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2009-27176 ResoRESOLUTION NO. 2009-27176 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A SEVENTH AMENDMENT TO THAT CERTAIN AMENDED AND RESTATED/CONSOLIDATED LEASE AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI BEACH JEWISH COMMUNITY CENTER, INC. (JCC), FOR A PARCEL OF LAND AND FACILITIES LOCATED AT 4221 - 4229 PINE TREE DRIVE, MIAMI BEACH, FLORIDA, AMENDING THE AGREEMENT TO ALLOW THE JCC TO APPLY TO THE DESIGN REVIEW BOARD FOR A REVIEW AND APPROVAL OF A REDESIGN PROJECT AND EXTEND THE TIME PERIOD FOR THE JCC TO OBTAIN A FINAL BUILDING PERMIT TO BE NO LATER THAN JUNE 30, 2011; FURTHER AUTHORIZING THE CITY MANAGER, IN HIS SOLE DISCRETION, TO EXTEND THE DEADLINE TO OBTAIN A FINAL BUILDING PERMIT UNDER THE LEASE, OR REFER THE REQUEST TO EXTEND THE DEADLINE TO THE CITY COMMISSION FOR APPROVAL. WHEREAS, on June 3, 1981, the City first leased to the Jewish Community Centers of South Florida, Inc. (JCCSF), City-owned properly located at 4221 - 4229 Pine Tree Drive, also known as lots 5, 6 and 7 of Flamingo Bay Subdivision, as recorded in Plat Book 6 at Page 101 of the public records of Miami-Dade County, Florida ("Property") (Resolution 81-16678); and WHEREAS, JCCFS's lease was amended and extended on three occasions, such that the lease term was extended through October 31, 2015, with two additional ten-year options, and was assigned to Miami Beach Jewish Community Center, Inc. ("JCC"), snot-for-profit corporation (Resolutions 84-17863, 85-18280, and 88-19226); and WHEREAS, on July 12, 2000, the Mayor and City Commission adopted Resolution No. 2000-23994 approving an Amended and Restated/Consolidated Lease Agreement ("Lease") with the JCC for the Property, subject to referendum, which was duly held and approved, which included provisions in Lease Paragraphs 15.4 and 15.5 that the JCC present Preliminary Plans and Specifications to the City, and make application to the City's Design Review Board ("DRB") for review and approval of same, no later than "three years from the Commencement Date" of the Lease, which was November 8, 2003; and WHEREAS, the City and JCC entered into a First Amendment to the Amended and Restated/Consolidated Lease (Resolution 2003-25363) on October 15, 2003, extending certain dates as provided for therein; and WHEREAS, the City and JCC entered into a Second Amendment to the Amended and Restated/Consolidated Lease (Resolution 2004-25720) on October 13, 2004, extending the time periods for the JCC to apply to the City's Design Review Board, submit plans for the construction of the proposed improvements to the Property, to obtain building permits and to complete construction of the proposed improvements, and amending other provisions of the Agreement as were appropriate under the circumstances; and WHEREAS, the City and JCC entered into a Third Amendment to the Amended and Restated/Consolidated Lease (Resolution 2006-26222) on June 7, 2006, extending the time periods for the JCC to submit plans for the construction of the proposed improvements to the Property; obtain a final building permit for; and such other changes as may be approved by the City Commission subject to final review and approval by the City Manager and City Attorney; and WHEREAS, the City and JCC entered into a Fourth Amendment to the Amended and Restated/Consolidated Lease (Resolution 2007-26449) on February 14, 2007, extending the time period for the JCC to obtain a final building permit for the proposed improvements; and WHEREAS, the City and JCC entered into a Fifth Amendment to the Amended and Restated/Consolidated Lease (Resolution 2007-26666) on October 17, 2007, extending the time period for the JCC to obtain a final building permit for the proposed improvements and extending the time period to commence construction; and WHEREAS, the City and JCC entered into a Sixth Amendment to the Amended and Restated/Consolidated Lease (Resolution 2009-27119) on July 15, 2009, extending the time period for the JCC to obtain a final building permit for the proposed improvements and extending the time period to commence construction; and WHEREAS, difficulties in fundraising have forced the JCC to revise its concept for development of the site, and the JCC has therefore submitted a revised concept plan for preliminary review and approval by the City, and requires a revision to the Amended and Restated/Consolidated Lease to provide sufficient time to return to the Design Review Board for design review approval with Final Building Permit to be obtained no later than June 30, 2011, additionally providing for the City Manager to have the authority, in his sole discretion, to extend the deadline, or refer the request to extend the deadline to the City Commission for approval. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission approve a Seventh Amendment to that certain Amended and Restated/Consolidated Lease Agreement by and between the City of Miami Beach and the Miami Beach Jewish Community Center, Inc. (JCC), for a parcel of land and facilities located at 4221 - 4229 Pine Tree Drive, Miami Beach, Florida, amending the Agreement to allow the JCC to apply to the Design Review Board for a review and approval of a redesign project and extend the time period for the JCC to obtain a final building permit to be no later than June 30, 2011; further authorizing the City Manager, in his sole discretion, to extend the deadline, or refer the request to extend the deadline to the City Commission for approval. PASSED and ADOPTED this 9th day of September, 2009. ATTEST: ~~~~~ Robert Parcher, CITY CLERK Matti H rrera Bower, MAYOR APPROVED AS TO FORM & LANGUAGE & EXECUT g Z ~ ~t y~ trey ~ ate JMG\HMF\APWCV\ T:WGENDA\2009\September 9\ConsentWCC7th Amendment RES.doc COMMISSION ITEM SUMMARY Condensed Title: Resolution approving a seventh amendment to the Second Amended and Restated/Consolidated Lease Agreement between the City and the Miami Beach Jewish Community Center, Inc. (JCC). Ke Intended Outcome 5u orted: To ensure well-maintained facilities. Supporting Data (Surveys, Environmental Scan, etc.): Parks and Recreation appeared as one of the most important areas affecting resident's quality of life. Of the 79% of residents and 82% of businesses rated the overall quality of the recreational programs and facilities as excellent or good and 58% of residents stated that they go to recreational facilities a couple of times a month or more. More recreational opportunities appeared as one of the chan es residents would make to make Miami Beach a better lace to live, work, and la . Issue: Should the Ma or and the Ci Commission a rove the seventh amendment to the lease? Item Summary/Recommendation: The City and the JCC are proposing a Seventh Amendment to that Second Amended and Restated/Consolidated Lease Agreement for the Demised Premises located at 4221 - 4229 Pine Tree Drive. Fundraising difficulties have forced the JCC to redesign the original concept plan and they must now return to DRB for approval. This amendment provides for an extension of the time period to obtain a final building permit for the proposed minimum of $2 million improvements perthe agreement, to be no later than June 30, 2011, and gives the City Manager the authority to amend this date based on a DRB extension. The Administration recommends that the Mayor and City Commission adopt the Resolution approving the seventh amendment to the lease agreement. Board Recommendation: Financial Information: Source of Amount Account Funds: 1 n/a 2 3 OBPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin Ana Cecilia Velasco, Asset Manager x 6727 Sign-Offs: Department Director Assista ity Manager City Manager AP HMF JMG T:WGENDA\2009\September 9\ConsentWCC7thAmendment.SUM.doc /~ ~ /~ ~ /~ (~ E~ ~ AGENDADA E G 7~ m MIAMIBEACH City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor Matti Herrera Bower and Members of the City C mission FROM: Jorge M. Gonzalez, City Manager DATE: September 9, 2009 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A SEVENTH AMENDMENT TO THAT CERTAIN AMENDED AND RESTATED/CONSOLIDATED LEASE AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI BEACH JEWISH COMMUNITY CENTER, INC. (JCC), FOR A PARCEL OF LAND AND FACILITIES LOCATED AT 4221 - 4229 PINE TREE DRIVE, MIAMI BEACH, FLORIDA, AMENDING THE AGREEMENT TO ALLOW THE JCC TO APPLY TO THE DESIGN REVIEW BOARD FOR A REVIEW AND APPROVAL OF A REDESIGN PROJECT AND EXTEND THE TIME PERIOD FOR THE JCC TO OBTAIN A FINAL BUILDING PERMIT TO BE NO LATER THAN JUNE 30, 2011; FURTHER AUTHORIZING THE CITY MANAGER, IN HIS SOLE DISCRETION, TO EXTEND THE DEADLINE TO OBTAIN A FINAL BUILDING PERMIT UNDER THE LEASE, OR REFER THE REQUEST TO EXTEND THE DEADLINE TO THE CITY COMMISSION FOR APPROVAL. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ~: Tt~:trl~~1~L`L, On June 3, 1981, the City first leased to the Jewish Community Centers of South Florida, Inc., City property at 4221 Pine Tree Drive, also known as lots 5, 6 and 7 of Flamingo Bay Subdivision, as recorded in Plat Book 6 at Page 101 of the public records of Miami-Dade County, Florida. (Resolution 81-16678). The purpose of the lease was to allow JCC to use the Premises as a recreation center. The original Lease was amended and extended on three occasions, such that the lease term extended through to October 31, 2015, with two additional ten-year options, and was assigned to Miami Beach Jewish Community Center, Inc. (JCC), snot-for-profit corporation (Resolutions 84-17863, 85-18280, and 88-19226). On July 12, 2000, the Mayor and City Commission adopted Resolution No. 2000-23994 approving an Amended and Restated/Consolidated Lease Agreement, subject to referendum, which incorporated the following: 1. Term was extended for 99 years, to 2099. 2. Permitted uses would include recreational, cultural, educational, social service and minor and incidental religious uses. Commission Memorandum -lCCSeventh Amendment September 9, 2009 Page 2 of 3 3. Provided for payment of fair market value and appraisal methodology for the area to be used for religious services and use fees for expanded religious uses limited to a maximum of 10 holidays per year. 4. Set forth construction parameters, specifically addressing review requirements (including Design Review Board review and approval), construction commencement and completion deadlines, and required a minimum initial investment of $2 million in improvements for which a building permit must be issued within five (5) years from the commencement of the Amended and Restated/Consolidated Lease, subject to reasonable extensions. 5. Construction which was previously restricted to two (2) lots would be permitted on all three (3) lots, in accordance with the concept plan. 6. In the event the required referendum failed, the Lease would revert to the previously existing lease term. 7. JCC agreed to indemnify, defend and hold the City harmless in the event of challenges to the Lease and referendum. 8. By separate agreement, the JCC agreed to hold harmless, indemnify and defend the City from challenges related to the Lease and referendum, from the time of the adoption of the subject resolutions, and reimburse the City for all costs associated with the referendum. The referendum appeared on the November 7, 2000 ballot in a Special Election under Miami- Dade County Charter §6.02, and was approved by a majority of voters residing in voting precincts located within one mile of the property. On October 15, 2003, the Mayor and City Commission adopted Resolution No. 2003-25363, extending the previously existing deadline to apply to the DRB and submit plans for the design of the proposed improvements to the property to the DRB, from November 8, 2003 to November 8, 2004, in order to allow the JCC sufficient time to secure the necessary financial backing to ensure that the proffered plan may be fully developed. The City and JCC entered into a Second Amendment to the Amended and Restated/ Consolidated Lease (Resolution 2004-25720) on October 13, 2004, extending the time periods for the JCC to apply to the DRB to May 5, 2005; submit plans for the construction of the proposed improvements to the Property to within twelve months of DRB approval to be extended by third parry appeals only; to obtain building permits to six years from commencement date or November 8, 2006; and to complete construction of the proposed improvements to November 8, 2008; as well as amending other provisions of the Agreement as were appropriate. The City and the JCC entered into a Third Amendment to the Amended and Restated/Consolidated Lease (Resolution 2004-25720) on June 7, 2006, extending the time periods for the JCC to secure Design Review Board approval for its new design. Changes to the intemal layout and program of the proposed buildings delayed the completion of the construction drawings. However, the redesign of the intemal