099-1999 LTC
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
L.T.C. No. 99-1999
LETTER TO COMMISSION
May 4, 1999
TO: Mayor Neisen O. Kasdin and
Members of the City Co mission
FROM: Sergio Rodriguez
City Manager
SUBJECT: CULTURAL
Please find attached a memorandum from Assistant City Manager Christina Cuervo relative to the
status of proposals from Ron Bloomberg in relation to property owned by him in the Cultural
Campus that could be used for parking.
In the discussions with Mr. Bloomberg, Christina has explored three alternatives, of which
alternative #3 does not appear to be an option at this time. I have asked Christina to further explore
variations of alternative #2 that would explore the following:
1. Adding 1/2 to 1 additional floor below, thus producing a possible additional
100 parking spaces.
2. Converting 25,000 out of 50,000 sq. ft. of office space to parking --
thus adding 100 parking spaces.
3. Converting some, or all, of the retail to parking, thus adding up to 100
parking spaces.
In addition, I have asked Christina to look at other options for parking in several lots in the area that
could be used for this purpose.
SR:pw
Attachment
f: \cmgr\$all\sergio \parking. 5 04
CITY OF MIAMI BEACH
OFFICE OF THE CITY MANAGER
Interoffice Memorandum
m
To:
Sergio Rodriguez
City Manager
Christina M. Cuervo o1Y
Assistant City Manager
Date: April 30, 1999
From:
Subject: BLOOMBERG PROPOSAL TO CITY FOR CULTURAL CAMPUS PARKING
I met with Gerald K. Schwartz to review the proposals outlined in the April 27, 1999 correspondence
attached hereto.
Alternative 1:
The first alternative contemplates Bloomberg developing an office building behind the library.
Initially, this alternative is not viewed as desireable due to aesthetic and architectural
incompatibilities with the Cultural Campus project design. The design incompatibility should be
addressed by the Administration (Planning, Mayra Diaz-Buttacavoli, Cultural Campus Oversight
Committee, Stem) as an initial premise as to whether to even consider the Alternative 1 proposal.
Additional information to be provided by SchwartzIBloomberg in order to analyze the financial
impact of Alternative 1 is:
. City sale price to American of King parcel needs to be more equitable. Schwartz to provide
new sale price.
. Office square footage exceeds F.A.R. of the site so project needs to be redesigned (51,000
sq. ft. office building proposed vs. lot size of 17,250 sq. ft. @ 2.25 F.A.R. = maximum
38,812 sq. ft. office building).
. The number of spaces City may ultimately provide in the garage is estimated at
approximately 400, not 500 spaces.
. Need sale/lease price that American will pay for retail space on ground floor of garage.
. Loading area for library would need to be addressed and access provided through an
easement. Needs to allow adequate height for these vehicles.
Alternative 2:
The second alternative contemplates an office building being developed over the garage adjacent to
the Miami City Ballet facility.
There are concerns with this proposal due to height limitations in the district of 50 ft., permitting a
structure with a maximum of five floors. Therefore, conceivably, the project could consist of
approximately:
1 st Floor
2nd Floor
3rd Floor
4th Floor
5th Floor
20,000 sq. ft. retail
25,000 sq. ft. garage 100+ spaces
25,000 sq. ft. garage 100+ spaces
25,000 sq. ft. office
25,000 sq. ft. office
This would limit the number of spaces to approximately 200 spaces vs. 400 spaces as has been
originally proposed in the project concept. The 400-space garage was contemplated due to the
Cultural Campus and adjacent hotel needs and it is what the site could accommodate. A feasibility
study should really be performed as to whether a 400-space garage can be supported by projected
revenues and/or obtain contractual commitments from adjacent hotel users.
Additional information to be provided by SchwartzlBloomberg in order to analyze the financial
impact of this alternative is:
. The price for Chevron parcel sale to City to be established.
. The sale/lease price that American will pay for the retail and office space that City will build.
