392-2001 RESO
./
RESOLUTION NO. 392-2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY APPROPRIATING
FUNDS IN THE AMOUNT OF $2,381,677 FROM SOUTH POINTE
TAX INCREMENT FUNDS, IN ACCORDANCE WITH THE
SETTLEMENT AGREEMENT AMONGST THE CITY OF MIAMI
BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY, AND
WEST SIDE PARTNERS LIMITED WITH RESPECT TO (A) VALET
PARKING OBLIGATIONS; (B) SEAWALL CONSTRUCTION
COSTS FOR SSDI-NORTH; (C) UTILITY RELOCATION COSTS;
AND (D) IN ACCORDANCE WITH A SURVIVING PROVISION OF
THE 1995 DEVELOPMENT AGREEMENT AND IN CONNECTION
WITH THE INDEMNITY PROVIDED FOR IN THE SETTLEMENT
AGREEMENT, THE ENVIRONMENTAL MITIGATION COSTS FOR
SSDI-NORTH; AND FURTHER APPROVING AND AUTHORIZING
THE CHAIRMAN AND SECRETARY TO EXECUTE A
SUPPLEMENTAL AGREEMENT AND A REVOCABLE LICENSE
AGREEMENT AMONG MURANO TWO, LTD., A FLORIDA
LIMITED PARTNERSHIP, MURANO THREE, LTD., A FLORIDA
LIMITED PARTNERSHIP, SUN & FUN, INC., A FLORIDA
CORPORATION, BEACHWALK DEVELOPMENT CORPORATION,
A FLORIDA CORPORATION, AZURE COAST DEVELOPMENT,
LTD., A FLORIDA LIMITED PARTNERSHIP, EAST COASTLINE
DEVELOPMENT, LTD., A FLORIDA LIMITED PARTNERSHIP,
AND SANDPOINT FINANCIAL, LTD., A FLORIDA LIMITED
PARTNERSHIP; THE CITY OF MIAMI BEACH, FLORIDA, THE
MIAMI BEACH REDEVELOPMENT AGENCY, AND MIAMI
BEACH MARINA ASSOCIATES, LTD., A FLORIDA LIMITED
PARTNERSHIP; AND FURTHER AUTHORIZING THE CHAIRMAN
AND SECRETARY TO EXECUTE AN AMENDED AND RESTATED
PARKING SUBLICENSE AMONG THE CITY OF MIAMI BEACH,
THE CITY OF MIAMI BEACH REDEVELOPMENT AGENCY AND
THE MIAMI BEACH MARINA ASSOCIATES, LTD.
WHEREAS, in November 1995, the City of Miami Beach, the Miami Beach
Redevelopment Agency and the Porto fino Group entered into a Development Agreement which was
terminated in June 1997; and
'1
WHEREAS, in October 1998, the parties entered into a Settlement Agreement that
transferred the deed to SSDI-North (which was held in escrow) to West Side Partners, Limited and
sets forth the obligations ofthe parties with respect to the Development ofSSDI-North and SSDI-
South parcels; and
WHEREAS, as part of the Settlement Agreement between the City of Miami Beach, the
Miami Beach Redevelopment Agency and West Side Partners Limited, it was contemplated that
West Side Partners would develop the SSDI-North parcel in two stages; and
WHEREAS, the Developer, The Related Companies (TRG), which is purchasing the
property from West Side Partners, has provided notice that it intends to develop SSDI-North parcel
and anticipates commencement of construction in September 2001; and
WHEREAS, construction on SSDI-North will consist of two high rise towers and related
amenities as approved and reflected in the concept plan, modified by Resolution No. 2001-24349
adopted by the City Commission on April 18, 2001; and
WHEREAS, construction sequence requirements dictate that construction initiate along the
southerly portion of SSDI-North which must be completed before the northerly portion is developed;
and
WHEREAS, in connection with this construction commencement, several pre-construction
activities must occur on SSDI-North and adjacent properties to support the proposed Murano Grande
construction activities; and
WHEREAS, the CityIRDA has certain financial obligations pursuant to the Settlement
Agreement for the pre-construction activities; and
WHEREAS, on June 27, 2001, the RDA Board approved and appropriated $3.2 million for
several pre-construction activities that are the CityIRDA's obligation and responsibility, pursuant
to the Settlement Agreement and to surviving provisions of the Development Agreement including
construction staging costs, curb cut costs, electrical utility relocation costs, seawall rehabilitation and
construction, along SSDI-South environmental remediation costs and replacement parking costs; and
WHEREAS, as part of the Fourth Amendment to the Marina Lease, specifically Section
3.1.1, the CityIRDA agreed to reimburse the Marina Lessee for valet parking services, to and from
the Marina to the replacement parking areas, up to the amount of $72,OOO/year, as adjusted by CPI,
during the period of construction and/or remediation; and
WHEREAS, one of the surviving provisions of the 1995 agreement with Portofino addresses
environmental assessment and remediation ofSSDI-North; and
p.l
