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HomeMy WebLinkAboutR-89-00393 R j L a w RESOLUTION NO. 89"a39 A RESOLUTION4UTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE LEASE AGREEMENT DATED JULY 1, 1983 BETWEEN THE CITY AND THE UNIVERSITY OF MIAMI, IN ORDER TO ALLOW THE UNIVERSITY OF MIAMI TO EXERCISE ITS OPTION TO ADD ADDITIONAL CONFERENCE ROOM SPACE TO ITS LEASED SPACE IN THE MIAMI CONVENTION CENTER; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE LEASE AND AGREEMENT FOR DEVELOPMENT, DATED SEPTEMBER 13, 1979, IN ORDER TO RELEASE TO THE CITY THE ADDITIONAL CONFERENCE ROOMS WHICH WERE SUBJECT TO THE UNIVERSITY OF MIAMI OPTION; BOTH AMENDMENTS TO BE IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. WHEREAS, by virtue of Section 1.04 of the July 1, 1983 Lease Agreement between the City of Miami ("City") and the University of Miami ("University"), the University was granted an option to lease additional space on A-3 level of the Miami Convention Center; and WHEREAS, on February 25, 1988, the University submitted to the City Manager a notice letter to the effect that it -:was exercising its option to lease the additional conference room space at the option price of $81.30 per square foot, as set forth in the Lease Agreement between the City and the University; and WHEREAS, the City Attorney and independent counsel for the University have prepared a Lease Amendment which makes the additional conference center space available upon payment by the University of an option price equal to $81.30 net per square foot, �qQ for additional space on the A-3 level of the Miami Convention V R�i Center, which is reflected on attached Exhibit A; and WHEREAS, the City had previously transferred to the Miami' z Convention Center Developer,- Miami Center Assoc.i.ates, ('-MCA") ,:: pursuant .to Amendment No. 2. dated September 1, 1987 r .t0' the -Lease and Agreement for Development dated September 1-3- 197Sy 15,408 square feet of meeting room - spaces : as partist3ri` identified, therein, which had transferred space ;that Ancluded tom►: -Two , attachments are containe CITE C herein . whi.ch amend the , following: Agreement,, dated AT KEN� -.: July 1, 1983 and Agreement, _ �+f Tu n�ra.. �a � dated September 13, 1979. ��` "+ { M th !{Dr KM •►'�FHsw...,. a ... MSYi. .;Msgr.M9 114-M17FN.T �. ..1 3.n.rq space upon which the University is exercising its option, said transfer having been made subject and subordinate to said option; and WHEREAS, the City and MCA acknowledged and agreed that in the event the University exercised its option, MCA would receive the option payment of $81.30 for each square foot of the six conference rooms identified therein, the subject of the University option; and WHEREAS, the City Attorney and independent counsel for MCA have prepared Amendment No. 3 to the September 13, 1979 Lease and Agreement for Development by which MCA must transfer its leasehold interest in the conference rooms to the City, in order to enable the City to lease these conference rooms to the University, and the University, as agreed in Amendment No. 2, will pay to MCA $320,972.40 as payment in consideration of this option; and WHEREAS, as required by Section 722 of the Trust Indenture which secures the Miami Convention Center Parking Garage Revenue Bonds, the City has received a certificate from an Independent Consultant that the rights of the bondholders are not impaired by A x Amendment No. 3, or by the Amendment to the University Agreement, and the City Attorney has rendered an opinion that these two (2) proposed amendments comply with the Lease and Agreement for Development and the University Agreement, and that the City is authorized to execute these two (2) amendments; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE ■ CITY ■ OF MIAMI, FLORIDA: Section 1. The City Manager is authorized to execute an 1 Amendment, in a form acceptable to the City Attorney, to the July 1, 1983 Agreement between the City and the University to add r- certain conference rooms to the University space. s ll Section 2. The City Manager is hereby authorized to execute an Amendment, in a form acceptable to the City Attorney, to the . September 13, 1979 Lease Agreement for Development between the City and MCA, to release from the space operated and managed by 5;elt Y= MCA the above -described conference rooms, which are subject to the a University option. a ,< vc' POND A ADOPTRO this 12h day ow XAViSR•�.. .. � �@ y 3 {i ,:��`h� .