RESOLUTION 89-19846 R ._..1L7'
RESOLUTION NO. 89-19846
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA EXTENDING UNTIL JANUARY
3, 1990 THE LEASE BETWEEN THE CITY OF MIAMI
BEACH AND MIAMI CHILD'S WORLD, INC. ENTERED
INTO ON SEPTEMBER 30, 1983 FOR THE PROPERTY
KNOWN AS THE OJUS PROPERTY.
WHEREAS, the City of Miami Beach (the "City") and Miami
Child' s World, Inc. ("Child' s World") entered into a Lease
Agreement on September 30, 1983 for the lease of the property known
as the Ojus Property located at 1511 N. E 207th Street, Miami,
Florida pursuant to Resolution No. 83-17483 , and Child' s World is
currently a lessee of the Ojus Property; and
WHEREAS, The City and Child' s World are negotiating a Contract
for Sale and Purchase of the Ojus Property for presentation to the
City Commission on January 3 , 1990 ; and
WHEREAS, The existing Lease on the Ojus Property expires on
December 31, 1989 ; and
WHEREAS, the parties wish to extend the Lease until
presentation of the Contract for Sale and Purchase on January 3 ,
1990 .
NOW, THEREFORE, BE IT DULY RESOLVED by the City Commission of
the City of Miami Beach, Florida that the City Commission hereby
extends until January 3 , 1990 the Lease between the City of Miami
Beach and Miami Child' s World, Inc. entered into on September 30,
1983 for the property known as the Ojus Property.
PASSED and ADOPTED this 20th day of December , 1989 .
, r
Vice Mayor
ATTEST:
FORMAPPROVED
CITY CLERK LEGA.>)) 624--
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
COMMISSION MEMORANDUM NO. n'{ I
DATE: December 20, 1989
TO: Mayor Alex Daoud . •
Members of th- ' Ity Commi: io A
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FROM: Rob W. Park •s '•�/�Ip
. 000CltManager , � 1
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SUBJECT:
RESOLUTION APPROVING IN CONCEPT THE SALE OF THE OJUS
PROPERTY TO MIAMI CHILD' S WORLD, INC.
HISTORY AND BACKGROUND
Pursuant to City Commission Resolution No. 83-17483 the City and
Miami Child' s World, Inc. entered into a lease agreement for the
use of the 143 . 75 acre Ojus property, a portion of which (46 acres)
is the site of an inactive Landfill used by the City from 1938 to
1977 . Under that agreement, the Lessee has paid minimum rent
under a scale graduating from $1, 000 per month during the first
year of the agreement to $5, 000 per month presently. The Lessee
has consistently made timely rent payments during the term of the
Lease. The planning and permitting phase of the lease has been
extended pursuant to City Commission Resolutions No. 86-18485 and
No. 88-19153 , with the current extension expiring December 31,
1989 .
In recent months the Lessee has proposed a mechanism for purchase
of the property for further development. The City selected an
appraiser to complete a current appraisal of the value of the
property, with the Lessee reimbursing the City for one half of the
cost ($5, 000) of the appraisal . That appraisal resulted in a
finding that the fair market value of the property, without
consideration of the costs of clean-up, closure, monitoring and
testing requirements for the Landfill or the values of the Urban
Land Forest or state concurrency is $8 , 745, 000 .
Concurrently a Closure and Cost Estimate Study was undertaken by
ECOS : Environmental Planning and Design Group, Inc. The resulting
estimated cost of closing the Landfill is $3 , 114 , 850 , including
permits and construction. In addition, costs associated with
ongoing testing and monitoring are anticipated but are not
considered in the closure cost referenced above.
The Land Use Committee at its meeting on December 13 , 1989 reviewed
the proposed contract for sale and purchase of the property. The
Committee recommended approval of the sale of the property pending
completion of certain revisions to the contract documents.
TERMS AND CONDITIONS
Under the proposed agreement, Miami Child' s World, Inc. will
purchase the entire Ojus property for the Total Appraisal Purchase
Price of $8 , 745, 000, with said Price discounted for the value of
the Urban Land Forest and concurrency. A deposit of $50, 000 will
be paid to the City upon execution of the Contract of Sale.
AGENDA
ITEM
DATE
SALE OF OJUS PROPERTY
December 20, 1989
Page -2-
Closing shall occur on or before June 29 , 1990, with one extension
permissible upon payment of an additional, non-refundable fee of
$15, 000. 00. At closing, the Buyer will pay the City $5, 000, 000 . 00
(applying the $50, 000 deposit toward this amount) . Mortgage notes
will also be supplied at closing totalling $3 , 114 , 850. 00: a first
mortgage on the G.U. Interim zoned property and a second mortgage
on the I .U. Zoned property.
Once paid, this amount will be held in an interest bearing Trust
Account for the purpose of financing the cost of closing the
Landfill . Activities to be completed under this closure project
include the following:
Engineering, Surveys & Testing
Clearing and Grubbing
Herbicide
Waste Recontouring & Recompaction
Fill for Recontouring
Fill for Berm
Excavation for Ditches & Retention Pond
Drainage Pipe & Structures
Synthetic Liner
Sand Subbase & Cover
Muck Topsoil
Sod and Fencing
Gas and Monitor Wells
Final Surveys, Materials Testing and Certifications
In the event the costs of closing the Landfill exceed the amount
in the Trust Account, plus accrued interest, then the Buyer shall
be responsible for all such additional costs at his own expense.
Following the purchase, the Buyer shall have of the full
responsibility for post closure care, financial responsibility and
monitoring. Ongoing activities over the projected twenty-year
period include the following:
Groundwater Monitoring
Methane Gas Monitoring
Replacement of Monitor Wells
Groundcover Maintenance & Replacement
Erosion Control & Drainage Maintenance
The post closure costs for the duration of the twenty-year period
following closure are estimated to be a minimum of $2 , 029 , 000 .
Under the agreement, the Buyer will begin Landfill closure within
twenty-four (24) months of closing and complete such closure
activities within sixty (60) months of closing.
The financial terms of the proposed agreement are summarized as
follows:
Non-refundable Deposit: $ 50,000
Cash to Close 4,950,000
Mortgages to fund Trust Account
to be used for cost of
closing Landfill 3,114,850
Total Purchase Price: $ 8, 114,850
12
SALE OF OJUS PROPERTY
December 20 , 1989
Page -3-
ADMINISTRATION
-3-
ADMINISTRATION RECOMMENDATION
The City Administration recommends that the City Commission approve
the attached Resolution approving in concept the sale of the Ojus
Property to Miami Child' s World, Inc. subject to approval of the
contract documents by the City Attorney and the City Manager and
presentation of such documents to the City Commission for approval
at a future meeting.
RWP:WHH:HM
ORIGINAL
RESOLUTION NO. 89-19846
Extending time until 1/3/90
lease between CMB and Child's
World, entered into on 9/30/83
for O j us property