R21-1561
RESOLUTION NO. R21-156
2 A RESOLUTION OF THE CITY OF BOYNTON BEACH, FLORIDA,
3 APPROVING AND AUTHORIZING THE MAYOR TO SIGN A NEW
4 LEASE AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND
5 LUTHERAN SERVICES FLORIDA, INC. FOR PROPERTY LOCATED AT
6 909 NE 3RD STREET; AND PROVIDING AN EFFECTIVE DATE.
7 WHEREAS, on 7/6/21, the City Commission received an update on the status of a Lease
8 Agreement between the City of Boynton Beach and Lutheran Services Florida, Inc. for the
9 property located at 909 NE 3rd Street; and
10 WHEREAS, the City and Palm Beach County entered into a ten year Lease Agreement
11 dated February 7, 2012 (R2012-0242) for the use of the Leased Premises; and
12 WHEREAS, Palm Beach County assigned the Original Lease to Lutheran Services
13 Florida, Inc., and the City approved the Consent to Assignment and Amendment to Lease on
14 April 15, 2014; and
15 WHEREAS, the City desires to lease the Leased Premises of the building to Lutheran
16 Services Florida who desires to lease the Leased Premises from the City for the term, at the
17 rental and upon the covenants, conditions and provisions set forth in the Lease Agreement;
18 and
19 WHEREAS, the City Commission of the City of Boynton Beach, Florida, upon the
20 recommendation of staff, deems it to be in the best interests of the City residents to approve
21 and authorize the Mayor to sign the Lease Agreement between the City of Boynton Beach and
22 Lutheran Services Florida, Inc. for property located at 909 NE 3rd Street.
23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF
24 BOYNTON BEACH, FLORIDA, THAT:
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25 Section 1. Each Whereas clause set forth above is true and correct and
26 incorporated herein by this reference.
27 Section 2. The City Commission of the City of Boynton Beach, Florida does hereby
28 approve and authorize the Mayor to sign the Lease Agreement between the City of Boynton
29 Beach and Lutheran Services Florida, Inc. for property located at 909 NE 3rd Street. A copy of
30 the Lease Agreement is attached hereto as Exhibit "A".
31 Section 3. That this Resolution shall become effective immediately upon passage.
32 PASSED AND ADOPTED this 16th day of November, 2021.
33 CITY OF BOYNTON BEACH, FLORIDA
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ATTEST:
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C tal Gibson, MMC
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City Clerk
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(Corporate Seal)
YES NO
Mayor — Steven B. Grant
Vice Mayor —Woodrow L. Hay
Commissioner —Justin Katz
Commissioner —Christina L. Romelus ✓
Commissioner — Ty Penserga
S:\CA\RESO\Agreements\L.ease Agreement With Lutheran Services Florida - Reso.Docx
VOTE 'S_ -y
COMMERCIAL LEASE AGREEMENT
This Commercial Lease Agreement ("Lease Agreement") is made and effective this VS}day of
202x, by and between CITY OF BOYNTON BEACH, 100 East Ocean Avenue,
Boynton Beadh, Florida 33435 ("Landlord") and LUTHERAN SERVICES FLORIDA, INC, a
Florida Non-Profit Corporation ("Tenant").
WITNESSETH:
WHEREAS, Landlord is the owner of land and improvements commonly known and
numbered as 909 N.E. 3rd Street, Boynton Beach, Florida, as further described in Exhibit A
attached hereto and incorporated herein ("Leased Premises"); and
WHEREAS, Landlord and Palm Beach County entered into a ten year Lease Agreement
dated February 7, 2012 (R2012-0242) for the use of the Leased Premises as defined herein
("Original Lease"); and
WHEREAS, Palm Beach County assigned the Original Lease to the Tenant and the
Landlord approved the Consent to Assignment and Amendment to Lease on April 15, 2014; and
WHEREAS, Landlord desires to lease the Leased Premises of the building to Tenant and
Tenant desires to lease the Leased Premises from Landlord for the term, at the rental and upon
the covenants, conditions and provisions herein set forth.
