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Resolution 2021-31723 RESOLUTION NO 2021-31723 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, ON SECOND READING/PUBLIC HEARING OF THIS RESOLUTION, THE VACATION OF THAT PORTION OF THE SOUTHERN HALF OF 21ST STREET, GENERALLY LOCATED BETWEEN APPROXIMATELY 150 FEET EAST OF COLLINS AVENUE AND MIAMI BEACH DRIVE, AND CONSISTING OF APPROXIMATELY 6,736 SQUARE FEET IN TOTAL AREA, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION (THE "ROW"), IN FAVOR OF THE ABUTTING PROPERTY OWNER, BHI LIMITED MIAMI CORPORATION (THE "APPLICANT"); FURTHER, PROVIDING THAT THE VACATION OF THE CITY ROW SHALL BE SUBJECT TO AND CONDITIONED UPON THE APPLICANT'S DELIVERY OF CERTAIN PUBLIC BENEFITS TO THE CITY, INCLUDING A PAYMENT IN THE AMOUNT OF $7,400,000.00, A MAINTENANCE AGREEMENT PROVIDING FOR THE INSTALLATION AND PERPETUAL MAINTENANCE OF ADDITIONAL LANDSCAPING WITHIN THE CITY'S BEACH ACCESS AND BEACHWALK AREA EAST OF MIAMI BEACH DRIVE AS MORE PARTICULARLY DEPICTED ON EXHIBIT "E" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION, AND A PERPETUAL EASEMENT IN FAVOR OF THE CITY OVER THE ROW, TO ENSURE CONTINUED PUBLIC USE OF THE ROW FOR CITY ACCESS, PEDESTRIAN AND VEHICULAR TRAVEL, AND UTILITIES; AND WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT, PURSUANT TO SECTION 82-38 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A VACATION AGREEMENT, A COPY OF WHICH IS ATTACHED, IN SUBSTANTIAL FORM, AS EXHIBIT "F" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION. WHEREAS, the City holds a right-of-way dedication to the portion of the southern twenty- five (25)feet of 21 Street located approximately 150 feet east of Collins Avenue and running east for approximately 269.43 feet, consisting of approximately 6,736.28 square feet, and more particularly described in Exhibit "A" to the Memorandum accompanying this Resolution (the "ROW"); and WHEREAS, BHI Miami Limited Corp. (the "Applicant") owns the property abutting the ROW located at 100 21 Street and identified by tax folio number 02-3226-001-0040 (the "Property"), more particularly described in Exhibit "B" to the Memorandum accompanying this Resolution; and WHEREAS, Applicant's Property, currently known as the Seagull Hotel, consists of an 8- story structure constructed in 1950, and designed by architect Albert Anis; and WHEREAS, the Applicant is proposing a major renovation of the existing structure in order to accommodate a new high-end luxury hotel operator, Bulgari Hotels & Resorts (the "Proposed Development"); and WHEREAS, in conjunction with Proposed Development, the Applicant is requesting that the City vacate the ROW, and submitted its application to the City's Public Works Department with respect thereto; and WHEREAS, in accordance with Article II, Sections 82-36 through 82-40, of the City Code, prior to approving a request for vacation, the following requirements must be satisfied: (1) the title of the Resolution approving the proposed vacation shall be heard by the City Commission on two separate meeting dates, with the second reading to be accompanied by a duly noticed public hearing; (2) the proposed vacation shall be transmitted to the Finance and Economic Resiliency Committee ("FERC")for its review; (3) the City's Planning Department shall prepare a written planning analysis, to be submitted to the City Commission concurrent with its consideration of the proposed vacation; and (4) the City shall obtain an independent appraisal of the fair market value of the property proposed to be vacated; and WHEREAS, the Applicant is proposing that the Proposed Development be developed as a unified development site, and the ROW and the Applicant's Property would be joined via a unity of title or covenant in lieu of unity of title following the effective date of the vacation, to permit Applicant to utilize the floor area associated with the ROW within the Proposed Development; and WHEREAS, the Public Works Department obtained an appraisal for the market value of the ROW on January 13, 2021, which appraisal is attached as Exhibit "D" to the Memorandum accompanying this Resolution, and valued the ROW at $7,400,000; and WHEREAS, the Applicant obtained an appraisal for the market value of the ROW, which appraisal is attached as Exhibit "C" to the Memorandum accompanying this Resolution, and valued the ROW at $5,000,000; and WHEREAS, at the January 22, 2021 FERC meeting, the Applicant accepted the City's higher appraisal value for the ROW at $7,400,000, and the FERC recommended in favor of the proposed vacation of the ROW, with the vacation of the ROW subject to and conditioned upon the Applicant's delivery of certain public benefits to the City: (1) the Applicant's payment of $7,400,000 to the City, and (2) the Applicant providing the City with a perpetual easement over the ROW to ensure continued public use of the ROW for City access, public pedestrian and vehicular travel, and the installation and maintenance of utilities; and WHEREAS, the Applicant has further agreed to the installation and perpetual maintenance, at Applicant's sole cost and expense, of additional landscaping adjacent to the Applicant's Property within the City's Beach Access and Beachwalk area depicted in Exhibit "E" to the Memorandum accompanying this Resolution, to be memorialized in a recorded Maintenance Agreement; and WHEREAS, on February 10, 2021, the Mayor and City Commission approved the vacation of the ROW on first reading, setting a date for the second reading/public hearing for the vacation of the ROW; and WHEREAS, on April 27, 2021, following a presentation by the Applicant, the Planning Board approved the vacation of the ROW as required pursuant to Section 1.03(b)(4) of the City Charter; and 2 WHEREAS, the Planning Department analysis of the vacation, in accordance with Section 82-38 of the City Code, is attached as Exhibit "G" to the Memorandum accompanying this Resolution; and WHEREAS, Section 82-39(a) of the City Code provides that the lease or sale of public property requires an advertised public bidding process, which requirement may be waived by5/7`, vote of the City Commission; and WHEREAS, by operation of law, once the City vacates the ROW, the underlying fee interest in the ROW vests with the current abutting property owner; and WHEREAS, as the only party entitled to the vacated ROW is the Applicant(as the abutting property owner and holder of the appropriate reversionary interests), the City Administration recommends that the Mayor and City Commission waive the competitive bidding requirement, finding that the public interest is served by waiving such condition; and WHEREAS, as explained more fully in the Commission Memorandum accompanying this Resolution, incorporated by reference herein, the proposed vacation requires approval pursuant to Section 1.03 (b)(4) of the City Charter, which requires approval by a majority vote of the Planning Board and a 6/7ths vote of the City Commission; and WHEREAS, subject to the foregoing approval requirements of the City Charter and City Code, the City Commission has the discretion to approve the vacation if the City Commission finds that the vacation meets the criteria established in Section 82-38 of the City Code and the public benefit proffered is compelling; and WHEREAS, the vacation of the ROW shall be subject to and conditioned upon the Applicant and City executing a Vacation Agreement, a copy of which is attached, in substantial form, as Exhibit"F" to the Commission Memorandum accompanying this Resolution, that includes the following terms and conditions: (1) In consideration of the vacation, Applicant shall pay the City$7,400,000 as part of its public benefit package, with the schedule of payments discussed below. (2) The vacation agreement will provide for the City to convey the ROW to the Applicant at an agreed-upon closing date (prior to the issuance of the building permit for the Proposed Development). As permitted under Section 1.03(c) of the City Charter (discussed more fully below) and Section 118-5 of the City Code, the Applicant, upon obtaining fee ownership of the ROW, would join the ROW and the Applicant's Property via a unity of title and create a unified development site, thereby permitting the aggregation of floor area ("FAR") across the unified abutting parcels. (3) As a condition of the proposed vacation, the Applicant would grant a perpetual, non-revocable easement in favor of the City, for the City's continued use of the ROW for vehicular, pedestrian and utility purposes, so that the public's use of 21st Street would not be altered or diminished in any way. 3 (4) Applicant and the City shall enter into a Maintenance Agreement providing for installation (prior to the issuance of a Certificate of Occupancy) and perpetual maintenance of additional landscaping at the Applicant's sole cost in the portion of the City's Beach Access and Beachwalk area as depicted in Exhibit "E" to the Commission Memorandum accompanying this Resolution, which area is directly to the east of the ROW, and directly to the east of Applicant's Property (defined below as the "Proposed Maintenance Area"). (5) Applicant shall pay all of the City's costs in connection with the proposed vacation of the ROW, including any City closing costs, recording fees, or outside legal fees that may be incurred by the City. (6) Applicant agrees that City's quit claim deed for the ROW shall contain a reverter clause, to provide for the ROW to revert back to the City in the event Applicant fails to satisfy all conditions of the Vacation Resolution and Vacation Agreement prior to the completion of the Proposed Development (except the installation and maintenance of the landscape improvements depicted in Exhibit "E," which shall be governed by the Maintenance Agreement), and with such reverter being without prejudice to any other rights or remedies that may be available to the City in the event the Applicant fails to satisfy the conditions of the Vacation Resolution/Vacation Agreement. (7) Applicant agrees that City shall not issue a Temporary Certificate of Occupancy or final Certificate of Occupancy(whichever comes first)for the Proposed Development until the Applicant has satisfied all conditions of the Vacation Resolution and the Vacation Agreement; and WHEREAS, in the event the foregoing conditions of the Vacation Resolution or Vacation Agreement are not met, following notice to Applicant and a reasonable opportunity to cure, the Vacation Agreement shall be subject to termination, and in the event of any such termination, this Vacation Resolution shall be null and void; and WHEREAS, the Applicant has proposed that the public benefit cash payment to the City in the amount of $7,400,000 would be provided in installment payments, namely: (1) the Applicant shall make the first payment to the City, in the amount of $750,000, within thirty (30) days following the Historic Preservation Board approval for the Proposed Development becoming final and non-appealable (the "First Installment"). The First Installment shall be refundable until the vacation of the ROW is effective pursuant to the terms of the Vacation Agreement; and (2) the Applicant shall make the second payment, in the amount of $3,325,000, prior to the issuance of a building permit for the Proposed Development (the "Second Installment"). The vacation of the ROW shall be effective as of the date the Owner makes the Second Installment. Upon the Owner's payment of the Second Installment, both the First Installment and Second Installment be non-refundable; and 4 (3) the Applicant shall make the third payment, in the amount of $3,325,000, prior to the issuance of a temporary certificate of occupancy allowing public occupancy (the "TCO") or certificate of occupancy (the "CO"), whichever comes first, for the Proposed Development(the "Final Installment"). Further, the Applicant agrees that the City shall not issue the TCO or CO for the Proposed Development until the Final Installment Payment is made. The Final Installment shall be non-refundable; and WHEREAS, for the reasons as set forth more fully in the Commission Memorandum accompanying this Resolution, the Administration recommends approval of the vacation at second reading/public hearing, subject to the terms and conditions contained in this Resolution and the Vacation Agreement. 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, on Second Reading/Public Hearing of this Resolution, the vacation of that portion of the southern half of 21 Street, generally located between approximately 150 feet east of Collins Avenue and Miami Beach Drive, and consisting of approximately 6,736.28 square feet in total area, as more particularly describe in Exhibit "A" to the Memorandum accompanying this Resolution (the "ROW"), in favor of the abutting property owner, BHI Limited Miami Corporation (the "Applicant"); further, providing that the vacation of the City ROW shall be subject to and conditioned upon the Applicant's delivery of certain public benefits to the City, including a voluntary monetary payment in the amount of$7,400,000, a maintenance agreement providing for the installation and perpetual maintenance of additional landscaping within the City's beach access and beachwalk area east of Miami beach Drive as more particularly depicted on Exhibit"E" to the memorandum accompanying this Resolution, and a perpetual easement in favor of the City over the ROW, to ensure continued public use of the ROW for City access, pedestrian and vehicular travel, and utilities; further, waiving, by 5/7ths vote, the competitive bidding requirement, pursuant to Section 82-38 of the City Code, finding such waiver to be in the best interest of the City; and further, authorizing the Mayor and City Clerk to execute a Vacation Agreement, a copy of which is attached, in substantial form, as Exhibit "F" to the Memorandum accompanying this Resolution. /7)26_117____, /y� PASSED and ADOPTED this a6 day of r/`a , 2021. ATTEST: Dan Gelber, Mayor APPROVED AS TO - FORM& LANGUAGE & FOR EXECUTION Rafa,' G. anado, City I- k =�"^►'g ....... ani ok IINCCRP ORATED!! 2., cy,,2 5 Resolutions - R7 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Rafael A. Paz, Acting City Attorney DATE: May 26, 2021 5:03 p.m. Second Reading Public Hearing SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, ON SECOND READING/PUBLIC HEARING OF THIS RESOLUTION, THE VACATION OF THAT PORTION OF THE SOUTHERN HALF OF 21ST STREET, GENERALLY LOCATED BETWEEN APPROXIMATELY 150 FEET EAST OF COLLINS AVENUE AND MIAMI BEACH DRIVE, AND CONSISTING OF APPROXIMATELY 6,736 SQUARE FEET IN TOTAL AREA, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION (THE "ROW"), IN FAVOR OF THE ABUTTING PROPERTY OWNER, BHI LIMITED MIAMI CORPORATION (THE "APPLICANT"); FURTHER, PROVIDING THAT THE VACATION OF THE CITY ROW SHALL BE SUBJECT TO AND CONDITIONED UPON THE APPLICANT'S DELIVERY OF CERTAIN PUBLIC BENEFITS TO THE CITY, INCLUDING A PAYMENT IN THE AMOUNT OF $7,400,000.00, A MAINTENANCE AGREEMENT PROVIDING FOR THE INSTALLATION AND PERPETUAL MAINTENANCE OF ADDITIONAL LANDSCAPING WITHIN THE CITY'S BEACH ACCESS AND BEACHWALK AREA EAST OF MIAMI BEACH DRIVE AS MORE PARTICULARLY DEPICTED ON EXHIBIT "E" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION, AND A PERPETUAL EASEMENT IN FAVOR OF THE CITY OVER THE ROW, TO ENSURE CONTINUED PUBLIC USE OF THE ROW FOR CITY ACCESS, PEDESTRIAN AND VEHICULAR TRAVEL, AND UTILITIES; AND WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENT, PURSUANT TO SECTION 82-38 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A VACATION AGREEMENT, A COPY OF WHICH IS ATTACHED, IN SUBSTANTIAL FORM, AS EXHIBIT °F" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION. RECOMMENDATION See attached Commission Memorandum. Page 46 of 358 SUPPORTING SURVEY DATA Attached. FINANCIAL INFORMATION The transaction, if approved would generate revenue to the City in the amount of $7.4 million dollars. 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 Legislative Tracking Office of the City Attorney Sponsor Commissioner Ricky Arriola ATTACHMENTS: Description ❑ Commission Memorandum ❑ Exhibit A- Roadway Segment Legal ❑ Exhibit B - 100 21 Street Legal ❑ Exhibit C - Owner Appraisal ❑ Exhibit D - City Appraisal ❑ Exhibit E - Beachwalk Improvements ❑ Exhibit F - Draft Vacation Agreement ❑ Exhibit G - Planning Analysis ❑ Exhibit H - Easement Agreement ❑ Resolution ❑ Ad Page 47 of 358 v \ H‘-\ i\ini BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.miomibeochfl.gov COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: May 26, 2021 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, ON SECOND READING/PUBLIC HEARING OF THIS RESOLUTION, THE VACATION OF THAT PORTION OF THE SOUTHERN HALF OF 21ST STREET, GENERALLY LOCATED BETWEEN APPROXIMATELY 150 FEET EAST OF COLLINS AVENUE AND MIAMI BEACH DRIVE, AND CONSISTING OF APPROXIMATELY 6,736 SQUARE FEET IN TOTAL AREA, AS MORE PARTICULARLY DESCRIBED IN EXHIBIT "A" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION (THE "ROW"), IN FAVOR OF THE ABUTTING PROPERTY OWNER, BHI LIMITED MIAMI CORPORATION (THE "APPLICANT"); FURTHER, PROVIDING THAT THE VACATION OF THE CITY ROW SHALL BE SUBJECT TO AND CONDITIONED UPON THE APPLICANT'S DELIVERY OF CERTAIN PUBLIC BENEFITS TO THE CITY, INCLUDING A PAYMENT IN THE AMOUNT OF $7,400,000.00, A MAINTENANCE AGREEMENT PROVIDING FOR THE INSTALLATION AND PERPETUAL MAINTENANCE OF ADDITIONAL LANDSCAPING WITHIN THE CITY'S BEACH ACCESS AND BEACHWALK AREA EAST OF MIAMI BEACH DRIVE AS MORE PARTICULARLY DEPICTED ON EXHIBIT "E" TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION, AND A PERPETUAL EASEMENT IN FAVOR OF THE CITY OVER THE ROW, TO ENSURE CONTINUED PUBLIC USE OF THE ROW FOR CITY ACCESS, PEDESTRIAN AND VEHICULAR TRAVEL, AND UTILITIES; AND WAIVING, BY 5/7THS VOTE, THE COMPETITIVE BIDDING REQUIREMENT, PURSUANT TO SECTION 82-38 OF THE CITY CODE, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A VACATION AGREEMENT, A COPY OF WHICH IS ATTACHED, IN SUBSTANTIAL FORM, AS EXHIBIT "F" TO THE COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION. RECOMMENDATION The Administration recommends approval of the vacation of the ROW at Second Reading/Public Hearing on May 26, 2021, subject to the terms and conditions contained herein. Page 48 of 358 Commission Memo May 26, 2021 Page 2 BACKGROUND AND SUMMARY OF TERMS BHI Limited Miami Corporation (the"Owner" or"Applicant"), is the owner of the Seagull hotel site, located at 100 21st Street, Miami Beach, Florida (the "Property"). The Property is located on the south side of 21st Street, consisting of an 8-story structure, under Folio No. 02-3226-001-0040, as more particularly described in Exhibit"B". The Seagull hotel was constructed in 1950, and was designed by Miami Beach architect Albert Anis. The Property consists of Lots 1, 3, and 5 of Block A of the Amended Map of the Ocean Front Property of the Miami Beach Improvement Company Subdivision recorded in Plat Book 5, Page 7 of the Public Records of Miami-Dade County. As platted, the Property fronts the south side of 21st Street(identified in the plat as Park Avenue). At its November 18, 2020 meeting, the City Commission approved a dual referral to the Land Use and Sustainability Committee ("LUSC") and the Finance and Economic Resiliency Committee ("FERC") to discuss the request from the Applicant to renovate the Property. The Applicant is proposing a major renovation of the existing structure in order to accommodate a new high-end luxury hotel operator, Bulgari Hotels & Resorts (the "Proposed Development"). As set forth more fully below, the Applicant's request for a vacation, which involves the City's conveyance of the ROW to the Applicant, must comply with Chapter 82 of the City Code, relating to the sale or lease of City property, and Section 1.03(b)(4) of the City Charter, which requires approval by a majority 4/7 vote of all members of the Planning Board and 6/7 vote of the City Commission. As more particularly described below, the City Commission has the discretion to approve the vacation if the City Commission finds that the vacation meets the criteria established in Section 82-38 of the City Code and is in the public interest. The City right of way that is proposed to be vacated consists of a portion of the southern half of the 21st Street right-of-way, generally located between approximately 150 feet east of Collins Avenue and Miami Beach Drive, and consisting of approximately 6,736 square feet in total area ("ROW")abutting the Property. The ROW is more particularly described in the attached Exhibit "A". As permitted under Section 1.03(c) of the City Charter (discussed more fully below) and Section 118-5 of the City Code, the Applicant, upon obtaining fee ownership of the ROW, would create a unified development site, thereby permitting the aggregation of floor area("FAR")across the unified abutting parcels for the Proposed Development. At the December 18, 2020 FERC meeting, the Applicant presented its proposed renovation of the Seagull Hotel, and the Applicant's request for a vacation of the City's ROW. The Applicant confirmed that it had conducted its own independent appraisal of the property proposed to be vacated, and that the appraised amount would be proffered as a public benefit for the City by way of a monetary contribution to the City, to be used as directed by the Commission. To ensure a proper valuation of the ROW, the Administration engaged its own independent appraisal to appraise the market value for the ROW. The Applicant's appraiser valued the ROW at $5,000,000, and the City's appraisal valued the ROW at$7,400,000.00.The Owner's appraisal is attached as Exhibit"C" and the City's appraisal is attached as Exhibit "D". On January 22, 2021, the FERC discussed the appraisal results and analysis, with the participation of Applicant's representatives and City staff. At the FERC meeting, the Acting City Page 49 of 358 Commission Memo May 26, 2021 Page 3 Attorney outlined a preliminary analysis of the proposed vacation under the City Charter, and a more detailed analysis is set forth in this Memorandum. Additionally, at the January 22, 2021 FERC meeting, the Applicant accepted the City's higher appraisal value for the ROW at $7,400,000.00. Since the January 22, 2021 FERC meeting, the Applicant and the Administration have continued to discuss terms, including additional public benefits(in addition to the $7.4 million appraised value) discussed below. On February 10, 2021, the Mayor and City Commission approved the vacation of the ROW on first reading, setting a date for the second reading/public hearing for the vacation of the ROW. On April 27, 2021, following a presentation by the Owner, the Planning Board approved the vacation of the ROW, as required pursuant to Section 1.03(b)(4) of the City Charter. VACATION AGREEMENT The proposed vacation of the ROW would be memorialized in a vacation agreement between the Applicant and the City (the "Vacation Agreement"), attached to this Memorandum as Exhibit "F". As part of this renovation and the City's vacation of the ROW, the Owner has proposed the following to be included in the Vacation Agreement: 1. In consideration of the vacation, Applicant pay the City $7,400,000 as part of its public benefit package, with the schedule of payments discussed below. 2. The vacation agreement will provide for the City to convey the ROW to the Applicant at an agreed-upon closing date (prior to the issuance of the building permit for the Proposed Development). As permitted under Section 1.03(c) of the City Charter (discussed more fully below) and Section 118-5 of the City Code, the Applicant, upon obtaining fee ownership of the ROW, would oin the ROW and the Applicant's Property via a unity of title to create a unified development site, thereby permitting the aggregation of floor area ("FAR")across the unified abutting parcels. 3. As a condition of the proposed vacation, the Applicant would grant a perpetual, non-revocable easement in favor of the City, for the City's continued use of the ROW for vehicular, pedestrian and utility purposes, so that the public's use of 21st Street would not be altered or diminished in any way, a draft of the a perpetual, non-revocable easement is attached as Exhibit "H" to this Memorandum. 4. Applicant and the City shall enter into a Maintenance Agreement providing for installation (prior to the issuance of a Certificate of Occupancy) and perpetual maintenance of additional landscaping at the Applicant's sole cost in the portion of the City's Beach Access and Beachwalk area as depicted in Exhibit "E" that is directly to the east of the ROW, and directly to the east of Applicant's Property (defined below as the "Proposed Maintenance Area"). 5. Applicant shall pay all of the City's costs in connection with the proposed vacation of the ROW, including any City closing costs, recording fees, or outside legal fees that may be incurred by the City. 6. Applicant agrees that City's quit claim deed for the ROW shall contain a reverter clause, to provide for the ROW to revert back to the City in the event Applicant fails Page 50 of 358 Commission Memo May 26, 2021 Page 4 to satisfy all conditions of the Vacation Resolution and Vacation Agreement prior to the completion of the Proposed Development (except the installation and maintenance of the landscape improvements depicted in Exhibit "E," which shall be governed by the Maintenance Agreement),and with such reverter being without prejudice to any other rights or remedies that may be available to the City in the event the Applicant fails to satisfy the conditions of the Vacation ResolutionNacation Agreement. 7. Applicant agrees that City shall not issue a Temporary Certificate of Occupancy or final Certificate of Occupancy (whichever comes first) for the Proposed Development until the Applicant has satisfied all conditions of the Vacation Resolution and the Vacation Agreement. 8. In the event the foregoing conditions of the Vacation Agreement are not met (excluding the obligations under the Maintenance Agreement,which shall be solely governed by that Agreement), following notice to Applicant and a reasonable opportunity to cure, the Vacation Agreement shall be subject to termination, and in the event of any such termination, the Vacation Resolution shall be null and void. The Vacation Agreement is attached to this Memorandum, in substantial form, as Exhibit "F". APPRAISAL REPORTS As discussed above, the Owner proffered a contribution to the City for the appraised value of the ROW as part of its public benefit package, in consideration of the vacation of the ROW. On December 18, 2022, the Owner presented an appraisal performed by Walter Duke and Partners to appraise the fair market value of the ROW to be vacated. The appraisal commissioned by Owner appraised the market value "as is" at $5,000,000. A copy of the Owner's appraisal report is attached as Exhibit"C". In addition to the appraisal engaged by Owner, the City's Public Works Department engaged CBRE to appraise the fair market value of the ROW to be vacated. The City's independent appraisal valued the ROW at$7,400,000. A copy of the City's appraisal report is attached hereto as Exhibit "D". At the January 22, 2021 FERC meeting, the Owner informed the City thit it had accepted the City's valuation of the ROW at $7,400,000 and was prepared to offer this full amount as part of its public benefits package to be memorialized in the Vacation Agreement. PUBLIC BENEFITS PACKAGE 1 SCHEDULE OF PAYMENTS The Owner has proposed that the cash payment to the City in the amount of $7,400,000 would be provided in installment payments, namely: a. The Owner shall make the first payment to the City, in the amount of$750,000, within thirty (30) days following all necessary Development Board approvals for the Proposed Development becoming final and non-appealable (the "First Installment"). The First Installment shall be refundable until the vacation of the ROW is effective. Page 51 of 358 Commission Memo May 26, 2021 Page 5 b. The Owner shall make the second payment, in the amount of$3,325,000, at the closing, prior to the issuance of a full building permit for the Proposed Development (the "Second Installment"). Upon the Owner's payment of the Second Installment, both the First Installment and Second Installment be non-refundable. c. The Owner shall make the third payment, in the amount of$3,325,000, prior to the issuance of a temporary certificate of occupancy allowing public occupancy(the"TCO")or certificate of occupancy (the "CO"), whichever comes first, for the Proposed Development (the "Final Installment"). The City shall condition and withhold the issuance of the TCO or CO for the Proposed Development upon the Final Installment Payment. The Final Installment shall be non-refundable. In addition to the public benefits initially proposed by the Owner, the Owner has proffered to the City that the Owner, at its own sole cost and expense, would maintain and repair the beachwalk area, consisting of the serpentine path and surrounding areas, located both directly to the east of the ROW and directly east of the property ("Proposed Maintenance Area"). The Proposed Maintenance Area is attached hereto as Exhibit"E".Currently,the City is responsible for the repair and maintenance of the Proposed Maintenance Area. PROPOSED USES OF OWNER'S CONTRIBUTION At its meeting on January 22, 2021, the FERC also discussed possible uses of the proceeds from the Owner's $7.4 million payment in consideration for the vacation parcel, and directed the Administration to identify additional potential uses. The following summary includes uses proposed by the FERC and the Administration: 1. Replenish the City's General Fund and Resort Tax reserves The Owner's contribution may be allocated to the City's General Fund and Resort Tax reserves, in order to mitigate the impact of COVID-19. As part of managing the negative financial impact from COVID-19, the City has planned the following use of reserves: General Fund Resort Tax Reserve Amount Reserve Amount Reserve as of 09/30/2019 $80.6 million $15.2 million Use of Reserve in FY 2020 ($0.3 million) ($5.0 million) Use of Reserve in FY 2021 ($9.6 million) 0 Remaining Reserve $70.7 million $10.2 million Note:use of reserves does not include COVID-19 related expenses that are considered reimbursable Since the FY 2021 Budget was adopted, the planned use of reserves has changed due to the slower than anticipated recovery in Resort Tax and General Fund revenues from the impact of COVID-19. The preliminary first quarter projections anticipate that an additional $27.8 million will be needed from reserves to re-balance the FY 2021 Budget. To help offset this cost, the Administration recommends applying funds recently received from the Coronavirus Relief Fund under the CARES Act, through Miami-Dade County. As of May 28th the City has received approximately $41.1 million of which, $37.0 million is reimbursable to the General Fund. The City Commission has also approved funding $7.5 million of Police Initiatives on a one-time basis and $1.2 million for no furlough days for FOP and & IAFF employees and 1 less furlough day for all Page 52 of 358 Commission Memo May 26, 2021 Page 6 other employees. If the $7.4 million from the Seagull Hotel transaction is added to the reserve calculation, the General Fund reserve would total $78.6 million. General Fund Resort Tax Reserve Amount Reserve Amount Remaining Reserve $70.7 million $10.2 million New gap in FY 2021 ($27.8 million) CARES Act funds to date $37.0 million Police Initiatives(staffing,cameras, RTCC) (S7.5 million) No furlough days for FOP & IAFF, 1 less furlough day for al other employees ($1.2 million) Revised Reserve $71.2 million $10.2 million Seagull Hotel funds $7.4 million Revised Reserve $78.6 million $10.2 million 2. Expansion of Collins Park The Owner's $7.4 million contribution presents an extraordinary opportunity to recapture public green space that was lost due to poor planning in the 1950's—namely, the portion of Caliins Park located east of Collins Avenue, and bounded by 21St Street on the south and 22^d Street on the north. Since the 1930s, this area was an extension of the park from the current Bass Museum all the way to the ocean. In the 1950s, this area was converted to a paved parking lot. In the early 1960s, a library was constructed just west of Collins Avenue When Collins Park was renovated in the early 2000s, the library was removed and the center portion of the parking lot east of Collins Avenue was converted back to green space. The thinking, at the time, was that the conversion of the remainder of the parking lot back to green space would be addressed upon the completion of the Collins Park Garage. As we have seen over the last decade and a half, the very limited central green space within the parking lot, which is not directly accessible from across Collins Avenue, is not able to be fully utilized due to its location. The surface parking areas to the north and south of the central green space, consisting of approximately 199 parking spaces, are preventing the larger Collins Park from reaching its true potential and becoming one of the signature parks in the City. Now that we have a fully operational public parking garage less than a block away (Collins Park Garage), as well as approximately 800 spaces less than 2 blocks away in the Convention Center, an opportunity is presented to complete Collins Park and replace unnecessary surface parking with much needed resilient and sustainable green space. As depicted in the very preliminary concept plans (attached), 21st and 22`4 Streets would remain as-is, with turn arounds at the eastern terminus of each ROW. This will ensure that the W and Seagull (soon to be Bulgari) hotels continue to have full access. Additionally, on-street parallel parking can remain on both sides of 215t and 22^d Street. The re-introduction of this green space bears an important relationship to the vacation of the southern half of 21St Street in favor of the Seagull property. Page 53 of 358 Commission Memo May 26, 2021 Page 7 The removal of the existing surface parking lot is warranted for the following reasons: 1. The area was historically open green space; 2. The re-introduction of green space can be designed as a resilient park, similar to the park proposed in connection with the 500 Alton project, on this uniquely situated oceanfront parcel; and 3. The utilization of the existing area as surface parking falls far short of the property's potential, considering the location of the property, the opportunity to expand the park, and the significant availability of nearby off-street parking (Convention Center and Collins Park Garage). Given the cost involved in converting the parking lot to greenspace, City budget constraints, as well as the significant benefit to nearby residents and businesses(including the Seagull Hotel) by expanding the park, serious consideration should be given toward utilizing some or all of the Owner's contribution to convert the remainder of the surface parking lot to resilient green space. 3. Byron Carlyle Redevelopment After the Byron Carlyle Theater was declared unfit for occupancy and the deteriorating property conditions became too costly to repair, the City Commission authorized RFP-2019-KB for development of a mixed-use project that would deliver a comparable cultural component for public use. The City terminated negotiations with the sole remaining proposer and the Administration needs to find an alternative. The proposed revenue could be used in one of two(2)ways in relation to the Byron Carlyle site: (1) Renovate and rehabilitate the existing structure. The most recent independent analyses estimated repairs and upgrades to bring the building into compliance with building regulations would be several million dollars. These estimates do not include enhancements or adaptations for new uses including the significantly low elevation of the building, which leaves it susceptible to periodic flooding; or (2) Partially fund construction of a brand-new facility entirely owned and operated by the City. 4. Barclay Plaza The Barclay Plaza Apartments is currently an abandoned, dilapidated historic building located immediately to the east of the Miami Beach Convention Center, at 1940 Park Avenue. Boarded up for the last 5 years, this building has become an eyesore and safety hazard. This building, located within one block of Miami Beach Senior High School and in the heart of the Collins Park neighborhood, is dynamically located along major bus routes, and can become a vibrant and much-needed community center. The property could be rehabilitated to house non-profit agencies (including the Intergenerational Child Care) that provide key economic support services to our community's workforce, families, and elderly. This could include agencies currently located in the South Shore Community Center, which will be replaced with the new Fire Station #1, as well as agencies that have left the City because of rising rent costs (such as Florida Department of Children and Families). The City has identified up to $5 million through HUD's Section 108 Loan Program for rehabilitation costs but is still short of funds needed to complete this project(including design, rehabilitation and subsequent implementation). In addition to safeguarding key non-profit partners, the Barclay can also house an expanded childcare program that offers services for Page 54 of 358 Commission Memo May 26, 2021 Page 8 individuals who cannot currently obtain professional childcare after work hours, and who form the backbone of the City's entertainment, cultural and hospitality industries. 5. Collins Park Garage Retail Space The City Commission is set to consider a public-private partnership during the June City Commission meeting for the cultural activation of the ground floor retail of the Collins Park Garage by Miami New Drama for the production of live theatrical performances and uses ancillary thereto. The agreement, as currently contemplated with a favorable recommendation from FERC at its April 30, 2021 meeting, would require a City contribution of $4,750,000 for the buildout of the 16,000 square foot commercial space to allow for a black box theatre, rehearsal spaces, design studios, office space and a café. While all of the options described above are important and an integral part of the future, the uncertainty related to the preliminary tax roll for the FY 2022 budget process, the continuing impact of COVID-19 on the City's budget, and recent dramatic increases to the cost of capital projects due to supply chain issues related to COVID-19 warrant a conservative approach. As a result, the Administration's recommendation is to allocate all of the $7.4 million Owner's Contribution to the City's reserves. PLANNING ANALYSIS The Planning Department's analysis, as required pursuant to Section 82-38 of the City Code, is attached hereto as Exhibit"G". LEGAL EFFECT OF A RIGHT-OF-WAY VACATION The City is currently not the underlying fee simple owner of the 21st Street ROW, and does not hold legal title to the ROW. Instead, the City holds a right of way dedication, which confers on the public an exclusive right of use, so long as the dedicated right of way is used for the purpose of the dedication (namely, for pedestrian and vehicular access). The Owner, as the successor to the original abutting property owners who dedicated the ROW when the plat was created, holds the underlying reversionary fee interest in the dedicated ROW. See Robbins v. White, 52 Fla. 613, 42 So. 841, 841-44 (Fla. 1907) (a dedication "does not divest the owner of the title to the land, but only subjects the land and the title to the public easement for street purposes,"with title remaining in the dedicator or his successors in title); Coral Gables v. Old Cutler Bay Homeowners Corp., 529 So. 2d 1188, 1189-90 (Fla. 3d DCA 1988)("[A] common law dedication does not pass the fee in land. The interest acquired by the municipality is generally held to be in the nature of an easement, with the public having a right of use and nothing more.") The vacation of a right-of-way is a legislative act within the exercise of the City Commission's discretion, if the City Commission determines the vacation is in the public interest. See, e.g., Robbins v. White, 42 So. 2d 841 (1907); City of Temple Terrace, Fla. v. Tozier, 903 So. 2d 970 (Fla. 2d DCA 2005). If approved, the vacation would be effectuated by the City Commission's adoption of a resolution authorizing the vacation, and the City thereafter quit claiming any right, title and interest it has in the ROW, (thereby extinguishing the dedication). By operation of law, once the City vacates the ROW, the underlying fee interest in the ROW vests with the current abutting property owners. See, e.g., Servando Bldg. Co. v. Zimmerman, 91 So. 2d 289 (Fla. 1956); Smith v. Horn, 70 So. 435 (Fla. 1915); Hurt v. Lenchuk, 223 So. 2d 350 (Fla. 4th Page 55 of 358 Commission Memo May 26, 2021 Page 9 DCA 1969) ("When a street is lawfully vacated, title to the area vacated vests in the adjoining property owners"). Based on the foregoing, under the current structure of the transaction, at the Closing when the City delivers its quit claim deed to the Owner, the Owner will be fully vested with its underlying fee interest in the vacated ROW. Importantly, at the Closing, Owner will simultaneously encumber the vacated ROW, by granting the City an irrevocable, perpetual easement, in favor of the public, for the continued public use of the ROW. The easement runs with the land, and has a scope that is similar to the interests the City currently has in the ROW dedication. Accordingly, by requiring the Owner to deliver the easement as a condition of Closing, the transaction is expressly structured to address concerns about public access, and to ensure that the rights of the public to the continued use of the ROW will not be abandoned, diminished or altered in any way. Finally, by vesting the Owner with the fee interest(subject to the easement in favor of the public), the structure of the transaction would permit the Owner to include the vacated ROW as part of a unified development site, and to aggregate its vested development rights on unified abutting parcels through a covenant in lieu of unity of title, as permitted by Section 1.03(c) of the City Charter (without a referendum) and Section 118-5 of the City Code, as discussed more fully below. Of course, the benefit to the Owner would only be available if the Owner complies with the terms and conditions of the Vacation Resolution (including, among other terms, the requirement to deliver to the City the irrevocable, perpetual easement for the continued public use of the ROW). APPLICABILITY OF SECTION 1.03jb)(4) OF THE CITY CHARTER As with every transaction involving a conveyance of property, the City Attorney's Office has evaluated the relevant provisions of Section 1.03 of the City Charter, which governs the disposition of City property. Consistent with prior City interpretation and action on other similar right-of-way vacation applications, the proposed vacation requires approval by a majority 4/7 vote of the Planning Board and 6/7 vote of the City Commission. Analysis of Relevant Charter Provisions 1. Section 1.03(b)(1) of the City Charter: Does the vacation involve a sale, exchange, conveyance or lease of ten years or longer of City-owned Park, Recreation, or Waterfront Property, which would require voter referendum approval? No. The proposed ROW vacation, which would vacate the southern half of 21st Street, is located outside the boundaries of Collins Park. No portion of Collins Park is proposed to be transferred. Further, the ROW itself is not ''park" or "recreation property." The ROW serves as a public street, and no part of it is used for park or recreation purposes. This issue was previously addressed as part of the Ocean Terrace vacation, wherein the City Attorney previously opined as follows, an opinion which is directly applicable to the instant matter as well: The Right of Way was dedicated by plat expressly for public street purposes and for no others. See Florida E.C.R. Co. v. Worley, 49 Fla. 297, 38 So. 618, 621 (Fla. "905) (the placement of streets on a plat map "evinces an intention to dedicate the streets to public use as such. This is true although there is no formal written dedication accompanying the Page 56 of 358 Commission Memo May 26, 2021 Page 10 map"). Were the City to convert the Right of Way to a "park"–a use inconsistent with the plat dedication—the Right of Way would revert to the abutting property owner by operation of law, without any payment or contribution to the City. See Woodlawn Park Cemetery Co. v. City of Miami, 104 So. 2d 851 (Fla. 3d DCA 1958) (portion of right–of–way parcel dedicated to municipality for street purposes was held to be abandoned and reverted to landowner when used for other purposes). For these reasons, the Right of Way is purely a public street and does not function as, and cannot be deemed, "park" or ''recreation" property within the meaning of Section 1.03(b)(1) of the City Charter. In addition, the ROW is not waterfront property. 21st Street terminates at the eastern edge of platted Miami Beach Drive. Immediately to the east, there is a separate property that is part of Folio No. 02-3226-001-0370, which is waterfront property. Because no portion of the separate waterfront property is at issue here, the application therefore does not involve waterfront property. The above analysis is analogous to the Ocean Terrace vacation, where the vacated right-of-way was separated from the waterfront by a separately platted parcel which, as in this case, was not proposed to be transferred. • ll- 4111,1111* 4111- `7 1 T • I ` ., t3 14471* �_ t rt.4, - - • • 2. Section 1.03(b)(2) of the City Charter: Does the application involve a sale, exchange, conveyance or lease of ten years or longer of the Cultural Campus (all city-owned property bounded by 22nd Street on the North, Park Avenue on the West, 21st Street on the South, and Miami Beach Drive on the East), which would require voter referendum approval? No. The Cultural Campus boundary ends at the northern boundary of 21st Street and does not include any part of the 21st Street ROW. Moreover, the application includes Page 57 of 358 Commission Memo May 26, 2021 Page 11 only the southern half of 21st Street and does not abut the southern boundary of the Cultural Campus. Accordingly, Section 1.03(b)(2)of the City Charter is not implicated, as the street is located outside the boundaries of the Cultural Campus, as referenced in the City Charter. 3. Section 1.03(d) of the City Charter: Does the application involve a sale, exchange, conveyance, lease, or any other transfer of any City interest in a public beach right- of-way(extending eastward from Collins Avenue/Ocean Drive to the erosion control line), which would require voter referendum approval? No. The ROW itself extends eastward from Collins Avenue but merges and continues onto Miami Beach Drive. As the survey of the area confirms, 21st Street does not reach the erosion control line, as the eastern edge of the ROW to be vacated lies approximately 150 feet to the west of the erosion control line, as set forth below. Section 1.03(d) therefore does not apply to the proposed vacation. 1-EASTERN EXTENT r -;,‘,1-EROSION CONTROL _ ..+..- - L.,. x* -�- .44.1 .'�>•. 9, � Daae 4122' . _�.�:': Commission Memo May 26, 2021 Page 12 be vacated. Accordingly, public access to the waterfront is neither disrupted nor eliminated, and public access to the waterfront is maintained. 5. Section 1.03(c) of the City Charter: Does the application involve the aggregation of development rights on unified abutting parcels, as may be permitted by ordinance, such that the referendum requirement of Section 1.03(c) does not apply? Yes. Section 1.03(c) of the City Charter specifically does not apply to the "aggregation of development rights on unified abutting parcels, as may be permitted by ordinance." Section 118-5 of the City Code permits a property owner with fee simple title to abutting parcels to aggregate development rights through a covenant in lieu of unity of title. The requested vacation, by vesting the fee interest in the ROW with the abutting property owner, would allow the property owner to create a unified development site and join the vacated right-of-way with the abutting property. Accordingly, Section 1.03(c) of the City Charter, by its express terms, permits this aggregation. Accordingly, based on the above analysis, and consistent with prior interpretations on similar projects, the very heightened approval requirements of Section 1.03(b)(4) of the City Charter would apply to the proposed vacation. In order for the vacation to proceed, the vacation requires approval by a majority 417 vote of all members of the Planning Board and 6/7 vote of the City Commission. CONCLUSION The Administration recommends approval of the vacation at Second Reading on May 26, 2021, subject to the terms and conditions contained herein. Exhibit "A" - Legal Description of the ROW Exhibit "B" - The Applicant's Property Exhibit "C" - Applicant's Appraisal Exhibit "0" - City's Appraisal Exhibit "E" - Proposed Maintenance Area / Maintenance Agreement Exhibit "F" - Vacation Agreement Exhibit "G" - Planning Analysis E thibit "H" - Easement Agreement Page 59 of 358 Page 60 of 358 EXHIBIT "A" LEGAL DESCRIPTION: RIGHT OF WAY VACATION FOR A PORTION OF 21st STREET A portion of 21st Stree: y-g in Section 34, Township 53 South, Range 42 East of AMENDED MAP OF THE OCEAN FRONT PROPERTY C L MIAMI BEACH IMPROVEMENT COMPANY, as recorded ih °lot Book 5, Pages 7 and 8, of the Public Records of Miami—Dade County, Florida, being adjacent to Lots 1, 3 and 5 of Block A and the Easterly projection thereof and being more particularly described as follows: Begin at the Northwest corner of said Lot 5 of Block A; thence S 70'02'49" E along the South right of way line of said 21st Street also being the North 'ine of said Block A and the Easterly projection thereof, for 269.46 feet; thence N 19'57'11" E for 25.00 feet a point on the Centerline of 21st Street; thence N 70'02'49" W along said center line of said 21st Street for 269.46 feet; thence S 19'57'11" W along the Northerly projection of the West line of said Lot 5 for 25.00 feet to the Point of Beginning. SURVEYOR'S NOTES: — This site 'es In Section 34, Township 53 South, Range 42 East, City of Miami Beach, Miami—Dade County, Florida. Recr ngs he-eon are referred to an assumed value of N 70'02'49" W for the North line of Block A. _ands shown hereon were not abstracted for easements and/or rights—of—way of records. -his is not a "Boundary Survey" but only a graphic depiction of the description shown hereon. 3'~ensions show- ' ereon a•e based on Fortin, Leavy, Sk'les, sketch #2007-084—NAVD. SURVEYOR'S CERTIFICATION: I hereby certify :ha: :his "Sketch of Description" was made under my responsible charge o- 'save--oe' z3, 2020, and meets `.-e aaoliccb;e codes as set forth in the Florida Administrative Code, pursuant to Section 472.027, Florida Stc:.:'.cs. "Not valid without the signature and original raised seal or a digital signature of the Florida Licensed Surveyor and Mapper shown below" FORTIN, LEAVY, SKILES, INC., LB3653 Digitally signed by Daniel C Fortin DN:c=US,o=Unaffiliated, / / -�% �_�' ou=A01410D0000017402A2BF420004 / $ - - 295B,cn=Daniel C Fortin By � �- --Date:-2020.11.24 16:45:34-05'00' Daniel C. Fortin Jr., For The Firm Surveyor and Mapper, LS6435 State of Florida. t-DrawnB" Dw 'LEGAL DESCRIPTION, NOTES& CERTIFICATION 'Date 1 1/23/20 Cad.No. 201042 FORTIN LEAVYS KILESINC. Soak 1"=50' Ref Dwg , , lob.No. 201 042 2007-084-NAV= CONSULTING ENGINEERS, SURVEYORS &MAPPERS FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER:00003653 Dwg.No. 1020-092 180 Northeast 168th Street/North Miami Beach,Florida 33162 • 11/23/20 Phone 305-653-4493/Faa ffr}.51j$g Email fls@flssurvey.com i Sheet of 3 EXHIBIT "A" \ 1U t Qw W > CO CITY PARK I _ cc PER PLAT BOOK 5.PAGE 7 I 2 0 L_ _1 Q 21st STREET o4 s 19°57'11"w o4— g 180.00' N / 25//00' N 70°02'49"W CENTER LINE 269.46' ((PARK AVENUE-PLAT)PUBLIC RIGHT OF WAY) II Il/ �� r S 70°02'49"E 269.46' 30.00 POINT OF BEGINNING SOUTH LINE OF 19°57'11"E NORTHWEST I NORTHERLY 21st STREET NORTH LINE OF i 25.00' ' CORNER OF LOT 5 PROJECTION OF BLOCK A I UJ WEST LINE LOT 5 AND EASTERLY I D PROJECTION W<3 I NOT DESIGNATED > � LOT 9 LOT 7 LOT 5 LOT 3 a ^ ILOT 1 PER PLAT z J O U)m Q 1• W w v 1 EASTERLY IL-; Z F m AMENDEDOMAPOF THE OCEAN FRONT PROPERTY I j EXTENSION LIN THE— MIAMIBEACH IMPROVEMENT COMPANY OF THE `, :-a PLAT BOOK 5,PAGES 788 NORTHERLY O ___ _ _ _ T _ LINE OF LOT 2 0 i ...MOO, BLOCK A • • LOT 10 LOT 8 . LOT B LOT 4 LOT 2 NOT SUBDIVIDED I i i I I I ,`,f O�‘\\A\‘ GRAPHIC SCALE t 20 1� A \`�� `Illlllllllllllllt t 0 30 60 `\% N 1 ( IN FEET ) I inch - 60 ft (Drawn By DWF 1 SKETCH OF DESCRIPTION /z3/zo Cad No. 201042FORTIN, LEAVY, S KILES, INC. SC8'` 1„=60' Ref.Dwg. I 2007-084-NAV_ CONSULTING ENGINEERS, SURVEYORS &MAPPERS • Job.NO 201042 f FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER:00003653 Dwg.No. 1020-092 t 180 Northeast 168th Street/North Miami Beach,Florida 33162 I Matted: 11/23/20 Sheet of J \ Phone 305-653-4493/Fa f4�-afIng Email fis@fissurvey.com 23 i EXHIBIT "A" STREET VACATION w z I I Z CITY PARK ' ! LII Q 21st STREET Q (....) 0(I) SEAGUL HOTEL Z J 0 B 6 4 2 20th STREET J (—)2 O i 0 �2 a- 4C-1- It J 40) • v 74 VA �L 1��ti,"o`\\\\\ �ZG fr%'C A _0...y (Drawn By DWI' LOCATION SKETCH 1 I� 1 1/23/20 Cad No. 201042 F ORTIN, LEAVY, S KILES, INC. � '` NTS Ref.Dwg Job.No. 201042 2007-084-NAVD CONSULTING ENGINEERS, SURVEYORS&MAPPERS I , FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER:00003653 Dreg.No. 1020-092 J 180 Northeast 168th Street/North Miami Beach,Florida 33162 -- Molted: /23/20 K Phone 305-653-4493/Fa3cititfeef3.,51308 Email flsgflssurvey.com Sheet 3 of 3 i Page 64 of 358 Exhibit B Legal Description of 100 21 Street (Abutting Property) Lots 1, 3 and 5, Block A, of AMENDED PLAT OF THE OCEAN FRONT PROPERTY OF THE MIAMI BEACH IMPROVEMENT COMPANY, according to the map or plat thereof, as recorded in Plat Book 5, Pages 7 and 8, of the Public Records of Miami-Dade County, Florida. TOGETHER WITH that certain strip of land lying between the Easterly boundary of said Block A and the Atlantic Ocean and bounded on the North by the Southeasterly extension of the North line of said Block A, and bounded on the South by the Southeasterly extension of the dividing line running East and West between the lots in said Block A, as the same appears of record in Plat Book 5, Page 7, of the Public Records of Miami-Dade County, Florida. Easement TOGETHER WITH appurtenant driveway easement contained in Deed Book 1727, Page 535 as modified by Agreement recorded in Deed Book 1974, Page 1, of the Public Records of Miami-Dade County, Florida. Page 65 of 358 Page 66 of 358 WALTER DUKE + PARTNERS COMMERCIAL REAL ESTATE VALUATION REAL ESTATE APPRAISAL REPORT OF PROPERTY LOCATED AT 100 21ST STREET LOCATED AT Ofr 100 21st Street \ \ ..)., ,r0'4 °‘#. ' Miami Beach, Miami-Dade County, Florida 33139 \ \ : ''''' , '''.( \\� FCR � 1 yI BHI Miami Limited Corp. 1521 ARa 1 `�\\ Miamilton , FoLd 33139#403 \\ A''! Attention Wayne Landing, Head of Real Estate I/ \\ ,\ , ' ,,,\\,\\, PREPARED BY \� Walter B. Duke. III, MAI, CCIM ,\ \ Andrew S. Rolf, MAI II 1 t 2860 W State Road 84, Suite 109 \ � Fort Lauderdale, FL 33312-4804 A Ire I. E: t • 358 WALTER DUKE + PARTNERS COMMERCIAL REAL ESTATE VALUATION Walter R.Duke,11I.M kl CUM' Mala•('cr lifted Grnero/ippru n. November 25, 2020 Mr. Wayne Landing Head of Real Estate BHI Miami Limited Corp. 1521 Alton Road#403 Miami, FL 33139 Re Property Located at 21s1 Street 100 21st Street Miami Beach, Miami-Dade County, Florida 33139 Dear Mr. Landing At your request, Walter Duke + Partners has prepared a real estate appraisal of the property referenced property. The attached Appraisal Report is intended to comply with the reporting standards set forth under Standard Rule 2-2 of the Uniform Standards of Professional Appraisal Practice(USPAP). • The subject of this appraisal is a 6,736 SF segment of 21st Street located at the corner of Miami Beach Drive,just east of A-1-A in the City of Miami Beach_ • Situated on the north side of the existing Seagull Hotel, the parcel is presently improved as a paved roadway. • The owner of the Seagull Hotel is planning a major redevelopment of the hotel and as part of the redevelopment process the owner is interested in acquiring the rights to the subject property in order to enhance available F.A.R. to the existing hotel. • The RM-3 zoning of the subject site would permit additional F.A.R. of 2.0 or 13,472 SF of additional building area to the hotel renovation. • According to the client, the additional F.A.R. will primarily be utilized to create larger hotel rooms but will also allow the owner to expand amenity areas such as the proposed spa, lounge and restaurant amongst others. • The room count of the new hotel would decrease from the existing 172 rooms to 104 rooms which is consistent with zoning that does not permit hotel expansions to increase the number of rooms. • The hospitality market in Miami Beach is current in distre,.s due to the impacts of the global pandemic. The purpose of the appraisal is to estimate the following values: • Market Value "As Is° of the development rights being released by the partial vacation of the 21st Street Road Segment as of November 11, 2020. As a result of the enclosed investigation and analysis, the Market Value of the subject property, as previously described: was estimated as follows: Segment of 21st Street Date of Value Valuation Scenario Value Conclusion Market Value"As Is" November 11, 2020 $5,000,000 Page 68 of 358 Mr. Wayne Landing Head of Real Estate BHI Miami Limited Corp. November 25, 2020 Page 2 The accompanying report describes in detail the neighborhood site, proposed improvements. approaches to value and other pertinent data that was used to solve the appraisal problem The appraisal is subject to the assumptions and contingent and limiting conditions set forth in the report. This appraisal report has been prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code of Professional Ethics and Standards of Appraisal Practice of the Appraisal Institute. This Appraisal Report was prepared for and submitted to the client BHI Miami Limited Corp. for the intended use of for the intended use of valuing the development rights of the area sought to be vacated by the City We understand that it will be submitted by BHi Miami Limited Corp to the city as part of its application to vacate the 21st Street Road segment. This report cannot be used by any other person/entity or for any other purpose. Use of this report by others is not intended by Walter Duke + Partners. Neither purchasers nor sellers of the subject property, nor any borrowers, are intended users of this appraisal report and no such third parties should use or rely on the appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. Extraordinary Assumptions—None. Hypothetical Conditions— None, Significant Factor - As of the date of this report, the global outbreak of a "novel coronavirus" known as COVID-19 was officially declared a pandemic by the World Health Organization (WHO). The world economy is in a state of high volatility based on the uncertainty of the outcome of the impact of the virus. in the United States, the federal, state and local governments are taking steps to limit the spread of the virus that have negatively impacted several facets of the economy including travel, tourism and hospitality. Based on the results of historic pandemics of the 20th century (Swine Flu, Asian Flu, Hong Kong Flu. SARS, MERS, EBOLA and HIV/AIDS) it is anticipated the current pandemic will pass in time; however, the extent of the economic damage remains to be seen. Our opinions and conclusions are based on information available and accounts for marker perception as of the date of this appraisal report. Should you have any questions regarding this report please do not hesitate to call Thank you for the opportunity to serve you Sincerely, Walter Duke + Partners Walter Bryan Duke, Ill, MAI, CCIM Andrew Scott Rolf MAI State-Certified General Real Estate Appraiser RZ375 State-Certified General Real Estate Appraiser R/3092 2860 W State Road 84.Suite'09 I Fon Lauderdale Ronda 33312-4804 I T 954.587.2701 : F 954 587 2702 I Since 1975 Page 69 of 358 INTRODUCTION 1 Appraisal Summary Walter Duke+ Partners File Number 200927-L USPAP Reporting Format Real Estate Appraisal Report Address/Location 100 21st Street Miami Beach, Miami-Dade County, FL 33139 Property Type Publicly dedicated road segment Site Sizes 21''Street Road Segment 6,736 SF or 0.16 Acres Seagull Hotel Site 58,361 SF or 1.34 Acres Total Site 65,097 SF or 1.49 Acres Zoning RM-3, Residential Multifamily, High Intensity Property Rights Appraised Fee Simple Development Rights Released by Roadway Vacation Proposed Use Hotel Expansion Additional FAR 13,472 SF Building Area Flood Zone "X"and `AE" FEMA Map Panel Number 12086C0317-L, dated 9/11/2009 Census Tract 42.06 Highest and Best Use As Vacant Assemble with adjacent site for hotel expansion As Improved Assemble with adjacent site for hotel expansion Market Value"As Is" 21St Street Road Segment $5,000,000 Valuation Date November 11, 2020 Date of the Report November 25, 2020 Extraordinary Assumptions None Hypothetical Conditions None Appraisers Walter B. Duke, Ill, MAI, CCIM Andrew S. Rolf, MAI 2860 W State Road 84, Suite 109 Fort Lauderdale, FL 33312-4804 WALTER_ DUKE +PARTNERS COMMERVAI REAL ESTATE VALUATION Page 70 of 358 INTRODUCTION 2 Table of Contents Certification of Appraisal 4 PHOTOGRAPHS 5 Aerial Facing West 6 Site Plan with Road Segment 7 PREMISES OF THE APPRAISAL 10 Appraisal Format 11 Type and Definition of Value 11 Intended Use of the Appraisal 11 Terms and Definitions 11 Property Rights Appraised 11 Date of Appraisal 11 Date of Report 11 PRESENTATION OF DATA 12 Property Identification 13 Scope of Work 13 Property Identification 13 Property Inspection 13 Property Information 14 Street Address 15 Legal Description 15 Owner of Record 15 Pending Sale and/or Listing 16 COVID-19: IMPACTS ON COMMERCIAL REAL ESTATE 17 Site Description 21 Comments 21 Zoning Description 22 Market Participants/Most Probable Purchaser 24 Credit Market Yields /Capital Markets 24 Marketability 25 Exposure Time 25 Reasonable Marketing Time 25 ANALYSIS OF DATA 27 Highest and Best Use 30 Highest and Best Use As Vacant 30 ADDENDA 39 Florida's Economic Conditions 54 Florida Market 58 Snapshot 58 Regional Location Map 62 Neighborhood Location Map 83 ASSUMPTIONS, CONTINGENT & LIMITING CONDITIONS DEFINITIONS LEGAL DESCRIPTION & SURVEY BUILDING PLANS COMPARABLE SITE SALE PROFILES ZONING REGIONAL DESCRIPTION WALTER DUKE +PARTNERS COMMERCIAL REGI ESTATE VALUATION Page 71 of 358 INTRODUCTION 3 NEIGHBORHOOD DESCRIPTION DEMOGRAPHIC PROFILE ENGAGEMENT LETTER QUALIFICATIONS WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 72 of 358 INTRODUCTION 4 Certification of Appraisal I certify that, to the best of my knowledge and belief, • the statements of facts contained in this appraisal report, upon which the analyses, opinions, and conclusions were based. are true and correct. • the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions. and are my personal, unbiased professional analysis, and conclusions. • we have no present or prospective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved • our compensations not contingent upon a minimum valuation or an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. • the appraisal assignment was not based on a requested minimum valuation, a specific valuation. or the approval of a loan. • the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP). • the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • the use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. • as of the date of this report Walter B. Duke. III has completed the continuing education program for Designated Member of the Appraisal Institute. • as of the date of this report Andrew S. Rolf has completed the continuing education program for Designated Member of the Appraisal Institute. • Andrew Rolf made a personal inspection of the property that is the subject of this report on November 11. 