C4B-Ref- NCAC - New Lease Agreement Design Miami ShowMIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT
COMMISSION MEMORANDUM
Mayor Matti H. Bower and Members of the City Commission
Jorge M. Gonzalez, City Manager ~
May 9, 2012
REFERRAL TO THE NEIGHBORHOO /COMMUNITY AFFAIRS COMMITTEE-DISCUSSION
REGARDING WHETHER THE CITY SHOULD ENTER INTO A NEW LEASE AGREEMENT
WITH DESIGN MIAMI TO HOLD THE DECEMBER DESIGN MIAMI SHOW IN THE PREFERRED
PARKING LOT, FOR SPECIFIC DATES IN 2013,2014,2015,2016, AND 2017.
ADMINISTRATION RECOMMENDATION
Refer the item for discussion to the Neighborhood/Community Affairs Committee.
BACKGROUND
On May 12, 2010, the City Commission adopted Resolution No. 2010-27384 approving a Lease Agreement
between the City and Design Miami to hold the December Design Miami Show in the Preferred Parking Lot
(P-Lot) in 2010, 2011 and 2012. The P-Lot provides Design Miami with sufficient space to construct a
temporary exhibition structure to host the show. The Preferred Parking Lot was identified as the most
compatible space, as it was agreed by all parties that it provides for opportunities for synergy between
Design Miami and Art Basel Miami Beach. The parking at the new City Hall garage, the Pennsylvania
Avenue Garage and 1 ylh Street Garage provides alternative parking for the spaces (approximately 220)
displaced by Design Miami.
Design Miami is currently in the final year (third year) of their Lease Agreement with the City, which expires
December 31, 2012 after the 2012 show. Design Miami has approached the City about renewing the lease,
but the current Agreement does not have a renewal provision.
ABOUT DESIGN MIAMI
Design Miami is a marketplace for limited-edition design from the most reputable international design
galleries who present curated exhibitions of museum-quality furniture, lighting, and objects d'art. It attracts
the highest level of private and public collectors of historical and contemporary design, much like Art Basel
Miami Beach does with modern and contemporary works of art. Participating galleries deal mainly in
exceptional design objects from the advent of Modernism (circa 1900) to present day, with select galleries
specializing in 18th and 19th century antiques.
Design Miami produces two shows each year: Design Miami/Basel in June, and Design Miami in December.
The December show has been produced in the Design District since 2005, and the June show in Basel
since 2006. Craig Robins is a principal of the fairs, which are organized in partnership with MCH Swiss
Exh.ibition, the producers of Art Basel and Art Basel Miami Beach.
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Date 5""-9-12--
Design Miami Parking Lease Agreement Referral
May 9, 2012
Page 2 of 3
CURRENT LEASE TERMS
The current Lease Agreement with Design Miami for use of the Preferred Parking Lot has the following
terms:
Term:
Three (3~ years ending on December 31, 2012.
2010 dates:
2011 dates:
2012 tentative dates:
Rental Rate:
October 18 -November 29
November 30 -December 5
December 6 -December 23
October 17 -November 28
November 29 -December 4
December 5 -December 22
October 22 -December 3
December 4 -December 9
December 10-December 21
Move-in
Show Days
Move-out
Move-in
Show Days
Move-out
Move-in
Show Days
Move-out
The rental rate for the Premises is $49,500 in 2010; $61,875 in 2011; and $74,250 in 2012, including
applicable sales tax, per year. In an effort to encourage the move to Miami Beach, and assist in offsetting
initial costs associated with a move, this rate was based on a "per space" flat rate of $15.00, calculated by a
turnover rate per day, and multiplied by the number of days the spaces could have been used, depending
on Exhibit Hall use during the rental period. The City negotiated a rental structure with Design Miami that is
phased in over three years before reaching the optimal turnover rate per space of 1.5 times. This is similar
to the previous parking lease agreement the City had with National Marine Manufacturers Association
(NMMA) for the Boat Show where it was also phased in over several years. Use of additional space(s) must
be mutually agreed upon by both parties and rental rates for any agreed upon additional space(s) is
determined by the formula outlined below. The following is an itemized listing of the rental fees per year:
Rental2010
Event parking rate of $15 per day during Events and 1/4 of lot used
Rental Rate
# of Event Days p/space p/day #of spaces Total
15 $15.00 220 $ 49,500.00
Rental2011
Event parking rate of $18.75 (1.25% turnover) per day during Events and
1/4 of lot used.
# of Event Days Rental Rate #of spaces Total
p/space p/day
15 $18.75 220 $ 61,875.00
Rental2012
Event parking rate of $22.5p/day (1.5% turnover) per day during Events
and 1/4 of lot used.
# of Event Days
Rental Rate
#of spaces Total p/space p/day
15 $22.50 220 $ 74,250.00
At no time during the Term of the lease will Design Miami be permitted to use more than 300 parking spaces
in the Preferred Parking Lot, unless mutually agreed upon.
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Design Miami Parking Lease Agreement Referral
May 9, 2012
Page 3 of 3
Protection Clause:
The Lease includes a clause prohibiting the City from leasing the Preferred Parking Lot to third parties for
any furniture design show, for thirty (30) days immediately prior to, and the thirty (30) days after the Design
Miami dates.
Default and Termination:
The City may default Design Miami if any of the following occur:
a. If Design Miami abandons or vacates the Premises during any of the dates provided for its
use of the Premises hereunder, other than as consistent with moving in or out;
b. If Design Miami fails to timely pay any of the rental amounts, as set forth in this Agreement;
c. If Design Miami fails to discharge or bond off any lien filed on the Premises, within ten (1 0)
days of written notice from City to Design Miami; or
d. If Design Miami fails to perform in accordance with any of the other terms and conditions
herein contained and such default is not cured within ten (1 0) days after written notice.
Public Benefits:
Design Miami also provided residents of the City with a fifteen percent (15%) discount on the purchase of
individual day passes.
CONCLUSION
The Administration recommends referring the item for discussion to the Neighborhood/Community Affairs
Committee.
JMG/HMF/MAS
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