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Resolution 2023-32798RESOLUTION NO: 2023-32798 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND 4101 NW 37TH AVENUE LLC., AS LANDLORD, FOR USE OF APPROXIMATELY 5,000 RENTABLE SQUARE FEET OF PROPERTY, LOCATED AT 4101 NW 37TH AVENUE, MIAMI, FLORIDA, TO BE USED AS STORAGE SPACE FOR THE ENZO GALLO MURALS AND JACK STEWART'S "APOLLO" MURAL; SAID LEASE HAVING AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON NOVEMBER 15, 2023, WITH ONE (1) ADDITIONAL RENEWAL TERM FOR THREE (3) YEARS; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL LEASE AGREEMENT. WHEREAS, on July 6, 2016, the property owner of the building located at 1200 Lincoln Road obtained the Design Review Board's approval for a new citizen hotel project, and since then, has demolished,the building; and WHEREAS, the building featured four (4) murals; together entitled "The Glory of Old Glory" (the "Murals"), created in 1971 by Italian artist and sculptor Enzo Gallo, an immigrant who fled Italy for Cuba and subsequently emigrated to South Florida; and WHEREAS, the Murals (also referred to as the "Enzo Gallo Murals") were commissioned by the building's former owner, Shepard Broad, developer of the Bay Harbor Islands, and were displayed on the prominent corner of Alton Road and Lincoln Road for more than 50 years; and WHEREAS, prior to the building being demolished, members of the Miami Beach preservation community urged the City to take action to save the Murals as the private property owner had no obligation to save them; and WHEREAS, additionally, Jack Stewart's "Apollo Driving His Sun Chariot Across the Sky" and "Latona and Her Twins" murals are currently undergoing restoration and will also require to be stored until Fire Station No. 1 is ready to receive the installation; and WHEREAS, on June 22, 2022, the Mayor and City Commission adopted Resolution No. 2022-32204, directing the Administration to take all steps necessary to assist with the efforts to remove and store the Murals at an appropriate to -be -determined temporary location, pending selection and approval of a suitable permanent location for the Murals; and WHEREAS, the Miami Design Preservation League ("MDPL") entered into a storage space lease agreement with a private landlord to temporarily store the Murals at no cost, at 1656 Alton Road (the "Storage Facility"); and WHEREAS, however, the storage space lease is set to expire on December 31, 2023, and the Murals must be relocated beforehand; and WHEREAS, on July 20, 2022, the Mayor and City Commission adopted Resolution No. 2022-32230, authorizing the City Manager to execute a Memorandum of Understanding (MOU) between the City and 3425 Collins, LLC ("Developer") pursuant to the requirements of the City's Historic Preservation Board, involving Jack Stewart's "Apollo" Mural; and WHEREAS, said MOU required the developer, at its sole cost, to restore, transport and install the fully restored mural on the new'building for Fire Station No. 1; and WHEREAS, in accordance with Resolution No. 2022-32204, the Administration has researched viable warehouse locations to house the murals until such time a permanent installation is found for the murals; and WHEREAS, Administration is seeking approval to negotiate such a lease agreement with4701 NW 37' Avenue, LLC ., for the Enzo Gallo and Apollo Murals storage, with rental rates of $16 per square foot (PSF) and approximately 5,000 square feet of space as further detailed in the terms below: TENANT: City of Miami Beach, a Florida municipal corporation. LANDLORD: 4101 NW 37th Avenue, LLC. DEMISED PREMISES: 4101 NW 37thAvenue Miami, Florida 33142 SIZE: Approximately 5,000 square feet TERM: 1 Three (3) Years RENEWAL OPTION: One (1) renewal options for three (3) years BASE RENT: $16 per square foot ($80,000 annually; $6,666 monthly) ESCALATION: 3% per year, starting the second lease year LEASE COMMENCEMENT DATE: November 15, 2023 RENT COMMENCEMENT DATE: 30 days after delivery date SECURITY DEPOSIT: Two (2) month's rent ($13,333) USE: The Demised Premises shall be used by the City as a storage location for the Enzo Gallo and Apollo Murals. WHEREAS, the Administration recommends the Mayor and City Commission approve the proposed Lease Agreement between the City and 4101 NW 37th Avenue LLC. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Administration to negotiate a lease agreement between the City of Miami Beach, as tenant, and 4101 NW 37' Avenue LLC., as landlord, for use of approximately 5,000 rentable square feet of property, located at 4101 NW 37th Avenue, Miami, Florida, to be used as storage space for the Enzo gallon murals and Jack Stewart's "Apollo" mural; said lease having an 2 initial term of three (3) years, commencing on November 15, 2023, with one (1) additional renewal terms for three (3) years; and further authorize the City Manager and City Clerk to execute the final lease agreement. PASSED AND ADOPTED this If ATTEST: OCT 2 Q 2023 Rafael E. Granado, City Clerk day of kki, 2023. Dan Gelber, Mayor APPROVED AS TO (FORM & LANGUAGE & FOR EXECUTION :� Ls—/ �Zo?