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2009-27275 ResoRESOLUTION NO. 2009-27275 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A CONSENT TO ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT AND A FIRST AMENDMENT TO THAT CERTAIN LEASE AGREEMENT BY AND BETWEEN THE CITY AND ROMA WAXING, INC., DATED JULY 15, 2009 , FOR THE LEASE OF 1,290.59 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 3 (A.K.A. 771 17TH STREET), MIAMI BEACH, FLORIDA, WHICH PROVIDES FOR ROMA WAXING, INC. (AS TENANT/ASSIGNOR) TO ASSIGN ITS LEASEHOLD INTEREST TO SB WAXING, INC. (AS THE NEW TENANT/ASSIGNEE); FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAME 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, approving a Lease with Roma Waxing, Inc. for the a portion of City-owned property, located at 771 17th Street, which Lease expired on November 30, 2008; and WHEREAS, on July 15, 2009, the Mayor and City Commission adopted Resolution No. 2009-27129, entering into a new Lease Agreement with Roma Waxing, for 1,290.59 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a.k.a. 771 17th Street), Miami Beach, Florida, which Lease expires on July 31, 2012; and WHEREAS, Roma Waxing, Inc. (hereinafter Tenant/Assignor) has requested that the City consent to an assignment and assumption of the Lease Agreement to SB Waxing, Inc. (hereinafter new Tenant/Assignee); and WHEREAS, concurrent with approval and execution of the attached Consent to Assignment and Assumption of Lease Agreement, a First Amendment to the Lease Agreement is also necessary to reflect Tenant/Assignee's notification information; and WHEREAS, the Administration would hereby recommend that the Mayor and City Commission approve the attached Consent to Assignment and Assumption of Lease Agreement and First Amendment to the Lease Agreement. 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 the attached Consent to Assignment and Assumption of Lease Agreement and First Amendment to that certain Lease Agreement by and between the City and Roma Waxing, Inc., dated July 15, 2009, for the lease of 1268.87 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a.k.a. 771 17 h Street), Miami Beach, Florida, which provides for Roma Waxing, inc. (as Tenant/Assignor) to assign its leasehold interest to SB Waxing, Inc. (as the new Tenant/Assignee) and further authorizing the Mayor and City Clerk to execute same. PASSED and ADOPTED this 9th day of December, 2009. ATTEST: Get, Robert Parcher, CITY CLERK tti Herrera Bower, MAYOR JMG\HMF\AP\rlr F:\RHCD\$ALL\ECON\$ALL\ASSET\777-17th Street\Roma\ConsentToAssignment8~1stAmendment.RES.doc a~aovEO as m FORM & LANQUAQE d~ F08 EXECUTION ~~ COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving a Consent to Assignment and Assumption, and First Amendment of the City's Lease Agreement with Roma Waxing, Inc. for use of 1,290.59 SF of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a.k.a. 771 17th Street), which provides for Roma Waxing to assign its leasehold interest to SB Waxing, Inc. ,ey rntenaea outcome supportea: 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 City Commission approve the Consent to Assignment and Assumption of the Lease Agreement and a First Amendment to the Lease Agreement? item summaryir•cecommenaatron: 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. On June 19, 2002, the City Commission adopted Resolution No. 2002-24900, approving a Lease with Roma Waxing, Inc. for the aportion ofCity-owned property, located at 1701 Meridian Avenue, Unit 3 (a.k.a. 771 17th Street), which Lease expired on November 30, 2008. Subsequently, on July 15, 2009, the Mayor and City Commission adopted Resolution No. 2009-27129, entering into a new Lease Agreement with Roma Waxing, for use of the same City-owned property, which Lease expires on July 31, 2012. Two of the three principals of Roma Waxing, Inc. have created SB Waxing, Inc., a new corporate entity. Roma Waxing, Inc. has requested that the City consent to an assignment and assumption of the Lease Agreement to SB Waxing, Inc. Concurrent with approval and execution of the Consent to Assignment and Assumption of Lease Agreement, a First Amendment to the Lease Agreement is also necessary to reflect SB Waxing's notification information. Advisory Board Recommendation: Financial Information: Source of Funds: Amount Account n/a ~- n/a Financial Impact Summary: Clerk's Office Legisl~ is Parekh. ext. 6471 