HomeMy WebLinkAboutSummary FormDate: 11/11/2008
AGENDA ITEM SUMMARY FORM
FILE ID: C% - 615 i I
Commission Meeting Date: 1/15/2008
CA. 13
Requesting Department: Public Facilities /Asset Mgmt.
District Impacted: 2
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Third Amendment to Lease Agreement with Beasley -Reed Acquisition Partnership for use of
City's propertyin n Vir ing`ia Key.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, authorizing the City Manager to
execute a Third Amendment to Lease Agreement ("Third Amendment"), in substantially the
attached form, between the City of Miami ("City"), as Lessor, and Beasley -Reed Acquisition
Partnership, a Delaware partnership ("Tenant"), to extend in their lease of approximately 2.2 acres
(the "Premises") of the City's property in Virginia Key, Miami, Florida, the commencement of the
parties' mutual right to terminate the Lease ("Termination Date") from June 3, 2009 to June 3, 2010
with ninety (90) days prior written notice.
Background Information: See attached
Budget Impact Analysis.
Yes Is this item related to revenue?
No Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
01P Project No:
No Is this it6m funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost: �f
Maintenance Cost:
Total Fiscal Impact: t
Final Approvals
,� l (SIGN AND DATE
W)'
CIP A Budget" "2�12(os
If using or receiving capital funds /
Grants U /A Risk Management
Purcha i Dept. Director c f
Chief City Manager
Subject: Third Amendment to Lease Agreement with Beasley -Reed Acquisition Partnership for use of
Cit property in Virginia Key
Background Information:
Following a solicitation for proposals for the construction, maintenance and operation of a broadcast
tower communications facility, the City entered into a lease with Hernstadt Broadcasting Corporation on
September 3, 1982, which agreement has been subsequently assigned to Beasley -Reed Acquisition
Partnership. The original lease was for a term of twenty (25) years for the leasing of approximately 2.2
acres with an easement on approximately 11.5 acres for guy wires and access. The original rent under
the lease was $45,999.36 annually, which amount has been increased by the CPI each year culminating
to a rate of $86,227.10 in 2006.
In May 2006, the City Commission, by a 4/5ths affirmative vote, granted a one-time extension of
Beasley -Reed's lease pursuant to Section 29-B of the City Charter for the purpose of funding additional
capital improvements. Beasley -Reed's lease was amended to provide for a six-year extension of the
term to expire on September 2, 2013. The annual rent during the extension period began at $150,000
and commencing September 3, 2009 the rent will be increased by five percent (5%) annually. Either
party has the right under the lease extension to terminate the lease beginning on June 3, 2009 with ninety
(90) days prior written notice in light of the pending Master Plan for Virginia Key.
This present amendment extends to June 3, 2010, the parties' mutual right to terminate the Lease and
provides for ninety (90) days prior written notice. The City's Virginia Key Master Plan has not been
finalized and will not be implemented before June 3, 2010 or ninety (90) days thereafter. Finally, the
extension of the commencement of the parties' termination right in no way extends the outside
expiration date of the Lease and therefore this third amendment complies with 29-B of the City Charter.