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HomeMy WebLinkAboutMeridian Center LLC Lease Agreement tfl ()(!}~.. :? 6 3 ~$1 C 7/l - J ofpt:, LEASE AGREEMENT THIS LEASE AGREEMENT, made this c2- day January, 2007, by and between MERIDIAN CENTER, LLC, a Florida limited liability company, (hereinafter referred to as "Landlord"), and the CITY OF MIAMI BEACH, a Florida municipal corporation, (hereinafter referred to as "City" or "Tenant"). 1. Demised Premises. Landlord, in consideration of the rentals hereinafter reserved to be paid and of the covenants, conditions and agreements to be kept and performed by the Tenant, hereby leases, lets and demises to the Tenant, and Tenant hereby leases and hires from the Landlord, in Landlord's building known as Meridian Center located at 1680 Meridian Avenue, Miami Beach, Florida, 33139 (the "Building"), referred to and more fully described as follows: The Meridian Center, Units 202, 203 and 204 located at 1680 Meridian Avenue, Miami Beach, Florida 33139 encompassing approximately 8,300 rentable square feet, which may be more particularly described in Exhibit "A" attached hereto and made a part hereof (the "Premises" or "Demised Premises"). 2. Term. 2.1 The Tenant shall be entitled to have and to hold the Demised Premises for aterm of three (3) years, commencing on the 1st day of February, 2007 (the "Commencement Date"), and ending on the 31st day of January, 2010 (the "Termination Date"). 2.2 Intentionally Deleted. 2.3 In the event of any damage to the Premises as a result of Tenant's use, Tenant agrees that it shall continue to be liable for all repairs or damages which may be suffered by Landlord as a result of Tenant's use of the Leased Premises or Building. 3. Rent. 3.1 Base Rent: Base Rent (which Rent shall also include Tenant's proportionate share of Operating Expenses, as defined in Subsection 3.2.1, for the term of the Lease) shall commence on February 1, 2007 (the "Rent Commencement Date"). Tenant agrees that it shall make Rent payments monthly on the first day of each month throughout the term herein.,--ln connection with the first rental payment, Tenant agrees that if the Rent Commencement Date is a date other than the first day of the month, it shall prorate the Rent for that portion of the month and pay same as an addition to the next regularly scheduled monthly payment. 3.1.1 The total annual Base Rent for the Demised Premises shall be Two Hundred Fifty Seven Thousand Three Hundred and No/100's Dollars ($257,300.00) per year ($31.00 per rentable square foot),which shall be payable in monthly installments, on the first day of each month of the term hereof, at an amount equal to Twenty One Thousand Four Hundred Forty One and 67/100's ($21,441.67) per month, . 3.1.2 Nothwithstanding anything contained in Subsection 3.1 above, Tenants shall not be obligated to commence paying rent pursuant to the Lease until such time as Landlord has substantially completed the Tenant Build-Out Improvements, pursuant to Section 8 of the Lease. 3.1.3 Intentionally Deleted. 3.1.4 Late Charge: Intentionally Deleted. 3.2 Additional Rent: 3.2.1 Operating Expenses: "Operating Expenses" shall mean the total cost and expenses, including property taxes and insurance, (except as provided in Subsections 3.2.2 and 3.2.3) incurred by Landlord in operating, repairing, and maintaining the Common Facilities (hereinafter defined) actually used or available for use by the Tenant and its employees, agents, servants, customers and invitees. "Common Facilities" shall mean all areas, space, equipment and special services, including without limitation, water service to the Building, sewer service to the Building, trash removal from the building, costs incurred for gardening and landscaping, repairing and maintaining elevator(s), painting, basic janitorial services, lighting, cleaning, striping, policing, removing garbage and other refuse and trash, repairing and maintaining sprinkler systems, water pipes, air-conditioning systems, temperature control systems, and security systems, fire alarm repair and maintenance and other equipment in the Building common areas and the exterior and structural portions of the Building, paving and repairing, management fees and the Landlord's employment expenses to employees furnishing and rendering any services to 3 the common areas provided by the Landlord for the common or joint use and/or benefit of Tenant, and its employees, agents, servants, customers and invitees. With the exception of real estate taxes and insurance, as outlined in Subsections 3.2.2 and 3.2.3 below, the Base Rent amount in Subsection 3.1.1 shall include Tenant's proportionate share of Operating Expenses for the term. The Tenant's proportionate share is deemed to be thirteen and seventy-three one hundredths (13.73%) percent; this share is subject to change in the event that Tenant exercises its Right of First Offer, pursuant to Section 41 herein. 3.2.2 Property Taxes: Landlord agrees that in connection with any increase in the real estate tax portion of the Operating Expenses after the first Lease year, there will be no pass-through to Tenant for the first fifty (50%) percent increase in the Building's real estate taxes (if any). However, if the real estate taxes increase by more than 50% from the prior Lease year, Tenant acknowledges that, commencing in the second Lease year, it shall pay its proportionate share of such increase beyond such 50% figure. 