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2004-25548 Reso
City of Miami Beach - City Clerk's Office Folio Version 217 April 14, 2004 Commission Meeting I REGULAR AGENDA/R9 - New Business and Commission Requests 4:00:08 p.m. SUPPLEMENTAL MATERIAL - (Additional Materials) R9G Discussion And Review Of The Proposed Purchase Of The Property Located At 1833 Bay Road, Miami Beach, Florida. (Economic Development) o,-~ P_,-',=c'--'=c.~ ~ ~ ion 2004-25548 adopted as amended. March 3, 2006 it was determined that a ~ n ~ded. See Resolution 2005-25793. Motion to purchase the prope?~,~[ ~ 2ric~ mRdP. hy Commissioner Bower, sedco)_ nded by Vice-Mayor Gross with ~ amer;dment by Commissioner Steinberg [o u~ u,-,,~3[,3,",atod fu,qdc; ~allct vctc.: ~pposed: Commissioners Cruz, Smith and Garcia. Christina Cuervo to handle. Joe Damien, Asset Manager, introduced the item. Harold Rosen, Esq. spoke. Tamra Sheffman spoke. Vice-Mayor Gross stated that the question is at what price can the City buy; at the option price of the right at first refusal price. Jorge Gonzalez, City Manager, stated that the City cannot lose by buying this building. The price is within the market price and it is in an industrial area; this property could be used or sold in the future. Commissioner Steinberg stated that he does not agree using parking funds to buy this property. Jorge Gonzalez, City Manager, stated that buying this property does not jeopardize any planned project that the City has today for the Parking Fund. He explained that if the City took all of its parking needs today, there is not enough money to meet them all. He stated that the Parking Fund is a legitimate and appropriate use for this facility but if the City Commission does not want this, he could be instructed to find a different source of funds and his choice would be the Undesignated Fund Balance which can also be used to buy property since it is not a recurring expense. He stated that the Parking Fund (off the top of his head) has about $20 million in Retained Earnings, and about $19 to $20 million in bond proceeds. The Undesignated Fund Balance is about $19 million. Commissioner Cruz stated that he would have to know what the long-term goals are for this property because he does not see the need for it. Jorge Gonzalez, City Manager, stated that if the City needed to find three industrially zoned parcels on Miami Beach, beyond this there are none. This gives the City the opportunity to acquire three industrially zoned parcels for a trade's yard, a garage, a joint development of a garage with offices above it. He stated that there are things that could be done with this Prepared by the City Clerk's Office Date Printed: 3/3/2006 Time Printed: 5:29:45 PM Source Database: C:\Data\folio4.2\Clerk217.nfo City of Miami Beach - City Clerk's Office Folio Version 217 property and the City being the adjacent owners are the more logical owners. It could possibly be used to move the Property Management Division. Handout or Reference Materials: 1. Ballots Prepared by the City Clerk's Office Date Printed: 3/3/2006 Time Pdnted: 5:29:45 PM Source Database: C:\Data\folio4.2\Clerk217.nfo CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.fl.us COMMISSION MEMORANDUM To: Mayor David Dermer and Date: April 14, 2004 Members of the City Commission From: Jorge M. Gonzalez City Manager Subject: DISCUSSION AND REVIEW OF THE PROPOSED PURCHASE OF THE PROPERTY LOCATED AT 1833 BAY ROAD, MIAMI BEACH, FLORIDA On January 31,2001, the Mayor and City Commission adopted Resolution No.2001-24250 approving a Lease Agreement between the City of Miami Beach (Tenant) and Gloria Miller- Rosenthal (Landlord) for continuing the use of the property located at 1833 Bay Road, Miami Beach, Florida (the Property). The leased Property, includes the first floor (approximately 3232 square feet) currently housing the City's Parking Department Sign Division, the second floor (approximately 3232 square feet) which have been used to accommodate certain Police Department operations, and the use of the rear yard (approximately 4,000+ square feet). The lease had a term of three years, commencing on February 1, 2001, and expiring on January 31,2004. In accordance with the direction received at the Finance and Citywide Projects Committee meeting of November 20, 2003, Police Department operations housed at the Property shall be relocated to the first floor, north wing, of Historic City Hall. Improvements to the Historic City Hall site were estimated to be completed by April 2004, which would extend beyond the termination date of the Lease Agreement. As such, and in light of the fact that the ultimate location of the Parking Department Sign Division has yet to be determined, the Administration began negotiating a month-to-month extension with the Property owner so the respective operations could remain on site until their eventual relocation. On February 4, 2004, the Mayor and City Commission, via Resolution No. 2004-25483, approved an amendment to the Lease Agreement, authorizing the City, effective February 1, 2004, to continue to lease the Property on a month-to-month basis on the following terms and conditions: · The City and Landlord acknowledged that the Leased Premises (which includes two floors), encompasses 6,464 square feet divided equally between the first and second floors, together with the surrounding land and parking areas. · The City agreed to pay the Landlord, as compensation for use of the Leased Premises, the sum of Ten Thousand ($10,000) Dollars per month, plus Five Hundred ($500) Dollars per month representing an increase in real property taxes and insurance (as reported by Landlord) for the years 2001 through 2003. · The City and/or Landlord may, at their sole discretion, without cause, terminate or discontinue the use of the first floor space or the second floor space or may terminate the entire month-to-month tenancy upon giving the other party sixty (60) days prior written notice of its intentions. Agenda Item Date · In the event that either party chooses to terminate the use of one of the two floors of the Leased Premises, then, in that event, the monthly rental shall be reduced accordingly to Five Thousand ($5,000) Dollars per month, plus Two Hundred Fifty ($250) Dollars per month for real property taxes and insurance. In addition thereto, if only one floor is being leased, the City is entitled to use only one-half of the surrounding land and parking spaces. Option to Purchase Due to the following conditions, the Administration deemed that it may be in the City's best interest to further consider the possibility of purchasing the property, an option already included in the current lease agreement: · The Property is located adjacent to two (2) City-owned municipal parking lots, and combined with same may provide the City with enhanced opportunity to develop the site, either on its own or via a public/private venture. · In the past the City has invested approximately $75,000 in improvements and upgrades to the property and the City has the opportunity to continue to take advantage of the improvements previously made. · There are certain accessibility upgrades that would be required if the City did purchase the building. As such, the City also negotiated an extended and more specific option to purchase which includes: · The City reserved the right to purchase the property, for $986,000; the amount equal to the average between the Landlord's asking price of $1,050,000 and the appraised value (see attached appraisal) of $922,000; o within the next six (6) months; or o until such time as the City notifies Landlord in writing of its intention not to purchase; or o until such time as the Landlord enters into a binding Purchase and Sale Contract for the sale of the Property with a pre-approved and qualified third party, with the City reserving the right to match the amount of said offer and purchase the Property, whichever occurs first. o in the event the Landlord enters into a binding Purchase and Sale Contract for the sale of the Property with a pre-approved and qualified third party, and the City does not exercise, its right to purchase the Property at that time and the Purchase and Sale is not consummated with said third party, the City's rights to purchase the Property shall continue as provided above. Except as herein delineated, all terms and conditions of the original Lease, dated January 31, 2001, remain in full force and effect. On March 23, 2004, the City received the attached contract for purchase and sale of the Property for $1,185,000. On April 6, 2004, the Finance and Citywide Projects Committee reviewed this item and requested the Administration to