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Lease Agreement with Massage of South Beach, LLC. 262tf � t $'3 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD LEASE AGREEMENT LL THIS LEASE AGREEMENT, made this if day of , , by and between the CITY OF MIAMI BEACH,a Florida municipal corporation,(hereinafter ref rred to as "City" or "Landlord"), and MASSAGE OF SOUTH BEACH, LLC., a Florida limited liability corporation, (hereinafter referred to as"Tenant"). 1. Demised Premises.. The City, 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 City, those certain premises hereinafter referred to as the"Demised Premises" and more fully described as follows: Approximately 1,803 square feet of City-owned property (the °Building"), located at 1701 Meridian Avenue,Unit 2,a/k/a 76717th Street,Miami Beach, Florida,33139,and as more specifically delineated in "Exhibit 1°, attached hereto and incorporated herein. 2. Term. 2.1 Tenant shall be entitled to have and to hold the Demised Premises for an initial term of five (5) years, commencing retroactively on the 1st day of October 2021 (the "Commencement Date"), and ending on the 30th day of September 2026. For purposes of this Lease Agreement,and including,without limitation,Subsection 2.2 herein,a"contract year°shall be defined as that certain period commencing on the 1st day of October and ending on the 30th day of September. 2.2 Provided Tenant is in good standing and free from default(s) under Section 18 hereof,and upon written notice from Tenant,which notice shall be submitted to the City Manager no earlier than one hundred twenty(120)days, but in any case no later than sixty(60)days prior to the expiration of the initial term,this Lease may be extended for two (2) additional two (2) year renewal terms. Any extension, if approved by the City Manager, in the City Manager's sole discretion, shall be memorialized in writing and signed by the parties hereto. 2.3 Termination for Convenience. This Section is deleted in its entirety. 3. Rent. 3.1 Base Rent: Tenant's payment of Rent, as defined In this Section 3, shall commence retroactively on October 1,2021 (the"Rent Commencement Date")and,thereafter, on each first day of subsequent months. 3.1.1 Throughout the Term herein,the Base Rent for the Demised Premises shall be Sixty-Four Thousand and Nine Hundred Twenty-Nine Dollars and 60/100 ($64,929.60) per year, payable in monthly installments of Five Thousand Four Hundred Ten Dollars and 80/100($5,410.80). 1 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD 3.1.2 The Base Rent amount pursuant to this Section 3.1 shall be increased annually, commencing on the second anniversary of the Commencement Date of the Lease and each anniversary Commencement Date thereafter,as follows: Base Rent Year Escalation Monthly Annual PSF 1 0% $ 5,410.80 $ 64,929.60 $ 36.01 2 3% $ 5,573.12 $ 66,877.49 $ 37.09 3 3% $ 5,740.32 $ 68,883.81 $ 38.21 4 3% $ 5,912.53 $ 70,950.33 $ 39.35 5 3% $ 6,089.90 $ 73,078.84 $ 40.53 6 4% $ 6,333.50 $ 76,001.99 $ 42.15 7 4% $ 6,586.84 $ 79,042.07 $ 43.84 8 4% $ 6,850.31 $ 82,203.75 $ 45.59 9 4% $ 7,124.33 $ 85,491.90 $ 47.42 3.2 Additional Rent: In addition to the Base Rent, as set forth in Section 3.1, Tenant shall also pay the following Additional Rent as provided below: 3.2.1 Operating Expenses: Throughout the Term herein, the Operating Expenses for the Demised Premises shall be Seven Thousand Two Hundred Eleven Dollars and 56/100($7,211.56)per year,payable in monthly installments of Six Hundred Dollars and 96/100 ($600.96), for its proportionate share of "Operating Expenses"which are defined as follows: "Operating Expenses"shall mean the following costs and expenses incurred in operating, repairing, and maintaining the Common Facilities (as hereinafter defined)and shall include,without limitation,water service to the Building, sewer service to the Building, trash removal from the Building, costs incurred for gardening and landscaping, repairing and maintaining elevator(s),painting,janitorial services(except for areas within the Demised Premises),lighting,cleaning,striping,policing, removing garbage and other refuse and trash,removing ice and snow,repairing and maintaining sprinkler systems, water pipes, air-conditioning systems, temperature control systems,and security systems,fire alarm repair and maintenance and other equipment in the common areas and the exterior and structural portions of the Building, paving and repairing, patching and maintaining the parking areas and walkways, and cleaning adjacent areas, management fees and the City's employment expenses to employees furnishing and rendering any services to the common areas, together with an additional administration charge equal to fifteen percent(15%)of all other expenses included in the annual common area expenses,provided by the City for the common or joint use and/or benefit of the occupants of the Building,their employees,agents, servants,customers and other invitees. "Common Facilities"shall mean all Building areas, spaces, equipment, as well as certain services, available for use by or for the benefit of Tenant 2 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD and/or its employees, agents, servants, volunteers, customers, guests and/or invitees. Tenant agrees and understands that the costs incurred for Operating Expenses may increase or decrease and,as such,Tenant's pro-rata share of Operating Expenses shall increase or decrease accordingly. 3.2.2 Property Taxes: The Property Tax Payment shall be payable by Tenant,in accordance with Section 11 herein.The 2021 Property Tax Payment is Twelve Thousand and Thirty-One Dollars and 20/100($12,031.20),payable in monthly installments of One Thousand and Two Dollars and 60/100($1,002.60). Hereinafter, this amount may vary year-after-year, based on actual property tax payments. 3.2.3 Insurance: The Additional Rent shall also include Tenant's pro-rata share toward estimated insurance costs incurred to insure the whole of the Building, payable in monthly installments of Three Hundred and Fourteen.Dollars and 47/100 ($314.47). This insurance coverage is in addition to the insurance required pursuant to Section 10, which shall be obtained at Tenant's sole expense and responsibility. 3.3 Sales Taxes: Concurrent with the payment of the Base Rent and Additional Rent as provide herein,Tenant shall also pay any and all sums for all applicable tax(es), including without limitation, sales and use taxes and Property Taxes, imposed, levied or assessed against the Demised Premises,or any other charge or payment required by any governmental authority having jurisdiction there over,even though the taxing statute or ordinance may purport to impose such tax against the City. 3.4 Sales Reports and Records On or before the twentieth(20t1)day of each calendar month during the Lease Term, Tenant shall prepare and provide to landlord a copy of Tenant's Sales and Use Tax Return(Form DR-15CS or DR-1 5EZ)filed with the Florida Department of Revenue, Audited Financial Sales Report, reporting Gross Sales made from the Premises during the preceding calendar month. In addition, within sixty(60) days after the expiration date of each calendar year and within sixty(60)days after the termination of this Lease if this Lease should not terminate at the end of a calendar year,Tenant shall prepare and provide to landlord a payable Statement of Gross Sales made from the premises during the preceding calendar year, (or partial calendar year), certified to be correct by Tenant's Chief Financial Officer. Tenant shall furnish a similar statement for its licenses,concessionaires and subtenants, if any. 3.5 Enforcement. Tenant agrees to pay the Base Rent, Additional Rent, and any other amounts as may be due and payable by Tenant under this Agreement, at the time and in the manner provided herein,and should said rents and/or other additional amounts due herein provided,at any time remain due and unpaid for a period of fifteen(15)days after the same shall become due,the City may exercise any or all options available to it hereunder,which options may be exercised concurrently or separately,or the City may pursue any other remedies enforced by law. 3 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD 3.6 Inspector General Audit Rights (A)Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City has established the Office of the Inspector General which may, on a random basis, perform reviews, audits, inspections and, investigations on all City contracts, throughout the duration of said contracts. This random audit is separate and distinct from any other audit performed by or on behalf of the City. (B)The Office of the Inspector General is authorized to investigate City affairs and empowered to review past,present and proposed City programs,accounts,records, contracts and transactions. In addition, the Inspector General has the power to subpoena witnesses, administer oaths, require the production of witnesses and monitor City projects and programs.Monitoring of an existing City project or program may include a report concerning whether the project is on time,within budget and in conformance with the contract documents and applicable law. The Inspector General shall have the power to audit, investigate, monitor, oversee, inspect and review operations, activities,performance and procurement process including but not limited to project design,bid specifications,(bid/proposal)submittals,activities of the Tenant, its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. Pursuant to Section 2-378 of the City Code, the City is allocating a percentage of its overall annual contract expenditures to fund the activities and operations of the Office of Inspector General. (C)Upon ten(10)days written notice to the Tenant,the Tenant shall make all requested records and documents available to the Inspector General for inspection and copying.The Inspector General is empowered to retain the services