3.2.3 Insurance: Landlord agrees that in connection with any increase in the insurance portion of the Operating Expenses after the first Lease year, there will be no pass-through to Tenant for the first one hundred (100%) percent increase in the Building's property insurance (if any). However, if the insurance increases by more than 100% from the prior Lease year, Tenant acknowledges that it shall pay its proportionate share of such increase beyond such 100% figure. 3.3 Tenant Electrical Costs: It is expressly understood and agreed that Tenant shall be directly responsible for all electrical uses and charges for any electrical use within the Premises. Tenant shall only be responsible for incurred electrical costs as of the Rent Commencement Date or in the event that the Tenant Build-Out Improvements have not been substantially completed on the Rent Commencement Date, then the provisions of Subsection 8.6 shall control. 3.4 Sales Tax: Landlord acknowledges that Tenant is exempt from the payment of Florida sales tax and Tenant shall provide all requisite exemption certification to Landlord which information shall be set forth in "Exhibit 3.4" attached hereto and made part hereof. 4 4. Location for Payments. All rents or other payments due hereunder shall be paid to Landlord at the following address: c/o WSG Development Company 400 Arthur Godfrey Road, Suite 200 Miami Beach, FL33140 Attn: Mark Burgin 5. Parking. Intentionally Deleted. 6. Security Deposit. Intentionally Deleted. 7. Use and Possession of Demised Premises. 7.1 The Demised Premises shall be used by the Tenant as an office location for the City of Miami Beach Fire Department's operations. Said Demised Premises shall generally be open for Tenant's use Monday through Friday, from 6:00 AM until 7:00 PM. Nothwithstanding the preceding use, Tenant reserves the right to utilize the Demised Premises for any other public purpose, subject to the prior written approval by Landlord, which approval shall not be unreasonably witheld. 7.2 Tenant will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by public law, ordinance or government regulation, or that may be dangerous to life, limb or property. Tenant may not commit waste on the Demised Premises, use the Demised Premises for any illegal purpose, or commit a nuisance on the Demised Premises. In the event that the Tenant uses the Demised Premises for any purposes not expressly permitted herein, then the Landlord may declare this Lease in default pursuant to Section 18, or without notice to Tenant, restrain such improper use by injunction or other legal action. 8. Improvements. 8.1 Landlord has agreed to undertake construction of certain Tenant-requested improvements to the Demised Premises (the "Tenant Build-Out Improvements"). Upon execution of this Lease by the parties hereto, Landlord and Tenant shall use reasonable good faith efforts and work together in the development of plans and specifications for the Tenant Build- Out Improvements, which agreed upon Improvements shall be delineated as Exhibit 8.1.2 to this Lease. 5 8.1.1 Intentionally Deleted. 8.1.2 All plans and specifications for construction of the Tenant's Build-Out Improvements must be approved, in writing, by the City Manager or his designee acting in his proprietary capacity, prior to Landlord proceeding to secure the necessary regulatory approval(s) (if applicable) and building permits(s) for same. 8.2 Provided Landlord has obtained all necessary approvals (both proprietary and regulatory), and provided further that all necessary permits have been obtained, Landlord shall proceed with construction of Tenant's Build-Out Improvements and shall use its best efforts to have said improvements substantially completed on or before March 15,2007. 8.3 Upon completion of construction of the Tenant Build-Out Improvements, Landlord shall notify Tenant, in writing, of its intent to apply for a Certificate of Occupancy. Upon receipt of such notice, Tenant shall be permitted to inspect the improvements to determine that they have been substantially completed in accordance with the approved plans and specifications. "Substantial Completion" shall be defined as the date certified by the Tenant (acting through the City Manager or his designee) in writing that all conditions and requirements of the building permit(s) and regulatory agencies have been satisfied and the improvements have been sufficiently completed in accordance with the approved plans and specifications, so that the portions of the Demised Premises for which the Tenant Build-Out Improvements have been constructed, and the improvements themselves, are available for beneficial occupancy by Tenant. A Certificate of Occupancy (CO) must also be issued for Substantial Completion to be achieved. 8.4 Tenant's obligation to pay Rent for the Premises, as defined in Subsection 3.1.1, shall only commence the sooner of (i) the date Tenant takes possession of the Premises, or (ii) the date Landlord has obtained a Certificate of Occupancy for the Tenant Build-Out Improvements. Notwithstanding the preceding sentence, in no event shall Tenant be required to commence payment of the Base Rent, as set forth in Subsection 3.1.1, until Landlord achieves Substantial Completion of the Tenant Build-Out Improvements. 