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Home My WebLink AboutBack-Up DocumentsTitiv of 'Mtaxlit Arthur Noriega V City Manager August 20, 2020 Mr. Sergio Rok, Director, Olympia Center, Inc. 8 Southeast 2nd Avenue, Suite 600 Miami Florida 33131 RE: Termination of the Management Agreements between the City and Olympia Center, Inc. for the Gusman Theater and Olympia Building Mr. Rok, The City of Miami ("City") and Olympia Center, Inc. ("OCI") have both benefited from a partnership spanning many productive years. However, in these trying times amid the pandemic, and other multiple hardships, the challenges of running a historic theater complex have become a daunting task. In recent discussions with Mr. Robert Geitner, the General Manager of both the Theater and Olympia building, the possibility of transitioning the property back to the City was discussed. As a follow-up to those discussions, the City realizes that the burden placed upon Olympia Center, Inc. is one that will continue to create hardship, and could potentially result in an even greater cost to all parties. It is with these unfortunate facts that the City has determined that it is within the best interest of all parties to begin an accelerated process of terminating both of the Management Agreements. Pursuant to Section 25.15 of the Management Agreement for the Gusman Theater and Section 22.13 of the Management Agreement of the Olympia Building, the City of Miami is hereby providing One Hundred Eighty (180) days' notice to terminate both Management Agreements. However, to help reduce the above -mentioned burden, the City is willing to condense the timeline and terminate the agreements in ninety (90) days. If this early termination is agreeable, please sign below, on the line provided. I will have City staff coordinate a walkthrough of the property with Mr. Geitner to begin the transition process. Please have your staff begin assembling all pertinent documentation and information to be handed over to the City. Acceptance of Early Termination Respect 1 , Arthur ega. V City Manager City of Miami DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT 444 S.W. 2nd Avenue, 3' Floor, Miami, FL 33130 / (305)416-1450 Fax: (305)416-2156 C: Daniel Rotenberg, DRotenbergAnIjarnigov.corn Mark Bums, MBums@miatnigov.com miamigov.com Fernando Casamayor, FCasamayor@miamigov.com Ralph Patino, rpatino@patinolaw.com Mayor Francis Suarez, fsuarez@miamigov.com miamigov.com Robert Geitner, rgeitner@olympiatheater.org Commissioner Ken Russell, krussell@miamigov.com Terrell Fritz, fritz@downtownmiami.net OLYMPoA CENTER MC.. Olympia Center Inc. — Resolution # 200831-B RE: TERMINATION OF MANAGEMENT AGREEMENTS DATE: September 02, 2020 ADOPTED: Unanimous Vote VOTING VIA EMAIL: Ralph Patino, Carlos Trueba, Albert Rodriguez, Sergio Rok, George Cabrera WHEREAS, Olympia Center Inc. (Olympia) has received the letter regarding Termination of the Management Agreements between the City of Miami and Olympia Center, Inc. for the Gusman Theater and Olympia Building, and WHEREAS, Olympia agrees that the City of Miami ("City") and Olympia have both benefited from a partnership spanning many productive years and that the challenges of managing a historic theater complex have become daunting due to the COVID-19 pandemic, and WHEREAS, Pursuant to Section 25.15 of the Management Agreement for the Gusman Theater and Section 22. 13 of the Management Agreement of the Olympia Building, the City is providing One Hundred Eighty (180) days' notice to terminate both Management Agreements, and WHEREAS, the City Manager has extended and offer of early termination in 90 days via the "Termination Notice", and WHEREAS, Olympia Center Inc. acknowledges that the financial conditions of the current environment caused by COVID-19, have made fulfilling its fiduciary obligations to the property impossible beyond September 30, 2020, THEREFORE, the Olympia Center Inc. Board of Directors accepts early termination for a date set at December 31, 2020 noting and providing the following: • The City understands and acknowledges that the goal and desire of Olympia is to maintain operational stability for the benefit of the community and the historic Olympia Theater and Office Building • That City Administration and Olympia jointly will agree on a plan and timetable for turnover to the City of Miami • That the City will provide financial support to Olympia Center Inc. during the transition via reimbursements of expenses or other methods deemed appropriate • That City will assume payment of utilities and provide insurance coverage for the property as soon as feasibly possible • That Olympia Center Inc. will remain available to assist the City of Miami with transition to the next operational plan for the historic Olympia Theater and Office Building on a month -to -month basis subject to terms agreeable to both Olympia and the City • That Olympia Center Inc will continue to keep the Florida Department of State — Bureau of Historical Resources grant 18.h.sc.100.079 for the Olympia Theater Facade Restoration — Phase 1 active for as long as it is feasible ADDITONALLY, the Olympia Center Inc. Board of Directors appoints Board Member Sergio Rok as representative liaison with the City of Miami during the transition. Recorded on September 02, 2020 Robert Geitner Executive Director Olympia Center Inc. I Olympia Theater Theater: 174 East Flagler Street, Miami FL 33131, Office: 8 Southeast 2"d Avenue,#600, Miami FL 33131 Telephone:305-374-2444 Fax:305-374-0303 www.OlympiaTheater.org Est. 1926 NATIONAL REGISTER OF HISTORICAL PLACES LISTED IYAIMiami December 8, 2020 Via Email: MBurns(aD-miamigov.com Mr. Mark Burns, Leasing Manager City of Miami — Department of Real Estate & Asset Management 444 SW 2nd Avenue Third Floor Miami, FL 33130 Re: Olympia Theater 174 E Flagler St, Miami, FL 33131 Dear: Mark: The following sets forth our recent discussions concerning a proposal to manage and lease the referenced property: Property: Location: Size/Type: Owner: Olympia Theater, Apartments & Retail Stores. 