Resolution 2021-31722 RESOLUTION NO. 2021-31722
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, PROVIDING COVID-19 RELIEF TO
ALCHEMY MIAMI BEACH, LLC, PURSUANT TO THE AGREEMENT
BETWEEN THE CITYOF MIAMI BEACH, FLORIDA AND ALCHEMY
MIAMI BEACH, LLC, FOR THE IMPLEMENTATION, MANAGEMENT
AND OPERATION OF CITY MUNICIPAL PARKING GARAGE
ADVERTISING SERVICES PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO.2017-081-WG, BY APPROVING A WAIVER OF
THE MINIMUM GUARANTEE, AS SET FORTH IN SECTION 5.1 OF THE
AGREEMENT, FOR THE PERIOD FROM OCTOBER 2020 THROUGH
FEBRUARY 2021, IN THE AMOUNT OF $104,165.00; AND FURTHER,
DIRECTING THE CITY MANAGER TO RETRACT, IN WRITING, THE
NOTICE(S) OF DEFAULT ISSUED TO ALCHEMY MIAMI BEACH, LLC
DATED MARCH 2, 2021 AND APRIL 2, 2021, AND TO PROVIDE
ALCHEMY MIAMI BEACH, LLC WITH THIRTY (30) DAYS, BEGINNING
ON JUNE 1, 2021, TO REMOVE ALL OF ITS ADVERTISING PANELS,
HARDWARE AND EQUIPMENT FROM THE CITY-OWNED PARKING
GARAGES.
WHEREAS, on October 24, 2017, pursuant to Request for Proposals (RFP) No.
2017- 081-WG, the City entered into an Agreement with Alchemy Miami Beach, LLC
("Alchemy") for the Implementation, Management and Operation of City Municipal Parking
Garage Advertising Services with an initial term of three (3) years; and
WHEREAS, the initial term of three (3)years expired on March 6, 2021; and
WHEREAS, prior to the onset of the COVID-19 pandemic, Alchemy was in full
compliance with the Agreement and made timely payments of the Minimum Guarantee
("MG") to the City; and
WHEREAS, due to the onset of the COVID-19 pandemic, effective March 21,
2020, the City closed all City-owned parking garages ("Parking Garages") to the general
public which triggered Section 13.1(b) ("Force Majeure") of the Agreement; and
WHEREAS, in accordance with the City's contractual obligations under Section
13.1(b) of the Agreement, the City suspended Alchemy's MG payment obligation until
"such time that the City's Emergency Measures prohibiting the general public's access to
the City-owned parking garages is lifted or expired", which agreement is memorialized in a
letter agreement dated March 24, 2020;and
WHEREAS, on October 30, 2020, the City transmitted a letter to Alchemy dated
October26, 2020, informing Alchemy that the Parking Garages had been reopened at full
capacity, and that the MG payment obligation was being reinstated retroactively to
October 1, 2020; and
WHEREAS, due to the City's COVID-19 related curfew, and notwithstanding the
City reopening the Parking Garages on October 1, 2020, the general public's ingress and
egress to the Parking Garages remained impeded during the hours of 12:00 AM through 6:00
AM, until April 12, 2021 when the curfew was lifted; and
WHEREAS, due to the impacts of COVID-19, Alchemy suffered a material
reduction in advertising revenues and is not able to comply with the MG for the period
from October 2020 through February 2021; and
WHEREAS, on March 2, 2021, the City transmitted a Notice of Default to Alchemy
for failure to pay the MG for the period from October 2020 through February 2021; and
WHEREAS, on March 17, 2021, Alchemy transmitted correspondence to the City
rejecting the City's Notice of Default dated March 2, 2021, based upon the claim that
the Parking Garageswere not reopened at full capacity due to the COVID-19 related
curfew, which continued to impede the general public's ingress and egress to the
Parking Garages during the hours of 12:00 AM through 6:00 AM due; and
WHEREAS, on April 1, 2021, the City transmitted correspondence to Alchemy
stating, in part, that the default for failure to pay the MG for the period from October
2020 through February 2021, in the amount of$104,165.00, remained uncured; and
