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HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FORM FILE ID: Date: 6/16/2011 Commission Meeting Date: 72011 District Impacted: 2 Type: x Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item Other Subject: Revocable License Agreement between the City of Miami ("City") and the Miami Rowing and Watersports Club, Inc. ("Licensee") - VOS77 Requesting Department: Public Facilities/Asset Mgmt Law Department Matter ID No. 11-936 Purpose of Item: A Resolution of the Miami City Commission, with attachments, authorizing the City Manager to execute a Revocable License Agreement ("Agreement"), which is revocable at -will, in substantially the attached form, with Miami Rowing and Watersports Center, Inc. ("Licensee"), a Florida nonprofit corporation, to occupy and use approximately 3.44 acres of City of Miami ("City") owned property located at 3601 Rickenbacker Causeway, Miami, Florida, which license shall provide: 1) for a use period effective October 1, 2010 with an expiration date of September 30, 2015 and a one (1) five- year renewal option, subject to 3-months prior written notice by Licensee, and mutual consent of the parties; 2) Licensee to pay a monthly use fee to the City in the amount of $2,000.00 plus State Use tax, if applicable; past due fees of $35,650.22 to be paid in monthly installments of $594.17 over fifty months, including a lump sum payment of $5,941.70; and an additional percentage fee of 12% of monthly gross revenues; 3) an increase in the monthly use on October 1, 2015 to $2,500.00 plus State Use tax, if applicable, and an increase in the additional percentage fee of monthly gross revenues to 13%; and 4) further providing that 10% of all amounts paid to the City be reserved in a special account by the Finance Department for capital improvements to the Rowing Club Facility; with other terms and conditions as more particularly set forth in said Agreement. 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: . n/a Maintenance Cost: n/a Total Fiscal Impact: $25,188.34 (plus 12% of gross revenues) Final Approvals (SIGN AND DATE) .. CIP NIA Budget N/A Grants Purchasing Risk Manageni ,nnt Dept. Director City Manager , Page 1 of 2 Subject: Revocable License Agreement between the City of Miami ("City") and the Miami Rowing and Watersports Club, Inc. ("Licensee") Background Information: On October 12, 2006, the City Commission adopted Resolution R-06-0593 that authorized the City Manager to execute a Revocable License Agreement ("Agreement") with Miami Rowing and Watersports Center, Inc. ("Licensee"), a Florida nonprofit corporation, for the purpose of operating and maintaining water recreational and educational opportunities at the City -owned property located at 3601 Rickenbacker Causeway ("Property"). The Agreement was for a one-year term commencing October 1, 2006 to September 30, 2007, with a one-year mutual renewal option that expired on September 20, 2008. On May 14, 2009, the City Commission adopted Resolution R-09-0222 authorizing the City manager once again to execute a new one-year Agreement with Licensee, with three (3) one-year renewal options. The Agreement expired on September 30, 2010. Due to the City's financial state, the City and Licensee have been negotiating over the past few months a new fee structure that includes a payment plan for past due monthly and percentage fees. Licensee and City have agreed to enter into a new Revocable License Agreement for the continued use of the property for an initial term of five years with an effective date of October 1, 2010 and an expiration date of September 30, 2015. The new Agreement allows for one (1) five-year renewal option. During the initial period, Licensee shall pay a monthly use fee of $2,000.00; a past due fee totaling $35,650.22 to be paid monthly in the amount of $594.17 for fifty months and a lump sum payment of $5,941.70 on September 30, 2015; and an additional percentage fee of 12% of monthly gross revenues. At the start of the renewal period, the monthly use fee shall increase to $2,500 monthly and the percentage fee shall increase to 13% of monthly gross revenues. The Parks Department has taken over the swimming area of the Property. Licensee shall pay 40% of the monthly electric fees and 35% of the water fees. Licensee is to install a sub -meter for the water utility at which time the City shall be responsible for 100% of the monthly water fees for the pool and Licensee shall be responsible for the water fees it incurs on the Property. Page 2 of 2