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Resolution 93-20990 • • &r RESOLUTION NO. 93-20990 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE CONCERT ASSOCIATION OF GREATER MIAMI, INC. , FOR THE COLONY THEATER. WHEREAS, the City of Miami Beach had formerly leased property known as the Colony Theater, located at 1040 Lincoln Road to the Concert Association of Greater Miami, Inc. , for a period of three years with a three year renewal option; and WHEREAS, said Lease, approved by Resolution No. 88-19309, will expire on August 31, 1994, including all renewal options; and WHEREAS, the City of Miami Beach is desirous of continuing to maintain the use of this City property as a performing arts center. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a new Lease Agreement, attached and incorporated as Exhibit "A", be approved, and that the Mayor and City Clerk be authorized to execute the Lease Agreement which is to commence on September 1, 1994, and to end on August 31, 1997. PASSED and ADOPTED this 15, 11 day of December , 1993. F 1 MAYOR ATTEST: iAA.Fo,A_j,__,c--Peva,,,n,..----- ITY CLERK FORM APPROVED c:\wp51\data\colony.res LEGAL DEPT. Date • CITY OF MIAMI BEACH" CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO."7 a Cj 3 TO: Mayor Seymour Gelber and DATE: December 15, 1993 Members of the City Commission FROM: Roger M. Car(kkae.„. City Manager SUBJECT: PUBLIC HEARING FOR THE MANAGEMENT LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE CONCERT ASSOCIATION OF GREATER MIAMI, INC. FOR THE COLONY THEATER ADMINISTRATION RECOMMENDATION: It is recommended that the City Commission approve a lease between • the Concert Association of Greater Miami Inc. , for the Colony Theater and waive the requirements of Miami Beach Ordinance No. 92- 2783, which requires public bidding and an independent appraisal for the lease of public property. • BACKGROUND: In 1988, a lease was approved between the City of Miami Beach and the Concert Association of Greater Miami, Inc. for the operation of the Colony Theater. This lease agreement -expires August 31, 1994 . Pursuant to Ordinance No. 92-2783, prior to entering into a renewal lease agreement, the Mayor and City Commission must hold a public hearing in order to obtain citizen input as to the proposed lease. ANALYSIS: The proposed lease envisions the use of the Colony Theater by the Concert Association of Greater Miami, Inc. , for three (3) years with three (3) one-year renewals. The Lessee pays all costs for utilities, insurance and provides required indemnifications for the City of Miami Beach. Further, the Lessee maintains the interior of the building with the exterior maintenance and major . air conditioning and plumbing expenses, being the responsibility of the City of Miami Beach. The lease approves a schedule of rental fees which may not be amended without written consent of the City of Miami Beach. The operating subsidy provided by the City of Miami Beach is reduced from $70,000 in the year ending 8/31/95, to $65,000 in the year ending 8/31/96, to $60,000 in the year ending 8/31/97. The subsidy will be reduced from net revenues of a cafe area which will be built within the building. As a final factor within the lease, there are assurances that performances presented within the Colony Theater will address the needs of a diverse community including a Children's Summer Series, Hispanic oriented performancesand events targeted to the young adult •market. tit AGENDA ITEM R-� �� DATE 12-\ s` 13 CONCLUSION: The Concert of Greater Miami Inc. has managed the Colony Theater in an excellent manner. The renewal of the lease and waiver of certain requirements of Ordinance No. 92-2783 are wholeheartedly recommended. RMC:ah i� ! • LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this 4-- day of , 199 , by and between the CITY OF MIAMI BEACH, a Florida municipal corporation, (Lessor) , and CONCERT ASSOCIATION OF GREATER MIAMI, INC. , a non-profit corporation incorporated under the laws of the State of Florida (Lessee) : WITNESSET H: WHEREAS, the Lessor is the owner of a certain parcel of land and certain facilities at 1040 Lincoln Road Mall, Miami Beach, Florida known as the Colony Theater and the Lessee desires to use the property for a performing arts center; and WHEREAS, the Lessor desitesto promote cultural programs and facilities; and WHEREAS, the proposed use of the property as a performing arts center would provide an important cultural component to the City of Miami Beach; and WHEREAS, the Lessor desires to actively participate in providing such facilities in the City of Miami Beach. NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, the parties herein covenant and agree as follows: 1. Description of Premises - The Lessor does hereby lease to the Lessee, the facilities known as the "Colony Theater" located at 1040 Lincoln Road Mall, Miami Beach, Florida (Leased Premises) . 2. Term - The term of this lease shall be for a period of three (3) years commencing on the 1st day of September, 1994, and terminating on the 31st day of August, 1997. 