of independent private sector auditors to audit, investigate, monitor, oversee, inspect and review operations activities,performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of the Tenant its officers,agents and employees,lobbyists,City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. (D)The Inspector General shall have the right to inspect and copy all documents and records in the Tenants possession, custody or control which in the Inspector General's sole judgment, pertain to performance of the contract, including,but not limited to original estimate files,change order estimate files,worksheets,proposals and agreements from and with successful subcontractors and suppliers,all project- related correspondence,memoranda,instructions,financial documents,construction documents, (bid/proposal)and contract documents, back-change documents, all documents and records which involve cash, trade or volume discounts, insurance proceeds, rebates, or dividends received, payroll and personnel records and supporting documentation for the aforesaid documents and records. (E)The Tenant shall make available at its office at all reasonable times the records, materials, and other evidence regarding the acquisition (bid_preparation) and performance of this Agreement,for examination,audit,or reproduction,until three (3)years after final payment under this Agreement or for any longer period required by statute or by other clauses of this Agreement. In addition: i. If this Agreement is completely or partially terminated, the Tenant shall make available records relating to the work terminated until three (3) years after any 4 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD • resulting final termination settlement;and ii. The Tenant shall make available records relating to appeals or to litigation or the settlement of claims arising under or relating to this Agreement until such appeals, litigation,or claims are finally resolved. (F) The provisions in this section shall apply to the Tenant, its officers, agents, employees, subcontractors and suppliers. The Tenant shall incorporate the provisions in this section in all subcontracts and all other agreements executed by the Tenant in connection with the performance of this Agreement. (G)Nothing in this section shall impair any independent right to the City to conduct audits or investigative activities.The provisions of this section are neither intended nor shall they be construed to impose any liability on the City by the Tenant or third parties. 4. Location for Payments. All rents or other payments due hereunder shall be paid to the City at the following address: City of Miami Beach Finance Department 1700 Convention Center Drive Miami Beach, Florida 33139 or at such other address as the City may, from time to time, designate in writing. 5. Parking. Tenant may request,from the City's Parking Department,the use of no more than five(5) parking spaces,if available,within the Municipal Parking Garage at the prevailing rates,plus applicable sales and use tax per space. Rates for said spaces are subject to change. 6. Security Deposit/Guaranty. 6.1 Upon execution of this Agreement Tenant shall furnish the City with a Security Deposit, in the amount of Eighteen Thousand Twenty-Eight Dollars and 89/100 ($18,028.89). Said Security Deposit shall serve to secure Tenant's performance in accordance with the provisions of this Agreement. In the event Tenant fails to perform in accordance with said provisions, the City may retain said Security Deposit, as well as pursue any and all other legal remedies provided herein,or as may be provided by applicable law. The parties agree and acknowledge that the foregoing condition is intended to be a condition subsequent to the City's approval of this Agreement.Accordingly,in the event that Tenant does not satisfy the aforestated, then the City Manager or his designee may immediately, without further demand or notice, terminate this Agreement without being prejudiced as to any remedies which may be available to him for breach of contract. 6.2 Upon execution of this Agreement,Tenant shall execute and deliver to City the Guaranty,in the form attached as Exhibit 6.2 hereto. 7. Use and Possession of Demised Premises. 7.1 The Demised Premises shall be used by the Tenant for the purpose(s)of operating a massage therapy clinic providing facials and related products and services.Said 5 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD Premises shall be open for operation as follows: Monday-Sunday: 10:00 AM to 10:00 PM Tenant shall not otherwise modify the days or hours of operation without the prior written approval of the City Manager.Nothing herein contained shall be construed to authorize hours contrary to the laws governing such operations. 7.2 It is understood and agreed that the Demised Premises shall be used by the Tenant during the Term of this Agreement only for the above purpose(s)/use(s),and for no other purpose(s)and/or use(s)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(nor permit)waste on the Demised Premises;nor permit the use of the Demised Premises for any illegal purposes; nor commit a nuisance on the Demised Premises. In the event that the Tenant uses the Demised Premises (or otherwise allows the Demised Premises to be used) for any purpose(s) not expressly permitted herein, or permits and/or allows any prohibited use(s) as provided herein, then the City may declare this Agreement in default pursuant to Section 18 or,without notice to Tenant,restrain such improper use by injunction or other legal action. 8. Improvements. 8.1 Tenant accepts the Demised Premises in their present"AS IS"condition and may construct or cause to be constructed,such interior and exterior improvements and maintenance to the Demised Premises,as reasonably necessary for it to carry on its permitted use(s), as set forth in Section 7; provided, however, that any plans for such improvements shall be first submitted to the City Manager for his prior written consent, which consent, 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 expense and responsibility.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. Any and all permits and or licenses required for the installation of improvements shall be the sole cost and responsibility of Tenant. 8.2 Notwithstanding Subsection 8.1, upon termination and/or expiration of this Agreement, and at City'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 expense and responsibility, 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. 8.3 The above requirements for submission of plans and the use of specific contractors shall not apply to improvements(which term, for purposes of this Subsection 8.3 6 • DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD only,shall also include improvements as necessary for Tenant's maintenance and repair of the Demised Premises) which do not exceed Five Hundred ($500.00) Dollars,provided that the work is not structural,and provided that it is permitted by applicable law. 8.4 Tenant Improvements. Tenant agrees to make certain improvements (Tenant Improvements) to the Demised Premises(valued by the parties at approximately One Hundred Thousand Dollars and 00/100($100,000.00), as delineated in "Exhibit 8.4", attached hereto and incorporated herein (the Tenant Improvements). The Tenant Improvements shall be made in accordance with the following timeline: • Tenant shall obtain a building permit no later than one hundred and eighty(180)days from the Commencement Date of this Agreement; • Tenant shall commence making the Tenant Improvements no later than forty-five (45) days from the date the building permit is issued (the "Building Permit Date");and • Tenant Improvements shall be completed,and Tenant shall obtain final. approval by the City's Building Department for said Tenant Improvements, no later than one hundred eighty (180) days from the Building Permit Date. Failure to comply with the timeline and complete the Tenant Improvements within the time period specified shall.constitute an event of default hereunder. 9. City's Right of Entry.. 9.1 The City Manager, and/or his authorized representatives, 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 City may consider necessary; and for the purpose of preventing fire, theft or vandalism. The City agrees that,whenever reasonably possible,it shall use reasonable efforts to provide notice(whether written or verbal),unless the need to enter the Demised Premises is an emergency,as deemed 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 on the part of the City to do any work that under any provisions of this Agreement the Tenant may be required to perform,and the performance thereof by the City shall not constitute a waiver of the Tenant's default. 9.2 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,and/or his authorized representatives, may enter the Demised Premises by master key,or may forcibly enter the Demised' Premises without rendering the City or such agents liable therefore. 9.3 Tenant shall furnish the City with duplicate keys to ail locks including exterior and interior doors prior to (but no later than by) 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, and in the event such consent is given, Tenant shall furnish the City with duplicate keys to said locks in advance of their 7 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD • installation. 10. Tenant's Insurance. 10.1 Tenant shall, at its sole expense and responsibility, comply with all insurance requirements of the City.It is agreed by the parties that Tenant shall not occupy the Demised Premises until proof of the following insurance coverages have been reviewed and approved by the City's Risk Manager: • 10.1.1 Comprehensive General Liability, in the minimum amount of One Million ($1,000,000)Dollars(subject to adjustment for inflation)per occurrence for bodily injury and property damage.The City of Miami Beach must be named as an additional insured on this policy. 