673-2022 RDA RESOLUTION NO: 673-2022
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), AMENDING RESOLUTION NO.
671-2022, RELATING TO A LEASE AGREEMENT BETWEEN THE RDA
(LANDLORD) AND OPEN VISION ONE, LLC (TENANT), FOR USE OF
APPROXIMATELY 4,236 SQUARE FEET OF GROUND FLOOR RETAIL SPACE
AT THE ANCHOR SHOPS AND GARAGE, AS A FINE DINING RESTAURANT,
LOCATED AT 1560 COLLINS AVE, SUITE NOS. 3-4 (PREMISES); SAID
AMENDMENT CORRECTING THE ESSENTIAL TERMS OF THE LEASE
AGREEMENT, AS MORE PARTICULARLY SET FORTH IN THIS RESOLUTION,
WHICH MODIFICATION, IN MATERIAL PART, INCLUDES AN ABATEMENT OF
THE MINIMUM BASE RENT PAYMENTS FOR MONTHS TWO (2) THROUGH
THIRTEEN (13) FROM THE RENT COMMENCEMENT DATE, WHILE TENANT
COMPLETES THE BUILD-OUT OF THE PREMISES, ESTIMATED TO COST
APPROXIMATELY$1.5 MILLION.
WHEREAS, the Miami Beach Redevelopment Agency (the "RDA") owns that certain
project commonly known as the "Anchor Shops", containing a garage and ground floor retail
spaces located in the area bounded by Washington Avenue and Collins Avenue, in the proximity
of 16th Street; and
WHEREAS, pursuant to a Professional Service Agreement with the City of Miami Beach
(the "City"), CBRE, Inc. is authorized to provide real estate brokerage services for the City, and
served as the listing agent for the ground floor retail space at the Anchor Shops, located at 1560
Collins Avenue, Suite 3-4 (Premises); and
WHEREAS, as a prospective tenant for the Premises, CBRE identified Open Vision One,
LLC, a Florida limited liability company(Tenant); and
WHEREAS, Tenant will be retaining Chef Soumen Banerjee, who has most recently been
the Director of Culinary Development for Carnival Cruise Lines for over 23 years; and
WHEREAS, as part of lease negotiations,the Tenant provided a sample menu, marketing
materials, and financial statements, which are set forth as exhibits to the City Commission
Memorandum accompanying this Resolution; and
WHEREAS, subsequent to negotiations, the Tenant executed a Letter of Intent containing
the essential terms and conditions outlined below:
Premises: 1560 Collins Avenue, Suite 3-4, Miami Beach, Florida 33139;
Size: Approximately 4,236 rentable square feet;
Term: Nine (9)years and Three-Hundred Sixty-four(364) days;
Renewal Options: None;
Lease Commencement Date: The Lease Commencement will be date Landlord delivers
possession of the Premises to Tenant;
Rent Commencement Date: The Rent Commencement Date shall be the earlier of: (1)
180 days following the Lease Commencement Date or (2) the date any portion of the
Premises opens for business;
Minimum Base Rental Rate: $75.00 per rentable square foot, plus applicable sales tax;
$317,700 per year; $26,475 per month;
Percentage Rent: Six percent (6%) over the natural breakpoint of $5,295,000 for first
Lease Year, and resets again each subsequent Lease Year, based upon the Base Rent
for each subsequent Lease Year;
Annual Rent Increases: The base rental rate shall be increased by three percent (3%)
annually;
Operating Expenses: Tenant shall pay its pro rata share of Real Property Taxes,
Property Insurance and Common Area Maintenance for the Project. Tenant's pro rata
share shall be determined based upon the ratio of Tenant's floor area to the total floor area
of all the retail space in the project; current estimate for NNN costs are $14.00 per square
foot;
Minimum Base Rent Abatement: The Minimum Base Rent payment shall be abated for
months two (2)through thirteen (13)from the Rent Commencement Date("Minimum Rent
Abatement Period"); however, Tenant shall be obligated to pay Operating Expenses
during the Minimum Rent Abatement Period;
Prepaid Rent: First month's rent, including Operating Expenses and sales tax, in the
amount of$33,459.11;
Security Deposit: The amount of $66,918.22 shall be due upon execution of the Lease
documents, in addition to first month's rent;
Guarantor: Full personal guaranty shall be required by all owners and spouses;
Utilities: Tenant shall be responsible for the cost of its utilities (electricity, trash removal,
and water and sewer expense);
Construction Allowance: Tenant shall accept the premises in "AS-IS" condition and