WHEREAS, the Landlord and Tenant agree that the Original Lease and Consent to
Assignment and Amendment to Lease are hereby replaced by this Lease Agreement; and
NOW THEREFORE, in consideration of the mutual promises herein, contained and
other good and valuable consideration, it is agreed:
1. Term.
The term of the Lease shall be effective upon execution of this Lease by both Parties and shall
continue for a period of eighteen (18) months ("Term"). This Lease may be extended for two
additional ninety (90) day extensions, upon mutual agreement of both Parties.
2. Rental.
Tenant shall pay to Landlord during the Term, or any extensions thereof, the rental fee of$1.00
per month. The payment of $1.00 shall be due in advance on or before the first day of each
month during the lease term. Payment to be made to Landlord at Boynton Beach City Hall,
Finance Department, 100 East Ocean Avenue, Boynton Beach, FL 33435.
3. Use
00465493.1 306-9001821)
Tenant shall use the Lease Premises to provide childhood education to children who otherwise
might have been left behind via the head start and early head start program ("Programs")
4. Sublease and Assignment.
This Lease is not assignable and Tenant may not sublease the Leased Premises
5. Repairs.
During the Lease term, Tenant shall make, at Tenant's expense, all necessary repairs to the
Leased Premises except those which are the responsibility of Landlord.
Landlord is responsible for Fencing, Parking Lot, Potable Water and Sanitary Sewer Systems,
Garbage and Trash Removal, Telephone and Cable Wiring, and Hurricane Shutters.
Notwithstanding anything contained herein to the contrary, Landlord shall have access to the
Leased Premises when Landlord, in its sole discretion, determines that it is time to install the
hurricane shutters. Landlord will endeavor to provide Tenant with reasonable notice of the
installation schedule so that Tenant can prepare to cease its operations on the Leased Premises.
Tenant acknowledges that Landlord's installation of the hurricane shutters may occur up to 48
hours prior to the anticipated arrival of a hurricane and that Landlord may not have use of the
Leased Premises while the shutters are in place.
6. Alterations and Improvements.
Tenant, at Tenant's expense, shall have the right following Landlord's consent to remodel,
redecorate, and make additions, improvements and replacements of and to all or any part of the
Leased Premises from time to time as Tenant may deem desirable, provided the same are made
in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to
place and install personal property, specialty lighting, trade fixtures, equipment and other
temporary installations in and upon the Leased Premises, and fasten the same to the premises.
7. Property Taxes.
A. Although the parties anticipate that the property will not be subject to real property taxes,
in the event real property taxes are assessed, Tenant shall pay to Landlord a proportionate share
of the real property taxes, if any, based on the ratio of the square footage of the Lease Premises
to the total square footage of the property.
B. Tenant shall be responsible for paying all personal property taxes with respect to Tenant's
personal property at the Leased Premises, if applicable.
8. Insurance.
Tenant shall maintain, at its sole expense, in full force and effect at all times during the life of
this Lease or the performance of work hereunder, insurance limits, coverages or endorsements
100465493.1 306-9001821
required herein. Tenant hereby agrees the requirements contained herein, as well as Landlord's
review or acceptance of insurance, is not intended to and shall not in any manner limit nor
qualify Tenant's liabilities and obligations under this Lease Agreement.
A. Tenant shall maintain: Commercial General Liability with limits of liability not less
than $1,000,000 Each Occurrence including coverage for, but not limited to,
Premises/Operations, Products/Completed Operations, Contractual Liability,
Personal/Advertising Injury and Cross Liability; Fire Legal liability with a limit not
less than $100,000; and Medical Payments (when available) with a limit not less than
$5,000. Tenant shall ensure such coverage is provided on a primary basis.
B. Tenant shall maintain Business Automobile Liability with limits of liability not less
than $500,000 Each Occurrence for owned,non-owned, and hired automobiles. In the
event Tenant has no owned automobiles, this requirement shall be to maintain only
Hired&Non-Owned Auto Liability. This amended coverage may be satisfied by way
of endorsement to the Commercial General Liability, or separate Business Auto
Liability. Tenant shall ensure such coverage is provided on a primary basis.
