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2010-27558 Resolution t RESOLUTION NO. 2010 -27558 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY. OF MIAMI' BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A NEW SOVEREIGNTY SUBMERGED LAND LEASE (BOT FILE NO. 130765469) FOR THE MIAMI BEACH MARINA BY AND AMONG THE CITY AND THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), AS LESSEE, AND THE BOARD OF ' THE INTERNAL IMPROVEMENT'TRUST FUND OF THE STATE OF FLORIDA, AS LESSOR; SAID LEASE HAVING A TERM OF TWENTY FIVE (25) YEARS, COMMENCING ON APRIL 28, 2010, AND ENDING ON JANUARY 21, 2036 h WHEREAS, on January 21 1.986, the City of Miami Beach ( "City ") and the Trustees of the Internal Improvement Trust Fund of the State of Florida ( "Trustees ") entered into Sovereignty Submerged Land Lease No. 130765469, as recorded in Official Record Book 13020 Pages 2520 through 2526, of the Public Records of Miami- Dad e.County, Florida, for the Miami Beach Marina (the "Submerged Land Lease"); and WHEREAS, on June 16, 1990, the City authorized' an amendment to the Submerged Land Lease, as recorded in Official Records Book 15593, Pages 1915 and 1916 of the Public Records of Miami -Dade County, Florida; and WHEREAS, on October 6, 1993, the City�authorized a further amendment to the Submerged Land Lease, as recorded in Official Records Book 16509, at Page 3694 of the Public Records of Miami -Dade County, Florida - and Official Records Book 16171 , -Page 673; and WHEREAS, on May 18, 2005, pursuant Resolution No. 2005 -25904 and RDA Resolution No. 503 - 2005, the Submerged Land Lease was further modified to clarify the existing uses at the Miami Beach Marina; and WHEREAS, the Submerged Land Lease. provided for a term of twenty five (25) .years, which will expire on January 20, 2011; and WHEREAS, the City /RDA is contractually 'obligated under the Marina Lease to' maintain a current submerged land lease with the State in full force and effect; and WHEREAS, the Administration and the Marina Tenant have negotiated a new twenty five (25) year Submerged Land Lease with the Trustees, attached hereto for the City Commission / RDA's consideration and approval (the new Sovereignty Submerged Land Lease); said Lease commencing on April 28, 2010, and ending on January 21, 2036.. NOW THEREFORE, BE IT. DULY RESOLVED BY THE MAYOR. AND CITY i COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission, authorize the Mayor and City Clerk to execute a -new Sovereignty Submerged Land Lease (BOT File No. 130765469) for the Miami Beach Marina by and among the City and the Miami Beach Redevelopment Agency, as Lessee, and the Board of the Internal Improvement Trust Fund of the State of Florida, as Lessor; said lease having a term of twenty five (25) years, commencing on April 28, 2010, and ending on f January 21, 2036. PASSED AND ADOPTED THIS 17 day of NOVEMBER 2010. Attest: v Y V Robert Parcher, CITY CLERK atti Herrera Bower; MAYOR F: \RHCD \$ALL \ECON \$ALL\ASSET \MARINA \NEW SOVEREIGNTY SUBMERGED LAND LEASE CMB.RES.DOC 1 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION k rney Date E t . i COMMI ITEM SUMMARY Condensed Title: i [ A Resolution approving and authorizing the Mayor and City Clerk to execute a new sovereignty submerged land lease for the Miami Beach Marina by and among the City and the Miami Beach Redevelopment Agency (RDA), as Lessee, and the Board of the Internal Improvement Trust Fund of the State of Florida, as Lessor. 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 g roup would recommend Miami Beach as a place to do business. Issue: Should the City Commission approve the lease agreement? Item Summa /Recommendation: As one of its contractual obligations under the Lease Agreement between the City and RDA, as Lessor, and Miami Beach Marina Associates, Ltd., as Lessee, for the Miami Beach Marina (the Marina Lease), the City /RDA is required to maintain its Submerged Land Lease with the State of Florida —for the submerged lands immediately adjacent to the Marina and comprising that portion of the Marina Leased Premises defined as "Area 2 ( which currently contains the area for the piers /boat slips utilized by the _Marina in its daily operations) -- current and in full force and effect. Accordingly, on January 21, 1986, the City and the Trustees of the Internal improvement Trust Fund of the State of Florida entered into Sovereignty Submerged Land Lease No. 130765469, as recorded in Official Record Book 13020, pp. 2520 through 2526, of the Public Records of Miami -Dade County, Florida, and .as subsequently amended thereto (the Existing Submerged Land Lease). The Existing Submerged Land Lease provided for a term of twenty five years, which will expire on January 20, 2011. Since 2008, the Administration and Marina Lessee have been coordinating a new Submerged Land Lease with the State, which is attached hereto for the City Commission /RDA's consideration and approval (the New Submerged Land Lease). The New Submerged Land Lease is also for a term of twenty five (25) years. The substantive terms and conditions are the same as the Existing Lease, with the exception of the following: 1. Sq. ft. has been revised to reflect the actual SF of the submerged land area —from 1,648,911, to 1,648,937 (an additional 26 sq. ft.). 2. The actual current number of boat slips -416 (368 slips and 48 transient slips) —is now referenced. 3. The section of the Lease pertaining to "Use of (the) Property" has been clarified to reflect current uses and now includes liveaboards. 4. Commencing with the first year of the new Lease term, the annual rent is estimated to be between $176,000 and $178,000. 5. The new Lease now prohibits ANY operation of or entry onto the leased premises of gambling cruise ships or vessels that are used principally for the purpose of gambling. 6. The new Lease also references Miami Beach Marina Associates, Ltd. as the current Marina Lessee. In addition to these exceptions, which denote changes from language in the Existing Lease, the State has also added the following additional section, containing "Special Lease Conditions, as follows: 1. Providing that ninety percent (90 %) of all wet slips must be made available for rental to the general public. 2. Allowing the State certain rights with respect to review and modification of Lease terms and conditions, including Lease 3. Reserving its rights to adjust the rent. 4. Extending the City's obligation to remove certain pilings currently situated on the area referred to as "Pelican Island ". 5. Requiring State authorization, in the event the City /RDA seeks to rebuild or restore any "non -water dependent structures ". The City /RDA Administration and City Attorney's Office have reviewed the proposed.New Submerged Land Lease, as submitted by the State, and would recommend that the Mayor and City Commission approve same. As initially set forth above, the City /RDA is contractually obligated under the Marina Lease to maintain a current submerged land lease with the State in full force and effect. Adviso Board Recommendation: n/a Financial Information: Source of Funds: Amount Account 1 $178,000 011 9322 - 000353 Financial Impact Summary: City Clerk's Office Legislative Tracking: Anna Parekh, extension 7193 Sign Anna Parekh; Department Director Hilda errTdez, Assistant City Manager Jorge M. on ale ,City Manager AP H JMG �. T`.WGENDA\2010 \November 17 \Regular \Marina Subme ged Land Lease.SUM.doc A A _ AGENIDd�. IITE;,M C I '., DATE, tl -t(� MIAMI BEACH OFFICE OF THE CITY ATTORNEY JOSE SMITH, CITY ATTORNEY COMMISSION MEMORANDUM TO Mayor Matti Herrera Bower and Mernbers of the City Commission FROM: Jose Smith, City Attorn y CC: Jorge Gonzalez, City Manager DATE: November 17, 2010 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A NEW SOVEREIGNTY SUBMERGED LAND LEASE (BOT FILE NO. 130765469) FOR THE MIAMI BEACH MARINA BY AND AMONG THE CITY AND THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), AS LESSEE, AND THE BOARD OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA, AS LESSOR As one of its contractual obligations under the Lease Agreement between the City and RDA, as Lessor, and Miami Beach Marina Associates, Ltd., as Lessee, for the Miami Beach Marina (the Marina Lease), the City /RDA is required to maintain its Submerged Land Lease with the State of Florida —for the submerged lands immediately adjacent to the Marina and comprising that portion of the Marina Leased Premises defined as "Area 2" ( which currently contains the area for the piers /boat slips utilized by the Marina in its daily operations) -- current and in full force and effect. Accordingly, on January 21, 1986, the City and the Trustees of the Internal Improvement Trust Fund of the State of Florida entered into Sovereignty Submerged Land Lease No. 130765469, as recorded in Official Record Book 13020, pp. 2520 through 2526, of the Public Records of Miami -Dade County, Florida, and as subsequently amended thereto (the Existing Submerged Land Lease). The Existing Submerged Land Lease provided for a term of twenty five years, which will expire on January 20, 2011. Since 2008, the Administration and Marina Lessee have been coordinating a new Submerged Land Lease with the State, which is attached hereto for the City Commission /RDA's consideration and approval (the New Submerged Land Lease). The New Submerged Land Lease is also for a term of twenty five (25) years. The substantive terms and conditions are the same as the Existing Lease, with the exception of the following: 1. The square footage for the leased area has been revised to accurately reflect the actual square footage of the submerged land area —from 1,648,911, to 1,648,937 (an addtl. 