2016-29488 Reso RESOLUTION NO. 2016-29488
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE AND APPROVING A TERM SHEET, ATTACHED
HERETO AS EXHIBIT 1, FOR 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"); AND AUTHORIZING THE ADMINISTRATION AND
CITY ATTORNEY TO NEGOTIATE A DEVELOPMENT AGREEMENT
BASED UPON THE APPROVED OF THE TERM SHEET.
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 spaces, or amenities shall be placed within the City Parcel, as the
vacated area shall be used solely for a pedestrian and vehicular "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, 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; Repaving of the remainder of Alton Ct.
from 17th St. to Lincoln Rd; 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 City Commission set the value of the air rights easement as
$665,000; and
WHEREAS, on June 17, 2016, the Finance and Citywide Projects Committee
issued a recommendation to the City Commission to approve the Term Sheet, attached
as Exhibit "1", to this Resolution, and for the City Administration and City Attorney to
negotiate a final Development Agreement, based upon the approved Term Sheet with
Developer; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City
Commission hereby accept the recommendation of the Finance and Citywide Projects
Committee approval a Term Sheet, attached hereto as Exhibit 1, for 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"); and further authorize the City
Administration and City Attorney to negotiate a Development Agreement based upon the
attached, approved the Term Sheet.
PASSED and ADOPTED this as day of Jy� , 2016.
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City Attorney Date
4.711
ALTON COURT AND 17TH STREET PROPOSED VACATION OF 2,000 SQUARE FEET
WITHIN THE ALLEY,ALONG THE NORTH 100 FEET OF ALTON COURT,FOR
THE ENTIRE 20 FOOT WIDTH OF THE ALLEY
Recitals.
A. 1698 Alton Road Ventures LLC and 1681 West Ventures LLC (collectively
"Developer") is owner of those certain parcels of land located at 1698 Alton Road and
1681 & 1683 West Avenue, and which combined are approximately 37,500 square feet
(the Developer's Parcels").
B. The City of Miami Beach ("City") holds a right-of-way dedication to a 20 foot wide
public right-of-way, alley, running parallel to Alton Road, between Alton Road and West
Avenue, between 17th Street and Lincoln Road.
C. Developer seeks to have the City vacate the north 100 feet of the Alton Court Alley
(Alley) located between Developer's Parcels, for the 20 foot width of the alley (City
Parcel). The remainder of the Alley would not be vacated. 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 Developer's
proposed Project (as defined below). No habitable structures, parking spaces or
amenities shall be placed in or above the City Parcel. The City Parcel shall be used
primarily for a pedestrian and or vehicular "bridge" purposes to link the Developer's
Parcels and as contemplated in the Design Review Board and Planning Board approvals.
D. Upon vacation, the City Parcel collectively with the Developer's Parcels shall be known
collectively as the "Property".
E. Developer intends to develop the Property as a mixed-use project with residential and
retail/restaurant uses and structured parking, consistent with the CD-2 zoning regulations
(hereinafter, the "Project"): as shall be further delineated in a Florida Statutes Chapter
163 development agreement, to be negotiated between the City and the Developer (the
"Development Agreement")and pursuant to applicable land use approvals.
II. Voluntary Contribution.
A. Developer has offered a voluntary public contribution (hereinafter the "Voluntary
Contribution") of $665,000.00 to the City in connection with the vacation of the City
Parcel. The Voluntary Contribution is based on the recommendation of the Finance
Committee, which Committee analyzed the appraised value of the City Parcel, as further
set forth in the Appraisal Report as appraised for the City by Waronker and Rosen, Inc.,
dated April 14, 2016, and provided a 30 percent discount, as the full bundle of rights are
not being utilized by the Developer, and as Developer is providing additional parking on
site that may be used by the public. All funds shall be allocated as shall be determined by
the City Commission, in its sole and reasonable discretion.
III. Payments and Timing. The Voluntary Contribution shall be paid by the Developer to
the City as follows:
Page 1 of 3
A. Developer will make the first payment, in the amount of $199,500.00 within ten (10)
business days following the City Commission's (i) final 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.
