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FY 24/25 Commercial Lease Subsidy Program Agreement South Beach Brewing Company, LLC. 20ZS 33�s 7 CITY OF MIAMI BEACH COMMERCIAL LEASE SUBSIDY PROGRAM MAR 2 0 2025 PARTICIPATION AGREEMENT THIS AGREEMENT is entered into this _ day of , 20 ("Effective Date"), by and between the CITY OF MIAMI BEACH, FLORIDA, a Florida municipal corporation having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City") and SOUTH BEACH BREWING COMPANY, LLC, a Florida limited liability company, D/B/A SOUTH BEACH BREWING COMPANY, whose principal business address is 210 11th Street, Miami Beach, Florida 33139 ("Participant") for participation in the City's Commercial Lease Subsidy Program ("Program"). Article I Program Summary Subject Property Address: 210 11th Street/1058 Collins Avenue Miami-Dade County Tax Folio: 02-3234-008-1210 Property Owner Name: JULAUG INVEST 2 LLC Participant Entity Name: SOUTH BEACH BREWING COMPANY LLC Tenant Business Name: D/B/A SOUTH BEACH BREWERY Business Operations: Food service operation Participant Representative: Mr. Lorenzo Borghese (Owner) Participant Rep. Phone: (917) 570-0877 Participant Rep. Email: borghesel@southbeachbrew.com ii. Authorizing Resolution: Resolution No. 2025-33457 (2-3-25) iii. Subsidy Award Amount: Not to exceed $20,000.00 annually (subject to terms in Program Guidelines) iv. Expense Eligibility Date: Effective Date of this Agreement v. Term of Program: Three (3) years from Effective Date unless otherwise terminated earlier pursuant to the terms of this Agreement (the "Term"). vi. Participant Application See Exhibit 1 vii. Program Guidelines: See Exhibit 2 viii. Disbursement Request Form: See Exhibit 3 Page 1 of 18 Article II General Conditions i. Program Description. The Art Deco/MiMo Commercial Character Overlay District(the "ADCD') offers exceptional cultural, commercial, and entertainment amenities that are vital to the Miami Beach economy and drive its tourism and hospitality industry. The City of Miami Beach (the "City') is committed to promoting and attracting vibrant commercial activity, with a focus on businesses and family-friendly activities in the ADCD that contribute to the City's rich cultural arts legacy. Pursuant to Resolution No. 2022-32207, the Miami Beach City Commission created the Commercial Lease Subsidy Program (the "Program") as a reimbursement-based incentive grant to reimburse a portion of eligible rent, lease or mortgage-related expenses (e.g., rent, mortgage fees, insurance, and real estate taxes) and the total annual cost for the City business tax receipt (BTR) for the participating commercial property in the ADCD that is leased to a new or existing commercial tenant or operated by the owner, whose business activities promote the Programs purpose. ii. Contract Administrator. The City Commission has delegated the responsibility of administering this Agreement to the City Manager or the City Manager's authorized designee, who shall be the City's Economic Development Department Director. iii. Agreement/Exhibits. Program participation is granted to the Participant pursuant to the authorizing City Commission Resolution set forth in Article I. This Agreement includes the Participant Application, incorporated herein by reference and attached hereto as Exhibit 1; the Program Guidelines, incorporated herein by reference and attached hereto as Exhibit 2; and the Disbursement Request Form, incorporated herein by reference and attached hereto as Exhibit 3. iv. Obligation to Maintain Eligibility. Participant has an ongoing obligation to adhere to the terms and conditions of this Agreement during the Term in order to remain eligible to participate in the Program. v. Maximum Subsidy Award. The subsidy award ("Award") is limited in the following amounts, subject to appropriation and budgetary approval by the City Commission during each fiscal year: a. Program Term: $60,000.00 over three (3) years b. Annually: $20,000.00 over 12 months c. Monthly: Not to exceed $2,500.00 Article Ill Reimbursement Payments The Program is intended to elevate and enhance the character of the ADCD. To demonstrate that the Participant's participation in the Program furthers this purpose, the Participant is eligible to receive reimbursement of Qualified Expenses (as defined in subsection iii) relating to a valid commercial lease of the property identified in Article I (the 'Property") or evidence of ownership or purchase of the Property. Page 2 of 18 ii. Conditions Precedent. Reimbursement of Qualified Expenses is contingent upon the following: (1) Application approval via City Commission Resolution; (2) Execution of this Agreement; (3) Execution of a valid lease agreement for the Property(where applicable); (4) Annual appropriation of Program funding by the City Commission; (5) Verification by the City of Qualified Expenses submitted pursuant to the Disbursement Request Form; and (6) Continuous compliance with this Agreement and Program Guidelines. The City maintains the right to withhold reimbursement if the Participant is found noncompliant with this Agreement, Program Guidelines, or City or State regulations. iii. Qualified Expenses. Qualified Expenses are costs that are documented as paid, that are incurred on or after the Expense Eligibility Date identified in Article 1 (iv) herein, and related to any of the following: a. If Participant is a lessee or tenant at the Property: 1. Rent 2. Insurance required to be maintained pursuant to the lease 3. Real estate taxes required to be paid pursuant to the lease 4. BTR fees b. If Participant is the property owner of the Property: 1. Mortgage fees 2. Property insurance 3. Real estate taxes (including special assessments) 4. BTR fees iv. BTR Fee Reimbursement. In addition to the Award (i.e., a maximum of $20,000.00 annually), the City will reimburse Participant the total annual City BTR fees associated with the business operations on the Property. Without limiting the foregoing, and solely for clarification purposes, the amount of the City BTR fees does not limit or contribute towards the $20,000.00 Award. v. Expense Eligibility. Verification of expense eligibility is subject to the sole and absolute discretion of the City. Expenses may be deemed ineligible for reimbursement if any of the following circumstances: a. Property owner and tenant business have not executed a lease agreement; b. Lease agreement is not valid and/or effective; c. The Property has not received a certificate of use (CU); or d. Either property owner or tenant business has not obtained a valid and active BTR. vi. Frequency of Reimbursement. The Participant may submit to the City a request for reimbursement of Qualified Expenses no more frequently than once per quarter (January 1st, April 1st, July 1st, and October 15t, each a "quarter"), to be submitted within ten (10) days from the end of each quarter, utilizing the Disbursement Request Form, attached hereto as Exhibit 3. Page 3 of 18 vii. Installment Payment Amount. The amount of the installment reimbursement payment is calculated based on the Qualified Expenses submitted for verification and deemed eligible by the City, in its sole discretion. The installment payment shall not exceed $2,500.00 per month or fifty percent (50%) of the total monthly Qualified Expenses, whichever is less. The cumulative amount of installment payments within 12 months shall not exceed $20,000.00 in the aggregate plus the annual reimbursement for the City's BTR payment. viii. Backup Documentation. The Participant must submit copies of expense documentation for review by the City prior to the reimbursement of expenses. Incomplete records or unsupported reimbursement requests will delay review and the submission of falsified records will result in the termination of this Agreement. Digital copies of the following are acceptable: a. Receipts and/or paid invoices; b. Proof of payment (copy of checks or bank statements or ACH); c. Licensing documentation and other governmental records; and d. Photos of new business operation. Article IV/ Compliance Requirements Oversight and Compliance. The Award is authorized with the understanding that the Program will enhance, diversify, and develop the City's economic climate. To demonstrate that the Award is fulfilling, or has fulfilled, its purpose, the Participant must furnish the City with all related documents necessary to verify the Participant's compliance with the Program requirements. This documentation must be received by the City staff within the Term of the Program. City staff may monitor and conduct an evaluation of the Participant's business, which may include, without limitation, onsite visits to observe the Property. ii. Expense Verification and Submission Requirements. City staff will administer the Program and evaluate Participant compliance. Participants will be monitored throughout the Term to ensure compliance with this Agreement. Reimbursement of Qualified Expenses will only be issued after the Participant has satisfied all commitments as set forth in this Agreement. iii. Accounting and Financial Review. Participant shall keep accurate receipts and records of all expenses and financial documents relating to the Program in accordance with reasonable accounting standards and shall retain such receipts and records for the later of at least four (4) years after completion of the Program, or at least two (2) years after the expiration of the Term. At the City's request, Participant shall provide reasonable access to its files, records and personnel, during regular business hours, for the purpose of making financial audits, evaluations or verifications related to the Program, as the City deems necessary. Further, the City may, at its expense, audit or have audited, all personnel and financial records related