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RESOLUTION 87-18966 RESOLUTION NO. 87-18966 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, DECLARING THE CITY OWNED PROPERTY SURPLUS WHICH IS LOCATED ON THE NORTHWEST AND SOUTHWEST CORNERS OF 36TH STREET AND COL L I NS AVENUE, MIAMI BEACH, FLORIDA, NAMELY LOTS 12 , 13 AND 14 OF BLOCK 24, AND LOTS 10, 11 AND 15 OF BLOCK 26, ED MAP, OCEANFRONT PROPERTY, MIAMI BEACH IMPROVEMENT COMPANY SUBDIVISION, PLAT BOOK 5, PAGES 7 AND 8, AND AUTHORIZING THE CITY MANAGER TO SOLICIT FOR APPRAISAL SERVICES AND TO PREPARE AND ISSUE A REQUEST FOR PROPOSALS FOR THE RESTORATION AND/OR RE-DEVELOPMENT OF SAID PROPERTY. WHEREAS, the City Commission of the City of Miami Beach has decided that restoration and/or redevelopment of the property located at 36th Street and Collins Avenue would be conducive to encouraging the public purpose of further development within the Collins Avenue Corridor ; and WHEREAS, the City has no plans now or in the future to develop said property for its own use ; and WHEREAS, the City is desirous of soliciting for appraisal services to determine the fair market value of the property ; and WHEREAS, the City is desirous of preparing and issuing a request for proposals for the use of said property ; NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY CONMI S S I ON OF THE CITY OF MIAMI BEACH, FLORIDA, that the City owned property located on the northwest and southwest corners of 36th Street and Collins Avenue, Miami Beach , Florida, namely Lots 12 , 13 and 14 of Block 24 , and Lots 10 , 11 and 15 of Block 26 , Amended Map, Oceanfront Property, Miami Beach Improvement Company Subdivision, according to the Plat thereof recorded in Plat Book 5 , at Pages 7 and 8 of the Public Records of Dade County, Florida, declared as surplus property, and that the City Manager be authorized to solicit for appraisal services and to issue a request for proposals for the sale and redevelopment of said property . PASSED AND ADOPTED this _ day of _a, : bed' , iv . ATTEST: I MA 'SR ,. ._Le_. w. CITY CLERK APPROVED AS TO FORM: ..A. ( IP- ,- . ".? - ----------- LEGAL DEPARTMENT DATED: ef ‘ tS7 PNB/WH H/HONI/ses If 18 eel, 1701/414 rodo vead --MTBE, FLORIDA 3 3 1 3 9 *•ONCORP ORATED -" V A CA TIONL A NIS U. S. A. " it,/ 9'RCy 26' °�= OFFICE OF THE CITY MANAGER CITY HALL ROB W.PARKINS 1700 CONVENTION CENTER DRIVE CITY MANAGER TELEPHONE: 673-7010 COMMISSIONsr MEMORANDUM NO.D 1 : _ DATE: September 2, 1987 TO: Mayor Alex Daoud and Members of the Ci• ommissi• FROM: Rob W. Parki 411, City Manager 4,4/101 • SUBJECT: OPERATION RE-ENTRY "ROPERTY - 3602 COLLINS AVENUE DECLARE SURPLUS, AUTHORIZE SOLICITATION FOR APPRAISAL SERVICES, AUTHORIZE REQUEST FOR PROPOSALS FOR RESTORATION AND/OR RE-DEVELOPMENT OF THE SITE BACKGROUND: 1. Site Description/Previous Use. The subject site contains two (2) separate parcels located on the west side of Collins Avenue at its intersection with 36th Street. The first parcel, formerly known as the Drexel School, housed the Operation Re-Entry Program at 3602 Collins Avenue. It contains .32 acres, and has 3 primary structures. It was purchased in 1975 for $206,250 with funds raised through a bond sale. The second parcel was originally part of the Shoremede Hotel property and known as the Shoremede Annex (Dayton Apartments) and is located at 3516-20 Collins Avenue. Both the hotel and annex properties were purchased in 1966 for $895,000.00. The Shoremede property was later converted into a City beachfront park while the Annex property on the southwest side of Collins Avenue has been used as an unimproved parking lot. In 1981, the Planning Board, at the request of the City Commission, considered alternative uses for the combined site. The Board recommended that a tourist and visitor information center and accessory tourist related uses be established and operated by the Visitor and Convention Authority. However, that use was not developed and from 1983 through 1984 one of the buildings on the Operation Re-Entry property was operated by the Miami Beach Jaycees of Florida, Inc. for civic and community use. Among the other uses considered for the three-building facility was as office space for the Metered Parking Division. This relocation was considered not to be cost effective in September of 1983, when the immediately visible renovations were estimated to total $174,694.00. Not considered in that estimate were necessary improvements to the plumbing and electrical systems. In addition, use of one of the buildings on the Re-Entry site was considered as a residential facility for battered women. The Building Maintenance Division estimated necessary repairs in June of 1986 to total $66,500.00, without considering any plumbing or electrical repairs. Those costs have been determined not to be cost effective in view of the substantial renovations necessary. 