155-2000 LTC
CITY OF MIAMI BEACH
1700 Convention Center Drive, Miami Beach. FI. 33139
http:\\ci.miami~beach.f1.us
Office of the City Manager
Telephone (305) 573-7193
Facsimile (305) 673-7782
L.T.C, NO,
155-2000
LETTER TD COMMISSION
August 10, 2000
TO:
Mayor and Members of the City Commission
Lawrence A. Levy, City~~
Anchor Shops - Xando's closing
FROM:
SUBJECT:
On Tuesday August I, the Administration received a letter from Xando Cosi, Inc., infonning us of
their intentions to close Xando's at the Anchor Shops. On Thursday, August 3, a follow-up phone
call was received from Craig Hantgen, Director of Real Estate for Xando Cosi, Inc., infonning us
that Xando's was scheduled to close on Friday, August 4. This marks the second closing of a
Xando's in South Florida. Their location at the Shops at Sunset Place closed in April of this year,
followed shortly thereafter by the closing/relocation of their regional office to New York.
Xando's was the first tenant to sign a lease in the Anchor Shops, and based upon the extent of their
build-out, received a two year rent-abatement. Xando's was scheduled to begin paying rent in
December, 2000 at a rate of $37,56 per square foot. Xando's occupied 2,250 square feet. In
subsequent discussions with the tenant, only those fixtures which are proprietary to Xando's will be
removed. These include certain kitchen equipment, cash registers and coffee bean themed
furnishings. RDA staffwi11 oversee removal of the materials, Xando's has committed to maintaining
the space in clean condition until such time that a new tenant can be secured. Xando's will also use
its resources to assist in finding a new tenant for the space. Staff has also been conferring with the
Legal Department to detennine what remedies and recourses the RDA may have as a result of the
breaching of the Lease Agreement.
In the meantime, the Administration is continuing to field inquiries and negotiate leases for the
remaining spaces along 16th Street, and the RFP for the leasing and management of the retail
component of the Anchor Shops and Parking Garage was finally re-issued on August 10, 2000.
Responses are due on September 15, 2000.
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Tel: 212.6j3-1600
FaA: 212-4'3-1666
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July 28, 2000
VIA OVERNIGHT MAIL
Mr. Kent Bonde
Redevelopment Coordinator
City of Miami Beach
1700 Convention Center Drive
3M Floor
Miami Beach. FL 33139
Re~ ADc:hor Shops at South Beach
Retail Sublease Between MB Redevelopment, Jnc. and Xaudo, Ine.. (f/kIa DNA, IJU:.)
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-I)' -Mr;Bonde:
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. We;l.l'e sending Ibis notice in connection with the above referenced Sublease,
ASa consequence to the recent merger of Xando aaci Cosi and the resulting ehange in
cQIpllCate and individual store orientation and site criteria. the South Beach store has been
s~ilied to close, These company changes will not permit the South Beach store to
operate consistent with corporate requirements. nor in the best interest of the property,
Xaado is mindful of our responsibilities 3lld we inrend to work closely with the Landlord to
locate a replacement tenant which would be better suited for Ibis property_
Please calI me to discuss this matter further so that we can work toward an expeditious and
mutually satisfactory resolution of this matter.
~---
tgan
Director of ReaJ. Estate
RR
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