RDA-3. - Approve Rda Rooftop Lease with Crown Castle

Redevelopment Agency Items (RDA) 3

COMMISSION MEMORANDUM

10:02 a.m. Public Hearing

RECOMMENDATION

The Administration recommends that the Chair and Board of Directors of the Miami Beach Redevelopment Agency approve the execution of the Rooftop Lease Agreement with Crown Castle Fiber, LLC. for the installation, operation, and maintenance of wireless communication equipment at the Anchor Shops and Garage.

BACKGROUND/HISTORY

The Miami Beach Redevelopment Agency (RDA) owns key properties that support the City's growing demand for enhanced telecommunications infrastructure. Among these, the Anchor Shops and Garage is a strategically located property that serves as an ideal site for expanding wireless communications.

To further this initiative, the RDA has engaged Crown Castle Fiber, LLC. as a tenant under a Rooftop Lease Agreement, attached hereto as Exhibit B, at the Anchor Shops and Garage. This agreement facilitates the installation, operation, and maintenance of wireless communication equipment, bolstering network connectivity in the area.

Crown Castle Fiber, LLC. formally submitted a Letter of Renewal Request on February 20, 2025, attached hereto as Exhibit A, outlining its intent to invest in the City’s wireless infrastructure. The lease aligns with the City's strategic goals of increasing connectivity while ensuring stable and growing revenue streams, containing the below basic terms and conditions of the proposal:

Lessor:

Miami Beach Redevelopment Agency (RDA)

Tenant:

Crown Castle Fiber, LLC.

Location:

1550 Collins Avenue, Miami Beach, Florida

Leased Premises: garage.

3,630 square feet on the rooftop of the Anchor Shops parking

Lease Duration:

9 years and 364 days starting on October 31, 2025 and expiring on October 29, 2035.

Rent:

$7,139.74 per month, payable on the 1st of each month.

Rent Escalation:

Increases 3% annually.

Additional Rent:

If the tenant adds more customers to the leased premises, rent increases proportionally.

Security Deposit:

$24,000. Refundable within 30 days of lease termination, provided the tenant is not in default.

Permitted Use:

Operation, maintenance, and removal of wireless communication equipment. Additionally, non-exclusive access to telephone distribution systems and conduits.

Utilities & Maintenance:

Tenant is responsible for equipment installation, maintenance, and utilities. Lessor is responsible for building maintenance, including the roof.

Access & Entry Tenant:

24/7 access but must notify Lessor if entering outside normal business hours. Lessor may enter for inspections, repairs, or emergencies but must give reasonable notice.

Assignments & Subleases:

Requires Lessor's approval, except for transfers to affiliated companies or successors.

Insurance & Indemnification:

Tenant must maintain general liability, property, and worker’s compensation insurance. Both parties waive rights to subrogation claims against each other.

Default & Termination:

The cure Period: 30 days for monetary defaults, 60 days for non- monetary defaults. Termination Rights: Either party can terminate after 36 months with 180 days’ notice. Termination is also possible for material breach, condemnation, or destruction of the Leased Premises.

Hazardous Materials:

Tenant cannot store or release hazardous materials and must comply with environmental laws.

As contained in the above terms, the Base Rental Rate is $1.97 per square foot, with three percent (3%) annual increases. The schedule of Base Rent due over the initial term is illustrated in the following chart:

ANALYSIS

The proposed Rooftop Lease Agreement is designed to secure a structured revenue stream while supporting the City’s digital infrastructure initiatives. The agreement includes a base rent of $7,139.74 per month, equating to $85,676.88 annually, with a 3% annual escalation. Over the full lease term, the agreement is projected to generate approximately $870,400.52 in base rent, excluding potential additional rent from new carrier partnerships.

Additionally, the agreement includes early termination rights, granting flexibility to the City while ensuring the tenant bears all costs related to equipment relocation. This strategic initiative promotes modernized telecommunications infrastructure, enhancing connectivity for businesses, residents, and visitors while maintaining financial sustainability.

FISCAL IMPACT STATEMENT

N/A

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

CONCLUSION

The Administration recommends that the Chair and Board of Directors of the Miami Beach Redevelopment Agency (RDA) hereby accept the recommendation of the City’s Finance and Economic Resiliency Committee and approve, in substantial form, a Rooftop Lease Agreement between the RDA (Landlord) and Crown Castle Fiber, LLC. (Tenant), for use of approximately 3,630 square feet of rooftop space at the Anchor Shops and Garage, located at 1550 Collins Avenue, for a period of nine (9) years and three hundred sixty-four (364) days, commencing on October 31, 2025 and expiring on October 29, 2035; further, authorize the Executive Director to finalize the Lease Agreement; and further, authorize the Executive Director and Secretary to execute the final negotiated Lease Agreement.

Applicable Area

South Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying?

If so, specify the name of lobbyist(s) and principal(s):

Department

Facilities and Fleet Management

Sponsor(s)

Co-sponsor(s)

Condensed Title

10:02 a.m. PH, New Lease for Crown Castle Fiber, LLC at Anchor Shops & Garage. FF

Previous Action (For City Clerk Use Only)