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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #2276 Date: 05/04/2017 Commission Meeting Date: 07/27/2017 Requesting Department: Department of Real Estate and Asset Management Sponsored By: District Impacted: District 3 Type: Resolution Subject: Authorize Sublease Agreement - NW 12 Ave Bridge Purpose of Item: A Resolution of the Miami City Commission, with attachment(s), authorizing the City Manager to execute a Sublease Agreement ("Sublease"), in substantially the attached form, between the City of Miami ("City") and NKMIA, LLC, a Delaware limited liability company ("NKMIA") for premises located underneath Northwest 12th Avenue Bridge, as more particularly described in Exhibit "A" of the Sublease ("Property"), with terms and conditions more particularly described in said Sublease, which terms may be amended by the City Manager and approved by the City Attorney, as may be necessary in order to meet the best interest of the City. Background of Item: The City will execute a Lease Agreement ("Lease") with the Florida Department of Transportation for said Property, also known as Parcel 4454. Fashion designer Naeem Khan is relocating his New York -based corporate headquarters to the City, specifically to the adjacent County -owned property located at 1175 NW South River Drive, and his company, NKMIA, LLC ("NKMIA") has executed a ninety (90) year lease agreement with the Miami -County ("County") for said County - owned property. NKMIA received approval for the construction of two buildings that will house the corporate headquarters, a manufacturing facility and a fashion school. NKMIA has requested the City to sublease the Property the City leases from FDOT for parking purposes. FDOT agreed to execute the Lease to allow the City to enter into a sublease agreement with NKMIA for the use of the Property for parking purposes. It is the mutual desire of the City and NKMIA that the Property be subleased for the purposes set forth in the Sublease, subject to and upon the express terms and conditions contained therein. Budget Impact Analysis Item is NOT funded by Bonds Item has NOT an Expenditure Item is NOT Related to Revenue Total Fiscal Impact: N/A Real Estate and Asset Management Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division Office of the City Attorney Office of the City Attorney City Commission City Commission Office of the Mayor Office of the City Clerk Legislative Division Office of the City Attorney Office of the City Attorney Reviewed B Aldo Bustamante Everton Garvis Christopher M Rose Alberto N. Parjus Daniel J. Alfonso Valentin J Alvarez Valentin J Alvarez Victoria Mendez Nicole Ewan Nicole Ewan Mayor's Office City Clerk's Office Valentin J Alvarez Barnaby L. Min Victoria Mendez Department Head Review Budget Analyst Review Budget Review Assistant City Manager Review City Manager Review Legislative Division Review Deputy City Attorney Review Approved Form and Correctness Meeting Meeting Completed Completed Completed Completed Completed Completed Skipped Completed Completed Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Legislative Division Review Completed Deputy Attorney Review Completed Approved Form and Correctness with Modification(s) 05/04/2017 1:03 PM 05/05/2017 11:09 AM 05/09/2017 2:47 PM 05/10/2017 7:07 AM 05/10/2017 6:17 PM 06/08/2017 4:38 PM 06/08/2017 4:38 PM 07/03/2017 8:26 PM 07/13/2017 9:00 AM 07/27/2017 9:00 AM 08/04/2017 5:08 PM 08/04/2017 5:53 PM 10/20/2017 3:35 PM 10/25/2017 7:24 PM Completed City of Miami Legislation Resolution Enactment Number: R-17-0382 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 2276 Final Action Date:7/27/2017 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S DETERMINATIONS, FINDINGS, AND RECOMMENDATIONS, ATTACHED AND INCORPORATED AS ATTACHMENT "A," IN ACCORDANCE WITH SECTION 18-182 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), WAIVING THE REQUIREMENTS (A) FOR SAID PROCEDURES AND (B) FOR A RETURN TO THE CITY OF MIAMI ("CITY") OF FAIR MARKET VALUE; AUTHORIZING THE CITY MANAGER TO EXECUTE A SUBLEASE AGREEMENT ("SUBLEASE"), IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY AND NKMIA, LLC, A DELAWARE LIMITED LIABILITY COMPANY ("NKMIA"), FOR PREMISES LOCATED UNDERNEATH THE NORTHWEST 12TH AVENUE BRIDGE, REQUIRING THAT THIRTY FIVE PERCENT (35%) OF THE JOBS CREATED BY NKMIA BE SET ASIDE FOR CITY RESIDENTS WITH AN INDEPENDENT THIRD PARTY, PROPERLY LICENSED PURSUANT TO CHAPTER 473, FLORIDA STATUTES, AND POSSESSING A MINIMUM OF TWO (2) YEARS EXPERIENCE IN CONTRACTS' COMPLIANCE, AUDITING, PERSONNEL ADMINISTRATION, OR PAYROLL ENFORCEMENT, FOR VERIFYING AND CONFIRMING MONTHLY COMPLIANCE WITH SAID JOB CREATION REQUIREMENT, AT THE SOLE COST OF NKMIA, WITH PAYMENT OF A PENALTY TO THE CITY EQUAL TO THE MONTHLY FAIR MARKET VALUE OF THE PARKING SPACES ALLOTTED TO NKMIA PER EACH MONTH OF NONCOMPLIANCE, WITH TERMS AND CONDITIONS MORE PARTICULARLY DESCRIBED IN