HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM Law Department
Matter ID No.
FILE ID: Q 08-2464
P
Date: 10/01/09 Requesting Department: Public Facilities/Asset Mg_mt
Commission Meeting Date: 10/08/2009 District Impacted: 2
Type: x Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Execute Amendment No. 3 to Lease Agreement with Biscayney Restaurant, d/b/a Rusty
Pelican
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, authorizing execution of an
Amendment No. 3 ("Amendment"), in substantially the attached form, to the Lease Agreement
between the City of Miami and Biscayne Bay Restaurant (d/b/a Rusty Pelican) to provide for: (1) an
extension of the base term to expire on October 1, 2027 with two five-year options to renew,
commencing on the effective date of the amendment; (2) base rent to increase to $360,000 annually,
commencing on the execution date of the amendment; (3) percentage rent to increase upon the earlier
of: (i) completion of phase I of the required capital improvements or (ii) 24 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% thereafter during any renewal periods; (4)
construction of capital improvements by Lessee, at its sole cost, with a cost to be not less than
$3,000,000 including soft costs; and (5) a contribution of $4,000,000 toward cost of construction of a
new parking facility, 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
o:NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact: $360,000
Final Approvals
(SIGN AND DATE)
CIP A Budget_
If using or receiving capital funds
Grants d1n Risk Management
Purcha 'n(,) .l} Dept. Director
Chief City Manager
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Subject: Execute Amendment No. 3 to Lease Agreement with Biscayne Bay Restaurant, d/b/a Rusty
Pelican
Background Information:
On July 24, 2003, the City Commission authorized submission for consideration by the electorate a
ballot question to amend Section 29-B of the City Charter to authorize the City Commission to amend
the Lease with Biscayne Bay Restaurant, Inc. d/b/a Rusty Pelican, to extend the original expiration
date, which currently expires October 1, 2012, and increase the minimum guaranteed rent to the City.
The electorate approved the proposed extension and modification to the Lease on November 4, 2003.
The attached amendment incorporates the lease extension with an arrangement with Lessee that
Lessee will seek to obtain a finding of compliance with the deed restriction or a waiver of compliance
with the deed restriction from the State of Florida Board of Trustees of the Internal Improvement
Trust Fund. Lessee shall construct required capital improvements at a cost of not less than
$3,000,000, including soft costs. The required capital improvements shall be completed in three
phases. Phase I and phase II, shall include construction of a Vista Point at the north end of the
Property, expanding the restaurant to provide at least 4,500 square feet of additional banquet space,
making certain interior and exterior improvements, constructing a public baywalk, and reconfiguring
the existing parking lot. During phase II, Lessee shall complete extension of the public baywalk
around the building. The City has agreed to provide offsite parking at Marine Stadium and
Rickenbacker Marina for Lessee until phase II is completed. Lessee has agreed to make a $4,000,000
contribution toward the construction of a City -owned parking garage which may be designed and
constructed and by Department of Offstreet Parking (MPA) or a third party. The City intends to
assign all its rights and obligations including the right to receive Lessee's construction contribution to
MPA. It should be noted that the lease amendment provides for Lessee to use its best efforts to
obtain the required permits to construct the pedestrian walkway. If after using its best efforts, Lessee
cannot obtain the required permits within 24 months after the effective date of the Amendment,
including delays such as force majeure, the extension of the term of the Lease will automatically be
void and of no further force and effect and the Lease will expire on October 1, 2012.
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