2008-26969 ResoRESOLUTION NO. 2008-26969
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 AN
AGREEMENT BETWEEN THE CITY AND SCOTT
ROBINS COMPANIES, INC., PURDY PARTNERS, LLC.,
PURDY PARTNERS 1919, LLC., AND 1849 PURDY
PARTNERS, LLC. (COLLECTIVELY, "SELLER"), FOR
THE PURPOSE OF PURCHASING AIR RIGHTS AND
CERTAIN PORTIONS OF THE LAND FOR THE
DEVELOPMENT OF AN APPROXIMATELY 458-SPACE
PARKING GARAGE WITH GROUND FLOOR RETAIL, IN
THE NOT TO EXCEED AMOUNT OF $13 MILLION;
APPROPRIATING $9 MILLION AS FOLLOWS:
$4,181,941 FROM MID-BEACH PARKING IMPACT FEES
FUND 155; $2,481,976.39 FROM
PARKING OPERATIONS FUND 480, INCLUDING RE-
APPROPRIATION OF $1,481,976.39 PREVIOUSLY
APPROPRIATED FOR 16TH STREET
GARAGE REPAIRS ($425,000), 7TH STREET GARAGE
2008/09 REPAIRS ($360,000), COLLINS AND 84TH
STREET SURFACE LOT RENOVATION ($452,544.45),
13TH STREET PARKING GARAGE FY 2008/09
MAINTENANCE ($90,000), 17TH STREET PARKING
GARAGE FY 2008/09 MAINTENANCE ($135,000), AND
DESIGN OF THE CULTURAL CAMPUS PARKING
GARAGE ($19,431.94); $2,336.082.61 FROM PARKING
REVENUE BOND FUND 481, INCLUDING RE-
APPROPRIATION OF $1,812,455.55 PREVIOUSLY
APPROPRIATED FOR SYSTEMWIDE METER
ACQUISITION, INSTALLATION OF 250 PAYSTATIONS,
AND PAY-ON-FOOT MACHINES, WITH FUNDING TO
BE REPLACED BY $1,812,455.55 IN PARKING
OPERATIONS FUND 480 PREVIOUSLY
APPROPRIATED FOR COLLINS AND 84TH STREET
SURFACE PARKING LOT RENOVATION
($272,455.55), AND 5301 COLLINS AVENUE SURFACE
PARKING LOT RENOVATION ($1,540,000); FURTHER
APPROPRIATING $425,000 IN ANCHOR GARAGE
FUND 463 TO REPLACE FUNDING FOR 16TH STREET
GARAGE, AND $360,000 FROM 7TH STREET GARAGE
FUND 142 TO REPLACE FUNDING FOR 7TH STREET
FY 2008/09 REPAIRS; AND AUTHORIZING
APPROPRIATION OF REPLACEMENT FUNDING IN
THE AMOUNT OF $2,509,431.94 FOR COLLINS AND
84TH STREET SURFACE PARKING LOT RENOVATION,
5301 COLLINS AVENUE SURFACE PARKING LOT
RENOVATION, 13TH STREET PARKING GARAGE FY
2008/09 MAINTENANCE, 17TH STREET PARKING
GARAGE FY 2008/09 MAINTENANCE, AND DESIGN
FEES FOR THE CULTURAL CAMPUS PARKING
GARAGE, UPON SALE OF FUTURE PARKING
REVENUE BONDS; FURTHER DIRECTING THE CITY
MANAGER, FOLLOWING EXECUTION OF THE
AGREEMENT, TO TAKE ANY AND ALL SUCH
ACTIONS, AS NECESSARY TO EFFECTUATE THE
PROPOSED TRANSACTION INCLUDING, WITHOUT
LIMITATION, THE PREPARATION AND EXECUTION OF
ANY RELATED DOCUMENTS; AND FURTHER
AUTHORIZING THE CITY MANAGER TO TAKE SUCH
ACTION AS NECESSARY, AND AS RELATED TO THIS
TRANSACTION, TO INITIATE THE RELOCATION OF
THE PROPERTY MAINTENANCE FACILITY FROM
FLAMINGO PARK TO THE CITY OWNED PROPERTY
LOCATED AT 1833 BAY ROAD.
WHEREAS, The Seller controls a number of parcels on the block bounded by
Purdy Avenue to the west, Bay Road to the east, 20th Street to the north, and 18th Street
to the south.; and
WHEREAS, the City and Seller have been in discussions to develop a public
parking garage, with ground floor retail, in the Sunset Harbor neighborhood; and
WHEREAS, on March 6, 2008, the Finance and Citywide Projects Committee
(Committee) directed the Administration to move forward with the analysis of the Project;
and
WHEREAS, on June 18, 2008, the Committee the initial proposal for the Project
and recommended that the Administration proceed to negotiate an agreement with
Seller; and
WHEREAS, on November 18, 2008, the Committee considered a proposed
agreement between City and Seller, and recommended that the Administration present
the final agreement to the City Commission at its December 10, 2008 meeting; and
WHEREAS, City agrees to fund the purchase of the Tremont parcel for $8.5
million and will receive Air Rights over the parcel (the "First Closing"), which will occur on
or before March 31, 2009; and
WHEREAS, City agrees to pay its portion (65%) of additional pre-development
and due diligence costs that exceed the current Pre-development Agreement between
the City and Seller; and
WHEREAS, at the time of the First Closing, Seller will assign its Agreement with
Arquitectonica to the City, for the design of the Project; and
WHEREAS, after the First Closing, the City will have three (3) years to secure
financing for the Project; and
WHEREAS, in the event that financing become available, City shall purchase the
Air Rights over the remaining property owned by Seller (the "Second Closing"); and
WHEREAS, City and Seller have negotiated an attached final agreement, and
the Administration recommends that the Mayor and City Commission approve said
agreement.
