HomeMy WebLinkAboutBack-Up DocumentsIit of Thami
August 20, 2020
Mr. Sergio Rok,
Director, Olympia Center, Inc.
8 Southeast 2nd Avenue, Suite 600
Miami Florida 33131
Arthur Noriega V
City Manager
RE: Termination of the Management Agreements between the City and Olympia Center, Inc. for the
Gusman Theater and Olympia Building
Mr. Rok,
The City of Miami ("City") and Olympia Center, Inc. ("OCI") have both benefited from a partnership spanning
many productive years. However, in these trying times amid the pandemic, and other multiple hardships, the
challenges of running a historic theater complex have become a daunting task.
In recent discussions with Mr. Robert Geitner, the General Manager of both the Theater and Olympia building,
the possibility of transitioning the property back to the City was discussed. As a follow-up to those discussions,
the City realizes that the burden placed upon Olympia Center, Inc. is one that will continue to create hardship,
and could potentially result in an even greater cost to all parties. It is with these unfortunate facts that the City
has determined that it is within the best interest of all parties to begin an accelerated process of terminating both
of the Management Agreements.
Pursuant to Section 25.15 of the Management Agreement for the Gusman Theater and Section 22.13 of the
Management Agreement of the Olympia Building, the City of Miami is hereby providing One Hundred Eighty
(180) days' notice to terminate both Management Agreements. However, to help reduce the above -mentioned
burden, the City is willing to condense the timeline and terminate the agreements in ninety (90) days. If this
early termination is agreeable, please sign below, on the line provided.
I will have City staff coordinate a walkthrough of the property with Mr. Geitner to begin the transition process.
Please have your staff begin assembling all pertinent documentation and information to be handed over to the
City.
Acceptance of Early Termination
Respec
Arthur `,.. ega. V
City Manager
City of Miami
DEPARTMENT OF REAL ESTATE AND ASSET MANAGEMENT
444 S.W. 2"d Avenue, 3rd Floor, Miami, FL 33130 / (305)416-1450 Fax: (305)416-2156
C: Daniel Rotenberg, DRotenberg@miamigov.com
miamigov.com
Mark Burns, MBurns cr miamigov,com
Fernando Casamayor, FCasamayor@miamigov.com
Ralph Patina, rpatino@patinolaw.com
Mayor Francis Suarez, fsuarez@miamigov.com
miamigov.com
Robert Geitner, rgeitner@olympiatheater.org
Commissioner Ken Russell, krussell@miamigov.com
Terrell Fritz, fritz@downtownmiami.net
Olympia Center Inc. — Resolution # 200831-8 DATE: September 02, 2020
RE: TERMINATION OF MANAGEMENT AGREEMENTS ADOPTED: Unanimous Vote
VOTING VIA EMAIL: Ralph Patino, Carlos Trueba, Albert Rodriguez, Sergio Rok, George Cabrera
WHEREAS, Olympia Center Inc. (Olympia) has received the letter regarding Termination of the Management Agreements
between the City of Miami and Olympia Center, Inc. for the Gusman Theater and Olympia Building, and
WHEREAS, Olympia agrees that the City of Miami ("City") and Olympia have both benefited from a partnership spanning many
productive years and that the challenges of managing a historic theater complex have become daunting due to the COVID-19
pandemic, and
WHEREAS, Pursuant to Section 25.15 of the Management Agreement for the Gusman Theater and Section 22. 13 of the
Management Agreement of the Olympia Building, the City is providing One Hundred Eighty (180) days' notice to terminate
both Management Agreements, and
WHEREAS, the City Manager has extended and offer of early termination in 90 days via the "Termination Notice", and
WHEREAS, Olympia Center Inc. acknowledges that the financial conditions of the current environment caused by COVID-19,
have made fulfilling its fiduciary obligations to the property impossible beyond September 30, 2020,
THEREFORE, the Olympia Center Inc. Board of Directors accepts early termination for a date set at December 31, 2020 noting
and providing the following:
• The City understands and acknowledges that the goal and desire of Olympia is to maintain operational stability for the
benefit of the community and the historic Olympia Theater and Office Building
• That City Administration and Olympia jointly will agree on a plan and timetable for turnover to the City of Miami
• That the City will provide financial support to Olympia Center Inc. during the transition via reimbursements of
expenses or other methods deemed appropriate
• That City will assume payment of utilities and provide insurance coverage for the property as soon as feasibly possible
• That Olympia Center Inc. will remain available to assist the City of Miami with transition to the next operational plan
for the historic Olympia Theater and Office Building on a month -to -month basis subject to terms agreeable to both
Olympia and the City
• That Olympia Center Inc will continue to keep the Florida Department of State — Bureau of Historical Resources grant
18.h.sc.100.079 for the Olympia Theater Facade Restoration — Phase 1 active for as long as it is feasible
ADDITONALLY, the Olympia Center Inc. Board of Directors appoints Board Member Sergio Rok as representative liaison with
the City of Miami during the transition.
