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2016-29677 Reso RESOLUTION NO. 2016-29677 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND APPROVING, IN SUBSTANTIAL FORM, THE LEASE AGREEMENT ATTACHED TO THIS RESOLUTION, BETWEEN THE CITY AND THE MIAMI BEACH REDEVELOPMENT AGENCY (COLLECTIVELY, LANDLORD) AND COMCAST OF COLORADO / FLORIDA / MICHIGAN / NEW MEXICO / PENNSYLVANIA / WASHINGTON, LLC (TENANT), FOR THE USE OF APPROXIMATELY 375 SQUARE FEET OF CITY-OWNED PROPERTY (PREMISES), LOCATED ON THE FIRST FLOOR AT 1661 PENNSYLVANIA AVENUE (PENN GARAGE), FOR A PERIOD OF NINE (9) YEARS AND THREE HUNDRED SIXTY FOUR (364) DAYS, RETROACTIVELY COMMENCING DECEMBER 1, 2016 AND ENDING NOVEMBER 29, 2026; SAID LEASE BEING SUBJECT TO FINAL NEGOTIATION BETWEEN THE ADMINISTRATION AND TENANT, AND SUBJECT TO REVIEW AND FORM APPROVAL BY THE CITY ATTORNEY'S OFFICE; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED LEASE. WHEREAS, the Pennsylvania Garage (Penn Garage) is located at 1661 Pennsylvania Avenue and contains approximately 7,655 square feet of ground floor retail space and 560 municipal parking spaces; and WHEREAS, in an effort to provide Miami Beach residents additional telephone, television and internet service provider options, the City is working with Comcast of Colorado/Florida/Michigan/New Mexico/Pennsylvania/Washington, LLC (Tenant) to implement a new Citywide fiber and infrastructure buildout; and WHEREAS, as part of this infrastructure buildout, Tenant requires a hub location to support existing and future network requirements; and WHEREAS, Tenant has requested to lease approximately 225 square feet of garage space on the ground floor, which is currently enclosed by a chain link fence, and was previously used to store garage flood panels; as well as two (2) existing concrete pads, containing approximately 150 square feet, on the first level garage ramp, to install a backup generator and HVAC equipment; and WHEREAS, upon further discussions, the Administration negotiated a lease with Tenant, for an initial term of nine (9) years and three hundred sixty four (364) days, retroactively commencing December 1, 2016 and ending November 29, 2026; and WHEREAS, the Administration submitted the agreed upon terms and conditions to the Finance and Citywide Projects Commission Committee (FCWPC) at its October 28, 2016 meeting, and the Administration recommended approving a lease agreement with Tenant, containing the following essential terms: Premises: Storage area located on the ground floor at 1661 Pennsylvania Avenue Size: Approximately 375 square feet Term: Nine (9) years and three hundred sixty four (364) days, retroactively commencing December 1, 2016 and ending November 29, 2026. Rental Rate: $18,000 annually for initial year, with three percent (3%) annual increases Rent Increases: Three percent (3%) annual increases Construction Allowance: Tenant shall accept the Premises in "as-is" condition. Tenant shall be responsible for all costs associated with modifying the Premises to meet its requirements. WHEREAS, the Administration recommends that the City Commission approve, in substantial form, the lease agreement attached as Exhibit "A" hereto, subject to final negotiation between the Administration and Tenant, and subject to review and form approval by the City Attorney's Office. NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission, following a duly advertised public hearing, hereby waive, by 5/7ths vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City; and approve, in substantial form, the lease agreement attached to this Resolution, between the City and the Miami Beach Redevelopment Agency (collectively, Landlord) and Comcast of Colorado/Florida/Michigan/New Mexico/Pennsylvania/Washington, LLC (Tenant), for the use of approximately 375 square feet of City-owned property (Premises), located on the first floor at 1661 Pennsylvania Avenue (Penn Garage), for a period of nine (9) years and three hundred sixty four (364) days, retroactively commencing December 1, 2016 and ending November 29, 2026; said lease being subject to final negotiation between the Administration and Tenant, and subject to review and form approval by the City Attorney's Office; and further authorize the Mayor and City Clerk to execute the final negotiated lease. PASSED and ADOPTED this fiy day of &Cent 6P•✓ 2016. ATTEST: Asi - • # 01 8 ,4411111 • , / RAF . EL E. -ANA O, CITY CI ER: . HI , -;MAYOR ::INCORP ORAT' /:' t i • Cr 2,•AL7 irk if Ilan , APPROVED AS TO FORM & LANGUAGE T:AGENDA\2016\December\TCED\Comcast\Comcast RESO(11-28-16).docx & F XE UTION City Attorney p�pte CABLE EQUIPMENT ROOM LEASE THIS CABLE EQUIPMENT ROOM LEASE (this "Lease"), made this day of September, 2016, by and between the City of Miami Beach, a municipal corporation of the State of Florida having its offices at 1700 Convention Center Drive, Miami Beach, FL 33139 and the Miami Beach Redevelopment Agency, a Florida public body corporate and politic, organized and existing pursuant to Chapter 163, Part Ill, Florida Statutes (hereinafter collectively referred to as "Landlord") and COMCAST of Colorado/Florida/Michigan/New Mexico/Pennsylvania/Washington, LLC, a Colorado company, authorized to do business in Florida, with its offices at 1701 John F. Kennedy Blvd., Philadelphia, PA 19103 (hereinafter referred to as "Tenant"). WITNESSETH: ;t �(tr,� >-,Y:< t •J:.\ S}tt -4r:r• 'Ny x?'xY ,mss. w,.: .Y• a � .... WHEREAS, Landlord=is the owner in fee simple of a:xcertainl:parcel of land=(the "Land"), as more particularly described in ExhibitA hereto, including the building::and all other' improvements located thereon (the Building ), -having an address of ter Pennsylvania Garage 4,:'S.1661 Pennsylvania;Aven'ue, Miami-Beach, County of.v_Miami- 4r}y Dade, State of Florida 33139; S.•:}�.t > :: WHEREA=.'S Tenant_:r;i•:y.