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Item S02BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: July 15, 2015 Department: Cojm� Attomey M-ulk Item: Yes X No M. ir -•0 # AGENDA ITEM WORDING: Approval of Sixth Amendment to the Proplaza LLC, Lease Agreement extending the lease for office space for the County Attorney's Office for three (3) years to expire August 31, 2018. ITEM BACKGROUND: The County has rented space for the County Attorney's Office in the Key West Professional Plaza since 2007 after the previous office at Jackson Square had to be vacated to due to hazardous structural deficiencies in that building. The initial lease was for four years which was followed by four one-year extensions. The proposed Sixth Amendment extends the existing lease for an additional three (3) years however maintains the provision whereby the County may terminate the agreement with 6 months' notice should office space become available in a County building. The lease is also contingent upon a sufficient annual appropriation to cover the expense. In exchange for the 3 year term commitment, the landlord agreed to lower the annual rental adjustment to an annual increase of 3% instead of instead of the greater of 4% increase or CP1 term that existed under the original lease and previous amendments. The current rent is $156,332.70 per year. Under the proposed amendment, the annual rent will increase to $161,022.68 effective 9/1/15; $165,853.36 effective 9/1/16; and $170,828.96 effective 9/1/17. For the three year period, the total rent would be $497,705.00. PREVIOUS RELEVANT BOCC ACTION: 7/18/07 BOCC approved Lease Agreement 4/20/11 BOCC approved Amendment to Lease Agreement (1 year extension) 4/18/12 BOCC approved Second Amendment to Lease Agreement (1 year extension) 5/15/13 BOCC approved Third Amendment to Lease Agreement (I year extension) 6/11/14 BOCC approved Fourth Amendment to Lease Agreement (I year extension) 8/20/14 BOCC approved Fifth Amendment to Lease Agre�ent (reflecting change -in ownership) CONTRACT/AGREEMENT CHANGES: Extends lease for three (3) additional year to 8/31/18 and changes annual rate adjustment to 3% per year vs. 4% or CPI whichever is greater. STAFF RECOMMENDATIONS: Approval TOTAL COST: $497,705.00 INDIRECT COST: none BUDGETED: Yes X No DT"ERENTLAL OF LOCAL PREFERENCE: n/a Q, fl�;11!711 111 11 i REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year r,771 APPROVED BY: County Attorney..�OMB/Purchasing Risk Management I DOCUMENTATION: Included X Not Required Revised 6115 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS Z '' i "'N ............... I IN Cal V-1 0 Uw Contract with: _ Pro plaza LLC Contract # Effective Date: 9/1 /15 Expiration Date: 8/31/18 Contract Purpose/Description: Approval of Sixth Amendment to the Proplaza LLC, Lease Agreement extending the lease for office space for the County Attorney's Office for three (3) years to expire August 31, 2018. Contract Manager: 3470 County Attomey#7 (Name) (Ext.) (Department/Stop #) for BOCC meeting on 7/15/15 Agenda Deadline: 6/30/15 L— --------- Total Dollar Value of Contract: Budgeted? Yes® No F] Grant: $ County Match: $ Estimated Ongoing Costs: $_ (Not included in dollar value above W61,190.1"WIM $ 497,705.00 Current Year Portion: $ Account Codes: 67501-530440- ADDITIONAL COSTS /yr For: CONTRACT REVIEW Changes 161,022,68 J)at,e In Department Head Needed evie r YesE] No2 Risk Management t°-,,Ai�'YesE] NqF-J-� ? O.M.B./Purchasing -q -s- Yeso NoEy County Attorney 6 "D4 S YesE] Nog Comments: OMB Form Revised 2/27/01 MCP #2 etc.) Date Out Shillin er-Bob From: Wilson -Kevin Sent: Monday, June 22, 2015 4:33 PM To: Shillinger-Bob