Title
MOTION TO APPROVE THE SECOND AMENDMENT TO LEASE AGREEMENT BETWEEN CITY OF PEMBROKE PINES AND CCTM2 LLC. (“TENANT”) TO ADD TWO (2) ADDITIONAL FIVE (5) YEAR RENEWAL TERMS TO THE AGREEMENT BEYOND THE CURRENT TERM EXTENDING ITS TOTAL TERM TO MARCH 27, 2043 AND TO EXPAND THE SIZE OF THE PREMISES BY 360 SQUARE FEET FOR A TOTAL OF APPROXIMATELY 1,512 SQUARE FEET. (828548 - 901 NW 155 AVE, PEMBROKE PINES, FL 33028).
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. The City and T-Mobile South LLC, a Delaware limited liability company (“T-Mobile”), entered into a Lease Agreement dated July 9, 2008 (as amended and assigned, the “Agreement”), whereby City leased to T-Mobile a portion of land being described as a 480 square feet portion of that property (said leased portion being the “Premises”) located at 901 NW 155th Avenue, Pembroke Pines FL 33028 at the Towngate Park. CCTM2, LLC is successor in interest in the Agreement to T-Mobile.
2. The term of the Agreement commenced on March 28, 2008, and has an original term, including all Renewal Terms (as defined in the Agreement), that will expire on March 27, 2033 (“Original Term”).
3. City and Tenant now desire to amend the terms of the Agreement to provide for two (2) additional five (5) year Renewal Terms beyond the Original Term extending its total term to March 27, 2043, unless sooner terminated as provided in the Agreement. The Agreement shall be renewed upon mutual consent and written agreement by the parties.
4. City and Tenant entered into that First Amendment to Lease Agreement dated April 2, 2014, which expanded the size of the Premises to be approximately 1,152 square feet, as evidenced by that Amended and Restated Memorandum of Lease Agreement dated April 2, 2014.
5. Tenant is requesting from the City an additional 360 square feet of land as shown and described in exhibit A of the Second Amendment to install additional communication equipment. The new overall lease area, if approved, will be approximately 1,512 square feet.
6. As consideration for the additional land, tenant shall pay the City additional rent payment of $4,800, annually, as set forth in section 6 of the Second Amendment. As additional consideration, the Tenant shall pay the City a one-time payment of $20,000 within sixty (60) days of full execution of the Second Amendment.
7. Each annual rent payments and escalations of 3% shall continue through the renewal terms. In addition to the rental payment described in Section 6.01 of the Original Agreement, as amended, Tenant shall pay to City 50% of all rental revenue received from any third party source for co-location within thirty days of receipt of same.
8. The Finance Department recommends the City Commission to approve the Second Amendment to lease agreement between City of Pembroke Pines and CCTM2, LLC. to add two (2) additional five (5) year renewal terms to the Agreement, beyond the current term extending its total term to March, 27, 2043 and expand the size of the premises by 360 square feet for a total of approximately 1,512 square feet.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Estimated Annual Revenue: The estimate annual revenue for FY2024 is $85,600, which is comprised of estimated annual rental fee of $60,800 plus additional rent payment of $4,800 plus a one-time payment of $20,000.
b) Amount budgeted for this item in Account No: 001-000-6001-362031-0000-000-0000- Rental - Cell Towers Exempt
c) Source of funding for difference, if not fully budgeted: Not applicable.
d) 5 year revenue projection:
FY 2024 FY 2025 FY 2026 FY 2027 FY 2028
Revenues $85,599.73 $67,567.72 $69,594.75 $71,682.59 $73,833.07
Expenditures $.00 $.00 $.00 $.00 $.00
Net Revenue $85,599.73 $67,567.72 $69,594.75 $71,682.59 $73,833.07
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.