HomeMy WebLinkAbout527-2006 RDA Reso Inc.RESOLUTION NO. 527-2006
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA) APPROVING THE ONE (1)
YEAR RENEWAL OPTION TO THE MANAGEMENT AND LEASING
AGREEMENT WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), IN ASSOCIATION WITH FELENSTEIN KONIVER
STERN REALTY GROUP (FKS), FOR THE MANAGEMENT AND LEASING
OF THE RETAIL COMPONENT OF THE ANCHOR SHOPS AND PARKING
GARAGE, IN ACCORDANCE WITH SECTION 9.1 OF THE AGREEMENT;
SAID RENEWAL TERM COMMENCING ON MAY 1, 2006, AND ENDING ON
APRIL 30, 2007.
WHEREAS, on May 30, 2003, the Chairman and Members of the Miami Beach
Redevelopment Agency (RDA) approved a Management and Leasing Agreement with the
Miami Beach Development Corporation (MBCDC), in association with Felenstein Koniver
Stern Realty Group (FKS), as the successful proposer pursuant to RFP No. 05-02/03, for
the management and leasing of the retail component of the Anchor Ship, and Parking
Garage Agreement (the Agreement); and
WHEREAS, the initial term of the Agreement was for a period of three (3) years,
commencing on May 1, 2003 and expiring on April 30, 2006; and
WHEREAS, the Agreement provides for a one (1) year renewal option, which may
be exercised upon expiration of the initial term, at the sole discretion of the RDA; and
WHEREAS, as the incumbent management firm at the Anchor Shops, MBCDC not
only has a solid relation with its tenants, but has also been instrumental in various initiatives
aimed at promoting the facility, as well improving the area's image; and
WHEREAS, exercising the renewal provision shall ensure that the MBCDC will
continue in its role to maintain the Anchor Shops in a manner consistent with a first class
retail establishment.
NOW, THEREFORE, BE IT RESOLVED BY THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and Members
hereby approve the one (1) year renewal option to the Management and Leasing Agreement
with the Miami Beach Community Development Corporation (MBCDC), in association with
Felenstein Koniver Stern Realty Group (FKS), for the management and leasing of the retail
component of the Anchor Shops and Parking Garage, in accordance with Section 9.1 of the
Agreement; said renewal term commencing on May 1, 2006, and expiring on April 30, 2007.
PASSED AND ADOPTED this the 8th day of r~¢ 2006.
ATTEST;:. . ' rid Dermer APPROVED AS TO
SECRETARY Robert Parcher
T:kAGEN DA~2006%ma ~806\RDA\MBCDC_Res.doc
FORM & LANGUAGE
& FOR EXECUTION
Condensed Title:
REDEVELOPMENT AGENCY ITEM SUMMARY
A Resolution approving the one (1) year renewal option to the Management and Leasing Agreement with
Miami Beach Community Development Corporation (MBCDC), in association with Felenstein, Konniver
Stern Realty Group (FKS), for the management and leasing of the retail component of the Anchor Shops
and Parking Garage in accordance with Section 9.1 of the Agreement.
Key Intended Outcome Supported:
IEnsure well maintained facilities and increase level of satisfaction with City services
Issue:
IShall the RDA approve a one (1) year renewal of the Management Agreement with MBCDC and
FKS?
Item Summary/Recommendation'
On May 30, 2003, the RDA Board approved a Management and Leasing Agreement with the Miami
Beach Development Corporation (MBCDC), in association with Felenstein, Koniver, Stern Realty Group
(FKS), as the successful proposer pursuant to RFP No. 05-02/03, for the management and leasing of the
retail component of the Anchor Shops and Parking Garage.
The initial term of the Agreement was for a period of three (3) years, commencing on May 1,2003 and
expiring on April 30, 2006. The Agreement provides for a one (1) year renewal option, which may be
exercised upon expiration of the initial term, at the sole discretion of the RDA.
As the incumbent management firm at the Anchor Shops, MBCDC not only has a solid relation with its
tenants, but has also been instrumental in various initiatives aimed at promoting the facility as well
improving the area's image. Exercising the renewal provision shall ensure that the Property Manager will
continue in its role to maintain the Anchor Shops in a manner consistent with a first class retail
establishment. As such, the Administration recommends exercising the one (1) year renewal option
provided for in the Agreement, commencing on May 1,2006 and expiring on April 30, 2007
Advisory Board Recommendation:
I N/A
Financial Information:
Funds: :: 1' $50,000 Funds are available from Anchor
Shops Account No. 465-1995-
000349
,,
i
,so,ooo
Financial Impact Summary: N/^
City Clerk's Office Legislative Tracking'
IKent O. Bonde
Sign-Offs:
T:V~GENDA~.006\mar0806\RDA\M BCDC-Summ ~c
MiAM!BEACH
AGE"DA ITEM ~1~
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO:
Chairman and Members of the Board
FROM:
DATE:
SUBJECT:
MarchEXecutive8, 2006Director Jorge M. Gonzalez //~ ~
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROVING THE ONE (1) YEAR
RENEWAL OPTION TO THE MANAGEMENT AND LEASING AGREEMENT
WITH THE MIAMI BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), IN ASSOCIATION WITH FELENSTEIN KONIVER STERN
REALTY GROUP (FKS), FOR THE MANAGEMENT AND LEASING OF THE
RETAIL COMPONENT OF THE ANCHOR SHOPS AND PARKING GARAGE,
IN ACCORDANCE WITH SECTION 9,1 OF THE AGREEMENT,
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On May 30, 2003, the RDA Board approved a Management and Leasing Agreement with
the Miami Beach Development Corporation (MBCDC), in association with Felenstein
Koniver Stern Realty Group (FKS), as the successful proposer pursuant to RFP No. 05-
02/03, for the management and leasing of the retail component of the Anchor Shops and
Parking Garage.
The initial term of the Agreement was for a period of three (3) years, commencing on May
1, 2003 and expiring o.n April 30, 2006. The Agreement provides for a one (1) year renewal
option, which may be exercised upon expiration of the initial term, at the sole discretion of
the RDA.
Pursuant to the Agreement, MBCDC receives a fee equivalent to four (4) percent of annual
lease revenues, which ba. sed upon last year's operating results, totaled approximately
$26,000 in FY 04/05. The fee partially funds three management/administrative positions
and one maintenance position.
Direct costs associated with the upkeep and maintenance of the Anchor Shops are paid on
a reimbursable basis. These costs include, but are not limited to, operating supplies
includihg cleaning materials, light bulbs and other consumable and expendable items; minor
(non-structural) repair and maintenance costs; accounting and professional service
contracts; and, other costs and expenses, pre-approved by the RDA, necessary for the
operation of the Facility. Pursuant to the attached operating statement for FY 04/05 for the
Anchor Shops, actual reimbursable expenses totaled $23,200 for the year. It should be
Redevelopment Agency Memorandum
Anchor Shops Management & Leasing Agreement Renewal Option
March 8, 2006
Page 2 of 3
noted that despite additional costs associated with hurricane preparedness, reimbursable
expenses came in approximately $5,600 below budget for the same period. As such, the
combined fees and reimbursable expenses for FY 06/07 are not anticipated to exceed
$50,000.
It should be noted that Agreement also provides for a leasing commission, which is
competitive by industry standards. However, since the Anchor Shops are 100% leased, with
the shortest remaining lease term, exceeding the one-year renewal term of the Agreement,
the RDA does not anticipate having to pay leasing commissions at this time. To the extent
that any of the retail spaces become vacant during the remaining term of the Management
Agreement, the RDA shall pay a leasing commission based on the following:
An amount equal to the aggregate of the following percentages of the minimum rent paid by
the tenant to the RDA during the following years of the term of the lease:
Six (6%) percent of the Minimum Rent for years one (1) through five (5) of the term of the
lease; and
Four (4%) percent of the Minimum Rent for years six (6) through ten (10) of the term of the
lease; and
Three (3%) percent of the Minimum Rent for the remaining years of the term of the lease.
The term "Minimum Rent" excludes additional rent or other charges of any type or nature
whatsoever paid or payable by the tenant under the Lease, including amounts payable on
account of increases in real estate taxes, operating expenses, any escalations, utility
payments or other charges for any services. No leasing commissions are paid for renewals,
relocations, expansions, assignments or transfers of lease.
As the Property Manager for the Anchor Shops, MBCDC's scope of services includes, but is
not limited to:
Procuring and negotiating leases for available space as well as for
space that becomes available upon expiration and/or termination of
exiting leases;
· Collecting and remitting lease revenues;
Providing a means of communication for retail tenants to address
and/or resolve matters pertaining to their respective leases, such as,
but not limited to, maintenance or repair concerns;
· Providing timely response to tenant issues and concerns;
Conducting daily on-site inspections to ensure that tenant spaces and
common area Spaces are maintained to a standard consistent with a
first class retail center;
Redevelopment Agency Memorandum
Anchor Shops Management & Leasing Agreement Renewal Option
March 8, 2006
Page 3 of 3
· Coordinating with the City's Property Management Division on
maintenance, issues affecting the facility.
Communicating and coordinating with tenants to secure their
respective spaces, in the event of a hurricane and/or any other
citywide emergency;
· Coordinating and facilitating any tenant improvements involving new
and/or existing I'eases;
· Coordinating marketing and advertising efforts at tenant's expense;
Maintaining a system of accounting, bookkeeping and reporting that
will accurately reflect all income received and disbursements made in
connection with the operation and maintenance of the Anchor Shops;
Affecting a good neighbor policy through involvement and
coordination with local area residents, businesses and business
organizations.
The Property Manager's primary role shall continue to maintain the Anchor Shops in a
manner consistent with a first class retail establishment. Daily on-site visits will serve to
ensure that all common areas and sidewalks are kept clean and free of any unsightly
conditions such as graffiti. The Property Manager will coordinate with the City's Parking
Department and the City's property Management Division to identify and track items in need
of replacement and/or repair. Since the tenants are responsible for maintaining their own
space, the Property Manager will enforce that this is done as well as provide assistance, as
needed, to facilitate and/or expedite repairs. Additionally, any space which becomes vacant
will fall under the responsibility of the Property Manager to maintain and show to prospective
new tenants.
As the incumbent management firm at the Anchor Shops, MBCDC not only has a solid
relation with its tenants, but has also been instrumental in various initiatives aimed at
promoting the facility a.~ well improving area's image. As such, the Administration
recommends exercising the one (1) year renewal option provided for in the Agreement,
commencing on May 1, 2006 and expiring on April 30, 2007.
JMGfTH/KOB
Attachment
T:~GENDA~006\mar0806\Regular\MBCDC-MEMO-RDA.doc