Miami-Dade Legislative Item
File Number: 171500
Printable PDF Format Download Adobe Reader  Clerk's Official Copy   

File Number: 171500 File Type: Resolution Status: Adopted
Version: 0 Reference: R-830-17 Control: Board of County Commissioners
File Name: AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, IN Introduced: 6/8/2017
Requester: Aviation Department Cost: Final Action: 10/3/2017
Agenda Date: 10/3/2017 Agenda Item Number: 8A1
Notes: Title: RESOLUTION APPROVING THE FIRST AMENDMENT TO NON-EXCLUSIVE LEASE AND OPERATING AGREEMENT FOR AMERICAN EXPRESS CENTURION LOUNGE BETWEEN AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. AND MIAMI-DADE COUNTY; AUTHORIZING AMERICAN EXPRESS TRAVEL RELATED SERVICES TO CONSTRUCT AND OCCUPY ADDITIONAL LEASED PREMISES; PROVIDING FOR A RENTAL CREDIT UP TO AN AMOUNT NOT TO EXCEED $2,000,000.00 TO AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SAME AND EXERCISE ALL RIGHTS CONFERRED THEREIN; AND DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO PROVIDE THE COUNTY PROPERTY APPRAISER A COPY OF SAID LEASE
Indexes: AMERICAN EXPRESS
Sponsors: Rebeca Sosa, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Board of County Commissioners 10/3/2017 8A1 Adopted P

Economic Development and Tourism Committee 7/13/2017 3F Forwarded to BCC with a favorable recommendation P

Office of the Chairperson 7/12/2017 Additions

County Attorney 7/12/2017 Assigned David M. Murray

Office of Agenda Coordination 7/12/2017 Assigned County Attorney 9/7/2017
REPORT: Revised reso and memo

County Attorney 7/10/2017 Assigned Office of Agenda Coordination 7/10/2017

County Attorney 7/7/2017 Assigned David M. Murray 7/7/2017

Office of Agenda Coordination 7/7/2017 Assigned County Attorney 9/7/2017
REPORT: revised reso and memo

Office of Agenda Coordination 6/23/2017 Assigned County Mayor
REPORT: return

County Attorney 6/22/2017 Assigned Office of Agenda Coordination 6/22/2017

County Attorney 6/19/2017 Assigned David M. Murray 6/22/2017

Office of Agenda Coordination 6/8/2017 Assigned County Attorney 9/7/2017
REPORT: MDAD - David Murray - pending July cmte - no sponsor required - Attachments: Agreement - Note: 29 pages

Jack Osterholt 6/8/2017 Assigned Office of Agenda Coordination

Legislative Text


TITLE
RESOLUTION APPROVING THE FIRST AMENDMENT TO NON-EXCLUSIVE LEASE AND OPERATING AGREEMENT FOR AMERICAN EXPRESS CENTURION LOUNGE BETWEEN AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC. AND MIAMI-DADE COUNTY; AUTHORIZING AMERICAN EXPRESS TRAVEL RELATED SERVICES TO CONSTRUCT AND OCCUPY ADDITIONAL LEASED PREMISES; PROVIDING FOR A RENTAL CREDIT UP TO AN AMOUNT NOT TO EXCEED $2,000,000.00 TO AMERICAN EXPRESS TRAVEL RELATED SERVICES COMPANY, INC.; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SAME AND EXERCISE ALL RIGHTS CONFERRED THEREIN; AND DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO PROVIDE THE COUNTY PROPERTY APPRAISER A COPY OF SAID LEASE

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which his incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby approves the First Amendment to Non-Exclusive Lease and Operating Agreement for American Express Centurion Lounge between American Express Travel Related Services Company, Inc. (AETRS) and Miami-Dade County, Florida, in substantially the form attached hereto and made a part hereof, which authorizes a) AETRS to construct and occupy additional leased premises; b) Miami-Dade County to issue a one-dollar ($1.00) rental credit to AETRS for each dollar AETRS spends for Shell and Core Work up to an amount not to exceed two million dollars ($2,000,000.00) and c) authorizes the County Mayor or County Mayor’s designee to execute same for and on behalf of Miami-Dade County; and to exercise any and all other rights conferred therein. This Board also directs the County Mayor or County Mayor’s designee to provide the County Property Appraiser a copy of said lease in accordance with Resolution No. R-791-14.

