2016-29300 Reso 2016-29300
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 THE SECOND
AMENDMENT TO LEASE AGREEMENT WITH THE MIAMI BEACH
POLICE ATHLETIC LEAGUE, INC (PAL), SUBSTANTIALLY IN THE
FORM ATTACHED TO THIS RESOLUTION, RELATING TO THE
BUILDING LOCATED AT 999 11TH STREET (PREMISES); SAID
AMENDMENT ESTABLISHING THE PERMITTED USES UNDER THE
LEASE; CLARIFYING AND ESTABLISHING TERMS RELATING TO
THE SHARED USE OF THE PREMISES BY THE CITY AND PAL;
CLARIFYING THE OPERATIONAL, MANAGEMENT, AND
MAINTENANCE OBLIGATIONS WITH RESPECT TO THE SHARED
USE OF THE PREMISES; PROVIDING PAL WITH A $1.00 PER HOUR
•
OF THE OFF-DUTY POLICE SURCHARGE DURING THE TERM OF
THE LEASE; AND FURTHER EXTENDING THE LEASE AGREEMENT
TERM FOR AN ADDITIONAL TWO (2) YEARS, THROUGH AND
INCLUDING JUNE 30, 2025.
WHEREAS, the City is the owner of the fee simple title in and to that certain City-owned
property consisting of a building having approximately 13,367 square feet, within Flamingo
Park, located at 999 11th Street, Miami Beach, Florida, 33139 (the "premises"); and
WHEREAS, on May 15, 1996, the Mayor and City Commission adopted Resolution No.
96-21987, approving the Lease Agreement with PAL for use of the premises for a five (5) year
term, commencing on July 1, 1996 and ending on June 30, 2001; and
WHEREAS, in 1997, PAL was awarded a grant from Miami-Dade County under the Safe
Neighborhood Parks Bond Program to assist in funding the building of the new PAL Youth
Resources Center ("PAL Center") to be located at the premises; and
WHEREAS, one of the requirements of the Safe Neighborhood Parks Bond Program
was that grant funds used for the purposes of development, improvement, rehabilitation or
restorations by the grantee (PAL) be expended only on lands owned by the grantee or upon
lands for which the grantee holds a lease or other use agreement for an unexpired term of
twenty-five (25) years; and
WHEREAS, in order to meet the requirements of the Safe Neighborhood Parks Bond
Program, on June 17, 1998, the City Commission approved Resolution No. 98-22787,
authorizing the First Amendment to Lease Agreement, which amendment extended the lease
term from June 30, 2001, to June 30, 2023; added Exhibit "B" describing the permanent
improvements (i.e. the new "PAL Center") which were going to be constructed at the premises;
and updated the notice provision for the City under the Lease Agreement; and
WHEREAS, On September 19, 2014 the Internal Audit Division of the City of Miami
Beach Office of Budget and Performance Improvement (OBPI) published an Internal Audit
Report relating to the activities of the Miami Beach Police Athletic League (PAL) between June
1, 2009 and February 28, 2014; and
WHEREAS, the audit report highlighted a number of shortcomings that needed to be
addressed and said audit findings were presented to the Finance and Citywide Projects
Committee at its September 24, 2014 meeting; and
WHEREAS, the City and PAL hereby wish to amend the Lease Agreement in order to:
(1) address the audit findings contained in the September 19, 2014 Audit Report; (2) establish
the permitted uses on the premises to coincide with the evolving character of the PAL Center;
(3) clarify and establish the terms and conditions relating to the shared use of the premises by
the City and PAL; (4) clarify the obligations of the City and PAL, in connection with their
respective use of the premises, including without limitation, apportioning responsibility for the
payment of operational expenses, management obligations, maintenance obligations,
insurance obligations and other like necessary conditions, in connection with providing a
recreational and sports facility for use by the community; (5) provide for financial and
programmatic reporting requirements; and (6) provide PAL with a $1.00 per hour of the off-duty
police surcharge during the term of the Lease Agreement; and
WHEREAS, the Administration recommends that the Mayor and the City Clerk execute
the Second Amendment to the Lease Agreement, substantially in the form attached hereto and
incorporated herein by reference as Exhibit "A".
NOW THEREFORE, BE IT DULY RESOLOVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve and authorize the Mayor and City Clerk to execute the Second
Amendment to Lease Agreement with the Miami Beach Police Athletic League, Inc. (PAL),
substantially in the form attached to this Resolution, relating to the building located at 999 11 st
Street (premises); said amendment establishing the permitted uses under the lease; clarifying
and establishing terms relating to the shared use of the premises by the City and PAL;
clarifying the operational, management, and maintenance obligations with respect to the
shared use of the premises; providing PAL with a $1.00 per hour of the off-duty police
surcharge during the term of the Lease Agreement; and further extending the Lease
Agreement term for an additional two years, through and including June 30, 2025.
PASSED AND ADOPTED this /0 ,day of re eiy(4.0 r , 2016
. F,9°ti.#
ATTEST: .'�� \ �y 4 /�7
* INCORP ORATED-` 6 �/
0 4 Lc('(c,s,, 4� E'er' s
q,� .. .•�„=, ,�'- E, MAYOR
RAFAEL E. GRANADO, CITY CLERK ��""H"2���
APPROVED AS TO
T:/agenda/2016/February 10/Police Department/PAL' econd Amendment Reso GNT FORM & LANGUAGE
&F R EX CUTION
City Attorney ,=i'ic Date
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT WITH THE MIAMI
BEACH POLICE ATHLETIC LEAGUE, INC (PAL).
Key Intended Outcome Supported:
Insist On Police Department Accountability And Skilled Management/Leadership
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Item Summary/Recommendation:
On September 19, 2014 an internal Audit Division report of the Miami Beach Police Athletic League(PAL),
covering 2009-14, highlighted a number of findings. Thereafter, the City and the PAL negotiated the
Second Amendment to the Lease Agreement, which addresses the following issues(among others):
• Shared Use. currently 50% by each party, with certain portions of the premises being
used exclusively by PAL or City, with other areas shared.
• Shared obliqations/Expenses.
o Maintenance/Capital Improvements. The City shall be responsible for
maintenance and capital improvements for premises, except that with respect to
the following expense relating to the area used exclusively by PAL,for which PAL
shall be responsible: (1) floors; (2) walls; (3) maintenance of personalty in the
PAL Area in good, clean and working order; and (4) maintaining clean and in
good order the PAL Area; and
o Shared Utilities. (50%)of the shared utilities (cable, water and electricity).
• Deliverables. PAL shall provide reports/financial records; an annual report as to all
activities, including revenue generating uses; an audited financial statement; a detailed
operating budget, and upcoming annual programmatic plan.
