Resolution 2023-32798RESOLUTION NO: 2023-32798
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE A LEASE AGREEMENT BETWEEN THE
CITY OF MIAMI BEACH, AS TENANT, AND 4101 NW 37TH AVENUE LLC., AS
LANDLORD, FOR USE OF APPROXIMATELY 5,000 RENTABLE SQUARE
FEET OF PROPERTY, LOCATED AT 4101 NW 37TH AVENUE, MIAMI,
FLORIDA, TO BE USED AS STORAGE SPACE FOR THE ENZO GALLO
MURALS AND JACK STEWART'S "APOLLO" MURAL; SAID LEASE HAVING
AN INITIAL TERM OF THREE (3) YEARS, COMMENCING ON NOVEMBER 15,
2023, WITH ONE (1) ADDITIONAL RENEWAL TERM FOR THREE (3) YEARS;
AND FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK TO
EXECUTE THE FINAL LEASE AGREEMENT.
WHEREAS, on July 6, 2016, the property owner of the building located at 1200 Lincoln
Road obtained the Design Review Board's approval for a new citizen hotel project, and since then,
has demolished,the building; and
WHEREAS, the building featured four (4) murals; together entitled "The Glory of Old Glory"
(the "Murals"), created in 1971 by Italian artist and sculptor Enzo Gallo, an immigrant who fled Italy
for Cuba and subsequently emigrated to South Florida; and
WHEREAS, the Murals (also referred to as the "Enzo Gallo Murals") were commissioned
by the building's former owner, Shepard Broad, developer of the Bay Harbor Islands, and were
displayed on the prominent corner of Alton Road and Lincoln Road for more than 50 years; and
WHEREAS, prior to the building being demolished, members of the Miami Beach
preservation community urged the City to take action to save the Murals as the private property
owner had no obligation to save them; and
WHEREAS, additionally, Jack Stewart's "Apollo Driving His Sun Chariot Across the Sky"
and "Latona and Her Twins" murals are currently undergoing restoration and will also require to be
stored until Fire Station No. 1 is ready to receive the installation; and
WHEREAS, on June 22, 2022, the Mayor and City Commission adopted Resolution No.
2022-32204, directing the Administration to take all steps necessary to assist with the efforts to
remove and store the Murals at an appropriate to -be -determined temporary location, pending
selection and approval of a suitable permanent location for the Murals; and
WHEREAS, the Miami Design Preservation League ("MDPL") entered into a storage space
lease agreement with a private landlord to temporarily store the Murals at no cost, at 1656 Alton
Road (the "Storage Facility"); and
WHEREAS, however, the storage space lease is set to expire on December 31, 2023, and
the Murals must be relocated beforehand; and
WHEREAS, on July 20, 2022, the Mayor and City Commission adopted Resolution No.
2022-32230, authorizing the City Manager to execute a Memorandum of Understanding (MOU)
between the City and 3425 Collins, LLC ("Developer") pursuant to the requirements of the City's
Historic Preservation Board, involving Jack Stewart's "Apollo" Mural; and
WHEREAS, said MOU required the developer, at its sole cost, to restore, transport and
install the fully restored mural on the new'building for Fire Station No. 1; and
WHEREAS, in accordance with Resolution No. 2022-32204, the Administration has
researched viable warehouse locations to house the murals until such time a permanent
installation is found for the murals; and
WHEREAS, Administration is seeking approval to negotiate such a lease agreement
with4701 NW 37' Avenue, LLC ., for the Enzo Gallo and Apollo Murals storage, with rental rates
of $16 per square foot (PSF) and approximately 5,000 square feet of space as further detailed in
the terms below:
TENANT: City of Miami Beach, a Florida municipal corporation.
LANDLORD: 4101 NW 37th Avenue, LLC.
DEMISED PREMISES: 4101 NW 37thAvenue
Miami, Florida 33142
SIZE: Approximately 5,000 square feet
TERM: 1 Three (3) Years
RENEWAL OPTION: One (1) renewal options for three (3) years
BASE RENT: $16 per square foot ($80,000 annually; $6,666 monthly)
ESCALATION: 3% per year, starting the second lease year
LEASE
COMMENCEMENT DATE: November 15, 2023
RENT
COMMENCEMENT DATE: 30 days after delivery date
SECURITY DEPOSIT: Two (2) month's rent ($13,333)
USE: The Demised Premises shall be used by the City as a storage
location for the Enzo Gallo and Apollo Murals.
WHEREAS, the Administration recommends the Mayor and City Commission approve the
proposed Lease Agreement between the City and 4101 NW 37th Avenue LLC.
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 approve
and authorize the Administration to negotiate a lease agreement between the City of Miami
Beach, as tenant, and 4101 NW 37' Avenue LLC., as landlord, for use of approximately 5,000
rentable square feet of property, located at 4101 NW 37th Avenue, Miami, Florida, to be used as
storage space for the Enzo gallon murals and Jack Stewart's "Apollo" mural; said lease having an
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initial term of three (3) years, commencing on November 15, 2023, with one (1) additional renewal
terms for three (3) years; and further authorize the City Manager and City Clerk to execute the
final lease agreement.
