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Resolution
City Hail
3500 Pan American
Drive
Miami, FL 33133
www.ci.miami.fl.us
File Number: 06-00870 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY
A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED
PUBLIC HEARING, AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST
AMENDMENT TO LEASE AGREEMENT ("AMENDMENT'), IN SUBSTANTIALLY
THE ATTACHED FORM, BETWEEN THE CITY OF MIAMI ("CITY") AND
BEASLEY-REED ACQUISITION PARTNERSHIP, A DELAWARE PARTNERSHIP,
FOR THEIR LEASING OF APPROXIMATELY TWO AND TWO -TENTHS (2.2)
ACRES OF THE CITY'S PROPERTY IN VIRGINIA KEY, MIAMI, FLORIDA, WITH
SAID AMENDMENT PROVIDING FOR: 1) AN EXTENSION FOR SIX ADDITIONAL
YEARS ("EXTENSION TERM") COMMENCING ON SEPTEMBER 3, 2007 AND
EXPIRING SEPTEMBER 2, 2013; 2) MUTUAL TERMINATION RIGHTS UPON
180-DAYS PRIOR WRITTEN NOTICE COMMENCING 1N THE SECOND YEAR OF
THE EXTENSION TERM; AND 3) AN INITIAL INCREASE IN RENT TO $150,000
ANNUALLY, COMMENCING SEPTEMBER 3, 2007, PLUS SALES AND USE TAX,
1F APPLICABLE.
WHEREAS, in 1982 the City of Miami ("City") advertised for and received development proposals
by bid invitation for the lease of approximately three (3) acres of property owned by the City on Virginia
Key ("Premises") for the construction maintenance and operation of a broadcast tower
communications facility; and
WHEREAS, the proposal presented by WKAT-Hernstadt Broadcasting Corp. was in the best
interest of the public which led to a twenty-five year lease agreement with the City in 1982; and
WHEREAS, the City consented to an assignment and assumption of the lease by Beasley -Reed
Acquisition Corporation ("Beasley -Reed"); and
WHEREAS, the need for use of an antennae by Beasley -Reed continues past the term of the
original lease; and
WHEREAS, Section 29-B of the City Charter provides that the City Commission, by a 4/5ths
affirmative vote, may grant a lessee a one-time extension during the last five years of its lease, without
the necessity of a referendum, for the purpose of funding additional capital improvements, which
extended term shall not exceed 25% of the original term or 10 years, whichever is less; and
WHEREAS, the parties initially commenced negotiations of the lease extension in 2004, which
negotiations were subsequently postponed in order to await the result of the Virginia Key Master Plan;
and
WHEREAS, due to the delays in completing the master plan, the parties instead negotiated a
mutual termination clause commencing in September, 2008; and
City of Miami Page 1 of 2 Printed On: 5/17/2006
File Number: 06-00870
WHEREAS, the Department of Public Facilities obtained two appraisals from Joseph Blake and
Associates and Investors Research Associates that determined the fair market rent as of September,
2004 to be $82,000 and $83,000, respectively; and
WHEREAS, the City negotiated with Beasley -Reed for an extension of the lease calling for a six
year term with an initial rental increase to $150,000 annually; and
WHEREAS, Beasley -Reed will make certain capital improvements to the Premises as a condition
of this extension;
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. By a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, the City
Manager is authorized{1} to execute a First Amendment to Lease Agreement ("Amendment"), in
substantially the attached form, between the City and Beasley -Reed, for their leasing of the Premises,
with said Amendment providing for: 1) an extension for six additional years ("extension term")
commencing on September 3, 2007 and expiring September 2, 2013; 2) mutual termination rights
upon 180-days prior written notice commencing in the second year of the extension term; and 3) an
initial increase in rent to $150,000 annually, commencing September 3, 2007, plus sales and use tax,
if applicable.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor {2}.
APPROVED AS TO FORM AND CORRECTNESS:
JORGE L. FERNANDEZ
CITY ATTORNEY
Footnotes:
{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} If 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 2 of 2 Printed On: 5/17/2006