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2009-27048 ResoRESOLUTION NO. 2009-27048 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE RENEWAL OF THE LEASE AGREEMENT BETWEEN THE CITY AND LOG CABIN ENTERPRISES, INC. FOR APPROXIMATELY 52,000 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED ON THE WEST SIDE OF COLLINS BETWEEN 81ST AND 82ND STREETS, MIAMI BEACH, FLORIDA SAID TERM COMMENCING ON AUGUST 1, 2009 AND ENDING ON JULY 31, 2012; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT OF THE LEASE AGREEMENT AMENDING THE DEMISED PREMISES TO INCLUDE THE ADJACENT 2,500 SQUARE FOOT ONE-STORY BUILDING LOCATED AT 8128 COLLINS AVENUE; CORRECT THE SQUARE FOOTAGE OF THE DEMISED PREMISES; INCREASE THE BASE RENT; AND EXPAND THE USE AND POSSESSION OF THE DEMISED PREMISES. WHEREAS, in 1983, the Miami Beach Activity Center, afterfunctioning as a City program from 1975 through 1983, incorporated as Log Cabin Enterprises, Inc. and continued to provide a sheltered work site plant nursery for the developmentally disabled adults being trained at the Log Cabin Training Center located adjacent to the nursery; and WHEREAS, the City of Miami Beach established and maintained the Log Cabin Training Center, located at 8128 Collins Avenue, from 1975 through 2005 as a service of the City designed to provide vocational training and support for developmentally disabled adults; and WHEREAS, on March 10, 2005, the City issued a Request for Proposals (RFP) for an entity to assume the administration and management of the Log Cabin Training Center and its various programs, resulting in The Sunrise Community Group, Inc. selected as the first-ranked proposer; and WHEREAS, on July 6th, 2005, the City Commission approved the Lease Agreement with The Sunrise Community Group, Inc., for the use of the 2,500 square foot one-story building of City-owned property at 8128 Collins Avenue (the Sunrise Lease Agreement); and WHEREAS, on July 20, 2006, the City Commission adopted Resolution No. 2006-26268 approving a Lease Agreement between the City and Log Cabin Enterprises, Inc. for the use of approximately 52,000 square feet in the City-owned property at 8128 Collins Avenue (the Log Cabin Lease Agreement); and WHEREAS, July 31, 2009 is the termination date of the Sunrise Lease Agreement with no options for renewal and July 31, 2009 is the current termination date of the Log Cabin Lease Agreement, with an option for two additional three year terms, at the sole discretion of the City Manager; and WHEREAS, the City wishes to exercise the renewal of the Log Cabin Lease Agreement for a period of three years term and further amend the Log Cabin Lease Agreement to include the training center (formerly part of the Sunrise Lease Agreement, effective August 1, 2009). 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 the renewal of the Lease Agreement between the City and Log Cabin Enterprises, Inc. for approximately 52,000 square feet of City- owned property, located on the west side of Collins between 81 st and 82"d Streets, Miami Beach, Florida with a term commencing on August 1, 2009 and ending on July 31, 2012, further authorizing the Mayor and City Clerk to execute a First Amendment of the Lease Agreement amending the Demised Premises to include the adjacent 2,500 square foot one-story building located at 8128 Collins Avenue, correcting the square footage of the Demised Premises, increasing the base rent, and expanding the use and possession of the Demised Premises. PASSED and ADOPTED this 22"d day of April, 2009. ATTEST: ~ ~~~ Robert Parcher, CITY CLERK Matti Herrera Bower, MAYOR JMG\HMFIAPWCV T.•IAGENDA120091April 221RegularlLog Cabin 1stAmendment and renewal 2009.RES.doc APPROVED AS TO FORM ~ LANGUAGE ~ FOR i~ECUTION itrl~q COMMISSION ITEM SUMMARY Condensed Title Request for Approval to renew a lease agreement between the City and Log Cabin Enterprises, Inc. for the lease of approximately 5200 sf of City-owned property on the west side of Collins between 81St and 82nd Streets and authorizing a First Amendment to include the adjacent 2,500 sf one-story building located at 8128 Collins Avenue, correct the square footage, increase the base rent and expand the use and possession of the demised premises. Key Intended Outcome Supported: To Ensure Well-Maintained Facilities Supporting Data (Surveys, Environmental Scan, etc.): 83% of residents surveyed felt that recent capital improvement projects were either excellent or good. Issue: Should the Cit a rove the renewal and First Amendment of the lease a reement? rcem summaryircecommenaation: On March 11, 2009 the Neighborhoods/Community Affairs Committee (NCAC) voted to