10.1.2 Workers Compensation and Employers Liability coverage in accordance with Florida statutory requirements. 10.1.3 All-Risk property and casualty insurance, written at a minimum of eighty (80%) percent of replacement cost value and with replacement cost endorsement,covering all leasehold improvements installed in the Demised Premises by or on behalf of Tenant and including without limitation 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). 10.2 Proof of these coverages must be provided by submitting original certificates of insurance to the City's Risk Manager and Asset Manager respectively.All policies must provide thirty(30) days written notice of cancellation to both the City's Risk Manager and Asset Manager(to be submitted to the addresses set forth in Section 27 hereof). 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. 10.3 Certificates must be sent directly to certificates-miamibeach(a riskworks.com.Please ask vendors to include the following information when sending the insurance certificates: • Include the Contract's#and the Vendor's name in the subject line of the email. • COI must include that the City of Miami Beach is an "Additional Insured" with respect to the General Liability coverage. • Certificate Holder on all COI shall read: City of Miami Beach c/o Exigis Insurance Compliant Services P.O.Box 947 • Murrieta, CA 92564 11. Property Taxes and Assessments. For the purposes of this Section and other provisions of this Agreement: 11.1 The term "Property Taxes" shall mean (i) real estate taxes, assessments, and special assessments of any kind which may be imposed upon the Demised 8 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD • Premises,and(ii)any expenses incurred by the City in obtaining a reduction of any such taxes or assessments. 11.2 The term"Property Tax Year"shall mean the period of twelve(12)calendar months, beginning on January 1 St of each year. 11.3 Tenant shall pay,as Additional Rent pursuant to Section 3.2,for such Property Tax Year an amount ("Property Tax Payment") equal to Tenant's pro-rata share of Property Taxes (if any) for such Property Tax Year; said pro-rata share to be determined by the City based upon the ratio of the Demised Premises to the tax lot. If a Property Tax Year ends after the expiration or termination of the term of this Agreement,the Property Tax Payment therefore shall be 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 immediately upon receipt of notice from the City.A copy of the tax bill(s)or other evidence of such taxes issued by the taxing authorities, together with the City'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 the City immediately,upon receipt of request for said payment from the City. 12. Assignment and Subletting. Tenant shall not have the right to assign or sublet the Demised Premises, in whole or in part,without the prior written consent of the City Manager,which consent, if granted at all shall beat the City Manager's sole and absolute discretion.Such written consent is not a matter of right and the City is not obligated to give such consent. If granted as provided herein,the making of any assignment or sublease will not release Tenant from any of its obligations under this Agreement. 13. Operation,Maintenance and Repair. 13.1 Tenant shall be solely responsible for the operation,maintenance and repair of the Demised Premises.Tenant shall,at its sole expense and responsibility,maintain the Demised Premises,and all fixtures and appurtenances therein,and shall make all repairs thereto,as and when needed,to preserve them in good working order and condition. Tenant shall 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. Tenant shall also be responsible for replacing all fixtures and equipment listed above which are stolen,damaged beyond repair or worn out. The City shall be responsible for the maintenance of the roof, the exterior of the Building,the structural electrical and plumbing(other than plumbing surrounding any sink(s) and/or toilet(s), including such sink(s) and toilet(s) fixture(s), within the Demised Premises),the common areas and the chilled water supply system.The City shall maintain and/or repair those items that it is responsible for,so as to keep same in proper working condition. If the City provides a separate air-conditioning unit for the Demised Premises, Tenant agrees and understands that Tenant shalt be solely responsible for the maintenance, repair and replacement of the heating/ventilation/air-conditioning (HVAC)equipment servicing the Demised Premises,at Tenant's sole expense. 9 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD Tenant further agrees and understands that, at any time during the Term of this Agreement, the City may require that Tenant to maintain, at Tanat's expense, a maintenance, and repair contract, to be approved by the City, with a service company previously approved in writing by the City, providing for the preventative maintenance and repair of all HVAC equipment servicing the Demised Premises.In the event that the City notifies Tenant that it will require Tenant to contract for said maintenanceand repair services,Tenant shall provide to the City,in writing,within ten (10) business days, the name(s) and telephone number(s) of service company(ies)for the City's review and approval. Tenant shall provide a copy of a current, enforceable and fully executed maintenance and repair contract, no later than ten (10) business days after receipt of the City's approval of the service company,as proof of Tenant's compliance with this provision. 13.2 All damage or injury of any kind to the Demised Premises, and including, without limitation, its fixtures, glass, appurtenances, and equipment (if any), or to the building fixtures, glass, appurtenances, and equipment, if any, except damage caused by the gross negligence and/or willful misconduct of the City, shall be the sole obligation of Tenant,and shall be repaired, restored or replaced promptly by Tenant,at its sole expense and to the satisfaction of the City. 13.3 All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to or better than the original work or installations and shall be done in good and workmanlike manner. 13.4 If Tenant fails to make such repairs or restorations or replacements,the same may be made by the City,at the expense of Tenant, and all sums spent and expenses incurred by the City shall be collectable by the City and shall be paid by Tenant within three(3)days after submittal of a bill or statement therefore. 13.5 It shall be Tenant's sole obligation and responsibility to ensure 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. 13.6 Tenant Responsibilities for Utilities(not included within Operating Expenses). Tenant is solely responsible for, and shall promptly pay when due all charges for electricity, gas, cable, telephone, Internet,janitorial garage service and any other utility service provided to the Demised Premises, including, without limitation, all hook-up fees and impact fees,NOT included as an Operating Expense(pursuant to Subsection 3.2.1). In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Tenant to pay for such utility services(as contemplated in this Subsection 13.6)when due, the City may elect, at its sole discretion, 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 or to third parties, for an interruption or failure in the supply of any utilities or services to the Demised Premises. 13.7 TENANT HEREBY ACKNOWLEDGES AND AGREES THAT THE DEMISED PREMISES ARE BEING LEASED IN THEIR PRESENT"AS IS"CONDITION. • 10 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD 14. Governmental Regulations. 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 expense and responsibility.Tenant shall pay all cost,expenses,claims,fines,penalties,and damages that may be imposed because of the failure of Tenant to comply with this Section, and shall indemnify and hold harmless the City from all liability arising from each non- compliance. 15. Liens. Tenant will not permit any mechanics,laborers,or materialman's liens to stand against the Demised Premises or improvements for any labor or materials to Tenant or claimed to have been furnished to Tenant's agents,contractors,or sub-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 City reasonable security as may be demanded by the City to ensure payment thereof and prevent sale, foreclosure, or forfeiture of the Premises or improvements by reasons of such non-payment. Such security need not exceed one and one half(11/2)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 the City,or Tenant may"bond off'the lien according to statutory procedures.Tenant will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Tenant's.own expense. 16. Intentionally Omitted. 17. Condemnation. 17.1 If at any time during the Term of this Agreement (including any renewal term hereunder)all or any part or portion of the Demised Premises is taken,appropriated, or condemned by reason of Eminent Domain proceedings, 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 Tenant shall pay any and all rents,additional rents,utility charges,and/or other costs for which it is liable under the terms of this Agreement,up to the date of such taking. 17.2 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the City in any such Eminent Domain proceeding, excepting, however, Tenant shall have the right to claim and recover from the condemning authority, but not from the City, such compensation as may be 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. 11 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD • 18. Default. 