Resolution 2020-31185 RESOLUTION NO. 2020-31185
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, ON FIRST READING, AN
AMENDMENT NO. 2 TO THE LEASE BETWEEN THE CITY (LESSOR) AND
EHDOC COUNCIL TOWERS LIMITED PARTNERSHIP (LESSEE), IN
CONNECTION WITH THE CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE
ELDERLY HOUSING AT COUNCIL TOWERS NORTH, LOCATED AT 1040
COLLINS AVENUE, MIAMI BEACH, FLORIDA, TO AMEND THE CURRENT
LEASE TO INCORPORATE CERTAIN HUD REQUIREMENTS AND
MODIFICATIONS NECESSARY FOR HUD TO INSURE THE MORTGAGE
LOAN THAT WILL REFINANCE THE PROPERTY AND PAY FOR THE AGREED
UPON IMPROVEMENTS, INCLUDING EXTENDING THE LEASE TERM TO
JULY 8, 2076 BY EFFECTIVELY EXERCISING THE RENEWAL OPTION
CONTAINED IN AMENDMENT NO. 1; AND SETTING A PUBLIC HEARING, AS
REQUIRED PURSUANT TO SECTION 82-37(A)(2) OF THE CITY CODE, FOR
SECOND (AND FINAL) READING AND PUBLIC HEARING.
WHEREAS, on or about July 8, 1976, the City Commission of the City of Miami Beach
adopted Resolution No. No. 1976-15085, approving a Lease Agreement between the City and
Senior Citizens Housing Development Corporation of Miami Beach ("Lease"), for certain air rights
and easements to City-owned property located at 1040 Collins Avenue, for the construction and
operation of a residential building for elderly housing ("Council Towers North" or the"Building"), and
with the City retaining the rights to the management and operation of the municipal parking lot on
the ground floor below the demised premises; and
WHEREAS, the Lease had an initial term of fifty(50) years, expiring on July 8, 2026; and
WHEREAS,the Building was completed in 1979,and includes approximately 125 residential
dwelling units, providing quality affordable rental housing for low-income seniors; and
WHEREAS, on or about March 8, 1978, and in accordance with Section 34 of the Lease,
the original lessee, Senior Citizens Housing Development Corporation of Miami Beach, assigned
the Lease to Lessee, and such assignment was duly recorded in O.R. Book 9967, Page 271 of the
public records of Miami-Dade County; and
WHEREAS, Lessee desires to obtain financing, either through a leasehold mortgage, low
income housing tax credit equity providers, or other financing vehicles eligible for affordable/elderly
housing projects such as the Building, for the purpose of constructing certain capital improvements
or other renovations to the Building, including building systems, individual dwelling units, and
common areas, with the intent for such improvements, as defined more fully in Section II of this
Amendment No. 1, to improve security, safety, and the quality of living conditions for the Building's
residents; and
WHEREAS, Amendment No. 1 provides for a lease term expiring on July 8, 2026 with an
option to renew for an additional 50 year term, expiring on July 8, 2057, subject to Lessee's
compliance with the terms of the Lease; and
WHEREAS, in order to obtain long-term financing for the Lessee's proposed renovations,
Lessee requests amending the Lease to provide for an initial term expiring on July 8, 2076, which
amendment will effectively authorize the renewal option set forth in Amendment No. 1; and
WHEREAS; in addition to the extension of the term, Lessee is requesting additional
amendments to the Agreement required by HUD to obtain financing, including removing HUD's right
to purchase good and marketable fee title to the demised premises, within twelve (12) months after
acquiring the demised premises found in Section 34, part 2 of the Lease; and
WHEREAS, in view of the City Commission's desire to support and incentivize affordable
housing projects within the City of Miami Beach, including affordable elderly housing, the City
Commission desires to extend the term of the Lease, and waives the competitive bidding and
appraisal requirements of Chapter 82-37 and 82-39 of the City Code, finding it in the best interests
of the City to do so; and
WHEREAS, a lease of ten years or more of the 1040 Collins Avenue property is governed
by the provisions of Section 1.03(b)(4)of the City Charter, and requires approval of a majority 4/7ths
vote of all members of the Planning Board, and a 6/7ths vote of the City Commission; and
WHEREAS, on December 19, 2017, following consideration of the Planning Department
analysis required pursuant to Section 82-38 of the City Code, the proposed lease extension was
unanimously approved by the Planning Board; and
WHEREAS, on February 23, 2018, as required by Section 82-37 of the City Code, the
Finance and Citywide Projects Committee reviewed the proposed lease, and unanimously
recommended that the Mayor and City Commission approve the foregoing Amendment No. 1, a
copy of which is attached to the Commission Memorandum accompanying this Resolution.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve, on
first reading, an Amendment No. 2 to the Lease between the City (Lessor) and EHDOC Council
Towers Limited Partnership (Lessee), in connection with the City's lease of air rights for affordable
elderly housing at Council Towers North, located at 1040 Collins Avenue, Miami Beach, Florida, to
amend the current Lease to incorporate certain HUD requirements and modifications necessary for
HUD to insure the mortgage loan that will refinance the property and pay for the agreed upon
improvements, including extending the lease term to July 8, 2076 by effectively exercising the
renewal option contained in Amendment No. 1; and setting a public hearing, as required pursuant
to Section 82-37(A)(2)of the City Code, for second (and final) reading and public hearing.
PASSED AND ADOPTED this as day of Fedai4( 020.
Dan Gelber, Mayor
ATTEST:
APPROVED AS TO
FORM & LANGUAGE
,11 Z/fig/ _ < �. & FOR EXEC TION
Ra'ael E. Granado, City Clerk gp
ORATEDi -
City Attorney JJ Date