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Resolution 2025-33821 RESOLUTION NO. Z02533821 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE LEASE AGREEMENT DATED MAY 25, 2018 BETWEEN THE CITY(LANDLORD)AND THE COLONY THEATER CAFE, INC. D/6/A SEGAFREDO ZANETTI ESPRESSO (TENANT), FOR THE USE OF APPROXIMATELY 1,092 SQUARE FEET OF CITY-OWNED PROPERTY, LOCATED AT 1040 LINCOLN ROAD (DEMISED PREMISES), PLUS AN ADDITIONAL STORAGEIDUMPSTER AREA; SAID AMENDMENT APPROVING THE SECOND AND FINAL THREE (3) YEAR RENEWAL TERM OF THE LEASE, COMMENCING RETROACTIVELY ON MARCH 1, 2024 AND EXPIRING ON FEBRUARY 28, 2027, AND MODIFYING THE FINANCIAL TERMS DURING SAID RENEWAL TERM IN ORDER TO ADDRESS THE SUSTAINED REDUCTION IN REVENUES WHICH TENANT HAS EXPERIENCED SINCE THE ADVENT OF THE COVID-19 PANDEMIC; AND FURTHER AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THE AMENDMENT. WHEREAS, the City of Miami Beach holds fee simple ownership of the Colony Theatre Condominium (the "Building"), located at 1040 Lincoln Road, which contains approximately 820 square feet of ground-floor restaurant space ("Restaurant Space" or"Unit 1"), 272 square feet of concession area space ("Concession Area" or"Unit 2"), and approximately 12,113 square feet of theater space (the "Theater Space" or"Unit 3"); and WHEREAS, the City also owns a surtace parking lot, in close proximity to the Building, having approximately 348 square feet(the "DumpstedStorage Area"), having a street address of 1100 Lincoln Road; and WHEREAS, on May 25, 2018, pursuant to Resolution No. 2017-29834, the City executed a new Lease Agreement("Lease")with the Colony Theater Cafe, Inc., a Florida corporatioq d/b/a Segafredo Zanetti Espresso ("TenanY'), for an initial term of three (3) years commencing retroactively on March 1, 2018 and ending February 28, 2021, with two (2) additional three (3) year renewal terms for use of the Restaurant Space and Concession Area (collectively, the "Demised Premises") and the DumpstedStorage Area; and WHEREAS, the Tenant provides the concession services for the Colony Theatre pertormances from the Concession Area; and WHEREAS, the initial Base Rent for use of the Demised Premises was $200.55 per square foot (PSF) ($18,250.00 per month), with a 2% annual increase throughout the term; and the use of the Dumpster/Storage Area was $637.50 per month; plus insurance, real estate taxes and utility costs; and WHEREAS, in addition to the Base Rent payment, the Tenant was subject to an annual percentage of gross receipts (PG) payment equal to 7% of total gross receipts for the Lease Year less than the total amount of Base Rent paid for the given Lease Year; and WHEREAS, prior to expiration of the initial term, the Tenant expressed an interest to exercise the first renewal term for a period of three (3) years, with modifcations to the financial terms; and WHEREAS, Tenant argued that Lincoln Road had been in a downward trend since 2018 and that the COVID-19 pandemic had exponentially impacted fool-traffic and sales, as evidenced by the increased vacancies along Lincoln Road; and WHEREAS, on July 28, 2021, the Mayor and City Commission adopted Resolution No. 2021-31800, approving Amendment No. 1 to the Lease; said amendment approving the first renewal term of the Lease and including the following modifications to the financial terms of the Lease for the period from January 1, 2021 through February 28, 2024: • Abatement of TenanPs obligation to pay Base Rent, insurance, real estate taxes, use fee for the Dumpster/Storage Area, and the annual PG payment; and replacing said obligations with a monthly PG payment equal to eight percent (8%) of the to[al monthly gross receipts; and WHEREAS, as the expiration of the first renewal term approached, City staff engaged with the Tenant to discuss terms for a second renewal term, and to avoid business disruption while negotiations continued, and the City and Tenant mutually