Resolution 2021-31554 RESOLUTION NO. 2021-31554
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, APPROVING, FOLLOWING SECOND READING, A
LEASE AGREEMENT ("LEASE"), AS AUTHORIZED UNDER SECTION 82-
37 OF THE CITY CODE AND SECTION 1.03(B)(4) OF THE CITY CHARTER,
BETWEEN THE CITY OF MIAMI BEACH ("CITY") AND COMMUNITY
FINANCE CORPORATION, AN ARIZONA NOT-FOR-PROFIT
CORPORATION, OR AN AFFILIATE THEREOF ("LESSEE"), OF THE CITY-
OWNED PROPERTY LOCATED AT 224 23RD STREET (THE
"PROPERTY"), FOR THE CONSTRUCTION OF THE COLLINS PARK
ARTIST WORKFORCE HOUSING PROJECT ON THE PROPERTY, A
PROPOSED DEVELOPMENT WHICH SHALL INCLUDE (1) RESIDENTIAL
WORKFORCE HOUSING UNITS, FOR ARTISTS, TEACHERS, AND OTHER
INCOME-ELIGIBLE TENANTS; (2) RESIDENTIAL DORMITORY SPACE,
INTENDED FOR USE BY MIAMI CITY BALLET, INC. (THE "BALLET"), TO
SUPPORT THE MIAMI CITY BALLET'S DANCE EDUCATION AND OTHER
PROGRAMS OR, IF AGREEMENT WITH THE BALLET CANNOT BE
REACHED, ADDITIONAL WORKFORCE HOUSING UNITS; AND (3)
GROUND FLOOR RETAIL OR CULTURAL SPACE (COLLECTIVELY, THE
"PROJECT"); FURTHER, PROVIDING FOR THE PROJECT TO BE
DEVELOPED, DESIGNED, FINANCED, CONSTRUCTED, AND OPERATED
IN ACCORDANCE WITH THE TERMS OF THE LEASE AND THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY AND SERVITAS, LLC
FOR THE PROJECT,APPROVED PURSUANT TO RESOLUTION NO. 2021-
31553 ; AND FURTHER PROVIDING FOR A MAXIMUM TERM OF
NINETY (90) YEARS, WITH AN INITIAL TERM OF FIFTY (50) YEARS, AND
TWO (2) RENEWAL TERMS, FOR A PERIOD OF TWENTY (20) YEARS
EACH, ON MUTUAL AGREEMENT OF THE CITY AND LESSEE; AND
FURTHER, APPROVING THE DISTRIBUTIONS OF NET AVAILABLE CASH
FLOW TO THE BALLET AS PROVIDED IN THIS RESOLUTION, AND
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE FINAL
LEASE.
WHEREAS, the Mayor and City Commission has identified the need for workforce
and affordable housing in the City as a key objective in the City's 2019 Strategic Plan:
Through the Lens of Resilience; and
WHEREAS, in the City's 2040 Comprehensive Plan, the Mayor and City
Commission has prioritized workforce and affordable housing, with the express goal "to
encourage redevelopment that provides workforce and affordable housing" within the
City; and
WHEREAS, in the City's 2019 Strategic Plan, the City has also committed to
support, develop, coordinate and promote performance, visual and other cultural arts
within the City, including elevating the Collins Park Cultural District, where the proposed
project is to be located; and
WHEREAS, the City is the owner of the property located at 224 23rd Street (the
"Property"), the current site of a 21-space public parking lot, and desires to redevelop the
Property as a mixed use residential workforce housing development, and further desires
to prioritize housing for income-eligible artists and educators (the "Collins Park Artist
Workforce Housing Project" or "Project"), to accomplish two of the City's strategic
planning objectives; and
WHEREAS, on September 14, 2016, the Mayor and City Commission adopted
Resolution No. 2016-29547, selecting The Concourse Group to identify public-private
partnership (P3) opportunities to alleviate the cost and other burdens on the City
associated with the development of workforce/affordable housing projects on City
property, including with respect to the proposed Collins Park Artist Workforce Housing
Project; and
WHEREAS, on December 14, 2016, the Mayor and City Commission adopted
Resolution No. 2016-29679, approving a height waiver for the Collins Park Artist
Workforce Housing Project, to authorize a height of up to 75 feet, finding that the waiver
was necessary in order to provide optimal development and to allow for maximum
capacity for artist/workforce housing; and
WHEREAS, the Miami City Ballet, Inc. (the "Ballet"), South Florida's premier
classical ballet company, is a not-for-profit charitable cultural organization, headquartered
in the vicinity of the Property, at 2200 Liberty Avenue, Miami Beach, Florida; and
WHEREAS, on January 18, 2019, the City issued a competitive solicitation (ITN
2019-099-KB) for the Project, which expressly encouraged proposers to incorporate the
participation of the Ballet as part of the Project, in an effort to address the Ballet's
dormitory housing needs and program the workforce housing component of the Project
with a focus on attracting artists and area educators to the City; and
WHEREAS, on July 17, 2019, the Mayor and City Commission adopted Resolution
No. 2019-30908, authorizing simultaneous negotiations with both ITN proposers;
following withdrawal from one of the ITN proposers, the City Commission directed
negotiation with the sole remaining proposer, Servitas, LLC ("Servitas" or "Developer");
and
WHEREAS, Developer, in collaboration with Community Finance Corp., a not-for-
profit corporation that exists to facilitate capital projects for governmental entities
throughout the United States, has proposed a public-private partnership with the City that
would advance the City's policy objectives of developing workforce housing, primarily for
artists, educators and first responders, in the City by reducing the cost of capital for the
Project and thereby freeing fiscal resources of the City for other governmental uses and
reducing the occupancy costs of the Ballet; and
2
WHEREAS, the Developer intends to develop the mixed-use residential workforce
housing Project pursuant to a Florida Statute Chapter 163 development agreement
entered into between the City and the Developer(the "Development Agreement"); and
WHEREAS, the proposed development would consist of a 7-story building,
designed by Shulman & Associates and PGAL Architects, with (1) approximately eighty
(80) residential workforce housing units, for artists, teachers, and other income-eligible
tenants; (2)dormitory housing, intended for use by the Ballet,to support the Ballet's dance
education and other programs or, if agreement with the Ballet cannot be reached, up to
sixteen (16) additional workforce housing units; and (3) ground floor retail or cultural
space, with the building constructed on the Property to be limited to a maximum height of
75 feet, as approved by the City Commission; and
WHEREAS, as proposed, the City will enter into a development agreement with
Servitas to govern the development of the Project, and in addition thereto, the City will
enter into a long-term ground lease for the Property (the "Lease") with a nonprofit
501(c)(3) organization, Community Finance Corporation, or an affiliate thereof (the
"Ground Lessee"); and
WHEREAS, the proposed Lease is attached as an exhibit to the Commission
Memorandum accompanying this Resolution; and
WHEREAS, the Lessee would finance the design and construction of the Project
through the issuance of tax-exempt and taxable project revenue bonds (which would be
non-recourse to the City,with principal and interest payable solely from Project revenues);
and
WHEREAS, on September 23, 2020, the Finance and Economic Resiliency
Committee ("Finance Committee") reviewed the proposed transaction and unanimously
recommended that the Administration proceed with the proposed Project, including the
Development Agreement and Lease; and
WHEREAS, on October 18, 2020, the Mayor and City Commission accepted the
recommendation of the Finance Committee, and referred the proposed Project to the
Planning Board for its review; and
WHEREAS, pursuant to Section 1.03(b)(4) of the City Charter governing leases of
ten years or longer of City-owned property, the Lease requires approval by a majority 4/7
vote of all members of the Planning Board, and a 6/7 vote of the City Commission; and
WHEREAS, on November 17, 2020, the Planning Board approved the proposed
Lease pursuant to the requirements of Section 1.03(b)(4) of the City Charter, and voted
