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2014-28839 Reso RESOLUTION NO. 2014-28839 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, APPROVING, FOLLOWING SECOND READING/PUBLIC HEARING A DEVELOPMENT AGREEMENT AS AUTHORIZED UNDER SECTION 118-4 OF THE CITY CODE, AND SECTIONS 163.3220 - 163.3243, FLORIDA STATUTES, BETWEEN THE CITY AND 8701 COLLINS DEVELOPMENT, LLC ("8701'9), WHICH DEVELOPMENT AGREEMENT: (1) MEMORIALIZES THE CONDITIONS FOR VACATING THE CITY'S RIGHT OF WAY AT 87TH TERRACE EAST OF COLLINS AVENUE ("CITY PARCEL"); (2) GRANTS TO THE CITY A PERPETUAL PEDESTRIAN ACCESS EASEMENT ACROSS A PORTION OF THE VACATED CITY PARCEL; (3) ENSURES THE PAYMENT TERMS FOR 8701'S PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION, IN THE AMOUNT OF $10.5 MILLION DOLLARS, TO BE USED BY THE CITY FOR PUBLIC PURPOSES; AND (4) DELINEATES THE CONDITIONS FOR THE CONSTRUCTION OF THE PROJECT LOCATED AT 8701 COLLINS AVENUE AS A HOTEL AND/OR RESIDENTIAL CONDOMINIUM SITE. WHEREAS, on September 17th, 2014, after second reading public hearing, the City Commission approved Resolution No. 2014-28754, attached and incorporated as Exhibit "A" hereto and also referred to as the "Vacation Resolution", approving, with conditions, the vacation of a 50 foot wide right-of-way, running from Collins Avenue, east 360 feet to Tract "A", currently known as 87th Terrace (hereinafter "City Parcel"), in favor, of 8701 Collins Development, LLC ("8701"); and WHEREAS, 8701 owns the Dezerland Hotel, located at 8701 Collins Avenue (hereinafter the "Property"), which is located to the south of and adjacent to the City Parcel, and intends to redevelop the Property, together with the parking lot located on the north half of the Property and portions of the City Parcel, into a hotel, condo-hotel, and/or residential condominium (hereinafter the "Project"); and WHEREAS, in contemplation of this Project, 8701 will be seeking to enter into a development agreement with the City pursuant to Sections 163.3220 - 163.3243, Florida Statutes ("Development Agreement") to memorialize certain terms and conditions pertaining to the development of the Project, including the vacation of the City Parcel, and any other conditions imposed by the City Commission; and WHEREAS, Sections 163.3220 - 163.3243, Florida Statutes, and Section 118-4 of the City's Code require two public hearings on the Development Agreement; and WHEREAS, the City and 8701 have negotiated the attached Development Agreement which provides, amongst other things, the following terms and conditions: a. 8701 shall make a voluntary public contribution (hereinafter the "Voluntary Contribution") of $10.5 Million to the City in connection with the vacation of the City Parcel, with such funds to be payable in accordance and subject to the terms of the Development Agreement, and as authorized under City Resolution 2014-28815; b. 8701 shall develop and construct the Project consistent with the RM-2 zoning regulations and the terms of the Development Agreement; c. 8701 shall transfer to the City a perpetual public pedestrian access easement over a portion of the City Parcel, subject to the review and approval of City staff, not to be unreasonably withheld, in order to provide beach access to the public (the "City Easement"); d. the City Easement shall be improved as part of the Project and shall be open to the public and no later than the date a TCO or CO (whichever comes first) is issued for the Project. 8701 shall be solely responsible for all costs and work associated with the improvement (including, without limitation, the planning, permitting or construction) of the vacated City Parcel, as part of the Project including, but not limited to resurfacing, drainage, landscaping, hardscaping, sidewalks, irrigation, signage, beach access signage, lighting, design and construction of the City Easement; e. 8701 shall be responsible for the safety, security and maintenance of the City Easement; f. 8701 will enter into a Maintenance Agreement for the 87th Street City right-of-way, allowing 8701 to develop, maintain, pave, drain, light, landscape and install street furniture along this right-of-way in order to open the road to pedestrian traffic; g. except as to involuntary transfers (as shall be defined in the Development Agreement and which will include, without limitation, foreclosure transfers and transfers in lieu of foreclosure), 8701 shall not be entitled to assign or transfer its rights under the Development Agreement until after the earlier of (i) issuance of a Certificate of Occupancy ("CO") for the Project, or (ii) the payment of all of the Voluntary Contribution. Any such transferee shall . assume all remaining obligations of 8701 under the Development Agreement including, without limitation, (i) 8701's obligation to grant and improve the City Easement and (ii) to improve the 87th Street right-of-way; provided, however, that as to subsection (ii) the City may, at its sole discretion, elect not to proceed with, or terminate (as the case may be) the Maintenance Agreement for the 87th Street right-of-way; h. 8701 shall reimburse the City for any attorney's fees incurred by the City for outside counsel's review and negotiation of the Development Agreement, including related agreements, not to exceed reasonable amounts, as mutually agreed upon by the Parties (which counsel shall be selected and approved by the City Attorney); and, WHEREAS, following a duly noticed public hearing on October 29, 2014, the City Commission approved the Development Agreement on first reading, pursuant to Resolution No: 2014-28814. NOW THEREFORE RE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve, following second reading/public hearing, a Development Agreement as authorized under Section 118-4 of the City Code, and Sections 163.3220 — 163.3243, Florida Statutes, between the City and 8701 Collins Development, LLC ("8701"), which Development Agreement: (1) memorializes the conditions for vacating the City's Right Of Way at 87th Terrace east of Collins Avenue ("City Parcel"); (2) grants to the City a perpetual pedestrian access easement across a portion of the Vacated City Parcel; (3) ensures the payment terms for 8701's payment of a Voluntary Monetary Contribution, in the amount of$10.5 million dollars, to be used by the City for public purposes; and (4) delineates the conditions for the construction of the Project located at 8701 Collins Avenue as a hotel and/or residential condominium site. PASSED and ADOPTED this l q day of November, 2014. ATTEST: tr4 Philip Le ' `� or Rafael E. Granado, City Clerk �� .... APPROVED AS TO �.•,.• • . ,�1 . FORM & LANGUAGE &FOR EXECUTION �• INCORP ORA TED• ,1 : •440) City Attorney Date �'�`;H 2,o RESOLUTION NO. 2014-28754 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, APPROVING, ON SECOND AND FINAL READING OF THIS RESOLUTION AND FOLLOWING A DULY NOTICED PUBLIC HEARING, THE VACATION AND ABANDONMENT OF THAT PORTION OF 87TH TERRACE EAST OF COLLINS AVENUE, CONSISTING OF A 50 FOOT RIGHT-OF-WAY (ROW) CONTAINING APPROXIMATELY 18,042 SQUARE FEET IN TOTAL LOT AREA, AS SHOWN ON THE PLAT OF ALTOS DEL MAR SUBDIVISION NO. 29 RECORDED IN PLAT BOOK 4, PAGE 162 OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, IN FAVOR OF 8701 COLLINS DEVELOPMENT, LLC (THE "APPLICANT"); WITH SUCH VACATION SUBJECT TO AND CONTINGENT UPON THE CITY'S APPROVAL, AND THE CITY AND APPLICANT'S EXECUTION, OF A DEVELOPMENT AGREEMENT WHICH, AMONG OTHER TERMS AND CONDITIONS (1) GRANTS TO THE CITY A PERPETUAL PEDESTRIAN ACCESS EASEMENT ACROSS A PORTION OF THE VACATED CITY ROW, AND (2) ENSURES APPLICANT'S PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION, IN THE AMOUNT OF $10.5 MILLION DOLLARS, TO BE USED BY THE CITY FOR PUBLIC PURPOSES; AND WITH SUCH VACATION FURTHER SUBJECT TO AND CONTINGENT UPON APPLICANT'S SATISFACTION OF THE CONDITIONS SET FORTH IN THIS RESOLUTION. WHEREAS, the City of Miami Beach holds a right-of-way dedication to a 50 foot wide road, running from Collins Avenue, east 360 feet to Tract "A", currently known as 87th Terrace (hereinafter"City Right-of-Way"); and WHEREAS, the legal description of the City Right-of-Way is as follows: That portion of 87th Terrace (Nasturtium Street per Plat) as shown on the Plat of ALTOS DEL MAR SUBDIVISION NUMBER 2, according to the plat thereof, as recorded in Plat Book 4 at Page 162 of the Public Records of Miami-Dade County, Florida, being more particularly described as follows: Begin at the Southeast corner of said 87th Terrace, said Southeast corner also being the Southwest corner of Tract "A" as shown on said Plat Book 4 at Page 162; thence South 86°54'22" West along the South Right-of-Way line of said 87th Terrace: (Nasturtium Street) for 360.48 feet to the Northwest corner of Lot 1, Block 10 of said Plat Book 4 at Page 162; thence North 04°31'52" West along the East Right-of-Way line of Collins Avenue, also known as State Road No. A-1-A and the Northerly extension of the West line of said Block 10 for 25.76 feet to a point-of curvature; 17E;XHIBIT li thence Northerly along a 328.27 foot radius curve, leading to the right, through a central angle of 04°14'00" for an arc distance of 24.25 feet; thence North 86 054'22" East along the North Right-of-Way line of said 87th Terrace (Nasturtium Street) also being the South line and Westerly extension thereof of Block 4 of SECOND AMENDED PLAT OF NORMANDY BEACH, according to the plat thereof, as recorded in Plat Book 16 at Page 44 of said Public Records of Miami-Dade County, Florida, for 360.84 feet to the Northwest comer of said Tract "A"; thence South 03°05'38" East along the West line of said Tract "A"for 50.00 feet to the Point of Beginning. The above described parcel of land lying and being in the City of Miami Beach, County of Miami-Dade, State of Florida; and WHEREAS, 8701 Collins Development, LLC (hereinafter "Applicant") owns the Dezerland Hotel, located at 8701 Collins Avenue (hereinafter the "Property"), which is located to the south of and adjacent to the City Right-of-Way; and WHEREAS, Applicant intends to redevelop the Property, together with the parking lot located on the north half of the Property and portions of the City Right-of- Way, into a hotel, condo-hotel, and/or residential condominium (hereinafter the "Project); and WHEREAS, in contemplation of this Project, the Applicant will be seeking to enter into a Florida Statute Chapter 163 development agreement ("Development Agreement") with the City. to memorialize the terms and conditions of the Project, including the vacation of the City Right-of-Way, and any other conditions imposed by the City Commission; and WHEREAS, as a preliminary step in effectuating the Development Agreement, Applicant has requested that the City approve the vacation of the City Right-of-Way and has submitted its vacation application to the City's Public Works Department; and WHEREAS, the Administration recommends approval of the vacation and abandonment ("vacation") of the City Right-of-Way, subject to and conditioned upon the following conditions: a. the Applicant has offered a voluntary public contribution (hereinafter the "Voluntary Contribution") of $10.5 Million to the City in connection with the vacation of the City Parcel. All funds shall be allocated to public projects in North Beach, as shall be determined by the City Commission, in its sole and reasonable discretion. b. the Applicant will make the first payment, in the amount of $1,000,000, within ten (10) business days following the City Commission's (i) approval of the City Resolution authorizing the vacation of the City Parcel (the "Vacation Resolution") and (ii) final approval of the Development Agreement. This payment will be non-refundable. C. the Applicant will apply for a full building permit for the Project, using commercially reasonable efforts, no later than February 19, 2016. d. the Applicant will pay the City $4.5 million on the earlier of: (i) within ten (10) business days of the issuance of a full building permit for the Project, or (ii) November 19, 2016. The actual vacation of the City Parcel shall be effective as of the date the Applicant makes the $4.5 million payment. The $4.5 million payment shall be non-refundable. e. the Applicant will pay the remaining $5 million in four (4) equal payments of $1.25 million every six (6) months starting on the earlier of: (i) six (6) months after the City's issuance of the full building permit for the Project, or (ii) May 19, 2017; provided, however, that the entire amount remaining to be paid shall be paid ten (10) days prior to the issuance of a temporary certificate of occupancy(TCO) or certificate of occupancy (CO), whichever comes first, for the Project. The City may condition and withhold the issuance of the TCO or CO for the Project upon full and final payment of the remaining balance of the Voluntary Contribution. The $5 million payment shall also be non-refundable. f. the Applicant shall develop and construct the Project consistent with the RM-2 zoning regulations and the terms of the Development Agreement; g. no later than ten business days following the City Commission's final approval of the Development Agreement, Applicant shall transfer to the City a perpetual public pedestrian access easement over a portion of the City Parcel, subject to the review and approval of City staff, not to be unreasonably withheld, in order to provide beach access to the public (the "City Easement"); h. the City Easement shall be improved as part of the Project and shall be open to the public and no later than the date a TCO or CO (whichever comes first) is issued for the Project. Applicant shall be solely responsible for all costs and work associated with the improvement (including, without limitation, the planning, permitting or construction) of the vacated City Right-of-Way, as part of the Project including, but not limited to resurfacing, drainage, landscaping, hardscaping, sidewalks, irrigation, signage, beach.access signage, lighting, design and construction of the City Easement; L the Applicant shall be responsible for the safety, security and maintenance of the City Easement; i j. the Applicant will enter into a Management Agreement for the 87th Street City right-of-way, allowing Applicant to develop, maintain, pave, drain, light, landscape and install street furniture along this right-of-way in order to open the road to pedestrian traffic. k. Applicant may seek from the City development approvals and an easement agreement with the City in order to install balconies over the City's 87th Street right-of-way; I. Applicant will be responsible for submitting and obtaining any and all final, non-appealable development approvals for the Project (i.e. Design Review Board, Planning Board, Board of Adjustment. Applicant agrees and acknowledges that any such development approvals are subject to, and conditioned upon, approval by applicable development boards, in their sole and reasonable discretion; m. Except as to involuntary transfers (as shall be defined in the Development Agreement and which will include, without limitation, foreclosure transfers and transfers in lieu of foreclosure), Applicant shall not be entitled to assign or transfer its rights under the Development Agreement until after the earlier of (i) issuance of a Certificate of Occupancy ("CO") for the Project, or (ii) the payment of all of the Voluntary Contribution. Any such transferee shall assume all remaining obligations of Applicant under the Development Agreement including, without limitation, (i) Applicant's obligation to grant and improve the City Easement and (ii) to improve the 87th Street right-of-way; provided, however, that as to subsection (ii) the City may, at its sole discretion, elect not to proceed with, or terminate (as the case may be) the Management Agreement for the 87th Street right-of- way. The provisions of Subsection n, below, will not apply to this Subsection. j n. Except as to Applicant's obligation to make the Voluntary Contribution payments in accordance with Section III, above, time periods will be tolled due to force majeure (strikes, lockouts, acts of God, and other causes beyond the control of either party); appeals or other judicial or administrative challenges to project approvals; and delays in obtaining permits from other governmental agencies. Notwithstanding the foregoing, in the event that, a third party (unrelated or unaffiliated with the City or Applicant) institutes a legal proceeding in a court of competent jurisdiction (the "Law Suit") challenging the validity of the Vacation Resolution or the Development Agreement, then Applicant shall not be required to make further Voluntary Contribution payments (under conditions (d) or (3), above), and the City shall not be required to effectuate the vacation of the City Parcel, until thirty (30) days after the lawsuit has been completed and finally disposed of; and provided further that if the Law Suit is still pending for more than eighteen (18) months after the approval of the Development Agreement, then (i) the City, at its option, may elect to rescind the Vacation Resolution and terminate the Development Agreement, without cause; (ii) no further payment of the Voluntary Contribution shall be due and City shall return to Applicant any Voluntary Contribution payment received after the initial one (1) Million dollar payment required under condition (b) above; (iii) the vacation of the City Parcel shall not be effectuated; and (iv) the City and Applicant shall have no further obligation and/or liability to each other. o. Notwithstanding the foregoing, Applicant shall defend, indemnify, and hold the City harmless should any Law Suit be filed. p. Applicant agrees to reimburse the City for any attorney's fees incurred by the City for outside counsel's review and negotiation of the Development Agreement, and related agreements, not to exceed reasonable amounts, as mutually agreed upon by the Parties (which counsel shall be selected and approved by the City Attorney). WHEREAS, the vacation of the City Right-of-Way serves a public purpose, in that, it would provide enhanced pedestrian access ways to the public beach; would increase property taxes; possibly renovate and beautify the northern end of North Shore Open Space Park; serve as a catalyst to revitalize the North Beach area; and increase jobs as a result of the development and construction of the Project; and WHEREAS, the City advertised and held a public hearing as required by all applicable laws and code provisions. NOW THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, to approve, on second and final reading of this Resolution and following a duly noticed public hearing, the vacation and abandonment of the City's interest in the City Right-of-Way, in favor of Applicant; with such vacation subject to and contingent upon the City's approval, and the City and Applicant's execution, of a Development Agreement with the City which, among other terms and conditions (1) grants to the City of a perpetual pedestrian access easement across a portion of the vacated City ROW, and (2) ensures Applicant's payment of a Voluntary Monetary Contribution, in the amount of $10.5 million dollars, to be used by the City for public purposes as the City may deem in the best interest of its residents and visitors; and with such vacation further subject to and contingent upon Applicant's satisfaction of conditions (b),(c),and (d) set forth in this resolution. PASSED and ADOPTED this day of September, 2014. ATTEST: _ IP L VI , �OR, RAFAEL E. GRANADO, CITY CL :lNCORP ORA ED' t/ . .• •� . ' � ;' •� ,. � .. _. �� . fir'••. � � . ��% • ; • �, ,� .• • . APPROVED AS TO FORM&LANGUAGE &FOR EXECUTION City Attorney at MIAMI .BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Membe of th City Commission -COND READING FROM: Jimmy L. Morales, City Manag BLIC HEARING Raul Aguila, City Attornep� DATE: September 17, 2014 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, APPROVING, ON SECOND AND FINAL READING OF THIS RESOLUTION AND FOLLOWING A DULY NOTICED PUBLIC HEARING, THE VACATION AND ABANDONMENT ' OF THAT PORTION OF 87TH TERRACE EAST OF COLLINS AVENUE, CONSISTING OF A 50 FOOT RIGHT-OF-WAY (ROW) CONTAINING APPROXIMATELY 18,042 SQUARE FEET IN TOTAL LOT AREA, AS SHOWN ON THE PLAT OF ALTOS DEL MAR SUBDIVISION NO. 23 RECORDED IN PLAT BOOK 4, PAGE 162 OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, IN FAVOR OF 8701 COLLINS DEVELOPMENT, LLC (THE "APPLICANT"); WITH SUCH VACATION SUBJECT TO AND CONTINGENT UPON THE CITY'S APPROVAL, AND THE CITY AND APPLICANT'S EXECUTION, OF A DEVELOPMENT AGREEMENT WHICH, AMONG OTHER TERMS AND CONDITIONS (1) GRANTS TO THE CITY A PERPETUAL PEDESTRIAN ACCESS EASEMENT ACROSS A PORTION OF THE VACATED CITY ROW, AND (2) ENSURES APPLICANT'S PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION, IN THE AMOUNT OF $10.5 MILLION DOLLARS, TO BE USED BY THE CITY FOR PUBLIC PURPOSES; AND WITH SUCH VACATION FURTHER SUBJECT TO AND CONTINGENT UPON APPLICANT'S SATISFACTION OF THE CONDITIONS SET FORTH IN THIS RESOLUTION. The City of Miami Beach holds a right-of-way dedication to a 50 foot wide road, running from Collins Avenue, east 360 feet to Tract "A", as set forth in the sketch attached as Exhibit "A" to the resolution (hereinafter "City Right-of-Way"). The City Right-of-Way, known as 87th Terrace, originated when the Plat of Altos Del Mar Subdivision Number 2 was platted in 1920 (Exhibit A). 