HomeMy WebLinkAboutR-03-0655J-03-518
06/02/03 RESOLUTION N0. 6 3 6 555
A RESOLUTION OF THE MIAMI CITY COMMISSION,
WITH ATTACHMENT(S), AUTHORIZING THE CITY
MANAGER TO EXECUTE AN AMENDMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, T-0 THE LEASE
AGREEMENT, AS AMENDED, ("AGREEMENT") BETWEEN
THE CITY OF MIAMI AND NEW SPANISH CONCEPTS,
LLC., TO AMEND SECTION 22.1 OF THE AGREEMENT
TO EXTEND THE TERM TO COMPLETE THE
CONSTRUCTION OF ADDITIONAL LEASEHOLD
IMPROVEMENTS FOR AN ADDITIONAL SIX-MONTH
PERIOD FOR THE LEASE, MANAGEMENT AND
OPERATION OF A RESTAURANT ON CITY -OWNED
PROPERTY LOCATED AT 1000 SOUTH MIAMI AVENUE,
MIAMI, FLORIDA.
WHEREAS, on March 8, 1998, a Lease Agreement was executed
between the City of Miami and Firehouse IV of Miami, Inc.,
("Agreement") for the leasing, management and operation of a
restaurant on City -owned property, located at 1000 South Miami
Avenue, Miami, Florida, for a fifteen -year period with the option
to extend for two additional five-year periods; and
WHEREAS, Resolution No. 02-582, adopted May 16, 2002,
authorized the City Manager to execute an Amendment to the
Agreement to assign the lease rights to New Spanish Concepts,
LLC. and for the following purposes: (1) implement a reduction of
the percentage for the Annual Percentage Rent, (2) establish the
CITY COMMISSION
MEETING OF
JUN 1 2 2An1
Resolution No.
03- 655
rent for the optional period, (3) modify the definition of
"Restaurant Operations," and (4) define a term for the Tenant to
perform the Additional Leasehold Improvements for a six-month
term with the City's option to extend the term for an additional
six-month period of which option was granted and expires on June
12, 2003; and
WHEREAS, Tenant has requested an additional six-month
period to perform and complete the construction of additional
leasehold improvements due to unforeseen conditions encountered
at the property;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are adopted by reference and
incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized!' to execute
an Amendment, in substantially the attached form, to the Lease
Agreement between the City of Miami and New Spanish Concepts,
LLC., ("Agreement") for the lease management and operation of a
restaurant located on City -owned property at 1000 South Miami
Avenue, Miami, Florida, to amend Section 22.1 of the Agreement to
ii The herein authorization is further subject to compliance with
all requirements that may be imposed by the City Attorney,
including but not limited to those prescribed by applicable
provisions of the City Charter and Code.
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extend the term to complete the construction of additional
leasehold improvements for an additional six-month period.
Section 3. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.'
PASSED AND ADOPTED this 12th day of June , 2003.
MiN 'q, / / I
►��NUEL A. OIAZ, MAYOR
ATTEST:
PRISCILLA A. THOMPSON
CITY CLERK
APPROVEUdftt"TC,rI ORM AND CORRECTNESS:
UANDRO VILARELL
Y ATTORNEY
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zi If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by
the City Commission.
Page 3 of 3
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AMENDMENT NO. 3 TO LEASE AGREEMENT
BETWEEN THE CITY OF MIAMI AND NEW SPANISH CONCEPTS, LLC.
This Amendment No. 3 to the Lease Agreement is entered into this day of
, 2003, by and between the City of Miami, a municipal corporation of the
State of Florida (the "City"), and New Spanish Concepts, LLC. ("Tenant") for the purpose of
amending that certain Lease Agreement between the City and Tenant dated March 3, 1998, as
amended and assigned on June 13, 2002 (the "Agreement").
WHEREAS, on May 16, 2002 the City Commission adopted Resolution No. 02-582
authorizing the City Manager to execute Amendment No. 2 to the Agreement to assign the
lease rights under the Agreement with Firehouse IV of Miami, Inc. to New Spanish Concepts,
LLC. for the leasing, management and operation of a restaurant on City owned property
located at 1000 South Miami Avenue, Miami Florida (the "Property"); and
WHEREAS, the Agreement is for a term of fifteen (15) years with the option to renew
for two (2) additional five year periods; and
WHEREAS, Amendment No. 2 also incorporated the following business terms: 1)
implement a reduction to the percentage for the Annual Percentage Rent, 2) establish the rent
for the option period, 3) modify the definition of "Restaurant Operations", and 4) define a
term for the Tenant to perform the Additional Leasehold Improvements for a term of six (6)
months with the City's option to extend the term for an additional period of six (6) months in
the event the Tenant could not complete said Leasehold Improvements; and
WHEREAS, the City has extended the initial term for the performance of the
Additional Leasehold Improvements by a period of 6 months, as provided in Amendment No.
