Subject:
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Tenth Amendment to the Lease Agreement with Noblis, Inc.
Recommended Action:
.Recommended Action
Approval and execution by the County Administrator of the Tenth Amendment to the Lease Agreement (Amendment) with Noblis, Inc., formerly Mikros Systems, LLC (Noblis) at the Young-Rainey STAR Center (STAR Center), located at 7887 Bryan Dairy Road, Largo, to extend the term of the Lease Agreement (Lease) for one (1) year.
• The term of the Lease will be extended for one (1) year commencing on October 1, 2024, and terminating on September 30, 2025.
• Annual revenue increased from $33,091.08 to $39,615.67, which amount includes base rent and plant maintenance fees. This is an increase in annual revenue of $6,524.59.
• The base rent for FY25 will be $16,518.00 annually, which represents an increase of approximately 59.58%. Similar increases will be implemented on future renewals to bring Noblis’ base rent up to market rate.
• The plant maintenance fee recovers expenses for contractor fees, common area maintenance and facility operations costs. Increases are reviewed annually based on CPI up to five percent (5%).
• Revenue from this agreement is included in the Fiscal Year 2025 (FY25) Adopted Budget for the Economic Development Department in the STAR Center Fund.
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Strategic Plan:
Foster Continual Economic Growth and Vitality
4.1 Proactively attract and retain businesses with targeted jobs to the county and the region
Deliver First Class Services to the Public and our Customers
5.2 Be responsible stewards of the public’s resources
Summary:
This Tenth Amendment will extend the Lease for one (1) year commencing on October 1, 2024, and ending on September 30, 2025, and increase the base rent portion of the revenue by approximately 59.58%.
Background/Explanation:
Mikros entered into a one (1) year lease agreement at the STAR Center commencing October 1, 2014. A First Amendment to Lease Agreement dated October 11, 2015, extended the term for one (1) year and allowed for two (2) additional one (1) year options upon mutual written agreement of the Parties. The first one (1) year option was renewed by letter of agreement dated September 20, 2016, and extended the term to September 30, 2017.
In a Second Amendment dated August 25, 2017, the second and final option was exercised. This Amendment extended the term through September 30, 2018, and allowed for an additional 486 square feet to be leased on a month-to-month term for the handling of incoming/outgoing materials and products.
A Third Amendment dated September 15, 2018, extended the term through September 30, 2019, and the 486 square feet became part of the Premises bringing the total leased Premises 3,239 square feet.
The Fourth Amendment dated October 11, 2019, extended the term for an additional year commencing October 1, 2019.
The Fifth Amendment extended the term for an additional year commencing October 1, 2020, and reduced the Premises to its original 2,753 rentable square feet.
The Sixth Amendment extended the term for an additional year commencing October 1, 2021.
The Seventh Amendment renewed the lease for an additional one (1) year commencing October 1, 2022, increased the rental rate and added language concerning mergers.
The Eighth Amendment memorialized the merger of Mikros Systems, LLC to Noblis, Inc. to update their Commercial and Government Entity (CAGE) codes.
The Ninth Amendment extended the term of the Lease for one (1) year commencing on October 1, 2024, and terminating on September 30, 2025.
This Tenth Amendment will extend the term of the Lease for one (1) year commencing on October 1, 2024, and terminating on September 30, 2025, and increases the base rent portion of the revenue by approximately 59.58%.
Fiscal Impact:
The Fiscal Impact for this agreement will be $39,615.67 in annual revenue to the STAR Center. Revenue for this agreement is included in the FY25 Adopted Budget for the Economic Development Department in the STAR Center Fund.
Delegated Authority:
Authority for the County Administrator to sign this Amendment is granted under Code Section 2-62(b).
Staff Member Responsible:
Greg Concannon, Division Director, Economic Development
Partners:
Economic Development Authority
Attachments:
Tenth Amendment
Ninth Amendment
Eighth Amendment
Certificate of Merger
Seventh Amendment
Sixth Amendment
Fifth Amendment
Fourth Amendment
Third Amendment
Second Amendment
Letter of Agreement - 1st Option
First Amendment
Lease Agreement
Location Map