411-2002 RDA Reso
RESOLUTION NO: 411-2002
A RESOLUTION BY THE CHAIRMAN AND MEMBERS OF THE
REDEVELOPMENT AGENCY APPROVING IN CONCEPT AN
ASSIGNMENT OF LEASE FROM FLAGLER SYSTEM
MANAGEMENT, INC., TO CDP CAPITAUMONTREAL MODE
INVESTISSEMENTS, IN CONNECTION WITH SUITE "B/C" IN
THE ANCHORS SHOPS AT SOUTH BEACH.
WHEREAS, Flagler System Management, Inc., which operates Absolutely Suitable
in the Anchor Shops, is in the process of negotiating with COP Capital/Montreal Mode
Internationallnvestissements, to sublet or assign its space for the remaining term of the
Lease; and
WHEREAS, Montreal Mode International (MMI), member of COP Capital, invests in
the expansion of the Canadian fashion industry, focusing on the creation, management,
marketing and distribution of clothing products, including swimwear and related
accessories; and
WHEREAS, COP Capital is the fund manager for the Caisse de depOt et placement
du Quebec (COP) and manages over $100 billion in assets; and
WHEREAS, based on financial statements, operating reports and other pertinent
information typically requested of new tenants, the Administration is satisfied that the
company is sound and would continue to operate a first class business; and
WHEREAS, based on preliminary negotiations to date, MMI is not only seeking to
assume Flagler System's Lease, of which approximately six years remain, but may be
interested in extending the Lease term; and
WHEREAS, as part of the ongoing negotiations, MMI is seeking assurance from the
ROA that it would be supportive of such a transition, either in the form of a Sublease or an
Assignment of Lease by Flagler System.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
Members approve in concept an Assignment of Lease from Flagler System Management,
Inc., to COP Capital/Montreal Mode Investissements, in connection with Suite "B/C" in the
Anchor Shops at South Beach.
APPROVED AS TO
FORM & LANGUAG
& FOR EXECUTION
PASSED and ADOPTED this 20th day of March, 2002.
. ATTEST:
All UI[L~/'~ - 1-/y.-t:f)/'
~ ea.
General Counsel
.;t~~-
VIA Federal Express
February 22, 2002
Ms. Christina M. Cuervo
Assistant City Manager
Miami Beach Redevelopment Agency
1700 Convention Center Orive
Miami Beach, Florida 33139
RE: Anchor Shops (Absolutely Suitable)
Oear Ms. Cuervo:
With regards to the abovenoted property, we are in the process of negotiating with COP Capital
(COP) for that company to become a sub-tenant or assignee of our lease dated June 8, 1998. The
possibility of this transaction was previously discussed with Kent Bonde. I understand he will not
return until March 6, 2002.
!
Enclosed is COP's latest Annual Report and Operations Report, both for the year 2000 Significant
information on COP is available through their website at www.cdpcapital.com.Also.Mr. Bonde
may have spoken to Mr. Alain Chayer of COP, who visited South Beach last week as part of their
due diligence. Please feel free to contact Mr. Chayer for any additional information you may need
to evaluate COP. The business to be conducted in this location will be swimwear and related
accessories.
Flagler System Management, Inc. formally requests that COP Capital! Montreal Mode
Investissements be approved as a sub-tenant or assignee to our lease dated June 8, 1998. Your
approval, in writing, is requested as soon as possible. Timing is of the essence as the sub-lease or
assignment is a significant element of our discussions with COP. My direct telephone number is
(561) 659-8430 and I look forward to hearing from you with a favorable response.
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Yours very trol y,
Alex Gilmurray
Chief Financial Officer
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Enclosures
Pc: Mr. Paul N. Leone, President
ONE SOUTH C~~Jlli?NZoo.er;\J'~J'fIt<e~iJeRf,l~~~li~\i~g.:tPHONE (561) 655-6611 .
FACSIMILE (561) 659-8403
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CllY OF MIAMI BEACH
REDEVELOPNENT AGENCY ITEM SUMMARY
m
Condensed Title:
A Resolution approving in concept an Assignment of Lease from Flagler System Management, Inc., to COP
Capital/Montreal Mode Investissements, in connection with Suite "B/C" in the Anchor Shops at South Beach.
