2012-28039 Reso RESOLUTION NOj 2012 -28039
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 LEASE AGREEMENT WITH
DESIGN MIAMI TO HOLD THE DESIGN MIAMI SHOW IN THE PREFERRED
PARKING LOT, FOR SPECIFIC DATES IN 2013, 2014, 2015, AND 2016; AS
MORE SPECIFICALLY SET FORTH IN THE LEASE AGREEMENT
ATTACHED AS EXHIBIT "A" TO THIS RESOLUTION.
WHEREAS, on May 12, 2010, the City Commission adopted Resolution No. 2010 -27384
approving a Lease Agreement between the City and Design Miami to hold the Design Miami
Show in the Preferred Parking Lot (P -Lot) in 2010, 2011 and 2012; and
WHEREAS, Design Miami is currently in the final year (third year) of its Lease
Agreement with the City, which expires December 31, 2012, and Design Miami has approached
the City about entering into a new Lease; and
WHEREAS, Design Miami wishes to again lease the Preferred Parking Lot, located
between Convention Center Drive and Meridian Avenue, and 18 and 19 streets, for the
purpose of continuing to provide the Design Miami show for specific dates in December 2013,
2014, 2015, and 2016, respectively, in conjunction with Art Basel Miami Beach; and
WHEREAS, the Preferred Parking Lot was identified as the most compatible space, as it
provides for synergy between Design Miami and Art Basel Miami Beach; and
WHEREAS, the additional parking at the City Hall Garage, and the Pennsylvania
Avenue Garage, provides alternative parking for the spaces displaced by Design Miami; and
WHEREAS, at its meeting on July 30, 2012, the Neighborhood /Community Affairs
Committee recommended that the Administration negotiate a new Lease with Design Miami,
and
WHEREAS, the Administration and Design Miami have negotiated the attached Lease
Agreement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission hereby approve and
authorize the Mayor and City Clerk to execute a Lease Agreement with Design Miami to hold
the Design Miami Show in the Preferred Parking Lot, for specific dates in December, 2013,
2014, 2015, and 2016; as more specifically set forth the Lease Agreement attached as Exhibit
"A" to this Resolution. 1
PASSED AND ADOPTED this day of DG1�DI Q►� , 2012
. 1 Jorge R. Exposito
=' I Vice -Mayo
ATTEST: %_ .'� i APPROVED AS TO
` : ORATED: FORM & LANGUAGE
& FOR EXECUTION
CITY CLERK
KGB /MAS ttorney ate
T:\AGENDA\2012 \10- 24 -12 \DM P LOT LEASE Reso.doc
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving a Lease Agreement with Design Miami to hold the Design Miami Show in the
Preferred Parking Lot, for specific dates in 2013, 2014, 2015, and 2016; as more specifically set forth the
Lease Agreement attached as Exhibit "A" to this resolution.
Key Intended Outcome Supported:
Maximize Miami Beach as a Destination Brand
Supporting Data (Surveys, Environmental Scan, etc.): The 2012 Customer Satisfaction Survey
indicated that most residents of Miami Beach (70 %) believed that tourism adds to the quality of life in
Miami Beach. This figure was virtually the same in 2009 (69 %), yet much higher in 2005 (82 %). Residents
of Condo Corridor, Mid Beach and South Pointe were slightly more likely to say that tourism detracts from
the quality of life in Miami Beach.
Issue:
Whether to approve a parking agreement lease with Design Miami for the Preferred Parking Lot and
related services forspecific dates in 2013, 2014, 2015 and 2016?
Item Summa /Recommendation:
Design Miami is a marketplace for limited- edition design from the most reputable international design
galleries who present curated exhibitions of museum - quality furniture, lighting and objects d'art. They
attract the highest level of private and public collectors of historical and contemporary design; much like Art
Basel Miami Beach does with modern and contemporary works of art.
On May 12, 2010, the City Commission adopted Resolution No. 2010 -27384 approving a Lease Agreement
between the City and Design Miami to hold the December Design Miami Show in the Preferred Parking Lot
(P -Lot) in 2010, 2011 and 2012. The P -Lot provides Design Miami with sufficient space to construct a
temporary exhibition structure to host the show. The Preferred Parking Lot was identified as the most
compatible space, as it was agreed by all parties that it provides,for opportunities for synergy between
Design Miami and Art Basel Miami Beach. The parking at the new City Hall garage, the Pennsylvania
Avenue Garage and 17 Street Garage provides alternative parking for the spaces (approximately 220)
displaced by Design Miami.
