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HomeMy WebLinkAboutReso 2023-3459RESOLUTION NO. 2023- '` ,� AN RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, RATIFYING A SECOND AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF SUNNY ISLES BEACH, FLORIDA, AND SUFFOLK CONSTRUCTION COMPANY, INC., ATTACHED HERETO AS EXHIBIT "A"; PROVIDING THE CITY MANAGER WITH THE AUTHORITY TO DO ALL THINGS NECESSARY TO EFFECTUATE THE TERMS OF THE SECOND AMENDMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Isles Beach, Florida ("City") own s property located at 18050 Collins Avenue, Sunny Isles Beach, which was formerly operated as a Tony Roma's restaurant ("Property"); and WHEREAS, Suffolk Construction Company, Inc. ("Suffolk") desired to rent, and the City desired to lease, a portion of the Property as a temporary construction office from the City; and WHEREAS, on July 21, 2022, via Resolution No. 2022-3376, the City Commission approved a lease agreement between the parties for a term commencing on July 23, 2022, and expiring on December 23, 2022, in an amount of Five Thousand Dollars ($5,000.00), per month, subject to the terms and conditions set forth in said lease agreement (the "Lease Agreement"); and WHEREAS, on September 15, 2022, via Resolution No. 2022-3403, the City Commission ratified a First Amendment to the Lease Agreement, providing that Suffolk shall pay rent in an amount of Ten Thousand Dollars ($10,000.00) per month, and may utilize additional space within the Property as set forth therein; and WHEREAS, on December 15, 2022, the City Commission authorized the City Manager to negotiate and execute a Second Amendment to the Lease Agreement with' Suffolk, for the purposes of extending the lease term and increasing the monthly rent; and WHEREAS, pursuant to the authority provided by the City Commission, the City Manager has negotiated and executed a Second Amendment to the Lease Agreement with Suffolk, extending the lease term to June 30, 2023, increasing the rent payable by Suffolk to Twenty Thousand Dollars ($20,000.00) per month, and further eliminating the limitations on the area that Suffolk may utilize within the Property, a copy of which is incorporated herein and attached hereto as Exhibit "A". NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA: Section 1. Incorporation of Recitals. The foregoing recital paragraphs are hereby ratified and confirmed as being true and the same are hereby made part of this Resolution. Section 2. Ratification of Second Amendment to the Agreement. The City Commission hereby ratifies the Second Amendment to the Lease Agreement between the City of Sunny Isles Beach and Suffolk Construction Company, Inc., attached hereto as Exhibit "A". @BCL@B40B5562.docx Page 1 of 2 Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 4. Effective Date. This Resolution shall become effective upon passage. PASSED AND ADOPTED upon this 19th d44of January 2023. Mauritio B�tancu� CMC, City Clerk LaMa Svechin, Mayor APPROVED AS TO FORM AND LEGAL SUFFICIENCY: ,a & -") Valerie Vicente, City Attorney L� Moved by: jCf�>r� �� Seconded by: Vote: Mayor Svechin Vice Mayor Viscarra Commissioner Joseph Commissioner Lama Commissioner Stuyvesant -� @BCL@B40B5562.docx /(Yes) (No) (Yes) (No) Yes) (No) id (Yes) (No) (Yes) (No) Page 2 of 2 oS S, NNY IS4FO SECOND AMENDMENT TO THE j' TRIPLE NET LEASE AGREEMENT BETWEEN THE CITY OF SUNNY ISLES BEACH ANDryNo SUFFOLK CONSTRUCTION COMPANY, INC. This Second Amendment to the Triple Net Leaseback Agreement between the CITY OF SUNNY ISLES BEACH ("Landlord") and SUFFOLK CONSTRUCTION COMPANY, INC. Tenant"), executed this j L- day of Jr—wo-1 , 2023, is made a part of the original Triple Net Leaseback Agreement dated July 22, 2022, as amended, between the Landlord and Tenant Lease"). The Landlord and Tenant hereby agree as follows: 1. EFFECTIVE DATE. The Effective Date of this Second Amendment shall be December 31, 2022. 2. AMENDING TERM. Section 1 of the Lease "Lease Term" is hereby deleted in its entirety, and the following language shall be substituted: Lease Term. This Lease shall commence on July 23, 2022 (the "Commencement Date"), and shall terminate on June 30, 2023, unless terminated earlier by either party by giving the other written notice of termination fourteen (14) days prior to the date the tenancy shall end (the "Termination Date"). On the Termination Date, the Tenant shall be required to immediately vacate the Property. 3. AMENDING SECTION 7.1, MONTHLY RENT. Section 7.1 of the Lease "Monthly Rent" is hereby amended to provide that the Monthly Rent, as defined therein, shall be Twenty Thousand Dollars ($20,000.00) per month. Except as specifically modified herein, all terms and conditions of Section 7.1 shall remain in full force and effect. 4. ELIMINATING SECTION 3.1, LIMITATIONS ON USE. Section 3.1 of the Lease Limitations on Use" is hereby deleted in its entirety. 5. AMENDING SECTION 10, ALTERATIONS. Section 10 of the Lease "Alterations" is hereby amended by substituting the term "Usable Area" with the term "Property." Except as specifically modified herein, all terns and conditions of Section 10 shall remain in full force and effect. 6. ELIMINATING EXHIBIT "B". Exhibit `B" of the Lease "Sketch of Property Depicting Usable Area" is hereby deleted in its entirety. 7. OTHER PROVISIONS REMAIN IN EFFECT. Except as specifically modified herein, all terms and conditions of the original Lease between the parties dated July 22, 2022, as amended, shall remain in full force and effect. 8. CONFLICTING PROVISIONS. The terms, statements, requirements, or provisions contained in this Second Amendment shall prevail and be given superior effect and priority over any conflicting or inconsistent terms, statements, requirements or provisions contained in any other document or attachment. SIGNATURE PAGE TO FOLLOW] Suffolk Lease Agreement — Second Amendment IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date mentioned above. WITNESS: Signature Print Name Suffolk Lease Agreement — Second Amendment SUFFOLK CONSTRUCTION COMPANY, CITY OF SUNNY ISLES BEACH BY: 15&-Ao l"— Stan Morri , City Manager APPROVED AP ORM AND LEG L OF CIE BY: Valerie Vicente, City Attorney CTIpN%, Signature O SEALS` jv-3„ 0;07- 9 1982 sgCHVS • Print Name, As its y • . 4y) CITY OF SUNNY ISLES BEACH BY: 15&-Ao l"— Stan Morri , City Manager APPROVED AP ORM AND LEG L OF CIE BY: Valerie Vicente, City Attorney ar 9i ..-qty 4r d • -1.0 '+ a OF StYM 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 DATE: January 19, 2023 RE: Ratification of Second Amendment to the Lease Agreement with Suf`0 Construction Company, Inc. RECOMMENDATION: Staff recommends approval of this Resolution. REASONS: Through Resolution No. 2022-3376, the City entered into a lease agreement with Suffolk Constructior Company, Inc for the use of the city owned vacant property formerly known as the Tony Roma's restaurant. The property had been left vacant without producing income. The initial lease was agreed to expire no later than December 31, 2022 and was for a portion of the premises that equated to approximately half of the available square footage. The initial term was limited as the City was in the process of issuing a Request For Proposals that was hoped to result in a new full-time tenant by the first of 2023. As those bids were rejected, the City Commission discussed and authorized the Citi Manager to enter into negotiations with Suffolk to extend their lease at the same rate as the anticipated restaurant revenue. Suffolk agreed to rent the entire premises at the increased rate of $20,000.00 per month with all of the same terms and conditions as the initial agreement to include their full financial responsibility for utilities and property taxes. Due to the expiration of the initial term, this amendment was executed and is before you now for ratification. ADDITIONAL INFORMATION: This new term will expire on June 30,2023 so that the City may continue the bidding process for a restaurant operator for this property while still providing for the same cancellation terms as the original agreement of 14 days notice if necessary. FUNDING SOURCE: No funding is required for approval of this item as it is a revenue generating agreement. Item Number: 10.F ATTACHMENTS: Resolution Second Amendment Item Number: 10.1'