move forward to the City Commission, with no recommendation, the issue regarding a request from the Sunrise Community Group, Inc. for a new lease for the Adult Developmental Training Center (ADT) for three years in order to be commensurate with the Log Cabin Nursery lease which expires on July 31, 2009 and is eligible for renewal. The Log Cabin Enterprises, Inc., which operates the Log Cabin Nursery, is an affiliate of the Sunrise Community Group, Inc. and serves as a sheltered work program in conjunction with the ADT. The Log Cabin Nursery lease was a three year with two options for a three year renewal term. The Log Cabin ADT lease terminates July 31, 2009 with no renewal terms. After consulting with the Planning Department, it was determined that there is currently no plan for the City use of the Log Cabin site or for any of the "west lots'. The NCAC discussion centered on the current use of the facility as a service for those adults developmentally challenged and whether the City should allow Sunrise Community Group, Inc. the opportunity to continue in its current function. There is currently no active urban plan utilizing this site, staff recommends that an assessment of the site; for inclusion and activation in urban planning in the area be initiated so that a determination could be made in the future of the highest and best use based on the assessment. A change at this location would necessitate planning, development and approvals which could begin at this juncture but would not be accomplished immediately; this could allow the ADT to continue during the interim. Sunrise Community Group, Inc. was initially awarded the lease agreementforthe ADT site through an RFP process and has operated the facility since September 1, 2005. Sunrise Community Group, Inc. assumed the financial liability forthe Log Cabin Nursery when the agencies merged on July 1, 2007. By continuing the ADT for an additional three years, Sunrise Community Group, Inc. would be allowed to plan for a future site in order to continue the ADT operations, should the City determine an alternative use for the property after the planning assessment is completed. By amending the current lease agreement with Log Cabin Enterprises, Inc. for the sheltered work-site nursery, the City is able to bring the property in entirety into one agreement, while continuing to allow the permitted uses and terms as currently indicated in the agreements. The current lease agreement for the Log Cabin Enterprises, Inc., to operate the nursery was approved by the Commission to commence August 1, 2006 and pays a base rent of $1 annually plus operating expenses as anon-profit entity. The Sunrise Community Group, Inc. pays a base rent of $7,200 annually. The City Commission waived by 5/7ths vote the competitive bidding and appraisal process as this entity had been operating for some time under the auspices of the City. The Administration recommends that the City Commission approve the renewal of the lease with the Log Cabin Nursery and execute a First Amendment to include the adjacent 2,500 sf one-story building located at 8128 Collins Avenue utilized as the ADT; correct the square footage; include the ADT rent in the base rent; and expand the use and possession of the demised premises. Adviso Board Recommendation: On March 11, 2009 the Neighborhoods/Community Affairs Committee voted to move forward to the City Commission the issue of Sunrise Community Grouo. Inc.'s reauest for a new lease with no recommendation. Financial Information: Source of Amount Account Funds: n/a Financial Impact Summary: Cit Clerk's Office Le islative Trackin Ana Cecilia Velasco extension 6727 Sign-Offs: I ,-. Department i o Assistan Cit Manager City Manager AP ACV JMG T.~IAGENDA120091A 11 egularlLogCabinlstAmendmdptandrenewa/2009.SUlN.lv{~c m MIAMIBEACH ~v AGE3'~t®A ITEM C7H ©ATE _ Y o~02-05 m MIAMIBEACH City of Miami Beath, 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: April 22, 2009 SUBJECT: A RESOLUTION OF THE MAYOR AN ITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE RENEWAL OF THE LEASE AGREEMENT BETWEEN THE CITY AND LOG CABIN ENTERPRISES, INC. FOR APPROXIMATELY 52,000 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED ON THE WEST SIDE OF COLLINS BETWEEN 81ST AND 82ND STREETS, MIAMI BEACH, FLORIDA SAID TERM COMMENCING ON AUGUST 1, 2009 AND ENDING ON JULY 31, 2012; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FIRST AMENDMENT OF THE LEASE AGREEMENT AMENDING THE DEMISED PREMISES TO INCLUDE THE ADJACENT 2,500 SQUARE FOOT ONE-STORY BUILDING LOCATED AT 8128 COLLINS AVENUE; CORRECT THE SQUARE FOOTAGE OF THE DEMISED PREMISES; INCREASE THE BASE RENT; AND