C7C - Approve Lease Extension and Expansion

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS APRIL 1, 2026 MEETING AND APPROVING THE PROPOSED TERMS OF A FIRST AMENDMENT TO THE AGREEMENT OF LEASE DATED SEPTEMBER 1, 1999 BETWEEN THE CITY OF MIAMI BEACH (OWNER), AND RK RIVANI, LLC, (TENANT) RELATING TO THE REAL PROPERTY LOCATED AT 1691 MICHIGAN AVENUE (PROPERTY), SAID TERMS PROVIDING, IN PRINCIPAL PART, FOR (I) LEASE TERM EXTENSION FOR TWO (2) TWENTY (20) YEARS OPTIONS; (II) AN INCREASE TO THE BASE RENT; (III) MARKET RENT ADJUSTMENTS CAPPED AT THIRTY-THREE PERCENT (33%) AT EACH OF THE FOUR (4) RENEWAL PERIODS; (IV) CONSTRUCTING APPROXIMATELY 47,000 SQUARE FEET OF OFFICE SPACE AND OTHER IMPROVEMENTS ABOVE THE PARKING GARAGE HAVING AN APPROXIMATE VALUE OF $50 MILLION (EXPANSION IMPROVEMENTS); (V) APPROVING A MAXIMUM BUILDING HEIGHT OF ONE HUNDRED (100) FEET; (VI) ADJUSTING THE TOTAL REQUIRED PARKING FOR THIS GARAGE TO FOUR HUNDRED TWENTY-FIVE (425) PARKING SPACES; AND (VII) ADDITIONAL PUBLIC BENEFITS OF ONE MILLION THREE HUNDRED THOUSAND ($1,300,000) ALL AS SET FORTH IN THE TERM SHEET ATTACHED AS AN EXHIBIT TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION; SUCH FIRST AMENDMENT TO BE SUBJECT TO A WAIVER OF THE FORMAL COMPETITIVE BIDDING REQUIREMENTS BY A FIVE-SEVENTHS (5/7TH) VOTE AS PERMITTED UNDER SECTION 82-39(A) OF THE CITY CODE AND TO BECOME EFFECTIVE ONLY UPON (A) THE APPROVAL BY A MAJORITY VOTE OF THE VOTERS IN A CITY-WIDE REFERENDUM AND (B) TENANT’S COMPLETION OF THE EXPANSION IMPROVEMENTS WITHIN A PERIOD TO BE SPECIFIED IN THE FIRST AMENDMENT; FURTHER, DIRECTING THE ADMINISTRATION TO NEGOTIATE A FIRST AMENDMENT WITH TENANT CONSISTENT WITH THE TERM SHEET, WITH THE FINAL FIRST AMENDMENT SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION .