388-2001 RESO
RESOLUTION NO. 388-2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING
THE CHAIRMAN AND SECRETARY TO EXECUTE A LEASE
AGREEMENT BETWEEN TRG-SSDI, LTD., THE CITY OF MIAMI
BEACH AND THE MIAMI BEACH REDEVELOPMENT AGENCY,
APPROPRIATING $1,149,336 FROM THE SOUTH POINTE
REDEVELOPMENT TRUST FUND FOR THE PAYMENT OF THE
CAPITAL COST OF, NOT TO EXCEED, 108 PARKING SPACES IN
THE GARAGE AT THE MURANO AT PORTOFINO,
APPROPRIATING $101, FROM THE SOUTH POINTE
REDEVLOPMENT TRUST FUND, FOR THE SINGLE
INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR
TERM OF THE LEASE, AND APPROPRIATING $6,000, FROM THE
SOUTH POINTE REDEVLOPMENT TRUST FUND, FOR THE
PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE
FIRST YEAR AS PROVIDED IN THE LEASE; AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the Miami Beach Redevelopment Agency ("RDA"), entered into an agreement
dated November 7,1995 (the "Development Agreement"), with West Side Partners, Ltd., a Florida
limited partnership ("West Side"), East Coastline Development Ltd., a Florida limited partnership,
404 Investments, Ltd., a Florida limited partnership, Azure Coast Development, Ltd., a Florida
limited partnership, Beachwalk Development Corporation, a Florida corporation, Porto fino Real
Estate Fund, Ltd., a Florida limited partnership, St. Tropez Real Estate Fund, Ltd., a Florida limited
partnership, and Sun & Fun, Inc., a Florida corporation (collectively the "Portofino Entities") and
the City of Miami Beach, Florida (the "City"); and
WHEREAS, pursuant to the Development Agreement, the City, RDA and West Side entered
into a Parking Agreement, dated as ofJanuary 10, 1996, pursuant to which West Side would provide
parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be
constructed on the parcel known as SSDI South (the "Parking Agreement"); and
WHEREAS, the Parking Agreement survived the 1995 Settlement Agreement with
Portofino and was further amended by the 1998 Settlement Agreement approved on September 23,
1998, and provided for parking to be constructed on both SSDI-South and SSDI- North; and
WHEREAS, the aforestated Parking Agreement also provides for the Agency to pay the
capital costs, base rent payment and pro-rata share of operating expenses for 108 parking spaces on
SSDI-South; and
WHEREAS, in accordance with the Parking Agreement and 1998 Settlement Agreement,
TRG-SSDI, Ltd., a Florida limited partnership, as successor developer of a portion of the parcel
known as ssm South, is providing a lease for 108 parking spaces to be located within the Murano
at Porto fino Parking Garage at a capital cost of $1,149,336, which is based on $10,000/space,
adjusted for CPI-U; and
WHEREAS, while the lease provides for 108 parking spaces, the final number of parking
spaces, due to design constraints, will be between 102-108 parking spaces, and upon completion and
execution, the lease will be modified to reflect the actual number of spaces on-site and available; and
WHEREAS, according to the Lease Agreement, the City/RDA is required to pr~ay "Base
Rent" to TRG-SSDI which is defined as: (a) a "Purchase Price Component" defined as the
$1,149,336 capital cost for the improvements, and (b) a single installment of base rent of$101 for
the initial 101-year lease term, and will pay the proportionate share of operating expenses in
advance, on a monthly basis, which share is estimated to be $6,000; and
WHEREAS, in order to determine the cost estimate of the share of taxes, insurance and
maintenance, there is no separate tax assessment for the Murano Garage area space, nor has Miami-
Dade County, at this time, determined that a separate tax assessment could be obtained since the
property is going to be subject to a condominium with interest shares in the total value of the
property; and
WHEREAS, should Miami-Dade County determine in the future that this area could be
subject to a separate assessed value and submit a bill, that would become the City's responsibility
and the methodology for reimbursement would be determined at that time; and
WHEREAS, the $6,000 figure represents the cost of insurance, which is based on the
percentage of construction costs, approximately 2.5% of the total building as the area used by the
parking spaces for the marina; and
WHEREAS, the total insurance premium for the tower is $240,000 so that the RDAlCity's
contribution to insurance for the first year would be $6,000; and
WHEREAS, the $6,000 in proportionate operating expenses may be further reduced as a
result of the City's Fourth Amendment to the Marina Lease Agreement, which provides for the City
and the Marina Operator to enter into a garage management or operating agreement that further
provides for the Marina lessee to be responsible for routine security, maintenance and insurance for
the operation of the Marina parking; and
WHEREAS, in accordance with the South Pointe Redevelopment Plan, the RDA is to
provide and maximize the parking facilities in the district.
