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2008-26968 ResoRESOLUTION NO. 2008-26968 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 COLONY THEATRE CAFE, INC. (D/B/A SEGAFREDO'S), AS THE RECOMMENDED PROPOSER PURSUANT TO REQUEST FOR PROPOSALS (RFP) N0.19-07/08, FOR USE OF THE FACILITY KNOWN AS THE COLONY THEATRE CAFE, LOCATED AT 1040 LINCOLN ROAD, SAID LEASE HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING RETROACTIVELY ON NOVEMBER 1, 2008, AND ENDING ON OCTOBER 31, 2011, WITH TWO (2) ADDITIONAL THREE (3) YEAR RENEWAL TERMS; FURTHER SETTING A PUBLIC HEARING ON JANUARY 28, 2009, FOR THE SECOND READING (AND FINAL APPROVAL) OF THE LEASE AGREEMENT WHEREAS, on February 13, 2008, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 19-07/08 for use of the City-owned facility known as the Colony Theater Cafe; and WHEREAS, RFP No. 19-07/08 was issued on February 14, 2008, with an opening date of April 18, 2008; and WHEREAS, on July 16, 2008, the Mayor and City Commission adopted Resolution No. 2008-26858, authorizing the Administration to enter into negotiations with Colony Theatre Cafe, Inc., d/b/a Segafredo, for lease of the City-owned facility known as the Colony Theatre Cafe; and WHEREAS, the Administration has negotiated the attached ,Lease Agreement with Colony Theater Cafe, Inc., (d/b/a Segafredo) for an initial term of three (3) years, commencing retroactively on November 1, 2008, and ending on October 31, 2011, with two (2) additional three (3) year renewal terms; and WHEREAS, the leased premises encompass the first (1St) floor restaurant/cafe space, a lobby concession area, and a dumpster/storage area, totaling 1,371 square feet, for which the Administration has negotiated a monthly base of rent of sixteen thousand six hundred eight dollars and fifty cents ($16,680.50) (which equals a minimum of two hundred thousand one hundred and sixty six dollars ($200,166.00) per year), or 6.5% of annual gross receipts, whichever is greater; and WHEREAS, Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property requires an advertised public bidding, an independent appraisal of the fair market or rental value of the property and a Planning Department analysis and 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 for second reading and final approval of the Agreement. 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, the attached Lease Agreement between the City and Colony Theater Cafe, Inc. (d/b/a Segafredo's), as the recommended proposer pursuant to Request For Proposals (RFP) No. 19-07/08, for use of the facility known as the Colony Theatre Cafe, located at 1040 Lincoln Road, said Lease having an initial term of three (3) years, commencing on November 1, 2008, and ending on October 31, 2011, with two (2) additional three (3) year renewal terms, further setting a public hearing on January 28, 2009, for the second reading (and final approval) of the Lease Agreement. PASSED and ADOPTED this 10th day of December, 2008. ATTEST: ~~ y 1 Robert Parcher, CITY CLERK atti Herrera Bower, MAYOR JMG\TH\ACV\rlr APPROVED AS TO FORM & LANGUAGE T.•1AGENDA120081December 101RegularlColony Theatre Cafe 1stReading.RES.do~ FOR EXECUTION ~ !z/S ~08 ..__.__ City Attome Date COMMISSION ITEM SUMMARY Condensed Title: 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 Colony Theatre Cafe, Inc. (D/B/A Segafredo's), for use of the facility known as the Colony Theatre Cafe, located at 1040 Lincoln Road, for an initial term of three (3) years, with two (2) additional three (3) year renewal terms. Ke Intended Outcome Su orted: To Ensure Well-Maintained Facilities and Increase Community Rating of Cultural Activities Supporting Data (Surveys, Environmental Scan, etc.): 60% of businesses and 66% of residents of say there are the right number of cultural activities. Residents and businesses are aligned in their preference for the types of cultural activities they'd like to see, with live music/concerts clean the most referred. Issue• Shall the City Commission Accept the City Manager's Recommendation? Item Summa /Recommendation: FIRST READING On February 13, 2008, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 19-07/08 for use 'of the City-owned facility known as the Colony Theatre Cafe, encompassing 1371 sq ft. Subsequently, RFP No. 19- 07/08 was issued on February 14, 2008, with an opening date of April 18, 2008. On July 16, 2008, the Mayor and City Commission adopted Resolution No. 2008-26858, accepting the recommendation of the City Manager and authorizing the Administration to enter into negotiations with the Colony Theater Cafe, Inc (D/B/A Segafredo's) for the attached Lease Agreement, with an initial term of three (3) years commencing on November 1, 2008, and ending on October 31, 2011, with two (2) additional three (3) year renewal terms. Tenant shall furnish the City with the base rent and/or percentage of gross (whichever is higher) as well as an Irrevocable Letter of Credit in lieu of a Security Deposit, as agreed to by the City. Rent terms are pursuant to the information gathered per a property appraisal as required by City Charter, Article II Sale or Lease of Public Property, as well as past performance by the Tenant at the site over the past five years. The Base Rent amount will be increased annually by the Consumer Price Index (CPI), throughout the term of the Lease. The Cafe currently holds an active Sidewalk Cafe permit which is nontransferable and is authorized for forty eight (48) tables and one hundred eighty three (183) seats. The Sidewalk Cafe permit is not part of the leased premises. The administration has negotiated a base of rent of $146.00 per square foot (minimum of $200,166 a year), or 6.5% of gross - whichever is greater. This represents a 46% improvement in minimum base rent as proposed by Colony Cafe, and 389% better than the current base rent amount. Previous to renovations, the premises encompassed 1,554 square feet, with the highest fee paid to the City based on aper-performance formula, equivalent to $4,848.71 per month or $37.44 psf. Based on reported 2007 gross receipts of $4,524,997, the proposed 6.5% would realize a total payment of $294,123, or the equivalent of $214 per square foot. The Base Rent amount will be increased annually by the Consumer Price Index (CPI), throughout the term of the Lease. Section 82-39 of the Miami Beach City Code governing the sale/lease of public property, as amended, an advertised public bidding, an independent appraisal of the fair market or rental value of the property, and a Planning Department analysis to be provided as part of the second reading, 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. Advisory Board Recommendation: Financial Information: Source of Funds: Amount Account 1 N/A Ci Clerk's Office Le islative Trackin Ana Cecilia Velasco, Asset Manager x 6727 Sign-Offs• Depart e D rector As 'sta t 'ty Ma ager 'ty Manager AP ACV HF p( JMG T:WGENDA\2008\Dec~i er 10\Regular\Colony Theatre Cafe_1stR~ding.Sl7M.doc / J / ) f~ /~ ~ ~ h A I ~ C~ ~ AGENDI4 ITEM Lam, ~ ('1/ 1 / V t C ~ a~T~ ~ _ ~ MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti H. Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: December 10, 2008 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 COLONY THEATER CAFE, INC. (D/B/A SEGAFREDO'S), PURSUANT TO REQUEST FOR PROPOSALS (RFP) N0.19-07/08, FOR USE OF THE FACILITY KNOWN AS THE COLONY THEATRE CAFE, LOCATED AT 1040 LINCOLN ROAD, SAID LEASE HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING RETROACTIVELY ON NOVEMBER 1, 2008, AND ENDING ON OCTOBER 31, 2011, WITH TWO (2) ADDITIONAL THREE (3) YEAR RENEWAL TERMS; FURTHER SETTING A PUBLIC HEARING ON JANUARY 28, 2009, FOR THE SECOND READING (AND FINAL APPROVAL) OF THE LEASE AGREEMENT ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOMES SUPPORTED To ensure well-maintained facilities and increase community rating of cultural activities. ANALYSIS On February 13, 2008, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 19-07/08 for use of the City-owned facility known as the Colony Theatre Cafe. Subsequently, RFP No. 19-07/08 was issued on February 14, 2008, with an opening date of April 18, 2008. On July 16, 2008, the Mayor and City Commission adopted Resolution No. 2008-26858, accepting the recommendation of the City Manager and authorizing the Administration to enter into negotiations with Colony Theater Cafe, Inc., d/b/a Segafredo for lease of the City- owned facility known as the Colony Theatre Cafe. The Administration has negotiated the attached Lease Agreement for an initial term of three (3) years, commencing on November 1, 2008 and ending on October 31, 2011, with two (2) additional three (3) year renewal terms. The Colony Theatre closed for renovations in July 2002, and did not reopen until January 2006. Due to the renovations of the theatre, the actual leased premises changed physically. The total area of the premises which will be subject to lease is one thousand three hundred seventy one (1,371) square feet, subject to BOMA survey for justification. This includes a total of four separate areas as follows; First Floor Bar and Storage Area space Commission Memorandum Colony Theatre Cafe December 10, 2008 Page 2 of 3 encompassing seven hundred sixty nine (769) sq ft, Lobby Concession and Storage Area space encompassing two hundred ninety six (296) sq ft; and Garbage Dumpster/External Storage space encompassing three hundred and six (306) sq ft. The air conditioned garbage dumpster/external storage enclosure is being constructed to provide the required dumpster for a restaurant. The Cafe currently holds an active Sidewalk Cafe permit which is nontransferable and is authorized for forty eight (48) tables and one hundred eighty three (183) seats. The Sidewalk Cafe permit is not part of the leased premises. According to the 2007 4th Quarter Retail Report by Cushman & Wakefield, landlords on South Beach's Lincoln Road began 2007 with "asking rents" in the $80 per square foot (psf) to $110 psf range only, to close the year in the $100 psf to $140 psf range for retail space. Security Deposit: Upon execution of the Agreement, the Tenant shall furnish the City with an Irrevocable Letter of Credit in lieu of a Security Deposit, as agreed to by the City. The guaranty (equal to three months base/minimum rent) will serve to secure the successful proposer's performance in accordance with the provisions of the Agreement. In the event the successful proposer fails to perform in accordance with agreement provisions, the City will present the letter of credit to the issuing bank for payment, as well as pursue any and all other legal remedies provided for in the agreement, or as may be provided by applicable law. Rent and Tenant Improvements: The City has exercised its right to negotiate the rent terms and rent increase terms pursuant to the information gathered per the property appraisal as required by City Charter, Article II Sale or Lease of Public Property, as well as past performance by the Tenant at the site over the past five years. The administration has negotiated a base of rent of $146.00 a square foot (minimum of $200,166 a year), or 6.5% of gross -whichever is greater. This represents a 46% improvement in minimum base rent as proposed by Colony Cafe, and 389% better than the current base rent amount. Previous to renovations, the premises encompassed 1,554 square feet, with the highest fee paid to the City based on aper-performance formula equivalent to $4,848.71 per month or $37.44 psf. The chart below summarizes the terms. Rent Per Square Foot Base Rent Percentage of Gross Current $37.44 Proposed $100.00 4% Negotiated $146.00 6.50% " Based upon pertormances not PSF per lease agreement Based on reported 2007 gross receipts of $4,524,997, the 6.5% would realize a total payment of $294,123, or the equivalent of $214 per square foot. The Base Rent amount will be increased annually by the Consumer Price Index (CPI), throughout the term of the Lease. Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property requires an advertised public bidding, an independent appraisal of the fair market or rental value of the property, which have been completed, and two (2) readings of the proposed lease, with the second (and final) reading followed by an advertised public hearing to obtain Commission Memorandum Colony Theatre Cafe December 1 D, 2008 Page 3 of 3 citizen input and a Planning Department analysis, to be provided as part of the second reading. CONCLUSION The Administration recommends that the Mayor and City Commission hereby approve, on first reading, a Lease Agreement (to follow) between the City and Colony Theater Cafe, Inc. (d/b/a Segafredo's), pursuant to Request For Proposals (RFP) No. 19-07/08, for use of the facility known as the Colony Theatre Cafe, located at 1040 Lincoln Road, said Lease having an initial term of three (3) years, commencing on November 1, 2008, and ending on October 31, 2011, with two (2) additional three (3) year renewal terms; further setting a public hearing on January 28, 2009 for the second reading (and final approval) of the Lease Agreement. JMG/HF/AP/ACV T:IAGENDA120081December 101RegularlColony Theatre Cafe 1stReading.MEM.doc LEASE AGREEMENT THIS LEASE AGREEMENT, (also referred to as the Lease or Agreement), made this day of , 2008, by and between the CITY OF MIAMI BEACH, a Florida municipal corporation (hereinafter referred to as "City" or "Landlord"),.and COLONY THEATER CAFE, Inc. (d/b/a SEGAFREDO), a Florida corporation (hereinafter referred to as "Tenant"). Demised Premises. 1.1 Landlord, in consideration of the rentals hereinafter reserved to be paid and of the covenants, conditions and agreements to be kept and performed by the Tenant, hereby leases, lets and demises to the Tenant, and Tenant hereby leases and hires from the Landlord, those certain premises, located in and adjacent to the Colony Theatre, 1040 Lincoln Road, Miami Beach, Florida, 33139, and more fully described as follows: Approximately 1,371 square feet delineated as follows: (a) 769 sq ft of restaurant/cafe space (the Restaurant Space); (b) 296 sq ft in the Colony Theatre lobby for use as a food and beverage concession and storage area (the Concession Area); and (c) 306 sq ft adjacent to the Colony Theatre building for dumpster/storage area (the Dumpster/Storage Area). Collectively, the areas identified in subsections (a)-(c) above shall be referred to as the Demised Premises. "The Demised Premises" are further delineated in Exhibit 1, attached and incorporated hereto. 1.2 The Restaurant Space also operates a sidewalk cafe, under a Sidewalk Cafe Permit issued pursuant to and in accordance with Sections 82-366 through 82-385 of the City of Miami Beach Code. The sidewalk cafe area is not part of the Demised Premises. 2. Term. 2.1 Initial Term. The Tenant shall be entitled to have and to hold the Demised Premises for a term of three (3) years, commencing retroactively on the 1st day of November 2008 (Commencement Date), and ending on the 31 day of October , 2011. 2.2 Renewal Term. (i) Provided Tenant is in good standing and free from default(s) hereunder, and (ii) upon written notice from Tenant, which notice shall be submitted to the City Manager no earlier than one hundred and eighty (180) days, but in any case no later than thirty (30) days, prior to the expiration of the initial term (or any renewal term, as the case maybe), this Lease may be extended for two (2) additional three (3) year renewal terms. Any extensions shall be memorialized in writing and signed by the parties hereto (with the City hereby designating the City Manager as the individual authorized to execute such extension on its behalf). 2.3 Liquor License As of the Commencement Date, the Tenant shall obtain and maintain active and current a liquor license (issued to the Colony Theater Cafe, Inc. and designated for Retail Beverage) for the Restaurant Space and Concession. Upon termination or non-renewal of this Lease, the Liquor License shall remain the property of the Tenant, and any and all liabilities relating to such liquor license shall be the responsibility of the Tenant. 3. Rent. 3.1 Base Rent: Base Rent for the Demised Premises shall begin to accrue as of November 1, 2008 (the Commencement Date), and shall be based upon the total leasable space of 1,371 square feet. 3.1.1 During the initial term of this Lease, Base Rent for the Demised Premises shall be one hundred forty six dollars ($146.00) per square foot, or a total annual Base Rent of two hundred thousand one hundred sixty six dollars and no/100 ($200,166.00); payable in monthly installments of sixteen thousand six hundred eighty dollars and 50/100 ($16,680.50). 3.1.2 Base Rent shall be due and payable on the first day of each month throughout the Term of this Agreement. 3.1.3 The Base Rent shall be increased annually, on the anniversary of the Commencement Date of the Lease, by the Consumer Price Index (CPI). CPI shall mean that consumer price index established by the Bureau of Labor Statistics of the United States Department of Labor which is entitled "Consumer Price Index for All Urban Consumers, United States City Average, all items" or in the event said Index is no longer provided by said Bureau of Labor Statistics, the index furnished by said Bureau or other agency which is most accurately and completely replaces and is the equivalent of the above-referenced Index. The Base Period shall be the Index for the calendar month of July priorto the Commencement Date month of rent in Section 2.1 (the Base Period Index). The Base Period Index shall be compared 2 with the Index for the same calendar month for each subsequent year (comparison month) for the initial term. Notwithstanding the foregoing, during the initial term the monthly Base Rent shall not be increased by more than three percent (3%) from the Base Rent payable for the immediately prior year. 3.1.4 Notwithstanding anything in this Section 3 or in the Agreement, the City reserves the right to re-negotiate the Base Rent amount concurrent with the exercise of any renewal term. Any re- negotiated Base Rent increase for a renewal term shall not exceed a maximum of the average of the immediately preceding three years CPI increase. Subsequent Base Rent increases for the second and third years of any renewal term shall be in accordance with Section 3.1.3 above 3.2 Additional Rent: In addition to the monthly Base Rent (asset faith in Section 3.1) Tenant shall also pay to Landlord throughout the Term, Additional Rent as provided below: 3.2.1 flntentionally Omittedl Intentionally Omitted. 3.2.3 Property Taxes: The Property Tax Payment (as defined in Section 11.4 hereof) shall be payable by Tenant, in accordance with Section 11 hereof. The Property Tax Payment for Property Tax Year 2008 is estimated at zero dollars ($0.00). Notwithstanding the preceding sentence, the City makes no warranty or representation, whether express or implied, that the Colony Theatre building, the Land, and/or the Demised Premises will not be subject to ad valorem (or other) taxes in subsequent years. 3.3 Sales Tax: Concurrent with payment of the monthly installment of Base Rent, Tenant shall also include any and all additional sums for all applicable sales and use tax, as now or hereafter prescribed by State, Federal or local law. 3.4 Percentage of Gross (PG) vs. Base Rent 3.4.1 In addition to minimum monthly Base Rent, Tenant shall also pay Landlord, at the end of each Lease year and on or before December 31st of each such year, a percentage of gross in the amount of six and one half percent (6.5%) of the Tenant's gross receipts (PG) for such Lease year, less the total annual Base Rent amount (for such 3 Lease year) if the PG for that year exceeds the Base Rent. The additional amount, if any, equal to the difference between PG for such Lease year and the annual Base Rent for such Lease year, shall be payable in full concurrent with the delivery to the City of the Annual Statement of Gross Receipts (required pursuant to Section 6 of this Agreement), or no later than December 31St of each Lease year during the Term. 3.4.2. The term "gross receipts" is understood to mean all income received by the Tenant from all sales made by Tenant of food, beverages and merchandise, in, on or from the Demised Premises (less returns and refunds) excluding amounts of any Federal, State, or City sales tax, or other tax, governmental imposition, assessment, charge or expense of any kind, collected by the Tenant from customers and required by law to be remitted to the taxing or other governmental authority. Notwithstanding the foregoing, "gross receipts" shall also not include any of the following: 1. gratuities to employees paid by Tenant's patrons or customers (even if included in the check to the patron or customer); 2. food and beverages served to employees of Tenant at no cost; 3. food and beverages provided by way of promotions or promo checks; or 4. a walkout (i.e. a meal served but not paid for). 3.5 Tenant agrees to pay the Base Rent, Additional Rent, and any other sum due under this Lease at the time and in the manner aforesaid, and should said rents and/or other amounts herein provided at any time remain due and unpaid for a period of fifteen (15) days after the same shall become due, the Landlord may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately, or the Landlord may pursue any other remedies enforced by law. 3.6 All rents or other payments due hereunder shall be paid to the City of Miami Beach at the following address: City of Miami Beach Finance Department c/o Revenue Manager 1700 Convention Center Drive Miami Beach, Florida 33139 4 4. Tenant Responsibilities for Utilities and Services. Tenant is solely responsible for, and shall promptly pay when due, all charges (including, without limitation, all hook-up fees) and impact fees for utility services for the Demised Premises (including without limitation, cable, gas, telephone, janitorial, garbage removal and any other utility services provided to the Demised Premises); provided however, that Tenant shall pay 50% of the water consumption of the Colony Theatre building on a monthly basis, as invoiced by the City. In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Tenant to pay for any utility services when due, the City may elect, at its sole option, to pay same, whereby Tenant agrees to promptly reimburse the City upon demand. In no event, however, shall the City be liable, whether to Tenant and/or third parties, for an interruption or failure in the supply of any utilities or services to the Demised Premises. 5. Maintenance and Examination of Records. Tenant shall maintain current, accurate, and complete financial records on an accrual basis of accounting related to its operations pursuant to this Agreement. Systems and procedures used to maintain these records shall include a system of internal controls and all accounting records shall be maintained in accordance with generally accepted accounting principles and shall be open to inspection and audit by the City Manager or his designee upon reasonable prior request and during normal business hours. Such records and accounts shall include a breakdown of gross receipts, expenses, and profit and loss statements. 6. Inspection and Audit /Annual Statement of Gross Receipts. Tenant shall maintain its financial records pertaining to its operations for a period of three (3) years after the conclusion of any Lease year and such records shall be open and available to the City Manager or his designee, as deemed necessary by the City Manager. Tenant shall maintain all such records at its principal office, currently located at 1641 Jefferson Avenue, Third Floor, Miami Beach, Florida, 33139, or, if moved to another location, all such records shall be relocated, at Tenant's expense, to a location in Miami Beach, within ten (10) days' written notice from the City Manager. The City Manager or his designee shall be entitled to audit Tenant's records pertaining to its operations as often as it deems reasonably necessary throughout the Term of this Agreement. The City shall be responsible for paying all costs associated with such audits,,unless the audit(s) reveals a deficiency of five (5%) percent- or more in Tenant's statement of gross receipts for any year or years audited, in which case the Tenant shall pay to the City, within thirty (30) days of the audit being deemed final (as specified below), the cost of the audit and a sum equal to the amount of the deficiency revealed by the audit, plus interest; provided, however, the audit shall not be deemed final until Tenant has received the audit and has had a reasonable opportunity to review the audit and discuss the audit with the City. These audits are in addition to periodic audits by the City of Resort Tax 5 collections and payments, which are performed separately. Nothing contained within this Section or in this Agreement shall preclude the City's audit rights for Resort Tax collection purposes. Tenant shall submit at the end of each Lease year, and in any event no later that December 31St of each year, an Annual Statement of Gross Receipts, in a form consistent with generally accepted accounting principles. Additionally, such Statement shall be accompanied by a report from an independent CPA firm. 7. Parking. Intentionally Omitted. 8. Security. 