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2015-29074 Reso RESOLUTION NO. 2015-29074 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMISSION COMMITTEE, AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT, SUBSTANTIALLY IN THE FORM ATTACHED TO THIS RESOLUTION, BETWEEN THE CITY AND SB WAXING, INC. (TENANT), FOR THE USE OF APPROXIMATELY 1,291 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 3 (A/K/A 771 17TH STREET), MIAMI BEACH, FLORIDA (PREMISES), FOR A TERM OF FIVE (5) YEARS, WITH ONE (1) RENEWAL OPTION (AT TENANT'S OPTION) FOR FOUR (4) YEARS AND THREE HUNDRED AND SIXTY FOUR (364) DAYS. WHEREAS, on July 15, 2009, the Mayor and City Commission adopted Resolution No. 2009- 27129 approving a lease agreement between the City and the Roma Waxing, Inc. (d/b/a Uni.K Wax) for the use of approximately 1,291 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a/k/a 771 17th Street), Miami Beach, Florida, to be used for the purpose(s) of operating a hair removal facility, including waxing and retail sales of related items, as well as facials and retail sales of related items; and WHEREAS, the lease contained an initial term of three (3) years, commencing August 1, 2009 and ending July 31, 2012, with one (1) renewal option for an additional three (3) years; and WHEREAS, on December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009-27275 approving a Consent to Assignment and Assumption of Lease Agreement whereby Roma Waxing, Inc. assigned its lease to SB Waxing, Inc. (d/b/a Uni.K Wax) (Tenant) and certain terms and conditions of the Lease Agreement were modified; and WHEREAS, on May 30, 2012, Tenant exercised its sole renewal option for a period of three (3) years, commencing August 1, 2012 and ending July 31, 2015; and WHEREAS, Tenant requested a new lease for an initial term of five (5) years, commencing August 1, 2015 and ending July 31, 2020, with one (1) renewal option for an additional four (4) years and three hundred and sixty four (364) days; and WHEREAS, the Administration secured a fair market rent analysis and negotiated material terms and conditions for a new lease agreement with Tenant; and WHEREAS, the Administration submitted the agreed upon terms and conditions to the Finance and Citywide Projects Committee (FCWPC) at its July 1, 2015 meeting, and the FCWPC recommended approving a new lease agreement with Tenant, for a period of five (5) years, with one (1) renewal option for an additional four(4) years and three hundred and sixty four (364) days, containing the following essential terms: Initial Term: Five (5) years commencing August 1, 2015 and ending July 31, 2020. Renewal Option: So long as Tenant has never been in an uncured default of the Lease, upon providing Landlord written notice six (6) months prior to the expiration of the Initial Lease Term, Tenant shall have one (1) renewal option, for a period of four (4) years and 364 days, at the then prevailing fair market rent. Termination Option: In the event the City determines, in its sole and absolute discretion, to demolish, renovate or repurpose the 1701 Meridian Avenue building, the City shall have the right to terminate the lease at any time throughout the Initial Term, or renewal term, upon providing one hundred eighty days (180) prior written notice to Tenant. Base Rental Rate: $42.00 Triple Net, per rentable square foot, plus applicable sales tax. Increases: The Base Rental Rate shall be increased by three percent (3%) annually. Lease Basis: Triple Net - Tenant shall pay its proportionate share of the costs of real estate taxes, insurance and maintenance expenses. Security Deposit: Two (2) month's gross rent Construction Tenant shall accept the Premises in "as-is" condition. Allowance: WHEREAS, the Administration recommends the approval of a new lease agreement containing these essential terms, substantially in the form attached hereto as Exhibit A. 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 waive, by 5/7ths vote, the competitive bidding requirement, finding such waiver to be in the best interest of the City; and approving and authorizing the Mayor and City Clerk to execute a lease agreement, substantially in the form attached to this Resolution, between the City and SB Waxing, Inc. (Tenant), for the use of approximately 1,291 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a/k/a 771 17th Street), Miami Beach, Florida (Premises), for a term of five (5) years, with one (1) renewal option (at Tenant's option) for four(4) years and three hundred and sixty four(364) days. PASSED and ADOPTED this Y day of f;// 2015. ATTEST: B i AgAr 0 Raf- -1E. Grana•o, City . erJ -.. ,, lhi '• e, •• R 02,1ZE T:\AGENDA\2015\July\TCED\SB Waxing, c SB WaxinOg, In. SO(F.sn . ¢,r' z 44i A •" 'i APPROVED AS TO *. '7 j4C""' FORM & LANGUAGE & FOR EXECUTION f G 7/7/2 ' .° ity Attorney Da COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Accepting The Recommendation Of The Finance And Citywide Projects Committee, And Waiving By 5/7ths Vote, The Competitive Bidding Requirement, Finding Such Waiver To Be In The Best Interest Of The City; And Approving And Authorizing The Mayor And City Clerk To Execute A New Lease Agreement, Between The City And SB Waxing, LLC (Tenant), For The Use Of Approximately 1,291 Square Feet Of City-Owned Property Located At 1701 Meridian Avenue, Unit 3 (a/k/a 771 17th Street), For A Term Of Five (5) Years, With One (1) Renewal Option For An Additional Four(4)Years and 364 Days. Key Intended Outcome Supported: N/A Supporting Data(Surveys, Environmental Scan,etc.): N/A Item Summary/Recommendation: The City of Miami Beach and SB Waxing, Inc. (d/b/a Uni.K Wax) ("Tenant") are parties to a lease dated July 15; 2009 for the use of approximately 1,291 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a/k/a 771 17th Street), Miami Beach, Florida, to be used for the purpose(s) of operating a hair removal facility, including waxing and retail sales of related items, as well as facials and retail sales of related items. The lease contained an initial term of three (3)years, commencing August 1, 2009 and ending July 31, 2012,with one (1) renewal option for an additional three (3) years. Tenant exercised its sole renewal option for a period of three (3) years, commencing August 1,2012 and ending July 31,2015. Tenant requested a new lease for an initial term of five (5)years, commencing August 1, 2015 and ending July 31, 2020, with one(1) renewal option for an additional four(4)years and three hundred and sixty four(364)days. Subsequently, the Administration secured a fair market rent analysis and negotiated material terms and conditions for a new lease agreement. The terms and conditions of the new lease agreement include an initial term of five (5)years, commencing August 1, 2015 and ending July 31, 2020, with an additional renewal option for a period of four (4) years and 364 days, at the then prevailing fair market rent. The Base Rental Rate is $42.00 PSF, with three percent (3%) annual increases, plus $11.80 PSF for Operating Expenses. Tenant shall accept the Premises in "as-is" condition and shall provide two (2) month's security deposit. There are no brokerage commissions due for this transaction. In the event the City determines, in its sole and absolute discretion, to demolish, renovate or repurpose the 1701 Meridian Avenue building, the City shall have the right to terminate the lease at any time throughout the Initial Term, or renewal term, upon providing one hundred eighty days(180)prior written notice to Tenant. The Administration recommends that the City Commission adopt the recommendation of the FCWPC from its July 1, 2015 meeting,and approve a new lease agreement, subject to final review and approval by the City Attorney's Office. Advisory Board Recommendation: The Administration submitted the agreed upon terms and conditions to the Finance and Citywide Projects Committee (FCWPC)at its July 1, 2015 meeting,and the FCWPC recommended approving a new lease agreement with Tenant,for a period of five(5)years; and further recommended allowing one(1)additional renewal option for five(5)years. Financial Information: Amount Account Source of Funds: 1 N/A Financial Impact Summary: The Base Rental Rate is $42.00 PSF, plus Operating Expenses of$11.80 PSF. Over the initial five(5)year term of the lease the aggregate Base Rent amounts to$287,872 and Operating Expenses are projected at$76,169. City Clerk's Office Legislative Tracking: Max Sklar,ext.6116 Sign-Offs: r De artmeh Dye o, Assistant t4 nager City Ma MAS '��'�J� KGB_,g4 / 1 " o T:WGENDA\2015\July\TC' '•B Waxing, Inc\SB Waxing, Inc.SU (7-2-15).docx MIAMIBEACH AGENDA ITEM r17A DATE 7-4-1 • MIAMI BED H City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members f the City ■ ommission FROM: Jimmy L. Morales, City Manager ........-A ...` DATE: July 8, 2015 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMISSION COMMITTEE, AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY AND SB WAXING, INC. (TENANT), FOR THE USE OF APPROXIMATELY 1,291 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1701 MERIDIAN AVENUE, UNIT 3 (A/K/A 771 17TH STREET), MIAMI BEACH, FLORIDA (PREMISES), FOR A TERM OF FIVE (5) YEARS, WITH ONE (1) RENEWAL OPTION FOR FOUR (4) YEARS AND THREE HUNDRED AND SIXTY FOUR (364) DAYS. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND On July 15, 2009, the Mayor and City Commission adopted Resolution No. 2009-27129 approving a lease agreement between the City and the Roma Waxing, Inc. (d/b/a Uni.K Wax) for the use of approximately 1,291 square feet of City-owned property, located at 1701 Meridian Avenue, Unit 3 (a/k/a 771 17th Street), Miami Beach, Florida, to be used for the purpose(s) of operating a hair removal facility, including waxing and retail sales of related items, as well as facials and retail sales of related items. The lease contained an initial term of three (3) years, commencing August 1, 2009 and ending July 31, 2012, with one (1) renewal option for an additional three (3) years On December 9, 2009, the Mayor and City Commission adopted Resolution No. 2009- 27275 approving a Consent to Assignment and Assumption of Lease Agreement whereby Roma Waxing, Inc. assigned its lease to SB Waxing, Inc. (d/b/a Uni.K Wax) (Tenant) and certain terms and conditions of the Lease Agreement were modified. Commission Memorandum SB Waxing, Inc. -New Lease Agreement July 8, 2015 Page 2 of 4 On May 30, 2012, Tenant exercised its sole renewal option for a period of three (3) years, commencing August 1, 2012 and ending July 31, 2015. ANALYSIS Tenant requested a new lease for an initial term of five (5) years, commencing August 1, 2015 and ending July 31, 2020, with one (1) renewal option for an additional four (4) years and three hundred and sixty four(364) days. In order to obtain current and accurate market rental data, the City procured the services of a certified appraiser to provide a Market Rent Analysis, dated April 30, 2015 (the "Analysis"), which is attached hereto as Exhibit A (Market Rent Analysis). As contained in the Analysis, the current market rent for comparable retail space at 1701 Meridian Avenue is $45.00 per square foot, on a triple net (NNN) basis, with operating expenses averaging $15.01 per square foot. The City entered into negotiations with Tenant and agreed to a non-binding Letter of Intent, dated June 19, 2015, which is attached hereto as Exhibit B (Letter of Intent). The basic terms and conditions of the Letter of Intent are as follows: Size: Approximately 1,291 rentable square feet Initial Term: Five (5) years commencing August 1, 2015 and ending July 31, 2020. Renewal Option: So long as Tenant has never been in an uncured default of the Lease, upon providing Landlord written notice six (6) months prior to the expiration of the Initial Lease Term, Tenant shall have one (1) renewal option, for a period of four (4) years and three hundred and sixty four (364) days, at the then prevailing fair market rent. Termination Option: In the event the City determines, in its sole and absolute discretion, to demolish, renovate or repurpose the 1701 Meridian Avenue building, the City shall have the right to terminate the lease at any time throughout the Initial Term, or renewal term, upon providing one hundred eighty days (180) prior written notice to Tenant. Base Rental Rate: $42.00 Triple Net, per rentable square foot, plus applicable sales tax. Increases: The Base Rental Rate shall be increased by three percent (3%) annually. Lease Basis: Triple Net -Tenant shall pay its proportionate share of the costs of real estate taxes, insurance and maintenance expenses. Security Deposit: Two (2) month's gross rent Commission Memorandum SB Waxing, Inc. -New Lease Agreement July 8, 2015 Page 3 of 4 Construction Tenant shall accept the Premises in "as-is" condition. Allowance: Additionally, the Lease Agreement, in substantial form, subject to final review and approval by the City Attorney's Office, is attached hereto as Exhibit C (Lease I Agreement). Under the current Lease, Tenant is paying an annual rate of $31.85 per square foot, on a NNN basis. Additionally, Tenant pays $11.80 PSF for operating expenses which consist of $6.90 PSF for real estate taxes, $4.00 PSF for maintenance expenses and $0.90 PSF for insurance. South Florida Salon Group is currently $55.73 PSF on a gross basis. Massage Partners is currently paying $29.28 PSF on a NNN basis, plus $11.80 PSF for operating expenses. Damian Gallo &Associates is currently paying $37.74 PSF on a NNN basis, plus $11.80 PSF for operating expenses (plus 15% of gross sales above the gross rent for the café portion of the premises). A current rent detail for all four (4) retail tenants at 1701 Meridian Avenue, and the proposed new rent for Tenant, are contained in the following charts: Tenant Suite Sq.Ft. Rent Basis RE Taxes Insurance C.A.M. Total South Florida Salon Group,Inc. 1 1,327 Monthly $ 6,162.71 $ - $ - $ - $ 6,162.71 Annually $73,952.49 $ - $ - $ - $73,952.49 PSF $ 55.73 Gross $ - $ - $ - $ 55.73 Massage Partners,Inc. 2 1,803 Monthly $ 4,399.47 $ 1,036.38 $ 135.22 $ 600.96 $ 6,172.03 Annually $52,793.61 $12,436.60 $ 1,622.64 $ 7,211.52 $74,064.37 PSF $ 29.28 NNN $ 6.90 $ 0.90 $ 4.00 $ 41.08 SB Waxing,Inc. 3 1,291 Monthly $ 3,426.18 $ 742.08 $ 96.79 $ 430.20 $ 4,695.25 Annually $41,114.12 $ 8,904.97 $ 1,161.48 $ 5,162.40 $56,342.97 PSF $ 31.85 NNN $ 6.90 $ 0.90 $ 4.00 $ 43.64 Damian J.Gallo&Associates,Inc. 4 1,269 Monthly $ 3,990.92 $ 785.18 $ 95.17 $ 422.96 $ 5,294.23 Annually $47,891.04 $ 8,753.21 $ 1,142.04 $ 5,075.52 $62,861.81 PSF $ 37.74 NNN $ 6.90 $ 0.90 $ 4.00 $ 49.54 *Plus 15%of Gross Sales above Gross Rent for Café space(801 SF) SB Waxing,Inc.