agreed to a month-to-month lease extension, effective March 1, 2024, through July 31, 2024, as documented in a Letter Agreement dated January 17, 2024; and WHEREAS, although an agreement was not reached before the expiration of the month- to-month extension, the parties continued to discuss the terms for the third renewal term, and following notifcation from Tenant, dated April 15, 2025, the parties agreed to modify the flnancial terms of the Lease for the second renewal term, commencing retroactively on March 1, 2024 and expiring on February 28, 2027 as follows: • Modification of Financial Terms: Abatement of TenanYs obligation to pay Base Rent, insurance, real estate taxes, use fee for the DumpstedStorage Area, and the annual PG payment and replacing said obligations with a PG payment equal to: Eight percent (8°/o) of gross receipts, retroactively applied from March 1, 2024, through July 31, 2025; and Six percent (6%) of gross receipts during years 23, from August 1, 2025 through February 28, 2027; and • Termination for Convenience: Mutual termination for convenience right upon sixty(60) days notice to the other party; and WHEREAS, based upon the proposed modified terms, the City will not receive fxed Base Rent, operating expenses, or real esta[e taxes forthe Demised Premises; however, the proposed terms will maintain a percentage-based rent model, aligning both parties' interests by directlytying the City's income to actual business pertormance, which structure encourages partnership and reduces risk of tenant hardship during economic downtums, while allowing the City to share in business growth; and WHEREAS, Tenant has historically provided a dependable revenue stream and TenanYs presence strengthens activation along Lincoln Road, supports the cultural mission of the Colony Theatre, and enhances the area's appeat for residents and visitors; and WHEREAS, based upon the foregoing, including the City's right to terminate for convenience if the market changes, the City Manager recommends that the Mayor and City Commission approve, in substantial form, Amendment No. 2 to the Lease, a draft copy of which is attached to the City Commission Memorandum accompanying this Resolution as Exhibit "B"; said Amendment approving the second and final renewal term based upon the proposed modified financial tertns. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve, in substantial form, Amendment No. 2 to the Lease Agreement dated May 25, 2018 between the City (Landlord) and the Colony Theater Cafe, Inc. d/b/a Segafredo Zanetti Espresso (Tenant), for the use of approximately 1,092 square feet of City- owned property, located at 1040 Lincoln Road (Demised Premises), plus an additional storage/dumpster area; said Amendment approving the second and final three (3) year renewal term of the Lease, commencing reUoactively on March 1, 2024 and expiring on February 28, 2027, and modifying the fnancial terms during said renewal term in orderto address the sustained reduction in revenues which Tenant has experienced since the advent of the COVID-19 pandemic, and further, authorize the Clty Manager to fnalize and execute the Amendment. PASSED and ADOPTED THIS�day of �4`�✓ 2025. � ATTEST: :��i � � C07�; �G�� �_ Rafael E. Grenado, City Clerk Steven Meiner, Mayor =M;i a �P.\ E;� '-�'�.'�3yyy.�� ? £y '.INi0APE0AAiiD: . t i�, A ;ic'' .4R..�W.