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HomeMy WebLinkAbout503-2005 RDA Reso RESOLUTION NO. 503-2005 ARESOLUTIONOFTHECH~RMANANDMEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE A MODIFICATION TO THE SOVEREIGNTY SUBMERGED LAND LEASE NO. 130765469 AMONG THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY AND THE TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA FOR THE MIAMI BEACH MARINA, PURSUANT TO THE REQUEST OF THE STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION TO CLARIFY THE EXISTING USES AT THE MIAMI BEACH MARINA WHEREAS, on January 21, 1986, the City of Miami Beach ("City") and the Trustees of the Internal Improvement Trust Fund of the State of Florida ("Trustees") entered into Sovereignty Submerged Land Lease No. 130765469, as recorded in Official Record Book 13020, Pages 2520 through 2526, of the Public Records of Miami-Dade County, Florida, for the Miami Beach Marina (the "Submerged Land Lease"); and WHEREAS, on June 16, 1990, the City authorized an amendment to the Submerged Land Lease, as recorded in Official Records Book 15593, Pages 1915 and 1916 of the Public Records of Miami-Dade County, Florida; and WHEREAS, on October 6, 1993, the City authorized a further amendment to the Submerged Land Lease, as recorded in Official Records Book 16509, at Page 3694 of the Public Records of Miami-Dade County, Florida and Official Records Book 16171, Page 673; and WHEREAS, the Florida Department of Environmental Protection (DEP), acting on behalf of the Trustees, has requested further amendments to the Submerged Land Lease, attached and incorporated hereto as Exhibit "A," to conform the description of the facilities in the Lease to the presently existing Marina facilities, including the widened north breakwater, and to update the uses permitted in the Submerged Land Lease areas; and WHEREAS, on October 6, 1999, the aforementioned action was deferred by the City Commission/RDA Board; and WHEREAS, on March 7, 2000, the Florida Department of Environmental Protection forwarded a revised lease Agreement, in which further revisions were provided by the State, requesting execution of the modified Agreement within thirty (30) days after receipt of the letter, however, such proposed further revisions sought to prohibit the existing gambling vessel from docking within the Submerged land lease area; and WHEREAS, after extensive negotiations, DEP has agreed, and the proposed amended language reflects DEP's agreement, that the one existing gambling vessel (Le. one sublease for a gambling vessel exists at the Miami Beach Marina at present) will not be held in violation under the State's latest prohibition regarding gambling vessels and if their existing lease expires, terminates or is canceled, the City further agrees that no other gambling cruise ship may occupy any area within the lease area; and WHEREAS, the Marine Authority voted to recommend approval of the proposed amendment language subject to confirming that the existing sublease with Majesty, as referenced in the proposed amendment, is still validly in existence since the Marine Authority was under the impression that Majesty had declared bankruptcy and sold its assets by court order; and WHEREAS, the Marina's response is that the lease with Majesty Enterprises of Florida, llC is still in existence and it was assigned in June 2004 to MB Cruises, llC, a Delaware Limited Liability Company, in connection with MB Cruises acquisition of all the assets, including the vessel "Atlantic", and liabilities of Majesty Enterprises of Florida, llC.; and WHEREAS, the Marina has not been notified of any bankruptcy by Majesty and when the Marina consented to the assignment of lease, they did not release Majesty from any obligations under the lease, therefore, the Marina continues to be a creditor in the event of a filing of a bankruptcy action by Majesty; and WHEREAS, on February 2, 2005, the Administration presented the Mayor and City Commission/Chairman and RDA Board Resolutions recommending approval of the Modification to the Sovereignty Submerged land lease; and WHEREAS, the Mayor and City Commission/Chairman and RDA Board did not take formal action on adopting the Resolution, and referred the matter to the Finance and Citywide Projects Committee for a more detailed discussion of the options available to the City to possibly negotiate a more favorable arrangement; and WHEREAS, on April 27, 2005, the Finance and Citywide Projects Committee reviewed and considered the matter, after receiving input and comments from the Administration