The Miami Beach Redevelopment Agency (RDA), (Landlord) and Open Vision One, LLC (Tenant) are parties to a lease agreement dated January 13, 2023, pursuant to Resolution No. 673-2022, for the retail spaces at the Anchor Shops, located at 1560 Collins Avenue, Suites Nos. 3-4 (Premises) for a fine dining restaurant (Lease). The lease term is for nine (9) years and 364 days.

Upon execution of the Lease, the Tenant began renovation of the Premises to convert the former retail space to a new, fine dining venue at the Tenant’s sole cost and expense. The Premises is expected to remain closed during the renovation process until the summer of 2024.

Under the current Lease provisions, in the event the Tenant desires to use the exterior area adjacent to a portion of the interior Premises for outdoor seating (Concession Area), the Tenant shall be required to execute a separate Concession Agreement.  The square footage allowable shall be subject to approval by the Executive Director, as well as all other governmental City approvals (if necessary); with the additional square footage being subject to the current Minimum Base Rent rate, and applicable sales tax for the year implemented. The current Minimum Base Rent rate is $75.00 per square foot (PSF).

On December 14, 2022, the Chairperson and Members of the Miami Beach Redevelopment Agency adopted Resolution No. 680-2022 approving a lease agreement for the adjacent space located at 1560 Collins Avenue, Suite Nos. 1-2 with Collins 1560, LLC d/b/a Lime Tree Café. The lease agreement also allows for the use of the exterior area, adjacent to a portion of the interior Premises, and requires the tenant to execute a separate Concession Agreement, subject to the rental rate of $30.00 PSF. The rental rate is more in line with the cost of Sidewalk Café permits issued by the City’s Public Works Department at a fee of $32.00 PSF, which is comprised of Concession Area fee of $17.00 PSF and a Monitoring fee of $15.00 PSF.

The outdoor seating area is an essential component for restaurants.  The Tenant intends to execute the required Concession Agreement for this expanded area. At the time the Tenant’s Lease was drafted, Administration had not compared the City’s Café Permit Fees to the quoted rents for this Tenant’s Concession Area.  The Tenant is requesting an amendment to the lease to bring the concession fee from $75.00 PSF to $30.00 PSF (with 3% annual escalations), which is consistent with the neighboring tenant and the City’s Sidewalk Café Permit Fees of $32.00 PSF. Due to the timing of build-out of the Premises, the Concession Area will not be activated until the end of FY 2024. Therefore, this amendment will not have a fiscal impact to the City’s proposed FY 2024 budget.

In consideration of the foregoing, the Administration recommends a proposed Amendment to the Lease with Open Vision One, LLC and the RDA based on the terms and conditions set forth above.  All other terms and conditions set forth under the lease shall remain the same.