99-23024 RESO
RESOLUTION NO.
99-23024
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A
SETTLEMENT WITH FRANKEL AND ASSOCIATES, INC., AS
REFERENCED IN THE ATTACHED CORRECTED AGREED ORDER,
FOR THE CONTINUED USE OF THE 8TH FLOOR OFFICE SPACE
AT HISTORIC CITY HALL, LOCATED AT 1130 WASHINGTON
AVENUE, UNTIL JUNE 15, 2000, SUBJECT TO THE TERMS AND
CONDITIONS OF THE PREVIOUSLY EXISTING LEASE
AGREEMENT BETWEEN THE CITY AND FRANKEL AND
ASSOCIATES, INC., DATED MARCH 15, 1987, AS AMENDED;
FURTHER APPROVING A SIMILAR SETTLEMENT WITH
AFFORDABLE LANDMARKS, INC., FOR THE CONTINUED USE OF
THE 4TH FLOOR OFFICE SPACE AT HISTORIC CITY HALL,
UNTIL JUNE 15,2000, SUBJECT TO THE TERMS AND CONDITIONS
OF THE PREVIOUSLY EXISTING LEASE AGREEMENT BETWEEN
THE CITY AND AFFORDABLE LANDMARKS, INC., DATED
OCTOBER 15, 1993, AS AMENDED; AND FURTHER AUTHORIZING
THE CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED
TO THE RESPECTIVE SETTLEMENTS
WHEREAS, the City and Frankel and Associates, Inc. previously entered into a Lease
Agreement, dated March 15, 1987, for the 7th and 8th floor office spaces at Historic City Hall,
located at 1130 Washington Avenue, Miami Beach, Florida; and
WHEREAS, the Lease term expired on March 14, 1997, and Frankel and Associates, Inc.
failed to timely exercise its option to extend said Lease, and the City properly notified Frankel and
Associates, Inc. that the Lease had been so terminated; and
WHEREAS, Frankel and Associates, Inc. thereupon filed an action against the City, seeking
declaratory relief through the Court, and the City properly responded to said Complaint; and
WHEREAS, in lieu of continued litigation, and in an effort to amicably reach a resolution,
the Administration and Frankel and Associates, Inc. have mutually agreed to the terms of the
attached Corrected Agreed Order (Exhibit 1); and
WHEREAS, the City and Affordable Landmarks, Inc. previously entered into a Lease
Agreement, dated October 15, 1993, for the 4th floor office space at Historic City Hall; and
WHEREAS, the Lease term expired on October 14, 1998, and Affordable Landmarks, Inc.
also failed to timely exercise its option to extend said Lease; and
WHEREAS, in light of the settlement agreed to with Frankel and Associates, Inc. the
Administration recommends that Affordable Landmarks, Inc. receive similar consideration; and
WHEREAS, the Administration and Affordable Landmarks, Inc. have mutually agreed to
the terms of the attached Settlement Agreement (Exhibit 2); and
WHEREAS, the Administration recommends that the settlements with Frankel Associates,
Inc. and Affordable Landmarks, Inc., respectively, be approved; and
WHEREAS, on December 22, 1998, the Finance and Citywide Projects Committee
considered the matter and concurs with the Administration's recommendations, as set forth herein.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the settlement with
Frankel and Associates, Inc., as referenced in the attached Corrected Agreed Order, for the continued
use of the 8th floor office space at Historic City Hall, located at 1130 Washington Avenue, until
June 15, 2000, subject to the terms and conditions of the previously existing Lease Agreement
between the City and Frankel and Associates, Inc., dated March 15, 1987, as amended, be approved;
and that a similar settlement with Affordable Landmarks, Inc. for the continued use of the 4th floor
office space at Historic City Hall until June 15,2000, subject to the terms and conditions of the
previously existing Lease Agreement between the City and Affordable Landmarks, Inc., dated
October 15, 1993, as amended, be approved; and further, that the City Manager be authorized to
execute all documents related to the respective settlements.
PASSED AND ADOPTED this 6 day of January, 1999.
ATTEST:
CITY CLERK
~~
MAYOR
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APPROVED p.S TO
FORM & LANGUAGE
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IN THE CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT
IN AND FOR MIAMI-DADE COUNTY, FLORIDA
FRANKEL & ASSOCIATES, INC.,
a Florida corporation,
General Jurisdiction Division
Case No. 98-21707 CA 09
Plaintiff,
vs.
THE CITY OF MIAMI BEACH,
a municipal corporation,
Defendant.
/
CORRECTED AGREED ORDER
lbis cause CaPle on for hearing on Plaintiff's Emergency Motion for Mandatory Injunctive
Relief, and the Court having been advised that the Parties have stipulated and agreed to the herein
order, it is
ORDERED and ADJUDGED:
1. That the Second Option to renew the Lease Agreement was not exercised by the
Plaintiff The Lease Agreement between the parties terminated on March 16, 1997, and Plaintiff
was allowed to remain in the premises as a Tenant-at-Will until September 30, 1998. On October
1, 1998, Plaintiff and any sub-tenants of the Plaintiff became a Tenant-at-Sufferance. The City
of Miami Beach as Landlord is entitled to immediate possession of the demised premises.
2. For and in settlement of all defensive issues raised in the above matter, the City
of Miami Beach will submit to the Commission for approval a new lease agreement with the
Plaintiff, for the eighth (8th) floor of Old City Hall, at the prorata rental Plaintiff would have
paid for the eighth (8th) floor portion of the premises under the 1987 Lease Agreement and
second option; the following terms shall be applicable:
a. The term of the new lease shall commence as of October 1, 1998 and shall
terminate as of 5 p.m., June 15, 2000.
b. All provisions of the 1987 Lease Agreement, which are not inconsistent with this
paragraph, shall be adopted and are incorporated into the new lease agreement for the eighth (8th)
Exhibit 1
Case No. 98-21707 CA 09
floor.
c. As a condition precedent to the entering of the new lease agreement, Plaintiff shall
pay its proportionate share of all real estate taxes on the eighth (8th) floor through and including
1998; Plaintiff shall pay its proportionate share of all real estate taxes on the seventh (7th) floor
through and including September 30, 1998. Plaintiff will receive credit for payments evidenced.
d. Within 30 days of this Agreed Order, Plaintiff shall submit as-built plans for any
improvements which have been installed within the demised eighth (8th) floor premises.
e. If the Plaintiff desires to terminate the new lease before June 15, 2000, it may do
so, provided that Plaintiff gives written notice to the City's Asset Manager, and City Manager
and obtains a written receipt therefore at least 60 days prior to the desired termination.
f. At this time the City has announced its intention to take possession of the eighth
(8th) floor premises on June 15, 2000 at 5:01 p.m., if for any reason, the City does not require
the use of said eighth (8th) floor -premises, and the Plaintiff obtains a written acknowledgment
from the City's Asset Manager on or before May 1, 2000 that the City does not require the use
of said eighth (8th) floor premises; then the Plaintiff can remain in the premises as a Tenant-at-
Will on a month to month basis under the same terms and conditions, subject to a 60 day written
notice of termination by the City.
g. Plaintiff is not financially responsible for the Business License fees of any of it
sub-tenants. The payment of said fees are not a condition of the new lease agreement. However,
all subtenants must have obtained consent of the Administration and City Commission and shall
meet all government requirements including but not limited to Business Licenses. Failure to
obtain Consent for Sub-leases and a Sub- Tenant's failure to obtain current Business License shall
be considered a material breach of the new lease agreement.
h. Upon written notification by the City of any default of the New Lease Agreement,
Plaintiff shall have 10 days within which to cure said default.
3. The Motion for Emergency Injunctive Relief is denied. Plaintiff takes a voluntary
dismissal of its complaint with prejudice.
4. The City of Miami Beach is hereby awarded a Judgement of Possession against
the Plaintiff as to any rights and/or possessory interest for the seventh (7th) floor, of Historic
City Hall located at 1130 Washington Avenue, Miami Beach, Florida. Upon written request of
Case No. 98-21707 CA 09
the City of Miami Beach a Writ of Possession directed to the Plaintiff and all those who claim
any interest by, through, or by virtue of the Plaintiff or sub-tenant of the Plaintiff shall issue
directing the Sheriff of Miami-Dade County to place the City of Miami Beach in possession of
the seventh (7th) floor.
5. This Court retains jurisdiction to enforce the terms and conditions of this Agreed
Order. Each of the parties shall be responsible for its own costs and fees.
Done and Ordered in Chambers this 2- I day of December, 1998.
fHOMAS S. WILSON, Jr.
Copies provided Counsel
Circuit Judge
3
CITY OF
MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
OFFICE OF THE CITY MANAGER
TELEPHONE: (305) 673-7010
FAX: (305) 673-7782
Robert Saland
Affordable Landmarks, Inc.
1130 Washington Avenue, 4th Floor
Miami Beach, Florida 33139
RE: Lease Agreement dated October 15, 1993, by and between Affordable
Landmarks, Inc. and the City of Miami Beach for the office space on the 4th
Floor of Historic City Hall, located at 1130 Washington Avenue, Miami Beach,
Florida (Demised Premises)
SETTLEMENT AGREEMENT
WHEREAS, the Second Option to renew the Lease Agreement was not exercised by
Affordable Landmarks, Inc.(Affordable). The Lease Agreement between the parties terminated on
March 16, 1997, and Affordable was allowed to remain in the premises as a Tenant-at- Will until
September 30, 1998. On October 1, 1998, Affordable and any sub-tenants of Affordable became a
Tenant-at-Sufferance. The City of Miami Beach as Landlord is entitled to immediate possession of
the Demised Premises.
WHEREAS, for and in settlement of all issues raised, or to be raised, in the above matter,
the City of Miami Beach will submit to the Mayor and City Commission for approval a modified
Lease Agreement with the Affordable, for the fourth (4th) floor of Old City Hall, as set forth below,
at the prorata rental Affordable would have paid for the fourth (4th) floor portion of the Premises
under the October 15, 1993, Lease Agreement and second option; the following terms shall be
applicable:
a. The term of the new Lease shall commence as of October I, 1998, and shall
terminate as of 5 p.m., June 15,2000.
b. All provisions of the 1993 Lease Agreement, which are not inconsistent with this
paragraph, shall be adopted and are incorporated into the new Lease Agreement for
the fourth (4th) floor.
c. As a condition precedent to the entering of the new Lease Agreement, Affordable
shall pay its proportionate share of all real estate taxes on the fourth (4th) floor,
through and including 1998. Affordable will receive credit for payments evidenced.
d. Within 30 days of this Settlement Agreement, Affordable shall submit as-built plans
Exhibit 2
for any improvements which have been installed within the Demised fourth (4th)
floor Premises.
e. If Affordable desires to terminate the new Lease before June 15,2000, it may do so,
provided that Affordable gives written notice to the City's Asset Manager, and
obtains a written receipt therefore at least 60 days prior to the desired termination.
f. At this time the City has announced its intention to take possession of the fourth (4th)
floor Premises on June 15,2000, at 5:01 p.m.. If for any reason, the City does not
require the use of said fourth (4th) floor Premises, and Affordable obtains a written
acknowledgment from the City's Asset Manager on or before May 1,2000, that the
City does not require the use of said fourth (4th) floor Premises; then Affordable can
remain in the Premises as a Tenant-at- Will, on a month to month basis, under the
same terms and conditions, subject to a 60 day written notice of termination by the
City.
g. Upon written notification by the City of any default of the new Lease Agreement,
Affordable shall have 10 days within which to cure said default.
IN WITNESS WHEREOF, the parties hereto have caused this Settlement Agreement to
be executed by their appropriate officials, as of this_day of , 1999.
CITY OF MIAMI BEACH, FLORIDA
By:
Witness
Sergio Rodriguez
City Manager
Witness
AFFORDABLE LANDMARKS, INC.
By:
Witness
Robert Saland
President
Witness
APPROVED AS TO
FORM & LANGUAGE
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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COMMISSION MEMORANDUM NO.
TO:
Mayor Neisen Kasdin and
Members of the City Commission
DATE: November 18, 1998
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
STATUS REPORT ON CITY-OWNED PROPERTIES WHICH ARE
LEASED TO OTHER ENTITIES (CITY AS LESSOR) AND PRIVATELY
OWNED PROPERTIES WHICH ARE LEASED BY THE CITY (CITY AS
LESSEE)
BACKGROUND:
In an effort to reduce the amount of capital being expended to lease property from the private sector
to house City personnel, and maximize and more efficiently use the existing City-owned inventory
for public purposes, on September 23, 1998, the Mayor and City Commission requested that the
Administration provide a comprehensive report on this matter.
Notwithstanding public rights-of-way, which include but are not limited to sidewalks, swale areas,
streets and street ends, the City currently owns approximately 300 properties. The majority of which
fall into the following categories: 1) parks/recreation facilities (including golf courses), 2) parking
lots, 3) public works facilities, 4) police and fire stations, 5) convention center sites, and
7) miscellaneous parcels (i.e. Colony Theater, vacant lots, etc).
There are currently four principal methods which the City uses to administer non-City use of City-
owned property: 1) Lease Agreements, 2) Concession Agreements, 3) Management Agreements, and
4) Revocable Permits. This report, and the respective supporting documents attached hereto, only
addresses Lease Agreements on City-owned property and Lease Agreements wherein the City is
Lessee.
AN AL YSIS
The City leases privately owned properties to house the Parking Department's administrative offices,
two locations for Police Department operations (North Beach and Bay Road), as well as fully
subsidizing the cost for the office space used by the Police and Fire Pension System, and providing
office space for the General Employees and Unclassified Employees/Elected Officials Retirement
System. The combined total office space the City leases is approximately 17,500 square feet of at
a cost of $244,911 per year. An additional 21,500 square feet of land was leased for a lot (for
Electrowave parking) at a cost of $161 ,250 yearly. This lease has been terminated.
continued....
AGENDA ITEM
DATE
Leased Property
Page 2
November 18, 1998
The following chart describes the leased locations and user Departments, and provides recommended
relocation alternatives. The chart reflects the City's annual rental obligations totals $406,220. The
proposed relocation alternatives represent an annual savings of $323, 190 to the City.
USER DEPARTMENT CURRENT LEASE SQ. FT. x RATE ANNUAL ACTION RECOMMENDED
LOCA TION EXPIRES RENT Relocate to:
Parking Administration 777 -17th Street 6/30/00 7000 x $14.76 $103,296 Historic City Hall (4th or 8th FL)
Parking Operations as above as above as above as above Historic City Hall (1st FLNo.)
Police & Fire Pension 605 Lincoln Rd. at will* 2500 x $23.43 $58,575 I) 701 5th St.
2) 555-17th Street, or
3) Historic City Hall (4th or 8th
FL)
Police Operations 1833 Bay Rd. 1/31/01 6000 x $12.00' $72,000 Remain as is
Police Operations (DVU) 6988 Indian M-to-M 2000 x $5.52 $11,040 Remain as is
Creek
Electrowave Parking 1100 - 5th Street 12/14/98 21500 x $7.50 $161,250 Terminate upon expiration
TOTAL ANNUAL RENT: $406,230
* lease may be terminated if the City provides for suitable accommodations within a City-owned facility.
NOTE: Information obtained by the Community and Economic Development Department through an informal survey of office space in the
South Beach area suggested that the rate for median office space in the area ranged from $13.00 to $22.00 per square foot.
The following Departments are currently located in City-owned facilities. However, the space which
they occupy has been deemed inadequate and relocation alternatives have been recommended. In
the case of Fire, relocation of Fire Administration and Prevention represents a $2 million cost
avoidance to the City which is the estimated cost of new facilities at Fire Station #2 that would
otherwise be necessitated.
DEPARTMENT LOCA nON SQ. FT. ACTION RECOMMENDED
NAME Relocate to:
Fire Administration 2300 Pinetree (FS#2) 1300 Historic City Hall (7th FL)
Fire Prevention 2300 Pinetree (FS#2) 1652 Historic City Hall (1st FLSo.)
Emp/Elect. 0 fficialsPension City Hall (3rd FI) 460 City Hall (lsr FL)
Arts/Cu I ture/Entertainment City Hall (4th FI) 1300 Historic City Hall (4th or 8th FL)
or
555-17th Street
Over the past five years, the City of Miami Beach has made available space in publicly owned
facilities at a nominal cost to not-for-profit organizations. Private, for profit, entities lease City-
owned space at market rates. There are existing leases to private entities at what is deemed below
market rates. Leases for office space with private, for profit, entities are primarily concentrated in
Historic City Hall.
continued....
Leased Property
Page 3
November 18, 1998
Currently, the City as Lessor, leases approximately 169,026 square feet of interior improved space
at eighteen (18) separate City-owned facilities, and generates approximately $317,221 per year (this
includes space which is provided to Miami-Dade County for three public libraries, and to
approximately 16 not-for-profit organizations). Additionally, the City as Lessor, leases
approximately 127,892 square feet of land and air-rights at six (6) City-owned properties, which
generate approximately $71,859 yearly.
Some ofthe leased sites are provided for one dollar ($1.00) per year, or for a very nominal fee, and
include organizations such as the Performing Arts Network (P AN), the Florida Dance
Association (FDA), the Jewish Community Center (ICC), the University of Florida, Holocaust
Memorial and previously included the Florida Entertainment Commission and the Dade Marine
Institute. Additionally, Miami-Dade County's Community Action Agency, which operates several
programs in Miami Beach, also occupies space in one of the City's facilities. Attached is a
comprehensive list detailing each of the leased sites and its respective tenant.
The Administration has modified the model that is used for our lease agreements to require
organizations to pay their pro-rata share of operating expenses. All lease agreements which have
been entered into since November of 1996, provide that the lessees, in addition to the rent payment,
pay any sales, use or excise tax(es), their proportionate share of operating expenses and utility
charges including, but not limited to ad valorem taxes, electricity, water, gas, telephone, garbage
disposal and maintenance costs. Additionally, since November of 1996, all leases to not-for-profit
organizations, which have been afforded nominal rates, have been designed to sunset no later than
May of 1999.
The Office of Asset Management recently requested and compiled information from all City
Departments related to their current and future space use requirements. This information will be
used to determine the most effective use of our property inventory while addressing each
Department's needs. The Administration's long term goal is to maximize the revenue generated from
City-owned lands and facilities, and to eliminate or minimize the amount of property which the City
leases from others. The following list of priorities will be addressed towards this end:
.
upd~te and re-establish a comprehensive portfolio of all City-owned property to
better manage these assets
.
identify all unused and under-utilized property owned or controlled by the City
.
assess each Department's current and future staff space needs in order to determine
the feasibility of relocating all, or part of each operation, into the unused or under-
utilized space
.
assess each Department's current and future programming needs in order to
determine the feasibility of using the unused or under-utilized space for those
purposes
continued....
Leased Property
Page 4
November 18, 1998
· determine the market rates for any unused or under-utilized space that is not used by
the City
· establish a policy and process to effectively market any unused space
RECOMMENDATION
Based on the City's existing space needs and the directive to effectively utilize existing resources,
it is recommended that the Mayor and City Commission endorse the proposed recommended
relocation alternatives which encompass the following:
(I) Action requested: Endorsement of the following relocation recommendations
USER DEPARTMENT S.F. OCCUPIED RELOCA TION SITE RENT SAVINGS TIME
FRAME
Fire Department Administration 1585 Historic City Hall (7th FI) $0 ASAP
Fire Prevention Bureau 2449 Historic City Hall (1st FI) $0 ASAP
Employees and Elected Officials Pension 1500 City Hall (1st Fl) $0 ASAP
Police and Fire Pension 2500 701 5th St. $58,575 ASAP
Arts/Culture/Entertainment Office 1500 I) 555 - 17th Street . . ...... . $0 ASAP
2) Historic City Hall (4th or 8th $0 June of2000
FI) ..................... .
Parking Administration 1585 Historic City Hall (4th or 8th FI) $103,296 June of 2000
Parking Operations 2300 Historic City Hall (7th FI) As Above June of 2000
Electrowave Parking Cancel $161,250 Dec. 14. 1998
TOTAL $323,121
(II) Action Requested:
Policy direction on the future use of the City-owned property located at 555-17th Street, which
currently houses the following:
USER DEPARTMENT SQUARE FEET OCCUPIED ANNUAL RENT LEASE TERM EXPIRES
Concert Association of Florida 4375 S.F. $1485/yr. Month - to-Month
Performing Arts Network (PAN) 3424 S.F. $1 March 1999
Florida Dance Association 1023 S.F. $1 May 1999
Miami Beach Employees Federal Credit 1635 S.F. $0 No Lease
Union
continued....
Leased Property
Page 5
November 18, 1998
(III) Action Requested: Approval of the following recommendations with regard to pending
litigation/eviction of certain tenants located at Historic City Hall:
· Frankel and Associates' lease on the 7th and 8th Floor expired and they failed to
exercise their 2nd renewal option. Frankel filed an action for declaratory relief
against the City. A settlement proposal was reached that requires that Frankel
relinquish and vacate the 7th Floor and retain use ofthe 8th floor space until June of
2000
Recommendation: Approve the proposed settlement
· Affordable Landmark's lease on the 4th Floor expired. A proposed settlement
provides that Affordable retain use of the 4th floor space until June of2000
Recommendation: Approve and offer terms consistent with Frankel's proposed
settlement
· University of Florida's School of Architecture lease of the 3rd Floor expired. No
eviction or renegotiation of the lease has been pursued.
Recommendation: Remain as month-to-month tenants
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T:\AGENDA \ 1999VAN0699\REGULAR\PROPRPT.CC 11/10/98
ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
:lp:\\ci.miami-beach.f1. us
~ITY OF MIAMI BEACH
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. ~
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: January 6, 1999
Sergio Rodriguez
City Manager
A RESOLUTION APP VING A SETTLEMENT WITH FRANKEL AND
ASSOCIATES, INC., AS REFERENCED IN THE A TT ACHED CORRECTED
AGREED ORDER, FOR THE USE OF THE 8TH FLOOR OFFICE SPACE
AT HISTORIC CITY HALL, LOCATED AT 1130 WASHINGTON A VENUE,
UNTIL JUNE 15,2000, SUBJECT TO THE TERMS AND CONDITIONS OF
THE PREVIOUSLY EXISTING LEASE AGREEMENT BETWEEN THE
CITY AND FRANKEL AND ASSOCIATES, INC., DATED MARCH 15, 1987,
AS AMENDED; FURTHER APPROVING A SIMILAR SETTLEMENT WITH
AFFORDABLE LANDMARKS, INC. FOR THE USE OF THE 4TH FLOOR
OFFICE SPACE AT HISTORIC CITY HALL UNTIL JUNE 15, 2000,
SUBJECT TO THE TERMS AND CONDITIONS OF THE PREVIOUSLY
EXISTING LEASE AGREEMENT BETWEEN THE CITY AND
AFFORDABLE LANDMARKS, INC., DATED OCTOBER 15, 1993, AS
AMENDED; AND FURTHER AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL DOCUMENTS RELATED TO THE RESPECTIVE
SETTLEMENTS
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
On November 18, 1998, the City Commission referred the Status Report on City-owned properties
which are leased to other entities (City as lessor) and privately owned properties which are leased
by the City (City as Lessee) to the Finance and Citywide Projects Committee. (Status report
attached.) -
The Finance and Citywide Projects Committee met on December 22, 1998, and referred the action
items requested in the status report back to the City Commission. Two of the issues addressed by
the Committee related to the settlements between the City and Frankel and Associates, Inc., and the
City and Affordable Landmarks, Inc. The issues are as follows:
· Frankel and Associates' lease of the 7th and 8th Floor expired and they failed
to exercise their 2nd renewal option. Frankel filed an action for declaratory
Continued.....
AGENDA ITEM
DATE
~l6
1-(..~9q
relief against the City. A settlement proposal was reached that requires that
Frankel relinquish and vacate the 7th Floor and retain use of the 8th floor space
until June of2000.
· Affordable Landmark's lease of the 4th Floor expired and they failed to exercise
their renewal option. A proposed settlement provides that Affordable retain use
of the 4th floor space until June of 2000.
ANALYSIS:
The Finance and Citywide Projects Committee concurred with the recommendations of the
Administration to approve the settlements with Frankel and Associates, Inc. and Affordable
Landmarks, Inc. in order to conclude the pending litigation/eviction related to the respective Lease
Agreements. Said settlements would require that:
· Frankel and Associates vacate its 7th floor office space within 30 days, and permit
them to remain in the 8th floor office space until June 15,2000, subject to the terms
and conditions of the previously existing Lease Agreement ($ 7.29 per square foot,
plus a proportionate share of common area maintenance costs and operating
expenses).
· Affordable Landmarks would retain use of the 4th floor space until June 15,2000,
subject to the terms and conditions of the previously existing Lease Agreement
($13.02 per square foot, plus a proportionate share of common area maintenance
costs and operating expenses).
CONCLUSION:
It is recommended that the City Commission adopt the Resolution approving the settlement with
Frankel and Associates, Inc., as referenced in the attached Corrected Agreed Order, related to its use
of the 8th floor office space at Historic City Hall, further approving a similar settlement with
Affordable Landmarks, Inc. related to its use of the 4th floor office space at Historic City Hall, and
authorizing the City Manager to execute all documents related to each of the respective settlements.
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