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HomeMy WebLinkAbout2006-26148 ResoRESOLUTION NO. 2006-26148 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING ON APRIL 11, 2006, TO HEAR PUBLIC COMMENT REGARDING A LEASE AGREEMENT WITH MANYPREY, INC., FOR THE LEASE OF APPROXIMATELY 2080 SQUARE FEET OF CITY-OWNED PROPERTY LOCATED AT 22 WASHINGTON AVENUE, MIAMI BEACH, FLORIDA; FOR THE PURPOSE OF AN OUTDOOR CAFI5 ASSOCIATED WITH A RESTAURANT OPERATION LOCATED AT 816 COMMERCE STREET, WHICH IS DIRECTLY ADJACENT TO AND WEST OF THE SUBJECT CITY PROPERTY; SAID LEASE HAVING AN INITIAL TERM OF FIVE YEARS, WITH AN OPTION TO RENEW FOR FOUR YEARS AND 364 DAYS, AT THE CITY'S DISCRETION; FURTHER TO CONSIDER WAIVER,-BY 5/7THS VOTE, OF THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS; AS REQUIRED BY SECTION 82-39 OF THE MIAMI BEACH CITY CODE WHEREAS, the City and Manyprey, Inc. have negotiated and are proposing to enter into a five (5) year lease, with an option to renew for an additional four (4) years and three hundred sixty four (364) days, at the City's sole discretion, for the use of approximately 2080 square feet of vacant City-owned property located at 22 Washington Avenue (the Property) for an outdoor cafb associated with a restaurant operation located at 816 Commerce Street, which is directly adjacent to and west of the subject City property; and WHEREAS, Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, requires a public bidding process, a Planning Department analysis, and an independent appraisal to determine the value of the leasehold interest; as well as a public headng to obtain citizen input; and WHEREAS, Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements, by 5/7ths vote of the Mayor and City Commission, for leases of City land, upon a finding by the Mayor and City Commission that the public interest would be served by waiving such conditions. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission of the City of Miami Beach, Florida, hereby set a public hearing on April 11, 2006, to hear public comment regarding a Lease Agreement for the lease of approximately 2080 square feet of the City-owned property located at 22 Washington Avenue, Miami Beach, Florida; for the purpose of an outdoor cafb associated with a restaurant operation located at 816 Commerce Street, which is directly adjacent to and west of the subject City property; said Lease having an initial term of five years, with an option to renew for four years and 364 days, at the City's discretion; further to consider waiver, by 5/7ths vote, of the competitive bidding and appraisal ~nts, as required by Section 82-39 of the Miami Beach City Code. PASSED and ADOPTED this ATTEST: req 8th MAYOR ~ David Dermer CITY CLERK Robert Percher JMG\RCM\JD\rlr APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION F:\DDHP\$ALLV~SSET~2 WASHINGTON\Manyprey. PHearing.RES.doc Condensed Title: COMMISSION ITEM SUMMARY IResolution setting a public hearing for April 11, 2006. Key Intended Outcome Supported: IIncrease resident satisfaction with availability of commercial service options. Issue: IShould the Mayor and City Commission set the Public Hearing? Item Summary/Recommendation: The City and Manyprey, Inc. have negotiated and are proposing to enter into a 5 year lease, with an option to renew for an additional 4 years and 364 days, for the use of approximately 2080 square feet of vacant City-owned property, located at 22 Washington Avenue, for an outdoor caf~ associated with a restaurant operation located at 816 Commerce Street, which is directly adjacent to and west of the subject property. Salient terms and conditions outlined in attached Commission Memorandum. The subject property is the remaining portion of a lot that had been previously acquired by the City for the expansion of a portion of Washington Avenue (between Commerce Street and South Pointe Drive) which has already been completed, and the subject parcel does not readily lend itself for public use at this time. Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, provides that the lease of any City-owned property, for a period of more than one year, requires a public hearing. The Administration recommends that the Mayor and City Commission set the public hearing for April 11, 2006, Advisory Board Recommendation: I N/A Financial Information: OBPI Financial Impact Summary: · City Clerk's Office Legislative Tracking: IRobert Middaugh / Jose Damien n-Offs: JD RCM F:\D DH P\$ALL~&SS E'I'~.2 WASHINGTON\Manyprey. PHearing. SUM.doc MI.AMI BE.ACH AGENDA ITEU DATE cT q MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager ~~-~'"' DATE: March 8, 2006 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING ON APRIL 11,2006, TO HEAR PUBLIC COMMENT REGARDING A LEASE AGREEMENT WITH THE MANYPREY, INC., FOR THE LEASE OF APPROXIMATELY 2080 SQUARE FEET OF CITY-OWNED PROPERTY LOCATED AT 22 WASHINGTON AVENUE, MIAMI BEACH, FLORIDA;SAID LEASE HAVING AN INITIAL TERM OF FIVE YEARS, WITH AN OPTION TO RENEW FOR FOUR YEARS AND 364 DAYS, AT THE CITY'S DISCRETION; FURTHER TO CONSIDER WAIVER, BY 5/TTHS VOTE, OF THE COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS; AS REQUIRED BY SECTION 82-39 OF THE MIAMI BEACH CITY CODE ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The City of Miami Beach (City) and Manyprey, Inc. have negotiated and are proposing to enter into a five (5) year lease agreement, with an option to renew for an additional four (4) years and three hundred sixty four (364) days, with the renewal option being at the City's sole discretion, for the use of approximately 2080 square feet of vacant City-owned property located at 22 Washington Avenue (the Property) as an outdoor caf~ associated with a restaurant operation located at 816 Commerce Street, which is directly adjacent to and west of the subject property. The subject Property (see attached site plan) is the remaining portion of a lot that had been previously acquired by the City for the expansion of a portion of Washington Avenue (between Commerce Street and South Pointe Drive) which has already been completed. The Administration deems that the Property does not readily lend itself for public use at this time. The proposed Lease Agreement, as being negotiated, will include terms and conditions substantially in accordance with the salient points outlined below: · FEE: During the initial five year term, Manyprey, Inc. has agreed to compensate the City as follows: · 1st and 2nd* Year: The greater of a minimum guaranteed amount of $52,000 (approximately equal to $25.00 per square foot) or five percent (5%) of its annual gross receipts.. · 3rd and 4th* Year: The greater of a minimum guaranteed amount of $62,400 (approximately equal to $30.00 per square foot) or five percent (5%) of its annual gross receipts. 5th Year: The greater of a minimum guaranteed amount of $83,200 (approximately equal to $40.00 per square foot) or five percent (5%) of its annual gross receipts. *The Minimum Guarantee for the 2~d Year and 4th Year shall be increased by three (3%) percent, or the Consumer Price Index, whichever is greater. A yearly "true-up" to reconcile the Minimum Guaranteed amounts with the actual "gross receipts" will be performed by a Certified Public Accountant (at Manyprey's sole cost and expense) at the end of each contract year and any amounts due above the Minimum Guaranteed will be due and payable to the City within 30 days of the end of each contract year. DEVELOPMENT: Manyprey, at its sole cost and expense, will develop the Property into the aforementioned outdoor caf(~, and demolish and remove any improvements at Lease termination (at the City's discretion). ENTERTAINMENT: No entertainment or music will be permitted except for Iow-level ambient music (appropriately shielded from the public-rights-of-way) and as further may be restricted by applicable law. PERFORMANCE BOND: Manyprey agrees to provide a performance bond, or other similar instrument (e.g. irrevocable letter of credit, surety bond, etc.) acceptable to the City, in an amount equal to the estimated costs to demolish and remove any improvements constructed on the property at the termination and/or expiration of the lease term. Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property, provides that the lease of any City-owned property, including option periods, requires the following: 1) 2) 3) 4) a public bidding process; Planning Department analysis; an independent appraisal to determine the value of the leasehold interest; and a public hearing to obtain citizen input. Section 82-39 further provides for the waiver of the competitive bidding and appraisal requirements, by 5/7ths vote of the Mayor and City Commission, upon a finding by the Mayor and City Commission that the public interest would be served by waiving such conditions. There is also a requirement that there be a minimum fifteen (15) day advertised notice advising of the public hearing. In order to enable the Mayor and City Commission to hold the public hearing in a timely manner, the Administration is recommending that the date for said public hearing be set at this time. Based on the foregoing, the Administration recommends that the Mayor and City Commission set the public hearing for April 11,2006, to consider the proposed Lease and proposed waiver of the competitive bidding and appraisal requirements. JMG\RCM\JD\rlr F:\DDH P\$ALL~,SSET~2 WASHINGTON\Manyprey. PHearing2.MEM.doc SUBJECT PROPERTY