Design Miami is currently in the final year (third year) of their Lease Agreementwith the City, which expires
December 31, 2012. Design Miami has approached the City about renewing the lease, but the current
Agreement does not have a renewal provision.
The rental rate for the Premises is $84,375 in each year of the lease, including applicable sales tax, per
year. This rate was based on a "per space" flat rate of $15.00, calculated by a turnover rate per day, and
multiplied by the number of days the spaces could have been used, depending on Exhibit Hall use during
the rental period. The first lease agreement between the City and Design Miami included a rental structure
that was phased in over three years before reaching the optimal turnover rate per space of 1.5 times.
Since the optimal turnover rate per space of 1.5 times has already been reached, this new lease
agreement negotiated does not include a rental rate increase during the term of the lease. This is similar to
the parking lease agreement the City has with National Marine Manufacturers Association (NMMA) for the
Boat Show.
Advisory Board Recommendation:
Neighborhoods /Community Affairs Committee of July 30, 2012 recommended the Administration
negotiate a new agreement with Design Miami.
Financial Information:
Source of Amount Account Approved
Funds:
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Max Sklar, Acting Assistant City Manager
Si n -Offs:
Departmen h r ctor A istant I ! a i l nager Manager
11 1 l MAS SF MAS
T A\2 12 \10- 24 -12 \DM P LOT LEASE SUMM.doc .
K 1 ,4G�EhJ' ®A ITEM . C 7 .
, �, DATE. /fI'all
i
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower and Members of the City Commission
FROM:' Kathie G. Brooks, City Manager
DATE: October 24, 2012
SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROVING A LEASE AGREEMENT WITH DESIGN MIAMI TO HOLD THE DESIGN
MIAMI SHOW IN THE PREFERRED PARKING LOT, FOR SPECIFIC DATES IN 2013, 2014,
2015, AND 2016; AS MORE SPECIFICALLY SET FORTH THE LEASE AGREEMENT
ATTACHED AS EXHIBIT "A" TO THIS RESOLUTION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
On May 12, 2010; the City Commission adopted Resolution No. 2010 -27384 approving a Lease Agreement
between the City and Design Miami to hold the December Design Miami Show in the Preferred Parking Lot
(P -Lot) in 2010, 2011 and 2012. The P -Lot provides Design Miami with sufficient space to construct a
temporary exhibition structure to host the show. The Preferred Parking Lot was identified as the most
compatible space, as it was agreed by all parties that it provides for opportunities for synergy between
Design Miami and Art Basel Miami Beach. The parking at the new City Hall garage, the Pennsylvania
Avenue Garage and 17 Street Garage provides alternative parking for the spaces (approximately 220)
displaced by Design Miami.
Design Miami is currently in the final year (third year) of their Lease Agreement with the City, which expires
December 31, 2012. Design Miami has approached the City about renewing the lease, but the current
Agreement does not have a renewal provision.
The Neighborhoods /Community Affairs Committee met on July 30, 2012 and recommended the
Administration negotiate a new agreement with Design Miami.
ABOUT DESIGN MIAMI
Design Miami is a marketplace for limited- edition design from the most reputable international design
galleries who present curated exhibitions of museum - quality furniture, lighting, and objects d'art. It attracts
the highest level of private and public collectors of historical and contemporary design, much like Art Basel
Miami Beach does with I modern and contemporary works of art. Participating galleries deal mainly in
exceptional design objects from the advent of Modernism (circa 1900) to present day, with select galleries
specializing in 18 and 19 century antiques.
Design Miami produces two shows each year: Design Miami /Basel in June, and Design Miami in December.
The December show has been produced in the Design District since 2005, and the June show in Basel
since 2006. Craig Robins is a principal of the fairs, which are organized in partnership with MCH Swiss
Exhibition, the producers of Art Basel and Art Basel Miami Beach.
Design Miami Parking Lease Agreement
City Commission Meeting
October 24, 2012
Page 2 of 4
PROPOSED LEASE TERMS
The proposed Lease Agreement with Design Miami for use of the Preferred Parking Lot has the following
terms:
Term:
Four (4) years ending on December 31, 2016.
2013
October 21 — December 2 Move -in
December 3 — December 8 Show Days
December 9 — December 26 Move -out
*2014 tentative dates are:
October 20 — December 1 Move -in
December 2 — December 7 Show Days
December 8 — December 25 Move -out
*Lessee shall give written notice to Lessor on or before February 1, 2014 of any change
to the dates; otherwise, the tentative dates set forth above shall be presumed to be the
final dates and shall be binding on Lessee.