APPROVED AS TQ
FORM & LANGUAGE
NOW, THEREFORE, BE IT 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 an Agreement
between the City and Scott Robins Companies, Inc., Purdy Partners, LLC., Purdy
Partners 1919 LLC., and 1849 Purdy Partners, LLC. (collectively, "Seller"), for the
purpose of purchasing air rights and certain portions of the land, for the development of
an approximately 458-space public parking garage with ground floor retail, in the not to
exceed amount of $13 million; appropriating $9 million as follows: $4,181,941 from Mid-
Beach Parking Impact Fees Fund 155; $2,481,976.39 from Parking Operations Fund
480, including the re-appropriation of $1,481,976.39 previously appropriated; and
$2,336,082.61 from Parking Revenue Bond Fund 481, including re-appropriation of
$1,812,455.45 previously appropriated; further appropriating $425,000 from .Anchor
Garage Fund 463 to replace funding for 16th Street Garage repairs and appropriating
$360,000 from 7th Street Garage Fund 142; Authorizing appropriation in the amount of
$2,509,431.94 upon the sale of future parking revenue bonds; further directing the City
Manager, following execution of the agreement, to take any and all such actions, as
necessary to effectuate the proposed transaction including, without limitation, the
preparation and execution of any related documents; and further authorizing the City
Manager to take such action as necessary, and as related to this transaction, to initiate
the relocation of the Property Maintenance Facility from Flamingo Park to the City owned
property located at 1833 Bay Road.
PASSED and ADOPTED this 10th day of December, 2008
ATTEST:
M OR
Matti Herrera Bower
CITY CLERK
Robert Parcher
C:\Documents and Settings\econcrok\Desktop\New Briefcase\Crowder\Commission Items\6th and Lenox Assignment Reso.doc
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COMMISSION ITEM SUMMARY
', A Resolution approving a purchase and sale agreement between the City and Scott Robins Companies,
~, for the development of a public parking garage on Purdy Avenue.
Condensed Title:
Key Intended Outcome Supported:
Improve Parking Availability; Increase Commercial Service Options
Supporting Data (Surveys, Environmental Scan, etc.):
77% of residents rated availability of parking across Miami Beach as too little or much too little.
Issue:
Shall the Ma or and Cit Commission a rove the Purchase and Sale A reement?
Item Summa /Recommendation:
The Scott Robins Companies 4"SRC") controls a number of parcels on the block bounded by Purdy Avenue to the
west, Bay Road to the east, 20 h Street to the north, and 18th Street to the south. SRC has indicated to the City that
one of the parcels, currently owned by Tremont Towing, is currently under an Option Agreement, which expires on
December 31, 2008, if the City and SRC do not move forward with a planned transaction. The City and SRC have
been discussing a purchase and sale agreement to locate a parking garage in the area of Maurice Gibb Park and
Sunset Harbor. The Administration and SRC continued negotiations, and on November 18, 2008, the Finance and
Citywide Projects Committee considered the proposed transaction between the parties. At the meeting, the
Committee approved a motion to present the proposed project to the Commission, as it is currently contemplated in
the draft agreement and subject to final negotiations. At the request of the Finance and Citywide Projects Committee,
the Administration requisitioned an appraisal from J.B. Alhale ~ Associates, to determine the market value of the
project site and its various parts. The appraiser made a physical, inspection of the subject sites, reviewed the site
surveys dated July 26, 2008, and the building plans dated August 1, 2008 and prepared by Arquitectonica. He also
analyzed market data and parking revenue statistics for the City's South Beach garages. The estimate of market
value of Fee Simple Interest in the project site is $13,050,000, and the estimate of the market value of the air-rights is
$6,045,000. This $9 million appropriation provides $8.5 million for the costs associated with the First Closing,
additional predevelopment costs, design fees, and other expenses related to the Project as well as the initial actions
related to the relocation of Prope Maintenance from Flamingo Park.
Advisory Board Recommendation:
On November 18, 2008, the Finance and Citywide Projects Committee recommended that the agreement be
presented to the Commission on December 10, 2008, and further recommended the following:
Pay $8.5 million for the Tremont Towing site where Scott Robins would own the ground floor and the City would own
the air rights above; proceed with the design from the Arquitectonica contract; secure financing in 3 years; pay an
additional $4.5 million for the remainder of the air rights; bid the project out and build the garage; and if the City could
not achieve the financing by the deadline, Scott Robins would provide the City with the fee for the Tremont Towing
Financial Information:
Source of Amount Account
Funds: 1 $4,181,941 Parking Impact Fees Fund -Fund 155
2 $2,481,976.39 Parking Operations Fund 480
3 $2,336,082.61 Parking Revenue Bond Fund 481
OB Total $9,000,000
Financial Impact Summary:
Funds are not currently appropriated for the proposed transaction; therefore, Parking Revenue Bonds would need
to be issued. Unfortunately, bond market conditions currently preclude the issuance of bonds by the City prior to the
first closing, at which time the City must provide $9 million. The funding proposal also includes replacement of the
previously appropriated bond funding with parking operations funds by deferring other projects as a means to
ensure that the Ci 's Parkin Revenue Bonds are s ent as uickl as ssible.
Cit Clerk's Office Le islative Trackin
Kevin Crowder, City Manager's Office
Sign-0ffs:
De rtment Director sis City Manager ty Manager
KC TH JMG
nom- ~ ~~r
~ M~~~ ~~~~H AG DADA E z D-
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
MEMO #
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: December 10, 2008
SUBJECT: A RESOLUTION OF THE MAYOR D CITY COMMISSION OF THE CITY OF
.MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AGREEMENT BETWEEN THE CITY AND
SCOTT ROBINS COMPANIES, INC., PURDY PARTNERS, LLC., PURDY
PARTNERS 1919, LLC., AND 1849 PURDY PARTNERS, LLC.
