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Home My WebLink AboutCRA-R-23-0044 MemorandumSEOPW Board of Commissioners Meeting September 28, 2023 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: September 28, 2023 and Members of the CRA Board File: 14726 From: James McQueen Executive Director Subject: Lease agreement with 3 H Communications, Inc., for 1,016 square feet of commercial property at 1490 Enclosures: File # 14726 - Exhibit A BACKGROUND: A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") with attachment, authorizing the Executive Director to negotiate and execute a lease agreement ("lease"), attached as Exhibit "A" with 3 H Communications, Inc., a Florida for profit corporation for 1,016 square feet of commercial property at 1490 N.W. 3rd Avenue, Unit 111, Miami, FL, 33136. The SEOPW CRA currently owns "Overtown Plaza", a retail shopping center located at 1490 N.W. 3rd Avenue, Miami, FL 33136 which is home to several existing small businesses, and some larger known -brand establishments. Unit 111 in the Plaza was occupied by an entity that operated a "Metro by T-Mobile" retail store; the lease for which had recently expired and continued on a month -to -month basis. The previous operators of this space, a husband and wife, sought to sell the business due to personal reasons, and negotiations ensued with 3 H Communications, Inc., to maintain the Metro by T-Mobile presence at the Plaza, which is frequented by a significant amount of neighborhood residents. The proposed lease increases the rent amount to more favorable levels to the SEOPW CRA and in line with market levels, while supporting the goal to maintain national -level brand -name business establishments at the Plaza. On August 9, 2023, the SEOPW CRA issued a public notice declaring its intent to lease the premises, satisfying requirements of Florida Statutes 163.380(2) and 163.380(3)(a). JUSTIFICATION: The SEOPW CRA is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its redevelopment area in accordance with the 2018 Southeast Overtown/Park West Redevelopment Plan Update (the "Plan"). Section 2, Goal 2 of the Plan lists "expand[ing] the tax base using public -private partnerships" as a stated redevelopment goal. Section 2, Goal 4 of the Plan lists "create jobs within the community" as a stated redevelopment goal. Section 2, Goal 6 of the Plan lists "improv[ing] the quality of life for residents" as a stated redevelopment goal. Section 2, Principle 4, of the Plan provides that "[t]here must be variety in employment opportunities" as a stated redevelopment principle. FUNDING: No funding is allocated as part of this Resolution. FACT SHEET: Company name: 3 H Communications, Inc. Address (proposed): 1490 N.W. 3rd Ave, Unit 111, Miami, FL 33136 Funding request: None Term: 3 Years, annual base rent: $18,288 ($18.00 per SF), plus CAM Page 2 of 6 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: September 28, 2023 CRA Section: Approved by: Approval: 1 Executive Director 9/21/2023 Miguel A Valentin, :,lance Off;cer 9/21/2023 Page 3 of 6 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-23-0044 File Number: 14726 Final Action Date:9/28/2023 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S) AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE LEASE AGREEMENT ("LEASE"), ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "A" WITH 3 H COMMUNICATIONS, INC. ("TENANT"), A FLORIDA FOR PROFIT CORPORATION, FOR 1,016 SQUARE FEET OF COMMERCIAL PROPERTY, AT 1490 N.W. 3RD AVENUE, UNIT 111, MIAMI, FL 33136 ("PROPERTY"), FOR A THREE (3) YEAR INITIAL TERM, IN A FORM ACCEPTABLE TO GENERAL COUNSEL, INCLUDING ANY AND ALL DOCUMENTS NECESSARY, AT A TOTAL BASE RENT OF EIGHTEEN THOUSAND TWO HUNDRED EIGHTY-EIGHT DOLLARS AND ZERO CENTS ($18,288.00) ANNUALLY, WITH A FOUR PERCENT (4%) ANNUAL INCREASE AFTER THE FIRST LEASE YEAR, PROVIDING FOR INCORPORATION OF RECITALS, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its redevelopment area ("Redevelopment Area") in accordance with the 2018 Southeast Overtown/Park West Redevelopment Plan Update (the "Plan"); and WHEREAS, the SEOPW CRA is tasked with eliminating slum and blight pursuant to Chapter 163, Florida Statues; and WHEREAS, Section 163.370 Florida Statutes, authorizes the SEOPW CRA to lease properties within the Redevelopment Area to "eliminate obsolete or other uses detrimental to the public welfare; or otherwise to remove or prevent the spread of blight or deterioration"; and WHEREAS, Goal 2 of the Plan lists "expanding the tax base using public -private partnerships" as a stated redevelopment goal; and WHEREAS, Goal 6 of the Plan lists "improving the quality of life for residents" as a stated redevelopment goal; and WHEREAS, Principle 4 of the Plan provides that "employment opportunities be made available to existing residents ... " ; and WHEREAS, Principle 4, of the Plan provides that, there must be variety in employment opportunities and options located within the SEOPW CRA neighborhoods; and Page 4 of 6 WHEREAS, the SEOPW CRA currently owns "Overtown Plaza", a retail shopping center located at 1490 N.W. 3rd Avenue, Miami, FL 33136 ("Property"); and WHEREAS, 3 H Communications, Inc., a Florida for profit corporation ("Tenant") wishes to operate a "Metro by T-Mobile" retail store at Unit 111 within the Property ("Premises"); and WHEREAS, on August 9, 2023, in accordance with Florida Statutes 163.380(2) and 163.380(3)(a) the SEOPW CRA issued a public notice declaring its intent to lease Premises; and WHEREAS, SEOPW CRA and Tenant wish to enter into a lease agreement ("Lease") for the Premises; and WHEREAS, the Lease shall have an initial term of three (3) years at a total base rent of Eighteen Thousand Two Hundred Eighty -Eight Dollars and Zero Cents ($18, 288.00) annually, with a Four Percent (4%) annual increase after the first Lease year; and WHEREAS, the Board of Commissioners finds that authorizing this Resolution would further the SEOPW CRA redevelopment goals and objectives; and WHEREAS, based on the recommendation and findings of the Executive Director, it is in the SEOPW CRA's best interest for the Board of Commissioners to authorize the Executive Director to negotiate and execute any and all agreements necessary, all -in forms acceptable to the General Counsel with Tenant for the Premises; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY 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 herein as if fully set forth in this Section. Section 2. The Executive Director is authorized to negotiate and execute the Lease, attached an incorporated herein as Exhibit "A", including all necessary documents to effectuate said Lease, all in forms acceptable to the General Counsel, for a three (3) year initial term at a total base rent of Eighteen Thousand Two Hundred Eighty -Eight Dollars and Zero Cents ($18, 288.00) annually, with a Four Percent (4%) annual increase after the first Lease year. Section 3. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the Executive Director, or the Executive Director's designee, without need of public hearing, by filing a corrected copy of same with the City of Miami City Clerk. Section 4. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Page 5 of 6 4 ounsel 9/21 /2023 Page 6 of 6