Authorize revocable license agreement with Downtown Development Authority

AGENDA ITEM SUMMARY FORM File ID: #17233 Date: 02/10/2025 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 04/10/2025 Sponsored By: Damian Pardo District Impacted: District 2 Type: Resolution Subject: Authorize RLA - Miami Downtown Development Authority Purpose of Item: A Resolution Authorizing the City Manager to negotiate and execute a new revocable license agreement with the Miami Downtown Development Authority (DDA) for the commercial use of City owned property located at 174 E Flagler Street, Miami, Florida, and to negotiate and execute all other necessary documents, including amendments and modifications to said agreements, all in a form acceptable to the City Attorney, as may be necessary to effectuate the uses contemplated herein. Background of Item: The DDA currently occupies commercial space in the Olympia Theater building at 174 E Flagler Street on an expired Lease Agreement. The occupant had a Lease Agreement in place with a third-party management company which was utilized by the City and is now defunct. The Department of Real Estate and Asset Management seeks to enter into a new RLA with the Licensee. Budget Impact Analysis Item has NOT an Expenditure Item is NOT Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: N/A Reviewed By Department of Real Estate and Asset Management Andrew Frey Department Head Review Completed 02/10/2025 4:10 PM Office of Management and Budget Pedro Lacret Budget Analyst Review Completed 02/12/2025 12:27 PM Office of Management and Budget Marie Gouin Budget Review Completed 02/12/2025 1:47 PM Department of Risk Management Ann-Marie Sharpe Risk Review Completed 02/12/2025 3:41 PM City Manager’s Office Larry M. Spring Assistant City Manager Completed 02/14/2025 4:16 PM City Manager’s Office Natasha Colebrook-Williams Deputy City Manager Review Completed 02/14/2025 4:23 PM City Manager’s Office Arthur Noriega V City Manager Review Completed 02/18/2025 11:41 AM Legislative Division Valentin J Alvarez Legislative Division Review Completed 03/07/2025 2:53 PM Office of the City Attorney Jacqueline Lorenzo ACA Review Completed 03/07/2025 5:45 PM Office of the City Attorney George K. Wysong III Approved Form and Correctness Completed 03/07/2025 5:50 PM City Commission Todd B. Hannon Meeting Pending 04/10/2025 9:00 AM City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com City of Miami Legislation Resolution File Number: 17233 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR-FIFTHS AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE CITY MANAGER'S RECOMMENDATION AND FINDING, ATTACHED AND INCORPORATED AS EXHIBIT "A," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS TO THE CITY OF MIAMI ("CITY") AND WAIVING THE REQUIREMENTS FOR SAID PROCEDURES; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A REVOCABLE LICENSE AGREEMENT (“LICENSE”), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY AND MIAMI DOWNTOWN DEVELOPMENT AUTHORITY (“LICENSEE”) FOR THE LICENSEE’S USE OF 433 SQUARE FEET OF CITY-OWNED PROPERTY LOCATED AT 174 E FLAGLER STREET, MIAMI, FLORIDA 33131 FOR THE PURPOSE OF PROVIDING OFFICE SPACE TO PROMOTE THE ECONOMIC HEALTH OF DOWNTOWN MIAMI, FOR A MONTHLY USE FEE OF FIVE HUNDRED EIGHTY-EIGHT DOLLARS AND EIGHTY-NINE CENTS ($588.89) PLUS ANY APPLICABLE TAXES, WITH A GUARANTEE DEPOSIT OF NINE HUNDRED SEVENTY-FOUR DOLLARS AND TWENTY SIX CENTS ($974.26), WITH TERMS AND CONDITIONS AS MORE SPECIFICALLY SET FORTH IN SAID LICENSE; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS AND MODIFICATIONS TO SAID LICENSE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY. WHEREAS, on July 24, 1975, the City of Miami (“City”) acquired, by way of a Special Warranty Deed, the property located at 174 East Flagler Street, Miami, Florida 33131 (“Property”), referred to as the Olympia Theater and Tower, and also known as the Gusman Center for the Performing Arts from Maurice Gusman Cultural Center for the Performing Arts, Inc.; and WHEREAS, the previously existing sub-lease and license agreement with the Miami Downtown Development Authority (“Licensee”) was managed by a third party and has since expired; and WHEREAS, the Licensee currently occupies commercial retail space at the Property; and WHEREAS, the Department of Real Estate and Asset Management (“DREAM”) recommends that the City enter into a new Revocable License Agreement (“License”) with Licensee, providing for a monthly use fee equal to five hundred eighty-eight dollars and eighty nine cents ($588.89) (“Monthly Use Fee”); and WHEREAS, Licensee shall also be responsible for paying a guarantee deposit of nine hundred seventy-four dollars and twenty six cents ($974.26) (“Guarantee Deposit”); and WHEREAS, the License shall commence upon the effective date and continue until the earlier of one year, as may be extended by the City Manager for one additional year, or upon termination by either party without cause by providing thirty (30) days’ prior written notice; and

NOW, THEREFORE,

BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as fully set forth in this Section. Section 2. Pursuant to Section 18-85(a) of the City Code, by a four-fifths (4/5ths) affirmative vote, after an advertised public hearing, the City Manager’s written findings, attached and incorporated as Exhibit “A,” that competitive negotiation methods and procedures are not practicable or advantageous, and waiving the requirements for said procedures, are hereby ratified, approved, and confirmed. Section 3. The City Manager is authorized1 to negotiate and execute the License, in a form acceptable to the City Attorney, between the City and Licensee, for the Licensee’s use of 433 square feet of the Property for the purpose of providing office space to promote the economic health of Downtown Miami, for the Monthly Use Fee with the Guarantee Deposit, with terms and conditions as more specifically set forth in said License. Section 4. The City Manager is further authorized1 to negotiate and execute all necessary documents, including amendments and modifications to said License, in a form acceptable to the City Attorney, as may be necessary. Section 5. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions.