HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM
File ID: #2876
Date: 08/18/2017
Commission Meeting Date: 10/12/2017
Requesting Department: Department of Real
Estate and Asset Management
Sponsored By:
District Impacted: District 2
Type: Resolution
Subject: Fifth Amendment - Miami Outboard Club, Inc.
Purpose of Item:
A Resolution of the City of Miami Commission, with attachment(s), authorizing the City
Manager to execute a fifth amendment ("Fifth Amendment") to the Lease Agreement
between the City of Miami ("City") and Miami Outboard Club, Inc., a Non -Profit Florida
Corporation ("Lessee"), in substantially the attached form, for City -owned property
located 1099 Macarthur Causeway, Miami, Florida ("Lease Property"), to modify certain
provisions of the Lease as stated herein, including the extension of the current Lease
Term by an additional term of Twenty Five (25) years, with Two (2) additional Ten (10)
year options; an increase to the Base Monthly Rent to Thirteen Thousand Dollars
($13,000.00) while continuing to provide for Community Service Credits; modification of
the Percentage Rent payment to include revenues collected for membership dues and
boat storage; and a minimum of Six Million Dollars ($6,000,000.00) in capital
improvements to the Property at Lessee's expense within Six (6) years of the Fifth
Amendment Effective Date; with additional terms and conditions as more particularly set
forth in the Fifth Amendment.
Background of Item:
The City of Miami ("City") is the owner of real property and improvements located at
1099 MacArthur Causeway, Miami, Florida (the "Leased Property").
On November 2, 1993, the electorate of the City of Miami approved Charter
Amendment No. 1 thereby amending the Charter of the City of Miami to establish a
procedure for waiving competitive bidding and referendum requirements when entering
into a lease or extending an existing lease with a nonprofit, noncommercial, water -
dependent organization which provides or seeks to provide marine -recreation services
and/or activities to the community at any city -owned waterfront property, provided
certain conditions are met pertaining to public access, public use, waterfront setback
and view -corridor requirements, fair return to the City, compliance with the master plan
and requirements prescribed by ordinance pertaining to an organization using city -
owned facilities.
Section 29-D of the Charter of the City of Miami, Florida, as amended, provides that the
City Commission may waive competitive bidding and referendum requirements when
entering into a lease or extending an existing lease with a non-profit, noncommercial,
water -dependent organization which provides or seeks to provide marine -recreation
services and/or activities to the community at any City -owned waterfront property,
provided certain conditions are met pertaining to public access, public use, waterfront
setback and view -corridor requirements, fair return to the City, compliance with the
master plan and requirements prescribed by ordinance pertaining to an organization
using City -owned facilities.
The City Commission has found it to be in the best interest of the citizens of Miami to
waive competitive bidding and referendum requirements as provided for in Section 29-D
of the, City Charter and to enter into a lease agreement with the Miami Outboard Club.
The Commission of the City of Miami, Florida, by Resolution No. 95-865, passed and
adopted on December 7, 1995, determined that it is in the best interest of the City of
Miami to enter into a lease agreement with the Miami Outboard Club for the provision of
marine -recreation services in accordance with the provisions of Section 29-D of the
Charter of the City of Miami.
The City leased to Lessee a portion of Watson Island for a term of twenty years
commencing on April 1, 1996 and expiring on March 31, 2016 with the option to renew
for two (2) additional five (5) year periods.
The parties amended the Lease on December 5, 2000 ("Amendment #1), June 6, 2005
("Amendment #2"), May 24, 2011 ("Amendment #3"), and June 4, 2013 ("Amendment
#4").
The City and Lessee wish to enter into this Fifth Amendment modifying certain
provisions and extending their current Lease which will enable them to finance
substantial improvements to the Lease Property and bring the Base Monthly Rent to fair
market value in accordance with the provisions of Section 29-D of the Charter of the
City of Miami.
Budget Impact Analysis
Item is Related to Revenue
Item is NOT funded by Bonds
Total Fiscal Impact:
$70,000.00 estimated additional revenue to the City annually.