• Back-payment for utility payments: City shall pay PAL$77,468.54 as back-payment for
previously shared and unpaid utility payments through December 31, 2015
• City continues to assign one full-time police officer to spearhead programming efforts.
• The PAL shall receive $1.00 from all of the Police Department's Off-Duty surcharges
• The PAL shall hire, at its own expense, an Executive Director to manage/fundraise.
• The fitness center shall continue to offer City of Miami Beach employees a 25%discount. .
Recommendation: Adopt the Resolution.
Advisory Board Recommendation:
NA
Financial Information:
Source of Amount Account
Funds: 1 77,468.54 General Fund Contingency Account
941i. 3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Chief of Staff Wendy Rich-Goldschmidt ext. 3054
Sign-Offs:
Department Director Assistant City Manager City Manager
Chief Daniel J. Oates MO
T:\agenda\2016\FEBRUARY\POLICEDEPARTMENT\Com_item_sum-PALlease GNT
11)
MIAMI AGENDA ITEM 87T
DATE
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
COMMISSION M MORANDUM
TO: Mayor Philip Levine and Members )f the City, ommission
FROM: Jimmy L. Morales, City Manager ; .41111�
DATE: February 10, 2016
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 THE SECOND AMENDMENT TO LEASE
AGREEMENT WITH THE MIAMI BEACH POLICE ATHLETIC
LEAGUE, INC (PAL), SUBSTANTIALLY IN THE FORM
ATTACHED TO THIS RESOLUTION, RELATING TO THE
BUILDING LOCATED AT 999 11TH STREET (PREMISES);
SAID AMENDMENT ESTABLISHING THE PERMITTED
USES UNDER THE LEASE; CLARIFYING AND
ESTABLISHING TERMS RELATING TO THE SHARED USE
OF THE PREMISES BY THE CITY AND PAL; CLARIFYING
THE OPERATIONAL, MANAGEMENT,AND MAINTENANCE
OBLIGATIONS WITH RESPECT TO THE SHARED USE OF
THE PREMISES; PROVIDING PAL WITH A $1.00 PER
HOUR OF THE OFF-DUTY POLICE SURCHARGE DURING
THE TERM OF THE LEASE; AND FURTHER EXTENDING
THE LEASE TERM FOR AN ADDITIONAL TWO (2)YEARS,
THROUGH AND INCLUDING JUNE 30, 2025.
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
HISTORY/BACKGROUND
The City is the owner of the fee simple title in and to that certain City-owned property
consisting of a building having approximately 13,367 square feet, within Flamingo Park,
located at 99911th Street, Miami Beach, Florida, 33139, hereinafter demised and described
(the"premises"). On May 15, 1996,the Mayor and City Commission adopted Resolution No.
96-21987, approving the Lease Agreement with the Miami Beach Police Athletic League,
Inc., a not-for-profit corporation ("PAL") for use of the premises for a five (5) year term,
commencing on July 1, 1996 and ending on June 30, 2001 (the "Lease Agreement").
In 1997, PAL was awarded a grant from Miami-Dade County under the Safe Neighborhood
Parks Bond Program(the"SNPB Program")to assist in funding the building of the new PAL
Youth Resources Center(the "PAL Center")to be located on the premises and one of the
requirements of the SNPB Program was that grant funds used for the purposes of
development, improvement, rehabilitation or restorations by the grantee(PAL)be expended
only on lands owned by the grantee or upon lands for which the grantee holds a lease or
other use agreement for an unexpired term of twenty-five (25)years. In order to meet the
requirements of the SNPB Program, on June 17, 1998, the City Commission approved
Resolution No. 98-22787,authorizing the First Amendment to Lease Agreement,dated June
17, 1998, which First Amendment extended the lease term from June 30, 2001, to June 30,
2023; added Exhibit B describing the permanent improvements(i.e.the new"PAL Center")
which were going to be constructed at the premises;and updated the notice provision for the
City under the Lease.
On September 19, 2014 the Internal Audit Division of the City of Miami Beach Office of
Budget and Performance Improvement(OBPI)published an Internal Audit Report relating to
the activities of the Miami Beach Police Athletic League (PAL) between June 1, 2009 and
February 28, 2014. The audit was presented to the Finance and Citywide Projects
Committee on September 24, 2014. The report highlighted a number of shortcomings that
needed to be addressed.
As a result of the audit findings, the City and the PAL Board met on numerous occasions to
clarify follow up responsibilities. These discussions evolved into a negotiated Second
Amendment to the Lease Agreement.
ANALYSIS
The Second Amendment to the Lease Agreement reflects the audit recommendations and
incorporates language regarding optimal business practices. A summary of the proposed
terms includes:
• Establish the permitted uses of the premises to coincide with the current uses of the
PAL Center.
• Shared Use. Clarify and establish the terms and conditions relating to the shared
use (currently approximately 50% by each party) of the premises, with certain
portions of the premises being used exclusively by PAL ("PAL's Area"), certain
portions being used exclusively by the City ("City's Area"), and certain portions
shared by PAL and the City("Shared Area").
• Shared obligations/Expenses. Clarify the obligations of the City and the PAL, in
connection with their respective use of the premises, including apportioning
responsibility for the payment of operational expenses, management obligations,
maintenance obligations, insurance obligations and other like necessary conditions,
in connection with providing a recreational and sports facility for use by the
community. Primarily, as follows:
o Maintenance/Capital Improvements. The City shall be responsible for the
payment of all maintenance and capital improvements expenses for the
entire premises, except that with respect to the following expense relating to
the PAL Area, for which PAL shall be responsible: (1) floors; (2) walls; (3)
maintenance of personalty in the PAL Area in good,clean and working order;
and (4) maintaining clean and in good order the PAL Area; and
o Shared Utilities. The parties shall equally share the costs of the shared
utilities (cable, water and electricity).
• Deliverables. PAL shall be responsible for providing the following reports/financial
records: (1)within 120 days from the end of each fiscal year, an annual report as to
all activities at the premises, including revenue generating uses; and an audited
financial statement and Profit and Loss statement for all PAL programs and uses at
the premises;(2)by August 1st of each year, PAL shall provide the City Manager with
a detailed line item annual operating budget, covering the next fiscal year, with
projected income and expense statement and upcoming annual programmatic plan.
• Approval of Subtenants. The following subtenants occupying a portion of PAL's
Area are being approved as subtenants: (1) Miami Beach Policeman's Relief and
Pension fund; (2) William Nichols Lodge No. 8 Fraternal Order of Police; and (3)
Miami Beach Police Athletic League Fitness Center, Inc.
FISCAL (IMPACT
The Second Amendment also contains the following terms, which have a financial impact:
• The City shall pay the PAL the total sum of $77,468.54 as back-payment for
previously shared and unpaid utility payments through December 31, 2015. This
amount will be paid from the General Fund Contingency Account.