to transmit the Development Agreement to the City Commission with a favorable
recommendation, in accordance with the City's Land Development Regulations; and
3
WHEREAS, the Planning Department analysis of the Lease, pursuant to Section
82-38 of the City Code, is attached as an exhibit to the Commission Memorandum
accompanying this Resolution; and
WHEREAS, as required by Section 82-39 of the City Code, the City engaged an
independent appraiser to independently estimate the fair market value of the Lease of the
Property, and a copy of the appraisal is attached as an exhibit to the Commission
Memorandum accompanying this Resolution; and
WHEREAS, on December 9, 2020, the Mayor and City Commission approved, on
first reading, the Development Agreement and the Lease; and
WHEREAS, on January 13, 2021, the Mayor and City Commission approved, by
a 5/7th vote, a waiver of the minimum and average unit size requirements for workforce
housing in Section 142-337 (for up to'/ of the studio units for the Project), and the parking
requirements in Section 130-33 of the City Code, pursuant to Section 142-425(d) and
142-425(e) of the City Code; and
WHEREAS, the Lease would be effective at the Financial Closing for the Project
(when the financing is in place and all permits and approvals for the commencement of
construction have been obtained), for an initial term of fifty (50) years, with two renewal
terms of twenty (20) years each, on mutual agreement of the parties; and
WHEREAS, the Lease provides, among other provisions, the following terms and
conditions:
• Lessee, by and through its Developer, shall complete, or cause to be
completed, the design, permitting and construction of the Project, in
accordance with the terms and conditions set forth in the Development
Agreement and the City Code, with Project costs, including Developer's fees,
payable from the Project bond proceeds, and with City's financial contribution
limited to City's payment of a maximum of $200,000 for environmental
remediation costs, if any; and
• The Project financing shall be non-recourse to the City (with no pledge of City
revenue or covenant to budget and appropriate from any revenue source) and
with the Lease and the Project financing to be subordinate to City's fee interest
in the Property; and
• Any Project costs advanced or funded by the City (i.e. for environmental
remediation) will be reimbursed to the City either at Financial Closing, or from
the Project's net revenues, prior to any distribution of net revenues to any other
Party; and
4
• Both the Development Agreement and the Lease include restrictive covenants
requiring the residential units to be offered as workforce housing units in
accordance with Chapter 58 of the City Code, available only to tenants who
earn less than 120% of Area Median Income, and with tenants being charged
a maximum of 30% of the applicable AMI, which restrictions shall be in place
throughout the entire term of the Lease; and
• The Lease would permit a master sublease between the Lessee and the Ballet,
for the second floor dormitory housing units, and at City's election, a master
sublease with the City, for the ground floor space, to permit the City to
coordinate and control cultural activations therein; and
• The Lease provides the City with the option to purchase the Lease prior to the
expiration of the term, with the purchase price consisting of the amount of the
then-remaining outstanding principal and interest on the Project revenue bonds
(if any), plus closing costs and any other fees that may have been otherwise
due to the Lessee at the time of the repurchase, if any; and
WHEREAS, the Lease specifies that the City shall receive, as rent under the
Lease, 100% of the net revenues of the Project, after payment of all operating expenses,
debt service and reserve requirements (the "Net Available Cash Flow"), throughout the
Lease term; and
WHEREAS, as the Project involves a public-private partnership that expressly
includes the goal of supporting the cultural activities of the Ballet, the City has agreed to
designate the Ballet as a beneficiary of a portion of the Net Available Cash Flow
generated from the operation of the Premises, subject to and contingent upon the Ballet
remaining (i) headquartered in Miami Beach, Florida and (ii) in occupancy of the dormitory
housing units for the Project, pursuant to a Master Sublease, and in good standing and
not in default thereunder. Subject to the foregoing, all Net Available Cash Flow to be
distributed each year in the following order of priority:
• First, to the City, until such time as the City has been fully reimbursed
for all Project Costs (as such term is defined in the City Development Agreement)
advanced or covered by the City in support of the development and construction
of the Project;
• Second, to the Ballet, as a grant by the City to the Ballet, to offset the
Ballet's annual rental charges for its use of the dormitory housing pursuant to the
Master Sublease, which amount is estimated to be approximately $363,000
(inclusive of common area maintenance and common area utility charges). In the
event the Net Available Cash Flow is insufficient to cover the Ballet's annual rent
under the Master Sublease in any given year, the Ballet shall nevertheless be
responsible for payment of its rental obligations in accordance with the Master
5
Sublease(with no carry over or other right to reimbursement from the Net Available
Cash Flow in any subsequent year);
• Third, and only after Ballet's annual rental obligation for the dormitory
housing has been fully reimbursed in any given Lease Year, the remaining Net
Available Cash Flow shall be retained by the City, first to cover any rental
obligations of the City, in the event the Lessor elects to enter into a master
sublease for the use of the ground floor for cultural purposes, with estimated rent
at $26 per square foot ("Ground Floor Master Sublease"), with any remaining Net
Available Cash Flow to be used by the City for any other purpose, at its sole
discretion; and
• Fourth, and only after City receives either (x) full reimbursement for
its annual rental obligation pursuant to any Ground Floor Master Sublease, if City
elects to enter into such agreement, Net Available Cash Flow shall be used to
offset up to fifty percent (50%) of the Ballet's additional rental costs for Additional
Dormitory Housing (as such term is defined in the City Development Agreement),
or such greater amount as may be approved by the City Commission, in the event
the Ballet elects to expand its Master Sublease to include Additional Dormitory
Housing, with any remaining Net Available Cash Flow to be retained by the City,
for use at its discretion; and
• In the event the above conditions are not satisfied relating to the
Ballet remaining headquartered in Miami Beach and in good standing with respect
to its occupancy of the dormitory housing units, all Net Available Cash Flow shall
be retained by the City.
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 hereby approve, following second reading a Lease Agreement ("Lease"), as
authorized under Section 82-37 of the City Code and Section 1.03(b)(4) of the City
Charter, between the City of Miami Beach ("City") and Community Finance Corporation,
an Arizona not-for-profit corporation, or an affiliate thereof ("Lessee"), of the City-owned
property located at 224 23rd Street(the "Property"), for the construction of the Collins Park
Artist Workforce Housing Project on the Property, a proposed development which shall
include (1) residential workforce housing units, for artists, teachers, and other income-
eligible tenants; (2) residential dormitory space, intended for use by Miami City Ballet, Inc.
