HomeMy WebLinkAboutR-15-0471City of Miami
Legislation
Resolution: R-15-0471
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 15-01315 Final Action Date: 10/22/2015
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENTS(S),
AUTHORIZING THE CITY MANAGER TO ACCEPT PAYMENT TO THE CITY OF
MIAMI ("CITY"), IN THE AMOUNT OF $150,000.00, IN FULL AND FINAL
SATISFACTION OF ALL AUDIT MATTERS OR LIABILITIES AND OBLIGATIONS OF
BAYSHORE LANDING, LLC ("BAYSHORE"), A FLORIDA LIMITED LIABILITY
COMPANY, PERTAINING TO A LEASE OF CITY -OWNED PROPERTY, LOCATED
AT APPROXIMATELY 2550 SOUTH BAYSHORE DRIVE, MIAMI, FLORIDA,
BEFORE MAY 21, 2015; FURTHER AUTHORIZING THE CITY MANAGER TO
EXECUTE ALL NECESSARY DOCUMENTS WITH BAYSHORE, IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY, IN ORDER TO ACCEPT SAID PAYMENT.
WHEREAS, the City of Miami ("City") owns certain property located at approximately 2550 South
Bayshore Drive, Miami, Florida, which comprises both upland and submerged land ("Property"); and
WHEREAS, on September 20, 1985, the City entered into a Lease Agreement, wherein the
Property was leased to Bayshore Properties, Inc. for a period commencing September 30, 1985 and
expiring May 31, 2035; and
WHEREAS, the Lease Agreement, as subsequently amended and modified, was assigned to
Bayshore Landing, LLC ("Bayshore"), a Florida Limited Liability Company, pursuant to an Assignment
and Assumption of Master Lease dated August 20, 2004 and Consent to Assignment dated August
23, 2004; and
WHEREAS, the City's Office of the Independent Auditor General ("Auditor"), in accordance with
the terms of the Lease Agreement, performed an audit of Bayshore's compliance with the lease
provisions for the period of October 1, 2011 through September 30, 2013, concluding that Bayshore
owed the City $126,887.00 in additional rent as a result of differences in the calculation of gross
receipts and minimum rental payments (See Audit No. 15-004 attached hereto as Exhibit "A"); and
WHEREAS, prior to the conclusion of the audit, Bayshore remitted payment to the City in the
amount of $34,685.00, leaving a balance due of $92,202.00; and
WHEREAS, during the course of the audit, the Lease Agreement, as subsequently amended and
modified, was assigned to Aligned Bayshore Marina LLC ("Aligned") pursuant to an Assignment and
Assumption of Master Lease dated May 21, 2015 and Conditional Consent to Assignment and
Assumption dated February 26, 2015; and Bayshore entered into an Escrow Deposit Agreement and
General Conditions of Escrow ("Escrow Agreement"), wherein it agreed to deposit $150,000.00 with
an agreed upon escrow agent, to satisfy any amounts due and owing by Bayshore under the terms of
Lease Agreement; and
WHEREAS, the entire $150,000.00 remains in escrow pursuant to the Escrow Agreement; and
City of Miami
Page 1 of 3 File Id: 15-01315 (Version: 11 Printed On: 4/3/2018
File Number: 15-01315 Enactment Number: R-15-0471
WHEREAS, the Auditor performed an additional audit of Bayshore's compliance with the lease
provisions for the period of October 1, 2013 through the assignment of its leasehold interest to
Aligned on May 21, 2015, concluding Bayshore owed the City $22,461.00 in additional rent as a
result of differences in the calculation of gross receipts and minimum rental payments (See Audit No.
15-015 attached hereto as Exhibit "B"); and
WHEREAS, due to previous findings, the Auditor performed an additional audit of Bayshore's
compliance with the lease provisions for the period of August 20, 2004 through September 30, 2011,
concluding Bayshore owed the City $271,935.00 in additional rent as a result of differences in the
calculation of gross receipts and minimum rental payments (See Audit No. 15-019 attached hereto as
Exhibit "C"); and
WHEREAS, the Auditor concluded that the total sum owed the City by Bayshore equaled
$386,598.00 for all three (3) audit periods, after deducting the $34,685.00 payment that was
previously received; and
WHEREAS, Bayshore proposed to direct the escrow agent to release the full $150,000.00
currently held in escrow to the City in full and final satisfaction of all audit matters or liabilities and
obligations of Bayshore pertaining to the Lease Agreement before May 21, 2015; and
WHEREAS, release by Bayshore of the full $150,000.00 currently held in escrow to the City, in
full and final satisfaction of all audit matters or liabilities and obligations of Bayshore pertaining to the
Lease Agreement before May 21, 2015, has been evaluated by both the Office of the City Attorney
and the City Manager's Office and is recommended for approval by the same, subject to final
approval by the City Commission.
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 hereby authorized to accept payment to the City, in the amount of
$150,000.00, in full and final satisfaction of all audit matters or liabilities and obligations of Bayshore
pertaining to the Lease Agreement before May 21, 2015.
Section 3. The City Manager is further authorized to execute all necessary documents with
Bayshore, in a form acceptable to the City Attorney, in order to accept said payment.
Section 4. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor. {1}
Footnotes:
City of Miami Page 2 of 3 File Id: 15-01315 (Version: 11 Printed On: 4/3/2018
File Number: 15-01315 Enactment Number: R-15-0471
(1) 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 3 of 3 File Id: 15-01315 (Version: 1) Printed On: 4/3/2018