2020. Walter B. Duke, Ill did not personally visit the property • no one provided significant professional assistance to the person signing this report. The analyses. conclusions, and opinions contained in the report are the principal effort of the undersigned. However, certain functions. such as data collecting and verification, may have been performed by other members of the staff. • Walter B. Duke, III and Andrew Rolf have not performed services, as an appraiser, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this appraisal assignment. As a result of the enclosed investigation and analysis, the Market Value of the subject property, as previously described was estimated as follows' Segment of 21st Street Date of Value Valuation Scenario Value Conclusion Market Value"As Is" November 11, 2020 $5,000,000 Walter Duke+ Partners Walter Bryan Duke, Ill, MAI, CCIM Andrew Scott Rolf, MAI State-Certified General Real Estate Appraiser RZ375 State-Certified General Real Estate Appraiser RZ3092 WALTER DUKE +PARTNERS COMMERCIAL REAL.ESTATE VALUATION Page 73 of 358 PHOTOGRAPHS — -- PHOTOGRAPHS WALTER DUKE +PARTNERS co.,4E.c,AL REAL ESTATE vAL„A Page 74 of 358 PHOTOGRAPHS 6 Aerial Facing West ......., ,„ , . .", ••• . - . •;.., .c--..-ra ...t.". . • ' .. t.1 _ .., -_. c _ . t= ,.... - -..'1 ".'.."**".......... -- . ,..-- . ,At.,, . 'v.,,,,,..' 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' • r.'...:. ,..,:•:4 -' ' ' - , , . . ..., , . . — , ..., , . , ,..14 4,;,:i..,,,.• , ,: , . . ---• - WALTER DUKE +PARTNERS commEpcIAL REAL ESTATE VALUATION PHOTOGRAPHS 7 Site Plan with Road Segment • "=1111 • 13 t i ,. . 1: i,., m 11 %.i• rr ' itilliihinot- MI • 1 .a W I 3� . • �1i . le ^Y Y 11 +i y 1� :.o:war.. ..4.14`11" -.! , • 00 J/o r , i � '— - fvI ,I L III cI111, x dt --.� � . i.-J w�N►I•T -1 •ii r14{•tWr �:.i{l SLY.' . � M • • ._ �� +^_r • • V•=• ♦ -�� , • .. r Lfla at N • ---int WALTER DUKE +PARTNERS COMMERCIAL REAL ESTA IE VALUATION PHOTOGRAPHS 8 _. f, .►i .. ,� fir* a zee � rif vileSt t P! ►.w 1 • 4. Amy— lit ` r Pa,queo rn.,n bea<-h ' — I ;� I 1 t a• .-'. - • , in _ 111 i ._ , Subject All • i k- . •i -...r AERIAL OF ROAD SEGMENT E. TJ1J 6 "I" :. I use iff. , - --* — vow .. .. trtifiriprell1111111101111611r"--11111111 gi- • .144/4/41411111,1111 . .41A; • r 'rt — 'P' - . NORTH SIDE OF EXISTING HOTEL FACING SOUTH AT 21ST STREET WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUA'ION Page 77 of 358 PHOTOGRAPHS 9 s r i ' I • y , , rig _. I ,,_ • . ;, - ■ ■ . II -- ;:_ . di4 V '\\:). -. VIEW EAST ALONG 21ST STREET ROAD SEGMENT (HOTEL TO RIGHT) F` ,. ,r...„ , , w - ... , , 'h r• . ir, p! 11111 VIEW WEST ALONG 21ST STREET ROAD SEGMENT (HOTEL TO LEFT) WALTER DUKE +PARTNERS COMMERCIAL REAL ES'-.'F VAL llAT ION Page 78 of 358 PREMISES OF THE APPRAISAL PREMISES OF THE APPRAISAL • WALTER DUKE +PARTNERS OMMERCIAL REAL ESTATE VALUATION Page 79 of 358 PREMISES OF THE APPRAISAL 11 Appraisal Format Per the prior agreement between Walter Duke + Partners and the client, this appraisal is presented in a format which conforms to the Uniform Standards of Professional Appraisal Practice(USPAP). Type and Definition of Value The value opinion developed within this analysis is that of Market Value(s) of the subject property and improvements that are legally described in this report as of the currently date of valuation, as defined within the Addenda of this report. Intended Use of the Appraisal This Appraisal Report was prepared for and submitted to the client BHI Miami Limited Corp. for the intended use of valuing the development rights of the area sought to be vacated by the City. We understand that it will be submitted by BHI Miami Limited Corp to the city as part of its application to vacate the 21st Street Road segment. This report cannot be used by any other person/entity or for any other purpose. Use of this report by others is not intended by Walter Duke + Partners. Neither purchasers nor sellers of the subject property, nor any borrowers, are intended users of this appraisal report and no such third parties should use or rely on the appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. Terms and Definitions Real Estate and Appraisal specific terms are defined within the Addenda of this report. Property Rights Appraised The property rights appraised for the apartment are all of those rights in the fee simple development rights released by roadway vacation. These terms are defined in the Addenda of this report. Date of Appraisal Per the clients request the effective date of this appraisal is November 11, 2020. Date of Report The date of the report is November 25, 2020. WALTER DUKE +PART NERS cp4*.r,,'A_PEAL S'ATE vAC'.!4`.CN Page 80 of 358 PRESENTATION OF DATA PRESENTATION OF DATA WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 81 of 358 PRESENTATION OF DATA 13 Property Identification • The subject of this appraisal is a 6,736 SF segment of 21°' Street located at the corner of Miami Beach Drive, just east of A-1-A in the City of Miami Beach. • Situated on the north side of the existing Seagull Hotel, the parcel is presently improved as a paved roadway. • The owner of the Seagull Hotel is planning a major redevelopment of the hotel and as part of the redevelopment process the owner is interested in acquiring the rights to the subject property in order to enhance available F.A.R. to the existing hotel. • The RM-3 zoning of the subject site would permit additional F.A.R. of 2.0 or 13,472 SF of additional building area to the hotel renovation. • According to the client, the additional F.A.R. will primarily be utilized to create larger hotel rooms but will also allow the owner to expand amenity areas such as the proposed spa, lounge and restaurant amongst others. • The room count of the new hotel would decrease from the existing 172 rooms to 104 rooms which is consistent with zoning that does not permit hotel expansions to increase the number of rooms. • The hospitality market in Miami Beach is current in distress due to the impacts of the global pandemic. Scope of Work The scope of work performed in a real estate appraisal is a description of the amount and type of information researched and the analysis applied in an assignment. Based upon the engagement letter dated September 22, 2020 the scope of work for this assignment is as follows: Property Identification The subject property was identified by the engagement letter and street address as provided by the client. Property Inspection Although not required by USPAP, the subject property was visually inspected by Andrew S. Rolf, MAI on November 11, 2020. Walter Duke did not personally visit the subject property. Type and Extent of Data Research General— WALTER D_UKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 82 of 358 PRESENTATION OF DATA 14 • Improved sales comparables were obtained through a search of the data- services that categorize public records. • Data sources included CoStar.com and LoopNet.com, two (2) of the largest and most reliable on-line data-services available in South Florida. • The appraisers performed research necessary to produce the most current and relevant data available for the assignment. • The physical characteristics of the sales were ascertained by a combination of public records, physical inspection, appraiser's files, listing information, verification with buyers, sellers, brokers and records contained in the Property Appraiser's Office. • The reported sale price was verified by examining the Florida Documentary Stamp Tax posted on the deed and by telephone verification with a party familiar with the transaction. A search and analysis of comparable rental properties located in the subject submarket was conducted. Building information was derived from a combination of public records, owner's representative, brokers, personal inspection or appraiser's files. Specific— • The Southeast Florida Region was searched for comparable sales. The geographic parameters of the research are consistent with the investment market in which the subject competes. o Sales of development sites located in Miami Beach and surrounding coastal areas. o It is simply too early in the pandemic, to determine the full impact on hospitality real estate long-term but short term, there has been a dramatic short-term negative impacts. Analysis Applied to Arrive at Opinion or Conclusions The Sales Comparison Approach was applied to develop a credible opinion of value. Property Information Walter Duke + Partners also performed research necessary to produce the most current and relevant data available for the assignment. This includes tax and assessment information, easement and other private as well as public deed restrictions, zoning and history of the property. Other items relative to the subject property were provided by the property contact and prior appraisal, which is assumed to be correct. These items include: WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 83 of 358 PRESENTATION OF DATA 15 1. Survey, site plans and buildings plans 2. General property information including current development plans For the purposes of this appraisal, this information is assumed to be accurate, factual and correct. Extraordinary Assumptions/Hypothetical Conditions Extraordinary Assumptions—None Hypothetical Conditions—None Street Address 100 21s' Street Miami Beach, Miami-Dade County; Florida 33139 Legal Description Presented in the addenda. Owner of Record BHI Miami Limited Corp. 1521 Alton Road, #403 Miami Beach, FL 33139 Source County Public Records Property History • According to the public records the Seagull Hotel property was previously acquired out of bankruptcy proceedings in January 2018 for $20,741,900 (OR Book/Page 30846/2361). • The current owner acquired the Seagull Hotel in January 2020 for $120,000,000 (OR Book/Page 31780/1013). • According to the client, the Seagull Hotel was placed under contract in the summer of 2019. The purchase price was $120 million. At closing, the existing lease and option to purchase the property, which were encumbering title to the property, and held by the tenant managing the property, were bought out with a portion of the closing proceeds. This allowed the client to purchase the property free and clear of encumbrances. • As part of the renovation the owner has discussed with the city of Miami Beach the vacation of the 21st Street Roadway Segment along the north side of the hotel. WALTER DUKE+PARTNERS COMMERCIAL REAL ESTAtE VALUATION Page 84 of 358 PRESENTATION OF DATA 16 • The vacation of the 21st Street Roadway Segment would allow the owner to incorporate 6732 SF of additional land into the lot size there by allowing an additional 13,472 SF of additional building area in the hotel renovation. • It should be noted that an abstract of title was not examined by the appraisers. Pending Sale and/or Listing As of the appraisal date the owner of the Seagull hotel is applying for the vacation of the 21st Street Roadway Segment and negotiating the public benefit value of the development rights released to the owner by that vacation. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUAT,ON Page 85 of 358 PRESENTATION OF DATA 17 COVID-19: IMPACTS ON COMMERCIAL REAL ESTATE It currently remains impossible to quantify the likely impact on the property market with any reliability. Comparisons with the Financial Crisis of 2007-08 are not necessarily appropriate, given that central banks are working hard to avoid a repeat of the credit crunch that characterized the last downturn. Nevertheless, the speed with which the market adjusted to events a decade ago may represent a "downside scenario" against which to assess potential property market outcomes. The Coronavirus Aid. Relief, and Economic Security (CARES) Act was signed into law on March 27. 2020. It provides economic support for American businesses and individuals affected by the COVID- r4111/• 19 pandemic. The provisions of the Act, known as the COVID-19 • stimulus bill passed by Congress COV I D i g 4 and injected $2.1 trillion (9% of U.S. GDP) directly into the U.S. economy. The spending measures were wide-ranging and involved • II • relief for tenants and owners of commercial real estate. • This round of stimulus was massive. The total value of the stimulus, including new credit facilities created by the law, is $5.6 trillion—almost 25% of U.S. GDP. • Recently Congress also approved an additional $310 Billion to replenish the PPP, for small businesses and sets aside $60 Billion for smaller community banks and credit unions that typically serve small businesses. • Expedited Small Business Administration (SBA) loans was focused on helping small businesses retain employees. • The CARES Act aided every commercial real estate sector. • Since announcing the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) on March 23. there has been a dramatic improvement in liquidity and credit market function. As of May 13, 2020, the Federal Reserve Bank of New York began purchasing shares of eligible U.S.-listed exchange- traded funds in the secondary market Through the SMCCF, and eligible corporate bonds shortly thereafter. Additionally the PMCCF has provided loan and bond financing to U.S. companies with investment grade debt ratings as of late March. The SMCCF and PMCCF are supported by a $75 billion equity investment using funds appropriated to the Department of the Treasury under the CARES Act. $37.5 billion of which was transmitted in late March to the special purpose WALTER DUKE+PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 86 of 358 PRESENTATION OF DATA 18 vehicle established in connection with the SMCCF and PMCCF. Together, they provided up to $750 billion in liquidity and help ensure large employers have access to the credit they need to maintain their business operations and payroll through this challenging period. • In early August President Trump executed an additional round of economic stimulus by executive order this providing unemployment benefits for millions. General Market Condition/Trends/Observations • Commercial real estate transactions have varied depending on asset class. Hotel has come to a complete standstill while retail has slowed dramatically, particularly regarding theatres, fitness centers and restaurants. Roadside hotels are one of the hotel sectors that are showing improvement but convention center and business hotels are still suffering. Office is mixed and a full recovery is not expected until 2024. There is still activity in multi-family but collections are slightly off and expected to increase after the election when most deferrals and anti-eviction policies lapse. The most active property class is industrial and there is still significant transactions and development. • The extent of containment policies being implemented have had a material impact on investment transaction volumes for 2020. The scale of impact depends on three factors that are extremely difficult to predict. For now it looks as if multi-family and industrial has benefitted most from various stimulus and assistance programs. Retail and hospitality have suffered regardless. The impact on office is still playing out. • Owner-occupants are intensely focused on cashflow, particularly those that will see material loss of income due to social distancing and travel restrictions. Landlords have received requests for rent deferrals or reductions and there are on-going challenges around service charge levels in buildings that need to be kept secure and operational, but which tenants may be unable to occupy. Landlord's responses have varied. • Across most sectors and markets, leasing activity has declined in volume compared with pre-crisis expectations. Some transactions have been unaffected while others have stopped all together. Many deals under consideration were delayed and some cancelled. There is currently a heightened sense of uncertainty over the economic and business outlook that has caused all hospitality and most retail deals to be cancelled. Currently, fewer new transactions are being 1i initiated, and some expansion plans have been put on hold. . Clearly, the extent of this slowdown has been highly variable WALTER DUKE+PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 87 of 358 PRESENTATION OF DATA 19 across markets and will depend on how the economic impacts of the virus play out. • In the development market, it remains to be seen whether higher commodity prices will impact construction activity. Construction costs are already elevated in the U.S., and in the U.K., where Brexit-related labor shortages are a further threat, such that development margins are reduced. Disruption to Chinese raw materials could delay or defer construction orders, particularly if local-sourced alternatives prove more expensive. In areas where construction starts are up it is mainly due to single family residential construction which is surging. • The impact on rents is impossible to quantify until there is a clearer view of the underlying economic impact of the current crisis. Given that the disruption is expected to be severe and not as short term as originally expected — activity returning to 'normal' will vary across asset classes and locations. Any impact on rents is expected to be similarly short-lived unless the downturn has done structural damage to particular areas of demand such as hospitality, and retail. Most expect 2021 to be a painful recovery in the commercial real estate market. • From a valuation perspective, there is a not a one-size fits all solution. The impacts from COVID vary from asset to asset and from market to market. Analysis needs to be considered on an individualized basis. Clearly the most impact will be felt in the hospitality and retail sectors. Lesser impacts are being felt in the industrial and multi-family sectors. That may change for multi-family when rental assistance runs out. Office assets vary from use to use. Multi- tenant urban high rise office buildings in dense urban areas will be more detrimentally impacted than suburban or owner occupied offices. The Bottom Line • A sharp drop in economic activity produced by necessary public health mandates has been met by a massive fiscal and monetary stimulus of unprecedented scale. By preserving the supply side of the economy, the CARES Act will enable a faster recovery. Additional stimulus is currently being considered. • To be sure, severe economic dislocations are underway. However, the CARES Act will broadly initially eased financial pressures but may not lay the foundation for a healthy recovery as initially expected. • Though timing will vary somewhat particularly across property types commercial real estate market fundamentals will reflect the short-term weakening in the economy, followed by a recovery heading into 2021 depending on the property type., class and location. A.. mai WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 88 of 358 PRESENTATION OF DATA 20 • Governments and central banks around the world have taken similarly robust measures. These responses will complement U.S. efforts by boosting the global economy and improving the medium-term outlook for domestic activity. Source Nater Duke*Partners, CBRE. Avison Young, Newmark Frank. Wall Street Journal. Cushman&Wakefield WALTER DUKE +PARTNERS COMMERC;AL REAL ESTATE vALUATiON Page 89 of 358 PRESENTATION OF DATA Site Description A summary of the details of the sites comprising the subject is presented in the next table: Physical Characteristics 21st Street Site Area- Sq.Ft. 6,736 21st Street Site Area-Acres 0.155 SegauH Hotel Site Area-Sq.Ft 58,361 Segaull Hotel Site Area-Acres 1.340 Total Site Area-Sq.Ft. 65.097 Total Site Area-Acres 1.494 Primary Street Frontage 21st Street Water Frontage Atlantic Ocean Zoning Classification RM-3 Zoning Authority Mame Beach Adjacent Land Uses-North Public Park Adjacent Land Uses-South Setai Hotel&Resort Adjacent Land Uses-East Atlantic Ocean beach Adjacent Land Uses-West Setai Hotel&Resort Flood Panel Map 12086C0317-L Panel Map Date Septernber 11, 2009 Flood Zone: AE, X Topography Generally Level&At Road Grade Vehicular Access At Abutting Roadway Drainage Appears Adequate Easements No detrimental easements noted Encroachments No detrimental Encroachments Noted Deed Restrictions None noted Source: Site survey and property inspection tUtilities Provider Water/Sewer Miami Beach Electricity Florida Paw er&Light Natural Gas Local Provider Telephone AT&T Trash Removal Local Provider Comments The subject sites area were taken from surveys provided by the client and is assumed to be correct. The sites are rectangular shaped, near road grade with its abutting roadways and appear to have adequate drainage (the property was viewed subsequent to a heavy period of rainfall). No easements or encroachments were noted during the appraisers' inspection that would adversely affect the marketability or development capability of the property. However, a survey and title search are recommended for proper determination. The WALTER DUKE +PARTNERS A A'_ES'A'- V+..JA"'ON Page 90 of 358 PRESENTATION OF DATA 22 appraisers cannot guarantee that the subject property is free of encroachments or easements. Common ingress and egress was noted with adjacent buildings and parking lots. A Phase I ESA was not provided for the subject property. The value estimated for the subject is predicated on the assumption that no hazardous substances or environmental conditions are present that may affect the value of the appraised property. The appraisers did not observe any signs on this portion of the property that would indicate this situation. However, the appraisers are not professionally qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. The appraisers' conclusions of value are based upon the assumption that there are no conditions that are either hidden or not apparent that may impact upon the subject property's development capability (to its highest and best use). The appraisers recommend that due diligence be conducted through the local building department or municipality to investigate the property's development capability, and whether the property is physically suitable for its intended use. The appraisers make no representations, guarantees or warranties of the development capabilities of the site. Zoning Description Zoning - The subject is zoned "RM-3"or Residential Multifamily, High Intensity District of the City of Miami Beach. The district is designed to support high intensity multiple-family residences and hotels. The main permitted uses in the RM-3 district are single family detached dwellings, townhomes, apartment hotels, hotels, hostels and suite hotels. The site is also located within the Miami Beach Architectural Historic District Overlay which has a maximum of F.A.R. of 2.0. Primary lot and building restrictions under this zoning designation is summarized below: WALTER DUKE +PARTNERS :70,1•14C.At PA, FS'.1'F VA'.14';ON Page 91 of 358 PRESENTATION OF DATA 23 Zoning Designation RM-3 Mnirrum Lot Size(Sq.Ft.) 7,000 Mnirrum Lot Width 50 Feet Maximum Floor Area Ratio Lot area<45,000 SF 2.25 Lot area>45,000 SF 2.75 Oceanfront Lot area>45,000 SF 3.00 Oceanfront Lot Arch District 2.00 Yard Setbacks: Front 20 feet Side 5 feet Side Interior 5 feet Rear varies Minimum Multifamily Unit Size(SF) 550 muttifarrily Average Multifamily Unit Size(SF) 800 rnuttifarnty Platting-The site is also platted. Land Use - Land Use RM-3 FLU designation commensurate with the underlying zoning code. Summary —The subject is adequately zoned and platted to accommodate office, hotel, multi-family or mixed-use development. The building height has different regs within architectural district; also minimum hotel room size is different within the Collins Park District. '41111111, �f .419" 00 '4041114 .rPli ''-' • - 11° .°14f 4111.111111t10. . ' 4111, 41111411111 1 110.1112—r z r a iiiimarier S WALTER DUKE +PARTNERS C^'WE2C A.REAL ESTA'E VA. ,Ar ON Page 92 of 358 PRESENTATION OF DATA 24 Zoning Map AAs mF t • 4111111111104... 4111P JP 1 4111111111111 • Land Use Map Market Participants/Most Probable Purchaser • The subject interacts within the southeast Florida real estate market and Miami Beach in particular. The concept of Market Value relates to the price a typically motivated buyer would pay for a property. • Based on the highest and best use of the property the most probable purchaser of the subject is the adjacent hotel owner. Credit Market Yields /Capital Markets Monetary Rates Nov-20 May-20 Nov-19 Prime Lending Rate 3.25% 3.25% 4.75% Fed Funds Rate 0.08% 0.04% 1.55°! Three Month Libor 0.22% 0.54% 1.89% U.S. Treasury Rates Nov-20 May-20 Nov-19 ,Three Month T-Bill 0.09% 0.12% 1.52% Six Month T-Bill 0.11% 0.12% 1.55% 10 Year Note 0.87% 0.64% 1.73% 30 Year Bond 1.63% 1.27% 2,21% Source:Bloomberg, Treasury.gov,Global-Rates.com WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 93 of 358 PRESENTATION OF DATA 25 Marketability In order to determine the marketability of the subject property, a SWOT analysis has been undertaken. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are internal to the subject and deal with what a property can and cannot do. Opportunities and Threats are external forces that cannot be controlled directly by the subject but the subject can adapt to external factors. Factors serving to affect the desirability and marketability of the subject include: Strengths • Prime location in Miami Beach with direct ocean and city views • Located in an area experiencing significant residential and commercial development/re- development. It is one of the premier submarkets in the nation. Weaknesses • The property is in the shadow of the Seta,which abuts the property. Opportunities • Assembling street segment site with adjacent hotel site and developing to highest and best use. Threats • COVID-19 impacts on international travel and tourism • National political climate Exposure Time Exposure time (see definitions in the Addenda) is a historical event, which, according to the definition of Market Value, precedes the effective date of the appraisal. Given the demand for investment grade projects and the limited supply of attractive properties offered for sale, marketing times tend to be six months for properly priced assets. In recent years, brokers reported that high-density development sites in urban locations generate many offers as soon as marketing begins. Based upon information compiled in the Sales Comparison Approach to Value section and interviews with market participants, a reasonable exposure time for the subject property "As Is" is estimated to be 6 to 12 months. Therefore, the market value estimate set forth in this report represents an exposure time of no more than 12 months. Reasonable Marketing Time The reasonable marketing time represents the most probable time required to expose the subject property on the open market to consummate a sale at a market level price. Based upon interviews with market participants, marketing time is a difficult variable to WALTER DUKE +PARTNERS ,nr..MEJC..A'. SEA. ES'A'E ✓A_�4T^v Page 94 of 358 PRESENTATION OF DATA 26 estimate. Participants interviewed within the course of this report indicated that marketing time is a direct function of price and exposure. These variables are interconnected and cannot be estimated independently. Fundamental economic theory indicates that value and marketing time are directly related, and must be estimated simultaneously in order to be meaningful. Based upon this information, the Reasonable Marketing Period for the subject property is projected to be 6 to 12 months. In accordance with Advisory Opinion AO- 7 issued by the Appraisal Standards Board of the Appraisal Foundation, the estimate of marketing time is not intended to be a prediction of a date of sale. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 95 of 358 ALALYSIS OF DATA ANALYSIS OF DATA WALTER DUKE +PARTNERS -.. _ AL REAL ESTATE VALUATION Page 96 of 358 ANALYSIS OF DATA 28 The Appraisal Process The appraisal process normally gives consideration to the "three approaches" as they are typically referred to. They include the Cost Approach, the Sales Comparison Approach, and the Income Approach. The Appraisal of Real Estate, 14th ed., 2013, outlines the mechanics of each approach as follows Sales Comparison — Sales of similar, vacant parcels are analyzed, compared, and adjusted to provide a value indication for the land being appraised. Allocation — Sales of improved properties are analyzed and the prices paid are allocated between the land and the improvements. Allocation can be used in two ways: to establish a typical ratio of land value to total value, which may be applicable to the property being appraised, or to isolate the value contribution of either the land or the building from the sale for use in comparison analysis. Extraction — Land value is estimated by subtracting the estimated value of the improvements from the known sale price of the property. This procedure is frequently used when the value of the improvements is relatively low or easily estimated. Subdivision Development—The total value of undeveloped land is estimated as if the land were subdivided, developed, and sold. Development costs, incentive costs, and carrying charges are subtracted from the estimated proceeds of sale, and the net income projection is discounted over the estimated period required for market absorption of the developed sites. Land Residual Technique — The land is assumed to be improved to its highest and best use. All expenses of operation and the return attributable to the other agents of production are deducted, and the net income imputed to the land is capitalized to derive an estimate of land value. An alternative land residual technique is applied by valuing the land and improvements and deducting the cost of the improvements and any entrepreneurial profit. The remainder is the residual land value. Ground Rent Capitalization — This procedure is used when land rents and capitalization rates are readily available such as in well-developed areas. Net ground rent, the net amount paid for the right to use and occupy the land, is estimated and divided by a land capitalization rate. Either actual or estimated rents can be capitalized using rates that can be supported in the market. This procedure may be seen as an extension of sales comparison but, where applicable, it provides a specific unit of comparison. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 97 of 358 ANALYSIS OF DATA 29 All of these techniques have been considered for purposes of our analysis. However based on the subject property types and the availability of comparable data, the Sales Comparison Approach has been used to estimate the value of the subject property at its highest and best use. WALTER DUKE +PARTNERS COMMERC,AL REAL ESTATE VALUATION Page 98 of 358 ANALYSIS OF DATA 30 Highest and Best Use The definition of highest and best use (see glossary in the Addendum) implies recognition of the contribution of specific use to the community environment or to community development goals, in addition to wealth maximization of individual property owners. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (Market Value), another appropriate term to reflect highest and best use would be most probable use. In the context of investment value, an alternative term would be most profitable use. Highest and Best Use As Vacant Highest and best use must meet four criteria: Legal Permissibility, Physical Possibility, Financial Feasibility and Maximal Productivity. Walter Duke + Partners has analyzed the criteria with regard to the subject site as follows. • Legally Permissible The most significant legal constraint to land use is zoning, which specifies the type and intensity of land use. Zoning laws are designed to allow for the orderly development of communities rather than permitting a disorganized sprawl. The goal in general terms is to provide for comparable neighboring land uses, coordinate the development of primary infrastructure and reduce the overall cost of providing the necessary services to the community. The hotel site is zoned RM-3, Residential Multifamily High Intensity District by the City of Miami Beach. This district allows for a wide variety of residential and hotel uses. The subject is located within the City's Historical Architectural district; which requires the preservation of Art Deco or other architecturally-significant building structures and/or facades that are in place at any property. • Physically Possible The subject street segment contains 0.16 acres and is rectangular shaped. Public utilities are available to the site. Ingress and egress are adequate. Overall, the subject site appears to be physically capable of accommodating any of the legally permitted uses of the site. • Financial Feasibility Financially feasible uses are the logical uses that are physically possible and legally permissible that will produce any net return to the owner of the site. Among uses considered to be financially feasible, there is generally a use that provides the criteria WALTER DUKE +PARTNERS WEAL ES-A'F VAL'_-A"CV Page 99 of 358 ANALYSIS OF DATA 31 to meet a highest rate of return or value, considering it to be the highest and best use of a site. The most feasible use of the subject as of the appraisal date is to assemble the site with the adjacent site to the south for future hotel development. • Maximum Profitability Maximum profitability deals with the use that will produce the greatest net return to the owner of the site over a given period of time: it is also the highest and best use of the site as vacant. Over the long term, a high intensity mixed-use project with residential units is considered to be the maximally productive use for the site of the appraised property. The most-feasible use of the subject, given its size assemble the site with the adjacent site to the south for future hotel development. Timing for such a project is likely the next development cycle but could be longer due to the uncertainties surrounding COVID-19. The South Florida region has many positive fundamentals, particularly its long-term population growth and established tourism industry, which should assist in the eventual recovery of underperforming market sectors. South Florida offers a warm local climate and a well-established base of attractions for leisure guests. The region's geography also provides natural barriers to entry that will continue to limit new development over the long term. The hotel submarket in which the subject would compete has slowed from COVID-19 but market participants do not expect the downturn to be permanent. Highest and Best Use As Improved Once a parcel of land is improved with a building, the two parts form an integral unit and, for all practical purposes, they are all inseparable. However, when the market value of the land alone, if vacant and available for use, exceeds the value of the property as improved, the improvements are no longer a viable contribution to the property and a new use must be adopted. In analyzing the highest and best use of the property as improved, several principles of real estate values must be considered. They include conformity, supply and demand, change and balance. The subject's location is considered to possess excellent long-term potential for hotel development due to adjacent uses and locational attributes. Therefore, the subject's highest and best use as improved is considered to be synonymous with the sites highest and best use as vacant. WALTER DUKE +PARTNERS RE1,E5-A-E Page 100 of 358 ESTIMATE OF SITE VALUE 32 Estimate of Site Value The valuation of similar properties is generally accomplished by searching for sales of properties with a similar highest and best use as the subject, examining the motivations behind the purchase, reducing the sale prices into value indicators. comparing each sale with the appraised property and reconciling the comparisons into a final value estimate. In the previous Highest and Best Use section of this report the appraisers have determined that the property's Highest and Best Use As If Vacant is for assemblage for hotel expansion. According to brokers, developers and market participants, the proper value indicator of land with a similar highest and best use in this region is the sale price per building area. This unit of comparison allows potential developers (buyers) of these properties to analyze the total cost of development based on the density of potential development. In this analysis, projects with wide variances in potential density will exhibit a wide range of site prices per unit, which is skewed by the potential development density. Conversely. if the total cost per square foot of building area (including land) exceeds the rents that may be obtained in the market, then a prospective buyer/developer will not be motivated to purchase a given property for its development potential. For purposes of this analysis, Walter Duke + Partners examined numerous sales of development sites in urban infill locations throughout the South Florida region. These included sites that encompass the range of development densities similar to the subject and were purchased for similar uses that are presented as follows- WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 101 of 358 ESTIMATE OF SITE VALUE 33 BYickeU/Miami C190 Site Sales Sale Date Lot-SF No.llnits Price Prlce/SFSite Price/Unit 131its/Acre Waterfront 400 0/scay'e Blvd '/18/2018 50.244 941 555 300.000 $1 094 66 558 449 81 S 9 No 15 SE 10th Street 9/26/2017 5.956 WA 516,180.200 $2,716.52 WA WA No 1399 SW 1st Avenue 8/11/2017 4.575 WA 531750.000 5712.28 WA WA NO 90 SW 8th Street 7/19/2017 21,210 WA $29,450.000 51.388 50 WA WA NO 700 N Mani Avenue 3/3/2017 204732 1.700 545.000.000 5219.80 S26 471 381 7 NO 1428 5nckee Avenue 11192017 49,983 WA 550,000000 $1.000.34 WA WA NO 115 SW 8th Street 1/19/2017 28 856 '32 518 400 000 5637.43 5 139 394 199.2 NO 1021 SW 1st Avenue 212312015 22.770 445 526.000.000 51.141 85 558.426 97 851.3 rb 1420 S Slam Avenue 12/262014 121.259 1.390 $74 740.000 5816.37 153 770 499.3 No 300 Biscayne Blvd. 1 58x2014 103 791 1,557 580.000 000 5770.78 $51.381 653 5 Nb 255 SW 11th Street 11/52014 81.146 372 520.225,000 $249.24 554.368 199 7 N0 300 Biscayne 8or/everd Way 7/1472014 54.450 1 250 S125 X0.000 52 2•95 68 5100 000 1000 0 Yes 86 SW8th Shed 3/15/2014 28 000 438 516.750.000 5598.21 538.242 881 4 Nb 1451 Brickel Avenue 7/12/2013 26180 180 525 00o.ocio 5954.93 5138.889 299.5 N3 850$ Mam Avenue 613/2013 80,000 690 532.000 000 5533.33 546,377 500.9 No 1300 S.Maim Avenue 10/24/2012 55.919 583 518.500.000 5330 94 531 732 454.1 No 1060 Becket Avenue 5/222012 42.290 328 517 37C 000 54'0 74 552 957 337 9 No Edgewater Eike Saks Sate Date Lot SF No.Units Price PricetSf Srte Price/Unit Units/Acre Waterfront SEC 29th Terr&4th Ave 5/20/2019 50 965 174 513.550 000 5267.63 576.48 148.7 Nb 412/438 NE 22nd Street 2/42019 88 295 296 529,600,000 1335 24 5100 000 146.0 Yes 459 5W 74th Street 5/6/2017 86 684 297 521.700.000 $250 33 173.064 149.2 Yes 2701 Biscayne Blvd 5/5.2016 89 873 330 530.000000 5333.80 $90 909 1599 Yes 475 NE 32170 Street 4262013 88.917 299 122,500.000 5253.04 575.251 146.5 Yes 601 NE 3015'e"ace 4/4/2013 197.257 678 579.000 000 $147 02 542 773 149 7 Yes Miami Waterfront Site Sales Sale Date Lot SF No.Unite Price Price/SF Site Price/Unit Units/Acre Waterfront 8995 Corans Avenue 12/1/2015 26 500 58 S55 000 000 S2 075.47 5948.276 95.3 Yes 6747 Coins Averue 10/1512015 41 624 13 538 500 000 5924 95 52 961 534 138 Yes 8955 Cans Avenue 814/2015 31,533 50 540.000.000 11,268.51 1800 000 89.1 Yes 18801 C ll is Avenue 11/6/2014 200.375 490 5124 250.000 5620.08 5253.571 106 5 Yes 690'Coins Avenue 4/92014 40,651 27 526.000,000 5639.59 5962.963 28.9 Yes 18975 Clans Avenue 47712014 139,392 300 S82 000,000 5588.27 5273,333 93.8 Yes 6747 Collins Avenue 1/31/2014 41.824 13 521,000,000 5504,52 51,615385 13.8 Yes 8800 now,Creek Dive 1/13/2014 45.275 80 511,250,000 524311 5140.625 75,3 Yes 17141 Coins Avenue 9/4/2013 32,000 68 530,000.000 $93750 541,176 92.6 Yes 6610 hdian Dees Dive 8/212012 79.050 115 $9,154,000 9115 80 579.600 63 4 Yes 3425 Coins Avenue 8/9/2013 55200 63 1100,000.000 11,811 59 51 587.302 49.7 Yes 10201 Coins Avenue 6/11/2012 240,887 239 5220,000.000 591129 5920 502 43.2 Yes 18901 0bans Avenue 4116/2012 108,317 192 565.000 000 5600 09 5338.542 772 Yes 17141 Coins Avenue 31122012 32,003 64 120.000000 562500 1312.500 87.1 Yes 19505 Col.'s Avenue 3/-42/2011 49,830 39 524.300.000 5481.64 5615 385 34.1 Yes R.Lauderdale Site Sales Sale Date Lot SF No.Units Price Price/SF Site Price/taiit Utlts/Ane Waterfront 200 5 Federal l4c nw a/ 1/16/2018 137.660 456 533.000,000 $239 74 572 368 14 3 No 200E.as Olds 12/14/2017 61298 380 117000.000 1277 33 $4.737 270.0 River 725 N Ft Lauderdale Beach Blvd 92772017 70,575 WA 123,600,000 1334.40 NA WA Yes 1350 5 ocean Boulevard 8/10/2017 155,509 211 115.825.000 1101.76 575.000 59.1 yes 2150 SE 17th Street 7/11/2017 456.711 WA 548.000 000 $105 10 WA WA ves 790 E Rrow and Boulevard 5/3/2017 83.200 329 119.500,000 5234 38 559 271 1723 53 435BayshaeErne 8/11/2015 33.964 31 513 470,000 $39636 5434,516 39.7 Yes 315 N Bach Road 5/52015 27,443 22 $10 000,000 $364.39 5454.545 34.9 YeS 2000 S.Ocean BNd. 10/24/2014 56,705 64 538.000,030 $870.13 1593.750 49.2 Yes 730 N Ocean Boulevard 5/16/2014 91,067 79 510.500.000 5115.30 $132.911 37.8 Yes 700 Bnny Avenue 3/1772014 30.170 13 53 690.000 5122.31 5283 846 18.8 Yes 700 N 4-1-4 4/5/2013 65860 95 $20,000,000 5232.94 1210.526 48.2 Yes Palm Beach Site Saks Sale Date Lot SF No.Units Price Price/SF Site PricelUrit tints/Acre Waterfront 456 S Ocean Boulevard 4182018 36 312 4 526 300 000 5724 29 56.575,000 4 8 Yes 419.eke view Avence 11/20/2015 139.961 475 124.000.300 1'7.48 550 526 147.8 rb 2121 F1ag!en Doe 5/19/2015 314.503 NA 531000.000 598 57 WA WA Yes 1101 Ftagler Dive 7/31/2014 139,883 59 121.000.000 5150 13 5304,348 21.5 Yes 550 Cuadrile Boulevard 3/1172014 148.975 WA 515.000.000 5100,69 WA WA NO 5750 Flask,'Doe 11/8/1013 236.631 153 57650 000 532 33 550.000 28.2 Yes MIMMUM/ - 5,956 4 13,680,080 132.33 $26,471 4.8 - MAXIMUM -. 456,711 1,700 1220,000,000 82,71462 16,675,000 1,000.0 -- AVE5AGE - 90,626 339 536,991,146 5806.67 1477,145 203.6 - MEDIAN - 68,353 202 525,500,000 1446.18 $114456 100.9 - SMELT 66,097 104 WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE./- Page 102 of 358 ESTIMATE OF SITE VALUE 34 Of the verified "arm's length" transactions examined. five (5) properties were considered similar to the subject site with regard to their intended use of mixed-use development sites in this market. These sales reflect unadjusted value indicators ranging from $169 to $641 per square foot of permitted building area. A Comparable Vacant Land Sales Summary Table is presented below, with a location map on the subsequent page. Profiles of the comparables are presented in the Addenda to this report. Comparable Vacant Land Sales Summary Table SUBJECT' SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 r` n „r t Rop.ID No. 3121 2812 3005 3004 2944 LOCATION: 100 21st 6747 Collins 304 Ocean 18320 Collins 550 9th 1135 103rd Street Avenue Drrve Avenue Street Street AREA: Man Beach Mame Beach Mam Beach Sunny Isles Mari Beach Bay Harbor SALE DATA: Cash Eguiv Sale Prce --- $38 000.000 510,000,000 $31,700,000 5'7,625,000 $20.500,000 Sale Date -- Aug-19 Dec-18 Oct-18 Jan-18 Nov-17 Financing -- Cash Sale Cash Sate Cash Sale Cash Sale Cash Sale Sate Price/SF --- $913 $870 $856 5644 $389 Sale Rice/Bldg Area --- $406 $490 5248 $641 $169 Panned Use Hotel Future Future Future Future Future Expansion Hotel Condos Developrrent Hotel Condos PHYSICAL DATA: Net Size-Acres 1.49 0.96 0.26 0.85 0.48 1.21 Net Size-SF 65,097 41,625 11,500 37.054 20,873 52.866 Saleable Be Area 130,194 93,656 20.400 127.836 27,500 121,000 Grade Road Grade Road Grade Road Grade Road Grade Road Grade Road Grade Site Conditions Vacant Vacant Vacant Vacant Vacant Vacant FrontageNiew Atlantic Ocean Atlantic Ocean Landlocked htracoastal Landlocked Intracoastal Frontage Feet' 126' 125' WA 350' WA 350' Zoning RM-3 RM-3 RPS-3 8-1 CD-2 RM-3 Platted/Approvals Yes/No Yes/No Yes/No Yes/No Yes/Yes Yes/No ERCs Buyer Buyer Buyer Buyer Buyer Buyer trrpactFees Buyer Buyer Buyer Buyer Buyer Buyer Utilities AA to Site An to Site An to Site An to Site AI to Site All to Site The most appropriate method to value the subject property is direct comparison with like property sales. However, a comparative analysis is necessary to extract differences, if any, in the features and attributes that differentiate the sales from the subject. In the following pages, comparable sales are summarized and a discussion of the various factors that may affect value is set forth. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 103 of 358 ESTIMATE OF SITE VALUE 35 Comparable Land Sales Location Map 8171 —1 V*st Perky R� - e R D •441'- _ 4 - 8otden isles Lake i(� � . 4arQens I e _- Holl u cid .. X 852.— "•�11 T 7 it..._t SVn Swept Isles ,A11 4 LakeLucexner e � iA.venture II I Andover •f Estates P ;mutes 4.a''ess ; irtaflit 1 Golden Beech t " -� .48541 ops. 56 Carol I -_.-- 1 1 • I' Sunny Isles e'`ale „— -1 ' unche P., t * B' , _kit Glades f a :'Slscayn r a ' l' i rin.i. cue' n: ppp ,II �MNoheh6are. ,t -1 sem: North BiDL 9 Miami yan Her �! �. I i I Park Sur1stde {i ± Indian Creek' V Lam Vilage r __, { P Comes .... ""÷o. ., ..: es •..Ptdrk 915 m k-�� !unit r 1 Noah 40 953 1 VillageIran Olt d ' ' 9z -. 0. 944 N I '4at A 8iscayneBay � i '` 112 e SUBJECT t iie=q9411 ` I -may 80 I; 7 Bay A4U71dt . 1 - 933 `I Preserve -`�' \ ------4 f [l WILI Ides War 2 • -- SMA e — � USCeausaway Island 411 '1 Fisher Island Silver Blurt allleSa 972 dam D!y •iphts Th*Pmts -- Virginia Ooear,\,,,••• Ken, i South pay tistatgs' Ne,ghts WALTER DUKE +PARTNERS —_-- COMMERCIAL REAL ESTATE VALUATiO•. Page 104 of 358 ESTIMATE OF SITE VALUE 36 Property Rights Conveyed No adjustments necessary. Financing (Cash Equivalency) No adjustments necessary. Conditions of Sale (Motivation) No adjustments necessary. Market Conditions (Time) The Comparable Sales occurred prior to the onset of COVID-19. The hospitality sector has been one of the most impacted by COVID-19 and the ongoing government mandated shutdowns. Therefore, the Comparable Sales are adjusted downwards to reflect the ongoing pandemic and how the pandemic will continue to impact commercial real estate particularly the hospitality sector. Location The subject property is located within the City of Miami Beach with direct frontage on the Atlantic Ocean. The location in the Mid Beach neighborhood which is home to many of the luxury hotels in Miami Beach is excellent. With regards to location, Sales 2 and 4 are located in the South Beach neighborhood and deemed similar to the subject. The remaining sales are in less desirable neighborhoods or locations deemed inferior to the subject and adjusted upwards. Zoning. Platting and Development Approvals All the comparable properties and the subject are zoned for similar uses, with a highest and best use for development of a condo project. No adjustments for zoning were necessary. As of the appraisal date, the subject property does not possess approvals for development. Therefore, Sale 4 is adjusted downwards to account for the time: cost and risk in securing development approvals. Site Conditions As of the appraisal date, the subject site is generally vacant with only street scape improvements. Sale 4 was improved at sale, but the building shell will remain and thus the sale is deemed like the subject. No adjustments were necessary. WALTER DUKE +PA RTNERS COMMERCIAL REAL ESTATE VALUATION Page 105 of 358 ESTIMATE OF SITE VALUE 37 Site Frontage and Configuration The total site is rectangular shaped with ±126' of frontage along the Atlantic Ocean. Comparable Sales 1, 3 and 5 are also generally rectangular shaped with water frontages ranging from ±125' to ±350 Sale 1 possess direct frontage on the Atlantic Ocean and is deemed similar to the subject. Sales 3 and 5 possess frontage on Biscayne Bay and are deemed inferior to the subject. Sale 5 is further adjusted for the irregular shape / configuration of the site. The remaining sales are landlocked with no water frontage. Both sales require upward adjustments for lack of frontage though Sale 2 will have some view amenity and is adjusted upward less than Sale 4. Size & Density The total subject site comprises ±1.49 acres. which is just above the range of site sizes exhibited among the Comparable Sales (from 0.26 to 1.21 acres). Normally: an inverse relationship exists between the price per unit of a property and its size. However, in the case of valuable waterfront sites such as the subject and the Comparable Sales the inverse relationship can be negated due to building height restrictions. No adjustments for size or density were deemed necessary. Reconciliation of Land Value Comparable site sales from the subject's South Florida market were analyzed. Differences between the comparable sales, including location, market conditions and site conditions permitted the extraction of percentage or dollar-amount adjustments that could be applied in order to derive an indication of Market Value for the subject. WALTER DUKE UK E +PARTNERS COMMERCIAL REAL ESTATE VALUATtON Page 106 of 358 ESTIMATE OF SITE VALUE 38 Comparable Land Sale Adjustment Grid Land Sale No. 1 2 3 4 5 Location: 6747 Collins 304 Ocean 18320 Collins 550 9th 1135 103rd Avenue Drive Avenue Street Street Area: Mari Beach Marti Beach Sunny Estes Marn Beach Bay Harbor Sale Data: Date of Sale Aug-19 Dec-18 Oct-18 Jan-1B Nov-17 Cash Equiv.Sate Price $38,000,000 $10,000,000 $31,700,000 $17,625,000 $20,500,000 Sale Price/SF Site $913 $870 $856 $844 $389 Sate Price/SF FAR $406 $490 $248 $641 $169 ADUSTM B4TS: Market Conditions -15% -15% -15% -15% -15% Adj Price!SF Site 8776 $730- $727 $718 $331 Adj.Price/SF FAR $345 $417 $211 $545 $144 Location 5% 0% 20% 0% 30% Water Frontage 0% 10% 5% 25% 5% Configuration 0% 0% 0% 0% 10% Development Approvals 0% 0% 0% -15% 0% Additional Adjustment 5% 10% 25% 10% 45% Adjusted Price/SF Site $815 $813 $909 $790 $480 Adjusted Pace/SF FAR $362 $458 $263 $599 $209 Adjustments: Price Per Square Foot of FAR • With respect to the price per square foot, the sales provided an adjusted range of $209 to $599 per square foot of permitted FAR, with a median of $362 per square foot and an average of$378 per square foot. • Less weight is given to Comparable Sales 4 and 5 as they represent the oldest sales as well as the high and low value indicators. • Primary emphasis is given to Sale 1 which represents the most recent sale, • required the least amount of physical adjustments and is the median value indicator. • Supporting weight is given to Sale 2 and 3. • Therefore, based on the preceding analysis, the estimated value per square foot of permitted FAR is $375 as of the current valuation date. Calculation of Value Using Value per Square Foot of Bldg. Area (FAR) Value!Sq.Ft. x Sq.Ft.of FAR z Total $375 x 13,472 = $5,052,000 ROUNDED $5,000,000 FIVE MILLION DOLLARS ($5,000,000) WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 107 of 358 ADDENDA ADDENDA WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 108 of 358 ADDENDA ASSUMPTIONS, CONTINGENT & LIMITING CONDITIONS WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 109 of 358 ADDENDA Basic Assumptions, Contingent and Limiting Conditions 1. This appraisal report is made expressly subject to the following assumptions and limiting conditions and any special limiting conditions contained in the report which are incorporated herein by reference. 2. This appraisal represents the best opinion of the appraiser(s) as to Market Value of the property as of the appraisal date. The term "Market Value" is defined in the appraisal report. 3. The legal description furnished is assumed to be correct. The appraiser(s) assumes no responsibility for matters legal in character, nor does he/she render any opinion as to the title, which is assumed to be good. All existing liens and encumbrances, if any, have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management. 4. Any sketch in this report is included to assist the reader in visualizing the property. The appraiser(s) has made no survey of the property and assumes no responsibility in connection with such matters. 5. The appraiser(s) believes to be reliable the information, which was furnished by others, but he/she assumes no responsibility for its accuracy. 6. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client, without the previous written consent of the appraiser(s) or the client, and then, only with proper qualification. 7 The appraiser(s) is not required to give testimony in deposition or in court, or give testimony at a governmental heanng by reason of this appraisal with reference to the property in question, unless arrangements have been previously made with the approval of the appraiser(s). Said arrangements must be prior to 30 days of the anticipated date. Further, the appraiser(s) reserves the right to consider and evaluate additional data that becomes available between the date of this report and the date of trial, if applicable, and to make any adjustments to the value opinions that may be required. 8. No testimony will be rendered unless the entire appraisal fee has been paid Further, all testimony will be subject to expert witness fees previously approved by the appraiser(s). 9. The distribution of the total value of this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 10. The land, and particularly the soil, of the area under appraisement appear firm and solid. Subsidence in the area is unknown or uncommon, but this appraiser(s) does not warrant against this condition or occurrence. Subsurface rights(mineral and oils)were not considered in making this appraisal. 11. The appraiser(s)carefully inspected the buildings involved in this appraisal report and damage, if any, by termites, dry rot, wet rot, or other infestations, was reported as a matter of information by the appraiser(s),but he/she does not guarantee the amount or degree of damage, if any. 12. All furnishings and equipment, except those specifically indicated and typically considered as a part of real estate, have been disregarded by the appraiser(s). Only the real estate has been considered. 13. The comparable sales data relied upon in this appraisal is believed to be from reliable sources, however, it was not possible to inspect the interiors of all of the comparable, and it was necessary to rely on information furnished by others as to physical and economic data. 14. The appraiser(s) has inspected, as far as possible, the land and the improvements thereon, however. it was not possible to personally observe conditions beneath the soil or hidden structural components within the improvements, therefore, no representations are made herein as to these matters and, WALTER DUKE +PARTNERS A.RFA_ FS'A'F '.A. A'nti Page 110 of 358 ADDENDA unless specifically considered in the report, the value estimate is subject to any such conditions that could cause loss in value_ Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements, unless otherwise stated. 15. Disclosure of the contents of this appraisal report is governed by the Bylaws and Regulations of the Appraisal Institute. 16. Unless otherwise stated in the report, the existence of hazardous substances including, without limitation, asbestos, radon gas, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions,were not called to the attention of the appraiser(s), nor did the appraiser(s) become aware of such during the appraiser's inspection. The appraiser(s) has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser(s), however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. 17. The appraisal is as of the date specified and covers the legally described property only. The current purchasing power of the U.S. Dollar is the basis for the value reported. The appraiser(s) assumes no responsibility for economic or physical factors occurring at some later date, which may affect the opinions herein stated. 18. This appraisal is presented as a complete, bound report, and may be considered valid only so long as it is presented in its entirety. Further, all pages listed in the Table of Contents must be present and the appraiser's signature accompanied by the raised seal. 19. Neither all, nor any part of the content of the report, or copy thereof, [including conclusions as to the property value, the identity of the appraiser(s), or the firm with which the appraiser(s) is connected], shall be used for any purposes by anyone but the client specified in the report, the mortgagee or its successors and assigns, mortgage insurer, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency or instrumentality of the United States or any State, or the District of Columbia, without the previous written consent of the appraiser(s), nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales or other media, without the written consent and approval of the appraiser(s). 20. The Americans with Disabilities Act ('ADA") became effective January 26, 1992. The appraiser(s) has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so. this fact could have a negative effect upon the value of the property. Since the appraiser(s) has no direct evidence relating to this issue, the appraiser(s) did not consider possible non-compliance with the requirements of ADA in estimating the value of the property. The appraiser(s) recommends that the entities affected by the Act conduct an "ADA Audit" of the facilities. The ADA Audit should be performed by competent legal professionals who are familiar with the detail and specificity of the Act, in conjunction with architects and engineers versed in its technical requirements. The cost to cure any non-compliant item(s) may serve to reduce the value estimate contained in this report and the appraiser(s) assumes no responsibility for any such condition, nor for any expertise or engineering knowledge required to discover them. WALTER DUKE +P ARTNERS COMMERC,AL REAL ESTATE VALUATION Page 111 of 358 ADDENDA 21. Any projected cash flows included in the analysis are forecasts of estimated future operating characteristics and are predicated on the information and assumptions contained within this report. Any projections of income, expenses and economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of market expectations of future income and expenses. The achievement of any financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary from the projections considered herein. There is no warranty or assurances that these forecasts will occur. Projections may be affected by circumstances beyond anyone's knowledge or control. Any income and expense estimates contained in this report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 22. The analyses contained in this report may necessarily incorporate numerous estimates and assumptions regarding Property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur, therefore. actual results achieved during the period covered by the analysis will vary from estimates, and the variations may be material. 23. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraphs, several events may occur that could substantially alter the outcome of the estimates such as, but not limited to changes in the economy interest rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. In making prospective estimates and forecasts, it is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 24. Acceptance of delivery or the payment for this report constitutes acceptance of this condition and all other contingent conditions set forth herein. WALTER DUKE+PARTNERS COMMERCIAL REAL ESTATE VALUAT'ON Page 112 of 358 ADDENDA DEFINITIONS WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALVAT!OY Page 113 of 358 ADDENDA APPRAISAL DEFINITIONS Absolute net (bond) lease. A lease in which the tenant is responsible for payment of all expenses including but not limited to real estate taxes, insurance, maintenance, utilities, janitorial and structural repairs. The intent of this lease type is that the landlord absorbs no expenses relating to the operation or repair of the leased space. Aggregate of retail values (ARV). The sum of the appraised values of the individual units in a subdivision, as if all of the units were completed and available for retail sale, as of the date of the appraisal. The sum of the retail sales includes an allowance for lot premiums, if applicable, but excludes all allowances for carrying costs. Appraisal. (Noun) The act or process of developing an opinion of value. (Adjective) Of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Client. The party or parties who engages an appraiser (by employment or contract) in a specific assignment. Discounted cash flow(DCF) analysis. The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability: timing, and duration of the income streams as well as the quantity and timing of the reversion and discounts each to • its present value at a specified yield rate. DCF analysis can be applied with any yield capitalization technique and may be performed on either a lease-by-lease or aggregate basis. Effective rent. The rental rate net of financial concessions such as periods of no rent during the lease term, may be calculated on a discounted basis, reflecting the time value of money, or on a simple, straight-line basis. Extraordinary assumption. An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical legal, or economic characteristics of the subject property, or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if. • It is required to properly develop credible opinions and conclusions, • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis: and ■ The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. Fee simple estate. Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Floor area ratio (FAR). The relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g , a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area See also land-to-building ratio. Full service lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real estate taxes insurance, maintenance. all utilities and janitorial. WALTER DUKE +PARTNERS RF4, FS'A'F .4:_.A' .". Page 114 of 358 ADDENDA Going-concern value. 1. The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate, also called value of the going concern. 2. Tangible and intangible elements of value in a business enterprise resulting from factors such as having a trained work force, an operational plant, and the necessary licenses, systems, and procedures in place. 3. The value of an operating business enterprise. Goodwill may be separately measured but is an integral component of going-concern value. Gross lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real estate taxes, insurance, and maintenance, but not tenant utilities and janitorial. Highest and best use. The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four critena the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. Hypothetical condition. That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: ■ Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. Industrial gross lease. A lease in which the landlord is responsible for all payment of all expenses pertaining to base year real estate taxes, base year insurance, and maintenance, but not tenant utilities and janitorial. Tenant is responsible for any increases over base year (first lease year) real estate taxes and insurance. Inspection, property Inspection. In accordance with generally accepted appraisal standards an inspection is the act of touring or viewing a property. It is a cursory or superficial visual observation of the property which is not intended to be confused with an assessment of a building, structure or mechanical systems performed by a professional engineer or general contractor. Intended use. The use or uses of an appraiser's reported appraisal, consuming, or review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment. Intended user. The client and any other party as identified, by name or type, as users of the appraisal, consulting, or review report, by the appraiser based on communication with the client at the time of the assignment. Investment value. The value of a property interest to a particular investor or class of investors based on the investor's specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. WALTER DUKE +PARTNERS COMM6a:A_SEA_FS'A'E VAL..A_.rJN Page 115 of 358 ADDENDA Leased fee estate. An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease. Market value. As defined in the Agencies' appraisal regulations, the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interest; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. Dollars, or in terms of financial arrangements comparable thereto; and 5. the price represents a normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. SOURCE: Interagency Appraisal and Evaluation Guidelines, December 10. 2010, Federal Register, Volume 75 Number 237, Page 77472. Neighborhood shopping center. The smallest type of shopping center, generally with a gross leasable area of less than 100,000 square feet. Typical anchors include supermarkets and pharmacies. Neighborhood shopping centers offer convenience goods and personal services, and usually depend on the market support of more than 1,000 households. Net lease. A lease in which the tenant is responsible for expenses payment of all expenses pertaining to real estate taxes, insurance, maintenance, utilities and janitorial. The landlord is responsible only for expenses relating to structural repairs. Overall capitalization rate (Ro). An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value: used to convert net operating income into an indication of overall property value(Ro= lo/Vo). Personal property. Identifiable portable and tangible objects which are considered by the general public as being -person", e.g. furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment;all property that is not classified as real estate. Prospective value estimate. A forecast of the value expected at a specified future date. A prospective value estimate is most frequently sought in connection with real estate projects that are proposed, under construction, or under conversion to a new use. or those that have not achieved sellout or a stabilized level of long-term occupancy at the time the appraisal report is written. Retrospective value opinion. An opinion of value that is likely to have applied as of a specified historic date. A retrospective value opinion is most frequently sought in connection with appraisals for estate tax, condemnation. inheritance tax, and similar purposes. Scope of work. The type and extent of research and analyses in an assignment. Shell space. Space in which no interior finishing has been installed, including even basic improvements such as ceilings, interior walls and floor coverings. WALTER DUKE +PARTNER S commEQC Al_REAL.ES'A'E VALVA"CN Page 116 of 358 ADDENDA Use value. 1. In economics, the attribution of value to goods and services based upon their usefulness to those who consume them. 2. In real estate appraisal, the value a specific property has for a specific use; may be the highest and best use of the property or some other use specified as a condition of the appraisal; may be used where legislation has been enacted to preserve farmland, timberland, or other open space land on urban fringes. Vacancy and collection loss. An allowance for reductions in potential income attributable to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. Variable expenses. Operating expenses that generally vary with the level of occupancy or the extent of services provided. Yield capitalization. The capitalization method used to convert future benefits into present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investment's income pattern, value change. and yield rate. Yield rate co. A rate of return on capital, usually expressed as a compound annual percentage rate. A yield rate considers all expected property benefits, including the proceeds from sale at the termination of the investment. Yield rates include the interest rate, discount rate, internal rate of return (IRR). overall yield rate(Yo)and equity yield rate (YE). 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A I} `it,l1,i 'll r 1 1i'o I y ..II. 4 Lig* .t. .- . .1, i :i 1 i ' �Yy/ . - it VIii ;-- A -- \ :1 '. ! % !T ALTA/NSPS LAND TITLE SURVEY FORTIN L.Eavr SLILES INC. :i» ., .,.,-,� ; I• ti,t• t Y 1 r ca IULT210 DUMB Ilamop•burros :. .. ,�...:..*Me*L .411i11111 •� -, SEAGULL HOTEL • ICO 21st STREET nr..at.r n OP.umo.n.v..a�MO. .. .r.•tn.....w 4••., .� CITY Oi 11U1Y�EACN.'twat DAD(COUNTS'fLOW/. l..o*RI r.e• r't�'. ADDENDA BUILDING PLANS WALTER DUKE +PARTNERS COMMERCIAL REAL - h Page 121 of 358 Project Plum MIAMI PROJECT UPDATE 2020 Sep 22 XXXXX-CVP-VZ LL-PH 000 F\-') N 0 W Ul co CITTERIO-VIEL & PARTNERS FLOOR PLAN-LEVEL 01 (GROUND) Scale 1:32" - 1'0" RESTROOMS ,. 391 SF ' I , POH RETAIL' -'�v ".1 1 I..8 SRME • . 45i 'OXICi•G.LM111v KIM UM, 14 _.. . KITCHEN. F, 1 L .ice NO4 SF L T Lv., a.I 1 I 66 Seals 50 Sells I,i • • • • X11',1 I/2' r 8.031 _ . I. .. _ _' MEP 3886 SF IUB'S� O • .-4-•-. . 1'� l, d• • • • Orf 3211 SF sea, 1 LOBBY II I !I 1 I it �� I JC1e SF 8fN • • 1• ua I 1 I 1. J OUTDOOR LOUNGE POOL DECK ,I. L�-�•� 1051 SF 10222 SF n POOL ..... 2971 SF ' Seam 52 Seals 75 Sea ^ fi 101' 9' 7' 1 cv (0 OUTDOOR LOBBY LOUNGE • 10 I d , . (D • I • 2693 SF r - _A34 Seats J'. I LI I. iJ .i N e,9 9 v2- (/3 LOADING DOCK.PARKING 0 2396 SF GARDEN 1465 SF W 01 CO f \'-.1 CITTERIO-VIEL&PARTNERS 'BRAND'ROTHMIAMI 12CYO Sep 22 SINN FLOOR PLAN - LEVEL 02 Scale 1:32"- 1'•0' Ml P SERVICE CORRIDOR CHANGING ROOM BARBER SHOP SPA FITNESS +.. I^5 9f 73 SF 7J74 SF 957 SF 4, 1. TRI r TR3 TRS. PT -� L _--� .-.. 6URE 6PA 1 m - III . Mil �i . 7 TR2 1 7144 THE THE i .^ . • • . • • 1 .1 —.----..4SPA SUN DECK. .l:1 SI B.O.H 4746 SF ED UFT LOBBY POR TIC U 566 Sr T..1 .: 1 . i11: L .SV : �F,NSO PS 1666 SF I 0) (a (D NJ A 0 C.) 01 CO 140061 SCHEOL.I I 1400N':;,:hit Oil(- LEVEL 02 KEY COUNT TOTAL KEY COUNT NAME GRUNT AREA NAME, COUNT ) AREA I 1666 SF $H �_. 1$395 SI 1 ' 1666 SF ..-I t.IS s, _.__27675 SF. 55 5760 SF IDLXS 6 5155 SF PS 114 ,13{72 SF 1 85 I 13562 SF ij TOTAL ISA ISA 71049 SF II •'^II y I CITTERIO-VIEL&PARTNERS HHANU' 101EL MIAMI I 202 Sep 22 awn FLOOR PLAN- LEVEL 03 Scale 1.32" 1,0" ••95 5, a _ _ 7"� ROOFTOP BAN 64 k.- .. : 1N /-_. — .� e---�- �� 775 SF POOL L21 Si �}IT, "7 8� 1�7 103 Seas lel SF 1,f r; i 3.•6" 4:ir N 4 7 f.".1P -�—, AY!sq- . l IiRH1 t 1 _ B.O.H I I -f SII SII 219 Sr 601 SF 645 SF 4. f Pook 5 SF t.b':. _ SS i _. 1 . 5,1 $74 13f C1I 1. I J N CTI 0 CO CT1 CO ROOM SCMEDUI F HOOM',:,11FOUL E LEVEL 03 KEY COUNT 'TOTAL KEY COUNT • TAME I COUNT • AREA wI POUNT i ARE; 1 SH . . 15._. .__ 7722 SF -_ SR_'`.-_._.._. 28..._..__ 15:451T-. ' ___ JS le 4789 SF y JS 47 27615 SF SS1 _ SO1 SF SS 7 5760 SF _ I P5 jt 906 SF DL XS 6 5155SF IUTAI IS 9250 SF PS 1413472 SF SS It --_ ---_7592 SF TOTAL.104 104 _. 7)049 SF • " 1 CITTERW.VIEL i PARTNERS BRAND HOTEL MIAMI 12C<O Sep 22 MOM FLOOR PLAN - LEVEL 04-07(TYPICAL) Scale I.32" V-0" 'a4M�fi I, - ASP _ . 111 I= r s i� iii ±a- ._est n 14.. . Ji4 1 1 IM __. 5)9p.- Illi all =- IIIII I i:OR.. RS`44-1,.. '" .�.. •. 04191 u 8.0.11 I31 Sf xssI I 314. rild 1:114.:731. 599 13 I a) un SR 1 II NJ 0) 0 CO 031 ROOM SCHEDULE ROOM SCHEOUt E LEVEL 04 KEY COUNT TOTAL KEY COUNT Nam _. COUNT AMA_ A 5 2625 SF - ' 'n 29 15715 SF h J.: J 8 4738 SF is /7 _- E27675 SF v _SS I 831 S S 7 5760 Si OX`- 1 836 Sr DI.XS 6 SISS SF n5 12 �I 642 SF IF•S 11 '17472 SF O AI 87 10619 5E US L7512 SF IiCIAI IG 134 /t019 SF _ _ ___` .\ � CITTERIO-VIEL I PARTNERS •8RANU•HOTS.MIAMI ie/.0 Sep 2:' on= FLOOR PLAN-LEVEL 08 :,cale 1 32"- 1-0' R 1 lc PS ' los rrri SF i .., ,, 1, L 1 VI . r ..A Al ' ''' . 'I NIA ke 314.1.11MIN I Mini A 1 . 44 all i • S 591 Si- Us)r MIlli 1111 ' 1111 Ull LINIPI COR .NM Os,- - --.--- . • ....._____ , OM I 229 SFr 1 SS NW sr 9S4 SF I 1 I . • 901 S, ".:.IIIL .1 .- -t) i CU :A (c, CD .. _.> N) -.I 0 (.....> Ui CO ROOM SCHEDULE ROOM SCHEDULE • LEVEL 08 KEY COUNT TOTAL KEY COUNT - NAME ' 4--T -COUNT ANSA - L- NM§ 4 COUNT - WA SP 2 1055 sr SR ,2,F 15'395 Sr . JS3965 SF ' 11i 47 11.167!'1,1 SS 2 '755 SF ,.SS lois' I see SF O150 b i'';',.or _. 6,...; 3 2813 SF PS .H1 1 ia/2 OF TOTAL ,5 '04766" RS ,192 SF IS r At 104 134 ?•040 SF CITTERIO-VIEL&PARTNERS ..0.1.4.3 1101i I MIAMI I 2)20 Sep22 UMW FLOOR PLAN - LEVEL 09 .,t lie ' Tl'. 1 I;.. 'm{t 114 g:, TERRACE .,`Jt.1 SF CORRIDOR ': 2[----9°7—"4 .5.�•�(� � I' SF IS 14117 SF CD co CD 1 N CO 0 W N CO ROOM SCHEDULE ROOM SCHEDULE LEVEL 09 KEY COUNT TOTAL KEY COUNT NAPE L GC{MT _AREA .. I ..__ MAIM f _.....cow __..._..- *ma '.I:> '1 108B SI SR 09 15395 SF LI 70 1 924 S, .5 47 27675 SF 1 ii 44751 55 7 5760 SF H; 1 7591 Si .DL%S 6 5155 SF I',,0.1 , >ow,,S' PS 14 17472 SF ES - 3992 SF 10141 104 I W 71049 SF CITTERIO-VIEL&PARTNERS HRANU'HOTEL MIAU I I 020 Sep 72 4ml1 ROOF PLAN- LEVEL 10 1 100'_.7 14 111.1111111111111111111111.1 . rooL 1 •1 o- DO' I. 1202 SF JJ °l. i !', nig,' pa_ :. 0 -: ,I 1 .. a!3 , . 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IL. •.,_. r► I CITELRIO-VIE-1 &PAR'NE RS BRAND NOTE:I IAIAMI 12Cr Sep 22 elm ADDENDA COMPARABLE SITE SALE PROFILES WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 146 of 358 Land Sale No. I V= • 41 ..e.... 0 . 116. 111 A. 1111 011 41 41141 61' • vrt" Property Identification Record ID 3121 Property Type Office/Hotel,Other Property Name Urbanica Hotel Site Address 6747 Collins Avenue,Miami Beach,Miami-Dade County, Florida 33141 Tax ID 02-3211-007-0430,-0440 NSA Miami Market Type Beach Sale Data Grantor CCCC Miami Beach,LLC Grantee BTL Investments(Urbanica) Sale Date August 26, 2019 Deed Book/Page 31594/2456 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification November 06,2020; Confirmed by Andrew Rolf Sale Price $38,000,000 Cash Equivalent $38,000,000 Land Data Zoning RM-3 Topography Level Utilities All available Shape Rectangular Platting Yes Concurrency Yes Approvals No Page 147 of 358 Land Sale No. 1 (Cont.) Depth 333 Land Size Information Gross Land Size 0.956 Acres or 41,625 SF Planned Units 200 Front Footage 125 ft Total Frontage: 125 ft Atlantic Ocean; Actual/Planned Building SF 93,654 Indicators Sale Price/Gross Acre 539,766,486 Sale Price/Gross SF $912.91 Sale Price/Planned Unit 5190,000 Sale Price/Front Foot $304,000 Sale Price/Planned Bldg.SF $405.75 Remarks This is the sale of an Atlantic Ocean fronting development site in Miami Beach. Approvals were in place at the time of sale for condo development. However, the buyer will seek new approvals to build a 20-story, 200-room hotel with permitted F.A.R. of 2.0X. Page 148 of 358 Land Sale No. 2 •!ice`gif •r . i.„, i.7 . _R._ . .. i ,. . ..., .p 'tib -". , -, a. . .;.. i .l... t.. , .. • _ , .... , ._ . k p ,. . . :!" ...2.,„ , :_ ,. .... 1 ::-.... ,. '. • i :I liQr, . rt Property Identification Record ID 2812 Property Type Multi-family, Condominium Address 304 Ocean Drive, Miami Beach, Miami-Dade County, Florida 33139 Location NWC 3rd Street and Ocean Drive Tax ID 02-4203-003-0500,0510 MSA Miami Market Type Beach Sale Data Grantor Sea Spray Development, I,I,C Grantee 312 Ocean Park,LLC Sale Date December 18, 2018 Deed Book/Page 31262/4607 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Sale History Aug. 2013 56,300,000 Verification Joe Thomas,M&M;954-599-0071, March 29,2019; Confirmed by Andrew Rolf Sale Price $10,000,000 Cash Equivalent $10,000,000 Land Data Zoning RPS-3 Topography Level Utilities All available Shape Rectangular Platting Yes Page 149 of 358 Land Sale No.2(Cont.) Concurrency Yes Approvals No Land Size Information Gross Land Size 0.264 Acres or 11,500 SF Planned Units 10 Indicators Sale Price/Gross Acre $37,878,261 Sale Price/Gross SF $869.57 Sale Price/Planned Unit $1,000,000 Remarks This is the sale of vacant site in Miami Beach located in the South of Fifth(SoFi)neighborhood. At the time of sale the property did not possess any entitlements and approvals. Since purchase the buyer has announced plans to construct a 10-unit luxury condo called Ocean Park South Beach comprising -/-20,400 SF of saleable area. Page 150 of 358 Land Sale No.3 i f o t `r i lit I, a ,. ,. .... ... # , : : .... . . f - `' a _. „at_ ,, , ,. : r yr .-- • . Property Identification Record ID 3005 Property Type Multi-family,Condominium Property Name Dezer Plaza Address 18320 Collins Avenue,Miami Beach,Miami-Dade County, Florida 33160 Location NWC 183rd Street&Atlantic Boulevard Tax ID 31-2202-003-0201 Sale Data Grantor Publix Supermarkets Inc Grantee Dezer Plaza Sale Date October 15,2018 Deed Book/Page 31186/4241 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification May 05, 2020;Confirmed by Andrew Rolf Sale Price $3I,700,000 Cash Equivalent S3;,700,000 Land Data Zoning B-1 Topography Level Utilities All available Shape Rectangular Platting Yes Concurrency Yes Approvals No Land Size Information Gross Land Size 0.851 Acres or 37,054 SF Page 151 of 358 Land Sale No.3 (Cont.) Planned Units 68 Indicators Sale Price/Gross Acre S37,265,936 Sale Price/Gross SF 5855.51 Sale Price/Planned Unit 5466,176 Remarks This is the sale of a vacant lot located behind a newly renovated Publix store in Sunny Isles Beach. The vacant Intracoastal fronting site was acquired by Dezer who owns 3.15-acres located adjacent on the north side of the site. No plans were in place at the time of sale for development. The B-I,Neighborhood Business and BO, Business Overlay zoning permit development at 25- units per acre and an 2.0 FAR plus bonus density of 80-units per acre and a maximum FAR up to a 3.45 for enclosed parking bonus(0.40),public parking bonus(0.25),a Collins Avenue/Sunny Isles Boulevard public streetscape enhancement bonus(0.30),and a site assembly bonus(up to 0.50). The dwelling unit density bonus can be increased by one dwelling unit per acre for each 0.02 increase in FAR granted in accordance with Section 265-36E(1)of the City Code up to a maximum density of 80 dwelling units per acre. Page 152 of 358 Land Sale No.4 k . r ' !II — * "4 .. .,„ I 0.111 am, miliazri. . . . 4fr- . , ,111, . i.r... . .. . . .4._ c...10111Tio. iiiiti : : . , ' alt . ifir . , - apep' A 44 r %;ille --....-W 1 ..... __.• )11W -1 " : ' a • , _ _ . . , ...s.. vii 4- : . ,,,,.., .41, .. ..,.: ,,,,„... ., ,. ..ei .. . ,.. rev .,,, J. 0- , _ . , . : mot . ,.i . t • 4- s 41111 ' --.I Property Identification Record ID 3004 Property Type Office/Hotel Property Name Former Oceanside Nursing Home Address 550 9th Street,Miami Beach,Miami-Dade County,Florida 33139 Location SEC 9th Street&Pennsylvania Avenue Tax ID 02-4203-009-0100 Sale Data Grantor ADME Real Estate,LLC Grantee 550 Ninth,LLC Sale Date January 31,2018 Deed Book/Page 30863/349 Property Rights Fee Simple Marketing Time 9 months Conditions of Sale Arm's Length Financing Cash to seller Verification May 05,2020;Confirmed by Andrew Rolf Sale Price $17,625,000 Cash Equivalent $17,625,000 Land Data Zoning CD-2,Commercial Medium Intensity Topography Level Utilities All available Shape Rectangular Platting Yes Concurrency Yes Approvals Yes Page 153 of 358 Land Sale No.4 (Cont.) Land Size Information Gross Land Size 0.479 Acres or 20,873 SF Planned Units 110 Indicators Sale Price/Gross Acre $36,781,728 Sale Price/Gross SF $844.39 Sale Price/Planned Unit 5160,227 Remarks This is the sale of a former 88-room (196-bed)nursing facility located on Miami Beach. The property was vacant at the time of sale and was marketed for redevelopment. The property was in foreclosure and the sale was approved by a U.S.judge. The buyer owns other hotels in Miami Beach and intends to convert the building to hotel use. Prior to closing on the sale the buyer secured zoning and approvals to convert the 88 rooms to 110 hotel rooms. Page 154 of 358 Land Sale No. it411 , � + � s= iris . _ a i ,s, 4 . ik,,,,,.:412.11'4" 4N1 .. imi • L! - i _ 777-__ ,i... AP Property Identification Record ID 2944 Property Type Multi-family,Condominium Address 1135 103rd Street, Bay Harbor Islands, Miami-Dade County, Florida 33154 Location Bay I larbor Islands Tax ID 13-2227-001-6770 MSA Miami Market Type Beach Sale Data Grantor P3 Investments 1, LLC Grantee BH Investment, LLC Sale Date November 13, 2017 Deed Book/Page 30764/1606 • Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash to seller Verification April 16, 2019; Confirmed by Andrew Rolf Sale Price $20,500,000 Cash Equivalent $20,500,000 Land Data Zoning RM-3,Residential Multifamily Topography Level Utilities All available Page 155 of 358 Land Sale No. 5(Cont.) Shape Rectangular Platting Yes Concurrency Yes Approvals No Land Size Information Gross Land Size 1.209 Acres or 52,666 SF Planned Units 29 Front Footage 300 ft Biscayne Bay; Indicators Sale Price/Gross Acre SI 6,955,531 Sale Price/Gross SF $389.25 Sale Price/Planned Unit S706,897 Remarks This is the sale of a vacant site located on the northern end of the Bay Harbor Islands with direct frontage on Biscayne Bay. The site was previously approved for 29 luxury condo units and 121,000 SF of saleable area. According to the confirming source the buyer wanted to own the premier site on the island but had no immediate plans to develop the site. Page 156 of 358 ADDENDA ZONING 1r*IrraNKOZWURIE% WALTER DUKE +PARTNERS COME- AL REAL ESTATE vALuA- Page 157 of 358 Sec. 142-241. - Purpose. The RM-3 residential multifamily, high intensity district is designed for high intensity multiple-family residences and hotels. (Ord. No. 89-2665, § 6-4(A)(1), eff. 10-1-89; Ord. No. 96-3050, § 2, 7-17-96) Sec. 142-242. - Main permitted uses. The main permitted uses in the RM-3 residential multifamily, high intensity district are single-family detached dwelling; townhomes;apartments;apartment hotels; hotels, hostels,and suite hotels (pursuant to section 142-1105 of this chapter). (Ord. No. 89-2665, § 6-4(A)(2), eff. 10-1-89; Ord. No. 96-3050, § 2, 7-17-96; Ord. No. 2013-3820, § 2, 10-16-13; Ord. No. 2014-3869, § 1, 5-21-14; Ord. No. 2017-4146, § 2, 10-18-17) Sec. 142-243. -Conditional uses. The conditional uses in the RM-3 residential multifamily, high intensity district are day care facility; stand- alone religious institutions; private and public institutions; schools; commercial or noncommercial parking lots and garages;accessory outdoor entertainment establishment;accessory neighborhood impact establishment; and accessory open air entertainment establishment as set forth in article V, division 6 of this chapter. (Ord. No. 89-2665, § 6-4(A)(3),eff. 10-1-89; Ord. No. 96-3050,§ 2, 7-17-96; Ord. No. 2014-3869, § 1, 5-21-14; Ord. No. 2018-4175, § 1, 3-7-18) Sec. 142-244.-Accessory uses. The accessory uses in the RM-3 residential multifamily, high intensity district are as follows: (1) Those uses permitted in article IV, division 2 of this chapter. (2) Alcoholic beverage establishments pursuant to the regulations set forth in chapter 6. (3) Accessory outdoor bar counters, pursuant to the regulations set forth in chapter 6 provided that the accessory outdoor bar counter is not operated or utilized between midnight and 8:00 a.m.; however, for an accessory outdoor bar counter which is adjacent to a property with an apartment unit,the accessory outdoor bar counter may not be operated or utilized between 8:00 p.m. and 8:00 a.m. (4) Oceanfront hotels with at least 100 hotel units may operate and utilize an accessory outdoor bar counter, notwithstanding the above restriction on the hours of operation, provided the accessory outdoor bar counter is(i) located in the rear yard, and (ii)set back 20 percent of the Page 158 of 358 lot width (50 feet minimum)from any property line adjacent to a property with an apartment unit thereon. (5) RM-3 properties within the "West Avenue Corridor" may not have accessory outdoor entertainment establishments. Notwithstanding the foregoing, a property that had a Legal Conforming Use as of May 28, 2013, shall have the right to apply for and receive special event permits that contain entertainment uses. (Ord. No. 89-2665, § 6-4(A)(4), eff. 10-1-89; Ord. No. 96-3050, § 2, 7-17-96; Ord. No. 2013-3820, § 2, 10-16-13; Ord. No. 2016-4005, § 1, 3-9-16) Sec. 142-245. - Prohibited uses. The prohibited uses in the RM-3 residential multifamily, high intensity district are accessory outdoor bar counter, except as provided in section 142-244; for properties located within the Sunset Harbour neighborhood,generally bounded by Purdy Avenue, 20th Street, Alton Road, and Dade Boulevard, hostels; for property located within the West Avenue corridor, hostels; for properties located within the West Avenue corridor, hotels and apartment hotels, except to the extent preempted by F.S. 5 509.032(7), and unless a legal conforming use. Properties that voluntarily cease to operate as a hotel for a consecutive three-year period shall not be permitted to later resume such hotel operation. Without limitation, (a) involuntary hotel closures due to casualty, or(b)cessation of hotel use of individual units of a condo-hotel, shall not be deemed to be ceasing hotel operations pursuant to the preceding sentence. (Ord. No. 89-2665, § 6-4(A)(5), eff. 10-1-89; Ord. No. 96-3050, § 2, 7-17-96; Ord. No. 2013-3820, § 2, 10-16-13; Ord. No. 2016-4005, § 1, 3-9-16; Ord. No. 2017-4146, § 2, 10-18-17) Sec. 142-246. - Development regulations and area requirements. (a) The development regulations in the RM-3 residential multifamily, high intensity district are as follows: (1) Max. FAR: Lot area equal to or less than 45,000 sq. ft.-2.25; lot area greater than 45,000 sq. ft.-2.75; oceanfront lots with lot area greater than 45,000 sq. ft.-3.0. (2) Notwithstanding the above,oceanfront lots in architectural district shall have a maximum FAR of 2.0. (3) Notwithstanding the above, lots which, as of the effective date of this ordinance (November 14, 1998), are oceanfront lots with a lot area greater than 100,000 sq. ft.with an existing building, shall have a maximum FAR of 3.0; however, additional FAR shall be available for the sole purpose of providing hotel amenities as follows: the lesser of 0.15 FAR or 20,000 sq. ft. (b) The lot area, lot width, unit size and building height requirements for the RM-3 residential multifamily, high intensity district are as follows: Page 159 of 358 Minimum Minimum Minimum Average Maximum Lot Area Lot Width Unit Size Unit Size Building Height (Square Feet) (Feet) (Square Feet) (Square Feet) (Feet) 7,000 50 New New 150 construction— construction- 550 800 Oceanfront lots Non-elderly and Non-elderly and —200 elderly low and elderly low and Architectural moderate moderate dist.: New income housing income housing construction- -400 —400 120; ground Workforce Workforce floor additions housing-400 housing-400 (whether Rehabilitated Rehabilitated attached or buildings-400 buildings-550 detached) to Hotel units: Hotel units— existing 15%: 300-335 N/A. The structures on 85%: 335+ number of units oceanfront lots For hotel may not exceed —50(except as structures the maximum provided in located within density set forth section 142- the Collins Park in the 1161) District, comprehensive generally plan. bounded by the erosion control line on the east, the east side of Washington Avenue on the west, 23rd Street on the Page 160 of 358 north, and 17th Street on the south, hotel units shall be a minimum of 200 square feet. For contributing hotel structures, located within an individual historic site, a local historic district or a national register district, which are renovated in accordance with the Secretary of the Interior Standards and Guidelines for the Rehabilitation of Historic Structures as amended, retaining the existing room configuration and sizes of at least 200 square feet shall be permitted. Page 161 of 358 Additionally, the existing room configurations for the above described hotel structures may be modified to address applicable life- safety and accessibility regulations, provided the 200 square feet minimum unit size is maintained, and provided the maximum occupancy per hotel room does not exceed 4 persons. Hotel units within rooftop additions to contributing structures in a historic district and individually designated historic buildings-200. Page 162 of 358 (c) Notwithstanding the above, for oceanfront lots located within a locally designated historic district or site, but not within the architectural district,with less than 400 feet of lineal frontage along Collins Avenue and containing at least one contributing structure, the maximum building height for ground floor additions to existing structures,whether attached or detached, shall be as follows: (1) For existing structures greater than five stories in height, the maximum height shall be limited to ten stories or the height of the roof line of the main structure on site,whichever is less. At the discretion of the historic preservation board, the maximum height of the ground floor addition may exceed ten stories if the existing and surrounding structures are greater than five stories in height, provided the addition is consistent with the scale and massing of the existing structure. (2) For existing structures five stories or less in height,the maximum height shall be limited to five stories. Additionally, the proposed addition shall not substantially reduce existing or established view corridors, nor impede the appearance or visibility of architecturally significant portions of an existing structure, as determined by the historic preservation board. (d) Notwithstanding the above,for oceanfront lots located in the architectural district, the overall height of an attached addition may exceed five stories and 50 feet, but shall not exceed the height of the roof line of the structure attached to, provided all of the following conditions are satisfied: (1) The proposed addition shall consist of the expansion of existing hotel units only and shall not result in an increased number of units. (2) The proposed addition shall be for hotel units only.A restrictive covenant, running with the land, or other similar instrument enforceable against the owner(s), acceptable to and approved as to form by the city attorney, shall be required to ensure that the units remain as hotel units for a minimum of 30 years. If the applicant is unable to provide such a covenant, this requirement may be waived by the city manager if it is demonstrated that the project provides an extraordinary public benefit to the surrounding area. (3) The proposed addition shall not be attached to front, street side or oceanfront elevations, nor along any other principal elevations or facades,as determined by the historic preservation board. (4) The proposed addition shall not substantially reduce existing or established view corridors, . nor impede the appearance or visibility of architecturally significant portions of an existing structure, as determined by the historic preservation board. (e) A ground floor addition relocating existing hotel units shall also meet the following conditions, in Page 163 of 358 addition to subsection (d)(2)-(4)above: (1) There shall be no neighborhood impact establishment, dancehall or entertainment use in the area of the proposed addition; (2) No new outdoor or open air entertainment establishment shall be created on the property. Outdoor or open air entertainment establishments existing as of the effective date of this subsection (November 24, 2012)may continue but shall not be expanded if a property avails itself of this provision. (3) Upon approval of the proposed addition by the historic preservation board, no building greater than two stories or 25 feet in height shall be constructed between the rear of the building and westward line of the dune overlay district. This provision shall not be subject to variance. (4) Notwithstanding the provisions in subsection 142-1161(d), if the building presently contains unoccupied but built spaces enclosed on at least three sides by existing walls of a height that would conceal a new roof, such as false parapets or storage rooms, those spaces may be further enclosed as habitable floor area, up to the permitted floor area; and (5) No new commercial uses shall be permitted on the rooftop or any open air decks of the existing structure or proposed addition. (f) Notwithstanding the above, for oceanfront lots located in the architectural district,with a lot area greater than 115,000 square feet, a ground floor addition,whether attached or detached, may exceed 50 feet in height, but shall not exceed 200 feet in height, in accordance with the following provisions: (1) Placement of the structure.The ground floor addition shall be located internal to the site, and shall be set back a minimum of 100 feet from the front property fine, 75 feet from the street side property lines, and 100 feet from the rear(oceanfront) property line. (2) Limits on the floorplate of additions exceeding 50 feet in height. The maximum floor plate size for the portion of an addition that exceeds 50 feet in building height is 15,000 square feet per floor, excluding projecting balconies.The historic p•eservation board may approve an increase in this overall floor plate, up to a maximum of 20,000 square feet per floor, excluding balconies, in accordance with the certificate of appropriateness criteria in chapter 118, article X of these land development regulations. (Ord. No. 89-2665, § 6-4(B), eff. 10-1-89; Ord. No. 94-2949, eff. 10-15-94; Ord. No. 94-2954, eff. 11-30-94; Ord. No. 97-3097, § 2, 10-8-97; Ord. No. 98-3107, § 1, 1-21-98; Ord. No. 98-3149, § 1, 11-4-98; Ord. No. 98-3150, § 1, 11-4-98; Ord. No. 2000-3233, § 1, 3-4-00; Ord. No. 2005-3483, § 4, 5-18-05; Ord. No. 2007-3588, § 1, 12-12- 07; Ord. No. 2007-3589, § 1, 12-12-07; Ord. No. 2011-3744, §6, 10-19-11; Ord. No. 2012-3784, § 1, 11-14-12; Ord. No. 2013-3808, § 3, 9-11-13; Ord. No. 2017-4148, §7, 10-18-17; Ord. No. 2017-4149, § 6, 10-18-17; Ord. No. 2018-4158, § 2, 1-17-18; Ord. No. 2019-4275, § 3, 6-5-19;Ord. No. 2019-4285, § 1, 7-31-19; Ord. No. 2019-4315, § 1, 10-30-19) Page 164 of 358 Sec. 142-247. -Setback requirements. (a) The setback requirements for the RM-3 residential multifamily, high intensity district are as follows: Front Side, Side, Facing Rear Interior a Street At-grade parking 20 feet 5 feet, or 5% of 5 feet, or 5% of Non-oceanfront lot on the same lot width, lot width, lots-5 feet lot whichever is whichever is Oceanfront lots greater greater —50 feet from bulkhead line Page 165 of 358 Subterraean and 20 feet Sum of the side Sum of the side Non-oceanfront pedestal Except lots A yards shall equal yards shall equal lots-10% of lot and 1-30 of the 16% of lot width 16% of lot width depth Amended Plat Minimum-7.5 Minimum-7.5 Oceanfront lots Indian Beach feet or 8% of lot feet or 8% of lot —20% of lot Corporation width, width, depth, 50 feet Subdivision and whichever is whichever is from the lots 231-237 of greater. greater bulkhead line the Amended Notwithstanding whichever is Plat of First the foregoing, greater. Ocean Front rooftop Notwithstanding Subdivision-50 additions to the foregoing, feet contributing rooftop structures in a additions to historic district non-oceanfront and individually contributing designated structures in a historic historic district buildings may and individually follow existing designated nonconforming historic rear pedestal buildings may setbacks. follow existing nonconforming rear pedestal setbacks. Page 166 of 358 Tower 20 feet + 1 foot The required Sum of the side Non-oceanfront for every 1 foot pedestal setback yards shall equal lots-15% of lot increase in plus 10% of the 16% of the lot depth height above 50 height of the width Oceanfront lots feet, to a tower portion of Minimum-7.5 —25% of lot maximum of 50 the building. The feet or 8% of lot depth, 75 feet feet, then shall total required width, minimum from remain setback shall not whichever is the bulkhead constant. exceed 50 feet. greater line whichever is Except lots A Notwithstanding greater. and 1-30 of the the foregoing, Notwithstanding Amended Plat rooftop the foregoing, Indian Beach additions to rooftop Corporation contributing additions to Subdivision and structures in a non-oceanfront lots 231-237 of historic district contributing the Amended and individually structures in a Plat of First designated historic district Ocean Front historic district and individually Subdivision-50 buildings may designated feet follow existing historic district nonconforming buildings may side, interior follow existing pedestal nonconforming setbacks. side, interior pedestal setbacks. Notwithstanding the above, oceanfront lots located in the Miami Beach Architectural District shall be permitted to construct detached additions at a height not to exceed 25 feet and shall have setback requirements as follows: Page 167 of 358 Side, interior: Five feet. Side, street: Five feet. Rear:Ten percent of lot depth or the western edge of the Oceanfront Overlay,whichever is greater. (b) In the Morris Lapidus/Mid-20th Century Historic District the following shall apply: (1) Roof-top additions, whether attached or detached, may follow the established lines of the interior side setbacks of the existing structure on the site, subject to the review of the historic preservation board. (Ord. No. 89-2665, §§6-4(C), 6-5, eff. 10-1-89; Ord. No. 90-2722,eff. 11-21-90; Ord. No. 91-2767, eff. 11-2-91; Ord. No. 93-2885, eff. 11-27-93; Ord. No. 96-3050, § 2, 7-17-96; Ord. No. 98-3108, §2, 1-21-98; Ord. No. 2014- 3853, § 1, 4-23-14; Ord. No. 2014-3879, § 2, 6-11-14; Ord. No. 2018-4160, §2, 1-17-18; Ord. No. 2019-4315, § 1, 10-30-19) Sec. 142-248.-Additional regulations for new construction. In the RM-3, residential district, all floors of a building containing parking spaces shall incorporate the following: (1) Residential or commercial uses, as applicable, at the first level along every facade facing a street, sidewalk or waterway. For properties not having access to an alley,the required residential space shall accommodate entrance and exit drives. (2) Residential uses above the first level along every facade facing a waterway. (3) For properties less than 60 feet in width,the total amount of residential space at the first level along a street side shall be determined by the design review or historic preservation board, as applicable.All facades above the first level, facing a street or sidewalk, shall include a substantial portion of residential uses; the total amount of residential space shall be determined by tine design review or historic preservation board, as applicable, based upon their respective criteria. (Ord. No. 2006-3510, § 4, 3-8-06) Page 168 of 358 ADDENDA REGIONAL DESCRIPTION WALTER DUKE +PARTNERS COMMERCIAL AL ESTATE VALUATION Page 169 of 358 ADDENDA Florida's Economic Conditions The Summary of Commentary on Current Economic Conditions is a regionalized economic report published by the Federal Reserve Board eight times a year. This report is informally referred to by economists as The Beige Book. The Atlanta Fed territory includes Alabama, Florida, Georgia, and portions of Louisiana, Mississippi, and Tennessee. The most recent Beige Book, issued October 21, 2020, reported that, economic conditions in the Sixth District improved slightly over the reporting period but remained below pre-COVID-19 levels. Labor market activity improved modestly as employers continued to add to payrolls. Nonlabor costs remained generally muted, but costs related to construction and COVID-19 safety measures continued to rise. Retail sales grew but largely remained below year-earlier levels. Softness in tourism and hospitality persisted as COVID-19 restrictions continued to limit activity in many parts of the District. Residential real estate demand and home prices increased while inventory levels remained tight. Commercial real estate activity stabilized. Manufacturing activity increased and new orders and production levels rose. Banking conditions stabilized, and loan loss reserves continued to grow. Employment and Wages — Contacts reported modest improvements in labor market conditions since the last report. On balance, District employers continued to add to payrolls over the reporting period. Firms continued to slowly recall workers as demand returned. However, several contacts reported that some prior staff cutbacks had become permanent, while others noted using attrition to shrink headcount. Many contacts indicated that the pool of available workers was ample and speculated that the expiration of the enhanced unemployment insurance benefit had begun to improve the supply of workers for lower-skilled positions. Employers remained concerned about workers' abilities to balance workloads with the demands of childcare and the return to school, in person or virtual. Reports on wages and compensation varied among contacts. Some businesses rescinded salary cuts, while others maintained pay cuts and salary freezes. Wage increases remained concentrated at the low end of the pay scale. Prices — Over the reporting period, contacts noted some rising input costs, particularly for lumber and steel. Expenses associated with personal protective equipment, testing, and sanitation practices to protect employees and customers from COVID-19 remained significant, and increased technology expenses for extended work-from-home postures were also reported. Insurance costs were also cited as increasing. Pricing power remained muted, with little ability to pass WALTER DUKE E +PARTNERS 04AMERC ES"A'e,AL',s ^v Page 170 of 358 ADDENDA through these costs. The Atlanta Fed's Business Inflation Expectations survey showed year-over-year unit costs decreased significantly, from 1.5 percent in August to 1.3 percent on average in September. Year-ahead expectations remained largely unchanged at 1.6 percent. Consumer Spending and Tourism — Reports from retail contacts were little changed from the previous report. Sales relative to this time last year remained soft but were better than expected with continued strength in home-related products. Contacts in Florida and Louisiana anticipate an uptick in demand as those states implemented final phases of reopening. Contacts shared concerns for the upcoming holiday season sales period, citing political uncertainty and the potential for another spike in COVID-19 cases as potentially hampering sales growth. Travel and tourism contacts reported that although demand through the summer season was softer than a year ago, tourism activity through early October was recovering slowly. COVID-19 restrictions continued to negatively impact the industry in most District states as hospitality contacts reported that group travel and conference bookings continued to be postponed or cancelled through the second quarter of 2021. Construction and Real Estate— Demand for housing continued to recover, and new home construction continued to fall short of demand. Inventory levels of existing homes dropped to historic lows and shortages are expected to remain a long-term market headwind. Limited supply and rising construction costs have led to increased upward pressure on prices. However, historically low interest rates continued to help offset rising prices. Contacts shared concerns over potential higher mortgage defaults as surges in delinquencies in markets such as Orlando and Miami were noted. Commercial real estate (CRE) contacts reported continued stabilization amidst improving employment conditions and customer traffic. Hospitality, which was especially hard hit at the onset of the pandemic, was generally stagnant. Retail remained challenged: however, contacts reported marginal improvement as rent collections increased at poor performing shopping centers. The rate of unit leasing remained muted compared with pre-pandemic rates. Owners of lower- price multifamily properties reported an increase in late rent payments and some softening in occupancies. While improving, low levels of tourism and travel were having a notable impact on activity across the hospitality and retail sectors. Due to slower transaction and leasing volumes, asset valuation remained difficult. WALTER DUKE +PARTNERS Page 171 of 358 ADDENDA Manufacturing — Manufacturing contacts reported an increase in overall business activity since the previous report. Firms indicated that new orders and production levels rose, and supply delivery times increased. Finished inventory levels were also reported to have increased, after declining over the last three reporting periods. Expectations for future production levels rose, with half of contacts surveyed expecting higher levels of production over the next six months. Transportation — Transportation activity across the District improved over the reporting period. Trucking firms reported that shipments of consumer staples and building materials remained above pre-COVID-19 levels. Port contacts reported significant growth in container traffic, driven by increases in e-commerce, and ocean carriers were operating at full capacity and reinstating vessels that were suspended as a result of the pandemic. Railroads reported that overall traffic improved, intermodal shipments of consumer goods strengthened, and industrial freight volumes stabilized but were down from year-earlier levels. Inland waterway contacts noted that demand for barge services was below pre- pandemic levels, owing primarily to fewer shipments of domestically-produced refined products. Banking and Finance — Conditions at financial institutions stabilized over the reporting period. Earnings remained pressured by compressed net interest rate margins and higher provisions for loan losses. Persistently elevated deposit levels kept liquidity strong. Loan growth was flat as underwriting conditions remained tight for many loan products outside of portfolios such as residential real estate. Requests for additional forbearance on loan payments declined. Energy — Hurncanes Laura and Sally made landfall within the District during the reporting period, causing supply disruptions as production, refining, and chemical processing activity stalled, according to energy contacts. Power generation, transmission, and distribution infrastructure in southwest Louisiana was severely damaged by Hurricane Laura, leaving hundreds of industrial sites without power for a sustained period. Crude oil refiners continued to experience weak demand amidst a global inventory glut. Refining contacts noted that utilization rates remained near historically low levels and are expected to remain low heading into the fall or until fuel prices rise enough to justify increasing output. Still, some energy contacts reported that large industrial petrochemical refining and chemical processing plant expansion projects that were delayed earlier in the year were gradually picking up again. Utilities contacts noted ongoing investment and integration of renewable energy resources. WALTER DUKE +PARTNERS CCMMEG(..A PEA,FSTA-E +A,.!A'pV Page 172 of 358 ADDENDA Agriculture — Agricultural conditions remained weak. While drought-free conditions prevailed in most parts of the District, some producers reported crop and infrastructure damage caused by Hurricanes Laura and Sally. The USDA reported that District farmland values were up on a year-over-year basis except in Florida where cropland value was unchanged. Cotton, peanut, and rice harvesting progressed, though below the pace of their five-year averages, while soybean harvesting was near its five-year average. The USDA reported that in August, year-over-year prices paid to farmers were up for cotton, rice, soybeans, and milk, but down for corn, cattle, broilers, and eggs. On a month-over-month basis, prices increased for rice, soybeans, and cattle but decreased for corn, cotton, broilers, eggs, and milk. Source: The Summary of Commentary on Current Economic Conditions(The Beige Book) WALTER DUKE +PARTNERS �Grw;1c.A.PE:.,ES-A'E va_L)A- Page 173 of 358 ADDENDA Florida Market Snapshot FLORIDA MARKET MSA SNAPSHOT MSA Population Office SF 'ntlyslnal SF SF Home Sass Inc. ALTmt SeaOon Median Age Vacancy Vacancy M..flnn SP Inc. f+nmesbc nfl FMytt:: Tonnage Orlando _ 7 - ' 2.M0000 4327 in:lhon 1131 m.@on •1 8% Orlando Intl PotCa cul yam, r 39 I 880% 6.30% •3.5% 92/59 4.63 maon s tces?! y'~%±,/ -`- Orlando Safford M (i , >n, . 4 J,ce 74/13• • ^^ aill 1 ndudes Orange Seminole.Lake.and Osceola Cmraes South Florida 6 166 488 2 6 mann 447 10 maon -4 2% Warn yet Pad Mums 39 7 8.96% 4.73% •7.9% 59/104 9.16'maw Fort Lauderdale 911 Pat Et4ndatles 8496 25 30 mean Palm Beach MCI Port Of Palm Beast Mdutles Miami-Dade.Broward and Palm Beach Costae, 31/3 2.48 main Tampa Bay 4 562.512 66 main 212.40 meat •2 3% l amoe HI POR Tanw Bar 42.3 660% 570% •92% 67/16 44.5 million R - St Petersaurg-Ckannater MCI .rl.�...�.,. .. 53/4 Sarasotr&aoertor 581 Includes Hiaspocm,Pinellas Henardo and Pasco Cour es 37/1 Jackaomnae 44 456695 65.2'v.1,or. 143 niacin •95% Jan M7 Airport Porte/edition/Ile 8 40% 5.00% •9.6% 32/0 10 9 moon k f' s hQudea Baker.Clay,Dues.^lager.Panam.Nassau,and St Jars Cartes Scam CoStar,F Realtors Census Burew.Soud1 da Business Joun8 Above are the pre-COVID-19 figures for the major market areas in Florida. It is still uncertain what long-term effects will result from the COVID-19 pandemic for each industry. Federally mandated shutdowns and social distancing guidelines were implemented beginning in March 2020. Since that time, airports and seaports have seen extreme decreases in activity. Passenger cruise lines have completely shut down with recent announcements to remain closed until September 2020. Port activity involving cargo and petroleum have remained active. Passenger flights have been significantly reduced due to the significant lack of demand. Some airports have received funding from the CARES Act and have continued ongoing expansion and construction projects during this time. The airline industry is projected to re-stabilize in 2022. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 174 of 358 ADDENDA South Florida Regional Analysis Market Definition The Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area comprises the area generally known as the South Florida Region (South Florida), which includes Miami-Dade, Broward and Palm Beach Counties. 50411414 V. P.' 414cfer441,11401 With over 6.2 million residents, the 5" 41101, South Florida metropolitan area is - easily the most populous in Florida and the Southeastern United States. It is 1116" also eighth-most populous in the United States. It is part of the South Florida it region and is partially synonymous with ■ Miam. Dade the Gold Coast. ■ Broward ■ Palm Beach The South Florida metropolitan area consists of three distinct metropolitan divisions, subdividing the region into three divisions according to the region's three counties: • Miami-Dade County. • Broward County, and • Palm Beach County. ,. MIAMI FORT LAUDERDALE PALM BEACH Metropolitan divisions include Miami, Fort Lauderdale, and Palm Beach. The largest cities by population in the South Florida Region are noted on the following table: WALTER DUKE +PARTNERS CO 4'';JC A''_RFA. FS'ATF A;VA'O. Page 175 of 358 ADDENDA South Florida MSA Largest Cities CITY POPULATION (2020) COUNTY Miami 497,924 Miami-Dade Hialeah 239,956 Miami-Dade Fort Lauderdale i 189,321 Broward Pembroke Pines 168,949 Broward Hollywood 151,818 Broward Miramar 138,873 Broward Coral Springs 129,263 Broward West Palm Beach 116,781 Palm Beach Miami Gardens 114,363 Miami-Dade Pompano Beach 112,941 Broward Davie 105,050 Broward Source: UF—BEBR Current Trends Prior to COVID-19 the South Florida economy was buoyed by strong job growth, a steady housing market, robust tourism, and increased construction activity. The South Florida's economy was in full gear with minimal headwinds outside of the potential for short term economic damage from the COVID-19 related measures. • As of November 2020, Florida has reported roughly half the unemployment claims, relative to its labor market size, when compared to the national average. Florida reported close to 750,000 unemployment claims as of August, with a total labor market of 12 million. Compared to total U.S. unemployment claims over the same period, where close to 22.5 million out of a total labor market of close to 163.5 million have filed claims, Florida is reporting roughly half of the national average. Broward County added 6,500 jobs in the month of September, with Miami and Palm Beach adding 8,000 and 9,200 respectively. • The housing market has nearly fully recovered and is generally in equilibrium except for the Miami condo market, which is overbuilt. The market took a slight pause due to COVID but is generally ok. • Demand by foreign buyers and investors, mainly from South America, has slowed the Miami residential condominium market. Penthouse sales reflect the bulk of residential condo resale activity. • Cruise and air travel have come to a standstill, but 2021 and 2022 bookings are steady. The South Florida hospitality industry has taken a significant hit from the stoppage in passenger cruise lines and air travel and is slowly recovering. • Gross regional economic output was also increasing but has stumbled and will continue to struggle for a few quarters before until it regains its footing. WALTER DUKE +PARTNERS cop—ER; Al Pt..-;5'A'{ IA-JA'CN Page 176 of 358 ADDENDA Other Items of Note: • Major transportation and infrastructure projects are planned or underway to improve the logistics of the region and, therefore. enable it to more effectively compete globally. Major improvements are underway at region airports and seaports. Passenger rail project Brightline opened the Fort Lauderdale—West Palm Beach segment in January 2018. followed by Fort Lauderdale—Miami in May 2018. An extension from West Palm Beach to Orlando via Cocoa is planned to open in late 2021 or early 2022, and more extensions are planned. The train service has been suspended due to COVID but they are moving ahead with the construction of the Orlando station. • The Florida legislature has tabled the matter of expanded gambling in the State of Florida. The most recent bill proposed included two mega-casinos in South Florida. • Foreign investment from South America and Europe has slowed due to geopolitical unrest and a continued strong dollar, which in turn has slowed the Miami condominium market. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE v: Page 177 of 358 ADDENDA Regional Location Map �tl Ij Bcv��t s k , 0-'ray Boca Raton i~ ", fir . > DL;,„�3nOx' CIS► a, 9 10021st St C aro Kay largo Go gie My Maps WALTER DUKE +PARTNERS COMMERC AL REAL ESTATE VALUATION Page 178 of 358 ADDENDA Demographic Characteristics and Trends Due to its temperate weather and relatively low taxes, South Florida has long been a popular retirement destination. As a result, South Florida's median age of 41 years is approximately the same as that of Florida, and four years older than the national average. Overall, South Florida's level of affluence and educational attainment is consistent with national averages. Within the South Florida market, however, there are notable differences between counties with regard to income and educational attainment levels with Palm Beach County having the area's highest levels and Miami-Dade County having the lowest. Overall, nearly 30% of the region's population holds a Bachelor's degree or better, and approximately 18% of its households have annual incomes of greater than $100,000. Other items of note: • The South Florida population is slightly younger than the state average but older than the national average. Palm Beach County is the oldest with a median age of 43.8 years. Miami-Dade and Broward Counties' median ages are 38.8 years and 39.9 years.. respectively. Florida has a median age of 38.7 years compared to the national average of 35.3 years. • According to the US Census Bureau South Florida's median household income tumbled more than 14% in five years, although the decline appears to be slowing. In 2011, the median household income fell to $48,880 in Broward County; $40,552 in Miami-Dade County; and $48,953 in Palm Beach County. The current median family income for Florida is $54,777. Real median family income peaked in 2007 at $63,084 and is now $8,307 (13.17%)lower. • The Census Bureau found that the number of South Floridians living below the poverty level has also increased over the past five years. Last year, 11.1% of Broward families and 11.6% of Palm Beach County families were in poverty. Approximately 15.6% of Miami-Dade residents live below the poverty level versus 15.6%for overall Florida. Demographic Characteristics—South Florida vs. United States Characteristic South Florida U.S. Median Age(years) 39.8 37.4 Average Annual Household $64,767 $69,636 Income Median Annual HH Income $43,311 $49,231 by Annual Income Level: < $25,000 29,4% 25.4% $25,000 to$49,999 26.8% 25.3% $50,000 to$74,999 16.9% 18.1% $75,000 to$99,999 10.2% 11.7% $100,000 plus 16.8% 19.5% Education breakdown: WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUA'ION Page 179 of 358 ADDENDA Characteristic South Florida U.S. < High School 17.3% 14.6% High School Graduate 27.6% 28.4% College<Bachelor Degree 26.8% 28.9% • Bachelor Degree 17.9% j 17.7% Advanced Degree 10.4% 10.4% Source:Claritas, Inc. Population According to the 2020 U.S. Census Bureau estimation, Florida's population is nearing 21.6 million during the past year and added more residents than every state but Texas. No. 1 remains California, with a population of 39.5 million, and No. 2 is Texas, with 28.9 million. The overall U.S. population is 328.2 million. Florida added 233,420 residents from July 1, 2018, to July 1, 2019. That ranked Florida second in number of new residents, as well as ninth in percentage gain, with a 1.10 percent year-over-year increase. With an estimated population of 21.6 million, the migration rate into Florida from other states and other countries was the highest in the country in the past year. More of Florida's population gain was the result of people moving into Florida, rather than babies born here. The relatively narrow difference between Florida's birth rate and death rate kept the state's overall population from growing even faster. This trend has increase as residents continue to emigrate from high tax states Illinois, New York and New Jersey. During the past year, there was a net domestic migration of 132,612 people moving to Florida from other states and a net migration of 129,525 people moving to Florida from other countries. South Florida Population —2020 Estimates County 1990 2000 2010 2020 % Change 2010-2020 Miami-Dade 1,937,194 2,253,786 2,496,457 2,832,794 13.39% Broward 1,255,531 1,623,016 1,748,066 1,932,212 10.53% Palm Beach 863,503 1,131,190 ! 1,320,134 ' 1,466,494 11.09% South Florida 4,056,228 5,007,992 5,564,635 + 6,231,500 11.98% Florida i 12,938,071 15,982,813 18,810,310 21,596,068 14.81% Source State of Florida-EDR Miami-Dade County is the most populous among the South Florida counties, with just over 45% of the region's population, followed by Broward and Palm Beach Counties with WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 180 of 358 ADDENDA 31.0% and 23.5%, respectively. Population projections are depicted in the following table. Population Projections by County—South Florida MSA—2015—2025 Compound Compound Population 2015 2020 2025 Annual Annual (000's) Growth Growth Rate 15-20 Rate 15-25 United States 321,369 334,503 347,335 1.0% 0.9% South Florida 5,859.7 6,231.5 6,540.6 1.2% 1.2% Miami-Dade 2,653.9 2,832.8 2,995.9 1.3% 1.3% County Cou tyd 1,827.4 1,932.2 1,989.8 1.0% 0.9% PalmCountyeach 1,378.4 1,466.5 1,554.9 1.4% 1.3% Source: Fonda Research and Economic Database(BEBR) While sources vary slightly, the consensus is that Florida is growing at a healthy pace and is now the third-largest state in the country based on population. Other population highlights: • Population growth is the state's primary engine of economic growth, fueling both employment and income growth, and helping various sectors of the local economy, including housing, retailing, and health care. That trend is expected to continue, given Florida's favorable climate and low tax environment. This trend has accelerated post COVID. • Florida's population growth is expected to remain above 1.5 percent over the next few years. Most of Florida's population growth through 2030 will be from net migration (92.9%). Nationally, average annual growth will be about 0.75% between 2015 and 2030. • The future will be different than the past; Florida's long-term growth rate between 1970 and 1995 was over 3%. • Between 2010 and 2030, Florida's population is forecast to grow by over 5.2 million persons. • Florida's older population (age 60 and older) will account for most of Florida's population growth, representing 55.8 percent of the gains. • Florida's younger population (age 0-17)will account for 14.3 percent of the gains, while the young working-age group (25-39) will account for 18.3 percent of the growth. WALTER DUKE +PARTN_ERS ZOMMERC.A_ RFA',.FS-A-E ,A'_'... JY Page 181 of 358 ADDENDA Labor Market Employment Distribution — With nearly 2.51 million in the labor force, South Florida represents nearly one-third of the total labor force in the State of Florida, which is primarily a service-based economy. The number can balloon during peak tourism times due to seasonal staffing. Service jobs represent more than 38% of non-agricultural employment. Trade is the most important industry in South Florida followed by tourism. Employment distribution in the Miami MSA is presented on the following table. Employment Industries—South Florida Region Industry Percentage Trade,Transportation&Utilities 23.14% Professional&Business Services 16.98% Education and Health Services 15.27% Government 12.10% Leisure&Hospitality 9.77% Financial Activities 7.57% Construction 5.49% Other Services 4.32% Manufacturing 3.48% Information 1.88% Source. Bureau of Labor Statistics, Southeastern Regional Office, September 2020 Major Employers — The Miami Area MSA is home to nine Fortune 500 companies — World Fuel Services (83), Publix Supermarkets (91), AutoNation (145), Lennar (154), NextEra Energy (184), Office Depot (285), Rockwell Collins (350), Ryder System (363), and MasTec (436) and a number of Fortune 1000 companies. The region's employers include national and international corporations that encompass a variety of industries including retail, biotechnology, and health care. The ten largest private sector employers in the region are ranked as follows: South Florida MSA—Largest Employers Rank '. Employer - Employees Product/Service 1 Publix Super Markets 39,232 Super Market 2 Baptist Health South Florida 23,345 Health Care 3 i University of Miami 16,165 _ i Private College 4 Memorial Healthcare System 14,330 Health Care 5 American Airlines 13,500 Airline 6 1 Jackson Health System 13,000 Heath Care 7 Florida International University 10,728 Public College 8 Broward Health 8,379 Public Hospital 9 Comcast Cable Communications 8,000 Cable Provider _ 10 Miami Dade College 6,673 Public College WALTER DUKE +PARTNERS COVvc4C�..