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HomeMy WebLinkAbout2003-25170 Reso RESOLUTION NO. 2003-25170 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO TWO, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 142 PARKING SPACES, PERMANENT LAUNDRY, LAVATORY AND SHOWER FACILITIES AND A TRASH ROOM AND MAINTENANCE BUILDING, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE MURANO GRANDE PROJECT ON THE SOUTH PORTION OF THE SSDI-NORTH PARCEL; RATIFYING THE APPROPRIATION OF $1,844,256 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF 137 PARKING SPACES AND THE OTHER DESCRIBED FACILITIES; RATIFYING THE APPROPRIATION OF $101 FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND RATIFYING THE APPROPRIATION OF $10,020 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE; FURTHER AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO THREE, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 206 PARKING SPACES, PERMANENT OFFICE SPACE AND ELECTRIC ROOM, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE ICON PROJECT, ON THE NORTH PORTION OF THE SSDI-NORTH PARCEL; RATIFYING THE APPROPRIATION OF $2,585,375 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF THE CITY UNIT; RATIFYING THE APPROPRIATION OF $101 FOR THE SINGLE FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND RATIFYING THE APPROPRIATION OF $15,560 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE. WHEREAS, the City of Miami Beach and the Miami Beach Redevelopment Agency ("RDA"), entered into an agreement dated November 7, 1995 (the "Development Agreement"), with West Side Partners, Ltd., a Florida limited partnership (''West Side"), East Coastline Development Ltd., a Florida limited partnership, 404 Investments, Ltd., a Florida limited partnership, Azure Coast Development, Ltd., a Florida limited partnership, Beachwalk Development Corporation, a Florida corporation, Portofino Real Estate Fund, Ltd., a Florida limited partnership, St. Tropez Real Estate Fund, Ltd., a Florida limited partnership, and Sun & Fun, Inc., a Florida corporation (collectively the "Portofino Entities") and the City of Miami Beach, Florida (the "City"); and WHEREAS, pursuant to the Development Agreement, the City, RDA and West Side entered into a Parking Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed on the parcel known as SSDI South (the "Parking Agreement"); and the Parking Agreement survived the 1995 Settlement Agreement with Portofino; and WHEREAS, in conjunction with the settlement of the 1997 Litigation, the City, the RDA and Developer entered into a Settlement Agreement; pursuant to the Settlement Agreement, the City, RDA and West Side entered into an Amended and Restated Parking Agreement, dated April 24, 1999, to amend and restate the existing Parking Agreement in its entirety to provide the City and the RDA with certain permanent parking facilities, as well as laundry, lavatory and showers, retail/office space and storage to be located upon the SSDI North parcel for use by the Miami Beach Marina Associates, Ltd., a Florida limited partnership for the benefit of the Miami Beach Marina and the public generally; and WHEREAS, in accordance with the Amended and Restated Parking Agreement, The Related Group, a Florida limited partnership, as successor developer of a portion of the parcel known as SSDI South, has delivered to the City and the RDA. two (2) leases executed by its duly authorized representative, dated as of March 14, 2003, for said parking spaces, laundry, lavatory and showers, retail/office and storage facilities in the Murano Grande and ICON projects; and WHEREAS, the Amended and Restated Parking Agreement survives the 1995 Settlement Agreement with Portofino and provides for the Agency to pay the capital costs, base rent payment and pro-rata share of operating expenses for the 142 parking spaces, laundry and bathroom facilities, trash room, and maintenance facilities, located in the first floor parking garage of the Murano Grande Project; and 206 parking spaces, retail/office and electric room, located in the first floor parking garage of the ICON Project; and these projects are connected by the parking garage; and WHEREAS, the City and Agency are obligated to the Marina Lessee via its Fourth Amendment to Marina Lease Agreement, Article 3.1.2.1 to provide the retail/ office space improvements on SSDI - North similar to those existing at the Junior's Building as of April 15,1998;and WHEREAS, as stated in the Amended and Restated Parking Agreement, the City and Agency must pay in advance, on a monthly basis, its proportionate share of operating expenses for the City facilities located within the Murano Grande and ICON projects. The City's proportionate share is estimated to be 31.9% and 38.6% for the Murano Grande and ICON projects, respectively. NOW, THEREFORE, BE IT DULY RESOLVED BY MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the Mayor and the City Clerk to execute a lease agreement between Murano Two, Ltd., a Florida Limited Partnership, the City of Miami Beach, Florida, and