WHEREAS, additionally, as part of the Settlement Agreement and as part of the City's lease
with the Marina, both parties indemnify West Side Partners for any pre-existing environmental
contamination; and
WHEREAS, the City's indemnity extends to conditions pre-existing before the marina
operator possessed the property and the Marina lessee's indemnity extends, up to a maximum of $1
million, for any contamination caused by the Marina Lessee; and
WHEREAS, to that end, the existing Marina underground storage tank farm is currently
monitored as mandated by DERM; however, there is concern that these underground storage tanks
may contaminate the SSDI-North construction site during the Murano Grande dewatering and
construction process; and
WHEREAS, to assure no migration of any leakage from this tank farm during the
construction of Murano Grande, the Developer has proposed to create a sheet pile cut-off wall to
mitigate existing contamination migration located at the marina underground storage tank farm; and
WHEREAS, the estimated costs to implement the sheet pile is approximately $343,391,
which represents the full cost to install the sheet pile cut-off wall; and
WHEREAS, at this time, City staff and the Developer are ascertaining the origins of the
contaminants to determine ultimate payment responsibility amongst the parties; and
WHEREAS, if the CityIRDA assumes 100% of the cost, it will be pursuant to the
determination that it was a pre-existing condition and mitigation measures are necessary to mitigate
the CityIRDA's liability; and
WHEREAS, alternatively, ifthe contamination is not a pre-existing condition, the Marina
Lessee and/or the Developer may be responsible for 100% or 50% ofthe mitigation costs; and
WHEREAS, this appropriation approval will be subject to the CityIRDA establishing pre-
existing conditions and payment responsibility; and
WHEREAS, the final understanding amongst the parties will be memorialized in the
Supplemental Agreement presented herein; and
WHEREAS, as part of the Settlement Agreement, the parties entered into a Grant of
Baywalk Easement which, among other things, provides for the CityIRDA to fund the costs and
expenses associated with the physical relocation of the water/sewer utilities within the SSDI-North
property; and
WHEREAS, at this time, TRG's contractor has provided only the cost estimate of relocating
electrical utility lines at an estimated cost of $963,644, for which full payment responsibility lies
with the CityIRDA; and
~
WHEREAS, approximately 790 Linear feet of deteriorated seawall from the existing Marina
Core Parcel north to Pier A must be rehabilitated per the Settlement Agreement; and
WHEREAS, the estimated costs for the rehabilitation of the existing seawall IS
approximately $1,002,642 of which the City/RDA is responsible for 100% of this cost; and
WHEREAS, together with the appropriation, this Resolution authorizes the Chairman and
Secretary to execute a Supplemental Agreement a Revocable License Agreement, an Amended and
Restated Parking Sublicense Agreement and Declaration of Restrictive Covenants in Lieu of Title;
and
WHEREAS, the Supplemental Agreement, the Revocable Parking License and an Amended
and Restated Parking Sublicense Agreement memorialize each party's respective obligations, use
requirements and restrictions and corresponding indemnities, as it relates to the ongoing
construction, staging and parking obligations; and
WHEREAS, the Supplemental Agreement sets forth the obligations and plans as it relates
to replacement parking and construction of temporary parking, modifications to the Parking License,
Parking Sublicense and Parking Covenant to include Block 51 Parcel, as it was not originally
included in the Settlement Agreement as a parcel for replacement parking; and
WHEREAS, the Revocable License is a temporary non-exclusive and revocable license for
vehicular and pedestrian ingress and egress over the Portofino properties (Goodman and Hinson) and
the Federal Triangle for purposes of access to the replacement parking for use by the Marina Lessee.
If terminated access to the Alaska Parcel will be through W ashington Avenue; and
WHEREAS, the Amended and Restated Parking Sublicense among the City, RDA and
Marina lessee, governs the construction and use of the replacement parking, staging and restoration
and corresponding indemnities.