174 E Flagler Street Miami, FL 33131 Building: 88,180 square feet Land: 21,477 square feet Consisting of: 0 U 0 0 0 co rn 0 rn rn rn 79 Apartments consisting of studios and 1 bedroom apartments M 4 Retail stores 0 1 Theater, stage, and backstage .� 10 Former apartments, now dressing rooms for theater operations. City of Miami Services Provided: Apartments: Management & Leasing Retail stores: Management & Leasing Theater: Caretaker services to maintain physical asset. No involvement with theater operations. 0 0 m V) No x 0 0 V) FEE STRUCTURE Management Fees: Start-up Fee: $3,000.00 Monthly: Five percent (5.00%) of gross collections with a minimum fee of $5,000.00 per month. Expenses: Reimbursement of all out of pocket expenses inclusive of all on - site personnel, third party expenses including, but not limited to postage, overnight delivery charges, copies, etc. Staffing: Senior Property Manager Maintenance Engineer: On -site administrative & Leasing agent: Personnel Costs: The following are estimated costs: Part-time, off -site. Full-time, on -site. Part-time/20 hours per week. Senior Property Manager: No additional cost. Included in monthly property management fee above. Maintenance Person: Inclusive of all direct costs, benefits and direct overhead. In addition, an apartment is provided on -site rent-free. On -site Admin & Leasing: Up to $20.00 per hour. Burden Percentage: Estimated at 27.50%. Leasing Fees: Apartments: $500.00 per unit for each new lease or renewal executed. Retail Stores: Six percent (6.00%) of the gross rent generated during the primary lease term with a minimum fee of $3,000.00 per lease. Construction Management: Manager shall be paid a construction management fee equal to five percent (5.00%) of the total construction cost of each individual job. Owner shall pay all costs incurred in the performance of the construction management services by Manager, including the payment of all such architects, engineers, designers, space planners, general contractors oil and subcontractors hired by Manager, on behalf of Owner, as are reasonably necessary to complete the construction, repairs or renovation required at the Property. This letter is intended as an expression of intent; it does not create any binding obligation on either party. Either party may terminate negotiations at anytime for any reason without liability to the other party, and (iii) any party proceeding on the basis of this letter (whether with or without the knowledge of the other party) is doing so at its sole risk. obtained. Sincerely, Jeremy S. Larkin C.E.O. 3 No Realizing Potential, inor RocuItc. • - Jul rill 71 AMUR MU 4 y qb % = VVhy NAI Miami NAI Miami satisfies an age old problem - providing knowledge, intelligence, expertise and solutions to our clients. While real estate advice through a broad platform of services is our main product, your business objectives are the first and overriding priority. We listen and listen hard to determine how and when we can deliver a high impact value proposition. By leveraging relationships, your NAI Miami team collaborates to fast forward your business growth. 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With more invested than traditional firms, NAI Miami takes your business personally and is committed to providing the highest level of service and smart execution. Together with "Members Firms" of NAI Global we are the world's premier managed network of commercial real estate companies, representing over 375 markets around the world. Our relationships are the cornerstone of our success. In aligning with our clients to focus on strategic initiatives, not just the next transaction, we consciously choose achieving our client's goals over immediate internal gain. At NAI Miami we possess the multiple disciplines required of a full service real estate firm with expertise in sales and acquisitions, leasing, management, financing, planning, zoning, litigation support and forensic real estate analysis. We serve our clients with a single point of contact that effectively delivers a variety of strategic and tactical solutions across platforms. We understand the realities of today's business world. The bottom line - we know when we deliver results to our clients, we all benefit. Cost savings, together with helping clients capitalize on opportunities are among the greatest benefits we deliver as your advisor. List of Services Corporate and Investment Services 1031 Exchange Acquisition / Disposition Appraisal & Valuation Auction Services Capital Markets Due Diligence Management Financing Leasing Agency / Landlord Representation Market