(PROPOSED) 3 1,291 _ Monthly $ 4,518.50 $ 742.08 $ 96.79 $ 430.20 $ 5,787.57 Annually $54,222.00 $ 8,904.97 $ 1,161.48 $ 5,162.40 $69,450.85 PSF $ 42.00 NNN $ 6.90 $ 0.90 $ 4.00 $ 53.80 As illustrated above, the proposed new lease contains an increase in Tenant's gross rental rate from $43.64 PSF to $53.80 PSF. This represents an increase of over twenty three percent (23%). FINANCE AND CITYWIDE PROJECTS COMMITTEE At the July 1, 2015 Finance and Citywide Projects Committee (FCWPC) meeting, the Administration presented the terms and conditions set forth above. The FCWPC considered this matter and recommended approving a new Lease Agreement with SB Commission Memorandum SB Waxing, Inc. -New Lease Agreement July 8, 2015 Page 4 of 4 Waxing, Inc., for a period of five (5) years, with (1) renewal option for an additional four (4) years and three hundred and sixty four (364) days. CONCLUSION AND RECOMMENDATION The Administration recommends in favor of executing a new lease agreement with Tenant, in accordance with the above stipulated terms and conditions. The Administration is seeking a recommendation from the Finance and Citywide Projects Committee. JLM/ B MMM Exhibits: A Market Rent Analysis B Letter of Intent C Lease Agreement T:\AGENDA\2015\July\TCED\SB Waxing, Inc\SB Waxing, Inc.MEMO(6-18-15).docx ` f - a. ti• cf ExhibitA s. ..,..,..,..-- , .r r J { z,.. • • __, r - -., - . „ . .,,, .. , :.--,-,:,.,..-,-,,,-.:-,__,-.- _ _ - .=s:c,,,,,:.._,,_, -, , . ,, -. : .,,-, ,..",,,-.. ,,-„..-,.._._:-...,, ,_::,..,_ ,.. ,,..-., .,_ ., ,- _ , _ :,--,, .i,,,,,,,,,,„--4...,,,,i,.. : . „, -._:„.,-,,-.i .-..,... , , ,:,. .... ,..- ,, .. .. ... :,,. ._-. ......._,:,-..,-..,,,L..-,-..-:,_-,,,,,,,,,,,„.,--c,:-.,,..-,,,:,...,-„....,,: .:,.........,..,..,::„-....,,.,_. -....,,.. , , . r,„„.„•, ,_,, .,..-„,-,,:, . 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The physical inspection and analysis that form the basis of the report has been conducted by the undersigned. Our analyses have been prepared in compliance with the standards and regulations of the Uniform Standards of Professional Practice(USPAP). The accompanying report includes pertinent data secured in our investigation, exhibits and the details of the processes used to arrive at our conclusion of value. As a result of the examination and study made, it is my opinion that the Market Rent of the two properties, subject to economic conditions prevailing,as of April 30,2015,the date of the analysis are: Pro pert∎ \tlklre Market T∎pe Total Operating Rent of Rent Expenses Retail 1701 Meridian Ave. $45 NNN $15.01 Restaurant 1661 Pennsylvania Ave. $70 NNN $15.57 Respectfully submitted, BLAZEJACK&COMPANY 1410 ;', lell:)...._.7 iL:::121,_ Thomas J.Blazejack,MAI,AI-GRS,CCIM Jose Wong President Senior Consultant Cert Gen RZ-1015 Cert Gen RZ-2797 Digitally signed by Thomas J.Blazejack,MAI,CCIM DN:cn=Thomas J.Blazejack,MAI,CCIM,o=Blazejack &Company,ou=State Cert.Gen.R.E.A.1015, email=tom @blazejack.com,c=US Date:2015.05.04 10:13:35-04'00' 172 W FLAGLER STREET,SUITE 340,MIAMI,FLORIDA 33130•PHONE(305)372-0211 •FAX(305)374-1948 Pennsylvania and Meridian Ave REPORT 201526 SUMMARY OF FACTS AND CONCLUSIONS • %pp w „- . 041$1ffi ; Property Name: 1701 Meridian Avenue Property Type: Retail Location: 1701 Meridian Avenue Miami Beach FL 33139 Parcel Identification 02-3234-226-0010 Source:Miami Dade Public Records Owner: City of Miami Beach Client: City of Miami Beach Interest Appraised: Market Rent Date of Appraisal: April 30,2015 Dates of Inspection: April 28,2015 Date of Report: April 30,2015 Property Size: 1,291 SF Highest and Best Use: As Vacant: Mixed-Use Building Development As Improved: Continued use as Mixed-Use Building Value Indication,as of April 30,2015: Property Address Market Type Total Operating Rent of Rent Expenses Retail 1701 Meridian Ave. $45 NNN $15.01 BLAZEJACK& COMPANY REAL ESTATE COUNSELORS Pennsylvania and Meridian Ave REPORT 201526 411111,11W . a 'MID ' STOP w -� ,� 1- Laitaaw„_,,...4.. - Property Name: 1661 Pennsylvania Ave. Property Type: Retail-Restaurant Location: 1661 Pennsylvania Ave.Miami Beach FL 33139 Parcel Identification 02-3234-226-0010 Source:Miami Dade Public Records Owner: City of Miami Beach Client: City of Miami Beach Interest Appraised: Market Rent Date of Appraisal: April 30,2015 Dates of Inspection: April 28,2015 Date of Report: April 30,2015 Property Size: 7,807 SF. Additional 2,230 SF for storage in the underground. Highest and Best Use: As Vacant: Mixed-Use Building Development As Improved: Continued use as Mixed-Use Building Value Indication,as of April 30,2015: l'ro pe rt v Address Market Type Total Operating Rent of Rent Expenses Restaurant 1661 Pennsylvania Ave. $70 NNN $15.57 BLAZEJACK& COMPANY REAL ESTATE COUNSELORS Pennsylvania and Meridian Ave REPORT 201526 TABLE OF CONTENTS CERTIFICATE OF VALUE 1 ASSUMPTIONS AND LIMITING CONDITIONS 2 MARKET RENT ANALYSIS 3 IDENTIFICATION OF THE PROPERTY 4 PURPOSE DATE AND FUNCTION OF THE REPORT 4 SCOPE OF THE ASSIGNMENT 4 DEFINITIONS OF VALUE AND INTEREST APPRAISED 4 1701 Meridian Avenue UNIT 3 6 LEGAL DESCRIPTION 7 MARKET RENT ANALYSIS 7 CONCLUSION 11 1661 Pennsylvania Ave. 12 PROPERTY HISTORY 13 LEGAL DESCRIPTION 13 MARKET RENT ANALYSIS 14 CONCLUSION 18 ADDENDA Exhibit A Subject Photographs Exhibit B Comparable Rent Photographs Exhibit C Contract Leases Exhibit D Engagement Letter Exhibit E Qualifications of the Appraisers BLAZEJACK & COMPANY REAL ESTATE COUNSELORS Pennsylvania and Meridian Ave REPORT 201526 CERTIFICATE OF VALUE I certify that,to the best of my knowledge and belief, • the statements of fact contained in this report are true and correct. • the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions,and are my personal,unbiased professional analyses,opinions,and conclusions. • We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • We have performed no services regarding the property that is the subject of this report within the three- year period immediately preceding acceptance of this assignment. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion,the attainment of a stipulated result,or the occurrence of subsequent event directly related to the intended use of this appraisal. • Our analyses,opinions,and conclusions were developed,and this report has been prepared,in conformity with the Uniform Standards of Professional Appraisal Practice. • Jose Wong have made a personal inspection of the property that is the subject of this report. Thomas J. Blazejack has not made a personal inspection of the property. • No one provided significant real property appraisal assistance to the persons signing this certification. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representative. • As the date of this report Thomas J. Blazejack has completed the continuing education program of the Appraisal Institute. Jose Wong has completed the requirements of the education program established by the State of Florida. • BLAZEJACK&COMPANY All . P i / /.%,,r leeK1) ' - Thomas J.Blazejack,MAI,AI-GRS,CCIM Jose Wong President Senior Consultant Cert Gen RZ-1015 Cert Gen RZ-2797 Digitally signed by Thomas J.Blazejack,MAI,CCIM DN:cn=Thomas J.Blazejack,MAI,CCIM,o=Blazejack& Company,ou=State Cert.Gen.R.E.A.1015, email=tom @blazejack.com,c=US Date:2015.05.04 10:14:20-04'00' BLAZEJACK& COMPANY 1 CERTIFICATE 1 Pennsylvania and Meridian Ave REPORT 201526 ASSUMPTIONS AND LIMITING CONDITIONS The appraisal is subject to the following assumptions and limiting conditions: 1 No survey of the subject property was undertaken. 2 The subject property is free and clear of all liens except as herein described. No responsibility is assumed by the appraisers for matters, which are of a legal nature, nor is any opinion on the title rendered herewith. Good and marketable title is assumed. 3 The information contained herein has been gathered from sources deemed to be reliable. No responsibility can be taken by the appraisers for its accuracy. Correctness of estimates, opinions, dimensions, sketches and other exhibits which have been furnished and have been used in this report are not guaranteed. The value estimate rendered herein is considered reliable and valid only as of the date of the appraisal, due to rapid changes in the external factors that can significantly affect the property value. 4 This study is to be used in whole and not in part. No part of it shall be used in conjunction with any other appraisal. Publication of this report or any portion thereof without the written consent of the appraiser is not permitted. 5 The appraisers herein, by reason of this report, are not required to give testimony in court with reference to the property appraised unless notice and proper arrangements have been previously made therefore. 6 The value estimate assumes responsible ownership and competent management. The appraiser assumes no responsibility for any hidden or in apparent conditions of the property, subsoil, or structures,which would render it more or less valuable. No responsibility is assumed for engineering, which might be required to discover such factors. 7 Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media without the written consent and approval of the authors, particularly as to valuation conclusions,the identity of the appraisers or firm with which they are connected,or any reference to the Appraisal Institute. 8 Any exhibits in the report are intended to assist the reader in visualizing the property and its surroundings. The drawings are not intended as surveys and no responsibility is assumed for their cartographic accuracy. Any drawings are not intended to be exact in size, scale,or detail. Areas and dimensions of the property may or may not have been physically measured. If furnished by the principal or from plot plans or surveys furnished by the principal, or from public records, we assume them to be reasonably accurate. No responsibility is assumed for discrepancies, which may become evident from a licensed survey of the property. 