File Ref. #129
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KENT HARRISON ROBBINS
ATTORNEY AT LAW
1224 WASHINGTON AVENUE
MIAMI BEACH, FLORIDA 33139
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C T ! I"LU\h'S OFFICE
(305) 532-0500
January 15,1999
Honorable Neisen O. Kasdin
Mayor of the City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: Bert J. Harris Private Property Protection Act Claim
or Request for Alternate Relief
Pertaining to 7600, 7620, 7626, 7644 Collins Avenue
Miami Beach, Florida 33139
Dear Mayor Kasdin:
Pursuant to the Bert J. Harris, Jr., Private Property Rights Protection Act, codified at
Section 70.001, Florida Statutes (1997), this letter is a claim for compensation, or a request
for alternate relief, from the governmental entity of which you are the head, the City of
Miami Beach. The owner of the property is Kent Harrison Robbins and the claim concerns
the above described property legally described as Lots 1,2,3,4,5,6, Block 23, Altos Del Mar
No.1, as recorded at Plat Book 31, Page 40, of the Public Records of Miami-Dade County,
Florida.
On January 21, 1998, the City of Miami Beach adopted Ordinance No. 98-3107 which
eliminated the Floor Area Ratio bonuses, thereby reducing the maximum FAR from 2.75
to 2.25. On November 4, 1998, the City of Miami Beach adopted Ordinance No. 98-3149
which reduced the Floor Area Ratio to 2.0 in RM-2 districts. On November 4, 1998, the City
of Miami Beach adopted Ordinance No. 98-3150 which reduced the height in the RM-2
district from 140 feet and 15 stories to 75 feet and 8 stories. On November 4, 1998, the
City of Miami Beach adopted Ordinance No. 98-3151 which down zoned the property and,
thereby, reduced the FAR to 1.4. I am prepared to prove in a court of law that the
aforementioned Ordinances inordinately burden the existing use of the property and/orthe
vested right to a specific use of the Property. As such, the adoption of the Ordinances
require relief under the Harris Act.
Subsection (6) (b) of the Act requires that the compensation owed for the loss in value due
to the inordinate burden placed on the Property by the Ordinances "shall be determined
fJ~
by calculating the difference in the fair market value of the real property, as it existed at the
time of the governmental action[s] at issue, . . . and the fair market value of the real
property, as it existed at the time of the governmental action[s] at issue, as inordinately
burdened."
The attached Appraisal, prepared by Hedg-Peth & Gallaher, Inc., demonstrates that this
loss in value equals $ 790,000.00 as the result of the January 1998 FAR change,
$1,180,000 as a result of the January 1998 FAR change and the November FAR change
as RM-2, and $2,130,000 as a result of the January FAR change as RM-2 and the
November FAR change resulting from the down zoning to RM-1. Therefore, I hereby
demand that the City of Miami Beach compensate me in the amount of $2,130,000
forthwith. In the alternative, I request that the City formally repeal or rescind the
Ordinances.
The filing of this letter and claim is without prejudice to, and shall not serve to waive any
cause of action that I may have based on the Florida Constitution, Statutes, or common
law, the United States Constitution or Code, or any other applicable state or federal claim
or cause of action at law or in equity, or past and pending lawsuits. I expressly reserve any
all rights to any and all of the foregoing claims and causes of actions. I reserve the right to
proceed with all pending applications and development orders without prejudice. I reserve
the right to make further Bert J. Harris claims which may arise from the elimination of the
apartment/hotel use and hotel use of the property and the reduction in height arising from
the November 4, 1998 down zoning from RM-2 to RM-1.
Very truly yours,
~bo~
ENCLOSURE
cc: Robert Parcher, City Clerk (with enclosure)
2
FROM HEDGPETH AND GALLAHER INC
PHONE NO. :
Jan. 15 1999 05:09PM P2
H.EDG~PETH & GALLAHER, INC.
Ill,;AL !;STATE APPRAISERS ANI) CONSULTANTS
Li,~l\lied Real (;stSle Bmhrs
January 15, 1999
Kent Harrison Robbins, Esquire
1224 Washington Avenue
Miami Beach, Florida 33139
Re: Bert J. Harris. Jr. Private Property Rights Protection Act Appraisal
Collins Avenue at 76th Street
Miami Beach, Florida
Dear Mr. Robbins:
As you requested, attached is our appraisal report No. 98074, which sets forth the
results of an investigation and analysis made in order to estimate the difference in
the fair market value of the subject site prior to and after the enactment of the City
of Miami Beach Zoning Ordinance 98-3107, which was enacted January 21, 1998
and Ordinance 98-3149 (FAR changes) and Ordinance 98-3151 (Map changes)
which were enacted November 4, 1998. It is being furnished to you, at your
request, as market support of a claim under the Bert J. Harris Private Property
Rights Protection Act.
