Resolution 2021-31953RESOLUTION NO. 2021-31953
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A NEW LEASE AGREEMENT BETWEEN THE CITY (TENANT)
AND ESTEFAN ENTERPRISES, INC (LANDLORD), FOR USE OF THE RETAIL
SPACE LOCATED AT 555 JEFFERSON AVENUE BY LITTLE HAVANA
ACTIVITIES AND NUTRITION CENTERS OF DADE COUNTY, INC (LHANC),
FOR THE OPERATION OF LHANC'S RAINBOW INTERGENERATIONAL
CHILDCARE CENTER, BASED UPON THE ESSENTIAL TERMS SET FORTH
IN THIS RESOLUTION; SAID NEW LEASE AGREEMENT HAVING AN INITIAL
TERM OF FIVE (5) YEARS, COMMENCING AS OF DECEMBER 1, 2021 AND
ENDING ON NOVEMBER 30, 2026, WITH TWO (2) SUCCESSIVE FIVE (5)
YEAR RENEWAL TERMS, AT THE OPTION OF THE CITY; AND AUTHORIZING
THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL
NEGOTIATED LEASE AGREEMENT, UPON FORM APPROVAL BY THE CITY
ATTORNEY; AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE A
NEW SUBLEASE BETWEEN THE CITY (SUBLANDLORD) AND LHANC
(SUBTENANT), BASED UPON THE ESSENTIAL TERMS SET FORTH IN THIS
RESOLUTION; AND FURTHER AUTHORIZING THE CITY MANAGER AND
CITY CLERK TO EXECUTE THE FINAL NEGOTIATED SUBLEASE BETWEEN
THE CITY AND LHANC, UPON FORM APPROVAL BY THE CITY ATTORNEY.
WHEREAS, the South Shore Community Center (Center) is located at 833 6th Street and
is owned by the City of Miami Beach. The Center provides leased space to not-for-profit, and
community-based organizations that provide services and assistance to the Miami Beach
community; and
WHEREAS, as authorized pursuant to Resolution No. 2009-27186, the City and Little
Havana Activities and Nutrition Centers of Dade County, Inc. (LHANC) to enter into a Lease
Agreement for use of space at the Center, commencing on October 2, 2009 and ending on
September 30, 2014, with one additional five-year term; and
WHEREAS, on October 2014, pursuant to Resolution No. 2014-28812, the Lease
Agreement with LHANC was amended (Amendment No. 1) to exercise the sole renewal option
commencing on October 30, 2014 and ending on September 30, 2019; and
WHEREAS, the Lease Agreement is currently on a month -to -month extension set to
expire December 31, 2021; and
WHEREAS, simultaneously herewith, the City Administration has placed a City
Commission agenda item for consideration during the December 8, 2021 meeting, recommending
the extension of the month-to-month tenancy for LHANC at the Center; and
WHEREAS, the Center has been designated as the location for the construction of a new
fire station as part of the Government Obligation Bond (GOB) improvements slated as a project
in phase 3; and
WHEREAS, City staff has identified a space located at 555 Jefferson Avenue (the new
"Premises"), owned by Estefan Enterprises, Inc. (Landlord), as a possible relocation site for the
Rainbow Intergenerational Childcare Center; and
WHEREAS, the Landlord of the new Premises has agreed to lease the new Premises to
the City of Miami Beach under the following basic lease terms:
a. Term: 5 years commencing December 1, 2021, with 2 five-year options, at the City's
option, provided, that if after the initial 5 -year term, Landlord sells or redevelops the
Property, then Landlord can terminate upon not less than 180 days' prior notice;
b. Annual Rent: $315,000 for first year;
c. Increases: 2.5% per year during initial term;
d. Security Deposit: $50,000;
e. Rent commencement: two months from Effective Date (Effective Date would be December
1, 2021, so rent commencement date will be February 1, 2022);
f. Pass-Throughs (Insurance and Real Estate Taxes): City of Miami Beach intends to
request an exemption from Real Estate Taxes based on non-profit use, but if any such
taxes are not exempt, the City will be responsible for same. The Real Estate Taxes for
2021 are $82,867.28. Real Estate Taxes pass-through payments commence on January
1, 2022. Insurance pass-through payments commence December 1, 2021;
g. Maintenance: Tenant shall be responsible for maintenance of the Premises, including
without limitation, all systems serving the Premises (mechanical, electrical, plumbing) as
well as store front glass (doors, windows and related hardware) in good condition
throughout the Term. Landlord shall have no maintenance obligation, except for roof,
exterior walls and structure;
h. Utilities: Tenant pays for all utilities;
i. Signage: Tenant may install signage to the maximum extent permitted by municipal codes.