-3 fjW. CRVAtWntiy�,/ CAU Agenda Item C ? F Date 10%' MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov COMMISSION MEMORANDUM TO: Honorable Mayor Dan Gelber and Members of the City Commission FROM: Alina T. Hudak, City Manag DATE: October 18, 2023 SUBJECT:, A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, AS TENANT, AND 4101 NW 37TH AVENUE, LLC., AS LANDLORD, FOR USE OF APPROXIMATELY 5,000 RENTABLE SQUARE FEET OF PROPERTY, LOCATED AT 4101 NW 37TH AVENUE, MIAMI, FLORIDA, TO BE USED AS STORAGE SPACE FOR THE ENZO GALLO MURALS -AND JACK STEWART'S APOLLO MURAL; SAID LEASE HAVING AN INITIAL TERM OF THREE (3) YEARS' COMMENCING ON NOVEMBER 15, 2023, WITH ONE (1) ADDITIONAL RENEWAL TERMS FOR THREE (3) YEARS,; AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL LEASE AGREEMENT. BACKGROUND On July 6, 2016, the property owner of the building located at 1200 Lincoln Road obtained the Design Review Board's approval for a new citizen. hotel project, and since then, has demolished the building. The building featured four (4) murals, together entitled "The Glory of Old Glory" (the "Murals"), created in 1971 by Italian artist and sculptor Enzo Gallo, an immigrant who fled Italy for Cuba and subsequently emigrated to South Florida. The Murals (also referred to as the "Enzo Gallo Murals") were commissioned by the building's former owner, Shepard Broad, developer of the Bay Harbor Islands, and were displayed on the prominent corner of Alton Road and Lincoln Road for more than 50 years. The Enzo Gallo Murals are part of Miami Beach history and have high artistic value. They are one of the few public art works in the City depicting key elements of American history, making the preservation thereof important not just artistically, but as a matter of civic pride. Prior to the building being demolished, members of the Miami Beach preservation community urged 'the City to take action to save the Murals as the private property owner had no obligation to save them. Subject to City confirmation, the owner s representatives indicated the owner would take steps to cut and remove the Enzo Gallo Murals in an effort to preserve them so as long the owner is not responsible for storing the Murals for future installation and provided that the removal does not delay the owner s private project. Consequently, on June 22, 2022, the Mayor and City Commission adopted Resolution No. 2022-32204 directing the Administration to take all steps necessary to assist with the efforts to remove and store the Murals at an appropriate to -be -determined temporary location, pending selection and approval of a suitable permanent location for the Murals. Additionally, said Resolution accepted the owner's donation of the Murals to the City, and referred the foregoing to the Art in Public Places Committee for an advisory recommendation as to potential locations for the placement of the Murals. The Miami Design Preservation League (MDPL) entered into a storage space lease agreement with a private landlord to temporarily store the Murals at no cost, at 1656 Alton Road (the "Storage Facility"). The storage space lease is set to expire on December 31, 2023, and the Murals must be relocated beforehand. The Storage Facility is slated for redevelopment and will soon be undergoing construction; and therefore, unable to continue housing the Murals. Concurrently, on July 20, 2022, the Mayor and City Commission adopted Resolution No. 2022-32230, authorizing the City Manager to execute a Memorandum of Understanding (MOU) between the City and 3425 Collins LLC (Developer) pursuant to the requirements of the City's Historic Preservation Board, involving Jack Stewart's "Apollo" Mural. Said MOU requiring the developer, at its sole cost, to restore, transport and install the fully restored mural on the new building for Fire Station No.1. Jack Stewart's, "Apollo Driving His Sun Chariot Across the Sky' and "Latona and Her Twins" murals are currently, undergoing restoration and will also require to be stored until Fire Station No. 1 is ready to receive the installation. This mural is known as Versailles Hotel mosaic murals installed in 1958-59 on Collins Avenue, by Jack Stewart, whose work is recognized by the Smithsonian and can be found in collections and museums 'throughout America and around the globe. The mural depicts Apollo, of Greek mythology, racing his sun chariot towards his twin sister, the figures identified as Latona, which is the Roman name for Leto — the mother of Apollo and Artemis — alongside her young twins. ANALYSIS In accordance with Resolution No. 2022-32204, the Administration has researched viable warehouse locations to house the murals until such time a permanent installation is found for the murals. Therefore, Administration is seeking approval to negotiate such a lease agreement for the Enzo Gallo and Apollo Murals with rental rates of $16 per square foot (PSF) and approximately 5,000 square feet of space as further detailed in the terms below. The Administration has negotiated the attached Letter of Intent (LOI) attached hereto as Exhibit A prior to entering into the lease. A summary of the proposed lease terms are as follows: TENANT: City of Miami Beach, a Florida municipal corporation. LANDLORD: 4101 NW 37 Avenue, LLC DEMISED PREMISES: 4101 NW 37 Avenue Miami, Florida 33142 SIZE: Approximately 5,000 square feet 2 TERM: Three (3) Years RENEWAL OPTION: One (1) renewal option for three (3) years BASE RENT: $16 per square foot ($80,000 annually; $6,666 monthly) ESCALATION: 3% per year, starting the second lease year LEASE COMMENCEMENT DATE: November 15, 2023 RENT COMMENCEMENT DATE: 30 days after delivery date SECURITY DEPOSIT: Two (2) month's rent ($13,333) USE: The Demised Premises shall be used by the City as a storage location for the Enzo Gallo and Apollo Murals. FINANCIAL INFORMATION The fiscal impact for storing the Enzo Gallo and Apollo Murals is $80,000.00, and it has been funded in FY 2024. AMOUNTS/ACCOUNTS: 011-0534-000323: $60,000.00 011-9322-000343: $50,000.00 CONCLUSION Based on the foregoing, the Administration recommends the Mayor and City Commission adopt the Resolution approving the proposed Lease Agreement between the City and 4101 NW 37 Avenue, LLC for approximately 5,000 rentable square feet of space located at 4101 NW 37 Avenue, Miami, Florida. 9 DocuSign Envelope ID: 23BFA970-A8BA-494C-9744-B8E98443A142 EXHIBIT A October 13, 2023 Dear Alan, M . M MEN chariff R E A L T Y G R O U P COMMERCIAL DIVISION Reference: 4101 NW 37 Avenue Miami FL 33142 (the "Building") I am pleased to present the following general terms and conditions upon which the City of Miami Beach (Tenant) would consider entering into a lease for the premises referenced below: Tenant: City of Miami Beach Address: 1700 Convention Center Drive, Miami Beach, FL 33139 Landlord: 4101 NW 37 Avenue, LLC Premises: 4101 NW 37 Avenue, Miami, FL 33142 Size of Premises: Approx. 5,000 rentable square foot ("RSF") Tenant Use: Storage Lease Term: Three (3) years from Delivery Date Base Rent: $16.00 per rentable square foot per year to be paid in monthly installments plus applicable sales tax. Lease Commencement: Upon mutual execution of a lease agreement Renewal Option: Tenant shall have one (1) three (3) year renewal option ("Renewal Option") DocuSign Envelope ID: 23BFA970-A8BA-494C-9744-B8E98443A142 Delivery Date: November 15th, 2023 Rent Commencement: One (1) Month after Delivery Date. Prepayments: Upon execution of the lease agreement Tenant shall pay its first month's Rent. Rent Increases: Starting on the second year of the Lease Term Annual Rent increases of three percent (3.00%). Tenant's Work: All Tenant's Work must be approved by Landlord and shall be conducted_by a general contractor licensed in the State_ of Florida. Please' provide a list of Tenant's Improvements prior to Landlord's preparation of the lease agreement. Utilities: Tenant shall be responsible for electricity, water, phone, and gas (if applicable). Landlord's work: Tenant shall accept the premises in its "AS IS" Conditions. Lease Form: Modified Gross Lease Agreement to be prepared by Landlord. Brokerage Disclosure: Landlord and Tenant acknowledge that they have not dealt with any real estate broker(s) in this transaction other than KW Commercial representing the Landlord and Chariff Realty Group representing the Tenant. Landlord shall be responsible for the payment of the brokerage commission to Broker pursuant to the terms and conditions of a separate agreement between Landlord and Broker. INTENTIONALLY LEFT BLANK DocuSign Envelope ID: 23BFA970-A86A-494C-9744-B8E98443A142 This proposal is non -binding on either party, but is created and accepted in good faith for both parties to proceed as diligently as possible. The parties understand that neither will be subject to any binding and enforceable obligations until such time as a lease incorporating the agreed upon terms and conditions has been fully executed by the parties. If not accepted, this offer will be withdrawn by October 18th, 2023 I look forward to working with you towards the successful conclusion of this transaction. Very truly yours, Luis Guevara, Chariff Realty Group Agreed and accepted as stated on this 16 ofOctober 1 2023. By: DocuSigned by: Signature: (9y�yu, C 9bE'IfL6 TOEo703�'... On Behalf of: city of Miami Beach Its: Division Director of Asset Management DocuSign Envelope ID: 23BFA970-A8BA-494C-9744-B8E98443A142 Exhibit "A" Landlord's Work Besides the following Landlords Work, Tenant shall accept the premises in its "As -Is" Conditions: - delivered in broom clean conditions free of any debris