EXPAND THE USE AND POSSESSION OF THE DEMISED PREMISES. ADMINISTRATION RECOMMENDATION Approve the Resolution. BACKGROUND The City of Miami Beach established and maintained the Log Cabin Training Center, located at 8128 Collins Avenue, from 1975 through 2005 as a service of the City designed to provide vocational training and support for developmentally disabled adults. The Center housed three programs: Adult Developmental Training (ADT); Supported Employment (SE); and Supported Independent Living (SIL). Although a separate entity and facility, the adjacent Log Cabin Nursery served as a sheltered work site to provide employment to the clients of the training center. In this way, the clients were able to implement the training they were receiving in the same proximity. The nursery, located at 8108-8140 Collins Avenue, served as part of the City of Miami Beach Activity Center from 1975 through 1983 as a service of the City designed to provide a sheltered work site for the developmentally disabled adults being trained at the Log Cabin Training Center located adjacent to the nursery. In 1983, the Miami Beach Activity Center incorporated as Log Cabin Enterprises, Inc, anot-for-profit entity, and was funded by the City through a Community Development Block grant until 2003. As anon-profit entity, Log Cabin Enterprises continued operations without City of Miami Beach funds through outside funding sources and fundraisers, as well as retail sales. As a separate entity no longer affiliated with the City, Log Cabin Enterprises Inc. continued its work on the premises through a lease agreement with the City. The Log Cabin Nursery is used solely for the purpose of providing an educational and sheltered work program for developmentally disabled adults in a retail/wholesale nursery, and other ancillary retail activity. The Tenant pays a base rent of $1 annually. The Tenant is responsible for the operation, maintenance and repair of the facility at its sole cost and expense. Commission Memorandum Sunrise Log Cabin April 22, 2009 Page 2 of 3 The lease agreement for the Log Cabin Enterprises, Inc., to operate the nursery was approved by the Commission and executed on August 1, 2006 and has an expiration date of July 31, 2009. The initial term was for three years, with an option of two additional three year terms at the sole discretion of the City Manager. Should the City allow the Log Cabin to exercise both renewal options, the lease would end on July 31, 2015. The City Commission waived by 5/7ths vote the competitive bidding and appraisal process as this entity had been operating for some time under the auspices of the City. This allowed the two entities to remain independent due to the relationship of client (training center clients) and provider (nursery sheltered worksite), while allowing the City the benefit and protection of a lease agreement. On March 10, 2005, the City issued a Request for Proposal (RFP) for an entity to assume the administration and management of the Log Cabin Training Center (ADT) and its various programs. The Sunrise Community, Inc. submitted the first-ranked proposal to the Request for Proposal (RFP). On July 6`h, 2005, the City Commission approved the Administration's recommendation to proceed in entering into a management agreement with The Sunrise Community, Inc. to operate the ADT. However, after careful consideration and extensive review, and in light of their occupancy of a City-owned facility, the Administration recommended a lease agreement instead of a management agreement. The lease agreement incorporated the scope of services requested in the RFP and included specific language to ensure that existing programming and services remained consistent. The Classroom Building is used by Sunrise Community Group, Inc. solely as a vocation training site for up to a maximum of thirty-five (35) developmentally disabled adults, as defined by the State of Florida Developmental Disabilities Home and Community-Based Services Waiver Programs. Sunrise Community Group, Inc. currently serves 34 individuals ages 18 and older. Of those individuals seared, eight are residents of the City of Miami Beach. The Tenant pays a base rent of $7,200 annually in twelve monthly installments. The Tenant is responsible for the operation, maintenance and repair of the facility at its sole cost and expense; the City provides Sunrise Community Group, Inc. with no operational funding. The first Lease Agreement with Sunrise Community Group, Inc. for the Log Cabin Training Center commenced on September 1, 2005 and was due to end on August 31, 2008. This lease terminated early and a second Lease Agreement was