HomeMy WebLinkAboutSummary FormCITY OF MIAMI
OFFICE OF TIIE CITY ATTORNEY
MEMORANDUM
TO: Honorable Mayor and Members of the City Co mission
FROM: Julie O. Bru, City Attorney v.13
DATE: January 25, 2011
RE: Proposed Resolution for the City Commission Meeting — February 10, 2011
Columbus Properties, Inc. v. City of Miami
Case No.: 10-40654 CA 05
File No.: 10-01433
The attached proposed Resolution seeks authorization to accept the settlement in
substantially the attached form, in an amount not to exceed one hundred ninety-five thousand
dollars and 00/100 ($195,000.00), for settlement of all claims of Columbus Properties, Inc,
("Columbus Properties") against the City of Miami ("City"), as it relates to a lawsuit filed in the
Circuit Court of the Eleventh Judicial Circuit, in and for Miami -Dade County, Florida, Case No.:
10-40654 CA 05, concerning a lease agreement between Columbus Properties and the City of
Miami on behalf and for the benefit of the Civilian Investigative Panel.
Pursuant to Resolution No. 03-006, adopted January 9, 2003, the City Commission,
authorized the City Manager to execute a lease between the City of Miami ("City") and Justice
Investigative Associates, Ltd., ("JIA") owners of the property located at 155 South Miami
Avenue, Miami, Florida, 33130 for the use of approximately 2,585 square feet of rentable
space (the "Original Premises").
On March 4, 2003, the City Manager, on behalf and for the benefit of the Civilian
Investigative Panel ("CIP"), executed a Lease Agreement (the "Lease Agreement") with JIA
for a five-year tern, with one five-year option to renew, to establish an administrative office
for the CIP. Subsequently, on June 22, 2006, JIA conveyed its interest in the property to
Columbus Properties, Inc., a/k/a Columbus Properties, Inc. of Alaska, successor in assigns to
JIA, ("Landlord"). Although the space was rented for the CIP's benefit, the City is the party
which executed the agreement.
Thereafter, the CIP was interested in expanding its administrative offices in order to
increase its services at its present location at the Original Premises. The parties then negotiated
to amend the Lease Agreement to occupy additional adjacent space of 1,485 rentable square
feet (the "Expansion Premises"), for a total of approximately 4,070 square feet of rentable
space (the Original Premises and the Expansion Premises being collectively the "Total
Premises") subject to the Landlord completing certain capital improvements to the Expansion
Premises and subject to the City exercising an option to renew for a five-year term for the Total
Premises and at a rental rate to the City of up to $22.00 per rentable square foot. However, the
City and Landlord further negotiated that commencing June 1, 2008, the annual lease rent for
the Total Premises would be $22.66 per rentable square foot or $7,685.52 per month and
thereafter would be increased by 3% annually for the Total Premises for the remainder of the
Columbus Properties, Inc. v. City of Miami
Case No.: 10-40654 CA 05
Page 2
thereafter would be increased by 3% annually for the Total Premises for the remainder of the
Amended Lease Term. The following table outlines the rental payments due under the Lease's
five-year option:
Premises
Square Feet
Time Period
Rate
Monthly Rent
Annual Rent
PH-1C
1,485
Upon occupancy—
May 31, 2008
$22.00
$2,722.50
N/A
PH-1B
2,585
Through May 31,
2008
Pursuant to lease
dated March 4,
2003
Pursuant to
lease dated March
4, 2003
Pursuant to
lease dated
March 4, 2003
PH-1B &
PH-1C
4,070
June 1, 2008 —
May 31, 2009
$22.66
$7,685.52
$92,226.20
PH-1B &
PH-1C
4,070
June 1, 2009 - May
31, 2010
$23.34
$7,916.15
$94,993.80
PH-1B &
PH-1C
4,070
June 1, 2010 —
May 31, 2011
$24.04
$8,153.57
$97,842.80
PH-1B &
PH-1C
4,070
June 1, 2011—
May 31, 2012
$24.76
$8,397.77
$100,773.20
PH-IB & '
PH-1C
4,070
June 1, 2012 —
May 31, 2013
$25.50
$8,648.75
$103,785.00
On December 9, 2009, Mr. Charles Mays, Civilian Investigative Panel ("CIP")
Independent Counsel, sent a Legal Services Request to our office asking for the Law
Department's assistance in re -negotiating or tenninating the Lease Agreement referenced above.
After careful review of the Lease Agreement and Amendment, our office determined
that there were no provisions in the Lease that allowed for the CIP's early termination.
Furthermore, our attempts to contact the Landlord in order to renegotiate the CIP's Lease
Agreement were unsuccessful. Therefore, pursuant to the Legal Services Request submitted by
Mr. Mays, our office proceeded to write a letter to the Landlord asking to release the CIP from
its tenancy without fault and for the Landlord's cooperation in vacating the Total Premises on
March 31, 2010. The City continued to not receive any cooperation from the Landlord and this
Office was unable to obtain a favorable result for the CIP. On or about March 31, 2010, the
CIP peacefully vacated the Premises and has since ceased to make any of the rental payments
due under the Lease, thereafter on July 27, 2010, the Landlord filed the above referenced
action.
On December 1, 2010, during court -ordered mediation, the parties reached the settlement
attached hereto, The Office of the City Attorney has investigated and exhausted this case and has
approved the recommendation of this settlement.
Attachments
cc: Tony E. Crapp. Jr., City Manager
Elvi Gallastegui, Agenda Coordinator
NAR: Doc. No.: 260679