399-2001 Reso
RESOLUTION
399-2001
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY,
APPROPRIATING $71,668.31 FROM THE FY 00101 SOUTH
POINTE TAX INCREMENT FUND TO PAY AD VALOREM
TAXES DUE TO THE MIAMI-DADE COUNTY TAX
ASSESSORS OFFICE FOR TAX YEARS 1994, 1995, AND
1996, FOR A PORTION OF THE CITY-OWNED PROPERTY
WITHIN SOUTH POINTE PARK, LOCATED AT 1
WASHINGTON AVENUE, AND LEASED TO ONE
WASHINGTON AVENUE CORP. FOR THE SMITH &
WOLLENSKY RESTAURANT
WHEREAS, pursuant to Resolution 85-18223, the City entered into a Lease
Agreement with Specialty Restaurants Corporation, dated November 7, 1985, for the
premises situated at South Pointe Park, 1 Washington Avenue, Miami Beach, Florida, for
the operation and management of a restaurant; and
WHEREAS, on September 2, 1993, the Mayor and City Commission approved
Resolution 93-20899, approving an assignment of the Lease Agreement from Specialty
Restaurants Corporation, as assignor, to One Washington Avenue Corporation, as
assignee; and
WHEREAS, on July 26, 1996, One Washington Avenue Corporation filed for
bankruptcy and subsequently reorganized; and
WHEREAS, on April 16, 1997, the Mayor and City Commission adopted Resolution
No. 97-22359, approving in substantial form, an addendum to the Lease Agreement and
allowing New York Restaurant Group, LLC to acquire the assets and interests in One
Washington Avenue Corporation; and
WHEREAS, One Washington Avenue Corporation failed to pay the 1994, 1995,
and 1996 ad valorem taxes on the fee interest in the real property (Folio No, 024210000
0043) as required in accordance with the Lease Agreement; and
WHEREAS, as set forth in the Commission Memorandum attached hereto, the
Office of he City Attorney has opined that the aforementioned taxes were not discharged
during the bankruptcy proceeding of One Washington Avenue Corporation, and the
CitylRDA is liable for said taxes.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, authorizing the
appropriation of $71 ,668.31 from the FY 00/01 South Pointe Tax Increment Fund to pay
ad valorem taxes due to the Miami-Dade County Tax Assessors Office for tax years 1994,
1995, and 1996, for a portion of the City-owned property within South Pointe Park, located
at 1 Washington Avenue, and leased to One Washington Avenue Corp. for the Smith &
Wollensky restaurant.
PASSED AND ADOPTED THIS 17th day of
October
,2001.
Attest:
~Yf~
Secretary
JMG/CMC/JD/rlr
T:IAGENDA \2001 IOCT170 llRDA I S& WT AX.RES.DOC
APPROVEDM1O
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CITY OF MIAMI BEACH
TO:
Christina M. Cuervo
Assistant City Manager
Lawrence A. LevvJh~
First Assistant Ci~)(tto;n'ey
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FROM:
DATE:
September 19, 2001
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RE:
Smith &Wollensky 1994, 1995, and 1996 Ad Valorem Taxes
Under Folio No. 02 421 000 00043
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When the bankruptcy of One Washington A venue Corp. took place, the City of Miami Beach
appeared in the bankruptcy and was awarded $80,428,91 consisting of resort taxes in the sum of
$16,645.71; occupational taxes in the sum of $6,304; resort tax note default interest in the amount
of$129.85 and for the face value of the resort tax note in the amount of$8,408.91; water and sewer
charges in the amount of $4,898.48 and pre-petition rent in the amount of $53,712.80 less a
reduction of $9,670.84 representing parking reimbursements.
The claim for ad valorem taxes for the years 1994-1996 was either not known to the City at
the time or was for some other reason not included in the City's claim. I have not been able to obtain
copies of the original tax bills for the years 1994-1996, however, I have been told by Joel Goldman
of Greenberg, Traurig that the bills were addressed to the City of Miami Beach but were mailed to
the One Washington A venue address.
Although the Miami-Dade County Tax Collector filed a proof of claim in the bankruptcy case
with regard to the ad valorem taxes on the leasehold interest of One Washington Avenue
Corp.(under Folio No. 02421 000 00042) for the tax years 1994-1996, the City apparently was not
put on notice of the delinquency with regard to the taxes on the fee interest in the real property (i.e.,
under Folio No. 02 421 00000043), and did not assert its rights to have such taxes paid or to be paid
the amount of such taxes (so that it could pay them) for those years. On May 30, 1997, the
Bankruptcy Court entered an Order Confirming the Debtor's Amended Joint Plan (the "Confirmation
Order"), which, among other things, provided for assumption of (i) the lease between the City of
Miami Beach and One Washington A venue Corp., as amended pursuant to the Addendum to Lease
dated June 1, 1997 and (ii) the sublease by and between South Pointe Hospitality, Inc., as sublessee
and One Washington A venue Corp., as sublessor (see paragraphs 5 and 6 of the Confirmation Order
at page 12).