8.1 Concurrent with its execution of this Lease, Tenant shall provide an Irrevocable Letter of Credit, in the amount of $50,187.51, guaranteeing Tenant's faithful performance of the terms and conditions of this Agreement. The form of the Irrevocable Letter of Credit shall be as required and approved by the City Manager or his designee. Tenant shall be required to maintain said Irrevocable Letter of Credit (as approved by City Manager or his designee) in full force and effect throughout the Term. In the event that Tenant defaults in respect of any of the terms, provisions, covenants and conditions of this Agreement, including but not limited to, the payment of any rent and other amounts due hereunder, the Landlord may use, apply or retain the whole or any part. of the Irrevocable Letter of Credit for the payment of such rentals and/orother amounts in default, or any other sum which the Landlord may expend or be required to expend by reason of the Tenant's default, including any damages ordeficiency in the re-letting of all or any portion of the Demised Premises, whether such damages or deficiency may accrue or after summary proceedings or other re-entry by Landlord. 8.2 In the event that the Tenant shall fully and faithfully comply with all of the terms, provisions, covenants and conditions of this Agreement, the Irrevocable Letter of Credit shall be returned to the Tenant, upon the expiration of this Agreement and peaceful surrender of the Demised Premises. 9. Use and Possession of Demised Premises. 9.1 The Demised Premises shall be used by the Tenant solely as follows: (a) the Restaurant Space shall be open to the public daily with minimum hours of operation being from Sunday through Thursday from 11:00 a.m. to 2:00 a.m., and Friday through Saturday, from11:00 a.m. to 3:00 a.m. Upon request of 6 renters of the Colony Theatre (Renters), the Restaurant will provide green room catering within the menu items identified or a catering menu provided by Tenant; and (b) the Concession Area will provide food and beverage sales and service exclusively to Colony Theatre patrons. Tenant shall have the exclusive right to provide food and beverage sales and service to Colony Theatre patrons inside the Theatre; provided, however, that should a Renter have a sponsor which commercially produces a particular food or beverage, such food or beverage will be permitted to be distributed, and/or served, on a complimentary basis, in the lobby or the adjacent area at the entrance to the main Theatre. The Concession Area shall only be open and operate on days of performances or events in the Colony Theatre, beginning one hour prior to advertised curtain time, and closing one half hour after end of performance. Notwithstanding the above, Tenant shall also have the right to open and operate the Concession Area, and provide food and beverage service far parties or gatherings originating from the Restaurant Space, so long as Tenant does not do so more than five (5) times per Lease year; and (c) the Dumpster/Storage Area is solely for use by the Tenant to support operations of the Restaurant Area and Concession Area and is available as needed by the Tenant. The uses, and days and hours of operation set forth above, shall not otherwise be modified without prior written approval of the City Manager which shall not be unreasonably withheld. Nothing herein contained shall be construed to authorize hours contrary to the laws governing such operations. 9.2 It is understood and agreed that the Demised Premises shall be used by the Tenant only for the purposes set forth in this Lease, and for no other purposes or uses whatsoever. Tenant will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by law, ordinance or government regulation, or that may be dangerous to life, limb or property. Tenant may not commit waste on the Demised Premises, use the Demised Premises for any illegal purpose, or commit a nuisance on the Demised Premises. In the event that the Tenant uses the Demised Premises for any purposes not expressly permitted herein, then the Landlord may declare this Agreement in default and/or, without notice to Tenant, restrain such improper use by injunction or other legal action. 9.3 The Concession Area shall not be used for storage of sidewalk cafe furniture, but may be used for dry storage All cafe /restaurant materials must be stored in the Restaurant Space, behind the bar, or in the 7 Dumpster/Storage Area. 9.3.1 Renters shall not be permitted to utilize any portion of the Concession Area. Renters may only utilize the lobby or the adjacent area at the entrance to the main Theatre (as permitted by the Theatre Manager). 9.3.2 The Tenant must serve any liquor, including complimentary liquorthat is provided by Renters to patrons. The Tenant has the right to be paid a corkage fee (which shall be determined by Tenant according to industry standards, and also approved by the City Manager). 9.3.3 Notwithstanding anything in this Lease to the contrary, in no event shall Tenant be liable for any damage or injury caused by any Renters. 9.4 At all times during the Term, Tenant must maintain the Liquor License referenced in Section 2.3 in good standing and in full force and effect. 9.5 The parties acknowledge and agree that the Restaurant Space and Concession Area are intended to and shall be operated, maintained and repaired in a first class manner and otherwise consistent with the standard of the historic design of the building. The operations shall be of a level of quality equal to or greater than the Industry Standard for a first class restaurant. All food and beverages dispensed by Tenant shall be of high quality, and prepared and presented in a professional manner. No imitation, adulterated or misbranded article or items shall be sold or kept for sale and all food and beverages shall be stared and handled by Tenant in a manner consistent with standards of sanitation, preservation and purity. 9.6 From one hour prior to advertise curtain time, through one half hour after the end of a performance or event in the Theatre, the sound system in the Restaurant Space must be at an ambient level. 9.7 When a performance is in session, Restaurant Space patrons and employees must use the Restaurant Space restroom; however, at all other times, patrons may have use of the Colony Theatre restrooms. 10. Improvements. 10.1 Tenant accepts the Demised Premises in their present "AS IS" condition and may construct or cause to be constructed, such interior and exterior improvements to the Demised Premises, as reasonably necessary for it to carry on its permitted use(s); provided, however, that any plans for such improvements shall be first submitted to the City Manager for his prior received written approval, which approval, if granted at all, shall be at the City Manager's sole and absolute discretion. Additionally, any and all approved improvements shall be made at Tenant's sole cost and expense. 8 All permanent (fixed) improvements to the Demised Premises shall remain the property of the City upon termination and/or expiration of this Agreement. Upon termination and/or expiration of this Agreement, all personal property and non-permanent trade fixtures may be removed by the Tenant from the Demised Premises, provided that they can be (and are) removed without damage to the Demised Premises. Tenant will permit no liens to attach to the Demised Premises arising from, connected with, or related to the design and construction of any improvements. Moreover, such construction shall be accomplished through the use of licensed, reputable contractors who are acceptable to the City Manager. Any and all permits and or licenses required for the construction and/or installation of improvements shall be the sole cost and responsibility of Tenant. 10.2 Notwithstanding Subsection 10.1, upon termination and/or expiration of this Agreement, and at the City Manager's sole option and discretion, any or all alterations or additions made by Tenant to or in the Demised Premises shall, upon written demand by the City Manager, be promptly removed by Tenant, at its cost and expense, and Tenant further hereby agrees, in such event, to restore the Demised Premises to their original condition prior to the Commencement Date of this Agreement. 10.3 The City Manager's approval shall not be required as to improvements (which term, for purposes of this Subsection 10.3 only, shall also include improvements as necessary for Tenant's maintenance and repair of the Demised Premises) which do not exceed One Thousand ($1,000.00) Dollars, provided that the work is not structural, and provided that it is permitted by applicable law. 11. Landlord's Right of-Entry. 