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RESOLUTION NO: 2006-26344
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 MERIDIAN CENTER, LLC, AS LANDLORD, IN THE MONTHLY
AMOUNT OF TWENTY ONE THOUSAND FOUR HUNDRED FORTY
TWO ($21,442.00) DOLLARS, FOR THE PROPERTY (COMPRISING
OF APPROXIMATELY 8,300 TOTAL SQUARE FEET), LOCATED AT
1680 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, TO BE USED BY
THE CITY FOR ADMINISTRATIVE OFFICES FOR THE CITY'S FIRE
DEPARTMENT, FOR A THREE (3) YEAR TERM, COMMENCING ON
DECEMBER 1, 2006, AND ENDING ON NOVEMBER 30, 2009,
DURING WHICH TIME FIRE DEPARTMENT FACILITIES SHALL BE
RENOVATED AND NEW CONSTRUCTION COMPLETED; AND
FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE LEASE AGREEMENT.
WHEREAS, on December 10, 2003, the Mayor and City Commission
adopted Resolution No. 2003-25439, awarding a construction contract to the firm
of Jasco Construction, for the construction of a new Fire Station No.2, and the
renovation of the existing historic building into administrative offices for the
Department; and
WHEREAS, the project was to be constructed in two phases, first the new
Fire Station and subsequently the renovation of the historic building, which will
require the building occupants to be relocated while construction is in progress;
and
WHEREAS, the renovation of the historic building is expected to last
eighteen (18) months starting in February of 2007, thus necessitating the
relocation of the Fire Department staff for approximately two (2) years, starting
from November 2006; and
WHEREAS, the Administration has considered several commercial
properties for lease in the City, and has determined that the property at 1680
Meridian, best meets the needs of the Fire Department, and is available for lease
for a term of three (3) years, commencing on December 1, 2006, and expiring on
November 30, 2009, with the right to sublease the Premises for the third year of
the term; and
WHEREAS, the monthly rent for the proposed lease, compromising of
approximately 8,300 square feet, is $21,442.00; and
WHEREAS, the Landlord will build-out the leased premises to
accommodate the needs of the Fire Department, at the sole cost of the Landlord.
.,-
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 and Meridian Center, LLC., in the monthly amount of twenty one thousand
four hundred forty two ($21,442.00) dollars, for the property (comprising of
approximately 8,300 total square feet), located at 1680 Meridian, Miami Beach,
Florida, to be used by the City for administrative offices for the City's Fire
Department, for a three (3) year term, commencing on December 1, 2006, and
ending on November 30, 2009, during which time Fire Department facilities shall
be renovated and new construction completed; and further authorizing the Mayor
and City Clerk to execute said Lease Agreement.
PASSED and ADOPTED this 11th
day of October ,2006
ATTEST:
J;wJfu~
CITY CLERK
Robert Parcher
David Dermer
JMG/TH/ACV/mis
C:\Documents and Settings\ddhpvela\My Documents\Fire relocation reso.doc
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COMMISSION ITEM SUMMARY
Condensed Title:
Resolution approving a lease agreement between the City and Meridian Center, LLC., for the purpose
of relocating the Fire Department during construction of the new Fire Station 2 and renovation of the
historic Fire Station Buildinq.
Ke Intended Outcome Su orted:
Ensure well-maintained facilities.
Issue:
Should the City of Miami Beach enter into a lease agreement with Meridian Center, LLC?
Item Summary/Recommendation:
The City is presently constructing the new Fire Station 2 building and Emergency Operations Center. This is
scheduled for completion in December 2006. Once this occurs, work will begin or the historic fire station
building that presently houses Fire Administration and Fire Prevention. The resulting construction necessitates
that the City Fire Department personnel affected be relocated. With no vacant property available, the City must
lease property. Available properties had recently been analyzed taking into consideration of the Parking
Department relocation.
