681-2023 RDA RESOLUTION NO, 681-2023
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), ACCEPTING THE
RECOMMENDATION OF THE CITY'S FINANCE AND ECONOMIC RESILIENCY
COMMITTEE AND APPROVING AMENDMENT NO. 1 TO THE LEASE
AGREEMENT BETWEEN THE RDA (LANDLORD) AND OPEN VISION ONE,
LLC (TENANT), FOR THE 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
AVENUE, SUITE NOS. 3-4; SAID AMENDMENT REDUCING THE
CONCESSION FEE FOR USE OF AN OUTSIDE SEATING AREA, ADJACENT
TO THE PREMISES, FROM THE MINIMUM RENT RATE OF $75.00 PSF TO
$30.00 PSF, PLUS ESCALATIONS EQUAL TO 3% PER YEAR, BRINGING THE
CONCESSION FEE IN LINE WITH THE FEES CHARGED BY THE CITY FOR
SIMILAR USES PURSUANT TO ITS SIDEWALK CONCESSION
AGREEMENTS.
WHEREAS, the Miami Beach Redevelopment Agency (the "RDA") is a public body
corporate and politic, which 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, the RDA (Landlord) and Open Vision One, LLC ("Tenant") are parties to a
Lease agreement dated January 13, 2023, pursuant to Resolution No. 673-2022, for use of the
retail spaces at the Anchor Shops, located at 1560 Collins Avenue, Suites Nos. 3-4 ("Premises"),
as a fine dining restaurant("Lease"); and
WHEREAS, the Lease term is for nine (9) years and 364 days, commencing on January
25, 2023, when possession of the Premises was delivered to Tenant ("Commencement Date"),
and expiring on January 23, 2033; and
WHEREAS, the Tenant began renovation of the Premises to convert the former retail
space to a new, fine dining venue at the Tenant's sole cost and expense, and the Premises is
expected to remain closed during the renovation process until the summer of 2024; and
WHEREAS, under the current Lease provisions, in the event the Tenant desires to use
the exterior area within the footprint of Landlord's property, adjacent to a portion of the Premises,
for outdoor seating ("Outside Concession Area"), the Tenant is required to execute a separate
Concession Agreement; the square footage allowable would be subject to approval by the
Executive Director, as well as all other governmental City approvals (if necessary); and the
additional square footage of the Outside Concession Area would be subject to the Minimum Base
Rent rate, and applicable sales tax, at the time implemented,which is currently$75.00 per square
foot (PSF); and
WHEREAS, on December 14, 2022, the Chairperson and Members of the Miami Beach
Redevelopment Agency adopted Resolution No. 680-2022 approving a lease agreement for the
adjacent space located 1560 Collins Avenue, Suite Nos. 1-2 with Collins 1560, LLC d/b/a Lime
Tree Café ("Lime Tree"), an affiliate of Tenant (the "Lime Tree Lease"); and
WHEREAS, the lease term for the Lime Tree Lease and this Lease run concurrently; and
WHEREAS, having these two restaurants in close proximity could provide the operator
with cost saving opportunities and increases the opportunity to be successful at both locations;
and
WHEREAS; the Lime Tree lease also allows for the use of the exterior area within the
footprint of Landlord's property, adjacent to a portion of Lime Tree's premises, and requires Lime
Tree to execute a separate Concession Agreement, subject to the initial rental rate of$30.00 PSF,
subject to escalations equal to three percent(3%) per year; and
WHEREAS, the Outdoor Concession Area is an essential component of Tenant's
restaurant operation and, as such, Tenant requested an amendment to the Lease to adjust the
Concession Fee for use of the Outside Concession Area from $75.00 PSF to $30.00 PSF, plus
applicable sales tax, for the first year following Rent Commencement, with escalations thereafter
equal to 3% per year, which would bring the Concession Fee in line with the City's Sidewalk
Concession Agreements; and
WHEREAS, this item was discussed at the April 21, 2023 Finance and Economic
Resiliency Committee (FERC) meeting and the Committee recommended in favor of approving
an amendment to the Lease to place the Concession Fee in line with the concession fee contained
in the Line Tree Lease and the City's Sidewalk Concession Agreements; and
WHEREAS, the Administration recommends accepting the recommendation of the FERC
and approving Amendment No. 1 to the Lease, incorporated herein by reference and attached to
the City Commission Memorandum accompanying this Resolution as Attachment"A".