��pk.".p�.rc}iov id es comm-u"n icatioa`Xp.-»y s-`-.' services,.r-iz n:^+.ao.;s c..tlus dsn'a K:i. ng, but not limited .� to, cable television service pursuant to one ormore franchise agreements; . A kc•,y K-: .',a.};�,»;i:..yrr.... }.o.,..h-:s.. r :2;Afi{.. ..}.rr.�°-r.�::;a:�..m--. �3: -Y-_1ti a.•t4:=ib`�`}`•:�;;:son-:t;:;�:� PO WHEREAS, Tenant desires to lee a portionof theBuilding from Landlord for the purpose �of const sting, maintaing, and operating a communication signal procesing.and transmission facilitytogether with uses incidental thereto, in connection with its communications business ("Tenant's Uses"); and WHEREAS, Landlord and Tenant desire to enter into this Lease upon the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the mutual promises contained herein and intending to be legally bound hereby, the parties agree as follows: The above recitals are true and correct and are incorporated as part of this Lease. 1. Premises. Landlord does hereby lease to Tenant that certain portion of the Building consisting of approximately 375 square feet and known as Pennsylvania Garage Head End (the "Premises"), as depicted and more particularly described on Exhibit A hereto. Subject to the terms and conditions contained in this Lease, Tenant shall have full and unfettered access to the Premises for operation, repair and maintenance on a 24 hour a day, 365 days a year basis. Tenant may also use the Building's common areas for the purposes for which they were designed in common EXHIBIT 1 with others to whom such rights have previously been, or may hereafter be, granted. This Lease shall not be interpreted to grant Tenant_any parking privileges in connection with the parking garage facility on the Land. 2. Use. The Premises shall be used and occupied for purpose of constructing, maintaining, and operating a cable and broadband communications signal processing and transmission facility together with uses incidental thereto in accordance with applicable laws, and for no other purpose (Unapproved Use). Licensee's use of the Premises for an Unapproved Use shall be considered a material default under this Lease, and should Tenant fail to cure said default within thirty (30) days written notice from the Landlord, the Landlord shall be entitled to terminate this Lease. Additionally, notwithstanding any other terms of this Lese, the City shall be entitled to seek immediate relief, whether at law or equity, to restrain such Unapproved Use 3. Term. The term of this Lease (the "Term") shall commence on December 1, 2016 (the "Commencement Date"), and continue for a period of Nine (9) Years and three hundred and Sixty-Four (364) days expiring on November 29, 2026. 4. Renewals. Tenant shall not have the right to extend the term of this Lease. 5. Rent. A. Tenant shall pay to Landlord an initial annual rent of Eighteen Thousand Dollars ($18,000) ("Rent") payable in advanced monthly installments of One Thousand Five Hundred Dollars ($1,500) on the first day of each month during the Term of this Lease, plus any applicable sales tax. B. Commencing on the first day of each annual anniversary day of the Commencement Date, the annual Rent shall be increased by 3% of the annual Rent due for the preceding year. 6. Cable License. Subject to Tenant securing the prior written approval of Landlord, in its proprietary capacity, and securing all applicable governmental approvals, Landlord hereby grants to Tenant, during the Term of this Lease, a license to install, access, maintain, replace, repair, and remove, on a 24 hour a day, 365 days a year basis, Tenant's cable (including coaxial and fiber) and communications wiring and related equipment (collectively, the "Cable") in, over, across and through the Land and Building to the Premises. Notwithstanding any provision to the contrary in this Lease, Landlord acknowledges and agrees that Tenant may directly install and maintain the Cable or, subject to the prior written approval of the City Manager, in the City Manager's reasonable discretion, subcontract the installation, maintenance, or removal of the Cable to a qualified subcontractor. All work for the installation and maintenance of the Cable shall be performed at Tenant's sole cost and expense. 2 7. Utilities/Tenant Improvements/Taxes. A. During the terms of this Lease, and subject to Tenant securing the prior written approval of Landlord, in its proprietary capacity, and all required governmental approvals, Tenant shall bring electric, telephone, and other utility services (utility services) to the Premises, as may be required in connection with the Tenant's Use, all of which utility services are to be connected, installed and maintained at Tenant's sole cost and expense. Landlord hereby agrees to cooperate with Tenant in connection with granting Tenant any easements which may be necessary to enable the utility companies to provide such utility service. The location of said easements shall be subject to the written approval of Landlord, in its proprietary capacity, and any required governmental approvals. B. Landlord hereby grants to Tenant during the Term of this Lease, the right to install, access and maintain an emergency generator and related above-ground fuel storage tank (collectively, the "Generator Equipment") in order to provide a source of emergency power for Tenant's operations at the Premises. Such installation shall constitute a Tenant Improvement (as defined in Section 9), such that the terms and conditions of Section 9 shall apply thereto. Tenant shall be responsible for compliance with all laws applicable to the installation, maintenance, use and removal of the Generator Equipment. Tenant will immediately report to Landlord any spill or release of fuel or hazardous substances and any citations or notices of violation and will provide Landlord with copies thereof. Such notification will not relieve Tenant