99-23028 RESO
RESOLUTION NO. 99-23028
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE A THIRD AMENDMENT
TO GROUND LEASE BETWEEN THE CITY AND MIAMI CITY BALLET,
INC. (BALLET), FOR THE PROPOSED PERMANENT FACILITY FOR
THE MIAMI CITY BALLET TO BE LOCATED IN THE COLLINS PARK
DISTRICT OF MIAMI BEACH; FURTHER AUTHORIZING THE CITY
MANAGER TO EXECUTE A LETTER OF UNDERSTANDING BETWEEN
THE CITY AND THE BALLET FOR STAGING AND PARKING FOR THE
DURATION OF CONSTRUCTION OF THE BALLET FACILITY.
WHEREAS, on April 13, 1994, the City and Miami City Ballet, Inc. executed a Ground
Lease Agreement for a proposed permanent facility for the Ballet on a certain site located near the
City Center of Miami Beach (Designated Site); and
WHEREAS, on June 18, 1997, the Mayor and City Commission approved Resolution No.
97-22420, amending the Ground Lease Agreement by changing the location of the Designated Site
for the proposed permanent facility for the Ballet to one located in the Collins Park District of Miami
Beach (New Site); and
WHEREAS, on October 21, 1997, the Mayor and City Commission approved Resolution
No. 97-22574, amending the Ground Lease Agreement by identifying and designating the site for
the proposed Miami City Ballet permanent facility within the aforestated area; and
WHEREAS, the City and the Ballet have now negotiated a Third Amendment to Ground
Lease, further clarifying certain terms and conditions of the Ground Lease Agreement, as well as
establishing the formal legal description and survey identifying the site; and
WHEREAS, additionally, the Administration would recommend that the Mayor and City
Commission authorize the City Manager to execute a Letter of Understanding between the City and
the Ballet requesting use of two public parcels for staging and parking for the duration of the
construction of the Ballet facility.
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 approve and authorize the Mayor and City Clerk to execute the Third Amendment to
Ground Lease between the City and Miami City Ballet, Inc., for the proposed permanent facility for
the Miami City Ballet to be located in the Collins Park District of Miami Beach, said Amendment
attached as Exhibit "A" hereto, and further authorize the City Manager to execute a Letter of
Understanding between the City and the Ballet, attached as Exhibit "B" hereto, for staging and
parking for the duration of construction of the Ballet facility.
PASSED and ADOPTED this 6th day of
January
,1998.
~j};1
MAYOR
JXur fcu~
CITY CLERK
RJAlkw
F:IA TTOIAGURIRESOSIMIABALGL.LOU
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~y '>lv-1fJ
City Atto, Dat.
2
~ITY OF MIAMI BEACH
:ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
ltlp:\\ci.m iami-beach. fl. us
COMMISSION MEMORANDUM NO. 37-99
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: .January 6,1999
FROM:
Sergio Rodriguez
City Manager
,.
SUBJECT:
RESOLUTION OF THE A YOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE A THIRD AMENDMENT TO
GROUND LEASE AND CONSTRUCTION AGREEMENT BETWEEN THE
CITY AND MIAMI CITY BALLET, INC.; FURTHER AUTHORIZING THE
CITY MANAGER TO EXECUTE THE ATTACHED LETTER OF
UNDERSTANDING THAT ADDRESSES CONSTRUCTION PARKING AND
STAGING.
RECOMMENDATION:
Adopt the Resolution
BACKGROUND:
The Ground Lease between the City of Miami Beach and the Miami City Ballet (MCB) was
originally approved on April 13, 1994. On June 18, 1997, the City Commission approved the First
Amendment to the Ground Lease between the City of Miami Beach and the MCB changing the
designated site to a portion of the property intended for the Cultural Campus adjacent to Collins
Park.
At the October 21, 1997, City Commission meeting, a Second Amendment to the Ground Lease
between the City of Miami Beach and the MCB was approved. This amendment waived permit fees
and addressed the construction agreement and recognized the need, at a later date, to revise the
parking agreement established in the original Ground Lease.
