HomeMy WebLinkAboutSUMMARY FORMC1'
0� " �;_ AGENDA ITEM SUMMARY FORM
FILE ID: /0 -00q (,5
Date: 3/16/2010 Requesting Department: Public Facilities /Asset Mgjmt.
Commission Meeting Date: 9/16/2010 District Impacted: 2
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance E] Discussion
Department
Discussion Item Matter ID Department
nt
❑ 10-
Other 1124
Subject: Fourth Amendment to Lease Agreement with Beaslev-Reed Acquisition Partnership for use of
City's property in Virginia Key.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, authorizing the City Manager to
execute a Fourth 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 (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, 2010 to June 3, 2011 with ninety (90) days prior written notice.
Background Information: See attached
BudLxet 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: _0
Final A -rov
a
ls /
SIGN AND DATE /
CIP N/A Budget
If usinl- or receiving capital funds
Grants N/A Risk Management
Purchasing N/A Dept. Directors
Chief Manager—
-_ 1 _Pn
Subject: Fourth Amendment to Lease Agreement with Beaslev-Reed Acquisition Partnership for use of
City's 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, and every year thereafter, the rent will be increased by five percent
(5%) annually. The current annual rent is $158,156. Either party has the right under the lease extension
to terminate the lease beginning on June 3, 2010 with ninety (90) days prior written notice in light of the
pending Master Plan for Virginia Key.
This present amendment extends to June 3, 2011, 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 it is estimated that it will not be implemented before June 3, 2011 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. The City Manager is authorized to execute any further amendments to the
commencement date of the parties mutual right to terminate the lease as necessary.. but in no event shall
such date be later than September 2, 2013.