Subject:
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U.S Government Lease for Real Property between Pinellas County and the General Services Administration at the St. Pete-Clearwater International Airport.
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Recommended Action:
Recommended Action
Approval of the U.S. Government Lease for Real Property (Lease) with the General Services Administration (GSA) and Pinellas County. The GSA negotiates all federal government leased space. This leased space is for the Transportation Security Administration (TSA) at the St. Pete-Clearwater International Airport (PIE).
• The Lease term is 10 years with an option for an additional 5 year term.
• The existing Lease expires on August 31, 2024.
• The new Lease’s square footage is 3,192 square feet.
• The new annual rent amount is $74,969.88.
• The annual square footage has increased per the User Fee Schedule in the Fiscal Year (FY) 2024 Proposed Budget request. The new square footage in the administrative wing is $22.95 per square foot per annum. The square footage on the first floor of the terminal’s common areas is $24.26 per square foot per annum. The aggregate rent per square foot per annum is $23.49. Per the Federal Aviation Administration’s grant assurances, we must charge the fair market for our tenants. These rates were obtained by the County’s Economic Development Department for Pinellas County’s Commercial Real Estate Quarterly Update for 2024 Quarter 4.
• All tenant improvements shall be paid for by the TSA except for painting and carpet cleaning, which will be completed by PIE every 5 years.
• GSA lease revenue in the amount of $38,278.00 is included in the FY24 Adopted Budget. GSA lease revenue in the amount of $55,017.00 is included in the FY25 Proposed Budget.
Contract No. GS-04P-LFL02203 in the amount of $74,969.88 annually; Authorize the Chairman to sign and the Clerk of the Court to attest.
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Strategic Plan:
Foster Continual Economic Growth and Vitality
4.1 Proactively attract and retain business with targeted jobs to the County and the region
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
5.2 Be responsible stewards of the public’s resources
5.3 Ensure effective and efficient delivery of county services and support
Summary:
Summary
The GSA represents the TSA for their lease space requirements. The TSA desires to extend their current occupancy in the Airport Terminal Building for an additional 10-year period, commencing September 1, 2024. PIE currently has a lease with GSA in place from 2014.
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Background Information:
TSA requires the space in continued support of their duties for passenger security screening. They will continue their occupancy of approximately 3,192 square feet of floor area dedicated to offices, break room, and classroom use. The TSA reserves the right to terminate the Lease in whole or in part at any time with a 30-day written notice.
The current rates payable to PIE is $14.00 per square foot per annum in the administrative wing and $20.00 per square foot per annum on the first floor of the terminal’s common areas. For that lease, the GSA currently pays $38,278.00 to the County for 2,258 square feet.
Fiscal Impact:
The new Lease will provide the Airport with approximately $74,696.88 of annual revenue. Rent is to be paid monthly in the amount of $6,247.49. The new Terminal Building Lease reflects a fair market rate of $24.26 per square foot for the first floor office space, and $22.95 per square foot for second floor office space.
The contract is included in the FY24 Adopted Budget and the FY25 Proposed Budget. The annual revenue expected to be collected on the contract is 9.4% higher than in most recent years due to an increase in the User Fee Schedule, pending Board approval.
Staff Member Responsible:
Thomas R. Jewsbury, Director, St. Pete-Clearwater International Airport
Partners:
General Services Administration
Attachments:
U.S. Government Lease for Real Property GS-04P-LFL02203