to the Program. iv. Default and Termination. a. Notice. In the event Participant shall fail to comply with any of the covenants, terms, or provisions of this Agreement including, without limitation, Participant's failure to: (i)comply Page 4 of 18 with the Program Guidelines; (ii) utilize Award funds for the Qualified Expenses as purported; (iii) timely submit reports or documentation when due, as required under this Agreement; or(iv)comply with any other term or condition of this Agreement, the City Manager or designee shall issue written notice to the Participant and provide Participant with thirty (30) days to cure the default. If, at the City Manager's sole discretion, the default is cured within that period, continued participation in the Program may be allowed. If, however, the Participant fails to cure the default, or defaults two or more times within a period of one (1)year, no further cure period shall be allowed, and upon written notice to Participant, the City Manager may terminate this Agreement, with written notice to the Participant, thereby relieving the City of any further obligation to Participant under this Agreement. In the event Participant shall fail to comply with any of the covenants, terms, or provisions of this Agreement including, without limitation, Participant's failure to: (i) comply with the Program Guidelines; (ii) utilize Award funds for the Qualified Expenses as purported; (iii) timely submit reports or documentation when due, as required under this Agreement; or(iv)comply with any other term or condition of this Agreement, the City Manager or designee shall issue written notice to the Participant and provide Participant with thirty (30)days to cure the default. If, at the City Manager's sole discretion, the default is cured within that period, continued participation in the Program may be allowed. If, however, the Participant fails to cure the default, or defaults two or more times within a period of one (1) year, no further cure period shall be allowed, and upon written notice to Participant, the City Manager may terminate this Agreement, with written notice to the Participant, thereby relieving the City of any further obligation to Participant under this Agreement. b. Delinquent Fees and Taxes. Where a Participant is delinquent in paying its taxes, fines, or any other fees due to the City, including in the City's regulatory capacity, or in connection with any other agreements between the City and Participant, the City may withhold any further Subsidy Payments until the Participant becomes current. Where a Participant is more than one (1) year delinquent, the Participant's Award may be canceled and/or the Participant may be disqualified from participating in the Program; following such cancellation or disqualification, the City shall have no further obligation to the Participant under this Agreement. c. Fraud or Material Misrepresentations. Additionally, if the default is of a nature that cannot be cured, such as fraud or a material misrepresentation in connection with Participant's performance under this Agreement, the termination shall be effective upon receipt of the termination notice and no cure period shall apply. d. Recapture of Funds. Further, in the event that the City, in its sole discretion, finds that the Award funds were ineligible payments under the terms of this Agreement, whether as a result of fraud, misrepresentation, or negligence of Participant, Participant shall be required to repay to the City all or a portion of the Award payments received by Participant, due and payable within thirty (30) days from the date Participant receives a written demand for recapture from the City. e. Miscellaneous. Participant further acknowledges and agrees that any Default may, at the City's sole discretion, render Participant ineligible for any future Award funds. These Page 5 of 18 provisions shall not waive or preclude the City from pursuing any and all remedies at law and in equity. Notwithstanding any provision of this Agreement to the contrary, and without regard to whether City has exercised the Default provisions thereof, the City reserves the right, at its sole and absolute discretion, to discontinue funding of the Award if it is not satisfied with the terms of the lease, the business activities conducted at the Property or Participant's performance under this Agreement. v. Florida Public Records Law. a. Participant shall comply with Florida Public Records law under Chapter 119, Florida Statutes, as may be amended from time to time. b. The term "public records" shall have the meaning set forth in Section 119.011(12), which means all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. c. Pursuant to Section 119.0701 of the Florida Statutes, if Participant meets the definition of "Contractor" as defined in Section 119.0701(1)(a), Participant shall: 1. Keep and maintain public records required by the City to perform the service; 2. Upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Florida Statutes or as otherwise provided by law; 3. Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed, except as authorized by law, for the duration of the contract term and following completion of this Agreement if Participant does not transfer the records to the City; 4. Upon completion of this Agreement, transfer, at no cost to the City, all public records in possession of Participant or keep and maintain public records required by the City to perform the service. If Participant transfers all public records to the City upon completion of this Agreement, Participant shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If Participant keeps and maintains public records upon completion of this Agreement, Participant shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City. Page 6 of 18 d. Request for Records; Noncompliance. 1. A request to inspect or copy public records relating to the City's contract for services, must be made directly to the City. If the City does not possess the requested records, the City shall immediately notify Participant of the request, and Participant must provide the records to the City or allow the records to be inspected or copied within a reasonable time. 2. Participant's failure to comply with the City's request for records shall constitute a breach of this Agreement, and the City, at its sole discretion, may: (1)unilaterally terminate this Agreement; (2) avail itself of the remedies set forth under this Agreement; and/or(3) avail itself of any available remedies at law or in equity. 3. If Participant fails to provide the public records to the City within a reasonable time may be subject to penalties under s. 119.10. e. Civil Action. 1. If a civil action is filed against Participant to compel production of public records relating to the City's contract for services, the court shall assess and award against Participant the reasonable costs of enforcement, including reasonable attorneys' fees, if: i. The court determines that Participant unlawfully refused to comply with the public records request within a reasonable time; and ii. At least 8 business days before filing the action, the plaintiff provided written notice of the public records request, including a statement that Participant has not complied with the request, to the City and to Participant. 2. A notice complies with subparagraph (1)(ii) if it is sent to the City's custodian of public records and to Participant at Participant's address listed on its agreement with the City or to Participant's registered agent. Such notices must be sent by common carrier delivery service or by registered, Global Express Guaranteed, or certified mail, with postage or shipping paid by the sender and with evidence of delivery, which may be in an electronic format. 3. If Participant complies with a public records request within 8 business days after the notice is sent, Participant shall not be liable for the reasonable costs of enforcement. Page 7 of 18 f. IF PARTICIPANT HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO PARTICIPANT'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS: CITY OF MIAMI BEACH ATTENTION: RAFAEL E. GRANADO, CITY CLERK 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 EMAIL: RAFAELGRANADO@MIAMIBEACHFL.GOV PHONE: 305-673-7411 vi. Inspector General Audit Rights. a. Pursuant to Section 2-256 of the Code of the City of Miami Beach, the City's Office of the Inspector General may, on a random basis, perform reviews, audits, inspections and investigations on all City contracts, throughout the duration of said contracts. This random audit is separate and distinct from any other audit performed by or on behalf of the City. b. The Office of the Inspector General is authorized to investigate City affairs and empowered to review past, present and proposed City programs, accounts, records, contracts and transactions. In addition, the Inspector General has the power to subpoena witnesses, administer oaths, require the production of witnesses and monitor City projects and programs. Monitoring of an existing City project or program may include a report concerning whether the project is on time, within budget and in conformance with the contract documents and applicable law. The Inspector General shall have the power to audit, investigate, monitor, oversee, inspect and review operations, activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal)submittals, activities of Participant, its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. Pursuant to Section 2-378 of the City Code, the City is allocating a percentage of its overall annual contract expenditures to fund the activities and operations of the Office of Inspector General. c. Upon ten (10) days written notice to Participant, Participant shall make all requested records and documents available to the Inspector General for inspection and copying. The Inspector General is empowered to retain the services of independent private sector auditors to audit, investigate, monitor, oversee, inspect and review operations activities, performance and procurement process including but not limited to project design, bid specifications, (bid/proposal) submittals, activities of Participant, its officers, agents and employees, lobbyists, City staff and elected officials to ensure compliance with the contract documents and to detect fraud and corruption. Page 8 of 18 d. The Inspector General shall have the right to inspect and copy all documents and records in Participant's possession, custody or control which in the Inspector General's sole judgment, pertain to performance of the contract, including, but not limited to original estimate files, change order estimate files, worksheets, proposals and agreements from and with successful subcontractors and suppliers, all project-related correspondence, memoranda, instructions, financial documents, construction documents, (bid/proposal)and contract documents, back-change documents, all documents and records which involve cash, trade or volume discounts, insurance proceeds, rebates, or dividends received, payroll and personnel records and supporting documentation for the aforesaid documents and records. e. Participant shall make available at its office at all reasonable times the records, materials, and other evidence regarding the acquisition (bid preparation)and performance of this Agreement, for examination, audit, or reproduction, until three (3) years after final payment under this Agreement or for any longer period required by statute or by other clauses of this contract. In addition: 1. If this Agreement is completely or partially terminated, Participant shall make available records relating to the work terminated until three (3) years after any resulting final termination settlement; and 2. Participant shall make available records relating to appeals or to litigation or the settlement of claims arising under or relating to this Agreement until such appeals, litigation, or claims are finally resolved. f. The provisions in this section shall apply to Participant, its officers, agents, employees, subcontractors and suppliers. Participant shall incorporate the provisions in this section in all subcontracts and all other agreements executed by Participant in connection with the performance of this Agreement. g. Nothing in this section shall impair any independent right to the City to conduct audits or investigative activities. The provisions of this section are neither intended nor shall they be construed to impose any liability on the City by Participant or third parties. vii. Conflicts of Interest. a. Participant agrees to adhere to and be governed by all applicable State, County, and City conflict of interest laws including, without limitation, State of Florida Code of Ethics for Public Officers and Employees, as set forth in Chapter 112, Florida Statutes, as may be amended from time to time; Miami-Dade County Conflict of Interest and Code of Ethics Ordinance, as set forth in Section 2-11.1 of the Miami-Dade County Code, as may be amended from time to time; and by Section 2-446 et seq. of the City of Miami Beach Code of Ordinances regarding voting and conflicts and disclosures of financial interests, as may be amended from time to time; all of which are incorporated herein by reference as if fully set forth herein; and further acknowledges the following: Page 9 of 18 1. No officer, director, employee, agent, or other consultant of the City or a member of the immediate family or household of the aforesaid has directly or indirectly received or been promised any form of benefit, payment or compensation, whether tangible or intangible, in connection with the approval of this Program; 2. There are no undisclosed persons or entities interested with the Participant in this Agreement. This Agreement is entered into by Participant without any connection with any other entity or person making a request for funding in the same Program, and without collusion, fraud or conflict of interest. No elected or appointed officer or official, director, employee, agent or other consultant of the City, or of the State of Florida (included elected and appointed members of the legislative and executive branches of government), or a member of the immediate family or household of any of the aforesaid: is interested on behalf of or through the Participant directly or indirectly in any manner whatsoever in the execution or the performance of this Agreement, or in the services, supplies or work, to which this Agreement relates or in any portion of the revenues; or ii. is an employee, agent, advisor, or consultant to the Participant or to the best of the Participant 's knowledge any subcontractor or supplier to the Participant. 3. Subject to the exceptions and provisions of(c)(2) through (c)(6) of Section 2-11.1 of the Miami-Dade County Code, Commissioners, autonomous personnel, quasi- judicial personnel, advisory personnel, department personnel, employees or member of his or her immediate family(all as defined in Section 2-11.1(b)of the Miami-Dade County Code) of the City are prohibited from entering into any contract or transacting any business in which he or she or a member of his or her immediate family has a financial interest, direct or indirect, with the City or any person or agency acting for the City, and any such contract, agreement or business engagement entered in violation of this subsection shall render the transaction voidable. 4. Subject to the exceptions and provisions of(c)(2) through (c)(6) of Section 2-11.1 of the Miami-Dade County Code, City Commissioners, autonomous personnel, quasi-judicial personnel, advisory personnel, department personnel, employees or a member of the immediate family of the aforesaid is prohibited from entering into any contract or transacting any business through a firm, corporation, partnership or business entity in which the aforesaid or any member of his or her immediate family has a controlling financial interest (as defined in Section 2-11.1(b)of the Miami-Dade County Code), direct or indirect, with the City or any person or agency acting for the City, and any such contract, agreement or business engagement entered in violation of this subsection shall render the transaction voidable. Page 10 of 18 5. Pursuant to Section 2-446 of the City's Code of Ordinances, it is the policy of the City Commission that no officer or employee of the City, or any of its agencies or subdivisions, and no member of the City Commission, shall have any interest, financial or otherwise, direct or indirect, or engage in any business transaction, or professional activity, or incur any obligation of any nature that is in substantial conflict with the proper discharge of his/her duties in the public interest. 6. The provisions of this Article vii are supplemental to, not in lieu of, all applicable laws with respect to conflict of interest. In the event there is a difference between the standards applicable under This Article and those provided by statute, the stricter standard shall apply. 7. In the event Participant has no prior knowledge of a conflict of interest as set forth above and acquires information which may indicate that there may be an actual or apparent violation of any of the above, Participant shall promptly bring such information to the attention of the City's representative. Participant shall thereafter cooperate with the City's review and investigation of such information and comply with the instructions Participant receives from the City's representative in regard to remedying the situation. b. Prohibition on Contracting with an Individual or Entity which has Performed Services for compensation to a Candidate for City Elected Office. 1. Tenant warrants and represents that,within two(2)years after the Effective Date, Tenant has not received compensation for services performed for a candidate for City elected office, as contemplated by the prohibitions and exceptions of Section 2-379 of the City Code. 2. For the avoidance of doubt, the restrictions on contracting with the City pursuant to Section 2-379 of the City Code shall not apply to the following: Any individual or entity that provides goods to a candidate for office; ii. Any individual or entity that provides services to a candidate for office if those same services are regularly performed by the individual or entity in the ordinary course of business for clients or customers other than candidates for office. This includes, without limitation, banks, telephone or internet service providers, printing companies, event venues, restaurants, caterers, transportation providers, and office supply vendors; or iii. Any individual or entity which performs licensed professional services (including for example, legal or accounting services. viii. Participant's Compliance with Anti-Human Trafficking Laws. Participant agrees to comply with Section 787.06, Florida Statutes, as may be amended from time to time, and has executed the Certification of Compliance with Anti-Human Trafficking Laws, as required by Section 787.06(13), Florida Statutes, a copy of which is attached hereto as Exhibit 4. Page 11 of 18 ix. Prohibition on Contracting with a Business engaging in a Boycott. Participant warrants and represents that it is not currently engaged in, and will not engage in, a boycott, as defined in Section 2-375 of the City Code. In accordance with Section 2-375.1(2)(a) of the City Code, Participant hereby certifies that Tenant is not currently engaged in, and agrees for the duration of this Agreement to not engage in, a boycott of Israel. x. Notices. Any notices required under this