provide a cost estimate for any improvement(s) that may be required to bring the Property into compliance with any and all applicable codes, and further referred the item for full discussion by the Miami Beach City Commission. The Administration will provide the City Commission with a preliminary cost estimate at the April 14, 2004, City Commission Meeting. In accordance with the specifics referenced in the paragraphs above, under the heading "Option to Purchase", and given the time frame (April 15, 2004) within which the City needs to notify the Landlord of the it's intent to exercise its Option, the Administration is seeking direction regarding the possible purchase of the Property, located at 1833 Bay Road, Miami Beach, Florida. JMG:C~:JD:rlr F:~)DHP~$ALL~SSET~1833BAY~1833CCPurchase.MEM.doc CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beachfl, us OFFICE ASSET MANAGEMENTIBEACHFRONT CONCESSIONS Facsimile 305~-673-7772 Telephone 305-673-7193 March 26, 2004 Edward E. Levinson, Esquire ONE (1) PAGE Edward E. Levinson, PA SENT VIA TELEFAX: 400 Lincoln Road, PH Southeast 305-538-5504 Miami Beach, FL 33139 Subject: Lease Agreement (as amended) by and between Gloria Miller Rosenthal and the City of Miami Beach (City) for the Property Located at 1833 Bay Road, Miami Beach, Florida, Dated February 4, 2004 Re: Offer to Purchase 1833 Bay Rd, Miami Beach, Florida by Tamron Properties, LLC Dear Mr. Levinson: I am in receipt of your March 23, 2004 letter, as hand delivered by Ms. Miller Rosenthal, and greatly appreciate your promptly forwarding the above referenced Offer for Purchase for our review. However, the ten (10) day turn-around you seek to obtain the City's response is not viable, as City policy affecting this type of transaction requires certain approvals which cannot be obtained within the timeframe you suggest. As previously planned, this matter is scheduled to be heard by the City's Finance and Citywide Projects Committee on April 6, 2004, at which time direction will be sought from the Committee. Based on the Committee's recommendations, the matter will be forwarded, along with the Administration's recommendation on April 14, 2004, to the Mayor and City Commission for their action. A review of the provisions of the Lease Agreement, as amended, reveals that other than the sixty (60) day termination provisions, and the City's six (6) month option to purchase term, the Agreement is silent on the turnaround time related to the exercising of the City's option to purchase. As such, I respectfully request that you permit for the aforementioned public process, and allow until April 15, 2004; for the City to respond to the referenced offer. I thank you in advance for your consideration in this regard. If you have any questions, please do not hesitate to call me at (305) 673-7000, ext 6727. ~sset Manager JD:rd C: Christina Cuervo, Assistant City Manager Gloria Miller Rosenthal Harold Rosen, Esquire, Rosen & Switkes F:\DDHP~ALL~SSET~1833BAY~TamronOfferFor Purchase.doc LAW OFFICES F4)WA]~D E. LE's'~N$ON, P.A. PENTHOUSE SOUTHEAST 407 LINCOLN RC'AD TELEPHONE (305) ~-6171 March 23, 2004 ~EL~r~x eelpa ~earlhlink.net H~D DELIVERED City of Miami Beach 1700 Convention Center Drive Miami Beach, FL 33139 Attention: Jose Danien, Asset Manager Re: Lease Agreement, by and be~een Gloria Miller Rosenthal ("Landlord"), and the Ci~ of Miami Beach ("Tenant"), dated Janua~ 31, 2001, together with the Amendment of Lease Agreement dated Februa~ 4, 2004, in connection ~th the prope~ located at 1833 Bay Road, Miami Beach, Florida Dear Mr. Danien: These offices represent Gloria Miller Rosenthal, the Landlord under the aforesaid Lease Agreement, as amended. In accordance with Adicle 6 of the Amendment to Lease Agreement, I am delivering to you on behalf of my client a Commercial Contract covering the above property, wherein Tamron Progenies, LLC., a Florida limited liabili~ company and my client have entered into a Contract of Sale and ~ur~hase for the purchase price of $1,185,000.00. Attached to said contract is a leffer from Colonial Bank, N.A., the Buyer's lending bank, dated March 19, 2004, which confirms that'the. Buyer is pre-approved and is a qualified third pa~. Under the aforesaid Lease Agreement,: as ~mended, t~e ci~ of M}ami Beach has the right of first refusal to match the terms and conditions of said contract. Please advise the undersigned within ten (10) days of the date hereof of the Ci~s intention either to purchase the prope~ on the same te~s and conditions of the enclosed contract, or advise that the Ci~ has waived its right of first refusal Io purchase the prope~y. Thank you for your cooperation and cou~esy in lhis matter. EEUdlm Enclosure cc: Mrs, Gloria Miller Rosenthal Gend~eEers~is.l~ Receipt is hereby acknowledged of this letter and the Commercial Contract enclosed therein this ~ ~' ~ [ day of March, 2004 I C ~ OF MI~M~CH 30~E~I~, ~et Manager . Contract OF REALTORS® · ' 1, PURCHASE AND SALE: Tamron Properties EL(:: ("Buyer") 2' agrees to buy and Gloria Rosenthal, TR ("Seller") 3' agrees to sell the property described as: Street Address: 1833 Bay Rd, Miami Beach, F! 33139 5' Legal Description: Alton Beach Realty. Co .AMD PL PB9-146 Lot 10 Blk 13 6' Folio Number 02r3233-013-0110 7. and the following Personal Property: Inventory to be attached 8' o (all collectively referred to as the "Property") on the terms and conditions set forth below. The "Effective Date" of this Contract is to the date on which the last of the Parties signs the latest offer. Time is of the essence in this Contract. Time periods of 5 :~ days or less will be computed without including Saturday, Sunday, or national legal holidays and any time period ending on a ~2 Saturday, Sunday or national legal holiday will be extendea until 5:00 p.m. of the next business day. 13' 2. PURCHASE PRICE: $ 1,185,000.00 ~4- (a) Deposit held in escrow by Royal pnlm RealW Escrow $ l,OOO.O0 ~5- (b) Additional Oeposit to be made within 5 days from Effective Date $ 49,000.00 ~6' (c) Total mortgages (as referenced in Paragraph 3) $ 17' (d) Other: $ (e) Balance to close, subject to adjustments and prorations, to be made with cash, locally drawn $ 246,250.00 certified or cashier's check or wire transfer. 2o.3. THIRD PARTY FINANCING: Within 5 days from Effective Date ("Application Period"), Buyer will, at Buyer% expense, apply for 2~.third party financing in the amount of $. or ?5 % of the purchase pdce to be amortized over a period of 22'years and due in no less than __ years and with a fixed interest rate not to exceed []__% per year or vadable interest rate not 23- to exceedr'] % at origination with a lifetime cap not to exceed __% from initial rate, with additional terms as follows: current rates 24' 25 Buyer will pay for the mortgagee title insurance policy and for all loan expenses. Buyer will timely provide any and all credit, 28 employment, financial and other information reasonably required by any lender. Buyer will notify Seller immediately upon obtaining 27- flnandng or being rejected by a lender. If Buyer, after diligent effort, fails to obtain a written commitment within 30 days from 28 Effective Date ("Financing Period"), Buyer may cancel the Contract by giving prompt notice to Seller and Buyer's deposit(s) will be 29 returned to Buyer in accordance withT, aragraph 9. ac. Buye ) (. .) and Seller,/~_~ ( ) acknowledge receipt of a copy of this page, which is page 1 of 5 Pages. CC-2 © 1997 Florida Association of REALTORS~ All Rights Reserved 3t' 4. TITLE: Seller has the legal capacity to and will convey marketable title to the Property by [] statutory warranty deed 32' [-lother , free of lief~s, easements and encumbrances of record or known to Seller, 33 but subject to property taxes for the year of closing; covenants, restrictions a~d public utility easements of record; and (list a~y 34' other matters to which title will be subject) 35- ; 3~. provided there exists at closing no violation of the foregoing and none of them prevents Buyer's intended use of the Property as s?' Offices, retail 38' (a) Evidence of Title: Seller will, at (check one) [] Seller's [] Buyer's expense and within 5 days [] from Effective Date 39- I-Iprior to Closing Date I'~"lfrom date Buyer meets or waives financing contingency in Paragraph 3, deliver t0 Buyer (check one) 40' 17"ta title insurance commitment by a Florida licensed title insurer and, upon Buyer recording the deed, an owner's policy in 4t the amount of the purchase price for fee simple title subject only to exceptions stated above. 