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HomeMy WebLinkAboutLegislationFile Number: 08-01511 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A THIRD AMENDMENT TO LEASE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI ("CITY") AND BEASLEY-REED ACQUISITION PARTNERSHIP, A DELAWARE PARTNERSHIP ("BEASLEY-REED"), TO EXTEND IN THEIR LEASE OF APPROXIMATELY 2.2 ACRES OF THE CITY'S PROPERTY IN VIRGINIA KEY, MIAMI, FLORIDA, TO EXTEND THE COMMENCEMENT OF THE CITY'S AND BEASLEY-REED'S MUTUAL RIGHT TO TERMINATE THE LEASE FROM JUNE 3, 2009 TO JUNE 3, 2010, WITH NINETY (90) DAYS PRIOR WRITTEN NOTICE. WHEREAS, in 1982, the City of Miami ("City") advertised for and received development proposals by bid invitation for the lease of approximately three (3) acres of property owned by the City on Virginia Key, Miami, Florida, for the construction, maintenance, and operation of a broadcast tower communications facility (Premises"); and WHEREAS, the proposal presented by WKAT-Hernstadt Broadcasting Corp. was in the best interest of the public which led to a twenty-five (25) year lease agreement with the City in 1982; and WHEREAS, the City consented to an assignment and assumption of the lease by Beasley -Reed Acquisition Corporation ("Beasley -Reed"); and WHEREAS, Section 29-B of the City Charter provides that the City Commission, by a 4/5ths affirmative vote, may grant a lessee a one-time extension during the last five (5) years of its lease, without the necessity of a referendum, for the purpose of funding additional capital improvements, which extended term shall not exceed twenty five percent (25%) of the original term or ten (10) years, whichever is less; and WHEREAS, in May, 2006, the parties negotiated a lease extension calling for a six (6) year term with an initial rental increase to $150,000, annually, and with Beasley -Reed making certain capital improvements to the Premises as a condition of the extension; and WHEREAS, the City also negotiated with Beasley -Reed for a mutual right of early termination of the lease extension commencing on September 3, 2008, in light of the forthcoming Virginia Key Master Plan; and WHEREAS, due to the delays in completing said master plan, the City and Beasley -Reed ("Parties") have negotiated an extension of the Parties' mutual early termination right from a commencement of September 3, 2008 to June 3, 2009, with ninety (90) days prior written notice; and WHEREAS, due to unforeseen delays in completing said master plan, the Parties have City of Miami City Hall 3500 Pan American ' H, Drive IMA? tilt Legislation Miami, FL 33133 www.miamigov.com Resolution File Number: 08-01511 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE A THIRD AMENDMENT TO LEASE AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI ("CITY") AND BEASLEY-REED ACQUISITION PARTNERSHIP, A DELAWARE PARTNERSHIP ("BEASLEY-REED"), TO EXTEND IN THEIR LEASE OF APPROXIMATELY 2.2 ACRES OF THE CITY'S PROPERTY IN VIRGINIA KEY, MIAMI, FLORIDA, TO EXTEND THE COMMENCEMENT OF THE CITY'S AND BEASLEY-REED'S MUTUAL RIGHT TO TERMINATE THE LEASE FROM JUNE 3, 2009 TO JUNE 3, 2010, WITH NINETY (90) DAYS PRIOR WRITTEN NOTICE. WHEREAS, in 1982, the City of Miami ("City") advertised for and received development proposals by bid invitation for the lease of approximately three (3) acres of property owned by the City on Virginia Key, Miami, Florida, for the construction, maintenance, and operation of a broadcast tower communications facility (Premises"); and WHEREAS, the proposal presented by WKAT-Hernstadt Broadcasting Corp. was in the best interest of the public which led to a twenty-five (25) year lease agreement with the City in 1982; and WHEREAS, the City consented to an assignment and assumption of the lease by Beasley -Reed Acquisition Corporation ("Beasley -Reed"); and WHEREAS, Section 29-B of the City Charter provides that the City Commission, by a 4/5ths affirmative vote, may grant a lessee a one-time extension during the last five (5) years of its lease, without the necessity of a referendum, for the purpose of funding additional capital improvements, which extended term shall not exceed twenty five percent (25%) of the original term or ten (10) years, whichever is less; and WHEREAS, in May, 2006, the parties negotiated a lease extension calling for a six (6) year term with an initial rental increase to $150,000, annually, and with Beasley -Reed making certain capital improvements to the Premises as a condition of the extension; and WHEREAS, the City also negotiated with Beasley -Reed for a mutual right of early termination of the lease extension commencing on September 3, 2008, in light of the forthcoming Virginia Key Master Plan; and WHEREAS, due to the delays in completing said master plan, the City and Beasley -Reed ("Parties") have negotiated an extension of the Parties' mutual early termination right from a commencement of September 3, 2008 to June 3, 2009, with ninety (90) days prior written notice; and WHEREAS, due to unforeseen delays in completing said master plan, the Parties have File Number 08-01511 negotiated a further extension of the Parties' mutual early termination right from a commencement June 3, 2009 to June 3, 2010, with ninety (90) days prior written notice; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Manager is authorized{1} to execute a Third Amendment to Lease Agreement, in substantially the attached form, between the Parties, to extend in their lease of the Premises of the City's property in Virginia Key, Miami, Florida, the commencement of the Parties' mutual right to terminate the lease from June 3, 2009 to June 3, 2010, with ninety (90) days prior written notice. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.{2} APPROVED AS TO FORM AND CORRECTNESS: JULIE O. BRU , CITY ATTORNEY Footnotes: {1} The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. {2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.