LTC 293-2013 Status Regarding Log Cabin Nursery Tenancy LD MIAMI BEACH F y , -�
OFFICE OF THE CITY MANAGER 2013 AUG 26 PM 3: 20
No. aq3 -a013
LE ER TO CO�MMISSIONI� 3C
TO: Mayor Matti H. Bower and Member of the City C mmission
FROM: Jimmy L. Morales, City Manager
DATE: August 24, 2013
SUBJECT: Status Regarding Log Cabin rsery Tenancy
The purpose of this Letter to the Commission (LTC) is to inform the Mayor and City Commission
of the status of the tenancy of the Log Cabin Training Center, operated on City -owned land by
Sunrise Community, Inc., at 8108 -8140 Collins Avenue, Miami Beach, FL 33139 (Leased
Premises). The original Lease Agreement commenced on August 1, 2006 for an initial three year.
term with two additional options for three years each, at the sole discretion of the City Manager.
The first option was exercised in 2009 and expired on July 31, 2012. When the tenant requested
to exercise the second option, a default condition existed but was then remedied. The
Administration thereafter processed the approval of the renewal option for the final available term,
for the period from August 1, 2012 through July 31, 2015.
On July 29, 2013, Staff met with the representative of the Log Cabin, Leslie W. Leech, Jr. and a
representative from Miami Achievement Center for the Developmentally Disabled (MACTOWN),
Clint Bower. The purpose was to advise staff that the Log Cabin operations was losing money, to
the extent of $140,000.00 per year and would need an early termination of the Lease or, in the
alternative, an assignment of the Lease to MACTOWN, which enterprise had a better ability to
fund. the program through other ongoing programs and services which it currently serviced.
Tenant was advised by Staff that an assignment of the Lease was not allowed under the terms
and that the issue had to be brought to the attention of the Neighborhoods Committee for a
decision.
On August 21, 2013, Tenant began moving its operations from the Log Cabin to other locations
within the control of Tenant and is slated to have completely closed its operations and moved all
personal property from the Leased Premises. Tenant's representative further confirmed that he
intended to continue to meet the monetary obligations of the Lease, would not be accepting the
CDBG Grant which they had been awarded for the fiscal year 2013 -2014 and would vacate the
leased Premises by September 5, 2013. '
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Staff will be meeting Tenant at the Leased Premises, once Tenant has completly vacated, for a j
final walk- through inspection and in order to secure possession and keys to the premises. Staff is
in the process of drafting a Waiver of Leasehold Interest, which will be reviewed and approved by J
the City Attorney's Office and which will be executed at the time of Final Walkthrough. In
addition, pursuant to the terms of the Lease, abandonment of the Leased Premises is a 'default
under the lease and Staff is also in the process of sending a Default Notice, in order to document
the default under the Lease.
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Staff has already referred this matter to the next Neighborhoods Committee meeting, currently
scheduled for September 30, 2013.
PleapA feel free to contact me with any questions.
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F:IRHCDI$A C IWALLIASSETILog CabinlLog Cabin Enterprises - LTC (8- 22- 2013).docx