The original ground lease provides, through Section 27.02, for the City to "provide, at a discounted
rate that is less than fair market rental rate, one hundred (100) parking spaces for utilization by the
officers, directors and employees of Tenant (MCB). The parking spaces shall be made available
through the issuance of a monthly parking pass and shall be located on property owned by the City
of Miami Beach in any garage or other parking facility located within one thousand (1,000) feet from
the perimeter of the land."
DATE
Rl8
\ -L:,-9.:i
AGENDA ITEM
The City Commission memorandum dated October 21, 1997, recognized that the original Ground
Lease provided parking at a discounted rate. However, since the proposed garage would be built
utilizing tax exempt parking bonds, the City's Bond Counsel advised that the lease would need to
be amended to reflect that parking rates must be based on fair market value, so as to not jeopardize
the tax exempt status of the bonds. The memorandum went on to state that a future amendment to
the Ground Lease would be required to address parking.
To that end, in December 1998, the Administration and City Attorney's office submitted revised
parking language to MCB to be incorporated in this third amendment to the Ground Lease. The
proposed revisions remedied the concerns previously expressed by Bond Counsel and eliminated any
potential challenge to the tax exempt status of the bonds. Effectively, the proposed revisions
provided for 100 discounted parking spaces if taxable bonds (as opposed to tax-exempt bonds) were
utilized to develop a garage or other parking facility on land acquired with taxable bonds. The
proposed language was not acceptable to MCB as they were unwilling to relinquish their rights to
discounted parking, at this time. Failure to amend the agreement to incorporate the proposed
revisions could jeopardize the tax-exempt status of the bonds and could be subject to substantial IRS
penalties.
MCB's unwillingness to revise the parking language in the the Ground Lease, has been exacerbated
as a result ofthe City's recent decision to postpone, indefinitely, the development of a parking garage
at the Cultural Campus site. Instead, the City is implementing a plan to develop surface parking lots
to meet the library's legal parking requirements and the public's parking needs. Preliminarily, the
surface lots, as indicated by the City's architects, Robert A. M. Stem, will consist of approximately
79 spaces that will be utilized to meet the library's legal parking requirements.
Therefore, MCB is unable to utilize any of the proposed surface parking spaces to meet its legal
parking requirements. The zoning analysis of the MCB facility indicates that 76 spaces are required
to be in compliance with the zoning ordinance. For MCB to meet its legal parking requirements, the
MCB would have to obtain 76 new off-street parking spaces or pay a parking impact fee of $5,000
per space, or combination thereof. MCB acknowledged that they are obligated to meet their legal
parking requirements in a letter provided to the City, dated September 4, 1998, that accompanied the
issuance ofMCB's building permit.
While the City can still technically comply with the existing parking clause in the original lease by
providing 100 spaces at the Collins Avenue and 21st Street parking facility, which is within 1,000
feet of the MCB building, these spaces will not meet MCB's legal parking requirements pursuant to
the Zoning Ordinance nor will they resolve the concerns expressed by Bond Counsel.
Despite legal parking requirements that MCB must comply with, it is important to note that the City
has made significant contributions to the MCB over the past four years:
. Provided land at no cost to MCB for their new facility at the Cultural Campus.
. Advanced funding of the $2.5 million grant approximately ten months prior to possession
date, as originally provided in the Ground Lease. The MCB has had the full benefit of the
interest earnings thereon.
. Reviewed and reduced the legal parking requirements from 109 spaces to 76 spaces.
. Recommending approval of MCB's use of parcels 2 and 4 as a construction staging area at
no cost.
. Continue to provide discounted parking spaces for MCB at their current location on Lincoln
Road.
. Parking Impact Fee assessment will be $5,000/space vs. $15,000/space because MCB is
governed under the former provisions of the Zoning Ordinance.
ANALYSIS
Currently, the Commission is being requested to approve a Third Amendment to the Ground Lease
and the Construction Agreement. The revisions to the Ground Lease do not address parking but
provide a legal description of the leased premises. The legal description is required by MCB's lender
to obtain financing and by the bonding company to provide a payment and performance bond as
required in the Ground Lease. The Third Amendment addresses the following:
1. Formally establishes the legal description of the property under lease to the Miami City
Ballet.