shall perform any necessary work at its sole cost and expense, including the installation
of DERM-approved grease traps; and
Use: Tenant shall use the Leased Premises solely for the purpose of operating a fine
dining restaurant; and will be permitted to sell liquor for on-premises consumption so long
as Tenant obtains all the necessary licenses and approvals from the governing
municipalities; provided that the primary use of the Premises cannot be a lounge bar or
primarily serve Cuban or Latin cuisine; and
WHEREAS, subsequently, the parties also agreed, that in the event the Tenant desired
to use the exterior area adjacent to a portion of the Interior Premises, Tenant would be required
to execute a Concession Agreement and the additional square footage would be subject to the
Minimum Base Rental rate and applicable sales tax for the year implemented; and
WHEREAS, on May 27, 2022, the City Administration presented the LOI to the Finance
and Economic Resiliency Committee (FERC), and the FERC recommended in favor of approving
a new lease with Open Vision One, LLC; and
WHEREAS, per the Agreement with CBRE, the City will be obligated to pay a leasing
commission equal to six percent (6%) of the gross aggregate base rent over the initial five years
of the lease; therefore, based on the initial five-year gross aggregate Minimum Base Rent of
$1,686,712.45, a leasing commission of$101,202.75 will be split between CBRE and the Tenant's
broker, Keyes Commercial; and
WHEREAS, the City will be paying 50% of the commission ($50,601.37) upon lease
execution and 50% upon occupancy of the Premises and Rent Commencement; and
WHEREAS, based upon the competitive rental rate and the favorable lease terms, on July
20, 2022, the Chairperson and Members of the Miami Beach Redevelopment Agency adopted
Resolution No. 671-2022, approving, in substantial form, a Lease Agreement with Open Vision
One, LLC (Tenant); and
WHEREAS, the July 20, 2022, City Commission agenda item contained the following
errors or omissions:
1) Correction: the term of the lease should be for nine (9)years and three hundred
and sixty-four(364)days, instead of nine(9)years and three hundred and sixty-
two (362) days;
2) Omission: Tenant's obligation to pay Minimum Base Rent for months two (2)
through thirteen (13)from the Rent Commencement Date will be abated, while
tenant completes the build-out of the Premises, estimated to cost approximately
$1.5 million, and secures all regulatory permits needed to operate the
restaurant; and
3) Correction: the draft Lease Agreement and agenda item reflected, that in the
event Tenant desired to use the exterior area, adjacent to a portion of the
Premises, for outdoor seating (Concession Area), Tenant would be required to
execute a Concession Agreement and pay for use of the Concession Area,
based upon the same Minimum Base Rent Tenant paid for use of the Premises
under the Lease Agreement; Operating Expenses; and applicable sales tax for
the year implemented; however, Tenant will not be required to pay Operating
Expenses in connection with the use of the Concession Area; and
WHEREAS, the City Manager recommends amending Resolution No. 671-2022, to
reflect the corrected essential terms of the Lease Agreement with Tenant, as more
particularly set forth in this Resolution.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson and
Members of the Miami Beach Redevelopment Agency hereby amend Resolution No. 671-2022,
relating to a Lease Agreement between the RDA(Landlord)and Open Vision One, LLC(Tenant),
for use of approximately 4,236 square feet of ground floor retail space at the Anchor Shops and
Garage, as a fine dining restaurant, located at 1560 Collins Ave, Suite Nos. 3-4 (Premises); said
amendment correcting the essential terms of the Lease Agreement, as more particularly set forth
in this Resolution, which modification, in material part, includes an abatement of the Minimum
Base Rent payments for months two (2) through thirteen (13) from the Rent Commencement
Date, or until such time as Tenant opens for business, whichever occurs first, while Tenant
completes the build-out of the Premises, estimated to cost approximately$1.5 Million.
