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710-2025 RDA RESOLUTION NO. 710-2025 A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO.2 TO THE IEASE AGREEMENT BETWEEN THE RDA (LANDLORD) AND COLLINS 1560, LLC D/B/A LIME TREE CAFE (TENANT), FOR USE OF APPROXIMATELY 2,697 SQUARE FEET OF GROUND FLOOR RETAIL SPACE LOCATED AT 1560 COLLINS AVENUE, SUITES 1-2, TO EXTEND THE RENT ABATEMENT PERIOD TO THE EARLIER OF: (i) THE OPENING OF THE PREMISES OR (ii) AN ADDITIONAL EIGHT (8) MONTH PERIOD, FROM JUNE 6, 2025 THROUGH FEBRUARY 5, 2026, DUE TO PERMITTING AND CONSTRUCTION DELAYS; AND FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO FINALIZE AND EXECUTE AMENDMENT NO. 2. WHEREAS, on December 14, 2022, the Miami Beach Redevelopment Agency ("RDA" or "Landlord") and Collins 1560 LLC d/b/a Lime Tree Cafe ("TenanY'), entered into a Lease, for use of approximately 2,697 square feet of ground floor retail space located at 1560 Collins Avenue, Suites 1-2, for the operation of an upscale dining restaurant; and WHEREAS, the Lease term is for nine (9)years and 272 days, commencing on April 6, 2023, when Tenant took possession of the Premises, and expiring on January 3, 2033; and WHEREAS, under the Lease, Tenant received the following concessions: • for months 2-7 from Commencement Date (May 6, 2023 - November 5, 2023), the Mlnimum Rent and Operating Expenses were abated (Minimum Rent and Additional Rent Abatement Period); and . for months 8-18 from Commencement Date (November 6, 2023- October 5, 2024), the monthly Minimum Rent payment (at the time, $16,85625 plus applicable sales tax) was abated (Rent Abatement Period); however, during the Rent Abatement Period, Tenantwas still required to paythe monthly payment for Operating Expenses; and WHEREAS, on June 26, 2024, the Chairman and Members of the RDA adopted Resolution No. 690-2024, approving an extension of the Rent Abatement Period for an additional eight (8) months, from October 6, 2024 to June 5, 2025, during which time Minimum Rent was $17,361.94 plus applicable sales tax; and WHEREAS, simultaneously with the developmentof the Premises,Tenant is also developing a separate restaurant wncept, Open Vision (Cave 305), in adjacent Suites 3-4, which shares infrastructure and overlapping permitting timelines with the Llme Tree Cafe project, contributing to construction delays; and WHEREAS, on April 1, 2025, the Tenant submitted a formal request for an additional eight- month extension of the Rent Abatement Period, from June 6, 2025 lhrough February 5, 2026, or when Tenant opensfor business,whicheveroccurs first, citing ongoing permitting issues, particularly with the DERM review process for a shared grease trap; and WHEREAS, during the proposed extended Rent Abatement Period, the Tenant shall continue paying Operating Ezpenses, estimated to be$3,146.50 per month,while remaining exempt from payment of the Minimum Rent payment of $17,361.94 through September 30, 2025 and $17,882.80 through February 28, 2026, as well as any applicable Concession Fee and Percentage Rent; and W HEREAS,the proposed Amendment does not alter the Lease's expiration date or introduce new economic incentives, but rather aligns Lease milestones with construction realities and supports timely project completion; and WHEREAS, the approval, in substantial form, of Amendmeni No. 2, a draft copy of which is attached to the RDA Memorandum accompanying this Resolution as Exhibit B, would provide Tenant with the necessary temporary rent relief and support it needs to have a successful opening of Lime Tree Cafe, consisfent with the RDA's goals to activate retail space, support local business, and preserve long-term revenue potential. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), that the Chairperson and Members of the RDA hereby approve, in substantial form, Amendment No. 2 to the Lease Agreement between the RDA (Landlord) and Collins 1560 LLC d/b/a Lime Tree Cafe (Tenant), for use of approximately 2,697 square feet of ground floor retail space located at 1560 Collins Avenue, Suites 1-2, to extend the Rent Abatement Period to the earlier of: (i)the opening of the Premises or(ii)an additional eight (8) monih period, from June 6, 2025 through February 5, 2026, due to permitting and construction delays; and further authorize the Executive Director to finalize and execute Amendment No. 2. PASSED and ADOPTED this af day of �Nvlt 2025. ATTEST: Jl1P! 3 0 2025 �' �-�^ �_ ae . ranado, Secretary ^i B^^���,,, Steven Meiner, Chairperson � � �..... p � rO� REGIS BARBOU �' ?'* � `: 1 ; �IN(ORP ORAlE0.' . ', i.", �..y... ,_ :9," �.RCH 26:."--: APPROVED ASTO FORM & LANGUAGE �ION Irp Zf7oZS RedevelopmentAgency Date GenaraiCounsel E�rA� J�hl Redevelopmenl Agency Items (RDA) 1 MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Mem6ers of the City Commission FROM: Eric Carpenter, Executive Director DATE: June 25, 2025 TITLE: A RESOLUTION OF THE CHAIftPERSON AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), APPROVING. IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE LEASE AGREEMENT BETWEEN THE RDA (LANDLORD) AND COLLINS 1560, LLC DIBIA LIME TREE CAFE (TENANT), FOR USE OF APPROXIMATELY 2,697 SQUARE FEET OF GROUND FLOOR RETAIL SPACE LOCATED AT 1560 COLLINS AVENUE, SUITES i-2, TO EXTEND THE RENT ABATEMENT PERIOD TO THE EARLIER OF: (I) THE OPENING OF THE PREMISES OR (II) AN ADDITIONAL EIGHT (8) MONTH PERIOD, FROM JUNE 6, . 2025 THROUGH FEBRUARY 5, 2026, DUE TO PERMITTING AND CONSTRUCTION DELAYS; AND FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO FINALIZE AND EXECUTE AMENDMENT NO. 2. RECOMMENDATION The Adminisiretion recommends Ihat the Chairperson and Members of the Miami Beach Redevelopment Agency approve Amendment No. 2 lo the Lease Agreement with Collins 1560 LLC dlb/a Lime Tree Cafe, extending the Rent Abatement Period. BACKGROUND/HISTORY On December 14, 2022, ihe Miami Beach Redevelopment Agency ("Landlord") entered into a Lease Agreement wilh Collins 1560 LLC d/bla Lime Tree Cafe ("TenanP') for the lease of approximately 2,697 square feet of grountl floor retail space located at 1560 Collins Avenue, Suites 1-2, for Ihe operation of a fne dining restaurant known as Lime Tree Cafe under a term of nine(9)years and 272 days. The Tenant is also developing a separale reslaurant concept. Open Vision (Cave 305), in adjacent Suites 3-4. Due [o shared infrashucture and overlapping permitting timelines, both projects have experienced delays related to the complez constmction process, including the installation of a shared grease trap. The original Lease granted the Tenant an eleven(11)month aba[ement o/Minimum Rent. In April 2024, via Amendment No. t,the RDA approved an eight-month ez[ension of the Rent Aba�ement Period through June 5, 2025, to accommodate ongoing construction and permitting delays. On April 1, 2025, the Tenant requested an additional eight-month extension of �he abatement period, citing continued challenges in the construction and permitting process. The requested extension would run from June 6, 2025, through Febmary 5, 2026, and includes a proposal to continue paying Operating Expenses while deferring Minimum Rent, the Concession Fee, and any applicable Percentage Rent. 2351 ANALYSIS The Tenant is wrrently obligated to pay Minimum Rent of$17.361.94 per month upon conclusion of the rent abatement period, along with a Concession Fee and Percentage Rent. However, due to unresolved permitting issues, particularly with the DERM review process for the shared grease trep, the Tenant has not been able to complete conslruction and commence operations. In response, ihe Tenant has reques�ed an additional eight-month extension of the Rent Abatement