C. Tenant shall maintain Workers' Compensation & Employers Liability in accordance
with Chapter 440 Florida Statutes and applicable Federal Acts. Tenant shall ensure
such coverage is provided on a primary basis.
D. Tenant shall at all times during the Term hereof, and at its sole cost and expense,
maintain in full force and effect policies of insurance covering all Alterations to the
Premises made by or on behalf of Tenant as well as Tenant's fixtures, inventory and
equipment located on the Premises, in an amount not less than one hundred percent
(100%) of its full replacement cost, providing protection with "All-Perils" coverage
as provided by, the "Special-Cause of Loss Form" together with, but not limited to,
insurance against wind and hail, sprinkler leakage damage, vandalism, theft and
malicious mischief. The proceeds of such insurance, so long as this Lease remains in
effect, shall be used to repair or replace the Premises, Alterations, fixtures, inventory
and equipment so insured. All property, including without limitation, stock,
inventory, fixtures and equipment belonging to Tenant or any occupant of the
Premises• shall be there at the risk of Tenant or such other person only, and Landlord
shall not be liable for damage thereto or theft or misappropriation thereof.
Additionally, the Tenant shall maintain Business Interruption with Extra Expense
insurance providing coverage for loss of net income and all continuing expenses at a
minimum limit appropriate to cover the maximum period of restoration or
interruption of the Tenant. Tenant shall deliver to the Landlord certificates of such
fire insurance policies which shall contain a clause requiring the insurer to give the
Landlord thirty(30) days prior notice of cancellation of such policies.
E. Tenant shall not keep, use, sell or offer for sale in or upon the Premises any article
which may be prohibited by any condition,provision, limitation, or Special -Cause of
Loss Form of the Fire and Allied Lines insurance policy. Tenant shall pay any
increase in premiums for Fire and Allied Lines coverage insurance that may be
charged during the Term of this Lease on the amount of such insurance which may be
carried by Landlord on the Premises or the Premises resulting from the type of
merchandise sold or rented by Tenant in the Premises or resulting from Tenant's use
of the Premises, whether or not Landlord has consented to the same. Tenant shall
500465493.1 306-9001821)
promptly make, at Tenant's cost and expense, all repairs, alterations, changes and/or
improvements to Tenant's fixtures and equipment in the Premises required by the
company issuing Landlord's fire and allied lines insurance so as to avoid the
cancellation of, or the increase in premiums on said insurance.
F. Tenant shall cause each liability insurance policy required to be maintained by Tenant
to be endorsed to add the Landlord as an Additional Insured on, except for Workers'
Compensation and Business Auto Liability. The CG 2011 Additional Insured -
Managers or Lessors of Premises or CG 2026 Additional Insured - Designated Person
or Organization endorsements, or their equivalent, shall be used to endorse the
Commercial General Liability policy. The standard Additional Insured endorsement
offered by the insurer shall be used to endorse the other policies, when required.
Tenant shall ensure the Additional Insured endorsements provide coverage on a
primary basis. The Additional Insured endorsement shall read "City of Boynton
Beach, a municipal corporation organized and operating pursuant to the laws of the
State of Florida, its Officers Employees and Agents", 100 E Ocean Avenue Boynton
Beach, FL 33425.
G. Tenant shall provide the Landlord with a certificate of insurance evidencing limits,
coverages and endorsements required herein. The certificate of insurance shall
include a minimum thirty (30) day endeavor to notify due to cancellation or non-
renewal of coverage. In the event coverage is cancelled or not renewed during the life
of this Lease, Tenant shall furnish thirty (30) days prior to, but in no case later than
the expiration of such insurance, a new certificate of insurance evidencing
replacement coverage. Should Tenant fail to maintain the insurance required herein,
the Landlord shall have the right, but not the obligation, to purchase or maintain said
insurance, and Tenant shall promptly pay as Additional Rent, upon demand from
Landlord, all premiums and expenses incurred by Landlord.