2; and
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WHEREAS, Tenant has requested the City to extend the term to perform the
Additional Leasehold Improvements by an additional period of six (6) months due to
unforeseen conditions encountered at the Property;
NOW, THEREFORE, in consideration of mutual covenants hereinafter set forth and in
consideration of other valuable consideration the parties covenant and agree as follows:
1. Incorporation of Recitals: The recitals and findings set forth above are hereby
adopted by reference thereto and incorporated herein as if fully set forth in this Agreement.
2. Amendment Effective Date: This effective date of this Amendment shall be the date
upon which it is executed by the City Manager (the "Amendment Effective Date").
3. Section 22.1 Tenant's Obligation to Provide and Fund Additional Leasehold
Improvements is hereby amended as follows:
Within thirty (30) days of the Amendment Effective Date, Tenant, at its own cost and
expense, shall submit to Landlord for its review and approval, its plans for the commencement
and completion of the construction, and the acquisition and installation of the Additional
Leasehold Improvements (the "Plans").
Tenant, at its sole cost and expense, shall complete construction, acquisition and
installation of the Additional Leasehold Improvements within (6) - _eighteen Ll8Lmonths of
the Amendment No. 2 Effective Date. In the en+ V" ,,-M, et et plete within i
C11V V Y•VSIC smaii4h period due to no fattit of _
TenaF4 shall be gFmted an additional six menths to
,
Notwithstanding anything in the Agreement to the contrary, Tenant shall be permitted to close
the Premises during construction of the Additional Leasehold Improvements. Tenant shall
occupy the Premises without delay, and covenant to continuously conduct its permitted business
therein throughout the Lease Term following the completion of the Additional Leasehold
Improvements. Tenant hereby covenants that Tenant shall expend no less than three hundred
thousand dollars ($300,000) to complete the Additional Leasehold Improvements. Upon
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03- 655
completion of the construction, acquisition and installation of the Additional Leasehold
Improvements, and acquisition and installation of the furnishings, fixtures and equipment, Tenant
shall furnish to Landlord copies of all receipts, releases and bill of sales in connection therewith.
Except as specifically provided herein, all of the terms and provisions of the
Agreement shall remain in effect.
Attest:
Signature
Print Name and Title
Attest:
BY:
Priscilla A. Thompson
City Clerk
Approved As To Form And
Correctness
In
Alejandro Vilarello
City Attorney
Tenant: New Spanish Concepts, LLC.
Bv:
Signature
Print Name and Title
City of Miami, a municipal corporation
of the State of Florida
By:
Joe Arriola
City Manager
Approved as to Insurance Requirements
By:
Diane Ericson, Director
Risk Management
3
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^ISTRICT 2 113
CHAIRMAN WINTON
NEW SPANISH CONCEPTS, LLC.
BACKGROUND:
On March 8, 1998, the City and Firehouse IV of Miami, Inc. executed a Lease Agreement for the leasing,
management and operation of a restaurant on City -owned property located at 1000 South Miami Avenue,
Miami, Florida (the "Property"). The Agreement is for a term of fifteen (15) years with an option to
extend for two (2) additional five (5) year periods.
On May 16, 2002 the City Commission adopted Resolution No. 02-582 authorizing the City Manager to
execute an amendment to the Agreement to incorporate new business terms and to clarify permitted uses.
The City further authorized an assignment and assumption of the lease to New Spanish Concepts, LLC
(NSC). As part of the conditions for the assignment, NSC agreed to invest no less than $300,000 in
improvements to the Property. The amendment provided NSC six (6) months to complete construction of
the improvements with the City's option to extend for an additional six (6) month period which option
was exercised and expires June 12, 2003.
NSC has encountered unforeseen conditions at the Property including, but not limited to, discarding and
replacing equipment, replacement of the wood floors due to poor conditions, replacement of three entire
roofs and repairs to the remaining four, transforming the existing bar into a service operation,
construction of a new kitchen at the first floor to make it operational plus issues related to ADA
compliance requirements resulting in the hiring of additional consultants. The aforesaid elements have
exceeded the estimated original estimates, design phase and the time for completion of the improvements.
Due to the aforesaid unforeseen conditions encountered at the Property, NSC has approached the City to
request an additional extension of six (6) months to perform and complete the construction of the
additional leasehold improvements.
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161d; 4J CITY JERKS OFFICE 305 858 1610 P.02
r
J-02-496
5/16/02
RESOLUTION N0. 02.. t82
A RBSCLUTION Or THE MIAMI CITY 'COMMISSION,
WITH ATTACHMENT(S), APPROVING AN AMENDMENT TO
THE LEASE AGREEMENT, DATED MARCH 3, 1998 (THE
"AGREEMENT") , WITH FIREHOUSE IV 01- MIAMI, INC.