PASSED and ADOPTED this�� ���,,clay of s�� �beC. 2022.
). 14L2211
s
IITLORr'. ORATED
ATTEST: ?4 's{�.. 1 •••h?! Dan Gelber, Chairperson
',,,,74 ..•;QC)__
Rafael E. ranado, Secretary
APPROVED AS TO
SEP 2 12022 FORM&&O E ECUT OLANGUAGE
General CCnse ( r) ate
Redevelopment Agency -RDA 2.
MIAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 14, 2022
SUBJECT:A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), AMENDING RESOLUTION
NO. 671-2022, THAT APPROVED, IN SUBSTANTIAL FORM, A LEASE
AGREEMENT BETWEEN THE RDA(LANDLORD)AND OPEN VISION ONE,
LLC (TENANT), FOR USE OF APPROXIMATELY 4,236 SQUARE FEET OF
GROUND FLOOR RETAIL SPACE AT THE ANCHOR SHOPS AND
GARAGE, AS A FINE DINING RESTAURANT, LOCATED AT 1560 COLLINS
AVE, SUITE NOS. 3-4(PREMISES), FOR A TERM OF NINE (9)YEARS AND
THREE HUNDRED AND SIXTY-TWO (362) DAYS; SAID AMENDMENT TO
THE RESOLUTION, CORRECTING THE ESSENTIAL TERMS OF THE
LEASE AGREEMENT, AS MORE PARTICULARLY SET FORTH IN THIS
RESOLUTION, WHICH MODIFICATION, IN MATERIAL PART, INCLUDES
AN ABATEMENT OF THE MINIMUM BASE RENT PAYMENTS FOR
MONTHS TWO (2) THROUGH THIRTEEN (13) FROM THE RENT
COMMENCEMENT DATE, WHILE TENANT COMPLETES THE BUILD-OUT
OF THE PREMISES, ESTIMATED TO COST APPROXIMATELY $1.5
MILLION, AND SECURES ALL REGULATORY PERMITS NEEDED TO
OPERATE THE RESTAURANT.
(ITEM TO BE SUBMITTED IN SUPPLEMENTAL)
SUPPORTING SURVEY DATA
n/a,
FINANCIAL INFORMATION
n/a
Applicable Area.
South Beach
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
Page 1678 of 1700
Legislative Tracking
Facilities and Fleet Management
Page 1679 of 1700
Agenda Item: RDA-2
Date: 9/14/2022
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.mlamibeachfl.gov
• REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelopment
Agency
f\
FROM: Alina T. Hudak, City Manage
DATE: September 14, 2022
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY (RDA), AMENDING
RESOLUTION NO. 671-2022, RELATING TO A LEASE AGREEMENT
BETWEEN THE RDA (LANDLORD) AND OPEN VISION ONE, LLC
(TENANT), FOR USE OF APPROXIMATELY 4,236 SQUARE FEET OF
GROUND FLOOR RETAIL SPACE AT THE ANCHOR SHOPS AND •
GARAGE, AS A FINE DINING RESTAURANT, LOCATED AT 1560
COLLINS AVE, SUITE NOS. 3-4 (PREMISES); SAID AMENDMENT,
CORRECTING THE ESSENTIAL TERMS OF THE LEASE AGREEMENT,
AS MORE PARTICULARLY SET FORTH IN THIS RESOLUTION,WHICH
MODIFICATION, IN MATERIAL PART,INCLUDES AN ABATEMENT OF
THE MINIMUM BASE RENT PAYMENTS FOR MONTHS TWO (2)
THROUGH THIRTEEN (13) FROM THE RENT COMMENCEMENT
DATE, WHILE TENANT COMPLETES THE BUILD-OUT OF THE
PREMISES, ESTIMATED TO COST APPROXIMATELY$1.5 MILLION.
