PLACEMENT: Consent
TITLE:
title
APPROVAL OF A SECOND AMENDMENT TO LEASE AGREEMENT WITH HOBE SOUND-1 LLC, FOR THE CONTINUED USE OF THE CONSOLIDATED SATELLITE OFFICE SPACE CURRENTLY USED BY THE CONSTITUTIONAL OFFICES IN HOBE SOUND
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EXECUTIVE SUMMARY:
executive summary
Approval of the Second Amendment to the Lease Agreement with Hobe Sound-1, LLC, a Florida limited liability company (Landlord), to add a five year extension to the current lease agreement terms for the continued use of the satellite office space utilized by the Constitutional Offices in Phase II of Island Crossings in Hobe Sound.
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DEPARTMENT: Public Works
PREPARED BY: Name: Carla T. Segura, FRP
Title: Real Property Manager
REQUESTED BY: Sean Donahue, General Services Director
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
1. Lease Amendment prepared by:
Martin County
2. Parties to the Amendment:
Hobe Sound-1, LLC - Landlord
Martin County - Tenant
3. Purpose of the Amendment:
Extend the existing lease 5 years to provide the County reasonable time to review other options.
4. New/Renewal/Modified:
Modified to extend lease
5. Duration:
5 years (Nov. 1, 2026 thru Oct. 31, 2031)
6. Benefits to Martin County:
Provide uninterrupted services to the south county area and provide time to evaluate other options in the area.
7. Cost to Martin County:
Annual minimum triple net rent of $166,907.40 + insurance and CAM fees
In 2004, Martin County originally entered into a ten (10) year lease with two (2) five-year extensions, for a 7,600 sq. ft. office space, in Phase II of Island Crossings. Due to buildout timelines for improvements, the lease didn’t officially start until 2006.
In 2016, a First Amendment to Lease Agreement was approved exercising the option to extend the original term for 5-years through October 31, 2021. The second extension was exercised, through a written approval in 2021, extending the term for an additional 5 years through October 31, 2026.
Staff conferred with the Constitutional Officers, who requested to extend the lease an additional 5-year through October 31, 2031. This extension will allow for continued uninterrupted service to south county residents and will provide staff enough time to review other options for rental space. All terms and conditions of the original lease will remain, with the exception of the annual rent for years 21-25 which will increase pursuant to Section 19.01 of the Lease Agreement.
ISSUES:
None
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine it is consistent with applicable law, and staff have identified and addressed legal risks and developed strategies for legal defensibility, as applicable.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board approve the Second Amendment to Lease Agreement with Hobe Sound-1, LLC, a Florida limited liability company, and authorize the Chair to execute all documents necessary to complete this transaction.
ALTERNATIVE RECOMMENDATIONS
Pull this item from the Consent Agenda and provide staff with direction.
FISCAL IMPACT:
RECOMMENDATION
None
|
Funding Source |
County Funds |
Non-County Funds |
|
Annual Triple New Rent of for 5 years. |
$166,907.40 |
|
|
General Services Department |
x 5 years |
|
|
0001-0602-04400-519 |
|
|
|
Subtotal |
|
|
|
Estimated Project Total |
$834,535.40 |
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☒Other: Second Amendment to Lease Agreement