^E.'..E,'n'E vn,_A 0. Page 182 of 358 ADDENDA South Florida MSA—To• Public Sector Em•I• ers Rank Employer Employees 1 Miami Dade Public Schools 38,324 2 Broward County Public Schools 32,899 3 Miami Dade County 28,290 4 Palm Beach County Schools 22,051 5 State of Florida 17,929 6 Broward County 6,312 7 1 Palm Beach County 6,000 Source South Florida Business Journal,Book of Lists, 2019 Employment — Total nonfarm employment for the Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area stood at 2,517,400 in September 2020, down 189,700 or 7.0 percent, over the year, the U.S. Bureau of Labor Statistics reported today. During the same period, the national job count declined 6.4 percent. Regional Commissioner Janet S. Rankin noted that the Miami area has had six consecutive months of unemployment declines. Chart 1. Total nonfarm employment, over-the-year net change in the Miami metropolitan area and its divisions, September 2015—September 2020 Net change(in thousands) 150.0 50 0 111111II111II11lllliila stall las libIi,III■,ll.tam. -50.0 11111 Elm'Nest Palm Beach-Boca Raton-Delray Beach Metropolitan Division -150 0 -- -- Fort Lauderdale-Pompano Beach-Deerfield Beach Metropolitan Division omm Miami Miami Beach-Kendall Metropolitan Division -250.0 -Miami i=on Lauderdale West Palm Beach Metropolitan Statistical Area -350 0 450 0 Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 Source U S Bureau of Labor Statistics All three metros lost jobs over the year. Miami-Miami Beach-Kendall, the largest of the three divisions (45 percent of the area's employment) lost 76,600 jobs from September a WALTER DUKE +PARTNERS '.O'-"EPC AL REAL ES'A?E vA,„4'C N Page 183 of 358 ADDENDA year ago. The Fort Lauderdale-Pompano Beach-Deerfield Beach Division (32 percent), lost 65,900 jobs, while the West Palm Beach-Boca Raton-Delray Beach Division (23 percent) lost 47,200 jobs over the 12-month period. Industry Employment — Employment in Miami's leisure and hospitality supersector fell sharply (-77,600) for the 12 months ending in September, the largest loss of jobs among local major industry sectors. In percentage terms. the leisure and hospitality supersector declined 24.0 percent in Miami: nationwide. the rate of job loss was 21.7 percent. Chart 2 Total nonfarm and selected industry supersector employment.over.tne•year percent change United States and me Miami metropotltan area.September 2020 Pe•cen,chance 50 .:jj 11L1LI111fl1 •,00 -,50 u .i7 0 Unned States •Mame 25 0 Total nOntarT Le'sure amt ,Wt. Proltssenal C0uu00n Gmernmen! OTcr .;nnsewo'Man lcaamq ntymabon Aslnaq and Fro room nospaalty tran,0a,a0on and bvsineis and MW services tort act.sti int Weft lenccs scutes Sown U S 9mea u or LW,Staesocs The trade, transportation, and utilities sector in the Miami area lost 26,700 jobs. a 4.4- percent decline over the year. About half of the jobs lost in this sector were in the Miami metropolitan division (-13.200). Nationally. employment in trade transportation. and utilities was down 3.6 percent over the year. The professional and business services supersector in the local area lost 25.000 jobs, down 5.5 percent, nationwide, employment in professional and business services was down 5.8 percent. Miami's education and health services industry lost 24.500 jobs over the year. down 6.0 percent, nationwide, employment in this supersector was down 4.7 percent. Five other local area supersectors had job losses, ranging from 14.400 in government to 3.200 in information. Financial activities was the only local supersector to add jobs from September a year ago, up 1,300. Job gains in this supersector were concentrated in the Miami metropolitan division (+1,200). Miami-Fort Lauderdale-West Palm Beach was 1 of the nation's 12 largest metropolitan statistical areas in September 2020. All 12 areas had over-the-year job losses during the WALTER DUKE +PARTNERS AL REAL ESTATE VALUATION Page 184 of 358 ADDENDA period, with the rates of job losses in 7 areas exceeding the national decrease of 6.4 percent. New York-Newark-Jersey City had the fastest rate of job loss (-10.8 percent), followed by San Francisco-Oakland-Hayward (-10.6 percent). Phoenix-Mesa-Scottsdale (-2.9 percent) had the slowest rate of job loss. Unemployment—According to the most recent released report from the Bureau of Labor Statistics, the Florida's seasonally adjusted unemployment rate was 10.1% in September 2020. Southeastern Florida—Unemployment Rate Trends • Miami-Dade's unemployment rose from 2.3% to 13.0% from September 2019 to September 2020. • Broward County's unemployment also rose from 2.8% to 8.2% from September 2019 to September 2020. • During that time, unemployment also jumped in Palm Beach County, from 3.2% to 7.0%. • Nationwide, unemployment rates improved from 3.3% to 7.7%. Unemployment rates for the nation and selected areas Unemployment rates 3.3 United States 7.7 27 Miami area 10.1 28 Broward Co. 8.2 2.3 Miami-Dade Co. 13.0 ' .. 3.2 Palm Beach Co. 7.0 i 0.0 5.0 10.0 15.0 Sep-19 ■Sep-20 Source U.S.B15.local Area Unemployment Statistics. WALTER DUKE +PARTNERS COMMFRC-AL RFA'. PSTATF✓AL�A'.t)Y Page 185 of 358 ADDENDA As of November 2020, Florida has reported roughly half the unemployment claims, relative to its labor market size, when compared to the national average. Florida reported close to 750,000 unemployment claims as of August. with a total labor market of 12 million. Compared to total U.S. unemployment claims over the same period. where close to 22.5 million out of a total labor market of close to 163 5 million have filed claims. Florida is reporting roughly half of the national average. Broward County added 6.500 jobs in the month of September, with Miami and Palm Beach adding 8,000 and 9,200 respectively. Fort Lauderdale Job Growth By Employment Sector, Aug-Sep sK SK 4K 3K SSSTTT 117.IK .K II I]K II REIM - 0 K 1111- .�� ` llllllllll, 30 • topirad 0 Costa] Miami Job Growth By Employment Sector, Aug-Sep 3K TK 5K i ri 4K. ,*0 W I 3K K IF 11- . 0 D MVO 1 , a / y ' • WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE vALUA'. Page 186 of 358 ADDENDA Palm Beach Job Growth By Employment Sector, Aug-Sep 'OK „K 8K ESC 8K tK WE 66 n w ,, 0d' 06 4s � � c ins As many states have gradually re-opened their economies the return to some degree of economic normalcy could hinge on figuring out the extent of the damage to the local labor market, as well as putting a support mechanism in place to get money into the hands of those who have lost their jobs. According to Oxford Economics, Florida is the country's fourth-most vulnerable economy following the onset of the coronavirus pandemic. Its ranking is driven by a high exposure to industries that depend on consumer discretionary spending, such as the retail and leisure and hospitality sectors, as well as it's higher-than-average number of residents aged 65 and older and the high percentage of self-employed individuals and small businesses operating across the state. However, adjusting the national 3.7% unemployment rate, pre-crisis, with the new jobless claims filed in the middle of the year provides an unemployment rate of just over 9%. Performing a similar calculation for the 3.1% pre-pandemic unemployment rate across the Florida markets with new jobless claims results in a figure that is closer to a more manageable 8%. WALTER DUKE +PARTNERS OMMERC Al REAL FS__ - ., - Page 187 of 358 ADDENDA Retail tenants and apartment dwellers still remain the most vulnerable, as they make up the majority of those seeing significant loss of business activity or financial hardship caused by job losses. Potential delays in getting federal support checks or small- business loans will exacerbate the cash flow stress that many of those at risk are already facing, and will likely have a compounding negative impact on Florida's commercial real estate sector. Sole proprietors and small retail businesses are especially vulnerable as loss of income, even for a short period of time, can easily push a small company under. While Florida has a similar share of its labor markets in the retail and leisure and hospitality sectors to the national breakdown, the spending drivers are different. Florida depends more on consumer's discretionary recreational spending at places like Disney World, while many other states depend on large corporations and business travel to drive spending. In addition, many in Florida identified difficulties applying for unemployment benefits in March due to reported crashing of Florida's online application for reemployment assistance website because of high traffic volumes. Given the technical difficulties and Florida's exposure to recreational discretionary spending, it is likely that jobless claims reported since the onset of the pandemic do not fully reflect the extent of the true damage to the state's economy and jobs market. Compensation Costs for Wages and Salaries — Total compensation costs for private industry workers increased 1.5 percent in the Miami-Fort Lauderdale-Port St. Lucie, FL metropolitan area for the year ending September 2020, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that one year ago, Miami experienced an annual gain of 2.2 percent in compensation costs. Locally, wages and salaries, the largest component of compensation costs, advanced at a 1.6- percent pace for the 12-month period ending September 2020. Nationwide, total compensation costs increased 2.4 percent and wages and salaries rose 2.7 percent from September 2019 to September 2020. WALTER DUKE +PARTNERS COr- ERC'AL REAL ESTATE VA.-_,A-,ON Page 188 of 358 ADDENDA Chart 1. Twelve-month percent changes in the Employment Cost Index, private industry workers. United States and the Miami area, not seasonally adjusted, September 2018—September 2020 Percent change Percent change 40 40 30 30 2 02 0 10 10 United States total compensation United States wages and salaries Miami total compensation Miami wages and salaries 00 it t t t f t 00 t t I r t t 1 t Sep Dec Mar Jun Sep Dec Mar Jun Sep Sep Dec Mar Jun Sep Dec Mar Jun Sep 2018 2019 2020 2018 2019 2020 Source U S Bureau of Labor Statistics Miami is 1 of 15 metropolitan areas in the United States and 1 of 5 areas in the South region of the country for which locality compensation cost data are now available. Among these 15 largest areas, over-the-year percentage changes in the cost of compensation ranged from 3.6 percent in Washington to 1.5 percent in Miami in September 2020. For wages and salaries, annual changes ranged from 4.0 percent in San Jose to 1.6 percent in Miami. Chart 2 Twelve-month percent change in the Employment Cost Index,private industry workers United States and localities,not seasonally adjusted. September 2020 Percent crarige 45 , ■Tvtai compensation o Wages and salaries 40 ' 3.5 3 0 1 uhf 11 Iffirirri United Atlanta BostonChicago Dallas DetroitHouston Los Miami Mime- New Phila-Phoenix San Seattle Wash- States Angeles apolis York deiphia Jose ington Source U S Bureau of Labor Stabsbcs WALTER DUKE +PARTNERS_ COMMERCIAL REAL ESTATE VALUATION Page 189 of 358 ADDENDA Miami's 1.5-percent increase in compensation costs in the 12-month period ended September 2020 was below the 2.2 to 3.6 percent increase among the South's five metropolitan areas (Atlanta, Dallas, Houston. and Washington). Miami's 1.6-percent gain in wages and salaries over this 12-month period was also the smallest compared to rates ranging from 2.2-percent to 3.9-percent among the South's five metropolitan areas. Consumer Price Index—The Consumer Price Index for All Urban Consumers (CPI-U) for Miami-Fort Lauderdale-West Palm Beach rose 1.0 percent from June to August, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that the index for all items less food increased 1.0 percent over the bi-monthly period. The energy index rose 3.6 percent and the food index declined 0.5 percent from June to August. The all items CPI-U rose 1.4 percent for the 12 months ending in August. The index for all items less food and energy rose 1.5 percent over the past year, while the food index jumped 7.9 percent. In contrast. the energy index fell 9.1 percent over the past 12 months. Chart 1. Over-the-year percent change in CPI-U, Miami-Fort Lauderdale-West Palm Beach, FL, August 2017—August 2020 Percent change 50 All items All gems less food and energy 40 30 2 0 10 00 I — - .+ —+ + r r 10 Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug 2017 2018 2019 2020 Source U S Bureau of Labor Statistics • The food index declined 0.5 percent from June to August, reflecting decreases in the food at home (-0.6 percent) and food away from home (-0.3 percent) indexes. The food index advanced 7.9 percent for the 12 months ending in August. led by WALTER DUKE +PARTNERS COMMS' F;,, (�rATE VALUA,;ON Page 190 of 358 ADDENDA an 11.9-percent jump in the food at home index. The food away from home index also increased over the past 12 months, up 2.4 percent. • The energy index rose 3.6 percent from June to August, reflecting a 7.3-percent increase in the gasoline index. In contrast, the utility (piped) gas service index edged down 0.2 percent over the bi-monthly period. The electricity index was unchanged from June to August. The energy index fell 9.1 percent for the 12 months ending in August, led by a 13.9-percent decline in the gasoline index. The electricity index also declined, down 3.2 percent over the past 12 months. ▪ The index for all items less food and energy rose 1.0 percent from June to August. Shelter (0.8 percent), used cars and trucks (9.1 percent), and apparel (8.7 percent) were among the indexes to increase over the bi-monthly period. The index for all items less food and energy advanced 1.5 percent for the 12 months ending in August. The shelter index increased 1.7 percent over the past 12 months, while the medical care index advanced 3.9 percent. Motor vehicle insurance (-8.5 percent)was among the indexes to decline over the past year. Housing Market Sales activity spiked throughout South Florida in September, including condo sales. Single-family homes sales jumped 24.6% to 4,567 in the tri-county area, compared to September 2019. The median sales price climbed 14% to $419,000. Statewide, single- family home sales were up 22% and the median sales price grew 13.2% to $300,000. While condo sales have fallen sharply during the Covid-19 pandemic, there was a sharp rebound in September. There were 3,939 condo/townhouse sales in South Florida, a 12.1% increase. The median sales price was up 10.6% to $220,000. Statewide, condo/townhouse sales soared 25.3% while the median was price increased 12.7% to $217,500. "And all indications are that we will continue to see strong sales this fall as mortgage interest rates will almost certainly remain at or near record lows," said Brad O'Connor, chief economist at the Florida Realtors. "New pending sales of single-family homes were very strong in September, rising by 31.4% year-over-year, while new pending sales of condos and townhouses were up a dramatic 43%." Miami-Dade Single-family home sales jumped 19.3% to 1,288 while the median sales price increased 15.2% to $435,000. Sales were especially strong in the luxury market, with a 76.7% sales volume increase for homes of $1 million and up. Active listings dropped 37%, so WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 191 of 358 ADDENDA the supply of inventory at the current sales pace was down to 3.8 months. That's a seller's market with relatively few homes for buyers to pick from. Sales of condos/townhouses in Miami-Dade were up 6.3% to 1,233 while the median sales price increased 8.2% to $265,000. Active listings declined 7%, so the supply of inventory at the current sales pace increased to 13.8 months. That's a buyer's market, with an over-supply of inventory for sale. Broward Single-family home sales surged 24.9% to 1,535 while the median sales price grew 15.6% to $425,000, according to the Broward, Palm Beaches & St. Lucie Realtors. Sales of$1 million-plus homes soared 204%. Active listings plummeted 39%, so the supply of inventory at the current sales pace fell to 2.6 months. That's a seller's market with extremely tight inventory levels. Sales of condos/townhouse in Broward were up 5.2% to 1,449 while the median sales price increased 11.8% to $190,000. Active listings inched up 2%, so the supply of inventory at the current sales pace grew to 6.5 months. That's a fairly balanced market between buyers and sellers. "It's safe to say that the Covid-19 pandemic hasn't deterred buyers from purchasing homes," said Jarrod Lowe, president of the Broward, Palm Beaches & St. Lucie Realtors. ''Low levels of inventory and historically low interest rates have played a huge role in the continued growth of Broward County prices." Palm Beach County Sales of single-family homes jumped 28.6% to 1,744 while the median sales price increased 12.7% to $400,000, according to the Broward, Palm Beaches & St. Lucie Realtors. For homes of $1 million and up, sales surged 72.1%. Active listings dropped 33%, so the supply of inventory at the current sales pace declined 2.9 months. That's a seller's market with extremely tight inventory levels. Condo/townhouse sales in Palm Beach were up 28.8% to 1,257 while the median sales price climbed 9.4% to $206,250. Active listings were flat, so the supply of inventory at the current sales pace increased to 5.1 months. That's a seller's market. Hospitality and Tourism Market Visit Florida, the state's official tourism marketing corporation, announced that 131.4 million out-of-state visitors came to Florida in 2019, a record number as compared to 126.1 million in 2018. That is the ninth consecutive record-breaking year for Florida WALTER DUKE +PART N ERS COMMERCIAL REAL ESTATE VALUATION Page 192 of 358 ADDENDA tourism. Visit Florida has concluded that in Q1 of 2020: over 31.4 million visitors have come to Florida. However, due to COVID-19. numbers are expected to fall severely. Visit Florida also estimated: • Florida has seen 10.93 million overseas visitors and 3.63 million Canadians in 2019, in addition to 116.88 million domestic visitors. • So far in 2020, Florida has seen 2.42 million overseas visitors and 1.23 million Canadians in addition to 40.54 million domestic visitors. • Passenger rates at the Fort Lauderdale International airport have declined as well as cruise ship passengers visiting Port Everglades • As of August 2020, total flyers stood at 880,000, down from 3.3 million in January 2020. • Port Everglades has temporarily discontinued cruises leaving the port. which saw numbers of 522,000 passengers in January 2020 alone. Hospitality/Tourism trends in the South Florida market are as follows: ▪ The sharing economy continues to threaten the hospitality market albeit the market is currently on hold due to COVID.. A study from the American Hotel & Lodging Education Foundation found that the practice of frequently listing multiple properties on Airbnb was more prevalent in South Florida than in the nation's other largest metropolitan areas. Currently. less than 1 percent of the 15.4 million people who visited Miami-Dade County last year used Airbnb. That portion is expected to grow coincident with Airbnb's explosive growth. but attempts at regulation are well underway in many South Florida cities. The City of Miami Beach is currently in litigation with Airbnb. • Global warming is also a potential challenge to South Florida's hospitality sector. Last year due to the extremely warm winters, less people traveled south. • Airport and cruise travel have significantly been impacted due to Covid-19. • The South Florida hospitality and tourism market has taken a major financial hit during 2020 due to the federally imposed restrictions on cruise and airline travel stemming from the Covid virus fight. • Hotel occupancies rates currently stand at ±50%, with average daily rates seeing similar numbers. • In May 2020. RevPAR dropped -71.0% while Noon, occupancy rate declined to 33.1%. More INf S than 1 in 10 hotel rooms closed, leading from 'a ._ + April 2020 being the worst month of this year. WALTER DUKE +PARTN ERS COMMERCIAL REAL ESTATE VALUATION Page 193 of 358 ADDENDA Household Formation During the real estate crisis, housing formation dropped by over half in the region. The following table compares historical and projected growth trends in household formation in South Florida and Florida overall. Household Formation by County—South Florida—2000 -2019 Households Percent Percent (000's) 2000 2010 2019 Change Change 00-10 10-19 Florida 6,338.1 7,420.8 - 8427.7 17.1% ) 13.6% South Florida 1,905.5 , 2,107.6 2,336.3 : 10.4% I—10.9% Miami-Dade 776.9 867.4 986.2 1 } 11.6% 113.7% County Broward 654.4 686.0 751.8 4.8% 9.6% County Palm Beach 474.2 554.2 598.3 14.8% 7.9% County Source OF-BEBR Miami-Dade County had the largest increase in households state-wide between 2010 and 2019, growing by 118,801, followed by Broward increasing by 65,769, and Palm Beach increasing by 54,064. The recovery of sustained household formation is a concern for the region but a recent surge of millennials has entered the workforce and the housing market has recovered, so it is likely that these trends will help household formation. South Florida Banking Nearly all South Florida-based banks observed a loss in net income during Q2 2020. however, most still turned a profit according to the Federal Deposit Insurance Corp. Miami Lakes-based BankUnited was South Florida's most profitable financial institution in the second quarter of 2020, with net income of $80.6 million. BankUnited reported a loss of$22.2 million in first quarter of the year. Although most South Florida banks earned a profit, it was far below what they generated in recent quarters, according to FDIC data. The most profitable local banks include: • Miami-based City National Bank of Florida, with net income of $25.8 million. That's down from the $39.2 million from a year ago in the second quarter of 2019. • Coral Gables-based BAC Florida Bank, with $5.5 million, down from $6.2 million in 01. WALTER DUKE +PARTNERS COMM57C.AL PE At.ES'A-E VAL.:A"ICH Page 194 of 358 ADDENDA • Coral Gables-based Professional Bank, with net income of$3.59 million, up from $677,000 during the same period the year before. The bank became a publicly traded company earlier this year. • Coral Gables-based Banesco USA with $3.17 million, up from $2.07 million in quarter one and $1.9 million in 02 2019. • Coral Gables-based Amerant lost $13.8 million in the second quarter. It was Florida's second least-profitable bank last quarter. • Eight South Florida banks, including BankUnited, had first quarter losses. They include: • Miami-based Eastern National Bank with a loss of $1.2 million. The bank lost $1.58 million in the fourth quarter of 2019. • Miami-based lntercredit Bank, with a loss of $467,000. The bank earned $575,000 in Q4. • Hallandale-based Home Federal Bank of Hollywood with a loss of $332,000. It lost $218,000 in 04. • Miami-based Pacific National Bank with a loss of $230,000. The bank earned $486,000 in 04. • Miami-based Ocean Bank with $6.06 million, a decline from $9.4 million in Q4. The state's 102 federally-insured banks had a combined net income of(-$90,000) during the second quarter while banks reported a loss of$281,000 in the first quarter, according to FDIC data. While net income was down, Florida banks increased loans by a combined $2.4 billion in 01, the FDIC reports. The non-current loan ratio, representing loan balances 90 or more days past due, was 2.84%, only slightly higher than the 2.76% rate reported in Q4. However, the state's non- current loan ratio has been steadily rising since the first quarter of 2019, when it was 2.53%. Florida banks had almost $192 billion in deposits, up $22 billion from 01. That could be a sign that consumers and businesses are focused on saving, rather than spending, their money. Nationwide, the banking industry's net income fell 70% compared to a year ago, a reflection of the economic decline resulting from the Covid-19 pandemic, the FDIC reported. Almost 48% of all institutions reported annual declines in net income. WALTER DUKE +PARTNERS C04'^E4C,Al REA.ES-A'E .'n.un-,OV Page 195 of 358 ADDENDA "Lower levels of business activity and consumer spending — combined with uncertainty about the path of the economy and the low interest rate environment — contributed to higher provisions for loan and lease losses, as well as a decrease in net interest margins," she said, describing the factors the led to profit losses. Despite the Trump Administration relaxing regulatory matters, banks continue to operate in a challenging environment, particularly community banks. Low interest rates for an extended period have led some institutions to reach for yield, which has increased their exposure to interest-rate risk, liquidity risk, and credit risk. Current oil and gas prices continue to affect borrowers that depend on the energy sector, and have had an adverse effect on asset quality. These challenges will only intensify as interest rates normalize. Other South Florida banking/lending trends are noted as follows: • The Fed has continued to cut rates throughout 2020, and is expected to continue with this trend. • Branch banking has slowed with trends moving towards mobile banking and Drive-Thru banking. • Mergers and acquisitions should be announced as community banks are motivated due to burdensome Federal regulations. BB&T and SunTrust merged in a $66 Billion deal to form the nation's 6`h largest bank. • The industry has started to lay off employees mostly in the mortgage space. Conclusion/Key Points • Market data strongly suggests that the South Florida economy was generally robust with only minor headwinds prior to COVID but Florida has exposure in the travel and hospitality space and the state economy, including South Florida has suffered greatly. • Key economic variables such as population growth, employment growth, and housing, have all shown improvement prior to COVID and will need to rebound over the balance of 2020 and into 2021. • Key ties to South America and Europe, that have helped fuel a housing market rebound, and strong ties to Latin America and the Caribbean, have slowed but remain a key driving force in the expansion in trade in the region. • Prior to COVID, tourism had fully rebounded and there was expansion in the hospitality sector, although average occupancy had dropped off a bit with the introduction of new product. Post COVID the economic pain is considered to be severe for the balance of 2020 but slowly recover during 2021. WALTER DUKE +PARTNERS COO MFR(.A, WEA"ESTA'E A'_..:A"ON Page 196 of 358 ADDENDA • Investments in infrastructure will also benefit the region coincident with the opening of the Panama Canal. • South Florida commercial real estate is in state of flux with reduced transactional volume. COVID impacts are on a property by property basis and vary by location. Suffice it to say however the South Florida commercial real estate market has been mostly negatively impacted. • The Federal Reserve recently underwent additional quantitative easing and interest rates are now near zero for the first time in history. • Florida's electorate recently elected a pro-business governor which favors the Florida economy. However, the economic impact of the President's administration's fiscal and business policies on the South Florida policy, namely tariffs is still being played out. • Most experts agree the coronavirus will negatively impact the domestic economy but to what extent is unknown until it fully plays out. Of particular concern is the negative impact on hospital,ty and tourism, one of South Florida's major industries. WALTER DUKE +PARTNERS_ :'OMMERCIAL REAL ESTATE VALUATION Page 197 of 358 ADDENDA NEIGHBORHOOD DESCRIPTION 3# r - amu ,. r s. _ €• _. ., .;._ _ WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 198 of 358 ADDENDA Neighborhood Location Map of r AUTILUS 0 MID-BEACH BAYSHORF cl 1/" Q 10021st St CITY CENTER £ NET;AN ISLANDS Miam Beacr D = ,"FST AVENUE SOUTH BEACH AR, PALM NiE tSCIt` FLAMINGO SLANDS LUMMUS 0 0. ;..•. 5th St ie IsIand SO.;TH OF FIFTH Go gle My Maps WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 199 of 358 ADDENDA Area/Neighborhood Description General Location & Boundaries The subject property is located at the southeast corner of Collins Avenue and 7'" Street in Miami Beach. For purposes of this analysis, the subject neighborhood is defined as the area situated: • East of Downtown Miami; • West of the Atlantic Ocean, located approximately 1/2 mile east; • South of the Arthur Godfrey Road; and • North of the Fisher Island. Location — The subject property is located within Miami Beach, a municipality which is situated on the barrier islands of Miami-Dade County between Biscayne Bay to the west and the Atlantic Ocean to the east. The bay separates Miami Beach from the city of Miami. 31c,44„1.10, ..., w: ,_ _,._:,_„:, _ ...,v,.. _.._ .__ : 4,41,,,, ,, -..: ... __.,,,,,.,..., ,,_ _, „_,._.... _ . AW--,r-,-4.---,ft '' ;-, a...ae-1 . -. - 't t' i `tat k-- it . "`7'.__4d. 411;*". —ir..k.,, : - - " _� y ' ri ` 1---- � Miami Beach Viewing Southeast Downtown Miami is located approximately three miles west of the subject. The immediate neighborhood is defined as the areas south of Dade Boulevard and north of Government Cut and are also known as the South Beach area of Miami Beach. Miami Beach comprises the county's barrier islands along the Atlantic Ocean from the South Beach area north to the Town of Surfside. WALTER DUKE +PARTNERS COMMERC''AL REAL ES?A-E vAL.J A-'CN Page 200 of 358 ADDENDA Access — Due to its island location, primary access to the neighborhood is provided by three causeways to the mainland areas of Miami-Dade County to the west. The Julia Tuttle Causeway/Interstate 195 at 4152 Street in Miami Beach, runs west, and eventually connects to Interstate-95 and the Airport Expressway (State Road 112) in mainland areas of Miami The Venetian Causeway connects to Dade Boulevard just north of 17'h Street in Miami Beach, and the MacArthur Causeway/I-395 extends east/west from 5th Street to the north end of the Miami CBD. Washington Avenue, Collins Avenue. and Alton Road are the primary north/south roadways through Miami Beach, while Dade Boulevard. 415' Street, 17'h Street and 5' Street are the major east/west traffic arteries. Washington Avenue, Collins Avenue, and Alton Road are the primary north/south roadways through Miami Beach. while Dade Boulevard, 415' Street. 17'- Street and 5'" Street are the major east/west traffic arteries. ti. t Y t „ft"- , Collins Avenue Description of Uses — Primarily developed since the 1920s. this neighborhood featured larger resort hotel properties along the oceanfront, with smaller apartment properties to the west of the community's oceanfront areas. By the 1960s, high-rise condominium development began to accompany the hotel projects, particularly on waterfront sites along Indian Creek and later spreading to oceanfront and bayfront properties throughout Miami Beach. Some single-family residential uses are noted in the western portions of the neighborhood. particularly in the area surrounding Alton Road, as well as the Sunset Islands and Venetian Islands in Biscayne Bay. Supporting commercial uses such as strip retail buildings and freestanding stores and restaurants front the major thoroughfares including Collins Avenue, Washington Avenue. Alton Road and 5' Street. Mixed-use hotel and residential projects with ground-floor retail are prevalent along these thoroughfares as well. Office buildings are located near the heart of the city just north of Lincoln Road along 17" Street. which is also where the City Hall and the Miami Beach Convention Center can be found. WALTER DUKE +PARTNERS ,.0MMERCIAL REAL ESTATE VALUATION Page 201 of 358 ADDENDA One of the most significant proposed developments in this area of Miami Beach over the past five years was a proposed pedestrian friendly, five-level parking structure and pedestrian plaza to be built by the City of Miami Beach to be located on the existing surface lots on the north side of the Miami City Ballet and the Miami Beach Regional Library. The project would span Liberty Avenue and include a retail and restaurant plaza. The project was designed by Zaha Hadid Architects, a firm out of London. Construction of the project was projected to begin in 2014 with a projected date of completion in 2015. The estimated cost of this project was $18.5 million. However, as of December 2015, construction had not yet begun. In late 2015. the city commissioners asked for other development proposals for the garage. In March 2016, the architect died unexpectedly at age 65. Developers have proposed a public-private partnership with the city of Miami Beach to build the structure. rimwomminmom, ,moi 49: .. Zaha Hadid Parking Garage However, the city preferred that the garage remain public with lower parking costs to the public. After soliciting new proposals for the project, Miami Beach awarded the contract to KVC Constructors in September 2017 for a guaranteed maximum price of $22.47 million. The new architect is Shulman + Associates. The new seven story garage will total 180,064 square feet, with 513 parking spaces and 15,000 square feet of retail space along 23'd Street, Liberty Avenue and Park Avenue. Site work began in September of 2018 and the project is currently ongoing. To the south, Washington Squared is under construction along the east side of Washington Avenue spanning between 6`h and 7'^ Streets. At completion the 7-story project will comprise ±47,000 SF of ground floor retail, 312 micro hotel suites and structured parking. The block was assembled in 2015 for $32.75 million. Construction commenced in 2018 and should be completed in 2021. WALTER DUKE +PARTNERS COMMERCIAL REAL ES-n-E VALUATION Page 202 of 358 ADDENDA t ' } Nov • • i 1 M Washington Squared Lincoln Road, running east/west between 16th and 17th Street, is a famous pedestrian mall between Washington Avenue and Lenox Avenue that is lined with shops, sidewalk cafes, bars, restaurants and art galleries. In the 1960s, Miami Beach architect Morris Lapidus, well known for his work on the famous Fontainebleau and Eden Roc Hotels in Miami Beach, redesigned Lincoln Road to reflect the Mid-Century Modern architectural (or "MiMo") style, lining the road with gardens, streetscaping and fountains, and making the road one of the nation's first pedestrian malls. " ''" ,• , .4.111 'If 7 ...Lao& v. Today, Lincoln Road features some of the highest-priced retail space in the state, which is accompanied by a concert hall for the New World Symphony Orchestra, a state-of-the-art multiplex cinema, and the recently restored/renovated Colony Theatre, a 440- .• seat performance theater. The restoration of the theatre c. - ..a' Along cost around $6.5 million and took three years to complete. In June 2012, a REIT paid $132 million for the 166,500-square foot retail center at 1100 Lincoln Road. This 'rose is the home to Resat Cinemas and Banana Re.ublic and WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 203 of 358 ADDENDA includes a 298-space parking garage. A retail/commercial property located at 530 Lincoln Road sold on December 13, 2013 and at that time set a record price of $3,418 per square foot. The 8,776-square foot property was previously approved for renovation. However, on May 7, 2014, the 8,375-square foot retail property located at 818 Lincoln Road sold for $34.500,000 or 54.119 per square foot. This price record didn't last long as 718 Lincoln Road (6.943 square feet) sold for $4,969 per square foot on May 14, 2014. On October 21 2014. a new record was set by the sale of the ArtCenter Building at 800 Lincoln Road for $4.999 per square foot. At the time. the biggest property sale on Lincoln Road occurred on August 18, 2014. Morgan Stanley Real Estate Investing paid $342,000,000 for a six-building retail portfolio. The price equates to $3,017 per square foot. It was one of the highest price deals in South Florida history. On March 25, 2016, Playa Retail Investments, LLC purchased a 74,887-square foot retail portfolio of buildings from 1001 to 1045 Lincoln Road for $370,000,000 or $4,941 per square foot. It was at the time, the highest price deal on Lincoln Road and the second largest real estate transaction ever in Miami Dade, second only to a 50% stake in the Fontainbleau Hotel that was purchased for 5375.000.000 in 2008. The buyer is an affiliate of Spanish billionaire Amancio Ortega. To date. the highest per square foot price paid on Lincoln Road was for the 5,000-square foot retail property located at 635-639 Lincoln Road for the recorded price of $35,000,000 or $7,000 per square foot. In May 2018, a retail building at 947 Lincoln Road sold for S25.65 million as a . . redevelopment property. The property • last sold for $301.000 in 1986. The «•, ` " property was purchased with an 8,625 square foot retail building build in 1925. AO ! ii ^r ' In 2017, the city approved a plan to redevelop the building, with an expansion to 13.871 square feet and a height increase from 24 feet to 36 feet. As part of the plan the owner will renovate and restore the original Michigan Avenue facade and create a new modern building behind it, facing the popular Lincoln Road pedestrian strip. In October 2015. Miami Beach Commissioners approved a final master plan for Lincoln Road that will overhaul the pedestrian only street. The plan includes enlarging sidewalks. adding extensive landscaping and turning some side streets and back alleys into pedestrian walkways that will serve as new retail and restaurant venues. The plan calls for creating 15-foot wide strips allowing for open air dining that will have new canopy structures built into the ground at regular intervals with central columns holding WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALU•TION Page 204 of 358 ADDENDA electrical outlets for lighting. The city's CRA allocated $22 million for the pedestrian only part of Lincoln Road and $12 million in additional funding to redesign and reconstruct side streets and back alleys. However, in 2017 the updated plans were revealed at a cost of $43 million, nearly double the original budget. However, the city plans to cut costs by modifying designs when the budget is renegotiated in late 2017. As of late 2018, the design phase has not yet been completed and as of 2020 the project is underway. After years of unpreceded increases in retail rents along Lincoln Road, many brokers and market participants reported that the market had peaked in late 2016/early 2017 as many owners dropped asking rents from a high of $375 to $450 per square foot to the current level of$250 to $265 per square foot. Many vacancies are taking longer to lease up. Despite the market correction, the shopping district remains healthy and is still ranked among the top shopping, dining and entertainment district in the world because of the volume of visitors. The largest land use within the subject's neighborhood is the Miami Beach Convention Center which is located along Washington Avenue just north of 17th Street. This center contains more than one million square feet of space for meetings. Located on the convention center property is the famous Jackie Gleason Theatre. The theatre, originally built in the 1960s, was renovated in 2007 and now managed by Live Nation featuring live concerts, productions, and special events. The Holocaust Memorial and the city's Botanical Gardens are adjacent to the convention center to the northwest. Miami Beach has been one of America's pre-eminent beach resort communities for almost a century. The Fontainebleau Hotel is one of the most historically and architecturally significant hotels on Miami Beach. Built in 1954, it was considered the most luxurious hotel on Miami Beach. The Fontainebleau is situated on the oceanfront along Collins Avenue in the heart of"Millionaire's Row," fronting the Atlantic Ocean, The 1,504-room resort's most distinguishing features include two new towers, 11 restaurants and lounges, a 40,000-square-foot spa with mineral-rich water therapies and co-ed swimming pools, and a dramatic oceanfront pool. The hotel closed a large part of its property in 2006, when the hotel underwent a $1 billion, two-year renovation and expansion. The renovated hotel re-opened in November 2008. Other major resorts along Miami Beach include the Eden Roc, the Ritz Carlton, the Loews Miami Beach Hotel, The Shore Club, The Setai, and the W South Beach, a 312-room luxury resort located at the corner of Collins Avenue and 23rd Street. South Beach is one of the more popular areas of Miami Beach, which generally encompasses the beach area between the Government Cut ship channel at the south WALTER DUKE +PARTNERS Page 205 of 358 ADDENDA end of the city and 215' Street. As larger new resort properties began spreading northward in Miami Beach by the 1960s. South Beach fell into a period of decline, with increasing vacant buildings. urban blight. and crime. Today, however, it is considered one of the most-valuable commercial areas in South Florida, after a pronounced renaissance that began in the late 1980s. In 1979, South Beach's Art Deco Historic District was listed on the National Register of Historic Places. The Art Deco District is the largest collection of Art Deco architecture in the world and comprises hundreds of hotels; apartments and other structures erected between the 1920s and 1940s. The Historic District is generally bound by the Atlantic Ocean to the east Lenox Court to the west, 6th Street to the south. and Dade Boulevard to the north, Miami Beach was in a redevelopment stage that began in the 1980s after investors and preservationists saved South Beach's Art Deco buildings from potential demolition. This redevelopment gradually spread from the community's oceanfront areas westward into the mid-1990s as demand gained momentum. The success of designating and promoting the Art Deco District led preservationists and city leaders to designate additional areas in the city, including some of Miami Beach's neighborhoods that are outside of South Beach. The few remaining vacant sites along the oceanfront and Biscayne Bay were purchased for development of luxury hotels and condominiums. This was followed by the purchase of older, low-rise motel and hotel properties to the north and south of the Art Deco District that had outlived their economic viability. The pricing structure of these new luxury condo units typically ranges from over $250,000 to well over S1.0 million. This gentrification of the neighborhood. however, began to push out its older and original residents. The increased demand for living quarters in Miami Beach and South Beach resulted in strong increases in rental rates and property values. This trend caused the displacement of lower-income residents from many buildings and the loss of retailers providing basic services to local residents. However, the housing crisis over the past several years had produced downward pressure on housing prices and rental rates. making the area slightly more affordable for the middle class. The North Beach neighborhood has experienced recent speculative land sale activity for future redevelopment by several developers. The TC-1 zoning district was recently amended to allow for floor area ratio densities of 2.25 and building heights of 125 feet and 12 stories. Additionally a boutique hotel was approved for North Beach The Miami Beach Design Review Board approved Spider's 44 room boutique hotel on a 22.000- square foot site at 8011-8035 Harding Avenue. Proximity to Supporting Facilities — The proximity to schools. medical facilities, parks. shopping and employment centers is considered to be adequate -- ---- WALTER DUKE +PARTNERS COMMF.P=.AL REAL ESTATE VA,,.A Page 206 of 358 ADDENDA Health Care Facilities — Mount Sinai Medical Center is the nearest comprehensive medical hospital to the subject. Founded 1949, Mount Sinai is the largest private, independent, not-for-profit teaching hospital in South Florida, and contains 955 licensed beds and over 700 physicians and is located along Biscayne Bay just north of 41s' Street in Miami Beach. Employment — The subject property is approximately three miles east of the Central Business District (CBD) of Miami. This is the urban center of business activity within Miami-Dade County containing regional and national financial institutions, legal and accounting firms and governmental offices. Schools—Schools include Miami Beach Senior High School, Nautilus Middle School and the South Pointe Elementary School. In addition to the schools above, Miami Beach and Miami-Dade County have several private and religious schools, colleges and universities. Parks and Recreation — There are adequate recreational facilities within the Miami Beach area. The Miami Beach Golf Club is a public golf facility situated along the east side of Alton Road, north of Dade Boulevard. Flamingo Park is located at the center of the South Beach neighborhood. This park, at 11th Street and Jefferson Avenue, contains 36.53 acres featuring a state-of-the-art football field, basketball courts, tennis courts, a pool, a dog park, and a new playground. The park also provides after-school and adult programs. Retail/Shopping & Entertainment— Lincoln Road represents the heart of shopping in the subject's immediate area, featuring national retailers such as The Gap, Pottery Barn, The Apple Store, American Apparel. and Anthropologie, as well as local shops, restaurants, bars, and cafes. Just north of Lincoln Road at the corner of Meridian and 17th Street is a Macy's department store. A similar trend has occurred along Collins Avenue between 5th and 10'h Streets, where older Art Deco buildings were gutted and remodeled for adaptive uses as freestanding retail stores. This drew national retailers to this location, including The Gap, Victoria's Secret, Banana Republic, Ralph Lauren, Sephora, Tommy Hilfiger, and Zara. Publix Supermarkets are located at Dade Boulevard and Michigan Avenue, with a second store at West Avenue and 20"' Street. Clusters of retail stores are located along Alton Road, Arthur Godfrey Road, Collins Avenue and Washington Avenue through Miami Beach. While stores along Collins Avenue and Washington Avenue tend to cater to tourists and visitors. Alton Road and Arthur Godfrey feature businesses catering to the local residential population. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 207 of 358 ADDENDA An 180,000-square foot community center was completed in 2009 at Alton Road and 5t Street in Miami Beach, housing Best Buy, Publix, Ross, Staples and T.J. Maxx. This property was purchased by EDENS in late 2012 for an undisclosed price. Total Wine replaced Staples in the center in 2015. The store opened on October 15, 2015. The neighborhood's multi-screen cineplex is located in another vertical development along Alton Road at the west end of Lincoln Road Mall. Summary — The subject's Miami Beach neighborhood features a broad mix of high- density land uses creating a unique urban neighborhood with excellent access to the Atlantic Ocean beaches. This mixture has proved popular with residents and visitors, with commercial zones along major roadways emerging as some of the region's most- popular retail/entertainment districts. The gentrification of the neighborhood's Art Deco buildings spurred greater demand for housing, retail, office and hotel rooms in this market, illustrated by additional development activity. This has caused some issues with parking and development direction. Development is strictly controlled by preservation ordinances in order to protect the architectural integrity of its many Art Deco buildings. This factor, and the lack of available land for additional development, is a positive influence for investment in the market. Additionally, new development has slowed over the past year and the area now competes with the Wynwood neighborhood and downtown Miami for retail and restaurant patrons. Nonetheless, the long-term outlook for this neighborhood is quite positive for well-conceived and well-located commercial and residential properties. WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALVA^OV Page 208 of 358 ADDENDA DEMOGRAPHIC PROFILE WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUAT1ON Page 209 of 358 • s" esri Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 1 mile radius 2020-2025 2020-2025 Summary 2020 2025 Change Annual Rate Population 17,568 17,991 423 0.48% Households 10,001 10,166 165 0.33% Median Age 40.8 41.3 0.5 0.24% Average Household Size 1.72 1.74 0.02 0.23% 2020 2025 Households by Income Number Percent Number Percent Household 10,001 100% 10,166 100% <$15,000 1,314 13.1% 1,188 11.7% 515,000-524,999 1,094 10.9% 967 9.5% $25,000-$34,999 1,030 10.3% 944 9.3% $35,000-$49,999 1,292 12.9% 1,205 11.9% $50,000-$74,999 1,580 15.8% 1,552 15.3% $75,000-$99,999 1,050 10.5% 1,140 11.2% $100,000-$149,999 1,094 10.9% 1,266 12.5% $150,000-5199,999 640 6.4% 795 7.8% $200,000+ 907 9.1% 1,109 10.9% Median Household Income $53,089 $60,341 Average Household Income $86,897 $100,343 Per Capita Income $49,898 $57,158 Data Note:Income,s reported for households as of July 1,2020 and represents annual income for the preceding year,expressed in 2019 dollars. Income is reported fu- households as of July I,2025 and represents annual Income for the preceding year,expressed in 2024 dollars Source:11.S.Census Bureau,Census 2010 Summary Ftle 1.Esri Forecasts for 2023 and 2025. November 05, 2020 Page 210 of 358 ll • TR.'1 esn Household Income Profile 100 21st St, Miami Beach, Florida,33139 Prepared by Esri Ring: 1 mile radius 2020 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 502 2,245 2,062 1,709 1,440 1,016 1,028 <$15,000 86 247 188 145 195 212 242 $15,000-$24,999 75 212 187 119 137 155 208 $2S,000-$34,999 71 260 237 140 136 92 94 $35,000-$49,999 72 376 270 184 150 111 129 $50,000-$74,999 84 369 308 283 228 153 157 $75,000-$99,999 62 254 255 159 152 90 78 $100,000-5149,999 33 270 222 234 171 92 73 $150,000-$199,999 10 152 178 151 82 48 20 $200,000+ 10 105 218 294 190 62 28 Median HH Income $38,153 $51,284 $59,957 $72,990 $59,044 $40,509 $31,287 Average HH Income $54,428 $75,504 $96,856 $119,697 $100,162 $69,708 $51,453 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 1000/0 100% 100% 100% 1000/0 <$15,000 17.1% 11.0% 9.1% 8.5% 13.5% 20.9% 23.5% $15,000-$24,999 14.9% 9.4% 9.1% 7.0% 9.5% 15.3% 20.2% $25,000-$34,999 14.1% 11.6% 11.5% 8.2% 9.4% 9.1% 9.1% $35,000-$49,999 14.3% 16.7% 13.1% 10.8% 10.4% 10.9% 12.5% 550,000-$74,999 16.7% 16.4% 14.9% 16.6% 15.8% 15.1% 15.3% $75,000199,999 12.4% 11.3% 12.4% 9.3% 10.6% 8.9% 7.6% $100,000-$149,999 6.6% 12.0% 10.8% 13.7% 11.9% 9.1% 7.1% $150,000-$199,999 2.0% 6.8% 8.6% 8.8% 5.7% 4.7% 1.9% $200,000+ 2.0% 4.7% 10.6% 17.2% 13.2/a 6.1% 2.70/0 Data Note:Income is reported for households as of July 1,2020 and represents annual income!or the preceding year,expressed in 2019 dollars. Income is reported for households as of 3uty 1,2025 and represents annual income for the preceding year,expressed rn 2024 dollars Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2020 and 2025. November 05, 2020 Page 211 of 358 • , ----, (v`..) esri Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 1 mile radius 2025 Households by Income and Ago of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 507 2,257 1,999 1,724 1,453 1,107 1,120 <$15,000 72 212 151 119 162 213 260 515,000-524,999 66 184 145 97 117 151 207 525,000-534,999 62 243 207 125 121 91 97 535,000-549,999 66 359 235 161 137 113 135 550,000-574,999 93 369 286 255 214 170 165 575,000-599,999 73 269 260 171 170 106 92 5100,000-5149,999 43 311 239 263 199 115 95 5150,000-5199,999 15 188 208 185 104 65 30 $200,000+ 16 123 270 350 229 83 39 Median HH Income $46,274 $56,853 572,237 $89,045 $71,180 $47,573 $34,479 Average HH Income $66,217 $85,453 5114,705 5138,591 $117,306 $80,690 $58,613 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 7S+ HH Income Base 100% 100% 100% 100% 100% 100% 1000/0 <515,000 14.2% 9.4% 7.6% 6.9% 11.1% 19.2% 23.2% 515,000424,999 13.0% 8.2% 7.3% 5.6% 8.1% 13.6% 18.5% 525,000-534,999 12.2% 10.8% 10.4% 7.3% 8.3% 8.2% 8.7% 535,000-349,999 13.0% 15.9% 11.8% 9.3% 9.4% 10.2% 12.1% 550,000474,999 18.3% 16.3% 14.3% 14.8% 14.7% 15.4% 14.7% 575,000-599,999 14.4% 11.9% 13.0% 9.9% 11.7% 9.6% 8.2% 5100,000-5149,999 8.5% 13.8°/a 12.0% 15.3% 13.7% 10.4% 8.5% $150,000-$199,999 3.0% 8.3% 10.4% 10.7% 7.2% 5.9% 2.7% 5200,000+ 3.2% 5.4% 13.5% 20.3% 15.8% 7.5% 3.5% Data Note:income Is reported for households as of Lily 1,202G and represents annual,ncome for the preceding year,expressed in 2019 dollars. Income i5 reported for households as of July I.2025 and represents annual income for the preceding year,expressed in 2024 dollars Source:J.S.Census Bureau,Census 2010 Summary 6le 1.Esn Forecasts for 2020 and 2025. November 05, 2020 Page 212 of 358 • of • esri Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esrt Ring: 3 mile radius 2020-2025 2020-2025 Summary 2020 2025 Change Annual Rate Population 62,063 64,057 1,994 0.63% Households 34,349 35,253 904 0.52% Median Age 42.6 43.7 1.1 0.51% Average Household Size 1.78 1.79 0.01 0.11 2020 2025 Households by Income Number Percent Number Percent Household 34,349 100% 35,253 100% <$15,000 4,319 12.6% 3,940 11.2% $15,000-$24,999 3,213 9.4% 2,998 8.5% 525,000-$34,999 2,992 8.7% 2,804 8.0% $35,000-$49,999 3,390 9.9% 3,241 9.2% $50,000-$74,999 4,781 13.9% 4,762 13.5°i° $75,000-$99,999 3,572 10.4% 3,818 10.8% $100,0001149,999 4,485 13.1% 4,959 14.1% $150,000-$199,999 2,622 7.6% 3,061 8.7% $200,000+ 4,976 14.5% 5,669 16.1% Median Household Income $65,138 $74,149 Average Household Income $110,255 $122,963 Per Capita Income $61,106 $67,754 Data Note:Income is reported for households as of July 1,2020 and represents annual income for the preceding year,expresseC in 2019 dollars Income is reported for households as of July 1,2025 and represents annual income for the preceding year,expressed in 2024 Collars Source:U.S.Census Bureau,Census 2010 Summary File 1.Esn Forecasts for 2020 and 2025. November 05, 2020 Page 213 of 358 • s;"",) esri Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 3 mile radius 2020 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 1,328 6,494 7,396 5,920 4,882 4,025 4,303 <515,000 228 655 597 407 587 718 1,127 515,000-524,999 177 519 557 306 401 512 740 525,000-534,999 177 701 676 399 378 320 342 535,000-549,999 182 868 756 416 383 381 405 550,000-574,999 242 990 1,004 793 589 551 612 375,000-599,999 131 878 914 517 465 346 319 5100,000-5149,999 110 971 951 962 628 483 379 5150,000-5199,999 36 516 779 601 358 209 124 $200,000+ 46 397 1,162 1,519 1,092 504 256 Median HH Income $40,643 $60,531 $77,296 $104,474 $79,527 $52,689 $32,971 Average HH Income $61,131 $86,085 ;120,059 $155,852 $136,803 $96,895 $64,708 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <515,000 17.2% 10.1% 8.1% 6.9% 12.0% 17.8% 26.2% 515,000-524,999 13.3% 8.0% 7.5% 5.2% 8.2% 12.7% 17.2% 525,000-534,999 13.3% 10.8% 9.1% 6.7% 7.7% 8.0% 7.9% 535,000-549,999 13.7% 13.4% 10.2% 7.0% 7.8% 9.5% 9.4% 550,000-$74,999 18.2% 15.2% 13.6% 13.4% 12.1% 13.7% 14.2% $75,000-$99,999 9.9% 13.5% 12.4% 8.7% 9.5% 8.6°/a 7.4% 5100,000-5149,999 8.3% 15.0% 12.9% 16.2% 12.9% 12.0% 8.8% 5150,000-5199,999 2.7% 7.9% 10.5% 10.2% 7.3% 5.2% 2.9% 5200,000+ 3.5% 6.1% 15.7% 25.7% 22.4% 12.5% 5.90% Data Note:Income is reported for households as of July 1,2020 and represents annual income for the preceding year,expressed in 2019 dollars. Income,s reported for households as of July 1, 2025 and represents annual mrome for the preceding year,expressed in 2024 dollars Source:U.S.Census Bureau,Census 2010 Summary File I.Esri Forecasts for 2020 and 2025. November 05, 2020 Page 214 of 358 • �� esri Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 3 mile radius 2025 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 754- HH 5+HH Income Base 1,524 6,272 7,033 6,162 5,157 4,327 4,779 <$15,000 230 510 476 360 514 702 1,148 $15,000-$24,999 186 427 447 275 380 512 770 $25,000-$34,999 179 607 585 375 377 319 363 $35,000-$49,999 206 790 661 396 377 384 428 $50,000-$74,999 298 948 904 746 595 592 680 $75,000-$99,999 162 888 911 560 516 392 388 $100,000-$149,999 152 1,069 941 1,051 704 556 486 $150,000-$199,999 55 594 833 702 458 257 163 $200,000+ 57 439 1,275 1,698 1,235 613 353 Median HH Income $46,443 $69,916 $85,472 $113,477 $89,815 $58,395 $38,077 Average HH Income $68,841 $97,346 $135,932 $170,619 $151,074 $109,091 $75,508 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% I00°/a 100% 100% 100% 1D0% 100% <$15,000 15.1% 8.1% 6.8% 5.8% 10.0% 16.2% 24.0% $1S,000-$24,999 12.2% 6.8% 6.4% 4.5% 7.4% 11.8°/a 16.1% $25,000-$34,999 11.7% 9.7% 8.3% 6.1% 7.3% 7.4% 7.6°/a $35,000-$49,999 13.5% 12.6% 9.4% 6.4% 7.3% 8.9% 9.004 $50,000-$74,999 19.6% 15.1% 12.9% 12.1% 11.5% 13.7% 14.2% $75,000-$99,999 10.6% 14.2% 13.0% 9.1% 10.0°!0 9.1% 8.1% $100,000-5149,999 10.0% 17.0% 13.4% 17.1% 13.7% 12.8% 10.2% $150,000-$199,999 3.6% 9.5% 11.8% 11.4% 8.9% 5.9% 3.40/a $200,000+ 3.7% 7.0% 18.1% 27.6% 23.9% 14.2% 7.4% Data Note:Incomes reported for households as of 2uly 1,2020 and represents annual Income for the oreced+ng year,expressed in 2019 dollars. Income's reported for households as of July 1,2025 and represents annual income for the preceding year,expressed in 2024 dollars Source:U.S.Census Bureau,Census 2011 summary F;le 1.Esri Forecasts for 2020 and 2025. November 05, 2020 Page 215 of 358 ') esrislb,.. Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 5 mile radius 2020-2025 2020-2025 Summary 2020 2025 Change Annual Rate Populaton 228,424 253,775 25,351 2.13% Households 115,079 127,870 12,791 2.13% Median Age 38.8 39.1 0.3 0.15% Average Household Size 1.94 1.95 0.01 0.10% 2020 2023 Households by Income Number Percent Number Percent Household 115,075 100% 127,866 100% <515,000 15,657 13.6% 15,239 11.9% 515,000-524,999 11,269 9.8% 11,291 8.8% 525,000-534,999 9,671 8.4% 9,821 7.7% 535,000-549,999 11,727 10.2% 12,046 9.4% $50,000-$74,999 18,429 16.0% 20,443 16.0% 575,000-599,999 13,254 11.5% 15,482 12.1% 5100,000-5149,999 14,502 12.6% 17,766 13.90/4 5150,000-5199,999 7,987 6.9% 10,337 8.1% $200,000+ 12,579 10.9% 15,441 12.1% Median Household Income 560,246 567,263 Average Household Income $96,452 $107,090 Per Capita Income $48,996 $54,323 Data Note:Income is reported for households as of July 1, 2020 and represents annul income for the preceding year,expressed in 2019 dollars. Income s reported for households as of July 1,2075 ai,d represents annual income for the preceding year,expressed in 2024 dollars Source:U.S Census 9ureau,Census 2010 Summary File 1.Esri Forecasts fc•2020 and 2025. November 05, 2020 Page 216 of 358 • �,� esri Household Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 5 mile radius 2020 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 5,919 25,898 25,136 19,551 16,225 12,220 10,067 <$15,000 1,073 2,528 2,190 1,836 2,603 2,552 2,874 $15,000-$24,999 675 1,968 1,938 1,214 1,625 1,901 1,948 $25,000-$34,999 699 2,377 2,031 1,419 1,338 1,030 777 $35,000-$49,999 785 3,076 2,567 1,585 1,451 1,304 958 $50,000-$74,999 1,251 4,453 3,917 3,155 2,467 1,802 1,383 $75,000-$99,999 647 3,895 3,426 1,941 1,601 998 746 $100,000-$149,999 488 4,155 3,186 3,047 1,809 1,127 689 5150,000-$199,999 173 1,864 2,560 1,697 964 505 224 $200,000+ 187 1,582 3,322 3,657 2,366 1,000 467 Median HH Income $44,333 $64,721 $74,340 $81,081 $58,946 $41,148 $27,250 Average HH Income $61,249 $86,738 $110,470 $127,886 $105,110 $76,496 $56,562 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 17.9% 9.8% 8.7% 9.4% 16.0% 20.9% 28.5% $15,000-$24,999 11.3% 7.60/0 7.7% 6.2% 10.0% 15.6% 19.4% $25,000434,999 11.7% 9.2% 8.1% 7.3% 8.2% 8.4% 7.7% $35,000449,999 13.1% 11.9% 10.2% 8.1% 8.9% 10.7% 9.50/0 150,000-$74,999 20.9% 17.2% 15.6% 16.1% 15.2% 14.7% 13.7% $75,000-499,999 10.8% 15.0% 13.6% 9.9% 9.9% 8.2% 7.40/0 $100,000-$149,999 8.2% 16.0% 12.7% 15.6% 11.1% 9.2% 6.8% $150,000-$199,999 2.9% 7.20/0 10.2°/o 8.7% 5.9% 4.1% 2.2% $200,000+ 3.1% 6.1% 13.2% 18.7% 14.6% 8.2% 4.60/0 Data Note:Income is reported for households as of July 1,2020 and represents annual income for the preceding year,expressed in 2019 dollars. Income is reported for households as of July 1,2025 and represents annual income for the preceding year,expressed in 2024 dollars Source:U.S.Census Bureau,Census 2010 Summary File 1.EV!Forecasts for 2020 and 2025. November 05, 2020 Page 217 of 358 • , ., esriHousehold Income Profile 100 21st St, Miami Beach, Florida, 33139 Prepared by Esri Ring: 5 mile radius 2025 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 7,692 28,055 26,464 21,573 17,819 14,176 12,087 <S15,000 1,181 2,192 1,939 1,697 2,363 2,638 3,228 $15,000-$24,999 773 1,791 1,739 1,152 1,576 2,051 2,210 525,000-$34,999 799 2,263 1,934 1,414 1,368 1,140 902 $35,000-$49,999 946 2,968 2,457 1,618 1,499 1,448 1,109 $50,000-$74,999 1,707 4,748 3,968 3,376 2,741 2,209 1,694 $75,000-$99,999 933 4,434 3,752 2,252 1,876 1,245 990 $100,000-$149,999 768 5,133 3,680 3,609 2,197 1,435 945 $150,000-$199,999 290 2,507 3,092 2,127 1,306 684 330 $200,000+ 294 2,019 3,902 4,327 2,892 1,326 680 Median HH Income $51,377 $75,267 $81,454 $90,589 $67,507 $47,533 $31,169 Average HH Income $70,554 $98,572 $122,801 $139,810 $118,526 $86,304 $64,833 Percent Distribution <25 2S-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 15.4% 7.8% 7.3% 7.9% 13.3% 18.6% 26.7% $15,000-$24,999 10.0% 6.4% 6.6% 5.3% 8.8% 14.5% 18.3% $25,000-$34,999 10.4% 8.1% 7.3% 6.60/. 