*2015 tentative dates are:
October 19 - November 30 Move -in
December 1 — December 6 Show Days
December 7 — December 24 Move -out
* *Lessee shall give written notice to Lessor on or before February 1, 2015 of any change
to the dates; otherwise, the tentative dates set forth above shall be presumed to be the
final dates and shall be binding Lessee.
*2016 tentative dates are:
October _ — November _ Move -in
December — December Show Days
December — December Move -out
* *Lessee shall give written notice to Lessor on or before February 1, 2016 of any change
to the dates; otherwise, the tentative dates set forth above shall be presumed to be the
final dates and shall be binding on Lessee.
Rental Rate:
The rental rate for the Premises is $84,375 in each year of the lease, including applicable sales tax, per
year. This rate was based on a "per space" flat rate of $15.00, calculated by a turnover rate per day, and
multiplied by the number of days the spaces could have been used, depending on Exhibit Hall use during
the rental period. The first lease agreement between the City and Design Miami included a rental structure
that was phased in over three years before reaching the optimal turnover rate per space of 1.5 times. Since
the optimal turnover rate per space of 1.5 times has already been reached, this new lease agreement
negotiated does not include a rental rate increase during the term of the lease.
This is similar to the parking lease agreement the City has with National Marine Manufacturers Association
(NMMA) for the Boat Show. Use of additional space(s) must be mutually agreed upon by both parties and
rental rates for any agreed upon additional space(s) is determined by the formula outlined below. The
following is an itemized listing of the rental fees per year:
Design Miami Parking Lease Agreement
City Commission Meeting
October 24, 2012
Page 3 of 4
Rental 2013
Event parking rate of $22.5p /day (1.5% turnover) per day during Events
and 1/4 of lot used.
Rental Rate
# of Event Days p /space p /day # of spaces Total
15 $22.50 250 $ 84,375
Rental 2014
Event parking rate of $22.5p /day (1.5% turnover) per day during Events'
and 1/4 of lot used.
# of Event Days Rental Rate # of spaces Total
p /space p /day
15 $22.50 250 $ 84,375
Rental 2015
Event parking rate of $22.5p /day (1.5% turnover) per day during Events
and 1/4 of lot used.
Rental Rate
# of Event Days p /space p /day # of spaces Total
15 $22.50 250 $ 84,375
Rental 2016
Event parking rate of $22.5p /day (1.5% turnover) per day during Events
and 1/4 of lot used.
Rental Rate
# of Event Days p /space p /day # of spaces Total
15 $22.50 250 $ 84,375
At no time during the Term of the lease will Design Miami be permitted to use more than 300 parking spaces
in the Preferred Parking Lot, unless mutually agreed upon.
Protection Clause:
The Lease includes a clause prohibiting the City from leasing the Preferred Parking Lot to third parties for
any furniture design show, for thirty (30) days immediately prior to, and the thirty (30) days after the Design
Miami dates.
Convention Center Expansion:
It is important to note that in light of the ' discussions regarding the Miami Beach Convention Center
expansion, the Agreement includes language providing for a six (6) months notice to Design Miami prior to
any construction /capital improvements to the Preferred Parking Lot and /or its vicinity. The City will use best
efforts to notice Design Miami with a one (1) year notice.
Default and Termination:
The City may default Design Miami if any of the following occur:
a. If Design Miami abandons or vacates the Premises during any of the dates provided for its
use of the Premises hereunder, other than as consistent with moving in or out;
b. If Design Miami fails to timely pay any of the rental amounts, as set forth in this Agreement;
C. If Design Miami fails to discharge or bond off any lien filed on the Premises, within ten (10)
Design Miami Parking Lease Agreement
City Commission Meeting
October 24, 2012
Page 4 of 4
days of written notice from City to Design Miami; or
d. If Design Miami fails to perform in accordance with any of the other terms and conditions
herein contained and such default is not cured within ten (10) days after written notice.
Public Benefits:
Design Miami has also provided residents of the City with a fifteen percent (15 %) discount on the purchase
of individual day passes.
CONCLUSION
The Administration recommends adopting the attached Resolution which approves substantive terms of a
Parking Lease Agreement between the City and'Design Miami for use of the Preferred Parking Lot for the
Design Miami fair.
