Item Coversheet

Redevelopment Agency - RDA  1.




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:April  22, 2020
 

9:15 a.m.

SUBJECT:

A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 1 TO THE ROOFTOP LEASE AGREEMENT, DATED SEPTEMBER 9, 2015, BETWEEN THE RDA (LANDLORD) AND CROWN CASTLE FIBER, LLC (CROWN CASTLE), AS SUCCESSOR BY MERGER TO CROWN CASTLE NG EAST LLC, FOR THE USE OF APPROXIMATELY 3,630 SQUARE FEET ON THE ROOFTOP OF THE PARKING GARAGE (LEASED PREMISES) LOCATED AT 1550 COLLINS AVENUE (PROPERTY) FOR THE OPERATION OF TELECOMMUNICATIONS EQUIPMENT; SAID AMENDMENT, IN MATERIAL PART, (1) APPROVING THE INSTALLATION OF ADDITIONAL FIBER (UPGRADE) ON THE PROPERTY, TO BE CONNECTED TO CROWN’S EQUIPMENT ON THE LEASED PREMISES; (2) IDENTIFYING THE LOCATION OF THE NEW IMPROVEMENTS ON THE PROPERTY; (3) INCREASING THE RENT PAYMENT UNDER THE AGREEMENT BY $425 PER MONTH, TO A TOTAL OF $4,927.04 PER MONTH; (4) ACKNOWLEDGING THE TRANSFER OF TENANT’S INTEREST IN THE AGREEMENT TO CROWN CASTLE; AND (5) UPDATING OTHER MISCELLANEOUS PROVISIONS OF THE AGREEMENT; AND FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR AND SECRETARY TO EXECUTE THE FINAL AMENDMENT.


RECOMMENDATION

The Administration recommends adopting the Resolution.

BACKGROUND/HISTORY

On September 9, 2015, the Miami Beach Redevelopment Agency (RDA) and Crown Castle NG East LLC (Original Tenant), executed a Rooftop Lease Agreement (“Agreement”), granting Original Tenant the right to utilize 3,630 square feet of rooftop space (“Leased Premises”) of a City parking garage with ground floor retail spaces, located at 1550 Collins Avenue (“Property”), for the construction, operation and maintenance of certain telecommunications facilities.  Pursuant to the terms of the Agreement, Crown Castle currently pays the RDA $54,024.48 per year ($4,502.04.00 per month) for the use of the Leased Premises to install and operate its telecommunication facilities (“Facilities”), which include existing fiber installations, located in a portion of the underground areas of the Property, which fiber connects to the Facilities located on the Leased Premises.

ANALYSIS

In order to upgrade its Facilities to accommodate 5G technology, Crown Castle has requested approval to install additional conduits for fiber optics and electrical cabling, to be installed underground, as well as the use of additional spaces (i.e. vertical and horizontal risers and conduits) within the Property, as depicted in Exhibit “B-1” to Amendment No. 1 (attached hereto as Attachment “A”).

 

In consideration for this additional use, during the term of the Agreement, Crown Castle will pay the RDA additional rent, in the amount of $425 per month, increasing the total current monthly rent to $4,927.04 per month, plus applicable sales tax.

CONCLUSION

The additional access and use provided to Crown Castle will satisfy the needs of Crown Castle to upgrade their wireless communications facilities within the City of Miami Beach and provide current technology to its customers.  The Administration recommends that the Chairperson and Members of the Miami Beach Redevelopment Agency approve, in substantial form, Amendment No. 1 to the Rooftop Lease Agreement, subject to final negotiation by the Executive Director and review by the RDA’s attorney.

Applicable Area

Citywide
Is this a Resident Right to Know item? Does this item utilize G.O. Bond Funds?
No No 

Strategic Connection

Organizational Innovation - Maximize the use of innovative technology.
Legislative Tracking
Property Management

ATTACHMENTS:
Description
Resolution