NOW THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MAIMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
Members hereby appropriate funds in the amount of$2,381,677 from South Pointe Tax Increment
Funds, in accordance with the Settlement Agreement amongst the City of Miami Beach, the Miami
Beach Redevelopment Agency, and West Side Partners Limited with respect to (A) valet parking
obligations; (B) seawall construction costs for SSDI-North; (C) utility relocation costs; and (D) in
accordance with a surviving provision of the 1995 Development Agreement and in connection with
the indemnity provided for in the Settlement Agreement, the enviromnental mitigation costs for
SSDI-North; and further approving and authorizing the Chairman and Secretary to execute a
supplemental agreement and a revocable license agreement among Murano Two, Ltd., a Florida
Limited Partnership, Murano Three, Ltd., a Florida Limited Partnership, Sun & Fun, Inc., a Florida
Corporation, Beachwalk Development Corporation, a Florida Corporation, Azure Coast
Development, Ltd., a Florida Limited Partnership, East Coastline Development, Ltd., a Florida
Limited Partnership, and Sandpoint Financial, Ltd., a Florida Limited Partnership; the City of Miami
A
Beach, Florida, the Miami Beach Redevelopment Agency, and Miami Beach Marina Associates,
Ltd., a Florida Limited Partnership; and further authorizing the Chairman and Secretary to execute
an Amended and Restated Parking Sublicense among the City of Miami Beach, the City of Miami
Beach Redevelopment Agency and the Miami Beach Marina Associates, Ltd. all to be substantially
in the forms attached hereto.
PASSED and ADOPTED thistl8' day of Jul)l 2001.
YiPi
CHAIRMAN
ATTEST:
~fP~
SECRETARY
APPROVED A8 TO
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T:\AGENDA\20011JUN2701\RDA\MURANO.RES
EXHIBIT "A"
DESCRIPTION 1998 - COST ESTIMATE 2001- COST ESTIMATE
Parking License: Cost estimate:
SSDl-North (370 spaces) and SSDl- $10,000 per space (subject to CPl)
South (115 spaces), for a total of 485
parking spaces would be provided in
buildings constructed on SSDl-S&N
plus a laundry and bathroom facilities
on SSDl-North. Cost: $5,524,740 Cost: $5,524,740
Yacht Club parking - bathroom and Cost estimate: $1,275,000
laundry facilities. Plus $1/year and proportionate share
of CAM, insurance and taxes
Cost: $1,275,000 + CAM Cost: $1,275,000 + CAM
City/RDA obligation to provide $I,OOO/parking space for preparation Cost: $928,784, plus
replacement parking on Portofmo for 300 spaces temporary curb cut $13,643
parcels
Cost: $300,000 Cost: $942,427
City/RDA obligation to provide valet Cost estimate: $72,OOO/year
service for Marina during construction maximum, subject to CPI plus
on SSDl-North.
Cost: $72,OOO/yr estimated for 4 Cost: $72,OOO/yr estimated for 4
years = $288,000 years)= $288,000
Grant of baywalk easement - Cost estimate: $1.5 million SSDl-S (rehab & new) $78/,031
CMB/RDA responsible for seawall SSDl-N (rehab) $1,002,642
SSDl-N (new) not yet determined
Cost: $1,500,000 Cost: $1,783,673
Staging Area License Agreement. Cost estimate: $150,000 (portofmo Cost: $146,410 (does not include
and Marina to share to same extent) cost to restore)
Cost: $50,000 City share: $48,803
Utility Relocation Costs Cost estimate: Cost:
SSDl-South - $300,000 SSDl-S: $975,581
SSDl-North - $nla SSDl-N:$1,244,459 (electrical)
$963,644 (water/sewer)
Cost: $50,000 Cost: $3,183,684
Environmental Remediation Cost estimate - $500,000 SSDl-North-:
CAR-$12,790
Remediation-$27,559
Remediation-$167,334
Mitigation- $343,391"
Cost: $500,000 Cost: $551,080
Other items not included in this chart:
-Washington A venue Extension
-Pump Station Removal
-Release of access and utility easements
on Diamond C Parcel and access and
utility license and removal agreement
from Marquesa Development.