from its obligations to notify governmental agencies. Any cleanup or remediation of any spill or release with respect to the Generator Equipment required by any governmental agency will be completed by Tenant in accordance with all applicable laws. Landlord may make periodic inspections to ensure regulatory compliance and the proper operation, maintenance and repair of the Generator Equipment. Tenant shall give to Landlord notice of any notices which Tenant receives from third parties that any of the Generator Equipment is or may be in violation of any law. Tenant shall pay all taxes of any kind or nature whatsoever levied upon the Generator Equipment/Tenant Improvements or Tenant's Use, and all licensing fees, franchise taxes and other charges, expenses and other costs of any nature whatsoever relating to the construction, ownership, maintenance and operation of the Generator Equipment/Tenant Improvements. Within ten (10) days after expiration or termination of this Lease, Tenant, at Tenant's sole cost and expense, shall remove any Generator Equipment installed pursuant to this Lease. 8. Maintenance. Tenant shall be responsible, at its sole expense, for the interior maintenance of the Premises. Landlord agrees to maintain in good order and repair and make all necessary repairs and replacements to the exterior walls, windows and doors, roof, floor slabs, structural elements, the heating, plumbing, ventilating, air- conditioning, electrical and mechanical systems of the Building, all glass, and all common areas, except for those repairs and replacements required because of the negligent acts or omissions of Tenant or Tenant's agents, officers, contractors, or 3 employees. Landlord shall keep the sidewalks, driveways, and parking areas lighted and free of snow, ice and debris. 9. Alterations. Tenant shall not make any alterations or improvements (Tenant Improvements) to the Premises except in accordance with plans and specifications first approved by Landlord.. All Tenant Improvements shall be deemed part of the Premises. At the end of the Term or earlier termination of this Lease, the Tenant Improvements shall not be removed unless Landlord directs Tenant to remove said Tenant Improvement. No Tenant Improvements shall be undertaken by Tenant until it shall have first secured the City Manager's written approval and aid for all required permits and authorizations of all municipal departments and governmental subdivisions having jurisdiction. Any approved Tenant Improvements shall be made at Tenant's sole expense, in a good and workmanlike manner, and in compliance with all applicable permits, authorizations, Building and zoning laws and with all other requirements of all governmental authorities having jurisdiction. Tenant shall furnish a performance bond not less than 100% of the construction cost of the Tenant Improvements. Tenant shall furnish construction cost estimates prepared and certified by Tenant's engineer prior to Landlord's approval of the plans. 10. Surrender. Upon expiration or earlier termination of this Lease, Tenant shall surrender the Premises free and clear of all Tenant Improvements which the City Manager, in the City Manager's sole discretion, directs Tenant to remove (Surrendered Tenant Improvements). Tenant shall remove, at its sole cost and expense, all Surrendered Tenant Improvements within thirty (30) days following termination or expiration of the Term and restore all or any part of the Premises to the same condition as originally received by Tenant (ordinary wear and tear excepted). Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of this Lease. Tenant's failure to remove all Surrendered Tenant Improvements and to restore all or any part of the Premises to its original condition within the thirty (30) day period shall constitute trespass by the Tenant, and may be prosecuted as such. In addition, Tenant shall pay to Landlord One Thousand ($1,000.00) Dollars per day as liquidated damages for such trespass and holding over. 11. Compliance. Tenant shall at all times comply with the requirements of all constituted public authorities and with the terms of any state or federal statute or local ordinance or regulation applicable to the Premises for Tenant's use thereof. 12. Assignment/Subcontract. Tenant shall not assign this Lease nor sublet all or any part of the Premises without the prior written consent of the Landlord, which consent, if provided at all, shall be in Landlord's sole discretion. A direct or indirect change in the majority interest of Tenant (51% or more) of equity ownership, partnership interest, or control of Tenant or transfer upon partnership or corporate dissolution of Tenant shall constitute an assignment hereunder. Notwithstanding anything to the contrary in this Lease, Tenant may subcontract the maintenance and repair obligations 4 in connection with Tenant's Use, without the written consent of the Landlord so long as Tenant retains exclusive control over Tenant's Uses. . 13. Indemnification. In consideration of a separate and specific consideration of Ten ($10.00) Dollars and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Tenant shall indemnify, hold harmless and defend the Landlord, its officials, directors, members, employees, contractors, agents, and servants from and against any and all actions (whether at law or inequity), claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees and costs, for personal, economic or bodily injury, wrongful death, loss of or damage to the Property, which may arise or be alleged to have arisen from: (1) wholly or in part from the negligent acts, errors, omissions or other misconduct of Tenant, its officers, director, members, employees, agents, contractors, subcontractors, or any other person or entity acting under Tenant's control or supervision; (2) Tenant's breach of the terms of this Lease or its representations and warranties herein; (3) Tenant's Uses under this Lease; or (4) the use of the Premises by Tenant. To that extent, Tenant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the Landlord in the defense of such claims and losses, including appeals. 