2018-30237 ResolutionRESOLUTION NO.
2018 -30237
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, ON FIRST READING OF
THIS RESOLUTION, AND APPROVING, AN AMENDMENT NO. 1 TO LEASE
BETWEEN THE CITY AND MIAMI BEACH SENIOR CITIZENS HOUSING
DEVELOPMENT CORPORATION, INC. (LESSEE), IN CONNECTION WITH THE
CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE ELDERLY HOUSING AT
COUNCIL TOWERS SOUTH, LOCATED AT 533 COLLINS AVENUE, MIAMI
BEACH, FLORIDA, FOR A PERIOD OF FIFTY YEARS, COMMENCING JULY 9,
2026 AND ENDING JULY 8, 2076; FURTHER WAIVING THE COMPETITIVE
BIDDING REQUIREMENT IN SECTION 82 -39(A) OF THE CITY CODE, FINDING
SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND SETTING A
PUBLIC HEARING, AS REQUIRED PURSUANT TO SECTION 82- 37(A)(2) OF THE
CITY CODE, FOR SECOND (AND FINAL) READING AND PUBLIC HEARING.
WHEREAS, on or about July 8, 1976, the City Commission of the City of Miami Beach
adopted Resolution No. No. 1976 - 15085, approving a Lease Agreement between the City and
Senior Citizens Housing Development Corporation of Miami Beach ( "Lease "), for certain air rights
and easements to City -owned property located at 533 Collins Avenue, for the construction and
operation of a residential building for elderly housing ( "Council Towers South" or the "Building "), and
with the City retaining the rights to the management and operation of the municipal parking lot on
the ground floor below the demised premises; and
WHEREAS, the Lease had an initial term of fifty (50) years, expiring on July 8, 2026; and
WHEREAS, the Building was completed in 1979, and includes 125 residential dwelling units, .
providing quality affordable rental housing for low - income seniors; and
WHEREAS, on or about March 8, 1978, and in accordance with Section 34 of the Lease,
the original lessee, Senior Citizens Housing Development Corporation of Miami Beach, assigned
the Lease to Lessee, and such assignment was duly recorded in O.R. Book 9967, Page 230 of the
public records of Miami -Dade County; and
WHEREAS, Lessee desires to obtain financing, either through a leasehold mortgage, low
income housing tax credit equity providers, or other financing vehicles eligible for affordable /elderly
housing projects such as the Building, for the purpose of constructing certain capital improvements
or other renovations to the Building, including building systems, individual dwelling units, and
common areas, with the intent for such improvements, as defined more fully in Section II of this
Amendment No. 1, to improve security, safety, and the quality of living conditions for the Building's
residents; and
WHEREAS, in order to obtain Tong -term financing for the Lessee's proposed renovations,
Lessee requests an extension of the Term, for a period of fifty (50) years, following the expiration of
the initial term on July 8, 2026; and
WHEREAS, in view of the City Commission's desire to support and incentivize affordable
housing projects within the City of Miami Beach, including affordable elderly housing, the City
Commission desires to extend the term of the Lease, and waives the competitive bidding and
appraisal requirements of Chapter 82 -37 and 82 -39 of the City Code, finding it in the best interests
of the City to do so; and
WHEREAS, a lease of ten years or more of the 533 Collins Avenue property is governed by
the provisions of Section 1.03(b)(4) of the City Charter, and requires approval of a majority 4 /7ths
vote of all members of the Planning Board, and a 6 /7ths vote of the City Commission; and
WHEREAS, on December 19, 2017, following consideration of the Planning Department
analysis required pursuant to Section 82 -38 of the City Code, the proposed lease extension was
unanimously approved by the Planning Board; and
WHEREAS, on February 23, 2018, as required by Section 82 -37 of the City Code, the
Finance and Citywide Projects Committee reviewed the proposed lease, and unanimously
recommended that the Mayor and City Commission approve the foregoing Amendment No. 1., a
copy of which is attached to the Commission Memorandum accompanying this Resolution.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the
recommendation of the Finance and Citywide Projects Committee, on first reading of this Resolution,
and approve, an Amendment No. 1 to the Lease between the City and Miami Beach Senior Citizens
Housing Development Corporation, Inc. (Lessee), in connection with the City's lease of air rights for
affordable elderly housing at Council Towers South, located at 533 Collins Avenue, Miami Beach,
Florida, for a period of fifty years, commencing July 9, 2026 and ending July 8, 2076; further waiving
the competitive bidding requirement in Section 82 -39(a) of the City Code, finding such waiver to be
in the best interest of the City; and setting a public hearing, as required pursuant to Section 82-
37(a)(2) of the City Code, for second (and final) reading and public hearing.