Analysis Net Lease Transactions Portfolio Review Property Marketing Relocation / Move Management Sale/Leaseback Transactions Site Selection Subleasing Tenant Representation I. Advisory & Consulting Services Acquisition / Disposition Build -to -Suit Buy-out CAM Reconciliation Capital Markets Cross-Border/International Consulting Distribution Logistics Expert Witness Feasibility Analysis Financial Analysis Lease & Utility Audits Lease Administration Location Benefits Analysis Market Research Project Management Property Management Site Location Modeling Strategic Planning Tax Appeal Title / Escrow / Survey Valuation & Appraisals Asset Services Asset Management Asset Optimization Build -to -Suit / Construction Corporate Facilities Management Development Green / LEEDT" Consultation / Sustainability Management Property Management Trade Credits Troubled Assets/Receiverships Workouts & Restructuring 5 WON osophy !MM!Mml Engage Sol MIG IWIMMINE 'mom OWNER Miz_ PersonJized SeNce & Collaborative Teamwork. We provide custom solutions focused on your business objectives, taking a fiduciary position with your asset to maximize value at each point of the process. We will listen well, take a holistic view of your business and apply our commercial knowledge and intelligence to maximize potential and add value. When appropriate, we push the boundaries and do things differently, as our singular purpose is to achieve better outcomes for our clients. With our careful selection of seasoned professionals, who are deeply rooted and locally grown in their markets, we have developed our business to support yours over the long-term. We are local and we are global. Our diversified platform spans North and South America, the Caribbean, Europe, the Middle East, Africa, and the Asia Pacific region. As you look at growth markets, so do we — with more offices globally than any other commercial real estate firm, we are actively expanding in strategic locations so we can help you stay ahead of your competition. "Trusted to do what we say we will do. 99 NAI Miami operates on the simple principle "we do what we say we will do." We set that integrity bar very high. We establish expectations and achieve our goals through detailed reporting, collaboration, established and proven procedures, rigorous and relentless pursuit of the latest market intelligence, and by fostering ongoing relationships with the commercial real estate community. We work with clients to find creative solutions, then pursue those solutions diligently to their fulfillment. Our standards are the reason for our success. Our people are the best in the business. We're excited for the opportunity to make YOU a partner and valued client. _t y - I •eau In a _ ° e� JL HL JL • jL G.v RL 11 ■ 'sl•Rt.A+-Z� ''L 1'L IL ld EL a p • ; _ _� � ° � m � �r ,", ��s - yam• � . 4 sine + �""y'. " " :� ,:• 39 4 Y3 , � t 1, Its- i i L l tw RIM K + _ � " -4 �!,:.. .fie �' ■ `;� �+! I r F �!5a e = - t. k a : r� •. 0. • �ii�•i00 • '� �• ��•00 �• 9*0 or g`**;t6.* b44"'I . •: ••, .•1 fil Corporate solutions for long-term results,, Our proven strategies lead to real-time results, local & glob; connections and flexible solutions to each project. Around the world, corporations are under intense pressure to perform: to create or extract value from their real estate assets; to contain and reduce occupancy costs; to select optimal site locations and operate facilities with maximum efficiency; and often to achieve significant results with limited capital and _ human resources. NAI Miami understands the realities of today's is world, and meets these demands with speed and agility. Our streamlined organizational structure' i_ is designed with multi -market clients in mind. Dedicated professionals advise and support corporations, government agencies and other institutions operating in one corner of the world or throughout it. Depending on your real estate M requirements, we scale our JW services to fit your needs. -� Ll Advisory & Planning We start by listening more than we talk, and then proceed to develop the best plan of action for your circumstances. Our advisory & planning process provides a wider scope of vision for your overall strategy and can produce a more comprehensive plan of action. Our strategic consultation method presents valuable options aligned with your goals which fosters your potential to be a more effective and successful business producer within your own core competency. Transaction Management As globalization drives cross -border activity, our established system helps our clients follow their market regionally or internationally with seamless worldwide service. NAI Miami offers a transaction management matrix that gives clients access to some of the most successful, independent property consultants in the world. The end result is global capability with highly reputable local expertise in more markets - large and small. People + Process = Results Single -point -of -contact accountability. Collaborative client -service teams. Local offices in primary, secondary and tertiary markets worldwide. Customized processes facilitate consistent service across platforms and geography. Project Management Our technology platform enables us to create private and secure intranets for our clients, electronically uniting an entire team into an online integrated