Subject:
Title
Second Amendment to Lease Agreement with Epsilon Systems Solution, Inc. for space at the Young-Rainey STAR Center.label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Second Amendment to Lease Agreement (Amendment) with Epsilon Systems Solution, Inc. (Epsilon) to extend the Lease for use of 5,852 rentable square feet at the Young-Rainey STAR Center (STAR Center) located at 7887 Bryan Dairy Road, Largo.
• The current agreement expires on September 30, 2023.
• This Amendment extends the Lease from October 1, 2023 to September 30, 2025.
• Epsilon shall have the right to further extend the Lease for three (3) additional one-year renewal terms.
• This rental rate is comparable with other tenants in the facility.
• Beginning October 1, 2025 (First Option) there will be an increase in the Facility Space rent per square foot and the operating, pass-through and maintenance charges relating to Epsilon pro rata share of the Facility, per Exhibit “A-1”, Rental Rate.
• This is an increase in annual revenue of $2,750.44. These increases will recur annually through the remaining terms of the Amendment.Body
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.1 Proactively attract and retain businesses with targeted jobs to the county and region
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
5.4 Strive to exceed customer expectations
Summary:
Approval and execution by the County Administrator of the Second Amendment to Lease Agreement with Epsilon Systems Solution, Inc. to extend the Lease for use of 5,852 rentable square feet at the Young-Rainey STAR Center.
Background/Explanation:
Epsilon entered into a Lease Agreement commencing on September 26, 2018 for 3,296 rentable square feet of administrative office space at the STAR Center.
A First Amendment to Lease Agreement dated May 20, 2020 extended the term for eighteen (18) additional months and expanded its Premises to the area within the perimeter of the Tenant’s Premises originally reserved as “Expansion Premises” on Exhibit A “Space Plan” of the Lease.
This Amendment extends the Lease Agreement for an additional two (2) years from October 1, 2023 to September 30, 2025 with three (3) additional one-year renewal terms available to Epsilon.
Fiscal Impact:
The Fiscal Impact for this agreement will be $94,685.36 in annual revenue to the STAR Center for FY24 and is consistent with the FY24 estimate. This is an increase in annual revenue of $2,574.88.
Beginning October 1, 2025 (First Option) there will be an increase in the Facility Space rent per square foot and the operating, pass-through and maintenance charges relating to Epsilon pro rata share of the Facility, per Exhibit “A-1”, Rental Rate. This is an increase in annual revenue of $2,750.44. These increases will recur annually through the remaining terms of the Amendment.
Delegated Authority:
Authority for the County Administrator to sign this Amendment is granted under Code Section 2-62(b).
Staff Member Responsible:
Dr. Cynthia Johnson, Director, Economic Development
Partners:
Economic Development Authority
Attachments:
Second Amendment
First Amendment
Lease Agreement
Location Map