2015-29238 Reso RESOLUTION NO. 2015-29238
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AMENDMENT NO. 1 TO LEASE AGREEMENT
BETWEEN THE CITY AND ALPHA 22 LLC (TENANT), DATED OCTOBER 16,
2013 (LEASE), INVOLVING THE USE OF APPROXIMATELY 2,216 SQUARE
FEET OF CITY OWNED UNIMPROVED LAND, LOCATED AT 22 WASHINGTON
AVENUE, MIAMI BEACH, FLORIDA (PROPERTY), ADJACENT TO AN EXISTING
RESTAURANT SPACE LOCATED AT 816 COMMERCE STREET, MIAMI BEACH,
FLORIDA (RESTAURANT), CURRENTLY USED AS AN OUTDOOR SEATING
AREA, CONCURRENT WITH THE LEASE/USE OF THE RESTAURANT; SAID
AMENDEMENT APPROVING THE SALE OF THE RESTAURANT, CONSENTING
TO THE ASSIGNMENT OF THE LEASE BY ALPHA 22 LLC (AS TENANT AND
ASSIGNOR) TO FLORIDA FOOD DISTRICT INC. (AS NEW TENANT AND
ASSIGNEE).
WHEREAS, the City and Alpha 22 LLC (Tenant) are parties to a Lease Agreement, dated
October 16, 2013 (Lease), involving the use of approximately 2,216 square feet of City owned
unimproved land, located at 22 Washington Avenue, Miami Beach, Florida (Property); and
WHEREAS, the Property is adjacent to an existing restaurant space located at 816 Commerce
Street, Miami Beach, Florida (Restaurant), and is currently used as an outdoor seating area,
concurrent with the lease/use of the Restaurant; and
WHEREAS, the Lease was for a period of five (5) years, commencing on November 1, 2013
and ending on October o Octobe 31, 2018, with an option to renew for an additional four (4) years and three
9 P OY
hundred sixty four (364) days, at the City's sole discretion; and
WHEREAS, Alpha 22 LLC (as Tenant and Assignor) wishes to sell the Restaurant and assign
the Lease to Florida Food District Inc. (as new Tenant and Assignee); and
WHEREAS, pursuant to Section 8.3 of the Lease, any change in the ownership of the
Restaurant must be approved by the City Manager; and
WHEREAS, pursuant to Section 12.1 of the Lease, Tenant shall not have the right to assign
the Property without the prior written consent of the City, which consent shall not be unreasonably
withheld; and
WHEREAS, the Administration recommends that the Mayor and City Clerk execute
Amendment No. 1 to the Lease, including the following essential terms:
a. approving the sale of the Restaurant to the New Tenant;
b. approving the assignment of the Lease, without releasing the current Tenant from liability
under the Lease, and contingent upon the New Tenant completing the purchase of the
restaurant;
c. including a six month rolling guaranty, by Philippe Carteau, individually, owner of the
9 9 9 Y Y PP � Y�
New Tenant entity; and
d. all other terms and conditions of the Lease shall remain in full force and effect.
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, approve and authorize the Mayor
and City Clerk to execute an Amendment No. 1 to Lease Agreement between the City and Alpha
22 LLC (Tenant), dated October 13, 2013 (Lease), involving the use of approximately 2,216 square
feet of City owned unimproved land, located at 22 Washington Avenue, Miami Beach, Florida
(Property), adjacent to an existing restaurant space located at 816 Commerce Street, Miami
Beach, Florida (Restaurant), currently used as an outdoor seating area, concurrent with the
lease/use of the Restaurant; said amendment approving the sale of the Restaurant and consenting
to the assignment of the Lease by Alpha 22 LLC (as Tenant and Assignor), to Florida Food District
Inc. (as new Tenant and Assignee).
PASSED and ADOPTED this ' day of peaki6er 2015.
