2009-27129 ResoRESOLUTION NO. 2009-27129
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING ON SECOND READING (AND
FINAL APPROVAL), FOLLOWING A DULY NOTICED PUBLIC HEARING,
A LEASE AGREEMENT BETWEEN THE CITY AND ROMA WAXING, INC.
(D/B/A UNI.K WAX), FOR USE OF 1,290.59 SQUARE FEET OF CITY-
OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 3
(A/K/A 771 17T" STREET), MIAMI BEACH, FLORIDA; SAID LEASE
HAVING AN INITIAL TERM OF THREE YEARS, WITH AN ADDITIONAL
THREE YEAR RENEWAL TERM, AT THE CITY'S SOLE DISCRETION;
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
LEASE AGREEMENT
WHEREAS, on October 17, 2001, the City Commission adopted Resolution No.
2001-24661, authorizing the purchase of 1701 Meridian Avenue with the intention of
preserving the retail environment on the ground floor of the property; and
WHEREAS, on June 19, 2002, the City Commission adopted Resolution No. 2002-
24900, authorizing the Mayor and City Clerk to execute a lease agreement between the
City and Roma Waxing, Inc. having an initial term of three (3) years, commencing on
December 1, 2002, and ending on November 30, 2005, with an additional three (3) year
renewal term, commencing on December 1, 2005, and expiring on November 30, 2008;
and
WHEREAS, Roma Waxing has requested a new lease, said proposed lease having
an initial term of three years, commencing August 1, 2009 and ending July 31, 2012, with
one additional three year renewal term, to continue providing hair removal services in their
current space; and
WHEREAS, Section 82-39 of the Miami Beach City Code, governing the sale/lease
of public property, requires a competitive bidding process, a Planning Department analysis,
and an independent appraisal to determine the value of the leasehold interest, 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 input; and
WHEREAS, on June 3, 2009, pursuant to Resolution No. 2009-27096, the Mayor
and City Commission approved the Lease Agreement on first reading; waived by 5/7cns
vote, the competitive bidding and appraisal requirements; and set the public hearing on
July 15, 2009, for second reading and final approval of the Lease Agreement; and
WHEREAS, said public hearing was held on July 15, 2009.
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 hereby approve on second reading (and final approval), following a duly
noticed public hearing, a Lease Agreement between the City and Roma Waxing, Inc. (d/b/a
Uni.K Wax) for use of 1290.59 square feet of City-owned property, located at 1701
Meridian Avenue, Unit 3 (a/k/a 771 17th Street), Miami Beach, Florida for an initial term of
three years, with an additional three year renewal term, at the City's sole discretion, and
authorizing the Mayor and City Clerk to execute the Lease Agreement.
PASSED and ADOPTED this 15th day of July, 2009.
ATTEST:
Robert Parcher, CITY CLERK Matti He era ower, MAYOR
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving, on second reading, following a duly noticed public hearing, a Lease Agreement between the City and
Uni.K Wax Center for use of 1290.59 SF of City-owned property located at 1701 Meridian Avenue, Unit 3, for a term of three
years, with an additional three year renewal term.
Key Intended Outcome Supported:
Increase resident satisfaction with the level of services and facilities.
Supporting Data (Surveys, Environmental Scan, etc.): Approximately 40% of retail businesses surveyed, rank Miami Beach as
one of the best places to do business and 61 % of the same group would recommend Miami Beach as a place to do business.
Issue:
Should the Ci a rove the lease a reement?
item summa iKecommenaation:
SECOND READING 8~ PUBLIC HEARING
In 2001, the City Commission authorized the purchase of 1701 Meridian Avenue to address the City's ongoing need for
administrative office expansion. Also in consideration was the preservation of a retail environment on the ground floor of the
property. When the City purchased the building, Uni.K Wax Center had been an existing tenant of the retail space since 1999.
The lease governed approximately 1290 square feet ofCity-owned property. The square footage was corrected to 1290.59 per
a 2008 City survey. Uni.K Wax Center will continue to lease space at the same location on a month-to-month basis until a new
lease is fully approved by the City Commission. The proposed new lease will incorporate the following terms:
• Square Footage: 1290.59 per updated 2008 City survey.
• Rent: Tenant has agreed to a rent increase from the currently paid $39.75 per SF to $41.07 per SF, including Common
Area Maintenance (which includes maintenance, real estate taxes, and insurance);
• Security Deposit: Upon execution of the Agreement, the Tenant will furnish the City a Security Deposit in the sum of
$5, 000.
Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements, by 5/7ths vote of the Mayor
and City Commission, upon a finding by the Mayor and City Commission that the public interest would be served by waiving
such conditions. At the March 10, 2009, meeting of the Finance and Citywide Projects Committee, the Committee determined
that it was in the public's best interest to forgo competitive bidding for the leasing of City-owned surplus space usable for
commercial retail/office space, and staff should proceed in leasing the identified leasable space in the 1701 Meridian Avenue
Building according to market rates and industry standards.
On June 3, 2009, pursuant to Resolution No. 2009-27096, the Mayor and City Commission approved the Lease Agreement on
first reading; waived by 5/7th vote, the competitive bidding and appraisal requirements; and set the public hearing on July 15,
2009, for second reading and final approval of the Lease A reement.