negotiated to allow a new agreement for the ADT to be coterminous with the lease for the Log Cabin Nursery, and the tenant to provide improvements to the ADT. The City Commission adopted Resolution No. 2008-26807 approving this lease agreement at its meeting of April 16, 2008. The second Lease Agreement commenced May 1, 2008 and has an ending date of July 31, 2009. There are no options for renewal. On July 1, 2007, the Log Cabin Enterprises, Inc, became an entity of the Sunrise Community Group, Inc., and remained the governing authority over the nursery's sheltered work program in order to sustain the independence of client and provider. As such, the two lease agreements, although under separate Tenancies, are essentially under the umbrella corporation of the Sunrise Community Group, Inc. Both leases are currently in compliance with all terms. NEIGHBORHOODS COMMITTEE REVIEW In anticipation of the end of the lease term for the ADT, staff referred to the Neighborhoods/Community Affairs Committee (NCAC) a discussion on the proposed next steps for the training center. Options included issuing a Request for Proposals for the training center; entering a new agreement (which requires a waiver of the competitive process); or identifying other uses for the site. After consulting with the Planning Department, it was assessed that there is currently no plan for the Log Cabin site or for any of the "west lots," and any proposed use would require extensive regulatory and planning review. Commission Memorandum Sunrise Log Cabin April 22, 2009 Page 3 of 3 The NCAC discussion on March 11, 2009 centered on the current use of the facility as a service for those adults that are developmentally challenged and whether the City should allow Sunrise Community Group, Inc. the opportunity to continue in its current function. As there is no active urban plan utilizing this site, an assessment of the site for inclusion and activation in urban planning in the area can be initiated and a determination of the highest and best use based on the assessment made at the conclusion of that assessment process. A change at this location would necessitate planning, development and approvals which could begin at this juncture, but would not be accomplished immediately, thus allowing for the ADT to continue during the interim. Additionally, the Sunrise Community Group, Inc. has indicated that they do not have the resources to respond to a Request for Proposals should that be a determination of the City. Sunrise Community Group, Inc. was awarded the lease agreement through the RFP process and has operated the facility since September 1, 2005. By continuing the ADT for an additional three years, Sunrise Community Group, Inc. would be allowed to plan for a future site in order to continue the ADT operations, should the City determine an alternative use forthe property after the planning assessment is complete. The NCAC voted to move forward to the City Commission, with no recommendation, the issue regarding a request from the Sunrise Community Group, Inc. for a new lease for the Adult Developmental Training Center (ADT) for three years in order to be commensurate with the Log Cabin Nursery lease, which serves as a sheltered work program in conjunction with the ADT and is also under the auspices of the Sunrise Community Group, Inc. However, by amending the current lease agreement with Log Cabin Enterprises, Inc. for the sheltered work-site nursery to include the adjacent ADT, and renewing the agreement as provided for and available in the Log Cabin nursery lease, the City is able to bring the property in entirety into one agreement, while continuing to allow the permitted uses and terms as currently indicated in the agreements. Sunrise Community attended the March 11, 2009 Committee meeting and expressed their desire to continue its current function at that location. CONCLUSION The Administration recommends that the City Commission approve the renewal of the Lease Agreement with Log Cabin Enterprises, Inc. and further approving the First Amendment of the Lease to include the 2,500 square foot one-story building used for the Adult Developmental Training Center; increase the base rent to $7,200 annually commensurate with the amount currently received for the ADT; correct the square footage based on the Miami-Dade County property records; and renew the lease agreement for the term of three years, providing time for the City to study the area for potential future use. JMG\HMFWPWCV\mis Attachments (2) T.•IAGENDA120091Apri12211?egularlLog Cabin 1stAmendmentandrenewa12009.MEM.doc EXHIBIT 1 Demised Premises 82nd Street ~ : `~d ~`` __~. -~; ~:. ~_ 6