All signage to be submitted to Landlord for approval prior to lease execution. Landlord's
approval of signage shall not be unreasonably withheld or delayed;
j. Tenant's Work: Tenant to provide construction drawings for Tenant's work and Tenant to
retain a GC. Tenant's work will consist of adding of two bathrooms that satisfy
requirements for daycare code; building a demising wall within the main space to divide
younger children from older; installing a fence to enclose the exterior patio; adding a soft -
play area; and capping electrical lines and addressing any other safety issues. Landlord
to retain a GC to perform the Tenant's Work, and Tenant shall be solely responsible for
the cost of same; and
k. Other:
a. Landlord will remove the existing kitchen equipment;
b. The lease will contain other customary terms and conditions for a commercial
lease, including insurance requirements, indemnity provisions, etc.; and
WHEREAS, simultaneously therewith, the City shall negotiate a sublease with LHANC
for the use of the new Premises, based upon similar financial terms, as contained in the Lease
between the City and LHANC for use of the space at the Center, as follows:
a. Rent: $1.20 per year; and
b. Operating Expenses: $2,692.78 per month for its proportionate share of "Operating Expenses"
which are defined as costs and expenses incurred in operating, repairing, and maintaining the
Common Facilities and shall include electrical service, water service, sewer service, stormwater
costs and janitorial service to the Building (including the new Premises), which sum may increase
or decrease on yearly basis; and
WHEREAS, the City Manager recommends that the Mayor and City Commission
authorize the City Manager to negotiate a new Lease Agreement with Landlord, based upon the
foregoing essential lease terms, and following successful negotiations, execute the Lease
Agreement; and simultaneously therewith, negotiate and execute a sublease with LHANC, based
upon the foregoing essential lease terms, in order to continue to provide the City's residents with
childcare services at a convenient location.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize
the City Manager to negotiate a new Lease Agreement between the City (Tenant) and Estefan
Enterprises, Inc. (Landlord), for use of the retail space located at 555 Jefferson Avenue by Little
Havana Activities and Nutrition Center of Dade County, Inc. (LHANC), for the operation of
LHANC's Rainbow Intergenerational Childcare Center, based upon the essential terms set forth
in this Resolution; said new Lease Agreement having an initial term of five (5) years, commencing
as of December 1, 2021 and ending on November 30, 2026, with two (2) successive five (5) year
renewal terms, at the option of the City; and authorize the City Manager and City Clerk to execute
the final negotiated Lease Agreement, upon form approval by the City Attorney; and authorize the
City Manager to negotiate a new sublease between the City (Sublandlord) and LHANC
(Subtenant), subject to the essential terms set forth in this Resolution; and further authorize the
City Manager and City Clerk to execute the final negotiated sublease between the City and
LHANC, upon form approval by the City Attorney.
PASSED and ADOPTED this % day of ��« 2021.
