Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Public Works and Environmental Services
Division: Real Property and Real Estate Development
Information
Requested Action
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A. MOTION TO APPROVE proposed lease agreement between Broward County and Cypress West, LLC, for the Tax Collector’s Office operations and occupancy; and authorize the Mayor and Clerk to execute the final form of same. (Commission District 8)
B. MOTION TO ADOPT budget Resolution transferring funds from reserve within the General Fund in the amount of $600,000 in order to fund prepaid rent for the principal office of the Tax Collector. (Commission District 8)
C. MOTION TO ADOPT budget Resolution transferring funds from reserve within the General Capital Outlay Fund in the amount of $1,654,000 for the costs associated with completion of leasehold improvements for the principal office of the Tax Collector. (Commission District 8)
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Why Action is Necessary
A. Board of County Commissioners’ approval is required to enter into an agreement to lease property, pursuant to Broward County Administrative Code, Section 6.23 and Section 125.031, Florida Statutes.
B. & C. Transferring funds from reserve requires approval of the Board of County Commissioners.
What Action Accomplishes
A. Authorizes execution of a proposed lease agreement to provide office premises for the Tax Collector’s operations in Fort Lauderdale.
B. & C. This action appropriates resources from reserves for the costs associated with leasehold improvements and prepaid rent for space to be occupied by the Tax Collector’s Office as their principal office.
Goal Related Icon(s)
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Previous Action Taken
None taken.
Summary Explanation/Background
THE PUBLIC WORKS AND ENVIRONMENTAL SERVICES DEPARTMENT AND THE REAL PROPERTY AND REAL ESTATE DEVELOPMENT DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
Relocation of the Tax Collector’s Office (TCO) is required to provide space for its current operations. The present TCO space is not adequate, and the current lease agreement will expire at the end of 2026. This necessitates leasing a new location and outfitting appropriate office space for public areas, operations, administration, staff, and document control.
A proposal between Cypress Creek West, LLC (Landlord) and Broward County (Tenant) was presented and negotiated to suit the TCO as the occupant. The proposed lease agreement is attached hereto as Exhibit 1 [The lease agreement is being finalized and will be distributed as additional material.]. Turnkey Tenant Improvements are specified and detailed throughout the Lease Agreement, which shall be satisfied by the Landlord and its general contractor.
The property is located at 1515 West Cypress Creek Road in Fort Lauderdale and consists of 99,027 SF, of which the leased premises will consist of approximately 48,229 SF on two floors, for a term of 192 months (sixteen years) at an annual rental rate of $1,205,725 (or $100,477 monthly) for the initial lease year plus operating expenses. The initial lease term provides for a rental incentive discount which the Landlord will apply to the Tenant Improvement Budget along with the County’s not to exceed contribution of $1,654,000, providing the funds necessary to improve the public floor lobby and operations areas, designed with operational intent and safety. Operating expenses for the initial lease year are estimated at $12 per square foot, based on the anticipated amounts to be imposed on existing building tenants in 2026. The lease agreement details and defines operating expenses which include costs for building utilities, janitorial service, maintenance, management, HVAC, and elevator maintenance. The lease agreement provides for two optional five-year extensions.
All documents were reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Darby P. Delsalle, AICP, Director, Housing and Urban Planning Division (954) 357-9792.
Fiscal Impact
Fiscal Impact/Cost Summary
The budget action for prepaid rent in the amount of $600,000 is for approximately six months of rental costs; annualized this lease agreement is $1,205,725, excluding operating expenses over the base year expenses in 2026. In addition, this action approves $1,654,000 for leasehold improvement costs.