PASSED AND ADOPTED this If
ATTEST:
OCT 2 Q 2023
Rafael E. Granado, City Clerk
day of kki, 2023.
Dan Gelber, Mayor
APPROVED AS TO
(FORM & LANGUAGE
& FOR EXECUTION
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Agenda Item C ? F
Date 10%'
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manag
DATE: October 18, 2023
SUBJECT:, A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND
AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A LEASE
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, AS
TENANT, AND 4101 NW 37TH AVENUE, LLC., AS LANDLORD, FOR
USE OF APPROXIMATELY 5,000 RENTABLE SQUARE FEET OF
PROPERTY, LOCATED AT 4101 NW 37TH AVENUE, MIAMI,
FLORIDA, TO BE USED AS STORAGE SPACE FOR THE ENZO
GALLO MURALS -AND JACK STEWART'S APOLLO MURAL; SAID
LEASE HAVING AN INITIAL TERM OF THREE (3) YEARS'
COMMENCING ON NOVEMBER 15, 2023, WITH ONE (1)
ADDITIONAL RENEWAL TERMS FOR THREE (3) YEARS,; AND
FURTHER AUTHORIZING THE CITY MANAGER AND CITY CLERK
TO EXECUTE THE FINAL LEASE AGREEMENT.
BACKGROUND
On July 6, 2016, the property owner of the building located at 1200 Lincoln Road obtained
the Design Review Board's approval for a new citizen. hotel project, and since then, has
demolished the building. The building featured four (4) murals, together entitled "The Glory
of Old Glory" (the "Murals"), created in 1971 by Italian artist and sculptor Enzo Gallo, an
immigrant who fled Italy for Cuba and subsequently emigrated to South Florida.
The Murals (also referred to as the "Enzo Gallo Murals") were commissioned by the
building's former owner, Shepard Broad, developer of the Bay Harbor Islands, and were
displayed on the prominent corner of Alton Road and Lincoln Road for more than 50 years.
The Enzo Gallo Murals are part of Miami Beach history and have high artistic value. They
are one of the few public art works in the City depicting key elements of American history,
making the preservation thereof important not just artistically, but as a matter of civic pride.
Prior to the building being demolished, members of the Miami Beach preservation
community urged 'the City to take action to save the Murals as the private property owner
had no obligation to save them. Subject to City confirmation, the owner s representatives
indicated the owner would take steps to cut and remove the Enzo Gallo Murals in an effort
to preserve them so as long the owner is not responsible for storing the Murals for future
installation and provided that the removal does not delay the owner s private project.
Consequently, on June 22, 2022, the Mayor and City Commission adopted Resolution No.
2022-32204 directing the Administration to take all steps necessary to assist with the
efforts to remove and store the Murals at an appropriate to -be -determined temporary
location, pending selection and approval of a suitable permanent location for the Murals.
Additionally, said Resolution accepted the owner's donation of the Murals to the City, and
referred the foregoing to the Art in Public Places Committee for an advisory
recommendation as to potential locations for the placement of the Murals.
The Miami Design Preservation League (MDPL) entered into a storage space lease
agreement with a private landlord to temporarily store the Murals at no cost, at 1656 Alton
Road (the "Storage Facility"). The storage space lease is set to expire on December 31,
2023, and the Murals must be relocated beforehand. The Storage Facility is slated for
redevelopment and will soon be undergoing construction; and therefore, unable to
continue housing the Murals.
Concurrently, on July 20, 2022, the Mayor and City Commission adopted Resolution No.
2022-32230, authorizing the City Manager to execute a Memorandum of Understanding
(MOU) between the City and 3425 Collins LLC (Developer) pursuant to the requirements
of the City's Historic Preservation Board, involving Jack Stewart's "Apollo" Mural. Said
MOU requiring the developer, at its sole cost, to restore, transport and install the fully
restored mural on the new building for Fire Station No.1.
Jack Stewart's, "Apollo Driving His Sun Chariot Across the Sky' and "Latona and Her
Twins" murals are currently, undergoing restoration and will also require to be stored until
Fire Station No. 1 is ready to receive the installation. This mural is known as Versailles
Hotel mosaic murals installed in 1958-59 on Collins Avenue, by Jack Stewart, whose work
is recognized by the Smithsonian and can be found in collections and museums
'throughout America and around the globe. The mural depicts Apollo, of Greek mythology,
racing his sun chariot towards his twin sister, the figures identified as Latona, which is the
Roman name for Leto — the mother of Apollo and Artemis — alongside her young twins.
ANALYSIS
In accordance with Resolution No. 2022-32204, the Administration has researched viable
warehouse locations to house the murals until such time a permanent installation is found
for the murals. Therefore, Administration is seeking approval to negotiate such a lease
agreement for the Enzo Gallo and Apollo Murals with rental rates of $16 per square foot
(PSF) and approximately 5,000 square feet of space as further detailed in the terms below.
