LTC 01-2002
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CITY OF MIAMI BEACH
1700 Convention Center Drive, Miami Beach, Fl. 33139
http:\\cI.mlaml-beach.f1.us
Office of the City Manager
Telephone (305) 673.7010
Facsimile (305) 673.7782
L.T.C. NO. .
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LETTER TO COMMISSION
December 28,2001
TO:
FROM:
Mayor and Members of the City Commission
Jorge M. Gonzalez, City Manager ~~
Anchor Shops - Rent AbatemenP
SUBJECT:
During the past several months, the new Anchor Shop~ tenants located along 16th Street,
were impacted by a series of near complete street closures required to perform
electrical and other utility work related to the Lincoln Place project on the corner of
Washington Avenue and 16th Street. Additionally, like many businesses in this country,
the tenants suffered significant hardship as a result of the devastating events of
September 11. The affected Tenants are Adolfo Dominguez and Art Connection Swiss
Design. Both Tenants executed Leases in the Summer, 2000, and have invested
significant money and time with their respective build-outs. Art Connection has also been
affected by roof leaks that are currently under repair by Murton Roofing, the building's
original roofing contractor. It should be noted that Murton Roofing is also assessing the
source(s) of the leaks, to determine if Art Connection's build-out contractor is responsible
for accidentally perforating the roofing membrane or if the leaks are due to a faulty
installation.
Adolfo Dominguez, an upscale clothing designer chain from Spain, has leased 4 retail
bays for a total of 2,884 square feet for a term of ten years, at a rate of $86,520
($30/sq.ft.) per year, Art Connection, a Swiss custom-jewelry designer, has a 15-year
lease involving 721 square feet at rate of $21,630 ($30/sq.ft.) per year.
Both Tenants have asked for rent concessions to mitigate the lack of business due to the
events described above. As a goodwill gesture, and since these Tenants represent
upscale quality retailers, which this facility was intended to attract, the RDA, as Landlord,
will provide the Tenants a two-month rent abatement, amortized over an eight-month
period. This would equate to a 25 percent reduction for each month during an eight month
period, for a total rent reduction of $14,420 for Adolfo Dominguez and a $3,605 reduction
for Art Connection.
. - .
In the meantime, the RDA is also working with its Property Manager, Miami Beach
Development Corporation (MBCDC), to address other Tenant requests and/or concerns,
including but not limited to, advertising and promotion, street maintenance, addressing
vagrancy (homeless) in the area, controlling construction-related nuisances and policing
the taxi cabs which cue on 16th street.
JMG/CMC:kob
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