This document is considered a Complete Summary Appraisal Report and
includes brief descriptions of the property and the market data used to reach our
value conclusions. It is intended for use by those familiar with the property, but
would be generally understood by those not as familiar with the site or the Miami
Beach real estate market. This report is intended to comply with the reporting
requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of
Professional Appraisal Practice for a Summary Appraisal Report.
Thank you for this opportunity to have been of service. If you have any questions
about this report or if we can be of further assistance. please let us know.
7400 SW 50th Terrace. Suitt 201 · Miami. FloridlJ .HISS · Phone: (305) 663,1140. F(\x: (305) 663-1130
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:41AM P3
BASIS OF ANALYSIS
PURPOSE OF APPRAISAL
The purpose of this appraisal is to estimate the difference in the fair
market valu~ of the subject site prior to and after the enactment of the
City of Miami Beach Zoning Ordinance 98-3107, which was enacted
January 21, 1998 and Ordinance 98-3149 (FAR changes) and
Ordinance 98-3151 (Map changes) which were enacted November 4,
1998. The term fair market value, as specified in Chapter 70 F.S., is
synonymous with the appraisal industry term, market value.
"Market Value" is hereby defined as:
The most probable price which a property should bring in a
competitive and open market under all conditions requisite to a fair
sale, the buyer and seller, each acting prudently. knowledgeably
and assuming the price is not affected by undue stimulus. Implicit
in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions
whereby:
a. buyer and seller are typically motivated;
b. both parties are well informed or well advised, and each is
acting in what he considers his own best interest;
c. a reasonable time is allowed for exposure in the open
market;
d. payment is made in terms of cash in U.S. dollars or in terms
of financial arrangements comparable thereto; and
e. the price represents the normal consideration for the
property sold unaffected by special or creative financing or
sales concessions granted by anyone associated with the
sale.
The foregoing definition of and the conclusions as to market value in this
report refer to gross nominal values rather than net present values to the
current owner and are based on market occupancy levels at the time of
the appraisal. There are no discounts for the cost of selling the property,
for the time to sell. or for carrying costs during marketing periods.
HEDG-PETH & GALLAHER, INC.
1
FROM : HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 05:09PM P3
BASIS OF ANALYSIS - continued
INTENDED USE OF REPORT -
This appraisal is being prepared to estimate the diminution in the value of
the property as a result of a change in zoning regulations, as market
support of a claim under the Bert J. Harris, Jr. Private Property Rights
Protection Act.
INTENDED USERS OF THE REPORT -
This appraisal Is intended to be used by the property owner, the City of
Miami Beach officials and staff and, if necessary, the courts for resolution
of an issue related to property value.
DATES OF APPRAISAL -
January 21,1998 and November 4, 1998
INTEREST APPRAISED -
Fee simple title
SCOPE OF ANALYSIS -
In order to estimate the change in value due to the changes in the zoning
code, we inspected the subject site. reviewed the zoning code (both
before and after the January and November 1998 changes), assembled a
body of sales data to indicate current values of property in the market and
applied that data to the subject
PROPERTY DESCRIPTION
LEGAL DESCRIPTION -
Lots 1, 2, 3, 4, 5 and 6, block 23, ALTOS DEL MAR NO.1, according to
the plat thereof as recorded In Plat Book 31 at page 40 of the Public
Records of Miami Dade County, Florida.
HEDG-PETH & GALLAHER. INC.
2
FROM : HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:42AM PS
PROPERTY DESCRIPTION - continued
LOCATION -
The property is located along the west side of Collins Avenue, between
761t1 and 7-pt Streets, Miami Beach, Florida.
MARKET AREA -
The property is located in an area generally referred to as North Beach,
the extreme north end of the City of Miami Beach. While the South Beach
area enjoyed the first redevelopment efforts on the part of local
developers, North Beach has benefited by the heightened interest in all of
Miami Beach and redevelopment has now begun to occur in this market
area as well.