TOTAL $9,737,740 $13,597,764
T:\AGENDA\2001\ju11801\RDA\Murano Exhibit A.doc
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
http:\\ci.miami~beach.f1.us
REDEVELOPMENT AGENCY MEMORANDUM NO. 0/-110
TO:
Chairman and Members of the Board
of the Miami Beach Redevelopment Agency
Jorge M. GOnZalezCJJ1:-
Executive Director ~/l,
DATE: July 18, 2001
FROM:
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY
APPROPRIATING FUNDS IN THE AMOUNT OF $2,381,677
FROM SOUTH POINTE TAX INCREMENT FUNDS, IN
ACCORDANCE WITH THE SETTLEMENT AGREEMENT
AMONGST THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY, AND WEST SIDE PARTNERS
LIMITED WITH RESPECT TO (A) VALET PARKING
OBLIGATIONS; (B) SEAWALL CONSTRUCTION COSTS FOR
SSDI-NORTH; (C) UTILITY RELOCATION COSTS; AND (D) IN
ACCORDANCE WITH A SURVIVING PROVISION OF THE 1995
DEVELOPMENT AGREEMENT AND IN CONNECTION WITH
THE INDEMNITY PROVIDED FOR IN THE SETTLEMENT
AGREEMENT, THE ENVIRONMENTAL MITIGATION COSTS
FOR SSDI-NORTH; AND FURTHER APPROVING AND
AUTHORIZING THE CHAIRMAN AND SECRETARY TO
EXECUTE A SUPPLEMENTAL AGREEMENT AND A
REVOCABLE LICENSE AGREEMENT AMONG MURANO
TWO, LTD., A FLORIDA LIMITED PARTNERSHIP, MURANO
THREE, LTD., A FLORIDA LIMITED PARTNERSHIP, SUN &
FUN, INC., A FLORIDA CORPORATION, BEACHWALK
DEVELOPMENT CORPORATION, A FLORIDA
CORPORATION, AZURE COAST DEVELOPMENT, LTD., A
FLORIDA LIMITED PARTNERSHIP, EAST COASTLINE
DEVELOPMENT, LTD., A FLORIDA LIMITED PARTNERSHIP,
AND SANDPOINT FINANCIAL, LTD., A FLORIDA LIMITED
PARTNERSHIP; THE CITY OF MIAMI BEACH, FLORIDA, THE
MIAMI BEACH REDEVELOPMENT AGENCY, AND MIAMI
BEACH MARINA ASSOCIATES, LTD., A FLORIDA LIMITED
PARTNERSHIP; AND FURTHER AUTHORIZING THE
CHAIRMAN AND SECRETARY TO EXECUTE AN AMENDED
AND RESTATED PARKING SUBLICENSE AMONG THE CITY
OF MIAMI BEACH, THE CITY OF MIAMI BEACH
REDEVELOPMENT AGENCY AND THE MIAMI BEACH
MARINA ASSOCIATES, LTD.
AGENDA ITEM
DATE
38
7-/f...cJ1
July 18,2001
RDA- Commission Memorandum
Envi'onmental Remediation Costs for SSDI-North
Page 2
RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
In November 1995, the City of Miami Beach, the Miami Beach Redevelopment Agency and the
Porto fino Group entered into a Development Agreement which was terminated in June 1997.
In October 1998, the parties entered into a Settlement Agreement that transferred the deed to
SSDI-North (which was held in escrow) to West Side Partners, Limited and sets forth the
obligations of the parties with respect to the Development of SSDI-North and SSDI-South
parcels.
As part of the Settlement Agreement between the City of Miami Beach, the Miami Beach
Redevelopment Agency and West Side Partners Limited, it was contemplated that West Side
Partners would develop the SSDI-North parcel in two stages. The Developer, The Related
Companies (TRG), which is purchasing the property from West Side Partners, has provided
notice that it intends to develop SSDI-North parcel and anticipates commencement of
construction in September 2001.
Construction on SSDI-North will consist of two high rise towers and related amenities as
approved and reflected in the concept plan, modified by Resolution No. 2001-24349 adopted by
the City Commission on April 18, 2001. Construction sequence requirements dictate that
construction initiate along the southerly portion of SSDI-North which must be completed before
the northerly portion is developed, In connection with this construction commencement, several
pre-construction activities must occur on SSDI-North and adjacent properties to support the
proposed Murano Grande construction activities. The CityIRDA has certain financial obligations
pursuant to the Settlement Agreement for the pre-construction activities.