7.7% 8.0% 7.5% $35,000-$49,999 12.3% 10.6% 9.3% 7.5% 8.4% 10.2% 9.2% $50,000-$74,999 22.2% 16.9% 15.0% 15.6% 15.4% 15.6% 14.0% $75,000-$99,999 12.1% 15.8% 14.2% 10.4% 10.5% 8.8% 8.2% $100,000-$149,999 10.0% 18.3% 13.9% 16.7% 12.3% 10.1% 7.8% $150,000-$199,999 3.8% 8.9% 11.7% 9.9% 7.3% 4.8% 2.7% $200,000+ 3.8% 7.2% 14.7% 20.1% 16.2% 9.4% 5.6% Data Note:Income is reported for households as of July 1.2020 and represents annual income for the preceding year,expressed in 2019 dollars. Income is reported for households as of July 1,2025 and represents annual income for the preceding year,expressed in 2024 dollars Source:U.S.Census Bureau,Census 2010 Summary File 1.San Forecasts for 2020 and 2025. November 05, 2020 Page 218 of 358 ADDENDA ENGAGEMENT LETTER WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 219 of 358 WALTER DUKE + PARTNERS September 22 2020 Via Email BHI Miami Limited Corp 1521 Alton Rd *403 Miami Beach FL 33139 Attn Mr Wayne Landing Re Project Plum the former Seagull Hotel located at 100 21v Street Miami Beach Miami-Dade County Florida Dear Mr Landing Thank you for requesting our proposal for valuation advisory services We are pleased to submit this proposal and our Terms and Cono t ons PROPOSAL SPECIFICATIONS Purpose: To estimate the market value of a proposed road vacation to the client s property Premise: The client •ecently purchased the property with the intention of renovating the property to a luxury hotel As part of the redevelopment process the client car purchase a porton of the adjoining public roadway 21"Street to enhance the parent property The City of Miami Beach has requested the client obtain a real appraisal of the land to be purchased based on its value to the client s property Rights Appraised: Fee simple Specific Intended Use: Acquisition of public owned land Scope of Appraisal: Walter Duke + Partners will undertake the necessary investigation and analysis needed to proffer a supportable defensible estimate of market value of the subject property as descrbed above Report Type: Appraisal Report A..raisal Standards: USPAP Expenses: Fee includes all associated expenses and costs during appraisal Post appraisal services are billed at hourly rate Payment Terms: Due upon completion of appraisal report Report Copies: Electronic PDF Delivery Schedule: Seventeen (17) Business Days from the start date or sooner if possible Start Date' The appraisal process will start upon receipt of your signed agreement and all the requested property specific data. 2Afi5'.7;i.aln 4raC 9n -wr_awe..yae c.r,..:d i'3 I 'u. r-n, - ,•.f`-t'c Page 220 of 358 BHI Marti Limited Corp Attn Mr Wayne Landing September 22,2020 Acceptance Date: These specifications are subject to modification if thus proposal ,s not accepted within 2 business days from the date of this letter The attached Terms and Conditions and Specific Property Data Request are deemed a part of this agreement as though set forth in full herein We appreciate this opportunity to be of service to you on this assignment If you have additional questions. please contact us Sincerely . WALTER DUKE+PARTNERS INC • 4)4 l Walter B Duke. III MAI CCIM State-Cerirhed General Real Estate Appraiser RL3'5 AGREED AND ACCEPTED 23 September 2020 Signature Date Mr Wayne Landing Director Name(Printed) Title 546 591 4602 wayne Ianding@bluehoraonadvisors.com Phone Number Email Address 2860 e.Slate Road 64 Sjrte la9 I rat •utlr•daic rionrta 333124864 I '954 587 2701 l 954 55:1/0. ( , •. .;,•r Page 221 of 358 [Ifll M 11111111111111ffifili - BHI Miami Limited Corp Attn Mr Wayne Landing September 22 2020 TERMS ANO CONDITIONS 1 These Terms and Conditions Detvreer Wane'Duke•Partners Inc ;Appraiser)and the Client for whom the referenced appraisal service will be performed shalt be deemed a part or such Agreement as though set forth in run therein The Agreemert shell be governed by the laws or the state of Florida 2 Client is Oftened as the party sprig lee Agreement aria shad be responsible for;eyelet"'of the hes stipulated in the Agreement Payment of the appraisal fee is not contingent upon any predetermined value or On an adeen or event resulting from the analyses coiner* conclusions or use Of the appraisal report 3 Fnal payment is due and payable upon delivery of the final report e It we are requested to attend additional meetings with staff public hearings or gave Court testimony an additional feq will De charged en an eatery bash al Our teen-prevailing hourly rate The floury fillings pe'ta.n to court preparation waling and travel time document review and preparation(excludes appraisal report!and all meetings related to cove testimony S In the evert Client requests additional seryces beyond the purpose slated in the Agreement Client agrees to pay an addrtional Charge for such services plus fernyursement of expenses whether or not the completed report has Dean del;vereo to Client al the time of the request 6. It`S understood that the Client has the right t0 careen Mrs assignment at any line prof to detNery ot the completed report In such event the Client is obligated only for the prorated share of tee fee based upon the wont completed and expenses incurred wan a rrsn'mum charge of$500 7 Additional copies of the appraisal reports are available at a cost of S'00 per original color copy and$50 oe'peolocepy ibtack and white! d!ua shrppng costs A In.he event Client fats to mace payments when due arse payable then?torn the date due and payable until paid the amount due and payable shall tear interest at lee maximum rate permdted in the State in tierce the office of Appraiser executing the Agreement rs located If Appraiser i5 regoired to insteute legal action against Client relating to the Agreement.Appraiser shall be entitled to recover'easonable attorney's fees and costs from Client 9 Apperse'assumes that there arc no mayor or significant items that would require Ire expertise of a professional building contractor or enginee' 1f such items need to be consideree in Appraisers studies such services are to be p'Ov.ded by others al a cost which•s riot a part of the fee proposal 10 In the ewe of any dispute between Client and Appraiser rdlabng to this Agreement or Appraisers or Chert s performance hereunder Appraiser and Client agree that Suet'dispute shall be resolved by means of binding arbitration:n accordance with the commercial arbitrator rules of the American Arb.tbation Association and,rdgment upon the award rendered by the arbitrator(3)may be entered in any Court Of competent runsdicton Depositions may to taken and other discovery obtained dcnng such arb:treton proceedings to the same extent as authorized in Civil Judicial proceedings in the stale where me o?'ce of Appraiser executing ties Agreement is located The arberetorrsl shall be Broiled to awarding compensatory damages and shall have no authority to award punitive exemplary or smear type damages. The prevailing party n the arb trahnn preceeding shall be pitted to recover from the losing party its expenses "chiding the costs of arbitration proceedirg and reasonaole attorneys fees IClient ackrowiedges!hal Appraiser is being retained hereunder as an independent contractor to perform the Sennces described nermr and nothing in thts Agreement shall be deemed to create any other relatlonseip between Client and Appraiser This assignment shall be deemed concluded and the services hereunder completed upon delivery to Client of the appraisal report diSCossed herein t2 All statements of fact in the report which are used as the bass of the Appraisers analyses op ones and Conclus'Gis will be true and correct to the best of the Appraisers Knowledge and belief The Appraiser may rat you the accuracy of information and molesl furnished to Appraiser by Client 13 Appraiser shall have no resocnsddity for legal matters queslions of surveyor tale soil or Subsoil conditions eeginea'ing or other similar technical matters The report wilt not Constitute a survey of the property analyzed 14 Client setali provide Appraiser wily such materials with respect to the Assignment as are requested by Appraiser and:n the possession or under the cditro:of Client. Client shall p.-ovide Appraiser wits suffcient access to the real property to be analyteu and hereby grants permission for entry unless discussed n advance to the contrary 'S.The data gathered in the cease of the Assignment(except data flrrehed by Client]and the report prepared pursuant to the Agreement are and will remain the property of Appraiser With respect In data p'ovided by Client Appraiser shall not e.olate the confidential nature of the appraiser tient relationship by irriproperty dactosing any confidential information hirnrshed to Appra•ser Notwithstanding the foregoing Appraiser s authorized by Client lc disclose as or any portion of the report and the related data to appropnate representatives of the Appraisal tristate'f such disclosures required to enable Appraiser to cornet),w;th the Bylaws and Regiitatons Of such institute as now or rnereafter M effect 16 Unless specifically noted;n the appraisal we vela not be taxing into consideration the possibility of the existence of asbestos PCB transformers or other toxic hazardous or contaminated substances andior underground storage tanks hazardous rnalenali or the cost of encapsulation or removal thereof Futper Appraiser understands that there rf no nrr31o,or significant deferred maintenance in the property which would require the expertise of a professional cost estimator rel contractor II sirch repai.s are needed the estimates are to De prepared by others arid are not a part of this fee proposal. 17 Owe shall rot indemnify Appraiser o•hold Appraiser harmless unless and only to the extent that the Client misrepresents dislOrts 2660 Ai Stale Road 84 I Fon_avdHuale PlOride 33:fd-4004 ; 154 55/[ i i 954 587 t7bi ; \ai � Page 222 of 358 BHI Miami Limited Corp Attn Mr Wayne Landing September 22 2020 or provides incomplete or.naecurate appraisal results to others which ads of the Client prox,matety result in damage to Appraiter Chert shah indemnify and hob Appraiser harmless from any claims expenses judgments o•other Items or costs arising as a result of the Client's failure or the failure of any of the Clients agents to provide a comptete copy of the appraisal report to any third party In the event of any litigation between the parties the prevailing party to Such litgation shaft be entitled to'ecover from the other reasonable attorney fees and costs 18 Please note that Appraisers consent to allow the appraisal report or portions of Inc report to become part of 0•be referenced.n sty offering or other materialintended for the review of others or to be submitted to others will be at Appraisers reasonable discretion and.if given will be on condition trial Appraiser will be provided with an Indemnification Agreement ardor Non-Reliance letter ,n a tam and content satisfactory to Appraiser by a party satisfactory to Appraiser Appraiser does vonsent to Client submission of the complete final report to rating agencies loan participants or your auditors without the need to prop de us watt an Indemnification Agreement andror Nor-Reliance letter t9 waiter Duke•Partners Inc shall have n0 obigati0n lability M accountab lity to any thud party Any party who 4 not the Client or intended user identified on the face of the appraisal or in the engagement letter is nOt entitled to rely upon the contents of the appraisal without express written consent of Waiter Duke•Partners.Inc Client shall not include partners affiliates or relatives of the party named in the engagement letter SPECIFIC PROPERTY DATA REQUEST • Surveys For hotel property For road to be acquired For overall property after acquisition • Financial summary of recent acquisition • Summary of redevelopment inclusive of the additional property to be acquired • Preliminary protect cost and financial projections • Proposed site plan floor plans and building elevations • Any other information you deem relevant or would like us to consider 2840 w Slate Road 54 Scare 109 I fon:aoderitate•Honda 333124804 I t 954 587 270 r I r 554 Se7.2/02 t -•'- Vi •. ..,. Sits,,-/v . Page 223 of 358 ADDENDA QUALIFICATIONS WALTER DUKE+PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 224 of 358 WALTER DUKE + PARTNERS COMMERCIAL REAL ESTATE VALUATION 1',ilter K.Duke.U I.MAI.CCM Slate CertifrcdCcri(rcl!4pproi.a' QUALIFICATIONS OF WALTER B. DUKE, III, MAI, CCIM ., ' k EDUCATION University of Florida,Gainesville,Ronda Major in Real Estate Wolter 8.Duke,III,MAI,CCIM B.S. Degree in Business Administration Appraisal Institute, American Institute of Real Estate Appraisers and Society of Real Estate Appraisers core course, electives seminars and comprehensive examination. APPRAISAL/REAL ESTATE EXPERIENCE 1992—Present President&CEO,Walter Duke+Partners,Inc. 1988—1992 Senior Appraiser,Clobus Valuation Co , Inc. 1985—1987 Staff Appraiser,Clobus Valuation Co., Inc. 1983—1984 Broker-Salesperson,Carmel Bay Realty Appraisal assignments include the valuation and/or evaluation of a wide variety of commercial, residential and industrial properties in Florida prepared for banks, savings and loans,savings bank, insurance companies,estates,governmental agencies, REIT's, mortgage bankers, attorneys and individual investors. Property types include, but are not limited to, proposed and existing office buildings, commercial condominiums, warehouse and industrial properties, shopping centers and retail development,market and tax credit apartments,acreage tracts, commercial/industrial land and special purpose properties including marinas,boatyards,religious and/or educational facilities,fixed base operations(FBO). Qualified Real Estate Valuation Expert Witness: U.S. Bankruptcy Court, Southern District of Florida 17th Judicial Circuit Court, Broward County PROFESSIONAL AND BUSINESS AFFILIATIONS MAI, Member,Appraisal Institute, No.8584 CCIM, Certified Commercial Investment Member No. 7130 Registered Real Estate Broker-Salesperson—State of Florida, No. 0398146 Certified General Appraiser—State of Florida, No. RZ375 Former Member, Review and Counseling Division—Region X South Florida-Caribbean Chapter of Appraisal Institute: President 2000,2nd Vice President 1999: Secretary 1998,Treasurer 1997 Regional Representative Region X Leadership Fort Lauderdale—Class IV, 1998 Appraisal Institute, Leadership Advisory Council, 1997 Institute Affiliate Member, Realtor Association of Greater Fort Lauderdale Former Member,Appraisal Journal Editorial Review Board Member, Society of Commercial Realtors of Greeter Fort Lauderdale Member,Executives'Association of Fort Lauderdale Member.Marine Industries Association of South Florida(MIASF) Director,Marine Industries Association of South Florida(2014-2020) Director,CCIM Fort Lauderdale/Broward District (2018—Current) Member, Broward Workshop Page 225 of 358 CIVIC AND CHARITABLE ACTIVITIES Mayor City of Dania Beach, 2012-2014 City Commissioner. City of Dana Beach 2009—2011, 2015-2016 Chairman, Dania Beach Community Redevelopment Agency 2012-2014 Member, Broward Metropolitan Planning Organization 2012-2016 Leadership Fort Lauderdale—Class IV, 1998 AWARDS AND RECOGNITION Appraisal Institute—Recipient of the Volunteer of Distinction Award Jubilee Center of South Broward — Recipient of the Compassion Award Golden Anchor Award Recipient- Highest honor bestowed by the Marine Industnes of South Flonda (MIASF) Dania Lions Club-Recipient of the Nicholas James Costello Award for service to the community Gold Coast Magazine Fort Lauderdale-named as a 2016 Power Couple along with wife Lisa Symphony of the Americas, honored along with wife Lisa as a couple of "Style and Substance" South Florida Business Journal - One of five notable figures who are 'Making Waves in the Marine Industry" RECENT SPEAKING ENGAGEMENTS Keynote-Commercial Real Estate Trends"-Berger Commercial Realty Lunch N Learn Senes Keynote-Florida Commercial Real Estate Market"-South Florida Loan Committee Keynote-Market Update—South Florida Commercial Real Estate South Florida Chapter of the American Society of Appraisers(ASA) Keynote-Commercial Real Estate and Dana Beach Development Overview' -Broward Council of the Miami Association of Realtors Panelist-Market Perspectives on Valuation, National Association of Office and Industrial Properties(NAIOP) Speaker-South Florida Commercial Real Estate Financing and Valuation"South Flonda CCIM Chapter Panelist-MIASF Better Business Ser es"—Marine Industries of South Florida(MIASF) Speaker-2040 Regional Transportation Plan Rollout-Southeast Florida Transportation Council Keynote-Global Real Estate Trends Applicable to Fort Lauderdale—Fort Lauderdale Historical Society Spea4er—Broward County Economy-Executives Association of Fort Lauderdale 59"'Annual Economic Outlook Breakfast RECENT PUBLISHED ARTICLES AND INDUSTRY CONTENT Author- Top 5 Misconceptions About Commercial Real Estate Appraisals Author—Dredging of the Dania Cut Off Canal Spurs Economic Growth Author— What Type of Commercial Lease is Best for You? Author— How Walkable Communities Increase Property Values Author— Selling Your Marina?5 Key Factors to Consider Author— Millennia's Finally Leaving the Nest—Fort Lauderdale Rental Market Booming Author— The Importance of LIHTC Market Feasibility Studies Author— When is the right time to sell a marina?'—Boating Industry Magazine—August 13. 2015 Author— Business is Booming at Walter Duke+Partners Author— Top 10 Takeaways from this year's ICSC Conference Co-Author—Big Profits/Low Risk 7 Bank Lease Deal Trends Author— Top 5 Misperceptions About Commercial Real Estate Appraisals Author— All you need to Know about Florida Charter Schools Author— Top 4 Reasons Why Baby Boomers Still Own the Share of US Small Businesses Author— Three Reasons to be Happy in Your Upside Down Condo' 2860 W State goad 84.Suite 109 I Fort Lauderdale,Florida 33312-4804 I T 954.587.2701 I F 954.587.2702 I c„r. Since/975 Page 226 of 358 Author—Three Troubling Trends in the South Florida Condo Market" Author—Free Beer Included in Your Office Space? Guest Columnist/South Florida Business Journal—Ask these questions before running for office, 2015 Author—Low Income Housing Tax Credit A Government Program That Works Contributor-Time to Sell Your Marina?—Trade Only Today Magazine—December, 2015 Issue Author— Boom Interrupted.Six Signs Commercial Real Estate Could Be Peaking Author— Thinking Outside the Box to Create Value in Church Property Author— From the Desk of Duke. SHIP and SAIL Big Winners'. Columnist/MIASF Fort Lauderdale.must be vigilant to maintain its title as Yachting Capital of the World Author-Is the Condo Market Keeping You Up at Night? Author-Top Three Reasons For An Improved Housing Market? Author-Sea Level Rise: Does the Business Community Care? Author—The Amencan Dream Interrupted. 3 Ways Government Can Help Author—Nine Noteworthy Trends You Should Krfow Author—Its Gut Check Time in the Miami Condo Market Author—Six Headwinds That Could Derail Florida Commercial Real Estate and the Trump Economy Author—Opportunity is Knocking! Are you Ready? Author—Florida has Hurricane Amnesia Author—Is Fort Lauderdale Still the"Yachting Capital of the World? Author—COVID-19; Flonda CRE Winners and Losers Author—Office You Can't Live with It,You Can't Live Without It Author—CRE Valuation Professionals Shouldn't Overreact to COVID-19 RECERTIFICATION AND CONTINUING EDUCATION The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAIs and SRAs who meet the minimum standards of this program are awarded periodic education certification. I am currently certified under this program. 2860 W State Road 84.Suite 109 I Fort Lauderdale Florida 33312-4804 I T 954 587.2701 I F 954.587.2702 ( www WalterDuke.corn Since 1975 Page 227 of 358 WALTER DUKE + PARTNERS COMMERCIAL REAL ESTATE VALUATION Walter B.Duke.ii1.MAI,CCIM State t trtij;ciGcocra1.lppraiscr:'s QUALIFICATIONS OF ANDREW S. ROLF, MAI EDUCATION Florida Atlantic University, Boca Raton, Florida Master of Business Administration (MBA)--2010 Florida State University, Tallahassee, Florida Bachelor of Science Degree-2003 Major-Real Estate and Finance REAL ESTATE APPRAISAL EDUCATION Appraisal Institute: Basic Income Capitalization-October 2004 Course 510 Advanced Income Capitalization-September 2008 Course 520 Market Analysis& Highest and Best Use-December 2009 Course 530 Advanced Sales Comparison &Coast Approaches-July 2010 Course 550 Advanced Applications-October 2009 General Appraiser Report Writing &Case Studies-October 2010 Separating Real Property, Personal Property& Intangible Assets-June 2012 APPRAISAL/REAL ESTATE EXPERIENCE 2007- Present Senior Appraiser, Walter Duke + Partners, Inc., f/k/a, Clobus, McLemore & Duke, Inc. 2003-2007 Trainee Appraiser, Clobus, McLemore& Duke, Inc. Appraisal assignments include the valuation and/or evaluation of a wide variety of commercial properties in Florida prepared for banks, savings and loans, insurance compar ies, estates, governmental agencies, REITs, mortgage bankers and individual investors. Property types include, but are not limited to, proposed and existing shopping centers, office buildings, warehouses and industrial properties, rental apartment projects, acreage tracts, commercial/industrial land, mixed-use properties, self-storage facilities and senior housing facilities. PROFESSIONAL AFFILIATIONS MAI -Member, Appraisal Institute, No. 456819 State-Certified General Appraiser-State of Florida No. RZ3092 Real Estate Salesperson-State of Florida No. SL-3210795 RECERTIFICATION AND CONTINUING EDUCATION The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAls who meet the minimum standards of this program are awarded periodic education certification. I am currently certified under this program. 2860 W State Road 84 Suite 109 Fort Lauderdale Ronda 33312-4804 T 954 587 2701 i F 954.587 2702 sin was Page f228 of 358 ADDENDA LICENSES 0 rr'r yr.R iOatMry .>.0 RON MAC,IM SUSS.wn dbpr STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA WI.ESTATE APPRAISAL BD 7,E CERTIFIED CANER"ADPRAlgf MERE IMIScalm F D UNDER THF PROVISO'S CF CHAPTER 475,F LORIOA pT AT TES DUKE,WALTER BRYAN IV 25E0 ASTATE RD 6+STE 3O$ FT LAUDERDALE t EXPIRATIORO 20120111.111011 50.2020 Rawly,ovoy Want,C. ,1 myFwrw.l tlna corn ,,,M ...ct M Du,e,14 1b.11:,,4...,et.d n a•n Lr.. ' Y o —n Knr tACiy.11 is tetDettut l(e anyone 6Ntt Man l,t iice.00e to use this rlocumenl. U -J, S 1 :; . pr f p STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REALE TATE APPRAISAL BD THE CERTIFIEDGENERAtAPPRAISER,IF RFt$ESDERTIFIEDUNDER THE PROVISIONS d CI IAPTLR 47'.I,O(A,A SIA WTLS .. SCOTT— . SW It yY • f 1ii(MJ RS]A402 EXPIRATION DATE NOVFMDER 90,2022 Amos tr ef.nss at.,,.a:Myrtl..fal:w.w tan • C C . '<® i->T+Y f Done,,*Re.Vet documeo4 in any tot- S:�.:A. L?r--' Tnn h yhr ltrnit It if ,uetki Ise wyone abet Pun Mc heenMe to use 1h.,4-,., WALTER DUKE +PARTNERS COMMERCIAL REAL ESTATE VALUATION Page 229 of 358 WALTER DUKE + PARTNERS COMMERCIAL REAL ESTATE VALUATION BANKS!LENDERS The Pnvate Bark CORPORATE!COMPANIES Volunteers of America Amennational TAA Bark Aeiion Enterorses Watchtower Bible and Tract Society of New Amarillo National Bank Total Bank Avisor Young Bank Leumi Tndst BBX Capital LIFE COMPANIES Bank of America,NA U.S Bank Bradford Marine AEGON USA Realty Advisors Bank of Florida U S Century Bank Bnghtine Aetna Life Insurance Bank OZK United National Bank Budget Rent-A-Car Corporation A state Life Insurance Company Bank United.F.S.B. Valley National Bank Dereddor Shipyards Berkshire Life Insurance Co. Banesto USA Wells Fargo Bank Foundry Commercial Genworth Financial BBVA/Compass Bark Zeigler Capital Markets Fox Rock Great American Life Insurance Co Capra!Bark Holman Automotive Guardian Life insurance Capital One Banc DEVELOPERS!INVESTORS Huizerga Hold.ngs ING Life Insurance Catholic Order of Foresters Men Morris Commercial Real Estate Lago Mar Beach Resort&Club Jahn Hancock Mutual Life Centerstate Bank Alliance Companies Lowes +a-e Centers Life of Georgia Insurance Co. CIBC Wold Markets Alta Development Miami Dolphins Lincoln National Life Ins Co. Citibank,F.S.B. Altman Companies Pantropic Power Met Life Mortgage Citizens Bank American Land Company Rosdoli Yachting Center Mutual life Insurance Co. City National Bank Atlantic Pacific Compares Seminole Indian Tribe of Florida Nationwide Life Insurance CLI Capital Bachow Ventures Tampa Electric(TECO) New York Life CNL Bank Bergeron Development Unfomi Advantage New England Mutual Life Coconut Grove Bank Blue Water Developers Westrec Mamas Northwestern Mutual Lee Comerica Brandon Companies WS Development Principal Real Estate Investors Commerce Bank,N.A. Bridge Development Yacht Management Group Provident Mutual Credit Suisse Centerline Homes Prudential Insurance Corporation Eastern Savings Bank Charter Schools USA GOVERNMENT I MUNICIPAL State Farm Lie Insurance ECCU Colliers international S Florida Broward County Housing Authority Thrivent Financial for Lu"nerans Fidelity Bark of Florida Cornerstone Group Broward County Property Appraiser TransAmerica Life Fifth Third Bank Cymbal Development Broward County,Florida First American Bank DruryDevelopment Corporation Broward Health LAW FIRMS Fast Horizon Bank Easton&Associates Broward Regional Healttn Panning Council Akemnan LLP First Housing Eden Multifamily City of Boca Raton Amstein&Lehr LLP First Republic Bank EJS Capita Partners City of Coral Springs Berger Singerman LLP Florida Shores Barr El Ad National Properties City of Coral Gables Buchanan Ingersoll&Rooney PC First'United Bank Flagler/Colina Development City of=at Lauderdale Cooney Trybus Kwavnidc Teets Fagler Bank Florida Crystals City of'Hallandale Beach DJnay,Miskel&Backman Fladan Community Bank Fianda East Coast Industries City of'moth/wood Frank Weinberg&Black,PL GE Capital Fort Partners City of Homestead Greenberg Traung Gibraltar Private Bank&Trust Foundry Commercial City of Oakland Part Hackeknan.Olive&Judd Grand Balk and Trust of Florida Gatlin Development Company City of Miramar L ochrie&Chakas,PA Heartland Bank Getting Group City of Oakland Park Mastiana&Christiansen,PA Housing Trust Group Graham Commies City of Sunny Isles Beach Moskowitz,Mandell,Salim&Simowitz HSBC Bank USA Groupe Pacific City of Sunrise Nexterra Law Hudson Valley Banc Ireland Companies City of Witton Manors Rice Pugatcn Robinson Storfer & Cohen Iberia Bank Hix Snedeicer Fat Lauderdale DDA Saavedra Goodwin International Finance Bank Hooper Constriction Flonda Housing Finance Corp. Shuts,LLP Ironstone Bank Jeff Greene Partners Hous rg Authority City of Ft Laud Tipp Scott Key Bank.N A L noon Property Company Marr;Parking Authority Write&Case,'_LP Landmark Bank McCourt Development Mari-Dade Housing Authority Legacy Bank of Florida Mi Creek Residential Trust Palm Beacn Housing Authority MORTGAGE!WALL STREET Mack RE Strategies Won&Associates P recrest School Tctrran Z" Marquis Bank M R.MCTgue&Co School Board of Broward County AGM Finanoal Mercantile Bank told(Partners Town of Miami Lakes ASB Capital Management,Inc Mutual of Omaha Bank Net Real Estate Fund Town of Southwest Ranches Aztec Group Northern Trust Bank of Florida New Urban Development United States Department of Justice Berkade Ocean Bank Olen Properties Berkshire Mortgage Finance OptimumBank Pebb Capital INSTITUTIONAL 1 NON-PROFIT Chrysler Credit Corporation Pacific National Bank Phar Multifamily Aids Healthcare Foundation Dockery Romer&Company PNC Bank Plaza Equity Partners American Maritime Officers(AMO) Florida Bond&Mortgage Popular Community Bank Premier Developers Archdioceses of Miami Gross Mortgage Finance Professional Bank RAM Real Estate Development Boca Raton Community Hospital Guggenheim Phar Multifamily RBC Bank Raza Development Bonnet House Museum&Gardens Holliday Fenoglio Fowler.LP Regions Bark Red Apple Development CSO of Broward County InterBay Funding Sabadell United Bank Related Group Dan Marino Foundation Mercury Capital Corporation Safra National Bank of New York Richman Capital I Fest Housing Corporation Merril Lynch Cap ai Seacoast Bank Rilea Group Florida Inland Navigation District Midland Funding Seltzer Management Group Ross Realty Investments Habitat for Humanity Morgan Stanley Mortgage Capital Stonegate Bank Segbro Companies Holy Cross Hospital Northmarq Capital Sun State Bank Stiles Corporation Memorial Healthcare Systems Thomas D Wood&Company Surety Bank Taplin Companies Nova Southeastern University Walker&Dunlop Synovus Trnsrc Residential Group Salvation Army Textron Frandal Woolbnght Development South Broward Hospital District TO Bank ZOM Companies Urban League Page 230 of 358 Page 231 of 358 CBRE VALUATION 8 ADVISORY SERVICES s 4adirr 1/4 APPRAISA ,4. REPORT 414, 1111 SOUTH HALF OF T STREET 100 21ST STREW T: m, MIAMI BEACH , FLORIDA 31 . 39 'Ai- { CBRE FILE NO . 20 - 341 SE - 9460 - 1 CLIENT : CITY OF MIAMI BEACH , PUBLIC WORKS DEPARTMENT CBRE Page 232 of" ' VALUATION &ADVISORY SERVICES CBRE 777 Brickell Ave. Ste. 1 100 Miami,FL 33131 T (305) 381-6472 www.cbre.com Date of Report: January 13, 2021 Mr. Roy Coley, MBA Director CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 RE: Appraisal of: South Half of 21st Street 100 21st Street Miami Beach, Miami-Dade County, Florida CBRE, Inc. File No. 20-341SE-9460-1 Dear Mr. Coley: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 0.15-acre (6,736 sq. ft.) paved & improved public right-of-way located at 100 21st Street in Miami Beach, Florida. The abutting property owner/developer of the Seagull Hotel, BHI Miami, Ltd., is interested in purchasing the subject right-of-way, i.e. the south 1/2 of 21' Street for the full length of the Seagull Hotel site, from the City of Miami Beach in order to increase the zoning density necessary to renovate & expand the Seagull Hotel. In turn, BHI Miami, Ltd. would provide the public with a perpetual roadway and pedestrian access easement and other public benefits to be negotiated with the City. Because there are limited "arm's length" comparable sales of linear strips within public rights-of- way necessary for a reasonable & supportable valuation process, we have applied the "across the fence" (ATF) valuation methodology. In theory, ATF is applicable when undevelopable sites with limited marketability can be joined to an adjacent parcel and can legally assume the adjacent parcel's highest & best use and unit value. With regards to the subject site, we have employed the ATF methodology and considered the additional 2.0 FAR "as of right" zoning density and benefit to the abutting owner/developer of the Seagull Hotel property, which has an RM-3, Residential Multifamily, High Intensity zoning designation. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: Page 233 of 358 Mr. Roy Coley, MBA January 13, 2021 Page 2 MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion Land Value Fee Simple Estate January 10, 2021 $7,400,000 Compiled by CBRE The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES I4' o\ps4 Stuart J. Lieberman, MAI James E. Agner, MAI, AI-GRS, SGA, MRICS Vice President Senior Managing Director— Cert Gen RZ1074 Florida/Caribbean Cert Gen RZ382 www.cbre.com/stuart.lieberman www.cbre.com/james.agner Phone: (305) 381-6472 Phone: (305) 381-6480 Email: Email: CBRE Page 234 of 358 Certification Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida. 7. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Stuart J. Lieberman, MAI and James E. Agner, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 10.Stuart J. Lieberman, MAI has and James E. Agner, MAI has not made a personal inspection of the property that is the subject of this report. 1 1 . No one provided significant real property appraisal assistance to the persons signing this report. 12.Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 13.Stuart J. Lieberman, MAI and James E. Agner, MAI have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding agreement to perform this assignment. f Stuart J. Lieberman, MAI James E. Agner, MAI, AI-GRS, SGA, MRICS Cert Gen RZ1074 Cert Gen RZ382 CBRE South Half of 21st Street, Miami Beach, Florida Page 235 of 358 Subject Photographs Subject Photographs 100 21st Street Right-of-Way '+ ►, e Maw,Bea �L 33'3° a •` .• 6 _ .." "Iik1/4 ,..., . ,iir 1 •*% '..;•". .4r4; r. ' `l... - ,,. tit' 44,,f, iikr„ • ..,. .., , • /44';'',,,P . — /.4i. ,,,,, ,- t { i:' ; • Iornspa :• R Lm •�: Ett ►. m 's 6.40501111110t - Goo le Earth *�•�~ :: W •;�`M* ?: Aerial View ii CBR E South Half of 21st Street, Miami Beach, Florida Page 236 of 358 Subject Photographs f i / -, AI�'�', seas roil! - 1 1 'iii _,. - Ici: _ A v_ . i . ) .. , , s . 1 - , ..‘"Ni _ , Ir . '� _ 74 . • ,p-, ---`_.-sem" ! tt, - Ate• I `. 4k,`i�i.. X . • Photo 1 - 215' Street Lookin. East Photo 2 - Lookin. West from Beach MAI IIIP;di :p. _ J r I *' 1 ,� _ Photo 3 - Lookin. SW from Beach Walk Photo 4 - 21'' Street Lookin. West 'll CBRE South Half of 21st Street, Miami Beach, Florida Page 237 of 358 Executive Summary Executive Summary Property Name South Half of 21st Street Location 100 21st Street Miami Beach,Miami-Dade County, FL 33139 Parcel Number(s) 02-3226-001-0040 Client CITY OF MIAMI BEACH,PUBLIC WORKS DEPARTMENT Highest and Best Use As If Vacant High density, mixed-use residential, resort hotel&retail uses As Improved Existing public right-of-way Property Rights Appraised Fee Simple Estate Date of Inspection January 10,2021 Estimated Exposure Time 3 -9 Months Estimated Marketing Time 3 -9 Months Primary Land Area 0.15 AC 6,736 SF Zoning RM-3,Residential Multifamily,High Intensity Buyer Profile Developer VALUATION Total Per SF Market Value As Is On January 10,2021 Cost Approach Not Applicable Sales Comparison Approach $7,400,000 $1,098.53 Income Capitalization Approach Not Applicable CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Date of Value Value Land Value Fee Simple Estate January 10,2021 $7,400,000 Compiled by CBRE IMPORTANT WARNING - MATERIAL VALUATION UNCERTAINTY FROM CORONAVIRUS The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a "Global Pandemic" on the 11th March 2020, has impacted many aspects of daily life and the global economy - with some real estate markets experiencing significantly lower levels of transactional activity and liquidity. As of the valuation date, in the case of the subject property, there is a shortage of market evidence for comparison purposes, to inform opinions of value. Our valuation of the property is therefore reported as being subject to 'material valuation uncertainty'. Consequently, less certainty and a higher degree of caution - should be attached to our valuation than would normally be the case. For the avoidance of doubt, the inclusion of the 'material valuation uncertainty' declaration above does not mean that the valuation cannot be relied upon. Rather, the declaration has been included to ensure transparency of the fact that - in the current extraordinary circumstances - less certainty CBRESouth Half of 21st Street, Miami Beach, Florida Page 238 of 358 Executive Summary can be attached to the valuation than would otherwise be the case. The material uncertainty clause is to serve as a precaution and does not invalidate the valuation. Values may change more rapidly and significantly than during standard market conditions. Given the unknown future impact that COVID-19 might have on the real estate market and the difficulty in differentiating between short term impacts and long-term structural changes, we recommend that you keep the valuation(s) contained within this report under frequent review. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities • The subject property is part of a high density, barrier island & resort community. • The subject location abuts a proposed hotel renovation & expansion property, a municipal parking lot and a beach walk that connects directly to the Atlantic Ocean. • Historically low interest rates and unprecedented government stimulus in the wake of the Covid-1 9 pandemic. • The State of Florida and the Miami-Dade County market have entered Phase 3 of the re- opening in the wake of Covid-19. Weaknesses/ Threats • None EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as "an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." • None noted HYPOTHETICAL CONDITIONS A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis." 2 • None noted OWNERSHIP AND PROPERTY HISTORY Title to the subject property is vested to the City of Miami Beach, a municipal government. CBRE is unaware of any arm's length ownership transfers of the property within three-to-five years of the date of appraisal. Further, the property is not reportedly being offered for sale as of the current date. 1 The Appraisal Foundation, USPAP, 2020-2021 2 The Appraisal Foundation, USPAP, 2020-2021 CBRESouth Half of 21st Street, Miami Beach, Florida Page 239 of 358 Executive Summary However, as previously noted, the abutting property owner/developer of the Seagull Hotel, BHI Miami, Ltd., is interested in purchasing the subject right-of-way, i.e. the south 1/2 of 21st Street for the full length of the Seagull Hotel site, from the City of Miami Beach in order to increase the zoning density necessary to renovate & expand the Seagull Hotel. In turn, BHI Miami, Ltd. would provide the public with a perpetual roadway and pedestrian access easement and other public benefits to be negotiated with the City. According to public information and recent media, the Seagull Hotel was developed in 1950 and designed by Albert Anis. The existing building currently has 178 hotel rooms which will be transformed into 100 hotel rooms. The redevelopment will include enlarging the rooms, a new pool, spa, fitness center and restaurant led by Chef Niko Romito. The proposed restoration will be overseen by Antonio Citterio Patricia Viel. The current owner of the Seagull Hotel is the Blue Horizon Group who acquired the property from Lionheart Capital and Actium Development Co. for $120 million in January 2020. The sellers had previously acquired the leased fee interest in the 1.34-acre site at auction for $31 .1 million in December 2017 and the leasehold improvements in January 2018 for $20,741,900 out of bankruptcy proceedings. EXPOSURE/MARKETING TIME Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following: • exposure periods for comparable sales used in this appraisal; • exposure/marketing time information from the PwC Real Estate Investor Survey; and • the opinions of market participants. The following table presents the information derived from these sources. CBR E South Half of 21st Street, Miami Beach, Florida Page 240 of 358 Executive Summary EXPOSURE/MARKETING TIME DATA Exposure/Mktg. (Months) Investment Type Range Average Comparable Sales Data 0.0 - 9.0 4.5 PwC National Investor Survey National Development Land Market 3.0 - 12.0 7.5 Local Market Professionals 1.0 - 9.0 5.0 CBRE Exposure Time Estimate 3 - 9 Months CBRE Marketing Period Estimate 3 - 9 Months Various Sources Compiled by CBRE vii CBRE South Half of 21st Street, Miami Beach, Florida Page 241 of 358 Table of Contents Table of Contents Certification Subject Photographs Executive Summary iv Table of Contents viii Scope of Work Area Analysis 6 Neighborhood Analysis 16 Site Analysis 28 Zoning 33 Tax and Assessment Data 37 Highest and Best Use 42 Land Value 43 Assumptions and Limiting Conditions 50 ADDENDA Land Sale Data Sheets Legal Description Client Contract Information Qualifications v''` CBRE South Half of 21st Street, Miami Beach, Florida Page 242 of 358 Scope of Work Scope of Work This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered, and analysis is applied. INTENDED USE OF REPORT This appraisal is to be used by the client for internal decision making and negotiations with a potential buyer/developer and no other use is permitted. CLIENT The client is CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT. INTENDED USER OF REPORT This appraisal is to be used by CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT. No other user(s) may rely on our report unless as specifically indicated in this report. Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser's responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 3 PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the subject property. DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 3 Appraisal Institute, The Appraisal of Real Estate, 14'h ed. (Chicago:Appraisal Institute, 2013), 50. CBRESouth Half of 21st Street, Miami Beach, Florida Page 243 of 358 Scope of Work 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. INTEREST APPRAISED The value estimated represents Fee Simple Estate as defined below: Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. S Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor's records • legal description Extent to Which the Property is Inspected The extent of the inspection included the following: on-site, site perimeter and surrounding environs. Type and Extent of the Data Researched CBRE reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • comparable sale & listing data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. For vacant land, the sales comparison approach has been employed for this assignment. 4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472. 5 Appraisal Institute,The Dictionary of Real Estate Appraisal, 6' ed. (Chicago:Appraisal Institute, 2015), 90. 2CBRESouth Half of 21st Street, Miami Beach, Florida Page 244 of 358 Scope of Work Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Size Legal description and sketch of description Improved Data Building Area "As of right"zoning No. Bldgs. Not applicable Parking Spaces Not applicable Year Built/Developed Not applicable Economic Data Deferred Maintenance: Not applicable Building Costs: Not applicable Income Data: Not applicable Expense Data: Not applicable Other Vacation Request Client Applicant's Appraisal Client Compiled by CBRE APPRAISAL METHODOLOGY In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Depending on a specific appraisal assignment, any of the following four methods may be used to determine the market value of the fee simple interest of land: • Sales Comparison Approach; • Income Capitalization Procedures; • Allocation; and • Extraction. The following summaries of each method are paraphrased from the text. The first is the sales comparison approach. This is a process of analyzing sales of similar, recently sold parcels in order to derive an indicatior. of the most probable sales price (or value) of the property being appraised. The reliability of this approach is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data regarding size, price, terms of sale, etc., (c) the degree of comparability or extent of adjustment necessary for differences between the subject and the comparables, and (d) the absence of nontypical conditions affecting the sales price. This is the primary and most reliable method used to value land (if adequate data exists). The income capitalization procedures include three methods: land residual technique, ground rent capitalization, and Subdivision Development Analysis. A discussion of each of these three techniques is presented in the following paragraphs. 3CBRE South Half of 21st Street, Miami Beach, Florida Page 245 of 358 Scope of Work The land residual method may be used to estimate land value when sales data on similar parcels of vacant land are lacking. This technique is based on the principle of balance and the related concept of contribution, which are concerned with equilibrium among the agents of production--i.e. labor, capital, coordination, and land. The land residual technique can be used to estimate land value when: 1) building value is known or can be accurately estimated, 2) stabilized, annual net operating income to the property is known or estimable, and 3) both building and land capitalization rates can be extracted from the market. Building value can be estimated for new or proposed buildings that represent the highest and best use of the property and have not yet incurred physical deterioration or functional obsolescence. The subdivision development method is used to value land when subdivision and development represent the highest and best use of the appraised parcel. In this method, an appraiser determines the number and size of lots that can be created from the appraised land physically, legally, and economically. The value of the underlying land is then estimated through a discounted cash flow analysis with revenues based on the achievable sale price of the finished product and expenses based on all costs required to complete and sell the finished product. The ground rent capitalization procedure is predicated upon the assumption that ground rents can be capitalized at an appropriate rate to indicate the market value of a site. Ground rent is paid for the right to use and occupy the land according to the terms of the ground lease; it corresponds to the value of the landowner's interest in the land. Market-derived capitalization rates are used to convert ground rent into market value. This procedure is useful when an analysis of comparable sales of leased land indicates a range of rents and reasonable support for capitalization rates can be obtained. The allocation method is typically used when sales are so rare that the value cannot be estimated by direct comparison. This method is based on the principle of balance and the related concept of contribution, which affirm that there is a normal or typical ratio of land value to property value for specific categories of real estate in specific locations. This ratio is generally more reliable when the subject property includes relatively new improvements. The allocation method does not produce conclusive value indications, but it can be used to establish land value when the number of vacant land sales is inadequate. The extraction method is a variant of the allocation method in which land value is extracted from the sale price of an improved property by deducting the contribution of the improvements, which is estimated from their depreciated costs. The remaining value represents the value of the land. Value indications derived in this way are generally unpersuasive because the assessment ratios may be unreliable and the extraction method does not reflect market considerations. Because there are limited "arm's length" comparable sales of linear strips within public rights-of- way necessary for a reasonable & supportable valuation process, we have applied the "across the fence" (ATF) valuation methodology. In theory, ATF is applicable when undevelopable sites with limited marketability can be joined to an adjacent parcel and can legally assume the adjacent parcel's highest & best use and unit value. With regards to the subject site, we have employed the ATF methodology and considered the additional 2.0 FAR "as of right" zoning density and 4 CBRE South Half of 21st Street, Miami Beach, Florida Page 246 of 358 Scope of Work benefit to the abutting owner/developer of the Seagull Hotel property, which has an RM-3, Residential Multifamily, High Intensity zoning designation. The other methodologies are used primarily when comparable land sales data is non-existent. Therefore, these approaches have not been used. 5 CBRE South Half of 21st Street, Miami Beach, Florida Page 247 of 358 Area Analysis Area Analysis cu.. C.UI x ,oa00 �ro..� war,. [wiry N. 91..x.-,. Gitlin i r,.. Mtn W I f�'.rw Y' i..w.rr,r eW i ate_ V."4 Air.'" " . . ft O a I D• .is MGMc 1, t-----+'1016--- 40—.: {_ _ __ c.. i;4' 04, 3" - ., ii Poe,IerroOnnfCbeml, 1t l .,a b ,. - a ..twit pti� )• a..- -I f./ ..lar nti S — .. a..f41.an allow/A,Y _ r - , /_�._ _ , }y !~,. .e-,Poem 1b Il _w 4 - i�. - , • a u1e y. '..., Citi"•..' ; 't "7' 'V'0a1Iw r...••WI.Ir.. -x6*m",er0.o,dat-:4+2.cA•:.:21,2.4o•raa nucvr,Al"am n+na , , The subject is located in Miami-Dade County. Key information about the area is provided in the following tables. POPULATION The area has a population of 2,759,670 and a AREA POPULATION BY AGE median age of 39, with the largest population 500"000 400,000 group in the 30-39 age range and the smallest 300,000 population in 80+ age range. 200.000 100.00o I I I Ii 0 0 9 10 19 20 29 30 39 40-49 50 59 60 69 70 79 80. Population has increased by 263,235 since POPULATION BY YEAR 2010, reflecting an annual increase of 1 .0%. 3500'0 0 0 3.000.000 Population is projected to increase by an 2'500.000 2./59670 2.000.000 2.496.435 additional 134,628 by 2025, reflecting 1 .0% 1.500,000 annual population growth. 1.000,000 500.000 0 2010 2020 2025 6CBRESouth Half of 21st Street, Miami Beach, Florida Page 248 of 358 Area Analysis INCOME The area features an average household MEDIAN INCOME BY YEAR income of $80,823 and a median household $20,000 income of $53,726. Over the next five years, $60'0 $$0,00000 5$2.x2 median household income is expected to 540,000 $30,000 increase by 7.9%, or $852 per annum. $20,000 $10po0 w 2020 2025 EDUCATION A total of 30.8% of individuals over the age of POPULATION BY DEGREE 24 have a college degree, with 19.2% holding a bachelor's degree and 11.6% holding a ■Bachelor's Degree 19.796 graduate degree. .Graduate Degree 44410 ■Other EMPLOYMENT Health Care/Social Assistance Retail Trade Construction Accommodation/rood Services Transportation/Warehousing Prot/Seientdic/iech Services 111.1.11111111111111.01.1.11.10111.11 Fdueational Services MIIMEMIMIMIMMM Other Services level Publ Adm) 1.11111.111111111.1.111.1111111.11111 Admin/Support/Waste Mgmt Srvcs Manufacturing 111111111111.111.1111.. 2% �, - 9. la+ 12.o- 17;r The area includes a total of 1,310,569 employees and has a 7.3% unemployment rate. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Construction, which represent a combined total of 32% of the population. CBRESouth Half of 21st Street, Miami Beach, Florida Page 249 of 358 Area Analysis MIAMI-DADE COUNTY LABOR MARKET FRED - -cmwratt.,V .nkRern-Oaez Cooney ci e20 ac +00000 5305 Oa +3a0W 5302 COC 320.000 I; ;.300000 SP CO3 +,260000 2.0 002 70.000 00000 70•+ 20,2 20,3 m7a 20+5 2010 20.1 20,0 30,6 2030 Shad,•viketc.V5 vac-imo,ncc nw recent ory s ayo+t/ Source.U S.Wneu W taery Supxia Ired.30ou.s/eyyrl •• IMED —UMepb/ewe ided n Mn+-O W.Cant'.R co Sc 2.3 00 200+' 20+7 20,5 20, r,+s ZC•6 20+' Mid 200+6 `c:t • 4vOcares u 5 rectums.,.x mos,recrr Mme a Orwal Source. dYmu of two,Suennes 6ee.30eu3h0.ots •• 8CBRESouth Half of 21st Street, Miami Beach, Florida Page 250 of 358 Area Analysis MIAMI-FORT LAUDERDALE-WEST PALM BEACH MSA EMPLOYMENT Miami Area Employment - July 2020 Local Rate of Employment Loss Similar to the National Average Total nonfarm employment for the Miami-Fort Lauderdale-West Palm Beach, FL Metropolitan Statistical Area stood at 2,476,400 in July 2020, down 202,500 over the year, the U.S. Bureau of Labor Statistics reported today. Miami's rate of job loss, at 7.6 percent, was similar to the national decline of 7.7 percent. (See chart 1 and table 1.) Regional Commissioner Janet S. Rankin noted that Miami's over-the-year employment loss in July was greater than the 191,000 jobs lost in June. (The Technical Note at the end of this release contains metropolitan area definitions. All data in this release are not seasonally adjusted; accordingly, over-the-year analysis is used throughout.) Chart 1. Total nonfarm employment, over-the-year net change in the Miami metropolitan area and its divisions, July 2015—July 2020 Net change 'in thousands, 200 0 100 0 0.0 II1111111111111iIiiiiiMI ■■ .■.■�■■.�1�Ilitlt�>t■■■■■._... 100.0 mimi West Palm Beach-Boca Raton-Dekay Beach Metropolitan Division Fort Lauderdale-Pompano Beach-Deerfield Beach Metropoitan Division -200.0 —_ mum Miami-Miami Beach-Kendall Metropoitan Division -300.0 —Miami-Fort Lauderdale-West Palen Beach Metropolitan Statistical Area -400.0 -- Jul Jan Jul Jan Jul Jan Jul Jan Jul Jan Jui 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 Source- U S. Bureau of Labor Statistics. The Miami area is made up of three metropolitan divisions—separately identifiable employment centers within the larger metropolitan area. All three divisions lost jobs over the year. Miami- Miami Beach-Kendall, the largest of the three divisions with 45 percent of the area's employment, lost 75,900 jobs from July a year ago. The Fort Lauderdale-Pompano Beach-Deerfield Beach Division, which accounted for 32 percent of Miami area's workforce, lost 69,300 jobs, while the West Palm Beach-Boca Raton-Delray Beach Division lost 57,300 jobs over the 12-month period. 9CBRESouth Half of 21st Street, Miami Beach, Florida Page 251 of 358 Area Analysis Industry employment Employment in Miami's leisure and hospitality supersector fell sharply (-85,200) for the 12 months ending in July, the largest loss of jobs among local major industry sectors. In percentage terms, the leisure and hospitality supersector declined 26.1 percent in Miami; nationwide, the rate of job loss was 24.2 percent. (See chart 2.) Chart 2.Total nonfarm and selected industry supersector employment,over-the-year percent change,United States and the Miami metropolitan area,July 2020 Percent change 200 a United States ■Miami 14 a 150 100 50 0.4 00 II5316 ! 1L$ 5 _16 -437� 7g $2 -5.7 Fi3 b9 -150 _10.0 -10 6 -200 153 -250 -24 2 - -26 1 30.0 Total nonfarm Leisure and Trade. Proinsional Educaton Other Government Manufacturing Information Construction f hrtag and Fnanaal nosptatty transportabnand business and heath services loggng activbes and uttkes services services Source U 5 Bureau of Labor Statistics The trade, transportation, and utilities sector in the Miami area lost 32,600 jobs, a 5.3-percent decline over the year. Over half of the jobs lost in this sector were in the Miami metropolitan division (-17,800). Nationally, employment in trade, transportation, and utilities was down 5.7 percent over the year. Two other supersectors in the Miami area lost over 25,000 jobs since last July. The professional and business services supersector in the local area lost 31,300 jobs, down 6.9 percent; nationwide, employment in professional and business services was down 6.7 percent. Miami's education and health services industry lost 25,900 jobs over the year, down 6.4 percent; nationwide, employment in this supersector was down 5.1 percent. Five other local area supersectors had job losses greater than 1,000, ranging from 9,900 in other services to 2,900 in construction. Twelve largest metropolitan areas Miami-Fort Lauderdale-West Palm Beach was 1 of the nation's 12 largest metropolitan statistical areas in July 2020. All 12 areas had over-the-year job losses during the period, with the rates of job losses in 6 areas exceeding the national decrease of 7.7 percent. New York-Newark-Jersey City had the fastest rate of job loss (-13.6 percent), followed by Boston-Cambridge-Nashua (- 12.1 percent). Phoenix-Mesa-Scottsdale (-3.5 percent) had the slowest rate of job loss. (See chart 3 and table 2.) 10CBRE South Half of 21st Street, Miami Beach, Florida Page 252 of 358 Area Analysis Chart 3.Total nonfarm employment,over-the-year percent change.United States and 12 largest metropolitan areas.July 2020 Percent change -2.0 -4.0 -3 5 60 -48 d0 -60 I I -80 -77 -76 � -83 73 -8 6 -10.0 -10 2 -120 j 12 1 if -11 2 -14 0 -13 6 -16.0 United Atlanta Boston Chicago Dallas Houston Los MIarn New Philadelphia Phoenix San Washingbn States Angeles York Francisco Source U S Bureau of Labor Statistic New York lost the largest number of jobs over the year (-1,354,700), followed by Los Angeles- Long Beach-Anaheim (-628,000). The smallest employment loss occurred in Phoenix (-74,000). Annual losses in the remaining nine metropolitan areas ranged from 396,000 in Chicago- Naperville-Elgin to 135,000 in Atlanta-Sandy Springs-Roswell. Over the year, leisure and hospitality lost the most jobs in all 12 metropolitan areas. New York had the largest loss of jobs for this sector (-439,800), followed by Los Angeles (-242,500). Atlanta and Phoenix had the smallest job losses for the leisure and hospitality sector (-48,300 each). The remaining eight areas had job losses ranging from 138,000 in Chicago to 60,500 in Houston-The Woodlands-Sugar Land for this industry sector. Phoenix had over-the-year employment gains in three industry sectors: trade, transportation, and utilities (5,900); education and health services (4,300); and other services (1,000). Dallas-Fort Worth-Arlington added 10,700 jobs in financial activities. No other area had job gains over 1,000. Coronavirus (COVID-19) Pandemic Impact on July 2020 EstabNhment Survey Data BLS has continued to review all estimation and methodological procedures for the establishment survey, which included the review of data, estimation processes, the application of the birth-death model, and seasonal adjustment. Business births and deaths cannot be adequately captured by the establishment survey as they occur. Therefore, the Current Employment Statistics (CES) program uses a model to account for the relatively stable net employment change generated by business births and deaths. Due to the impact of COVID-19, the relationship between business births and deaths is no longer stable. Typically, reports with zero employment are not included in estimation. For the June final and July preliminary estimates, CES included a portion of these reports in the estimates and made modifications to the birth-death model. In addition for both months, the establishment survey included a portion of the reports that returned to reporting 11CBRE South Half of 21st Street, Miami Beach, Florida Page 253 of 358 Area Analysis positive employment from reporting zero employment. For more information, see www.bls.gov/web/empsit/cesbd.htm. In the establishment survey, workers who are paid by their employer for all or any part of the pay period including the 12th of the month are counted as employed, even if they were not actually at their jobs. Workers who are temporarily or permanently absent from their jobs and are not being paid are not counted as employed, even if they are continuing to receive benefits. The length of the reference period does vary across the respondents in the establishment survey; one-third of businesses have a weekly pay period, slightly over 40 percent a bi-weekly, about 20 percent semi-monthly, and c small amount monthly. 12CBRE South Half of 21st Street, Miami Beach, Florida Page 254 of 358 Area Analysis MIAMI-DADE COUNTY TOP PRIVATE EMPLOYERS COMPANY NO. Of- LMPLOYELS INDUSTRY Baptist Health South Florida 11,353 Health Care University of Mami 12,818 Education Amencan Airlines 11.031 Aviation Florida Power&Light 3,011 Utility Company Carnival Cruise Lines 3.500 Hospitality and Tourism Mount Sinai Medical Center 3,321 Health Care Miami Childrens Hospital 3,500 Health Care Royal Caribbean 2.989 Hospitality and Tourism international/Celebrity Cruises Bank of America Merrill Lynch 1000 Banking and Finance Wells Fargo 2,050 Banking and Finance LATAM Airlines/Lan Cargo 900 Aviation AAR Corp.-Aircraft Services 1,160 Aviation N.C.L.Corporation 1.049 Hospitality and Tourism Federal Express 1,161 Trade and Logistics Eulen America 1,205 Professional Services Ryder Integrated Logistics 1,106 Trade and Logistics Miami Herald Publishing Co. 635 Publishing CitiBank 1,000 Banking and Finance Fountainbleau Miami Beach 1,987 Hospitality&Tourism Source:The Beacon Council 13CBRE South Half of 21st Street, Miami Beach, Florida Page 255 of 358 Area Analysis MIAMI-DADE COUNTY TOP PUBLIC EMPLOYERS COMPANY NO. OF EMPLOYEES ! INDUSTRY Miami-Dade County Public 33,477 Education Schools Miami-Dade County 25,502 Local Government Federal Government 19,200 National Government Florida State Government 17,100 State Government Jackson Health System 9,797 Health Care Florida International 3,534 Education University Miami Dade College 2,390 Education City of Miami 3,997 Local Government Homestead AFB 3,250 Military Miami VA Healthcare System 2,500 Health Care City of Miami Beach 1,971 Local Government U.S.Southern Command 1,600 Military City of Hialeah 1,578 Local Government City of North Miami Beach 420 Local Government City of Coral Gables 730 Local Government 14CBRE South Half of 21st Street, Miami Beach, Florida Page 256 of 358 Area Analysis OPENING DAY Growth in nonresidential construction jobs will also be robust because groundbreakings on major projects have become routine in MIA. Phase one of the MiamiCentral train station, which will eventually connect a new intercity train line with local transit options, debuted in May 2019. The $2 billion Miami Worldcenter is transforming 27 acres of parking lots into a vast collection of residential, retail, office and hotel buildings. Over the next few years, the "tallest building in Florida" distinction will pass among multiple skyscrapers in downtown Miami. And county commissioners recently gave final approval to a $4 billion mega-mall that will be America's largest shopping complex if it is completed as planned. CONCLUSION The economy in Miami-Dade County will continue to experience an increase in population, an increase in household income, and an increase in household values. In addition, MIA's international character and its high-skilled, bilingual workforce will help it exceed the U.S. in income growth over the long term. 15CBRE South Half of 21st Street, Miami Beach, Florida Page 257 of 358 Neighborhood Analysis Neighborhood Analysis a4 $a& VE Nk 9 - ..,.1.elk P1.i-1.401. F f M t j 0000. i i ',�w+� _ • 1.,t Mn r•.