42" I~an abstracl of title, prepared or brought current by an existing abstract firm or certified as correct by an existing firm. 4.3 However, if such an abstract is not available to Seller, then a prior owner's title policy acceptable to the proposed insurer as 44 a base for reissuance of coverage. The prior policy will include copies of all policy exceptions and an update in a format 4.5 acceptable to Buyer from the policy effective date and certified to Buyer or Buyer's closing agent together with copies of all 46 documents recited in the prior policy and in the update. 47 (b) Title Examination: Buyer will, within 1 5 days from receipt of the evidence of title deliver written notice to Seller of title 48 defects. Title will be deemed acceptable to Buyer if (1) Buyer fails to deliver proper notice of defects or (2) Buyer delivers proper 49- written notice and Seller cures the defects within 5 days from receipt of the notice ("Curative Period"). If the defects are 5o cured within the Curative Period, closing will occur within 1 0 days from receipt by Buyer of notice of such curing. Seller may st elect not to cure defects if Seller reasonably believes any defect cannot be cured within the Curative Period. If the defects are 52 not cured within the Curative Period, Buyer will have 10 days from receipt of notice of Seller's inability to cure the defects to 53 elect whether to terminate this Contract or accept title subject to existing defects and close the transaction without reduction in 54 purchase price. The party who pays for the evidence of title will also pay related title service fees including title and abstract 5,5 charges and title examination. 5e (c) Survey: (check applicable provisions below) 57' [] Seller will, within 10 days from Effective Date, deliver to Buyer copies of prior surveys, plans, specifications, and .~' engineering documents, if any, and the following documents relevant to this transaction: cur~nt lease(s} 59' , prepared for Seller or in Seller's ~ possession, which show all currently existing structures. et- r~Buyer will, at I-]Seller's 1-¢lBuyer's expense and within the time period allowed to deliver and examine title evidence, 62 obtain a current certified survey of the Property from a registered surveyor. If the survey reveals encroachments on the ~' Property or that the improvements encroach on the lands of another, I--IBuyer will accept the Property with existing 64, encroachments []such encroachments will constitute a title defect to be cured within the Curative Period. ~ (d) Ingress and Egress: Seller warrants that the Property presently has ingress and egress. 66 (e) Possession: Seller will deliver possession and keys for all locks and alarms to Buyer at closing. ~' 5. CLOSING DATE ,AND PROCEDURE: This transaction will be closed in ]~]iami-Dade County, Florida on r~, or before the , __ or within ~0 days from Effective Date ("Closing Date"), unless otherwise extended ~' herein. [] Sellerr~ Buyer will designate the closing agent. Buyer and Seller will, within 15 days from Effective Date, deliver to ?0 Escrow Agent signed instructions which provide for closing procedure. If an institutional lender is providing purchase funds, lender ?~ requirements as to place, time of day, and closing procedures will control over any contrary provisions in this Contract. 72 (a) Costs: Buyer will pay taxes and recording fees on notes, mortgages and financing statements and recording fees for the deed. 73 Seller will pay taxes on the deed and recording fees for documents needed to cure title defects. If Seller is obligated to discharge ?~ any encumbrance at or prior to closing and fails to do so, Buyer may use purchase proceeds to satisfy the encumbrances. ?$ (b) Documents: Seller will provide the deed, bill of sale, mechanic's lien affidavit, assignments of leases, updated rent roll, ?e tenant and lender estoppel letters, assignments of permits and licenses, corrective instruments and letters notifying tenants of 77 the change in ownership/rental agent. If any tenant refuses to execute an estoppel letter, Seller will certify that information 78 regarding the tenant's lease is correct. If Seller is a corporation, Seller will deliver a resolution of its Board of Directors 79 authorizing the sale and delivery of the deed and certification by the corporate Secretary certifying the resolution and setting forth eo faots showing the conveyance conforms with the requirements of local law. Seller will transfer secudty deposits to Buyer. Buyer 8~ will provide the closing statement, mortgages and notes, security agreements and financing statements. ~2. Buyer(I~'~) (.__) and Seller (¢~.J~3 (__) acknowledge receipt of a copy of this page, which is page 2 of 5 Pages. 83' (c) Taxes, Assessments, and Prorations: The following ilems will be made current and prorated r~as of Closing Date , 84" I--las of : real estate taxes, bond and assessment payments assumed by Buyer, interest, 85- reRts, association dues, insurance premiums acceptable to Buyer, operational expenses and 86 If the amount of taxes and assessments for the current year cannot be ascertained, rates for the previous year will be used with due 87 allowance being made for improvements and exemptions. Seller is aware of the following assessments affecting or potentially ss' affecting the Property: 89 Buyer will be responsible for all assessments of any kind which become due and owing on or after Effective Date, unless the 90 improvement is substantially completed as of Closing Dale, in which case Seller will be obligated to pay the entire assessment. al (d) FIRPTA Tax Withholding: The Foreign Investment in Real Property Act ("FIRPTA") requires Buyer to withhold at closing a 92 portion of the purchase proceeds for remission to the Internal Revenue Service ("I.R.S.") il Seller is a "foreign person" as defined 93 by the Internal Revenue Code. The parties agree to comply with the provisions of FIRPTA and to provide, at or prior to closing, 94 appropriate documentation to establish any applicable exemption from the withholding requirement. If withholding is required 95 and Buyer does not have cash sufficient at closing to meet the withholding requirement, Seller will provide the neoessary funds 96 and Buyer will provide proof to Seller that such funds were properly remitted to the I.R.S. 97° 6. ESCROW: Buyer and Seller authorize Royal Palm Really Escrow ~' Telephone: f30~'t 674-0495 Facsimile: f30S'~ 534-5151 Address: 4600 Roval Palm Ave 99' to act as "Escrow Agent" ~o0'to receive funds ahd other items and, subject to clearance, disburse them in accordance with the terms of this Contract. Escrow m~" Agent will deposit all funds received in [] a non-interest bearing escrow account [] an interest bearing escrow account with m2' interest accruing to with interest disbursed (check one) [] at closing ~03' [] at intervals. If Escrow Agent receives conflicting demands or has a good faith doubt as to Escrow ~o4 Agent's duties or liabilities under this Contract, he/she may (a) hold the subject matter of the escrow until the parties mutually los agree to its disbursement or until issuance of a court order or decision of arbitrator determining the parties' rights regarding the ~o~ escrow or (b) deposit the subject matter of the escrow with the clerk of the circuit court having jurisdiction over the dispute. Upon ~o? notifying the parties of such action, Escrow Agent will be released from all liability except for the duty to account for items los previously delivered out of escrow. If a licensed real estate broker, Escrow Agent will comply with applicable provisions of Chapter ~09 475, Florida Statutes. In any suit or arbitration in which Escrow Agent is made a party because of acting as agent hereunder or , ~0 interpleads the subject matter of the escrow, Escrow Agent will recover reasonable attorneys' fees and costs at all levels, with ~ such fees and costs to be paid from the escrowed funds or equivalent and charged and awarded as court or other costs in favor ~2 of the prevailing party. The parties agree that Escrow Agent will not be liable to any person for misdelivery to Buyer or Seller of ~3 escrowed items, unless the misdelivery is due to Escrow Agent's willful breach of this Contract or gross negligence. ~4 7. PROPERTY' CONDITION: Seller will deliver the Property to Buyer at the time agreed in its present "as is" condition, ordinary ~s wear and tear excepted, and will maintain the landscaping and grounds in a comparable condition. Seller makes no warranties ~m other than marketability of title. By accepting the Property "as is," Buyer waives all claims against Seller for any defects in the ~? property. (Check (a) or (b)) ~m- [] (a) As Is: Buyer has inspected the Property or waives any dght to inspect and accepts the Property in its "as is" condition. ~9' [] (b) Due