• The PAL shall pay the City the rental sum of$1.00 per year, though June 30, 2025.
• The City and PAL shall be responsible for their proportionate share of all shared
utility bills generated in connection with the joint use of the premises,which currently
is 50%, but is subject to adjustment if there is a material change in the use of the
premises (defined as a change by 15% or more).
• The City's ongoing support of assigning one full-time police officer to spearhead
programming efforts, consistent with PAL's mission.
• The PAL shall receive$1.00 from all of the Police Department's Off-Duty surcharges
during the term of the Lease Agreement which may be used for the payment of the
Executive Director's salary, utility expenses and other operation expenses.
• The PAL shall hire, at its own expense, an Executive Director to manage and
operate all PAL activities, including fundraising.
• The fitness center shall continue to offer City of Miami Beach employees a discount
of no less than 25%off of the current rates for services offered by the fitness center,
so long as the discount does not violate any gift rules which may be implemented by
the City from time to time.
CONCLUSION:
The Administration recommends that the Mayor and City Commission adopt the Resolution
approving the proposed Second Amendment to the Lease Agreement between the City and
the Miami Beach Police Athletic League, Inc., relating to the building located at 999 11th
Street.
Exhibits:
"A"—Second Amendment to Lease Agreement
JLM:DJO:DW
T:\agenda\2016\FEBRUARY\POLICEDEPARTMENT\Com_memoPALlease
SECOND AMENDMENT TO LEASE AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH
AND THE MIAMI BEACH POLICE ATHLETIC LEAGUE
This Second Amendment ("Second Amendment") to the Lease Agreement, dated
May 15, 1996 (the "Lease Agreement"), as amended by that First Amendment to Lease
Agreement, dated June 17, 1998 ("First Amendment") (collectively the First Amendment
and the May 15, 1996 Lease Agreement are hereinafter referred to as the "Lease"), for the
property located at 999 11th Street, Miami Beach, Florida, between the CITY OF MIAMI
BEACH, a Florida Municipal Corporation ("City" or "Lessor"), and the MIAMI BEACH
POLICE ATHLETIC LEAGUE, INC., a not-for-profit corporation ("PAL" or "Lessee"), is
entered into this day of , 2015 ("Effective
Date").
WITNESSETH
WHEREAS, the Lessor is the owner of the fee simple title in and to that certain
City-owned property consisting of a building having approximately 13,367 square feet,
within Flamingo Park, located at 999 11th Street, Miami Beach, Florida, 33139, hereinafter
demised and described (the "premises"); and
WHEREAS, on May 15, 1996, the Mayor and City Commission adopted Resolution
No. 96-21987, approving the Lease Agreement with PAL for use of the premises for a five
(5) year term, commencing on July 1, 1996 and ending on June 30, 2001;:and
WHEREAS, in 1997, the PAL was awarded a grant from Miami-Dade County under
the Safe Neighborhood Parks Bond Program (the "SNPB Program") to assist in funding
the building of the new PAL Youth Resources Center ("PAL Center") to be located on the
premises; and
WHEREAS, one of the requirements of the SNPB Program was that grant funds
used for the purposes of development, improvement, rehabilitation or restorations by the
grantee (PAL) be expended only on lands owned by the grantee or upon lands for which
the grantee holds a lease or other use agreement for an unexpired term of twenty-five (25)
years; and
WHEREAS, in order to meet the requirements of the SNPB Program, on June 17,
1998, the City Commission approved Resolution No. 98-22787, authorizing the First
Amendment, which First Amendment extended the Lease term from June 30, 2001, to
June 30, 2023; added Exhibit B describing the permanent improvements (i.e. the new
"PAL Center")which were going to be constructed at the premises; and updated the notice
provision for the City under the Lease; and
WHEREAS, Lessor and Lessee hereby wish to amend the Lease in order to: (1)
establish the permitted uses on the premises to coincide with the current uses of the PAL
Center; (2) clarify and establish the terms and conditions relating to the shared use of the
premises by Lessor and Lessee; and (3) clarify the obligations of Lessor and Lessee, in
connection with their respective use of the premises, including without limitation,
apportioning responsibility for the payment of operational expenses, management
EXHIBIT
� rAn
8
obligations, maintenance obligations, insurance obligations and other like necessary
conditions, in connection with providing a recreational and sports facility for use by the
community; and
WHEREAS, the parties acknowledge that to the extent any of the provisions in this
Second Amendment are in conflict with the provisions of the SNPB Program agreement,
the provisions of the SNPB Program agreement shall govern.
NOW THEREFORE, the Lessor and the Lessee, for and in consideration of the
mutual covenants, agreements and undertakings herein contained, and in further
9 9
consideration of the payments herein mentioned, made and to be made, do by these
presents mutually covenant and agree to amend the Lease, as follows:
1. The recitals set forth above are true and correct and are incorporated
herein by reference.
2. The paragraph on page 1 of the Lease, commencing with the word
"WITNESSETH," is hereby amended as follows, including the replacement of Exhibit A
with the Exhibit A attached hereto and incorporated herein by reference
WITNESSETH: The Lessor, for and in consideration of the rent herein reserved
to be paid by the Lessee, and in consideration of the covenants herein to be kept and
performed by the Lessee, does hereby lease and demise,unto the Lessee the following
described prcmiscs City-owned facility (the "premises") situated in the City of Miami
Beach, County of Dade, State of Florida:
The building ("Building"), currently named and referred to as the "Pal Center",
having Aapproximately 12,600 13,367 'sq. ft.,_of property, located at 999 11th Street, in
Flamingo Park, together with all improvements and appurtenances located thereon
including, without limitation, the improvements contemplated in Exhibit B to the First
Amendment, which improvements have been completed and accepted by Lessor, more
particularly described as a portion of Bock 90, Ocean Beach, FL Addition No. 3 (Dade
County P.B. 2, P. 81), as contained in the atta ched Exhibit A.
Lessor and Lessee hereby acknowledge and agree that the premises, including,
without limitation, the Building are owned by the City of Miami Beach, Florida.
3. The paragraph on page 1 of the Lease (as amended by the First
Amendment), commencing with the words, "TO HAVE AND TO HOLD", is amended as
follows:
TO HAVE AND TO HOLD the premises unto the Lessee, from the 1st day of July
1996 to and including the 30th day of June, 2023 2025, the Lessee yielding and paying to
the Lessor the rental sum of one ($1.00) dollar per year., - _ : :- •-_ ---
approval of the Lessor..
