2016-29441 Reso RESOLUTION NO., 2016-29441
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE AND APPROVING A TERM SHEET, ATTACHED
HERETO AS EXHIBIT 1, FOR THE DEVELOPMENT OF A "GREEN
ALLEY" AT ESPANOLA WAY EAST/14TH PLACE AND OCEAN
COURT; AND AUTHORIZING THE ADMINISTRATION AND CITY
ATTORNEY TO NEGOTIATE A DEVELOPMENT AGREEMENT BASED
UPON THE APPROVED OF THE TERM SHEET.
WHEREAS, Betsy Ross South Beach Hotel located at 1440 Ocean Drive
(hereinafter the "Betsy Hotel"), and the Carlton South Beach Hotel located at 1433
Collins Avenue (hereinafter the "Carlton Hotel"), are owned by Betsy Ross Owner, LLC,
a Delaware limited liability company authorized to do business in the state of-Florida
(hereinafter"Developer"); and
WHEREAS, the Betsy Hotel and the Carlton Hotel are separated by a City
public right-of-way known as Ocean-Court, an alley that runs south to north parallel to
Ocean Drive; and
WHEREAS, the City previously granted an air rights easement to the
Developer, for a pedestrian bridge over Ocean Court, and the Developer obtained
design approval from the Historic Preservation Board for a "green alley" along Espanola
Way East (City Right-of-way known as 14th Place), and for Ocean Court; and
WHEREAS, the City Commission set the value of the air rights easement as
$240,000, which funds, once paid to the City, were to be designated for the design,
development and construction of a green alley; and
WHEREAS, on May 20, 2016, the Finance and Citywide Projects Committee
issued a recommendation to the City Commission to approve the Term Sheet, attached
as Exhibit "1", to this Resolution, and for the City Administration and City Attorney to
negotiate a final Development Agreement, based upon the approved Term Sheet with
Developer; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City
Commission hereby accept the recommendation of the Finance and Citywide Projects
Committee approval a Term Sheet, attached hereto as Exhibit 1, for the development of
a "green alley" at Espanola Way East/14th place and Ocean Court; and further authorize
the City Administration and City Attorney to negotiate a Development Agreement based
upon the attached, approved the Term Sheet.
PASSED and ADOPTED this ' day of -74ne , 2016.
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Phil. `:' e!Mayor
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TERM SHEET FOR "GREEN ALLEY" DEVELOPMENT AGREEMENT
1. PARTIES.
The City of Miami Beach ("City") and the Betsy Ross Owner, LLC ("Developer").
2. PROPERTY.
a. The Developer is the owner of that certain parcel of land located at 1440
Ocean Drive and 1433 Collins Avenue, Miami Beach, Florida.
b. The City is the owner of the Espanola Way East right-of way at 14th Place.
3. PROJECT.
a. The City and the Developer intend to enter into a Development Agreement to
improve that portion of the City right-of-way on 14th Place, lying between
Collins Avenue and Ocean Drive ("the Project ").
b. Except for the City Costs (as defined in 3(c) below), the Developer will
pay all costs associated with the design, development, permitting, and
construction of the Project, which shall include, but not be limited to, the
following improvements:
i. Modified pedestrian access way along 14th Place, from Collins
Avenue to Ocean Court;
ii. Landscaping along 14th Place/Espanola Way East, from
Collins Avenue to Ocean Court;
iii. Non-standard photovoltaic lighting, from Collins Avenue to
Ocean Court; and
iv. Remove the current bollard lighting on the sidewalk lying
between Ocean Drive and Ocean Court, and replace the same
with lighting integrated within or otherwise affixed to the
north-side of the Betsy Hotel (for the purpose of illuminating
the sidewalk).
{Collectively, the Project improvements generally described in (b)(i)-(iv) above
shall be referred to as the "Public Improvements").
Betsy Green Alley—Term Sheet
June 8, 2016
Page-2 of 4
c. The total estimated cost of the Public Improvements is approximately $720,247
(inclusive of hard and soft costs) and broken down as follows:
Demolition $ 10,000
Planting and Irrigation $ 47,640
Lighting (Nonstandard) $ 87,500
Drainage $135,000
Hardscape (including non-
Standard pavers) $ 72,465
Underground Utility-FPL $ 165,000
Total Construction $517,605
Contract Administration(15%) $ 77,641
Administrative Fee (10%) $ 59,525
Contingency(10%) $ 65,477
Total' $ 720,247
d. The City shall contribute a maximum of $720,247 ("City Costs") toward the
Developer's design, development, permitting, and construction of the Public
Improvements. The City shall pay on a reimbursement basis. The City shall not be
responsible for the disbursement of any sums in excess of the City Costs, except
for City approved change orders.
e. Developer shall:
i. Design, develop, permit, and construct the Public Improvements.
ii. Maintain and perform minor repairs of the Public Improvements for an
initial term of ten (10) years, at the rate of up to $100,000 per year, for a
maximum obligation toward that maintenance of$1,000,000, Developer
shall be responsible for routine cleaning and repairs to the Public
Improvements, but shall not be responsible for force majeure type repairs.
iii. Notwithstanding (e)(ii above, Developer shall, at its sole cost and
expense, maintain and perform all repairs and replacements, in
perpetuity, relating to those Public Improvements that are defined by the
parties in the Development Agreement, including, but not limited to the
artistic elements generally described in subsection (eXiv) below; pavers;
lighting; trash receptacles; and signage. The "non-standard
improvements" shall be defined in the Development Agreement and shall
also be subject to prior City review and approval.
iv. Design, develop, construct and maintain [in accordance with (e)(ii)
above] one or more artistic elements, which may include, but not be
limited to a "poetry walk," or guardrail system embedded with poetry
above the café with appropriate light illumination, for the benefit of the
The total Public Improvements costs do not include approximately$200,000 in installation of new water and sewer
lines.
Betsy Green Alley—Term Sheet
June 8, 2016
Page 3 of 4
public within or immediately adjacent to the Public Improvements, at a
value of approximately $100,000. The artistic element(s) will be defined
in the Development Agreement, and shall be subject to prior City review
and approval.
OTHER TERMS.
a. The City shall have review over, and final approval of, the design and
construction plans and specifications for the Public Improvements to ensure that
the Improvements are designed to meet the City's needs and standards. The City
shall require a copy of all actual cost estimates, plans, and construction related
contracts prior to and during construction.
b. The City shall also have review over, and final approval of, the non-standard
improvements (as shall be defined in the Development Agreement, and the artistic
elements referenced in subsection (3)(e)(iv).
c. The City intends to install the water and sewer pipes, as well, as replace or repair
all utilities within the City's right-of-way, prior to commencement of construction
of the Public improvements. However, should the Public Improvements be
installed prior-to the replacement of the water and sewer pipes, Developer shall
execute a hold harmless agreement in favor of the City, since the Public
Improvements may be removed when the water and sewer pipes are installed.
Developer shall be required to re-install any non-standard improvements.
d. The Developer shall deliver, for the City's review and approval, an estimated
budget for the total cost (i.e. hard and soft costs) of the Public Improvements,
which budget shall be based upon the City-approved design and construction
plans and specifications. At its sole option and discretion, the City may retain a
consultant (i.e. such as a professional cost estimator) to verify the Developer's
total estimated cost, with the cost of the consultant to be paid for by the
Developer. Developer shall provide copies of all actual costs and invoices.
e. The Developer and the City will work cooperatively to seek approval of the
design and development of the Public Improvements. The Developer will be
responsible for submitting any required applications for development approvals,
and for securing any and all final, non-appealable development approvals and
permits.
f. The Developer shall enter into a cost plus with a Guaranteed Maximum Price
contract (GMP Contract) with a contractor (General Contractor) to construct the
Public Improvements. It is the intent of the Developer to utilize GT McDonald,
(who is already mobilized and building the Carlton Hotel) to construct the Public
Improvements. All subcontractor and vendor trades will be competitively bid out.
Betsy Green Alley—Term Sheet
June 8, 2016
Page 4 of 4
Notwithstanding the above, the City shall have the right to review and approve the
GMP Contract with the selected General Contractor prior to such Contract being
executed between the Developer and General Contractor. The City shall be a third
party beneficiary to the GMP Contract.
g. The Developer shall cause its General Contractor to provide warranties,
indemnities, and insurance in favor of the City. Prior to commencement of
construction, the Developer shall cause the General Contractor to furnish the City
with payment and performance bonds that identify City and the Developer as co-
obligees. The General Contractor shall be required to obtain a Right-of-Way
permit for construction.
h. The Developer shall develop a plan for Public Improvements construction staging
in order for access to the adjacent commercial areas to be continually maintained,
with only minimal disruptions. Such plan shall be subject to the City's prior
review and approval, which shall not be unreasonably withheld, conditioned or
delayed.
i. Final completion of the Public Improvements will occur within 18 months
following execution of the Development Agreement.
j. The Public Improvements must contain green elements, in order to qualify and be
entitled to the City's "green alley" funds. Only those elements that qualify as
"green"may be paid for out of the City's "green alley" fund.
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Accepting The
Recommendation Of The Finance And Citywide Projects Committee And Approving A Term Sheet,Attached Hereto As
Exhibit 1, For The Development Of A "Green Alley" At Espanola Way East/14th Place And Ocean Court; And
Authorizing The Administration And City Attorney To Negotiate A Development Agreement Based Upon The Approval
Of The Term Sheet.
Key Intended Outcome Supported:
Build and maintain priority infrastructure with full accountability
Item Summary/Recommendation:
Betsy Ross South Beach Hotel located at 1440 Ocean Drive (hereinafter the"Betsy Hotel"), and the Carlton South
Beach Hotel located at 1433 Collins Avenue(hereinafter the"Carlton Hotel"),are owned by Betsy Ross Owner, LLC,a
Delaware limited liability company authorized to do business in the State of Florida (hereinafter"Developer"). The
Betsy Hotel and the Carlton Hotel are separated by a City public right-of-way known as Ocean Court,an alley that runs
south to north parallel to Ocean Drive.
The City previously granted an air rights easement to the Developer, for a pedestrian bridge over Ocean Court, and
the Developer obtained design approval from the Historic Preservation Board for a"green alley"along Espanola Way
East(City right-of-way known as 14th Place), and for Ocean Court. The City Commission set the value of the air rights
easement as$240,000, which funds, once paid to the City, were to be designated for the design, development and
construction of a"green alley".
On May 20, 2016, the Finance and Citywide Projects Committee issued a recommendation to the City Commission to
approve the Term Sheet, attached as Exhibit"1",to this Memorandum and Resolution, and for the City Administration
and City Attorney to negotiate a final Development Agreement, based upon the approved Term Sheet with the
Developer.
THE ADMINISTRATION RECOMMENDS ACCEPTING THE RECOMMENDATION OF THE FINANCE COMMITTEE.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: 1
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Eric Carpenter, Public Works X6012
Sign-Offs:
Asst. Departme ector Assistant Cit nager/DPW City ager
JJP ETC JLM
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•
Agenda F
MIAN\I BEACH Date 6-Y-/6
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members 4if the City C(mmission
FROM: Jimmy L. Morales, City Manager
DATE: June 8, 2016
SUBJECT: A RESOLUTION OF THE MAYO'- AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE AND APPROVING A TERM
SHEET, ATTACHED HERETO AS EXHIBIT 1, FOR THE DEVELOPMENT OF A
"GREEN ALLEY" AT ESPANOLA WAY EAST/14TH PLACE AND OCEAN COURT;
AND AUTHORIZING THE ADMINISTRATION AND CITY ATTORNEY TO
NEGOTIATE A DEVELOPMENT AGREEMENT BASED UPON THE APPROVAL OF
THE TERM SHEET.
BACKGROUND
Betsy Ross South Beach Hotel located at 1440 Ocean Drive (hereinafter the "Betsy Hotel"),
and the Carlton South Beach Hotel located at 1433 Collins Avenue (hereinafter the "Carlton
Hotel"), are owned by Betsy Ross Owner, LLC, a Delaware limited liability company authorized
to do business in the State of Florida (hereinafter "Developer"). The Betsy Hotel and the
Carlton Hotel are separated by a City public right-of-way known as Ocean Court, an alley that
runs south to north parallel to Ocean Drive.
The City previously granted an air rights easement to the Developer, for a pedestrian bridge
over Ocean Court, and the Developer obtained design approval from the Historic Preservation
Board for a "green alley" along Espanola Way East (City right-of-way known as 14th Place),
and for Ocean Court. The City Commission set the value of the air rights easement as
$240,000, which funds, once paid to the City, were to be designated for the design,
development and construction of a "green alley".
On May 20, 2016, the Finance and Citywide Projects Committee issued a recommendation to
the City Commission to approve the Term Sheet, attached as Exhibit "1", to this Memorandum
and Resolution, and for the City Administration and City Attorney to negotiate a final
Development Agreement, based upon the approved Term Sheet with the Developer.
CONCLUSION
The Administration recommends accepting the recommendation of the Finance Committee.
JLM/CM/WRB/EB
T:WGENDA\2016\June\Public Works\17th street alton rd ct.docx