Broward County Commission Regular Meeting

MOTION TO APPROVE Sixth Amendment to Lease Agreement between GV-IP 110 Tower Owner, LLC (Landlord) and Broward County (Tenant) for approximately 29,730 square feet located on the 22nd and 28th Floors of 110 SE 6th Street in Fort Lauderdale for a term of five years plus one five-year renewal with the right of early termination, at a rental rate of $1,171,659 for the first year, for the continued use by the State Attorneys' office; and authorize the Mayor and Clerk to execute same. (Commission District 7)

ACTION:  (T-10:39 AM)  Approved.

VOTE:  9-0.

Board of County Commissioners' approval is required to lease property pursuant to Broward County Administrative Code, Section 6.23.

Provides the State Attorneys' office with leased space until completion of renovations to the East Wing of the Broward County Judicial Complex.

None.

THE PUBLIC WORKS DEPARTMENT/FACILITIES MANAGEMENT DIVISION/REAL PROPERTY SECTION RECOMMENDS APPROVAL OF THE ABOVE MOTION.

On December 13, 2016 (Item No. 38), the Board of County Commissioners authorized the County Administrator to take any necessary actions to execute a lease(s) on behalf of the Board of County Commissioners to secure emergency space for the State Attorneys' Office (SAO) due to the renovations of the East Wing of the Broward County Judicial Complex. The County entered into four new leases to accommodate SAO with the 110 Tower leased space already in existence. The new leased premises included 4,223 square feet on the first floor of the Advocate Building for $95,074 annually; 6,246 square feet on the third floor of the Advocate Building for $177,378 annually; 7,532 square feet on the sixth floor of Courthouse Place for $246,265 annually; and 9,876 square feet on the first and third floors of the Scherer Building for $382,136 annually. The lease for the two floors of the Scherer Building were terminated in June 2018 as some SAO staff were consolidated into other spaces. Remaining SAO staff in the 110 Tower will be relocated to the East Wing upon completion of renovations.

The original short-term lease in the 110 Tower for the 22nd Floor was extended via several lease amendments; then in 2015 the fifth lease amendment expanded the space to include the 28th Floor. This proposed Sixth Amendment extends the term to October 31, 2023 plus one five-year renewal option with the right to terminate any time after the first five years.

The rental rate for the first year of the extension term was negotiated down from $40.71 to $39.41 per square foot, a 3.2% reduction, for a rental rate of $1,171,659 on a gross rent basis (base rent plus expenses) for the first year. The second year is also set at a gross rent basis and in the third lease year the rent changes to triple net, whereby the County pays for base rent plus actual operating expenses. The annual base rent in year three is reduced to $29.50 per square foot or $877,035 plus the operating expenses which are anticipated to range from $10 to $14.75 per square foot. All other terms and conditions of the lease remain the same. The base rent over the five year period is $5,089,479.

All documents have been reviewed and approved as to form by the Office of the County Attorney.

Purvi A. Bhogaita, Director, Real Property Section, (954) 357-7333
Thomas J. Hutka, P.E., Director, Public Works Department, (954) 357-6410