Resolution 2019-30730 RESOLUTION NO. 2019-30730
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 APPROVING AND AUTHORIZING THE CITY
MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE LEASE
AGREEMENT WITH MIAMI BEACH FILM SOCIETY, INC. D/B/A MIAMI
BEACH CINEMATHEQUE, DATED DECEMBER 9, 2009, FOR
APPROXIMATELY 2,523 SQUARE FEET OF SPACE, LOCATED AT
1130 WASHINGTON AVENUE, 1ST FLOOR SOUTH; SAID
AMENDMENT EXTENDING THE LEASE AGREEMENT, ON A MONTH-
TO-MONTH BASIS, COMMENCING RETROACTIVELY ON MARCH 1,
2019, FOR A PERIOD NOT TO EXCEED SIX MONTHS (EXTENDED
TERM), SUBJECT TO TERMINATION BY THE CITY UPON THIRTY (30)
DAYS NOTICE, AND REDUCING THE MONTHLY RENTAL PAYMENTS
DURING THE EXTENDED TERM FROM $4,792.60 TO $2,500.00 PER
MONTH
WHEREAS, Miami Film Society, Inc. d/b/a Miami Beach Cinematheque
(Cinematheque), a nonprofit 501(c)3 organization, currently occupies approximately
2,523 square feet on the ground floor of Historic City Hall, located at 1130 Washington
Avenue, pursuant to a lease agreement, dated December 9, 2009, for an initial term of
three (3) years, with two (2) renewal options for a period of three (3) years each; and
WHEREAS, the second renewal option is scheduled to expire on February 28,
2019 and Cinematheque advised the City on December 17, 2018 that it no longer
desires to remain in the premises after expiration of the lease; and
WHEREAS, on February 13, 2019, the City Commission referred to the Finance
and Citywide Projects Committee (FCWPC) a discussion regarding Living Arts Trust,
Inc. d/b/a 0 Cinema (0 Cinema) taking control of the space to operate a cinema; and
WHEREAS, in its December 17th non-renewal notice, Cinematheque further
asked that starting on March 1 and until such time as 0 Cinema is operating the space
pursuant to a new lease, Cinematheque be permitted to remain as tenant on a month-
to-month basis; and
WHEREAS, citing the rent paid by the City's other ground floor tenant in the
building, MDGLCC Foundation, Inc. d/b/a Miami-Dade Gay & Lesbian Chamber of
Commerce, Cinematheque has asked that its total rental fees owed to the City be
reduced by approximately half from $4,792.60 to $2,500.00 per month; and
WHEREAS, at its February 22, 2019 meeting, the FCWPC directed staff to
further negotiate the terms proposed by 0 Cinema, including the rent and public
benefits, and recommended in favor of granting Cinematheque's request to remain in
the premises on a month-to-month basis, at the reduced rent of $2,500, during the
interim period; and
WHEREAS, the Administration recommends that the Mayor and City
Commission accept the recommendation of the FCWPC and adopt the Resolution
authorizing the City Manager to execute a month-to-month lease extension with
Cinematheque for a period not to exceed six (6) months, including reducing the monthly
rental payments from $4,793 to $2,500, while the Administration negotiates and
finalizes a new lease agreement with 0 Cinema.
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 hereby accept the recommendation of the Finance and Citywide Projects
Committee and approve and authorize the City Manager to execute Amendment No. 2
to the Lease Agreement with Miami Beach Film Society, Inc. d/b/a Miami Beach
Cinematheque, dated December 9, 2009, for approximately 2,523 square feet of space,
located at 1130 Washington Avenue, 1st Floor South; said Amendment extending the
Lease Agreement, on a month-to-month basis, commencing retroactively on March 1,
2019, for a period not to exceed six months (Extended Term), subject to termination by
the City upon thirty (30) days notice, and reducing the monthly rental, payments during
the Extended Term from $4,792.60 to $2,500 per month.