14. Insurance and Taxes. (Subject to review/approval by Risk Manager) A. During the term of this Lease and any extension hereof, Tenant shall obtain and maintain commercial general liability insurance with a minimum single limit for personal injury of One Million Dollars ($1,000,000.00) for any occurrence and Two Hundred Fifty Thousand Dollars ($250,000.00) for property damage for any one occurrence. Such insurance shall name Landlord as an additional insured. B. Property Insurance against all risks of loss to any tenant improvements or betterments, including tenant's personal property, at full replacement cost with no coinsurance penalty provision. C. In addition to, and not in lieu of the insurance required to be maintained by Tenant, Landlord shall obtain and keep in effect throughout the term of this Lease and any extension hereof, an all risk insurance policy or policies in the name of Landlord, insuring against loss or damage to the Building in an amount equal to the replacement cost thereof. D. All insurance policies carried by either party covering the Premises shall expressly permit that party to waive any right on the part of the insurer to make any claim against the other party. Landlord and Tenant each hereby waive all claims and rights against the other and their respective partners, agents, officers and employees, for any death or injury to persons or damage or destruction of property or business which shall occur on or about the Premises and shall result from any of the perils insured under any policies of insurance maintained by Landlord or Tenant, regardless of cause, including the negligence and intentional wrongdoing of either party and their respective partners, agents, officers and employees. 5 E. Landlord shall continue paying all real property taxes assessed upon the Land and the Building (together, the "Property"). Tenant shall pay any increase in real estate taxes assessed upon the Property solely as a result of Tenant's improvements and/or Tenant Uses in the Premises and all personal property taxes assessed upon Tenant's improvements in the Premise. 15. Inspection. Landlord or its agents or employees authorized by the Landlord shall have the right upon at least 24 hours advance notice (except in emergencies) to inspect the Premises and to enter the Premises at all reasonable times not interfering with the operation by the Tenant of its business upon the Premises for the purpose of inspecting the Premises. In addition thereto, Landlord may, at reasonable times, enter upon the Premises to show the same to prospective buyers of the entire Building. Furthermore, Landlord may, at reasonable times, enter upon the Premises to show Premises to prospective Tenants within a period of three (3) months prior to the expiration of the basic term or any extension thereof. 16. Default. The following events shall be considered "Events of Default": A. The failure of the Tenant to pay any installment of Rent or any other sum payable by Tenant hereunder within ten (10) days after the same shall become due and payable. Payments of rent received by the Landlord beyond ten (10) days when it is due shall be subject to a five percent (5%) late payment charge calculated against the rent and additional rent paid late. Additionally, any payment due under this Lease which is not received within five (5) days from receipt of written notice, shall approve interest at the highest rate permitted by law. B. The failure to perform, violation or breach by the Tenant of any of the terms or conditions hereof, which failure, violation or breach shall continue unremedied by the Tenant for a period of thirty (30) days after written notice thereof shall have been given to the Tenant by the Landlord, or for such additional period as may be necessary to remedy such failure, violation or breach with due diligence. C. The insolvency of Tenant as evidenced by an assignment by Tenant for the benefit of creditors, a petition in bankruptcy being filed by the Tenant, the adjudication of Tenant as a bankrupt or the filing against Tenant of a petition for the appointment of a receiver, which petition is not dismissed within sixty (60) days. 18. Effect of An Event of Default. In the event of any default hereunder by Tenant, then without prejudice to any other rights which it has pursuant to this Lease or at law or in equity, Landlord shall have the following rights and remedies, which are cumulative and not alternative: (A) Landlord may cancel this Lease by notice to Tenant and retake possession of the Premises for Landlord's account, or may terminate Tenant's right to possession of the Premises without terminating this Lease. In either event, Tenant shall then quit and surrender the Premises to Landlord. If Landlord terminates Tenant's right 6 to possession of the Premises without terminating this Lease, Tenant's liability under all of the provisions of this Lease shall continue notwithstanding any expiration and surrender, or any re-entry, repossession, or disposition hereunder. (B) If Landlord terminates Tenant's right to possession of the Premises without terminating this Lease under subsection (A) above, Tenant shall remain liable (in addition to accrued liabilities) to the extent legally permissible for all rent and all of the charges Tenant would have been required to pay until the date this Lease would have expired had such cancellation not occurred. Tenant's liability for rent shall continue notwithstanding re-entry or repossession of the Premises by Landlord. In addition to the foregoing, Tenant shall pay to Landlord such