Issue:
Flagler System Management, Inc., which operates Absolutely Suitable, a bathing suit retailer, in the Anchor
Shops, is in the process of negotiating with COP Capital/Montreal Mode International Investissements
(MMII), to sublet or assign its space for the remaining term ofthe Lease. Based on preliminary negotiations
to date, MMII is not only seeking to assume Flagler System's Lease, of which approximately six years
remain, but may be interested in extending the term. It is anticipated that the terms for the remainder of the
Lease Agreement would remain the same for the 2,697 square foot space. The annual rent paid by Flagler
System and which would be assumed by MMII, is $102,486, ($38/sJ.), or $8,540.50 per month. Flagler
System's Lease provides for their ability to sublease its space, subject to the approval of the RDA. Any
extension beyond the six-year term would be subject to negotiation with the RDA and the basis for an
amended Lease Agreement.
Montreal Mode International (MMII), member of COP Capital, invests in the expansion of the Quebec
fashion industry, focusing on the creation, management, marketing and distribution of Quebec clothing
products includina swimwear and related accessories.
Item Summary/Recommendation:
As part of the ongoing negotiations, MMII is seeking assurance from the ROA that it would be supportive of
such a transition, either in the form of a Sublease or an Assignment of Lease by Flagler System. Based on
financial statements, operating reports and other pertinent information typically requested of new tenants, the
Administration is satisfied that the company is sound and would continue to operate a first class business in
the Anchor Shoos.
Advisory Board Recommendation:
I N/A
Flnanciallnfonnatlon:
Amount to be expended:
D
Finance Oept.
N/A
Source of
Funds:
AGENDA ITEM 311
DATE 3-.;lt)-o~
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
REDEVELOPMENT AGENCY MEMORANDUM
To:
From:
Chairman and Members of the
Miami Beach Redevelopment Agency
Jorge M. Gonzalez , .~
Executive Director J fJV 0
A RESOLUTION BY THE CHAIRMAN AND MEMBERS OF THE
REDEVELOPMENT AGENCY APPROVING IN CONCEPT AN
ASSIGNMENT OF LEASE FROM FLAGLER SYSTEM MANAGEMENT,
INC., TO CDP CAPIT AUMONTREAL MODE INVESTISSEMENTS, IN
CONNECTION WITH SUITE "B/C" IN THE ANCHORS SHOPS AT SOUTH
BEACH.
Date: March 20, 2002
Subject:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Flagler System Management, Inc., which operates Absolutely Suitable, a bathing suit
retailer in the Anchor Shops, is in the process of negotiating with COP Capital/Montreal
Mode Intemationallnvestissements, to sublet or assign its space for the remaining term of
the Lease.
Montreal Mode Intemationallnvestissements (MMII), member of COP Capital, invests in
the expansion of the Quebec fashion industry. The company focuses on the creation,
management, marketing and distribution of Quebec clothing products and is also involved
in strategic partnerships and acquisitions. COP Capital is the fund manager for the Caisse
de depot et placement du Quebec (COP) and manages over $100 billion in assets. COP
Capital is Canada's leading fund manager and was named "Best Fund Management Group
in Canada" by the Reuters Survey 2000, a pool of 292 publicly traded Canadian
companies. Among its ventures, MMII is also involved in the design of swimwear and
related accessories, which it would sell at the Anchor Shops location.
Based on preliminary negotiations to date, MMII is not only seeking to assume Flagler
System's Lease, of which approximately six years remain, but may be interested in
extending the term. It is anticipated that the terms for the remainder of the Lease
Agreement would remain the same for the 2,697 square foot space. The annual rent paid
by Flagler System and which would be assumed by MMII, is $102,486, ($38/~/), or
$8,540.50 per month. Flagler System's Lease provides for their ability to sublease its
space, subject to the approval of the ROA. Any extension beyond the six-year term would
be subject to negotiation with the ROA and the basis for an amended Lease Agreement.
March 20, 2002
Miami Beach Redeve/opment Agency Memorandum
Page 20f2
As part of the ongoing negotiations, MMII is seeking assurance from the RDA that it would
be supportive of such a transition, either in the form of a Sublease or an Assignment of
Lease.
Once negotiations are finalized between the Parties, the Administration will present to the
RDA for final approval, the terms for the Sublease or Assignment, together with required
documentation, including but not limited to, An amended Lease Agreement and a
Performance Guaranty, with respects to the payment and performance of all liabilities,
obligations, and duties under the terms of the Lease Agreement.
JMG/6DW/rar
T:IAGENOA\2002\MAR2002\ROAIASSIGNMENT.doc
CONSENT OF THE MIAMI BEACH REDEVELOPMENT AGENCY TO AN
ASSIGNMENT AND ASUMPTION OF LEASE BETWEEN FLAGLER SYSTEM
MANAGEMENT, INC., AND 1560 COLLINS AVE., INC.
KNOW ALL MEN BY THESE PRESENTS, that in consideration of the sum of
Ten and No/lOO ($10.00) Dollars and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged and approved by the Chairman and
Members of the Miami Beach Redevelopment Agency, pursuant to Resolution No. 411-
2002, attached as Exhibit "A" hereto, Flagler System Management, Inc., a Florida
Corporation (the "Assignor"), does hereby assign, set over, and transfer to 1560 Collins
Ave., Inc., a Florida Corporation (the "Assignee"), all of the Assignor's right, title, and
interest in and to that certain sublease, entitled Anchor Shops at South Beach Retail
Sublease, dated June 8, 1998 (the "Sublease"), between MB Redevelopment, Inc., a
Florida corporation, as Sub landlord, and Flagler System Management, Inc., as
Subtenant, in connection with that certain space consisting of approximately two
thousand six hundred and ninety seventy (2,697) rentable square feet in the Anchor Shops
at South Beach, Miami Beach, Florida, including, without limitation, all rights to any
security deposit held under the Lease.
The Miami Beach Redevelopment Agency ("Landlord"), as successor-in-interest
to MB Redevelopment, Inc., as former Sublandlord, hereby consents to the foregoing
Assignment and Assumption of Sublease between Subtenant and Assignee; provided,
however, that this Consent shall not be deemed to waive, or render inapplicable, the
provisions of the Sublease with respect to any Transfers (as defined in the Sublease)
subsequent to the date hereof. As provided in the Sublease, Tenant is not relieved of any
liability under the Sublease, whether accrued to the date hereof or hereafter accruing.
Landlord acknowledges and agrees that (i) neither Landlord nor Assignor is in
default under the Sublease, (ii) Landlord is not aware of any claims of any nature
whatsoever against Assignor or the security deposit with respect to the Sublease, and (iii)
Landlord is holding a security deposit in the amount of$17,081.00 under the Lease.
wP~
REDEVELOPMENT
ATTEST:
Robert Parcher, City Clerk
652522.2
APPROVED AS TO
FORM & LANGUAGE
afQREXECUTION
b-II~ C)'l.-
Date
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Dl3 CRANDPR,.13 CHAIT
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DirL'(,,'t line: (514) 878-::1:/33
Direct [/IX: (514) 871l..';7:~:~
E-mail: npetroli/o@rlgd"x.rorn
June 13, ~OO~
BY FAX AND REGISTERED MAIL
Miami Beach Redevelopment Agency
Miami Beach, Florida
Attention: Mr. Kent Bonde
RE: Absolutely Suitable and 1560 Collin!:! Ave., Inc.,
Our reference: 29824.3
Denr Mr.Bonde:
Pursuant to our joint telephone conversation of this afternoon with
Mr. William Perry, thc prcl'Icnt il'l to confirm the following.
As per indicated during said converllation, Montreal Mode inc. is the
!:Iole beneficiary of a trust named "Fiducie Ploge Bud", a trust that has been duly
regiAtered in Quebec, Canada. In turn, this trust is the sole shareholder of the
Floridian company newly constituted undcr the name "1560 Collins Ave., Inc.".
As further indicated, Montreal Mode Inc. wishcs not to appear on any
public records in reference with this nbove-captioned matter. We understand that a
rCAolution has been passed by the City of Mia.mi consenting to the aSfoignment of the
Current Lease (as defined in the Asset Purchase and Rental Agreement) from
Flagler Systems Management Inc. to 1560 Collins Ave., Inc. A reference to
Montreal Mode Inc. appeared on the said document.
It is due to thL<; reference that you have asked our offices to provide you
with a confirmation in regards to the ticfo between Montreal Mode inc. and 1560
Collins Ave., Inc. It ha~ been confinned by you that this letter is sufficient in order
to comply with the resolution and consenl. Lo the content therein.
We understand that such a consent will be finalized by the mayor of
thc City ofr-..1iami by Monday, June 17,2002.
We will be glad to provide you with any other substantiating
document.~ should you feel that this letter is not sufficient.
lOCO. rue del. G..enell_,e O.ell, b..... 1IOC. Monl'6.lla,6bocl H3B .WS CANADA T6I6phon.: ISl_'.'...311 TilOeopi,.r: ISI4I87'''333
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Please. note that this letter is solely for the benefit of the Ilddrcssee
and not for the benefit of any other person. it is rendered solely in connection with
the transactions to which it relates. It may not be quoted, in all or in part.. or
otherwise referred to or used for any purpose without our prior written consent. We
wish to reiterate that all mutters hcrein are to be kept under strict confidentiality.
We thank you in advance for your cooperation.
NP/np
. Regards,
C~6.('..rdp~' (\ull'--
DeGrandpre Chait