Broward County Commission Regular Meeting
Director's Name: Stephen Farmer (Acting Director)
Department: Finance and Administrative Services Division: Administration
Information
Requested Action
title
MOTION TO ADOPT Resolution (Exhibit 1) approving the terms of a lease agreement for approximately 960 square feet of space at the Broward County-owned Convention Center Hotel to FedEx Office and Print Services, Inc. (“Lease”), pursuant to Section 125.35, Florida Statutes.
body
Why Action is Necessary
Board approval is required to approve leases of County property.
What Action Accomplishes
Provides approximately 960 square feet of space for Business Center, Parcel Management operations, and storage space to serve guests and visitors at the Broward County-owned hotel.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
On May 19, 2015 (Item No. 41B), the Board designated itself as the Direct Procurement Authority for the Broward County Convention Center Expansion and Headquarters Hotel Projects. Matthews Southwest was selected as Project Developer following completion of a three-step procurement. Following the award of the Project Developer, the Omni Hotels Management Corporation (Omni) was selected as the operator for the Convention Center Hotel.
The Convention Center Hotel, which is slated to open in the fourth quarter of 2025, features 801 rooms; 73,000 square feet of meeting and ballroom space; multiple restaurant options; an 11,000 square-foot, full-service spa and fitness center; and over 30,000 square feet of pool decks. The Convention Center Hotel is also prominently positioned along the Intracoastal Waterway with a scenic view of the Atlantic Ocean. Under the Hotel Management Agreement between the County and Omni, Omni is authorized to negotiate terms approved by the County of leases and licenses for the use and occupancy of any portion of the public space at the Convention Center Hotel, including all stores, office and lobby space.
The proposed lease agreement between FedEx Office and Print Services, Inc. (FedEx) and the County provides the Convention Center Hotel with Business Center and Parcel Management operations to serve guests and visitors. The initial term of the lease is for five years with a five-year renewal at FedEx’s option. The lease space includes a total of 960 square feet consisting of a professional business center, parcel management area, and storage. FedEx will be obligated to make monthly lease payments of $3,333 ($40,000 annually) plus revenue sharing ranging from 10% to 15% of net revenues after reaching specified thresholds. If the County were to terminate the lease prior to the initial five-year period, the County will be responsible for paying a pro-rata share of FedEx’s upfront capital investment of $325,483, to be fully amortized over a 60-month period. Other material terms of the lease are in Exhibit A to the Resolution.
This item approves the terms of the lease with FedEx at the Convention Center Hotel pursuant to the Section 125.35, Florida Statutes, and authorizes the County Administrator to negotiate and execute the lease on the terms provided in the Resolution, subject to approval as to legal sufficiency by the Office of the County Attorney. The terms of the lease have been reviewed by the County Attorney’s Office, Bond Counsel to the Series 2022 Bonds issued to help fund the construction of the Convention Center Hotel, HVS as Asset Manager, the Broward County Public Works Department and the Finance and Administrative Services Department. The current Hotel Management Agreement with Omni requires that the County approve and execute all properly solicited and negotiated lease agreements.
Source of Additional Information
Stephen Farmer, Deputy Chief Financial Officer, 954-357-7130
Fiscal Impact
Fiscal Impact/Cost Summary
There is no fiscal impact to the County based on this individual lease (the lease payments will be made to Omni). The County will be receiving revenue from Omni based on total hotel operations and not based on individual leases.
If the County terminates lease, the County will be responsible for paying a pro-rata share of the Tenant's capital investment ($325,483 fully amortizing over a 60-month period).