18.1 Default by Tenant: At the City's option, any of the following shall constitute an Event of Default under this Agreement: 18.1.1 The Base Rent,Additional Rent, or any other amounts as may be due and payable by"Tenant under this Agreement,or any installment thereof, is not paid promptly when and where due,and Tenant shall not have cured such failure within five (5) days after receipt of written notice from the City specifying such default; 18.1.2 The Demised Premises shall be deserted,abandoned,or vacated; 18.1.3 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 the City specifying any such default;or such longer period of time acceptable to the City,at its sole discretion; 18.1.4 Receipt of notice of violation from any governmental authority having jurisdiction dealing with a law,code,regulation,ordinance or the like,which remains uncured for a period of thirty(30)days from its issuance, or such longer period of time as may be acceptable and approved in writing by"the City Manager,at his sole discretion; 18.1.5 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; 18.1.6 Tenant shall become insolvent; 18.1.7 Tenant shall make an assignment for benefit of creditors; 18.1.8 A receiver is appointed for Tenant by any court and shall not be dissolved within thirty(30)days thereafter;or 18.1.9 The leasehold interest is levied on under.execution. 19. Rights on Default. 19.1 Rights on Default: In the event of any default by Tenant as provided herein,City 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; 19.1.1 Terminate this Agreement, in which event Tenant shall immediately surrender the Demised Premises to the City,but if Tenant shall fail to do so the City may, without further notice, and without prejudice to any other remedy the City may have for possession or arrearages in rent or damages 12 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD for breach of contract, enter upon the Demised Premises and expel or remove Tenant and its effects in accordance with law,without being liable for prosecution or any claim for damages therefore,and Tenant agrees to indemnify and hold harmless the City for all loss and damage which the City may suffer by reasons of such Agreement termination, whether through inability to re-let the Demised Premises,or otherwise. 19.1.2 Declare the entire amount of the Base Rent and Additional Rent which would become due and payable during the remainder of the term of this Agreement 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 the City, 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. 19.1.3 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-let the Demised Premises,or portions thereof, for such terms and upon such conditions which the City deems, in its sole discretion,desirable, and to receive the rents therefore, and Tenant shall pay the City 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 the City;and for the purpose of re-letting,the City 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 the City any deficiency as aforesaid. 19.1.4 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 Tenant liable for the deficiency,if any. 19.1.5 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 the City's behalf to enforce this Section shall not constitute a waiver of this provision with respect to future accruals of past due rent. In addition,there will be a late charge of Fifty($50.00)Dollars for any payments submitted after the due date. 19.1.6 If Tenant shall default in making any payment of monies to any person or for any purpose as may be required hereunder,the City may pay such expense, but the City shall not be obligated to do so. Tenant, upon the City's paying such expense, shall be obligated to forthwith reimburse the City for the amount thereof.All sums of money payable by Tenant to the City hereunder shall be deemed as rent for use of the Demised Premises and collectable by the City from Tenant as rent,and shall be due from Tenant to the City on the first day of the month following the payment of the expense by the City. 13 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD 19.1.7 The rights of the City under this Agreement shall be cumulative but not restrictive to those given by law and failure on the part of the City to exercise promptly any rights given hereunder shall not operate to waive or to forfeit any of the said rights. 19.2 Default by City: The failure of the City to perform any of the covenants,conditions and agreements of this Agreement which are to be performed by the City and the continuance of such failure for a period of thirty(30)days after notice thereof in writing from Tenant to the City(which notice shall specify the respects in which Tenant contends that the City failed to perform any such covenant, conditions and agreements) shall constitute a default by the City, unless such default is one which cannot be cured within thirty(30)days because of circumstances beyond the City's control,and the City within such thirty(30)day period shall have commenced and thereafter shall continue diligently to prosecute ail actions necessary to cure such defaults. However,in the event the City fails to perform within the initial thirty(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 Tenant, then such failure to perform(regardless of circumstances beyond its control)as indicated above, shall constitute a default by the City. 19.3 Tenant's Rights on Default: If an event of the City's default shall occur,Tenant,to the fullest extent permitted by law,shall have the right to pursue any and all remedies available at law or in equity, including the right to sue for and collect damages, including reasonable attorney fees and costs, to terminate this Agreement; provided however, that Tenant expressly acknowledges and agrees that any recovery by Tenant shall be limited to the amount set forth in Section 32 of this Agreement. 20. Indemnity Against Costs and Charges. 20.1 Tenant shall be liable to the City for all costs and charges,expenses, reasonable attomey's fees, and damages which may be incurred or sustained by the City, by reason of Tenant's breach of any of the provisions of this Agreement.Any sums due the City 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. 20.2 If Tenant shall at any time be in default hereunder, and if the City shall deem it necessary to engage an attorney to enforce the City's rights and Tenant's obligations hereunder,Tenant will reimburse the City for the reasonable expenses incurred thereby,including,but not limited to,court costs and reasonable attomey'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. 21. Indemnification Against Claims. 21.1 Tenant shall indemnify and save the City 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 14 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD the Demised Premises or upon any other land or other facility or appurtenance used in connection with the Demised Premises,occasioned in whole or in part by any of the following: 21.1.1 An act or omission on the part of Tenant, or any employee, agent, contractor, invitee,guest,assignee,sub-tenant or subcontractor of Tenant; 21.1.2 Any misuse,neglect,or unlawful use of the Demised Premises by Tenant,or any employee, agent, contractor, invitee, guest, assignee, sub-tenant or subcontractor of Tenant; 21.1.3 Any breach, violation, or non-performance of any undertaking of Tenant under this Agreement; 21.1.4 Anything growing out of the use or occupancy of the Demised Premises by Tenant or anyone holding or claiming to hold through or under this Agreement. 21.2 Tenant agrees to pay all damages to the Demised Premises and/or other facilities used in connection therewith,caused by Tenant orany employee,agent,contractor, guest,or invitee of Tenant. 22. Skins and Advertising. Without the prior written consent of the City Manager,which consent,if given at all,shall be at the City Manager's sole and absolute discretion,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.All additional signage shall comply with signage standards established by the City and comply with all applicable building codes,and any other municipal,County, State and Federal laws. 23. Effect of Conveyance. The term"City"and/or"Landlord"as used in the Agreement means only the owner for the time being of the land and building containing the Demised Premises,so that in the event of any sale of said land and building,or in the event of a lease of said building,the City shall be and hereby is entirely freed and relieved of all covenants and obligations of the City hereunder,and it shall be deemed and construed without further agreement between the parties,or between the parties and the purchaser at such sale,or the lease of this building, that the purchaser or Tenant has assumed and agreed to carry out all covenants and obligations of the City hereunder. 24. Damage to the Demised Premises. 24.1 If the Demised Premises shall be damaged by the elements or other casualty not due to Tenants negligence,or by fire,but are not thereby rendered untenantable,as determined by the City Manager,in his sole discretion,in whole or in part,and such damage is covered by the City's insurance,if any,(hereinafter referred to as"such occurrence"),the City,shall,as soon as possible after such occurrence, utilize the insurance proceeds to cause such damage to be repaired and the Rent(Base Rent and Additional Rent) shall not be abated. If by reason of such occurrence, the Demised Premises shall be rendered untenantable, as determined by the City Manager,in his sole discretion,only in part,the City shall as soon as possible utilize the insurance proceeds to cause the damage to be repaired, and the Rent meanwhile shall be abated proportionately as to the portion of the Demised 15 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD Premises rendered untenantable; provided however,that the City shall promptly obtain a good faith estimate of the time required to render the Demised Premises tenantable and if such time exceeds sixty (60) days, either party shall have the option of canceling this Agreement. 24.