C7K-Approve Lease Agreement Design Miami Show In The Preferred Parking LotT
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving a lease Agreement with Design Miami to hold the Design Miami Show in the
Preferred Parking Lot for specific dates in 2013, 2014, 2015, and 2016; as more set forth the
attached as Exhibit "A" to this resolution. ~~~~~~~------------------------------~
Maximize Miami Beach as a Destination Brand
Supporting Data Environmental Scan, etc.): The 2012 Customer Survey
indicated that most of Miami Beach believed that tourism adds to the quality of life in
Miami Beach. This figure was virtually the same in 2009 (69%), much higher in 2005 (82%). Residents
of Condo Corridor, Mid Beach and South Pointe were slightly more likely to say that tourism detracts from
the ualit of life in Miami Beach.
Issue:
16?
Design Miami is a marketplace for limited-edition design from the most reputable international design
galleries who present curated exhibitions of museum-quality lighting and objects d'art. They
attract the highest level of and public collectors of historical and contemporary design; much like Art
Basel Miami Beach does with modem and contemporary works of art.
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 ail 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 i 11 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. Design Miami has approached the City about renewing the but the current
Agreement does not have a renewal provision.
The rental rate for the Premises is $84,375 in each of the lease, including applicable sales tax, per
year. This rate was based on a "per flat rate $15.00, calculated by a turnover rate day, and
multiplied by the number of days the spaces could have been used, depending on Exhibit use during
the rental period. The first lease agreement between the City and Design Miami included a rental structure
that was phased in over three years before reaching the optimal turnover rate space of 1.5 times.
Since the optimal turnover rate per space of 1.5 times has already been reached, this new lease
agreement negotiated does not include a rental rate increase during the term of the lease. This is similar to
the lease agreement the City has with National Marine Manufacturers Association (NMMA) for the
Boat Show.
Source of
Funds:
OBPI
Financial Impact Summary:
Amount Account
222
Approved
AGENDA ITEM-----
OATE _.:....__-~:...=
City of Miami !.leach, 1700 Conve1tion Center Drive,. Miami Beach,. Florida 33139. www miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti H. Bower
DATE: 2
SUBJECT A RESOLUTION OF THE MAYOR AND CITY COMMISSION THE MIAMI BEACH,
HOLD THE DESIGN FLORIDA, APPROVING A AGREEMENT WITH DESIGN MIAMI
IN LOT,
6; MORE SPECIFICALLY
EXHIBIT "A" THIS RESOLUTION.
Adopt the
BACKGROUND
Resolution No. approving a
tor-.o::.mil'\or Design Miami Show in ~-'~""'~""'"'"""ri
Miami with sufficient to ~"',.,,.,~;,.,
rot.,. ..... ,.r~ Parking Lot was identified as
rwr"111"10"" fOf OpportunitieS for synergy D91W€~en
parking at new Hall Pennsylvania
alternative parking for the 220)
Miami is currently in
December 2.
The Neighborhoods/Community Committee met on July 2012 and recommended
Administration negotiate a new roomcru with Miami.
UU!.Av'<::U in
is a principal of the
of Art
223
Design Miami Parking Lease Agreement
City Commission Meeting
October 24, 2012
Page 2 of4
PROPOSED LEASE TERMS
The proposed Lease Agreement with Design Miami for use of the Preferred Parking Lot has the following
terms:
Four (4) years ending on December 31, 2016.
2013
Rental Rate:
October 21-December 2
December 3-December 8
December 9 -December 26
*2014 tentative dates are:
Move-in
Show Days
Move-out
October 20-December 1 Move-in
December 2-December 7 Show Days
December 8 -December 25 Move-out
*Lessee shall give written notice to Lessor on or before February 1, 2014 of any change
to the dates; otherwise, the tentative dates set forth above shall be presumed to be the
final dates and shall be binding on Lessee.
*2015 tentative dates are:
October 19 -November 30 Move-in
December 1-December 6 Show Days
December 7 -December 24 Move-out
**Lessee shall give written notice to Lessor on or before February 1, 2015 of any change
to the dates; otherwise, the tentative dates set forth above shall be presumed to be the
final dates and shall be binding on Lessee.
*2016 tentative dates are:
October -November Move-in
December -December Show Days
December -December Move-out
**Lessee shall give written notice to Lessor on or before February 1, 2016 of any change
to the dates; otherwise, the tentative dates set forth above shall be presumed to be the
final dates and shall be binding on Lessee.
The rental rate for the Premises is $84,375 in each year of the lease, including applicable sales tax, per
year. 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 first lease agreement between the City and Design Miami included a rental structure
that was phased in over three years before reaching the optimal turnover rate per space of 1.5 times. Since
the optimal turnover rate per space of 1.5 times has already been reached, this new lease agreement
negotiated does not include a rental rate increase during the term of the lease.
This is similar to the parking lease agreement the City has with National Marine Manufacturers Association
(NMMA) for the Boat Show. 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:
224
Design Miami Parking Lease Agreement
City Commission Meeting
October 24, 2012
Page 3 of4
Rental2013
Event parking rate of $22.5p/day (1.5% turnover) per day during Events
and 1/4 of lot used.
Rental Rate
#of Event Days p/space p/day #of spaces Total
15 $22.50 250 $ 84,375
Rental2014
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 $22.50 250 $ 84,375
Rental2015
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
p/space p/day #of spaces Total
15 $22.50 250 $ 84,375
Rental2016
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
p/space p/day #of spaces Total
15 $22.50 250 $ 84,375
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.
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.
Convention Center Expansion:
It is important to note that in light of the discussions regarding the Miami Beach Convention Center
expansion, the Agreement includes language providing for a six (6) months notice to Design Miami prior to
any construction/capital improvements to the Preferred Parking Lot and/or its vicinity. The City will use best
efforts to notice Design Miami with a one (1) year notice.
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)
225
Design Miami Parking Lease Agreement
City Commission Meeting
October 24, 2012
Page 4 of4
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 has also provided residents of the City with a fifteen percent (15%) discount on the purchase
of individual day passes.
CONCLUSION
The Administration recommends adopting the attached Resolution which approves substantive terms of a
Parking Lease Agreement between the City and Design Miami for use of the Preferred Parking Lot for the
Design Miami fair.
KGB/MAS
T:\AGENDA\2012\10-24-12\DM PLOT LEASE MEMO 2012.doc
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RESOLUTION TO BE SUBMITTED
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