(COLLECTIVELY, "SELLER"), FOR THE PURPOSE OF PURCHASING AIR
RIGHTS AND CERTAIN PORTIONS OF THE LAND FOR THE DEVELOPMENT
OF AN APPROXIMATELY 458-SPACE PARKING GARAGE WITH GROUND
FLOOR RETAIL, IN THE NOT TO EXCEED AMOUNT OF $13 MILLION;
APPROPRIATING $9 MILLION AS FOLLOWS: $4,181,941 FROM MID-BEACH
PARKING IMPACT FEES FUND 155; $2,481,976.39 FROM
PARKING OPERATIONS FUND 480, INCLUDING RE-APPROPRIATION OF
$1,481,976.39 PREVIOUSLY APPROPRIATED FOR 16TH STREET
GARAGE REPAIRS ($425,000), 7TH STREET GARAGE 2008/09 REPAIRS
($360,000), COLLINS AND 84TH STREET SURFACE LOT RENOVATION
($452,544.45), 13TH STREET PARKING GARAGE FY 2008/09 MAINTENANCE
($90,000), 17TH STREET PARKING GARAGE FY
2008/09 MAINTENANCE ($135,000), AND DESIGN OF THE CULTURAL
CAMPUS PARKING GARAGE ($19,431.94); $2,336.082.61 FROM PARKING
REVENUE BOND FUND 481, INCLUDING RE APPROPRIATION OF
$1,812,455.55 PREVIOUSLY APPROPRIATED FOR SYSTEMWIDE METER
ACQUISITION, INSTALLATION OF 250 PAYSTATIONS, AND PAY-ON-FOOT
MACHINES, WITH FUNDING TO BE REPLACED BY $1,812,455.55 IN
PARKING OPERATIONS FUND 480 PREVIOUSLY APPROPRIATED FOR
COLLINS AND 84TH STREET SURFACE PARKING LOT RENOVATION
($272,455.55), AND 5301 COLLINS AVENUE SURFACE PARKING LOT
RENOVATION ($1,540,000); FURTHER APPROPRIATING $425,000 IN
ANCHOR GARAGE FUND 463 TO REPLACE FUNDING FOR 16TH STREET
GARAGE, AND $360,000 FROM 7TH STREET GARAGE FUND 142 TO
REPLACE FUNDING FOR 7TH STREET FY 2008/09 REPAIRS; AND
AUTHORIZING APPROPRIATION OF REPLACEMENT FUNDING IN THE
AMOUNT OF $2,509,431.94 FOR COLLINS AND 84TH STREET SURFACE
PARKING LOT RENOVATION, 5301 COLLINS AVENUE SURFACE PARKING
LOT RENOVATION, 13TH STREET PARKING GARAGE FY 2008/09
MAINTENANCE, 17TH STREET PARKING GARAGE FY 2008/09
MAINTENANCE, AND DESIGN FEES FOR THE CULTURAL CAMPUS
PARKING GARAGE, UPON SALE OF FUTURE PARKING REVENUE BONDS;
FURTHER DIRECTING THE CITY MANAGER, FOLLOWING EXECUTION OF.
Commission Memorandum -December 10, 2008
Purdy Avenue Garage Agreement
Page 2 of 8
THE AGREEMENT, TO TAKE ANY AND ALL SUCH ACTIONS, AS NECESSARY
TO EFFECTUATE THE PROPOSED TRANSACTION INCLUDING, WITHOUT
LIMITATION, THE PREPARATION AND EXECUTION OF ANY RELATED
DOCUMENTS; AND FURTHER AUTHORIZING THE CITY MANAGER TO TAKE
SUCH ACTION AS NECESSARY, AND AS RELATED TO THIS TRANSACTION,
TO INITIATE THE RELOCATION OF THE PROPERTY MAINTENANCE
FACILITY FROM FLAMINGO PARK TO THE CITY OWNED PROPERTY
LOCATED AT 1833 BAY ROAD.
Administration Recommendation
Adopt the Resolution.
Backcround
The City and SRC have been discussing the development of a public parking garage with
ground floor retail in the area of Maurice Gibb Park and Sunset Harbor (the Project). The
concept for this proposed project was referred by the City Commission on January 16, 2008
to the Finance and Citywide Projects Committee for further discussion.
The Scott Robins Companies ("SRC") controls a number of parcels on the block bounded by
Purdy Avenue to the west, Bay Road to the east, 20"' Street to the north, and 18"' Street to
the south. SRC has indicated to the City that one of the parcels, currently owned by Tremont
Towing, is currently under an Option Agreement, which expires on December 31, 2008, if the
City and SRC do not move forward with a planned transaction.
The initial discussions centered around accomplishing several objectives, including the
City's relocation of Property Management from Flamingo Park, adding parking inventory and
additional retail/restaurant amenities to the Sunset Harbor area. The economics of the
potential transaction include consideration for land costs and transfer of title for air rights to
the City; a continuing an-angement for SRC to operate the retail/restaurant space (by long
term lease); and City performance of the construction.
The proposed Project provides a number of public benefits including the following three key
goals:
• facilitate the relocation of the Property Management Facility and redeveloping aCity-
owned property;
• encourage neighbofiood revitalization by increasing public parking and providing an
opportunity to better serve neighbofiood retail demand; and
• remove/relocate anon-conforming use from the Tremont Towing site.
The proposed transaction accomplishes these three goals, although the possibility remains
that Tremont Towing may continue operations at another location in the neighbofiood.
Letters of support from the Flamingo Park neighborhood as well as the homeowners
associations in the Sunset Harbor neighbofiood are attached as Exhibits D and E. Certain
restrictions on future towing operations have been proposed by the Sunset Harbor HOAs
and have been referred to the Planning Board for discussion.
Property Maintenance Facility
The City has an interest in relocating the Property Management Facility out of its current
Commission Memorandum -December 70, 2008
Purdy Avenue Garage Agreement
Page 3 of 8
location within Flamingo Park. The City currently owns three parcels at 1833 Bay Road,
which is across the street from the proposed Project. In previous discussion and proposals
to potentially move Property Management to the 1833 Bay Road site, one of the main
limiting factors has been the availability of sufficient parking. The Property Management
operation has about 75 vehicles and the 1833 Bay Road site is simply not large enough to
accommodate the operation and the parking for the operation.
The potential 458 space garage would make this possible as it would resolve the parking
issue that has precluded the City relocating Property Management into this space. City staff
has analyzed the 1833 Bay Road site, as well as the proposed Project. Staff believes that
relocating Property Management to the Bay Road site and having staff and City vehicles
parking in the proposed Project is a feasible solution that will work.
The current building at 1833 Bay Road would need to be demolished and a new structure
built on the site to accommodate the Property Management needs. The current Parking
operations on the site may be able to stay with the Property Management, although it is
possible that relocating one of the current Parking Department operations, either the sign
shop or the meter shop, to another location would make the Bay Road site more efficient.
The current Parking operation has approximately 45 vehicles. This will need to be studied
further in order for staff to bring the City Commission a final recommendation as to how
Property Management and Parking should interact on the site.
The Property Management site encompasses approximately 45,000 square feet, which
would be recaptured as Parkland if the relocation was accomplished. A preliminary estimate
of the cost of acquiring land in the neighbofiood for Park expansion is $150-200 per square
foot, or $6.7 to 9 million for an area the size of Property Management.
Parking/Retail Demand and Economic Development Stimulus
The Sunset Harbor neighbofiood is part of the Middle Beach commercial service area,
which demonstrates a deficiency in neighbofiood retail. The City performed an initial
economic development site analysis, which indicates that retail should do well in this
neighbofiood, primarily serving middle beach residents. These residents currently have to
travel to other areas since there is insufficient retail in mid-beach to meet their needs. The
proposed development could provide sustainable neighbofiood retail, which would generate
the need for approximately 135 parking spaces.