THE SUBLEASE, ATTACHED AND INCORPORATED AS ATTACHMENT "B," WHICH TERMS MAY BE AMENDED BY THE CITY MANAGER, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY IN ORDER TO MEET THE BEST INTEREST OF THE CITY. WHEREAS, the City of Miami ("City") is proposing via a separate Resolution to enter into a new lease agreement ("New Lease") with the Florida Department of Transportation ("FDOT") for the property located underneath the Northwest 12th Avenue bridge, also known as FDOT Parcel 4454 ("Property"); and WHEREAS, the City's Fire -Rescue Department ("Department") has been using the Property for equipment storage and emergency vehicle parking; and WHEREAS, fashion designer Naeem Khan is relocating his New York -based corporate headquarters, NKMIA, LLC, a Delaware Limited Liability Company ("NKMIA") to the City, specifically to the adjacent Miami -Dade County ("County") owned property located at 1175 Northwest South River Drive ("County -owned Property") for ninety (90) years; and WHEREAS, NKMIA received approval for the construction of two (2) buildings that will house the corporate headquarters, a manufacturing facility, and a fashion school; and WHEREAS, NKMIA has requested that the City sublease the Property to NKMIA for its parking related needs; and WHEREAS, as a term of the New Lease, FDOT agreed to allow the City to enter into a Sublease Agreement ("Sublease"), in substantially the attached form, with NKMIA for the use of the Property for its parking related needs; and WHEREAS, it is the mutual desire of the City and NKMIA that the Property be subleased for the parking related purposes set forth in the Sublease, subject to and upon the express terms and conditions contained therein; and WHEREAS, the City desires to assist with the proposed Sublease of the Property for parking related purposes and the City Manager has determined, found, and recommended in his memorandum attached and incorporated as Attachment "A," that in accordance with Section 18-182 of the Code of the City of Miami, Florida, as amended ("City Code"), the proposed Sublease of the Property is in the best interests of the City; and WHEREAS, the City's Sublease with NKMIA encompasses the whole of the Property and includes retention of a certain number of parking spaces for use by the Department; and WHEREAS, a four -fifths (4/5ths) affirmative vote of the City Commission is required for waiver of the (a) procedures and (b) the requirement of a financial return to the City for the Sublease of the Property when accomplished for a purchase price which is less than fair market value; and WHEREAS, thirty-five percent (35%) of the jobs created by NKMIA would be set aside for City residents with an independent third party, properly licensed pursuant to Chapter 473, Florida Statutes, and possessing a minimum of two (2) years' experience in contracts' compliance, auditing, personnel administration, or payroll enforcement, verifying and confirming monthly compliance with said job creation requirement, at the sole cost of NKMIA, with payment of a penalty to the City equal to the monthly fair market value of the parking spaces allotted to NKMIA per each month of noncompliance; 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. Pursuant to a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, ratifying, approving, and confirming the City Manager's determinations, findings, and recommendations, attached and incorporated as Attachment "A," in accordance with Section 18-182 of City Code, as amended, waiving the required (a) procedures and (b) requirements of return to the City of fair market value, are waived. Section 3. The City Manager is authorized' to execute the Sublease, in substantially the attached form, with NKMIA for the Property, providing that thirty-five percent (35%) of the jobs created by NKMIA shall be set aside for City residents and that compliance with said requirement be confirmed by an independent third party, properly licensed pursuant to Chapter 473, Florida Statutes, and possessing a minimum of two (2) years' of experience in contract '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 City Code provisions. compliance, auditing, personnel administration, or payroll enforcement, for verification and confirmation of monthly compliance with said job creation requirement, at the sole cost of NKMIA, with payment of a penalty to the City equal to the monthly fair market value of the parking spaces allotted to NKMIA per each month of noncompliance, with terms and conditions as more particularly described in the Sublease, attached and incorporated as Attachment "B," which terms may be amended by the City Manager, in a form acceptable to the City Attorney, as may be necessary in order to meet the best interests of the City. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, Ginty Attor ey 713/2017 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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.