4. The following paragraph on page 1 of the Lease is deleted in its entirety:
• Page 2 of 16
•..__ _. _ __ e _ __ a '. .- -. a • . e e e e . .._. -: -:
statute or ordinance ma pert to impose such sales tax against Lessor. The payment
annual rental. Lessee agrees that it will pay its Proportionate Share of real estate taxes, if
same are subsequently assessed against the Building and its Proportionate Share of
accompanied by a copy of the paid tax bill. Lessee's Proportionate Share of operating
9
Lessor. As used herein, Lessee's "Proportionate Share" means a fraction the numerator
of which is the square footage of the premises and the denominator of which is the square
footage of all of the rentable area in the building of which the premises-is a part
("Building"), including the square footage of the premises.
5. Paragraph 2 on page 2 of the Lease is deleted in its entirety and replaced
with the following:
including, but not limited to, electric, water, gas, telephone and garbage disposal.
2. Payments.
2.1 Sales/Use/Excise Tax(es). Lessee shall pay all sales or use or
excise tax(es), if any, imposed, levied or assessed against the rent, or any other
charge or payment required by any-governmental authority having jurisdiction over
the premises, even though the taxing statute or ordinance may purport to impose
such charge or payment against Lessor. The payment of such sales, use, or
excise tax(es) shall be made by Lessee concurrently with payment of the annual
rental.
2.2 Real Estate Taxes. Lessee also agrees that it will pay its
Proportionate Share of real estate taxes, if same are also assessed against the
premises.
As used herein, Lessee's "Proportionate Share" means a fraction, the
numerator of which is the square footage of the Building being occupied
exclusively by Lessee and jointly by Lessee and Lessor, and the denominator of
which is the square footage of all of the rentable area in the Building. As of the
Effective Date, Lessee is occupying approximately fifty percent (50%) of the
Building, with the balance of the Building being occupied by the Lessor's Parks and
Recreation Department; with certain portions of the Building being occupied
exclusively by PAL ("PAL's Area"), certain portions of the Building being occupied
exclusively by the City ("City's Area"), and certain portions of the Building being
shared by PAL and the City ("Shared Area"), as more particularly described in the
Site Plan, attached hereto and incorporated herein as composite Exhibit "A-1".
Unless otherwise indicated herein, Lessee's Proportionate Share shall be deemed
to be fifty percent (50%). Lessee's Proportionate Share of real estate taxes will be
paid upon demand accompanied by a copy of the paid tax bill. Notwithstanding
anything to the contrary in this Lease, if the premises is assessed real estate taxes,
Page 3 of 16
solely as a result of PAL's use of the premises (including the use by any,
subtenant's of PAL), PAL shall be solely responsible for the total real estate tax
assessment.
2.3 Operating Expenses: The operating expenses for the Building shall
be shared between the Lessor and Lessee, as follows:
2.3.1 Utilities: Based upon the parties' current use of the
premises, Lessor and Lessee shall each be responsible for payment of fifty
percent (50%) of the total utility bills generated in connection with the joint
use of the premises, which includes the bills for electricity, water, and cable
("Shared Utility Expenses"). As of the Effective Date, Lessor pays for the
water bill for the premises ("City's Utility Expenses") and Lessee pays for
the electricity and cable bills of the Shared Utility Expenses for the
premises ("PAL's Utility Expenses"). Each party shall continue to pay the
utility bills, as currently established; however, within thirty (30) days from
the end of each quarter (the end of each quarter shall be referred to herein
as September 30th, December 31st, March 31St, and'June 30th) throughout
the term, Lessee shall provide Lessor with a reconciliation, including the
supporting documentation for PAL's Utility Expenses, and Lessor will, in
turn, provide Lessee with a reconciliation, including the supporting
documentation for the City's Utility Expenses, showing each party's
respective share of the Shared Utility Expenses. The reconciliation
payment shall be due within thirty (30) days. from receipt of the
reconciliation. The Lessor's Asset Manager, shall: provide Lessee with
copies of the water bills, based upon the'established City of Miami Beach
rates, and as registered on the onsite water meter for the premises, which
has been installed at the sole expense of the Lessor. If there is a material
change in the use of the premises (by fifteen percent (15%) or more), the
parties agree to .adjust the proportionate share of the Shared Utility
Expenses, as applicable, which adjustment shall be subject to approval by
the City Manager, and memorialize,in writing through an amendment to the
Lease, executed by the City.Manager on behalf of the City,
2.4 Back-Payment. Lessor and Lessee agree that upon the parties'
execution of the Second Amendment, Lessor shall pay Lessee the amount of
$77,468.54 ("Back-Payment"), representative of the agreed amount which Lessee
has overpaid toward the Shared Utility Bills for the premises prior to execution of
this Second Amendment, which sum also includes a credit for sums PAL owes the
City in connection with PAL's portion of any City Utility Expenses, from May 1,
2015 through December 31, 2015. The parties agree and acknowledge that such
Back-Payment constitutes full and final settlement of any responsibility or liability
that the City may have to reimburse PAL for overpayments toward the Shared
Utilities, as of the Effective Date.
2.5 General Maintenance and Repairs. During the Lease term, Lessee
will not suffer or permit any strip or waste of the premises. Except as specifically
required to be maintained by Lessee in subsection 2.5.1, Lessor shall be
responsible for the general maintenance and repairs of the premises, inclusive of
PAL's Area (excluding the interior floors and walls of the PAL Area), City's Area,
and the Shared Area. As referred to herein, "general maintenance and repairs"
Page 4 of 16
shall include maintaining the interior of the premises, and every part thereof, in
good condition, including the HVAC systems, interior plumbing, interior electrical
problems and windows (Lessor's Repair Responsibility"). Lessee agrees to repair
and maintain the interior walls and floors of the PAL Area, and maintain, repair and
replace the security system, PAL phone system and PAL cable system, for the
premises (not just PAL's Area) as needed ("Lessee's Repair Responsibility).
Lessor shall repair all doors and windows, as may be required, as a condition
precedent to Lessee performing any maintenance, repairs and/or replacement of
the existing security system.
2.5.1 Lessee's Day to Day Maintenance Responsibility. Lessee
shall, at its sole cost and expense, and to the reasonable satisfaction of the
City, keep and maintain PAL's Area, including all improvements, fixtures,
and equipment thereon, in good, clean, and working order. Lessee
assumes sole responsibility and expense for day to day housekeeping,
janitorial services, and routine maintenance of PAL's Area. Lessee's day to
day maintenance responsibility shall include, without limitation, daily
removal of litter, garbage and debris generated by Lessee's use of the PAL
Area, including all garbage disposal generated by its operations and
activities occurring therein, and interior paint and floors.
