AGENDA ITEM REPORT
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A RESOLUTION AUTHORIZING THE MAYOR, OR DESIGNEE, TO EXECUTE THE FIRST AMENDMENT TO THE JULY 14, 2022 COMMERCIAL LEASE AGREEMENT WITH 4701 JOHNSON ROAD, LLC FOR REAL PROPERTY LOCATED AT 4701 JOHNSON ROAD, SUITE 8, COCONUT CREEK, FLORIDA 33073 WITHIN THE LYONS TECH V - BUILDING 1.
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BACKGROUND:
In 2022, the City of Coconut Creek entered into a five (5)-year lease agreement with 4701 Johnson Road, LLC for the temporary housing of Coconut Creek Fire Rescue administrative staff at 4701 Johnson Road, Suite 8, Coconut Creek, Florida 33073 ("Lease"), during the design and construction of Fire Station 113 and the Fire Administration offices within MainStreet.
The current Lease expires on September 30, 2027, and provides for one (1) five (5)-year extension. Fire Station 113 and the Fire Administration offices are currently in the design phase, and the City anticipates a continued need for this leased space during the proposed extended Lease term to support ongoing City facility projects.
DISCUSSION:
The proposed resolution authorizes the First Amendment to the Lease, extending the Lease for sixty-four (64) months, commencing on October 1, 2027, and expiring on January 31, 2033.
Although the original Lease provides for one (1) five (5)-year, or sixty (60)-month, extension, the City negotiated an additional four (4) months as part of the extension agreement. Under the negotiated terms, Base Rent will be fully abated for the first four (4) months of the extension, from October 1, 2027 through January 31, 2028. The sixty-four (64)-month term, therefore, provides the City with four (4) months of Base Rent abatement at the beginning of the extension, while preserving a full five (5) years of paid occupancy thereafter. The negotiated rental rates are also comparable to current market rates for similar office space in the area, providing the City with continued occupancy at a competitive rate while avoiding the costs and operational impacts as...
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