2009-27096 ResoRESOLUTION NO. 2009-27096
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING ON FIRST READING, A
LEASE AGREEMENT BETWEEN THE CITY AND ROMA WAXING, INC.
(D1B/A UNI.K WAX), FOR USE OF 1,290.59 SQUARE FEET OF CITY-
OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 3
(A/K/A 771 17T" STREET), MIAMI BEACH, FLORIDA; SAID LEASE
HAVING AN INITIAL TERM OF THREE YEARS, WITH AN ADDITIONAL
THREE YEAR RENEWAL TERM, AT THE CITY'S SOLE DISCRETION;
WAIVING BY 5/7THS VOTE, THE COMPETITIVE BIDDING AND
APPRAISAL REQUIREMENTS, AS REQUIRED BY SECTION 82-39 OF
THE MIAMI BEACH CITY CODE; FURTHER SETTING A PUBLIC
HEARING ON JULY 15, 2009, FOR THE SECOND READING (AND FINAL
APPROVAL) OF THE LEASE AGREEMENT
WHEREAS, on October 17, 2001, the City Commission adopted Resolution No.
2001-24661, authorizing the purchase of 1701 Meridian Avenue with the intention of
preserving the retail environment on the ground floor of the property; and
WHEREAS, on June 19, 2002, the City Commission adopted Resolution No. 2002-
24900, authorizing the Mayor and City Clerk to execute a lease agreement between the
City and Roma Waxing, Inc. having an initial term of three (3) years, commencing on
December 1, 2002, and ending on November 30, 2005, with an additional three (3) year
renewal term, commencing on December 1, 2005, and expiring on November 30, 2008;
and
WHEREAS, Roma Waxing has requested a new lease, said proposed lease having
an initial term of three years, commencing August 1, 2009 and ending July 31, 2012, with
one additional three year renewal term, to continue providing hair removal services in their
current space; and
WHEREAS, Section 82-39 of the Miami Beach City Code, governing the sale/lease
of public property, requires a competitive bidding process, a Planning Department analysis,
and an independent appraisal to determine the value of the leasehold interest, as well as
two (2) readings of the proposed lease, with the second (and final) reading followed by an
advertised public hearing to obtain citizen input; and
WHEREAS, the Administration would hereby recommend that the Mayor and City
Commission approve the attached Lease Agreement on first reading, and hereby set the
public hearing on July 15, 2009, for second reading and final approval of the Agreement;
and
WHEREAS, Section 82-39 of the City Code further provides for the waiver of the
competitive bidding and appraisal requirements, by 5/7ths vote of the Mayor and City
Commission, for leases of City land, upon a finding by the Mayor and City Commission that
the public interest would be served by waiving such conditions; the Administration would
also hereby recommend that the Mayor and City Commission approve said waiver.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve on first reading, a Lease Agreement between the City and
Roma Waxing, Inc. (d/b/a Uni.K Wax) for use of 1290.59 square feet of City-owned
property, located at 1701 Meridian Avenue, Unit 3 (a/k/a 771 17th Street), Miami Beach,
Florida for an initial term of three years, with an additional three year renewal term, at the
City's sole discretion, and waiving by 5/7tns vote, the competitive bidding and appraisal
requirements, as required by Section 82-39 of the Miami Beach City Code; further setting a
public hearing on July 15, 2009, for the second reading (and final approval) of the Lease
Agreement.
PASSED and ADOPTED this 3rd day of June, 2009.
ATTEST:
Q P~~
Robert Parcher, CITY CLERK
atti Herrera ower, MAYOR
JMG\HMFWP\ACV\rlr
F:\RHCD\$ALL\ECON\$ALL\ASSET\777-17th Street\Roma\ROMA Lease Agreement.RES.doc
APPROVED A$ TO
FORM & LANGUAGE `_
~ FOR EXECUTION
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c.+ty Date
COMMISSION ITEM SUMMARY
Condensed Title
Request for Approval for a Lease Agreement between the City and Uni. K Wax Center for use of 1290.59 SF ofCity-owned property
located at 1701 Meridian Avenue, Unit 3, for a term of three years, with an additional three year renewal term, waiving by 5/7ths
vote the competitive bidding and appraisal requirements as required by Section 82-30 and setting a public hearing on July 15, 2009
for second reading and public hearing.