The Parking Department has indicated that there are currently peak periods with a parking
shortage in the area, such as evening hours and lunchtime. The estimated parking demand
for these peak periods is 30 spaces. There is anecdotal demand for valet parking storage in
the neighbofiood for restaurants, and other establishments, as well as for single-family
residents who have large events in their homes. The Parking Department estimates this
demand at approximately 50 spaces.
There have been initial discussions regarding parking overlay district in this area that could
serve as a catalyst for redevelopment of properties in the area, with the potential of
expanding the neighbofiood retail opportunities beyond that which would be included in the
garage. The preliminary estimate for this demand is 150-175 spaces.
Analysis
On March 6, 2008, the Finance and Citywide Projects Committee discussed the Project. The
Committee directed the Administration to move forvvard with the analysis of the Project and
Commission Memorandum -December 10, 2008
Purdy Avenue Garage Agreement
Page 4 of 8
return to the Committee in 90 days with a more detailed proposal.
On June 18, 2008, the Finance and Citywide Projects Committee reviewed the proposal and
recommended that the Administration proceed with negotiating an agreement with SRC.
The Administration and SRC continued negotiations and on November 18, 2008, the
Finance and Citywide Projects Committee again considered the proposed transaction. At
that time, the Administration outlined the points of a proposed agreement between the City
and SRC, for the City's purchase of Air Rights over property owned by SRC, for
development of the garage portion of the Project. SRC would retain the ground level for
development of the retail portion of the property. At the meeting, a motion was made by
Commissioner Weithom and seconded by Chairman Gross to present a final negotiated
agreement for the proposed Project to the City Commission on December 10, 2008.
The Finance and Citywide Projects Committee approved the proposed agreement for the
transaction and further recommended the following:
• Pay $8.5 million for the Tremont Towing site where Scott Robins would own the
ground floor and the City would own the air rights above;
• proceed with the design from the Arquitectonica contract;
• secure financing in 3 years;
• pay an additional $4.5 million for the remainder of the air rights;
• bid the project out and build the garage; and
• if the City could not achieve the. financing by the deadline, Scott Robins would
provide the City with the fee for the Tremont Towing site; or
• provide the City with $8.5 million and the project does not proceed.
The proposed transaction is presently structured as follows:
1) SRC will exercise its Option Agreement with Tremont. The City agrees to fund the
purchase of the Tremont parcel for $8.5 million and will receive Air Rights over the parcel
needed to construct the garage (excludes the Tremont Out-Parcel with the office building)
for this amount (at the First Closing, which will occur on or before March 31, 2009);
2) The City also agrees to pay its portion (65%) of additional pre-development and due
diligence costs that exceed the current Pre-development Agreement between the City and
SRC.
3) As part of the First Closing, SRC will assign its A/E Agreement with Arquitectonica to the
City, for the design of the Project, (which will be assumed by the City).
4) Following approval of the agreement between the City and SRC, the City has the right to
negotiate with Tremont and attempt to lower Tremont's asking price. If the price is lowered,
then the amount paid by the City in Item 1 above will be lower by a commensurate amount.
5) After the purchase of the Tremont parcel (the First Closing), the City will have three (3)
years to secure financing for the Project. During this time, SRC may sublet the property back
to Tremont in order to offset SRC's carrying costs (for its assemblage that makes the Project
plausible).
6) The City will finish the design with Arquitectonica and will bid the construction of the
Project if financing becomes available.
Commission Memorandum -December 10, 2008
Purdy Avenue Garage Agreement
Page 5 of 8
7) Should financing become available, the City will purchase the Air Rights over the
remaining property owned by SRC (which is necessary to construct the Project), for $4.5
million (the Second Closing).
8) Should the City not be able to secure financing within three (3) years from the effective
date of the agreement, then SRC may at its option:
a) Deed fee title to the ground of the Tremont parcel to City so that City owns
the entire parcel; or
b) SRC may elect to purchase City's Air Rights over Tremont parcel for $8.5
million, plus fees paid to Arquitectonica, plus the City's closing costs (from
the First Closing).
9) Assuming the Project proceeds, SRC remains responsible for all development costs for
the retail portion. The City is responsible for all development costs for the garage portion.
The Project and the aforestated key terms, are also summarized in the attached Term
Sheet.
Fundins~ Availability /Prioritization
Funds are not currently appropriated for the proposed transaction; therefore, Parking
Revenue Bonds would need to be issued. Unfortunately, bond market conditions currently
preclude the issuance of bonds by the City prior to the first closing, at which time the City
must provide $9 million. Due to the funding priority of the proposed Project in relation to
other items, the items listed in the third bullet below will be delayed .until such time that future
parking revenue bonds are issued. Since the First Closing must occur no later than March
31, 2009, the Administration has identified the following funding strategy:
$4,181,941 from (Middle Beach) Parking Impact Fee Fund 155;
$2,336,082.61 from Parking Revenue Bond Fund 481, including re-appropriation of
$1,812,455.55 previously appropriated for systemwide meter acquisition, installation
of pay on foot machines, and pay stations.
$2,481,976.39 from Parking Operations Fund 480, including re-appropriation of
$1,481,976.39 previously appropriated for:
0 16"' Street Garage Repairs
0 7"' Street Garage Repairs
o Collins and 84 Street Surface Lot Renovation
0 13"' Street Garage Maintenance
0 17"' Street Garage Repairs
o Cultural Campus Garage Design
The funding proposal also includes replacement of the previously appropriated bond funding
with parking operations funds by deferring other projects as a means to ensure that the
City's Parking Revenue Bonds are spent as quickly as possible. This $9 million appropriation
provides $8.5 million for the costs associated with the First Closing, additional
predevelopment costs, design fees, and other expenses related to the Project as well as the
initial actions related to the relocation of Property Maintenance from Flamingo Park.
Property Aapraisals
At the request of the Finance and Citywide Projects Committee on November 18, 2008, the
Administration requisitioned an appraisal from J.B. Alhale & Associates, to determine the
Commission Memorandum -December 10, 2008
Purdy Avenue Garage Agreement
Page 6 of 8
market value of the Project site and its various components. The full appraisal report was
provided via LTC; the executive summary is attached to this memorandum.
