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RESOLUTION APPROVING TERMS AND AUTHORIZING EXECUTION BY THE COUNTY MAYOR OR THE COUNTY MAYOR�S DESIGNEE OF LEASE AGREEMENT BETWEEN MIAMI-DADE COUNTY AND AOA FLEXX, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT BETWEEN MIAMI-DADE COUNTY AND THE STATE OF FLORIDA, DEPARTMENT OF HEALTH, MIAMI-DADE COUNTY HEALTH DEPARTMENT, FOR THE PREMISES LOCATED AT 2200 NW 82 AVENUE, BUILDING 5202, DORAL, TO BE UTILIZED BY THE STATE OF FLORIDA DEPARTMENT OF HEALTH, MIAMI-DADE COUNTY HEALTH DEPARTMENT, FOR STORAGE, WITH A TOTAL FISCAL IMPACT TO THE STATE OF FLORIDA DEPARTMENT OF HEALTH, ESTIMATED TO BE $314,431.00 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 IN SUCH LEASE

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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 Agreement between Miami-Dade County (�County�) and AOA Flexx, LLC, a Delaware Limited Liability Company, in substantially the form attached hereto as Exhibit A and incorporated herein by this reference (the �Lease�) and the Assignment and Assumption of Lease Agreement between the County and the State of Florida Department of Health, Miami-Dade County Health Department, in substantially the form attached hereto as Exhibit B and incorporated herein by this reference (the �Assignment�), for the premises to be utilized by the State of Florida Department of Health, Miami-Dade County Health Department, for storage, with a total fiscal impact to the State of Florida Department of Health, estimated to be $314,431, for the initial five-year term of the lease, and the additional five-year renewal option period; authorizes the County Mayor or the County Mayor�s designee to execute the Lease and Assignment 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 in the Lease.

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Date: December 2, 2014

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

From: Carlos A. Gimenez
Mayor

Subject: Lease Agreement and Assignment of Lease Agreement, for Property Located at 2200 NW 82
Avenue, Building 5202, Doral, Florida 33122, to be utilized by the State of Florida Department
of Health, Miami-Dade County Health Department
Lease No. 35-3034-011-0010-L02

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (Board) approve the attached resolution authorizing the execution of a Lease Agreement (Lease) and Assignment of Lease Agreement between the County and AOA Flexx, LLC (Landlord), for the State of Florida Department of Health (State DOH), Miami-Dade County Health Department, located at 2200 NW 82 Avenue, Building 5202, Doral, Florida. More specifically, the resolution does the following:
* Authorizes the leasing of 1,700 square feet of partially air conditioned warehouse space;
* Authorizes a lease term of five years, plus one additional five-year renewal option period; and
* Authorizes an Assignment of Lease to the State DOH in order to transfer all legal and financial responsibilities to the State of Florida.

The County is acting solely as the agent for the State DOH, as allowed by State law and administrative procedure, which permits the State DOH to lease space through the County. No County programs will operate from this leased location and no County funds will be expended for the program. The County will receive a four percent lease management fee as detailed in the fiscal impact section. The Lease, Assignment of Lease Agreement, and the Acknowledgement form signed by the State DOH are attached to this item as Exhibits A, B and C, respectively.

Scope
The property is located in County Commission District 12, which is represented by Commissioner Jose �Pepe� Diaz.

Fiscal Impact/Funding Source
No County funds will be utilized for the payment of this lease.

The total fiscal impact to the State DOH for the first year of the initial lease term will be $27,646.00. This amount is comprised of $20,400.00 in rent (approximately $12.00 per square foot), $4,305.00 for utilities and alarm monitoring, $2,125.00 for janitorial and custodial services, and an $816.00 lease management fee for the County. The total projected fiscal impact for the initial five-year lease term, plus the additional five-year renewal option term inclusive of an annual rental increase of three percent, is estimated to be $314,431.00.

Track Record/Monitoring
The County has no record of negative performance issues with the Landlord. Ronald Abate in the Internal Services Department is the lease monitor.

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

MANAGER'S BACKGROUND
Background
The State DOH has been at this location since 2007. The original lease between the Landlord and the County was approved by the Board through R-1308-07.


Additional lease details are as follows:

COMPANY PRINCIPALS: Michael M. Adler, President
Robert M. Smither, Vice President
Gerardo Gato, Secretary, Treasurer

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 this Lease, and terminating five years thereafter.

RENTAL RATE: The current annual rent in the existing lease is $21,642.36 or ($12.73 per square foot). The annual rent for the first year of the initial five-year term will be $20,400.00 (or $12.00 per square foot). The annual rent for the second through the fifth lease year of the initial lease term and any subsequent renewal option period shall be increased by three percent over the prior year�s rental rate.

LEASE CONDITIONS: The Landlord is responsible for maintenance of the building, common areas, air conditioning, and the structure of the building. The State DOH is responsible for utilities, fire equipment, janitorial, and custodial services, phone, data, and security.

CANCELLATION PROVISION: The County may cancel at any time and for any reason by giving the Landlord 90 days written notice prior to its effective date.

OTHER PROPERTIES
EVALUATED: 2156-2214 NW 82 Avenue, Miami, Florida � $12.00 per square foot on an annual basis for a modified gross lease, plus a prorated share of the building�s operating expenses, which are estimated to be $3.55 per square foot on an annual basis.

10825 NW 29 Street, Miami, Florida � $12.00 per square foot on an annual basis for an industrial gross lease. The estimated cost for operating expenses is approximately $3.60 per square foot on an annual basis.

2375 NW 70 Avenue, Miami, Florida � $12.60 per square foot on an annual basis for an industrial gross lease. The estimated cost for operating expenses is approximately $3.90 per square foot on an annual basis.

Attachment


__________________________
Edward Marquez
Deputy Mayor