sums as the court which has jurisdiction thereover may adjudge as reasonable attorneys' fees with respect to any successful lawsuit or action instituted by Landlord to enforce the provisions of this Lease. (C) Landlord may relet all or any part of the Premises for all or any part of the unexpired portion of the Term of this Lease or for any longer period, and may accept any rent then attainable; grant any concessions of rent, and agree to paint or make any special repairs, alterations, and decorations for any new tenant as it may deem advisable in its sole and absolute discretion. Landlord shall be under no obligation to relet or to attempt to relet the Premises. (D) If Landlord terminates Tenant's right to possession of the Premises without terminating this Lease under subsection (A) above, and Landlord so elects, the rent hereunder shall be accelerated and Tenant shall pay Landlord damages in the amount of any and all sums which would have been due for the remainder of the Term. Prior to or following payment in full by Tenant of such discounted sum promptly upon demand, Landlord shall use good faith efforts to relet the Premises. If Landlord receives consideration as a result of a reletting of the Premises relating to the same time period for which Tenant has paid accelerated rent, such consideration actually received by Landlord, less any and all of Landlord 's cost of repairs, alterations, additions, redecorating, and other expenses in connection with such reletting of the Premises, shall be a credit against such discounted sum, and such discounted sum shall be reduced if not yet paid by Tenant as called for herein, or if Tenant has paid such discounted sum, such credited amount shall be repaid to Tenant by Landlord (provided said credit shall not exceed the accelerated amount). (E) Landlord may remedy or attempt to remedy any default of Tenant under this Lease for the account of Tenant and to enter upon the Premises for such purposes. No notice of Landlord's intention to perform such covenants need be given Tenant unless expressly required by this Lease. Landlord shall not be liable to Tenant for any loss or damage caused by the reasonable acts of Landlord in remedying or attempting to remedy such default and Tenant shall pay to Landlord all expenses incurred by Landlord in connection with remedying or attempting to remedy such default. Any expenses incurred by Landlord shall accrue interest from the date of payment by Landlord until repaid by Tenant at the highest rate permitted by law. 7 9.3 Costs. If Landlord or Tenant has to enforce the terms of this Lease, the prevailing party shall be entitled to collect all costs incurred by the prevailing party, including attorneys' fees and costs at all tribunal levels. In addition, upon any default by Tenant, Tenant shall be also liable to Landlord for the expenses to which Landlord may be put in re-entering the Premises; repossessing the Premises; painting, altering, or dividing the Premises; combining the Premises with an adjacent space for any new tenant; putting the Premises in proper repair; protecting and preserving the Premises by placing watchmen and caretakers therein; reletting the Premises (including attorneys' fees and disbursements, marshall's fees, and brokerage fees, in so doing); and any other expenses reasonably incurred by Landlord. 9.4 Additional Remedies; Waiver. The rights and remedies of Landlord set forth herein shall be in addition to any other right and remedy now and hereinafter provided by law. All rights and remedies shall be cumulative and non-exclusive of each other. No delay or omission by Landlord in exercising a right or remedy shall exhaust or impair the same or constitute a waiver of, or acquiescence to, a default. 19. Casualty and Eminent Domain. A. If any part of the Building or the Premises are damaged by fire or other casualty so that substantial reconstruction of either will be required, Landlord or Tenant may terminate this Lease on the date set forth in a notice given to the other party within 30 days after the damage occurs, such termination date to be not later than 30 days after such 30 days. If this Lease is so terminated, Rent shall be abated as of the date of such damage. If this Lease does not so terminate, then within 45 days after such damage, Landlord shall proceed with diligence to restore the Building and the Premises to substantially the same condition in which they were immediately prior to the casualty. Tenant may terminate this Lease if restoration has not been substantially completed within 90 days after such damage occurred. Rent shall be abated fairly according to the nature and extent of the damages until restoration of the Premises is substantially complete. B. If, by exercise of the right of eminent domain (a "Taking"), all or a substantial portion of the Premises are taken, this Lease shall end upon the earlier of the vesting of title in the condemning authority or the taking of possession by the condemning authority (in either case the "Ending Date"). If, after a Taking, a substantial portion of the Premises remains so that, in Tenant's reasonable estimation, the Premises may be used for the purposes permitted under this Lease: (i) this Lease will end on the Ending Date as to the part of the Premises so taken; (ii) prepaid Rent will be appropriately allocated to the part of the Premises which is taken and prorated to the Ending Date; (iii) beginning on the day after the Ending Date, Rent for so much of the Premises as remains will be reduced in the proportion of the floor area remaining after the Taking to the floor area before the Taking; (iv) at its cost, Landlord will restore so much of the exterior of the Premises as remains to a sound architectural unit substantially suitable for the purposes for which it was used immediately prior to the Taking; and (v) at its cost, Tenant shall restore all of the Tenant Improvements (excluding the exterior enclosure of the Leased Premises). All awards 8 from any Taking shall be allocated to Landlord. Unless prohibited by applicable law, Tenant may prosecute its own claim by separate proceedings against the condemning authority for damages legally due to it (such as the loss of fixtures which Tenant was entitled to remove and moving expenses). 