2000-24217 RESORESOLUTION NO: 2000-24217
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
A SUBLEASE BY AND BETWEEN JACQUES AUGER
DESIGN, INC. AND LEGAL RESEARCH NETWORK, INC.
FOR A PORTION OF THE OFFICE SPACE ON THE 6TH
FLOOR OF HISTORIC CITY HALL, LOCATED AT 1130
WASHINGTON AVENUE, MIAMI BEACH, FLORIDA
WHEREAS, on June 30, 1993, the Mayor and City Commission adopted Resolution 93-
20827 approving a Lease Agreement between the City and Jacques Auger Design Associates, Inc.
(Auger) for the use of approximately 1585 square feet of office space on the sixth floor of Historic
City Hall; and
WHEREAS, Auger has approximately three and one-half years remaining on the Lease with
the City, which expires on August 31, 2003, and the one remaining option to renew is at the City's
sole discretion; and
WHEREAS, Auger has requested that the City grant its consent to a proposed sublease of
its their office space to Legal Research Network, Inc. (LRN), for use by its Regional Director of
Customer Relations; and
WHEREAS, said request for consent has been appropriately and timely filed with, and
reviewed by, the Administration, and the Administration herein recommends that the Mayor and City
Commission approve the request.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission herein
approve a sublease by and between Jacques Auger Design, Inc. and Legal Research Network, Inc.
for a portion of the office space on the 6th floor of Historic City Hall, located at 1130 Washington
Avenue, Miami Beach, Florida.
PASSED AND ADOPTED THIS 20th day of Decemb , 2000.
Attest:
Pam
CITY CLERIC
JMG:CMC:JD:rlr
T:WGENDA\2000\DEC2000\REGULAR \AUGERSUB.RES 11/29/00
MAYOR
APPROVED AS 10
FORM & LANGUAGE
& FOR EXECUTION
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO.
-o
TO: Mayor Neilsen Kasdin and DATE: December 20, 2000
Members of the City Commission
FROM: Jorge M. Gonzalez \ tat -
City
-
City Manager (,/1
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING A SUBLEASE BY AND
BETWEEN JACQUES AUGER DESIGN ASSOCIATES, INC. AND LEGAL
RESEARCH NETWORK, INC. FOR A PORTION OF THE OFFICE SPACE
ON THE 6TH FLOOR OF HISTORIC CITY HALL, LOCATED AT 1130
WASHINGTON AVENUE, MIAMI BEACH, FLORIDA
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
On April 8, 1993, the Mayor and City Commission adopted Resolution 93-20757 approving a Lease
Agreement between the City of Miami Beach (City) and Jaques Auger Design Associates, Inc.
(Auger) for the use of approximately 1585 square feet of office space on the sixth floor of Historic
City Hall. Auger's lease expires on August 31, 2003. Beyond that, there is one remaining option
to renew for five additional years, which is at the City's sole discretion.
Pursuant to Paragraph 13.1 of the Lease Agreement, Auger "does not have the right to assign or
sublet the premises....without the written consent" of the City. Paragraph 13.1 further states that
"...such written consent is not a matter of right and..." the City "... is not obligated to give such
consent".
Auger has requested that the City approve a sublease for approximately 80 square feet of the office
space it currently leases from the City to Legal Research Network, Inc. (LRN) for use by its
Regional Director of Customer Relations to establish business relationships with corporate law
departments and law firms to use LRN's legal research, on-line knowledge management and on-line
legal compliance training products and services. No retail sales will be involved, or client/customer
traffic is anticipated by LRN. Said sublease contemplates a one (1) year initial term, effective
January 1, 2001, and expires on December 31, 2001, with an automatic renewal at the end of the
initial term on a month-to-month basis, to be coterminous with Auger's lease term.
AGENDA ITEM e_76
DATF
The sublease proposed by Auger reflects a rate of $6,000 a year ($500 per month) for the 80 square
feet being subleased. This equates to a rate of approximately $75.00 per square foot. Auger
currently pays the City approximately $14.23 per square foot. Auger and the City have agreed to
split the revenue which Auger will be receiving, over and above the rate it currently pays the City,
on a 50/50 basis. As such the City would be receiving approximately $2,430' in additional rent in
accordance with the aforementioned revenue sharing formula.
It has been the City's position, not to support sublease arrangements in our effort to accommodate
City office expansion needs. However, said request is for such a significantly minor amount of
space that will not address any of the City's independent needs and Auger has agreed to a revenue
sharing arrangement; therefore, a favorable recommendation to approve said sublease is not adverse
to the City's interest.
Auger appropriately submitted the request. The Administration reviewed said request and
recommends approval.
JMG:C14f JD:r1r•64{
Attachments
T:\AGENDA\2000\DEC2000\REGULAR\AUGERSUB.MEM 11/30/00
Auger's sublease rate of $75.00 per square foot (PSF) to LRN, less the $14.23 PSF rate Auger
currently pays to the City, results in a $60.77 PSF difference. The City's proposed fifty percent
(50%) share of said differences equal to $30.38 PSF. Said $30.38 PSF rate times the 80 square
feet being leased to LRN results in a yearly increase to the City of $2430.
CITY OF MIAMI BEACH
City Manager's Office
Interoffice Memorandum
To: Commissioner Jose Smith Date: January 5, 2001
From: Jorge M. Gonzalez
City Manager
Ykt7
Subject: SUBLEASE BY LRN, INC. FROM JACQUES AUGER DESIGN
ASSOCIATES, INC. FOR 80 SQUARE FEET OF THE 6TH FLOOR OF
HISTORIC CITY HALL
The following information is provided in response to the concerns you raised at the
December 20, 2000, City Commission meeting whereat the above referenced sublease was approved
via Resolution No. 2000-24217.
