Adopt the Resolution.

BACKGROUND

On January 28^th, 2009, the Mayor and City Commission adopted Resolution No. 2009-26994 approving a new lease agreement (Lease Agreement) between the City and Colony Theater Café , Inc. d/b/a Segafredo (Tenant), for the use of 1,371 square feet of City-owned property located at 1040 Lincoln Road, Miami Beach, Florida (Premises).  The initial lease term was for a period of three (3) years, commencing November 1, 2008 and ending October 31, 2011, with two (2), three (3) year renewal terms.  

Colony Theatre Café is a full service restaurant and bar with an active sidewalk café permit authorized for forty-eight (48) tables and one hundred eighty-three (183) seats on Lincoln Road.  The sidewalk café permit is separate from the Lease Agreement for the Premises; however, the City receives percentage rent from the combined operations.

The lease was extended for both renewal terms with the second and final renewal term expiring October 31, 2017.  The basic terms of the current lease are as follows:

Premises:              1040 Lincoln Road

Initial Term:           Three (3) years commencing November 1, 2008 and ending October 31, 2011

Renewal Terms:  Two (2) renewal terms for three (3) years each (second and final renewal term expires October 31, 2017)

Size:                        The total lease area consists of approximately 1,371 square feet delineated as follows:

                                 769 SF restaurant/café space

                                 100 SF Colony Theatre storage space

                                 196 SF Colony Theatre lobby food & beverage concession

                                 306 SF off-site dumpster/storage area

                                 Since the 196-square foot lobby concession is intended only for Colony Theatre patrons, and since the 306-square foot dumpster/storage area is located off-site, the remaining 869 square feet (769 SF cafe plus 100 SF storage) is an adjusted square footage which more accurately reflects the revenue generating area occupied by Tenant.

Rental Rate:          The greater of Base Rent, in the amount of $217,174 for contract year 2015/16; or 6.5% of Gross Receipts (excepting allowable deductions), in the amount of $218,958 for contract year 2015/16.

                                 The following chart illustrates the rent revenue figures for the most recent four (4) contract years:

FINANCE & CITYWIDE PROJECTS COMMITTEE

The Administration presented the above information at the December 16, 2016 Finance and Citywide Projects Committee (“FCWPC”) meeting.  The FCWPC considered this matter and recommended in favor of negotiating a new lease agreement with Colony Theatre Café.