H. Tenant hereby agrees to a Waiver of Subrogation for each required policy. When
required by the insurer or should a policy condition not allow a pre-loss Lease to
waive subrogation without an endorsement, Tenant shall notify its insurer and request
the policy be endorsed with a Waiver of Transfer of Rights of Recovery Against
Others, or its equivalent. This Waiver of Subrogation requirement shall not apply to
any policy, which includes a condition prohibiting such an endorsement, or voiding
coverage should Tenant enter into such a Lease on a pre-loss basis.
I. Tenant shall not keep, use, sell or offer for sale in or upon the Premises any article
which may be prohibited by any condition, provision or limitation of the property,
flood, or wind insurance policies. Tenant shall be responsible for all premiums,
including increases, for all insurance policies required by this Lease. All property,
flood or windstorm insurance proceeds as a result of a loss shall be made available for
use to promptly replace, repair or rebuild the buildings, betterments and
improvements, including those made by or on behalf of Tenant, in order to ensure• a
replacement cost settlement and avoid policy cancellation.
J. Tenant shall be fully and solely responsible for any deductible, coinsurance penalty,
or self-insured retention; including any losses, damages, or expenses not covered due
to an exhaustion of limits or failure to comply with the policy terms.
K. The Landlord's Risk Management shall have the right, but not the obligation, to
review, adjust, reject or accept insurance policies, limits, coverages, or endorsements
00465493.1 306-90018211
throughout the life of this Lease. The Landlord reserves the right, but not the
obligation, to review and reject any insurer providing coverage because of poor
financial condition or by way of illegal operation. The City shall provide Tenant
written notice of such action and Tenant shall agree to cure or comply with such
action within thirty(30) days receipt thereof.
L. The limits, coverages or endorsements identified herein primarily transfer risk and
minimize liability for the Landlord, and Tenant agrees not to rely upon such
requirements when assessing risk or determining appropriate types or limits of
coverage to protect Tenant against any loss exposures, whether as a result of this
Lease or otherwise.
M. Excluding Landlord or its affiliates, when Tenant permits or schedules the use of the
Premises for a special event or outside persons/groups, Tenant shall require the
special event or outside person/group to maintain Commercial General Liability, as
described this Section with limits of liability not less than $1,000,000. Tenant shall
ensure that Landlord and Tenant are named as Additional Insured under such policy,
as described herein. Tenant shall obtain and, when requested by the Landlord, furnish
copies of certificates of insurance evidencing such coverage for the special event or
outside person/group.
9. Utilities.
Tenant shall pay all charges for water, sewer, gas, electricity, telephone and other services and
utilities used by Tenant on the Leased Premises during the term of this Lease. In the event that
any utility or service provided to the Leased Premises is not separately metered, Landlord shall
pay the amount due and separately invoice Tenant for Tenant's pro rata share of the charges.
Tenant shall pay such amounts within fifteen (15) days of invoice. Tenant acknowledges that the
Leased Premises are designed to provide standard office use electrical facilities and standard
office lighting. Tenant shall not use any equipment or devices that utilizes excessive electrical
energy or which may, in Landlord's reasonable opinion, overload the wiring or interfere with
electrical services to other tenants.
10. Signs.
Tenant shall have the right to place on the Leased Premises, at locations selected by Tenant, any
signs which are permitted by applicable zoning ordinances and private restrictions. Landlord
may refuse consent to any proposed signage that is in Landlord's sole discretion is deemed too
large, deceptive, unattractive or otherwise inconsistent with or inappropriate to the Leased
Premises or use of any other tenant. Landlord shall assist and cooperate with Tenant in obtaining
any necessary permission from governmental authorities or adjoining owners and occupants for
Tenant to place or construct the foregoing signs. Tenant shall repair all damage to the Leased
Premises resulting from the removal of signs installed by Tenant.
11. Entry.
00465493.1 306-90018211
Landlord shall have the right to enter upon the Leased Premises at reasonable hours to inspect
the same, provided Landlord shall not thereby unreasonably interfere with Tenant's business on
the Leased Premises.
