Subject:
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First Amendment to the second floor lease with Northside Square, LLC for the merging of the first floor lease and the second floor lease into one agreement, expansion of the second floor leased space, extension of the current lease term, and tenant improvements to the first floor space for the Tax Collector.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the First Amendment to the second floor lease with Northside Square, LLC, for the merging of the first floor lease and the second floor lease into one agreement, an expansion of the second floor leased space, extension of the current lease term, and tenant improvements to the first floor space for the Tax Collector, at 29399 US Hwy.19, Clearwater (Northside Square).
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Strategic Plan:
Deliver First Class Service 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:
This First Amendment merges the first and second floor leases into one lease agreement; provides for the expansion of the second floor leased space (Suite 280) by 2,073 rentable square feet (RSF) to allow the Tax Collector to provide additional services at this location; provides an extension of the current lease term for the existing 27,330 RSF to establish a coterminous expiration of all leased space; and incorporates tenant improvements for the first floor premises.
Background/Explanation:
The Tax Collector has occupied first floor space (12,055 RSF) at Northside Square since August 1993. In October 2016, the Tax Collector began occupying space on the second floor (15,275 RSF) of the building.
This first amendment merges the first floor and second floor leases into one agreement and includes the expansion second floor space footprint by 2,073 RSF (Suite 280). The new total square footage is 29,403 RSF. The expansion is necessary to support the Tax Collector’s requirement to issue State of Florida Concealed Weapon or Firearm Licenses and an Application Center for the Transportation Security Administration (TSA) Pre-Check process. These services are relocating from the Clearwater Courthouse, 315 Court St., Clearwater.
The extended lease agreement term shall commence upon the completion of the Suite 280 construction, as confirmed by the issuance of a Certificate of Occupancy. The agreement expiration date aligns with the planned relocation of the Tax Collector operations from Northside Square to the North County Service Center property located at 29582 US Highway 19 North, Clearwater. This First Amendment includes three (3) additional one-year renewal options.
The first floor tenant improvements include interior remodeling to reconfigure existing work areas, construct a new breakroom, updates to the common area restrooms, new paint and floor covering, and associated ceiling, electrical/data, and HVAC work.
Fiscal Impact:
The current monthly base rent for the Tax Collector’s leased space at Northside Square totals $45,238.65. Upon the commencement of the expansion space, Suite 280, the monthly base rent will increase by $4,157.44 per month, or $49,889.26 annually. Base rent is subject to a 3.0% annual increase. The lease rate includes turn-key tenant improvements for the existing first floor in the amount of $187,272.98 and for Suite 280, the expansion space, in the amount of $81,690.00.
There is a one-time cost of $18,000.00 for the installation of the low voltage wiring for the expansion space, which is required in order to provide computer and telephone connectivity.
The source of the funding is from the Tax Collector’s budget.
Delegated Authority:
Authority for the County Administrator to sign this First Amendment is granted under Code Section 2-62(a)(2).
Staff Member Responsible:
Andrew W. Pupke, Director, Real Estate Management
Partners:
Tax Collector
Attachments:
First Amendment to the Second Floor Lease - Northside Square
Lease Agreement Northside Square Suite 100
Lease Amendments 1-3 Northside Square Suite 100
Lease Agreement Northside Square Suite 200