+�Gs "C'iF ,- �'�iW a ��i`7E*v- � ',4i'sT ♦n' � P°.i r , si 1 .. i� i3 � x�� ,�.• � �'� . �e?�'P�3-�.a$t �A'�� ��4t �'�k��i �4����; r MA, '� v, ram:, fiy ". `k•z� �' � t i ':�"' '� ���m. _.,..e���y �a.� 71 SAY; FiRS'�` AM Nt)MENT ToLFASF st"CIN CITY of MIAMI ANb THR UNIVERSITY OF MIAMI The CITY of MIAMI, a municipal corporation under the leas o the State of Florida (hereinafter the "City"), as Lessor, and the UNIVERSITY OF MIAMI, a corporation not -for -profit organized and existing under the laws of the State of Florida (hereinafter the "University"), as Lessee, hereby enter into this First Amendment to that certain Lease agreement (hereinafter the "Lease") executed by the City and the University on July 1, 1983, and agree as follows: 1. Effective as of the 1st day of September, 1968 (the "Effective Date") there is added to the Conference Center (as such term is defined in Section 2.01 of the Lease) the area located on the A-3 level of the Convention Center presently consisting of eight thirty -seat seminar rooms as depicted and described on Exhibit "A" attached hereto and made a part hereof (hereinafter the "Conference Rooms"). The Conference Rooms consist of 4,090.66 square feet. As of the Effective Date the Conference Rooms have been added to the Conference Center and the University is obligated to pay rental with respecttothe 5 Y Conference Roomg in the amounts specified by Article 4 hereof: 2. As of, the Effective Date the Conference = Rooms have.for all purposes of the Lease been considered a part of the Conference Center and all provisions of the Lease are applicable with respect thereto. Accordingly, the term of the Lease with 1 El, r j t ,Q1 is ytl "ldy '1d'hy; 4 ' ` sY. il' ♦� 't. 3 z � � ., .. r. _. .. ., ,_ .... 7. .. ..._. .. ..,. .• .,,'4"� .f4•rt>..5='F. ,.+.._�`%•k�a•�§:!�x?i - c � J �y k Mgfs«WmwNulv�yNlYilli47Y iMwa+uMa.'w�t�i ` reA t teethe Conferoftei Room& ce�m8+enred upon the Effective fiats 4r shah terminate at the same date that the Lease termiinate$ with respect to the space originally included in the Lease. 3, The City acknowledges that the University's options to extend the lease term as set forth in Section 1.03 of the Lease shall apply equally to the Conference Rooms. No Basic Rent shall be payable for either additional term. 4. The City and the University agree that the additional Basic Rent for the Conference Rooms shall be (as contemplated by Section- 1.04of the Lease) Eighty -One and 30/100 Dollars ($81.30) per square foot for the 4,090.66 square feet contemplated under this First Amendment. The total additional Basic Rent shall be $332,570.66 which shall be paid within five days of the date of execution of this Amendment as provided for herein. The City hereby directs the University to make payment of the additional Basic Rent of $332,570.66 plus interest thereon from the Effective Date until paid, to Miami Center Associates, Ltd., a limited partnership organized and existing under the laws of the State of Florida (hereinafter "MCA") as stipulated in Amendment No, 3 dated as of -September 1, 1988 amending a Lease and Agreement for Development dated September 13, 1979 between the City and MCA. Interest shall be calculated at an annualized Y rate of eight percent (8t) simple interest. i -2- LL s, ax r - q,! R yrd - r�s" < t — f f The fourth santenc 17.01 of the Lease beginning with "The University is not obligated ..