On June 27, 2001, the RDA Board approved and appropriated $3.2 million for several pre-
construction activities that are the CityIRDA's obligation and responsibility, pursuant to the
Settlement Agreement and to surviving provisions of the Development Agreement. These
activities included construction staging costs, curb cut costs, electrical utility relocation costs,
seawall rehabilitation and construction along SSDI-South, environmental remediation costs and
replacement parking costs. As requested on June 27, 2001, attached please find Exhibit A that
delineates the 1998 costs projections for these obligations compared with the actual construction
costs approved on June 27, 2001 and as part of this RDA Board agenda item.
Construction Scope and Estimated Costs
Pursuant to the Settlement Agreement, TRG has retained the services of various professionals
to design, permit and construct the various improvements. Detailed design efforts are
approximately 80 percent complete. In an effort to obtain budget level cost estimates for the
various improvements, TRG requested its Contractor, KVC Constructors, Inc. (KVC), to obtain
bids for certain sub-trades with specialties in certain areas of work. In many cases, a minimum
of two bids were obtained to develop the basis for the estimate. The estimates presented herein
July 18, 2001
RDA- Commission Memorandum
Environmental Remediation Costs for SSDI-North
Page 3
include the costs and certain allowances to perform the scope of work and its ancillary items. It
is noted that permitting requirements as well as existing site conditions may alter the character
of the work to be implemented, thereby increasing/decreasing the associated construction costs.
Upon completion of the detailed design efforts, the following procedure will be utilized to
develop final construction costs:
. Performance of a constructability review by a third party, (Hazen and Sawyer)
. Submittal of the plans to a minimum ofthree qualified contractors for each sub-trade
. The lowest, qualified bidder(s) (as determined by the CityIRDA and TRG) will be
retained to perform the work
Hazen and Sawyer shall serve as the City's coordinator with respect to the City's obligations as
they relate to the Settlement Agreement. Construction bids obtained by TRG will be reviewed
by Hazen and Sawyer. Progress payment requisitions prepared by the Contractor(s) will be
reviewed by Hazen and Sawyer and recommended for payments to the CityIRDA.
As stated on June 27, 2001, the majority of the costs are to be borne by the CityIRDA and others
and it is in the best interest of all entities to negotiate the lowest I most qualified bid(s) to
perform the work. The estimates presented herein are for appropriation purposes only and are
not intended to be final construction cost estimates. KVC will provide Agreements prior to their
execution for the CityIRDA's review and comment as well as provide the actual bids obtained
from each contractor(s).
The CityIRDA's obligations, in addition to the $3.2 million approved on June 27, 2001, in
connection with SSDI-North are as follows:
Total Estimated City I RDA Obligation City I RDA
Work Item Description Costs Cost
Valet Parking One hundred percent $72,000
(Areas IV A, B and C) $72,OOO/yr
Utility Relocations $963,644 One hundred percent $963,644
(Area VI B)
(stormwater drainage, sanitary
sewer forcemain, gas lines)
Amended and Restated Grant of $1,002,642 One hundred percent $1,002,642
Baywalk Easement
i.e. Seawall Restoration ISSDI-N
Area VII B
SSDI- North Environmental $343,391 * One hundred percent $343,391 *
Indenmity
(Area V)
Totals $2,381,677 $2,381,677
. ..
* The origin ofthe contamination will dIctate payment responsIbIlIty, WhICh may ultImately
reduce the CityIRDA's liability.
July 18, 2001
RDA- Commission Memorandum
Envi,onmental Remediation Costs for SSDI-No,th
Page 4
(A) Parking License
The Settlement Agreement further contemplated that during the implementation of the
environmental remediation on SSDI-North and subsequent construction, the City and its Lessee,
the Miami Beach Marina, would be granted, via a Parking License Agreement, parking spaces
on the Portofino Parcels (Alaska, Goodman, Hinson Parcels) to replace the same number of
parking spaces no longer available on SSDI-North. The Parking License was executed among
West Side Partners, the Alaska, Goodman and Hinson Parcel property owners, the City of Miami
Beach, and the RDA. The Parking License provides for the CitylRDA to have access to SSDI-
North, at no cost, in order to provide parking for the Marina until SSDI-North is developed, at
which time, substitute parking spaces will be provided on the Goodman, Hinson and Alaska
parcels. Porto fino is also locating approximately 34 spaces on Block 51, which fronts
Commerce Street. This parcel will be included in a Supplemental Agreement presented for RDA
approval in conjunction with this appropriation. To this end, and in connection with the
upcoming development ofSSDI-North, the City is obligated to build substitute parking which
will consist of the following:
Parking Spaces
Parking Areas Standard Handicap Total
Alaska Parcel 261 7 268
Block 51 - Lots 5-9 32 2 34
SSDI-North: North Lot 110 5 115
Totals 403 14 414
The estimated cost of these substitute parking facilities was appropriated and approved on June
27, 2001. Please reference Exhibit 1 Area IV A, B and C for the location of the parking areas.