9 The Americans with Disabilities Act(ADA)became effective January 26, 1992 sets strict and specific standards for handicapped access to and within most commercial and industrial buildings. Determination of compliance with these standards is beyond appraisal expertise and, therefore, has not been attempted by the appraisers. For purposes of this appraisal, we are assuming the building is in compliance; however, we recommend an architectural inspection of the building to determine compliance or requirements for compliance. BLAZEJACK& COMPANY 2 ASSUMPTIONS AND LIMITING CONDITIONS Pennsylvania and Meridian Ave REPORT 201526 MARKET RENT ANALYSIS BLAZEJACK& COMPANY 3 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 IDENTIFICATION OF THE PROPERTY The properties under analysis in this report, are two retail spaces located at 1661 Pennsylvania Ave. and 1701 Meridian Avenue Unit 3 in Miami Beach FL 33139. The property at Pennsylvania Avenue is a restaurant space. The property at Meridian Avenue is a general retail space. PURPOSE DATE AND FUNCTION OF THE REPORT The purpose of this report is to estimate the market rent for the retail space. The date of the analysis was April 30, 2015. It is understood that the function of this report is for internal asset management for lease negotiations. SCOPE OF THE ASSIGNMENT This is a summary analysis presented in a narrative report. The scope of this analysis was to inspect the property, consider market characteristics and trends, collect and analyze pertinent data, develop a conclusion and estimate the property's market rent. During the course of this assignment, we developed and analyzed current retail space rents located in the Miami Beach area. The extent of verification consisted of assembling and analyzing raw data gathered from a variety of sources including public records data services, news periodicals, broker or knowledgeable third parties when available,and in-houses files. DEFINITIONS OF VALUE AND INTEREST APPRAISED According to the Code of Federal Regulations, Title XI of the Financial Institutions Reform,Recovery and Enforcement Act of 1989 ("FIRREA"), and according to the 12th Edition of The Appraisal of Real Estate,market value is defined as follows: Market Value The most probable price, which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1 Buyer and seller are typically motivated. BLAZEJACK& COMPANY 4 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 2 Both parties are well informed or well advised,and acting in what they consider their own best interests; 3 A reasonable time is allowed for exposure on the open market. 4 Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto;and 5 The price represents a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Fee Simple Interest Absolute ownership unencumbered by any other interest or estate,subject only to the limitations imposed governmental powers of taxation,eminent domain,police power,and escheat. Leased Fee Interest An ownership interest held by a landlord with the right to use and occupancy conveyed by a lease to others; usually consists of the right to receive rent and the right to possession at termination of the lease. Market Rent The rental income that a property would most probably command on the open market; indicated by current rents paid and asked for comparable space as of the date of the appraisal. Source: Appraisal Institute,The Appraisal of Real Estate, 13th Edition,(Chicago,2008) BLAZEJACK& COMPANY 5 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 1701 Meridian Avenue UNIT 3 ,0., 1 , . .. wil ___ ... • • T i t ` 4 iI, rya►. . gall•. i `1 ~, 1.1 M '• 1.V _ t • ___ . • . Lark p W f' - i �r r.. •to _� i! e : N L,.NC O L N f. .• ' r jx i iii t ., T r,i 1"q..: ,' *LINCOLN RD LINCON RO Im .... T lit 141 il f f 1 In 1111 1 1 l i „..ors ,r geig 4E The building is located at the NEC of 17th Street and Meridian Avenue at 1701 Meridian Avenue Unit 3. The Subject unit#3 has 1,291 SF according to Public Records of Miami Dade. The building is a four-story structure that contains retail spaces on first floor and office space on second, third and fourth floors. Currently, the retail space is leased to Roma Waxing, Inc. for waxing treatments services. The contract lease can be found in the Addenda. BLAZEJACK& COMPANY 6 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 44,1-44 , ` Ik i •\ A to IL t mer 3 r Lio 4 .• 1), a • I I 111'11 ;if:i-%;;',11111teEE ..wrwatwn-.-w.vxv rI r-r suR 17th.SWEET • PROPERTY HISTORY The property is held in the name of City of Miami Beach according to the Public Records of Miami Dade County. We are not aware of any transfer of the property or purchase listing or offering within the past five years. LEGAL DESCRIPTION Short Legal Description 1701 MERIDIAN BLDG CONDO UNIT 3 UNDN 1290.59/28466 INT IN COMMON ELEMENTS OFF REC 25724-1183 MARKET RENT ANALYSIS Retail Market We are estimating the market rent of the subject property, therefore a rent survey of the Miami Beach area was conducted. The basis for classification was location, design, and quality of construction,quality of interior finishes,age,and condition. The comparable properties selected give an indication of the level of rent that could be commanded by the subject if offered in the open market. The restaurant rent survey, a location BLAZEJACK& COMPANY 7 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 map, and a table of adjustments can be found following. Photos of the comps are shown in the Addenda. All the retail rates in our survey are asking rates. Leasing agents interviewed in gathering rental data indicated that no concessions are provided although some terms are negotiable depending on the credit of the prospect, size of space and length of the lease. In most cases,the rates actually achieved in leases are near the asking rates. Y�1 " 1 i � -- t, -.' . ,, '14' :: I ,, ',9_J�m --). v, / . W 215T)5T 6 !y 22ND ST_°7 �� r aS 1 14 ,MIMI w I , % a4- Retail Rent 4 �N/ST ar 19 �L°:. / w 1841 Washington Ave. '�/ Q ----- Q; s4111SF . Qr u, r- 7 4---Sr . . ,n City Park m re + ` 4.0 . 19TH ST ,, 1.9191 ST z r 1 . -� y r 0 J - , - SUBJECT-Retail n A 1 3T-_ Ip ;� -w 1701 Meridian Ave.unit 3 i 1 rn 'z -� _ t '-c g G. aa o r 1 I < 0 a -ii: D 17111;- - ---, o �' "1 ( z Retail Rent 3 Z—�,A I1 r it tNCgry gton Ave0 u'll N-� LINCOLN LN N� 1 •The Li ® W l r'—" r Retail Rent 1 I' ]NCOLN_LN S = I ■ LIr�COLJI-TER II b ncotn y — t N (� 1691 Michigan Ave. I 1 ST -_ ice L— I»� / 1Hi_I_IE:91.,L� 45srsF -1� o -�z u ,, i —C STt1_ST ; i._Jilt ._I �H -i=L_ Retail Rent 2 �+) 14 1516 Washington Ave. i - , ) m —�I lr�, z 47515E i \ 14TH 5 T. __.4.141:07,,1 7 E _ 14TH �';rL _. 1 \MOII�IDTER' N _.-�� --- --t--.,,_-_ ,_.1 1 . , ! ,..,, . ; ,_....,______,` irn `I* I �I 9 Alit_ Y 3 1 L 'a DLLORM Oath use subject t1 Jed W license. — ®DeLorme.DeLorme Street Atlas USi S)2010. Soo two 1500 www.debrme.com MN(6.3'NO Data Zoom 136 Retail Map Comparable BLAZEJACK& COMPANY 8 MARKET RENT ANALYSIS CD m Q CIO C N 0 0 c3 ' O C C N O 'V O C N cn 's 0 O E O 0 a:: _. 0 o .: i .a ..g. cis , R1 C U 0 2 V t,U d) ) N= V V C cr 4- Q .0 N d= a 3 O ,L n 3 cl a a, - an f -4, cc A O • �Cr o a, o p2 cd w 0 A o a. o Kn o a, oe 3 M U 0 C, •s 3 cV 0 c4 ,� aq n x „. O 6 O I v> > cai 3 a) N >,^.. �p v al 3 w -. ai vi y 9 M p.° aA C c. aa) .0 a, .4 Q ; rn 0 §) E E. 0 3 ° 1 ° E. 0 H tb ° w, q 4. l 5 o U O i b o ao -C:$ v) o E d o o 0 o �! �, w � z - o Z C4 - 'z 0 cn o O 00 —- O N 1O d- • �, o 44 a CY .M N co N O ° N .r O _ , ..., ,-,-, N M .--,,,,, a ...... ,_ M 4 ao V a n°z .o d 0 a c > v O >-t t ' U p o o O Ch 0 O O� a r a) O1 O Q� '-' O� ' Q a 1� M C17 M C 3 Fa M . M 3 4) W I- p� M M aV C M M F �� M W F-� - ;-°, ,4 w a ° 4., r° 4., way 4 W 1- NW O ,.• N M cc Pennsylvania and Meridian Ave REPORT 201526 RETAIL RENT COMPS ADJ1'STNIENT GRID Rent 1 2 3 4 0/SF $55 $75 $60 $48 Location 0% -30% -30% -30% Building Quality -10% 0% 0% 7% Condition -5% 5% 0% 10% Size 0% 0% 0% 0% Others 0% 0% 0% 0% Overall Adjustment -15% -25% -30% -13% Adjusted Rent $47 $56 $42 $42 Average All Comps: $47 Average Best Comp 1: $47 Chosen Retail Rent($/SF)for Subject I $45 NNN LIE END Comparison Adjustm Similar to Subject = the comp does not need adjustment Inferior to Subject + the comp needs a plus adjustment Superior to Subject - the comp needs a negative adjustment Base on comparison with the market data we concluded that the market rent for the subject retail space (1,291 SF) to be $45 per square foot rentable net per year for vacant space. We have concluded that the market rent would typically span a 5-year lease. The total rent for the subject retail space is $58,095 (1,291 SF x$45/SF). Operating Expenses The annual operating expenses of the subject property were projected in this analysis based on similar properties. RE TAIL OPERATING EXPENSES STATEMEN1 A ril 2015 EXPENSES: Per SF FIXED EXPENSES Property Taxes $3.62 Insurance $1.15 TOTAL FIXED EXPENSES: $4.77 VARIABLE EXPENSES Administrative&General $1.53 Repairs/Maintenance $0.79 Utilities $1.50 Cleaning $0.31 Others $5.96 Reserves $0.15 $10.24 TOTAL,EXPENSES $15 01 BLAZEJACK& COMPANY 10 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 Our estimated total stabilized Operating Expenses for the stabilized year is $15.01 per square foot of rentable area. CONCLUSION Market Retail Rent is based on a triple net lease basis, where the tenant pays all expenses, including utilities,water, electricity,common areas,cleaning,taxes,and insurance. The market rent for the subject located at 1701 Meridian Avenue, Unit 3, in Miami Beach as of April 30, 2015, is $45 per square foot of rentable area net. Operating expenses are $15.01/per square foot of rentable area. Pro pert∎ kcldretis Market Type Total Ope rating Rent of Rent Expenses Retail 1701 Meridian Ave. $45 NNN $15.01 BLAZEJACK& COMPANY 11 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 1661 Penns lvania Ave. i.- ..*° -,__Offliro.i , 1114111MR s ,' -::-., . 14 i f , , - 1 • ... d ,.... - 1.In -.ik f: " _ t 1 la , ,• - . • •-- .N. ir ,- • 'IA . [. . IP.• ' r. '. is _IT -* • ■irlilIPIIMI.. Pill , - lyi 41 ' I. 1 I,. , , ..k r .' 1r- 3,- eler- - .4.14 I " ''''..:1.----1- . .,.,, - 1-„Ti H SALT ."" ---•.e..-41.A,,,,,, — ... i. . k I : 14 ----- ..--I'F • • 1. .; '----- ltdir.:ii, ,. ... : ...Jr...., , i. ,-, . -J1- 11,, - r k -rik' - .1.......,•,,- ,x! ,.....i 4 - . . ; • 11,V ' , , , •- '" i .' 4...Va._ :i4bwir..- - .11-it-1;777 L N t . _ 4,, . 0 - — N LINCOLN Lk ''' i _._ :mi. Ner----- ,!... _ 1. ,,,.. ,-...7, . . .t. 1 ILF.____ =kitio),i11111101.1,i ' R 6 r`'' LINCOLN R iii , 6ii,... • ,..1.;41-7 . ..„ ;.4 , '..;•,,....... 'tnfl, - ...... 1111PALINCOLliftD fil , , kLINCOLN .. -r.„,,- -- - " rAillifihdlilL ilt& ri ......______ lc) -ri..7.....iz.1.1 ,• .11 i ...• 1, td . 1 , 1 , 1 . 1 , 1 , 11k -kLc't ...„... :N $ -- .'1•1.7-7?}4t 1 l -6-7-4 _,,,,,,,-, -•.„.„„.„..• ,-•:,, \ \,, . —--- ,..._,. >.:i.).7-.L..: 9 v. .....-.-• • ,,, \,.. ■-. g g :.v., ,....., L 4 1% \ EINE4Caenn ‘,ssi ,..,,.. ----\:----s.----,;:—\ 1,,4 \ ,.: j , i---1---r--- 27.-r 11 .\ '.. . . . - ,,. 41 N \\ 1. ... ,_.._ .--,,, I x- "*". I•URANT SPACE' 7 8 t-, 0 ... ? ,..,:-..17:..:.I..... 10, 220.41" 7.--:7.4:'-: • ' ri.,Jr"` ' :74i •' - mai 7A-rimunall' imousillIN -,• , •i -,.14.. j . I , ,. • 1 t'l, 1 01P ,.•:..•;•,::,....•, ,:...r 17*..::.::...,i:,. 1.4c::::,::..r..-rr-I T1-:-...:.;........,1:-•,.. r-rp.7,,i,..;:•... ,----•-• • • .--.•- ,...,. .,........:::::.;.::-.•, 1 i.••......:i...;,:p I f4.,.....17:-..z:.y!1 :■Cl...1..'-vii ..' - '''--. ' . ,.r.•4..2:-,1" . RETAIL SPACE SITE PLAN SCALE 3/64w:1'OH -esiERAlcia„-gi3:17,`• .11.-g;,'0==;),?,::,,':-.. ,:::.,'-f!--,',ATV-T.I.,A,,,;$'''P:i4"--4:e,-;-2.'::":,':'2,!,... '',.."') ',..t2,,',C:i ?Or,n.„,:.,'-'7--"c'---,-,::;;.'vr:,.5W,?',z,-...f,,--;',-:",,--,--,,, t.ti,.'.,,:-.--c: , :--,,...,•:.,,,.-- -. --. . ---,'„-‘:,,-,,ii , ,,:,,,,„-_-., ,„;,,,-...,-;,,., . ' --....,:..„,.„,;.,...,.,,.... . ....... _c, ■■,...-. ..... iiiiigionag7,7gagog,iiigolatogagiclogiouloonglial! 0:: : _ — RETAIL SPACE WEST ELEVATION ..............—.....--............................--........ SCALE 3/84":l'0" BLAZEJACK& COMPANY 12 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 The restaurant is located at the east side of Pennsylvania Avenue, between 17th Street and N. Lincoln Lane. The address is 1661 Pennsylvania Ave. Subject property under analysis is the retail component of the `Pennsylvania Garage' building built in 2012. The building is a six-story structure with garage and retail spaces on the first floor. The subject is a restaurant to be used as first-class, high quality restaurant plus 2,230 SF of additional area to be used as storage. The space has high ceiling. Currently is leased to Penn 17 LLC for 9 years and 364 days. The lease was signed in October 31, 2011, and began 90 days after the certificate of occupancy was issued. The contract lease can be found in the Addenda. PROPERTY HISTORY The property is held in the name of City of Miami Beach according to the Public Records of Miami Dade County. We are not aware of any transfer of the property or purchase listing or offering within the past five years. LEGAL DESCRIPTION Short Legal Description PENNSYLVANIA GARAGE CONDO UNIT t UNOIV 3.7% INT IN COMMON ELEMENTS OFF REC 28084-4536 BLAZEJACK& COMPANY 13 MARKET RENT ANALYSIS Pennsylvania and Meridian Ave REPORT 201526 MARKET RENT ANALYSIS Restaurant Market We are estimating the market rent of the subject property, therefore a rent survey of the Miami Beach area was conducted. The basis for classification was location, design, and quality of construction,quality of interior finishes,age, and condition. The rent comparable selected give an indication of the level of rent that could be commanded by the subject if offered in the open market. The restaurant rent survey, a location map, and a table of adjustments can be found following. Photos of the comps are shown in the Addenda. All the restaurant rates in our survey are asking rates. Leasing agents interviewed in gathering rental data indicated that no concessions are provided although some terms are negotiable depending on tenant credit, the size of space and length of the lease. In most cases, the rates actually achieved in leases are near the asking r rates. 