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98-22864 RESO RESOLUTION NO. 98-22864 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY AND THE ALLIANCE FOR MEDIA ARTS, INC. FOR A PORTION OF THE CITY-OWNED PROPERTY LOCATED AT 210- 2ND STREET, MIAMI BEACH, FLORIDA, FOR A NINE (9) MONTH PERIOD, BEGINNING ON SEPTEMBER 9, 1998, AND ENDING ON MAY 31, 1999. WHEREAS, the City has made a commitment to continue to support the cultural arts community; and WHEREAS, the Administration and the Alliance for Media Arts, Inc. have negotiated and agreed to the terms contained in the attached Lease Agreement, for a portion of the City-owned property located at 210-2nd Street; and WHEREAS, it has been determined that authorizing the lease of the premises to the Alliance for Media Arts, Inc. would support the cultural arts and be in the best interest of the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are authorized to execute the attached Lease Agreement between the City of Miami Beach and the Alliance for Media Arts, Inc., for a portion of the City-owned property located at 210 -2nd Street, Miami Beach, Florida, for a nine (9) month period, beginning on September 1, 1998, and ending on May 31, 1999. PASSED AND ADOPTED this 9th day of September, 1998. ATTEST: ~6 P ~CM ,/1 CITY CLERK MAYOR SR:HM:JD:rd APPROVED AS TO fORM & lANGUAGE & FOR EXECUTION T:\AGENDA\SEP0998\CONSENT\ALLIAN_R.HSM 8/28/98 1IIu1!fAtt ily Attorney J/jJ1 ~ITY OF MIAMI BEACH :I'TY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 tlp:\\ci, miami-beach. fJ, us .... . l~ (1 0 COMMISSION MEMORANDUM NO. _~..::LI=1J' TO: Mayor Neisen Kasdin and Members of the City Co mission DATE: September 9,1998 FROM: Sergio Rodriguez City Manager SUBJECT: A RESOLUT N OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY AND THE ALLIANCE FOR MEDIA ARTS, INC. FOR A PORTION OF THE CITY-OWNED PROPERTY LOCATED AT210 - 2ND STREET, MIAMI BEACH, FLORIDA ,FOR A NINE (9) MONTH PERIOD, BEGINNING ON SEPTEMBER 9,1998, AND ENDING ON MAY 31,1999. ADMINISTRATION RECOMMENDATION Adopt the Resolution. BACKGROUND In June of 1998, the Alliance for Media Arts, Inc. (AMA), a not-for-profit organization, approached the City and requested assistance in identifying City property which may be temporarily available for use as office space. The AMA is abbut to lose the use of the office space which is currently being used to house the administration portion of their Miami Beach operation. The AMA has requested the use of a small City-owned building located at 210 -2nd Street, which was previously leased to Women of Miami Beach, Inc (WOMB). ANALYSIS The AMA is in need of office space and has requested to temporarily lease the property for a period of nine (9) months. During the last five years, the City of Miami Beach has continued to pursue the existing policy to make available surplus space in publicly owned buildings for a nominal cost to not-for-profit organizations. Currently, the City has approximately 40,000 square feet of space, at six separate City-owned facilities, which is being used by approximately ten organizations. Some sites are leased for one dollar ($1.00) per year, others for a very nominal fee. These organizations include the Performing Arts Network (PAN), the Florida Dance Association (FDA), the Jewish Community Center (JCC), the University of Florida, and previously included the Florida Entertainment Commission and the Dade Marine Institute. Additionally, Miami-Dade County's Community Action Agency, which operates several programs on Miami Beach, also occupies space in one of the City's facilities. continued.... AGENDA ITEM DATE ~'7C <i~q-q ~ -2- During the past year, the Administration has modified the agreements to require organizations to pay for taxes, common area maintenance costs, and other costs associated with the leased premises, as is being required with this proposed Lease. Until such time as the City Commission determines that a different policy direction be taken, the Administration will continue to bring these Agreements to the City Commission for approval. The proposed Lease Agreement which begins September 9, 1998, and ends on May 31, 1999, provides for the AMA to pay a rental sum of one dollar ($1.00) for the full term, in addition to any sales, use or excise tax(es). The AMA will also pay for its proportionate share of operating expenses, which will be based on the square footage of the rentable area in the building, as well as all utilities within the leased premises including, but not limited to , electricity, water, gas, telephone and garbage disposal. CONCLUSION The Administration has determined that leasing the premises to the AMA would lend continued support to the cultural arts community and be in the best interest of the City of Miami Beach. The Administration recommends approval of the attached Lease Agreement between the City and the AMA for a portion of the City-owned property located at 210-2nd Street, for a nine (9) month period begifin~ September 9,1998, and ending May 31, 1999. SR:~JD:rd T:\AGENDA \SEP0998\CONSENT\ALLIAN_M.HSM 9/1/98 LEASE AGREEMENT TIllS LEASE, executed this ~ day of September, 1998 between CITY OF MIAMI BEACH, a Florida municipal corporation (Lessor) and the ALLIANCE FOR MEDIA ARTS, INC. (AMA), a non-profit Florida corporation (Lessee). 