20. Signage. Tenant shall have the right (but not the obligation) to display a sign(s) on the Premises subject to the approval of the Landlord and any governmental approvals required by law. 21. Notices. All notices or demands required or permitted to be given or served pursuant to this Lease shall be deemed to have been given or served only if in writing forwarded by (a) hand delivery, (b) certified mail, postage prepaid, or (c) overnight courier, and addressed as follows: To Landlord at: City of Miami Beach Attn: 1700 Convention Center Drive, Miami Beach, FL 33139 To Tenant at: Comcast of Colorado/Florida/Michigan/New Mexico/Pennsylvania/Washington, LLC Attn: Vice President of Finance 1100 Northpoint Parkway, Suite 100 West Palm Beach, FL 33407 With a copy to: Comcast Cable Communications, LLC One Comcast Center 1701 John F. Kennedy Boulevard Philadelphia, PA 19103-2838 Attention : General Counsel Notices shall be effective on (a) the date of hand delivery, (b) one (1) business day after deposit with a national courier service, or (c) three (3) business days after deposit in the U.S. Mail. Inability to deliver due to change of address for which no notice was given or refusal to accept delivery shall be deemed delivery hereunder. Each party shall have the right to designate by notice in writing any other address to which such party's notice is to be sent. 9 22. Quiet Enjoyment. Landlord covenants that Landlord has the right and authority to enter into this Lease, and that Tenant may peaceably and quietly have, hold and enjoy the Premises provided that Tenant performs and fulfills all the terms, covenants and conditions of this Lease. 23. Termination by Tenant. This Lease may be terminated by Tenant without any penalty or further liability, upon one hundred twenty (120) days written notice to Landlord upon the occurrence of any of the following: (a) the Premises is or becomes unacceptable under the Tenant's design or engineering specifications for Tenant's facilities or communications systems; or (b) Tenant determines that the Premises are not appropriate for Tenant's operations for economic reasons; or (c) Tenant's franchise to operate its cable system is revoked or suspended. 24. Landlord's right to Terminate. A. City's Right to Terminate for Failure to Operate. Notwithstanding anything contained herein to the contrary, Landlord may terminate this Lease, without any liability to the Landlord, upon written notice to Tenant if: (1) Tenant has not secured a building permit to build the Tenant Improvements within (_) days from the Effective Date; (2) the Tenant Improvements have not been constructed and Tenant's Uses are not operational within (_ ) months from the Effective Date; or (3) Tenant ceases to operate the Tenant Uses continuously for a period of thirty (30) days or more. B. City's Right to Terminate for Convenience. Landlord may also, through its City Manager, and for its convenience and without cause, terminate the Lease at any time during the Term by providing Tenant with written notice, a one (1) year in advance. In such case, Tenant shall be entitled to an early termination fee equal to the total upfront investment which Tenant made in connection with the construction and installation of the Tenant Improvements at the Premises, less the net earned income which Tenant has received pursuant to the privileges granted by this Lease and in connection with Tenant's Uses, from the Effective Date through the effective date of termination. Net earned income shall be determined by taking the total gross revenues and deducting all expenses permitted under acceptable accounting principles, excluding any depreciation, amortization, depletion, dividends and/or distribution expenses. 25. Florida Public Records Law. (A) Tenant shall comply with Florida Public Records law under Chapter 119, Florida Statutes, as may be amended from time to time. Records made or received in connection with this Agreement are public records under Florida law, as defined in Section 119.011(12), Florida Statutes. (B) Pursuant to Section 119.0701 of the Florida Statutes, if the Tenant meets the definition of "Contractor" as defined in Section 119.0701(1)(a), the Contractor shall: 10 (1) Keep and maintain public records required by the City to perform the Tenant Uses; (2) Upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes or as otherwise provided by law; (3) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed, except as authorized by law, for the duration of the contract term and following completion of the Agreement if the Contractor does not transfer the records to the City; (4) Upon completion of the Agreement, transfer, at no cost to the City, all public records in possession of the Contractor or keep and maintain public records required by the City to perform the Tenant Uses. If the Contractor transfers all public records to the City upon completion of the Agreement, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Contractor keeps and maintains public records upon completion of the Agreement, the Contractor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City. (C) REQUEST FOR RECORDS; NONCOMPLIANCE.