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, the City shall have the option, but not the obligation, in its sole discretion,to utilize the insurance proceeds to cause such damage to be repaired • and the Rent meanwhile shall be abated.However,the City shall have the right,to be exercised by notice in writing delivered to Tenant within sixty(60)days from and after said occurrence,to elect not to reconstruct the destroyed Demised Premises, and in such event,this Agreement and the tenancy hereby created shalt cease as of the date of said occurrence,the Rent to be adjusted as of such date.If the Demised Premises shall be rendered wholly untenantable,Tenant shall have the right,to be exercised by notice in writing,delivered to the City within thirty(30)days from and after said occurrence,to elect to terminate this Agreement,the Rent to be adjusted accordingly. 24.3 Notwithstanding any clause contained in this Section 24, if the damage is not covered by the City's insurance,then the City shall have no obligation to repair the damage, but.the City shall advise Tenant in writing within thirty (30) days of the occurrence giving rise to the damage and of its decision not to repair, and the Tenant may,at any time thereafter,elect to terminate this Agreement,and the Rent shall be adjusted accordingly. 25. Quiet Enjoyment. Tenant shall enjoy quiet enjoyment of the Demised Premises and shall not be evicted or disturbed in possession of the Demised Premises so tong as Tenant complies with the terms of this Agreement. 26. Waiver. 26.1 It is mutually covenanted and agreed by and between the parties hereto that the failure of the City 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. 26.2 A waiver of any term expressed herein shall not be implied by any neglect of the City 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. 26.3 The receipt of any sum paid by Tenant to the City 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 the City. 27. Notices. The addresses for all notices required under this Agreement shall be as follows,or at such 16 DocuSign Envelope ID:67069764-4079-43BC-A6B9-7A044BF4E7CD • other address as either party shall be in writing, notify the other: LANDLORD: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With copy to: Asset Manager Facilities and Fleet Management Department City of Miami Beach 1833 Bay Road,Second Floor Miami Beach, Florida 33139 TENANT: Massage of South Beach, LLC. 767 17th Street, Unit 2 Miami Beach, Florida 33139 With copies to: Jeff Unger, Manager 3000 Island Blvd.,Apt. 2701 Aventura, Florida 33160 Massage Envy Franchising, LLC 14350 North 97th Street,Suite 200 Scottsdale,AZ 85260 All notices shall be hand delivered and a receipt requested,or by certified mail with Return receipt requested,and shall be effective upon receipt. 28. 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 the City and Tenant and their respective successors and assigns,except as may be otherwise expressly provided in this Agreement. 29. 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. 30. 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. 31. Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall 17 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD include the singular,and the use of one gender shall include all genders. 32. Limitation of Liability. The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action for money damages due to an alleged breach by the City of this Agreement,so that its liability for any such breach never exceeds the sum of Fifty Thousand($50,000.00)Dollars.Tenant hereby expresses its willingness to enter into this Agreement with Tenant's recovery from the City 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 City 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 or non-performance of any obligations imposed upon the City 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 the City's liability as set forth in Florida Statutes,Section 768.28. 33. Surrender of the Demised Premises. 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 City the Demised Premises,together with any and all equipment,fixtures,furnishings,appliances or other personal property,if any, located at or on 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 all 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.My 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 City, be deemed abandoned by Tenant, and either may be retained by the City as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the City 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,Tenant shall make good the City all damages which the City shall suffer by reason thereof, and shall indemnify and hold harmless the City against all claims made by any succeeding tenant or purchaser,so far as such delay is occasioned by the failure of Tenant to surrender the Demised Premises as and when herein required. 34. Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 35. Venue: This Agreement shall be deemed to have been made and shall be construed and interpreted in accordance with the laws of the State of Florida. 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. CITY AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING THAT THE CITY AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT. 18 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD 36. Radon is a naturally occurring radioactive gas that,when it is accumulated in a building in sufficient 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. 37. No Dangerous Materials. Tenant agrees not to use or permit in the Demised Premises the storage and/or use of gasoline, fuel oils, diesel, illuminating oils, oil lamps, combustible powered electricity producing generators,turpentine,benzene,naphtha,propane,natural gas,or other similar substances, combustible materials, or explosives of any kind, or any substance or thing prohibited in the standard policies of fire insurance companies in the State of Florida.Any such substances or materials found within the Demised Premises shall be immediately removed. Tenant shall indemnify and hold the City harmless from any loss,damage,cost,or expense of the City,including,without limitation,reasonable attomey's fees,incurred as a result of, arising from,or connected with the placement by Tenant of any"hazardous substance"or "petroleum products"on, in or upon the Demised Premises as those terms are defined by applicable Federal and State Statute, or any environmental rules and environmental regulations promulgated thereunder. The provisions of this Section 37 shall survive the termination or earlier expiration of this Agreement. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 19 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD IN WITNESS WHEREOF,the parties hereto have caused their names to be signed and their seals to be affixed, all as of the day and year first above written, indicating their agreement. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: rf(-..-------j Ra f7..... )1, ael E. kRae,eitiglirk Alina T. Hudak, ity Manager Date MAR 2 - 2022 0BP C \� � APPROVED AS TO oa-+ter FORM&LANGUAGE 51 a (ORP\,R,,,C):51, FORE TION t 4V- Otijr 1Z ZO/'��C City Attorney Date / 7' 1 FOR TENANT: MASSAGE OF SOUTH BEACH, LLC. ATTEST: AA4 Sign M.M. U ir, Manager Cc\(3'f-e.)I 4 Se,4e7- a y-,Q.,,, 411111104S' - — S •7 t Ca4 rim Greta, , C�c E ao✓ta r- r ame,Title VZ1022 Dat CORPORATE SEAL (affix seal here) 20 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD i • EXHIBIT 1 Demised Premises __J . . , . ....,,.. ........, ,,,,,,,,,,,..„ ,,„,....„ ..-- a F.M.1011 • sWORM N UNIT 4 e k. • 4 a \Z\\ . r �ss'k.s\:tea\\"Wo,s,\ `,. I\ \ f �\`.\ \ % \N UNIT 3 :.'\\ *.\\moo'.. bli: R m m y. . . ***. ' I ,P\. , .i 4 (r • Ili� s @. ' Q0 lEn NzN 5z \ • UNIT 1 \�z • a o \, 3, •••e�:.\-�t�\�n� \\\ \s\` \ , :t yr 2' „ , r'�� \��\.\lam..\ ¢. 11. COMMON / " !t••:i J ELEMENTS : + ",.. 11 II1 STAIRS •1:r ti • AREA UNIT 1=1,326.78 S/F AREA UNIT 2=1,802.89 S/F ° 1O° 300 AREA UNIT 3=1,290.59 S/F I = =""= ra` - AREA UNIT 4=1,268.87 S/F • • • SURVflVlr:HD1L• OLTALS OF gria,DR9 WALL$FF_AE BASW H ODOM&DRAW=NO OM'H40,111004 WWI MOW MO WR.£f • First Floor Plan Prepared by: 1701 MERIDIAN BUILDING CONDOMINIUM • -�g /ss II ens-sago • Exhibit(B" ���o%s/poop s. Q 21 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD EXHIBIT 6.2 Lease Guaranty "Lease is herein defined to be that certain Lease Agreement date2b52.1" , and entered into by Massage of South Beach, LLC., as Tenant, and the City of Miami Beach, as Landlord with respect to certain Demised Premises located at 1701 Meridian Avenue,Unit 2(a/k/a 767 17th Street), Miami Beach,Florida, 33139. In order to induce the Landlord to enter into the Lease, and for the Ten Dollars($10.00)in hand paid and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged,the undersigned,hereby irrevocably guarantees prompt payment when and as due of all rents and other monetary obligations,and the performance of all other obligations,required to be paid or performed by the Tenant pursuant to the Lease for the entire Term and all extensions and renewals thereof and agrees to pay and perform as a primary obliger all liabilities,obligations and duties of Tenant pursuant to the Lease, including,without limitation, payment of Rent. The undersigned expressly. agrees that the validity and enforceability of this Lease Guaranty ("Guaranty") and the obligations and liability of the Guarantor hereunder shall in no way be terminated, affected or impaired by reason of any modification, indulgence, compromise, settlement, variation of terms, renewal'or extension of the Lease, and the undersigned hereby consents to any such modification,renewal and extension,and agrees that this Guaranty shall not be affected by any termination of the Lease.Action or suit may be brought against the undersigned and reduced to final judgment with or without first concurrently proceeding against the Tenant under the Lease.This Guaranty creates,joint and several,liability to all the undersigned for payment and performance as herein before stated,and the undersigned hereby waives and renounces any and all exemption rights under or by