R7C - Following a Duly Advertised Public Hearing,

Resolutions - R7 C

R7 C A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING A DULY ADVERTISED PUBLIC HEARING, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE (FERC) AT ITS SEPTEMBER 26, 2025 MEETING, AND APPROVING, IN SUBSTANTIAL FORM, A NEW LEASE AGREEMENT BETWEEN THE CITY (LANDLORD) AND LITTLE HAVANA ACTIVITIES & NUTRITION CENTERS OF DADE COUNTY, INC. (TENANT), FOR THE USE OF APPROXIMATELY 2,690 SQUARE FEET OF GROUND FLOOR, CITY-OWNED PROPERTY AND ADJACENT PLAYGROUND AREA HAVING APPROXIMATELY 7,646 SQUARE FEET, LOCATED AT 833 SIXTH STREET, MIAMI BEACH, FLORIDA, FOR A TERM OF FIVE (5) YEARS WITH ONE (1) RENEWAL OPTION OF FOUR (4) YEARS AND 364 DAYS; FURTHER, WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(A) OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; 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 adopt the Resolution approving the new Lease Agreement with Little Havana Activities & Nutrition Centers of Dade County, Inc., for a term of five (5) years with one (1) renewal option of four (4) years and three hundred and sixty-four (364) days.

BACKGROUND/HISTORY

The City of Miami Beach has long supported partnerships with nonprofit service providers that deliver meaningful community benefits. One such partnership is with Little Havana Activities & Nutrition Centers of Dade County, Inc. (“LHANC”), a Florida not-for-profit corporation that has operated the Rainbow Intergenerational Childcare Center (the “Center”) from the City-owned South Shore Community Center, located at 833 Sixth Street, since 2009.

This licensed childcare program occupies approximately 2,690 square feet on the ground floor, with an adjacent playground area comprising approximately 7,646 square feet (collectively, the “Premises”) and is licensed for up to 74 children. The Center operates Monday through Friday from 7:30 AM to 5:30 PM, providing affordable, high-quality early childhood education and care in a safe, structured environment. The program is especially valued by working families in the City, many of whom depend on the reliable and nurturing services provided by LHANC to support their employment and household stability.

Since the expiration of its initial lease in 2019, LHANC has continued operations under a series of month-to-month extensions approved by the City Commission: Resolution Nos. 2021-31545, 2021-31928, 2022-32277, and 2023-32797. These extensions have maintained the Center’s operations and financial terms while the City evaluated long-term plans for the South Shore

Community Center.

To formalize a long-term partnership and ensure stability for both the City and LHANC, the Administration proposes a new lease agreement for a term of five (5) years, with one (1) renewal option of four (4) years and three hundred sixty-four (364) days, waiving the formal competitive bidding requirements by 5/7ths vote for these unique public benefit circumstances. The proposed lease agreement is attached as Exhibit A in draft form for review.

Below is a summary of the proposed new Agreement’s basic terms and conditions:

Landlord:

City of Miami Beach

Tenant:

Little Havana Activities & Nutrition Centers of Dade County, Inc.

Premises: 2,690 square feet on the first floor of the South Shore Community Center) and adjacent playground area having approximately 7,646 square feet located at 833 Sixth Street

Use:

Operation of an intergenerational childcare center

Commencement Date: December 1, 2025

Term:

Five (5) years

Renewal Options: One (1) option to renew for four (4) years and three hundred and sixty-four (364) days

Base Rent:

$1.20 per year, payable annually (3% annual increases)

Additional Rent: Monthly Operating Expenses: $1,900.00, subject to periodic adjustment based on actual pro-rata share (23%) of building-wide costs (e.g., janitorial, utilities, stormwater, etc.)

Insurance Requirements:

• • $1,000,000 General Liability (City named as additional insured) • Workers Compensation (statutory) • All-Risk Property Insurance (minimum 80% replacement cost value) • Professional Liability Insurance, including molestation coverage, with limits of $1,000,000 per occurrence and $2,000,000 aggregate • Automobile Liability Insurance with a minimum limit of $1,000,000, required if transporting children before or after school care • Type 7 Insurance

Maintenance Responsibilities: • Tenant: Responsible for all interior maintenance and non-structural repairs • City: Responsible for roof, HVAC system, and structural elements

Termination for Convenience: Either party may terminate with sixty (60) days’ written notice

Leasehold Condition: Premises leased in “AS IS” condition

Use Restrictions: Tenant must maintain not-for-profit status and may not use premises for any purpose other than the approved childcare program

ANALYSIS

The proposed lease ensures the continued operation of the Rainbow Intergenerational Childcare Center, delivering essential, licensed early childhood education and care to as many as 74 children, supporting working families, and supporting broader community well-being. The lease structure recognizes the organization’s non-profit mission by maintaining a nominal base rent and enables the City to recover ongoing building operating costs through the Tenant’s pro-rata share. LHANC has demonstrated reliability, high compliance, and alignment with municipal goals of early childhood care, working family support, and productive use of City-owned spaces.

FINANCE AND ECONOMIC RESILIENCY COMMITTEE

On September 26, 2025, the Finance and Economic Resiliency Committee (the “FERC”) discussed the proposed Lease Agreement. The Committee recommended in favor of executing a new Lease with LHANC.

Waiving the formal competitive bidding process, as authorized by the City Code and recommended by the Finance and Economic Resiliency Committee, is justified by the critical public service provided by LHANC and the unique nature of this long-standing partnership.

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 City Manager recommends that the Mayor and City Commission approve in substantial form, a new Lease Agreement with Little Havana Activities & Nutrition Centers of Dade County, Inc., for a term of five (5) years with one (1) renewal option of four (4) years and three hundred and sixty-four (364) days; and further, recommends waiving, by 5/7ths vote, the formal competitive bidding requirement in section 82-39(A) of the city code, finding such waiver to be in the best interest of the City.

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

2:15 p.m. PH, New Lease Agmt, Little Havana Activities & Nutrition Centers of Dade County. FF 5/7