11.1 The Gity Manager, or his authorized agent or agents, shall have the right to enter upon the Demised Premises at all reasonable times for the purpose of inspecting same, preventing waste, making such repairs as the Landlord may consider necessary, and for the purpose of preventing fire, theft or vandalism. However, Landlord agrees that, whenever possible, the City Manager shall provide reasonable notice (whether written or verbal) to Tenant, unless the need to enter the Demised Premises is deemed an emergency by the City Manager, in his sole discretion, which if not immediately addressed could cause property damage, loss of life or limb, or other injury to persons. Nothing herein shall imply any duty or obligation on the part of the Landlord to do any work that under any provisions of this Agreement the Tenant may be required to perform, and the performance thereof by the Landlord shall not constitute a waiver of the Tenant's default. 11.2 If the Tenant shall not be personally present to open and permit entry into the Demised Premises at any time, for any reason, and any entry thereon shall be necessary or permissible, the City Manager, or his authorized 9 agents, may enter the Demised Premises by master key, or may forcibly enter the Demised Premises without rendering the Landlord or such agents liable therefore. 11.3 Tenant shall furnish the City Manager with duplicate keys to all locks including exterior and interior doors upon the Commencement Date of this Agreement. Tenant shall not change the locks to the Demised Premises without the prior written consent of the City Manager, not to be unreasonably withheld, and in the event such consent is given, Tenant shall furnish the City Manager with duplicate keys to said locks in advance of their installation. 12. Tenant's Insurance. 12.1 The Tenant shall, at its sole cost and expense, comply with all insurance requirements of the Landlord. It is agreed by the parties that the Tenant shall not occupy the Demised Premises until proof of the following insurance coverages have been furnished to, and approved by, the City's Risk Manager: 12.1.1 Comprehensive General Liability in the minimum amount of $1,000,000 per occurrence for bodily injury and property damage. The City of Miami Beach must be named as additional insured parties on this policy, subject to adjustment for inflation. 12.1.2 Workers Compensation and Employers Liability coverage in accordance with Florida statutory requirements. 12.1.3 All-Risks property and casualty insurance, written at a minimum of 80% of replacement cost value and with replacement cost endorsement, covering all of Tenant's personal property in the Demised Premises (including, without limitation, inventory, trade fixtures, floor coverings, furniture and other property removable by Tenant under the provisions of this Agreement) and all leasehold improvements installed in the Demised Premises by or on behalf of Tenant, subject to adjustment for inflation. 12.1.4 Any otherform of insurance which Landlord may reasonably, require from time to time. All policies referred to above shall: (i) be taken out with insurers licensed to do business in Florida and reasonably acceptable to Landlord; (ii) be in a form reasonably satisfactory to Landlord; (iii) be non-contributing with, and shall apply only as primary and not as excess to any other insurance available to Landlord (if any). Certificates of insurance on Landlord's standard form, or copies of such insurance policies certified by an authorized officer of Tenant's insurer as being complete and current, shall be delivered to 10 Landlord at Commencement Date. If Tenant fails to take out or to keep in force any insurance referred to in this Section 12, or should any such insurance not be approved by Landlord, and Tenant does not commence and continue to diligently cure such default within two (2) business days after written notice by Landlord to Tenant specifying the nature of such default, then Landlord has the right, without assuming any obligation in connection therewith, to effect such insurance at the sole cost of Tenant and all outlays by Landlord shall be paid by Tenant to Landlord as Additional Rent without prejudice to any other rights or remedies of Landlord under this Lease. Tenant shall not keep or use in the Premises any article which may be prohibited by any fire or casualty insurance policy in force from time to time covering the Premises. 12.1.5 Proof of these coverages must be provided by submitting original certificates of insurance. All policies must provide thirty (30) days written notice of cancellation to both the City's Risk Manager and Asset Manager at 1700 Convention Center Drive, Miami Beach, Florida, 33139. All insurance policies shall be issued by companies authorized to do business under the laws of the State of Florida and must have a rating of B+:VI or better per A.M. Best's Key Rating Guide, latest edition, and certificates are subject to the approval of the City's Risk Manager. 13. Property Taxes and Assessments. For the purposes-of this Section and other provisions of this Agreement: 13.1 The term "Property Taxes" shall mean (i) the real estate taxes, assessments, and special assessments of any kind which may be imposed upon the tax lot on which the building is constructed and (ii) any expenses incurred by Landlord in obtaining a reduction of any such taxes or assessments. 13.2 The term "Property Tax Year" shall mean the period of twelve (12) calendar months, beginning on January 1St of each year. 13.3 The term "Tenant's Proportionate Share" shall mean the ratio that the total square footage of the Demised Premises within the Colony Theatre building, not to include the adjacent Dumpster/Storage Area (1065 square feet), bears to the square footage of the space (18,822 square feet) in the entire building. 13.4 Tenant shall pay, as Additional Rent (pursuant to Section 3.2.2), for such Property Tax Year an amount ("Property Tax Payment") equal to Tenant's Proportionate Share of the Property Taxes, if any, for such Property Tax Year. If a Property Tax Year ends after the expiration or termination of the Term of this Agreement, the Property Tax Payment therefore shall be 11 prorated to correspond to that portion of such Property Tax Year occurring within the Term of this Agreement. The Property Tax Payment shall be payable by Tenant along with the rent on the first day of each month in accordance with the provisions of Section 3.3.2. The monthly Property Tax Payment shall be equivalent to 1 /12th of the estimated yearly taxes, based on the previous year's actual taxes. A copy of the tax bill(s) or other evidence of such taxes issued by the taxing authorities, together with Landlord's computation of the Property Tax Payment, will be made available to Tenant once received from the taxing authorities, if requested by Tenant. Tenant shall pay any difference in the amount between the estimated Property Taxes and the actual Property Taxes to Landlord immediately upon receipt of request for said payment from the Landlord. 14. Assignment and Subletting. Tenant shall not have the right to sublet the Demised Premises, in whole or in part. Tenant shall not have the right to assign the Demised. Premises, in whole or in part, without the prior written consent of the City, through its Mayor and City Commission, and which consent, if given at all, shall be at the sole discretion of the City Commission. 15. Maintenance and Repair. 15.1 Tenant shall maintain the Demised Premises and the fixtures and appurtenances therein, at its sole cost and expense, to the satisfaction of the Landlord, in good and sanitary order, proper working condition and repair, and consistent with the operation of a first-class quality restaurant in the Miami Dade County area. Tenant. shall make all repairs thereto as and when needed to preserve fixtures and appurtenances in good working order and condition. Landlord shall be responsible forthe maintenance of the roof, the exterior of the building, the structural, electrical and plumbing (other than plumbing surrounding any sink within the Demised Premises), and the chilled water supply system. Tenant shall also be responsible for all interior walls, and the interior and exterior of all windows and doors, as well as immediate replacement of any and all plate glass or other glass in the Demised Premises which may become broken (using glass of the same or better quality) at its sole cost and expense. 15.2 All damage or injury of any kind to the Demised Premises and/or to its fixtures, glass, appurtenances, and equipment, except damage caused by the willful misconduct or gross negligence of the Landlord, shall be the obligation of Tenant, and shall be repaired, restored or replaced promptly by Tenant at its sole cost and expense to the satisfaction of the City Manager. 