+.9 .•r. t '.1,.4 WSIT2 /- S . Ali F ,. • ...mar ! v<.•y,2 L 1— MN PI,91 `E .p A W1109 I u� a - 4,.,1,,3 1 .K•`4 9 „.7.: f 4 1f 3 t4'l.*9 I.LY X wo 2>e FS- •E Lk•91 W Nth 9 'M a.' _ �' w .M+Ay 9 .9 � * � r.50' .14 ! b ae._•...: ( . nn t911e 9 • w i 4 .:.P•r — ; 19..099.9• ,_.`l 1� OWa j !T SWct tr 9.. e..,! Z t• •. ' 8 "."'M Cr,•..4. fil . A ' Mr9•w ).:X T.s - Z:t;.4.91- I OWoad e +., .. 99.994 2'a^ i`a 3 z '6 W E• " a..�.T ' 91L.IUA r , . e . r e Warps 'Yr•q ¢ a Wad �� 124`91. 13 a. 7 e•.,en.9 s k ! i e an a .-. Ste` Yowl 91.9 tr -t ii ,is • u..7 A4. sw9 ,.r MV a,•st } a s A'',,6,,.,:x.••9. "a4.4 b`'• i I • .. ,eS y ? ...gem+c - ,Nell a., 4- qt 9R a1. i $.14.11 ` 1''' .. F set 4,,.9n �44,, *ow, e'" •.9•••. 4n 9 ��.. 9r9: e ,,,s,,:a _.rro••.i 1.4 1.+v "L' `*'" i $.,er s''Ls.' Lo.••Jid '14.,,, its,: o [ 9x999. rv:r9 9 S S ; 4. 3 I. F' i d 1'A �p�a. 6' g of 4~ cw..o4a r.•M.If d..ac,aaa..l,,,,,,.,. «es..1.4e,=e-crn•er,,,-4 46e�+•s•, LOCATION The subject property is located along the south side of 215' Street, east of Collins Avenue and west of the 2151 Street Beach Walk in the South Beach submarket of Miami Beach in Miami-Dade County, Florida. Miami Beach is a barrier island approximately one mile wide, ten miles long and extends in a north-south direction along the eastern seaboard parallel to mainland Miami- Dade County between Biscayne Bay and the Atlantic Ocean. The subject is located approximately 5 miles northeast of the Miami Central Business District (CBD). BOUNDARIES The South Beach submarket boundaries may be generally described as follows: North: Arthur Godfrey Road South: Atlantic Ocean/Government Cut East: Atlantic Ocean/beach West: Biscayne Bay 16 CBRE South Half of 21st Street, Miami Beach, Florida Page 258 of 358 Neighborhood Analysis LAND USE Land uses within the subject neighborhood consist of a wide variety of commercial and residential developments. Most recently and in the vicinity of the subject property, the Surf Style building located at 1651 Washington Avenue was renovated; the Ross Dress for Less department store located at 230 Lincoln Road (f/k/a Americas Trade Center) was recently completed and is open for business; and, there is a proposed 150-room hotel at 1685 Washington Avenue where Citibank sold a 7,384-square-foot branch in 2017 for $19.2 million to Sobe Center LLC, managed by hotel developers Ronald Finvarb and Richard Finvarb. Sobe Center has plans to build an eight-story, 82,439-square-foot hotel on the site that would have 150 rooms, two restaurants, a rooftop pool and a parking garage. Residential uses are largely concentrated west of Washington Avenue, with retail and office uses clustered along the Alton Road, 5th Street and Dade Boulevard/Venetian Causeway corridors, as well as the pedestrian-only areas of Lincoln Road Mall. Hotels, condominiums, restaurants and retail are primarily concentrated along Collins Avenue and Ocean Drive with additional retail uses, nightclubs and restaurants on Washington Avenue. Residential uses in the neighborhood are primarily multifamily in design, with smaller buildings housing from eight to 80 units in one- to eight-story buildings. The exception to this situation is found along the Atlantic Ocean/beach and Biscayne Bay shorelines, where several large-scale multifamily residential projects are located, including rental apartments and condominiums. Land uses in the immediate vicinity of the subject include parking lots, small multi-family buildings converted to professional office space, office buildings and, to the immediate south, Lincoln Road Mall. The Lincoln Road pedestrian mall runs east-west from Collins Avenue to Alton Road between 16th and 17th Streets, with storefronts on Lincoln Road and to a lesser extent along the side streets. 17CBRE South Half of 21st Street, Miami Beach, Florida Page 259 of 358 Neighborhood Analysis G imici .r..... .,.Nsi,,r4 111101111.0911.0finklti SWIM o c c.nt�r wnww vogier Come OwMINab w... .. P c..« ars —"we over. ,,,0111116140111 o f www.r Intl WWI 116"1""P'.." tr.r. w t�.t. I. �Aaa __r✓'�M aM PAidRsr;.R+M 1111 11•00 i Z.%I Ca** 1 4/".*. i la 1 1,Issialwa G 2 And1 .Ps Crowns Placa i Y L 1M.. "14,0 ' ,PAT* t;,y ,fi ; t N,.,. X Mo.a t« 16th Savo 3 15UU Uw.I- Es.rot.yy. <� u Viamo Ham,i,Ego ❑ l Ei.„,..uy ...,r1Park 6ato.t 14th 84,44,1 Past a.>f 1 I PF? Since the capital improvement project in 1996, Lincoln Road has experienced substantial changes in tenant mix, including more restaurants and sidewalk cafes, and a shift to traditional retail shopping. At the west end of the mall, Regal Cinema opened an 18-screen stadium style movie theater in 1999. This development was strongly supported by the local municipality and has proved vital in attracting national retailers, such as Banana Republic, Pottery Barn, Williams— Sonoma, Bebe, Swatch, Victoria's Secret's, Ann Taylor Loft, Sunglass Hut, Anthropologie, Books & Books, Chicos, Foot Locker, I. Strada, Morgan Miller, Payless ShoeSource, Quicksilver, White House/Black Market and Express to the pedestrian promenade. The addition of the Regal Cinemas solidified the Lincoln Road redevelopment and began to make it very attractive to the national retailers and high-end restaurateurs. While Lincoln Road is in and of itself is a destination location, the cinemas also serve to attract year-round Miami-Dade residents to Lincoln Road. The Regal Cinemas is one of the most heavily patronized cinemas in South Florida. Anchoring the east end of Lincoln Road Mall was the former New World Symphony which was housed within the subject property, also known as the Lincoln Theatre building. Established in 1987 under the artistic direction of Michael Tilson Thomas, the New World Symphony provides an instructional program to prepare graduates of distinguished music programs for leadership positions in orchestras and ensembles around the world. The New World Symphony recently relocated to 500 17th Street, just north of the subject's Lincoln Theatre location into a Frank Gehry designed concert hall and a 7,000 square foot projection wall on which concerts, video art and films are shown free-of-charge to audiences in Soundscape, a 2.5 acre public park, designed by Dutch architectural firm West 8. 18CBRE South Half of 21st Street, Miami Beach, Florida Page 260 of 358 Neighborhood Analysis Other primary influences in close proximity to the subject also include the Miami Beach Convention Center which provides about one million square feet of exhibition space and meeting hall facilities and is rated as one of the top convention centers in the United States; the Jackie Gleason Theater of the Perfuming Arts at the intersection of Washington Avenue and 17'h Street; Alton Road, a commercially oriented, north-south primary arterial street; and the aforementioned Lincoln Road Pedestrian Mall which provides retail shops, restaurants, cafés and a movie theater complex located at Lincoln Road and Alton Road, just southwest of the subject property. To the east is Ocean Drive, which runs parallel to the Atlantic Ocean and South Beach and is one of the area's premier attractions. The pristine beaches and warm waters of the Atlantic Ocean are to the east side of Ocean Drive, while a host of al fresco dining establishments and some of Florida's most luxurious, high-end hotels such as the Ritz-Carlton, The Delano, The Setai, The Shore Club and The Tides. The stretch of Collins Avenue north of 5th Street and south of the Lincoln Road, which has been transitioning from low rise motels, vintage apartment buildings and small mom & pop stores into national and international branded retail showrooms, including recently announced Tommy Hilfiger, Club Monaco, GAP, Urban Outfitters, Nine West, Sunglass Hut, Deco Denim, Ralph Lauren, Guess, Armani, Kenneth Cole, Versace, Banana Republic, Nine West, Nike and Puma. 19 CBRE South Half of 21st Street, Miami Beach, Florida Page 261 of 358 Neighborhood Analysis =Rr _ — k 0 ono. t IN Nightclubs OM R�.s.rwst !!!!] o ts.t� ; m'v."" ." -7 l S kt.tdr nnal f 'b f. W; Vt„ht)o1 heart V - -_ __- y l -...I Banat'..a I a IN R ubtk __Armory i Kenner,' IN Cole Wrka k.. iii ii Farm_ nil � r -?id01, c' --- _- IMax Stu' vw Wive, fit' j' ' t-. JaseFr, Vess sett----..- -i � �� Z��;, _-Helium Concept H,o Bees-- t_— —,. Maiar_ '�,Sungrms 0 tlosdvrr- Ai- _ I "-Vertigo >ptp , .1.111j --Express G,eas i MEM I '— o t L_-.1I f f Sepneru ,. _ rWry::_.�..... r,. Gap L.:'zrA r rtl f Songless Ntco Wet— irm Hut A')c CasrnepcsNi Nike AG)Shops B`— ��t Yr w rhe West ,It. tau c -.Urban Mrernw Outfitters Fit Clue Mom:.; Rlh Strata 555 Watihingian 111111 - /-7 d g C _ 1.—Specs Music Mil Ji .4e The South of Fifth submarket (a.k.a. SoFi) is an affluent neighborhood in South Beach that spans from South Pointe Park north to fifth street and east-west from Biscayne Bay to the Atlantic Ocean. Several notable features of the neighborhood include the South Pointe Park, a 17-acre park and bay front promenade that features a play area, open green space and walkways for outdoor exercising and direct access to the beach. There are also several well-known restaurants including the historic Smith & Wollensky, Joe's Stone Crab, Prime 112, Prime Italian and Milos. The South of Fifth residential condominium towers is well known for luxury with Glass, Portofino Tower, Apogee South Beach, Icon, Murano Grande, Murano at Portofino, Continuum Towers, Ocean House, South Pointe Tower and the Yacht Club at Portofino. ACCESS Overall, access to and throughout the subject neighborhood is considered good. The major east- west thoroughfares providing direct access to the subject area from the Miami mainland include the Venetian Causeway that becomes 1 Th Street, located immediately north of the subject; 5th Street/MacArthur Causeway (US Highway No. 41/State Road Al A), located roughly two miles Z0CBRE South Half of 21st Street, Miami Beach, Florida Page 262 of 358 Neighborhood Analysis south of the subject property; and Arthur Godfrey/Julia Tuttle Causeway (1-195 located approximately two miles north of the subject property. The Miami Tunnel opened in 2014 to alleviate congestion from PortMiami along the MacArthur Causeway. These arteries connect South Beach to mainland Miami to the west, as well as intersect with the primary north-south arteries of Alton Road, Collins Avenue, Washington Avenue and Ocean Drive. Interstate 95 is the major north-south expressway providing direct access to Miami-Dade County, as well as points north along the eastern seaboard. Biscayne Boulevard (U.S. Highway No. 1) is a well-traveled artery providing north-south access from S.E. 3rd street in downtown Miami to the Broward County line to the north. Direct access to the subject property is provided via Lenox Avenue which acts as the subject's western boundary line and is a two-way, two-lane, north-south city street. The immediate subject area has average access via the local artery/highway network, and good access to the area business and commercial community. In addition to the existing access points, there is a proposal to connect Miami Beach with downtown Miami via a monorail line. The elevated monorail would include three (3) stations and run along the south side of the MacArthur Causeway. One station would be built on the Miami side of the line and close to where the causeway begins, while the other two stations would be on Miami Beach near the end of the causeway, and the other at the intersection of Washington Avenue and 5th Street. DEMOGRAPHICS Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table: 21 CBRE South Half of 21st Street, Miami Beach, Florida Page 263 of 358 Neighborhood Analysis SELECTED NEIGHBORHOOD DEMOGRAPHICS 100 21st Street 1 Mile 3 Mile 5 Mile 33139- Miami-Dade Miami Beach,FL 33139 Radius Radius Radius Miami Beach Florida County Population 2025 Total Population 17,336 63,784 252,611 41,612 23,056,641 2,894,298 2020 Total Population 16,937 61,792 227,358 40,156 21,587,015 2,759,670 2010 Total Population 16,108 58,608 182,157 38,179 18,801,310 2,496,435 2000 Total Population 17,650 56,590 159,785 37,950 15,982,378 30,982 Annual Growth 2020-2025 0.47% 0.64% 2.13% 0.71% 1.33% 0.96% Annual Growth 2010-2020 0.50% 0.53% 2.24% 0.51% 1.39% 1.01% Annual Growth 2000-2010 -0.91% 0.35% 1.32% 0.06% 1.64% N/A Households 2025 Total Households 9,818 35,137 127,300 24,766 8,989,496 995,690 2020 Total Households 9,663 34,233 114,553 24,030 8,438,100 951,252 2010 Total Households 9,329 33,073 91,238 23,221 7,420,802 867,352 2000 Total Households 10,331 32,159 74,869 23,125 6,337,929 776,774 Annual Growth 2020-2025 0.32% 0.52% 2.13% 0.61% 1.27% 0.92% Annual Growth 2010-2020 0.35% 0.35% 2.30% 0.34% 1.29% 0.93% Annual Growth 2000-2010 -1.02% 0.28% 2.00% 0.04% 1.59% 1.11% Income 2020 Median Household Income $52,463 $64,929 560,429 $58,146 $56,362 553,726 2020 Average Household Income $87,075 5109,837 S96,677 $98,025 $81,549 $80,823 2020 Per Capita Income $49,951 $60,891 $49,129 $58,754 S31,970 S27,939 2020 Pop 25+ College Graduates 6,950 28,453 89,250 18,600 4,839,094 604,612 Age 25+ Percent College Graduates-2020 49.8% 56.0% 50.6% 54.5% 31.0% 30.8% Source: ESRI CONCLUSION The South Beach submarket is expected to have growth in population and households through high density, in-fill redevelopment opportunities and reflects a middle-to-upper-income demographic profile. The outlook for the neighborhood is for favorable performance over the foreseeable future. Many neighborhood improvements are new and in good-to-excellent condition. Access to the neighborhood is good and utility services are adequate. Supporting commercial uses are good and surrounding land uses are compatible. Overall, it is our opinion that the subject neighborhood will continue to remain a very desirable area, with continued potential for appreciation. In addition, the Miami Beach submarket is a destination resort community and international "hot spot" that continues to flourish over the long term despite adverse macro-economic cycles. 22 CBRE South Half of 21st Street, Miami Beach, Florida Page 264 of 358 Site Analysis SURVEY EXHIBIT EXHIBIT "A" LEGAL DESCRIPTION: RIGHT OF WAY VACATION FOR A PORTION OF 21st STREET Va gyp. .... - :. --e'er • :_..., c-e ::-1:, _ __-. _•--. _s. ,':5 SURVEYORS NOTES: SURVEYORS CERTIFICATION: _.__ , . S......:es. 'Nut valid without the signature and original raised seal or a rigtal signature of the Florida L v ensed Surveyor and Mapper shown belwe FORTIN,LEAVY,SKILES, INC.,LB3653 Digitally signed by Daniel C Fortin DN:c=US,o..--Unaffiliated, / -�� ou=A01410D0000017402A2BF420004 295B,cn=Daniel C Fortin a> (---- . 1 1. 1 Date:2020 24 6.45:34•05'00' °raw°Hy LEGAL DESCRIPTION,/IVH NOTES&CERT/F/CAT�VV arra as No: FORTIN, LEAVY, S KILES, INC. -s°''` __ 'eif l - . , CONSULTING ENGINEERS,SURVEYORS&MAPPERS Job'Na -- FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER 00003653 Dwg.No. ___ __ 180 Northeast 168th Street/North Miami Beach,Florida 33162 ' -- -- -- Phone 305-653-4493/Fax 305-651-7152/Email Shed' of - - _ BQtLsurvrY.00m 23 CBRE South Half of 21st Street, Miami Beach, Florida Page 265 of 358 Site Analysis SURVEY EXHIBIT EXHIBIT "A" ` I 0 1 Qw w 1 CO> C —Y PARK _CC 21st STREET c ""5PW mono 25.00 N 70 02'49'W =EN-E-'.-NE 260 16' (PARK AVENUE-PLAT) r (PU&CRkI)IT Of WAY) — c _ [ 1 S It)0'49.'f _ 200 40 -o.% •.:3UN\AuN 10'5711'•I.._ .CR--NES- Nen'.e-),Y 25 00' LU WES_K_0-5 ANC:AS cRQL. Z —I ag6g 1 w= `iI NOT oLswrurt 0 >L LOT 9 LOT 7 LOT 6 LOT 3 W§41LOT 1 PER PLAT VJ -I S 8 -EASTERLY Z== E\� M e:VC 'er♦-, ♦L -. _ S _ Z.I OF--eV AV 3EA�,Ak?OY2VE\- -v-A\Y .OF THE Jr=i ,_A-ro4L,=A:ES71 - J - NORTHERLY O I -_ _ LE O!LOT 2 I I .-I B L OIC K A I I LOT 0 LOT 8 LOT 6 LOT 4 LOT 2 NOT SWOP/10. 1 1 I t4:1140k, GRAPEIC SCALL t Ike H...10 i- imilliimmoommum 6 f=E4 1 J., 60 IL Drum R :)w1 SKETCH OF DESCRIPTION Cad No. . _ a RefD,,p - - - - FORTIN, LEAVY, S KILES, INC. s� Job F CONSULTING ENGINEERS,SURVEYORS&MAPPERS No FLORIDA CERTIFICATE OF AUTHORIZATION NUMBUR,00003653 Dwg.No. 180 Northeast 168th Street/North Miami Desch,Florida 33162 - P��' Phone 305-653-4493/Fax.305-651 7152/Email I1staIlaltavey.00m ."Sbaf Of 24 CBRE South Half of 21st Street, Miami Beach, Florida Page 266 of 358 Site Analysis SURVEY EXHIBIT EXHIBIT "A" STREET VACATION w CITY PARK dr11.1 21st STREET Q - momr U 9 5 0In _ 6EA[Iu-MOTEL 10 B 0 1. 20th STREET p) 2 91 \ �$tr v -L A 5 A,;1 (% Drawn ByLOCATION SKETCH Cad.Na Soale -; FORTIN, LEAVY, S KILES, INC. Ret.Dwg Job.No. -• • CONSULTING ENGINEERS,SURVEYORS&MAPPERS - FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER 00003653 Dwg.No. 180 Northeast 168th Street/North Miami Reach,Florida 33162 - - - -- Phone 305-653-4493/Fax 305-651-7152/Email flstllrtnvey.com Shoot - of - 25 CBRE South Half of 21st Street, Miami Beach, Florida Page 267 of 358 Cl) PO C -3.- 0 I Q 0 o LA 171 IJV NOT TO SGML v MONO ow Rl _._ft.s ,«�:,, .:; .,�:�,: ROAD VACATION77 �. 20 O C3 vACATEDA•L.A- A,OESSt n Q PANco m • 0 1'S $BEET 9 . _. .�_.,1. -,._. _. • a z T .. .—..—.. Inh -y_ 1 Q O u.,••• II4-- D Ko-` - _ .. ... _ ... r` t - I a IY n.wr , p 1N Cr: 0 { U a #r '.1._ � fCO Oui N'� 1 - , I NCt] �Jq 1 i 4 E • A Ta;; � — > 4S OD U p i n+. ,E,•T<-+�TT'.P 'N0.....1:-;;,` .TT.S ♦— �♦tt'_to .s.afF a G a' sT�iF .flT t T p co .. I -....74+� k t . Nva r )r 6. 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J v rT { 1r e••enua.rt.lama.MIcr..inRtn.Ilwo Ancl.CdL Sn4.0.1.r,nod..No eXe aor r..A„iara.A., Feet / I, r1t.wnwr' •I4RMrdr.ri..,r...{I.cY i.. ^R se.,Nr�t~• _6 U OU rrwpe..re.r.rer 0 250 500 1.000 1.500 2.000 repbwr,a.a taw Esw.4R,UEG&wim.v Sia 0vrleh1 ,ty DNR rRiasr.aarx«.2040 27CBRE South Half of 21st Street, Miami Beach, Florida Page 269 of 358 Site Analysis Site Analysis The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area 0.15 Acres 6,736 Sq. Ft. Net Site Area 0.15 Acres 6,736 Sq. Ft. Primary Road Frontage 21st Street 25 Feet Secondary Road Frontage 21st Street Beach Walk 25 Feet Additional Road Frontage Miami Beach Drive n/a Shape Rectangular Topography Level,At Street Grade Zoning District RM-3, Residential Multifamily, High Intensity Flood Map Panel No.&Date 12086C0317L 11-Sep-09 Flood Zone Zone AE Adjacent Land Uses Hotel, beach walk, municipal parking lot, public park, mixed-use retail/residential &hotel uses Comparative Analysis Rating Visibility Good street& pedestrian beach walk Functional Utility Good Traffic Volume Heavy neighborhood&seasonal tourist traffic Adequacy of Utilities Assumed adequate Landscaping Urban streetscape Drainage Assumed adequate Utilities Provider Availability Water City of Miami Beach Yes Sewer City of Miami Beach Yes Natural Gas Contract service Yes Electricity FPL Yes Telephone AT&T land lines Yes Miami-Dade County(MDT) Metrobus Mass Transit and Miami Beach Trolley Other Yes tis Unknown Detrimental Easements X Encroachments X Deed Restrictions X Reciprocal Parking Rights X Various sources compiled by CBRE LOCATION The subject is on the south side of 21' Street, just east of Collins Avenue and on the west side of the Beach Walk. 28 CBRE South Half of 21st Street, Miami Beach, Florida Page 270 of 358 Site Analysis LAND AREA The land area size was obtained via legal description and sketch. The site is considered adequate in terms of size and utility. There is no unusable, excess or surplus land area. SHAPE AND FRONTAGE The site is rectangular and has adequate frontage along local streets and pedestrian walks. INGRESS/EGRESS Pedestrian and vehicular ingress and egress is available to the site via the 21' Street and the Miami Beach Drive frontage. TOPOGRAPHY & INFRASTRUCTURE The subject site is improved to road grade in a built out submarket with all off-site infrastructure in-place including urban streetscape, pedestrian sidewalk, underground utilities, and concrete curbs, gutters & storm drainage system. The topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist. SOILS A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use. NON-EXCLUSIVE EASEMENT The subject lot has rights to a 20-foot wide alley with direct access to Collins Avenue. The easement connects the southeast corner of the subject site to the 20-foot alley way thereby providing ingress/egress to the rear of subject site and any existing or proposed improvements. EASEMENTS AND ENCROACHMENTS There are no other known easements or encroachments impacting the site that are considered to affect the mcrketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. COVENANTS, CONDITIONS AND RESTRICTIONS There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain 29CBRE South Half of 21st Street, Miami Beach, Florida Page 271 of 358 Site Analysis a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision. UTILITIES AND SERVICES The site includes all municipal services, including police, fire and refuse garbage collection. All utilities are available to the site in adequate quality and quantity to service the highest and best use. ENVIRONMENTAL ISSUES Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did not reveal any obvious issues regarding environmental contamination or adverse conditions. The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. ADJACENT PROPERTIES The adjacent land uses are summarized as follows: North: Collins Park municipal parking lot. South: Seagull Hotel (dark). East: 215'Street Beach Walk and Atlantic Ocean. West: Mixed-use retail/hotel and Collins Avenue. The adjacent properties provide a dense cluster of land uses in support of a beach front resort community. CONCLUSION The site is strategically located along a heavily travelled pedestrian path to the Atlantic Ocean, the beach front and to resort hotels. 30CBRE South Half of 21st Street, Miami Beach, Florida Page 272 of 358 Zoning ZONING MAP fa OFF,C,AO iNG OF T4, i CITY OF - �•fir MIAMI BEACH %. ' •FLORIDA• ,"-1.„..,..„ . q b1 ',.:\:)-.1 7' f . .. -:_:-'0'-L'4.2 '''''' it T ' ` j . / = _ 1 1 i 31CBRE South Half of 21st Street, Miami Beach, Florida Page 273 of 358 Zoning • HISTORIC DISTRICTS MAP HISTORIC DISTRICTS AND SITES I ' I i OF THE (__ Cf TY OF MIAMI BEACH ‘, i •FLORIDA• f ei MGORPORATED IV! i r I 1=I _t. )/1// ti1� — 111.71 f1 - •17' 11,1 • r T>71 • ' f i` IR MIN:BEACH 32 CBRE South Half of 21st Street, Miami Beach, Florida Page 274 of 358 Zoning Zoning The following chart summarizes the subject's zoning requirements. ZONING SUMMARY Zone RM-3,Residential Multifamily,High Intensity Purpose The RM-3 residential multifamily, high intensity district is designed for high intensity multiple-family residences and hotels. Main Permitted Uses The main permitted uses in the RM-3 residential multifamily,high intensity district are single-family detached dwelling;townhomes;apartments;apartment-hotels;and hotels. Conditional Uses The conditional uses in the RM-3 residential multifamily, high intensity district are adult congregate living facility; day care facility; nursing home; stand-alone religious institutions; private and public institutions; schools; commercial or noncommercial parking lots and garages; accessory outdoor entertainment establishment; accessory neighborhood impact establishment; and accessory open air entertainment establishment as set forth in article V,division 6 of this chapter. Accessory Uses 1) Those uses permitted in article IV,division 2 of this chapter. 2) Alcoholic beverage establishments pursuant to the regulations set forth in Chapter 6. 3) Accessory outdoor bar counters,pursuant to the regulations set forth in Chapter 6,provided that the accessory outdoor bar counter is not operated or utilized between midnight and 8:00 a.m.;however,for an accessory outdoor bar counter which is adjacent to a property with an apartment unit,the accessory outdoor bar counter may not be operated or utilized between 8:00 p.m.and 8:00 a.m. 4) Oceanfront hotels with at least 100 hotel units may operate and utilize an accessory outdoor bar counter, notwithstanding the above restriction on the hours of operation,provided the accessory outdoor bar counter is(i)located in the rear yard,and(ii)set back 20 percent of the lot width(50 feet minimum)from any property line adjacent to a property with an apartment unit thereon. 5) RM-3 properties within the"West Avenue Corridor"may not have accessory outdoor entertainment establishments.Notwithstanding the foregoing,a property that had a Legal Conforming Use as of May 28, 2013,shall have the right to apply for and receive special event permits that contain entertainment uses. Prohibited Uses The prohibited use in the RM-3 residential multifamily,high intensity district is accessory outdoor bar counter, except as provided in section 142-244. For properties located within the West Avenue Corridor,hotels and apartment-hotels,except to the extent preempted by Florida Statutes Section 509.032(7),and unless a legal conforming use. Properties that volu,ttarily cease to operate as a hotel for a consecutive three-year period shall not be permitted to later resume such hotel operation.Without limitation,(a)involuntary hotel closures due to casualty,or(b)cessation of hotel use of individual units of a condo-hotel,shall not be deemed to be ceasing hotel operations pursuant to the preceding sentence. Source City of Miami Beoch Planning&Zoning Deportment 33 CBRE South Half of 21st Street, Miami Beach, Florida Page 275 of 358 Zoning ZONING SUMMARY-Continued Maximum FAR 1) Lot area equal to or less than 45,000 sq.ft.-2.25;lot area greater than 45,000 sq.ft.-2.75;oceanfront lots with lot area greater than 45,000 sq.ft.-3.0. 2) Notwithstanding the above,oceanfront lots in architectural district shall have a maximum FAR of 2.0. 3) Notwithstanding the above,lots which,as of the effective date of this ordinance(November 14,1998), are oceanfront lots with a lot area greater than 100,000 sq.ft.with on existing building,shall have a maximum FAR of 3.0;however,additional FAR shall be available for the sole purpose of providing hotel amenities as follows:the lesser of 0.15 FAR or 20,000 sq.ft. Minimum Lot Area 7,000 SF Minimum Lot Width 50 Feet Minimum Unit Size SF 550-SF for new construciton;400-SF for rehabilitated buildings;15%,300-335-SF for hotel units&85%, 335-SF. For contributing hotel structures,located within an individual historic site,a local historic district or a national register district,which are renovated in accordance with the Secretary of the Interior Standards and Guidelines for the Rehabilitation of Historic Structures as amended,retaining the existing room configuration and sizes of at least 200 square feet shall be permitted. Additionally,the existing room configurations for the above described hotel structures may be modified to address applicable life-safety and accessibility regulations,provided the 200 square feet minimum unit size is maintained,and provided the maximum occupancy per hotel room does not exceed 4 persons. Average Unit Size-SF 800-SF for new construciton;and,550-SF for rehabilitated buildings Maximum Building Height-Feet 150 Feet for oceanfront lots;200 Feet in architectural district; 120 Feet for new construction;and,50 Feet for ground floor additions(whether attached or detached)to existing structures on oceanfront lots-50 (except as provided in section 142-1161). Maximum Number of Stories 16 Stories for oceanfront lots;22 Stories for architectural district; 13-Stories for new construction;and,5 Stories for ground floor additions(whether attached or detached)to existing structures on oceanfront lots (except as provided in section 142-1161). Notwithstanding the above,for oceanfront lots located within a locally designated historic district or site,but not within the architectural district,with less than 400 feet of lineal frontage along Collins Avenue and containing at least one contributing structure,the maximum building height for ground floor additions to existing structures,whether attached or detached,shall be as follows: 1) For existing structures greater than five stories in height,the maximum height shall be limited to ten stories or the height of the roof line of the main structure on site,whichever is less.At the discretion of the historic preservation board,the maximum height of the ground floor addition may exceed ten stories if the existing and surrounding structures are greater than five stories in height,provided the addition is consistent with the scale and massing of the existing structure. 2) For existing structures five stories or less in height,the maximum height shall be limited to five stories. Source: City of Miami Beach Planning&Zoning Department 34 CBRE South Half of 21st Street, Miami Beach, Florida Page 276 of 358 Zoning ZONING SUMMARY-Continued Setbacks; Front-At Grade Parking Lot 20 Feet Front-Subterranean 20 Feet Front-Pedestal 20 feet,except lots A and 1;30 feet of the Amended Plat Indian Beach Corp.Sub.,50 feet for lots 231-237 of the Amended Plat of First Ocean Front Subdivision. Front-Tower 20 feet+ 1 foot for every 1 foot increase in height above 50 feet,to a maximum of 50 feet,then shall remain constant.Except lots A and 1-30 of the Amended Plat Indian Beach Corporation Subdivision and lots 231-237 of the Amended Plat of First Ocean Front Subdivision 50 feet. Interior Side-Parking Lot 5 feet,or 5%of lot width,whichever is greater. Interior Side-Subterranean 0.5 feet,or 5%of lot width,whichever is greater.(0 feet if lot width is 50 feet or less) Interior Side-Pedestal Sum of the side yards shall equal 16%of lot width;Minimum-7.5 feet or 8%of lot width,whichever is Interior Side-Tower The required pedestal setback plus 0.10 of the height of the tower portion of the building.The total required setback shall not exceed 50 feet. Side Facing Street-Parking Lot 5 feet,or 5%of lot width,whichever is greater. Side Facing Street-Subterranean 5 feet,or 5%of lot width,whichever is greater. Side Facing Street-Pedestal Sum of the side yards shall equal 16%of lot width;Minimum-7.5 feet or 8%of lot width,whichever is Side Facing Street-Tower Sum of the side yards shall equal 16%of the lot width;Minimum-7.5 feet or 8%of lot width,whichever is Rear-At Grade Parking Lot Non-oceanfront lots-5 feet Oceanfront lots-50 feet from bulkhead line Rear-Subterranean Non-oceanfront lots-0 feet Oceanfront lots-50 feet from bulkhead line Rear-Pedestal Non-oceanfront lots-10%of lot depth Oceanfront lots-20%of lot depth,50 feet from the bulkhead line whichever is greater. Rear-Tower Non-oceanfront lots-15%of lot depth;Oceanfront lots-25%of lot depth,75 feet minimum from the bulkhead line whichever is greater. Notwithstanding the above, oceanfront lots located in the Miami Beach Architectural District shall be permitted to construct detached additions at a height not to exceed 25 feet and shall have setback requirements as follows: Side,interior&street:5 feet. Rear:10%of lot depth or the western edge of the Oceanfront Overlay,whichever is greater. In the Morris Lapidus/Mid-20th Century Historic District the roof-top additions,whether attached or detached,may follow the established lines of the interior side setbacks of the existing structure on the site, subject to the review of the historic preservation board. Additional Regulations for New In the RM-3, residential district, all floors of a building containing parking spaces shall incorporate the Construction following: 1) Residential or commercial uses, as applicable, at the first level along every facade facing a street, sidewalk or waterway. For properties not having access to an alley, the required residential space shall accommodate entrance and exit drives. 2) Residential uses above the first level along every facade facing a waterway. 3) For properties less than 60 feet in width,the total omount of residential space at the first level along a street side shall be determined by the design review or historic preservation board,as applicable.All facades above the first level,facing a street or sidewalk,shall include a substantial portion of residential uses;the total amount of residential space shall be determined by the design review or historic preservation board,as applicable,based upon their respective criteria. Off-Street Parking; Apartment&Apt.-Hotel 1 spaces per unit for units between 550 to 999 SF 1.75 spaces per unit for units between 1,000 to 1,200 SF 2.0 spaces per unit for units above 1,200 SF Alcoholic Beverage Establishment 1 space per 4 seats&1 space per 60-SF of non-seating area Amusement Place 1 space per 60-SF Beachfront Cafe No parking requirement Outdoor Cafe 1 space per 4 seats Sidewalk Cafes No parking requirement Hotel 1 space per unit for structures under 250-units Office 1 space per 400-SF Retail Store 1 space per 300-SF Source: City of Miami Beach Planning&Zoning Deportment 35 CBRE South Half of 21st Street, Miami Beach, Florida Page 277 of 358 Zoning ANALYSIS AND CONCLUSION The subject is a 0.15-acre (6,736 sq. ft.) paved & improved public right-of-way that is zoned RM- 3, Residential Multifamily, High Intensity and located in the Ocean Drive/Collins Avenue Historic District and the Miami Beach Architectural District with an "as of right" zoning FAR of 2.0. The abutting property owner/developer of the Seagull Hotel, BHI Miami, Ltd., is interested in purchasing from the City of Miami Beach. The proposed acquisition & assemblage would permit an increase in overall zoning density necessary to renovate & expand the Seagull Hotel. In turn, BHI Miami, Ltd. would provide the public with a perpetual roadway and pedestrian access easement and other public benefits to be negotiated with the City. Additional information may be obtained from the City of Miami Beach Planning & Zoning Department. For purposes of this appraisal, CBRE has assumed the information obtained is correct. 36 CBRE South Half of 21st Street, Miami Beach, Florida Page 278 of 358 Tax and Assessment Data Tax and Assessment Data AD VALOREM TAX INFORMATION Subject Assessor's Parcel No. Parcel Description 2019 2020 Proforma 02-3226-001-0040 Seagull Hotel (dark) 18,176,200 18,176,200 $7,400,000 Subtotal $18,176,200 $18,176,200 $7,400,000 %of Assessed Value 100% 100% 85% Final Assessed Value 18,176,200 18,176,200 $6,290,000 General Tax Rate (per$100 A.V.) 1.937850 1.935960 1.935960 Total Taxes $352,227 $351,884 $121,772 Less: 4%Early Pay Discount ($14,089) ($14,075) ($4,871) Total Taxes $338,138 $337,809 $116,901 Source: Assessors Office The subject property is currently owned by a municipal government and is exempt from taxation. However, if the subject property were to be sold to the abutting property owner, there Miami- Dade County Assessor's office could assign a tax folio number for assessment purposes. According to the "just value" statute for all Counties within the State of Florida, the assessment for taxation purposes, is supposed to reflect 100% of market value, less cost of sale, i.e. marketing & real estate commissions, transaction & mortgage recording fees, etc., which typically equates to 65% to 85% of a recorded sale price and/or a market value estimate. According to a representative of Miami-Dade County Revenue Collector, there are no delinquent property taxes encumbering the subject. 37 CBRE South Half of 21st Street, Miami Beach, Florida Page 279 of 358 Market Analysis Market Analysis - Macroeconomic ECONOMIC IMPACT OF COVID-19 As of the current date of value and the date of this report, the nation, region, and market area continue to be impacted by the COVID-19 pandemic. In this section we provide a brief overview of the observed and anticipated impacts of COVID-19 from a macroeconomic perspective based on various CBRE sources. For further and updated information, please visit CBRE's resource center at In this section, we present the "House View" developed by CBRE Econometric Advisors (CBRE-EA). CBRE-EA has revised its global GDP estimates to project significant negative growth in the short term, followed by a relatively rapid recovery in late 2020/early 2021, but with a slightly negative longer-term impact as illustrated below: COVID-19 WILL HAVE A PERMANENT IMPACT ON GLOBAL GDP Global real GDP rode,;Q4 2019 - 1001 its It. - 9B 202 . The COVID-19 pandemic brought an abrupt end to a 10+ year economic cycle in the US. Disrupted. As of September 2020, CBRE is anticipating an annual GDP decline of 4.8% followed by an equal 4.8% growth in GDP for 2021 in the US. CBRE-EA is projecting a return to economic growth in Q4 2020 that should lead to a reasonably quick fall in unemployment in the U.S., though not to the level seen just prior to the crisis. The CBRE estimate for Full-Year GDP Growth and Unemployment rate is shown on the following page as well as forecast from multiple sources. 38CBRE South Half of 21st Street, Miami Beach, Florida Page 280 of 358 Market Analysis U.S. ECONOMIC FORECASTS COMPARED Fv1I r c,r,r Cinch ux,mpw.,e„t Hak• SIM sl y aim mg r supp . so.,.d n.._a v.,,x WEIR : ! w,..of ro. 'Alma , Cr*, MIMI QP c51 Asdoc.Nar ^1.0,14 6.,.,ea Fr , ®23 INIMPITPUM B Eco W44' vide.Forpe 40 "P 111111111111110W•m° Unemployment has historically been highly correlated with vacancy; the following chart illustrates historical trends for unemployment and all-property vacancy rates in the U.S. UNEMPLOYMENT IS HIGHLY CORRELATED WITH VACANCY U.S. unemployment rate and all-property vacancy rate . 6 111...•/// 2 Q Q Q 0 Q Q Q ° 0 p Qp p Q _Q Q C C: 9 Qpp 3 Q Q Q Q O Q J Q Q Q Q 3 g Q Q P LT >a O O P o P ? O O a 8 b O g c' - h M n .n o m a N - N P a a U P P a P a a6 O 0 O O O O O O 0'` O O O O 0 O O O O O O ^ CC N N Cv N (Y .l CW C,. .'. N N N N N N N CV h .v h h ., N Source. E,onan,,tHcAc.ISRrN.CUE Hous: "_ : 1 ;; ECONOMIES MOVING OUT OF "LOCKDOWN" Several countries in Asia and Europe, where the COVID-19 outbreak appears to have peaked, are gradually reopening their economies. While a vaccine has not yet been made available, there are signs of recovery. Since the virus originated in China, they were the first to enter recovery. Recent Q2 figures from China indicate that GDP grew 3.2% in the second quarter compared to the same time one year ago. This is a clear indicator of how things could evolve in the US, and a rebound in China is likely to impact a number of trade-related channels globally. 39 CBRE South Half of 21st Street, Miami Beach, Florida Page 281 of 358 Market Analysis ECONOMIES GRADUALLY RETURN TO NORMAL GDP-lead indicator and lockdown stage comparison LOCKDOWN SEMI-EASING LOCKDOWN GRADUAL OPENING 70%NORMAL LIFE FREEFALL RECESSION ABU.ATIO'er Norway • '- Denmark zer r""•. Germany. _r�. y Netherlands Switzerland France USA. lial UK Singapore y elo: Australia` Iron' Canada �%:eCl�O NO LOCKDOWN • South Korea • Taiwan • Japan • Sweden Sooner CBRF R.seorrh,t;ongle Mubi6ly!n�:lex St pti tuber 2020. A full recovery is dependent on when the US returns to a sense of "normalcy." While there has been a gradual easing of restrictions, many across the US continue under work-from-home conditions and many schools remain under remote learning into September. In addition, social distancing and restrictions on large gatherings continue throughout the US. While a surge in cases during the second quarter delayed reopening progress, many states in late September and early October are experiencing reopening of businesses, schools, offices, and restaurants. KEY TAKEAWAYS & OBSERVATIONS The following points summarize key points from CBRE-EA and CBRE's Americas Research: • The brunt of the impact from COVID-19 has continued to persist. Initial macroeconomic projections for stabilization in Q3 2020 and recovery in Q4 has likely been prolonged due to the rise in cases following initial reopening efforts in Q2 2020. • Though the labor market remains under significant strain, unemployment across the nation has continued to improve from its April highs. Unemployment is expected to progress its downward trend but may take 24-36 months to fall back to pre-crisis levels. • The Fed's role in stabilizing the U.S. economy has been immense, including purchases of corporate debt at levels not seen in the Great Financial Crisis. The Fed's balance sheet has jumped to over $7 trillion at the end of September, up from just over $4 trillion at the beginning of 2020. • Real estate typically lags macroeconomic indicators and could see a "swoosh-shape" recovery. COVID-19 will impact various industries differently. CBRE-EA is currently 40CBRE South Half of 21st Street, Miami Beach, Florida Page 282 of 358 Market Analysis anticipating a phased recovery with impacts varying by property type with industrial and multi-family projected to have the quickest recovery followed by office and then retail. • Capital values are viewed to be broadly resilient over a 24-36 month horizon, with significant variation based on sector, location and profile. • Pent-up demand and stimulation policy are expected to aid a rapid recovery. • Commercial real estate debt markets have been evolving rapidly and dramatically since the COVID crisis. Loan spreads then narrowed significantly. Commercial mortgage rates range from 3.5% to more than 4% for most conservatively underwritten deals; value-add and riskier deals are seeing widened spreads and higher overall rates. Adequate capital still exists from banks, life companies and the GSEs, while the CMBS market remains in recovery mode and debt funds vary depending on their capital sources. • A bounce back is already being seen in Asia Pacific. In China, consumption continued to rebound in Q3, supported by pent up demand exhibited by shoppers emerging from lockdown. • A post-pandemic reality will emphasize public safety, technology, and optimizing human capital. MACROECONOMIC CONCLUSIONS Initially, market participants were expecting a rebound between the second half of 2020 and first half of 2021. However, due to increased cases following initial reopening efforts in Q2 2020, recovery for the US economy has lost momentum; resulting in a potentially prolonged recovery timeline. The pace of the recovery will depend in large part on containment of the pandemic, timing of vaccine or other medical solutions, mandated restrictions and policy responses. Unemployment has continued to improve from its April highs, however, the gap between current and pre-pandemic levels is still immense. Fiscal and monetary supply for the economy have been unprecedented and, together with pent-up demand, are expected to enable a relatively sustained return to normalcy once health-oriented concerns are alleviated. If a second wave of the virus can be managed effectively, high rates of grow'h can be expected in 2021. A "V" shaped recovery is broadly anticipated for the broad economy, whereas real estate is likely to lag somewhat with a "swoosh" shaped recovery expected. There will be short term disruptions that will impact rent collections, near-term vacancies, rent growth, and lease-up across most property types. The impact and recovery will vary by city and by property type. Overall, market participants are indicating a pause across most sale and lease transactions as buyers and tenants continue to navigate this period of uncertainty. 41CBRE South Half of 21st Street, Miami Beach, Florida Page 283 of 358 Highest and Best Use Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT Legal Permissibility The legally permissible uses were discussed in the Site Analysis and Zoning Sections. Physical Possibility The subject site is a public right-of-way that is adequately served by on-site improvements and off-site infrastructure. However, the small size and location renders the site undevelopable as a standalone property. Existing structures on abutting properties represent high density, mixed-use retail, hotel & residential uses that provide evidence for the physical possibility of development if assembled into a larger, developable site. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. With respect to the legal uses for the subject site, the local submarket is enjoying a cycle of new development including high density, luxury high-rise residential condominium & hotel towers and supporting retail uses. In addition, in the Sales Comparison section we note several comparable sales that have recently been acquired for mixed-use, multi-family residential and hotel developments with ancillary retail, restaurant & bar/lounge uses. Maximum Productivity - Conclusion The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land. Based on the information presented above and upon information contained in the neighborhood analysis, we conclude that the highest and best use of the subject parcel would be the proposed acquisition & assemblage with the abutting property owner for renovation & expansion of the Seagull Hotel, subject to a perpetual roadway & pedestrian easement and other public benefits to be negotiated. 42CBRE South Half of 21st Street, Miami Beach, Florida Page 284 of 358 Sales Comparison Approach Land Value The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. - — • be WJILIM. pas, ! Y Isl... - — . Gee ...41.--4_64,,.....-- -- Law .1 - 'Ned tiro w... Tase..•mese ill I lees. w . sur / r +, .< d. Wined.leek llama Etaeake a ,�,s�bs.,RJB 6' /L05lo4 Nese* •w n...v... Il n+-ice F . o < . . , r. aerewiele iii" 1. b„ _ j _ .dam. i 1 iI c News sees 1 t 1.16J< • 4'1 Ir _ - 1.i►�►' Ya'`� ser. 1 A>w t.dse i .i sc,v Fier. $am...e.e, abed SUMMARY OF COMPARABLE LANG SALES Transaction Actual Salo Ad)u.t.d Sol. Size Size Allowable Indkated Price Price Per No. Pr.Petty Location Type Data Proposed Use Price p,k.' (Acre) (SF) Building FAR FAR Per SF SI(FAR) 1 1300 Monad Terrace Sale Jun.15 Multi-bendy residential $51,165,000 555,620,428 1.61 70,316 137.249 195 079101 040525 Miami Beach,FL 33139 condominium 2 601-685 Washington Avenue Sale Jun-15 Mised•use mail,residential 555,500,000 557,500,000 1.58 68,770 111,645 1.62 $836.12 5515.03 Miami Beach,FL 33139 &parking 3 5775 Collins Avenue Sale tun-16 70-Unit Condo 090,186,800 890,186,800 1 46 63,638 153,837 2 42 81,417 18 0586 25 Miami Beach,FL 33140 4 550 911.Street Seale ton-18 Motel 517,625,000 517,625,000 0 48 20,613 52,133 2.50 0844 39 5338.08 Miami Beach,FL 33139 5 304-312 Ocean oriee Sole Dec.18 Apartments-Luxury 010,000,000 510,000,000 0.27 11,650 20,400 1 75 $858.37 $490 20 mean)Bead.,FL 33139 Residential Condominiums 6 6747 Collis Avenue 5.1. Aug-19 Mimed-use residential& $38,000,000 $38,000,000 0.95 41,624 83,000 1 99 $912.93 5457.83 Miami Beach,FL 33141 /.stet condominium Subj. 100 210 Sheet --- --- High density,mis.d-us. --- -- 0.15 6,736 13,473 200 -- -- Miami Beach,Florida resid.rnial,resod hotel 5 retail 050$ 'Adju.ed sod pee for ash e9.^'alecny M,d/.r d..dopnmw,l cods.4...applicable) Compiled by CBRE The sales utilized represent the best data available for comparison with the subject and were selected from the greater Miami Beach submarket including comparable, high density residential 43 CBRE South Half of 21st Street, Miami Beach, Florida Page 285 of 358 Sales Comparison Approach communities with Biscayne Bay and Atlantic Ocean frontage. These sales were chosen based eastern in-fill locations, size, density/FAR and highest & best use. It should also be noted, we have considered adjustments for market conditions, frontage/location and zoning/density assuming the subject parcel takes on the highest & best use characteristics of the adjacent Seagull Hotel site, while excluding any adjustments for size and topography/site conditions. DISCUSSION/ANALYSIS OF LAND SALES We have considered similarities and differences for each of the comparable land sales in direct comparison to the subject site, as if vacant and available to be put to its highest & best use. We have adjusted the comparable sales for differences in favorable financing terms, conditions of sale, i.e. seller motivations, distress and/or assemblage premiums, market conditions (time), size/value, shape/configuration, corner influence, frontage/access, topography/site conditions, location and zoning/density when compared to the subject property. Land Sale One This is the assembled sale of 15 individual parcels/ownerships for the proposed 59-unit Monad Terrace Condominium property located at 1300-1375 Monad Terrace in Miami Beach, Florida. The property will consist of two, 14-story condominium buildings are situated on a 1 .61-acre site with a total gross building area of 336,356-SF including structured parking (75,000-SF), net sellable area of 137,249-SF plus 124,107-SF of common areas & amenities. The construction commenced in 2017 and were completed in 2019 with a 17-month construction period. The project is considered to be Class A+ based on Biscayne Bay frontage, Miami Beach address, common area amenities and quality of finishes. The assembled and recorded price was $51,165,000; however, there was a $4,455,428 assignment fee, indicating a total purchase price of $55,620,428 or $942,719/unit. We have adjusted Land Sale 1 upwards for improving market conditions (time) between the sale transaction date and the effective date of this appraisal. We have also adjusted Land Sale 1 upwards for inferior Biscayne Bay view versus the subject Atlantic Ocean view amenity. Land Sale Two This comparable land sale is improved with seven (7) existing 1 & 2 story retail store buildings fronting Washington Avenue between 6th Street and 7th Street in the Flamingo Park Historic District on Miami Beach that were owned or were "in contract" to Washington Squared, LLC, as part of an assemblage for mixed-use redevelopment for a total purchase price of $40,210,436, including lease buyouts, exiting debt & real estate commission obligations to the buyer. The assembled site area totals 68,770 square feet of medium intensity zoned land area that is improved with approximately 63,601 square feet of obsolete retail store building area dating to 1934, 1936 & 1948. The proposed redevelopment is conceptually site planned for 55,120 square feet of ground floor retail, plus 66-residential condominium units with 56,525 square feet 44 CBRE South Half of 21st Street, Miami Beach, Florida Page 286 of 358 Sales Comparison Approach or an average of 856-SF of living area per unit in a 9-story tower and 2-levels of structured parking with 240 spaces. In addition, there are several other redevelopment scenario options including a potential hotel tower instead of the residential condominium units. The majority of the contracts, excluding 619-627 Washington Avenue, all closed simultaneously in the third week of June 2015. In addition to the assemblage purchase price, the buyer/investor, Washington Squared, LLC was able to negotiate & execute a membership interest purchase & sale to IC 601 Washington LLC, dated May 27, 2015. The forward purchase price is $55,500,000 for a 96.5% interest in a joint venture agreement between the seller & purchaser. The seller retains a 3.5% interest in the joint venture valued at $2,000,000, for a total purchase price valued at $57,500,000 for 100% interest in the joint venture partnership. Part of the assemblage strategy was the Washington Avenue Vision and Master Plan being developed with a Washington Avenue Blue Ribbon Panel (WABRP) that was recommending to increase building height restrictions. The WABRP was recommending a FAR as high as 2.75, subject to municipal government approvals, versus the current zoning of CD-2, Commercial, Medium Intensity District permits a maximum floor area ratio (FAR) of 1.50, plus Code Section 142-307(d) 2.0 FAR where more than 25% of the building is used for residential or hotel units. We have adjusted Land Sale 2 downwards for conditions of sale, i.e. buyer/developer premium for a multiple parcel assemblage, and upwards for improving market conditions (time) between the sale transaction date and the effective date of this appraisal. We also adjusted Land Sale 2 upwards for inferior commercial road frontage versus the subject Atlantic Ocean view amenity. Land Sale Three This is the sale of the former Marlborough House located along the east side of Collins Avenue, south of 63rd Street, in Miami Beach, Miami-Dade County, Florida. The Marlborough House is a 13-story condominium with 110 units and structured parking built in 1963 with a total of 113,083-SF of residential area. However, the improvements are physically & functionally obsolete given the high value of ocean front land on Miami Beach. The buyer, led by broker Edgardo Defortuna of Fortune International Group assembled each individual unit and purchased 100% of the units for a total considerarion of $90,186,800 ($472.40/SF of building area, $1,417.18/SF of land area and $1,288,383/unit). The site is zone RM-3, which has a Floor Area Ratio (FAR) of 3.0, which indicates a total allowable building area of 190,914 SF, exclusive of garage area. The buyer dissolved the condominium on July 8, 2016. Subsequent to the sale, the property was approved with an 18-story luxury condominium building with 89 units, with some units being combined, decreasing the number of units to 70. The development, 57 Ocean will have a total net sellable area of 153,837 SF, a subterranean parking garage with 33,486 SF, and a total allowable building area of 190,910 SF (exclusive of the garage area). The development is scheduled to be completed by December 2021. 45 CBRE South Half of 21st Street, Miami Beach, Florida Page 287 of 358 Sales Comparison Approach We have adjusted Land Sale 3 downwards for conditions of sale, i.e. buyer/developer premium for a multiple condominium unit assemblage & collapse, and upwards for improving market conditions (time) between the sale transaction date and the effective date of this appraisal. Land Sale Four This comparable land sale is the former Oceanside Extended Care long-term care nursing facility that was vacant and broker listed by Cushman & Wakefield as a redevelopment opportunity. The existing improvements were built in 1966 square feet with 6-levels previously operated as a 196 bed, long-term care nursing facility. The property was zoned HD, Hospital District, which allows for medical, professional office and hospital uses. The buyer/developer was seeking & received approvals for rezoning to CD-2, Commercial Median Intensity District, which is consistent with the zoning of both abutting properties. CD-2 zoning allows for multifamily, short-term rental or hotel use. The site area is 20,873 square feet and includes 24 ground level parking spaces. The property was in foreclosure with the U.S. District Court judge approving the sale. The buyer/developer co-owns the Clinton Hotel and the Red South Beach Hotel on Miami Beach and acquired the property for conversion to hotel. The seller was co-owned by Philip Esformes, who was a defendant in a $1 billion Medicare fraud and money laundering case and the Oceanside Extended Care facility was shut down as a result of the indictment. The rezoning is intended to allow the existing 88-rooms to be converted to 110 hotel rooms averaging 250-SF for micro hotel rooms. In addition, the facade would be renovated, the hotel lobby would be built on the south end of the property plus a 20-seat cafe would be added on the first floor and a rooftop pool deck with a small cafe would be created. The 24 surface parking spaces would become valet only. The rezoning approval also required the Miami Beach's historic preservation board and planning board approval followed by two public hearings at the city commission. The approval process included a covenant limiting food & beverage, loud music, etc. Any future change of use on the property must be approved by the Flamingo Park Neighborhood Association with 75% of all owners of property located along Pennsylvania Avenue between 8th and 9th Street. The ground floor café operations would close at 11 pm and the roof top café at midnight under the agreement and in order to be compatible with the residential neighbors. We also adjusted Land Sale 4 upwards for conditions of sale, i.e. distressed court approved foreclosure sale transaction and upwards for improving market conditions (time) between the sale transaction date and the effective date of this appraisal. We have also adjusted Land Sale 4 upwards for inferior street (non-waterfront) frontage versus the subject property Atlantic Ocean view amenity. Land Sale Five This comparable land sale comprises two lots fronting the northwest corner of Ocean Drive & 3rd Street in Miami Beach, Florida 33139. The property was broker listed at $10,500,000 and sold for $10,000,000 in an "all cash" transaction. The property is zoned RPS-3, Residential Performance Standard, Medium-High Density which allows for residential and hotel type 46 CBRE South Half of 21st Street, Miami Beach, Florida Page 288 of 358 Sales Comparison Approach development. According to the buyer/developer, a 4-story, 32,750-SF luxury residential condominium development with common areas and balcony/terraces, of which approximately 20,400-SF will be livable area. The site was delivered clear & level. However, there was a 3- story apartment building containing 8,382 square feet previously on-site. The apartment building property was classified as "Contributing" (Historic) in the Miami Beach Historic Properties Database and the location is within the Ocean Beach Historical District. We also adjusted Land Sale 5 upwards for improving market conditions (time) between the sale transaction date and the effective date of this appraisal. We have also adjusted Land Sale 5 upwards for inferior Atlantic Ocean overlook view from the west side of Ocean Drive in comparison to the subject property Atlantic Ocean view amenity. Land Sale Six This comparable land sale is the last vacant oceanfront site located in the North Beach Resort Local Historic District in Miami Beach, Miami-Dade County, Florida. This location lies between the Deauville Hotel (dark) to the south and The Sterling condominium to the north. The sale transaction was reported to be an "off market" negotiation whereby the selling broker kept approaching the owner/seller. The seller is the American Da Tang China City Construction Company (CCCC) who previously acquired the site in October 2015 for $38,500,000 from The Peebles Corporation and Peebles paid $4,600,000 in a post-foreclosure acquisition in October 2010. The sale transaction was facilitated with a short term, $10,000,000 purchase money mortgage in favor of the seller. The buyer is a hotel developer/operator who is planning an 11- story, 209-room hotel and 104-seat restaurant/bar with 83,000-SF of floor area, subject to Historic Preservation Board and Miami Beach municipal approval process. We adjusted Land Sale 6 upwards for inferior location in the North Beach submarket versus the subject South Beach submarket location. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. 47CBRE South Half of 21st Street, Miami Beach, Florida Page 289 of 358 Sales Comparison Approach LAND SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 5 6 Subject Transaction Type Sale Sole Sale Sale Sale Sale --- Transaction Date Jun-15 Jun-15 Jun-16 Jan-18 Dec-18 Aug-19 --- Proposed Use Multi-family Mixed-use retail, 70-Unit Condo Hotel Residential Mixed-use High density, residential residential& condominium residential& mixed-use condominium parking hotel residential,resort condominium I hotel&retail uses Actual Sale Price $51,165,000 $55,500,000 $90,186,800 $17,625,000 $10,000,000 $38,000,000 --- Adjusted Sale Price' $55,620,428 557,500,000 $90,186,800 $17,625,000 $10,000,000 $38,000,000 --- Size(Acres) 1.61 1.58 1.46 0.48 0.27 0.95 0.15 Size(SF) 70,316 68,770 63,638 20,873 11,650 41,624 6,736 Allowable Bldg.Area(SF) 137,249 111,645 153,837 52,133 20,400 83,000 13,473.00 Indicated FAR 1.95 1.62 2.42 2.50 1.75 1.99 2.00 Price Per SF $791.01 $836.12 $1,417.18 $844.39 $858.37 $912.93 --- Price Per Bldg.Area $405.25 $515.03 $586.25 $338.08 $490.20 $457.83 --- Price(S PSF) $791.01 $836.12 $1,417.18 S844.39 $858.37 $912.93 Property Rights Conveyed 0% 0% 0% 0% 0% 0% Financing Terms' 0% 0% 0% 0% 0% 0% Conditions of Sale 0% -25% -25% 10% 0% 0% Market Conditions(Time) 25% 25% 20% 10% 5% 0% Subtotal $988.76 $783.86 $1,275.46 $1,021.71 $901.29 $912.93 Size 0% 0% 0% 0% 0% 0% Shape 0% 0% 0% 0% 0% 0% Corner 0% 0% 0% 0% 0% 0% Frontage&View Amenity 10% 25% 0% 25% 10% 0% Topography 0% 0% 0% 0% 0% 0% Location 0% 0% 0% 0% 0% 10% Zoning/Density 0% 0% 0% 0% 0% 0% Utilities 0% 0% 0% 0% 0% 0% Highest&Best Use 0% 0% 0% 0% 0% 0% Total Other Adjustments 10% 25% 0% 25% 10% 10% Value Indication PSF of Site $1,087.64 $979.83 $1,275.46 $1,277.14 $991.42 $1,004.22 Value Indication PSF of FAR $557.22 $603.54 $527.62 $511.34 $566.18 5503.61 Absolute Adjustment 35% 75% 45% 45% 15% 10% Adjusted sole price for cash equivalency and/or development costs(where applicable) Compiled by CBRE Potential FAR/Density Adjustments After adjusting the comparable sales for economic and physical characteristics in direct comparison to the subject properly, we have considered & applied an adjustment for zoning/density/FAR in comparison to the subject proposed floor-area-ratio (FAR), as follows: FAR ADJUSTMENT GRID Indicated Adjusted Sale Subject Adjusted Sale Sale FAR Price Per FAR FAR Price Per FAR 2 1.62 $603.54 2.00 $488.87 5 1.75 $566.18 2.00 $495.40 1 1.95 $557.22 2.00 $543.29 6 1.99 $503.61 2.00 $501.09 Subject 2.00 --- --- --- 3 2.42 $527.62 2.00 $637.73 4 2.50 $511.34 2.00 $639.18 Compiled by: CBRE, Inc. 48CBRE South Half of 21st Street, Miami Beach, Florida Page 290 of 358 Sales Comparison Approach CONCLUSION The comparables sales presented produced an overall unadjusted value indicator range from $791.01 to $1,417.18 per square foot of site area; and, $338.08 to $586.25 per square foot of potential building FAR. After adjustments were applied for property rights conveyed, conditions of sale, i.e. distress, discount or assemblage premium, market conditions (time), size, corner or frontage influence, topography/site conditions, location and zoning/density when compared to the subject property, the range of value indicators was narrowed to $979.83 to $1,277.14 per square foot of site area; and, $503.61 to $603.54 per square foot of potential building FAR. The comparable sale building FAR value indicator range is narrowed further to $488.87 to $639.18 based on the FAR adjustment grid in direct comparison to the subject "as of right" zoning FAR. Based on the preceding analysis, Comparables 1, 3, 4, 5 & 6 were the most representative of the subject site, and warranted greatest consideration because of location, zoning/density & FAR, comparable highest & best uses and recent sale transaction dates. In conclusion, a price per square foot of site area and a price per square foot of potential building FAR within the overall unadjusted range and narrow adjusted range were most appropriate for valuing the subject property, calculated as follows: CONCLUDED LAND VALUE $ PSF of Site Site SF Total $1,000.00 x 6,736 SF = $6,736,280 $1,200.00 x 6,736 SF = $8,083,536 $ PSF of FAR As of Right FAR Total $500.00 x 13,473 SF = $6,736,280 $600.00 x 13,473 SF = $8,083,536 Indicated Value: $7,400,000 (Rounded $ PSF of Site) $1,098.53 (Rounded $ PSF of FAR) $549.26 Compiled by CBRE 49 CBRE South Half of 21st Street, Miami Beach, Florida Page 291 of 358 Assumptions and Limiting Conditions Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report(the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, ore structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of on engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents,or other legislative or administrative authority from any local, state, nor national government or private entity or orgonization have been or can be readily obtained or renewed for any use on which the Report is based. (viii)The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. 