2.5.2 Lessor's Day to Day Maintenance Responsibility. Lessor
shall, at its sole cost and expense, keep and maintain the City's Area and
Shared Area, including all improvements, fixtures, and equipment thereon,
in good, clean, and working order. Lessor assumes sole responsibility and
expense for day to day housekeeping, janitorial .services, and routine
maintenance of City's Area and Shared Area. Lessor's day to day
maintenance responsibility shall include, without limitation, daily removal of
litter, garbage and debris generated by Lessor's use of the City's Area and
Lessor and Lessee's use of the Shared Area, including all garbage disposal
generated by its operations and activities occurring therein, and interior
paint and floors.
2.6 Capital Improvements. During the Lease term, and as the owner of
the premises, Lessor shall be responsible for any costs associated with all capital
improvements to the premises, which Lessor, in its reasonable discretion, deems
necessary. As referred to herein, capital improvements shall include roof,
structural elements and infrastructure, exterior walls, exterior plumbing and sewer
lines, and major exterior electrical repairs (not otherwise the responsibility of the
electric company).
2.6.1 Notice of Maintenance and Capital Improvements to
premises. During the Lease term, Lessee shall provide Lessor with prompt
notice of any general maintenance and repairs and/or capital improvements
which may be required in PAL's Area, and Lessor and Lessee shall
coordinate in good faith such repairs and/or maintenance so as to minimize
the impact to PAL's operations.
2.7 Security. Lessee shall be responsible for providing and maintaining
a security system in order to protect the equipment and furnishings at the
premises. Under no circumstances shall Lessee be responsible for any stolen or
Page 5 of 16
damaged materials, equipment, and furnishings of Lessor's and/or Lessor's
officials, employees, contractors, patrons, guests, and/or invitees. Additionally,
under no circumstances shall Lessor be responsible for any stolen or damaged
personal property of Lessee and/or Lessee's officials, employees, contractors,
patrons, guests, and/or invitees.
6. Paragraph 3 on page 2 of the Lease is hereby deleted in its entirety and replaced
with the following:
3. - - --- - - - se - - e -
approval for any alteration, additions and/or improvements to the premises and
- -- -•-• -- - - • • -•- -•-- •. - - - -- - •-• - -•
_-• - a0 •0. •0- "_ `.i_ .000 0 0 - 0•• ••• •0•.
fixtures, are to be used in their "as is" condition, and the Lessee is solely
responsible for maintaining same, at its sole cost and expense, throughout the
Lessee, ordinary wear and tear excepted. Upon expiration of this Agreement,
Lessee shall quietly and peacefully redeliver said equipment, furnishings and
fixtures to Lessor.
3. The Lessee hereby reaffirms and acknowledges that, as of the Effective Date, it
continues to accept the premises in "As Is" condition. Lessee must first obtain
Lessor's written approval for any alteration, additions and/or improvements to the
premises, and then must pay for such modifications. Detailed plans for any
proposed alteration to the premises must first be submitted to Lessor, through its
City Manager, for Lessor's prior review and written approval. Upon expiration of
this Lease, Lessee shall quietly and peacefully redeliver to Lessor the premises
and any equipment, furnishings and fixtures, with the exception of the Fitness
Center(as defined in subsection 7.8) equipment and furnishings located in the PAL
Area, which are not permanently affixed to the real estate.
7. Paragraph 7 on page 2 of the Lease is amended to add the following paragraphs
(subsections) and a new Exhibit A-1:
7.1 Use by PAL. Lessee shall have access and use of the premises, as
more particularly described in the attached composite Exhibit A-1. It is understood
and agreed that the premises shall be used by Lessee during the entire term of this
Lease only for the purposes and/or uses described in (and/or otherwise approved
pursuant to) this subsection 7.1, and for no other purposes or uses whatsoever
("PAL Approved Uses"). In the event that the Lessee uses the premises for any
purposes not expressly permitted herein, such use shall be considered an event of
default under this Lease. The PAL Approved Uses shall be limited to and only
include the following:
Page 6 of 16
a. On-Site PAL Approved Uses. A recreational facility for use
by PAL consistent with its stated mission "to prevent juvenile
delinquency through the use of academics, athletics, and artistic
activities" ("PAL's Mission"), which approved uses include PAL's
administrative offices; weight room and gym room membership for
adults; Boxing Program; adult Fitness Center; High School Fitness
Program; distribution of snacks; community meetings and Miami-Dade
County elections' polling place. PAL also participates in the following
sponsorships/collaborations with community organizations, including
Another Chance Program Bicycle Program; Book Bag Giveaway; Boy
Scouts; Bus Pass Program; Girl Scouts; Kindergarten Corp.; Mommy
& Me; National PAL Mentoring Program; Nautilus School Awards
Program; PAL Summer Work Program; Police Explorers; Rad Kids;
Safety Patrol Programs; Take Your Child to Work Program;
Thanksgiving Basket Giveaway Youth Director Council/Youth
Leadership Program (YDC); Track Club; and tutoring services.
b. Pal and City Collaborative Approved Uses. In addition to the
above mentioned PAL Approved Uses, there are recreational
programs offered by the City of Miami Beach, which may have a
sponsorship component from PAL including, without limitation,
basketball, baseball, soccer, cheerleading, flag football, lacrosse,
track, concession stand sales, and other like community based youth
programs.
7.2 Use by the City. Lessor shall have access and use of the premises, as
more particularly described in the attached composite Exhibit A-1, solely for the
recreational and other community activities which the City offers to the public, as
determined by the City, in its sole discretion, from time to time, to be in the best
interest of the community ("City Approved Uses") which approved uses include:
providing a sport and recreational center; providing a quality after school program,
to include teacher work days'and holidays; providing sports, recreational and
enrichment programs in a supervised environment; providing homework
assistance, computer training, cultural arts, career mentorinq and social skills;
providing Spring Break Camp, Winter Break Camp, and Summer Camp; providing
disaster/hurricane on-site facility, as required by the City; providing a venue for
physical fitness programs; and public meetings.
7.3 Additional Programs/Adult vs Youth Programs. The parties agree
and acknowledge that, in furtherance of and consistent with the approved uses,
Lessee and/or the Lessor may wish to include additional activities and/or programs
at the premises ("Additional Programs"), which Additional Programs shall be
mutually coordinated between the parties. As to the City, such Additional Programs
shall be coordinated through its Parks and Recreation Department. The City and
PAL shall mutually agree upon and approve any such Additional Programs, in
writing, in advance of their implementation. The Additional Programs must be
reasonably related to the PAL Approved Uses and the City Approved Uses and
may not materially interfere with each other's operation. PAL and the City hereby
agree to use reasonable efforts in mutually determining and agreeing upon the
time, place, and manner in the coordination of such Additional Programs, pursuant
to policies and procedures, which shall be established and mutually agreed upon
Page 7 of 16
by PAL's Executive Director, on behalf of PAL, and the City's Parks and Recreation
Director, on behalf of the City. Similarly, the parties agree that the scheduling of
any permitted programming which involves adult participants in the Shared Area
shall be coordinated in advance by the parties, and memorialized in writing, prior to
the commencement of said adult programming, so that such adult programming
does not conflict with any children and youth programming, with the children and
youth programming taking precedence over the adult programming.
