Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Public Works and Environmental Services
Division: Housing Finance Authority
Information
Requested Action
title
A. MOTION TO APPROVE Lease Agreement between Broward County (the “County”) and the Housing Finance Authority of Broward County, Florida (the “HFA”), for office space located at 110 NE 3rd Street, Fort Lauderdale, Florida (the “Property”), commencing October 1, 2025, and continuing through September 30, 2030, at an initial annual rent of $185,540, with automatic 3% annual increases, and with two successive five-year renewal options (the “Lease Agreement”); and authorize the Mayor and Clerk to execute same.
B. MOTION TO ADOPT Resolution, attached as Exhibit 2, pursuant to Section 9½-41 of the Broward County Code of Ordinances (“Code”) approving the HFA entering into the Lease Agreement.
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Why Action is Necessary
Motion A: Board approval is necessary for the County to enter into the Lease Agreement.
Motion B: Pursuant to Section 9½-41 of the Code, HFA agreements must be approved by a Resolution of the Board.
What Action Accomplishes
Motion A approves the Lease Agreement between the County and the HFA, providing for the County’s continued use of a portion of the Property for office space.
Motion B adopts the required Resolution approving the HFA’s entry into the Lease Agreement.
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Previous Action Taken
None taken.
Summary Explanation/Background
THE PUBLIC WORKS AND ENVIRONMENTAL SERVICES DEPARTMENT AND THE HOUSING FINANCE AUTHORITY RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
The HFA owns the three-story office building located at 110 NE 3rd Street, Fort Lauderdale, Florida (the “Property”). On June 21, 2023, the Board of the HFA approved a Memorandum of Understanding between the HFA and the Broward County Housing Finance Division to lease approximately 8,646 square feet of the Property for use as office space, with a rental term of two years, from October 1, 2023 to September 30, 2025, at a total gross rent of $293,964 for the two-year term (rent per year was $146,982 and space allocated for the County was 8,646 square feet).
County staff analyzed the Property’s value and its space utilization by the HFA and the County. The Property is classified as “B” grade office space, according to a memo from the Broward County Real Property and Real Estate Development Division (Exhibit 3), which estimates the value in 2025 at $20 per square foot, triple net. The Property is 12,858 square feet. This space is allocated to the following activities:
HFA 2,937 sq. ft.
COUNTY 9,277 sq. ft.
SHARED SPACE 644 sq. ft.
The proposed Lease Agreement between the County and the HFA (Exhibit 1) establishes a five-year lease term, retroactive from October 1, 2025, through September 30, 2030, at a total gross rent of $927,700 ($185,540 annually). Rent is based on $20 per square foot in year one, with automatic annual increases of 3% beginning in year two. The Lease Agreement also provides the County with the option to renew for up to two successive five-year terms, subject to HFA approval.
Pursuant to Section 9½-41 of the Broward County Code of Ordinances, any contracts the HFA wishes to enter into must first be approved by resolution of the Board. Attached as Exhibit 2 is the required proposed Resolution.
The proposed Resolution and the Lease Agreement were prepared and approved for legal sufficiency by the County Attorney’s Office.
Source of Additional Information
Ralph Stone, Executive Director, Housing Finance Authority
Lary Mahoney, Director, Real Property and Real Estate Development
Fiscal Impact
Fiscal Impact/Cost Summary
Approval of this item presents no fiscal impact on the General Fund. The County’s rent to the HFA is paid by grants.