Item Coversheet

NEW BUSINESS  22.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: March 22, 2024


SUBJECT:

A DISCUSSION REGARDING A PROPOSED AMENDED AND RESTATED LEASE AGREEMENT BETWEEN THE CITY AND RDA (COLLECTIVELY, LANDLORD) AND MOONLIGHTER FABLAB INC., (TENANT) FOR APPROXIMATELY 7,655 SQUARE FEET OF GROUND FLOOR RETAIL SPACE LOCATED AT 1661 PENNSYLVANIA AVENUE


HISTORY:

The City owns the Pennsylvania Avenue Garage Condominium, located at 1661 Pennsylvania Avenue, Miami Beach, Florida 33139, which includes Unit 1, a municipal garage (the “Penn Garage”), having approximately 560 parking spaces, and Unit 2, which includes Suites A-G, and has a total of approximately 7,655 square feet of ground floor retail space (the “Retail Space”).

 

On March 13, 2019, pursuant to Resolution No. 2019-30761, the City Commission and RDA (collectively, “Landlord”) approved a lease with Moonlighter Fablab, Inc. d/b/a Moonlighter Makerspace (“Moonlighter”) for use of the remaining 6,720 square feet of the Retail Space (Moonlighter Demised Premises), for the purpose of providing an innovative public space combining a Science, Technology, Engineering, Arts & Math (S.T.E.A.M) education center, co-working space, and digital fabrication lab . Moonlighter executed a lease (“Lease Agreement”) for an initial term of three (3) years with two (2) options of one (1) year each at the City’s option, for 6,720 square feet of the retail space. The term commenced on the date the City tendered possession of the premises.

 

On February 19, 2021, the Finance and Economic Resiliency Committee ("FERC") discussed expanding Moonlighter to the northeasterly 935 square feet area of the Retail Space, previously occupied by the MBCC Visitor Center. On April 21, 2021, the City Commission and RDA accepted the FERC’s recommendation, and pursuant to Resolution No. 2021-31687, approved Amendment No. 1 to the Lease Agreement to include the remaining 935 square foot area for a total 7,665 square feet of Retail Space.

 

On August 16, 2023, the Landlord and Tenant exercised the First Renewal Option commencing on May 1, 2024, and ending on April 30, 2025. The Lease Agreement has one remaining renewal option for a period of one year which the Tenant intends on exercising. 

ANALYSIS:

At the request of Commissioner Fernandez this item is presented before the Finance and Economic Resiliency Committee for discussion. Moonlighter has expressed that in order to obtain and secure funding for additional programs a Lease of more than one year is necessary. Accordingly, the Tenant is requesting to extend the Lease Agreement for one (1) additional three (3) year term with one (1) option of one (1) year and 364 days in order to secure the funds needed to continue operating and expand programming.

 

The basic terms and conditions of the proposed Amended and Restated Lease Agreement are as follows:

 

Demised Premises:  Approximately 7,655 rentable square feet

 

Use:  S.T.E.A.M. education center, co-working space, and digital fabrication lab.

 

Term: One (1) Additional three (3) years with (1) option of one (1) year and 364 days.

 

Rent: One Dollar ($1.00) annually

 

Additional Rent: In addition to the Base Rent, Tenant shall also pay the Property Tax Payment, sales and use taxes.

 

Maintenance: Tenant shall be solely responsible for the operation, maintenance and repair of the Demised Premises; Tenant shall maintain all fixtures and appurtenances, interior walls, windows and doors; the City maintain the exterior structure, including roof, exterior plumbing, exterior painting an A/C units shared by more than one tenant.

 

Utilities/Insurance: The City pays for utilities (electricity and water and sewer expenses). The City pays for insurance costs; the Tenant unconditionally agrees to reimburse the City for any increase in the costs associated with the Tenant's occupancy.

 

Termination Option: The City reserves the right, through its City Manager, to terminate the Lease Agreement, at any time, without cause and without liability to the City, upon providing the Tenant with ninety (90) days prior written notice.

 

Moonlighter has proposed to expand their existing programs the public benefits initiatives as outlined below and included in Exhibit A attached hereto.

 

STEAM Education

Supporting Science, Technology, Engineering, Arts, and Mathematics education to students throughout Miami Beach. 

 

  • 1 Free field trip for up to 300 students from the following public schools in Miami Beach:

·        North Beach Elementary

·        South Pointe Elementary

·        Biscayne Elementary

·        Treasure Island Elementary

·        Fienberg/Fisher K-8 Center

·        Nautilus Middle

·        Miami Beach Senior High

 

  •  20% off any additional field trips for the above listed public school in Miami Beach.

 

  • 10% off all Moonlighter FabLab youth S.T.E.A.M. programming to all Miami Beach residents/students.

 

  • Free professional development workshops for up to 25 Miami Beach teachers and recreation staff per year.

 

  • Annual Internships for MB High School Students. Up to 5 Students in Spring and up to 5 Students in Fall semester each year. Internship provides Advanced Manufacturing S.T.E.A.M Basics Certification.

 

Miami Beach Resident Discounts

  • 10% off Moonlighter Memberships for Miami Beach residents.

 

  • Community Workshops: Our workshops teach the basic and safety use of various advanced manufacturing equipment, hand tools, and design software available in the Moonlighter FabLab Miami Beach | Community Benefits 3 lab. All Miami Beach residents will have an exclusive discount (with Photo ID confirming MB residence) to all community workshops. 10% off maker workshops for Miami Beach residents.

 

Venue Waiver

  • Partner with Miami Beach Chamber of Commerce to provide free use of space for business development workshops, networking events, or economic development events up to four events annually.

 

  • Up to 4 venue waivers per year: Exhibition space can be granted to civic, arts and cultural, and educational organizations for exhibitions, fundraisers, workshops, and events that support the advancement of the mission.

 

 

The following benefits are offered contingent upon success of additional fundraising efforts:

S.T.E.A.M. Education

  •  Scholarships for up to 50 needs-based students to attend Summer S.T.E.A.M. Camps at Moonlighter

 

  • Scholarships for after-school sessions for low income/needs-based Fienberg/Fisher + Biscayne Elementary students with transportation included from the school.

 

  • Paid Summer internship programs for MB High School students.

 

  • On-Site S.T.E.A.M. programs at Miami Beach Schools subject to availability of necessary on-site equipment.

 

Urban Placemaking / Arts Activations

10% off design and fabrication services for civic or arts organizations. Partnering with local Miami Beach institutions to activate public spaces and/or support arts initiatives with the digital fabrication lab. Work with local artists to nurture emerging talent: Artisans and Innovators in Residence. A residency program that supports creatives with the resources they need to build their innovative concepts.

Free Community Events

 Up to 10 free community events per year. Talks/lectures, panels, exhibitions, meetups, and presentations exploring the fields of Art, Design, Engineering, Internet of Things, Machine Learning, Artificial Intelligence, Robotics, Automation, Autonomous, Alternative Energies, Advanced Manufacturing and Construction, Climate Resilience, Maker Education, and Community Benefits relevant topics to advance education and workforce development in the region, preparing the City for innovation industries.

CONCLUSION:

Based upon the foregoing, the Administration recommends in favor of approving an amended and restated Lease Agreement with Moonlighter Fablab, Inc. d/b/a Moonlighter Makerspace, in accordance with the above essential terms and conditions.

Applicable Area

South Beach
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 
ATTACHMENTS:
DescriptionType
Exhibit A- Public BenefitsOther