ATTEST: ':
Raf el E. Gra ado, Cl C� a,,`�� Philip Levine(M
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INCORP ORATED'
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attorne ir -7i Dote
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission, Approving And Authorizing The Mayor And City Clerk To Execute An
Amendment No. 1 To Lease Agreement Between The City And Alpha 22 LLC (Tenant), Dated October 13, 2013 (Lease),
Involving The Use Of Approximately 2,216 Square Feet Of City Owned Unimproved Land, Located At 22 Washington
Avenue, Miami Beach, Florida (Property), Adjacent To An Existing Restaurant Space Located At 816 Commerce Street,
Miami Beach, Florida (Restaurant), Currently Used As An Outdoor Café, Concurrent With The Lease/Use Of The
Restaurant; Said Amendment Approving The Sale Of The Restaurant And Consenting To The Assignment Of The Lease
By Alpha 22 LLC (As Tenant And Assignor),To Florida Food District Inc. (As New Tenant And Assignee).
Key Intended Outcome Supported:
N/A
Supporting Data(Surveys, Environmental Scan,etc.):
N/A
Item Summary/Recommendation:
The City and Alpha 22 LLC (Tenant) are parties to a Lease Agreement, dated October 16, 2013(Lease), involving the use
of approximately 2,216 square feet of City owned unimproved land, located at 22 Washington Avenue, Miami Beach,
Florida (Property). The Property is adjacent to an existing restaurant space located at 816 Commerce Street, Miami
Beach, Florida (Restaurant), and is currently used as an outdoor café, concurrent with the lease/use of the Restaurant.
The Restaurant accommodates approximately 35 people and the Property accommodates outdoor seating for an
additional 56 people.
The Lease is for a period of five (5) years, commencing on November 1, 2013 and ending on October 31, 2018, with an
option to renew for an additional four(4) years and three hundred sixty four (364) days, at the City's sole discretion. The
tenant is currently paying $21.22 per square foot ($47,019 annually / $3,918 monthly), with three percent (3%) annual
increases.
The City has the right to re-negotiate the Base Rent amount, concurrent with Tenant's right to renew the lease, subject to
the City's approval of the renewal term ("Renewal Rent"). The Renewal Rent may be based upon a percentage of gross
receipts or may continue to be assessed as a fixed annual rent, based upon the fair market rent at the time, to be
escalated annually by three percent(3%); however, at no time will the Base Rent during the renewal term be less than the
rent for the previous lease year plus the three percent(3%)escalation.
Alpha 22 LLC (as Tenant and Assignor) wishes to sell the Restaurant and assign the Lease to Florida Food District Inc.
(as new Tenant and Assignee). Pursuant to Section 8.3 of the Lease, any change in the ownership of the Restaurant must
be approved by the City Manager. The City has negotiated a six (6) month personal guarantee as a condition of the City
consenting to the assignment.All other terms and conditions of the Lease shall remain in full force and effect.
Due to its limited size and shape, the Property serves little more than to provide access to 816 Commerce Street. It is
unlikely the City would generate any other revenue from the Property other than as an outdoor seating area for the
Restaurant at 816 Commerce Street. The Administration recommends that the Mayor and City Commission adopt the
Resolution approving and authorizing the Mayor and City Clerk to execute an Amendment No. 1 to Lease Agreement,
approving the sale of the Restaurant,from Alpha 22 LLC to Florida Food District Inc., and consenting to the assignment of
the Lease from by Alpha 22 LLC to Florida Food District Inc.
Advisory Board Recommendation:
N/A
Financial Information:
Amount Account
Source of Funds: 1 N/A
Financial Impact Summary: The current Base Rental Rate is $21.22 PSF, with three percent (3%) annual increases.
Over the remaining thirty four(34)months of the lease,the aggregate Base Rent amounts to$137,494.81.