��a:� . _ � �.CN 26;.r' APPROVED ASTO FORM & LANGUAGE ,B�FOR EXECUTION � %l<�_ 11, 3 aa� CityAMorney Q(,.: Date �l�l Resolutions - C7 N MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenler, City Manager DATE: July 23, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 2 TO THE LEASE AGREEMENT DATED MAY 25, 2018 BETWEEN THE CITY (LANDLORD) AND THE COLONY THEATER CAFE, INC. D/B/A SEGAFREDO ZANETTI ESPRESSO (TENANT), FOR THE USE OF APPROXIMATELY 1,092 SQUARE FEET OF CITY-OWNED PROPERTY, IOCATED AT 7040 LINCOLN ROAD (DEMISED PREMISES), PLUS AN ADDITIONAL STORAGE/DUMPSTER AREA; SAID AMENDMENT APPROVING THE SECOND AND FINAL THREE (3) YEAR RENEWAL TERM OF THE LEASE, COMMENCING RETROACTIVELY ON MARCH 1, 2024 AND EXPIRING ON FEBRUARY 28, 2027, AND MODIFYING THE FINANCIAL TERMS DURING SAID RENEWAL TERM IN ORDER TO ADDRESS THE SUSTAINED REDUCTION IN REVENUES WHICH TENANT HAS EXPERIENCED SINCE THE ADVENT OF THE COVID-19 PANDEMIC; AND FURTHER AUTHORIZING THE CITY MANAGER TO FINALIZE AND EXECUTE THEAMENDMENT. RECOMMENDATION The Administretion recommends that the Mayor and Ciry Commission adopt the ResoWtion approving Amendment No. 2 lo the Lease Agreement with Colony Theater Cafe, Inc. d/b/a Segafredo Zanetti Espressq for continued use of approximately 1,092 square feet of City-owned property al 1040 Lincoln Road, plus additional storage and dumpster space. BACKGROUNDIHISTORY The City of Miami Beach holds fee simple ownership of the Colony Theatre Condominium, located at 1040 Lincoln Road. This property consists of approzimately 820 square feet of ground-floor restaurant space ('Restaurant Space" or"Unil 1")and 272 square feet of concession and srorage afea ("ConcessiOn Area" Or "Unit 2"), tolaling roughly 1,092 square feet (collectively, the "Demised"). Complementing this asset, the City also owns a nearby surface parking lot at 1100 Lincoln Road, which includes a 348 square foot area allocated for storege and dumpster use (the "DumpsledStorage Area"). Bolh the Demised Premises and the DumpsledStorage Area fall within the scope of the Lease Agreement. On May 25, 2018, pursuant to Resolution No. 2017-29634, the City executed a new Lease Agreement ("Lease") wilh the Colony Theater Cafe, Inc., a Florida Corporation d/bla Segafredo Zanetti Expresso ("Tenant"). The Lease included an initial term of three years commencing on March 1, 2018 and expiring on February 28, 2021 and two (2) three year renewal options. The first renewal (March t, 2021 to February 28, 2024) was exercised and fnalized by Amendmenl No. 1 pursuant ro Resolution No. 2021-81800, which shifted rent to a percenfage-of-gross- receipts model and aba[ed certain operating expenses and real estale taxes in response to the significant and sustained reduction in tenant revenues resulting from the COVID-19 pandemic. As the first renewal term neared expiration, bolh parties soughl [o build on their longstanding relationship and began negotiations for a second renewal. To ensure uninterrupted operalions 522 of 1791 while negotiations continued, the City and Tenant agreed to a month-to-month lease extension from March 1, 2024 through July 31, 2024, as set forth in a Letter Agreement dated January 17, 2024. During the extension period, [he City and Tenant participated in several rounds of diswssions and proposal exchanges regarding the terms of a further renewal. Although a fnal amendment was nol execuled before the expiration of the month-to-month extension, the Tenant formally notified the City of its intention to continue ils tenancy and ezercise Ihe second renewal option (see Exhibit"A°). The proposed Second Amendment to ihe Lease Agreement reflects this mutual intent and incorporates updated terms to address current economic conditions, as described below. Key terms of Amendment No. 2 include: � Premises and Parking Lot Use: The Lease covers wntinued Tenant use and operation of the restaurant,concession, and srorage spaces at 1040 Lincoln Road, as well as use of the DumpstedSrorage Area and assodated parking lot at 1100 Lincoln Road. Term: Second and final three (3) year renewal term, commencing retroactively on March 1, 2024 and expiring February 28, 2027. � Financial Terms: o (February 28, 2024—July 31, 2025): Rent equal�o eighl percent (8°/)of gross receipts, with all prior fxed base rent, insurance, real estate taxes, and DumpstedS[orage Area fees abated. o (August 1, 2025 — February 28, 2027): Rent equal to six percent (6°/)of gross receipts. o No separate payments due to the City