KGB /MAS
T:\AGENDA\2012 \10- 24 -12 \DM P LOT LEASE MEMO 2012.doc
PREFERRED PARKING LOT
LEASE AGREEMENT FOR "DESIGN MIAMI" SHOW
This Lease Agreement (the Lease) made this day of , 2012
(Effective Date),. by and between the CITY OF MIAMI BEACH, a Florida Municipal
Corporation (City or Lessor), whose address is 1700 Convention Center Drive, Miami
Beach, Florida 33139, and DESIGN MIAMI II, LLC, a Florida limited liability company
whose address is 3841 NE 2nd Avenue, Suite 400, Miami, Florida 33137 (Lessee).
WHEREAS, Lessee wishes to lease the Preferred Parking Lot, located between
Convention Center Drive and Meridian Avenue, and 18 and 19 streets, for the purpose of
producing the "Design Miami" show in conjunction with the Art Basel Miami Beach show at
the Miami Beach Convention Center (MBCC); and
WHEREAS, the Preferred Parking Lot was identified 'as the most compatible space,
as it provides for synergy between Lessee's event and Art Basel Miami Beach; and
WHEREAS, Lessee seeks to lease the Preferred Parking Lot for the aforestated
�+ d \ event from October 21 — December 26, 2013, as well as for similar dates in 2014, and -2015
and 2016 and
WHEREAS, the Lessor and Lessee negotiated a agreement Torn. ! She e t (E
which was approved by the City Commission on DATE (via Resolution No.
# h ; ingly, the paFties have negotiated the f9re9GiR9 Lease based on t
NOW, THEREFORE, in consideration of the mutual covenants herein exchanged,
the parties agree as follows:
1) Premises Lessee shall have the right to use the following City property for
the purpose of producing and holding the Design Miami show (the Event), which use shall
include exhibit space; passenger loading zones; space for valet ramping for City's
contracted valet operator; and additional storage:
The leased premises shall consist of an area equal to approximately 250 spaces
in the City's Preferred Parking Lot, located between Convention Center Drive and
Meridian Avenue, and 18th Street and 19th Streets, Miami Beach, Florida,
(hereinafter, the Premises). The Premises are further delineated in the sketch
attached as Exhibit "B" hereto.
Subject to the prior written consent of the City Manager, which consent shall not be
unreasonably withheld, Lessee may also be permitted to use additional space in the
Preferred Parking Lot, at rental rates to be determined by Lessor, based on the formula in
Section 2 hereof. If approved, any such additional space shall be deemed incorporated into
and be a part of the Premises, and shall also be subject to all of the terms and conditions of
the. Lease.
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2) Term
2013
October 21 — December 2 Move -in
December 3 — December 8 Show Days
December 9 — December 26 Move -out
*2014 tentative dates are:
October 20 — December 1 Move -in
December 2 — December 7 Show Days
December 8 — December 25 Move -out
*Lessee shall give written notice to Lessor on or before February 1, 2014 of
any change to the dates; otherwise, the tentative dates set forth above shall
be presumed to be the final dates and shall be binding on Lessee.
* *2015 tentative dates are:
October 19 — November 30 Move -in
December 1 — December 6 Show Days
December 7 — December 24 Move -out
* *Lessee shall give written notice to Lessor on or before February 1, 2015 of.
any change to the dates; otherwise, the tentative dates set forth above shall
be presumed to be the final dates and shall be binding on Lessee.
* *2016 tentative dates are:
October 17 — November 28 Move -in
November 29— December 4 Show Days
December 5 December 22 Move -out
* *Lessee shall give written notice to Lessor on or before February 1, 2016 of
any change to the dates; otherwise, the tentative dates set forth above shall
be presumed to be the final dates and shall be binding on Lessee.
Following !he first Event yeaF (2010), and On the eVeRt
t�ia};,Taf� the I �-e. Lessee mays#a" the City written notice, within -_s x f (180) days
from the last move -out date for any year's event. December 23, 2 of its desire to
terminate the Lease. In consideration for being permitted to terminate the Lease in
accordance with this paragraph, the City shall retain twenty -five percent (25 %) of the annual
rental fee for the next succeeding show as Liquidated Damages.
