HomeMy WebLinkAboutPre-AttachmentJHri-12-2807 10; 36 Fr om: CIT'' CLERK 7858.581610 To: 305 416 2156
PROPOSED TERMS FOR AMENDMENT NO. 2 EXHIBIT I
TO THE LEASE AGREEMENT BETWEEN THE
CITY OF MIAMI AND FIREHOUSE IV OF MIAMI, INC.
1) Amend the definition of "Restaurant Operations" to read as follows:
"Kestaurunt Operations" means all services associated with the preparation, service and
sale of food and beverages, including alcoholic beverages, delicatessen, bakery, cafes tea
rooms entertainment (excluding adult entertainment)., private banquets, catering, parties,
cigar smoking, art shows, happy hour, and such other activities ancillary to the sale of
food and beverage including sales of merchandise related to the business conducted on
the Premises including the sale of food items such as.meat seafood, produce candy and
ice cream, newsstands, : tale of- flowers, and .sale . of . specialty cookware china and
crockery. •
2) The Minimum Annual Rent for the initial lease term shall remain the same,
• Commencing, with least year 5 (March, 2003), the percentage would be reduced from
11% to 6.5%. The breakpoint will not increase in year 7 as originally stated in the lease
and will remain at $2,4011,000 for lease years 7 through 9. Thereafter, the breakpoint
shall be adjusted every 3 years by 9% in keeping with the current escalations. Below is a
table outlining the proposed rent during the initial lease term:
LEASE
YEAR
(column 1)
MIMINUM
ANNUAL RENT
(column 2)
ANNUAL
PERCENTAGE RENT
(column 3),
BREAKPOINT
(column 4�
1 ;
$ 57,37S"
•Ius 11%over
$2,200,000
$2,200,000
2
$ 76,500
. fuss 1 1 % aver
3
$ 76,500
.lus 1 1 % over
$2,200,000
4
$ 83,385
plus 1 1% over
$2,400,000
5
$ R3,385
plus 6.5% over
$2,400,Q00
r6
$ 83,385
p_lus 6.5% over
$2,400,000
7
$ 90,890
' 1us 6.5% over
$2,400,000
8
$ 90,890
plus 6.5% over
$2,400,000
$2,400,000
9
$ 90,890
•lus 6.5% over
10
$ 99,896
plus 6.5% over
$2,600,000 -
$2,600,000
11
$ 99,896
.plus 6,5"/0 over
'12
$ 99,896
�;
plus 6.5% over
$2,600,000
13
-$I07,896
plus 6.5% over
$2,850,000
14
$107;896
plus 6.5"%o over
$2,850,000
15
$107,896
plus 6.5% over
$2,850,000
02- 582
JH0-12-2007 10: 1'8 Fr yarn: CIT',' CLERK 3058581610 To: 305 416 2155
3) In lieu of having the property reappraised for purposes of establishing rent for the
renewal options, the following is the proposed rent for the renewal terms;
LEASE
YEAR
Scolumn 1)
16
17
18
19
20.
21
22
23
24
25
MIMINTJM ANNUAL BREAKPOINT
ANNUAL RENT PERCENTAGE RENT
(column 2) (column 3) ,column 4)
$132,607 plus 7.0% over $3 100 000
$ 132,607 plus 7.0% over $3,100,000
$132,607 , el us 7.0% over $3,100 000
$143,192 plus 7.0% over $3,350,000
$143,192 plus 7.0% over $3,350,000
$143,192 plus 7.0% over $3,350,000
$154,729 plus 7.0% over $3,650,Q00
$154,729 plus 7,0% over $3,650,000
$154,729. - ,plus 7.0% over $3,650,000
$167,305 jlus 7 A% over $4,000,000
4) Lessee shall expend no less than $300,000 to remodel and upgrade the kitchen, provide
new kitchen equipment, new restaurant furnishings and fixtures, update interior finishes,
paint the entire exterior of the building, and constrict a new storefront on the northern
face of the building to create a pcdestrian.friendly coffee bar arca, Lessee shall submit
• the proposed plans for these improvements to the City Manager for his review and
approval. Lessee shall comply with. all laws associated with construction of the
improvements including, but not limited to, any requirements that may be imposed by the
Historic and Environmental Preservation Board. Lessee shall provide a performance
bond, letter of credit or other form of security acceptable to the City Manager,
guaranteeing the performance of these •improvements, The contractor(s) performing
these improvements shall be required to provide insurance in the amounts and types as
may be required by the City of Miami's Risk Management Department.
5) The City will permit the premises, to be closed for operation for six months from the date
of execution of Amendment No. 2 for, the renovation of the property. This six month
period may be extended up to an additional six months if construction and renovations
are not completed due to reations beyond Lessee's control,
6) The Minimum Annual Rent for the first six (6) months following execution of
Amendment No. 2 in the amount of forty-onethousand six hundred ninety-two dollars
50/100 ($41,692.50). shall be abated in consideration of the, additional leasehold
improvements being made by Lessee. Lessee shall remain liable for any Florida State
Use Tax that may due on said abated amount,
7) Section 10.1(a) shall be amended to permit the Lessee to .sublease up to 40% of the total
square footage of the building situated on the Premises,
02— 5822