The appraiser made a physical inspection of the sites; reviewed the site surveys dated July
26, 2008; and the building plans dated August 1, 2008 and prepared by Arquitectonica. He
also analyzed market data and parking revenue statistics for the City's South Beach
garages. The estimate of market value of Fee Simple Interest in the Project site is
$13,050,000, and the estimate of the market value of the air-rights is $6,045,000.
Summary of Market Value Estimates:
Fee Simple Air Rights
Project Site $13,050,000 $6,045,000
Non-Tremont Parcels $5,925,000 $2,745,000
Tremont Site without the Out-Parcel $6,800,000 $3,150,000
Tremont Site $8,100,000
Tremont Out-Parcel $930,000
The estimated market value of the fee simple interest in the Project site and its various
components is as follows:
Proiect Site -The market value of fee simple interest in the Project site (excluding the
Tremont Out-Parcel), is $13,050,000. This market value was determined via the sales
comparison approach, in which 9 recent property sales, and 6 properties currently listed for
sale, were analyzed. The Sales Comparison Approach is based on a comparison between
recently sold comparable sites and the subject site, utilizing the price per square foot of
buildable area method of comparison. Based on the appraiser's analysis, $200 per square
foot of buildable area is a reasonable value estimate for the 43,500 square foot site:
43,500 SF x 1.5 FAR = 65,250 SF Buildable Area x $200/SF = $13,050,000
The Administration also requested that the appraiser provide the market value of fee simple
interest in the Tremont Parcel in its entirety ($8,100,000), and also of the Tremont Out-
Parcel ($930,000) and the balance of the site ($6,800,000).
Tremont Site - Based on the appraiser's analysis, $200 per square foot of buildable area is a
reasonable value estimate
27,000 SF x 1.5 FAR = 40,500 SF Buildable Area x $200/SF = $8,100,000
Tremont Out Parcel -Based on the appraiser's analysis, $165 per square foot of buildable
area is a reasonable value estimate, due to the inferior physical development potential of the
3,750 square foot site as a stand-alone site.
3,750 SF x 1.5 FAR = 5,625 SF Buildable Area x $165/SF = $928,125
Balance of Tremont Site -Based on the appraiser's analysis, $190-200 per square foot of
buildable area is a reasonable value range for this parcel.
23,250 SF x 1.5 FAR = 34,875 SF Buildable Area x $190/SF = $6,626,250
23,250 SF x 1.5 FAR =34,875 SF Buildable Area x $200/SF = $6,975,000
The difference between the sum of the Tremont Out Parcel and the balance of the Tremont
site ($7,730,000) and the market value of the entire site ($8.1 million) is $370,000, which
represents a premium for the land assemblage, as well as a discount due to the market
value of the Out-Parcel as a stand-alone site.
Commission Memorandum -December 10, 2008
Purdy Avenue Garage Agreement
Page 7 of 8
Non-Tremont Parcels -Based on the appraiser's analysis, $190-200 per square foot of
buildable area is a reasonable value range for this parcel.
20,250 SF x 1.5 FAR = 30,375 SF Buildable Area x $190/SF = $5,771,250
20,250 SF x 1.5 FAR = 30,375 SF Buildable Area x $200/SF = $6,075,000
The difference between the sum of the market value of the Non-Tremont Parcels plus the
Tremont Site w/o the Out-Parcel ($5,925,000 + $6,800,000 = $12,725,000) and the market
value of the entire project site ($13,050,000) is $325,000, and represents a premium for the
land assemblage.
Air Rights -The Administration also requested that the appraiser provide a value of the Air
Rights related to the project site. After arriving at estimates of the market value of the Fee
Simple Interest in the site, an Income Capitalization approach was utilized to determine the
value of the Air Rights. As part of the Air Rights Valuation, the appraiser analyzed the
parking revenue and operating expenses for the municipal parking garages located in South
Beach, as well as the Parking Department's proforma for the Purdy Avenue Garage in order
to project the revenue and operating expenses for the proposed garage. For Year 1, parking
revenue per space was estimated to be $2,000, with an operating expense of $1,250 per
space. The parking revenue/space was projected to increase at an annual rate of 12.5%,
while the operating expenses were projected to increase at an annual rate of 3%.
The appraiser utilized Discount Rates that ranged from 8.5% to 9.5%, along with a terminal
capitalization rate of 6.25% applied to Year Six net operating income to estimate the
Prospective Market Value of the Fee Simple Interest in the subject parking garage upon
completion of construction. According to the appraisal, the selected discount rate range
reflects current investors' yield requirements from similar type properties. Based on this
analysis, the estimated Prospective Market Value, utilizing the Discounted Cash Flow
Method was as follows:
Market Value with a Discount Rate of 9.0% $12,085,000
Less the estimated construction cost as per Marshall & Swift Cost Guide - $6.040.000
Equals the Residual Value attributable to the Land/Air Rights = $6,045,000
The estimated Air-Rights value of $6,045,000 represents 46.32% of the estimated fee
simple value of $13,050,000. According to the appraisal, °while the ground floor area with
31,850 SF of retail space utilizes only one of the five floors, the ground floor is the most
valuable component of the `development envelope' as retail rental rates are reported to be
$25 per square foot on a triple net basis fora `vanilla box' finish to be built-out by the tenant,
while parking spaces (approximately 330 SF of garage area per parking space) are
projected to generate an estimated $2,155/year or $6-7/SF of net operating income at future
stabilized operations."
It is important to note that following the Second Closing, in addition to the Air-Rights (which
have an estimated market value of $6,045,000), the City will receive a portion of the
remaining fee simple value for placement of the garage ramp and other related facilities.
Garas~e Oaerations
The Administration has prepared two pro-formas for the initial five years of operation, which
are attached. Both pro-formas take into account the initial start-up costs that will occur in the
first year. Additionally, the pro-formas assume that the retail component of the facility will
reach 90% occupancy at the end of year 1, with 100% occupancy during years 2-5. Finally,
both pro-formas assume 2% growth in annual revenues for years 3, 4 and 5.
