HomeMy WebLinkAboutCRA-R-24-0072 MemorandumSEOPW Board of Commissioners Meeting
November 21, 2024
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY
INTER -OFFICE MEMORANDUM
To: Board Chair Christine King Date: November 22, 2024
and Members of the CRA
Board File: 16956
From: James McQueen
Executive Director
Subject: Lease Agreement and CRA Buildout
at Block 55
Enclosures: File # 16956 - Exhibit A
File # 16956 - Exhibit B
BACKGROUND:
A Resolution of the Board of Commissioners of the Southeast Overtown/Park West Community
Redevelopment Agency ("Board"), with attachment(s), authorizing the Executive Director to execute a
Lease Agreement ("Lease"), in substantially the form attached as Exhibit "A," with Block 55 Org Owner
LLC, a Florida limited liability company ("Landlord"), where the Landlord currently has access to 1,000
leasable square feet of space of the Building ("Premises"), situated on the ground floor of an eighteen (18)
level mixed -use building located at 249 N.W. 6th Street, Miami, Florida 33136 for a term of ten (10) years
from commencement, at a total base rent of Twenty Thousand Dollars and Zero Cents ($20,000.00)
annually, with a Five Percent (5%) increase after the first lease period ("Purpose"); further authorizing the
expenditure of funds in the amount of Four Hundred Twenty -Eight Thousand Three Hundred Ninety -One
Dollars and Sixty -Three Cents ($428,391.63) ("Funds") for estimated construction costs related to the
SEOPW CRA build out, attached and incorporated herein as Exhibit "B."
It is recommended that the Board approve and adopt the attached Resolution, authorizing the execution of
the Lease and allocation of Funds to Block 55 for the Purpose stated herein.
JUSTIFICATION:
Pursuant to Section 163.370, Florida Statutes authorizes the SEOPW CRA to enter into leases for
property within the redevelopment area.
Section 2, Goal 2 of the 2018 Updated Southeast Overtown/Park West Community Redevelopment
Agency Plan (the "Plan") authorizes the SEOPW CRA to leverage public -private partnerships to create
viable opportunities within the redevelopment area.
Section 2, Goal 6 of the Plan authorizes the SEOPW CRA to improve the quality of life for residents
within the redevelopment area.
Section 2, Principle 4 of the Plan authorizes the SEOPW CRA to create employment opportunities within
the neighborhood, so that they be made available to existing residents within the redevelopment area.
FUNDING:
Funds to be allocated from the Rentals and Leases — Account No. 10050.920101.544000.0000.00000 is as
follows:
$20,000.00, annually for ten (10) year term.
Funds to be allocated from the Constructions in Progress — Account No.
10050.920101.67000.0000.00000 is as follows:
$428,391.63.
FACT SHEET:
Company name: Block 55 Org Owner, LLC
Address: 249 N.W. 6th Street, Miami, Florida 33136
Funding request: $20,000.00, annually for ten (10) year term; $428,391.63 for estimated construction
costs.
Scope/Summary: Authorization for execution of a Lease Agreement with Block 55 Org Owner, LLC
until 2034, with a Five Percent (5%) increase after the first lease period; and expenditure of funds for the
estimated construction costs of the SEOPW CRA's buildout space on the Premises.
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AGENDA ITEM
FINANCIAL INFORMATION FORM
SEOPW CRA
CRA Board Meeting Date: November 21, 2024
CRA Section:
Brief description of CRA Agenda Item:
Approving rescission of CRA-R-24-0065 and new resolution to clarify terms pertaining
to the lease and construction buildout.
Project Number
YES, there
Account Code:
(if applicable):
are sufficient funds in Line Item:
10050.920101.883000.0000.00000 Amount: $ 4 2 8 , 3 91 .6 3
NO (Complete the following source of funds information):
Amount budgeted in the line item: $
Balance in the line item: $
Amount needed in the line item: $
Sufficient funds will be transferred from the following line items:
ACTION
ACCOUNT NUMBER
TOTAL
Project No./Index/Minot Object
From
$
To
$
From
$
To
$
Comments:
Approved by:
Approval:
Executive Director 11/14/2024
Miguel A Valentin, r riarce Off;cer 11/14/2024
Page 3 of 6
Southeast Overtown/Park West
Community Redevelopment Agency
File Type: CRA Resolution
Enactment Number: CRA-R-24-0072
File Number: 16956 Final Action Date:11/21/2024
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST
OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW
CRA"), WITH ATTACHMENT(S), RESCINDING RESOLUTION NO. CRA-R-24-0065,
ADOPTED ON OCTOBER 24, 2024, IN ITS ENTIRETY AND ENACTING THIS NEW
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND
EXECUTE A LEASE AGREEMENT ("LEASE"), IN SUBSTANTIALLY THE ATTACHED
FORM, BETWEEN THE SEOPW CRA AND BLOCK 55 ORG OWNER, LLC, A
FLORIDA LIMITED LIABILITY COMPANY ("LANDLORD") FOR THE USE OF ONE
THOUSAND (1,000) SQUARE FEET OF RETAIL AND/OR COMMERCIAL SPACE
("PURPOSE") AT 249 N.W. 6TH STREET, SUITE 108, MIAMI, FLORIDA, 33136
("PROPERTY"), FOR A TEN (10) YEAR INITIAL TERM, AT A TOTAL BASE RENT OF
TWENTY THOUSAND DOLLARS AND ZERO CENTS ($20,000.00) ANNUALLY, WITH
A FIVE PERCENT (5%) ANNUAL INCREASE AFTER THE FIRST LEASE PERIOD,
ALLOCATING FUNDS FROM RENTALS AND LEASES ACCOUNT NO.