(the "Ballet"), to support the Ballet's dance education and other programs or, if agreement
with the Ballet cannot be reached, additional workforce housing units; and (3)ground floor
retail or cultural space (collectively, the "Project"); further, providing for the Project to be
developed, designed, financed, constructed, and operated in accordance with the terms
of the Lease and the Development Agreement between the City and Servitas, LLC for the
Project, approved pursuant to Resolution No. 2021- 31553 ; and further providing
for a maximum term of ninety (90) years, with an initial term of fifty (50) years, and two
(2) renewal terms, for a period of twenty(20)years each, on mutual agreement of the City
and Lessee; and further, approve the distributions of Net Available Cash Flow to the Ballet
as set forth herein, and authorize the Mayor and City Clerk to execute the final Lease.
6
PASSED and ADOPTED THIS /3 day of January, 2021.
ATTEST:
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RAF EL E. GRA ADO, CITY CLERK DAN GELBER, MAYOR
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Resolutions -R7 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul J.Aguila, Interim City Manager
DATE: January 13, 2021
11:01 a.m. Second Reading Public Hearing
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, APPROVING, FOLLOWING SECOND READING, A
LEASE AGREEMENT ("LEASE"), AS AUTHORIZED UNDER SECTION 82-
37 OF THE CITY CODE AND SECTION 1.03(8)(4) OF THE CITY CHARTER,
BETWEEN THE CITY OF MIAMI BEACH ("CITY") AND COMMUNITY
FINANCE CORPORATION, AN ARIZONA NOT-FOR-PROFIT
CORPORATION, ORAN AFFILIATE THEREOF ("LESSEE"), OF THE CITY-
OWNED
ITYOWNED PROPERTY LOCATED AT 224 23RD STREET (THE
"PROPERTY"), FOR THE CONSTRUCTION OF THE COLLINS PARK
ARTIST WORKFORCE HOUSING PROJECT ON THE PROPERTY, A
PROPOSED DEVELOPMENT WHICH SHALL INCLUDE (1) RESIDENTIAL
WORKFORCE HOUSING UNITS, FOR ARTISTS, TEACHERS, AND
OTHER INCOME-ELIGIBLE TENANTS; (2) RESIDENTIAL DORMITORY
SPACE, INTENDED FOR USE BY MIAMI CITY BALLET, INC. (THE
"BALLET"), TO SUPPORT THE MIAMI CITY BALLET'S DANCE
EDUCATION AND OTHER PROGRAMS OR, IF AGREEMENT WITH THE
BALLET CANNOT BE REACHED, ADDITIONAL WORKFORCE HOUSING
UNITS; AND (3) GROUND FLOOR RETAIL OR CULTURAL SPACE
(COLLECTIVELY, THE "PROJECT"); FURTHER, PROVIDING FOR THE
PROJECT TO BE DEVELOPED, DESIGNED, FINANCED,
CONSTRUCTED,AND OPERA TED IN ACCORDANCE WITH THE TERMS
OF THE LEASE AND THE DEVELOPMENT AGREEMENT BETWEEN THE
CITY AND SERVITAS, LLC FOR THE PROJECT, APPROVED PURSUANT
TO RESOLUTION NO. 2021- ; AND FURTHER PROVIDING FOR A
MAXIMUM TERM OF NINETY (90) YEARS, WITH AN INITIAL TERM OF
FIFTY (50) YEARS, AND TWO (2) RENEWAL TERMS, FOR A PERIOD OF
TWENTY(20)YEARS EACH, ON MUTUAL AGREEMENT OF THE CITYAND
LESSEE; AND FURTHER, APPROVING THE DISTRIBUTIONS OF NET
AVAILABLE CASH FLOW TO THE BALLET AS PROVIDED IN THIS
RESOLUTION, AND AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE FINAL LEASE.
RECOMMENDATION
See attached Consolidated Commission Memorandum.
Page 1431 of 1954
Applicable Area
South Beach
Is this a"Residents Right Does this item utilize G.O.
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Mobility-Support affordable, compatible workforce housing.
Legislative Tracking
Economic Development
ATTACHMENTS:
Description
❑ Commission Memorandum
❑ Resolution
❑ Ad
Page 1432 of 1954
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachFl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Raul Aguila, Interim City Manager
DATE: January 13, 2021
SUBJECT: COLLINS PARK ARTIST I WORKFORCE HOUSING PROJECT —
SECOND READING / PUBLIC HEARING
This is a Consolidated Commission Memorandum related to the Collins Park
ArtistNVorkforce Housing Project, including the second reading public hearing of
the Development Agreement (Agenda Item R7C), the second reading/public
hearing of the Ground Lease (R7D), as well as the public hearing relating to the
waiver of certain GU zoning regulations, as referenced in the Development
Agreement (Agenda Item R7E).
HISTORY
The Mayor and City Commission have identified the need for workforce and
affordable housing in the City as a key objective in the City's 2019 Strategic Plan:
Through the Lens of Resilience. The City's 2040 Comprehensive Plan prioritizes
workforce and affordable housing, with the express goal "to encourage
redevelopment that provides workforce and affordable housing" within the City.
In addition, in the City's 2019 Strategic Plan, the City has committed to support,
develop, coordinate and promote performance, visual and other cultural arts
within the City, including elevating the Collins Park Cultural District, where the
proposed project is to be located.
The City is the owner of the property located at 224 23rd Street (the "Property"),
the current site of a 21-space public parking lot, and desires to redevelop the
Property as a mixed-use residential workforce housing development, and further
desires to prioritize housing for income-eligible artists and educators(the"Collins
Park Artist Workforce Housing Project" or "Project"), to accomplish two of the
City's strategic planning objectives. The Miami City Ballet, Inc. (the "Ballet"),
South Florida's premier classical ballet company, is a not-for-profit charitable
cultural organization, headquartered in close vicinity of the Property, at 2200
Liberty Avenue, Miami Beach, Florida.
Page 1433 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 2 of 14
On September 14, 2016, the Mayor and City Commission adopted Resolution
No. 2016-29547, selecting The Concourse Group to identify public-private
partnership (P3) opportunities to alleviate the cost and other burdens on the
City associated with the development of workforce/affordable housing projects
on City property, including with respect to the proposed Collins Park Artist
Workforce Housing Project.
On December 14, 2016, the Mayor and City Commission adopted Resolution
No. 2016-29679, approving a height waiver for the Collins Park Artist Workforce
Housing Project, to authorize a height of up to 75 feet, finding that the waiver
was necessary in order to provide optimal development and to allow for
maximum capacity for artist/workforce housing.
On January 18, 2019, the City issued a competitive solicitation for the Project
(ITN 2019-099-KB), which expressly encouraged proposers to incorporate the
participation of the Ballet as part of the Project, in an effort to address the
Ballet's dormitory housing needs and program the workforce housing
component of the Project with a focus on attracting artists and area educators
to the City.
On July 17, 2019, the Mayor and City Commission adopted Resolution No.