B. Developer will apply for a full building permit for the Project, using commercially
reasonable efforts, no later than 6/16/17.
C. Developer will pay the City the balance : (i) within ten (10) business days of the
issuance of a full building permit for the Project, and (ii) City's delivery of deed in favor
of Developer for the City Parcel for final transfer of rights.
D. The actual vacation of the City Parcel shall be only effective as of the date Developer
makes the final payment of the Voluntary Contribution. The payment shall be non-
refundable.
E. Developer shall also reimburse the City for the cost of Appraisal Report in the amount
of$7,000 prior to final reading of the Vacation Resolution.
IV. City Easement.
A. No later than ten (10) business days following the City's delivery of deed in favor of
Developer for the City Parcel for final transfer of rights, Developer shall grant to the
City a non-exclusive perpetual public access easement over the entire portion of the City
Parcel, subject to the review and approval of City staff, not to be unreasonably withheld,
in order to provide access to the public and utility access to the utilities under the vacated
land (the "City Easement"). The final approved City Easement shall be recorded by
Developer, at its sole cost and expense simultaneously with the receipt of the transfer of
the deed by the City to Developer. The City Easement shall not be unnecessarily blocked
during construction.
B. Developer shall install new water and sewer pipes, along the north 145 feet of the Alley,
to replace that portion of the existing pipes between Lincoln Road and 17th Street,
running down Alton Court. All remaining existing utilities controlled by the City and
located underground within the City Parcel will be replaced or improved at the direction
and reasonable discretion of the City's Public Works Director, or his designee.
Developer shall be solely responsible for all costs and work associated with the
improvements to the City Easement (including, without limitation, the design, permitting
and construction), which improvements shall include, but not be limited to, resurfacing,
drainage, hardscaping, sidewalks, and lighting.
C. The Developer shall be responsible for the maintenance of the City Easement area, as to
normal maintenance. Developer intends to install pavers in certain areas, and Developer
shall be responsible, in perpetuity, for the maintenance of the pavers.
D. That Developer shall repave the entirety of the Alley between 17th Street and Lincoln
Road at the direction and reasonable discretion of the City's Public Works Director, of
his designee.
Page2of3
E. There is a pole mounted transformer ("FP&L Equipment) and other existing equipment
("Other Equipment") located in the Alley that is related to the stormwater pump station
located on 17`h Street. The Developer will need to coordinate with FP&L and the City's
Public Works Department for the removal and/or relocation of the FP&L Equipment and
Other Equipment, at the direction and reasonable discretion of FPL (Florida Power &
Light) and the City's Public Works Director, or his designee. The existing overhead
utility lines (electrical, cable and telephone) and other pole mounted equipment will be
relocated, with the direction of FPL or any other applicable utility providers and the
City's Public Works Director, or his designee.
F. Developer's satisfaction of the conditions in A through D shall also be conditions
precedent to the final approval of the vacation of the City Parcel.
V. Development Agreement. The above terms and other matters will be incorporated into
the Development Agreement, which will also include, at a minimum, the following
additional terms:
A. Developer 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). Developer 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.
B. 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), any assignment or transfer greater than 50% of Developer's rights under the
Development Agreement shall require the prior written consent of City Commission,
which consent, if given at all, shall be at the Commission's sole discretion.
Notwithstanding the preceding sentence, Developer shall not be permitted to assign or
transfer greater than 50% of Developer's rights under the Development Agreement until
after the issuance of a Certificate of Occupancy ("CO"), unless waived by the City
Commission for the approved Project. Any approved transferee shall assume all
obligations of Developer under the Development Agreement including, without
limitation, (i) Developer's obligation to grant and improve the City Easement and (ii) to
improve the pipes and Alton Court right-of-way.
