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Resolution 2021-31702 RESOLUTION NO. 2021-31702 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE & ECONOMIC RESILIENCY COMMITTEE TO PROVIDE ADDITIONAL COVID-19 RENT RELIEF TO QUALIFYING TENANTS/OPERATORS OF CITY-OWNED PROPERTY, BY WAIVING THE BASE RENTAL PAYMENTS DUE TO THE CITY, IN ITS PROPRIETARY CAPACITY, FOR THE PERIOD FROM OCTOBER 2020 THROUGH DECEMBER 2020, IN AN AMOUNT NOT TO EXCEED $400,000. WHEREAS, on March 13, 2020, the City of Miami Beach, in line with the County and State, declared a State of Emergency and implemented discretionary emergency measures in response to the COVID-19 pandemic; and WHEREAS, since its initial declaration, Miami-Dade County has issued various Emergency Orders, which temporarily closed public and private facilities; and WHEREAS, to counterbalance the contractual obligations of the City's tenants with loss of revenue due to the closures mandated by the County and City, the Mayor and City Commission adopted Resolution 2020-31332, waiving all rents and fees due to the City, in its proprietary capacity, for commercial tenants/operators of City-owned property for the period from April to September 2020; and WHEREAS, in an effort to retain tenants, some of whom were not able to open due to the COVID-19 Pandemic, the City Administration requested financials from its tenants to determine which qualifying tenants could use short term additional assistance and would be able to commence making their contractual obligations as of January 1, 2021; and WHEREAS, at the December 18, 2020 Finance & Economic Resiliency Committee (FERC) meeting, the City Administration presented an item titled "Discussion Regarding the City of Miami Beach's Policies to Retain Tenants During the Pandemic", and further discussed the process of requesting financials from tenants to evaluate additional base rent waivers for qualifying tenants from October 2020 through December 2020; and WHEREAS, following the discussions, FERC recommended providing base rent relief to qualifying tenants from October 2020 through December 2020 in a total not to exceed amount of $400,000; and WHEREAS, following the recommendation from the Committee, base rents were waived for qualifying tenants from October to December 2020, as follows: Tenant Name I Waived Base Rent Amount I Admiral Cruises $ 13,518.75 Cubiche 105 $ 112,348.29 Liquor Lounge $ 33,302.91 Colony Theater Cafe $ 56,961.90 0 Cinema $ 3,000.00 (Total ! $ 219,131.85 ' 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 & Economic Resiliency Committee to provide COVID-19 rent relief to qualifying tenants/operators of City-owned property, by waiving the base rental payments due to the City, in its proprietary capacity,for the period from October 2020 through December 2020, in an amount not to exceed $400,000. PASSED AND ADOPTED this day of rna/' 2021. Dan Gelber, Mayor ATTEST: 4 2) Raf-el E. Granado, 'ecret.ry _ �P SR -, I CoRP URATE[` APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION c) City Attorney Date ,j 11(]l� Resolutions-C7 G MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: May 12, 2021 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE & ECONOMIC RESILIENCY COMMITTEE AND OF THE CITY MANAGER WITH RESPECT TO PROVIDING COVID-19 RENT RELIEF FOR THE USE OF CITY-OWNED PROPERTY; AND WAIVING ALL RENTS AND FEES DUE TO THE CITY FOR THE MONTHS OF APRIL 2020 THROUGH SEPTEMBER 2020; AND FURTHER WAIVING BASE RENT DUE TO THE CITY BY QUALIFYING TENANTS FOR THE MONTHS OF OCTOBER THROUGH DECEMBER 2020; IN AN AMOUNT NOT TO EXCEED $400,000.00. ANALYSIS SUPPORTING SURVEY DATA N/A Applicable Area Not Applicable Is this a"Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? No No Strategic Connection Non-Applicable Legislative Tracking Property Management ATTACHMENTS: Page 177 of 859 Description ❑ Memorandum D Reso Page 178 of 859 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Honorable Mayor Dan Gelber and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: May 12, 2021 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE & ECONOMIC RESILIENCY COMMITTEE AND OF THE CITY MANAGER WITH RESPECT TO PROVIDING COVID-19 RENT RELIEF FOR THE USE OF CITY-OWNED PROPERTY; AND WAIVING ALL RENTS AND FEES DUE TO THE CITY FOR THE MONTHS OF APRIL 2020 THROUGH SEPTEMBER 2020; AND FURTHER WAIVING BASE RENT DUE TO THE CITY BY QUALIFYING TENANTS FOR THE MONTHS OF OCTOBER THROUGH DECEMBER 2020; IN AN AMOUNT NOT TO EXCEED$400,000.00 RECOMMENDATION The Administration recommends adopting the Resolution. BACKGROUND/HISTORY On March 13, 2020 the City of Miami Beach, in line with the County and State, declared a State of Emergency and implemented discretionary emergency measures in response to the COVID- 19 pandemic. Since its initial declaration, Miami-Dade County issued various Emergency Orders which temporarily closed public and private facilities, including non-essential retail and commercial establishments within the County. The health crisis impacted businesses' revenues and local economies. To counterbalance the City's tenants' loss of revenue due to the closures mandated by County and City, the City's Commission adopted Resolution 2020-31332 suspending all rents and fees from April to September 2020. ANALYSIS Following the discussions, FERC recommended providing base rent relief to qualifying tenants from October 2020 through December 2020 in a total not to exceed $400,000.00. In an effort to retain tenants as some establishments were unable to reopen due to the COVID 19 pandemic, the Administration requested financials from tenants to determine which qualifying tenants could use short term assistance and would be able to meet their contractual obligations as of January 1, 2021. Thereafter the Administration presented an item for discussion at the December 18, 2020 Finance and Economic Resiliency Committee meeting for additional base rent abatement to qualifying tenants from October 2020 through December 2020. Page 179 of 859 Commission Memorandum Memorializing Rent Abatement April 21, 2021 Page 2 of 2 Following the recommendation from the Committee, base rents were waived for qualifying tenants from October to December 2020. Since the City still has obligations to meet such as property taxes and maintenance costs, the additional rent abatement was applicable only to base rent and tenants would remain responsible for paying operating expenses and property taxes for the additional abatement period from October 2020 through December 2020. Commencing on January 1, 2021 all rents would be due and payable from all tenants. The waived base rents for FY 2021 for the qualifying tenants are as follows: Tenant Name Waived Base Rent Amount Admiral Cruises $ 13,518.75 Cubiche 105 $ 112,348.29 Liquor Lounge $ 33,302.91 Colony Theater Café $ 56,961.90 0 Cinema $ 3,000.00 Total $ 219,131.85 During a recovering economy, the additional abatement has assisted tenants in reopening their businesses. The City continues to work closely with tenants and strives to maintain business retention. CONCLUSION The Administration recommends that the Mayor and Commission memorialize the rent abatement the City has provided to tenants in response to the COVID 19 Pandemic. Page 180 of 859