Item Coversheet

Resolutions - C7  F




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:October  18, 2023
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND 4101 NW 37TH AVENUE LLC., AS LANDLORD, FOR USE OF APPROXIMATELY 5,000 RENTABLE SQUARE FEET OF PROPERTY, LOCATED AT 4101 NW 37TH AVENUE, MIAMI, FLORIDA, TO BE USED AS STORAGE SPACE FOR THE ENZO GALLO MURALS AND JACK STEWART’S “APOLLO” MURAL; SAID LEASE HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON NOVEMBER 15, 2023, WITH ONE (1) ADDITIONAL RENEWAL TERM FOR THREE (3) YEARS; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL LEASE AGREEMENT.

RECOMMENDATION

The Administration recommends the Mayor and City Commission adopt the Resolution.

BACKGROUND/HISTORY

On July 6, 2016, the property owner of the building located at 1200 Lincoln Road obtained the Design Review Board's approval for a new citizen hotel project, and since then, has demolished the building. The building featured four (4) murals, together entitled "The Glory of Old Glory" (the " Enzo Gallo Murals”), created in 1971 by Italian artist and sculptor Enzo Gallo, an immigrant who fled Italy for Cuba and subsequently emigrated to South Florida.

 

The Enzo Gallo Murals were commissioned by the building's former owner, Shepard Broad, developer of the Bay Harbor Islands, and were displayed on the prominent corner of Alton Road and Lincoln Road for more than 50 years. The Enzo Gallo Murals are part of Miami Beach history and have high artistic value. They are one of the few public art works in the City depicting key elements of American history, making the preservation thereof important not just artistically, but as a matter of civic pride.

 

Prior to the building being demolished, members of the Miami Beach preservation community urged the City to take action to save the Murals as the private property owner had no obligation to save them. Subject to City confirmation, the owner' s representatives indicated the owner would take steps to cut and remove the Enzo Gallo Murals in an effort to preserve them so as long the owner is not responsible for storing the Murals for future installation and provided that the removal does not delay the owner' s private project.

 

 Consequently, on June 22, 2022, the Mayor and City Commission adopted Resolution No. 2022-32204 directing the Administration to take all steps necessary to assist with the efforts to remove and store the Murals at an appropriate to-be-determined temporary location, pending selection and approval of a suitable permanent location for the Enzo Gallo Murals. Additionally, said Resolution accepted the   owner's donation of the Murals to the City, and referred the foregoing to the Art in Public Places Committee for an advisory recommendation as to potential locations for the placement of the Enzo Gallo Murals.

 

The Miami Design Preservation League (MDPL) entered into a storage space lease agreement with a private landlord to temporarily store the Murals at no cost, at 1656 Alton Road (the “Storage Facility”).  The storage space lease is set to expire on December 31, 2023, and the Murals must be relocated beforehand.   

 

Concurrently, on May 11, 2021, an application was filed by 3425 Collins Avenue, LLC ("The Developer'') requesting modifications to a previously issued Certificate of Appropriateness for the partial demolition renovation and restoration of the existing 16-story hotel building, including the total demolition of the 1955 south addition, and the construction of a new 16-story detached ground level addition. Specifically, the Developer requested approval of a redesigned new detached ground level tower addition and modifications to the site plan. Approval of the Certificate of Appropriateness required several conditions, including the following related to Jack Stewart's "Apollo" mural.

 

HPB20-0441 (Page 2 of 11)

 

C. The project would remain consistent with the criteria and requirements of section 118-564 and 133-SO(a) if the following conditions are met:

b. The Developer has proffered to donate the Jack Stewart "Apollo" mural to the City covering all the cost 'for its relocation and restoration. Prior to the issuance of a building permit for the new residential tower, the Developer shall return to the Board to present the final plan 'for the restoration of the mural including the specific location where it will be installed. 

