| | | | | | | |  | Committee Assignments - C4 A
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Jimmy L. Morales, City Manager | | | DATE: | October 28, 2020 | | | |
| | SUBJECT: | REFERRAL TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, TO DISCUSS A PROPOSED EXTENSION OF THE CITY’S EXISTING LEASE WITH 1 WASHINGTON AVENUE CORP, THE CITY’S LONG-TERM TENANT AND OPERATOR OF THE “SMITH & WOLLENSKY” RESTAURANT FACILITY AT SOUTH POINTE PARK, WITH THE FOREGOING SUBJECT TO INDEPENDENT THIRD-PARTY APPRAISALS OF THE LEASE AND NEGOTIATION OF THE LEASE AMENDMENT TERMS, INCLUDING PROPOSED TENANT IMPROVEMENTS, WHICH WOULD BE COMPLETED BY THE LESSEE, AT NO COST OR EXPENSE TO THE CITY. |
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| | | | | | | | BACKGROUND/HISTORY
| The City and 1 Washington Avenue Corp. (“Tenant”) are parties to a lease agreement dated February 8, 1985 for the Smith & Wollensky restaurant property in South Pointe Park (the “Lease”). The leased property consists of a two-story building measuring approximately 21,000 square feet.
In addition to the Lease, the City has also entered into a concession agreement with the Tenant, consisting of approximately 581 square feet, for certain outdoor seating located immediately south of the cutwalk. The City receives percentage rent under the Lease and the Concession Agreement.
The second and final renewal term under the Lease expires November 6, 2025. |
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| | | | | | | | ANALYSIS
| The Tenant has proposed that the City commence the process for negotiation of a Lease amendment, to extend the term of the Lease (and the concession agreement); upgrade and improve the restaurant facility (including any improvements required to obtain the 40 year certification of the facility); update the rental terms of the Lease, including base rent and percentage rent, at appraised fair market value; and negotiate other public benefits to the City. To this end, the Tenant has agreed to reimburse the City for the costs of conducting two independent appraisals of the Lease rent. |
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| | | | | | | | CONCLUSION
| This referral initiates the review process under Chapter 82 of the City Code with respect to the Lease of City-owned property. If the proposed transaction is approved by the City Commission, the lease amendment will require, and be subject to and contingent upon, voter referendum approval.
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| | | | | | | | Applicable Area
| | South Beach |
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| | | | | | | | | Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? | | Does this item utilize G.O. Bond Funds? | | | No | | No | |
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| | | | | | | | Legislative Tracking
Property Management |
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