HomeMy WebLinkAboutCRA-R-24-0069 MemorandumOMNI Board of Commissioners Meeting
November 21, 2024
OMNI REDEVELOPMENT DISTRICT
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
Board Chair Damian Pardo Date: November 22, 2024
and Members of the CRA Board
Isiaa Jones
Executive Director
File: 16970
Subject: Termination of Lease Agreement
- 1401 Group, LLC
Enclosures: 16970 Build Cost Estimates
16970 Expenditures Analysis
BACKGROUND:
A Resolution of the Board of Commissioners of the Omni Redevelopment District Community
Redevelopment Agency ("CRA") authorizes the Executive Director to negotiate and execute a
Termination of Lease Agreement and Release of All Claims (the "Agreement") between the
CRA and 1401 Group, LLC ("Lessee"). The Agreement concerns approximately 5,400 square
feet of property located at 1401 North Miami Avenue, Miami, Florida (the "Property"), currently
used as a restaurant and entertainment facility. The CRA and Lessee desire to terminate the
current lease agreement, which expires on September 30, 2030. The Lessee has expended in
excess of $3,300,000.00 in improvements to the property. The CRA's consultants have
reviewed the lessee's expenditures and have determined that a reasonable value of the lessee
improvements to the location is $2,100,000.00. The CRA will allocate an amount not to exceed
$2,100,000.00 as payment for build -out and improvements at the Property undertaken by
Lessee and to terminate the remaining six years of the lease. The Executive Director requests
authority to execute the Agreement, General Release and any other necessary documents, in
forms acceptable to the General Counsel.
JUSTIFICATION:
Terminating the current lease and regaining access to the Property at 1401 North Miami Avenue
will allow for its activation and facilitate opportunities for new development, thereby enhancing
the area's visual attractiveness to businesses and residents, in line with the CRA
Redevelopment Plan's goals. This action supports the CRA's mission of carrying out community
redevelopment activities and projects within its Redevelopment Area.
FUNDING:
$2,100,000.00 allocated from OMNI CRA Reserve Account Number
10040.920501.549000.0000.00000 — "Other Current Charges and Obligations" .
City of Miami Page 2 of 4 File ID: 16970 (Revision:) Printed On: 9/15/2025
Omni
C R A
City of Miami
Legislation
OMNI CRA Resolution
CRA-R-24-0069
OMNI CRA
1401 N. Miami Avenue
Miami, FL 33136
www.miamicra.com
File Number: 16970 Final Action Date:11/21/2024
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE OMNI
REDEVELOPMENT DISTRICT COMMUNITY REDEVELOPMENT AGENCY ("CRA"),
AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A
TERMINATION OF LEASE AGREEMENT AND RELEASE OF ALL CLAIMS, IN A
FORM ACCEPTABLE TO THE GENERAL COUNSEL, BETWEEN THE CRA AND
1401 GROUP, LLC ("LESSEE"), FOR THE USE OF APPROXIMATELY 5,400
SQUARE FEET OF PROPERTY LOCATED AT 1401 NORTH MIAMI AVENUE, MIAMI,
FLORIDA ("PROPERTY") FOR A RESTAURANT AND ENTERTAINMENT FACILITY,
WITH TERMS AS SET FORTH IN THE TERMINATION AGREEMENT, ATTACHED
AND INCORPORATED HEREIN; FURTHER AUTHORIZING THE EXECUTIVE
DIRECTOR TO ALLOCATE AN AMOUNT NOT TO EXCEED TWO MILLION ONE
HUNDRED THOUSAND DOLLARS ($2,100,000.00) AS PAYMENT FOR BUILD -OUT
AND IMPROVEMENTS AT THE PROPERTY UNDERTAKEN BY LESSEE AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Omni Redevelopment District Community Redevelopment Agency
("CRA") is responsible for carrying out community redevelopment activities and projects within
its Redevelopment Area; and
WHEREAS, the CRA Redevelopment Plan at Section 4, Goal D/ Principals A-2, C-4 and
C-5 lists as a goal: "encourage the restoration of historic buildings and [enhance the area's
visual attractiveness to businesses and residents], by creating opportunities for new
development through improvements to the public realm"; and
WHEREAS, pursuant to CRA-R-13-0036, adopted on June 13, 2013, the CRA entered
into a lease agreement, dated November 4, 2013 and as subsequently amended pursuant to
Amendment 1 dated December 30, 2014, with 1401 Group, LLC. ("Lessee") for the use of
approximately 5,400 square feet as a restaurant and entertainment facility, located at 1401
North Miami Avenue, Miami, Florda ("Property") with a term expiring September 30, 2030; and
WHEREAS, the Lessee invested approximately Three Million Four Hundred Thousand
Dollars ($3,400,000.00) in construction, build -out and improvements at the Property; and
WHEREAS, Lessee and the CRA now wish to terminate the lease agreement; and
WHEREAS, the CRA desires to allocate an amount not to exceed Two Million One
Hundred Thousand Dollars ($2,100,000.00) to Lessee for enhancements to the Property; and
WHEREAS, the CRA and Lessee desire to amicably resolve any differences between
the parties and agree to enter into the Termination of Lease Agreement and a release of all
claims, in a form acceptable to General Counsel;
City of Miami Page 3 of 4 File ID: 16970 (Revision:) Printed On: 9/15/2025
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE OMNI REDEVELOPMENT DISTRICT 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 a
Termination of Lease Agreement and release of all claims from, in a form acceptable to the
General Counsel, between the CRA and Lessee, for the use of approximately 5,400 square feet
for a restaurant and entertainment facility.
Section 3. The Executive Director is authorized to allocate an amount not to exceed
Two Million One Hundred Thousand Dollars ($2,100,000.00) to Lessee for construction, build -
out, and improvements at the Property.
Section 4. This resolution shall become effective immediately upon its adoption.
APPROVED AS TO FORM AND CORRECTNESS:
ORG247 X.
III. ENERAL COUNSEL
City of Miami Page 4 of 4 File ID: 16970 (Revision:) Printed On: 9/15/2025