TO: Mayor and Commissioners
FROM: Tennille Decoste, Human Resources Director
THROUGH: Chief Neal de Jesus, Interim City Manager
DATE: January 24, 2017
Title
LEASE RENEWAL FOR PINEAPPLE GROVE PROFESSIONAL CENTER FOR THE EMPLOYEE HEALTH AND WELLNESS CENTER
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Recommended Action:
Recommendation
Motion to Approve the lease renewal for the Pineapple Grove Professional Center for the Employee Health and Wellness Center.
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Background:
Since 2010 the City has provided medical services at the City's Employee Health and Wellness Center for employees and dependents participating in one of City's Group Health Plans. Such services include initial care for minor ailments and injuries, employee physicals, blood draws, x-rays and generic prescription disbursement at no cost to the employee.
The attached lease agreement and addendum is between the City of Delray Beach and Pineapple Grove Holdings, LLC, for continued utilization of the site for the City's Employee Health and Wellness Center. The lease addendum terms are for a period of three (3) years, beginning March 2017 through February 2020.
The item before the Commission is to approve the lease agreement between the City of Delray Beach and Pineapple Grove Holdings, LLC for the continued occupancy of the medical facility located at 525 NW 3rd Avenue, Delray Beach, Florida. The Code of Ordinance, Chapter 36 only applies to the acquisition of good and or services.
The annual lease cost negotiated with the Lessor, Pineapple Grove Holding, LLC, reflects a zero percent increase in rent for months one (1) through (12), a two percent (2%) increase in rent beginning with month thirteen (13) and a four percent (4%) increase in rent beginning with month twenty-five (25). Additionally, the base rent has been reduced by four percent (4%), from the current $4,211.49 to $4,049.51. Overall, the new lease provides the City with a savings of $14,360 over the three year term of the le...
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