2017-30009 ResolutionRESOLUTION NO,
2017-30009
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER AND CITY
ATTORNEY'S OFFICE TO PROCEED WITH, AND TAKE ANY AND ALL
REQUIRED ACTIONS RELATIVE TO, THE CONDOMINIUMIZATION OF THE
CITY-OWNED PROPERTY LOCATED AT 1040 LINCOLN ROAD, MIAMI BEACH,
FLORIDA A/K/A THE COLONY THEATRE BUILDING.
WHEREAS, the City is the owner of the property located at 1040 Lincoln Road, Miami
Beach, Florida a/k/a the Colony Theatre building, consisting of approximately 9,000 square feet of
land with a four story building consisting of approximately 16,687 square feet; and
WHEREAS, the City and Miami Theater Hub, Inc., a Florida not-for-profit corporation, d/b/a
Miami New Drama are parties to a Management Agreement for the management of the Colony
Theatre; and
WHEREAS, the City and Colony Theatre Cafe, Inc„ a Florida corporation, d/b/a Beg redo
are parties to a Lease Agreement, for the operation of a cafe; and
WHEREAS, as a municipal cultural facility, the building should be exempt from having to
pay property taxes, comparable to other municipally-owned facilities and buildings that serve a
public purpose; and
WHEREAS, to ensure the continued tax exempt status of the municipal cultural facility, the
cafe portion of the building should be separated via a condominiumization process; and
WHEREAS, the City will retain full ownership of the condominium unit(s), with the
Mayor and Commissioners serving as the condominium association board,
NOW, THEREFORE, BE IT DULY RESOLVED THAT THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission
hereby authorize the City Manager and City Attorney's Office to proceed with, and take any and all
required actions relative to, the condominiumization of the City-owned property located at 1040
Lincoln Road, Miami Beach, Florida a/k/a the Colony Theatre building.
PASSED and ADOPTED this (2) df
AT S
Att
RAFAEL E. GRANADO, C
FAR1100\$ALL15CON\SALLMSSET\C
:rhea% ft3V6ond
••••7. .4"
OR
16ny Reso (08.22-17),cloox
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1 2r /7
Ity Attorn
fe
MIAM
BEACH
Resolutions C7 AJ
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 13, 2017
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER AND CITY
ATTORNEY'S OFFICE TO PROCEED WITH, AND TAKE ANY AND ALL
REQUIRED ACTIONS RELATIVE TO THE CONDOMINIUMIZATION OF THE CITY-
OWNED PROPERTY LOCATED AT 1040 LINCOLN ROAD, MIAMI BEACH,
FLORIDA,A/K /ATHE COLONY THEATRE BUILDING.
RECOMMENDATION
Adopt the Resolution.
BACKGROUND
The City owns the property located at 1040 Lincoln Road, Miami Beach, Florida, a /k/a the Colony
Theatre building. The property consists of approximately 9,000 square feet of land with a four story
building consisting of approximately 16,687 square feet.
The City and Miami Theater Hub, a Florida not -for- profit corporation, Inc. d /b /a Miami New
Drama, are parties to a Management Agreement for the management of the Colony Theatre. The
Colony Theatre is a municipal cultural facility and consists of approximately 16,000 square feet
located in a portion of the Colony Theatre building. Additionally, the City and Colony Theater Cafe,
Inc., a Florida corporation, d /b /a Segafredo Zanetti Espresso, are parties to a Lease Agreement, for
the operation of a cafe, consisting of approximately 1,000 square feet, located within a small portion
of the Colony Theatre building.
ANALYSIS
As a municipal cultural facility, the building should be exempt from having to pay property taxes,
comparable to other municipally -owned facilities and buildings that serve a public purpose. So as to
ensure the continued tax exempt status of the municipal cultural facility, the cafe portion of the
building should be separated via a condominiumization process. This process has been implemented
in the past for other City -owned municipal facilities that also contain retail and /or commercial tenants,
including 1701 Meridian Avenue and 1661 Pennsylvania Avenue. Under this process, property taxes
are levied only for the retail /commercial units, which in some cases have been subdivided to
accommodate tenant needs. The retail tenants are responsible for the payment of property taxes for
the condominium unit they occupy. The retail tenant for 1040 Lincoln Road is, likewise, responsible
for any property taxes levied for their cafe space.
The City will retain full ownership of the condominium unit(s), with the Mayor and Commissioners
serving as the condominium association board.
Page 758 of 2353
The City Attorney's office will prepare and submit the necessary Declaration of Condominium
applications with the State of Florida. It is anticipated that the only cost associated with the
condominiumization will be the cost to obtain the required surveys and the filing and recording fees
(estimated not to exceed $10,000).
CONCLUSION.
The Administration recommends that the Mayor and City Commission adopt the Resolution
approving the condominiumization of 1040 Lincoln Road.
Legislative Tracking
Tourism, Culture and Economic Development
ATTACHMENTS:
Description
Reso
Page 759 of 2353