Agreement will be effective when delivered to the City in writing and addressed to the City Manager's designee: Economic Development Director 1700 Convention Center Drive Miami Beach, FL 33139 305-673-7000 ext. 26186 RickelleWilliams@miamibeachfl.gov Any required notice to Participant shall be delivered in writing to Participant's contact. Article V/ Miscellaneous Provisions Indemnification. Participant agrees to indemnify, defend, save and hold harmless the City, its officers, employees or agents, from any and all claims, liability, lawsuits, damages and causes of action which may arise out of this Agreement, including Participant's participation in this Program. ii. Assignment. Participant shall not be permitted to assign this Agreement, and any purported assignment will be void, and shall be treated as an event of default pursuant to this Agreement. iii. Discrimination. Participant accepts and agrees to comply with the following Special Conditions: a. Participant hereby agrees that it will comply with Title VII of the Civil Rights Act of 1964(Pub. L. 88-352)(Title VII), as amended, as it appears in volume 42 of the United States Code, beginning at Section 2000e, prohibiting employment discrimination based on race, color, religion, sex and national origin. b. Participant hereby agrees that it will comply with City's Human Rights Ordinance as codified in Chapter 62 of the City Code, as may be amended from time to time, prohibiting discrimination in employment, housing and public accommodations on account of actual or perceived race, color, national origin, religion, sex, intersexuality, gender identity, sexual orientation, marital and familial status, age, disability, ancestry, height, weight, domestic partner status, labor organization membership, familial situation, or political affiliation. c. The City endorses, and Participant shall comply with, the clear mandate of the Americans with Disabilities Act of 1990 (ADA) to remove barriers, which prevents qualified individuals with disabilities from enjoying the same employment opportunities that are available to persons without disabilities. Page 12 of 18 d. The City also endorses the mandate of the Rehabilitation Act of 1973 and Section 504 and prohibits discrimination on the basis of disability and requires that Participant provides equal access and equal opportunity and services without discrimination on the basis of any disability. iv. Compliance with Applicable Laws. In its operation of the business at the Property, Participant shall comply with all applicable laws, ordinances, and regulations of the City, Miami-Dade County, the State of Florida, and the federal government, as applicable. v. Governing Law, Venue, and Attorney's Fees. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The exclusive venue for any litigation arising out of this Agreement shall be Miami-Dade County, Florida, if in State court, and the U.S. District Court, Southern District of Florida, if in federal court. In connection with any litigation arising out of this Agreement, each party shall bear their own costs and attorney's fees. BY ENTERING INTO THIS AGREEMENT, THE CITY AND PARTICIPANT EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK Page 13 of 18 IN WUNT NESS W/HEREOF,the parties hereto have executed this Agreement. FOR CITY: ATTEST: By: "#eaf6'$7#86609% 3/>/202s Date CITY OF MAM BEACH,FLORIDA FOR PARTNCPANT: ATTE ST: By: Dysha_llelyre Print Name and Title Date SB8BC,LLC,its Member/ManagerI APPROVED AS TOFORM&LANGUAGE %OR EXE-,3,TON QlH.kl qelr Page 14 0f 18 City Attorney r M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Applicant Profile Applicant Type Organization Name lorenzo Borghese Legal Name South Beach Brewing Company, LLC Email borghesel@southbeachbrew.com Primary Phone (917)570-0877 Alternate Phone (305)397-5246 Address 1500 Bay Road 920 Miami Beach, Florida 33139 UNITED STATES Website https://www.southbeachbrew.com/ FEIN/Tax ID 84-2318910 Fiscal Year End Date 12/31 Unique Entity ID(UEI) Mission Statement To provide culture, entertainment, art and craft food and beverages to all customers leaving them with lifetime, "I love right now," memories and experiences Organization History Our location offiically opened for business at 210 11th street earlier this year. #CLSAPP24250002 Page 1 of 15 M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Intent to Apply Welcome to the Intent to Apply section for the Miami Beach Commercial Lease Subsidy Program! By expressing your"Intent to Apply", you're taking the first step towards accessing financial assistance with your commercial lease in the Art Deco/MiMo Commercial Character Overlay District. Submitting this form is mandatory before gaining access to the Program application form. Before you begin, please review the Program Guidelines.. Compliance with the Program Guidelines is key to submission of a complete and valid application. Submitting your"Intent to Apply" requires providing answers to a series of question that will help us understand your commercial lease and confirm your eligibility for Program participation. I. Applicant of Record: Identify who will handle the application process and whether that individual represents the property owner or a prospective business looking to take advantage of the grant program. II. Subject Property: For the commercial property to be leased by a new business, provide the property owner name, address, and tax folio. III. Existing Tenant:Answer yes or no; whether an existing business currently operates at the subject property. If applicable, provide the name of the existing business operating onsite, business owner/contact information (name, phone number, email address)business tax receipt(BTR) number and indicate the type of business establishment. IV. Prospective Tenant: Is there a prospective tenant under consideration for the properly? If applicable, provide the name of the prospective business, business owner/contact information (name, phone number, email address), business tax receipt(BTR) number, and indicate the type of business establishment. Please note that submitting an Intent to Apply does not complete the application. Once you submit your intent, please contact the City's Economic Development Department with your application number to schedule your Pre-Submittal Conference (PSC). City of Miami Beach Economic Development Department Email: mbbiz@miamibeachfl.gov Phone:305-673-7572 During the PSC, you'll discuss your application, business needs, and how the Commercial Lease Subsidy Program can be tailored to maximize your business growth in Miami Beach. Completion of a PSC is required to move forward and submit an official application. #CLSAPP24250002 Page 2 of 15 M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917)570-0877 Email: borghesel@southbeachbrew.com Thank you for choosing Miami Beach as the location for your business, and we look forward to assisting you in your application journey! I. APPLICANT OF RECORD The Applicant of Record is the individual/entity that will submit the application, assume responsibility for the grant,and to whom funds will be disbursed. Please specify who will fill out the application and handle the application process. Full Name South Beach Brewing Company, LLC Phone Number 9175700877 Email Address borghesel@southbeachbrew.com Is the Applicant of Record a . Property owner whose commercial property will be subject of the application • Business wishing to participate as tenant at a property owned by someone else Please select one: Tenant Business Subject Property Occupancy Status Please select one: The Subject Property is currently occupied II.SUBJECT PROPERTY For Applicants of Record that own the commercial property that will be leased by a new business (currently vacant). Please ensure that the subject property is located within the Program's geographic boundaries. Subject Property Address Subject Property Folio Number Please provide the 13-digit parcel identifier assigned to the property by Miami-Dade County commencing with "02-". #CLSAPP24250002 Page 3 of 15 M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name. lorenzo Borghese Phone: (917)570-0877 Email: borghesel@southbeachbrew.com Owner of Title Please identify the owner of title to the Subject Property. Owner Authorized Representative Please identify an Authorized Representative if the Property Owner is not a natural person. (May be completed as"N/A" if it doesn't apply) Owner Authorized Representative Email II. SUBJECT PROPERTY For Applicants of Record that own the commercial property with an existing Tenant Business. Please ensure that the subject property is located within the Program's geographic boundaries. Business Registered Name Business D/B/A(if applicable) Primary Business Activities Date Business Operation began at Subject Property Business Tax Receipt Number Authorized Representative Name &Title Authorized Representative Email II. SUBJECT PROPERTY For Applicants of Record that are prospective Tenant Business. Please ensure that the subject property is located within the Program's geographic boundaries. Yes Prospective Property Address 210 11th Street Name of Prospective Property Landlord/Owner #CLSAPP24250002 Page 4 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Julaug Invest 2, LLC III.TENANT BUSINESS APPLICANT Information regarding the Tenant Business. If Property Owner is Applicant of Record and Subject Property is currently vacant, respond with "Vacant"to each question. Business Registered Name South Beach Brewing Company, LLC Business D/B/A(if applicable) South Beach Brewing Company Primary Business Activities We are a family-friendly establishment which focuses on local craft beer, food, art and entertainment. We provide a unique opportunity for activities consistent with the Miami Beach brand including open mic nights, karaoke, &games for the entire family including chess nights. Our tap room contains the only hand-crafted beers named after this city. It includes a wide variety of murals created by the late, David LeBatard and two dioramas of South Beach, one highlighting the art deco buildings. Registered Address 1500 Bay Road, Unit 920, Miami Beach Existing Miami Beach Locations(if any) 210 11th Street, Miami Beach Acknowledgements As the applicant, please confirm the acknowledgments below. . I have read and understood the Program Guidelines. • I understand that submitting an Intent to Apply Letter does not constitute a complete application. . I understand that I must complete a Pre-Submittal Conference with the Miami Beach Economic Development Department in order to move forward with an application. I have read and understood the Program Guidelines. I understand that submitting an Intent to Apply Letter does not constitute a complete application. I understand that I must complete a Pre-Submittal Conference with the Miami Beach Economic Development Department in order to move forward with an application. #CLSAPP24250002 Page 5 of 15 M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Subject Property Subject Property Address: 210 11th Street Miami-Dade County Tax Folio: 02-3234-008-1210 Property Title Owner Name/Entity: Julaug Invest 2, LLC #CLSAPP24250002 Page 6 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Property Owner Information Business Registered Name: South Beach Brewing Company, LLC Business dba: (if applicable) South Beach Brewing Company Authorized Representative Name Lorenzo Borghese Authorized Representative Name: Lorenzo Borghese Authorized Representative Email: borghesel@southbeachbrew.com Authorized Representative Phone: 917-570-0877 Website: www.southbeachbrew.com Mailing Address: 1500 Bay Road, Unit 920, Miami Beach, FL 33139 Has the company or any of its officers ever been subjected to criminal or civil fines and penalties? No If yes, briefly explain: Federal Employer Identification (FEIN): 84-2318910 Miami Beach Business Tax Receipt(BTR): BTR007716-10-2019 Annual Miami Beach BTR Fee: $2319 #CLSAPP24250002 Page 7 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Florida Sales Tax Registration Number: (if applicable) 2473116 NAICS Code(s): 722511 SIC Code(s): 5812 #CLSAPP24250002 Page 8 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Proposed Lease Agreement Tenant Business: Arts& Culture Business Landlord Name: Julaug Invest 2, LLC Are Landlord and Tenant related to each other? "Related" means a relationship that might call into question the arms-length nature of a customary transaction because the parties are not independent or on equal footing, including, but not limited to, relatives and business partners. No If yes, please briefly explain Lease Execution Date: 2019-08-01 Lease Effective Date: 2019-08-01 Lease Term Expiration Date: 9/1/2026 Rent Commencement Date: 03/01/2020 Initial Term (months): Twenty five months from commencement date Renewal Terms (months): two sixty month options Size of Leased Premises (sq.ft.): 2,457 Rent(annual& monthly): $7,827.92/$93,935.04 Mortgage(annual & monthly): #CLSAPP24250002 Page 9 of 15 M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917)570-0877 Email: borghesel@southbeachbrew.com 0 Lease-related Expenses: Utilities, Trash Room, Energy, Cleaning. Briefly explain the type of expenses for which reimbursement will be requested Rent and electricity, water and trash room expenses. Required Annual Reporting of Business Activity Participants will be required to annually submit information regarding the business,for use by the City in tracking the Program's impact on commercial activity.The data requested includes, but is not limited to,the amount of capital investment in real and personal property associated with the property (e.g.,costs related to construction, renovation, buildout improvements,and/or fixtures,furniture,and equipment(FF&E))and employment and wage data(e.g., number of full-and part-time jobs at the property and associated wages).The information submitted will only be used internally by the City for Program tracking and will have no bearing on the participant's Program eligibility. Failure to comply with the City's request for information may result in the denial of reimbursement funds. I have read and understood the Annual Reporting requirement #CLSAPP24250002 Page 10 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917)570-0877 Email: borghesel@southbeachbrew.com Existing Tenant / NonConforming Business Does subject property contain an active business operation? Yes South Beach Brewing Company, LLC Business dba: (if applicable) South Beach Brewing Company Primary Business Activities: Full restaurant serving craft beers with an art element(murals)created by Lebo Authorized Representative Name&Title Lorenzo Borghese Authorized Representative Email borghesel@southbeachbrew.com Authorized Representative Phone: 9175700877 Website: www.southbeachbrew.com Mailing Address: 1500 Bay Road, Unit 920, Miami Beach, FL 33139 Has the company or any of its officers ever been subjected to criminal or civil fines and penalties? No If yes, please provide details Federal Employer Identification (FEIN): Same as on previous pages Miami Beach Business Tax Receipt(BTR): Same as on previous pages Annual Miami Beach BTR Fee: #CLSAPP24250002 Page 11 of 15 MIAMI BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Same as on previous pages Florida Sales Tax Registration Number Same as on previous pages NAICS Code(s): (Look up code here:https://www.naics.com/search/) Same as on previous pages SIC Code(s): Same as on previous pages #CLSAPP24250002 Page 12 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Prospective / New Tenant (Permitted Use or Art & Culture Business) Has a prospective tenant has been identified for Subject property? No Business Registered Name Business dba Primary Business Activities Authorized Representative Name &Title Authorized Representative Email Authorized Representative Email Website: Mailing Address: Has the company or any of its officers ever been subjected to criminal or civil fines and penalties? If yes, please briefly explain: Federal Employer Identification (FEIN): Miami Beach Business Tax Receipt(BTR): Annual Miami Beach BTR Fee: Florida Sales Tax Registration Number (if applicable) NAICS Code(s): SIC Code(s): Estimated amount of annual reimbursement to be requested: #CLSAPP24250002 Page 13 of 15 M I AM I B EAC H Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917)570-0877 Email: borghesel@southbeachbrew.com Acknowledgement and Application Authorization The Applicant acknowledges that adherence to the application and Program Guidelines is a requirement for receipt of reimbursement award funds. Failure to comply with the Program Guidelines may result in the loss of eligibility. Please check each statement in acknowledgement of the following: . I acknowledge that receipt of any Program funds is conditioned upon continuous compliance with the terms and conditions of the application and Agreement,as authorized by resolution of the City Commission. • I acknowledge that failure to comply with the terms and conditions of the approved application and Agreement may result in my disqualification from the Program,the forfeiture of any unissued award funds,and the requirement for repayment of funds I have already received. • I agree to refrain from executing a lease agreement,or extension thereof,for the subject property of this application,prior to final approval of my participation in the Program,as confirmed in writing by the City of Miami Beach. . I agree that Program participation requires that any lease agreement for the subject property will contain a statement in standard font size that the property will be subject to these Program requirements, rents payable will be reduced by an amount commensurate with the award,and participation may be revoked if,during the Program term,any outstanding charges are unpaid for more than one year. . I acknowledge that the subject property cannot be approved for the Program if encumbered by any delinquent ad valorem taxes, municipal and county liens,code enforcement violations, judgments, and encumbrances of any kind. . I agree to maintain business and financial records related to my business,the subject property, and the tenant,and submit summary reports of such records,as requested by the City of Miami Beach as part of reimbursement claim submissions. . I agree to comply with efforts to monitor and verify my compliance with the Program, including the City of Miami Beach's requests to review business records and/or perform onsite visits. Receipt of any Program funds is conditioned upon continuous compliance with the terms and conditions of the application and Agreement, as authorized by resolution of the City Commission. Failure to comply with terms and conditions of the approved application and Agreement may result in my disqualification from the Program, the forfeiture of any unissued award funds, and the requirement for repayment of funds I have already received. I agree to refrain from executing a lease agreement, or extension thereof, for the subject property of this application, prior to final approval of my participation in the Program, as confirmed in writing by the City of Miami Beach. Program participation requires any lease agreement for the subject property to contain a statement that the property will be subject to these Program requirements, rents payable will be reduced by an amount ommensurate with the award. #CLSAPP24250002 Page 14 of 15 M I AM I BEACH Miami Beach Economic Development - Commercial ECONOMIC DEVELOPMENT Lease Subsidy Application FY24-25 South Beach Brewing Company, LLC Application #CLSAPP24250002 