GOMMPRGing upon the EffeGtive Date of th is Lease, Lessee shall be peFFnitted aRiRety (90�
day " " urther researnh aSSOGiated nne�tS to nrnre ho Event on the
' Qq��j /Cpipl - p -pGT ♦'1n O �IfG L1IG��l Vl� 111V
Lease PFemuses. l R the event that Lessee determines dwing the expleFatGFy period to not PreGe
with the Event on the Premises, it may teFmiRate this 1 and Without
liability 11nnn W nntine to the rite; provided however that 6UGh nntiGe to termin
be reGeived by the Gity duFiRg the ekp'Watery peFied. If Lessee- does not notify the Gity
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w i th i n the n (90) day exploratory pepiod of its desire te teFFninate the Lease ,
all terms and nond of the Agreement will remain in fell forge and effeGt
3) Use Lessee shall have the right to use the Premises for the Event, which is
a furniture design show for galleries which present curated exhibitions of museum - quality
furniture, lighting, and objects. d'art. Lessee's proposed use(s) of the Premises for the
Event shall permit exhibit space; passenger loading zones; space for valet ramping for the
City's contracted valet operator; and additional storage.
Lessee shall be permitted to install fencing at the perimeter of the Premises, subject to
complying with all City and Miami -Dade County requirements, including, without limitation,
permitting requirements. Lessee shall also be permitted to install tents and other equipment
necessary for the Event, subject to complying with all City and Miami -Dade County
requirements including, without limitation, permitting requirements. All installations and
improvements shall be further subject to current applicable building codes, and shall comply
with all applicable City, County, State and Federal Laws.
City shall provide, and Lessee hereby accepts, the Premises in their "AS IS," "WHERE IS"
condition. At the end of each of the Event dates, as set forth in the Term in Section 2
hereof, Lessee shall return the Premises to their original condition prior to the first move -in
date of the Event; including, without limitation, restoring all asphalt and other surfaces to
their original (or better) condition.
Lessee shall be solely responsible for obtaining and paying for any and all permits and
licenses as required and necessary for its use of, and operations on, the Premises.
4) Rental. Lessee agrees to pay the following rental rates (including applicable
sales tax) for each Event year during the Term, as follows:
Rental 2013
Event parking rate of $22.50 (1.5% turnover) per day during
Events and 1/4 of lot used.
of Event Days Rental Rate ft of spaces Total
p /space p /day
- 15 $22.50 250 $ 84,375
Rental 2014
Event parking rate of $22.50 (1.5% turnover) per day during
Events and 1/4 of lot used.
ft of Event Days Rental Rate ftofspaces Total
p /space p /day
15 $22.50 250 $ 84,375
Rental 2015
Event parking rate of $22.50 (1.5% turnover) per day during
Events and 1/4 of lot used
3
ft of Event Days Rental Rate #ofspaces Total
p /space p /day
15 $22.50 250 $ 84,375
Rental 2016
Event parking rate of $22.50 (1.5% turnover) per day during
Events and 1/4 of lot used
ft of Event Days Rental Rate ft of spaces Total
p /space p /day
15 $22.50 250 $ 84,375
Rental payment -for 2013 will be made as follows:
• 50% on or before October 21, 2013; and
• balance (50 %) on or before December 3, 2010.
Rental payment for 2014 will be made as follows:
• 50% on or before October 20, 2014; and
• balance (50 %) on or before December 2, 2014.
Rental payment for 2015 will be made as follows:
• 50% on or before October 19, 2015; and
• balance (50 %) on or before December 1, 2015.
Rental payment for 2016 will be made as follows:
• 50% on or before October 17, 2016; and
• balance (50 %) on or before November 29, 2016
The total rental amounts set forth above are final, are subject to amendment only on
account of (a) Lessee leasing additional parking spaces, in which event the rental therefor
shall be adjusted only to adjust the V of spaces" in the above formula, or (b) amendment by
the City Commission as provided below in this section, and are not subject to re-
computation or other adjustment under any other circumstances.
In addition to the aforestated rental payments, if the City Commission amends the parking
rates, Lessor, at its sole option and discretion, may increase the aforestated Rental Rates, -
but not to exceed 10% in any given year of the Term.
Lessee shall also be solely responsible for the payment of any and all taxes and /or
assessments including, without limitation real estate taxes, which may be levied against the
Premises as a result of Lessee's actions and operations thereon.,
Rent shall be paid to the City of Miami Beach Parking Department, 1755 Meridian Avenue,
Suite 200, Miami Beach, FL, 33139.
