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RESOLUTION APPROVING, PURSUANT TO SECTION 125.031, FLORIDA STATUTES, THE TERMS OF AND AUTHORIZING EXECUTION BY THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE OF A LEASE AGREEMENT (�LEASE�) BETWEEN BIRDGATE INC., A FLORIDA CORPORATION, AS LANDLORD, AND MIAMI-DADE COUNTY, AS TENANT, FOR PREMISES LOCATED AT 12781 SW 42 ST, UNITS E-F, MIAMI, FL, TO BE UTILIZED BY THE COUNTY AS A DISTRICT OFFICE FOR COUNTY COMMISSION DISTRICT 11, FOR A THREE-YEAR TERM, WITH TWO, THREE-YEAR OPTIONS TO RENEW, HAVING AN ESTIMATED FISCAL IMPACT TO THE COUNTY OF $1,002,225.90 FOR THE NINE YEAR PERIOD, INCLUDING BASE RENT, COMMON AREA MAINTENANCE, LEASE MANAGEMENT FEES, UTILITIES, OPERATING EXPENSES, AND TENANT IMPROVEMENTS; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO TAKE ALL ACTIONS NECESSARY TO EXERCISE ALL RIGHTS CONFERRED IN THE LEASE AGREEMENT INCLUDING THE 90-DAY RIGHT OF TERMINATION, AND TO TAKE ALL ACTIONS NECESSARY TO EFFECTUATE SAME; WAIVING RESOLUTION NO. R-130-06 AND PROVISION OF IMPLEMENTING ORDER 8-4
REQUIRING EXECUTED LEASE AGREEMENT TO BE PRESENTED TO THE BOARD

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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; and

WHEREAS, Birdgate Inc., a Florida corporation, (�Landlord�) owns the premises located at 12781 SW 42 ST, Suites E-F, Miami, Florida (�Premises�); and

WHEREAS, the County is authorized and has the right, pursuant to section 125.031, Florida Statutes, to enter into leases for properties needed for a public purpose; and

WHEREAS, the County desires to lease the Premises, consisting of approximately 1,963 rentable square feet, plus use of the common areas, to be utilized by the County as a district office for County Commission District 11; and

WHEREAS, although Landlord has reviewed the Lease, agreed to same, and provided written approval to the Internal Services Department, the attached Lease has not yet been formally executed by the Landlord due to time sensitivity,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. The foregoing recitals are incorporated into this resolution and are approved.

Section 2. This Board waives Resolution No. 130-06 and the provisions of Implementing Order 8-4 requiring that leases presented to the Board be executed by the other party.

Section 3. This Board hereby approves, pursuant to section 125.031, Florida Statutes, the Lease Agreement between the County and the Landlord, in substantially the form attached hereto as Exhibit �1� (�Lease Agreement�), for the Premises, to be utilized as a district office for County Commission District 11, with an estimated cumulative cost for the initial three-year term of $380,043.17 and should the two, three-year options to renew be exercised, a total fiscal impact for the entire nine period of $1,002,225.90, including base rent, common area maintenance, lease management fees, operating expenses (inclusive of HVAC maintenance, janitorial and custodial services, pest control), utilities (inclusive of water, sewer, electricity, internet, cable, and telephones), and tenant improvements.

Section 4. This Board authorizes the County Mayor or County Mayor�s designee to execute the Lease Agreement for and on behalf of the County, to exercise all rights conferred therein including but not limited to the right of termination upon 90 days� written notice, and to take all actions necessary to effectuate same.

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Date: To: Honorable Chairman Oliver G. Gilbert, III
and Members, Board of County Commissioners From: Daniella Levine Cava
Mayor
Subject: Lease Agreement between Birdgate, Inc.,
and Miami-Dade County, for Property
Located at 12781 SW 42 ST, Suites E-F,
Miami, Florida 33175
Lease No. 30-4914-001-3540-L01

STAFF RECOMMENDATION
Summary
This item is for the approval of a Lease Agreement (�Lease�), between Birdgate, Inc. (�Landlord�), a Florida Corporation, and Miami-Dade County (�County�), as tenant, for the lease of approximately 1,963 square feet of office space, together with the right to two reserved parking spaces, along with the non-exclusive right to use the common areas of the building and property with other tenants. The office space will be utilized by the County as a district office for the Commissioner of District 11. The proposed Lease has a three-year term, with two additional three-year options to renew plus a 30-day rent free period after Landlord delivers possession of 12781 SW 42 ST, Suites E-F, Miami, Florida 33175 to the County. The estimated cumulative fiscal impact to the County for the first year of the lease is $195,990.55 which includes Tenant improvements estimated at $107,965. During the initial three-year term of the Lease, the County is responsible for approximately $380,043.17 (including base rent, common area maintenance, lease management fees, and Tenant Improvements) inclusive of approximately $42,425.69 for internet, telephone, cable, electricity, water and sewer, janitorial and custodial, pest control and routine HVAC Unit(s) maintenance. The estimated cumulative fiscal impact to the County for the initial three-year term of the Lease is $380,043.17.

Recommendation
It is recommended that the Board of County Commissioners (�Board�) approve the terms of and authorize the execution of the Lease between the County and the Landlord, after execution by the Landlord, for the use of property located at 12781 SW 42 ST, Suites E-F, Miami, Florida 33175 (�Premises�), to be utilized as a district office. More specifically, the resolution does the following:

* Approves the lease of 1,963 square feet of air-conditioned office space, plus two reserved outdoor parking spaces in front of the Premises; and

* Authorizes a lease term of three-years, with two, three-year options to renew.

