Title
MOTION TO APPROVE A LEASE AGREEMENT WITH CHABAD LUBAVITCH OF PEMBROKE PINES, INC FOR THE +/- 2.271 ACRES OF IMPROVED LAND GENERALLY LOCATED AT THE SOUTHWEST CORNER OF NW 184TH AVENUE AND JOHNSON STREET AND AUTHORIZE THE PROPERTY CITY OFFICIALS TO EXECUTE THE LEASE.
Summary Explanation and Background
SUMMARY EXPLANATION AND BACKGROUND:
1. On January 17, 2018 the City Commission adopted ordinance 1891 approving a purchase and sale agreement with Chabad Lubavitch of Pembroke Pines for +/-2.271 acres of improved land generally located at the southwest corner of NW 184th avenue and Johnson street, more specifically described in the attached exhibit. The purchaser proposed to use the parcel to develop a synagogue, preschool and/or child care facility.
2. The property is the former site of a City owned and operated preschool. The parcel is adjacent to the Police Department's western offices.
3. On March 21, 2018, the City Commission passed the first amendment to the Purchase and Sale Agreement providing Chabad Lubavitch of Pembroke Pines additional time to obtain financing to purchase the property.
4. In May 2018 the City returned the deposit as the purchaser was not able to obtain the financing for the parcel.
5. Chabad Lubavitch of Pembroke Pines then inquired if the City would considering leasing the property for a period of five (5) years with an option to purchase the property for the previously approved value of $2 million.
6. Chabad Lubavitch of Pembroke Pines is proposing to pay the City a sum of $3,180.00 per month for use of the property and existing classroom space. Per the attached lease agreement, Chabad Lubavitch of Pembroke Pines is accepting the property as is and is repsonsible for all improvements to the property as well as applicable utlities and maintenence.
7. Administration is requesting City Commission approve the lease agreement with Chabad Lubavitch of Pembroke Pines and to authorize proper City officials to execute the lease agreement.
Item has been reviewed by the Commission Auditor and approved for the Agenda.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: No inital cost, Income from lease will be be deposited into account # 1-362030-6001
b) Amount budgeted for this item in Account No: Not Applicable
c) Source of funding for difference, if not fully budgeted: Not Applicable
d) 5 Year projection of operational cost of the project:
Revenue: 2018-2019 = 11 months at $3180 per month ($34,980.00) should the lease commence on Nov 1, 2018.
Revenue: 2019-2020 = 12 months at $3180 per month ($38,160.00)
Revenue: 2020-2021 = 12 months at $3180 per month ($38,160.00)
Revenue: 2021-2022 = 12 months at $3180 per month ($38,160.00)
Revenue: 2022-2023 = 12 months at $3180 per month ($38,160.00)
e) Detail of additional staff requirements:Not Applicable