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R18-0371 17 18 19 20 21 22 23 RESOLUTION NO. R18-037 A RESOLUTION OF THE CITY OF BOYNTON BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO SIGN LETTERS OF INTENT FOR THREE TEMPORARY LEASE SPACES TO ALLOW STAFF TO NEGOTIATE A FINAL LEASE WHICH WILL BE BROUGHT BACK BEFORE THE COMMISSION FOR REVIEW AND APPROVAL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the proposed schedule of construction for Boynton Beach Town Square includes removing the public structures housing city hall, police and library staff, and WHEREAS, the City will need temporary space to operate from to ensure uninterrupted City services; and WHEREAS, staff, through E2L Real Estate Solutions identified three available buildings and is requesting approval to sign Letters of Intent which will allow the City and the Lessor to develop lease documents for consideration by the City Commission when the Commission considers approval of Phase II of the Boynton Beach Town Square; and WHEREAS, the City Commission of the City of Boynton Beach, Florida, upon the recommendation of staff, deems it to be in the best interests of the City residents to approve and authorize the City Manager to sign Letters of Intent for three temporary lease spaces to allow staff to negotiate a final lease which will be brought before the City Commission for review and approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: C:\Users\Stanzione'RAppData\Local\Microsoft\Windows\Temporary Intemet Files\Content.IE5\52FYTEOE\LOI_for_temporary_lease_space_-_Reso.doc Al 31 31 411 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution upon adoption hereof. Section 2. The City Commission hereby approves and authorizes the City Manager to sign Letters of Intent for three temporary lease spaces to allow staff to negotiate a final lease which will be brought before the City Commission for review and approval, copies of the Letters of Intent are attached hereto as Composite Exhibit "A." Section 3. This Resolution shall become effective immediately upon passage. PASSED AND ADOPTED this 6th day of March, 2018. CITY OF BOYNTON BEACH, FLORIDA 4 4 4 5 51 5 1 ATTEST: 571 Judith A. Pyle, CMC City Clerk (City Seal) Mayor — Steven B. Grant Vice Mayor — Justin Katz Commissioner — Mack McCray Commissioner — Christina L. Romelus Commissioner — Joe Casello C:\Users\StanzioneT\AppData\Local\Microsoft\Windows\Temporary Intemet Files\Content.IE5\VAGZE6P0\LOI_for_temporary_lease_space_-_Reso. doc VOTE YES NO J) 10 11 12 13 14 151 16 17 185 191, 20 1 21' i 2Z 2r- 26 RESOLUTION NO. RIS -037 A RESOLUTION OF THE CITY OF BOYNTON BEACH, FLORIDA, APPROVING AND AUTHORIZING THE CITY MANAGER TO SIGN LETTERS OF INTENT FOR THREE TEMPORARY LEASE SPACES TO ALLOW STAFF TO NEGOTIATE A FINAL LEASE WHICH WILL BE BROUGHT BACK BEFORE THE COMMISSION FOR REVIEW AND APPROVAL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the proposed schedule of construction for Boynton Beach Town Square includes removing the public structures housing city hall, police and library staff, and WHEREAS, the City will need temporary space to operate from to ensure uninterrupted City services; and WHEREAS, staff, through E21, Real Estate Solutions identified three available buildings and is requesting approval to sign Letters of Intent which will allow the City and the Lessor to develop lease documents for consideration by the City Commission when the Commission considers approval of Phase II of the Boynton Beach Town Square; and WHEREAS, the City Commission of the City of Boynton Beach, Florida, upon the recommendation of staff, deems it to be in the best interests of the City residents to approve and authorize the City Manager to sign Letters of Intent for three temporary lease spaces to allow staff to negotiate a final lease which will be brought before the City Commission for review and approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF 27� � THE CITY OF BOYNTON BEACH, FLORIDA, THAT: C:\Users\StanzioneT\AppData\Local\Microsoft\Windows\Temporary Internet Fi les\Content.?E5\52FYTECE\LOI_for_temporary_lease_space_-_Reso.doc al KU 33! 