8701 Collins Avenue, LLC, (hereinafter "Applicant") owns the property to the South of and adjacent to the City's Agenda Item 7 Date 9-/7-/y Vacation of 87th Terrace east of Collins Ave-Memorandum—Second Reading, Public Hearing September 17,2014 Page 2 of 10 Right-of-Way. The Applicant's property, the Biltmore Terrace Hotel, formerly known as the "Dezerland" Hotel, is located at 8701 Collins Avenue (hereinafter the "Property"). The Applicant intends to redevelop the Property, together with the parking lot located on the north half of the Property, and portions of the City Right-of-Way into a hotel, condo- hotel and residential condominium (hereinafter the "Project). The Project was approved by the Design Review Board ("DRB") on May 6, 2014 (DRB File Numbers 23046 and 23047), which may be modified. In contemplation of this Project, the Applicant will be seeking to enter into a Development Agreement with the City to memorialize the conditions imposed by the City Commission. As a first step in effectuating the Development Agreement, Applicant has requested that the City vacate the City Right-of-Way and has submitted its vacation application to the City's Public Works Department. This item was heard during the July 18th, 2014 Finance and City Wide Projects Committee meeting. No action was taken at that time and the discussion item was deferred. During the July 23rd City Commission meeting counsel for Applicant, Mr. Jeffrey Bercow of Bercow Radell & Fernandez, confirmed the offer of his client the Terra Group, and proffered a voluntary contribution of $10.5 million dollars, should the vacation proceed. This item was then heard on July 30th Special Finance and City Wide Projects Committee meeting, and the Committee recommended that the item proceed to the City Commission with a positive recommendation, and a proposed term sheet for the September 10, 2014 City Commission meeting. The Proposed Development Agreement: The proposed underlying Development Agreement contemplates the following terms: 1. The Project entails redeveloping the property located at 8701 Collins Avenue and the parking lot located on the north half of the property into a hotel, j condo-hotel, accessory uses, and residential condominium. 2. The City, upon execution of the Development Agreement, would vacate the City Right-of-Way in favor of Applicant. 3. The Applicant would voluntarily pay a contribution of $10.5 million dollars to the City, which funds are to be used by the City for public purposes as the City may deem in the best interest of its residents and visitors. 4. The Property is adjacent to the North Beach Open Space Park. The voluntary contribution received from the Applicant would possibly allow the City to improve the park, including the installation of landscaping, hardscaping and pedestrian access improvements for the entirety of the Park. The City may also use the funds towards implementing a trolley for North Beach, and/or such other public purposes as the City may deem in the best interest of its residents and visitors. Vacation of 871n Terrace east of Collins Ave-Memorandum—Second Reading,Public Hearing September 17,2014 Page 3 of 10 5. The Applicant would also provide the City a ten foot (10') wide perpetual pedestrian access easement across the vacated City Right-of-Way. The Applicant would construct and maintain the'pedestrian access easement area. 6. As part of the Project, the Applicant may seek an 87th Street easement for balconies over the City's right-of-way. Proposed Conditions to Vacation: The first step toward effectuating the Development Agreement is the vacation of the City Right-of-Way. The following conditions to the vacation are expected to occur following approval of the Development Agreement and execution by City and Applicant: a. the Applicant has offered a voluntary public contribution (hereinafter the "Voluntary Contribution") of $10.5 Million to the City in connection with the vacation of the City Parcel. All funds shall be allocated to public projects in North Beach, as shall be determined by the City Commission, in its sole and reasonable discretion. b. the Applicant will make the first payment, in the amount of $1,000,000, within ten (10) business days following the City Commission's (i) approval of the City Resolution authorizing the vacation of the City Parcel (the "Vacation Resolution") and (ii) final approval of the Development Agreement. This payment will be non-refundable. C. the Applicant will apply for a full building permit for the Project, using commercially reasonable efforts, no later than February 19, 2016. d. the Applicant will pay the'City $4.5 million on the earlier of: (i) within ten (10) business days of the issuance of a full building permit for the Project, or (ii) November 19, 2016. The actual vacation of the City Parcel shall be effective as of the date the Applicant makes the $4.5 million payment. The $4.5 million payment shall be non-refundable. e. the Applicant will pay the remaining $5 million in four (4) equal payments of $1.25 million every six (6) months starting on the earlier of: (i) six (6) months after the City's issuance of the full building permit for the Project, or (ii) May 19, 2017; provided, however, that the entire amount remaining to be paid shall be paid ten (10) days prior to the issuance of a temporary certificate of occupancy (TCO) or certificate of occupancy (CO), whichever comes first, for the Project. The City may condition and withhold the issuance of the TCO or CO for the Project upon full and final payment of the remaining balance of the Voluntary Contribution. The $5 million payment shall also be non-refundable. f. the Applicant shall develop and construct the Project consistent with the RM-2 zoning regulations and the terms of the Development Agreement; Vacation of 87"'Terrace east of Collins Ave-Memorandum-Second Reading,Public Hearing September 17,2014 Page 4 of 10 g. no later than ten business days following the City Commission's final approval of the Development Agreement, Applicant shall transfer to the City a perpetual public pedestrian access easement over a portion of the City Parcel, subject to the review and approval of City staff, not to be unreasonably withheld, in order to provide beach access to the public (the "City Easement h. the City Easement shall be improved as part of the Project and shall be open to the public and no later than the date a TCO or CO (whichever comes first) is issued for the Project. Applicant shall be solely responsible for all costs and work associated with the improvement (including, without limitation, the planning, permitting or construction) of the vacated City Right-of-Way, as part of the Project including, but not limited to resurfacing, drainage, landscaping, hardscaping, sidewalks, irrigation, signage, beach access signage, lighting, design and construction of the City Easement; L the Applicant shall be responsible for the safety, security and maintenance i of the City Easement; j. the Applicant will enter into a Management Agreement for the 87th Street City right-of-way, allowing Applicant to develop, maintain, pave, drain, light, landscape and install street furniture along this right-of-way in order to open the road to pedestrian traffic. k. Applicant may seek from the City development approvals and an easement agreement with the City in order to install balconies over the City's 87th Street right-of-way; I. Applicant will be responsible for submitting and obtaining any and all final, non-appealable development approvals for the Project (i.e. Design Review Board, Planning Board, Board of Adjustment. Applicant agrees and acknowledges that any such development approvals are subject to, and conditioned upon, approval by applicable development boards, in their sole and reasonable discretion; M. Except as to involuntary transfers (as shall be defined in the Development Agreement and which will include, without limitation, foreclosure transfers and transfers in lieu of foreclosure), Applicant shall not be entitled to assign or transfer its rights under the Development Agreement until after the earlier of (i) issuance of a Certificate of Occupancy ("CO") for the Project, or (ii) the payment of all of the Voluntary Contribution. Any such transferee shall assume all remaining obligations of Applicant under the Development Agreement including, without limitation, (i) Applicant's obligation to grant and improve the City Easement and (ii) to improve the 87th Street right-of-way; provided, however, that as to subsection (ii) the City may, at its sole discretion, elect not to proceed with, or terminate (as the case may be) the Management Agreement for the 87th Street right-of-way. The provisions of Subsection n, below, will not apply to this Vacation of 8;�h Terrace east of Collins Ave-Memorandum—Second Reading,Public Hearing September 17,2014 Page 5 of 10 Subsection. n. Except as to Applicant's obligation to make the Voluntary Contribution payments in accordance with Section III, above, time periods will be tolled due to force majeure (strikes, lockouts, acts of God, and other causes beyond the control of either party); appeals or other judicial or administrative challenges to project approvals; and delays in obtaining permits from other governmental agencies. Notwithstanding the foregoing, in the event that, a third party (unrelated or unaffiliated with the City or Applicant) institutes a legal proceeding in a court of competent jurisdiction (the "Law Suit") challenging the validity of the Vacation Resolution or the Development Agreement, then Applicant shall not be required to make further Voluntary Contribution payments (under condition d. or e., above), and the City shall not be required to effectuate the vacation of the City Parcel, until thirty (30) days after the lawsuit has been completed and finally disposed of; and provided further that if the Law Suit is still pending for more than eighteen (18) months after the approval of the Development Agreement, then (i) the City, at its option, may elect to rescind the Vacation' Resolution and terminate the Development Agreement, without cause; (ii) no further payment of the Voluntary Contribution shall be due and City shall return to Applicant any Voluntary Contribution payment received after the initial one (1) Million dollar payment required under condition (b) above; (iii) the vacation of the City Parcel shall not be effectuated; and (iv) the City and Applicant shall have no further obligation and/or liability to each other. o. Notwithstanding the foregoing, Applicant shall defend, indemnify, and hold the City harmless should any Law Suit be filed. P. Applicant agrees to reimburse the City for any attorney's fees incurred by the City for outside counsel's review and negotiation of the Development Agreement, and related agreements, not to exceed reasonable amounts, as mutually agreed upon by the Parties (which counsel shall be selected and approved by the City Attorney). City Right-of-Way Plat History: On June 12, 1920, a plat was recorded at Plat Book 4, page 162, designated as "Altos Del Mar Subdivision Number 2." The plat dedicated seven (7) rights of way for the perpetual use of the public for the specific purpose of "public highways and thoroughfares." One of the dedicated thoroughfares was for Nasturtium Street, now named 87th Terrace. 87th Terrace is currently developed with a public street, including parking. Another right-of-way dedicated under the plat was Marigold Street, now known as 87th Street. At one time 87th Street was an improved street, but those improvements were later removed and the land is now maintained with landscaping. 87th Street is the subject of the Management Agreement and balcony easement agreement contemplated as part of the Applicant's Development Agreement. The plat was "accepted" by Miami- Dade County in 1963. Vacation of 871n Terrace east of Collins Ave-Memorandum—Second Reading, Public Hearing September 17, 2014 Page 6 of 10 The plat also created, between the easternmost roadway ends of the six (6) dedicated thoroughfares and the public beach, six (6) tracts entitled "A". One of the six "A" tracts is located east of the street end of the City Right-of=Way (87th Terrace). The "A" tracts were reserved to the ownership of the subdivider of the plat. The plat provides as to these tracts: And that the tracts marked thereon and designated by the Letter "A", together with all riparian rights and submerged lands adjacent and appurtenant to said tracts so marked "A" are hereby granted, reserved, and limited to the private use only of the present or future owner or owners of said Altos Del Mar Subdivision Number 2, or any part thereof. It is hereby expressly declared that no part of ... said tract so marked "A" now is or has been dedicated or granted to the public use for any purpose, in any way, form or manner whatsoever. [Emphasis added]. Charter Analysis: Any time the City contemplates the disposition of City land, the transaction must be analyzed to ensure compliance with Section 1.03 of the City's Charter. The Charter is reviewed in order to determine whether a supermajority vote of the City Commission or a voter referendum is required prior to vacation of the City's Right-of-Way. The following is an analysis of the relevant provisions of Section 1.03 of the City Charter. 1. Is the City's Right-of-Way vacation a "sale, exchange, conveyance 'or lease or any other transfer of any City interest in a public beach right-of-way (extending eastward from Collins Avenue/Ocean Drive to the erosion control line)" which would require a majority vote of the voters in a citywide referendum, as contemplated in Section 1.03(d) of the City's Charter? Answer: No. The City Right-of-Way is East of Collins Avenue but does not extend to the erosion control line. Further, the 50-foot roadway was platted west of the intervening property marked tract "A" on the plat. The Altos Del Mar Subdivision Number 2 Plat dedicated the roadway Nasturtium (87th Terrace), and created the intervening tract "A" east of Nasturtium. Based upon the express language of the plat, the subdivider's action was not to extend the roadways to the public beach, but instead to provide a private space for the use of private owners in the subdivision, between the end of the road and the beach. The current owner of Tract "A" at the street end of 87th Terrace is Miami-Dade County. Vacation of 87"'Terrace east of Collins Ave-Memorandum—Second Reading,Public Hearing September 17, 2014 Page 7 of 10 2. Is the City Right-of-Way vacation a "sale, exchange, conveyance, lease, or any other transfer of any City interest in any public street-end bordering on land designated "Government Use", ... or "Waterfront land,"' which would require either the unanimous approval of those members of the City Commission with power to vote or approval by a majority vote of the voters in a Citywide referendum as contemplated in Section 1.03(e) of the City Charter? Answer: No. The intervening tract "A" is zoned RM-2, not GU. The City's Right- of-Way is not "Waterfront land." As indicated above, Miami-Dade County, through a foreclosure, obtained title to Tract "A". Section 142-421, of the City's Code provides that "[a]ny land ... owned by ... the City or other governmental agency for no less than an initial term of 20 years shall automatically convert to a GU government use district." Section 142-421 would appear ' to require the County's Tract "A" to be zoned GU. However,-the City's Official.Zoning Map specifically designates Tract "A", as being zoned RM-2. The City Commission under Ordinance 98-3151, specifically downzoned Tract A, and the surrounding parcels to RM-2. As the Zoning Map and Section 142-421 directly conflict an analysis must be done to reconcile the two provisions. Where two provisions of an ordinance are in conflict and must be reconciled, resort is made to statutory construction, and to look to their "plain meaning." Moonlit Water Apts. v. Cauley, 666 So. 2d 898, 900 (Fla. 1996). Moreover, regulations that limit the use of property must be read in favor of private property rights where possible. See Rinker Materials.Corp. v. City of North Miami, 286 So. 2d 552, 553 (Fla. 1973). When statutes conflict, it is often impossible to harmonize the conflicting provisions and to determine the legislative intent. Agency for Health Care Admin. v. In re Estate of Johnson, 743 So. 2d 83, 86-87 (Fla. 3d. DCA 1999). As a result, rules of statutory construction then require a determination as to which provision is more specific, as that provision would control. The goal of statutory construction is to "provide a field of operation to all rather than construe one statute as being meaningless or repealed by implication." Id. at 86-87. This statutory construction analysis is also utilized by the City. Section 114-2(b), of the City Code entitled "Interpretations, purpose and conflict," provides, in relevant part: When there are different regulations, one general and one more specific, both of which may apply to a given subject, the more specific one shall govern, regardless of whether it be part of the City Code or this subpart and regardless of the date of enactment. (Emphasis added). In this instance, the general provision is found in Section 142-421, which designates all City and government agency owned land in the City as GU, Government Use district. The specific provision is found on the zoning map, designating the parcel as RM-2, which is the direct result of a downzoning of the property by action of the City Commission. This treatment of Tract "A" as other than GU is similarly found in the action of the City Commission in specifically designating the Miami Beach Convention Center and property immediately surrounding it as a new zoning district, the CCC Civic Vacation of 87..Terrace east of Collins Ave-Memorandum—Second Reading,Public Hearing September 17,2014 Page 8 of 10 and Convention Center district, by Ordinance No. 81-2286. In light of the clear statutory requirement that conflicting provisions in the City Code be reconciled by the direction in City Code Section 114-2(b), that the specific provision control over the general provision, and that the tract labeled "A" on the plat was specifically rezoned RM-2 by action of the City Commission, the parcels are properly designated RM-2 on the zoning map, and the provisions of Section 1.03(e) are not triggered. Additionally, the City Right-of-Way is not "Waterfront Land." The Altos Del Mar Subdivision Number 2 plat created Tract "A" at each street end. This intervening tract between the City's Right-of-Way and the beach precludes a finding that the City's Right- of-Way is "Waterfront land'." Waterfront land is not defined in the Charter. Therefore, in order to determine the legislative intent of the provision, statutory construction requires us to use the ordinary, plain and obvious meaning when attempting to interpret the word in question. Knowles v. Beverly Enterprises-Florida, Inc., 898 So. 2d 1, 5 (Fla. 2004). A clear, ordinary and obvious meaning is found in the dictionary. As such, Random House Dictionary defines waterfront as "land on the edge of a body of water." As the City's interest ends at Tract "A", the City's Right-of-Way does not qualify as "Waterfront Land." 3. Does the vacation of the City Right-of-Way result in an increase in the current floor area ratio "by zoning, transfer, or any other means" of a street end or property? If triggered, a referendum vote of the electors, as contemplated under Section 1.03(c) of the City's Charter would be required. Answer: No, Section 1.03(e) of the Charter is not triggered by the vacation. The surrounding parcels to the City Right-of-Way are zoned RM-2. Upon vacation the City Right-of-Way would retain the zoning designation of the adjacent parcels. Therefore, there will be no zoning change. The City's resolution will relinquish the City's interest in the Right-of-Way. As the Applicant's Project includes the vacated Right-of-Way, Applicant will be required to i execute a Unity of Title or Covenant in Lieu of Unity of Title, as required by Section 118- 5, of the City Code. The Execution of either document shall aggregate Applicant's development rights on the "unified abutting parcels." This action is consistent with Section 1.03(e) of the Charter, which specifically states: "The provision shall not preclude or otherwise affect the division of lots, or the aggregation of development rights on unified abutting parcels." Applicant's aggregation of rights shall not increase by zoning, transfer, or any other means the current, existing floor area ratio of the vacated Right-of-Way or Applicant's Property. Based upon the foregoing, the referendum requirement of Section Charter provision 1.03(d) specifically addresses City owned "Beach access rights of way." Section 1.03(e) appears to be a companion amendment to 1.03(d),and seeks to capture all other water bodies that are not considered City owned"Beach access rights of way." i Vacation of 87""Terrace east of Collins Ave-Memorandum—Second Reading,Public Hearing September 17, 2014 Page 9 of 10 1.03(e) is not triggered. 4. Is the vacation a "sale, exchange, conveyance or lease of ten years or longer of all remaining City-owned propert� (other than public beach rights-of-way)" that would require approval by a majority 4/7t vote of all members of the Planning Board and 6/7 th vote of the City Commission as contemplated by Section 1.03(b)(4) of the City Charter? Answer: No. Although in past.years the City has issued a quit claim deed when vacating a right-of-way, the City is not required to do so. Local governments do not "own" dedicated streets and roads. 1978 Fla. Op. Atty. Gen. 289 (1978). The City has a perpetual right to use the right-of—way for the public purpose for which the land was dedicated. The City could not use the land for any other purpose. As such, the legal title to the land remains in the grantor, and its successors in interest. Upon the vacation of the roadway, the public's interest is extinguished and the abutting landowner(s) continue to hold fee simple interest in the land. 1978 Fla. Op. Atty. Gen. 309 (1978). The City may vacate a right-of-way "when the vacation is in the public interest or when it is no longer required for public use and convenience. The issuance of the resolution would extinguish the City's interest in the right-of-way. Section 177.085, Florida Statute. Thus, the City's resolution would not be considered a "conveyance" that would require the enhanced voting requirements delineated in Section 1.03(b)(4) of the Charter. Compliance with Chapter 82 of the City's Code: The City must comply with the requirements of Chapter 82, of the City Code, which requires certain actions prior to effectuating a vacation. Section 82-37 requires the City Manager to transmit the item to the Finance and Citywide Projects Committee. The Committee heard this item on May 16, 2014, July 18, 2014, and on July 30, 2014. On May 21, 2014, pursuant to Resolution No. 2014-28608, the City set the public hearing for the vacation, and the City Commission resolved by 5/7ths vote to waive the public bidding requirements of Section 82-39, and found a public purpose in so doing. On July 23rd, 2014, the City Commission directed that the Resolution authorizing the vacation of the City's ROW be placed on the September 10th Commission agenda, and on the September 17th City Commission agenda, for second and final reading, and public..hearing. On July 30th, the Finance and Citywide Projects Committee directed that a term sheet be negotiated and placed on the September 10th City Commission agenda. The term sheet and first reading of the vacation resolution was approved by the City Commission on September 10th, 2014. Second reading, public hearing was advertised and scheduled for September 17th, 2014 on the City Right-of-Way vacation. The City has also obtained an appraisal of the City'Right-of-Way. The Code also requires the Resolution to be read during two meetings of the City Commission, with the second reading being accompanied by a public hearing. In compliance with Section 82- 38, the Planning Department prepared its analysis of the vacation. A copy of the planning analysis is attached as Exhibit B. The Planning Department reviewed the six (6) criteria elements for vacating City Property and found these requirements to have been satisfied. The criteria of Section 82-38 of the City Code require, prior to I Vacation of 87rr'Terrace east of Collins Ave-Memorandum—Second Reading,Public Hearing September 17, 2014 Page 10 of 10 proceeding with the vacation, the City Commission make a finding that a public purpose is served by the vacation. Recommendation: a. The Administration recommends that the City Commission find that the vacation serves a public purpose due to the following- 1. The Applicant's Project would provide enhanced pedestrian access to the public beach and shoreline. 