2009-26994 ResoRESOLUTION NO. 2009-26994
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROVING, ON SECOND READING
(AND FINAL APPROVAL), A LEASE AGREEMENT
BETWEEN THE CITY AND COLONY THEATER
CAFE, INC. (D/B/A SEGAFREDO'S), AS THE
RECOMMENDED PROPOSER PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 19-07/08,
FOR USE OF THE FACILITY KNOWN AS THE
COLONY THEATRE CAFE, LOCATED AT 1040
LINCOLN ROAD, SAID LEASE HAVING AN INITIAL
TERM OF THREE (3) YEARS, COMMENCING
RETROACTIVELY ON NOVEMBER 1, 2008, AND
ENDING ON OCTOBER 31, 2011, WITH TWO (2)
ADDITIONAL THREE (3) YEAR RENEWAL TERMS.
WHEREAS, on February 13, 2008, the Mayor and City Commission
approved the issuance of Request for Proposals (RFP) No. 19-07/08 for use of the
City-owned facility known as the Colony Theater Cafe; and
WHEREAS, RFP No. 19-07/08 was issued on February 14, 2008, with an
opening date of April 18, 2008; and
WHEREAS, on July 16, 2008, the Mayor and City Commission adopted
Resolution No. 2008-26858, authorizing the Administration to enter into negotiations
with Colony Theatre Cafe, Inc., d/b/a Segafredo, for lease of the City-owned facility
known as the Colony Theatre Cafe; and
WHEREAS, on December 10, 2008, the Mayor and City Commission
adopted Resolution No. 2008-26968, approving on first reading the Lease
Agreement with the Colony Theater Cafe, Inc., (d/b/a Segafredo) for an initial term
of three (3) years, commencing retroactively on November 1, 2008, and ending on
October 31, 2011, with two (2) additional three (3) year renewal terms; and
WHEREAS, the leased premises encompass the first (1St) floor
restaurant/cafe space, a lobby concession area, and a dumpster/storage area,
totaling 1,371 square feet, for which the Administration has negotiated a monthly
base of rent of sixteen thousand six hundred eight dollars and fifty cents
($16,680.50) (which equals a minimum of two hundred thousand one hundred and
sixty six dollars ($200,166.00) per year), or 6.5% of annual gross receipts,
whichever is greater; and
WHEREAS, the City has complied with the requirements of Section 82-39 of
the Miami Beach City Code, governing the sale/lease of public property; and
WHEREAS, an advertised public hearing to obtain citizen input was held on
January 28, 2009; and
WHEREAS, the Administration would hereby recommend that the Mayor
and City Commission approve the attached Lease Agreement on second reading
(and final approval).
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYORAND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission hereby approve, on second reading (and final approval), the
attached Lease Agreement between the City and Colony Theater Cafe, Inc. (d/b/a
Segafredo's), as the recommended proposer pursuant to Request For Proposals
(RFP) No. 19-07/08, for use of the facility known as the Colony Theatre Cafe,
located at 1040 Lincoln Road, said Lease having an initial term of three (3) years,
commencing on November 1, 2008, and ending on October 31, 2011, with two (2)
additional three (3) year renewal terms.
PASSED and ADOPTED this 28t" day of January, 2009.
ATTEST:
Y ~ UVU,~,~
Robert Parcher, CITY CLERK
atti Herrera Bower, MAYOR
JMG\HMF\AP\ACV
T.~IAGENDA120091January 281RegularlColony Theatre Cafe 2nd Reading.RES.doc
AWED AS TO
FORM & LANGUAGE
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving, on second reading, a Lease
Agreement between the City and Colony Theater Cafe, Inc. (D/B/A Segafredo's), for use of the facility known as the Colony Theater
Cafe, located at 1040 Lincoln Road, for an initial term of three (3) years, with two (2) additional three (3) year renewal terms.
To Ensure Well-Maintained Facilities and Increase Community Rating of Cultural Activities ~
Supporting Data (Surveys, Environmental Scan, etc.): 60% of businesses and 66% of residents of say there are the right number
of cultural activities. Residents and businesses are aligned in their preference for the types of cultural activities they'd like to see,
with live music/concerts clear) the most referred.
Issue:
Shall the City Commission Accept the City Manager's Recommendation and approve the proposed lease?
