405-2002 RDA Reso
RESOLUTION NO. 405-2002
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, AUTHORIZING A ONE YEAR
RENEWAL OF THE MANAGEMENT AND LEASING AGREEMENT WITH
THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION, IN
ASSOCIATION WITH THE FELENSTEIN KONIVER STERN REALTY
GROUP, FOR THE MANAGEMENT AND LEASING OF THE RETAIL
COMPONENT OF THE ANCHOR SHOPS AND PARKING GARAGE,
DATED JANUARY 1, 2001, IN ACCORDANCE WITH THE PROVISIONS
SET FORTH IN SECTION 9.1 OF SAID AGREEMENT.
WHEREAS, on January 10, 2001, the RDA Board authorized the Administration to enter
into a Management and Leasing Agreement (Agreement) with the Miami Beach
Community Development Corporation (MBCDC) and Felenstein Koniver Stern Realty
Group, (FKS), the sole bidder in response to Request for Proposals No. 124-99/00 for
the Leasing and Management of the Retail Component of the Anchor Shops and
Parking Garage (Anchor Shops); and
WHEREAS, pursuant to Section 9.1 of the Agreement, the initial term of the Agreement
was for a period of approximately one (1) year, commencing on January 1,2001 and
expiring on December 31,2001, to closely coincide with the expiration of Quik Park's
Contract to manage the parking component of the Anchor Shops; and
WHEREAS, at the September 20, 2001, RDA Board Meeting, the Board extended Quik
Park's Contract for another year, to December 15, 2002; and
WHEREAS, since the Agreement also provides for a one (1) renewal option, the
Administration recommends exercising the option, thereby providing the opportunity to
potentially combine the management of both the parking and retail components into one
package offering, upon expiration of the two Agreements in December, 2002; and
WHEREAS, the Agreement, provides for a Management Fee of $37,500 per year, or
$3,125 per month and a leasing commission for any new leases procured by FKS,
calling for 6% of the minimum rent for the first five years, decreasing to 4 % for the next
five years and 3% for any remaining term on the lease; and
WHEREAS, extending the Agreement provides the RDA with continued on-site
presence and accountability and extensive local and national leasing experience at a
reasonable cost.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
Members of the Miami Beach Redevelopment Agency hereby authorize a one (1) year
extension to the Management and Leasing Agreement with the MBCDC in association
with the FKS, for the management and leasing of the retail component of the Anchor
Shops, dated January 1, 2001, in accordance with the provisions set forth in Section 9.1
;11
of the Agreement. The Chairman and Secretary are hereby authorized to execute such
documents as may be necessary to effectuate the intent of this Resolution.
PASSED and ADOPTED this ',9th day of January; . ~ 2
~~~~
SE{:RETARY
APPROVEDMTO
FORM&LANGUAG8
& FOR
T:\AgendaIJ0n92002\RDAIMBCDCMGTR..o.doc
/-3~tT<.
",.,~!!"",~"~"""1lj~!.,'",,,,,.,,,..I.J, A. J,,~." ,Ii, ;~.!i,. !." ,I",..,""",,,,,,,,,,, . "m'~.'~_~." '.."" "" . !',~"". ,...J.., .,tN,.. ,....., ,,' , ,,- . ",.""". , ,.",41"",.." ,.,,4111SJ. ~..."., . ,),,"'~! .. !
MAMI BEACH REDEVELOPMENT AGENCY~'
BOmD ITEM SUMMARY
~
~
.#;-
Condensed Title:
A Resolution authorizing a one (1)-year extension to the Management and Lease Agreement with the
Miami Beach Community Development Corporation (MBCDC) and Felenstein Koniver Stem Realty Group,
(FKS), for the management and leasing of the Retail Component of the Anchor Shops and Parking
Garaae(AnchorShoDs),
Issue:
On January 10, 2001, the RDA Board authorized the Administration to enter into a Management and Leasing
Agreement (Agreement) with MBCDC and FKS, the sole bidder in response to Request for Proposals No.
124-99/00 for the Leasing and Management of the Anchor Shops. The initial term of the Agreement was
for a period of approximately one (1) year, commencing on January 1, 2001 and expiring on December 31,
2001, to closely coincide with the expiration of Quik Park's Contract to manage the parking component of
the Anchor Shops. At the September 20, 2001, RDA Board Meeting, the Board extended Quik Park's
Contract for another year, to December 15, 2002. Since the Management and Leasing Agreement also
provides for a one (1) renewal option, the Administration recommends exercising the option, thereby
providing the potential opportunity to combine the management of both the parking and retail components
into one package offering, upon expiration of the two Agreements in DeCember, 2002.
Item Summary/Recommendation:
The Administration recommends extending the Agreement for one (1) year.
Advisory Board Recommendation:
I
Financlallnfonnatlon:
Amount to be expended:
$37,500
Source of
Funds:
Anchor
Shops
retail
revenue
Finance Dept.
$37,500
AGENDA ITEM
DATE
3A
{-9-o2-
1
MIAMI BEACH REDEVELOPMENT AGENCY
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
To:
From:
Subject:
REDEVELOPMENT AGENCY MEMORANDUM
Chairman and Members of
the Miami Beach Redevelopment Agency
Jorge M. Gonzalez ,,~
Executive Director 0"- 0
Date: January 9, 2002
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, AUTHORIZING THE CHAIRMAN
AND SECRETARY TO EXECUTE A ONE (1) - YEAR RENEWAL OF THE
MANAGEMENT AND LEASING AGREEMENT (AGREEMENT) WITH THE
MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION (MBCDC),
IN ASSOCIATION WITH THE FELENSTEIN KONIVER STERN REALTY
GROUP (FKS), FOR THE MANAGEMENT AND LEASING OF THE
RETAIL COMPONENT OF THE ANCHOR SHOPS AND PARKING
GARAGE (ANCHOR SHOPS), DATED JANUARY 1, 2001, IN
ACCORDANCE WITH THE PROVISIONS SET FORTH IN SECTION 9.1 OF
THE AGREEMENT.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On January 10, 2001, the RDA Board authorized the Administration to enter into a
Management and Leasing Agreement (Agreement) with the Miami Beach Community
Development Corporation (MBCDC) and Felenstein Koniver Stern Realty Group, (FKS),
the sole bidder in response to Request for Proposals No. 124-99/00 for the Leasing and
Management of the Retail Component of the Anchor Shops and Parking Garage (Anchor
Shops).
Pursuant to Section 9.1 of the Agreement, the initial term of the Agreement was for a
period of approximately one (1) year, commencing on January 1, 2001 and expiring on
December 31, 2001, to closely coincide with the expiration of Quik Park's Contract to
manage the parking component of the Anchor Shops. At the September 20, 2001, RDA
Board Meeting, the Board extended Quik Park's Contract for another year, to December
15,2002. Since the Management and Leasing Agreement also provides for a one (1)
renewal option, the Administration recommends exercising the option, thereby providing
the potential opportunity to combine the management of both the parking and retail
components into one package offering, upon expiration of the two Agreements in
December, 2002.
The Management and Leasing Agreement, provides for a Management Fee of $37,500
per year, or $3,125 per month and a leasing commission for any new leases procured by
FKS, calling for 6% of the minimum rent for the first five years, decreasing to 4 % for the
next five years and 3% for any remaining term on the lease. No leasing commissions are
paid for renewals, relocations and/or expansions of the existing leases as is commonly
accepted practice. Since the Anchor Shops were fully leased at the time the Management
and Leasing Agreement was executed, no commission fees have been paid to FKS.
As the Property Manager for the Anchor Shops, MBCDC's scope of services includes but
is not limited to:
. Procuring and negotiating leases for available space as well as for space that
becomes available upon expiration and/or termination of exiting leases;
. Collecting and remitting lease revenues;
. Providing a means of communication for retail tenants to address and/or resolve
matters pertaining to their respective leases, such as, but not limited to,
maintenance or repair concerns;
. Providing timely response to tenant issues and concerns;
. Conducting daily on-site inspections to ensure that tenant spaces and common
area spaces are maintained to a standard consistent with a first class retail
center;
. Coordinating with the City's Property Management Division on maintenance
issues affecting the facility.
. Communicating and coordinating with tenants to secure their respective spaces,
in the event of a hurricane and/or any other citywide emergency;
. Coordinating and facilitating any tenant improvements involving new and/or
existing leases;
. Maintaining a system of accounting, bookkeeping and reporting that will
accurately reflect all income received and disbursements made in connection
with the operation and maintenance of the Anchor Shops.
. Affecting a good neighbor policy through involvement with the Washington
Avenue Taskforce.
The Property Manager's primary role is to maintain the Anchor Shops in a manner
consistent with a first class retail establishment. Daily on-site visits serve to ensure that
all common areas and sidewalks are kept clean and free of any unsightly conditions such
as graffiti. The Property Manager actively coordinates with Quik Park and the City's
Property Management Division to identify and track items in need of replacement and/or
repair. Since the tenants are responsible for maintaining their own space, the Property
Manager enforces that this is done as well as provides assistance, as needed, to facilitate
and/or expedite repairs. Additionally, any space which becomes vacant falls under the
responsibility of the Property Manager to maintain and show to prospective new tenants.
In accordance with the Management Agreement, a proposed Budget is also being
submitted for approval at this time. The Budget has been structured to show projected
income from the existing leases and operating expenses which provide a breakdown of
the proposed management fee spread on a monthly basis. A cushion of $7,800 has been
allocated for maintenance and repair related reimbursables for the year. The Leasing
Commission line item reflects remaining brokerage fees due in connection with the
Fuddruckers Lease for which the RDA Board appropriated funding on May 10, 2000.
The Management and Leasing Agreement provides the RDA with on-site presence and
accountability and extensive local and national leasing experience for a negligable cost.
JMG/~:kOb
T:\Agenda\January 9, 2002\ROA\Anchor1eue.doc
gggSgggZ gggggggg ggg ::;
gu~~g~~ n~uu~ ~oo i
10 0.......0 "N ..
J ~~!~~g~i ~a;:l..::lZl;:ll;; ~i~ ill
.. .. .,
....... M- .. ..
5l5lg~gg5lill gggggggg ggg ~
u~~~gu i"':lri:g,..:...:.nlri 19~-
J . . _ _.C\l.. !a~ifla~ :;:
t;~';~:;;..:8 ., !
.... .. .. ..
5l5lg~gg5lill gggggggg ggg ill
i ~~~~~~~i c:(l~~~&~= 19~ I
. _ _ . .r.t. . . ~ ~;: ~~
t;~:t;~t;;~ .,
.... .. .. ..
5l5lg~gg5lill gggggggg ggg ~
N~gN~gU i"":ui~"":"':U'i.n 19~
; <I. .-.li\",,, . _ la;iua~ N
0
tt~;q~.S!t;;51 ., '#
.... .. .. .. ..
5l5lg~gg5lill gggggggg ggg ill
J ~~~~~gu j"':Iri:g"':"':1ri1ri l:!ilii :!
. ..... ......"'!.. . !a..Ha~ NO ...
:;;a:!;;!t;.;51 N,n ;{
.... .. .. :;::; ..
5l5lggg5lgill gggggggg ggg ill
I u~~~~U j.... "'8"""" 11)." lli~ i
H..i~a~ ....
~S~;!~~! ., !
.. ..
5l5lg~g5lgill gggggggg ggg ill
~ g~~~~~~~ ~~~:s~~~~ gg~ i
t;;sa~~~~i tit Zl;;~ ~::r a .,- !
.. ..
W 5l5lg~g5lgill gggggggg ggg ill
~ 1 u~~~~u j....lnlS.........Il)!ft gg~ i
la;i~n2~ a "-
tiS:f;~~~! ., !
< .. .. .. ..
CI
CI"
ZZ
;OW 5l5lg~g5lgill gggggggg ggg ill
!:iill J g~~~~~U l"":lrii,..:...:"nlri gg.. i
...II! !a:;i~S,i~ $ J:;
ti!:i tia!;g~~i ., i
.. .. .. .. ..
s~
",II 5l5lg~g5lgill gggggggg ggg ill I
..w
l!~ i u~~~~~~ l"':Il'i:g...:...:ltilri 19s }
la;itaa~ -'
fU :iat~~~;;! .. .. i!!
~
Ii 2
"
5l5lggg5lgill gggggggg ggg ill U
",CI N~gN~":&i~ i"':lrilS"':"':llilri l:!ilii ~
z~ I !a;;i~a~
<Ill <I _5l,,~., NO
:~ ~~t;~tl~! ~S N ~~
.. .. .. :;
0..... p
"'-
Ill:! 5l5lg8g5lgill gggggggg ggg ill ~~
15 II! u~~~~U 1....1O:g.........,,1I1 lli~. . :110:
'" J !a;i~a~ ~a
0
Z t;;=~~~~;;:J. ., !
< .... .. .. .. c _
- c
II
5l5lg8g5lgill gggggggg ggg ill
1 N~gN"":~~ C:(!~i~a;~= 19.. i h
<I. .., li\ I;;.~. . . a Zl..;:I:;:Zl;< ~ 1:11
:;~~;;~;! .. .. ! -::is
~il~
~EJ
i~hi ~~j
!~
~""
"'~rl J liiaJ Hs
h~l~i~J i ~.~
" 1! 310& u.~.l!
I ~ I I - B
lS g i i ~!H ~H
Ui~pi ~ 3 ~! i 01 ! Ii'. .s
=~Ei c li ~
nig ~H ~ ~ :I1li Jl:L !~H ~ :11:110:
en -:.~.E c" lih~~ci~ ~tie
j~H!U~ I P es ~ " _il~~ .. I
!' !ii .! H~~ i