2. The City may decide to use the Voluntary Contribution towards the renovation and beautification of the northern end of North Shore Open Space Park. 3. The Project is anticipated to create a significant North Beach destination to the Applicant's Hotel, which Project may serve as a catalyst to a revival of the area. 4. Applicant's project would serve a public purpose in expanding the City's revenue base, reducing the City's costs, and improve the community's overall quality of life. The impact on adjacent properties would be positive, as the access easement along the proposed vacated City Right-of-Way would be improved, maintained, and secured by the Applicant. 5. The Project would reduce the City's Costs in maintaining the vacated City Right-of-Way. Additionally the Applicant would maintain and secure the perpetual easement area. 6. The Applicant's Project would'create jobs. 7. The Project would be in keeping with the surrounding neighborhood, will not block views or create other environmental intrusions. 8. The Project is anticipated to enhance the aesthetics of the community and adjacent park land. b. The City Manager recommends approval of the vacation and abandonment of that portion of 87th Terrace east of Collins Avenue, consisting of a 50 foot right-of-way (ROW)containing approximately 18,042 square feet in total lot area, as shown on the Plat Of Altos Del Mar Subdivision No. 2, recorded in Plat Book 4, Page 162 of the Public Records of Miami-Dade County, in favor of 8701 Collins Avenue, LLC (the "Applicant"); with such vacation subject to and contingent upon the City's approval, and the City and Applicant's execution of a Development Agreement with the City which, among other terms and conditions (1) grants to the City of a perpetual access easement across the vacated City ROW and (2) ensures Applicant's payment of a voluntary monetary contribution in the amount of $10.5 million dollars, to be used by the City for public purposes as the City may deem in the best interest of its residents and visitors; with such vacation further subject to and contingent upon Applicant's satisfaction of the conditions (b), (c), and (d) set forth in the resolution. Exhibits: A. Plat Map B. Planning Analysis ALL MEN BY THESE PRESL-N TES, THAT TATUM's OCEAN PARK COMPANY, A F FLORIDA, HAS EXECUTED A PLAT OF PART CF Gct'EANMiEN—, 1.07 r`/VM&ER ONE(1), of .SECTION NUmerr, NSt11P FIFTY-THREE (S3) SOUTH, RANGE FORTY-7tn/O "#2) jEASr,5lTvA-rE :N DADS COUNTY, PLAT I1AS SL'EAI DULY RECORDED IN PLAT BOirK �_ AT PAC,E O1 'THE PUBLIC RECORDS nF()ADE TI•IATSAID Pt AT IS O6SlGNATED AS rf4LT05 DEL MAR SUQDIVIS/O/V NUMBER .2,, ASUBpIVISION OF PARTOF SBC R, T ���5. R.�f�E, 7--A7 SAID LAfvD AS SHOWN,MARRED AND OFSIGNATfD ON SAID PcAr IS AND I:EREArTfR AS ALTOS DEL MAR svaoivlsich+ NUMGER A: THAT TftE TRACTS SHOW",n9ARAC-D ANC DE310frfTro :INS AVE,/ J� rAr�/F S7, I{UDZU JT �_ANTAI�IA4 $T, I f��IAXIGRLD ST. Anr4 AIASTURTIUM 997,, ARE -0 TG TNF r_°AFETV,gt U51 OF PCELlC AS PueLIC HIGH In':.YS AnI() THGRCUGNrA/PFS� THAT 74Sc TRAC7 S -0w'N. r. IGNATE"DJIU SA 10 PZAr A5 A1Rc5C 6 AY,./S HE'Rf0Y 44ANTf0, RFSF.RVE'D ANO L/MITFU TO THE PRIVATE USE SfA/r OR FUTURE 0WfVFR OA 0WA•'f1?S OF SAiO ALTOS Dri MAr, 5VrrDIVI_5I0N NUM64ri ,'L, OR cA AN P•4ovIDE0 THAT SAIb AIRO,90 G? AIuV BLOCk TNFr,FOF, MAY BE CLCSE'D AND UA.CA-rFr:, UPON .::. :OI.ISfiNT Cf ALL TNF CV.+NEli5 of THE Lc•TS AQuTr/NG• oN, T.4Ar PART OF SAID AIRCSD WAY $O TO 13k ?CVIpsO FL•`li'THFR T:IAT NO PART OP SA)D A/ri05c WAY SHALL Las CLOSC-D GR VACATi�-Q UNTIL T/J,- Non-rf•f JGN10 3410TI-4 ENDS OF -rNE &utics 0E1WEEry WNIC-L, T7" 15 DESIRED Te CLO5f OR VACA7c A PART 0 WAY, SHALL CE 1--AveD, RrAt)y ANo OPC--N FOR USE ArlD-rRAVEL OBTvvE-fN COI-i-lltij AVE. Ardp SAID Ev 6a1!>.?£SSLfY P)?o vIOkD rNAT 7-i4F TRACT MARKED AND SHOWN ON S,4)0 PLAT BY 0GT7-E,9 LINOS S AS I'rErnAGR4Ry POOP, /SIVOT AA'P $HALL NOT (3f INAUy CASt- OEptCArGp PO,Q EITHCR PUBLIC OR ANY RIND OA (!-uARACTER, AND TliAT rNE SAME SHALL QE CL05,C-0 FOR VJFCFANy KIND OR CmA/tACTkR 'TSR TNF 7-IJACT DB510AjArtD AS 11COLLIiJS /-I VI,' oN Sg10 PLAT STALL BF PAVED, RP jDy AND OPPN FOR USE n , dD rH.+T TNF r,QAC7S (AARXED TNEroN Am4-) t)FsIGA'A•Tf0 Dy THI: 4E77ER A, TuC-Er;4r-n WITH ALL RIPARIAN AEnG6D LANDS ADrAcEArr AND APPUR T6NANr 7'0 SAID T'RAC rS So MARKED A nRC- NERFOY GRANTED, INI17ED -ro T`!c PIVVATr USE ON/.y or THE PRESENT OR FVTURI owNFR OR CwnfE1?3 OF SAID ALTOS C1EL ;v NUM13ER ,Z, oR ANy PART TH[=REo'r EXPRESSLY DECLAriLC: T,uA7•N0 PART of SAID VVAV, NOA Atlyf'ART Vi-SAID TRACT AAARkLtl fNiPoR.4Ry A+r CP-SAID TRACT Sr. AAAR+;Ep A rlcw 15 vR SAS eE6N DEDICATED OR GRAAIT[D To T),-!: USE FOR AtdY PORPoSF, A :R nKAA/I/6R 0.1HATSVEVER, JVliertroF THE SAID T7A�TuM�TS—QCSAN PARK COMPANY, py OPOPR OF IT5 SoAiiD Of-L1RFCTORS, By ITS PREsS10BNr ANo -P- TATUM/ IT,$ SEcRF 7'AR`/, HA5 HERF.UNTU CAUSED ITS GORPOAATE NAME SE DAY Dr- JuN=, ED AND DELIVE,�ED TA TP fvl S5-,,OCEAN PARK COMPANY, :FNCE or-.- , BY •. /L �LwL __ -(1� ��� ,__. .'f. !rS PRfSrDEnIT• it � r'2 AT TEST _ .. ITS.SttRfTnRY, ' I D� �C DA F ME, A No-FARY PUL:?uc IN AND I'ZOR SAID 7 S-wrE T'NIS DRY PERSONALLY APPEARED x`' ,too NC -D.B• TA7Uti, 13E5PFCTIVGLY PRESIDENT OF THE TATVMrS OCE,4N PARJ{ COMPANY, CF FLORIDA, AND AG/iNOVvC-EDGED OEPONGME 'CUT,ED 7'Hr KORFGDING INSTRVAAENT r//R �j'!/!%rrj! � IT It OFSAID COMPANY/ AS $UCH CfFICERS,/=OR ,.r Pti.r� PURPOSES THE��IN FXARFSSfD,•gNp W1TU -Ty Sul TO D0, S MY'HAND ANO OFFIUAL SEAL THIS�IY Ip/�J AE-YF':.D%.' SrnrEof PL0R(OA 7. IJ115 510 N r X PI T i;.` .�Mrvvt��_ +D EXHIBIT A N rv.9 I I A, ,'f L-0 7 P-J,A S T Ll R T11 U PA ST. MARI COLD T 1. T F57 LAW TA NA 5 T.- LQ 3 61 6 UD Z U 5 T, to 3 Aj JASMINE S T. to C-OV-7 A-ot r 6d' Ili" IRIS ST MIAMI BEACH PLANNING DEPARTMENT COMMISSION MEMORANDUM TO: Jimmy L. Morales, City Manager FROM: Thomas R. Mooney, AICP Planning Director t�q DATE: September 5, 2014 SUBJECT: Analysis of Proposed Right of Way(ROW)Vacation—87th Terrace BACKGROUND Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of City-owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease. The proposal is to vacate 87th Terrace east of Collins Avenue. The right of way contains approximately 18,042 square feet in total lot area. The following is an analysis based on the criteria delineated in the Code. i ANALYSIS i 1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan. Consistent— The vacated ROW will continue to be used in a similar fashion as it is used today. It will continue to provide public access to the beach and pedestrian facilities will be greatly enhanced,improving the linkages between existing and proposed parking facilities on the west side of Collins Avenue and the beach through a parcel owned by Miami-Dade County. This is consistent with the Comprehensive Plan Conservation/Coastal Zone Management Element Objective 10, which states the following: Objective 10: PUBLIC SHORELINE ACCESS Increase the amount of public access to the beach or shoreline consistent with the estimated public need. 2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of EXHIBIT B Analysis of Proposed Right of Way Vacation—87"' Terrace September 5, 2014 Page 2 of 3 traffic impact is needed,the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. Consistent—No negative impacts are anticipated by the proposal. The property being vacated by the City is within the Medium Density Multifamily Residential (RM-2) future land use category. This category allows for a maximum floor area ratio (FAR)-of 2.0. Vacation of the ROW will allow approximately 36,084 additional square feet to. be developed within a unified development site with the parcel to the south. • Though a ROW is proposed to be vacated, no construction is being proposed within the vacated ROW; therefore there will be no diminution of open space. • Vacation of the ROW will not affect the transportation network, as the street presently dead ends at a waterfront parcel owned by Miami-Dade County, and vehicular access will be maintained. The use of the floor area that is made available from the vacation of the ROW could potentially generate up to approximately 19 peak hour trips if used for residential purposes. This does not represent a significant increase in peak hour volumes, and the level of service adopted in the Comprehensive Plan will continue to be maintained along Collins Avenue within the North Beach Transportation Concurrency Management Area. • No noise level impacts are anticipated from the vacation, as the use of the property will remain similar in nature. • The appearance of the property will improve with the.proposed vacation, as the approved development proposal includes pavers, landscaping,wider pedestrian paths, and other enhancements. These improvements should enhance surrounding property values. • Vacation of the ROW will allow for improved utilization of the adjacent parcel, and lead to improved development patterns throughout the North Beach area, which is in need of economic redevelopment. • Vacation of the ROW way will not impact adopted levels of service for public infrastructure. Compliance with parks and transportation concurrency for utilization of the floor area that maybe utilized to the south will be determined and mitigated in conjunction with the building permit process; however no additional utilities or infrastructure are expected to be necessary. 3. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the city's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life. Consistent-This proposal expands the City's revenue base by adding untaxed public property to the tax rolls. The additional floor area that is made available to the property to the south will create additional taxable value. In addition, the City will generate revenue from the sale of the ROW. The new development will create temporary construction jobs. It will also bring additional residents to the North Beach area. It is expected that the residents will patron local businesses in the North Beach area, which is need of economic development. We ore committed to providing excellent public service and safety to all who live,work,and ploy in our vibrant,tropical,historic community. Analysis of Proposed Right of Way Vacation-870 Terrace September 5, 2014 Page 3 of 3 4. A determination as to whether or not the development is in keeping with the surrounding neighborhood,will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project. Consistent-The surrounding neighborhood will not be negatively affected. The site is adjacent to a surface parking lot to the west and a hotel to the south owned by the applicant that will not be negatively impacted by the ROW vacation. The parcel to the north of the ROW is outside of the City limits; however, there is sufficient separation between that parcel and any proposed development so as to not significantly obstruct any views. In addition, that parcel does not utilize this ROW for access or.any other purposes. The parcel to the northwest is also outside the City limits, and contains a public park that will not be impacted by the proposed ROW vacation. No environmental intrusions will be created by the proposed ROW vacation. 5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Consistent-Vacation of this ROW will not affect the parking or infrastructure needs of adjacent properties. Surrounding properties are not dependent on the parking provided within this ROW should it be removed in the future. It is expected that public parking will be provided immediately to the west of the proposed vacation. j 6. Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition. Not applicable-The Planning Department has no other issues it deems appropriate to analyze for this proposal. CONCLUSION Vacation of the public ROW is consistent with the Goals, Ob*ectives, and Policies based on the approved proposals for the property. The vacation of the 87`, 7` Terrace public ROW will generate no negative impacts for the surrounding.area. The property would continue to serve in much the same manner, as public access to the beach will continue to be provided. TRM/RAM T:IAGENDA12014\September187 Terrace Planning Analysis.doc We are committed to providing excellent public service and safety to all who live, work,and play in our vibrant,tropical,historic community. NE THURSDAY,SEPTEMBER 4,2014 11SNE E A ,*� , , I /0-1 AM 1 CITY OF MIAMI.BEACH NOTICE OF PUBLIC HEARING NOTICE IS HEREBY given that a Second Reading/Public.Hearing will.be.held.by the Mayorand City Commission of the City of Miami Beach,-Florida,in the Commission Chambers,3rd.FWr, City Hall,.1700 Convention Center Drive,Miami.Beach,Florida,on Wednesday,September 11, 2014,tai consider the following: 5:20 p.m. A..RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLOR.IDA,,APPROViNG THF.,.VACATiON OF N.MERIDIAN AVENUE,BETWEEN 3.711' STREET AND 39m STREET, CONSISTING OF A 70 FOOT WIDE RIGHT-OF-WAY, CONTAINING APPROXIMATELY.)7,500 SQUARE FEET IN TOTAL AREA,AS SHOWN ON THE PLAT OF GARDEN SUBDIVISION RECORDED IN PLAT BOOK 29 AT PAGE 67;OFTHE PUBLIC RECORDS OF MIAMI-DADS COUNTY,IN FAVOR OF EDWARD,A..MCCARTHY, BISHOP OF DIOCESE. OF MIAMi, A/K/A ST. PATRICK'S CATHOLIC CHURCH AND SC1400L(THE.APPLICANT);WAIVING,BY 5/71"VOTE,THE COMPETITiVE.BIDDING' AND APPRAISAL RE UiR.EMENTS PURSUANT TO, RESPECTIVELY; SECTIONS 82= 39(a)AND(b)OF THE CITY CODE; FINDING THAT THE PUBLIC'INTEREST WOULD BE SERVED BY WAIVING SUCH. CONDITIONS; AND FURTHER CONDITIONING THE VACATION ON A COVENANT RUNNING WITH THE LAND THAT THE VACATED PROPERTY.NOT,BE'USED TOWARD FLOOR-AREA.RATIO (FAR),AND PRECLUDING CONSTRUCTION OF ANY STRUCTURE:OR IMPROVEMENTS WiTHIN THE VACATED PROPERTY hrquiries may he directed to the Public lYnrl<s Department at 305.673.7080. 5:25 p.m. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,APPROVING-TI-1E VACATION OF TIIAT PORTION OF 8.7TI-I TERRACE LAST OF COLLINS AVENUE..,CONSISTING OF A 50.FOOT RIGHT-OF-WAY(ROW)CONTAINING APPROXIMATELY, 18,042 SQUARE FEET IN TOTAL: LOT AREA, AS SHOWN ON THE PLAT OF ALTOS.DEL.MAR SUBDIVISION NO..2,RECORDED IN PLAT BOOK.4, PAGE 162 OF THE PUBLIC.R.ECORDS OF MIAMi-DADS COUNTY, IN FAVOR OF 8701 COLLINS AVENUE; LLC (THE.. "APP.LiCANT");.WITH.-SUCH VACATION SUBJECT TO AND CONTINGENT'UPON'THE CITY'S APPROVAL,AND THE CITY AND.APPLICANT'S EXECUTION OF A DEVELOPMENT AGREEMENT WITH THE CITY WHICH,AMONG OTiiERTERMS AND CONDITIONS(1),GR ANTS TOT]IE CITY OF A TEN.FOOT(10')WIDE PERPETUAL ACCESS EASEMENT ACROSS TFIE.NORTI•iERN-MOST PORTiON.OF TIME. VACATED CITY ROW AND(2)ENSURES APPLICANT'S PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION IN THE.AMOUNT OF$1.0.5 MILLION DOLLARS,30 BE' USED BY THE CITY FOR IMPROVEMENTS TO NORTH BEACH OPEN SPACE.,PARK.-AND SUCH OTHER PUBLIC PURPOSES AS.THE CITY MAY DEEM IN'THE BEST:INTEREST OF iTS RESIDENTS AND VISITORS; WITH SUCH VACATION FURTHER SUBJECT TO AND.CONTINGENT UPON APPLICANT'S SATISFACTION OF THE CONDITIONS SET. FORTH IN.THIS RESOLUTION.1ngrdriev.mav:be ditrcted to the Public WejAw Department(it 305.673.7080. INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent; or to express their views in writing addressed to the City Commission,c/o the.City Clerk., 1700 Convention Center Drive, I' Floor;City Hall,Miami Beach,Florida.33139 Copies of these items are available for public inspection during normal business.hours,in.the Office of the City Clerk, 1700 Convention Center Drive, t°'Floor,City Mall,Miami Beach,Florida:33139.This meeting, or auy.item.herein,may be continued,and under such circumstances,additional legal notice need not.be.provided. Pursuant to Section 286.0105,Fla..Stat.,the City hereby advises the public that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at.its meeting'or.its hearing,such person must ensure that a'verbatim record of the proceedings is made, which record includes theaestimony and evidence upon which the appeal.is:to be based.This'notice does not constitute consent by the City for the introduction or.adm.ission of otherwise inadmissible or irrelevant evidence,nor does it authorize challenges.or appeals not otherwise.allowed.by law: To request this-material-in accessible format,signlanguage interpreters,information on access•for persons with disabilities and/or any accommodation to review-any.document or participate in any City-sponsored.proceeding,please contact'us five flays in advance at 305.673.741-I(voice)orTTY users may also call the.Florida Relay Service at 711. Rafael E.Granado,City Clerk- #921 City of.Miami Beach i MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of the City Commission SECOND READING FROM: Jimmy L. Morales, City Manager PUBLIC HEARING Raul Aguila, City Attorney DATE: November 19, 2014 . SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, APPROVING, FOLLOWING SECOND READING/PUBLIC HEARING A DEVELOPMENT AGREEMENT AS AUTHORIZED UNDER SECTION 118-4 OF THE CITY CODE, AND SECTIONS 163.3220 — 163.3243, FLORIDA STATUTES, BETWEEN THE CITY AND 8701 COLLINS DEVELOPMENT, LLC ("87011"), WHICH DEVELOPMENT AGREEMENT: (1) MEMORIALIZES THE CONDITIONS FOR VACATING THE CITY'S RIGHT OF WAY AT 87TH TERRACE EAST OF COLLINS AVENUE ("CITY PARCEL"); (2) GRANTS TO THE CITY A PERPETUAL PEDESTRIAN ACCESS EASEMENT ACROSS A PORTION OF THE VACATED CITY PARCEL; (3) ENSURES THE PAYMENT TERMS FOR 870195 PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION, IN THE AMOUNT OF $10.5 MILLION DOLLARS, TO BE USED BY THE CITY FOR PUBLIC PURPOSES; AND (4) DELINEATES THE CONDITIONS FOR THE CONSTRUCTION OF THE PROJECT LOCATED AT 8701 COLLINS AVENUE AS A HOTEL AND/OR RESIDENTIAL CONDOMINIUM SITE. On September 17th, 2014, after second reading public hearing, the City Commission approved Resolution No. 2014-28754, and shall be referred to as the "Vacation Resolution", approving with conditions, the vacation of a 50 foot wide right-of- way, running from Collins Avenue, east 360 feet to Tract "A", currently known as 87th Terrace (hereinafter "City Parcel") in favor of 8701 Collins Development, LLC ("8701 In contemplation of the hotel, condo-hotel and/or residential condominium Project, 8701 is required to enter into a Development Agreement with the City pursuant to Sections 163.3220 — 163.3243, Florida Statutes ("Development Agreement") to memorialize the terms and conditions of the Project, including the vacation of the City Parcel, and any other conditions imposed by the City Commission. The material provisions of the attached Development Agreement include: Agenda Item Date - - i Development Agreement with 8701 Collins Avenue LLC, Second Reading-Public Hearing November 19, 2014 Page 2 of 3 • The zoning district requirements for the RM-2 district and permitted uses for the site. The City is also provided the right to enforce certain "quality of life" issues and laws that may be enacted after execution of the Development Agreement. • Payment terms for the voluntary public contribution (hereinafter the "Voluntary Contribution") of $10.5 Million to the City in connection with the vacation of the City Parcel. All funds shall be allocated to public projects in North Beach, as shall be determined by the City Commission, in its sole and reasonable discretion. On October 29, 2014, the City Commission enacted Resolution 2014- 28815, which accepted the recommendation of the Finance and Citywide Projects Committee with respect to disposition of the Voluntary Contribution. • 8701 will make the first payment, in the amount of $1,000,000, within ten (10) business days following the City Commission's final approval of the Development Agreement. This payment will be non-refundable. • 8701 will apply for a full building permit for the Project, using commercially reasonable efforts, no later than February 19, 2016. • 8701 will pay the City $4.5 million on the earlier of: (i) within ten (10) business days of the issuance of a full building permit for the-Project, or (ii) November 19, 2016. The actual vacation of the City Parcel shall be effective as of the date the 8701 makes the $4.5 million payment. The $4.5 million payment shall be non- refundable. • 8701 will pay the remaining $5 million in four (4) equal payments of $1.25 million every six (6) months starting on the earlier of: (i) six (6) months after the City's issuance of the full building permit for the Project, or (ii) May 19, 2017; provided, however, that the entire amount remaining to be paid shall be paid ten (10) days prior to the issuance of a temporary certificate of occupancy (TCO) or certificate of occupancy (CO), whichever comes first, for the Project. The City may condition and withhold the issuance of the TCO or CO for the Project upon full and final payment of the remaining balance of the Voluntary Contribution. The $5 million payment shall also be non-refundable. Please note, that a condition of the vacation resolution was that should litigation ensue, the City, at its option, could return the final $5,000,000 payment and rescind the vacation of 87th Terrace. This became a financing issue for developer. The term was modified to reflect that the final $5,000,000 payment is nonrefundable. Either way, 8701 is to indemnify and hold the City harmless, and pay for counsel of the City's choice should there be litigation relating to the Development Agreement. • Conditions for transfer to the City a perpetual public pedestrian access easement over a portion of the City Parcel (vacated ROW), in order to provide beach access to the public (the "City Easement"). The proposed easement shall be held in escrow, pending closing on the Development Agreement, and the conditions relating to same. 8701 shall provide $350,000 towards the construction of the City's easement area. The maintenance agreement for 87th Street is an exhibit to the Development Agreement and includes a voluntary proffer by the developer of$750,000, in hard costs, towards the development of the street. A preclusion from 8701 in assigning or transferring its rights under the Development Agreement with 8701 Collins Avenue LLC, Second Reading-Public Hearing November 19, 2014 Page 3 of 3 Development Agreement until after the earlier of (i) issuance of a Certificate of Occupancy ("CO") for the Project, or (ii) the payment of all of the Voluntary Contribution. • Reimbursement by 8701 of City's outside counsel costs in preparing the Development Agreement. The City Attorney has hired Stacy H. Krumin, of Squire Patton Boggs (US) LLP, to assist with the expedited drafting of the Development Agreement. The City Attorney's Office and the City Manager's Office received red-lined comments to the attached Development Agreement during the evening of October 27, 2014. During the October 29, 2014 City Commission meeting, following a duly noticed public hearing, the City Commission approved the draft Development Agreement on first reading (Resolution No. 2014-28814). Thereafter, the City Attorney and 8701 negotiated the final terms of the Development Agreement (attached). The City has complied with all notice requirements of Section 118-4 and Section 163.3225, Florida Statutes. Recommendation: The City Manager and City Attorney's Office recommends that the City Commission approve the Resolution and the attached Development Agreement, after second reading/public hearing; and authorize the Administration and the City Attorney's Office to proceed to Closing on the Development Agreement. This instrument was prepared by (record and return to): Jeffrey Bercow, Esq Bercow Radell & Fernandez, P.A. 200 S. Biscayne Boulevard, Suite 850 Miami, Florida 33131 (305) 377-6220 (Space reserved for Clerk) DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (the "Agreement") is made and entered into as of the day of 2014, by and among the CITY OF MIAMI BEACH, a Florida municipal corporation (the "City"), and 8701 COLLINS DEVELOPMENT LLC, a Delaware limited liability company (the "Owner"): Introduction A. The property that is the subject of this Agreement lies in Miami Beach, Miami- Dade County, Florida. This Agreement, among other things, is intended to and shall constitute a development agreement between the parties pursuant to Sections 163.3220-163.3243, Florida Statutes, the "Florida Local Government Development Agreement Act" and Section 118- 4 of the City's Code. B. The Owner owns the property located at 8701 Collins Avenue, Miami Beach, Florida (the "Property") and intends to redevelop the Property with a hotel and/or residential development substantially in accordance with the provisions contained in this Agreement. C. The City-is desirous of improving 87th Street which abuts the Property to the south, and 87th Terrace, which abuts the Property to the north, and has agreed to vacate the public right-of-way on 87th Terrace and enter into a maintenance agreement with Owner for 87th Street in order to enhance access to the beach and improve the aesthetics of the area. 1 285861/9/TAMPA D. The City wishes to obtain from the Owner, and Owner is willing to grant, a permanent pedestrian access easement over 87th Terrace, to provide the public with pedestrian access from Collins Avenue to the beach. E. Pursuant to City Resolution No. 2014-28754 (the "Vacation Resolution"), the City approved the vacation of 87th Terrace, subject to and conditioned upon the terms and conditions contained in such Vacation Resolution, including, without limitation, (1) the grant by the Owner to the City of the 87th Terrace Easement; (2) the Owner and City entering into the maintenance agreement for 87th Street; (3) the Owner's commitment to expend funds and prepare the 87th Street Plans and the 87th Terrace Plans at the Owner's expense; (4) the Owner's commitment to expend funds and construct the 87th Street Improvements and the 87th Terrace Easement Improvements at the Owner's expense; and (5) the Owner's commitment to provide the City with a voluntary monetary contribution of $10,500,000 (the "Voluntary Contribution") to be allocated as described in Section 7 of this Agreement. F. The City is a Florida municipal corporation with powers and authority conferred under the Florida Constitution, the Municipal Home Rule Powers Act, Florida Statutes and the Miami Beach City Charter and Code of Ordinances. The City has all governmental, corporate and proprietary powers to enable it to conduct municipal government, perform municipal and governmental functions, and render municipal services, including the authority to adopt, implement and enforce (together with any other required governmental approvals) comprehensive plans, zoning ordinances, redevelopment plans, and other police power and legislative measures necessary to assure the health, safety and general welfare of the City and its inhabitants. G. Having fully considered this Agreement at two duly noticed public hearings in compliance with Section 163.3225 of the Act; having determined that the Project and this Agreement are in compliance with the City's Comprehensive Plan and Land Development Regulations as of the Effective Date; and having further determined that it is in the City's best interest to address the issues covered by this Agreement in a comprehensive manner, in compliance with all applicable laws, ordinances, plans, rules and regulations of the City, the City has agreed to enter into this Agreement with the Owner. H. The City has determined that the Project, the 87th Street and 87th Terrace Easement Improvements, and the Voluntary Contribution will benefit the City and the public. The Project and the 87th Street and 87th Terrace Easement Improvements will improve a northern entrance to the City and a significant North Beach location. The Project is compatible with the area and will serve as a catalyst in the City's continuing efforts to revitalize the North Beach area. The 87th Street Improvements and the 87th Terrace Easement Improvements will 2 285861/9/TAMPA renovate and beautify the northern end of North Shore Open Space Park and provide public pedestrian access to the beach. I. All capitalized terms used in this Introduction are defined in Section 3 or elsewhere in this Agreement. NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby-agree as follows: 1. Recitations. The foregoing recitations are true and correct and are incorporated herein by this reference. 2. Authority. This Agreement is entered into pursuant to the authority and procedures provided by the Act. 3. Definitions. All capitalized terms in this Agreement shall have the definitions set forth in this Section unless such terms are defined elsewhere in the body of this Agreement. 3.1 "Act" shall mean the Florida Local Government Development Agreement Act (Sections 163.3220- 163.3243, Florida Statutes (2014)). 3.2 "Closing" shall refer to the formal exchange of documents between the parties, as further described in Section 13 of this Agreement. 3.3 "Comprehensive Plan" shall mean the comprehensive plan which the City has adopted and implemented for the redevelopment and continuing development of the City pursuant to Chapter 163 Part II, of the Florida Statutes. i 3.4 "Development Order" means any order granting, denying, or granting with conditions an application for a Development Permit. 3.5 "Development Permit" shall have the meaning set forth -in Section 163.3221(5), Florida Statutes (2014). 3.6 "Effective Date" is the date when the City records the executed Agreement in the Public Records of Miami-Dade County, as provided in Section 163.3239, Florida Statutes (2014), and Section 19(a) of this Agreement. 3.7 "Execution Date" is the date the last of the required parties executes this Agreement. 3.8 "Land Development Regulations" shall have the meaning set forth in Section 163.3221(8), Florida Statutes (2014) and shall also include, without limitation, the definition of"land development regulations" in Section 114-1 of the City Code. 3 285861/9/TAMPA 3.9 "Laws" means all ordinances, resolutions, regulations, the Comprehensive Plan, Land Development Regulations, and rules adopted by a local government having jurisdiction affecting the development of land, specifically including the City's Comprehensive Plan and the City's Land Development Regulations. 3.10 "Project" shall mean the construction and development of the Property (as defined in Section 3.11 below and to include the Owner's right, title and interest to the 87th Terrace Property after the 87th Terrace Vacation Date) consistent with the RM-2 zoning regulations of the City's Land Development Regulations and the following provisions (with the stricter of the two prevailing): (a) The maximum total floor area permitted upon the Property shall not exceed that provided by the City's Land Development Regulations for the purposes of determining population densities and building intensities as required by the Act. In the event that the existing hotel is retained and the Property is developed as two building sites, the maximum permitted floor area on the Property shall be 260,085 square feet. In the event that the hotel is removed and the Property is reduced to a single building site, the maximum floor area developed on the Property shall be 202,358 square feet. (b) The height of any habitable building on the Property shall not exceed 200 feet to the top of the roof, and architectural projections will comply with the terms of the City's Land Development Regulations. (c) The uses permitted on the Property shall be up to 232 residential units, including single-family detached dwellings; townhomes; condominiums; apartments; apartment-hotels; hotels; condo/hotel units; and appurtenant facilities, including, without limitation, (i) facilities for conventions, banquets and other functions; (ii) spa; (iii) restaurants (subject to compliance with the City's neighborhood impact establishment regulations); (iv) parking facilities; (v) administrative office space; and (vi) any other hotel related uses including accessory uses commonly associated with hotels, as permitted under the City's Land Development Regulations; provided, however that in no event shall more than twenty-five percent (25%) of the accessory use be that which is generally classified as a "place of assembly" or "hall for hire" by the City. (d) The Project shall include on-site parking in accordance with the provisions of the City's Land Development Regulations. (e) The Owner shall cause the completion of the Project and shall obtain a certificate of occupancy or certificate of completion, as applicable, within five (5) years of the Effective Date. 3.11 "Property" shall mean the parcel of real property described in Exhibit A hereto. From and after the 87th Terrace Vacation Date, the Property shall include all of the Owner's right, title and interest in and to the 87th Terrace Property pursuant to the vacation of 4 285861/9rrAMPA 87th Terrace as approved pursuant to, and subject to and conditioned upon, the terms of the Vacation Resolution. 3.12 "Owner" means the person or entity undertaking the development of the Property, as defined in the preamble to this Agreement, or any permitted successors, assigns, or heirs thereof. 3.13 "Vacation Resolution" means the City's Resolution No. 2014-28754, approving, with conditions, the vacation of the 87th Terrace Property. 3.14 "87th Street Maintenance Agreement" shall mean the agreement between the City and Owner relating to the use, improvement, maintenance and operation of the public pedestrian access area located on the 87th Street Property, which agreement shall be in the form attached hereto as Exhibit B. 3.15 "87th Street Property" shall mean the area described in Exhibit "A" to the 87th Street Maintenance Agreement. 3.16 "87th Terrace Easement" shall mean a perpetual easement for public pedestrian traffic on, across and through the 87th Terrace Property for the purpose of allowing pedestrians to continue to use a portion of the 87th Terrace Property for public access to the beach and Atlantic Ocean, which easement shall be in the form attached hereto as Exhibit C. The property subject to the 87th Terrace Easement shall be referred to as the "87th Terrace Easement Property". 3.17 "87th Terrace Property" shall mean the area described in Exhibit "A" to the 87th Terrace Easement. 3.18 "87th Terrace Vacation Date" shall mean the date when the actual vacation of the 87th Terrace Property becomes effective in accordance with the terms of the Vacation Resolution, and as set forth in subsection 6(b)(iii) of this Agreement. 3.19 "87th Street Improvements" shall mean the improvements to be made to the 87th Street Property as depicted in the 87th Street Plans, and as further described in Section 8 of this Agreement. 3.20 "87th Terrace Easement Improvements" shall mean the improvements to be made to the 87th Terrace Property as depicted in the 87th Terrace Plans, and as further described in Section 9 of this Agreement. 3.21 "87th Street Plans" shall mean the plans, designs, and drawings including any revisions and enhancements thereto, depicting the 87th Street Improvements, as further described in Section 8 of this Agreement. 5 285861/9/TAMPA 3.22 "87th Terrace Plans" shall mean the plans, designs, and drawings including any revisions and enhancements thereto, depicting the 87th Terrace Easement Improvements, as further described in Section 9 of this Agreement. 4. _87th Street Maintenance Agreement. Subject to the terms and conditions of this Agreement, at the Closing the Owner and the City shall execute the 87th Street Maintenance Agreement in the form attached hereto as Exhibit B. 5. 87th Terrace Easement. Subject to the terms and conditions of this Agreement and the Vacation Resolution, the 87th Terrace Easement shall be granted by the Owner to the City and recorded in the Public Records of Miami-Dade County, Florida, promptly after the 87th Terrace Vacation Date, and shall be in the form attached hereto as Exhibit C. 6. Vacation of 87th Terrace and Voluntary Contribution. (a) The Owner submitted an application to the City for the vacation of 87th Terrace and, on September 17th, 2014, after second reading public hearing, the City Commission approved the Vacation Resolution. The 87th Terrace Property shall be included within the Property as of the 87th Terrace Vacation Date. At that time, the City shall deliver to Owner all instruments reasonably required to effectuate the vacation of the 87th Terrace Property, including, without limitation, a certified copy of the executed Vacation Resolution. (b) As a condition to the City's approval of the Vacation Resolution, Owner shall make a Voluntary Contribution to the City, in the amount of$10,500,000. Owner shall pay the $10,500,000 Voluntary Contribution to the City as follows: (i) The Owner shall make the first payment, in the amount of $1,000,000, within ten (10) business days following the City Commission's (A) approval of the Vacation Resolution and (B) final approval of this Agreement at the second public hearing. This payment will be non-refundable. (ii) The Owner shall apply for a full building permit, as such term is defined in the City's Land Development Regulations, for the Project, using commercially reasonable efforts, no later than February 19, 2016. (iii) The Owner shall pay the City $4.5 million on the earlier of (A) within ten (10) business days of the issuance of a full building permit for the Project, or (B) November 19, 2016. Following the City's receipt of said payment and so long as there is no pending or uncured Event of Default (as hereinafter defined) hereunder, and Owner and City have successfully closed in accordance with the requirements of Section 13 hereof, the 87th Terrace Easement shall be released from escrow and the 87th Terrace Vacation Date shall become effective. Additionally, as of such date the 87th Terrace Easement Property shall be free and clear of all liens, encumbrances, rights of occupancy, or other matters except only for any then-existing mortgage encumbering the Property; provided 6 285861/9/TAMPA that the holder of any such mortgage shall execute and deliver an appropriate subordination agreement, in a form which will be reviewed and approved by the City, in its reasonable discretion, subordinating the lien and rights of such mortgage holder to the rights of the City and the public. Notwithstanding the preceding, the occurrence of the 87th Terrace Vacation Date shall not relieve Owner of its obligations to diligently prosecute and complete the 87th Street and 87th Terrace Improvements. (iv) The Owner shall pay the remaining $5 million in four (4) equal payments of $1.25 million every six (6) months starting on the earlier of: (A) six (6) months after the City's issuance of the full building permit for the Project, or (B) May 19, 2017, provided, however, that the fourth and final installment shall be paid no later than ten (10) days prior to the issuance of a temporary certificate of occupancy (the "TCO") or certificate of occupancy (the "CO"), whichever comes first, for the Project. In addition to declaring an Event of Default under this Agreement, the City may condition and withhold the issuance of the TCO and/or CO for the Project pending full and final payment of the remaining balance of the Voluntary Contribution. The $5 million payment shall also be non-refundable, as and when each payment is made. 7. City Allocation of Voluntary Contribution. The Voluntary Contribution will be allocated in accordance with the terms of City Resolution No. 2014-28815. 8 87th Street Improvements. The Owner, at its sole expense, shall design, construct and install the 87th Street Improvements. - (a) The Owner shall cause the 87th Street Plans to be prepared by an architect or other design professional selected by the Owner and approved by the City (such approval by the City shall be proprietary in nature, as the owner of such property, and is not to be unreasonably withheld or delayed). The 87th Street Plans shall be submitted to the City,to its City Manager, within ninety (90) days of the Effective Date. The City shall have twenty (20) business days to review the 87th Street Plans and provide its written comments, if any, to Owner. The Owner shall address such comments and respond with revised 87th Street Plans within twenty (20) business days of its receipt of the City comments. This process shall be repeated until the City approves the 87th Street Plans. Owner's failure to obtain the City's approval of the 87th Street Plans by the date which is two hundred seventy (270) days from the Effective Date shall be deemed an Event of Default under this Agreement. (b) Within one hundred eighty (180) days after the ' City's proprietary approval pursuant to subsection 8(a) above, the Owner apply for and diligently pursue all required permits and final non-appealable approvals including, without limitation, all required Development Orders and Development Permits, for the 87th Street Improvements. 7 285861/9/TAMPA (c) The existing geometry of 87th Street shall be substantially followed in the design of the 87th Street Improvements. No change in the location of the sidewalks, curbs and gutters shall be permitted without the prior written consent of the City. (d) The 87th Street Improvements shall include, at a minimum, the following: (i) Lighting; (ii) Resurfacing, drainage, hardscaping, paving; (iii) Landscaping and related irrigation; (iv) Outdoor seating and other outdoor furniture; (v) Sidewalk; (vi) City-approved street signage; including directional signage, beach access signage and similar signs (including private signage); and (vii) Gates and fences (so long as at least a ten (10) foot access to the beach always remains open). (e) The Owner will complete the 87th Street Improvements by the date of the issuance of a temporary or final certificate of occupancy or certificate of completion, as applicable, for the Project. The City may condition and withhold the issuance of the TCO or CO for the Project pending completion of the 87th Street Improvements. (f) Owner hereby covenants and agrees that it shall invest, or cause to be invested, no less than $750,000 in hard construction costs for the 87th Street Improvements. Upon issuance of the TCO or CO for the Project, whichever is first, Owner shall certify to City that it has, in fact, expended the aforestated construction costs. 