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Home My WebLink AboutR-93-0163J--93--1 s3 2/19/93 12 0 RESOLUTION NO. 9 3 - 163 A RESOLUTION, WITH ATTACHMENTS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE LEASE AGREEMENT DATED JUNE 29, 1979, IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI AND THE CORAL REEF YACHT CLUB (CLUB), THEREBY EXTENDING THE TERM OF SAID LEASE UNTIL JUNE 30, 2004 AND PROVIDING AN OPTION FOR AN ADDITIONAL TEN (10) YEAR TERM; FURTHER PROVIDING FOR PERIODIC ADJUSTMENTS TO THE RENTAL PAYABLE TO THE CITY, ADDITIONAL CONSIDERATION FROM THE CLUB AND PROVIDING FOR THE DISPOSITION OF THE IMPROVEMENTS UPON THE TERMINATION OR EXPIRATION OF SAID LEASE. WHEREAS, the City of Miami and the Coral Reef Yacht Club, Inc., entered into a lease agreement on June 29, 1979 for the lease of bay bottom lands lying in Biscayne Bay; and WHEREAS, the Coral Reef Yacht Club, Ino., has petitioned the City to extend the term of said lease which expires on June 30, 1994; 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 hereby adopted by ref erenoe thereto and incorporated herein as if fully set forth in this Section. ATTACHMENTS) CONTAINED ,s CrrT COKMMCM MEETING OF MAR 1 1 19M3 Revolution rim 93- 163 Section 2. The City Manager is hereby authorizedI/ to execute an amendment to the lease agreement dated June 29, 1979, in substantially the attached form, between the City of Miami and the Coral Reef Yacht Club, Inc., ("Club") extending the term of said lease until June 30, 2004, and providing an option for an additional ten (10) year term, further providing for periodic adjustments to the rental payable to the City, as well as additional consideration from the Club in the form of a land grant, and providing for the disposition of the improvements located at the property upon the expiration or termination of said lease. Section 3. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 11th day of Ma 1993. , VIER L. ARBZ, MAYOR CITY CLERK 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. 93- 163 -2- Ab 1 M Q CITY ATT y JOB:kd:a :M3447 -3- 93- 163 qp # x THIS AGREEMENT is made and entered into this _ day of —, 1993, by and between the CITY OF MIAMI, a municipal corporation of the State of Florida, ("Lessor"), and CORAL REEF YACHT CLUB, a corporation not for profit under the Laws of Florida, ("Lessee"), for the purpose of amending a lease agreement which was entered into on June 29, 1979 and amended on May 13, 1981 and on January 27, 1982, for the lease of bay bottom lands for the construction, operation and maintenance of docking facilities and a maneuvering area for the berthing of vessels, by ,and between the same parties. W I T N E S S E T H WHEREAS, Lessor and Lessee entered into a Lease Agreement on June 29, 1979, (the "Lease"), for certain Bay Bottom Land therein described which lease term expires on June 30, 1994; and WHEREAS, Lessor and Lessee entered into two amendments to the Lease, dated respectively May 13, 1981 and January 27, 1982, (the "Amendments"), which modified the description of the Bay Bottom Land and the rental therefor; and WHEREAS, Lessee was planning on making renovations to the docks and, as a resurlt of Hurricane Andrew on August 24, 1992, Lessee's docking facilities located on the leased Bay Bottom Land were severely damaged and partially demolished requiring Lessee to attempt to secure financing in order to complete the renovations and rebuilding process; and 93-- 163 El WHEREAS, to meet the conditions of Lessee's institutional. lender to qualify for funds to reconstruct and repair Lessee's docking facilities, Lessee needs an extension of the lease term on economically feasible terms; NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained to be performed and, for other good and valuable consideration, it is agreed that paragraphs II, VII and XX shall be modified as follows: 1. Effective as of the execution hereof, paragraph II of the Lease Agreement, as amended is hereby modified as follows: The term of this Lease Agreement shall be twenty-five (25) years, beginning on the lst day of July, 1979, and terminating on the 30th day of June, 2004. Provided that the Lease, as amended, is not then in default, Lessee shall have the option to renew the Lease for an additional ten (10) year period, upon request of the Lessee submitted in writing at least ninety (90) days prior to the the 30th day of June, 2004, and subject to the written approval of the City Manager. The rent to be paid for such renewal period shall be calculated based upon a continuation of rent then being paid and the applicable adjustments pursuant to paragraph VII of the Lease as amended by paragraph 2 of this Amendment No. 3 to the Lease as amended. 