4. I/� �'• w �. ��— —ii: # . 1,, - 1:.:1-7,----$ i 1 _ _1r_� Crty Pal*,n _ r� L z + - - ( . ./„T.ST_ 191T T__ "' r _ ,Lloca t r 1.urFrd1 z ,, 1 a n I � Rstaurant Rent 4 .. L__3 Century Lane �p_•Restaurant Rent 1 11:I.1,1 I rl m —j t 5100/SF 1.� ! 1787 Purdy Ave. 1 I 6 i I;S60f SF I �-----=-� fli:1 � �7: o = �, ' I IL UT t 17TH ST -- -- Z-r— .N VENETIAN C9JVY_- p 'D 1 z E SUBJECT �_LINCQL N n I„ \ IStANt,AVE \ , o IIN'I� 1661PensylvaniaAve. a+ - s� uNcoL_tl = I I' J Iluncou tJ >� , � � /�-_= II ,D IL.� "ILA�T-- iy / — if l{ —- m j�1 16 �S�T f Restaurant Rent 2 I A !� f 1542 Washington Ave. , — IZ i ! I 5631$F D y _t— 14T�1P ill� l` = — y ID Z M -11 i 3 T � 14TH ST,.,,t;— Restar►aat Rest 3 I \ 14TH 5 O _.� }^ ." z 4,,,, 1234 rashiagtoa Ave. ,. Ili o , 56015E — l MONAD TER x . ' 46,-ii:-,-. J, y7 1 II , I » 11 11 1 f ■ '1 I m JI I 1 11 ,,'-= �, :IT i' i /�1 1 1 4- T- i� i, , I)i. '11 DELORME —_�_ rr Date use subject to Wens.. •DeLoe.DeLorme Street Atlas USA•2010. 0 aoo 1000 0080 mi www.debm e.com MN(6.3'W) Ma Zoom 13.6 Retail Map Comparable BLAZEJACK& COMPANY 14 MARKET RENT ANALYSIS W CO > N Q bA 0 O a -v �r ih — .- :0 cc ° o ° a w pq 6 " a. 4, o O -cam cs V 1 o-1. 3 � c . -o e _ a'' - ° � ' � �.� �. 3 .4 -tea � :� CO cr .A 0 o ciw - 00, `G a. o H �' b 9 i• ii 4°"' N c 0 4 a ° O„ U 0 3 d r� o a� ' ..° 3 �y P 3 a. 13 - _ RmQ .g am a 3 •.= 6 t . : 8 6 a • 0 ° 'b U �' ° °an c. lib G, i E 6 ..g . r." 2 • .8 1 .c4 '' 4 ra. . --) i • ▪ 8 `"' c ° ° Qg 0. QO O y i jJ 3 f .1 cr a., y O U N rI U z u, �' E c4 r, w > a0 _0 .g N 3 . ' co -ci I 4 U , w ti O O H 1 O O 0 Q 6 C 4 v�7� 4 o U = g E-1 R cl a) a, O =� 4, EA _O y d I:4 64 " N C, C. C. O v •-■ -- --, z N rr O O O O l� Z S 0 o Do 0 u) > C u' U } v v v U +�' �+ > .4 p,.„ U F- 0. G M v ~ g M 00 M M . N W • i 1,:l 'cl. w� V) o .-.1 x Pennsylvania and Meridian Ave REPORT 201526 RESTAI i RANT COMPS ADJ I ISTM ENT G RID Rent 1 2 3 4 $/SF $60 $83 $60 $100 Location 5% -15% -10% -10% Building Quality 10% 0% 0% 5% Condition 10% 0% 0% 5% Size 0% 0% 0% 0% Others 0% 0% 0% -10% Overall Adjustment 25% -15% -10% -10% Adjusted Rent $75 $71 $54 $90 Average All Comps:I $72 Chosen Retail Rent($/SF)for Subject I $70 NNN Comparison ,Adjustor Similar to Subject = Inferior to Subject + Su.-rior to Subject - Base on comparison with the market data we concluded that the market rent for the subject retail space (7,807 SF) to be $70 per square foot rentable net per year for vacant space. We have considered that the market rent includes a 5-year term rental lease. The total rent for the subject retail space is$546,490(7,807 SF x$70/SF). Operating Expenses The annual operating expenses of the subject property were projected in this analysis based on similar properties. RISTAI R.1\I (WI RA I I\(;EXPENSES ti I N.l I:\II:\I )ril 2015 EXPENSES: Per SF FIXED EXPENSES Property Taxes $4.02 Insurance $1.15 TOTAL FIXED EXPENSES: $5.17 VARIABLE EXPENSES Administrative&General $1.53 Repairs/Maintenance $0.79 Utilities $1.66 Cleaning $0.31 Others $5.96 Reserves $0.15 $10.40 TOTAL,F,XPF.NSES S15 57 Our estimated total stabilized Operating Expenses for the stabilized year is $15.57 per square foot of rentable area. As secondary data information, we have presented a table below with contract restaurant rents. BLAZEJACK& COMPANY 16 MARKET RENT ANALYSIS d cD Q - = o e e e e e e Ci a `n O o o IX Cd vi vi t i vi fn .L O .0 w w 'a Ce w 8 8 8888 ¢ ¢ ¢ ¢ ¢ cu U 6A 4 6A 6A 6A z z z z z. RI -C ea cu > a 0 „ .1 V) M 42. z z co z 5 C 6A z w a C. _ w°' z' z z z z zzz z z z z z z a F A vs A w U g1 1 Q ti Na a� a, o, N ees e'.4 N ^ ' SR ¢{ `� O O i7 C A N Q g . N 0A op op on 00 �. N c �, a .5.5.5 .5 \ \ y U �, CO a 0 a a a a fn fn \ > •5 CC F., 5 2 fi Ned o `n a°oi `n a°Oi a°pi ab°i a°qi c�'2 a ai = Ci '>,•'•' N 8 N [A N U U p N t0 cs.90 Z a g. w w y V V c ^' O .4 O co tV fV iU, aki F-' 0o y > > CO O a G U 6 -p I-V n . ?? ¢ v - .2 8 fn O O" F Z .5 . ifnn= 0.4 6.. 00 v Op Cp N S O S O C a O`n 6A M 69 62 U U V> 6A M M U� V CL rr__I �p p 88 LLB C0C N co 00 M 00 8 000 — 00 a fqf� OHO J C `n O, O, co 00 N .O•-.•`n ,D et N `n M L `� f.- 00 ,..o-en" 9 C■ cd O. i7 _ vii O> aq 4 1 >, A CC�777 N ~ iG C O To' eat TF, N NA'y 3 2 w 0 a ca x y a y $ IIIJJJ �+ Rl C� U y F-` Q F u o f-�w_cc��"Fes- x C� y > * 0 3 ce °N' ao II.- �� .4 O U - N - 8 a U I' U [� �N o0 `/1 [� fn Q A ct n`n et M o0 Q a cr, ,� �N M O Q '^ elA es = I .4 a O �+¢ a Q c"' .1 Q K2 VV C p U r. = x C O y Z '5 .0 r`L'i a Q w N M v r- 00 O, W I- 4 In CC w Y Pennsylvania and Meridian Ave REPORT 201526 CONCLUSION Market Retail Rent is based on a triple net lease basis, where the tenant pays all expenses, including utilities,water,electricity,common areas, cleaning,taxes,and insurance. The market rent for the subject located at 1661 Pennsylvania Avenue in Miami Beach as of April 30,2015 is $70 per square foot of rentable area net. The market rent is based on a 7,807 SF of rentable area. Operating expenses are $15.57/per square foot of rentable area. Property kcldre�s Market Type Total Ope rating Rent of Rent Expenses Restaurant 1661 Pennsylvania Ave. $70 NNN $15.57 BLAZEJACK& COMPANY 18 MARKET RENT ANALYSIS ADDENDA t - ' _.-':,...';',''. . .r...;.;''.1,,....-.7. '•• • • • • • , • Exhibit A • Subject Photographs • . 1701 Meridian Avenue.-Retail. 11 , e; 0: lb fill#111 FrIPOP liticl RR% 11im RINI RI ,, !Pm -_e4eg ��.. -� - 'i/ F 1 .. Ll -s i I .1.7.. --. f E 4.to IL -1 Op i i r ',„ ..": . . _ ,,,,f iff 47 , 0 13) .1 Al , .1,, ,,,, i . _, .. 1 - �.. t ,.............. 4. \i r I 1 r y .;1. .4 I gifs . , ,. . 14 1 1 , i i • F t • - ) 1 %). x i _. _,, -*I. i I ..,.„ „., _ sr .iiiiiiiiii__ * : . 1661 Pennsylvania Ave.- Restaurant a �t _ sWS s' ',:;' . • , Olit- ..- - .,'-' , ..0,6p.011 Or * r1,,; • f .: . • • 1 - •• r .�� ..>• • '�. , :.tow i • • r, . Mil • s),1414 •- .. 1. v -„ 1 410 fagiatiii,i -' I (11, •1111111 siNelikanMELO!! 7 a • DA i 2'-i i 015 4r , E 'ii.414. CI i , try _ . .,:in ,_ W o' or L' foe)it _ L4`;2`'+J\4201 5 1. • L: Exhibit B Comparable Rent Photographs RETAIL PHOTOS I . � ` , t i`, 1 III 1 i i 41•114471 --fa — . .�rJYrYI� Retail 1 —The Lincoln 1691 Michigan Avenue t+ t ,i- it IL 1 •vit Ael i ,1:i t '146 it aI AI '011111 . Retail 2 1616 Washington Ave. (L ■111111111111111.1.1 r wirasor • Me Retail 3 1601 Washington a gton Ave. zakil I IR; f ' WORLD FAMOUS SOUTH BEACH 3,500 SQ FT AVAILABLE Retail 4 1841 Washington Ave. RESTAURANT PHOTOS .. . . . ... __ ., ,:- ..... . ,.... , ... .:..-... . eimmiti '10:1■.'; ' .11 ''''' .1, '''' . .'. • • .; -Nt• . . . ' - '.,• __ 'i. , '''' ..-‘.:,.. ..,., ••1`...-•. '.. .::.'...,* -,t ik :4' •!,,.- -71 ;,- • ' ,4.,, ,■ . ..., I., • ,.;•.,4 i 0 .1 . • 4.- .,;-.. '':, .. ' ......... "...4 .4,).1.. . .4,-:....' ..••11111 . . . .•' - 1 • ' L ' 1 . I■ I 7 * ' ...."•. ----...... 'VP . . . - 1 ... ., * ..... .........-- .... .... _ ... . _ ••••• _ ,.. - ;Le' .s...... 11 Ir; i . - 4 , r, . ., r',- I . ••N .-'.**' . ..A.' - ' .. • ' r ' , : . ._ ..fl , ir,.,,. .. -'-4.... 4.,;••1. . ,' - '. • , S..'fr.•' , . -,.r Restaurant 1 1787 Purd Ave. ._. . ... .. do„,._ ...,-,..„ ,„,, '411111■74 i ' , IF"- , . ,--, .r. . • •, '4.07.11,L 7 -1:_lit ----'--4.----17-ft■''''011bile --- r ,,-" .., -.'"--;-JP-.-:- _, .-10E-,1111•":,-;iiiiir-.:,. , ...... ......... vs., c ,.....____ __.__ , __ \-- - -...,_ 1#• .;• . ---".7.i - . *Lil'..:"•'•• 0' -...._ .,- - -. . • -- 4....a. ...1.11C11111■, II 0 opt. .. .. 1 ' ' "VIIIII Era ' :: . . ., 4,117151: . . IN 1 . i ......... ------- ""b7.," v : . --.....„___--•.......i.;;....•S',ii.'1';•,,,, - I ji ---.:_- .--if i 'I gill 11 ' , .,st• ; -. . Restaurant 1 1787 Purdy Ave. 1 , )„ C. ,' ‘ MO ,\ � - -- �' . ''ILI all . 1111 trli .... x•$ A Y.��rw 1 IN IMMO Restaurant 2 1542 Washington Ave Fes. II I 1111.1 Retail 3 1234 Washington Ave. 4 -- j it i 0 DO I I , 0:'00 le a 4 'r' nrlmrrmp!-- 4 Iit _ Retail 3 1234 Washin: on Ave. ela 0 .. - _.. _ lb; ..,,a4. . i lig r 1 Retail 4 40 Island Avenue Exhibit B • • • • • • • • • • • • • 11111 411/111111■ 41112111.11‘. UMW 1915•2015— AA AM BEACH City of Miami Beach,1700 Convention Center Drive,Miami Beach FL.33134,www.rnianribeachfLgov TOURISM,CULTURE AND ECONOMIC DEVELOPMENT DEPARTMENT Office of Real Estate Tel:305-673-7193/Fax:786-394-4539 June 19, 2015 Mr. Gabriel Castillo Sent Via E-mail:acastillo@unikwax.com SB Waxing, Inc. 771 17th Street Miami Beach, Florida 33139 Re: Non-Binding Letter of Intent 771 17th Street Miami Beach, Florida 33139 Dear Mr. Castillo: This Non-Binding Letter of Intent shall set forth the basic terms and conditions under which the City of Miami Beach ("City") is willing to enter into a lease agreement with SB Waxing, Inc. ("Tenant"). Landlord: City of Miami Beach Tenant: SB Waxing, Inc. d/b/a Uni.K Wax Premises: 1701 Meridian Avenue, Unit 3(a/k/a 771 17th Street) Miami Beach, Florida 33139 Size: Approximately, 1,291 rentable square feet Initial Term: Five(5)years commencing August 1, 2015 and ending July 31, 2020. Renewal Option: So long as Tenant has never been in an uncured default of the Lease, upon providing Landlord written notice six (6) months prior to the expiration of the Initial Lease Term, Tenant shall have one (1) renewal option, for a period of four(4) years and 364 days, at the then prevailing fair market rent. Termination Option: In the event the City determines, in its sole and absolute discretion, to demolish, renovate or repurpose the 1701 Meridian Avenue building, the City shall have the right to terminate the lease at any time throughout the Initial Term, or renewal term, upon providing one hundred eighty days (180) prior written notice to Tenant. Base Rental Rate: $42.00 Triple Net, per rentable square foot, plus applicable sales tax. Increases: The Base Rental Rate shall be increased by three percent(3%)annually. Lease Basis: Triple Net - Tenant shall pay its proportionate share of the costs of real estate taxes, insurance and maintenance expenses. Letter of Intent- SB Waxing, Inc. 771 17th Street June 19, 2015 Page 2 of 2 Security Deposit: Two (2) month's gross rent Construction Allowance: Tenant shall accept the Premises in "as-is" condition. Use: Hair removal facility, including waxing and retail sales of related items; facials and retail sales of related items. Agency Disclosure: Tenant represents that it is not represented by a real estate broker regarding this transactions and no commission shall be due regarding this transaction. Conditions: The terms and conditions of this Letter of Intent are subject to approval by the City of Miami Beach Commission. This Letter of Intent is non- binding to either party, and may be modified or withdrawn by the City, without notice, at any time. Only a fully executed and delivered lease agreement, which shall be negotiated in good faith by both parties, shall serve as a binding agreement in this regard. Please let me know if I can provide you with any additional information. I may be reached at (305) 673-7193. Sinc rely, ck/efres;j4; Mark M. Milisits, RPA Asset Manager Agreed to and Accepted by: Tenant: SB Waxing, Inc. , Sign: _._,„„00101,11L Print: ( t 7! c Title: S `ee " y -- L % -4 o Date: .71-°r i`5- F:IRHCD\$ALL\ECON\$ALL\ASSET1777-17th Street\SB Waxing\SB Waxing Proposal(6-19-15).docx LEASE AGREEMENT THIS LEASE AGREEMENT (hereinafter referred to as "lease Agreement" or "Lease"), made this day of , 2015, by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, (hereinafter referred to as "City" or "Landlord"), and SB WAXING, INC. (d/b/a Uni.K Wax Center), a Florida corporation, (hereinafter referred to as "Tenant"). 1. Demised Premises. The City, in consideration of the rentals hereinafter-;reserved to be paid and of the covenants, conditions and agreements to be.kept=and performed by the Tenant, hereby leases, lets and demises to the TeriantK and Tenant hereby leases and hires from the City, those certain premises hereinafter referred to as the "Demised Premises" and more fully described as foll . • •:.V.eT•5... {}4+,�r J '2} 1,291 square feet of City-owned property (the "Building"), located at J`fr�'`� 1701 Meridian Avenue, Unit 3, (a.k.a. 771 17 th Street), Miami Beach, Florida, 33139, and as - morespecifically delineated in "Exhibit 1", attache'Sh'ereto and incorporated herein. lh?y 1y� 2. Term. rg a x 2.1 Tenant shall lbe.entitled toohave andYtot hold the_=Demised Premises for an � � � � �` St 2015 initial) m of five L(5) years, commencing on the 1st day of August, (the Cmencermnt DateViarkl ending'on the 31st day of July, 2020. For purposes of this Lease Agreement, and including, without limitation, :Subsection 2 2 herein, a "contra year" shall be defined as that certain period com men ing on the 1St day of August, and ending on the 31st day �! of July "t K z , .S�•� r. l.4 YSSY 2.2 - Provided Tenant is in.