HomeMy WebLinkAboutSummary Fact Sheet SUBAGENDA ITEM SUMMARY FORM
FILE ID:
Date: 5/23/2006
Requesting Department: Public Facilities
Commission Meeting Date: 5/25/2006 District Impacted: n/a
Type: Fl Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: First Amendment to Lease Agreement with Beasley -Reed Acquisition Partnership for use of
City's property in Virginia Key.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, by a 4/5ths vote of the City
Commission, 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 ("Lessee"), for their leasing of
approximately 2.2 acres (the "Premises") of the City's property in Virginia Key, Miami, Florida.
The Amendment will provide 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.
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:
If using or receiving capital funds
Grants v° jtA
Purchasing NI A
Chief
Final Approvals
(SIGN AND DATE)
Budget E .t-. ;;-4. r`?#,
Risk Management
Dept. Direct2C`
City Manager
/.
THIS DOCAJMENT !S A SUBSTITUTION TO
ORIGINAL B CK P40 ORR3INAL CAN B
Subject: First Amendment to Lease Agreement with Beasley -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. The original
lease was for a term of 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 for a current rent of $86,227.10.
Beasley is currently looking for alternative sites in which to relocate. At this time, they are seeking an
extension of their lease. Pursuant to Section 29-B of the City Charter, 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. The
extended term shall not exceed 25% of the original term or 10 years, whichever is less. The granting of
such extension is subject to the lessee paying fair market rent as determined by the City at the time of
such extension and not being in default of its lease nor in arrearage of any monies due the City.
We initially commenced negotiations of a lease extension in 2004. These negotiations were
subsequently postponed in order to await the result of the Virginia Key master plan. At this time, in lieu
of waiting for such results, we have instead negotiated a mutual termination clause commencing in
2008.
Based on the foregoing, 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 was $82,000 and $83,000 respectively. The City has subsequently negotiated an amendment to
their lease to provide for: (1) a six -year extension of the term to expire on September 2, 2013; (2) either
party shall have the right to terminate the lease during the second year of the Additional Term; and (3)
an initial increase in rent to $150,000/yr commencing September 3, 2007. Commencing September 3,
2009, the rental shall be increased each by five percent (5%). Additionally, Beasley will be undertaking
$50,000 in capital improvements to the broadcast tower, its ancillary equipment, and Premises by
September 2, 2009, including but not limited to, replacement of the generator fuel cell, re -setting of
posts, backfilling the tower base to protect pier and ground system, painting outside of the building, and
performing any emergency repairs caused by natural elements such as hurricanes, and by September 2,
2010 an additional $50,000 in capital improvements, including but not limited, the replacement of the
antennae's main generator.
THIS DOCUMENT IS A SUBSTITUTION TO
ORIGINAL BA( P. ORIGINAL CAN BE
SEEN AT END OF _ THIS IS DOCUMENT
Paae 2 of 2
Comm
Type:
AGENDA ITEM SUMMARY FORM
FILE ID: 0 6 60 t)-7 0
PH.3
Requesting Department: Publiithictitirs 9 PM 12 10
ion Meeting Date: 5/25/2006 District Impacted: nla
esolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
Dot
Subject: First A
dment to Lease Agreement with Heasley -Reed Acquisition Partnership for use of
City'sproperty in VI •inia Key.
Purpose of Item:
A Resolution of the Mia
Commission, authorizing the
("Amendment"), in substantia
Beasley -Reed Acquisition Partn
approximately 2.2 acres (the "Preen
The Amendment will provide for:
commencing on September 3, 2007 an
upon 180-days prior written notice comme
initial increase in rent to $150,000 annually,
if applicable.
Background Information: See attached
Yes
No
City Commission, with attachments, by a 4/5ths vote of the City
ity Manager to execute a First Amendment to Lease Agreement
the attached form, between the City of Miami ("City") and
hip, a Delaware partnership ("Lessee"), for their leasing of
es") of the City's property in Virginia Key, Miami, Florida.
an extension for six additional years ("Extension Term")
xpiring September 2, 2013; 2) mutual termination rights
ing in the second year of the Extension Term; and 3) an
mmencing September 3, 2007, plus sales and use tax,
Budget Impact A lysis.
Is this item related to revenue?
Is this item an expenditure? If so, please identify fu ing source below.
General Account No;
Special Revenue Account No:
CIP Project No:
No Is this item funded by Homeland Defense/Neighborhood Im ovement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP N�
Final Approvals
(SIGN AND DATEI
Budge,
Risk Managem
Dept. Director
If using or receiving capital funds
Grants N
Chief City Manager
n
Subj t: First Amendment to Lease Agreement with Beasley -Reed Acquisition Partnership for use of
Cit 's ert in Vir inia Ke
Backgroun iformation:
Following a solicit, 'on for proposals for the construction, maintenance and operation of a broadcast
tower communication facility, the City entered into a lease with Hernstadt Broadcasting Corporation on
September 3, 1982, w . h agreement has been subsequently assigned to Beasley -Reed. The original
lease was for a term o 5 years for the leasing of approximately 2.2 acres with an easement on
approximately 11.5 acres ► guy wires and access. The original rent under the lease was $45,999.36
annually, which amount has b -n increased by the CPI each year for a current rent of $86,227.10.
Beasley is currently looking for < ernative sites in which to relocate. At this time, they are seeking an
extension of their lease. Pursuant t• ection 29-B of the City Charter, the City Commission, by a 415ths
affirmative vote, may grant a lessee one-time extension during the last five years of its lease, without
the necessity of a referendum, for tl purpose of funding additional capital improvements. The
extended term shall not exceed 25% of th, original term or 10 years, whichever is less. The granting of
such extension is subject to the lessee payi fair market rent as determined by the City at the time of
such extension and not being in default of its se nor in arrearage of any monies due the City.
We initially commenced negotiations of a 1- e extension in 2004. These negotiations were
subsequently postponed in order to await the result . the Virginia Key master plan. At this time, in lieu
of waiting for such results, we have instead negoti. -d a mutual termination clause commencing in
2008.
Based on the foregoing, the Department of Public Facilitie •btained two appraisals from Joseph Blake
and Associates and Investors Research Associates that detern led the fair market rent as of September,
2004 was $82,000 and $83,000 respectively. The City has su .equently negotiated an amendment to
their lease to provide for: (1.) a six -year extension of the term to e •ire on September 2, 2013; (2) either
party shall have the right to terminate the lease during the second zr of the Additional Term; and (3)
an initial increase in rent to $150,000/yr commencing September 3, 07. Commencing September 3,
2009, the rental shall be increased each by five percent (5%). Addition] , Beasley will be undertaking
capital improvements to the broadcast tower, its ancillary equipment, a Premises by September 2,
2009 which improvements shall include but are not limited to the folio ing: replacement of the
generator fuel cell, re -setting of posts, backfilling the tower base to protec ier and ground system,
painting outside of the building, and performing any emergency repairs caused natural elements such
as hurricanes.
SU = STIT'UTED
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