350-2000 RDA
RESOLUTION NO.
350-2000
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, REAPPROPRIATING $126,838.90
FROM NON-TAX INCREMENT REDEVELOPMENT AGENCY FUNDS
FROM CITY CENTER; SAID AMOUNT REPRESENTING THE BALANCE
OF BROKERAGE COMMISSIONS TO BE PAID BY THE
REDEVELOPMENT AGENCY, AS SUCCESSOR IN INTEREST TO MB
REDEVELOPMENT, INC., UNDER THE RETAIL SPACE MASTER LEASE
AGREEMENT, DATED SEPTEMBER 26, 1996; AND FURTHER
AUTHORIZING THE PAYMENT OF $74,871.30 IN BROKERAGE
COMMISSIONS TO COMREAL OF MIAMI, INC., FOR LEASING OF
RETAIL SPACE IN THE ANCHOR SHOPS TO CADIAC, INC., D/B/A
P ARADIZZO/ BIKER'S IMAGE.
WHEREAS, during MB Redevelopment Inc.'s (MBR!) term as Master Tenant in the
Anchor Shops, MBRI relied upon outside brokers to deliver three of the five existing leases; and
WHEREAS, pursuant Section 3.2(d) of the Retail Space Master Lease Agreement, the
Redevelopment Agency (RDA) is required to reimburse the Master Tenant for payment of any and
all reasonable costs for subtenant improvements, leasing commissions and other reasonable
customary out-of-pocket expenses in connection with subleases; and,
WHEREAS, on July 21,1999, the RDA appropriated $261,504 from non-tax increment
RDA funds from City Center, to reimburse the Master Tenant for commission payments it had
incurred, as well as for anticipated future payments based upon the brokerage agreements in place
at the time; and
WHEREAS, from this appropriation, MBR! has been reimbursed a total of $134,665,
leaving a balance of $126,839; and
WHEREAS, with the termination of the Master Lease Agreement on March 20,2000, the
RDA is now directly responsible for paying outstanding and future brokerage fees which come due;
and
WHEREAS, brokerage fees are currently due to ComReal of Miami, Inc., in the amount
of $74,871, for the leasing of retail space in the Anchor Shops to Cadiac, Inc., d/b/a
Paradizzo/Biker's Image; and
WHEREAS, remaining brokerage fee obligations include $44,410 due to Mayer
Development Group, in connection with the leasing of space to Abkey Companies d/b/a
Fuddrucker's, in the amount of $66,615, and a contingency amount for vacant retail space under
negotiation.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
Members of the RDA authorize the reappropriation of$126,838.90 from non-tax increment RDA
funds from City Center; said amount representing the balance of brokerage commissions to be paid
by the RDA, as successor in interest to MB Redevelopment, Inc., under the Retail Space Master
Lease Agreement, dated September 26,1996 and further authorizing the payment of $74,871.30 in
brokerage commissions to Comreal of Miami, Inc., for the leasing of retail space in the Anchor
Shops to Cadiac, Inc., d/b/a Paradizzo/Biker's Image.
PASSED AND ADOPTED this 10th day of May ,2000.
m
ATTEST:
CHAIRMAN
16k{~ P ~M~~
SECRETARY
.,
T:\Agenda\2000\may I 0200\RDA \brokerage.res
AUpb ~ '.' .."..
r 1\L;\!l;~i ..:~ 1'0
FORM & LANGUAGE
& FOR EXECUTION
(Uf ~/j-;
Red 10 ment Agency
Gene,.,,' C:':!1',sl"1
5~ I (1Z.1
Dote
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
May 10,2000
TO:
FROM:
SUBJECT:
REDEVELOPMENT AGENCY MEMORANDUM NO. 00- ~1-
Chairman and Members of the
Miami Beach Redevelopment Agency
Lawrence A. Levy ~
Executive Director
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY REAPPROPRIATING $126,838.90
FROM NON-TAX INCREMENT REDEVELOPMENT AGENCY FUNDS
FROM CITY CENTER; SAID AMOUNT REPRESENTING THE BALANCE
OF BROKERAGE COMMISSIONS TO BE P AID BY THE
REDEVELOPMENT AGENCY, AS SUCCESSOR IN INTEREST TO MB
REDEVELOPMENT, INC., UNDER THE RETAIL SPACE MASTER LEASE
AGREEMENT, DATED SEPTEMBER 26, 1996; AND FURTHER
AUTHORIZING THE PAYMENT OF $74,871.30 IN BROKERAGE
COMMISSIONS TO COMREAL OF MIAMI, INC., FOR LEASING OF
RETAIL SPACE IN THE ANCHOR SHOPS TO CADIAC, INC., D/B/A
P ARADIZZO/ BIKER'S IMAGE.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
Analysis
During MB Redevelopment Inc.'s (MBRI) term as Master Tenant in the Anchor Shops, MBRI
relied upon outside brokers to deliver three of the five existing leases. Under the Master Lease
Agreement, the Redevelopment Agency (RDA) was responsible for reimbursing MBRI for paying
brokerage fees/commissions. At the time the Master Lease Agreement was executed however,
funding was not budgeted for payment of commissions. On July 21, 1999, The RDA Board
appropriated $261,504 from non-tax increment RDA funds from City Center, to reimburse MBRI
for commission payments it had incurred as well as for anticipated future payments based upon the
brokerage agreements in place at the time. These agreements remain as follow:
Agenda Item 3:b
S'-ID-O U
S()UTIl f)()I~~
Vedevelvpment Ulstlict
Date
Xando's Coffee & Bar
Broker: Newmark & Co.
Fee schedule: 6% of aggregate annual rent for years 1-7; and 4.5% of aggregate annual rent
for years 8-12.
Payment: ~ upon execution of sublease and ~ upon commencement of business
Total Commission: Approx. $45,320
Status: Paid
Paradizzo & Bikers Image
Broker: Comreal of Miami, Inc.
Fee schedule: 6% of aggregate annual rent for years 1-5; and 4.5% of aggregate annual rent
for years 6-10; and, 3% of annual aggregate rent for years 11-15
Payment: 1/3 upon execution of the sublease; 1/3 upon commencement of tenant paying
minimum rent; and 1/3 six months after commencement of tenant paying minimum rent.
Total Commission: Approx $142,011
Status: $67,140 paid/$74,871 currently due based upon payment schedule
Fuddrucker's Bar and Grill
Broker: Mayer Development Group
Fee Schedule:
InitiallO-year lease term: 6% of aggregate annual rent for years 1-5; 4.5% of aggregate
annual rent for years 6-10
Renewal Option: 3% of aggregate annual rent for years 11-20 (subject to exercising of
option to renew lease term for 10 years).
Payment: 1/3 upon execution of the sublease; 1/3 upon commencement of tenant paying
minimum rent; and 1/3 six months after commencement of tenant paying minimum rent.
Total Commission: Approx $66,615 for initial lO-year lease term & $51,163 upon
Fuddruckers exercising renewal option for second 10-year term, for a total of $117,778
Status: $22,205 paid/$44,410 due, based upon payment schedule for initial 10-year lease
term.
Note: Funds to cover commission fees for the renewal option will be escrowed within a year
of execution of the sublease agreement and payable when the option is exercised, with
interest earned to follow the money.
At the time funding was appropriated by the RDA to reimburse MBRI for brokerage fees, the amount
was based upon fees already paid by MBRI in the amount of$112,460 (comprised of $45,320 to
Newmark & Co., for Xando's lease and $67,140 to ComReal for the ParadizzolBiker's Image lease),
as well as $149,044 for estimated future obligations (comprised of the balance due to ComReal for
the ParadizzolBiker's Image lease, in the amount of$74,871, the total due to Mayer Development
group in connection with the Fuddrucker's lease, in the amount of $66,615, and a contingency
amount for the vacant area under negotiation).
MBRI has since been reimbursed a total of $134,665, leaving a balance of $126,839. With the
termination of the Master Lease Agreement, the RDA is now directly responsible for paying
outstanding and future brokerage fees which come due. Currently, the only fees which are due are
to ComReal of Miami , Inc., in the amount of$74,871 (representing the remaining 1/3 payment on
the originall0-year lease term plus an additional 3% for a 5-year amendment to the lease term for
a total of 15 years). As such, the Administration recommends reappropriating $126,839 in non-tax
increment funds from City Center to pay the outstanding and future brokerage fees which come due.
~
LAL:~:kob
Attachments
t:\agenda\may 1 0, 2000\rda\broker I. .mem