Key Intended Outcome Supported:
Increase resident satisfaction with the level of services and facilities.
Supporting Data (Surveys, Environmental Scan, etc.): Approximately 40% of retail businesses surveyed, rank Miami Beach as one
of the best places to do business and 61 % of the same group would recommend Miami Beach as a place to do business.
Issue:
Should the Ci a rove the lease a reement?
item SummaryiKecommenaaiion:
FIRST READING
In 2001, the City Commission authorized the purchase of 1701 Meridian Avenue to address the City's ongoing need for
administrative office expansion. Also in consideration was the preservation of a retail environment on the ground floor of the
property. When the City purchased the building, Uni.K Wax Center had been an existing tenant of the retail space since 1999.
The lease governed approximately 1290 square feet ofCity-owned property. The square footage was corrected to 1290.59 per a
2008 City survey. Uni.K Wax Center will continue to lease space at the same location on a month-to-month basis until a new lease
is fully approved by the City Commission. The proposed new lease will incorporate the following terms:
• Square Footage: 1290.59 per updated 2008 City survey.
• Rent: Tenant has agreed to a rent increase from the currently paid $39.75 per SF to $41.07 per SF, including Common
Area Maintenance (which includes maintenance, real estate taxes, and insurance);
• Use and Possession: The leased Premises would be used for the purpose of providing/operating a hair removal facility,
including waxing, facials and retail sales of related items.
• Security Deposit: Upon execution of the Agreement, the Tenant will furnish the City a Security Deposit in the sum of
$5, 000.
Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements, by 5/7ths vote of the Mayor
and City Commission, upon a finding by the Mayor and City Commission that the public interest would be served by waiving such
conditions. At the March 10, 2009 meeting of the Finance and Citywide Projects Committee, the Committee determined that it was
in the public's best interest to forgo competitive bidding for the leasing of City-owned surplus space usable for commercial
retail/office space, and staff should proceed in leasing the identified leaseable space in 1701 Meridian according to market rates
and industry standards.
A Planning Department analysis finds that the use of this area as retail space is consistent with the land use designation contained
in the Comprehensive Plan (attached).
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amount Account
Funds: n/a 1 n/a
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Ana Cecilia Velasco extension 6727
Sign-Offs:
Department Director A~ssista t Ci anage City Manager
AP G
T:IAGENDA12009Vune 31RegularlROMA Lease Agreement 1st Reading. SUM.doc V
m MIAMIBEACH
U~
AGENDA ITEM ~~
DATE~~
m MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, veww.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: June 3, 2009 FIRST READING
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING ON FIRST READING, A LEASE AGREEMENT
BETWEEN THE CITY AND ROMA WAXING, INC. (D/B/A UNI.K WAX CENTER), FOR
USE OF 1,290.59 SQUARE FEET OFCITY-OWNED PROPERTY, LOCATED AT 1701
MERIDIAN AVENUE, UNIT 3 (A/K/A 771 17T" STREET), MIAMI BEACH, FLORIDA;
SAID LEASE HAVING AN INITIAL TERM OF THREE YEARS, WITH AN ADDITIONAL
THREE YEAR RENEWAL TERM, AT THE CITY'S SOLE DISCRETION; WAIVING BY
5/7THS VOTE, THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS, AS
REQUIRED BY SECTION 82-39 OF THE MIAMI BEACH CITY CODE; FURTHER
SETTING A PUBLIC HEARING ON JULY 15, 2009, FOR THE SECOND READING
(AND FINAL APPROVAL) OF THE LEASE AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
On October 17, 2001, the City Commission passed Resolution No. 2001-24661 authorizing the
purchase of the building at 1701 Meridian Avenue in order to address the City's ongoing need for
administrative office expansion. At the time, the preservation of a retail environment on the ground
floor of the property was considered and it was determined that retention of the retail space was
conducive to maintaining and enhancing the pedestrian character of the linkage between Lincoln
Road Mall and the Civic/Convention Center area. Staff recently conducted a space plan which
indicates that the usage of the first floor of 1701 Meridian remains a primary use for commercial
retail space.