The submitted lease terms are for a three year agreement with a sublease clause for the third year should the
City not require the extended time. Meridian Center, LLC has met the terms under the agreement with Palm
Court even though the market value for the 1680 Meridian area is much higher. Additional space in Palm Court
was considered, however parking and public access have reached capacity with the Parking Department. 1680
Meridian is in close proximity to City Hall and there is ample parking as well as public access to the building.
The funding for the lease term, moving costs, etc. will be appropriated from the anticipated year-end FY
2005/06 General Fund surplus.
The Administration recommends that the Mayor and City Commission adopt the Resolution approving the lease
aareement allowinQ for the relocation of the Fire Department Administration and Prevention Divisions.
Advisory Board Recommendation:
I n/a
Financial Information:
Source of
Funds:
Amount
$214,420.00
Approved
To be appropriated from the
anticipated year-end FY 2005/06
General Fund sur Ius
[!]
aSPI
Financial Impact Summary:
Clerk's Office Le islative Trackin
Ana Cecilia Velasco, Asset Manager x 6727
City Manager
T:\AGENDA\2006\oct1106\consent\Fire Dept Relocation SUM.doc
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MIAMI BEACH
AGENDA ITEM
DATE
C7A-
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e MIAMI BEACH
City of Miomi Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~
October 11, 2006 () U
TO:
DATE:
SUBJECT:
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 MERIDIAN CENTER, LLC, AS
LANDLORD, IN THE MONTHLY AMOUNT OF TWENTY ONE THOUSAND
FOUR HUNDRED FORTY TWO ($21,442.00) DOLLARS, FOR THE PROPERTY
(COMPRISING OF APPROXIMATELY 8,300 TOTAL SQUARE FEET), LOCATED
AT 1680 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, TO BE USED BY THE
CITY FOR ADMINISTRATIVE OFFICES FOR THE CITY'S FIRE DEPARTMENT,
FOR A THREE (3) YEAR TERM, COMMENCING ON DECEMBER 1, 2006, AND
ENDING ON NOVEMBER 30, 2009, DURING WHICH TIME FIRE DEPARTMENT
FACILITIES SHALL BE RENOVATED; AND FURTHER AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE THE LEASE AGREEMENT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City is presently constructing the new Fire Station 2 building and Emergency Operations
Center. This is scheduled for completion in December 2006. Once this occurs, work will
begin onthe historic fire station building that presently houses Fire Administration and Fire
Prevention. During this time the Fire Department will need to vacate the historic building and
move to an alternative location. Since the City does not currently have any available
resource to accommodate the department leased space is required. The renovation of the
historic Fire Station Building project is scheduled to commence in December for
approximately two (2) years. The funding for the lease term, moving costs, etc. will be
appropriated from the anticipated year-end FY 2005/06 General Fund surplus.
The City recently reviewed space for the Parking Department for approximately the same
square footage. Meridian Center, LLC has matched all the terms recently approved by
Commission for the Parking Department even though the market for this regional area of the
City sustains a much higher cost per square foot. The close proximity to City Hall and the
available parking for both Fire Department employees and clients are convenient for the
City. Although there is additional space available on the second floor of the Palm Court
building (a portion of which is currently being leased by the City for the Parking Department,)
the available parking and public access to the second floor via the small elevator and
stairwell could not comfortably accommodate another City department.
Commission Memorandum - Fire Department Relocation Lease Agreement
October 11, 2006
Page 2 of 2
The Lease Agreement, as negotiated, includes the following terms and conditions which are
equivalent to those in the Lease Agreement with Palm Court for the Parking Department
(Term Sheet attached as Exhibit 1):
. BASE RENT:
The City of Miami Beach will pay an annual Base Rent for the Demised Premises in
the amount of $21,442 per month which is commensurate with the increase in
square footage.
. TENANT RESPONSIBILITIES FOR UTILITIES:
The City of Miami Beach will be responsible for the utilities for space occupied.
. IMPROVEMENTS:
Solely at the Landlord's expense, the Landlord will make improvements that will
accommodate the needs of the Fire Department as the space is currently in shell
condition. Although the space at Palm Court is currently built-out, the City would
incur a tenant improvement cost to accommodate additional needs of the Fire
Department if it chose to locate in the Palm Court property.
