2016-29439 Reso RESOLUTION NO. 2016-29439
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA,° PURSUANT TO
SECTION 82-37 OF THE CITY CODE, APPROVE ON FIRST
READING, AND FURTHER SETTING A SECOND
READING/PUBLIC HEARING TO OBTAIN CITIZEN INPUT ON,
THE VACATION OF 2,000 SQUARE FEET WITHIN THE ALLEY
KNOWN AS ALTON COURT (HEREINAFTER THE "ALLEY);
SAID VACATION IN FAVOR OF THE ADJACENT PROPERTY
OWNERS, 1681 WEST VENTURES, LLC AND 1698 ALTON
ROAD VENTURES, LLC (COLLECTIVELY THE
"DEVELOPER"); WAIVING BY 5/7TH VOTE, THE
COMPETITIVE BIDDING REQUIREMENT, PURSUANT TO
SECTIONS 82-39(a) OF THE CITY CODE, FINDING THAT THE
PUBLIC INTEREST WOULD BE SERVED BY WAIVING SUCH
CONDITION; AND FURTHER CONDITIONING THE VACATION
OF THE ALLEY ON: (1) THE ISSUANCE BY THE CITY OF TWO
QUIT CLAIM DEEDS; (2) THE GRANTING OF AN ACCESS
AND USE EASEMENT BY THE DEVELOPER TO THE CITY;
AND (3) THE FINAL APPROVAL AND EXECUTION OF A
DEVELOPMENT AGREEMENT BETWEEN THE CITY AND THE
DEVELOPER; AND FURTHER REFERRING THIS ITEM TO THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE, AS
REQUIRED BY SECTION 82-37(a)(1) OF THE CITY CODE.
WHEREAS, the City holds a right-of-way dedication to a 20 foot wide public right-
of-way alley known as Alton Court(hereinafter referred to as the "Alley'), running parallel
and between Alton Road and West Avenue, between 17th Street and Lincoln Road; and
WHEREAS, 1681 West Ventures, LLC owns the property to the west of,-and
adjacent to, the City's Alley along the first 150 feet of the Alley closest to 17th Street; and
WHEREAS, 1698 Alton Road Ventures, LLC owns the property to the east of,
and adjacent to, the Alley, along the first 100 feet of the Alley closest to 17th Street; and
WHEREAS, 1681 West Ventures, LLC and 1698 Alton Road Ventures, LLC,
have the same principals, and shall be collectively referred to herein as "Developer"; and
WHEREAS, Developer is seeking to develop a mixed-use project with residential
and retail and structured parking, consistent with the CD-2 zoning regulations
(hereinafter,-the "Project"); and
WHEREAS, as part of the Project, the Developer seeks to have the City vacate
the north 100 feet of the Alley, located between Developer's parcels, for the 20 foot
width of the Alley (which limited area shall be referred to as the "City Parcel"), for a total
of 2,000 square feet, with the remainder of the Alley not being vacated; and
WHEREAS, Developer has requested that the City vacate the City Parcel in
order to incorporate the City Parcel, including, without limitation, the Floor Area Ratio
(FAR) attributable to the City Parcel, into the Project; provided, however, no habitable
structures, parking areas, or amenities shall be placed within the City Parcel, as the
vacated area shall be used solely for "bridge" purposes to link the Developer's parcels;
and
WHEREAS, the Developer has proffered a voluntary contribution, both monetary
(with the amount to be determined by the City and Developer) and in in-kind services to
the City; which voluntarily contribution will be used for a public purpose and which funds
would also reduce the City's costs, and improve the community's overall quality life; and
WHEREAS, Section 177.085, Florida Statutes, provides that, upon the
abandonment of a right-of-way, all rights to the former right-of-way revert to the owners
of the lots abutting such right-of-way; and
WHEREAS, a City may vacate roads when the vacation is in the public interest,
or when the street is no longer required for public use and convenience; and
WHEREAS, the overall Project and underlying Development Agreement would
reduce the City's costs due to the implementation of the maintenance agreement for
Alton Court; provide for a new sewer line along the vacated area which line provides
water and sewer services to Sunset Harbour; and would ensure that the City obtain a
perpetual access and use easement area along the entire length of the vacated City
Parcel for continued vehicular access and underground utility access; and
WHEREAS, the Administration, through its Public Works Department, hereby
represents that the Developers have -complied with the application requirements and
submittals in accordance with the City's Guidelines for Vacation or Abandonment of
Streets or Other Rights of Way, and pursuant to Sections 82-36 through 82-40 of the
City Code; and
WHEREAS, pursuant to City Code Section 82-37(a)(1), the proposed vacation