7.4 Conflict Resolution. Should a conflict arise whereby Lessee and
Lessor cannot reach an agreement with respect to coordinating the shared use of
the premises, including, without limitation, the parties' failure to agree to an
Additional Program, the matter may be brought to the attention of the City
Manager, whereby the City Manager will issue a written decision with respect to
the conflict. If either party is not satisfied with the decision of the City Manager, the
decision may be appealed to the City Commission within thirty (30) days from the
date of the City Manager's written decision and, if appealed timely, the final
decision of the City Commission shall be binding upon the parties. If a timely
appeal is not made, the decision of the City Manager shall be final.
7.5 In the event that Lessee seeks to use the premises for additional
programs, services, activities, and uses which are materially different from the
approved uses (as enumerated in subsection 7.1), then each such proposed new
program, service, activity and use shall be subject to the prior written approval of
the City Manager, which approval shall not be unreasonably withheld or delayed,
and provided such proposed program, service, activity and/or use is for a public
purpose and is consistent with the approved uses herein. In the event of approval
by the City Manager, all such new program(s), service(s), activity(ies), and use(s)
shall be memorialized by written amendment to this Lease.
7.6 Operation and Management of the Premises. Subject to the
approved uses enumerated in subsection 7.1 (as same may be amended from time
to time), and any and all other terms, limitations and required approvals contained
in this Lease, and compliance with all applicable laws, including, without limitation,
securing a Business Tax Receipt,Lessee is authorized and required to:
a. Manage and operate the PAL Area, in connection with the PAL
Approved Uses, activities, services, and programs thereon, for the purpose of
coordinating, implementing, and supervising all PAL Approved Uses;
b. Maintain and provide for the day-to-day maintenance and
housekeeping of the PAL Area;
c. Provide and maintain, at its sole cost and expense, all labor,
personnel, materials, equipment, and furnishings, as reasonably required, to
operate the PAL Area, in accordance with the approved uses set forth in
subsection 7.1. In the event any materials, equipment, and/or furnishings are lost,
stolen, or damaged, they shall be promptly replaced or repaired at the sole cost
and expense of the Lessee;
d. Supervise and direct all PAL employees, officers, agents,
contractors, invitees, visitors, and guests on the PAL Area and Shared Area, when
•
being utilized by PAL;
Page 8 of 16
e. Maintain and supervise detailed, accurate and complete financial
and other records of all Lessee activities under this Lease in accordance with
generally accepted accounting principles. All financial records maintained
pursuant to this Lease shall be retained by Lessee as long as such records are
required to be retained pursuant to Florida Public Records Law, and shall be made
available upon reasonable notice by the City;
f. Develop and implement programs and activities which support and
promote the PAL Approved Uses (as same may be amended from time to time);
and
g. Coordinate and cooperate with the City, in connection with approved
Additional Programs, as set forth in subsection 7.3 hereof, which coordination and
cooperation shall not be unreasonably withheld or delayed, and provided that such
Additional Programs do not materially interfere with PAL or the City's operations.
7.7 Hours of Operation. Lessor and Lessee herein agree that the
normal hours of operation for the premises shall be from 6:30 AM to 11:00 PM,
Monday through Friday, and 8:00 AM to 8:00 PM, during the weekend, in order to
accommodate the various programs which operate from the premises, including,
but not limited to:
a. PAL's Use of Premises:
Miami Beach Police Athletic League Fitness Center:
• Monday through Friday 6:30 AM — 11:00 PM
• Saturday and Sunday 8:00 AM —8:00 PM
Miami Beach Police Athletic League:
• Monday through Friday 7:00 AM — 9:00 PM
• Saturday 12:00 PM — 5:00 PM
• Sunday (depends upon program or event)
b. City's Use of Premises:
Monday through Friday 8:30 AM —9:00 PM
Saturday and Sunday 8:30 AM —9:00 PM
The parties recognize and acknowledge that under certain circumstances,
(i.e. special events, special programming, etc.), the normal hours of operation may
be modified to accommodate a special event or program. Lessee may be
permitted to extend its hours of operation, but any prolonged extension shall be
subject to the prior written consent of the City Manager(which consent shall not be
unreasonably withheld or delayed).
7.8 Lessor hereby consents to Lessee subleasing a portion of PAL's
Area to Miami Beach Policeman's Relief and Pension Fund, a
Page 9 of 16
and William Nichols Lodge No. 8 Fraternal Order
of Police, a Florida non-profit corporation, as more particularly delineated in Exhibit
A-1. Additionally, Lessor hereby consents to Lessee subleasing the portion of the
premises delineated for use as a fitness center (the "Fitness Center") on Exhibit A-
1 to Miami Beach Police Athletic League Fitness Center, Inc., a Florida for profit
corporation, which entity is wholly owned by PAL ("MB PAL Fitness Center").
As consideration for Lessor's approval of these subtenants, PAL indemnifies and
holds harmless Lessor, its elected officials, officers, employees and agents
(collectively, the City), from and against any and all damages, losses and all
claims, counterclaims, suits, demands, actions, causes of action, setoffs, liens,
attachments, debts, judgments, liabilities or expenses including, without limitation,
attorney's fees and legal costs by reason of any claim, suit or judgment arising or
alleged to arise from, or relating to the use of the premises by any of said
subtenants, including, without limitation, real estate taxes which may be assessed
against the premises as a result of the use of the premises by any of the approved
subtenants. Additionally, PAL shall ensure that all said approved subtenants shall
secure any requisite governmental approvals to operate from the premises,
including the requisite business tax receipts.
Additionally, as further consideration for the approval of the Miami Beach Police
Athletic League Fitness Center, Inc., and as an additional public benefit, PAL shall
ensure that the Fitness Center shall provide all Miami Beach employees a reduced,
full access pricing that is at least 25% off the non-employee membership fee,
subject to compliance with the City's policies and procedures, including, without
limitation, any gift policies, as may be amended from time to time.
8. Paragraph 10 on page 3 of the Lease is hereby deleted in its entirety.
10. Lessee agrees to keep the interior of the premises in good condition during the
plumbing, doors and windows, and will keep the same in good, sound, clean
alone excepted, and will not suffer or permit any strip or waste of the premises.
