Reso 2024-3761 - Laserfiche WebLink

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"rY Of 5'./K T, City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, Florida 33160 (305) 947-0606 City Hall (305) 949-3113 Fax MEMORANDUM TO: Honorable Mayor and City Commissioners VIA: Stan Morris, City Manager FROM: Susan Simpson, Deputy City Manager Genesis Cuevas, Purchasing Manager DATE: November 21, 2024 RE: Lease Agreement with Crema Espresso Bar for the Operation of a Cafe RECOMMENDATION: Staff recommends approval of this Resolution. REASONS: Through Resolution Number 2024-3721, the City Commission authorized the City Manager to enter into a lease agreement with Crema Espresso Bar to operate the city owned cafe space that is being built at 18050 Collins Avenue. Following extensive negotiations, the attached lease agreement is presented for your approval. This represents months of work to bring to you the best rental option for this space. With limited parking and other challenges, large scale restaurants such as the previous tenant was not an option. Approval of this item will secure a long-term revenue income to the City of no less than $1,619,179 over the next 10 years. For this project, the City utilized a broker that has the expertise in the industry to advertise this project to a larger and more sophisticated clientele. They reviewed initial inquiries and assisted us in sorting through the many proposals, knowing who is reliable and successful in the industry. They further assisted in negotiating the terms of the Letter of Interest which was the basis for the lease. As professional restaurant brokers, they know the market. They know what is trending, what is in demand, and what would provide a long-term benefit to the city. We fully vetted this agency and were satisfied with their work as they guided us through this very special market. For their services, and those of the broker for the lessee, the City as lessor is responsible for paying the broker fees. Broker fees are 3% of Item Number: 9.11 547