Reviewed B
Real Estate and Asset Management Aldo Bustamante
Office of Management and Budget Everton Garvis
Office of Management and Budget Christopher M Rose
City Manager's Office Alberto N. Parjus
City Manager's Office Daniel J. Alfonso
Legislative Division Valentin J Alvarez
Office of the City Attorney Barnaby L. Min
Office of the City Attorney Victoria Mendez
City Commission Nicole Ewan
Legislative Division Valentin J Alvarez
Office of the City Attorney Barnaby L. Min
Office of the City Attorney Victoria Mendez
City Commission Nicole Ewan
Office of the Mayor Mayor's Office
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
legislative Division Review
Deputy Attorney Review
Approved Form and Correctness
Meeting
Signed by the Mayor
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
08/21/2017 7:03 AM
08/21/2017 9:02 AM
08/21/2017 9:47 AM
08/23/2017 1:59 PM
08/26/2017 10:24 AM
09/15/2017 9:16 AM
09/15/2017 10:11 AM
09/19/2017 6:42 PM
09/28/2017 9:00 AM
10/02/2017 3:35 PM
10/02/2017 4:20 PM
10/02/2017 8:03 PM
10/12/2017 9:00 AM
10/17/2017 5:16 PM
Office of the City Clerk
Legislative Division
Office of the City Attorney
Office of the City Attorney
Office of the City Clerk
City Clerk's Office
Valentin J Alvarez
Barnaby L. Min
Victoria Mendez
City Clerk's Office
Signed and Attested by the City Clerk Completed
Legislative Division Review Completed
Deputy Attorney Review Completed
Approved Form and Correctness with Modification(s)
Rendered Completed
10/17/2017 5:28 PM
11/14/2017 1:21 PM
11/14/2017 3:55 PM
Completed
11/14/2017 3:58 PM
City of Miami
Legislation
Resolution
Enactment Number: R-17-0490
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
File Number: 2876 Final Action Date:10/12/2017
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
PURSUANT TO SECTION 29-D OF THE CHARTER OF THE CITY OF MIAMI,
FLORIDA, AS AMENDED, AUTHORIZING THE CITY MANAGER, BY A FOUR -FIFTHS
(4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND TO
EXECUTE A FIFTH AMENDMENT TO THE LEASE AGREEMENT ("FIFTH
AMENDMENT"), IN SUBSTANTIALLY THE ATTACHED FORM, BETWEEN THE CITY
OF MIAMI ("CITY") AND THE MIAMI OUTBOARD CLUB, INC., A NON-PROFIT
FLORIDA CORPORATION ("LESSEE"), FOR USE OF A PORTION OF CITY -OWNED
WATERFRONT PROPERTY ON WATSON ISLAND LOCATED AT 1099 MACARTHUR
CAUSEWAY, MIAMI, FLORIDA 33132 ("LEASE PROPERTY"), WITH SAID FIFTH
AMENDMENT TO (1) EXTEND THE CURRENT LEASE TERM BY AN ADDITIONAL
TERM OF TWENTY-FIVE (25) YEARS WITH TWO (2) ADDITIONAL TEN (10) YEAR
OPTIONS TO RENEW FOR A POSSIBLE TOTAL EXTENSION TERM OF FORTY-
FIVE (45) YEARS ("EXTENSION TERM"); (2) INCREASE THE TOTAL EXTENSION
TERM BASE MONTHLY RENT TO FAIR MARKET VALUE, AS DETERMINED BY
TWO (2) INDEPENDENT APPRAISALS, TO THE AMOUNT OF THIRTEEN
THOUSAND DOLLARS ($13,000.00) INCREASED ANNUALLY BY THREE PERCENT
(3%) WITH THE CONTINUED PROVISION OF COMMUNITY SERVICE CREDITS; (3)
MODIFY THE PERCENTAGE RENT PAYMENT TO INCLUDE REVENUES
COLLECTED FOR MEMBERSHIP DUES AND BOAT STORAGE; (4) PROVIDE FOR
SIGNIFICANT CAPITAL IMPROVEMENTS TO THE LEASE PROPERTY, AT THE
LESSEE'S SOLE EXPENSE, OF A MINIMUM OF SIX MILLION DOLLARS
($6,000,000.00) TO BE COMPLETED WITHIN SIX (6) YEARS OF THE FIFTH
AMENDMENT'S EFFECTIVE DATE; AND (5) PROVIDE FOUR (4) SLIPS FOR USE
BY THE CITY'S POLICE DEPARTMENT MARINE PATROL UNIT; RESERVING ALL
AIR RIGHTS FOR FUTURE CITY BUILDINGS, ALL RIGHTS TO SUBMERGED
LANDS FOR FUTURE CITY BOAT SLIPS AND MARINAS, AND ALL RIGHTS OF
ACCESS TO THE LEASE PROPERTY; WITH SUCH ADDITIONAL TERMS AND
CONDITIONS AS CONTAINED IN THE FIFTH AMENDMENT.
WHEREAS, the City of Miami ("City") is the owner of real property and improvements
located at 1099 MacArthur Causeway, Miami, Florida 33132 ("Lease Property"); and
WHEREAS, on November 2, 1993, the electorate of the City approved amending the
Charter of the City of Miami, Florida, as amended ("Charter"), to establish a procedure for
waiving competitive bidding and referendum requirements when entering into a lease or
extending an existing lease with a nonprofit, noncommercial, water -dependent organization
which provides or seeks to provide marine -recreation services and/or activities to the community
at any City -owned waterfront property, provided certain conditions are met pertaining to public
access, public use, waterfront setback and view -corridor requirements, fair return to the City,
compliance with any applicable master plans, and compliance with requirements prescribed by
any ordinances pertaining to an organization using City -owned facilities; and
WHEREAS, the City Commission by Resolution No. 95-865 passed and adopted on
December 7, 1995, determined that it is in the best interest of the City to enter into a Lease
Agreement ("Lease") with the Miami Outboard Club, Inc. ("Lessee") for the provision of marine -
recreation services in accordance with the provisions of Section 29-D of the Charter; and
WHEREAS, the City leased to the Lessee the Lease Property for a term of twenty (20)
years commencing on April 1, 1996 and expiring on March 31, 2016 with the option to renew for
two (2) additional five (5) year periods; and
WHEREAS, the Parties amended the Lease on December 5, 2000 ("First Amendment"),
June 6, 2005 ("Second Amendment"), May 24, 2011 ("Third Amendment"), and June 4, 2013
("Fourth Amendment"); and
WHEREAS, the City and the Lessee wish to enter into this Fifth Amendment to the
Lease modifying certain provisions and extending the current Lease term by an additional
twenty-five (25) years with two (2) additional ten (10) year options to renew for a possible total
extension term of forty-five (45) years ("Extension Term"), which will enable the Lessee to
finance substantial improvements to the Lease Property pursuant to Section 29-D of the
Charter;
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 Section 29-D of the Charter, the City Manager is authorized,' by
a four -fifths (4/5ths) affirmative vote, to waive competitive bidding and to execute a Fifth
Amendment to the Lease, in substantially the attached form, to (1) extend the current Lease by
the additional term of twenty-five (25) years with two (2) additional ten (10) year options to
renew for the possible total extension term of forty-five (45) years; (2) increase the Extension
Term Base Monthly Rent to fair market value, as determined by two (2) independent appraisals,
by the amount of thirteen thousand dollars ($13,000.00), increased annually by three percent
(3%) and with the continued provision of Community Service Credits; (3) modify the Percentage
Rent payment to include revenues collected for membership dues and boat storage; (4) provide
for significant capital improvements to the Lease Property at the Lessee's sole expense of a
minimum of six million dollars ($6,000,000.00) to be completed within six (6) years of the Fifth
Amendment's Effective Date; and (5) provide four (4) slips for use by the City's Police
Department Marine Patrol Unit; with such additional terms and conditions as contained in the
Fifth Amendment to the Lease.
Section 3. The City shall reserve all air rights for future City buildings, all rights to
submerged lands for future City boat slips and marinas, and all rights of access to the Lease
Property, with such additional terms and conditions as contained in the Fifth Amendment.
Section 4. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.2
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 City 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.
APPROVED AS TO FORM AND CORRECTNESS:
ndez, City Httor
ey ) 9/19/2017 jV t6riai ndez, City Attor ey ) 10/2/2017