Subject: RE: CAY office lease Good plan Kevin G. Wilson, P.E. Monroe County Public Works & Engineering Division Murray E. Nelson Government & Cultural Center 102050 Overseas Highway, Room 214 Key Largo, FL 33037 (305) 453 8797 phone (Key Largo - direct) (05) 797 1547 cell wilson-kevin@monroecoun,ty-fl.gov From: Shillinger-Bob Sent: Monday, June 22, 2015 4:30 PM To: Wilson -Kevin Subject: CAY office lease Dr. Lockwood (our land lord) was willing to give us a cap of 3% increase per year (vs. CPI or 4% whichever is greater) in exchange for a 3 year deal with the subject to annual appropriation clause and right to terminate if we get govt. owned space. Based on all you've advised in terms of alternate space, 3 years seems to be an appropriate term. Do you disagree? w�ORjDq�' n 9�D CERt�4� CITY, COUNTY & LOCAL GOVERNMENT LAW Bob Shillinger County Attorney Monroe County Attorney's Office 1111 12th Street, Suite 408 Key West, FL 33040 (305) 292-3470 (305) 292-3516 (facsimile) Please note that Florida has a broad public records law and that any communication with the County could be considered a public record. If you do not wish for your email address to become a public record, use the telephone or some other method of conveying your message. SIXTH AMENDMENT AND RENEWAL TO LEASE AGREEMENT THIS SIXTH AMENDMENT (hereafter Amendment) is made and entered into this day of , 2015, by and between Monroe County, a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, FL 33040 (hereinafter "COUNTY" or "LESSEE"), and Proplaza, LLC., a Florida Limited Liability corporation, whose address is 1111 12'h Street, Suite 212, Key West, FL 33040 (hereinafter "OWNER" or "LESSOR"). WHEREAS, on July 18, 2007 the parties entered into a lease for office space situated at 1111 12'' Street, Suite 408, Key West, Florida 33040 expiring August 31, 2011; and WHEREAS, on April 20, 2011 the parties agreed to extend the lease for a one-year term expiring August 31, 2012; and WHEREAS, on April 18, 2012, the parties agreed to extend the lease for a one-year term expiring August 31, 2013; and WHEREAS, on May 15, 2013, the parties agreed to extend the lease for a one-year term expiring August 31, 2014; and WHEREAS, on May 20, 2014, the parties agreed to extend the lease for a one-year term expiring August 31, 2015; and WHEREAS, on August 20, 2014, the lease was amended to reflect the change in the underlying ownership of the leased property from 12t' Street, LTD. to Proplaza, LLC; and WHEREAS, the lease dated July 18, 2007 provides that the lease agreement may be extended in one-year intervals; and WHEREAS, LESSOR has provided LESSEE with an updated mailing address for receipt of rental payments; and WHEREAS, LESSEE has offered, and LESSOR has agreed to, renew the lease for a 3 year term in exchange for setting the annual rental increase at a fixed 3%; now therefore IN CONSIDERATION of the mutual promises and consideration contained herein, the parties agree: Section 1. Paragraph 2 of the original agreement is amended to read: 2. TERM. The term of the Renewal shall be for 3 years commencing on September 1, 2015 and terminating on August 31, 2018, unless terminated earlier under another paragraph of this agreement. Page 1 of 3 6`h Amend to CAY Office Space Lease (kp) BOCC 7/15/15 Section 2. Paragraph 4A. of the original agreement is amended to read: 4. RENT. A. Commencing on September 1, 2015, for use of the premises the LESSEE must pay LESSOR the sum of $161,022.68 per year due in monthly installments payable in arrears upon receipt of a proper invoice pursuant to the Florida Payment Act, Section 218.70, Florida Statutes, et. seq. Rent Payments should be sent to: 18 Allamanda Terrace Key West, Florida 33040-6203 Section 3. Paragraph 4B. of the original agreement is amended to read: 4. RENT. B. On the 1" day of September, 2016 and annually thereafter, there shall be an adjustment to the base rent which shall be derived by taking the preceding year's rent and increasing the same by 3%. Except as set forth in Sections one, two and three of this Sixth Amendment and Lease Renewal Agreement, in all other respects, the original lease agreement dated July 18, 2007 and the additional one-year lease extensions dated April 20, 2011, April 18, 2012, May 15, 2013 and May 28, 2014, as amended August 20, 2014, not inconsistent herewith, shall remain in full force and effect. Section 4. Paragraph 25 of the original agreement amended to read: 25. NOTICES. Notices in this Agreement, unless otherwise specified, must be sent by certified mail to the following: LESSOR: Dr. Robin Lockwood dba Proplaza, LLC 18 Allamanda Terrace Key West, Fl. 33040-6203 COUNTY/LESSEE: County Attorney PO Box 1026 Key West, Fl. 33040 And County Administrator 1100 Simonton Street Key West, Fl. 33040 Page 2 of 3 6`h Amend to CAY Office Space Lease (kp) BOCC 7/15/15 IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized representative. By Deputy Clerk Date (CO ORATE SEAL) ATTEST: By Witness Date By Mayor Danny L. Kolhage PROPLAZA LLC. Florida Limited Liability Company By Dr. Robin Lockwood, Manager Page 3 of 3 6`h Amend to CAY Office Space Lease (kp) BOCC 7/15/15 Additional Back- BOCC 8/20/14 Fifth Amendment to Lease Agreement • Change in ownership — from 12th Street LTD to Proplaza LLC BOCC 6/11/14 Fourth Amendment to Lease Agreement • One (1) year extension expiring 8/31/2015 BOCC 5/15/2013 Third Amendment to Lease Agreement • One (1) year extension expiring 8/31/2014 BOCC 4/18/2012 Second Amendment to Lease Agreement • One (1) year extension expiring 8/31/2013 BOCC 4/20/2011 First Amendment to Lease Agreement • One (1) year extension expiring 8/31/2012 BOCC 7/18/2007 Lease Agreement — • Three (3) year term - expiring 8/31/2011 WIWI I I I ' O. THIS FIFTH AMENDMENT (hereafter Amendment) is made and entered into this 201h day of August, 2014, by and between Monroe County, a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, FL 33040 (hereinafter "COUNTY" or "LESSEE"), and Proplaza, LLC., a Florida Limited Liability corporation, whose address is II11 121h Street, Suite 212, Key West, FL 33040 (hereinafter "OWNER" or "LESSOR"). WHEREAS, on the 181h day of July 2007, the COUNTY entered in to a 4 year lease (hereinafter Original Lease) with a termination date of August 31", 2011 with the LESSOR's predecessor in interest; and WHEREAS, the County and the LESSOR's predecessor in interest entered into one year lease extensions dated April 20, 2011, April 18, 2012, May 15, 2013 and June 11, 2014; and WHEREAS, LESSOR's predecessor in interest transferred all rights, title, interest and obligations to the leasehold by means of a Warranty Deed dated July Is', 2014 attached hereto as Exhibit A. and made a part hereof; and WHEREAS, LESSOR's predecessor in interest operated under the business name of 12th Street, LTD., and LESSOR will be operating under the business name of Proplaza LLC.; and WHEREAS, the parties desire to update the lease to reflect the change in the underlying ownership of the leased property, now, therefore, IN CONSIDERATION of the premises and of the mutual covenants and agreements herein contained, and other valuable considerations, the parties agree as follows: SECTION 1. Article 4. RENT, subparagraph A. of the original lease is amended to read as follows: A. For the use of the