2. Recognizes April 13, 1994, as the lease execution date.
3. Includes a revised construction schedule
4. Confirms that all terms of the Ground Lease Agreement dated April 13, 1994, as
amended, that are not specifically amended by the Third Amendment, remain binding.
The above items will allow MCB to obtain financing and proceed with contruction of their facility.
MCB is aware that the City proposes to revise the parking language in the existing agreement and
has agreed to cooperate to resolve the outstanding parking issues. In the September 4, 1998 letter
provided to the City, MCB acknowledged their obligation to meet their legal parking requirements
prior to receiving a certificate of occupancy.
Additionally, the Ballet is requesting the use of two parcels, currently under ownership of the
Redevelopment Agency, for staging and parking for the duration of the construction of the Miami
City Ballet building, in accordance with the terms identified on the attached correspondence, entitled
Letter of Understanding (EXHffiIT A). The Administration recommends approval of the proposed
use ofthese parcels for a staging area and construction parking to minimize the impact on the public
right of way.
CONCLUSION:
The Administration recommends approval of the resolution authorizing the Mayor and City Clerk
to execute the Third Amendment to Ground Lease and Construction Agreement between the City
and Miami City Ballet, Inc. and authorizing the City Manager to execute the Letter of
Understanding.
SR:C~~jph
THIRD AMENDMENT TO GROUND LEASE
THIS THIRD AMENDMENT TO GROUND LEASE, is made as of the"" day of
CT"lINu..".,'1 ' I 99f!by and between the CITY OF MIAMI BEACH, a Florida municipal
corporation (Landlord or City) and MIAMI CITY BALLET, INC., a Florida not-for-profit
corporation (Tenant or Ballet).
WITNESSETH:
WHEREAS, on April 13, 1994, the City of Miami Beach and Miami City Ballet, Inc.
executed a Ground Lease Agreement for a proposed permanent facility for the Ballet; and
WHEREAS, the City and the Ballet have herein negotiated the foregoing Third Amendment
to Ground Lease, specifically identifying and designating the site for the proposed Miami City Ballet
permanent facility, and further clarifying certain terms and conditions of the Ground Lease
Agreement.
NOW THEREFORE, in consideration of the premises and other good and valid
consideration, the City and the Ballet now agree to amend the said Ground Lease Agreement as
follows:
I. The Recital of the said Ground Lease Agreement shall be amended to read as follows:
Landlord, in order to create a significant educational and cultural facility for the use and
enjoyment of the general public and for and in consideration of the covenants hereinafter made by
Tenant, and the covenants and agreements hereinafter contained to be kept and performed by Tenant,
does hereby agree to use its best effort, to acquire the fee 0\\:fl.er3hip of that certain realpfoperty
described in Exhibit '?.." attaehed hereto and made apart hereof, located in the Cit)- ofMia.mi Deaeh,
Miami Dade County, Florida, and, subjcet to such aequisition, Landlord agrees to demise, lease and
let unto Tenant for the terms and upon the conditions hereinafter stated, a site located v;ithin the said
that certain real property, described in Exhibit "A" attached hereto and made a part hereof. ttrbe
ffi:I:ltuall) agreed on b)' Landlord and TenBftt, together with all appurtenances to such land, including,
without limitation, all vegetation air rights, easements, rights-of-way or appurtenances to be acquired
by Landlord and held in connection with such land, and all rights Landlord shall acquire in and to
any streets, sidewalks, alleys and land lying in the bed of existing or proposed streets adjacent to
such land (collectively, the "Land"), for the Term (as defined in Section 2.01) subject to the
covenants, agreements, terms and conditions hereinafter set forth, to each and all of which Landlord
and Tenant mutually agree.
2. Pursuant to Section 1.05 of the Ground Lease Agreement, the City and the Ballet herein agree
that the "Lease Execution Date," as defined therein, shall be April 13, 1994.
3. Construction Schedule. Paragraph 19(c) of the Second Amendment to Ground Lease and
Construction Agreement, dated October 21, 1997, shall be deleted in its entirety and replaced with
the Construction Schedule, attached hereto and made a part hereof as Exhibit "A-I."