When the City purchased the building, Roma Waxing (d/b/a Uni.K Wax Center) had been an
existing retail tenant since 1999. The lease governed approximately 1290 square feet of City-owned
property and the rent had been adjusted over the term with CPI increases to the current rental rate
of $39.75 per SF, including CAM costs.
ANALYSIS
Roma Waxing has remained in the space on a month-to-month tenancy since December 1, 2008,
pending Commission review of the City's Space Planning needs. This review was concluded on
March 10, 2009, and continued commercial leasing of retail space at 1701 Meridian Avenue was
recommended. Roma Waxing has requested a new lease for an initial term of three years
commencing August 1, 2009, and ending July 31, 2012, with one additional three year renewal term.
Commission Memorandum
Roma Lease Agreement
June 3, 2009
Page 2 of 3
The Tenant will continue to provide a hair removal facility, including waxing and facials and retail
sales of related items in its current space, and has agreed to the terms outlined below.
Summary of Terms:
Square Footage: 1290.59 per updated 2008 City survey.
Rent: Tenant has agreed to increase the rent from the current rate of $39.75 per SF, including
CAM, to $41.07 per SF, including CAM.
Common Area Maintenance (CAM) costs: Amended to $13.60 per SF (increased from current
$13.07 per SF) to reflect current costs, and which includes payment of maintenance, real estate
taxes, and insurance.
Security Deposit: Tenant shall furnish the City a Security Deposit in the sum of $5,000.
Use and Possession: The Leased Premises will be used by the Tenant solely as a hair removal
facility, including waxing and retail sale of items, facials and retail sales of related items.
Review of Comparable Market Analysis:
A review of nearby available space revealed that the asking price for ground floor retail space at
1680 Meridian Avenue is $30 per SF NNN (Triple Net). Retail space at 1560 Lenox Avenue is being
marketed at $38-$40 per SF Gross.
Additionally, City staff consulted area real estate brokers who focus on this market (including the
Lincoln and Alton Road corridors) regarding realistic area comparables in the current market and
were informed that the realistic range for rents in the retail portion of the 1701 Meridian Avenue
building could run from $35-$45 per SF NNN, with the lower end of the spectrum being more
realistic in today's environment. It was suggested that due to the absence of tourist traffic in the
area, the focus on leasing any new space should remain local service oriented, such as the City's
current retail tenants. Therefore, the proposed rent of $41.07 per SF Gross for Uni.K Wax Center is
within the range of market rates, and the use of the retail space is feasible for market and area
conditions.
CONCLUSION
Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, provides
that the lease of any City-owned property, including option periods, requires the following:
1) a public bidding process;
2) Planning Department analysis (see attached);
3) an independent appraisal to determine the value of the leasehold interest
4) two (2) readings of the proposed lease; and
5) a public hearing to obtain citizen input.
Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements,
by 5i7ths vote of the Mayor and City Commission, upon a finding by the Mayor and City Commission
that the public interest would be served by waiving such conditions. At the March 10, 2009 meeting
of the Finance and Citywide Projects Committee, the Committee determined that it was in the
public's best interest to forgo competitive bidding and staff should proceed in leasing the identified
leaseable space in 1701 Meridian according to market rates and industry standards.
2
Commission Memorandum
Roma Lease Agreement
June 3, 2009
Page 3 of 3
A Planning Department analysis finds that the use of this area as retail space is consistent with the
land use designation contained in the Comprehensive Plan (attached).
Based on the aforementioned, the favorable experience and payment history with the current
Tenant, and the current market conditions, the Administration recommends that the Mayor and City
Commission approve, on first reading, the Lease Agreement by and between the City and Roma
Waxing, Inc. (D/B/A Uni.K Wax Center), for the lease of 1,290.59 square feet of City-owned
property, located at 1701 Meridian, Miami Beach, Florida, for an initial term of three years, with one
additional three year renewal term, at the City's sole discretion; waiving by 5/7ths vote, the
competitive bidding and appraisal requirements, as required by Section 82-39 of the Miami Beach
City Code; and further setting a public hearing on July 15, 2009 for the second reading (and final
approval) of the Lease Agreement.