BACKGROUND
On August 2021,the City, on behalf of the RDA,began marketing for lease approximately
4,236 square feet of retail space at the Anchor Shops and Garage, located at 1560 Collins
Avenue, Suites 3-4, Miami Beach, Florida 33139(the"Premises")through the services of
City-approved brokerage firm, CBRE.
On May 27, 2022, the proposed lease was presented and discussed at the Finance and
Economic Resiliency Committee (FERC). The Committee recommended in favor of
approving a new lease with Open Vision One, LLC.
On July 20, 2022, the Chairperson and Members of the Miami Beach Redevelopment
Agency adopted Resolution No. 671-2022, approving the Lease in substantial form with
Open Vision One, LLC. Resolution No. 671-2022 is hereby being amended to reflect the
terms outlined in the Letter of Intent. The corrections or clarifications are indicated as
follows: deleted items struck through and inserted items underlined:
Landlord: Miami Beach Redevelopment Agency(RDA)
Tenant: Entity name: Open Vision One, LLC,
a Florida limited liability company
Premises: +/-4,236 square foot Premises located at 1560 Collins Ave,
Commission Memorandum
Anchor Shops—New Restaurant Lease
Page 2 of 5
Suites 3-4, Miami Beach, FL 33139
In the event, the Tenant desires to use the outdoor
exterior area adjacent to a portion of the Interior
Premises, Tenant shall be required to execute a
Concession Agreement and the square footage
allowable shall be subject to approval by the Executive
Director, as well as all other required governmental
approvals. The additional square footage shall be
subject to the current base rent rate, operating
expenses and applicable sales tax for the year
implemented. Tenant will not be required to pay
Operating Expenses in connection with the use of the
Concession Area.
Term: nine (0)years and Three H undred Sixty_Two(362) d ys
Nine(9)years and Three-Hundred Sixty-Four(364) days
Renewal Options: None
Lease Commencement: The Lease Commencement Date will be date Landlord
delivers the Premises to Tenant.
Rent Commencement: The Rent Commencement Date will be the earlier of: 1) 180
days from Lease Commencement Date; or 2)the date any
portion of the Premises opens for business.
Minimum Base Rental Rate: $75.00 per rentable square foot, plus applicable sales tax
Annual Rent Increases: The base rental rate shall be increased by three percent
(3%) annually.
Operating Expenses: Tenant shall pay its pro rata share of Real Property
Taxes, Property Insurance and Common Area
Maintenance for the Project. Tenant's pro rata share shall
be determined based upon the ratio of Tenant's floor area
to the total floor area of all the retail space in the project
(to be further clarified in the Lease). Current estimate for
NNN Costs are$14.00 per square foot.
Prepaid Rent: Tenant shall be required to pay the first month's gross rent
in the amount of$3 4-1-7.00-$33,459.11 which shall be
due upon lease execution. Further rent payments will
occur upon rent commencement.
Minimum Base Rent
Abatement: The Minimum Base Rent payment shall be abated for
months two (2) through thirteen (13) from the Rent
Commission Memorandum
Anchor Shops—New Restaurant Lease
Page 3 of 5
Commencement Date ("Minimum Rent Abatement
Period"); however, Tenant shall be obligated to pay
Operating Expenses during the Minimum Rent Abatement
Period.
Percentage Rent: Six percent(6%) over the Natural Breakpoint of$5,295,000
for year one and resets again each subsequent Lease Year,
based upon the Base Rent for each subsequent Lease
Year. Natural Breakpoint means the Annual Base Rent for
the Lease Year divided by six percent(6%).
Security Deposit: The amount of $66,918.22 (subject to Landlord's review
of Tenant's financials and credit report) shall be due upon
execution of the Lease documents, in addition to first
month's rent.
Guarantor: Full personal guaranty shall be required by all owners and
spouses.
Financial Statements: This proposal is subject to Landlord's review and approval
of Tenant's financial statements.
Utilities: Tenant shall be responsible for the cost of its utilities
(electricity, trash removal, and water and sewer expenses)
Construction Allowance: Tenant shall accept the premises in "AS-IS" condition and
shall perform any necessary work at its sole cost and
expense, including the installation of DERM-approved
grease traps.