— (1) A request to inspect or copy public records relating to the City's contract must be made directly to the City. If the City does not possess the requested records, the City shall immediately notify the Contractor of the request, and the Contractor must provide the records to the City or allow the records to be inspected or copied within a reasonable time. (2) Contractor's failure to comply with the City's request for records shall constitute a breach of this Agreement, and the City, at its sole discretion, may: (1) unilaterally terminate the Agreement; (2) avail itself of the remedies set forth under the Agreement; and/or (3) avail itself of any available remedies at law or in equity. (3) A Contractor who fails to provide the public records to the City within a reasonable time may be subject to penalties under s. 119.10. (D) CIVIL ACTION.— (1) If a civil action is filed against a Contractor to compel production of public records relating to the City's contract, the court shall assess and award against the Contractor the reasonable costs of enforcement, including reasonable attorney fees, if: a. The court determines that the Contractor unlawfully refused to comply 11 with the public records request within a reasonable time; and b. At least 8 business days before filing the action, the plaintiff provided written notice of the public records request, including a statement that the Contractor has not complied with the request, to the City and to the Contractor. (2) A notice complies with subparagraph (1)(b) if it is sent to the City's custodian of public records and to the Contractor at the Contractor's address listed on its contract with the City or to the Contractor's registered agent. Such notices must be sent by common carrier delivery service or by registered, Global Express Guaranteed, or certified mail, with postage or shipping paid by the sender and with evidence of delivery, which may be in an electronic format. (3) A Contractor who complies with a public records request within 8 business days after the notice is sent is not liable for the reasonable costs of enforcement. (E) IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT: CITY OF MIAMI BEACH ATTENTION: RAFAEL E. GRANADO, CITY CLERK 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 E-MAIL: RAFAELGRANADO(UMIAMIBEACHFL.GOV PHONE: 305-673-7411 26. Performance Bond Or Alternate Security. Tenant shall, within thirty (30) days from Effective Date, furnish to the City Manager or Structure Manager a Performance Bond in the penal sum stated below for the payment of which Tenant shall bind itself for the faithful performance of the terms and conditions of this Lease. A Performance Bond, in the amount of ($ ) Dollars, shall be provided by the Licensee in faithful observance of this Agreement. A cash deposit, irrevocable letter of credit, or certificate of deposit may also suffice, as determined by the City Manager or Structure Manager, in his sole and reasonable discretion. The form of the Performance Bond or alternate security shall be approved by the City's Chief Financial Officer. In the event that a Certificate of Deposit is approved, it shall be a ($ ) Dollar one-year Certificate of Deposit in favor of the City, which shall be automatically renewed, the original of which shall be held by the City's Chief Financial Officer. Tenant shall be so required to maintain said Performance Bond or alternate security in full force and effect throughout the Term of this Agreement. Tenant shall have an affirmative duty to notify the City Manager or Structure Manager, in writing, in the event said Performance Bond or alternate security lapses or otherwise expires. All interest that accrues in connection with any financial 12 instrument or sum of money referenced above shall be the property of Licensee, except in an event of default, in which case the City shall be entitled to all interest that accrues after the date of default. 27. No Discrimination. Tenant hereby agrees to comply with City of Miami Beach Human Rights Ordinance, as codified in Chapter 62 of the City Code, as may be amended from time to time, prohibiting discrimination in employment, housing, public accommodations, or public services, on the basis of actual or perceived race, color, national origin, religion, sex, intersexuality, sexual orientation, gender identity, familial and marital status, age, ancestry, height, weight, domestic partner status, labor organization membership, familial situation, political affiliation, or disability. 28. Hazardous Materials. Tenant's right to use the Premises is strictly on an "As Is" basis with all faults. Tenant shall not cause or permit the escape, disposal or release of any Hazardous Materials on or from the Property in any manner prohibited by Law. Tenant shall indemnify and hold the City harmless from any loss, damage, cost, or expense of the City, including, without limitation, reasonable attorney's fees, incurred as a result of, arising from, or connected with the placement by Licensee of any "hazardous substance" or "petroleum products" on, under, in or upon the Property (including, without limitation, the Licensed Structure), as those terms are defined by applicable Federal and State Statute, or any environmental rules and environmental regulations promulgated thereunder; provided, however, that Licensee shall have no liability in the event of the willful misconduct or gross negligence of the City, its agents, servants or employees. The provisions of this subsection shall survive the termination or earlier expiration of this Agreement. 