HomeMy WebLinkAboutR-03-0840J-03-624
07/23/03 03— 840
RESOLUTION NO.
A RESOLUTION OF THE MIAMI CITY COMMISSION,
WITH ATTACHMENT(S), AUTHORIZING THE CITY
MANAGER TO EXECUTE AMENDMENT NO. 3, IN
SUBSTANTIALLY THE ATTACHED FORM, TO THE LEASE
AGREEMENT BETWEEN THE CITY OF MIAMI AND THE
UNITED STATES SAILING CENTER, INC., TO
CORRECT THE FORMULA FOR THE CALCULATIONS OF
COST OF LIVING INCREASES TO THE MONTHLY RENT,
COMMUNITY SERVICE FEE AND TRANSPORTATION FEE;
AND AUTHORIZING THE CITY MANAGER TO ALLOCATE
A RENT CREDIT, IN THE AMOUNT OF $1,827, AS
REIMBURSEMENT TO THE UNITED STATES SAILING
CENTER, INC. FOR THE EXCESS RENT PAID BASED
ON THE APPLICATION OF THE INCORRECT CONSUMER
PRICE INDEX FORMULA FROM OCTOBER 1, 1997
THROUGH JUNE 30, 2003, WITH SAID CREDIT TO BE
APPLIED AGAINST THE NEXT AMOUNT OF RENT UNTIL
EXHAUSTED.
WHEREAS, the City of Miami ("City") and the United States
Sailing Center, Inc. entered into a Lease Agreement dated
September 22, 1997, ("Lease") as amended, for a fifteen -year
term commencing on September 22, 1997, and expiring on September
2012, with the option to renew for one additional five-year
period; and
CITY COMMISSION
MEETING OF
J!! A_ < 4 20,83
Resolution No.
... 840
WHEREAS, the Lease provides for annual adjustments to the
Monthly Rent, Community Service Fee and Transportation Fee based
upon increases in the Consumer Price Index ("CPI"); and
WHEREAS, the formula provided for in the Lease to calculate
the CPI percentage results in a compounding effect to the
increase; and
WHEREAS, the administration recommends that the CPI formula
be amended;
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
Amendment No. 3, in substantially the attached form, to the
Lease Agreement, between the City and the United States Sailing
�i 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 City
Charter and Code provisions. 11
03- 840
Page 2 of 4
Center, Inc., to correct the formula for the calculations of
cost of living increases to the Monthly Rent, Community Service
Fee and Transportation Fee, as set forth in Section 8.4 of the
Lease, thereby eliminating the compound effect.
Section 3. The City Manager is authorizedll to allocate
a rent credit, in the amount of $1,827, as reimbursement to the
United States Sailing Center Inc., for excess rent paid based on
the application of the incorrect CPI formula from October 1,
1997 through June 30, 2003, with said credit to be applied
against the next amount of rent until exhausted.
Section 4. This Resolution shall become effective
immediately upon its adoption and signature of the Mayoral
z/ 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 4 IJ 3_ 840
40
PASSED AND ADOPTED this 24th day of July , 2003.
ATTEST:
a
PRISCILLA A./THOMYSON
CITY CLERK
APPROVED AUF M CORRECTNESS
RO VILARELLO
CI ATTORNEY
W7375:tr:AS:BSS
EL A. DIAZ, MAYlf-t
Page 4 of 4 03— 840
AMENDMENT NO.3 TO LEASE AGREEMENT BETWEEN THE CITY OF MIAMI
AND UNITED STATES SAILING CENTER, INC.
This Amendment is entered into this day of
2003, by and
between the City of Miami, :, :ounici!!al c;,:-noration pf`the State of Florida (the "Lessor"), and
United States Sailing Center, Inc., (the "Lessee") for the purpose of amending that certain
Lease Agreement between Lessor and Lessee dated September 22, 1997, as amended on
October 5, 1998 and June 18, 2002 (the "Lease")
WHEREAS, Lessor leased to Lessee approximately 76,149 square feet of real property
and improvements thereon, within David Kennedy Park for a term of fifteen (15) years
commencing on October 1,1997 and expiring on September 30, 2012 with the option to renew
for one (1) five year period; and
WHEREAS, this Amendment shall modifv the wording in Section 8.4 entitled
"Adjustment of Monthly Rent, Community Service Fee and Transportation Fee" to correct the
formula for the calculations of the CPI percentage;
NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and
in consideration of other valuable consideration the parties covenant and agree as follows:
1. Effective October 1, 1997, Section 8.4 entitled "Adjustment to Monthly Rent,
Communitv Service FGa a j4 " Imnscortarion Fee" is hereby deleted in. its entirety to read as
follows:
A. Lessee agrees that, as provided for below, the Monthly Rent, the
Community Service Fee and the Transportation Fee shall be increased on the
Anniversary Date by any increase during the prior year in the CPI. Said
adjustment shall be hereinafter referred to as the "CPI Escalation ".
The CPI Escalation of the Monthlv Rent shall be equal to Monthly Rent
in effect for the immediately preceding Lease Year plus the product of that
Monthly Rent multiplied by the "CPI Percentage " (as defined below).
The CPI Escalation of the Community Service Fee shall be equal to the
Community Service Fee in effect . for the immediately preceding Lease Year
03-- 84-0
plus the product of that same Community Service Fee multiplied by the "CPI
Percentage " (as defined below).
The CPI Escalation of the Transportation Fee shall be equal to the
Transportation Fee in effect for they immediately preceding Lease Year plus
the product of that same Transportation Fee multiplied by the "CPI
Percentage " (as defined below).
The CP1 Percentage shah equal the fraction (i) whose wanerutor
equals the total of (a) the monthly Index published immediately prior to the
Anniversary Date (or the nearest reported previous month), minus (b) the
monthly Index published immediately prior to the Anniversary Date of the
preceding Lease Year (or the nearest reported previous month) and (ii)
whose denominator is the same monthly Index as (b) above.
If the Index is discontinued with no successor Index, Lessor shall select
a comparable index.
Le,5sor shall comiput-, the 'r Escalations and send a notice, with
calculations, to Lessee setting forth the adjusted Monthly Rent, Community
Service Fee and Transportation Fee within sixty (60) days of the
commencement of each Lease Year or as soon as such Index is available. In
the event the Monthly Rent increases, Lessee shall pay to Lessor within thirty
(30) days of receiving such notice, the additional Monthly Rent owed.for the
months, which have elapsed in the current Lease Year. In the event the
Comm..nuy Service Fee i,icreases , id Lessee has paid a Community Service
Fee during the time, which has elapsed in the current Lease Year, Lessee shall
pay to Lessor within thirty (30) ,lays of receiving such notice, the additional
Community Service Fee owed. In the event the Transportation Fee increases
and Lessee has paid a Transportation Fee during the time, which has elapsed
in the current Lease Year, Lessee shall pay to Lessor within thirty (30) days of
receiving such notice, the additional Transportation Fee owed.
Except as specifically provided herein, all of the terms and provisions of the Lease
Agreement as amended shall remain in effect.
In «ritness whF: of, 'he parties hereto have executed this Amendment No. 3 to the
Lease Agreement on the day and year first above written.
k"ji�=001
Print Name
LESSEE:
United States Sailing Center, Inc.
LOW
President or other authorized
Corporate officer
2
03- 840
Print Name
EESSOR:
City of Miami, a municipal corporation
ATTEST: of the State of Florida
By:_____---- By:
Prtscilla A. I hompson Joe Arriola
City Clerk City Manager
APPROVED AS TO FORM AND
CORRECTNESS
Un
Alejandro Vilarello
City Attorney
3
03-- 840
CITY OF MIAMI, FLORIDA CA=9
INTER-OFFICE MEMORANDUM
TO: Honorable Mayor and Members
of the City Commission
FROM: Joe Arriola
Chief Administrator
RECOMMENDATION:
DATE: JUL 16 2003 FILE:
SUBJECT: Amendment No. 3 to the
Lease with United States
Sailing Center, Inc.
REFERENCES:
City Commission Agenda
ENCLOSURES: July 24, 2003
It is respectfully recommended that the City Commission adopt the attached Resolution
to authorize the City Manager to execute Amendment No. 3 to the Lease Agreement
between the City and United States Sailing Center, Inc. to correct the formula for the cost
of living increases to the Monthly Rent, Community Service Fee and Transportation Fee,
and further authorizing the City Manager to allocate to the U.S. Sailing Center, Inc. a rent
credit in the amount of $1,827.00, thereby reimbursing the U. S Sailing Center, Inc. for
the past overpayment in rent based on the incorrect formula.
BACKGROUND:
The City has entered into a Lease Agreement with United States Sailing Center dated
September 22, 1997 for a term of fifteen (15) years with an option to renew for one (1)
five (5) year period.
The Lease provides for annual adjustments to the Monthly Rent, Community Service Fee
and Transportation Fee based upon increases in the Consumer Price Index ("CPI"). The
formula provided in the Lease to calculate the CPI percentage results in a compounding
effect to the increase that was not intended by the parties. The proposed amendment will
correct the formula effective October 1, 1997 through June 30, 2003, thereby eliminating
the compound effect.
Financial Impact: There is financial impact. Due to the correction of the CPI
formula, a rent credit in the amount of $1,827.00 shall be granted to U.S. Sailing
commencing with the execution of this amendment.
JA/LMH//IC.ItC/' K/eb:mCC/USSC Amendment No. 3
03- S JO
Budgetary Impact Analysis
Department Economic Development Division:
Commission Meeting Date:.i� 24 , 2003
Title and brief description of legislation or attached ordinance/resolution:
Resolution authorizing an amendment to the lease with U.3. Sailing Center
I . Is this item related to revenue? No ❑ Yes ® Revenue Source:
Results in credit (loss revenue) in the amount of $1,827
?. Is this item an expenditure? No ❑ Yes x❑ Amount:
General Fund Account No:
Special Revenue Fund Account No:
CIP Project No:
3. Are there sufficient funds in Line Item? No: ❑ Yes: ❑
Sufficient funds will he transferred from the following line items -
ACTION ACCOUNT NUMBER
TOTAL
From nq 5Vt)p. 0 organo 1. q. d 7O
$ % 27. °"
From
$
To
$
To
$
4. Is this item funded by Homeland Defense/Neishborhood Imnrovement Bonds? No El Yes M
Project Name
Total Bond
1" Series
Tol Allocations/
Balance
Dollars Spent
Allocation
Appropriation
Encumbrances
to Date
Comments:
by:
['A
Date: '� I I I
-7///0-3
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Datt
APPROVALS
Verified by CIP: (If applicable)
Director/Designee
Date:
�� 03- 840