37 3 39 4d1 41 42 4� 4 �I 45 4 47 4 4q, 5 51 5 5 5 5 5 57 5 5 60 611 62 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution upon adoption hereof. Section 2. The City Commission hereby approves and authorizes the City Manager to sign Letters of Intent for three temporary lease spaces to allow staff to negotiate a final lease which will be brought before the City Commission for review and approval, copies of the Letters of Intent are attached hereto as Composite Exhibit "A." Section 3. This Resolution shall become effective immediately upon passage. PASSED AND ADOPTED this 6th day of March, 2018. CITY OF BOYNTON BEACH, FLORIDA Mayor — Steven B. Grant Vice Mayor — Justin Katz Commissioner — Mack McCray Commissioner — Christina L. Romelus Commissioner — Joe Casello ATTEST: Judith" A. Pyle, CMC City;'Clerk (City Seal) C:\Users\StanzioneT\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.IE5\VAGZE6PO\LOI_for_temporary_I ease space_-_Reso. doc VOTE YES NO Intelligent 1875 N.W. Corporate Boulevard Real Estate Suite 280 Solutions Boca Raton, FL 33431 avisonyoung.com February 27, 2018 Gary Roskin Vice President Phoenix Realty Services, Inc. 941A Clint Moore Road Boca Raton, FL 33487 Re: Letter of Intent — 3602 — 3606 Quantum Blvd, Boynton Beach, FL 33426 Dear Gary: On behalf of the City of Boynton Beach, we have been authorized to submit the following response to your email outlining terms dated February 15, 2018. PREMISES: 3602 — 3606 Quantum Boulevard Boynton Beach, Florida 33426 SUBTENANT: City of Boynton Beach TENANT: World Wide Ticket LANDLORD: Duke PGC at Quantum 1-9, LLC SQUARE FEET: Approximately 27,300 RSF of warehouse/office space. LEASE COMMENCEMENT: April 1, 2018 LEASE END: August 31, 2020 GROSS MONTHLY RENT: July 1, 2018 August 31, 2018 $24,501.75 September 1, 2018 August 31, 2019 $24,965.63 September 1, 2019 August 31, 2020 $25,453.37 Intelligent Real Estate Solutions SECURITY DEPOSIT Subtenant will replace Tenants Existing Security Deposit currently on deposit with the Landlord. RIGHT TO AUDIT: Within one hundred eighty (180) days after receipt of Landlord's statement of Operating Expenses, Subtenant shall have the right to audit such statement and hire an independent consultant on either a fee or contingency basis to review on behalf of Subtenant and to dispute any item or items that may be improperly included in the determination of the Landlord's cost for such given year and shall be reimbursed by Landlord for the costs of the audit if Operating Expenses are overstated by more than three percent (3%). EARLY OCCUPANCY AND ACCESS: Subtenant shall have the right to enter the Premises from and after the mutual execution of this Sublease to install furniture, fixtures and equipment and otherwise prepare the Premises for occupancy (collectively, the "Early Entry Activities") provided that such entry and installation work does not interfere with Tenant's vacating of the space. If Subtenant enters into possession of the Premises prior to the Commencement Date (or permits its contractors to enter the Premises prior to the Commencement Date) for the sole purposes of performing the Early Entry Activities, such early occupancy shall not affect the Commencement Date or incur any additional rental obligations. PARKING: Subtenant requires 2 per 1,000 RSF surface parking for the exclusive use of the Subtenant and its visitors at no charge throughout the Sublease Term and renewals or extensions, in close proximity to the Premises. Please illustrate the location of the parking spaces. SIGNAGE: Subtenant may place its name and logo on the building. Landlord shall place Subtenant's name in the building's lobby directory board. BUILDING SYSTEMS / HVAC: All Building Systems and HVAC shall be delivered in "Good Working' condition at Occupancy. INTERNET PROVIDERS: Please confirm that fiber is available to the Building. Also, note what Internet Providers service the Building. Intelligent Real Estate Solutions REMOVAL OF LEASEHOLD IMPROVEMENTS: AGENCY DISCLOSURE: TIME OF ACCEPTANCE The Subtenant shall not be obligated, financially or otherwise, to remove or to restore its leasehold improvements at the expiration of the Term, whether installed by the Subtenant or the Landlord on behalf of the Subtenant. The Subtenant may remove signage, trade fixtures and furniture at the termination of the Sublease and shall not be required to restore the Premises to their original condition (even if such improvements were installed by the Subtenant or the Landlord on behalf of the Subtenant). Pursuant to Florida Statutes, Ch. 475 regarding brokerage disclosure, Gary Roskin of Phoenix Realty Services, Inc. is representing the Tenant and Keith O'Donnell of Avison Young, Inc. represents the Subtenant. Phoenix Realty Services, Inc. represents the Tenant by exclusive agreement. A real estate commission equal to 6% of the aggregate gross lease consideration is to be paid by the Tenant, split equally between representing brokers, 50% paid upon execution of Sublease Agreement and 50% paid upon the Sublease Rent Commencement Date. The terms of this proposal are open for acceptance for a period of fourteen (14) days and are always subject to prior leasing. Intelligent Real Estate Solutions This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm's length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. Sincerely, Keith O'Donnell Principal Avison Young AGREED & ACCEPTED City of Boynton Beach APPROVED' S,TO FOOM: V CITY ATTORNEY AGREED & ACCEPTED Weldon, Williams & Lick, Inc owner of Worldwide Ticket & Label, Inc. Title 1875 N.W. Corporate BoulevIntelligentSuite 280Real EstateBoca Raton. FL 33431Solutions Kirk Nelson First Vice President CBRE, Inc. 5100 Town Center Circle, Suite 600 Boca Raton, FL 33486 Re: Final Letter of Intent — 2045 High Ridge Road, Boynton Beach, FL Dear Kirk: On behalf of the City of Boynton Beach, we have been authorized to submit the following response to your proposal dated February 7, 2018. PREMISES: 2045 High Ridge Road Boynton Beach, Florida 33426 SUBTENANT: City of Boynton Beach TENANT: Fantasy Chocolates, Inc. LANDLORD: Duke PGC at Quantum 1-9, LLC SQUARE FEET: Approximately 30,000 RSF of warehouse/office space. LEASE COMMENCEMENT: June 1, 2018 LEASE END: February 3, 2020 BASE RENT: $6.50 RSF ANNUAL ESCALATIONS: None CONCESSIONS: Subtenant shall have the last two (2) months of occupancy at no charge. OK OPERATING EXPENSES: In addition to the Base Rental rate, Tenant shall pay its pro -rata share of all customary and reasonable costs and expenses for operating, repairing and maintaining the Property and Building now estimated at $3.89 per square foot for 2018. The operating expenses include Real Estate Taxes, Insurance, Common Area Maintenance, Repairing and other miscellaneous charges. Trash and interior electric are to be the responsibility of the Tenant. TO AUDIT: Subtenant will have the rights detailed in the Master Lease DELIVERY OF SPACE: The space will be delivered in "as is" condition. Subtenant will be permitted to make any additional tenant improvements subject to Tenant and Landlord's review. Any improvements are to be at the expense of the Subtenant. EARLY OCCUPANCY AND ACCESS: Subtenant shall have the right to enter the Premises from and after the mutual execution of this Sublease to install furniture, fixtures and equipment and otherwise prepare the Premises for occupancy (collectively, the "Early Entry Activities") provided that such entry and installation work does not interfere with Tenants vacating the space. If Subtenant enters into possession of the Premises prior to the Commencement Date (or permits its contractors to enter the Premises prior to the Commencement Date) for the sole purposes of performing the Early Entry Activities, such early occupancy shall not affect the Commencement Date or incur any additional rental obligations. OK Deposit: One (1) month PARKING: Parking is detailed in the Master Lease. Parking is non-exclusive at the subject property. SIGNAGE: Subtenant may place its name and logo on the building. Ok, subject