2010-27551 Reso RESOLUTION NO. 2010 -27551
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR
AND CITY CLERK TO EXECUTE AN AMENDMENT NO. 1 TO THAT CERTAIN
LEASE AGREEMENT BY AND BETWEEN THE CITY AND MYSTERY PARK
ARTS COMPANY, INC., DATED JANUARY 13, 2010, FOR THE USE OF THE
TWO CITY -OWNED BUILDINGS, COMMONLY KNOWN AS THE CARL
FISHER CLUBHOUSE AND LITTLE STAGE THEATER, LOCATED AT 2100
WASHINGTON AVENUE, MIAMI BEACH, FLORIDA; SAID AMENDMENT
PROVIDING FOR A REDUCTION IN TENANT'S PAYMENT OF MONTHLY
ADDITIONAL RENT, FOR A PERIOD OF FIVE (5) MONTHS, COMMENCING
ON DECEMBER 1, 2010, AND ENDING ON APRIL 30, 2011.
WHEREAS, on January 13, 2010, the Mayor and Commission adopted Resolution No.
2010 - 27305, approving a Lease Agreement with Mystery Parks Arts Company d /b /a SoBe
Music Institute (SoBe Arts) for use of an approximately 3,080 square foot facility known as the
Carl Fisher Clubhouse, located within the 21 Street Community Center Complex, 2100
Washington Avenue, and the approximately 2,295 square foot building known as the "Little
Stage Theater" located in the same complex, (the Lease Agreement), for an initial term
commencing on January 13, 2010 and ending on January 12, 2015; and
WHEREAS, pursuant to the Lease pay Agreement, Tenant is required to the sum of
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$872 in Additional Rent; and
WHEREAS, SoBe Arts has requested a credit for the amount of rent paid, to
compensate it for alleged disruption during the renovation of the Little Stage Theater facility that
occurred between May and September, 2009, and which it alleges resulted in its inability to
operate the facility and generate sufficient revenue to cover expenses; and
WHEREAS, on November 3, 2010, the Finance and Citywide Projects Committee
recommended in favor of granting SoBe Arts a five (5) month reduction to its the monthly
additional payments, which reduction requires an amendment to the Lease Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
approve and authorize the Mayor and City Clerk to execute Amendment No. 1 to that certain
Lease Agreement by between the City and So Be Arts, dated January 13, 2010, for the use of
the two City -owned buildings, commonly known as the Carl Fisher Club House and Little Stage
Theater, located at 2100 Washington Avenue, Miami Beach, Florida; said Amendment
providing for a reduction of Tenant's of monthly additional rent payment, for a period of five (5)
months, commencing on December 1, 2010, and ending on April 30, 2011.
PASSED AND ADOPTED this !7#-11 day of November, 2010.
ATTEST:
L(.1.( (1 C-vit
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CITY CLERK APPROVED AS TO
FORM & LANGUAGE
& FnR EXECUTION
T:\AGENDA \2010 \November 17\Consent \So Be Arts Amendment Reso,doc J (11%\‘.6
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AMENDMENT NO. 1
TO THAT CERTAIN LEASE AGREEMENT BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA AND
MYSTERY PARK ARTS COMPANY, INC.
THIS AMENDMENT NO. 1 TO THE LEASE AGREEMENT made this 18 day of November,
2010, (the "Effectie Date "), between the CITY OF MIAMI BEACH, a municipal corporation of
the State of Florida (hereinafter called "City ") having its principal address at 1700 Convention
Center Drive, Miami Beach, Florida 33139, and MYSTERY PARK ARTS COMPANY, INC., a
Florida not - for - profit corporation, having its principal address at 751 Euclid Avenue, Miami
Beach, Florida, 33139 (hereinafter called "Tenant ").
WITNESSETH
WHEREAS, on January 13, 2010, the Mayor and Commission adopted Resolution No.
2010 - 27305, approving a Lease Agreement with Mystery Parks Arts Company d /b /a SoBe
Music Institute (SoBe Arts) for use of an approximately 3,080 square foot facility known as the
Carl Fisher Clubhouse, located within the 21 Street Community Center Complex, 2100
Washington Avenue, and the approximately 2,295 square foot building known as the "Little
Stage Theater" located in the same complex, (the Lease Agreement), for an initial term
commencing on January 13, 2010 and ending on January 12, 2015; and
WHEREAS, pursuant to the Lease Agreement, Tenant is required to pay the sum of
$872 in Additional Rent; and
WHEREAS, SoBe Arts has requested a credit for the amount of rent paid, to
compensate it for alleged disruption during the renovation of the Little Stage Theater facility that
occurred between May and September, 2009, and which it alleges resulted in its inability to
operate the facility and generate sufficient revenue to cover expenses; and
WHEREAS, on November 3, 2010, the Finance and Citywide Projects Committee
recommended in favor of granting SoBe Arts a five (5) month reduction to its the monthly
additional payments, which reduction requires an amendment to the Lease Agreement.