Name: lorenzo Borghese Phone: (917) 570-0877 Email: borghesel@southbeachbrew.com Participation may be revoked if, during the Program term, any outstanding lease agreement charges are unpaid for more than one year. Subject property cannot be approved for the Program if encumbered by any delinquent ad valorem taxes, municipal and county liens, code enforcement violations, judgments, and encumbrances of any kind. I agree to maintain business and financial records related to my business, the subject property, and the tenant, and submit summary reports of such records, as requested by the City of Miami Beach as part of reimbursement claim submissions. I agree to comply with efforts to monitor and verify my compliance with the Program, including the City of Miami Beach's requests to review business records and/or perform onsite visits. Signature Affidavit-Property Owner Signatures from all involved parties is required for the submission of an application.The signatory must have legal signing authority to bind the company to a contract, i.e.,executive officers and owners. By signing this application,the Applicant(s)attests to be duly authorized to execute on behalf of the company and its legal owner,as applicable.The Applicant confirms that it is duly authorized to enter into contracts related to the subject property.Through application to the Program,the Applicant provides consent to the City of Miami Beach to verify the company's business licensure, ownership of property,and business records related to the company and the subject property. The Applicant acknowledges that adherence to the application and Program Guidelines is a requirement for receipt of reimbursement payments. Failure to comply with Program Guidelines may result in the loss of eligibility for receipt of funds. Signed Affi.pdf Signature Affidavit-New Tenant Business No File Uploaded (if applicable) No File Uploaded #CLSAPP24250002 Page 15 of 15 Signatures from all involved parties is required for the submission of an application.The signatory must have legal signing authority to bind the company to a contract,i.e., executive officers and owners. By signing this application. the Applicant(s)attests to be duly authorized to execute on behalf of the company and its legal owner,as applicable. The Applicant confirms that It Is duly authorized to enter Into contracts related to the subject property. Through application to the Program, the Applicant provides consent to the City of Miami Beach to verify the company's business licensure,ownership of property,and business records related to the company and the subject property. The Applicant acknowledges that adherence to the application and Program Guidelines Is a requirement for receipt of reimbursement payments.Failure to comply with Program Guidelines may result in the loss of eligibility for receipt of funds. PROPERTY OWNER Name: ItVYe- Leclerc n Company: U I CL_U q I11\ e L St ) LLC Title: OWNER •T Signature: Date: 12/04/2024 NEW TENANT BUSINESS Name: Company: The: Signature: Date: EXISTING TENANT BUSINESS(if applicable) Name: L€t cvl z o �O✓j�IC S� Company: SOcrlh Beach 13reiviri j Ccr o i LLC -}�V Title: 1de `J Signature: Date: Z/y/; Internal City use only Date Received: Approval Signature: Printed Name: Target Commission Meeting Date: 13 MIAMIBEACH Exhibit 2 PROGRAM GUIDELINES Page 16 of 18 xflit - City of Miami Beach COMMERCIAL LEASE SUBSIDY PROGRAM Welcoming businesses to the Art Deco Cultural District MIAMIBEACH Commercial Lease Subsidy Program Table of Contents Program Overview 2 I. Program Purpose II. Incentive Award Program Guidelines 3 III. Eligibility Requirements A. Geographic Requirement B. Business Type Requirement 1. Type 1: Transition from Legal, Nonconforming Business to Permitted/Conforming Use 2. Type 2: New-to-Market Arts and Culture Use C. Eligible Business Types: 1. Type 1: Existing Tenant(Nonconforming Business)replaced by a Permitted/Conforming Use 2. Type 2: New-to-Market Arts and Culture Tenants IV. Before You Apply 5 V. Application Process 5 VI. Application Evaluation Criteria 6 VII. Compliance Requirements 7 VIII. Reimbursement Payments 8 Application Reference Form 10 A. Subject Property B. Property Owner C. Proposed Lease Agreement D. Existing Tenant E. Prospective Tenant F. Applicant Acknowledgement and Authorization G. Application Signature ADCD Map 14 1 MIAMIBEACH Commercial Lease Subsidy Program PROGRAM OVERVIEW The Art Deco / MiMo Commercial Character Overlay District (the "ADCD") offers exceptional cultural, commercial, and entertainment amenities that are vital to the Miami Beach economy and drive its tourism and hospitality industry. The City of Miami Beach (the "City") is committed to promoting and attracting vibrant commercial activity, with a focus on businesses and family-friendly activities in the ADCD that contribute to the City's rich cultural arts legacy. The Miami Beach City Commission created the Commercial Lease Subsidy Program (the"Program")as a reimbursement-based incentive grant to reimburse a portion of eligible leasing-related expenses(e.g.,rent, mortgage fees, insurance, real estate taxes, and City business tax receipts (BTRs) for participating commercial properties within the ADCD that are leased to a new or existing commercial tenant whose business activities promote the Program's purpose. I. Program Purpose. The Program's mission is to attract community-focused spaces that elevate the ADCD and enhance the visitor experience and resident quality of life. To accomplish this objective, the Program offers a financial incentive for qualified participants to activate commercial properties with desirable retail uses.To be eligible, businesses must satisfy one of two criteria: A. Properties currently occupied by legal nonconforming** businesses that transition to a permitted/conforming business model. B. New-to-market*arts and culture uses; or *New-to-market, for purposes of the Program, refers to businesses without an existing location within the ADCD, as further described in the Program Guidelines. **Legal nonconforming,as further described in the Program Guidelines, refers to a lawfully established use that is no longer permitted, or otherwise restricted, under the ADCD zoning regulations. II. Incentive Award. Program participants compliant with Program Guidelines are eligible to receive both of the following: A. Reimbursement of Qualified Expenses Reimbursement,throughout the three(3)year Program term of"Qualified Expenses"in an amount not to exceed $2,500 per month, $20,000 per year, and$60,000 over three(3)years. Qualified Expenses are expenses, documented as paid, related to any of the following: 1. For lessee/tenant business: • Rent • Renter's insurance 2. For property owner/landlord: • Mortgage fees • Property insurance • Real estate taxes (including assessments) B. Reimbursement of Miami Beach Business Tax Receipt(BTR) Fees Reimbursement, throughout the three (3) year Program term, of the annual fees associated with payment of the City's business tax receipt(BTR). Reimbursement of BTR fees is not subject to the maximum award amount limitation applied to Qualified Expenses. 2 MIAMIBEACH Commercial Lease Subsidy Program PROGRAM GUIDELINES III. Eligibility Requirements. The Program is intended to strengthen and transform the ADCD's commercial corridors by: • Encouraging property owners to transition from nonconforming commercial uses to permitted/conforming uses; and • Attracting quality businesses that promote arts and culture. Upon recommendation of the City Manager, the City Commission, in its sole discretion, may consider, or waive, any eligibility criteria. A. Geographic Requirement. The Program is only available to properties with a physical location inside the boundaries of the ADCD, an overlay district codified in City Code Chapter 142, Article Ill, Division 12, as may be amended from time to time (the "ADCD Overlay Regulations"). Please refer to the ADCD Map herein and City staff will confirm that the subject property is eligible to participate during the Applicant's pre-submission conference. B. Business Type Requirement. The Program prioritizes supporting the two following business models; however, the City Commission, at its discretion, may waive any of the eligibility criteria upon the recommendation of the City Manager: 1. Transition from nonconforming use.A business with nonconforming business activities (i.e., a business prohibited or restricted in the ADCD by the ADCD Overlay Regulations is replaced with another business that is considered a"permitted use"in the City Code. Property owner or existing tenant business may apply as Applicant to the Program. 