the Miami Beach Redevelopment Agency for the City unit, which consists of 142 parking spaces, permanent laundry, lavatory and shower facilities and a trash room and maintenance building, located on the first floor of the parking garage of the Murano Grande project on the south portion of the SSDI-North parcel; ratify the appropriation of $1,844,256 from the South Pointe Redevelopment Tax Increment fund for the payment of the capital cost of 137 parking spaces and the other described facilities; ratify the appropriation of $1 01 for the single installment of base rent for the initial 1 01-year term of the lease; and ratify the appropriation of $1 0,020 for the proportionate share of operating expenses for the first year as provided in the lease; further authorize the Mayor and the City Clerk to execute a lease agreement between Murano Three, Ltd., a Florida Limited Partnership, the City of Miami Beach, Florida, and the Miami Beach Redevelopment Agency for the City unit, which consists of 206 parking spaces, permanent office space and electric room, located on the first floor of the parking garage of the ICON project, on the north portion of the SSDI-North parcel; ratify the appropriation of $2,585,375 from the South Pointe Redevelopment Tax Increment Fund for the payment of the capital cost of the City unit; ratify the appropriation of$1 01 forthe single for the single installment of base rent for the initial101-yearterm of the lease; and ratify the appropriation of $15,560 for the proportionate share of operating expenses for the first year as provided in the lease. PASSED and ADOPTED this 9th d ,2003. A~r ftuduL CITY CLERK T:IAGENDA\2003lapr0903lregula"MURANO.ICON.CMSRES.doc. APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION CI1Y OF MIAMI BEACH CONMISSION ITEM SUMMARY m Condensed Title: A Resolution authorizing the Mayor and City Clerk to execute the leases between the City of Miami Beach and the Miami Beach Redevelopment Agency with Murano Two, LTD. and Murano Three, LTD., respectively be authorized and that the appropriation of $1,844,256 for the payment of capital costs of 137 parking spaces, permanent laundry, lavatory and shower facilities and a trash room and maintenance building facilities, the $101 representing the initial101-yearterm of the lease, and the $10,020 annual pro-rata share of operating expenses for the Murano Grande Project; in conjunction with the $2,585,375 for the payment of capital costs of 206 parking spaces, and permanent office/retail space and electric room, the $101 representing the initial101-year term of the lease, and the $15,560 annual pro-rata share of operating exoenses for the ICON Proiect be ratified from the South Pointe Redevelopment Tax Increment Fund. Issue: Pursuant to the Development Agreement, the City, RDA and West Side entered into a Parking Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed on the parcel known as SSDI South (the "Parking Agreement"). The Parking Agreement survived the 1995 Settlement Agreement with Portofino. Pursuant to the Settlement Agreement, the City, RDA and West Side entered into an Amended and Restated Parking Agreement, dated April 24, 1999, to amend and restate the existing Parking Agreement in its entirety to provide the City and the RDA with certain permanent parking facilities, as well as laundry, lavatory and showers, retail 1 office space and storage to be located upon the SSDI North parcel for use by the Miami Beach Marina Associates, Ltd., a Florida limited partnership for the benefit of the Miami Beach Marina and the public generally. The Amended and Restated Parking Agreement survives the 1995 Settlement Agreement with Portofino and provides for the Agency to pay the capital costs, base rent payment and pro-rata share of operating expenses for the 142 parking spaces, laundry and bathroom facilities, trash room, and maintenance facilities, located in the first floor parking garage of the Murano Grande Project; and 206 parking spaces, retail/ office and electric room, located in the first floor parking garage of the ICON Pro.ect. These ro"ects are connected b the arkin ara e. Item Summa IRecommendation: In accordance with the South Pointe Redevelopment Plan, the RDA is to provide and maximize the parking facilities in the district. Therefore, it is recommended that the execution of the leases between the City of Miami Beach and the Miami Beach Redevelopment Agency with Murano Two, LTD. and Murano Three, LTD., respectively be authorized and that the appropriation from the South Pointe Tax Increment Fund of $1,844,256 for the payment of capital costs of 137 parking spaces, and other described facilities, the $101 representing the initial101-year term of the lease, and the $10,020 annual pro-rata share of operating expenses for the Murano Grande Project; in conjunction with the $2,585,375 for the payment of capital costs of 206 parking spaces, and other described facilities, the $101 representing the initial 1 01-year term of the lease, and the $15,560 annual ro-rata share