9. Paragraph 19 on page 4 of the Lease is hereby deleted in its entirety.
mortgage or deed of trust presently encumbering the premises, or which may
hereafter be made on account of any proposed loan to be placed on the premises
- -- - - - -- - -- - --- -- - e- -e a- -e - -e - - •
10. Paragraph 20 on page 4 of the Lease is amended as follows:
20. At the expiration of the term hereof, the Lessee shall quietly and peaceably
deliver the premises, and any equipment, furnishings, and fixtures (excluding the
equipment for the Fitness Center (as defined in subsection 7.8)) to the Lessor, in
the same repair and condition in which they were received, ordinary wear and tear
excepted. : - - - = - - - -e , . -- - -- e- - e. =
Page 10 of 16
remove those "trade fixtures" installed by Lessee, and as set forth in Paragraph 3.
herein.
11. Paragraph 21 on page 5 of the Lease is hereby deleted in its entirety.
building in which premises are situated, in good repair. The Lessee shall give to
the Lessor seven (7) days-written netice of needed repairs, and the Lessor shall
have a reasonable time thereafter within which to commence said repairs.
12. Paragraph 26 on page 5 of the Lease is amended as follows:
26. Should any mechanics' liens, mortgages, or other liens be filed against the
premises or any part thereof for any reason whatsoever by reason of Lessee's acts
or omissions or because of a claim against Lessee, Lessee shall cause the same
to be cancelled and discharged, of record, by bond or otherwise within twenty thirty
(245 30 days after the filing such lien.)
13. Paragraph 27, commencing on page 5 of the Lease, is hereby deleted in its
entirety.
Lessee upon the commencement date hereof, for any reason whatsoever, the
deliver posscsion. In such event, the rent set forth herein shall abate until such
term hereof shall be deemed to commence upon such date, provided, however,
termination date set forth on Pagc 1 hereof.
14. Paragraph 30, commencing;on page 6 of the Lease, is amended to update the
designated parties for notice purposes, as follows:
For Lessor: Sergio Rodriguez Jimmy L. Morales
City Manager.
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
With a copy to: Raul J. Aquila
City Attorney
City of Miami Beach
1700 Convention Center Drive
4th Floor
Miami Beach, Florida 33139
For the Lessee: Bernie Winer
Executive Director
999 11th Street
Miami Beach, Florida 33139
With a copy to: Richard Barreto Daniel Oates
Page 11 of 16
Chief of Police
1100 Washington Avenue
Miami Beach, Florida 33139
15. Paragraph 31 on page 7 of the Lease is hereby amended to reflect that the
Comprehensive General Liability Insurance coverage is increased from $300,000
to $1,000,000.00 per occurrence for bodily injury and property damage.
16. Paragraph 31, on Page 8 of the Lease, entitled "Limitation of Liability", is hereby
renumbered to reflect Paragraph 32, instead of 31.
17. Paragraph 33 is hereby added to the Lease, as follows:
33. Executive Director. PAL shall hire, at its own expense, an Executive Director,
who will manage and operate all PAL activities, including fundraising. Within sixty
(60) days from the Effective Date of this Second Amendment, Lessee shall
recommend a candidate for the Executive Director position, to replace the full-time
police officer currently assigned to this position. The new Executive Director, as
well as any subsequent Executive Directors for PAL, shall have significant
experience in non-profit organizational management, as well as in charity
fundraising. Additionally, the hiring of this new Executive Director, as well as any
subsequent Executive Directors, shall require the prior written approval of the City
Manager, on behalf of the Lessor, which approval shall- not be unreasonably
withheld. For good cause, and upon the request of the Lessee, the City Manager
may extend the time to secure a candidate for the Executive Director position,
which extension shall not be unreasonable withheld.
18. Paragraph 34 is hereby added to the Lease, as follows:
34. Designated Police Officer. The City shall continue to support PAL's youth
services to the community by assigning one full-time police officer, to be
selected by the City's Chief of Police,,at his or her reasonable discretion, and
who shall be charged with the specific assignment of supervising the police-
community programs, consistent with PAL'S mission of serving youth, excluding
fundraising activities ("Dedicated Police Officer"). During this assignment, the
Dedicated Police Officer shall report to the Chief of Police or his or her
designee. However, said Dedicated Police Officer may also be directed by
PAL's Executive Director, for day to day duties, so long as the Dedicated Police
Officer operates at all times within the rules of the City and the City's Police
Department, works primarily on programs for the youth, and does not engage,
directly or indirectly, in fundraising activities.
19. Paragraph 35 is hereby added to the Lease, as follows:
35. This Lease is made with the understanding that Lessee shall at all times,
throughout the term of this Lease, remain a Florida not-for-profit corporation,
pursuant to Chapter 617, Florida Statutes, the Florida Not For Profit
Corporation Act, and maintain a federal tax exemption pursuant to IRC
501(c)(4). In the event that Lessee ceases to be a not-for-profit corporation,
this Lease shall be subject to termination upon thirty (30) days written notice by
Lessor to Lessee. Notwithstanding the foregoing, Lessee shall be permitted to
operate the Fitness Center through PAL's related entity, Miami Beach Police
Athletic League Fitness Center, Inc., a Florida for-profit corporation, which
Page 12 of 16
Lessor has approved as a subtenant in subsection 7.8 of the Lease, subject to
the conditions set forth therein.
20. Paragraph 36 is hereby added to the Lease, as follows:
36. Revenues from PAL related activities, financial records and reports.
36.1 Revenues from PAL Related Activities. The Lessor herein
acknowledges that Lessee may derive additional revenues from a portion of the
approved uses it conducts on the premises (such revenue generating uses
may include, from time to time, events on the premises, specialty sales,
classes, lectures, and sale of food and beverages). Any revenue-generating
uses conducted from the .premises must be in accordance with the approved
uses in subsection 7.1 and consistent with this subsection 36.1 of the Lease.
All revenues received by Lessee in connection with such uses shall be
dedicated exclusively to help fund Lessee's management, operation, and
maintenance of the premises, as required herein. In the event that revenue(s)
pertaining to Lessee's operation exceeds expenses during a particular budget
year (in accordance with proiected annual operating budget submitted by
Lessee to Lessor, pursuant to subsection 36.2 herein), Lessor and Lessee
agree that such excess, if any, shall be applied by Lessee to support other
programming of Lessee. For purposes herein, "revenues" shall also be
deemed to include public/private grant funding, and unrestricted donations and
contributions received by Lessee specifically ear-marked toward Lessee's
operation, management and programming. No portion of the net earnings
resulting from the activities of Lessee on the premises shall inure to the benefit
of any private individual. Any revenue generating uses which are not
consistent with the approved uses in subsection T1, shall first be approved, in
writing, by the City Manager(prior to commencement of same).