„good standing and free from default(s) under fft -I:Section 18 hereof, and upon written notice from Tenant, which notice shall besubmitted to the City Manager no later than one hundred and eighty (180) {da s priOito the expiration of the initial term, this Lease may be 9 y extended:forone` (1) additional four (4) year and three hundred sixty four (364) day renewal term. Said extension, if applicable shall be memorializedr in writing and signed by the parties hereto (with the City hereby designating the City Manager as the individual authorized to execute such extensions on its behalf). 2.3 In the event the City determines, in its sole and absolute discretion, to demolish, renovate or repurpose the 1701 Meridian Avenue building, the City, through its City Manager, shall have the right to terminate this Lease at any time throughout the Initial Term, or renewal term, upon providing one hundred eighty days (180) prior written notice to Tenant. Upon termination, the City shall be fully discharged from any and all liabilities, • duties, and terms arising out of, or by virtue of, this Lease. EXHIBIT 1 fk Rent. 3.1 Base Rent: Base Rent for the Demised Premises shall begin to accrue on the Commencement Date. 3.1.1 Throughout the Term herein, the Base Rent for the Demised Premises shall be Fifty Four Thousand Two Hundred Twenty Two and 00/100 Dollars ($54,222.00) per year, payable in monthly installments of Four Thousand Five Hundred Eighteen and 50/100 Dollars ($4,518.50), commencing _on, the Commencement Date C'f. and, thereafter, on each first day of>sRubsequent months. 3.1.2 Concurrent with the payment theYBase Rent, Tenant shall also x__ include any and all additional sums foriall applicable sales and use tax, now or hereafter prescribed by Federal, State or local law. 3.1.3 The Base Rent amount pursuant to this"-Section 3.1 shall be increased annually, on the of the Commencement Date t���: .girt �:��:�;� of the Lease,_in increments=of:three ({3%) percent perizyear. nrik 3.2 Additional Rent: In addition ta the Base Rent,-as.set forth in_Section 3.1, Tenant shall also pay the following Additional Rent-Ws provided below: 3.2.1 Operating iEx enses =. or �. 3 Tenant shall pay Four=_Hundred Thirty and 20/100 Dollars ($430.20) per imonth,vfor its propionate share of "Operating Expenses" S which areidefined?as follows: r a '"'+ 14tV Az -Operating Expenses- shall mean the following costs and expenses' i and maintaining the Common siklk incur in°4.o erating repairing, g Facilities (as"Thereinafter defined) and shall include, without limitation; water service to the Building, sewer service to the <- Building trash removal from the Building, costs incurred for .gardening,Fand landscaping, repairing and maintaining elevator(s), painting,'janitorial services (except for areas within the Demised Premiss), lighting, cleanin g, striping,g, policing, removing garbage and other refuse and trash, removing ice and snow, repairing and maintaining sprinkler systems, water pipes, air-conditioning systems, temperature control systems, and security systems, fire alarm repair and maintenance and other equipment in the common areas and the exterior and structural portions of the Building, paving and repairing, patching and maintaining the parking areas and walkways, and cleaning adjacent areas, management fees and the City's employment expenses to employees furnishing and rendering any services to the common areas, together with an additional administration charge equal to fifteen percent (15%) of all other expenses included in the annual common area expenses, 2 provided by the City for the common or joint use and/or benefit of the occupants of the Building, their employees, agents, servants, customers and other invitees. "Common Facilities" shall mean all Building areas, spaces, equipment, as well as certain services, available for use by or for the benefit of Tenant and/or its employees, agents, servants, volunteers, customers, guests and/or invitees. Tenant agrees and understands that the costs incurred for Operating Expenses may increaseor decrease and, as such, Tenant's pro-rata share of OperatinfgExpenses shall increase or i.. decrease accordingly. 3.2.2 Property Taxes: °A The Property Tax Payment shall be payable by Tenant, in accordance with Section 11 herein. Tle 2014 Property Tax *sr Payment is Eight Thousand Nine Hundred Four and 97/100 Dollars ($8,904.97), payable 01-Monthly ,installments ofzrSeven Hundred Forty Two and 08/100 Dollars:($74 2,.:0'8). Vce; �. d r '�ti d 3.2.3 Insurance: tfsC( The Additional iRent`shall also include Tenant's pro-rata share toward estimatedzinsurance}zcosts incurred to insure the whole of the Building, payable in MOM* installments of Ninety Six and 79/100 Dollars ($96 79) gThis insurance, coverage is in addition to tinsurane required;: pursuant to Section 10, which shall be obtained atTenant s sole=expense and responsibility. 3.3 L -Saleses z C . r .. Concurrent. with"=t_he paymentv'of the Base Rent and Additional Rent as t1K�- - ? provide herein, Tenant shall also pay any and all sums for all applicable tax es without limitation, sales and use taxes and Property Taxes, imposed levied or assessed against the Demised Premises, or r 1t any other char or payment required by any governmental authority havingjurisdictig there over, even though the taxing statute or ordinance may purport toy°impose such tax against the City. mew 3.4 Enforcement:' Tenant agrees to pay the Base Rent, Additional Rent, and any other amounts as may be due and payable by Tenant under this Agreement, at the time and in the manner provided herein, and should said rents and/or other additional amounts due herein provided, at any time remain due and unpaid for a period of fifteen (15) days after the same shall become due, the City may exercise any or all options available to it hereunder, which options may be exercised concurrently or separately, or the City may pursue any other remedies enforced by law. 3 3. Location for Payments. All rents or other payments due hereunder shall be paid to the City at the following address: City of Miami Beach Revenue Manager 1700 Convention Center Drive, 3rd Floor Miami Beach, Florida 33139 or at such other address as the City may, from time to time, designate in writing. 5. Parking. Aar Tenant may request, from the City's Parking::Department, the use of no more than three (3) parking spaces, if availabl,ef.tat'-Municipal Parking Garage 2-G SAL-�•.� r�<.• located on 17th Street and Meridian Court: Rates .for said spaces are subject to change, and are currently Seventy Dollars ($70.00).per3 month, plus applicable sales and use tax per space. t-r 6. Security Deposit. a Upon execution of this Agreement Tenant:shall furnish the City rwith a Security Deposit, in the amount OVgleyen ThousandrFive Hundred Seventy Five and 14/100 Dollars ($11,575($11,575N4ilitaid Security Deposit shall serve to secure Tenant's performance in accordance-?with the provisions of this Agreement. In the event Tenant fails to perform in'�accordance with°°said provisions, the City may retain said Security sD`eposit, as'well as..puraue any and all other legal remedies provided herein.,or as may be provided by-applicable law. The parties agree:and acknowledge that the foregoing condition is intended to be a condition subsequent to 'theCity's approval of this Agreement. Accordingly, in thewevent=that Tenant does not-i'satisfy the aforestated, then the City Manager or his-designee may immediately, wittiOat further demand or notice, terminate this Agreement without being'prejudiced as to any remedies which may be available to himfor breach ofcontract 7. Use and=-Possession of Demised Premises. 7.1 The De"misedPremises shall be used by the Tenant solely for the purposes) of operating a hair removal facility, including waxing and retail sale of related items, facials and retail sales of related items. Said Premises shall be open for operation a minimum of five (5) days a week, with normal hours of operation being as follows: Monday -Wednesday: 10:00 AM to 7:00 PM Thursday and Friday: 10:00 AM to 8:00 PM Saturday 10:00 AM to 6:00 PM Sunday 11:00 PM to 6:00 PM Tenant shall not otherwise modify the days or hours of operation without the prior written approval of the City Manager. Nothing herein contained 4 shall be construed to authorize hours contrary to the laws governing such operations. 7.2 It is understood and agreed that the Demised Premises shall be used by the Tenant during the Term of this Agreement only for the above purpose(s)/use(s), and for no other purpose(s) and/or use(s) whatsoever. Tenant will not make or permit any use of the Demised Premises that, directly or indirectly, is forbidden by law, ordinance or government regulation, or that may be dangerous to life, limb or property. Tenant may not commit (nor permit) waste on the Demised Premises; nor permit the use of the Demised Premises for any illegal purposes; nor commit a nuisance on the Demised Premises. In theevent that the Tenant uses the Demised Premises (or otherwise allows the Demised Premises to be used) for any purpose(s) not expressly:perrnitted herein, or permits and/or allows any prohibited use(s) as provided herein;_then the City may declare this Agreement in default pursuant to Section .�-1a8 or, without notice to �=f. 2:�7 Tenant, restrain such improper:use by injunction ors_other legal action. 8. Improvements. 8.1 Tenant accepts they Demised Premises rn their present "AS IS" condition and may construct or.=;cause to be constructed, such interior and exterior improvements and maintenance to the Deni ed Premises, as reasonably necessary for it to carryon its permitted use(kss), as set forth in Section 7; provided, however, that7any plansrfortsuch improvements shall be first submit ed-to the'City Manager for=phis prior{written consent, which consent, ter: if granted at all,;_shall beathe City Manager's sole and absolute discretion Additionally, any and all approved improvements shall be made at aTenant's ~sole 'expense and responsibility. All permanent (fixed) im`<rovementsk to�the De s s iced Premises shall remain the roe of the -�;� :�rR P �H�;� � � � property rtY City upon terrnir ati on and/ors expiration of this Agreement. Upon on i iterminatioand/ore<praton of this Agreement, all personal property and non-permane tradefures may be removed by the Tenant from the -SDDeemised Premi s, provided that they can be (and are) removed without damage age to the Demised Premises. Tenant will permit no liens to attach to the'Demised Premises arising from, connected with, or related to the r�.. s.� .y. design: sand construction of any improvements. Moreover such construction shhall be accomplished through the use of licensed, reputable contractors who are acceptable to the City. Any and all permits and or P Y Y P licenses required for the installation of improvements shall be the sole cost and responsibility of Tenant. 8.2 Notwithstanding Subsection 8.1, upon termination and/or expiration of this Agreement, and at City's sole option and discretion, any or all alterations or additions made by Tenant to or in the Demised Premises shall, upon written demand by the City Manager, be promptly removed by Tenant, at its expense and responsibility, and Tenant further hereby agrees, in such event, to restore the Demised Premises to their original condition prior to the Commencement Date of this Agreement. 5 8.3 The above requirements for submission of plans and the use of specific contractors shall not apply to improvements (which term, for purposes of this Subsection 8.3 only, shall also include improvements as necessary for Tenant's maintenance and repair of the Demised Premises) which do not exceed Five Hundred Dollars ($500.00), provided that the work is not structural, and provided that it is permitted by applicable law. 9. City's Right of Entry. 9.1 The City Manager, and/or his authorized representatives, shall have the right to enter upon the Demised Premise, g5fall reasonable times for the .