of 0 eratin ex enses for the ICON Pro.ect be ratified. Advisory Board Recommendation: IN/A Financial Information: Source of Amount Account Approved Funds: 1 $1,854,377 South Pointe RDA TIF D 2 $2,601,036 South Pointe RDA TIF 3 4 Finance Dept. Total $4,455,413 Ci Clerk's Office Le islative Trackin Christina M. Cuervo/Alexandra Rolandelli n-Offs: Department Director Assistant City Manager City Manager T:\AGENDA\2003\apr0903\rda\MURANO-ICON.SUM.doc L c Agenda Item Date ~7A 9- 9-03 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov m To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. GOnZale~ City Manager Date: April 9, 2003 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO TWO, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 142 PARKING SPACES, PERMANENT LAUNDRY, LAVATORY AND SHOWER FACILITIES AND A TRASH ROOM AND MAINTENANCE BUILDING, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE MURANO GRANDE PROJECT ON THE SOUTH PORTION OF THE SSDI-NORTH PARCEL; RATIFYING THE APPROPRIATION OF $1,844,256 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF 137 PARKING SPACES AND THE OTHER DESCRIBED FACILITIES; RATIFYING THE APPROPRIATION OF $101 FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND RATIFYING THE APPROPRIATION OF $10,020 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE; FURTHER AUTHORIZING THE MAYOR AND THE CITY CLERK TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO THREE, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 206 PARKING SPACES, PERMANENT OFFICE SPACE AND ELECTRIC ROOM, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE ICON PROJECT, ON THE NORTH PORTION OF THE SSDI-NORTH PARCEL; RATIFYING THE APPROPRIATION OF $2,585,375 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF THE CITY UNIT; RATIFYING THE APPROPRIATION OF $101 FOR THE SINGLE FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND RATIFYING THE APPROPRIATION OF $15,560 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE. RECOMMENDATION: Adopt the Resolution. City of Miami Beach Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 2 BACKGROUND: The City of Miami Beach and the Miami Beach Redevelopment Agency ("RDA"), entered into an agreement dated November 7,1995 (the "Development Agreement"), with West Side Partners, Ltd., a Florida limited partnership ("West Side"), East Coastline Development Ltd., a Florida limited partnership, 404 Investments, Ltd., a Florida limited partnership, Azure Coast Development, Ltd., a Florida limited partnership, Beachwalk Development Corporation, a Florida corporation, Portofino Real Estate Fund, Ltd., a Florida limited partnership, St. Tropez Real Estate Fund, Ltd., a Florida limited partnership, and Sun & Fun, Inc., a Florida corporation (collectively the "Portofino Entities") and the City of Miami Beach, Florida (the "City"). Pursuant to the Development Agreement, the City, RDA and West Side entered into a Parking Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed on the parcel known as SSDI South (the "Parking Agreement"). The Parking Agreement survived the 1995 Settlement Agreement with Portofino. In conjunction with the settlement of the 1997 Litigation, the City, the RDA and Developer entered into a Settlement Agreement. Pursuant to the Settlement Agreement, the City, RDA and West Side entered into an Amended and Restated Parking Agreement, dated April 24, 1999, to amend and restate the existing Parking Agreement in its entirety to provide the City and the RDA with certain permanent parking facilities, as well as laundry, lavatory and showers, retail/office space and storage to be located upon the SSDI North parcel for use by the Miami Beach Marina Associates, Ltd., a Florida limited partnership for the benefit of the Miami Beach Marina and the public generally. In accordance with the Amended and Restated Parking Agreement, The Related Group, a Florida limited partnership, as successor developer of a portion of the parcel known as SSDI South, has delivered to the City and the RDA, two (2) leases executed by its duly authorized representative, dated as of March 14,2003, for said parking spaces, laundry, lavatory and showers, retail/office and storage facilities in the Murano Grande and ICON projects. The construction of the Murano Grande South Tower is nearing completion and is estimated to obtain a Temporary Certificate of Occupancy (TCO) in April 2003. Construction of the foundation for the ICON project will commence shortly thereafter. ANALYSIS: The aforestated Amended and Restated Parking Agreement survives the 1995 Settlement Agreement with Portofino and provides for the Agency to pay the capital costs, base rent payment and pro-rata share of operating expenses for the 142 parking spaces, laundry and bathroom facilities, trash room, and maintenance facilities, located in the first floor parking garage of the Murano Grande Project; and 206 parking spaces, retail/office and electric room, located in the first floor parking garage of the ICON Project. These projects are connected by the parking