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RESOLUTION AUTHORIZING EXECUTION OF A LEASE AGREEMENT AT 5080 BISCAYNE BOULEVARD, MIAMI, WITH T.G.R. MANAGEMENT CORPORATION, A FLORIDA CORPORATION, FOR PREMISES TO BE UTILIZED BY THE DEPARTMENT OF HUMAN SERVICES, ELDERLY SERVICES UNIT AS OFFICE SPACE, WITH A TOTAL FISCAL IMPACT TO MIAMI-DADE COUNTY NOT TO EXCEED $548,978.15 FOR THE INITIAL FIVE-YEAR TERM OF THE LEASE AND THE TWO ADDITIONAL TWO-YEAR RENEWAL OPTIONS; AND AUTHORIZING THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE TO EXERCISE ANY AND ALL OTHER RIGHTS CONFERRED THEREIN

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby approves the Lease Agreement between Miami-Dade County and T.G.R. Management Corp., a Florida Corporation, for premises to be utilized by the Department of Human Services, as office space for their Elderly Services Unit with total fiscal impact to Miami-Dade County not to exceed $548,978.15 for the initial five-year term of the Lease and the two additional two-year renewal options, in substantially the form attached hereto and made a part hereof; authorizes the County Mayor or the County Mayor�s designee to execute same for and on behalf of Miami-Dade County; and authorizes the County Mayor or County Mayor�s designee to exercise any and all other rights conferred therein.

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Date:

To: Honorable Chairman Dennis C. Moss
and Members, Board of County Commissioners

From: George M. Burgess
County Manager


Subject: Lease Agreement with T.G.R. Management Corporation, a Florida Corporation for Premises Located at 5080 Biscayne Boulevard, Miami, for the Department of Human Services Property # 3219-01-00

STAFF RECOMMENDATION
RECOMMENDATION:
It is recommended that the Board approve the attached resolution authorizing execution of a Lease Agreement with T.G.R. Management Corporation, a Florida Corporation, to allow the continued use of the premises by the Department of Human Services. The Lease Agreement has been prepared by General Services Administration at the request of the Department of Human Services.

PROPERTY: 5080 Biscayne Boulevard, Miami

USE: 2,804 square feet of air-conditioned and heated office space including off-street parking in common with other tenants.

COMMISSION DISTRICT: 3

COMMISSION DISTRICTS
IMPACTED: Countywide

OWNER: T.G.R. Management Corporation
a Florida corporation

COMPANY PRINCIPALS: David Shoua - 50%
Alicia Shoua - 50%

OWNER'S TRACK RECORDS: The County has no record of negative performance issues with T.G.R. Management Corporation, a Florida corporation.

JUSTIFICATION: This is not a new lease agreement. The Department of Human Services, Elderly Disability Services Bureau, has been at this location since June 1, 2001 and has a need to continue providing services to the elderly Haitian population and senior citizens in the surrounding communities.

LEASE TERM: Five years with two additional two-year renewal option periods.

EFFECTIVE DATES: Commencing the latter of the effective date of the resolution or June 7, 2010 and terminating June 6, 2015, unless vetoed by the Mayor, and, if vetoed, shall become effective only upon an override of this Board.

RENTAL RATE: The rental rate for the first year of the initial lease term is $43,795.20, which is equal to $15.62 per square foot on an annual basis. The rental rate for the second year of the initial lease term is $45,108.96, which is equal to $16.08 per square foot on an annual basis. The rental rate for the third year of the initial lease term is $46,462.20, which is equal to $16.57 per square foot on an annual basis. The rental rate for the fourth year of the initial lease term is $47,856.00, which is equal to $17.06 per square foot on an annual basis. The rental rate for the fifth year of the initial lease term is $49,291.68, which is equal to $17.57 per square foot on an annual basis. The base rental rate for the renewal option periods shall be adjusted each year in accordance with the Consumer Price Index (CPI) as outlined, in Article XIX, �Rent Adjustment� of the Lease Agreement not to exceed three percent (3%) on an annual basis.

FINANCIAL IMPACT: The total financial impact for the first lease year is estimated to be $54,047.00, which is calculated as follows:


The First Lease Year of the Initial term :
Total Dollars PSF
Annual Base Rent:
Annual Base Rent (Actual) $43,795.20 $15.62

Direct Expense:
Electric $ 8,500.00 $ 3.03
Janitorial & Custodial $ 0 $ 0
(Provided by Staff) _________ _______
Total Base Rent: $52,295.20 $18.65

Indirect Expense:
Lease Management Fee $ 1,751.80
(4%)

Total Cost to County,
First Year: $54,047.00

LEASE CONDITIONS: The County is responsible for electricity and for janitorial and custodial services. Landlord is responsible for the structure of the building, roof, air-conditioning system, water, and waste disposal services and building maintenance repairs.


CANCELLATION PROVISION: The County may cancel at any time by giving 90 days prior written notice.

CURRENT LEASE: The current lease agreement was approved by the Board on March 20, 2001 by Resolution No. R-272-01. The lease is for a three-year term with three additional two-year renewal option periods. The current annual rent is $43,795.20, which is equal to $15.62 per square foot on an annual basis. The County is responsible for electricity and for janitorial and custodial services. Landlord is responsible for the structure of the building, roof, air-conditioning system, water, and waste disposal services and building maintenance repairs. There is a month-to-month holdover clause in the lease agreement.

FUNDING SOURCE: This item has been budgeted in the Department of Human Services operating budget. Index code is HSEHESGFHEE6, Sub-object Code is 25511.

OTHER PROPERTIES
EVALUATED: 4500 Biscayne Blvd. - $24.00 per sq. ft.- Full service lease plus operating expenses. Landlord is responsible for utilities, janitorial and custodial services, building maintenance, common areas, roof, roof leaks and the structure of the building. Tenant is responsible for its proportionate share of the building�s operating expense.

3050 Biscayne Blvd. - $25.00 per sq. ft.- Full service lease plus operating expense. Landlord is responsible for utilities, janitorial and custodial services, building maintenance, common areas, roof, roof leaks and the structure of the building. Tenant is responsible for its proportionate share of the building�s operating expenses.

LEASE MONITOR: Linda Weber, Real Estate Officer

DELEGATED AUTHORITY: Authorizes the County Mayor or the County Mayor�s designee to execute the attached lease agreement, exercise the cancellation provision and the two additional two year renewal option periods.



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Wendi J. Norris
Director
General Services Administration