to Landlord and municipal restrictions and approval BUILDING SYSTEMS / HVAC: All Building Systems and HVAC shall be delivered in "Good Working" condition at Occupancy. INTERNET PROVIDERS: Current Tenant previously had AT&T Fiber but it is the Subtenant's responsibility to confirm availability and providers. REMOVAL OF LEASEHOLD The facility will be returned in the condition it was turned over to the IMPROVEMENTS: Subtenant at the expense of the Subtenant AGENCY DISCLOSURE: Pursuant to Florida Statutes, Ch. 475 regarding brokerage disclosure, Kirk Nelson of CBRE Inc. is representing the Tenant and Keith O'Donnell of Avison Young, Inc. represents the Subtenant. CBRE Inc. represents the Tenant by exclusive agreement. A real estate commission equal to 6% of the aggregate gross lease consideration is to be paid by the Tenant, split equally between representing brokers, 50% paid upon execution of Sublease Agreement and 50% paid upon the Sublease Rent Commencement Date. TIME OF ACCEPTANCE: The terms of this proposal are open for acceptance for a period of fourteen (14) days and are always subject to prior leasing. This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm's length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto. Sincerely; Keith O'Donnell Principal Avison Young AGREED & ACCEPTED J`T City f fioyntonBeach AGREED & ACCEPTED F qntasy Chocolates, Inc. Intelligent 1875 N.W. Corporate Boulevard Real Estate Suite 280 Solutions Boca Raton, FL 33431 avisonyoung.com February 27, 2018 Gordon Messinger Managing Director Cushman & Wakefield 333 SE 216 Ave., Suite 3900 Miami, FL 33131 Re: Letter of Intent — 3301 Quantum Blvd., Boynton Beach, FL Dear Gordon: BEST MANAGED COMPANIES On behalf of the City of Boynton Beach, we have been authorized to submit the following response to your proposal dated December 4, 2017. PROPERTY: 3301 Quantum Blvd, Boynton Beach, Florida 33426 LANDLORD: FH Quantum, LLC TENANT: City of Boynton Beach PREMISES: Ground Floor - Estimated to be +/- 23,000 RSF LEASE COMMENCEMENT Ninety (90) Days from lease execution which shall be no later than July 1, DATE: 2018. EARLY OCCUPANCY AND ACCESS: Tenant shall have the right to enter the Premises from and after the mutual execution of this Lease to install furniture, fixtures and equipment and otherwise prepare the Premises for occupancy (collectively, the "Early Entry Activities") provided that such entry and installation work does not interfere with Landlord's completion of Landlord's Work. If Tenant enters into possession of the Premises prior to the Commencement Date (or permits its contractors to enter the Premises prior to the Commencement Date) for the sole purposes of performing the Early Entry Activities, such early occupancy shall not affect the Commencement Date or incur any additional rental obligations. LEASE TERM: 24 Months from Lease Commencement BASE RENTAL RATE: $16.00 PSF Triple Net Tenant shall be responsible for janitorial and electric within the Premises. Intelligent Real Estate Solutions OPERATING EXPENSES: In addition to the Base Rental Rate, Tenant shall pay its prorata share of operating expenses, insurance and real estate taxes ("Operating Expenses") which are estimated to be $6.00 per rentable square foot. RIGHT TO AUDIT: Within one hundred eighty (180) days after receipt of Landlord's statement of Operating Expenses, Tenant shall have the right to audit such statement and hire an independent consultant on either a fee or contingency basis to review on behalf of Tenant and to dispute any item or items that may be improperly included in the determination of the Landlord's cost for such given year and shall be reimbursed by Landlord for the costs of the audit if Operating Expenses are overstated by more than five percent (5%). PREPAID RENT: Upon lease execution, Tenant shall pay the Landlord an amount equal to one (1) month's rental payment, which amount shall be applied toward the first month's rental obligation. SECURITY DEPOSIT: N/A PARKING: Landlord shall provide unreserved parking spaces equaling 4 per 