Period or upon opening,which occurs first During ihis proposed eztension,the Tenant will continue to pay Operating Expenses, estimated at approzimately$3,146.50 per month, while remaining temporarily exempt from Minimum Rent and other rent obligations. The requested extension would not affect the ezpiration date of the Lease or modify its overall term. It is a time-limited adjustment aimed at supporting completion of the buildout and ensuring ihe successful launch of the Lime Tree Cafe. FISCAL IMPACT STATEMENT The fscal impact of the proposed Amendment No. 2 includes the de(erral of ihe TenanCs Minimum Rent, Concession Fee, and Percentage Rent obllgations during the requested eight-month extension. Based on the Lease's current rent schedule,this equates to a deferral of approximately $138.895.52 in Minimum Rent revenue in addition to the forgone collection of associaled Concession Fees and any Percentage Rent that would have been due if operations had commenced. Despite the temporary dete«al of this revenue, the Tenant will continue to pay monthly Operating Expenses ot appmzimately$3,146.50,totaling$25,172.00 over the eight-month eztension.These payments ensure that lhe Landlord continues to recover essential costs tied to maintaining the premises during Ihe abatement period. The proposed amendment does not increase the total lease term or provide additional economic incentives. Rather, it aligns the rent commencement timeline with realisiic consiruction miles�ones, ihereby preserving the Lease's long-term fnancial sWcture and enhancing the likelihood of full tenant occupancy and revenue generation in future lease years. Does this Ordinance reauire a Business Imoact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE)was puhlished on: See BIE at: htlps !/ �b hFl q I 'ty-h III 'lv-clerk/mee£na-notices! FINANCIAL INFORMATION CONCLUSION The Administration recommends that the Chairperson and Members of the Miami Beach Redevelopment Agency approve Amendment No. 2 to Ihe Lease Agreement with Collins 1560 LLC dlb/a Lime Tree Cafe, extending the Rent A6atement Period to the eadier of: (i)lhe opening of the Premises or(ii) an additional eight(8) monih period, from June 6, 2025 through February 2352 Q 2026, due to construction and pertnitting delays�, and further authorize the Executive Director to finalize and execute Amendment No. 2. App�icable Area Sou�h Beach Is this a "Residents Riqht to Know" item, Is this item related to a G.O. Bond pursuant to Citv Code Section 2-17? Proiect? No NO Was th's Aqenda Item initiallV requested bv a lobbvist which as defined in Cade Sec. 2-481 includes a principal enaaqed in lobbvinq'+ No If so, specify the name of lobbyist(s}and principal(s): Deoartment Facilities and Fleet Management Soonsorlsl Co-saonsods) Condensed Title Amendment 2 to Lease, Lime Tree Cafe - 1560 Collins Ave Add'I (8) Months Rent Ahatement. FF Previous Action (For Ciri Clerk Use Onlvl 2353 .1pril G. 2�13i Afr. Urric llo�n�'.n�;ucz, CS\t Dfrccrnr ot;Asscr A[anagcmrn� Facilitics and 1'leci Vlanagcment Depr. Cia' of�(iami I3each 1833 6a�Rnad,2`•� Ploo� \tlemi Itcach,Pl��nda 3i139 Re Reyuest for Gsccvslun af Renc C��mmcnce�nevt Date and Renc.Aba[crnent Period of che l.ense be�u'een the Ciic of Atinmi Ilexch nnd Collins LiGO, I J.0 tor rhe Pm�crq_Lncared ar " II' 1 5 �t� 1 d' Drac Ozzie: � r1s vou know,chis fimi rcp�csrncs Collins 156�I,LC(thN'7'cnanP��rith�cspca m thc l.casc bec��cen thc Tcnanc and che Cin' uf Mlami Hcach (chc "Cicd'J toc [hc pcoprcq• locatcd at 1560 Collins :Aamuc, Suircs 1 and 2 (the "P�ope�q'"), dared M1larch 23, 2023. Pleasc allow chis �orrespondencc �o sen�e as a rcquesc for Estension oF thc Arnt Commcnccmcnt D�ate and Rcnc 96a[emen� Pe�iod of the Izase Aet�ceeo ihe Cn}° of\1iaml [tcac6 and the'Cenant fnr[he Propem- ;�hc `Y aasc')- D se �ption f the Prooem. 9'he Propern' Is locamd on the south side ol 16'" Sttect betu-ec�i Collim and A�ashington Avenues, in [he GC, Goaernmenr lise, zuning dstnct. Ir is also loca�cd �richin thc C)cean Dnac/Cnllins Accnuc Local Hfsmnc Disrncr and nc� A1fami Rca�h Amhirecmral Distria fn the Nadonal Re},dscer of Hrsmric Disttictt. 61iam[ Uade Cou�tc idenuties ihe praperq- 6�� FoGo I�o.: 02-323d-019-1090. Pursuan[ m [he Dliami-0xde Counn' Pmpecro Appmiser,�he properq'is npproximatelt'3G7 fi00 square (cet nn{houses�a fire stun' acn¢mre. The wp four (4) lecels uf the sm�cmre house a pnrkinK garnge, while rhe ground Flour pruddes for commc�cial uscs. 'fhis rcqucst pcttnfns [o swres l and 2,thc Piupcm'. Reauest The'Tenan[is requectin�an eight(Sj mnnth c�rension nf time nf the u�mmencemrnt dacc and cen[ab�mment pe�od uf[he Lease, ur In the alternaei��e tt�rough thc timc of recci�'in� a Certificate uf Ose (CU) from the Cin• of Dfiami Reach, u-hichever is earlicr. 7'his request is as a direc� rrsuL uC incre�.i�ed construcnun cosa �and the delacs rela�ing w the Tenants cump�nioa lease bcm-ec� chc Ciq- and Oprn Visiun I.LC fur>uftcs 3 and 4. 7�he delays wich the permi[s Eur Open \'Lcion, 1LC, hacc had ripplc cffcc[s inro dic Tcnant's abilip� [u pmcced cspcdiriuusly �vich bo[h prujeta simulumcuuslv. Also,xince both prujects ace slmared within die same pmpern', there h�ve bcrn multiplc ins�anms o! mnFusing thc permits dunng ��uhmissloq resultin�. m e�runcous com�nena,which hace cesulted in pecmit failures,and dela}'s. 6clow please find the �;rneral permit timclinc tnr this projccc • December 27, 202i—BC2122855—renan� applicd fur mnstrr permit M c Rccicw q�des—Dcccmbcc 20�, Dlag,2024,Scprcmbcr 2U24,Januan 2025 o Pcrmic procese dclaccd pcnding 3a 6mc rc��ic�c, which pcccc�rcd prucccdfng wfrh � nnv rc�acws, and dcla�'cd subseyurnt permit suhnuc�iuns (plan� faileJ fu[F�Iwnbing, � hut pcecenred upluad (o�ocher discipGnes,mduding dca�ieal). c Holds rcicascd i�Januam LAW pq ]950 NW 53""STREET.•SURE 33]•MIAMI,fL�33166•305542-3445� MONIKA@MHELAWPA,COM 2354 '.Nc Ovic Damineuvz 1550 Collins LLC \piil G. '_035 r�,� z orz o :l�po�cals fr��m ,Atcchanical, s�ruaunl, trcq cicnricnl, nnd 6uilding di+ciphnc> in :Alnrch 2�25 c I�ailcci plumbinG—calling Fnr DIiRb1 redcw and Counn' POG ,. Pl�ns ��-rth Cave 305 confused u Ith diece permirs „ �anu2g 2025 - Outmach ro 6uilding Deparrmenc adcising dint DHR:�f appro��als mv�c previouslv tiled and uf reciewer cnnfusion Uenceen permits (bn�h sets of permi[s are for cest�ucaots az the same pmpertv, jusr differenr u�its. • August 15�20?A—EI.C2414984—applied fnr cummcrcial signs � o Issucd02/U�/35 • Peemlt u-ent through iwo cecles of�ericws (Scptembcr and October 2024). • The plans were approved dudng che thi�d cycte in eadr 2U25. VAhle thc Trnant v'us hopeful iu ha�e Cvice 305 (Ope�� A'Ision) openad by .1prll 1, 2U25, vlluuing foc rhem co dien Cmish the permining tor 15G0 I.LC (I.ime Trec), the delacs In Ca�� 3U5 hacc had a ripple etfea on this prolect and resuked on a deleccd stan wi[h thc permits. Se�'ettheless, �hr Tcnant cununued (ull tu�ce ��'ith theie permils, buc d�e mn�usion hencecn the prujects hace untocmnatel}�aJded m the delay in hacing these peemin issue in ocder m finatlze chc �rork at the Proper¢-. e\s a resuli, u�c are requcsting an addirional amendmcn[ and c�rension oi ihe cummencemenr date and rencabacement pcood tor rhe Propettc. Conclusioa "Ihe �eopuscd use is a�nsismnt wi�h thc permicred use,. in the disttia and che proposed cafc�vill corich thc ocighborhood. \Yliile vuur xssistance �hus Ea�, �cnth the permicting, h.�s been imGspe��sable, �ce nuw seek �our=upport Eur this etiteaslon request Should vm huce any yucsoons ur comments,please du ma hesirnm a� amtact mc. Sincercly, AIHF( L:1\\' P:1 �tunika I�I. ICnrin J950 NW 53""STPCCT.•SUITC 33] •MIAMI, FL�33166�305 5423445� MONINA@MHELAWPA.COM 2355