Commission Memorandum -December 70, 2008
Purdy Avenue Garage Agreement
Page 8 of 8
The first pro-forma accounts for the spaces in the garage that will be utilized for City
operations, and therefore, will not generate revenue. During the first five years, the proforma
indicates that the facility will operate at a loss, although the amount of the loss diminishes
each year:
Year 1 Year 2 Year 3 Year 4 Year 5
Profit/Loss -$415,072 -$109,284 -$102,665 -$96,269 -$89,799
Since the City's use of 120 spaces in the garage is a unique circumstance that supports
additional benefits related to this project, the Administration prepared a second pro-forma to
analyze the viability of this project as if it were a normal parking garage with ground floor
retail. In this scenario, the "City spaces" were not accounted for, and therefore were included
as revenue-generating spaces. Under this scenario, following the first year which includes
start-up costs, the garage would generate revenue:
Year 1 Year 2 Year 3 Year 4 Year 5
Profit/Loss -$142,650 $253,946 $267,830 $281,490 $295,370
Conclusion
The proposed Project provides a number of public benefits, which include neighbofiood
revitalization by providing opportunity to meet neighbofiood retail demand and increasing
public parking; it addresses City operational needs by facilitating the relocation of the
Property Management Facility and redeveloping aCity-owned property; and it removes a
non-conforming use. The Administration recommends that the Mayor and City Commission
approve the Resolution.
JMG/TH/kc
Attachments
Exhibit A -Term Sheet
Exhibit B -Appraisal Report Executive Summary
Exhibit C -Five-Year Proformas
Exhibit D -Flamingo Park Neighbofiood Letter of Support
Exhibit E -Sunset Harbor HOA Letters
Exhibit F -Agreement between CMB and SRC
T:WGENDA12008~December 10~RegularlPurdy Garage Memo.doc
EXHIBIT A
Term Sheet
The key terms are as follows:
Parties
• City of Miami Beach
• Scott Robins Companies
Project
43,500 square foot development site
458 space public parking garage (owned/operated/maintained by CMB)
31,000 square feet of ground floor retail (owned/operated/maintained by SRC)
Key Terms and Provisions:
• SRC exercises Option Agreement with Tremont. City pays $8.5 million for Air
Rights over Tremont parcel. City agrees to pursue financing for the project. City
also agrees to pay its portion of additional Pre-Development costs.
• SRC negotiates and enters into Agreement with Arquitectonica to finish
construction documents and prepare the documents for competitive bidding.
SRC assigns this Agreement to City. If financing is obtained, then City purchases
the air rights over the SRC parcels for the garage for an additional $4,500,000;
• City acquires an easement for key structural components and ramps;
• City shall be responsible for all costs of construction other than the retail space.
SRC will be financially responsible for the construction of the retail space. City
will construct the project and operate the garage portion.
• Should the City not secure financing and proceed with the project within three
years, one of the following will occur at the option of SRC:
o SRC deeds fee title to the ground of the Tremont parcel to City so that
City owns the entire parcel; or
o SRC may elect to purchase City's Air Rights over Tremont parcel for $8.5
million plus fees paid to Arquitectonica for the construction documents.
Retail
• Ground floor retail space may not be leased to "big box° tenants. SRC may
request a waiver of this restriction from the City Commission at a later date.
Public Benefits
City shall relocated the Property Management Division from Flamingo Park to a
nearby City-owned building, and 120 spaces shall be reserved in the garage for
the Division;
A minimum of 170 non-reserved, first-come first-served parking spaces shall be
available in the garage at all times.
EXHIBIT B
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EXHIBIT C
].B. A~,HAL~ 8L ASSt1C1ATES, I1+IC+
~t ESTATE a-P~ts~~s ~N~ ~ol~suLTAldTs
3475 SHERIDAN STREETr Sll~TE 313
HC?LLYW4]C~D, ~i,C1RIDA 33Q21
JGt~EF ALHALE, MAI
STATE +C>:ATIFIED GL~1F7tJll PtiJ41SE1c
t~tCl. R,~t3~00155~'
rte: l~~a ~e~.
Fly: 19543 9'81-708
E-tvl~i: l~~l,
T~@L~CiIII)CT ~ , 2(3413
(Nr. Kevin f~ncrwder - director
City of I+~ti:~rni >uh
Ecxrt-om~ 1~vcl~pat~U Divisidm &
Legislati:vc Affairs
171)0 Cunvonliun Ccnilrr Drive
+4th Floor
Miami Be~acb, t'1dCltla 331 ~~
~. (~;(,{~( 1 - 1$3$ i.NM1~ 4 •^++Ellil3 l./M1.riK~LLi ~Ll'i LVi~
l'arCCl ~ - 1835 P~rx1y Avemae» (~l~ ~. liarida
Pat~e1 ~ - ~~4t1 1:~y ttcc~d, ~lami 13eactr, Florida
Parcel ~ - 1916 icy Road, Miazni ]11, Florida
Parcel ~ - ~ ~ l~r(rdy Av+~ue, ~1a7iY1 Fltu~tlSt
1?ear 14'lr_ Cymwdef:
Purse td ydllr regatest fdr ~ cc~rnplete elf-r~a~nt~i~aad narr~tirr~ appr~u~l of il~t at~~e
rei'erenc~ed prrrla~rties, [ s~ulunit this appraisal cep.
legal L7~e~-criFtion:
Farr! 1: Eastern 1 !2 uf' l ~t 5, 131ack 14, 1 stand View Subdivision., rr~crrded ~ FIAt
~k ~. Page l IS of the 1'ul}li~ 1tec5ards of Miami=Uadc Gounty» Florida
P'sr~cel 2: Wcstcrn 112 of Lut 5, Blcxk 14, L~l~acul Vievr 9~bdivis'vnn, a~ t~aanrdod in Plat.
Book ~, Page 11S of the Public Revords ~l' 1'~ia~ni-t~cie t:omrty, Flarici~a
P~ctrl 3: Ldt ta, lllctck ld, Island View utadiv~um, as r~tttlccl m Flat Hoak b. Pagel 15
d~ [he Pttblic I'd4 of ~IaEnl-l~'8de'~4filtlty", i~lorda
P'rrrcel 4,: F.,as~ra 112 of Lv~ 7 anal all of Lnt $, €ilock 14, Island '1~iew Stthdivisic~n, sa
r+ec:c~rJal in Flat B~-csk 6, Page 115 dl' the Public ltecc~c~ of i~+[iaana-D+adc Gawut~r. Florida;
and Lets 1 and 2, Illack 114. and the eastern 7~ foct of Lot 3, f#1;rxic l~4-A. Isxland view
A~ddit~n, as recnrded in Flat Bonk 4, ljl4 0£ the Public Reovtds of llAiatati-I?~
f:cxrmy, Florida; Ion tho c~rorn 75 foci of Lot 3, Bl~: l~#--A w6ic1~ is the ~,'~5ty '~F ..
nc~tliern exteen~inn of the parcel, rcfcrrad to as Trcmc~ni fJut-Parcel ~''~
Parcel :4: Western 1 f2 of l.c~t 7, ll•lt~ck 14, Island Vic-~r 5ubclivision, tts xx~t+t3dd in Plat
~k b, Page 1 I5 of the Public Records of lvti~ui-I)aclo Gaunly. F{arri~ia.