("TENANT") FOR THE RESTAURANT AT CITY -OWNED
PROPERTY LOCATED AT 1000 SOUTH MIAMI AVENUE.,
MIAMI, FLORIDA. ("PROPERTY"), FOR THE PURPOSE.
OF (A) INCORPORATING THE BUSINESS TERMS, AS
MORE SPECIFICALLY SET FORTH IN EXHIBIT 1
ATTACHED AND INCORPORATED, AND (B) AUTHORIZING
THE ASSIGNMENT OF THE AGREEMENT TO LARRY
HARRIS OR TO A NEW CORPORATE ENTITY OWNED AND
CONTROLLED PRIMARILY BY LARRY HARRIS;
AUTHORIZING THE CITY- MANAGER TO EXECUTE THE
AMENDMENT, IN A rORM ACCEPTABLE TO THE CITY
ATTORNEY, UPON SATISFACTION OF THE FOLLOWING
CONDITIONS; (1) TENANT SHALL NOT BE IN
DEFAULT OF ITS AGREEMENT; (2) TENANT SHALL PAY
THE BALANCE OF THE OUTS'T'ANDING RENT DEFERRED
AS A RESULT OF THE SEPTEMBER 11, 2001
TERRORISTS STRIKES; AND (3) TENANT SHALL PAY
THE OUTSTANDING BALANCE OF THE TRANSFER FEE
ASSOCIATED WITH A PREVIOUS TRANSFER.
WHEREAS, on March 8, 1998 a Lease Agreement was executed
between the City of Miami and firehouse IV of Miami, Inc,, for
the Ieasi:1g, management and operation of a restaurant on
City -owned pxoperty, located at 1000 South Miami Avenue, Miami,
Florida, (the Agreement") for a term of fifteen years, with the
option to extend for two additional five-year periods; and
CITYY4C�OMM400K
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03- 655
„i TY ,-ERK5 854 1610 F. Q.',
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WHEREAS, the business has been struggling over the last
three years and has been heavily impacted by construction in the
area, as well as a jack of parking in the area; and
WHEREAS, Tenant pas effected to sell its intereGt Jn the
Agreement; and.
WHEREAS, Tenant has proposed to the City an assignment of
the Agreement to Larry Harris, whcm the City has found to be ars
"Acceptable Operator” as defined in the Agreement, after
review -.ng his qualifications and financial strength; and
W-EREAS, as a condition to accepting tyle Agreement, Mr.
Harris has requested certain amendments regarding the use and
rental provisions of the Agreement;
NOW, ':HEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CI'_"Y
07 MIAMI, FLORIDA:
Section 1. The recitals and finaings contained in the
Preamble to this Resolution are adopted by reference and
incorporated as if fully set forth in this Section_.
Page 2 of 4
03- 655
JUN -06-2002 08 *- 50 � Y CLERKS OFFICE
305 858 1610 P.04
Section 2. The City Manager is authorized=j to execute
an amendment to .he Lease Agre=ent, dated March 3, 1998 (the
"Agreament") , with Firehouse .ry of Miami, Inc. ("Tenant") for the
restaurant at city -owned property located at 1000 South Miami
Avenue, Miami, Florida ("Property"), for the purpose of (a)
incorporating the business terms, as more specif.Lcally set `o,th
in Exhibit 1 at-, ;4r..hed and incorporated, and ib) duthori zing the
assignment of the Agreement to Larry Harris or to a new corporate
entity owned and controlled primarily by Larry Harris;
authorizing the city manager to execute the anendnert, .n a form
acceptable to the city attorney, upon satisfa--tion of the
following conditions: (1) tenant shall not be in default of its
agreement; (2) tenant shall pay the balance of the outstanding
rent deferred as a result of the September 11, 2001 terrorists
stri;te3; . and ( a ) tenant shall pay the outstanding balance of the
transfer fee associated with a previoas transfer.
Section 2. Tris ?esoyution shall become ezfective
.mmediatel y upon. its adoption and signature . of the Mayor. 2/
ii The herain authorization is further subject to compliance with all
requiremerts thea may be imposed by the City Attorney, including but not
limited to those prescribed by applicable City Charter and Code
provisicis .
z� ?f the Mayor does not sign this Resolution, it shall become effective at
the end of ten calendar days f -ort the date It was passed and adopted. if
t..*.e Mayor vetoes :hie Resolution, it shall become effect-4ve immediately
upon override of tk: veto by the City commisai.on.
Page 3 of 4.!
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JUN -06-2402 08 50 CITY CLERKS OFFICE 305 858 1610 P.05
PASSED AND ADOPTED this 23rd day of _ Mav 2002.
MANUEL A. DIAZ, R
ATTEST:
PR SCILLA: A. HOMP 0
CITY CLERK
APPROVED AS FQRlm VWD CORRECTNESS :&
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