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Item Q6 I � 4Q_ COG County of Monroe BOARD OF COUNTY COMMISSIONERS o`� Mayor Sylvia Murphy,District 5 The Florida Keys s •1 Mayor Pro Tern Danny Kolhage,District I A ,_ r Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 County Commission Meeting March 21, 2019 Agenda Item Summary #5364 ADD ON DAY OF MEETING; IF APPROVED WILL BE ADD ON ITEM Q-6 BULK ITEM: Yes DEPARTMENT: Assistant County Administrator Kevin Wilson TIME APPROXIMATE: STAFF CONTACT: Kevin Wilson (305) 292-4441 no AGENDA ITEM WORDING: Approval to forward a lease termination notice for the Pearl House of Worship in Islamorada, negotiate a lease for the Social Services office and congregate meal site at the Tradewinds Shopping Center in Key Largo, acquire required contractor services to prepare the Tradewinds site, and authorization for the Mayor to execute any required documents to accomplish the move from Pearl House of Worship to the Tradewinds site. ITEM BACKGROUND: Staff recognizes the extraordinary nature of the authority requested. The request is made to expedite the relocation of the current Social Services site in Islamorada in response to the Village of Islamorada's request and, perhaps more importantly, because the demolition of the existing meal site building is now on the new Courthouse schedule's critical path. Staff has identified a storefront at the Tradewinds Shopping Center, at 101437 Overseas Highway, Key Largo, that can serve as a temporary Social Services office and congregate meal site while construction proceeds on the new Plantation Key Courthouse site. The rent quoted by the shopping center owner is competitive with local rates for such space (approximately $4,300/month). The proposed draft lease terms include HVAC replacement at the owner's expense and a contribution to the buildout costs. The existing Lease with Keys Churches, LLC, for the location known as the Pearl House of Worship, provides for termination for convenience upon giving six (6) months' notice. There was significant recent negative reaction to the use of that facility for the Social Services office operations by the local neighborhood. A public open house was held at the site on March 5, 2019. Subsequently, a discussion was held at the Village Council meeting on March 14th, at which it was clear, that the Village Council was requesting that the County find an alternate site outside of the residential area, although no formal vote was taken. In addition to the Tradewinds site, several alternate sites have been considered, including a temporary facility using modular units at the PK old helipad,the County's vacant property behind the Walgreens (near the Key Largo Community Park), and another church site in Islamorada. The Tradewinds site has the shortest lead time to complete renovations and is already ADA compliant with required utilities already available. Staff recommends use of the Tradewinds site assuming there are no additional impediments discovered in the negotiation of the lease. The site is zoned Urban Commercial (same as the site behind Walgreens), which permits both institutional and public buildings as of right. The proposed site is contiguous with the Tax Collector's office and near the Monroe County library branch (see site map in backup). The Monroe County Transit operation is a frequent visitor to the shopping center as its clients frequently call for transportation to/from the various businesses in the center. PREVIOUS RELEVANT BOCC ACTION: September 19,2018 BOCC approved a Lease with Keys Churches, LLC, for use of the Pearl House of Worship as a Social Services office and senior congregate meal site. November 20,2018 BOCC approved the First Amendment to the Lease agreeing to pay for the data services at the site as a utility and corrected the Lessor's payment delivery address. CONTRACT/AGREEMENT CHANGES: Yes STAFF RECOMMENDATION: Approval DOCUMENTATION: Tradewinds terms (draft) Tradewinds S.C.Map FINANCIAL IMPACT: Effective Date: TBD Expiration Date: 3 years with cancellation Total Dollar Value of Contract: approximately $155,000 Total Cost to County: full cost Current Year Portion: approximately$41,000 plus buildout costs Budgeted: partially Source of Funds: TBD CPI: N/A Indirect Costs: staff time Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: NO If yes, amount: Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: N/A REVIEWED BY: Sheryl Graham Completed 03/19/2019 2:12 PM Patricia Eables Completed 03/19/2019 2:33 PM Cary Knight Completed 03/19/2019 3:19 PM Kevin Wilson Completed 03/19/2019 3:27 PM Budget and Finance Completed 03/19/2019 3:30 PM Maria Slavik Completed 03/19/2019 3:44 PM Kathy Peters Pending Board of County Commissioners Pending 03/21/2019 9:00 AM 1.74 KI MCQTM REALTY Susana Hazzi Telephone: 561-504-3029 Director of Real Estate Direct Fax: 516-336-2182 Florida Region E-mail: shazzi(alkimcorealtv.com March 15,2019 VIA E-MAIL: Wilson-Kevin@MonroeCounty-FL.Gov Kevin G. Wilson, P.E. Assistant County Administrator Cell 305-797-1547 Office 305-292-4529 RE: Proposed Lease ("Lease") on behalf of KIR KEY LARGO 022, LLC as "Landlord", a subsidiary of Kimco Realty Corporation and TENANT LEGAL NAME as "Tenant", for space ("Premises") at Tradewinds S.C.,Key Largo,FL Dear Kevin: Pursuant to our prior conversation, the following are the Terms and Conditions for a proposed Lease at the above referenced shopping center. Landlord Legal Name: KIR KEY LARGO 022, LLC Landlord Notice Address: c/o IGmco Realty Corporation 3333 New Hyde Park Road New Hyde Park,NY 11042—0020 Phone: 516-869-9000 Tenant Legal Name: TENANT LEGAL NAME—TO BE PROVIDED DBA Name: (CountifOffice-TO BE'PROVIDED) Tenant Notice TO BE PROVIDED Address: ADDRESS/CITY,STATE Phone/E-mail: Plot#: 005 Premises Address: 101491 Overseas Hwy,Key Largo FL 33037 Square Footage: 2,400 Lease Term: Three(3)years Base Rent: First year will be$16.50 per square foot with 3.5%annual increases thereafter Percentage Rent: n/a Fixed CAM: Tenant's monthly"Fixed Common Area Rent"(excluding costs for snow and ice removal, real estate taxes,and management fee(if any)for the first(1st)Lease Year of the Original Term shall be$4.18 psf for 2019 and shall increase 4%during each Lease Year. One Oakwood Boulevard,Suite 70,Hollywood,FL 33020 Real Estate Taxes: Tenant shall pay its pro-rata share of the Real Estate Taxes, estimated at 0.75 per square foot for 2019,subject to year end adjustment. FL Sales Tax: Tenant shall be responsible for paying sales tax on all charges, as required by the State of Florida. Monthly Rent(est.): r3Base Rent $3,300.001 Common Area Maintenance/Insurance i-.----- ---$836.001 Real Estate Taxes__ $150.001 7.2%State Sales Tax ! $308.59 TOTAL MONTHLY RENT $4,594.59 Direct Debit: Waived Additional Costs: Tenant shall be responsible for all utilities, including but not limited to, electric, water and trash removal. Security Deposit: None Guarantor(s): Corporate Use: Iri? o ovine ou oose.n eoun =-e«ia: rviees o ce.aU(]L a .aa n=° #nilfielleaselagrLeement4 Commencement Dates: The Lease Commencement and Tender date will be date Landlord delivers the Premises to Tenant with Landlord's works substantially complete, if applicable. The Rent Commencement Date will be; 1)the earlier of one hundred twenty(120)days from Tender Date; or 2)the date any portion of the Premises opens for business. (Landlord's W®fk:) iLandlord-to provide new-HVAC.) Tenant's Work: i4ATl,,work;;pertorrne by zienant„too Id out ttteir Nremises is at Tenant's cost and) e o:-nse GIs"sue o?,2.me ore ssreview;ano approvai oflenants4pan) a o so- cae"ons' which€Wsha ,v-4. riawn oy. lt 'nl o"Iar© 1 e ,i oui1dil'o oermi is4regur'e'*-'I1[5fTendn ,vorksIShal a ;peormee ey"Ieei -o'COme .•tors ane I] actor ante:wl oca,;ca es< Tenant Allowance: • Landlord shall reimburse Tenant within thirty (30) days of the receipt or occurrence of all of the following items: 1) Rent Commencement; 2) Landlord's receipt of rent, paid receipts, final lien waivers; and 3) Tenant opening for business. Language to be further defined in Lease documents. Broker: It is understood by both Landlord and Tenant that no broker has been involved in this transaction with the exception of Daniel Diaz with CBRE, Inc. and Susana Hazzi with Kimco Realty Corporation representing the interest of the Landlord. Tenant's broker shall be compensated by as determined by a separate agreement. This Letter is to be treated as confidential in nature. Landlord and Tenant covenant to the other that the terms and conditions set forth in this Letter shall not be communicated in any manner to any party other than internally