•".is hereby eft d and the following is added in its places "The City hereby grants to the University an easement to the common areas such as corridors, hallways, toilets, stairs, etc., including without limitation, an easement for ingress and egress, and the University is not obligated to pay rent for the use of such common areas." 6. The -University and the City acknowledge and agree that by -accepting possession of the Conference Rooms and by making the Conference Rooms subject to the terms of the Lease, the University has received the maximum amount of space subject to its option pursuant to Section 1.04 of the Lease.and the University has no option on, and is not entitled to any additional space in the Convention Center from either the City.or , MCA under Section 1.04 of the Lease. 7. This Amendment shall be of no force and effect unless J r,, and until it -is approved by the City Commission and executed by t 1 > botti .the City Manager and the University. 8. Except as specifically modified hereby, the Lease < Y remains in full force and effect and is ratified and confirmed.....Y x: -3 f f 1 { 1 :� Ski i,, kt�G-�•+. h fi''i t 4I' &ecretar University of M ami _ ;-•^ Approved as to Form and Correctness: 1Ti.t•.r a Legal Counsel, 0nvers ty o Miami r s A t t JFH�264F `$ +ii• fY�n �-l�fif� �pproxi ��3 s i f"t 3 i mst'loo ld Room _ .. .Approx. rox. � 8 3 sq. feet 3i �� a oviiiea ico ns°,`_tA. eod 8) 4. approx. loos sq. feet 4�. CaMallie Room approx, 483 sq. feet 5i Poinciana Room approx. 1008 sq. feet �. i►liamandstoom approx. �t83 sq. feet tfk { �4e �,AN �x'1 '�' _�' '•�$Ca 2 seats} � A' 3K A i, t � '.�y7��'�,' i 1 5 �¢ida Vs, s s x N i+ � yrE��}.�..saC:� fd's s ���C'�`�p. T �µ"K [s',i•"sb i � +fy j Ql M�F j r �y� 5 ,, a Paige 1 Of 2. a r MILB amenament numoer s &s enterea into as or cnis Asti oe i bf September# 1988 (the `Effective Date"), amending a Lease and Agreement for Development ( the "Lease") dated September 13, 1979 between the City of Miami, a municipal corporation of the State of Florida (the "City") and Miami Center Associatest Ltd., A Florida limited partnership ("MCA"). RECITALS: A. The Lease was modified and restated by that certain First Supplement to Lease and Agreement for Development dated . July 11 1980 by and between the City and MCA. B. The Lease was amended by that certain Amendment fl `- dated September 11, 1986 by and between the City and MCA (Amend- ment #1") C. The Lease was further amended by that certain Amendment No. 2 to -Lease Agreement by and between the City and MCA dated September 1, 1987 ("Amendment No. 20). D. The City, pursuant to the Lease. as modified by the First Supplement to Lease and Agreement for Development, Amend- ment #1 and Amendment No. 2 to Lease Agreement (sometimes'collec- tively referred to as the "Lease as Amended") leased to MCA cer- tain meeting room spaces more particularly described on Exhibit "A" attached to and made a part of this Amendment (when used herein the term "Conference Rooms" shall mean only those Confer- ence Rooms specifically referred to on Exhibit "A") and trans- ferred control, operation and maintenance of the Conference Rooms to MCA. E. The City and MCA recognized in the Lease as Amended that the University of Miami (the "University"), pursuant to that , certain Lease dated July 1, 1983 between the City and the Univer- sity.(the "U.M. Lease") possesses an option to lease the Confer- `a ence Rooms. ` F. The University has. decided to exercise its option to lease the Conference Rooms and has notified the City of its intent to exercise its option. G. MCA must transfer its leasehold interest in the Confer- ence Rooms to the City in order to enable the City to lease: the Conference Rooms to the University. 4; , H. MCA desires to convey back to the City all of its leasehold interest in the Conference Rooms and the City agrees t that in accordance with the Lease as Amended MCA should -be: com. pensated for such conveyance. rho r;S- ti;Yrr�. ll - tr r Sid i Y i�,.u`2fa,Y�`� ''',- a3"i�•b«__ -.Y Zr1 l `� t �+wui:.l.r�f� yewYa.tishah.