1,000 RSF in the surface parking lot surrounding the Property for the exclusive use of the Tenant and its visitors at no charge throughout the Initial Lease Term and renewals or extensions. Within the 4 per 1000 RSF parking Landlord will provide Tenant with a mutually agreed upon amount of reserved parking in a mutually agreed upon location parking for the general public. SIGNAGE: Tenant may place its name and logo on the building. Landlord shall place Tenant's name in the building's lobby directory board. LANDLORD'S WORK: Landlord shall show evidence of roof repair satisfactory to guarantee Tenants safe and healthy occupancy. HVAC units shall be delivered in good working condition. In addition to Landlord's Work, Landlord shall provide a cash allowance of $2.00 per RSF to Tenant with the only restriction that it cannot be applied towards free rent. SPACE PLANNING / ARCHITECTURAL SERVICES: Landlord agrees to pay for Tenant's architect to prepare a test fit or review of the premises which shall be deducted from the cash allowance of $2.00 per RSF to the Tenant. Intelligent Real Estate Solutions RENEWAL OPTION BUILDING SYSTEMS / HVAC: Two 6 -month options with 3% annual increases. The 1St option shall be with twelve (12) months written notice to Landlord. The 211 option shall be with three (3) months written notice to Landlord. All Building Systems and HVAC shall be delivered in "Good Working" condition at Occupancy and, furthermore, Landlord shall warrant same throughout the term of the Lease and any extensions, at Landlord's cost. Landlord agrees that it shall provide Tenant with electricity for lighting and operation of typical office equipment, heat and air-conditioning for reasonable work conditions and any other services provided under their terms of the Lease during Business Hours, at no additional charge. The Building shall be open from 8:00 am to 6:00 pm Monday through Friday and 8:00 am to 1:00 pm Saturday, exclusive of holidays. Tenant shall have access to the Premises 24 hours per day, 7 days per week. The Building is not currently separately metered and the HVAC is included in the CAM. Landlord will provide the hourly cost for the overtime HVAC at a set dollar amount of $35.00 per hour. However Landlord will work with the Tenant to provide separately metered electric and HVAC controls if feasible. BUILDING SECURITY SYSTEM: There is currently key fab system to enter the Tenant's space. The City of Boynton Beach can work with ownership install their own system. With respect to Life Safety, the Building has fire sprinklers, emergency lighting, illuminated exit signs, strobe light alarms, fire pull boxes and fire extinguishers. INTERNET PROVIDERS: Please confirm that fiber is available to the Building. Also, note what Internet Providers service the Building. AT&T Fiber LANDLORD ACCESS TO PREMISES: Landlord shall have access to the Premises twelve (12) months prior to lease expiration for the purposes of marketing the Premises to future tenants. REMOVAL OF LEASEHOLD Upon expiration Tenant shall surrender the Premises in the same condition IMPROVEMENTS: as originally occupied (including the initial tenant improvements), less normal wear and tear and the removal of its furniture, fixtures and equipment along with any interior and exterior signage. Intelligent Real Estate Solutions BROKERAGE: Tenant and Landlord acknowledge that neither has dealt with any real estate broker or agent in connection with the property other than Avison Young, which represents the Tenant, and Cushman & Wakefield of Florida, LLC, which represents the Landlord. This proposal is not intended nor shall it be deemed or interpreted to legally bind either party. Rather, this letter constitutes the agreement of Tenant and Landlord, subject to the termination rights set forth, to conduct further negotiations concerning a written lease agreement or amendment between Tenant and Landlord. No binding obligations of Tenant or Landlord shall arise unless and until such time as a binding lease agreement or amendment is negotiated and executed