8.5 Notwithstanding anything contained herein to the contrary, provided Landlord has diligently prosecuted construction ofthe Tenant Build-Out Improvements for the Premises, which actions shall include, but not be limited to, the application for and obtaining of any and all required approvals (i.e. building permit, etc.), but for reasons outside of Landlord's control, including events of force majeure, construction is delayed, it is understood that the anticipated completion date, as set forth in Subsection 8.2, may be commensurately extended without incident or penalty to Landlord; provided Tenant shall 6 receive a commensurate extension of Tenant's obligation to pay Base Rent for the Premises. 8.5.1 Force Majeure events shall include, but not be limited to, acts of God, and/or power interruptions which could delay work to Premises, delays in the municipal process that might prevent permitting or inspections to the Premises, etc. 8.6 In the event Landlord has not substantially completed the Tenant Build-Out Improvements on or before March 15,2007, then Tenant, at its sole option and discretion, may deem Landlord in default of the Lease Agreement; or may, upon written request by Landlord, consent to an extension for Landlord to substantially complete the Tenant Build-Out Improvements. In no event shall Tenant be required to commence payment of the Base Rent in Subsection 3.1.1, or electrical chages in Subsection 3.3, until Landlord's Substantial Completion of the Tenant Build-Out Improvements. 8.7 Intentionally Deleted. 8.8 In the event Tenant wishes to additionally improve or alter the Demised Premises (beyond Landlord's obligation to construct the Tenant Build-Out Improvements), the plans for such improvements shall be submitted to the Landlord for the Landlord's prior written consent, which will not be unreasonably withheld or delayed. All permanent (fixed) improvements to the Demised Premises shall remain the property of the Landlord upon termination of the Lease. Upon termination of the Lease, all personal property and trade fixtures belonging to the Tenant may be removed by the Tenant from the Demised Premises without damage to the Demised Premises. Tenant will permit no liens to attach to the Demised Premises arising from, connected with or related to the construction of the additional improvements undertaken by Tenant pursuant to this Subsection 8.8. Moreover, such construction shall be accomplished through the use of licensed, reputable contractors who are acceptable to Landlord, approval of which will not be unreasonably withheld. Any and all approvals and/or permits required for the installation of additional improvements shall be the sole responsibility of Tenant. 8.9 The requirements in Subsection 8.8 for submission of plans and the use of specific contractors shall not apply to maintenance or repairs which do not exceed Ten Thousand ($10,000) Dollars, provided that the work is not structural, and provided that it is permitted by applicable law. 8.10 Intentionally Deleted. 7 9. Landlord's Right of Entry. 9.1 The Landlord, or its authorized agent or agents, shall not have the right to enter upon the Demised Premises without the prior consent of Tenant and it is acknowledged that the Premises shall be secured by an alarm system to be installed by Tenant at Tenant's sole cost. Notwithstanding the preceding sentence, Landlord shall have access to the Premises in the event of an emergency at which time the alarm company or an emergency contact from the City of Miami Beach will be notified for assistance to gain entry to the Premises. Tenant agrees that it shall issue one key to the Leased Premises to Landlord. Tenant is allowed and shall be permitted to reasonably enjoy the Leased Premises and conduct its business without interruption or interference. If required, Landlord shall provide reasonable notice, in writing, to Tenant and shall enter the Leased Premises only when accompanied by an authorized representative of the Tenant (unless access is required during an emergency event). Nothing herein shall imply any duty on the part of the Landlord to do any work that under any provisions of this Lease the Tenant may be required to perform, and the performance thereof by the Landlord shall not constitute a waiver of the Tenant's default. 10. Tenant's Insurance. Landlord acknowledges that Tenant is a Florida municipal corporation and is self- insured. Upon Landlord's written request, Tenant shall have its Risk Manager provide Landlord with written confirmation of Tenant's self-insurance. 11. Property Taxes and Assessments. For the purposes of this Section and other provisions of this Lease: 11.1 The term "Property Taxes" shall mean (i) the real estate taxes, assessments, and special assessments of any kind which may be imposed upon the tax lot on which the Building is constructed (the "Land") and (ii) any expenses incurred by Landlord in obtaining a reduction of any such taxes or assessments. 11.2 The term "Property Tax Year" shall mean the period of twelve (12) calendar months, beginning on January 1st of each year. 11.3 The term "Tenant's Proportionate Share" shall mean the ratio that the square footage of the Demised Premises bears to the square footage of the leasable space in the entire Building. Tenant proportionate share shall be deemed to be thirteen and seventy-three one hundredths (13.73%) percent; however, Tenant's proportionate share may be subject to change in the event that Tenant exercises its Right of First Offer pursuant to Section 41 hereof. 