An extensive description of the market area has not been included in this
report. The intended users of this document are familiar with the market
area and the Miami Beach real estate market in general and extensive
demographic and regional economic data would not add to the clarity of
this report.
ACCESSIBILITY -
The property is easily accessible, fronting directly on Collins Avenue,
between 76th and 77'4l Streets. This location is about 3% miles north of 41 SI
Street, the Miami Beach terminus of the Julia Tuttle Causeway (1-195) to
the mainland.
STREET IMPROVEMENTS-
Collins 76th 77th Dedicated
Avenue Street Street Allevway
Dedicated width 60' 50' 50' 20' +1-
Paving Asphalt Asphalt" Asphalt Asphalt
Traffic direction 1 way north e/w elw nls
Lanes 3 + parking 2 2 1
Left turn lanes No No No
Median None None None
Sidewalks Yes Yes Yes
Curbs Yes Yes Yes
Gutters Yes Yes Yes
Street lights Yes Yes Yes
HEOG.PETH & GALLAHER, INC.
3
FROM : HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:43AM P6
PROPERTY DESCRIPTION. continued
PRESENT USE -
As of the date of appraisal, the property was vacant.
UTILITIES -
The following public utilities were available at the subject site at the time of
our inspection:
Electricity -
Telephones -
Water -
Sewer -
Florida Power and Light
Bell South
City of Miami Beach
City of Miami Beach
SHAPE AND SIZE OF LAND -
The subject is rectangular in shape with the following dimensions,
according to the available plats.
North boundary - frontage on 77tr1 Street -
South boundary - frontage on 76tr1 Street -
Easterly boundary - frontage on Collins Ave.-
West boundary - frontage on the alleyway -
175 feet
175 feet
300 feet
300 feet
Area - 52,500 square feet (1.205 acres)
For detail, see the sketch of the property on the following page.
HEOG-PETH & GALLAHER. INC.
4
FROM : HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:43AM P7
, '- HZ.,!:lr-J , " ,,=' -, I , ., ",C::;:7 .J
~ ST. (31-40) 78TH ST. 0
C\
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i I 7744 It} I
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= : . 7735 1137
:. 771,5
~ A- 1728 ~ +
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: .~ 7716':: 7717:
~ 7721 - 7717
:: 7715 7710: :: 1711 7709
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6
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11 /Q 7643 I 7644~ Q 7645 I
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PLAT MAP
HEDG-PETH & GALlAHER. INC.
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Ja.n. .LJ J.:.J..I.J t..J..J- -.. ..".
PROPERTY DESCRIPTION - continued
TOPOGRAPHY -
We have not been provided with a topographical survey; however, the site
appeared to be relatively level and at grade with the adjoining public
rights-of-way. We have no data on subsurface conditions, but, generally.
sub-surface piling is necessary for construction on Miami Beach.
According to the National Flood Insurance Program Community Panel
Number, Map Number 12025C0094 J, Dated March 2, 1994, the property
is in Flood Zone AE. a special flood hazard area inundated by 100 year
flood. The base flood elevation is detennlned to be 8 feet.
IMPROVEMENTS -
There are no improvements included in the valuation of the property.
ZONING -
As of the time of our analysis, the property was zoned by the City of Miami
Beach as RM-1, a multi-family, residential district. Prior to November 4,
1998. the property had been zoned RM-2, also a multi-family residential
district. As of the time of our analysis a lawsuit was pending that sought to
rezone the property back to the RM-2 classification.
Permitted uses in the RM-1 and RM-2 districts include single family
homes, town homes and apartments. The RM-2 district also permits
apartment/hotels and, as a conditional use, both districts permit assisted
living facilities.
Development regulations are summarized in the table below:
HEDG-PETH & GALLAHER, INC.
6
. .." . ...... :" ',' .........
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 05:52PM Pi
ZONING - continued
DEVELOPMENT REGULATIONS - RM.1,
RM-2 DISTRICTS
RM-1 RM.2
Minimum lot size 5,600 square feet 7.000 square feet
50 feet of frontage 50' feet of frontage
Maximum building 50 feet 15 Stories
height or 140 Feet
Base FAR 1.4 2.25
Maximum FAR (with 2.0 2.75
bonus)
Setbacks
At Grade 20 feet
Front 20 feet
Side Street 5 feet or 5% 5 feet or 5%
Rear 5 feet 5 feet
Pedestal 20 feet
Front 20 feet
Side Street 8% of lot width. each 8% of lot width,
Rear side each side
Tower 10% of Lot Depth 10% of Lot Depth
Front
20 feet + 1 foot for 20 feet + 1 foot for
every 1 foot increase every 1 foot
in building height increase in building
above 50 feet height above 50 feet
Side Street
Rear 5 feet or 5% 5 feet or 5%
15% of Lot Depth 15% 01 Lot Depth
1998 ZONING CHANGES -
The January 21, 1998 adoption of Ordinance 98-3107 eliminated the
Floor Area Ratio bonuses, thereby reducing the maximum allowable FAR
from 2.75 to 2.25.
