HomeMy WebLinkAboutSummary FormDate: 5/27/2014
AGENDA ITEM SUMMARY FORM
14-00524
FILE ID:
Law Department
Matter ID No.
13-2765
Requesting Department: Public Facilities/Asset Mgmt.
Commission Meeting Date: 6/12/2014 District Impacted: 2
Type: I1 Resolution ❑ Ordinance ❑ Emergency Ordinance ['Discussion Item
❑ Other
Subject: Resolution to negotiate and execute a Fourth Amendment to the Amended and Restated Lease
Agreement, retail parcel, (the "Amendment"), between the City of Miami ("City") and Bayside Marketplace,
LLC.
Purpose of Item:
A Resolution of the Miami City Commission, with attachment(s), authorizing the City Manager to negotiate
and execute, in a form acceptable to the City Attorney, a Fourth Amendment to the Amended and Restated
Lease Agreement, retail parcel, (the "Amendment"), between the City of Miami ("City") and Bayside
Marketplace, LLC, a Delaware Limited Liability Company, successor by merger to Bayside Center Limited
Partnership ("Developer"), in substantially the attached form, for City -owned property located at 401 Biscayne
Blvd., Miami, Florida, to modify certain provisions of the Lease and recognize the sub -ground lease to SkyRise
Miami, LLC ("SkyRise") Tower Sublease, as stated herein, to include the extension of the current lease term,
provided all renewal options are validly exercised, by (53) years; amending the rental payments and to include
the Tower Rent and Tower Percentage Rent as defined in the Amendment; establishing the Minimum Base
Rent payments on the Effective Date, requiring rent adjustments based on appraisals conducted every ten (10)
years from the Effective Date for Skyrise and upon the first renewal term for Developer; establishing a Transfer
Fee from the Developer and Skyrise; subject to approval of the Amendment by referendum; with additional
terms and conditions as more particularly set forth in the Amendment which terms may be amended by the City
Manager and the City Attorney as may be necessary in order to meet the best interests of the City.
Background Information:
See Supplemental Page
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 N/A Budge
If using or receiving capital funds
Grams 1NIA Risk Management
Purchasing N/A Dept. Director
7
Chief // City Manag:,
6
l
i
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SUPPLEMENTAL PAGE
Subject: Resolution to negotiate and execute a Fourth Amendment to the Amended and Restated Lease
Agreement, retail parcel, (the "Amendment"), between the City of Miami ("City') and Bayside Marketplace,
LLC.
Background Information:
The City and Developer are the current landlord and tenant, respectively, for certain premises located at
Bayside Marketplace in Miami, Florida, as more particularly described in the Lease (the "Leased Property"). A
memorandum of the Lease was recorded in Book 12684, at Page 157, and supplemented in Book 13492, at
Page 3199, both of the Public Records of Miami -Dade County, Florida.
The City and Developer, under that certain Amended and Restated Lease Agreement dated as of October 15,
1985, as amended by that certain First Amendment to Amended and Restated Lease Agreement dated as of
August 19, 1986, as further amended by that certain Second Amendment to Amended and Restated Lease
Agreement dated as of November 24, 1987, and as further amended by that certain Third Amendment to
Amended and Restated Lease Agreement dated as of April 15, 1993 (collectively and together with any
attachments, exhibits or riders thereto, the "Lease"), desire to modify certain provisions of the Lease, and
recognize the Tower Sublease, on the terms and conditions set forth herein and subject to any conditions,
approvals, reservations and stipulations existing by virtue of applicable laws, rules, regulations and business
negotiations relative to the particulars of the Tower Sublease as follows:
In exchange for extending the term of the Retail Lease by 53 years, increasing the cap on refinancing to 80% of
the appraised value of the improvements, and increasing the maximum allowable square footage to include the
development of a 1,000 foot tall observation and entertainment tower known as Skyrise, the City will receive
an up -front payment of $10,000,000 plus 3% of the first $125,000,000 in refinancing for a total payment of
$13,750,000; the current annual minimum base rent of $1,000,000 will be increased to $1,540,000 and the
percentage rent calculation will be changed from a calculation involving a percentage of the Developer's
profits, which the City has received $0.00 over the life of the Lease, to 6% of their gross revenues above a
natural breakpoint of $25,666,666; a minimum base rent for the Skyrise Tower in the amount of $1,059,082
and a 1% of the SkyRise Gross Revenue over a breakpoint of $55,000,000.
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