must also be referred to the Finance and Citywide Projects Committee; and
WHEREAS, pursuant to City Code Section 82-38, the City Commission must
also to schedule a second hearing/public hearing of the proposed vacation; and
WHEREAS, the Administration herby recommends that the competitive bidding
requirements of City Code Section 82-39(a) be waived as, by operation of law, the
adjacent property owners (i.e. the Developer) are the only entitled parties to which the
vacated right-of-way (the City Parcel) can be conveyed; and
WHEREAS, pursuant to City Code Section 82-38, the Planning Department is
required to prepare a planning analysis relating to the six (6) elements for vacating City
Property and shall produce said written report prior to final City Commission action on
the proposed vacation; and
WHEREAS, in accordance with City Code Section 82-39(b), an appraisal was
obtained by the City for the City's Parcel; and
WHEREAS, the City's appraisal values the City Parcels at $3,000,050; and
WHEREAS, the Administration recommends that the Mayor and City
Commission approve the proposed vacation on first reading; set the second
reading/public hearing; waive, by 5/7th vote, the competitive bidding requirement, and
refer the matter to the Finance and Citywide Projects Committee.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City
Commission, pursuant to Section 82-37 of the City Code, approve on First Reading, and
further setting a Second Reading/Public Hearing to obtain citizen input on, the vacation
of 2,000 square feet within the alley known as Alton Court (hereinafter the "Alley); said
vacation in favor of the adjacent property owners, 1681 West Ventures, LLC and 1698
Alton Road Ventures, LLC (collectively the "Developer"); waiving by 5/7th vote, the
competitive bidding requirement, pursuant to Sections 82-39(a) of the City Code, finding
that the public interest would be served by waiving such condition; and further
conditioning the vacation of the Alley on: (1) the issuance by the City of two quit claim
deeds; (2) the granting of an access and use easement by the Developer to the City;
and {3) the final approval and execution of a Development Agreement between the City
and the Developer; and further referring this item to the Finance and Citywide Projects
Committee, as required by Section 82-37(a)(1) of the City Code.
PASSED and ADOPTED this 8 day of -71-in , 2016.
i
PHILIP LE tN "- ' 4'YOR
ATTEST: i
/
/ /RAFAEL E. GRA ADO, Cl CLERK /-'
APPROVED AS TO
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COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Pursuant To Section 82-37 Of The City
Code,Approve On First Reading,And Further Setting A Second Reading/Public Hearing To Obtain Citizen Input On,The Vacation
Of 2,000 Square Feet Within The Alley Known As Alton Court(Hereinafter The"Alley); Said Vacation In Favor Of The Adjacent
Property Owners, 1681 West Ventures,LLC And 1698 Alton Road Ventures,LLC(Collectively The"Developer");Waiving By 5/7th
Vote,The Competitive Bidding Requirement,Pursuant To Sections 82-39(A)Of The City Code, Finding That The Public Interest
Would Be Served By Waiving Such Condition;And Further Conditioning The Vacation Of The Alley On:(1)The Issuance By The
City Of Two Quit Claim Deeds; (2)The Granting Of An Access And Use Easement By The Developer To The City;And (3)The
Final Approval And Execution Of A Development Agreement Between The City And The Developer;And Further Referring This
Item To The Finance And Citywide Projects Committee,As Required By Section 82-37(A)(1) Of The City Code.
Key Intended Outcome Supported:
Build and maintain priority infrastructure with full accountability
Item Summary/Recommendation:
The City holds a right-of-way dedication to a 20 foot wide public right-of-way alley known as Alton Court(hereinafter referred to as
the"Alley"), running parallel and between Alton Road and West Avenue, between 17th Street and Lincoln Road.
1681 West Ventures, LLC owns the property to the west of, and adjacent to,the City's Alley along the first 150 feet of the Alley
closest to 17th Street. 1698 Alton Road Ventures, LLC owns the property to the east of,and adjacent to,the Alley,along the first
100 feet of the Alley closest to 17th Street. 1681 West Ventures, LLC and 1698 Alton Road Ventures, LLC, have the same
principals, and shall be collectively referred to herein as the"Developer".