15.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to the original work or installations and shall be done in good and workmanlike manner. 12 15.4 If Tenant fails to make such repairs or restorations or replacements, the same maybe made by the Landlord, at the expense of Tenant, and all sums spent and expenses incurred by Landlord shall be collectable as Additional Rent and shall be paid by Tenant within ten (10) days after rendition of a bill or statement thereof. 15.5 It shall be Tenant's obligation to insure that any renovations, repairs and/or improvements made by Tenant to the Demised Premises comply with all applicable building codes and life safety codes of governmental authorities having jurisdiction. 15.6 TENANT HEREBY ACKNOWLEDGES AND AGREES THAT THE DEMISED PREMISES ARE BEING LEASED IN THEIR PRESENT "AS IS" CONDITION. 16. Governmental Regulations. The Tenant covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City governments, and any and all of their departments and bureaus applicable to the Demised Premises and shall also comply with and fulfill all rules, orders, and regulations for the prevention of fire, all at Tenant's own cost and expense. The Tenant shall pay all costs, expenses, claims, fines, penalties, and damages that may be imposed because of Tenant's failure to comply with this Section, and shall indemnify and hold harmless the Landlord from all liability arising from each incident of non-comp)iance. 17. Liens. Tenant will not permit any mechanics, laborers, or materialman's liens to stand against the Leased premises or improvements for any labor or materials to Tenant or claimed to have been furnished to Tenant's agents, contractors, orsub-tenants, in connection with work of any character performed or claimed to have performed on said premises, or improvements by or at the direction or sufferance of the Tenant, provided however, Tenant shall have the right to contest the validity or amount of any such lien or claimed lien. In the event of such contest, Tenant shall give the Landlord. reasonable security as may be demanded by Landlord to insure payment thereof and prevent sale, foreclosure, orforfeiture of the premises or improvements by reasons of such non-payment. Such security need not exceed one and one half (1-1/2) times the amount of such lien or such claim of lien. Such security shall be posted by Tenant within ten (10) days of written notice from Landlord, or Tenant may "bond off' the lien according to statutory procedures. Tenant will immediately pay any judgment rendered with all proper cost and charges and shall have such lien released or judgment satisfied at Tenant's own expense. Tenant shall not have the right to pledge the Demised Premises and/or leasehold interest thereon as 13 security or collateral for any loan, mortgage, lien, and/or other indenture which would affect the Demised Premises, and/orthe Colony Theatre building, and/orthe Land. 18. Enforcement. Intentionally Omitted. 19. Condemnation. 19.1 If at any time during the Term of, all or any material part or portion of the building in which the Demised Premises are located, is taken, appropriated, or condemned by reason of Eminent Domain proceedings (except if the Eminent Domain proceedings are initiated by the City of Miami Beach), then this Agreement shall be terminated as of the date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by reason of this Agreement or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date., and the Tenant shall pay any and all rents, additional rents, utility charges, or other costs including excess taxes for which it is liable under the terms of this Agreement, up to the date of such taking. 19.2 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the Landlord in any such Eminent Domain proceeding, excepting, however, the Tenant shall have the right to claim and recover from the condemning authority, but not from the Landlord, such compensation as maybe separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business by reasons of the condemnation and for or on account of any cost or loss which Tenant might incur in removing Tenant's furniture and fixtures. 20. Default. 20.1 Default by Tenant: At the Landlord's option, any of the following shall constitute an Event of Default under this Agreement: 20.1.1 The Base Rent, Additional Rent, or any installment thereof is not paid promptly when and where due within fifteen (15) days of due date and if Tenant shall not cure such failure within five (5) days after receipt of written notice from Landlord specifying such default; 20.1.2 Any other payment provided for under this Agreement is not paid promptly when and where due and if Tenant shall not cure such failure within five (5) days after receipt of written notice from Landlord specifying such default; 14 20.1.3 The Demised Premises shall be deserted, abandoned, or vacated; 20.1.4 The Tenant shall fail to comply with any material term, provision, condition or covenant contained herein other than the payment of rent and shall not cure such failure within thirty (30) days after the receipt of written notice from Landlord specifying any such default; or such longer period of time acceptable to Landlord, at its sole discretion; 20.1.5 Receipt of notice of violation (including, without limitation, a violation issued pursuant to Tenant's Sidewalk Cafe Permit) from any governmental authority having jurisdiction dealing with a code, regulation, ordinance orthe like, which remains uncured within the time specified in such notice of violation; 20.1.6 Any petition is filed by or against Tenant under any section or chapter of the Bankruptcy Act, as amended, which remains pending for more than sixty (60) days, or any other proceedings now or hereafter authorized by the laws of the United States or of any state for the purpose of discharging or extending the time for payment of debts; 20.1.7 Tenant shall become insolvent; 20.1.$ Tenant shall make an assignment for benefit of creditors; 20.1.9 A receiver is appointed for Tenant by any court and shall not be dissolved within thirty (30) days thereafter; 20.1.10 The leasehold interest is levied on under execution; or 20.1.11 Tenant shall fail to take out or to keep in force any insurance referred to in Section 12 of the Agreement . 21. Rights on Default. 21.1 Rights on Default: In the event of any default by Tenant as provided herein, Landlord shall have the option to do any of the following in addition to and not in limitation of any other remedy permitted by law or by this Agreement; 21.1.1 Terminate this Agreement, in which event Tenant shall immediately surrender the Demised Premises to Landlord, but if Tenant shall fail to do so Landlord may, without further notice, and without prejudice to any other remedy Landlord may have for possession or arrearages in rent or damages for breach of 15 contract, enter upon Demised Premises and expel or remove Tenant and his effects in accordance with law, without being liable for prosecution or any claim for damages therefore, and Tenant agrees to indemnify and hold harmless Landlord for all loss and damage which Landlord may suffer by reasons of such Agreement termination, whether through inability to re-let the Demised Premises, or through decrease in rent, or otherwise. 21.1.2 Declare the entire amount of the Base Rent and Additional Rent which would become due and payable during the remainder of the Term to be due and payable immediately, in which event Tenant agrees to pay the same at once, together with all rents therefore due, at the address of Landlord, as provided in the Notices section of this Agreement; provided, however, that such payment shall not constitute a penalty, forfeiture, or liquidated damage, but shall merely constitute payment in advance of the rents for the remainder of said term and such payment shall be considered, construed and taken to be a debt provable in bankruptcy or receivership. 21.1.3 Enter the Demised Premises as the agent of Tenant, by force if necessary, without being liable to prosecution or any claim for damages therefore, remove Tenant's property there from, and re- letthe Demised Premises, or portions thereof, for such terms and upon such conditions which Landlord deems, in its sole discretion, desirable, and to receive the rents therefore, and Tenant shall pay Landlord any deficiency that may arise by reason of such re- letting, on demand at any time and from time to time at the office - of Landlord; and for-the purpose of re-letting, Landlord may (i) make any repairs, changes, alterations or additions in or to said Demised.. Premises that may be necessary or convenient; (ii) pay all costs and expenses therefore from rents resulting from re- letting; and (iii) Tenant shall pay Landlord any deficiency as aforesaid. 