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HomeMy WebLinkAboutSubmittal-Com. Russell-Construction Waiver Chalks Airlines, Inc.AIRUNE INC. Commissioner Ken Russell City of Miami 3500 Pan American Drive Miami, FL 33133 Dear Commissioner; January 8, 2016 As promised, I am pleased to enclose herewith a construction waiver in the terms discussed at your offices, wherein, basically, CHALKS waives its rights to construct 50% of the new construction added in 2014 to the current version of the Amended and Restated Air Terminal Facility Sublease, and wherein CHALKS continues to have the construction rights it had prior to Miami 21 as ruled by Judge Jorge Cueto of the Miami -Dade County Circuit Courts (Case No. 07-30071), as such rights were treated under the amended sublease. /10 Ignacio J. Vega-Penichet Lopez President Chalks Airline, Inc. Submitted into the ublic record for item(s) - (1q t U on I— I �#�� (p . ity Clerk Sbrn��� l-APH)61 G�'lv v L O VS �� �zt< Inc. AIRLINE INC. STRICTLY CONFIDENTIAL Commissioner Ken Russell City of Miami 3500 Pan American Drive Miami, FL 33133 Dear Commissioner: Submitted into the pubic record fo item(s) on January 8, 2016 Please refer to (1) the Future Land Use Change Request (File ID: 15-006721u) being brought before the City Commission; (2) the Amended and Restated Air Terminal Facility Sublease dated July 24, 2015 by and between Miami Sports and Exhibition Authority ("MSEA") and Chalks Airline, Inc. ("CHALKS") regarding the Miami Seaplane Base (the "Sublease") and (3) your concerns in regards to the scope of the project as voiced in the City Commission Meeting of December 10, 2015 and our meeting of January 8, 2016. It has taken Chalks Airlines more than 9 years to have our case reviewed by the City Commission, and even though we truly believe that (1) the City Commission should simply remedy what was mistakenly done back in 2010 by the City of Miami, as proposed by the City of Miami itself, that (2) such remedy does not provide, per se, any immediate and automatic construction rights to CHALKS and (3) that the traffic arising from the refurbishment and redevelopment of the Miami Seaplane Base is already absorbed by the existing traffic since CHALKS has been operating at the leased property since 1926, we would like to respect your position and provide you with sufficient time for you to make a re sonable and sound decision in such regard taking all matters and concerns into account, that is, our legitimate legal rights to such Land Use Change and those other, legitimate concerns as well, corresponding to the rest of the public that you serve. To such end, we are hereby willing to reduce and waive, at your request and subject to MSEA's approval, our construction rights with respect to the "additional" new construction referred to as the "Commercial Facility" in Section 3 of the current Sublease from 100,000 interior square feet to 50,000 interior square feet, in the following terms and conditions: 1. CHALKS' construction contractual rights to the "additional" new construction referred to as the "Commercial Facility" in Section 3 of the current Sublease, and added to the ity Clerk Submitted into the public n record for it m(s) on City Clerk AfRUNE iNC. current version of the Sublease in 2014, shall be reduced from 100,000 interior square feet to 50,000 interior square feet, and the rent payable in connection therewith shall be subject to the Percentage Rent stipulated in Section 7,1.2 of the Sublease, in the clear understanding that the minimum Base Rent contemplated in such Section (calculated for the total construction) shall no longer be applicable. CHALKS' rights as to the remaining 50,000 interior square feet corresponding to the Commercial Facility now waived shall remain subject and conditional upon further and subsequent new agreement(s) between MSEA and CHALKS in such respect. 2. Notwithstanding (1) above, CHALKS shall continue to have under the Sublease the right to construct as Basic Construction Rights acquired by CHALKS prior to Miami 21: (i) the Air Transport Facility (as defined in Section 1.10.1 of the Sublease), including the areas and premises necessary or convenient, at CHALKS discretion, to provide the minimum services contemplated in Section 1.12 of the Sublease; (ii) independent Food, Liquor and Beverage areas and premises and (iii) sports and recreational areas, with the only limitation that the interior area dedicated to Food, Liquor and Beverage shall be limited to no more than 18,948.6 square feet (15% of 2.9 acres) as ruled by Judge Jorge Cueto of the Miami -Dade County Circuit Courts (Case No. 07-30071) ("Basic Construction Rights"). In consideration to the reduction and waiver of the construction rights stipulated in (1) above, the monthly rent payable in connection with the premises constructed pursuant to the Basic Construction Rights contemplated under this section (1) shall consist in a flat rate of US DOLLARS SIX THOUSAND (US$6,000.00) during the whole Sublease Term and extensions (as provided for in Section 28 of the Sublease) and, notwithstanding anything to the contrary in the Sublease, subject only to annual adjustments for CPI, commencing in the beginning of the second lease year as stipulated in the former Air Terminal Facility Sublease of March 6, 2002. 3. In further consideration to such waiver, MSEA shall bear again, as stipulated in the former Air Terminal Facility Sublease of March 6, 2002, the obligation to (i) install and construct all necessary infrastructure improvements required for Tenant's construction and use of Tenant's improvement referred to in Section 5.2 of the Sublease, such as roads, water, sewer, storm water drainage and telephone and electric utilities, including, without limiting the foregoing, the relocation costs of the existing overhead electrical wires and of the water and sewer pipes to a new easement to be created by the City of Miami surrounding the leased property, and (ii) to provide CHALKS, without charge, with 8 parking spaces in close proximity to the Air Transport Facility, and, ingeneral, other than the rent payments which shall be strictly calculated and paid as stipulated and stated above in this waiver, CHALKS shall have no other further monetary or financial obligation vis-a-vis the Landlord, notwithstanding anything to the contrary contained in Submitted into the public) recor for itern{s) Q?, 1 y on City Clerk AIRLINE NC. the Sublease, which had not been expressly contemplated in the former Air Terminal Facility Sublease of March 6, 2002. With all due respect, this offer is being submitted to you on a personal basis, in good faith and for honorable purposes to provide you with additional time for the consideration of the matters and concerns mentioned above, and shall be valid until CHALKS' design and layout project proposal to be submitted by CHALKS to MSEA pursuant to the current Sublease, meets with your consent and/or approval. Si. - - .urs Ignacio J. Vega-Penichet Lopez President Chalks Airline, Inc.