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 premises (the Premises) situated in the City of Miami Beach, County of Dade, State of Florida: The whole of the building, containing approximately 200 square feet of interior office space, approximately 24 square feet of interior closet space, a men's and a women's restroom facility, and covered patio area, all located at 21 0 -2nd Street on the parcel ofland legally described as Lots 1 and 2, Block 9, Ocean Beach Florida Subdivision, Plat Book 7 Page 38, Official Records of Miami-Dade County, Florida TO HAVE AND TO HOLD the Premises unto the Lessee, from the 9th day of September, 1998, to and including the 31st day of May, 1999, the Lessee yielding and paying to the Lessor the rental sum of one ($1.pO) dollar for the Lease term, as agreed by the parties hereto. Lessee shall also pay, as additional rent, all sales, real estate, use or excise tax(es) imposed, levied or assessed against the Premises or any other charge or payment required here by any governmental authority having jurisdiction there over , even though the taxing statute or ordinance may purport to impose such tax against Lessor. The payment of sales tax shall be made by Lessee concurrently with payment of the fixed minimum annual rental. Lessee agrees that it will pay its Proportionate Share of real estate taxes assessed against the Building and its Proportionate Share of operating expenses in the Building, as set forth and defined in Paragraph 2 of this Agreement. Lessee's Proportionate Share of real estate taxes will be paid upon demand accompanied by a copy of the paid tax bill. Lessee's Proportionate Share of operating expenses will be paid monthly (or as otherwise determined by Lessor) upon demand by 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. Page 1 of 8 The Lessee agrees to keep, conform to and abide by each of the following covenants which are hereby made conditions of this Lease: 1. To pay the rent set forth herein in advance, at the times and in the manner aforesaid, and should the rent herein provided at any time remain unpaid after same shall become due, the Lessor shall have such remedies as may be granted pursuant to the laws of the State of Florida. All rent payments shall be made to the Lessor at the following address: City of Miami Beach Finance Department, c/o Revenue Supervisor, 1700 Convention Center Drive, Third Floor, Miami Beach, Florida, 33139, or at such other place as the Lessor may, from time to time, designate in writing. 2. Operating Expenses shall include all costs associated with the maintenance and operation of the Premises, including utilities and Common Area Maintenance (CAM). Utilities and CAM shall include, but are not limited to, electricity, water, gas, telephone service and garbage disposal. 3. The Lessee accepts the Premises in their present "as is" condition, and is responsible for all interior modifications and maintenance, including entrance doors, windows, and screens. 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, which shall become Lessor's permanent improvements upon completion. Detailed plans for leasehold improvements shall be submitted to Lessor within thirty (30) days following execution of this Agreement by the parties hereto. The Lessee shall have the right to use any equipment, furnishing and fixtures left by Lessor on the Premises. Lessor represents that such equipment, furnishing and fixtures, are to be used in their "as is" condition, and that Lessee is solely responsible for maintaining same, at its sole cost and expense, throughout the duration of this Agreement. In the event any of the afotesaid items are lost, stolen or damaged, they shall be replaced or repaired at the sole cost and expense of Lessee, ordinary wear and tear excepted. Upon expiration of this Agreement, Lessee shall quietly and peacefully redeliver said equipment, furnishings and fixtures to Lessor. At its option, Lessor may take inventory of the Premises, including all improvements, equipment, furnishings, and fixtures at any time prior to the commencement of, or during the term of, this Lease. 