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 accept the recommendation of the
City's Finance and Economic Resiliency Committee and approve Amendment No. 1 to the Lease
agreement between the RDA (Landlord) and Open Vision One, LLC (Tenant), for the 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 Avenue, Suite Nos. 3-4; said amendment reducing
the Concession Fee for use of an outside seating area adjacent to the Premises, from the
Minimum Rent rate of$75.00 PSF to$30.00 PSF, plus escalations equal to 3% per year, bringing
the Concession Fee in line with the fees charged by the City for similar uses pursuant to its
Sidewalk Concession Agreements. �/
PASSED and ADOPTED this ''day of AI 2023.
.
ATTEST: : Dan Gelber, Chairperson
41I
; MAY 2 2 2023
Rafael Granado, Secretary
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Redevelopment Agency-RDA 1.
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: May 17, 2023
SUBJECT:A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), ACCEPTING THE
RECOMMENDATION OF THE CITY'S FINANCE AND ECONOMIC
RESILIENCY COMMITTEE AND APPROVING AMENDMENT NO. 1 TO THE
LEASE AGREEMENT BETWEEN THE RDA (LANDLORD) AND OPEN
VISION ONE, LLC (TENANT), FOR THE 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 AVENUE, SUITE NOS. 3-4; SAID AMENDMENT REDUCING
THE CONCESSION FEE FOR USE OF AN OUTSIDE SEATING AREA,
ADJACENT TO THE PREMISES, FROM THE MINIMUM RENT RATE OF
$75.00 PSF TO $30.00 PSF, PLUS ESCALATIONS EQUAL TO 3% PER
YEAR, BRINGING THE CONCESSION FEE IN LINE WITH THE FEES
CHARGED BY THE CITY FOR SIMILAR USES PURSUANT TO ITS
SIDEWALK CONCESSION AGREEMENTS.
RECOMMENDATION
The Administration recommends adopting the Resolution.
BACKGROUND/HISTORY
The Miami Beach Redevelopment Agency ("RDA"), (Landlord) and Open Vision One, LLC
("Tenant")are parties to a lease agreement dated January 13, 2023, pursuant to Resolution No.
673-2022, for the retail spaces at the Anchor Shops, located at 1560 Collins Avenue, Suites
Nos. 3-4 ("Premises")for a fine dining restaurant ("Lease"). The lease term is for nine (9)years
and 364 days, commencing on January 25, 2023, when possession of the Premises was
delivered to Tenant("Commencement Date")and expiring on January 23, 2033.
Tenant has begun renovation of the Premises to convert the former retail space to a new, fine
dining, venue at the Tenant's sole cost and expense. The Premises is expected to remain
closed during the renovation process until the summer of 2024.
Under the current Lease provisions, in the event the Tenant desires to use the exterior area
within the footprint of Landlord's property, adjacent to a portion of the interior Premises for
outdoor seating ("Outside Concession Area"), the Tenant is required to execute a separate
Page 922 of 945
Concession Agreement. The square footage allowable shall be subject to approval by the
Executive Director, as well as all other governmental City approvals (if necessary); with the
additional square footage being subject to the current Minimum Base Rent rate, and applicable
sales tax for the year implemented. The current Minimum Base Rent rate is $75.00 per square
foot(PS F).