12. Parking.
During the term of this Lease, Tenant shall have the use of the automobile parking area,
driveways, and footways, subject to rules and regulations for the use thereof as prescribed from
time to time by Landlord.
13. Damage and Destruction.
If the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire,
casualty or structural defects that the same cannot be used for Tenant's purposes, this Lease shall
be deemed terminated as of the date of such damage.
14. Default.
If default shall at any time be made by Tenant in the payment of rent when due to Landlord as
herein provided, and if said default shall continue for fifteen (15) days after written notice
thereof shall have been given to Tenant by Landlord, or if default shall be made in any of the
other covenants or conditions to be kept, observed and performed by Tenant, and such default
shall continue for thirty (30) days after notice thereof in writing to Tenant by Landlord without
correction thereof then having been commenced and thereafter diligently prosecuted, Landlord
may declare the term of this Lease ended and terminated by giving Tenant written notice of such
intention, and if possession of the Leased Premises is not surrendered, Landlord may reenter said
premises. Landlord shall have, in addition to the remedy above provided, any other right or
remedy available to Landlord on account of any Tenant default, either in law or equity. Landlord
shall use reasonable efforts to mitigate its damages.
15. Ouiet Possession.
Landlord covenants and warrants that upon performance by Tenant of its obligations hereunder,
Landlord will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and
uninterrupted possession of the Leased Premises during the term of this Lease.
16. Condemnation.
If any legally, constituted authority condemns the Building or such part thereof which shall make
the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes
possession, and Landlord and Tenant shall account for rental as of that date. Such termination
shall be without prejudice to the rights of either party to recover compensation from the
condemning authority for any loss or damage caused by the condemnation. Neither party shall
have any rights in or to any award made to the other by the condemning authority.
17. Notice.
(00465493.1306-9001821)
Any notice required or permitted under this Lease shall be deemed sufficiently given or served if
sent by United States certified mail, return receipt requested, addressed as follows:
Landlord to:
City of Boynton Beach
Attn: City Manager
100 East Ocean Avenue
Boynton Beach, FL 33435
Tenant to:
Lutheran Services Florida, Inc.
3627 West Waters Avenue
Tampa,Florida 33614
Landlord and Tenant shall each have the right from time to time to change the place notice is to
be given under this paragraph by written notice thereof to the other party.
18. Brokers.
Tenant represents that Tenant was not shown the Premises by any real estate broker or agent and
that Tenant has not otherwise engaged in, any activity which could form the basis for a claim for
real estate commission,brokerage fee, finder's fee or other similar charge, in connection with this
Lease.
19. Waiver.
No waiver of any default of Landlord or Tenant hereunder shall be implied from any omission to
take any action on account of such default if such default persists or is repeated, and no express
waiver shall affect any default other than the default specified in the express waiver and that only
for the time and to the extent therein stated. One or more waivers by Landlord or Tenant shall
not be construed as a waiver of a subsequent breach of the same covenant,term or condition.
20. Indemnification.
Tenant shall indemnify, defend and save harmless the Landlord from and against any and all
claims, suits, actions, damages and/or causes of action arising during the Term of this Lease
Agreement for any personal injury, loss of life, and/or damage to property sustained in or about
the Premises by reason, during,or as a result of the use and occupancy of the Leased Premises by
the Tenant, its agents, employees, licensees, invitees, any subtenant and the general public, and
from and against any orders,judgments, and/or decrees which may be entered thereon, and from
and against all costs, reasonable attorney's fees, expenses and liabilities incurred in and about the
defense of any such claim at trial or on appeal. In the event Landlord shall be made a party to
any litigation commenced against Tenant or by Tenant against any third party, then Tenant shall
protect and hold Landlord harmless and pay all costs and reasonable attorney's fees incurred by
Landlord in connection with such litigation, and any appeals thereof. Tenant recognizes the
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broad nature of this indemnification provision and specifically acknowledges that Landlord
would not have entered into this Lease Agreement without Tenant's agreement to indemnify
Landlord and further acknowledges the receipt of good and valuable separate consideration
provided by Landlord in support hereof in accordance with the laws of the State of Florida. This
provision shall survive expiration or termination of this Lease Agreement.