3 . Option to Renew - Provided this Lease is not otherwise in default, the Lessee is hereby granted the option to extend this Lease for one three (3) year renewal period upon the same terms and conditions, except that the latter mentioned operating subsidy will be renegotiated at said time, by giving the Lessor notice in writing at least sixty (60) days prior to the expiration of this Lease or any extension thereof and further having said option approved by the Mayor and City Commission. V N 4. Use and Possession of Lease Premises - The Leased Premises shall be used by the Lessee as a multiple use performing arts center. It is understood and agreed that the Leased Premises shall be used by the Lessee during the term of this Leases only for the above purpose, and for no other purposes or uses whatsoever. Lessee will not make or permit any use of the Leased Premises which, directly or indirectly, is forbidden by public law, ordinance or government regulation which may be dangerous to life, limb or property. Lessee may not commit waste on the Leased Premises, use the premises for any illegal purpose, or commit a nuisance on the premises. In the event that the Lessee uses the Leased Premises for any purposes not expressly permitted herein, then the Lessor may terminate the Lease without notice to Lessee, and/or restrain such improper use by injunction or other legal action. 5. Utilities and Telephone - The Lessee, during the term of said Lease shall pay all costs incurred for all utilities, including but not limited to water, gas and electricity. The Lessee, during the term of said lease, shall pay all costs incurred for telephone usage. 6. Lessor's Right of Entry - The Lessor, or its authorized agent or agents, shall have the right to enter upon the Leased Premises at all reasonable times for the purpose of inspecting the same, preventing waste, making such repairs as the Lessor may consider necessary and for the purpose of preventing fire, theft or vandalism. Nothing herein shall imply and duty on the part of the Lessor to do any work which under any provisions of this Lease the Lessee may be required to perform, and the performance thereof by the Lessor shall not constitute a waiver of the Lessee's default. If the Lessee shall not be personally present to open and permit entry into the Leased Premises at any time, for any reason, any entry thereon shall be necessary or permissible, the Lessor, or its agents, may enter the Leased Premises by master key, or may forcibly enter the space without rendering the Lessor or such agents liable therefore (if during such entry the Lessor or its 2 agent or agents shall accord reasonable care to the Lessee's property) , and without in any manner affecting the obligations and covenants of this Lease. Lessee shall not change the locks to the Leased Premises without the prior written consent of Lessor and in the event such consent is given Lessee shall furnish Lessor duplicate keys to said locks in advance of their installation. 7. Insurance - As additional consideration by Lessee herein, Lessee shall, at its own expense, comply with all of the following insurance requirements of the Lessor. It is agreed by the parties that the Lessee shall not occupy the premises until proof of the following insurance coverage has been furnished to the Lessor. (a) Comprehensive General Liability in the amount of $1, 000,000. 00 Single Limit Bodily Injury and Property Damage Coverage for each occurrent. Contractual, Liability, Products and completed operations coverage included. (b) Workers' compensation and employers' liability coverage within the statutory limits of the State of Florida. (c) The insurance must be furnished by an insurance company rated A:X or better, or its equivalent according to Best's Guide Rating Book, or such other rating as may be approved by the City's Risk Manger. The insurance provided must be signed by a Florida Resident Agent and/or countersigned by a Florida Resident Agent for property, casualty and surety insurance required by the Florida statutes. (d) City of Miami Beach must be named as an Additional Insured on this insurance coverage, followed by the statement: "This coverage is primary to all other coverage the City of Maim Beach has for this specific lease only. " (e) Thirty days prior written notice of cancellation of any coverage must be given by the Lessee to City of Maim Beach c/o City of Maim Beach, Risk Management Division, 1700 Convention Center Drive, Miami Beach, Florida, 33319. f) If Lessee or Lessee's agent sells or distributes beer, wine or liquor, Lessee shall obtain liquor liability insurance in 3 the amount of $1, 000, 000. 00 for death or bodily injury and property damage per occurrence and name the City as an additional insured on Lessee's policy. 8: Exculpation and Indemnification Clauses - Lessor shall not be responsible for any damage, theft or injury that may occur to Lessee, sublessee, it agents, exhibitors, servants, employees, invitees, licenses or property from any cause during the period covered by this Agreement. Lessee hereby expressly releases Lessor from and agrees to indemnify, defend and hold Lessor harmless against any and all claims for any such loss, damage, or injury, whether in contract or in tort, including any claims or liability for compensation under the Floiida Worker's Compensation Act, and any and all other public liability which may arise or accrue by reason of the use by Lessee of the Leased Premises. The Lessor shall not be responsible for any violations of Federal or State law resulting form the sale or trafficking of counterfeit goods, personal property, or trademark, copyright and patent violation by any natural persons or business entities on the premises. Lessee further releases Lessor from and agrees to indemnify, defend, and hold Lessor harmless against any and all claims for any such loss, damage, or injury, whether in contract or in tort, which may arise or accrue by reason of the cancellation, for whatever reason, of any performance or event scheduled and/or held at the Leased Premises, whether directly or indirectly sponsored by Lessee. 