2014-28811 Reso RESOLUTION NO. 2014-28811
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE; APPROVING AND
AUTHORIZING THE MAYOR AND CITY CLERK( TO EXECUTE AMENDMENT
NO. 1 TO THE CONCESSION AGREEMENT BETWEEN THE CITY AND JEWISH
COMMUNITY SERVICES OF SOUTH FLORIDA, INC. ("CONCESSIONAIRE"),
DATED JULY 15, 2009, FOR THE PREMISES LOCATED ON THE FIRST FLOOR
AT 833 6TH STREET, MIAMI BEACH, FLORIDA; SAID AMENDMENT
RENEWING THE CONCESSION AGREEMENT FOR THE SOLE REMAINING
RENEWAL TERM OF FIVE (5) YEARS, RETROACTIVELY COMMENCING
OCTOBER 1, 2014 AND ENDING SEPTEMBER 30, 2019; ADDING
PERFORMANCE BENCHMARKS TO THE CONCESSIONAIRE'S
REQUIREMENTS UNDER THE CONCESSION AGREEMENT; AND INCREASING
THE ADDITIONAL FEE FROM $1.92 PER SQUARE FOOT TO $2.20 PER
SQUARE FOOT, $2.49 PER SQUARE FOOT AND $2.77 PER SQUARE FOOT
FOR YEARS 1, 2 AND 3 OF THE RENEWAL PERIOD, RESPECTIVELY.
WHEREAS, on September 9, 2009, the Mayor and City Commission passed Resolution No.
2009-27186, approving lease agreements between the City and 1) Jewish Community Services of
South Florida, Inc. ("JCS"); 2) Little Havana Activities and Nutrition Centers of Dade County, Inc.;
3) Miami-Dade County; and 4) UNIDAD of Miami Beach, Inc.; all agreements being for the use of
South Shore Community Center, located at 833 6th Street, Miami Beach, Florida ("South Shore
Lease Agreements"); for an initial term of four years and three hundred sixty four days, all ending
on September 30, 2014, with an additional five year renewal term, at the City's sole discretion; and
WHEREAS, as part of the services being provided by the JCS under its lease agreements, on
July 15, 2009, the City and Jewish Community Services of South Florida, Inc. ("Concessionaire")
entered into a concession agreement ("Concession Agreement"), for the operation of a senior
meals program, utilizing, on a part-time basis, approximately 2,792 square feet of the auditorium
room at 833 6th Street, Miami Beach, Florida ("Demised Premises"), commencing on October 2,
2009 and ending on September 30 2014 with one additional five 5 year renewal term at the
City's sole discretion, which Concession Agreement ran concurrent with the term of the lease
agreement between the City and the JCS; and
WHEREAS, in considering exercising the sole five year renewal period for the South Shore
Lease Agreements and the Concession Agreement, the Administration noted that the base rent for
the South Shore Lease Agreements and Concession Agreement, were below market rental rates
and that only a portion of the operating expenses were being passed through to the tenants or
Concessionaire, and requested direction from the Finance and Citywide Projects Committee
(FCPC) at its May 20, 2014 meeting; and
WHEREAS, the FCPC considered this matter and recommended: 1) not to increase the Base
Rent of $1.20 annually, and 2) increase the operating expenses ("Additional Rent"), in accordance
with the total cost of the 2013 operating expenses (with the exception of the cost of insurance) to
the tenants under the South Shore Lease Agreements and Concessionaire; and
WHEREAS, in accordance with the South Shore Lease Agreements and the Concession
Agreement, the City provided timely notice to the tenants and Concessionaire, of the City's
intention to increase the Additional Rent; however, some tenants expressed objection to the
increase, citing financial constraints; and
WHEREAS, the Administration submitted the South Shore Community Center renewal issues
for reconsideration by the FCPC, at its September 24, 2014 meeting and subsequently at its
October 10, 2014 meeting, and the FCPC recommended: 1) to increase the Additional Rent,
incrementally during the initial three (3) years of the renewal term, and in particular, with respect to
the Concession Agreement, from $1.92 per square foot to $2.20 per square foot, for year 1; $2.49
per square foot for year two; and $2.77 per square foot for year three of the renewal period; and 2)
to incorporate performance benchmarks as a condition of the lease renewal; and
WHEREAS, in connection with the renewal of the lease between the City and the JCS, the City
and Concessionaire wish to renew the Concession Agreement, pursuant to Section 1.2 of the
Concession Agreement, coterminous with said lease agreement, for the sole remaining renewal
term of five (5) years, retroactively commencing October 1, 2014 and ending September 30, 2019,
pursuant to Amendment No. 1 to the Concession Agreement, including the recommendations of
the FCPC; and
WHEREAS, the Administration recommends that the City Commission adopt the
recommendations of the Finance and Citywide Projects Committee, from its September 24, 2014
and October 10, 2014 meetings, and approve Amendment No. 1 to the Concession Agreement,
substantially in the form attached hereto and incorporated herein as Exhibit 1".