to Lessor,Lessee, and the respective brokers(if any).The foregoing is intended as a summary of the business terms of the Lease Agreement to be entered into between the parties. It is expressly understood that the"Offer to Lease" does not constitute a formal Lease nor obligates either party and is subject to the execution of a mutually acceptable One Oakwood Boulevard,Suite 70,Hollywood.FL 33020 Lease Agreement which will contain substantially more provisions than set forth herein. There is no offer or acceptance on the part of either party, nor has either party has made any reliance upon the terms outlined herein. No liability shall exist on the part of either party until formal documents are executed. The business terms outlined above comprise a non-exclusive, non-binding proposal that is being given to you as well as other prospects for this space and is offered until the earlier of 14 days or until the space is committed to another party. Upon the timely receipt of a signed copy of this letter Landlord will take the space off the market and prepare a Lease Agreement. If multiple offers are received, Landlord reserves the right to select the one which is,in Landlord's sole judgment,in the best interest of the shopping center. This proposal is not intended to create any legal rights or obligations between the parties. Any agreement between •the parties shall be subject to Landlord's REC approval,the approval of Landlord's]V Partner and/or Lender and subject to the full execution of a Lease Agreement. If a Lease Agreement is not mutually negotiated and signed by the Tenant within 45 days from Tenant's receipt of the first draft,then Landlord shall have the right to cease all negotiations and withdraw the offer,placing the space back on the market. If you should have any questions, please contact Susana Hazzi at 561-504-3029. We look forward to your tenancy at Tradewinds S.C.! AGREED AND ACCEPTED: KIR KEY LARGO 022,LLC TENANT LEGAL NAME By: Kimco Realty Corporation Agent for Landlord By: Print Name: By: Susana Hazzi Director of Real Estate Title: Date: One Oakwood Boulevard,Suite 70;Hollywood,FL 33020 MANAGED BY AN AFFILIATE OF N TRADEWI N DS S.C. = K I M C OTM ? 11111.111/0 CDUS HWY. I &SAMSON RD.,KEY LARGO, FL REALTY TENANT SQFT I Available 2,400 .Troup Road -- - 2 Monroe County Tax Collector 2,400 .- 3 Available 1,200 this is the unit 4 Bealls Outlet 3,600 I��"" 6 ANC 1,200 6 Available I,200 S • 7 A-I Urgent Care 1,309 ._ 8 Bealls Outlet 7,262 A , 9 Kmart 108,842 4ibio f --- Publix. -� I»18 19 20 I ' 10 Chan Garden Chinese Restaurant 2,23I Beaus I I I Tradewinds Liquors 2,23I . — a eL _ Outlet // I! I 12 Publix 48,555 4 I' B 10 11 I �/, . I ' I • 13 First State Bank 1,385 12 - �1 � . -_-__ _ _ _, 4 Wear With All 1,378 I z ir do 15 AT&T 1,274 j 16 Available I,?_II2 t °�l I L / \ / 17 Florida Keys Jeweh y I 2.47 I j f I8 The UPS Store I,227 ' = __ _� / - • 19 T&T Nails 1,415 I // — i� 20 Jersey Boardwalk Pizza 3,353 F — III III -' I - 21 Real Estate Sales Force,Inc. 1,415 I K �\\\`\\\\�\\\� / 1.2 Available 1,280 23 H&R Block 1,280 i s",. - •kmart_ FR,//////A - ,11 V 29 Available I,?_97 ■ -�25 Available 756 ' �. 1 26 Available 1,696 ' I 1 , -- ---o i 2,1a2, z� iit\ zs _ 27 Cirque Salon Studios 4,650 I - ----- �ia� 21P I ' • I 111111 I I ' 1.1 II II SO I li J . . T - - . N. Samson Road Non-Controlled ® Availability LEASING REPRESENTATIVE SUSANA HERNANDEZ-HAZZI (954) 956-21 16 i shazzi@kimcorealty.com Disclaimer:This site plan shows the approximate location,square footage,and configuration of the shopping center and adjacent areas,and is only illustrative of the siie and relationship of the stores and common areas generally,all of which are subject to change.The showing of any names of tenants,parking spaces;square footage,curb-cuts or traffic controls shall not be deemed to be a representation or warranty that any tenants will be at the shopping center,the square footage is accurate;or that any parking spaces,curb-cuts or traffic controls do or will continue to exist.Moreover,any demographics set forth in this flyer are for•illustrative purposed only and shall not be deemed a representation by Landlord or their accuracy.Availability of this property for rent is subject to prior rental or withdrawal of the property from the market at any time without notice.