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Agenda 06/24/2008 Item #16E 9 Agenda Item No. 16E9 June 24, 2008 Page 1 of 7 EXECUTIVE SUMMARY Recommendation to approve a Lease Agreement with Larus Properties, LLC, in order for the Sherriff's Office to consolidate two existing leases at a first year's rent of $42,837.36. OBJECTIVE: To obtain approval from the Board of County Commissioners (Board) to execute a Lease Agreement with Larus Properties, LLC, for garage space so that two existing leases can be combined to one location. CONSIDERATIONS: The Sheriffs Office is presently leasing two separate locations for classified operations. The total rent and common area maintenance costs for the two leases is $95,729. At this time, the County has an opportunity to combine these leases at one location for a first year's annual cost of $42,837.36, which includes renl and common area mainlenance fees. Combing these leases will save the County $52,891.64 during the first year alone. The proposed space has approximately 3,213 square feet at an annual rent of $33,198.36 for the first year. The rent will be increased by the Consumer Price Index (CPI) figures or by four percent (4%), whichever figure is higher. - In addition to rent, the County will be responsible for Common Area Maintenance charges (CAM), which will be paid monlhly in the amount of $803.25 for the first year term. This amount shall reflect the actual operating costs associated wilh, but not limited to, water and sewer charges, real estate taxes, property insurance, building maintenance and repair, landscaping mainlenance, irrigation system, interior and exterior electrical & lighting system maintenance and repair, air-conditioning system maintenance and repair, parking lot maintenance and repair, fire sprinkler maintenance and repair, and building reserves pertaining to the Demised Premises. The County will only be responsible for all janitorial services and utility charges pertaining to the Demised Premises, which includes, charges for electricity, telephone or other communication service used at the Leased Premises. The County will also be required to maintain, repair and replace the plate glass window at lhe Leased Premises if lhe plate glass window is damaged or broken due 10 County's negligence or aclions. All other charges related to the operation and maintenance of the Demised Premises shall be lhe responsibility of the LESSOR. The attached Lease Agreement has been reviewed by the Office of the County AItorney for legal sufficiency. FISCAL IMPACT: The annual rental fee of $33,198.36 to be paid in equal monthly installments of $2,766.53, the monthly common area maintenance fee of $803.25, as well as all monthly utility charges shall be paid from the General Fund (001). GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. LEGAL CONSIDERATIONS: The aItached License Agreemenl has been reviewed and approved by the Office of the County AItorney for legal sufficiency. - JAB RECOMMENDATION: That the Board approves and authorizes ils Chairman to execute lhe attached Lease Agreement with Larus Properties, LLC. PREPARED BY: Michael Dowling, Sr. Property Management Specialisl, Real Estate Services, Facilities Management Departmenl .-- Page 1 of 1 Agenda Item No. 16E9 June 24, 2008 Page 2 of 7 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16E9 Recommendation to approve a Lease Agreement with Larus Properties, LLC, in order for the Sherriffs Office to consolidate two existing leases at a first years rent of $42,837.36 Meeting Date: 6124/2008 90000 AM Prepared By Michael H. Dowling Property Management Specialist Date Administrative Services Facilities Management 6111120082:27:13 PM Approved By Skip Camp, C.F.M. Facilities Management Director Date Administrative Services Facilities Management 6111/20082:49 PM Approved By Toni A. Mott Real Property Supervisor Date Administrative Services Facilities Management 6112/2008 1 :27 PM Approved By Len Golden Price Administrative Services Administrator Date Administrative Services Administrative Services Admin. 6112/20082:27 PM Approved By Jennifer A. Selpedio Assistant County Attorney Date County Attorney County Attorney Office 6112/20085:09 PM Approved By OMS Coordinator OMS Coordinator Date County Manager's Office Office of Management & Budget 6113/20088:29 AM Approved By Laura Davisson Management & Budget Analyst Date County Manager's Office Office of Management & Budget 6/14f2008 3:39 PM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 6/15120085:31 PM file://C:\AgendaTest\Export\ 11 O-June%2024,%202008\ 16.%20CONSENT%20AGENDA \ 1... 6/18/2008 Agenda Item No. 16E9 June 24, 2008 Page 3 of? Lease # LEASE AGREEMENT THIS LEASE AGREEMENT entered into this _ day of , 2008, between LARDS PROPERTIES, LLC, whosemailingaddressis35lIPloverAvenue.Suite 101, Naples, Florida 34117, hereinafter referred to as "LESSOR," and COLLIER COUNTY, a political subdivision of the State of Florida, whose mailing address is 3301 East Tamiami Trail, Naples, Florida 34112, hereinafter referred as "LESSEE." WITNESSETH In consideration of the mutual covenants contained herein, and other valuable consideration, the parties agree as follows: ARTICLE I. Demised Premises LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR 3,2 I3 square feet of garage space located at 3511 Plover Avenue, Suite 104, 111 and 112, Naples, florida, hereinafter referred to as the "Demised Premises, l! for the sole purpose of operating a maintenance garage facility for the Sheriffs Office. ARTICLE 2. Term of Lease LESSEE shall have and hold the Demised Premises for a five (5) year term commencing September 1,2008 and terminating on August 31,2013. LESSEE is granted the option, provided it is not in default of any of the terms of this Lease, to renew same automatically for an additional three (3) term, under the terms and conditions as provided herein. LESSEE may terminate this Lease following the initial one (1) year tenn at any time by providing LESSOR with sixty (60) days prior written notice to LESSOR at the address set forth in this Lease. Said notice shall become effective upon the date in which the LESSEE either hand-delivers sa{d notice to LESSOR or upon LESSEE'S placement of said notice in an official depository of the United States Post Office, Registered or Certified Mail, postage prepaid. ARTICLE 3. Rent and Other ChafQ.es LESSEE hereby covenants and agrees to pay as base rent for the Demised Premises the sum of Two Thousand Seven Hundred Sixty-six Dollars and Fifty-three Cents ($2,766.53) monthly for the first year of the Lease term. Following the first full year of occupancy (the 'Initial Term'), the annual rent as provided for in this ARTICLE 3, shall be increased for each ensuing year throughout the life of the Lease in the same proportion that the Consumer Price Index for Urban Wage Earners and Clerical Workers-United States City Average, all Item-Series A (1982 - 84 = 100), United States Department of Labor had increased for the preceding year, or by four percent (4%), whichever figure is higher. In the event that the Consumer Price Index cea<:;es to incorporate a significant number of items, or if a substantial change is made in the method of establishing such Consumer Price Index, then the Consumer Price Index shall be adjusted to the figure that would have resulted had no change occurred in the manner of computing such Consumer Price Index. In the event that such Consumer Price Index (or a successor or substitute index) is not available, a reliable goverrunental or other nonpartisan publication, evaluating the information thereto for use in determining the Consumer Price Index, shall be used in lieu of such Consumer Price Index. Agenda Item No. 16E9 June 24, 2008 All rental payments shall be due and payable in advance on the first day of every calendar Page 4 of 7 month during the tenn hereof. If the terms of this Lease shall commence on a day other than the first day of the month, LESSEE shall pay rental equal to one thirtieth (l/30th) of the monthly rental multiplied by the number of rental days of such fractional month. LESSEE shall pay all janitorial services and utility charges pertaining to the Demised Premises, which includes, charges for electricity, telephone Of other communication service used. rendered or supplied thereupon or in connection with the Demised Premises. LESSEE is also required to maintain, repair and replace the plate glass window at the Demised Premises if the plate glass window is damaged or broken due to LESSEE'S negligence or. actions. All other charges related to the operation and maintenance of the Demised Premises shall be the responsibility ofthc LESSOR. In addition to monthly rent, LESSEE shall be responsible for Common Area Maintenance charges, hereinafter referred to as "CAM", to be paid monthly in the amount of Eight Hundred Three Dollars and Twenty-five Cents ($803.25) for the Initial Lease Term. This amount shall reflect the actual operating costs associated with, but not limited to, water and sewer charges, real estate taxes, property insurance, building maintenance and repair, landscaping maintenance and irrigation system, interior and exterior electrical & lighting system maintenance and repair, air- conditioning system maintenance and repair, parking lot maintenance and repair, fire sprinkler maintenance and repair, and building reserves pertaining to the Demised Premises. If LESSOR is required to increase the CAM after the first full year of occupancy, LESSOR shall provide LESSEE with written notice of any increase no later than July 31 throughout the life of the Lease, advising of the new charges for each year of the Lease and for any renewals thereto. Each year, LESSOR shall provide LESSEE with detailed list of all CAM expenses. It is agreed by both parties that any increase in CAM shall reflect those actual costs for operating expenses and real estate taxes associated with the Demised Premises. The CAM increases shall be effective commencing on July I to June 30 each year throughout the life of the Lease. ARTICLE 4. Modi fications to Demised Premises Prior to making any other changes, alterations, additions or improvements to the Demised Premises, LESSEE will provide to LESSOR all proposals and plans for alterations, improvements, changes or additions to the Demised Premises for LESSOR'S written approval, specifying in writing the nature and extent of the desired alteration, improvement, change, or addition, along with the contemplated starting and completion time for such project. LESSOR or its designee will then have thirty (30) days within which to approve or deny in writing said request for changes, improvements, alterations or additions. Said notice period shall commence upon placement of the written notice in an official depository of the United States Post Office, Registered or Certified Mail, Postage Prepaid. LESSOR shall not unreasonably withhold its consent to required or appropriate alterations, improvements, changes or additions proposed by LESSEE. If after sixty (60) days there has been no response from LESSOR or its designee to said proposals or plans, then such silence shall be deemed as an approval to such request of LESSEE. LESSEE covenants and agrees in connection with any maintenance, repair work, erection, construction, improvement, addition or alteration of any authorized modifications, additions or improvements to the Demised Premises, to observe and comply with all then and future applicable laws, ordinances, rules, regulations, and requirements of the United States of America, State of Florida, County of Collier, and any and all governmental agencies. All alterations, improvements, and additions to said Demised Premises installed by LESSEE shall remain the property of LESSEE and prior to the termination of this Lease or any renewal term thereof, or within thirty (30) days thereafter, LESSEE shall promptly remove the additions, improvements, alterations, fixtures and installations which were placed in, on or upon the Demised Premises by LESSEE, and repair any damage occasioned to the Demised Premises by such removal of said alterations, improvements, and additions. If LESSEE does not remove those items designated by LESSOR, LESSOR may complete said removals and repairs at LESSEE'S expense. 2 Agenda Item No. 16E9 Prior to LESSEE'S occupancy of the Demised Premises, LESSOR shall provide and June 24, 2008 install, at LESSOR'S sole cost and expense, a thirteen (13) foot high retractable door at a Page 5 of 7 location to be detemlined by LESSEE. ARTICLE 5. Assignment and Sublettine: LESSEE covenants and agrees not to assign this Lease or to sublet the whole or any part of the Demised Premises, or to pennit any other persons to occupy same without the written consent of LESSOR. Any such assignment or subletting, even with the consent of LESSOR, shall not relieve LESSEE from liability for payment of rent or other sums herein provided or from the obligation to keep and be bound by the terms, conditions and covenants of this Lease. The acceptance of rent from any other person shall not be deemed to be a waiver of any of the provisions of this Lease or to be a consent to the assignment of this Lease or subletting of the Demised Premises. However, LESSEE shall be permitted, without notice to LESSOR, to utilize the Demised Premises for any other Department within the jurisdiction of the LESSEE if the Demised Premises shall no longer be needed by the Department intended for this Lease. ARTICLE 6. Insurance The LESSEE will at all times can)' comprehensive general liability insurance to include bodily injury in an amount not less than the sum of One Million Dollars and 00/1 00 Cents ($1,000,000.00) singlc occurrence. The cost of all such premiwns on all such policies shall be paid and borne by the LESSEE insuring LESSOR and LESSEE against any liability arising out of the use, occupancy or maintenance of the Demised Premises, including loss of income. The insurance policy or policies shall contain provisions prohibiting the modification or cancellation of insurance without at least thirty (30) days prior written notice to LESSOR. LESSEE shall deliver said policies or certificates thereof to LESSOR prior to LESSEE'S occupancy of the Demised Premises, and thereafter, renewal policies or certificates shall be delivered to LESSOR not less than thirty (30) days prior to expiration. The limit of any such insurance shall not limit the liability of LESSEE hereunder. LESSEE may provide this insurance under a blanket policy provided said insurance shall have a LESSOR'S protective liability endorsement attached thereto. ARTICLE 7. MJ!intenance LESSEE shall, at its sole cost and expense, keep the Demised Premises clean at all times. If said Demised Premises are not kept clean in the opinion of LESSOR, LESSEE'S manager will be so advised in writing. If corrective action is not taken within thirty (30) days of receipt of such notice, LESSOR will cause the same to be cleaned and corrected and LESSEE shall assume and pay all necessary cleaning costs and such costs shall constitute additional rent which shall be paid by LESSEE within thirty (30) days of receipt of written notice of costs incurred by LESSOR. LESSEE shall obtain, at its expense, a service contract for maintenance of any heating and air conditioning system which services the Demised Premises and said contract is to conform to the warranty requirements of said system. All