�tir. purpose of inspecting same; preventingkwaste, making such repairs as the City may consider necessary; and for-:tte=purpose of preventing fire, theft or vandalism. The City agrees that, wheneverreasonably possible, it shall use reasonable efforts to providelnotice (whether.written or verbal), unless the need to enter the Demised Premises is an eme gency, as deemed by the City Manager, in his sole discretion, which, if not immediately rahx }? £ addressed could cause propert=y__damage loss of life for limb, or other injury to persons. Nothing herein==shall ;imply any duty on_-the part of the City to do any wor=k that under any. provisions of this Agreement the Tenant may be requ;id Ito erform, and;_the performance thereof by the City shall not constitute a waivers of the Tenants default. rt;c; 4014 9.2 If the Tenant shall not be':p'ersonally�present toopen and permit entry into the Demised Premises at any time -for any reason, and any entry thereon shall besn i ecessa r permissible, the City Manager, and/or his authorized representatives, may enter the%Demised Premises by master key, or may �^.., forcibly enters the,Demised Premises without rendering the City or such agents liable therefore. 7- age • 9.3 Tenant shall_-furnishthe City with duplicate keys to all locks including =-exterior andinterior doors prior to (but no later than by) the ` :Co .mmencementDate 'of=this Agreement. Tenant shall not change the locks to the Demised Premises without the prior written consent of the City Mater, and the event such consent is given, Tenant shall furnish the City with dplicate keys to said locks in advance of their installation. 10. Tenant's Insurance: 10.1 Tenant shall, at its sole expense and responsibility, comply with all insurance requirements of the City. It is agreed by the parties that Tenant shall not occupy the Demised Premises until proof of the following insurance coverages have been reviewed and approved by the City's Risk Manager: 10.1.1 Comprehensive General Liability, in the minimum amount of One Million Dollars ($1,000,000) (subject to adjustment for inflation) per occurrence for bodily injury and property damage. The City of 6 Miami Beach must be named as an additional insured on this policy. 10.1.2 Workers Compensation and Employers Liability coverage in accordance with Florida statutory requirements. 10.1.3 All-Risk property and casualty insurance, written at a minimum of eighty (80%) percent of replacement cost value and with replacement cost endorsement, covering all leasehold improvements installed in the Demised Premises by or on behalf of Tenant and including without limitation all of Tenant's personal property in the Demised Premise (ncluding, without limitation, inventory, trade fixtures, floor-; coverings, furniture, and other property removable by Tenant�=-under the provisions of this Agreement). :f= • 10.2 Proof of these coverages; Oust be providedf=by submitting original certificates of insurance to the City's Risk Managers and Asset Manager respectively. All policies must rovide thirty (30) days written notice of cancellation to both the City's Risk;Manager and Asset=:_Manager (to be submitted to the addresses set forth in :Section 27 hereof). All insurance policies shall be issued-bye"companies'authorized to do business under the -fib laws of the State of Florida and ..11must havela rating of B+:VI or better per A.M. Best's Key Rating'Guide, lateSteditiorr,land certificates are subject to the approval of the City'sRisk Manager -• ''ry ,'.. '+.iy 11. Property Taxes:and Assessments. =g e. For the purposes of this,Section and other provisions of this Agreement: 11.1 The term "Property Taxes' shall mean (i) real estate taxes, assessments, and special assesments of-,,any kind which may be imposed upon the lit; Demised Premises and (ii) any expenses incurred by the City in obtaining =sa reductionany such taxes or assessments. 11.2 The term Property Tax Year" shall mean the period of twelve (12) calendar montlsibeginning on January 1st of each year 11.3 Tenant shall pay, as Additional Rent pursuant to Section 3.2, for such Property Tax•Year an amount ("Property Tax Payment") equal to Tenant's pro-rata share of Property Taxes (if any) for such Property Tax Year; said pro-rata share to be determined by the City based upon the ratio of the Demised Premises to the tax lot. If a Property Tax Year ends after the expiration or termination of the term of this Agreement, the Property Tax Payment therefore shall be prorated to correspond to that portion of such Property Tax Year occurring within the term of this Agreement. The Property Tax Payment shall be payable by Tenant immediately upon receipt of notice from the City. A copy of the tax bill(s) or other evidence of such taxes issued by the taxing authorities, together with the City's computation of the Property Tax Payment, will be made available to 7 Tenant once received from the taxing authorities, if requested by Tenant. Tenant shall pay any difference in the amount between the estimated property taxes and the actual property taxes to the City immediately, upon receipt of request for said payment from the City. 12. Assignment and Subletting. Tenant shall not have the right to assign or sublet the Demised Premises, in whole or in part, without the prior written consent of the City Manager, which consent, if granted at all, shall be at the City Manager's sole and absolute discretion. Such written consent is not a matter of right and the City is not obligated to give such consent. If granted as provided herein, the making of any assignment or sublease will not release Tenant,frorn any of its obligations under this Agreement. =i_== .f K:[G:r: n`j1 13. Operation, Maintenance and Repair. 13.1 Tenant shall be solely responsible for the operation, maintenance and repair of the Demised Premiss Tenant shall, atits sole expense and responsibility, maintain the Demised Premises, and .all fixtures and appurtenances therein, and shall}m ake :,all'repairs thereto,.as and when 1 L., needed, to presejthem in good working order and condition. Tenant shall be responsible-,for alll i erior wallsi;and the interior and exterior of all windows and doors, aswell as".immediater�replacement of any and all plate p•LLz• ..,e M�t. glass or other glass in the Demised_ Premises:which may become broken, other 7 ?,> �t� using glass4of the same or better.quality r 'Mr- ?spy "* r The City,:,shall be res onsible for the maintenance of the roof, the exterior L 9 of the Bu ldin the strructural electrical and plumbing (other than plumbing ..,. P 9 ( p 9 L • ;3 surrounding anysink(sf) and/or toilets) including such sink(s) and toilet(s) ti f•�ti x_ r L r sj'�d.: u 1 ° {fixture(s) within'the Demised Premises the common areas and the _,ia : chilled'Water supply system The City shall maintain and/or repair those r items that .itis responsible for, so as to keep same in proper working : condition. -reliant agrees sand understands, that if the City provides a separate air- conioning unit for the Demised Premises, the City, at its sole discretion, may require{Fthat Tenant obtain, at any time during the Term of this Agreement_ and continuously maintain in good standing, at Tenant's expense, throughout the Term of this Agreement, a maintenance and repair contract, approved by the City, with a service company previously approved in writing by the City, providing for the preventative maintenance and repair of all heating/ventilation/air-conditioning (HVAC) equipment servicing the Demised Premises. In the event that the City notifies Tenant that it will require Tenant to contract for said maintenance and repair services, Tenant shall provide to the City, in writing, within ten (10) business days, the name(s) and telephone number(s) of service company(ies) for the City's review and approval. Tenant shall provide a copy of a current, enforceable and fully executed maintenance and repair contract, no later than ten (10) business days after receipt of the City's 8 approval of the service company, as proof of Tenant's compliance with this provision. If the City provides a separate air-conditioning unit for the Demised Premises, as provided herein, Tenant may request that the City inspect same to ensure that it is in proper working order. If the unit is not in proper working order, the City shall, at its sole discretion, repair or replace the unit. 13.2 All damage or injury of any kind to the Demised Premises, and including without limitation its fixtures, glass, appurtenances, and equipment (if any), or to the building fixtures, glass, appurtenances, and equipment, if any, except damage caused by the gross negligence and/or willful misconduct of the City, shall be the sole=obligation of Tenant, and shall be repaired, restored or replaced promptly by *ant, at its sole expense and to the satisfaction of the City. ? 13.3 All of the aforesaid repairs �estorations and replacements shall be in quality and class equal to or better than the original work or installations and shall be done in.good and workmanlike-Manner. y: d ? F ,x, -tip 13.4 If Tenant fails to make L or such, repairs :restorations or replacements, the same may be made 6y the Ci-,. at the expense ense of Tenant and all sums spent and expenses incurred bythe City shalt be collectable by the City and shallrbe paid by Tenant within,three:(3) days after submittal of a bill or 41.statement therefore. , _ { Ver 13.5 It shall beTenanq sole obligation and responsibility to insure that any vfk renovations repairs and/or improvements made by Tenant to the Demised SrF'�rr f �:�r_. orb>ti with all a ,� ---Premises comply-� pp.icable building codes and life safety codes of -, governimental authorities having::jurisdiction. y.y2 13.6 _Tenant Responsibilities. for Utilities (not included within Operating Expenses). ; =As naann tt is solely responsible for, and shall promptly pay when due, all charges and impact fees for any and all utilities for the Demised Premises NOT included as=an Operating Expense (pursuant to Subsection 3.2.1). In addition to other rights and remedies hereinafter reserved to the City, upon the failure of Tenant to pay for such utility services (as contemplated in this Subsection 13.6) when due, the City may elect, at its sole discretion, to pay same, whereby Tenant agrees to promptly reimburse the City upon demand. In no event, however, shall the City be liable, whether to Tenant or to third parties, for an interruption or failure in the supply of any utilities or services to the Demised Premises. 9 13.7 TENANT HEREBY ACKNOWLEDGES AND AGREES THAT THE DEMISED PREMISES ARE BEING LEASED IN THEIR PRESENT "AS IS" CONDITION. 14. Governmental Regulations. Tenant covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State, Miami-Dade County, and City governments, and any and all of their departments and bureaus applicable to the Demised Premises, and shall also comply with and fulfill all rules, orders, and regulations for the prevention of fire, all at ::Tenant's own expense and responsibility. Tenant shall pay all cost, expenses°==-claims, fines, penalties, and damages that may be imposed because of the:failure of Tenant to comply with this Section, and shall indemnify and holds=h-armless the City from all liability arising from each non-compliance. 15.Liens. ` Tenant will not permit any mechanics, laborers, or materialman's liens to stand against the Demised Premises or improvements::for any labor or materials to Tenant or claimed to have been furnished to Tenant's agentscontractors, or sub-tenants, in connection,with work of any character performed or claimed to have performed on said Premises, or improvements by or at the direction or sufferance of the Tenant; provided however, Tenant shall have the right to contest the validity or amountof anyhs. lien orclaimed lien. In the event of such contest, sTenant. shall give the City. Y reasonable security as may be demanded by the City-to insure a meat thereof and prevent sale, foreclosure, or forfeiture of the Premises or improvements by reasons of such non-payment. sfiiy� Such security'need not exceed one an-d one half (1%) times the amount of such lien or such clai.nlek_lienIta. curitit.shall be posted by Tenant within ten (10) { :s. 4 or Tenant may "bond off' the lien according written.notice,.from the C-ity, y g t"o statutory procedures:$Tenant will immediately pay any judgment rendered with allproper costs and cha:rg and shall have such lien released or judgment satisfied at Tenant's_own expense. 16. Intentionally F Omitted. 17. Condemnation. •f~ 17.1 If at any time during the Term of this Agreement (including any renewal term hereunder) all or any part or portion of the Demised Premises is taken, appropriated, or condemned by reason of Eminent Domain proceedings, then this Agreement shall be terminated as of the date of such taking, and shall thereafter be completely null and void, and neither of the parties hereto shall thereafter have any rights against the other by reason of this Agreement or anything contained therein, except that any rent prepaid beyond the date of such taking shall be prorated to such date, and Tenant shall pay any and all rents, additional rents, utility charges, and/or other costs for which it is liable under the terms of this Agreement, up to the date of such taking. 