9. Maintenance and Repair - Lessee shall maintain the Leased Premises and the fixtures and appurtenances therein, and at its sole cost and expense shall make all repairs as and when needed to preserve them in good working order and condition. Said duty to maintain shall include but not be limited to, the maintenance and repair of the electrical system, plumbing system, sound system, lighting system and air conditioning system Lessee shall at its expense at all times under this Agreement have in force air conditioning and sound system maintenance agreements acceptable to Lessor. Lessor shall only be responsible for the maintenance of 4 • the roof, the exterior of the building, the air conditioning system to the extent said repairs are not covered by the air conditioning maintenance agreement, and any plumbing repairs necessitated by breakage of water pipes within the walls or under the Leased Premises. All damage or injury of any kind to the Leased Premises and to its fixtures, glass, appurtenances and equipment or to the buildings, fixtures, glass, appurtenances and equipment, except damage caused by the wrongful acts or negligence of the Lessor, shall be the obligation of Lessee, and shall be repaired, restored or replaced promptly by Lessee at its sole cost and expense to the satisfaction of Lessor. All of the aforesaid repairs, restorations and replacements shall be in quality and class equal to the original work or installations and shall be done in good and workmanlike manner. If Lessee fails to make such repairs or restorations or replacements, the same may be made by the Lessor, at the expense of Lessee, and all sums spent and expenses incurred by Lessor shall be collectable as additional rent and shall be paid by Lessee within ten (10) days after rendition of a bill or statement therefor. In all other respects, the property is being leased in its present "as is" condition. It shall be Lessee's obligation to insure that the premises comply with all applicable building codes and life safety codes of governmental authorities having jurisdiction, except as to the roof and exterior. 10. Governmental Regulations - The Lessee covenants and agrees to fulfill and comply with all statutes, ordinances, rules, orders, regulations, and requirements of any and all governmental bodies, including but not limited to Federal, State and City governments, and any and all of their departments and bureaus applicable to the Leased Premises and shall also comply with and fulfill all rules, orders, and regulations for the prevention of fire, all at Lessee's own cost and expense. The Lessee shall pay all costs, expenses, claims, fines and penalties, and damages that may be imposed because of the failure of the Lessee to comply with 5 this Paragraph, and shall indemnify the Lessor from all liability arising from each non-compliance. 11. Signs - If exterior signs are requested, they will be of a design and form approved by the Lessor. Lessee shall assume the cost of any such signs. All signs shall be removed by Lessee upon the termination of this Agreement and any damage or unsightly condition caused to the Leased Premises because of or due to said signs shall be corrected or repaired by Lessee to the satisfaction of Lessor. 12 . The Lessee shall not injure, mar, nor in any manner deface or cause to be destroyed, defaced, altered, modified or physically changed, the Leased Premises or any portion thereof, or any equipment, fixture, or other item contained therein and that if the Leased Premises or any portion- thereof, or any structure attached thereto, or any equipment, fixture or other item contained shall be destroyed, damaged, marred, altered, or physically changed in any manner whatsoever, and such is not done by or with the express authority of Lessor, but is the act, default or negligence of Lessee, its agents, employees, patrons, guests, or any person admitted to the leased premises by Lessee, then and in that event, Lessee will pay such sum as shall be necessary to repair, replace or restore the Leased Premises or item(s) contained therein, to its previous, whole and uninjured or unaltered condition. Lessee hereby assumes full responsibility for the character, acts and conduct of all persons admitted to the Leased Premises during the term of this Agreement by the Lessee or by or with the consent of any person acting for or on behalf of Lessee. 13 . Lessee is entrusted to properly care for all equipment owned by the City and used by the Lessee and located on the Leased Premises during the term of this Agreement and all such equipment which shall become lost, stolen, or which shall have disappeared shall be the sole responsibility of Lessee and Lessee shall pay the full replacement cost thereof to City. An inventory of City owned equipment is attached hereto as Exhibit "A", and by reference hereto made a part hereof. 6 All personal property of Lessee or of third parties placed or removed into the Leased Premises shall be at the risk of the Lessee or the owner thereof. Lessor shall not be liable to the Lessee for any damage to said personal property unless caused by or due to the negligence of Lessor, its agents, servants or employees. 14. Liability for Damage or Injury - Lessor shall not be responsible for any damage or injury that may occur to Lessee, its agents, servants, employees or property form any cause during the period covered by this Agreement unless due to the negligence of Lessor, its agents and/or employees. 15. Peaceful Possession Subject to the terms, conditions and covenants, Lessor agrees that Lessee shall any may peaceably have, hold and enjoy the premises above described, without hindrance or molestation by Lessor. 16. Surrender of Premises - Lessee agrees to surrender to Lessor at the end of the term of this Lease or any extension thereof, or upon any cancellation of the Agreement, said Leased Premises in as good condition as said premises were at the beginning of the term of the Agreement, ordinary wear and tear, and damage by fire and windstorm or other acts of God, excepted. 17. Destruction of Leased Premises - In the event the Leased Premises shall be damaged, destroyed, or otherwise rendered unusable for the purpose of this Agreement, and thereby the fulfillment of the lease by Lessor is rendered impossible, this Agreement shall terminate and Lessee shall make no claim against Lessor, its agents or servants, for damages or compensation should this Agreement be so terminated.. 18. Addresses for Notices - The addresses for all notices required under this Lease shall be as follows, or at such other address as either party shall, in writing, notify the other: LESSOR: City Manager City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 7 with a copy to: City Attorney City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 LESSEE: Judy Drucker, President Concert Association of Greater Miami, Inc. 555 17th Street Miami Beach, Florida 33139 All notices shall be hand delivered and a receipt requested, or by certified mail with return receipt requested, and shall be effective upon receipt. 19. Taxes - During the term of hereof the Lessee shall pay any and all taxes of whatever nature lawfully levied upon or assessed against the Leased Premises, the operations within the premises, or the personal property located on the premises. 20. Records, Audit - The Lessee agrees to establish and maintain such records as may be prescribed by the Lessor in the future to provide evidence that all terms of this Agreement have been and are being observed. Lessee grants to Lessor the right and authority to audit all records, documents, and books pertaining to the management of the Colony Theater and nay other expenses shared between the City and the Concert Association of Greater Miami. Such audit will be conducted at locations and at a frequency determined by Lessor and communicated to the Lessee. The Lessee agrees to provide materials for the audit at the designed place within three business days after Lessor's notice is received. Lessee shall inform all entities retained by it to provide services in connection with Lessee' s lease of Lessor's premises pursuant to this Agreement, that they must also agree to this provision relating to an audit upon request of Lessor. 21. Assignment and Subletting - Lessee shall not assign this Agreement, nor shall Lessee have the right to sublet the Leased Premises, in whole or in part, or enter into Concession Agreements. 22. Improvements by Lessee - Lessee shall make those alterations, additions, and improvements in and to the Leased Premises for a cafe, provided Lessee determines, and so notifies Lessor in writing by no later than February 15, 1994, whether such 8 plans are feasible. a) In the event that Lessee, commences with its plans to design and build a cafe within the Leased Premises, and has so notified Lessor of same, within thirty (30) days from such notice, Lessee shall submit to Lessor schematic design plans for the contemplated cafe. b) Within thirty (30) days after approval by Lessor of the schematic plans, design development plans shall be submitted. Final working' drawings, specifications and constructions contract documents shall be submitted thirty (30) days after Lessor' s approval of the preliminary plans. c) Thirty (30) days will be allowed for the receiving of bids, award of construction contract and commencement of construction. Upon award of bid, the Lessee shall be permitted thirty (30) days for the construction of the above-mentioned improvements, such improvements to be completed by September 1, 1994. d) All additions, fixtures, or improvements (except furniture and fixtures which are removable without injury or damage to the Leased Premises) shall be and remain a part of the Leased Premises. e) Lessee shall, prior to commencement of construction on the Leased Premises by Lessee, furnished Lessor a Performance and Labor Bond and a Material Payment Bond, both issued by a company duly authorized to do business in Florida, naming Lessor, covering 100% of the cost of constructing the improvements, including labor and materials. 23 . Rental Fees - A schedule of rental fees to be charged to users of the Colony Theater is attached hereto as Exhibit "B" . Lessee shall not change the scheduled rental fees without the prior written consent of Lessor. 