garage. City of Miami Beach Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 3 Although the lease for Murano Grande is for a total of 142 parking spaces, due to adjustments to the net parking spaces provided in the Yacht Club at Portofino (112 parking spaces vs. 115 parking spaces as reflected in lease) and the Murano (106 parking spaces vs. 103 parking spaces as provided in lease), the actual capital cost for Murano Grande will be for 137 spaces to reflect the adjustment for the overpayment of the 5 spaces in the Yacht Club at Portofino and Murano garages. Table 2 on page 5 of this memo reflects the actual spaces provided in each facility and the Murano Grande lease reflects the aforementioned adjustments. According to the Lease Agreement, the City! RDA is required to prepay "Base Rent" to Murano Two, LTD. For the Murano Grande Project and to Murano Three , LTD. for the ICON Project. Both Partnerships represent The Related Group. The Base Rent is defined as: (a) a "Purchase Price Component" defined as the $1,844,256 capital cost for the improvements within the Murano Grande and $2,585,375 capital cost for the improvements within ICON project, and (b) a single installment of base rent of$101 for the initial 1 01-year lease term, and will pay the proportionate share of operating expenses in advance, on a monthly basis, which share is estimated to be 31.9% and 38.6%forthe Murano Grande and ICON projects, respectively. Purchase Price Component The Amended and Restated Parking Agreement identifies a methodology to determine the purchase price component and the form of reimbursement to the Developer. Article 3, paragraph (b) of said Agreement states the following: "(b) the City shall reimburse Developer pursuant to the "purchase price" component of the base rent in amounts equal to the cost of building and delivering such facilities as follows: (i) 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; (ii) laundry, lavatory and shower facilities shall be paid for at Developer's actual cost; and (iii) the retail! office space shall be paid for at Developer'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)" It is important to note the City and Agency are obligated to the Marina Lessee via its Fourth Amendment to Marina Lease Agreement, Article 3.1.2.1 to provide the retail! office space improvements on SSDI - North similar to those existing at the Junior's Building as of April 15, 1998. The Administration recommends at this time to perform certain improvements to the retail! office space at this time. City of Miami Beach Memorandum, - Apri/9, 2003 Murano Two and Murano Three Leases Page 4 The Purchase Price Component for the Murano Grande and ICON projects are as presented in the following table: Table 1 Purchase Price Component Item Description Quantity Unit Unit Price Extension SSDI North - Murano Grande Permanent Parking Facilities (Net) 142 Ea. $10,9561 $1,555,752 Credit for parking spaces not delivered in 5 Ea. $10,9561 ($54,780) Yacht Club at Portofino and Murano Marina's Lavatory and Shower Facilities 1 AS $180,677 $180,677 Marina's Laundry Facilities 1 AS $38,194 $38,194 Marina's Trash Room 1 AS $44,318 $44,318 Marina's Maintenance Facilities 1 AS $80,095 $80,095 Total to be Appropriated for City Facilities at Murano Grande $1,844,256 SSDI North -ICON Permanent Parking Facilities (Net) 206 Ea. $11 ,1532 $2,297,518 Marina's Office Facilities 1 AS $262,790 $262,790 Marina's Electric Room 1 AS $25,067 $25,067 Total to be Appropriated for City Facilities at ICON $2,585,375 1 $10,000 purchase price per each permanent parking space adjusted by the increase in the Consumer Price Index for the period of March 1998(162.2) through October 2001 (177. 7). 2 $10,000 purchase price per each permanent parking space adjusted by the increase in the Consumer Price Index for the period of March 1998(162.2) through December 2002(180.9). The City and the Developer are obligated to provide for Marina parking facilities within the footprint of the SSDI North projects. These requirements are summarized in the Amended and Restated Parking Agreement and the Fourth Amendment to the Marina Lease. Essentially, the City is obligated to provide 715 parking spaces. This requirement can be reduced by the proportionate number of parking spaces required to deliver the City facilities, i.e. laundry, lavatory, maintenance and retail/office space. City of Miami Beach Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 5 Table 2 Summary of Parking Spaces Development Project Gross Parking Facilities Net Permanent Parking Facilities Core Parcel 115 115 Yacht Club at Portofino 112 112 Murano 106 106 Murano Grande Laundry, lavatory/shower facilities Storage area 1591 (6) (11 ) 142 Retail/ office facilities Storage area 2352 (19) (2) 206 ICON Net Permanent parking Facilities Gross Parking Facilities Gross Parking Facilities Required Surplus / (Deficit) 681 727 715 12 1 An additional ten (10)(triple tandem) parking spaces are provided by the Developer and not included in the City / RDA purchase price component. 