PASSED AND ADOPTED this 7 day of Marti 2018.
ATTEST:
Rafael Granado, City C erk
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney �tq.' Date
AALAM
BEACH
Resolutions - R7 C
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 7, 2018
First Readings
SUBJECT: 1. 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, ON FIRST READING OF
THIS RESOLUTION, AND APPROVING, AN AMENDMENT NO. 1 TO LEASE
BETWEEN THE CITY AND MIAMI BEACH SENIOR CITIZENS HOUSING
DEVELOPMENT CORPORATION, INC. (LESSEE), IN CONNECTION WITH THE
CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE ELDERLY HOUSING AT
COUNCIL TOWERS SOUTH, LOCATED AT 533 COLLINS AVENUE, MIAMI BEACH,
FLORIDA, FOR A PERIOD OF FIFTY YEARS, COMMENCING JULY 9, 2026 AND
ENDING JULY 8, 2076; FURTHER WAIVING THE COMPETITIVE BIDDING
REQUIREMENT IN SECTION 82 -39(A) OF THE CITY CODE, FINDING SUCH
WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND SETTING A PUBLIC
HEARING, AS REQUIRED PURSUANT TO SECTION 82- 37(A)(2) OF THE CITY
CODE, FOR SECOND (AND FINAL) READING AND PUBLIC HEARING.
2. 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, ON FIRST READING OF
THIS RESOLUTION, AND APPROVING, AN AMENDMENT NO. 1 TO LEASE
BETWEEN THE CITY AND MIAMI BEACH SENIOR CITIZENS HOUSING
DEVELOPMENT CORPORATION, INC. (LESSEE), IN CONNECTION WITH THE
CITY'S LEASE OF AIR RIGHTS FOR AFFORDABLE ELDERLY HOUSING AT
COUNCIL TOWERS NORTH, LOCATED AT 1040 COLLINS AVENUE, MIAMI
BEACH, FLORIDA, FOR A PERIOD OF FIFTY YEARS, COMMENCING JULY 9,
2026 AND ENDING JULY 8, 2076; FURTHER WAIVING THE COMPETITIVE
BIDDING REQUIREMENT IN SECTION 82 -39(A) OF THE CITY CODE, FINDING
SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY; AND SETTING A
PUBLIC HEARING, AS REQUIRED PURSUANT TO SECTION 82- 37(A)(2) OF THE
CITY CODE, FOR SECOND (AND FINAL) READING AND PUBLIC HEARING.
RECOMMENDATION
Adopt the Resolutions.
BACKGROUND
The City of Miami Beach ( "Lessor ") and Miami Beach Senior Citizens Housing Development
Corporation, Inc., as assignee of Senior Citizens Housing Development Corporation of Miami Beach
( "Lessee "), are parties to two separate, but similar, lease agreements, both dated July 9, 1976
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(collectively "Leases "). The Leases are for the air rights located above the City -owned properties
located at 533 Collins Avenue ( "Council Towers South ") and 1040, Collins Avenue ( "Council Towers
North "). Council Towers South is a 12 story building consisting of 125 units and approximately
115,231 square feet. Council Towers North is a 12 story building consisting of 125 units and
approximately 115,036 square feet. Both properties were completed in 1979 and offer quality
affordable housing for low- income senior citizens.
Basic Lease Terms
Lessee: Miami Beach Senior Citizens Housing Development Corporation, Inc., as assignee of Senior Citizens
Housing Development Corporation of Miami Beach
Demised Premises: Air rights for properties located at 533 Collins Avenue and 1040 Collins Avenue, Miami Beach,
Florida
Use: The Demised Premises shall be limited in use to the construction and operation of housing for the elderly under
Section 202 of the Housing Act of 1959, as amended.
Execution Date: July 9, 1976
Initial Term: Fifty(50)years, commencing July9, 1976 and ending July8, 2026.
Renewal Options: In the event Lessee is granted an extension on the original mortgage, the lease shall be renewed
for the period of the extension beyond the original fifty (50) year term. (Does not apply to this extension request
because lessee is seeking a new mortgage).