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5) Protection Clause In consideration for Lessee's agreement to hold the
Event on the Premises, the City agrees that, for the Term of this Agreement, it will not lease
the Preferred Parking Lot to third parties for the purpose of holding a furniture design show,
for the thirty (30) days immediately prior to, and the thirty (30) days immediately after, the
Event dates (for each year of the Term). The Protection Clause would not, however,
prohibit or preclude the City and /or the City's manager at the Convention Center, from
allowing the use of the Preferred Parking Lot for load -in, staging, and load -out of a
Convention Center show /event which is either a furniture design show, or has a furniture
design component.
6) Responsibility for Clean -Up of Public Areas Lessee shall be solely
responsible for the necessary housekeeping services to properly maintain the Premises in a
neat and orderly manner. Lessee shall maintain the order and cleanliness of the Premises
on a daily basis, and shall be responsible for the removal of trash, rubbish, and garbage. If
required by the City, Lessee shall provide, at its own expense, trash receptacles throughout
the Premises in an amount sufficient to maintain the cleanliness of the area. Lessee shall
also instruct and monitor its employees and.contractors to assure that trash, rubbish, and
garbage are immediately picked up on the Premises.
7) Services to be Provided by the City's Parking Department. The City's
Parking Department shall remove all signs on the Premises prior to the first move -in date for
each year of the Event.
8) Lessor's Proposed Improvements In the event that the City, in its sole
and reasonable discretion and judgment, deems that it is necessary to close all, or a any
portion of, the Premises due to a capital improvements project, including, without limitation,
expansion of the Miami Beach Convention Center and /or related facilities, then the City
shall provide Lessee with written notice of same no later than six (6) months prior to
Lessee's first move -in date of the particular Event year. Following such notice, the parties'
hereby agree and acknowledge that the Lease and the parties' respective obligations
hereunder, shall be automatically terminated, without liability to either. party. Lessee
acknowledges and agrees that it shall not have any claim, demand, or cause of action of
whatever kind or nature, against the City, its officials, employees, agents, and /or
contractors, including, without limitation, claims for interference in business or damages for
business interruption, due to such closure. If possible, the City will use reasonable efforts to
provide Lessee with one (1) year notice.
9) Indemnification. Lessee shall indemnify, defend and hold the City its
officers, employees, contractors, and agents, harmless from and against any and all claims
or causes of action (whether groundless or otherwise) by or on behalf of any persons, firm
or corporation, for personal injury, property damage, or other occurring upon the Premises
occasioned in whole or in part by any of the following:
a. an act of omission on the part of Lessee or any officer, employee,
contractor, agent, invitee, guest, or assignee of Lessee;
b. any misuse, neglect, or unlawful use of the Premises by Lessee or any
officer, employee, contractor, agent, guest, invitee, or assignee of
Lessee; and /or
C. any breach, violation, or nonperformance of any undertaking by
Lessee under this Lease.
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Lessee agrees to pay, and shall pay, for all damage to the Premises caused by Lessee or
any employee, contractor, agent, guest, invitee, or assignee of Lessee.
10) Insurance. The Lease shall not' be effective, nor shall Lessee take
possession of the . Premises, until all insurance required under this section has been
obtained and such insurance has been approved by City's Risk Manager. Lessee shall
maintain and carry in full force during the Term of this Lease the following insurance:
i. General Liability, in the amount of $1,000,000.00. A certified copy of Lessee's
Insurance Policy must be filed and approved by the Risk Manager prior to
commencement. The CITY OF MIAMI BEACH, FLORIDA must be named as an
Additional Insured. .
2. Workers' Compensation & Employers Liability, as required pursuant to Florida
Statutes. A certified copy of Lessee's Insurance Policy must be filed and approved
by the Risk Manager prior to commencement
3. Automobile Insurance, in the amount of $1,000,000.00. A certified copy of
Lessee's Insurance Policy must be filed and approved by the Risk Manager prior
to commencement. The CITY OF MIAMI BEACH, FLORIDA must be named as,
an Additional Insured.
4. All -Risks Property and Casualty Insurance, written at a minimum of 80% of
replacement cost value and with replacement cost endorsement, covering the non -
permanent structures and floor coverings owned by Lessee.
s. Liquor Legal Liability Insurance, with policy limits of $2,000,000 per occurrence,
naming the CITY OF MIAMI BEACH, FLORIDA, as an additional insured, either as
an endorsement to Lessee's General Liability policy or as a separate policy.