virtue of the Laws of any state or the United States and further waives all notice, demand, protest, presentment, notice of demand, notice of default, diligence, protest, presentment and nonpayment. Any notices or communications to the Tenant under the Lease shall be deemed to constitute notice or communication to the undersigned individually. Landlord and Tenant,without notice to or consent by the undersigned, may at any time and from time to time,enter into modifications,extensions,amendments or other covenants respecting the Lease and the undersigned shall not be released thereby,but shall continue to be fully liable for the payment and performance of all liabilities,obligations,and duties of Tenant pursuant to the Lease as so modified,extended or amended.The force and effect of this Guaranty shall not be affected by the execution of other guaranties securing the same obligations,liabilities and duties.This Guaranty shall be cumulative of any such guaranties and the liability of all the guarantors of the Lease shall be joint and several.The Landlord in its sole discretion shall be entitled to release,compromise or settle the obligations, liabilities,and duties of any one or more of such guarantors and such action shall not affect the right of Landlord, to enforce the Lease against the Tenant and any other guarantors. If any party executing the Guarantee is a corporation or partnership, then the undersigned officer or partner hereby represents and warrants that the Board of Directors of such corporation or the partners of such partnership, have authorized the execution on its behalf and acknowledge the benefit and consideration to the undersigned. The undersigned agree to pay reasonable attomey's fees, plus expenses incurred by Landlord in the enforcement of any right of Landlord hereunder or in thedefense of any action against Landlord hereunder. This instrument shall inure to the benefit of the Landlord under the Lease, its successors and assigns,and shall bind the undersigned,and heirs,successors and assigns.If more than one party has executed this Guaranty,then the liability of all such'parties who have signed below shall be joint and several. 22 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD This Guaranty is made and entered into this IL day of 2.02,2_ ATTEST: Guarantor ffrey M. Unger, individually Name,Title . / 7/4,1,--G-re / `Sign / 7,7 k5ct"5-,c e)(� fe%)Lt �► «� ( C" C Name,Title / /2,c.)Z., Date APPROVED AS TO FORM& LANGUAGE &FOR EXECUTION Afgafilr- AOZI City A1torney `, Date 23 J�9�►�'/1• ,� DocuSign Envelope ID:67069764-4079-43BC-A6B9-7A044BF4E7CD . • EXHIBIT 8.4 Tenant improvement(e) • • • 24 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD RESOLUTION NO. 2021-31893 • A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AND WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(a) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE BETTER SERVED BY WAIVING SUCH CONDITION, AND APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY(LANDLORD)AND MASSAGE OF SOUTH BEACH, INC. (TENANT) FOR THE USE OF APPROXIMATELY 1,803 SQUARE FEET OF GROUND FLOOR RETAIL SPACE, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 2(A/K/A 77717TH STREET), FOR A TERM OF FIVE (5) YEARS, WITH TWO (2) SUCCESSIVE TWO-YEAR RENEWAL TERMS AT THE CITY'S OPTION. WHEREAS, on September 15,2010,the Mayor and City Commission adopted Resolution No.2010-27488, approving a Lease Agreement between the City and Massage Partners, Inc.for the use of approximately 1,803 square feet of City-owned property, located at 1701 Meridian • Avenue, Unit 2(a/k/a 777 17th Street(Leased Premises); and WHEREAS, said Lease having a term of nine (9) years and 364 days, commencing'on December 2, 2010, and ending on November 30, 2020; and WHEREAS, on November 16, 2018 the lease was assigned to Massage of South Beach, LLC("Tenant"), the current operator; and WHEREAS,the Tenant and the City entered into a month to month for a period not to exceed ten months, September 30, 2021; and WHEREAS, prior to the expiration of the Lease Agreement, Massage of South Beach, LLC submitted a letter to the City requesting to enter into a new lease agreement; and WHEREAS, the Tenant has proven to be a successful operator since the lease assignment in 2018; and WHEREAS, the Tenant is ready to invest approximately $100,000.00 by performing upgrades to the clinic to meet the new corporate franchise standards, which must be completed by August 2022; and WHEREAS, on July 30, 2021, the Administration presented Tenant's proposal for a new lease to the Finance and Economic Resiliency Committee (FERC), and FERC recommended in favor of approving a new lease for Tenant based on the below proposed financial terms: Demised Premises: Approximately 1,803 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 2(a/k/a 777 17 Street), Miami Beach, Florida; Initial Term: Five (5)Years, commencing October 1, 2021; Renewal Options: Two (2) renewal options for two (2)years each, at the City Manager's sole discretion; and Rent: No increase on the first year due to investment($100,000.00)and following annual escalations increasing over time per the schedule below: DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD Base Rent Year Escalation Monthly Annual PSF 1 0% $ 5,410.80 $ 64,929.60. $ 36.01 2 3% $ 5,573.12 $ 66,877.49 $ 37.09 3 3% $ 5,740.32 $ 68,883.81 $ 38.21 4 3% $ 5,912.53 $ 70,950.33 $ 39.35 5 3% $ 6,089.90 $ 73,078.84 $ 40.53 6 4% $ 6,333.50 $ 76,001.99 $ 42.15 7 4% $ 6,586.84 $ 79,042.07 $ 43.84 8 4% $ 6,850.31 $ 82,203.75 $ 45.59 9 4% $ 7,124.33 $ 85,491.90 $ 47.42 WHEREAS, keeping a successful operator, instead of incurring additional costs to locate a new tenant, which may not be successful in the space, makes better business sense; and WHEREAS, based upon the foregoing, the City Manager recommends accepting the recommendation of FERC, and waiving, by 5/7ths vote, the formal competitive bidding requirement, as permitted under Section 82-39(a) of the City Code, finding such waiver to be in the best interest of the City, and approving a new lease with Tenant, in the form attached to the City Commission Memorandum accompanying this Resolution. 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, following a duly advertised public hearing, hereby accept the recommendation of the Finance and Economic Resiliency Committee, and waive, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be better served by waiving such condition, and approve and authorize the City Manager and City Clerk to execute a Lease Agreement between the City (Landlord) and Massage of South Beach, Inc. (Tenant) for the use of approximately 1,803 square feet of ground floor retail space, located at 1701 Meridian Avenue, Unit 2 (a/k/a 777 17th street), for an initial term of five (5) years, with two (2)successive two-year renewal terms at the City's option. PASSED and ADOPTED THIS !3 day of 0c66-e✓ 2021. • ATTEST: 731 OCT 152021 Dan Gelber, Mayor Rafael E. Granado, City Clerk IEaCORtiRA1ED•`• �tn; APPROVED AS TO �'�1QR6N 264)-- FORM & LANGUAGE & FOR EXECUTION ' (+ City Attorney at DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD Resolutions-R7 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Aline T. Hudak, City Manager DATE: October 13,2021 2:00 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, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AND WAIVING, BY 5RTH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82- 39(A) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE BETTER SERVED BY WAIVING SUCH CONDITION, AND APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY (LANDLORD) AND MASSAGE OF SOUTH BEACH, INC. (TENANT) FOR THE USE OF APPROXIMATELY 1,803 SQUARE FEET OF GROUND FLOOR RETAIL SPACE, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 2 (A/K/A 777 17TH STREET), FOR A TERM OF FIVE (5) YEARS, WITH TWO (2)SUCCESSIVE TWO-YEAR RENEWAL TERMS AT THE CITY'S OPTION. BACKGROUND/HISTORY On September 15, 2010, the Mayor and City Commission adopted Resolution No. 2010-2748E approving a Lease Agreement between the City and Massage Partners, Inc. (Tenant)for the use c approximately 1,803 square feet of City-owned property, located at 1701 Meridian Avenue, Unit : (a/k/a 777 17th Street)(Premises).The Lease contained an initial term of nine(9)years and 364 days commencing on December 2,2010,and which ended on November 30,2020. On November 16, 2018 the Lease was assigned to Massage of South Beach, LLC, the currer operator. Prior to the expiration of the Lease, Massage of South Beach, LLC submitted a letter to thi City requesting to enter into a new lease agreement.The Tenant and the City entered into a month b month for a period not to exceed ten months,which expires on September 30,2021. ANALYSIS Massage of South Beach,'LLC has proven to be a successful operator since the lease assignment i 2018. Current comparable operators in the adjacent retail spaces have experienced significant loss i revenue due to the COVID-19 pandemic. Massage of South Beach, LLC, despite any revenue lose desires to continue operating at this location. The Tenant.is ready to invest approximately$100,000.01 by performing upgrades to the clinic to meet the new corporate franchise standards, which must bi completed by August 2022. , Furthermore, Massage of South Beach, LLC has committed to makirr Page 570 of 1095 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD significant additional improvements to the space, including updating the front desk area, a conditioning unit, replacing the flooring, adding fixtures, and installing new outside signage. Then changes will enhance the property and provide a better overall experience to guests. The proposed base rent below was derived at upon negotiations with the tenant, taking into consideration the significant investment the tenant is committing to of over$100,000.00 to upgradt the space and it being the first year recovering from the COVI D-19 pandemic. The