Subject:
Title
Lease Agreement with Raytheon Company for space at the Young-Rainey STAR Center.label
Recommended Action:
Recommended Action
Approval and execution by the Director of Administrative Services of a lease agreement (Agreement) with Raytheon Company (Raytheon) for additional space at the Young-Rainey STAR Center (STAR Center) located at 7887 Bryan Dairy Road, Largo.
• Raytheon leases 447,449 square feet (sf) of manufacturing, office and production space at the STAR Center per the terms of a master lease and 6,650sf of temporary storage space per the terms of a license agreement.
• Raytheon has a need for additional office and computer lab space of 3,718sf of additional space.
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
5.2 Be responsible stewards of the public’s resources
5.3 Ensure effective and efficient delivery of county services and support
5.4 Strive to exceed customer expectations
Summary:
The purpose of this action is to establish a Lease Agreement between Raytheon and the Pinellas County Economic Development Authority, doing business as Pinellas County Economic Development, for 3,718 rentable square feet of office and computer lab space at the STAR Center. The term of the Agreement is eighteen (18) months with two (2) one (1) year extensions.
Background/Explanation:
Raytheon desires to lease office and computer lab space located outside the perimeter of its existing leased premises. The second floor of building 100 has 3,718sf of available space suitable for this purpose. This Agreement provides for an initial eighteen (18) month term with two (2) one (1) year extensions and permits Lessee to terminate with thirty (30) days written notice. The space is offered “as-is”, with exception to any asbestos, lead, or mold abatement removal by Lessor. The base rental rate is one dollar ($1.00) per square foot (psf) less than base rental “market” rate for this facility which is presented in lieu of Lessor’s usual contribution of one dollar ($1.00) psf toward Lessee improvements in newly leased space. The rental rate is $15.50psf plus ad valorem and surface water fees which are invoiced annually. The Lease will be effective upon full execution and rents will commence upon substantial completion of Raytheon’s improvements or April 1, 2020, whichever is sooner.
Fiscal Impact:
Upon completion of improvements and no later than April 1, 2020 (the Commencement Date), Raytheon shall pay the STAR Center $57,629.00 annually. The rent includes base rent of $6.42psf, utility charges of $3.85psf and plant maintenance charges of $5.23psf, and equates to $15.50psf to be paid in monthly installments of $4,802.42 during the initial eighteen (18) month term. Base rent is subject to a 3% increase on each annual anniversary of the Commencement Date.
The revenue and expenses associated with this Lease have been budgeted in the FY20 Adopted Budget for the STAR Center.
Delegated Authority:
Authority for the County Administrator to sign this Lease Agreement is granted under Code Section 2-62(b) and further delegated to the Director of Administrative Services on August 4, 2019.
Staff Member Responsible:
Andrew W. Pupke, Division Director, Facilities and Real Property Division
Partners:
Economic Development Authority
Attachments:
Lease Agreement
Location Map