Lessee shall provide the City with evidence of this insurance prior to selling or
serving alcoholic beverages at or from the Premises. If Lessee fails to obtain or to
continue this coverage, Lessee shall immediately discontinue selling and serving
alcoholic beverages from the Premises. Lessee may also satisfy this requirement
by ensuring that a third party selling and serving such beverages maintains such
insurance.
All insurance policies must be issued by companies authorized to do business under the
laws of the State of Florida. The companies must be rated no less than "B +" as to
management and not less than "Class VI" as to strength by the latest edition of Best's
Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent.
11) Default and Termination. The following actions (a) through (d) shall
constitute an event of default by Lessee:
a. If Lessee abandons or vacates the Premises during any of the dates provided
for its use of the Premises hereunder, other than as consistent with moving in
or out;
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b. If Lessee fails to timely pay any of the rental, or other amounts, set forth in this
Lease;
C. If Lessee fails to discharge or bond off any lien filed on the Premises, within
five (5) days of written notice from Lessor; or
d. If Lessee fails to perform in accordance with any of the other terms and
conditions herein contained and such default is not cured within three (3) days
after written notice from Lessor; or
e. If Lessee fails to comply with the insurance requirements in Section 10 hereof
and such default is not cured within twenty -four (24) hours of verbal or written
notice from the City.
In the event of default by Lessee, and where such default is not cured within the applicable
period, the City may terminate this Agreement without further notice to Lessee. Lessee
shall immediately surrender possession of the Premises, as well as removing any personal
property and equipment therefrom. Any personal property and equipment not so removed
shall be removed and stored at Lessee's expense.
Additionally, in the event of a termination hereunder, the City may also pursue any and all
remedies, whether at law or equity, available to seek redress for such default.
12). Bankruptcy and Insolvency. If Lessee is adjudicated bankrupt or makes an
assignment for the benefits of creditors, the City shall have the right to immediately
terminate this Agreement and re -enter the Premises without notice or demand.
13) Sublease and Assignment. Lessee shall not sublease the Premises or any
part thereof, nor assign this Lease, without obtaining the City Manager's prior written
approval, which approval may be given, if at all, at his /her sole and absolute discretion.
Nothing herein shall prohibit Lessee being permitted to contract with exhibitors, sponsors
and concessions for the Event.
14) Permits and Licenses. Lessee shall be solely responsible for obtaining and
paying for any and all permits and licenses necessary for its use of and operations on the
Premises. Lessee must obtain a City Special Event Permit, which includes building,
structural, electrical permits. Issuance of such Special Event Permit shall be subject to and
contingent upon Lessee meeting all the requirements and conditions of the City's
administrative rules and guidelines for special events, as same may be amended from time
to time.
15) City's Right of Entry. The City,. or its authorized agent or agents, shall have
the right, but not the obligation, to enter upon all or any part of the Premises at all
reasonable times for the purpose of inspecting same, preventing waste, making such
repairs as the City may consider necessary, and for the purpose of preventing fire, and /or
addressing other life safety issues. However, the City agrees that, whenever reasonably
possible, the City shall provide notice to Lessee, unless the need to enter the Premises is
an emergency, as deemed by the City, at its sole discretion, which if not immediately
addressed could cause property damage, loss of life or limb, or other injury to persons.
Nothing herein shall imply any duty on the part of the City to do any work that under any
provisions of this Agreement Lessee may be required to perform, and the performance
thereof by the City shall not constitute a waiver of the Lessee's default.
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16) Security Deposit. Following execution of this Lease by the parties hereto,
and in no event later than sixty (60) days prior to the first move -in date of the first year of the
Event, Lessee shall pay to City the sum of Five Thousand Dollars ($5,000), as security for
the faithful performance by Lessee of the terms, conditions and covenants of this Lease. In
the event of Lessee's default of a term, condition and /or covenant of this Lease, the City
.shall be entitled to retain such Security Deposit. In the event that Lessee shall fully comply
with all of the terms, conditions, and covenants of this Lease, the Security Deposit shall be
returned to Lessee, without interest, at the end of the Term.
17) Sponsorship. The City of Miami Beach will be recognized as a sponsor of
the Event. As such, the City will receive recognition (logo in catalogue, logo in Miami
website/ with link to the. City website). In addition, the City will receive recognition in the
Design Miami /Basel catalogue.
18) Complimentary City Tickets. Lessee agrees to provide the City with a
minimum of ten (10) complimentary VIP passes and an additional twenty -five (25)
complimentary day passes for each year of the Event.