premises, the LESSEE must pay the LESSOR the sum of $150,319.92 per year, due in monthly installments payable in arrears upon receipt of a proper invoice pursuant to the Florida Prompt Act, Section 218.70, Florida Statutes, et seq. Rent Payments should be sent to: Proplaza, LLC. 1111 121h Street, Suite 212 Key West, Fl. 33040 SECTION 2. Article 25. NOTICES. is amended to read as follows: Notices in this Agreement, unless otherwise specified, must be sent by certified mail to the following: LESSOR: Proplaza, LLC 1111 12th Street, Suite 212 Key West, Fl. 33040 COUNTY/LESSEE: County Attorney PO Box 1026 Key West, Fl. 33040 County Administrator 1100 Simonton Street Key West, Fl. 33040 SECTION 3. In all other respects, the original agreement dated July 18, 2007 and the lease extensions dated April 20, 2011, April 18, 2012, May 15, 2013 and May 28, 2014 not inconsistent herewith, shall remain in full force and effect. IN WITNESS WHEREOF each party hereto has caused this agreement to be executed in ,ate by its duly authorized representative. HEAVILIN, CLERK By Deputy Clerk Date _ j 1 # 9014 �' 'r f 1i By U L& ' Wi ss Date 4 24-A N BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA & WA " TIK�v�ia"Murphy PROPLAZA LLC. Florida Limited Liability Company By Dr. Robin Lockwood, Manager DocN 1990501 07/17/2024 2:08PH Filed 8 Recorded in Official Records of MONROE COUNTY AMY HEAVILIN 07/17/2014 2:08PM DEED DOC STAMP CL: MT DocN 1990501 BkN 2694 PgN 1228 tSeeoeAbw&7hkuwFerR0Nw wDieei. Wwm* � dq Of Jab►, 2014 bawom 126 a Rhm tridttaa is PA: Eft 414 % Khok FL 33144 motor, md a ,whaee ponaffined6mbill.1 1216 71% Weal, FL tl $5,3a5.80 oemd hmh do Um *SM aand ORMW ftwkda dl do pWw to We hOwnd and the bk% hW I wd Odom of and do nd oa t wet Ie w=d ) WhOM011k *d mid VOW. tw ad In comMenalm or the tram of TM AND NOJ100 DOUAN (F10.00) and adwr gooduadvakable 1 111 1111110w to whis 111tia, in hod puld has tad to die Sad Bra0K and b9 ad udgm , the is dt m%6 bft and baing in Umm C=*, Floran 1.1i 7M:1.4, &W&dkM r+eaMedw� oaaaentanb of nowd and !tees for the year 2014 tN a"e9uest 7ur4 wts or dft smvb or abaftet unduaden w d is bwed solely on ft* PrawUNd by d&w ort6o pwdu or bb or her newL T4VWhw wig all do esa.a omh bustiftwumb ®d qWurNmawn dweW belonging or in To ffiffe and to HoK So son in in ample ftwa. And the yar I - buft CWV*Wmta whh 8dd a I I 1 69 die Wadw is kwhUy salad of lewd io The that the Sager ha Food rWt tmd to all eat coney sad hA- that die go oil a i hereby fidly ,nerand the dde to add lmd ad will doW die acme lob& the kwfkd dame of di pmm whamooriec, and that =W land is ft of all to Deeembw3l, 201& aat tad wd the day =d year tint EXHIBIT DoeN 1990501 BkN 2694 PgN 1229 Signed, sealed and delivered in our presence: State of Florida County ofMearae f7tC t,. ,!- 3cw4-1 The foregoing instrument was acknowledged before me this IC day of July, 2014 by Roberto Sanchez, as General Partner of 12th Street, Ltd., ad Florida limited Partnership he [] is personally (mown to me or M has produced a driver's license as identification. [Notary Seal] .g"""'•• PHYLLIS ANN MARCIAL Notary Public • State of Florida • = My Comm. Expires Feb 3. 