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HomeMy WebLinkAboutItem #13 - Discussion ItemTAXES: S: If the property becomes subject to ad valorem takes, the lessee will pay taxes; on the building and fixtures, The City will deduct from the rent any taxes attributable to they land This Masi a key issue and critical to Grove Kays The restaurant and fixtures area fixed asset, while the amount of t Ik on the land could be extremely subjccti.Vc on the part of the County Assessor, further, it is in the long-term interests of the City to keep public property from being assessed, IMPROVEMENTS 8Y CITY: The City will construct an access road from I3ayshorc to the leased pretni.ses When financing has been obtained, We will also provide water and sanitary sewer to the property line. The sublessee is responsible for landscaping and ornamental lighting. TERM: The Addendum extends the terra of the Grove Key lease for 30 years, which also covers the area subleased for the restaurant. This provision was the 1 xnpetus for Grove Key Marina, Inc. to consider a restaurant facility on this site. Their position is that the restaurant's successful operation is tied directly to the operation and maintenance of t,nr marina due to their proximity. OWNERSHIP OF IMPROVEMENTS: Miring the term of the lease the improvements shall be the property of the Company and the Sublessee. At the termination all real property becomes the property of the City, EASEMENTS: If the City initiates a tram or waterborne transit system the lease-prw:icles for access, to and across the property. TERMINATION: If at the end of 20 years the City, for some currently unforeseen reason requires the property, it is possible to, terminate the lease by paying "fair market value" on investments, improvements and projected profit. SUBLEASE Al.1 of the above provisions also apply to the sublease. In addition, the following points are highlighted: Mr. Grassie 3 tt4PkoVF.MfNTS t Sublessee shall construct restaurant etnd cocktail lounge of approv i mated y 32000 squares feet with hot less than 200 person dining capacity and 125 lounge capacity, Total cost for the improve- Monts shall not be less thtttl $600►00t). A walkway wi.l.l he built along the bay shore and the public will have free access to same: INSURANCE! Adequate _insurance holding the City harmless is incorporated. The site plan for this proposed development was reviewed by the Planning Advisory Board at their January 5, 1977 meeting. The Planning Advisory Board approved the concept unanimously and recommends the development to the City Commission, 1t is my rccommendat:ion that these leases he forwarded to the City Commission for their review and approval. LOCATION APPLICANT OWNER NtOUEST EXPLANATION BACKGROUND RECOMMENDATIONS -PLANNING DEPARTMENT -PLANNING ADVISORY BOARD 7pprdxitnately 2664 South Bayshote Drive Office of the City Manager, City of Miami, becenber ?, 1976 City of Miami, Florida Consideration of site and development plan approval on a proposed restaurant on City -owned property known as Grove Key Marina at Dinner Key as required by Section 4 (1), ARTICL1 XVIII-1 , (Public Parks and Recreational Use) P-it District The applicant, the City of Miatni, has leased certain City owned properties to Grove Key Marina, inc., whose business involves the servicing of boats and sale of boating accessories. As a part of the new lease agree- ment with the City, the Commission required the leasee to proceed with plans to construct a restaurant on the leased property. The City Commission in October 14, 1976 adopted Resolution 76-885 instructing the City administration to expedite the proposal to construct the major restaurant facility. A requisite to processing this matter requires the submission of a site and devel- opment plan since the property is zoned P-R (Public Parks and Recreational Use). Located immediately adjacent to the waters edge, the pro- posed restaurant facility is proposed to contain ten thousand (10,000) square feet of space on two levels, parking to accommodate 129 cars on two separate sites would provide for patron parking. Access to and from the restaurant would be from South Bayshore Drive via a new service road that would provide direct access with secondary access to be provided from Pan American Drive. Approval subject to the submission of detailed site, lands- caping and building plans for. Planning Department aroval The establishment of a major restaurant facility within the Dinner Key complex is in accordance with the aims of the Dinner Key Master Plan. Recommended approval, Resolution itP1113 3-77, January 5, 1977.. r: T C.3 ,7» r,f) A IV) 1 t-3 i \.1 c12:4.P.r.vr m 1- N r-1 T H f $ , it efillatui, honorable City Commission Attention! Mr. Joseph R. Grassi° City of Miami, Plorida Gentlemen! 77 .1 1. 4.* t 1 II (0 - Ail 22 klimuary 6, 1977 t SITE & DEVELOPMINT pLAN .t=0:elmEtsr..E.0 Approximately 2664 So, Bayshore City oWried property known as GroVe Key Marina The Miami Planning Advisory Board, at its tueetinq of :January 5, 1977, It:cict folloing an advertised nearing, adopted Resolution No. PAT 3-77 by a 7 to 0 vote Recommendin9 sile and duvc.lopment plan approval on a proposed restaurant on City-lie:fled property known as Grovt! 1:/-y Marina, at approximately 2664youth Bayshore Drive, Dinner Key, it:3 required by Section 4 (1), ARTICLE YVIII-1 (Public P:uks & Recreational Use) District. No (Jnjections ware rereivc:d in the A Pn:1,0110N to poi thin approval L red by the City A:•tor.-:ey's of:11,7e and sld.,;aitt(...1Icr ci, idcrati-n cn7 tho City cm CC : Lae,' pepart!w.!nt Planning Departil,ent Tc:nt,itivo City Cowinisnioh date: Sincurely, • • /-• Robert A. Davis, Director Department of Administration Planning and Zoning Boards January 26, 1977. ) Lf LA; ra.*:$104:•.c.1 4 HE3 FILE :la_ IC• • ••°.`f 1 it•i•-•"•.t dr) • . t ; : t _ `,Sw'.1C`Cl1.'i January 20, 1977 arsve Key teaee Richard t. Pos noen, bireetor Planning bepartment It response to the City Commission's concerns with the language in the Grove Key lease covering the access road and the possibility of the inclusion of bad debts in the promotional food section (paragraph 12 (e) )of the sublease we have taken the following actions: 1. The map indicating the area to be leased to Grove Key specifically excludes the access street thereby providing access across the street if needed. 2. We have included in the lease, language which excludes bad debts from item 12 (e) in the definition of gross receipts. These changes have been concurred in by Mr. Meredith and are now incorporated in the lease provisions RLF:jd attachment t tha aMauft Whig% would othetwise be payable i i a rdAACe th paragraph (A) above. reduction _tom tent to the City for ad valorem taxes aha11 not apply to ad valorem ta.tes attributable to the building, aqUipmeht bt fixtures of the Restaurant Vacility, which shall be paid by the Sublessee. 11. Rent Deposit On the date this Sublease is executed, the Sublessee shall pay to the Sublessor the sum of $9,000. as advance payment of the first three months minimum monthly rent due hereunder This amount shall be promptly returned to Sublessee in the event of failure of any of the conditions subsequent in paragraph 3 above to have occurred 12. Gross Receipts: The term "gross receipts" as used herein shall include all receipts,. whether collected or accrued, derived by the Sublessee from all busi- ness conducted upon or from the Premises, including but not limited to receipts from sale of food, beverages, alcoholic beverages, mer- chandise, or from any source whatsoever; excluding the following items: (a) Retail sales taxes, excise taxes, or related direct taxes on the consumer and collected by Sublessee; (b) Receipts from the sale of waste or scrap materials resulting from Sublessor's operations on the Premises (c) Receipts from the sale or trade-in value of any furniture, fixtures, or equipment used on the Premises; (d) The cost or value of meals or discounts given to employees of Sublessee; (e) The cost or value of food and beverage used for entertainment and business promition purposes by officers and employees of Sublessee; but in no instance shall this provision be construed to .include bad debts,