by all parties. Furthermore, Tenant and Landlord are free to negotiate with other parties simultaneously or at any other time. Tenant and Landlord agree to negotiate in good faith. Either Tenant or Landlord may for any reason and without cause, terminate negotiations or this letter at any time by serving written or verba! notice of such termination to the other party. Neither party may claim any legal rights or damages against the other by reason of submission of this request for proposal or by either party taking any action in reliance thereon. Sincerely, Keith O'Donnell Principal Avison Young AGREED & ACCEPTED AGREED & ACCEPTED �, re City of Boynton Beach FH Quantum, LLC APPROVED FO{: CITY ATTORNEY Intelligent Real Estate Solutions February 27, 2018 Gordon Messinger Managing Director Cushman & Wakefield 333 SE 2"6 Ave., Suite 3900 Miami, FL 33131 Re: Letter of Intent — 3301 Quantum Blvd., Boynton Beach, FL Dear Gordon: 1875 N.W. Corporate Boulevard Suite 280 Boca Raton, FL 33431 avisonyoung.com BEST MANAGED COMPANIES On behalf of the City of Boynton Beach, we have been authorized to submit the following response to your proposal dated December 4, 2017. PROPERTY: 3301 Quantum Blvd. Boynton Beach, Florida 33426 LANDLORD: FH Quantum, LLC TENANT: City of Boynton Beach PREMISES: Ground Floor - Estimated to be +/- 23,000 RSF LEASE COMMENCEMENT Ninety (90) Days from lease execution which shall be no later than July 1, DATE: 2018. EARLY OCCUPANCY AND ACCESS: Tenant shall have the right to enter the Premises from and after the mutual execution of this Lease to install furniture, fixtures and equipment and otherwise prepare the Premises for occupancy (collectively, the "Early Entry Activities") provided that such entry and installation work does not interfere with Landlord's completion of Landlord's Work. If Tenant enters into possession of the Premises prior to the Commencement Date (or permits its contractors to enter the Premises prior to the Commencement Date) for the sole purposes of performing the Early Entry Activities, such early occupancy shall not affect the Commencement Date or incur any additional rental obligations. LEASE TERM: 24 Months from Lease Commencement BASE RENTAL RATE: $16.00 PSF Triple Net Tenant shall be responsible for janitorial and electric within the Premises. Intelligent Real Estate Solutions OPERATING EXPENSES: In addition to the Base Rental Rate, Tenant shall pay its prorata share of operating expenses, insurance and real estate taxes ("Operating Expenses") which are estimated to be $6.00 per rentable square foot. RIGHT TO AUDIT: Within one hundred eighty (180) days after receipt of Landlord's statement of Operating Expenses, Tenant shall have the right to audit such statement and hire an independent consultant on either a fee or contingency basis to review on behalf of Tenant and to dispute any item or items that may be improperly included in the determination of the Landlord's cost for such given year and shall be reimbursed by Landlord for the costs of the audit if Operating Expenses are overstated by more than five percent (5%). PREPAID RENT: Upon lease execution, Tenant shall pay the Landlord an amount equal to one (1) month's rental payment, which amount shall be applied toward the first month's rental obligation.. SECURITY DEPOSIT: N/A PARKING: Landlord shall provide unreserved parking spaces equaling 4 per 1,000 RSF in the surface parking lot surrounding the Property for the exclusive use of the Tenant and its visitors at no charge throughout the Initial Lease Term and renewals or extensions. Within the 4 per 1000 RSF parking Landlord will provide Tenant with a mutually agreed upon amount of reserved parking in a mutually agreed upon location parking for the general public. SIGNAGE: Tenant may place its name and logo on the building. Landlord shall place Tenant's name in the building's lobby directory board. LANDLORD'S WORK: Landlord shall show evidence of roof repair satisfactory to guarantee Tenants safe and healthy occupancy. HVAC units shall be delivered in good working