9 87th Terrace Easement Improvements. The Owner, at its sole expense, shall design, construct and install the 87th Terrace Easement Improvements within the area described in the 87th Terrace Easement. (a) The Owner shall cause the 87th Terrace Plans to be prepared by an architect or other design professional selected by the Owner and approved by the City (such approval by the City shall be proprietary in nature, as the owner of such property, and is not to be unreasonably withheld or delayed). The City shall review the 87th Terrace Plans as part of the development permit package(s) for the Project. The 87th Terrace Plans shall be submitted to the City, to its City Manager within ninety (90) days of the Effective Date. The City shall have twenty (20) business days to review the 87th Terrace Plans and provide its written comments, if any, to Owner. The Owner shall address such comments and respond with revised 87th Terrace Plans within twenty (20) business days of its receipt of the City comments. This process shall be 8 285861/9/TAM PA repeated until the City approves the 87th Terrace Plans. Owner's failure to obtain the City's approval of the 87th Terrace Plans by the date which is two hundred seventy (270) days from the Effective Date shall be deemed an Event of Default under this Agreement. (b) The Owner shall direct the construction process and be responsible for entering into all contracts necessary for the construction of the 87th Terrace Easement Improvements and within one hundred eighty (180) after the City's proprietary approval pursuant to subsection 9(a) above, the Owner apply for and diligently pursue all required permits and approvals for the 87th Terrace Easement Improvements with the City's cooperation. (c) The 87th Terrace Easement Improvements shall include, at minimum, the following: (i) Lighting within the Easement area; (ii) Resurfacing, drainage, hardscaping, paving; (iii) Landscaping and related irrigation either within or adjacent to the 87th Terrace Easement area designed in a manner that benefits the 87th Terrace Easement; (iv) Sidewalk within the Easement area; (v) City-approved directional signage, beach access signage and similar signs (excluding private signage) either within the Easement area or immediately adjacent thereto; and (vi) Gates and fences (so long as a ten (10) foot access to the beach always remains open). (d) The 87th Terrace Easement Improvements must be completed by the earlier of the date of the issuance of a TCO or CO for the Project. The City may condition and withhold the issuance of the TCO or CO for the Project pending completion of the 87th Terrace Easement Improvements. (e) Owner shall be responsible for the maintenance and security relating to the 87th Terrace Easement area. f ( ) Owner hereby covenants and agrees that it shall invest, or cause to be invested, no less than $ 350,000 in hard costs for the 87th Terrace Easement Improvements. Upon issuance of the TCO or CO for the Project, whichever is first, Owner shall certify to City that it has, in fact, expended the aforestated construction costs. 9 285861/9/TAMPA 10. Development Permits. Certain provisions of this Agreement will require that the City and/or its boards, departments or agencies take certain governmental actions, acting in their governmental capacity and issue Development Permits in order to accomplish and satisfy the following: (a) The inclusion of approximately 36,400 square feet of floor area development rights in the Property as a result of the City's vacation of the 87th Terrace right-of- way; and (b) The authorization of the 87th Street Improvements. 11. Applications for Development Approvals and Development Permits. Promptly following the effective date of this Agreement, the Owner will initiate and diligently pursue all applications for Development Orders and Development Permits that were not previously initiated. The City shall process all Development Permit and Development Order applications in a timely fashion and join in application(s) as may be necessary. Notwithstanding the foregoing, Owner shall be solely responsible for obtaining all final, non-appealable Development Orders and Development Permits for the Project, the 87th Street Improvements and the 87th Terrace Easement Improvements. No extension of any time period herein shall be deemed to be an extension of any time periods contained within the Development Permits or Development Orders. 12. Laws Governing this Agreement. For the entire term of this Agreement, the City hereby agrees that the City's Land Development Regulations governing the development of the Property as they exist as of the Execution Date of this Agreement shall govern the development of the Property and the Project during the Term. Notwithstanding the foregoing, the City may apply subsequently adopted laws or policies to the Property and the Project (particularly as they may relate to qualify of life issues such as, but not limited to noise, litter, and hours of operation) as permitted or required by the Act, including, without limitation, Section 163.3233(2), Florida Statutes, as same may be amended from time to time; provided, however, that this provision shall not be deemed to apply to regulations governing height, floor area ratio (FAR), density, parking requirements or permitted uses. 13. Closing. So long as there is no pending or uncured Event of Default, the parties shall exchange (or deposit into escrow) those document as set forth below to effect the Closing hereunder. The Closing will occur within thirty (30) days of the Effective Date. (a) At the Closing, the City shall execute and/or deliver to Owner or into escrow the following items: (i) The 87th Street Maintenance Agreement. (ii) A certified copy of the Vacation Resolution for recording in the Public records of Miami-Dade County, which shall be held in escrow pursuant to 10 285861/9/TA M PA the Escrow Agreement, the form of which is attached hereto as Exhibit H (the "Escrow Agreement"). (iii) The Escrow Agreement. (b) At the Closing, the Owner shall execute and/or deliver (as appropriate) to the City or into escrow the following items: (i) The 87th Street Maintenance Agreement. (ii) The 87th Terrace Easement, which shall be held in escrow pursuant to the Escrow Agreement. (iii) Any subordination agreement that may be required pursuant to Subsection 6(b)(iii)(C) of this Agreement, which shall be held in escrow pursuant to the Escrow Agreement. (iv) The Escrow Agreement. 14. "As Is" Condition. Owner agrees to accept the 87th Terrace Property in "as-is" physical condition without any representation or warranty by the City regarding physical condition. The City agrees to accept the 87th Terrace Easement with the underlying land and improvements (if any) in "as-is" condition, subject to Owner's subsequent compliance with the terms of Section 9 of this Agreement. 15. Compliance with Local Regulations Regarding Development Permits. This Agreement is not and shall not be construed as a Development Permit, approval or authorization to commence any development, fill, or other land modification. The Owner and the City agree that the failure of this Agreement to address a particular permit, approval, procedure, condition fee term or restriction in effect on the Execution Date of this Agreement p g shall not relieve Owner of the necessity of complying with the regulation governing said permitting requirements, conditions, fees, terms or restrictions, subject to the terms of Section 12 of this Agreement. 16. Reservation of Rights. This Agreement shall not affect any rights that may have accrued to any party to this Agreement under applicable laws and each party hereto reserves any and all of such rights. 17. Consistency with the City's Comprehensive Plan. The City has adopted and implemented the Comprehensive Plan. The City hereby finds and declares that the provisions of this Agreement dealing with the Property and the Project are consistent with the City's Comprehensive Plan and Land Development Regulations (subject to all applicable requirements, permits and approvals). 11 28586119/TAMPA 18. Concurrency. Owner shall be solely responsible for obtaining all land use permits, including, but not limited to, all permits and approvals required pursuant to Section 163.3180, Florida Statutes (2014), with respect to concurrency requirements for roads, sanitary sewer, solid waste, drainage, potable water, parks and recreation, and schools (the "Concurrency Requirements"). Prior to applying for its buildin g p ermit for the Project, Owner shall apply to the appropriate Governmental Authorities and obtain letters or other evidence that Owner has obtained all applicable Concurrency Requirements, and shall diligently and in good faith obtain such letters or other evidence that the Project meets all applicable Concurrency Requirements and shall pay such impact fees as may then be due or applicable to meet Concurrency Requirements. 19. Effective Date and Duration (Term). (a) Within fourteen (14) days following approval at two public hearings and execution by all parties, the City shall record the Agreement in the Public Records of Miami- Dade County. The Owner shall submit a copy of the recorded Agreement to the State of Florida's land planning agency within fourteen (14) days after this Agreement is recorded. This Agreement shall become effective only after (i) it has been recorded in the Public Records of Miami-Dade County, Florida, and (ii) thirty (30) days have elapsed after the State of Florida land planning agency's receipt of a copy of the recorded Agreement. The Owner agrees that it shall be responsible for all recording fees and other related fees and costs related to the recording and delivery of this Agreement as described in this Section. (b) This Agreement shall run for an initial term of six (6) years from the Effective Date (the,"Term"), and may be extended by mutual consent of the City and the Owner subject to a public hearing pursuant to Section 163.3225, Florida Statutes. Consent to any extension of this Agreement is within the sole discretion of each party to this Agreement. No notice of termination shall be required by either party upon the expiration of this Agreement, and thereafter the parties hereto shall have no further obligations under this Agreement except that in no event shall the Owner's obligation to pay the Voluntary Contribution be extinguished by the expiration of the term if it has not otherwise been paid. 20. Presently Permitted Development. The development that is presently permitted on the Property, including population densities, and building intensities and height, which are subject to this Agreement, are more specifically set forth in Exhibit D hereto. 21. Public Facilities to Serve the Property. A description of the public facilities that will service the Project of the properties subject to this Agreement, including who shall provide such facilities; the date any new facilities, if needed, will be constructed; and a schedule to assure public facilities are available concurrent with the impacts of the development is included as Exhibit E hereto. 12 285861/9/TAMPA 22. Public Reservations and/or Dedications. A description of the reservations and/or dedications of land for public purposes that are proposed under the terms of this Agreement is included as Exhibit F hereto. 23. Required Development Permits. Attached and made a part hereof as Exhibit G is a listing and description of all local development permits approved or needed to be approved for the development of the Project. 24. Default. Each of the following shall be an "Event of Default" by Owner hereunder: (a) If Owner shall fail to observe or perform any term, covenant or condition of this Agreement on Owner's part to be observed or performed and Owner shall fail to cure or remedy the same within ten (10) days of Owner's receipt of written notice from the City, with respect to monetary defaults, or within thirty (30) days of Owner's receipt of written notice from the City with respect to non-monetary defaults (each, a "Default Notice"). If such non- monetary default is susceptible to cure but cannot reasonably be cured within said thirty (30) day period, then Owner shall have any additional sixty (60) day period to cure such failure and no Event of Default shall be deemed to exist hereunder so long as Owner commences such cure within the initial thirty (30) day period and diligently and in good faith pursues such cure to completion within such resulting ninety (90) day period from the date of the Default Notice. (b) If, after the Effective Date, Owner shall fail to obtain all Development Orders and Development Permits which are necessary for the Project, the 87th Street Improvements and the 87th Terrace Easement Improvements by November 19, 2018. (c) If, after the Effective Date, Owner shall fail to obtain a full building permit for the Project by November 19, 2016. (d) If, during the construction phase of the Project, the 87th Street Improvements and/or the 87th Terrace Easement Improvements, Owner shall stop work on any of the aforestated for a period in excess of ninety (90) days. (e) If, after the Effective Date, Owner has not obtained a final CO for the Project by November 19, 2018. (f) If Owner shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall consent to the appointment of a receiver or trustee or liquidator of all of its property or the major part thereof or if all or a substantial part of the assets of Owner are attached, seized, subjected to a writ or distress warrant, or are levied upon, or come into the possession of any receiver, trustee, custodian or assignee for the benefit of creditors. (g) If Owner shall commence a voluntary case under the Title 11 of the United States Code (the "Bankruptcy Code") ; or an involuntary proceeding is commenced 13 285861/9/TAMPA against Owner under the Bankruptcy Code and relief is ordered against Owner, or the petition is controverted but not dismissed or stayed within one hundred fifty (150) days after the commencement of the case, or a custodian (as defined in the Bankruptcy Code) is appointed for or takes charge of all or substantially all of the property of Owner and is not discharged or dismissed within one hundred fifty (150) days; or Owner commences any other proceedings under any reorganization, arrangement, readjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar Law of any jurisdiction whether now or hereafter in effect relating to Owner; or there is commenced against Owner any such proceeding which remains undismissed or unstayed for a period of.one hundred fifty (150) days; or Owner fails to controvert in a timely manner any such case under the Bankruptcy Code or any such proceeding, or any order of relief or other order approving any such case or proceeding is entered; or Owner consents to or approves of, in any such case or proceeding or the appointment of any custodian or the like of or for it for any substantial part of its property or suffers any such appointment to continue undischarged or unstayed for a period of one hundred fifty (150) days. In the event the City shall claim any Event of Default shall have occurred hereunder, the City's Default Notice shall state with specificity the provisions of this Agreement under which the Default is claimed, the nature and character of such Default, the date by which such Default must be cured pursuant to this Agreement, if applicable, and, if elected by the City, that the failure of Owner to cure such Default by the date set forth in such notice will result in the City having the right to terminate this Agreement. 25. Enforcement of Performance; Damages and Termination. If an Event of Default occurs hereunder, the City may elect any one or more of the following remedies: (a) Enforce strict performance by Owner; (b) Terminate this Agreement; or (c) Pursue any other remedy available to the City at law or in equity. The City's election of a remedy hereunder with respect to any one or more Events of Default shall not limit or otherwise affect the City's right to elect any of the remedies available to it hereunder with respect to any other Event of Default. In the event the City elects to terminate this Agreement after an Event of Default and such termination is stayed by order of any court having jurisdiction of any matter relating to this Agreement, or by any federal or state statute, then following the expiration of any such stay, the City shall have the right, at its election, to terminate this Agreement with five (5) days' written notice to Owner, Owner as debtor in possession or if a trustee has been appointed, to such trustee. 26. Strict Performance; Waiver. No failure by the City or Owner to insist upon strict performance of any covenant, agreement, term or condition of this Agreement or to exercise 14 285861/9/TAM?A any right or remedy available to such party by reason of the other party's default or an Event of Default hereunder shall constitute a waiver of any such default, Event of Default or of such other covenant, agreement, term or condition hereunder. 27. Notices. Any notices required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered by hand, sent by recognized overnight courier (such as Federal Express) or mailed by certified or registered mail, return receipt requested, in a postage prepaid envelope, and addressed as follows: If to the City at: City of Miami Beach, City Hall 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Manager With a copy to: City of Miami Beach, City Hall 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Attorney With copies to: Squire Patton Boggs (US) LLP One Tampa City Center 201 N. Franklin Street, Suite 2100 Tampa, Florida 33602 Attn: Stacy H. Krumin If to Owner at: 8701 Collins Development, LLC c/o Terra Group 2675 S. Bayshore Drive Miami, FL 33133 Attn: David Martin With a copy to: Jeffrey Bercow, Esq. Bercow Radell & Fernandez, P.A. 200 S. Biscayne Blvd. Suite 850 Miami, Florida 33131 Notices personally delivered or sent by overnight courier shall be deemed given on the date of delivery and notices mailed in accordance with the foregoing shall be deemed given three (3) days after deposit in the U.S. mails. The terms of this Section 27 shall survive the termination of this Agreement. 15 285861/9/TAM?A 28. Governing Laws, Construction and Litigation. This Agreement shall be governed and construed in accordance with the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. The Owner and the City agree that Miami-Dade County, Florida is the appropriate and exclusive state court venue, and that the U.S. District Court, Southern Division of Florida is the appropriate and exclusive federal court venue, in connection with any litigation between the parties with respect to this Agreement. All of the parties to this Agreement have participated fully in the negotiation and preparation hereof; and accordingly, this Agreement shall not be more strictly construed against any of the parties hereto. In construing this Agreement, captions, and section and paragraph headings shall be disregarded and the use of any gender shall include every other and all genders. All of the exhibits referenced in this Agreement are incorporated in, and made a part of, this Agreement. In the event of any litigation between the parties under this Agreement for a breach thereof, the prevailing party shall be entitled to reasonable attorney's fees and court costs at all trial and appellate levels. BY ENTERING INTO THIS AGREEMENT THE CITY AND OWNER EXPRESSLY WAIVE ANY RIGHTS EITHER MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS AGREEMENT. The terms of this Section 28 shall survive the termination of this Agreement. 29. Severability. In the event any term or provision of this Agreement be determined by appropriate judicial authority to be illegal or otherwise invalid, such provision shall be given its nearest legal meaning or construed as deleted as such authority determines, and the remainder of this Agreement shall be construed to be in full force and effect. 30. Time of Essence. Time shall be of the essence for each and every provision hereof. 31. Entire Agreement. This Agreement, together with the documents referenced herein, constitutes the entire agreement and understanding among the parties with respect to the subject matter hereof, and there are no other agreements, representations or warranties other than as set forth herein. Neither party shall be bound by any agreement, condition, warranty nor representation other than as expressly stated in this Agreement. This Agreement may not be changed, altered or modified except by an instrument in writing signed by both parties hereto, subject to the requirements for the amendment of development agreements in the Act. 32. Other Agreements. This Agreement has no effect on any other agreement, the City's development orders, or declaration of restrictions otherwise encumbering the Property. Any and all agreements currently in the public records remain valid. The parties incorporate by reference each and every requirement set forth in the Act. 33. Binding Effect. The obligations imposed pursuant to this Agreement upon the Owner and upon the Property shall run with and bind the Property as covenants running with the Property, and this Agreement shall be binding upon and enforceable by and against the parties hereto, their personal representatives, heirs, successors, grantees and assigns. 16 i 285861/9/TA M PA 34. Transfer and Assignment. The Owner shall not be entitled to assign or transfer its rights under this Agreement without the prior written consent of the City, in the City's sole and absolute discretion, except that the City will recognize a lender who has acquired the Property through a foreclosure sale or deed-in-lieu of foreclosure. Any such transferee (including through foreclosure or deed-in-lieu thereof) shall assume all remaining obligations of the Owner under this Agreement including, without limitation: (a) The Owner's obligation to pay the Voluntary Contribution to the City; (b) The Owner's obligation to grant and improve the 87th Terrace Easement area; and (c) The Owner's obligation to improve the 87th Street right-of-way; provided, however, at its sole discretion, the City may elect not to proceed with the Maintenance Agreement for the 87th Street right-of-way if performance under the Maintenance Agreement has not yet commenced; however, if performance under the Maintenance Agreement has commenced then the City may only terminate the Maintenance Agreement in accordance with its terms. Notwithstanding the foregoing, the Owner shall be permitted to assign this Agreement without the consent of the City after the earlier to occur of(i) issuance of the final CO for the Project; or (ii) payment of the full $10,500,000 Voluntary Contribution to the City. 35. Force Maleure and Third Party Challenges. Except as to the Owner's obligation to make the Voluntary Contribution payments in accordance with Section 6, above, time periods will be tolled due to force majeure (strikes, lockouts, acts of God, and other causes beyond the control of either party), and delays in obtaining permits from other governmental agencies. Notwithstanding the preceding, in the event that a third party (unrelated or unaffiliated with the City or the Owner) institutes a legal proceeding in a court of competent jurisdiction (the "Law Suit") challenging the validity of the Vacation Resolution or this Agreement then, if the Law Suit remains pending for more than eighteen (18) months after filing, the City may request that the Owner pay the remainder of the Voluntary Contribution then due, with sixty (60) days' notice to Owner. In such event, Owner shall pay the remainder of the Voluntary Contribution, and the actual vacation of the 87th Terrace Property shall become effective. Additionally, the Owner shall defend, any Law Suit at its sole cost and using legal counsel reasonably acceptable to the City. Owner shall further indemnify and hold the City harmless from and against all claims, injury, damage, loss and liability, cost and expense (including attorneys' fees, costs and expenses) of any and every kind arising out of or relating to any Law Suit. This Section 35 shall survive the termination or expiration of this Agreement. 