The Administration has negotiated the attached Letter of Intent (LOI) attached hereto as
Exhibit A prior to entering into the lease.
A summary of the proposed lease terms are as follows:
TENANT: City of Miami Beach, a Florida municipal corporation.
LANDLORD: 4101 NW 37 Avenue, LLC
DEMISED PREMISES: 4101 NW 37 Avenue
Miami, Florida 33142
SIZE: Approximately 5,000 square feet
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TERM: Three (3) Years
RENEWAL OPTION: One (1) renewal option for three (3) years
BASE RENT: $16 per square foot ($80,000 annually; $6,666 monthly)
ESCALATION: 3% per year, starting the second lease year
LEASE
COMMENCEMENT DATE: November 15, 2023
RENT
COMMENCEMENT DATE: 30 days after delivery date
SECURITY DEPOSIT: Two (2) month's rent ($13,333)
USE: The Demised Premises shall be used by the City as a
storage location for the Enzo Gallo and Apollo Murals.
FINANCIAL INFORMATION
The fiscal impact for storing the Enzo Gallo and Apollo Murals is $80,000.00, and it has
been funded in FY 2024.
AMOUNTS/ACCOUNTS:
011-0534-000323: $60,000.00
011-9322-000343: $50,000.00
CONCLUSION
Based on the foregoing, the Administration recommends the Mayor and City Commission
adopt the Resolution approving the proposed Lease Agreement between the City and
4101 NW 37 Avenue, LLC for approximately 5,000 rentable square feet of space located
at 4101 NW 37 Avenue, Miami, Florida.
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DocuSign Envelope ID: 23BFA970-A8BA-494C-9744-B8E98443A142
EXHIBIT A
October 13, 2023
Dear Alan,
M . M
MEN
chariff
R E A L T Y G R O U P
COMMERCIAL DIVISION
Reference: 4101 NW 37 Avenue
Miami FL 33142 (the "Building")
I am pleased to present the following general terms and conditions upon which the City
of Miami Beach (Tenant) would consider entering into a lease for the premises
referenced below:
Tenant: City of Miami Beach
Address: 1700 Convention Center Drive, Miami Beach, FL 33139
Landlord: 4101 NW 37 Avenue, LLC
Premises: 4101 NW 37 Avenue, Miami, FL 33142
Size of
Premises: Approx. 5,000 rentable square foot ("RSF")
Tenant Use: Storage
Lease Term: Three (3) years from Delivery Date
Base Rent: $16.00 per rentable square foot per year to be paid in monthly
installments plus applicable sales tax.
Lease
Commencement: Upon mutual execution of a lease agreement
Renewal Option: Tenant shall have one (1) three (3) year renewal option ("Renewal
Option")
DocuSign Envelope ID: 23BFA970-A8BA-494C-9744-B8E98443A142
Delivery Date: November 15th, 2023
Rent
Commencement: One (1) Month after Delivery Date.
Prepayments: Upon execution of the lease agreement Tenant shall pay its first
month's Rent.
Rent Increases: Starting on the second year of the Lease Term Annual Rent
increases of three percent (3.00%).
Tenant's Work: All Tenant's Work must be approved by Landlord and shall be
conducted_by a general contractor licensed in the State_ of Florida.
Please' provide a list of Tenant's Improvements prior to
Landlord's preparation of the lease agreement.
Utilities: Tenant shall be responsible for electricity, water, phone, and gas (if
applicable).
Landlord's work: Tenant shall accept the premises in its "AS IS" Conditions.
Lease Form: Modified Gross Lease Agreement to be prepared by Landlord.
Brokerage
Disclosure: Landlord and Tenant acknowledge that they have not dealt with any
real estate broker(s) in this transaction other than KW Commercial
representing the Landlord and Chariff Realty Group representing the
Tenant. Landlord shall be responsible for the payment of the
brokerage commission to Broker pursuant to the terms and
conditions of a separate agreement between Landlord and Broker.
INTENTIONALLY LEFT BLANK
DocuSign Envelope ID: 23BFA970-A86A-494C-9744-B8E98443A142
This proposal is non -binding on either party, but is created and accepted in good faith
for both parties to proceed as diligently as possible. The parties understand that neither
will be subject to any binding and enforceable obligations until such time as a lease
incorporating the agreed upon terms and conditions has been fully executed by the
parties. If not accepted, this offer will be withdrawn by October 18th, 2023
I look forward to working with you towards the successful conclusion of this transaction.
Very truly yours,
Luis Guevara,
Chariff Realty Group
Agreed and accepted as stated on this 16 ofOctober 1 2023.
By: DocuSigned by:
Signature: (9y�yu,
C 9bE'IfL6 TOEo703�'...
On Behalf of: city of Miami Beach
Its: Division Director of Asset Management
DocuSign Envelope ID: 23BFA970-A8BA-494C-9744-B8E98443A142
Exhibit "A"
Landlord's Work
Besides the following Landlords Work, Tenant shall accept the premises in its "As -Is"
Conditions:
- delivered in broom clean conditions free of any debris