PLACEMENT: Consent
TITLE:
title
APPROVAL OF LEASE EXTENSION WITH JEFFREY H. SANDS, A SOLE PROPRIETORSHIP, T/A NASSAU ARMS (SANDS) FOR USE AS A MARTIN COUNTY SHERIFF’S SUBSTATION AND WEATHER PROTECTION STORAGE AREA LOCATED WITHIN SANDS COMMERCE CENTER
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EXECUTIVE SUMMARY:
executive summary
This is a request for Board consideration of a Lease Extension to extend the Lease between Sands and Martin County for five years for a Cat-5 rated weather protection storage area and office space for the Martin County Sheriff’s Office at Sands Commerce Center in Palm City.
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DEPARTMENT: Public Works
PREPARED BY: Name: Carla T. Segura, FRP
Title: Real Property Manager
REQUESTED BY: Sheriff John Budensiek, Martin County Sheriff’s Office
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
Lease Extension drafted by:
Jeffrey H. Sands, a sole proprietorship, t/a Nassau Arms
Parties to the Lease:
Sands Commerce Center, LLC, Jeffrey H. Sands, t/a Nassau Arms - Landlord
Martin County - Tenant
Purpose of the Lease Extension:
Provide Martin County Sherriff’s office an additional 5-year office and storage space for equipment in Palm City
New/Renewal/Modified:
Renewal
Duration:
Additional 5-year term (Oct. 1, 2025 thru September 30, 2030)
Benefits to County:
Storage space for the Sheriff’s Office emergency operations equipment and Radio Services equipment as protection from the elements with added office space in Palm City.
Cost to County:
Base rent including the maintenance and management fee is approximately $67,158.00 the first year.
In April of 2020, the board approved a lease with Sands for use of a storage facility for the Martin County Sheriff’s Office emergency operations equipment and certain Radio Services equipment. This space also provides for an office area in Palm City.
The current Lease Agreement and Lease Extension is for approximately 6,825 sq. ft. and allows the Martin County Sheriff’s office to locate weather protection storage space for various types of equipment and supplies. The space will also serve as a deployment area during hurricanes.
The current lease expires September 30, 2025, and the Sheriff’s Office would like to continue the Lease for an additional term of five (5) years. The base rent for year six (6) will be $6.95 sq. ft. In addition to the base rent, the County is responsible for paying the common area maintenance and management fee (TIMM) which is currently $2.89 per sq. ft., along with all utilities, interior fixtures, and signage. The total annual base rent with the maintenance fee for the first year of the extension is $67,158.00 and will continue to be paid for from the County’s General Fund as it has been since the commencement of the Lease.
Initially, at inception of the original Lease, the Sheriff offered to fund a portion of the expense (50%) from his budget and the County would contribute the other half. Since the Sheriff is funded within the General Fund and the lease is between the County and Sands, the Board agreed to pay the Lease fees directly to alleviate the need for additional accounting transactions. At time of the renewal, the Sheriff does not have a budget available for this renewal and therefore is requesting the Lease fees continue to be paid from the County’s General Fund.
ISSUES:
None
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine if it is consistent with applicable law, has identified and addressed legal risks and has developed strategies for legal defensibility.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board approve the Lease Extension with Jeffrey H. Sands, a sole proprietorship, t/a Nassau Arms for storage and office space at Sands Commerce Center in Palm City and authorize the Chair to execute all documents necessary to complete this transaction.
ALTERNATIVE RECOMMENDATIONS
Pull this item from the Consent Agenda and direct staff accordingly.
FISCAL IMPACT:
RECOMMENDATION
The first year of the lease renewal (Y6) for FY26 and will be roughly $67,158.
|
Funding Source |
County Funds |
Non-County Funds |
|
General Fund Y6 |
$67,158.00 |
|
|
General Fund Y7 (estimated) |
$68,864.25 |
|
|
General Fund Y8 (estimated) |
$70,272.50 |
|
|
General Fund Y9 (estimated) |
$72,276.75 |
|
|
General Fund Y10 (estimated) |
$73,983.00 |
|
|
|
|
|
|
Subtotal |
$352,554.50 |
|
|
Project Total |
$352,554.50 |
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☒Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☐Other:
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