for insurance, real estate taxes, or DumpstedStorege Area during the Second renewal term. � Reporting: Tenant continues to provide annual audited statements oi gross receipts, as defined in lhe Lease, to assure transparency in rent calculations. � Security: TenanPs existing Irrevocable Letter of Credit in the amount of$50,187.51 will remain in place as security for pertormance. � Termination for Convenience: Either party may terminate the Lease without cause upon sixty (60) days' written nolice to the other. ANALYSIS The proposed Second Amendment supports ihe City's goal of maintaining an active, long-term tenant at this important municipal property, while responding to evolving economic conditions. By moving to a percentage of gross receipts rent structure with an eight percent (8%a) in year one and six percent(6%)for most of years lwo and all of year three,the Clty's rental income is directly aligned with the caf'e's actual business performance. This arrangement provides needed relief to the Tenant in light of recenl revenue challenges, while annual audited statements maintain transparency. In addition to these fnancial terms, [he mutual sixty-day termination provision adds important flexibility for both parties should market conditions change. With ihe Letter of Credit remaining in place, the Ciry's financial interests wntinue to be protected. Collectively, these terms help ensure 523 of 1791 continued activation of Lincoln Road and support the City's cultural and fiscal objectives. FISCAL IMPACT STATEMENT The Second Amendment ensures Ihe City does not incur fnancial losses, as rental income remains directly tied to the cafe's actual sales, and there is no obligation for the City to subsidize the tenant. Importantly, the Tenant remains fully responsible for all ongoing charges, including utilities, maintenance, and any other cosls of occupancy. The existing requirement for an annual auditetl statement of gross receipts strengthens rent cnmpliance, while the existing Lerier of Credit continues to secure City interests. This slructure maintains a dependable revenue stream for Ihe City while limiting financial exposure. Does this Ordinance reauire a Business Im�act Estimate7 (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: httns://www.miamibeachfLqovlcitv-halllcitv-clerk/meetinq-noticesl FINANCIAL INFORMATION CONCLUSION The Administration recommends lhal lhe Mayor and City Commission adopt the Resolution approving Amendment No. 2 to the Lease Agreement with Colony Theater Cafe, Inc. d/bla Segafredo Zanetti Espresso, for continued use of approximately 1,092 square feet of City-owned property at 1040 Lincoln Roatl, plus additional storage and dumpster space. This Amendment wifl (i) approve the second and final ihree-year renewal term of the Lease, retroactive to March t, 2024 and expiring February 28, 2027; (ii)update the(nanciat terms during the renewal term, with ren� set at eight percent (8%) of gross receipts in the first year and six percent (6%) for most of year two (2)and all of year three(3); (iii)include a mutual sizty-day termination right; and further, authorizing the City Manager to finalize and execute the Amendment. Anplicable Area South Beach Is this a "Residents Riaht to Know" item. Is this item related to a G.O. Bond pursuanl to CiN Code Section 2•174 Proiect? No No Was this Aqenda Item initiallv reauested bv a lobbvist which, as defined in Code Sec. 2081 includes a urincioal enqaqed in lobbvina7 No If so, specify the name of lobbyist(s) and principal(s): Oeoartment Facilities and Fleet Management 524 of 1791 Saonsor(sl Co-soonsorfsl Condensed Title Amendment 2 wl Colony Theater Ca(e (aka Segafredo), 1040 Lincoln Road. Ff Previous Action IFor Citv Clerk Use Onlvl 525 of 1791 COLONY THEATER CAFE, INC. grazianoGgraspagroup.com April 15,2025 V1A E-MAIL CITY OF�11AMI BEACH RE: LHASEAGREEMENT BHTWEEN C1TY OF MIAMI BHACH, AS LANDLOKD, AND COLONY THEATER