50CBRE South Half of 21st Street, Miami Beach, Florida Page 292 of 358 Assumptions and Limiting Conditions (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither under-taken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, nurnerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets,and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection,survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report,except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold,or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 51CBRE South Half of 21st Street, Miami Beach, Florida Page 293 of 358 Assumptions and Limiting Conditions 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 52 CBRE South Half of 21st Street, Miami Beach, Florida Page 294 of 358 Addenda ADDENDA Page 295 of 358 Addenda Addendum A LAND SALE DATA SHEETS Page 296 of 358 ale Land - Multi Unit Residential No. 1 Property Name Monad Terrace Address 1300 Monad Terraceow' - Miami Beach, FL 33139 -s _ - United States r ��j, �� I •s. Government Tax Agency Miami-Dade +F (�=:ae ,, 1St CD• Govt./Tax ID 02-3233-010-0010+ MIMI Site/Government Regulations ` g Acres Square feet i r Land Area Net 1.614 70,316 s f '- .a, t1 _ Land Area Gross 1.614 70,316 1111 _ . Site Development Status Platted Shape Irregular Topography Level,At Street Grade Utilities All available Maximum FAR 1.95 Min Land to Bldg Ratio 0.51:1 Maximum Density 36.55 per ac Frontage Distance/Street 150 ft West Avenue Frontage Distance/Street 161 ft Biscayne Bay General Plan N/A Specific Plan N/A Zoning RM-3,Residential Multifamily,High Intensity District Entitlement Status Fully Entitled/Planning Permissions Recorded Buyer Monad Terrace Property Owner,LLC Marketing Time N/A True Buyer ADS Development Group Buyer Type Developer Recorded Seller Various Seller Type Private Investor True Seller N/A Primary Verification Buyer/Developer,Contracts& Appraisal on-file Interest Transferred Fee Simple/Freehold Type Sale Current Use N/A Date 6/11/2015 Proposed Use N/A Sale Price $51,165,000 Listing Broker Off-market assemblage Financing Cash to Seller Selling Broker None Cash Equivalent $51,165,000 Doc# Various Capital Adjustment SO Adjusted Price $55,620,428 Transaction Date Transaction Type ftres Seller Price Price/ac and/sf 06/2015 Sale Monad Terrace Property Various $51,165,000 $34,456,962/$791.01 Owner,LLC Page 297 of 358 CBRE ale Land - Multi Unit Residential No. 1 's __ .�'"� t}x ' - nfi }.,.` 'x€' 3" ,' ,•' S'�'};_; r' ,•:[s 1 .7x1 $791.01 /sf $942,719 /Unit $34,456,961.96 /ac $942,719 /Allowable Bldg. Units $405.25 /Building Area No information recorded 15th St This is the assembled sale of 15 individual parcels/ownerships for the proposed 59-unit Monad Terrace Condominium property located at 1300-1375 Monad Terrace in Miami Beach,Florida.The property will W E S Tlv E N U E consist of two, 14-story condominium buildings are situated on a 1.61-acre site with a total gross building area of 336,356-SF including structured parking(75,000-SF),net sellable area of 137,249-SF plus 124,107-SF of common areas&amenities.The construction commenced in 2017 and were completed in 2019 with a 17-month construction period. The project is considered to be Class A+ based 700 e v on Biscayne Bay frontage,Miami Beach address,common area amenities and quality of finishes. The Map data 172021 Google assembled and recorded price was$51,165,000; however,there was a$4,455,428 assignment fee, indicating a total purchase price of$55,620,428 or$942,719/unit. Page 298 of 358 CBRE A. • le Land - Mixed-Use No. Property Name 6th&Washington Address 601-685 Washington Avenue ., - 1' Miami Beach, FL 33139 United StatesT,., ey Government Tax Agency Miami-Dade7.,„%-it ` Govt./Tax ID N/A 2;. Site/Government Regulations - - =. ' ' Acres Square feet 'it I:4 -- .� , a y Land Area Net 1,579 68,770 ''_7 , -. Land Area Gross 1.579 68,770 Site Development Status Finished Shape Rectangular Topography Other(See Comments) Utilities Available to site Maximum FAR 1.62 Min Land to Bldg Ratio 0.62:1 Maximum Density 41.81 per ac Frontage Distance/Street 549 ft Washington Ave Frontage Distance/Street 133 ft 6th Street Frontage Distance/Street 130 ft 7th Street Frontage Distance/Street 519 ft Collins Court-Alley General Plan Mixed-use retail/residential&parking Specific Plan Mixed-use retail/residential&parking Zoning CD-2, Commercial (See Comments) Entitlement Status Other(See Comments) Sale Summary Recorded Buyer IC 601 Washington, LLC Marketing Time N/A True Buyer Eric Birnbaum Buyer Type Developer Recorded Seller Washington Squared, LLC Seller Type Private Investor True Seller Andrew Joblon,Managing Member Primary Verification Contract&Appraisal on-file Interest Transferred Fee Simple/Freehold Type Sale Current Use Obsolete strip retail Date 6/23/2015 Proposed Use Mixed-use retail, residential&parking Sale Price $55,500,000 Listing Broker N/A Financing Cash to Seller Selling Broker N/A Cash Equivalent $55,500,000 Doc# See Comments Capital Adjustment $2,000,000 Adjusted Price $57,500,000 Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and/sf O6 2015 Sale IC 601 Washington, LLC Washington Squared, $55,500,000 $36,422,373/$836.12 LLC Page 299 of 358 CBRE ale Land - Mixed-Use No. a Units of Comparison $836.12 /sf $871,212 /Unit $36,422,372.84 /ac 5871,212 /Allowable Bldg. Units $515.03 /Building Area Financial No information recorded Map& Comments This comparable land sale is improved with seven (7)existing 1 &2 story retail store buildings fronting Washington Avenue between 6th Street and 7th Street in the Flamingo Park Historic District on Miami Beach that were owned or were"in contract"to Washington Squared, LLC,as part of an assemblage for mixed-use redevelopment for a total purchase price of$40,210,436, including lease buyouts, exiting debt& real estate commission obligations to the buyer. The assembled site area totals 68,770 square Google feet of medium intensity zoned land area that is improved with approximately 63,601 square feet of Google ^Map data 2021 Google obsolete retail store building area dating to 1934, 1936& 1948. The proposed redevelopment is conceptually site planned for 55,120 square feet of ground floor retail, plus 66-residential condominium units with 56,525 square feet or an average of 856-SF of living area per unit in a 9-story tower and 2- levels of structured parking with 240 spaces. In addition,there are several other redevelopment scenario options including a potential hotel tower instead of the residential condominium units. The majority of the contracts, excluding 619-627 Washington Avenue, all closed simultaneously in the third week of June 2015. In addition to the assemblage purchase price,the buyer/investor,Washington Squared, LLC was able to negotiate&execute a membership interest purchase&sale to IC 601 Washington LLC,dated May 27,2015. The forward purchase price is $55,500,000 for a 96.5%interest in a joint venture agreement between the seller&purchaser. The seller retains a 3.5%interest in the joint venture valued at $2,000,000,for a total purchase price valued at$57,500,000 for 100%interest in the joint venture partnership. Part of the assemblage strategy was the Washington Avenue Vision and Master Plan being developed with a Washington Avenue Blue Ribbon Panel (WABRP)that was recommending to increase building height restrictions. The WABRP was recommending a FAR as high as 2.75,subject to municipal government approvals,versus the current zoning of CD-2, Commercial,Medium Intensity District permits a maximum floor area ratio(FAR) of 1.50, plus Code Section 142-307(d) 2.0 FAR where more than 25% of the building is used for residential or hotel units. Page 300 of 358 CBRE ale Land - Spec-Holding No. Property Name 57 Ocean Address 5775 Collins Avenue _ s Miami Beach,FL 33140 United States Government Tax Agency Miami-Dade ` Govt./Tax ID 02-3211-016-0040 thr 1 1 10 -4 Cl Site/Government Regulations `j k , C--_•- r Acres Square feet • ! • rt Land Area Net 1.461 63,638 Land Area Gross N/A N/A Site Development Status Finished Shape Rectangular Topography Level,At Street Grade Utilities All available to site Maximum FAR 3.00 Min Land to Bldg Ratio 0.33:1 Maximum Density 47.92 per ac Frontage Distance/Street 225 ft Collins Ave Frontage Distance/Street 225 ft Atlantic Ocean/beach General Plan Multi-family residential Specific Plan Multi-family residential condominium tower Zoning RM-3,Residential Multifamily,High Intensity Entitlement Status N/A Sale Summary Recorded Buyer Miami Beach Associates,LLC Marketing Time N/A True Buyer Edgardo Defortuna Buyer Type Developer Recorded Seller Multiple Seller Type End User True Seller N/A Primary Verification Buyer's representative-Fortune International Group Interest Transferred Fee Simple/Freehold Type Sale Current Use Condo Date 6/27/2016 Proposed Use 70-Unit Condo Sale Price $90,186,800 Listing Broker N/A Financing Cash to Seller Selling Broker N/A Cash Equivalent $90,186,800 Doc# N/A Capital Adjustment $0 Adjusted Price $90,186,800 Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and/sf Oo 2016 Solo Miami Beach Associates, Multiple $90,186,800 $61,733,726/$1,417.18 LLC Page 301 of 358 CBRE ale Land - Spec-Holding No. 3 4001400- a { ,^e a" _ sem- n $1,417.18 /sf $1,288,383 /Unit $61,733,725.79 /ac $1,288,383 /Allowable Bldg. Units $472.40 /Building Area No information recorded This is the sale of the former Marlborough House located along the east side of Collins Avenue,south of 63rd Street,in Miami Beach,Miami-Dade County,Florida. The Marlborough House is a 13-story IPcondominium with 110 units and structured parking built in 1963 with a total of 113,083-SF of residential area. However,the improvements are physically&functionally obsolete given the high value of ocean front lond on Miami Beach. The buyer,led by broker Edgardo Defortuna of Fortune International Group assembled each individual unit and purchased 100%of the units for a total Google Map data(4':2021 Good consideration of$90,186,800($472.40/SF of building area,$1,417.18/SF of land area and $1,288,383/unit). The site is zone RM-3,which has a Floor Area Ratio(FAR)of 3.0,which indicates a total allowable building area of 190,914 SF,exclusive of garage area. The buyer dissolved the condominium on July 8,2016. Subsequent to the sale,the property was approved with an 18-story luxury condominium building with 89 units,with some units being combined,decreasing the number of units to 70. The development,57 Ocean will have a total net sellable area of 153,837 SF,o subterranean parking garage with 33,486 SF,and a total allowable building area of 190,910 SF (exclusive of the garage area). The development is scheduled to be completed by December 2021. Page 302 of 358 CBRE ale Land - Hotel / Motel No. Property Name 550 9th Street Address 550 9th Street Miami Beach,FL 33139 United States Government Tax Agency Miami-Dade t - Govt./Tax ID 02-4203-009-0100 — . a Site/Government Regulations y i ^_i Acres Square feet Land Area Net 0.479 20,873 Land Area Gross N/A N/A Site Development Status Finished Shape Rectangular Topography Level,At Street Grade Utilities In-place Maximum FAR 2.50 Min Land to Bldg Ratio 0.40:1 Maximum Density 229.55 per ac Frontage Distance/Street 125 ft 9th Street Frontage Distance/Street 189 ft Pennsylvania Avenue General Plan Multi-family residential&hotel uses Specific Plan Hotel Zoning HD,Hospital District to be Rezoned to CD-2,Commercial Median Intensity Use Entitlement Status N/A We Summary Recorded Buyer 550 Ninth, LLC Marketing Time 9 Month(s) True Buyer Simon Nemni Buyer Type Developer Recorded Seller A.D.M.E.Real Estate, LLC Seller Type Private Syndicator True Seller Philip Esformes Primary Verification Calum Weaver,Listing Agent Interest Transferred Fee Simple/Freehold Type Sale Current Use Obsolete nursing facility Date 1/31/2018 Proposed Use Hotel Sale Price $17,625,000 Listing Broker Cushman&Wakefield#954-377-0517 Financing All Cash Selling Broker N/A Cash Equivalent $17,625,000 Doc# 30863/3494 Capital Adjustment SO Adjusted Price $17,625,000 Transaction Date Transaction Type Buyer Seller price Price/ac and/sf 01/2018 Sale 550 Ninth,LLC A.D.M.E.Real Estate,LLC $17,625,000 $36,780,050/$844.39 Page 303 of 358 CBRE ale Land - Hotel / Motel No. $844.39 /sf $160,227 /Unit $36,780,050.08 /ac $160,227 /Allowable Bldg. Units $338.08 /Building Area No information recorded 9trr , This comparable land sale is the former Oceanside Extended Care long-term care nursing facility that was vacant and broker listed by Cushman&Wakefield as a redevelopment opportunity. The existing ' improvements were built in 1966 square feet with 6-levels previously operated as a 196 bed,long-term care nursing facility. The property was zoned HD,Hospital District,which allows for medical,professional office and hospital uses.The buyer/developer was seeking&received approvals for rezoning to CD-2, Commercial Median Intensity District,which is consistent with the zoning of both abutting properties. Google ^Map data 02021 Google CD-2 zoning allows for multifamily,short-term rental or hotel use.The site area is 20,873 square feet and includes 24 ground level parking spaces. The property was in foreclosure with the U.S. District Court judge approving the sale. The buyer/developer co-owns the Clinton Hotel and the Red South Beach Hotel on Miami Beach and acquired the property for conversion to hotel. The seller was co-owned by Philip Esformes,who was a defendant in a $1 billion Medicare fraud and money laundering case and the Oceanside Extended Care facility was shut down as a result of the indictment. The rezoning is intended to allow the existing 88- rooms to be converted to 110 hotel rooms averaging 250-SF for micro hotel rooms. In addition,the facade would be renovated,the hotel lobby would be built on the south end of the property plus a 20- seat cafe would be added on the first floor and a rooftop pool deck with a small cafe would be created. The 24 surface parking spaces would become valet only. The rezoning approval also required the Miami Beach's historic preservation board and planning board approval followed by two public hearings at the city commission. The approval process included a covenant limiting food&beverage,loud music,etc. Any future change of use on the property must be approved by the Flamingo Park Neighborhood Association with 75%of all owners of property located along Pennsylvania Avenue between 8th and 9th Street.The ground floor café operations would close at 11 pm and the roof top café at midnight under the agreement and in order to be compatible with the residential neighbors. Page 304 of 358 CBRE ale Land - Multi Unit Residential No. 5 Property Name Ocean Drive Development Site ! Address 304-312 Ocean Drive aE- id ; ! - f. Miami Beach, FL 33139 ----- United States ., Government Tax Agency Miami-Dade e r+/. f 7 Govt./Tax ID 02-4203-003-0510&0500 - r " Site/Government Regulations ! rt._ Acres Square feet ` ,* Land Area Net 0.267 11,650 '`- . ` Land Area Gross 0.267 11,650r+ Site Development Status Finished - f, i Shape Rectangular Topography Level,At Street Grade Utilities All Maximum FAR 1.75 Min Land to Bldg Ratio 0.57:1 Maximum Density 18.70 per ac Frontage Distance/Street 100 ft Ocean Drive Frontage Distance/Street 115 ft 3rd Street General Plan Boutique hotel and-or residential condominium Specific Plan Residential condominium Zoning RPS-3 Entitlement Status N/A Sale Summary Recorded Buyer 312 Ocean Park,LLC Marketing Time 9 Month(s) True Buyer Marcelo Kingston&Ricardo Genton Peixoto Buyer Type Developer Recorded Seller Sea Spray Development, LLC Seller Type Private Investor True Seller Yair Wolf Primary Verification Buyer,Development Plans on File& Public Records Interest Transferred Fee Simple/Freehold Type Sale Current Use See Comments Date 12/14/2018 Proposed Use Apartments-Luxury Residential Condominiums Sale Price $10,000,000 Listing Broker Josh Thomas,Marcus&Millichap$954-245- Financing All Cash 3492 Selling Broker N/A Cosh Equivalent $10,000,000 Doc# 31262/4607-4610 Capital Adjustment SO Adjusted Price $10,000,000 Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and/sf 12/2018 Sale 312 Ocean Park,LLC Sea Spray Development, $10,000,000 $37,397,158/$858.37 LLC Page 305 of 358 CBRE ale Land - Multi Unit Residential No. 5$858.37 /sf N/A /Unit $37,397,157.82 /ac $2,000,000 /Allowable Bldg. Units $490.20 /Building Area No information recorded # ilk This comparable land sale comprises two lots fronting the northwest corner of Ocean Drive&3rd Street in Miami Beach,Florida 33139. The property was broker listed at$10,500,000 and sold for $10,000,000 in an"all cash"transaction. The property is zoned RPS-3,Residential Performance Standard,Medium-High Density which allows for residential and hotel type development. According to the buyer/developer,a 4-story,32,750-SF luxury residential condominium development with common areas and balcony/terraces,of which approximately 20,400-SF will be livable area. The site was Goog ledelivered clear&level. However,there was a 3-story apartment building containing 8,382 square feet Map data'Z'2021 Googte previously on-site.The apartment buildingroe was classified as"Contributing"(Historic) in the P Y PP property � Miami Beach Historic Properties Database and the location is within the Ocean Beach Historical District. Page 306 of 358 CBRE ale Land - Hotel / Motel No. • Property Name Urbanica,The Beach 6747 Collins Avenue i Address " . Miami Beach,FL 33141 0 • � United States s.i4 k b x, ,• Government Tax Agency N/A .Ili,L. Govt./Tax ID Multiple iiiir%PIS 44) - •Nildi . Site/Governmentnt Tax Agenc • NI Acres Square feet 4, J Land Area Net 0.950 41,624 r ek r Land Area Gross 0.950 41,624 • •!*ii i Site Development Status Finished TA t, _ Shape Rectangular " Topography Level,At Street Grade Utilities All Available Maximum FAR 1.99 Min Land to Bldg Ratio 0.50:1 Maximum Density N/A Frontage Distance/Street 125 ft Collins Avenue Frontage Distance/Street 125 ft Atlantic Ocean General Plan High density,mixed-use residential and-or hotel Specific Plan Hotel Zoning RM-3,Residential Multi-Family, High Intensity Entitlement Status N/A Sale Summary Recorded Buyer BTL Investments LLC Marketing Time N/A True Buyer Carlos M. Porchetto, Urbanica Management Buyer Type End User Recorded Seller Golden Cove Miami Beach, LLC(f/k/a CCCC Seller Type Developer Miami Beach LLC) True Seller Sze Wai Suen Primary Verification Stefano Santor,Buyer's Broker#786- 747-4686 Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant Land Date 8/26/2019 Proposed Use Mixed-use residential&hotel condominium Sale Price $38,000,000 Listing Broker Off-market transaction Financing Other(See Comments) Selling Broker APEX Capital Realty Cash Equivalent $38,000,000 Doc# 31594/2456 Capital Adjustment SO Adjusted Price $38,000,000 Transaction Summary plus Five-Year CBRE View History Transaction Date Transaction Type Buyer Seller Price Price/ac and ,sf 08/2019 Sa'e BTL Investments LLC Golden Cove Miami $38,000,000 $40,000,000/S912.93 Beach,LLC(f/k/a CCCC Miami Beach LLC) Page 307 of 358 CBRE • le Land - Hotel / Motel No. • linalls ofC $912.93 /sf $190,000 /Unit $40,000,000.00 /ac N/A /Allowable Bldg. Units $457.83 /Building Area No information recorded 1111.11111111111111111111 This comparable land sale is the last vacant oceanfront site located in the North Beach Resort Local Historic District in Miami Beach,Miami-Dade County,Florida. This location lies between the Deauville ET Hotel (dark)to the south and The Sterling condominium to the north. The sale transaction was reported to be an"off market"negotiation whereby the selling broker kept approaching the owner/seller. The seller is the American Do Tang China City Construction Company(CCCC)who previously acquired the site in October 2015 for$38,500,000 from The Peebles Corporation and Peebles paid$4,600,000 in a Google map data Z.2021 Gocce post foreclosure acquisition in October 2010. The sale transaction was facilitated with a short term, $10,000,000 purchase money mortgage in favor of the seller. The buyer is a hotel developer/operator who is planning an 11-story,209-room hotel and 104-seat restaurant/bar with 83,000-SF of floor area, subject to Historic Preservation Board and Miami Beach municipal approval process. Page 308 of 358 CBRE Addenda Addendum B LEGAL DESCRIPTION Page 309 of 358 EXHIBIT "A" LEGAL DESCRIPTION: RIGHT OF WAY VACATION FOR A PORTION OF 21st STREET A portion of 21st Street lying ;n Section 34, Township 53 South, Range 42 East of AMENDED MAP OF THE OCEAN FRONT PROPERTY OF THE MIAMI BEACH IMPROVEMENT COMPANY, as recorded in Plat Book 5, Pages 7 and 8, of the Public Records of Miami-Dade County, Florida, being adjacent to Lots 1, 3 and 5 of Block A and the Fcstery projection thereof and being more particularly described as follows: Begin at the Northwest corner of said Lot 5 of Block A; thence S 70'02'49" E along the South right of way line of said 21st Street also being the North line of said Block A and the Easterly projection thereof, for 269.46 feet; thence N 19'57'11" E for 25.00 feet a point on the Centerline of 21st Street; thence N 7702'49" W along said center line of said 21st Street for 269.46 feet; thence S 19'57'11" W along the Northerly projection of the West line of said Lot 5 for 25.00 feet to the Point of Beginning. SURVEYOR'S NOTES: -^ s site 'es in Section 34, Township 53 South, Range 42 East, City of Miami Beach, Miami-Dade County. _ cridc. 13 ;:-•ngs hereon are referred to an assumed value of N 70'02'49" W for the North 'ine of Block A. - _ands shown hereon were not abstracted for easements and/or rights-of-way of records. - -,:s is not a "Boundary Survey" but only a graphic depiction of the description shown hereon. Dimensions shown hereon are based on Fortin, Leavy, Skiles, sketch #2007-084-NAVD. SURVEYOR'S CERTIFICATION: I hereby certify that this "Sketch of Description" was mode under my responsible charge on November 2.5, 2020, and meets the app':c,=e codes as set forth in the Florida Administrative Code, pursuant to Section 472.027, Florida Statutes. "Not valid without the signature and original raised seal or a digital signature of the Florida Licensed Surveyor and Mapper shown below" FORTIN, LEAVY, SKILES, INC., LB3653 By: Daniel C. Fortin ,;r., For ^e Firm Surveyor and Mapper, LS6435 State of Florida. • Down By DWF (LEGAL DESCRIPTION, NOTES& CERTIFICATION' 1 ,X23/20 �— Scale Cad No. 201042 F ORTIN, LEAVY, S KILES, INC. 1"=50' Ref.Dwg. Job.No. 201042 2007-084—NAV:' CONSULTING ENGINEERS, SURVEYORS &MAPPERS FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER:00003653 Dwg.No. 1020-092 180 Northeast 168th Street/North Miami Beach,Florida 33162 - - Plotted. 11/23/20 Phone 305-653-4493/Fa me Sheet 1 of 3 J ) � �aa� I��t�ey.�m ; EXHIBIT "A" \ iU 1 Q W W CITY PARK 1 I CO PER PLAT BOOK 5.PAGE 7 I 0 L I Q 21st STREET 5 S 19°5711"w r- 180.00 N' 25.00' N 70°02'49"W �.CFNTERLINE 269.46' (PARK AVENUE-PLAT) --- D,:.. / (PUBLIC RIGHT OF WAY) N1 �i� // 7 S 70°02 49"E 269.46' _30.00 POINT OF BEGINNING SOUTH LINE OF 19°5711"E NORTHWEST NORTHERLY 21st STREET CORNER OF LOT 5 PROJECTION OF 1 i NORTH LINE OF 25.00 UJ WEST LINE LOT 5 BLOCK A AND EASTERLY j PROJECTION t V _ IWa< 1 a':-° LOT 9 LOT 7 LOT 5 LOT 3 111:1 LOT 1 NOT DESIGNATED x p ( PER PLAT Q Li, �� z ot=7 pi.- J v/Q Q 1••' w Z U I AMENDED MAP OF THE OCEAN FRONT PROPERTY -EASTERLY w _,-m EXTENSION LIN v OF THE MIAMI BEACH IMPROVEMENT COMPANY OF THE -I�a - PLAT BOOK 5,PAGES7&8 — - NORTHERLY 0 - I LINE OF LOT 2 30.00,_ BLOCK A I ' LOT 1 0 LOT 8 LOT 8 LOT 4 LOT 2 NOT SUBDIVIDED 1 1 I I I ``ft oGRAPHIC SCALE 0 30 50 120 \\1\ MMINIIMMIIMMIli `\\ �,. ( IN FEET ) 1 inch = 60 ft. (Drawn By DW i- SKETCH OF DESCRIPTION 'aft 1 1/23/20 Cad.No. 201042 F ORTIN, LEAVY, S KILES, INC. Scale 1"=60' Ref.Dw . g 20"042 2007-084-V. CONSULTING ENGINEERS, SURVEYORS &MAPPERS FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER:00003653 Dwg.No. 1 020-092 180 Northeast 168th Street/North Miami Beach,Florida 33162 �� /23/20 J \__ Phone 305-653-4493/Fa }11:#535aimai1 fls@flssurvey.com �S� 2 of 3 J EXHIBIT "A" STREET VACATION W Z CITY PARK W Q LL1 21st STREET Q U 9 7 5 i3 H 1 O SEA(3UL OTEL __\ II , D 10 8 6 4 2 20th STREET O 0 i 4- )y L_ " N l y.c� Ne v u. 1L Drawn 13y DWF LOCATION SKETCH '— 11/23/20 Cad N 201042 I I FORTIN LEAVY, S KILES INC. sale NTS Ref.Dwg. 2007-084-NAVD CONSULTING ENGINEERS, SURVEYORS&MAPPERS Job.No. 201042 FLORIDA CERTIFICATE OF AUTHORIZATION NUMBER:00003653 Dwg.No. 1020-092 I 180 Northeast 168th Street/North Miami Beach,Florida 33162 � P1otted: 11/23/20 , Phone 305-653-4493/Faa ¢35�maii fls@flssurvey.com Sheet 3 3 / Addenda Addendum C CLIENT CONTRACT INFORMATION Page 313 of 358 VALUATION & ADVISORY SERVICES CBRE Proposal and Contract for Services CBRE,'nc. 777 Brickell Avenue,Suite#1100 Miami,FL 33131 December 22, 2020 Stuart J.Lieberman,MAI Vice President Roy Coley, MBA Director CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT 1700 Convention Center Drive Miami Beach, FL 33139 Phone: 305.673.7380 Email: RoyColey@miamibeachfl.gov RE: Assignment Agreement Right-of-Way South Half of 21" Street, 100 215'Street, Miami Beach, FL 33139 Dear Mr. Coley: We are pleased to submit this proposal and our Terms and Conditions for this assignment. PROPOSAL SPECIFICATIONS Purpose: To estimate Market Value of the referenced real estate Premise: As Is Rights Appraised: Fee Simple Estate Intended Use: Internal decision making for potential sale Intended User: The intended user is CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT ("Client"), and such other parties and entities (if any) expressly recognized by CBRE as "Intended Users" (as further defined herein). Reliance: Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. Page 314 of 358 VALUATION& ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement Page 2 of 8 December 22, 2O-:2:) Scope of Inspection: The scope of the inspection will include: We will inspect the property and it will be performed by CBRE Valuations. If this expected property inspection is not possible due to unforeseen issues (such as lack of on-site personnel cooperation, physical obstructions, or appraiser/property contact health and safety concerns), the client will be promptly advised. The client may continue this assignment based on other inspection options agreed upon by CBRE and client or provide CBRE with a written notice to cancel. If CBRE determines that a credible appraisal result cannot be achieved due to inspection limitations, it will promptly provide the client with a written cancellation of this assignment. Valuation Approaches: The Sales Comparison Approach via the "across the fence" (ATF) valuation methodology. In theory, ATF is applicable when undevelopable sites with limited marketability that can be joined to an adjacent parcel and can legally assume the adjacent parcel's,highest & best use and unit value. Report Type: Standard Appraisal Report Appraisal Standards: USPAP 2020-2021 Appraisal Fee: $3,500. If cancelled by either party before completion, the fee will be based on CBRE's hourly rates for time expended; plus actual expenses. Expenses: Fee includes all associated expenses. Retainer: A retainer is not required. Payment Terms: Final payment is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. The full appraisal fee is considered earned upon 'delivery of the draft report. Delivery Instructions: CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report. An Adobe PDF file via email will be delivered to RoyCofey@miamibeachfl.gov. The client has requested 3 bound final copy (ies). Delivery Schedule: Preliminary Value: Not required Draft Report: Upon client's request Final Report: 15 business days/ 3-weeks after start date CBRE Page 315 of 358 VALUATION &ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement Page 3 of 8 December 22, 2020 Start Date: The appraisal process will start upon receipt of your signed agreement and property specific data. Acceptance Date: These specifications are subject to modification if this proposal is not accepted within 20 business days from the date of this letter. Notification of Market Volatility: The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organization as a global pandemic on the 11th March 2020, is causing heightened uncertainty in both local and global market conditions. Our valuation will be based on the information available to us at the date of valuation. You acknowledge that our reports may include clauses highlighting heightened uncertainty if appropriate, and we recommend our valuation is kept under frequent review. Both governments and companies are experiencing travel restrictions, quarantine and additional safety measures in response to the COVID-19 pandemic. If, at any point, our ability to deliver the services under this contract is further restricted due to the pandemic, we will inform you within a reasonable timeframe and work with you on how to proceed. Whilst we will endeavor to meet the required timeframe for delivery, you acknowledge any Government or company-imposed restrictions due to the virus may impede our ability to meet the timeframe and/or deliverables of this engagement, and delays may follow. Any delays or inability to deliver on this basis would not constitute a failure to meet the terms of this engagement. When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties hereto. We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us. Sincerely, CBRE, Inc. Valuation & Advisory Services Stuart J. Lieberman, MAI Vice President As Agent for CBRE, Inc. T 305.381.6472 stuart.lieberman@cbre.com u,.., CBRE Page 316 of 358 VALUATt-)N!i ADVIS'tRY SERVICES K AN O-BEACH ,A.ssiTyrtept A3ceemc tt Rage 6f9 Api4 9. 2O2 TERMS AND CONDITIONS I. The Terms ana Conditions rerein ore port of on agreement for appraisal services ,the "Agreement' ) between CBRE, inc. (the "Appraiser") and the client signing 'his Agreement, and for whom the appraisal services will be performed (the "Client"). and shall be deemed a port of such Agreement as though set forth in full therein. The Agreement shot be governed by the lows of the state where the appraisal office is located for the Appraiser executing this Agreement. 2. Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the appraisal fee and preparation of on appraisal report (the "Appraisal Report. or the "report") are not contingent upon any predetermined value Or on an action or event resulting from the analyses, opinions, conclusions, or use of the Appraisal Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. if a draft report is requested, the fee is Considered earned upon delivery of the draft report. It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed report. In such event, the Client is obligated only for the prorated snare of the fee based upon the work completed and expenses incurred ('nctuding travel expenses to and from the lob site),with a minimum charge of$500. Additional copies of the Appra sal Reports ore availab'e at a cost of$250 per original color copy and $100 per photocopy (black and white),plus shipping fees of$30 per report 3. If Appraiser is subpoenaed or ordered to give testimony, produce documents or irformotion, or otherwise required or requested by Clent or a third party to participate in meetings, phone calls, conferences, litigation or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the Appraiser's expertise, or the Property. Client shall pay Appraiser's additional costs and expenses, including out not limited to Appraiser's attorneys' fees, and additional time incurred by Appraiser based on Appraiser's then-prevailing hourly rates and related fees. Such charges incl..,de and pertain to. but ore not limited to, time spent in preparing for and providing court room testimony,depositions, travel time, mileage and related travel expenses,waiting time, document review and production. and preparation time (excluding preparation of the Appraisal Report). meeting participation, and Appraiser's other related commitment of time and expertise. -'ourly charges and other fees for such participation will be provided upon request. in the event Client requests additional appraisal services beyond the Scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed report has been delivered to Client of the time of such request. 4. Appraiser shall hove the right to terminate this Agreement at any time for cause effective immediately upon wrtten notice to Client or the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 5 days written notice. 5. In the event Client fails to make payments when due then, from the do:ie due unt't paid, the amount due and payable shall bear interest at the maximum rate permitted in the state where the office is located for the Appraiser executing the Agreement. to the event either party institutes legal action against 'he other to enforce its rights under this Agreement, the prevailing party snail be entitled to recover its reasonab'e attorney's fees and expenses. Each perty waves the right to a trial by jury in any action arising under this Agreement. 6. Appraiser assumes there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor, engineer, or environmental consultant for Appraiser to prepare a valid report. Client acknowledges that such additional expertise is not covered n the Appraisal fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and sole''y at Client's additional cost and expense. 7. Client acknowledges that Appraiser is being retained hereunder as on independent contractor to perform the services described herein and nothing in this Agreement shall be deemed to create any other relationship between Client and Appraiser. This engagement shall be deemed concluded and the services hereunder completed upon Appraiser's completion of oft services and tasks set forth in this Agreement and the delivery to Cient of the final Appraisal Report discussed herein. Page 317 of 358 ALUATV N 3 ADVISnRY SERVICES " 1416 4 Ria'-4f-9 9. 2020 8. All statements of fact in the report which are used as the basis of the Appraiser's analyses, opinions. and conclusions will be true and correct to Appraiser's actual knowledge and belief. Appraiser does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to Appraiser by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, APPRAISER DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY APPRAISAL REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO APPRAISER. Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be subject to the assumptions,limitations,and qualifying statements contained in the report. 9. Appraiser shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions,engineering, or other similar technical matters. The report will not constitute a survey of the Property analyzed. 10. Client shall provide Appraiser with such materials with respect to the assignment as ore requested by Appraiser and in the possession or under the control of Client. Client shall provide Appraiser with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary. 1. The data gathered in the course of the assignment (except data furnished by Ciient) and the report prepared pursuant to the Agreement are, and will remain. the property of Appraiser. With respect to data provided by Client, Appraiser snail not violate the confidential noture of the Appraiser-Client relationship by improperly disclosing any proprietary information furnished to Appraiser. Notwithstanding the foregoing, Appraiser is authorized by Client to disclose all or any portion of the report and related data as may be required by statute, government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable Appraiser to comply with the Bylaws and Regulations of such Institute as now or hereafter in effect. 12. Unless specifically noted, in preooring the Appraisal Report the Appraiser will not be cors dering the possible existence of asoestos. PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, "Hazardous Materia; on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertse of a orofessional cost estimator or contractor, If such repairs ore needed, the estimates ore to be prepared by others,at Client's discret on and direction,and ore riot covered as port of the Appraisal fee. 13. In the event Client intends to use the Appraisal Report in connection with a lox matter. Client acknowledges that Appraiser provides no warranty, representation or prediction as to the outcome of such tax matter.Client understands and acknowledges that any relevant taxing authority(whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with Client's tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes. interest. penalties or fees from Client beyond what may be suggested by the Appraisal Report.Client agrees that Appraiser shall have no responsibility or liability to Client or any other party for any such taxes.interest.penalties or fees and that Client will not seek damages or other compensation from Appraiser relating to any such taxes, interest, penalties or fees imposed or Client, or for any attorneys' fees. costs or other expenses relating to Client's tax matters. 14. Appraiser shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted against Client arising out of.based upon or resulting from Client's failure to provide accurate or complete information or documentation pertaining to an assignment ordered under or in connection with this Agreement. including Client's failure, or the failure of any of Client's agents, to provide a complete copy of the Appraisal Report to any third party. 15. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS. DIRECTORS. EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE. STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY SPECIAL. CONSEQUENTIAL. PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES,AND AGGREGATE DAMAGES IN CONNECTION WITH THiS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE Page 318 of 358 VALUAW N&ArVIS NY SERVICES A .iAM4.$EAG1st A signcteFi#-A Feel At Piaela&44-; Apil929212 FEES REQUIRED HEREUNDER)SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO APPRAISER UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10.000). THIS LIABILITY LIMITATION SHALL NOT APPLY IN THE EVENT OF A FINAL FINDING BY A COURT OF COMPETENT JURISDICTION THAT SUCH LIABILITY IS THE RESULT OF A PARTY'S FRAUD OR WILLFUL MISCONDUCT. 16. Client shall not disseminate, distribute, make availab'e or otherwise provide any Appraisa' Report prepared hereunder to any third party (including without limitation, incorporating or aeferencing the Appraisal Report , in whole or in port. in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by Appraiser os on "Intended User" of the Appraisal Report provided that either Appraiser has received an acceptable release from such third party with respect to such Appraisal Report or Client provides acceptable indemnity protections to Appraiser against any cairns resulting from the distribution of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors) using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) the extent required by statute, government regulation, legal process, or ludicial decree, including as reauired under the Public Records Lows, including,without limitation, Chapter 119, Florida statutes. in the event Appraiser consents,in writing,to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided Appraiser with complete copies of such materials and Appraiser has approved all such materials in writing. Client shall not modify any such materials once approved by Appraiser. In the absence of satisfying the conditions of this paragraph with respect to a party who is not designated as an intended User,in no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such•eport,and Appraiser shall have no liability for such unauthorized use and reliance on any Appraisal Report. 17 Time Period for Legal Action. Except to the extent prohibited by applicable law,unless the time period is shorter under applicable low, and a<cept in connection with paragraph 16 above, Appraiser and Client agree that any ;ego action or lawsuit by one party against the other party or its affiliates, officers, directors. employees,contractors,agents, or other representatives,whether based in contract, warranty, indemnity, negligence, strict liability or otter tort or otherwise, relating to (a) this Agreement or the Appraisal Report, (b) any services or appraisals under this Agreement or(c) any acts or conduct reating to such services or appraisals in connection with this Agreement, shall be filed within three (3) years from the date of delivery to Client of the Appraisal Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims, causes of action or damages. Page 319 of 358 VALUATION& ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement Page 4 of 8 December 22, 2020 APPROVED AS TO FORM A LANP.UAGE FOR EXECUTION AGREED AND ACCEPTEDDate FOR CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT ("CLIENT"): Signature Date Raul Aguila City Manager Name Title 305.673.7000 RoyColey@miamibeachfl.gov Phone Number E-Mail Address ADDITIONAL OPTIONAL SERVICES Assessment & Consulting Services: CBRE's Assessment & Consulting Services group has the capability of providing a wide array of solution-oriented due diligence services in the form of property condition and environmental site assessment reports and other necessary due diligence services (seismic risk analysis, zoning compliance services, construction risk management, annual inspections, etc.). Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full complement of consulting services, or you may reach out to us at WhitePlainsProposals(c?)cbre.com. We will route your request to the appropriate manager. For more information, please visit www.cbre.com/ussessrnent. Initial Here CBRE Page 320 of 358 VALUATION & ADVISORY SERVICES Proposal and Contract for Services SPECIFIC PROPERTY DATA REQUEST If any of the requested data and information is not available, CBRE, Inc., reserves the right to extend the delivery date by the amount of time it takes to receive the requested information or make other arrangements. Please have the requested information delivered to the following: Stuart J. Lieberman, MAI Vice President stuart.lieberman@cbre.com CBRE, Inc. Valuation & Advisory Services 777 Brickell Avenue, Suite #1100 Miami, FL 33131 CBRE Page 321 of 358 Addenda Addendum D QUALIFICATIONS Page 322 of 358 CBRE Stuart J. Lieberman, MAI Vice President, Florida-Caribbean Region _ Experience Stuart J. Lieberman, MAI is a Vice president with over 30 years of real estate appraisal and consulting experience. Mr. Lieberman is in the Valuation & Advisory Services Group's Miami office in the South Florida/Caribbean Region. Since 1987, Mr. Lieberman has provided real estate valuation and consulting services to the financial lending community, institutional clients, government agencies, corporate entities, legal & accounting professionals, developers and P private individuals. Mr. Lieberman has experience providing market studies, feasibility studies, highest & best use analysis, market rent studies, expert 40" testimony & litigation support and portfolio analysis. T +13053816472 Mr. Lieberman's experience encompasses a wide variety of property types M +13053816462 including single & multi-family residential, senior housing, mobile home parks, Stuart.lieberman@cbre.com high density urban & ocean front developments, open space & public parks, 777 Brickell Avenue automobile dealerships, service stations & convenience stores, funeral homes, Suite 1100 medical office & surgical centers, mixed-use office, financial institutions & branch Miami, FL 33131 banks, retail shopping centers & regional malls, parking garages, restaurants & night clubs, movie theatres, health & fitness clubs, marinas & shipping terminals, FBOs (fixed base operations), industrial flex warehouses, bulk distribution, truck terminals, refrigeration warehouses, R&D, business parks, self-storage facilities; Clients and, special purpose properties, including bowling alleys, broadcasting facilities, Represented car wash, historical properties, public & private schools, day care facilities, houses of worship & religious facilities, tourist attractions, sport arenas and • BankUnited entertainment venues & theatres. • Ocean Bank • Centennial Bank Professional Affiliations / Accreditations • C-III Asset Management • City of Miami • Appraisal Institute-Designated Member No. 12003 • Miami-Dade County, Internal • Certified General Real Estate Appraiser,State of Florida License RZ 1074 Services Dept. • Licensed Real Estate Broker-Associate, State of Florida License BK 0477878 Education • University of South Florida,Tampa, FL, BA, Political Science- 1985 • Appraisal Institute,American Institute of Real Estate Appraisers, Society of Real Estate Appraisers and Florida Real Estate Commission core courses, electives and seminars. Page 323 of 358 1.1 ' ..App Ron DeSantis,Governor Halsey Beshears, Secretary _' dbr a •"4., r ` STATE OF FLORIDA Gob s�"° DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES :I ---= Vir--:: '4 _ --------_ 2E: .:-......-- z____ : _„, i . —'L1Sr.2s. ' r' r' ook i 1 LIEBERMAN, STUART JAY 'it 777 BRICKELL AVE SUITE 1100 ` r ,- .. MIAMI - FL 33131, •, i * `.r * IJl+`4t1. +.r� ; r Pi, * e I i r • `% +'+ti. /.eai!t..+ lc= • r r- LICENSE NUMBER: RZ1074 EXPIRATION DATE: NOVEMBER 30, 2022 Always verify licenses online at MyFloridaLicense.com f '....7;e!...: Do not alter this document in any form. 1711 . This is your license. It is unlawful for anyone other than the licensee to use this document. Page 324 of 358 James E. Agner, MAI, AI-GRS CBRE Senior Managing Director, Florida-Caribbean Southeast Region Experience - James Agner is the Senior Managing Director of the Valuation&Advisory Services for the Florida- - Caribbean Southeast Region. Located in the CBRE Miami office since 1995,Mr.Agner hos over thirty years of real estate appraisal and consulting experience throughout the State of Florida,with primary experience ir. South Florida and in the Caribbean. Mr.Agner is a designated member of the Appraisal Institute (MAI)and General Review Specialist(AI-GRS), member of the Society of Golf ly Appraisers(SGA),and Royal Institution of Chartered Surveyors(MRICS) and is licensed as a Certified General Real Estate Appraiser in the State of Florida. He also has provided expert witness testimony in the Circuit Courts-State of Florida and United States Bankruptcy Courts. As Senior Managing Director,Mr.Agner leads a valuation and advisory staff in Miami and Palm Beach Counties that provides exceptional quality appraisal work and client service in South Florida, Treasure Coast and the Florida Keys. He also coordinates all activities for Florida and in the Caribbean, including overseeing new business development,client relations and appraisal quality T + 1 305 381 6480 control production. Mr.Agner is also the National Director of the Golf Valuation Group for CBRE. james.agner@cbre.com www.cbre.com/James.Agner Professional Affiliations / Accreditations 777 Brickell Ave., Suite 1100 Miami, FL 33131 • Appraisal Institute-Designated Member(MAI), Certificate No. 7791 • Appraisal Institute-General Review Specialist(Al-GRS), Certificate No. 69150 • Society of Golf Appraisers (SGA), Certificate No. 25 • Royal Institution of Chartered Surveyors-Member(MRICS), Certificate No. 7505662 Clients • Certified General Real Estate Appraiser, State of Florida, #RZ382 • Licensed Real Estate Broker,State of Florida, BK402088 Represented • LNR Partners — Education • Wells Fargo • Truist • Florida State University,Tallahassee, FL • PNC Bank • Amerant Bank _ Bachelors of Science in Business Administration,Marketing - 1981 • Popular Bank • 5/3 Bank • First Horizon Bank • Santander Bank • Regions Bonk • TD Bank • Bank United • US Century • CitiBank • Deutsche Bank • Ocean Bank • Centennial Bank • Bank OZK • First Bank Florida Page 325 of 358 i' -�' Ron DeSantis, Governor is,.�;� ��!• Halsey Beshears, Secretary i4` - f FI rich r , R` . Il Sittik STATE OF FLORIDA ,', ` DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES wird 1,I r il -9�1ss,...ar _., _,_._ —17: , — .b, a . . g 'if 1., A- AGNER, JAMES E w-- '; 777 BRICKELL AVE SUITE 1100 rif « `Nio MIAMI FL 33131 -. Via' a . i s *, ,,No . W.I. • 4 .0... a ail.,«r +� `N, 4' f Ia/4 l o.w*s'�► � ." I LICENSE NUMBER: RZ382 EXPIRATION DATE: NOVEMBER 30, 2022 Always verify licenses online at MyFloridaLicense.com ElVdall CI 1 - � J � --' �� 'I#+ir� Do not alter this document in any form. . . This is your license. It is unlawful for anyone other than the licensee to use this document. 1 El 4 , Page 326 of 358 l j Page 327 of 358 . • I • . . 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L-312 Agenda Item R?A Date 5- ,-,l( VACATION AND RIGHT OF WAY IMPROVEMENT AND MAINTENANCE AGREEMENT FOR SEAGULL HOTEL SITE AT 100 21 STREET THIS VACATION AND RIGHT OF WAY IMPROVEMENT AND MAINTENANCE AGREEMENT (this "Agreement") is made and entered into as of the of 2021, by and between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation of the State of Florida (the "City"), and BHI MIAMI LIMITED CORP., a Delaware Corporation (the "Owner"). RECITALS: WHEREAS, the City holds a right-of-way dedication to the portion of the southern twenty-five (25) feet of 21 Street located approximately 150 feet east of Collins Avenue and running east for approximately 269.43 feet, consisting of approximately 6,736.28 square feet, and more particularly described in the attached Exhibit "A" (the "Roadway Segment"); and WHEREAS, the Owner owns the property abutting the Roadway Segment, which is known as 100 21 Street and is identified by tax folio number 02-3226-001-0040 (the "Owner's Property"), more particularly described in the attached Exhibit "B"; and WHEREAS, the Owner intends to redevelop the Owner's Property as a hotel development (the "Proposed Development"); and WHEREAS, in conjunction with Proposed Development, the Owner has requested that the City vacate the Roadway Segment, and has submitted its application to the City's Public Works Department with respect thereto; and WHEREAS, the Proposed Development shall be developed as a unified development site, and the former right of way and the Owner's Property would be joined via a covenant in lieu of unity of title following the effective date of the vacation, to permit the Owner to utilize the floor area associated with the Roadway Segment within the Proposed Development; and WHEREAS, in accordance with Article II, Sections 82-36 through 82-40, of the City Code, (1) the City obtained an independent appraisal of the fair market value of the property proposed to be vacated; (2) the proposed vacation has been transmitted to the Finance and Economic Resiliency Committee ("FERC") for its review; (3) the City's Planning Board, after a duly noticed public hearing, recommended approval of the vacation; (4) the City's Planning Department has prepared a written planning analysis that was duly submitted to the City Commission concurrent with its consideration of the proposed vacation; and (5) the title of the Resolution approving the proposed vacation was heard by the City Commission on two separate meeting dates, with the second reading accompanied by a duly noticed public hearing; and WHEREAS, the City Commission approved the vacation of the Roadway Segment, on first reading, on February 10, 2021, and set a second and final reading of the Vacation Resolution; and WHEREAS, the City Commission approved the vacation of the Roadway Segment, on second reading, after a duly notice public hearing through Resolution 2021- on 2021 (the "Vacation Resolution"); and WHEREAS, the vacation of the Roadway Segment shall be subject to and conditioned upon the Owner's delivery of certain public benefits to the City, as set forth in this Agreement, which include: (1) the Owner making public benefit payments totaling $7,400,000 to the City ("Public Benefit Payment");(2) the Owner providing the City with a perpetual easement over the Roadway Segment to ensure (i) continued public use of the Roadway Segment for City access, (ii) public pedestrian and vehicular travel, and (iii) the installation and maintenance of utilities by the City; and (3) the Owner has further agreed to the installation and perpetual maintenance of additional landscaping adjacent to the Owner's Property within the City's Beach Access and Beachwalk area depicted in Exhibit "C" to be memorialized in the instant Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Recitals. The above recitals are true and correct and incorporated herein by reference. 2. Public Benefit Payment. The Owner shall make the Public Benefit Payment contribution to the City in several payments, as follows: a. The Owner shall make the first payment to the City, in the amount of $1,000,000, within thirty (30) days following Historic Preservation Board approval for the Proposed Development becoming final and non- appealable (the "First Installment"). The First Installment shall be refundable until the vacation of the Roadway Segment is effective, as set forth in Section 3. b. The Owner shall make the second payment, in the amount of $4,000,000, prior to the issuance of a full building permit for the Proposed Development (the "Second Installment"). The vacation of the Roadway Segment shall be effective as of the date the Owner makes the Second Installment. Upon the Owner's payment of the Second Installment, both the First Installment and Second Installment shall be non-refundable. c. The Owner shall make the third payment, in the amount of$2,400,000, prior to requesting the City's issuance of a temporary certificate of occupancy or temporary certificate of completion allowing public occupancy (the "TCO"), or a certificate of occupancy or certificate of completion (the "CO"), whichever comes first, for the Proposed Development (the "Final Installment Payment"). This shall not preclude the issuance of a TCO allowing for the stocking and training of staff before the Owner makes the Final Installment Payment. The Final Installment shall be non-refundable. 3. Conditions Precedent to Issuance of Certificate of Occupancy. Owner acknowledges that the Public Benefit Payment is essential consideration for the City's vacation of the Roadway Segment. Accordingly, Owner agrees that the City shall not issue a TCO allowing public occupancy or CO (in whole or in part), until the Owner has made the Final Installment Payment, and that based on Owner's agreement, the City shall condition and withhold the issuance of the TCO or CO for the Proposed Development until such time as the Final Installment Payment is made. 4. Closing and Grant of Easement. a. Within ten (10) days of the Owner making the Second Installment Payment described in Section 2(b), the parties shall schedule a closing whereby: (i) the City shall release its exclusive easement and convey its interests in the Roadway Segment to the Owner, via quit claim deed, in a form acceptable to the City in its reasonable discretion, pursuant to and subject to the terms of the Vacation Resolution; and (ii) the Owner shall simultaneously execute the perpetual Roadway Easement in favor of the City pursuant to the easement agreement substantially in the form of Exhibit "D" attached hereto and incorporated herein by this reference. b. At the closing, Owner shall also execute and deliver the unity of title joining the Roadway Segment with the Owner's Property as part of a unified development site, in a form acceptable to the City, which unity of title shall be binding on Owner and its successors and assigns. c. Owner acknowledges that until the Closing, no application for a Building Permit for the Proposed Development may lawfully be approved (and no Building Permit may be issued) without the City's joinder to such application while the City is the owner of the Roadway Segment. The City agrees, upon Owner's request, to join any application for a Building Permit, but a Building Permit shall not be issued until the Closing. Notwithstanding the foregoing, the City may revoke such proprietary consent if the Owner terminates this Agreement or has failed to make the first payment under Paragraph 2(a) of this Agreement, and, upon such revocation, the City may, in its governmental capacity, withhold issuance of any Building Permit for the Proposed Development which requires the City's proprietary consent for issuance. 5. Reverter Clause. The City's quit claim deed for the Roadway Segment shall contain a reverter clause, to provide for the Roadway Segment to revert back to the City in the event the Owner fails to satisfy all conditions of the Vacation Resolution and this Agreement. The reverter shall terminate upon the Owner's delivery of the Final Installment payment. 6. Installation and Maintenance of Beachwalk Improvements. Subject to necessary City approvals, the Owner shall design, fund, install, maintain and repair the following enhancements (the "Enhancements") within the public Beachwalk Area (the "City Property") adjacent to the Owner's Property as depicted on the attached Exhibit"C:" (a) Lighting; (b) Landscaping; (c) Irrigation for landscaping; and (d) Pedestrian walkways providing access to the Owner's Property. The Enhancements shall be substantially consistent with those depicted on Exhibit "C", and shall be installed prior to the issuance of a Final Certificate of Occupancy for the Proposed Development. The Owner shall install and maintain all Enhancements in a manner consistent with the quality the Owner provides to the open areas of the Owner's Property and in accordance with the City's Routine Ground Maintenance Specifications, attached hereto and incorporated herein as Exhibit "E." All Enhancements shall be installed and maintained at Owner's sole cost and expense. In the event Owner fails to perform any maintenance or repair work as required under this Agreement, and in addition to the City's rights as contained in Section 10, the City shall notify Owner of Owner's failure to perform said maintenance or repair work. If Owner has not commenced said maintenance or repair work within two (2) days (for work necessary to maintain public safety) or seven (7) days (for all other work) following notice from the City, City has the right to remove, maintain and repair Enhancements, and charge Owner all costs associated with all such work. If the Owner shall not pay such bill within 15 days or receipt, then interest shall accrue on the unpaid amount from the time it was expended until paid at the maximum interest rate permitted by law, and the City shall be entitled to all collection costs, including attorney's fees and costs, for enforcement of the Owner's payment obligation.The Owner and City shall enter into a separate Maintenance and Installation Agreement to be recorded in the public records of Miami-Dade County incorporating the provisions of this Section 6, attached to this Vacation Agreement as Exhibit "F". 7. Monitoring of the City Property. The Owner shall include the City Property within its security monitoring plan for the Owner's Property to the extent authorized by the City and allowable under applicable law. Such authorized security monitoring plan shall require, at a minimum, 24/7 video recording of the City Property and all such video recordings shall be retained by the Owner for a period of at least thirty (30) days. As the Owner's security staff only has limited (citizen) arrest powers, and in order to enhance public safety within the City Property, the Owner's security staff shall coordinate any enforcement action pertaining to alleged criminal law violation(s) with the Miami Beach Police Department. 