36.2 Financial Records and Reports. Lessee shall maintain on the
premises, or at the location set forth in the Notices section of this Agreement,
or at such other place within Miami Dade County, Florida, true, accurate, and
complete records and accounts of all receipts and expenses for any and all
uses, services, programs, events, and activities (including, without limitation all
revenue generating uses) being conducted on the premises by PAL and MB
PAL Fitness Center, and shall give the City Manager, or his authorized
representative, access during reasonable business hours to examine and audit
such records and accounts.
Throughout the term of this Lease, and no later than one hundred and twenty
(120) days following the closing of City's fiscal year (October 1st — September
30th), Lessee shall provide the City Manager with an annual report of all uses,
services, programs, events, activities and operations (including, without
limitation, all revenue generating uses) ("PAL Programs") conducted upon the
premises by PAL and MB PAL Fitness Center, referencing the number of
persons participating in the PAL Programs. Simultaneously with said annual
report for the PAL Programs, Lessee shall provide Lessor with audited financial
statements for PAL and MB PAL Fitness Center, certified as true, accurate and
complete by Lessee and by its certified public accountant.
Page 13 of 16
36.3 The annual report for PAL and MB PAL Fitness Center shall also
include a Profit and Loss Statement (including gross revenues by categories
from all revenue sources and operating expenses by categories), and a
detailed year-end Balance Sheet.
21. Paragraph 37 is hereby added to the Lease, as follows:
37. Budget and Funding for PAL.
37.1 Throughout the term of this Lease, Lessee shall prepare and
present, commencing on August 1, 2015, and thereafter by August 1 of
each year, a proposed, detailed line item annual operating budget for
Lessee and MB PAL Fitness Center for the period from the next October 1
to September 30th, for review by the City Manager. Said budget shall
include a projected income and expense statement; projected year-end
balance sheet; statement of projected income sources; and application of
funds. Additionally, the budget shall also include, without limitation, the
following detailed projections for PAL and MB PAL Fitness Center:
a. Gross revenues by categories from all revenue sources and
revenue generating uses derived on the premises;
b. Operating expenses;
c. Administrative, labor and general expenses;
d. Marketing, advertising and promotion expenses;
e. Utility costs;
f. Regular repairs and maintenance costs; and
P. In addition to subsection (f) above, Lessee shall identify for the
Lessor, such long term capital repairs and maintenance of facility
infrastructure of which Lessee may be aware. In conjunction with this
subsection (g), Lessee agrees to allow Lessor and/or its authorized
representative(s) access to the premises, as the City Manager may deem
necessary, in his reasonable judgment and discretion and upon at least 24
hours prior notice (written or verbal), for the purpose of Lessor conducting
its own facility assessment.
37.2 Programmatic Plan. s Accompanying Lessee's proposed annual
budget shall be Lessee's programmatic plan for Lessee's upcoming fiscal
year, detailing the then-known (planned) PAL Programs (including an
programs for the MB PAL Fitness Center) and the number of users
anticipated.
22. Paragraph 38 is hereby added to the Lease, as follows:
38. Use of Off-Duty Police Surcharge. PAL shall receive $1.00 per hour of the off-
duty police surcharge fund ("Surcharge Contribution"), subject to funding
availability, during the term of this Lease. This Surcharge Contribution shall be
paid to PAL on a quarterly basis, upon PAL presenting a written request to the
Chief of Police or his or her designee. PAL may use the Surcharge
Contribution for the payment of the salary of the Executive Director, PAL's
Utility Expenses, PAL's programming, and other like operational expenses.
Page 14 of 16
23. Upon execution of this Second Amendment, the Memorandum of Understanding
("MOU"), dated as of October 29, 2007, shall be void ab initio. The parties
acknowledge that the only agreements in effect, relating to the premises, shall be
the Lease Agreement, the First Amendment and this Second Amendment. In
consideration of the mutual covenants contained in this Second Amendment,
receipt of which is hereby acknowledged, Pal, on its behalf and on behalf of its
successors and/or assigns, hereby releases and forever discharges, and expressly
agrees to indemnify and hold harmless the City of Miami Beach, its Mayor,
Commissioners, Officers, employees, Agents, Representatives and Members,
together with their successors and/or assigns, from any and all alleged or actual
claims, actions or damages which PAL shall or may have arising out of or relating
to the MOU or PAL's alleged failure to receive any benefits or privileges under the
MOU including, without limitation, the $1.00 Surcharge referred to therein.
24. In light of the longstanding relationship between the City and PAL and the benefits
which the PAL organization provides to the Miami Beach residents and community
at large, and further subject to PAL being in good standing under the Lease, it is
the intent of the Administration, within a year of the Effective Date of this Second
Amendment, to place an item for discussion before the City Commission, relating
to the possible approval of a new lease with PAL, effectively extending the current
lease term for a period of time in excess of ten (10) years. The parties understand
that the approval of said new lease by the City Commission, shall be in the City
Commission's sole discretion, and said approval, if granted at all, shall be subject
to any other approvals which may be required under the City Code or City Charter,
including, if required, the approval of said new lease by a majority of the voters in a
City-wide referendum.
25. Except as amended herein, all other terms and conditions of the Lease Agreement
and First Amendment shall remain unchanged and in full force and effect.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
Page 15 of 16
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment
to be executed by their appropriate officials, as of the date first entered above.
FOR LESSOR:
CITY OF MIAMI BEACH, FLORIDA
ATTEST:
By: By:
Rafael E. Granado, City Clerk Philip Levine, Mayor
BY:
Print Name:
FOR LESSEE:
MIAMI BEACH POLICE
ATHLETIC LEAGUE, INC.
ATTEST:
BY: By:
, Secretary President
BY:
Print Name:
F:ATTO/TORG/ASSET/PAL/SECONDAMENDMENTTOLEASEAGREEMENT6-25-2015Redlined Draft
Page 16 of 16
N,
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, ` A EXHIBIT
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Exhibit A-1
NORTH
Community Room Wrestling Room
(Shared) (Shared)
Recreation Restroom
>- -
(PARKS)
Stairs
Playtime Room
Hallway Elevator J . y
(Shared)
WEST Q _ (PARKS)
, Each maintains I EAST
computer stations Kitchen
v„ Recreation
• (Shared)
Office FOP Office
Q (PARKS)
PAL (PAL)
Executive Women's •
Office (PAL) Restroom
Gym Office (Shared)
Men's Restroom
(PAL)
*Needs ADA* (Shared)
• Fitness Center
(Cardio Room)
Fitness Center (PAL)
(PAL)
SOUTH
•
NORTH
Classroom Computer Lab
(Arts &,Crafts Room) (Shared)
(PARKS)
Classroom
(Guitar Room)
4Shared)
rn
WEST <
Cu EAST
Pension Office ° •
(PAL) Classroom
(Homework Room)
>- (Shared)
1 Q
Stairs Opening
Office (PAL)
Library (Shared) : Computer Lab
(Shared)
SOUTH