2009-27282 ResoRESOLUTION NO. 2009-27282
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 THE MIAMI BEACH
FILM SOCIETY, INC. (D/B/A MIAMI BEACH CINEMATHEQUE), FOR USE
OF APPROXIMATELY 2,523 SQUARE FEET OF CITY-OWNED
PROPERTY, LOCATED AT 1130 WASHINGTON AVENUE, 1ST FLOOR
SOUTH, MIAMI BEACH, FLORIDA; SAID LEASE HAVING AN INITIAL
TERM OF THREE YEARS, WITH TWO ADDITIONAL THREE YEAR
RENEWAL TERMS, AT THE CITY'S SOLE DISCRETION; AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE THE LEASE AGREEMENT
WHEREAS, on October 21, 2008, the Finance & Citywide Projects Committee
(F&CPC) acknowledged that the City-owned Historic City Hall building (the "Building") was
not needed for City offices and instructed the Administration to advertise, market and
negotiate leases for available spaces within the Building; and
WHEREAS, Miami Beach Film Society, Inc., d/b/a the Miami Beach Cinematheque
(Cinematheque) has expressed interest in leasing space on the 1St floor of the Building;
and _
WHEREAS, on September 3, 2009, the F&CPC approved the proposed lease, said
proposed lease having an initial term of three (3) years, commencing March 1, 2010 and
ending February 28, 2013, with two (2) additional three (3) year renewal terms, at the City's
sole discretion; 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 October 14, 2009, pursuant to Resolution No. 2009-27239, the
Ma~or and City Commission approved the Lease Agreement on first reading; waived by
5R vote, the competitive bidding and appraisal requirements; and set the public hearing
on December 9, 2009, for second reading and final approval of the Lease Agreement; and
WHEREAS, said public hearing was held on December 9, 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 the Miami Beach Film
Society, Inc. (d/b/a Miami Beach Cinematheque), for use of approximately 2,523 square
feet of City-owned property, located at 1130 Washington Avenue, 1St Floor, Miami Beach,
Florida; said Lease having an initial term of three years, with two additional three year
renewal terms, at the City's sole discretion; authorizing the Mayor and City Clerk to execute
the Lease Agreement.
PASSED and ADOPTED this 9th day of December, 2009.
ATTEST:
c~.~~
Robert Parcher, CITY CLERK
atti Herre a Bower, MAYOR
JMG\HMF\AP\rlr
F:~RHCD~$ALL~ECON~$ALLWSSET~OLDCITYUAB Film Society~Cinematheque Lease 2nd Reading RES.doc
APPROVED AS TO
FORM 8- L/1Nt3UAt3L
-BrFOR EXECUTION
~~. ~ - ~~
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving, on second reading, following a duly noticed public hearing, a Lease between the Ciry and
Miami Beach Film Society, Inc. (d/b/a Miami Beach Cinematheque), for use of 2,523 SF of City-owned property
located at 1130 Washington Avenue, 1 S` floor, for a term of three years, with 2 additional 3 year renewal terms.
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 ofthe 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 Commission a rove the lease a reement?
Item Summa /R@COmmenUatlOn:
SECOND READING 8~ PUBLIC HEARING
On October 21, 2008, the Finance & Citywide Projects Committee (F&CPC) acknowledged that the City-owned
Historic City Hall building (the "Building") was not needed for City offices and instructed the Administration to
advertise, market and negotiate leases for available spaces within the building. On September 3, 2009, the
F&CPC approved the proposed lease. The Administration recommends the following terms:
• Square Footage: 2,523 SF per updated 2009 City survey;
• Term: Three years with two additional three year renewal terms;
• Base Rent: $20 per PSF - $23,135.91 annually, payable monthly @ $1,927.99, with 3% annual increase;
• Additional Rent: $27,324.09 annually, payable monthly @ $2,277.01, to offset City's operating expenses
and insurance costs; tenant pays for electricity.
• Security Deposit: The Administration recommends $4,205 (equivalent of one month's rent) payable upon
execution of the Agreement; and an additional $4,205 payable ten days prior to the Commencement
Date of the Agreement. However, on October 14, 2009, the City Commission approved Tenant's
requests to apply the second half of the Security Deposit to Tenant's rent payment for the latter of either:
1) the month of the Rent Commencement Date (June 2009), or 2) the first month after Tenant's
completion of Tenant's improvements.
Section 82-39 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 F&CPC, the Committee determined that
it was in the public's best interest to forgo competitive bidding and staff should proceed in leasing available space
in the Building according to market rates and industry standards. A Planning Department analysis finding that the
use of this space is consistent with the land use designation contained in the Comprehensive Plan.
On October 14, 2009, pursuant to Resolution No. 2009-27239, the Mayor and City Commission approved the
Lease Agreement on first reading; waived by 5/7"'S vote, the competitive bidding and appraisal requirements; and
set the public hearing on December 9, 2009, for second readin and final approval of the Lease A reement.
