2004-25682 Reso
RESOLUTION NO.
2004-25682
A RESOLUTION OF THE MA VOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND
AUTHORIZING THE MA VOR AND CITY CLERK TO EXECUTE A
CONCESSION AGREEMENT BY AND BETWEEN THE CITY OF
MIAMI BEACH AND PRODUCTION SUD, INC., FOR THE
MANAGEMENT AND OPERATION OF AN ANTIQUE AND
COLLECTIBLES MARKET IN THAT PORTION OF THE
LINCOLN ROAD PUBLIC RIGHT-OF-WAY, BETWEEN
WASHINGTON AVENUE AND PENNSYLVANIA AVENUE, AND
IN THAT PORTION OF THE DREXEL AVENUE RIGHT-OF-WAY,
BETWEEN LINCOLN LANE SOUTH AND LINCOLN LANE
NORTH; SAID AGREEMENT HAVING AN INITIAL TERM OF
ONE (1) YEAR, COMMENCING ON OCTOBER 1, 2004, AND
EXPIRING ON SEPTEMBER 30, 2005, WITH AN OPTION TO
RENEW, AT THE CITY'S SOLE DISCRETION, FOR AN
ADDITIONAL ONE VEAR TERM, SUBJECT TO THE TERMS
PROVIDED IN THE AGREEMENT
WHEREAS, on July 31,2002, the Mayor and City Commission adopted Resolution
No. 2002-24947, authorizing the Administration to issue a Request for Proposals (RFP) for
the management and operation of an antique and collectibles market on Lincoln Road,
Miami Beach, Florida; and
WHEREAS, on March 3, 2003, RFP No. 25-02/03 was issued, responses were
received and evaluated, and recommendations were forwarded to the Mayor and City
Commission; and
WHEREAS, on July 30, 2003, the Mayor and City Commission adopted Resolution
No. 2003-25269, authorizing the Administration to enter into negotiations with Production
Sud, Inc. (Concessionaire) for the operation and management of an antique and
collectibles market on Lincoln Road; and
WHEREAS, the Administration has successfully negotiated the foregoing
Concession Agreement with Production Sud, Inc., for the operation and management of
the Lincoln Road Antique and Collectibles Market, in that portion of the public right-of-way
known as Lincoln Road (between Washington Avenue and Pennsylvania Avenue) and in
that portion of the Drexel Avenue right-of-way (between Lincoln Lane North and Lincoln
Lane South), said Agreement commencing on October 1, 2004, and expiring on
September 30, 2005, with an option to renew, at the City's sole discretion, for an additional
one (1) year term.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission approve and authorize the Mayor and City Clerk to execute the attached
Concession Agreement by and between the City Of Miami Beach and Production Sud, Inc.,
for the Management and Operation of the Lincoln Road Antique and Collectibles Market in
that portion of the Lincoln Road Public Right-of-Way, between Washington Avenue and
Pennsylvania Avenue and in that portion of the Drexel Avenue Right-of-Way between
Lincoln Lane North and Lincoln Lane South; said Agreement commencing on October 1,
2004, and expiring on September 30, 2005, with an option to renew, at the City's sole
discretion, for an additional one (1) year term, subject to the terms provided in the
Agreement.
PASSED AND ADOPTED this 8th day of September, 2004.
~r PM~
CITY CLERK
ATTEST:
JMG:CMC:JD:rlr
F:\DDHP\$ALL \ASSE1\MARKETS\ANTIQUES&COLLECTIBLES\ANTIQUE&COLLECTIBLES,RES.DOC
APPROVED AS TO
FORM & LANGUAGE
& FOR EXEcunON
fI/J% y
Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution Approving A Concession Agreement Between The City And Production Sud, Inc., For
The Management and Operation Of An Antique and Collectibles Market On Lincoln Road, Between
Pennsylvania and Washington Avenues, With An Initial Term Of One Year (October 1,2004 to
September 30,2005), With An Option To Renew, At The City's Sole Discretion, For An Additional
One Year Term.
Issue:
Shall the Mayor and City Commission approve the Agreement with Production Sud for the Lincoln
Road Anti ue and Collectibles Market?
Item Summary/Recommendation:
On July 31, 2002, the Mayor and City Commission approved the issuance of RFP 25-02/03 for the
operation and management of an antique and collectibles market on Lincoln Road. Said RFP was
issued, and proposals received, and after an evaluation/selection process, recommendations
were forwarded to the Mayor and City Commission. On July 30, 2003, the Mayor and City
Commission approved the selection of Production Sud, Inc. and authorized the Administration to
negotiate the concession agreement.
The Administration and Production Sud have negotiated and agreement has been reached on the
Concession Agreement for Lincoln Road Production Sud has agreed to pay the City a annual
minimum guaranteed amount, equal to 100% of its prior fiscal year (2003) gross receipts, or
12.5% percent of its gross receipts, whichever is greater. If 2004 revenues exceed 2003
revenues, the payments will increase as follows; 1) if revenues exceed110% of prior year
revenues, an additional 2,5% of those revenues that exceed 100% through and including 120% of
prior year revenues, will be remitted; and 2) if revenues exceed 120% of prior year revenues, an
additional 2,5% of those revenues that exceed 120% of prior year revenues will also be remitted.
A security deposit, equal to approximately one twelfth of the minimum guarantee amount, will be
provided. The agreement has an initial term of one year (October 1, 2004 to September 30, 2005),
with an option to renew, at the City's discretion, for an additional 1 year term.
The Administration recommends that the Mayor and City Commission adopt the Resolution.
Advisory Board Recommendation:
I
Financial Information:
Source of Amount Account Approved
Funds: 1
D 2
3
4
Finance Dept. Total
Ci Clerk's Office Le islative Trackin
Christina Cuervo/Jose Damien
Si n-Offs:
Department Director Assistant City Manager
F :\DDHP\$ALL IASSETlMarkelslAnliques&CollectibleslAnlique&Collectibles, SUM,doc
City Manager
AGENDA ITEM
DATE
R7H
q~g-Ov
CITY OF MIAMI BEAC,H
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fJ.us
COMMISSION MEMORANDUM
To: Mayor David Dermer and
Members of the City Commission
From: Jorge M. Gonzalez Oflc,,:.t;iIL
City Manager
Date: September 8, 2004
Subject: 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 A CONCESSION AGREEMENT BY AND
BETWEEN THE CITY OF MIAMI BEACH AND PRODUCTION SUO, INC., FOR
THE MANAGEMENT AND OPERATION OF AN ANTIQUE AND
COLLECTIBLES MARKET IN THAT PORTION OF THE LINCOLN ROAD
PUBLIC RIGHT-OF-WAY, BETWEEN WASHINGTON AVENUE AND
PENNSYLVANIA AVENUE, AND IN THAT PORTION OF THE DREXEL
AVENUE RIGHT-OF-WAY, BETWEEN LINCOLN LANE SOUTH AND
LINCOLN LANE NORTH; SAID AGREEMENT HAVING AN INITIAL TERM OF
ONE (1) YEAR, COMMENCING ON OCTOBER 1, 2004, AND EXPIRING ON
SEPTEMBER 30, 2005, WITH AN OPTION TO RENEW, AT THE CITY'S SlE
DISCRETION, FOR AN ADDITIONAL ONE YEAR TERM, SUBJECT TO THE
TERMS PROVIDED IN THE AGREEMENT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANAL YSIS
On July 31,2002, the Mayor and City Commission adopted Resolution No. 2002-24947,
authorizing the Administration to issue a Request for Proposals (RFP) for the management
and operation of an antique and collectibles market on Lincoln Road. On March 3, 2003,
RFP No. 25-02/03 was issued, responses were received and after an evaluation and
selection process, recommendations were forwarded to the Mayor and City Commission.
On July 30, 2003, the Mayor and City Commission adopted Resolution No. 2003-25269,
authorizing the Administration to enter into negotiations with Production Sud, Inc.
(Concessionaire) for the operation and management of an antique and collectibles market
on Lincoln Road. '
The Administration has successfully negotiated the foregoing Concession Agreement with
Production Sud, Inc., for the operation and management of the Lincoln Road Antique and
Collectibles Market, in that portion of the public right-of-way known as Lincoln Road
(between Washington Avenue and Pennsylvania Avenue) and in that portion ofthe Drexel
Avenue right-of-way (between Lincoln Lane North and Lincoln Lane South). Said
Agreement has an initial term of one (1) year, with a commencement date of October 1,
2004, and an expiration date of September 30, 2005. The Agreement also provides for an
option to renew for an additional one (1) year term, at the City's sole discretion.
1. Financial Remunerations to the City:
a. Percentaqe of Gross:
Production Sud has agreed to remit to the City, on a monthly basis, twelve
and one half (12.5%) percent of its gross receipts. In the event that
Production Sud's fiscal year 2004 revenues exceed the previous fiscal year
(2003) revenues, Production Sud agrees to increase its payments to the City
in accordance to the following scale:
I. if revenues exceed 110% of prior (2003) fiscal year revenues,
Production Sud shall remit to the City an additional 2.5% of those
revenues that exceed 100% through and including 120% of the prior
year revenues; and
ii. if revenues exceed 120% of prior (2003) fiscal year revenues,
Production Sud shall remit to the City an additional 2.5% of those
revenues that exceed 120% of the prior year revenues to the City.
b. Minimum Guarantee (MG):
Production Sud has agreed to pay the City an annual financial remuneration
to the City equal to the greater of either the aforementioned twelve and one
half (12.5%) percent of its gross revenues, or a minimum guaranteed amount
of $31 ,000 (based on approximately 100% of Production Sud's actual fiscal
year 2003 revenues remitted to City of $31,720.50, via their respective
Special Event Permits).
c. Security Deposit:
Production Sud will provide a security deposit, the amount of $2,500, (an
amount equal to approximately one twelfth (1/12th) of the Minimum
Guarantee amount), based on the actual of revenues remitted to the City, via
its Special Events Permit for fiscal year 2003).
The Administration recommends that the Mayor and City Commission approve the
Concession Agreement by and between the City of Miami Beach and Production Sud, Inc.
for the management and operation of the Lincoln Road Antique and Collectibles Market in
that portion of the Lincoln Road Public Right-of-Way, between Washington Avenue and
Pennsylvania Avenue and in that portion of the Drexel Avenue Right-of-Way between
Lincoln Lane North and Lincoln Lane South; said Agreement commencing on October 1,
2004, and expiring on September 30, 2005, with an option to renew, at the City's sole
discretion, for an additional one (1) year term, subject to the terms provided in the
Agreement.
JMG\cfflt\J~
F:\DDHP\$ALL \ASSEl\Markets\Antiques&Collectibles\Antique&Collectibles,MEM,doc