Signage: Tenant shall have the ability to install exterior signage above
its space, subject to the approval of Landlord in its
proprietary and regulatory capacities.
Use: Tenant shall use the Leased Premises solely for the
purpose of operating a fine dining restaurant; and will be
permitted to sell liquor for on-premises consumption so
long as Tenant obtains all the necessary licenses and
approvals from the governing municipalities; provided that
the primary use of the Premises cannot be a lounge bar or
primarily serve Cuban or Latin cuisine.
Agency Disclosure: Danny Diaz with CBRE, INC. represents the Landlord
and Michael Litsky / Ombretta Mancini with Keyes
Commercial shall represent the Tenant in this
transaction. Landlord shall pay a commission to CBRE in
accordance with the Listing Agreement.
Conditions: The terms and conditions of the letter of intent are subject
Commission Memorandum
Anchor Shops—New Restaurant Lease
Page 4 of 5
to approval by the Miami Beach Redevelopment Agency.
The Letter of Intent is non-binding upon either party, and
may be modified or withdrawn by the Landlord, without
notice, at any time. Only a fully executed and delivered
Lease Agreement, which shall be negotiated in good faith
by both parties, shall serve as a binding agreement in this
regard.
ANALYSIS
The proposed lease provides for a base rental rate of $75.00 per square foot, plus
estimated operating expenses of$14.00 per square foot or$377,004 annually. The base
rent will be increased by three percent (3%) annually. The proposed rent structure over
the term of the lease will bring the City an estimated $3.7 million. It is also crucial to note
that Tenant will be making a large investment with a floor-to-ceiling redesign of the
Premises as they convert a formal retail space to a new; fine dining venue at Tenant's
expense of approximately$1.5 million.
The July 20, 2022, City Commission agenda item contained the following errors or
omission which are being corrected via an Amendment to Resolution 671-2022:
1) Correction: the term of the lease should be for nine (9)years and three
hundred and sixty-four (364) days, instead of nine (9) years and three
hundred and sixty-two(362) days;
2) Omission: Tenant's obligation to pay Minimum Base Rent will be abated
for months two (2)through thirteen (13) from the Rent Commencement
Date, or until such time as Tenant opens for business,whichever occurs
first, while tenant completes the build-out of the Premises, estimated to
cost approximately $1.5 million, and secures all regulatory permits
needed to operate the restaurant.; and
3) Correction: the draft Lease Agreement and agenda item reflected, that
in the event Tenant desired to use the exterior area,adjacent to a portion
of the Premises, for outdoor seating (Concession Area), Tenant would
be required to execute a Concession Agreement and pay for use of the
Concession Area, based upon the same Minimum Base Rent Tenant
paid for use of the Premises under the Lease Agreement; Operating
Expenses; and applicable sales tax for the year implemented; however,
Tenant will not be required to pay Operating Expenses in connection
with the use of the Concession Area.
FISCAL IMPACT
The proposed lease represents a fiscal impact of$101,202.75 in broker fees, to be paid
in two installments of$50,601.37 each in FY 2023. Funding for this necessary service fee
has been appropriated in the following account:465-1995-000312.
CONCLUSION
The City Manager recommends amending Resolution No. 671-2022, said Amendment to
the Resolution, correcting the essential terms of the Lease Agreement,which modification,
Commission Memorandum
Anchor Shops—New Restaurant Lease
Page 5 of 5
in material part, includes: 1) the term of the lease should be for nine (9)years and three
hundred and sixty-four(364) days;2)an abatement of the Minimum Base Rent payments
for months two(2)through thirteen(13)from the Rent Commencement Date,while Tenant
completes the build-out of the Premises, estimated to cost approximately$1.5 million;and
3) Tenant would be required to execute a Concession Agreement and pay for use of the
Concession Area, based upon the same Minimum Base Rent Tenant paid for use of the
Premises under the Lease Agreement. Tenant will not be required to pay Operating
Expenses in connection with the use of the Concession Area.
Exhibits:
Resolution