and City Attorney's (Agency General Counsel) Office, and concluded to recommend that the Modification to the Sovereignty Submerged land lease be forwarded to the Mayor and City Commission/Chairman and RDA Board for approval. NOW THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and Members of the Miami Beach Redevelopment Agency, authorize the Chairman and Secretary to execute the Modified Sovereignty Submerged Land Lease No. 130765469 by and among the City of Miami Beach, the Miami Beach Redevelopment Agency and the Trustees of the Internal Improvement Trust Fund of the State of Florida, for the Miami Beach Marina, substantially in accordance with the form attached. PASSED AND ADOPTED THIS 18th day of Mav, 2005. ... . Attest:. .~'~~ rwh ""'( SECRETARY ~/ '. ~ \. ..~ Robert Parcher David Dermer APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION: ~~ ENERALCOUNSEL~ JMG:TH:JD:rlr >- S" -0 S DATE F:\DDHP\$ALL\ASSET\MARINA\RDA SOVEREIGNTY SUBMERGED LAND LEASE RES.DOC CITY OF MIAMI BEACH MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY m Condensed Title: A Resolution authorizing the Chairman and Secretary to execute a modification to the Sovereignty Submerged Land Lease No. 130765469 among the City of Miami Beach, the Miami Beach Redevelopment Agency and the Trustees of the .Internallmprovement Trust Fund of the State of Florida for the Miami Beach Marina, pursuant to the State Department of Environmental Protection request to clarify the existing uses at the Miami Beach Public Marina. Issue: Shall the RDA execute a modification to the Sovereignty Submerged Land Lease No. 130765469? Item Summa IRecommendation: Adopt the Resolution and amend the submerged land lease. Adviso Board Recommendation: Marine Authority - January 11 , 2005 The Marine Authority voted to recommend approval of the proposed amendment language subject to confirming that the existing sublease with Majesty, as referenced in the proposed amendment, is still validly in existence since Majesty has declared bankruptcy and sold its assets by court order. Finance and Citywide Proiects Committee: April 27, 2005 The Committee recommended that the Modification to the Sovereignty Submerged Land Lease be forwarded to the Ma or and Cit Commission/Chairman and RDA Board for a roval. Financial Information: Finance Dept. Amount Source of Funds: D City Clerk's Office Legislative Tracking: I Tim Hemstreet F:\DDHP\$ALL\ASSEnMARINA\RDA Sovereignly Subrnerged Land Lease SUM.doc AGENDA ITEM DATE 2f:- ~/g-oj CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.rniarnibeachfl.gov MIAMI BEACH REDEVELOPMENT AGENCY MEMORANDUM From: Chairman and Member of the Board of the Miami Beach Redevelopment Agency Jorge M. Gonzalez ). y' Executive Director "fJ'-' U A RESOLUTION F THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE A MODIFICATION TO THE SOVEREIGNTY SUBMERGED LAND LEASE NO. 130765469 AMONG THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY AND THE TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA FOR THE MIAMI BEACH MARINA, PURSUANT TO THE REQUEST OF THE STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION TO CLARIFY THE EXISTING USES AT THE MIAMI BEACH MARINA Date: May 18, 2005 To: Subject: ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANAL YSIS In 1999, the State requested certain amendments to the existing State Submerged Land Lease for the submerged land immediately adjacent to the Miami Beach Marina, to reflect the actual uses at the Marina. These uses included at the time, the State had adopted a policy prohibiting any gambling vessel uses at or upon State submerged lands. The Miami Beach Marina, the City's subtenant in this Lease arrangement, had pre-existing contractual arrangements with respect to "Cruise to Nowhere" vessels. Over the past five (5) years the parties have been in discussions in an attempt to best address the State's request and at the same time not impairing any pre-existing contractual rights. As a result, the parties have agreed to the language reflected in the attached modified Sovereignty Submerged Lands Lease. The proposed amended language reflect DEP's agreement that the one existing gambling vessel uses (i.e. one sublease for a gambling vessel exists at the Miami Beach Marina at present) will not be held in violation under the State's latest prohibition regarding gambling vessels. If their existing Lease expires, terminates or is canceled, the City further agrees that no other gambling cruise ship may occupy any area within the Lease area. The Marina would not agree to language