ATTEST:
Granado, City
coRP413PIT
DEC 1 3 2021
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney Q lvr Date
Resolutions - R7 I
MIAMI BEAH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: December 8, 2021
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A NEW LEASE AGREEMENT BETWEEN THE CITY (TENANT)
AND ESTEFAN ENTERPRISES, INC (LANDLORD), FOR USE OF THE
RETAIL SPACE LOCATED AT 555 JEFFERSON AVENUE BY LITTLE
HAVANA ACTIVITIES AND NUTRITION CENTERS OF DADE COUNTY, INC
(LHANC), FOR THE OPERATION OF LHANC-S RAINBOW
INTERGENERATIONAL CHILDCARE CENTER, BASED UPON THE
ESSENTIAL TERMS SET FORTH IN THIS RESOLUTION; SAID NEW
LEASE AGREEMENT HAVING AN INITIAL TERM OF FIVE (5) YEARS,
COMMENCING AS OF DECEMBER 1, 2021 AND ENDING ON NOVEMBER
30, 2026, WITH TWO (2) SUCCESSIVE FIVE (5) YEAR RENEWAL TERMS,
AT THE OPTION OF THE CITY, AND AUTHORIZING THE CITY MANAGER
AND CITY CLERK TO EXECUTE THE FINAL NEGOTIATED LEASE
AGREEMENT, UPON FORM APPROVAL BY THE CITY ATTORNEY; AND
AUTHORIZING THE CITY MANAGER TO NEGOTIATE A NEW SUBLEASE
BETWEEN THE CITY (SUBLANDLORD) AND LHANC (SUBTENANT),
BASED UPON THE ESSENTIAL TERMS SET FORTH IN THIS
RESOLUTION; AND FURTHER AUTHORIZING THE CITY MANAGER AND
CITY CLERK TO EXECUTE THE FINAL NEGOTIATED SUBLEASE
BETWEEN THE CITYAND LHANC, UPON FORM APPROVAL BY THE CITY
ATTORNEY.
SUPPORTING SURVEY DATA
N/A
Applicable Area
South Beach
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
No
Does this item utilize G.O.
Bond Funds?
M
Page 942 of 1357
Legislative Tracking
Facilities and Fleet Management
ATTACHMENTS:
Description
❑ Memorandum
❑ Resolution
Page 943 of 1357
MIAMIBEACH
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: December 8, 2021
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO
NEGOTIATE A NEW LEASE AGREEMENT BETWEEN THE CITY (TENANT)
AND ESTEFAN ENTERPRISES, INC (LANDLORD), FOR USE OF THE RETAIL
SPACE LOCATED AT 555 JEFFERSON AVENUE BY LITTLE HAVANA
ACTIVITIES AND NUTRITION CENTERS OF DADE COUNTY, INC (LHANC),
FOR THE OPERATION OF LHANC'S RAINBOW INTERGENERATIONAL
CHILDCARE CENTER, BASED UPON THE ESSENTIAL TERMS SET FORTH
IN THIS RESOLUTION; SAID NEW LEASE AGREEMENT HAVING AN INITIAL
TERM OF FIVE (5) YEARS, COMMENCING AS OF DECEMBER 1, 2021 AND
ENDING ON NOVEMBER 30, 2026, WITH TWO (2) SUCCESSIVE FIVE (5)
YEAR RENEWAL TERMS, AT THE OPTION OF THE CITY; AND AUTHORIZING
THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FINAL
NEGOTIATED LEASE AGREEMENT, UPON FORM APPROVAL BY THE CITY
ATTORNEY; AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE A
NEW SUBLEASE BETWEEN THE CITY (SUBLANDLORD) AND LHANC
(SUBTENANT), BASED UPON THE ESSENTIAL TERMS SET FORTH IN THIS
RESOLUTION; AND FURTHER AUTHORIZING THE CITY MANAGER AND
CITY CLERK TO EXECUTE THE FINAL NEGOTIATED SUBLEASE BETWEEN
THE CITY AND LHANC, UPON FORM APPROVAL BY THE CITY ATTORNEY.
BACKGROUND
On September 9, 2009, the Mayor and City Commission adopted Resolution No. 2009-27186,
approving a Lease Agreement between the City and Little Havana Activities & Nutrition Centers
of Dade County (LHANC), Inc. to operate its Rainbow Intergenerational Childcare Center. This
program provides childcare services to children whose parents work or reside in Miami Beach.
The Lease is for the use of approximately 2,919 square feet of City -owned property, located on
the first floor of the South Shore Community Center (a/k/a the 6th Street Community Center),
located at 833 Sixth Street, Miami Beach, Florida, 33139. Said lease had an initial term of four (4)
years and 364 days, commencing on October 2, 2009, and ending on September 30, 2014, and
included one (1) additional five (5) year option. On October 2014, pursuant to Resolution No.
2014-28812, the Lease with LHANC was amended (Amendment No.1) to exercise the sole
renewal option commencing on October 30, 2014 and ending on September 30, 2019. Pursuant
to Resolution No. 2021-31545, the Lease is currently on a month-to-month extension set to expire
December 31, 2021.