2 An additional eight (8) parking spaces are provided by the Developer and not included in the City / RDA purchase price component. As stated in the Amended and Restated Parking Agreement, the City and Agency must pay in advance, on a monthly basis, its proportionate share of operating expenses for the City facilities located within the Murano Grande and ICON projects. The City's proportionate share is estimated to be 31.9% and 38.6% for the Murano Grande and ICON projects, respectively. Operating expenses for the Murano Grande and ICON projects are presented in the following table excluding real estate taxes that have not yet been estimated: Table 3 Common Area Maintenance Charges Common Area Maintenance (CAM) Charges Anticipated Common Area Maintenance (CAM) Charges City I RDA Proportionate Share Security and Maintenance (provided by the Marina Operator) N/A 31.9% N/A SSDI North - Murano Grande Insurance $31,410 $10,020 Proportionate CAM Charges for the Murano Grande $10,020 City of Miami Beach Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 6 Security and Maintenance (provided by the Marina Operator) N/A 38.6% N/A SSDI North -ICON Insurance $40,310 $15,560 Proportionate CAM Charges for the ICON $15,560 The City's proportionate share is based upon the ratio of the total spaces used for marina facilities I parking to total parking spaces available in the parking garage. This is summarized below: Table 4 City I RDA Proportionate Share Determination Development Spaces Murano Grande Total spaces in 4 levels of parking garage Total spaces used for City facilities I parking Percentage of City Facilities to total 467 149 31.9 ICON Total spaces in 5 levels of parking garage Total spaces used for City facilities I parking Percentage of City Facilities to total 588 227 38.6 The estimated amounts reflected in Table 3 - Common Area Maintenance Charges - in proportionate operating expenses are preliminary estimates provided by the lessor. This figure may be further reduced as a result of the City's Fourth Amendment to the Marina Lease Agreement, which provides for the City and the Marina Operator to enter into a garage management or operating agreement that further provides for the Marina lessee to be responsible for routine security, maintenance and own insurance for the operation of the Marina parking. In accordance with the South Pointe Redevelopment Plan, the ROA is to provide and maximize the parking facilities in the district. Therefore, it is recommended that the execution of the leases between the City of Miami Beach and the Miami Beach Redevelopment Agency with Murano Two, L TO. and Murano Three, L TO., respectively be authorized and that the appropriation from the South Pointe Redevelopment Tax Increment Fund of $1,844,256 for the payment of capital costs of 137 parking spaces, and other described facilities, the $101 representing the initial101-year term of the lease, and the $10,020 annual pro-rata share of operating expenses for the Murano Grande Project; in City of Miami Beach Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 7 conjunction with the $2,585,375 for the payment of capital costs of 206 parking spaces, and other described facilities, the $101 representing the initial 1 01-year term of the lease, and the $15,560 annual pro-rata share of operating expenses for the ICON Project be retified. CONCLUSION: The Mayor and City Commission of the City of Miami Beach, Florida, should adopt the Resolution. JMG:C~R T:\AGENDA\2003Iapr0903\rtla\MURAND-ICON.MEM.doc M o o N .,; ;: Q. 0( - o .. III .., .. 1;j .., Q. :::l !! .. o U .., S III E :::0 .. W C o tl '" .. 1ii c o ~ f Q. - C Gl E ~ '" 0( 1: Gl E Gl i VI o c l;: ~ o Q. Cl + IL " :J:: ~d Cl!~) IL W Q o ;c - :;; :E >< w "' <( a: U S 11 :5' ~ '" ~ ~ 8 o .. ;;; .~ a; ~ i J ~ o w .,,- Jl~ "0 E- ii~ WI- Jl .. q o I- ~ o '" C o i ;; .l! .. .. '" C '" 0 Ni 2 '1: S ~ ~! .. 1i E ;;i :<;w 'Iii o o ~ ...Ii :;n ~ i o ~ ~2l ~ 0. 0. '" "'.. "'0'" -.... '" -"'... ;; ",.c.c C:;c CD 0 0 ft.1! en z ~... , , ~ g'C 0 ~ ~~~~1- ~ .. Q"- 8 j .,; .... "!. .. .. g :i! o U .,; ~ .. o g .,; ~ .. o ... .... ;i '" .,; ~ j .. i u ~ " .5 .. o ... .... ;i '" .,; ~ '" .. i u ~ " C ... ....::; ~~~ '" '" .... '" '" .j ... "!. - ~ o o o ::;f- << ~ U g .. i u ~ " .5 ::; << U '" .... 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" RESOLUTION NO. 448-2003 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO TWO, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 142 PARKING SPACES, PERMANENT LAUNDRY, LAVATORY AND SHOWER FACILITIES AND A TRASH ROOM AND MAINTENANCE BUILDING, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE MURANO GRANDE PROJECT ON THE SOUTH PORTION OF THE SSDI-NORTH PARCEL; APPROPRIATING $1,844,256 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF 137 PARKING SPACES AND THE OTHER DESCRIBED FACILITIES; APPROPRIATING $101 FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND APPROPRIATING $10,020 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE; FURTHER AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO THREE, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 206 PARKING SPACES, PERMANENT OFFICE SPACE AND ELECTRIC ROOM, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE ICON PROJECT, ON THE NORTH PORTION OF THE SSDI-NORTH PARCEL; APPROPRIATING $2,585,375 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF THE CITY UNIT; APPROPRIATING $101 FOR THE SINGLE FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND APPROPRIATING $15,560 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE. WHEREAS, the Miami Beach Redevelopment Agency ("RDA"), entered into an agreement dated November 7, 1995 (the "Development Agreement"), with West Side Partners, Ltd., a Florida limited partnership ("West Side"), East Coastline Development Ltd., a Florida limited partnership, 404 Investments, Ltd., a Florida limited partnership, Azure Coast Development, Ltd., a Florida limited partnership, Beachwalk Development Corporation, a Florida corporation, Portofino Real Estate Fund, Ltd., a Florida limited partnership, St. Tropez Real Estate Fund, Ltd., a Florida limited partnership, and Sun & Fun, Inc., a Florida corporation (collectively the "Portofino Entities") and the City of Miami Beach, Florida (the "City"); and WHEREAS, pursuant to the OevelopmentAgreement, the City, ROA and West Side entered into a Parking Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed on the parcel known as SSOI South (the "Parking Agreement"); and the Parking Agreement survived the 1995 Settlement Agreement with Portofino; and WHEREAS, in conjunction with the settlement of the 1997 Litigation, the City, the ROA and Oeveloper entered into a Settlement Agreement; pursuant to the Settlement Agreement, the City, ROA and West Side entered into an Amended and Restated Parking Agreement, dated April 24, 1999, to amend and restate the existing Parking Agreement in its entirety to provide the City and the ROA with certain permanent parking facilities, as well as laundry, lavatory and showers, retail/office space and storage to be located upon the SSOI North parcel for use by the Miami Beach Marina Associates, Ltd., a Florida limited partnership for the benefit of the Miami Beach Marina and the public generally; and WHEREAS, in accordance with the Amended and Restated Parking Agreement, The Related Group, a Florida limited partnership, as successor developer of a portion of the parcel known as SSOI South, has delivered to the City and the ROA, two (2) leases executed by its duly authorized representative, dated as of March 14, 2003, for said parking spaces, laundry, lavatory and showers, retail/office and storage facilities in the Murano Grande and ICON projects; and WHEREAS, the Amended and Restated Parking Agreement survives the 1995 Settlement Agreement with Portofino and provides for the Agency to pay the capital costs, base rent payment and pro-rata share of operating expenses for the 142 parking spaces, laundry and bathroom facilities, trash room, and maintenance facilities, located in the first floor parking garage of the Murano Grande Project; and 206 parking spaces, retail/office and electric room, located in the first floor parking garage of the ICON Project; and these projects are connected by the parking garage; and WHEREAS, the City and Agency are obligated to the Marina Lessee via its Fou~ Amendment to Marina Lease Agreement, Article 3.1.2.1 to provide the retail/office space improvements on SSOI - North similar to those existing at the Junior's Building as of April 15,1998;and WHEREAS, as stated in the Amended and Restated Parking Agreement, the City and Agency must pay in advance, on a monthly basis, its proportionate share of operating expenses for the City facilities located within the Murano Grande and ICON projects. The City's proportionate share is estimated to be 31.9% and 38.6% for the Murano Grande and ICON projects, respectively. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, thatthe Chairman and Members hereby authorize the chairman and secretary to execute a lease agreement between Murano Two, Ltd., a Florida Limited Partnership, the City of Miami Beach, Florida, and the Miami Beach Redevelopment Agency for the City unit, which consists of 142 parking spaces, permanent laundry, lavatory and shower facilities and a trash room and maintenance building, located on the first floor of the parking garage of the Murano Grande project on the south portion of the SSDI-North parcel; appropriating $1,844,256 from the South Pointe Redevelopment Tax Increment fund for the payment of the capital cost of 137 parking spaces and the other described facilities; appropriating $101 for the single installment of base rent for the initial 1 01-year term of the lease; and appropriating $10,020 for the proportionate share of operating expenses for the first year as provided in the lease; further authorizing the Chairman and Secretary to execute a lease agreement between Murano Three, Ltd., a Florida Limited Partnership, the City of Miami Beach, Florida, and the Miami Beach Redevelopment Agency for the City unit, which consists of 206 parking spaces, permanent office space and electric room, located on the first floor of the parking garage of the ICON project, on the north portion of the SSDI-North parcel; appropriating $2,585,375 from the South Pointe Redevelopment Tax Increment Fund for the payment of the capital cost of the City unit; appropriating $101 for the single for the single installment of base rent for the initial 1 01-year term of the lease; and appropriating $15,560 for the proportionate share of operating expenses for the first year as provided in the lease. PASSED and ADOPTED this 9th day ,2003. ]Jt:J rM~ SECRETARY T:\AGENDA\2003\apr0903~da\MURANO.ICON.RES.doc' APPROVED I>S TO FORM & LANGUAGE & FOR EXECUTION J1 J I'1trl)ll pa~ '1-1-03 ~.D8 General Counsel~ CllY OF MIAMI BEACH COM\llISSION ITEM SUMMARY m Condensed Title: A Resolution authorizing the Chairman and Secretary to execute the leases between the City of Miami Beach and the Miami Beach Redevelopment Agency with Murano Two, LTD. and Murano Three, LTD., respectively be authorized and that the $1,877,124 for the payment of capital costs of 140 parking spaces, permanent laundry, lavatory and shower facilities and a trash room and maintenance building facilities, the $101 representing the initial 101-year term of the lease, and the $10,020 annual pro-rata share of operating expenses for the Murano Grande Project; in conjunction with the $2,585,375 for the payment of capital costs of 206 parking spaces, and permanent office/retail space and electric room, the $101 representing the initial 101-year term of the lease, and the $15,560 annual pro-rata share of operating expenses for the ICON Pro.ect be a ro riated from the South Pointe Redevelo ment Trust Fund. Issue: Pursuant to the Development Agreement, the City, RDA and West Side entered into a Parking Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed on the parcel known as SSDI South (the "Parking Agreement"). The Parking Agreement survived the 1995 Settlement Agreement with Portofino. Pursuant to the Settlement Agreement, the City, ROA and West Side entered into an Amended and Restated Parking Agreement, dated April 24, 1999, to amend and restate the existing Parking Agreement in its entirety to provide the City and the ROA with certain permanent parking facilities, as well as laundry, lavatory and showers, retail / office space and storage to be located upon the SSOI North parcel for use by the Miami Beach Marina Associates, Ltd., a Florida limited partnership for the benefit of the Miami Beach Marina and the public generally. The Amended and Restated Parking Agreement survives the 1995 Settlement Agreement with Portofino and provides for the Agency to pay the capital costs, base rent payment and pro-rata share of operating expenses for the 145 parking spaces, laundry and bathroom facilities, trash room, and maintenance facilities, located in the first floor parking garage of the Murano Grande Project; and 206 parking spaces, retail 1 office and electric room, located in the first floor parking garage of the ICON Pro.ect. These ro.ects are connected b the arkin ara e. Item Summa IRecommendation: In accordance with the South Pointe Redevelopment Plan, the RDA is to provide and maximize the parking facilities in the district. Therefore, it is recommended that the execution of the leases between the City of Miami Beach and the Miami Beach Redevelopment Agency with Murano Two, LTD. and Murano Three, LTD., respectively be authorized and that the $1,877,124 for the payment of capital costs of 140 parking spaces, and other described facilities, the $101 representing the initial 1 01-year term of the lease, and the $10,020 annual pro-rata share of operating expenses for the Murano Grande Project; in conjunction with the $2,585,375 for the payment of capital costs of 206 parking spaces, and other described facilities, the $101 representing the initial 1 01-year term of the lease, and the $15,560 annual pro-rata share of operating ex enses for the ICON Pro.ect be a ro riated from the South Pointe Redevelo ment Trust Fund. Advisory Board Recommendation: I NIA Financial Information: 1 2 3 4 Total Amount $1,887,245 $2,601,036 Account South Pointe RDA TIF South Pointe ROA TIF Approved $4,488,281 Ci Clerk's Office le islative Trackin Christina M. Cuervo/Alexandra Rolandelli n-Dffs: Department Director City Manager T:\AGENDAI2003Iapr0903IrdaIMURANO-ICON.5UM.dOc Agenda 'tern Date 8A l(-f-03> CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 WNW.miamibeachfl.gov m To: From: Subject: REDEVELOPMENT AGENCY MEMORANDUM Chairman and Members of the Miami Beach Redevelopment Agency Date: April 9, 2003 Jorge M. Gonzalez Executive Director ).. i,V'-7(' ( L A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO TWO, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 145 PARKING SPACES, PERMANENT LAUNDRY, LAVATORY AND SHOWER FACILITIES AND A TRASH ROOM AND MAINTENANCE BUILDING, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE MURANO GRANDE PROJECT ON THE SOUTH PORTION OF THE