 

Consequently, on July 20, 2022, the Mayor and City Commission adopted Resolution No. 2022-32230, authorizing the City Manager to execute a Memorandum of Understanding (MOU) between the City and 3425 Collins LLC (Developer) pursuant to the requirements of the City’s Historic Preservation Board, involving Jack Stewart’s “Apollo” Mural. Said MOU requiring the developer, at its sole cost, to restore, transport and install the fully restored mural on the new building for Fire Station No.1.

 

In satisfaction of Condition I(C)(1)(b) of the HPB Order, and in satisfaction of Resolution 2022-32230 adopted by the City on July 20, 202, the Developer agreed to restore the Mural; and upon acceptance by the City of the Conservator’s restoration report, deliver the Mural to the storage location to be determined by the City (the "City Storage Location"). Additionally, the Developer would provide to the City the Developer Contribution Funds in the amount of $850,582.00, in order for the City to undertake the installation and incorporation of the Apollo mural onto the Fire Station No. 1 building. The contribution of funds include, without limitation, any and all design and engineering costs associated with the integration of the Apollo mural, as a component of the Fire Station structure; construction costs associated with the framework or other installation features required to accommodate the installation of the Apollo mural on the Fire Station structure; any restoration costs required prior to installation of the Apollo mural onto the Fire Station; transportation from the City Storage Location to the Fire Station for installation; and all work and services related to the installation of the Apollo mural onto the Fire Station.

 

On or around November 15, 2023, the Developer will deliver the Apollo mural to the City Storage Location.   The Developer will coordinate and assume all expenses for the delivery of the restored Mural to the City Storage Location. Upon delivery of the Apollo mural to the City Storage Location and transfer of the Developer Contribution Funds, the Developer shall have no further obligation or liability to the City with respect to the Apollo mural or arising out of the proffer.

ANALYSIS

In accordance with Resolution No. 2022-32204 and in satisfaction of Resolution No. 2022-32230, the Administration has researched viable warehouse locations to house the Enzo Gallo Murals and the Apollo Mural. Therefore, Administration is seeking approval to negotiate such a lease agreement for the Enzo Gallo and Apollo Murals with rental rates of $20 per square foot (PSF) and approximately 4,000 square feet of space as further detailed in the terms below.  The Administration has negotiated the attached Letter of Intent (LOI) attached hereto as Exhibit A prior to entering into the lease.

 

A summary of the proposed lease terms are as follows:

 

TENANT:                               City of Miami Beach, a Florida municipal corporation.

 

LANDLORD:                          Vaso Realty Corp.

 

DEMISED PREMISES:         7333 NW 32nd Avenue

                                                Miami, Florida 33147

 

SIZE:                                       Approximately 4,000 square feet

 

TERM:                                    Three (3) Years

 

 RENEWAL OPTION:             Two (2) renewal options for one (1) year each

 

 BASE RENT:                         $20 per square foot ($80,000 annually; $6,666                                                  monthly)

 ESCALATION:                       3% per year, starting the second lease year.

 

LEASE

COMMENCEMENT DATE:   November 15, 2023

 

 RENT

 COMMENCEMENT DATE:   30 days after delivery date

 

 

SECURITY DEPOSIT:          Two (2) month’s rent ($13,332)

 USE:                                     The Demised Premises shall be used by the City as a storage location for the Enzo Gallo and Apollo Murals.

SUPPORTING SURVEY DATA

n/a

FINANCIAL INFORMATION

The fiscal impact for storage of the Enzo Gallo and Apollo murals is $80,000, and has been funded for FY 2024.

 

Amount(s)/Account(s):
n/a

CONCLUSION

Based on the foregoing, the Administration recommends the Mayor and City Commission adopt the Resolution approving the proposed Lease Agreement between the City and Vaso Realty Group for approximately 4,000 rentable square feet of space located at 7733 NW 32nd Avenue, Miami, Florida.

Applicable Area

Not Applicable
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 
Legislative Tracking
Facilities and Fleet Management
Sponsor
Sponsored by Commissioner Alex Fernandez

ATTACHMENTS:
Description
Revised Memorandum
Resolution
Exhibit A