2019-30908, authorizing simultaneous negotiations with both ITN proposers
Servitas, LLC and Atlantic Pacific Communities, LLC. Following the withdrawal
of Atlantic Pacific, the City Commission directed negotiation with the sole
remaining proposer, Servitas, LLC ("Servitas" or"Developer").
ANALYSIS
Overview of the Proposal and Proiect Delivery Structure
The Developer, in collaboration with Community Finance Corp., a not-for-profit
corporation that specializes in facilitating capital projects for governmental
entities throughout the United States, has proposed a public-private partnership
with the City that would advance the City's policy objectives of developing
workforce housing in the City. The Developer intends to develop the mixed-use
residential workforce housing Project pursuant to a Florida Statute Chapter 163
development agreement entered into between the City and the Developer (the
"Development Agreement").
Servitas proposes a 7-story building constructed on the Property, designed by
Shulman + Associates in collaboration with PGAL Architects, to be limited to a
maximum height of 75 feet, as previously approved by the City Commission,
with:
Page 2 of 14
Page 1434 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 3 of 14
(1) approximately 80 workforce housing units on the highest five floors:
• 50% - 40 studios (average size 403 sf)
• 25% - 20 one-bedroom units (approx. 518 sf each)
• 25% - 20 two-bedroom units (approx. 640 sf each)
(2) approximately 32-bed dormitory on the second floor intended for use by
the Ballet, to support the Ballet's dance education and other programs
(including two private units for Ballet staff)or, if agreement with the Ballet
cannot be reached, up to 16 additional workforce housing units
(3) ground floor retail or cultural space
One of the key aspects of the Servitas proposal that distinguishes its proposal
from other public-private proposals the City has received is that this Project
would ultimately be not-for-profit in character, in that it would be leased
by a non-profit entity and used for not-for-profit purposes at all times.
As proposed, the City would enter into a development agreement with Servitas
to govern the development of the Project, and in addition thereto, a long-term
ground lease for the entire property (the "Lease") with a non-profit 501(c)(3)
organization, Community Finance Corporation, or an affiliate thereof (the
"Ground Lessee"), which would finance the design and construction of the
Project with tax exempt bond financing (which would be non-recourse to the
City,with principal and interest payable solely from Project revenues). Once the
Project is constructed, the Ground Lessee would have overall responsibility for
the operation of the Project.
Based on the information provided to the City by Servitas, Community Finance
Corporation, the proposed Ground Lessee, is a not-for-profit Arizona
corporation organized and operated exclusively for the purpose of assisting
governments and nonprofits with the construction and financing of public
buildings, and accordingly, is operated exclusively for charitable purposes.
Community Finance Corp. has participated in over $1.3 billion in P3 projects
throughout the United States, including a wide range of governmental and
nonprofit uses, such as office facilities, parking structures, public
safety/correctional facilities, university facilities, privatized student housing, and
infrastructure.
Under the proposed structure, Servitas would earn a Development Fee for
delivery of the completed Project to the Ground Lessee (discussed further
below in Section 4), with its fees to be covered by the tax-exempt bonds issued
by the Ground Lessee to finance the Project. Following completion of the
Project, Servitas would separately contract with the Ground Lessee to provide
asset management services to the Ground Lessee.
Page 3 of 14
Page 1435 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 4 of 14
Accordingly, if the Project proceeds to a Financial Closing, the Project
would be constructed, and managed, with limited City financial
participation, and the City would not be responsible for payment of any of
Servitas's fees or for Project development costs, with limited exceptions
discussed more fully herein. Specifically, Servitas proposes for certain pre-
development environmental expenses to be covered by the City, if any, subject
to reimbursement of the City from bond proceeds at Closing or from surplus
revenues later once the Project is completed. See Section 3 below for further
explanation.
Once the Project is constructed,the Ground Lessee would be solely responsible
for the operation and maintenance of the Project, with the intent that the Project
would be entirely self-supported by the rental revenues the Project will
generate. To the fullest extent possible under applicable law, the Project would
be structured to be exempt from ad valorem taxes, pursuant to exemptions that
are available for workforce/affordable housing, and/or otherwise available for
properties leased and used for exempt not-for-profit purposes. For this reason,
it is anticipated that the Project may be subdivided as a leasehold condominium
(consisting of three leasehold condominium units, with one condo unit for the
ground floor cultural or retail space; one condo unit for the dormitory housing,
and one condo unit to include all of the workforce housing unit), to preserve the
applicable exemptions from ad valorem for the Project, to the fullest extent
possible.
To the extent the revenues of the Property generate surplus revenues (after
payment of all operating expenses, maintenance reserves, and debt service
reserves), such revenues would solely inure for the benefit of the City or
any other not-for-profit entity designated by the City to receive surplus
revenues.
Key Lease Terms
Address 224 23rd Street
Ground Lessee Community Finance Corp., a 501(c)(3)entity
Upon Financial Closing for the Project, when the
Lease Effective financing is in place and all permits and approvals for
Date the commencement of construction have been
obtained
Initial Term 50 years
Page 4 of 14
Page 1436 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021-Second Reading
Page 5 of 14
Renewals Two renewal terms of 20 years each, on mutual
agreement of the parties
• Ground lessee will finance development entirely
Financing with tax exempt bond financing, which would be
non-recourse to the City, with principal and
interest payable solely from Project revenues.
• Lease is "unsubordinated", meaning that the
rights of any lender or bond holders will be
subordinate to, and would not otherwise affect,
the City's fee interest in the property.
• However, as the bond financing for the Project
will be secured by a leasehold mortgage, the
Lease provides standard "step-in"rights to permit
the first city mortgagee to cure defaults in the
event the Lessee fails to perform in accordance
with the Ground Lease.
Project operates as a nonprofit and surplus revenues
Rent/ Revenue (after operating expenses, debt service, and
reserves)inure to the benefit of the City, as proposed
in section 1 below: first, to cover City's development
costs, second, to cover the Ballet's rental costs of the
2nd floor dormitory, third, to cover City's costs for the
ground floor activation, and fourth, either to the City,
or to cover up to 50% of Ballet's potential costs to
expand dormitory use, with the balance of revenues
to the City.
Environmental costs in excess of$20,000 and up to
City Financial $200,000, to be reimbursed by Project at Financial
Participation Closing or with Project's net revenues, prior to any
distribution of net revenues to any other party. Given
that the Phase 2 environmental report has now
been completed and minimal issues were noted,
City is unlikely to expend any significant amount
for environmental costs. Once constructed,
operation of the facility is entirely self-supported by
rental revenues.
• Up to HPB approval: Maximum of$500,000
City • After HPB approval but before Financial Closing:
Pre-development Maximum of$800,000.
Liability (In all instances, City to receive an assignment of all
plans and other work product)
Page 5 of 14
Page 1437 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 6 of 14
Termination for • City: Any time prior to HPB approval
Convenience • Developer. Any time prior to Financial Closing
Property Manager responsible for facility
Maintenance maintenance, utilities, and standards of operation.