JMG\HMFWP\ACV
Attachments (1)
T:IAGENDA~2009~,1une 3~Regular~ROMA Lease Agreement 1st Reading. MEM.doc
3
m MIAMIBEACH
PLANNING DEPARTMENT
INTEROFFICE MEMORANDUM
TO: Anna Parekh, Real Estate, Housing 8 Comm. Development Director
FROM: Jorge G. Gomez, Planning Director~~~ ~, ~~=
DATE: April 2, 2009
SUaJECT: Analysis of Proposed Lease Agreement between the City and Roma Waxing,
Inc. (D/B/A Uni-K Wax) - 1701 Meridian Avenue
Pursuant to your request, this memorandum will serve as a planning analysis of the
proposed lease agreement between The City and Roma Waxing, Inc. (D/B/A Uni-K Wax),
for use approximately 1,290.5 s.f. of City-owned retail space located at 1701 Meridian
Avenue (a/k/a 771 17~' Street), said lease having a term of three (3) years.
Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or
lease of City-owned land be analyzed from a planning perspective so that the City
Commission and the public are fully appraised of all conditions relating to the proposed sale
or lease. The following is an analysis of the criteria delineated in the Code:
Whether or not the proposed use is in keeping with city goals and objectives
and conforms to the city comprehensive plan.
Consistent -The subject property, 1701 Meridian Avenue, is an office building with
retail spaces on the ground floor. The Future Land Use Map of the City's
Comprehensive Plan designates the site as CD-3 Commercial High Intensity.
The Lease Agreement between the City and Roma Waxing, Inc., for use of the retail
space would be consistent with the land use designation contained in the
Comprehensive Plan.
2. The impact on adjacent property, including the potential positive or negative
impacts such as diminution of open space, increased traffic, noise level or
enhanced property values, improved development patterns and provision of
necessary services. Based on the proposed use of the property, the city shall
determine the potential impact of the project on city utilities and other
infrastructure needs and the magnitude of costs associated with needed
infrastructure improvements. Should it become apparent that further
evaluation of traffic impact is needed, the proponent shall be responsible for
obtaining a traffic impact analysis from a reputable traffic engineer.
Consistent -The property subject to the lease is a retail bay within the first floor
level of the 777 office building. The property has been and is currently in use as an
office building and retail space. There would be no diminution of open space as no
new construction is being proposed. No additional utility or infrastructure is
necessary.
Proposed Lease -Roma Waxing, Inc.
Uni-K Wax - 1701 Meridan Avenue.
Mach 24, 2009
Page 2
3. A determination as to whether or not the proposed use is in keeping with a
public purpose and community needs, such as expanding the city's revenue
base, creating jobs, creating a significant revenue stream, and improving the
community's overall quality of life.
Consistent -The retail lease generates an income stream for the City, and the
lounge provides jobs for local service workers. As long as this venue operates in a
responsible way, it has the potential to be an asset to this area of the City.
4. Determination as to whether or not the development is in keeping with the
surrounding neighborhood, will block views or create environmental
intrusions, and evaluation of the design and aesthetic considerations of the
project.
Consistent -The establishment is already in operation, and has not created
negative effects on the surrounding neighborhood. There have been no significant
code violations in the past four years.
5. The impact on adjacent properties, whether or not there is adequate parking,
street and infrastructure needs.
Consistent -The impact on adjacent properties should be minimal, as the facility is
already in use. Parking is available nearby. No further infrastructure needs are
anticipated.
6. A determination as to whether or not alternatives are available for the
proposed disposition, including assembly of adjacent properties, and whether
the project could be accomplished under a private ownership assembly.
Consistent -This criterion is not applicable as the establishment is already
operating within the subject space, and the proposed lease extends the term of the
lease.
7. Within the constraints of public objectives, the department should examine
financial issues such as job generation, providing housing opportunities, and
the return to the city for its disposition of property.
Consistent -The existing establishment slightly increases the job base of the City.
The proposed lease would be expected to maintain this level of job creation. No
housing opportunities are created by the proposed lease.
8. Such other issues as the Planning Department may deem appropriate in
analysis of the proposed disposition.
Planning Staff has not identified any further items.
JGG/RGL
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