Letter re: Authorization to Operate Concessiona7~ay-2ssoid
CITY OF IVIIAiV;, BEACH
1700 CONVENTION CENTER DRIVE. MIAMI BEACH. FLORIDA 33139
OFFICE OF ASSET MANAGEMENT / BEACHFRONT CONCESSIONS Facsimile 305 fi04-2437
Jose Damien, Asset Manager Telephone 305 673-7000 Ext. 6727
Rober4 Reboso, Assistant Asset Manager Telephone 305 673.7000 Ext. 6443
March 1, 2004
Mr. Jack Penrod
President
Penrod Brothers, Inc.
One Ocean Drive
Miami Beach, FL 33139
RE: AUTHORIZATION TO OPERATE BEACHFRONT CONCESSION SEAWARD OF THE DUNE
LYING EAST OF PIER PARK, LOCATED AT ONE OCEAN DRIVE, MIAMI BEACH, FLORIDA
Dear Mr. Penrod:
Please be advised that the City of Miami Beach (City) has concluded its review of your request for
authorization to operate the above referenced beachfront concession. Furthermore, pursuant to Resolution
No.2001-24678, adopted by the Mayor and City Commission on November 28, 2001, your request has been
approved for Fiscal Year 200312004, subject to the following conditions:
Penrod Brothers, Inc. (hereinafter referred to as Concessionaire) is hereby authorized to operate the
following beach concession(s):
Beach Equipment -r+r foo/~w B~/.se2~oGe~ C3~/o5~~
2. Any City Occupational License(s) required forthe beachfront concession(s) authorized in Paragraph 1
above, must be secured concurrent with your acceptance of the terms and conditions of said
authorization. Said acceptance shall be deemed to have occurred upon execution of this Letter
Agreement by all parties hereto. Please be reminded that the respective City Occupational License(s)
must be obtained prior to the placement of any equipment or facilities on the beachfront and prior to
commencement of any beachfront operation.
3. Minimum Guarantee (MG):
In exchange for use of the beachfront area located at One Ocean Drive, Concessionaire agrees,
commencing retroactively on November 5, 2001, and thereafter on October 1 of each Fiscal Year
(October 1-September 30) during the term of this Agreement, as well as any renewal terms, to pay to
the City a Minimum Guaranteed Annual Concession Fee (MG) equal to Ten Thousand ($10,000)
~ol~ Dollars or~i##ee~-(~~S~A) percent of Concessionaire's gross receipts, whichever is greater. The MG
shall be payable as monthly percentage rent to the City by the fifteenth (15) day of each month forthe
preceding month, and said payment shall be accompanied by a statement of gross receipts for the
preceding month. At the end of each Fiscal Year, Concessionaire shall deliver to the City an Annual
Statement of Gross Receipts, and shall also pay, if applicable, to the City any adjustmentdue the City.
~~~~
For each Fiscal Year, in the event that the amount equal to fart-(-1 percent of Concessionaire's
gross receipts does not meet the Ten Thousand ($10,000) Dollar MG amount, then Concessionaire
shall also pay an additional lump-sum amount to the City, equal to the difference between the
percentage of gross receipts amount and the MG amount provided above; said amount payable in full
at the time of delivery to the City of the Annual Statement of Gross Receipts, or no later than October
30, of each Fiscal Year.
4. Concessionaire agrees that any change, modification, or other deviation or amendment to the
provisions and terms of this Agreement must be approved in writing by the City, through its,Office of
Asset Management, said approval to be at City's sole discretion, prior to implementation of same.
5. Nothing herein cont~ J shall be construed to relieve Concess .ire, its employees, or sub-
contractors from complying with the Rules and Regulations for Beachfront Concession Operations,
attached hereto as Exhibit A, and as same may be amended from time to time, or any other
applicable City, County, State, or Federal laws or requirements. As a courtesy, the City may provide
copies of amendments of the Rules and Regulations to concessionaires; however, it shall ultimately
be the Concessionaire's responsibility to be aware of and, as deemed necessary by Concessionaire,
to obtain copies of the latest set of said Rules and Regulations for Beachfront Concession
Operations.
6. The authorization granted herein does not provide for the placement of any concession facility, or
storage facility, on the beachfront unless such facilities have received appropriate City Design Review
approval, if required.
Concessionaire shall indemnify, defend and hold the City harmless from any and all claims, liability,
losses, and causes of action which may arise out of the Concessionaire's use of the beachfront under
this Agreement and shall pay all claims and losses of any nature whatsoever in connection therewith
and shall defend all suits, in the name of the City, and shall pay all costs {including attorney's fees)
and judgments which may issue thereon, This indemnification shall not be limited in any way by the
type or amount of insurance carried by Concessionaire. For purposes of this Paragraph 7,
Concessionaire shall be deemed to include any sub-contractors, employees, agents, andlor any other
person or entity acting under the direction or control of the Concessionaire.
8. Any litigation between the parties, arising out of, or in connection with this Letter Agreement, shall be
initiated in the court system of the County of Miami-Dade, State of Florida.
The Concession Permit granted herein shall not be construed to vest any additional rights upon the
Concessionaire that do not otherwise exist, except for the privilege of temporary use of the beachfront
in accordance with the conditions set forth herein, in the Rules and Regulations and all other
applicable Municipal, State, County and Federal law.
Concessionaires is hereby notified that all of the beaches are public and as such concession
operations must not restrict, or appear to restrict access, or in any way limit the public nature
or ambiance of the beachfront. Beach chairs shall be deployed in a manner that will assure
public access and will encourage public use of the beach, taking into consideration the
characteristics of the individual property involved. Failure to comply with the above and the
approved Beachfront Concession Area, as delineated in attached Exhibit B, shall result in
termination of this agreement.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS LETTER AGREEMENT, THE CITY MAY,
FOR ITS CONVENIENCE, AND AT ITS 50LE DISCRETION AND WITHOUT CAUSE, TERMINATE THIS
AGREEMENT AT ANY TIME BY GIVING THIRTY (30) DAYS WRITTEN NOTICE TO YOU OF SUCH
TERMINATION, WHICH SHALL BE EFFECTIVE AS OF THE DATE SO SPECIFIED IN SAID WRITTEN
TERMINATION.
Your signature below acknowledges your understanding and acceptance of the terms stated above.
I, Jack Penrod, as authorized representative for Penrod Brothers, Inc., hereby understand and acknowledge
the terms and conditions outlined above and agree to abide with said terms and conditions.
15 /o~. ~
.`~ •~ ~~-----~ Pik ~
Authorized Representative for Date Witness
Penrod Brothers, Inc.
Jose mie r~ et Manager Date
fort City of Miami Beach
DR\PENRODBEACHFRONTCONCESSIONAGREEMENT.LTR.DOC
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