City Clerk's Office Legislative Tracking:
Max Sklar, ext. 6116
Sign-Offs:
De•artme'
t���erect, Assistant Ci �-na•er Cit
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MIAMIBEACHAGENDA ITEM R-1 v
DATE 12`1-1
IAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of t e City Co ission
FROM: Jimmy L. Morales, City Manager 7
DATE: December 9, 2015
SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE
AN AMENDMENT NO. 1 TO LEASE AGREEMENT BETWEEN
THE CITY AND ALPHA 22 LLC (TENANT), DATED OCTOBER
16, 2013 (LEASE), INVOLVING THE USE OF APPROXIMATELY
2,216 SQUARE FEET OF CITY OWNED UNIMPROVED LAND,
LOCATED AT 22 WASHINGTON AVENUE, MIAMI BEACH,
FLORIDA (PROPERTY), ADJACENT TO AN EXISTING
RESTAURANT SPACE LOCATED AT 816 COMMERCE
STREET, MIAMI BEACH, FLORIDA , (RESTAURANT),
CURRENTLY USED AS AN OUTDOOR CAFÉ, CONCURRENT
WITH THE LEASE/USE OF THE RESTAURANT; SAID
AMENDEMENT APPROVING THE SALE OF THE RESTAURANT
AND CONSENTING TO THE ASSIGNMENT OF THE LEASE BY
ALPHA 22 LLC (AS TENANT AND ASSIGNOR), TO FLORIDA
FOOD DISTRICT INC. (AS NEW TENANT AND ASSIGNEE);
WITH SUCH APPROVAL AND CONSENT EFFECTIVE UPON
EXCUTION OF THE AMENDMENT NO. 1 TO LEASE
AGREEMENT BY THE MAYOR AND CITY CLERK.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The City and Alpha 22 LLC (Tenant) are parties to a Lease Agreement, dated
October 16, 2013 (Lease), involving the use of approximately 2,216 square feet
of City owned unimproved land, located at 22 Washington Avenue, Miami Beach,
Florida (Property). The Property is adjacent to an existing restaurant space
located at 816 Commerce Street, Miami Beach, Florida (Restaurant), and is
currently used as an outdoor café, concurrent with the lease/use of the
Restaurant. The Restaurant accommodates approximately 35 people and the
Property accommodates outdoor seating for an additional 56 people.
Commission Memorandum
22 Washington Avenue-Lease Assignment
December 9, 2015
Page 2 of 2
ANALYSIS
The Lease is for a period of five (5) years, commencing on November 1, 2013
and ending on October 31, 2018, with an option to renew for an additional four
(4) years and three hundred sixty four (364) days, at the City's sole discretion.
The current Base Rent schedule is illustrated in the following chart:
Base Rent per Total Annual Monthly Rent
Year Rent Commencement Square Foot Rent Payment
Year 1 March 21, 2014 $20.00 $40,626.63 $3,693.33
Year 2 November 1, 2014 $20.60 $45,649.60 $3,804.13
Year 3 November 1, 2015 $21.22 $47,019.09 $3,918.26
Year 4 November 1, 2016 $2185 $48,429.66 $4,035.81
Year 5 November 1, 2017 $22.51 $49,882.55 $4,156.88
The City has the right to re-negotiate the Base Rent amount, concurrent with
Tenant's right to renew the lease, subject to the City's approval of the renewal
term ("Renewal Rent"). The Renewal Rent may be based upon a percentage of
gross receipts or may continue to be assessed as a fixed annual rent, based
upon the fair market rent at the time, to be escalated annually by three percent
(3%); however, at no time will the Base Rent during the renewal term be less
than the rent for the previous lease year plus the three percent (3%) escalation.
Alpha 22 LLC (as Tenant and Assignor) wishes to sell the Restaurant and assign
the Lease to Florida Food District Inc. (as new Tenant and Assignee). Pursuant
to Section 8.3 of the Lease, any change in the ownership of the Restaurant must
be approved by the City Manager. The City has negotiated a six (6) month
personal guarantee as a condition of the City consenting to the assignment. All
other terms and conditions of the Lease shall remain in full force and effect.
CONCLUSION
Due to its limited size and shape, the Property serves little more than to provide
access to 816 Commerce Street. It is unlikely the City would generate any other
revenue from the Property other than as an outdoor seating area for the
Restaurant at 816 Commerce Street. The Administration recommends that the
Mayor and City Commission adopt the Resolution approving and authorizing the
Mayor and City Clerk to execute an Amendment No. 1 to Lease Agreement,
approving the sale of the Restaurant, from Alpha 22 LLC to Florida Food District
Inc., and consenting to the assignment of the Lease from by Alpha 22 LLC to
Florid.,,I ood District Inc.
it.?
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