13 AGENDA (e#R ell 1) —1— ITEM DATE 9- 2- 9-7 2. Purchase Agreement Restrictions. Purchase of the Operation Re-Entry site was made possible through proceeds from sale of Public Improvement Bonds (Series of 1974 Community Facility Bonds dated March 1, 1974) for $206,250.00. The bond question before the public stated that proceeds would be used for a public purpose involving mental health, family and/or social services. On July 21, 1981, the City Attorney opined that the facility may be used for other public purposes involving similar services without violating the terms of the Bond agreements. More recently, the City Attorney issued an opinion that the property may be sold, provided that proceeds from the sale are first used to reduce the bond debt incurred for its purchase. (Copy of City Attorney's opinion Number 87-12, dated May 11, 1987 attached). It appears the Annex property was purchased with parking bond funds, which are no longer outstanding. 3. Current Use. Presently, the Operation Re-Entry Building property remains vacant while the lot to the south is under the control of the Metered Parking Division. The unimproved parking lot does not have meters and is only partially paved. If the lot is used for parking purposes, it requires repairing and landscaping according to the requirements outlined in the City's Zoning Ordinance. Both properties are severly underutilized and are in a state of disrepair and lack an aestheticly pleasing appearance. 4. Surrounding Land Uses and Character of the Neighborhood. The site is centrally located within the Collins Avenue Corridor. There are hotels located to the east along the Oceanfront and apartments and condominiums to the west toward Indian Creek Waterway. The beachfront promenade, the 36th Street Beach, and Indian Creek Waterway are the prime recreation amenities in the area. The neighborhood is characterized with mid-rise buildings generally constructed in the 1930's to 1950's. The neighborhood is considered as a prime family tourist destination point and has historically catered to the needs of this market. Numerous buildings are in need of exterior renovation in order to restore the area. 5. Zoning. Adjacent zoning to the Operation Re-Entry property is RM-100, Multiple Family Medium Density District. This designation anticipates such land use as hotels and apartments, accommodating both long term residents and tourists. Municipally owned property is zoned Municipal Use (MU). When property zoned MU is sold, the property acquires the zoning of adjacent land use, or in this case, RM-100. ADMINISTRATION RECOMMENDATION: The City Manager recommends that the City Commission take the following actions, as necessary steps, to ensure the best redevelopment use of the subject property: 1. Declare parcels to be surplus property. 2. Authorize the City Manager to solicit for appraisal services to determine the fair market value of the City-owned property; and 3. Authorize the City Manager to prepare and issue a Request for Proposals (RFP) for: a. Restoration of the City-owned facilities preserving the Mediterranean architectural characteristics; or b. Demolition of the existing structures and construction of facilities compatible with surrounding land use and zoning limitations. RWP/WHH/HCM/ses #18 Attachment: 4) City Attorney's Opinion # 87-12 Dated May 11, 1987 14 -2- CITY OF MBEACH • , .. TO: Rob W. Parkins CAO- 87-12 City Manager FROM: Arnold M. Weiner04144) City Attorney DATE: May 11, 1987 RE: Sale of City Owned Properties at 36th Street & Collins Avenue for Development and/or Restoration This opinion is in response to Request for Legal Opinion No. 3-3/87 dated February 13, 1987 . Issue: Whether there are any legal impediments to the sale of the City owned properties located on the northwest corner ( 3 lots ) and the southwest corner ( 3 lots ) of 36th Street and Collins Avenue (formerly known as the Operation Re-Entry Property and the Shoremeade Annex) . Answer : No, the properties can be sold without restriction, but there are restrictions on the use of the funds from the sale of the Operation Re-Entry Property. Documents Relied Upon: Deeds conveying title to the properties in question to the City; Commission Minutes of September 9 , 1966 ; Resolutions authorizing appropriations on August 3 , 1966 and October 10, 1966; Resolution Nos. 74-14263 and 83-17350 relating to the $250 , 000 G .O. "1974 Community Facility Bonds" ; 1984 Parking Revenue Bond Documents; CMB Charter Sec. 6; F.S. Chapter 166 . Statement of Facts: The Purchasing and