As part of the Project,the Developer seeks to have the City vacate the north 100 feet of the Alley, located between Developer's
parcels,for the 20 foot width of the Alley(which limited area shall be referred to as the"City Parcel"),for a total of 2,000 square
feet,with the remainder of the Alley not being vacated. The Developer has requested that the City vacate the City Parcel in order
to incorporate the City Parcel, including, without limitation, the Floor Area Ratio (FAR) attributable to the City Parcel, into the
Project; provided, however, no habitable structures, parking areas, or amenities shall be placed within the City Parcel, as the
vacated area shall be used solely for"bridge" purposes to link the Developer's parcels.
The Developer is seeking to develop a mixed-use project with residential and retail and structured parking,consistent with the CD-2
zoning regulations(hereinafter,the"Project").The Developer executed a Hold Harmless with the City in order to proceed to the
Planning Board and Design Review Board,in order to obtain design review approval of the mixed-use project,with retail,a parking
structure and residential units above,with a bridge over the Alley. The City Commission authorized the Developer to proceed with
the Project reviews,once the Hold Harmless was executed,with the understanding that the Developer would have no vested right
or recourse against the City should the City Commission decide not to vacate the Alley, or should negotiations regarding the
vacation of the Alley fail.
During negotiations,the Developer has proffered a voluntary contribution,both monetary(with the amount to be determined by the
City and Developer)and in in-kind services to the City;which voluntarily contribution will be used for a public purpose and which
funds would also reduce the City's costs, and improve the community's overall quality life.
THE ADMINISTRATION RECOMMENDS APPROVING THE RESOLUTION.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: 1
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Eric Carpenter, Public Works X6012
Sign-Offs:
Asst. Departme 'rector Assistant Cit anager/DPW City anager
JJF ETC / JL
T:\AGENDA\2016\June\ ublic Works\17th street alton ct-summaO'docx
M I AM I BEACH Agenda Item R7
Date b-$-(Co,
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of he City Co mission
FROM: Jimmy L. Morales, City Manager
DATE: June 8, 2016
SUBJECT: A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, PURSUANT TO SECTION 82-37 OF THE CITY CODE,
APPROVE ON FIRST READING, AND FURTHER SETTING A SECOND
READING/PUBLIC HEARING TO OBTAIN CITIZEN INPUT ON, THE VACATION OF
2,000 SQUARE FEET WITHIN THE ALLEY KNOWN AS ALTON COURT
(HEREINAFTER THE "ALLEY); SAID VACATION IN FAVOR OF THE ADJACENT
PROPERTY OWNERS, 1681 WEST VENTURES, LLC AND 1698 ALTON ROAD
VENTURES, LLC (COLLECTIVELY THE "DEVELOPER"); WAIVING BY 5/7TH
VOTE, THE COMPETITIVE BIDDING REQUIREMENT, PURSUANT TO SECTIONS
82-39(a) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE
SERVED BY WAIVING SUCH CONDITION; AND FURTHER CONDITIONING THE
VACATION OF THE ALLEY ON: (1) THE ISSUANCE BY THE CITY OF TWO QUIT
CLAIM DEEDS; (2) THE GRANTING OF AN ACCESS AND USE EASEMENT BY
THE DEVELOPER TO THE CITY; AND (3) THE FINAL APPROVAL AND
EXECUTION OF A DEVELOPMENT AGREEMENT BETWEEN THE CITY AND THE
DEVELOPER; AND FURTHER REFERRING THIS ITEM TO THE FINANCE AND
CITYWIDE PROJECTS COMMITTEE, AS REQUIRED BY SECTION 82-37(a)(1) OF
THE CITY CODE. •
BACKGROUND
The City holds a right-of-way dedication to a 20 foot wide public right-of-way alley known as
Alton Court (hereinafter referred to as the "Alley"), running parallel and between Alton Road and
West Avenue, between 17th Street and Lincoln Road.
• 1681 West Ventures, LLC owns the property to the west of, and adjacent to, the City's Alley
along the first 150 feet of the Alley closest to 17th Street. 1698 Alton Road Ventures, LLC owns
the property to the east of, and adjacent to, the Alley, along the first 100 feet of the Alley closest
to 17th Street. 1681 West Ventures, LLC and 1698 Alton Road Ventures, LLC, have the same
principals, and shall be collectively referred to herein as the "Developer".
As part of the Project, the Developer seeks to have the City vacate the north 100 feet of the
Alley, located between Developer's parcels, for the 20 foot width of the Alley (which limited area
shall be referred to as the "City Parcel"), for a total of 2,000 square feet, with the remainder of
the Alley not being vacated. The Developer has requested that the City vacate the City Parcel
in order to incorporate the City Parcel, including, without limitation, the Floor Area Ratio (FAR)
attributable to the City Parcel, into the Project; provided, however, no habitable structures,
Page 2
parking areas, or amenities shall be placed within the City Parcel, as the vacated area shall be
used solely for"bridge" purposes to link the Developer's parcels.
