R7G - Revise Sobe Toscana Lease

Resolutions - R7 G

R7 G A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, REVISIONS TO THE PROPOSED LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA (LANDLORD) AND SOBE TOSCANA, LLC (TENANT), WHICH WAS APPROVED THROUGH RESOLUTION NO. 2025-33790 ON JUNE 25, 2025 FOR THE OUTDOOR CAFE AREA AT 22 WASHINGTON AVENUE; AS FOLLOWS: (I) MODIFYING SECTION 2.3 TO CLARIFY TENANT’S TERMINATION RIGHT IF THE 816 COMMERCE STREET LEASE OR THE EASEMENT AGREEMENT TERMINATES; (II) ADDING SECTION 2.4 TO CONFIRM THE SURVIVAL OF TENANT’S OBLIGATIONS UNDER THE EASEMENT AGREEMENT; (III) MODIFYING SECTION 8.1 TO ALLOW MODIFICATION OF HOURS OF OPERATION CONSISTENT WITH LAW AND ADMINISTRATIVE APPROVALS; (IV) MODIFYING SECTION 8.4 TO GRANT TENANT A REVOCABLE LICENSE TO PLAY PRE-RECORDED BACKGROUND MUSIC AT AMBIENT LEVELS SUBJECT TO COMPLIANCE WITH ALL APPLICABLE LAWS AND CITY REGULATIONS; AND FURTHER; AUTHORIZING THE CITY MANAGER TO FINALIZE THE LEASE AGREEMENT; AND FURTHER, AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE LEASE AGREEMENT. Applicable Area:

COMMISSION MEMORANDUM

DATE:

RECOMMENDATION

The Administration recommends that the Mayor and City Commission approve the Lease Agreement revisions.

BACKGROUND/HISTORY

On August 9, 2017, the City of Miami Beach (the “City”) and Sobe Toscana, LLC (“Tenant”) entered into an original lease for approximately 2,216 square feet of outdoor café space at 22 Washington Avenue, ancillary to the Tenant’s adjoining restaurant at 816 Commerce Street; and on December 17, 2021, the parties executed an amendment exercising the renewal option through May 31, 2027, and the City later approved a non-exclusive subterranean Easement Agreement authorizing a 500-gallon grease trap beneath a portion of the outdoor café area to support the restaurant’s kitchen infrastructure.

On June 25, 2025, after a duly advertised public hearing, the Mayor and City Commission adopted Resolution No. 2025-33790, approving, in substantial form, a new lease for the same outdoor café space for a term of nine years and 364 days beginning June 1, 2027, with 3% annual rent escalation and continued compliance with the Easement Agreement. The resolution formalizes the transition to the forthcoming long-term lease aligned with the Tenant’s ongoing operations at 816 Commerce Street.

ANALYSIS

After adoption of Resolution 2025-33790, and in preparing for the new term, the City and the Tenant identified certain operational items that warrant clarification to better support the outdoor café’s future operations; specifically: (i) modify section 2.3 to clarify tenant’s termination right if the 816 commerce street Lease or the Easement Agreement terminates; (ii) adding section 2.4 to confirm the survival of Tenant’s obligations under the Easement Agreement; (iii) modify section 8.1 to allow modification of hours of operation consistent with law and administrative approvals; (iv) modify section 8.4 to grant Tenant a revocable license to play pre-recorded background music at ambient levels subject to all applicable laws and city regulations.

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 Mayor and City Commission approve the Lease Agreement revisions to: (i) modify section 2.3 to clarify tenant’s termination right if the 816 commerce street Lease or the Easement Agreement terminates; (ii) adding section 2.4 to confirm the survival of Tenant’s obligations under the Easement Agreement; (iii) modify section 8.1 to allow modification of hours of operation consistent with law and administrative approvals; (iv) modify section 8.4 to grant Tenant a revocable license to play pre-recorded background music at ambient levels subject to all applicable laws and city regulations; and further, authorize the City Manager to finalize the Lease Agreement; and further, authorize the City Manager and City Clerk to execute the 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? No

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

Department

Facilities and Fleet Management

Sponsor(s)

Co-sponsor(s)

Condensed Title

2:25 p.m. PH, Approve Revisions to Sobe Toscana Lease Agmt, Outdoor Cafe at 22 Washington Ave. FF

Previous Action (For City Clerk Use Only)