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HomeMy WebLinkAboutM-98-0060CITY OF MIAMI, FLORIDA 33 INTER -OFFICE MEMORANDUM Honorable Mayor and Members ,AN - 5 1998 To : of the City Commission DATE: FILE SUBJECT :Discussion Item Regarding 1000 South Miami Avenue - Firehouse Four Restaurant FROM: Fra Rollason REFERENCES: Interim City Manager City Commission Agenda ENCLOSURES: January 13, 1998 At the December 9, 1997 City Commission meeting, the Commission directed the City Manager to negotiate with Mr. Augusto L. Vidaurreta, a client of Ramon E. Rasco, Esquire, for the Firehouse Four Restaurant property. Staff is in the process of finishing the due diligence and will report to the Commission at the January 13, 1998 Commission meeting. 98- 60 CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Jose Garcia -Pedrosa City Manager FROM: Dena Bianchino Assistant Director for Asset Management Department of Planning and Development DATE: January 12, 1998 FILE: SUBJECT: Firehouse Four 1000 S Miami Avenue REFERENCES: City Commission Agenda January 13, 1998, Item 33 ENCLOSURES: On December 18, 1997, the City Commission adopted Motion 97-888 instructing the administration to proceed with negotiations concerning the Firehouse Four lease. This motion further instructed the administration to proceed with a transfer of current negotiations from Carlos Alamilla to Gus Vidaurreta and to bring back a proposed lease for consideration by the Commission on January 13, 1998. Staff immediately met with Gus Vidaurreta and his attorney Ramon . Rasco and have nearly completed lease negotiations. Staff further requested we be provided the following items: • Firm financial commitments • Indemnification of the City with respect to the transfer and the pending lawsuit(s) against Alamilla and Associates • List of leasehold improvements to be made, and furniture, fixtures and equipment to be installed, as prepared by a qualified architect or contractor As of this writing the above items have not been provided. Mr. Rasco has requested an extension until Friday, January 16, 1998 to provide the above documents or terminate negotiations. Mr. Vidaurreta has proceeded diligently since our meeting and has spent a considerable amount of funds in performing his due diligence including obtaining construction, architectural and interior design estimates and a Phase I environmental audit. Unfortunately, the results of these services have not been received by Mr. Vidaurreta in a timely manner. Consequently, he has been unable to evaluate the financial feasibility of the project based on the proposed lease terms and the investment required. It is requested at this time that the Commission direct the administration as to whether to grant an extension to January 16, 1998 or terminate the offering and reissue the RFP. In the event the Commission extends the deadline date, a lease could be presented to them at the Commission meeting of February 10, 1998. 