2008-26808 ResoRESOLUTION NO. zoos-zbsos
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, APPROVING A PARTIAL FEE WAIVER
FOR ALL CITY RIGHT OF WAY PERMIT FEES, IN
THE AMOUNT OF $194,202.15, FOR THE FIFTH
AND ALTON PROJECT, AS SAID PROJECT
QUALIFIES AS A PARTIAL CITY PROJECT (IN
LIGHT OF THE CITY'S OWNERSHIP OF PARKING
SPACES WITHIN THE GARAGE PORTION OF THE
PROJECT).
WHEREAS, on May 18, 2005, the Mayor and City Commission adopted
Resolution No. 2005-25899, approving a Development Agreement between the
City and AR&J Sobe, LLC., for the development of the project, presently referred
to as "5'" and Alton" (the Project); and
WHEREAS, in February 2007, the Developer was granted a Building
Permit and paid $173,537.15; and
WHEREAS, in October 2007, the Developer was granted a Right of Way
Permit approving the use of the right of way to place construction fencing along
the site perimeter along 5`" Street, 6t6 Street, Lenox Avenue, and Alton Road.
and deferring the Right of Way obstruction fee for a period not to exceed six (6)
months from the date of issuance; and
WHEREAS, the amount calculated for the Right-of-Way Permit fee is
$236,902.15; and
WHEREAS, the Developer requested that the fee be held in abeyance
and that the City con§ider the project to be a partial "City" project, thereby
justifying consideration for a partial waiver of permit fees; and
WHEREAS, pursuant to the Development Agreement, the City will own
500 parking spaces within the Project (therefore consideration of the Project as a
"partial City project" is justified); and
WHEREAS, the total amount of Right of Way Permit Fees is $236,902.15;
and
WHEREAS, at the April 16, 2008 City Commission meeting, the Mayor
and City Commission agreed that the Project is a "partial City project" and
authorized a partial fee waiver.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and
City Commission hereby approve a partial fee waiver for all City right of way
permit fees, in the amount of S194,202.15, for the Fifth and Alton Project, as said
project qualifies as a partial City project (in light of the Citys ownership of parking
spaces within the garage portion of the project).
PASSED and ADOPTED this 16th day of April, 2008
ATTEST:
AYOR
{,1~ ~t,v~.l•Cq~-~ Matti tlerrer2 L3ower
CITY CLERK
Kobert Yarcher
APPROVED AS TO
T?AGENDA'•2008'Apr.l'IB'•ReguaM1FClh acd Alton Fce Lroalver Rrso.dcc FORM & LANGUAGE
i~ FO .EXECUTION
-' ~,, ,~, to z~~o~.
y ~ Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Approving A Partial
Fee Waiver For All City Permit Fees, In The Amount Of $211,711.02, For The Fifth And Alton Projecl, As
Said Project Qualifies As A Partial City Project, In Light Of The City's Ownership Of Parking Spaces Within
The Gara a Portion Of The Project.
Ke Intended Outcome Su orted:
Im rove arkin availabilit .
Supporting Data (Surveys, Environmental Scan, etc.):
74% of residents and 72% of businesses rate the availability of parking across the City as too little or
much too little. Availability of parking was one of the changes residents identified to Make Miami Beach
better to live, work or la .
Issue:
Should the Mayor and City Commission adopt the Resolution and approve a waiver of right of way fees for
the Fifth and Alton ro ect?
On October 25. 2007
A separate item on the April 16, 2008 City Commission agenda is a Resolution setting the date of the first
public hearing for consideration of a Development Agreement with Berkowitz Development Group for
construction of right-of-way infrastructure improvements on Lenox Avenue and on 6°i SVeet by the
Developer. Construction of these ROW improvements is scheduled to commence between October 2008
and January 2009. Since the proposed Development Agreement provides that the Developer will construct
the right-of-way improvements pursuant to the City's design, the ROW use fee for the locations and
purposes subject to the Development Agreement have been deducted from the calculated permit fee.