Sign-Offs: Department Director Assista City Manager City Manager AP H JMG T:\AGENDA\2009\December 9\Regular\Roma Waxing Consent To Assignmen~ & 1 Amendment.S~c Q ~ ~ AGENDA DATE C~~ (~ ~ ~ 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 Commission FROM: Jorge M. Gonzalez, City Manager DATE: December 9, 2009 +~ ~/ SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A CONSENT TO ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT AND A FIRST AMENDMENT TO THAT CERTAIN LEASE AGREEMENT BY AND BETWEEN THE CITY AND ROMA WAXING, INC., DATED JULY 15, 2009, FOR THE LEASE OF 1,290.59 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 3 (A.K.A. 771 17TH STREET), MIAMI BEACH, FLORIDA, WHICH PROVIDES FOR ROMA WAXING, INC. (AS TENANT/ASSIGNOR) TO ASSIGN ITS LEASEHOLD INTEREST TO SB WAXING, INC. (AS THE NEW TENANT/ASSIGNEE); FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAME ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND At its October 17, 2001 meeting, the City Commission passed Resolution No. 2001-24661 authorizing 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. At that time, it was determined that retention of the retail component would be conducive to maintaining and enhancing the pedestrian character of the linkage between Lincoln Road Mall and the Civic/Convention Center area. This past year, staff conducted a space planning analysis of City-owned buildings, reviewed and approved by the Finance and Citywide Projects Committee, which indicated that the usage of the first floor of 1701 Meridian Avenue building was to remain a primary use for commercial retail space. ANALYSIS Among its leases with retail operators at 1701 Meridian Avenue (a.k.a. 771 17th Street), the City has been leasing retail space to Roma Waxing, Inc. (Roma) for use as a hair removal facility. The City first entered into a Lease Agreement with Roma Waxing, Inc. on June 19, 2002, pursuant to Resolution No. 2002-24900, which Lease expired on November 30, 2008. Upon expiration of the Lease, Roma Waxing continued to occupy the retail space Commission Memorandum Roma Waxing, Inc. December 9, 2009 Page 2 of 2 until the aforementioned space planning analysis was completed. On July 15, 2009, the Mayor and City Commission adopted Resolution No. 2009-27129, entering into a new Lease Agreement with Roma Waxing, Inc. for 1,290.59 s~uare feet ofCity-owned property, located at 1701 Meridian Avenue, Unit 3 (a.k.a. 771 17 h Street), Miami Beach, Florida, which Lease is scheduled to expire on July 31, 2012. Roma Waxing, Inc. is a family-owned Florida corporation. Its three principals are as follows: 1) Noemi Grupenmager, President/Director, along with her two daughters; 2) Romina Szperling, Director; and 3) Vanesa Szperling, Director. In September 2009, two of the Directors of Roma Waxing, Inc. (daughters Romina and Vanesa) created SB Waxing, Inc., a new Florida corporation. Roma Waxing (as Tenant/Assignor) has requested that the City consent to an assignment and assumption of the Lease Agreement to SB Waxing, Inc. (as Tenant/Assignee). A Consent to Assignment and Assumption of Lease Agreement, if approved by the City Commission, will permit SB Waxing, Inc. to assume the Lease Agreement for use of 1290.59 square feet ofCity-owned property, commencing on January 1, 2010, through the Lease expiration date of July 31, 2012. Pursuant to the Consent to Assignment and Assumption of Lease Agreement ,Roma Waxing, Inc. is assigning to SB Waxing, Inc., and SB Waxing, Inc. is assuming from Roma Waxing, Inc., all of Roma's rights, title, interest and obligations pursuant to the Lease Agreement. Concurrent with the approval and execution of the Consent to Assignment and Assumption of Lease Agreement, a First Amendment to the Lease Agreement is also necessary to reflect SB Waxing's notification information. All other terms and conditions of the Lease Agreement shall remain unchanged and in full force and effect. CONCLUSION The Administration recommends that the Mayor and City Commission consent to an Assignment and Assumption of Lease Agreement, and First Amendment of the Lease Agreement by and between the City and Roma Waxing, Inc. for the lease of the City- owned property, located at 1701 Meridian Avenue, Unit 3 (a.k.a. 771 17th Street), Miami Beach, Florida, to be assumed by SB Waxing, Inc. JMG\HMF\AP\rlr T:\AGENDA\2009\December 9\Regular\Roma Waxing Consent To Assignment & 1st Amendment.MEM.doc