City of Sunny Isles Beach Collins Avenue Sunny Isles Beach, Florida 33160

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1 City of Sunny Isles Beach Collins Avenue Sunny Isles Beach, Florida (305) City Hall (305) Fax MEMORANDUM TO: FROM: The Honorable Mayor and City Commission Christopher J. Russo, City Manager DATE: 1/17/2013 RE: Lease Agreement with Newport to Manage, Operate and Maintain the Historic Pier, Restaurant Facilities and Bait Shop RECOMMENDATION: It is recommended that the City of Sunny Isles Beach (the "City") enter into the attached, proposed agreement between the City and Newport Operating Corporation and Dr. Robert Cornfeld ("Newport") to manage, operate and maintain the Historic Pier, Restaurant Facilities and Bait Shop. REASONS: The important points of the lease agreement are as follows: Newport agrees to manage, operate and maintain the fishing pier, its restaurant facilities of 5,000 square feet, and bait shop, located at Collins Avenue (the "Area") Newport shall have the exclusive right to regulate the entrance to the fishing pier, restaurant facilities and other facilities Newport shall charge a fee of no more than $5.00 (five dollars) to non-residents of the City and shall charge a discount fee to residents of the City, as determined by the City The initial term of the lease shall be for twenty (20) years with an option to renew for two (2) additional ten (10) year periods Newport shall pay the City a guaranteed monthly payment of $7, (seven thousand dollars) in rent. The rent shall be subject to 3% (three percent) increase every five years of the lease term The consent of the City is required before Newport selects a vendor to sell food and beverages in its restaurant facility The City has the exclusive right to use the fishing pier at least 9 (nine) times during Date 1/17/

2 the calendar year upon 30 (thirty) days notice to Newport Newport agrees, at its own expense, to pay for the build-out of the restaurant and the bait shop ATTACHMENTS: Resolution Lease Agreement Date 1/17/

3 Page 1 of 2 RESOLUTION NO A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING THE LEASE AGREEMENT BETWEEN THE CITY OF SUNNY ISLES BEACH AND NEWPORT OPERATING CORPORATION AND DR. ROBERT CORNFELD FOR THE MANAGEMENT, OPERATION AND MAINTENANCE OF THE HISTORIC PIER, RESTAURANT FACILITIES, AND BAIT SHOP IN SUBSTANTIALLY THE SAME FORM ATTACHED HERETO AS EXHIBIT A ; AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT; AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to a Letter Agreement dated November 25, 2008, the City and Newport Operating Corporation and Dr. Robert Cornfeld entered into a partnership to rebuild the historic Newport Fishing Pier; and WHEREAS, the Letter Agreement gives Newport Operating Corporation and Dr. Cornfeld the exclusive right to operate the Pier, to offer for sale and sell food, beverages and other related ancillary products on the premises; and WHEREAS, the City wishes to amend the Letter Agreement to reflect new terms for the management, operation and maintenance of the Historic Pier, Restaurant Facilities and Bait Shop. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of the Agreement. The City Commission hereby approves the Agreement with Newport Operating Corporation and Dr. Robert Cornfeld for the Management, Operation and Maintenance of the Historic Pier, Restaurant Facilities, and Bait Shop in substantially the same form attached hereto as Exhibit A. Section 2. Agreement. Authorization of Mayor. The Mayor is hereby authorized to execute said Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all things necessary to effectuate this Resolution. Section 4. Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 17 th day of January Norman S. Edelcup, Mayor Approving The Lease Agmt With Newport For Management Of Pier Rest. Page 1 of 2 76

4 Page 2 of 2 ATTEST: Jane A. Hines, CMC, City Clerk APPROVED AS TO FORM AND LEGAL SUFFICIENCY: Hans Ottinot, City Attorney Moved by: Seconded by: Vote: Mayor Edelcup (Yes) (No) Vice Mayor Aelion (Yes) (No) Commissioner Gatto (Yes) (No) Commissioner Levin (Yes) (No) Commissioner Scholl (Yes) (No) Approving The Lease Agmt With Newport For Management Of Pier Rest. Page 2 of 2 77

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