12. Assignment and Subletting. 8 12.1. At any time after the end of the second year of the Lease term, Tenant shall have the right to assign or sublet the Demised Premises, in whole or in part, with the prior written consent of Landlord, which consent shall not be unreasonably withheld. If granted the making of any assignment will release Tenant from any of its obligations under this Lease. 12.2 Any consent by the Landlord to any act of assignment shall apply only to the specific transaction thereby authorized. Such consent shall not be construed as a waiver of the duty of the Tenant or the legal representatives or assigns of the Tenant, to obtain from the Landlord consent to any other or subsequent assignment, or as modifying or limiting the rights of the Landlord under the foregoing covenants of the Tenant not to assign without such consent. 12.3 Any violation of the provisions of this Lease, whether by act or omissions, by a sub-tenant shall be deemed a violation of such provision by the Tenant, it being the intention and meaning of the parties hereto, that the Tenant shall assume and be liable to the Landlord for any and all acts and omissions of any and all sub-tenants. 13. Maintenance and Repair. 13.1 Tenant shall maintain the Demised Premises and the fixtures and appurtenances therein, and at its sole cost and expense shall make all repairs thereto as and when needed to preserve them in good working order and cond ition. Land lord shall be responsible for the maintenance of the roof, the exterior of the Building, the structural electrical and plumbing (other than bathroom fixtures within the Demised Premises), the common areas and the HVAC system (however Tenant shall be responsible for periodically changing the air filters for each air handling unit in the Demised Premises subject to the Landlord providing to Tenant a maintenance schedule and documentation of system requirements). Landlord shall maintain and/or repair those items that it is responsible for, so as to keep same in proper working condition. Tenant shall also be responsible for all interior walls and the interior of all windows and interior and exterior of all doors. 13.2 All damage or injury of any kind to those fixtures and appurtenances in the Demised Premises that are Tenant's responsibility (as provided in Subsection 13.1), except damage caused by the wrongful acts or negligence of the Landlord, shall be the obligation of Tenant, and shall be repaired, restored or replaced promptly by Tenant at its sole cost and expense to the satisfaction of Landlord. 13.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to the original work or installations and shall be done in good and workmanlike manner. 9 13.4 If Tenant fails to make such repairs or restorations or replacements, the same may be made by the Landlord, at the expense of Tenant, and all sums spent and expenses incurred by Landlord shall be collectable as Additional Rent and shall be paid by Tenant within ten (10) days after rendition of a bill or statement thereof. 14. Governmental Regulations. The Tenant covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City governments, and any and all of their departments and bureaus applicable to the Demised Premises. 15. Liens. Tenant will not permit any mechanics, laborers, or material man's liens to stand against the Demised Premises or improvements for any labor or materials to Tenant or claimed to have been furnished to Tenant's agents, contractors, or sub-tenants, in connection with work of any character performed or claimed to have performed on said premises, or improvements by or at the direction or sufferance of the Tenant, provided however, Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Tenant shall give the Landlord reasonable security as may be demanded by Landlord to insure payment thereof and prevent sale, foreclosure, or forfeiture of the Demised Premises or improvements by reasons of such non-payment. Such security need not exceed one and one half (1 %) times the amount of such lien or such claim of lien. Such security shall be posted by Tenant within ten (10) days of written notice from Landlord, or Tenant may "bond off' the lien according to statutory procedures. Tenant will immediately pay any judgment rendered with all proper cost and charges and shall have such lien released or judgment satisfied at Tenant's own expense. 16. Enforcement. Tenant agrees to pay the Base Rent and any Additional Rent herein reserved at the time and in the manner aforesaid, and should said rents herein provided, at any time remain due and unpaid for a period of forty five (45) days after the same shall become due, the Landlord may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately or the Landlord may pursue any other remedies enforced by law. 17. Condemnation. 