21. Headings.
The headings used in this Lease are for convenience of the parties only and shall not be
considered in interpreting the meaning of any provision of this Lease.
22. Successors.
The provisions of this Lease shall extend to and be binding upon Landlord and Tenant and their
respective legal representatives and successors.
23. Performance.
If there is a default with respect to any of Landlord's covenants, warranties or representations
under this Lease, and if the default continues more than fifteen (15) days after notice in writing
from Tenant to Landlord specifying the default, Tenant may, at its option and without affecting
any other remedy hereunder, cure such default and deduct the cost thereof from the next accruing
installment or installments of rent payable hereunder until Tenant shall have been fully
reimbursed for such expenditures, together with interest thereon at a rate equal to the lessor of
twelve percent (12%) per annum or the then highest lawful rate. If this Lease terminates prior to
Tenant's receiving full reimbursement, Landlord shall pay the unreimbursed balance plus accrued
interest to Tenant on demand.
24. Compliance with Law.
Tenant shall comply with all laws, orders, ordinances and other public requirements now or
hereafter pertaining to Tenant's use of the Leased Premises. Landlord shall comply with all laws,
orders, ordinances and other public requirements now or hereafter affecting the Leased Premises.
25. Tenant's Covenants.
Tenant covenants that it is a 501(c)(3) entity and that it will maintain that status during the term
of this lease. On written request from the landlord, Tenant will promptly provide proof of and
execute affidavits attesting to that status.
26. Final Agreement.
This Agreement terminates and supersedes all prior understandings or agreements on the subject
matter hereof. This Agreement may be modified only by a further writing that is duly executed
by both parties.
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27. Governing Law and Venue.
This Agreement shall be governed, construed and interpreted by, through and under the Laws of
the State of Florida.
In the event of court action to enforce this lease, venue will be in Palm Beach County, Florida.
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year
first above written.
ATTEST: CITY OF BOYNTON BEACH, a municipal
corporat' n o Zate F 'da
Ai0„ By:
al G
C ibn,M
soMIC, Ci Clerk Steven Grant, Mayor
Appr. - d • o F.rm: ,spar°.
(SEAL) .0
O" of to- 1ty Attorney v (' o
STATE OF FLORIDA )
)ss:
COUNTY OF PALM BEACH )
The foregoing instrument was acknowledged before me this \Li day of 0Lc\L
202 ;by teven Grant, as Mayor of the City of Boynton Beach, for the City of Boynton Beach
who (4fare personally known to me or( )have produced Florida driver's licenses as
identification.
My Commission expires: 3 '45-.43 XC:44;,Notary Publi , State of Flori
Ta my L. Stanzione
Fue TAMMY L STANZIONE
40•••—•.(1.,pr Commission#GG 306158
' ; Expires March 25,2023 Printed Name of Notary Public
14.°F F'. Bonded TNv Budget Notary Stales
(00465493.1 306-9001821
LUTHERAN SERVICES FLORIDA, INC.,
a Floridan j,pr rporation
By: -
Print Name: Robert Bialas
Title: EVP
(CORPORATE SEAL)
STATE OF FLORIDA )
COUNTY OF i-hll .,rov
The foregoing instrument was acknowledged before me this �} day of V-Qbr, t4
202),by Robert ►3kc
er Ja5 as EV P of Lutheran Services Florida, Inc., a
Florida not-for-profit corporation,who( ) is personally known to me or'L.) has produced a
Florida driver's license as identification, on behalf of Lutheran Services Florida, Inc.
My commission Expires: 1Z-/q-?0 Z
Notary Public, State of Florida
A dks-/e e c- / re-E
Printed Name of Notary Public
;Iii4. ANAY CASTELLAR PEREZ
=• MY COMMISSION 8 HH 208171
-. M1,:41 EXPIRES:December 14,2025
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