Mr. Kevin Croun3er
I7~emhcr 1 + 2UU8
Pie Twc~
i Dave made a physical in.tion +~f the sut~~ct site;; ~atd rewieweil the site surveys dated .July
2b, Z[l08 ~ prepared by Blanes Sut'veyars, tnc_, thr building plans dated August I, 20t}g and
PTA lay ~-rtlaitieratoni~, as weq n.~ tnat~ket data. the Faricng revenue statastiwcs fnr the
multi-level public parking garages in South ih, wttic#t have a utilia~c3ci in ttre pin
of chic apprai~l report.
I have performed maritet res~-rth and anatys.s in cutler to pravide c~titnat~ cif the Higherst and
t Use anll the Market Value afi the Fc~c Simple Itcst in Pare 1, 2t 3, ~ and ~ as
der~ca~ilxxl herein {tlie nvcrali redevelapmcnt site, eaccltiding the aut-paroel); the Market Vahte
of the Fee Sittyple Int-i o[ the air-rights ut Parcels 1, 2r 3, 4 and ~ as descst~ed hercirx (tbe
avcrall redevelapme~rtt site, excluding the ~uut-pacc~el}; tl~c hie~rkkett ~'alu,c ctf the Fee Simple
Interest in Parcels 1, ~, 3 aiul 5 as described herein (the non-Tremarrt site}; the Markxx Value
of tt~e 1=c~c Simple interest of the air-rights in l'arccls 1, Z, 3 and 5 as cl~crlh herein. f dte ncxi-
`Tremont rites); the Market. Vatue cxf the F~ ,9impte Int~ut. in Parrxl 4 (excluding the Trctt~ant
Out-l'arceil as described herein; the Market Vah~c ctf the Fee Simple Irrter~t of the au'-t'ig,~~
iu Parcel 4 (cxclutling the 7`rcanc~nt Out-P~.rcel) as descr"t+eci herv-in; tiSe Market Vaht~r of the Fee
Simple lnteres-t in Parcel 4 {iix:luding t11e 'i'remant Out-Par~eel~ as descrih herein; anti tfic
[Market Value cif the Fee Simple lnter~t in the eastern ?5 feet crf L.ot 3, Blac]c IA~-A, [slated
View Additian, as recard~xl in. Plat l3ex~k '4, Rage l44 of ~: Puhlic iteeards ol- li+liamitlDade
C.atmty, Florida (the 3,70 Sl: nnrthe~rn extc~itto of the gar~~l. refiertecl to as 'Tretnant Out-
I'a~xl"). a.S of I~lavember Zl, 2,UU(~8.
It is my rstiac~tte that the ~iKrket Value afi the Pc:e ;Simple [ntt in Paroels 1, ~, ~, 4 and 5
as dcsa; ribed herein (the c~v~eratl reclc,r~:lu~p~nvGnt site, excludm:~, the cmt-paw!); ~e Market. ~laltu
of the Fee Simple Intc~st of the air-tights to Parcels 1, 2, 3, 4 artd 5 as dr~crbed heroin (thy
overall redeveic~rtnet~t site. exchulmg the cwt-parcel); the Matlcet Value +~I the Fe~c Simple
Ititeres+l in ParcSeLs I, 2, 3 stud 5 as deseribai herein. the Hero-Tt~e~nt sites}; the Mark+e# ~alu~
of the I~ee Simple Interest of th,c air-rig,Ytts in Parcels 1. ~, 3 and 5 as dcs~rt'h herein ~(thc natl.
7'rcttx~nt sites); the Matiret Value of the Fc~c Simple Interest in P'areel 4 ~exchuliug the Tremnt~
t"lut-Parcel} as described herein; the iiiarkct Value ®#' the Fee Simple Tmenest of the air-right
in Parcrt 4 (excJtyding thG Tremont Out~I''trrcel) as deccrihed hrrcn; the IVlarkct. Value nt the Fee
Simple Iuter~t in Parcel ~ (inching the Tt~ncant (jut-Parrel~ as described herein; and the
lularket Value of the Pre dimple Imcre~ in the es~tcrn 73 feet of Lcrt ~. Blc~ek tit--A* Lind
View ,~dditiou., as res~nrde,d inn Plat Book ~, Page 144 of the Public R,eeards of Miami-17'aade
C,rnmty, Fl+~rid~ (the 3, D55t1 SF ntutliern exuensiarn car the parcel, rclGrrexi to as "Trcnoant [Jut-
Parcel"~, as a# Navetnber 21, 2{ltJli, was.
IirIARKE'I' VALIII<: C!F ~ SINII'1a~ il-ITL~II.L~`ST
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MAItKE"I' VALUE OF 'i`li[t~~ AIR ItlCH"1"5
l[N PAStf: 1, ~., 3, 4 ANIa S
:4iX R~IILI~IO-N !7'C1RTY >E'iV~ TliiJllS~ibiD I1C}LLA-~S
Crmtimaed an next pope.. , .
J.B. ALHr4kLE ~ ASSO~CATES, INC.
REAL ESTATE APPRAISERS AND CON~l1LTANTS
dir. ~c~vin Crctvwiler
Irtacctrii~r 1, Z4Q8
i'a~c Tl~ruc
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FIDE ik~IILLIUN Nll~NE HUNiIREt] `1"V~'FN'TY FIVE THOUS~tD IIOI.LARS
[$5,92~,OQ0)
1HARKET VALUE €l-F TtiE AIR-RIOH`ffi
IAT PAIt~CF.I..S 1, .by 3 AND ~ ~f'~6~I7~'~"~i~7'M~i~+.~IV~'i~-Nr S
TV~O MILLION ~El'`~~ Htt~fl)It~il ~~i~ FiVE THt1US L1~OI~I.ARS
~~~~
MARKET VALUE OF FEE SI~iFLE 1N'rEi[tI~ST
1N i'ARt. 4 ('I'REM()N'T STTE), ~VITIIOUT THE t?U"r~!'ARUFI,
Si7~ MILLION Ei<GHT I~DIiED TIIOUD 1KJ-lail.~1-
(S6,S+OfI,~00)
hgA-Rt~r VALUE OF TILE AIR RIGHTS
IN PA-RC.`FaI, d {7'RE14i01VT SI7"E~, W1TIIf]UT Tt[L t3UT-PARCEL
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(~"-3,1~,a10~
RitF.T VALUE ~.1F FEE SIM~'I~H; iA~'t'ERffiT
1[N PARULI« 4 ft'RN.M(lN`C tii'1'>M~, I"I'H THE OUT•FARCLL
[~;iCH'I' 11~f[LLTOhT 41~~E AiJND~RED THOLE~At"~iiD iILA[i~
rv~u~cE~r ~~~ of FEE sr~r~~F I~Ri~T
ilv TREl~-IONT o~~r-I'ARC.LL, AS DFSCRIBt+'.~ ~
NINE IiL1NDI "rIIIR1"Y '7'HOIiSAi~ifl DOLLARS
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4inc~r+ely,
Jc~7xf E~Ihat~. 14i,A~I
ti'~ue (:ertfied ti~aeral A~!~rrais+er
Lim Nc~, RZ 0001557
).B. AL}~A4E tit ASSI~CIATES,I~C.
