20130605 SM3MIAMI BEACH
City Commission Meeting
SUPPLEMENTAL MATERIAL 3
City Han, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
June 5, 2013
Mayor Matti Herrera Bower
Vice-Mayor Jonah Wolfson
Commissioner Jorge R. Exposito
Commissioner Michael G6ngora
Commissioner Jerry Libbin
Commissioner Edward L. Tobin
Commissioner Deede Weithorn
City Manager Jimmy L. Morales
City Attorney Jose Smith
City Clerk Rafael E. Granado
Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
SUPPLEMENTAL AGENDA
C7-Resolutions
C7 J A Resolution Of The Mayor And The City Commission Of The City Of Miami Beach, Florida,
Approving Month-To-Month Extensions Of The Agreements Between The City And,
Respectively, Ashbritt, Inc.; Ceres Environmental Services, Inc.; Phillips And Jordan, Inc.; And
Crowdergulf Joint Ventures, Inc., For Disaster Recovery Services; With Said Extensions Having
Been Deemed To Have Commenced Retroactively As Of February 1, 2013, And Terminable By
The City, For Convenience And Without Cause, Upon Thirty (30) Days Prior Written Notice To
The Contractors.
(Public Works)
(Revised Memorandum & Resolution)
1
Supplemental Agenda, June 5, 2013
C7 -Resolutions (Continued)
C7N A Resolution Waiving, By A 5/?ths Vote, The Formal Competitive Bidding Requirements, Finding
Such Waiver To Be In The City's Best Interest, And Authorizing The Procurement Of Construction
Services From Community Asphalt, The Florida Department Of Transportation (FOOT) Contractor, In
The Estimated Amount Of $131 ,330 To Adjust Or To Relocate Approximately Ninety-Three (93) Valve
Boxes, Fourteen ( 14) Sanitary Sewer Manhole Covers, Twenty-Two (22) Water Meter Boxes, Sixteen
(16) Fire Hydrants, Two (2) Water Services, And One (1) 8-lnch Water Main, In Conjunction With The
Fdot Right-Of-Way Improvement Project On Collins Avenue, From 5th Street To lincoln Road.
R7A Penn 17 Lease Agreement
(Public Works)
(Resolution)
R7 -Resolutions
1. A Resolution, Approving And Authorizing The Mayor And City Clerk To Execute Amendment
No.3 To That Certain Retail Lease Agreement By And Between The City Of Miami Beach,
The Miami Beach Redevelopment Agency (Collectively, Lessor), And Penn 17, LLC (Lessee),
Dated September 16, 2011, Involving The Lease Of Approximately 7,655 Square Feet Of
Ground Floor Retail Space At The Pennsylvania Avenue Garage, 1661 Pennsylvania Avenue,
Miami Beach, Florida; And Further Approving, Following A Duly Noticed Public Hearing As
Required By Section 142-362 Of The City Of Miami Beach Code, An Entertainment
Component, Which Will Be Added As An Additional Use Of The Leased Premises In
Conjunction With Tenant's Re-Opening And Re-Branding Of Such Premises. 10:00 a.m.
Public Hearing, Joint City Commission & Redevelopment Agency
(Real Estate, Housing & Community Development)
(Continued from May 8, 2013)
2 . A Resolution Approving The Transfer, As Such Term Is Defined In The Lease Agreement
(The Lease) By And Between The City Of Miami Beach, The Miami Beach Redevelopment
Agency (Collectively, Lessor), And Penn 17, LLC (Lessee), Of A 100% Controlling Ownership
Interest In Penn 17, LLC From The Current Managers/Members, Amir Ben-Zion And Ramon
Cherstvov (Transferors), To The Proposed Purchasers Of Penn 17, Roman Cherstvov And
OBK Project LLC (Transferees); With Approval Of Such Transfer Subject To And Contigent
Upon The Parties' Execution Of Amendment No.3 To The Lease And, Further, Satisfaction
By Transferees Of The Following Conditions (To Be Satisfied Prior To And As A Condition Of
Lessor's Execution Of Amendment No. 3): 1) Payment' Of Outstanding Rent For The Months
Of May And June, 2013; 2) Satisfaction Of Any And All Liens Against The Leased Premises
Including, Without Limitation, Liens And/Or Claims Filed By A & PAir Conditioning And Cors-
Air; 3) Dismissal, With Prejudice, Of The Lawsuit Filed By A & P Against The City To Collect
The A & P Lien; 4) Re-Payment Of The Remaining Balance Of Rent And CAM For November
And December 2012, In The Amount Of $120,519.98; 5) Replacement Of The Required
$50,000 Minimum Balance Into The Lessee Construction Fund; 6) Re-Location, At
Transferees' Sole Cost, Of The Leased Premises AIC Units To The Roof Of The
Pennsylvania Garage; And 7) Execution Of A General Unconditional Release In Favor Of The
City And RDA; And Further Waiving, By 5/?ths Vote, The Formal Competitive Bidding
Requirements, Finding Such Waiver To Be In The Best Interest Of The City, And Authorizing
The City Manager, Or His Designee, To Negotiate And Execute An Agreement With Halloran
Construction, Inc., In An Amount Not To Exceed $250,000.00, To Address The Relocation Of
The Kitchen Exhaust Venting System Installed By Penn 17, LLC. Joint City Commission &
Redevelopment Agency
(Real Estate, Housing & Community Development)
(Memorandum} 2
Supplemental Agenda, June 5, 2013
R7 -Resolutions (Continued)
R7J A Resolution Approving And Authorizing The City Manager Or His Designee To Submit An
Application To The US Department Of Justice For The Fiscal Year 2013 Edward Byrne Memorial
Justice Assistance Grant (JAG} Program, For Funding In The Approximate Amount Of $61,000 For
The City's Police Department Priorities; Appropriating The Grant, And City Expenses, If Approved And
Accepted By The City And Authorizing The Execution Of All Necessary Documents Related To The
Aforestated Application, Including, Without Limitation, Audits, And Authorizing The City Manager Or
His Designee To Take All Necessary Actions Related To This Grant.
(Budget & Performance Improvement)
(Resolution)
R9 -New Business and Commission Requests
R9C Update On The Miami Beach Convention Center Project.
(City Manager's Office)
(Memorandum)
3
Supplemental Agenda, June 5, 2013
Redevelopment Agency Items
1 A Penn 17 Lease Agreement
1. A Resolution, Approving And Authorizing The Mayor And City Clerk To Execute Amendment
No. 3 To That Certain Retail Lease Agreement By And Between The City Of Miami Beach,
The Miami Beach Redevelopment Agency (Collectively, lessor), And Penn 17, LLC (Lessee),
Dated September 16, 2011, Involving The Lease Of Approximately 7,655 Square Feet Of
Ground Floor Retail Space At The Pennsylvania Avenue Garage, 1661 Pennsylvania Avenue,
Miami Beach, Florida; And Further Approving, Following A Duly Noticed Public Hearing As
Required By Section 142~362 Of The City Of Miami Beach Code, An Entertainment
Component, Which Will Be Added As An Additional Use Of The Leased Premises In
Conjunction With Tenant's Re-Opening And Re·Branding Of Such Premises. 10:00 a.m.
Public Hearing, Joint Citv Commission & Redevelopment Agency
(Real Estate, Housing & Community Development)
(Continued from May 8, 2013)
2 . A Resolution Of The Chairperson And Members Of The Miami Beach Redevelopment
Agency, Approving The Transfer, As Such Term Is Defined In The Lease Agreement (The
Lease) By And Between The City Of Miami Beach, The Miami Beach Redevelopment Agency
(Collectively, Lessor), And Penn 17, LLC (lessee), Of A 100% Controlling Ownership Interest
In Penn 17, LlC From The Current Managers/Members, Amir Ben-Zion And Ramon
Cherstvov (Transferors), To The Proposed Purchasers Of Penn 17, Roman Cherstvov And
OBK Project LLC (Transferees); With Approval Of Such Transfer Subject To And Contigent
Upon The Parties' Execution Of Amendment No. 3 To The lease And, Further, Satisfaction
By Transferees Of The Following Conditions (To Be Satisfied Prior To And As A Condition Of
Lessor's Execution Of Amendment No. 3): 1) Payment ·Of Outstanding Rent For The Months
Of May And June, 2013; 2) Satisfaction Of Any And All Liens Against The Leased Premises
Including, Without Limitation, Liens And/Or Claims Filed By A & PAir Conditioning And Cors-
Air; 3) Dismissal, With Prejudice, Of The Lawsuit Filed By A & P Against The City To Collect
The A & P Lien; 4) Re-Payment Of The Remaining Balance Of Rent And CAM For November
And December 2012, In The Amount Of $120,519.98; 5) Replacement Of The Required
$50,000 Minimum Balance Into The Lessee Construction Fund; 6) Re-Location, At
Transferees' Sole Cost, Of The Leased Premises A/C Units To The Roof Of The
Pennsylvania Garage; And 7) Execution Of A General Unconditional Release In Favor Of The
City And RDA; And Further Waiving, By 5/7ths Vote, The Formal Competitive Bidding
Requirements, Finding Such Waiver To Be In The Best Interest Of The City, And Authorizing
The City Manager, Or His Designee, To Negotiate And Execute An Agreement With Halloran
Construction, Inc., In An Amount Not To Exceed $250,000.00, To Address The Relocation Of
The Kitchen Exhau.st Venting System Installed By Penn 17, llC. Joint City Commission &
Redevelopment Agency
(Real Estate, Housing & Community Development)
(Memorandum)
4
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And Th e City Commiss ion Of T he City Of Miami Beach , F lorida , Approving
Month-To-Month Exten sions Of The Agreements Be tween The City And Respectively, Ashbritt, Inc.; Ceres
Environ mental Services, Inc.; Phillips And Jord an, Inc.; And Crowdergulf Joint Ventures, In c., For Disaster
Recovery Services; With Said Extensions H avi ng Been Deemed To Have Commenced Retroactive ly As
Of February 1, 2013, And Terminable By The City, For Convenience And Without Cause, Upon Thirty (30)
Days Prior Written Notice To The Contractors.
K e Intended Outcome Su orted:
In the event of an emergency, such as a hurricane, the City lacks s ufficient resources to undertake debris
recovery operations. While assistance is available from the County, State and Federal governments , it is
not sufficient to restore a community that has suffered a catastrophic disaster. Also, the resources of the
various governments are spread thin over t he affected areas, necess itating contracted private secto r
assistance .
The City currently has contracts with the following four (4) companies for the provision of these services:
Ashbritt, Inc., Ceres Environmental Services, Inc., Phillips and Jordan, Inc., and Crowdergutf Joint
Ventures, Inc. The initial term of these contracts were effective throug h January 31, 2011, with three (3}
additional one-year options for renewal. These contracts were renewed through January 31 , 2013.
On February 8 , 2012, the Mayor and City Commission approved the issuance of a Request for P roposals
(RFP) for Disaster Recovery Services to select qualified contractors to assist the City with the restora tion
of operations afte r a catastrophic disaster.
On June 6, 2012, the Commission approved Resolution No. 2012-27917, authorizing the Administration to
enter into negotiations with the top ranked firms of Ceres Environmental services, Inc., Ashbritt, Inc, Tag
Grinding Services, Inc., Byrd Brothers Environmental Services, Inc., D&J enterprises , Inc., and Phillips
and Jordan , Inc., and furth er authorized the Mayor and City Clerk to execute agreement s upon conclusion
of successful negotiations by the Administration, and furth er approved the C ity 's exercise of a one (1) year
renewal term und er the City's current contracts for disaster recovery services w ith the following firms:
Ashbritt, Inc., Ceres Environmental Servi ces, Inc., Phillips And Jordan, In c., And Crowdergulf Joint
Ventures, Inc. (such renew a l term commen ced retroactively on February 1, 201 2, an d ended on January
31 ' 2013).
Pending negotiations and the execution of new agreements with the successful proposals, the City
Administration recommends t hat the Mayor and City Commission keep the current Agreement s in place ,
on a month-to-month basis, upon the same terms and conditions with such Agreements terminable by the
City, for conveni ence, upon thirty (30) days prior written notice to the Contractors.
THE ADMINISTRATION RECOMMENDS ADOPTING THE RESOLUTION
Advisory Board Recommendation:
I N/A
Financial Information·
Source of Amount
Funds:
---i OBP
Tota l
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking :
Rau l Aguila, ext: 6475
ment Director
MIAMI BEACH
Account
AGENDA ITEM
DATE
5
MIAMI BEACH
City of Miami Beach, 1700 Conve ntion Center Drive , Miami Beac h, Flo rida 33 139, www .mio mibeoch ll.gov
COMMISSION MEMORANDUM
TO : Mayor Matt i Herrera Bower and Me ion
FROM: Jimmy L. Morales, City Manage
DATE: June 5, 2013
SUBJECT: A RESOLUTION OF THE MAYO AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING MONTH-TO-MONTH EXTENSIONS OF THE
AGREEMENTS BETWEEN THE CITY AND RESPECTIVELY, ASH BRITT, INC.; CERES
ENVIRONMENTAL SERVICES, INC.; PHILLIPS AND JORDAN, INC.; AND
CROWDERGULF JOINT VENTURES, INC., FOR DISASTER RECOVERY SERVICES;
WITH SAID EXTENSIONS HAVING BEEN DEEMED TO HAVE COMMENCED
RETROACTIVELY AS OF FEBRUARY 1, 2013, AND TERMINABLE BY THE CITY, FOR
CONVENIENCE AND WITHOUT CAUSE, UPON THIRTY (30) DAYS PRIOR WRfTTEN
NOTICE TO THE CONTRACTORS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution .
ANALYSIS
In the event of an emergency, such as a hurricane, the City would lack sufficient resources to
undertake debris recovery operations. While assistance is available from the County, State and
Federal governments, it is not sufficient to restore a community that has suffered a catastrophic
disaster. Also, the resources of the various governments are spread thin over the affected areas ,
necessitating contracted private sector assistance.
It is in the City's best interest to enter into agreements with firms that have the capability and
flexibility to provide disaster recovery services in the event of a declared emergency that is of the
magnitude to utilize said professional services.
The Federal Emergency Management Agency (FEMA) provides public assistance funds for debris
clearance and removal and disposal operations. Eligible applicants include State and local
governments. On August 28, 2005, FEMA determined that the damage in certain areas of the State
of Florida resulting from Hurricane Katrina which occurred on August 24, 2005, and with Hurricane
Wilma shortly after, were sufficient in severity and magnitude to warrant a major disaster declaration
under the Robert T . Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121-
5206 (the Stafford Act).
6
Commission Memorandum -Disaster Recovery Services
June 5, 2013
Page 2 of2
The City currently has contracts with the following four (4) companies for the provision of these
services: Ashbritt, Inc., Ceres Environmental Services, Inc., Phillips And Jordan, Inc., And
Crowdergulf Joint Ventures, Inc .. The initial term of these contracts were effective through January
31, 2011, with three (3) additional one-year options for renewal. These contracts were renewed
through January 31, 2013.
On February 8 , 2012, the Mayor and City Commission approved the issuance of a Request for
Proposals (RFP) for D isaster Recovery Services to select qua lified contractors to assist the City w ith
the restorat ion of operations after a catastroph ic disaster.
On June 6, 2012 , the Commission approved Resolution No. 2012-27917, authorizing the
Administration to enter into negotiations with the top ranked firms of Ceres Environmental services,
Inc., Ashbritt, Inc, Tag Grinding Services, Inc., Byrd Brothers Environmental Services, Inc., D&J
enterprises, Inc., and Phillips and Jordan, Inc., and further authorized the Mayor and City Clerk to
execute agreements upon conclusion of successful negotiations by the Administration, and further
approved the City's exercise of a one (1) year renewal term under the City's current contracts for
disaster recovery services with the following firms: Ashbritt, Inc., Ceres Environmental Services, Inc.,
Phillips And Jordan , Inc., And Crowdergulf Joint Ventures, Inc. (such renewa l term commenced
retroact ively on February 1, 2012 , and ended on January 31, 2013).
Pending negotiations and the execution of new agreements with the successful proposals, the City
Administration recommends that the Mayor and City Commission keep the current Agreements in
place, on a month-to -month basis, upon the same terms and conditions with such Agreements
terminable by the City. for convenience, upon thirty (30) days prior written notice to the Contractors.
CONCLUSION
The Adm inistration re commends that the Mayo r and City Comm ission approve month-to-month
extensions of the Agreements between the City and respectively , Ashb ritt , Inc .; Ceres Environmenta l
Services, Inc.; Phillips and Jordan, Inc.; and Crowdergulf Joint Ventures, Inc., for disaster recovery
services; with said extensions having been deemed to have commenced retroactively as of
February 1, 2013, and terminable by the City, for convenience and without cause, upon thirty (30)
days prior written notice to the Contractors.
JLM\MT\ETC\JJF
T:\AG ENDA\201 3\Jun e 5\Disas te r Recovery Servi ces -M emo.doc
7
RESOLUTION. _________ _
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING MONTH-TO-MONTH EXTENSIONS
OF THE AGREEMENTS BETWEEN THE CITY AND, RESPECTIVELY,
ASH BRITT, INC.; CERES ENVIRONMENTAL SERVICES, INC.; PHILLIPS AND
JORDAN, INC.; AND CROWDERGULF JOINT VENTURES, INC., FOR
DISASTER RECOVERY SERVICES; WITH SAID EXTENSIONS HAVING BEEN
DEEMED TO HAVE COMMENCED RETROACTIVELY AS OF FEBRUARY 1,
2013, AND TERMINABLE BY THE CITY, FOR CONVENIENCE AND WITHOUT
CAUSE, UPON THIRTY (30) DAYS PRIOR WRITTEN NOTICE TO THE
CONTRACTORS.
WHEREAS, the City has contracts with the following four (4) companies for recovery
services: Ashbritt, Inc., Ceres Environmental Services, Inc., Phillips And Jordan, Inc., And
Crowdergulf Joint Ventures, Inc., which expired on January 31, 2013 (the Agreements); and
WHEREAS, at its February 8, 2012, the Mayor and City Commission approved the issuance
of a Request for Proposals (RFP) for Disaster Recovery Services, to select qualified contractors to
assist the City with the restoration of operations after a catastrophic disaster; and
WHEREAS, at its June 6, 2012, the City Commission authorized the Administration to
enter into negotiations with the top ranked firms: Ceres Environmental Services, Inc., Ashbritt, Inc,
Tag Grinding Services, Inc., Byrd Brothers Environmental Services, Inc., D&J enterprises, Inc., and
Phillips and Jordan, Inc.; and
WHEREAS, negotiations are still ongoing; and
WHEREAS, pending negotiations and the execution of new agreements with the
successful proposers, the City Administration recommends that the Mayor and City Commission
keep the current Agreements in place, on a month-to-month basis, upon the same terms and
conditions, with such Agreements terminable by the City, for convenience, upon thirty (30) days prior
written notice to the Contractors.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission hereby approve
month-to-month extensions of the Agreements between the City and respectively, Ashbritt, Inc.;
Ceres Environmental Services, Inc.; Phillips and Jordan, Inc.; and Crowdergulf Joint Ventures, Inc.,
for disaster recovery services; with said extensions having been deemed to have commenced
retroactively as of February 1, 2013, and terminable by the City. for convenience and without cause,
upon thirty (30) days prior written notice to the Contractors.
PASSED and ADOPTED this 51h day of May, 2013.
ATTEST:
Rafael Granado, City Clerk
T:\AGENDA\2013\June 5\Disaster Recovery. Reso.doc
Matti Herrera Bower, MayoAPPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
8
RESOLUTION NO.-----
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, WAIVING, BY A 5/7THS VOTE, THE FORMAL
COMPETITIVE BIDDING REQUIREMENTS, FINDING SUCH WAIVER TO BE
IN THE CITY'S BEST INTEREST, AND AUTHORIZING THE PROCUREMENT
OF CONSTRUCTION SERVICES FROM COMMUNITY ASPHALT, THE
FLORIDA DEPARTMENT OF TRANSPORTATION (FOOT) CONTRACTOR, IN
THE ESTIMATED AMOUNT OF $131,330 TO ADJUST OR TO RELOCATE
APPROXIMATELY NINETY-THREE (93) VALVE BOXES, FOURTEEN (14)
SANITARY SEWER MANHOLE COVERS, TWENTY-TWO (22) WATER
METER BOXES, SIXTEEN (16) FIRE HYDRANTS, TWO (2) WATER
SERVICES, AND ONE (1) 8-INCH WATER MAIN, IN CONJUNCTION WITH
THE FOOT RIGHT-OF-WAY IMPROVEMENT PROJECT ON COLLINS
AVENUE, FROM 5TH STREET TO LlNCOLN ROAD.
WHEREAS, the Florida Department of Transportation (FOOT) will begin construction of
the Collins Avenue Right-of-Way Improvement Projects on June 3 , 2013; and
WHEREAS, FOOT will reconstruct its r ight-of-way along Collins Avenue, f rom 5th Street
to Lincoln Road ; and
WHEREAS, the City must adjust or relocate its water and sewer utilities; and
WHEREAS, the City has coordinated this effort with the FDOT design engineers to
ensure the resolution of all conflicts based on available data; and
WHEREAS, in March 2013, FOOT selected Community Asphalt as the contractor to
construct the right-of-way improvements on Coll ins Avenue, from 5th Street to Lincoln Road; and
WHEREAS , to avoid coordination problems and construction delays , the City would
benefit from using the same contractor selected by the FOOT procurement process; and
WHEREAS, the estimated cost of the City work is $119,391 , plus a 10% contingency, to
cover any additional relocation of unmarked utilities that may be needed.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission
of the City of Miami Beach, Florida, hereby waive, by a 5/7ths vote, the formal competitive
bidding requirements , finding such wa iver to be in the City's best interest, and authorizing the
procurement of construction services from Commun ity Asphalt, the Florida Department of
Transportation (FOOT) Contractor, in the estimated amount of $131 ,330 to adjust or to re locate
approximately ninety-three (93) valve boxes , fourteen (14) sanitary sewer manhole covers ,
twenty-two (22) water meter boxes, sixteen (16) fire hydrants, two (2) water services, and one
(1) 8-inch water main, in conjunction with the FOOT Right-of-Way Improvement Project on
Collins Avenue, from 51h Street to Lincoln Road .
PASSED AND ADOPTED this 5t11 day of June, 2013.
ATTES T:
Rafael Granado, City Clerk
T :\AGENDA\2013\June 5\Colllns Avenue 5th thru Lincoln RA d C 1 J. 1
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Date "-S-13
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10
COMMISS ION ITEM SUMMARY
Condensed Title:
Resolution approving and authorizing the Mayor and City Clerk to execute a Third Am endm ent to that certai n Reta il Lease Agreement
by and b etween the City, RDA (Collectively , Lessor), and Penn 17, LLC (lessee), dated September 16, 2011, involving the lease at
the Pennsylvania Avenue Garage, 166 1 Pennsylvania Avenue, Miami Beach, Florida ("Lea se"); and further approving, following a
d uly noticed Public Hearing, an entertainment component, as an additional use for said Premises.
Reso lution of the Mayor and City Clerk approving the transfer/sale of 100% ownership intere st in Penn 17, LLC from Current
manage rs, Amir Ben Zion and Roman Cherstvov to Roman Cherstvov a nd OBK Project LLC; Further waiving by 5/7ths vote, the
competitive bidding requirements, finding such waiver to be in the best interest of the City, and authorizing the City Manger to execute
an agreement with Halloran Con struction Inc, in an amount not to exceed $250,000.00 , to relocate the kitchen exhaust system.
Key Intended Outcome Supported:
I ncrease resident satisfaction with the level of services and facilities.
Supporting Data (Surveys, Environmental Scan, etc.):
Approximately 40% of retail businesses surveyed , rank Miami Beach as one of the b est places to do business and 61% of the sam e
_grouj) would recommend Miami Beach as a place to do business.
Issue:
Shall the City commission authorize the execution of Amendment No. 3 to the Lease and further approve an entertainment
component, as an additional use for the Premises? Shall the City Commission authorize the transfer/sale of 1 00% ownership intere st
in Penn 17, LLC; and furth er waive the co mpetitive bidding requirements , permitting City Man ager to execute an agreement with
Halloran Construction Inc. for the relocation of the kitchen exhaust venting system for a fee not to exceed $250,000.00?
Item Summary/Recommendation:
Following receipt of an executed General Release by Penn 17 LLC on May 3, 2013, the City agreed to open and continue the above-
re ferenced Resolution/agenda item at the May 8th , 2013 City Commission meeting.
On May 17, 2013, the City issued written notice of default to Penn 17 LLC, for failing to pay rent for the month of May ($30,130.23);
failing to maintain the Premises open for business; failure to pay lienors; ( A&P Air Conditioning claim of lien and suit against the City,
totaling $73, 693; Cors-Air debt owed $3,001.92); failure to show proof of the construction deposit ( $50,000); and fai lure to notify th e
City of a transfer of interest in Penn 17, LLC , to Roman Cherstovov, subsequent to lease execution.
On May 14, 2013 Staff was provided with a Binding l etter of Intent, setting forth th e terms of the sale of Amir Ben-Zion's interest in
Penn 17, LLC to OBK Project, LLC ("OBK"), which sale would remove Amir Ben-Zion as a managin g member and l ea ve Roman
Cherstvov and OBK as managing members. Staff has requested financials and other qualification verifications. To date, OBK ha s
provided proof that its managing members have exper ience in the food/restaurant business and also have sufficient funds to cure th e
existing Lease defaults and operate the restaurant
Recommendation:
The Admini stration recomm ends approval of Resolution No. 1, approv ing Amendment No. 3 to the Retail Lease Agreement by and
between the City, the Mi ami Beach Redevelopment Agency (as Landlord), and Penn 17, LLC (as Lessee); which Amendment
includes terms and conditions for a proposed rent abatement, as approved by the Finance and Citywide Projects Committee
(FCWPC); and also includes the approval of an entertainment use on the Leased Premises.
Prior to, and as a condition to, approving Resolution No. 1, however, the Administration recommends that the City Commission first
approve Resol ution No. 2, which approves a transfer under the Lease in the controlling owne rship interest in Penn 17, LLC, from Amir
Ben-Zion and Roman Cherstvov, the current managers/members of Penn 17 {Tran sferors), to Rom an Cherstvov and OBK Project,
LLC (Eugene Alekseychenko and Oleg Elyutin, Managing Members), the proposed purchasers of Penn H (Transferees); subject to
and conditioned upon Transferees' satisfaction of the conditions set forth in Resolution No.2 (which should also be satisfied prior to
the City's execution of Amendment No. 3 to the Lease).
Finally, the Administration recommends tha t the Ma yor and Comm ission waive by a 5/7ths vote, the fo rmal competitive bidd ing
requirem ents, finding th at such waiver to be in the best interest of the City, and authorize the City Manager, or his designee , to
negotiate and execute an agreement with Halloran Construction Inc., In an amount not to exceed $250,000 to address the relocation
of the kitchen exhaust venting system installed by Penn 17, LLC.
Source of I I Amount
I 1 I
Financial Impact Summary:
Cit Clerk 's Office Le islative Trackin
MIAMI BEACH
roval of revis ed rent schedul e on Janua 24 2013
I
I
Account
AGENDA ITEM _ ...... R....:..7.....!-:..A....:.-_
DATE (.,-$-r~
11
(9 MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, M iam i Beoch , Florida 33 139, www.miamibeachH.gov
COMMIS SION MEMORANDUM
TO: Mayor Matti Herrera Bowe r an d Me
FROM: Jim my L. Mora les, City Mana ger
DATE: June 5, 2013
SUBJECT :
PUBLIC HEARING
(OPENED AND CONTINUED
FROM MAY 8, 2013)
1. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AMENDMENT NO. 3 TO THAT CERTAIN RETAIL LEASE
AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY (COLLECTIVELY, LESSOR), AND PENN 17, LLC
(LESSEE), DATED SEPTEMBER 16, 2011 , INVOLVING THE LEASE OF
APPROXIMATELY 7,655 SQUARE FEET OF GROUND FLOOR RETAIL SPACE AT
THE PENNSYLVANIA AVENUE GARAGE, 1661 PENNSYLVANIA AVENUE, MIAMI
BEACH, FLORIDA; AND FURTHER APPROVING, FOLLOWING A DULY NOTICED
PUBLIC HEARING AS REQUIRED BY SECTION 142-362 OF THE CITY OF MIAMI
BEACH CODE, AN ENTERTAINMENT COMPONENT, WHICH WILL BE ADDED AS
AN ADDITIONAL USE OF THE LEASED PREMISES IN CONJUNCTION WITH
TENANT'S RE-OPENING AND RE-BRANDING OF SUCH PREMISES.
(NEW ITEM)
2. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING THE TRANSFER, AS SUCH TERM IS DEFINED IN
THE LEASE AGREEMENT (THE LEASE) BY AND BETWEEN THE CITY OF MIAMI
BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (COLLECTIVELY,
LESSOR), AND PENN 17, LLC (LESSEE), OF A 100% CONTROLLING OWNERSHIP
INTEREST IN PENN 17, LLC FROM THE CURRENT MANAGERS/MEMBERS, AMIR
BEN-ZION AND RAMON CHERSTVOV (TRANSFERORS), TO THE PROPOSED
PURSHASERS OF PENN 17, ROMAN CHERSTVOV AND OBK PROJECT LLC
(TRANSFEREES); WITH APPROVAL OF SUCH TRANSFER SUBJECT TO AND
CONTIGENT UPON THE PARTIES ' EXECUTION OF AMENDMENT NO. 3 TO THE
LEASE AND, FURTHER, SATISFACTION BY TRANSFEREES OF THE FOLLOWING
CONDITIONS (TO BE SATISFIED PRIOR TO AND AS A CONDITION OF LESSOR'S
EXECUTION OF AMENDMENT NO.3): 1) PAYMENT 'OF OUTSTANDING RENT FOR
THE MONTHS OF MAY AND JUNE, 2013; 2) SATISFACTION OF ANY AND ALL
LIENS AGAINST THE LEASED PREMISES INCLUDING, WITHOUT LIMITATION,
LIENS AND/OR CLAIMS FILED BY A & PAIR CONDITIONING AND CORS -AIR ; 3)
DISMISSAL, WITH PREJUDICE, OF THE LAWSUIT FILED BY A & P AGAINST THE
CITY TO COLLECT THE A & P LIEN; 4) RE-PAYMENT OF THE REMAINING
12
C ity C omm is sio n Memo randum
Penn 17, LLC-Retail lease A mended Rent Schedule
June 5, 2013
Page 2 of8
BALANCE OF RENT AND CAM FOR NOVEMBER AND DECEMBER 2012, IN THE
AMOUNT OF $120,519.98; 5) REPLACEMENT OF THE REQUIRED $50,000
MINIMUM BALANCE INTO THE LESSEE CONSTRUCTION FUND; 6) RE-LOCATION,
AT TRANSFEREES' SOLE COST, OF THE LEASED PREMISES AIC UNITS TO THE
ROOF OF THE PENNSYLVANIA GARAGE; AND 7) EXECUTION OF A GENERAL
UNCONDITIONAL RELEASE IN FAVOR OF THE CITY AND RDA; AND FURTHER
WAIVING, BY 5/7THS VOTE, THE FORMAL COMPETITiVE BIDDING
REQUIREMENTS, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE
CITY, AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO
NEGOTIATE AND EXECUTE AN AGREEMENT WITH HALLORAN CONSTRUCTION,
INC., IN AN AMOUNT NOT TO EXCEED $250,000.00, TO ADDRESS THE
RELOCATION OF THE KITCHEN EXHAUST VENTING SYSTEM INSTALLED BY
PENN 17, LLC.
ADMINISTRATION RECOMMENDATION
Following opening and continuing of Resolution No. 1 above at the May 8, 2013 City
Commission Meeting, the Administration recommends approval of Amendment No. 3 to the
Retail Lease Agreement by and between the City, the Miami Beach Redevelopment Agency (as
Landlord), and Penn 17, LLC (as Lessee); which Amendment includes terms and conditions for
a proposed rent abatement, as approved by the Finance and Cityw ide Proj ects Comm ittee
(FCWPC); and includes the addit ion of an entertainment use on the Leased Prem ises.
As a condition of (and prior to) approval of Resolution No. 1, however, the Administration
recommends that the City Commission first approve Resolution No. 2, which approves a
transfer under the Lease in the controlling ownership interest in Penn 17, LLC , from Amir Ben -
Zion and Roman Cherstvov, the current managers/members of Penn 17 (Transferors), to
Roman Cherstvov and OBK Projec t , LLC (Eugene A lekseychenko and Oleg Elyut in, Manag ing
Members), the proposed purchasers of Penn 17 (Transferees); and that such approved
transfer, and the City 's execution of the proposed Amendment No. 3 be further subject to
Transferees' satisfaction of the conditions set forth in Resolution No. 2.
Finally, the Administration recommends that the Mayor and Commission waive by a 5/7ths vote,
the forma l competit ive bidd ing requirements, fin ding that su ch wai ver to be in t he best interest of
the City , and authorizing the City Manager , or his des ignee , to negot iate and execute an
agreement with Halloran Construction Inc ., in an amount not to exceed $250 ,000 to address the
relocation of the kitchen exhaust venting system installed by Penn 17, LLC .
BACKGROUND
On January 24 , 2013 , t he FCWPC recommended in favor of the fo ll owing re -negot iated Lease
terms , as proposed by staff:
1) applying one-third (1/3) of the Lessee's existing Security Deposit, representing
$47,844, toward Base Rent owed for the month of November, 2012 ;
2 ) deferring $8,474 for Common Area Maintenance (CAM) for November, 2012 , and
Base Rent plus CAM for De cember 2012 , leavi ng a ba lance in the total amou nt of
$64 ,791 (Back -Due Rent ) to be repa id in twe lve (12) equal month ly installments ,
commencing in January 2014 and ending in December 2014;
3) granting an abatement of 50% of the Base Rent and Common Area Maintenance
13
City Commission Memorandum
Penn 17, LLC-Retail Lease Amended Rent Schedule
June 5, 2013
Page 3 of8
(CAM) due for the six (6) month period commencing January 2013 , through July 2013 ;
4 ) granting a deferral of fifty percent (50%) of the Base Rent and CAM for the six (6)
month period , commencing July 2013 through Jan uary 2014 ("Deferra l Period "), to be
repaid by the Lessee in twenty four (24) equal monthly installments, commencing in
the sixth year of the Lease Term and ending on the last day of the seventh year of the
Lease Term;
5) reimbursement of the Security Deposit amount applied to Back-Due Rent, in the
amount of $47 ,844, to be repaid in twelve (12) equal monthly installments,
commencing in the f ifth year of the Lease Term and ending on the last day of the fifth
year of the Lease Term .
A schedule reflecting the revised rent schedule, as recommended by FCWPC, is included as
Exhibit "A" to this Memorandum.
The FCWPC also requested that any ag reem ent with the Lessee be subject to the inclusion of
release la ng uage absolving the City/RDA of any li ability. As requested by Commissioner Libb in
during the January 24, 2013 FCWPC meeting. Lessee provided the Administration with its
preliminary business plan for re-opening the Leased Premises (which had been closed since
December 2012). Lessee proposed an additional use, a lounge/bar component, which was not
permitted under the Lease. This proposed entertainment use (i.e. which contemplates a
combination of a deej ay and live music), is also not a main permitted use in the Civic and
Con vention Center (CCC) zon in g d istrict, and therefore not only requires City Commission
approval under the Lease . but also approva l following a public hea ring, as required under
Section 142-362 of the City Code.
On March 13, 2013, the Mayor and Commission adopted Resolution No . 2013-28167 (in
conjunction with RDA Resolution No . 592-2013), which accepted the FCWPC's
recommendat io n pertaining to the proposed Amendment No . 3 to the Lease . The City
Comm ission and RDA also set a pub lic hearing for April17, 2013 , regarding Lessee's proposal
to add an entertainment component as an additional use under the Lease .
During the March 13th discussion, the City Commission again requested that Amendment No . 3
also include : 1) a general release by Lessee waiving any claims against the City/RDA including ,
without limitation , those with regard to the ventilation and to the placement and/or re-location of
the Leased Prem is es air conditioning units ; 2) an add itional clause that Lessee adm its and
acknowledges that, but for approval of Amendment No . 3, it is in default of the Lease ; and 3)
additional language regarding an "expedited " eviction procedure and, to the extent possible ,
including certain waivers of defenses by Lessee. The Lessee was also requested to provide a
general release in conjunction with the City's preliminary approval of the proposed revised rent
schedule .
As of April 17, 20 13 , the Lessee had not been able to solidify its concept pla n or provide a site
plan , as requested by staff, in time to submit the necessary information fo r City Commission
consideration at the scheduled public hearing for the proposed entertainment use. Lessee had
met with representatives of the New World Symphony (NWS) and provided staff with a
confirmation letter from NWS, dated March 18, 2013, stating that " ... in the expectation of future
on-goi ng mutual cooperation between your operating staff and NWS to ensure that your
activities do not adversely affect NWS events and W allcasts, NWS has no issues with respect to
the enterta inment license ... " The Lessee expressed concerns with the Planning Department's
requirement to install a vestibule area within the Premises, as a condition of the proposed
entertainment component.
14
City Commission Memorandum
Penn 17, LLC -Retail Lease Amended Rent Sched ule
June 5, 2013
Page 4 of 8
At the May 8, 2013 City Commission meeting , and following Lessee's delivery of an executed
General Release to the City on May 3, 2013 , the City agreed to open and continue Resolut ion
No . 1, to allow the City and Penn 17 additional time to resolve the outstanding Lease issues.
However, following the continuation of Resolution No. 1 at the May 8, 2013 City Commission
Meeting , Penn 17 LLC has failed to adequately address the remaining Lease issues, which the
City in its letter to Penn 17, dated April 26, 2013, and which were a I so outlined in the May 8,
2013 City Commission Memorandum (See Attachment "B" for City's letter to Penn 17 LLC ,
dated April 26, 2013). Additionally, Penn 17 LLC has failed to pay its May rent and , on May 17 ,
2013, the City issued a Notice of Default to Penn 17 LLC . As of the date of this Memorandum ,
June 2013 Rent is also past due.
PROPOSED TRANSFER OF CONTROLLING INTEREST IN PENN 17, LLC
On May 14 , 2013 , an attorney representing Roman Cherstvov , who , unbeknownst to the City
(and without the City 's required consent of same) became a 50% managing partner of Penn 17
LLC after the execution of the Lease , provided a copy of a "Binding Letter of Intent," dated April
25, 2013, by and among Penn 17, LLC, OBK Project, LLC. (OBK), a Florida limited liability
company , and Amir Ben-Zion, setting forth the terms of the proposed sale of 50% of the
membership interest in Penn 17 to OBK (See Attachment "C"). As with the prior transfer to Mr.
Cherstvov (which was not consented to by the City), the proposed transfer to OBK requires the
City 's prior written consent under the Lease .
In an effort to obtain more information regarding the proposed transfer, the Administration
requested additional information on Mr. Cherstvov, as well as information regarding the
principals of OBK Project, LLC, Eugene Alekseychenko , and Oleg Elyutin , who are the
prospective buyers of Amir Ben-Zion 's remaining 50% ownership (The Administration's request
for informat ion is attached as Attachment "D" hereto). On May 21 , 2013 , a response was
received from Scott S. Levine (the attorney representing Mr. Cherstovov) which included
information regarding Mr. Alekseychenko 's and Mr. Elyutin's background in the restaurant
business (See Mr. Levine 's letter, dated May 21, 2013, attached as Attachment "E").
Notwithstanding the preceding, and since any transfer of an interest in the Lease (including the
sale or transfer of a controlling ownership in terest) requ ires the City 's prior written consent, the
City has : 1) no obligation to recognize the initial , unauthorized transfer to Mr. Cherstvov; and 2)
any future proposed transfer, including the proposed sale of an ownership interest to OBK
Project LLC, would be subject to prior City Commission approval (which approval is at the
Commission's sole discretion).
PENN 17 LLC'S DEFAULT UNDER THE LEASE
On May 15 , 2013, Amir Ben-Zion indicated to the City that he had no intention of re-opening the
restaurant within the near future, and effectively advised the City of his abandonment of the
Leased Premises (See Attachment "F").
On May 17, 2013 , the City provided Penn 17 LLC with written notice (See Attachment "G") of
the following defaults under the Lease (Note: the cure perio d for each default condition is
shown after each item in parenthesis):
15
City Commission Memorandum
Penn 17, LLC-Retail Lease Amended Rent Schedule
June 5 , 2013
Page 5 of8
1. failure to pay rent for the month of May, in the amount $30,130.00, which was due on
May 1, 20131 (five day cure period);
2. failure, under Section 3.5 of the Lease, to maintain Lessee's business on the Leased
Premises open for business to the public, fully fixtured, stocked, and staffed (30 day cure
period);
3. in violation of Section 5.6 of the Lease , a lien was recorded against the Premises by
A&P Air Conditioning (dated December 12, 2012 , and recorded in O .R. Book 28396,
Page 3630 of the Publ ic Records of Mia m i-Dade County , Flo rida; hereinafter referred to
as the "A&P Lien "), in the amount of $73,693. A&P has also filed suit aga i nst the City
(the "A&P Lawsuit"), demanding payment of the aforestated unpaid sum (15 day cure
period);
4. despite prior written notice from the City, failure to provide the City with evidence that a
prior claim by Cors-Air, in the amount of $3,001.92 (the "Cors-Air Claim"), has been paid
(15 day cure period}; and
5. despite prior written notice from City , and as required under Section 5 .2(n) of the Lease ,
failure to provide the City with evidence that Lessee has deposited, and/or otherwise
maintained , the m inimum required $50 ,000 Construction Deposit in the Lessee
Construction Fund (as such term is defined in the Work Letter and Escrow Agreement ,
which was incorporated into , and made a part of, the Lease) (30 day cure period).
The prior unauthorized transfer to Mr. Cherstvov, and the proposed transfer to OBK, if not
approved by the City, also represent potential additional events of default under the Lease. As
of the date of this Memorandum, Penn 17, LLC has failed to pay its May 2013 Rent within the
stated cure period ; Rent for June 2013 will be on June 10. Additionally. Penn 17 has failed to
cure the defaults in Item Nos. 3 and 4 above within the respective cure periods.
At this time, and in light of Penn 17 LLC 's multiple uncured defaults, the City has the right to
declare the Lease in default and proceed to avail itself of any and all available remed ies under
such Lease, including re-taking possession of the Leased Premises.