Please be advised that the sublease (attached) was amended to include language indicating the
number of square feet (80) being subleased. The specific use and location are also provided in the
attached exhibit.
By copy of this memo, along with the respective attachments, this information is being forwarded
to the City Clerk for inclusion in the City's official records.
JMG:C1GfC:JI gd'k
attachment
c: Mayor and City Commissioners
Christina M. Cuervo, Assistant City Manager
Jose Damien, Asset Manager
Robert Parcher, City Clerk
F\DDHP\$ALL\ ASSET \OLDCITY\AUGER \SUBLEASE.AMD
JACQUES AUGER DESIGN ASSOCIATES, INC.
HI
MIAMI BEACH, FLORIDA 33139
RENTAL AGREEMENT
ADMIN@AUGERDESIGN.COM
THIS RENTAL AGREEMENT, made this January 1, 2001, by and between Jacques Auger
Design Associates, Inc., hereinafter referred to as ("Landlord") primary tenant of the premises
address known as 1130 Washington Avenue, Sixth Floor, Miami Beach, FL 33139 (the
"Property") and LRN Inc., jointly and separately hereinafter called ("Tenant"). The City of
Miami Beach will be referred to as ("Owner").
1. TERMS: The initial term of this lease shall be 12 months, beginning on the scheduled
date of occupancy which is January 1, 2001 and ending December 31, 2001 at noon. Agreement
shall renew itself from month to month, until terminated by written notice, upon all the terms,
covenants, conditions and provisions herein contained. This rental agreement covers an area
equal to approximately 80 square feet and is subject to the terms of the Landlord's original lease
with the Owner for the entire 6`" floor that will terminate at the end of April, 2003.
2. RENT: Total sum of rent due is $6,000.00 payable in equal monthly installments of
$500.00. Rents are payable in advance on the 1st day of the month at Jacques Auger Design
Associates, Inc., 1130 Washington Avenue, 6th Floor, Miami Beach, FL 33139.
3. SECURITY DEPOSIT: Waived.
4. SUBLEASING: Tenant may not sublease or assign this lease. Any such assignment
shall be void.
5. DAMAGE TO THE PREMISES: The building in which the Demised Premises are
located is insured under the Owner's fire insurance policy. 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 in whole or in part, and such damage is covered by Owner's
insurance, if any, (hereinafter referred to as "such occurrence"), Owner shall, as soon as possible
after such 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 premises shall be rendered
untenantable only in part, Owner 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 premises rendered untenantable; provided however, if the premises are by reason of such
occurrence, rendered more than 50% but less than 100% untenantable, Owner shall promptly
obtain a good faith estimate of the time required to render the premises tenantable If such time
exceeds four (4) months, Landlord shall have the option of canceling this lease, which option shall
be exercised by Landlord in writing within ten (10) days of receipt of notice of same from Owner.
If the premises shall be rendered wholly untenantable by reason of such occurrence, Owner
shall utilize the insurance proceeds to cause such damage to be repaired and the rent meanwhile
shall be abated in whole; provided, however, that Owner shall have the right, to be exercised by
notice in writing delivered to Landlord and subsequently delivered to Tenant within sixty (60) days
from and after said occurrence, to elect not to reconstruct the destroyed 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 premises shall be rendered wholly untenantable, Tenant
shall have the right, to be exercised by notice in writing, delivered to Landlord, within thirty (30)
days from and after said occurrence, to elect to terminate this lease, the rent to be adjusted
accordingly. Notwithstanding any clause contained in this paragraph, if the Owner becomes self
insured or the damage is not covered by the Owner's insurance, then the Owner shall have no
obligation to repair the damage, but the Owner shall advise Landlord who will then advise Tenant in
writing within thrity (30) days of the occurrence giving rise to the damage and of its decision not to
repair, and the Landlord may, at any time thereafter, elect to terminate the lease, and the rent shall
be adjusted accordingly.
6. PROPERTY LOSS: Landlord shall not be liable for the damage to Tenant's property of
any type for any reason or cause whatsoever, except where such is due to the gross negligence of
Landlord.
7. INDEMNIFICATION: Tenant releases Landlord from all liability for and agrees to
indemnify Landlord against all losses incurred by Landlord and/or Tenant as a result of (a)
Tenant's failure to fulfill any condition of this Agreement; (b) any damage or injury happening
in or about the Property to Tenant's invitees or licensees or such person's property.
8. REPAIRS: Tenant acknowledges that it has inspected the Property and accepts the
condition as is. Owner is responsible for all structural repairs. Tenant shall keep the Property
and fixtures and any personal property of Landlord in good condition and repair, and at the
termination of this tenancy shall delivery up the property, fixtures and personal property in as
good order in which they are now, ordinary wear and tear excepted. If at any time Tenant vacates
property and the property is not in good order and repair, the Landlord may bill for the cost of
repairing the property.
9. LOCKS: Tenant is prohibited from adding locks to, changing, or in any way altering
locks installed on the doors of property without the prior permission of the Landlord.
/a/)/� v' /2.2"'60
Date Date
Subleased Space to LRN, Inc. from Jaques Auger Design Associates, Inc. shall consist of
approximately 80 square feet (Area A) of the office space it currently leases from the City. Said
space shall be used by LRN's Regional Director of Customer Relations to establish business
relationships with corporate law departments and law firms to use LRN's legal research. on-line
knowledge management and on-line legal compliance training products and services. No retail
sales will be involved, or client/customer traffic is anticipated by LRN.
Exhibit