HomeMy WebLinkAboutSummary FormDate: 1/10/2007
AGENDA ITEM SUMMARY FORM
FILE ID: 0 6 -02a 67
Requesting Department: Public FaeliileAN 12I 10S
Commission Meeting Date: 2/08/2007 District Impacted: 2
Type: ® Resolution ❑ Ordinance U lmergency Ordinance ❑ Discussion Item
Subject: Amendment No. 4 to Lease Agreement with New Spanish Concepts, LLC
Purpose of Item:
A Resolution authorizing the City Manager to execute Amendment No. 4 ("Agreement") to the Lease
Agreement, as assigned and amended, between the City of Miami ("City"), and New Spanish
Concepts, LLC ("Tenant"), in substantially the attached form, in connection with its use of the
property located at 1000 South Miami Avenue, to provide for: (1) an 18-month deferment of
minimum annual rent and annual percentage (collectively, the "Deferred Rent") due and payable
retroactive from June 1, 2006 to November 30, 2007 ("the Deferral Period"); (2) calculation of
interest on the Deferred Rent at the rate of seven percent (7%) per annum; (3) payment of the
Deferred Rent inclusive of interest and taxes on or before February 28, 2013, provided, however, if
gross sales for the calendar year of January 1, 2012 through December 31, 2012 are in excess of
$3,500,000, said Deferred Rent including interest shall become an abatement; (4) failure to pay in full
the Deferred Rent inclusive of any interest due and taxes on or before February 28, 2013 shall result
in a default of the Lease Agreement; (5) closure of the Premises for a period not to exceed six (6)
months from the date of execution of this Amendment No. 4 to provide for the implementation of a
new restaurant concept; and (6) future temporary closures necessary to make renovations,
improvements or alterations in connection with any future change of concept.
Background Information:
See attached.
Budget Impact Analysis
NO 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:
CJP Project No:
NO is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
(SIGN AND DATE)
CIP jl! li Bud et
If using or receiving capital funds r..
Grants A Risk Management
Purchasing Dept. Director
Chief %� City Manager
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AGENDA ITEM SUMMARY FORM
Subject: Amendment No. 4 to Lease Agreement with New Spanish Concepts, LLC
Background Information:
On May 16, 2002, the City Commission adopted Resolution No. 02-582 authorizing 1) the assignment
of the lease rights under the Agreement with Firehouse IV of Miami, Inc, to New Spanish Concepts,
LLC ("Tenant") for leasing, management and operation of a restaurant on City -owned property
located at 1000 South Miami Avenue, Miami, Florida. The Lease Agreement has an original term of
fifteen (15) years with an option to extend for two (2) additional five year periods. The original term
expires on March 2, 2013. As part of the conditions for the assignment, Tenant agreed to make
certain additional leasehold improvements to the property of no less than $300,000. Tenant
completed the improvements as required under the assignment which exceeded the $300,000
investment by $1,147,600, or $ 1 ,447,600. Tenant is now requesting that the City grant it a rent
deferment that will enable it to implement a new operational concept to improve its operations. Due
to unforeseen conditions involving the management and operation of the property, the parties agree it
is in the best interest of the City to grant this deferral subject to certain provisions mentioned above.
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