NEGOTIATIONS WITH PROPOSED NEW PURCHASERS/TRANSFEREES
Without waiving any of its rights under the Lease (as a result of Penn 17 LLC's default), on May
29, 2013 the City Administration met with Mr. Cherstvov, and the principals of OBK Project LLC,
Messrs. Mr. Alekseychenko's and Mr. Elyutin 's, and their respective counsel. As an alternative
to the City's proceeding with the default against Penn 17, the proposed new
Purchasers/Transferees propose the following , in exchange for the City Commission 's approval
of the proposed transfer under the Lease (to Transferees), and approval and execution of the
proposed Amendment No . 3 (including the new payment schedule that was recommended by
the FCWPC and approval by the City Commission on March 13, 2013):
1 The aforestated rental amount represents 50% of the May rent originally set forth in the Lease. The C ity Commission's adoption
of Resolution No . 2013·28167 recommended approval -subject to and contingent upon the City Commission's subsequent
approval of a p roposed Amendment No. 3 to the Lease -of a 50% rent abatement, f rom January 13, 2013, to July 12, 20 13. S ince
the C ity Commission has never finalized its approval of Amendment No. 3 to the Lease, and has therefore not finalized its app roval
of the more favorable revised rent abatement schedule, the City has, to date, held off on demanding th e current total rent due
(a bse nt the City Commission 's fin al approval of Amendment No . 3 and of th e revised re nt ab atement schedule). of $342,074.61 (th e
full amount rent due through May 30, 2013) by, notwithstanding the preceding , reserves any and all rights to reclaim the FULL
amount of rent due under th e Le ase.
16
City Commission Memorandum
Penn 17, LLC-Retail Lease Amended Rent Schedule
June 5 , 2013
Page 6 of 8
1. payment of the requested rent for May and June 2013, in the amount of $60,260.00,
(This is based upon the rent payment schedule set forth in proposed Amendment No. 3
to the Lease);
2. re-payment of the remaining balances of Rent ($95,687.50), CAM ($16,948.00) and
applicable sales tax ($7 ,884.48) for the months of November 2012 and December 2012,
which total $120 ,519 .98 ;
3. deposit of the minimum required Construction Deposit balance , in the amount
$50,000.00, into the Lessee Construction Fund, under the Escrow Agreement;
4. release of the A&P Air-Conditioning lien, and or the posting of $73,693.00 in an escrow
account to cover payment of this lien;
5. proof of payment to Cors-Air, in the amount of $3 ,001.92 ;
6. payment for the relocation of the air conditioner units to the roof of the parking garage.
7. Contractor's Affidavit from Halloran that there are no other outstanding liens or claims for
labor, materials, or equipment.
Mr. Levine has confirmed that funds, totaling $157,000.00, have been deposited into his trust
account and will be released and wired to the City upon the City Commission's approval of the
proposed transfer to Transferees. In addition . funds for the June rent payment, in the amount of
$30 ,130.00, shall be deposited into his trust account during the week of June 3, 2013 .
Assuming the City Commission is satisfied with the due diligence information which the
proposed Purchasers/Transferees have provided to the Administration, approval of the
proposed transfer would be in the best interest of the City. The proposed
Purchasers/Transferees are proposing more favorable terms, in that they are agreeing to pay
the balance of Rent and CAM payments owed for November and December of 2012; pay the
past-due May (and June) 2013 Rent; and pay all known and unpaid lienors; all for a total
additional value of $257 ,474.90. The Transferees have the financial ability to cure all the
existing defaults under the Lease , as well as the experience to open and run a restaurant
business. This is an opportunity for the City to save the expenses associated with securing a
new Lessee , which expenses could include real estate commissions , plus a minimum of six (6)
months of rent loss.
VENTILATION SYSTEM RECONFIGURATION
On August 17, 2012 , as the build-out of Cooper Avenue was nearing completion, the City was
contacted by the New World Symphony (NWS). which expressed major concerns over the
venting locations of the Lessee's kitchen exhaust and steam vent from the dishwashers, which
both direct into the service alley between the Garage and NWS . The NWS believes the kitchen
exhaust could potentially permeate the performance hall every time the loading dock doors are
opened (which are directly opposite the kitchen exhaust vent).
Following an extensive series of meetings with representatives from the NWS and the Lessee's
management and design team to figure out options for mitigating odors emanating from the
17
City Commission Memora ndum
Pe n n 17, L L C-Retail Lease Amended Rent Schedule
June 5, 201 3
Pa ge 7 of 8
exhaust venting , the NWS instead demanded that the City and Le ssee explore design
alternatives for redirecting the kitchen exh aust in its entirety, away from th e alley. Although the
discussions centered on the fact that the City could not yet know whether or not there was a
problem, in an abundance of caution the City authorized the Less ee to direct his architect to
develop several alternatives to address the NWS conce rns.
On September 1 0, 2012, the City entered into a Letter Agreement with the Lessee pertaining to
the engagement of architectura Vengineering services, at a not-to-exceed cost to the City of
$25,000, in order to deve lop conceptu al design options and prelimina ry pricing estimates to
modify the exhaust venting system for the City's consid erat ion and approval; and further to
include services for the preparation of detailed plans and speci fications (includin g any layouts,
architectural, mech anica l, structural, electrical and other plans , drawings and construction
documents in sufficient detail to obtain any and all appropriate regul atory permits), as may be
reasonably required by the City's Building Department in order to process and review Lessee's
permit application for such modification as approved.
S ub sequent to the ope ning of the Cooper Avenue restaurant it was determined that there is
odor in the alleyway between the garage and concert hall. While it is not known if the odors
wou ld permeate the inside of the performance hall , in order to address a potential nega ti ve
impact the Administration sugge st that the Commission consider relocating the vent s.
In an effort to mitigate this situation, the Administration identified savings from the original
construction budg et of the Pennsylvania Avenue Garage (RDA Fund 365) for the relocation of
the ventilation system. The City Commi ssion adopted Resolution No. 2012-28067 in
conjunction with the Redevelopment Agen cy's (RDA) Resolution No . 590-20 12 .
The City subsequently contracted with TLC Engineering for Architecture (TLC) to review the
design of the ventilati on system, issue a report with construction cos t estimates and a lternative
designs to relocate the ventilation system exhaust termination point to the Pennsylvania Avenue
Garage vehicle exit. The alternatives were reviewed by the Ci ty, NWS and Halloran
Constru ction Inc (Halloran) who was the contractor for Penn 17, LLC for the restaurant build
out. All parties ag re ed with the design recommended by TLC , which included carbon filter
scrubbers.
Halloran will be contracted by Penn 17, LL C to relocate the air conditioning compressors from
its current location to the roof of the garage. The ventilation system improvements will take
approximately eight (8) weeks to manufacture, deliver and install. In an effort to expedite the
work and have the restaurant re-open, the Admin istration recommends the Mayor and
Comm ission, and Members of the Redevelopment Agency, waive by a 5/7ths vote, the formal
competitive bidding requirements, finding that such waiver to be in the best interest of the City,
and authorizing the City Manager, or his designee, to negotiate and execute an agreement with
Halloran Constru ction Inc., in an amount not to exceed $250,000 to add ress the relocation of
the kitchen exhau st venting system install ed by the Pennsylvania Avenue Garage Retail
Lessee, Penn 17, LLC. Securing the services of the existing Contractor would be more cost
effective since Contractor is already familiar with the development and therefore can expedite
the completion of the final modifications , allowing for an earlier opening date.
RESTAURANT CONCEPT
Attached is a pro-forma for the restaurant concept proposed by Penn 17, LLC, if the transfer is
approved by the City Commissi on.
18
City Commission Memorandum
Penn 17, L LC-Retail Lease Amended Rent Schedule
J un e 5, 2013
Page 8 of 8
CONCLUSION
The Administration recommends approval of Resolution No. 1, approving Amendment No. 3 to
the Retail Lease Agreement by and between the City, the Miami Beach Redevelopment Agency
(as Landlord), and Penn 17, LLC (as Lessee); which Amendment includes terms and conditions
for a proposed rent abatement, as approved by the Finance and Citywide Projects Committee
(FCWPC); and also includes the approval of an entertainment use on the Leased Premises.
Prior to, and as a condition to, approving Resolution No. 1, however, the Administration
recommends that the City Commission first approve Resolution No . 2, which approves a
transfer under the Lease in the controlling ownership interest in Penn 17, LLC, from Amir Ben -
Zion and Roman Cherstvov, the current managers/members of Penn 17 (Transferors), to
Roman Cherstvov and OBK Project, LLC (Eugene Alekseychenko and Oleg Elyutin, Managing
Members), the proposed purchasers of Penn 17 (Transferees); subject to and conditioned upon
Transferees' satisfaction of the conditions set forth in Resolution No. 2 (which should also be
satisfied prior to the City's execution of Amendment No. 3 to the Lease).
Finally, the Administrati on recommends that the Mayor and Commission waive by a 5/7ths vote ,
the formal competitive bidding requirements, f inding that such waiver to be in the best interest of
the City, and authorize the City Manager, or his designee, to negotiate and execute an
agreement with Halloran Construction Inc., in an amount not to exceed $250,000 to address the
relocation of the kitchen exhaust venting system installed by Penn 17 , LLC.
JLM\KGB\MAS\GT
At tachments:
A -April 26 , 2013 Letter to Penn 17 LLC outlining deficiencies
B -May 14, 2013 Email from Scott S. Levine , Esq . and Binding Letter of Intent
C-May 14, 2013 Email to ScottS. Levine, Esq., requesting additional information
D-May 21, 2013 Lette r from Scott Levine, P.A.
E -May 15, 2013 Email from Amir Ben-Zion
F -May 17, 2013 Default Letter to Penn 17, LLC
G -May 24, 2013 E-mail from Scott Levine , Esq. to Kathie Brooks
T :\AGENDA\2013\June 5\Penn 17 Memo 06052013 .docx
19
Jan :.!4 :.!U 13
Penn 17, l LC Rent Sched ule
Leote Commenceme nt: October 13 20 I 1
Wise YtaG 2
01/13/l3
02/13113
03/13/13
04/13/1 3
OS/l3/13
06/13/13
D7/13/13
08/l3/13
09/13/13
Totol:
Lease Y tor: J
ll/13/13
12/13/13
01/13/14
02!13/14
03!13/1 4
04113/1"
05/13/14
06/13/14
07/13/14
08/13/14
09/13/14
Total:
Loose Yeac 4
Page I of2
11/13/14
12/13/1 4
01/13/15
02113/lS
03/13/15
04/13/15
05/13(15
06/13/15
07/13!15
0811 3/15
09/13/15
Total:
Base Rent
$ 47.843.75
$ 47.843.7 5
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47,843.75
$ 47,843.75
$ 47 .843.75
$ 47.843.75
$ 430.593.75
ease Rent
$ 49,279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49,279.06
$ 49,279.06
$ 49 .279.06
$ 49.279 .06
$ 49.279.06
$ 49,279.06
$ 49,279.06
$ 49,279.06
s 591,348.72
Bose Rent
$ 50.757.43
$ 50,757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757A3
$ 50.757.43
$ 50.757.43
$ 50.757.-43
$ 50.757.43
s 609,089.16
EXHIIIT A
Rent Commence me nt: April 14.2012
Repayment CAM
$ $ 8.474.00
$ $ 8.474.00
t> $ 8.474.00
$ $ a474.oo
$ $ 8,474 .00
$ $ 8.474.00
$ $ 8.474 .00
$ $ 8.474.00
$ $ 8.474.00
$ $ 76.266.00
Repayment (1 aMd 2) CAM
$ 2.658.00 $ 8.474 .00
$ 2.658.00 $ 8.474.00
$ 2.658.00 .$ 8.474.00
$ 8.057.00 $ 8.474.00
$ 8.057.00 $ 8.474 .00
$ 8.057.00 $ 8.474.00
$ 8 .057.00 $ 8,474.00
$ 8,057.00 $ 8,474 .00
$ 8.057.00 $ 8.474 .00
$ 8.057.00 $ 6.474.00
$ 8.057.00 $ 6.474 .00
$ 8 .057.00 $ 8 .474 .00
$ 80.487.00 $ 101,688.00
Repayment (1 and 2) CAM
$ 8.057.00 $ 8,474.00
$ 8.057.00 $ 8.474.00
$ 8.057.00 $ 8.474 .00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2.658.00 $ 8.47-4.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474 .00
$ 2.658.00 $ 8.474.00
$ 2.658 .00 $ 8,474 .00
s 48.093.00 s 101.688.00
~
(II Repoymenl ol remaining Nov/Doc 2012 bolance ($64.791}
(2) Repayment ot July 2012 and Avgusl2012 rent ($95.688.001 per
Second Amendmenl
131 Repayment of secunly d8P05if ($47 .8-441
(41 Repoymenl or July 201:llhrough December 2013 deferr ed rent
{$171.106.231
Current Pcopased
Rent Rent Total Monthly Total Monthly
AbGtement Deferment Payment Payment
$ (28. 158.88] $ $ 56.317.75 $ 28,158.87
~ (28, 158.88) $ .f> 56.317.75 $ 28.1 58.87
$ (28. 1 58.88) $ l> 56.317.75 $ 28,156.8 7
$ (28.1 58.88) $ ~ 56.317.75 $ 28,158 .87
$ {28,158.88) $ s 56.317.75 $ 28.158.87
$ {28.158.88) $ ~ 56.317.75 $ 28,158.87
$ $ {28.158.88) $ 56.317.75 $ 28.158,87
$ $ {28, 1 58.88) $ 56.317.75 ~ 28.158 87
$ $ {28, 158.88) $ 56.317.75 $ 28.158.87
$ (168. 953.28) s (84.476.64) s 506,859.75 $ 253.429.83
Cunent Proposed
Rent Rent Total Monthly Total Monthly
.Abatement Deferment Payment Payment
$ $ (28.876.53) $ 60.411.06 $ 31.534.53
$ $ (28.876.53) $ 60.411.06 $ 31.534.53
$ $ {28.876.53) $ 60,41 1.06 $ 3 1.534.53
$ $ $ 65.810.06 $ 65.8 10.06
$ $ $ 65.810.06 $ 65.81 0.06
$ $ i 65.810.06 $ 65.810.06
s $ $ 65.610.06 $ 65,810.06
$ $ $ 65.8 10.06 $ 65,8 10.06
$ $ $ 65.810.06 $ 65,81 0.06
$ $ $ 65.810.06 $ 65.810 .06
$ $ $ 65.810.06 , 65.810.06
s $ $ 65.810.06 $ 65,810.06
s s (86.&29.59) $ 773.523.72 s 686,894.13
Current Proposed
Rent Rent Total Motlfhly Tofol Monthly
.Abatement Deferment Payment Payment
$ $ $ 67.288.43 $ 67,288 .43
.$ $ $ 67.288.43 $ 67.288 .43
$ $ $ 67.288.43 $ 67.288.43
$ $ $ 61.889.43 $ 61.889 .43
t. $ $ 6Ul89.43 $ 61.889.43
$ $ $ 6l.B89.43 $ 61,889 .43
$ $ l 61.889.43 $ 61.889.43
$ $ $ 61.B89.43 $ 61.B89.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 6 1.889.43 $ 6 1,889 .43
$ $ $ 6 1.889.43 $ 61.889.43
$ $ s 758.870.16 $ 758,870 .16
EXHIBIT A
20
Jan ;l4 :lU 1.:s
Pe nn 17, LlC Rent Sche dule
Lease Commencement: October 13. 2011
l•a" Y•ar: 5
11/13/15
12113/15
01113116
02113/16
0311 311 6
04/1 3/1 6
05/13/16
06/13116
07/13/16
08113/16
09/13/16
Total:
beqse Year: 4
11/13116
12/13/16
01/13/17
02/13/17
03/13/17
0<4/1311 7
0511 311 7
06 11 3/17
07/13/17
08/13/17
09/13117
Total:
LfOSt Year; l
Page 2 of 2
11/13/17
12113/17
01/1 3/18
02/13/18
00/13/18
04/13/18
05113/18
06!13/lB
07/13/1 8
08/1 3/16
09/13/16
Toto1:
aose Rent
$ 52,280.1 5
$ 52.280.15
$ 52,280.15
$ 52,280.15
$ 52.280 .15
$ 52.280.1 5
$ 52.280.15
$ 52.280.15
~ 52.280.1 5
$ 52.280 15
$ 52.280.15
$ 52,280.1 5
$ &27,361.80
Base Rent
$ 53.848 . .56
$ 53.848.56
$ 53.848.56
$ 53.848.56
$ 53.848.56
$ 53,848.56
$ 53.646.56
$ 53.848.56
$ 53,848.56
$ 53.8~8 .56
$ 53,848.56
$ 53.848.56
$ 646,182.72
Base Rent
$ 55.464.02
$ 55.464.02
$ 55,464.02
$ 55,464.02
$ 55,464 .02
$ 55.464.02
$ 55.464.02
$ 55,464.02
$ 55,464.02
$ 55,464.02
$ 55,464 .02
$ 55.464.02
$ 665,568.24
EXHIBIT A
Rent Commencement: Aprill4. 20 12
Repayment (2 ond 3) CAM
$ 6,64S.OO $ 8.474 .00
$ 6.645.00 $ 8.474.00
$ 6.645.00 $ 8.474.00
$ 6,645.00 $ 8.474.00
$ 6.6~5.00 $ 8.474.00
$ 6.645.00 $ 8.474.00
$ 6.645.00 $ 8 .47 4.00
$ 6.64500 $ 8 .474 .00
$ 6.645.00 $ 8,474.00
$ 6.645.00 $ 8.474.00
$ 6.645.00 $ 8,474.00
$ 6.645.00 $ 8.474.00
$ 79.740.00 s 101.688.00
Repayment (4) CAM
$ 7.129.43 $ 8.474.00
$ 7,1 29.43 $ 8.474.00
$ 7,1 29 .43 $ 8.47~.00
$ 7,129.43 $ 8.474.00
$ 7,129 .43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 6.474.00
$ 7,1 29.43 $ 8 .474.00
$ 7.1 29.43 $ 8.474 .00
$ 7.129.43 $ 8.474 .00
$ 7,129.43 $ 8.47·(00
$ 7.129..43 $ 8.474 .00
s 85.553.1 6 $ 101,688.00
l!epoymenl (4) CAM
$ 7.129 .43 $ 8.474 .00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474 .00
$ 7.129 .43 $ 8.474.00
$ 7.129.43 $ 8,474 .00
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8.47<4 .00
$ 7.1 29 .43 $ 8.474.00
$ 7,1 29 .43 $ 8.474.00
$ 7,129.43 $ 8.474.00
s 85.553,16 $ 101,688.00
~
(1} Repoym enl otremolning Nov/Dec 2012 balance ($64.7911
121 Repoymenl ol July 2012 and Avgu~l2012 renl ($95.688.00) per
Second Ama<ldment
(31 Rapoymenl ol sacurily deposll 1$•7.84~)
f4l Repoymenl ol July 20131tvoug h December 20 13 deferred renl
($17 I. 106.23)
Current Proposed
Rent l!ent Toto! Monthly Totol Monthly
.\botement Delerment Payment Payment
$ $ $ 63.412.15 $ 67.399.15
$ $ $ 63.412.15 $ 67,399.15
$ $ $ 63.412.15 $ 67,399.15
$ $ $ 63.412.15 $ 67.399.15
$ $ $ 63.412.15 $ 67.399. IS
$ $ ~ 63,412.15 $ 67.399 .15
$ $ .$ 63.41215 $ 67,3'19.1 5
$ $ ~ 63.4 12.15 $ 67,399.15
$ $ $ 63.412.15 $ 67.399.15
$ $ $ 63.412.15 $ 67.399.15
$ $ $ 63.412.15 $ 67.399.15
$ ~ ~ 63,412.15 ~ 67,399.15
$ s $ 760,945.40 $ aoa.7n.ao
Current Proposed
Rent Rent Total Monthly lolol Monthly
Abotement Deferment Poyment Poymenl
$ $ ~ 62.322.56 $ 69,451.99
$ $ ~ 62.322.56 $ 69.4515'9
$ $ $ 62.322.56 $ 69 ,45 1.99
$ $ $ 62,322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69.~51.99
$ $ $ 62.322.56 $ 69.451.99
s $ s 747,870.72 s 833.~2l.88
Cun•nt Propos.~
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63,938.02 $ 71.06 7.45
$ $ $ 63.938.0'2 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63,938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71,067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63,938.02 $ 71.067.45
$ $ $ 63,938.02 $ 71.067 .45
$ $ $ 63.938.02 $ 71.067.45
$ s $ 767,256.24 $ 852,809.40
21
; ,.
MIAMI BEACH
City of Mlaml leach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.mlamlbeachfl.gov
REAl ESTATE, HOUSING & COMMUNnY DEVElOPMENT
Tel: (305) 673-7000-(305)673·703 3
BY CERTIFIED MAIL RETURN RECEIPT BEQUESTED
April 2S, 2013
Amir Ben Zion
Managing Member
Penn 17, LLC
1661 Pennsylvania Avenue, Suite 6
Miami Beach, Fl.. 33139 . . :· . '
Copy sent vis electronic mall to:
amiGben·zion@[csnv.com
thai®coop~ravenue.com
. (
Re: Leas~ Agreem.int. (the ~~~ea;en) between' the. Crty 9f ~lamr Seac~, F.lorrda, the
Mlaml S~ach ·R~dev;Jopment Agency (hereinafter . coJiact(vely referred .to is
uLandlord'.~), and Penn 17, r,.~c ("T~I}an~"), lnv~lving th.eleaae of approximately
7,656 aquar~ feet of .ground floor retaU apace at the P~trinsylv!lnla Avenue Gill~ge,
1661.PennayJv4\nla Avenue, Miami Beach, Florid§& ("PremJ~es") · . . . . . . . . : -.. ·
Dear Mr. Ben-Zion: .
As you.may be aware, the Public Heating that h~d originally beEm scheduled before the City
Commissl.on .on April17., 2013,.tp cc;>nsiqer a proposed chEmge .of use to 1ha Premises, as wall
as to oon~ldj9r th.e .proposed Am.e'p,dm,ent No . 3 .. to the Lease, was re-$cheduled to be heard at
the· City Cory·1mlt?slon me.etlng on· May 8, 2013. This ·was due to the fact that you were unable to
comply .. wlth :.cert~lr} · q~s~~l)din9 . .J ~sues .wh ich needed. to b.~ resC?IYed prior to 'the .City
Comm iss ion's consideration of the afo restated items. As of the date of this l.$tter, these same
Issues· remain outstanding, a~ follows: . . . . . .
1. The city re~u~res :~ ~e~:r~ed ·~~PY o(an .otder by th.e Court,. ~lsmisslng with prejudice ART
o..ywau•s·ll:~wsuJt agair;St ~h~ .City. . . ' . · · . :·. ·_ '·.. · ... .: ... ·.: · · . · · . . ~ . . . . . . : . . · .. · ..
2 . The defi.cl.e.r;~'cjes ln . T~n~nt 's . C.on~?tructi~n ·F:und, orlgi.nally .Identified In the City's
correspondet:lceJ. (i(ilted Mii t~h 26.1 2,01~ {a copy of which Is attapne~ as Exhibit "A",~ereto), 'flll
need to l)e ~e.s,olve.d . ~pecifi ~a.rry, ~e 9it)t h.a~ not .yet a.greed to accept ,the 'copies 'of
che~~s!payry1ents made .from.} enal')t's own. construction. ~ccount (provided to .us by Tel)ant's
. Escrow 'Agent In 1ts written response to t.he. City, dated.April3, 2013), as satisfying the $1 MilliQn
T en~nt .~mprovemEmt . tl'treshold regu.lrement specified In. the ·w~rk L~tter and . eecrqw
Agreement. · · . . .. · · ...
3. In the .City's sam~ corr,spond~nc~ .(referenced In Item 2 above), we informed you that the
Tenant's ·constructjon Fund was·not to be reduced to les~ than $50,000, until such time that
Tenanr~ work. has been substa.nti~lly comph~t~d, a$ determined by th.e .Landlord,ln Its sole arid
reasonable dlllJcretion. . . . ·.. '•!. • : ... • :: . ... . • • ' • . .
. . ... ·
4. PurSuantto theApril3, 2013 r~sponse f~m Tenanfs Escrow Agent (attached as Exhlb!t~a"
herefo), the T4)nant..wa ~ to d~p_osit. $64,828.92 into. the T.enant ConStruction Fund by April15,
2013, to cover two ' (2) .but~t~n <.t l ng claim notices, as wei! as ·the original Notice of U&n flied by
ART Orylivall, noted as follows : · · . . ·. · · ·
FXHIBIT R
22
Mr. Amlr Ben Zion
Aprl/26; 2013
Page2of3
Date Contractor/Supplier
10/27/11 Cors-Air
12/14/11 Art Drywa ll
01/24/12 MP Flrestop Corp
Amount Correspondence
$ 3001.92 Notice of Non-Pavment
$53,927.00 Notice of Non-Payment
$ 7 900.00 Notice of Lien
As stated In Item No. 1, the City requires that the ART Drywall lien (which has now resulted In
ART's filing of a lawsuit against the City), be satisfied via an Order of dismissal. We will require
satfsfactJon of liens and releases for the other two (2) liens (Cors-Air and MP Firestop Corp) .
. 5. As a condition of the. City's approval of Resolution No. 20.13-28167 (attached as Exhibit •c•
hereto), Tenant verbally agree~ at the March 13, 2013 City Commission mestlng to execute a
General Rel.ease, attached as Exhibit "D" hereto, waiving any and all claims against the City
including, without limitation, thos~ with. regards to the kitchen ventilation and .relocation of the air
~ndltlonlng system. . ·
6: Site plans were to be submitted to the City prior to the Public Hearing In connectJon with
Tenant•s proposed entertainment use. The plans were to reflect certain conditions requ!r~d by
the Planning Department, attach~d as Exhibit "'E" hereto.
It Is lmperatlve that you either comply with or, where n.oted, provide the City with the Information
requested In, Item Nos. 1-8 above, by no later than Aprll30, 2013, so tha~ we may advise the
City Comrn!sslon accordingly. and determine whether to proceed with the May 8, 2013 Public
Hearing and consideration of Amendment No. 3. Failure to do so niay result in the proposed
Mays. 2013 ftems being withdrawn from the City Commission meeting agenda, and in Tenant
b&ii1.Q placed In d~f~u lt. of the l,..ease, which remedies may Include the return, of the Premises to
the City; ·tne acceleratJon of rent due and payable through the remaining term of the Lease,
including all rentd~ferra.J amounts to date; the Initiation of legal proceedings; a~dJhe ~cov~ry of
any oosts and reasc;mable attorney's f~es resulting therefrom. · . · . . · · . . . . ~ . ~ .·· . ..... . : .
PLEA~~, ~~v.~¥~N ~o~~$E.~.~.~~coRDING\-v
; . :·· ... ~ :, . .. . . . . . . . . . . . . .
;;;;~.' ' · ...
Kathie G. Brooks ·
•• 0 • •• • • ·~ •• •
: .. :·: •• : 0
·: .
Assistant City ~anager
AP:KOB
Attachments
23
,,
Mr. Amlr Ben Zion
Aprl/26, 2013
Page3of3
Copies to:
Mr. Steven E. McNeff
Reglster8d Agent
Penn17 ,llC
45 N.E. 41 Street
Miami, Fl 33137
Mr. Amir Ben-Zlon
585 N.E.-58th Street
Miami, FL 33137
cc: JJmmy L. Morales, City Manager
Jose Smith, City Attorney
Raul Aguila , Chief Deputy City Attorney
.. Anna P.arekh, Director of .Housi ng/Communlty Development
Kent 0: Bonde, Interim Leasing Specialist
F:\$AIMiaei\PennJY!vanla Ave Ga111ge L.eaaea\Penn 17, LLC\Penn '17-Penn 17 Outstanding laauea 04-26-20'13
..
.·
24
' ' '•.
' J
. •.
'I
(
MIAMI BEACH
EXHIBIT A
City oi.Mfamlh_., 1100 ConYitllfe~n Cenlllr D!fw, Mlomt ~tad, florldo 33 I 39, WYrW.mlcldlnad!lgDY
. lEAl. £$lATE, HOUSING & COMMUNITY DM\OPMENT
Tel: fS05f61J.tJ93 .. pOSJ 6.n103S
March 26. 2013.
Mr. Amfr Ben Zion
Managrng Member
Penn 17, LlC.
1881 Pennayfvanls Avenue, Suite 8
·Miami Beach, FLS3139
'• I
....,_ of; '"'"'DY A. Rynor, Esq. 0 Mltranf, Rynor,Adamaky& Toland.PN-
301 Arfhur G~y Road, PH
MlamJ Btach, FL. 33t4D
. ·. ~py Hnt via l .fedronlo mall, rec:elpt llqueafad fD:
· · , .. , .. : . · .·.,m !r.btjl-zJonOfcAnv.oom: emrreroa nv,m ;
, . f.!!a 1Aoo!!I)81JYpo lf1.00m
· . )!RynoCOmllrani.QQ/D
' . : . .. ·. . . . . . .. •. '•
RE: Wort ,~r and etcrow AQ~em~~.fWork J..e~r). by .and be~n the _ City of
Mflml.leach, Mlaml ~each ftedeve~opmant Agency {collectively •&.andford"), ind
P•nn 17, .LLC (11Tt,.rit"), incl Mftranl, Rynor,· ~damak,v & )"ofJnd, PA (11Eacrow
AcJenf'), d.ated !Uzgiltf ~e. zou · · . ·.· .. · .. : . . .
NOTICE Of NON..COMP~NCE .
Dear Sirs:
As you kn~w, .Land{pi:cf .• ryef Tenant · are pu~nfW fleg~#a~~ a propased Third ~ridment .to
Le~~~. which .Is eoh~duled 1P be .pr:esented to the M~y~t,lnd cny Coromlaslon at.n&.AJ>rtl t?t"
m~tL':ISJ ·, .Sin91, fhro~~ho~ .the .. cou11e .Of :n~gtl#atlo~,s ,~hJch .. h~ve . 1noluded :Virli?IJI
praaeJ:i.t~.ons :before Jhe . CffY.a .fJna.nce ~nd. Cltyw~e . J:'tpJeota ·QQrmnlttee ,~o~. moa,. recently,
con.fdetatlon by the ~ltv p~mmJ~~I~n of the proposed ~nt ~bate.ment. and defe~l ~oO&~~Je. at
the :March 13, 2013 .Otty -commission .meetlllJ}, the .oJty CorrimJsatoo has ,bl)en clear and
conila1f3ril, thit, ·.~.e ,~e _{rc)h1 t.h~ fiau~s. be~Qg ~eg~~atea,· #1~. r,na~ rll~~~ .b.e. ofu.erWJae. ~ g~d atan.~/~_g ~.nd .... ~,.~ trC?m. ;d~fa~H~ ~~Jtl~ p~~ . .P~'.1$Ions .tJ.f th' .Lea~~ (n~l ~t JJ~~e 1n :the
negotratlo.fl.~)! :A~~ngly, In PJJ.P-~Iol). ~~ pre~~.nt~flon Of f/1,8 ,Thl~ Al!lenament jf 1he April
City ®m'"-rs,fgh . m~tlog ,·ifue. :ctty A.cfmlnJs.tra~o-n ~ h~a :be~n reVIewing the rematnlng 'eaQe
terma to .e.nsute that Te~lif ·tias been eompfylng wltl) eame. · . . . .. . .. ·:. : . ·
.. • 0 • ; • , e, • •• •. ~ , ~ , • •• •.".'< 0 , 0 ., ,, ,, , 0 • : • , • • , • , •• , ,
To thJ• ·~~~; -~e :pu.,P.~~:Q~-~ii Nofl ce 'fat~ acMse.you ~ ~~ln .. com;_l(an~la~.~.U58
relaled to the af)ove-refe"'-nced Wprk Letter Which ~UJre your lnm1edrate -.ue~on .. 111 follows:
1. Artlol~ ·.1, ·~~Ill/~~~·~ Th~ cHy ~a ~ ~6 .riJoai-d bf Ten~nt'e .~cion.d deposit Into iM 'r~mmt
ConBttj~OtiQn F&.Jnd, l.n the , i'"'ourit o(fBOQ,QOO. This amount ahouid ,have ~n if.e.J)o i ~dpo pr
before: 45. tlfi.YB a1t~t A.l,fgust. 29, ~011 {th~ £f(eotlv13 Q~te Of ~e Work. L~tter). The EacrowAgent
was t o .have prbvlded ,the qrty With · V;Htten: nofi~ ifter reqelpt of iu6h J)l!yment.. S.~sed on the
statement ~pefy~d trOm .the .~aprOIN ~ent, ~at~d .f.1aroh 1.2, ~013, and t~ttache~ ~~ {:xhlb~ W
heretp, .ft .appears .·t~e :lrjlfl~ ..• ~9.0.~P .1th~ 1Jr$t .half o.f th& Tenant Coh~truotlon Fund) was
depQsfted lrito th~ :renant bonatru.otlon Funtf (he~Jinafter TCF) onJ~ept 19, 2.011. Howe_ver, the
orily '6thet 'daposlt ma~e 1nto the TCF .ocbUrred on fej)ruary 7, ~012 , In the amount of
$150i197, leaving a balance due of$349,203. . ...
25
,.
Amlr Slln Zion
Penn 11, I.LO
Maroh 26~ 2013
PtllfJ I of 4
{ (
· At:tlon Required: lllllthln 1evsn (7) days of the elate oHhla-Noffce, Tenant must provide City
wlth proal of payment (and depoaJt wJfh Escrow Agent) of the 11malnins balance dut Into the
TCF. Fanure to do •o conafltutes a defauK under the Worl< Letter and. conaequently, the Llaae.
2. ArUcle t, 89Ction 2. .. The TCF was expreasry Intended only to pay actual "Hard Casta,. of
Tenant's consftuctlon work. No portion of the TCF was to be used to. fund 'Soft Costs,• ••
eame are dsffned In Arllcfe f, Seeflon 2, p&Qe 2 of.lha Work Letter. Baaed on our 18Yfew of
ExhJbft •Atihell are two (2) dfsburuments that were not approved by the CHy that were used
to pay for ~ms epeclfie~~lly deffned as Soft Costa u follows:
Tsble1
D1ta . CkNo P1vee Amount · Memo
08120112 ,687 · CHV Of Miami Beach Sldo Deot 12222 92 Permit Fees
08120/12 1S68 Cltv. of Miami Beach 'Bida DeDt .. f4BB04.43 · ConourtenrN Feee
Total 80827.15 .
· ..
Action ,.,u/red: In iQCD.rdance YAth.ArtJcfe .r. ParagraP.h .2, on page 2 of the Work .Let.fer, 'All
Soft OoitJ ahall ,ba paid .J.B 1nd When _due ,(om .Tenaf)l'.a ~n funds other. than the Tenant
Conafruollon Fund. • ·Aeixtrdlngfy, the aforeafa,ed Soft Coats, In the a~ount of $8Q,S27 J5, must
be replaosd In f~e TCF. . _. . . .
. . .
3. .Based _on the CHy's recan(:lllat.{o~ of the TCF, whfch ~ncllfitlon '-attached aa Exhlb~ •s"
hereto, the .f91Jowtng <flsarepanelei ~re no~e~: . . . . . : . . .
. . . .. . •, ........ •
(f) As _¢ M.ay_e. ~91~, th.e ~lty -~Qe«s '~e re:CS'Ipt of ~q~~·t~ f~r .payment,.(l.e~.,ln ~.e ftlnn cr o,.w ):iegu_e~te ~pptove~ .b.Y ~ Cljy),_'tp,.llnp S7~3J~6B .. -'Ho~r; t~e TCF,~tem~nt ~t
•A•) .-OJ11Y .~fleets d(sburt~e~etlta/p_a¥'Y'~~ .rtl~de by r,nant ~fal/ng --~50,?97, tor 1 -net
dlffe~n.'!f' .. of . ..$7~~_.489 •. Jhe -~lffe~n.~. appe#lrs ,to _Jle .In three (S) Qra~ Requea~-that YN.e
appt:qv.bd_:bY .~~tty, but ~re never cfi.~~UJ'!ed f1:Q111 _f!la .TG~, .~fall~g _$1a3 ,t9S.tW land as
no~_g Jn 'fa~'~ ·~ J~~~~; .~upled .wtth ~~ two .t4n;aLit~~ .p~ytl)en~. ·rn ~e . ilti_ount ~
$60,827.M, ·re.f1renced In tfible 1 o(thfs Notice. · .-· · ·
rsbls·2
·= • . . ~ . '. : :. . : . . .• \· . .
D8te ·, .Payee Anioum Memo
10/27/11 .SkV Sulldera 8800.00 Labor & materials
12114/11 ·Halloran Construction 26:848.00 Labor & materials
'01124/12 Halloran Construction . 100648.84 Labor & mstelials
Total · 133.188.'84 . . ... . .
(II) . f'~I'BLtint _to th~ CIJY'tp "conciliation _In ·~lbJt •a,• l!lnd s.ubJecl to Tenant'I[S compliance with
Actl~o. tteme 1 ~md ~ b,erttof," the :roF .8hoi1Jcf rJfleat a b$lancie of .. $278.783, pending Teninfe
aubmfasfon.of any a.ddltJ.onal Draw ~equests to_ be approved ~Y the City. .
Addltlp_nat;y:·:~~ eh.outd: ,.r.~o ~ a~~~-i.~.~t-s~~~~n ~.2 -(n) of the·l.e~a~ ~ree~en' by ~~d
betweell fl)e .ClfY ofMlar:nl BeaCh, the Miami Beac~ RecteveiQPITI&ntAgency and PEmn 17, t,LC,
dated ·8&ptsmb&r 16, 2011· (the _ ... Lease~), epeclfloally requires 1hat In no event .shell ~e
Construction DeposH .lnto the TOF .be ·reduced to less than $50,000, until such time as the
Tenant's work has been substantially completed, as determ ined by the landlord, In Its sole and
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reaaon~ble discretion; and, lhall. only be refeased up_on laauance of a flnal _ .Certftlcats . of
Occupancy (CO), with proof that all pennlts have bean closed, together wJth final Uen waivers
and .~ntracfor's 'fflclavtt nnectlns that . au oontractor'e, aub-contractors, laborera and
materfalmeri .~ been pa_ld In fUJI. ·
Action Requt.mi.· Tenant a,d t;actOw Agent ahallprovfde written clarlffcatlon, YAtt!Jn &even (7)
daya of.the date of 1flla Notice, as to the dlscrepanclu between the TCF ltatemant (Exhibit •A•)
and the .crty'a raCQnclllatfon Exhibit ~S~); such clarltlcaUon, conflr.mlog that the aforeatated
balances re~n}.~.f!te TC~. . · :
"· v~i:kJ .~ ... :~eotJen .. a ... ~. :J~nani . .th~ll .. ~ufr.e.lta .Contri~or .to .. provfd~ u~cond!IJOnal
perf.~~~ J.~Q p~~an~ bOnds. covering the .t.otal . vai!Ja CJf .renaru·~ ·work ll!aued by a '"'ty aooept~~bre :IP ·4ana1Qil:f •.. ,~s,fd .bo~ds .ahaR .,.,e Jas~ed. for ~ph •ubco.ntra$r, c;ontraotor .. a
m~tct"-lm•#tumlshfnQ rn)ite~al pr 'jjrbVIdl,g libor.or le'~s to'the.P{em~• and ahall (I) ~.me
urydlo(d •• ~in .• d9ftlonal ~}lljgee, .~J) 'be .In )n ~o~t ln form -~ .cODte~ and llaiJ!Cf by
auretlea, ~P•f•!=fC?itlo l.andiP~ ~nd .(IJI} b8 Jn .compflanca Wtth JPphcable.JaW.. .. · ·
At:iion ~~~;~~; :~;e ~~~:~~~n.~~~~e·, ~~~~~~~. m ~ ~~ ~~ ¢ttua .Notlce, C!Opl&a
of any in~.afl, perfoonance Jliif payment.bohds •s requJred.. . . · . · . . · .· ·· ......... " ·:· ... :' .: . ·. . . . . .. .. . . . . . . :. .. . . :'. . . '
s. To date, .fhe .C~y .has raJvid fpnnal .n.Dtlftca:tloJ'I of two (2) clalm.notJoea, as Well as • Notloe
of Lfen,·for non.paymeht of ~otic l!ln.~/or m~Herla/s .related to 'l:enant 'a Jmpi'owinents .aa notad Jn
Table '3 belqw: . : · . -.. · · . . . · · .. · , ·. · · . . . . · · · · ·
Tsble ~ <:· .. :· ... ·. ~-· ·.: ·,: .' ... ·. ·. . .·.' · ... · · .. : . .-..
D•te · ·· Contr•ctor/SuppUer Amount Comepondence
10127/11 CO~r ·::: · ·:· ~ 8,001:92 · . Notice of -Non-Pavmant
,2114111 ·· -MDrvwall ~s 927.00 'Notloe of Non-Payment
01124/12 •, '• MP·Fireatop Col')) . I 7 900.00 NoUoe Of Lien
'• .. .. .... . .. . . .. . . . Ariji~ W.ii~:,;~j~; ~;,notiai :Qi ~ji~'n(ior ,;;bif, ~ ~r.lia'(~ j,n .~~i~i .d ·
T~Nint '~ ,:wo.~ :JiM.I! ,~e -~~a~~~. It ·np~ ~Q.J~Ve#!.·.•.atl~&d or ~h)l~~ f~ .. ~9~d. ~n ~rit of ~~~1t. p~~.er ~" .WP..~ .. ~~r_.*t)d .1hf:! ~~~ ~~men~. ~~JQgty, ~&J\BW1l. (11Uat pro~~ to ~e.~rty,.:W!t~~ven 17) ~aye ~t :the .~ale P{~IP .N,o«Qe. ~o¢utn~~o'l) Df .payinetlt.or •r
toim Of -~~r.~~on -~f ~ ·~la~CiJ.np· til~.ma ·an~~tal~J~.t~b/~ ~ ~~ye :·· : ·:. ·· ·: ·. · · .· · ... · · · ·
Ag~'f~~ :~1~'t~~dj~~·~i:4~~~~ l~ v%~ ~~i~~kt ~~~·~~~ticS~. j .hd. pre~~~~~
A.Pf{l) ~rJhe ~"J:hl~ ~~nqrpe!lt ;to.. the .Lease, I {again) .i~Phll&lze ,.~~t. ~~ City .PcSmmlaalon'e .
ftr) .• J ,~h~~~ory ,._I;I~:~PPJ:OY._iJ .~.~~.T~Ir'Q .. Ari1.~~'TI~tOt,.wfl!~ Wit ~tetlicf .to .pr~~~t .t .~
APr11 .i!.:~P13. C.JfY Qorn£We.aiP.~·m.~~l{1P ~·,p~dl~t,d !JP.O~ lne C9r.dJtJ~ri tfl&t TpJ:Jant, ·~ronta fal~~re .1~ .))ay reh.t )0 Jh~ ~·~·~uryta ~~rre,tly 'ft!guli:etf..~h~er :"~ . .l.:E!a~e, 1$. m gobtla~enCilnQ and free .f~om ~ef,_ti~. wit~ re~pe¢. w. otber .L~aaa proyl~lons ~fnolu.d!og,:W}thout. IImlta~lon, 'the tertna
and con.dlt/~~~ qf the)Vqtk l-etter, W}lr~ (s.ln~rpor'l~d as .art .e;~!b~ to the ~ease}. .. . ·· .
:· ·~· • : ••• : 0 •• ••• : • .-:· •• ·.::; .: ••• •• • •• • '• • ~· :· ...... :· • •• • .. :-. : •• • ,•. : • • .: • •• • • • : • • •••
It Is :lh.~(ore )~ratlye _'tnal .yo4 ".pi:ofripily p~VJ.de .the city ~~ .~ Anfoitn~tlon !'f)qU8Bted
he~JnJ ·1nolu.'~nll ,•nY·. ~.Lire .tri~a~~:~"s required by 'Jhe· Cn.Y, eo that . we :may a~vlae 1~~ .t .lty
Com.mJ•alon {when :ptesentfng the Tlllrd AmendmE!nl} that the :renant Is complying With the
teima Of the W,ork L~tter. · Aoeor~.ingly1 pl~ase resJ)9n~ to the City'~ ~~~o" ~equlrecr. t.tams ; as. ·
•: : • • • • \ •,~ • •, • • : • • • • ' • t ' • \ .. I • • •
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Alfllr Bin Zion
PflnnfT.U.C
Msrch 28, 2013
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eet forth hen3Jn, by no lafer than seven (7) daye from the date of-1hl8 Notloe, or ·by April~ 2013.
Failure to do 10 may result In fhs Tenant bern,g placed In default under fha Wort Letter and lhe
L.eaae.
Pleaae govem you11elves acoordln,;ly.
srncerery.
~t>P~
Anna Parekh
Director
AP:KOS
AUI!Ichmenfl
Cc: Kathie G. Blookl, Interim CHy Man19er
Max Sklar, Acting Aaalatant City Manager
Raul AQuila , Chief Deputy City Attorney
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Fort LauciMiaft Ofa
240Q N Commwoe flkwr U.802 .
w.-.rt. asS26
Jtlb/A.~ ~.cam
MITRANI RYNOR
ADAMSKY TOLAND
ATTORNEYS
.Apdl3,20J3
Jumi :Panih, J>.trecitor . .
RJiW 1. ~-Oh!Ot~ City Atttmlcy
1700~ Ceftt«Drlvo PourUi PloOt . . . .
Mlaml BeaCh, Florlda 33139
bl ~~,ju ~I) Hbfi~IIJ AI ,C/11 qf•li•M, JI'IM'Ib,
JJu M/4tnlllld Un~IDpmmil48nq {/tplblfilu DdhtJtlJIII,y
l'fl./l,;,/ ~ tu. LtliuliDIYO IIIII PIM 1.'!, UC (!i"' lnvt!lv!¥ dtl
111/H qf~ '/,61St~fll{lMftil_~,iulf4~D11'1/t1JJ
IIJHitllt#P~~~PIIIrll &ifVWI, 1661 ~.4wm.,
. Mlatlll~ fflpr/411 lPJ-1114) . . ·.4 . . .. '\... . . . . .. .
DearW..~~~·~ .
. .
EXHIBIT 8
"nQ Jetter~ to your~ooOf~dated 1dlrcll26. 201S.
~-~u ·~w, ~~~-~~ bat .--~ wel(ln ~-of~--~ .Mfllion .Dollm ~lateP ~ ibo Tenam ep~~PP.-~ ~o tho~-Wabta to mike~ tCiifsWaDt" · · · · ·· • ~cJbif .~'u ~l ·xua · ·~ ~od -~ =-=~~~to:=.tWJ:;t~~bP ~ adWID)oai~f~t~tn .~:~i!UA_cl.out ·Df ~ ~JaJt~ ~:.~-~ ~~ -~_1tbo )'~_j)Ut f.ato ~ .p.oo, to~ ft ~m I prase ani! jn'ov}do
8D ~lliOJrth. . . . . . ..
Wlth~ fn ~ tlre~~ponda ~ tle •• retat~Jasues • iblliiwa:
.... ,~
. ..., ..
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"? MITRANI RYNOR Ill. ADAMSKY TOLAND
· ATTORNEYS
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$, · .no TCIW1l ~·deposit 1n eeorow u.t, 828.92 by A.prl.t ts, 2013, • u m~atc~ to
tho .~ p]afma ~to in )'OUI' J~. tn the meantfme, tho Touaot hu ~bean
fa ootUaot ,With ·~ clryW&ll oompaw w:l ft Ja wiUini to qroa to 111 ~ lt
~~ tO ~ ~lafnt, to amloably resOlvo thJJ! matter. It lho\J)d be n,oteci that the
Teblrit dfsputea ~ ~. but WJll rei~ them u IOOilu ponlble.
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EXHIBIT c
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J)ti'Oint (~) of the S.ae Rent and OAM for the ~-month perfpd oommenoJng July 18 itlreugh
January 12, 20,4; Md IS) provicflllQ for N·p~nt by IA181t of the one third eeourfty depo1ltlnd
,...,ayment of the Saok..OU. Rent for November and DtOember, 20121111 In ~ooord,noe With Ute
peyment aOhed~ lttaohad 11 Exh.lbK W tlerwto; fUrther HttinQ of. a publlo hlirlnO by 1he otttfor
Aprfl17, 2018, rtgardlng l..e1111'1 propoeal to add en entartaJnment oomponent u • new propoud
UH on the Ltue Premt .. a '(and •• part of l.laeee'a propoul to 'rHrlnd' and re-open the
PrwmiHt~ and •• rtqulred by MOtion 142-882 of the City Code. .
P~I!D AND ADOPT!D 11fJ8 tt't DAY~ IIIMCH, 1011.
flAVOR
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KOB:MS:AP:KOS. . .
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'!'hii/Ntrument PreptJNd By:
Ctty .A.ttomey 'I Office
City cf Mfmnl Bsar:h
1700 CotrVentton Cent.,. Drive
FoiP'th Floor
Miami B1ach. FloridD 33139
GENERAL RELEASE
As conslderatlon for the Mayor and City Commission of the City of Miami Beach, Florida's
adoption of Resolution No. 2013-28167 on March 13, 2013, PENN 17 LLC, a .Florida llm~ed
liability company, for itself and Its officem, directors, shareholders and principals (collectively
•Tenant•), and AMIR BEN ZION, personally and Individually, -by execUtion hereof, hereby fully
and unconditionally release the City of Miami Beach, Florida, and its commissioners,
employees, administrative executives, staff, attorneys, and their respective successors and
assfgns (collectively "City"), from any and all manner of actions, causes of action, contracts,
agreements, covenants, controversies, claims, and demands whatsoever, whether legal or
equitable, known or unknown, fixed or contingent (collectively, the "Claims•), from the beginning
of the world until the ·Effective Date of this Release (as set forth In page 2 hereof), arid relaUng
to that certain retail lease agreement by and between the City of Miami Beach, the Miami Beach
Redevelopment Agency (as *Landlord"), and Tenant, dated September 16, 2011, Involving the
lease of approximately 7,655 square feet of ground retail space at the Pennsylvania Avenue
Garage, 1661 Pennsylvania Avenue, Miami Beach, Florida (the »Premises"), Including, without
limitation, any Claims resuftln9 from the (I) ventilation system, and/or (il) the air conditioning
system on the Premises.
The provisions of this ~elease shall survive any termination or expiration of the Lease.
This Release contains ·the entire agreement between the parties, hereto, and the terms of the
Release are contractual and not a mere recital.
[REMAINDER OF PAGE tNTENTIONALL Y LEFT BLANK]
1
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IN WITNESS WHEREOF, I have hereunto set our hand and seal this ___ _
day of , AD., 2013 ("Effective Date"}.
TENANT:
ATTEST: PENN17.LLC
By: By :_-=---~-----
Secretary General Partner
Prfnt Name Plfnt Name
STATE OF FLORIDA )
)SS:
COUNTY OF MIAMI~DADE )
The foregoing Instrument was acknowledged before me this :; day of
.,.,.........,,....-:-~~· ~013, by as · of Penn 1,, LLC, a
limited liability entity . He/she Is personall y known to me or produced valid Florida driver's
licenses as identification .
Name: _________ _
(Print Name)
Notary Public-.State of Florida
My Commission Expires: ___ _
2
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ATTEST:
By: _________ _
AMIR BEN ZION
By:._-:--"!"""'=---::::------
Arnir Ben Zion
Print Name Print Name
STATE OF FLORIDA )
)SS:
COUNTY OF MIAMI·DADE }
The .foregoing Instrument was acknowledged before me this day of
=.-......---.-.-..• 2013, by Amlr Ben Zion. He/she Ia personally known to me or produced valid Florida driver's licenses as Identification.
Name:~~~~-----
(Print Name}
Notary Public-State of Florida
My Commission Expires:. ___ _
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Oamlen, Elizabeth
From:
Sent:
To:
Cc:
Subject :
Anna,
Lorbe r, Rich ard
Thursday, March 14, 2013 7:10'PM
Parekh, Anna
· Aguila, Ra ul ; Gomez, Jorge
RE : Penn 17 • Cofl ditlo ns
As we discussed eartier, here are some conditions :
• A double door vestibule shall be created and maintained at the main entrance of the establishment.
• The ground floor windows facing Pennsylvania Avenue shall be sufficiently transparent to afford views
of the interior of. the facHity. . . · · · · ·
• The .applicant. shall be responsibl~ for malr:tt~ln l n.Q the .areas adjacent to t.he fapllity, suc.h as the
sidewalk and th~ areas of the street adja9~nt to the property. When sweeping the area In front of the
establishment' thl;l penionnel doirg the ~weeping sha ll en.sure that they ~o n.ot merely pu~h the refuse
In front of another bull~ll)g , b.ut pick up all trash and dispose of It ~pproprl~lely. . .. . . . . . .·
• In the ev.ent there is queuing of people to gain ~ntrance to the est~blishment , stanchions shall deli neate
t he .area tQ atlow for' the tree--flow of pedestrians. Security staff shall mon itor the crowds to ensure that
they do not inter!ere with ~.free-flow of pedestrians on the pub lic sidewa lk. ·
• Street flyers and handouts sha.n not be .p.erml~ed , ln.olud ing ~andbllls from third-p~rty promotions .
• All 'wet T -ehlrt , '.' "thong" or "bikini" •vents shall be proh lMed,.
,.. .. . ... . ..
• Security staff sha!l ta~e measures to strictly enforce patron ~ge ~strlctlons l.n the City Code at all times .
• •• 0 . ·: • ,• • ' • 0 • • • 0 •
From: Parekh, Anna . · . ·: · ·
Sent ~ 'Thur:s:d~v, M~~f11~~ 20~3 .3:4~ ~M
To: :Lpr~rf. ~lch;;trcl . .. :. · , · . . . '.
Cc:.Agulla1 Raul; ;Bpn<;le, Kent ·.. ·. . .
SubjeCt: ,Fw: ·Penn 17 -No~ce Publ.lc .Hea111')g!doc . • . · ·. · .. , . . . .. . -. .
' 0 • ' • : •• • • • ,· •• • • • • •
Richard, . :
Are vou OK with this propos~d language?
Anna
· . . '· ..
Fropn :. Bonde, Kent
Sent: .Th~rsday, March l4, ~013 03:36 PM.
To : .Ag.ull~ Raul ; .Pare~, Anna · · . .
Subject: Penn 1.7-Notice Public Hear lng .doc . . ·-· . . . · ,' .
Raul, Anna
. . . ;..:
•• : 0 ••
·. . . : ...
. :
Have drafted the att.ached ·Public Hearl.ns notice. re Penn 17's .prop'osed Change of Use for the e~tertalnm~nt
component. Please advise of any changes, before forward.ing t~ the City Clerk ..
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Parekh Anna
From:
Sent:
To:
Subject:
Attachments:
Anna,
Scott Levine [sslevine@msn.com]
Tuesday, May 14,2013 11:49 AM
Parekh, Anna
Penn 17/ Cooper Avenue Letter of Intent
Scott Levine. vet; Penn 17 Cooper Ave Executed Letter of Intent. pdf
Sorry for the delay, I was out of my office this morning. I would a like few minutes with you this afternoon, if
possible. Additionally, one of the principals of OBK Project, LlC, owns and operates 12 restaurants already.
Please call me on my cell (954) 709-2583 after you receive this email.
Thank you,
SCOTTS. LEVINE, ESQ.
SCOTTS. LEVINE, P.A.
1555 North Park Drive, Suite 102
Weston, Florida 33326
Telephone: (954) 616-1132
Facsimile: (866) 703-5508
The Information in this e-mail is confidential and may also be attorney-client privileged. The information is
intended
only for the use of the Individual or entity to whom it Is addressed. If you are not the intended recipient, or the
agent
or employee responsible for delivering it to the Intended recipient, you are hereby notified that any use,
dissemination,
distribution or copying of this communication Is strictly prohibited. If you have received this e-mail In error,
please notify
my office immediately by e~mail SSievine@msn.com. Thank You.
1
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UI'NDINti I.F.TI'F:R Of"l ~Tt:~T
l.udl\'ll liii,SOCI!tl~:m.:n: /
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th~ l\•mtun}'. t'X I:~JI' 1111 ~op~Xitk,1!1 y ~tl\)111\ utillt! ~fi,,h,w tr:m~ru:!icm dt~cunl~l'lt~.
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lm!Mdt<tlll bt\-n~;h ul' thl\1 At!r•:,~•~m. Ll\( ~l'll~:• :o~llall bt! 1\li.\Uir~o-d tu 111\llll."<,i:ltel~ n:p11y 11~ Note
In rull 111 Ill\.' R"~·ct. ttu,l 11~ Hu_,~·r ,haJI I'IC' ~nlitlrd 111 311 ~ht:ilk\1,• Nfl),>Jk~ ;\1 lnw :tnLI 111
~quit~. 1:01' t ~ a\·LJill11tll.'l: n'f ~touht. in the \!~'l!lll ll ~\l lh..:: 1 r.ttb,~~;li\ln .Jo~ .. lllll ul~~~ fllr a~}
~l~~~~~~ '' la:t~'C:\'Io'l', 11~~..: :\!,)!(' ~:1 11 h 1! imm;:di,,td!r ;)C..:e l~r<~i<:d an. I 1'14~o:nc .!111.' :m.J ll;t.)\~L~I r 111
1il1i.
... , ...... ,
41
l. l1t,'-l"l.:•.in~ (,.'t•Wt\a'l''· A• !>I>Dtl a.• ~,N,• th••t~:nr\i .. ') o~ ill u:.c !hl!lr h.."" ~rf.!ll~ to obtain nil
11\'C"~s'lur)· 1hini·p~n~ .. nJ .lt~~·.\'fllll\.:ftl~o:~\n~nl' lm..-h.Oitlt~ Jll c~:rtitlt~~o. p.:•n•i" <tllil.!ppmvotl¥
t1.'\1Uilu.J In \:llllll~~li'm "itb till: c>j)l.•mti~nuflhc C1>mp.1n~ ;)IIIJ 11> ... ~ul.: ,,fit~ SI.Oitl'-' h~f\tuu~r}.
The ll\\lf~"' t1f tM i{csmunant. includin~ ttl~ :oi..:ll~t. ~h"ll contlouc 1~ upctut~ 1~ Comp:~~n~ '$
h\IMn~·~ ill :1 ll'lilllncf (t11M•II•'111 l~ilh p~l f"ll'>'tlh'l' "•'hH-'1.'1' 1\tr,:--.\;n.-nf lht' :\.1'11-'LHII~""alt IllY.! 1hC
\'tliNIImllnli,tA ut' lh.: Tr;m-::~>~:linn. 1"h"' Piltll~~ apll.: \<) llf"tP.'Ir~. 1'\'t;i~li.•h: and c~e<:ul~ "
ft1.m'lb\or.•h•l• ll\ttch:lr;c m:a 'I''" af,I"\."Cmrot. \\hld1 \\ill ·~n,-cl 1ht tffltl-. wt runh in lhi~
A~"CI»CI'It and wtll c:unruir~ cii~IComn~· ll.'PI\"~rUli'lliml~. w.vrt~t•ltl'~. euwmtni.S .1nll lnd~'llmili~ ....
S.. kOJ)ditlun:;. th\1 f!t~}cf Dnd lnl!' ~~:lll.'r \\1ll twlllc "\\11;-.,h·d t~t ~o"\~>~IMamm;~te the pnf\'luN: '"''~
th~ li,Sinv.inp ,•onditll.ln~ ~'\'1l1~nt hov<! h~-n m~:-1 111 \~:tivt\i In wn hn~l ~ 1~ Ru~ll'f prh.,. lui\J\'
n.'lli•'~ D.tt<'·
a. J'l\c 1'\~y~r >hitl' l~ -.at•~1i(:d w;th lh\.' n:"'ll'" afits du<-dthgun..:..: r~\·i~v.,
b. "111.: ScUct :~oh:J lli!U'"'' rtce-h·cd ~II '~tl i lietliCli. f'\llllllb .m i.J ufljl mv:IJ~ thi1f ;m.• F\'tJnir~:~~!
111 ~"''"~tifln wuh II~ t~ll ~-~-~ cmnendup uf lht: Shiii"C3-ami the tllJ~:r:.tlnn {It' t~
(.",\1\'lf)an~ 's ~11"'-1~~
... T h~: p,m\~'!( •hill! b.'I"'O: ~Uf"t'rl ... \nue h!rm 11!'.4~ r"'m tl~ llllllilo~ of I~ hlri lclin~ ht
\\·ltit•h •h~ Cutn~MI'l.f" htr ... iiiL"'!•S is up~·nu"''· wilb 'Ill p.tymt:ltll.. ta~cs .md t\lh~>J
IIU\0\n'll~ f111i) tmid and up ll' ,lrfl\:. A IOOI!LC:n-n l.:tt...c .::-.~'Cuted b} tit~ "'milord. wi'b
l'l:l~tnCOt' nr lL1 IJ1111:,
.t. l"hc Sl!tk!r ~1\rlll hn1 ~ tmnpt~t~·l~ ~ut,•\1. Qltd ol\lah~,l tfkiiM.!ll r ol<~lln~ tu tht• l:.l\~M,il~
t'l}· th~· '1Uttlt<IJ.1()r. Wnll't:'"'.C Rirk. uruf .v•y t>l h•'t' uu1s1Mldm~ dainh, <lntQil!ll.s M
1,'3U~e!o of a<LiL\1\\ t(~ '~ hich ~~1c !S~Ih'"f "h"ll !'It ~pon~ihlc. ;trn! the Sdkr )hull
pf\Witk \Hitt~n [)rtluf '" th~· lht)~f Ill' ~.:ilk•n~nl UJIII ~~~~·4lM:~. 'Ilk-UU)t'l' l&mt I\$
l'i:P"·"~"""i'~s ~~<•11 "-"11\llmin~o'd m p..'n11:i~,t.: iu1111~ •~t t-h ~uh:nt~:tlh "'"ld rclell$~.
~. J\llt•ll~r m;,tcrl;d thu·d t'-~rt} ..t.:ht$ ot'lh~ <."m11poa1y •h!:llll\\' .:t11n~r1tdy rl•plliil t.y the
S~ll~'f. •n~lndi1lr, \\ilht'llll limlt..1~tLtn. llllll\tllllf M\'~ I<> Tt'tll n-;1111¢ a~n!s. brul.\!r'!,
-uptlietJ. lllihl> p1uvill:~. ):0\"enm•~·nt.,'ttlmtillc~ cmd ~l}" och~·r J'l~o:t!lOII O\\Lod 111L•n~~·
ot ha\•tnt 11 cl<1i m o~o. iGUt che (.'l.ll'l'lf'a")'.
t: The Sclkr ,Jt;t)) rlf<)l'i.:le Chl· l!u ~''' ;j (&Mt l)lcl~ ,)Jlcl ~·~lnlJ>Nh ~·n:~h·c Jist (\r i\ll ur !II~
c.·um•~''n:'~ :~~<-<·•~ U1 1 ~\~lh~., "hh th l· m:uhln. t\:Ll~"-"!·t.:J ifl '"'~ ct ,,. •lili J~n~:c 11~1
dl:~i .. ·cm tr~ thl.' U n~cr Hl ciw S.:ll~•
il· 1\U i1ti\'LI.:\:Lu:l l ~~n) ll'\\lt\.'"1.1 h~ 1bt t omp nn~ ~~.;Ill ren1<1•11 tl\\u~d h, t~
l'cNHfTiiU~. INk~'int lltr l l :ul!>d~liv•l. '\n~· i ntc:ll~tual ~trq~rty ~m~Ctl imJh·id1111»}'
42
b) 111.: ~dh:t' ~h11ll b'! tr;~n.,f,•rnct It\ the 1\u~·cr on ll.'fm"> mwJ ''''"tilic•t"-:~A:~'Cilt:111lc lt'
ll~llU~\11'.
n. ! ollo"iu, lla· "":l."ttNir.IJiinlt (I( IP~ Tr~rn C4C1lM. the f:t>mplm} lolr:.ll CMilnuc 10 ()\\·n
ill I rt~hl. hi I-: :ul<i im¢'f~ltn 'mell e• 111 ~· 1{\:.,,.'lul'llnt.
i. Tllc nu~ .... r !1h:..11 :~ooillll II >~o'C\II'il~ ;wt:.,, pi~\Jae: ~rO:tiMI'Il. f.'l~ctltml: ht th~ Buy~:r
h\\'f'lfl t'k'~~• <~C~·ol of hi ,; n~rnl~"hip tnt~r~t1ulh~: (<.!mf(m) • ....-hich ~har~'l ~ht&ll
tit I n:v ar'ld ~:kar of ,:~II lh.>eo•o •11 nf t.,IC\11\lbt;ti'IO:~.,. nn '" t>.·r~•t~: tiN <.'!vsin~ J)u~o.~. in
(l~r t,t 1"0\\ il~ I~ ~U~l."tWIIR I~I)U;,IC r.cc\trlty unJ~:r IJ'It' ~!I''-'·
j. 1111:' r;Jj'lfL'-" \ll<tl! L'Sl~hliJh il'lt (~ICI'II~\ 111 D "MI.:! b~k " frurn lht' l~lfCI\olsl: ?ric.: IU
· ~:cl\\!f ll;~bititics N~f~'i1 ,,, the <'omv>~n~ ·~ hw.i:•.:~) thn.c may t'l\1~1 ~~ c-t lhc Clu~ina
lht!.'. n• tb.: nr.trc:~atc: oatnuunt ur S I :lO.COO . S\lt:h 1nMMI ~hall be hl!ld h> th~:
Du:-c-,·~ ''"'''...:I. !ltt}'~ k hml'ft'lk. P.A .. ~ ;\ 1)\'tlllll ns' nill~~ r'IQ} d:t~s lnU~t\\in~
(ht' c 'ln~i·~· Da~ in IW'~kt lfl rullld ~ll}" •. ll~hJl'l..'d (ll111'>11i•.l:\(l~cd liablliltt'S r(ll wh:eh ~~
u,.~~r m:~}· ~ l~hl fl:.,l'lln!lb-1c-.
k . On lht.> CIMing 1)~1~. till.' Stllcr ill~ II dl:l~\·..:r li.' tltc Ru~·cr thc ~)0\1~ f~c:: 3nd d<:Otor oC
Ill: I icns. 1!'1\(Jllll l'lnar4-<v.\ 1\1 t'lher l l:~bi h u~~..
I. 1'h.: Sdl~r ~hall prtwitl~ IIW Uu~·o!r ''ith thr (IM<~t' lil:~t tho: <.'ity .~1'11.11..,m i H~::ra.:b hll&
:t~N ...... I let PIIY llw <'11111lUm ~•I' S:!lS.OOO uil\~clf~ Ia lt!l ~llii.'Clt'rl I!Mltll~tor (m· th~
~~·l,~:~.tt~mu fth~ ,.;,..,:,,ndhi,m•nt'. ··~'L~o:mtu 111<: ru,,rol \ll•' t't!!~:tp..n~ ·~ t'lo.lllcltnr~
ll ('c~tllpliQIUC b~ th~ S,•ll~l' Will\ <ill ~f its ttl~it~"ian~ undct lhi> ''l~f~-.!R'rCI\1 :lnU the
NN~.
I'· 1 h~: :i~."lh:r 'h:UI ~ dw f'und'i r.:n~"ll:ll b) th~ N,,." •n unl~ au ~·ul t d~. llll",tti1>t
uA LI othef li.:!!hilit i.!., uml fu r nl) oth e-r n:a<~ull l'lw ~Jh:r sha.lll.l.'.-tl thr Au>~t apprl~t:d
t•l un~ ,neh .,etllcnwnf ~ ;mtJ :ur fl.!'jl:\) IIIQIUS M d~b!~ 1-'uihu\1 ":-tl\~ Bu~·~·r to c:11m1'1~
~~ ith Jllh o:uwmm1 .1 • .-11 ~ gmtlll•l~ (c)t ;,~:(di:r.ath'C :tt\ :lflln411ll" \m.td und Qr th~ h~~~.
t~·h'l.:ln~in•~ ll'.l lhl: .;tl-~..:'1'-~uhjt.."':( ''' 1h.;' ~·.:ur1t~ ,\J.UI:I."11Mit :n.._t l\'fmimLtinp, the
T4nnllll,1iM.
{t, l)!!!j L?iJi.\;~.ll:~ 1'l1c S<ll~:r la);t\."1:~ ,,) C"~l':ll•! wilh tl\1: D ~t~t'r'' duto rliLif~1.'3l!t: ii'WCS.tlptiOll or
11~ (."Urtr l1111\) ·-btl">l~"" ."nul 111 t•H\\'itiC tl\< llU)'I."f l\1111 ib ~~~'i.l liV\'" \'ilh prlln\jN i'lnd
43
I~IP\Jll.;"ll\:(' ;'\C(L""~ I•~ \....:y <.:IIIJ1l<1YL'\''I ~\t\;.l 1<1 l'l~'kS. tttlltd~, \:1>1\lfiii:(S Ol~ 4\lh!!r illf-."ll'fll~ti01'1
Jl'1~ainin~ tu lht• <-'<"111\;1.11}.
1. ()~~l!i!l.,t} ~ 1\!u).·C~mPSUii<,)U. '11tc 8ll~et u1l! ~~·Ilk' d11c dils~t:~~~~ inro1rt11.1ti11n S>l~l~ r..,r
I~ ll"r!X'Jt of lh&O U\1~C1~ \fut• d tltj !t:!t~c itWC'Slig.'ltl<ln ot'1l11: C't~mpi111~ '!! "&.hiUCS&.. .:md un )c,~ ulld
\mlil IIIII: JIO~I~~ <:lor1'111tnlllolloe: thl• 'lt :~~t..a~:lillll. th~ Ru}t.:t. il:i >~Oill:~b"', dirr:ctms. oiVit;:t"l'\..
\'IIIJllo))'t:\:S. :Jd\·IS,.T\, ~IIlLI ;l[!~\~ nl...-Au}~r"~ -R~r:t"k'»lgtj'>'~") )oh;tl\ lltWC SOle! a~~,·~.; 10 d~
\11~ dth~·tt.:o:: ins"utn\llh\1tt
&.. (.'('llfu!.\:lllitl!. )n{lll'llla\i()t l. ·1 ~ Bo~·tt \\iU dL...;lu•o: 11~ du~ ddiV~fli.A: infMnaltt111 ,ml) ll"'lhOS&:
'~"l'f~""'Cnlill iW'I nf ch~· Bu~,·r whu tk.'Cd It• ic1Kl\\' •tn:f' tnl.lr1J1ulion ro.r rhe ll111"J)C~ or
I:Ufl~lllllln.:Jiin~ lilt: l'mmlll:tioJt 'llw liu}ef a~fl'\!'i In I~ r($p(tlllUhl,• r." om~· ~~~~~~ Llf thi!-
jlll'rni).TIIJ'h 8 h)< .al'l>· Uf lin• kuz,-cr'~ Jt~rn::.tm~\1\,~. ht tilt: C\'COl ;h.: lJ"n~Q~lfon ~~ IIIli
co1b'U11111\tll!!d. the 11\l)~:t \"'ill f(tun~ '" th~ S\lll\'r nn) m:n.:riul' o.:••nloliniuv du..: .till~~~~
111 1Qnt1;1Li~>r.. or "'"II .. ~til} In llfi 1 iny. th.ll ail ,.u~b tll..tl\'fl;tlq t1r .:O'<ll~iCJ ol ~u.;h tM~cr\alll lt;t\oe
be:.:•• d~t~ytd. 11~ l!tt}o:r "'"' ~~ill rtot till\! an, du.: drh~·~ ittfllnlliUJOIIt•• .:ompttc 1~illt tht
SQl!11r In \he' ~o:~.:m tl!<lt th~ I ""'~'\!:''"" 1 ... t11lL ~~~l'llollllln .. ll~t ThJ:' proYt .. i•m~ of thh p11niJVIloPh R
~ iiiHtf\'i\·•• !It\! 1Cnll•tl:ll ie~n •lfth I~ 1\~''"~ll\. ~.,t ldlll!lll11dlnj1lh~ rNCt,~ln~.lhC S~llcr shalll"
JlC'I'IIllth·,l. "1~.\ll pn .. r nn1h:.:-''' \h,• B11~t:J, 10 JI~'\N\, 114!J.lNi.al~. iltlll ~ttk d~tll~ "ith third paTti~~
prior ll' tl~ C"l,,,int:.
o. t"tllll~•n~· E~U>l''J"'-'~ I Jmil th~ t'cY.NLUIIIlalioo .,r ,,,.: ·rraJl"•JA:Iil\1\. .:>r in 1lll.· ,.,-cl'll 1~ tit~~
j>:ll1 i~~ ~) Nll _-LUil'o\Lll\llliJl~ th~· '£ Hill$11.;11~•1'1.' !It~· Ou:tr WTJl 1111( ).o)j icil Or IV.I:FUit 11\\! cmrlo)~Ct Of
lh~ l" f1111fjllll~·· ~ 'tiiiSIII'II~~.
10. ~~~w~· Ocl\li.Jl, . ..-rom th~ d:ltt h~·Mtr unttlltw Clo<ing U;nc. tlr~ Scll~r wilt tU)I cnt.:-; mtu
~ \tj~I\."CJn.:Mt. ui~C'II,.,h.n. l)r n,:)>l.\llilllic.!n "tth. or ()roJI:illl' ttllorml\1 iotl 1\ .. nr Soeoli~tl, \'1100Ur.l~ •
... ~lt:r1nln (II t:\1n~i~·r :1ft~· lllt}Vir i~·~ or prop.~l~ fr Nn. an~ nthrt corpl•n-rtiM. t1nn t)r utl~r p~n~C>tt
v. i'tlt •~Sr«t tn (u) Jlio! po>!•:~it>h! <ii~po$tli<>n n( Art>' nw~nl'l.!!~hl!) im~NSl~ in Llu:-CtnrlfXIOY or a
ll\ll~rtllll f1t111iull OJ' tho.• ~~~tS ot" too ( 't111tpany. or (h)~~~~ ~111111 .. )." ~uMbillllltmt ill'vOlvinU 1111!
t"UIIIP~o~n}. w111.1h•·r Ll~ w~y ,,t' t~rmct. <:<tu~ulid3tlon. ~11;111.! C:)ol!h:•t~tt·· "" \t(h~r 1'mll'lo.11ltion.
11. Mlic :\nuniJLl\>'i.'m,\~lH • .-\11 ,,~u r~o:o,,,~.., and pub!:.: :~nnounC'I."Ittt.<nl~ ,..-ltllinl' 1o lht:
Tl'.m~~'1Wil ";n ~ 11tf'4'.;d l() ;IIIII rm:-~rnf jt•inll.. ~ lht' s .. •fll.•r itlk! aile llu~~r.
I::. t .. ~. ~uh_ico.:l l•• tl~o~o: pru\ j,j,·n~ ,1f JWa~·.rnr!l ,. l'r ltlio;. At:-C•!•I!n1\'111. ~h pa.tty \'ill rr;t~ o:~U
t•i it•. .::x~n~.~. il~ludin.l,! ;,.,~11l I~"(S. itn;Ju'f.l\1 m ~'>l11~Cit\ltl "ill~ tbc: l'rull\llClit:ln.
I l.ilu!s!!tuifl~itl!.~UF I h..: S..:H~r r~('«~..:nl& :;and ~\:.tr.111t~ rh,,c liw• liu}·~:r well nnf in~ur IU\f llabiHl}'
in .;uts;"..:\IOlt with lhc '\li\Jol111111liU1on or 11t~· Tr.:tllli.Xholllll :ltl!-ltm.U part~· \\ilb "'""n Inc ~Uc:1
or ih . .,~~~~~). h~A'''-' h;t.t~ di-"'!u~s1on~ "'J~acclin@ 111< th1•••"i\i1m c~.-,,,., ~bo~t~~. olt'l4.! ll~o: S..:ll~r t:~lltct't. 111
mtl,mtli~. ~~~tc:ll\1 :111.t lll)ld hJnl1~\ 1~ Uu}o:r. iL' l)llitm. ttiri!Cior:J, :;h"·khr.oWm. 1\•llll!lr!l ond
;~llilklt~ frc•1n :an~ d;tint'l h~· or li#biliul!'< "' ~\1\'h lhtrd r;:ani~. ir.dmlicl~ an~ Jc.-.v,.1l 1~t u1lt~:r
44
\'~rt.·n,., .... incu.l\~d 111 ~:unMcllon W1tb tl!~· .!..:1~nst' or' .:.tH!h clilllll~ Tbc ~0\1/IIllllt<\ '-'<~lltl1"14'U in
tl'i' p;~r~r}!l';lph 12 I\ ill ~r:f\'tl'~ t•lt' C'I."Jt.lnt: Dat" ur tll¢ li:ntlllliiCion or llu,. A~J-cen.1crtt. \\hidtev(r
tw~;ur-. i!:~tlrcr.
1 J . ~l.S(.'(~Iit) lf iiiJ~ 1\:no or JlrO\ i:.i .. •n uf '"" AJ:l·~~,,~·ni 1s i.H .:lUd. i h\:rltl "' uut•JI(Ntc:lbk!
in ;,n~ it:.nsdlci1Ull . "b.:h in\:tlr,hl~. i:l .. ~rl~ \Jr IUl\!l'll~n:~oahilil) ~h;)llrw! i!ff<Xt .1ny ull)l.'f rem 111
r~wl'o'U>ll ,,. ltli,. .'\l}fl~tm•uJ.
I ~. Su~~~~ Jll~l t\~~i~; Tl!illl!M~}' n~an~~· Thll A~l\:''''~llt s.hall I~ llill\llttf. "~n
ulld ~1\:all inun.• I ~ 1tul ~-mfit,,f II~ .P'.Ifli~~ :Ubil 11~it l~(li:(U\'fo: )\JCC.C!I~\Jl~ a111l .W.iJII\~. 'N~ Pill\>'
n1~~ 0\~!>i.,:n lu rltthl' ~t obl11101lio'"' h~rc,~n·ll.'t "iti'IOul thll tll'lc>r wrr~~:n tol\lt:fl, ••~ th\' cltltl.!r
p,,l1t•''·
16. :\Jw:ndnk'ln lllk1.~~!.io.n: Wllntt· 'T hb l\J'1~~mcna O\u, .ml}' b'· umcndt\i. 1rut..1i r"-'\i or
~ppk'1fl-:nt~,t h) ;u\ .-l!~·mr:uL 11\ wrhinl~ ~it::ned ~ \'01tllsx1 r1~ h~·uolc,.
n GtiS!i!.u!IJJ& Ll!\~_;..li;tljnb~t~!l !IJ htril'di<tiu~iwr· t•!' h\Q: Thill.
1011 ·nu,. ''~'$(ilel~nl ~trldl bo~ ~w~·u•~'f.f ~~~ 111111 -wn-t.ul~~:c.l ir\ ~c<~•nlrurc~ \\im ~~
""~n.ulln\\'1 ~1 r thv ~1:1!1~ <~f I 'It "'i''" '"lltr~HII r~ti.,.~~w ru O.:lln llkt ,,, r.:~v. pnti!!:•J'II•"'·
('b} ,\NY I.EG•\l . !\\il1'. AC T&Ol'o: 00 PR<X.'I:t:ntl'\0 t\R~tN<i Otrr Or Ok
IM~r:D lii1UIIi llll); AO~t r.r:.MINI ' OR TilE MI\HI-iRS l'Ol\'l'EM I'L A11 ~1> Jlf.Rl·:BV OR
TUI~~U \' Ml\ 'I Ill'. t "snn.;rm 1N Tilt: f'OUR1'S CW Tit~ S'l ATE 01 · t'l.()!{ll)A I'N
I'.Mil CAS1 . LUl:ATt:n t~ MI/\MI•IM'DI! ~'O!INIY . ll.l>KILM. M\0 E/\!'11 PARTY
litRe VOl . >\IlLY lH:UMH~ TO Tim l\X<.l .. l.ISJ\"1~ J(!IUS()ICTIO,._ 01: SI.;Of ('()t !R IS 1N
ANY ~l;CII Sl.ll. t\<"Trm: Ott l)tton:J:J)INC; CAC"H SliCH P,\JUY IR.Rl!VOC1\ut.Y
Mm liNt'<>NIH'I ltJl'\J\1./.r' WAIVIiS .·\1\Y kiWI! IT MAY It-\ VI! TO A liH,\1 BV JlJRY
IN tmSP!~Cf OF ,\S¥ IHiAl, 1\t'IIO:-.i ARI~l~(~ 0\rl f~F OR IU~L,\Tl~C; TO 'l'll!s
1\GR I~EMI:~l' j )R 'rill~ Mt\ J ·n~JtS. ('C)NTF.!vtl 'b\TF.D lll;REO\'.
Ul. SllfiiUI. ~'*" i1~~1:md111~ nn~·th inl! tu llw .,;(lntr.~r~ ~!l (Qcth h~.'To:i n. S«li•m~ t. ~. ~. 1. 5. 6.
7. fl.. 1). 10. 11. :~. !J 1.1. ~5. l6 at\41 l7 ::.!<...,11 sur~hc th~ '~"m inn:lofl nf thi" Aa~m~l mwlc~t
lflc c.klir•iti'c 1tlii1Sacti01\ t.lu~·uun'flt~.
I\J. ~1\'ll~~.i1•lh. :\ l)\)l;,llrllloi, dt.:llrt~...S io1 th~ Nu\cl l•~ th~· ~.:ll~.,. of' :tny urltir. Ci'll'lln:mu.
nt ~~ Nt\h' '" urt~ <'r 1l~ ,..,,lh.'l'CI\I:Itmn~ • .:o,~n.,tit' or ~~fll"etn.:nl II\ th•~ All~"'''nl :i.hull
''""'iM~ ~" lt!ntl mli~h: l~(;u,lt [;;,~ dc.<ll r'll'o.l i11 lh..-~{lt\1t h~· th~ "Sclkr. :tlld a "".:n1~-t'o1lf tl·H
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45
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46
Parekh, Anna
From:
Sent:
To:
Parekh, Anna
Tuesday, May 14, 2013 1:27PM
'sslevine@msn.com'
Cc:
Subject:
Smith, Jose; Aguila, Raul; Morales, Jimmy; Brooks, Kathie; Torres, Gisela; Amlr Ben-Zion
FW: Penn 17/ Cooper Avenue Letter of Intent
Attachments: Penn 17 Cooper Ave Executed letter of lntent.pdf
Mr. Levine,
Thank you for the attached Binding Letter of Intent (LOI). By copy hereof, I am forwarding your email and the LOI to the
City Attorney's Office for review and advice. In the meantime, as we discussed at great length on the telephone
yesterday and again today, the City must have an opportunity to conduct due diligence prior to consenting to any
change In the tenancy. Since the attached LOI refers to OBK Project, LLC's acquisition of 50% of Penn 17 LlC's leasehold
Interest, 1 will appreciate it if you will send me the following additional Information:
1. What is the proposal for the payment of back rent due to the City? As we discussed, the proposed Amendment
No. 3 has not been approved by the City Commission .
2. Will your client, Roman Cherstovov, who recently became a manager of PENN 17, LLC, remain as a manager of
PENN 17, lLC.?
3. If so, what is Mr. Cherstovov's background In restaurant management?
4. What will Mr. Cherstovov's role be In the tenancy?
5. What Is Eugene Alekseychenko's (manager of OBK Project, LLC, which incorporated on April 21, 2013)
experience In the restaurant business?
6. What is Oleg Elyutin's (manager of OBK Project, LLC) experience in the restaurant business?
7. What Is the Business Plan regarding the proposed operation ofthe leased space?
8. What is the proposed re-opening date?
MIAMI BEACH
Anna Parekh, Director
Oflloe of Real Eelate. Houah'lQ & Community Development
1700 Convention Center Drive, Miami Beacll, Fl33139
Tel: (30&) &73-7260 I Fax: (305) 673-7772
Web aHa: www,mlamlbeast1!.aoy
We are oomm/tted to plt)v/dlng exoellent publlo serv/oe and 88fety to all w/!0 live, wotfr end play In our vibrant, troptoal hletorto oommunlty.
From: Soott Levine Cma!lto;aslevlne®mso.CQ.Dl]
Sent: Tuesday, May 14, 2013 11:49 AM
To: Parekh, Anna
Subject: Penn 17/ Cooper Avenue Letter of Intent
Anna,
Sorry for the delay, I was out of my office this morning. I would a like few minutes with you this afternoon, If
possible. Additionally, one of the principals of OBK Project, LLC, owns and operates 12 restaurants already.
Please call me on my cell (954) 709-2583 after you receive this email.
Thank you,
1
FXHIBIT D -..:: --_ .. 47
LAw OFFICES OF SCOTT LEVINE, P.A.
1555 NORTH PARK DRIVE
SUITE 102
WESTON, FLORIDA 33326
May21, 2013
Anna Parekh, Director
Attorney at Law
Office of Real Estate, Housing & Commm1ity Development
The City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: Penn 17, LLC, Lease Agreement
Dear Ms. Parekh:
TELEPHONE (954)616-1132
FACSIMILE (866) 70&-6506
I apologize for the delay in getting this to you. However, I wanted to be sure that any further
discussions between the City of Miami Beach and Penn 17, LLC, would be fruitful. As I previously
informed you, I represent Roman Cherstovov, who began working with Amir Ben-Zion in April
2012. At the present time, Eugene Alekseychenko and Oleg Elyutin are negotiating to purchase
Amir Ben-Zion's interest in Penn 17, LLC. Together, Mr. Cherstovov, Mr. Elyutin, and Mr.
Alek:seychenko, have more than 20 years of combined experience in restaurant ownership,
management, food purveying and food sales. Moreover, based upon their combined experience and
knowledge in the restaurant industry, Mr. Cherstovov, Mr. Elyutin, and Mr. Alekseychenko believe
they have a business model which will work.
Most important, Mr. Cherstovov, Mr. Elyutin, and Mr. Alekseychenk.o (the "Parties") want to work
from a "clean slate." Therefore, as part of the negotiations with the City of Miami Beach, all monies
owed to Halloran Construction, and or any subcontractors of Halloran construction and or
materialmen which performed work at the Penn 17, LLC, location will be resolved, and any present
liens and accompanying actions will be dismissed. The Parties want to obtain a final CO, so there
are no further issues of this type.
As to the questions you posed concerning Penn 17 ~ LLC, and its leasehold, the answers are set
forth below.
