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HomeMy WebLinkAboutCRA-R-25-0035 MemorandumSEOPW Board of Commissioners Meeting June 26, 2025 SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY INTER -OFFICE MEMORANDUM To: Board Chair Christine King Date: July 9, 2025 and Members of the CRA Board File: 17793 From: James McQueen Executive Director Subject: Authorizing Tenant Improvement Grant and Sub -Lease Agreement with Jitterflix, LLC. Enclosures: File # 17793 - Exhibit A File # 17793 - Backup File # 17793 - Notice to the Public BACKGROUND: A Resolution of the Board of Commissioners ("Board") of the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA"), with attachment(s), by a four -fifths (4/5ths) affirmative vote, after an advertised public hearing, ratifying, approving, and confirming the Executive Director's recommendation and finding, attached and incorporated herein as Exhibit "A," that competitive negotiation methods and procedures are not practicable or advantageous, pursuant to Sections 18-85 and 18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), and waiving said procedures, authorizing the issuance of a Tenant Improvement Grant, in an amount not to exceed Two Hundred Thousand Dollars and Zero Cents ($200,000.00), ("Funds"), to Jitterflix, LLC, a Florida Limited Liability Company ("Jitterflix"), with principal address at 5840 Corporate Way, Suite 250, West Palm Beach, Florida 33407, for tenant space improvements ("Purpose") to the commercial space located at 101 Northwest 8th Street, Unit 102, Miami, Florida 33136 ("Tenant Space"), authorizing the Executive Director to disburse funds, at his discretion, on a reimbursement basis or directly to vendors, upon presentation of invoices and satisfactory documentation, subject to the availability of funding, further pursuant to Sections 163.370 and 163.380 Florida Statutes, selecting Jitterflix as the sole proposer, for the Tenant Space, further authorizing the Executive Director to negotiate and execute a commercial sub -lease agreement ("Sub -lease") with Jitterflix, for an initial three (3) year term, at a total base rent of One Dollar and Zero Cents ($1.00) per square foot annually, plus the proportionate share of real estate taxes, insurance and common area maintenance (CAM) charges, with option to renew for a term of years not to exceed 2031, all -in forms acceptable to Counsel, for the Purpose stated herein. The SEOPW CRA is currently leasing approximately 1,040 SF of commercial/retail space at 101 Northwest 8th Street, Unit 102, Miami, Florida 33136 ("Tenant Space"), subject to a ten (10) year lease agreement with Noxxen Lyric, LLC, a Florida Limited Liability Company. The Tenant Space is within a two-story retail and office building complex, commonly referred to as "Lyric Point," located at 101 Northwest 8th Street, Miami, Florida 33136 ("Premises"). In order to attract and accommodate prospective commercial tenants, the SEOPW CRA has completed vanilla box build -out improvements to the Tenant Space. Pursuant to Sections 163.370 and 163.380 Florida Statutes, the SEOPW CRA issued a public notice on April 17, 2023, wherein the SEOPW CRA sought proposals for parties interested in leasing the Tenant Space. Jitterflix, LLC, a Florida Limited Liability Company ("Jitterflix") submitted the only proposal for the Tenant Space and seeks to relocate its business to expand its photography studio operations. Jitterflix is currently located at 5840 Corporate Way, Suite 250, West Palm Beach, Florida 33407. If awarded, Jitterflix has requested assistance with tenant improvements, in order to attract families and individuals of all backgrounds to the community. In anticipating the need to provide assistance, the Board, by Resolution No. CRA-R-25-0021, passed and adopted on April 24, 2025, authorized the SEOPW CRA to establish the Tenant Improvement Grant Initiative, in a total amount not to exceed One Million Three Hundred Ninety Thousand Dollars and