inventory and project management system. In assembling all the parts of a project, be it construction management, green initiatives, planned maintenance, a relocation or capital improvement, we generate systematic processes which improve cycle time and reduce errors. With this system, we have the benefit of providing tested relationships with top - tier experts and vendors who deliver the best product for each project. Portfolio Management Our team has expertise in executing optimum portfolio management services including property & facilities management, building consultancy and workspace planning & design. We deliver cost savings through attention to tenant retention, seamless lease administration, energy efficiency audits, project bidding, and by taking advantage of the extensive amount of property we manage globally. 13 NAI Miami is representative of NAI Global in the Greater Miami Metropolitan Market and the Florida Keys. Our strength is international and our passion and focus is local. Allow us to demonstrate our capabilities and commitment to your assignment. Locations by Country North America Canada Mexico United States Latin America & The Caribbean Argentina Bahamas Brazil Chile Costa Rica Jamaica Mexico Panama Peru Puerto Rico Venezuela Asia Pacific Australia China India Indonesia Japan South Korea Malaysia New Zealand Philippines Singapore Taiwan Europe, Africa & The Middle East Austria Belgium Bulgaria Czech Republic Denmark Finland France Germany Greece Iceland Israel Kazakhstan Kuwait Latvia Norway Qatar Republic of Serbia Romania Russian Federation South Africa Spain Sweden Switzerland Turkey Ukraine United Kingdom 15 IYAIMiami NAI Miami Commercial Real Estate Services 9655 South Dixie Hwy Suite 300 Miami, Florida USA 33156 +1 305 938 4000 naimiami.com List of Services Corporate and Investment Services 1031 Exchange Acquisition / Disposition Appraisal & Valuation Auction Services Capital Markets Due Diligence Management Financing Leasing Agency / Landlord Representation Market Analysis Net Lease Transactions Portfolio Review Property Marketing Relocation / Move Management Sale/Leaseback Transactions Site Selection Subleasing Tenant Representation w q IYAIMiami Advisory & Consulting Services Acquisition / Disposition Build -to -Suit Buy -Out CAM Reconcilation Capital Markets Cross-Border/International Consulting Distribution Logistics Expert Witness Feasibility Analysis Financial Analysis Lease & Utility Audits Lease Administration Location Benefits Analysis Market Research Project Management Property Management Site Location Modeling Strategic Planning Tax Appeal Title / Escrow / Survey Valuation & Appraisals Asset Services Asset Management Asset Optimization Build -to -Suit / Construction Corporate Facilities Management Development Green / LEEDT'" Consultation / Sustainability Management Property Management Trade Credits Troubled Assets/Receiverships Workouts & Restructuring 9655 South Dixie Highway Suite 300 Miami, Florida USA 33156 +1 305 938 4000 naimiami.com N,AIMiami Property Management -�Idpw it I iLA 401 . . . ..... *4r vk_ "17 �jd C411 Ilk kLL PropertyManagement Services At NAI Miami we give owners a Operations Management Financial Reporting world of property management solutions. 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NAI Miami is committed to the success of its Property Managers by fostering partnership, education and cooperation among NAI Global Members, enabling sharing of best practices including presentations, proposals, documents, collateral, tools and techniques. We help companies navigate the details of maintenance, safety, alterations, lease enforcement and real estate tax issues. We customize our services to fit your needs but never change our commitment to you. Our unique consultative process offers security and direction from over 6,700 NAI Global local market experts. NAI Global firms are owner - operated, which means they are independent and that gives NAI Miami enormous freedom to act quickly and think creatively on your behalf. Construction Management The NAI Miami Project Management team provides construction, development and tenant improvement services for office, retail, industrial, flex, mixed -use, medical, multifamily and hotel properties. Our services include project negotiation, scope definition, design schedules, architect, engineer and contractor selection, bidding, budgets and pricing, field inspections, relocations, furniture and TI coordination and vendor payments. From balance sheets, income and expense summaries, budget variances and rent rolls, we insure our accounting and invoicing procedures are clearly defined and explained. Risk Management NAI property managers are trained in policies and procedures regarding the development and implementation of risk management plans, emergency services, property appearance, maintenance and safety. From safety, legal compliance and financial standpoints, our practices minimize risk to owners, on -site employees, their customers and tenants. Property Management services Lease Administration Tenant Installation Tenant Retention Programs Cash Management and Financial Reporting Online Maintenance Request System Operations Management Construction Management Risk Management NAIMiami 9655 South Dixie Hwy Suite 300 Miami, Florida USA 33156 +1 305 938 4000 naimiami.com