36. Indemnification of City. In addition to Owner's obligations set forth in Section 35 (including Owner's obligation to indemnify the City pursuant to that Section), Owner shall defend, indemnify and hold harmless the City, its agents, servants and employees, from and against any loss, cost, expense, claim, demand or cause of action of whatever kind or nature 17 285861/9/TAMPA arising out of or related to the conduct, act or omission of Owner and/or its officers, directors, officials, employees, contractors and agents, related to (i) this Agreement, and/or (ii) the Project. The Owner shall directly pay all costs and expenses related to any expense or cost charged, or legal defense required by the City, using legal counsel reasonably acceptable to the City, pursuant to the foregoing. The City shall reasonably cooperate and collaborate (but at no expense to the City) with the Owner in connection with any legal proceeding in which the Owner is defending the City. This Section 36 shall survive termination or expiration of this Agreement. 37. Corporate Obligations. It is expressly understood that this Agreement and the obligations issued hereunder are solely corporate obligations, and that no personal liability will attach to, or is or shall be incurred by, the incorporators, stockholders, officers, directors, elected or appointed officials (including, without limitation, the Mayor and City Commissioner of the City) or employees, as such of Owner, any of any successor corporation or any of them, under or by reason of the obligations, covenants or agreements contained in this Agreement or implied therefrom; and that any and all such personal liability, either at common law or in equity or by constitution or statute, of, and any of all such rights and claims against, every such incorporator, stockholder, officer, director, elected or appointed official (including, without limitation, the Mayor and City Commissioner of the City) or employee, as such, or under or by reason of the obligations, covenants or agreements contained in this Agreement or implied therefrom are expressly waived and released as a condition of, and as consideration for, the execution of this Agreement. 38. No Conflict of Interest. Owner represents and warrants that no member, official or employee of the City has any direct or indirect financial interest in this Development Agreement nor has participated in any decision relating to this Development Agreement that is prohibited by law. Owner represents and warrants that no officer, agent, employee, or representative of the City has received any payment or other consideration for the making of this Agreement, directly or indirectly, from Owner. 39. Police Power. (a) The parties hereto recognize and agree that certain provisions of this Agreement require the City and its boards, departments or agencies, acting in their governmental capacity, to consider governmental actions, as set forth in this Agreement. All such considerations and actions shall be undertaken in accordance with established requirements of state statutes and municipal ordinances, in the exercise of the City's jurisdiction under the police power. Nothing contained in this Agreement shall entitle the Owner to compel the City to take any such actions, save and except the consents, if applicable, to the filing of such applications for Development Permits or Development Orders, as more fully set forth herein, and to timely process such applications. (b) The parties further recognize and agree that these proceedings shall be conducted openly, fully, freely and fairly in full accordance with law and with both procedural i 18 285861/9/TAM PA and substantive due process to be accorded the applicant and any member of the public. Nothing in this Agreement shall be construed to prohibit the City from duly acting under its police power to approve, approve with conditions, or reject any public hearing application dealing with the Property. 40. Conflict. In the event of an inconsistency or conflict between the terms of this Agreement and the Vacation Resolution, the terms of this Agreement shall control. i I' 19 285861/9/TAMPA EXECUTED as of the date first above written in several counterparts, each of which shall be deemed an original, but all constituting only one agreement. Signed, sealed and delivered CITY OF MIAMI BEACH, in the presence of: a Florida municipal corporation Print Name: By: Print Name: Name: i Attest: City Clerk STATE OF FLORIDA ) )SS COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of 2014, by , as Mayor of the City of Miami Beach, a municipal corporation, on behalf of the Corporation. He is personally known to me or has produced as identification and who did (did not)take-an oath. NOTARY PUBLIC Typed or Printed Name of Notary My Commission expires: Serial No., if any: APPRO LANGU�E FORM & FOR EXECUTION 20 City Attorney Date 285861/9/TAMPA 8701 COLLINS DEVELOPMENT LLC, a Delaware limited liability company By: David Martin, Managing Member Print Name: Print Name: STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of 2014 by David Martin, as managing member of 8701 Collins Development, LLC, a Delaware limited liability company, on behalf of the company. He is personally known to me or has produced as identification and who did/did not take an oath. NOTARY PUBLIC Typed or printed Name of Notary My Commission expires: Serial No., if any 21 285861/9/TAMPA I EXHIBIT A LEGAL DESCRIPTION OF PROPERTY The land referred to herein below is situated in the County of Miami—Dade, State of Florida, and is described as follows: All of Block 1; all of Block 14; and that portion of what was known as Airoso Way lying and including between the West line of said Block 1, and the East line of said Block 10; all of ALTOS DEL MAR NO. 2, according to the Plat thereof, recorded in Plat Book 4, Page 162, of the Public Records of Miami—Dade County, Florida; together with all right, title and interest in that land lying between the Easterly boundary of Block 1, of ALTOS DEL MAR No. 2, according to the Plat thereof, as recorded in Plot Back 4, Page 162, of the Public Records of Miami—Dade County, Florida, and the Erosion Control Line, according to the Plat thereof, recorded in Plat Book 105, Page 62, of the Public Records of Miami—Dade County, Florida. 22 285861/9/TAMPA EXHIBIT B [87tH STREET MAINTENANCE AGREEMENT] I 23 285861/9/TAMPA I EXHIBIT C [87tH TERRACE EASEMENT] i i 24 I 285861/9/TAM?A EXHIBIT D PRESENTLY PERMITTED DEVELOPMENT (a) Permitted Development and Uses. The Property, including 87th Terrace, is designated as RM-2 Residential multifamily, medium intensity according to the City's adopted Comprehensive Plan. The Property, including 87th Terrace, as well as the North % of 87th Street, are zoned RM-2 Residential multifamily, medium intensity by the City's Land Development Regulations. The RM-2 zoning district permits single-family detached dwellings; townhomes; apartments; apartment-hotels; and hotels. The Property may be used for the purposes permitted and regulated in these land use designations and zoning districts, as further limited by the by the City's Land Development Regulations and Comprehensive Plan. (b) Density, Building Heights, Setbacks and Intensities. The maximum density, heights, setbacks and intensities for any development on the Property shall be regulated by the City's Land Development Regulations, Comprehensive Plan and any applicable Federal, State or County laws and regulations. In the RM-2 land use designation, the maximum residential density is 100 dwelling units per acre. The intensity of hotel use is limited by such set back, height, floor area ratio, minimum room size and other provisions of the Land Development Regulations. THIS EXHIBIT DESCRIBES THE PRESENTLY PERMITTED DEVELOPMENT FOR PURPOSES OF THE ACT ONLY.THE PROJECT SHALL CONFORM TO THE DESCRIPTION PROVIDED IN SECTION 3.10 O F THIS AGREEMENT. 25 285861/9/TAMPA EXHIBIT E PUBLIC FACILITIES The proposed development will be serviced by those roadway transportation facilities currently in existence as provided by state, county, and local roadways. The proposed development will also be serviced by public transportation facilities currently in existence, as provided by Miami-Dade County, the City of Miami Beach, and such other governmental entities as may presently operate public transportation services within the City of Miami Beach. Sanitary sewer, solid waste, drainage, and potable water services for the proposed development shall be those services currently in existence and owned or operated by Miami- Dade County, the Miami-Dade County Water and Sewer Department, and the City of Miami Beach. The proposed development shall be serviced by those existing educational facilities owned or operated by the Miami-Dade Public Schools District. The proposed development shall be serviced by those existing parks and recreational facilities owned or operated by the United States Government within Miami- Dade County, by the State of Florida, by Miami-Dade County, and by the City of Miami Beach. The proposed development shall be serviced by those existing health systems and facilities operated by the United States Government within Miami-Dade County, by the State of Florida, by Miami-Dade County, and by the City of Miami Beach. The proposed development will also be serviced by any and all public facilities, as such are defined in Section 163.3221(12) of the Act, that are described in the Comprehensive Plan, specifically including but not limited to those facilities described in the Infrastructure Element and the Capital Improvements Element therein, a copy of which is available for public inspection in the offices of the City Clerk of the City of Miami Beach. 26 285861/9/TAMPA EXHIBIT F PUBLIC RESERVATIONS/DEDICATIONS 1. The vacation of 87th Terrace as described in Section 6 of this Agreement. When the vacation of the 87th Terrace Property becomes effective in accordance with the terms of Resolution No. 2014-28754, and as set forth in subsection 6 (b) (iii) of the Agreement,then the 87th Terrace Property shall be included within the Property, with the area of the Property and the 87th Terrace Property to be measured for purposes of floor area ratio calculations. 2. The 87th Terrace Easement. I 27 285861/91TAMPA EXHIBIT G REQUIRED DEVELOPMENT PERMITS AND VARIANCES The following constitutes a generalized list of local permits anticipated as necessary to be approved by the terms of this Agreement: 1. Design Review Board, Planning Board, and/or Board of adjustment approvals, pursuant to Chapter 118 of the City of Miami Beach Code. 2. Utility Permits 3. Demolition Permits 4. Building Permits . 5. Street vacations and related permits 6. Environmental Permits 7. Variances, pursuant to Chapter 118 of the City of Miami Beach Code 8. Hazardous Materials Removal Permit, if removal of hazardous materials is found necessary. v 9. Coastal Construction Control Line Permit 10. Public Works Permit, Paving and Drainage 11. Public Works Permit, Water and Sewer 12. Certificates of Use and/or Occupancy 13. All other local governmental approvals as may be applicable to the subject property from time to time pursuant to the terms of this Development Agreement. 28 285861/9/TA M PA EXHIBIT H [ESCROW AGREEMENT] 29 285861/9/TAM PA ESCROW AGREEMENT This Escrow Agreement ("Agreement") is entered into the day of , 2014 (the "Effective Date") by and between the CITY OF MIAMI BEACH, a Florida municipal corporation (the "City") and 8701 COLLINS DEVELOPMENT LLC, a Florida limited liability company("8701"). RECITALS WHEREAS, pursuant to City Resolution No. 2014-28754 (the "Vacation Resolution"), the City approved the vacation of 871h Terrace, subject to and conditioned upon certain things as set forth therein; and WHEREAS, in connection with the Vacation Resolution the City and 8701 entered into a Development Agreement pertaining to the redevelopment of the hotel and property located at 8701 Collins Avenue, Miami Beach, Florida (the "Development Agreement"), located adjacent to 87th Terrace; and WHEREAS, the Development Agreement contemplates that 8701 shall deliver into escrow a perpetual easement agreement over a portion of 87th Terrace (the "Easement Agreement"), which Easement Agreement is to be held in escrow pending the satisfaction of certain things set forth in the Development Agreement and as described herein; and NOW, THEREFORE, in consideration of the mutual promises of the parties, together with other good and valuable consideration, the receipt and sufficiency of which the parties acknowledge, the parties agree as follows: 1. Purpose of Agreement. The purpose of this Agreement is to appoint an escrow agent and specify the conditions under which the escrow agent will be instructed to release the Easement Agreement and Vacation Resolution. 2. Appointment of Escrow Agent. The parties appoint Squire Patton Boggs (US) LLP, 201 North Franklin Street, Suite 2100, Tampa, Florida 33602, as escrow agent under this Agreement ("Escrow Agent"). 3. Deposit of Easement Agreement. 8701 shall deposit the original, signed, Easement Agreement, with the Escrow Agent contemporaneously with the execution of this Agreement. If a subordination agreement is required by the Development Agreement, then such subordination agreement shall also be delivered to Escrow Agent together with the Easement Agreement and the term Easement Agreement as used herein shall be deemed to include such subordination agreement. 4. Deposit of Vacation Resolution. The City shall deposit a certified copy of the Vacation Resolution with the Escrow Agent contemporaneously with the execution of this Agreement. 5. Documentation to be Deposited with Escrow Agent. Upon the execution of this Agreement, the parties will deliver this Agreement, fully executed, to the Escrow Agent. 291 ot09/1iTAMPA The Escrow Agent will hold the Easement Agreement, the certified copy of the Vacation Resolution and this Agreement in its files until the terms and conditions of this Agreement are satisfied. The Escrow Agent's sole obligation under this Agreement shall be to hold the Easement Agreement and Vacation Resolution in safekeeping and record, or provide to the City for recording, in the public records or return the Easement Agreement and Vacation Resolution in the manner provided in this Agreement 6. Escrow Agent's Recording or Delivery of Easement Agreement. Upon such time as the following conditions are satisfied, the Escrow Agent shall be permitted to either record the Easement Agreement and Vacation Resolution in the public records of Miami-Dade County or provide the Easement Agreement to the City and Vacation Resolution to 8701, for recording. Said conditions are as follows: a. Written confirmation from the City that it has received $5,500,000 of the Voluntary Contribution (as such term is defined in the Development Agreement) then due from 8701; and b. Written confirmation from the City that there is no pending or uncured Event of Default under the Development Agreement by 8701. 7. Escrow Agent's Return of Easement Agreement and Vacation Resolution. In the event that the Development Agreement is terminated or expires prior to release of the Easement Agreement and Vacation Resolution from escrow, then Escrow Agent shall reasonably promptly return the Easement Agreement to 8701 and the Vacation Resolution to the City, or at the joint direction of the City and 8701, the Escrow Agent may destroy such documents, and upon such return or destruction this Agreement shall automatically terminate. 8. Escrow Agent Indemnification. Escrow Agent shall incur no liability whatsoever to either party in connection with its good faith performance under this Agreement. The parties jointly and severally release and waive any claims they may have against Escrow Agent which may result from its performance in good faith of its functions under this Agreement. Escrow Agent shall be liable only for loss or damage caused directly by its acts of intentional misconduct,while performing as Escrow Agent under this Agreement. The parties acknowledge that the Escrow Agent assumes no responsibility whatsoever for delays in delivering or returning the documents as specified in paragraphs 6 and 7 of this Agreement due to delays beyond the reasonable control of the Escrow Agent. If Escrow Agent is in doubt as to its duties or liabilities under the provisions of this Agreement, Escrow Agent may interplead the Easement Agreement and Vacation Resolution into the Circuit Court, whereupon after notifying all parties concerned with such action, all liability on the part of Escrow Agent shall terminate. The City (to the extent allowed by law) and 8701 agree to indemnify and hold Escrow Agent harmless from any costs or expenses, including, without limitation, reasonable attorney's fees, which may be occasioned by or arise out of claims resulting from its performance as Escrow Agent except for a default committed in bad faith. 9. Further Assurances. The parties agree to do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered all such further acts, assignments, - Page 2of6 - 291609/1[TAMPA documents, instruments, transfers and assurances as shall reasonably be requested of them in order to carry out and give effect to this Agreement. 10. Notices. All notices, demands and other communications under this Agreement shall be in writing, and delivered by overnight, prepaid delivery service via overnight carrier. In the alternative, notices may be delivered by telecopier, with confirmation of the original sent by U.S. mail. Notices shall be deemed to have been delivered on the date the party to be notified receives the notice if sent via overnight delivery services, and on the date of the facsimile if delivered via telecopier, with confirmation sent by U.S. mail. All notices shall be addressed to the parties at the following addresses, which may be changed only by written notice given to the other party: If to the City at: City of Miami Beach, City Hall 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Manager With a copy to: City of Miami Beach, City Hall 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Attorney With copies to: Squire Patton Boggs (US) LLP 201 N. Franklin Street, Suite 2100 Tampa, Florida 33602 Attn: Stacy H. Krumin, Esq. If to Owner at: 8701 Collins Development, LLC c/o Terra Group 2675 S. Bayshore Drive Miami, FL 33133 Attn: David Martin With a copy to: Jeffrey Bercow, Esq. Bercow Radell & Fernandez, P.A. 200 S. Biscayne Blvd. Suite 850 Miami, Florida 33131 Escrow Agent: Squire Patton Boggs (US) LLP 201 N. Franklin Street, Suite 2100 Tampa, Florida 33602 Attention: Stacy H. Krumin, Esq. Telephone: (813) 202-1300 Facsimile: (813) 202-1313 - Page3 of6 - 291609i UTAMPA 11. General Provisions. a. Applicable Law; Jurisdiction. This Agreement will be governed by and construed under Florida law. The parties submit to the jurisdiction of any court having competent jurisdiction in Miami-Dade County, Florida, in the event of a dispute under this Agreement. b. Authority Representation. The parties represent and warrant that the individuals who have signed this Agreement on their behalf have full power and authority to sign for and bind the respective parties to this Agreement. C. Relationship Intent of the Parties. This Agreement is a contract for the mutual provision of an escrow agent and related services. This Agreement does not make either party the agent or legal representative of the other for any purpose whatsoever and does not grant either party any authority to assume or to create any obligation on behalf of or in the name of the other. Neither party owes the other any fiduciary obligation. Moreover, the parties do not intend to establish a partnership under federal, state, or local laws, either directly or indirectly, under this Agreement. Nothing in this Agreement is intended to create or shall create a partnership, joint venture, syndicate or other similar relationship among the parties hereto. d. Interpretive Provisions. This Agreement, including any exhibits, schedules, and appendices, contains the complete agreement of the parties, and supersedes any and all prior understandings, promises, representations and agreements, oral or written, with respect to the subject matter contained herein. The headings contained herein are for convenience only and shall not be considered in construing or interpreting any provision hereof. Words in the singular shall include the plural, and vice-versa, and words in the masculine shall include the feminine or neuter or both, and vice-versa, where the context so requires for a reasonable interpretation of this Agreement. If any provision is declared void or unenforceable by any court or other authority, all other provisions hereof shall remain in full force and effect. Delay, failure, or partial exercise by a party of any right or remedy under this Agreement will not constitute a waiver of any right or remedy. This Agreement shall not be interpreted or construed in favor of or against either party and neither party shall be deemed to be the draftsman. This Agreement shall inure to and be binding upon any subsidiary, affiliate, successor, or permitted assign of or to the business of such party; provided however, that this Agreement shall not be transferable or assignable by that party without the prior written consent of the other party. In the event of a conflict of terms between this Agreement and the Purchase Agreement, the terms of this Agreement shall prevail. e. Time of Performance. Time is of the essence in the performance of this Agreement. f. Counterparts; Copies. This Agreement may be executed by the parties in several counterparts which when taken together shall be deemed to be one original, and/or may be executed in multiple copies, each of which shall be deemed an original. All true and accurate copies of this fully executed Agreement shall be valid and binding - Page 4 of 6 - 291609/1/TAMPA evidence of the Agreement of the parties, whether the document and/or any or all of the signatures are reproductions of an original by photocopy, email or facsimile transmission, or other method commonly accepted as accurate. [remainder of this page intentionally left blank] I i I Page 5 of 6 - 291609///TAMPA IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first written above. CITY OF MIAMI BEACH, a Florida municipal corporation By: Name: Attest: City Clerk 8701 COLLINS DEVELOPMENT LLC, a Delaware limited liability company By: David Martin, Managing Member The above terms and conditions are accepted by the Escrow Agent: Squire Patton Boggs (US) LLP By: Stacy H. Krumin, Principal Date: APPROVED AS TO FORM & LANGUAGE & FO EXECUTION City Attorney V Date - Page 6of6 - 291609/1/TAMPA MAINTENANCE AGREEMENT FOR 87 STREET EAST OF COLLINS AVENUE THIS MAINTENANCE AGREEMENT FOR 87 STREET EAST OF COLLINS AVENUE (this "Agreement") is made and entered into as of the day of , 20145 by and between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation of the State of Florida (the "City"), and 8701 COLLINS DEVELOPMENT, LLC, a Delaware limited liability company ("Developer"). RECITALS: A. 87`h Street east of Collins Avenue in Miami Beach, Florida is a dedicated City right-of-way and is more particularly described in the attached Exhibit "A" (the "City Property"). B. On September , 2014, the City Commission adopted Resolution No. 2014- 28754, approving, among other things, the vacation of 87`h Terrace east of Collins Avenue in exchange for certain obligations of Developer, including, but not limited to, entering into the below described Development Agreement. C. On , the City Commission adopted Resolution No. 2014- XXXXX, approving a Development Agreement between the City and Developer, which includes, among other things, the requirement that Developer design, develop, construct and maintain certain improvements to the City Property, in conjunction with the project being developed by the Developer at 8701 Collins Avenue(the"Developer's Property"). D. On the City and Developer entered into the Development Agreement, which is recorded in Official Records Book XXXXX, Page XXXX of the Public Records of Miami-Dade County, Florida(the " Development Agreement"). E. In accordance with Section XX of the Development Agreement, the City and Developer desire to enter into this Agreement to set forth the terms and conditions of Developer's construction and installation of improvements and maintenance of the City Property. NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Recitals. The above recitals are true and correct and incorporated herein by reference. 