Page 944 of 1357
Commission Memorandum
555 Jefferson Ave. - LHANC
Page 2 of 3
ANALYSIS
The South Shore Community Center ("Center") is located at 833 6th Street and is owned by the
City of Miami Beach. The Center provides leased space to not-for-profit and community-based
organizations that provide services and assistance to Miami Beach residents.
The Center has been designated as the location for the construction of a new fire station as part
of the Government Obligation Bond (GOB) improvements slated as a project in phase 3. In order
to continue providing the City's residents with community services at a convenient location, City
staff has identified a site located at 555 Jefferson Avenue (the new Premises), owned by Estefan
Enterprises, Inc. (Landlord) for the possible relocation of the Rainbow Intergenerational Childcare
Center.
The Landlord of the new Premises has agreed to lease this location to the City of Miami Beach
under the following basic lease terms:
a. Term: 5 years commencing December 1, 2021 with 2 five-year options, at the City's option;
provided, that if after the initial 5 -year term, Landlord sells or redevelops the Property, then
Landlord can terminate upon not less than 180 days' prior notice.
b. Annual Rent: $315,000 for first year
c. Increases: 2.5% per year during initial term
d. Security Deposit: $50,000
e. Rent commencement: Two months from Effective Date (Effective Date would be December
1, 2021, so rent commencement date will be February 1, 2022)
f. Pass-Throughs (Insurance and Real Estate Taxes): City of Miami Beach intends to request
an exemption from Real Estate Taxes based on non-profit use, but if any such taxes are not
exempt, the City will be responsible for same. The Real Estate Taxes for 2021 are
$82,867.28. Real Estate Taxes pass-through payments commence on January 1, 2022.
Insurance pass-through payments commence December 1, 2021.
g. Maintenance: Tenant shall be responsible for maintenance of the Premises, including without
limitation, all systems serving the Premises (mechanical, electrical, plumbing) as well as
store front glass (doors, windows, and related hardware) in good condition throughout the
Term. Landlord shall have no maintenance obligation EXCEPT for roof, exterior walls and
structure.
h. Utilities: Tenant pays for all utilities.
Signage: Tenant may install signage to the maximum extent permitted by municipal codes.
All signage to be submitted to Landlord for approval prior to lease execution. Landlord's
approval of signage shall not be unreasonably withheld or delayed.
Page 945 of 1357
Commission Memorandum
555 Jefferson Ave. - LHANC
Page 3 of 3
Tenant's Work: Tenant to provide construction drawings for Tenant's work and Tenant to
retain a GC. Tenant's work will consist of: adding of two bathrooms that satisfy requirements
for daycare code; building a demising wall within the main space to divide younger children
from older; installing a fence to enclose the exterior patio; adding a soft -play area; and
capping electrical lines and addressing any other safety issues. Landlord to retain a GC to
perform the Tenant's Work, and Tenant shall be solely responsible for the cost of same.
k. Other:
a. Landlord will remove the existing kitchen equipment.
b. The lease will contain other customary terms and conditions for a commercial lease,
including insurance requirements, indemnity provisions, etc. -
In addition to the terms set forth, the City shall negotiate a sublease with LHANC for the use of
the new Premises, based upon similar financial terms, as contained in the Lease between the
City and LHANC for the use of the space at the Center, as follows:
a. Rent: $1.20 per year.
b. Operating Expenses: $2,692.78 per month for its proportionate share of "Operating Expenses"
which are defined as costs and expenses incurred in operating, repairing, and maintaining the
Common Facilities and shall include electrical service, water service, sewer service, stormwater
costs and janitorial service to the Building (including the new Premises), which sum may increase
or decrease on yearly basis.
CONCLUSION
Based upon the foregoing, City Manager recommends that the Mayor and City Commission
authorize the City Manager to negotiate a new Lease Agreement with Landlord, based upon the
foregoing essential lease terms, and following successful negotiations, execute the Lease
Agreement; and simultaneously therewith, negotiate and execute a sublease with LHANC, based
upon the foregoing essential lease terms, in order to continue to provide the City's residents with
childcare services at a convenient location.
ATTACHMENTS
Resolution
Page 946 of 1357