Diligence Period: Buyer will, at Buyer's expense and within ~0 days from Effective Date ("Due Diligence Period"), ~2o determine whether the Property is suitable, in Buyer's sole and absolute discretion, for Buyer's intended use and development of ~2~ the Property as specified in Paragraph 4. Dudng the Due Diligence Period, Buyer may conduct any tests, analyses, surveys and 122 investigations ("Inspections") which Buyer deems necessary to determine to Buyer's satisfaction the Property's engineering, ~2a architectural, environmental properties; zoning and zoning restrictions; flood zone designation and restrictions; subdivision 124 regulations; soil and grade; availability of access to public roads, water, and other utilities; consistency with local., state and regional ~25 growth management and comprehensive land use plans; availability of permits, government approvals and licenses; compliance with ~26 Amedcan with Disabilities Act; absence of asbestos, soil and ground water contamination; and other inspections that Buyer deems ~27 appropriate to determine the suitability of the Property for Buyer's intended use and development. Buyer shall deliver wdtten notice ~28 to Seller pdor to the expiration of the Due Diligence Pedod of Buyer's determination of whether or not the Property is acceptable. ~29 Buyer's failure to comply with this notice requirement shall constitute acceptance of the Property in its present "as is" condition. ~30 Seller grants to Buyer, its agents, contractors and assigns, the right to enter the Property at any time dudng the Due Diligence ~3~ Pedod for the purpose of conducting Inspections; provided, however, that Buyer, its agents, contractors and assigns enter the ~32 Property and conduct Inspections at their own risk. Buyer shall indemnify and hold Seller harmless from losses, damages, costs, ~3a claims and expenses of any nature, including attorneys' fees at all levels, and from liability to any person, arising from the conduct of ~34 any and all inspections or any work authorized by Buyer. Buyer will not engage in any activity that could result in a mechanic's lien las being filed against the Property without Seller's prior wdtten consent. In the event this transaction does not close, (1) Buyer shall ~as repair all damages to the Property resulting from the Inspections and return the Property to the condition it was in pdor to conduct of ~37 the Inspections, and (2) Buyer shall, at Buyer's expense, release to Seller all reports and other work generated as a result of the ~ae Inspections. Should Buyer deliver timely notice that the Property is not acceptable, Seller agrees that Buyer's deposit shall be ~3,9 immediately returned to Buyer and the Contract terminated. ./ ~4o' Buyer.(d~ ) (.__) and Seller/~¢( ) acknowledge receipt of a copy of this page, which is page 3 of 5 Pages. .~4~ (c) Walk-through Inspection: Buyer may, on the day prior to closing or any other time mutually agreeable to the parties, :42 conduct a final "walk-through" inspection of the Property to determine coF,~pliance with ti ds paragraph and to ensure that all ~ Properly is on the premises. ~44 (d) Disclosures: 745 1. Radon Gas: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient 146 quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state 44? guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained ~ from your county public health unit. 449 2. Energy Efficiency: Buyer may have determined the energy efficiency rating of the building, if any is located on the Real ~ Property. 8. OPERATION OF PROPERTY DURING CONTRACT PERIOD: Seller will continue to operate the Property and any business conducted on the Property in the manner operated prior to Contract and will take no action that would adversely impact the Properly, tenants, lende~ or business, if any. Any changes, such as renting vacant space, that materially affect the Property or Buyer's intended use of the Property will be perrnittedl~only with Buyer's consentl-'lwithout Buyer's consent. ~r,.5 9. RETURN OF DEPOSIT: Unless otherwise specified in the Contract, in the event any condition of this Contract is not met and :sc Buyer has timely given any required notice regarding the condition having not been met, Buyer's deposit will be returned in ~57 accordance with applicable Florida laws and regulations. 1 0. DEFAULT: (a) In the event the sale is not closed due to any default or failure on the part of Seller other than failure to make the title marketable after diligent effort, Buyer may either (1) receive a refund of Buyer's deposit(s) or (2) seek specific performance. If Buyer elects a deposit refund, Seller will be liable to Broker for the full amount of the brokerage fee. 162 (b) In the event the sale is not closed due to any default or failure on the part of Buyer, Seller may either (1) retain all deposit(s) paid or agreed to be paid by Buyer as agreed upon liquidated damages, consideration for the execution of this Contract, and in full settlement of any claims, upon which this Contract will terminate or (2) seek specific performance. If Seller retains the deposit, Seller will pay the Listing and Cooperating Brokers named in Paragraph 12 fifty percent of all forfeited deposits retained by Seller (to be split equally among the Brokers) up to the full amount of the brokerage fee. 1 1. A'f-rORNEY'S FEES AND COSTS: In any claim or controversy arising out of or relating to this Contract, the prevailing party, which for purposes of this provision will include Buyer, Seller and Broker, will be awarded reasonable attorneys' fees, costs and expenses. 12. BROKERS: Neither Buyer nor Seller has utilized the services of, or for any other reason owes compensation to, a licensed real estate Broker other than: 172' (a) Listing Broker: Tony UIIoa 173' who is [] an agent of Keyes Company .,~). -~ ~- ?" r'~a transaction broker I-la nonrepresentative' ~' and who will be compensated by [] Seller [] Buyer r-lboth parties pursuant to [] a listing agreement [] other' (specify) 175' 176' 177' lZe* (b) Cooperating Broker, ~amra Sbeff~an , 179° who is r~an agent of Royal Palm Real~ ~. ~ :~-',)~ l'¢la transaction broker E]a nonrepresentative ~8oo and who will be Compensated by El BuyerrClSeller [] both parties pursuant torcl an MLS or other offer of compensation to a ~e~' cooperating brokerl-I other (specify) 182' Buyer is a licensed Real Estate Broker in the State of Florida ~Bs (collectively referred to as "Broker') in connection with any act relating to the Property, including but not limited to inquiries, ~e6 introductions, consultations and negotiations resulting in this transaction. Seller and Buyer agree to indemnify and hold Broker ~87 harmless from and against losses, damages, costs and expenses of any kind, including reasonable attorneys' fees at all levels, and ~m from liability to any person, arising from (1) compensation claimed which is inconsistent with the representation in this Paragraph, (2) ~e9 enforcement action to collect a brokerage fee pursuant to Paragraph 10, (3) any duty accepted by Broker at the request of Buyer or ~o Seller, which duty is beyond the scope of services regulated by Chapter 475, RS., as amended, or (4) recommendations of or services 19~ provided and expenses incurred by any third party whom Broker refers, recommends or retains for or on behalf of Buyer or Seller. 192- 1 3. ASSIGNABILITY; PERSONS BOUND: This Contract may be assigned to a related entity, and otherwisel--I is not assignable ~93' I'¢1 is assignable. The terms "Buyer," "Seller" and "Broker" may be singular or plural. This Contract is binding upon Buyer, Seller 194 and their heirs, personal representatives, successors and assigns (if assignment is permitted). /~ ~' Buyer-~f~) (~) and Seller.