2. Installation of Improvements. Subject to necessary City approvals, the Developer shall design, fund, and install the following improvements within the City Property: (a) Lighting; (b) Resurfacing, drainage, hardscaping,paving; (c) Landscaping and related irrigation; (d) Outdoor seating and other outdoor furniture; (e) Pedestrian sidewalk, including pavers; (f) Fences and gates to control access (so long as at least a ten (10) foot access to the beach always remains open); and 285976/4/TAMPA (g) City-approved street signage; including directional signage, beach access signage and similar signs (including private signage) (collectively, the "87111 Street Improvements"). The existing geometry of the City Property shall be substantially followed in the design of the improvements. No change in the location of the sidewalks, curbs and gutters shall be permitted without the consent of the City. The design of the improvements shall be in substantial accordance with the plans entitled XXXXX and attached hereto as Exhibit"B." Developer shall expend at least Seven Hundred Fifty Thousand Dollars ($750,000) for the 87" Street Improvements, which obligation shall be separate and apart from the Developer's obligation to make the Voluntary Contribution pursuant to the Development Agreement. All of the foregoing improvements shall be completed on or before the date of issuance of the certificate of occupancy for the Project, as such term is defined in the Development Agreement. During construction of the 871h Street Improvements Developer shall be permitted to restrict access to the City-and the public as is reasonably necessary for safety and in order to efficiently complete the 87th Street Improvements. 3. Maintenance and Restoration. Developer shall, at its cost, perform daily sweeping of leaves from the City Property as needed and perform pressure cleaning of the City Property as needed. The maintenance program shall be consistent with the City's Cleanliness Index and Miami Beach Grounds Maintenance Service standards. Developer shall ensure that the City Property provides a continuous level walking surface that is compatible with the concrete sidewalk located along Collins Avenue. Developer shall bear all costs of restoring the City Property following a necessary and permitted utility cut for replacement, construction or maintenance work of utilities or a major natural disaster; provided, however, that any art pieces provided by Developer shall not be required to be replaced or restored following a natural disaster. Upon notice from the City, the Developer shall have thirty (30) days to commence undertaking any necessary restoration work. This time period may be reasonably extended by the City to account for the impact of permitting delays, unanticipated delays caused by utility providers, and/or Acts of God (including, but not limited to, fire, flood, earthquake, storm, hurricane or other natural disaster). If the restoration work is not complete in the timeframe established in this paragraph, the City may, at its sole option, take action to complete the restoration work. The City's actual costs for the restoration work shall be reimbursable to the City by Developer. 4. Developer Use of City Property. Developer shall be permitted to utilize the City Property for the following purposes: (a) pedestrian and vehicular (subject to obtaining all applicable permits and approvals) access to and from the Developer's Property; (b) sidewalk cafe seating; 285976/4/TAMPA (c) City-approved special events, as long as public pedestrian access across the City Property is not adversely affected; and (d) Encroachment of balconies on the City Property. The execution of this Agreement following the necessary City Commission review shall constitute a grant of all easements necessary for the Developer's approved used of the City Property. 5. Public Use of City Property. The City shall not allow the use of the City Property, other than by members of the general public (for public purposes consistent with the public's use of the City Property as a pedestrian plaza providing access to and from the Atlantic Ocean beach and North Shore Open Space Park), without prior written notice to and coordination with Developer. In addition to use by the general public for public purposes, the aforestated restriction on the use of the City Property (or any portion thereof) shall also not apply to public or third party uses in conjunction with the following: (a) any City issued and/or approved film and print permit or artist vendor and/or street performer permit; (b) any City and/or City sponsored special event; or (c) any exercise of constitutionally protected First Amendment rights of free speech and/or assembly. The City or third parties who use the City Property for such public or third party uses shall be responsible for paying for all costs and expenses in connection with such use of the City Property. 6. Hours of Access. The City Property shall generally be open to the public and/or guests or invitees of the Developer from sunrise to sunset daily. Access to the City Property during a City-approved special event shall be governed by the conditions of the permit. 7. Cooperation. Should any claims, demands, suits or other legal proceedings be made or instituted by any person against the City or Developer which arise out of the matters relating to this Agreement, Developer or the City shall provide the other party all pertinent information and reasonable assistance, in the defense or other disposition thereof. 8. Recording and Term. This Agreement shall be recorded in the Public Records of Miami-Dade County, Florida, at the cost of the Developer. The obligations associated with the installation of improvements in Paragraph 2 shall terminate upon the City's acceptance of the improvements through the opening of the pedestrian access to the public. The easement, security, and maintenance obligations in Paragraphs 3, 4, 5, and 6 shall remain in full force and effect and shall be binding upon the parties, their successors in interest and assigns for an initial period of ten (10) years from the date this instrument is recorded in the public records, and shall be automatically extended for successive periods of one (1) year, unless modified, amended, terminated or released prior to the expiration of such period or if within a one-year renewal term, the City may terminate this Agreement at any time upon at least thirty (30) days advance written notice. Provided, however, upon termination of this Agreement the City shall grant the Developer an easement for any encroachment of balconies as described in Paragraph 4(d) above. 285976/4/TAM PA 9. Default. (a) If Developer breaches its obligations as specified herein (and same are not waived in writing by the City), then the City shall give Developer written notice specifying the nature of the default and Developer shall have thirty (30) days after receipt of such notice within which to cure the specified default; provided, however, if the nature of such default is such that the same cannot reasonably be cured within such thirty (30) day period, Developer shall not be deemed to be in default if Developer shall, within such period, commence such cure and thereafter diligently prosecute the same to completion; provided further, however, that the maximum cure period for any default hereunder shall not exceed ninety (90) days from the date of the initial written notice of default from the City to Developer. If the default is not cured within the applicable cure period, or if Developer becomes the subject of any bankruptcy or insolvency proceeding, then the City may, on written notice to Developer, terminate this Agreement. (b) If the City breaches its obligations as specified herein (and same are not waived in writing by Developer), then Developer shall give the City written notice specifying the nature of the default and the City shall have ten (10) days after receipt of such notice, in the case of a monetary default, or thirty (30) days after receipt of such notice, in the case of a non- monetary default, within which to cure the specified default; provided, however, if the nature of such default is such that the same cannot reasonably be cured within such thirty(30) day period, the City shall not be deemed to be in default if the City shall, within such period, commence such cure and thereafter diligently prosecute the same to completion; provided further, however, that the maximum cure period for any default hereunder shall not exceed ninety (90) days from the date of the initial written notice of default from Developer to the City. If the default is not cured within the applicable cure period, then Developer may, on written notice to the City, terminate this Agreement. 10. Representations and Warranties by the City. The City represents and warrants to Developer that (a) the City has all necessary power to execute and deliver this Agreement and perform all its obligations hereunder, (b) this Agreement has been duly authorized by all requisite action on the part of the City and is a valid and legally binding obligation of the City enforceable in accordance with its terms, and (c) neither the execution and delivery of this Agreement by the City nor the performance of its obligations hereunder will result in the violation of any law, rules or regulations or any other agreement to which the City is a party or is otherwise bound. 11. Representations and Warranties by Developer. Developer represents and warrants to the City that (a).Developer is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Florida, is authorized to transact business under the laws of the State of Florida and has all necessary power to execute and deliver this Agreement and perform all its obligations hereunder, (b) this Agreement has been duly authorized by all requisite action on the part of Developer and is a valid and legally binding obligation of Developer enforceable in accordance with the terms, and (c) neither the execution and delivery of this Agreement by Developer nor the performance of its obligations hereunder will result in the violation of any provision of its articles of incorporation or any other organizational or governing document as amended to date, or will conflict with (i) any law or i 285976/4/TAMPA any order or decree of any court or governmental instrumentality having jurisdiction or (ii) any other agreement to which Developer is a party or is otherwise bound. 12. Assignment. This Agreement and all rights hereunder, shall not be assignable by either Developer or the City without prior written consent of the other, except that Developer shall be permitted to assign this Agreement to an entity controlling, controlled by or under common control with Developer, a successor in interest to the Developer's Property, or a homeowners' or condominium association created to maintain common areas on the Developer's Property. 13. Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns. 14. Notice. All notices, demands, requests, consents and approvals which may, or are required to, be given by any party to any other party thereunder shall be in writing and either (a) personally delivered, (b) transmitted by fax, (c) sent by United States mail, registered or certified, postage prepaid, return receipt requested, or (d) sent by a nationally recognized overnight delivery service, freight prepaid, return receipt requested, and addressed as follows, and shall be deemed given upon receipt if delivered personally, upon the sending machine printing a confirmation of transmission, if transmitted by fax, or upon the date of delivery (or refusal to accept delivery) on a business day (or the next succeeding business day, if not delivered on a business day), as evidenced by the return receipt if sent pursuant to subsection (c) or (d) above, at the address specified below, or to such other addresses as either party may from time to time designate in writing and delivery in a like manner. Notice given by an attorney for either party shall be deemed as effective notice given by such party. The City: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Manager Fax: (305) 673-7782 With a copy to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Attorney Fax: (305) 673-7002 and City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: Eric Carpenter, Public Works Director Fax: (305) 673-7028 and Squire Patton Boggs (US) LLP 201 North Franklin Street, Suite 2100 Tampa, Florida 33602 285976/4/TA M PA Attn: Stacy Krumin, Esq. Fax: (813) 202-1313 Developer: 8701 Collins Development, LLC c/o Terra Group 2675 S. Bayshore Drive Miami, FL 33133 Attn: David Martin With a copy to: Jeffrey Bercow, Esq. Bercow Radell & Fernandez, P.A. 200 S. Biscayne Blvd. Suite 850 Miami, Florida 33131 15. Insurance; Bonding. (a) City Election to Self-Insure. The City has elected to self-insure the City Property against physical damage and against liability for loss, damage or injury to property or persons that might occur on the City Property or to the improvements located on the City Property. (b) Developer's Insurance. Developer shall obtain and maintain a liability insurance policy in the covered amount of at least $1,000,000 per incident, $2,000,000 in the aggregate, to provide compensation for personal injuries or related claims stemming from any error, omission, negligence, or misconduct on the part of the Developer, or any of its respective officers, agents, servants, employees, contractors in the installation or maintenance of the improvements on the City Property. (c) Developer shall furnish, or shall cause its contractor to furnish, prior to commencement of any of the work contemplated by this Agreement, a payment and performance bond of the form and containing all the provisions set forth in this Section. Payment and performance bonds shall be in the form of dual obligee bonds from the Developer and/or contractor (if Developer is not self-performing) in the full amount of the cost of the 87th Street Improvements, naming the City and Developer (if applicable) as dual obliges and shall guarantee to the City the completion and performance of the 87th Street Improvements as well as full payment of all suppliers, material persons, laborers, or subcontractors employed therefor. Such bond(s) shall continue in effect for one year after completion and acceptance of the 87th Street Improvements. The surety company shall have at least the following minimum ratings in the latest revision of Best's Insurance Report Amount of Bond Ratings Category 500,001 to 1,02000 B+ Class I 1,020,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III I 285976/4/TAMPA 16. Indemnification by Developer. Developer shall indemnify, hold and save the City, and its officers, agents, contractors, and employees, whole and harmless and, at City's option, defend same (using legal counsel reasonably acceptable to City), from and against all claims, demands, actions, damages, loss, cost, liabilities, expenses, and judgments of any nature recovered from or asserted against City on account of injury or damage to person(s) or property, to the extent that any such damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, wholly or in part, by any act, error, omission, negligence, or misconduct on the part of Developer, or any of their respective officers, agents, servants, employees, contractors in the installation or maintenance of the improvements or any other use of the City Property by Developer. Developer shall and will pay all costs and expenses, including reasonable attorney's fees and court costs, incurred by or imposed upon the City by virtue of any litigation brought by third parties against the City, including appeals, alleging injury or damage to person(s) or property due to the installation or maintenance of the improvements or any other use of the City Property by Developer. 17. Partial Invalidity. In the event that any one or more of the phrases, sentences, clauses, or paragraphs contained in this Agreement shall be declared invalid by final and unappealable order, decree, or judgment of any court, this Agreement shall be construed as if such phrases, sentences, clauses, or paragraphs had not been inserted in this Agreement, it being intended by the parties that the remaining provisions of this Agreement shall remain in full force and effect notwithstanding.such invalidation. 18. No Joint Venture. It is not intended by this Agreement to, and nothing contained in this Agreement shall, create any partnership,joint venture, limited liability company or other arrangement between the City and Developer other than that of owner and independent contractor. No term or provision of this Agreement is intended to be, or shall be, for the benefit of any person not a party hereto, and no such other person shall have any right or cause of action thereunder. 19. Governing Law. This Agreement and the rights of the parties hereto shall be governed and construed in accordance with the laws of the State of Florida and all claims related to this Agreement shall be brought and prosecuted in Miami-Dade County, Florida, which shall be the exclusive venue for all such matters. Before resorting to litigation, the parties agree to use commercially reasonable, good faith efforts to resolve disputes without litigation as hereinafter provided. In the event of a dispute which the parties cannot resolve directly between themselves within ten (10) days, the parties agree to submit to non-binding mediation for up to a period of thirty (30) days after either party sends written notice to the other party demanding mediation (but no longer unless the parties mutually agree) to resolve the dispute using an independent, trained mediator agreed to by both parties. If the dispute remains unresolved after such thirty (3 0) day period or if the parties cannot agree upon a mediator within fifteen (15) days after the demand for mediation, either party may proceed to commence litigation. The parties shall equally split the cost of the mediator. 20. Enforcement. In the event of any dispute under this Agreement concerning the meaning or interpretation of any provision of this Agreement, the party not prevailing in such dispute shall pay any and all costs and expenses reasonably incurred by the other party in 285976/4/TAM PA enforcing or establishing its rights thereunder, including, without limitation, court costs and reasonable attorney's fees before and at trial and through all appellate levels. 21. Entire Agreement. This Agreement constitutes the entire agreement between the City and Developer with respect to the subject matter hereof, and supersedes and replaces all prior or contemporaneous discussions, negotiations, letters, memoranda or other communications, oral or written, with respect to the subject matter hereof. This Agreement may only be subsequently modified or amended in a writing signed by both the City and Developer. 22. Amendments. No change, amendment or modification of this Agreement shall be valid or binding upon the parties hereto unless such change, amendment, or modification shall be in writing and duly executed by all parties hereto. 23. No Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall neither be considered a waiver nor deprive that party of any right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing and signed by the party to be charged therewith. 