4. Lessee agrees that any noise disturbance, inconvenience, disruption, failure of any facilities, the shutting off of light or access to the Premises, or any other nuisance or nuisances, caused by or due to any repairs, alterations, improvements, additions or construction by the Lessor, its agents, servants or employees to any part or portion of the building and for parking areas wherein the Premises are located, shall not be deemed or construed as a breach or violation of the peaceful possession of the Premises on the part of the Lessee. It is specifically further agreed that any such conditions shall not give rise to any abatement, rebate or diminution of the rent reserved herein, nor to any liability or responsibility by reason thereof on the part of the Lessee. Page 2 of 8 5. It is understood that any property left on the Premises at the expiration of the Lease, shall be considered abandoned and shall become and be deemed the property of the Lessor. 6. Notwithstanding Paragraph 3 above, at Lessor's discretion, any and all alterations or additions made by the Lessee to or in the Premises shall at the request of the Lessor, at the expiration of the term of this Lease or sooner termination thereof, be removed by the Lessee at its cost and expense and Lessee further hereby agrees in such event, to restore the Premises to their original condition as of the date of this Lease. 7. Lessee shall not assign Lessee's interest in this Lease, nor underlet the whole or any part of the Premises, nor use the same for any purpose other than for use as an administrative office for the Alliance for Media Arts, Inc. without first obtaining the written consent to such assignment or underletting, or to such change of purpose for the use of the Premises, from the Lessor, which consent shall be given, if at all, at Lessor's sole discretion. Lessee further covenants that the Premises will not be used for any purpose that will invalidate any policies of insurance now or hereafter written on the building on which the Premises are located, or will increase the rate of premium thereof. 8. Lessee shall use the Premises in accordance with all laws and ordinances now or hereinafter applicable; also to exercise all reasonable care in the use of halls, stairs, corridors, restrooms, and other fixtures and parts of the Premises used in common with other tenants in said building which may be necessary for the preservation of the property and comfort of the other tenants. 9. Lessee shall not permit or suffer any noise, disturbance or nuisance whatsoever on the Premises detrimental to same or annoying to the neighbors, and the Lessee acknowledges that the Premises have been received in thoroughly good order, tenantable condition and repair, of which the execution of this Lease, and taking possession hereunder, shall be conclusive evidence. Lessee further acknowledges that no representations as to the condition of the Premises have been made by the Lessor, or the Lessor's agent, and that no obligation as to the repairing, adding to, or improving the Premises has been assumed by the Lessor, and that no oral arrangements have been entered into in consideration of making this Lease, and that this Lease contains a full statement of the obligation of both parties hereto. 10. Lessee agrees to keep the interior of the Premises in good condition during the continuation of the term herein demised, and every part thereof, including the plumbing, doors and windows, and will keep the same in good, sound, clean condition and repair, ordinary wear and tear, fire, hurricane or other act of God alone excepted, and will not suffer or permit any strip or waste of the Premises. 11. Lessee shall permit the Lessor, or the Lessor's agent, at any reasonable time, to enter and inspect the Premises, and make repairs, if in the Lessor's sole judgment, the Lessor should elect to do so. Page 3 of 8 12. If the Lessee shall not pay the rent herein reserved at the time and in the manner stated, or shall fail to keep and perform any other condition, stipulation or agreement herein contained, on the part of the Lessee to be kept and performed, or if the Lessee shall suffer to be filed against the Lessee and involuntary petition in bankruptcy or shall be adjudged a voluntary or involuntary bankrupt or make an assignment for the benefit of creditors, or should there be appointed a Receiver to take charge of the Premises either in the State or Federal courts, or if the Lessee shall vacate or abandon the Premises prior to the end of the term hereof, then, in any such events, the Lessor may, at the Lessor's option and sole discretion, immediately terminate and end this Lease and re-enter upon the Premises, whereupon the term hereby granted, and at the Lessor's option, all of the Lessee's right, title and interest in this Lease shall end. The exercise of any options herein contained shall not be deemed to be exclusive and the Lessor shall at all times in the event of the Lessee's default hereunder, have such remedies as may be provided by the laws of the State of Florida. 13. Notwithstanding Paragraph 12 above, this Lease Agreement may be terminated without cause and for convenience of either party at any time during the term specified, upon furnishing thirty (30) days written notice to the other party. 