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�4" itFL�p" 4 <br />City of Sunny Isles Beach <br />18070 Collins Avenue <br />Sunny Isles Beach, Florida 33160 <br />(305) 947-0606 City Hall <br />(305) 949-3113 Fax <br />MEMORANDUM <br />TO: Honorable Mayor and City Commissioners <br />FROM: Stan Morris, City Manager <br />DATE: May 16, 2024 <br />RE: Approval of a Lease Agreement for the Leased Premises Located at 18590 <br />Collins Avenue <br />RECOMMENDATION: <br />Staff recommends adoption of this ordinance. <br />REASONS: <br />The vacant, city owned lot located at 18590 Collins Avenue, unofficially known as 'the ROHLIot',has <br />been used for the last several years by city contractors for staging for the Collins Avenue <br />undergrounding and street lighting projects. As this project is nearing completion, the lot is no longer <br />needed for that purpose. Asa vacant lot, the city has no immediate use for this space. <br />La Playa Beach Associates, LLC. is in need of an empty lot to develop a sales center for their St Regis <br />project and approached the city about the possibility of leasing the land. In consideration of a lease <br />agreement, they would donate trees, fencing and landscaping to improve the curb appeal. They would <br />also be responsible for all utilities and taxes while paying rent. This lease agreement is for an initial 42 <br />months that is approximately as long as the remaining Navarro lease. At the end of the initial term, the <br />city may be ready to develop the joint lots at which time the lease would terminate. If that is not the <br />case, there are renewal terms to extend the lease at the city's sole option. <br />I n its current condition, the lot could only be used for parking. The city would need to make considerable <br />time and financial investments to improve its current condition for that use. At our current parking <br />rates, the revenue derived from using it in this capacity is $5,000 monthly. The lease agreement <br />provides for rent in the amount of $5,000 monthly from effective date until TCO of the sales trailer is <br />issued at which time rent will increase to $10,000 monthly. The lease agreement provides for annual <br />CPI increases capped at 4%, late fees, insurance requirements, indemnification, and the turnover of a <br />Item Number: 9.6 <br />