Each year, City approves operating plan and annual
budget
Standard terms for the protection of the City,
Insurance including insurance requirements and broad
indemnification of the City
Building Size 72,972 gross square feet (GSF)
47,820 net rentable square feet (NRSF)
• Ground floor retail or cultural space (subject to,
Uses at the City's election, a master sublease with the
City)
• 2nd floor. Miami City Ballet dormitory (subject to
master sublease)
• Floors 3— 7: approximately 80 workforce housing
units, consisting of 50% studios, 25% one-
bedroom, 25% two-bedroom units
• Income-eligible persons earning at or below
120% AMI, paying rent at maximum of 30% AMI,
Workforce with the units available for artists, educators, etc.
Tenants per the tiers described in Section 6 below
• In addition to the restrictive covenants related to
workforce housing as set forth in the Lease,
because the project is intended to be financed
with tax-exempt bonds, the conditions of the
Bond Documents will further ensure that the
Property is only used for the workforce housing
purposes for which it is intended, and not
converted to market rate rental units
• First workforce housing project proposed for
Public development within the City
Benefits • Little financial cost(s)to the City, if any, and all of
which will be reimbursed to the City if incurred
Page 6 of 14
Page 1438 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 7 of 14
• Housing for City's cultural arts partner Miami City
Ballet, adjacent to its headquarter facility
• Option for City to control ground floor
programming
• Ownership of the building transfers to the City
upon expiration of the Lease.
• City has option to purchase the Lease prior to the
expiration of the term, with the purchase price
consisting of the amount of the then-remaining
outstanding principal and interest on the Project
revenue bonds (if any), plus closing costs and
any other fees that may have been otherwise due
to the Lessee at the time of the repurchase, if any
1. Participation of Ballet and Distribution of the Project's Annual Net
Proceeds.
One of the key features of the proposal is that all of the net proceeds, if any,
generated from the Project throughout the entire term of the lease (after the
payment of all operating expenses, debt service, and maintenance reserves)
shall constitute rent to the City and will be dedicated for use by the City
Commission (or any other not-for-profit entity designated by the City to receive
the "surplus revenues"). A summary of the Project Pro Forma, attached
as Exhibit C. indicates annual surplus revenues starting in Project Year 3 and
all subsequent years, which will inure to the benefit of the City or its designees,
as Rent under the Ground Lease.
The proposed agreements contemplate that the Ballet will enter into a master
sublease for the entire second floor dormitory housing, potentially for a 35-year
master sublease, and that the Ballet would pay rent for its use of the second-
floor dormitory space, in the approximate annual amount of$363,841 in the first
rental year, subject to 2% annual increases. This amount is consistent with the
amounts Miami City Ballet has previously advised the City that it spends
annually in connection with housing for dancers and Ballet participants. The
agreements further provide that the Ballet may, at some point in the future, elect
to expand its sublease to include additional dormitory housing on the third
floor. From a financing perspective, the guaranteed rental income from the
lease of an entire floor to a single entity is beneficial to the Project, as stable
rental flows reduce the financing risks associated with the Project.
Miami City Ballet has proposed that it be designated as a Project beneficiary to
receive surplus revenues from the Project, so that if the Project is successful
and generates net proceeds, the Project would serve to potentially subsidize
and reduce the Ballet's rental obligations with respect to the dormitory floor, and
Page 7 of 14
Page 1439 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 8 of 14
thereby free up funds for the Ballet to enhance its cultural and charitable mission
to provide dance education and cultural programming, in close proximity to its
headquarters in Collins Park.
The foregoing benefits for the Ballet presume that the Ballet will ultimately
participate in the Project and confirm its long-term commitment via a master
sublease for its use of the dormitory floor. In the event MCB determines that it
cannot participate in the Project, the second floor would be designed to
accommodate approximately 16 additional workforce housing units. City staff is
working with Servitas and MCB with regard to the timing for confirming MCB's
participation as early as possible in the process, to avoid additional costs or
delays associated with the necessary design changes that would be required to
convert the dormitory floor to regular workforce housing units.
Subject to City Commission approval of the Ballet as a beneficiary, the
Administration proposes that net proceeds be distributed in the following
manner:
• First, to the City to reimburse any Project costs advanced by the
City for the development or construction of the Project.
• Second, to the Miami City Ballet, until such time as the Ballet's
rental costs for the second-floor dormitory are fully covered
• Third, to the City, to cover City's rental costs if City elects to sub-
lease the ground floor for cultural activation purposes
• Fourth (subject to further negotiation with the Ballet), to cover fifty
percent of Ballet's costs in the event the Ballet elects to enter into
a sublease for additional dormitory housing on the third floor, with
any balance remaining, if any, being paid to the City.
2. Use of Ground Floor Space, either for Revenue-Generating Retail to
Support the Project or for Cultural Activation.
Servitas has indicated a willingness to work with the City with respect to the
programming for the ground floor, provided, however, that no matter how the
space is used, the ground floor needs to generate rental income in order to
support the financing for the Project. The most recent proposal includes 5,329
sf of revenue-generating retail and/or cultural space, with separate entrances
for both the Ballet dormitory and the workforce housing component.
Subject to direction from the City Commission, the proposed agreements
provide the City with the option to enter into a master sublease (or have a right
of first refusal to do so), for the entire ground floor leasable space (subject to
City payment of ground floor rent), in order to curate an appropriate street level
activation compatible with the Collins Park Arts and Culture District. To this end,
Servitas has proposed annual rent of approximately $27.60 per square foot
(current value), inclusive of common area maintenance and utility expenses,
Page 8 of 14
Page 1440 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021-Second Reading
Page 9 of 14
subject to 2% annual increases. The Administration believes that this amount is
not inconsistent with current market rate rents for commercial retail. The lease
provides that the City must provide notice to the Developer no later than October
1, 2022 whether the City will elect its option to lease back the ground floor
space. This notice period assumes that construction will commence in late 2021
and be completed in 2023.
Recognizing the ground floor use's vital role in neighborhood placemaking, the
Finance and Economic Resiliency Committee ("Finance Committee")
recommended that the City should have the ability, at its option, to program the
space. In addition, and as set forth above in the proposed flow of funds for the
distribution of the net proceeds, the Finance Committee recommended that
surplus revenues should be used to subsidize the City's costs in renting the
space, following payment to the Ballet to support its dormitory housing. In
addition to any annual rental payment by the City as lessee, in order to sub-
lease the space to a chosen cultural arts partner, there will be additional costs
associated with buildout of the ground floor retail space. The Development
Agreement requires Servitas to deliver the ground floor retail space as a
baseline shell, with requirements for a minimum amount of base systems and
finishing. These minimum baseline requirements are listed in an exhibit to the
Development Agreement. During sub-lease of the ground floor space, the City
can elect to negotiate for a financial contribution from the sublessee to help
defray costs associated with preparing the space for the intended use.
3. City Contribution for Environmental Remediation Costs for the
Project.