21.1.4 Take possession of any personal property owned by Tenant on said Demised Premises and sell the same at public or private sale, and apply same to the payment of rent due, holding the Tenant liable for the deficiency, if any. 21.1.5 It is expressly agreed and understood by and between the parties hereto that any installments of rent accruing under the provisions of this Agreement which shall not be paid when due shall bear interest at the maximum legal rate of interest per annum then prevailing in Florida from the date when the same was payable by the terms hereof, until the same shall be paid by Tenant. Any failure on Landlord's behalf to enforce this Section shall not 16 constitute a waiver of this provision with respect to future accruals of past due rent. No interest will be charged for payments made within the grace period, such grace period to be defined as within five (5) days of the due date. In addition, there will be a late charge of $50.00 for any payments submitted after the grace period. 21.1.6 Tenant shall default in making any payment of monies to any person or for any purpose as may be required hereunder, Landlord may pay such expense but Landlord shall not be obligated to do so. Tenant upon Landlord's paying such expense shall be obligated to forthwith reimburse Landlord for the amount thereof. All sums of money payable by Tenant to Landlord hereunder shall be deemed as rent for use of the Demised Premises and collectable. by Landlord from Tenant as rent, and shall be due from Tenant to Landlord on the first day of the month following the payment of the expense by Landlord. 21.1.7 Rights of the Landlord under this Agreement shall be cumulative but not restrictive to those given by law and failure on the part of the Landlord to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 21.2. Default by Landlord: The failure of Landlord to perform any of the covenants, conditions and agreements of this Agreement which are to be performed by Landlord and the continuance of such failure-for a period of thirty (30) days after notice thereof in writing. from Tenant to Landlord (which notice shall specify the respects in which Tenant contends that Landlord failed to perform any such covenant, conditions and agreements) shall constitute a default by Landlord, unless such default is one which cannot be cured within thirty (30) days because of circumstances beyond Landlord's control, and Landlord within such thirty (30) day period shall have commenced and thereafter shall continue diligently to prosecute all actions necessary to cure such defaults. However, in the event Landlord fails to perform within the initial 30 day period provided above, and such failure to perform prevents Tenant from operating its business in a customary manner and causes an undue hardship for the Tenant, then such failure to perform (regardless of circumstances beyond its control) as indicated above, shall constitute a default by Landlord. 21.3 Tenant's Rights on Default: If an event of Landlord's default shall occur, Tenant, to the fullest extent permitted by law, shall have the right and option to terminate this Lease and all of its obligations hereunder by giving written notice of such election to Landlord, and shall further have the right to pursue any actions at law or suits in equity to obtain damages resulting from Landlord's default. 17 Notwithstanding anything in this Section 21.3 or the Agreement, in the event of a default by Landlord, Tenant hereby agrees and acknowledges that in no event shall Landlord be liable for any incidental, indirect, special or consequential damages, including without limitation loss of revenue and lost profits , of Tenant which may be alleged as a result of Landlord's default. 21.4 INTENTIONALLY OMITTED. 22. Indemnity Against Costs and Charges. 22.1 The Tenant shall be liable to the Landlord for all costs and charges, expenses, reasonable attorney's fees, and damages which may be incurred or sustained by the Landlord, by reason of the Tenant's breach of any of the provisions of this Agreement. Any sums due the Landlord under the provisions of this item shall constitute a lien against the interest of the Tenant and the Demised Premises and all of Tenant's property situated thereon to the same extent and on the same conditions as delinquent rent would constitute a lien on said Premises and property. 22.2 If Tenant shall at any time be in default hereunder, and if Landlord shall deem it necessary to engage an attorney to enforce Landlord's rights and Tenant's obligations hereunder, the Tenant will reimburse the Landlord for the reasonable expenses incurred thereby, including, but not limited to, court costs and reasonable attorney's fees, whether suit be brought or not and if suit be brought, then Tenant shall be liable for expenses incurred at both the trial and appellate levels. 23. Indemnification Against Claims. 23.1 The Tenant shall indemnify and save the Landlord harmless from and against any and all claims or causes of action (whether groundless or otherwise) by or on behalf of any person, firm, or corporation, for personal injury or property damage occurring upon the Demised Premises, occasioned in whole or in part by any of the following: 23.1.1 An act or omission on the part of the Tenants, or any employee, agent, invitee, or guest, assignee or sub-tenant of the Tenant; 23.1.2 Any misuse, neglect, or unlawful use of the Demised Premises or the building in which the Demised Premises is located or any of its facilities by Tenant, or any employee, agent, invitee, or guest, assignee orsub-tenant or the Tenant, but not to include trespassers upon the Demised Premises; 23.1.3 Any breach, violation, ornon-performance of any undertaking of the Tenant under this Agreement; 18 23.1.4 Anything growing out of the use or occupancy of the Demised Premises by the Tenant or anyone holding or claiming to hold through or under this Agreement. 23.2 Tenant agrees to pay all damages to the Demised Premises or otherfacilities used in connection therewith, caused by the Tenant or any employee, guest, or invitee of the Tenant. 23.4 Force Majeure. Whenever a period of time is herein prescribed for the taking of any action by Landlord or Tenant, as applicable, Landlord or Tenant, as applicable, shall not be liable or responsible for, and there shall be excluded from the computation of such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, or governmental laws, regulations, or restrictions in the nature of a prohibition or moratorium, or any bona fide delay beyond the reasonable control of Landlord or Tenant, as applicable. The foregoing shall not apply to any payments of money due under this Lease. 24. Signs and Advertising. Without the prior written consent of Landlord, Tenant shall not permit the painting and display of any signs, plaques, lettering or advertising material of any kind on or near the Demised Premises with the exception of current signage as approved by the City Manager during prior tenancy. All signage shall comply with signage standards established by landlord and comply with all applicable building codes, and any other Municipal, County, State and Federal laws. 25. Damage to the Demised Aremises. 25.1 If the Demised Premises shall be damaged by the elements, fire, or other casualty not due,. to Tenant's negligence (hereinafter referred to as "such occurrence), but are not thereby rendered untenantable, in whole or in part, as determined by the City Manager, in his sole reasonable judgment and discretion, and such damage is covered by Landlord's self-insurance, Landlord, shall, as soon as possible after such occurrence, utilize the insurance proceeds (if any) to cause such damage to be repaired, and the rent shall not be abated. If by reason of such occurrence, the Demised Premises shall be rendered untenantable, but only in part, as determined by the City Manager in his sole reasonable judgment and discretion, and such damage is covered by Landlord's self-insurance, Landlord shall as soon as possible utilize the insurance proceeds (if any) to cause the damage to be repaired, and the rent meanwhile shall be abated proportionately as to the portion of the Demised Premises rendered untenantable; provided however, if the Demised Premises, are by reason of such occurrence, rendered more than 50% but less than 100% untenantable, as determined by the City Manager, in his sole reasonable judgment and discretion, Landlord shall promptly obtain a good faith estimate of the time required to render the 19 Demised Premises tenantable. If such time exceeds sixty (60) days, the Tenant shall have the option of canceling this Agreement, which option shall be exercised by Tenant in writing within ten (10) days of receipt of notice of same from Landlord, and the rent shall be adjusted accordingly. 