Zero Cents ($1,390,000.00) for grants to prospective tenants, who are awarded one of the SEOPW CRA's leased commercial spaces at the Premises. This Resolution does not commit any additional funding beyond what was previously authorized by the Board in adopting Resolution No. CRA-R-25-0021. It is recommended that Board approve and adopt the attached Resolution, authorizing the issuance of a Tenant Improvement Grant, in an amount not to exceed Two Hundred Thousand Dollars and Zero Cents ($200,000.00) to Jitterflix, as well as authorizing the Executive Director to negotiate and execute a Sub- lease with Jitterflix for the Purpose stated therein. JUSTIFICATION: Pursuant to Section 163.340(9), Florida Statutes (the "Act") community redevelopment means "undertakings, activities, or projects of a ... community redevelopment agency in a community redevelopment area for the elimination and prevention of the development or spread of slums and blight...." Section 163.370, Florida Statutes authorizes the SEOPW CRA to enter into [sub -]leases for property within the Redevelopment Area. Section 163.380, Florida Statutes authorizes the SEOPW CRA to "lease, dispose of, or otherwise transfer real property or any interest therein" acquired within the Redevelopment Area "to any private person ... and may enter into [commercial] contracts" in order to "assist in preventing the development or spread of future slums or blighted areas. Section 2, Goal 4 of the 2018 Southeast Overtown/Park West Community Redevelopment Agency Plan Update (the "Plan") lists the "creat[ion of jobs within the community" as a stated redevelopment goal. Section 2, Goal 5 of the Plan lists the promotion of the Redevelopment Area "as a Cultural and Entertainment Destination ... that is attractive to families and individuals of all backgrounds" as a stated redevelopment goal. Section 2, Goal 6 of the Plan focuses on "[i]mproving the [q]uality of [I]ife for residents" as a stated redevelopment goal. Section 2, Principle 4 of the Plan reinforces that a "variety in employment opportunities" be made available to residents within the Redevelopment Area as a stated redevelopment principle. Page 2 of 8 Lastly, Section 2, Principle 6 of the Plan insists that local businesses be promoted in order to "improve the neighborhood economy" and "expand the economic opportunities of present and future residents and businesses" as a stated redevelopment principle. FUNDING: $200,000 is to be allocated from Other Grants and Aids - Account No. 1005 0.920101.8 83 000.0000.00000. Note: Said funds were previously allocated by Resolution No. CRA-R-25-0021, and therefore, no new funding is being committed by this Resolution. Page 3 of 8 AGENDA ITEM FINANCIAL INFORMATION FORM SEOPW CRA CRA Board Meeting Date: June 26, 2025 CRA Section: Brief description of CRA Agenda Item: Authorizing a grant in the amount of $200,000.00 to JitterFlix LLC-101 NW 8th Street, Unit 102, Miami FL 33136. Project Number YES, there Account Code: (if applicable): are sufficient funds in Line Item: 10050.920101.883000.0000.00000 Amount: $ 2 0 0, 0 0 0.0 0 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 6/17/2025 Miguel A Valentin, ririarice Of;cer 6/17/2025 Page 4 of 8 Southeast Overtown/Park West Community Redevelopment Agency File Type: CRA Resolution Enactment Number: CRA-R-25-0035 File Number: 17793 Final Action Date:6/26/2025 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING, ATTACHED AND INCORPORATED AS EXHIBIT "A," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS, PURSUANT TO SECTIONS 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CODE"), AND WAIVING SAID PROCEDURES, AUTHORIZING THE ALLOCATION OF GRANT FUNDS, IN AN AMOUNT NOT TO EXCEED TWO HUNDRED THOUSAND DOLLARS AND ZERO CENTS ($200,000.00) ("FUNDS"), TO JITTERFLIX, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("JITTERFLIX"), FOR TENANT SPACE IMPROVEMENTS ("PURPOSE") AT 101 NORTHWEST 8TH STREET, UNIT 102, MIAMI, FLORIDA 33136 ("TENANT SPACE"); AUTHORIZING THE EXECUTIVE DIRECTOR TO DISBURSE THE FUNDS, AT HIS DISCRETION, ON A REIMBURSEMENT BASIS OR DIRECTLY TO VENDORS, UPON PRESENTATION OF INVOICES AND SATISFACTORY DOCUMENTATION, SUBJECT TO THE AVAILABILITY OF FUNDING; FURTHER PURSUANT TO SECTIONS 163.370 AND 163.380 FLORIDA STATUTES, SELECTING JITTERFLIX AS THE SOLE PROPOSER, FOR USE OF THE TENANT SPACE; AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A SUB -LEASE AGREEMENT ("SUB -LEASE") WITH JITTERFLIX, IN A FORM ACCEPTABLE TO COUNSEL, FOR AN INITIAL THREE (3) YEAR TERM, AT A TOTAL BASE RENT OF ONE DOLLAR AND ZERO CENTS ($1.00) PER SQUARE FOOT ANNUALLY, PLUS THE PROPORTIONATE SHARE OF REAL ESTATE TAXES, INSURANCE AND COMMON AREA MAINTENANCE (CAM) CHARGES, WITH OPTION TO RENEW FOR A TERM OF YEARS NOT TO EXCEED 2031; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL OTHER NECESSARY DOCUMENTS, 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 ("Redevelopment Area") in accordance with the 2018 Updated Southeast Overtown/Park West Redevelopment Plan (the "Plan"); and Page 5 of 8 WHEREAS, Section 163.370, Florida Statutes authorizes the SEOPW CRA to enter into [sub - ]leases for property within the Redevelopment Area; and WHEREAS, Section 163.380, Florida Statutes authorizes the SEOPW CRA to "lease, dispose of, or otherwise transfer real property or any interest therein" acquired within the Redevelopment Area "to any private person ... and may enter into [commercial] contracts" in order to "assist in preventing the development or spread of future slums or blighted areas"; and WHEREAS, Section 2, Goal 4 of the Plan encourages the "creat[ion of] jobs within the community" as a stated redevelopment goal; and WHEREAS, Section 2, Goal 5 of the Plan lists the promotion of the Redevelopment Area "as a Cultural and Entertainment Destination ... that is attractive to families and individuals of all backgrounds" as a stated redevelopment goal; and WHEREAS, Section 2, Goal 6 of the Plan focuses on "improv[ing] the quality of life for residents" as a stated redevelopment goal; and WHEREAS, Section 2, Principle 4 of the Plan reinforces that a "variety in employment opportunities" be made available to residents within the Redevelopment Area as a stated redevelopment principle; and WHEREAS, Section 2, Principle 6 of the Plan insists that local businesses be promoted in order to "improve the neighborhood economy" and "expand the economic opportunities of present and future residents and businesses" as a stated redevelopment principle; and WHEREAS, on April 15, 2021, the Board of Commissioners adopted Resolution CRA-R-21- 0005, authorizing the SEOPW CRA and Noxxen Lyric, LLC, a Florida limited liability company, to execute a ten (10) year lease for four (4) commercial spaces, containing approximately 7,000 total square feet of space ("Leased Spaces"), at "Lyric Point," located at 101 Northwest 8th Street, Miami, Florida 33136 ("Premises"), immediately adjacent to the historic Lyric Theatre Complex; and WHEREAS, on April 15, 2021 and July 22, 2021, respectively, the Board of Commissioners adopted Resolutions CRA-R-21-0006 and CRA-R-21-0025, authorizing funding, in an amount not to exceed Fifty Thousand Dollars and Zero Cents ($50,000.00), for costs associated with architectural and engineering services for the Leased Spaces, and subsequently authorizing buildouts of the Leased Spaces, in an amount not to exceed Seven Hundred Thousand Dollars and Zero Cents ($700,000.00); and WHEREAS, on April 17, 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 sub -lease the Leased Spaces; and WHEREAS, one (1) unit within the Leased Spaces is addressed 101 Northwest 8th Street, Unit 102, Miami, Florida 33136 and is approximately 1,040 square feet ("Tenant Space"); and WHEREAS, the SEOPW CRA received one (1) proposal for the Tenant Space; and WHEREAS, Jitterflix, LLC, a Florida Limited Liability Company, with a principal address at 5840 Corporate Way, Suite 250, West Palm Beach, Florida 33407 ("Jitterflix"), where it currently operates its photography studio business, submitted the only proposal for the Tenant Space and seeks to relocate its business to expand its photography studio operations; and Page 6 of 8 WHEREAS, Jitterflix has requested assistance with tenant improvements of the Tenant Space, if awarded; and WHEREAS, on April 22, 2025, the Board of Commissioners, adopted Resolution No. CRA-R- 25-0021, which established the Tenant Improvement Grant Initiative, which allocated a total amount not to exceed One Million Three Hundred Ninety Thousand Dollars and Zero Cents ($1,390,000.00), to provide tenant improvement grants for prospective SEOPW CRA tenants at the Premises; and WHEREAS, the Executive Director seeks to negotiate and execute a Sub -lease Agreement ("Sub- lease") with Jitterflix, for an initial three (3) year term, at a total base rent of One Dollar and Zero Cents ($1.00) per square foot annually, plus the proportionate share of real estate taxes, insurance and common area maintenance (CAM) charges, with option to renew for a term of years not to exceed 2031, including any and all documents necessary, all -in forms acceptable to Counsel, and award a grant, in an amount not to exceed Two Hundred Thousand Dollars and Zero Cents ($200,000.00) ("Funds"), subject to funding availability, for tenant improvements at the Tenant Space ("Purpose"); and WHEREAS, the SEOPW CRA has dutifully complied with Sections 163.380(2) and 163.380(3)(a) Florida Statutes; 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, attached and incorporated herein as Exhibit "A," it is in the SEOPW CRA's best interest for the Board of Commissioners to authorize, by an affirmative four -fifths (4/5ths) vote, a waiver of competitive sealed bidding procedures, pursuant to Sections 18-85 and 18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), as adopted by the SEOPW CRA, to allocate said Funds, subject to availability, and to authorize the Executive Director to negotiate and execute the Sub -lease, including any and all agreements necessary, all -in forms acceptable to Counsel, for said Purpose; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY: 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. Pursuant to Sections 18-85 and 18-86 of the City Code, as adopted by the SEOPW CRA, by a four -fifths (4/5th) affirmative vote, after an advertised public hearing, the Executive Director's recommendation and written findings, attached and incorporated herein as Exhibit "A," that competitive negotiation methods and procedures are not practicable or advantageous to the SEOPW CRA, and waiving the requirements for said procedures are hereby ratified, approved, and confirmed. Section 3. The Executive Director is hereby authorized to disburse the Funds, at his discretion, on a reimbursement basis or directly to vendors, upon presentation of invoices and satisfactory documentation, subject to the availability of funding and the Tenant Improvement Grant is hereby authorized for the Purpose stated herein. Section 4. Pursuant to Sections 163.370 and 163.380 Florida Statutes, Jitterflix is hereby selected as the sole proposer of the Tenant Space. Section 5. The Executive Director is hereby authorized to negotiate and execute a Tenant Improvement Grant agreement and Sub -lease, for an initial three (3) year term, at a total base rent of One Page 7 of 8 Dollar and Zero Cents ($1.00) per square foot annually, plus the proportionate share of real estate taxes, insurance and common area maintenance (CAM) charges, with option to renew for a term of years not to exceed 2031, including any and all documents necessary, all -in forms acceptable to Counsel, with Jitterflix for the Purpose stated herein. Section 6. 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 the same with the City Clerk. Section 7. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Br.wp-retaff'Counsel 6/17/2025 Page 8 of 8