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City of Miami
Legislation
Resolution
City Hail
3500 Pan American
Drive
Miami, FL 33133
www.ci.miaml.fl.us
File Number: 05-00594 Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, TO THE LEASE AGREEMENT
BETWEEN THE CITY OF MIAMI AND BISCAYNE BAY RESTAURANT (D/B/A
RUSTY PELICAN) TO PROVIDE FOR: (1) AN EXTENSION OF THE BASE TERM
TO EXPIRE ON OCTOBER 1, 2027, WITH TWO (2) FIVE-YEAR OPTIONS TO
RENEW; (2) BASE RENT TO INCREASE TO $360,000, PER YEAR COMMENCING
ON THE EXECUTION DATE OF THE AMENDMENT; (3) PERCENTAGE RENT TO
INCREASE UPON THE EARLIER OF (I) COMPLETION OF THE REQUIRED
CAPITAL IMPROVEMENTS OR (II) TWENTY-FOUR (24) MONTHS AFTER
iSSUANCE OF THE FIRST BUILDING PERMIT, TO 7% OF GROSS REVENUES
FROM $0 - $12,000,000, ANNUALLY AND 8% OF GROSS REVENUES OVER
$12,000,000, ANNUALLY; AND (4) CONSTRUCTION OF CAPITAL
IMPROVEMENTS BY LESSEE, AT ITS SOLE COST, WITH A COST OF NOT LESS
THAN $3,000,000, INCLUDING SOFT COSTS, WITH TERMS AND CONDITIONS
AS MORE PARTICULARLY SET FORTH IN THE AMENDMENT.
WHEREAS, the City of Miami ("City") and Biscayne Bay Restaurant ("Lessee") entered into a
Lease Agreement dated February 13, 1970 ("1970 Lease Agreement") whereby the City leased to
Lessee the City -owned property located at approximately 3201 Rickenbacker Causeway, Miami,
Florida ("Property"), for the development and operation of a first class waterfront restaurant now known
as the Rusty Pelican Restaurant ("Rusty Pelican"); and
WHEREAS, the 1970 Lease Agreement has been amended by Supplemental Lease Agreement
dated July 23, 1970, Amendment No. 1 to Lease Agreement dated May 28, 1982, undated Addendum
to Lease Agreement authorized by Resolution No. 89-508, adopted June 7, 1989 and Amendment to
Lease Agreement dated December 18, 2001 (collectively the "Lease"); and
WHEREAS, the term of the Lease, together with the options to renew, expires on October 1, 2012;
and
WHEREAS, Lessee requested the City to extend the term of the Lease in order to amortize the
cost of certain capital improvements that the Lessee plans to perform on the Property; and
WHEREAS, on July 24, 2003, the City Commission authorized the submission for consideration by
the electorate of the City, of a ballot question to amend Section 29-B of the City Charter to authorize
the City Commission to amend the Lease to extend the original expiration date and increase the
minimum guarantee to the City; and
WHEREAS, at a special municipal election held November 4, 2003, the electorate of the City
approved the proposed extension and modification of the Lease;
City of Miami Page I of 2 Printed On: 6/22/2005
File Number: 05-00594
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. The City Manager is authorized{1} to execute an Amendment, in substantially the
attached form, to the Lease between the City and Biscayne Bay Restaurant, to provide for: (1) an
extension of the base term to expire on October 1, 2027, with two (2) five-year options to renew;
(2) base rent to increase to $360,000, per year commencing on the execution date of the Amendment;
(3) percentage rent to increase upon the earlier of: (i) completion of the required capital improvements
or (ii) twenty-four (24) months after issuance of the first building permit, to 7% of gross revenues from
$0 - $12,000,000, annually and 8% of gross revenues over $12,000,000, annually; and (4) construction
of capital improvements by Lessee, at its sole cost, with a cost of not Tess than $3,000,000, including
soft costs, with terms and conditions as more particularly set forth in the Amendment.
Section 3. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor.{2}
APPROVED AS TO FORM AND CORRECTNESS
JOR L. ERNANDEZ
CITY A NEY
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be imposed
by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code
provisions.
{2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar
days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become
effective immediately upon override of the veto by the City Commission.
City of Miami Page 2 of 2 Printed On: 6/22/2005