10050.920101.544000.0000.00000; FURTHER AUTHORIZING THE EXPENDITURE
OF FUNDS IN THE AMOUNT NOT TO EXCEED FOUR HUNDRED TWENTY-EIGHT
THOUSAND THREE HUNDRED NINETY-ONE DOLLARS AND SIXTY-THREE CENTS
($428,391.63) FOR CONSTRUCTION COSTS RELATED TO THE SEOPW CRA
BUILD OUT, AS ESTIMATED IN THE ATTACHED AND INCORPORATED EXHIBIT
"B," TO BE EXPENDED FROM THE CONSTRUCTIONS IN PROGRESS — ACCOUNT
NO. 10050.920101.67000.0000.00000; FURTHER AUTHORIZING THE EXECUTIVE
DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS
NECESSARY, INCLUDING ANY AND ALL AMENDMENTS THERETO, ALL IN FORMS
ACCEPTABLE TO COUNSEL FOR THE PURPOSE STATED HEREIN; PROVIDING
FOR THE INCORPORATION OF RECITALS AND 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 in accordance with the 2018 Updated Southeast Overtown/Park West Community Redevelopment
Plan ("Plan"); and
WHEREAS, Section 163.370, Florida Statutes authorizes the SEOPW CRA to enter into leases
for property within the Redevelopment Area; and
WHEREAS, Section 2, Goal 2, of the Plan provides justification to leverage public -private
partnerships to create viable opportunities within the Redevelopment Area; and
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WHEREAS, Section 2, Goal 6, of the Plan provides justification to improve the quality of life for
residents; and
WHEREAS, Section 2, Principle 4, of the Plan provides justification to create employment
opportunities within the neighborhood, so that they be made available to existing residents; and
WHEREAS, through Resolution No. CRA-R-24-0065, the Board of Commissioners authorized
the Executive Director to negotiate and execute a lease agreement ("Lease") with Block 55 Org Owner,
LLC, a Florida Limited Liability Company ("Landlord"); and
WHEREAS, the SEOPW CRA would like to rescind the previous resolution, in its entirety to
clarify the terms; and
WHEREAS, Landlord and the SEOPW CRA wish to enter into a Lease Agreement ("Lease"), in
substantially the attached form, for the property located at 249 N.W. 6th Street, Miami, Florida 3316
("Property")„ which requires construction and buildout for the SEOPW CRA's use; and
WHEREAS, the Property is currently owned by the Landlord and contains three (3) floors of
retail and office space, as well as eleven (11) floors of residential units, and four (4) levels of parking; and
WHEREAS, the Landlord has access to approximately Two Hundred Fifty Thousand (250,000)
square feet of floor area, in the aggregate, within the Property and would like to lease approximately One
Thousand (1,000) leasable square feet at Suite 108 ("Premises") to the SEOPW CRA for retail and/or
commercial use ("Purpose"); and
WHEREAS, the Lease shall have an initial term of ten (10) years at a total base rent of Twenty
Thousand Dollars and Zero Cents ($20,000.00) annually, with a Five Percent (5%) annual increase after
the first lease year; and
WHEREAS, the estimated construction costs, attached and incorporated herein as Exhibit "B,"
for the SEOPW CRA's buildout of the Premises are Four Hundred Twenty -Eight Thousand Three
Hundred Ninety -One Dollars and Sixty -Three Cents ($428,391.63); and
WHEREAS, pursuant to the terms of the Lease, the Landlord will be responsible for the
construction of the SEOPW CRA's buildout space; and
WHEREAS, the Board of Commissioners finds that authorizing this Resolution would further the
SEOPW CRA's 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 documents necessary, including any and all amendments, all in forms
acceptable to Counsel for the Purpose stated herein;
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.
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Section 2. Resolution No. CRA-R-24-0065, adopted on October 24, 2024, is hereby
rescinded in its entirety.
Section 3. The Executive Director is hereby authorized to negotiate and execute a Lease, in
substantially the form, with the Landlord for use of the Premises at the Property, for an initial term of ten
(10) years from commencement, at a total base rent of Twenty Thousand Dollars and Zero Cents
($20,000.00) annually, with a Five Percent (5%) annual increase after the first lease year, for the Purpose
stated herein.
Section 4. The Executive Director is further authorized to expend funds for the base and
annual rent, including the Five Percent (5%) annual increase after the first lease year, from the Rentals
and Leases Account No. 10050.920101.544000.0000.00000 to Landlord to further the Purpose stated
herein.
Section 5. The Executive Director is further authorized to expend funds from the
Constructions in Progress — Account No. 10050.920101.67000.0000.00000 to Landlord in the amount not
to exceed Four Hundred Twenty -Eight Thousand Three Hundred Ninety -One Dollars and Sixty -Three
Cents ($428,391.63) to complete the construction buildout of the Premises at the Property for the Purpose
stated herein.
Section 6. The Executive Director is hereby authorized to negotiate and execute any and all
additional documents necessary, including any and all amendments thereto, all in forms acceptable to
Counsel for the Purpose stated herein.
Section 7. This Resolution shall become effective immediately upon its adoption.
APPROVED AS TO FORM AND LEGAL SUFFICIENCY:
4
ounsel 11/14/2024
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