R7A - Extend Michigan Avenue Lease 106 Years

A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING FIRST READING, AS AUTHORIZED UNDER SECTION 1.03(B)(1) OF THE CITY CHARTER AND SECTION 82-37 OF THE CITY CODE, A FIRST AMENDMENT (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 FIRST AMENDMENT PROVIDING, IN PRINCIPAL PART, FOR (I) A LEASE TERM EXTENSION FOR TWO (2) ADDITIONAL TWENTY (20) YEAR OPTIONS FOR A TOTAL REMAINING TERM OF ONE HUNDRED SIX (106) YEARS; (II) AN INCREASE TO THE BASE RENT AND PERCENTAGE RENT; (III) MARKET RENT ADJUSTMENTS CAPPED AT TWENTY PERCENT AT LEASE YEAR FIFTY AND SEVENTY AND ANY SUBSEQUENT MARKET RENT ADJUSTMENTS TO BE CAPPED AT THIRTY-THREE PERCENT; (IV) THE CONSTRUCTION BY TENANT OF APPROXIMATELY 47,000 SQUARE FEET OF OFFICE SPACE AND OTHER IMPROVEMENTS ABOVE THE PARKING GARAGE AT THE PROPERTY HAVING AN APPROXIMATE VALUE OF $50 MILLION (EXPANSION IMPROVEMENTS); (V) A MAXIMUM BUILDING HEIGHT OF ONE HUNDRED (100) FEET; (VI) THE ADJUSTMENT OF TOTAL REQUIRED PARKING FOR THIS GARAGE TO FOUR HUNDRED TWENTY-FIVE (425) PARKING SPACES; AND (VII) THE PROVISION BY TENANT OF ADDITIONAL PUBLIC BENEFITS HAVING A VALUE OF ONE MILLION THREE HUNDRED THOUSAND DOLLARS ($1,300,000); WAIVING THE FORMAL COMPETITIVE BIDDING REQUIREMENTS BY A FIVE-SEVENTHS (5/7TH) VOTE AS PERMITTED UNDER SECTION 1.03(B)(1)(IV) OF THE CITY CHARTER AND SECTION 82-39(A) OF THE CITY CODE; SUCH FIRST AMENDMENT BEING SUBJECT TO THE APPROVAL BY A MAJORITY VOTE OF THE VOTERS IN A CITY-WIDE REFERENDUM AND CONDITIONED ON TENANT’S OBTAINING A MASTER BUILDING PERMIT FOR THE EXPANSION IMPROVEMENTS BY OR BEFORE JULY 1, 2031 AND COMMENCEMENT OF CONSTRUCTION OF THE EXPANSION IMPROVEMENTS BY OR BEFORE JANUARY 1, 2034.