HomeMy WebLinkAboutReso 2005-769
RESOLUTION NO. 2005- 7~ q
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, AUTHORIZING THE CITY
MANAGER TO ISSUE A CHECK IN THE AMOUNT OF SIXTY-
FOUR THOUSAND DOLLARS ($64,000.00) IN SETTLEMENT OF
R.K. ASSOCIATES' DEMAND OF THE CITY OF SUNNY ISLES
BEACH TO PAY FOR THE REMOVAL OF INTERIOR WALLS,
FLOORING AND IMPROVEMENTS TO THE PRESENT CITY
HALL LEASED PREMISES AT 17070 COLLINS AVENUE;
SPECIFICALLY PROHIBITING ANY OTHER PAYMENTS;
PROVIDING THE CITY MANAGER WITH THE AUTHORITY
TO DO ALL THINGS NECESSARY TO EFFECTUATE THE
TERMS OF THIS AGREEMENT; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the Lessor (R.K. Associates) of the City Hall leased premises located at
17070 Collins Avenue has made a demand that the City of Sunny Isles Beach as Lessee pay for
removal of all interior improvements upon vacation ofthe premises; and
WHEREAS, the City is vacating the premises to relocate to the new Sunny Isles Beach
Government Center ("Government Center") located at 18070 Collins Avenue; and
WHEREAS, although the City maintains it has no obligation under the current lease to
remove such improvements, it wishes to part amicably with the Lessor.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Authorization to City Manager. The City Manager is hereby authorized to issue a
check based on the highest quote received to do the work in the amount of Sixty-Four Thousand
Dollars ($64,000.00) in settlement R.K. Associates' demand that the City pay for the removal of
interior walls, flooring and improvements to the leased premises at 17070 Collins Avenue upon
vacation of said premises.
Section 2. Prohibition of City Manager. The City Manager is specifically prohibited from
making any other payments in settlement of this demand.
Section 3. Further Authorization of City Manager. The City Manager is hereby authorized to
do all things necessary to effectuate the intent ofthis Resolution.
R200S-Katz Settlement For 17070 OfficesDoc
Page 1 of 2
Effective Date, This Resolution shall become effective upon adoption.
Section 4.
PASSED AND ADOPTED this 13th day of January 2005.
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APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
Moved by: Co~ l 'X"f)QrnA.r0
Seconded by: Y \Ct MlUjoY' Tti-)\-LtR
Vote: 5-0
Mayor Edelcup
Vice Mayor Thaler
Commissioner Brezin
Commissioner Goodman
Commissioner Iglesias
v (Yes)
-&L-(Y es)
----'.L (Yes)
~(Yes)
~(Yes)
_(No)
_(No)
_(No)
_(No)
_(No)
R2005-Katz SettlementDoc
Page 20f2
January 11, 2005
r~ .
l,~ornrnISStOn
NOi'rnon S. Edelcup
MOjO'-
LeNis 1.
Vice t\l1oyO!
Arnold Shevlin
RK Associates
17100 Collins Avenue
Sunny Isles Beach, Florida 33160
VIA HAND DELIVERY
REC~:'VED
Ros!}/n Brezin
Conlrnissioner
(jc)()dr-non
JAN 1 2 2005
- .
(...~ () rr: tYi i~: ::~ tU ll€: 1"
Re: Vacation of 17070 Collins Avenue ("Leased Premises")
City ot Sunny /s/e8 Beach
Office ot the CIty Manager
Danny Iqlesias
C:n:niiSSioner Dear Arnold:
J, Russ.: By letter dated December 28, 2004, RK Associates ("Lessor") offered that the City of
Sunny Isles Beach ("Lessee") could "write a check to RK and Associates" for the cost of
DC!rlilheissei removing walls, flooring, and improvements from the Leased Premises upon the expiration
ofthe lease agreement dated May 1, 1998, as amended. By letter dated January 4,2005, the
kine ,'" Hines City Manager, on behalf of the Lessee, accepted this offer with cost to be mutually agreed
upon at a later date. Based on several estimates from licensed contractors for the removal of
the aforesaid improvements, the City Manager offered $50,000.00 for the removal of the
improvements.
This Office is now advised that you have requested $90,000.00 based on an arbitrary
designation of three months' rent as the amount Lessor will accept for the removal of the
property and intend to hold Lessee for additional rent after the expiration of the lease
agreement until the improvements are removed, Up to this point, and in order to maintain
an amicable relationship with one of the substantial property owners of the City, the City
has been willing to settle this matter. However, because ofthis unconscionable demand the
City as Lessee is compelled to point out the following:
1. Your request that the City remove walls and return the leased premises to the original
space configuration is not a requirement under either the original lease or its amendments.
The lease agreement provides that: "{a}nything attached to the property including
attached to the ceilings, walls and floors (including any carpeting) will remain the
property of the Lessor and shall not he removedfrom the premises hy the Lessee. "(See,
paragraph 36 of original lease.) Moreover, the lease agreement provides that "Lessee shall
deliver to the Lessor the Leased Premises, all keys, locks thereto, and other fIXtures
connected therewith and all alterations and additions made to or upon the leased
premises, in good condition, damage hy fire or other casualty only excepted." (See,
paragraph 37 of original lease). It is clear that the City is required to return the leased
premises with all personal property removed but we have been talking about the removal of
ceilings, floors and walls.
2. Notwithstanding the foregoing, the City Manager has attempted to work out a resolution
with your company regarding the City's obligations upon the expiration of the lease
agreement. According to the lease agreement, the City is merely obligated to remove
personal property from the leased premises, minus any fixtures and leave the premises clean
and broom swept. As such, your request that the City pay $90,000 for the cost of removal
of that which under the lease we are required to leave anyway has no basis in fact or law.
3. Finally, your suggestion to the City Manager through the Zoning Director that the City
will be obligated to pay rent after the expiration of the lease agreement if the fixtures are
not demolished appears to be nothing more than an attempt to extort funds to which Lessor
has no entitlement under the lease. Clearly, unless Lessee remains on the leased premises,
Lessee is not obligated to pay nor is Lessor entitled to receive any additional rent after the
expiration of the lease agreement.
Having stated the legal obligations, nevertheless, the City remains optimistic that Lessor
and Lessee can workout a reasonable solution to a simple matter. In fact, the Manager is
willing to "write a check" in the amount of $64,000 which is the highest quote and will
more than adequately cover removal of that which the Lessee is not obligated to remove but
is willing to do in order that we may part on amicable terms.
Sincerely,
X ~a -Ic-~
v a: M, Dannheisser
cc: The Honorable City Commission
J Christopher J. Russo, City Manager
Jorge Vera, Zoning Director
RK- Follow-up to City to Reimburse RK for Work Ltr.
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