PASSED and ADOPTED THIS /3 day of Pefmk 2018.
l
Dan Gelber, Mayor
ATTEST:
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Ra ael E. ranato, City C erk
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iNOORP ORATED,;
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APPROVED AS TO
FORM & LANGUAGE
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City Attorney Date
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F:\RHCD\$ALL\ECON\$ALL\ASSET\Historic City Hall\MB Film Society\Reso-Cinematheque Lease Extension(03-13-19).docx
Resolutions - C7 J
MIAMI BEAH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 13, 2019
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
APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 2 TO THE LEASE AGREEMENT WITH MIAMI BEACH
FILM SOCIETY, INC. D/B/A MIAMI BEACH CINEMATHEQUE, DATED
DECEMBER 9, 2009, FOR APPROXIMATELY 2,523 SQUARE FEET OF
SPACE, LOCATED AT 1130 WASHINGTON AVENUE, 1ST FLOOR SOUTH;
SAID AMENDMENT EXTENDING THE LEASE AGREEMENT, ON A MONTH-
TO-MONTH BASIS, COMMENCING RETROACTIVELY ON MARCH 1, 2019,
FOR A PERIOD NOT TO EXCEED SIX MONTHS (EXTENDED TERM),
SUBJECT TO TERMINATION BY THE CITY UPON THIRTY (30) DAYS
NOTICE, AND REDUCING THE MONTHLY RENTAL PAYMENTS DURING
THE EXTENDED TERM FROM $4,792.60 TO $2,500.00 PER MONTH
RECOMMENDATION
The Administration recommends that the Mayor and City Commission accept the
recommendation of the FCWPC and adopt the Resolution authorizing the City Manager to
execute a month-to-month lease extension with Miami Beach Cinematheque, for approximately
2,523 square feet of space, located at 1130 Washington Avenue, 1st Floor South, Miami
Beach, Florida, for a period not to exceed six (6) months, including reducing the monthly rental
payments from $4,793 to $2,500, while the Administration negotiates and finalizes a new lease
agreement with 0 Cinema.
HISTORY
Miami Film Society, Inc. d/b/a Miami Beach Cinematheque ("Cinematheque"), a nonprofit
501(c)3 organization, currently occupies approximately 2,523 square feet on the ground floor of
Historic City Hall, located at 1130 Washington Avenue. The lease agreement, dated December
9, 2009, is for an initial term of three (3)years, with two (2) renewal options for a period of three
(3)years each. The second renewal option is scheduled to expire on February 28, 2019.
For a brief period in 2013, Cinematheque held a concession agreement with the City for
operation of an outdoor cafe in the adjacent courtyard outside the premises and immediately
south of the Historic City Hall building. The outdoor café component was not a successful
Page 565 of 1418
operation and Cinematheque terminated the concession agreement after several months. In
another effort to help the nonprofit boost revenue and pay rent during the initial term, the City
Commission adopted Resolution 2014-28790, allowing for alcohol sales and onsite
consumption at the premises during film screenings only.
On December 17, 2018, Cinematheque advised the City it no longer desires to remain in the
premises after expiration of its current lease (Attachment 1). Cinematheque further advised the
City about ongoing discussions with Living Arts Trust, Inc. d/b/a 0 Cinema for 0 Cinema to
become tenant and operate the cinema upon expiration of Cinematheque's lease.
On January 3, 2019, staff met with representatives from 0 Cinema to discuss various terms and
conditions of a potential 0 Cinema lease of the premises. While staff continues discussions
with 0 Cinema, Cinematheque has requested to remain in the premises on a month-to-month
basis under revised lease conditions.
On February 13, 2019, the City Commission referred to the Finance and Citywide Projects
Committee a discussion regarding 0 Cinema taking control of the space to operate a cinema.
ANALYSIS
In a formal proposal dated February 4, 2019 (Attachment 2), 0 Cinema requested to take over
the space from Cinematheque pursuant to a new lease agreement. 0 Cinema seeks terms
more favorable than those contained in the Cinematheque lease:
Term and Renewals. 0 Cinema requests "A Nine (9) year Lease Term with an option to
renew." To satisfy Code requirements regarding the lease of public property, staff recommends
a three (3) year initial term, with the City's option to renew for two (2), three (3) year terms, by
providing 0 Cinema with not less than 180 days written notice prior to the expiration date of the
initial term or any renewal term
Premises. In addition to the interior premises occupied by Cinematheque, 0 Cinema requests
use of the outdoor courtyard adjacent to Historic City Hall, with permission to install tables and
chairs for events. The venue is not a hall for hire and staff recommends that the outdoor
component only be operated during normal operating hours and in conjunction with film
screenings.
Use Fees. Cinematheque currently pays the City a total amount of$57,511 annually($4,792.60
monthly) for base rent, maintenance, and insurance. 0 Cinema requests that the City provide
the premises free of charge in exchange for providing the public benefits outlined below.