2. Arts and culture related use. A qualified arts and culture activity that is"new-to-market"within the ADCD may apply. Qualified arts and culture activities or uses are further explained below. Property owner or arts and culture operators/businesses seeking to lease space in the ADCD may apply as Applicant to the Program. C. Eligible Business Types: 1. Business Type 1: Existing Tenant(Nonconforming Business) replaced by a Permitted/ Conforming Use. a. Eligible Applicants: Property owner or existing tenant business(a nonconforming use). To qualify under this application type, a property owner or existing tenant must apply with the intention of transitioning the existing business activities on the property from a nonconforming to permitted use. i. At the time of application submittal,the existing business/tenant occupying the property is a "legal, nonconforming business", i.e., prohibited or restricted in the ADCD and identified as such in the ADCD Overlay Regulations (see City Code Chapter 142, Article Ill. Division 12) ii. To be considered a legal nonconforming business, at the time of application submittal, the existing tenant /nonconforming business must be in continuous business operation with a valid, active Miami Beach BTR. BTR status is determined by the City Manager, or designee, in her/his sole 3 MIAMIBEACH Commercial Lease Subsidy Program discretion. iii. After application submittal,the new or prospective tenant/business must be a permitted/conforming use under the ADCD Overlay Regulations(see City Code Chapter 142, Article Ill, Division 12) that replaces the existing, nonconforming tenant. b. Eligible Categories of Nonconforming Businesses. The ADCD Overlay Regulations (see City Code Chapter 142, Article Ill, Division 12) lists specific business types that are prohibited and/or restricted in the ADCD. For an Applicant to submit a valid application under the Business Type 1 category, the existing tenant/ nonconforming business may fall within one of the following business types identified in the City Code. (Note that BTRs may identify a business by different terminology.) • Check cashing stores • Pawn shops • Pharmacies • Grocery stores • Package stores • Convenience stores • Souvenir and/or t-shirt shops • Tobacco/vape dealers • Marijuana dispensaries • Tattoo studios • Occult science establishments c. Requirement for Business Transition.To participate in the Program,the Applicant must apply when the existing tenant at the property is a nonconforming business, i.e., one of the above business types. Following application submittal, the nonconforming business must be replaced with a new or prospective business operation or activity that is considered a permitted/conforming use in the ADCD. To become eligible for reimbursement of Qualified Expenses,the new/prospective business must be a tenant pursuant to an executed lease agreement and the business must possess a valid and active Miami Beach BTR. The City Commission, at its discretion, may waive any of the eligibility criteria at the request and recommendation of the City Manager. 2. Business Type 2: New-to-Market Arts&Culture Tenants a. Eligible Applicants: Property owner or new business/tenant. To satisfy the "New to Market"requirement, the new/ prospective business must be an entity without an existing physical location in the ADCD, and whose presence furthers the goal of attracting high-quality arts and culture uses into the ADCD. Businesses are eligible if the new / prospective business already operates in Miami Beach at a physical address outside of the ADCD. Applications may be submitted by either: • Property owners seeking to activate their location with arts and culture uses, or • An arts and culture operator seeking to lease a property as a tenant. 4 MIAMIBEACH Commercial Lease Subsidy Program b. Following submission of an application, the property owner enters into a lease agreement for the subject property with a new tenant whose business promotes arts and culture, for example, creating an immersive and shareable experience that prioritizes customer engagement and leverages onsite activities and events, such as: • Experiential and artisanal retailers. For example, technology, design, art and/ or culture-driven retail and incubator-inspired artisan experiences, such as offering an opportunity for patrons to learn how to make, design, or craft their own artistic, decorative, musical, beauty,wellness,gastronomic,culinary,or sensory product,and low- scale performing arts and cultural spaces. • Interactive and activity-based spaces. For example, social media museums and artistic installations and activity- based and curated destinations of art, culture, design, recreation, leisure, wellness, and/or amusement. The City Commission,at its discretion,may waive any of the eligibility criteria at the request and recommendation of the City Manager. IV. Before You Apply. A. Carefully review Program Guidelines,application,and related materials. B. Contact the City's Economic Development Department to discuss your application, business needs, and whether your business furthers the Program objectives. City of Miami Beach Economic Development Department Subject:Commercial Lease Subsidy Program Email: mbbizmiamibeachfl.qov Phone: 305-673-7572 C. Submit an Intent to Apply on mbbiz.ciosmart.orq. D. Attend a mandatory Pre-Submission Conference to review your application materials.Once completed, you will be able to apply online. V. Application Process. A. After completing the mandatory Pre-Submission Conference, submit the online application on mbbiz.qosmart.orq B. Consideration for participation in the Program will not commence until an Applicant submits a complete application.Any prior communication with City staff related to the submission of an application does not constitute application submittal or consideration. C. The Application must be signed by an executive officer or owner of the named entity serving as Applicant. 1. Business Type 1 Applications (Transitioning from Nonconforming to Permitted/Conforming Use), the application must be executed by an authorized signatory of the Applicant of Record. 2. Business Type 2 Applications(Arts&Culture Use): a. If Applicant is an arts and culture business operator,the application must be signed by an owner or officer of the tenant business. b. If Applicant is a property owner/landlord to the new tenant business, the application must be signed by an authorized signatory for the owner of record of the property. Prior to formal approval of the application, the new tenant business must also sign the application to confirm acceptance of Program requirements. 5 MIAMIBEACH Commercial Lease Subsidy Program D. Review & Recommendation. The City will verify receipt of applications upon Applicant submittal. Applications must be evaluated by the City Administration for adherence to Program Guidelines prior to recommendation by the City Manager and consideration for approval by the City Commission. E. City Commission Approval. Following receipt of a complete application and initial review resulting in recommendation for approval, staff will inform the City Commission and schedule an application presentation at a subsequent City Commission meeting (applicable public notice and agenda deadlines apply). Staff will notify the Applicant when the application is scheduled for consideration at a public meeting. Executive leadership representing the Applicant is required to participate in-person or virtually at the City Commission meeting. F. Program Agreement. The City Commission-approved application shall serve as an exhibit to the Agreement between the City and the Program participant. The Agreement shall, at a minimum, specify: 1. The maximum amount of reimbursement payments the Applicant is eligible to receive throughout the Program term; 2. Acknowledgement that the City may have access to and review the financial and business records of the Applicant(both property owner and tenant business)and/or perform onsite visits to verify business activities contained in the application, Agreement, and reimbursement requests; 3. Acknowledgement that compliance with the terms and conditions of the executed Agreement is a requirement for the receipt of any reimbursement payment and that the participant's failure to comply with the terms and conditions of the Agreement may be deemed forfeiture of eligibility for receipt of reimbursement payments and constitute disqualification of eligibility for Program participation; 4. Acknowledgement that reimbursement payments are conditioned on and subject to specific annual appropriations by the City Commission sufficient to satisfy the amount of reimbursement payments under the approved Agreement. VI. Application Evaluation Criteria. A. Application evaluation and recommendation will include, but is not limited to,whether the Applicant's business activities accomplish the following: 1. Transition to or promote compatible uses that are permitted within the ADCD; 2. Enhance the City's reputation as a family-friendly destination for world-class cultural arts, recreation, leisure, and wellness; 3. Provide a unique opportunity for experiential and immersive activities consistent with the Miami Beach brand;and/or 4. Appeal to residents, tourists, and visitors alike; increase and diversify new employment opportunities; attract economic investment; and enhance property values. B. At the request and recommendation of the City Manager, the City Commission, in its discretion, may consider waiver of any conditions or criteria of eligibility. C. Discussions with the City about the Program, and the City's review and/or consideration of an application, are not to be construed as an entitlement or right conferred upon an Applicant, business, or property owner. 6 MIAMIBEACH Commercial Lease Subsidy Program VII. Compliance Requirements. Participants must maintain continuous compliance with Program requirements and obligations outlined in the Agreement. A. Executed Lease Agreement. An executed lease agreement between the property owner and the new tenant business for the property is not a prerequisite for application submittal. Participants shall only be deemed eligible to receive reimbursement of Qualified Expenses incurred pursuant to an executed and effective lease agreement between the property owner and new or existing tenant. For expenses to be considered eligible for reimbursement (among other conditions including approval by the City Commission), the lease agreement must be effective no later than 180 days following submission of an application to the Program. Subtenants are not eligible to request reimbursement. B. Requirement for Good Standing. 