HomeMy WebLinkAboutR-88-0783I It
J-•8-659
9/8/88
RESOLUTION NO. 88-783
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO ABATE RENT PAYMENTS FROM GROVE KEY
MARINA, INC., FOR REPAIRS DUE TO ORDINARY
NEAR AND TEAR, TO THE TWO EXISTING HANGARS
ON ITS LEASED PREMISES IN AN AMOUNT NOT TO
EXCEED $360,000 WITHIN A TEN (10) YEAR
PERIOD, INTEREST FREE, AFTER PAYMENT OF
THE ANNUAL MINIMUM RENT GUARANTEE PURSUANT
TO THE LEASE AGREEMENT DATED APRIL 1, 1976
AND SUBSEQUENT AMENDMENTS, AND FURTHER
AUTHORIZING THE CITY MANAGER TO EXECUTE A
COLLATERAL ASSIGNMENT IN A FORM ACCEPTABLE
TO THE CITY ATTORNEY, BETWEEN GROVE KEY
MARINA, INC. AND THE COCONUT GROVE BANK,
PURSUANT TO THE LEASE AGREEMENT DATED
APRIL 1, 1976 AND SUBSEQUENT AMENDMENTS;
FURTHER IMPOSING A REQUIREMENT THAT THE
CITY BE NOTIFIED MONTHLY BY THE BANK OF
LOAN PAYMENTS MADE BY THE LESSEE DURING
THE LOAN PERIOD.
WHEREAS, the City of Miami leased certain City owned real
estate, which included two (2) existing hangars built in 1937, to
Grove Key Marina, Inc., pursuant to an agreement dated
April 1, 1976, which has been subsequently amended; and
WHEREAS, the said lease agreement and subsequent amendswnts
are expected to be in full force until their expiration on
June 22, 2012; and
WHEREAS, pursuant to Section 12 of the lease agreement,
dated April 1, 1976, Grove Key Marina Inc., is not responsible
for deterioration due to the existing hangars on the leased
premises due to ordinary wear and tear; and
WHEREAS, the City of Miami has assumed responsibility in the
past for limited repairs to the existing hangars on the leased
premises due to ordinary wear and tear; and
WHEREAS, Grove Key Marina, Inc., has requested substantial
repairs to the existing hangars, in an amount not to exceed
$360,000, as illustrated in Exhibit one (1) attached hereto; and
WHEREAS, the City of Miami is agreeable to pay for such
repairs, in the form of rent abatements, within a ten year
period, interest free, after Grove Key Marina, Inc., pays the
ATTACHMENTS
CONTAINED
MEMO OP
W Y�
T V
_ annual minimum rent guarantee prescribed by the referenced lease
agreement and subsequent amendments; and
WHEREAS, Grove Key Marina, Inc., has obtained a loan
commitment from the Coconut Grove Bank in order to make these
repairs; and
WHEREAS, the Coconut Grove Bank has requested a collateral
assignment of Grove Rey Marina, Inc.'s, leasehold interest
pursuant to Section 14 of the lease agreement dated
April 1, 1976;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
abate rent payments from Grove Key Marina, Inc., for repairs due
to ordinary wear and tear to the two existing hangars on its
leased premises in an amount not to exceed $360,000 in a ten year
period, interest free, after the annual minimum rent guarantee
has been paid as prescribed by the lease agreement, dated
April 1, 1976, and subsequent amendments. The herein
authorization is conditioned upon the City's monthly receipt of
statements from the below -named bank reflecting payments made by
Grove Key Marina, Inc.
Section 2. The City Manager is hereby authorized to
execute a collateral assignment of Grove Key Marina, Inc.'s.,
leasehold interest to Coconut Grove Bank, in a form acceptable to
the City Attorney, said bank to deliver a monthly statement of
loan payments made by Grove Key Marina, Inc., during the loan
period.
PASSED AND ADOPTED this 8th day of September , 1988.
A *HIRAI.
"
XAVIER L. SU , MAYOR
MA CITY CLERK
PREPARED AND APPROVED BY: APPROVED AS TO FORM AND
CORRECTURBS:
eeo �r_
RO ERT F. CLERK JOft= L
CHIEF DEPUTY CITY ATTORNEY CITY ATTORNEY
RFCsAhtbsstM751
M.
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GROVE KEY MARINA INC.
3300 PAN AMERICAN DRIVE, DINNER KEY. MIAM1. FLORIDA 33133
OFMIL 43ON 8994M27 OOCKMASTER: (Mil 004-IM CAS E: OC[ANET
EXHIBIT I
$ Item
323,200- H.H. Robertson Company:
Remove existing "RPM" roofing and siding,
dispose of same, and replace with "Versicor"
roofing and siding (same colors as now).
Price includes labor, materials and sales tax.
3,450 Performance Bond on H.H. Robertson
(if required by City or Bank)
1,500 City of Miami: building permit (square footage)
28,800 Replace bottoms and tops of 48 steel rolling doors
Per door, is follows:
100. steel plate & channels, incl. cutting
400. labor: welder @ $38.00/hr
helper @ 12.00/hr
8 hours @ 50.00 = $400/day
ld i i 1 d
3,050
S 360,000
TOTAL
50. we ng equ pment rents / ay
50. misc: welding rods, oxyacet, paint
sb� per day, est. one day per door
600 x 48 doors 28,800
RAserve for contingencies (less than 10)
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'14
TO Honorable Mayor and
Members of the City
Commission
FROM
Cesar H. Odi 1
City Manager
RECOMMENDATIONS
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
DATE: J U l togq FILE:
SUBJECT Resolution Authorizing
Rent Abatement and
Execution of Collateral
Assignment
REFERENCES:
ENCLOSURES:
IL is respectfully recommended that Grove Key Marina, Inc. be
granted the rent abatement requested in order to complete the
necessary repairs to the two hangars on the leased premises.
Additionally it is recommended that the City Manager be allowed
to execute a collateral assignment, acceptable to the City
Attorney, as required by Coconut Grove Bank.
BACKGROUND
On April 1, 1976 the City of Miami entered into a lease agreement
with Grove Key Marina, Inc. for a marina operation, as well as
other related uses, on certain City owned real estate improved
with two steel hangars. The expiration date of this lease
agreement, including subsequent amendments, is June 22, 2012.
The leased agreement pursuant to Section 12 Maintenance of
Demised Premises and Janitorial Services, makes the City
responsible for repairs to the steel hangars due to ordinary wear
and tear.
On June 1, 1988, Spencer Meredith, President, Grove Key Marina,
Inc. made a request for .the City of Miami to make repairs to the
hangars. Grove Key Marina, Inc. has obtained a loan commitment
from Coconut Grove Bank in order to pay*for all necessary repairs
to the hangars. Grove Key Marina, Inc. proposes that the City of
Miami grant an abatement of rent over a ten year period not to
exceed $360,000, excluding any and all related interest, after
payment of the annual minimum rent guarantee in order to service
its debt with Coconut Grove Bank. Coconut Grove Bank has
requested a collateral assignment as a condition of the loan to
Grove Key Marina, Inc., pursuant to Section 14 Assignment asd
Subletting of Premises.
Yj
Grove Key Marina has been an outstanding tenant of the City 4+`°
Miami. Compliance with the terms and conditions of the 1ra,.;
agreement has been optimal. Business developmmt
revenues to the City of Miami have been impressive. 211 � _x
audited year revenues to the City have totaled $24&1600 }
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