14. If the Lessee shall abandon or vacate the Premises when the same is open for business and shall cease doing business in the Premises, then, at the option of the Lessor, this Lease shall immediately terminate. 15. The Lessee pledges and assigns unto the Lessor all the furniture and fixtures, goods and chattels of the Lessee, which may be brought or put on the Premises, as security for the payment of the rent herein reserved, and as additional consideration for this Agreement. 16. In the event the Premises, 'or any part thereof, shall at any time be destroyed or so damaged by fire or other elements so as to be unfit for occupancy or use by the Lessee, then and in that event, the Lessor shall have the option to terminate this lease or to repair and rebuild the Premises. In the event the Lessor elects to exercise the option to repair and rebuild, the same shall be done and completed within a reasonable time, but in no event shall such time be more than sixty (60) days from the date of the initial damage or destruction rendering the Premises untenantab Ie. 17. The Lessee shall not attach any signs to the Premises, or place any lettering on the plate glass windows, unless such signs, and such lettering, have been approved by the Lessor, and are in conformance with all applicable municipal, County, State and Federal laws. 18. At the expiration of the term hereof, the Lessee shall quietly and peaceably deliver the Premises to the Lessor in the same repair and condition in which they were received, ordinary wear and tear excepted. Page 4 of 8 19. The Lessor covenants that it will keep the exterior roof and walls of the building in which premises are situated, in good repair. The Lessee shall give to the Lessor seven (7) days written notice of needed repairs, and the Lessor shall have a reasonable time thereafter within which to commence said repairs. 20. The terms Lessor and Lessee as herein contained shall include the singular and/or plural, masculine, feminine, and/or neuter, and heirs, successors, personal representatives and/or assigns of the parties hereto. 21. The failure of the Lessor in one or more instances to insist upon strict performance or observance of one or more of the covenants or conditions hereof or to exercise any remedy, privilege or option herein conferred upon or reserved to the Lessor, shall not operate or be construed as a relinquishment or waiver for the future of such covenant or condition or of the right to enforce the same or the exercise such privilege, option, or remedy, but the same shall continue in full force and effect. The receipt by the Lessor of rent, or additional rent, or any other payment required to be made by the Lessee, or any part thereof, shall not be a waiver of any other additional rent or payment then due, nor shall such receipt, though with knowledge of the breach of any covenant or condition hereof, operate as or be deemed to be a waiver of such breach, and no waiver by the Lessor of any of the provisions hereof, or any of the Lessor's rights, remedies, privileges or options hereunder shall be deemed to have been made unless made by the Lessor in writing. If the Lessor shall consent to the assignments of this Lease or to a subletting of all or a part of the Premises, no further assignment or subletting shall be made without the written consent of the Lessor first obtained. No surrender of the Premises for the remainder of the term hereof shall be valid unless accepted by the Lessor in writing. 22. Lessee represents and warrants that there are no claims for broker's commissions or finders' fees in connection with the execution of this Lease. 23. Lessee shall not stock, use or sell any article or undertake any activity in the Premises which may be prohibited by Lessor's insurance policies or which will increase any insurance rates or premiums for which Lessor is responsible. 24. Should any mechanics' 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 (20 days after the filing of such lien.) 25. In the event the Premises are not ready for occupancy by the Lessee upon the commencement date hereof, for any reason whatsoever, including the fact that the building in which the Premises are located has not been completed or sufficiently completed to make the Premises ready for occupancy, the Lessor shall have no liability to the Lessee by reason of the Lessor's inability to deliver possession. In such event, the rent set forth herein shall abate until such time as the Premises are ready for occupancy and the commencement date of the term hereof Page 5 of 8 shall be deemed to commence upon such date, provided, however, that notwithstanding such commencement date, this Lease shall expire on the termination date set forth on Page 1 hereof. 