Subject:
First Amendment to Lease Agreement with BAE Systems Information and Electronic Systems Integration Inc.
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Recommended Action:
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Approval and execution by the County Administrator of the First Amendment to Lease Agreement (First Amendment) with BAE Systems Information and Electronic Systems Integration Inc. (BAE) at the Young-Rainey STAR Center (STAR Center), located at 7887 Bryan Dairy Road, Largo.
• The term of the Lease Agreement (Lease) will be extended for a two (2) year term commencing on October 1, 2023 and ending on September 30, 2025, with three (3) additional one-year renewal term options.
• Annual revenue will be $61,235.46 which is included in the Fiscal Year 2024 Budget and includes both base rent and Plant Maintenance Fees.
• The base rent portion of the revenue is comparable and consistent with the base rent rates of similar STAR Center tenants.
• 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.
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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:
First Amendment to Lease Agreement with BAE to extend the term of the Lease for a two (2) year term commencing on October 1, 2023 and ending on September 30, 2025, with three (3) additional one-year renewal term options.
Background/Explanation:
The STAR Center and Raytheon Company entered into a Lease commencing on December 31, 2019, for 3,718 rentable square feet of administrative office space located at 7887 Bryan Dairy Road, Building 100, Second Floor, Office 135.
The STAR Center, BAE and Raytheon Company entered into an Assignment and Assumption Agreement commencing on January 17, 2020 which assigned the Lease to BAE.
The STAR Center and BAE now desire to extend the Lease for an additional two (2) years with three (3) one-year options to extend.
Fiscal Impact:
The Fiscal Impact for this agreement will be a $3,606.46 increase in annual revenue for the STAR Center’s FY24 Budget.
Delegated Authority:
Authority for the County Administrator to sign this agreement is granted under Code Section 2-62(a)(1).
Staff Member Responsible:
Greg Concannon, Division Director, Economic Development
Partners:
Economic Development Authority
Attachments:
First Amendment to Lease Agreement
Assignment and Assumption Agreement
Lease Agreement