Subject:
Title
Seventh Amendment to the Lease Agreement with Mikros Systems, LLC to extend the term for an additional year at the Young-Rainey Star Center.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Seventh Amendment to the Lease Agreement (Seventh Amendment) with Mikros Systems, LLC (Mikros) to extend the term at the Young-Rainey STAR Center (STAR Center), located at 7887 Bryan Dairy Road, Largo.
• This Seventh Amendment will extend the term for one year commencing on October 1, 2022 and ending September 30, 2023.
• This Seventh Amendment also amends Section 5 of the Lease “Assignment and Subletting” to add language concerning mergers.
• Mikros’ continued presence at the STAR Center is beneficial in supporting local and national businesses by providing custom manufacturing, build to print, box build and testing services.
Body
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 Seventh Amendment renews the lease for an additional one (1) year commencing October 1, 2022 and adds language concerning mergers.
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 year and allowed for two (2) additional one-year options upon mutual written agreement of the Parties. The first one-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.
This Seventh Amendment renews the lease for an additional one (1) year commencing October 1, 2022, increases the rental rate per square foot by four (4) percent and adds language concerning mergers.
Fiscal Impact:
The Annual Rental Rate from October 1, 2021 through September 30, 2022 is $30,475.71, payable in monthly installments of $2,539.64. Rental rate per square foot is $3.48 per square foot.
Effective October 1, 2022 through the Lease Term, the Annual Rental Rate shall be $30,861.13, payable in monthly installments of $2,571.76. Due to market conditions the rental rate per square foot increased by four (4) percent to $3.62 per square foot. This rental revenue is included in the FY23 Budget Request.
Delegated Authority:
Authority for the County Administrator to sign this Seventh Amendment is granted under Code Section 2-62(b).
Staff Member Responsible:
Greg Concannon, Division Director, Economic Development
Diana Sweeney, Deputy Director, Department of Administrative Services
Partners:
Economic Development Authority
Attachments:
Seventh Amendment
Sixth Amendment
Fifth Amendment
Fourth Amendment
Third Amendment
Second Amendment
Letter of Agreement - 1st Option
First Amendment
Lease Agreement
Location Map