HomeMy WebLinkAboutReso 2022-3289RESOLUTION NO. 2022- � F{J 1
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH,
FLORIDA, APPROVING A LETTER AGREEMENT WITH BEACH CLUB ACQUISITION
LLC, TERMINATING THE TRIPLE NET LEASE WITH THE CITY AND ACCEPTING THE
PROPERTY, AND ANY IMPROVEMENTS THEREON IN "AS IS" CONDITION;
AUTHORIZING THE CITY MANAGER TO EXECUTE THE LETTER AGREEMENT AND
UTILIZE THE IMPROVED STRUCTURE ON THE PROPERTY FOR A MUNICIPAL
PURPOSE AND TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS
RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on or about April 4, 2014, Beach Club Acquisitions, LLC ("Beach Club")
submitted an application to the City of Sunny Isles Beach, Florida ("City") requesting approval to
construct a temporary sales center office ("Improvements") at the property located at 215
185th Street, Sunny Isles Beach, Florida ("Property") for the project currently known as
Turnberry; and
WHEREAS, pursuant to Resolution 2014-2230, the City approved the application
submitted by Beach Club subject to certain conditions, including a requirement that Beach Club
remove the Improvements no later than sixty (60) days after Temporary Certificate of
Occupancy was issued for Turnberry; and
WHEREAS, by Zoning Resolution 14-Z-143 adopted July 31, 2014, the City Commission
approved the Turnberry project, which included an agreement by Beach Club to donate the
Property to the City in exchange for transferable of development rights ("TDRs"); and
WHEREAS, on July 29, 2016, pursuant to the aforementioned Resolution, the City
acquired title to the Property; and
WHEREAS, on the above referenced date, the City and Beach Club entered into a Triple
Net Leaseback Agreement ("Lease"), whereby Beach Club would lease the Property from the
City subject to the terms and conditions contained therein, including that the City shall be
deemed the owner of all alterations to the property, except for the Improvements constructed
on the Property; and
WHEREAS, the lease was amended on July 24, 2017, and again on September 9, 2019;
and
WHEREAS, the City and Beach Club now wish to terminate the Lease, however, the City
administration believes it would be in the best interest of the City to maintain the
Improvements on the Property so that it can be used for a municipal purpose; and
WHEREAS, Beach Club has agreed to surrender, and the City has agreed to accept, the
Property with the Improvements in "as is" condition, and in consideration, Beach Club shall pay
to the City One Hundred Fifty -Five Thousand Six Hundred Ten Dollars ($155,610.00); and
@BCL@FCOE7CA3.doc Page 1 of 2 107
WHEREAS, Beach Club shall also pay to the City One Hundred Fifty Thousand Dollars
($150,000.00) which amount represents past due rent due to the City for the period
commencing August 1, 2019, and ending January 31, 2022, pursuant to the Second Amendment
to the Lease dated September 9, 2019; and
WHEREAS, the City Commission of the City of Sunny Isles Beach believes that it is in the
best interest of the City to approve a letter agreement with Beach Club terminating the Lease,
providing for the payment of past due rent, and providing for the acceptance of the Property,
with the Improvements, in "as is" condition, so that the same can be used for a municipal
purpose, attached hereto as Exhibit "A" ("Letter Agreement").
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY
ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approving the Letter Agreement with Beach Club. The City Commission hereby
approves the Letter Agreement between the City and Beach Club Acquisition LLC, attached
hereto as Exhibit "A".
Section 2. Authorization of City Manager. The City Manager is hereby authorized to
execute the Letter Agreement attached hereto as Exhibit "A", and to do all things necessary to
effectuate this Resolution, including repurposing the Improvements for a municipal purpose.
Section 3. Effective Date. This Resolution will become effective upon adoption.
PASSED AND ADOPTED this 20th day of January 2022.
Dana Robin Goldman, Mayor
ATTEST: APPROVED AS TO FORM
LEG UFFICIENCY:
Mauric`io Betanicur, CMC, City Clerk Edward A. Dion, City Attorney
Moved by:yo Yr` � u 1� � Seconded by: �MvA6-S(090Z–
Vote:
Mayor Goldman
✓ (Yes)
(No)
Vice Mayor Viscarra
(Yes)
(No)
Commissioner Lama
7— (Yes)
(No)
Commissioner Rabinovich
(Yes)
(No)
Commissioner Stuyvesant
(Yes)
(No)
@BCL@FCOE7CA3.doc Page 2 of 2 108
January 2-8 , 2022
Via Regular U.S. Mail
Via E-mail: skassnfbdev.com
BEACH CLUB ACQUISITION, LLC
Attention: Sheryl Kass
19950 West Country Club Dive, 10'i' Floor
Aventura, Florida 33180
Re: Letter Agreement between City of Sunny Isles Beach ("City") and Beach Club
Acquisition, LLC ("Beach Club") (collectively, the "Parties") related to the termination of
the Triple Net Leaseback Agreement dated July 29, 2016 ("Lease") for the property located
at 215 185 Street, Sunny Isles Beach, F133160 ("Property")
Dear Ms. Kass:
This letter agreement between the City and Beach Club ("Agreement"), will confirm that
pursuant to Section 1 of the Lease, the Parties mutually agree to terminate the Lease effective
January 31, 2022 ("Termination Date"), subject to the following terms and conditions:
1. Beach Club shall vacate the property and surrender the keys to the City on or before the
Termination Date.
2. Notwithstanding anything to the contrary in the Lease or Resolution 2014-2230, in
consideration of Beach Club's payment of $155,610.00 to the City, Beach Club shall surrender,
and Landlord shall accept the surrender, of the Property in "as is" condition, inclusive of the
sales center currently constructed on the Property.
3. In addition to the sum set forth in Paragraph 1, Beach Club shall pay to the City
$150,000.00, which amount represents past due rent due to the City for the period
commencing August 1, 2019, and ending January 31, 2022, pursuant to the Second
Amendment to the Lease dated September 9, 2019.
4. Beach Club shall pay the sums set forth in Paragraphs 1 and 2 above on or before March 15,
2022. This Agreement shall constitute the entire agreement between the parties with respect
to the subject matter hereof, and it shall supersede all previous and contemporaneous oral and
written negotiations, commitments, agreements, and understandings relating hereto.
5. Any modification of this Agreement shall be effective only if in writing and signed by the
Parties to this Agreement.
6. This Agreement shall be effective upon execution by all of the parties hereto, and subject to
the approval of the City Commission.
Please sign and date your signature below to confirm your agreement with the above terms
and conditions.
1
Sincerely.
Stan Morris
Cite Manager
ACCEPTED BY BEACH CLUB ACQUISITION, LLC
Signatur
S-h_eLyI_Kass
Print Name
Authorized Signatory
Title
Date: 1L39/2922_
cc: Ed�yard Dion, City Attorney
Valerie Vicente. Depute City AttorneN
Susan Simpson. Assistant City Manager
S' ."F '7c
T vp
B� �F19 0;
t1
r} 0A $W A h
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
FROM: Stan Morris, City Manager
DATE: January 20, 2022
RE: Resolution to Amend Agreement with Beach Club Acquisitions, LL(
Regarding the Turnberry Sales Center
RECOMMENDATION:
This resolution is recommended for approval.
REASONS:
In 2014 Beach Club Acquisitions, LLC ("Beach Club") submitted an application to the City requestin,
approval to construct a temporary sales center office at the property located at 215 185th Street,
Sunny Isles Beach, Florida for the project currently known as Turnberry. Pursuant to the resolutior
approving the sales center, Beach Club agreed to remove the sales center once they obtained TCO for
the Turnberry project.
In 2016 the City acquired the property from Beach Club through a land donation in exchange fol
TDR's, and entered into a lease with Beach Club for lease of the subject property. In 2019 the IeasE
was amended to provide that Beach Club would pay $5,000 per month in rent.
The City and Beach Club now wish to terminate the lease, however, the City administration believes ii
would be in the best interest of the City to maintain the building that was utilized as the sales center
on the property so that it can be used for a municipal purpose.
Following negotiations, Beach Club has agreed to surrender, and the City has agreed to accept, the
property with the associated building in "as is" condition, and in consideration, Beach Club will pay the
City $155,610.00.
Furthermore, Beach Club will pay all past due rent amounts, which total $150,000.00.
Item Number: 10.1
105
The proposed resolution provides for the approval of a letter agreement with Beach Club terminating
the lease, provides for the payment of past due rent, and provides for the acceptance of the property,
with the sales center building in "as is" condition, so that the same can be used for a municipal
purpose in consideration for the sums set forth above. The resolution further authorizes the City
Manager to execute the letter agreement and to do all things necessary in furtherance of this
resolution.
FUNDING SOURCE:
The revenue generated from this agreement will fund the renovations necessary to convert this to a
facility for community programming. On-going operational expenses will be requested in the next
fiscal year budget.
ATTACHMENTS:
Resolution
Item Number: 10.1
106