2017 ' Commission #� EE 842744 •' ��• Bonded Through National Notary Assn. Gz:l Notary Public Printed Name: -9, w' S Lis ( Una rC rrat. 1 My Commission Expires: Wmnmuy Deed - Pap 2 DoabteInmee 01 BkN 26940gpq# 1230 EDIT "A" LEGAL DESCRIPTION Unit 407, Key West Professional Plaza, a Condominium, according to the Declaration of Condominium thereof and exhibits attached thereto as recorded in Official Records Book 921, at Page 654, of the Public Records of Monroe County, Florida, and any amendments thereto, together with all appurtenances thereto, including and undivided interest in the common elements thereto. MONROE COUNTY OFFICIAL RECORDS FOURTH AMENDMENT TO LEASE AGREEMENT THIS FOURTH AMENDMENT TO LEASE AGREEMENT is made and entered into this day of 2014, by 12' STREET, LTD. (LESSOR), a profit corporation incorporated in the State of Florida, whose address is 1680 Michigan Avenue, Suite 914, Miami, FL 33139, and the BOARD OF COUNTY COMMISSIONERS OF MON-ROE COUNTY, FLORIDA, a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, FL 33040 ("COUNTY" or "LESSEE"). WHEREAS, on July 18, 2007 the parties entered into a lease for office space situated at 1111 12a' Street, Suite 408, Key West, Florida 33040 expiring August 31, 2011; and WHEREAS, on April 20, 2011, the parties agreed to extend the lease for a one-year term expiring August 31, 2012; and WHEREAS, on April 18, 2012, the parties agreed to extend the lease for a one-year terra expiring August 31, 2013; and WHEREAS, on May 15, 2013, the parties agreed to extend the lease for a one-year term expiring August 31, 2014; and WHEREAS, the lease dated July 18, 2007 provides that it may be extended in one-year intervals; now therefore IN CONSIDERATION of the mutual promises and consideration contained herein, the parties agree: 1. The lease agreement entered into July 18, 2007, is hereby extended for an additional one- year term to expire August 31, 2015. 2. All other terms of the lease agreement entered into July 18, 2007, not inconsistent herewith, shall remain in full force and effect. IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly authorized representative. WITNESS: (SEAL) ATTEST: AMY HEAVILIN, CLERK By: Deputy Clerk 12rH ftEET/LTD, BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By: MAYOR MONR=3HILU RNEY �ROBF-W., 3R COL*M TT =orag= From: Wilson -Kevin Sent: Friday, April 12, 2013 5:20 PM To: Ferda-Elaine Cc: Shillinger-Bob; Barnett -Jerry; Smith -Shane Subject: RE: County Attorney Office Lease You won't be moving in FY2014. Kevin G. Wilson, P.E. Monroe County Public Works & Engineering Division Murray E. Nelson Government & Cultural Center 102050 Overseas Highway, Room 214 Key Largo, FL 33037 (305) 292-4560 (Key West) (305) 453-8797 phone (Key Largo - direct) (305) 797-1547 cell (305) 453-8798 fax -Key Largo (305) 295-4321 fax -Key West wilson-kevinO-)monroecountv-fl.aov From: Smith -Shane Sent: Friday, April 12, 2013 4:42 PM To: Ferda-Elaine Cc: Shillinger-Bob; Barnett -Jerry; Wilson -Kevin Subject: Re: County Attorney office Lease Elaine The Consultant is currently working on a draft to be submitted in June. The draft submittal will include recommendations to consolidate/ relocate County services into County owned facilities, and provide approximate information for the County Administrator to consider. At this point in the project, the Consultant has completed the Facilities Condition Assessments, and is working to combine the information gathered from the Space Planning Surveys from each division/ department, I would be happy to meet with you next week to discuss further if needed. Thank you. Shane S. Smith Sr. Project Manager Project Management Dept. Monroe County Florida 1100 Simonton St. Suite #2-216 Key West, Florida 33040 0- 305-292-4527 C- 305-395-2059 F- 305-295-4321 On Apr 12, 2013, at 4:20 PM, "Ferda-Elaine" <Ferda-Elainet@monroecounty-fl.gov> wrote: I neglected to tell you in the last email that our lease needs to go before the BOCC in May so if you could get this information to me as soon as possible so we can be prepared for any questions asked by the commissioners. Thanks Shane and have wonderful weekend. From: Ferda-Elaine Sent: Friday, April 12, 2013 4:06 PM To: Smith -Shane Cc: Shillinger-Bob Subject: County Attorney office Lease Good afternoon Shane, Our County Attorney Office lease is due to go befo ee n renew ng • ease.• EET,M HIS TE41D AWNDWM TO LEASE AGREF30M is made and entered into this day of AO 2013, by 12TH ,, . (LESSOR), a profit corporation incorporated in the S33tat6e ff —Flo—rid—a,—w—h-jose address is 1680 Michigan Avenue, Suite 914, Miami, FL 33139, and the BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, a political subdivision of the State of ♦ ! { , �' T rim WHEREAS, on April 20, 2011, the parties agreed to extend the lease for a one-year term expiring August and WHEREAS, the lease dated July 18, 2007 provides that it may he extended mi one-year intervals; now therefore VIREREAS, the lease dated April 4, 2012, the parties a --jux;_4 &nyt fftft�-q �er IN CONSIDERATIONof r mutual promises :'1r consideration contained herein, the tall ies The lease agreement entered into july 18, 2007, is hereby extended for an additional one. year term to expire August 31, 2014. herewith, 2. All other terms of th * e lease agreement entered into July 18, 2007, not inconsistent shallremain 1:full force• i effect. / 271W f AMY HEAVnjN9 CLERK By:--C�' V Deputy Clerk Florida,THIS SEPOND AMENDMENT TO LEASE AGREEMENT is made and entered into this day of Ag� 4 . 2012, by 12�m STREET, LTD. (LESSOR), a profit corporation whose address is 1680 Michigan Avenue, Suite 914, Miami, FL 33139, and the BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, a political 1. 1 f _'# of the - of Florida, r.'.. - address 1. f - 1 1'. Simonton Street 33040 M' , , V41EREAS, on April 20, 2011, the parties agreed to extend the lease for a one-year term expiring August 31, 2012; and 44HEREAS, the lease dated July 18, 2007 provides that it may be extended in one-year intervals; now therefore agree: IN CONSIDERATION of the mutual promises and consideration contained herein, the parties I The lease agreement entered into July 18, 2007, is hereby extended for an additional one - term to expirer 2. All other , theleaseagreement entered gib•intoJuly 18, 2007, not 1 '. :.,.:1 herewith, shallremain ! ! : DANNY L. KOLHAGE, / Byi/ _/ M BOARD OF COUNTY/ r 1F.k[! OF MONROEFLORIDA' ` R 1000 ....... MAYOR LeaseThis Amendment to Agreement s made and entered K . 2011, by 12TH STREET, r • corporation Florldar whose address L Of Rd.,, Suite•38, Miami,, FL 33126, 1 , ti p' i «i =r • ' r i i COUNTY, subdivision of the Stateof Florida,whose.• ez tt Simontony West, FL 33040, •[4 or Street,WHEREAS, the parties entered Into a lease fbr office space situated at 111, 12th Suite.: t o r 1 t and WHEREAS, the COUNTY continues to requires 01VIC0 Office; Attorneys • WHEREAS, the dated July 113, 2007,PrOlAdes thatIntervals;now therelbre 11; CONSIDERATION OF the mutual promises and consideration contained herein, the parties agree: 1. The lease agreement entered into July 18, 2007, extended fbr r A1 other terms of the lease• a i- . 3ulv 18, ut t IN WITNESS WHEREOF, each party has caused this Agreement duly authorized IH— - WARD OF COUNW COMMISSIONERS ;7 FLORIDA aerk BY .. • i 1 • LIi i. �* VI 4 -1 A A J-= F-I 1)--11;3i:ofF(9J.I4;:467_1..:F?r1: -10 t4i,4k 14 *-'1 v� 4 :4,AL I h_� v I a. UNW& In the everd m5tWoPerstion of low or by bona fift LESSOR shall be rel from all llab i We to LESSEE In resp a to an such ob 856 MY be aNgned by the LESSOR b ll MUS a letter stating that the lease k f.lIL'i..7;�'li�'J471�1;1 T.1"Le.- ,i _ ll'l: 5 Vil L� A f- 'W-.PWW4P' + iq`44,tj i i I r• i M l r: II i 1'.. a r i i• a....r i .w _ - r I t • >A r i ti 11 lit w. 1,,, I M: 1 1 t ! t f r I it 10 .0%