2021 Miami Seashore Referendum 2: Smith and Wollensky lengthen lease for South Pointe Park?

In the November 2 vote, that question related to the lease for Smith and Wollensky, who operate a waterfront restaurant on a city property in South Pointe Park, Miami Beach. The current lease expires in November 2025. The extension, which runs until 2045 if approved, includes certain requirements for restaurant upgrades, guaranteed rents and the installation of a parking security gate.

Referendum 2: City Property Lease Change: Smith and Wollensky Restaurant Location in South Pointe Park

So the question on the ballot will be:
City’s lease for 0.56 acres at 1 Washington Avenue Corp. for the Smith and Wollensky Restaurant in South Pointe Park expires in November 2025. According to resolution 2021-31805, this lease will be extended to December 2045, plus extension options, restaurant offers:

• Minimum of $ 3,305,970 for restaurant upgrades;
• Rent greater than: Guaranteed Rent, increased annually by 2.5% ($ 11,680,085 for the first ten years) or a percentage of sales;
• Free restaurant mentorship seminars;
• Installation of the security gate in the park?

Explanation:

Smith and Wollensky has been running his restaurant on the city’s premises since 1997. In addition to the extension to 2045, there would be two successive extension options of ten years each.

In terms of rent, according to the city’s electoral handbook, the extension would include “an increase in the annual rent paid to the city consisting of (i) $ 1,042,550 guaranteed rent (subject to a 2.5% annual escalator) or (ii) 9% of the gross income of the restaurant’s operations. “

Smith and Wollensky would be required to complete at least $ 3,305,970 in upgrades to the restaurant at their own expense and expense, including any improvements that may be required to meet the 40-year recertification for the building, all of which must be within 5 years, ”says the Voter’s Guide.

Community benefits required as part of the lease renewal include a free monthly lunch for seniors who live in the nearby Rebecca Towers and a free mentoring program for start-up restaurants and bars in Miami Beach, run by Smith and Wollensky is carried out. In addition, the restaurant would reimburse the city for the purchase and installation of electric security gates at the entrance to the South Pointe parking lot, and provide more access to public parking in the parking lot during the day.

According to the city, the lease change would increase the guaranteed minimum rent “more than ten times” compared to the existing lease, while “the percentage rent by more than double the existing percentage rent to 9% of the restaurant’s gross sales.” Smith and Wollensky are responsible for all maintenance costs, property taxes, insurance and other public charges for the building.

While the existing lease expires in 2025, Smith and Wollensky have agreed to pay a higher rent from January 2022 if the lease amendment is approved, with a three-year “ramp-up” phase – paying $ 1.25 million in 2022 , $ 1.5 million in 2023, $ 1.75 million in 2024, and $ 2 million in 2025. These payments include a minimum of $ 400,000 annually from a separate nine-year concession agreement approved by the City Commission has been approved for outdoor seating.

Under the current lease, Smith and Wollensky has the right to use 105 parking spaces in the parking lot next to the restaurant. If the rental agreement change is approved, Smith and Wollensky can “designate up to 50 of the 105 parking spaces as public parking spaces outside of peak hours (Monday through Thursday, 8:00 a.m. to 4:00 p.m., excluding bank holidays)”. according to the city’s electoral roll.

Note that the Commission has agreed to use a portion of the income from the lease change and the outdoor concession agreement for at least five years “for public safety, including police and security, in South Pointe Park and the surrounding south of Fifth Neighborhood. “

Supporters (yes to the question) from October 8th are:
SOBE safe

Photo courtesy Smith and Wollensky