The November 4, 1998 adoption of Ordinance 98-3149 modified the
maximum FAR in the RM-2 zone from 2.5 to 2.0 and Ordinance 98-3151
rezoned the subject site to RM-1 with a maximum FAR of 1.40.
HEDG-PETH & GAlLAHER, INC.
7
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:47AM P2
TAXES.
As of the appraisal date, the property was assessed by the Miami-Dade
County Property Appraiser's Office for the 1998 tax year as follows:
Folio number - 02-3202-004
-1110 -1120 -1130 -1140
Land area - 17,500 8,750 13,125 13,125
Building area - none none none None
Assessed value -
Land - 437,500 218,750 328,125 328,125
Improvements - + 0 + 0 + 0 + 0
Total - $437,500 $218,750 $328,125 $328,125
Millage Rate 27.081
Tax Liability - $11,848 $5,924 $8,886 $8,886
The taxes, shown above, are gross, before any early payment discount
The valuation techniques employed by the Miami-Dade County Property
Appraiser's Office, while appropriate for the mass appraisal process and
sufficiently accurate to establish an overall tax base for the county, are not
adequately focused to be indicative of the market value of a single parcel
of real estate. Therefore, the above assessed value is not considered an
indication of market value.
ENVIRONMENTAL CONSIDERATIONS -
While it is beyond the appraiser'S expertise to determine the presence or
extent of any environmental contamination within the site, it is incumbent
upon us to comment as to any visible evidence of contamination or any
apparent source of potential contamination.
We found no evidence of any toxic wastes or environmental contamination
at the property.
HEDG-PETH & GALLAHER. INC.
8
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan, 15 1999 09:47AM P3
HIGHEST AND BEST USE ~
The highest and best use of a property is that use that is found to be
legally permissible, physically possible, and financially feasible and that
results in the maximum return to the land.
A development, seeking to maximize the opportunities provided by the
zoning, would tend toward the highest density possible and I recent
developments of apartment buildings and hotels in Miami Beach have been
at or near the highest density.
Zoning, prior to the January 1998 change, permitted a maximum density of
2.75 times the land area, with a height limitation of 15 stories or 140 feet,
which would yield a gross building area as follows:
52,500 square feet of land x 2.75 =144,375 square feet of building
With the January zoning change, maximum density was limited to 2.25
times the land area, with the same height limit. Maximum building area is:
52,500 square feet of land x 2.25 =118,125 square feet of building
The November zoning change further reduced the FAR to 2.0 in the RM-2
district and changed the zoning at the subject to RM-1, with an FAR of 1.4
and a 50 footl5 story height limit.
52,500 square feet of land x 2.0 = 105,000 square feet of building
52,500 square feet of land x 1.4 = 73,500 square feet of building
Based on the density of other residential product in the Miami Beach market
area, it is reasonable to assume that a developer would design a project to
the maximum FAR permitted.
Therefore, it is our conclusion that the highest and best use of the property
was the development of an apartment and/or hotel to the maximum density
allowed by zoning,
HEDG-PETH & GALLAHER. INC.
9
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:48AM P4
VALUATION -
Of the three approaches to value - depreciated replacement cost, income
capitalization and sales comparison - a comparable sales analysis is the
most appropriate method to estimate the value of vacant land. Therefore,
an investigation was made for sales of sites suitable for apartment
development.
The results of our investigation are shown on the following two schedules -
a summary of sales of interior lots and a summary of sales of ocean and
bay-front sites. In order to observe pricing trends in the market, all of the
sales were included in our analysis.
In order to properly compare sales to a subject, the sales prices must be
reduced to a common unit of measure - in this case the price per square
foot of potential building or price per FAR square foot considers both the
land area and the potential density.
The sales are listed in chronological order, oldest to latest.
HEDG-PETH & GALLAHER, INC.
10
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PHONE NO.
