectuating it. This document is strictly designed as a precursor to a comprehensive lease agreement intended to be executed between the parties. Time of Essence: Timing is deemed of the essence in connection with signing this letter of intent. The conditioned set forth herein are agreed to and accepted this _ day of June 2006. LANDLORD Palm Court at 23rd Street, Ltd. Palm Court, Inc. ~~.~ Ro .:0 . ,. esident.. L"'__ .... ..-.....-,----- -._-~ ------- TENANT: City of Miami Beach By: