LTC 032-2019 City Use of the Coral Rock House, Located at 1701 Normandy Drive, Owned by UNIDAD of Miami Beach, INC. and Consisting of Approximately 1,307 Square Feet MIAMII .. FACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
OFFICE OF THE CITY MANAGER
032-2019 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members o the City C•• mission
FROM: Jimmy L. Morales, City Manager
11,
DATE: January 17, 2019
SUBJECT: CITY USE OF THE CORAL ROCK HOUSE, LOCATED AT 1701 NORMANDY
DRIVE, OWNED BY UNIDAD OF MIAMI BEACH, INC. AND CONSISTING OF
APPROXIMATELY 1,307 SQUARE FEET.
The purpose of this Letter to the Commission (LTC) is to inform the Mayor and City Commission
regarding the status of discussions between the City and Unidad regarding the future use of the
Coral Rock House.
BACKGROUND
Unidad opened the Miami Beach Hispanic Community Center at the Coral Rock House in 1999.
Unidad ceased utilizing the structure in 2013 after the North Shore Senior Center was
constructed at Ocean Terrace and provided the organization with a new home. In early 2018,
the City approached Unidad to discuss leasing the Coral Rock House.
At its April 20, 2018 meeting, the Finance and Citywide Projects Committee (FCWPC)
discussed potential uses of the Coral Rock House by certain City departments. The various
departments being considered included Housing & Community Services, Parks & Recreation
and/or Code Compliance. At the time, the minimum cost to repair the building was estimated at
approximately $60,000. The rent the City would pay to Unidad was estimated at approximately
$50,000 annually. Staff was directed to further research the costs associated with occupying
the building and to bring the matter back to the FCWPC.
Since that time, upon additional inspections, and determination of interior renovation
requirements, the cost to make the building suitable for City staff was estimated in excess of
$300,000, representing a substantial City investment to accommodate a minimal number of
employees in the 1,327 SF building.
On November 1, 2018, the Administration met with Unidad to discuss terms under which the
City would be willing to proceed with a lease. The basic terms discussed were as follows:
• Ten (10) year initial term with two (2) renewal options for five (5) years each
• Base rent at $50,00 annually
Letter to Commission—Coral Rock House
January 17, 2019
Page 2 of 2
• City would commit to investing at least $300K in improvements over the initial ten (10)
year term
• The $300K investment would be amortized over the initial ten (10) year term and
deducted from Base Rent (i.e. $30K annual rent deduction)
• City would have an Option to Purchase at the end of the initial term, or during any
renewal term, at then current fair market value
On January 8, 2019, Unidad advised the City they are exploring other options for the Coral Rock
House. Unidad indicated it did not want to sell the facility or see it lose its historic
significance to the Miami Beach Hispanic Community. Unidad also indicated it is
working with various individuals and entities to restore the Coral Rock House and re-
open it.
Given this latest response, the Administration is withdrawing this referral.
Please contact Kathie Brooks at extension 6249 if you would like to discuss further.
JLM/KGB/MMM
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