Subject:
Title
Seventh Amendment to the Lease Agreement with Northside Square, LLC for an extension of the existing lease term and establishment of a base expense year for operating expenses.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Seventh Amendment to the Lease Agreement (Amendment) with Northside Square, LLC to extend the Lease Agreement for a period of sixty (60) months and establish a base expense year for operating expenses, at Northside Square, 29269 US Highway 19 North, Clearwater.
Body
Strategic Plan:
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
Summary:
This Amendment provides for the continuation of a lease for the Property Appraiser for an additional sixty (60) months and establishes a base expense year for operating expenses. This location serves as the Property Appraiser’s north county office. The current lease expires on July 31, 2017.
Background/Explanation:
The Property Appraiser has occupied this leased location, consisting of 3,605 rentable square feet (RSF), since May 11, 1993.
The first amendment increased the rentable square footage and extended the lease expiration date four (4) years.
The second amendment extended the lease expiration date three (3) years.
The third amendment extended the lease expiration date two (2) years.
The fourth amendment extended the lease expiration date three (3) years.
The fifth amendment assigned the lease agreement to a new property owner.
The sixth amendment extended the lease expiration date five (5) years.
This lease extension begins August 1, 2017 and expires on July 31, 2022. The lease rate is inclusive of tenant improvements to be completed by the landlord to include the replacement of the existing millwork within the breakroom, repainting and replacement of the vinyl flooring and base within the restrooms and breakroom, restroom repairs, and miscellaneous repairs to the suite.
The base expense year for operating expenses will be established based on the 2017 actual cost of operating expenses. Beginning in 2018, the County will be responsible for a pro-rata share of increases above the 2017 base expenses. The landlord shall provide an annual statement of the prior year’s actual operating expenses; identifying the controllable expenses (e.g. contracted service agreements for maintenance and repairs), as well as, the non-controllable expenses (e.g. property taxes and insurance). Controllable operating expense increases are capped at 5% per year, and non-controllable expense increases are capped at 18% per year.
The lease expiration date aligns with the planned future relocation of the Property Appraiser and Tax Collector operations from Northside Square to the County-owned North County Service Center property located at 29582 US Highway 19 North, Clearwater.
Fiscal Impact:
The current monthly base rent is $5,557.71 ($18.50 per square foot per year). This five (5) year extension reduces the monthly base rent to $5,257.29 ($17.50 per square foot per year) for the first lease year. Upon each anniversary of the commencement date, the annual base rent will increase at a rate of 3% per year.
The 2017 base expense year is estimated to be $6.73 per square foot and is included in the initial annual base rent of $17.50 per square foot. Beginning in 2018, operating expenses are subject to an annual increase based upon the operating expenses for the prior year.
The source of funding is the Real Estate Management General Fund Operating Budget; Rentals and Lease Operating account. This amendment is consistent with the FY18 Proposed Budget.
Delegated Authority:
Authority for the County Administrator to sign this Seventh Amendment to the Lease Agreement is granted under Code Section 2-62(a)(2).
Staff Member Responsible:
Andrew W. Pupke, Director, Real Estate Management
Partners:
Pinellas County Property Appraiser
Attachments:
Northside Square Property Appraiser 7th Amendment
Northside Square Property Appraiser 6th Amendment
Northside Square Property Appraiser 5th Amendment
Northside Square Property Appraiser 4th Amendment
Northside Square Property Appraiser 3rd Amendment
Northside Square Property Appraiser 2nd Amendment
Northside Square Property Appraiser 1st Amendment
Northside Square Property Appraiser Original Lease