HEADER
Date:




To:
Honorable Chairman Esteban L. Bovo, Jr.
and Members, Board of County Commissioners



From:
Carlos A. Gimenez
Mayor


Subject:
Resolution Approving the First Amendment to Non-Exclusive Lease and Operating
Agreement for American Express Centurion Lounge

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (Board) approve the First Amendment to the Non-Exclusive Lease and Operating Agreement for an American Express Centurion Lounge (AE/C Lounge) at Miami International Airport (MIA) to American Express Travel Related Services Co. Inc. (AETRS) to allow for the construction and expansion of the AE/C Lounge, and authorize the County Mayor or the County Mayor’s designee to execute the attached agreement.

Scope
MIA is located primarily within District 6, which is represented by Commissioner Rebeca Sosa; however, the impact of this agenda item is countywide as MIA is a regional asset.

Delegated Authority
In accordance with the Miami-Dade County Code Section 2-8.3 related to identifying delegation of Board authority contained within the Agreement, the Miami-Dade Aviation Department (MDAD) Director or the Director’s designee has the authority to terminate or extend the Agreement, and approve any assignment of the agreement by American Express.

Fiscal Impact/Funding Source
This Agreement is revenue producing. It is estimated that this Agreement will generate an additional $500,000 above the current $1.1 million in annual rent and revenue to MDAD. Additionally, the County will provide to AETRS a dollar ($1.00) rental credit for each dollar spent by AETRS to perform Shell and Core work, i.e. design and construction for the expansion of the AE/C Lounge, in an amount not to exceed $2 million.

Track Record/Project Monitor
AETRS is a tenant in good standing with MDAD. MDAD’s Chief of Commercial Operations, Ray Diaz, monitors this contract.

Background
Pursuant to Resolution No. R-402-14, approved by the Board on May 6, 2014, AETRS was awarded a 10-year lease with two five year extensions to run an AE/C Lounge in the North Terminal near Gate D-12. An unoccupied club space located on the fourth level of the rotunda next to gate D-12 comprising 6,500 square feet was expanded and converted into a Centurion Lounge, occupying 8,541 square feet of leased space.

The Centurion Lounge Miami has become the most popular lounge in the Centurion network, with 380,608 total visitors in the first 12 months of operation. It recorded the single highest day visit total of 1,615 guests on Sunday, January 3, 2016. The AE/C Lounge is so popular that the facility is at, or near, maximum capacity nearly half of the time it is open for business. Waiting lists to enter the club are often necessary on Mondays, Thursdays, Fridays and Saturdays. As a result of the popularity of the AE/C Lounge, customer satisfaction is diminished by complaints of overcrowding. To address the issue, AETRS approached MDAD to discuss an expansion of the faciilty.

AETRS proposes to add new space to the base building by connecting an existing 1,833- square-foot outdoor balcony to the building and further enclosing outdoor space adjacent to the balcony to produce the additional 4,000 square feet contemplated for this expansion. AETRS, which reportedly invested $9 million for the initial build-out, proposes to invest $6.7 million to expand the facility space by 50 percent more, or the stated 4,000 square feet. The $6.7 million capital investment includes $2 million for the Shell and Core work necessary to support and enclose the building site for construction. Because the proposed work results in new useable space, which furthermore increases MDAD’s rent role, a rental credit for the Shell and Core Work is included in this First Amendment.

__________________________
Jack Osterholt
Deputy Mayor



Home  |   Agendas  |   Minutes  |   Legislative Search  |   Lobbyist Registration  |   Legislative Reports
2019 BCC Meeting Calendar  |   Miami-Dade County Code of Ordinances   |   ADA Notice  |  

Home  |  Using Our Site  |  About Phone Directory  |  Privacy  |  Disclaimer

E-mail your comments, questions and suggestions to Webmaster  

Web Site © 2019 Miami-Dade County.
All rights reserved.