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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #12311 Date: 07/15/2022 Commission Meeting Date: 07/28/2022 Requesting Department: Department of Real Estate and Asset Management Sponsored By: District Impacted: District 2 Type: Resolution Subject: Amend Lease Agrmt. Grove Bay Investment Group Purpose of Item: A Resolution of the Miami City Commission authorizing the City Manager to negotiate and execute an Amendment to the Lease Agreement between the City of Miami and Grove Bay Investment Group, LLC in a form acceptable to the City Attorney. Amending the Lease to authorize the construction of temporary food and beverage establishments and related provisional structures within the location designated for a formal restaurant for a maximum of seven (7) years in exchange for increased percentage rent applicable to such provisional structures, with additional terms and conditions as more particularly set forth in the amendment. Background of Item: The City of Miami ("City") is the owner of certain real property located generally at 3385 Pan American Drive, Miami, Florida 33133 ("Property"); and Grove Bay Investment Group, LLC ("Grove Bay") was awarded Request for Proposal No. 12-13-001 - Lease of City -Owned Waterfront Property for Marina/Restaurant Uses ("RFP"). Pursuant to the RFP, the City and Grove entered into that certain Lease Agreement, effective as of October 24, 2013 ("Lease"), with respect to the Property. The Lease provides that Grove Bay shall construct a Formal Restaurant on a portion of the Property designated in Grove Bay's original proposal to the RFP and that the percentage rent applicable to the Formal Restaurant shall equal five percent (5%) of gross revenues therefrom. Grove Bay has requested that the City permit the construction of temporary food and beverage establishments and related provisional structures (collectively, "Provisional Structures") at the location of the Formal Restaurant for a maximum of seven (7) years prior to constructing the permanent Formal Restaurant ("Provisional Use Period"). Grove Bay has agreed to pay increased percentage rent for the Provisional Structures as follows: five percent (5%) of gross revenues up to ten million ($10,000,000), seven and one half percent (7.5%) of gross revenues between ten million ($10,000,000) and fifteen million ($15,000,000), and ten percent (10%) of gross revenues exceeding fifteen million ($15,000,000) (collectively, "Provisional Percentage Rent"). Budget Impact Analysis Item is Related to Revenue Item has NOT an Expenditure Item is NOT funded by Bonds Total Fiscal Impact: 0 Office of the City Attorney Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division OMNI Community Redevelopment Office of the City Attorney City Commission Legislative Division Office of the Mayor Office of the City Clerk OMNI Community Redevelopment Office of the City Attorney Office of the City Clerk Reviewed B Jacqueline Lorenzo Pedro Lacret Marie Gouin Larry M. Spring Arthur Noriega V Valentin J Alvarez Agency Victoria Mendez Nicole Ewan Valentin J Alvarez Mayor's Office City Clerk's Office Agency Victoria Mendez City Clerk's Office Department Head Review Budget Analyst Review Budget Review Assistant City Manager Review City Manager Review Legislative Division Review Isiaa Jones Approved Form and Correctness Completed Completed Completed Completed Completed Completed ACA Review Completed Meeting Completed Legislative Division Review Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Isiaa Jones ACA Review Approved Form and Correctness with Modification(s) Rendered Completed 07/15/2022 4:26 PM 07/15/2022 6:11 PM 07/18/2022 9:06 AM 07/18/2022 9:25 AM 07/18/2022 10:19 AM 07/18/2022 12:18 PM Completed 07/19/2022 8:02 PM 07/28/2022 9:00 AM 07/29/2022 5:18 PM 08/05/2022 1:57 PM 08/05/2022 2:15 PM Completed Completed 08/30/2022 8:54 AM City of Miami Legislation Resolution Enactment Number: R-22-0276 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 12311 Final Action Date:7/28/2022 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AMENDMENT TO THE LEASE AGREEMENT ("LEASE"), BETWEEN THE CITY OF MIAMI ("CITY") AND GROVE BAY INVESTMENT GROUP, LLC ("GROVE BAY"), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AMENDING THE LEASE TO AUTHORIZE THE CONSTRUCTION OF TEMPORARY FOOD AND BEVERAGE ESTABLISHMENTS AND RELATED PROVISIONAL STRUCTURES (COLLECTIVELY, "PROVISIONAL STRUCTURES") WITHIN THE LOCATION DESIGNATED FOR THE FORMAL RESTAURANT FOR A MAXIMUM OF SEVEN (7) YEARS IN EXCHANGE FOR INCREASED PERCENTAGE RENT APPLICABLE TO SUCH PROVISIONAL STRUCTURES; ALSO REQUIRING THAT A CERTIFICATE OF OCCUPANCY OR TEMPORARY CERTIFICATE OF OCCUPANCY FOR THE FORMAL RESTAURANT IS OBTAINED WITHIN TWO YEARS AFTER THE 7 YEAR TEMPORARY USE AUTHORIZATION PERIOD; WITH ADDITIONAL TERMS AND CONDITIONS AS MORE PARTICULARLY SET FORTH IN THE AMENDMENT. WHEREAS, the City of Miami ("City") is the owner of certain real property located at 3385 Pan American Drive, Miami, Florida 33133 ("Property"); and WHEREAS, Grove Bay Investment Group, LLC ("Grove Bay") was awarded Request for Proposal No. 12-13-001 - Lease of City -Owned Waterfront Property for Marina/Restaurant Uses ("RFP"); and WHEREAS, pursuant to the RFP, the City and Grove Bay entered into that certain Lease Agreement, effective as of October 24, 2013 ("Lease"), with respect to the Property; and WHEREAS, the Lease provides that Grove Bay shall construct a Formal Restaurant on a portion of the Property designated in Grove Bay's original proposal to the RFP and that the percentage rent applicable to the Formal Restaurant shall equal five percent (5%) of gross revenues therefrom; and WHEREAS, Grove Bay has requested that the City permit the construction of temporary food and beverage establishments and related provisional structures (collectively, "Provisional Structures") at the location of the Formal Restaurant for a maximum of seven (7) years prior to constructing the permanent Formal Restaurant ("Provisional Use Period"); and WHEREAS, within 2 (two) years after the Provisional Use Period Grove Bay shall also ensure that they obtain a Certificate of Occupancy or Temporary Certificate of Occupancy for the formal dining restaurant; and WHEREAS, Grove Bay has agreed to pay increased percentage rent for the Provisional Structures as follows: five percent (5%) of gross revenues up to ten million ($10,000,000), seven and one half percent (7.5%) of gross revenues between ten million ($10,000,000) and fifteen million ($15,000,000), and ten percent (10%) of gross revenues exceeding fifteen million ($15,000,000) (collectively, "Provisional Percentage Rent"); 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. The City Manager is authorized' to negotiate and execute an amendment to the Lease, in a form acceptable to the City Attorney, amending the Lease to authorize the construction of the Provisional Structures within the location designated for the Formal Restaurant for Provisional Use Period, and within 2 (two) years after the Provisional Use Period Grove Bay shall also obtain a Certificate of Occupancy or Temporary Certificate of Occupancy for the formal dining restaurant in exchange for the Provisional Percentage Rent, with additional terms and conditions as more particularly set forth in the Amendment. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, City Httor ey 7/19/2022 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, 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.