2017-29710 Reso RESOLUTION NO. 2017-29710
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE; AND AUTHORIZING THE ADMINISTRATION TO
NEGOTIATE A NEW LEASE AGREEMENT BETWEEN THE CITY OF
MIAMI BEACH AND COLONY THEATRE CAFE, INC. D/B/A
SEGAFREDO, FOR THE USE OF APPROXIMATELY 1,371 SQUARE
FEET OF CITY-OWNED PROPERTY LOCATED AT 1040 LINCOLN
ROAD, MIAMI BEACH FLORIDA.
WHEREAS, RFP No. 19-07/08 was issued on February 14, 2008, with an
opening date of April 18, 2008; and
WHEREAS, on January 28th, 2009, the Mayor and City Commission adopted
Resolution No. 2009-26994, approving a lease agreement (Lease) between the City of Miami
Beach (Landlord) and Colony Theater Cafe, Inc. d/b/a Segafredo (Tenant), for the use of
1,371 square feet of City-owned property located at 1040 Lincoln Road, Miami Beach,
Florida; and
WHEREAS, the initial Lease term was for a period of three (3) years,
commencing November 1, 2008 and ending October 31, 2011, with two (2) additional three
(3) year renewal terms; and
WHEREAS, Tenant has exercised all of its renewal options, and the Lease
Agreement is due to expire on October 31, 2017; and
WHEREAS, Tenant has requested an extension of the Lease; and
WHEREAS, the Administration submitted Tenant's renewal request to the
Finance and Citywide Projects Committee ("FCWPC") at its December 16, 2016 meeting, and
the FCWPC recommended in favor of negotiating a new lease agreement with Tenant.,
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, 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 authorize the Administration to negotiate a
new lease agreement with Colony Theatre Café Inc., d/b/a Segafredo, for the use of
approximately 1,371 square feet of City-owned property located at 1040 Lincoln Road, Miami
Beach Florida.
PASSED and ADOPTED this 1/ day of L 441/ 2017.
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: January 11, 2017
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 COMMITTEE; AND AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE A NEW LEASE AGREEMENT BETWEEN THE CITY OF MIAMI
BEACH AND COLONY THEATRE CAFE, INC. D/B/A SEGAF REDO, FOR THE USE
OF APPROXIMATELY 1,371 SQUARE FEET OF CITY-OWNED PROPERTY
LOCATED AT 1040 LINCOLN ROAD, MIAMI BEACH FLORIDA.
RECOMMENDATION
Adopt the Resolution.
BACKGROUND
On January 28th, 2009, the Mayor and City Commission adopted Resolution No. 2009-26994 approving
a new lease agreement (Lease Agreement) between the City and Colony Theater Café , Inc. d/b/a
Segafredo (Tenant), for the use of 1,371 square feet of City-owned property located at 1040 Lincoln
Road, Miami Beach, Florida (Premises). The initial lease term was for a period of three (3) years,
commencing November 1, 2008 and ending October 31, 2011, with two (2), three (3) year renewal
terms.
ANALYSIS
Colony Theatre Café is a full service restaurant and bar with an active sidewalk café permit
authorized for forty-eight (48) tables and one hundred eighty-three (183) seats on Lincoln Road.
The sidewalk café permit is separate from the Lease Agreement for the Premises; however, the
City receives percentage rent from the combined operations.
The lease was extended for both renewal terms with the second and final renewal term expiring
October 31, 2017. The basic terms of the current lease are as follows:
Premises: 1040 Lincoln Road
Initial Term: Three (3) years commencing November 1, 2008 and
ending October31, 2011
Renewal Terms: Two (2) renewal terms for three (3) years each (second
and final renewal term expires October 31, 2017)
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Size : The total lease area consists of approximately 1,371
square feet delineated as follows:
769 SF restaurant/cafe space
100 SF Colony Theatre storage space
196 SF Colony Theatre lobby food & beverage
concession
306 SF off-site dumpster/storage area
Since the 196-square foot lobby concession is intended
only for Colony Theatre patrons, and since the 306-square foot
dumpster/storage area is located off-site, the remaining 869 square feet
(769 SF cafe plus 100 SF storage) is an adjusted square footage which
more accurately reflects the revenue generating area occupied by Tenant.
Rental Rate: The greater of Base Rent, in the amount of $217,174 for
contract year 2015/16; or 6.5% of Gross Receipts (excepting allowable
deductions), in the amount of$218,958 for contract year 2015/16.
The following chart illustrates the rent revenue figures for
the most recent four(4) contract years:
Contract Year 2012/13 2013/14 2014/15 2015/16
Gross Receipts $3,930,036 $3,950,755 $3,804,587 $3,368,585
Base Rent $205,809 $230,949 $222,251 $217,174
Percentage Rent $49,643 $25,850 $25,047 $1,784
Total Rent $255,452 $256,799 $247,298 $218,958
Rent per Square Foot(869 SF) $294 $296 $285 $252
FINANCE & CITYWIDE PROJECTS COMMITTEE
The Administration presented the above information at the December 16, 2016 Finance and
Citywide Projects Committee ("FCWPC") meeting. The FCWPC considered this matter and
recommended in favor of negotiating a new lease agreement with Colony Theatre Café.
CONCLUSION
The Administration recommends accepting the recommendation of the Finance and Citywide
Projects Committee.
Legislative Tracking
Tourism, Culture and Economic Development
ATTACHMENTS:
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Description
o Resolution
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