tenant has nc requested additional rent abatement and has continued making timely payments. If the space were ti go up for lease instead,the City will lose revenue for the time the space is on the market as well as thi City would have to incur brokerage fees associated with leasing the space.According to CoStar, thi leading commercial real estate industry comprehensive data platform with access to all brokerage firr • inventory and leasing rates,the average comparable office lease rate is approximately$35 per squan foot(PSF)to$45 PSF within a one-mile radius of this location. The City entered into negotiations with Tenant and agreed to the following basic terms: Demised Premises: Approximately 1,803 square feet of City-owned property located at 1701 Meridian Avenue, Unit 2 (a/k/a 777 17t' Street), Miami Bead Florida Initial Term: Five(5)Years Renewal Option(s): Two (2)renewal options for two (2)years each,at the City Manager's sole discretion. Base Rent: $36.01 per rentable square foot, plus applicable sales tai No increase on the first year due to investment$100,000.00 and following annuE escalations increasing over time per the schedule below. Base Rent Year Escalation Monthly Annual PSF 1 0% $ 5,410.80 $64,929.60 $36.01 2 3% $5,573.12 $66,877.49 $37.09 3 3% $ 5,740.32 $68,883.81 $38.21 • 4 3% $5,912.53 $70,950.33 $39.35 5 3% $6,089.90 $73,078.84 $40.53 6 4% $6,333.50 $76,001.99 $42.15 7 4% $6,586.84 $79,042.07 $43.84 8 4% $6,850.31 $82,203.75 $45.59 9 4% $7,124.33 $85,491.90 $47.42 Following the recommendation of the Finance and Economic Resiliency Committee meeting on July 30,2021 in favor of approving a new lease for tenant based on the proposed financial terms, I recommend that the Mayor and City Commission waive the formal competitive bidding requirement, by 5/7ths vote, as permitted under Section 82-39(a) of the City Code, as being in the best interest of the City, in that, keeping a successful operator, instead of incurring additional Page 571 of 1095 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD costs to locate a new tenant, which may not be successful in the space, makes better business sense. The proposed rent schedule, currently at $36.01 per square foot, will place this tenant within current market asking rents ($35 PSF - $45 PSF). Additionally, standard current leases usually carry an escalation of 3% per year. Tenant's new lease escalation increases to 4% per year as of year six(6),which allows for the base rent schedule to remain above market rents. SUPPORTING SURVEY DATA • N/A CONCLUSION Based upon the foregoing, the Administration recommends that the Mayor and City Commission adopt the Resolution, accepting to waive the formal competitive bidding requirement, by a 5/7ths . vote, as permitted under Section 82-39(a)of the City Code,finding such waiver to be in the best interest of the City. Said Resolution approving and authorizing the Mayor and City Clerk to execute a new lease agreement with Massage of South Beach, LLC, in accordance with the above stipulated terms and conditions. Applicable Area South Beach Is this a"Residents Right Does this item utilize G.O. to Know" item,pursuant to Bond Funds? City Code Section 2-14? No No Legislative Tracking • Facilities and Fleet Management ATTACHMENTS: Description o Memo • o Resolution D Ad • • • Page 572 of 1095 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Honorable Mayor Dan Gelber and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 17, 2021 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESLIENCY COMMITTEE, AND WAIVING, BY 5/7T" VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(a) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE BETTER SERVED BY WAIVING SUCH CONDITION, AND APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY (LANDLORD) AND MASSAGE OF SOUTH BEACH,LLC(TENANT)FOR THE USE OF APPROXIMATELY 1,803 SQUARE FEET OF GROUND FLOOR RETAIL SPACE LOCATED AT 1701 MERIDIAN AVENUE, UNIT 2 • (A/K/A 777 17TH STREET) FOR AN INITIAL TERM OF FIVE (5) YEARS, WITH TWO (2) SUCCESSIVE TWO-YEAR RENEWAL TERMS AT THE CITY'S OPTION. BACKGROUND On September 15,2010,the Mayor and City Commission adopted Resolution No.2010-27488, approving a Lease Agreement between the City and Massage Partners, Inc. (Tenant) for the use of approximately 1,803 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 2 (a/k/a 777 17th Street) (Premises). The Lease contained an initial term of nine (9) years and 364 days, commencing on December 2, 2010, and which ended on November 30, 2020. On November 16, 2018 the Lease was assigned to Massage of South Beach, LLC,the current operator. Prior to the expiration of the Lease, Massage of South Beach, LLC submitted a letter to the City requesting to enter into a new lease agreement. The Tenant and the City entered into a month to month for a'period not to exceed ten months, which expires on September 30, 2021. • Page 573 of 1095 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD • Commission Memorandum Massage of South Beach,LLC.—Retail Lease Agreement Page 2 of 3 ANALYSIS Massage 'of South Beach, LLC has proven to be a successful operator since the lease assignment in 2018. Current comparable operators in the adjacent retail spaces have experienced significant loss in revenue due to the COVID-19 pandemic. Massage of South Beach,LLC,despite any revenue loss,desires to continue operating at this location.The Tenant is ready to invest approximately$100,000.00 by performing upgrades to the clinic to meet the , new corporate franchise standards, which must be completed by August 2022. , Furthermore, Massage of South Beach, LLC has committed to making significant additional improvements to the space, including updating the front desk area, air conditioning unit, replacing the flooring, adding fixtures, and installing new outside signage. These changes will enhance the property and provide a better overall experience to guests. The proposed base rent below was derived at upon negotiations with the tenant, taking into • consideration the significant investment the tenant is committing to of over $100,000.00 to upgrade the space and it being the first year recovering from the COVID-19 pandemic. The tenant has not requested additional rent abatement and has continued making timely payments. If the space were to go up for lease instead,the City will lose revenue for the time the space is on the market as well as the City would have to incur brokerage fees associated with leasing the space. According to CoStar, the leading commercial real estate industry comprehensive data platform with access to all brokerage firm inventory and leasing rates, the average comparable office lease rate is approximately$35 per square foot(PSF) to $45 PSF within a one-mile radius of this location. The City entered into negotiations with Tenant and agreed to the following basic terms: Demised Premises: Approximately 1,803 square feet of City-owned property,located at 1701 Meridian Avenue, Unit 2(a/k/a 77717th Street), Miami Beach, Florida Initial Term: Five(5)Years • Renewal Option(s): Two(2)renewal options for two(2)years each, at the City Manager's sole discretion. Base Rent: $36.01 per rentable square foot, plus applicable sales tax. No increase on the first year due to investment $100,000.00 and following annual escalations increasing over time per the schedule below. Base Rent • Year Escalation Monthly Annual PSF 1 0% $ 5,410.80 $ 64,929.60 $ 36.01 2 3% $ 5,573.12 $ 66,877.49 $ 37.09 • 3 3% $ 5,740.32 $ 68,883.81 $ 38.21 4 3% $ 5,912.53 $ 70,950.33 $ 39.35 5 3% $ 6,089.90 $ 73,078.84 $ 40.53 • Page 574 of 1095 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD Commission Memorandum Massage of South Beach,LLC.—Retail Lease Agreement Page 3 of 3 6 4% $ 6,333.50 $ 76,001.99 $ 42.15 7 4% $ 6,586.84 $ 79,042.07 $ 43.84 8 4% $ 6,850.31 $ 82,203.75 $ 45.59 9 4% $ 7,124.33 $ 85,491.90 $ 47.42 Following the recommendation of the Finance and Economic Resiliency Committee meeting on July 30, 2021 in favor of approving a new lease for tenant based on the proposed financial terms, I recommend that the Mayor and City Commission waive the formal competitive bidding requirement, by 5/7ths vote, as permitted under Section 82- 39(a)of the City Code,as being in the best interest of the City,in that,keeping a successful operator, instead of incurring additional costs to locate a new tenant, which may not be successful in the space, makes better business sense. The proposed rent schedule, currently at$36.01 per square foot,will place this tenant within current market asking rents ($35 PSF-$45 PSF).Additionally, standard current leases usually carry an escalation of 3% per year. Tenant's new lease escalation increases to 4% per year as of year six(6), which allows for the base rent schedule to remain above market rents. FINANCE AND ECONOMIC RESILIENCY COMMITTEE At the July 30, 2021 Finance and Economic Resiliency Committee(FERC) meeting, the Administration presented the terms and conditions set forth above. The FERC considered this matter and recommended in favor of approving a new Lease Agreement with Massage of South Beach, Inc., for a period of five (5) years, with (2) renewal options for two (2) additional two(2)years and three hundred and sixty four(364)days. CONCLUSION Based upon the foregoing, the Administration recommends that the Mayor and City Commission adopt the Resolution, accepting to waive the formal competitive bidding requirement, by a 5/7ths vote, as permitted under Section 82-39(a) of the City Code, finding such waiver to be in the best interest of the City. Said Resolution approving and authorizing the Mayor and City Clerk to execute a new lease agreement with Massage of South Beach, LLC, in accordance with the above stipulated terms and conditions. Attachments: 1) Resolution Page 575 of 1095 DocuSign Envelope ID:670697B4-4079-43BC-A6B9-7A044BF4E7CD • • VINE I • NEIGHBORS I I SUNDAYSEPTEMBEEI20I1 CITY OF MIAMI BEACH CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARING MEETING NOTICES September 13-17,2021 eon0A7,up..H.0 SEPTEMBER 17, 2021 CITY COMMISSION MEETING 1w*RwwwieOm( ' •=p.