CAFE, INC D/B/A SEGAFREDO ZANETTI ESPRESSO, AS TENANT {the "Leaze"), FOR L2ASED PREMISF.S M THE COLONY THEAI'ER CONDOMINIUM, IN LINCOLN ROAD, AS MORE PARTICULARLY SET FORTH IN THE LEASE. Deaz Sir/Madam: 1n connection with the abovc referenced Lesce, COLONY THF.ATER CAFE, 1NC, the tenant,is interested in exercising its last �xtension option,that is,for the period imm August l,2024, through dul y 31.2027(the"L•as[Option Period")under the Lease but only under the following tenns: 1. During 1he entire Last Op[ion Periuci (in lieu of Base Rent, i'enanPs Proportiunate Shaze of pperating Expenses, Property Ta�c Payment, Insurance costs for the building as set forth in Section 3.2 of the l.ease, the Use Fee(Dumpster/Storage Area) as set forth in Section 32 of the Lcase, and the Percentage rent as set forth in the Lease),"Cenant would pay monthly a rotal of eight perce�t(8%) from the period ofAugust 1,2024 ro July 31,2025 and six percent(6%)from August I,2025 ro July 31. 2027 of Tenanf s monihty"�osc mceipt.s",as defined in the Lease,plus sales tar due thereon. Let me know if'you have any questions ur comments. Sincercly yout-�, COLONY "CHEATER CAFE, INC. G azian Sbroggio,Vice P ident 526 of 1791 EXHIBIT "B" AMENDMENT NO. 2 TO LEASE BETWEEN THE CITY OF MIAMI BEACH AND COLONY THEATER CAFE, INC. D/BIA SEGAFREDO ZANETTI ESPRESSO This Amendment No. 2 ("Amendmenf') to Lease Agreement, dated May 25, 2018 ("Lease"), by and between Ihe CITY OF MIAMI BEACH, a municipality existing under the laws of the Slate of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139("City" or"Landlord"), and COLONY THEATER CAFE, INC., a Florida wrporation, d/h/a Segafretlo Zanetti Espresso, having its principal place of business at 1040 Lincoln Road, Miami Beach, FL 33139 ("TenanC), is en[ered into this _day of , 2025: RECITALS WHEREAS, pursuant to Resolution No. 2017-29834, the City and Tenant executed the Lease on May 25, 2018; and WHEREAS, ihe initial term of said Lease was fa Mree (3) years, commencing March 1, 2018 and ending February 28, 2021, with lwo (2) options ro renew for three (3) years each; and WHEREAS, the initial term ezpired on February 28, 2021; and WHEREAS, on July 28, 202�.Me Mayor and Ciry Commission adop[ed Resolution No. 2021-31800, approving Amendment No. 1 to the Lease; said amendment approving the first renewal term of the Lease, ending on February 28, 2024, and including the following modifications to fhe fnancial terms of the Lease for the period from January 1, 2021 through February 28, 2024: Abatement of Tenant's obligation to pay Base Rent, insurance, real estate taxes, use fee for the DumpstedS[orage Area, and the annual percentage of gross receipts (PG) payment; and replacing said obligations wilh a monihly PG payment equal to eigh[ percent (8%) of tbe total monthly gmss receipts, which Amendment No. 1 was executed by the parties on September 13, 2021; and WHEREAS, Tenant has now requested, and the parties desire to enter inro, Amendment No. 2 to the Lease ("AmendmenC'); said Amendment approving the second antl Final three (3) year renewal term, under the following modified fnancial terms: • Modi£cation of Financial Terms for Secontl Renewal Term: Abatement of Tenant's obligation to pay 8ase Rent, insurance, real estate laxes, use fee for the Dumps[edStorage Area, and the annual PG payment and replacing said o6ligations with a PG payment equal to: Eight percent(8%) of gross receipts, retroactively applied from March 1, 2024, through July i 527 of 1791 31, 2025; and Six percent (6°/) of gross receipts from August 1, 2025 through February 28, 2027; and • Termination for Comenience: Mutual lermination for convenience right upon sizty (60) days notice to the o[her party, as more particularly described herein; and WHEREAS, on July 23, 2025,the Mayor and City Commission adopted Resolution No. ,approving, in substantial form,Amendment No. 2 to the Lease to effectuate these terms; and WHEREAS, the City and Tenant wish to clai�fy that the DumpstedStorage Area is depicted in Exhibit 2 to the Lease. NOW, THEREFORE, in consideretion of the mutual promises and conditions containetl herein, and other good and vaivable considerafion, the sufficiency of which is hereby acknowledged, the City and Tenant agree to amend the Lease as follows: t. ABOVE RECITALS. The above recitals are We and correci and are incorporeted as part of this Amendment. 