The Lease becomes effective on the first day of the next month following the effective date of the resolution approving the Lease.

Scope
The Premises is located in Commission District 11, which is represented by Commissioner Roberto J. Gonzalez. Written notice of the Lease was provided to the Commissioner.

Fiscal Impact/Funding Source
The fiscal impact to the County for the first year of the lease term is estimated to be $195,990.55 which is comprised of: (i) $53,001 (approximately $27 per square foot) in annual base rent; (ii) $2,650.05 in lease management fees equal to five percent of the annual base rent to be paid to the Internal Services Department (ISD) for administration of the lease; (iii) $18,648.50 for its estimated pro-rata share of common area maintenance reimbursable to the Landlord; (iv) other routine maintenance costs including HVAC Unit(s) maintenance, janitorial and custodial services, separated metered electricity, pest control, internet, cable, phones, and data, the cost of which is estimated at $13,726 based upon a flat rate of general consumption; and (v) an estimated $107,965 to be utilized for Tenant Improvements of the Premises. As part of the negotiation for the lease, the Landlord agreed to a 30-day period after possession is delivered to the County prior to the commencement of rent. The total projected fiscal impact to the County for the initial three-year term of the Lease is estimated to be $380,043.17, (including base rent, common area maintenance, lease management fees, Tenant Improvements, internet, telephone, cable, electricity, water and sewer, janitorial and custodial, pest control, and routine HVAC Unit(s) maintenance).

The Lease includes an annual minimum rental increase of three percent beginning the second year, and each subsequent year thereafter. Should the County choose to exercise the two, three-year options to renew, the estimated fiscal impact for nine-years of possession of the Premises (to include base rent, common area maintenance, lease management fees, Tenant Improvements, internet, telephone, cable, electricity, water and sewer, janitorial and custodial, pest control, and routine HVAC Unit(s) maintenance) is estimated to be $1,002,225.90. The funding source for $902,225.90 is �G1001 (Chartfield CC1110202) NO GRANT� classification. The funding source for the remaining $100,000 is �CO003 (Chartfield NDCP090200) NO GRANT� classification.
ISD conducted an in-house survey of the comparable rental values in the immediate area to determine the market rental value of similar properties. The findings are provided below.
* 12803 SW 42 ST, Miami, Florida - $31 per square foot on an annual basis. Tenant is responsible for paying its proportionate share of utilities, common area expenses, and certain services.

* 13353 SW 42 ST, Miami, Florida - $33 per square foot on an annual basis. Tenant is responsible for paying its proportionate share of utilities, common area expenses, and certain services.

* 3855 SW 137 Ave, Miami, Florida - $34 per square foot on an annual basis. Tenant is responsible for paying its proportionate share of utilities, common area expenses, and certain services.
Track Record/Monitor

Alan G. Quiroz of ISD will be responsible for the monitoring of the Lease.

As required by Section 2-8.6.5 of the Miami-Dade County Code, the following is the ownership structure of Birdgate, Inc.:

* Birdgate, Inc. is, a wholly-owned FloridaCorporation.

* Representatives of Birdgate, Inc. are the following:

* Erick Ciocca, Manager;

* Romano Ciocca, Director/President

* Elio Ciocca, Director/Secretary/Treasurer

Delegation of Authority
This item authorizes the County Mayor or the County Mayor�s designee to execute the Lease after execution by the Landlord, to take all actions necessary to effectuate the Lease, and to exercise all other rights conferred therein, including but not limited to, the right to exercise the optional renewal terms set forth in the Lease and the right to terminate the Lease upon 90 days� written notice.

Background
The County is entering into the Lease for the purpose of providing a district office for the District 11 Commissioner, who began his term in November 2022. The district office is necessary in order to serve and respond to the needs of the constituents and the various communities within the district. The fiscal impact of the previous District 11 office, which is currently being occupied by the Commissioner is yet to be determined. Once the Commissioner is out of the previous District 11 office, the County�s Community Action & Human Services Department (CASHD) plans to assume financial responsibility of the previous lease. The Real Estate Development Division of ISD negotiated and drafted the Lease for the Premises on behalf of the District Commissioner�s Office.

Pursuant to the terms and conditions of the Lease, the County will have the following rights after 90-days�:
* Early termination of the Lease upon 90 days� written notice to the Landlord should Commissioner Roberto J. Gonzalez no longer serve as Commissioner for District 11; and

* The right to terminate the Lease if the Landlord does not deliver possession of the Premises to the Tenant within 30 days of the Effective Date of the Lease.

The County�s monthly rental payment obligation shall not commence until 30 days after the first in time event occurs: 1) the Landlord delivers possession of the Premises to Tenant; 2) or the date Tenant opens the Premises for its intended use. The County may begin Tenant Improvements to the Premises on the date Landlord transfers possession to the County.

Although the Landlord has reviewed the Lease and has provided written approval of same, due to time sensitivity it has not yet been formally executed by the Landlord, and therefore, a waiver of Implementing Order 8-4 and Resolution No. 130-06, requiring that the Lease be executed by the Landlord prior to presentation to this Board, is being sought.

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Edward Marquez
Chief Financial Officer