2016-0421 Regular City Commission Meeting

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Summary Minutes:Regular City Commission Meeting March 17,2016 City or Sunny Isles Beach.Florida 106. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida,Approving a Second Amendment to the 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 Agreement; Providing for an Effective Date. Action: City Clerk Hines read the title, and City Manager Russo reported we have been in the process of negotiating a substantial change to the original lease that we entered into with the Passion Group. Originally the project was traditional restaurant and a banquet facility, since then they have come up and we have embraced the concept of the market place similar to the Italy market or Todd English in Manhattan. Ours will be better and will be called Mark-Eat. That entailed a substantial effort and increase in investment that the Passion Group will have to make with all the different high-end markets that will be coming in and having stations within the facility. City Manager Russo said it entailed a fairly sophisticated re-negotiation of the lease to include a substantially higher base rent, an escalating percentage on the marketplace side of it, going up to ultimately 6%of gross revenues, part of the base but with a much higher base to begin, what we started out of a base of 5240,000 a year onto the restaurant concept,we are going to be starting here at 5350.000 going to 5450.000 and a 5500.000 a year base with 51/2%, and then in 2017 we are starting at 6%. The traditional restaurant will remain at the 8% of gross. That is the significant changes, we have increased our time for notification should they not want to renew the lease because it has gotten to be a much bigger infrastructure to have to change if we ever had to make the move and wanted to market it. We required them to have, which is standard practice in the industry, a point of sale computer type system to record and capture the sales in a centralized system that is auditable. Public Speakers: None Commissioner Aelion said there is one thing he wants to clarify. We have garage parking with 372 spaces, in light of that this is not only going to be for the market space, more increase of day time on the parking, are we dividing the parking for use of that particular venue a number of spaces, and the other is public, or are we leaving everything open? City Manager Russo said primarily motivated by taxability purposes we will not be separating it like that but we will be working with the cooperation of the restaurant with an operator for a parking service at the garage. We will be requiring in a general way where employees will be parking, and others, but we will not be separating any specific areas designated for the private profit making entity in the garage but we do have a plan to have them in certain specific areas in category. Commissioner Aelion said the elevator can go from the 3rd to the ground floor, and so it should not be such an impact, but it is something to look at because it might be the City capacity plus for the use and the hours and all that. City Manager Russo said we also have the two other variables here, as you know the Commission has approved two development projects that have access to certain spaces but again it is not going to be specific designated spaces. Commissioner Aelion moved and Commissioner Goldman seconded a motion to approve the resolution. Resolution No. 2016-2537 was adopted by a voice vote of 5-0 in favor. 10