. TERM:
Meridian Center, LLC requests a three year term, but has included a Right to
Sublease clause should the renovation and construction project be completed in the
projected two year timeframe.
JMGITH/ACVlmis
T:\AGENDA\2006\oct1106\consent\Fire Dept Relocation MEM.doc
DEVELOPMENT COMPANY
September 13,2006 .~~.
Ms. Ana-Cecilia Velasco
1700 Convention Center Drive
Miami Beach, FL 33139
Re: 1680 Meridian Center
Miami Beach, FL
Dear Ms. Velasco:
Thank you for your interest in the new office building at 1680 Meridian in Miami Beach,
FL. This proposal will set forth in principle the terms and conditions upon which WSG
Development Company or Assigns is prepared to lease space to City Manager, City of
Miami Beach in this new office building. Please note because of 1680 Meridian's close
proximity to the City of Miami Beach employee's parking facilities, this will save the
City of Miami Beach a substantial amount of money. Therefore, we have not included in
this proposal additional costs for parking. The proposed terms and conditions are as
follows:
LANDLORD:
Meridian Center, LLC.
Attention: Mark Burgin
400 Arthur Godfrey Road
Miami Beach, FL 33140
305-673-3707 (phone)
305-673-6711 (fax)
TENANT:
City Manager, City of Miami Beach
Ana-Cecilia Velasco
1700 Convention Center Drive
Miami Beach, FL 33139
LOCATION:
The Meridian Center, Units 202, 203, and 204
1680 Meridian Center
Miami Beach, FL 33139
PREMISES:
Approximately 8,300 SF. Tenant has the first right
of Offer to lease additional space on the 2nd Floor as
well as vacant space on 3rd Floor. (Each floor is
comprised of 10,610 SF)
TERM:
Three (3) years
400 Arthur Godfrey, Suite 200, Miami Beach, Florida 33140
T: (305) 673-3707 / F: (305) 673-6711
September 13,2006
Ms. Velasco
Page Two (2)
RIGHT TO SUBLEASE: Tenant will have the right to sublease the Premises
commencing on the second anniversary of the lease
term, subject to landlord's approval.
COMMENCEMENT DATE: December 1,2006
RENT: $31.00/RSF
ADDITIONAL RENT: Should real estate taxes increase more than 50%
above the previous base year; tenant will pay its
pro-rated share of the increase above 50%. Should
insurance premiums in any lease year rise more than
100% above the previous lease year, tenant will pay
its pro-rated share of the increase above 100%.
CONDITION OF PREMISES: Landlord to deliver Premises to Tenant per agreed
upon plans and specifications.
IMPROVEMENTS: See attached exhibit A
ELECTRIC: Tenant shall pay its pro-rated share.
USE: The leased premises will be used as general office
space
MAINTENANCE: Landlord shall maintain common areas, roof and
structural integrity of the premises. Tenant shall
keep the leased premised in good condition and
repair in all other respects.
This is a proposal only and is not intended to be legally binding on either party. lithe
tenant is in agreement with the terms outlined in this letter, Landlord will prepare a
definitive Lease Agreement containing the understandings as set forth above and other
such terms and conditions as may be requested by one or both of the parties. Only if both
parties sign such definitive Lease Agreement shall there exist any binding contract or
obligations between the parties.
Meridian Center LLC
By Skyler Steele
400 Arthur Godfrey, Suite 200, Miami Beach, Florida 33140
T: (305) 673-3707/ F: (305) 673-6711
TENANT:
CITY OF MIAMI BEACH
By:
Date:
EXHIBIT A
12 Offices
02 Conference Rooms
53 Data Ports
36 Phone Receptacles
01 Small Kitchen Galley
02 Additional Restroom Facilities
Dropped 2'X4' Acoustical Ceiling
Florescent Lighting
Partitioning
Carpet (Building Standard)
Paint
400 Arthur Godfrey, Suite 200, Miami Beach, Florida 33140
T: (305) 673-3707 / F: (305) 673-6711