HomeMy WebLinkAboutSummary Form'~'h AGENDA ITEM SUMMARY FORM
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FILE ID: —moi 1
Date: 3/03/09 Requesting Department: Public Facilitie Law Department
Commission Meeting Date: 3/ 12 /09 District Impacted: 2 Matter ID No.
Type: M Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item —082758
❑ Other
Subject: Execute First Amendment to Lease Agreement with Rickcnbacker Marina, Inc.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments; authorizing the City Manager to
execute of a First Amendment to the Lease Agreement ("Amendment"), in substantially the attached
form, between the City of Miami and Rickenbacker Marina, Inc. ("Rickcnbacker") to provide for an
extension of the term; an increase in rent; and completion of capital improvements to be made by
Rickenbacker, at its sole cost and expense, with terms and conditions as more particularly set forth in
the Amendment.
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:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $360,000
Final Annrovals
/ (SIGN AND DATE)
CIP /V { Budget
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Background Information:
Rickenbacker Marina, Inc. ("Rickenbacker") requested that the City extend its lease for a term of seven
and one-half (7'/2) years which original lease term expired January 7, 2009, in order to recoup certain
capital improvements it plans to make to the property located at 3301 Rickenbacker Causeway, Miami,
Florida. On December 11, 2008, the City Commission, by a four fifths (4/5ths) affirmative vote,
authorized an extension of the term of the Lease not to exceed seven and one-half (7'/2) years, subject to
certain requirements to be negotiated in the amendment with said negotiated amendment to be brought
back for City Commission approval on or before March 12, 2009. The City obtained an appraisal for
said uses and has negotiated an agreement for City Commission approval based on fair market rent. The
terms for continued use of the property are as follows: (1) a term of seven and one-half (7%2) years, for
wet storage facilities including moorings, restaurant, fuel facilities, and other related services, to expire
on July 7, 2016; (2) a term of four and one-half (4'/2) years for dry storage facilities, to expire on July 7,
2013 with three one-year options to renew, subject to approval of the City Manager, at his sole
discretion; (3) base rent to increase to greater of $360,000 annually or $30,000 monthly plus state use
tax, if applicable, or percentage rent to increase for wet slip facilities and moorings to 15% of gross
revenues, dry slip facilities to 12% of gross revenues, with 1% increase in each option year thereafter,
fuel facilities to 5% of gross revenues, and all other related services to 5% of gross revenues; and (4)
construction of capital improvements by Rickenbacker, at its sole cost, with a cost to be not less than
$1,300,000 including soft costs, with said capital improvements to begin by no later than April 1, 2009,
and be completed by later than March 31, 2011, and with terms and conditions as more particularly set
forth in the Amendment.
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