NOW, THEREFORE, in consideration of the premises of mutual covenants and
conditions herein contained and other good and valuable consideration, the receipt and
adequacy of which are hereby conclusively acknowledged, it is agreed by the parties hereto to
amend the Lease Agreement as follows:
1. Section 3, entitled "Rent" is amended as follows: (deleted language is and
inserted language is underlined);
3.1 Base Rent
Base Rent for the Demised Premises shall begin to accrue on the Commencement Date.
In consideration of Tenant's request for a credit for the amount of Rent paid during the
renovation of the Little Stage Theater facility, the City agrees to grant the Tenant a five (5)
month reduction in Tenant's payment of monthly Additional Rent. Accordingly, for the period
commencing on December 1, 2010, through April 30, 2011, Tenant shall pay to the City the
reduced amount of $500 in monthly Additional Rent. Commencing on May 1, 2011, Tenant
shall resume its full payment of Additional Rent, in the amount of $872 per month.
2. Except as amended hereby, the Lease Agreement remains in full force and effect and is
reconfirmed for all purposes.
IN WITNESS OF THE FOREGOING, the parties have set their hands and seals
the day and year first written above.
ATTEST: CITY OF MIAMI BEACH, FLORIDA
City Clerk Mayor
ATTEST: MYSTERY PARK ARTS COMPANY, INC.
Secretary President
Print Name Print Name
T:\AGENDA\2010 \November 17 \Consent \SO BE Arts Amendment.doc
APPROVED AS TO
FORM & LANGUAGE
t& FOR EXECUTION
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Date
COMMISSION ITEM SUMMARY
Condensed Title:
Resolution approving and authorizing the Mayor and City Clerk to execute Amendment No. 1 to the Lease Agreement
between the City and Mystery Park Arts Company d /b /a So Be Music Company, Inc., dated January 13, 2010, for use
of the two City -owned buildings, commonly known as the Carl Fisher Club House and Little Stage Theater, located at
2100 Washington Avenue, Miami Beach, Florida, said Amendment providing for a reduction of the Tenant's monthly
rent for a period of five (5) months, commencing on December 1, 2010 and ending on April 30, 2011.
Key Intended Outcome Supported:
Increase community rating of cultural activities and ensure well maintained facilities.
Supporting Data (Surveys, Environmental Scan, etc.):
Approximately 73% of residents surveyed in the 2009 survey, rank the availability of Miami Beach's cultural and
recreational ro rams as excellent and good.
p 9 g
Issue:
Shall the City Commission approve Amendment No. 1 to the Lease Agreement?
Item Summary /Recommendation:
On January 13, 2010, the City Commission approved a Lease Agreement with SoBe Arts for above - referenced City -
owned facilities, providing for a five -year lease term with two renewal options of two years each at the City's sole
discretion. The Base Rent is $1.20 per year and the Additional Rent to cover SoBe Arts' proportionate operating
expenses is $10,464 per year, payable in monthly installments of $872 per month (calculated based on $500 for the
Clubhouse and $372 for the Little Stage Theater). Pursuant to the Lease Agreement, the City also receives fifteen
percent (15 %) of any gross revenues derived from third party rentals of the facility. Prior to entering into the current
Lease, SoBe Arts occupied the premises under a previous lease which expired on August 31, 2009, but was extended
on a month -to -month basis, pending negotiation of the current Lease. Under the previous lease, the Tenant was only
paying rent for use of the Carl Fisher Club House, at a rate of $500 per month. On May 31 2009, the City
Commission approved a letter agreement with SoBe Arts allowing it to utilize the Little Stage Theater to further its
educational and programming needs, for an additional $372 per month in rent to offset its proportionate share of
operating expenses. Leading up to the approval of the letter agreement, SoBe Arts assisted the City in identifying
certain repairs and improvements that were necessary in order to make the space usable. Since the repairs extended
well into its initial lease of the space, SoBe Arts couldn't use the space for approximately five months, but continued
to remit rent during this period.