^Wd.cd 441.7.41.,MII 11.7114141a LULU,,.„ I 1 1H411 lie lam II llidMNaa On September 17,2021,the City of MIamt Beach will host a Hybrid Cru mbsfon Meeting. see i' •nwr-•../rr•a fly i MI Gs*.tn e+. .•aComm/UlanDuring the Hybrid Commi Wen Meeting,the Clly Comm/Ulan will be phkeicaIly present Ina socially distanced I n w 7..40.41.74111.4 ai,.hwawn I vuaw0 NM!,In the Commission Chamber,Miami Beach City Hall.1700 Convention Carder Drive,Ord Root, II fulfil fautee Swatnaa• Miami Beach,FL 33139.The public is encouraged to attend the meeting uirtudly as provided befaw). rYak°ed•a I r.,w.k+*r.�'•.+sm^Itfssudsna...�.,aerw Howes,,members of the public who*His to attend the meeting or prOdde public comment in person (epos"• n nar°o"r. i rTRjI1Wa may appear at the Commission Chamber.Members of the public arc legated to wear ladal covering° -- p..dht.a°.+. .-- •luau o!wRliab - - (pursuant to City of Miami BeachResolution 2031-31625)and observe soda(distancing consistent with CDC TUMMY,°'Nava''14 guidance Is om0 the spread of COVED-19. I tie.,.. r/x e.Sed=rImW rrt4 ).mnwarww..✓nurtas0lro.s..nw.rnoatrranearavuol p.,,urryi ,Nr,up0Y/0dall rnuN,Yam •To participate or preside comment vidu dui the Commissfn Meeting,the public mayotn 1s1WLttlataWlma P °Ay n0 p ) I NanofUNulu.htux.nmt. the webinar at hfes:/7mlamibeecMWovneomusVl8139285767t or via telephone at 1.301.715.6592(U.S.) 1 Waco ud,vawa'awahetW.rw- ,marwwa .rm auma.siss:.9,vea1❑euru mut ton or 669.475.4499(Toll Free).Webinar ID:81392657671e,Members of the public wanting to speak%i nv.IN on momesutmleu• an Horn during the meeting,must dick the'raise hand'Icon Outing the Zoom app or pre u'9 en the telephone I fa+titlf~haesAidiir=ss Spook C.Orens ask to raise their hand. I tal.w rwra.asaearwardw►try {r0a,..tfi.ird✓ydululnlrwnfaaomv eea4(N.1••••U61 Waawlfg 9n.ltUlEe rush$p=9 NOTICE IS HEREBY GIVEN that the Wowing Public Hearing will be heard by the Mayor and i I a'aii outman. a'amfatm°. City Commisslonere of the City of Miami Beady,Florida,on September 17,2021 at L00 p.m.or as won i I0:i.- odtoot, .aanet.l!cab,kt I boar• •••••—•-ytWaw 1/.rpssss=luvue.nusu thereaher an the matter can ho heard: I Oowll '1 j s.we011uUb.4r. 1 rmfn iaGlabw fanfw blame,s4 400a i 1.1111411111 am a.m.Politic Hurlttp 1 aMIAe•1 puu A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH.FLORIDA. rms. vanar.,ca.n+w,l.ea..ewm'wr• 1 wwaal FOLLOWING A DULY ADVERTISED PUBLIC HEARING,ACCEPTING THE RECOMMENDATION OF THE IndOisuilesserfusst t I wtmba f FINANCE AND ECONOMIC RESLIENCY COMMITTEE,AND WAIVING BY 5I7TH VOTE,THE FORMAL rtes. e..a u a.ae. l,a •aaw.w✓,nnuortdlr rnneromsmlaarw.'wrddt COMPETITIVE BIDDING REQUIREMENT IN SECTION 60-39(A)OF THE CITY CODE,FINDING THAT THE hone.," I.snanmaa'sal.mne sun plltmuls r rauaeermerta PUBLIC INTEREST WOULD BE BETTER SERVED BY WAIVING SUCH CONDITION,AND APPROVING AND •• •• • •' � AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE bpan ha„'r:a'''do"c'ntn mav w rwaiwaaryttmm m•nianrwoouwvna meusuvaoo= 2lady 371/rtaill.•.II11wlft CITY(LANDLORD)AND MASSAGE OF SOUTH BEACH.LLC.(TENANT)FOR THE USE OF APPROXIMATELY I aurwe,inimrte. Pasale nun. 1,1103 SQUARE FEET OF GROUND FLOOR RETAIL SPACE LOCATED AT 1701 MERIDIAN AVENUE, aamassoAY,f.tanbv la UNIT 2(A/K/A 7YI t7TH STREET)FOR AN INITIAL TERM OF FIVE(5)YEARS.WITH TWO(2)SUCCESSIVE Isla. i ph A,apar aurnjs,/aaeN.•. •rr,c,L euw.•7isaun, ,ilattntanUou=aautl TWO-YEAR RENEWAL TERMS AT THE CRTYS OPTION.this Resolution is being beard pursuant to¢t66.041 P.S. •bnomraaa:end. I loanpntrronas Ingrfdies may be direeled to Me Facilities and Fleet Management Department at 305.673.7631. motormen I,IbYW M j. n. aA!te•a O'. u,ilydt See . II Noare1.11DU.boyLoalt ra.na.,.yWlaunNih.a•aoUPrtsowxra.oane=hm INTERESTED PARTIES are;rotted to lake port In h1,meeting or be represented by an agent { s ho.u:rig !.MLLiWscrucu Upi The public may eubmlt written comments by sending an email to:CltyCterkainlamlbeache nay by 5A0 p.m. 1 1 .a, wpnYulbo, Paw.aa was. the day before the City Commission Meeting.New Identify the Agenda gem Number to the Small Subject I My,.My,. I•"MOBen infendn,Y,olet an t,nnam,a51um8rm6a•.anasN'einowrnrula,man Me.Emstls received wIT be forwarded to Ole Mayor and Corrmdssbners and will be Included a.a part ad the fools.bl ;au..p=aRRam Pe..f.supra Luapula meeting record. i aupnna. tlnl. Io ua,U mfa. Codes of this Agenda Item are available Tar public Inspection al:h11o526610 mlamiheheo 11 TMY�aa''°e°".ir If •• gpv/cOvhalf/cMleraraeanda•arcMve.nahroeae-27.This meeting,or any Item therein,may be continued, IA.' I lcru°wart m"ru.+ubro.rnn MO Cove•floteeto Me.,t It and under net, flakecircumstances,additional legal flake need not be provided. aim 4 rnu. rma s.attetcoo•var went i kale rm Prpsuant to Section 266.0155,Fla.Sul,the City hereby adobes the public that a a person decIdes w.v,ah.aw„ ,mmontaatn to west any deaislan made by the City Cmnnrladm with respect to any matter considered al its meeting or IMMOn.S.pt0N0,r 17 SD hearing,such person must ensu,ethat a verbatim record al the proceedings is mask,which record Includes I en.. I luPor.m_U ,nwn^n.0,a,0's•.x•rmtirin.r lell,llill.rpaamarn the testimony and evidence upon Witch the aPOaal la 10 be based.This notice does not constitute cmaant by !nontenn wctoraana• i sum ppunipw. I jkAwa•47 imeaeenur:efu•v I n.r6wraece.ma cart. the ClNtor the introduction or admission cf otherwise Inadmisstbie or IrmIevant evidence.nor does it authorise _ chalceoe or appeals not otherwise slowed by law. •four AunovuRrts',.tawnoutnnuu.,n Aasher.,drssonsa�ro,..wsry� � �ewYre.f..ra.shn.heb.r 1 -f.oste.k4f4wereLleaUno0474 To request this material in alternate loans,sign language interpreter(5v•day notice teetered). aoraeaersaa Information on access far persons with disabiitle6.and/or any accammodatm to rMaw any document or a2pbIIsM. 10.011,1110!!'Ab , .. r.r.a, . participate In any Cllvspensored proceedings.call 305.604.24811 and seam 1 for English a 2 for Spanish, rr•a�•! -T.,7(Ly'.iaY.. " .••0�T' •• •"".ee .7 then opiton 6;TTY user,may call Ma 711(Ftodda Relay Service). Wa.wa„i�k �i. _ The City Commladon Meeting will he broadcast INS on Miami Beach TV(MBTV).viewable on the .narrmienroYe aeebenouradMkoYNMpaa>.tazrcvmrior..rr Clly'a wela0e at j7ttaa•l/wvwermlanrlbeaehtl eav/aavemment/mhty/as wen as on Atlantic Broadband Cable 1.......04yam:.ea.Sacco•wagokel lo.aWcore.wnneN orontarroout uoae anran4.4.. 'WC.en Owe 660,AT&T LIverse Marne 99.Hetwve Ctmmuniuiona channel 395,and ROKU alnico on PEG.TV '44m77.r"'°lf"'aa0" 'r.r"m".ueNwtioa..w.a,a.s.pa,-.r .e.Nr.e.u.r..dc.."'wm eN.aro.am ..Stitt*.a.Cbaaarl/waaidn &Stsia1nhwwWNernddaara„iaaN..a.rfW oom ew,r__s channel,and on social media el hItte•Mwsvorfecnbaek cerec3vofmlambeaah• .rdtwaewargdteporm,Maa.,n•fat crdaNAaaMwy.Awne,o'asnYaaaa.n tiawlaApaaa waladmi: aw.,Natalamlw 7..."4•wrialb,r.NalMb.C.AwMw.arwl Read E.Gronodo,City Clerk Ghoul i wade Ma Crna ew 0*vee.aa4 leld Taradarem kwnd a el Cowes foe,Ms h.,wesn.r w.eve=•aW.'i♦ty& ,1�` Gry of Miami Beazh arrd../w,.lffi4 kg r.e.aroa,W.fr.,.a;dW.riJM drat w.it*Me,M'w'peeyeee.a'a:.4...dr nrvrnwa Sur ''�%Ii BEACH Ai*.,ye.ul uawardae min ar ewe.w mktg.n Intim..uae.reraa pi:44a141 L.:unrr uL a,r..ys,;tn,u/M.14111 CjBcarkamiamibeneii0.eek pkpNgs,nt.ta.Mte,.dwa 1•411•001.q4043 Id mlet4t.gbli1 r egvw...tarwe.e•40t4 dawna.g aeHe+rara t.rwo, 305.673.7411 c.I'mPoOtrimitelerijeonlito/G,4MX,IVI Nrw1iedw111115L1400.e.0mtod7r0a.n..dceal.'Ana aor+m b uscotnhdfeadrlr/aa..aann,au.wrn'w,.un•a.r.alvda W wn5IM,,,,,,,M rrtt.wr anoandgir atb.r.warw,a.•,,,,,t,..n ea.wOdt'rsof ef!met.20 nw✓'a.stof Mtn AD;0 1172 0 21-06 Nome,ill efkl.4 4k1..elrlial.errd • • Page 578 of 1095 DocuSign Envelope ID:670697134-4079-43BC-A6B9-7A044BF4E7CD ". M I AM IBEACH • Contract/Document Routing Forth, _ • • . Cohtract Nal " Massage of South Beach,LLC-New Lease Agreement 'Contractor De•artment Facilities and Fleet Management De.attment Dir- t:Seturfe''' ACM Name Stet ture,_ ' Or LS Adrian Morales Lester Sola S ‘--546369F721 81340F. 180o2o9DI Ove4LE ^ "."'''"f;;;;,*i" Seletthhe• ' ' ,e • Type 1—Contract,amendment,change order or task order resulting from a procurement-issued competitive solicitation. Type 2—Other contract,amendment,change order or task order not resulting from a procurement-issued competitive solicitation. Type 3—Independent Contractor Agreement(ICA) X Type 6—Tenant Agreement Type 4—Grant agreements with the City as the recipient Type 7—Inter-governmental agency agreement Type 5—Grant agreements with the City as the grantor Other: &PurOse,atiatfiMierifc'rif s.`aCe is*neCeS-sar - " I Attached please find for your signature a new lease agreement between the City and Massage of South Beach,LLC. as approved pursuant to Resolution No.2021-31893 adopted at the October 13,2021 Commission Meeting. 7Renewal PetiOd's '7. 7 Total:Tenn 5 Years 2(2)year options 9 Years ° ' , - Grant Funded: Yes x No State Federal _ Other: . Cost&Fundin:Source "." •"" „.Year Annual-Cost , : Acccant . Re.uire Enhancement - 1 Yes No 2 Yes No 3 Yes No 4 Yes No 5 Yes No 1.For contracts longer than five years,contact the Procurement Department. 2.Attach any supporting explanation needed. 3. Budget approval indicates approval for current fiscal year only. Future years are subject to City Commission approval of annual adopted operating budget. ?Authlirit e City Commission Approved: x Yes No Resolution No.: CC Agenda Item No.: CC Meeting Date: 2021-31893 R7 A October 13,2021 If no,explain why CC approval is not required: Legal Form Approved: x Yes No If no,explain below why form approval is not necessary: pf, 4,M!.!..rigzta7t, ;,,if Corn.liance"A.'.royals,see`'attached,aztv,t-T:af Procurement: Grants: Budget: Information Technology: ,--DocuSigned by: Risk Management: Fleet&Facilities: Ozzie Dominguez 61.02,11it, • Human Resources: Other: