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HomeMy WebLinkAbout98-22922 RESO RESOLUTION NO. 98-22922 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING (1) RELEASE AND CONSENT, (2) TERMINATION AGREEMENT, (3) PARKING LICENSE, (4) IMPROVEMENTS LICENSE, (5) WAIVER OF RIPARIAN RIGHTS, (6) GRANT OF BAYWALK EASEMENT, (7) SA TISF ACTION OF MORTGAGE AND JUDGMENTS, (8) GRANT OF EASEMENTS (150 FOOT EASEMENT AREA), (9) RELEASE OF ACCESS AND UTILITY EASEMFNTS, (10) ACCESS AND UTILITY LICENSE AND REMOVAL AGREEMENT, (11) RELEASE OF EASEMENT, (12) GRANT OF EASEMENT FOR SSDI SOUTH DROP-OFF PARKING AND ACCESS EASEMENT AGREEMENT, (13) STAGING AREA LICENSE; (14) PUMP STATION REMOVAL AGREEMENT, (15) LEASE AGREEMENT (YACHT CLUB GARAGE), (16) LEASE AGREEMENT (701-725 5TH STREET), AND (17) WASHINGTON AVENUE EXTENSION EASEMENT DEDICATION AGREEMENT; APPROVING THE FORM OF AN AGREEMENT FOR THE PURCHASE AND SALE OF THE ALASKA PARCEL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, West Side Partners, Ltd. has heretofore asserted claims against the City of Miami Beach ("City") and the Miami Beach Redevelopment Agency ("RDA") in an Emergency Motion styled, West Side Partners. Ltd.. a Florida Limited Partnership. Plaintiffvs. City of Miami Beach. Florida. a Florida municipal cor:poration and the Miami Beach Redevelopment Agency. a Florida municipal agency organized existing pursuant to the Community Development Act of 1969. Defendants, Case No. 82-24526-CA 30 in the Circuit Court of the EleVt"nth Judicial Circuit in and for Dade County, Florida (the "Emergency Motion"); and WHEREAS, the Mayor and City Commission have heretofore approved a settlement agreement (the "1998 Settlement Agreement") with respect to the Emergency Motion, pursuant to Resolution No. 98-22718, adopted on April 15, 1998, as amended; and WHEREAS, the aforesaid Settlement Agreement provides, among other things, for certain easements, licenses, agreements, leases, consents and waivers to be entered into in order to implement its provisions. NOW, THEREFORE, BE IT DUL Y RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: F:\A1TO\LEVL\RESOAORDISIDEA(jR '.RES Sel'temherI4.19911(7:42f1m) Section 1. The following documents are approved, and the Mayor, Manager, City Clerk, and other officers and officials of the City are hereby authorized and directed to execute each of said documents substantially in the form attached as an Exhibit hereto, with such changes, insertions, additions and deletions as may be approved by the Manager after consultation with the City Attorney, the execution thereof being conclusive evidence of such approval: (1) Release and Consent, by and among the City, the Miami Beach Redevelopment Agency (the "Agency"), and West Side Partners, Ltd., ("West Side"), attached hereto as Exhibit 1. (2) Termination Agreement, by and among the City, the Agency, and West Side, attached hereto as Exhibit 2. (3) Parking License, by and among West Side, certain entities related to West Side, the City and the Agency, attached hereto as Exhibit 3. (4) Improvements License, by and among West Side, the City and the Agency, attached hereto as Exhibit 4. (5) Waiver of Riparian Rights, by and among West Side, the City and the Agency, attached hereto as Exhibit 5. (6) Grant of Baywalk Easement, from West Side, as Grantor, to the City, as Grantee, attached hereto as Exhibit 6. (7) Satisfaction of Mortgage and Judgments, from West Side to the City, attached hereto as Exhibit 7. (8) Grant of Easements (150 Foot Easement), from West Side, as Grantor, to the City, as Grantee, attached hereto as Exhibit 8. (9) Release of Access and Utility Easements, by the City, attached hereto as Exhibit 9. (10) Access and Utility License and Removal Agreement from Marquesa Development, Ltd., as Grantor, to the City, as Grantee, attached hereto as Exhibit 10. (11) Release of Easement, from the City, attached hereto as Exhibit 11. :~\:=~~:~:~~~~~~\SIDEAORI,RES 2 (12) Grant of Easement for SSDI South Drop-Off Parking and Access Easement Agreement, from West Side, as Grantor, to the City, as Grantee, attached hereto as Exhibit 12. (13) Staging Area License Agreement, by and between the City and West Side, attached hereto as Exhibit 13. (14) Pump Station Removal Agreement, by and among the City and West Side, attached hereto as Exhibit 14. (15) Lease Agreement, by and among, Yacht Club at Portofino, Ltd., as Florida limited partnership, the City and the Agency, attached hereto as Exhibit 15. (16) Lease Agreement, by and between 711 Deco, Inc. and the City, attached hereto as Exhibit 16. (17) Washington Avenue Extension Easement Dedication Agreement, by and among Azure Coast Development, Ltd., Sun & Fun, Inc., Beachwalk Development Corporation, East Coastline Development, Ltd., and the City, attached hereto as Exhibit 17. Section 2. The form of the Agreement for Purchase and Sale of the Alaska Parcel is hereby approved substantially in the form attached hereto as Exhibit 18, provided, however, that said Agreement for Purchase and Sale shall not be executed unless and until the Mayor and City Commission or the Chairman and Members of the Agency adopt a resolution authorizing the purchase of the Alaska Parcel in accordance with the option granted in the 1998 Settlement Agreement. Section 3. The Mayor, City Clerk, Manager, Finance Director and City Attorney and all other City officers and officials are hereby authorized and directed to do all things and execute all documents necessary to carry out the intent of this Resolution. Section 4. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED this 23rd day of September ,1998. ATTEST: 141 JZ5kcr PCU~ CITY CLERK MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXeCUTION f:\ATIOIU;VVRESO&OkD\SIDEAGR I ,RES SeplemberI4,1998(7'42pm) 3 ~~ .... '~""mey 9j;)/~~ Oc* CITY OF MIAMI BEACH CITY ATTORNEY'S OFFICE TO: Mayor Neisen Kasdin Vice Mayor Nancy Liebman Commissioner Simon Cruz Commissioner David Dermer Commissioner Susan Gottlieb Commissioner Martin Shapiro Commissioner Jose Smith , FROM: Murray H. Dubbin A OlaV City Attorney M W~ DATE: September 15, 1998 SUBJECT: Portofino Settlement Agreement Delivered herewith is a package containing the final drafts of the Exhibits attached to and made a part of the 1998 Porto fino Settlement Agreement. These Exhibits also constitute the closing documents, all of which will be executed upon the Commission's approval ofthe 1998 Concept Plan and, in certain cases, the end of the appeal periods for the DR! and amendments to the Comprehensive Plan of the City. Accompanying the package is a matrix itemizing each document by number, title and explanation. As you will note, there are 18 Exhibits in all affecting the City, 10 of which affect the RDA. This package is for your review. If you have any questions or comments, please communicate with me or Lawrence Levy. MHD:lm Encl. 1998 PORTOFINO SETTLEMENT AGREEMENT Explanation of Agreements Implementing Settlement EXHIBIT NO. CITY RDA EXHIBIT EXPLANATION 1 1 Release and Consent, by and among the Releases and terminates any rights that City, the Miami Beach Redevelopment West Side may have had to either compel Agency (the "Agency"), and West Side construction of a dry stack boat storage Partners, Ltd., ("West Side"). facility on the Core Parcel or prevent construction of a garage or other structure on the Core Parcel. 2 2 Termination Agreement, by and among Terminates the obligation of the City to the City, the Agency, and West Side. pay rent to West Side under the 18 month lease on ssm North as provided in S5.3(t) of the 1995 Portofino Settlement Agreement. 3 3 Parking License, by and among West Provides for City/RDA to have access to Side, certain entities related to West Side, SSDI North, at no cost, in order to the City and the Agency. provide parking for the Marina until West Side is ready to build on a portion of that parcel. Also provides for substitute space to be available on Goodman, Hinson and Alaska parcels when spaces are displaced because of construction on a portion of ssm North. 4 4 Improvements License, by and among Allows Marina Lessee to keep its tenants West Side, the City and the Agency. in the buildings on ssm North, at no cost to the City/RDA, until construction is commenced on that site. 5 5 Waiver of Riparian Rights, by and among West Side waives its riparian rights in West Side, the City and the Agency. order to protect City/RDA's interest in the submerged land lease with the State of Florida. West Side specifically agrees to take actions necessary to protect City/RDA's interest when the submerged land lease is renewed. 6 N/A Grant of Baywalk Easement, from West Grants the City a 25 foot easement on the Side, as Grantor, to the City, as Grantee. east side of the west plat line of SSDI North for the Baywalk in perpetuity. F:\ATIOIU::VUPORTOFlNlSIDEAOMT.SlJM Scl'tllmhcrl~, 19911 (I0:03am) EXHIBIT NO. CITY 7 9 10 11 RDA 6 8 N/A N/A N/A F:\ATIUlLEVLlPORTOFIN\SIDEAOMT.8UM S~(IlemherlS, 1998 (I0:0lam) EXHIBIT Satisfaction of Mortgage and Judgments, from West Side to the City. 7 Grant of Easements (150 Foot Easement), from West Side, as Grantor, to the City, as Grantee. Release of Access and Utility Easements, by the City. Access and Utility License and Removal Agreement from Marquesa Development, Ltd., as Grantor, to the City, as Grantee. Release of Easement from the City. 2 EXPLANATION Evidences satisfaction of judgments against the City in favor of SSDI, which was West Side's predecessor in interest. The judgment amount was stated in the 1995 Portofino Settlement Agreement to be $11,375,000. Grants the City a 150 foot easement, of which the Marina will have exclusive use of the south 100 feet, while the north 50 feet will be a shared driveway. The easement lies north of the Core Parcel and south of the buildings to be constructed on ssm North. It will provide access to the Baywalk and the Core Building for Marina users and pedestrians, as well as vehicular access to the Marina parking and Monty's valet area. Releases a utility easement in favor of the City across the "Diamond C Parcel." Allows City to leave utility lines across the "Diamond C Parcel" until the City constructs the W ashington Avenue Extension at which time the City will move the utility lines to the Extension. City must construct the Washington A venue Extension within one year after "Final Approvals" defined in the 1998 Settlement Agreement are secured (i.e., not later than 12/31/99) Releases an easement on SSDI South, which was granted under the 1986 Development Agreement, and has been superseded by the easements granted under the 1998 Settlement Agreement. EXHIBIT NO. CITY RDA EXHIBIT EXPLANATION 12 8 Grant of Easement for ssm South Drop- Grants two easements on ssm South. Off Parking and Access Easement One will be immediately south of the Agreement, from West Side, as Grantor, Yacht Club and will provide vehicular to the City, as Grantee access for the Marina drop-off area and pedestrian access to the Baywalk. The other will be at the south end of the parcel and will be for pedestrian and emergency vehicle access to the Baywalk. 13 N/A Staging Area License Agreement, by and Provides for use of sidewalk and the between the City and West Side westernmost lane of Alton Road to be used as a Staging Area for construction on SSDI North. This will allow some parking for Marina to remain on SSDI North (and thereby, lessen the disruption to the Marina Lessee's parking), while part of the parcel is under construction and reduce City/RDA costs to provide alternate parking for Marina during construction. 14 N/A Pump Station Removal Agreement, by There is an existing pump station on the and among the City and West Side. ssm North parcel that must be removed within one year of the securing of the "Final Approvals." 15 9 Lease Agreement, by and among, Yacht Lease of 115 parking spaces in the Yacht Club at Portofino, Ltd., as Florida limited Club by RDA for Marina parking. partnership, the City and the Agency. 16 N/A Lease Agreement, by and between 711 Lease by City of 3,000 square feet on 5th Deco, Inc. and the City. Street and Meridian. 17 N/A Washington Avenue Extension Easement Grants an easement that gives the City a Dedication Agreement by and among 100 ft. wide right-of-way across the Azure Coast Development, Ltd., Sun & Goodman Terrace, Hinson and Alaska Fun, Inc., Beachwalk Development Parcels. City agrees to move certain Corporation, East Coastline Development, utilities from the "Diamond C Parcel" Ltd., and the City. adjacent to the new right-of-way. F:\A1TOILEVLlPORTOFIN\SIDEAOMT.S1JM Septcmb"rl~, 1998 (I0:0lam) 3 EXHIBIT NO. CITY RDA EXHIBIT EXPLANATION 18 10 Form of the Agreement for Sale and Agreement for Sale Purchase shall not be Purchase of the Alaska Parcel. executed unless and until the Mayor and City Commission or the Chairman and Members of the Agency adopt a resolution authorizing the purchase of the Alaska Parcel within the 90 days of the execution of the 1998 Settlement Agreement, in accordance with the option granted therein. F:\AffiJ\LEVLlPORTOFIN\SIDEAGMT.SUM SCl'lllmbcrt5,1998(IO:03U'1l) 4 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us TO: FROM: SUBJECT: COMMISSION MEMORANDUM NO. W~ 9 ~ (0 Mayor Neisen O. Kasdin and Members of the City Co mission DATE: September 23, 1998 Sergio Rodriguez City Manager A RESOL ION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING (1) RELEASE AND CONSENT, (2) TERMINATION AGREEMENT, (3) PARKING LICENSE, (4) IMPROVEMENTS LICENSE, (5) WAIVER OF RIPARIAN RIGHTS, (6) GRANT OF BA YW ALK EASEMENT, (7) SATISFACTION OF MORTGAGE AND JUDGMENTS, (8) GRANT OF EASEMENTS (150 FOOT EASEMENT AREA), (9) RELEASE OF ACCESS AND UTILITY EASEMENTS, (10) ACCESS AND UTILITY LICENSE AND REMOVAL AGREEMENT, (11) RELEASE OF EASEMENT, (12) GRANT OF EASEMENT FOR SSDI SOUTH DROP-OFF PARKING AND ACCESS EASEMENT AGREEMENT, (13) STAGING AREA LICENSE; (14) PUMP STATION REMOVAL AGREEMENT, (15) LEASE AGREEMENT (YACHT CLUB GARAGE), (16) LEASE AGREEMENT (701-725 5TH STREET); AND (17) WASHINGTON AVENUE EXTENSION EASEMENT AGREEMENT; AND (18) APPROVING THE FORM OF AN AGREEMENT FOR THE PURCHASE AND SALE OF THE ALASKA PARCEL; AND PROVIDING AN EFFECTIVE DATE. RECOMMENDATION Adopt the Resolution. BACKGROUND Introduction At the two meetings of the City CommissionlRDA held on April 1, 1998 and April 15, 1998 a series of approvals were granted that addressed the" 1998 Settlement Agreement" and various development requirements relating to the properties known as SSDI-North, the Core Parcel and SSDI-South which addressed Comprehensive Plan Amendments, South Shore Revitalization Strategy/Redevelopment Plan Amendments, City Code Section 2-71.1 Amendment, and DRI Development orders. Settlement Agreement On April 15, 1998, the City CommissionlRDA approved the" 1998 Settlement Agreement" (1998 SA) with West Side Partners (the Porto fino entities) pursuant to Resolution No. 293-98 (RDA) and AGENDA ITEM K /62 DATE ~ -'2.3 -9 g 98-22718 (City). The Agreement requires that the City/RDA enter into certain easements, licenses, agreement, leases, consents and waivers in order to implement its provisions. These documents before the City/RDA today, implement the provisions of the 1998 SA. The Settlement Agreement recites in the first section, the history of the various agreements and obligations which sets the stage for the complicated Agreement between West Side Partners, the Miami Beach Marina operators, the City of Miami Beach and the Redevelopment Agency (RDA). The primary purpose of the global Settlement Agreement was to avoid costly and damaging litigation which would have a negative financial impact for the City of Miami Beach and its RDA. The Agreement provides for, and reaffirms, the developers' right to achieve a level of development to which they already are entitled on the SSDI North and South parcels. The Agreement facilitates the fulfillment by the City/RDA of its obligation under the Agreement with the Miami Beach Marina to provide for parking for the Marina and assures the visibility and viability of the Marina by providing for a 150 foot restricted easement on SSDI North. Finally, and most importantly, the City and RDA gain substantial benefits in exchange for agreeing to reaffirm the developers' rights. The financial implications to the City/RDA are significant. The most significant benefit involves the parking obligations for the Marina. Under this settlement, the RDA will not have to construct an $8.4 million garage for the Marina to be paid for with tax increment bonds, because the parking would be developed under the buildings that the Porto fino entities would build. The RDA would pay for this parking over time as the buildings are finished at a reduced cost to the City. In the meantime, the RDA would have use of SSDI North rent-free until the buildings are constructed. Development and Approvals As part of the approval ofthe 1998 SA, on April 15, 1998, the City CommissionlRDA approved the following Ordinances and Resolutions: la. An Ordinance Approving Proposed Amendments to the Future Land Use Map (FLUM) of the City of Miami Beach consistent with the terms of the SSDI Development Agreement (SSDI DA) correcting a scrivener's error made in 1989 with regard to a future land use designation. lb. Certain Text Changes to the Year 2000 Comprehensive Plan for the City of Miami Beach (City Commission only) to include a mix of housing types and commercial uses. 2. An Ordinance/Resolution Approving Amendment to the South Shore Revitalization Strategy (Redevelopment Plan) to be consistent with the adopted and approved redevelopment plan for the area. (Note: The life of the district was not extended.) 3. An Ordinance Amending Section 2-72.1 of the Code of the City of Miami Beach, to include a reference to the Ordinance Amending the South Shore Revitalization Strategy Plan properly reflecting the most recent amendments to the South Shore Revitalization Strategy.. 4. An OrdinanceIResolution Approving a Development Order under the provisions of Section 380.06, Florida Statues, for the Porto fino Alternative Development of Regional Impact (DRI); and 5. An Ordinance/Resolution Approving an Amended Development Order under the Provisions of Section 380.06, Florida Statutes, for the Miami Beach Marina Alternative DRI. ANALYSIS The existing Marina, Core Parcel, SSDI North and SSDI South parcels were included in the original Development Order for the Miami Beach Marina DR!. Since Portofino now owns SSDI-North and South, these parcels were bifurcated from the existing DRI' attributing 65% of the trips to Portofino and 35% of the trips to the City/RDA. The following closing documents implement the terms of the 1998 SA; all of which will be executed upon the City/RDA approval of the 1998 Concept Plan; and in certain cases, upon the end of the appeal periods for the DRI and amendments to the Comprehensive Plan of the City. Exh. (1) Exh. (2) Exh. (3) Exh. (4) Release and Consent, by and among the City, the RDA, and West Side Partners, Ltd., ("West Side"). (CITY/RDA.) This document releases and terminates any rights that West Side may had to either compel the construction of a dry stack boat storage facility on the Core Parcel or prevent construction of a garage or other structure on the Core Parcel. Termination Agreement, by and among the City, the RDA, and West Side. (CITY/RDA) This document terminates the obligation of the City to pay rent to West Side under the 18-month lease on SSDI North as provided in Section 5.3(f) of the 1995 Porto fino Settlement Agreement. Parking License, by and among West Side, certain entities related to West Side, the City and the RDA. (CITY/RDA) This document provides for the City/RDA to have access to the SSDI North, at no cost, in order to provide parking for the Marina until West Side is ready to build on a portion of substitute space to be available on Goodman, Hinson and Alaska parcels when spaces are displaced because of construction on a portion of SSDI North. Improvement License, by and among West Side, the City and the Agency. (CITY/RDA) This document allows the Marina Lessee to keep its tenants in the buildings on SSDI North, at no cost to the City/RDA, until construction is commenced on that site. Exh. (S) Exh. (6) Exh. (7) Exh. (8) Exh. (9) Exh. (10) Exh. (11) Waiver of Riparian Rights, by and among West Side, the City and the Agency. (CITY /RDA) This document provides that West Side waives its riparian rights in order to protect the CitylRDA's interest in the submerged land lease with the State of Florida. West Side specifically agrees to take actions necessary to protect the City/RDA's interest when the submerged land lease is renewed. Grant of Baywalk Easement. ( CITY) This document grants the City a 25-foot easement on the east side of the west plat line of SSDI North for the Baywalk in perpetuity. Satisfaction of Mortgage and Judgments, from West Side to the City. (CITY /RDA) This document evidences satisfaction judgments against the City in favor of SSDI, which was West Side's predecessor in interest. The judgment amount was stated in the 1995 Portofino Settlement Agreement to be $11,375,000, at that time. Grant of Easements (ISO-Foot Easement), from West Side, as Grantor to the City, as Grantee. (CITY/RDA) This document grants the city a ISO-foot easement, of which the Marina will have exclusive use ofthe south 100 feet, while the north 50 feet will be a shared driveway. The easement lies north of the core Parcel and south of the buildings to be constructed on SSDI North. It will provide access to the Baywalk and the Core Building for Marina users and pedestrians, as well as vehicular access to the marina parking and Monty's valet area. Release of Access and Utility Easements. (CITY) This document releases a utility easement in favor of the City across the "Diamond C Parcel". Access and Utility License and Removal Agreement. (CITY) This document allows the City to leave utility lines across the "Diamond C Parcel" until the City constructs the Washington Avenue Extension at which time the City will move the utility lines to the Washington Avenue Extension. The City must construct the Washington Avenue Extension within one year after the "Final Approvals" defined in the 1998 Settlement Agreement as secured (i.e., not later than 12/31/99). There are several construction permits that must be obtained in order to construct the W ashington Avenue extension. The Administration and City Attorney's office will establish the proper timeframes for construction and reflect the proper timeframes accordingly. Release of Easement. (CITY) This document releases an easement on SSDI South, which was granted under the 1986 Development Agreement, and has been superseded by the easements granted under the 1998 Settlement Agreement. Exh. (12) Exh. (13) Exh. (14) Exh. (15) Exh. (16) Exh. (17) Exh. (18) Grant of Easement for SSDI South Drop-Off Parking and Access Easement Agreement, from West Side, as Grantor, to the City, as Grantee. (CITY/RDA) This document grants two easements on SSDI South, one will be immediately south of the Yacht Club and will provide vehicular access for the Marina drop-off area and pedestrian access to the Baywalk. The other will be at the south end of the parcel and will be for pedestrian and emergency vehicle access to the Baywalk. Staging Area License. (CITY) This document provides for use of sidewalk and the westernmost lane of Alton Road to be used as a Staging Area for construction on SSDI North. This will allow some parking for the Marina to remain on SSDI North (and thereby, lessen the disruption to the marina Lessee's parking), while part of the parcel is under construction and reduce City/RDA costs to provide alternate parking the Marina during construction. Pump station removal agreement. (CITY) This document provides for the relocation of an existing pump station on the SSDI North parcel that must be removed within one year of securing of the "Final Approvals" . Lease Agreement (Yacht Club Garage). (CITY/RDA) This document provides a lease of 115 parking spaces in the Yacht Club by RDA for Marina parking. Lease Agreement (701-725 5th Street). (CITY) This document contains the lease agreement by the City of 3,000 square feet on 5th Street and Meridian. Washington Avenue Extension Easement Agreement. (CITYIRDA) This document grants the City an easement to extend Washington Avenue south of South Pointe Drive (Biscayne Street). The form of the Agreement for Purchase and Sale of the Alaska Parcel is to be approved substantially. (CITYIRDA) This Agreement is being submitted at this time for approval so that both sides will have agreed to the form of the contract in the event that the City decides to move forward with the purchase of the Alaska Parcel. This document provides that said Agreement for Purchase and Sale shall not be executed unless and until the Mayor and City Commission or the Chairman and Members of the RDA adopt a Resolution authorizing the purchase of the Alaska Parcel in accordance with the option granted in the 1998 Settlement Agreement. The Resolution authorizes the Mayor, Manager, City Attorney, City Clerk and other City officials to execute all documents necessary to carry out the intent of the 1998 Settlement Agreement. Special Counsel to the City in conjunction with the City Attorney's office have prepared all documents attached. Please refer to the City Attorney's memorandum (attached hereto) for a brief explanation of the purpose of each document. CONCLUSION The consideration of these documents and of the companion Concept Plan will be the final steps necessary to conclude the 1998 Settlement Agreement. As stated in previous reports, this settlement agreement will resolve, once and for all, a contentious and difficult situation, while minimizing financial exposure to the City and RDA. Significant concessions have been made by the developers from both financial and development perspectives. The City/RDA will be able to better manage its financial resources, by not having to construct a major marina parking garage up front, therefore allowing the tax increment funds (TIF) funds to be dedicated to needed infrastructure improvements. The 98 Concept Plan companion item provides more detail regarding the proposed development program on SSDI North and South. Attachments SR/JG/lrdv T:\AGENDA \SEP2398\REGULAR\ WESTSIDE.MEM West Side Partners, Ltd. 404 W ashington Avenue Suite 120 Miami Beach, Florida 33139 October 15, 1998 City of Miami Beach and Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: City Manager and Attn: City Attorney Miami Beach Marina Associates, Ltd. Miami Beach Marina 300 Alton Road Miami Beach, Florida 33139 Attn: Robert W. Christoph Re: Settlement Agreement and three (3) Amendments (collectively, the "Settlement Agreement") all entered into as of the _ day of October, 1998, by and among the City of Miami Beach, Florida (the "City"), the Miami Beach Redevelopment Agency (the "Agency") and West Side Partners, Ltd. ("West Side") as joined into by Miami Beach Marina Associates, Ltd. (the "Marina Lessee") Gentlemen: This letter is being entered into by and among the City, the Agency, West Side, and the Marina Lessee concurrently with the execution and delivery of the Settlement Agreement and in consideration and furtherance thereof. The parties to this letter hereby wish to clarify and confirm certain aspects and provisions of the Settlement Agreement as follows: 1. The address for West Side for all notices under the Settlement Agreement or with respect to matters set forth in the Settlement Agreement shall be: 404 W ashington Avenue Suite 120 Miami Beach, Florida 33139 Attn: Margaret Nee October 15, 1998 Page 2 with a copy to: Greenberg Traurig, P.A. 1221 Brickell Avenue Miami, Florida 33131 Attn: Matthew B. Gorson, Esq. 2. The various closing documents provided for in the Settlement Agreement shall be prepared in the form and substance as attached hereto and initialed by the parties for identification purposes, being as follows: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) (xvi) Release and Consent - Paragraph 4.2.1.1 Termination Agreement - Paragraph 4.2.1.2 Parking License - Paragraph 4.2.1.3.1 Improvements License - Paragraph 4.2.1.4 Waiver of Riparian Rights - Paragraph 4.2.1.5 Grant of Baywalk Easement - Paragraph 4.2.1.6 Satisfaction - Paragraph 4.2.1.7 ISO-Foot Easement - Paragraph 4.2.1.8 R~~&%~ccei~~rt.Easa~~?l~~ 4.2~~"'bJr ~ atteR ftflg v 'X'Mrc - Paragiap1i~.f~~1 Access and Utility License and Removal Agreement - Paragraph 4.2.2.~tUoOln'~ ~~r Releas~f Easement /Paragraph 4.2.2.3 SSDI South Drop-Off Parking and Access Easement - Paragraph 4.2.2.3 Staging Area License - Paragraph 4.2.3.1 Pump Station Removal Agreement - Paragraph 4.2.3.2 Form of Purchase and Sale Agreement - Paragraph 7 3. With respect to the provision to the Marina Lessee of a temporary storage site under the Improvements License, the City and West Side have further agreed to provide a trailer to the Marina Lessee for such purpose and in that regard the City and West Side shall each fund up to $5,000 for such purpose; and the Marina Lessee has agreed that any temporary parking spaces lost on the SSDI North Parcel as a result of the location of the temporary storage trailer need not be made up on the Porto fino Parcels. 4. With respect to the provision of permanent parking facilities and permanent facilities for laundry, lavatory and showers, retail/office space, and storage in the new parking garages to be built on the SSDI North Parcel, it was agreed that the form of agreement shall be a long-term lease in the same form in all material respects as utilized and approved for the October 15, 1998 Page 3 northern portion of the SSDI South Parcel for the Yacht Club project, but in conformance with the provisions of the Settlement Agreement and the understanding and agreement that: (i) any areas utilized to provide such facilities shall proportionately reduce the number of parking spaces required to be delivered to the City, the Agency and the Marina Leasee; and (ii) the City shall reimburse West Side pursuant to the "purchase price" component of the base rent in amounts equal to the cost of building and delivering such facilities as follows: (x) storage areas shall be paid for in an amount equal to what would have been paid for the parking spaces that are no longer built as a result of delivery of the storage space; (y) laundry, lavatory and shower facilities shall be paid for at West Side's actual cost; and (z) the retail/office space shall be paid for at West Side's actual cost and is intended to be delivered in "plain vanilla" form, meaning the shell improvements with utility and air conditioning stub outs included (but no interior work.) None of the space utilized for the City parking and/or these facilities shall be counted against West Side's floor area limitations nor otherwise affect any zoning or planning calculations including, without limitation, set backs, lot size and/or frontage. 5. Upon execution of the closing documents, the Marina Lessee will among other things release the SSDI North Parcel from the provisions of the Marina Lease and also release the existing 100 foot access easement referred to therein and in substitution thereof the Marina Lessee will receive the new Parking License, Improvements License, 150 Foot Easement and other documents provided for under the Settlement Agreement. 6. The City, the Agency and the Marina Lessee all have confirmed, and by virtue of the approval of the form of Parking License, the City Commission and Agency, have agreed that none of the lots in Blocks 51 and 52 (Plat Book 2, at page 81) shall be deemed part of the "Porto fino Parcels" for purposes of providing any temporary parking. 7. West Side has agreed to provide to the City, in connection with the City's use of certain space for offices at the "Deco Plaza Building" at 731 Fifth Street, the sum of $20,000 to be utilized towards the cost of purchasing and installing bathroom fixtures and related materials, and West Side shall also provide to the City, at West Side's October 15, 1998 Page 4 expense, a 5-ton air handler and compressor for use by the City at such offices. The foregoing shall be provided promptly following execution of a lease between the City and the owner of such space. 8. The parties to this letter further agree that conditioned upon closing under the Settlement Agreement, the baywalk easement and waiver of riparian rights utilized in connection with the closing of title to the SSDI South Parcel shall be modified to conform in all material respects to the form ofbaywalk easement and waiver of riparian rights attached to this letter. 9. The parties to this letter further agree that with respect to the provisions requiring insurance in a "commercially reasonable" amount that for the period commencing on the date hereof and extending for 5 years that $4,000,000 in total liability coverage (including so-called "umbrella coverage") will be deemed commercially reasonable. 10. The parties to this letter further agree that the provision set forth in paragraph 4.2.2.1.2.1 of the Settlement Agreement pursuant to which West Side would agree to an 18-month period not to commence construction on SSDI North under certain circumstances is not intended to, nor shall the same, be effective or enforceable. 11. The parties to this letter further agree that with respect to the 90-day time period for the City Commission to vote in favor of acquiring the Alaska Parcel pursuant to clause (i) of paragraph 7 of the Settlement Agreement, that such 90-day time period shall commence from the date of this letter agreement, being October 15, 1998, and that the time to enter into the Purchase and Sale Agreement pursuant to clause (iii) of such paragraph 7 shall be the later of 10 days following the issuance of the Final Approvals or 90-days following the date of this letter agreement. October 15, 1998 Page 5 As noted above, the foregoing is intended to clarify and confirm certain terms and provisions of the Settlement Agreement and closing documents thereunder, and except as provided therein, there are no further understandings or agreements among the parties to this letter with respect to the subject matter thereof except as specifically set forth in the Settlement Agreement, the closing documents to be executed pursuant thereto, and the various Final Approvals granted pursuant thereto. Sincerely, Signed, sealed and delivered in the presence of: WEST SIDE PARTNERS, LTD., a Florida limited partnership -jv ~ By: WEST SIDE PARTNERS, INC., a Florida corporation, General partner /~~ ;//"."-- IUt Name: M4TT ~ By: Name: Title: The foregoing is agreed and consented to: Name: "-.J (; ;' ( ,::)) /;1 .u I) '":._' \: \. c , I J , " CITY OF MIAMI BEACH, FLORIDA, ::uni;Lration i"'" . \~\~\)V'- Signed, sealed and delivered in the presence of: Jdkt p~ Name: g.oRbn-l p~ APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~~ 4rf! Date October 15, 1998 Page 6 }.~-( ! Name: <' /' },'-t:( /~_~/./, JE "i/:", {/;/.' t/ ''ii' Name: Name: Name: MIAMI/GORSONM/98733 7/15% I 02! .Doell 011 5/98 THE MIAMI BEACH REDEVELOPMENT AGENCY, a public agency organized existing pursuant to the Community Redevelopment Act of 1969, as amended, ;~~~:ti~~r:tatu:e:" Ie:> Title Chairman t;~ . \~(, .1,1, ~I ,... .\~ [) (1.. () , ." , Attest:--I~ I".U.{ ( r M ~ '.. ';;. Name: ~~()ttT PIMl1!-fR1L Title: (!,1'1 c.. Lb.-YJL- ' MIAMI BEACH MARINA ASSOCIATES, LTD., A Florida limited partnership By: SoBe Marine, Inc., a Florida corporation general partner '"I;" . .\ By: Robert W. Christoph, President APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION /~ft-R Dote NO. 2136 Gl13 10/15/98 12: 13 GTH REAL ESTATE ~ 931353747593 October 15, 1998 Page 6 The foregoing is agreed and consented to: Signed. sealed and delivered in the presence of: Name: Name: Name: Name: WITNESS: MtAMUQORSONMJ9B7337I1S% J 021.DOC/l 011 5198 CITY OF MIAMI BEACH. FLORIDA. a municipal corporation By: THE MIAMI BEACH REDEVELOPMENT AGENCY, a public agency orianized existing pursuant to the Community Redevelopment Act of 1969 j as amended. Chapter 163. Part ill Florida Statutes By: Name: Title Chairman Attest: Name: Title: MIAMI BEACH MARINA ASSOCIATES. L TO., A Florida limited partnership By: SoBe Marine, Inc.. a Florida corporation general partner