690-2024 RDA RESOLUTION NO.; 690-2024
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), APPROVING, IN SUBSTANTIAL
FORM, AMENDMENT NO. 1 TO THE LEASE AGREEMENT BETWEEN THE
RDA (LANDLORD) AND COLLINS 1560, LLC D/B/A LIME TREE CAFÉ
(TENANT), FOR USE OF APPROXIMATELY 2,697 SQUARE FEET OF GROUND
FLOOR RETAIL SPACE AT THE ANCHOR SHOPS AND GARAGE, LOCATED
AT 1560 COLLINS AVE, SUITE NOS. 1-2 (PREMISES), AS AN UPSCALE
FRENCH-ITALIAN FUSION CAFÉ, SAID AMENDMENT EXTENDING THE RENT
ABATEMENT PERIOD BY AN ADDITIONAL EIGHT (8) MONTHS, OCTOBER 6,
2024 THROUGH JUNE 5, 2025, DUE TO DELAYS RELATED TO THE
PERMITTING PROCESS FOR THE GREASE TRAP.
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, pursuant to Resolution No. 680-2022, the Miami Beach Redevelopment
Agency(RDA) (Landlord)and Collins 1560, LLC(Tenant)are parties to a lease agreement dated
March 23, 2023 for use of approximately 2,697 square feet of ground floor retail space at the
Anchor Shops and Garage, located at 1560 Collins Avenue, Suites Nos. 1-2 (Premises), for the
operation of a French Italian fusion cafe (Lease); and
WHEREAS, the Lease term is for nine (9) years and 272 days from the Commencement
Date of April 6, 2023, the date Tenant received possession of the Premises; and
WHEREAS, upon obtaining possession of the Premises, Tenant began renovations to
convert the former retail space to a new cafe venue at the Tenant's sole cost and expense, and
the Premises were expected to remain closed during the renovation process until the summer of
2024; and
WHEREAS, due to unexpected delays in connection with the permitting process
associated with the approval of the new grease trap at the Premises by the Department of
Regulatory and Economic Resources(DERM), Tenant's construction schedule has been delayed
and, as such, the previously anticipated opening date has also been delayed; and
WHEREAS, under the Lease, Tenant has received the following concessions:
• for months 2-7 from Rent Commencement(May 6, 2023—November 5, 2023), the
Minimum Rent and Operating Expenses were abated (Minimum Rent and
Additional Rent Abatement Period); and
• for months 8-18 from Rent Commencement (November 6, 2023 — October 5,
2024), the monthly Minimum Rent payment(currently$17,361.68) is being abated
(Rent Abatement Period) in order to allow Tenant to complete the buildout of the
restaurant; however, during the Rent Abatement Period, Tenant is still required to
to pay the monthly payment for estimated Operating Expenses which payment is
currently$3,146.50; and
WHEREAS, due to the aforementioned unexpected delays, the Tenant has requested an
extension of the Rent Abatement Period for an additional period of eight(8) months, from October
6, 2024 through June 5, 2025, to complete the build-out of the restaurant at the Premises; and
WHEREAS, based upon the aforementioned permitting delays, the Interim Executive
Director recommends approving, in substantial form,Amendment No. 1 to the Lease, a draft copy
of which is attached as Attachment"A" to the City Commission Memorandum accompanying this
Resolution, memorializing the extended Rent Abatement Period requested by Tenant.
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(RDA)hereby approve, in substantial form,
Amendment No. 1 to the Lease Agreement between the RDA (Landlord) and Collins 1560, LLC
d/b/a Lime Tree Café (Tenant), for use of approximately 2,697 square feet of ground floor retail
space at the Anchor Shops and Garage, located at 1560 Collins Ave, Suite Nos. 1-2 (Premises),
as an upscale French-Italian fusion café, said Amendment extending the Rent Abatement Period
by an additional eight(8) months, October 6, 2024 through June 5, 2025, due to delays related to
the permitting process for the grease trap.
PASSED and ADOPTED this .�� day of ,Ju kt( 2024.