Adviso Board Recommendation:
Finance & Ci ide Projects Committee, October 21, 2008, March 10 2009 and Se tember 3 2009
Financial Information:
Source of Funds: Amount Account
n/a 1 n/a
Financial Im act Summa
City Clerk's Office Legislative Tracking:
~ Anna Parekh, extension 7193
Sign-Offs:
Dep t Director Assista City anager City Manager
AP HF ~ JMG
T:WGENDA~2009~December 9~Regular\Cinematheque Lease 2nd Reading SUM.doc U
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AGENDA ITEM ~~B
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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 C' Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 9, 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 THE MIAMI BEACH FILM SOCIETY, INC. (D/B/A MIAMI
BEACH CINEMATHEQUE), FOR USE OF APPROXIMATELY 2,523 SQUARE FEET OF
CITY-OWNED PROPERTY, LOCATED AT 1130 WASHINGTON AVENUE,1ST FLOOR
SOUTH, MIAMI BEACH, FLORIDA; SAID LEASE HAVING AN INITIAL TERM OF
THREE YEARS, WITH TWO ADDITIONAL THREE YEAR RENEWAL TERMS, 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
Increase resident satisfaction with the level of services and facilities.
BACKGROUND
At the October 21, 2008 and March 10, 2009 meetings of the Finance & Citywide Projects Committee
(F&CPC), and following a comprehensive review of the City's office space use, it was determined that
Historic City Hall would not be fully re-occupied by City offices, resulting in leasable space availability for
non-City uses. The Committee directed the Administration to advertise and market the available leasable
space, a total of approximately 14,194 sq. ft., including the ground floor, but exclusive of the second floor
space utilized by the Clerks of the Courts.
At the meeting, the F&CPC also approved the Administration's recommendation that the process of
developing lease agreements based on supply and demand be utilized for the leasing and occupancy of
these available spaces at Historic Old City Hall, and that any future commercial leases (including renewals
and/or extensions) for use of space at Historic City Hall be handled as it is in the private sector and not
through a competitive bid process, with the administration ensuring that market rates are negotiated and
operating expenses included. All leases would continue to require City Commission approval per City Code.
ANALYSIS
The Miami Beach Film Society, Inc. d/b/a the Miami Beach Cinematheque (hereinafter referred to as
"Cinematheque") is snot-for-profit, 501(c)3 organization that currently operates a 50-seat cinema on
Espanola Way. Earlier this year, they approached the City regarding available space at Old City Hall for
purposes of relocating their current cinema, in a desire to locate the cinema in an area that is more visible
and can accommodate additional patrons and parking. The Cinematheque's proposed use of the space
provides for a use that offers diversity in the immediate area, and provides potential foot traffic. The
Cinematheque is proposing to expand its current primary operation of a cinema to include several ancillary
Commission Memorandum
MIAMI BEACH FILM SOCIETY
December 9, 2009
Page 2 of 5
daytime uses, such as retail and gallery/exhibition space (including dance, music, and theatrical
performances, educational seminars, and a film museum), "Made in Miami Movie Tour", library /bookstore,
gift shop, and cafe/concession stand. Additionally, the Cinematheque is proposing the creation of a
photographic arts gallery and film museum with changing exhibitions from international sources and from its
own archive, which includes one of the world's most complete collections of film history related memorabilia.
One of the museum's attractions would be the "Made in Miami Movie Tour," which would originate at the
space with a digital presentation, and continue around the City visiting the famous movie locations. They
propose to also provide matinee screenings of films and other special events, all supplemented by the
Cinematheque's concession and coffee service, which would remain open throughout the day and evening.
LEASE TERMS
At the September 3, 2009, F&CPC meeting, staff presented a lease for consideration involving the southern
portion of the first floor of the building with Cinematheque for the relocation of its current cinema. This 2,523
square foot portion of the first floor is the space previously occupied by the Parking Department, and was
therefore not completely redone with the rest of the building's renovation. Partial demolition occurred after
the Parking Department vacated the space.
The Cinematheque proposed a base rent of $20 per square foot to include Insurance, Common Area
Maintenance and Operating Expenses. Since the space is separately metered, they would assume the cost
for electricity. While the proposed base rent is lower than the appraised base rent forthis building (appraisal
provided at the September 3, 2009 Finance Committee meeting), the proposed lease was recommended as
it would provide for an active use in that space, while acknowledging the non-profit status of the organization
and the benefits it provides to the community. This lease would be subject to the standard three percent
escalator, annually.
Additionally, at F&CPC, the Administration recommended an initial term of three, (3) years, with two renewal
terms of three (3) years each. It was initially proposed and presented to Committee that the City would
assume responsibility for the demolition of interior walls, with Cinematheque retaining responsibility for the
build out, which was estimated by Cinematheque at $50,000. The City's estimated demolition cost was
$6,500. At that time, the Cinematheque requested, and staff supported, atwo-month Tenant Improvement
Credit.
The F&CPC recommended approving the lease agreement, but modified the lease terms to require the
Cinematheque to provide a minimum number of daylight hours of operation. In addition, the Committee
removed the City's responsibility for the demolition of the interior walls and, instead, increased the tenant
improvement credit to three (3) months. Based on these recommendations, the proposed lease
commencement date would be March 1, 2010, with a rent commence date of June 1, 2010. The
Cinematheque subsequently clarified that the minimum operating hours will be from 11:00 a.m. to 10:30
p.m., for a minimum of five days per week.