Adviso Board Recommendation:
Finance & Ci _ ide Projects Committee, March 10, 2009
Financial Information:
Source of Funds: Amount Account
nia ~ 1 ~ n/a - ---
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
~ Ana Cecilia Velasco extension 6727
Si n-Offs:
Department Director Assistant Manager City Manager
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City ommission
FROM: Jorge M. Gonzalez, City Manager
DATE: July 15, 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),
FOLLOWING A DULY NOTICED PUBLIC HEARING, A LEASE AGREEMENT
BETWEEN THE CITY AND ROMA WAXING, INC. (D/B/A UNI.K WAX CENTER), FOR
USE OF 1,290.59 SQUARE FEET OFCITY-OWNED PROPERTY, LOCATED AT 1701
MERIDIAN AVENUE, UNIT 3 (A/K/A 771 17T" STREET), MIAMI BEACH, FLORIDA;
SAID LEASE HAVING AN INITIAL TERM OF THREE YEARS, WITH AN ADDITIONAL
THREE YEAR RENEWAL TERM, AT THE CITY'S SOLE DISCRETION; AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE LEASE AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOMES SUPPORTED
To ensure well-maintained facilities.
ANALYSIS
On October 17, 2001, the City Commission passed Resolution No. 2001-24661 authorizing the
purchase of the building at 1701 Meridian Avenue in order to address the City's ongoing need for
administrative office expansion. At the time, the preservation of a retail environment on the ground
floor of the property was considered and it was determined that retention of the retail space was
conducive to maintaining and enhancing the pedestrian character of the linkage between Lincoln
Road Mall and the Civic/Convention Center area. Staff recently conducted a space plan which
recommended that the usage of the ground floor of the 1701 Meridian Avenue Building remain a
primary use for commercial retail space.
When the City purchased the building, Roma Waxing (d/b/a Uni.K Wax Center) had been an
existing retail tenant since 1999. The lease governed approximately 1290 square feet ofCity-owned
property and the rent had been adjusted over the term with CPI increases to the current rental rate
of $39.75 per SF, including CAM costs.
Roma Waxing has remained in the space on a month-to-month tenancy since December 1, 2008,
pending Commission review of the City's Space Planning needs. This review was concluded on
March 10, 2009, and continued commercial leasing of retail space at 1701 Meridian Avenue was
recommended. Roma Waxing has requested a new lease for an initial term of three years
commencing August 1, 2009, and ending July 31, 2012, with one additional three year renewal term.
The Tenant will continue to provide a hair removal facility, including waxing and facials and retail
sales of related items in its current space, and has agreed to the terms outlined below.
Commission Memorandum
Roma Lease Agreement
July 15, 2009
Page 2 of 3
Summary of Terms:
Square Footage: 1290.59 per updated 2008 City survey.
Rent: Tenant has agreed to increase the rent from the current rate of $39.75 per SF, including
CAM, to $41.07 per SF, including CAM.
Common Area Maintenance (CAM) costs: Amended to $13.60 per SF (increased from current
$13.07 per SF) to reflect current costs, and which includes payment of operating expenses, real
estate taxes, and insurance.
Security Deposit: Tenant shall furnish the City a Security Deposit in the sum of $5,000.
Review of Comparable Market Analysis:
A review of nearby available space revealed that the asking price for ground floor retail space at
1680 Meridian Avenue is $30 per SF NNN (Triple Net). Retail space at 1560 Lenox Avenue is being
marketed at $38-$40 per SF Gross.
Additionally, City staff consulted area real estate brokers who focus on this market (including the
Lincoln and Alton Road corridors) regarding realistic area comparables in the current market and
were informed that the realistic range for rents in the retail portion of the 1701 Meridian Avenue
building could run from $35-$45 per SF NNN, with the lower end of the spectrum being more
realistic in today's environment. It was suggested that due to the absence of tourist traffic in the
area, the focus on leasing any new space should remain local service oriented, such as the City's
current retail tenants. Therefore, the proposed rent of $41.07 per SF Gross for Uni.K Wax Center is
within the range of market rates, and the use of the retail space is feasible for market and area
conditions.
CONCLUSION
Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, provides
that the lease of any City-owned property, including option periods, requires the following:
1) a public bidding process;
2) Planning Department analysis;
3) an independent appraisal to determine the value of the leasehold interest
4) two (2) readings of the proposed lease; and
5) a public hearing to obtain citizen input.
Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements,
by 5/7ths vote of the Mayor and City Commission, upon a finding by the Mayor and City Commission
that the public interest would be served by waiving such conditions. At the March 10, 2009 meeting
of the Finance and Citywide Projects Committee, the Committee determined that it was in the
public's best interest to forgo competitive bidding and staff should proceed in leasing the identified
leasable space in the 1701 Meridian Avenue Building according to market rates and industry
standards.
A Planning Department analysis finds that the use of this area as retail space is consistent with the
land use designation contained in the Comprehensive Plan.
On June 3, 2009, pursuant to Resolution No. 2009-27096, the Mayor and City Commission
approved the Lease Agreement on first reading; waived by 5/7th vote, the competitive bidding and
Commission Memorandum
Roma Lease Agreement
July 75, 2009
Page 3 of 3
appraisal requirements; and set the public hearing on July 15, 2009, for second reading and final
approval of the Lease Agreement.
Based on the aforementioned, the favorable experience and payment history with the current
Tenant, and the current market conditions, the Administration recommends that the Mayor and City
Commission approve, on second reading, the Lease Agreement by and between the City and Roma
Waxing, Inc. (D/B/A Uni.K Wax Center), for the lease of 1,290.59 square feet of City-owned
property, located at 1701 Meridian Avenue (a/k/a 771 17~' Street), Miami Beach, Florida, for an initial
term of three years, with one additional three year renewal term, at the City's sole discretion, and
authorized the Mayor and City Clerk to execute the Lease Agreement.
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