ATTEST: Steven Meiner, Chairperson
JUL e 3 2024
149Rafael E. Granado, Secretary ti
?Ikf(ORPOR TED.='
26,__- -
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
CO Cal!
Redevelopment Agency Date
General Counsel t
r
Redevelopment Agency Items (RDA) 1
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Chair and Members of the Board of Directors
FROM: Rickelle Williams, Interim Executive Director
DATE: June 26, 2024
TITLE: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY (RDA), APPROVING, IN SUBSTANTIAL FORM,
AMENDMENT NO. 1 TO THE LEASE AGREEMENT BETWEEN THE RDA
(LANDLORD)AND COLLINS 1560, LLC D/B/A LIME TREE CAFE (TENANT), FOR
USE OF APPROXIMATELY 2,697 SQUARE FEET OF GROUND FLOOR RETAIL
SPACE AT THE ANCHOR SHOPS AND GARAGE, LOCATED AT 1560 COLLINS
AVE, SUITE NOS. 1-2 (PREMISES), AS AN UPSCALE FRENCH-ITALIAN FUSION
CAFE, SAID AMENDMENT EXTENDING THE RENT ABATEMENT PERIOD BY AN
ADDITIONAL EIGHT (8) MONTHS, OCTOBER 6, 2024 THROUGH JUNE 5, 2025,
DUE TO DELAYS RELATED TO THE PERMITTING PROCESS FOR THE GREASE
TRAP.
RECOMMENDATION
It is recommended that the Chairperson and Members of the Miami Beach Redevelopment
Agency adopt the Resolution.
BACKGROUND/HISTORY
Pursuant to Resolution No. 680-2022, the Miami Beach Redevelopment Agency (RDA),
(Landlord) and Collins 1560, LLC (Tenant) are parties to a lease agreement dated March 23,
2023, for use of approximately 2,697 square feet of ground retail floor space at Anchor Shops
and Garage, located at 1560 Collins Avenue, Suites Nos. 1-2 (Premises), for the operation of a
French Italian fusion café (Lease). The Lease term is for nine (9) years and 272 days from the
Commencement Date of April 6, 2023, the date Tenant received possession of the Premises.
Upon obtaining possession of the Premises, the Tenant began renovations to convert the former
retail space to a new café venue at the Tenant's sole cost and expense. The Premises was
expected to remain closed during the renovation process until the summer of 2024.
Due to unexpected delays in connection with the permitting process associated with the approval
of a new grease trap at the Premises by the Department of Regulatory and Economic Resources
(DERM), Tenant's construction schedule has been delayed. Consequently, the previously
anticipated opening date has also been delayed.
ANALYSIS
Under the Lease, Tenant received abatement for the Minimum Rent and Operating Expenses for
months 2-7 from the Rent Commencement Date (May 6, 2023-November 5, 2023). Additionally,
for months 8-18 from the Rent Commencement Date (November 6, 2023-October 5, 2024), the
monthly the Minimum Rent payment is being abated (Rent Abatement Period), which is currently
$17,361.68, in order to allow Tenant to complete the buildout of the restaurant. Notwithstanding,
during the Rent Abatement Period, Tenant is still required to pay the monthly payment for
estimated Operating Expenses, which is currently in the amount of$3,146.50.
Page 1804 of 1862
Due to the aforementioned unexpected delays,the Tenant has requested an extension for further
abatement of the monthly Minimum Rent for a period eight (8) months, from October 6, 2024,
through June 5, 2025, to complete the build-out of the restaurant at the Premises. Accordingly,
Amendment No. 1 in substantial form, attached hereto as Attachment A, memorializes the
extended Rent Abatement Period requested by the Tenant.
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
The Business Impact Estimate (BIE)was published on . See BIE at:
https://www.miamibeachfl.gov/city-hall/city-clerk/meetinq-notices/
FINANCIAL INFORMATION
CONCLUSION
Based on the foregoing, the Interim Executive Director recommends approving, in substantial form,
Amendment No. 1 to the Lease,a draft copy of which is attached hereto as Attachment A, memorializing
the extended Rent Abatement Period by an additional eight(8) months, from October 6, 2024, through
June 5, 2025, due to delays related to the permitting process of the grease trap.
Applicable Area
South Beach
Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
No No
Was this Agenda Item initially requested by a lobbyist which, as define d in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s)and principal(s):
Department
Facilities and Fleet Management
Sponsor(s)
Co-sponsor(s)
Page 1805 of 1862
ATTACHMENT "A"
AMENDMENT NO. 1 TO LEASE
BETWEEN
THE MIAMI BEACH REDEVELOPMENT AGENCY
AND
COLLINS 1560, LLC
This Amendment No. 1 (Amendment)to the Lease dated March 23, 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
Collins 1560, LLC ,a Florida limited liability company, having its principal place of business
at 1560 Collins Avenue, Suites 1 and 2, Miami Beach, FL 33139 (Tenant), is entered into
this day of , 2024:
RECITALS •
WHEREAS, on December 14, 2022, pursuant to Resolution Number 680-2022,
the Miami Beach Redevelopment Agency (RDA):, (Landlord) and Collins 1560, LLC
(Tenant) entered into.a.Lease for the operation of a restaurant:at 1560 Collins Avenue,
Suites 3 and 4 (Premises); and
WHEREAS, the initial Lease term is for nine (9)years and 272 days commencing
on April 6, 2023, and ending on;January 3, 2033; and
WHEREAS, upon execution of the Lease, the Tenant began the renovation of the
:Premises, and the cafe is expected to remain closed during the renovation process and
anticipated•to open in the summer of 2024; and
WHEREAS, at the time the Lease was executed, it was under the understanding
that the existing grease trap had prior approval and that only a reviewal of the permit would
be necessary; and
WHEREAS,the Department of Regulatory and Economic Resources(DERM)was
not able to locate any permitting for the initial construction of the grease trap on the site;
and
WHEREAS, the Tenant has undergone complete permitting for an existing grease
trap, which has considerably delayed their ability to open by the date previously
anticipated; and
WHEREAS, the Rent Abatement Period is set to expire on September 22, 2024,
at which point Tenant would be required to pay the current Minimum Rent payment of
$17,361.68, in addition to the Operating Expenses which Tenant is required to pay during
the Rent Abatement Period; and
WHEREAS, on April 25, 2024, the Tenant requested an extension of the Rent
Abatement Period for an additional eight (8) months, from October 6, 2024 through June
5, 2025; and
Page 1806 of 1862
WHEREAS, on , 2024, the Chairman and Members of the Miami Beach
Redevelopment Agency adopted Resolution No. , approving Amendment
No.1 to the Lease, granting Tenant the requested extension of the Rent Abatement Period.
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 struck through and inserted
items underlined)as follows: •
14. Term of Lease (Section 1.1):
Lease.Term is.nine (9) years and 272 Days from the Commencement Date.
"Commencement Date": The date Landlord delivers Premises to the Tenant.
"Rent Commencement Date": 1) Following the earlier of one hundred and eighty
(180) days from Commencement Date; or 2),the date any portion of the Premises
opens for business. .•
Rent. and Additional Abatement Period: ` During'. Months 2-7 from the
• Commencement.Date ("Minimum Rent and Additional"Rent Abatement Period "),
Tenant shall not be required to pay the monthly Minimum Rent or any Additional
Rent payment(as such term is defined in subsection 2.1 of the Lease)that would
otherwise be due during the Minimum Rent and Additional Rent Abatement Period.
Rent Abatement Period: During Months 8- 48 26 from the Commencement Date
("Rent Abatement Period"), Tenant shall not be required to pay the monthly
Minimum Rent payment, the Percentage Rent payment or any Concession Fee
payment that would otherwise be due; however, Tenant shall be required to pay
the monthly Operating Expense payment.
"Renewal Options": None
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.
2
Page 1807 of 1862
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 Rickelle Williams
Interim Executive Director
Date
FOR TENANT: COLLINS 1560, LLC
ATTEST:
By:
Secretary President:
Print Name Print Name
Date
3
Page 1808 of 1862