17.1 If at any time during the term of this Lease (and any renewal term hereunder), all or any part or portion of the Demised Premises are rendered untenantable, taken, appropriated, or condemned by reason of Eminent Domain proceedings (except if the Eminent Domain proceedings are initiated by the City of Miami Beach), then this Lease shall be terminated as of the 10 date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by reason of this Lease or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date, and the Tenant shall pay any and all rents, additional rents, utility charges, or other costs including excess taxes for which it is liable under the terms of this Lease, up to the date of such taking. 17.2 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the Landlord in any such Eminent Domain proceeding, excepting, however, the Tenant shall have the right to claim and recover from the condemning authority, but not from the Landlord, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business by reasons of the condemnation and for or on account of any cost or loss which Tenant might incur in removing Tenant's furniture and fixtures. 18. Default. 18.1 Default by Tenant: At the Landlord's option, any of the following shall constitute an Event of Default under this Lease: 18.1.1 The Base Rent, Additional Rent, or any installment thereof is not paid promptly when and where due within ten (10) days of the due date (taking into consideration the grace period provided) and if Tenant shall not cure such failure within ten (10) business days thereafter; 18.1.2 Any other payment provided for under this Lease is not paid promptly when and where due; 18.1.3 The Demised Premises shall be deserted, abandoned, or vacated; 18.1.4 The Tenant shall fail to comply with any material term, provision, condition or covenant contained herein other than the payment of rent and shall not cure such failure or commence to cure such failure within fifteen (15) days after the receipt of written notice from Landlord specifying any such default; or if such default(s) is of a nature that it cannot be reasonably cured within fifteen (15) days, provided Tenant has commenced and is continuing diligently to cure said default(s) beyond the initial fifteen (15) day period; 18.1.5 Receipt of notice of violation from any governmental authority having jurisdiction dealing with a code, regulation, ordinance orthe like, which remains uncured for a period of fifteen (15) days from 11 its issuance, or if such default(s) is of a nature that it cannot be reasonably cured within fifteen (15) days, provided Tenant has commenced and is continuing diligently to cure said default(s) beyond the initial fifteen (15) day period. 19. Rights on Default. 19.1 Rights on Default: In the event of any default by Tenant as provided herein, Landlord shall have the option to do any of the following in addition to and not in limitation of any other remedy permitted by law or by this Lease; 19.1.1 Terminate this Lease, in which event Tenant shall immediately surrender the Demised Premises to Landlord. 19.1.2 It is expressly agreed and understood by and between the parties hereto that any installments of rent accruing under the provisions of this Lease which shall not be paid when due shall bear interest at the maximum legal rate of interest per annum then prevailing in Florida from the date when the same was payable by the terms hereof, until the same shall be paid by Tenant. Any failure on Landlord's behalf to enforce this Section shall not constitute a waiver of this provision with respect to future accruals of past due rent. No interest will be charged for payments made within the grace period, such grace period to be defined as within five (5) days of the due date. 19.1.3 If Tenant shall default in making any payment of monies to any person or for any purpose as may be required hereunder, Landlord may pay such expense but Landlord shall not be obligated to do so. Tenant upon Landlord's paying such expense shall be obligated to forthwith reimburse Landlord for the amount thereof. All sums of money payable by Tenant to Landlord hereunder shall be deemed as rent for use of the Demised Premises and collectable by Landlord from Tenant as rent, and shall be due from Tenant to Landlord on the first day of the month following the payment of the expense by Landlord. 19.1.4 The rights of the Landlord under this Lease shall be cumulative but not restrictive to those given by law and failure on the part of the Landlord to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 19.2 Default by Landlord: The failure of Landlord to perform any of the covenants, conditions and agreements of the Lease which are to be performed by Landlord and the 12 continuance of such failure for a period ofthirty (30) days after notice thereof in writing from Tenant to Landlord (which notice shall specify the respects in which Tenant contends that Landlord failed to perform any such covenant, conditions and agreements) shall constitute a default by Landlord, unless such default is one which cannot be cured within thirty (30) days because of circumstances beyond Landlord's control, and Landlord within such thirty (30) day period shall have commenced and thereafter shall continue diligently to prosecute all actions necessary to cure such defaults. However, in the event Landlord fails to perform within the initial thirty (30) day period provided above, and such failure to perform prevents Tenant from operating its business in a customary manner and causes an undue hardship for the Tenant, then such failure to perform (regardless of circumstances beyond its control) as indicated above, shall constitute a default by Landlord. 