RentAmount: Council Towers South - $21, 500 annually; Council Towers North - $19,125 annually
Maintenance /Operation: Lessee is responsible for all real estate taxes, insurance, maintenance costs, and utilities
for the Demised Premises.
Surrender: On the last day of the term, or on the earlier termination thereof, Lessee shall deliver the Demised
Premises, together with the building or any new building, and all alterations, changes, additions and improvements
which may have been made upon the premises, in thorough repair, good order and safe condition.
ANALYSIS
On August 31, 2017, representatives from Lessee met with the Administration to discuss a request for
an extension of the Leases, for a period of fifty (50) years, in order to facilitate the refinancing of both
properties. Lessee submitted a formal request for an extension of the air rights leases, dated August
16, 2017, attached hereto as Exhibit A (Request for Extension of Air Rights Leases). The lease
extension will reaffirm, and will have no effect on, the municipal parking spaces located at both sites.
As stated in the request letter, Lessee intends to use the proceeds of the refinancing for capital
renovations to the properties. The renovations would include, but not be limited to, site work, exterior
facade work, new windows, interior common areas and office renovations, apartment renovations,
and building systems (e.g., elevators, roof, electric, plumbing, water pumps, generators, fire alarm
systems, etc.).
The Administration has worked with Lessee to provide modifications to the lease extension
agreement, including, but not limited to, the items below.
1. include enhancements to generator capacity to ensure continued operation of HVAC, elevators, life
safety systems, etc. after a tropical storm or hurricane for a period up to 96 hours after loss of power;
Page 1118 of 1522
2. criteria for condition of building /units at the end of the extended term;
3. comply with Miami Dade County 40 year recertification requirements, and subsequent 10 year
recertification requirements;
4 . proactively manage and comply with the required Miami -Dade County annual registration of
eligible tenants for the County's Emergency Evacuation Assistance Program (EEAP) for the elderly
and /or disabled individuals who:
a) are unable to evacuate on their own due to a specialized transportation need
b) are homebound residents and unable to walk to a bus pickup point and do not have anyone that
can provide transportation
c) have medical needs that prevent them from evacuating on their own
d) are bedbound patients
e) are on life- sustaining medical equipment that requires electricity
f) require assistance with daily living activities
5. comply with required Miami Beach registration of other residents who need some type of daily
assistance to live on their own, including completion of annual assessment form.
In accordance with Section 1.03(b)4 of Article I of the charter of the City of Miami Beach, a lease of
ten (10) years or longer of City -owned property (other than public beach rights -of -way and those
properties addressed specifically in Section 1.03 of the Charter) shall, as provided by Ordinance,
require approval by a majority 4/7 vote of all members of the Panning Board and 6/7 vote of the City
Commission. On October 18, 2017, at the request of Commissioner Arriola, the City Commission
referred the extension of the lease agreements to the Finance and Citywide Projects Committee and
Planning Board for discussion.
Planning Board
Pursuant to Section 1.03(b)(4), of the City Charter, the Planning Board met on December 19, 2017,
and unanimously recommended in favor of the proposed lease extensions. The Planning Analysis is
attached hereto as Exhibit B (Planning Board Analysis).
Finance and Citywide Projects Committee
At the November 8, 2017 Finance and Citywide Projects Committee (FCWPC) meeting, the
Administration presented the terms and conditions set forth above. The FCWPC considered this
matter and recommended approving the lease extensions subject to the modifications set forth above
and further recommended including additional requirements to the lease extension to provide for
accommodating residents during the renovation, implementing a resident satisfaction survey and
providing for City inspection rights to ensure the building is adequately maintained. These additional
requirements were subsequently included in the lease extension amendments, attached hereto as
Exhibit C (Amendment No. 1 to Lease Agreement — Council Towers South) and Exhibit D
(Amendment No. 1 to Lease Agreement — Council Towers North). This matter was again discussed
at the February 23, 2018 FCWPC meeting.. The FCWPC recommended in favor of approving the
lease extensions subject to the modifications set forth in this memorandum.
CONCLUSION
The Administration recommends in favor of executing an Amendment No. 1 to Lease Agreements for
Council Towers South and Council Towers North, with Miami Beach Senior Citizens Housing
Development Corporation, Inc., in accordance with the above stipulated terms and conditions.
Legislative Tracking
Tourism, Culture, and Economic Development
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