(~//~ (__) acknowledge receipt of a copy of this page, which is page 4 of 5 Pages. ~6 14. OPTIONAL CLAUSES: (Check if any of the following clauses are applicable and are a~ached as an addendum to this Contract): ~97' I-JA~bitration [] Seller Walranty r'-IExisting Mortgage ~98' [] Section 1031 Exchange [] Coastal Construction Control Line [] Other Bu,'er licensed Real EstateBrok~ :99' [] Propedy Inspection and Repair ~ Flood Area Hazard Zone ~Other ~b.!e/t~enant right of refn~.l 200' ~ Seller Representations ~ Seller Financing ~Otl~er ~ubiect to revie~ of leases 15. MISCELLANEOUS: The terms of ~his Contract constitute the entire agreement betw~n Buyer and Seller, Modifications of 202 this Contract will not be binding unless in writing, signed and delivered by the pady to be bound. Signatures, initials, documents 203 referenced in this Contract, counterparts and written modifications communicated electronically or on paper will be acceptable for 204 a~l purposes, including deliveD, and will be binding. Handwritten or typewritten terms inseded in or attached to this Contract prevail 2o5 over preprinted terms. If any provision of this Contract is or becomes invalid or unenforceable, all remaining provisions will continue 2o0 to be fully effective. This Contract will be construed under Florida law and will not be recorded in any public records. Delivew of any 20~ written notice to any pady's agent will be deemed delivew to that party 2o8 ~IS IS INTENDED TO BE A LEGALLY BINDING CONTACT. IF NOT FUrY UNDERSTOOD, SEEK THE AD. CE OF AN A~ORN~ 209 PRIOR TO SIGNING. BROKER ADVISES B~ER AND SE~ER TO VERI~ ALL FACTS AND REPRESENTATIONS ~AT ARE 2~0 ID~A~ TO THEM AND TO CONSULT AN ~PROPR~TE PROFESSIONAL FOR LEaL ADVICE ¢OR ~M~E, 2~ ~ INTERPR~ING OO~CTS, D~ERMINING THE EFFECT OF ~WS ON THE PROPER~ AND T~NSAOTION, STATUS OF 2~ 2 T~LE, FOREIGN INVE~OR REPOSING REQUIREMENTS, ~C.) AND FOR T~, PROPER~ COND~ION, ENVIRONMENTAL AND 2, 30~ER SPEO~LEED ~VlCE. BUrR ACKNOWLEDGES THAT BROKER DOES NOT ~CUPY ~E PROPER~ AND ~AT ALL 214 REPRESENTATIONS (O~L, WRI~EN OR OTHE~IS~ BY BROKER ARE B~ED ON SELLER REPRESENTATIONS OR PUBLIC 2~ 5 RECORDS UNLESS BROKER INDICATES PERSONAL ~RIFIOA~ON OF THE REPRESENTA~ON. BUYER AGREES TO RELY 2~ 6 ~LELY ON SELLER, PROFE~ION~ INSPECTORS ~D GO~RNMENTALAGENCIES FOR VERIFICATION OF ~E PROPE~ 2~ ~ OONDmON, SQU~E FOOTAGE AND FACTS ~AT ~TERIALLY AFFECT PROPE~ VALUE. 2,8-DEPOSIT RECEIPT: Deposit of $ 1.000.00 by~~~heck~other,,~ ~ received on 2~9' , b~ 220 ~ ' ~Si~re of Escrow Ag~t 221 OFFER: Buyer offers to purchase the Properly on the above terms and conditions. Unless acceptance is signed by Seller and a 222- signed copy delivered to Buyer or Buyer's agent no later than ~ a.m. ~ pm. on . 223 Buyer may revoke this offer and re~ive ~of all deposits. 22~- Title: ¢~r ~re~ ~r~ertie~ Telephone: f~e¢l ~-e4~¢ Facsimile: 226' Address: 227' Date: BUYER: T~ ID No: 228- Title: Telephone: Facsimile: 229' Address: 23~ ACCEPTANCE: Seller accepts Buyer's effer and agrees to sell the Prope~y on the above terms and conditions ~ subject to the 2~, attached counter offer),¢ /: ~'?/,. ~;~' 232- Date: ,;' ~ ~ ' '- "" SELLER: , 2,...~. ¢--.¢; ~.; ~:~ (~ T~ ID No: 234' Address: 235- Dee: SELLER: T~ ID No: 2~- Title: Telephone: Facsimile: 237'~ Address: ~¢. ~' Buyer~( ) and Seller (?~/~(~.)'~" acknowledge ~ceipt of a copy of this page, which is page 5 of 5 Pages. The Florida Association oi R~L~O~ makes no represe~talion as to the legal validity or ad~uacy of any provision ol this lorm in any specilic transaction. T~; stanoardizeO Iorm shoulC not De use~ in complex transactions or w~th extensive doers or aO~itions. Th~s form is available lot use ~y lhe enlire real estate inO~stry anO is not inten~e~ lo iOenti~ the user as a R~LTOR. ~LTOR is a regis~er~ col~ctive membership mark which may be use~ only by real estate licensees who are members of the ~ATIONAL ASSOCiATiON OF REALTORS and who subscribe to its CoOe ol Ethics. T~e copyright laws of the UniteO Slates (~ 7 US. Co~e} ~orbiO the unauthor~ed reproduction of this form by any means incluOing Iecsimile or computerize~ Iorm~, CC-2 ~ 1997 Florida Association of REALTOR~ Ali Rights Reserved COLONIAL BANIC Via Fax (305) 534-5151 Mar0h 19, 2004 Ms. Tamm Sheffman Tamron Properties, LLC 4600 Royal Palm Ave Miami Beach, Fl 33140 Re: I~$$ Bay Road Miami Beach. Florida 33139 · Dear Tamra: This letter constitutes a preliminary l¢~r of commitment by Colonial Bank ("bank") to extend a loan to you and your group (hereafter referred to as "borrower"). A formal commianent will be prepared upon acceptance by your Group of the following terms and ~onditions: The g~ral terms and conditions of the loan would be as follows'. Pprpos¢: Pu~haso captioned property ~ $948,000 ~ 1 to 5Yr SWAP Rate (rat~ adjusted at 0losing) Term: 10 y~ars (adjusting according to thc selected SWAP Rate) Commitment fee: Personal Gaar,,ntors: Tarnra Sh¢ffman Coil~iersl: 18~3 Bay Road, Miami Beach, Florida 33139 ~,dd!tionsl Reanlr~.me~i'-. Operating account to be maintained at Colonial Bank. This letter is subj~;t to fl~¢ following: 1. Receipt and satls£~;tory review of documentation required by bz. nk or i~ ~ounr~l for ~Iosin8 of loan. 2. Final approval by Colonial Bank's loan committee 3. Execution of loan commitment, which will contain other requirements. 4. Normal and customary closing conditions including, but not limited to, payment by borrowers of all legal fees and costs for preparation and legal review of the closing documents and administration of the loan closing. 1 An Affiliat* ofTha ~olonlal B~ncGroup, lac. P.O. Box 3101~7, ~ Flod~ 33:~.31-0367 This preliminary commitment l~tter is presented for discussion purposes to express our sincere interest in providing this financing and to detail our mutual undo'standing. If the ~bove terms are acceptable please acknowledge by signing below and forwarding with your check in the amount of $1,000 repres~nt/ng thc application fee. This fee will be credited ~owards your closing costs. Since your loan requires an urgent closing, thc file needs to be ~ssigned to an attorney for loan doctunea'ttation immediately. Sincerely, gr. Vice President Commeroial Lending Department 2 ~:9~ ~O~-6~-~dW AMENDMENT TO LEASE AGREEMENT This Amendment to the Lease Agreement, dated January 31, 2001, for the use of the property located at 1833 Bay Road, Miami Beach, Florida (Property) by and between the City of Miami Beach (Tenant) and Gloria Miller-Rosenthal (Landlord) is entered into this 4t~ day of February, 2004. WlTNESSETH WHEREAS, on January 31,2001, Gloria Miller-Rosenthal (Landlord) and the City of Miami Beach (Tenant) entered into a Lease Agreement for the use of the property located at 1833 Bay Road, Miami Beach, Florida (the Property) to house certain City of Miami Beach Police Department Operations and the Parking Department Sign Division; and WHEREAS, the Lease Agreement has a term of three years, commencing on February 1,2001, and expiring at midnight on January 31, 2004; and WHEREAS, the City as Tenant is desirous of remaining on the Property, on a month-to-month basis, until such time as improvements to alternate City-owned facilities are completed to relocate its respective operations; and WHEREAS, it is estimated that said improvements and relocation schedule extend beyond the termination date of the Lease Agreement; and WHEREAS, in light of the foregoing, the Landlord and Tenant have mutually agreed to extend the term of the lease on a month-to-month basis to allow for the aforementioned improvements to be completed and allow adequate time for Tenant to relocate its respective operations, in accordance with the terms and conditions outlined herein. NOW, THEREFORE, the Lease Agreement is hereby amended as follows: The Tenant agrees that it will continue its lease effective February 1,2004, on a month-to- month basis subject to the following terms and conditions: 1) The Tenant and Landlord acknowledge that the Leased Premises, which contains two floors, contains 6,464 square feet divided equally between the first and second floors, together with the surrounding land and parking areas. 2) The Tenant agrees to pay the Landlord, as compensation for use of the Leased Premises, the sum of Ten Thousand ($10,000) Dollars per month, plus Five Hundred ($500) Dollars per month which represents the increase in real property taxes and insurance (as reported by Landlord) for the years 2001 through 2003. 3) The Tenant and/or Landlord may, at their sole discretion, without cause, terminate or discontinue the use 'of the first floor space or the second floor space or may terminate the entire month-to-month tenancy upon giving the other party sixty (60) days prior written notice of its intentions. 4) In the event that either party chooses to terminate one of the two floors of the Leased Premises, then, in that event, the monthly rental shall be reduced Page I accordingly to Five Thousand ($5,000) Dollars per month, plus Two Hundred Fifty ($250) Dollars per month for real property taxes and insurance. In addition thereto~, if only one floor is being leased, the Tenant shall be entitled to use only one-half of the surrounding land and parking spaces. 5) Subject to the provisions of Paragraph 6, the Tenant is granted the right to purchase the Property, for $986,000, 1) within the next six (6) months; or 2) until such time as the Tenant notifies Landlord in writing of its intention not to purchase, whichever occurs first. 