1. What is the proposal for the payment of back rent due to the City?
With regard to payment of the back rent to the City, even though, the third proposed
lease amendment bas not yet been approved by the City Commission, Penn 17, LLC,
wishes to take advantage of this third proposed amendment to the lease. Penn 17,
LLC, stands ready to pay all amom1ts due per the third proposed lease addendum.
FXH,BIT ~=;
48
May21, 2013
Penn 17, LLC, Lease Agreement
Page2
Penn 17, LLC, will pay the City of Miami Beach for the November 2012 and
Dooember 2012 due, which totaled $64 ,791.00, and will repay the security deposit
of$47,844.00. Additionally, since January l, 2013, and per the third proposed lease
addendum, the City has abated $28,158.88 of the total monthly rental amount, Penn
17, LLC, wishes the abatement to stand. At this time, Penn 17, LLC, stands ready
to pay the "abated" rental amount due for May 2013, as well as the $64,791.00, and
$47,844.00 ~set forth above.
2. Will your client, Roman Cberstovov, who recently became a manager of
PENN 17, LLC, remain as a manager of PENN 17, LLC,?
Yes, Roman Cherstvov wilt remain as the managing member of Penn 17, LLC. Once,
the transfer of shares bas been concluded between Amir Ben~Zion and OBK
Project, LLC, theOBKProjectwill be joining Mr. Cherstvovas a managing member
ofPenn 17, LLC.
3. If so, what Is Mr. Cherstovov's background in restaurant management?
Aside from his experience working at Penn 17, LLC, Mr. Cherstvov has a
longstanding career in the food and beverage industry. Mr. Cherstvov earned an
engineering degree from Amur State University in 1996. He later became an
entrepreneur, primarily focusing in the food and beverage industry. From 1996 to
2001, Mr. Cherstvov distributed wholesale foods and beers. From 2007 through
2009, Mr. Cherstvov served as director of operations for Amursky Prostor, a food
and beverage discount retailer. In December of 2009, Mr. Cherstvov co~ founded
Mega~ Trade, a Russian company which handled culinary food production including
baked goods. Additionally, Mega-Trade owns a chain of supermarkets and mini
stores in Russia. Mega-Trade 1s supermarkets aro known for their wide selection of
produce and wines, prepared foods, fresh meats and fish, and decadent desserts.
Among his duties as director of Mega-Trade, Mr. Cherstvov was responsible for the
hiring and firing of department heads, as well as other employees. He was also
responsible for evaluating performance reports, approving, rejecting and or adjusting
inventory and inventory budgets. He repeatedly entered into contracts on behalf of
Mega-Trade, while maintaining favorable relationships with major producers,
suppliers and vendors. He developed marketing and promotion strategies which he
implemented. He reviewed financial projections and developed quarterly
performance goals. Mr. Cberstvov has also partnered with Mr. Blyutin, in several
restamant ventures in Russia.
49
May21, 2013
Penn 17, LLC, Lease Agreement
Page3
4. What wiU Mr. Cherstovov's role be in the tenancy?
Mr. Cherstvov, will be a managing member and the contact person with regard
to the Penn 17, LLC, tenancy.
5. What is Eugene Alekseychenko's (manager of OBK Project, LLC, which
incorporated on April21, 2013) experience in tbe re8taurant business?
Mr. Aekseychenko, has a degree in accounting from Wayne State University. Mr.
Aekseychenko has been an owner and manager of retail estabtishments for the past
10 years. Specifically, for the past 4 years, Mr. Alekseychenko has been working
for SFERA, a food management and dis1ribution company. Among his
responsibilities for SPERA, Mr. Aekseychenk.o oversees Pasturella's Bakery and
Boba Smoothies, both located in Aventura, Florida. Recently, Mr. Alckseychenko
joined with Oleg Elyutin in purchasing the Soprano Cafe and Italian Restaurant,
located at 3393 Sunny Isles Beach Boulevard, Sunny Isles Beach, Florida. Through
his years of experience, Mr. Alekseychenko has developed a working knowledge
of the food service industry, which includes managing employees, conferring and
placing orders with vendors, developing promotional strategies, and
conceptualizing business plans. His degree and experience in accounting, joined
with his knowledge and experience in the food service industry will provide an
excellent basis for a complete and competent review of the operational expenses
of Penn 17, LLC.
6. What is Oleg Elyutin,s (manager of OBK Project, LLC) experience in the
restaurant business?
Oleg Elyutin has been in the restaurant business for more than 12 years. His
company currently owns 13 restaurants and he is experienced in all aspects of
restaurant ownership including the management, management hiring, menu
selection, food purveying services, the hiring of kitchen staff and servers, and all
day-to-day operations of a restaurant. Mr. Blyutin' s knowledge concerning this area
is unparalleled Bach of the restaurants he owns is successful, as he personally
oversees the operation of each of these restaurants. Enclosed is a printout from his
website "r-projects.ru", which lists ownership of some ofhis restaurants. Recently,
Mr. Alekseychenk.o joined with Oleg Elyutin in purchasing the Soprano Cafe and
Italian Restaurant, located at 3393 Sunny Isles Beach Boulevard, Sunny Isles
Beach, Florida.
50
May21, 2013
Penn 17, LLC, Lease Agreement
Page4
7. Wbat Is the Business Plan regarding the proposed operation of the leased
space?
Cooper Avenue will be relaunched under a new name. It will be a completely
different style of restaurant. The specifics of this plan are best <liscussed in person.
If the City of Miami Beach is in agreement with the new direction of the proposed
business. A formal business plan wilt be submitted, and renovations will begin
thereafter.
8. What is the proposed re-opening date?
Penn 17, LLC, would like to reopen tomorrow. However, the proposed reopening
date will occur in conjunction with the relocation of the air~conditioning system to
the roof of the parking garage, and the installation of the new kitchen ventilation
system. Specifically, it will take 6 to 8 weeks to fabricate the approved kitchen
ventilation system, and another 2 weeks to install the same. As such, once approval
for all work has been given by the City of Miami Beach, the members of Penn 17,
LLC, plan to reopen and relaunch the restaurant by September l, 2013, provided
all work has been completed. The Parties are confident that if all work is done in
a timely fashion, including any modifications to the restaurant, a final CO can be
issued by September 1, 2013. As stated above the Parties will settle all debts of
Penn 17, LLC, and do not want City of Miami Beach concerned about the
possibility of any further litigation from any unpaid contractors or subcontractors.
Please call me upon your review of this email, so can schedule a meeting at your office to discuss
these matters in greater detail. 1 can be reached on my cell phone (954) 709-2583.
Very truly yours,
SCOTTS. LEVINE
51
<9 MIAMI BEACH
City of Mloml hach, 1700 Convention Centt!' Drive, Miami Beach, Florida 33139, www.mlomlbeachfl.gov
REAl ESTATE. HOUSING & COMMUNITY DEVELOPMENT
Tel: (305)673·7'193-(305)673-7033
CERTIFIED MAIL RETURN RECEIPT REQUESTED
May 17, 2013
Mr. Amir Ben Zion
Managing Member
Penn 17, LLC
Copy sent via electronic mail to:
amir@fcsny.coro
Benami.shal@gmall.com
jrynor@mitrani.com 1661 Pennsylvania Avenue, Suite 6
Miami Beach, FL 33139
RE : Lease Agreement (the "Lease") between the Clty of Miami Beach, Florlda, the
Miami Beach Redevelopment Agency (hereinafter collectively referred to as
uLandlord'') and Penn 17, LLC ("Tenant"), Involving the lease of approximately
7,655 square feet of ground floor retalf space at the Pennsylvania Avenue Garage,
1661 Pennsylvania Avenue, Miami Beach, Florida ("Premises")
Dear Mr. Ben-Zion:
The City has continuously proceeded in good faith with Penn 17 LLC (Penn 17 or Tenant) In an
attempt to resolve Tenant's ongoing defaults under the Lease, and execute the proposed
Amendment No. 3 to Lease. Unfortunately, we are now at Impasse and, accordingly, the City
hereby provides Tenant with its written notice of the following defaults under the Lease:
1
1. Failure to pay rent for the month of May, In th& amount $30,130.23 (said amount,
inclusive of State sales tax, representing $25,596 in Minimum Rent, and $4534 in
Common Area Maintenance), which was due on May 1, 2013 1;
2. Failure, under Section 3.5 of the lease, to maintain Tenant's business on the Leased
Premises open for business to the public, fully fixtured, stocked, and staffed. The
Leased Premises have been closed for business since December 17, 2012 and, bye-
mail to1he City dated May 15,2013 (see Attachment "A" hereto}, Tenant has indicated
that It has no intention of re-opening within the near future and effectively advised the
City of Its abandonment of the Leased Premises;
3. In violation of Section 5.6 of the Lease, a lien was recorded against the Premises by
A&P Air Conditioning (dated December 12, 2012, and recorded in O.R. Book 28396,
Th&afor&ata1ed rental amount represent& 50% ohhe May rent originally setfortn In Ule L&aae. Th& City Comml&tlon's1!tloptlon of
Resolution No. 2013·28167 recommend&d approval· subject to and contingent upon the City COmmlaeton's subsequent approval
of a propoaed Amendment No. 3 to the Lease -of a 50% rent abatement, from January 13, 2013, to July 12, 2013. Notwith&tandlniJ
the above, we take thle opportunity to remind you that since the City Commlsaron haa not yet finalized Ita approval of Amendment No.
3 to the Lea&&, and haa therefore, not flnallled Ita approval of the more favorable revlaed rent abatement schedule, the City has, to
date, held off on demanding the wrrent total rent due, abaent the City Commission's final approval of Amendment No.3 (and of the
revised rent abatement eehedul&), of $342,07 4.61 (the full amount rent due through May 30, 2013). Notwithstanding the preceding,
the City reserves any and all rights to reclaim the FULL amount of rent due under the Lease.
FXHIRIT F
52
Mr. Amir Ben Zion
May 17,2013
Page 2 of2
Page 3630 of the Public Records of Miami~Dade County, Florida; hereinafter referred to
as the "A&P lien"), in the amount of $73, 693. A&P has also filed suit against the City
(the "A&P Lawsuit"), demanding payment of the aforestated unpaid sum;
4. Despite prior written notice from the City, Tenant has still not provided the City with
evidence that a prior claim by Cors·Air, in the amount of $3001.92 (the "Cors-Air Claim"),
has been paid; and
5. Despite prior written notice from City, and as required under Section 5.2(n) of the Lease,
Tenant (or Tenant's Escrow Agent) has not provided City with evidence that it has
deposited, and/or otherwise maintained, the minimum required $50,000 Construction
Deposit in the Tenant Construction Fund (as such term is defined in the Work Letter and
Escrow Agreement, which was Incorporated into, and made a part of, the Lease}.
In addition to the above referenced defaults, the City received an e-mail on May 14,2013, ofa
proposed "Binding Letter of Intent" purporting to sell Tenant's (and your personal) in1erest in
Penn 17 to OBK Project, LLC (the Buyer). Under Section 6.1 of the Lease, the Tenant shall not
enter Into, consent to, or pennlt any Transfer of the Lease wHhoutthe prior Written consent of the
landlord. The term "Transfern includes the transfer of a controlling interest. Until May 1411\ the
City was neither aware of a proposed Transfer, nor has it consented to any Transfer including,
without limitation, the proposed sale to Buyer. If consummated without the City's prior written
consent, the proposed sale to Buyer shall be deemed an unauthorized Transfer, and therefore
result in a further breach/default of the Lease.
Accordingly, with respect to Item No. 1 of this Notice, pursuant to Sections 9.1 (i) and (li) of the
Lease, Landlord hereby makes demand for payment of past due May rent, In the amount of
$30, 130.23, which rent must be received by Landlord within five(S) days of the data of this
Notice.
With respect to Item Nos. 3 and 4 of the Notice, pursuant to Section 5.6 of the Lease, Tenant
shall discharge the A&P Lien and provide evidence of satisfaction of the Cors-Air Claim, within
fifteen (16) days of this Notice. Additionally, Tenant shall provide Landlord with an Order
dismissing the A&P Lawsuit, with prejudice, within fifteen (15) days ofthe Notice. Failure to
do so within the tlme period specified in this paragraph shall also be deemed a default under
Section 9.1 (iii) of the Lease.
With respect to Item Nos. 2 and 5 of thie Notice, pursuant to Section 9.1 (iii) of the Lease,
Tenant shall remedy the breaches set forth in the afforested Item Nos. 2 and 5 within thirty (30)
days of the date of thla Notice; provided, however, that with regard to the breach set forth in
Item No. 2, if such breach cannot be remedied within thirty (30) days , then Tenant shall
commence to remedy and thereafter proceed diligently to remedy such breach with thirty {30)
days of the date of this Notice.
TENANT'S FAILURE TO CURE THE DEFAULTS SPECIFIED IN ITEM NOS.1-6 OF THIS
NOTICE, WITHIN THE RESPECTIVE TtME PERIODS PROVIDED ABOVE 1 SHALl ENTITLE
LANDLORD TO AVAIL ITSELF OF ANY AND ALL RIGHTS AND REMEDIES UNDER
SECTION 9.2 OF THE LEASE INCLUDING, WITHOUT LIMITATION, CANCELLING THE
LEASE; RE-TAKING POSSESSION OF THE PREMISES (INCLUDING ANY PROPERTY OF
TENANT THEREON); THE ACCELERATION OF RENT DUE AND PAYABLE UNDER THE
. REMAINDER OF THE LEASE TERM; AND THE INITIATION OF LEGAL PROCEEDINGS
AGAINST TENANT TO ENFORCE THE PROVISIONS OF THIS LEASE, INCLUDING THE
RECOVERY OF COSTS AND REASONABLE ATTORNEY•S FEES.
We are commllted to providing &Xee(fent pvbllc service and safely /o all who IIVfJ, v.1)tl;, and play In our Ylb<onl, /top/col, hluotlc community.
53
Mr. Amir Ben Zion
May 17,2013
Page 2 of 2
PLEASE GOVERN YOURSELF ACCORDINGL. Y.
Sincsrely, {j)~
~
Anna Parekh
Director
AP:GNT
Copies to :
Mr. Steven E. McNeff
Registered Agent
Penn 17, LLC
45 N.E. 41 S1reet
Miami, FL 33137
Jeffrey A Rynor, Esq.
Mitrani Rynor Adamsky Toland
301 Arthur Godfrey Rd., Penthouse
Miami Beach, FL 33140
ScottS. Levine, Esquire
Scott S. Levine, P A
1555 North Park Drive, Suite 102
Weston, Florida 33326
Mr. Amir Ben-Zion
585 N.E. 58111 Street
Miami, Florida 33137
Mr. Roman Cherstvov
17001 Collins Avenue, Apt. 4005
Sunny Isles, FL 33160
Cc: Jimmy L. Morales, City Manager
Kathie Brooks, Assistant City Manager
Jose Smith, City Attorney
Raul Aguila, Chief Deputy City Attorney
Gisela Nanson Torres, Leasing Specialist
F:IRHCD\$all\eoon\$all\aaeet\Pennsylvanla Avenue Garage Leasea\Penn 17\l.ste Rent and OefauH Notice May 16, 2013 with May
rent only
We am comml"ed 10 providing excel/em public seJVice orxl sofery 10 oil who llw, wo'*, and play 111 our vlbront, lroplcol, ~lsiOrfc communtly.
54
Parekh Anna
From:
Sent:
To:
Cc:
Subject:
Anna.,
Amir Ben-Zion (amlr@fcsny.com]
Wednesday, May 15, 2013 10:29 PM
Parekh, Anna
Aguila, Raul; kbonde@mlamibeachfl.com; Welthorn, Deede; Amlr Ben-Zion
Status report
I wanted to update you and the gang on what's going on at Penn17 1 it's actually good news for
the city .....
Roman Cherstvov 1 who has been my partner since May 2912$ and invested $3.2M into Penn17,
doesn't see the reopening of Penn17 as I do 1 he wants a more proper restaurant J Deli and Bar
place 1 more high end 1 similar to Milos and I am on the casual rock and roll side •...•. as you
can imagine since the closing in December it has been a finger pointing game •.••
finally 2-3 weeks agoJ Roman introduced me to his friend and they offered me an exit$ Roman
and his friend Oleg 1 who has extensive restaurant experience 1 He owns 12 restaurants I
believe ••••.• Roman's background is in supermarkets and food distr-ibutionJ both of these guys
are wealthy and good business people ••• with many wealthy friends •••. In my opinion they will
invest more 1 stick around longer and try harder to make it a success •••• in all honesty I am
not so motivated right now, my father is in critical condition in NYC 1 we are a close
family, and my attention needs to focus on him and my mother, this Friday my father will
undergo an open heart operation and at his age, 80, it's a long recovery, I am actually
looking to relocate my parents to Miami soon and my plate is full .••••
My point is clear I believe •••• if the city authorizes this ownership shift, and it needs to
be done fast 1 rent continues 1 pennl7 opens, the so called new operator is wealthy and ready
to spend, they run nice beautiful restaurants, the crowd that is connected to the NWS will
love them, they love me less, and every issue will get resolved 1 vendors paid 1 AC relocated 1 seK back in escrow, rent paid in a day or two and the city is better off •••• on a business
level it's much better then 2 partners who no longer get along ••••
I am departing to NYC fo~ several days tomorrow morning •.• feel free to reach me on my cell
Thanks for listening
amir
ATTACHMENT •A"
55
Sklar, Max
From:
Sent:
To:
Subject:
Brooks, Kathie
Friday, May 24, 2013 1 0:36 AM
Sklar, Max
FW: Penn 17
MIAMI BEACH
Kathie G. Brooks
1700 Convention Center Drive, Miami Beach, FL 33139
Tel: 305-673-7010 I Fax: 305-673-7782/ www.miamibeachfl.gov
We are committed to providing excellent public service and safety to ell who live, work and play in our vibrant, tropical, historic community.
From: Scott Levine [mailto:sslevine@msn.com]
Sent: Thursday, May 23, 2013 2:09PM
To: Brooks, Kathie
Subject: Fwd: Penn 17
Dear Ms. Brooks,
I Wlderstand that your schedule is very hectic right now. However, I believe this
matter can be resolved with only a few minutes of your time. Specifically, with
regard to the City of Miami Beach's letter of default against Penn 17, LLC, dated
May 17, 2013. The funds for payment of the expenses outlined in the letter of
default have been deposited into my trust account. These funds can be
immediately released and wired to the City upon the approval ("Approval") of
the transfer of the membership interest in Penn 17, LLC, pursuant paragraph 8.1
of the Penn 17 lease agreement. Moreover, and as verified by Anna Parekh, my
client has been acting in good faith and working diligently to discover the costs
involved with reopening the restaurant, including the costs set forth in the City's
letter of default. As such, and further evidence of my client's good faith, my client
proposes the following:
1. The immediate payment of the requested rent for May 2013, in the amount
of$30,130.23, (This is based upon the rent payment schedule set forth in third
proposed amendment to the Penn 17, LLC, lease
agreement).
FXHIBIT G
1 56
2. The immediate negotiation and release of the A&P Air-Conditioning lien,
and or the posting of$75,000.00 in an escrow account to cover payment of this
lien.
3. The immediate posting of a $50,000.00, construction escrow deposit.
4. The enclosed proof of payment to Cors-Air. It should be noted Cors-Air
forwarded their release to A&P Air-Conditioning.
Compliance with the City is my client's foremost goal, and once the "green light"
has been give for the transfer of the membership interests in Penn 17, LLC, the
above recited funds will be immediately wired or a cashier's check delivered to
the City. However, for my client to blindly forward a payment in the amount of
$155,130.23, without an Approval or an acknowledgement that an Approval is
forthcoming would be negligent, and only result in my daughter not going to
college, because of the malpractice judgment I will have to pay.
I believe the City and my client are seeking the same goals, the issuance of a final
CO issued, and the restaurant reopened as soon as possible. As testament to my
client's resolve, in addition to the payment schedule set forth above, my client
stands ready to absorb the following costs. Approximately, $260,000.00 for
payment to the contractor and any subs, this includes the payment for the moving
of the air conditioner units to the roof of the parking garage, repayment of the
remaining rental balances for the months ofNovember 2012 and December 2012,
which total $64,791.00, and the replenishment of the security deposit, which
amounts to $47,844.00. All totaled, my client is going to incur over $528,000.00
dollars in debt. Expenses which the City might otherwise be forced to absorb.
This amount does not include any renovations, or future rental payments.
In conclusion, I am hopeful that I will receive a telephone call from you this
evening or tomorrow morning. I can be contacted on my cell phone at (954) 709-
2583. Both my client and I are available, and would prefer a face to face meeting
as soon as possible. I await your call.
Very truly yours,
SCOTT S. LEVINE
SCOTT S. LEVINE, ESQ.
SCOTTS. LEVINE, P.A.
1555 North Park Drive, Suite 102
Weston, Florida 33326
Telephone: (954) 616-1132
Facsimile: (866) 703-5508
The information in this e-mail is confidential and may also be
2 57
attorney-client privileged. The information is intended only for the
use of the individual or entity to whom it is addressed. If you are
not the intended recipient, or the agent or employee responsible for
delivering it to the intended recipient, you are hereby notified that any use,
dissemination, distribution or copying of this corrununication is strictly
prohibited. If you have received this e-mail in error, please notify my office
immediately by e-mail SSlevine@msn.com. Thank You.
3 58
EXHIBIT G -REVISED RENT SCHEDULE PURSUANT TO NEGOTIATIONS WITH NEW TRANSFEREES
05-Jun-13
Penn 17, LlC Proposed Rent Schedule
Lease Commencement: October 13, 2011
Lease Year: 2
01/13/13
02/13/13
03/13/13
04/13/13
05/13/13
06/13/13
07/13/13
08/13/13
09/13/13
Total:
Lease Year: 3
11/13/13
12/13/13
01/13/14
02/13/14
03/13/14
04/13/14
05/13/14
06/13/14
07/13/14
08/13/14
09/13/14
Total:
Lease Year: 4
Poge 1 of3
11/13/14
12/13/14
01/13/15
02/13/15
03/13/15
04/13/15
05/13/15
06/13/15
07/13!15
08/13!15
09/13/15
Total:
Base Rent
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47,843.75
$ 47.843.75
$ 47.843.75
$ 430,593.75
Base Rent
$ 49,279.06
$ 49.279.06
$ 49.279.06
$ 49,279.06
$ 49,279.06
$ 49,279.06
$ 49,279.06
$ 49.279.06
$ 49.279.06
$ 49,279.06
$ 49,279.06
$ 49.279.06
$ 591.348.72
Base Rent
$ 50.757.43
$ 50.757.43
$ 50,757.43
$ 50,757.43
$ 50,757.43
$ 50,757.43
$ 50,757.43
$ 50.757.43
$ 50,757.43
$ 50.757.43
$ 50,757.43
$ 50,757.43
$ 609.089.16
Rent Commencement: Aprll14, 2012
Repayment CAM(")
$ $ 8.474.00
$ $ 8,474.00
$ $ 8,474.00
$ $ 8,474.00
$ $ 8,474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 76,266.00
Repayment (1) CAM(")
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8,474.00
$ 2,658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8,474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8,474.00
$ 2,658.00 $ 8,474.00
$ 31,896.00 $ 101,688.00
Repayment {1) CAM{")
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8,474.00
$ 2,658.00 $ 8,474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8,474.00
$ 2.658.00 $ 8.474.00
s 31,896.00 $ 101.688.00
~
(1) Repayment of July 2012 and August2012 rent f$95.688 .00) per
Second Amendment
(2) Repayment of July 2013 through December 2013 deferred rent
($171,106.23)
Current Proposed
Rent Rent total Monthly Total Monthly
Abatement Deferment Payment Payment
$ (28.158.88) $ $ 56.317.75 $ 28.158.87
$ (28.158.88) $ $ 56.317.75 $ 28,158.87
$ (28, 1 58.88) $ $ 56.317.75 $ 28,158.87
$ (28, 158.88) $ $ 56,317.75 $ 28.158.87
$ (28.158.88) $ $ 56.317.75 $ 28,158.87
$ (28. 158.88) $ $ 56.317.75 $ 28.158.87
$ $ (28. 1 58.88) $ 56.317.75 $ 28,158.87
$ $ [28. 158.88) $ 56.317.75 $ 28,158.87
$ $ [28. 158.88) $ 56.317.75 $ 28.158.87
s (168. 953.28) $ (84.476.64) $ 506,859.75 $ 253.429.83
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ (28,876.53) $ 60.41 1.06 $ 31.534.53
$ $ (28.876.53) $ 60.411.06 $ 31.534.53
$ $ (28,876.53) $ 60,411.06 $ 31.534.53
$ $ $ 60.411.06 $ 60.411.06
$ $ $ 60,411.06 $ 60.411.06
$ $ $ 60,411.06 $ 60,411.06
$ $ $ 60.411.06 $ 60.411.06
$ $ $ 60.411.06 $ 60.411.06
$ $ $ 60.411.06 $ 60,411.06
$ $ $ 60,411.06 $ 60.411.06
$ $ $ 60,411.06 $ 60.411.06
$ $ $ 60.411.06 $ 60.411.06
$ $ {86,629.59) $ 724,932.72 $ 638,303.13
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ $ 61,889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61,889.43 $ 61,889.43
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61,889.43 $ 61.889.43
$ $ $ 61,889.43 $ 61.889.43
$ $ $ 61,889.43 $ 61.889.43
$ $ $ 742,673.16 $ 742,673.16
59
EXHIBIT G • REVISED RENT SCHEDULE PURSUANT TO NEGOTIATIONS WITH NEW TRANSFEREES
05-Jun-13 NOTES:
(l) Repayment of July 2012 and Augusf2012 rent ($95.688.00) pet
Second Amendment
(2) Repayment of July 2013 lhtough December 2013 deferred rent
($171.106.23)
Penn 17, llC Proposed Rent Schedule
lease Commencement: October 13. 2011 Rent Commencement: April14. 2012
Current Proposed
L~IIU! Year: 5 Rent Rent Total Monthly Total Monthly
Base Rent Repayment ( 1) CAM(•) Abatement Deferment Payment Payment
$ 52.280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
11/13/15 $ 52,280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
12113/15 $ 52.280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63,412.15
01/13/16 $ 52.280.15 $ 2.658.00 $ 8,474.00 $ $ $ 63.412.15 $ 63,412.15
02/13/16 $ 52.280.15 $ 2,658.00 $ 8.474.00 $ $ $ 63,412.15 $ 63.412.15
03/13/16 $ 52.280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
04/13/16 $ 52,280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
05/13/16 $ 52.280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
06/13/16 $ 52.280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
07/13/16 $ 52.280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63,412.15 $ 63.412.15
08/13/16 $ 52,280.15 $ 2.658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
09/13/16 $ 52.280.15 $ 2,658.00 $ 8.474.00 $ $ $ 63.412.15 $ 63.412.15
Total: $ 627,361.80 $ 31.896.00 $ 101,688.00 s $ s 760.945.80 s 760.945.80
Current Proposed
L~a~~ Y~su; ~ Rent Rent Total Monthly Total Monthly
Base Rent Repayment (2) CAM(") Abatement Deferment Payment Payment
$ 53.848.56 $ 7,129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
11/13/16 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
12/13/16 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62,322.56 $ 69.451.99
01/13/17 $ 53.848.56 $ 7,129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
02/13/17 $ 53.848.56 $ 7,129.43 $ 8,474.00 $ $ $ 62.322.56 $ 69.451.99
03/13/17 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
04/13/17 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
05/13/17 $ 53.848.56 $ 7,129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
06/13/17 $ 53.848.56 $ 7.129.43 $ 8,474.00 $ $ $ 62,322.56 $ 69.451.99
07/13!17 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
08/13/17 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69.451.99
09/13/17 $ 53.848.56 $ 7.129.43 $ 8.474.00 $ $ $ 62,322.56 $ 69.451.99
total: s 646.182.72 $ 85.553.16 $ 101.688.00 $ $ $ 747,870.72 s 833,423.89
Cuuent Proposed
lea~~ Y~gr; z Rent Rent lotal Monthly Total Monthly
Base Rent Repayment (4) CAM{0
) Abatement Deferment Payment Payment
$ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
11/13/17 $ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71,067.45
12/13117 $ 55,464.02 $ 7,129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
01/13/18 $ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
02113118 $ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
03/13/18 $ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63,938.02 $ 71.067.45
04/13118 $ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63,938.02 $ 71,067.45
05/13118 $ 55,464.02 $ 7.129.43 $ 8,474.00 $ $ $ 63.938.02 $ 71.067.45
06/13!18 $ 55.464.02 $ 7,129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
07/13/18 $ 55.464.02 $ 7,129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71,067.45
08/13/18 $ 55,464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
09/13/18 $ 55.464.02 $ 7.129.43 $ 8.474.00 $ $ $ 63,938.02 $ 71.067.45
Total: s 665,568.24 s 85.553.16 $ 101.688.00 $ s $ 7 67.256.24 $ 852,809.40
Page 2of 3
60
EXHIBIT G • REVISED RENT SCHEDULE PURSUANT TO NEGOTIATIONS WITH NEW TRANSFEREES
05-Jun-13 ~ (II Repayment of July2012 ond August2012 tent ($95,688.001 per
Second Amendment
121 Repayment of July 2013 through December 2013 deferred rent
($171.106.23)
l'enn 17, LLC Proposed Rent Schedule
Lease Commencement: October 13, 2011 Rent commencement: Apri114, 2012
Lease Y!i:Qr; I! Total Monthly
Base Rent CAM{•) Payment
$ 57.127.94 $ 8,474.00 $ 65,601.94
$ 57,127.94 $ 8.474.00 $ 65.601.94
$ 57.127.94 $ 8,474.00 $ 65,601.94
01/13/19 $ 57,127.94 $ 8.474.00 $ 65.601.94
02/13/19 $ 57,127.94 $ 8.474.00 $ 65,601.94
03/13/19 $ 57.127.94 $ 8.474.00 $ 65,601.94
04/13/19 $ 57,127.94 $ 8,474.00 $ 65,601.94
05/13/19 $ 57,127.94 $ 8,474.00 $ 65,601.94
06/13/19 $ 57.127.94 $ 8.474.00 $ 65.601.94
07/13/19 $ 57.127.94 $ 8,474.00 $ 65,601.94
08/13/19 $ 57.127.94 $ 8,474.00 $ 65,601.94
09/13/19 $ 57,127.94 $ 8,474.00 $ 65,601.94
Total: s 685,535.28 s 101.688.00 s 787,223.28
Lease Year: 9 Total Monthly
Base Rent CAM(•) Payment
$ 58.841.78 $ 8.474.00 $ 67,315.78
ll/13/19 $ 58.841.78 $ 8.474.00 $ 67,315.78
12/13/19 $ 58,841.78 $ 8.474.00 $ 67,315.78
01{13/20 $ 58.841.78 $ 8.474.00 $ 67,315.78
02/13/20 $ 58,841.78 $ 8.474.00 $ 67,315.78
03/13/20 $ 58,841.78 $ 8.474.00 $ 67.315.78
04/13/20 $ 58,841.78 $ 8.474.00 $ 67.315.78
05/13/20 $ 58,841.78 $ 8.474.00 $ 67,315.78
06/13/20 $ 58.841.78 $ 8,474.00 $ 67,315.78
07113!20 $ 58,841.78 $ 8.474.00 $ 67,315.78
08/13/20 $ 58.841.78 $ 8.474.00 $ 67.315.78
09/13/20 $ 58,841.78 $ 8.474.00 $ 67.315.78
Total: s 706,101.36 s 101.688.00 s 807,789.36
Lease Yegr: lQ Total Monthly
Base Rent CAM{•) Payment
$ 60,607.03 $ 8,474.00 $ 69.081.03
11/13/20 $ 60,607.03 $ 8,474.00 $ 69.081.03
12/13/20 $ 60,607.03 $ 8.474.00 $ 69,081.03
01/13/21 $ 60.607.03 $ 8.474.00 $ 69,081.03
02/13/21 $ 60.607.03 $ 8,474.00 $ 69,081.03
03/13/21 $ 60.607.03 $ 8.474.00 $ 69,081.03
04/13/21 $ 60,607.03 $ 8.474.00 $ 69,081.03
05{13/21 $ 60.607.03 $ 8.474.00 $ 69,081.03
06/13/21 $ 60.607.03 $ 8,474.00 $ 69.081.03
07/13/21 $ 60.607.03 $ 8.474.00 $ 69,081.03
08/13/21 $ 60,607.03 $ 8.474.00 $ 69,081.03
09/13/21 $ 60.607.03 $ 8.474.00 $ 69,081.03
Total: s 727,284.36 $ 101,688.00 s &28,972.36
NOTE: CAM(*}· Pursuant to Section 18 of the Lease Summary, the CAM tate Is subject to adjustment
to reflect the actual pro-rata share of Property TaKes and Insurance costs Incurred by the Landlord
during the previous calendar year.
Poge 3of3
61
....... 17U.C 1ST Yl!AIIMOHTHLY OROSS MVENUE SALES &INCOME tOES OROS8 OPERATING REVENUE COST OF GOOOS SOLD 1'000 ~-~ BEER WINE· CHAMPAGN~; UOLJO« TOTAL COST OF OOOOS SOLD [ NET O!'ERAllNO REVENUES I PAYROU.AHOBEHEmS MANAGEMEHT EXECUTM! CHEF SOUSCHEF FRONT OF MOUSE MGR CHEF DE PARTIE BARTENDERS EXPO WI'JTST~F SUPPORT HOST/HOSTESS TAKEOUT SUSHI CHEF .JRSOUSCHU P...SmYC>EF COOk I COOK I COOk Ill COOK IV DISMIUTILITY EIONUS MANAGEMENT MEDICAL BENEFITS AYROLL TAXES & B£NEFITS TOTAl. PAYROU. OTHI!lt EXPEHS£S ~a AUTOM08flE EXPENSES B!\NK CHARGES BAR SUPPliES CMHOVERisttORT CHINAWAAE CLEANING SUPPUES COMPUTER EXPENSES CREDIT CAI\1) COMMISSIONS DECORATIONS DUES & SU6SGRIPTIOI<S EMPI.OYEE RECRIJ<TMENT EQUIPMENT RENTAUlEME FIRE/SECURITY GLASSWARE INSURANCE KITCHEN EQUIP-UTILITIES UCENSES & PERMITS UNENS MAINTENANCE CONTRACTS UUSJC & EHTmfAJNMENT 65% K 1M!> 5'10. 1111' ~ 1S44 26% 26% 20'1<> S~:pte~ Oc:Ulbtr NovembeJ Oe:cember Ja~•ry February Morch 1 $¥EAR RQRECASi~, • Jlly ~""' .j20,000 52D,OOO 84&,000 72D.OOO 600,00D 690,000 710,000 61D,OOO 680,000 680,00D 680,000 680,000 1ST MONTH ZND MONTH JRJ) MONTH UH MONTH 5TH MOIITH 6TH MONTH 7TH MONTH ITH MONTH ITH MONTH 10TH MONTH 11TH MONTH 12TH MONTH ACTUAl 273.000 2\,000 63,000 21,000 <2,000 420,000 &IJC)O 3,150 15.750 5,250 8.400 114,AM 301.550 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 147,000 141,000 15.000 750 200 1.000 750 2,50D 6,000 SOD 10,080 500 -250 750 125 2,000 5,000 2,000 SOD 5,000 10,000 5,000 ACTUAL 338,000 26,000 76,000 26,000 52,000 620,000 101,400 3,900 19,500 8,500 10;100 1,1,700 m,.oo 182,000 18z,DOO 15,000 750 200 1,000 750 2,500 6,000 500 12,<30 500 <00 250 750 125 2,000 s.ooo 2,000 5,000 10.000 5,000 ACTUAL 419,2!10 32,2SO 1115,750 32,250 84,500 641,000 125.ns ~.838 24,188 8,063 12,tDO 17&,7U 4n,ZII 225,750 2U,UO 15.000 7!10 200 1,000 750 2,500 8,000 500 15,<-110 500 400 ~ 750 125 2,000 5,000 2,000 5,000 10,000 5,000 ACTUAL <1$8.000 3UOO 108,000 36,000 72,000 720,000 >40,-5,400 27,000 9,000 14.400 1118.200 SZ3,100 252,000 262,1100 15.000 750 200 1,000 750 2,500 8,000 500 !7.280 500 .coo 250 750 125 2.000 5,000 2,000 500 5,500 10.000 5,000 ACTUAl. +11!,500 34,500 10~.500 34,500 89,000 uo_ooo 134.SSO 5,175 25,8, 8,825 13,800 138,1121 601,97S 241,500 141,500 15,000 750 200 1,000 750 2,500 6,000 500 16,560 500 .coo 250 750 125 2,000 5,000 2,000 5,500 tD,DOO s.ooo ACTUAl. .... ,500 34,500 103,500 3-1,500 69,000 UO,OOO 134,560 5,175 25,175 8,625 13,800 188,025 f01,t71 241,500 ZII1,10D 15,000 750 200 1,000 750 2,500 6,000 500 16,580 500 -250 ISO 125 2,000 s.ooo 2,000 0 5,500 10,000 5,000 ACTUAL 461,500 35,500 106,500 35,500 71,000 110,1100 133,450 5,325 26,525 8,e75 14,200 lt'-476 ~Mz• $,000 230,750 235.750 15,000 750 200 1,000 750 2,500 6,000 500 17,040 500 -= 750 125 2,000 S,OOO 2,000 SOD 6,000 12,000 5,000 ACTUAl 442,000 34,000 102,000 34,000 88,000 0 1110,1100 132,600 5.100 2'-500 e,soo n,ooo 111,300 ..... 700 5,000 221,000 211i,OOD 15,000 750 200 1,000 7!10 2,500 6,000 500 19,320 500 -250 750 125 2,000 ,,000 2,000 5.000 12,000 5.000 ACTUAL ~.ooo 34.000 102,000 34,000 88,000 NO,IIOO 132,60a 5,100 25,500 &.500 t3,600 us.~ ..... 700 5.000 221,000 121,000 15.000 750 200 t,OOO 750 2,500 6,000 500 16,320 500 -250 750 125 2,000 s,ooo 2,000 6,000 12.000 5,000 ACTUAL 442,000 3•,ooo 102,000 3&,000 68,000 080,000 \32,eoQ 5,100 25,500 8,500 1),600 1M .. OC> -700 5,000 2114,000 20t.OOO IS,OOO 750 200 1,000 750 2,500 8,000 500 16,3ZO 500 400 250 750 125 2,000 5,000 2,000 500 8,500 12,000 s,ooo ACTUAL 442.000 34,000 1Q2,000 34,000 88,000 --13Z,WO 5,100 26.500 a,50o 13,600 151,100 4M,700 5,000 204,000 100,000 15,000 750 200 1,000 750 2,500 6,000 500 15,320 500 -250 750 125 2,000 6.000 2,000 0 6.500 12,000 5,000 ACTUAl ~.ooo 34,000 102,000 34,000 6$,000 5110,000 132,800 5,100 25,500 8,500 13,800 18&.300 494.700 s.ooo 204,000 209,000 15.000 750 200 1,000 750 2,~00 6,000 500 16,320 500 -250 7SO 125 2,000 s.ooo 2,000 0 6,500 12,000 5.000 YMr1 TOTALS S.Q66,7SO 65% 3a9,750 5% 1,169,250 15'14 3a9,750 5% ne,aoo 10% 0 7,7M,OOO 100% 1.520,025 30!6 st.~ 15% 29l!.S13 25% 87,038 25% 155,900 2111' l,1z.&.131 27% S..STO.Ml TS% 0 0 0 0 0 0 0 0 "'" 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% O'l4 Ill' O'lr, 0% 0% Ill' Ill' 0% 0% 30,000 1% 2,574,500 99% z.~•o :11% 180,000 $,000 2,400 12,000 8,000 30,000 72,000 ~.ooo 167,080 8,000 4,800 3.000 t,OOO 1,500 24,000 8D,OOO 24,000 2,000 58,000 132,000 110,000 2% 0% 0% 0% 0% 0% 1% 0% 2% Ill' "" "'" "" "" Ill' 1% 0% 0% 1% 2% 1% EXHIBIT H 62
Penn1iLLC September October November December Januruy February March 1SiinYEAR RQRECASiline July August 1ST~ MONTHLY GROSS REVENUE 420,000 520,000 645,000 720,000 690,000 690,000 710,000 680,000 680,000 680,000 680,000 680,000 Year1 1ST MONTH 2ND MONTH 3RO MONTH 4TH MONTH 5TH MONTH 6TH MONTH 7TH MONTH 8TH MONTH 9TH MONTH 10TH MONTH 11TH MONTH 12TH MONTH TOTALS OFRCE SUPPUES 600 600 600 600 600 600 600 600 600 600 600 600 7,200 0% OPERATING SUPPUES 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 1% PAYROlL EXPENSES (PAYCHEX) 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 0% PRINTI~G & REPRODUCTION 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 0% PROFE~IONAL FEES 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 75,000 1% 63
P«n11lLC 1ST YEAR MONTHLY OROSS R£11£NU£ REPAJAS:AJR CONDITIONING REPAIRS:BUILDING REPAIRS.'COMI'IITER REPAIRS:ELECl'UCAL & MECHANICAL REPAIRS:ENGIHEERING SUPPUE.S REPAIRs:l'IR!YSAI'ETY REPAIRs:l'LOOR COVERING REPAIRS!FVRNTTVRE REPAIR REPAIRS:LIGifT BULBS REPAIRS:LOCKS & KEYS REPAIRS:KITCHEN REPAIRS:PAIN11NG & DECORA11N<l REPAIRS:PE.ST CONTROL REPAIRS:PLU!IB!NG REPAIRS: TELEPHONE SILVERWARE TElEPHONE TRAVEL & ENTERTAINMENT UNIFORM UNIFORM a..EANlNG WASTE REMOVAl. TOTAl. OTHER EXP£HSES ELECTRJC GAS WATER IITUTlES TOTAL UnLmES INO:OME BEfO!tE 1'1XJ'D El!PENSI!S~ FIXED EXPENSES RENT EXPENSE CAM ADOITlONAL RENT REPAYMENT TOTAL FDCEO EXPENSES NET OPERA11NGINCOME s.ember October Noveril« December JanutJY Fd>ruory Mudl 1 $>YEAR liGRECASWno JoJiy Augua 420,000 520,000 &<5,000 no,ooo 690,000 890,000 710,000 eeo,ooo 6to,OOO !60,000 660,000 880,000 1ST MONTH 2ND MONTH I !tO MONlH 4TH MONlH 5TH MONTH OTH MONTH TrH MON'I'H 5TH MONTH tTH MONTH 101H MONTH 1 I 1H MONTH 12Tit IIONTH ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 500 300 100 200 100 100 76 250 200 250 0 GOO t.200 500 200 300 2,000 ••,cao a,ooo 2~0 5,000 11,600 62,o20 151,685 O,Z38 Z7,92S 'lAIJ'fl 500 300 100 0 200 100 tOO 75 250 200 250 0 soo \,200 500 200 300 2.000 u.~:~» 1.000 2,500 5,000 11,1i110 17,170 19,685 8,238 2.660 30,681 57,289 500 300 100 0 200 100 100 75 250 200 250 500 0 600 1,200 500 200 300 2.000 W,QI MOO 2,SOO 5,000 15,JOO 111,656 19,685 8,238 2.658 30.$81 100,977 500 300 100 0 200 100 100 75 250 200 250 600 1,200 500 200 350 2.000 u,Teo a.ooo 2,500 5,000 15,6110 157.620 19,665 8,238 2,658 30,5&1 126,9U 500 300 100 500 200 100 100 75 250 200 250 600 ,,200 500 200 350 2.000 Sl,l)IO s.ooo 2.SOO 5,000 15.500 , .. , .. 4S.27S 8,<17-f $,057 U,310 11,10~ 500 300 100 0 200 100 tOO 75 250 200 250 500 500 600 1,200 500 200 350 2.000 """ 8,000 2,500 s,coo 1&,100 1 ..... 15 47,844 8,474 8,0&7 Gf1375 82,1140 5(10 300 100 0 200 100 100 75 250 200 250 600 1,200 500 200 400 2.000 101pscl 8,000 z.soo 5,000 I .. MO 1 ... ,." 47,84-4 8,474 8,057 U.37S ft,ltD 5(10 300 100 0 200 100 100 75 250 200 2SO 0 0 GOO 1,200 500 200 400 2,000 ...... 70 8,000 2~ $,000 ''sao 1A,NO 47,840 &,474 5,000 S1,311 U,012 500 300 100 200 100 100 75 250 200 250 500 $00 1,200 500 200 400 2,000 100.11'0 8,000 2,500 5,1)00 15,600 u;uso 47.844 8,<74 4,543 5,000 65.~1 e&,MS 000 300 100 500 200 100 100 75 250 200 250 $00 1,200 500 200 060 2.000 101.420 8,000 2.500 5,000 ... &DO 118,780 47,844 8,236 20,400 5,000 61,482 87,2'18 500 300 100 0 200 100 100 75 250 200 250 600 1,200 500 200 060 2.000 100,420 a.coo 2.$00 5,000 15,600 116,780 47,844 8,2Je 20,400 5,000 811682 8&.268 soo 300 100 0 200 100 100 75 250 200 250 500 500 600 1,200 500 200 ~ 2.000 101.420 8,000 2~0 5,000 IS,GOO 116,710 47,844 8,Z38 20,400 5,000 81,48% 87,ZU Y•ri TOTAl.S 6,000 6,000 6,000 3,600 0% 0% 0% 0% 1,200 0% 1,ooo o•..G 2,400 0% t.200 0% 1.200 0% 900 0'% 3,000 II% 2,400 0'% MOO 0'% 2,000 II% 1,000 II% 7.200 0% 14,400 II% 6,000 0% 2.400 II% 4.SOO 0% 24,000 II% 1,,..,_ 11% 98,000 30,000 60,000 1N,OOO 1% II% ,, ~ 1-'"·"' ~ 462,927 &% 100,038 1% 65,743 "' 57,145 1% t8&,851 t% 1,237,0" 16% 64
ASSUMPTIONS PENN 17
1s t & 2nd Month Calculations
Covers
Restaurant Ba 200
Dinner 280
Lunch 150
TOTAL 630
TOTAL
AVG
Check
$12 .00
$35.00
$22.00
days
3rd & 4th Month Calculations
AVG
Covers Cheek
Restaurant Ba 240 $12.00
Dinner 360 $35.00
Lunch 330 $22.00
TOTA L 930
TOTAL
6th & 6th Month Calculations
AVG
Covers Check
Restaurant Ba 260 $12 .00
Dinner 380 $35.00
Lunch 300 $22.00
TOTAL 940
days
Catering
TOTAL
7th Month to 12th Month Calculations
Total
$2,400 .00
$9,800 .00
$3,300 .00
$15,500 .00 X
Total
$2,880.00
$12,600.00
$7,260.00
$22 ,740.00 X
Total
$3,120 .00
$13,300.00
$6,600.00
$23,020.00 X
$0.00
..... Revenue is increased by 5% across the board
2nd Year and 3rd Year Calculations
.... Revenue is increased by 5% across the board
4th Year and 5th Year Calculations
•••• Revenue is increased by 5% across the board
30
30
30
$465,000.00
$465,000.00
$682,200.00
$0.00
$682,200.00
$690,600.00
$0.00
$690,600.00
65
ASSUMPTIONS PENN 17
1st & 2nd Month Calculations
Covers
Restaurant Ba 200
Dinner 280
Lunch 150
TOTAL 630
TOTAL
AVG
Check
$12.00
$35.00
$22.00
days
3rd & 4th Month Calculations
AVG
Covers Check
Restaurant Ba 240 $12.00
Dinner 360 $35.00
Lunch 330 $22.00
TOTAL 930
TOTAL
5th & 6th Month Calculations
AVG
Covers Check
Restaurant Ba 260 $12 .00
Dinner 380 $35.00
Lunch 300 $22.00
TOTAL 940
days
Catering
TOTAL
7th Month to 12th Month Calculations
Total
$2,400.00
$9,800.00
$3,300.00
$15,500.00 X
Total
$2,880.00
$12,600.00
$7.260.00
$22,740.00 X
Total
$3,120.00
$13,300.00
$6,600.00
$23,020.00 X
$0.00
•••• Revenue is increased by 5% across the board
2nd Year and 3rd Year Calculations
**** Revenue is increased by 5% across the board
4th Year and 5th Year Calculations
•••• Revenue is increased by 5% across the board
30
30
30
$465,000.00
$465,000.00
$682,200.00
$0.00
$682,200.00
$690,600.00
$0.00
$690,600.00
66
RESOLUTION TO BE SUBMITTED
67
THIS PAGE INTENTIONALLY LEFT BLANK
68
RESOLUTION NO. _________ _
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING
AND AUTHORIZING THE CITY MANAGER OR HIS
DESIGNEE TO SUBMIT AN APPLICATION TO THE US
DEPARTMENT OF JUSTICE FOR THE FISCAL YEAR 2013
EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE
GRANT (JAG) PROGRAM , FOR FUNDING IN THE
APPROXIMATE AMOUNT OF $61,000 FOR THE CITY'S
POLICE DEPARTMENT PRIORITIES; APPROPRIATING THE
GRANT, AND CITY EXPENSES, IF APPROVED AND
ACCEPTED BY THE CITY AND AUTHORIZING THE
EXECUTION OF ALL NECESSARY DOCUMENTS RELATED
TO THE AFORESTATED APPLICATION, INCLUDING,
WITHOUT LIMITATION, AUDITS, AND AUTHORIZING THE
CITY MANAGER OR HIS DESIGNEE TO TAKE ALL
NECESSARY ACTIONS RELATED TO THIS GRANT
WHEREAS, the Edward Byrne Memorial Justice Assistance Grant (JAG )
Program provides states an d un its of local gove rnm ents with critical fun ding nece ssary
to support a rang e of prog ram areas includ ing law enfo rcement, prosecuti on and cou rt
prog rams , prevention and education programs , corrections and community corrections,
drug trea tmen t and enforcement, crime victim and witness in itiatives , and planning ,
evaluation, an d te chnol ogy improvement progra ms; and
WHEREAS, JAG funds may be used for state and local initiatives, technical
assistance , strategic planning, research and eva luati on (incl uding forensic s), data
coll ection, training, perso nnel, equipment, fo rensic labo ratori es, suppli es, contractua l
support, and crimi nal justice information systems t hat will im prove or enhance such
a reas as: law enforcement programs , prosec ution and court programs , prevention and
education programs, corrections and community co rrection s prog rams, drug treatment
and enforcement programs, pl anning, eva luation, and technology improve men t
program s, and crime victim a nd witness program s (othe r th an compe nsation}; and
WHEREAS, supplanting is prohi bited und e r JAG and applicants cannot replace
or supplant non-federal funds that have bee n appropriated for the sa me purpose
however, a unit of local government may use up to 10 pe rce nt of th e award, incl uding
interest, for costs associated with adm inistering JAG f unds; and
WHEREAS, in addition to this Ci ty Commission agenda item, inform ation
regarding this grant is on the City's website at: www.miamibeachfl.gov with an
opportunity for public comment and the Admin istration 's in tent to submit for this grant is
be ing made public by means of this ag end a item; an d
Agenda Item ~ 7 J
Date frS-r?
69
WHEREAS, the grant was released by the Department of Justice after the
print date of the June 5, 2013 City Commission agenda and the deadline for this grant is
before the July 2013 City Commission meeting, as such, the grant has been placed on
this agenda as an Addendum item; and
WHEREAS, the Administration requests approval to submit a grant application
to the US Department of Justice, Edward Byrne Memorial Justice Assistance Grant
(JAG) for FY 2013 funding in the approximate amount of $61 ,000 for the City's' Police
Department priorities; and
WHEREAS, this grant does not require matching funds and supports the key
intended outcome maintain crime rates at or below national trends.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH that the Mayor and City Commission
hereby approve and authorize the City Manager or his designee to submit an application
to the US Department of Justice for the Fiscal Year 2013 Edward Byrne Memorial
Justice Assistance Grant (JAG } Program for funding in the approximate amount of
$61 ,000 for the City's Police Department priorities ; appropriating the above grant, and
City expenses , if approved and accepted by the City ; authorizing the execution of all
necessary documents related to this application, including, without limitation, audits and
authorizing the City Manager or his designee to take all necessary actions related to this
grant.
PASSED and ADOPTED this ___ day of ___ , 2013.
ATTEST:
MAYOR
CITY CLERK
JMG/KGB/JMH
T :\AGENDA\2013\June 5\Gra nts Reso-2nd ltem.doc
(n\'l..(,'}
ey~~
70
f~IAMI BEACH
OFFICE OF THE CITY MANAGER
COMMI SSION MEMORANDUM
TO: Mayor Bower and Members of th
DATE: June 5, 2013
SUBJECT: Update on the Miami Bea h Convention Center Project
The selection process for the Convention Center Development Team has now entered the
due diligence phase where City staff is soliciting additional information from expert
consultants and specific City committees with relevant competence in the area. This process
will culminate with City Commission meetings in July to select the team and approve the
November referendum language.
The current schedule is as follows:
June 18 Special meeting of the Convention Center Advisory Board
June 25
July 2 & 3
JulyS
Special meeting of the Planning Board
Individual briefings with Commissioners
Special meeting of the Land Use Committee at 5 p.m.
-Focus on review of the master plans
-Review City staff recommendation on the program elements
July 12
July 17
Special Call meeting of the City Commission at 1 p.m.
-Review City staff recommendation on team selection
and the program
-Review various consultant reports
-Short closing presentations by development teams
-Public comment
Time certain 6 p.m. for final discussion and vote
During the month of June, we will be receiving reports from three consultants:
A) Corporate and financial background checks on the two teams
B) A real estate expert analysis of the lease terms
C) A convention center consultant to assess operational elements of the proposed
convention centers, including during the construction phasing
We ore commiffed io providing excellent public service and sofa~; to all who live, work, and ploy in our vibt0/1 1, lroplcal, historic communifi.
Agenda Item --;,R..:..q..:...._::C..~
Date G-s~,.; 71
We will also be receiving a traffic analysis from our Planning and Public Work departments,
plus feedback on traffic impacts on Miami Beach Senior High from the Quality Education
Committee.
I had indicated at one point that we would retain a construction expert; but in discussions
with the expert company, it became clear that there was little they could contribute at this
early phase of schematic drawings that would help us select one team over another. It did
not make sense to spend over $100,000 for such an effort. Once a development team is
selected, we will certainly retain such an expert as we negotiate documents and engage in
the preparation of construction plans and budgets.
I have also, on a pro bono basis, solicited the advice of two local experts in major
construction projects. Jim Carr, a partner in Godina Partners (and a Miami Beach resident),
and Jose Gonzalez, a Senior Vice President with the Flagler Development Group , have
agreed, at no cost to the City, to advise me with respect to issues like the professional
development fees, construction schedules and other such issues. As far as I am aware, their
respective companies have no interest in these proceedings and their commitment to
community service motivates them to lend a hand to our City.
Of course, we continue to count on the expert advice of SAG and Jeff Sachs, who have
been involved in many of the major convention center and hotel development projects
across the country. Furthermore, our finance team includes the City's Financial Advisor, our
special outside bond counsel of Squire Sanders and our in-house team of the Finance and
Legal departments.
During the month of June, we will continue to have the respective models and drawings on
display for the public in the 1st floor conference room at City Hall. Visitors are welcome to
provide public commentary in writing or on-line.
I wanted to take this opportunity to assure each of you, the two development teams and,
most importantly, the residents of this community that this process continues to be
transparent, open and fair. As the person whose signature will appear on the staff
recommendation, you have my commitment that my recommendation will not be politicized.
There is no "fix" and I resent anyone that suggests otherwise. This is going to be a very
difficult decision for me and, more importantly, for each of you. We have two world-class
teams and two outstanding proposals. We are fortunate to be in this position. But there is a
lot of information to process and we are forced to do so in public meetings that are not
necessarily efficient or expedient. As such , we ask for your patience and understanding.
Our mission is to provide you all the information you need to make an intelligent decision
and our best professional recommendation. The ultimate decision rests with you.
Thank you for allowing me to play a role in this process that is so critical to our City's future.
JLM:pw
f :l cmgr/$all/memos/Selectio n T ea m-Due Dili gence
We ore cormnilted lo providing excel/en! public service and safely 10 all who live, work, ond ploy in ottr vihrar.l, lropicol, hisloric communi~;
72
REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
Resolution approving and authorizing the Chairperson and Secretary to execute a Third Amendment to that certain Retail Lease
Agreement by and between the City. RDA (Collectively, Lessor), and Penn 17, LLC (Lessee). dated September 16, 2011, involving
the lease at the Pennsylvania Avenue Garage, 1661 Pennsylvania Avenue, Miami Beach, Florida ("Lease"); and further approving,
following a duly noticed Public Hearing, an entertainment component, as an additional use for said Premises.
Resolution of the RDA approving the transfer/sale of 100% ownership interest in Penn 17, LLC from Current managers, Amir Ben
Zion and Roman Cherstvov to Roman Cherstvov and OBK Project LLC; Further waiving by 5nths vote. the competitive bidding
requirements, finding such waiver to be in the best interest of the City, and authorizing the City Manger to execute an agreement with
Halloran Construction Inc. in an amount not to exceed $250,000.00 , to relocate the kitchen exhaust system.
Key Intended Outcome Supported :
Increase resident satisfaction with the level of services and facilities .
Supporting Data (Surveys, Environmental Scan, etc.):
Approximately 40% of retail businesses surveyed. rank Miami Beach as one of the best places to do business and 61% of the same
group would recommend Miami Beach as a place to do business.
Issue:
Shall the RDA authorize the execution of Amendment No. 3 to the Lease and further approve an entertainment component, as an
additional use for the Premises? Shall the City Commission authorize the transfer/sale of 100% ownership interest in Penn 17, LLC;
and further waive the competitive bidding requirements, permitting City Manager to execute an agreement with Halloran Construction
Inc. for the relocation of the kitchen exhaust venting system for a fee not to exceed $250,000 .00?
Item Summary/Recommendation:
Following receipt of an executed General Release by Penn 17 LLC on May 3. 2013. the City agreed to open and continue the above-
referenced Resolution/agenda item at the May 8 1
h, 2013 City Commission meeting.
On May 17. 2013, the City issued written notice of default to Penn 17 LLC, for failing to pay rent for the month of May ($30, 130.23};
failing to maintain the Premises open for business; failure to pay lienors; ( A&P Air Conditioning claim of lien and suit against the City,
totaling $73, 693; Cors-Air debt owed $3,001.92); failure to show proof of the construction deposit ( $50,000); and failure to notify the
City of a transfer of interest in Penn 17, LLC, to Roman Cherstovov, subsequent to Lease execution.
On May 14. 2013 Staff was provided with a Binding Letter of Intent. setting forth the terms of the sale of Amir Ben-Zion's interest in
Penn 17, LLC to OBK Project, LLC ("OBK"}, which sale would remove Amir Ben-Zion as a managing member and leave Roman
Cherstvov and OBK as managing members. Staff has requested tinancials and other qualification verifications. To date, OBK has
provided proof that its managing members have experience in the food/restaurant business and also have sufficient funds to cure the
existing Lease defaults and operate the restaurant.
Recommendation:
The Administration recommends approval of Resolution No. 1, approving Amendment No. 3 to the Retail Lease Agreement by and
between the City, the Miami Beach Redevelopment Agency (as Landlord), and Penn 17, LLC (as Lessee); which Amendment
includes terms and conditions for a proposed rent abatement, as approved by the Finance and Citywide Projects Committee
(FCWPC); and also includes the approval of an entertainment use on the Leased Premises.
Prior to, and as a condition to, approving Resolution No. 1, however, the Administration recommends that the City Commission first
approve Resolution No. 2, which approves a transfer under the Lease in the controlling ownership interest in Penn 17. LLC, from Amir
Ben-Zion and Roman Cherstvov, the current managers/members of Penn 17 (Transferors). to Roman Cherstvov and OBK Project.
LLC (Eugene Alekseychenko and Oleg Elyutin, Managing Members}. the proposed purchasers of Penn 17 (Transferees); subject to
and conditioned upon Transferees' satisfaction of the conditions set forth in Resolution No. 2 (which should also be satisfied prior to
the City's execution of Amendment No.3 to the Lease}.
Finally, the Administration recommends that the RDA waive by a 5nths vote, the formal competitive bidding requirements, finding
that such waiver to be in the best interest of the City. and authorize the City Manager, or his designee, to negotiate and execute an
agreement with Halloran Construction Inc., in an amount not to exceed $250,000 to address the relocation of the kitchen exhaust
venting system installed by Penn 17, LLC .
Funds: I I Amount
I 1 I
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
TECD
MS
6
MIAMI BEACH
roval of revised rent schedule on Janua 24, 2013
I
I
Account
Executive
JLM
AGENDA ITEM I A
DATE '--S-1'$
73
(9 MIAMI BEACH
City of Miami Beach, 1700 Conventio n Center Drive, Miami Beach, Fl orida 33 I 39, www.miomibeoch fl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Me mbers of the Miami
FROM: J immy L. Morales , Executive Director
DATE: June 5, 2013
SUBJ ECT :
BLIC HEARING
(OPENED AND CONTINUED
FROM MAY 8, 2013)
1. A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, APPROVING AND AUTHORIZING THE
CHAIRPERSON AND SECRETARY TO EXECUTE AMENDMENT NO. 3 TO THAT
CERTAIN RETAIL LEASE AGREEMENT BY AND BETWEEN THE CITY OF MIAMI
BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY (COLLECTIVELY,
LESSOR), AND PENN 17, LLC (LESSEE), DATED SEPTEMBER 16, 2011,
INVOLVING THE LEASE OF APPROXIMATELY 7 ,655 SQUARE FEET OF GROUND
FLOOR RETAIL SPACE AT THE PENNSYLVANIA AVENUE GARAGE, 1661
PENNSYLVANIA AVENUE, MIAMI BEACH , FLORIDA; AND FURTHER APPROVING,
FOLLOWING A DULY NOTICED PUBLIC HEARING AS REQUIRED BY SECTION
142-362 OF THE CITY OF MIAMI BEACH CODE, AN ENTERTAINMENT
COMPONENT, WHICH WILL BE ADDED AS AN ADDITIONAL USE OF THE LEASED
PREMISES IN CONJUNCTION WITH TENANT'S RE-OPENING AND RE-BRANDING
OF SUCH PREMISES.
(NEW ITEM)
2. A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, APPROVING THE TRANSFER, AS SUCH TERM IS
DEFINED IN THE LEASE AGREEMENT (THE LEASE) BY AND BETWEEN THE CITY
OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY
(COLLECTIVELY, LESSOR), AND PENN 17, LLC (LESSEE), OF A 100%
CONTROLLING OWNERSHIP INTEREST IN PENN 17, LLC FROM THE CURRENT
MANAGERS/MEMBERS, AMIR BEN-ZION AND RAMON CHERSTVOV
(TRANSFERORS), TO THE PROPOSED PURCHASERS OF PENN 17, ROMAN
CHERSTVOV AND OBK PROJECT LLC (TRANSFEREES); WITH APPROVAL OF
SUCH TRANSFER SUBJECT TO AND CONTIGENT UPON THE PARTIES'
EXECUTION OF AMENDMENT NO. 3 TO THE LEASE AND, FURTHER,
SATISFACTION BY TRANSFEREES OF THE FOLLOWING CONDITIONS (TO BE
SATISFIED PRIOR TO AND AS A CONDITION OF LESSOR'S EXECUTION OF
AMENDMENT NO.3): 1) PAYMENT 'OF OUTSTANDING RENT FOR THE MONTHS
OF MAY AND JUNE, 2013; 2) SATISFACTION OF ANY AND ALL LIENS AGAINST
THE LEASED PREMISES INCLUDING, WITHOUT LIMITATION , LIENS AND/OR
CLAIMS FILED BY A & P AIR CONDITIONING AND CORS-AIR; 3) DISMISSAL,
74
Redevelopment Agency Memorandum
Penn 17, LLC - Retail Lease Amended Rent Schedule
June 5 , 2013
Page 2 of 8
WITH PREJUDICE, OF THE LAWSUIT FILED BY A & P AGAINST THE CITY TO
COLLECT THE A & P LIEN; 4) RE-PAYMENT OF THE REMAINING BALANCE OF
RENT AND CAM FOR NOVEMBER AND DECEMBER 2012 , IN THE AMOUNT OF
$120,519.98; 5) REPLACEMENT OF THE REQUIRED $50,000 MINIMUM BALANCE
INTO THE LESSEE CONSTRUCTION FUND; 6) RE-LOCATION, AT TRANSFEREES'
SOLE COST, OF THE LEASED PREMISES AJC UNITS TO THE ROOF OF THE
PENNSYLVANIA GARAGE; AND 7) EXECUTION OF A GENERAL UNCONDITIONAL
RELEASE IN FAVOR OF THE CITY AND RDA; AND FURTHER WAIVING, BY
5/7THS VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENTS, FINDING
SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, AND AUTHORIZING
THE CITY MANAGER, OR HIS DESIGNEE, TO NEGOTIATE AND EXECUTE AN
AGREEMENT WITH HALLORAN CONSTRUCTION, INC., IN AN AMOUNT NOT TO
EXCEED $250,000.00, TO ADDRESS THE RELOCATION OF THE KITCHEN
EXHAUST VENTING SYSTEM INSTALLED BY PENN 17, LLC.
ADMINISTRATION RECOMMENDATION
Following opening and continuing of Resolution No. 1 above at the May 8, 2013 City
Commission Meeting , the Administration recommends approval of Amendment No. 3 to the
Reta il Lease Agreement by and between the City, the Miami Beach Redevel opm ent Agency (as
Landlord), and Penn 17 , LLC {as Lessee); which Amendment includes te rms and conditions for
a proposed rent abatement, as appro ved by the Finance and Citywide Projects Committee
(FCWPC); and includes the addition of an entertainment use on the Leased Premises.
As a condition of (and prior to) approval of Resolution No . 1, however, the Administration
recom mends that the City Commission first approve Resolution No . 2, which approves a
t ransfe r under the Lease in th e controlling owne rsh ip interest in Penn 17, LLC , from Amir Ben-
Zion and Roman Cherstvov , the cu rrent manag ers /me mb ers of Pe nn 17 (Transferors), to
Roman Cherstvov and OBK Project, LL C (Eug ene Alekseychenko and Oleg Elyutin, Manag ing
Members), the propo se d purchasers of Penn 17 (Transferees); and that such approved
transfer, and the City's execution of the proposed Amendment No. 3 be further subject to
Transferees' satisfaction of the conditions set forth in Resolution No. 2.
Finally, t he Administration recommends that th e Mayor and Com m ission waive by a 5/7ths vote,
the formal competitive bidd ing requ irements, finding that such waiver to be in the bes t in terest of
the City, and authorizing the City Manager, or his designee, to negotiate and execute an
agreement with Halloran Construction Inc., in an amount not to exceed $250 ,000 to address the
relocation of the kitchen exhaust venting system installed by Penn 17, LLC .
BACKGROUND
On January 24 , 2013 , the FCWPC recommended in favor of the following re-negotiated Lease
terms, as proposed by staff:
1) applying one-third (1/3) of the Lessee's existing Security Deposit, representing
$47 ,844 , toward Base Rent owed for the month of November, 2012 ;
2) deferring $8,474 for Common Area Maintenance (CAM) for November, 2012 , and
Base Rent plus CA M for December 2012, leaving a balance in the total amount of
$64 ,7 91 (Back-Due Rent) to be repaid in twelve (12) equal monthly installments ,
commencing in January 2014 and ending in December 2014;
75
Redevelo pment Agency Memorandum
Penn 17, LLC -Retail Lease Amended Rent Schedule
June 5, 2013
Page 3 of 8
3) granting an abatement of 50% of the Base Rent and Common Area Maintenance
(CAM) due for the six (6) month period commencing January 2013, through July 20 13;
4) granting a deferral of fifty percent (50%) of the Base Rent and CAM for the six (6)
month period , commencing July 2013 through January 2014 ("Deferral Period "), to be
repaid by the Lessee in twenty four (24) equal monthly installments, commencing in
the sixth year of the Lease Term and ending on the last day of the seventh year of the
Lease Term;
5) reimbursement of the Security Deposit amount applied to Back-Due Rent, in the
amount of $47,844, to be repaid in twelve (12) equal monthly installments,
commencing in the fifth year of the Lease Term and ending on the last day of the fifth
year of the Lease Term.
A schedule reflecting the revised rent schedule, as recommended by FCWPC, is included as
Exhibit "A" to this Memorandum.
The FCWPC also requested that any agreement with the Lessee be subject to the inclusion of
release language absolving the City/RDA of any liability. As requested by Commissioner Libbin
during the January 24, 2013 FCWPC meeting. Lessee provided the Administration with its
preliminary business plan for re-opening the Leased Premises (which had been closed since
December 2012). Lessee proposed an additional use, a lounge/bar component, which was not
permitted under the Lease . This proposed entertainment use (i.e. which contemplates a
combination of a deejay and live music), is also not a main permitted use in the Civic and
Convention Center (CCC) zoning district, and therefore not only requires City Commission
approval under the Lease, but also approval following a public hearing, as required under
Section 142-362 of the City Code.
On March 13, 2013, the Mayor and Commission adopted Resolution No. 2013-28167 (in
conjunction with RDA Resolution No. 592-2013), which accepted the FCWPC 's
recommendation perta ining to the proposed Amendment No. 3 to the Lease . The City
Commission and RDA also set a public hearing for April 17, 2013, regarding Lessee's proposal
to add an entertainment component as an additional use under the Lease .
During the March 131h discussion, the City Commission again requested that Amendment No. 3
also include: 1) a general release by Lessee waiving any claims against the City/RDA including ,
without limitation, those with regard to the ventilation and to the placement and/or re-location of
the Leased Premises air conditioning units; 2) an additional clause that Lessee admits and
acknowledges that, but for approval of Amendment No . 3, it is in default of the Lease; and 3)
additional language regarding an "expedited" eviction procedure and, to the extent possible ,
including certain waivers of defenses by Lessee. The Lessee was also requested to provide a
general release in conjunction with the City's preliminary approval of the proposed revised rent
schedu le.
As of April 17, 2013, the Lessee had not been able to solidify its concept plan or provide a site
plan, as requested by staff, in time to submit the necessary information for City Commission
consideration at the scheduled public hearing for the proposed entertainment use. Lessee had
met with representatives of the New World Symphony (NWS} and provided staff with a
confirmation letter from NWS, dated March 18, 2013, stating that " ... in the expectation of future
on-going mutual cooperation between your operating staff and NWS to ensure that your
activities do not adversely affect NWS events and Wallcasts, NWS has no issues with respect to
the entertainment license ... " The Lessee expressed concerns with the Planning Department 's
requirement to install a vestibule area within the Premises, as a condition of the proposed
76
Redevelopment Agency Memorandum
Penn 17, LLC -Retail Lease Amended Rent Schedule
June 5, 2013
Page 4 of 8
entertainment component.
At the May 8, 2013 City Commission meeting , and following Lessee 's delivery of an executed
General Release to the City on May 3, 2013, the City agreed to open and continue Resolut ion
No. 1, to allow the City and Penn 17 additional time to resolve the outstanding Lease issues.
However, following the continuation of Resolution No. 1 at the May 8, 2013 City Commission
Meeting , Penn 17 LLC has failed to adequately address the remaining Lease issues, which the
City in its letter to Penn 17 , dated April 26 , 2013, and which were also outlined in the May 8,
2013 City Commission Memorandum (See Attachment "8 " for City 's letter to Penn 17 LLC ,
dated April 26, 2013). Additionally, Penn 17 LLC has failed to pay its May rent and, on May 17,
2013, the City issued a Notice of Default to Penn 17 LLC . As of the date of this Memorandum,
June 2013 Rent is also past due.
PROPOSED TRANSFER OF CONTROLLING INTEREST IN PENN 17, LLC
On May 14, 2013, an attorney representing Roman Cherstvov, who, unbeknownst to the City
(and without the City's required consent of same) became a 50% managing partner of Penn 17
LLC after the execution of the Lease, provided a copy of a "Binding Letter of Intent," dated April
25, 2013 , by and among Penn 17, LLC , OBK Project, LLC . (OBK), a Florida limited liability
company, and Amir Ben-Zion, setting forth the terms of the proposed sale of 50% of the
membership interest in Penn 17 to OBK (See Attachment "C"). As with the prior transfer to Mr.
Cherstvov (which was not consented to by the City), the proposed transfer to OBK requires the
City 's prior written consent under the Lease .
In an effort to obtain more information regarding the proposed transfer, the Administration
requested additional information on Mr. Cherstvov, as well as information regarding the
principals of OBK Project, LLC , Eugene Alekseychenko , and Oleg Elyutin, who are the
prospective bu yers of Amir Ben-Zio n's remaining 50% ownership (The Administration's request
for information is attached as Attachment "D" hereto). On May 21 , 2013, a response was
received from Scott S. Levine (the attorney representing Mr. Cherstovov) which included
information regarding Mr. Alekseychemko's and Mr. Elyutin's background in the restaurant
business (See Mr. Levine 's letter, dated May 21, 2013, attached as Attachment "E").
Notwithstanding th e preceding , and since any transfer of an interest in the Lease (inclu ding the
sale or transfer of a controlling ownership i nterest) requires the City's prior written consent , the
City has: 1) no obligation to recognize the initial, unauthorized transfer to Mr. Cherstvov; and 2)
any future proposed transfer, including the proposed sale of an ownership interest to OBK
Project LLC, would be subject to prior City Commission approval (which approval is at the
Commission's sole discretion).
PENN 17 LLC 'S DEFAULT UNDER THE LEASE
On May 15, 2013, Amir Ben -Zi on indicated to the City that he had no intention of re-opening the
restaurant within the near future, and effectively advised the City of his abandonment of the
Leased Premises (See Attachment "F").
On May 17, 2013, the City provided Penn 17 LLC with written notice (See Attachment "G") of
the following defaults under the Lease (Note: the cure period for each default condition is
shown after each item in parenthesis):
77
Redevelopment Ag ency Me moran dum
Penn 17, LLC-Retail Lease Amended Rent Schedule
June 5, 2013
Page 5 ot8
1. failure to pay rent for the month of May, in the amount $30,130 .00, which was due on
May 1, 20131 (five day cure period);
2. fa ilure , under Section 3.5 of the Le ase, to maintain Lessee's business on the Leased
Prem is es open for bus iness to the public, fully fixtured, stocked, and staffed (30 day cure
period);
3. in violation of Section 5.6 of the Lease, a lien was recorded against the Premises by
A&P Air Conditioning (dated December 12, 2012, and recorded in O .R. Book 28396,
Page 3630 of the Publ ic Records of Miami-Dade County, Florida ; hereinafter referred to
as the "A&P Lien "), in the amount of $73,693. A&P has also filed suit against the City
(the "A&P Lawsuit ''), demanding payment of the aforestated unpa id sum (15 day cure
period);
4. despite prior written notice from the City, failure to provide the City with evidence that a
prior claim by Cors-Air, in the amount of $3,001 .92 (the "Cors-Air Claim"), has been paid
(15 day cure period); and
5. despite prior written not ice from Ci ty, and as required under Section 5.2(n) of the Lease,
failure to provide the City with evidence that Lessee has deposited, and/or otherwise
maintained, th e minimum required $50,000 Construction Depos it in the Lessee
Construction Fund (as such term is defined in the Work Letter and Escrow Agreement,
which was incorporated into, and made a part of, the Lease) (30 day cure period).
The prior unauthorized t ransfer to Mr. Cherstvov, and the proposed transfer to OBK, if not
approved by th e City, also re prese nt potential add it ional events of def au lt under the Lease. As
of t he date of this Memorandum, Pen n 17, LLC has failed to pay its Ma y 2013 Rent within the
stated cure period; Rent for June 2013 will be on June 10 . Additionally, Penn 17 has failed to
cure the defaults in Item Nos. 3 and 4 above within the resp ective cure periods.
At this time, and in light of Penn 17 LLC's multiple uncured defaults, the City has the right to
declare the Lease in default and proceed to avail itself of any and all avai lable remed ies under
su ch Lease, includin g re -tak ing possession of the Leased Premises .
NEGOTIATIONS WITH PROPOSED NEW PURCHASERS/TRANSFEREES
Without waiving any of its rights under the Lease (as a result of Penn 17 LLC 's default), on May
29, 2013 the City Administration met with Mr. Cherstvov, and the principals of OBK Project LLC ,
Messrs . Mr. Alekseychenko 's and Mr. Elyutin 's, and their respective counsel. As an alternativ e
to the City's proceeding with the def au lt aga inst Penn 17, the proposed new
PurchasersfTransferees propose the following, in exchange for the City Commission's appro val
of the proposed transfer under the Lease (to Transferees), and approval and execution of the
proposed Amendment No. 3 (including the new payment schedule that was recommended by
the FCWPC and approval by the City Commission on March 13, 2013):
1 The aforestated rental amount represents 50% of the May rent originally set forth in the Lease . The City Commission's adoption
of Resoluti on No. 2013-28167 recommended approval -subject to and contingent upon the City Commission's subsequent
approval of a proposed Amendment No.3 to the Lease-of a 50% rent abatement, from January 13, 2013, to July 12. 2013. Since
the City Commission has never finalized its approval of Amendment No. 3 to the Lease. and has therefore not finalized its approval
of t he more favorable rev ised rent abatement schedule, the City has, to date, held off on demanding the current total rent due
(absent the City Commission's final approval of Amendment No. 3 and of the revised rent abatement schedule), of $342.,074.61 (th e
full amount rent due th rough May 30, 2013) by, notwithstand ing the preceding, reserves any an d all rights to reclaim the FULL
amount of rent due und er the Lease .
78
Redevelopment Agency Memorandum
Penn 17, LLC -Retail Lease Amended Rent Schedule
June 5, 2013
Page 6 of 8
1. payment of the requested rent for May and June 2013, in the amount of $60,260.00 ,
(Th is is based upon the rent payment schedule set forth in proposed Amendment No . 3
to the Lease );
2. re -pa yment of the remaining balances of Rent ($95,687.50), CAM ($16,948.00) and
applicable sales tax ($7,884.48) for the months of November 2012 and December 2012,
which total $120,519.98;
3. deposit of the minimum required Construction Deposit balance , in the amount
$50 ,000.00, into the Lessee Construction Fund, under the Escrow Agreement;
4. release of the A&P Air-Conditioning lien, and or the posting of $73 ,693.00 in an escrow
account to cover payment of this lien ;
5. proof of payment to Cors-Air, in the amount of $3 ,001.92 ;
6. payment for the relocation of the air conditioner units to the roof of the parking garage .
7. Contractor's Affidavit from Halloran that there are no other outstanding liens or claims for
labor , materials , or equipment.
Mr. Levine has confirmed that funds, totaling $157,000.00, have been deposited into his trust
account and will be released and wired to the City upon the City Commission's approval of the
proposed transfer to Transferees. In addition, funds for the June rent payment, in the amount of
$30,130.00, shall be deposited into his trust account during the week of June 3, 2013.
Assuming the City Commission is satisfied with the due diligence information which the
proposed PurchasersfTransferees have provided to the Administration. approval of the
proposed transfer would be in the best interest of the City. The proposed
Purchasers!Transferees are proposing more favorable terms, in that they are agreeing to pay
the balance of Rent and CAM payments owed for November and December of 2012; pay the
past-due May (and June) 2013 Rent; and pay all known and unpaid lienors; all for a total
add itional value of $257 ,474 .90. The Transferees have the financial ability to cure all the
existing defaults under the Lease , as well as the experience to open and run a restaurant
business. This is an opportunity for the City to save the expenses associated with securing a
new Lessee, which expenses could include real estate commissions, plus a minimum of six (6)
months of rent loss.
VENTILATION SYSTEM RECONFIGU RATION
On August 17, 2012, as the build-out of Cooper Avenue was nearing completion, the City was
contacted by the New World Symphony (NWS). which expressed major concerns over the
venting locations of the Lessee's kitchen exhaust and steam vent from the dishwashers. which
both direct into the service alley between the Garage and NWS. The NWS believes the kitchen
exhaust could potentially permeate the performance hall every time the loading dock doors are
opened (which are directly opposite the kitchen exhaust vent).
Following an extensive series of meetings with representatives from the NWS and the Lessee 's
management and design team to figure out options for mitigating odors emanating from the
79
Redevelopment Agency Memorandum
Penn 17, LLC -Retail Lease Amended Rent Sched ule
Ju ne 5 , 20 13
Page 7 of8
exhaust venting, the NWS instead demanded that the City and Lessee explore design
alternatives for redirecting the kitchen exhaust in its entirety, away from the alley. Although the
discussions centered on the fact that the City could not yet know whether or not there was a
problem, in an abundance of caution the City authorized the Lessee to direct his architect to
develop several alternatives to address the NWS concerns.
On September 10, 2012 , the City entered into a Letter Agreement with the Lessee pertaining to
the engagement of architectura Veng ineering services , at a not-to-exceed cost to the Ci ty of
$25,000, in order to develop conceptual design options and preliminary prici ng esti mates to
modify the exhaust venting system for the City's consideration and approval; and further to
include services for the preparation of detailed plans and specifications (including any layouts,
architectural, mechanical, structural, electrical and other plans, drawings and construction
documents in sufficient detail to obtain any and all appropriate regulatory permits}, as may be
reasonably required by the City's Building Department in order to process and review Lessee's
permit application for such modification as approved.
Subsequent to the opening of the Cooper Avenue restaurant it was determined that there is
odor in the alleyway between the garage and concert hall. While it is not known if the odors
would permeate the inside of the performance ha ll, in order to address a potential negative
impact the Administration suggest that the Commission consider relocating the vents.
In an effort to mitigate this situation, the Administration identified savings from the original
construction budget of the Pennsylvania Avenue Garage (RDA Fund 365) for the relocation of
the ventilation system. The City Commission adopted Resolution No. 2012-28067 in
conjunction with the Redevelopment Agency's (RDA) Resolution No. 590-2012.
The City subsequently contracted with TLC Engineering for Architecture (TLC) to review the
design of the ventilation system , iss ue a report with constructio n cost estimates and alternative
designs to relocate the ventilation system exhaust termination point to the Pennsylvania Avenue
Garage vehicle exit. The alternatives were reviewed by the City, NWS and Ha ll oran
Construction Inc (Halloran) who was the contractor for Penn 17, LLC for the restaurant build
out. All parties agreed with the design recommended by TLC, which included carbon filter
scrubbers.
Halloran will be contracted by Penn 17, LLC to relocate the air conditioning compressors from
its current location to the roof of the garage. The ventilation system improvements will take
approximately eight (8) weeks to manufacture, deliver and install. In an effort to expedite the
work and have the restaurant re-open , the Adm i nistration recommends the Mayo r and
Commission , and Members of the Redevelopment Agency , waive by a 5/7ths vote, the formal
competitive bidding requirements, finding that such waiver to be in the best interest of the City,
and authorizing the City Manager, or his designee, to negotiate and execute an agreement with
Halloran Construction Inc., in an amount not to exceed $250,000 to address the relocation of
the kitchen exhaust venting system installed by the Pennsylvania Avenue Garage Retail
Lessee, Penn 17, LLC. Securing the services of the existing Contractor would be more cost
effective since Contractor is already familiar with the development and therefore can expedite
the completion of the final modifications, allowing for an earlier opening date.
RESTAURANT CONCEPT
Attached is a pro-forma for the restaurant concept proposed by Penn 17, LLC, if the transfer is
approved by the City Commission.
80
Redevelopment Agency Memorandum
Penn 17, LLC-Ret ail Lease Am e nded Re nt Schedule
June 5, 2013
Page 8 of8
CONCLUSION
The Administration recommends approval of Resolution No. 1, approving Amendment No . 3 to
the Retail Le ase Agreement by and between the City, the Miami Beach Redevelopment Agency
(RDA) (as Landlord}, and Penn 17, LLC (as Lessee ); which Amendment includ es terms and
conditions for a proposed rent abatem en t, as approved by the Finance and Citywide Projects
Committee (FCWPC); and also includes the approval of an entertainment use on the Leased
Prem ises.
Prior to , and as a condition to , approving Resoluti on No. 1, however, the Administration
recommends that the RD A first approve Resolution No. 2, which approves a transfer under the
Lease in the controlling owne rship interest in Penn 17, LL C, from Amir Ben ~Zion and Roman
Cherstvov, the current managers/members of Penn 17 (Transferors), to Roman Cherstvov and
OBK Project, LLC (Eugene Alekseychenko and Ol eg Elyutin, Managing Members), the
proposed purchasers of Penn 17 (Transferees); subject to and conditioned upon Transferees'
satisfaction of the conditions set forth in Resolution No. 2 (which should also be satisfied prior to
the City's execution of Amendment No. 3 to the Lease ).
Finally, the Administrati on recommend s that the RDA waive by a 5/?ths vote, the form al
competitive bidding requireme nts, finding t hat such waiver to be in the best interest of the City,
and authorize the Executive Director, or his designee, to negotiate and execute an agreement
with Halloran Construction Inc., in an amount not to exceed $250,000 to address the relocation
of the kitchen exhaust venting system installed by Pe nn 17, LLC.
JLM\KGB\MAS\GT
Attachments:
A -April 26 , 2013 Letter to Penn 17 LL C outlining deficiencies
B-May 14, 2013 Em ail from ScottS. Levine, Esq. and Binding Letter of Intent
C ~May 14, 2013 Email to ScottS. Levin e, Esq., requesting ad ditional inform atio n
D-May 21, 2013 Letter from Scott Levin e, P.A.
E-May 15, 201 3 Email from Amir Ben-Zion
F-May 17, 2013 Default Letter to Penn 17, LLC
G -May 24 , 2013 E-mail from Scott Levine , Esq. to Kathie Brooks
T:\AGEN DA\2013\June 5\Penn 17 RDA Memo 06052013.docx
81
Jch:.t.4:tUIJ
I' en n 17. LLC Rent Schedule
lease Commencement: October 13.2011
Ltqsc Yew;2
01/13Jl3
02113/13
03Jl3/13
04/13113
05/13/13
06/13/13
07/13113
08/13/13
09113113
Total:
Ltqso Ytor; 3
. -- . • .. , r -. ·--...!..
11113/13
12113/13
0 1/1 3/1<4
02/13/14
03/13/14
04/13/14
05/13/14
06/13/14
07/13/1<1
08/13/14
09/13/l4
Total:
least Year: 4
Page 1 of2
11/13!14
12/13/14
01113/15
02/13115
03/13/15
04/13/15
05/13/lS
06/13115
07/13115
08/13/15
09/13115
Total:
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Base Rent
47,843.75
47,843,75
47,843.75
-47.843.75
47.6~3 .75
47.843.75
47.643.75
47.843 ,7 5
47.843.75
430,59!.75
Bose Rent
49.279.06
49.279 .06
49,279.06
49 .279.06
49.279.06
49,279.06
49.279.06
49.279.06
49.279.06
49,279.06
49.279.06
49.279.06
591.348.72
lose Rent
50.757.43
50,757.43
50,757.-43
50.757.43
50,757.43
50.757.~3
50,757.43
50,757 .43
50.757.43
50,757.-43
50.757.43
50,757.-43
60?.089.16
'EXHIBIT A
Rent Commencement: April 14.2012
Repayment CAM
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.-474 .00
$ $ 8.-474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8,47~.00
$ $ 6.474.00
$ $ 76.264.00
Repoyment (1 and 2) CAM
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8.474.00
$ 8.057.00 $ 8.-47.(,00
$ 8,057.00 $ 6.474.00
$ 8.05 7.00 $ 8.474.00
$ 8.057.00 $ 8.474.00
$ 8,057.00 $ 8,474.00
$ 8.057.00 $ 8.474,00
$ 8,057.00 $ 8.474.00
$ 8.057.00 $ 8.474.00
$ 8.057.00 $ 8.474,00
s 80.487.00 s 10U88.00
Repoyment ( 1 ond 2) CAM
$ 8.057.00 $ 8,474.00
$ 8.057.00 $ 8.-474.00
$ 6,057.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.1>58.00 $ 8.474.00
$ 2.658 .00 $ a474.oo
$ 2.658 .00 $ 8,47~.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474 .00
$ 2.658.00 $ 8.474.00
$ 48 ,0 93.00 $ 101.688.00
.tiQill;
(II Repayment of remaining Nov/Dec 2012 bolonce($6-4,7?t)
(2) Repayment or July 2012 and Augusl2012 tent ($95.683.00) pet
econd Amendment
(3) RepCJ'(711ent of security deposit (~7.84~)
(4) Repayment or July 2013 lhlough December 2013 deletred rent
($171.106.23)
Current Proposed
Rent Rent loto.l M1>nthly Total Monthly
Abcrteme nt Deferment Payment Poyment
$ (28.158 .88) $ $ 56.317.75 $ 28.158.87
$ (28.158 .88) $ $ 56.317.75 $ 28.158.87
$ (28.158 .88) $ $ 56.317.75 $ 28.158.87
$ (28, 158.88) $ $ 56.317.75 $ 28,158.87
$ 128.158.88) $ ~ 56,317.75 $ 28.158.87
$ 128. 158.88) $ $ 56.317.75 $ 28.158.67
$ $ 128. \58.88) $ 56.317.75 $ 26.156.87
$ $ 128. 158.88) $ 56,317,75 $ 28,158.87
$ $ (28,158.88) $ 56,317.75 $ 28.158.87
$ (16U53.28) $ (64.476.64) $ 506.859.75 $ 253,42P.43
Cutr•nt Propos•d
Rent Rent Total Monthly Toto! Monthly
Abatement Deferment Payment Payment
$ $ (28.876.53) $ 60.411.06 $ 31.534.53
$ $ (28.876 ,53) $ 60,411.06 $ 31,534.53
$ $ (28.876 .53) $ 60.411.06 $ 31 ,534.53
$ $ $ 65,810.06 $ 65.810.06
$ $ $ 65.810.06 $ 65,810.06
$ $ $ 65.810.06 $ 65.810.06
$ $ $ 65.610.06 $ 65.810.06
$ $ $ 65.810.06 $ 65,810.06
$ $ $ 65.810.06 $ 65.810.06
$ $ $ 65.810.06 $ 65.810.06
$ $ ~ 65.810.06 $ 65.810.06
$ $ $ 65.810.06 $ 65,810.06
s $ (8U29.59) $ 77 3,523. 72 $ 686,894.13
Current Proposed
Rent Rent Total Monthly Tolol Montl\ly
Abdlement Deferment l'ayment l'oym.ent
$ $ $ 67.268.43 $ 67.288.43
$ $ l 67.288.'13 $ 67,288.43
$ $ $ 67.288.43 $ 67.288.43
s $ $ 61.869.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 1>1.889.43
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61.889A3 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61 ,889.43
$ $ $ 61,889.43 $ 61.889.-43
$ $ $ 75a.&70.16 s 758,870.16
EXHIBIT A
82
EXHIBIT A
Jan :l4 ~u 1;,
~
(II Repayment olremalnlng N<>Y/Dec 20 12 bolonce ($64.79 11
(2) Repoymenl of My 2012 and .twgvsl2012 renti$?.5Ma001 per
~cond Amendment
(3) Repayment of secl>rlly deposll fl•7.~1
(4) Repayment of Juty 2013 throu gh Dece mber 2013 deferred rent
($171,106 .231
~enn I 7. LLC Rent Schedule
Lease Commencement: October 13. 2011 Rent Commencement: Aprtll4, 2012
current ~1oposed
l.lfillll::l!:!!£~ Rent Rent Toto! Monthly Total Monlllly
lose Rent Repayment (2 anc13) CAM Abatement Deferment Payment Payment
.$ 52.280.15 s 6.645.00 $ 8.474.00 .$ .$ $ 63,412.15 $ 67.399.15
11/13/15 $ 52.280.15 .$ 6.645.00 $ 8,474.00 $ $ $ 63.412.15 $ 67,399.15
12113!1 5 .$ 52.280.15 $ 6.645.00 $ 8,474.00 .$ $ $ 63.412.15 $ 67,399.15
01/13/16 $ 52.280.15 $ 6.645.00 $ 8.474.00 $ .$ $ 63,412.15 .$ 67,399.15
02/13/16 $ 52.280.15 $ 6,645.00 $ 8,474.00 $ $ $ 63.412.15 $ 61.399.15
03/13/16 $ 52,280.15 .$ 6,645.00 $ 8,474.00 .$ $ $ 63.412.15 .$ 67,399 .15
04/13/16 .$ 52.260.15 $ 6.645.00 $ 6.474.00 .$ $ $ 63.412.15 $ 67.399.15
05/13/\6 $ 52.280.15 .$ 6,645.00 $ 6.474.00 .$ $ .$ 63,412.15 $ 67 .399.15
06/13116 $ 52.280.15 $ 6.645.00 .$ 6,474.00 .$ $ $ 63.412 .1 5 $ 67.399.15
07/13/16 $ 52.280.15 .$ 6.645.00 $ 8.47 4.00 $ $ $ 63.412.15 .$ 67.399.15
08113116 $ 52,280.15 $ 6.645.00 $ 8,474.00 $ $ .$ 63,412 .1 5 $ 67.399. I S
09/13/16 $ 52,280.15 $ 6,645.00 $ 8,474.00 $ $ $ 63.~12.1 5 .$ 67,399.15
Total: $ 627.361.80 $ 79 ,740.00 $ 101,68&.00 $ s $ 760.945.80 $ 808,789 .80
Current l'ropo1ed
1.1111 YI!IC 6 !tent Rent Total~thty Total Monthly
lase Rent Repayment {4) CAM Abatement Defe rment Payment Payment
$ 53.848.56 $ 7 ,129 .~3 $ 8A74.00 $ $ $ 62.322.56 $ 69 .4Sl.99
11/13/16 $ 53.848.56 .$ 7.129.43 .$ 8.~74.00 $ $ $ 62.322.56 .$ 69,451.99
12113/16 $ 53,848.56 .$ 7.129.~3 $ 8,-4 74.00 .$ $ $ 62.322.56 $ 69,451.99
01/13/17 $ 53.848.56 $ 7.129.43 $ 8,474.00 $ $ $ 62.322.56 .$ 69.45 1.99
02/13/17 $ 53,848.56 $ 7.129 .43 $ 8.~7 4.00 $ ~ $ 62.322.56 $ 69,451.99
03/13!17 $ 53.648.56 $ 7.129.43 $ 8,474.00 $ $ $ 62.322.56 $ 69,451.99
0 .. /13117 $ 53.846.56 .$ 7,129 .43 $ 8.474 .00 $ $ $ 62.322 .56 $ 69,451.99
05/13/17 $ 53,848.56 $ 7.129 .43 $ 8.4 74.00 $ $ $ 62.322.56 $ 69.451 .99
06113!17 $ 53.848.56 $ 7.129.43 .$ 8,474.00 $ $ $ 62.322.56 .$ 69,451.99
07/1 3117 .$ 53.846.56 .$ 7.129.43 $ 8.474.00 $ $ $ 62.322.56 $ 69,451 .99
08/13/17 $ 53,846.56 $ 7,129.43 $ 8.474 .00 $ $ $ 62.322.56 $ 69.-451.99
09/13/17 $ 53.848.56 $ 7.129.43 $ 8,474.00 .$ $ $ 62.322.56 $ 69.451.99
Total : $ 646.1&2.72 $ 85.653.16 $ 101 ,488.00 s $ $ 747.870.72 $ 833,423.88
Current Propo$ed
L.lall :!IHIG l R_,nt Rent Total Monlllly Total Monthly
Bose Rent Repayment {4) CAM Abolement Deferment Payment Poyment
$ 55,464.02 $ 7,129.43 $ 8,474.00 $ $ $ 63.936 .02 $ 71.067.45
11113/17 $ 55.464.02 $ 7.129.43 l 8.4noo $ $ $ 63.938.02 .$ 71.067 .45
12113/17 $ 55.464.02 $ 7.129 .43 $ 8,474.00 $ $ $ 63.938.02 $ 71.067.45
01/13118 $ 55.464.02 .$ 7,129.43 $ 8.47~.00 $ $ $ 63,938.02 $ 71,067.45
02/13/18 $ 55.464.02 $ 7.1 29.43 $ 8,474 .00 $ $ $ 63.938.02 $ 71.067.45
03/13118 $ 55,464 .02 .$ 7.1 29.43 $ 8,474.00 .$ $ $ 63,938.02 $ 7 1.067.45
04/13/18 $ 55.-464.02 $ 7.1 29.43 $ 8.474.00 $ $ $ 63.938.02 $ 71.067.45
05/13/18 $ 55.4 6 4.02 $ 7.129.43 .$ 8,474.00 $ $ $ 63.938,02 $ 71 .067.45
06!13/18 $ 55.464 .02 $ 7.129 .43 $ 6.474.00 $ $ $ 63.9!38.02 $ 71,067 .45
07/13/18 $ 55,464.02 $ 7,129.43 $ 8,474.00 $ $ $ 63.938.02 $ 71.067 .45
08/13/16 $ 55.464.02 $ 7,129.43 $ 8.474.00 .$ $ $ 63.938 .02 $ 71.067.45
09/13/16 $ 55.464.02 $ 7.129.43 .$ 6,474.00 $ $ $ 63 .938.02 $ 71.067 ,45
Toto!: $ 665.5' 68.24 $ 85.553 .16 $ 101 ,688 .00 $ s $ 7 67.~&6.24 s 852,809 .40
Poge2of 2
83
•• C9 MIAMI BEACH
Clry of Miami hach, 1700 Convanllon C.nter Drive, MlamlB&ocn, Florldo 33139, www.mlamlbeachR.gov
REAL ESTATEt HOUSING & COMMUNilY DEVELOPMENT
Tel: (305) 673-7000 -(305)673-7033
BY CERTIFIED MAIL RETURN RECEIPT BEQUESTED
Aprif 26, 2013
Amfr Ben Zion
Managing Member
Penn 17, LLC
1661 Pennsylvania Avenue, Suite 6
Miami Beach, Fl3~139 .· . . · ·
Copy sent via electronic mall to:
pmlr.ben~71on@fcsny.com
shaj@coop~ravenue.co~ .
. I
. . ·. . .....
Re: Leas' Agreem.int (th~ ··~ea .... , betwien' the. c~ ~f ~ia~l Beac~, F.l.orldaJ the
Mlamr .Se.ach ·R.edev .. lopmant Agency (hereinafter .coUect(vely .referred~ is
"Landlor:d'~). and Penn 17, 1:-~C ("T~n)an~"), lnv~Mng th.e Jeaae of approximately
7,855 sq~are feat of .ground flpor retail space at the P~rinayJv~nfa Avenue GJJ~ge')
1661.Pennsyrv~nra Avenue, Miamr Beach, Florid-("Premises") · . . . . . . .. . . : .
Dear Mr. Ben-ZJon: . . '
As you .rnay be aware, the Public Heaii.ng that had originally be~n scheduled before the City
Cofnml$sl,on .on Aprll17., 2013,.tp consJqer a proposed ch~nge .of use to the PremJses, as well
as to oon~ld~r th.e proposed Am.e'!'l.dmJ3nt No. 3 . .to th.e Lease, was re--scheduled to be heard at
the City Com'inl$slon tne.etlng on· May 8, 2013. This ·was due to the factthat you were unable to
comply .. wltl1 :c~rt~il1 · qutst~rydlng . .J~sues .which needed. to b.~ res<?lved prior to 'the . City
Commission's consideration of the aforestated Items. As of 1he date of this l~tter, these same
Issues· remain outstanding, a~ follows: . . . . . .
• ·.. *:
1. The city rogufres :~ reccir~ed cppy of .an ,oraer ~Y th.e ~ourt,. ~lsr:nlssing with prejudice ART
Dr}lwall's· h:~wsuJt _agaln.stth.~ _City. . . · . · · . .·: ·. '.. . · : .. : · . ·-: · · . · ·
2. The de~~~.~.~·c,l~s· In: ·.T~~~~t·~. C.on~tr~cli~n ·Fund, ~rlgl.~~riy ·.lden~lfied In .the City's
correspondence, dated.Mpf.Qh 2(3. 201~ {a copy of which Is atta.che~ as E~hlbft ~A":Ilereto), ~5611
need to .be ?~s_ol~e.d. ~pec!:fl.9a,i ly; t_he ~ity h.a~ not .yet ~greed to accept _the 'eoples ·or
chec~e/payf'!lents made .frort~·Tenan.t's Qwn c6nstruction. ~ccount (provided to .us by Teryant's
. Escrow Agent in 1ts written response to ~he .City, datedApril 3, 2013), as satisfying the $1 Mllffc;m
Ten~nt .~mprovemE!mt. tnr~shold requ,irement specified ln . the ·wo.rk L~tter and .t;acirQw
Agreement. · · , . . · .. · · · . , · ·
3. fn the .City's sam~· co~spond~n~ .(referenced In Item 2 above), we informed you that the
Tenant's Construetfon Fund was ·not tO be reduced to les~ than $50,000, unUI such tlme that
Tenant'~ work .has oeen substa,ntlal!Y compl$t~d, a~ determined by th:e .LP.ndlord, In Irs. s~la arid
reasonable di~cretlon. . . . · .. ··~ . : ... . . .... .· ·. . . ' . .
. . ... ·
4. Pursuant to the Aprll3, 2013 response from Tenant's Escrow Agent (attached as Exhibit "B"
hereto), th~ T9nflnt _.wa~ to deposit_ $64,828,921nto. the Tenant Construction Fun~ by Aprll15,
2013, to ~ver twt>'(2) .out~t~ri(l)ng claim notices, as well as ·the original Notice of Uen flied by
ART Drywall, noted as follows: · · . . · · · ·.
FXHIBIT B
84
Mr. Amlr Ben Zion
Aprf/26, 2013
Page2of3
Date Contractor/Supplier
10/27/11 Cors~Air
12/14/11 Art DIVINall
01/24/12 MP Flrestop Corp
Amount Correspondence
$ 3,001.92 Notice of Non-Payment
$53,927.00 Notice of Non-Pavmant
$ 7 900.00 Notice of Uan
As stated Jn Item No.1, the City requires that the ART D~YtNSIIIIan (which has now resulted In
ART's flUng of a lawsuit against the City), be satisfied via an Order of dismissal. We will require
satlsfactlon of liens and releases for the other two (2} liens (Cors~Air and MP Flrestop Corp) .
.5. As a condition of the.City's apptoval of Resolution No. 20.13-28167 {attached as Exhibit •c•
hereto), Tensl)t verb~lly agree~ at the March 13, 2013 City Commission mee11ng to execute a
General Re~ease, attached as ~xhlbft "D" hereto, waiving any and all claims against the City
Including, without limitation, thos~ with. regards to the kitchen v~ntllation and .relocation of the air
condlfJonlng system. . . .
6: Site plans were to be submitted to the City prior to the Public Hearing ln connectJon with
Tenant's proposed entertainment use. The plans were to reflect certain condiUons requlr~d by
the Plannlr:tg Department, attached as Exhibit ~e· hereto • . .
It Jslmperatlve that you either comply with or, where noted, provide the City wHh the Information
requested In, Item Nos. 1-6 above, by no taterthanAprlJ30,2013, sothatwemayadvlsethe
City Commission $CCOrdlngly, and determine whether to proceed wi~h the May 8, 2013 Public
Hearing and cons!dera.tion of Amendment No.3. Failure to do so may result In the proposed
May 8, 2013Jtems being wrthdrawn from the City Commission meeting agenda, an.d In Tenant
beln.Q placed In d~f~ult. of the j..ease, which remedies may Include the return. of the Premises to
the City; -t~e acceleration of rent due and payable through the remain in g term of the Lease,
Including all rent d~ferra,J amounts to date; the Initiation of legal proceed ings; a ~d .the rocov~ryof
any oos~ and re.~sQ!'la.~le, ~~r~ey"s ff)les resulting therefrom. · . .· ·: . · · . .
PLEA~E, GO:V.ERN ~OUR$EL.F ACCORDING~ Y
s;~;z ·.: ,: .· ' ...
Kathie G. Brooks ·
........... · ..
:. :. : .. ;. • ....... I.
·: .
Assistant City ¥a~ager
AP:KOB
Attachments
85
,,
Mr. Amlr Ben Zion
Apd/26, 2013
Pags 3of3
Copies to:
Mr. Steven E. McNeff
Reglster8d Agent
Penn17, LLC
45 N.E. 41 street
Miami, FL 33137
Mr. Am lr Ben·Zion
585 N.E.-58th Street
Miami, FL 33137
cc: Jfmmy L. Morales, City Manager
Jose Smith, City Attorney
Raul Aguila, Chief Deputy City Attorney
.. Anna Parekh, Director of.Housing/Communlty Development
Kent 0: Bonde, Interim Leasing Specialist
F:\$AIJIAI1et\Pennaylv1nle Ave Garage Laasea\Penn 17, LlCIPenn 17 -Pen n 17 OUillllndlng laauH 04-26-.2013
..
.·
86
I '
l
J
··'
... ., . (
MIAMI BEACH
Cby el Miami ... 1100 Con\'llllfon Clnltf Drfw. IIJIIJ!llllat.h, Aorlifa a31J~, www.mtamlbecu:f4sov
• REAl. E$T.~Tf, HOUSING & COMMUNnY DM\OPMENT
T.t: 1305J 6mt93 ... posJ 6.7i?03J
Mareh 26, 2013 .
EXIi/Sif A
Mr. Amfr Sen Zfon
Mana.glng Member
Penn 17, LlC.
r Jeffrey A. Rj'nor, Esq. "
1881 PeMsylvanta Avenue, Sulte 8
Mlfllnl, Rynor, Alfamaky & Toland, pJ!/.
3D1 Arthur Gorlfrey Road, PH
Miami Beach, FL 33t40
· Mlamf Beach, Ft.33139
· . .' ~PY Nil! vlu.fecfronlo mall, raoelpt raqueated 10:
RE:
.. '
. · .... -.. ' . ·'>IJ!!fr.blb:z!on«Mgenv.m: amlntllfOBnv.m:
• • I • pllo0008raVtoUII .OOOO
. . jiR¥.no~~~!·oOiij .
Woi'Jc ~-r and ~crow As~em,~. (Work ·Le~rj'_ .by •nd bet~v11n the . City of Mllm~. Be1ch, Ml1ml J.~ach. ~erJeve~opment At.encv (colllotlvefy •&.tndlon1"), lnd
Pe.nn ''• .UC (''JeQ•nt~, 1nd Mltranl, Rynor, Adam.ak,v I Jof•nd, PA f*Eacrow
Agent"), «fated """uat ~9, JOf1 . · · · ·. . ·: ·. . ·
•,' o '" • 1 • • • 0 • o 0
NOTICE OF NON.COMPLIANCE
De1r 811"1:
.. ...
Aa you ·kn~w. :~nd!P~ ~ncf Tenant ·.~ pum.tnt!Y Jt&QoUatlrw a propt)aed Third Amendment to
Le~rte, whfch .Is eoh~cfuled tp be .Pr.ea~nted to the M~Yt!r .Jnd CitY Cpromlulon it.ft.a.I\Orll !71"
m~tl_~., .Sin98, fhro~gho~ .the .. DO~IIe .of :ne.abJiatlon,s ,(VIhJoh .. h~ve . 1noluded . .virl~ua
preaer,lt~.ons :before the . Cftta .fln~noe ~m~ Cltywl4e. ~~Jeota OQm,.mlttee ~o~. moalrece.ntly,
con;raetatlon by the Q.IJY ~~mmJ~~~~n pfth'e proposed ~nl ~bate!'lent.and dafe~l ~cl)eq~l&. at
the .'March 13, .2013 .Qity ~ommls.Sion .meetlrQ}t the :CJty Conim)lsloo has J>'en olear 1nd
conj'falr:tnt that,·.~a~~e ~hl (h' Jiiu~s: b!!Qg ~&Q~~atea,· f:he t'niirt. rll~iJ ~.e q~e1Wf•e .IJ1 good at«n.~l~p ... nd .... ~.-.~ tr~m. ~"-'*'·~It~ ~~, .. f.tl.e p~~ .. .P~'.1elona ·.ti! th• .Leaa.e (n-~t ~ Je~~e Jn :ihe
neQoJlatlo,n~)~ :AccQ.~.fngly, 'fn p"p~Oiflol), ~r ,pres.e.ntstlon Of file JhlM .Amendment if the ~rll
City C.pm,rl.ISJfQn . i'O~trog, ··~e. :City' AdmlnJs~ra~ol\: his ~a.an revieWing ·the ~matni(G ~~-~
tennp t!) .e.n.su~ t!llt Te~td ·has b~Ji 6omp,ylng ~ eame. ·: . . . .· ... ·: : :
• • .:_:··.; •· •. •·• •.• ·:' 1: .. :1 .. :·: · .......... ·: :·. ·: .. ·.· ; . 0 ••• • .: • : '·. ... 0 •
To th~e e.na. tl'\a . .PU,P.o" Qf thfs Notlce 11 ~ advise. you ¢~~ln. ~mpJ!ance.reJat&d .lasuu
refaled to the a~ove-ref$1'(tn~ Wprk ~etfsrwhlch ~qUJ,re your ~edrate ~tte~an •. as fo!!owa: . . .· . .
1. Af!lt?fe .1, ·R~aJjo~ 2. ~ ,jle_ c~y .he~~ ~6~.~c:Oru bf T~~~nt's .~~on.d .deposit lntq .. ~e .'Ji. ~n.ant
Const(~Of.lcm F~ncf, l.n lhe ,in,ount ot$50Q,O.()O. This ~m~~nt ahollld .hav~ pe~n a.e;o~lfe!d.PO pr
before: 45. tJ,ys &1lcst A.t.fgust. 29, ~01 ~ (th~ .Effeotlv~ Q~le Of~e Work. L~tter). 'fhe Eaprow~ent
waa to .have provlde·a ,the City Wlfh ·wrnten: no6~ after reQelpt of t!luOh payment . .f:Jased on the
atateinent N,i:iaf~•d .from . the ~prciw ~ant, dat~d .f.'aroh 1.2, ~013, and fltteche~ "8 t:xhJbij. w
heretp .ft .appears .'t~e :lriJt)~l ..• ~9o.o~p .lth~ f]r$t .hair of the Tenant Cch~truotlon Fund) wa.s
depQafiea lrito th~ :renant 0QOiff110tlon Funf1 (he~Jnafler TCF) on :Sept 19, 2.011. Hcw~ver, fhe
only 't)thet 'daposft made Jnto the 1'0F .ooburred on feJ>ruary '1, ~012, In fhe amount of
$1SOi'T97, leaving a balance due ol$349,203. . ·
. .. .. )
87
{
· Action Required: Within Ieven (T) days of the date rtthla· Notice, Tenant muar provide City
with proal of payment (and deposit rAfh Escrow Agenf) of the remstrq balance due lntD fhe
TCF. FaRure to do fO conaHlutas 1 defauft under the Worfc Letter and, oonsequenlly, the Llaas.
2. M/t:IB f, Section 2 • The TCF was expreasfy lntendecf Dnly to pay amutl ~ard Cosfa• of
Tenant'• con1Wctlon work. No portion of the TCF was to be uud to . ftmd 'Soft Coifs. • ••
aame are defined In AttJcle f, SactJon 2, page 2 of.lha Work Letter. Baed on our review Df
Exhibit •A, •·fbare ara two (2) dlsburaaments that were not approved by tha City that warellled
to pay for ~ma apeclflcatly darJned as Soft Coste as fellows:
Tsble1
Date . CkNo PI VII Amount · Memo
08120112 1687 · Cftv Of Miami Beach Bldg DeDt 12222 92 Permll FYI
08120/12 1688 Cll1_Df Miami BeaCh 'Bida OeDt .. ~8804 .43 ConDIJ!iellW.FIH
I Total 80827.15 . .
· ..
Aoflon iJMJUlt:ed: ln iooo.rdcmoe YAth.Artlole .1, Paragraph.2, 0'1 page 2 of the Work .~r. 'All
Soft Ocita ihall .. be paid .J.& 1nd When Jtue fr.om .Te~~l'.a 4)Wn funds o1her. than the Tenant
Conafru~on Fund.• ·Aooardlngty, th~ lforeata'ec~ Soft Costa, In the t~ount r:sf f8~,827.~5, muar
be repfaoed Jn t~e TOF. . . . . . . .. ·
3. .Baaed Gn the Oity'a re~r:tQIJI~I1 of tf1e TCF, which ~clll.lltlon • attached 11 Exhlbl ~·
hereto~ ~~ :~.l~ng ~~~~nme• ~~-nc~_d: . ·.. . . : · .· ...
(l) As .r! ,~y .S, ~Q1~ th. CUy·;,.fleqfa '~e rePe·lpt of ~q~~~~ .f~r .payment_ {I.,., ln .~ fonn Df
D111w .Request~ ,ipptove~.~Y tfje Cil.v),·tp,.llnp f7~3J266 .. -'Ho~ver;ti;Je TCF.~tement (Exhibit
•A•) .·OJ11Y ·"heats dlsbu111e~anfllp.aim~nta .m.ade by Tenant f.P.tallng -~50,?97, for • -net
dlffe~n.~ .. of . .J7~.~ .. ~· .~Jffe~n.P;t . ;ppe~ri ,to .Jle .fnlhree (3) Dra:N 'Request~· that war:e
appr:Ov.ad.·by ·~~ ~lty, but ~re never tl~~~etJ frpm .tfle .tCFJ .lclfalll,p ,t1~3.19B.841•nd •s na~d Jn T•~r~ ·~ .. ~r_C!W); .~.tipled -W(tn ~I' two ,qf\~Ut~~ p~yn,enf!i, ·rn jhe. smpunt qf $80,~27 •. ~.·fftf~~rtC:e41n tabl~ 1 p(~ls Notl~. . ·.. · :· . . · .. · ·. · .
Tabls .. '2 =
• ~. • • • 0 .' •
J)ite '\ .PIYH Amount M•mo
10/27/11 .Sky Builders 8800.00 Llbor & materfala
12114/11 Halloran Construction 26848.00 Llbo; & malartala ·
01/24/12 Halloran ConetruetJon . 100.64 8.84 Labor a miterlals
Totti · 133.188:14 .. ... .· •\
(II) . f'ura~~n~ .to th'. CIJ~'f ~.ooncJilatlon .. l~ :I;>Ch~bn •a,• 'nd •~.bJ_ect to Tenant'~ coif!pllanoe w1lh
Acfl~o. Items 1 ~md ~ ~Jar$of, the .TCF .•hould retreat a b~lance ot .. $276,733, pending T&ninfa
•ubmfsslon.of ~ny a.ddftl_onif Draw ~equea~ to. be ~pprovsd by tfle Oily. . ·
0 • : •• : • • ·.. : • • • • • : ••• ~ • • • • • _---: .. • • • • 0 •
AddftlP,.nally, you ah,oufd t~l.SQ ~ awa~ tp,._·t Se!Jllon 6.2 (n) of the J,.e~e~ ~reemenf by and
between fl)e .Qity ot Miami Beach, the MISll)l B~ac~ Redevelqpmet1t Agenpy and Penn 17, Lj.C,
dated .September 16, 2011 ·(the . ~Lease~), ip&olfloally requJrea that In no event ihall jhe
Construction Deposft .lnto the TOF .be ·reduoed to lese than $50,000, JJntl l auoh time as the
Tenant's work has been substantia lly comp leted, aa detenn lned by the La ndlord, In Its sole and
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Penn 17, tLC
Msmh 28, IJJ13
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reason~ble discretion; and, lhall. only be refsaeetf up_on Jasuance of a flna~.Cel1lflclfe.of
Occupancy (CO), wfth proof that all penn!ts have been dosed, together with final hn waivers
and .~ntracfofe •f'fldavH re"actln,g that . all oonfractor'a, tul><:ontractotB, labora11 and
materlafmeri .ha~ been paJd In full. . . · ·
At4/Dn RS:flulted: Tenant a~d ~ecrow AQent ahall.provfde written darlfrcatlon, wfthln uwn (7}
days of. the date of_,rs Notice, as to the dlacrttpanc1es between lhe TCF ltatament (Exfllbii'A•J
and till .Clft• IBCQncJIIIIflon Exhibit ~B,; tuch dartflaatlon, conflmtlrliJ that the aforea!ated
bafances re~fnJn the TCF. . .. · · :
tl. .M/o/, ~ ... ~~;;,o~. ·.8 .. · ..... :T~nani..t~I..J~qul(e. Jta . eonflictcr ~ao ._pro~d.~ unconditiOnal
perf~~~ •r~ p~y~en~ ~.nds . ~.verfng the -~'-val~e pf .Tenaru'• ·wo·rk lllaued by • IIJllly
aooepU.bl$ fe:l .laodiQilf .. ,,Safd .bonds .ahaR ,be .Jasued. for earih .-u&oo.ntraotor, QOnftiotor.or m~t-rfJiln:u•.~:furiifa~Jiui mife~af pi' prbVldlng fiibor.~r ~~~~ to ·tna.Pr.eni~4 irld ibali (I) ~.me
Lar)dlotd ••.:in _jd~ltlonal ~'piJge~; :<II) ·b,e Jn .tm -.mou~t. In form -~ .®ntent, and ltaiJea ~Y
auretles, aatlafa~oiy ·t~ t..fldlp,.P i_nd. (IU} 'be In .compflanoe ~applicable _law•. :. · ·.
'' •. :} :· ·~··,r >! : ·; ,:: , •:. ~ .... :: ,' • ~ • ,: .. • ..... :. : : • •, • : ·. • ~ , '. •, ~ ' • ', ·.. • ,
Action /lll!llilr,d: .:reoant.•~~n.pravfde, wftl)fr.ueven. (7) days ottht Cfate ~t;hla .Notlce, C!()plea
of any incl.ill1 pertormanee Jlid payment.bohda _ja requJred.. . . . · . :. . . · ... · ··
5. To da~:·~~.c~-.h~-~ ~r~~:f~~·a,:n.~un~:ti~~ ¢~·(2) ol~l~:nGti~a. •• Wellaa a Notloe
of Lien, ·for fion.Parmet1t of "'oHc '"-~lor m•te~als .related .to Ten~nt'slmpl'OII8menla.11 noted In
Table ·s bel~ . : . -.· · · . . .· · ... , ·. · · . : . · · · ·
Tsbls ~--·.:~ .. >>: _'·· .. :.:.-.::· :: .. : ·. . ..': ·..... .. :.:. · ·
Date .· ·. ·. · Contraotor/SuJ)piJer ~ount . COI'l'HPOMJftCI
10127/11 COrs-Air .::_, ··:· 8,0DU2 · ' Notloe ot ·Hon-Psvment
12f14/11 MDTYWall ·.· 63 927.00 'Notloe of .Non-f'avment
01124/12 ·. '· MP -FireatoD Com 7 900.00 NoUce Of Lien . . •••••• t ' . 0 ••• . .... . . . . . :·:. ·· .. \ · ... ';. :"'·'' ·. ;'._:.·_:,·_:·.:·.. .... . '. :. . .· ·.' . ·.· . ... : ··· .. •, . . ·\ ... ';'; · .... : : ...... : . . . ... . .. ·,. . '
~-~~;1t.:,~l;ft:~~~~!~~~o~:~~tl.~l$~!J0~r~:~~~a~~~~3,ri~~~~~}·::· ~-~ . .,~p.er 10~ XW.P,~.-~lf~r .. ~r)d ,.th~ 'Yt~~ ~~men~. f¥!.c~r~J~Iy, re~~~t. r,nust P.roM~ to t~e. ~Jty,.:WHh{t:J.)Jv.ari '17) -~@YB bt .thf! .~ale .Pt. IJ11a .l.lo}!®, d.ocutn!l'titatlo·r) D'f.payment ·Dr ~r .
fohn m ·~'~f.~~~n :pf ~-~~ta~~!.np·~~ri:iihriLi~-~~~~J~.r,bi~ ~~~~:Vi!:··:·:. .-·: •· · · .· ·._. · · · ·
Agst~~ -~~~,.~~~;~~-;-~~~~~~~ ~ -~~-~: t~n~nt t~~~~ :~~~jrcin .•. hd. pre~~taU~~ ~
A.PtJI) '.bf .the '.Third Amendrpent ;to :the Lease, I (asatn) .emphasize .that thes Cfty :Commtaalon 's "~-~-pohefpor.lo~Jot:~; .. PPi:O~il .Pf ,~;.tglr't;f __ AJi1~n.cttn~ci't,.Wfl!~·we 'lil.t~rid ,to _~·r~~nt ~-~ ·
APr11 _17 •. ~MS, C.Jfy ·qorn~~_slpo -~~~fl{l_g ,. ,p~Cfl~ted !JP.,O~ )tle ·c'Qp_dlUP.fi fllilt 1'~1J&Ilt,·b!Jt fo!' !ta
fall~re .t~ ,pay ren.t )o Jh'-:·~~u~·t; ~Clutre~tiV ·~gulrBfi.-JJ11Cier .. (h~.L,f!ase , 1J Jn gootJa(tuidlng and
free.f(om pef,.Li(t. wlt~ respect t<>. otoar .L~ase proyfefons (lnolu.dfog,.'.WlthoUl bmltatlohJ ·the terms ..
and condltl~.,, qf thaJN~~ ~etter, W}tJqh (a.ln~~r~~d ab .B!l .~~~b~ !o the ·~ease}. ·· : ·· .
It _Is ·.th;~~(o~·.·!~~;~·tiv~~-~·~l :~~~)~o~tj ~-j·, -~de ·.~~ :tity:~~-~~-~rifo~~t~o~: ~~~~~~d · :
herefrt ·lnolu.dll') .~.h>'-. ~ure .1~1~&~~~~a required y ~he cn,y, so Jhat we ;may apvJse th~ .O.H.Y Com.m}asl~n ~~e-n :p~senfb~Q the · Tlllrd .Amen m~tJt} that t~e .renant Is oomplyln_g Wlfh .the
tein'ii .Of the W.ork L~tter. ·Aooord_fngly1 ple.ase resp~nq to tne pity's ·A~Iol'l ~eq~Jrecr.Uema, as_
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Am/r Bsn Zion
Penn 17. U.C
Maroh 2¢ 2013
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ut forth herein, by no later lhan Hvtn (7) daya rrom the data or.thla NotJoe. or ·by April 2. 201S.
Failure to do ao may r&sult In the Tenant being pJactd In defauft under lha Wort Letter and lfle
Lease.
PJaaae govem you11elvea lcaordln,gly.
Sincere~.
~6/)~
AnnaParakh
Dlreclor
AP:ICOB
Attachmante
Co: Katl\le G. Brookl, Interim Cfty ManBQsr
Max Sldsr, .Actfn,g Anlltarrt Cft)' M•naatr
Rl!ul AQuila. Chief Deputy Cfty Attorney
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MITRANI RYNOR
ADAMSKY TOLAND
ATTORN £YS .
EXHfBlT 8
Fort l.lluciMfaft Oflb
24m N~l'llwr u.s. .
AprilS, 2013
w.tcr.PL.SHIII ==.n ~Pamkh, ~~r ~ .
RaQl ~. ~ Chfol.~aty Attomey
1700Qm .. Oil ~J?tfw .
Pourlh PloOr · ·. .
M.IIIDll BeaQb. Florlda 33139
Bll ~~,ju ~f) HlwfMAI
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Cf41 D,/-BMIII,lfllllla,
116 M/llml Buell ~IVIIII]»ttMI ~ltQI (/tplbtqflu tNJIIIDtlHiy
,;pm,4 ~ ~ ~lfOrtD 11114 l'fnn 17, /!JC ~-~ lnvq/v!iw tlt1
Ww IJ/tiJ)~ 7,"665_ ~llllf'I/III_P/fNWid~Df ...miJ
IIJHIN 1!1 P"1~APIIIW GtlfYIIIJ 1661 P~AJIIIUIIJ
· MlluJd B~, Ror/111 {P,Imllq) . . .. : : . . ... .' -. . . . . . . .
DoarMa.~.~~·AaWla! .
11dt ~ niiJt~ to yoittNotloocifN~edatoc! )!irch26.201!. . .. .. . . . . . . · ..
AI .,ou ·~w, tho . T..ni bae :1'~ well · .• uoeis JJl Ble ~--Mmlan Dol!m
~1a~ 1tt iljo 'i'aDaiii ~-tl~-~ ~o ·tho TC!J)ant WBhia to 1D .~ ~-· .... ,. ~· .·lbif .~'u ~i lUI ... ~~od .~ lbd.;.:~~~~-~·to.~~~-~t~~~ .. ®1~"":-:IA iiul-'-' • • • 'des'-,_,__ • that • ~ .....
I 't. .~ .... ~~-~~~to HIJ"~~ .• -~00 .. ~bUS .. · t'4" artlstlo ;ll~·ot ~ln :. ·: J'ho ~~d.out ¢ ~ ~~ ~ ~ ~-~ ~di .Ciabrt tho ~GD:Mt.put Jato t1» .:Paoc. to ~vod tt tom a aaraie ana ptovlc~a
an ifabl~rtihlrth. . · .. · . . . · : · · ..
With~ .fn ~ tbeTt:IIJIIDtllll~ l!J tho -1~ retaiOcf~ u iblklws: . . . . . .
L . AtttOto i, B~on 2. • '.lho ~ }lrovidocla dOpoilt Pt $500.000 em Boptambor
19, 2oil JSDd.f' $15Q,796.82 .4o:Poalt on Febtoar)o~, 2012 ~a iOtaJ of S650,796.U . ·'i'J1D
T~_,pf_d ,;fbr . ~011 . ~~ ~ ~ imouoi..of $1,2~i 614,J.i .io" HaUomn ~on'.ldouo. ~-i~liollt tho.~ pafd $91'1,489.41 ibr~ ecpdpmmrt !1M
~ JM>ita, .The Tfl!Wlt ftlao ;Plfd ~ ~t;lni ~-I ,IOUiid.ays{elm Y,.\f~ pott appto~\Obt $1204~, pfu-~-~~ {.$1 ~Q,OOO) .atid arohfteotutai h ($120,~00).
At~ .tho TOJIIZl1 did 210t dopoiit .tho .Mmldnfng balanoo ot S349,2b3 lt ~
· ·compllod with tho Loal!'o'~ ~t ro.eard.lna 06JWucitlon by payhla tor tho
......
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"!' MITRANI RYNOR Ill. ADAMSK.YTOLAND
· ATTORNEYS · ·
2. A.dldle 1, Sootlo.11 2• -AlthDush IIIII Te.aant paJ4 City at M1llml Beaah
BuUdlq Dopartmollt p~ fllosiDIJ ~ faol, the adcHdanal abob that have
boon qppUocf u Bxh;{bJt ~ to this. latter telJeot tflat the Tenant has paid a.r hard 001fs
beyon(t the alDDUnt orl,stila1ly mto.!Patod m the TC.F. Ocmaoquen1ty, Jho Tcunt "Would
. ' · .P~O .flw the .banJ G04ts that WCII'O JJald ~ tho pocnl, ~~ 1.1 ,011 AI Ji1b.
oonttaoton, ~e ~toWards~ hard aoda, · · · · · . · : : ·
. ; • : . \ . . •' .• · ..• : ..... : ... . • : . . .= ... . . .
J. AUaahoct,plea.sG .~ .. B.ddb.ft.2, dle ctrsbunumem of the 1lltlda. ·
4. . ~~~ ~~ .~~· 3 .... ~··.-~~ lm~ tho ~ ·~ ~~UDder tM
oontraot ad . leted ia ~ 'UJlaondllionill ~ iDd t bonds
are DO\~ ~Jo ~ ~taurlnt& .Jiowpyar, uJpeimittfng &iro~oft u ~
limple Vlsualwpeotlon wlll ooil1Jrm fbat the wast hu bDeD. oomp!oted. . . . •' . ' . ~ -.. . . .
$, · .'J'hoTawlJ wf4 ·do,poslt fnJBOtDw S64, 828.92 by .Apnll5,2013, u It .relate~ Co
tho .~ malma !!fctred to. m )'OUI' J~, lh the meantfmo, tho Tooaat bas ~bean
fD. OQtl!8ot ,~'the .dryWAll comp~ and 4 ~ wWlna to groo ~ an ~n. It
~~~ ~ ~ DOii!PWnt, to ~'bJ,y nsOivo ~ J!latter, It abo\lld be ~led that tho
Tenant dJsputoa tbcao ~~ but Wl\1Mi~ them u IOOilae posalblo. . ·
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EXHIBITC
IU!IOLUTJON NO.., 2013 .. 28167 ...
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peroem (~) of the S.se Rent •nd CAM for the flx..monet perfpd oornmenolnQ Jury 18 ttvouQh
January 12, 2014; _,d 5) pi'OVJcfJlW for N·p~nt by LeUH of the one third eeourfW depoaff. 1nd ,...,.~ntottht Slok•Dut Rent tor November and Dt0ember,2012; in In ~ooord,noewtlh#le
payment aOhed~ attaohad 11 E>lh.lbK •A• Millo ; further utllr; of. a publlo hlaM; by the Qli)'for
Aplfl17, 201 a, regarding LeBHt'l propoaal to add an enferlaJnment component u a naw propdltd
uae on the Leaae Premteea (and •• part of Laaeae'~ ~poaal tD 'rt-brlnd' and l'HJIIll tht
Prlmlatt~ and u required by MOtion 142482 of the 011)' Oode. .
MAYOR
A miT:
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KGB:MS:AP:KOS . .. \ . .
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'IJJillllllnlmUII PrtpamJ By:
Cfty Altomry '1 ().fflu
Clf)l of Mlmnl B•ach
J ?00 Comtlllion C•nlfJT Drt~~~
FoiHth Floor
Miam i B•liCh. Florida 33139
GENERAL RELEASE
As consideration for the Mayor and City Commission of the City o1 Miami Beach, Florida's
adoption of Resolution No. 2013-28167 on March 13, 2013, PENN 17 LLC, a .Florida llm~ed
liability company, for Itself and Its Officers, directors, shareholders •nd principals (collectively
"Tenant•), and AMIR BEN ZION, personally and Individually, -by execUtion hereof, hereby fully
and uncondltiona!ty release the City of Miami Beach, Florida, and Its commissioners,
employees , administrative executives, staff, attorneys, and their respective successors and
assigns (collectlvaly •city"), from ~ny and all manner of actions, causes of act ion, contracts ,
agreements, covenants, controversies , claims, and demands whatsoeve r, whether legal or
equitable, known or unknown, fixed or continge nt {collective ly, the •claims'), from the beg ln nlna
of the world until the Effective Date of th is Release (as set forth In page 2 hereof), arid re lating
to that certain retail lease agreement by and between the City of Miami Beach, the Miam i Beac h
Redevelopment Agency (as •Landlo rd"), and Tenant , dated September 18,2011, Involving the
lease of approximately 7,655 square feet of ground retail space at the Pennsylvania Avenue
Garage, 1661 Pennsylvania Avenue , Miami Beach , Florida (the MPremlses"), Including, without
limitation, any Claims resulting from the (I) ventilation system, and/or (ii) the air cond~lonlng
system on the Premises.
The provisions of this ~elease shall survive any termination or expiration of the Lease.
This Release contains ·the entire agreement between the parties, hereto, and the tenns of the
Release are contractual and not a mere recital.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
1
97
rN WfTNESS WHEREOF, f have hereunto set our hand and seal this ___ _
day of , A.D., 2013 (•Effective Date").
TENANT:
ATTEST: PENN17,LLC
By: By: ________ _
Secretary General Partner
Prfnt Name Print Name
STATE OF FLORlDA )
)SS:
COUNTY OF MIAMI-DADE )
The foregoing Instrument was acknowledged before me this day of
, ~013, by as · of Penn 17, LLC, a
r.llm-:-:-lte-d::--::-lla-:-b":":"lllr.-ty· entity. He/she Is persona ll y known to me or produced valid Florida driver's
licenses as Identification.
Name:~~-:--~-----
(Print Name)
Notary Public-State of Florida
My Commission Expires: ___ _
2
98
ATTEST: AMIR BEN ZION
By: _________ _ By: ________ _
Amlr Be n Zion
Print Name Print Name
STATE OF FLORIDA )
) SS:
COUNTY OF MIAMI-DADE )
The .foregoing Instrument was acknowledged before me this day of
~=--;-;-~'' 2013, by Amlr Ben Zion . He/she Ia personally known to me or produced valid
f:lorlda drlva?a licenses as Identification.
Name :-=-:~-:---:--------
(Print Name)
Notary Public -State of Flo rida
My Commiss ion Expires : ___ _
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Damian, Elrzabeth
From:
Sent:
To:
Cc:
Subject:
Anna ,
Lorber, Richard
Thursday, Marctl14, 2013 7:10'PM
Parekh, Anna
·Aguila, Raul; Gomez, Jorge
RE: Penn 17 -Co.ndltlons
As we discussed earlier, here are some cond itions :
• A double door vestibule shall be created and maintained at the main entrance of the establishment.
• The ground floor windows facing Pennsylvania Avenue shall be sufficler,tly transparent to afford views
of the Interior of the facility. · · · ·. . · ·. . · · · . . . . . . . . .
'• .. . .
• The _appllca11~. shall b~ respons lbl~ for malot!llnln_g the .areas adjacent to ~he faplllty, suc_h as the
ald~alk ·and_ t_h~ areas. of the street ac.fja~nt to the property. yvhen sweeping the area In front of the
eatabfleshmenl, th~ personrtel dol!lg the ~weeping shall en.sure that they ~o not merely pu~h the refuse
In front of another building, b.ut pick up all trash and dlspos~ of It E!PProprl~tely. . · . . . '. . . ' · ..
• In the ~v.ent there Is queuing of peopf~ to gain ~ntrance to the establis.hment, stanchions shall delineate
the .area t~ aU ow for the free-flow of pedestrians. Security ataff a hall monitor the crowds to ensure that
they do not Interfere with the free-flow of pedestrians on the public sidewalk. · . . . .
• Street flyers and handouts shall not .~_permlf\ed, ln.cluding handbills from third-p'rty promotions .
• • 0 • • •
• Security staff sha!l ta~ measures t~ strictly enf9rce patron ~ge r:-estriotlonal.n \he City Code at all times .
• • • • •• 4 •• .,. •
From: Parekh, Anna . · . ·, · ·
Sent:. 'Thurs_day, March 14, 2013,3:42 PM To::lprb;er;_Richelrd ~ · .. :-.. · .-, · · .. · · .. '.
cc:.Agulla, Rauli :.B9n~e, Kent ·.. ·. . .
SubjeCt: .fw: ·Penn 17 -Notice Publjc .Hea~ll'!g.doc . · . · ·. ·
•• :-••• :.. • •.• 0 0 ••• •• ,· ·-••••• : ••• •
Richard,
Are .vo4 OK with this proposed language?
Anna
. '· .
From: Sonde, Kent
Setit; .Th~rsday, March 14, ~0'13 03:36 PM.
To: Agull~ Rauli Parekh, Anna .
SubjeCt: Penn 1.7 -~o.t:J~ ·Publr~ Hearlng~doc . . . · , ......
• 0 : •• •
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Raul, Anna · · · · ,.. · ..
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Have drafted the att.aciJed Public Hearlns notlce.re Penn 17's proposed Change of Use for the entertalnm!!nt
component . Please advise of anv changes, before forward.ing to the City Clerk.
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Parekh Anna
From:
Sent:
To:
Subject:
Attachm•nta:
Anna,
Scott Levine [sslevine@msn.com]
Tuesday, May 14, 201311:49AM
Parekh, Anna
Penn 17/ Cooper Avenue Letter of Intent
Scott tevine.vcf; Penn 17 Cooper Ave Executed Letter of Intent. pdf
Sorry for the delay, I was out of my office this morning. I would a like few minutes with you this afternoon, If
possible. Additionally, one of the principals of OBK Project, LlC, owns and operates 12 restaurants already.
Please catl me on my celt (954) 709·2583 after you receive this email.
Thank you,
SCOTTS. LEVINE, ESQ.
SCOTTS. LEVINE, P.A.
1555 North Park Drive, Suite 102
Weston, Florida 33326
Telephone: (954) 616·1132
Facsimile: (866) 703-5508
The information in this e·mail is confidential and may also be attorney-client privileged. The Information Is
Intended
only for the use of the Individual or entity to whom it Is addressed. If you are not the intended recipient, or the
agent
or employee responsible for delivering it to the intended recipient, you are hereby notified that any use,
dissemination,
distribution or copying of this communication Is strictly prohibited. If you have received this e-mallln error,
please notlfy
my office immediately by e-mail SSfevlne@msn.com. Thank You.
1
EXHIRIT C
102
1.~~~~~ 1111J (~tll:lll~tl: /
·r111 ... '"'""r :•r.M:tu\!11\ nhi,. ···~nt"l.. J~&wtl '" ,,r Apntf-.\ ~on. b~ 11.nc.1 '"Ill"')'. P~·nn 17.
Ll.C il ~ h'lfl\l:J Li1nia~:d 113bi tu~ c:urur.:u~y Uh~· ~c:,,mnnn' "), OR~ 1':-tl.j..:~l. t.t.C. ~ rt•mll,. lim,Lcd
Llillllbl) ~:umran~ llh.: -~.(1· 1111t.l .'\mit l kn-Zim.,. 1\o-,iJ~nl .u·1h" SM~ .~· f!lt~rld., fi.,~n.
l.i.wi'). s1:1' lonll thv v .... ~rnlult•""n' M 11\c proJlL'~"'Iloolilct of!IO% ,,1 t114· n'tm~iJl im.:t~~AI~ in
J~• l'Nn(ll lll: niK• ··~1!!1!.1,"!"), O:UI\'l.'f»ly ll\\nL\1 h~· fl..'11·i'lnll fl) the })U\\'r III'Clll tht' 1ern1, :1111f
cu~witlans !<OM liu lh hffcln in thia ,\llt~ITumt and t~l ~('J'I~i n l1n un•t~~~· 'h~\! Cine "'~1.'~"}.
dat\!\1 M OJ April -· !flll. :llld ~Ul'!dllld l11:C't'lo U) 1:\~ 1111~ '') fjll\.qJfl!gn" J, II!.: C~1mp:1~·
~wns 1\ll ul' 11~ ril(hL. lill.~ ~:n1•l ifttcr<:tt '" :wt Ill "l'oo!X'r .r\~~1u.:" ro~~;turmll lll~atl:d tn Mi:tmi
Pkn11!4\ I lilt • ~"'t\.ll!rl)tlt~ ),
llw fiiU'Ik~ lllh.'lld thl' Ap~.:nk:nl lit b¢ bind lilt o~ml cnf011:~11bl~. ;~nil 1h:11 It '~111 '"ll~ let-'ltc
h<:n~llt~tf Ut\1 ruttlcli .lnd ll...:ir N~p~r;,h·~ ~""""'~"~'!':• a.1" a"'irnr..
I. Pur~o•htt~ ~~ ll\11~ t~l' :SiwD!rl. S uhJ«ilu 1~ tt'ti1U nm l I:OJldillon~ uf this A~~o'111Cnl. lhc lliolc
nlld dl.'llntli\'C \11.11: 111\\Ctllallun. al tin: ~ltnln~ ui the l 'r.Jn~~~mn Uht "~.'.~rJUWI"\. ~h~ Ruy~:r ll-hll.ll
J1ltl\.'h:t!o~ lhlln u~,•n·li.)l't, ;ll\d n~ .. ··Ziun !.hull "'n l(l the BU\'\lt, dtc Sba~.. l 'h~ d:l!4) (Ill \ .. htc:ll
th.-t 'lt\~oing c...:.:.ur11 k rdotno~'IJ lc\ h~, cl11 ~~~ n'-1 ''<..lt»\111~ ll.ll".·
!. ~.w~l.illillc,, NN\\ilhhlmldlny l\llylbinl! to 1/l.c ~·~OIIll~ ll(f r"nh In thl); t'\t;'Jfo!ntl:tl\, •t..:
Null: Ul' Ill\)' o'htr ,,,,t:II0\~1\I , 11...: nu~·« 'llh~&ll 'llllllll$1\11\(' M~ lillh11114~· .. '" deb~ 1.11' lt~n·l.illll or
the (\flllt\>ln}'o CXI:~Jit IK r.pt'\:llkiilly M::t f~r\h Ill th11 d.::fini!IW lr:!llA"'CdOll diiCilllltAlt..
J. l!)!NhN~!r l'rji:I.';,~J) N~. SUbJ~'\:1 to lhc ~Olti sfu~IN' tcuupkthlll or the lSII~I.'f':t dill:
uilit!.lliii.'C tl,''il~'\\. 1111• 111\-j.!~ll~l~· P\lt&:~~.: pMI:l' fur lhc Sh t\~' Uhc "Pun•fla:o:.J!r.i.-:.1.'"~ ,11~11 be
$~0<J.ll011, p.,yahle •~' ll~ll·7.i~>n in hltnwtllnt~l~ :'1\'uilllhlc fund< un ll\1! { 'lo;.ln.: J)ah.·. llpon I hi:
C'.\~\:11111'" ufthi:. ,\t!ICC'I111:1\I. the nu)W ~ltnll d~li\'t"lln Ill.: ~lkt imm~'fii:uely ll\•4II L1~1c fund~ In
chc JUIKlUill ,,f .. 100.000 "'11'"' 2Iom th~ llhtt\.C·I~I~'f\"'~~'1 S~OO.OIIU). it h.:inil \lnd\!t-.luod ;~nd
"~""''' 111.1\ \U\'h 111 1~l~ ~hilll \!< 11\L\l ~} the ~liL'r ~ull.')) to 1\'P."~~ rutJ ~hn: 1h\l deh1s sct /UTili in
s~~ciM $ uflhlll t\J•/-.'I:Ill\.'111. '11~· Xotc do~ n111 1\!\jllil~ ~paymc:m. if th~ TmnMMittn (lf\'k"\, m
\\llu.:h ~~~ t.!o\JU.•IIlll ~hnll be '';ln~r",'.:r.l l<• lbr S.:ll.:c itl ~~~lutll!~ lui" 1\b ~~. inlcres. 111 th\1
C'ocup:my t\1\) l'nllu~ b} th~· Sdlcr t\\ ~on1pl~· with hi~ L'IW~Jnts. Ulffl''IIII.:UI~. r~pi\"Wl lll'lllon s
N ohfit!JIIi~IL<. in lh\S Af!I\!Cill<:ll\, ;h~· ~niC t.lr lh~ 1idinltl\~ do1:UI'I).'IIIIIIil>lh ~l\o11: t:llll\liMI.l lUI
imm«<lillt ~m:h ul'tb)'l ,\t!r•~•·•~m.lh( l>\'11~·• :oil~JII bt: 1\<q uil~-d 10 m1m~ll:nel~ n:pa.v II~ No1c
in litll lu '"" Buyer. 1n••l tho: 1-tu~\·r ,h11ll he tnlhl~"tl In ;til <JPPin:tJ"l'• 1\llll~~il.!s "' lnw ;,nLl ur
cq11it~. l:or· 1~ a\'ui~an\.'C nf' ct ... uht. in the \!~·~nt lhi\1 1h~ 1 rnn)<t~tivn Joe> 1101 .:h~.~ lilt a~>
~~L\1111 \\ bil\li(~\·~.,.. 1111: :'\l olt' ~1\;t\1 he imnll:diJld~ ;)C\lCICr.ltl.!d 11n.t ~'~•~tl:nc dt~ :mtl p:~,y.:~hlt Ill
rbn.
103
I. ~~~-~IJ~.in, (.\,~~n:u~1,. ,o\, !oUP\l ;u Jl('!.~lt-io:o lho• ~Htrtio >1 iiJ U>e lht.:tr n,~ t.:ffillb l<t obtain all
n,'\.~S'4nry thin1·&1:1n~ .uttlll,•\\'fl\mo!ftl ~~""~"'!' 1md11dillr. .-11 c~rtilk:IL~. ~""'"'i"' allll.tppmvals
tC\jUit1.'d ht ~nuu,'\:Jiltlt ''"ilb lh~ ap~·""iut: nf till! (.'l>mll\m~ <~~~ 1/1.: ~:.1~ ~r 1~ ~h:~rt-. 'h~'l\tuu&.l.'!r).
The u~u~"' (If 1M-M.csln.uriUJI. includin~ '~\1 Scllt.:t. ~h~ll tontltluc to \lpt.'l\ll\' tnll Cartlplln~ '$
t"'M"~"'\ i11 a lri;LIIN.'f rntrl•·ll~"'ll ~~ ith P•"'' pr,,ctkl' ''~'~'"-"-"' Ut\: JG\C nf lhr" Arr\"<IIU~"I\1 a1\d the
\"\lll'llllllltll11il111\ or tbt: Tr;II11Ct1Clinn. lbe-partl'l."l 1\t:f!A: \\) pi'CJ"lre. 1'\'jJ,Oii.:ll.: and Ct.CCUtt' ...
m~mb..-r;h'l' fl\11\:h.'lsC' or.J Jllll.' ••r.n.~mc-nt. \\111\:h \\ill n:fl......:l the tttm,. ~~ ft>tlh in lhi~
A~CIYICI!t and ~·111 C:UIIl~tirt ~U~k'lmn~· R'PI\'~\'IIJ~Iil>ll~. 1\"flf~l•llt'Y, t:u\·~•ll:lll!S tln!1 lnd~111Niic ....
5. ~OJ)ditiUitS. lh" llu~~:r llltlftlw S,•U,•r \UIItull ~ <lbliu;tll'll b 1 1.'\KJ.(IIrl'im.rle lhr: Jl'll l'l'ltll\ll utll~
lht: l'nUn\'linp ~.-onditiOn' Pl'lt1."'''1~nt h11vc tl~ m\"1 nr \\nSV~ In wnl•"~ by th\! Buyer priur 1\lllJ,•
,,l<lllil\~ ()~1~·
... """ .... ..,
u. 1"1\c 8uy~r >httl' w -..lii.,XIlcd with tb~· tll'llllt~ afits <lu\' dthp.m~ 1~\·l~".
b. llr~.• Sdlcr ,.h;lll l~;~\·t tteci\·cd all not~ilic;lll!S. penmb .tml u~~~ro~·.m lit.~ 411\.' 1\'ljlliri.'\J
111 c;.\lm~tlfln 'nlh the: t'u~·Ct'·~ (1\\ni.'DIIIp of the Sh~ ::ml! tlu: ttt'!Cr:l\li)fl of Uw
l" 1lftl pan~ ·,; btt>Jll\1!>~
\'. The p.,nh"!! •h11ll h:~,·a JC'<UI\l'rf :1 1JII1C h:rm II-"~~ t'rn111 II~ llmdl~1'4 Qt' thl· huiltlin~ In
\.\·hid1 Jh..r C"omj»nf~ hlr~<iu~ .... ~ is Qlk'ntll:tl , \\'ilb 1'211 p;J)"ml.'l\1\, ta.~cs t'l.llcl 1~h1'1
~ti)M)l111h full) ll:lid and up Ill ,11111:. A loog tr:.tnt t.,.,,..c ~~~ulcd b~ tbc illndlord. wl1b
j1A~JI\Cntllllfl II, Llu.1~.
,t. fh-: S~l~r .. 1\IIU h:\\\! cmnplcf\'1} ~ui,•,J tlnd (INul~.ll't't.-~'-\!1> rcl<~tln~ ttl ti•L•I;~Yr:~>Uit~
~· 1lw c.-tllllr:~1ot. v,-,,,rL::Hit; Rirl, llntl au~· ~111'1' utltlit:llldtng cluim'l. <~mm.niJ Cit
l:fctiJI:~ of .'M:lU,n., filf "hi(h fh~ S11tkr ,fltlll he lfttx/11~iltlll. 11nd the Sc!lll.'t ~lwll
1'1"\Wrdr nrin\ln pru,,f In tfu.• tJ11y.:t of ~o:t,II!Pt<!tll umt 1 ~l~:asc~. '£114• ll\1) .:1 · ~Ktd hs
~pli...,l!llta1i~~s ~tt•ll to..· Jt~1111in"'d ~ ~"•dp.,l..-in ;~n~ fiUeb ~lllllltll:l\h n•'ld Jtljl~$.
(-, J\11••11~.-lll.1lcri~llhll'll p.111} debts nr"lh'' t·~,n~lli,Y shall ~·l."nnlf'lll"'dy r~·ptild h)• tbc
S~H~or. •ndt1r.linr. 11 ithMLI 1'm1t..11:~m. nAll\t.IAIS ()1.\\:CI I<' Ifill ll'illll.: :&b"':DI~. bruJ..~t'j,
~u~lic:ol'll. 11lil1l) I'""' i..L.'t\, .:ovcmnt~lll ,,u1t1othl~~ l1n4 iJ!l~· o1l11:t Jl1.'11!0II 0\\~-d 111<.111e~·
'" howi"Jl.IL 1:l11im Q~ti,"t \he-t\tlnf'"''~·-
t: The Sdkr ... 1\:tll rlr.Widr dl\.' Uu~~·r ;.J ~orupi~IC' ~nlol ~"tlllljll\lllllll~i~·c n~ {If illl ul'll~~:
t "um~!WI~-~ :r~l~. ln~:\llhn ••ilh lhL• 17\."111\!No tl:qltc..-.1.:11 II\ til~ dur oliliJ~II..:C 11~1
dll lh·~ b~ lhe H uy~r lu th.: Sell'-''
g. ACI lt.t.•ll.:l.:'lu:.~l propm~ O\\n..'t.i h~ &he l"t'llnp;,n)· ..Jutll r~nl.llll O\\Ctlld h>-lhl:
Ctlflllfllll). lhlfl.,wint' I hi" I llt.1~4Cii1"1 . ·\n~· iur~tll"'·rual ~IM(IM~· Oll'fk.·d inJiv)dllttll)'
104
h> 111.: ~cll~r ~un be: trOtn~·~·l1\·d II\ the RU)'et on 111rm,. allclt•tt"lilitW• a.:~-41\C<~hlc 1<1
tll.\l nu~~l'-
i&. l ollou inc: d11:' ~n.,umr.tJtinn cd tlr~ Tr.m~c:fit~n. tht-to~ ~t:~l: a'lnllnuc 10 cmn
i111 tr~l'l • 1111~ a.no4 in '.cfet.t 1 n ;Aul u, fhco lb:"'fiL1t'Jnl.
i. Tht nu~-cr !lh~ll ::.iJ111 u .\"(Urii~ -.tiM fll\'\1111." t~ar,'tiii~IU. pl~rll?ll}\ &41 the Buy~:r
'""""'). ()<'I'CC'BI (:W~·ar of hi~> n~~:ull~t,hif\ an~rc~tzu th~: l'o•uf<lll), which ~hiltl>J shllll
b~· lrvts ... ~ d~r (If ~~~ 11.-ct•r 111111 Cll.Z"Il\bl';lrtlo:l..,. nn •• ··~·rull: li'!C (.'!~.>Sin~ nate. in
1'11\Wr It• f'll" it1~ 1M Hllytr w11h lttk'!!.JU:tt~ ~C\'lurll)· unJ~:r lht• ~ .. , ....
j. 11 11." r;•rt1•'·' ..!1:itl L~Olhli•h illl ''!ll."hm ••r o '1\old bad."' from lhe l"'lfChliSI: Priet: \v
· ~:uwr llnbi:itl~ rc~t"~f ,o 11\c ('ampan~ \ ~ ... i••.:M. tlw rnll~· co:t1~t \\S 41f the C'lo.,ina
1:1-.Slt'. 111 Ilk: nr.prc:ll,l\te QITII)UMI ur $150.000. S\ICh ;unlllll'l •boll be h~lcl h> th~:
Du~cr·:f ~c~Un'>l:l. 14uytl k. .lcn,•rtlll'~ P.A .. filr ~ ~thkl•1f nine1~ !ClUJ d:l~ll II•U•minp.
lhl" C 'iuNin~· Dale tn '"d~·r te~li••wl .:111)· "'~doll~-.:1 Ulllllllll~t~~ liilblli1t~ "" which the
l!•t}.:r ma.y he lt~ltl r~.,roMibl~·.
k. 0•1 thL' fiMifl~ 1):11~. th.:-~cl l «:r ~ll~ll &:h\~r ll\ lit~ R u ~·cr the :Shun:<Jo fr,:c: :md cl~lllr of
Rl: li~ns. l!'l'l<umMtr-4-\!'>•}t Nner li:tNhts~"'
I. Tit~ Sdl~r ~ohull pnwltlc IIIII Uu~·cr \~ilb thl" rrn.11' lh.at tho:(.')!}' ,,r Ml:~n1i ncu~h hll$
rtt!J\.'L'>.I 14• p11y 11'1\' <11111'unl "r S!3~.fl00 ~il\!t:tl} ta tl!l ~~~\CII'ri tnntrnctor iur th~
·~·[l'(:lllllllllflht: •til"\!11ndhl.ll\lll!'. ~~"-ll:lll !~11hc "'''~'"' ''·~· ('<lllllp.ill~ ·~ ~lld11\l~·
n ('Mlplianc"' b~ lhl' S.-11,')1' w!tb illl ~~· itli uhlit:.tninns unL1cf thi> 1\!~'':~nu:nt ~d lbc
Not~:.
I'· 'I h11 ~l.'lh,"'' ... hllll ul>\: cite 1\md~ ~llc..<Wil 'b) die N1"" 111 ••nll-r cu ~1tk d~. lls\>r,IIAt«
unLI ~lh\'f h.,bilit i.,, 11rulli>r no other 1\';l'lun 1'1w ~Jl1:r ahal11.~p llw Rat~,:t;,pprl!illd
t•( un~ ~ncb '>C111Ctlk:l'llll .1ntJ:ur n .. ,~it)~ncnts ltf d41ttl~ l ·'ailm;: M, tltr Bu~·,•r ru t:ltlliJ)I~
~ lth 1111< r:•w ... n;slll ~ol.all ~ gr11un•h ihr m:~:dc(;)tinQ :~!\ :l'lltMtnl~ u\\..:d und er th~ l\ou~.
(,111'\'lll~in~~ U~l lhl: ;~~!-~'h \Ull~'\:l (t\ \hC ~',l!Ml~ J\,1'(1:\."mll'lll 111~1 h!tl1lilllilin~ 11\c
r' 111111'\Cl ioo.
I'J. ll!IC Pillt~.)~(' 1'hc. Si:llo:r II.Jtfl.'~· 10 ~l'l~miL' lvilli ,,.~ Bu~"'r'JI du(' dili·=J!lll:t: LI'I\'C$tl~IOll or
tl~ (.'un l!l'lll}' •• ll!l~ln~'4 " .11111 111 1u•w id~ ~ llu~·N 11114! iL• rcprCS<tRt\IIVI."' \t ilh I!tlll'l1\~ lind
105
r~'ll)\111,11\l~ liCCr<." l4l "M:.)i ... lllf'I.'Yt'\'~ :\nd l\1 bl~<~b, fft'itl'lh, \!VIIIfl\Cb 0.11\1. I'IIWf i&ll'~>rtn.'lliOn
(ll.:l't;linlr\J tulhr t"t'lllf'l'll).
7. (..tmf.i4.:n~J.!\I_11.): ~tlrl·C\~mpc;~ti~n. Th~ ~u~cr u rll w..• r~· due dih~:~·~~'\: i11rnm~tlon wh:l~ fur
lit¢ purprMe nflhi! Uu)et'li dW•hlw~-:..:c izWCSJflr,.'ltron ol'tlk: C'umpan' ·~~ I>!Nrldi.. and unlc,~ dtld
\Jnt~l 11..: pun!~~ c:un~1rnuniltc: th~· 'I ml\..:~cti.tl'l , the-Ru)'ll. iu. ... mu,,,,,.., t.lirccwrs. ol'lict·~.
\!lll('lt'J!-'~ll. Ud\' IS ~>J~, lWllt ll~~" ilil<' llu)er'' ~RI!J'N.'Y'O!j!tiv~··) )llltl' ~lB\'C $OIC :117C'\'~\ ICI tM
~~C d•ll ~n.:o: ins(.ttmasnn•
8. c~'l\fh1\!0li.lllnt\11111011i!\l~. ·~be nu~·~l \\ iU dL'-\:111~1: II~ du~ i!Lhf,l.)flet inltlnt1allvtll.lll1) b) U\osa:
lt~o"j1rl,~OI,~i \l'Q I)( ~~~ 8U~t'l Wllll I~<X'd It> kiH.II" •Udl lnl~lriJIUl i M I'Of' lhe 11111~ C(
Qllr.IIIIIUlollin~ lhC fntn~a\!lion. ·y h1• ~~ J.&;-1:¥ iiJ'\'\.''1 In h\': respumu"la• f1•t iNI.r bl\-11\lh llf 1hit.
Jll1rnV.TUJ'h ' b) ~1\)' 4>r lilt ttu>·~r'~ ~~~jU\!i.eftiL\tl\ts . lit n1~ C\'Cnl '11.: l"tbll"SOC!Ion t~ IKII
""''~ltllllt\JIIed. ah11 Utt ... tt '"''ill r(tum 111 the S~o:lkv Btt~ 1r.;sto:riah ..:11ntait1inv dill.: olili~·~
nr lcml&t\ll<m, or wtll ~:Crtil)> ill '"hi••r. 111.11 llll ""~b M.1t~'fti11~ nr \11'1~\iel ol ~ut;h m:ucli:ll~ b.ll'-.1
tw.·~11 Jc:ttroyl!d. lf~ lltl}cr t~l~o~1 ''Ill nu1 till..: l'lfl' du.: dilll:l"'tt\! illrllnTliiUOll kt ~:ompctt' t1 ith II~
Sgl!~r In Ul\' &;~.:nt tb-'L the' I t<ltllillC11111\ I< l~lt ~\llbLlll\11~'\h ..... t rh~ pR1\"I'<iOtV. nr '"'• p;lfli~IDJ'h R
~ill5-t\T\'lW 1lr¢ tcntl•ffi•limt ,-.flhl~ ,\.,.t'&'n!Cil\. ~Uitthh~UI'Idll\;1\h~ rl\fl!.~lll1;,!. \h~ ~llctsl\aJil'<
Jl"l'llltlll'•L •tlli.\ll Jl"'"' nn1i.:~ "' th\• Ut•~W. fO JIKtN~. ·~•!(llliltc. 1111d ""ltle dtbl!< \\itll third p;mi~
pliar t\' tlw n,"inl!.
0, t'tli\~Mpl\'l\'\'\ llmil tb~ l'Ll\l •tnJUII~i nn tlr li~o: 'fra~';ll:1i01L. 01' tn I~ ~I"CIU tb.1l 1111!
I~U1i•~ llcl !\\~ .,-1111)\11)\lllill<' lin• •r IIIIUD~lk•n.' lh•• PU~Cf \\"Ill rmr ">Oiicil 01' l~.:nlil tho.: 111nrlo)~Ct. tlf
lltt l'11111)111•W' S hiiSII'Ifl'l~.
tO. ~!t.l!JM~l· f)C(lji_!lJI. l"l\l~llh~ date l!l."n\lr lllltll!hL' Cln<lng Oil~. lite ~ller \t•ill rW>r CM\1,'1' 111111
:111~ itt'/l.~lllo.!r\1 • .Ji~~l,._,j\ln, l)r 1W~~~>Iiatjon "ilh. l'lr pn.l\'illl.' rlliOI'Mt\li~tl lu, uf SC.Iti~ll, \'llenUtu;;j('.
~.<~~frrtRiti (lr ct,~n~ii.kr 11ny mctu i ti~~ ur ~ah from . an~ ntheT curpt•l'\'ltion. nnn or urh~r pcn.m1
y,iiJ1 1\!lii'CC' tn (II) 1~ p~-.il'll•! di~po~llt~l nf lillY lnt'ltll'ltt:dllp illlllt\'~1~ ln tltc Cttmpc~n y orb
lllll11!rtal pi>r\\1)1\ ol' tho• 1~.....:1~ of 1111: < "tontp~y. or (h t ~1\y ~l!im~~!l ~umt>h\ll111lfl in\·olvlng II~~:
(.'l,lnlp.m). wlwth•'l' b~ \\""'~· ••t' II'WJgclt. C:CJIIMIJiJat£()1\, -.h;JI\: C"-1!1\~11,\\•' IW U(fl~r ltflll....,l!tion.
ll. CU!ll~< 1\GUl'IIIW~'m~~~~l. ,\II 11r~u re'lo:<llill' :'llld p~tbt~.: IUIOCIUI'IC:t•utt<nh 11.'18\in~ 1C' lht.:
Tr.111!1JC1ltlll "iU ~ U~,t\.'\:d IO ;11Td l'rt"p:IM:i i••imt, b~ till" Sclb.•r ;uJtJ tile: nu~\.·r.
1::. t .. ~· ~uh,\4'1.:1 t.:> 0~ pru~ j,j,•n~< .~r JWlli'.r"l'lr.-h '~vi' tl1io;. ,,,_,.:cn•~tt~l. ~1\ p:1tty "ill JXt) ;,ll
of' ir•. ~xpcn~'"'· iucludil'l~ iL'!:Oil 1~"1!~. iut.:riiY~\1 111 t''lflr4!CII<)K \\ irh iltc: l'ru•t,ne«i~,JJ.
ll. ~uailll£ill~JF llr.: Sdl~r r~('t'C~o.:lllt; an~! "~"';ill\~ tll~tllw liu~·l.'r wtU ru11 irr~:ur 11.111" h<\bifilJ
in \!llt~l'-'<11011 with ti~<: c"nHnlllllll'l i<lll of 111< Troltl~::;(.\t\111 In :&rt~ llliTi.l pnrt~ with ~\lt\llfl lhc: ~lief
or il~ ,.,~,.'111~ hia\"1.' hlkl di~LIUIOn~ 1'\'j~llrdine thct tlb&••t.,i1full C)ftth• ~h.JI~~. ~lid 11;.: !\~lJer D8fl:ll\ tll
tnckmnil}. d~11."1ltl nu,, htlld h.11m~( lbl! Utt.)lll", i~ .,ll)cm. dir~IOI"J, ~ta~~.•lhnldL'1S, I,•JIIII}t\( and
"011klt~ frt~lll l&ll~ ditint'l h~ 11r lillbililll!'< II• )lf(h tlnNl p.;ttlit$. indmling lUI~ 1~!!;11 ur ui)IQ(
106
~"Jio.'n!l\'l' incurred 1n t:\lll~~tion \\'llb tl•u .!~t~l\51:' uf :.uc:h tllnm.. The Cl:l\~ltulll\ ~lltQnbl.'u il~
11\i'l. pura~l';lpb I Z \\ill ~1$1\'i~·~ 111\' ('l,)'.fn~: l>:&l..-ur Cit~: t~n1111._1Cion ar th1J A&Jt'tllle!l'll, \\ ltitbcvcr
l'lo~Ut>. r:lll'h~:t.
l~. ~~lit} u · ;111~ wnn vr fWU\i>i»n of~~~ Ai:)~Cti)\VIt •·~ i;n~Ud. i l~r:tl vr (lll!.'tlf.~~C3bl<:
in ;'II)) it:n~diCIIUII. 'in:h In\ ilh"ll). ;:r..-.~.,hl~ U11ll1\!nli.m:~'hilt1~ ~hi'llllllllllll~c <11'1)' ullll.'f term 4lr
r:-owl<~llm ,,.,bl~ .•\IJr~m·•JI).
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108
Parekh, Anna
From:
Sent:
To:
Parekh, Anna
Tuesday, May 14,2013 1:27PM
'sslevlne@msn.com'
Cc:
Subject:
Smith, Jose; Aguila, Raul; Morales, Jimmy; Brooks, Kathie; Torres, Gisela; Amlr Ben-Zion
FW: Penn 17/ Cooper Avenue Letter of Intent
Attachments: Penn 17 Cooper Ave Executed Letter of lntent.pdf
Mr. Lev ine,
Thank you for the attached Bind ins Letter of Intent (LOI). By copy hereof, I am forwarding your email and the LOI to the
Clty Attorney's Office for review and advice. In the meantime, as we discussed at great length on the telephone
yesterday and again today, the City must have an opportunity to conduct due diligence prior to consenting to any
change In the tenancy. Since the attached WI refers to OBK Project, LLC's acquisition of 50% of Penn 17 LLC's leasehold
Interest, I will appreciate It If you will send me the following additional Information:
1. What ts the proposal for the payment of back rent due to the City? As we discussed, the proposed Amendment
No.3 has not been approved by the City Commission.
2. Wil l your client, Roman Cherstovov, who recent ly became a manager of PENN 17, LLC, remain as a manager of
PENN 17, LLC.?
3. If so, what Is Mr. Cherstovov's background In restaurant management?
4. What will Mr. Cherstovov's role be In the tenancy?
5. What Is Eugene Alekseychenko~s (manager of OBK Project, lLC, which Incorporated on April 21, 2013)
experience In the restaurant business?
6. What Is Oleg Elyutln's (manager of OBK Project, LLC) experience In the restaurant business?
7. What Is the Business Plan regarding the proposed operation of the leased space?
8. What Is the proposed re-opening date?
MIAMI BEACH
Anna Parekh, Director
Oftlce of Ree l ElUte, Houelng & Community Development
1700 ConvenUon Center Dnve , M!lml Beach , FL 33139
Tel : (30~) 873-7280 I Fax: (30ti) 873-7772
We'D aile: ww.y mlamlbnch11,aov
We IT$ committed to p10vid/np exoetlent publ/o aerviOfl and aafety to all who live, work and pity In our vibrant trop/osl 11/storfo community.
From: Scott Levine [mal!tQisslevlne@msn.corn)
Sent: Tuesday, May 14, 2013 11:49 AM
To: Parekh, Anna
Subject: Penn 17/ Cooper Avenue Letter of Intent
Anna,
Sorry for the delay, I was out of my office this morning. I would a like few minutes with you this afternoon, If
possible. Additionally, one of the principals of OBK Project, llC, owns and operates 12 restaurants already.
Please call me on my cell (954) 709-2583 after you receive this email.
Thank you,
1
EXHIBIT D
·.
109
LAw OFFICES OF SCOTT LEVINE, P.A.
1555 NORTH PARK ORIVE
SUITE 102
WESTON, FLORIDA 33326
May21,2013
Anna Parekh, Director
Attorney at Law
Office ofReal Estate, Housing & Community Development
The City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: Penn 17, LLC, Lease Agreement
Dear Ms. Parekh:
1ELEPHONE (954) 81&-1132
FACSIMILE (868) 703-6508
I apologize for the delay in getting this to you. However, I wanted to be sure that any further
discussions between the City of Miami Beach and Penn 17, U.C, would be fruitful. As I previously
informed you, I represent Roman Cherstovov, who began working with Amir Ben-Zion in April
2012. At the present time, Eugene Alekseychenk.o and Oleg Elyutin are negotiating to purchase
Amir Ben-Zion's interest in Penn 17, LLC. Together, Mr. Cherstovov, Mr. Elyutin, and Mr.
Alekseychenko, have more than 20 years of combined experience in restaurant ownership,
management, food purveying and food sales. Moreover, based upon their combined experience and
knowledge in the restaurant industry, Mr. Cberstovov, Mr. Elyutin, and Mr. Alelcseychenko believe
they have a business model which will work.
Most important, Mr. Cherstovov, Mr. Blyutin, and Mr. Alekseychenko (the "Parties") want to work
from a "clean slate." Therefore, as part of the negotiations with the City of Miami Beach, aU monies
owed to Halloran Construction, and or any subcontractors of Halloran construction and or
materialmen which performed work at the Penn 17, LLC, location will be resolved, and any present
liens and accompanying actions will be dismissed. The Parties want to obtain a ti.nal CO, so there
are no further issues of this type.
As to the questions you posed concerning Penn 17, ILC, and its leasehold, the answers are set
forth below.
1. What ls the proposal for the payment of back rent due to the City?
With regard to payment of the back rent to the City, even though, the third proposed
lease amendment has not yet been approved by the City Commission, Penn 17, LLC,
wishes to take advantage of this third proposed amendment to the lease. Penn 17,
LLC, stands ready to pay all amounts due per the third proposed lease addendum .
EXHIBIT F
110
May21,2013
Penn 17, LLC, Lease Agreement
Page2
Penn 17. LLC, will pay the City of Miami Beach for the November 2012 and
December 2012 due, which totaled $64,791.00, and will repay the security deposit
of$47,844.00. Additionally, since January 1, 2013, and per the third proposed lease
addendum, the City has abated $28,158.88 of the total monthly rental amount, Penn
17, LLC, wishes the abatement to stand. At this time, Penn 17, LLC, stands ready
to pay the "abated,. rental amount due for May 2013, as well as the $64,791.00, and
$47,844.00 ~ set forth above.
2. Will your client, Roman Cherstovov, who recently became a manager of
PENN 17, LLC, remain as a manager of PENN 17, LLC,?
Yes, Roman Cherstvov will remain as the managing member of Penn 17, LLC. Once,
the transfer of shares has been concluded between Amir Ben-Zion and OBK
Projec4 LLC, the OBK Project will be joining Mr. Cherstvov as a managing member
ofPenn 17, ILC.
3. If so, what is Mr. Cherstovov's background in restaurant management?
Aside from his experience working at Penn 17, LLC, Mr. Cherstvov has a
longstanding career in the food and beverage industry. Mr. Cherstvov earned an
engineering degree from Amur State University in 1996. He later became an
entrepreneur, primarily focusing in the food and beverage industry. From 1996 to
2001, Mr. Cherstvov distributed wholesale foods and beers. From 2007 through
2009, Mr. Cherstvov served as director of operations for Amursk:y Prostor, a food
and beverage discount retailer. In December of 2009, Mr. Cherstvov co-founded
Mega-Trade, a Russian company which handled culinary food production including
baked goods. Additionally, Mega-Trade owns a chain of supermarkets and mini
stores in Russia. Mega-Trade's supermarkets are known for their wide selection of
produce and wines, prepared foods, fresh meats and fish, and decadent desserts.
Among his duties as director of Mega-Trade, Mr. Cherstvov was responsible for the
hiring and firing of department heads, as well as other employees. He was also
responsible for evaluating performance reports, approving, rejecting and or adjusting
inventory and inventory budgets. He repeatedly entered into contracts on behalf of
Mega-Trade, while maintaining favorable relationships with major producers,
suppliers and vendors. He developed marketing and promotion strategies which he
implemented. He reviewed financial projections and developed quarterly
performance goals. Mr. Cherstvov has also partnered with Mr. Blyutin, in several
restaurant ventures in Russia.
111
May21,2013
Penn 17, LLC, Lease Agreement
Page3
4. What w:lll Mr. Cherstovov's role be in the tenancy?
Mr. Cherstvov, will be a managing member and the contact person with regard
to the Penn 17, LLC, tenancy.
~. What is Eugene A1ekseyehenko's (manager of OBK Project, LLC, which
incorporated on April Zl, 2013) experience in the restaurant business?
Mr. Aekseychenko, has a degree in accounting from Wayne State University. Mr.
Aekseyohenk:o has been an owner and manager of retail establishments for the past
10 years. Specifically~ for the past 4 years, Mr. Alekseychenko bas been working
for SFERA, & food management and distribution company. Among his
responsibilities for SFBRA, Mr. Aekseychenko oversees Pasturella's Bakery and
Boba Sm.oothies, both located in Aventura, Florida. Recently, Mr. Alekseychenko
joined with Oleg Elyutin in purchasing the Soprano Cafe and Italian Restaurant,
located at 3393 Sunny Isles Beach Boulevard, Sunny Isles Beach, Florida. Through
his years of experience, Mr. Alekseychenko has developed a working knowledge
of the food service industry, which includes managing employees, conferring and
placing orders with vendors~ developing promotional strategies, and
conceptualizing business plans. His degree and experience in accounting, joined
with his lcnowledge and experience in the food service industry will provide an
excellent basis for a complete and competent review of the operational expenses
ofPenn 17, LLC.
6. What is Oleg Elyutin's (manager of OBK Project, LLC) experience in the
restaurant business?
Oleg Elyutin has been in the restaurant business for more than 12 years. His
company currently owns 13 restaurants and he is experienced in all aspects of
restaurant ownership including the management, management hiring, menu
selection, food purveying services, the hiring of kitchen staff and servers, and all
day-to-day operations of a restaurant.lVIr. Elyutin' s knowledge concerning this area
is unparalleled. Bach of the restaurants he owns is successful, as he personally
oversees the operation of each of these restaurants. Enclosed is a printout from his
website "r-projects.ru", which lists ownership of some of his restaurants. Recently,
Mr. Alekseychenko joined with Oleg Elyutin in purchasing the Soprano Cafe and
Italian Restaurant, located at 3393 Sunny Isles Beach Boulevard, Sunny Isles
Beach, Florida.
112
May21, 2013
Penn 17, LLC, Lease Agreement
Page4
7. What Is the Business Plan regarding the proposed operation of the leased
apace?
Cooper Avenue will be relaunched under a new name. It will be a completely
different style of restaurant The specifics of this plan are best discussed in person.
If the City of Miami Beach is in agreement with the new direction of the proposed
business. A formal business plan will be submitted, and renovations will begin
thereafter.
8. What iB the proposed r~pening date?
Penn 17, LLC, would like to roopen tomorrow. However, the proposed reopening
date will occur in conjunction with the relocation of the air-conditioning system to
the roof of the parking garage, and the installation of the new kitchen ventilation
system. Specifically, it will take 6 to 8 weeks to fabricate the approved kitchen
ventilation system, and another 2 weeks to install the same. As such, once approval
for all work has been given by the City of Miami Beach, the members ofPenn 17,
LLC, plan to reopen and relaunch the restaurant by September 1, 2013, provided
all work has been completed. The Parties are confident that if all work is done in
a timely fashion, including any modifications to the restaurant, a final CO can be
issued by September 1, 2013. M stated above the Parties will settle all debts of
Penn 17, LLC, and do not want City of Miami Beach concerned about the
possibility of any further litigation from any unpaid contractors or subcontractors.
Please call me upon your review of this email, so can schedule a meeting at your office to discuss
these matters in greater detail. I can be reached on my cell phone (954) 709-2583.
Very truly yours,
SCOTTS. LEVINE
113
(9 MIAMI BEACH
City of Miami leach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.mlamlbeachA.gov
REAL ESTATE, HOUSING & COMMUNITY DEVELOPMENT
Tel: (3051 673·7193 -1305) 673-;7033
CERTIFIED MAIL RETURN RECEIPT REQUESTED
May 17, 2013
Mr. Amir Ben Zion
Managing Member
Penn 17, LLC
1661 Pennsylvania Avenue, Suite 6
Miami Baath, FL 33139
Copy sent via electronic mail to:
amir@fcsny.com
Benami.shaf@gmall.com
jrynor@mitranl.com
RE: Lease Agreement (the "Lease") between the City of Miami Beach, Florlda, the
Miami Beach Redevelopment Agency (hereinafter collectlvely referred to as
"Landlord") and Penn 17, LLC (4'Tenant"), Involving the lease of approximately
7,655 equare feet of ground floor retails pace at the Pennsylvania Avenue Garage,
1661 Pennsylvania Avenue, Miami Beach, Florida (uPremlses")
Dear Mr. Ben·Zion:
The City has continuously proceeded In good faith with Penn 17 LLC (Penn 17 or Tenant) In an
attempt to resolve Tenant's ongoing defaults under the Lease, and ~xecute the proposed
Amendment No. 3 to Lease. Unfortunately, we are now at Impasse and, accordingly, the City
hereby provides Tenant with Its written notice of the following defaults under the Lease:
1
1. Failure to pay rent for the month of May, In the amount $30,130.23 (said amount,
inclusive of State sales tax, representing $25,596 In Minimum Rent, and $4534 In
Common Area Maintenance), which was due on May 1, 2013 1;
2. Failure, under Section 3.5 of the Lease, to maintain Tenant's business on the Leased
Premises open for business to the public, fully fixtured, stocked, and staffed. The
Leased Premises have been closed for business since December 17, 2012 and, bye·
mall to the City dated May 15,2013 (see Attachment "A" hereto), Tenant has indicated
that It has no intention of re-opening within the near future and effectively advised the
City of Its abandonment of the Leased Premises;
3. fn violation of Section 5.6 of the Lease, a lien was recorded against the Premises by
A&P Air Conditioning (dated December 12, 2012, and recorded in O.R. Book 28396,
The aforestated rental amount repreaena 60% of1he May ran\ orlglnally set forth In 1he Lea&&. The City Comm\11slon's adoption of
Resolution No. 2013·28167 recommended approval· eubjeot to and contingent upon the City Commlaalon'e eub&equent approval
of a proposed Amendmanl No. 3 lo the Leaae. of a 60% rent abatement, from January 13, 2013, to July 12, 2013. Notwlt/letandlng
the above, we take thla opportunity to remind you that elnce the City Commlaelon ha& not yet finalized Ita approval of Amendment No.
310 the Lease, and hae therefore, not finalized Its approval of the more favorable revised rent abatement echedule,lha City has, to
date, held otr on demanding the cuiTenl total rent due, absent lhe ¢tty Cammlaelon'a final approval of Amendment No.3 (and oflhe
revised rent abatement schedule), of$342,074.81 {lhe full amount rani due through May 30, 2013). Notwllhatandlng tha preceding,
the City reeerve& any and all rfghta to reolalm the FULL amount of rent due under tha Lease.
FXHIBIT F
114
Mr. Amir Ben Zion
May 17,2013
Page2 of2
Page 3630 of the Public Records of Miami-Dade County, Florida; hereinafter referred to
as the "A&P Lien''), In the amount of $73, 693. A&P has also filed suit against the City
(the •A&P Lawsuit"), demanding payment of the aforestated unpaid sum;
4. Despite prior written notice from the City, Tenant has still not provided the City with
evidence that a prior claim by Cors-Air, in the amount of $3001.92 (the "Cors-Air Claim•),
has been paid; and
5. Despite prior written notice from City, and as required under Section 5.2(n) of the lease,
Tenant (or Tenant's Escrow Agent) has not provided City with evidence that It has
deposited, and/or otherwise maintained, the minimum required $50,000 Construction
Deposit in the Tenant Construction Fund (as such term Is defined in the Work Letter end
Escrow Agreement, which was Incorporated Into, and made a part of, the Lease).
In addition to the above referenced defaults, the City received an e-mail on May 14, 2013, of a
proposed "Binding Letter of Intent" purporting to sell Tenant's (and your personal) interest in
Penn 17 to OBK Project, LLC (the Buyer). Under Section 8.1 of the Lease, the Tenant shall not
enter Into, consent to, or permit any Transfer of the Lease wllhout the prior written consent of the
Landlord. The term uTransfer"lncludes the transfer of a controlling Interest. Until May 14111, the
City was neither aware of a proposed Transfer, nor has it consented to any Transfer Including,
without limitation, the proposed sale to Buyer. If consummated without the City's prior written
consent, the proposed sale to Buyer shall be deemed an unauthorized Transfer, and therefore
result In a further breach/default of the Lease.
Accordingly, with respect to Item No. 1 of this Notice, pursuant to Sections 9.1 (I) and (li) of the
Lease, Landlord hereby makes demand for payment of past due May rent, In the amount of
$30, 130.23, which rent must be received by Landlord within flve(5) daya ofthe date ofthla
Notice.
With respect to Item Nos. 3 and 4 of the Notice, pursuant to Section 5.6 of the Lease, Tenant
shall discharge the A&P Lien and provide evidence of satisfaction of the Cors-Air Claim, withtn
fifteen (16) daya of thfs Notice. Additionally, Tenant shall provide Landlord with an Order
dismissing the A&P Lawsuit, with prejudice, within fifteen (16) days of the Notice. Failure to
do so within the time period specified In this paragraph shall also be deemed a default under
Section 9.1 (lii) of the Lease.
With respect to Item Nos. 2 and 5 of this Notice, pursuant to Section 9.1 (iii) of the Lease,
Tenant shall remedy ihe breaches set forth in the afforested ltem Nos. 2 and 5 within thirty (30)
days of the date of this Notice; provided, however, that with regard to the breach setforth in
Item No. 2, If such breach cannot be remedied within thirty (30) days , then Tenant shall
commence to remedy and thereafter proceed diligently to remedy such breach with thirty (30)
days of the date of this Notice.
TENANT'S FAILURE TO CURE THE DEFAULTS SPECIFIED IN ITEM NOS. 1 -6 OF THIS
NOTICE, WITHIN THE RESPECTIVE TIME PERIODS PROVIDED ABOVE, SHALL ENTITLE
LANDLORD TO AVAlllTSELF OF ANY AND ALL RlGHTS AND REMEDIES UNDER
SECTION 9.2 OF THE LEASE INCLUDING, WITHOUT LIMITATION, CANCELLING THE
LEASE; RE· TAKING POSSESSION OF THE PREMISES (INCLUDING ANY PROPERTY OF
TENANT THEREON); THE ACCELERATION OF RENT DUE AND PAYABLE UNDER THE
. REMAINDER OF THE LEASE TERM; AND THE INITIATION OF LEGAL PROCEEDINGS
AGAINST TENANT TO ENFORCE THE PROVISIONS OF THIS LEASE, INCLUDING THE
RECOVERY OF COSTS AND REASONABLE ATTORNEY'S FEES.
We are commmed 10 provld!nt:J exc~~flenl public 8ervfce and sofs~ lo oR who 111'9, wotl:, and play 111 ovr vtbront, rropfco/, hl$lorlc community.
115
Mr. Amir Ben Zion
May 17, 2013
Page2 of2
PLEASE GOVERN YOURSELF ACCORDINGLY.
S incerely, {j)~
.~
Anna Parekh
Director
AP:GNT
Copies to:
Mr. Steven E. McNeff
Registered Agent
Penn 17, LLC
45 N.E. 41 Street
Miami , FL 33137
Jeffrey A: Rynor , Esq.
Mitran i Rynor Adamsky Toland
301 Arthur Godfrey Rd ., Penthouse
Miami Beach, FL 33140
ScottS. levine, Esquire
ScottS. levine, P.A. ·
1555 North Park Drive, Suite 102
Weston, Florida 33326
Mr. Amir Ben-Zion
585 N.E. 58th Street
Miami, Florida 33137
Mr. Roman Cheratvov
17001 Collins Ave nue, Apt. 4005
Sunny Isles, FL 33160
Cc: Jimmy l. Morales, City Manager
Kathie Brooks, Assistant City Manager
Jose Smith, City Attorney
Raul Aguila, Chief Deputy City Attorney
Gisela Nanson Torres, Leasing Speclallst
F:\RHCD\$aJI\eoon\$all\aaaet\Pennaylvenla Avenue Garage Laaaee\Penn 17'11.1te Rent and Default Notice May 16, 2013 wtth May
rent only
We ons oommlrtsd 1o prov/dtll(} exc~lfent public service and safety 1o all who IIVII, wotlc, and play In our v!b1Dnl, lroploal, hiiiOtfc CCITimlHIIty.
116
Parekh Anna
From:
Sent:
To:
Cc:
Subject:
Amir Ben-Zion [amlr@tcsny.com]
Wednesday, May 15,201310:29 PM
Parekh , Anna
Aguila, Rau l; kbonde@mlamlbeachfl .com; Wefthorn , Oeede; Amlr Ben-zion
status report
I wanted to update you and the gang on what's going on at Penn17 1 it's actually good news for
the city •••.•
Roman Cherstvov, who has been my partner since May 2012, and invested $3.2M into Penn17,
doesn't see the reopening of Penn17 as X do, he wants a more proper restaurant , Deli and Bar
place , more high end 1 similar to Milos and I am on the casual rock and roll side •••••• as you
can imagine since the closing in December it has been a finger pointing game ••••
finally 2-3 weeks ago, Roman introduced me to his friend and they offered me an exits Roman
and his friend Oleg, who has extensive restaurant experience, He owns 12 restaurants I
believe ••••.. Roman • s background is in supermarkets and food distributions both of these guys
are wealthy and good business people ••• with many wealthy friends •••• In my opinion they will
invest more, stick around longer and try harder to make it a success •••• in all honesty I am
not so motivated right now, my father is in critical condition in NYC 1 we are a close
family, and my attention needs to focus on him and my mother, this Friday my father will
undergo an open heart operation and at his age, 80, it's a long recovery, I am actually
looking to relocate my parents to Miami soon and my plate is f ull .....
My point is clear I believe •.•• !f the city authorizes this ownership shift, and it needs to
be done fast, rent continues, penn17 opens, the so called new operator is wealthy and ready
to spend, they run nice beautiful restaurants, the crowd that is connected to the NWS will
love them, they love me less, and every issue will get resolved, vendors paid, AC relocated,
S0K back in escrow, rent paid in a day or two and the city is better off .•.• on a business
level it 's much better then 2 partners who no longer get along ••••
I am departing to NYC for several days tomorrow morning ••• feel free to reach me on my cell
Thanks for listening
amir
ATTACHMENT •A"
117
Sklar, Max
From:
Sent:
To:
Subject:
Brooks, Kathie
Friday, May 24,201310:36 AM
Sklar, Max
FW: Penn 17
MIAMI BEACH
lhlthle G. Brook•
1700 Convention Center Drive , Miami Beach, FL 33139
Tel: 305-873-7010 I Fax : 305-873-7782/ wmy ,miamibeachfl.go~
We are committed to providing excellent public service and safety to ell who live, work end play In our vibmnt, tropical, historic community.
From: Scott Levine [mailto:sslevine@msn.com]
Sent: Thursday, May 23, 2013 2:09PM
To: Brooks, Kath ie
Subject: Fwd: Penn 17
Dear Ms. Brooks,
I understand that your schedule is very hectic right now. However, I believe this
matter can be resolved with only a few minutes of your time. Specifically, with
regard to the City of Miami Beach's letter of default against Penn 17, LLC, dated
May 17, 2013. The funds for payment of the expenses outlined in the letter of
default have been deposited into my trust account. These funds can be
inunediately released and wired t o the City upon the approval ("Approval") of
the transfer of the membership interest in Penn 17, LLC, pursuant paragraph 8.1
of the Penn 17 lease agreement. Moreover, and as verified by Anna Parekh, my
client has been acting in good faith and working diligently to discover the costs
involved with reopening the restaurant, including the costs set forth in the City's
letter of default. As such, and further evidence of my client's good faith, my client
proposes the following:
1. The immediate payment of the requested rent for May 2013, in the amount
of $30,130.23, (This is based upon the rent payment schedule set forth in third
pr oposed amendment to the Penn 17, LLC, lease
agreement).
FXHIBIT G
1 118
2. The immediate negotiation and release of the A&P Air-Conditioning lien,
and or the posting of$75~000.00 in an escrow account to cover payment of this
lien.
3. The immediate posting of a $50,000.00, construction escrow deposit.
4. The enclosed proof of payment to Cors-Air.lt should be noted Cors-Air
forwarded their release to A&P Air-Conditioning.
Compliance with the City is my client's foremost goal, and once the "green light"
has been give for the transfer ofthe membership interests in Penn 17, LLC, the
above recited funds will be immediately wired or a cashier's check delivered to
the City. However, for my client to blindly forward a payment in the amount of
$155,130.23, without an Approval or an acknowledgement that an Approval is
forthcoming would be negligent, and only result in my daughter not going to
college, because of the malpractice judgment I will have to pay.
I believe the City and my client are seeking the same goals, the issuance of a final
CO issued, and the restaurant reopened as soon as possible. As testament to my
clienf s resolve, in addition to the payment schedule set forth above, my client
stands ready to absorb the following costs. Approximately, $260,000.00 for
payment to the contractor and any subs, this includes the payment for the moving
of the air conditioner units to the roof of the parking garage, repayment of the
remaining rental balances for the months of November 2012 and December 2012,
which total $64,791.00~ and the replenishment of the security deposit, which
amounts to $47,844.00. All totaled, my client is going to incur over $528,000.00
dollars in debt. Expenses which the City might otherwise be forced to absorb.
This amount does not include any renovations, or future rental payments.
In conclusion, I am hopeful that I will receive a telephone call from you this
evening or tomorrow morning. I can be contacted on my cell phone at (954) 709-
2583. Both my client and I are available, and would prefer a face to face meeting
as soon as possible. I await your call.
Very truly yours,
SCOTT S. LEVINE
SCOTT S. LEVINE, ESQ.
SCOTT S. LEVINE, P.A.
1555 North Park Drive~ Suite 102
Weston, Florida 33326
Telephone: (954) 616·1132
Facsimile: (866) 703-5508
The information in this e-mail is confidential and may also be
2 119
attorney-client privileged. The information is intended only for the
use of the individual or entity to whom it is addressed. If you are
not the intended recipient, or the agent or employee responsible for
delivering it to the intended recipient, you are hereby notified that any use,
dissemination, distribution or copying of this communication is strictly
prohibited. If you have received this e-mail in error, please notify my office
immediately by e-mail SSlevine@msn.com. Thank You.
3 120
EXHIBIT G -REVISED RENT SCHEDULE PURSUANT TO NEGOTIATIONS WITH NEW TRANSFEREES
05-Jun-13
Penn 17. LLC Proposed Rent Schedule
lease Commencement: October 13, 2011
lease Year: 2
01/13/13
02/13/13
03/13/13
04/13/13
05/13/13
06/13/13
07113/13
08/13/13
09/13!13
Total:
Lease Year: 3
Page 1 of 3
11/13/13
12/13/13
01!13/14
02/13/14
03/13!14
04/13/14
05113/14
06/13/14
07/13/14
08/13/14
09/13/14
Total:
01/13/15
02/13/15
03!13/15
04113!15
05/13/15
06/13/15
07/13/15
08/13/15
09/13/15
Total:
Base Rent
$ 47,843.75
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47.843.75
$ 47,843.75
$ 47.843.75
$ 47.843.75
$ 47,843.75
$ 430.593.75
Base Rent
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49.279.06
$ 49,279.06
$ 49,279.06
$ 49.279.06
$ 591,348.72
Base Rent
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50.757.43
$ 50,757.43
$ 50,757.43
$ 50,757.43
$ 50.757.43
s 609.089.16
Rent Commencement: Apri114. 2012
Repayment CAM(•)
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8.474.00
$ $ 8,474.00
$ $ 8.474.00
$ $ 8.474.00
$ s 76.266.00
Repayment ( 1) CAM<-}
$ 2.656.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2,658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
s 31,896.00 $ 101,688.00
Repayment (I} CAM(")
$ 2.658.00 $ 8,474.00
$ 2,658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8,474.00
$ 2,658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8,474.00
$ 31.896.00 s 101.688.00
~
(1) Repayment of July 2012 and Augusl2012 renl{$95.688.00) per
Second Amendment
(2) Repayment of July 20131hrough December 2013 deterred rent
($171.106.23)
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ {28. 158.88) $ $ 56.317.75 $ 28.158.87
$ {28. 158.88] $ $ 56.317.75 $ 28,158.87
$ {28. 158.88) $ $ 56.317.75 $ 28,158.87
$ (28. 158.88) $ $ 56.317.75 $ 28.158.87
$ (28. 158.88) $ $ 56.317.75 $ 28.158.87
$ (28. 158.88) $ $ 56.317.75 $ 28.158.87
$ $ (28.158.88] $ 56.317.75 $ 28.158.87
$ $ (28.158.88) $ 56.317.75 $ 28.158.87
$ $ {28. 1 58.88] $ 56,317.75 $ 28,158.87
s (168.953.28) s (84.476.64) $ 506.859.75 s 253.429.83
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ {28.67 6.53] $ 60.411.06 $ 31.534.53
$ $ (28,876.53] $ 60.411.06 $ 31.534.53
$ $ {28.876.53) $ 60.411.06 $ 31.534.53
$ $ $ 60.411.06 $ 60,411.06
$ $ $ 60.411.06 $ 60,411.06
$ $ $ 60,411.06 $ 60.411.06
$ $ $ 60.411.06 $ 60,411.06
$ $ $ 60.411.06 $ 60,411.06
$ $ $ 60.411.06 $ 60,411.06
$ $ $ 60.411.06 $ 60.411.06
$ $ $ 60.411.06 $ 60.411.06
$ $ $ 60,411.06 $ 60.411.06
s s {86,629.59) $ 724,932.72 s 638,303.13
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61,889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61,889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61.889.43 $ 61.889.43
$ $ $ 61,889.43 $ 61.889.43
s $ $ 742.673.16 s 742.673.16
121
EXHIBIT G -REVISED RENT SCHEDULE PURSUANT TO NEGOTIATIONS WITH NEW TRANSFEREES
05-Jun-13
Penn 17, LLC Proposed Rent Schedule
Lease Commencement: October 13.2011
Lease Year: 5
11/13/15
12/13/15
01/13/16
02/13/16
03/13!16
04/13/16
05/13!16
06/13/16
07/13/16
08/13/16
09/13/16
total:
Lease Year: l>
11/13/16
12/13/16
01/13/17
02/13/17
03/13/17
04/13/17
05/13/17
06/13/17
07/13/17
08/13/17
09/13/17
Total:
Lease Year: 7
Page 2 of3
11/13!17
12/13/17
01/13/18
02/13/18
03/13/18
04/13/18
05/13/18
06/13!18
07/13/18
08/13/18
09/13/18
Total:
Base Rent
$ 52.280.15
$ 52,280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 52.280.15
$ 627,361.80
Base Rent
$ 53.848.56
$ 53,848.56
$ 53.848.56
$ 53.848.56
$ 53.848.56
$ 53.848.56
$ 53,848.56
$ 53.848.56
$ 53.848.56
$ 53.848.56
$ 53.848.56
$ 53,848.56
$ 646,182.72
Base Rent
$ 55,464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
$ 55.464.02
s 665,568.24
Rent Commencement: April14. 2012
Repayment { 1) CAM(*)
$ 2.658.00 $ 8,474.00
$ 2.65B.OO $ 8,474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8,474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
$ 2.658.00 $ 8.474.00
s 31,896.00 $ 101,688.00
Repayment (2) CAM(•)
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8,474.00
$ 7,129.43 $ 8,474.00
$ 85,553.16 $ 101,688.0()
Repayment (4} CAM(•)
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7,129.43 $ 8,474.00
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7,129.43 $ 8.474.00
$ 7.129.43 $ 8,474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 7.129.43 $ 8.474.00
$ 85,553.16 s 101,688.00
~
[11 Repayment of July 2012 and August 2012 rent ($95.688.00) per
Second Amendment
121 Repayment of July 2013 through December 2013 deferred rent
1$171.106.231
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63.412. IS
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63,412.15
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63,412.15
$ $ $ 63.412.15 $ 63.412.15
$ $ $ 63.412.15 $ 63,412.15
$ s s 760,945.80 $ 76(),945.80
Current Proposed
Rent Rent Total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69.451 .99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69,451.99
$ $ $ 62.322.56 $ 69.451.99
$ $ $ 747,870.72 s 833,423.88
CuiTent Proposed
Rent Rent total Monthly Total Monthly
Abatement Deferment Payment Payment
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71,067.45
$ $ $ 63.938.02 $ 71,067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63,938.02 $ 71,067.45
$ $ $ 63.938.02 $ 71,067.45
$ $ $ 63.938.02 $ 71,067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ $ 63.938.02 $ 71.067.45
$ $ s 767,256.24 $ 852.809.40
122
EXHIBIT G -REVISED RENT SCHEDULE PURSUANT TO NEGOTIATIONS WITH NEW TRANSFEREES
05-Jun-13
Penn 17, LLC Proposed Rent Schedule
Lease Commencement: October 13, 2011
11/13/18
12/13/18
01 !13/1 9
02!13/19
03113/19
04/13/19
05/13/19
06113/19
07113/19
08/13/19
09113/19
Total:
Lease Year: 9
11113/19
12/13/19
01/13/20
02/13/20
03/13/20
04/13/20
05/13/20
06/13/20
07/13/20
08/13/20
09/13/20
Total:
01/13/21
02/13/21
03/13/21
04/13/21
05/13/21
06/13/21
07/13/21
08!13/21
09/13/21
Total:
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Base Rent
57.127.94
57.127.94
57.127.94
57.127.94
57,127.94
57.127.94
57.127.94
57.127.94
57.127.94
57.127.94
57.127.94
57.127.94
685.535.28
Bose Rent
58.841.78
58,841.78
58.841.78
58.841.78
58.841.78
58.841.78
58.841.78
58.841.78
58.841.78
58.841.78
58.841.78
58.841.78
706,11)1.36
Base Rent
60,607.03
60.607.03
60,607.03
60.607.03
60,607.03
60.607.03
60,607.03
60.607.03
60.607.03
60.607.03
60.607.03
60.607.03
727,284.36
Rent Commencement: Apr1114, 2012
Total Monthly
CAM(•) Payment
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65,601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65.601.94
$ 8.474.00 $ 65,601.94
$ 8.474.00 $ 65.601.94
$ 101,688.00 $ 787,223.28
Total Monthly
CAM(•) Payment
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8,474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8,474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 8.474.00 $ 67.315.78
$ 101.688.00 $ 807.789.36
Total Monthly
CAM(•) Payment
$ 8.474.00 $ 69,081.03
$ 8.474.00 $ 69.081.03
$ 8.474.00 $ 69.081.03
$ 8.474.00 $ 69.081.03
$ 8.474.00 $ 69,081.03
$ 8.474.00 $ 69.081.03
$ 8.474.00 $ 69.081.03
$ 8.474.00 $ 69,081.03
$ 8.474.00 $ 69,081.03
$ 8.474.00 $ 69,081.03
$ 8.474.00 $ 69,081.03
$ 8.474.00 $ 69,081.03
$ 1()1,688.00 s 828,972.36
t:!.Qru;_
(l) Repayment of July 2012 and August 2012 renl ($9.5.688.00) per
Second Amendment
(2) Repayment of July 2013 through December 2013 deferred rent
($171.106.23)
NOTE: CAM (•)-Pursuant to Section 18 of the Lease Summary, the CAM rate is subject to adjustment
to reflect the actual pro-rata share of Property Taxes and Insurance costs Incurred by the Landlord
during the previous calendar year.
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Penn17U.C 1ST YEAR MOJ'.ITHLYGROS.S REVENUE SALES & INCOME IFooo I NON At.COHOUC BEVERAGES !lEER WINE.-CHAMPAGNE JOUOR I PROMOTIONAl SALES OROSSOPeRAllNOREVENUE COST OF GOODS SOLD FOOD NON-AlCOHOUC BEV SEER WINE-CHAMP~GNE. UOUOR TOTAL COST OF GOODS SOlO I NET OPERAllNO REVENUES I PAYROLL AND BENEmS MANAGEMENT EXECUTIVE CHEF SOUSCHEF FRONT OF HOUSH1GR CHEf DE PARTIE BARTENO£RS EXPO WAJTSTAFF SUPPORT HOST/HOSTESS TA!<EOUT SUSHI CHEF JRSOUSCHEF PJisTRv CHEF COOK I COOK II COOK Ill COOK IV OISIWTJt!TY 80NUS IAAI/AGEI.IENT f~EDJCAL BENEFITS IPA'vROUL TAXES & SENEI'ITS TOTAL PAYROLL OTHER EXPENSES 1\0\!eRllSIIIG IIUTOM081LE EXPENSES BANK CHARGES BAR SUPPLIES CASH OVER/SHORT CHINAWARE CLEANING SUPPLIES COMPUTER EXPeNSES CREDIT CARD COMMISSIONS DecoRATIONS DUES & SUBSCRIPTIONS EMPI.OYEE RECRUITMENT EQUIPMENT RENTAl/LEASE FIRE/SECURITY GLASSWARE INSURANCE KITCHEN EQUP-UllllnES LICENSES & PERMITS LINENS MAINTENANCeCONTRACTS MUSK: & ENTERTAINMENT 65'14 5'14 15% 5'h 10% Ml% 15% 2So/o 25% 20'14 S~te.rnber O~obe:r Nove~« O&Cil\mbar J.-.ue.ry F~bruery Morell 1 S'iirii'EAR FIORE CASJlne July A•9'1o1 420,000 520,000 645,000 720,000 690,000 690,000 710,000 680,000 680,000 680,000 680,000 680,000 1ST MONTH .tND MONTH 3RO MON'!M 4Tlt loiONTlt 6TH MOJ'.ITH f>TH MONTtt 7TH MONTH 8TH MONTH tTH MONTH \01H loiOHTH 11TH MOJ'.ITH 12TH MONTH AC'I\IAI. 2l"l,OOO 21,000 63,000 21,000 42,000 420,000 81,900 ~.15<1 1$,750 5,2$0 8,400 ,..,.so 306,550 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D 0 0 ... 7,000 147,000 1$,000 750 200 1,000 750 2,500 6,000 $00 10,080 500 400 250 750 I~ 2,000 5,000 2,000 500 5,000 10,000 $,000 AC'I\IAI. Jl!I,OOO 26,000 78,000 2$,000 52,000 620,000 101,400 3,900 19,$00 6,500 10,400 141,700 378,100 182,000 162,000 t$,000 750 200 1,000 750 2.500 6,000 500 12,480 500 400 250 750 1:15 2,000 5,000 2,000 0 5,000 10,000 5,000 ACTUAL 419,250 32,250 96,7!>0 32,2$0 64,500 £U,I)OO 12s,ns 4,838 24,188 8,063 12,800 17&,7U 46!,2.18 225,750 2%5,760 15,000 750 200 t,OOO 750 2,$00 6,000 500 15,.C80 $00 400 250 750 125 2,000 5,000 2,000 0 5,000 10,000 5,000 ACTUAL 468,000 36,000 108,000 36,000 72,000 720,000 140,400 5,400 27,000 9,000 14,400 19G.200 62UOO 252,000 252,000 15,000 750 21)1) 1,000 750 2,500 $.000 500 17.280 500 400 250 750 125 2,000 5,000 2,000 500 5,500 10.<100 5,000 ACTUAl. 448,500 34,500 103,500 34,500 69,000 $$0,01)1) 134,550 5,115 25,875 8,825 1MOO 188,025 5l>l,,76 241,500 141,~0 15,000 750 200 1.000 750 2,500 6,000 500 16.~0 500 400 250 750 125 2,000 5,000 2,000 5,500 10.000 5,000 ACTUAL 446,51)1) 34,500 103,500 34.500 ss.ooo 890,1)1)1) 134,550 5,17$ 25,87$ 8,6'25 13,600 183,025 801;J7S 241,500 241.600 15,000 750 200 1,000 750 2,500 6,000 500 16,560 500 400 250 7$0 125 2,000 5,000 2,000 5,500 10,000 5,000 ACTUAL ~1,500 35.500 106,500 35,500 71,000 710,000 138,450 5,J2S 26,625 8,875 14,200 193,471 6te,52& 5,000 230,?$0 2:1$,750 15,000 750 200 1,000 750 2,500 6,000 500 17,040 $00 ~00 250 750 125 2,000 5,000 2,000 500 6,000 12,000 5,000 ACTUAL 442,000 34,000 102,000 34,000 68,000 0 tao,ooo 132,600 5,100 25,500 8,5()0 13,6oD 185,300 •u.too $,000 221,000 22&,000 15,000 750 200 1,000 750 2,500 6,000 ~0 le,J20 SOD 400 250 750 125 2,000 s,ooo 2,000 6,000 12,000 5,000 ACTUAL 442,000 34,000 102,000 3~.000 68,000 uo.ooo 132,600 5,100 25,500 8,$00 13.600 135,31)1) "''·700 5,000 221,000 l2G,OOO 15,000 750 200 1,000 750 2,500 6,000 500 16,320 soo 400 250 750 125 2,000 5,000 2,000 0 6,000 12.000 5,000 ACTUAL 402,000 34,000 102,000 34,000 68,000 580,000 132,600 5,100 25,500 8,500 13,600 18$,900 o4U.JGO $,000 204.000 21>'>,000 15,000 750 200 1,000 750 2,500 &,000 500 16,320 $00 400 250 7$0 125 2,000 5,000 2,000 500 6,$00 12.000 5,000 ACTUAL 442,000 34,01)1) 102,000 34,000 68,000 uo,ooo 132,600 5,100 25,500 8,500 13,600 185.300 49t,700 5,000 204,000 2oa.ooo 15,000 750 200 1,000 750 2,500 6,000 500 1&,320 500 400 250 750 125 2.000 5,000 2,000 6,500 12.000 5,000 ACTUAL 442,000 :M.OOO 102.000 34,000 68,1)1)() $.0,01)1) U2,600 5,100 25,500 9,500 U,800 185,100 4M,700 5,000 204,000 20•,ooo 15,000 750 200 1,000 750 ~.soo 6,000 500 16.320 500 400 250 750 125 2,000 5,000 2,000 S,500 12,000 s,ooo v .... 1 TOTAL$ 5,066,750 65% l89,750 5% 1,189,250 tS% 389,750 5% ns,50o 10% 7,.,5,000 100~ 1,521),02$ 30'J4 58.~ 1$% 292,31) 2$% 97,4l8 25% 155,900 20'14 2,124,118 27% S,I70,8U 73% ~ O'J4 O'J4 O'J4 ~ ~ ~ ~ O'J4 O'J4 O'J4 ~ ~ ~ ~ ~ ~ ~ --3(),000 t% 2,514,500 9'3% 2,604,600 33% 180,000 9,000 2,400 12,000 9,000 30,000 72,000 6,000 187,080 6,000 4.800 3.000 9,000 1,500 24,000 60,000 24.000 2,000 6$,000 132,000 60,000 2% 0% 0% 0% 0',4 0% 1% 1)% 2% 0% 0% 0% 0% 0% 0% 1% 0% 0% 1% 2% 1% EXHIBIT H 124
Ptm17U.C ~mb«r o ... ber Novwnbc:r De-oeml>• Ja,.,.ry Fel>ruory Millft,h 1 Siin\'EAR FiOOECASiilo J>#j 1\u;li.IR 1ST YEAR M0Nn4LY OR.oSs REIIENU£ 420,000 520,000 645,000 72JJ,OOO 6110.000 690,000 710,000 6&0.000 68(),000 6&Q,OOO 6&0,000 6&0.000 Y•rf 1ST MOtmi 2ND MONTH SRO MONTH 4TH MONTH mi MONTH OTH MONTH 7TH MONTH nH MONtH HH MONTH 10TH MOtmi 11TH MOHTH1:ml MONT!t TOTALS OFFICE SUPPI.IES 600 600 &00 600 600 600 600 ISOO 600 600 600 600 7,200 0% OPI:RAnNG SUPPLES $,000 6,000 6,000 6.000 6,000 6,000 6,000 6,000 6,000 6,000 6.000 6,000 72,000 t% PAYROLL EXPENSES (PAYCHElQ 1,000 1.000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1.000 12,000 <I'll PRINTING & REPRODUCTION 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1.000 1,000 1,000 1,000 1,000 12,000 0% PROFESSIONAL FEES 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,2$0 6,250 6,250 6,250 6,250 ?S,OOO 1% 125
l'om17U.C 1ST YEAR MONTHLY GROSS REVENUE R£PAIRS:Aflt CONOITlONING R£PIIIRS:BUII..DING REPAIRS :COMPUTeR R£PAIRS£U:CTRICAL & lo'.EC>WtlCAI. REP~SUPI'I.IE.S REPAIRS'.FIREISAFETY R£PAIRS:Fl..OOR CO\IElaNG R£PIUIUilf\JRNIT\J REPAIR R£PAIRS:UGHT 8UL8S R£PAJRS:t.oa<s 6 I<EYS REPAIRS:IOTa!EN R£PJIIRS;PAJN11NG & DECORATING REPAIRS;PEST CONfROL REPAIRS:PllJMBI>IG REPAIRS!TEI..EPHONE SjLVE!IWARE TELEPHONE TRAVEL & ENTER'TAI ... MENT UNIFORM UNIFORM CLEANING WASTE REMOVAL TOTAl. OTHER EXPENSES ELECTRIC GAS WATER unLmES TOTAL UTIUTIEs INCOME BEFORE FIXED EXPeNSeS fiXED EXPE!ISES RENT EXPENSE CAM ADiliTIOI<AI. RENT REP•••"-ENT TOTAL FIXE:Il £XPENSES N£T OPERA11HO INCOME sop~ • .,.,., Oc!»t>er NO\IttN:>et Otceh'tla January FebruaiV March 1 S'iirVEAR FIORE~ Jcjy AllguJt 420,000 ~20.000 645,000 no,ooo 690,000 690,000 7t0,000 680,000 680,000 680.000 tii!O,OOO 68C,OOO 1ST MONTH 2M) MONTH >RO r.ION111 4TH MONTH fTH MONTH 6TH MONTH 7TH I.IONTH fTH MON111 OTH MONTH lOTH MONTH ttTH MONTH tZTH MONTH ~ ~ ~ -~ ~ ~ -~ ~ ~ --~ ~ ~ ~ ~ ------~ ~ ~ ~ ~ ------~ ~ ~ ~ ~ m ~ m --m m m --~ -~ ~ ~ ~ ---~ 0 0 0 0 500 0 0 0 0 500 0 0 ~ ~ ~ ~ ~ ~ ~ ~ -~ ~ ~ 100 tOO 75 250 200 250 600 1,200 500 200 300 2,000 91)114 f,OOO 2,500 6,000 15,500 szpzo 18,1ia5 f;llf 0 27.1~ z•jon 100 tOO 75 250 200 250 600 1,200 500 zoo 300 2,000 t%.914 1,000 2,500 5,000 1UOO er .170 19,6&5 1,238 2,658 aD,Sll (7,280 100 \00 75 250 200 250 500 0 sao 1,200 500 200 300 2,000 98,4>0 a,ooo 2,500 5,000 1S.GUO 1)1,611 19,&115 ~;llf 2,6$1 "·", tDO,tT7 100 100 75 250 200 250 0 600 1,200 500 200 350 2,000 98.780 e.ooo 2,500 5,000 15,600 157,520 19,685 $,23$ 2,85& 30.581 1ZU$t 100 100 75 zso 200 250 0 600 1,200 500 200 350 2,000 t8p.!O 8,000 2,500 5,000 15,500 146,915 49,279 a.4n 8,057 05,110 .,,10i 100 10Q 75 250 200 250 500 500 600 1,200 500 200 ~0 2,000 U,&SO 8.000 2,500 5,000 16,500 146;415 47,644 8,474 1,057 GV75 IZ.NO 100 100 75 250 200 250 600 1,200 500 200 400 2.000 101)190 8,000 2,500 5,000 15,500 1114,115 47.144 8,474 8,057 £4,375 99,-110 100 100 75 250 200 250 600 1,200 500 200 -4()0 2,000 t9,870 8,000 2.500 5,000 15.500 1&:1,330 47,644 8,474 5,000 C1,S11 91,012 100 100 75 250 200 250 500 0 600 1,200 500 200 -4(JQ 2,000 100,170 8,000 2,500 5,000 15,500 1GU30 47,844 1,474 4.6<3 5,000 l5,M1 ..... , 100 100 75 250 200 250 ~0 1,200 500 200 450 2,000 101 .. 20 8,000 2,500 5,000 15,1!00 111,780 47, ... 4 1,238 20.400 5,000 11,412 17,291 100 100 75 250 200 250 0 600 1,200 500 200 .so 2,000 100,12<> 8,000 2,500 s,ooo 15,1!00 t",no 47,844 8.231 20,400 5,000 ...... 2 11,208 100 100 75 250 200 250 500 500 600 1.200 500 200 450 2,000 101,420 8.000 2,500 5,000 1UOO 168.780 41,1144 8.238 20,400 5,000 t1.&a2 17,25! v .. r1 TOTALS 6,(100 spoo 6,000 3,1100 1,200 1,000 2,<110 0% 01" n!4 ~ ~ Olio Ol(, 1,200 Oll. 1,200 Oll. soo 0% 3,000 0% 2,400 OlC. 3,000 0% 2,000 0% 1,000 0% 7,200 0% 14,400 0% s,ooo 0% 2,400 0% 4,500 0% 24,000 0% 1,1$0,38.0 16'% 96,000 30,000 60,000 166,000 I,C911,~8l 1% 0% 1% 2% 2!% 462,921 6% 100,038 1% 6S,7~ 1% 51.W5 1"' £85,6$1 t't. I,Z3l',0$5 10% 126
ASSUMPTIONS PENN 17
1st & 2nd Month Calculations
Covers
Restaurant Ba 200
Dinner 280
Lunch 150
TOTAL 630
TOTAL
AVG
Check
$12.00
$35.00
$22.00
days
3rd & 4th Month Calculations
AVG
Covers Check
Restaurant Ba 240 $12.00
Dinner 360 $35.00
Lunch 330 $22.00
TOTAL 930
TOTAL
5th & 6th Month Calculations
AVG
Covers Check
Restaurant Ba 260 $12.00
Dinner 380 $35.00
Lunch 300 $22.00
TOTAL 940
days
Catering
TOTAL
7th Month to 12th Month Ca l culations
Total
$2,400.00
$9,800.00
$3,300.00
$15,500.00 X
Total
$2 ,880.00
$12,600.00
$7,260.00
$22,740.00 X
Total
$3,120.00
$13,300.00
$6,600.00
$23,020.00 X
$0.00
_.. .. Revenue is increased by 5% across the board
2nd Year and 3rd Year Calculations
..... Revenue is in creased by 5% across the board
4th Year and 5th Year Calculations
•••• Revenue is increased by 5% across the board
30
30
30
$465,000.00
$465,000.00
$682,200.00
$0.00
$682,200.00
$690,600.00
$0.00
$690,600.00
127
ASSUMPTIONS PENN 17
1st & 2nd Month Calculations
Covers
Restaurant Ba 200
Dinner 280
Lunch 150
TOTAL 630
TOTAL
AVG
Check
$12.00
$35.00
$22.00
days
3rd & 4th Month Calculations
Covers
Restaurant Ba 240
Dinner 360
Lunch 330
TOTAL 930
TOTAL
AVG
Check
$12.00
$35.00
$22.00
5th & 6th Month Calculations
AVG
Covers Check
Restaurant Ba 260 $12.00
Dinner 380 $35.00
Lunch 300 $22.00
TOTAL 940
days
Catering
TOTAL
7th Month to 12th Month Calculations
Total
$2,400.00
$9,800.00
$3,300.00
$15,500.00 X
Total
$2,880.00
$12,600.00
$7,260.00
$22,740.00 X
Total
$3,120.00
$13,300.00
$6,600.00
$23,020.00 X
$0.00
.... Revenue is increased by 5% across the board
2nd Year and 3rd Year Calculations
* .. " Revenue is increased by 5% across the board
4th Year and 5th Year Calculations
.... Revenue is increased by 5% across the board
30
30
30
$465,000.00
$465,000.00
$682,200.00
$0.00
$682,200.00
$690,600.00
$0.00
$690,600.00
128
RESOLUTION TO BE SUBMITTED
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