requested by the State restricting the assignability of Majesty Cruise's Lease due to an existing assignability clause in Majesty's current sublease Agreement. May 18, 2005 RDA - Memorandum MB Marina - Modified Sovereignty Submerged Land Lease Page 2 of 2 On January 11, 2005, the Administration presented the amendment to the Marine Authority. The Marine Authority voted to recommend approval of the proposed amendment language subject to confirming that the existing sublease with Majesty, as referenced in the proposed amendment, is still validly in existence since Majesty has declared bankruptcy and sold its assets by court order. These questions have been posed to the Marina. The Marina's response is that the lease with Majesty Enterprises of Florida, LLC is still in existence and it was assigned in June 2004 to MB Cruises, LLC, a Delaware Limited Liability Company, in connection with MB Cruises acquisition of all the assets, including the vessel "Atlantic", and liabilities of Majesty Enterprises of Florida, LLC. The Marina has not been notified of any bankruptcy by Majesty and when the Marina consented to the assignment of Lease, they did not release Majesty from any obligations under the lease, therefore, the Marina continues to be a creditor in the event of a filing of a bankruptcy action by Majesty. On February 2, 2005, the Administration presented the Mayor and City Commission/Chairman and RDA Board Resolutions recommending approval of the Modification to the Sovereignty Submerged Land Lease. The Mayor and City Commission/Chairman and RDA Board did not take formal action on adopting the Resolution, and referred the matter to the Finance and Citywide Projects Committee for a more detailed discussion of the options available to the City to possibly negotiate a more favorable arrangement. On April 27, 2005, the Finance and Citywide Projects Committee reviewed and considered the matter, after receiving input and comments from the Administration and City Attorney's (Agency General Counsel) Office, and concluded to recommend that the Sovereignty Submerged Land Lease, as modified, be forwarded to the Mayor and City Commission/Chairman and RDA Board for approval. The attached Resolution authorizing the Chairman and Secretary to execute the Sovereignty Submerged Land Lease, amended as described above, should be approved. JMG:TH:JD:rlr F:\DDHP\$ALL\ASSEl\MARINA\RDA Sovereignly Subrnerged Land Lease MEM.doc EXHIBIT "A" This Instrument Prepared By: Recurring Revenue Section Bureau of Public Land Administration 3900 Commonwealth Boulevard Mail Station No. 125 Tallahassee, Florida 32399 BOARD OF TRUSTEES OF TIIE INIERNAL IMPROVEMENT TRUST FUND OF TIIE STATE OF FLORIDA SOVEREIGNTY SUBMERGED LANDS LEASE No. PANo. THIS LEASE is hereby issued by the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida, hereinafter referred to as the Lessor. WITNESSETIf: That for and in consideration of payment of the annual lease fees hereinafter provided and the faithful and timely performance of and compliance with all terms and conditions stated herein, the Lessor does hereby lease to hereinafter referred to as the Lessee, the sovereign lands described as follows: A parcel of sovereign submerged land in Section Township _, Range ~ in , _ County, containing square feet, more or less, as is more particularly described and shown on Attachment A, dated TO HAVE THE USE OF the hereinabove described premises for a period of _ years from , the effective date of this lease. The terms and conditions on and for which this lease is granted are as follow: I. USE OF PROPERTY: The Lessee is hereby authorized operate exclusively a commercial docking facility with boatl ifts exclusively to be used for the mooring of recreational vessels and a cruise to nowhere vessel used in conjunction with an upland commercial marina facility, with fueling facilities, with a sewage pwnpout facility, and ~ liveaboards as defined in oaragraph 29, as shown and conditioned in Attachment A, and the Department of Environmental Protection, Environmental Resource Permit No. , dated . incorporated herein and made a part of this lease by reference. 2. LEASE FEES: The Lessee hereby agrees to pay to the Lessor an initial annual lease fee of $ and 25 percent surcharge, plus sales tax pursuant to Section 212.031, Florida Statutes, if applicable, within 30 days of receipt of this fully executed lease. The annual fee for the remaining years of the lease shall be adjusted pursuant to provisions of Section 18- 21.011, Florida Administrative Code. The Division of State Lands will notify the Lessee in writing of the amount and the due date of the annual payment. The lease fee shall be remitted annually to the Division of State Lands as the agent for the Lessor, beginning with the effective and due date of this lease, and each year thereafter until the term of this lease terminates or expires. 