6) In the event the Landlord enters into a binding Purchase and Sale Contract for the sale of the Property with a pre-approved and qualified third party within the above option period, the Tenant is granted the right to match the amount proposed in such binding Contract and terms and conditions thereof and purchase the Property for such price and under such terms and conditions. If the Tenant does not exercise its right to purchase the Property at that time and the Purchase and Sale is not consummated with said third party, the Tenant's rights to purchase the Property shall continue as provided in 5.1 and 5.2 above. 7) Upon the Tenant's vacation of the Property, whether it vacates one floor at a time or both simultaneously, each floor will be redelivered to Landlord in the same condition same were leased, ordinary wear and tear excepted. 8) Unless specifically amended herein, all other terms and conditions of the Lease Agreement, dated January 31,2001, between the Landlord and Tenant shall remain in full force and effect. In the event there is a conflict between the provisions provided herein and the Lease Agreement, the provisions of this Amendment to the Lease Agreement shall govern. IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to the 'Lease Agreement to be executed by their duly authorized officials on the day first above indicated. ATTEST: ~~H, FLORIDA CITY CLERK MAYOR GLORIA MILLER-ROSENTHAL JMG:CMC:JD:rd FORM & LANGUAGE & FQR EXECUTION t~.~.~l~~ Page2 - Date THE CITY OF MIAMI BEACH PROPERTY MANAGEMENT DIVISION 1245 MICHIGAN AVENUE MIAMI BEACH, FLORIDA 33139 (305) 673-7630 fax (305) 673-7963 ~_-~__~ ~ To: Christina Cuervo April 12, 2004 Assistant City Manage$_, From: Bra~-A. Judd RPA, FMA, CGC Director, Property Management Subject: Feasibility Study of the 1833 Bay Road Building As requested, Property Management conducted a study of the existing conditions of the 1833 Bay Road building to provide information on the conditions of the building for the potential purchase of the property by the City. In addition to our own investigations, we have received comments from Inspectors from the Building Department and Fire Department on their understandings on the codes and how they apply to the facility. The following is the findings: The building was originally constructed in 1953 and is a CBS two-story structure that contains approximately 6,000 square foot of useable space. The second floor is an open space floor area with some offices built on the south and west perimeters of the space. The first floor is constructed using a short span concrete joist system connected to a bearing CBS wall that runs east-west in the center of the building that supports the load of the second floor. Although space configuration is unlimited on the second floor, the first floor is limited by the presence of the load bearing wall center wall of the building that cannot be removed. Electrical Systems The electrical service for the Building is a 120/208Volt-150 Amp single phase service. This service provides power to sub-panels on both floors of the building. All electrical devices, receptacles, switches, disconnects, and lighting were tested for proper operation and grounding and were found to be in good working condition. It is estimated that the existing electrical service will only require minimal maintenance over the next ten years unless additional needs or additional service is required by the use of the facility. Plumbing Systems The plumbing service in the Building consists of two restrooms on each floor and one kitchen areas on each floor of the Building. The fixtures of the restrooms and kitchen areas were found in good operational condition and should provide reliable service for at least the next 6 years. There were some needs that should be addressed. Although most of the building has copper piping, there are some small areas that have galvanized pipes that should be replaced. Additionally, the building does Agenda Item f~ ~ Date tt-ltf~OC not have backflow protection that must be added to meet current Code requirements. The estimated cost of replacing the galvanized pipes and providing a backflow prevention device is $6,500.00. HVAC System The HVAC system in the building is inadequate. It consists of a small split unit (36,000 btu) that covers a small area on the second floor only. The remainder of the Building is.controlled by 9 small wall mounted air-conditioning units. These units are non-energy efficient and do not provide the required fresh-air mixture as required by Code. This configuration also limits the ability of interior modifications to the facility by allowing open space design only. The existing system should be replaced with a central air-conditioning system with a duct supply and return on both floors that will have the appropriate fresh air make-up to comply with Code requirements. The estimated cost of this work is $35,000. The building also hasan ice-making machine that is in good working condition. General Building The inspection of the general building revealed many issues that should be addressed. Interior carpeting on both floors needs to be replaced. Also, sub-flooring in multiple areas has signs of rot and the wood sub-flooring will need to be replaced. Some exterior doors and windows in the building need replacement and interior walls, ceilings, cabinets and other interior elements are in need of repair. Exterior stair railings, building plaster/stucco and openings need to be repaired or replaced. A detailed list is provided in this report with an estimated cost of $56,500 for the needs. There are also signs of previous or existing termite infestation of the building. Painting If modifications are made to remove the existing wall air-conditioning units and patch the existing openings through the exterior walls, this would require patching, priming, sanding, caulking, and finish costing of the interior and exterior of the building. The estimated cost for the complete painting of the facility is $16,600. ADA Requirements Although interior renovations of the building have been done in the past by the City, and restrooms and kitchen areas were constructed to be ADA compliant, the building does not provide for path of travel requirements to the second floor level. To meet this requirement, an elevator will need to be installed in the building. The estimated cost of an elevator and shaft construction would be in the $80,000-$100,000 range depending on the foundation and structural requirements. In addition, signage, railings, strobe lights, ramps, and other minor elements will be required. Building and Fire Department Inspector Comments On April 6, 2004, inspectors from the building and fire Departments walked through the facility to make their own determinations of existing conditions of the 1833 Bay Road Building for the purpose of providing the information to allow cost estimates for this report. The current use of the facility presents a major problem with both of the regulatory agencies. Both consider the use of the ground floor as a sign shop as "hazardous or industrial use" and the second floor offices as "Business use." There are no fire rated assemblies or protections between the floors as would be required for these two types of occupancy in the same facility. The following is the comments of the Building and Fire Inspectors and the associated costs for the correction of the deficienCies found. Mechanical {HVAC) comments (Building Department) · Combustibles cannot be stored inside of building. To be determined by future use of the facility. · Need outside air 1 st and 2nd floors. This item would be corrected with the installation of a central air-conditioning system previously mentioned if installed to Code requirements to provide fresh air to both floors. · Central Air Conditioning on second floor not accessible for service. ]'his item would also be addressed with the installation ora new central air-conditioning system in the facility. Preliminary List of Building Code Deficiencies (Building Department) · Check for Fire separation and penetrations between floors (tenants). With current occupancy and according to the Fire Department, the floor separation would be required to have a four hour fire rating. Although the cost ofa 4 hour rated assembly is known (approximately $8.00 per sq.ft, x 3,000 sq. ft. = $24,000). there has been no structural evaluations of the beam and floor assembly to determine if the weight of the fire rated materials can be supported by the existing structure. · Stairs are not in conformance in variations. (rise and run) This will require forming and pouring of concrete or epoxies to provide consistency within 3/16 of and inch in both run and rise. Estimated cost $2.500. · Railing deficiencies in height and rail spacing. Stair railing will need to be replaced to comply with