As part of the Fourth Amendment to the Marina Lease, specifically Section 3.1.1, the CitylRDA
agreed to reimburse the Marina Lessee for valet parking services, to and from the Marina to the
replacement parking areas, up to the amount of $72,OOO/year, as adjusted by CPI, during the
period of construction and/or remediation.
(a) Utility Relocation
As part of the Settlement Agreement, the parties entered into a Grant of Baywalk Easement
which, among other things, provides for the City/RDA to fund the costs and expenses associated
with the physical relocation of the utilities within the SSDI-North property. On June 27, 2001,
the CitylRDA appropriated $1.2 million to relocate electrical lines, including the relocation of
the above ground electrical boxes.
July 18,2001
RDA- Commission Memorandum
Envi,onmental Remediation Costs for SSDI-North
Page 5
At this time, TRG's contractor has provided the additional cost estimate of relocating the existing
water distribution main and services, the existing sanitary sewer and service laterals and
relocation of the existing 54-inch and upgrading it to a 72-inch storm sewer interceptor at an
estimated cost of $963,644, for which full payment responsibility lies with the CityIRDA. (Refer
to Exhibit I, Area VI B)
(C) Environmental Mitigation
One of the surviving provisions ofthe 1995 agreement with Portofino addresses environmental
assessment and remediation of SSDI-North. Pursuant to Section 5.3 (f)(iii), a surviving
provision of the Development Agreement, the Miami Beach Redevelopment Agency is
responsible for payment of fifty percent (50%) of the environmental assessment and remediation
costs associated with SSDI-North.
Additionally, as part ofthe Settlement Agreement and as part of the City's lease with the Marina,
both parties indemnify West Side Partners for any pre-existing environmental contamination.
The City's indemnity extends to conditions pre-existing before the marina operator possessed
the property and the Marina lessee's indemnity extends, up to a maximum of $1 million, for any
contamination caused by the Marina Lessee. To that end, the existing Marina underground
storage tank fann is currently monitored as mandated by DERM. However, there is concem that
these underground storage tanks may contaminate the SSDI-North construction site during the
Murano Grande dewatering and construction process. To assure no migration of any leakage
from this tank fann during the construction of Murano Grande, the Developer has proposed to
create a sheet pile cut-off wall to mitigate existing contamination migration located at the marina
underground storage tank fann.
The estimated costs to implement the sheet pile is approximately $343,391. The $343,391
represents the full cost to install the sheet pile cut-off wall. At this time, City staff and the
Developer are ascertaining the origins of the contaminants to determine ultimate payment
responsibility amongst the parties. If the CityIRDA assumes 50% of the cost (with the
Developer assuming the other 50%), it will be pursuant to the determination that it was a pre-
existing condition and mitigation measures are necessary to mitigate the CityIRDA's liability.
Alternatively, if the contamination is not a pre-existing condition, the Marina Lessee may be
responsible for 100% of the mitigation costs. This appropriation approval will be subject to the
CitylRDA establishing pre-existing conditions and payment responsibility. The final
understanding amongst the parties will be memorialized in the Supplemental Agreement
presented herein. The Administration recommends, however, an appropriation of 100% of the
estimated costs in order to assure sufficient funding will be available under any contingency.
(J>) Amended and Restated Grant of Baywalk Easement
As part of the Settlement Agreement, the parties entered into a Grant ofBaywalk Easement that
grants the City a permanent and irrevocable non-exclusive easement along the baywalk. The
City is obligated, at its sole cost and expense, to restore, maintain, repair and, as required, replace
the bulkheads and seawall, in a first class condition. West Side Partners, Ltd., is obligated to
construct the Baywalk, but the City has the ongoing obligation to maintain and restore the
July 18, 2001
RDA- Commission Memo,andum
Environmental Remediation Costs for SSDI-North
Page 6
Baywalk. The City/RDA has separately entered into a Baywalk maintenance and operating
agreement with the Marina Operator as a result of the City's Fourth Amendment to the Marina
lease agreement.