On December 14, 2022, the Chairperson and Members of the Miami Beach Redevelopment
Agency adopted Resolution No. 680-2022 approving a lease agreement for the adjacent space
located 1560 Collins Avenue, Suite Nos. 1-2 with Collins 1560, LLC d/b/a Lime Tree Café
("Lime Tree"), an affiliate of Tenant(the "Lime Tree Lease"). The lease term for the Lime Tree
Lease and this Lease run concurrently. Having these two restaurants in close proximity could
provide the operator with cost saving opportunities and increases the opportunity to be
successful at both locations. The Lime Tree lease also allows for the use of the exterior area,
adjacent to a portion of the interior premises, and requires Lime Tree to execute a separate
Concession Agreement, subject to the rental rate of $30.00 PSF. This rate is consistent with
Sidewalk Café permits throughout the City for outdoor dining. The City's rates for use of
permitted sidewalk areas pursuant to a Concession Agreement approved by the Public Works
Department is at a fee of$32.00 PSF, comprised of Concession Area fee of$17.00 PSF and
a Monitoring fee of$15.00 PSF.
ANALYSIS
The Outdoor Concession Area is an essential component for Tenant's restaurants. The Tenant
intends to execute the required Concession Agreement for this expanded area. At the time the
Tenant's Lease was drafted, Administration had not compared the City's Sidewalk Café permit
fees to the quoted rents for this Tenant's Concession. The Tenant is requesting an amendment
to the Lease to adjust the Concession Fee for use of the Outside Concession Area from
$75.00 PSF to $30.00 PSF, plus applicable sales tax, for the first year following Rent
Commencement, with escalations thereafter equal to 3% per year, which is consistent the City's
Sidewalk Concession Agreements. Due to the timing of build-out of the Premises, the
Concession Area will not be activated until the end of FY 2024. Therefore, this Amendment will
not have a fiscal impact to the City's proposed FY 2024 budget.
Finance and Economic Resiliency Committee (FERC) Recommendation
At the April 21, 2023, Finance and Economic Resiliency Committee (FERC) meeting, the
Administration presented the foregoing modification to the Lease. The Committee discussed
the terms and recommended in favor of approving an Amendment to the Lease to place the
Concession Fee in line with the concession fee contained in the Lime Tree Lease and the
City's Sidewalk Concession Agreements.
SUPPORTING SURVEY DATA
n/a
FINANCIAL INFORMATION
n/a
CQNCLUSION
The Administration recommends that the Chairperson and Members of the Miami Beach
Redevelopment Agency accept the recommendation form the Finance and Economic
Page 923 of 945
Resiliency Committee, to approve Amendment No. 1 to the Lease with Open Vision One, LLC
based on the terms and conditions set forth above, a copy of which is attached hereto as
Attachment A. All other terms and conditions set forth under the lease shall remain the same.
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
Legislative Tracking
Facilities and Fleet Management
ATTACHMENTS:
Description
❑ Resolution
❑ Attachment A-Amendment No. 1 to Lease
Page 924 of 945
Attachment-A
AMENDMENT NO. 1 TO LEASE
BETWEEN
THE MIAMI BEACH REDEVELOPMENT AGENCY
AND
OPEN VISION ONE, LLC
This Amendment No. 1 (Amendment) to the Lease, dated January 13, 2023 (Lease), by
and between the Miami Beach Redevelopment Agency (RDA), a Public Body Corporate
and Politic and existing under the laws of the State of Florida, having its principal place of
business at 1700 Convention Center Drive, Miami Beach, Florida 33139("Landlord"), and
Open Vision One, LLC, a Florida Limited Liability Company, having its principal place of
business at 1560 Collins Avenue, Suites 3 and 4, Miami Beach, FL 33139 ("Tenant"), is
entered into this day of , 2023:
RECITALS
WHEREAS, on January 13, 2023, pursuant to 'Resolution Number 673-2022, the
Miami Beach Redevelopment Agency (RDA), (Landlord and Open Vision One, LLC
(Tenant entered into a Lease for the operation of a fine dining restaurant at 1560 Collins
Avenue, Suites 3 and 4 ("Premises" (the"Lease"); and