Item Summa /Recommendation:
SECOND READING
On February 13, 2008, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 19-07/08 for use
of the City-owned facility known as the Colony Theater Cafe, encompassing 1371 sq ft. Subsequently, RFP No. 19-07/08 was
issued on February 14, 2008, with an opening date of April 18, 2008.
On July 16, 2008, the Mayor and City Commission adopted Resolution No. 2008-26858, accepting the recommendation of the City
Manager and authorizing the Administration to enter into negotiations with the Colony Theater Cafe, Inc (D/B/A Segafredo's) for the
attached Lease Agreement, with an initial term of three (3) years commencing on November 1, 2008, and ending on October 31,
2011, with two (2) additional three (3) year renewal terms.
On December 10, 2008, the Mayor and City Commission approved on first reading the attached Lease Agreement for an initial term
of three (3) years, commencing on November 1, 2008 and ending on October 31, 2011, with two (2) additional three (3) year renewal
terms.
The Cafe currently holds an active Sidewalk Cafe permit which is nontransferable and is authorized for forty eight (48) tables and
one hundred eighty three (183) seats. The Sidewalk Cafe permit is not part of the leased premises. The Sidewalk Cafe site plan
does not include provisions for use of the area immediately west of the entrance to the Theatre, use of that area by the Tenant will
not be permitted. Additionally, language has been added to the Lease Agreement indicating that the negotiated 6.5% of gross
receipts is inclusive of the receipts generated by the Sidewalk Cafe.
Tenant shall furnish the City with the base rent and/or percentage of gross (whichever is higher) as well as an Irrevocable Letter of
Credit in lieu of a Security Deposit, as agreed to by the City. Rent terms are pursuant to the information gathered per a property
appraisal as required by City Charter, Article II Sale or Lease of Public Property, as well as past performance by the Tenant at the
site over the past five years. The Base Rent amount will be increased annually by the Consumer Price Index (CPI), throughout the
term of the Lease.
The administration has negotiated a base of rent of $146.00 per square foot (minimum of $200,166 a year), or 6.5% of gross -
whichever is greater, to include the receipts of the sidewalk cafe operation. Based on reported 2007 gross receipts of $4,524,997,
the proposed 6.5% would realize a total payment of $294,123, or the equivalent of $214 per square foot. The Base Rent amount will
be increased annually by the Consumer Price Index (CPI) throughout the term of the Lease.
Section 82-39 of the Miami Beach City Code governing the sale/lease of public property, as amended, requires an advertised public
bidding, an independent appraisal of the fair market or rental value of the property, and a Planning Department analysis, as well as
two (2) readings of the proposed lease, with the second (and final) reading followed by an advertised public hearing to obtain citizen
in ut. The Plannin De artment anal sis finds that the use is consistent with the land use desi nation.
Advisory Board Recommendation:
Financial Information:
Source of Funds: Amount Account
1 N/A
Cit Clerk's Office Le islative Trackin
Ana Cecilia Velasco, Asset Manager x 6727
Sign-Offs: , n
Departm' Dir or Assis y n r 'ty Manager
AP ACV HMF
r:WGENDA\2009Uanu ry egular\Colony Theatre Cafe_2nd_Rea~ng.SUM.doc
m MIAMIBEACH
o ~
AGENDA ITEM ' `~
DATE ~~
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 28, 2009
SECOND READING
PUBLIC HEARING
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, ON SECOND READING (AND FINAL
APPROVAL), A LEASE AGREEMENT BETWEEN THE CITY AND COLONY
THEATER CAFE, INC. (D/B/A SEGAFREDO'S), AS THE RECOMMENDED
PROPOSER PURSUANT TO REQUEST FOR PROPOSALS (RFP) N0.19-07/08,
FOR USE OF THE FACILITY KNOWN AS THE COLONY THEATER CAFE,
LOCATED AT 1040 LINCOLN ROAD, SAID LEASE HAVING AN INITIAL TERM OF
THREE (3) YEARS, COMMENCING RETROACTIVELY ON NOVEMBER 1, 2008,
AND ENDING ON OCTOBER 31, 2011, WITH TWO (2) ADDITIONAL THREE (3)
YEAR RENEWAL TERMS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOMES SUPPORTED
To ensure well-maintained facilities and increase community rating of cultural activities.
ANALYSIS
On February 13, 2008, the Mayor and City Commission approved the issuance of Request for
Proposals (RFP) No. 19-07/08 for use of the City-owned facility known as the Colony Theater Cafe.
Subsequently, RFP No. 19-07/08 was issued on February 14, 2008, with an opening date of April
18, 2008.
On July 16, 2008, the Mayor and City Commission adopted Resolution No. 2008-26858, accepting
the recommendation of the City Manager and authorizing the Administration to enter into
negotiations with Colony Theater Cafe, Inc., d/b/a Segafredo for lease of the City-owned facility
known as the Colony Theater Cafe.
On December 10, 2008, the Mayor and City Commission approved on first reading the attached
Lease Agreement for an initial term of three (3) years, commencing on November 1, 2008 and
ending on October 31, 2011, with two (2) additional three (3) year renewal terms.
The Cafe currently holds an active Sidewalk Cafe permit which is nontransferable and is authorized
for forty eight (48) tables and one hundred eighty three (183) seats. The Sidewalk Cafe permit is not
part of the leased premises. The Sidewalk Cafe site plan does not include provisions for use of the
area immediately west of the entrance to the Theatre; use of that area by the Tenant will not be
Commission Memorandum
Colony Theatre Cafe
January 28, 2009
Page 2 of 2
permitted. Language has been added to the Lease Agreement indicating that the negotiated 6.5% of
gross receipts is inclusive of the receipts generated by the Sidewalk Cafe.
Additionally, in response to comments made by Colony Theater Cafe representatives at the
December 10, 2008 Commission meeting, the Colony Theatre management staff will, on a trial
basis, allow items sold at the Lobby Concession for patron consumption into the foyer of the building
just beyond the lobby entrance. Food and beverage will not be allowed in the Theatre house during
performances.
Security Deposit:
Upon execution of the Agreement, the Tenant shall furnish the City with an Irrevocable Letter of
Credit in lieu of a Security Deposit, as agreed to by the City. The guaranty (equal to three months
base/minimum rent) will serve to secure the successful proposer's performance in accordance with
the provisions of the Agreement. In the event the successful proposer fails to perform in accordance
with agreement provisions, the City will present the letter of credit to the issuing bank for payment,
as well as pursue any and all other legal remedies provided for in the agreement, or as may be
provided by applicable law.
Rent and Tenant Improvements:
The City has exercised its right to negotiate the rent terms and rent increase terms pursuant to the
information gathered per the property appraisal as required by City Charter, Article II Sale or Lease
of Public Property, as well as past performance by the Tenant at the site over the past five years.
The administration has negotiated a base of rent of $146.00 a square foot (minimum of $200,166 a
year), or 6.5% of gross -whichever is greater. Based on reported 2007 gross receipts of
$4,524,997, the 6.5% would realize a total payment of $294,123, or the equivalent of $214 per
square foot. The Base Rent amount will be increased annually by the Consumer Price Index (CPI),
throughout the term of the Lease.
Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property requires an
advertised public bidding; an independent appraisal of the fair market or rental value of the property,
which have been completed; two (2) readings of the proposed lease, with the second (and final)
reading followed by an advertised public hearing to obtain citizen input; and a Planning Department
analysis.
The Planning Department analysis finds that the Lease Agreement for the specified use is
consistent with the land use designation contained in the Comprehensive Plan (attached).
CONCLUSION
The Administration recommends that the Mayor and City Commission hereby approve, on second
reading (and final approval), a Lease Agreement between the City and Colony Theater Cafe, Inc.
(d/b/a Segafredo's), pursuant to Request For Proposals (RFP) No. 19-07/08, for use of the facility
known as the Colony Theater Cafe, located at 1040 Lincoln Road, said Lease having an initial term
of three (3) years, commencing on November 1, 2008, and ending on October 31, 2011, with two (2)
additional three (3) year renewal terms.
