701-2024 RDA RESOLUTION NO. 701-2024
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), APPROVING, IN SUBSTANTIAL
FORM, AMENDMENT NO. 2 TO THE 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 AVENUE, SUITE NOS. 3-4
(PREMISES); SAID AMENDMENT EXTENDING THE RENT ABATEMENT
PERIOD DUE TO UNANTICIPATED DELAYS RELATED TO THE APPROVAL
OF THE GREASE TRAP FOR THE RESTAURANT FOR UP TO AN
ADDITIONAL EIGHT(8) MONTHS, UNTIL THE EARLIER OF (i)APRIL 24, 2025
OR (ii) THE DATE THAT IS THIRTY (30) DAYS AFTER TENANT OPENS FOR
BUSINESS; AND FURTHER, AUTHORIZING THE EXECUTIVE DIRECTOR TO
FINALIZE AND EXECUTE THE AMENDMENT.
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 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 use of approximately 4,236 square feet of the retail spaces at the
Anchor Shops, located at 1560 Collins Avenue, Suites Nos. 3-4 (Premises), for the operation of
a fine dining restaurant (Lease); and
WHEREAS, the Lease term is for nine(9)years and 364 days from January 25, 2023, the
date Tenant received possession ("Commencement Date"); and
WHEREAS, on April 25, 2023, the City adopted Resolution No. 681-2023 approving
Amendment No.1 to the Lease to adjust the Concession Fee for use of the Outside Concession
Area from$75.00 PSF to$30.00 PSF for the first year following Rent Commencement and subject
to rent escalations thereafter equal to 3% per year; and
WHEREAS, upon obtaining possession of the Premises, Tenant began renovations to
convert the former retail space to a new, fine dining venue at the Tenant's sole cost and expense
and the Premises was 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 the previously anticipated opening date has also been delayed; and
WHEREAS, under the Lease, the Minimum Rent, Percentage Rent and Concession Fee
payments are abated during,months 8-19 from the Lease Commencement Date (or months 2-13
from the Rent Commencement Date) (Rent Abatement Period) to allow for construction and
buildout of the restaurant, which Rent Abatement Period was due to expire on August 24, 2024;
and
WHEREAS, during the Rent Abatement Period, Tenant is not required to pay the current
monthly Minimum Rent payment, in the amount of$27,269.25; however Tenant is still required to
pay the monthly Operating Expense payments pursuant to the Lease; and
WHEREAS, due to the aforementioned unexpected delays, the Tenant has requested an
extension of the Rent Abatement Period for up to an additional eight (8) months, until the earlier
of(i)April 24 2025 or(ii)the date that is thirty(30)days after Tenant opens for business, in order
to complete the build-out of the restaurant at the Premises; and
WHEREAS, based upon the aforementioned permitting delays, the Executive Director
recommends approving, in substantial form, Amendment No. 2 to the Lease, a draft copy of which
is attached as Attachment "A" to the RDA Memorandum accompanying this Resolution,
memorializing the extended Rent Abatement Period.
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. 2 to the 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 Avenue, Suite Nos. 3-4
(Premises); said Amendment extending the Rent Abatement Period due to unanticipated delays
related to the approval of the grease trap for up to an additional eight (8) months, until the earlier
of (i) April 24, 2025 or (ii) the date that is thirty (30) days after Tenant opens for business; and
further, authorize the Executive Director to finalize and execute the Amendment.
PASSED and ADOPTED this 30 day of Oc 41 j1( 2024.
ATTEST: teven Meiner, Chairperson
-7\1 NOV052024
Rafael E. Granado, Secretary i"s��
r
':IliCORPtORATEDJ
`j •• 6
APPROVED AS TO
FORM & LANGUAGE
CUTION
— 1o ))a )2.10.z,�
Redevelopment Agenc Date
General Counsel
Redevelopment Agency Items (RDA) 6
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, Executive Director
DATE: October 30, 2024
TITLE: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY (RDA), APPROVING, IN SUBSTANTIAL FORM,
AMENDMENT NO. 2 TO THE 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 AVENUE, SUITE NOS. 3-4 (PREMISES); SAID
AMENDMENT EXTENDING THE RENT ABATEMENT PERIOD DUE TO
UNANTICIPATED DELAYS RELATED TO THE APPROVAL OF THE GREASE
TRAP FOR THE RESTAURANT FOR UP TO AN ADDITIONAL EIGHT(8)MONTHS,
UNTIL THE EARLIER OF (I) APRIL 24, 2025 OR (II) THE DATE THAT IS THIRTY
(30) DAYS AFTER TENANT OPENS FOR BUSINESS; AND FURTHER,
AUTHORIZING THE EXECUTIVE DIRECTOR TO FINALIZE AND EXECUTE THE
AMENDMENT.
RECOMMENDATION
The Administration recommends that the Chairperson and Members of the Miami Beach
Redevelopment Agency approve, in substantial form, Amendment No. 2 to the Lease, a copy of which
is attached hereto as Attachment A; and authorize the Executive Director to finalize and execute the
Amendment.
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). Tenant received possession of the Premises on
January 25, 2023 (Commencement Date). The Lease term is for nine (9) years and 364 days
from the Commencement Date with no renewal options.