Subsequent to the F&CPC meeting and in the process of finalizing the lease document, the Administration
advised the Cinematheque of the amount required for the security deposit. Security deposits are industry
standards and, in this case, would further protect the City as this space is being removed as an available
asset for the City to actively market for at least six months. Therefore, the Administration proposed an
$8,410 security deposit, payable in two installments: the first installment of $4,205 would be due and
payable upon execution of the lease; the second installment of $4,205 would be due and payable ten days
prior to the Lease Commencement Date.
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:
Commission Memorandum
MIAMI BEACH FILM SOCIETY
December 9, 2009
Page 3 of 5
1) a public bidding process;
2) Planning Department analysis (attached as Exhibit A);
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 5/7~'S
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.
On October 14, 2009, pursuant to Resolution No. 2009-27239, 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 December 9, 2009, for second reading and final approval of the
Lease Agreement. During the City Commission's discussion, the Cinematheque requested a waiver of the
security deposit. The City Commission did not grant the Cinematheque's request and informed them that
that both security deposit installments must be paid in accordance with the lease terms. However, the City
Commission instructed the Administration to apply the second installment of the security deposit to the
Cinematheque's rent payment for the latter of either; 1) the month of the Rent Commencement Date, or 2)
the first month after completion (i.e.: issuance of Certificate of Completion) of the Cinematheque's
improvements.
The Administration recommends that the Mayor and City Commission hereby approve on second and final
reading, following a duly noticed public hearing, a Lease Agreement between the City and Miami Beach
Film Society, Inc., for use of approximately 2,523 square feet of City-owned property, located at 1130
Washington Avenue, 1ST Floor South, Miami Beach, Florida; said Lease having an initial term of three
years, with two additional three year renewal terms, at the City's sole discretion; and further authorizing the
Mayor and City Clerk to execute the Lease Agreement.
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Commission Memorandum
MIAMI BEACH FILM SOCIETY
December 9, 2009
Page 4 of 5
EXHIBIT A
m MIAMI BEACH
PLANNING DEPARTMENT
INTEROFFICE MEMORANDUM
To: Anna Parekh, Real Estate, Housing & Comm. Development Director
FROM: Richard G. Lorber, Acting Planning Director ~;,~~,* _~-:•~.~.~..
DATE: November 19, 2009 .,..-,.,,..,...u-m
sUB~ECT: Analysis of Proposed Lease Agreement for Miami Beach Film Society, Inc.
1S` Floor, Old City Hall, 1130 Washington Avenue
Pursuant to your request, this memorandum will serve as a planning analysis of the
proposed lease agreement. between the City and Miami Beach Film Society, Inc. (Tenant),
for approximately 2,523 square feet for space on the south side of the 1S` floor of the City-
owned property known as Historic City Hall, located at 1130 Washington Avenue. The
subject location is proposed to be used by the Miami Beach Cinematheque as cinema,
coffee/concession services and gallery/museum/exhibition space, and the lease agreement
is for an Initial term of three (3) years, with two (2) additional three (3) year renewal terms, at
the City's sole discretion.
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 apprised 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 property is located within the PF Public Facilities future land use
category, and surrounded by the CD-2 medium intensity commercial future land use
category. The proposed use is for cinema, coffee/concession services and
gallery/museum/exhibition space. The lease agreement between the City and Miami Beach
Film Society, Inc. is consistent with the future land use category description 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.
Consistent -The property subject to the lease is in the existing Historic City Hall,
and previously was used as office space. 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.
Commission Memorandum
MIAMI BEACH FILM SOCIETY
December 9, 2009
Page 5 of 5
Proposed Lease - M/ami Beach Film Society, fnc.
151 Floor, Old City Ha11, 1730 Washington Avenue
November 19, 2009
Page 2
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 will accrue approximately $23,135.91 per year in rent,
plus operating expenses to the City, and there is a potential to create additional jobs. The
revenue stream generated will help defray the cost of maintenance needs of Historic City
Hall.
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 Washington Avenue
commercial corridor and the City of Miami Beach Police Headquarters. This cinema,
coffee/concession services and gallery/museum/exhibition space on the 1st floor of Historic
City Hall should not be out of character with the surrounding uses. View and environmental
considerations are not applicable.
5. The impact on adjacent properties, whether or not there is adequate parking,
street and infrastructure needs.
Consistent -The previous use on this property was office space. The conversion of
a portion of this space to theater use may be expected to increase the demand for parking in
the area. There is no parking requirement within this district, however, six parking spaces
are proposed to be made available to the Cinematheque in the adjacent parking garage,
which should help to address this concern. 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 is a City-owned property, of which this proposed use is a small
portion of the available space. No assembly of land is necessary, nor would such be under
private ownership.
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 properly.
Consistent -The proposed lease agreement will help to defray the cost of
maintenance of the building. No housing opportunities will be created.
8. Such other issues as the Planning Department may deem appropriate in
analysis of the proposed disposition.
Not applicable -The Planning Department has no other issues it deems appropriate
to analyze for this proposal.
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