20. Indemnity Against Claims, Costs and Charges: Landlord acknowledges that Tenant is precluded from indemnifying against claims, costs and charges pursuant to Florida Statute 768.28. 21. Indemnification Against Claims. Intentionally Deleted. 22. Signs and Advertising. Without the prior written consent of Landlord, Tenant shall not permit the painting and display of any signs, plaques, lettering or advertising material of any kind on or near the Demised Premises. All signage shall comply with signage standards established by Landlord and comply with all applicable building codes, and any other Municipal, County, State and Federal laws. 23. Effect of Conveyance. The term "Landlord" as used in the Lease means only the owner for the time being of the land and Building containing the Demised Premises, so that in the event of any sale of said land and Building, or in the event of a lease of said Building, the Landlord shall be and hereby is entirely freed and relieved of all covenants and obligations of the Landlord hereunder, and it shall be deemed and construed without further agreement between the parties, or between the parties and the purchaser at such sale, or the lease of this Building, that the purchaser or Tenant has assumed and agreed to carry out all covenants and obligations of the Landlord hereunder. 24. Damage to the Demised Premises. 24.1 If the Demised Premises shall be damaged by the elements or other casualty not due to Tenant's negligence, or by fire, but are not thereby rendered untenantable, as determined by Landlord, in whole or in part, and such damage is covered by Landlord's insurance, if any, (hereinafter referred to as "such occurrence"), Landlord, shall, as soon as possible after such 13 occurrence, utilize the insurance proceeds to cause such damage to be repaired and the rent shall not be abated. If by reason of such occurrence, the Demised Premises shall be rendered untenantable, as determined by Tenant, only in part, Landlord shall as soon as possible utilize the insurance proceeds to cause the damage to be repaired, and the rent meanwhile shall be abated proportionately as to the portion of the Demised Premises rendered untenantable; provided however, if the Demised Premises are by reason of such occurrence, rendered more than 50% but less than 100% untenantable, as determined by Landlord, Landlord shall promptly obtain a good faith estimate of the time required to render the Demised Premises tenantable. If such time exceeds sixty (60) days, the Tenant shall have the option of canceling this Lease, which option shall be exercised by Tenant in writing within ten (10) days of receipt of notice of same from Landlord. 24.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, the Landlord shall utilize the insurance proceeds to cause such damage to be repaired and the rent meanwhile shall be abated in whole; provided, however, that Landlord shall have the right, to be exercised by notice in writing delivered to Tenant within sixty (60) days from and after said occurrence, to elect not to reconstruct the destroyed Demised Premises, and in such event, this Lease and the tenancy hereby created shall cease as of the date of said occurrence, the rent to be adjusted as of such date. If the Demised Premises shall be rendered wholly untenantable, the Tenant shall have the right, to be exercised by notice in writing, delivered to Landlord within ten (10) days from and after said occurrence, to elect to terminate this Lease, the rent to be adjusted accordingly. Notwithstanding any clause contained in this Section, if Landlord becomes self insured or the damage is not covered by Landlord's insurance, then Landlord shall have no obligation to repair the damage, but Landlord shall advise Tenant in writing within ten (10) days of the occurrence giving rise to the damage and of its decision not to repair, and the Tenant may, at any time thereafter, elect to terminate the Lease, and the rent shall be adjusted accordingly. 25. Quiet Enjoyment. The Tenant shall enjoy quiet enjoyment of the Demised Premises and shall not be evicted or disturbed in possession of the Demised Premises so long as Tenant complies with the terms of this Lease. 26. Waiver. 26.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of Landlord to insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Lease, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, 14 provisions or options but the same shall continue and remain in full force and effect. 26.2 A waiver of any term expressed herein shall not be implied by any neglect of Landlord to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 26.3 The receipt of any sum paid by Tenant to Landlord after breach of any condition, covenant, term or provision herein contained shall not be deemed a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation, and not as rent, unless such breach be expressly waived in writing by Landlord. 27. Notices. The addresses for all notices required under this Lease shall be as follows, or at such other address as either party shall be in writing, notify the other: LANDLORD: WSG Development Company 400 Arthur Godfrey Road Suite 200 Miami Beach, FL 33140 Attn: Mark Burgin TENANT: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With copy to: Asset Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 All notices shall be hand delivered and a receipt requested, or by certified mail with "Return Receipt" requested, and shall be effective upon receipt. 