Servitas will be responsible for obtaining an d paying for environmental reports
necessary to determine the scope of work and associated costs of any required
environmental remediation, subject to City prior approval. Servitas will cover
initial costs up to $20,000 (as a Project reimbursable cost), with the City
responsible for amounts in excess of $20,000, up to a maximum City
contribution for environmental expenses of $200,000. In the event that the
parties anticipate that remediation costs would exceed $200,000, the City would
have a right to terminate the Development Agreement. Any amount expended
by the City with respect to the foregoing would be reimbursed to the City at
Closing (to the extent such costs are financeable), or from the net revenues of
the Project, with the City to receive first priority for payment of such expenses
from the net revenues of the Project. Note: Following First Reading, the
Developer completed a Phase 2 environmental site assessment, which
concluded that the Property would not require environmental remediation.
Accordingly, barring any unforeseen discovery during site preparation, the
City's potential liability for environmental costs appears to be resolved as
a nonissue.
Page 9 of 14
Page 1441 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 10 of 14
4. Reimbursement of a Portion of Development Expenses if the
Development Agreement is Terminated.
Per the Development Agreement, the Developer will earn a Development Fee
equal to 7% of hard costs, estimated at approximately $1,474,282. Up through
the date of Financial Closing (anticipated for Autumn 2021), Servitas anticipates
that it will expend approximately $1,368,100. The developer's Predevelopment
Schedule is attached as Exhibit D.
The City may terminate the development agreement for its own convenience at
any time prior to Historic Preservation Board (HPB) approval (Spring/Summer
2021). Given the unique aspects of the proposed transactions — namely that all
of the net proceeds of the Project throughout the entire term will be paid to the
City as rent under the Lease -- the Development Agreement provides for a
"shared" allocation of risk, with the City to be responsible for reimbursement of
certain Project expenses if the Development Agreement is terminated prior to
Financial Closing. Specifically, the Development Agreement provides:
(i) Prior to HPB approval, in the event the Project cannot proceed due
to unforeseeable conditions, the City would be responsible for(1)all Pre-
Closing expenses incurred and (2)a portion of the Development Fee that
would have been earned as of the date of termination, up to an aggregate
total amount not to exceed$500,000, plus Environmental Costs for which
the City is responsible, if any.
(ii) After HPB approval but prior to Financial Closing, in the event the
Project cannot proceed due to specified unforeseeable conditions, the
City would not be responsible for any portion of the Development Fee,
but would be responsible for a portion of the Developer's Pre-Closing
expenses, up to an amount not to exceed $800,000, plus the City's
Environmental Costs, if any.
Historically, the City has not agreed to reimburse a developer for its
development costs. However, none of the prior development agreements the
City entered into were structured to provide the City with all of the net revenues
of the Project, and accordingly, all of the potential upside, for the entire term of
the lease.
In September 2020, the Finance Committee recognized the need for a shared
allocation of risk in view of the benefits to the City and directed the
Administration to negotiate a limitation on the City's exposure. The above
monetary caps represent the negotiated compromise between the parties, as
the initial proposal contemplated that the City would be responsible for
expenses of up to $1.3 million, significantly higher than currently proposed.
Page 10 of 14
Page 1442 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 11 of 14
5. Request for "GU" Waivers to address Minimum Unit Size for the
Studio Units and Required Parking.
The Property is currently in a Government Use (GU) zoning district. In
accordance with the requirements of Section 142-425(e) of the City Code, the
Development Agreement contemplates that the City Commission would
approve the waiver of certain development regulations, specifically: (1)
"required minimum unit size" for the studio units (387 sq. ft. per studio unit,
rather than the required 400 sq. ft. per unit, if necessary to accommodate the
project) and (2) "required off-street parking" for the project (58 spaces). Note:
the Developer has agreed that no more than % of the studio units (10 out of a
total of 40 studios)would be constructed just below the required minimum size.
As currently proposed, even fewer of the studios will not contain the minimum
required unit size.
Under the City Code, to be eligible for a GU waiver, a property must be either
(1) governmental owned or leased, and wholly used by, open, and accessible
to the general public, or (2) used by not-for-profit, educational, or cultural
organizations. As proposed, the project would qualify for a GU waiver.
Considering that the Project evolved out of the City's initiative to redevelop
parking assets into mixed-use housing and parking facilities, The Concourse
Group originally intended that the housing component's off-street parking
requirement would be satisfied in the adjacent garage facility. Accordingly, the
Ground Lease requires that an amount of parking spaces equal to the Project's
off-street requirement (58 spaces) will be made available to tenants at the
adjacent parking garage (on an as requested basis through the Ground
Lessee). Given the foregoing, the Administration supports the waivers. Both the
Finance Committee and Planning Board favorably recommended that the City
Commission grant them.
6. Waterfall List of Eligible Workforce Housing Residents, in the Event
of Insufficient Demand from Artists and Educators
At the recommendation of The Concourse Group study, the City Commission
directed that the ITN cater to employees of artistic institutions and area
educators employed in the City of Miami Beach. (The study recommended
broad, inclusive definitions to qualify workers from either industry, e.g.
administrators and support staff in nonprofit institutions). These liberally
construed definitions for "Artists" and "Area Educators" are provided in the
Lease and Development Agreement. Following direction by the City
Commission, early childhood educators are specifically included in the definition
of teachers.
In order that the units not remain vacant, and to ensure that the Project is
financeable and has the ability to generate stable rental income streams to meet
Page 11 of 14
Page 1443 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 12 of 14
debt service obligations, Servitas has requested that, following a specified
period of sixty (60) days of marketing solely to artists and area educators, the
Project be permitted to lease the individual units to other persons meeting the
workforce housing income criteria. Per City Code, prior to leasing, the building's
property manager must provide the City with a marketing plan and offering
notice and comply with annual requirements for tenant roster verification by the
Housing department.
The Lease contemplates implementation of a lottery system to select tenants
from an eligible pool and the following incorporates the City Commission's input
on First Reading for a proposed "waterfall" list to prioritize eligible residents:
(1)Tier 1 — artists practicing in Miami-Dade County; City of Miami Beach
employees (including City of Miami Beach law enforcement personnel
and firefighters); Area Educators and nurses employed within the City of
Miami Beach; and veterans who are either employed within the City of
Miami Beach or whose current place of residence is within the City of
Miami Beach
(2) Tier 2— Income-eligible workers employed in the City of Miami Beach in
the hospitality and entertainment industries; and
(3) Tier 3—Any other income-eligible workers employed within Miami-Dade
County, with priority for income-eligible workers employed within the City
of Miami Beach.
Land Appraisal
Section 82-39(b) of the City Code requires an independent appraisal of the fair
market or rental value when the City considers any lease of its property for more
than 10 years. The attached Appraisal of Real Property prepared by Cushman
& Wakefield (the "Appraisal Report") provides four value conclusions:
1. Current as-is market value of the land (City's fee simple interest) is $6.9
million.
2. Current market value of the land with the Ground Lease in effect is $18
million.
3. Upon Project completion (anticipated 2023), the leasehold will be valued
at$20.2 million.
4. Upon Project stabilization(anticipated 2024), the leasehold will be valued
at $22.7 million.
The foregoing value conclusions demonstrate that the proposed project will add
considerable value to the City's asset at little cost to the City. The appraiser's
analysis of the market determined that the property is in a desirable residential
area where demand for rental product at similar price points has been growing
and is forecasted to remain strong in the near term. Importantly, the Appraisal
Report suggests that the project is economically feasible and will be self-
sustaining. Except as to the appraiser's conservative view of the first few years,
Page 12 of 14
Page 1444 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 13 of 14
once the project stabilizes, it will generate considerable net income, all of which
would inure to the benefit of the City, sufficient to support the project, the Miami
City Ballet, and the City's cultural activation goals for the ground floor.
It is also worth noting that this is a challenging transaction for any appraiser to
evaluate, because of lack of clear comparables for tax exempt workforce
housing/cultural projects like this, which are essentially governmental and non-
profit in character.
Prior Review of Project at Public Hearings
On September 23, 2020, the Finance Committee reviewed the Developer's
proposed terms and unanimously recommended that the Administration
proceed with the proposed Project. On October 18, 2020, the Mayor and City
Commission accepted the Finance Committee's recommendation and referred
the Project for review by the Planning Board. Pursuant to Section 1.03(b)(4) of
the City Charter governing leases of ten years or longer of City-owned property,
the Lease requires approval by a majority 4/7 vote of all members of the
Planning Board, and a 6/7 vote of the City Commission.
On November 17, 2020, the Planning Board unanimously approved the
proposed Lease pursuant to the requirements of Section 1.03(b)(4) of the City
Charter, and voted to transmit the Development Agreement to the City
Commission with a favorable recommendation, in accordance with the City's
Land Development Regulations.
On December 9, 2020, the Mayor and City Commission unanimously approved
on first reading the Development Agreement and Lease. From the dais, the City
Commission directed the Administration to incorporate modifications to the
waterfall structure for tenant leasing, including inclusion of veteran preference,
all of which is detailed in the preceding section.
The following documents are attached to this Memorandum:
Exhibit A—Development Agreement
Exhibit B—Ground Lease
Exhibit C—Pro Forma
Exhibit D —Predevelopment Schedule
Exhibit E—Planning Analysis
Exhibit F —Appraisal Report
FISCAL IMPACT STATEMENT
Any Project costs advanced or funded by the City will be reimbursed to the City
either at Financial Closing, or from the Project's net revenues, prior to any
distribution of net revenues to any other party. To the extent the revenues of
the Property generate surplus revenues (after payment of all operating
expenses, maintenance reserves, and debt service reserves), such revenues
Page 13 of 14
Page 1445 of 1954
Commission Memorandum
Collins Park Workforce Housing
January 13, 2021—Second Reading
Page 14 of 14
would solely inure for the benefit of the City or any other not-for-profit entity
designated by the City.
CONCLUSION
Following review and consideration of the Development Agreement and Ground
Lease, the Administration recommends that the Mayor and City Commission
adopt the resolutions approving the GU waivers and execution of the
agreements.
Page 14 of 14
Page 1446 of 1954
•
26NE 1 1 NEIGHBORS I MIIAMHERAt0.COM 212020
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CITY OF MIAMI BEACH
CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS
NOTICE OF PUBLIC HEARING JANUARY 13, 2021 CITY COMMISSION MEETING
JANUARY 13, 2021 CITY COMMISSION MEETING On January 13,2021.the Clry of Miami Beam will nest a Hybrid Commission Meeting.During the Hybrid
On January 13, 2021,the City of Miami Beach will hoot a Hybrid Commission Meeting.During Commission Meeting.a quorum of the City Comndsslen w0 be physiealIY present In a socially distanced manner at
the Convent/on Center,while statt,applicants,end the public attend the,eecarg vhNally.This Meering Is being held as
the Hybrid Commission Meeting,a Quorum of the City Commission will be physically present In a a Hybrid Meeting,In compliance with Resolution No.2020-31474,to comply with eaelal distancing recommendations
socially distanced manner at the Convention Center,white staff,applicants,and the public attend the Intended to protect the fife and safely at IndMdual5 In the community during the CoronaulmslCOVlD-19 pandemic.
meeting virtually.Thle Meeting is being held as a Hybrid Meeting,in compliance with Resolution NO. Members of the public may comment on any Item on the agenda using the Zoon platform.To participate
2020-31474,to comply with social distancing recommendations intended to protect the life and safety or provide comments virtually,the public may loin the City Commission Meeting at hhps-!/mlamibeachnuw.
ar ID:
of Individuals in the community during the Coronavirus/COVID-19 pandemic. 89109475890e.gMembers of the47S6S0 en via public to speae at k on9en hem9 during the meeting.are 99 11regWred to click k the
Members of the public may comment on any item on the agenda using the Zoom platform.To 'raise hand'Icon it using the Zoom app or press'9 on Me telephme to raise their hand.Members of the public who
participate or provide comments virtually,the public may join the City Commission Meeting at hops:// do not have access to a computer and wish to provide public comment al the Commission meeting,may appear
miamibeachll-gov.zoom.us/7/69109475690 Sr via telephone at:1.929.205.6099(U.S.)or 888.475.4499 Room 23237sMiami Be reech,ami FL ach 33139.At mitt locationConvention ,(members of the 901 ublic will be pprovidednaccesAvenue
b aucomputeaer to
(Toil Free).Webinar ID:891094758909.Members of the public wanting to speak on an Item during the provide public comment(only In audio tam)on agenda 11em(sl.
meeting,are required to click the'raise hand"icon if using the Zoom app or press a9 on the telephone NOTICE IS HEREBY GIVEN that Me following Poblle Helring9 w61be heardby the Mayor and City Commissioners
to raise their hand.Members of the public who do not have access to a computer and wish to provide of the City of Miami Beam,Florida,on January 13,2021 at the times Bated below oras anon thereafter as the matter
public comment at the Commission meeting,may appear in-person at the Miami Beach Convention can be heard:
Center,1901 Convention Center Drive,Washington Avenue Entrance,Room 237,Miami Beach,FL 11:01 a.m.Second Reeding Public l4 ig
33139.At this location,members of the public will be provided access to a computer to provide public ARESOLUTION OF THE MAYOR AND CITY COMMISSION OF THEORY OF MIAMI BEACH.FLORIDA,APPROVING.
FOLLOWING SECOND READING,A LEASE AGREEMENT CLEASEl.AS AUTHORIZED UNDER SECTION 82-37
comment(only in audio toren)on agenda item(s). OF THE CITY CODE AND SECTION 1.031BtIa1 OF THE CITY CHARTER,BETWEEN THE CRY OF MIAMI BEACH
NOTICE IS HEREBY GIVEN that the following Public Hearing will be heard by the Mayor and City ('CITY)AND COMMUNITY FINANCE CORPORATION,AN ARIZONA NOTTFORPROFIT CORPORATION,OR AN
Commissioners of the City of Miami Beach,Florida,on January 13,2021 Al the time listed below or as AFFIUATE THEREOF('LESSEE'),OF THE CITY-0WNEO PROPERTY LOCATED AT 224 2300 STREET RHE
PROPERTYI,FOR THE CONSTRUCTION OF THE COLUNS PARK ARTIST WORKFORCE HOUSING PROJECT ON
soon thereafter as the matter can be heard: THE PROPERTY.A PROPOSED DEVELOPMENT WHICH SHALL INCLUDE(1)UP TO EIGHTY(80)RESIDENTIAL
2:35 0.m.Public Heartrty WORKFORCE HOUSING UNITS,FOR ARTISTS,TEACHERS,AND OTHER INCOMEEUGIBLE TENANTS;(2)
AT LEAST ONE RESIDENTIAL DORMITORY FLOOR,INTENDED FOR USE BY MIAMI CITY BALLET,INC.(THE
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA. 'BALLET").TO SUPPORT THE BALLET'S DANCE EDUCATION AND OTHER PROGRAMS OR,IF AGREEMENT WITH
FOLLOWING A DULY ADVERTISED PUBLIC HEARING,ACCEPTING THE RECOMMENDATION OF THE BALLET CANNOT BE REACHED.UP TO SIXTEEN(16)ADOmONAL WORKFORCE HOUSING UNITS;AND(3I
THE CITY'S FINANCE AND ECONOMIC RESILIENCY COMMITTEE AND OF THE CITY MANAGER, GROUND FLOOR RETAIL OR CULTURAL SPACE(COLLECTIVELY,THE'PROJECT');FURTHER,PROVIDING FOR
AND WAIVING,BY 517TH VOTE,THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION THE PROJECT TO BE DEVELOPED.DESIGNED.FINANCED.CONSTRUCTED.AND OPERATED IN ACCORDANCE
WITH DE TERMS OF THE LEASE AND THE DEVELOPMENT AGREEMENT BETWEEN THE CITY AND SERVITAS,
82.09(A)OF THE CITY CODE,FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; LLC FOR THE PROJECT,APPROVED PURSUANT TO RESOLUTION NO.2020-31435;FURTHER,PROVIDING FOR
AND APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A NEW LEASE AN INITIAL TERM OF FIFTY(SO)YEARS.WITH TWO(2)RENEWAL TERMS,FOR A PERIOD OF TWENTY(20)
AGREEMENT BETWEEN THE CITY(LANDLORD)WITH MIAMI BEACH WATERSPORTS CENTER,INC. YEARS EACH.ON MUTUAL AGREEMENT OF CITY AND LESSEE This Resolution In being heard pursuant In Section
(TENANT)FOR A PERIOD OF NINE(9)YEARS,FOR THE USE OF CITY OWNED PROPERTY LOCATED166.04-F.S.Inquiries may be directed tome Economic Development Department at 395.6)3.)572.
AT 6500 INDIAN CREEK DR A/K/A THE RONALD W.SHANE WATERSPORTS CENTER,CONTAINING A Z10 p.m.Public Nearing
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CRY OF MIAMI BEACH,FLORIDA,ADOPTING
A TWO STORY BUILDING AND A BOAT HOUSE,FOR THE OPERATION OF A ROWING CENTER, THE SECOND AMENDMENT TO THE GENERAL FUND,ENTERPRISE FUNDS,INTERNAL SERVICE FUNDS,AND
This Resolution is being heard pursuant to 5166.041 F.S.Inquiries may be directed to the Property SPECIAL REVENUE FUNDS BUDGETS FOR FISCAL YEAR 2021 AS SET FORTH IN THIS RESOLUTION AND IN
Management Department at 305.673.7631. THE ATTACHED EXHIBIT'A.This Resolution A being heard pursuant to 55166 041 and 166.241 F.S.InstaAiac may
be directed to the Olive o/Budget A Performance Improvement et 305.673.7574
INTERESTED PARTIES are invited to take part in this meeting or be represented by an agent.The
MS men.PuWls Hearing
public may submit written comments by sending an email to:CIIyCierke,mlamlbeachll.gov by 5:00 p.m. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH.FLORIDA,ADOPTING
the day before the City Commission Meeting.Please identify the Agenda Item Number In the email THE SECOND AMENDMENT TO THE CAPITAL BUDGET FOR FISCAL YEAR 2021 AS SET FORTH IN ATTACHMENTS
subject line.Entails received will be forwarded to the Mayor and Commissioners and will be Included A,-PROJECTS':B.'SOURCE OF FUNDS':ANO C.'PROGRAMS.'This Resolution is being heard pursuant to
as a part of the meeting record. 5166041 and§166.24-P.S.!notaries may be directed to the Ofece of Management and Budget as 305673.7510.
Copies of Agenda Items are available for public inspection at:htt s:f/www.mlamlbeaehll.ov/tilt INTERESTED PARTIES are invited to lake part In this meeting an be represented by an agent.The public may
9 p p g y- submit written comments by sending an email to:CilyCiamXmlamlboachll.gw by 5:00 pm.the day before tho City
hall/eity-clark/agenda-archive-main-page-2/.Thle meeting,or any Item therein,may be continued,and Commission Meeting.Please identity the Agenda Rem Number In Me small Subject line.Emacs received wit be
under such circumstances,additional legal notice need not be provided. (awarded la the Maya and Commissioners and will be Included as a part of the mooting ratted.
Pursuant to Section 286.0105,Fla.Stat.,the City hereby advises the public that it a person decides Copies of Agenda Items am available to Wbtic inspection at nlcps:IIwwwmlammeachl.gov/dtynal/dryclerld
to appeal any decision made lay the City Commission with respect to any matter considered al Its eoenda+afmtvNmaln�ape•2/_Thin meeting,or any Kern lhamin.mrybe continued.and under such circumstances.
additional legal malice need not be provided.meeting or its hearing,such person must ensure that a verbatim record of the proceedings Is made,
which record includes the testimony and evidence upon which the appeal is to be based.Thio notice Pursuant!o Secmade
ion the Cli 05.Fla.Bial.,cera City hereby advises the public Mat II a person derides to appeal
does not constitute consent by the City for the introduction or admission of otherwise inadmissible or ant' nelsonion made by ori Commission re wd respect n any matter oon abich a Ile meeting or e testimonysuch Me record
Irrelevant evidence,nor does It authorize challenges or appeals not otherwise allowed by law, and evidence upon which Me appeal is to be based.This notice does not constitute consent by the City for Me
Introduction or admission 01 otherwise inadmissible or Irrelevant evidence,nor does 0 authaizo challenges or
To request this material In alternate format,sign language Interpreter(Ilve-day notice required), appeals nal otherwise allowed by law.
information On access for persons with dtsabilniea,andlor any accommodation to review any document To request this material In anemale formal.sign language Interpreter(livoday notice required',Information on
or participate in any City-sponsored proceedings,call 305.804.2489 and select 1 lar English or 2 for capes for persons with dlsaoRlles,endlor any accommodation to review any document or participate In any Cty-
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Overse chennel 99,Hotwlre Communications channel 395,and ROKU device on PEG.TV channel,end on social
device on PEG.TV channel,and on social media at Mips:/lwww.iacebook.com/chyohniamtbeach. media al hops://w nefacebook,com/dtydmlamlbauh.
Rafael E.Granada,City Clerk Rafael E Granada,City Clerk
City of Miami Beach City of Miami Beam
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CilyClerkomiamlbeaehll.gov GryCtarktnr,i 306 3.7411
305.673,7411 Ad 01132021.00
Ad 01132021-09
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