10 Except as hereunder provided, Tenant shall not be entitled to participate in the proceeds of any award made to the City in any such Eminent Domain proceeding, excepting, however, Tenant shall have the right to claim and recover from the condemning authority, but not from the City, such compensation as may be separately awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business by reasons of the condemnation and for or on account of any cost or loss which Tenant might incur in removing Tenant's furniture and fixtures. 18. Default. 18.1 Default by Tenant: At the City's option, any of the following shall constitute an Event of Default under this Agreement: t} Y -% :. iYJ :t 18.1.1 The Base Rent, Additional:»Rent, or any;other amounts as may be due and payable by Tenant under tlis .Agreement, or any installment thereof, is Yn paid promptly whenland where due within fifteen (15) days of due date, and Tenant shall not.have cured such failure within_five (5) da s afterti `i O y receipt of written from the City specifying:such default, .,, �?':{t�. 3 Li fYC�. 18.1.2 The Demised Premisesshall be deserted, abandoned, or vacated; 18.1.3 Tenant-4shall fail to comply with any anjqmaterial term, provision, condition;ors covenant contained herein other than the payment of --rent and shall not cure:such failure within thirty (30) days after the . receipt of written noticeefrom the City specifying any such default; or suchlonger"perod of me acceptable to the City, at its sole t ew*- discretion v � :. 181.4 Receipt of 'notice of violation from any governmental authority having jurisdicct on-dealing with a law, code, regulation, ordinance or - the like -which remains uncured for a period of thirty (30) days from its issuance, or such longer period of time as may be acceptable ppv : writing by City 9 : .::,and a roved in writin b the Cit Manager, at his sole discretion; 18.1.5 A y :pe�tition is filed by or against Tenant under any section or chapter of the Bankruptcy Act, as amended, which remains pending for more than sixty (60) days, or any other proceedings now or hereafter authorized by the laws of the United States or of any state for the purpose of discharging or extending the time for payment of debts; 18.1.6 Tenant shall become insolvent; 18.1.7 Tenant shall make an assignment for benefit of creditors; 11 • 18.1.8 A receiver is appointed for Tenant by any court and shall not be dissolved within thirty (30) days thereafter; or 18.1.9 The leasehold interest is levied on under execution. 19. Rights on Default. 19.1 Rights on Default: In the event of any default by Tenant as provided herein, City shall have the option to do any of the following, in addition to and not in limitation of, any other remedy permitted by law or by this:Agreement; 19.1.1 Terminate this Agreement, in wh'icht;event Tenant shall immediately surrender the Demised Premisess=to=-the City, but if Tenant shall fail to do so the City may, withoutdfurther:notice, and without prejudice to any other remedy, the y'ha City mave for possession or arrearages in rent or sdamages for breachof contract, enter upon the Demised Premises}and expel or remove-Tenant and its effects in accordance with law, without being liable for prosecution or any 'Vxl-Y i •rrc- claim for damages therefore, .andTenant agrees}to-indemnify and hold harmless`zthe City for all:loss--and damage which the City may suffer by reasons*_such Agreement termination, whether through inability to re-let the Devised Premises, or otherwise. 19.1.2 Declare DeCraTeA.the entire amount.`A thee. Base:Rent and Additional Rent which would become due:and payable during the remainder of the term of this SAgreement1>to be due `and payable immediately, in which event;Tenant agrees to pay the same at once, together with 1�} f �Zl f all rents therefore.:due athe address of the City, as provided in the � “ F�Noticessection of this_ Agreement; provided, however, that such payment shall not constitute a penalty, forfeiture, or liquidated damage, butshall merely constitute payment in advance of the rents or the remainder of said term and such payment shall be to r -V considered, construed and taken to be a debt 4 . provable in bankruptcy or receivership. 19.1.3 `Enter ,theDemised Premises as the agent of Tenant, by force if necessary, without being liable to prosecution or any claim for damages therefore; remove Tenant's property there from; and re-let the Demised Premises, or portions thereof, for such terms and upon such conditions which the City deems, in its sole discretion, desirable, and to receive the rents therefore, and Tenant shall pay the City any deficiency that may arise by reason of such re-letting, on demand at any time and from time to time at the office of the City; and for the purpose of re-letting, the City may (i) make any repairs, changes, alterations or additions in or to said Demised Premises that may be necessary or convenient; (ii) pay all costs and expenses therefore from rents resulting from re-letting; and (iii) Tenant shall pay the City any deficiency as aforesaid. 12 19.1.4 Take possession of any personal property owned by Tenant on said Demised Premises and sell the same at public or private sale, and apply same to the payment of rent due, holding Tenant liable for the deficiency, if any. 19.1.5 It is expressly agreed and understood by and between the parties hereto that any installments of rent accruing under the provisions of this Agreement which shall not be paid when due shall bear interest at the maximum legal rate of interest per annum then prevailing in Florida from the date when the same was payable by the terms hereof, until the same shall be paid by Tenant. Any failure on the City's behalf to enforce this Section�=shall not constitute a waiver of '-�':}r this provision with respect to y future :accruals of past due rent. No interest will be charged fopayments made within the grace period, such grace period to be defined as withinfive (5) days from the due date. In addition, therewil be a late chargeof Fifty ($50.00) Dollars for any payments submitted after the grace period. 19.1.6 If Tenant shall default in making payment ofd f onies to any person or forany:purpose as`may be required hereunder, the City :yam may pay such expense but the6C;itvy shall not be obligated to do so. Tenant, upon the such__expense, shall be obligated to forthwith reimburse the-iCity for thearnount thereof. All sums of money:payable by_Tenant totthe City 'hereunder shall be deemed as`rent for ruse of the Demised Prem es and collectable by the City -from Tenantas rent, and shall be due from Tenant to the City on they first da'y; of the month:following the payment of the expense by the City, 04 AS9 1.7 1The� rights;of the City�u�nder this Agreement shall be cumulative but notestricti■eto those given by law and failure on the part of the City laexerCipromptly any rights given hereunder shall not t operate:;to.waive'or�to forfeit any of the said rights. 19.2 Default byCity: The faifure of._the City to perform any of the covenants, conditions and agreementsof°this Agreement which are to be performed by the City and the continuance of such failure for a period of thirty (30) days after notice thereof in writing from Tenant to the City (which notice shall specify the respects in which Tenant contends that the City failed to perform any such covenant, conditions and agreements) shall constitute a default by the City, unless such default is one which cannot be cured within thirty (30) days because of circumstances beyond the City's control, and the City within such thirty (30) day period shall have commenced and thereafter shall continue diligently to prosecute all actions necessary to cure such defaults. 13 However, in the event the City fails to perform within the initial thirty (30) day period provided above, and such failure to perform prevents Tenant from operating its business in a customary manner and causes an undue hardship for Tenant, then such failure to perform (regardless of circumstances beyond its control) as indicated above, shall constitute a default by the City. 19.3 Tenant's Rights on Default: If an event of the City's default shall occur, Tenant, to the fullest extent permitted by law, shall have the right to pursue any and all remedies available at law or in equity, including the._right to sue for and collect damages, including reasonable attorneyfees and costs, to terminate this Agreement; provided however, that Tenant expressly acknowledges and agrees that any recovery by Tenant;-shlls belimited to the amount set forth in Section 32 of this Agreement. ,_. 20. Indemnity Against Costs and Char es ''' 20.1 Tenant shall be liable to the`'City for allk:costs and Fcharges, expenses, reasonable attorneys fees, anddamages which may.;be incurred or sustained by the "C:ity tir by reasontiTenant s breach 'of any of the provisions of this Agrment. Any sumstdue the City under the provisions of this item shall constitute a lien•.against�theAinterest of the Tenant and the ter: Demised Premises and 3al^l of tenant's property situated thereon to the same extent and on the!:same_:2conditions as delinquent rent would r{os- v ti `r@ .• _ � � v{.ibfv-k� •6 constitute a lien:.on said premises and property 20.2 If Tenant shall ata_ny time begin default hereunder, and if the City shall deem it necessary tb engage an=attorney to enforce the City's rights and Tenant's obligations hereunder,*Tenant will reimburse the City for the 447-5- reasonable.:expenses incurred&thereby, including, but not limited to, court costs and4easonable:attorneys fees whether suit be brought or not and if .suit be brought,, then'enant shall be liable for expenses incurred at both the trial and appellate levels. 21. Indemnification Against_Claims. mss. 21.1 Tenant shall indemnify and save the City harmless from and against any and all claims or causes of action (whether groundless or otherwise) by or on behalf of any person, firm, or corporation, for personal injury or property damage occurring upon the Demised Premises or upon any other land or other facility or appurtenance used in connection with the Demised Premises, occasioned in whole or in part by any of the following: 21.1.1 An act or omission on the part of Tenant, or any employee, agent, contractor, invitee, guest, assignee, sub-tenant or subcontractor of Tenant; 14 21.1.2 Any misuse, neglect, or unlawful use of the Demised Premises by Tenant, or any employee, agent, contractor, invitee, guest, assignee, sub-tenant or subcontractor of Tenant; 21.1.3 Any breach, violation, or non-performance of any undertaking of Tenant under this Agreement; 21.1.4 Anything growing out of the use or occupancy of the Demised Premises by Tenant or anyone holding or claiming to hold through or under this Agreement. 21.2 Tenant agrees to pay all damages to the:Demised Premises and/or other facilities used in connection therewith,_c-a�used by Tenant or any employee, ;,arc{�iS;�. agent, contractor, guest, or invitee of:Ten-ant:• s fa 22. Signs and Advertising. Without the prior written consent of_t r;.e"City Manager, which consent, if given at all, shall be at the City Manager's soleand absolute discretion, Tenant shall not permit the painting and display of any signs,Vogues, letterg,or advertising material of any kind on or near the Demised Premises. All adational signage shall comply with signage standards established by the City and comply with all applicable building codes, and any,other m eipal, County, State and Federal laws. _ fit , 23. Effect of Conv� x lIl-;' The term "earl and/ol'aiLandlord' a � y � as°used in -the Agreement means only the owner for the time being of theYlknd and building containing the Demised Premises, so that:in the event of any' sale of said land and building, or in the event of a-.lease ofsaid building the Cityy shall be and hereby is entirely freed and relieverofallcovenants and'ObAationtof the City hereunder, and it shall be deemed and 4 'construed:without further agreement between the parties, or between the partes_and "the purchaser at such sale, or the lease of this building, that the purchasero.rTenant has assumed and agreed to carry out all covenants and obligations of theCity hereunder. 24. Damage tolhe. DemisedPremises. 