HomeMy WebLinkAboutSummary FormDate: 4/1 0/2008
AGENDA ITEM SUMMARY` FORM
FILE ID: 0C'-CO- 72S
Requesting Department: Public Facilities /Asset Mgmt.
Commission Meeting Date: 5/08/2008 District Impacted: 2
Type: ® Resolution n Ordinance n Emergency Ordinance ❑ Discussion Item
n Other
Subject: Second 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, authorizing the City Manager to
execute a Second Amendment to Lease Agreement ("Second Amendment"), in substantially the
attached form, between the City of Miami ("City") and Beasley -Reed Acquisition Partnership, a
Delaware partnership ("Lessee"), to extend in their lease of approximately 2.2 acres (the "Premises")
of the City's property in Virginia Key, Miami, Florida, the start of the parties' mutual right to
terminate the Lease ("Termination Date") from September 3, 2008 to June 3, 2009 with 90 days
prior written notice.
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:
Final Approvals
(SIGN AND DATE)
CIP Budger,tikv.04
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Subject: Second 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 Acquisition
Partnership. 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 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 the rent will be increased by five percent (5%) annually. Either
party has the right under the lease extension to terminate the lease beginning on September 3, 2008 with
180 days prior written notice in light of the pending Master Plan for Virginia Key.
This present amendment extends to June 3, 2009, the parties' mutual right to terminate the Lease and
provides for 90 days prior written notice. As it now stands, the City's Virginia Key Master Plan has not
been finalized and will not be implemented before June 3, 2009 or 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 second amendment complies with 29-B of the City
Charter.
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