layout of the buildings made it impossible for the JCC to comply with the Lease's deadlines related to the submittal of construction plans to the Ciry Manager, and the obtaining of a final building permit. While the JCC had secured Design Review Board approval for its new design, submitted construction plans with the redesign of the internal layout of the buildings to the City Manager and a building permit application had been made to the City, the JCC had not secured approval or an Environmental Resource Permit from the Miami-Dade County Department of Environmental Resources Management, which delayed the JCC's permitting efforts. The JCC proposed a modification to Paragraph 15.8 of the Second Amended and Restated/ Consolidated Lease Agreement extending the deadline to obtain a full building permit. The City and the JCC entered into a Fourth Amendment to the Amended and Commission Memorandum -JCC Seventh Amendment September 9, 2009 Page 3 of 3 Restated/Consolidated Lease (Resolution 2007-26449) on February 14, 2007. Although the JCC had secured Design Review Board approval for its proposed improvements, that approval was scheduled to expire in December 2007. At that time, the JCC had not secured approval or an Environmental Resource Permit from the Miami-Dade County Department of Environmental Resources Management, which delayed the JCC's permitting efforts. The JCC proposed an additional modification to Paragraph 15.8 of the Second Amended and Restated/Consolidated Lease Agreement, extending the deadline to obtain a full building permit to be concurrent with the DRB Order (June 4, 2009), or June 21, 2009, whichever occurred earlier. This amendment was approved on October 17, 2007 (Resolution 2007-26666). At its February 3, 2009 meeting, the Design Review Board issued an Orderwhich provided for a one-year extension of time to obtain a full building permit from the original DRB order expiration date of June 4, 2009, until June 4, 2010. This amendment served to preserve the development rights of the JCC and tied the requirement to obtain a full building permit to be concurrent with the DRB Order, meaning that Lessee's obligation to obtain a building permit would run with the time period allowed for the validity of the DRB Order, currently June 4, 2010, but which may have been extended by submitting one new application to and obtaining one new approval from the DRB (including extensions). Due to economic circumstances, the JCC expressed a desire to scale back the design and magnitude of the project, while maintaining the contractual requirement to expend a minimum of two million dollars for the improvement. However, no formal request was made to the City at that time. PROPOSED SEVENTH AMENDMENT TO THE AMENDED AND RESTATED/ CONSOLIDATED LEASE: Difficulties in fundraising have forced the JCC to revise its concept for development of the site, and the JCC has therefore submitted a revised concept plan for preliminary review and approval by the City. This action requires a revision to this Lease Agreement to accommodate sufficient time to return to the Design Review Board for design review approval, and additional time for preparation of construction drawings and permitting. Pursuant to the proposed amended requirements of the Consolidated Lease, the JCC will apply to the Design Review Board for review and approval of the redesigned project prior to December 31, 2009. JCC must obtain a building permit shall be issued within 18 months of the Design Review approval, but no later than June 30, 2011. The City Manager may, at his sole discretion, amend this date should the Design Review Board grant an extension to the development order. CONCLUSION The City Administration recommends that the Mayor and City Commission approve the proposed Seventh Amendment to the Amended and Restated/Consolidated Lease Agreement by and between the City of Miami Beach and the Miami Beach Jewish Community Center, Inc. (JCC), for a parcel of land and facilities located at 4221 - 4229 Pine Tree Drive, Miami Beach, Florida, amending the Agreement to provide sufficient time for Design Review Board approval of the redesign, and additional time for preparation of the construction drawings and permitti J /H /AP/ACV Attachment (1) T:\AGENDA\2009Wu1y 15\Consent\JCC6thAmendment.MEM.doc