++++u-r....+.PFwi+sjiB+i is i .. rt' 4 The City Commission has authorized the City: rta s execution of this Amendment on behalf of the City with MCA pursb ant -to the terms and conditions hereinafter contained. I TERMS NOW, THEREFORE, in consideration of Ten Dollars ($10.00) and the. mutual obligations and convenants contained in this AmendAft menu and subject to the terms and conditions hereafter stated# the parties to this Agreement understand and agree as followss 1. The recitals set forth above are incorporated in the terms of this Amendment as though set out in full. 2. As of the Effective Date MCA transfers and conveys to the City all of its right, title and interest in and to the Con- ference Rooms, including without limitation, its leasehold inter- est in the Conference Rooms and any right of control, operation or maintenance thereof. 3. ' As stated in Section 4.1 of the Lease as Amended, MCA shall be entitled to receive, and the City shall arrange for pay- ment to MCA of $81.30 per square foot of transferred space repre- senting the additional Basic Rent (as defined in the U.M. Lease and in Section 4.1(a) of the Lease as Amended) to be paid by the University as consideration for exercising its option to lease the Conference Rooms under the U.M. Lease. 4. The total amount of additional Basic Rent shall be $332,570.66 which $332,570.66 together with interest thereon from the Effective Date until paid shall be paid by the University to MCA simultaneously with the execution of this Amendment. 5. As of the 'Effective Date, MCA shall be released from any. and all liability, for any and all claims, offsets, obliga tions and damages arising prior to the Effective Date as a result of, or in connection with, its lease, use, operation, maintenance or control of the Conference Rooms. 6. As of the Effective Date, the City shall be released by tF MCA from any and all liability, for any and all claims, offsets, obligations .and damages to which MCA may be entitled, arising _ prior to the Effective Date as a result of or in connection with the Conference Rooms. 7. MCA, by its acceptance of the additional Basic Rent z from the University, waives any rights to request alternate or substitute space from the City in exchange for the Conference r Rooms. ' u 8. The City acknowledges and agrees that by accepting posy-, session of the Conference Rooms the University has received the z y 2-<h , i . } i — t4 3r.".iipLs.,4.. _ - �= i nba+e� 1AAx Mount of space that it is entWed to .under Section i 04 of -the University Lease and that MCA has no further obligation or duty pursuant to Section 4.1 of the Leaso as Amended to convey, tiny additional space to the pity for the University once the CC1n. farance Rooms are transferred. 9. It is further understood that all of the terms and con ditions contained in the Lease as Amended shall retrain in fuli force and effect without modification except to the extent modi� Pied in this Amendment Number 3. The Parties have caused the Amendment Number 3 to be exe- cuted by the respective duly authorized officials as of the day and year set forth in the first paragraph. CITY OF MIAMI, a municipal T corporation of the State of, Florida 'ATTEST: By: NATTY HIRAI CESAR H. ODIO City Clerk City Manager Miami Center Associates, Ltd., a Florida limited partnership Byt Sierra Reflections Corp., as Managing General Partner ATTES t By . t Corpo a cretary ahi law Vice President (SEAL] APPROVED AS TO INSURANCE APPROVED AS TO FORM AND REQUIREMENTS ' CORRECTNESS r x /• e Insurance Mena er. ✓ F t 9 JO GE F RNANDEZ; t Ci y Atto ey; 121RL0248C �. 32200.0001 1f .r e: K t • F .y may% }t,s4 •. fl•� f .`1 TA t S� .-� Yk �� r L 1 �'g-i p kk 6� t ,'L '�iL'. 7 r �t kr��G' •4'4'TY��} h i 5M Y�y,� „K. E' r _�• '#^P 'ri `:{L �•4 txt J �"y�`f ',.t nay -meeting Room Spaces, L 4r t Lahtatia ROOM approx. 493 � .. Marigold Room approx. ` 483 sq. ft. r 3 Bougainvillea Rooms (A and R) x. 1008 sq. ft. 4 Camellia Roots approx. 