###
Recorded on September 02, 2020
Robert Geitner
Executive Director
Olympia Center Inc. I Olympia Theater
Theater: 174 East Flagler Street, Miami FL 33131, Office: 8 Southeast 2"d Avenue,#600, Miami FL 33131
Telephone: 305-374-2444 Fax: 305-374-0303 www.OlympiaTheater.org
Est. 1926 NATIONAL REGISTER OF HISTORICAL PLACES LISTED
NAIMiami
December 8, 2020
Via Email: MBurnsamiamigov.com
Mr. Mark Burns, Leasing Manager
City of Miami — Department of Real Estate & Asset Management
444 SW 2nd Avenue
Third Floor
Miami, FL 33130
Re: Olympia Theater
174 E Flagler St, Miami, FL 33131
Dear: Mark:
The following sets forth our recent discussions concerning a proposal to manage and
lease the referenced property:
Property:
Location: 174 E Flagler Street
Miami, FL 33131
Size/Type:
Owner:
Services Provided:
Olympia Theater, Apartments & Retail Stores.
Building: 88,180 square feet
Land: 21,477 square feet
Consisting of:
79 Apartments consisting of studios and 1 bedroom apartments
4 Retail stores
1 Theater, stage, and backstage
10 Former apartments, now dressing rooms for theater
operations.
City of Miami
Apartments:
Retail stores:
Theater:
Management & Leasing
Management & Leasing
Caretaker services to maintain physical asset.
No involvement with theater operations.
9655 South Dixie Highway, Suite 300 1
FEE STRUCTURE
Management Fees: Start-up Fee:
Monthly:
Expenses:
Staffing:
$3, 000.00
Five percent (5.00%) of gross collections
with a minimum fee of $5,000.00 per
month.
Reimbursement of all out of pocket expenses inclusive of all on -
site personnel, third party expenses including, but not limited to
postage, overnight delivery charges, copies, etc.
Senior Property Manager
Maintenance Engineer:
On -site administrative &
Leasing agent:
Part-time, off -site.
Full-time, on -site.
Part-time/20 hours per week.
Personnel Costs:
The following are estimated costs:
Senior Property Manager: No additional cost. Included in monthly property management
fee above.
Maintenance Person:
Inclusive of all direct costs, benefits and direct overhead. In
addition, an apartment is provided on -site rent-free.
On -site Admin & Leasing: Up to $20.00 per hour.
Burden Percentage:
Leasing Fees:
Apartments:
Retail Stores:
Estimated at 27.50%.
$500.00 per unit for each new lease or renewal executed.
Six percent (6.00%) of the gross rent generated during the
primary lease term with a minimum fee of $3,000.00 per lease.
Construction Management:
Manager shall be paid a construction management fee equal to five percent (5.00%) of
the total construction cost of each individual job. Owner shall pay all costs incurred in the
performance of the construction management services by Manager, including the
payment of all such architects, engineers, designers, space planners, general contractors
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and subcontractors hired by Manager, on behalf of Owner, as are reasonably necessary
to complete the construction, repairs or renovation required at the Property.
This letter is intended as an expression of intent; it does not create any binding obligation
on either party. Either party may terminate negotiations at any time for any reason without
liability to the other party, and ,(iii) any party proceeding on the basis of this letter (whether
with or without the knowledge of the other party) is doing so at its sole risk. obtained.
Sincerely,
Jeremy S. Larkin
C.E.O.
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Build -to -Suit
Buy -Out
CAM Reconciliation
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Expert Witness
Feasibility Analysis
Financial Analysis
Lease & Utility Audits
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Location Benefits Analysis
Market Research
Project Management
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Site Location Modeling
Strategic Planning
Tax Appeal
Title / Escrow / Survey
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Asset Services
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Build -to -Suit / Construction
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Development
Green / LEEDT"" Consultation / Sustainability
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Troubled Assets/Receiverships
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13
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Locations
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15
NAMiami
NAI Miami Commercial Real Estate Services
9655 South Dixie Hwy Suite 300
Miami, Florida USA 33156
+1 305 938 4000
naimiami.com
List of Services
Corporate and Investment Services
1031 Exchange
Acquisition / Disposition
Appraisal & Valuation
Auction Services
Capital Markets
Due Diligence Management
Financing
Leasing Agency / Landlord Representation
Market Analysis
Net Lease Transactions
Portfolio Review
Property Marketing
Relocation / Move Management
Sale/Leaseback Transactions
Site Selection
Subleasing
Tenant Representation
NAIMiami
Advisory & Consulting Services
Acquisition / Disposition
Build -to -Suit
Buy -Out
CAM Reconcilation
Capital Markets
Cross-Border/International Consulting
Distribution Logistics
Expert Witness
Feasibility Analysis
Financial Analysis
Lease & Utility Audits
Lease Administration
Location Benefits Analysis
Market Research
Project Management
Property Management
Site Location Modeling
Strategic Planning
Tax Appeal
Title / Escrow / Survey
Valuation & Appraisals
Asset Services
Asset Management
Asset Optimization
Build -to -Suit / Construction
Corporate Facilities Management
Development
Green / LEEDT" Consultation / Sustainability
Management
Property Management
Trade Credits
Troubled Assets/Receiverships
Workouts & Restructuring
9655 South Dixie Highway Suite 300
Miami, Florida USA 33156
+1 305 938 4000
naimiami.com
As amember Ofthe wOrld'Slargest commercial real estate
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NAMiami
9655 South Dixie Hwy Suite 300
Miami, Florida USA 33156
+1 305 938 4000
naimiami.com