Alternative 3:
I asked Gerald Schwartz to pro fer a proposal to the City wherein there is no office building
constructed and simply a straight sale ofthe referenced sites is contemplated. He stated this was not
an option at this time.
RECOMMENDA nON:
Upon receipt of the additional financial information outlined above, I recommend we schedule an
Executive Session to discuss the eminent domain proceedings on the Ablon property vis-a-vis the
proposals contained herein.
While Alternative 2 may have some difficulties vis-a-vis the project components and project design,
I believe that there may be some opportunity to explore this option further. I believe an analysis
needs to be performed to assess the financial viability of a 400-space garage and whether the garage
operating costs and debt service can be supported from projected parking revenue. The mixed use
concept ofthe retail/office/garage is attractive in that it creates the necessary critical mass needed
to support the garage for both the office and cultural facilities during the day and for the public in
the evening.
Some Facts:
. King Parcel: 17,250 sq. ft. @ 2.25 F.A.R. = 38,812 max. building site
(This parcel size may be further reduced as a result of encroachments contemplated in the
library design and footprint)
. Chevron and Fruit Stand Parcel:
approximately 31,050 sq. ft. @2.25 F.A.R. = 69,862.5 sq. ft.
. Parking Requirements:
Library
Ballet
50,000 sq. ft. Office
Less:
Spaces Needed:
Garages Spaces:
81
76
125
282
27 Spaces provided on King Parcel
255
212 Potential spaces on 2 floors per Stem design
(43) Balance of un-met parking space requirements
CMC/jph
c: Mayra Diaz-Buttacavoli, Assistant City Manager
Janet Gavarrete, Assistant City Manager
Dean Grandin, Planning & Zoning Director
Marla Dumas, Redevelopment Coordinator
Robert Dixon, First Assistant City Attorney
F:ICMGRISALLICHRlSTINIRDAIBLOOMBER. WPD
BELOFF & SCHWARTZ
ATTOIU'.JEYS AT LAW
n IV' rl. nl1- tof q 9
j- (;~ if1J
GERALD K. SCHWARTZ, ESQ.
1688 MERIDIAN AVENUE
SUITE 610
ML\.MI BEACH, FLORIDA 33139
TELEPHONE (305) 673-1101
FACSIMILE (305) 673-5505
April 27, 1999
Ms. Christina Cuervo
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: Settlement Proposal between City of Miami Beach (the "City") and American Riviera Real
Estate Company ("American")
Dear Christina:
The following is our proposal to settle and resolve all issues between the City and American, including
the termination of all litigation. Our proposal is based upon property values, as set by our appraiser,
which we understand, may be different than the values in the City's appraisals. We believe we have
made adjustments to accommodate any such variation. While we have attempted to address all of the
issues, the City may find areas that we may have overlooked or that have not been addressed as
specifically as necessary. We are prepared to likewise address those areas and items.
It is our desire and intention to amicably resolve this matter with the City, and you have my
commitment that we will invest whatever time and effort may be necessary to accomplish that
objective.
We are suggesting two alternative proposals. The first, contemplates our construction of an office
building on the property presently owned by the City on 23rd Street (sometimes referred to as the
"King" property) and the construction by the City of a parking garage on the property presently owned
by American "sometimes referred to as the "McMahon" property". The second alternative includes
the construction of an office building above the parking garage on the McMahon property, instead of a
separate office building on the King property. Our proposals include the following general terms and
conditions:
Ms. Christina Cuervo
Assistant City Manager
City of Miami Beach
April 27, 1999
Page 2
1. Litigation
a. All litigation, eminent domain and otherwise is to be dismissed upon settlement.
