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HomeMy WebLinkAboutM-88-110714 CITY OF MIAMI FLORIDA INTER -OFFICE MEMORANDUM TO Honorable Mayor and Members of the City Commission FROM Cesar H. Odi �Yt City Manager I "! A4 L A. RECOMMENDATION: 047E 0 vT 2 4 1988 <<E 17 sUEUECT Resolution Authorizing Execution of Amendment No. 3 to Lease with MCA; Amendment to Lease REFERENCES lth University of Miami ENCLOSURES 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 Lease Between the City and Miami Center Associates, Ltd. ("MCA") relative to the Miami Convention Center. BACKGROUND: Pursuant to Section 1.04 of the Lease Agreement dated July 1, 1983 Between the City and the University of Miami, the University of Miami ("University") was granted an option to lease up to 6,277 net square feet of conference room space on A-3 level of the Miami Convention Center. By way of a letter to the City Manager on February 25, 1988, the University affirmatively exercised that option. As an option payment, the University pays $81.30 per square foot. The University is receiving approximately 4,000 square feet and is making one option payment of $320,972.40. The additional conference rooms then become part of the space leased by the City to the University and are subject to all terms and conditions of the original lease. The City Attorney's Office and independent counsel for the University have prepared a Lease Agreement effectuating the exercise of this option. The conference rooms subject to the University option are currently operated, managed and controlled by MCA, the Miami Convention Center Developer. Pursuant to Amendment No. 2 entered into between the City and MCA in 1987, these rooms were transferred to MCA expressly, subject and subordinate to the University option in the event the University ever exercised such option. It was agreed in Amendment No. 2 that in the event MCA had to surrender and release these rooms to the University, MCA would receive the option payment being made by the University of {mil J it orJ 8-S-1107 1 Honorable Mayor and Members of the City Commission September , 1988 Page 2 $81.30 per square foot of transferred space as consideration for 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. 2, MCA receives the option payments and transfers these conference rooms back to the City for subsequent lease to the University. CH0/yv/P991 Attachments R