3. WET SLIP RENTAL CERTIFICATION/SUPPLEMENTAL PAYMENT: The Lessee shall provide upon request by the Lessor any and all information in a certified form needed to calculate the lease fee specified in paragraph two (2) above, including the total amount of the gross receipts derived from the rental of wet slips, if applicable. When six percent (6%) of the gross receipts derived from the rental of wet slips exceeds the prorated base fee or minimum fee established pursuant to section 18-21.011, Florida Administrative Code, for any lease year during the term of this lease, the Lessor shall send the Lessee a supplemental invoice for the difference in the amounts for that lease year. 4. LATE FEE ASSESSMENTS' The Lessee shall pay a late charge equal to interest at the rate of twelve percent (12%) per annum from the due date until paid on any lease fees due hereunder which are not paid within 30 days of their due dates. 5. EXAMINATION OF LESSEE'S RECORDS' For purposes of this lease, the Lessor is hereby specifically authorized and empowered to examine, for the tenn ofthis lease including any extensions thereto plus three (3) additional years, at all reasonable hours, the books, records, contracts, and other documents confinning and pertaining to the computation of annual lease payments as specified in paragraph two (2) above. 6. MAINTENANCE OF LESSEE'S RECORDS: The Lessee shall secure, maintain, and keep all records for the entire tenn of this lease, plus three (3) additional years. This period shall be extended for an additional two (2) years upon request for examination of all records and accounts for lease payment verification purposes by the Lessor. 7. AGREEMENT TO EXTENT OF USE: This lease is given to the Lessee to use or occupy the leased premises only for those activities specified herein and as conditioned by the Department of Environmental Protection, Environmental Resource Penn it. The Lessee shall not change or add to the approved use of the leased premises as defined herein (e.g., from commercial to multi-family residential, from temporary mooring to rental of wets lips, from rental of wets lips to contractual agreement with third party for docking of cruise ships, from rental of recreational pleasure craft to rental or temporary mooring of charter/tour boats, from loadingloftloading commercial to rental of wetslips, etc.), shall not change activities in any manner that may have an environmental impact that was not considered in the original authorization or regulatory pennit, or shall not change the type of use of the riparian uplands without first obtaining a regulatory penn it/modified pennit, if applicable, and the Lessor's written authorization in the fonn ofa modified lease, the payment of additional fees, if applicable, and, if applicable, the removal of any structures which may no longer qualifY for authorization under the modified lease. 8. PROPERTY RIGHTS' The Lessee shall make no claim of title or interest to said lands hereinbefore described by reason of the occupancy or use thereof, and all title and interest to said land hereinbefore described is vested in the Lessor. The Lessee is prohibited from including, or making any claim that purports to include, said lands described or the Lessee's leasehold interest in said lands into any fonn of private ownership, including but not limited to any fonn of condominium or cooperative ownership. The Lessee is further prohibited from making any claim, including any advertisement, that said land, or the use thereof, may be purchased, sold, or re-sold. 9. INTEREST IN RIPARIAN UPLAND PROPERTY: During the tenn of this lease, the Lessee shall maintain a leasehold or fee simple title interest in the riparian upland property and if such interest is tenninated, the lease may be tenninated at the option of the Lessor. Prior to sale and/or tennination of the Lessee's leasehold or fee simple title interest in the upland property, Lessee shall infonn any potential buyer or transferee of the Lessee's upland property interest of the existence of this lease and all its tenns and conditions and shall complete and execute any documents required by the Lessor to effect an assignment of this lease, if consented to by the Lessor. Failure to do so will not relieve the Lessee from responsibility for full compliance with the tenns and conditions of this lease which include, but are not limited to, payment of all fees and/or penalty assessments incurred prior to such act. 10. ASSIGNMENT OF LEASE: This lease shall not be assigned or otherwise transferred without prior written consent of the Lessor or its duly authorized agent. Such assignment or other transfer shall be subject to the tenns, conditions and provisions of management standards and applicable laws, rules and regulations in effect at that time. Any assignment or other transfer without prior written consent of the Lessor shall be null and void and without legal effect. Page --L of _ Pages Sovereignty Submerged Lands Lease No. II. INDEMNIFICA TIONIINVESTIGA TION OF ALL CLAIMS' The Lessee shall investigate all claims of every nature arising out of this lease at its expense, and shall indemnify, defend and save and hold harmless the Lessor and the State of Florida from all claims, actions, lawsuits and demands arising out of this lease. 12. YlilillIi Lessee waives venue as to any litigation arising from matters relating to this lease and any such litigation between Lessor and Lessee shall be initiated and maintained only in Leon County, Florida. 13. NOTICESlCOMPLIANCFffERMINATION: The Lessee binds itself, its successors and assigns, to abide by the provisions and conditions herein set forth, and said provisions and conditions shall be deemed covenants of the Lessee, it successors and assigns. In the event the Lessee fails or refuses to comply with the provisions and conditions herein set forth, or in the event the Lessee violates any ofthe provisions and conditions herein, or fails or refuses to comply with the provisions and conditions herein set forth within 20 days of receipt of the Lessor's notice to correct, this lease may be tenninated by the Lessor upon thirty (30) days written notice to Lessee. If canceled, all of the above-described parcel ofland shall revert to the Lessor. All costs and attorneys' fees incurred by the Lessor to enforce the provisions of this lease shall be paid by the Lessee. All notices required to be given to the Lessee by this lease or applicable law or administrative rules shall be sufficient if sent by U.S. Mail to the following address: The Lessee shall notify the Lessor by certified mail ofany change to this address at least ten (10) days before the change is effective. 14. TAXES AND ASSESSMENTS' The Lessee shall assume all responsibility for liabilities that accrue to the subject property or to the improvements thereon, including any and all drainage or special assessments or taxes of every kind and description which are now or may be hereafter lawfully assessed and levied against the subject property during the effective period of this lease. 15. NUISANCES OR ILLEGAL OPERATIONS: The Lessee shall not pennit the leased premises or any part thereof to be used or occupied for any purpose or business other than herein specified unless such proposed use and occupancy are consented to by the Lessor and the lease is modified accordingly, nor shall Lessee knowingly pennit or suffer any nuisances or illegal operations of any kind on the leased premises. 16. MAINTENANCE OF FACILITY IRIGHf TO INSPECT The Lessee shall maintain the leased premises in good condition, keeping the structures and equipment located thereon in a good state of repair in the interests of public health, safety and welfare. No dock or pier shall be constructed in any manner that would cause harm to wildlife. The leased premises shall be subject to inspection by the Lessor or its designated agent at any reasonable time. 17. NON-DISCRIMINATION' The Lessee shall not discriminate against any individual because of that individual's race, color, religion, sex, national origin, age, handicap, or marital status with respect to any activity occurring within the area subject to this lease or upon lands adjacent to and used as an adjunct ofthe leased area. During the lease tenn, the Lessee shall post and maintain the placard furnished to the Lessee by the Lessor in a prominent and visible location on the leased premises or adjacent business office of the Lessee. It shall be the responsibility of the Lessee to post the placard in a manner which will provide protection from the elements, and, in the event that said placard becomes illegible at any time during the tenn of this lease (including any extensions thereot), to notify the Lessor in writing, so that a replacement may be provided. 18. ENFORCEMENT OF PROVISIONS: No failure, or successive failures, on the part of the Lessor to enforce any provision, nor any waiver or successive waivers on its part of any provision herein, shall operate as a discharge thereof or render the same inoperative or impair the right of the Lessor to enforce the same upon any renewal thereof or in the event of subsequent breach or breaches. 19. PERMISSION GRANTED: Upon expiration or cancellation of this lease all pennission granted hereunder shall cease and tenninate. Page -L of _ Pages Sovereignty Submerged Lands Lease No. _ 20. RENEWAL PROVISIONS' Renewal of this lease shall be at the sole option ofthe Lessor. Such renewal shall be subject to the tenns, conditions and provisions of management standards and applicable laws, rules and regulations in effect at that time. In the event that Lessee is in full compliance with the terms of this lease, the Lessee may apply in writing for a renewal. Such application for renewal must be received by Lessor no sooner than 120 days and no later than 30 days prior to the expiration date of the original or current term hereof The term of any renewal granted by the Lessor shall commence on the last day of the previous lease term. If the Lessee fails to timely apply for a renewal, or in the event the Lessor does not grant a renewal, the Lessee shall vacate the leased premises and remove all structures and equipment occupying and erected thereon at its expense. The obligation to remove all structures authorized herein upon termination of this lease shall constitute an affirmative covenant upon the riparian upland property more specifically described in Attachment _, which shall run with the title to said riparian upland property, and shall be binding upon Lessee and Lessee's successors in title or successors in interest. 21. REMOVAL OF STRUCTURESlADMINISTRA TIVE FINES: If the Lessee does not remove said structures and equipment occupying and erected upon the leased premises after expiration or cancellation of this lease, such structures and equipment will be deemed forfeited to the Lessor, and the Lessor may authorize removal and may sell such forfeited structures and equipment after ten (10) days written notice by certified mail addressed to the Lessee at the address specified in Paragraph 13 or at such address on record as provided to the Lessor by the Lessee. However, such remedy shall be in addition to all other remedies available to the Lessor under applicable laws, rules and regulations including the right to compel removal of all structures and the right to impose administrative fines. 22. REMOVAL COSTSILIEN ON RIPARIAN UPLAND PROPERTY: Any costs incurred by the Lessor in removal of any structures and equipment constructed or maintained on state lands shall be paid by Lessee and any unpaid costs and expenses shall constitute a lien upon the interest of the Lessee in its riparian upland property enforceable in summary proceedings as provided by Law. 23. RECORDATION OF LEASE' The Lessee, at its own expense, shall record this fully executed lease in its entirety in the public records of the county within which the lease site is located within fourteen (14) days after receipt, and shall provide to the Lessor within ten (10) days following the recordation a copy of the recorded lease in its entirety which contains the O.R. Book and pages at which the lease is recorded. 24. RIPARIAN RIGHTSIFINAL ADJUDICATION' In the event that any part of any structure authorized hereunder is determined by a final adjudication issued by a court of competent jurisdiction to encroach on or interfere with adjacent riparian rights, Lessee agrees to either obtain written consent for the offending structure from the affected riparian owner or to remove the interference or encroachment within 60 days from the date of the adjudication. Failure to comply with this paragraph shall constitute a material breach of this lease agreement and shall be grounds for immediate termination of this lease agreement at the option of the Lessor. 25. AMENDMENTS/MODIFICATIONS' This lease is the entire and only agreement between the parties. Its provisions are not severable. Any wnendment or modification to this lease must be in writing, must be accepted, acknowledged and executed by the Lessee and Lessor, and must comply with the rules and statutes in existence at the time of the execution of the modification or wnendment. Notwithstanding the provisions of this paragraph, if mooring is authorized by this lease, the Lessee may install boatlifts within the leased premises without formal modification of the lease provided that (a) the Lessee obtains any state or local regulatory permit that may be required; and (b) the location or size of the lift does not increase the mooring capacity of the facility. Page...i.. of _ Pages Sovereignty Submerged Lands Lease No. _ 26. ADVERTISEMENT/SIGNSINON-W A TER DEPENDENT ACTIVITIES/ADDITIONAL ACTlVITIESIMlNOR STRUCTURAL REPAIRS' No permanent or temporary signs directed to the boating public advertising the sale of alcoholic beverages shall be erected or placed within the leased area. No restaurant or dining activities are to occur within the leased area. The Lessee shall ensure that no pennanent, temporary or floating structures, fences, docks, pilings or any structures whose use is not water-dependent shall be erected or conducted over sovereignty submerged lands without prior written consent from the Lessor. No additional structures and/or activities including dredging, relocation/realignment or major repairs or renovations to authorized structures, shall be erected or conducted on or over sovereignty, submerged lands without prior written consent from the Lessor. Unless specifically authorized in writing by the Lessor, such activities or structures shall be considered unauthorized and a violation of Chapter 253, Florida Statutes, and shall subject the Lessee to administrative fines under Chapter 18-14, Florida Administrative Code. This condition does not apply to minor structural repairs required to maintain the authorized structures in a good state of repair in the interests of public health, safety or welfare; provided, however, that such activities shall not exceed the activities authorized by this agreement. 27. ACOE AUTHORIZATION' Prior to commencement of construction and/or activities authorized herein, the Lessee shall obtain the U.S. Anny Corps of Engineers (ACOE) pennit if it is required by the ACOE. Any modifications to the construction and/or activities authorized herein that may be required by the ACOE shall require consideration by and the prior written approval of the Lessor prior to the commencement of construction and/or any activities on sovereign, submerged lands. 28. COMPLIANCE WITH FLORIDA LAWS: On or in conjunction with the use of the leased premises, the Lessee shall at all times comply with all Florida Statutes and all administrative rules promulgated thereunder. Any unlawful activity which occurs on the leased premises or in conjunction with the use of the leased premises shall be grounds for the tennination of this lease by the Lessor. 29. LIVEABOARDS: The tenn "liveaboard" is defined as a vessel docked at the facility and inhabited by a person or persons for any five(5) consecutive days or a total often(lO) days within a thirty(30) day period. Ifliveaboards are authorized by paragraph 0ne(1) of this lease, in no event shall such "liveaboard" status exceed six(6) months within any twelve(12) month period, nor shall any such vessel constitute a legal or primary residence. 30. GAMBLING VESSELS: During the tenn of this lease and any renewals, extensions, modifications or assignments thereof, exceot for the sublease described below. the Lessee shall prohibit the operation of or entry onto the leased premises of gambling cruise ships, or vessels that are used principally for the purpose of gambling, when these vessels are engaged in "cruises to nowhere," where the ships leave and return to the state of Florida without an intervening stop within another state or foreign country or waters within the jurisdiction of another state or foreign country, and any watercraft used to carry passengers to and from such gambling cruise ships. At present. there is a sublease between Maiestv Enterorises of Florida LLC and Miami Beach Marina Associates Ltd. dated January 31 2002 which pennits the sublessee to operate a sinsde lUImbling cruise ship within the lease area that moors to the northwestern or waterward face of the northern breakwater. This sublessee is authorized to continue to operate within the lease area as specified in their sublease. however if Maiestv Enterorises of Florida. LLC's sublease exoires or is cancelled for anv reason. the City shall agree to the restriction that no other SlImbling cruise ship mav occupv anv area within the lease area without the specific and additional approval of the Lessor or their agents. unless either the laws of the state have been changed to pennit said uses or it is no longer the policv of the Lessor to prohibit or limit such uses. 31. SPECIAL LEASE CONDITION: Page.2.- of _ Pages Sovereignty Submerged Lands Lease No. _