1. Business Type 1 -Nonconforming Business transitions to Permitted/Conforming Use a. Commencing at time of application and throughout Program term: The property owner and existing tenant / nonconforming business must both possess a valid Miami Beach BTR. Nonconforming businesses operating without a valid Miami Beach BTR are not in lawful existence and, therefore, the property is not eligible to participate in the Program. Existing tenant/nonconforming business, prospective business, and the property must be in good standing with the City and Miami-Dade County.Examples of factors that may affect good standing may include: • Outstanding violations, fees or fines. • Failing to obtain/maintain proper business licensing and/or approvals by the City, State, and County, as applicable. • Any other criteria, as may be determined by the City,may be considered. b. Prior to request for reimbursements and throughout Program term: Both the permitted/conforming business and the owner must be in good standing. To request reimbursement, the below will be required. • Executed lease agreement between the parties. • Valid Certificate of Use(CU). • Valid Miami Beach Business Tax Receipt (BTR). • Any other criteria, as may be determined by the City, may be considered. 2. Business Type 2—New-to-Market Art& Culture Business a. Commencing at time of application and throughout Program term: Property owner, prospective/new tenant business, and property must be in good standing with the City and Miami-Dade County. Examples of factors that may affect good standing include: • Outstanding violations,fees,or fines • Failing to obtain/maintain proper business licensing and/or approvals and by the City, State, and County, as applicable. • Any other criteria, as may be determined by the City, may be considered. 7 MIAMIBEACH Commercial Lease Subsidy Program b. Prior to request for reimbursements and throughout Program term: Prospective/new tenant and property owner must be in good standing. To request reimbursement, the below will be required. • Executed lease agreement between the parties. • Valid Certificate of Use(CU). • Valid Miami Beach Business Tax Receipt(BTR). • Any other criteria, as may be determined by the City, may be considered. C. Open-for-Business Timeframe.Approval of the application and Agreement by the City Commission must occur before the new business commences operations (opens to the public at the property). If a property participating in the Program does not require substantial tenant improvements, the prospective/new tenant must open for business and commence operations within an agreed-upon timeframe following the effective date of the Agreement. Requirement may be waived subject to City Manager's approval. D. Taxes, Fines,or other Fees. If a business is delinquent in paying its taxes,fines, or any other fees due to the City,Program funds may be withheld until the business is current and in good standing. If a business is more than one(1)year delinquent,the Agreement may be terminated,and the business may be disqualified from participating in the Program. E. Media Announcement. If requested by the City,the participant must agree to issue a press release announcing the new commercial location with reference to the"City of Miami Beach"by name. No less than forty-eight(48)hours prior to issuance of the press release,the business must provide a copy of the press release to the City and indicate the precise date and time for publishing. In support of the announcement, the City's Marketing and Communications Department may also issue a press release for which the participant must agree to provide a quote. F. Media Appearances. Where applicable, participants may be asked to provide a senior level executive to participate in engagements to assist with the City's Program recruitment efforts, e.g., a media interview, quote for a media story,or comparable engagement. VIII. Reimbursement Payments A. Participants may only request, and will only be considered for, the reimbursement of Qualified Expenses, as herein defined. Reimbursement payments are contingent upon prior satisfaction of each of the following: • City Commission approval of the application; • Executed Agreement • Annual appropriation of Program funding by the City Commission; and • Applicant's continuous compliance with the requirements and obligations of an executed Agreement. B. Qualified Expenses. Qualified Expenses for reimbursement are costs incurred on or after the expense eligibility date identified in the Agreement, documented as paid, and related to any of the following: 1. For lessee/tenant business: • Rent • Renter's insurance • Miami Beach BTR fees 2. For property owner/landlord: 8 MIAMIBEACH Commercial Lease Subsidy Program • Mortgage fees • Property insurance • Real estate taxes(including assessments) • Miami Beach BTR fees Reimbursement of the annual fees associated with payment of the City's business tax receipt(BTR) is not limited by or considered when calculating the cap on total award amounts. Only the Applicant of Record is eligible for reimbursement of the annual Miami Beach BTR fees throughout the three(3)year Program term. Verification of expense eligibility is subject to the sole and absolute discretion of the City. Expenses may be deemed ineligible for reimbursement if any of the following apply: • Property owner and tenant business have not executed a lease agreement; • Lease agreement is not valid and/or effective; • Subject property has not received a certificate of use(CU);or • Either the property owner or the tenant business has not obtained a valid and active Miami Beach BTR. C. Frequency of Reimbursement. Participants may submit to the City a request for reimbursement of Qualified Expenses no more than once quarterly. Reimbursement request schedule will be outlined in the Agreement. D. Maximum Award. City Commission. a. Program Term: $60,000 over three(3)years b. Annually: $20,000 over 12 months c. Monthly: Not to exceed $2,500 E. Installment Payment Amount. The amount of the installment reimbursement payment will vary among participants as it will be computed based on the amount of rent, mortgage,insurance,and/or real estate taxes, that is due for the subject property.The cumulative total amount of installment payments within a 12-month period shall not exceed$20,000 in the aggregate. Participants will be monitored periodically during the Program year to ensure compliance with the Agreement.Reimbursements of Qualified Expenses will only be issued after the participant has satisfied all commitments as set forth in the Agreement. The City shall designate staff, or a third party, to administer the Program and determine participant compliance. Any awards determined to be due to a participant and processed by said designated staff shall require written approval and authorization of the City. 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I i ° \ ; I. - �i1II� / , mom! a« } i \ \ , a e � I «_ . � k % _ ` f14 MIAMIBEACH Exhibit 3 DISBURSEMENT REQUEST FORM Commercial Lease Subsidy Program Property Address: Participant Name: Participant Representative/Contact: Phone: Email: Qualified Expense Description Name and Title: Signature: Date: Page 17 of 18 CITY OF MIAMI BEACH CERTIFICATE OF USE, ANNUAL FIRE FEE, AND BUSINESS TAX RECEIPT 1700 Convention Center Drive Miami Beach, Florida 33139-1819 TRADE NAME: SOUTH BEACH BREWING COMPANY LLC LICENSE NUMBER: BTR007716-10-2019 DBA: SOUTH BEACH BREWING CO Beginning: 10/01/2024 IN CARE OF: Lorenzo Borghese Expires: 09/30/2025 ADDRESS: 210 11Th St Parcel No: 0232340081210 Miami Beach, FL 33139 TRADE ADDRESS: 210 11Th St A penalty is imposed for failure to keep this Business Tax Receipt Code Business Type exhibited conspicuously at your place of business. City Police, Fire, 95016400 RESTAURANT/BARS Code, and Building Department personnel shall be authorized to enter all public areas and spaces of commercial business 95000700 ALCOHOL BEV. (NO LATER THAN 2AM) establishments operating in the city whenever such areas and spaces are open to the public. Restaurants/Bars:#Chairs 45 A Business Tax Receipt issued under Article 5 of Chapter 102 of the City Code does not waive or supersede other City laws,does not constitute City approval of a particular business activity and does not excuse the licensee from all other laws applicable to the licensee's business. This Receipt may be transferred: A.Within 30 days of a bonafide sale,otherwise a complete annual payment is due. B.To another location within the City if proper approvals and the Receipt are obtained prior to opening of the new location. Additional Information Restaurant and Bar with 45 seats inclusive of alcohol service. NOTE: Full restaurant menu/service shall remain available during business hours. Bar only operation is not permitted. Storage Locations FROM: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE PRESORTED MIAMI BEACH, FL 33139-1819 FIRST CLASS U.S. POSTAGE PAID MIAMI BEACH, FL PERMIT No 1525 SOUTH BEACH BREWING COMPANY LLC 1500 Bay Rd, Apt#920 MIAMI BEACH 33139-3225 Economic Development Department DATE: March 5, 2025 TO: Maria Hernandez, Assistant City Manager 40 FROM: Heather Shaw, Assistant Director .I0 Commercial Lease Subsidy (CLS) Program SUBJECT: Participant Agreement South Beach Brewing Company LLC _10 11 Street) Routing: X Maria Hernandez AG X Eric Carpenter X Rafael Granado For: Information Only X Review and approval X City Manager's Signature Other Comments: • The City Commission established the CLS Program to revitalize the ADCD by supporting arts and cultural businesses, reducing vacancies, and phasing out nonconforming businesses. • On February 3, 2025, Resolution 2025-33457 approved an application by Participant, South Beach Brewing Company, LLC, at 210 11 Street (BTR007716-10-2019). • The FY 2025 budget includes funding for the agreement's three-year term, with total reimbursements up to $60,000. • The form-approved agreement has been signed by the Participant and is submitted for City Manager review and execution. 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