NOW THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY OF THE CITY OF
MIAMI BEACH, FLORIDA, that Chairman and Member of the Miami Beach Redevelopment
Agency herein authorize the Chairman and Secretary to Execute a Lease Agreement between
TRG-SSDI, Ltd., the City of Miami Beach and the Miami Beach Redevelopment Agency,
appropriating $1,149,336 from the South Pointe Redevelopment Trust Fund for the payment ofthe
capital cost of, not to exceed, 108 parking spaces in the garage at the Murano at Porto fino,
appropriating $101, from the South Pointe Redevlopment Trust Fund, for the single installment of
base rent for the initial 1 0 I-year term of the Lease, and appropriating $6,000, from the South Pointe
Redevlopment Trust Fund, for the proportionate share of operating expenses for the first year as
provided in the Lease; and providing for an effective date.
PASSED and ADOPTED this 27th day ofJune, 2001.
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SECRETARY
JMG/CMC/rar
T:\AGENDA\2001\JUNZ701\RDA\PORT-PKG.RES
APPROVED 181'0
FORM" LANGUAGI
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MURANO
o I HAY 11 PM 4: 28
at Ponofino
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May 16,2001
Ms. Christina M. Cuervo
Assistant City Manager
City of Miami Beach
1700 Con'/ention Center Drive
Miami Beach, FL 33139
Ms. Alexandra Rolandelli
Redevelopment Agency
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Mr. Robert W. Christoph, President
Miami Beach Marina
300 Alton Road
Miami Beach, FL 33139
RE:
Murano at Portofino
Dear Ms. Cuervo, Ms. Rolandelli and Mr. Christoph:
Enclosed herewith please find plans for the first floor parking garage for Murano at _Porto fino
with the spaces: to !Ie utilized by the marina operator. These plans were pre.viously supplied to you
on October 11, 2000. Weare also including a set of specitications that were originally delivered to
Mr. Christoph by Tom Daly on May 4.
We net'd to conclude a lease for this space as soon as possible. We are already 40% completed on
the entire garage ~tructure. Ms. Cuervo had asked for a cost estimate of the marina's share of
taxes, insurance and maintenance. To that end, we have no separate tax assessment for this space,
nor has Miami-Dade County, at this time, determined that one could be obtained since the
propt'rty is going to I:>e subject to a condominium with interest shares in the total value of the
property. Should Miami-Dade O)unty dt'termine in the future that this area could be subject to a
separate assessed value and submit a bill, that would become the City's responsibility and the
Association for the condominium WiJUltl determine the methodology for reimbursement. As to the
insurance figure, we have attributed, based on the percenta~e af construction costs, approximately
2.5% of the total building as the area used by the parking spaces for the marina. The total .
insurance premium for the tower is $240,000 so that the marina/City's contribution to insurance
for the first year wouid be $6,000. We have designed .hose Iigh(s that are not required for
emergency lighting by the tire department on a separate meter. Those lights required for
emergency are included in the Association's house panel and may not be isolated and the cost for
such operation is de minim us.
1000 South PCinte Drive. Miami 8each, Ft."....ida 33139. Tel 305.604,2088.1,877.604,2088. Fax 305.604.2050
, ,":,,'r,jC;)",.),-:e;m
Should you have questions with regard to the enclosures. please do not hesitate to eaIl.
Sincerely, ~
('I } ,!::f.<-{'-~"7'-..
'~bl /,..-
/1' -- /
AOY,' E M. BRONSON
//Project Director
'-'
ec: Tony Albanese
Tom Daly
Matt Gorson
"
...
*.
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
TO:
FROM:
SUBJECT:
REDEVELOPMENT AGENCY MEMORANDUM NO. 01- 3G"
Chairman and Members of the
Miami Beach Redevelopment Agency
Jorge M. Gonzalez ~
Executive Director
DATE: June 27, 2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN
AND SECRETARY TO EXECUTE A LEASE AGREEMENT BETWEEN
TRG-SSDI, LTD., THE CITY OF MIAMI BEACH AND THE MIAMI BEACH
REDEVELOPMENT AGENCY, APPROPRIATING $1,149,336 FROM THE
SOUTHPOINTE REDEVELOPMENT TRUST FUND FOR THE PAYMENT
OF THE CAPITAL COST OF, NOT TO EXCEED, 108 PARKING SPACES
IN THE GARAGE AT THE MURANO AT PORTOFINO, APPROPRIATING
$101, FROM THE SOUTH POINTE REDEVLOPMENT TRUST FUND, FOR
THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL
101-YEAR TERM OF THE LEASE, AND APPROPRIATING $6,000, FROM
THE SOUTH POINTE REDEVLOPMENT TRUST FUND, FOR THE
PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST
YEAR AS PROVIDED IN THE LEASE; AND PROVIDING FOR AN
EFFECTIVE DATE.
RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
The Miami Beach Redevelopment Agency ("RDA"), entered into an agreement dated November 7,
1995 (the "Development Agreement"), with West Side Partners, Ltd., a Florida limited partnership
("West Side"), East Coastline Development Ltd., a Florida limited partnership, 404 Investments,
Ltd., a Florida limited partnership, Azure Coast Development, Ltd., a Florida limited partnership,
Beachwalk Development Corporation, a Florida corporation, Portofino Real Estate Fund, Ltd., a
Florida limited partnership, St. Tropez Real Estate Fund, Ltd., a Florida limited partnership, and Sun
& Fun, Inc., a Florida corporation (collectively the "Porto fino Entities") and the City of Miami
Beach, Florida (the "City").
AGENDA ITEM
38
6-J.7-01
DATE
~()lJTti V()I~I:
~edevel()pment Ulstr1ct
CITY CI:~I:~
I:ledevel()pment Uistrict
June 27. 2001
RDA - Commission Memorandum
TRG-SSD1. Ltd. Agreement
Page 2
Pursuant to the Development Agreement, the City, RDA and West Side entered into a Parking
Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking
spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed
on the parcel known as SSDI South (the "Parking Agreement"). The Parking Agreement survived
the 1995 Settlement Agreement with Portofino and was further amended by the 1998 Settlement
Agreement approved on September 23, 1998, and provided for parking to be constructed on both
SSDI-South and SSDI-North. The aforestated Parking Agreement survives the 1995 Settlement
Agreement with Porto fino and provides for the Agency to pay the capital costs, base rent payment
and pro-rata share of operating expenses for 108 parking spaces on SSDI-South.
Together with the approval of the 1998 Settlement Agreement, the City Commission approved a
Lease Agreement for 115 parking spaces, laundry and bathroom facilities in the Yacht Club at
Portofino. On March 17, 1999, the Agency Board appropriated funding for the capital costs and
proportionate share of operating expenses.
In accordance with the Parking Agreement and 1998 Settlement Agreement, TRG-SSDI, Ltd., a
Florida limited partnership, as successor developer of a portion of the parcel known as SSDI South,
is providing a lease for 108 parking spaces to be located within the Murano at Porto fino Parking
Garage at a capital cost of$I,149,336, which is based on $10,000/space, adjusted for CPI-U. No
laundry or bathroom facilities will be provided in this facility. Attached for approval, is the
proposed Lease Agreement for the parking spaces at the Murano, by and among TRG-SSDI, Ltd.,
the City and the RDA, that mirrors the Lease Agreement with the Yacht Club at Portofino.
As of May 16, 2001, the parking garage at Murano at Portofino was 40% complete. The
construction of said facilities has commenced and is estimated to be completed in November 2001.
While the lease provides for 108 parking spaces, the final number of parking spaces, due to design
constraints, will be between 102-108 parking spaces. Upon completion and execution, the lease will
be modified to reflect the actual number of spaces on-site and available.
According to the Lease Agreement, the City/RDA is required to prepay "Base Rent" to TRG-SSDI
which is defined as: (a) a "Purchase Price Component" defined as the $1,149,336 capital cost for the
improvements, and (b) a single installment of base rent of$IOI for the initial 10 I-year lease term,
and will pay the proportionate share of operating expenses in advance, on a monthly basis, which
share is estimated to be $6,000.
In order to determine the cost estimate of the share of taxes, insurance and maintenance, there is no
separate tax assessment for the Murano Garage area space, nor has Miami-Dade County, at this time,
determined that a separate tax assessment could be obtained since the property is going to be subject
to a condominium with interest shares in the total value of the property. Should Miami-Dade County
determine in the future that this area could be subject to a separate assessed value and submit a bill,
that would become the City's responsibility and the methodology for reimbursement would be
June 27, 2001
RDA - Commission Memorandum
TRG-SSDl, Ltd. Agreement
Page 3
determined at that time. The $6,000 figure represents the cost of insurance, which is based on the
percentage of construction costs, approximately 2.5% of the total building as the area used by the
parking spaces for the marina. The total insurance premium for the tower is $240,000 so that the
RDAlCity's contribution to insurance for the first year would be $6,000.
The $6,000 in proportionate operating expenses may be further reduced as a result of the City's
Fourth Amendment to the Marina Lease Agreement, which provides for the City and the Marina
Operator to enter into a garage management or operating agreement that further provides for the
Marina lessee to be responsible for routine security, maintenance and insurance for the operation of
the Marina parking.
In accordance with the South Pointe Redevelopment Plan, the RDA is to provide and maximize the
parking facilities in the district. Therefore, it is recommended that the Chairman and Members of
the Miami Beach Redevelopment Agency should adopt the Resolution, appropriating $1,149,336
in capital costs, the $101 representing the single installment of base rent, and $6,000 in annual pro-
rata share of operating expenses from the South Pointe Redevelopment Trust Fund.
JMG/C~rar
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