II. 211 22nd Street (the "Ablon Property" or the "Library Parcel")
a. American will sell the Ablon Property to the City for $1,000,000 which is 1/3 less than
American's appraised value. Evidence of the appraised value will be provided.
b. City will sell or lease (long term) the property known as the King Property on 23rd
Street to American. (Approximately 17,250 sq. ft.) Sale price to be equal to City's
purchase price.
c. American will be permitted to build its previously approved office building of
approximately 51,000 sq. ft. subject to reasonable changes that may be appropriate
considering the new site. American will grant City all easements and rights necessary
to permit service and delivery to the library along with the right to approximately 25
parking spaces for library personnel. City may retain all revenue, if any from such
spaces.
d. Based on the parking spaces given to the City and the existence of a parking garage to
be constructed as per item III below, the City should waive any parking impact fees
applicable to the Office Building.
e. City will reimburse Palm Court at 23rd Street Ltd. $65,000.00 in parking impact fees
previously paid since parking spaces will be available in the Garage.
III. 340 23rd Street (the "McMahon Property" or the "Garage Property")
a. American will sell its interest (remaining balance of 99 year sub-lease) to the City for
$1,567,233.00 which is 1/3 less than American's appraised value. Evidence of the
appraisal will be provided. American will resolve all pending litigation pertaining to
the property.
b. City will build a parking structure on the Garage Property containing at least 500
parking spaces and at least 19,000 rentable square feet of retail space. (These figures are
based on our studies and plans that provide for no parking on the ground floor. All such
studies and plans to be subject to verification). The ground floor space to be used for
Ms. Christina Cuervo
Assistant City Manager
City of Miami Beach
April 27, 1999
Page 3
retail will be totally unfinished including a dirt floor. All finish work to the retail space
shall be the responsibility of American.
c. That portion of the rental space not built on the property included in the sale by
American will be sold or leased (long term) to American at fair market value based on
comparable City leasing arrangements.
d. City to provide American with sufficient parking spaces as may be required for the
retail space and will rent up to 50 parking spaces to Palm Court.
This would be the easier of the two plans since the existing office building plans have already been
reviewed and approved by all required city boards. We believe the office building can be built in a
manner compatible with the proposed library structure even if some aesthetic modifications had to be
made to the existing plans.
IV. Alternative Plan for the Garage Property
a. This plan eliminates the construction of an office building on the King Property and
instead provides for a combination office building and garage to be constructed on the
Garage Property and the adjoining property on the SW comer of 23rd Street and Liberty
A venue and referred to herein as the "Pruitstand Property".
b. American will sell the Ablon Property to the City for American's appraised value.
c. The City will sell the Pruitstand Property to American for fair market value. American
will then construct the parking garage contemplated in III above and would also
construct a two story office building above the garage. The garage would be operated
by the City and either leased (long term) to or owned (condominium) by the City.
Because of the ability of the City to obtain low cost financing it may be a better
alternative if the city owned and built the structure and sold or leased the office building
and the retail space to American.
d. As in III above, the City would provide parking for the retail space, the office building
and the Palm Court property.
This alternative would be more difficult to accomplish than the first alternative. It would require a new
and more complex design as well as having to deal with possible City height limitations. It would also
require a more complicated ownership arrangement and would take more time to accomplish because
of the requirement for new plans and the time and additional cost attributable to that.
Ms. Christina Cuervo
Assistant City Manager
City of Miami Beach
April 27, 1999
Page 4
We are happy to discuss both proposals and proceed with either plan acceptable to the City. It may be
expeditious to discuss and proceed with both plans giving the Commission an alternative.
Although it would not be a condition of the negotiations, we would also like to discuss the operation of
the Parking Garage.
This letter is submitted in the interest of settlement of all legal proceedings between the parties and the
principals of the parties. No figures or statements contained herein are intended or shall be used as an
admission of value or otherwise.
As soon as possible, I would like to discuss the terms of this letter with you. I think that it is important
that we first agree on a plan for the properties before dealing with the financial issues. Once again, I
am very confident we can make this work.
Thank you, as always, for your assistance.
Very truly yours,
/
/
I
GKS/me
cc: Robert Dixon, Assistant City Attorney
American Riviera Real Estate Company