condition. In addition to Landlord's Work, Landlord shall provide a cash allowance of $2.00 per RSF to Tenant with the only restriction that it cannot be applied towards free rent. SPACE PLANNING / ARCHITECTURAL SERVICES: Landlord agrees to pay for Tenant's architect to prepare a test fit or review of the premises which shall be deducted from the cash allowance of $2.00 per RSF to the Tenant. Intelligent Real Estate Solutions RENEWAL OPTION: BUILDING SYSTEMS/ HVAC: Two 6 -month options with 3% annual increases. The 1s' option shall be with twelve (12) months written notice to Landlord. The 2 r option shall be with three (3) months written notice to Landlord. All Building Systems and HVAC shall be delivered in "Good Working" condition at Occupancy and, furthermore, Landlord shall warrant same throughout the term of the Lease and any extensions, at Landlord's cost. Landlord agrees that it shall provide Tenant with electricity for lighting and operation of typical office equipment, heat and air-conditioning for reasonable work conditions and any other services provided under their terms of the Lease during Business Hours, at no additional charge. The Building shall be open from 8:00 am to 6:00 pm Monday through Friday and 8:00 am to 1:00 pm Saturday, exclusive of holidays. Tenant shall have access to the Premises 24 hours per day, 7 days per week. The Building is not currently separately -petered and the HVAC is included in the CAM. Landlord will provide the hourly cost for the overtime HVAC at a set dollar amount of $35.00 per hour. However Landlord will work with the Tenant to provide separately metered electric and HVAC controls if feasible. BUILDING SECURITY SYSTEM: There is currently key fab system to enter the Tenant's space. The City of Boynton Beach can work with ownership install their own system. With respect to Life Safety, the Building has fire sprinklers, emergency lighting, illuminated exit signs, strobe light alarms, fire pull boxes and fire extinguishers. INTERNET PROVIDERS: Please confirm that fiber is available to the Building. Also, note what Internet Providers service the Building. AT&T Fiber LANDLORD ACCESS TO PREMISES: Landlord shall have access to the Premises twelve (12) months prior to lease expiration for the purposes of marketing the Premises to future tenants. REMOVAL OF LEASEHOLD Upon expiration Tenant shall surrender the Premises in the same condition IMPROVEMENTS: as originally occupied (including the initial tenant improvements), less normal wear and tear and the removal of its furniture, fixtures and equipment along with any interior and exterior signage. Intelligent Real Estate Solutions BROKERAGE: Tenant and Landlord acknowledge that neither has dealt with any real estate broker or agent in connection with the property other than Avison Young, which represents the Tenant, and Cushman & Wakefield of Florida, LLC, which represents the Landlord. This proposal is not intended nor shall it be deemed or interpreted to legally bind either party. Rather, this letter constitutes the agreement of Tenant and Landlord, subject to the termination rights set forth, to conduct further negotiations concerning a written lease agreement or amendment between Tenant and Landlord. No binding obligations of Tenant or Landlord shall arise unless and until such time as a binding lease agreement or amendment is negotiated and executed by all parties. Furthermore, Tenant and Landlord are free to negotiate with other parties simultaneously or at any other time. Tenant and Landlord agree to negotiate in good faith. Either Tenant or Landlord may for any reason and without cause, terminate negotiations or this letter at any time by serving written or verbal notice of such termination to the other party. Neither party may ciairn any legal rights or damages against the other by reason of submission of this request for proposal or by either party taking any action in reliance thereon. Sincerely, Keith O'Donnell Principal Avison Young AGREED & ACCEPTED AGREED & ACCEPTED a __1 2 (� City of Boynton Belch FH Qu tum, m