24. In keeping with Lessor's desire to actively participate in providing cultural facilities, and recognizing the unique public service benefits provided by the Lessee, Lessor shall contribute the facility for the use of the Lessee as a performing arts center 9 and the City shall thereby forego receiving a fair rental value on the facility. As further consideration for Lessee operating and managing the Leased Premises, Lessor will provide Lessee with an operating subsidy in the amount of $70, 000 for the Lease year ending August 31, 1995; $65, 000 for the Lease Year ending August 31, 1996; and $60, 000 for the Lease Year ending August 3 , 1997. Additionally, once the cafe improvements contemplated by Paragraph 22 herein are completed, any revenues derived from the cafe area will be reduce the aforestated subsidies accordingly. Any obligation of Lessor within this lease which extends beyond the current fiscal year is subject the budget appropriations in subsequent years. Said operating subsidy will be subject to renegotiation if and when the option to renew is exercised by Lessee and agreed to by Lessor. Lessor reserves the right to use the premises twelve (12) days per year at no fee for special not-for-profit events which may be beneficial to the City or may be City-sponsored special events. Said events shall be scheduled in advance so as to not conflict with dates or events already scheduled by the Lessee. 25. Default and Termination a) If Lessee abandons or vacates the Leased Premises prior to the expiration of the term hereof, or b) If Lessee fails to discharge or bond off any lien filed on the Leased Premises within thirty (30) days of written notice from Lessor to Lessee, or c) If Lessee fails to perform in accordance with any of the terms and conditions herein contained, and such default is not cured within thirty (30) days after written notice is given to Lessee, then Lessor may terminate the Agreement and pursue any and all legal remedies available to seek redress for such default, with the prevailing party paying all reasonable legal fees; provided, however that if such failure to perform is curable but of such nature that the cure cannot be completed within such thirty (30) day period, such failure shall not be deemed a default if Lessee promptly commences a cure upon receipt of such notice and 10 • diligently prosecutes such cure to completion; provided, however, that such cure period shall not exceed one hundred and twenty (120) days. 26 . In booking performance dates for cultural, special and/or other events, Lessee shall assure that a diverse mix of performances are presented at the Colony Theater which address the needs and interest of a multi-cultural community such as the City of Miami Beach. Such performances may include, but not be limited to, a variety of multi-ethnic cultural events and performances, and events for children and young adults . 27 . ARBITRATION Any controversy or claim for money damages arising out of or relating to this Agreement, or the breach hereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association, and the arbitration award shall be final and binding upon the parties hereto and subject to no appeal, and shall deal with the question of the costs of arbitration and all matter related thereto. In that regard, the parties shall mutually select an arbitrator, but to the extent the parties cannot agree upon the arbitrator, then the American Arbitration Association shall appoint one. Judgement upon the award rendered may be entered into any court having jurisdiction, or application maybe made to such court for an order of enforcement . Any controversy or claim other than a controversy or claim for money damages arising out of or relating to this Agreement, or the breach thereof, including any controversy or claim relating to the right to specific performance shall be settled by litigation and not arbitration. 28 . LIMITATION OF LIABILITY The Lessor desires to enter into this Agreement only if in so doing Lessor can place a limit on Lessor' s liability for any cause of action for money damages due to an alleged breach by Lessor of this Agreement, so that its liability for any such breach never exceeds the sum of $10, 000 . Lessee hereby expresses its willingness to enter into this Agreement with Lessee recovery from Lessor for any damage action for breach of contract to be limited to a maximum amount of 11 S $10,000. 00 less the amount of all funds actually paid by Lessor to Lessee pursuant to this Agreement. Accordingly, and notwithstanding any other term or condition of this Agreement, Lessee hereby agrees that Lessor shall not be liable to Lessee for damages in an amount in excess of $10, 000. 00 which amount shall be reduced by the amount actually paid by Lessor to Lessee pursuant to this Agreement, for any action or claim for breach of contract arising out of the performance or non- performance of any obligations imposed upon Lessor by this Agreement. Nothing contained in this paragraph or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon Lessor's liability as set forth in Florida Statutes, Section 768.28. 29. Subsequent Changes - Any alterations, variations, modification or waivers of the provisions of this Agreement shall be only valid when they have been reduced to writing and duly signed by both parties. 30. This Agreement contains the entire agreement between the parties hereto and all previous negotiations leading thereto and it may be modified only by resolution approved by the governing body of each party. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by the respect'v- duly aut iorized officers,, and the respective corporate seals o be affixed t,is 2-P day of , 1991. BY: MAYOR SJJT: C TY CLERK . , CONCERT ASSOCIATION OF GRE R MIAM , INC =' . BY ALICUO PRESID ATTEST: FORM APP TIED LE PT. C:\WP51\DATA\COLONY.AGR By Mate