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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #6800 Date: 11/05/2019 Commission Meeting Date: 11/21/2019 Requesting Department: Department of Real Estate and Asset Management Sponsored By: District Impacted: District 5 Type: Resolution Subject: Amend Lease Agreement - Overtown Youth Center, Inc. Purpose of Item: A Resolution of the Miami City Commission authorizing the City Manager to negotiate and execute, in a form acceptable to the City Attorney and Bond Counsel, an Amendment to the existing Lease in compliance with Internal Revenue Service Safe Harbor Rules and pursuant to an exemption granted under City Charter Section 29-B, as amended, for the expansion of the Overtown Youth Center's leasehold by fifteen thousand five hundred fifty one (15,551) square feet of the City's property located at Gibson Park, 380 Northwest 14th Street, Miami, Florida, for the non-exclusive provision of public educational and recreational opportunities, at no cost, to the inner City youth and their families residing in the Overtown area, with said Amendment providing for an extension of nine (9) years above and beyond the remaining term of the Lease. Background of Item: The City of Miami ("City" or "Lessor") and Overtown Youth Center, Inc. ("Overtown Youth Center" or "Lessee"), a Florida not -for -profit corporation, entered into a Lease Agreement dated February 28, 2001, ("Lease") for the use of approximately fifty seven thousand three hundred sixteen (57,316) square feet of the City's property located at Gibson Park, 380 Northwest 14th Street, Miami, Florida ("Subject Property"), for the non-exclusive provision of public educational and recreational opportunities, at no cost, to the inner City youth and their families residing in the Overtown area. Said Lease was executed in compliance with Internal Revenue Service Safe Harbor Rules and pursuant to Section 29-B of the Charter of the City of Miami, Florida, as amended, ("City Charter"), granting an exemption from the competitive bidding process established for a disposition to implement projects authorized under the Florida Community Redevelopment Act of 1969 as provided by Part III, Chapter 163, Florida Statutes, as amended. Lessor and Lessee previously entered into amendments to the Agreement dated June 6, 2016 ("Amendment No. 1") and January 9, 2019 ("Amendment No. 2"), which collectively extended the term of the Agreement through February 28, 2066 and allowed for improvements to be done to the Property. Lessor and Lessee desire to further amend the Agreement to enable Lessee to make substantial capital improvements in an amount no less than twelve million dollars ($12,000,000) to the Subject Property, which will result in the demolition of the existing structure on the Subject Property, and the design, permitting, construction and operation of a new approximately 41,000 square - foot, four-story academic, enrichment, and administration building on the Subject Property ("New Facility"), all according to the terms more particularly set forth in this Amendment. Lessee shall raise the funds necessary for the demolition and construction of a New Facility and requires an extension of the Lease by an additional nine (9) years, as well as an increase the square footage of the Subject Property by approximately fifteen thousand five hundred fifty one (15,551) square feet in order to obtain the required funding. Any failure to accomplish any of the conditions listed herein or in the Amendment, shall immediately render this Amendment null and void. Budget Impact Analysis Item has NOT an Expenditure Item is NOT Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: Reviewed B Real Estate and Asset Management Aldo Bustamante Office of Management and Budget Pedro Lacret Office of Management and Budget Christopher M Rose Department of Risk Management Ann -Marie Sharpe City Manager's Office Fernando Casamayor Legislative Division Valentin J Alvarez City Manager's Office Nikolas Pascual Department of Fire -Rescue Daniel Diaz Office of the City Attorney Barnaby L. Min City Commission Maricarmen Lopez Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Legislative Division Valentin J Alvarez Office of the City Attorney Xavier Alban Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez Office of the City Clerk City Clerk's Office Department Head Review Budget Analyst Review Budget Review Risk Review Assistant City Manager Review Legislative Division Review City Manager Review ACA Review Deputy City Attorney Review Meeting Unsigned by the Mayor Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Signed and Attested by the City Clerk Completed Legislative Division Review Completed ACA Review Completed Deputy Attorney Review Completed Approved Form and Correctness with Modification(s) Rendered Completed 11/05/2019 2:25 PM 11/06/2019 1:31 PM 11/06/2019 3:31 PM 11/06/2019 5:15 PM 11/07/2019 7:06 AM 11/07/2019 11:10 AM 11/07/2019 11:18 AM 11/12/2019 2:49 PM 11/12/2019 5:03 PM 11/21/2019 9:00 AM 12/03/2019 5:33 PM 12/03/2019 5:38 PM 12/23/2019 1:45 PM 12/23/2019 2:09 PM 12/23/2019 