483 sq. ft► 5. Poinciana Room (A and B) approx. 1008 sq. ft. ;G.i1laraandn Room approx. 483 sq. ft. F X i N r'3 i y t.>t .- .tf`h ���,, �`-5•' 'Z4.Ra"Y K i1,.r'Sr'a*t i t� _ > _ 5. �5,��.. -121RL0249C ��F� x • r � � '+ } �t�r's'SY'� r a `r' �r fi �-�, yes � }� �yt,,ya 3 <� k SL Gi 1`•ti��'p v�r`�-, .. �` 1>!K+.rr+� .:r ink f �F Xr yr''n-uf t .-ti•rhnt �. �i����'i�\S :v-t �'ti 3�sr..�t�� h �.g. �. S�+F pt 't y fi¢" udr M St e 1 r e rc pp 'C i.'4Y?c �-zy ,,c � ft ;x 2 fia a�5 fir\ i y,. yt63 ^`ywf- "' ...� .�r.:a.. r a.�� 1/ V/�A/ 1 ■ B■ V `1 11 V111 §tJXN AIL. koi�i�i % ■' ! 'i Page 2 of 2.._. -� ,. ---._.__.�...._.L..._. .-. :.y _:c .....,;-.=,. r.: m:. ..mH�s.t. mr*:=��>. c+-n ;a. .r�'..�r, e^ =' ..'7i_..<"'T's3".-n�"d.'tN�,vl7ic �"e'a�`4.�4':^ .•-.:5 �. .::.,_ .. ��,?�.Y'etL-���az=;ran•.t'i9rs�f+ww:wr...�.-....,-:._ _,.:__..... � � � �����I������������������� ?"� Honorable Mayor and Members :nre JAN - 3 1989 PILE of the City Commission :OBJECT Resolution Authorizing Execution of Amendment No. 3 to Lease with MCA; Amendment to Lease OtA Cesar H. Odio 9E,ERENCE?ith University of Miami City Manager ENCLOSURES. RECOMMENDATION: It is respectfully recommended that the City. Commission adopt the; Attached resolution which authorizes the City Manager to execute the following agreements: (1) a first amendment to the Lease } Between the City and the University of Miami relative to. the , Miami Convention Center; and (2) Amendment No. 3 to the, Leased = Between the City and Miami Center Associates, Ltd. relative .to the Miami Convention Center. BACKGROUND 04 of the Lease Agreement dated July 1,84w, Pursuant to Section 1. 1983 Between the City and the University of Miami, .the University «x of Miami ("University") was granted an option to lease up to, z 6,277 net square feet of conference room space on A-3 level ofr, By way of a letter to the the Miami Convention Center. ss� Manager on February 25, 1988, the University affirmatively fr exercised that option. As an option payment, the University. paysY $81.30 per square foot. The University is receiving approximately 4,000 square feet and is making one option payment xy ■ of $320,972.40. The additional conference rooms then become part u Nilof the space leased by the City to the University and are subject ri to all terms and conditions of the original lease. Thek Attorneys Office and independent counsel for the cniversity; have` � Mb prepared a Lease Agreement* effectuating the exercise of Chia � ' option. The conference rooms subject to the University.; .on �E currently operated, managed and controlled ,by,.MCA, thr� Convention Center:Developer. Pursuant toL Amendment t �.pto between the City and MCA' in 1987, -these roo@aµ ;t! r. transferred to MCA expressly, ` subject` anal subordinate' tcSP#y4 h University option in the event..the , gniversity ever ea;OXoi.sed►+ r ; < t was agreed. in Amendment No, 2.'ahat:' in: the event= ,{ option. 9. head to surrender ant. release . these . rooms to the Dntere►t i ent being made b khe vsra u receive the opt#an pym. WO ld y . 7o.h5•^S 7Tt t p L t it ti 1 l i •ir �j;S,P;.'. C WN K yfi� v _ c�2 rif {57"L' k 1 - yy r v. i q a t4 ;gam- ;�:� q t1 t �, ♦} �' t t r' ; R,`+,X" •-i1.L` 4''' . t' rT'.,k:. - m t a �$a 1,. Si?3•,4� $.t °x, '.a'� '.'i4 x`°a ir`rSw s..,, �r r :� RK .o e' y Sonorihfe' Mayor and Members September 1�88 of the City Commission Page 2 t_ - $81,.30 per square foot of transferred space as consideration - exercising its option to lease the additional conference rooms under the lease. The Office of the City Attorney and counsel for MCA have prepared the appropriate Amendment No. 3 to the Lease Between the City and MCA; wherein, as set forth in Amendment No. .20,MCA •receives the option payments and transfers these conference rooms back to the,. - City for subsequent lease to the University. - z & r v4f,•,ly� .S Attachments �s i F t } r ti 4 3 `'`'„z''�'' 7Fik'• r1�`tlal_.�yy ga i? �'1a it T + aap Sm'}S' €thy sLE t ray