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RESOLUTION APPROVING TERMS OF AND AUTHORIZING EXECUTION BY THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE OF A LEASE BETWEEN THE COUNTY AND GOLDEN SANDS ALLAPATTAH CORP., A FLORIDA CORPORATION, FOR PREMISES LOCATED AT 1313 N.W. 36 STREET, SECOND FLOOR, MIAMI TO BE UTILIZED BY THE STATE ATTORNEY�S OFFICE AS ADMINISTRATIVE OFFICES AND RECORD STORAGE, WITH TOTAL FISCAL IMPACT TO THE COUNTY NOT TO EXCEED $2,026,253.00 FOR THE TOTAL TERM OF FIVE-YEARS AND ONE THREE-YEAR RENEWAL OPTION PERIOD OF THE LEASE, 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 terms of the Lease between Miami-Dade County and Golden Sands Allapattah Corporation, a Florida corporation, for premises to be utilized by the State Attorney�s Office for administrative offices, and for record storage space, with total fiscal impact to Miami-Dade County not to exceed $2,026,253.00 for the total term of five years, and one three-year renewal option period, of the Lease 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.

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Date: March 4, 2014

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

From: Carlos A. Gimenez
Mayor

Subject: Lease Agreement for Property Located at 1313 N.W. 36 Street, Entire Second Floor,
Miami, Florida 33142 to be utilized by the State Attorney�s Office (SAO)
Lease No. 01-3123-037-5260-LO2

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (Board) approve the execution of a Lease Agreement (Lease) between the County and Golden Sands Allapattah Corp., a Florida Corporation (Landlord), for property located at 1313 NW 36 Street, Second Floor, Miami, Florida that will be used as office space by the State Attorney�s Office (SAO). More specifically, the resolution does the following:
* Authorizes the leasing of 16,500 rentable square feet of air-conditioned office space to be used by the SAO; and
* Authorizes a lease term of five years, plus one additional three year renewal option period.

On July 2, 2013, through Resolution R-513-13, the Board also approved a Lease Agreement with the Landlord for the SAO to occupy the third and sixth floor of this same building. The Lease Agreement approved by the Board is separate and apart from the Lease recommended under this item.

Scope
The property is located in Commission District 3, which is represented by Commissioner Audrey M. Edmonson.

Fiscal Impact/Funding Source
The total fiscal impact for the first year of the initial lease term will be $240,240. This amount is comprised of $231,000 in annual base rent (which is approximately $14 per square foot) and a $9,240 lease management fee. The total projected fiscal impact for the initial five-year lease term, plus the one additional three-year renewal option term is estimated to be $2,026,253. The funding source is the General Fund.

Track Record/Monitor
The County has no record of negative performance issues with the Landlord. 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, and exercise the renewal and the cancellation provisions.

MANAGER'S BACKGROUND
Background
The SAO has been occupying this space since 2006, with the original lease between the Landlord and the County approved by the Board through Resolution R-158-06, the Board approved the lease on behalf of the SAO for a term five years with one three-year renewal option period. The current lease expires on June 11, 2014.

Additional Lease details are as follows:

COMPANY PRINCIPALS: Peter Fedele President 45%
Mary Maguire Vice President 10%
John Fedele Secretary 10%
Ken Fedele Treasurer 10%
Howard Gershuny Director 25%

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

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

RENTAL RATE: The current annual base rent is $243,405, which is $14.75 per square foot on an annual basis.

Upon commencement of the new lease, the annual rent for the first and second year will be reduced to $231,000, or approximately $14.00 per square foot on an annual basis. The annual rent for the third lease year will be $235,620, which is approximately $14.28 per square foot on an annual basis. The annual rent for the fourth lease year will be $240,333, which is approximately $14.57 per square foot on an annual basis. The annual rent for the fifth lease year will be $245,139, which is approximately $14.86 per square foot on an annual basis. The annual rent for the one, three-year renewal option period, will be $250,042 the first renewal option year, which is approximately $15.15 per square foot on an annual basis. The annual rent for the second renewal option year will be $255,043, which is approximately $15.46 per square foot on an annual basis. The annual rent for the third renewal option year will be $260,144, which is approximately $15.77 per square foot on an annual basis. The annual rent was structured to increase by two percent in years three, four and five of the initial lease term as well as each year of the renewal option period.

LEASE CONDITIONS: The Landlord is responsible for the electricity, water and waste disposal services, the maintenance of the building, common areas, structural elements of the building, plumbing and electrical lines, fixtures and equipment, fire equipment, HVAC system, trash disposal, parking lot, landscaping, the building�s taxes and insurance. The County is responsible for the janitorial & custodial services and security.

CANCELLATION PROVISION: The County may cancel the lease, or any portion thereof, by giving the Landlord 60 days written notice prior to its effective date.

OTHER PROPERTIES
EVALUATED: 1251 N.W. 36 Street - $19.00 per square foot, plus operating expenses - No tenant improvement funds available.

2337 N.W. 5 Avenue - $20.00 per square foot - Available space exceeds the program�s requirements.


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__________________________
Edward Marquez
Deputy Mayor