AGENDA ITEM REPORT
TITLE:
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AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE ATTACHED LEASE AGREEMENT BETWEEN THE CITY OF COCONUT CREEK AND 4701 JOHNSON ROAD, LLC, FOR REAL PROPERTY LOCATED AT 4701 JOHNSON ROAD, SUITE 8, COCONUT CREEK, FL 33073 WITHIN THE LYONS TECH V - BUILDING 1. (SECOND READING)(PUBLIC HEARING)
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BACKGROUND:
This item was approved on First Reading at the June 23, 2022, City Commission Meeting.
Currently, the Coconut Creek Fire Rescue Department Administration is housed in temporary facilities that are undersized and inefficient. Staff anticipated adding an additional temporary modular building on the site of temporary Fire Station 113; however, after comparing the costs and the time associated with designing and permitting that additional modular space, staff determined that leasing office space, per the attached proposed lease agreement is more cost effective and will allow all Fire Rescue administrative staff to relocate into appropriate office space almost immediately and will increase efficiency of operations.
DISCUSSION:
Currently, the Fire Rescue administrative staff are housed at Fire Station 94 and the temporary Fire Station 113. When completed, the permanent Public Safety Complex within MainStreet will provide office space for all administrative staff in one location.
Staff evaluated all City buildings for the space requirements, and there is no space available currently to meet the existing needs. Staff also evaluated placing another temporary modular building on the temporary Fire Station 113 site. Staff determined that option would involve nearly a year delay, require additional county permitting, and would create the need to relocate the City’s Police K-9 training area. Staff also evaluated available office space for lease within the City. Several buildings are available for lease, but the office space located at 4701 Johnson Road most closely meets the needs of the Coconut Creek Fire Rescue Department. The attached proposed lease agreement will provide eight thousand four hundred thirty-eight (8,438) square feet for sixty-two (62) months, beginning on August 1, 2022, in the amount of twelve dollars and 25/100 ($12.25) per square foot NNN (triple net lease) plus operating expenses, with the first two (2) months free and an annual increase of three and one-half percent (3.50%) and landlord will give City a one-time tenant improvement allowance of twenty thousand dollars ($20,000.00).
RECOMMENDATION:
Staff recommends approval of this ordinance.
FISCAL IMPACT:
REVENUES: $ 0
EXPENDITURES: Approximately $144,121.08
BUDGETED? No
NOTES: Annual base rent is $103,365.48, plus operating expenses of approximately $40,755.60. Account Number 0163 - 4400 - Rental and Leases. Funding will be provided for in the FY2023 Budget.