WHEREAS, the initial Lease term is for nine (9) years and 364 days, commencing
on January 25, 2023, when possession of the Premises was delivered to Tenant
("Commencement Date")and ending on January 23, 2033; and
WHEREAS, Tenant has begun the renovation of the Premises and the restaurant
is expected to remain closed during the renovation process, until the summer of 2024;
and
WHEREAS, under the current Lease provisions, in the event, the Tenant
desires to use the outdoor area within the footprint of Landlord's property, adjacent to a
portion of the Premises, for outdoor seating ("Outdoor Concession Area"), the Tenant is
required to execute a separate Concession Agreement and the square footage allowable
shall be subject to approval by the Executive Director, as well as all other governmental
City approvals; with the additional square footage being subject to the current Minimum
Base Rent rate, and applicable sales tax for the year implemented. The current Minimum
Bare Rent rate is$75 per square foot(PSF); and
WHEREAS, use of the Outdoor Concession Area is an essential component to
Tenant's operation of the restaurant; and
WHEREAS, given the cost and time for the buildout of a floor-to-ceiling remodel of
the space, at the Tenant's sole cost and expense; the tenant has requested to amend the
Lease to reduce the Concession Fee rate for use of the Outdoor Concession Area from
$75 PSF to $30 PSF plus applicable sales tax for the first year following Rent
Commencement, subject to escalations thereafter equal to 3% per year; and
WHEREAS, on the Chairman and Members of the Miami Beach
Redevelopment Agency adopted Resolution No. , approving Amendment
No.1 to the Lease, granting Tenant the requested modification, as more particularly set
forth herein.
1
Page 927 of 945
NOW THEREFORE, in consideration of the mutual promises and conditions
contained herein, and other good and valuable consideration, the sufficiency of which is
hereby acknowledged, the Landlord and Tenant hereby agree to amend the Lease as
follows:
1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this
Amendment.
2. MODIFICATIONS.
The Agreement is hereby amended (deleted items stsk-through and inserted
items underlined) as follows:
(a) Paragraph 12 of the Lease Summary is hereby amended to read as follows:
12. Outdoor Concession Area (Section 1.1):
Tenant may be permitted to use the sidewalk outside area, adjacent to a portion
of the Premises for outdoor seating, subject to the prior written approval of the
Executive Director, as well as all other required governmental approvals; Tenant
shall be required to execute a Concession Agreement for such use; and the
additional square footage shall be subject to a Concession Fee equal to the
' , $30.00 per square foot,
effective as of the Rent Commencement Date, and thereafter subject to
escalations in increments of three percent(3%)per year, similar to Minimum Rent,
plus applicable sales tax.
(b) The fourth section of paragraph 14 of the Lease Summary is hereby
deleted in its entirety and replaced with the following new section:
Rent Abatement: During Months 2-13 from the Rent Commencement Date
("Abatement Period"), Tenant shall not be required to pay the monthly Minimum
Rent payment, Concession Fee payment, or Percentage Rent payment that would
otherwise be due; however, Tenant shall be required to pay the Operating
Expenses payment.
3. RATIFICATION.
Except as amended herein, all other terms and conditions of the Lease shall
remain unchanged and in full force and effect. In the event there is a conflict
between the provisions of this Amendment and the Lease, the provisions of this
Amendment shall govern.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.
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Page 928 of 945
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their appropriate officials, as of the date first entered above.
FOR LANDLORD: THE MIAMI BEACH
REDEVELOPMENT AGENCY
ATTEST:
By:
Rafael E. Granado, Secretary Aline T. Hudak, Executive Director
Date
FOR TENANT: OPEN VISION ONE, LLC
ATTEST:
By:
Print Name Print Name and Title
Date
3
Page 929 of 945