98- 60 Firehouse Legislation Reso. No. 96-528 July 11, 1996 Authorizing the Manager to issue a Request for Proposals for the leasing and management of a restaurant at 1000 S. Miami Avenue Motion No. 96-723 October 10, 1996 Appointing a Review Committee to evaluate and rank proposals in response to the RFP Reso. No. 97-13 January 16, 1997 Selecting Firehouse Four, LLC as the successful proposer for the leasing of 1000 S. Miami Ave; directing the Manager to negotiate a lease agreement with said proposer Reso. No. 97-148 March 20, 1997 Authorizing the Manager to execute a lease with Firehouse Four, LLC for the leasing, management and operation of a restaurant Reso. No. 97-411 June 9, 1997 Granting Firehouse Four, LLC an additional 30 days to comply with the terms and conditions of the lease agreement dated April 24, 1997; deadline to be no later than July 9, 1997 Discussion Item July 10, 1997 Direction to Administration: to begin negotiations with the second ranked firm which bid for the Firehouse Four property under the same conditions as the firm who was awarded said contract Motion No. 97-728 October 14, 1997 Directing the Manager: to require a final proposal from Alamilla & Associates, Inc. in connection with the lease of 1000 S. Miami Avenue no later than Friday October 17, 1997; further directing the Manager to come back with a recommendation for Commission consideration on this matter at the meeting of October 28, 1997 Motion No. 97-758 October 28,1997 Instructing the Administration: to continue negotiations with the second ranked firm in response to the RFP for 1000 S. Miami Avenue Motion No. 97-888 December 18, 1997 Instructing the Administration: to proceed with negotiations concerning the Firehouse lease; proceed with a transfer of current negotiations from Carlos Alamilla to Gus Vidaurreta; directing the administration to bring back proposed contract to the Commission on 1/13/98 9s- 60 DEC - 2 3- S? 7 T U E CITY OF MIAMI CITY CLERK'S REPORT ' ME IN'a CATS: December 9,1097 (which was continued to December 18.1 "7 at 10,iK.rn.) PAGEN0. 6 AO $2 A MOTION INSTAUCTINGI THE CITY MANAGER .',TO M 97.887 . llc,�TEND FOR THREE (3) MONTHS THROUGH MAACH 24, :. MQVED• PtUMMER. $ .THE . DEAD�.INE FOR MIAMt < MMUNICATIOf� INC. (HEREINAFTER" Rr;%RAEO TO ;TCI) T6:SUMMIT A FORMAL RENEWAL PfjOPO$Al. qFR CABLE . TELEVISION SERVICE$;. FURTHER tNSTRUCTINQ ADMINISTRATION TO UPQATE THE ,THE C11Y CODE 10. INCLucie NEW, FEDERAL,; AEoUI,.A'noN3 IN; CONNECTION 1N1TH CABLE TELEVISION ANI5 REMOVE . THE COWMItT' W11W tC1 FROM THE COOS AS IT EXISTS TODAY;- AND FURTHER DIAVCTINO' •THE MANAGER, TO. ISSU4 A. REQUEST FOR PROPOSALS . (FQ�LOWING : SAID ' COQ>: CHANGES). FOR . CABLE TELEVISION BIEAVIOE$ IN_THE CITY OF MIAMI Q.23 . A MOTION INSTRUCTING THE ADMINISTRATION TO M 97.-lam '... PROCEED WITH. NEGOTIATIONS CONCERNING LEASE MOVE. Pt,UM E OF FIREHOUSE; ­ FOUA PROPERTY LOCATED , •AT • 100 SECONDS©: REflALADO , uNANiMOUS SOUTH. mmi AvENtie; FURTHER INSTRUCTING ,THE - ADMINISTRATION TO PROCEED WITH A TRANSFER OF C AAENT NE6011ATIONS. FROM CARLOS ALAMILLA TO 4US . ViDAURA `CA; ANQ FURTHER OIRECTING ` THE ADMINISTfiATIO[ TG .. BRING BACK PfIQPOSED CONTRACT AND FIRM. LETTER OF COMMITMENT. FOR COMi 18SIOi ' NSIDEFIATION AND REVIEW AT -.THE COMMISSION MEETING SCHEDULED FOR JANUARY 131 1`99e. AQ 24 4irsctiort to the Administration: by Commissioner Piuinmer to allow the Coconut Grove Zrhamber of Commerce use of Paacock' Park .without. payment for utilities in connection with the Visitor's .Information Center for the first six (6) months, after which time the Chamber will have to pay for the cost of utillties. Commissioner ..6palado turthit Instructed the Administration to provide City staff whenever possible to help with said center. AO 29 Note for the Aec rd: R 27-889 appointed Cary Montero to the city Of Miami ineral Employees, and Sanitation