On April 25, 2023, the City adopted Resolution No. 681-2023 approving Amendment No.1 to the
Lease to adjust the Concession Fee for use of the Outside Concession Area from $75.00 PSF to
$30.00 PSF for the first year following Rent Commencement and subject to rent escalations
thereafter equal to 3% per year, as more particularly described therein. Upon obtaining
possession of the Premises, 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. The Premises was
expected to remain closed during the renovation process until the summer of 2024.
Tenant has been considerably delayed in its ability to begin construction as scheduled, and in
turn will not be able to meet the opening date previously anticipated, due to delays in connection
with the approval process for the installation of a grease trap at the Premises by the Department
of Regulatory and Economic Resources (DERM).
Page 2430 of 2497
ANALYSIS
Under the Lease,the Minimum Rent, Percentage Rent and Concession Fee payments are abated
during months 8-19 from the Lease Commencement Date (or months 2-13 from the Rent
Commencement Date) (Rent Abatement Period) to allow for construction and buildout of the
restaurant. During the Rent Abatement Period, Tenant is still required to pay for the monthly
Operating Expense payments due under the Lease. The Rent Abatement Period for the current
Minimum Rent, in the amount of$27,269.25/month, was due to expire on August 24, 2024.
Due to the aforementioned unexpected delays, the Tenant has requested an extension
for an additional period the earlier of(i) eight (8) months, from August 25, 2024, through
April 24, 2025, or (ii) thirty (30) days after Tenant opens for business to allow for the •
completion of the build-out of the Premises.
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable,the Business Impact Estimate (BIE)was published on:
See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meetinq-notices/
FINANCIAL INFORMATION
CONCLUSION
The Executive Director recommends that the Chairperson and Members of the Miami Beach
Redevelopment Agency approve, in substantial form, Amendment No. 2 to the Lease, a copy of which
is attached hereto as Attachment A; and authorize the Executive Director to finalize and execute the
Amendment.
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 defined 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)
Page 2431 of 2497
Co-sponsors)
Condensed Title
Amendment No. 2 to Lease with Open Vision One, LLC. 1560 Collins Ave. FF
Page 2432 of 2497
ATTACHMENT A
AMENDMENT NO. 2 TO LEASE
BETWEEN
THE MIAMI BEACH REDEVELOPMENT AGENCY
AND
OPEN VISION ONE, LLC
This Amendment No. 2 (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 , 2024:
RECITALS
WHEREAS, on January 13r, 2023, pursuant to Resolution Number 671-2022, the
Miami Beach; Redevelopment Agency (RDA), (Landlord) and Open Vision One, LLC
(Tenant) entered into a Lease forthe operation of a restaurant at 1560 Collins Avenue,
Suites 3 and 4 (Premise's);and
WHEREAS, Tenant received possession of the Premises on January 25,.2023;
and
WHEREAS, the,initial Lease term is for nine (9)years and 364 days commencing
on January 25, 2023, and ending on January 23, 2033,with no renewal options; and
WHEREAS, on April 25, 2023, pursuant to Resolution No. 681-2023, Amendment
No.1 to the Lease was approved to adjust the Concession Fee for use of the Outside
Concession Area from $75.00 PSF to $30.00 PSF for the first year following Rent
Commencement and subject to rent escalations thereafter equal to 3% per year, as more
particularly described therein; and
WHEREAS, the parties executed Amendment No. 1 on July 7, 2023 (the Lease
and Amendment No. 1 shall be collectively referred to herein as the"Lease"); and
WHEREAS, due to delays in connection with the approval process for the
installation of a grease trap at the Premises by the Department of Regulatory and
Economic Resources(DERM),Tenant will not be able to meet the opening date previously
anticipated; and
WHEREAS, under the Lease, the Rent Abatement Period for the current monthly
Minimum Rent payment, in the amount of$27,269.25, is set to expire on September 24,
2024; and
WHEREAS, on April 25, 2024, the Tenant requested an extension of the Rent
Abatement Period by the earlier of (i) for an additional period of eight (8) months, from
Page 2435 of 2497
ATTACHMENT A
August 25, 2024 through April 24, 2025; or (ii) thirty (30) days after Tenant opens for
business; and
WHEREAS, on , 2024, the Chairman and Members of the Miami Beach
Redevelopment Agency adopted Resolution No. , approving, in substantial
form, this Amendment, 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 dough and inserted
items underlined) as follows:
Section 14 of the Lease Summary is.hereby amendedas follows:
14. Term of Lease (Section 1.1):
Lease Term is.nine (9)years and.364 Days from the Commencement Dater -
"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 Abatement: During Months 2 - 4-3 21 from the Rent Commencement Date
(months 849 27 of the Lease Term); however, not to exceed thirty (30) days after
Tenant opens for business ("Rent Abatement Period"), Tenant shall not be
required to pay the monthly Minimum Rent, Concession Fee or Percentage Rent
of426,47-5,00 payment that would otherwise be due; however, Tenant shall be
required to pay for the monthly Operating Expense
payment that would otherwise be due during this Rent Abatement Period.
"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 2436 of 2497
A"ACIAl t5 I`f A
•
•
•
•
3
491
Page 2431 0'2
ATTACHMENT A
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 Eric T. Carpenter, P.E.
Executive Director
Date
FOR TENANT:-` OPEN VISION ONE,LLC
ATTEST:
By: _ :,
Secretary President
Print Name Print Name
Date
4
Page 2438 of 2497