8. Cooperation. Should any claims, demands, suits or other legal proceedings be made or instituted by any person against the City which arise out of the matters_relating to this Agreement, Owner shall provide the City with all pertinent information and reasonable assistance, in the defense or other disposition thereof. 9. Recording and Term. This Agreement shall be recorded in the Public Records of Miami-Dade County, Florida, at the cost of the Owner. The obligations set forth in this Agreement are intended to be covenants that will run with the title to the Roadway Segment, which shall be binding on the Owner, and its heirs, successors, assigns, personal representatives, mortgagees and lessees, and against all persons claiming by, through or under any of them. The Owner's obligations under this Agreement run with the land and are not capable of being rejected under 11 U.S.C. §365. The obligations associated with the installation of improvements in Paragraph 5 shall terminate upon the City's acceptance of the improvements through the issuance of a Certificate of Occupancy for the Proposed Development. The maintenance obligations in Paragraph 5 shall remain in full force and effect and shall be binding upon the parties, their successors in interest and assigns for an initial period of thirty (30) years from the date this instrument is recorded in the public records, and shall be automatically extended for successive periods .of ten (10) years, unless modified, amended or released prior to the expiration thereof. 10. Force Majeure. The time for the installation, maintenance, and repair of the Enhancements will be tolled due to force majeure events (including, without limitation, strikes, lockouts, acts of God, pandemics, hurricanes and severe weather, and other causes beyond the control of either party) ("Force Majeure Event"). In no event shall "Force Majeure Event" include economic hardship or financial inability to perform. Any party claiming such Force Majeure Event shall deliver written notice to the other party of such Force Majeure Event within twenty-one (21) days after first becoming aware of the occurrence thereof, which notice shall describe in reasonable detail the events giving rise to the Force Majeure Event; and such Party shall diligently attempt to remove, resolve or otherwise seek to mitigate such delay and keep the other party advised with respect thereto. Time is of the essence with respect to this provision, and any failure by a party to timely deliver such notice of a Force Majeure Event shall be deemed a waiver of such party's right to delay performance as a result of such Force Majeure Event. 11. Default. (a) If Owner breaches its obligations as specified herein (and same are not waived in writing by the City), then the City shall give Owner written notice specifying the nature of the default and Owner shall have thirty (30) days for a non-monetary default and five (5) days for a monetary default, after receipt of such notice within which to cure the specified default; provided, however, if the nature of such non-monetary default is such that the same cannot reasonably be cured within such thirty (30) day period, Owner shall not be deemed to be in default if Owner shall, within such period, commence such cure and thereafter diligently prosecute the same to completion; provided further, however, that the maximum cure period for any default hereunder shall not exceed ninety (90) days from the date of the initial written notice of default from the City to Owner. If the default is not cured within the applicable cure period, or if Owner becomes the subject of any bankruptcy or insolvency proceeding, then the City may, on written notice to Owner, terminate this Agreement. (b) If the City breaches its obligations as specified herein (and same are not waived in writing by Owner), then Owner shall give the City written notice specifying the nature of the default and the City shall have thirty (30) days after receipt of such notice, in the case of a non-monetary default, within which to cure the specified default; provided, however, if the nature of such default is such that the same cannot reasonably be cured within such thirty (30) day period, the City shall not be deemed to be in default if the City shall, within such period, commence such cure and thereafter diligently prosecute the same to completion; provided further, however, that the maximum cure period for any default hereunder shall not exceed ninety (90) days from the date of the initial written notice of default from Owner to the City. If the default is not cured within the applicable cure period, then Owner may, on written notice to the City, terminate this Agreement. 12. Representations and Warranties by the City. The City represents and warrants to Owner that (a) the City has all necessary power to execute and deliver this Agreement and perform all its obligations hereunder, (b) this Agreement has been duly authorized by all requisite action on the part of the City and is a valid and legally binding obligation of the City enforceable in accordance with its terms, and (c) neither the execution and delivery of this Agreement by the City nor the performance of its obligations hereunder will result in the violation of any law, rules or regulations or any other agreement to which the City is a party or is otherwise bound. 13. Representations and Warranties by Owner. Owner represents and warrants to the City that (a) Owner is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, is authorized to transact business under the laws of the State of Florida and has all necessary power to execute and deliver this Agreement and perform all its obligations hereunder, (b) this Agreement has been duly authorized by all requisite action on the part of Owner and is a valid and legally binding obligation of Owner enforceable in accordance with the terms, and (c) neither the execution and delivery of this Agreement by Owner nor the performance of its obligations hereunder will result in the violation of any provision of its articles of incorporation or any other organizational or governing document as amended to date, or will conflict with (i) any law or any order or decree of any court or governmental instrumentality having jurisdiction or (ii) any other agreement to which Owner is a party or is otherwise bound. 14. Automatic Stay. The parties agree that in the event of a bankruptcy filing by the Owner, that the enforcement of the City's rights hereunder are a proper exercise of its police or regulatory powers and therefore such enforcement of the Agreement by the City in the event of a bankruptcy filing by the Owner is not prohibited by the automatic stay provisions of 11 U.S.C. §362(a). Notwithstanding, to the extent applicable, Owner agrees for good and valuable consideration to waive the provisions of 11 U.S.C. §362(a) as it relates to the ability of the City to enforce its rights under the Agreement. 15. Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns. 16. Notice. All notices, demands, requests, consents and approvals which may, or are required to, be given by any party to any other party thereunder shall be in writing and either(a) personally delivered, (b) transmitted by fax, (c) sent by United States mail, registered or certified, postage prepaid, return receipt requested, or (d) sent by a nationally recognized overnight delivery service, freight prepaid, return receipt requested, and addressed as follows, and shall be deemed given upon receipt if delivered personally, upon the sending machine printing a confirmation of transmission, if transmitted by fax, or upon the date of delivery (or refusal to accept delivery) on a business day (or the next succeeding business day, if not delivered on a business day), as evidenced by the return receipt if sent pursuant to subsection (c) or (d) above, at the address specified below, or to such other addresses as either party may from time to time designate in writing and delivery in a like manner. Notice given by an attorney for either party shall be deemed as effective notice given by such party. The City: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Manager Fax: (305) 673-7782 With a copy to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Attorney Fax: (305) 673-7002 City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: Roy Coley, Public Works Director Fax: (305) 673-7028 Owner: BHI Miami Limited Corp. 1521 Alton Rd. #403 Miami Beach, Florida 33139 Attn: Wayne Landing With a copy to: Bercow Radell Fernandez Larkin & Tapanes, PLLC 200 S. Biscayne Boulevard, Suite 300 Miami, Florida 33131 Attn: Michael Larkin, Esq. 17. Insurance. (a) City Election to Self-Insure. The City has elected to self-insure the City Property against physical damage and against liability for loss, damage or injury to property or persons that might occur on the City Property or to the Enhancements located on the City Property. (b) Owner's Insurance. Owner shall obtain and maintain a liability insurance policy in the covered amount of at least $1,000,000 per incident to provide compensation for personal injuries or related claims stemming from any error, omission, negligence, or misconduct on the part of the Owner, or any of its respective officers, agents, servants, employees, contractors in the installation or maintenance of the Enhancements on the City Property. 18. Indemnification by Owner. Owner shall indemnify, hold and save the City, and its officers, agents, contractors, and employees, whole and harmless and, at City's option, defend same, from and against all claims, demands, actions, damages, loss, cost, liabilities, expenses, and judgments of any nature recovered from or asserted against City on account of this Agreement or injury or damage to person(s) or property, to the extent that any such claim, damage or injury may be incident to, arise out of, or be caused, either proximately or remotely, the Enhancements. Owner shall and will pay all costs and expenses, including reasonable attorney's fees and court costs, incurred by or imposed upon the City by virtue of any litigation brought by third parties against the City, including appeals, alleging injury or damage to person(s) or property due to the installation or maintenance of the Enhancements . 19. Partial Invalidity. In the event that any one or more of the phrases, sentences, clauses, or paragraphs contained in this Agreement shall be declared invalid by final and unappealable order, decree, or judgment of any court, this Agreement shall be construed as if such phrases, sentences, clauses, or paragraphs had not been inserted in this Agreement, it being intended by the parties that the remaining provisions of this Agreement shall remain in full force and effect notwithstanding such invalidation. 20. No Joint Venture. It is not intended by this Agreement to, and nothing contained in this Agreement shall, create any partnership, joint venture, limited liability company or other arrangement between the City and Owner other than that of owner and independent contractor. No term or provision of this Agreement is intended to be, or shall be, for the benefit of any person not a party hereto, and no such other person shall have any right or cause of action thereunder. 21. Governing Law. This Agreement and the rights of the parties hereto shall be governed and construed in accordance with the laws of the State of Florida and all claims related to this Agreement shall be brought and prosecuted in Miami-Dade County, Florida, which shall be the exclusive venue for all such matters. Before resorting to litigation, the parties agree to use commercially reasonable, good faith efforts to resolve disputes without litigation as hereinafter provided. In the event of a dispute which the parties cannot resolve directly between themselves within ten (10) days, the parties agree to submit to non-binding mediation for up to a period of thirty (30) days after either party sends written notice to the other party demanding mediation (but no longer unless the parties mutually agree) to resolve the dispute using an independent, trained mediator agreed to by both parties. If the dispute remains unresolved after such thirty (30) day period or if the parties cannot agree upon a mediator within fifteen (15) days after the demand for mediation, either party may proceed to commence litigation. The parties shall equally split the cost of the mediator. 22. Enforcement. In the event of any dispute under this Agreement concerning the meaning or interpretation of any provision of this Agreement, the party not prevailing in such dispute shall pay any and all costs and expenses reasonably incurred by the other party in enforcing or establishing its rights thereunder, including, without limitation, court costs and reasonable attorney's fees before and at trial and through all appellate levels. 23. Entire Agreement. This Agreement constitutes the entire agreement between the City and Owner with respect to the subject matter hereof, and supersedes and replaces all prior or contemporaneous discussions, negotiations, letters, memoranda or other communications, oral or written, with respect to the subject matter hereof. This Agreement may only be subsequently modified or amended in a writing signed by both the City and Owner. 24. Amendments. No change, amendment or modification of this Agreement shall be valid or binding upon the parties hereto unless such change, amendment, or modification shall be in writing and duly executed by all parties hereto. 25. No Waiver. Any waiver by any party of a breach of any provision of this Agreement shall not operate as, or be construed to be, a waiver of any other breach of such provision or of any breach of any other provision of this Agreement. The failure of a party to insist upon strict adherence to any term of this Agreement on one or more occasions shall neither be considered a waiver nor deprive that party of any right thereafter to insist upon strict adherence to that term or any other term of this Agreement. Any waiver must be in writing and signed by the party to be charged therewith. 26. Waiver of Jury Trial. The parties to this Agreement hereby agree not to elect a trial by jury of any issue triable of right by jury, and waive any right to trial by jury fully to the extent that any such right shall now or hereafter exist with regard to this Agreement or any action or proceeding in which more than one of such parties may be involved. This waiver of right to trial by jury is given knowingly and voluntarily by the parties hereto, and is intended to encompass individually each instance and each issue as to which the right to trial by jury would otherwise accrue. The parties hereto are each hereby authorized to file a copy of this paragraph in any proceeding as conclusive evidence of this waiver.27. Exculpation of the City. Notwithstanding anything contained in this Agreement to the contrary, upon the occurrence of any claim under this Agreement or termination caused by the City's default, the recourse of Owner against the City shall be limited to the actual damages incurred by Owner resulting from the City's material breach under this Agreement (after expiration of any applicable notice and cure period) or the City's willful misconduct or gross negligence, it being agreed that any employees or agents of the City shall never be personally liable for any such judgment and are hereby unconditionally and irrevocably released, satisfied and forever discharged of and from any and all actions, causes of action, claims, demands, losses, costs and expenses, whether direct, contingent or consequential. liquidated or unliquidated, at law or in equity, that Owner has or may or shall have. 28. Counterparts; Facsimile. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. A facsimile signature shall be deemed for all purposes to be an original. [SIGNATURES TO FOLLOW ON NEXT PAGE] EXECUTED as of the date first above written in several counterparts, each of which shall be deemed an original, but all constituting only one agreement. FOR OWNER: BHI Miami Limited Corp. Print Name: By: Name:Wayne Landing Title: Director Print Name: STATE OF FLORIDA SS: COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me this day of 2021 by Wayne Landing, as Director of BHI Miami Limited Corp., on behalf of the company. He is personally known to me or has produced as identification and who did/did not take an oath. NOTARY PUBLIC Typed or printed Name of Notary My Commission expires: Serial No., if any EXECUTED as of the date first above written in several counterparts, each of which shall be deemed an original, but all constituting only one agreement. FOR CITY: CITY OF MIAMI BEACH, a Florida Municipal Corporation Print Name: By: Name: Dan Gelber Title: Mayor Print Name: STATE OF FLORIDA SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of 2021 by Dan Gelber, as Mayor of the City of Miami Beach, Florida, on behalf of the City. He is personally known to me or has produced as identification and who did/did not take an oath. NOTARY PUBLIC Typed or printed Name of Notary My Commission expires: Serial No., if any Page 334 of 358 MIAMI BEACE City of Miami Beach, .700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfi.gov PLANNING DEPARTMENT MEMORANDUM TO: Raul Aguila, Interim City Manager FROM: Thomas R. Mooney, AICP Planning Director DATE: April 27, 2021 SUBJECT: Planning Analysis of Proposed Right of Way (ROW) Vacation — Portion of Southern Half of 21st Street BACKGROUND Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of City-owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease. The proposal is to vacate the southern half of 21' Street, generally located between approximately 150 feet east of Collins Avenue and Miami Beach Drive (See the "Right of Way Vacation Area" map at the end of this report). The right of way contains approximately 6,736 SF/0.155 AC in total lot area. A perpetual public access easement will be provided, allowing for the area to continue to function for vehicular and pedestrian access. In exchange for the vacation, the developer of the adjacent Seagull Hotel will be providing certain public benefits to the City, including the payment of $7,400,000, a maintenance agreement providing for the installation and perpetual maintenance of additional landscaping within the City's beach access and Beachwalk area east of Miami Beach Drive. and a perpetual easement in favor of the City over the row, to ensure continued public use of the row for City access, pedestrian and vehicular travel, and utilities. The following is an analysis based on the criteria delineated in the Code: ANALYSIS 1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan. Consistent — The vacated ROW will continue to be used for public purposes. Pubic access will continue to be provided. The area will be enhanced with additional landscaping. This is consistent with the Comprehensive Plan Conservation/Coastal Zone Management Element Objective 10, which states the following: Objective 10: PUBLIC SHORELINE ACCESS Page 335 of 358 Analysis of Proposed Right of Way Vacation— Portion of Southern Half of 21st Street May 14. 2019 Page 2 of 3 Increase the amount of public access to the beach or shoreline consistent with the estimated public need. 2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed, the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. Consistent — No negative impacts are anticipated by the proposal. The ROW being vacated by the City is within the High Density Multi Family Residential (RM-3) future land use category. This category allows for a maximum floor area ratio (FAR) of 2.0 for oceanfront lots located in the Architectural District. Vacation of the 6,736 SF of ROW will allow approximately 13,472 of additional floor area to be developed within a unified development site with the abutting parcel. • Though a ROW is proposed to be vacated, no construction is being proposed within the vacated ROW; therefore, there will be no diminution of open space. The vacated area will be rebuilt consistent with additional landscaping and other enhancements. • Vacation of the ROW will not affect the transportation network, as vehicular access will be maintained. If the use of the floor area that is made available from the vacation of the ROW were used for hotel units, the use would potentially generate up to approximately 18 peak hour trips. This does not represent a significant increase in peak hour volumes. Traffic impacts for any new development will be addressed as part of the land use board process. Any new development will also be subject to pay mobility fees which will help fund mobility transportation improvements in the City. • No noise level impacts are anticipated from the vacation, as the use of the property will remain open and the use will be similar in nature. Any noise impacts of any new development on the adjacent will be addressed as part of the land use board processes. • The appearance of the property will improve with the proposed vacation, as the applicant will be providing landscape and other enhancements, as well as improving the development site. These improvements should enhance surrounding property values. • Vacation of the ROW will allow for improved utilization of the adjacent parcel. and lead to an improved development. • Vacation of the ROW will not impact adopted levels of service for public infrastructure. Compliance with parks concurrency and mobility fees for the utilization of the floor area that is gained within a unified development site will be determined and mitigated in conjunction with the building permit process; Page 336 of 358 Analysis of Proposed Right of Way Vacation— Portion of Southern Half of 21st Street May 14, 2019 Page 3 of 3 however. no additional utilities or infrastructure are expected to be necessary. 3. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the city's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life. Consistent-This proposal expands the City's revenue base by adding untaxed public property to the tax rolls. The additional floor area that is made available to the abutting property will improve the viability of a new development and create additional taxable value. In addition, the existing building on the abutting site will be greatly improved. 4. A determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project. Consistent-The surrounding neighborhood will not be negatively affected. The ROW area will remain undeveloped, and a public access easement will be provided. As a result, it will not lead to the blocking of views. No environmental intrusions will be created by the proposed ROW vacation. 5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Consistent — Vacation of this ROW will not affect the parking or infrastructure needs cf adjacent properties. Surrounding properties are not dependent on the parking provided within this ROW should it be removed in the future. Additionally, the site is adjacent to a public parking lot. 6. Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition. Not applicable - The Planning Department has no other issues it deems appropriate to analyze for this proposal. CONCLUSION Vacation of the public ROW is consistent with the Goals, Objectives, and Policies based on the proposals for the property. The vacation of the Street public ROW will generate no negative impacts for the surrounding area. The property would continue to serve a public purpose; as utility and pedestrian access will continue to be provided. p-oviding exce !:r _ , ._ e work,and play in our vibrant tropical historic community. Page 337 of 358 EXHIBIT H This instrument was prepared by: Name: Rafael Paz,Acting City Attorney Address: City of Miami Beach 1700 Convention Center Drive,4th Floor Miami Beach,Florida 33139 EASEMENT AGREEMENT (21"Street Easement) THIS EASEMENT AGREEMENT(the"Agreement"), is made this day of May 2021, by BHI Miami Limited Corp., a Delaware limited liability company, having an address of 1521 Alton Rd. #403 Miami Beach, Florida 33139 (together with its successors and permitted assigns, the"Owner"), in favor of the CITY OF MIAMI BEACH, a Florida municipal corporation(together with its successors and permitted assigns,the"City"). WITNESSETH: WHEREAS, the Owner holds fee simple title to that certain real property more specifically described on Exhibit "A" attached hereto and incorporated herein by this reference (the "Easement Area"); WHEREAS, BHI Miami Limited Corp. holds fee simple title to that certain real property more specifically described on Exhibit "B" attached hereto and incorporated herein by this reference (the "Benefited Parcels")(the Easement Area and the Benefited Parcels are herein collectively referred to as the"Property");and WHEREAS, the Owner seeks to grant a perpetual non-exclusive easement in, upon, under and through the Easement Area in favor of the City for the"Easement Purposes"(as hereinafter defined). NOW THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound hereby agree as follows: 1. Recitals. The above recitals are true and correct and by this reference are hereby incorporated into the body of this Agreement as if fully set forth herein. 2. Grant of Easement. The Owner hereby grants to the City a perpetual, non-exclusive and irrevocable easement in,upon,under and through the Easement Area for the purposes of: (a) providing to the general public, and to the City and its invitees, agents, employees, contractors, and licensees,an unrestricted way of passage,right of ingress and egress,access to,and reasonable use of,the Easement Area, including,without limitation,for public recreational purposes, and pedestrian and vehicular access over and across the Easement Area; (b) constructing, installing, operating, using, maintaining, repairing and replacing landscaping, sidewalks, pedestrian or bicycle paths, walkways, decks, street lighting, traffic or directional signage, 1 underground utilities, drainage, roadways, parks, and streetscape-related infrastructure, or any other improvements which City,in its reasonable discretion,deems necessary for the protection of the health,safety or welfare of the general public(collectively,the"Improvements")within the Easement Area; (c)authorizing the City to grant third parties providing utility services(the"City Grantees")the right to use and occupy the Easement Area for the sole purpose of providing any such utilities,without any need for Owner approval of any City Grantee;and (d) taking all other actions as may be reasonably necessary, without any need for Owner approval thereof,to develop and install Improvements within the Easement Area,or to operate the Easement Area,solely for public purposes, in the same manner as otherwise applicable to any public right of way areas of the City pursuant to the Code of Ordinances of the City of Miami Beach, Florida, as the same may be amended from time to time(the"City Code"),including,without limitation,the issuance by the City of temporary special event permits for cultural,recreational or other programming, sidewalk café permits,or any other actions as may be lawfully undertaken by the City on public right of way areas of the City (collectively, the "Easement Purposes"). The term"utilities"shall include,but not be limited to,water, sewer, stormwater,electrical,gas, telecommunications,telephone and cable. 3. Maintenance,Casualty,and Condemnation. City shall be responsible,at City's sole cost and expense,for maintaining the Easement Area,In the event that any portion of the Easement Area is damaged or destroyed by fire,flood,storm,or other casualty or by the act or omission of the City,any of the City's agents, employees, contractors, vendors, operators, representatives, licensees, or any other party retained by the City or for whom the City is legally responsible,or by the general public,City shall be solely responsible for any repair or restoration of the Easement Area,subject to an appropriation of funds by the City Commission,if any is required,in the same manner as applicable to other public right of way areas of the City. In addition, if any portion of the Easement Area is taken or condemned in any manner as a result of the exercise of the power of eminent domain by any governmental authority for any public or quasi-public use, including, without limitation,a conveyance or assignment in lieu of condemnation or taking,then this Agreement shall immediately terminate as to any portion of the Easement Area so taken,and the parties hereto shall be released automatically from all further obligations under this Agreement with respect to area taken, except for those obligations that expressly survive the termination of this Agreement.The Owner,its successors and assigns, will be entitled to receive the entire amount of any award made for any partial or complete taking of the Easement Area. 4. Construction in Easement Area. A. If the City elects to construct and/or install any Improvements within the Easement Area, the City hereby acknowledges and agrees that: (a) all fees, costs and expenses associated with the Improvements(including,without limitation,the design,permitting,construction,installation,operation,use, maintenance,repair and replacement thereof)shall be paid in full by the City;(b)the design and construction of all Improvements shall be performed and completed by the City(i)in a good and workmanlike manner, (ii) free from liens and defects, and (iii) in full compliance with all laws, rules, regulations, ordinances, codes and other requirements of governmental and quasi-governmental authorities having jurisdiction; and (c)upon final completion of the Improvements,the City shall(i)remove all debris,equipment and materials from the Easement Area,(ii)fill, compact,grade and otherwise restore the Easement Area to substantially the same condition as existed prior to commencement of the Improvements,including harmonizing the soil levels within the Easement Area and the lands adjacent thereto, and (iii) keep and maintain the Improvements (and all parts and components thereof) in good condition, repair and working order at all times. B. If the Owner elects to construct and/or install any infrastructure or other improvements within or above the Easement Area for Owner's use (the "Owner Improvements"), the 2 Owner hereby acknowledges and agrees that any such Owner Improvements shall be subject to and contingent upon the prior approval of the City Manager, and further agrees that: (a) all fees, costs and expenses associated with the Owner Improvements (including, without limitation, the design, permitting, construction, installation,operation,use,maintenance,repair and replacement thereof)shall be paid in full by the Owner; (b)the design and construction of all Owner Improvements shall be performed and completed by the Owner (i) in a good and workmanlike manner, (ii) free from liens and defects, and (iii) in full compliance with all laws,rules,regulations,ordinances,codes and other requirements of governmental and quasi-governmental authorities having jurisdiction; and (c) upon final completion of the Owner Improvements,the Owner shall(i)remove all debris,equipment and materials from the Easement Area,(ii) fill,compact,grade and otherwise restore the Easement Area to substantially the same condition as existed prior to commencement of the Owner Improvements, including harmonizing the soil levels within the Easement Area and the lands adjacent thereto, and(iii)keep and maintain the Owner Improvements(and all parts and components thereof) in good condition, repair and working order at all times. Subject to the issuance of necessary Public Works permits, the Owner may temporarily close portions of the Easement Area to the public when necessary to construct improvements on the Property. The City may not charge any fees for permits issued prior to January 1,2026. 5. Miscellaneous. 5.1 This Agreement shall be governed by, enforced and construed under the laws of the State of Florida. Venue for all actions,litigation and/or other proceedings arising out of this Agreement shall be exclusively in Miami-Dade County, Florida. BY ENTERING INTO THIS AGREEMENT, OWNER AND CITY EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO,OR ARISING OUT OF,THIS AGREEMENT. The prevailing party in any action,litigation or other proceeding that is based on any claim,controversy or other disputed matter arising under,out of or in connection with this Agreement shall recover from the non- prevailing party all fees, costs and expenses(including,without limitation,reasonable attorneys' fees and costs through all trial,appellate and post judgment levels and proceedings)incurred by the prevailing party in such action, litigation or other proceeding.As used herein,the term "Prevailing Party"means the party who receives substantially the relief sought upon final,non-appealable judgment,order,or other disposition of a court of competent jurisdiction. The provisions of this Section shall survive the termination or expiration of this Agreement. 5.2 The parties hereby acknowledge and agree that each has had an opportunity to be represented by or consult with independent legal counsel and that any rule of construction which provides that ambiguities are to be construed against the drafter shall not apply in the interpretation or construction of this Agreement. If any term,provision or portion of this Agreement is for any reason held to be invalid, illegal or unenforceable by a court of competent jurisdiction,then such term, provision or portion of this Agreement shall be given it nearest valid,legal and enforceable meaning,or construed as deleted,whichever such court may determine,and the same shall not invalidate the remaining terms,provisions and/or portions of this Agreement, which remaining terms, provisions and portions of this Agreement will remain in full force and effect. 5.3 This Agreement includes all exhibits attached hereto. This Agreement, together with all such exhibits,contains the entire agreement and understanding between the parties relating to the subject matter of this Agreement, and all prior or contemporaneous terms, covenants, conditions, representations,warranties,statements,agreements and understandings made by or on behalf of the parties, whether oral or written,are merged herein. 5.4 This Agreement may not be amended,modified or terminated except by a written instrument executed by the Owner and the City through its City Manager,or his designee,or the successor 3 administrative officer with jurisdiction over the matter, and which is recorded in the Public Records of Miami-Dade County, Florida. All provisions of this Agreement, including the benefits and burdens of the same,are covenants that run with the land,are not intended to be executory in nature,and shall be binding upon, and shall inure to the benefit of, the parties and their respective, heirs, legal representatives, successors and assigns.The rights and privileges of the Owner under this Agreement shall also inure to the benefit of the owners of the Benefitted Parcels and their successors and assigns. 5.5 The failure of any party to insist in any one or more instances upon strict performance of any term,covenant,condition or other provision of this Agreement will not be construed as a waiver or relinquishment of the future enforcement of such term,covenant,condition or other provision of this Agreement. 5.6 Wherever appropriate in this Agreement,the singular shall be deemed to refer to the plural and the plural to the singular,and pronouns of each gender shall be deemed to comprehend either or both of the other genders. The section and paragraph headings in this Agreement are for convenience only and shall not affect the meaning,interpretation or scope of the terms or provisions set forth therein. 5.7 This Agreement may be executed in multiple counterparts, each of which individually shall be deemed an original,but when taken together shall be deemed to be one and the same Agreement. 5.8 This Agreement shall never be construed as a conveyance in any manner whatsoever of fee simple title to any portion of the Property or the Easement Area; it being intended by the parties that this Agreement conveys only an easement interest with respect to the Easement Area for the specific uses and purposes set forth herein. 5.9 All of the rights,easements and interests herein created and granted are and shall be limited to and utilized solely for the uses and purposes expressly set forth herein. Except for Owner's use of the Easement Area in the same manner as made available to the general public pursuant to the purposes authorized pursuant to Section 2(a)herein,Owner shall not otherwise use the Easement Area for any other purpose, or make any Owner Improvements to the Easement Area, without the City's consent, which consent may be withheld by the City Manager, if the City Manager determines, at his or her sole discretion, that such proposed uses or Owner Improvements would interfere in any material respect with the exercise by the public or by the City of the rights granted to the public and the City herein. 5.10 Owner shall not withhold or obstruct City's access to the Easement Area for any of the purposes authorized in Section 2 of this Agreement. 5.11 This Agreement and the rights, easements and interests herein created and granted shall only become effective upon the recordation of this Agreement in the Public Records of Miami-Dade County. This Agreement and the rights,easements and interests herein created and granted shall run with the Easement Area,and shall be binding on all persons holding title to the Easement Area. 5.12 Nothing in this Agreement shall be construed to create a joint venture,partnership, tenancy in common,or joint tenancy relationship between the Owner and the City,nor shall this Agreement render either party liable for the debts or obligations of the other party. 6. Notice. All notices, demands, requests or other communications which may be or are required to be given,served,or sent by either the Owner or the City pursuant to this Agreement shall be in writing and addressed as follows: 4 If to Owner: BHI Miami Limited Corp. 1521 Alton Rd.#403 Miami,Beach,Florida 33139 Attn: Wayne Landing With a copy to: Bercow Rade11 Fernandez Larkin&Tapanes,PLLC 200 S. Biscayne Boulevard,suite 300 Miami,Florida,33131 Attn: Michael Larkin,Esq, If to the City: City of Miami Beach 1700 Convention Center Drive,4th Floor Miami Beach,Florida 33139 Attn:City Manager With copies to: City of Miami Beach 1700 Convention Center Drive,4th Floor Miami Beach,Florida 33139 Attn: Public Works Director Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent. Any notice or other communication(i)sent by certified United States mail,postage prepaid,return receipt requested will be deemed effectively given or received on the third(3rd)business day following the postmark date of such notice or other communication; (ii)sent by overnight courier or by hand will be deemed effectively given or received upon receipt or refusal, as the case may be;and(iii)sent by electronic mail will be deemed effectively given or received on the day of transmission of such notice if sent on a business day before 6:00 P.M.Eastern Standard Time,or on the following business day if sent after 6:00 P.M.Eastern Standard Time or on a non-business day.Any notice or other communication given in the manner provided above by counsel for either party will be deemed to be notice or such other communication from the party represented by such counsel. 7. City Indemnity. Solely to the extent and limits permitted by Section 768.28 of the Florida Statutes,and without waiving any rights or defenses therein,the City shall indemnify,defend and hold the Owner harmless from and against all claims, demands,causes of action, suits, losses,damages, liabilities, liens, judgments, fees, costs, expenses and other charges (including, without limitation, reasonable attorneys'fees and costs through all trial,appellate and post judgment levels and proceedings)(collectively, the "Claims") commenced, incurred and/or paid by or against the Owner to the extent the Claims arise from:(a)the willful misconduct or negligent use of the Easement Area by the City or any successor,assign and/or City Grantee thereof expressly approved by the City Commission; (b) the design, construction, installation, operation, use, maintenance, repair and/or replacement of, or the failure to properly design, construct,install,operate,use,maintain,repair and/or replace,any Improvements by the City or any successor, assign and/or City Grantee thereof expressly approved by the City Commission;and(c)any default,breach or violation of any term, covenant,condition or provision of this Agreement by the City or any successor, assign and/or City Grantee thereof expressly approved by the City Commission, including, without limitation, any failure by the City to maintain, repair, and restore the Easement Area in accordance with Section 3 of this Agreement. Notwithstanding anything to the contrary contained in this Agreement: (y) nothing in this Agreement shall impair, limit or prohibit any rights or remedies the Owner has against any person or entity using or occupying the Easement Area under, through or as an assignee of the City or a City Grantee; and(z)the obligation of the City to indemnify, defend and hold the Owner harmless as set 5 forth herein shall not apply to the extent any such Claims arise from the gross negligence or willful misconduct of the Owner or any successor,assign and/or grantee thereof. Nothing herein shall be construed to increase or otherwise waive any limits of liability or immunity afforded to the City under the laws of the State of Florida,including,without limitation,the limitations of liability and immunities set forth in Section 768.28 of the Florida Statutes. 8. Insurance. The City agrees to maintain a self-insurance fund,in compliance with Sections 768.28(16)(a) and 440.09, Florida Statutes, in the same manner as provided by the City with respect to other public right of ways of the City, to cover liability, workmen's compensation, and other claims that may arise against the City with respect to this Agreement or the use of the Easement Area. Owner shall maintain insurance sufficient to cover Owner's liability exposure with respect to the Easement Area,which insurance shall include Commercial General Liability Insurance, including Products-Completed Operations and Contractual Liability,in an amount not less than$1,000,000 combined single limit per occurrence, and $2,000,000 in the aggregate, for bodily injury and property damage,and Workmen's Compensation as required by law. Owner shall name the City as an additional named insured on the Certificates of Insurance for Commercial General Liability Insurance, and upon request of the City, shall provide City with a certificate of insurance evidencing the foregoing coverages. 9. Owner Indemnity. The Owner shall indemnify, defend and hold the City harmless from and against all Claims commenced, incurred and/or paid by or against the City to the extent the Claims arise from the design,construction,installation,operation,use,maintenance,repair and/or replacement of, or the failure to properly design, construct, install,operate,use,maintain,repair and/or replace,any Owner Improvements by the Owner. Notwithstanding anything to the contrary contained in this Agreement,the obligation of the Owner to indemnify,defend and hold the City harmless as set forth herein shall not apply to the extent any such Claims arise from the gross negligence or willful misconduct of the City, any successor or assign of the City,any City Grantee,and/or the general public. 10. Liability Limitation. The Owner, pursuant to and in accordance with the terms and conditions of this Agreement, makes the Easement Area available to the public free of charge for outdoor recreational purposes. Accordingly, to the maximum extent permitted by law, Owner may avail itself of the limitations of liability afforded pursuant to Section 375.251, Florida Statutes,to the fullest extent applicable to the Easement Area. 11. Ad Valorem Taxes and Assessments.The parties acknowledge that the Easement Area historically has been used and controlled by the City as a public right-of-way and,therefore,has been exempt from ad valorem taxation and assessments. As this Agreement is intended to ensure the continued use of the Easement Area solely for public purposes,the City covenants to cooperate with any efforts by the Owner to exempt the Easement Area from ad valorem taxation, by providing documentation to Owner,as may be reasonably necessary,to evidence the public uses of the Easement Area. Notwithstanding the foregoing, Owner shall be solely responsible for the payment of any ad valorem taxes or assessments, if any,with respect to the Easement Area. 12. Mortgages and Encumbrances.This Agreement is made subject to,and with the benefit of, all matters of record. To the extent the Easement Area is presently encumbered by a mortgage, Owner agrees to request that its mortgagee join in and consent to this Agreement and subordinate its mortgage lien to the easements granted herein. In addition, the Owner hereby reserves the right, for itself and its successors and assigns,to encumber all or any portion of the Easement Area, at any time and from time to time,with one or more mortgages,deeds of trust,or other financing instruments.Any mortgage hereafter encumbering or otherwise affecting any portion of the Easement Area shall at all times be subject and subordinate to the terms of this Agreement(and any modifications thereto, from 6 time to time), and any party foreclosing any such mortgage, or acquiring title by deed in lieu of foreclosure, shall acquire title subject to all of the terms and provisions of this Agreement (and any modifications thereto, from time to time).No breach of the provisions of this Agreement shall defeat or render invalid the lien of any mortgage made in good faith for value covering any part of the Easement Area and any improvements thereon. 13. Assignment. The City may, in its sole discretion,transfer or assign this Agreement at any time only to a successor municipal corporation, provided, however,that nothing herein shall be deemed a limitation on City's or any successor municipal corporation's right to permit its invitees,agents,employees, licensees and the public to use the Easement Area in accordance with this Agreement.The Owner's sale or transfer of the Benefited Land and Easement Area as a unified site shall act to transfer the benefits and obligations of this Agreement to the Owner's successor. All other transfers, assignments,and delegations are prohibited(and, if attempted, void)absent the other party's prior written consent, which consent such other party may condition or withhold in its sole discretion. A party completing any permitted transfer, assignment, or delegation will promptly provide the other party with a written instrument evidencing the completion of such transaction.Upon any transfer,assignment,or delegation completed in accordance with this Section,the rights and obligations of the party completing such transfer,assignment,or delegation will be binding only on such party's transferee,assignee,or delegatee,as the case may be,and the other party will look only to such transferee,assignee,or delegatee for performance under this Agreement. In the case of a transfer, assignment, or delegation to an organization of unit owners and/or parcel owners, the obligations of the Owner pertaining to such portion transferred,assigned,or delegated shall be binding only upon the organization of unit/parcel owners, and not upon the declarant or any particular unit/parcel owner, except to the extent otherwise specifically provided in the declaration governing such organization. 14. Enforcement. The rights, privileges, and remedies granted by this Agreement are enforceable exclusively by the City and the Owner.Nothing in this Agreement,whether express or implied, confers upon the general public any enforcement rights against the Owner.Notwithstanding anything to the contrary, neither party will be in breach of this Agreement, and no enforcement may be sought against a party through any means,unless such party(i)receives a written notice from the other party,detailing with specificity the ways in which such party is in breach of this Agreement,and(ii)fails to remedy such breach within fifteen (15) days from the date of such written notice, or, if the breach is susceptible to cure but cannot reasonably be cured within fifteen(15)days,then within forty-five(45)days from the date of such written notice,provided the breaching party promptly commences and diligently pursues the curing of such breach within the initial fifteen(15)day period. 15. Remedies. The parties may enforce the terms of this Agreement by injunctive relief, mandamus, and by any other remedies available at law or in equity, except for rescission, revocation or termination of this Agreement, or any other remedy which would deprive the public with the right to use the Easement Area in accordance with this Agreement.All rights,remedies,and privileges granted to any party under this Agreement are cumulative, and the exercise of any one or more such rights, remedies, or privileges will not preclude the exercising party from exercising any other rights, remedies, or privileges available to such party under this Agreement or at law or in equity. 16. Estoppel. The City will, no later than thirty(30)business days after a written request therefor by the Owner, by any of the Owner's mortgagees or lenders, or by anyone claiming by or through the Owner(including, without limitation, the Owner's successors, assigns, and transferees), and upon payment of the reasonable fees to cover the City's expenses for any third-party resources required to comply, issue a written estoppel certificate, in recordable form, to the requesting party, certifying as to any matter related to this Agreement that the requesting party may reasonably request 7 of the City,including,without limitation,(i)that this Agreement,or any particular paragraph or section of this Agreement specified by the requesting party, is in full force and effect and unmodified(or in what respects this Agreement is no longer in force or effect or has been modified);(ii)that all monies due and payable under this Agreement, if any, have been paid(or in what respects monies are owed); and (iii)that to the City's knowledge, the Owner is in compliance with this Agreement or with any particular paragraph or section hereof specified by the requesting party (or in what respects there is noncompliance). Such estoppel certificates will be binding on the City and its successors and assigns, and may be relied upon by the Owner, its mortgagees and lenders, and by all others claiming by or through the Owner. Notwithstanding the foregoing section or any representations in any estoppel certificates issued thereunder, City shall not be estopped as to matters to which it did not have knowledge. [EXECUTION PAGES TO FOLLOW] 8 IN WITNESS WHEREOF, the City has caused these presents to be signed, sealed, executed and acknowledged on the day of November 2019,in its name by its proper officials. CITY OF MIAMI BEACH, a Florida municipal corporation By: Print Name: Alina T. Hudak City Manager Print Name: STATE OF FLORIDA ) )SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of November 2019 by Jimmy L.Morales,as City Manager of the City of Miami Beach,a Florida municipal corporation. He is personally known to me or has produced as identification and who did/did not take an oath. NOTARY PUBLIC Typed or printed Name of Notary My Commission expires: Serial No.,if any IN WITNESS WHEREOF,the Owner has caused these presents to be signed, sealed, executed and acknowledged on the day of November 2019,in its name by its proper officials. BHI Miami Limited Corp, a Delaware limited liability company By: Print Name: Name: Wayne Landing Title: Director: Print Name: STATE OF FLORIDA ) )SS: COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this day of 2021 by Wayne Landing, as Director of BHI Miami Limited Corp., on behalf of the Company. He is personally known to me or has produced as identification and who did/did not take an oath. NOTARY PUBLIC Typed or printed Name of Notary My Commission expires: Serial No.,if any Exhibit"A" Legal Description of the Easement Area A portion ... Exhibit"B" Legal Description of the Benefited Parcels SUNCAY MAY 2021 • NEIGHBORS 'Nc CITY OF MIAMI BEACH CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARING VACATION OF THAT PORTION OF THE SOUTHERN HALF NOTICE OF PUBLIC HEARING OF 21ST STREET.GENERALLY LOCATED BETWEEN ORDINANCE AMENDING THE REGULATIONS PERTAINING APPROXIMATELY 150 FEET EAST OF COLLINS AVENUE AND TO RM 3 OCEANFRONT GROUND FLOOR AND ROOFTOP MIAMI BEACH DRIVE,AND CONSISTING OF APPROXIMATELY 6,736 SQUARE FEET IN TOTAL AREA ADDITIONS IN THE ARCHITECTURAL DISTRICT MAY 26,2021 CITY COMMISSION MEETING MAY 26, 2021 CITY COMMISSION MEETING Da May 16 202' Me City of Mier,Beach will n ,a'Nand Comm,shon Mee.,rg DL',n4;:he!.yonn Comm,stron Mea..ng.the Coy Canmruwn veal ne enema.Memnt in a...IN duMnc.mar.nr n:a Or May 25.2021,the City of Mbar'had Beach tat host a K teen ConeT15sn.Mewing.Curing Me MAN C3nmtsy011 Comr.i.s.on Chr..bee Miami Bead,City Hen.1700 Cawent.en Center On..3.Flow.Mum.Beach FL M{eln4,m4 City Conw6ssice AI be OIytSitalty present n a WV"distanced manner r the CI.Clamber, 33139....le City sty!'attends the meeting.etTyy ly Apgwems and the public are encarra44d to attend me UMW Bead CO)NM,1700 Cmventor Carver Orals 3rd Floor.Miami Beach,FL 33134.0*City stall attends the meeeNg vrtu"(es PovWrd below) However members of the Public who.yAh to attend to maemp o• ',tell rbl Provide Pub.comment a,person maY appear r the Canons.,Chamber Members of to pa Mc are/when. 0 t:ily.App8t4nls and the public are encouraged W Art the mtetitng M'BiaM Uf wooded Ixbwl. to wear tecAI covennps and obawyi social 4.1.1.0.19.ca.sis4n'e.m CDC q.t..to or.Ire speed HCwMt,merrAes d Ito MIMIC Mrd wish to intend The'reeds%a trestle pubk ccenenom r perser may appear N et COVIO-IS the Cc nnessim Chamber.MOnbeS a the pobk are'eoubca to wra+Ya2ai cOovVtg&aro Observe scdal tes:aATTOM Te pa'hciBate 0'provide comment Yetualty during to Commits/eh Meet,n4 me pubs may P.in me webinar a: mnsutanl with CDC guidance le IbnO the spread of LOV1U 19. II /JInarYMaMibgAn pwr_ua4LB1342B57{j.1 r vu telephone at t.301 715 AS91 td,SI or Bag 475.4499 ;o W.Cdpatt or{novice carmen:s6loaly oaring the Commission M4n1Y•q,the pubic may or the wesmar at, Res Fr..I.Web...er ID.$r392B57671• M.r.tie..d the pubs wamNo W,peak yi•ooaey on.n rum d..'rno the LIGLAIleetheedtjagjeffaXaSlateitian a via te•mhore at 1301.715.8592;US a 999 475 4499(TO metnn4.muse COO the'.era rayed tV" tone the Zoom yeo ter pass'9 On to telep.ory to nose tn.nand Free;Web!na;D.813923575718 MADDers O1 the Put16C ranting to speak o6tualN Cr a1 Oen string IEC meet% NOTICE IS HEREBY GIVEN :nit the+orbwv.9 Pubee Hering hot ye herd by:he Mayor and City CPmmltponert o'the City or Mum.Beach FlorWa.on M 26.2021.•5.03 a..., may CIO -f ale/we�Icor 0,44rg h 2OWI app a Owe*'9 m pte tekpbere t0 WU ITV nand May p.m.p n thp.a.ner as the ma Iler can be h.. MICE l9 NEIEIT CtWV that to'0lCMrg Public Hering me Le head be the NOW and qty Commhytners of**City Lcsa p.m Saud.atead.oa Public HeutaB d Miami Beach,1IO'Ida,cm by 1L 2921 at 5:921,•,eras sow Iereabn as the mann an Oe beard ARESOLU'IONOFTHEMAYORANDCITYCDMMSSIONOF'HECITYOFMIAMIBEACH,FLORIDA.APPROVING Wis.WAMedal Palk dig& ( ON SECOND READING/PUBUC'TEARING DF THIS RESOLUTION.THE VACATION OF THAT PORTION OF THE R64"3 CCEANFRONT GROUND FLOOR AND ROOFTOP ADORIONS IN THE ARCHITECTURAL DISTRICT SOUTHERN HALF OF 21ST STREET.GENERALLY t OCATEO BETWEEN APPROXIMATELY 150 FEET EAST OF AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA AMENDING COLLINS AVENUE AND MIAMI BEACH DRIVE.ANO CONSISTING OF APPROXIMATELY{.136 SQUARE FEE T IN THE:AMO DEVYLOPMEN I REGIA ATIONS Of THE COOS OF THE CITY Of MUAO BEACH BY AMENDING CHAPTER TOTAL AREA.45 MORE PARTICULARLY DESCRIBED IN EXHIBIT-A TO THE MEMORANDUM ACCOMPANYING THIS RESOLUTION(THE ROW'I 'N FAVOR Of THE ABUTTING PROPER-,OWNER.Bill'METED MIAMI 142.'ZONING DISTRICTS MID RE{sU,ATIONS'ARTICLE I,-DISTRICT REGULATIONS"'CIYESION 1-RESIOENT'.AL CORPORATION(THE'APPLICANT(,PURSUANT TO SECTION 103(3);4)OF'HE CITY CHARTER:FURTHER. Mtn TIEAMILY DISTRICTS,"SUBDIVISION N,'RM 3 RESIOENTIAL MO T1FMAI Y_HIGH NTENSI'Y,' SECTION PROVIDING.THAT THE VACATION OF THE CITY ROW SHALL BE SUBJECT TO AND CONDITIONED UPON THE 142246,-DEVELO9McNT REGULATIONS AND AREA REQUIREMENTS:TO CREATE ADDITIONAL REGI;LATIONS APPLICANT S DELIVERY OF CERTAIN PUBLIC BENEFRS TO THE CITY.INCLUDING A VOLUNTARY MONETARY REGARDING GROUND FLOOR ADDCT)ONS. AND BY AMEN3ING ARTICLE N, 'SUPPLEMENTARY DISTRICT PAYMENT IN THE AMOUNT Of 51.40000000 A MAINTENANCE AGREEMENT PRONGING FOR THF REGU,ATh7NS, IIM$l .5'HEIGHT REGLUITX)NS.'SECTION I42-1151.'HEIGHT REG4_ATION EXCEPTIONS." INSTALLATION AND PERPETUAL MAINTENANCE Of AODITTONAL LANOSCMRNG WITHIN THE CITY S BEACH TO CREATE AOOITTOYAL REGULATIONS REGARDING ROOFTOP ADDITIONS FOR PROPERTIES LOCATED IN THE ACCESS AM)BEACHWA;X AREA EAST OF MIAMI BEACH DRIVE AS MORE PARTICULARLY DEPICTED ON EXHIBD'E''0 THE MEMORANDJM ACCOMPANYING THIS RESOLUTION.AND A PERPETUAL EASEMENT ARCHITECTURAL DISTRICT;PROVIDING FOR REPEALER,CODIFICATION.SEVERA80.I S AND AN EFFECTIVE DATE. IN FAVOR OF THE CITY OVER THE ROW.TO ENSURE CONTINUFO PU9LIC USE OF THE ROW FOR COY Pas OrdeaTce6yMig heard yt:rt/anlMSeChArT 118.1640/the Llys land Derebpmwd Code ergrerles may be ACCESS PEDESTRIAN AND VEHICULAR TRAVEL ANO UTILITIES FURTHER WAIVING.BY S 7TH VOTE, *err.erd fp the Planta,DepatTmenl x305.6137550 COMPETITIVE BOOING REOUPEMENT PURSUANT TO SECTION 6239 DF THE CITY COOS.FeIOWG SUCH INTERESTED DOTES are sweet le,eke pa:n;IIs mee0+12 Cr be reEesersed by r agent The gook may{pap WAIVER'O BE IN THE BEST INTEREST OF THE CITY Ohio ReroNru7nu Oeug hoard prevent 10S.enon 4166"04t wnnw comments by sendingaee.ea11 l0:G.itvCUrHdenIamlbeactl DD 6y 5.00 p.I.The Pion S n.pur.ea they 0.dee Et./to the OMs e/the Cote Attorneyar 705,67,77470 Ydanolblthe GNCA eC IC the Meepng.Please Identity rite Agenda;ten Number In tht mai suaect re.Ems's received nil be law•oec to:he INTERESTED PARTIES re"wad to'ate pe,1 M rhe meereg et be eepresemed by an save The public may Cuban.,wrist,comment.er sendng.n er..a4 te_resmaressmia'r,.,.arnn stmt M 5.00 Pm the d.y 0.401.lee Maw aft yuMysilere,s and tMl x,rndudeC as a pr.,o'71t meeting incl. City Comm,owoe Meeting.Please Mennly the Agenda Item Nome..4'me Tinsel subiacr kine Frt..starved who! 040,9 Ol ABtnCa)ten;are neer*tOr outset IefpeCiOl a[ t iLT.06 lbearnr- ]ODiI wlotvfan/-rtvtk•k/ be r0.wrtled t0 the Mayo.end Ccmnyss.onV,and.eel be included as a part of it,.meeting record. 336 da'alordeecna wclpt•21 TMs meeting.er any Item thtrtdn,may be ContaNea,and under such QrcumsIances, Lep..o!*panda tum.a,.Amenable fur puo!.c v..p.000.'at hoops//www rmar"be.chT devic,I euh/ultrtle.k/ addnenal!tea:netts.'reed REDO Pr7.4aet. abende'arehenerharma.R-20 TN.meeting.or anv herr;'Chen.0,4Y be<0 Mrupd and under sucn cu<umsta.Kes. Pursuer!S Saar 2160'05,Fla.Stal.the City he•IDy advises me public that,I a RPrs6'1 060.615 TO agpeai 119 adehuonai legal note.need not be mon.d.d white nage by 74 CAN Comn.sytr with respM to any matter considered at its meting Or M burns.such DerSOn Pu'.uanl:o Section 296.0105.Fla.Stn..the Coy hereby nines the pub.mal d a over dec,de.to eppeat must Mau•!But a attar,record OI_".e roteed'gs is made,yMCh'ectad Irk dudes 3-i lose''"and evident e upon anv dec?a.un made by It City COrPleeeoe with•11.00.110 MOW matter<Pn.t..d at it.mettig w rte!Thin; s-.ch'Tenter mnLI en...that a ve.bawn record w:hie reccee0. e w Tad;nd_d4I M•team.'1 Old Me vocal G 10.bases T1:R Tn01r¢does not GolnsDh:te Ca6Ctr1 bl'tiY LRy la the Introduction of aarn+SYOr 0' Wit,.made and enders<e opo,...Nee Inc appeal.a 10 be based Thi.nuns.duo n-,I cunsTi!ule nun..rt by thy City kr thin Ute+vest'rdtm'SAOIC Or I"ele aM 0.4000.ho'does',i 7u7.aUe chalk-ass 0'dppedli POI 5Ol4n'Mse MONK✓0.1.. nooduc*.n 6'admission d 011,0,v..a.inadmis.Mi 01 O'eitreer endence.no.doe.n 10#,00:.,chenenges o' TO RRuest this malenal in alternate'anat.sllpt lapuage elapses,(IbeOay fOOce.egMledl igaG,MIBe m access appeals twin otherwsa Mewed by taw Nr perSeet 4115,El5a$5.Res,and/p'any aWanonOdanm IC review any OCLomenl a parnicipatt in any C9ysporsoret To..R...t 1^a matrui n.tIwnaa b.+•:non tara..ab.nM•Pmr ilo*day novice iearetlt nlrm.hon m access 401 persons iota asab45.e,and/or any aoaonaoda.oe a'awew any doarnent a genic pate in Env Ch1-rponw'ne Re«mss a9 305 604 1499 and saNct b la Erlich a 2 bin Sorer.then tow 6,T'Y'sea may WI via 711 p oceed.rtg4! s d 305.604 2489 and•Nett ter FngNel.a 2 be Span..,Mar mbar,ber,6 r•y,..roc may call 0. Mem'!112Y Se'YiCel 71,(fit..d.Relay S.'.-c.1 The toy Canrraapn Merril w4 Se Yoadcast We m Mame Beach TV 108TV),viewable 5"the CBCs webste a: ;hit Goy Commssion M.etu.g.veli be broads.lin on Mum.Be.ch TV IMBTVI w•wade en the City s w.bNtc et httosl,levee"f+amnnra-ne.mylnwnmuM!mMvi,as*MI as on Aurae Broadband Cable:navel EAT,AT&T Uvesr .../1ww lanom.aaelll'oby/oonnTIQ!fntJrMty(as well as on Atlantic Broadband Care channel 660.AT&T rba'nel 99,Hbtwve Communia:004 CharnI 395.art ROKU Write or PEG.TV dWarnel,aId on social media at LI-verse cna,.n.i 99.Het..Commvn,cation,Chan'.)395 and ROES dent:.on PEG TV channel arse an soc,at LOOt ',aN•..fac_6cck_:^.,dtrdmtamiDeatl+ mttl4 a:500,//wvailac11101<o-r,ty^•:m.a TaLY;al Read E.eranado C ,Clete BEACH Read'E.Grenada,City Clerk MIAinti'1,iBEACH City of Men.Beam &nabeachh ate GlnCI rt.muml acn.I 100 305E73 7411 oy 3D5.672]11' 4D:0126202104 13 0526207'.43 Page 345 of 358