TITLE
RESOLUTION APPROVING TERMS OF AND AUTHORIZING EXECUTION BY THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE OF A LEASE AGREEMENT BETWEEN MIAMI-DADE COUNTY AND PSBP INDUSTRIAL, LLC, A DELAWARE LIMITED LIABILITY COMPANY, FOR PREMISES LOCATED AT 1501-1523 AND 1561-1579 N.W. 79 AVENUE, MIAMI, FLORIDA, TO BE UTILIZED BY MIAMI-DADE POLICE DEPARTMENT AS ADMINISTRATIVE OFFICES, WITH A TOTAL FISCAL IMPACT TO THE COUNTY ESTIMATED TO BE $5,503,891 FOR THE INITIAL FIVE-YEAR TERM OF THE LEASE AND THE ADDITIONAL FIVE-YEAR RENEWAL OPTION PERIOD; AND AUTHORIZING THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE TO EXERCISE ANY AND ALL OTHER RIGHTS CONFERRED THEREIN

BODY
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 of the terms of the Lease Agreement between Miami-Dade County and PSBP Industrial, LLC, a Delaware limited liability company, for premises to be utilized by Miami-Dade Police Department as administrative offices, with a total fiscal impact to Miami-Dade County estimated to be $5,503,891 for the initial five-year term of the Lease Agreement, and the additional five-year renewal option period, 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 the County Mayor�s designee to exercise any and all other rights conferred therein.

HEADER
Date:

To: Honorable Chairwoman Rebeca Sosa
and Members, Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Lease Agreement between Miami-Dade County and PSBP Industrial, LLC, a Delaware Limited Liability Company, for Miami-Dade Police Department Administrative Offices Located at 1501-1523 and 1561-1579 N.W. 79 Avenue, Doral, Florida - Lease No. 35-3034-003-0010-LO1

.. Recommendation
It is recommended that the Board of County Commissioners (Board) approve the attached resolution, which authorizes the execution of a Lease Agreement between Miami-Dade County (Tenant) and PSBP Industrial, LLC (Landlord), a Delaware limited liability company, for the Miami-Dade Police Department (MDPD). More specifically, the resolution does the following:
* Authorizes the leasing of 34,320 square feet of air conditioned office space; and
* Authorizes a lease term of five years, plus one additional five year renewal option period.

Scope
The property is located at 1501-1523 and 1561-1579 NW 79 Avenue, Doral, Florida, which is in Commission District 12 and represented by Commissioner Jose �Pepe� Diaz.

Fiscal Impact/Funding Source
The total fiscal impact for the first year of the initial lease term will be $479,450. This amount is comprised of $403,260 in annual base rent (approximately $11.75 per square foot), $60,060 for electricity, and a $16,130 lease management fee. The total projected fiscal impact for the initial five-year lease term, plus the additional five-year renewal option term is estimated to be $5,503,891. The funding source is the General Fund.

Track Record/Monitor
The County has no record of negative performance issues with the Landlord, PSBP Industrial, LLC. Linda Weber, Real Estate Development Division, Internal Services Department is the lease monitor.

Delegation of Authority
Authorizes the County Mayor or the County Mayor�s designee to execute the attached Lease Agreement, and exercise the renewal and cancellation provisions.

BODY
The MDPD has been at this location since 2006, with the original lease approved by the Board through R-651-06. The current lease expires on June 21, 2013, but contains a �Holdover� provision which allows the County to continue occupying the space on a month-to-month basis until the proposed Lease is approved.

Additional Lease details are as follows:

PRINCIPALS: Joseph D. Russell, Jr. - President, CEO
Edward A. Stokx - Executive Vice President, CFO
John W. Petersen - Executive Vice President, COO
Viola I. Sanchez - Vice President, Southeast

JUSTIFICATION: The MDPD has a need to continue utilizing this facility as administrative offices.

LEASE TERM: Five years, plus one additional five year renewal option period.

EFFECTIVE DATES: Commencing on the first day of the month following the effective date of the resolution approving the Lease Agreement, and terminating five years thereafter.

CURRENT RENTAL RATE: The current base rent is $410,124 dollars, which is equal to $11.95 per square foot on an annual basis. Additionally, there is an annual prorated share of the building�s common area maintenance, which is currently $11,136.

PROPOSED RENTAL RATE: Upon commencement of the new lease, the rent for the first year will be $403,260, which is $11.75 per square foot. The annual base rent for the initial five-year lease term and the additional five-year renewal option period, is structured to increase by three percent annually.

Additionally, the County shall reimburse the Landlord for its pro-rata share of any increase in Common Area Maintenance, such as insurance costs and real estate taxes for the portions that exceed the 2013 base year. The CAM costs are estimated to be $3.83 per square foot on an annual basis.

LEASE CONDITIONS: The Landlord is responsible for the maintenance of the building, common areas, structural elements of the building, plumbing and electrical lines, fixtures, equipment, fire equipment, HVAC system, water and waste disposal services, trash disposal, janitorial and custodial services, and custodial care of the parking lot and landscaping. The County is responsible for the electricity used by the tenant.

CANCELLATION PROVISION: The County may cancel at any time by giving the Landlord 120 days written notice prior to its effective date.

OTHER PROPERTIES
EVALUATED: 8501 N.W. 17 Street - $12.00 per square foot � No tenant improvement funds were available and inadequate parking.

1701-1923 N.W. 82 Avenue - $18.00 per square foot � Available space was insufficient.




__________________________
Genaro �Chip� Iglesias
Deputy Mayor

Honorable Chairwoman Rebeca Sosa
and Members, Board of County Commissioners
Page 2


Honorable Chairwoman Rebeca Sosa
and Members, Board of County Commissioners
Page 2