SUBJECT/RECOMMENDATION:
Title
Approve a one-year Lease with Christofi and Gimbel, Holdings, LLC., (Lessor) and the City of Clearwater (Lessee) for office space located at 1255 Cleveland Street located in Clearwater, FL in the not to exceed amount of $205,000.00 and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Considerable efforts have been expended over the last ten months planning for the city staff relocation in support of the Municipal Services Building (MSB) Renovation project (23-0035-EN). This proposed lease supports relocation of 60 city staff (out of 265 total) currently working out of the MSB. It was shared previously with Council that allowing Ajax Builders to have the entire building saves approximately $1 million dollars in construction costs and three months of construction duration in addition to reduced negative impacts to employee health, safety and productivity caused by working in a building partially under construction. Impacts of working in a partially occupied building would include considerable noise, dust and periodic power and equipment outages.
The proposed lease was the most economical of those found while meeting operational and customer service needs. The space is full-service at around $21 price per square foot (ppsf), includes furniture, valued at ~ $75,000 and requires no buildout. Over ten other locations were considered and analyzed with costs ranging from $16.50 to $27 ppsf with most requiring a wide range of renovations and upgrades, higher total lease costs, and need for furniture relocation or rental. County space required significant city reimbursement for air condition upgrades or did not provide adequate space due to the County’s current occupation.
Lease space was minimized by leveraging city-owned facilities. The Public Communications Department will relocate to available space the City is currently leasing at 600 Cleveland Street. The remaining ~195 MSB occupants, will relocate to existing city-owned space including the Main Library, Main Police Department building, Clearwater Gas Complex, Fire Station 48 training space, Countryside (District 3) Police Substation, the Marshall Street WRF lab space and the old Countryside Library. The project Owner's Representative, working with a move company, was able to procure used office furniture for these city-spaces, saving ~$75,000 versus purchasing and saving more when compared to rental furniture costs. Some of the existing furniture from the MSB will be relocated. The remainder MSB furniture will be auctioned/salvaged per procurement guidelines.
Presented lease location:
1255 Cleveland Street rental costs and particulars.
This lease represents the entire 3rd floor of the building, totaling 7761 square feet (SF) of pre-staged office space.
At no additional charge, this location represents tremendous cost savings from already being pre-staged with the majority of needed office fixtures only to require the City to install its IT facilities. This is a turn-key, full-service Class A office space building.
This full-service lease includes all necessary utilities at $20.93 per square foot with extended Building access 7am - 8pm.
$13,535.00 - monthly lease rent or $162,420.00 unadjusted annual lease rent.
$700.00 - set aside for monthly excess fees or $8,400.00 annually (for additional utilities or parking if applicable).
$13,535.00 - one time Security Deposit, refundable at lease competition.
$184,355.00 - total not to exceed lease cost.
$205,000.00 - requested lease approval amount not to exceed.
Upon Council approval, the first month's rent ($13,535.00) plus security deposit ($13,535.00) totaling ($27,070.00 total) will be due to the building owner (lessor).
The building owner (lessor) has already pre-scheduled the needed I/T connections for a seamless City staff transition.
Lease was reviewed and approved by Public Works and the City Attorney Departments.
APPROPRIATION CODE AND AMOUNT:
ENGF230001-MISC-LEASE
Funds are available in capital improvement project ENGF230001, MSB Renovation, to fund this lease. This project is funded by the General Fund.
STRATEGIC PRIORITY:
Adopt responsive levels of service for public facilities and amenities, and identify resources required to sustain that level of service. Inspire citizen participation through civic engagement and volunteerism to build strong, inclusive, and engaged communities.
