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Home My WebLink AboutR-89-1102J-89-1127 11/30/89 RESOLUTION NO. 89--1102 A RESOLUTION, WITH ATTACHMENT, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE LEASE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, WITH THE COCONUT GROVE SAILING CLUB, INC., A NOT FOR PROFIT CORPORATION, FOR MODIFICATIONS TO THE TERMS OF THE LEASE AGREEMENT WHICH CONCERNS ARTICLE IV., DEFINITIONS; AND ARTICLE V., CONSIDERATION, CONDITIONS, PENALTIES AND ADJUSTMENTS TO SAME. WHEREAS, the City Commission adopted Resolution No. 79-618, dated September 13, 1979, authorizing the City Manager to execute a lease agreement with the Coconut Grove Sailing Club; and WHEREAS, the City and the Coconut Grove Sailing Club executed said lease agreement on March 26, 1980 for a period of twenty years; and WHEREAS, certain financial issues have surfaced that were neither anticipated nor intended in said lease agreement; and WHEREAS, the Coconut Grove Sailing Club has requested and the City has agreed to renegotiate certain elements of said lease agreement; and WHEREAS, it is in the best interest of the City to execute this Amendment; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute an Amendment to the Lease Agreement, in substantially the attached form, between the City of Miami and the Coconut Grove Sailing Club dated March 26, 1980. ATTACHMENTS CONTAINED Section 2. This Resolution shall become effective immediately upon its adoption. PASSED and ADOPTED this 7th day of December , 1989. XAVIER L. UAREZ, i PREPARF.B-,AND APPROVED BY WANWO V-ZLARELLO IEF ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: t a JOR E L. F NDEZ CIT ATTORNE No r I a r1�_ Ialt Ilt1`1'IOtr TO LEASE AGREEMENT Modification matte to Lease Agreement of March 26, 1980 made this day of , 1989, by and between the CITY OF MItiM1, a munica.1)aI c:orpor,Ation of the State of Florida (hereinafter referred to as "CITY") whose principal offices are located at City flail, Dinner Key, Miami, Florida 33131 and the Coconut Grave Sailing Club, 1nc., a non-profit corporation of the State of Florida (hereinarter referred to as "CLUB") whose principal offices ire located at 2990 Bayshore Drive, Miami, Flori-da 33131. W1TNESSETH WHEREAS, the Commission of CITY, by adoption of Resolution No. 79-618, dated September 13, 1979, authorized the City Manager to execute a lease agreement with CLUB; and WHEREAS, CITY and CLUB executed said lease agreement on riarch 26, 1980 for a period of twenty years; -and WHEREAS, certain financial inequities arose that were neither anticipated nor intended in said lease agreement; and WHEREAS, CLUB has requested and CITY has agreed to renegotiate certain elements of said lease; NOW, THEREFORE, CITY and CLUB hereby covenant and agree each with the other to amend the March 26, 1980 lease agreement as follows: Articles 1V. definitions, and V. Consideration Conditions, Penalties, and Ad3ustments to Same, are deleted in the entirety and replaced with the following language: IV. Definitions. For the purpose of determining the terms and conditions of this agreement, the following definitions shall be used: A. Resident of CITY. A resident of the City of Miami shall be evidenced by ownership of a home and paying ad valorem property taxes to CITY; owning and operating a business in CITY (said owner -operator holding a CITY occupational license), or, being a registered voter of CITY. B. User of CLUB facility. Any member utilizing mooring or strip storage on the premises of CLUB shall be considered a user of CLUB's facilities. V. Consideration, Conditions and Priorities. A. Consideration. The annual leases payments payable to CITY by CLUB shell be the greater of the following: L. A yearly base amount of $30,000.00, or 2. Seven and one-half (7.5) percent of CLUB'S annual gross revenues. Such gross revenues to be determined in accordance with generally accepted accounting principals and as reported in CLUB's annual financial report as prepared by CLUB's independent Certified Public Accountant in accordance with the Statement of Review and Compilation Services as promulgated by the American Institute of Certified Public Accountants. Such gross revenues are defined to include but not restricted to all amounts received or accrued by CLUB from membership dues, new member initiation fees, mooring and strip fees, bar and food sales, interest and other income. Refunds of expenses paid or accrued and income received for providing sailing instruction to the public are not included. B Condit._i(.)its. it is a condition of this lease that certain memb---rs of C1,111s who iLe users of CLUB facilities receive priorities as describe(] i.n Article V. sub -paragraph (c) below. C. Priori.tics. 1. Residents. Members of CLUB who are residents of CITY as defined in Article IV A abov(_ shall have the right of first refusal of -available mooring or strip vacancies as they occur. CLUB shall maintain and post a list of residents of CITY who have requested a mooring or strip spice. 2. t.ou-residents. Members of CLUB who are non- residents of CITY as defined in Article IV A above shall be offered available mooring or strip spaces as they occur on a first come, first serve basis only aftcic all members of CLUB who are residents of CITY have exercises their rights of first refusal. IN WITNESS WHLRLur', CITY and CLUB hereto have caused their respective names to be subscribed and their corporate seals to be affixed hereto. ATTEST: CITY CLERK _ ATTEST: SECRETARY THE C-'PY OF MIAMI, FLORIDA a mun,.cipal corporation By CITY bIANAGER THE COCONUT GROVE SAILING CLUB a nori--profit corporation of the Stat,! of Florida By CQt4MODURE CA=20CITY OF hR AF'; FLORIDA INTEROFFICE MEMORANDUM ' Honorable Mayor and Members of the City Commission Cesar H. Udio City Manager DATE NOV 2 1 1989 FILE sURJECT Resolution Authorizing Amendment to the Lease Agreement with Coconut REFERENCES Grove Sailing Club ENCLOSURES RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached resolution authorizing the City Manager to execute an Amendment to the Lease Agreement with the Coconut Grove Sailing Club. BACKGROUND: The General Services Administration Department, Property and Lease Management Division,reviewed the request to amend the Lease hgi2ement with the Coconut Urove Sailing Club. The Club is a nonprofit organization wnich executed a Lease Agreement with the city of Miami on Marcii 2u, 1980 for a period of twenty (20) years. Certain financial issues have surfaced that were neither anticipated nor intended in said Lease Agreement. At the time the lease was negotiated, a unique provision was included in the lease which tied the annual lease payment to the City's per capita property tax. The growth of the City's per capita property tax has been substantial, resulting in an increase of almost 70% in lease payments since that time. If per capita tax levels continue to increase as they have in the past, the impact would be to increase the annual lease payments to unrealistic levels. Substantially increased annual lease payments would result in prohibitively costly membership fees which could negatively affect membership enrollment thereby jeopardizing the ability of the club to maintain lease payments and continue operations. Therefore, the Club requested that this provision of the contract be reviewed. CADO -/ 4 10, Mayor and Members of the City Commission Page 2 of 2 Subsequently, the Property and Lease Management Division met with representatives of the Club to identify their concerns and to give advice as to the steps to be taken to address the issues. These discussions led to the proposal to amend the lease agreement. On October 9, 1989, the City Attorney concluded that the proposed amendment and lease agreement with the Club could be authorized for execution by the City Commission without having to adhere to public referendum or competitive bidding requirements. The proposed revisions would make the annual lease payments contingent upon the Club's gross receipts. This method of determining lease payments is standard to many City leases. Attached: Proposed Resolution Z