Seawall Rehabilitation
On June 27,2001, funding for the rehabilitation and construction of seawall along SSDI-South
was approved. Approximately 790 Linear feet of deteriorated seawall along SSDI-North from
the existing Marina core parcel north to Pier A must be rehabilitated per the Settlement
Agreement. The recommended alternative design for the repair of the seawall comprises a
retaining wall anchored to the root of the existing steel sheetpile. The repair can be done almost
entirely from an upland location thereby reducing costs. This is a structural solution that will
bring the bulkhead into compliance with structural code requirements and will provide a service
life of approximately 2S years or more. This is consistent with the design of the
repair/rehabilitation section and provides a consistent appearance along the SSDI-North parcel
between Monty's Restaurant and the MacArthur Causeway.
The estimated costs for the rehabilitation of the existing seawall along SSDI-North is
approximately $1,002,642. Please reference Exhibit 1 Area VII B for the location of the
proposed seawall construction work limits. The City/RDA is responsible for 100% of this cost.
Other Agreements:
Together with the appropriation, this Resolution authorizes the Chairman and Secretary to
execute a Supplemental Agreement and a Revocable License Agreement among Murano Two,
Ltd., a Florida Limited Partnership ("Murano Two"), Murano Three, Ltd" a Florida Limited
Partnership ("Murano Three"; and together with Murano Two, the "Murano Entities"), Sun &
Fun, Inc., a Florida Corporation ("S&F"), Beachwalk Development Corporation, a Florida
Corporation ("Beachwalk"), Azure Coast Development, Ltd., a Florida Limited Partnership
("Azure"), East Coastline Development, Ltd., a Florida Limited Partnership ("ECD"), and
Sandpoint Financial, Ltd., a Florida Limited Partnership ("Sandpoint"; and together, S&F,
Beachwalk, Azure, ECD and Sandpoint are hereinafter referred to collectively as the "Porto fino
Entities"), the City of Miami Beach, Florida, a Florida Municipal Corporation, (The "City"), the
Miami Beach Redevelopment Agency, (the "RDA"); and Miami Beach Marina Associates, Ltd.,
a Florida Limited Partnership (The "Marina Lessee"). Additionally, an Amended and Restated
Parking Sublicense Agreement and Declaration of Restrictive Covenants in Lieu of Title are also
recommended for approval by the City Commission pursuant to a separate resolution in the case
if the Restrictive Covenant.
The Supplemental Agreement, the Revocable Parking License and an Amended and Restated
Parking Sublicense Agreement are attached hereto, and memorialize each party's respective
obligations, use requirements and restrictions and corresponding indemnities, as it relates to the
ongoing construction, staging and parking obligations. The Settlement Agreement contemplated
and provided for all the aforementioned activities but did not provide the legal document or
agreement to implement the activities and the corresponding obligations and responsibilities;
thus these three (3) Agreements provide for such legal documentation.
July 18,2001
RDA- Commission Memorandum
Envi,onmental Remediation Costs for SSDI-North
Page 7
The Supplemental Agreement sets for the obligations and plans as it relates to replacement
parking and construction of temporary parking, modifications to the Parking License, Parking
Sublicense and Parking Covenant to include Block 51 Parcel, as it was not originally included
in the Settlement Agreement as a parcel for replacement parking. As a result of the inclusion of
Block 51 Parcel, Goodman and Hinson will be released for replacement parking since all
replacement parking will be provided on the Alaska Parcel and Block 51 and the northern portion
ofSSDI-North. Goodman and Hinson will be utilized as a temporary accessway to the Alaska
parcel.
The Revocable License is a temporary non-exclusive and revocable license for vehicular and
pedestrian ingress and egress over the Portofino properties (Goodman and Hinson) and the
Federal Triangle for purposes of access to the replacement parking for use by the Marina Lessee.
Ifterminated access to the Alaska Parcel will be through Washington Avenue.
The Amended and Restated Parking Sublicense among the City, RDA and Marina lessee,
governs the construction and use of the replacement parking, staging and restoration and
corresponding indemnities.
The Declaration of Restrictive Covenants in Lieu of Unity of Title, to be approved by the Mayor
and City Commission, provides for the unity of title required to submit an application to the
Planning Board for purposes of obtaining the conditional use approval required by the Planning
Board in order to approve the proposed vehicular and pedestrian ingress and egress to Alaska
parcel for replacement parking for the Marina.
Access to the Alaska parcel parking lot will be provided by three means:
. pedestrian access via the public baywalk which will require a temporary, non-exclusive,
public walkway through the City's Federal Triangle, connecting to and adjacent to the
Alaska Parcel.
. vehicular access via a new curbcut and roadway through the Goodman and Hinson
parcels and the City's Federal Triangle. This access will lie on the western property line
of Goodman and Hinson and the eastern property line of the Federal Triangle. The
Revocable License Agreement grants said access and indemnifies the City.
. vehicular access will also be provided through the W ashington Avenue Extension on the
eastern frontage of the Alaska Parcel.
In connection with the parking lots to be constructed south of South Pointe Drive, the City Code
requires a conditional use approval by the Planning Board and a minimum level oftemporary
lot improvements and standards, i.e. paving, lighting, landscaping and drainage and does not
allow gravel lots. The Planning Board hearing is scheduled on July 31, 2001 and the Declaration
of Restrictive Covenants in Lieu of Unity of Title is submitted as part of this application process.
July 18, 2001
RDA- Commission Memorandum
Environmental Remediation Costs for SSD1-North
Page 8
In order to proceed with design and to seek construction bids in order to proceed with
remediation activities and subsequent construction, it is necessary and recommended that the
Board appropriate $2,381,677 from the South Pointe Tax Increment Funds to comply with the
City/RDA's obligations pursuant to the Settlement Agreement, and approve and authorize
execution ofthe Supplemental Agreement, Revocable Parking License, Amended and Restated
Parking Sublicense Agreement and Declaration of Restrictive Covenant in Lieu of Unity ofTitIe.
JMG/~/rar
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attachment
EXHIBIT "A"
DESCRIPTION 1998 - COST ESTIMATE 2001 - COST ESTIMATE
Parking License: Cost estimate:
SSDI-North (370 spaces) and SSDI- $10,000 per space (subject to CPI)
South (115 spaces), for a total of 485
parking spaces would be provided in
buildings constructed on SSDI-S&N
plus a laundry and bathroom facilities
on SSDI-North. Cost: $5,524,740 Cost: $5,524,740
Yacht Club parking - bathroom and Cost estimate: $1,275,000
laundry facilities. Plus $I/year and proportionate share
of CAM, insurance and taxes
Cost: $1,275,000 + CAM Cost: $1,275,000 + CAM
CitylRDA obligation to provide $I,OOO/parking space for preparation Cost: $928,784, plus
replacement parking on Portofino for 300 spaces temporary curb cut $13,643
parcels
Cost: $300,000 Cost: $942,427
CitylRDA obligation to provide valet Cost estimate: $72,OOO/year
service for Marina during construction maximum, subject to CPI plus
on SSDI-North.
Cost: $72,OOO/yr estimated for 4 Cost: $72,OOO/yr estimated for 4
years ~ $288,000 years)= $288,000
Grant of baywaik easement - Cost estimate: $1.5 million SSDI-S (rehab & new) $781,031
CMBIRDA responsible for seawall SSDI-N (rehab) $1,002,642
SSDI-N (new) not yet determined
Cost: $1,500,000 Cost: $1,783,673
Staging Area License Agreement. Cost estimate: $150,000 (Portofmo Cost: $146,410 (does not include
and Marina to share to same extent) cost to restore)
Cost: $50,000 City share: $48,803
Utility Relocation Costs Cost estimate: Cost:
SSDI-South - $300,000 SSDI-S: $975,581
SSDI-North - $n/a SSDI-N:$1,244,459 (electrical)
$963,644 (water/sewer)
Cost: $50,000 Cost: $3,183,684
Environmental Remediation Cost estimate - $500,000 SSDI-North-:
CAR-$12,790
Remediation-$27,559
Remediation-$167,334
Mitigation- $343,391'
Cost: $500,000 Cost: $551,080
Other items not included in this chart:
-Washington A venue Extension
-Pump Station Removal
-Release of access and utility easements
on Diamond C Parcel and access and
utility license and removal agreement
from Marquesa Development.
TOTAL $9,737,740 $13,597,764
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