25.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, and such damage is covered by Landlord's self-insurance, the Landlord shall utilize the insurance proceeds (if any) to cause such damage to be repaired, and the rent meanwhile shall be abated in whole; provided, however, that either the City Manager. or Tenant shall have the right, to be exercised by notice in writing delivered to the other party within sixty (60) days from and after such occurrence, to elect to terminate the Lease and, in that event, then this Agreement and the tenancy hereby created shall cease as of the date of said notice, and the rent shall be adjusted accordingly as of such date. 26. Quiet Enioyment. The Tenant shall enjoy quiet enjoyment of the Demised Premises and shall not be evicted or disturbed in possession of the Demised Premises so long as Tenant complies with the terms of this Agreement. 27. Waiver. 27.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of Landlord to. insist upon the strict performance of any of the conditions, covenants, terms or provisions of this Agreement, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 27.2 A waiver of any term expressed herein shall not be implied by any neglect of Landlord to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 27.3 The receipt of any sum paid by Tenant to Landlord after breach of any condition, covenant, term or provision herein contained shall not be deemed a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation, and not as rent, unless such breach be expressly waived in writing by Landlord. 28. Notices. The addresses for all notices required under this Agreement shall be as follows, or at such other address as either party shall be in writing, notify the other: 20 LANDLORD: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With copies to: Asset Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 TENANT: Colony Theater Cafe, Inc. d/b/a Segafredo 1040 Lincoln Road Miami Beach, Florida 33139 Attn: Graziano Sbroggio With copies to: Beatriz M. Capote, Esq. Capote &Capote, P.A. 799 Brickell Plaza, Suite 700 Miami, Florida 33131 All notices shall be hand delivered and a receipt requested, or by certified mail with return receipt requested, and shall be effective upon receipt. 29. Entire and Binding Agreement. This Agreement contains all of the agreements between the parties hereto, and it may not be modified in any manner other than by agreement in writing signed by all the parties hereto or their successors in interest. The terms, covenants and conditions contained. herein shall inure to the benefit of and be binding upon Landlord and Tenant and their respective successors and assigns, except as may be otherwise expressly provided in this Agreement. 30. Provisions Severable. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 31. Captions. The captions contained herein are for the convenience and reference only and shall not be deemed a part of this Agreement or construed as in any manner limiting or amplifying the terms and provisions of this Agreement to which they relate. 21 32. Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall include the singular, and the use of one gender shall include all genders. 33. Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of Florida. 34. Limitation of Liability. The Landlord desires to enter into this Agreement only if in so doing the Landlord can place a limit on Landlord's liability for any cause of action for money damages due to an alleged breach by the Landlord of this Agreement, so that its liability for any such breach never exceeds the sum of fifty thousand dollars and 00/100 ($50,000.00). Tenant hereby expresses its willingness to enterinto this Agreement with the Tenant's recovery from the Landlord for any damage action for breach of contract to be limited to a maximum amount of $50,000.00. Accordingly, and notwithstanding any other term or condition of this Agreement, Tenant hereby agrees that the Landlord shall not be liable to Tenant for damage in an amount in excess of $50,000.00 for any action or claim for breach of contract arising out of the performance ornon-performance of any obligations imposed upon the Landlord by this Agreement. Nothing contained in this Section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon Landlord's liability as set forth in Florida Statutes, Section 768.28. 35. Surrender of the Demised Premises. The Tenant shall, on or before the last day of the term herein demised, or the sooner termination thereof, peaceably and quietly leave, surrender and yield upon to the Landlord the Demised Premises, together with any and all equipment, fixtures, furnishings, .appliances or other tangible personal property, if any, located at or orr the Demised Premises and used by Tenant in the maintenance, management or operation of the Demised Premises (excluding any trade fixtures or personal property, if any, which can be removed without material injury to the Demised Premises), free of alf liens, claims and encumbrances and rights of others or broom-clean, together with all structural changes, alterations, additions, and improvements which may have been made upon the Demised Premises, in good order, condition and repair, reasonable wear and tear excepted, subject, however, to the subsequent provisions of this Section. Any property which pursuant to the provisions of this Section is removable by Tenant on or at the Demised Premises upon the termination of this Agreement and is not so removed may, at the option of the Landlord, be deemed abandoned by the Tenant, and either may be retained by the Landlord as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the Landlord may see fit. If the Demised Premises and personal property, if any, be not surrendered at the end of the term as provided in this Section, the Tenant shall make good the Landlord all damages which the Landlord shall suffer by reason thereof, and shall indemnify and hold harmless the Landlord against all claims made by any succeeding tenant or purchaser, so far as such delay is occasioned by the failure of the Tenant to surrender the Demised 22 Premises as and when herein required. 36. Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 37. Venue. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any and all the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. 38. Radon Notice. As required by Section 404.056 of Florida Statutes the following warning is given: RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in suffloient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. LANDLORD AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT THE LANDLORD AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT. 23 IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by the respective duly authorized officers and the respective corporate seals to be affixed this day of , 2008. ATTEST: LANDLORD: CITY OF MIAMI BEACH, FLORIDA Robert Parcher, CITY CLERK ATTEST: SECRETARY (Print Name) CORPORATE SEAL (affix here) BY: Matti Herrera Bower, MAYOR TENANT: Colony Theater Cafe,. Inc. d/b/a Segafredo BY: T:\AGENDA\2008\December 101Regular\Colony Theatre Cafe 2008 Lease.doc Graziano Sbroggio, PRESIDENT (Print Name) 24 APPROVED AS TO FORM 8~ LANGUAGE Exhibit 1 ~i ~~ :~ i i _..___._. . ~ m ~~ F ti `~ ~ RESTROOM ~ f , .____.~. i ._r` ~ 1 E~ f'` 3' ~n ~' ~ . i SEATING AREA. ~` ~, ~ ,. BAR AREA t , , SEAT~lNG AREA r i~ , ~ ~ "~ g. { '~ ACCESS TO THEATER LOBBY ~,', rf ~ t .._. $ " 3' MAlN ACCESS FROM LINCOLN RG. MALL Y ._ ,/ f i. 19.1' COLONY THEATER CAFE '' RESTAURANT Si~ACE . ~ ~ .. _ TOT,4I_ AREA: 769 $.F. Pape 4 of 5 ,. i - .. '',{-rxi. , . - 25 KIl~.:HtfV t,~ KITCHEN ~ ._~~ i ~I, ~ O CD~~. f (~ ,/ ' 1'/ < . ~ i ,yf ~...,« _ . . _ . ~ ~ . , W ~ ~ . _ , ~ O Cr G7 W e ~ 7 _ (J J ~ jf) Q1 W ~ ~ E ~ e ....y,»~ ~ t t I N ~' ~' ~ 'r ~ .~q i[7 tp t`h SINKS U `~` r. ~ '~ `~'. \ __/.m t __ 8~43~ ~_.~~ ~ ~ rn _~ ~ _ . ~ o r, ~ ~ STORAflE STAIRS ABOVE CQI.ONY THEATER CAFE CgNGESSION AREA TOTAL AREA. 296 SQUARE FEET =F .~, Page 5 of 5 •~:: . , . 26 Dumpster/Storage Area 27