2015-0115 Regular City Commission Meeting

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Summary Minutes:Regular City Commission Meeting January 15,2015 City of Sunny Isles Beach,Florida 10G. A Resolution of the City Commission of the City of Sunny Isles Beach,Florida,Approving the Gateway Park Restaurant Lease Agreement Between the City of Sunny Isles Beach and Fly Me to the Moon,LLC,in Substantially the Same Form Attached Hereto as Exhibit "A";Authorizing the Mayor to Execute Said Agreement;Authorizing the City Attorney and the City Manager to Do All Things Necessary to Effectuate the Terms of this Resolution; Providing for an Effective Date. Action: City Clerk Hines read the title,and City Manager Russo reported that this includes a traditional restaurant in part of the space and a high-end marketplace type setting with various vendors in the rest of it. Several months ago the City advertised an RFP and met with 15 to 20 different entities and we received two proposals,we ranked them,and we were able to negotiate a lease with the number one ranked entity, Fly Me to the Moon, for the operation of the approximately 15,500 square feet of enclosed restaurant space and 2,500 square feet of patio dining space built into the garage as part of the Gateway Park project. The Lease also includes the concession stand that is built into the garage complex which is accessed by the playground area and the water feature. He highlighted the terms of the Lease noting that it is similar to the lease we have with Tony Roma's. It is a 20-year lease with two five-year options. The rent is at 8% gross with the base of $20,000 a month. The restauranteurs are expected to spend approximately $3.4 Million in the build-out of this of which the City will contribute up to 36% which is to a maximum dollar amount of $1,250,000.00 or approximately 36% if they spend less than that. The City will end up owning the build-out and the fixtures that come along with that process. They will have 180 days to complete the improvements. Under normal conditions, if a restauranteur would come in, it would be after the City takes possession of the shell. We are hoping that we are able to do this timely to work in concert with our Contractor to hopefully expedite it. Public Speakers: None Vice Mayor Gatto said for clarification that the third party vendors we get to approve but we are not managing them on a day to day basis, and City Manager Russo said that is correct. They will be managed by the Lessee, Fly Me to the Moon. The concept they are talking about for the general public is two-fold, and this entity owns and operates three (3) restaurants in the Miami area, and a number of them in Spain. They have a concept of a moderately priced very attractive type restaurant, one of which is owned by the City of Miami what used to be the old Firehouse Restaurant. The other one is"Love is Blind"which is on South Bayshore and Brickell on the Bay, and the third one is in Coral Gables. That is going to be about 5,000 square feet. The remaining approximately 10,000 square feet is going to be,and there is a concept called`Gately",it is in major cities around the world. It is a high-end mixed marketplace, very integrated with all types of foods and options. Todd English is another one which does a similar concept. They are going to put this concept into this 10,000 square feet and that is where the third party vendors come in, that the City will have approval of but they will be managed and handled through the Lease. Commissioner Aelion said the $1,250,000.00 that the City is providing to improve the internal structure of the built,you created a grid,you calculated besides the base rent,the 8% is floating of course, and so what is your estimate of payback if a successful venture to the City of the$1,250,000.00? City Manager Russo said the payback there is that we will own the entire build-out, we will own the fixtures and the build-out of it from the moment it is 8