code. Estimated costs are $5,000. · Storage of flammable liquids on the first floor including gasoline, gas fired equipment, generators, spray painting equipment, and paint. To be determined by future occupancy and use of the facility. · Emergency egress issues in the building. I have asked for clarification on this issue as I see no egress issues on either floors of the facility. There are at least two exits on each floor. From any point in the thcility a person is within 75 1.f. of an emergency egress exit. Unless this comment is in reference to the paint shop or current use. I see no egress issues in the facility. · Depending on occupancy and renovation, need to install an elevator and address accessibility issues. This Item and estimated costs was previously addressed in this report. This is a "Path of Travel" requirement under ADA regardless of occupancy or renovation. · Structural evaluation of the building by a licensed Structural Engineer needed. A structural evaluation of the facility should be done prior to the purchase of the property to determine some of the information about excepted use and load calculations for fire rated assembly installations. Estimated cost is $3,000. · Load calculations required for the second floor. This would be included and provided in the structural evaluation. · Hallway widths too nan'ow. I could find no code violations with the existing hallway widths. · May require fire or smoke alarms. This could be correct depending on the future use of the facility if a paint shop is to remain. Estimated costs are $6,000 for a hard wired system with monitoring. · Testing of existing concrete strengths. To be determined by the results of the structural survey, if necessary. · Roof evaluation (survey) We are aware that the roof on the building was installed in 1995. With a ten year warranty, it could have a need 1hr total replacement. A survey of the roof would cost approximately $2~500 to include survey and specification development and would be recommended prior to the purchase of the facility. A total replacement of the existing roof would cost in the range of $36,000- $40,000. Preliminary_ List of Fire Code Deficiencies (Fire Marshall Office) · No tenant separation. ( fire rating ) This item was previously addressed in the report. · Hazardous materials stored on first floor. This item was previously addressed in the report. · Problems with handrails, guardrails, steps and landings on the second floor. This item was previously addressed in the report. · Exit and emergency lights. Repairs would cost under $1,000. · Exit discharge problems. I am not aware of any exit discharge issues or problems with the facility. · Ventilation of fumes (chemicals) from building. (fresh air exchange). This item is specific to the continued use of the facili~r as a paint/sign shop. Normal use of this type of occupancy requires a specialized spray booth and enough ventilation to make multiple air exchanges of the space within a one hour period. Although it could be argued that this is not a real paint shop, the use of spray painting equipment, gasoline, and gas fired equipment would trigger the same Code requirements. To add a ventilation system capable of the requirements would cost approximately $15,000. However the use of the equipment would severely affect the air-conditioning in the building unless all use of this type is contained into one area of the building. Conclusion Based on the inspections made by Property Management, Building, and Fire Departments the estimated costs to bring the facility into Code and in good operational order is estimated to be $316,600.This does not include any elements that may be required by the results of the structural survey or requirements to continue the use of the facility under a hazardous/industrial use occupancy. Prior to the purchase of the facility, I would highly recommend the following surveys be completed to provide additional understanding of existing conditions of the facility. · Roof assessment survey ( base $1,000, with specifications for replacement $2,500 ) Environmental site assessment survey including asbestos. ($3,000) Termite/extermination survey ($1,000 ) Structural survey ($2,500) A consideration should be made as to the continued use of the facility as industrial/hazardous occupancy. A separate small facility or shop could be placed on the site to eliminate this type of problem and provide a space for painting and the storage of hazardous materials. The savings of eliminating the double use occupancy of the building would be enough to fund a major part of this small facility and will reduce code compliance issues within the building. In a overall estimate based on worst case scenarios from the surveys, and to provide a reasonable amount of funds to do minor interior renovations of the space (6,000 x $20.00 per sq. fi = $120,000), I would estimate the total need for the facility would have an expected cost range of between $450,000-$500,000. I hope this report provides the information you have requested. BAJ (': ~My f:iles~Chri.~nat 1833 Bay Roaddoc Cc: Fred Beckmann Public Works Director Joe Damien Asset Manager THE CITY OF MIAMI BEACH PROPERTY MANAGEMENT DEPARTMENT .~ .__~__~ 1245 MICHIGAN AVENUE MIAMI BEACH, FLORIDA 33139 Tel. (305) 673-7630 Fax (305) 673-7963 ~-- · 1833 BAY ROAD (SlU OFFICES) INSPECTION The following is a list of HVAC equipment at the current SIU site: UNIT LOCATION MAKE SIZE AGE REMAINING REPLACEMENT SERVICE (yrs.) COST Wall unit 1st. Floor Friedrich 24,000 btu's 5 3* $650.00** Wall unit 1st. Floor Friedrich 24,000 btu's 5 3* $650.00** Wall unit 1st. Floor Friedrich 24,000 btu's 5 3* $650.00** Wall unit 1st. Floor Friedrich 24,000 btu's 5 3* $650.00** Wall unit 1st. Floor Friedrich 18,000 btu's 1 7* $600.00** Wall unit 1st. Floor Friedrich 12,000 btu's 5 3* $500.00** Ice 1st. Floor Scotsman App. 500 lbs. 5 5 $3,000.00** machine 24 hours Wall unit 2nd. Floor Friedrich 24,000 btu's 9 0* $650.00** Wall unit 2nd. Floor Friedrich 24,000 btu's 9 0* $650.00** Wall unit 2nd. Floor Carrier 12,000 btu's 5 0'** $500.00** Split 2nd. Floor American 36,000 btu's 10+ 0* $2,500.00 system Standard * The projected service life of all air conditioning units in our equipment inventory is largely dependent on the level of exposure to the weather and the proximity to the ocean. Most of these units already have partially corroded condenser coils. ** Cost of equipment only (No labor). *** This unit is non-operational and due for replacement. GENERAL NOTES 1. The approximate total area under air conditioning is 6,000 square feet. The estimated installation cost of new central air conditioning units and duct work is $30,000.00. This does not include electrical upgrades. 2. The current first floor occupancy will require hazardous chemicals exhaust system. The total estimated cost of such exhaust system is $10,000.00 to $15,000.00. If painting activities will continue, additional cost will be incurred should a spray booth be required. 3. The estimated area currently under central air conditioning is 750 square feet. THE CITY OF MIAMI BEACH PROPERTY MANAGEMENT DEPARTMENT 1245 MICHIGAN AVENUE MIAMI BEACH, FLORIDA 33139 Tel. (305) 673-7630 Fax (305) 673-7963 1833 BAY ROAD (SlU OFFICES) INSPECTION The following is a list of bathrooms and kitchens at the current SIU site: UNIT LOCATION AGE PROJECTED RENOVATION SERVICE (yrs.) COST Bathroom 1st. Floor 5 10+ $10,000.00 Bathroom 1st. Floor 5 10+ $10,000.00 Kitchen 1st. Floor 5 10+ $5,000.00 Bathroom 2nd. Floor 9 6+ $10,000.00 Bathroom 2nd. Floor 9 6+ $10,000.00 Kitchen 2nd. Floor 9 6+ $5,000.00 NOTES 1. Bathroom and kitchen facilities were found in good working condition. 2. A small section of the building's piping is galvanized. Most of the existing plumbing is copper piping. The estimated replacement cost of the existing galvanized piping is $3,000.00. The estimated installation cost of a back flow preventor is $3,500.00. ELECTRICAL INSPECTION OF SIU BUILDING An inspection of this building was completed April 7th 2004 and the following conditions were found: 1. The Electrical Service is located on the east side ofthe building. It has a single phase 120/208V 150A main disconnect switch which feeds a 200A 42 circuit WP panel board. All breaker screws were tightened upon inspection and the equipment is in good working condition. The bottom of the 42 circuit panel is showing signs of rust and needs to be zinc coated. 2. There are two 120/208V 125A 24 circuit sub-panels on the second floor of the building, all breaker screws were tightened upon inspection and the equipment is in good working condition. 