29. Miscellaneous. A. The topic headings preceding the text of the various sections of this Lease are inserted solely for convenience of the parties, and shall not constitute a part of this Lease, nor shall they affect its meaning, construction or effect. B. This Lease shall be binding upon Landlord and Tenant, their respective successors and assigns. C. Landlord shall not be in default unless Tenant gives Landlord a notice of the default and Landlord fails to cure the default within 30 days. After such time, Tenant shall have the right, but not the obligation, to cure such default, and Landlord shall reimburse Tenant on demand for all costs incurred by Tenant in performing such obligation, as well as (b) all other remedies at law and/or equity. D. In the event that Landlord or Tenant is delayed in performing any act because of acts of God, strikes, lockouts, labor troubles, inability to procure materials, failure of power, riots and insurrection, acts of the public enemy, wars, earthquakes, hurricanes and other natural disasters, fires, explosions, any act, failure to act or default of the other party to this Lease or any other reason beyond the control of any party to 13 this Lease, then such performance shall be excused for the period of the delay and the period for the performance of any such act shall be extended for an equivalent period. E. Tenant and Landlord each warrant that it has not dealt with any broker in connection with this Lease. Tenant and Landlord each agree to indemnify the other for all loss, cost, damage, or expense incurred by the other for any claim by any other broker regarding this Lease. All fees payable to Brokers on account of this Lease shall be paid by Landlord. D. Governing Law/Waiver of Jury Trial. This Lease shall be governed by and interpreted according to the laws of the state of Florida. This Lease 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. LANDLORD AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT LANDLORD AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS LEASE. IN WITNESS WHEREOF, the parties have executed this Lease Agreement the day and year first above written. LANDLORD: City of Miami Beach By: Name: Title: TENANT: COMCAST of Colorado/Florida/Michigan/ New Mexico/ Pennsylvania/Washington, LLC. By: Name: Title: 14 EXHIBIT A Legal Description/Plan of the Premises 15 Resolutions - R7 B MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: December 14, 2016 1:35 p.m. Public Hearing SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A NEW LEASE AGREEMENT, SUBSTANTIALLY IN THE FORM ATTACHED TO THIS RESOLUTION AS EXHIBIT "A", BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI BEACH REDEVELOPMENT AGENCY (COLLECTIVELY, LANDLORD) AND COMCAST OF COLORADO / FLORIDA / MICHIGAN / NEW MEXICO / PENNSYLVANIA / WASHINGTON, LLC (TENANT), FOR THE USE OF APPROXIMATELY 375 SQUARE FEET OF CITY-OWNED PROPERTY(PREMISES), LOCATED ON THE FIRST FLOOR AT 1661 PENNSYLVANIA AVENUE (PENN GARAGE), MIAMI BEACH, FLORIDA, FOR A PERIOD OF NINE (9) YEARS AND THREE HUNDRED SIXTY FOUR (364) DAYS, RETROACTIVELY COMMENCING DECEMBER 1, 2016 AND ENDING NOVEMBER 30, 2026. RECOMMENDATION Adopt the Resolution. BACKGROUND The Pennsylvania Garage (Penn Garage) is located at 1661 Pennsylvania Avenue and contains approximately 7,655 square feet of ground floor retail space and 560 municipal parking spaces. The retail space was vacated by Oolite restaurant last year and is currently vacant. While the convention center is being renovated, the City has agreed to provide temporary office space to the Miami Beach Chamber of Commerce for its Visitor Center and the balance of the retail space will likely be occupied by City departments. ANALYSIS In an effort to provide Miami Beach residents additional telephone, television and intemet service provider options, the City is working with Comcast of Colorado/Florida/Michigan/New Mexico/Pennsylvania/Washington, LLC (Tenant) to implement a new Citywide fiber and infrastructure buildout. This new buildout will provide Miami Beach residents with Comcast's most advanced services. As part of this infrastructure buildout, Tenant requires a hub location to support existing and future network requirements. Tenant is bringing its fiber from the mainland to Miami Beach via the Page 674 of 1191 Venetian Causeway. The City and Tenant identified the Penn Garage as a suitable location due to its proximity to the Venetian Causeway/17th Street corridor. Tenant has requested to lease approximately 225 square feet of garage space on the ground floor, as depicted on Exhibit"B" (Floor Plan), attached hereto. This area is currently enclosed by a chain link fence, as depicted on Exhibit "B-1" (Enclosure), attached hereto, and was previously used to store garage flood panels. The flood panels are currently stored in and interior storage room. Additionally, Tenant has requested to utilize two (2) existing concrete pads, containing approximately 150 square feet, on the first level garage ramp, as depicted in Exhibit "C" (Equipment Pads)attached hereto, to install a backup generator and HVAC equipment. The proposed basic terms and conditions of the new leases are as follows: Premises : Storage area located on the ground floor at 1661 Pennsylvania Avenue Size: Approximately 375 square feet Term: Nine (9) years and three hundred sixty four (364) days, retroactively commencing December 1, 2016 and ending November 30, 2026. Rental Rate: $18,000 annually, with three percent(3%)annual increases Rent Increases: Three percent (3%)annual increases Construction Allowance: Tenant shall accept the Premises in "as-is" condition. Tenant shall be responsible for all costs associated with modifying the Premises to meet its requirements. FINANCE & CITYWIDE PROJECTS COMMITTEE At the October 28, 2016 Finance and Citywide Projects Committee ("FCWPC") meeting, the Administration presented the terms and conditions set forth above. The FCWPC considered this matter and recommended approving a new lease with Comcast._ CONCLUSION The Administration recommends that the Mayor and City Commission adopt the Resolution in favor of accepting the recommendation of the FCWPC. Legislative Tracking Tourism, Culture and Economic Development ATTACHMENTS: Description ❑ Exhibit A- DRAFT Lease Agreement Page 675 of 1191 ❑ Exhibit B - Floor Plan ❑ Exhibit B-1 - Enclosure ❑ Exhibit C - Equipment Pads ❑ RESO (11-28-16) Page 676 of 1191