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HomeMy WebLinkAboutR-09-0482Y°p City of Miami City Hall 3500 Pan American Drive Miami, FL 33133 Legislation www.miamigov.com RSO Resolution: R-09-0482 File Number: 09-01004 Final Action Date: 10/8/2009 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE LEASE AGREEMENT BETWEEN THE CITY OF MIAMI ("CITY") AND BISCAYNE BAY RESTAURANT CORPORATION (D/B/A RUSTY PELICAN) ("LESSEE"), IN SUBSTANTIALLY THE ATTACHED FORM, ("AMENDMENT"), TO PROVIDE FOR: (1) AN EXTENSION OF THE BASE TERM TO EXPIRE ON OCTOBER 1, 2027 WITH TWO (2) FIVE-YEAR OPTIONS TO RENEW, COMMENCING ON THE EFFECTIVE DATE OF THE AMENDMENT; (2) AN INCREASE IN BASE RENT FROM $48,000 TO $360,000 ANNUALLY, COMMENCING ON THE EXECUTION DATE OF THE AMENDMENT; (3) AN INCREASE IN PERCENTAGE RENT UPON THE EARLIER OF (I) COMPLETION OF THE PHASE I REQUIRED CAPITAL IMPROVEMENTS OR (II) TWENTY-FOUR MONTHS AFTER ISSUANCE OF THE FIRST BUILDING PERMIT FOR PHASE I, TO 7% OF GROSS REVENUES FROM $0 - $12,000,000 ANNUALLY, 8% OF GROSS REVENUES OVER $12,000,000 ANNUALLY, AND 8.5% OF GROSS REVENUES ANNUALLY THEREAFTER DURING ANY RENEWAL PERIODS; (4) LESSEE'S CONSTRUCTION OF CERTAIN CAPITAL IMPROVEMENTS, AT A COST OF NOT LESS THAN $3,000,000 INCLUDING SOFT COSTS; (5) LESSEE'S CONTRIBUTION OF $4,000,000 TOWARD THE COST OF CONSTRUCTION OF A NEW PARKING FACILITY; (6) THE CITY'S RIGHT TO ASSIGN ALL OF ITS RIGHTS AND OBLIGATIONS RELATING TO THE CONSTRUCTION OF THE NEW PARKING FACILITY TO THE DEPARTMENT OF OFF-STREET PARKING ("MPA"); INCLUDING THE RIGHT TO RECEIVE LESSEE'S CONSTRUCTION CONTRIBUTION AND LESSEE'S CONSENT TO SAID ASSIGNMENT UPON MPA'S ASSUMPTION THEREOF, ALL AS MORE PARTICULARLY SET FORTH IN THE AMENDMENT; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE OTHER DOCUMENTS AS MAY BE REQUIRED TO IMPLEMENT THE AMENDMENT. WHEREAS, the City of Miami ("City") and Biscayne Bay Restaurant ("Lessee") entered into a Lease Agreement dated February 13, 1970 (the "1970 Lease Agreement") whereby the City leased to Lessee the City -owned property located at approximately 3201 Rickenbacker Causeway, Miami, Florida (the "Property"), for the development and operation of a first class waterfront restaurant now known as the Rusty Pelican Restaurant (the "Rusty Pelican"); and WHEREAS, the 1970 Lease Agreement has been amended by Supplemental Lease Agreement dated July 23, 1970, Amendment No. 1 to Lease Agreement dated May 28, 1982, City of Miand Page I of 3 File Id. 09-01004 (Version: 1) Printed On: 7/3/2017 File Number: 09-01004 Enactment Number: R-09-0482 undated Addendum to Lease Agreement authorized by Resolution No. 89-508 adopted by the City Commission on June 7, 1989, and Amendment to Lease Agreement dated December 18, 2001 (collectively the "Lease"); and WHEREAS, the term of the Lease, together with the options to renew, expires on October 1, 2012; and WHEREAS, Lessee requested the City to extend the term of the Lease in order to amortize the cost of certain capital improvements that the Lessee plans to perform on the Property; and WHEREAS, on July 24, 2003, the City Commission authorized the submission for consideration by the electorate of the City, of a ballot question to amend Section 29-B of the City Charter to authorize the City Commission to amend the Lease to extend the Original Expiration Date and increase the minimum guarantee to the City; and WHEREAS, on a special municipal election held on November 4, 2003 the electorate of the City approved the proposed extension and modification of the Lease; 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 Amendment No. 3, in substantially the attached form, to the Lease between the City and Lessee, to provide for: (1) an extension of the base term to expire on October 1, 2027 with two (2) five-year options to renew, commencing on the effective date of the Amendment; (2) an increase in base rent from $48,000 to $360,000 annually, commencing on the execution date of the Amendment; (3) an increase in percentage rent upon the earlier of: (i) completion of Phase 1 of the required capital improvements or (ii) twenty-four months after issuance of the first building permit for Phase 1, to 7% of gross revenues from $0 - $12,000,000 annually, 8% of gross revenues over $12,000,000 annually, and 8.5% of gross revenues annually thereafter during any renewal periods; (4) Lessee's construction of certain capital improvements at a cost of not less than $3,000,000 including soft costs, (5) Lessee's contribution of $4,000,000 toward the cost of construction of a new parking facility, and (6) the City's right to assign all of its rights and obligations relating to the construction of the new parking facility to the Department of Off -Street Parking ("MPA"), including the right to receive Lessee's construction contribution and Lessee's consent to said assignment upon MPA's assumption thereof, all as more particularly set forth in the Amendment. Section 3. The City Manager is further authorized{1} to execute the Amendment and such other documents as may be required implement the Amendment. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. {2} City of Miand Page 2 of 3 File Id. 09-01004 Mersion: 1) Printed On: 7/3/2017 File Number: 09-01004 Footnotes: Enactment Number: R-09-0482 (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)lf 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. City of Miami Page 3 of 3 File Id. 09-01004 (Version: 1) Panted On: 7/3/2017