28. Entire and Binding Agreement. This Lease contains all of the agreements between the parties hereto, and it may not be modified in any manner other than by agreement in writing signed by all the parties hereto or their successors in interest. The terms, covenants and conditions contained herein shall inure to the benefit of and be binding upon Landlord and Tenant and their respective successors and assigns, except as may be otherwise expressly provided in this Lease. 15 29. Provisions Severable. If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 30. Captions. The captions contained herein are for the convenience and reference only and shall not be deemed a part of this Lease or construed as in any manner limiting or amplifying the terms and provisions of this Lease to which they relate. 31. Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall include the singular, and the use of one gender shall include all genders. 32. Governing Law. This Lease shall be governed by and construed in accordance with the law of the State of Florida. 33. Limitation of Liability. Intentionally Deleted. 34. Attorneys Fees. If it becomes necessary for Tenant or Landlord to enforce their respective rights under this Agreement or any part hereof through litigation, Tenant and Landlord agree that the prevailing party shall be entitled to recover from the other party all costs and expenses of such litigation, including a reasonable attorney's fee and costs, for all trial and appellate proceedings. 35. Surrender of the Demised Premises. The Tenant shall, on or before the last day of the term herein demised, or the sooner termination thereof, peaceably and quietly leave, surrender and yield upon to the Landlord the Demised Premises, together with any and all equipment, fixtures, furnishings, appliances or other personal property, if any, located at or on the Demised Premises and used by Tenant in the maintenance, management or operation of the Demised Premises, excluding any trade fixtures or personal property, if any, which can be removed without material injury to the Demised Premises, free of all liens, claims and encumbrances and rights of others or broom- clean, together with all structural changes, alterations, additions, and improvements which may have been made upon the Demised Premises, in good order, condition and repair, reasonable wear and tear excepted, subject, however, to the subsequent provisions of this Section. Any property which pursuant to the provisions of this Section is removable by Tenant on or at the Demised Premises upon the termination of this Lease and is not so removed may, at the option of the Landlord, 16 be deemed abandoned by the Tenant, and either may be retained by the Landlord as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the Landlord may see fit. If the Demised Premises and personal property, if any, be not surrendered at the end of the term as provided in this Section, the Tenant shall make good the Landlord all damages which the Landlord shall suffer by reason thereof, so far as such delay is occasioned by the failure of the Tenant to surrender the Demised Premises as and when herein required. Notwithstanding the aforestated, Tenant agrees that upon vacating the Demised Premises it shall conduct the following schedule of services and maintenance with respect to preparing the Demises Premises for "turnover" back to Landlord: Painting of the Demised Premises; carpet cleaning for Demised Premises; replacement of any interior glass or other fixtures which may have been broken during Tenant's possession; replacement of any light fixtures which may have been broken (including bulbs); replacement of any locks which may have been changed, or in the alternative, Tenant shall provide keys and.lor combinations to said locks; replacement and/or repair of any window treatments, shades and/or blinds which may have become damaged as a result of Tenant's use of same; the interior cleaning of all windows within the Demised Premises, the replacement of any ceiling tiles which may have broken during Tenant's possession of the Demised Premises and the replacement of any furniture, fixtures or equipment (if any) which Landlord has provided for Tenant's use of. 35.1 Holdover: If the Tenant retains possession of the Demised Premises or any part thereof after the termination of this Lease or any extension thereof, by lapse of time or otherwise, the Tenant shall pay the Landlord Rent at two (2) times the rate payable for the month immediately proceeding said holdover. The provisions of this paragraph do not waive the Landlord's rights of re-entry or any other right hereunder. Any retention of the Demised Premises after the termination of this Lease or any extension thereof shall be considered as a month-to- month holdover unless otherwise agreed to in writing by both parties. 36. Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 37. Venue. This Lease Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. LANDLORD AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING 17 THAT THE LANDLORD AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS LEASE AGREEMENT. 38. Intentionally Deleted. 