26 sq. ft.). 2. The actual current number of boat slips -416 (368 slips and 48 transient slips) —is now referenced. 3. The section of the Lease pertaining to "Use of (the) Property" has been clarified to reflect current uses, and now specifically includes liveaboards (which the Lease continues to define as any vessel docked at the facility and inhabited by a person or persons for any five(5) consecutive days or a total of ten(10) days within a thirty (30) day period, but not to exceed six(6) months within any twelve (12) month period, nor allowing the use of any vessel for a legal or primary residence). 4. Commencing with the first year of the New Lease term, the annual rent payable to the State is estimated to be between $176,000 - $178,000 (Note: The reason for the approximation is due to the fact that the State's CPI index is not available /released until late December /early January). The annual rent for FY 09/10 was $172,509.32, representing an increase between last year and the first New Lease Year's estimated rent of approximately 1.9 % - -3.1 %. 5. Language which was previously added through a 2005 Amendment to the Existing Lease, which permitted an exception to the lease prohibition on gambling vessels to allow a previously existing sub -lease between the Marina Lessee and Majesty Enterprise of Florida, LLC for a gambling cruise ship, has been deleted in its entirety. The New Lease now prohibits ANY operation of or entry onto the leased premises of gambling cruise ships or vessels that.are used principally for the purpose of gambling. 6. The New Lease also references. Miami Beach Marina Associates, Ltd. as the current Marina Lessee. In addition to the above, which denote changes from language in the Existing Lease, the State has also added the following additional section, containing, "Special Lease Conditions," as follows: 1. Providing that ninety percent (90 %) of all wet slips must be made available for rental to the general public on a "first come, first served" basis, with no longer than one -year rental terms and with no automatic renewal rights or conditions. 2. Allowing the State certain rights with respect to review and modification of tease terms , and conditions, including Lease fees, for purposes including but not limited to (i) conformity to adoption or revisions to Florida law; (ii) to ensure compliance with U.S. Endangered. Species Act of 1973 and the Florida Endangered and Threatened Species Act of 1977; (iii) to conform to adoption or revision of rules regarding the assessment of Lease fees; (iv) to conform to any modifications to any permits issued by - DEP, the applicable water management district, and /or the Army Corp of Engineers; and (v) to remove any structure declared to be a public nuisance. 3. Reserving its rights to adjust the.rent. 4. Extending the City's obligation, should the State so request during the Lease term, to remove certain pilings currently situated on the area referred to as "Pelican Island" (which was deeded to the State in 1990), in the event that the State determines that such pilings have deteriorated to the point where it deems they're a hazard to public safety or navigation (Note: As stated this obligation also existed under the Existing Lease, and is carried over here). 2 We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community. 5. Requiring authorization by the State, in the event the City /RDA (as Lessee) seeks to rebuild or restore any "non -water dependent structures" included in the Lease (which, at this time, only includes the dockmaster facility). CONCLUSION The City /RDA Administration and City Attorney's Office have reviewed the proposed New Submerged: Land Lease, as submitted by the State, and would recommend that the Mayor and City Commission (and Chairperson and Members of the RDA) hereby approve and authorize the Mayor and City Clerk (and Chairperson and Secretary) to execute same. As initially set forth in .this Memorandum, the City /RDA is ,contractually obligated under the Marina Lease to -maintain a current submerged land lease with the State in full force and effect. F: \atto\AGUR \RESOS -ORD \MEMOS \Marina Submerged Land Lease (11- 4- 10).doc 3 We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community.