19) Resident Tickets. Lessee shall provide City residents with at least a fifteen
percent (15 %) discount on individual day passes. The City will provide Lessee with avenues
to promote the offer (i.e. City website and newsletters).
20) Mutual Acknowledgement. Both parties acknowledge that use of the
Preferred Parking Lot reduces parking inventory and the availability of public parking for
attendees of the fair.
21) Notices. All notices shall be sent to the parties at the following addresses:
Lessor: City of Miami Beach
City Manager's Office
1700 Convention Center Drive
Miami Beach, FL 33139
Attn: City Manager
City of Miami Beach
Parking Department
1755 Meridian Avenue, Suite 200
Miami Beach, FL 33139
Attn: Director
Tourism and Cultural Development Department
1755 Meridian Avenue, Suite 500
Miami Beach, FL 33139
Attn: Director
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Lessee: Design Miami II, LLC
3841 NE 2 nd Avenue
Suite 400
Miami, FL 33137
Attention: Craig Robins
With copies to: Design Miami ll, LLC
3841 NE 2 nd Avenue
Suite 400
Miami, FL 33137
Attention: Anna Williams
and to: Design Miami ll, LLC
3841 NE 2 "d Avenue
Suite 400
Miami, FL 33137
Attention: Ty Bassett
Lessee and Lessor may change such address at any time upon giving the other party
written notification. All notices under this Lease must be in writing and shall be deemed to
be served when delivered to the address of the addressee. All notices served by mail shall
be registered mail, return receipt requested. Lessee may designate additional persons for
notification of default.
22) Force Maieure. No party will be liable or responsible to the other party for
any delay, damage, loss, failure, or inability to perform caused by "force majeure" if notice is
provided to the other party within ten (10) days of the date on which such party gains actual
knowledge of the event of "force majeure" that such party is unable to perform. The term
"force majeure ", as used in this subsection, means the following: an act of God, strike, war,
public rioting, terrorism, unusual tidal activity affecting the use of the Premises, fire,
hurricane, explosions, epidemics, earthquakes, floods, civil disturbances, and any other
cause which is not reasonably within the control of the party whose performance is to be
excused, and by which the exercise of due diligence could not be reasonably prevented or
overcome.
23) Waiver. No waiver by Lessor any time of any of the terms or conditions of
this Lease shall be deemed at any time thereafter a waiver of the same or any other term or
conditions hereof.
24) Severability. If any term or provision of this Lease or the application thereof
to any person or circumstance shall, to any extent, be invalid or unenforceable, the
reminder of this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable, shall not be
affected thereby and each term and provision of this Lease shall be valid and be
enforceable for the fullest extent permitted by law.
25) Governing LawNenue. This Lease shall be governed by and construed in
accordance with the law of the State of Florida. This Lease shall be enforceable in Miami-
Dade County, Florida, and if legal action is necessary by either party with respect to the
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enforcement of any or all of the terms or conditions herein exclusive venue for the
enforcement of same shall lie in Dade County, Florida. By entering into this Lease, Lessee
and Lessor expressly waive any rights either party may have to a trial by jury of any civil
litigation related to, or arising out of, this Lease.
26) Limitation of Liability. City desires to enter into this Lease only if in doing
so the City can place a limit on the City's liability for cause of action for money damages
due to an alleged breach by the City of this Lease, so that the liability for any such breach
never exceeds the sum of $10,000. Lessee hereby expresses its willingness to enter into
this Lease with Lessee's recovery from the City_ for any damage action for breach of
contract to be limited to a maximum amount of $10,000. Accordingly, and notwithstanding
any other term or condition of this Lease, Lessee hereby agrees that the City shall not be
liable to Lessee for damages in an amount in excess of $10,000, for any action of claim for
breach of contract arising out of the performance or nonperformance of any obligations
imposed upon the City by this Lease. Nothing contained in this paragraph or elsewhere in
this Lease is in any way intended to be a waiver of the limitation placed upon the City
liability as set forth in Florida Statutes, Section 768.28.
[ REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed by
their appropriate officials, as of the date first entered above.
ATTEST: LESSOR/CITY OF MIAMI BEACH
Rafael Grandado City Clerk Matti H. Bower, Mayor
LESSEE /DESIGN Miami
DESIGN MIAMI II, LLC, by Design Miami,
Inc., its managing member
WITNESS:
By: By:
Anna Williams
Print Name Vice President
By:
Print Name
FAinfo \$ALL \MaATCD \Special Events \LesseeP Lot Lease Agr.doc
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