| | | | | | | |  | Redevelopment Agency - RDA 1.
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Alina T. Hudak, City Manager | | | DATE: | June 28, 2023 | | | |
| | SUBJECT: | A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), ACCEPTING THE RECOMMENDATION OF THE CITY’S FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AND APPROVING, IN SUBSTANTIAL FORM, A LEASE AGREEMENT BETWEEN THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), AS LANDLORD AND MIAMI BEACH GAY PRIDE, INC., AS TENANT, FOR USE OF APPROXIMATELY 721 SQUARE FEET OF GROUND FLOOR RETAIL SPACE AS AN OFFICE, AT THE ANCHOR SHOPS AND GARAGE, LOCATED AT 100-16 STREET, SUITE NO. 5, MIAMI BEACH, FLORIDA (PREMISES), FOR AN INITIAL TERM OF THREE (3) YEARS WITH TWO (2) OPTIONS OF ONE (1) YEAR EACH, AT THE EXECUTIVE DIRECTOR’S DISCRETION; AND FURTHER AUTHORIZE THE EXECUTIVE DIRECTOR TO FINALIZE AND EXECUTE THE LEASE AGREEMENT. |
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| | | | | | | | RECOMMENDATION
| The Administration recommends that the Mayor and City Commission approve the Resolution. |
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| | | | | | | | BACKGROUND/HISTORY
| The Miami Beach Redevelopment Agency (the "RDA" or "Landlord") is a public body corporate and politic, which owns approximately 721 square feet of ground floor retail space, located at Anchor Shops, located at 100 16 Street, Suite No. 5, Miami Beach, FL 33139 (“Premises”).
Miami Beach Gay Pride, Inc. ("Miami Beach Pride") contacted the Administration regarding their interest in leasing a City property as the hub for their Miami Beach office, attached hereto as Exhibit A. Miami Beach Pride currently offices in leases an office in Miami Beach, which is lease is set to expire in June 2023. The organization desires to relocate within Miami Beach at the Anchor Shops and Garage.
Miami Beach Pride was established by former Miami Beach Mayor Matti Herrera Bower in 2008 as an initiative of the Miami Beach Gay Business Development Council. Miami Beach Pride brings together members of the lesbian, gay, bisexual, and transgender community, their friends, allies, and supporters in celebration of the unique spirit and culture of the LGBTQ+ community. Their mission to envision, plan and execute a roster of events and activities that are as diverse as the community itself, including activations centering on entertainment, events, arts, culture and civic and social engagement.
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| | | | | | | | ANALYSIS
| The prospective Tenant for the Premises extended a letter of intent (LOI) (Exhibit A). Below are the basic terms and conditions agreed to, which will be incorporated into the lease agreement in substantial form, accompanying this memorandum as Exhibit C:
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Landlord:
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Miami Beach Redevelopment Agency (RDA)
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Tenant:
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Miami Beach Gay Pride, Inc. d/b/a Miami Beach Pride
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Premises:
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+/-721 squarefootPremiseslocatedat 100-16 Street, Suite No. 5, MiamiBeach, FL 33139
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Term:
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Three (3) Years
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Renewal Options:
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Two (2) one-year renewal options each at the Executive Director’s sole discretion
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Lease
Commencement:
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The Lease Commencement date will be the date Landlord delivers the Premises to Tenant.
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Rent
Commencement:
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The first day of the month following possession.
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Base Rental Rate:
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$33.29 per rentable square foot, plus applicable sales tax.
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Annual Rent Increases:
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The base rental rate shall be increased by two percent (2%) annually.
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Prepaid Rent:
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Tenant shall be required to pay the first month's gross rent in the amount of $2,000.00 which shall be due upon lease execution.
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Security
Deposit:
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The amount of $2,000.00 (subject to Landlord's review of Tenant's financials and credit report) shall be due upon execution of the Lease, in addition to first month's rent.
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Guarantor:
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None
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Financial Statements:
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None
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Construction
Allowance:
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Tenant shall accept the premises in “AS-IS” condition and shall perform any necessary work at its sole cost and expense.
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Signage:
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Tenant shall have the ability to install exterior signage, subject to the
approval of Landlord in its proprietary and regulatory capacities.
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Use:
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Tenant shall use the Leased Premises solely for the purpose of an office for the organization as Tenant obtains all the necessary licenses and approvals from the governing municipalities.
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Conditions:
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The terms and conditions of the letter of intent are subject to approval by the Miami Beach Redevelopment Agency. The LOI is non-binding upon either party, and may be modified or withdrawn by the Landlord, without notice, at any time. Only a fully executed and delivered Lease Agreement, which shall be negotiated in good faith by both parties, shall serve as a binding agreement in this regard.
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As contained in said Letter of Intent, the Base Rental Rate is $33.29 per square foot, with two percent (2%) annual increases. The schedule of the Base Rent due over the initial and renewal terms are illustrated in the following chart:
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Year
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Annual Base Rent
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Monthly Base Rent
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1 (Aug-Dec)
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$ 10,000.00
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$ 2,000.00
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2
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$ 24,480.00
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$ 2,040.00
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3
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$ 24,969.60
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$ 2,080.80
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4
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$ 25,468.99
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$ 2,122.42
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5
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$ 25,978.37
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$ 2,164.86
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Total
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$ 110,896.96
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The proposed rent structure over the 5-year term will bring the City an estimated $110,897 over the term of the lease. The rent commencement will be effective the first day of the month following Landlord’s delivery of the Premises to the Tenant.
FINANCE AND ECONOMIC RESILIENCY COMMITTEE
On May 24, 2023, the City’s Finance and Economic Resiliency Committee (the “Committee”) considered and discussed this item. The Committee recommended in favor of approving a new lease with Miami Beach Gay Pride based upon the terms and conditions outlined above.
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| | | | | | | | SUPPORTING SURVEY DATA
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| | | | | | | | FINANCIAL INFORMATION
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| | | | | | | | CONCLUSION
| In consideration of the foregoing, the Administration recommends that the Chairperson and Members of the Miami Beach Redevelopment Agency accept the recommendation of the City’s Finance and Economic Resiliency Committee and approve a new lease agreement between the Miami Beach Redevelopment Agency (Landlord) and Miami Beach Gay Pride, Inc. (Tenant), having an initial term of three (3) years with two (2) one-year renewal terms at the option of the Executive Director. |
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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
Facilities and Fleet Management |
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