NEW BUSINESS  14.

COMMITTEE MEMORANDUM

HISTORY:

On March 10, 2010, the Mayor and City Commission passed Resolution No. 2010-27354, approving a Lease Agreement between the City and MDGLCC Foundation, Inc., d/b/a Miami-Dade Gay & Lesbian Chamber of Commerce (“MDGLCC” or “Tenant”) for approximately 2,543 square feet of City-owned property, located on the first floor of Historic City Hall, 1130 Washington Avenue. The original lease had a term of three (3) years, commencing on April 1, 2010, with two (2) additional three (3) year renewal terms, the final of which is set to expire March 31, 2019.

On March 13, 2013, the Mayor and City Commission adopted Resolution No. 2013-28153, accepting the recommendation of the Finance and Citywide Projects Committee (FCWPC) and approving an amendment to the Lease Agreement (Amendment). At the request of the tenant, the Amendment implemented a reduction in rent. The City Commission found this request reasonable, not only because of persistent maintenance and repair issues at the historic building, but the rent reduction served to offset the Tenant’s costs associated with providing enhanced services. In addition to lowering annual rent from $50,860 to $30,000 per year, the Amendment eliminated MDGLCC’s obligation to pay building operating expenses and building insurance as additional rent and eliminated annual three (3%) percent rent escalations. At the same time, MDGLCC expanded operating hours from five to seven days/week, adding staff members and additional public services.

ANALYSIS:

MDGLCC is a nonprofit, 501(c)(3) organization comprising over 1,200 members and 600 businesses. MDGLCC has requested an early extension of its current lease, generally under the same terms and conditions, including fixed rent without annual increases. MDGLCC’s nonprofit status, and significant contributions to the community, contributed to the City’s renegotiation of lower rent in 2013.  MDGLCC has demonstrated a strong commitment to the building and to the community, and has made improvements to the space that have resulted in an attractive, functional office. The Tenant’s use of the premises as a chamber of commerce and visitor center provides a free public amenity while promoting diversity, tourism, and local commercial interests.  A list of the programming and public services provided to the community is attached hereto as Attachment A (Programming and Public Services).

The proposed Lease Agreement, which contains basic terms and conditions generally consistent with the existing Lease, with an enhanced schedule of public services, is attached hereto as Attachment B (Draft Lease Agreement):

Basic Lease Terms

Tenant:  MDGLCC Foundation, Inc., d/b/a Miami-Dade Gay & Lesbian Chamber of Commerce

Demised Premises:  2,543 SF on north side of 1^st Floor of Historic City Hall, 1130 Washington Avenue

 Use:  Office and retail space, including LGBT visitor center

 Term:  Three (3) years, commencing April 1, 2019 and ending on March 31, 2022

Renewal Options:  Two (2) additional three (3) year renewal terms, subject to the City Manager’s approval

 Rent:  $30,000 per year ($2,500 per month)

Days/Hours:  Monday – Friday 9 AM – 7 PM, Weekends 11 AM – 4 PM

Utilities:  Tenant is solely responsible for all utilities including electric, janitorial, internet, and telephone.

Maintenance and Repairs:  Tenant is responsible for day-to-day maintenance and repairs, whereas the City is responsible for maintenance of the roof, building exterior, all heating/ventilation/air conditioning (HVAC) equipment servicing the Demised Premises, the structural electrical and plumbing (other than plumbing surrounding any sink(s) and/or toilet(s) within the Demised Premises), the common areas, and the chilled water supply system.

CONCLUSION:

The Administration recommends that the Committee recommend in favor of approving the attached Lease Agreement.