Due to the Developer's agreement to locate a grocery storelsupermarket on the ground floor of the project
for at least a 10 year term, the project was determined to provide a public benefit. Since the City is a partial
owner of the garage, the Developer is requesting that the project be considered a "City' project for the
purposes of permit fees, and therefore, allowing a fee waiver commensurate with the percentage of City
Source of
Funds• Amount Account
1
OBPI Totai
Financial Impact Summary:
NIA
Ci Clerk's Office Le islative Trackin
Kevin Crowder xt. 6186
Sign-Offs: Department sistant City Manager
Director City Manager
TH JMG
Summary.tloc ;~
m MIAMIBEACH AGENDAITEM~
DATE ~~
m MIAMIBEACH
by of Miomi Boach, 1700 Convention Center Drive, Miami Beoch, Florida 33139, www.miamibeochH.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~'~ ~ " /
j'
DATE: April 16, 2008 -
SUBIECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING A PARTIAL FEE WAIVER FOR ALL
CITY PERMIT FEES, IN THE AMOUNT OF $211,711.02, FOR THE FIFTH AND
ALTON PROJECT, AS SAID PROJECT QUALIFIES AS A PARTIAL CITY
PROJECT, IN LIGHT OF THE CITY'S OWNERSHIP OF PARKING SPACES
WITHIN THE GARAGE PORTION OF THE PROJECT.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On February 23, 2005, in consideration of the public benefits being provided by AR&J Sobe
(Developer), the Mayor and Ciry Commission adopted Resolution No. 2005-25827,
approving and authorizing the vacation of an alley located adjacent to the proposed Fifth and
Alton development project.
On May 16, 2005, the Mayor and City Commission adopted Resolution No. 2005-25899,
approving a Development Agreement between the City of Miami Beach and AR&J Sobe,
LLC, for the development of Fifth and Alton, a vertical retail center and parking garage.
On July 12, 2006, the Mayor and City Commission approved Resolution No. 2006-26246,
amending the Alley Vacation Agreement between the City and the Developer, conforming
the deadline dates for execution of the grocery lease and construction commencement to
the dates specified in the Development Agreement.
On April 25, 2007, the Mayor and City Commission approved a Resolution amending the
Development agreement, with the following changes:
• The City will purchase 500 parking spaces in the facility, rather than 535; and
• The City's funding contribution per parking space will increase from $16,395 to
$27,000; and
• The Developer shall not be required to pay $15,000 each for the removal of three (3)
parking spaces on the south side of Sixth Street; and
• The City shall pay the cost of recording the Declaration of Condominium, rather than
50% of the cost (estimated total cost of $30,000).
The City's total contribution to this project is $14,397,725, of which 24.4% or $3,512,273
has been paid to the Developer as of April 1, 2008.
Commission Memorandum -Fifth and Alton Permit Fees
April 16, 2008
Page 2 of 2
Permit Fees
In February 2007, the Developer was granted a Building Permit and paid $173,537.15.
Concurrent with the issuance of the Building Permit, the Developer also paid $457,228.80 in
Concurrency fees. In October 2007, the Developer was granted a Right of Way Permit
approving the use of the right of way to place construction fencing along the site perimeter
along 5`" Street, 6`~ Street, Lenox Avenue, and Alton Road, and deferring the Right of Way
obstruction fee for a period not to exceed 6 months from the date of issuance. The amount
calculated for this permit fee is $236,902.15, which brings the total City permit fees to
$867,668.10. The Developer requested that the fee be held in abeyance temporarily and
that the City consider the project to be a partial "City" project; therebyjustifying consideration
for a partial waiver of permit fees.
A separate item on the April 16, 2008 City Commission agenda is a resolution setting the
date of the first public hearing for consideration of a Development Agreementwith Berkowitz
Development Group for construction of right-of-way infrastructure improvements on Lenox
Avenue and on 6'" SVeet bythe Developer. Construction ofthese rightof-way improvements
is scheduled to commence between October 2008 and January 2009. Since the proposed
Development Agreement provides that the Developer will construct the right-of-way
improvements pursuant to the City's design, the right-of-way use fee for the locations and
purposes subject to the Development Agreement have been deducted from the calculated
Right of Way permit fee.
Due to the Developer's agreement to locate a grocery store/supermarket on the ground floor
of the project for at least a 10 year term, the project was determined to provide a public
benefit. In addition, the parking garage will have approximately 1,100 parking spaces of
which, the City owns 500 spaces. The parking garage will be operated by the City and will
be open 24 hours per day. It is anticipated that this garage will address a portion of the
current parking deficit in South Beach. The City, on a gross cost of construction basis, owns
24.4% of the project.
Since the Development Agreement for the projectwas executed in 2005, construction costs
have risen considerably. In addition, the regional economy has slowed simultaneously with
the national economy, causing the Developer's financial situation to tighten from a cost and
credit perspective. Since the City is a partial owner of the garage, the Developer is
requesting that the project be considered a "City" project for the purposes of the permit fees,
and therefore the Project would qualify for a partial fee waiver.
Based on the public benefit of the project, as well as the City's partial ownership in the
project, staff is supportive of this request. The Developer will continue to pay all remaining
permit fees for the project.
Conclusion
The Administration recommends the City Commission approve the project as a partial Ciry
project and waive 24.4% of qualifying City fees in the amount of $211,711.02. For purposes
of this resolution, qualifying City fees are the Building Permit fees and the Public Works
Right of Way fee.
JMG/TH/kc
T:IAGENDA120081April 161RegulartflFTH AND aLTON FEE WAIVER.doc