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, hereby accept the recommendation of the Finance
and Citywide Projects Committee and approve and authorize the Mayor and City Clerk to execute
Amendment No. 1 to the Concession Agreement between the City and the Jewish Community
Services of South Florida, Inc. ("Concessionaire"), dated July 15, 2009, for the premises located on
the first floor at 833 6t" Street, Miami Beach, Florida; said Amendment renewing the Concession
Agreement for the sole remaining renewal term of five (5) years, retroactively commencing October
1, 2014, and ending September 30, 2019; adding performance benchmarks to the
Concessionaire's requirements under the Concession Agreement; and increasing the additional
rent from $1.92 per square foot to $2.20 per square foot, $2.49 per square foot and $2.77 per
square foot for years 1, 2 and 3 of the renewal term, respectively.
PASSED and ADOPTED this 4 day of aG Pr 2014.
ATTEST:
Rafael ra,n4do,,-' aty.%C Philip Le�.e" , Mayor
T:\AGE _A4O 4X beat butl Shore Community Center\Resos\South h e RESO JCS Concession(10-29-14).docx
APPROVED AS TO
%- �•`•. `° ••';'���; � FORM & LANGUAGE
&FOR EXECUTION
Date
City Attorney
AMENDMENT NO. 1 TO CONCESSION AGREEMENT
This Amendment No. 1 to Concession Agreement is entered into this day of
2014 by and between the CITY OF MIAMI BEACH, a Florida
municipal corporation, (hereinafter referred to as "City" or "Landlord"), and JEWISH
COMMUNITY SERVICES OF SOUTH FLORIDA, INC., a Florida not-for-profit
corporation (hereinafter referred to as "Concessionaire").
WITNESSETH:
WHEREAS, on September 9, 2009, the Mayor and City Commission passed
Resolution No. 2009-27186, approving a Concession Agreement between the City and
Jewish Community Services of South Florida, Inc. for the use of approximately 2,792
square feet of City-owned property, located on the 1St floor of the South Shore
Community Center (a/kola the 6t" Street Com :ity Center o'r the "'Building")�, to aced at
833 Sixth ��treet, Miarn�i Bean Florida, 33139; said concession agree t,er t having an
initial term of foul (4) years and 3.64 days, commencing on October 2, 2009, and ending
on September,30, 2014; and
WHEREAS, on ®ctober 2�9, 2104,, the Mayor and Lie mmission adopted
Re. lution No. 2:014--l-ml acceptingF the recommeft the Finance and
Citywide Projects Committee and approvinand aonzin the ayor and City Clerk to
exeute the following Amendment No. 1 to he eo:ncession Agreement; and
NOW I EREFO' SE, the City and Concessio I e, for and in consideratian of the
mutual covenants, agreements a!nd undertakings herein contained, do by these
presents mutually cove ,nt and a R e, amend the G Me Agreement, as follows:
1. Section 1, entitled "Term", on Page 2 of the Concession Agreement, shall be
amended (deleted items str-UGk th-o gh and inserted items underlined) as
follows:
1.1 It is the intent of the parties hereto that the term of this Agreement,
innli d*Rg any renewal terms, is to run concurrent with the term of that
certain Lease Agreement between the City of Miami Beach and Jewish
Community Services of South Florida, Inc., dated September 9, 2009
(hereinafter,' the "Lease Agreement"). Accordingly, this Concession
Agreement shall be for an initial term of fni it //I1 „eaF and three hundFed
Qmvt X fnllr (3 64) days, n RGin��+he 2nd day of C)Gtob r� 7009 (the
��rnmmennement rl�+e��\ �niJ an An the '2nth day of CeptemheF 2014.
�vrrrrr r���-r r�-rr-��r , �0 �Fr�rrrv� ,
a term of five (5) years, retroactively commencing on the 1St day of
October, 2014 (the "Commencement Date") and ending on the 30t" day of
September 2019. For purposes of this Agreement, and i R G di.m. ,
lli iii ,SubseGtinn 1.2 below, a "contract year" shall be defined as that
certain period commencing on the 1st day of October, and ending on the
30th day of September.
EXHIBIT
1 IL
1 2 At the expiFiraati�nf th�i �eFFn herein and pFE)Vided that
CTT� OT- T GT�TI�ILTL7T7 j G���"' F'��Y�G�-
GGRGe iS in geed standing and free from default(S) t Rder Sentinn
1_3_ hereof,. TaTcre Tnnt int�tn utilize the GeRGession
AFea an aGGGFdaRGe with the stated puFpese(s)iuse(s) f
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parties hereto (with_the Gity, h by aut�ra th Gity Manager to
event tte OR behalf of the Gity) ",,�
Notwithstanding the piee•ediner within •nets (90) days nrinr tnfhe
e vc R i n�rvrnrvf the-tFtFttQt-tG'tttt, the C.1.Y ..-..
t
wrotteR REACe of Gt te•h e!eE n. If, fnllOWeRg geed-faith negetiatinnS
betweeR the Gity and GGRGessiE)RauFe, the parties are t tnahle to agFee'
then the Gity Manaer r may ft trFher eleGt't``n'' RG-t rene��i the AgFeemen��
aTr�Tr �r��tir�v-rrvrT�T�-v'T �r��rr�r� ,
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2. Section 3, entitled "Use(ss}', on Page 3 of the Concession Agreement, shall be
amended (deleted items , and rase d items underh, as
follows:
3.1.1 Concessionaire shall be required to meet certain performance
benchmarks more specifically described as follows:
Senior Meals Program: 9,000 meals served annually (100% shall
be Miami Beach residents).