Property Management Department is preparing an RFP (#72-86) for sale of the City owned properties located on the northwest and southwest corners of 36th Street and 1 16 Collins Avenue . The northwest corner property (formerlythe Drexel School 's property) waspurchased P P Y� by the City i n 19?5 for $206 , 250 from 1974 Community Facility Bond funds, which bonds remain outstanding. The Drexel School 's property became the site for Operation Re-Entry and, in 1983, the property began to be Jaycees ,used by the Miami Beach Inc.In c. The buildings are now unoccupied. The property on the southwest corner was purchased by the City in 1966 as a part of the Shoremeade acquisitionuisition(which included property on the easi side of Collins Avenue for a total price of $895,062, for both east and west parcels) and was purchased from Parking Bond funds which, we are advised bythe Finance Director, are no longer h g outstanding. Mr. Harrison, the Purchasing as i ng and Property Management Director, advises that the southeast corner property is an unimproved parking lot which has been used as a parking facility for the Operation Re-Entryand City' s Metered Parking Jaycees site, and is not a part of the system. Discussion: (1) The Title None of the deeds conveying title to the City contain any restriction or reservation limiting the use to which the properties maybe put . A review of the title policy on the Drexel School site does not show any reservation or restriction in the chain of title . A review of the abstract on the Shoremeade Annex ( southwest corner ) does not not show any restriction in the chain . There is, therefore, no legal impediment in the title to the sale of the properties. ( 2) Statutory Power The City clearly has the power pursuant to Sec. 2(b) , Art. VIII of the State Constitution, the City Charter, Sec. 6 , and Florida Statutes, Chapter 166, to sell City ownedro ert . There is, therefore, no constitutional pP y or statutory impediment to the sale of the property. (3) Bond Fund Impact (a) Northwest Property (old Drexel School) This property was purchased with the proceeds of the "1974 Community Facilities Bonds. " These G .O. bonds had their purpose stated in Resolution No. 73-14175 as developing and constructing" "acquiring,an "Operation pe anon Re-Entry Building" . The purpose was later broadened in Resolution No. 83-17350 to provide for a facility "for governmental , civic, educational , scientific, cultural, and charitable organizations, includingthe City of Miami Beach, to enrich the lives of the citizens and visitors to the City of Miami Beach. �� Thereafter , thero ert P P Y 2 1`7 was used for the Miami Beach Jaycees, Inc. Although the City may lawfully sell the property, the proceeds from the sale of the bonds would, to the extent of any outstanding bond debt , have to be utilized toward the reduction of that debt. The reason for this requirement is that a municipality cannot use an indirect means to increase the general fund - that is, exceed the constitutional 10 mil cap on ad valorem taxation by using the indirect proceeds of a bond issue while the bonds are outstanding. The reduction of the bond debt can be accomplished by defeasing the bonds, or redeeming the bonds ( if they are subject to redemption) . We would recommend consulting with bond counsel before choosing the method of applying the sale proceeds to the debt. Any surplus remaining after applying the sale proceeds to the bond debt can go to the general fund. (b) Southwest Property (Old Shoremeade Annex) Since this southwest property is not a part of the City's Metered Parking system there is no impact from the 1984 Parking Revenue Bond issue. We are advised by the Finance Director that the bonds for the bond fund which were used to purchase the southwest property have been paid off. Conclusion: It is our conclusion that the City may sell both properties, but that the proceeds from the sale of the northwest property must be used to defease or redeem the outstanding bonds. Prepared by: Patrick N. Brown Assistant City Attorney PNB/mr cc: William H. Harrison, Purch. & Prop. Mgmt. Dir . Robert Nachlinger, Finance Director 3 18 ORIGINAL RESOLUTION NO. 87-18966 (Declaring the city owned property surplus which is located on the Northwest and Southwest corners of 36th Street and Collins Avenue, Miami Beach, Florida, namely Lots 12, 13 and 14 of Blk. 24, and Lots 10, 11 and 15 of Blk. 26, amended Map. Oceanfront property, Miami Beach Improve- ment Company subdivision, Plat Book 5, pages 7 and 8, and authorizing the City Manager to solicit for appraisal services and to prepare and issue a request for proposals for the restoration and/or re- development of said property)