JMG/HF/AP/ACV
T:WGENDA~2009Wanuary 281RegularlColony Theater Caf~_2nd_Reading.MEM.doc
m MIAMIBEACH
PLANNING DEPARTMENT
INTEROFFICE MEMORANDUM
To: Ana Cecilia Velasco, Asset Manager `''~
FROM: Jorge G. Gomez, Planning Director'1~1f ~' "`~
DATE: December 29, 2008
SUBJECT: Analysis of Proposed Lease Agreement between the City and Colony Theatre
Cafe, Inc. (D/B/A Segafredo's) - 1040 Lincoln Road
Pursuant to your request, this memorandum will serve as a planning analysis of the
proposed lease agreement between The City And Colony Theater Cafe, Inc. (D/B/A
Segafredo's), pursuant to Request For Proposals (RFP) No. 19-07/08, for use of the facility
known as the Colony Theatre Cafe, located At 1040 Lincoln Road, said lease having an
initial term of three (3) years, commencing retroactively on November 1, 2008, and ending
on October 31, 2011, With two (2) additional three (3) year renewal term.
Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or
lease of City-owned land be analyzed from a planning perspective so that the City
Commission and the public are fully appraised of all conditions relating to the proposed sale
or lease. The following is an analysis of the criteria delineated in the Code:
1. Whether or not the proposed use is in keeping with city goals and objectives
and conforms to the city comprehensive plan.
Consistent -The subject property, the Colony Theatre, is characterized as a
Cultural Institution, serving the needs of the entire community and contains several
public facilities. The Future Land Use Map of the City's Comprehensive Plan
designates the site as GU, Municipal Use.
The Lease Agreement between the City and Colony Theater Cafe, Inc., for use of
the facility known as the Colony Theatre Cafe would be consistent with the land use
designation contained in the Comprehensive Plan.
2. The impact on adjacent property, including the potential positive or negative
impacts such as diminution of open space, increased traffic, noise level or
enhanced property values, improved development patterns and provision of
necessary services. Based on the proposed use of the property, the city shall
determine the potential impact of the project on city utilities and other
infrastructure needs and the magnitude of costs associated with needed
infrastructure improvements. Should it become apparent that further
evaluation of traffic impact is needed, the proponent shall be responsible for
obtaining a traffic impact analysis from a reputable traffic engineer.
Proposed Lease -Colony Theater Cafe, Inc.
Colony Theater- 1040 Lincoln Road.
December 19, 2008
Page 2
Consistent -The property subject to the lease is the Colony Theater Cafe, part of
the Colony Theater on Lincoln Road. The property has been and is currently in use
as a theater venue with a variety of entertainment activities, and an accessory
restaurant/cafe. There would be no diminution of open space as no new
construction is being proposed. No additional utility or infrastructure is expected to
be necessary.
3. A determination as to whether or not the proposed use is in keeping with a
public purpose and community needs, such as expanding the city's revenue
base, creating jobs, creating a significant revenue stream, and improving the
community's overall quality of life.
Consistent -The proposal generates income to the City, and there is a potential to
create additional jobs. The benefits of having such a facility within the City's theater
facility on Lincoln Road are important.
4. Determination as to whether or not the development is in keeping with the
surrounding neighborhood, will block views or create environmental
intrusions, and evaluation of the design and aesthetic considerations of the
project.
Consistent -The surrounding neighborhood consists of the Lincoln Road shopping
and dining area, and the Flamingo Park residential neighborhood to the south. It is
located within the Flamingo Park Historic District. The continued use of this building
will not be out of character with the surrounding uses.
5. The impact on adjacent properties, whether or not there is adequate parking,
street and infrastructure needs.
Consistent- The impact on adjacent properties should be minimal, as the facility is
already in use. Parking is available nearby. No further infrastructure needs are
anticipated.
6. A determination as to whether or not alternatives are available for the
proposed disposition, including assembly of adjacent properties, and whether
the project could be accomplished under a private ownership assembly.
Not applicable -This property is part of the larger assembly of the City-owned
Convention Center parcel. No assembly of land is necessary, nor would such be
under private ownership. Placing such a community oriented cultural facility on
privately owned land is probably not a feasible option economically.
7. Within the constraints of public objectives, the department should examine
financial issues such as job generation, providing housing opportunities, and
the return to the city for its disposition of property.
The lessee's .cafe provides jobs to the community and a welcomed food and
beverage operation on Lincoln Road, and serves the needs of the Colony Theater
operations.
8. Such other issues as the Planning Department may deem appropriate in
analysis of the proposed disposition.
Planning Staff has not identified any further items.
JGG/RGL
F:\PLAN\$ALL\GEN_CORR\INTEROFF\Shapiro Segafredo Coly Theater Cafe planning analysis.doc
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