VI. Outside Counsel Review. Developer 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).
APPROVED AS TO
FORM & LANGUAGE
&FOR EXECUTION
City Attorney ' Dote
Page 3 of 3 fl�►
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The Recommendation Of The Finance And Citywide Projects Committee And Approving A
Term Sheet, Attached Hereto As Exhibit 1, For The Vacation Of 2,000 Square Feet Within The Alley Known As The
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");And Authorizing The Administration And City
Attorney To Negotiate A Development Agreement Based Upon The Approved Of The Approval Of The Teim Sheet.
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.
At the Finance and Citywide Projects Committee meeting of June 17, 2016, a monetary contribution of$665,000 was
approved. In addition, other aspects of the proposed project were discussed and proffered by the Developer. These
memorialized in the attached term sheet. An agreement will be negotiated with the City Attorney.
CONCLUSION
THE FCWPC HAS RECOMMENDED THE CITY COMMISSION TO ADOPT THE RESOLUTION
Advisory Board Recommendation:
n/a
Financial Information:
Source of Amount Account Approved
Funds: 1
2
3
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Eric Carpenter, Public Works X6012
Sign-Offs:
Assistant Dep rtment Assistant City City M•nager
Direct Manag-0 P •W
JJ ETC I JLM ri
T:\AGENDA\2016\July\Public Works\17th Alton Road-summary2...cx
Agenda Item R-7 E
MI AAA I BEACH Date 7-B-fr
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Members of the Finance and Citywide rojects Corn thee
FROM: Jimmy L. Morales, City Manager
DATE: July 13, 2016
SUBJECT: A RESOLUTION ACCEPTING THE ECOMMENDATION OF THE FINANCE AND
CITYWISE PROJECTS COMMITTEE AND APPROVING A TERM SHEET,
ATTACHED HERETO AS EXHIBIT 1, FOR THE VACATION OF 2,000 SQUARE
FEET WITIN THE ALLEY KNOWN AS THE ALTON COURT (HEREINAFTER THE
"ALLEY"); SAID VACATION IN FAVOR OF THE ADJACENT PROPERTY
OWNERS, 1681 WEST WENTURES, LLC AND 1698 ALTON ROAD VENTURES,
LLC (COLLECTIVELY THE "DEVELOPER"); AND AUTHORIZING THE
ADMINISTRATION AND CITY ATTORNEY TO NEGOTIATE A DEVELOPMENT
AGREEMENT BASED UPON THE APPROVED OF THE APPROVAL OF THE
TERM SHEET.
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,
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 Memo—17`"Street Alton Court,memo 2
July 13, 2016
Page 2
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.
ANALYSIS
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 new water and
sewer lines along the vacated area which lines provide water and sewer services to the area;
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.
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 City Parcel 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 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.
Section 82-38 of the City Code requires a determination as to whether or not the proposed use
involves a public purpose, or in keeping with the community's needs. As with any transfer of
public property, the City Commission must weigh in the public benefit. As with the FAENA
Project, the public benefit was the improvement of three (3) blocks of the Beachwalk. In the
case of the Betsy Hotel and the green alley, it was the creation of an enhanced pedestrian
walkway. In this case, the public benefit will be the creation of parking spaces for use by the
Commission Memo—17th Street Alton Court, memo 2
July 13, 2016
Page 3
public.
At the Finance and Citywide Projects Committee meeting of June 17, 2016, a monetary
contribution of $665,000 was approved. In addition, other aspects of the proposed project were
discussed and proffered by the Developer. These are memorialized in the attached term sheet.
An agreement will be negotiated with the City Attorney.
CONCLUSION
The Finance and Citywide Projects Committee recommends the City Commission to approve a
term sheet, attached hereto as exhibit 1, for the vacation of 2,000 square feet within the alley
known as the 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"); and authorizing the Administration and City Attorney to negotiate a
development agreement based upon the approval of the term sheet.
JLM/ETC/JJF/FAS
F:\WORK\$ALL\(1)EMPLOYEE FOLDERS\FIORELLA SARMIENTO\CITY COMMITTEES AND LTCs-ALL YEARS\FINANCE
COMMITTEE-ALL ITEMS\17th Alton Rd.memo2.doc