REAL ESTATE AFP"RAISERS Afi~1D C4NS~lLTANTS
EXHIBIT D
Flamingo Park Neighborhood Association
c/o Miami Beach Community Development Corp. i 9=1s Pennsvlvania Avenue
Miami Beach. FL 33139
March 6, 2008
To: Finance Committee /City of Miami Beach
Re: Relocation of CMB Property Management Facility from Flamingo Park
Dear Finance Committee Members:
Please accept this letter as the Flamingo Park Neighborhood Association's formal
endorsement and enthusiastic support of the proposed mixed-use development by
Scott Robins, of Scott Robins Companies, of property currently owned/occupied
by Tremont Towing, along with surrounding properties owned by Mr. Robins, all
located on land between Bay Road and Purdy Avenue, in the Sunset Harbor
neighborhood.
It is our understanding that, with the City's approval and partnership, this project
would perfectly serve the needs of Flamingo Park and Sunset Harbor
neighborhoods, and would increase the usefulness of property already owned by
the City, located across the street from the proposed site. The planned structure
would bring much-needed parking to Sunset Harbor businesses, and would house
the City's fleet of Property Management and employee vehicles.
We urge the Finance Committee to move quickly with its consideration and
approval of this proposal in order to ensure Mr. Robins' ability to exercise the
option he holds to buy the Tremont Towing site. It is our belief that the benefits to
both neighborhoods, to the City and its Property Management Department
employees, and to Mr. Robins, would justify many times over the expense to the
City and any disruption to the residents.
Thank you.
,~
r' Z~t"~~
~ ~'--
Robertson / Co-Chair J Johns / Co-Chair
EXHIBIT E
THE TOWNHOMES AT SUNSET HARBOUR
CONDOMINIlUM ASSOCIATION
1413-1415 SUNSET HARBOUR DRIVE
MIAMI BEACH, FL 33139
December 1, 2008
Mayor Matti Bower and Members of the Miami Beach City Commission
Miami Beach City Hall
1700 Convention Center Drive
Miami Beach, FL 33139
Honorable Mayor Bower and Commissioners:
I am writing on behalf of the Board of Directors and Owners of The Townhomes at Sunset
Hazbour Condominium Association to endorse the construction of the mixed-use Gazage Retail
Project currently being considered by you in the Sunset Hazbour Neighborhood.
Our Board feels that this project will be a catalyst to the future redevelopment of the Sunset
Harbour Neighborhood and will provide much-needed additional pazking for the existing
businesses and restaurants in this azea. The pazking structure will enable potential development of
future projects in that it may provide the necessary pazking to meet their requirements, thus
avoiding massive parking pedestals for those projects. Another great advantage to this project is
the ability of the City to relocate Property Management out of Flamingo Park which will provide
much needed additional green space for all residents and visitors to enjoy.
The location of this pazking garage will be the current site of Tremont Towing which we believe is
a definite improvement to our neighborhood. However, we aze also aware that there is a defimite
possibility that Tremont will relocate within the I-1 District. We believe this is a golden
opportunity for the City to take a more aggressive position with both Tremont and Beach Towing
which have been conducting their business in a manner not compliant with existing ordinances
and state and city traffic rules and regulations.
We all were aware of the existence and accepted the presence of these towing businesses when we
purchased our homes in Sunset Harbour. By the same token, we expected these companies to
conduct their business in a manner consistent with our laws and regulations. The situation today,
as you well know, is totally unacceptable. When we add to this the coming of approximately 120
city vehicles, plus new retail and commercial development, Fresh Mazket, the existing Publix and
our current restaurants, we must have important changes in the way these businesses should
operate and we hope that the City will take this juncture to implement this much needed change.
Mayor Bower and Commissioners
December 1, 2008
Page 2
Taking into consideration all the above facts, and in view of the current relationship between the
two towing companies and the City, we would condition our support for this project to the
following points:
1. Amend I-1 Light Industrial District to make a "towing service" a "conditional use."
2. Amend Suppler~ntary Use Regulations to include the following requirements for "motor
vehicle storage" as follows:
a. Require "storage of motor vehicles" in the I-1 Light Industrial District to be
approved as a "conditional use."
b. Add noise regulations for storage of motor vehicles that occur after 11 p.m
c. Require a landscape buffer
d. Require a buffering wall at a minimum height of 10 feet
e. Require all loading to be off street (interior to the storage lot.)
f. Require street setback of at least five feet
g. Require a roofed structure (pazking barn.)
h. Require off duty security detail between hours of 11 p.m and 8 a.m if storage lot is
open those hours.
i. Require traffic mitigation plan as to traffic circulation and congestion from towing of
vehicles entering and exiting azea.
j. Require on-site pazking for persons picking up towed vehicles
We feel that these conditions aze both reasonable and prudent given the changing character of the
Sunset Hazbour Neighborhood. They represent the best opportunity for the restoration of our
quality of life and will help guarantee that the quality of this part of our great City will be
preserved and enhanced.
We look forward to work with the Administration, the Commission and you, Madame Mayor, to
make this project a reality and achieve all the stated goals and objectives which in the long run
will not only benefit our neighborhood, but the entire City.
Respectfully,
Marilyn Freundlich,
President Board of Directors
The Townhomes at Sunset Harbour
mef
cc: Board of Directors Sunset Harbour North
Board of Directors Sunset Hazbour South
Mr. Jorge Gonzalez, City Manager