C4C-Ref- FCWPC - South Shore Community Center(9 MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibecchA.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members
FROM: Jimmy L. Morales, City Manager
DATE: March 5, 2014
SUBJECT: REFERRAL TO THE FINANCE & ITYWIDE PROJECTS COMMITTEE - A
DISCUSSION REGARDING SOUTH SHORE COMMUNITY CENTER
ADMINISTRATION RECOMMENDATION
Refer the matter to the Finance & Citywide Projects Committee for discussion.
BACKGROUND
The South Shore Community Center (the "Center") is located at 833 6th Street and is owned by
the City of Miami Beach {the "City"). The Center provides space to various not-for-profit,
community service organizations that provide assistance to the Miami Beach community.
The City completed renovations to the Center in 2008 and executed new agreements with all
the tenants who occupied the Center prior to said renovations. All the agreements are for an
initial term of four years (4) years and three hundred sixty four (364) days, commencing on
October 2, 2009 and ending on September 30, 2014 (the "Term"). Furthermore, all the
agreements contain provisions for one (1) additional five (5) year renewal, subject to certain
terms and conditions.
The Center is currently 100% occupied by the following four (4) tenants:
1. Miami Dade County Community Action Agency ("CAA") has a lease for the use of 2,076
square feet of office space to operate the "South Beach Community Enrichment Center''
which empowers economically disadvantaged individuals, families and communities to
achieve self-sufficiency through resource mobilization, service delivery, education and
advocacy.
2. Jewish Community Services of South Florida. Inc. {"JCS") has two (2) lease agreements
and a concession agreement. The first lease agreement is for use of 289 square feet of
storage space required by JCS to operate its "senior meals program". This program
provides recreational activities and a mid-day meal to residents that are 60 years and
older.
The concession agreement is for use of the 2, 792 square foot Auditorium space required
by JCS to conduct its recreational activities and serve the aforementioned mid-day meal.
A concession agreement was determined to be the appropriate mechanism by which to
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Agenda Item C l( C
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Commission Memorandum -South Shore Community Center
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guarantee JCS part-time use of the space on weekdays from 8:00 AM to 2:00 PM and
still allow the space to be available for use by the City and/or general public during the
afternoon, evening and weekend hours. The Miami Beach Parks and Recreation
Department will be coordinates the use and/or rental of the Auditorium pursuant to its
rules and regulations for rental of City-owned facilities.
The second lease agreement is for use of 445 square feet of office space required by
JCS to operate its "senior ride program". This program provides door-to-door bus
transportation services to residents that are 60 years and older.
3. Little Havana Activities and Nutrition Centers of Dade County, Inc. ("LHANC") has a
lease agreement and a letter agreement. The lease agreement is for use of 2,919
square feet of space required by LHANC to operate its "Rainbow lntergeneration
Childcare Center''. This program provides childcare service to approximately 60 children.
The letter agreement is for use of the adjacent exterior 7,002 square foot playground
space required by LHANC to provide the children an outdoor recreation play area. A
letter agreement was determined to be the appropriate mechanism by which to
guarantee LHANC sole use of the space thus providing the children with a safe and
secure environment. The playground space is not "under-roof' and therefore, not
included as part of the buildings leasable square footage.
4. UNlOAD of Miami Beach, Inc. ("UNlOAD") has a lease for the use of 3,826 square feet
of office space on the 2nd floor and an additional 329 square feet of storage space on the
151 floor. UNlOAD provides counseling, education, and employment training services to
the City's community.
It is important to emphasize that all of these tenants are not-for-profit, community service
organizations that provide assistance to the Miami Beach community. As such, the City does
not charge base rent and only charges common area maintenance ("CAM") fees to recoup
specific expenses incurred by the City to operate the Center. These expenses are limited to
electrical service, water service, sewer service, stormwater costs and janitorial service to the
common areas and inside the tenant's spaces. The current CAM fee is $7.68 per square foot
and is based on operating expenses to the City which were calculated in 2009. The
agreements allow the City to increase the CAM fees on an annual basis consistent with the
actual cost of operating the Center. A summary of the agreements and rental rates is attached
hereto as Exhibit A
Notwithstanding the foregoing, as per the renewal prov1s1ons in all the agreements at the
Center, " ... within ninety (90) days prior to the expiration of the Term, the City Manager may
elect to re-negotiate a reasonable increase in the Rent, and shall provide Tenant with written
notice of such election. If, following good-faith negotiations between the City and Tenant, the
parties are unable to agree, then the City Manager may further elect to not renew the
Agreement, in which case the Agreement will terminate and the City shall have no further
liability or obligation to Tenant."
Furthermore, the agreements may be terminated by either party, without cause and for
convenience at any time during the Term (including any renewal term), upon furnishing thirty
(30) days written notice to the other party.
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Commission Memorandum -South Shore Community Center
March 5, 2014
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Considering all of the agreements are at below market rental rates, and since they are all within
seven (7) months of the expiration dates (9/30/14}, the Administration seeks direction from the
Finance & Citywide Projects Committee regarding this matter. If the City elects to renegotiate a
reasonable increase in the rent, the City Manager must provide written notice by July 1, 2014.
CONCLUSION
The Administration recommends that the Mayor and the City Commission refer the matter to the
Finance & Citywide Projects Committee for discussion and further direction.
JLM/KGB/MAS/MM M
T:\AGENDA\2014\March\South Shore Community Center REFFERAL.docx
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Commission Memorandum -South Shore Community Center
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Exhibit A
Agreement Summary
Tenant Suite Sq. Ft. Agreement Expiration Renewal
MDC Community Action Agency 1st Floor 2,076 Lease 09/30/14 (1) for 5 years
Office
JCS of South Florida, Inc. -Meals 1st Floor 289 Lease 09/30/14 (11 for 5 years
Storage
JCS of South Florida, Inc. -Meals 1st Floor 2,792 Concession 09/30/14 (1) for S years
Auditorium
~cs of South Florida, Inc. -Ride 1st Floor 445 lease 09/30/14 (1) for 5 years
Office
LHANC of Dade County, Inc. 1st Floor 2,919 Lease 09/30/14 (1) for 5 years
Daycare
LHANC of Dade County, Inc. lsi Floor 7,002 letter 09/30/14 (1) for 5 years
Pla..,.ground
UNlOAD of Miami Beach, Inc. lsi Floor 329 Lease 09/30/14 (1) for 5 years
2nd Floor 3,826
Rent
Base C.A.M. Total
Annually $ 1.20 $ 15,935.28 $ 15,936.48
PSF $ 0.00 $ 7.68 $ 7.68
Annually $ 1.20 $ 2,218.32 $ 2,219.52
PSF $ 0.00 $ 7.68 $ 7.68
Annually $ 1.20 $ 5,357.88 $ 5,359.08
PSF $ 0.00 $ 1.92 $ 1.92
Annually s 1.20 $ 3,415.80 $ 3,417.00
PSF $ 0.00 $ 7.68 $ 7.68
Annually $ 1.20 $ 22,406.16 $ 22,407.36
PSF $ 0.00 $ 7.68 $ 7.68
Annually $ 0.00 $ 0.00 s 0.00
PSF $ 0.00 $ 0.00 $ 0.00
Annually $ 1.20 $ 31,893.72 $ 31,894.92
PSF $ 0.00 $ 7.68 $ 7.68
Note: JCS of South Florida, Inc. pays 25% of CAM charges ($1.92 of $7.68) because they only use the
auditorium part-time and the City retains access and use as needed.
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