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FROM : HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:49AM P7
V ALUA TION - continued
The 19 sales shown on the two schedules indicate a wide range of prices
per square foot of land area, from $44 to over $138 per square foot of land
area. However, the range is narrowed somewhat when the prices are
further reduced to price per FAR square foot. The sales are listed again
below in order of price per FAR foot, from highest to lowest.
Sale location Date of land Area FAR $/FAR
# Sale (Sq.Ft.) Sq.Ft.
4 155 Ocean Drive 2/96 61,558 2.25 $56.32
7 226 Ocean Drive 1/98 30,250 2.25 55.83
15 446 Collins Ave. 7/96 13,000 2.50 55.38
9 Ocean Parcel 4/98 12.8 acres 2.50 40.41
6 100 Ocean Drive 12/97 5,750 2.25 38.65
11 730 3rd Street 9/94 14,000 1.75 35.51
2 1455 Ocean Drive 5/94 100,188 3.00 34.93
16 243 Meridian 2/97 14,000 1.75 32.65
10 Euclidntl1 Street 1/94 28,000 1.60 32.59
14 313 Meridian 5/96 14,000 1.75 31.63
18 828 3rd St. 8/98 21,000 1.50 31.35
17 300 Euclid 2/97 14,000 1.75 30.61
12 345 Collins Ave. 4/95 6,500 2.25 27.35
19 West/131h Terr. 9/98 110,207 3.50 25.95
13 225 Jefferson 11/95 14,000 1.75 24.49
3 6551 Collins 1/96 49,867 4.00 21.77
1 1500 Ocean Dr. 1/94 105,590 3.00 19,90
5 7310 Ocean Terr. 4/96 45,000 3.00 14.81
8 20 Venetian Way 2/98 74,210 2.75 13.97
The sales show a narrower range and a noticeable trend in prices, with
most of the sales falling within a range of about $20 to $40 per FAR foot.
The sales at the extremes are affected by either extraordinary locations
(Sales 4, 9 and 15) or by extraordinary circumstances. Sale 8, the lowest
priced sale appears to be an aberration in the market. Sale 5 was between
related parties and Sale 1 occurred prior to most of the rMevelopment on
Miami Beach.
HEOG-PETH & GALlAHER, INC.
13
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:49AM PB
VALUATION - continued
The smaller inside lots are improved with smaller developments, hence
faster sell out periodS and reduced development and carrying costs. Their
small sizes offset their inferior locations.
By comparison, the subject has a non-waterfront location (similar to the
small inside lots) but it can offer ocean views to apartments above a
pedestal second floor and it has a relatively high maximum density (before
the zoning change) of 2.75, resulting in a relatively large potential
development (similar to the waterfront sites). Most of the sales fall in the
range of $27 to $38 per FAR square foot and the subject's value would be
expected to fall within this range. We have concluded in the mid- to low end
of the range primarily due to the subject's non-waterfront, North Beach
location.
Based on the market data, it is our opinion that the value of the subject
parcel would be approximately $30.00 per FAR square foot, which would
result in a total value as follows:
Prior to January zoning chanae
$30.00 per sq. ft. x 144,375 sq. ft. of potential building =
Use
$4,331,250
$4,330,000
After the Januarv zoning change. but Drior to November
$30.00 per sq. ft. x 118,125 sq. ft. of potential building ~
Use
$3,543,750
$3,540,000
After the November zoning chanae. as RM-2
$30.00 per sq. ft. x 105,000 sq. ft. of potential building =
$3,150,000
After the November zoning chance. as RM-1
$30.00 per sq. ft. x 73,500 sq. ft. of potential building =
Use
$2,205,000
$2,200,000
The change in the value of the property, caused by the January 1988
change in the maximum density allowed under the zoning code is,
therefore:
Value prior to January change -
Value after January change -
Difference -
$4,330,000
- 3.540.000
$790,000
HEOG-PETH & GALLAHER, INC.
14
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1999 09:50AM P9
VALUATION - continued
The change in the value of the property, caused by the combined January
and November changes in the maximum density allowed under the zoning
code as RM-2 is:
Value prior to January change -
Value after November change as RM-2 -
Difference -
$4,330,000
- 3.150.0QO
$1,180,000
The change in the value of the property, caused by the combined January
and November changes in the maximum density allowed under the zoning
code and the change from RM-2 to RM-1 is:
Value prior to January change as RM -2 - $4,330,000
Value after November change as RM-1 - - 2.200,000
Difference _ $2,130,000
CONCLUSION -
The changes in the value of the property, caused by the various changes in
the maximum density allowed under the zoning code are as follows:
Pre-January 1998 to pre-November 1998 -
$790,000
Pre-January 1998 to post-November as RM-1 -
$1,180,000
$2,130,000
Pre-January 1998 to post-November as RM-2 -
MARKETING/EXPOSURE TIME
In order for the subject site to have been sold at our market value
estimates, on the appraisal dates, it would likely have been exposed to
the market for a period of at least 12 months. Properties of this size and
complexity require a considerable amount of time to market and at least
a year's time would be necessary to find a qualified buyer. Similarly, if
the property were placed on the market at our estimated value at the
appraisal date, it would require at least a year to secure a sale.
HEOG-PETH & GALLAHER, INC.
15
Jan. 15 1999 09:50AM P10
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
APPRAISER'S COMMENT -
As mentioned earlier in this report. the adoption of Ordinance 98-3151
changed the zoning of the subject land from RM-2 to RM-1. That change
eliminated aparlment/hotel as an option for the development of the
property.
The foregoing report addresses the diminution in value due to the
difference in floor are ratio caused by the zoning change but does not
consider any potential diminution to the loss of the apartment/hotel use.
HEDG-PETH & GALLAHER. INC.
16
FROM HEDGPETH AND GALLAHER INC
PHONE NO. :
Jan. 15 1999 05:10PM P5
H.EDG,PETH & (JALLAHER, INC.
ReAL ~'T ATE APPRAISf;RS AND C:ON:;llI.T ANn;
l.icel\leJ Rul ~tlIte Broken
CERTIFICATE OF APPRAISAL
APPRAISAL REPORT NO. 98074
ROBERT E. GALLAHER, JR. does hereby certify that upon application by Kent Harrison Robbins,
Esquire. he has made an investigation and analysis of the property legally described on page 4 of
our Valuation Letter dated January 14, 1999, and that in his opinion:
The changes in the market value of the property caused changes in
the maximum density allowed under the zoning code are as follows:
Pre-January 1998 to pre-November 1998-
$790,000
Pre-January 1998 to post-November as RM-2 -
$1 t 180,000
Pre-January 1998 to post.November as RM.1 .
$2,130,000
The undersigned appraiser certifies that, to the best of his knowledge and belief, the statements to
be contained in the forthcoming report are true and correct: the reported analyses, opinions, and
conclusions are limited only by the reported "Assumptions and Limiting Conditions" at Appendix I,
and are his personal, unbiased professional analyses, opinions, and conclusions; his compensa-
tion is not contingent upon the reprinting of a predetermined value or direction in value that favors
the cause of the client, the amount of value estimate, or the attainment of a stipulated result. or
the occurrence of a subsequent result. The analyses, opinions and conclusions were developed
and this report has been prepared in conformity with the Uniform Standards of Professional
Appraisal Practice as well as in conformity with the requirements of the Code of Professional
Ethics and the Standards of Professional Practice of the Appraisal Institute. The use of the report
is subject to the requirements of the Appraisal Institute and the State of Florida relating to review
by its duly authorized representatives of the Institute and by the Real Estate Sub-Committee of
the Florida Real Estate Commission.
The appraiser does further certify that he has no present or prospective interest in the property
and no personal interest or bias with" respect to the parties involved and that he has made a
personal inspection of the property that is the subject of the report and that there has been no
unacknowledged significant professional assistance.
As of the date of this certificate, Robert E. Gallaher, Jr., has completed the requirements under
the continuing education program for the Appraisal Institute and the State of Florida.
,JR., MAl
Real Estate Appraiser
DATED: JANUARY 14,1999
7400 SW 50th Terrace. Suite 201 . Miami, Florida 33155 · Phone: (305) 663.1140. Fax: (.'OS) 663.1130
Jan. 15 1999 09:51AM P12
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
This is a Summary Appraisal Report which is intended to comply with the reporting
requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of
Professional Appraisal Practice for a Summary Appraisal Report. As such, tt
includes summary descriptions of the data, reasoning, and analyses that were
used in the appraisal process to develop the appraise(s opinion of value. More
complete detail conceming the data, reasoning, and analyses are retained in the
appraisers' files.
ASSUMPTIONS AND LIMITING CONDITIONS
It is assumed that the title to the subject property is good and marketable; and that
the legal description of the property is correct. that the improvements are entirely
and correctly located on the property described; and that there are no
encroachments, encumbrances, restrictions on or questions of title to this property;
but no investigation or survey has been made, unless otherwise stated.
The property is appraised free and clear of any or all liens and encumbrances
unless otherwise stated in this report.
The market value estimate assumes prudent ownership and management of the
herein appraised. property.
The information as to the description of the premiseS, restrictions, and
Improvements to the property involved in this report is as has been submitted by
the applicant of this appraisal, or has been obtained from sources believed to be
authoritatiVe. No warranty is given for its accuracy.
Unless otherwise specifically stated, the value given in this report represents the
opinion of the signers as to the market value as of the appraisal date. Market
values of real estate are affecled by economic conditions, bO\h local and national.
Therefore, market values of real estate will vary with futUre market conditions
affecting real estate.
It is assumed that there Is full compliance with all applicable federal, state, and
local environmental regulations and lawS unless o\he1w1S8 stated in this report.s
It Is assumed that all applicable zoning and use regulations and restrictions have
been complied with, unleSS a nonconformity has been stated, defined, and
considered in this appraisal report.
HeDG-PETH & GALlAHER. INC.
Jan. 15 1999 09:52AM P13
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
ASSUMPTIONS AND LIMITING CONQITIONS - continued
It Is assumed that. all required licenses, certificates of occupancy. or other
legislatIve or administrative authority from any local, state. or national
governmental, or private entity or organization have been or can be obtained or
renewed for any use on which the value estimates contained In this report are
based.
Any plot, plan or sketch in this report may show approximate dimensions and are
included to assist the reader in visualizing the property. Maps and exhibits found
in this rep?rt are provided .for ~eader reference purposes only. No guarantee as to
accuracy IS expressed or Implied unless otherwise stated in this report. No survey
has been made for the purpose of this report unless otherwise indicated.
It is assumed that the utilization of the land and improvements is within the
boundaries or property lines of the property described and that there is no
encroachment or trespass unless otherwise stated in this report.
The appraiser is not qualified to detect hazardoUS waste and/or toxic materials.
Any comment by the appraiser that might suggest the possibility of the presence of
such subStances should not be taken as confirmation of the presence 01
hazardous waste and/or toxic materials. Such detennination would require
investigation by a qualified expert in the field of environmental assessment. The
presence of substances such as asbeStos, urea-fonnaldehyde foam Insulation. or
other potentially hazardouS materials may affect the value of the properly. The
appraise(s value estimate is predicated on the assumption that there is no such
material on or In the properly that would cause a loss in value unleSs otherwise
stated In this report. No responsibility is assumed for any environmental
conditions, or for any expertise or engineering knowledge required to discover
them. The appraise(s descriptions and resulting comments are the result of the
routine observations made during the appraisal process.
Unless othelWise stated in this report, the subject properlY is appraised without a
specific compliance survey having been conducted to determine if the property is
or Is not in conformance with the requirements of the Americans with Disabilities
Act. The presence of architectural and communications barriers that are structural
in nature that would I9Slrlct access by disabled individuals may adversely affect
the property's value, marketability, or utility.
This report covers the premises herein described only. Neither the ligureS herein
nor any analySis thereof. nor any unit values derived therefrom are to be construed
as applicable to any other properlY. however similar the same may be.
HEDG-pETH & GAlLAHER. INC.
FROM HEDGPETH AND GALLAHER INC
PHONE NO.
Jan. 15 1':::l'::l'::l 10'::1; ::><::HI'I r-'.l."
ASSUMPTIONS AND LIMITING CONDITIOtiS - continued
Possession of this report, or copy thereof, does not carry with it the right of
publication.
The signers of this report do not authorize disclosure of all or any part of the
contents of this report to the public through advertising, public relations, news,
sales or other media, without the written consent and approval of the author,
particularly as to valuation conclusions, the identity of the appraisers or firm with
which they afe connected, or any reference to professional associations to which
they belong or designations which they may hold.
The market value herein is based on data available at the time of our investigation
and analysis. Should any additional infonnation be made available to us that
would affect the value estimate, we reserve the right to adjust our figures
accordingly.
The contract for the appraisal of said premises is fulfilled by the signers hereto
upon the delivery of this appraisal du.ly executed.
...-rU &. GA\.V,HEft INC.
HEOG'P~' ...
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