3:22 PM Completed 01/07/2020 9:01 AM City of Miami Legislation Resolution Enactment Number: R-19-0441 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 6800 Final Action Date:11/21/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, AN AMENDMENT TO THE EXISTING LEASE AGREEMENT BETWEEN THE CITY OF MIAMI ("CITY") AND THE OVERTOWN YOUTH CENTER, INC., A FLORIDA NOT FOR PROFIT CORPORATION ("OVERTOWN YOUTH CENTER"), DATED FEBRUARY 28, 2001 ("LEASE") IN COMPLIANCE WITH INTERNAL REVENUE SERVICE SAFE HARBOR RULES AND PURSUANT TO SECTION 29-B OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED; EXTENDING THE LEASE BY AN ADDITIONAL NINE (9) YEARS AND ADDING APPROXIMATELY FIFTEEN THOUSAND FIVE HUNDRED FIFTY ONE (15,551) SQUARE FEET OF THE OVERTOWN YOUTH CENTER'S CURRENT LEASEHOLD AT THE CITY -OWNED PROPERTY LOCATED AT 450 NORTHWEST 14TH STREET, MIAMI, FLORIDA, MORE COMMONLY KNOWN AS GIBSON PARK, FOR THE CONTINUED AND EXPANDED USE OF THE FACILITIES FOR THE NON-EXCLUSIVE PROVISION OF PUBLIC EDUCATIONAL AND RECREATIONAL OPPORTUNITIES, EXCLUDING THE USE OF THE PROPERTY FOR CHARTER OR PRIVATE SCHOOL PURPOSES, AT NO COST, TO THE INNER CITY YOUTH AND THEIR FAMILIES RESIDING IN THE OVERTOWN AREA; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ANY AND ALL FURTHER DOCUMENTS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY AND BOND COUNSEL, TO EFFECTUATE SAME. WHEREAS, the City of Miami ("City") and the Overtown Youth Center, Inc., a Florida not for profit corporation ("Overtown Youth Center"), entered into a Lease Agreement dated February 28, 2001 ("Lease") for the use of approximately fifty seven thousand three hundred sixteen (57,316) square feet of the City's property located at Gibson Park, 380 Northwest 14th Street, Miami, Florida ("Subject Property") for the non-exclusive provision of public educational and recreational opportunities, excluding the use of the property for Charter or Private School purposes, at no cost, to the inner City youth and their families residing in the Overtown area; and WHEREAS, said Lease was executed in compliance with Internal Revenue Service Safe Harbor Rules and pursuant to Section 29-B of the Charter of the City of Miami, Florida, as amended ("City Charter"), granting an exemption from the competitive bidding process established for disposition of property to implement projects authorized under the Florida Community Redevelopment Act of 1969 as provided by Part III, Chapter 163, Florida Statutes, as amended; and WHEREAS, the City and Overtown Youth Center (collectively, "Parties") previously entered into amendments to the Agreement dated June 6, 2016 ("Amendment No. 1") and January 9, 2019 ("Amendment No. 2"), which collectively extended the term of the Agreement through February 28, 2066; and WHEREAS, the Parties desire to further amend the Agreement to enable Overtown Youth Center to make substantial capital improvements to the Subject Property, which will result in the demolition of the existing structure on the Subject Property and the design, permitting, construction, and operation of a new approximately sixty two thousand six hundred twenty (62,620) square -foot, three-story academic, enrichment, and administration building on the Subject Property ("New Facility"), all according to the terms as more particularly set forth in this Amendment; and WHEREAS, the Overtown Youth Center shall raise the funds necessary for the demolition and construction of the New Facility and requires an extension of the Lease by an additional nine (9) years and an increase in the square footage of the Subject Property by approximately fifteen thousand five hundred fifty one (15,551) square feet in order to obtain the required funding; and WHEREAS, failure to accomplish any of the conditions listed herein or in the Amendment shall immediately render the Amendment null and void; 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. Section 2. The City Manager is authorized' to negotiate and execute, in a form acceptable to the City Attorney and Bond Counsel, the Amendment to the existing Lease in compliance with Internal Revenue Service Safe Harbor Rules and pursuant to Section 29-B of the City Charter for the expansion of the Overtown Youth Center's leasehold by fifteen thousand five hundred fifty one (15,551) square feet of the City's property located at Gibson Park, 380 Northwest 14th Street, Miami, Florida for the non-exclusive provision of public educational and recreational opportunities, excluding the use of the property for Charter or Private School purposes, at no cost, to the inner City youth and their families residing in the Overtown area with said Amendment providing for an extension of nine (9) years above and beyond the remaining term of the Lease. Section 3. The City Manager is further authorized' to negotiate and execute any and all further documents, all in forms acceptable to the City Attorney and Bond Counsel, to effectuate same. Section 4. This Resolution shall become effective immediately upon adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 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.