Benchmarks. 0 Cinema proposes the following public benefits: (1) "Celebrate Miami Beach,"
an annual cultural screening event offered free of charge to the community; (2) 100 free tickets
annually for seniors; (3) 100 free tickets annually for youth; and (4)20% discount offered once a
month to Miami Beach residents.
Alcohol Sales. 0 Cinema proposes acquiring all pertinent alcohol licensing from
Cinematheque for continuation of beer and wine sales in conjunction with film screenings. 0
Cinema does not propose sharing any percentage of revenue with the City, but it will be
obligated to remit resort taxes on concession sales. The Administration recommends that
alcohol not be permitted served or consumed in the outdoor courtyard.
Page 566 of 1418
Comparison of Key Terms
' Cinematheque Lease 0 Cinema Request
Ground floor interior space, outdoor
Premises 2,523 sf ground floor unit courtyard, and 2 parking spaces in the
adjacent parking garage at no cost to 0
Cinema
3 years and 21 days
Initial Term (March 1, 2010— February 3 years
28, 2013)
Renewal Two (2), three (3)year Two (2), three (3)year terms
Options terms
Cinema with ancillary Film screenings and events indoors;
Use events/exhibitions and sale use of exterior courtyard for outdoor
of concessions café; illuminated promotional
advertising on building exterior
Rent $2,515.59/month, with 3% None
annual increases
Monthly costs of$1,934.30
Operating for Common Area None
Expenses Maintenance and $342.71
for Insurance
Utilities Tenant is responsible. Tenant is responsible
Not required pursuant to 20% resident discount offered monthly;
Public lease annual Miami Beach-themed event with
Benefits free admission; 100 free/discounted
tickets; 100 free/discounted
In its December 17th non-renewal notice, Cinematheque further asked that starting on March 1
and until such time as 0 Cinema is operating the space pursuant to a new lease, Cinematheque
be permitted to remain as tenant on a month-to-month basis. Citing the rent paid by the City's
other ground floor tenant in the building, MDGLCC Foundation, Inc. d/b/a Miami-Dade Gay &
Lesbian Chamber of Commerce, Cinematheque has asked that its total rental fees owed to the
City be reduced by approximately half from $4,792.60 to $2,500.00 per month.
Finance and Citywide Projects Committee
This matter was presented at the February 22, 2019 Finance and Citywide Projects Committee
(FCWPC) meeting. The FCWPC directed staff to further negotiate the terms proposed by 0
Cinema, including the rent and public benefits, and bring the matter back to the next FCWPC
meeting. The FCWPC further recommended in favor of granting Cinematheque's request to
remain in the premises on a month-to-month basis, at the reduced rent of $2,500, during the
interim period.
CONCLUSION
The Administration recommends that the Mayor and City Commission accept the
recommendation of the FCWPC and adopt the Resolution authorizing the City Manager to
execute a month-to-month lease extension with Miami Beach Cinematheque, for approximately
Page 567 of 1418
2,523 square feet of space, located at 1130 Washington Avenue, 1st Floor South, Miami
Beach, Florida, for a period not to exceed six (6) months, including reducing the monthly rental
payments from $4,793 to $2,500, while the Administration negotiates and finalizes a new lease
agreement with 0 Cinema.
Legislative Tracking
Economic Development
ATTACHMENTS:
Description
o Attachment 1 - Cinematheque Notice of Non-Renewal
o Attachment 2- 0 Cinema Letter of Intent
o Attachment 3— Draft Resolution
Page 568 of 1418
Milisits, Mark
Subject: FW: Miami Beach Cinematheque lease
From: MBCinema<mbfilm@bellsouth.net>
Sent: Monday, December 17, 2018 2:58 PM
To: Milisits, Mark<MarkMilisits@miamibeachfl.gov>
Cc: Reddick, Brandi<BrandiReddick@miamibeachfl.gov>; 'Robert Crane'<sobecrane@aol.com>
Subject: Miami Beach Cinematheque lease
Dear Mark:
I am writing to inform you that the Miami Beach Cinematheque has decided not to pursue a long term
new lease at our space.As you have been briefed by Brandi, MBC has been in discussion with 0 Cinema
regarding partnering with us on programming and taking over the lease of the space. With MBC's focus
on specific projects for the future, and with the changes and questions involved with 0 Cinema's current
spaces,this is a good time to combine forces to continue our common mission of providing independent
and art cinema on Miami Beach. As you know MBC invested close to a half million dollars to build the
current space through donated funds, and we are very happy that 0 Cinema is interested in retaining
the legacy and momentum that we have built, but also in retaining the 0 Cinema presence in this area. If
this arrangement can work out it would be a "win win"situation for everyone involved -MBC, 0 Cinema,
the City of Miami Beach and the public.An important and beloved cultural anchor on Washington
Avenue would be retained,where it is needed.