2. RENEWAL TERM. The Lease is hereby amended to provide for a second and final renewal term commencing retroactively on March 1, 2024 antl expiring on February 28, 2027. 3. INDEMNIFICATION PROVISIONS SURVIVE EXPIRATION OR TERMINATION OF LEASE. The indemnification provisions contained in Sections 14.1, 19.1.1, 20, 21, 33, and 38 shall survive the expiretion or termination of Ihis Lease. 4. MODIFICATIONS. Nolwithstanding any provision to ihe contrary in [he Lease or any prior amendment, the following modified financial terms will apply during the second renewal term: (a) During fhe period bom March 1, 2024 through February 28, 2027 {"Rent Relief Period"), the following Base Rent and Additional Rent payments shall be abated: (1) Base Rent, as defined in Section 3.1; (2) Property Tax Payment, as defned in Section 32.12; (3) Insurance costs for the building, as defned in Section 32.1.3; and (4) Use Fee for DumpstedStorage Area in subsection 3.22. (b) Effective as of March 1, 2024, Section 3.4 of the Lease shall be deleled in its entirety and replaced with the following: , 528 of 1791 3_4 Percentaae of Gross 3.4.1 Durinv the Rent Relief Period Tenant shall oav the Landlord the followina monthlv percentaoe of qross receiots (PG) oavment due bv the 15'"dav of the followino month: . For the oeriod from March 1. 2024 throuah Julv 31. 2025 Tenant will oa,y rent eaual to eiaht percent B%1 of oross receiots calculated monthlv. . For the period from Auaust 1 2025 throuqh Febmary 28 2027 Tenant will oav rent eaual to six oercent B%1 of qross receiots. calculated monthlv. 3.42 The term "aross receipts"is understood to mean all income received bv the Tenant from all sales made bv Tenant of food. beveraqes aod merchandise in on or from the Demised Premises inclusive of the receiots qenerated bv the sidewalk caf� (less retums or refunds) excludino amounts of anv Federal. State or CiN sales tax aovernmentaf imoosition assessment. charae or exoense of anv kind, collected bv the Tenant from customers and reouired bv law to be remitted lo the taxina or other qovernmental authoriN. Notwithstandina ihe foreaoina "aross receipts" shall also nol include anv of the fo!lowina: (a) gr�uities to emnlovees paid bv TenanYs oatrons or cuslomers (even if included in the check to ihe oatron or customerY {b) food and bevereaes served lo emo�ovees of Tenant at no cost� (c) footl and beveraoes orovided bv wav of oromotions or oromo check: or (d) a walkouf(i.e. a meal served but not oaid forl 3.4.3 On or before the fikeenth (15�1 of each month dunna the initial term or anv aooroved renewal term. Tenant shall preoare and deliver to Landlord at the olace where rent is oavatrle a copv of TenanPs Sales antl Use Tax Retum {Form DR-i5CS or DR15-EZ)fled with the Florida Deoartment of Revenue reportinq Gross Sales made from the Demised Premises durina the orecedina calendar auarter which shall be broken down bv month or such other documentation aooroved bv Landbrd. (c) ENective as of March 1, 2024. Subsection 23 of the Lease shall be deleted in its entirety antl replaced with ihe following; 2.3 Parties' Mutual Termination ftiqfit. The City throuqh its Citv Manaaer and Tenant throuah ils authorizetl reoresenfative herebv reserve the riaht to terminale this Lease without cause and for their convenience. uoon orovidina the other partv wilh a minimum of sixtv (60) days prior written notice f'Effective Date of Termination"1. In fhe event of termination bv the CiN pursuant to this Subsection 2.3 Tenant herein acknowledaes and aqrees Ihat it shall not have am claim demand or cause of action of whatsoever kind of nature aaainst the CiN its aaents servan[s and 529 of 1791 emolovees includina but not limited to claims for anv start-uo costs and/or interference in its concession o�emtions. Additionallv in no event shall the CitY be liable to Tenant for anv indirect incidental soecial lost orofts or conseauential damaaes. In the event of termination under this Subsection 2.3 bv the CiN or Tenant the �artv terminatinq the Lease shall be released from anv further obliaations under the Lease from the Effective Date of Termination forward exce�t as to those orovisions or obliaations which accrued Drior to lhe Effective Date of 7ercnination or which are intended io survive expiration or termination of the Lease induding without limitation the indemnifcation �rovisions contained in Sections 74.1 19.1.1 20 21 33, and 38. (d� Effective as of the dale the parties execute this Amendment, the following new Sections 40—43 are hereby included as part of ihe Lease: 40. Tenant's Comoliance with Anti-Human Traffickina Laws. Tenant agrees to comply w�th Sedion 787.p6, Florida Statutes, as may be amended from time to time, and has executed the Certification of Compliance with Anti-Human Traffcking Laws, as required by Section 787.06(13), Flonda StaWtes, a copy of which is attached hereto as Ezhibit 3. 41. Prohibition on ConVactina with a Business Enaaaina in a Bovcott. Tenant warrants and represents tha[ it is not currently engaged in, and will not engage in, a boycott, as defined in Section 2375 of the City Code. In accordance with Section 2-375.1(2)(a) of the City Code, Tenant hereby certifies that Tenant is not currently engaged in, and agrees for the duration of the tertn ot the Lease to not engage in, a boycott of Israel. 42. Prohibition Aaainst Contractin9 with Foreiqn Countries of Concern when an Individual's Persona!Idenlilv'rrw lnformation mav be Accessed. Tenant hereby agrees to comply with Section 287.136, Florida Statutes, as may be amended from time Io time, whicb states that as of January 1, 2024, a governmental entiry may not accept a bid on, a proposal for, or a reply to, or enter into, a contract with an entity which would grantthe en6ry access to an individual's personal identifying information (PII), unless lhe entity provides the govemmental entity with an affdavit signed by an officer or representative of ihe entity under penalty of perjury attesting Ihat the entity does not meet any of the criteria in Paragraphs 2(a)-(c)of Section 287.138, Florida Statutes: (a)the entity is ownetl by a govemment of a foreign country of concern; (b)Ihe govemment of a foreign counlry of concem has a wntrolling interest in the entity; or (c) the entity is organizetl under the laws of or has its principal place of business in a foreign country of concern (each a 'Prohibited Entity"). A foreign country of concem is defned in Section 287.138 (1)(c), Fbrida SlaWtes, as may be amended from time to time, as the People's Republic of China, the Russian Federation, ihe Islamic Republic of Iran, the Democretic People's Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolas Maduro, or the Syrian Arab Republic, including any agency of or any other entity of significant control of such foreign coun[ry of wncem. Additionally, beginning July 1, 2025, a govemmental entity may nol extend or renew a coniract with a Prohibited Entity. Tenant warrants antl represents that it does not fall within [he definition of a Prohibited Entity, and as such, has caused an authorized representative of Tenant to execute the "Prohibitlon Against 4 530 of 1791 Contracting with Entities of Foreign Coun[ries of Concem AffidaviP', incorporated herein by reference and attached hereto as Exhibit 4. 43. Prohibition on Contractina with an Individual or EntiN Which Has Performetl Services for Comoensation to a Candidate for Citv Elected Offce. Tenant warrants and represents that, within two(2)years prior to the date in which Tenant executes this Amendment, Tessee has not received compensation for services performed for a candidate for City elected offce, as wntemplated by the prohibitions and exceptions of Section 2-379 of the Ciry Code. For the avoidance of doubt, the restrictions on contracting witb the City pursuant to Section 2•379 of lhe Ciry Code shall not apply lo the following: a. Any individual or entiry that provides goods to a candidate for office. b. 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 indudes, without limita�ioq banks, telephone or intemet service providers, printing companies, event venues, restaurants, caterers, hansportation providers, and ofice supply vendors. c. Any individual or entfty which performs licensed professional services (including for example, legal or accounting services. 5. RATIFICATION. Except as amended fierein, all other tertns and conditions of the Lease shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Lease, ffie provisions of this Amentlment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. 531 of 1791 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their appropriate offcials, as of the date f rst entered above. FOR LANDLORD: CITY OF MIAMI BEACH ATTEST: By: Rafael E. Granado, City Clerk Eric T. Carpenter, City Manager Date FOR TENANT: COLONY THEATER CAFE, INC. ATTEST: BY� President Secretary Print Name Print Name Date r, 532 of 1791 Exhibil3 Anti-Human Tre�cking A�davit In accordance with Section 787,06 (13), Fforida Statutes, the undersigned, on behatf of Tenant hereby attests under penalty of peryury that Tenant does not use coercion for labor or services as defined in Sec[ion 787.06, Florida Statutes, entitled "Human Trafficking". I understand that I am swearing or affvming under oath to the lruthfulness of the claims matle in this affidavi� and that the punishment for knowingly making a false s�afement includes fines and/or imprisonment. The undersigned is authorized to execute this affdavit on behalf of Tenant. Tenant: Colony Theater, Inc., a Florida corporetion NamelTitle: (Address) State of Counry of The foregoing instrument was acknowledged before me by means of O physical presence or ❑ online notarization, this _ tlay of , 202_ by , as of , a corporation, known to me to be the person described herein, or who produced as idenC�fication, and who didldid not take an oath. NOTARY PUBLIC: (Signature) (Print Name) My commission expires: � 533 of ll91 EXHIBIT 4 Prohibition Agai�st Contracting With Foreign Countries Of Concern Affidavit In accordance with Section 287.138. Florida Statutes, incorporated herein by reference, Ihe undersigned, on behalf of Tenant, hereby attests under penalty of perjury that 7enant dces not meet any of Ihe following criteria in Paragraphs 2(a)-(c)of Section 287.138, Florida StaWtes� (a) Tenant is owned by a govemment of a foreign country of concem; (b) the govemmeM of a foreiqn couniry of concem has a controlling in�erest in Tenant;or(c)Tenant is organized under the laws o�or has its principal place of business in a foreign country o(concem. I understand that I am swearing or affirming under oath, under penalties of perjury, to the trulhfulness of the claims made in this affdavit and that the punishment for knowingly making a false statement includes fines and/or imprisonment. The undersigned is authurized to execute this affidavit on behalf oi Tenant. Tenant Colnny Theater, Inc., a Florida corporation Name(fitle: (Address) State of County of The foregoing instrument was acknowledged before me by means of O physical presence or ❑ online notarizatlon, this _ tlay of , 202_ by _, as of , a corporation, known to me to be ihe person descnbed hereiq or who produced as identification, and who did/ditl not take an oath. NOTARY PUBLIC: (Signature) (Print Name) My commission expires: R 534 of 1791