4. All terms of the Ground Lease Agreement, dated April 13, 1994, as amended, that are not
specifically amended by this Third Amendment to Ground Lease shall remain binding on Landlord
and Tenant.
IN WITNESS WHEREOF, Landlord and Tenant have caused these presents to be executed
the day and year first above written.
WITNESSES:
C. ---.
J~~ j~1 C2t
N e: S/JrNL)(!-1>f \(2..0) IlLCl
LANDLORD:
CITY OF MIAMI BEACH, a Florida
municipal corporation
1/1
By:
Neisen Kasdin, Mayor
)
ATIEST: ~l.(:r ~JA.=-
City Clerk
TENANT:
WITNESSES:
ITY BALLET, INC., a Florida
rofit corporati<J1l1
\
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N~~:~:t[):_r
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{ "'~ ~^"" \ f> f'
t....Name: .tL~ ~\.t..V'~ ,LA "~: .. or
ATTEST:~c\l;~'~) ~ ~t<M-\\~
Secretary ~
By:
~
1
RJAlk.w
F:\A TIO\AOUR\AOREEMN1\MIABALOL.~AM
( APPRO ED AS TO
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LETTER OF UNDERSTANDING
THIS LETTER represents the understand between the CITY OF MIAMI BEACH
("CMB"), the CITY OF MIAMI BEACH REDEVELOPMENT AGENCY ("CMB/RDA"),
MIAMI CITY BALLET, INC. ("MCB"), and MCB's general contractor STOBS BROTHERS
CONSTRUCTION ("STOBS") for the following purpose.
WHEREAS MCB and STOBS desire to secure the use of the Fruit Stand and King sites
(respectively the SW and SE parcels at the intersection of Liberty A venue and 23rd Street on
Miami Beach) for use as additional construction staging area and crew parking respectively, for
construction of MCB's new facility, the following terms and conditions are agreed to:
1. MCB and STOBS will use the Fruit Stand site as an additional staging area for the
construction of its new facility at 2200 Liberty Avenue. (See attached map.)
2. STOBS will secure the site with a fence and MCB will pay for the fence.
3. STOBS can use the Fruit Stand site building for storage, but must secure the building and
be solely liable for any contents placed therein.
4. In order to protect the environment and not add to existing contamination, STOBS will not
break the concrete or asphalt nor allow the same to be broken.
5. The King site will be used for parking by STOBS, except for 10 spaces which will be
allotted to the Bass construction project. (See attached map.)
6. CMB, MCB and STOBS will not be liable for any damage to any vehicle parked on either
site.
7. MCB will expand its Builders Risk insurance policy to cover these two sites.
8. The commencement date for use of both parcels will be January 7, 1999.
9. With 30 day written notice by CMB to MCB, MCB and STOBS must temporarily
abandon either site in order for the CMB to demolish the structure on either property.
10. Both sites will be surrendered by MCB and STOBS at the substantial completion of MCB's
new facility, but in no case later than September 15, 1999, or at the request of CMB/RDA.
- Page 1 of 3 -
y
it
MIAMI
Clry
~AllLr
EDWARD VILLELLA
ARTISTIC DIRECTOR
Florida's
[lItenlluiolllllly-
Acclllirlll'd
DilllCl'
Complll/Y
'J ....., r ' 1 ~
005 LINCOLN ROAD MIAMI 8EACH, FLORIDA 33139.2601 (305) 532.4880 FAX, (305) 532.2726 E.MAIL mcballet@dcfreenet sellin lib II.us
T FTTFR OF AnRFFMFNT. rMR rMR/RnA MrR lmrl ~TOR~ ('nntinl1l"rl
pllgl" ') nf ~
11. The CMB represents that the CMB/RDA owns both parcels and can grant this temporary
use.
The above items constitute the full and complete understand between these parties for the
temporary use of these two properties.
AGREED TO and ACCEPTED:
For the City of Miami Beach
and Redevelopment Agency
Dale:
For Stobs Bros. Construction
Sergio Rodriguez
~~\ --
\R eft Stobs ~
llie~~
For Miami City Ballet
~~ <; ..\ ...
Barbara Singer T
Dale: 6 ~ (~ AC\J
c: Kahn-Carlin & Company, Inc.
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PARK AVE~UE
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