damage or injury to the Office Building, Demised Premises or the Common Areas caused by the act or negligence of LESSEE, it agents, employees, licenses, in vi tees or visitors shall be promptly repaired by LESSEE at its sole cost and expense and to the satisfaction of LESSOR. LESSOR may make such repairs which are not promptly made by LESSEE and charge LESSEE for the cost thereof and LESSEE hereby agrees to pay such amounts on demand as Additional Rent. LESSEE shall be responsible for the mowing of the grass and maintenance of any landscaping located in the front of the building along Arnold Avenue. ARTICLE 8. Default bv Lessee Failure of LESSEE to comply with any provision or covenant of this Lease shall constitute a default, and LESSOR may, at its option, terminate this Lease after thirty (30) days written notice to LESSEE, unless the default be cured within the notice period (or such additional time as is reasonably required to correct such default). ARTICLE 9. Default bv Lessor LESSOR shall in no event be charged with default in the performance of any of its obligations hereunder unless and until LESSOR shall have failed to perform such obligations within thirty (30) days (or such additional time as is reasonably required to correct such default) 3 Agenda Item NO.1 dE9 after notice to LESSOR by LESSEE properly specifying wherein LESSOR has failed to perform June 24, 2008 any such obligations. Page 6 of 7 ARTICLE 10. Notices Any notice which LESSOR or LESSEE may be required to give to the other party shall be in writing to the other party at the following addresses: LESSEE: Board of County Commissioners c/o Real Property Management Dept. 3301 Tamiami Trail East Naples, Florida 34112 LESSOR: Larus Properties, LLC 3511 Plover Avenue, Suite 101 Naples, Florida 34117 cc: Office of the County Attorney Sheriffs Office, Administrative Assistant ARTICLE 11. Surrender of Premises LESSEE covenants and agrees to deliver up and surrender to LESSOR possession of the Demised Premises upon expiration of this Lease, or its earlier termination as herein provided, in as good condition and repair as the same shall be at the commencement of the term of this Lease or may have been put by LESSOR or LESSEE during the continuance thereof, ordinary wear and tear and damage by fire or the elements excepted. ARTICLE 12. General Provisions LESSEE expressly agrees for itself, its successor and assigns, to refrain from any use of the Demised Premises which would interfere with or adversely affect the operation or maintenance of LESSOR'S standard operations where other operations share common facilities. LESSEE covenants and agrees not to use, occupy, suffer or permit said Demised Premises or any part thereof to be used or occupied for any purpose contrary to law or the rules Of regulations of any public authority. ART1CLE 13. Claims Arisine from LESSEE'S Use of Premises To the extent permitted by law, LESSEE shall indemnity and bold LESSOR harmless against and from any and all claims arising from LESSEE'S use of the Premises, or from the conduct of its business, or from any activity, or work done, permitted or suffered in or about the Demised Premises, or the Office Building, and LESSEE shall further indemnify and hold LESSOR harmless against and from any and all claims arising from any default in the perfonnance of the Lease resulting from any act or negligence of LESSEE, its officers, agents, employees, guest or invitees. If any action or proceeding is brought against LESSOR by reason of such claim, LESSEE, upon notice from LESSOR, shall defend the same at LESSEE'S expense by counsel reasonably satisfactory to LESSOR. LESSEE shall asswne all risk of damage to property or injury to persons in, upon or about the Demised Premises from any cause other than LESSOR'S negligence or willful misconduct and LESSEE hereby waives all claims in respect thereof against LESSOR. LESSEE shall give prompt notice to LESSOR in case of casualty or accidents in or about the Demised Premises. ARTICLE 14. Radon Gas In compliance with Section 404.056, Florida Statutes, all parties are hereby made aware of the following: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional infommtion regarding radon and radon testing may be obtained from Collier County Public Health Department. 4 ARTICLE 15. Effective Date Agenda Ilem No. 16E9 June 24. 2008 Page 7 of 7 This Lease Agreement shall become effective upon execution by both LESSOR and LESSEE. ARTICLE 16. Governing Law This Lease Agreement shall be governed and construed in accordance with the laws of the State of Florida. IN WITNESS WHEREOF, the parties hereto have hereunder set forth their hands and seals. AS TO THE LESSEE: DATED: ATTEST: DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS, COLLIER COUNTY, FLORIDA BY: Deputy Clerk BY: TOM HENNING, Chairman AS TO THE LESSOR: DATED: G,. <I d \( WITNESSES: LARDS PROPERTIES, LLC C~~.~.~f-{ ~. WITNESS (sit;.rte) BY: ~/ ;WA-Y'- Y . OLNY, Manager (?.../..hZ-ie,rl...l", & M~...l Print Name ~~{'r~51 WITNESS (5' tllr ' [ieJnrP y ~eYY"f'rwd0 Print Name Approved as to form and legal sufficiency: ~('~~~ Jennif A. BeJped Assistant County Attorney 5