Authorize early renewal of United States Sailing Center lease for eight years

AGENDA ITEM SUMMARY FORM File ID: #17394 Date: 03/21/2025 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 05/08/2025 Sponsored By: District Impacted: District 2 Type: Resolution Subject: Authorize - Lease Renewal Options - United States Sailing Center Inc Purpose of Item: A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, THE EARLY EXERCISE OF THE TWO RENEWAL OPTIONS OF FOUR (4) YEARS EACH, FOR A TOTAL RENEWAL OF EIGHT (8) YEARS, AVAILABLE UNDER THE LEASE AGREEMENT BETWEEN THE CITY OF MIAMI (“CITY”) AND UNITED STATES SAILING CENTER, INC., A NON-PROFIT FLORIDA CORPORATION, PREVIOUSLY AUTHORIZED PURSUANT TO SECTION 29-D OF THE CITY CHARTER, AS AMENDED, FOR USE OF A PORTION OF CITY-OWNED WATERFRONT PROPERTY LOCATED AT 2476 SOUTH BAYSHORE DRIVE, MIAMI, FLORIDA; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. Background of Item: The City of Miami ("City") is the owner of real property and improvements located at 2476 South Bayshore Drive, Miami, Florida ("Property”). The United States Sailing Center, Inc., a non-profit Florida corporation (“Lessee”), has been operating a sailing center at the Property since 1986. Pursuant to Resolution No. 18-0178 passed and adopted on May 10, 2018, the City entered into a Lease Agreement (“Lease”) with the Lessee for the provision of marine-recreation services in accordance with the provisions of Section 29-D of the City Charter for an initial term of ten (10) years commencing on April 1, 2019 and expiring on March 31, 2029, with the option to renew for two (2) additional four (4) year terms (“Renewal Options”). The terms of the Lease provide that the Lessee may exercise each option to renew no earlier than twelve (12) months prior to expiration of the term, unless such earlier request is acceptable to Lessor in its sole opinion. The Lessee wishes to exercise all available Renewal Options simultaneously, thereby renewing the existing term of the Lease through March 31, 2037. Budget Impact Analysis Item is 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 03/23/2025 5:56 PM Office of Management and Budget Pedro Lacret Budget Analyst Review Completed 03/24/2025 10:13 AM Office of Management and Budget Marie Gouin Budget Review Completed 03/24/2025 1:07 PM City Manager’s Office Larry M. Spring Assistant City Manager Completed 04/01/2025 9:35 AM City Manager’s Office Natasha Colebrook-Williams Deputy City Manager Review Completed 04/01/2025 9:49 AM City Manager’s Office Arthur Noriega V City Manager Review Completed 04/04/2025 10:45 AM Legislative Division Valentin J Alvarez Legislative Division Review Completed 04/04/2025 12:05 PM Office of the City Attorney Jacqueline Lorenzo ACA Review Completed 04/24/2025 11:34 AM Office of the City Attorney George K. Wysong III Approved Form and Correctness Completed 04/25/2025 2:15 PM City Commission Todd B. Hannon Meeting Pending 05/08/2025 9:00 AM City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com City of Miami Legislation Resolution File Number: 17394 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, THE EARLY EXERCISE OF THE TWO (2) RENEWAL OPTIONS OF FOUR (4) YEARS EACH, FOR A TOTAL RENEWAL OF EIGHT (8) YEARS, AVAILABLE UNDER THE LEASE AGREEMENT BETWEEN THE CITY OF MIAMI (“CITY”) AND UNITED STATES SAILING CENTER, INC., A NON-PROFIT FLORIDA CORPORATION, PREVIOUSLY AUTHORIZED PURSUANT TO SECTION 29-D OF THE CITY CHARTER, AS AMENDED, FOR USE OF A PORTION OF CITY-OWNED WATERFRONT PROPERTY LOCATED AT 2476 SOUTH BAYSHORE DRIVE, MIAMI, FLORIDA; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. WHEREAS, the City of Miami ("City") is the owner of real property and improvements located at 2476 South Bayshore Drive, Miami, Florida ("Property"); and WHEREAS, the United States Sailing Center, Inc., a non-profit Florida corporation (“Lessee”), has been operating a sailing center at the Property since 1986; and WHEREAS, Section 29-D of the Charter of the City of Miami, Florida, as amended (“City Charter”), provides that the City Commission may waive competitive bidding and referendum requirements when entering into a lease or extending an existing lease with a non-profit, noncommercial, water-dependent organization which provides or seeks to provide marine- recreation services and/or activities to the community at any City-owned waterfront property, provided certain conditions are met pertaining to public access, public use, waterfront setback and view-corridor requirements, fair return to the City, compliance with the master plan, and requirements prescribed by ordinance pertaining to an organization using City-owned facilities; and WHEREAS, the City Commission by Resolution No. R-18-0178, adopted on May 10, 2018, determined that it is in the best interest of the City to enter into a Lease Agreement (“Lease”) with the Lessee for the provision of marine-recreation services in accordance with the provisions of Section 29-D of the City Charter; and WHEREAS, the City leased the Property to the Lessee for an initial term of ten (10) years commencing on April 1, 2019 and expiring on March 31, 2029, with the option to renew for two (2) additional four (4) year terms (“Renewal Options”); and WHEREAS, the terms of the Lease provide that the Lessee may exercise each option to renew no earlier than twelve (12) months prior to expiration of the term, unless such earlier request is acceptable to the City, in its sole opinion; and WHEREAS, the Lessee wishes to exercise all available Renewal Options simultaneously, thereby renewing the existing term of the Lease through March 31, 2037;

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 hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is authorized1 to negotiate and execute, in a form acceptable to the City Attorney, the early exercise of the Renewal Options to the Lease. Section 3. The City Manager is further authorized1 to negotiate and execute all documents, including amendments and modifications, in forms acceptable to the City Attorney, as may be necessary. Section 4. 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.