The Developer is seeking to develop a mixed-use project with residential and retail and
structured parking, consistent with the CD-2 zoning regulations (hereinafter, the "Project"). The
Developer executed a Hold Harmless with the City in order to proceed to the Planning Board
and Design Review Board, in order to obtain design review approval of the mixed-use project,
with retail, a parking structure and residential units above, with a bridge over the Alley. The City
Commission authorized the Developer to proceed with the Project reviews, once the Hold
Harmless was executed, with the understanding that the Developer would have no vested right
or recourse against the City should the City Commission decide not to vacate the Alley, or
should negotiations regarding the vacation of the Alley fail.
During negotiations, the Developer has proffered a voluntary contribution, both monetary (with
the amount to be determined by the City and Developer) and in in-kind services to the City;
which voluntarily contribution will be used for a public purpose and which funds would also
reduce the City's costs, and improve the community's overall quality life.
Section 177.085, Florida Statutes, provides that, upon the abandonment of a right-of-way, all
rights to the former right-of-way revert to the owners of the lots abutting such right-of-way. A
City may vacate roads when the vacation is in the public interest, or when the street is no longer
required for public use and convenience.
The overall Project and underlying Development Agreement would reduce the City's costs due
to the implementation of the maintenance agreement for Alton Court; provide for a new sewer
line along the vacated area which line provides water and sewer services to Sunset Harbour;
and would ensure that the City obtain a perpetual access and use easement area along the
entire length of the vacated City Parcel for continued vehicular access and underground utility
access.
The Administration, through its Public Works Department, have indicated that the Developers
have complied with the application requirements and submittals in accordance with the City's
Guidelines for Vacation or Abandonment of Streets or Other Rights of Way, and pursuant to
Sections 82-36 through 82-40 of the City Code.
Pursuant to City Code Section 82-37(a)(1), the proposed vacation must also be referred to the
Finance and Citywide Projects Committee. Additionally, pursuant to City Code Section 82-38,
the City Commission must also to schedule a second hearing/public hearing of the proposed
vacation. City Code Section 82-39(a) requires that prior to the sale or lease of City property,
there should be a public bidding process. However, here, the only entities that would be legally
entitled to title to the vacated alley would be the two adjacent property owners, the Developers.
The Administration herby recommends that the competitive bidding requirements of City Code
Section 82-39(a) be waived as, by operation of law, the adjacent property owners (i.e. the
Developer) are the only entitled parties to which the vacated right-of-way (the City Parcel) can
be conveyed.
Pursuant to City Code Section 82-38, the Planning Department is required to prepare a planning
analysis relating to the six (6) elements for vacating City Property and shall produce said written
report prior to final City Commission action on the proposed vacation. In accordance with City
Code Section 82-39(b), an appraisal was obtained by the City for the City's Parcel.
Page 3
An appraisal was ordered by Public Works and received on or about April 20, 2016. The
appraisal was associated with an air rights easement assuming that the Applicant "would not
have full control of the alley at the ground level, but would have full control of the alley from the
second floor up." The analysis was based on a sales comparison approach and included
consideration of values per buildable square foot. The appraised value of the investigation is in
the amount of$950,000.
After it was brought to light that the Applicant wanted the City to vacate the alley and provide the
City with the necessary easements for utilities and vehicular access, an additional appraisal was
requested. The valuation was determined by taking the value of the now combined parcels
minus the value of the two privately owned parcels to determine the market value of the
alley. The investigation notes that there are several items that several items contribute to the
high value when using the sales comparison approach:
• A contiguous tract with 320 feet of frontage along 17th Street with double corners
on Alton and West
• Development of a single building with frontage on three streets
• A transfer of the FAR from the alley to the combined parcels
• Allowing the west parcel to be increased in building height from 50 feet to 60 feet
The revised appraised value of the investigation is $3,050,000.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the proposed
vacation on first reading; set the second reading/public hearing; waive, by 5/7th vote, the
competitive bidding requirement, and refer the matter to the Finance and Citywide Projects
Committee. At the .Finance and Citywide Projects Committee, a final term sheet will be
recommended. That recommendation will be forwarded to the City Commission for its
consideration. If approved, a Development Agreement will be drafted and presented to the City
Commission.
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