24. Waiver of Jury Trial. The parties to this Agreement hereby agree not to elect a trial by jury of any issue triable of right by jury, and waive any right to trial by jury fully to the extent that any such right shall now or hereafter exist with regard to this Agreement or any action or proceeding in which more than one of such parties may be involved. This waiver of right to trial by jury is given knowingly and voluntarily by the parties hereto, and is intended to encompass individually each instance and each issue as to which the right to trial by jury would otherwise accrue. The parties hereto are each hereby authorized to file a copy of this paragraph in any proceeding as conclusive evidence of this waiver. 25. Corporate Obligations. It is expressly understood that this Agreement and the obligations issued hereunder are solely corporate obligations, and that no personal liability will attach to, or is or shall be incurred by, the incorporators, stockholders, officers, directors, elected or appointed officials (including, without limitation, the Mayor and City Commissioner of the City) or employees, as such of Developer, any of any successor corporation or any of them, under or by reason of the obligations, covenants or agreements contained in this Agreement or implied therefrom; and that any and all such personal liability, either at common law or in equity or by constitution or statute, of, and any of all such rights and claims against, every such incorporator, stockholder, officer, director, elected or appointed official (including, without limitation, the Mayor and City Commissioner of the City) or employee, as such, or under or by reason of the obligations, covenants or agreements contained in this Agreement or implied therefrom are expressly waived and released as a condition of, and as consideration for, the execution of this Agreement. 26. Counterparts; Facsimile. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. A facsimile signature shall be deemed for all purposes to be an original. 285976/41TAM PA IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed as of the date set forth above. Witnesses: THE OWNER 8701 COLLINS DEVELOPMENT, LLC a Florida limited liability company Sign Name: Print Name: By: David Martin, Manager Sign Name: Print Name: STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 2014 by David Martin, as manager of 8701 COLLINS DEVELOPMENT, LLC a Florida limited liability company, on behalf of the company. He is personally known to me or has produced as identification. NOTARY PUBLIC Typed or Printed Name of Notary My Commission Expires: Serial No., if any: 285976/4/TAM PA Witnesses: CITY OF MIAMI BEACH, FLORIDA, a municipal corporation Sign Naive: By: Mayor Print Name: Sign Name: Print Naive: ATTEST: City Clerk i STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 2014 by Philip Levine, as mayor of the City of Miami Beach, Florida, a Florida municipal corporation, on behalf of the City. He is personally known to me or has produced as identification. NOTARY PUBLIC Typed or Printed Name of Notary My Commission Expires: Serial No., if any: APPROVED AS TO FORM & LANGUAGE & F R EXECUTION 1 � A r i 285976/4/TAMPA City Attorney pate Prepared by and Return to: Jeffrey Be rcow, Esq. Bercow Radell & Fernandez, P.A. 200 S. Biscayne Blvd., Suite 850 Miami, FL 33131 GRANT OF PERPETUAL EASEMENT (87th TERRACE) THIS GRANT OF PERPETUAL EASEMENT (this "Easement") is made this day . of by 8701 COLLINS DEVELOPMENT, LLC, a Florida limited liability company (the "Owner") having its principal place of business at 2665 S. Bayshore Drive, Miami, Florida 33133 in favor of the CITY OF MIAMI BEACH, a Florida municipal corporation (the "City"), having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139. WHEREAS, the Owner owns that certain property situated, lying and being in Miami- Dade County, Florida, located at 8701 Collins Avenue, Miami Beach, Florida, and as more particularly described in Exhibit "A" attached hereto (the "Property"); WHEREAS, the City and the Owner entered into that certain Development Agreement dated as of 2014, recorded in Official Records Book at Page of the Public Records of Miami-Dade County (the "Development Agreement''), which constitutes a development agreement pursuant to the Florida Local Government Development Act, Section 163.3220, et. seq., Florida Statutes (the "Act") and which contemplates the renovation and/or redevelopment of the Property (the "Project WHEREAS, pursuant to the Development Agreement, the Owner has agreed to grant to the City a ten (10) foot wide perpetual easement for the purpose of providing public pedestrian access through and over a portion of the former, recently vacated, road right-of-way for 87th Terrace lying East of the Eastern right-of-way line of Collins Avenue and which is more particularly described in Exhibit "B" attached hereto (the "Easement Parcel"); WHEREAS, granting the easement is a condition of the effectiveness of the vacation of the road right-of-way for 87th Terrace and the issuance of development permits and approvals in order to develop the Project; WHEREAS, pursuant to the Development Agreement, the Owner has agreed to construct certain improvements (the "87th Terrace Improvements") to be made to 87th Terrace Property (as defined in the Development Agreement) as depicted in the 87th Street and Terrace Plans (as defined in the Development Agreement) in and on the Easement Parcel in order to provide 285975/4rrAMPA enhanced and upgraded public access to the beach and the Atlantic Ocean and the Owner has agreed to construct the 87th Terrace Improvements. NOW THEREFORE, in consideration of Ten and No/100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Owner by these presents hereby grants, and conveys to the City, its successors and assigns, a perpetual easement on, in, and over the Easement Parcel for the purpose of providing public pedestrian access through and over the Easement Parcel. The Owner and the City further agree to the following: 1. The Owner hereby grants to the City its employees, contractors, or representatives, the permanent right and license for purposes of ingress and egress to and from the Easement Parcel for the purposes of inspecting, maintaining, repairing, and replacing the public sidewalks and all related public pedestrian improvements to be constructed on the Easement Parcel. The Owner hereby also grants the City the right to use and occupy the subsurface of the Easement Parcel for any utility or drainage or other use or purpose, including, without limitation, the right to construct, install, maintain and operate therein electrical, telephone, telegraph, telecommunication, gas, gasoline, sewer, water, and drainage fixtures and the Owner grants to the City the right to grant easements to third parties to do the same. The City and third parties to whom the City grants easements over the Easement Parcel shall bear the cost for repairing any damage that they cause to the Easement Parcel while acting in such party's official capacity and for the purposes stated in this paragraph or otherwise working at the direction of the City. 2. Following Owner's completion of the 87th Terrace Improvements, the Owner shall have the sole responsibility and shall bear the total cost for the repair and maintenance of same, except for any repairs and maintenance arising from the gross negligence of the City, its employees, contractors, representatives, any third parties to whom the City has granted easements over the Easement Parcel, or any successors, while acting in such party's official capacity or otherwise working at the direction of the City. 3. The Owner shall provide the same level of maintenance on the Easement Parcel a'nd the improvements thereon as the City currently provides for its public sidewalks. The Owner shall include the Easement Parcel as part of any security plan for the Property. Such security program shall require, at minimum, a roving security guard or video monitoring of the Easement Parcel. As part of the security program, the Owner shall be responsible for enforcing the hours of access limitations; the Easement Parcel shall generally be open to the public and/or guests or invitees of the Owner from sunrise to sunset daily. 4. The Owner shall maintain insurance on the Easement Parcel at all times as is reasonably customary for such property, and in any event with the minimum amounts as follows: a. Commercial General Liability: $1,000,000 per occurrence; $2,000,000 in the 28597514TAMPA aggregate. b. Property: Full replacement value for any improvements within the Easement Area. Such insurance policies shall name the City as an additional insured and loss payee (with respect to property coverage) thereunder; shall be written by insurance companies licensed to do business in Florida and with general policyholder rating of no less than A- and a financial rating of at least VII; and shall contain a requirement that the insurer provide 30-days written notice to the City of any cancellation of coverage to the attention of Risk Manager, 1700 Convention Center Drive, Miami Beach, Florida 33139. The Owner shall provide the City with a certificate of insurance evidencing said coverages. 5. The Owner reserves unto itself, its successors and assigns, the perpetual right and privilege of: a. Right of ingress and egress to and from the Easement Parcel for construction access to the Property, and Owner shall bear the cost for repairing any damage to the Easement Parcel, resulting from such construction; b. Unrestricted vehicular and pedestrian access to, over, across and in the Easement Parcel, provided that such use does not materially interfere with the continued use of the Easement Parcel as permitted herein by the City and the public; and c. Using occupying, n r in utility service, g an cupy g, a d granting to any parties providing ty se ce, � telephone service and to other similar parties, the right to use and occupy the subsurface of the Easement Parcel for any utility or drainage or other use or purpose which does not materially interfere with the non-exclusive rights herein granted to the City, and its authorized invitees, agents, employees, guests lessees and licensees, including, without limitation, the right to construct, install, maintain and operate therein electrical, telephone, telegraph, telecommunication, gas, gasoline, sewer, water, and drainage fixtures. 6. The parties agree that in connection with each of their respective rights to install and maintain utilities in the subsurface of the Easement Parcel pursuant to this grant of easement, each party (i) shall notify the other of its intention to install, repair or otherwise maintain such utilities, (ii) shall cooperate fully with the other party and take such steps as may be necessary to insure that any such installation, maintenance or repair of said utilities will not interfere with the use or functioning of existing utilities, (iii) shall, to the extent feasible, integrate any proposed installation, maintenance or repair with any proposed work of a similar nature by the other party, and (iv) shall not unreasonably interfere with the use of the Easement Parcel by the other party as permitted under this grant of easement. 25597514i7AU PA 7. City shall not construct or permit to be constructed any structure or obstruction on or over or interfering with the construction or any other aspect of the 87th Terrace Improvements located upon the Easement Parcel. 8. Owner covenants, warrants and represents that it is the fee simple owner of the Easement Parcel and has the right, title, and capacity to grant the perpetual easement granted herein. 9. This grant of perpetual easement shall inure to the benefit of and be binding upon the heirs, legal representatives, successors and assigns of the parties hereto, as applicable. 10. Any notices required or permitted to be given under this Easement shall be in writing and shall be deemed to have been given if delivered by hand, sent by recognized overnight courier (such as Federal Express) or mailed by certified or registered mail, return receipt requested, in a postage prepaid envelope, and addressed as follows: If to the City at: City of Miami Beach, City Hall 1700 Convention Center Drive Miami Beach, Florida 3313 Attn: City Manager, City Attorney With a copy to: Squire Patton Boggs (US) LLP 201 North Franklin Street, Suite 2100 Tampa, Florida 33602 Attn: Stacy Krumin. Esq. If to Owner at: 8701 Collins Development, LLC c/o Terra Group 2675 S. Bayshore Drive Miami, FL 33133 Attn: David Martin With a copy to: Jeffrey Bercow, Esq. Bercow Radell & Fernandez, P.A. 200 S. Biscayne Blvd. Suite 850 Miami, Florida 33131 Notices personally delivered or sent by overnight courier shall be deemed given on the date of delivery and notices mailed in accordance with the foregoing shall be deemed given three (3) days after deposit in the U.S. mails. The terms of this Section shall survive the termination of this Easement. 285975i41TAiMPA 11. Construction. a. This Easement shall be construed and governed in accordance with the laws of the State of Florida. All of the parties to this Agreement have participated fully in the negotiation and preparation hereof; and, accordingly, this Easement shall not be more strictly construed against any one of the parties hereto. b. In construing this Easement, the use of any gender shall include every other and all genders, and captions and section and paragraph headings shall be disregarded. c. All of the exhibits attached to this Easement are incorporated in, and made a part of, this Agreement 12. Severability. In the event any term or provision of this Easement be determined by appropriate judicial authority to be illegal or otherwise invalid, such provision shall be given its nearest legal meaning or construed as deleted As such authority determines, and the remainder of this Easement shall be construed to be in full force and effect. 13. Litigation. In the event of any litigation between the parties under this Easement for a breach hereof, the prevailing party shall be entitled to reasonable attorney's fees and court costs at all trial and appellate levels. The terms of this Section shall survive the termination of this Easement. 14. Time of Essence. Time shall be of the essence for each and every provision hereof. 15. Entire Agreement. This Easement together with the documents referenced herein, constitute the entire agreement and understanding among the parties with respect to the subject matter hereof, and there are no other agreements, representations or warranties other than as set forth herein. This Easement may not be changed, altered or modified except by an instrument in writing signed by the party against whom enforcement of such change would be sought. 16. Force Maieure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obtain labor or materials or reasonable substitutes therefor, riot, civil commotion, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform, excluding the financial inability of such party to perform shall excuse the performance by such party for a period equal to any such period of prevention, delay or stoppage. [Signature pages to follow] 285975/41TAIVIPA IN WITNESS WHEREOF, the undersigned has caused this grant of perpetual easement to be executed by execution of this instrument as of this day of , 2014. Witnesses: THE OWNER 8701 COLLINS DEVELOPMENT, LLC a Florida limited liability company Sign Name: Print Name: By: Print name: Sign Name: Print Name: STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 2014 by David Martin, as manager of 8701 COLLINS DEVELOPMENT, LLC a Florida limited liability company, on behalf of the company. He is personally known to me or has produced as identification.. NOTARY PUBLIC Typed or Printed Name of Notary My Commission Expires: Serial No., if any: 285975/4/TAMPA ACKNOWLEDGED AND ACCEPTED this day of , 2014 by: Witnesses: CITY OF MIAMI BEACH, FLORIDA, a municipal corporation Sign Name: By: Mayor Print Name: Sign Name: Print Name: ATTEST: City Clerk STATE OF FLORIDA ) SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of , 2014 by Philip Levine, as mayor of the City of Miami Beach, Florida, a Florida municipal corporation, on behalf of the City. He is personally known to me or has produced as identification. NOTARY PUBLIC Typed or Printed Name of Notary My Commission Expires: Serial No., if any: APPROVED AS TO FORM & LANGUAGE & F EX CUTION City Attorney Date 285975/4/TAMPA CONSENT AND SUBORDINATION The undersigned lien or, owner and holder of that certain [Mortgage] recorded in Official Records Book ' at Page , of the Public Records of Miami-Dade County, hereby consents to the grant of easement rights as provided herein and subordinates the lien and effect of its security interest to this Easement. Sign Name: By: Print Name: Name: Title: Sign Name: Print Name: STATE OF ) SS: COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014 by , as of , a on behalf of the He/she is personally known to me or has produced as identification. NOTARY PUBLIC Typed or Printed Name of Notary My Commission Expires: Serial No., if any: 285575/4/TAMPA MAPI HERALD I MiamiHera&1,ca�i NC THURSDAY,NOVEMBER 6,2014 1 77ME ...................................................................................................................................................................................................................................................................................................................................................................................................................................................................... " '' T' F I'M'II I :B EACH NOT ICE OF PUBLIC LI HEARING N0710E IS HEREBY given that a Second Aeading?Public Hewing will be heard by the Mayor and City Commission of the City of Miami Seavltt, Florida, in the Ccamnakssiun Chambers,T.hir� Floor,City Hall,1700 Convention Center QNve,Kami$each,Florida, on 1P ediaesday l+ov>ember 19,201x!at 1123 a.m.,or as soon thereafter as the rnaner can be heard,to consider: A Resolution DfThe Mayor And Cam.Cerra'mission Of The Clay Of Miami Beach,To Consider Approval,Following Second l:t ding,'Public Hearing Of A Development Agreement As Authorized Under Section 1113-4 Of The City Code,And Sec ons 163.3220 .b, 163.3243, Florida Statutes, &-tween The City And 5701 Collins Developm"I,ELC("Ia l'),Which Development Agreement(1)Memorializes The Cond loons ForVacallngThe Ciity t Bight Of WayrAt 871`Terrace East Of C*Itii s Avenue j"City Parcel'];(2)GrantsTQThe City A Perpetual Pedestrian Access Easement Across A Portion Of The Vacaled City*Parcel; (3) EnSUTes The Payment Terms For 8701's Payment Of.A Voluntary Monetary Contribution,:In The Amount If$10.5 Million Dollars,To Be Used ByThe City for Public Purposes,(4)061i neates The Conditions ForThe Con5truction OfThe Project Located At 8701 Collins Avenue As A Hotel Ande Or Residerr3ial Condominium Site;Arvd I5t Subjec To And Contingent Upon 87 01's Satisfaction Of The Conditions Set Forth In The 0�vQl�ipme�nt Agrotirnc�iL lrra�rar��ris maybe dirocted to the C ty,4ttoni y�€7fficoat305, 3,7470, PROPERTY 8701 Coltins Avenue,I iaml Oextc Florida(Folio No.02-3202-00"0100,,, and 87thTerrace east of Collins.Avenue. PERMITTED USES: May irrrlude condominiums; apartawnts; apartment-hotels; hotels,condWhotel units, and accessory uses such as; facilities for conventions, banquets and o1hef functions;spa„ beachtront recreational facilities; restauraws; parking facilities.administrative office space-,and any lather hotel or resort related uscs irtduding acwst sory usas common ty associatcd with hotols, as perrnit%-d under the Citys Land Development Regujiation& The maximum residential density is 100 dwelling uniti. per acre_The maximum building intensity is a floor area ratio of 2.0,The maximum building height is 200 feel The scale of the hotel use is limited by setback, height,.floor area ratio, mininnum morn size and other provisions of the Land Devetopment 11eq utations. The height of any habitable building on the Property shall not exceed 200 feet to the top of the roni and architectural projections ivil:l comply with the terms of the City's Land Developr omt Sagulationf.. A copy of the proipas�ed€oWopmentAgreement is available for i'ns ljon and may be ,obtained by inquiring at the City Attorney%;Office 305-673 7470,17 DO Convention Center Crave,41 t'l`c ar,Miami Beach,Fiorida 33 139. INTERESTED PARTIES are invited to appear at this meetit��r or he represe ted by an agent,or to expiess their views in writing addres%ed to the City Commission,Oo the City Clerk.1700Convemion Centevoriv`e,.11 Floor.City Hall,Miami Beach,Florida=3g_This tern is.available for public inspection during normal business hours In the City Clark's Office, 1700 Conventir)n Contrie 10rive, 1"Floor,City Hall, Miami Such.,Florida 33139. This rooming,or any iter'i herein, may be oontinued, and under such citeumstafict,4, additional legal notice need not be provided- Furs ua nt to Section 286.0105,Fla,Stat.,tha City hereby advises the public that if a person docides to appeal any dechsion rnada by the City Commission with respect to any enalter considered at 11s r'neeting or its hearing,surd person must ensure that.a verbatIm eeord of the taromedings is mane,which record includes the testimony and evtd:"nce upon which the appeal is to be based.This notice does not constitute consent by the City for the introduction of admission of otherwise inadmissible or irrelevant evidence,near doss h authorize challenges or appeals not oth�rwi allowed by rani'. To reque"this material in acceasibile format,sign language interpreter%,information on access for persons ovith disabilities a idfor any accommodation to review any document Or parti ipto in any City.Sponsored proceeding,please con°ta ut us five dogs in advance at .673.74111-voim)or TTY users may also call the Florida Relay Service at 711 Rafael E.Granada,City Clerk Ckky,of Miami Beat 957 W N m N N'°L_' W m O M N °o �La cl°cmtmm° _ me ° °E.°-� -0 ca z° om m°c c m U _ m-m m r LL O O C O LL C=n C m U m e U C m N C U m m 6 m o �Q E �•-°.fir m s cri E E EV MO �r E ^ m m m E c "� v a._o m t m m cot m ^t y co >m «r Y. c°'m o f pa N O0a co ,� m L pl c o m p c_ v p o O O Cp m m C..H Q Q CH to E OLL O N m 0 m C U dm 'U O 'y-] O1X�m- aC0 m m CC ¢TU.- M C n m - `m a cG a >Q O• cwLa-?m� Q O «_� o ya mtn o• m c- 'w m >al m o '°m ca p E`m c c In >'mL g _ E o�c� CL o'm m _o n c=L m v o m r mm mmo caEc m ��c"i tjUl-op e m `0m p-Z �mm >`c o C7V E moN m 'On mmLL._ pt N C L w Cmrn� Q��-o N'0 c E o o u mcD c�m�� m t m~ °0 0«.-° �.c-'-° m u' > o� °-c m m°Nam. 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