26. In the event that it shall become necessary for Lessor to employ the services of an attorney to enforce any of its rights under this Lease or to collect any sums due to it under this Lease or to remedy the breach of any covenant of this Lease on the part of the Lessee to be kept or performed, regardless of whether suit be brought, Lessee shall pay to Lessor such fee as shall be charged by Lessor's attorney for such services. Should suit be brought for the recovery of possession of the Leased Premises or for rent or any other sum due Lessor under this Lease, or because of the breach of any of Lessee's covenants under this Lease, Lessee shall pay to Lessor all expenses of such suit and any appeal thereof, including a reasonable attorney's fee. 26. Radon is a naturally occurring radioactive gas that, when it is accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of Radon that exceed Federal and State guidelines have been found in buildings in Florida. Additional information regarding Radon and Radon testing may be obtained from your County Public Health Unit. 27. Notice shall be deemed properly given hereunder when made in writing and deposited in the United States certified or registered mails, with sufficient postage prepaid thereon to carry it to its addressed destination; and the said notices shall be addressed as follows: For the Lessor: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 With a copy to: City Attorney 1700 Convention Center Drive 4th Floor Miami Beach, Florida 33139 For the Lessee: Alliance for Media Arts, Inc, 927 Lincoln Road, #119 Miami Beach, Florida 33139 or to such other address as shall from time to time be supplied in writing by any party to the other. 28. The Lessee shall indemnify, defend and hold Lessor harmless from any and all claims, liability, losses, and causes of action which may arise out of Lessee's use of the Premises under this Agreement and shall pay all claims and losses of any nature whatsoever in connection Page 6 of 8 therewith and shall defend all suits, in the name of Lessor, and shall pay all costs (including attorney's fees) and judgments which may issue thereon. This indemnification shall not be limited in any way by the type or amount of insurance carried by Lessee. Lessee shall carry and maintain in full force and effect at all times during the term of this Agreement the following insurance coverages: a. Comprehensive General Liability in the minimum amount of Five Hundred Thousand Dollars($5oo,000) per occurrence for bodily injury and property damage. This policy must also contain coverage for premises operation, products and contractual liability . b. The City must be named as an additional insured on the policies required above. All Certificates of Insurance shall state: This insurance coverage is primary to all other coverages provided by the City of Miami Beach. c. Workers' Compensation and Employers' Liability to meet the statutory requirements of the State of Florida, d. All insurance policies shall be issued by companies authorized to do business under the laws of the State of Florida and must have a rating ofB+:VI or better per A.M. Best's Key Rating Guide, latest edition. e. Lessee shall furnish original certificates of insurance, evidencing the required coverage, and receive approval of same, prior to the commencement of operations. f. Certificates of Insurance shall be approved by the City's Risk Manager and kept on file in the Finance Department, Insurance and Safety Division, Third Floor, City Hall. 29. Lessor desires to enter into this Lease only if in so doing Lessor can place a limit on the Lessor's liability for any cause of action for money damages due to an alleged breach by the Lessor of this Lease, so that its liability for any such breach never exceeds the sum of $1,000,00. Lessee hereby expresses its willingness to enter into this Lease with Lessee's recovery from Lessor for any damage action for breach of contract to be limited to a maximum amount of the amount of $1,000.00. Accordingly, and notwithstanding any other term or condition of this Lease, Lessor hereby agrees that it shall not be liable to the Lessee for damages in an amount in excess of $1,000.00, for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the Lessor by this Lease. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon City's liability as set forth in Florida Statutes, Section 768.28. 30. Any litigation between the parties, arising out of, or in connection with this Lease, shall be initiated in the court system of the County of Miami-Dade, State of Florida. Page 7 of 8 IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year stated above. Signed, sealed and delivered in the presence of: Attest: (Seal): SR:HM:JD:rd LESSOR: By: CITY OF MIAMI BEACH vM Mayor ~~} PClA~ City Clerk By: LESSEE: By: By: ~~~ 8eeretary ~ TREASURER T:\AGENDA\SEP0998\CONSENT\ALLIAN A.HSM 8/28/98 APPROVED AS TO fORM & LANGUAGE & fOR EXECUTION ~ Page 8 of 8 ~