HomeMy WebLinkAboutM-83-040011
CITY OF MIAMI. FLORIDA
INTEROFFICE MEMORANDUM
To Honorable Mayor and Hembers OATE Play 6, 1983 RILE
of the City Commission
FROM Howard V . Gary
City Manager
(J'v
SU9.1ECT Bayside Project - Memorandum
of Cooperation with Restaurant
Associates - Committee of the
REFERENCNhole, May 12
ENCLOSURES
Restaurant Associates currently has an exclusivity clause in their
lease with the City limiting the sale of food and beverages within
Area A-1 in the Bayside Request for Proposals Area (see attached
Map) . .
In January I appointed a committee, including David Weaver and
Assistant City Manager Jim Reid, to negotiate with Restaurant
Associates for both the removal of the exclusivity clause and "Buy
Out" price to be paid if the Bayside developer is interested in
taking over the lease.
After several months of discussion, the Committee recommends that
the Citv Commission authorize me to 'prepare a Memorandum of
Cooperation between the City of Miami and Restaurant Associates
based on the following terms:
1. The City would be authorized to permit the sale of food and
beverages within the area described as A-1 in the captioned
lease in consideration for W the payment by such developer
of the sum of $750,000 in cash, plus a business interruption
fee of $170,000 to be paid in two equal annual installments
of $85,000 each payable on or before November 30, 1983 and
November 30, 1984 respectively, for the waiver of the exclu-
sivity provided under Paragraph $'of such lease, provided:
The personal liability of Restaurant Associates Industries,
Inc. and Restaurant Associates Industries of Florida, Inc.
and of its obligation to operate the business at the
premises demised under the lease with the City would be
eliminated.
The lease may be assigned or the premises subleased to any
designee of Restaurant Associates Industries, Inc.
The lease would be modified to have the City assume respon-
sibility for the landscaping and landscape maintenance
including the area immediately adjacent to the restaurant
building referred to in the lease.
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The Manager Mould permit that, in addition to a portion of
the premises being used as the Dockside Terrace Restaurant,.
any portion of the rest of the premises may be used as a
banquet facility only.
The City will install a reasonable number of directional
signs to the Dockside Terrace and Reflections on the Bay
in the public right of way areas of Biscayne Boulevard.
The City would modify the request for
the developer would include the names
age installations in said premises in
media advertising and promotions done
Center on the same basis as any other
upon the payment of the fair share of
promotion.
proposals to indicate
of the food and bever-
all printed materials,
for the Specialty
tenant in the Center,
such advertising and
2. The City is authorized to grant to any developer submitting a -
reply to the Bayside Request for Proposals an option (a) to
purchase the Restaurant Associates' lease for $2,650,000 cash
within 6 months after the selection of the developer by the
City.
3. Finally, if the developer selected by the City does not exer-
cise the option to develop in the exclusive A-1 area or "Buy
Out" the Restaurant Associates' lease, the City will pay
Restaurant Associates $85,000 on or before November 30, 1983
and $15,000 on or before November 30, 1984, as compensation
for anticipated "business interruption" during construction of
the Bayside project.
It is the City's intention to include in the RFP a requirement
that the initial $100,000, if needed, will be repaid to the
City by the Bayside developer on or before November 30, 1984.
Further, the City will contract for two independent appraisals
to evaluate the three proposed changes in the Restaurant Asso-
ciates lease specified under item,(1) and to determine if,
based on the anticipated construction impacts, a business inter-
ruption fee exceeding initial $100,000 should be paid by the
City on or before November 30, 1984. In our judgment a higher
value for business interruption costs is unlikely.
Mr. Weaver and I believe that the removal of the exclusivity in
the A-1 area greatly enhances the chances for a successful
Bayside project and provides needed design options to potential
developers. I, therefore, recommend that the City Commission
authorize me to prepare a Memorandum of Cooperation along these
lines so that an amendment can be made to the Bayside Request
for Proposals which proffers these additional terms and conditions.
Restaurant Associates has provided a letter of intent basically
agreeing to these conditions. A formal agreement between Res-
taurant Associates and the City of Miami would be brought before
the City Commission for approval as soon as possible.
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