39. Subordination. Tenant agrees that its rights hereunder are subordinate to the lien of any mortgage, ground lease, or any other method of financing or refinancing now or hereafter placed against the Land and/or the Premises and/or any/or all of the Building now built or hereafter to be built on the Land by Landlord and to any and all advances made or to be made hereunder and to the interest thereon and to all renewals, replacements, modifications, consolidations and extension thereof. The Tenant agrees to execute and deliver, at any time and from time to time, upon the request of the Landlord any instrument which may be necessary or appropriate for Landlord's mortgagee. If a Mortgagee of Landlord's shall request reasonable modifications to this Lease, Tenant shall execute, acknowledge, and deliver to the Mortgagee an agreement, in form and substance satisfactory to the Mortgagee, evidencing such modifications, provided that such modifications do not, in Tenant's reasonable discretion, increase Tenant's obligations under this Lease or materially adversely affect (a) the leasehold interest created by this Lease, or (b) tenant's use and occupancy or the Demised Premises. 40. RADON NOTICE. As required by Section 404.056 of Florida Statutes the following warning is given: RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. 41. RIGHT OF FIRST OFFER: Tenant shall have, throughout the term of this Lease, a Right of First Offer to lease additional space on the 2nd Floor, as well as vacant space on the 3rd Floor (Each Floor is comprised of 10,610 sq. ft.). If the Right of First Offer is exercised by Tenant, Tenant acknowledges that all additional square footage rented shall be included as part of the Demised Premises pursuant to this Lease, and that the Base Rent with respect to such additional square footage shall remain at $31.00Irsf. Tenant shall have Forty-Eight (48) hours from the time Landlord makes the offer for the rental of the additional space noted above, in which to respond in writing. Should Tenant reject the offer, or fail to respond within such 48 18 hour period, the Right of First Offer with respect to the additional space described in Landlord's offer shall be terminated and Landlord shall be permitted to market such additional space to third parties. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by the respective duly authorized officers and the respective corporate seals to be affixed this _ day of ~J0'J()ff1Ber, 2007. ..:r1;1 ~ j.)A~ APPROVED AlTO FORM & LANGUAGe &. FOR EXEcunON 19 CORPORATE SEAL (Affix Here) G:\REAL ESTATE -- All Open Files\W\WSGWB\1680 Meridian SALE\Leases\Lease - City of Miami Beach\Revised _ Palm Court\Meridian Center - City of MB.v2 (11-15).doc F:\ECOM$ALL\ASSETH680 Meridian Fire Dept\1680 Meridian Ave Fire Dept Rev RA Dee 29 2006. Lease. doe 20 Exhibit A LEASED PREMISES [TO BE ATTACHED] 21 1110"'0"'."" 1l::J ~o:rdllV)ft9Q)"MMM att't.I;_.~ 'j.Q,-~'O tl:l.U__ -- ___;IU "'''" 009. iR::I't'ON QISY 't'IV ONINNVld N9IS30 ~ll::I3lN1 3l:lfU:)3.1JH~ N'lflal}J3v.i () OJ o a ~ D CJ] F9 ~ffilz bd {)!lli ., {j . . () OJ m. ~g! g . i ~ ~ III! <( \E ~! c:i _ ~~ <( n N I-< 8 ~ u ro l=l~ o v s .~ ;;3> Exhibit 3.4 SALES TAX EXEMPTION NOTICE PI O(VA,kTAlIlNT Of ~EVfNUE .. nsumer's Certificate of Exemption Issued Pursuant to Chapter 212, Florida Statutes OR-14 R.01/02 23-09-329871-54C Certifica1e Number This certifies that CITY OF MIAMI BEACH 1700 CONVENTION CENTER DR MIAMI BEACH FL 33139-1 a 19 is exempt from the payment of Florida sales and use tax on real property rented. transient rental property rented, tangible personal property purchased or rented. or services purchased. JI'- OlP4lthlCf"<T <1f REV[ NUf Important Information for Exempt Organizations DR-14 R.Ol/02 1. You must provide all vendors and suppliers with an exemption certificate before making tax.exempt purchases. See Rule 12A-1.039. Florida Administrative Code (FAC). 2. Your Consumer's Certificate of Exemption is to be used solely by your organization for your organization's customary nonprofit activities. 3. PurChases made by an individual on behalf of the organization are taxable. even if the individual will be reimbursed by the organization. 4. This exemption applfes only to purchases your organization makes, The sale or lease to others by your organization of tangible personal property. sleeping accommodations or other real property is taxable. Your organization must register, and collect and remit sales and use tax on such taxable transactions. Note: Churches are exempt from this requirement except when they are the lessor of real property (Rule 12A-1.070. FAC). 5. It is a criminal offense to fraudulently present this certificate to evade the payment of sales tax. Under no circumstances should this certificate be used for the personal benefit of any individual. Violators will be liable for payment of the sales tax plus a penalty of 200% of the tax, and may be subject to conviction of a third degree felony. Any violation will necessitate the revocation of this certificate. 6. If you have questions regarding your exemption certificate. please contact the Exemption Unit of Central Registration at 850-487-4130. The mailing address is 5050 West Tennessee Street. Tallahassee. FL 32399-0100. 22 Exhibit 8.1.2 LEASED PREMISES APPROVED FLOOR PLANS TO BE SUBMITTED BY LANDLORD UPON RECEIPT OF BUILDING PERMIT 23