WHEREAS, the COVID-19 relief being afforded to Alchemy herein is
consistent with the COVID-19 relief afforded to the City's tenants, operators and
concessionaire's pursuant to Resolutions No. 2020-31332, 2020-31460, and 2021-
31543; and
WHEREAS, the COVID-19 relief being afforded to Alchemy herein is
consistent with the COVID-19 relief to be considered by the Mayor and City
Commission on May 12, 2021 for the City's tenants, operators and vendors pursuant
to agenda items C7 G and C7 H; and
WHEREAS, based upon the established performance record of Alchemy prior to
the onset of the COVID-19 pandemic, and the material adverse impact that the
COVID-19 pandemic had on Alchemy's advertising revenues, it is fair and equitable
that the Mayor and City Commission approve the waiver of the MG owed by Alchemy
to the City for the period from October 2020 through February 2021, in the total
amount of$104,165.00, and provide Alchemy with thirty (30)days beginning on June
1, 2021, to remove all of its advertising panels, hardware and equipment from the
Parking Garages, and further, based upon the waiver of the MG as set forth herein, direct
the City Manager to retract, in writing, the Notice(s) of Default issued to Alchemy
dated March 2,2021 and April 1, 2021; and
WHEREAS, on May 12, 2021,following discussion on Item C7-K, to provide Covid-
19 Rent Relief to Alchemy MB, LLC., the Mayor and City Commission referred the item
to the Finance and Economic Resiliency Committee ("FERC"); and
WHEREAS, on May 21, 2021, the FERC recommended that the Mayor and City
Commission approve the proposed Covid-19 rent relief to Alchemy MB, LLC as set forth
in this Resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City
Commission hereby approve providing COVID-19 relief to Alchemy Miami Beach, LLC by
waiving the Minimum Guarantee owed by Alchemy Miami Beach, LLC to the City for the
period from October 2020 through February 2021, in the amount of $104,165.00; and
further, based upon the waiver of the MG as set forth herein, directing the City Manager
to retract, in writing, the Notice(s) of Default issued to Alchemy Miami Beach, LLC dated
March 2, 2021 and April 1, 2021, and to provide Alchemy Miami Beach LLC with thirty
(30) days, beginning on June 1, 2021, to remove all of its advertising panels, hardware
and equipment from the City-owned parking garages.
PASSED AND ADOPTED this aG day of My 2021.
Dan Gelber, Mayor
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Resolutions-C7 C
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Vice-Mayor Michael Gongora
DATE: May 26, 2021
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, PROVIDING COVID-19 RELIEF TO
ALCHEMY MIAMI BEACH, LLC, PURSUANT TO THE AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND ALCHEMY MIAMI
BEACH, LLC, FOR THE IMPLEMENTATION, MANAGEMENT AND
OPERATION OF CITY MUNICIPAL PARKING GARAGE ADVERTISING
SERVICES PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO. 2017-
081-WG, BY APPROVING A WAIVER OF THE MINIMUM GUARANTEE, AS
SET FORTH IN SECTION 5.1 OF THE AGREEMENT, FOR THE PERIOD
FROM OCTOBER 2020 THROUGH FEBRUARY 2021, IN THE AMOUNT OF
$104,165.00; AND FURTHER, DIRECTING THE CITY MANAGER TO
RETRACT, IN WRITING, THE NOTICE(S) OF DEFAULT ISSUED TO
ALCHEMY MIAMI BEACH, LLC DATED MARCH 2, 2021 AND APRIL 2, 2021,
AND TO PROVIDE ALCHEMY MIAMI BEACH, LLC WITH THIRTY (30)
DAYS, BEGINNING ON JUNE 1, 2021, TO REMOVE ALL OF ITS
ADVERTISING PANELS, HARDWARE AND EQUIPMENT FROM THE CITY-
OWNED
ITYOWNED PARKING GARAGES.
SUPPORTING SURVEY DATA
N/A
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Legislative Tracking
Vice-Mayor Michael Gongora
Page 25 of 390
ATTACHMENTS:
Description
❑ Resolution
Page 26 of 390