Employees' Retirement Ttist: AO 10 We for the Rego-rd:' R 97-890 appointed Hector Serrano to • City of ill ami General Employees' and Sanitation Employees' Retirement Trust. y — 6.0 r 1000 South Miami Avenue - Comparison of Financial Terms REQUEST FOR PROPOSALS LEASE AGREEMENT WITH FIREHOUSE FOUR, LLC ALAMILLA & ASSOCIATES, INC. (Issued 7/25/96) (KIMBERLY DRISCOLL) (Proposed Lease Agreement) (Executed 4/24/97 - Canceled 7/10/97) Annual Rent, Percentage Rent and Breakpoint: Annual Rent, Percentage Rent and Breakpoint: Annual Rent, Percentage Rent and Breakpoint: Lease Minimum Annual Breakpoint Estimated Lease Minimum Annual Breakpoint Estimated Lease Minimum Annual Breakpoint Estimated Year Annual Rent % Rent Return* Year Annual Rent % Rent Return* Year Annual Rent % Rent Return* 1 $ 76,500 6% $ 2,200,000 $ 48,000 * 1 $ 76,500 6.00% $ 2,000,000 $ 60,000 * 1 $ 57,375 ** 11% $ 2,200,000 $ 88,000 * 2 $ 76,500 6% $ 2,200,000 $ 48,000 * 2 $ 76,500 6.50% $ 2,000,000 $ 65,000 * 2 $ 76,500 11% $ 2,200,000 $ 88,000 * 3 $ 76,500 6% $ 2,200,000 $ 48,000 * 3 $ 76,500 7.00% $ 2,000,000 $ 70,000 * 3 $ 76,500 11% $ 2,200,000 $ 88,000 * 4 $ 83,385 6% $ 2,400,000 $ 36,000 * 4 $ 100,000 7.50% $ 1,667,000 $ 99,975 * 4 $ 83,385 11% $ 2,400,000 $ 66,000 * 5 $ 83,385 6% $ 2,400,000 $ 36,000 * 5 $ 100,000 7.50% $ 1,667,000 $ 99,975 * 5 $ 83,385 11% $ 2,400,000 $ 66,000 * 6 $ 83,385 6% $ 2,400,000 $ 36,000 * 6 $ 100,000 7.50% $ 1,667,000 $ 99,975 * 6 $ 83,385 11% $ 2,400,000 $ 66,000 * 7 $ 90,890 6% $ 2,600,000 $ 24,000 * 7 $ 109,000 7.50% $ 1,817,000 $ 88,725 * 7 $ 90,890 11% $ 2,600,000 $ 44,000 * 8 $ 90,890 6% $ 2,600,000 $ 24,000 * 8 $ 109,000 7.50% $ 1,817,000 $ 88,725 * 8 $ 90,890 11% $ 2,600,000 $ 44,000 * 9 $ 90,890 6% $ 2,600,000 $ 24,000 * 9 $ 109,000 7.50% $ 1,817,000 $ 88,725 * 9 $ 90,890 11% $ 2,600,000 $ 44,000 * 10 $ 99,070 6% $ 2,850,000 $ 9,000 * 10 $ 118,000 7.50% $ 1,967,000 $ 77,475 * 10 $ 99,896 11% $ 2,850,000 $ 16,500 * 11 $ 99,070 6% $ 2,850,000 $ 9,000 * 11 $ 118,000 7.50% $ 1,967,000 $ 77,475 * 11 $ 99,896 11% $ 2,850,000 $ 16,500 * 12 $ 99,070 6% $ 2,850,000 $ 9,000 * 12 $ 118,000 7.50% $ 1,967,000 $ 77,475 * 12 $ 99,896 11% $ 2,850,000 $ 16,500 * 13 $ 107,896 6% $ 3,100,000 $ - * 13 $ 129,500 7.50% $ 2,150,000 $ 63,750 * 13 $ 107,896 11% $ 3,100,000 $ 14 $ 107,896 6% $ 3,100,000 $ - * 14 $ 129,500 7.50% $ 2,150,000 $ 63,750 * 14 $ 107,896 11% $ 3,100,000 $ 15 $ 107,896 6% $ 3,100,000 $ - 15 $ 129,500 7.50% $ 2,150,000 $ 63,750 * 15 $ 107,896 11% $ 3,100,000 $ - TOTAL: $1,373,223 $ 351,000 * TOTAL: $ 1,599,000 $1,184,775 * TOTAL: $ 1,356,576 $ 643,500 * This is an estimated annual percentage rent payment to the City * based on gross revenues of $3,000,000. It is of course expected that gross revenues would increase substantially over the $3,000,000 used in this example. This amount represents a 50% reduction in the total amount of rent due for the first six months of the lease, as stated in the RFP. Prepaid Rent: Prepaid Rent: Prepaid Rent: Silent $219,000 $19,125 - which represents 50% of the first 6 months of the Minimum Annual Rent (The RFP stated "The City will provide up to a 50% reduction in the total amount of rent due for the first 6 months of the lease for providing assistance in initial marketing and the grand opening") Security Deposit: Security Deposit: Security Deposit: Silent Commencing on the 4th Lease year, Tenant $38,250 upon execution of the Lease shall