Broward County Commission Regular Meeting
Director's Name: Jonathan Daniels
Department: Port Everglades Division: Business Development
Information
Requested Action
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MOTION TO APPROVE Lease Agreement between Broward County, as landlord, and Siemens Energy, Inc., as tenant, for 520 square feet of office space in Suite 7 of the Amman Building, located at 2550 Eisenhower Boulevard in Port Everglades, for a period of two years commencing on March 1, 2023, and ending on February 28, 2025; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
Lease agreements exceeding one year require approval by the Broward County Board of County Commissioners.
What Action Accomplishes
Approves a Lease Agreement between Broward County and Siemens Energy, Inc., for 520 square feet of office space.
Is this Action Goal Related
Yes
Previous Action Taken
None.
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners' ("Board") Value of "Ensuring economic opportunities for Broward's diverse population and businesses" and the Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Siemens Energy, Inc. ("Siemens"), is an electronic service organization providing services at Port Everglades. Siemens has been a tenant at Port Everglades since January 2007. The Board approved its most current lease on February 23, 2021 (Item No. 8), with a term commencing on March 1, 2021, for a 520-square-foot office space in Suite 7 of the Amman Building, located at 2550 Eisenhower Boulevard in Port Everglades (see Exhibit 2). Such lease expires on February 28, 2023.
The new lease provides for a two-year term commencing on March 1, 2023, with an initial annual rent of $12,823.20, or $24.66 per square foot. The rate for the second year of the lease will be increased by the greater of the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) or 3%. The established rate for this office space pursuant to Chapter 32, Part 1, Section 32.6.a.2.(b) of the Broward County Administrative Code ("Code") is no less than $17.50 per square foot. The Code provides that leases may be adjusted upward or downward based on factors such as length of the lease, condition and location of the premises, and current market conditions, but at no less than the established rate. The initial annual rent for this new lease ($12,823.20) is 3% higher than the expiring lease's rent ($12,439.68).
The Lease Agreement has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Jorge A. Hernández, Director, Business Development Division, Port Everglades Department, (954) 468-3501
Josh Miller, Property Manager, Business Development Division, Port Everglades Department, (954) 468-3518
Fiscal Impact
Fiscal Impact/Cost Summary
The Port Everglades Department will realize approximately $26,000 in rental revenue over the lease's two-year term, including a projected increase of 3% in the second year.