3. All Electrical devices receptacles, switches, disconnect switches, and lighting were tested for proper operation and grounding and found to be in good working condition. All electric in this building is in good working condition and should only require minimum maintenance over the next ten years. Property 'Management 4/8/04 Maintenance Division GENERAL BUILDING INSPECTION On April 7, 2004, a complete inspection was made on the building being used by Meter Parking and SIU. The Carpenter Shop found the building average condition but sound for its age. Below is a list of repairs and estimates. FIRST FLOOR: a) Carpet needs to be removed and new flooring installed, est: $8,500 b) Drop ceiling needs tiles and adjustments, est: $2,500 c) Front door with window and frame (steel). est: $1,000 d) Remodel the restroom, est: $4,000 Subtotal: $16~000 SECOND FLOOR: a) Carpet need replacing, wood under carpeting has some bad area. est: $10,000 b) Patch holes and repair drywall, est: $1,000 c) Kitchen needs new cabinets, est: $3,000 d) One 36" x 80" door and frame needs replacing, est: $1,000 e) There is evidence of termites, est: $ ? f) Drop ceiling tiles replacement, est: $1,000 g) Two restrooms needs remodeling, est: $8,000 h) Back upper stairwell, inside floor is rotten, est: $600 i) Replacing rotted exterior door and jamb located at the upper rear of stairs in building, est: $1,000 j) Installing an awning at above door location, est: $400 Subtotal: $26~000 MAIN STAIRWELL AND EXTERIOR: a) Front main stairwell needs exterior door and jamb including stucco work. est: $1,500 b) Main stairwell at 2n'~ level needs a complete drop ceiling replaced, est: $3,000 c) Bottom of main stairwell need a 4 ftx 10f~ area blocked up. est: $1,000 d) Back exterior of building needs to have stucco and a scalar, est: $6,500 e) All windows need maintenance and caulking, est: $2,500 Subtotal: $14,500 FIRST FLOOR $16,000 SECOND FLOOR $26,000 MAINT STAIRWELL AND EXTERIOR $14~500 TOTAL: $56,500 The above dollar figure shows the cost of the labor and materials. This estimate is from the carpenter shop only and would bring the building up to good standing. The only thing not included is the cost of an exterminator. There is evidence of termites so the building should be treated. If you have any questions please feel free to give me a call. PAINTING ESTIMATE 1833 BAY ROAD BUILDING Scope of work Patching, priming, sanding, caulking and finish coating of' inside and outside building. Labor & Material Cost Building Interior Exterior Interior First Floor Pressure Clean 2 men ~ 5 days - $ 2,819 2 men @ 2 days - $1,127. Paint $ 240 Total $1,127 Total $ 3,059 Second Floor and Staircase Prime 2 men ~ 12 Days $ 6,766 2 men ~ 4 days - $ 2,255 Paint $ 300 Paint $ 525 Total $ 2,780 Total $ 7,066 Finish Coat 2 men @ 4 days- $ 2,255 Paint $ 300 Total $ 2,555 Total Interior $10,125 Total Exterior $ 6,462 Grand Total $16,587 CITY OF MIAMI BEACH --- BUILDING DEPARTMENT ACCESSIBILIT COMMENTS Date: April 12, 2004 Address: 1833 Bay Rd, Permit No. N/A Inspector: Gladys N. Salas Description: Accessibility Compliance for 1833 Bay Rd. Since some unforeseen conditions can not be established with a sole inspection it is difficult to give a single answer of accessibility requirements at this point. Nevertheless, the following is a list of three scenarios that can apply: 1- If the building will remain as it is and not alterations are planned or required and if the building will be not open to the public then the building can remain as it is, with the exemption of minor changes to correct some violations as follow: a- In the non- accessible entrance provide a sign indicating the location of the nearest accessible entrance. b- The accessible bathroom shall be identify as accessible and the non- accessible bathroom to have directional signs indicating the location of the accessible bathroom. c- The stairs to the second floor shall be upgraded to comply with all provisions of the Florida Building Code section 11-4.9. 2- If alterations are planned or are required then alterations has to be designed and built in compliance with the Florida Building Code section 11-4.1.6 and with the ADA Title I1. Therefore the following items should be considered: a- All altered areas must be design and build accessible. b- Up to 20% of the cost of construction must be to improve the accessibility to the path of travel. Path of travel: Accessible route from sidewalk to the building, make main entrance accessible, make drinking fountain and public telephones accessible. c- Vertical accessibility to all levels shall be provided: Elevator to the second floor must be provided since the elevator exemption does not apply to local government buildings. 3- If the second floor will be open to the public then the installation of an elevator and construction to make all public or common used areas accessible to comply with the program access requirement. The following is a list with some of improvements that will be necessary to improve accessibility to the building. a- Design and built accessible parking spaces near the accessible entrance. b- Make the main entrance accessible c- Providing an elevator to the second floor d- Providing at least one unisex accessible bathroom per floor. e- Making all programs and services accessible. f- Installing signage. Accessible: Means in compliance with the Florida Building Code section 11 and with the American with Disabilities Act Title II. The list of corrections may vary depending of the planned or required alterations. 2 Page I of 1 Judd, Brad From: Damien, Jose Sent: Thursday, April 08, 2004 1:37 PM To: Judd, Brad Cc: Beckmann, Fred; Cuervo, Christina; Reboso, Robert Subject: COMMENTS REGARDING 1833 BAY ROAD WALK-THRU Importance: High Brad, below are the first 2 set of comments received from the parties that were on site yesterday (04/07/04). I will forward the balance of the comments as they are received. Mechanical (HVAC) comment: · Combustibles cannot stored inside of building · need outside air 1st and 2nd floor · central a/c system on second floor not accessible for servicing Preliminary list of Building Code* related deficiencies found at the above noted address. 1. Check for fire separation between tenants. (Through Penetrations) 2. Stairs not in conformance variations in rise and run. 3. Railing deficiencies height and rail spacing. 4. Storing of flammable liquids on the first floor gasoline and gas fired equipment (generators, traffic line painting machines). 5. Egress issues in the building. 6. Depending on occupancy and renovation upgrades may need to install elevator and address accessibility issues. 7. Have a structural evaluation of building by a private licensed structural engineer. 8. What kind of loads will be put on second floor?. 9. Hallway widths are very narrow. 10. May want Fire alarm (smoke detectors at least). 1 1. May want to check concrete strengths. 12. Evaluation of roof may be in order. * Please note that inspections were not thorough structural inspection but a general overview of the facility. Final determination of occupancy on the first or second floor may trigger other code issues. Inspection do not constitute a structural evaluation, they only address building issues. 4/9/20O4 Page I of l Judd, Brad From: Machen, Sonia Sent: Friday, April 09, 2004 4:22 PM To: Judd, Brad Subject: FW: 1833 Bay Sonia Flores Machen Ftre Marshal Miami Beach Fire Department 2300 Pinetree Drive Miami Beach. FL 33140 Ph.: 305.673-7123 Fx.: 305-673-1085 ..... Original Message ..... From: Hachen, Sonia Sent: Thursday, April 08, 2004 8:09 AH To: Weston, David Subject: RE: 1833 Bay Thank you very much. $onia Flores Machen Fire Marsha! Miami Beach Fire Department 2300 Pinetree Drive Miami Beach, FL 33140 Ph.' 305-673-7123 Fx.: 305-673-1085 ..... Original Message ..... From: Weston, David Sent: Thursday, April 08, 2004 7:58 AlVl To: Machen, Sonia Cc: Guise, Glenda Subject: 1833 Bay 1833 Bayis a two-story CBS building, 3000 square feet each level on an 8000 square foot lot. According to parking the building has never been inspected and has been occupied by parking for 20 years. The PD is upstairs and parking is downstairs. Both rent the space from a private owner. PD is moving out and a new tenant may move in. Alternatively the city may buy the property. There is no tenant separation between floors and hazardous materials are stored on the first floor. The first floor would be currently classified as Industrial occupancy and the second floor is currently used as a business occupancy. There are problems with the handrails, guard rails, steps and landings on the second floor. Existing exit signs appear to be burnt out. There do appear to be exit discharge problems. dcw 4/12/2004