SoBe Arts has requested a credit of rent paid during the renovation of the facility. On November 3, 2010, the Finance
and Citywide Projects Committee recommended a five (5) month reduction of the Additional Rent due in connection
with the Little Stage Theater, whereby SoBe Arts shall be allowed to reduce it's monthly payment of Additional Rent
by $372 per month, for the months of December 1, 2010 through April 30, 2011.
Advisory Board Recommendation:
Finance & Citywide Projects Committee: November 3, 2010
Financial Information:
Source of Funds: n/a Amount Account
1 n/a
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Anna Parekh, extension 7193
Sign -Offs:
Department Director Assistant City Manager City Mana• -r
AP HMF JMG I/ P:( „
T:\AGENDA\2010 \November 17 \Consent \SoBe Arts Amendment 1.SUM.doc
W I V 11 P‘r I DEAL n AGENDA ITEM C 7H
DATE 11 I -NO
1 -_,t) MIAMI
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager 4
DATE: November 17, 2010
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING ANDAUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AN AMENDMENT NO. 1 TO THAT CERTAIN LEASE AGREEMENT BY
AND BETWEEN THE CITY AND MYSTERY PARK ARTS COMPANY, INC., DATED
JANUARY 13, 2010, FOR THE USE OF THE TWO CITY -OWNED BUILDINGS,
COMMONLY KNOWN AS THE CARL FISHER CLUBHOUSE AND LITTLE STAGE
THEATER, LOCATED AT 2100 WASHINGTON AVENUE, MIAMI BEACH, FLORIDA;
SAID AMENDMENT PROVIDING FOR A REDUCTION IN TENANT'S PAYMENT OF
MONTHLY ADDITIONAL RENT, FOR A PERIOD OF FIVE (5) MONTHS, COMMENCING
ON DECEMBER 1, 2010, AND ENDING ON APRIL 30, 2011.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOMES SUPPORTED
Increase resident satisfaction with the level of services and facilities.
BACKGROUND
On January 13, 2010, the City Commission approved a Lease Agreement with Mystery Parks Arts
Company d /b /a SoBe Music Institute (SoBe Arts) for use of an approximately 3,080 square foot
facility known as the Carl Fisher Clubhouse, located within the 21 Street Community Center
Complex, 2100 Washington Avenue, and the approximately 2,295 square foot building known as the
"Little Stage Theater" located in the same complex. The Lease Agreement entitles SoBe to a five -
year lease term with renewal options (two additional option terms of two years each) at the City's
sole discretion. The Base Rent is $1.20 per year and the Additional Rent to cover SoBe Arts'
proportionate operating expenses is $10,464 per year, payable in monthly installments of $872 per
month (calculated based on $500 for the Clubhouse and $372 for the Little Stage Theater).
Pursuant to the Lease Agreement, the City also receives fifteen percent (15 %) of any gross
revenues derived from third party rentals of the facility.
ANALYSIS
Prior to entering into the current Lease, SoBe Arts occupied the premises under a previous lease
which expired on August 31, 2009, but was extended on a month -to -month basis, pending
negotiation of the current Lease. Under the previous lease, SoBe Arts was only paying rent for use
of the Carl Fisher Club House, at a rate of $500 per month. On May 31 2009, the City
Commission approved a letter agreement with SoBe Arts allowing it to utilize the Little Stage Theater
to further its educational and programming needs, for an additional $372 per month in rent to offset
its proportionate share of operating expenses. It should be noted that leading up to the approval of
Commission Memorandum
Mystery Park A rts Lease
y
ry
November 17, 2010
Page 2 of 2
the letter agreement, SoBe Arts assisted the City in identifying certain repairs and improvements
that were necessary in order to make the space usable. Since the repairs extended well into its
initial lease of the space, SoBe Arts couldn't use the space for approximately five months, but
continued to remit rent during this period.
SoBe Arts has requested a credit of rent paid during the renovation of the Little Stage Theater
facility, which resulted in its inability to operate in the leased space during that time and generate
necessary revenue to cover their expenses. A rent reduction or credit would require an amendment
to the Lease Agreement.
CONCLUSION
At its November 3, 2010 meeting, the Finance and Citywide Projects Committee considered SoBe
Arts' request and is recommending a five (5) month reduction of the Additional Rent due in
connection with the Little Stage Theater, whereby SoBe Arts shall be allowed to reduce its' monthly
payment of Additional Rent by $372 per month, for the months of December 1, 2010 through April
30, 2011. Upon expiration of the five -month rent reduction period, and commencing on May 1, 2011,
SoBe Arts shall resume its full payment of Additional Rent at $872 per month as delineated in the
Lease Agreement.
JMG /HMF /AP /kob
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