In the interim, while the details of this arrangement are being explored with 0 Cinema and between
them and CMB, MBC would like to remain in the space on a month-to-month basis starting in March.To
do so, we would find it acceptable to pay half the current monthly rent, an amount equivalent to the
rent paid by the LGBTQ Chamber, our non-profit neighbor across the hall which has comparable square
footage.They have benefitted from this lower rent for years in an arrangement made with the City.
We look forward to hearing from you.
Dana Keith
Miami Beach Cinematheque
Page k9 of 1418
CINEMA
February 4,2019
Mark M. Milisits,RPA,Division Director
Tourism, Culture&Economic Development
Office of Real Estate
1755 Meridian Avenue, Suite 300
Miami Beach,FL 33139
Dear Mark,
It was a pleasure meeting with you and Kathie on Jan 4 of this years to discuss the future of the Miami Beach
Cinematheque(operated by the Miami Beach Film Society) and the possibility of 0 Cinema operating it going
forward. Thank you for a productive discussion and for making time to meet with us.
We believe the Miami Beach Cinematheque is a vital asset in the community for residents and visitors alike. As
one of the only cultural organization along the Washington Avenue corridor,the Cinematheque holds a special
place in the district by presenting year-round evening program that offers an alternative to the areas existing
nightlife offerings. Despite a stellar programmatic history,the Cinematheque has endured some difficult
challenges recently- including the loss of a major donor and unsustainable operating costs- and has decided it
cannot continue operations of the facility.
We do not want to see this vital cultural asset vanish and we believe that we are uniquely suited to build upon its
legacy and ensure that it can continue serving the community.
It is important to note that the operation and programming of the space do not come without its challenges. The
Miami Beach Cinematheque is a single-screen facility that does not have industry-standard DCP projection and
is situated less than a mile from the Regal South Beach 18. These factors, coupled with this particular juncture
in South Beach's history,will require significant efforts to reimagine the space and its programming and draw
new audiences. However,we are confident that with time, our strong brand-identity and our unique and
engaging approach to programming and collaborations we can continue to serve the community in new and
exciting ways- creating a high-caliber, affordable, cultural offering that is accessible for all.
We have come to an agreement with the Miami Beach Film Society that will allow for a seamless transition.
However, for us to ensure the theater continues and is successful we respectfully must ask the city for the
following support:
• Elimination of Rent
• Elimination of Common Area Maintenance costs
• A Nine(9)Year Lease Term with an option to renew.
• Use of the adjacent courtyard(at no cost)for outdoor tables, chairs, and events.
Page 570 of 1418
• Signage on the Eastern and Southern Facades of the building
(placement and style suggestions submitted via email)
• Exterior Illuminated Poster Stands
(placement and style suggestions submitted via email)
• Two Parking spaces in the adjacent Parking Garage
While we believe the most important public benefit is the continuous operation and programming of the facility
for residents and visitors alike. We will additionally offer the following:
• Provide Miami Beach residents with discounted-quality cinematic offerings
(20% discount) at least 12 times per year, for a minimum of one film
screening per month;
• Present an annual event, "Celebrate Miami Beach,"highlighting Miami Beach's
culture and history, including a film screening,post-film discussion, and reception,
all provided with free admission for the community.
• Provide no less than 100 free and/or discounted tickets offered annually through
the Miami-Dade County Golden Ticket program for seniors ages 62 and over
• Provide no less than 100 free and/or discounted tickets offered annually through
the Miami-Dade County Culture Shock$5 ticket program for youth ages 13-22 to
select films and events.
Additionally,we should note that we will be working alongside the Miami Beach Film Society to continue some
of their valuable programs and community partnerships while embarking on new initiatives to reinvigorate the
space.
We are eager to shepherd
Thank you for your consideration.
Best,
0)6v\a/y1.9 .047)N
Vivian Marthell Kareem Tabsch
Co-Director Co-Director
Page 571 of 1418