24.1 If the Demisedr Premises shall be damaged by the elements or other casualty nofdue to Tenant's negligence, or by fire, but are not thereby rendered untenantable, as determined by the City Manager, in his sole discretion, in whole or in part, and such damage is covered by the City's insurance, if any, (hereinafter referred to as "such occurrence"), the City, shall, as soon as possible after such occurrence, utilize the insurance proceeds to cause such damage to be repaired and the Rent (Base Rent and Additional Rent) shall not be abated. If by reason of such occurrence, the Demised Premises shall be rendered untenantable, as determined by the City Manager, in his sole discretion, only in part, the City shall as soon as possible utilize the insurance proceeds to cause the damage to be repaired, and the Rent meanwhile shall be abated proportionately as to 15 the portion of the Demised Premises rendered untenantable; provided however, that the City shall promptly obtain a good faith estimate of the time required to render the Demised Premises tenantable and if such time exceeds sixty (60) days, either party shall have the option of canceling this Agreement. 24.2 If the Demised Premises shall be rendered wholly untenantable by reason of such occurrence, the City shall have the option, but not the obligation, in its sole discretion, to utilize the insurance proceeds to cause such damage to be repaired and the Rent meanwhile shall be abated. However, the City shall have the right, to be exercised.by notice in writing delivered to Tenant within sixty (60) days from and after said occurrence, to elect not to reconstruct the destroyed Demised Premises, and in such event, this Agreement and the tenancy hereby created shall cease as of the date of said occurrence, the Rent to be adjusted as of such date. If the Demised Premises shall be rendered wholly untenantable, Tenant shall have the right, to be exercised-by notice in writing; delivered to the City �:�_ti-�.- RJR,.. within thirty (30) days from and after said occurrence, to elect to terminate this Agreement, the Rent to be°adjusted accordingly. err. r �JA}4. J°Jr . 24.3 Notwithstanding any clause contained rn this Section 24, if the damage is not covered by the City's s-•i.'ns:s urance, .v_ the City shall have no obligation thenp to repair the damage; but the City shall advise Tenant in writing within thirty (30).,days of the 4occurren'ce giving rise:,:to the damage and of its decisioninot to_repair, and the Tenantmay, at any time thereafter, elect to terminate Agreement, and the Rent`shall be adjusted accordingly. 25. Quiet Enjoyment Stis i.` :0 'Y. Tena_ nt sh'all enjoy quiet enjoyment of the Demised Premises and shall not be evicted or disturbed in°{p s session 6f fthe Demised Premises so long as Tenant complies with theterms ofthis Agreement. vtik: i 26. Waiver } 26.1 It is='mitually couenanted and agreed by and between the parties hereto that tlefailure of the City to insist upon the strict performance of any of the conditions covenants, terms or provisions of this Agreement, or to exercise any option herein conferred, will not be considered or construed as a waiver or relinquishment for the future of any such conditions, covenants, terms, provisions or options but the same shall continue and remain in full force and effect. 26.2 A waiver of any term expressed herein shall not be implied by any neglect of the City to declare a forfeiture on account of the violation of such term if such violation by continued or repeated subsequently and any express waiver shall not affect any term other than the one specified in such waiver and that one only for the time and in the manner specifically stated. 16 26.3 The receipt of any sum paid by Tenant to the City after breach of any condition, covenant, term or provision herein contained shall not be deemed a waiver of such breach, but shall be taken, considered and construed as payment for use and occupation, and not as Rent, unless such breach be expressly waived in writing by the City. 27. Notices. The addresses for all notices required under this Agreement shall be as follows, or at such other address as either party shall be in writing, notify the other: LANDLORD: City Manager City of Miami Beach 1700 Convention-Center Drive Miami Beach`"Florida 33139 , f With copy to ' Asset Managers{ City of Miami Beach" " 17OO=Convention Center:�Drive Miami zBeach, Florida 33139u{4 TENANT: :Gabriel Castillo, Secretary 44 SB W ng, Inc. - 3201 N E;:183�d Street, #1806 -; �. AventurafFlorida 331'60 t �s yY With copy to 'V- Branch Manager zfi 1:6U ni.K. Wax Center - = 771 17th Street Y. Miami_Beach, Florida 33139 ,14. jam ?#' All notices shall`-L a}:hand delivered and a receipt requested, or by certified mail witli keturn receipt{requested,ahnd shall be effective upon receipt. 28. Entire and Binding Agreement. This Agreement contai`s all of the agreements between the parties hereto, and it _t�Y may not be modifiedfinany manner other than by agreement in writing signed by all the parties he a odor their successors in interest. The terms, covenants and conditions contained herein shall inure to the benefit of and be binding upon the City and Tenant and their respective successors and assigns, except as may be otherwise expressly provided in this Agreement. 29. Provisions Severable. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, 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 Agreement shall be valid and be enforced to the fullest extent permitted by law. 17 30. Captions. The captions contained herein are for the convenience and reference only and shall not be deemed a part of this Agreement or construed as in any manner limiting or amplifying the terms and provisions of this Agreement to which they relate. 31. Number and Gender. Whenever used herein, the singular number shall include the plural and the plural shall include the singular, and the use of one gender shall include all genders. 32. Limitation of Liability. w The City desires to enter into this Agreementionly if in so doing the City can place a limit on the City's liability for any cause'of action for money damages due to an alleged breach by the City of this:Agreementso that its liability for any such breach never exceeds the sum of Ten Thousand ($10,000.00) Dollars. Tenant hereby expresses its willingness to enter into(this Agreement with Tenant's recovery from the City forany g �` dama a action fors=breach of contract to be limited to a maximum amount of $_:10,000.00. " {Accordingly, and notwithstanding any other,term or condition .of this Agreementaenant hereby agrees that the City shallnot Lbe liable f&‘:1::. enant for damage in an amount in excess of $10, ' �. 000.00 for a�naction or clairrrfOkDreach of contract arising out of the performance or non-perfomance°-of:any obligations imposed upon the City by this Agreement. Nothing contained in"thisy Section orelsewhere in this Agreement is in any wayntendedato be aCwaiver sof�the,limitatihon placed upon the City's } liability as set-forth int:Florida Statutes,-Section 76:8828. F� a 33. Surrender of the Demises Premises. :: Tenant:shall, on or;beforether last day of the Term herein demised, or the sooner ter ination thereof, peaceably�andquietly-leave, surrender and yield upon to the kCi�`` the Demised Premises, together; with any and all equipment, fixtures, furnishings, appliances or?other personal property, if any located at or on the Demised Premises Viand used::by Tenant in the maintenance, management or operation, of the Dem_ ised Premises, excluding any trade fixtures or personal �.•� Sp+av property;_;ifany, which be removed without material injury to the Demised Premises, ~free of all.�:liens claims and encumbrances and rights of others or broom-clean;=�togetherwith all structural changes, } s ; alterations, additions, and N improvements whjch%:may have been made upon the Demised Premises, in good order, condition and repair, reasonable wear and tear excepted, subject, however, to the subsequent provisions of this Section. Any property which pursuant to the provisions of this Section is removable by Tenant on or at the Demised Premises-upon the termination of this Agreement and is not so removed may, at the option of the City, be deemed abandoned by Tenant, and either may be retained by the City as its property or may be removed and disposed of at the sole cost of the Tenant in such manner as the City may see fit. If the Demised Premises and personal property, if any, be not surrendered at the end of the Term as provided in this Section, Tenant shall make good the City all damages which the City shall suffer by reason thereof, and shall indemnify and hold harmless the City against all claims made by any succeeding tenant or 18 purchaser, so far as such delay is occasioned by the failure of Tenant to surrender the Demised Premises as and when herein required. 34. Time is of the Essence. Time is of the essence in every particular and particularly where the obligation to pay money is involved. 35. Venue: This Agreement shall be deemed to have been made and shall be construed and interpreted in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to theinforcement of any and all the terms or conditions herein, exclusive venue forth.e enforcement of same shall lie in Miami-Dade County, Florida. CITY AND TENANT HEREBY KNOWINGLY AND INTENTIONALLY WAIVE .:�. r, s�:rr- THE RIGHT TO TRIAL BY JURY6Nf$ANY ACTION OR PROCEEDING THAT THE CITY AND TENANT MAY HEREIN AFTER INSTITUTE AGAINST EACH OTHER WITH RESPECT TO ANY VI TTER ARISING OUTOF OR RELATED TO THIS AGREEMENT. �. �,., g 36. Radon is a naturally occurring-radioactive gas that when it is accumulated in a building in sufficient quantities, mayrr£paresent health risks to persons who are exposed to it over time Leuels of•°Radon that';exceed Federal and State guidelines have .been found inkbuildings-' in. Florida. Additional information regarding Radon and-{.Radon testing, ay- be 'obtned from your County Public Health Unit. 37. No Dangerous Materials = _.. Ten `nt agrees not touse or perrnati in the,Demised Premises the storage and/or fuse of gasolinefuel oils diesel, illuminating oils, oil lamps, combustible powered electricity producing. genera, turpentine, benzene, naphtha, propane, natural ga-S or other similarr-substances, combustible materials, or explosives of any kind, o;r-_:any substance or thf ng prohibited in the standard policies of fire insurance'companiesithe State of Florida. Any such substances or materials found within4he Demised Premises shall be immediately removed. Tenant shall indemnify and hold the City harmless from any loss, damage, cost, or expense of the City, including, without limitation, reasonable attorney's fees, incurred as a result of, arising from, or connected with the placement by Tenant of any "hazardous substance" or "petroleum products" on, in or upon the Demised Premises as those terms are defined by applicable Federal and State Statute, or any environmental rules and environmental regulations promulgated thereunder. The provisions of this Section 37 shall survive the termination or earlier expiration of this Agreement. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 19 IN WITNESS WHEREOF, the parties hereto have caused their names to be signed and their seals to be affixed, all as of the day and year first above written, indicating their agreement. Attest: CITY OF MIAMI BEACH, FLORIDA Rafael E. Granado, City Clerk Philip Levine.Mayor h of °- . _ Signature =: Aine a 1::-.1.47.41. L Print Name r + ., Y•, t Attest: Null--sr SB WAXING, INC. w ., } ��1^ i .rte '-,--: 1. `.A Y3�C Yi+t .f t, 'vF+' yt;i-Y Kam_b" ~,4. Signature / Corporate Secrete.; ' • t�abriel Castillo, Secretary p rY =t�. rY :r ,vV { :_PrrntName ay -_ Signature { Print N me us='`` CORPORATE SEAL (affix seal here) T:\AGENDA\2015\July\TCED\SB Waxing, Inc\SB Waxing Inc.-Lease Agreement(Final Draft).docx 20 EXHIBIT 1 Demised Premises A— F.P.L ROOM • _ , ELECTRICAL ROOM \ N ! UNIT 4 - STORAGE ■.it- m % `\ • • IlIl,‘,*-‘..■......\. ..'..,‘,....•'+,. ..-N '4. i[I...• • -M∎iv; UNIT • • '- .'' ".' 7,,k.' s-"N.‘ - :: ce 'ti. • "*.`:•:S I 4, UNIT 2 z • i, ; w • N z ti \ • W Z UNIT 1p • :; `\ _ III I 1 ,,. �. COMMON __ `. -!� ELEMENTS .i _ W' gIil STAIRS -• :+,• •CLOSET !��,. - -. *',�- .v ' Yrw " _ ... m1.- AREA UNIT 1=1,326.78 S/F h--....:'�'•r`=1 AREA UNIT 2=1,802.89 S/F I f:=«:=7"---A o ioo zoo AREA UNIT 3=1,290.59 S/F =� ;:; "1 SCALE FEET _ AREA UNIT 4=1,268.87 S/F h:;;;='::µ °::_:,1 • • SURVEYOR'S NOTE: DETAILS OF INTERIORS WALLS WERE BASED IN ORIGINAL DRAWINGS AND BEST INFORMATION OBTAIN FROM FFELD SURVEY First Floor Plan • Prepared by. 1701 MERIDIAN BUILDING CONDOMINIUM wNyy g!../KiarnLSGach' , •,91.40, eovirrv1Oe altsne,u •iaee.inr io 77 Os��orn•onlloiv cund1gsino Page 4 of 9 - `' �77.oe d5 6790439 Exhibit"B" Oale'4I77IQ007 21 hi W i r+ Z p �. '° N"•' L C d a) t\ r O N N C O y Y t!] y O ° gyp" > C C N 01 i p a)L O C a) L L O O m +.. CO "'' O CO C Ca @ N 0) v! U r: U ca �_ E Q Q I-I- O °-0 -I a0i d o a=i o O ° cl aa, • L= O N a) Q7 d a)C c�] co ° L N > ca a) 07 i.•+ _ .O.' 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