deposit with the City $50,000 Page 1 of 2 REQUEST FOR PROPOSALS (Issued 7/25/96) Leasehold Improvements: The estimated cost for physical improvements cannot vary below 15% of what the proposer estimated in the proposal. Performance Bond: To be negotiated Payment Upon Transfer: To be negotiated LEASE AGREEMENT WITH FIREHOUSE FOUR, LLC (KIMBERLY DRISCOLL) (Executed 4/24/97 - Canceled 7/10/97) Leasehold Improvements: $692,450 TOTAL ($283,450 for furniture, fixtures & equipment and $409,000 for construction) Performance Bond: $1,000,000 Construction Payment and Performance Bond Payment Upon Transfer: Tenant to pay City 7 3/4% of any and all consideration paid to Tenant in connection with any transfer or sale, which amount shall be reduced by the unamortized portion of the cost of the leasehold improvements ALAMILLA & ASSOCIATES, INC. (Proposed Lease Agreement) Leasehold Improvements: Not determined at this time. Performance Bond: 100% of the cost to construct the Leasehold Improvements Payment Upon Transfer: Tenant to pay City the greater of 7% of net sale proceeds or 5% of any and all consideration in connection with any transfer or sale C> Page 2 of 2 JAN-12-98 MON 06:30 PM FAX NO. P. 02/03 LAW OF 1Ck9 RASCO REININGrER & PEREZ PROFESSIONAL ASSOCIATION The Waterton) 32M Biwa Lagoon nr(ve, Suik- 700 Miami, Florida 33126 (305) 261.0500 Fax (305) 207.1787 E•maiL .+ttomevdWauoreiniriter.com January 12, 1998 Dina Bianchino City of Miami 444 S.W. 2Id Avenue Miami, Florida 33131 )'toward R. Detmr Orlando J. Cabnrra" Salomon 8. exquenui•• Paul Harrd<nn Luis A. Film Ram6n E. Ram Steven R. Reininper0+0 MercedeR M. Sellek Michael C. SklaWd, P.A. Jorge M. Vipil IuaB Manuel Pall( Otooufto "A10 aamitud is liliuurf and Wi,cu sh. "'Alrp>r p1h od N1 row •"AnnM CorrilGq-Rutalm 7 t.6idarim Re: Proposed Lease Agreement (the "Lease') by and between the City of Miami and Alamilla & Associates, Inc. to be assigned to Firehouse IV Miami, Inc. Bear Ms. Bianchino: In reference to the above -captioned, this will serve to confirm that our clients, Auguste L. Vidaurrcta and 'l'homas Graham Richardson, have agreed to invest an amount necessary to capitalize firehouse IV Miami, Inc., a Florida corporation, for the purpose of performing leasehold intproveincnts, making interior renovations, purchasing furniture, fixtures and equipment, acid providing working capital for the Firehouse Restaurant located at 1000 South Miami Avenue. The funding of these monies by our clients in an amount not less than that required by the Lease shall be subject to the following: 1. Satisfactory completion of our clients' environmental investigation and due diligence, and final acceptance of the Lease by our client; 2. The assignment of the Lease to Firehouse IV Miami, Inc.; 3. Approval of the Lease and the assignment by the City of Miami, and execution of same by the City Manager; and 4. Approval of the Lease by the Financial Emergency Oversight Board. JAN-12-98 MON 06:31 PM FAX NO. P. 03/03 January 12, 1998 Page 2 It you should require any further information regarding the capital investment for this project, please do not hesitate to contact Mr. Vidatureta or the undersigned on his behalf. RER.jec We hereby a rep to the fo oing. f/ J AUGUSTO L. VIDAURRETA 1866-1 \61 y o 8n! ami . i tr Very truly yours, & PEREZ, P.A. Ramon E. Ra.4co, Esq, /L^ THOMAS GRAHAM RICHARDSON RASCO, REIMNGER & PEREZ Professional Association r C,