2. Effective as of the execution hereof, paragraph VII of the Lease, as amended, fb deleted and replaced with the following: VII. CONSIDERATION AND AMSTMENTS, The annual rental payable by the Lessee shall be the sum of fifteen thousand dollars ($15,000.00). In -2 93-- 163 } 0 addition to such rental, the Lessee shall pay to the Lessor the total amount of any state sales tax applicable to such rental. The annual rental payments shall be due and payable commencing on July 1, 1993, and thereafter on each anniversary date thereof throughout the term of the Lease. This rent will be adjusted every year commencing July 1., 1994, at the rate of One hundred five percent (105%) of the rent for the preceding year. 3. Effective as of the execution hereof, paragraph XX of the Lease, as amended, is deleted in its entirety and replaced with the following: XX. DISPOSITION OF IMPROVEMENTS. upon the expiration or termination of this Lease, the Lessee at its option may remove any improvements in or at the leased premises which it was not entitled to construct and maintain prior to leasing Bay Bottom Lands from Lessor. If after one hundred twenty (120) days from the termination or expiration date, Lessee has not commenced and is diligently pursuing the removal of such improvements, Lessor, at its option, through the City Manager shall have the right to cause the same to be removed at the reasonable cost and expense of the Lessee. 4. The Lease Agreement, as amended, shall remain in full 4 force and effect and shall not be deemed to be repealed, amended, or modified in any manner whatsoever except as hereinabove specifically provided. -3- 93-- 163 ML IN WITNESS WHEREOF, the parties hereto have through their duly authorized corporate officials executed this Amendment No. 3 to the Lease Agreement the day and year first above written.` ATTEST: ATTEST: MATTY HIRAI CITY CLERIC PREPARED AND APPROVED BY: JULIE 0. BRU ASSISTANT CITY ATTORNEY M388:JOB:kd:csk m CORAL REEF YACHT CLUB, Lessee a not for profit corporation BY: Name: Title: (Seal) — ---- TIME CIT'' OF MIAMI , Lessor BY: CESAR H. ODIO CITY MANAGER APPROVED AS TO FORM AND CORRECTNESS: A. QUINN JOKES, III CITY ATTORNEY 93- 163 -4- A --- 7 -a ,--/ / -� OF INTER -OFFICE (vfiEMORANDUM CA=6_ TO: Honorable Mayor and Members of the City Commission FROM Cesar H. Odio City Manager DATE : MAR Z 1993 FILE : SUBJECT : Resolution Authorizing Amendment No. 3 Coral Reef Yacht Club's Lease REFERENCES: For City Commission ENCLOSURES: Meeting of 3/1.1./93 It is respectfully recommended that the City Commission adopt the attached Resolution, with attachment, authorizing the City Manager to execute Amendment No. 3, to the Lease Agreement dated June 29, 1979 as amended, between the City and Coral Reef Yacht Club for use of bay bottom land for an additional ten years terminating on June 30, 2004 at which time another ten year renewal option will be available upon the written approval of the City Manager. The Coral Reef Yacht Club (Coral Reef), located at 2484 South Bayshore Drive, owns its own upland property plus a portion of the bay bottom immediately contiguous to its upland. On June 29, 1979 Coral Reef entered into a 15 year Lease Agreement for City - owned bay bottom land contiguous to its own bay bottom land. Both the club -owned bay bottom and the City -owned bay bottom are improved by a 98-slip marina constructed and operated by Coral Reef. Approximately 60 slips are constructed over City -owned bay bottom land and Coral Reef has maintained our property insured during the lease term. Coral Reef desires to make major improvements to the docks and needs an extension of the lease term on economically feasible terms in order to qualify for reconstruction financing. The June 29, 1979 lease will expire on June 30, 1994 and contains no renewal options. Because it is physically impossible for the leased City -owned bay bottom to be utilized by any other potential bidder without having the right of ingress and egress through both the upland and bay bottom owned by Coral Reef, a legal opinion was requested on whether the lease can be renewed without adherence to competitive bidding provisions. On November 19, 1992 the City Attorney stated as follows: "...because of the unique location and characteristics of the property presently leased to the Club, adherence to the competitive procurement procedures suet forth in Charter Section 29-B would be futile. It is a fundamental rule of statutory construction that 3 - 163 departure from the literal construction of a statute is justified when such construction would produce an absurd result..." 04 40-- u�t Honorable Mayor and Members -_ of the City Commission Page 2 Coral Reef has made annual rental payments, most recently for the period of July 1, 1992 through June 30, 1993 in the amount of $11,333.13. The attached proposed Amendment No. 3 to the Lease Agreement provides for a continuation of annual rent to be adjusted every five (5) years. enclosure: Proposed Resolution Proposed Amendment No. 3 to Lease Agreement "' 163. 9 � }