3. Section 4, entitled "Concession Fees", on Pages 3-4 of the Concession
Agreement, shall be amended (deleted items StruGk through and inserted items
underlined) as follows:
4.2.1 Operating Expenses.
wrT
�'nn mire shall nay Cat tr I--It tnrlred FeFty Sox Dollars and
49/100 /Q4421 � 9 n ORth far its nmpnyFtienate share of.
" eeFati.R.n. FEXqA-Rse6" whie•h are defined as fnllow
Throughout the first year of the Term, Concessionaire shall pay
Five Hundred Twelve Dollars and 45/100 ($512.45) per month, for
its proportionate share of "Operating Expenses" which are defined
2
below. Throughout the second year of the Term, Concessionaire
shall pay Five Hundred Seventy Eight Dollars and 18/100 ($578.18)
per month, for its proportionate share of Operating Expenses.
Throughout the third year of the Term, Concessionaire shall pay Six
Hundred Forty Three Dollars and 91/100 ($643.91) per month, for
its proportionate share of Operating Expenses. Thereafter, the
Operating Expenses shall be subject to adjustment pursuant to
Subsection 3.2.1.1 below.
"Operating Expenses" shall mean the following costs and expenses
incurred in operating, repairing, and maintaining the Common
Facilities (as hereinafter defined) and shall include electrical
service, water service, sewer service, stormwater costs,
maintenance and repairs costs, and janitorial service to the Building
(including the Demised Premises).
"Common Facilities" shall mean all Building areas, spaces,
equipment, as well as certain services, available for use by or for
the benefit of Concessionaire and/or its employees, agents,
servants, volunteers, customers, guests and/or invitees.
Commencing the fourth year of the Term, irrespective Irrespective
of the items listed above, amounts due by Concessionaire,
associated with Common Facilities Operating Expenses, will be
determined based on Concessionaire's pro-rata share of the items
more specifically described in "Exhibit 4.2.1", which is hereby made
a part of this Concession Agreement. Pro-rata share shall mean the
percent which the Concession Area bears to the total square
footage of leasable space within the Building, which share is hereby
agreed to be six (6%) turner,+ 5.506%. Concessionaire agrees and
understands that the costs incurred for Operating Expenses may
increase or decrease and, as such, Concessionaire's pro-rata
share of Operating Expenses shall increase or decrease
accordingly.
4. Except as otherwise specifically amended herein, all other terms and conditions
of the Concession Agreement by and between the Landlord and Concessionaire
shall remain in full force and effect. In the event there is a conflict between the
provisions provided herein and the Concession Agreement, the provisions of this
Amendment No. 1 to Concession Agreement shall govern.
[The remainder of this page has been left intentionally blank]
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IN WITNESS WHEREOF, this Amendment has been duly executed by the
parties hereto as of the day and year first written above.
Attest: CITY OF MIAMI BEACH, FLORIDA
Rafael Granado, CITY CLERK Philip Levine, MAYOR
Attest: JEWISH COMMUNITY SERVICES OF
SOUTH FLORIDA, INC.
Signature Fred Stock, CEO
Print Name
i
Signature
Print Name
CORPORATE SEAL
(affix seal here) 1i
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EXHIBIT 4.2.1
Operating Expenses
South Shore Community Center
833 6th Street
2013 Fiscal Year Operating Expenses(Total without Insurance)
Per Leasable
Total Square Foot
Cost Cost
Utilities Electricity 49,263 3.89
Water 3,454 0.27
Sewer 2,951 0.23
Stormwater(estimate) 2,500 0.20
Subtotal $ 58,172 $ 4.59
Maintenance Janitorial 33,189 2.62
Elevator 1,428 0.11
Cooling Tower Treatment 1,644 0.13
Fire Services 362 0.03
Pest Control 642 0.05
Repairs& Maintenance 44,691 3.53
Subtotal $ 81,962 $ 6.47
Insurance Property Insurance
Hurricane Exposure
Subtotal $ - $ -
Total Annual Operating Expenses $ 140,135 $ 11.06
Building Square Footage Distribution
1st Floor 2nd Floor Total
Leasable Area 8,850 3,826 12,676
Common Area 4,198 990 5,188
Total 13,048 4,816 17,864
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