On June 16, 1997, the Bankruptcy Court issued an Order Granting Motion to Approve
Stipulation and Compromise which states that it resolves all issues with re~pect to claims of the City
of Miami Beach. The City Commission approved the Assumption of Lease by Resolution No. 97-
22359, adopted April 16, 1997, The Assumption of Lease was free and clear of all liens, charges,
and encumbrances, Therefore, the City is foreclosed from asserting a claim for the taxes at this time.
LAL/bfg
cc: Murray H. Dubbin
Joe Damien
Robert Reboso
P,\A TI'O\LEVL\MEMOS\SMITlIT AX. WPD
MIAMI BEACH REDEVELOPMENT AGENCY
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.f1.us
REDEVELOPMENT AGENCY MEMORANDUM
To:
From:
Mayor Neisen O. Kasdin and
Members of the City Commission
Jorge M. Gonzalez ,~
City Manager {t u
Date: October 17, 2001
Subject:
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, APPROPRIATING $71,668.31
FROM THE FY 00/01 SOUTH POINTE TAX INCREMENT FUND TO PAY
AD VALOREM TAXES DUE TO THE MIAMI-DADE COUNTY TAX
ASSESSORS OFFICE FOR TAX YEARS 1994, 1995, AND 1996, FOR A
PORTION OF THE CITY-OWNED PROPERTY WITHIN SOUTH POINTE
PARK, LOCATED AT 1 WASHINGTON AVENUE, AND LEASED TO ONE
WASHINGTON AVENUE CORP. FOR THE SMITH & WOLLENSKY
RESTAURANT
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution
BACKGROUND
Pursuant to Resolution 85-18223, the City entered into a Lease Agreement with Specialty
Restaurants Corporation (Lessee), dated November 7, 1985, for the premises situated at
South Pointe Park, 1 Washington Avenue, Miami Beach, Florida (the Premises), for the
operation and management of a restaurant. Said Lease Agreement provides that the
"Lessee shall pay all taxes.. ..lawfully levied or assessed against the Premises and
improvements.. .including. ..ad valorem.. .taxes," On September 2, 1993, the Mayor and
City Commission adopted Resolution 93-20899, approving an assignment of the Lease
Agreement from Specialty Restaurants Corporation, as assignor, to One Washington
Avenue Corporation (the new Lessee), as assignee.
On July 26, 1996, One Washington Avenue Corporation filed for bankruptcy and
subsequently reorganized. On April 16, 1997, the Mayor and City Commission adopted
Resolution No, 97-22359, approving in substantial form, an addendum to the Lease
Agreement and allowing New York Restaurant Group, LLC to acquire the assets and
interests in One Washington Avenue Corporation, One Washington Avenue Corporation
failed to pay the 1994, 1995, and 1996 ad valorem taxes on the fee interest in the real
property (Folio No. 02 4210 000 0043) as required in accordance with the Lease
Agreement.
AGENDA ITEM
DATE
.'1C.
/0-( 7-<J/
In accordance with the attached memorandum dated September 19, 2001, the Office of
the City Attorney has opined that the aforementioned ad valorem taxes were not
discharged during the bankruptcy proceeding of One Washington Avenue Corporation, and
as such, the City of Miami Beach/Miami Beach Redevelopment Agency are liable for said
taxes.
While One Washington Avenue Corporation has paid all taxes assessed as set forth in
their Lease Agreement, since 1997, the Administration recommends that the Chairman
and Members of the Miami Beach Redevelopment Agency, authorize the appropriation
of $71 ,668,31 from the remaining FY 00/01 South Pointe Tax Increment Fund to pay
the ad valorem taxes due to the Miami-Dade County Tax Assessors Office for tax years
1994, 1995, and 1996, for a portion of the City-owned property within South Pointe
Park, located at 1 Washington Avenue, and leased to One Washington Avenue Corp.
for the Smith & Wollensky restaurant
JMG:ctc:JD:rlr
Attachment
T:\AGENDA\2001\OCT1701\RDA\S&WT AX.MEM.doc