SSDI- NORTH PARCEL; APPROPRIATING $1,877,124 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF 140 PARKING SPACES AND THE OTHER DESCRIBED FACILITIES; APPROPRIATING $101 FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND APPROPRIATING $10,020 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE; FURTHER AUTHORIZING THE CHAIRMAN AND SECRETARY TO EXECUTE A LEASE AGREEMENT BETWEEN MURANO THREE, LTD., A FLORIDA LIMITED PARTNERSHIP, THE CITY OF MIAMI BEACH, FLORIDA, AND THE MIAMI BEACH REDEVELOPMENT AGENCY FOR THE CITY UNIT, WHICH CONSISTS OF 206 PARKING SPACES, PERMANENT OFFICE SPACE AND ELECTRIC ROOM, LOCATED ON THE FIRST FLOOR OF THE PARKING GARAGE OF THE ICON PROJECT, ON THE NORTH PORTION OF THE SSDI-NORTH PARCEL; APPROPRIATING $2,585,375 FROM THE SOUTH POINTE REDEVELOPMENT TAX INCREMENT FUND FOR THE PAYMENT OF THE CAPITAL COST OF THE CITY UNIT; APPROPRIATING $101 FOR THE SINGLE FOR THE SINGLE INSTALLMENT OF BASE RENT FOR THE INITIAL 101-YEAR TERM OF THE LEASE; AND APPROPRIATING $15,560 FOR THE PROPORTIONATE SHARE OF OPERATING EXPENSES FOR THE FIRST YEAR AS PROVIDED IN THE LEASE. RECOMMENDATION: Adopt the Resolution. RDA Memorandum, - Apri/9, 2003 Murano Two and Murano Three Leases Page 2 BACKGROUND: The Miami Beach Redevelopment Agency ("RDA"), entered into an agreement dated November 7, 1995 (the "Development Agreement"), with West Side Partners, Ltd., a Florida limited partnership ("West Side"), East Coastline Development Ltd., a Florida limited partnership, 404 Investments, Ltd., a Florida limited partnership, Azure Coast Development, Ltd., a Florida limited partnership, Beachwalk Development Corporation, a Florida corporation, Portofino Real Estate Fund, Ltd., a Florida limited partnership, St. Tropez Real Estate Fund, Ltd., a Florida limited partnership, and Sun & Fun, Inc., a Florida corporation (collectively the "Portofino Entities") and the City of Miami Beach, Florida (the "City"). Pursuant to the Development Agreement, the City, RDA and West Side entered into a Parking Agreement, dated as of January 10, 1996, pursuant to which West Side would provide parking spaces, laundry and bathroom facilities for the Miami Beach Marina in a building to be constructed on the parcel known as SSDI South (the "Parking Agreement"). The Parking Agreement survived the 1995 Settlement Agreement with Portofino. In conjunction with the settlement of the 1997 Litigation, the City, the RDA and Developer entered into a Settlement Agreement. Pursuant to the Settlement Agreement, the City, RDA and West Side entered into an Amended and Restated Parking Agreement, dated April 24, 1999, to amend and restate the existing Parking Agreement in its entirety to provide the City and the RDA with certain permanent parking facilities, as well as laundry, lavatory and showers, retail/office space and storage to be located upon the SSDI North parcel for use by the Miami Beach Marina Associates, Ltd., a Florida limited partnership for the benefit of the Miami Beach Marina and the public generally. In accordance with the Amended and Restated Parking Agreement, The Related Group, a Florida limited partnership, as successor developer of a portion of the parcel known as SSDI South, has delivered to the City and the RDA, two (2) leases executed by its duly authorized representative, dated as of March 14, 2003, for said parking spaces, laundry, lavatory and showers, retail/office and storage facilities in the Murano Grande and ICON projects. The construction of the Murano Grande South Tower is nearing completion and is estimated to obtain a Temporary Certificate of Occupancy (TCO) in April 2003. Construction of the foundation for the ICON project will commence shortly thereafter. ANALYSIS: The aforestated Amended and Restated Parking Agreement survives the 1995 Settlement Agreement with Portofino and provides for the Agency to pay the capital costs, base rent payment and pro-rata share of operating expenses forthe 145 parking spaces, laundry and bathroom facilities, trash room, and maintenance facilities, located in the first floor parking garage of the Murano Grande Project; and 206 parking spaces, retail/office and electric room, located in the first floor parking garage of the ICON Project. These projects are connected by the parking garage. RDA Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 3 Although the lease for Murano Grande is for a total of 145 parking spaces, due to adjustments to the net parking spaces provided in the Yacht Club at Portofino (112 parking spaces vs. 115 parking spaces as reflected in lease) and the Murano (106 parking spaces vs. 103 parking spaces as provided in lease), the actual capital cost for Murano Grande will be for 140 spaces to reflect the adjustment for the overpayment of the 5 spaces in the Yacht Club at Portofino and Murano garages. Table 2 on page 5 of this memo reflects the actual spaces provided in each facility and the Murano Grande lease reflects the aforementioned adjustments. According to the Lease Agreement, the City! RDA is required to prepay "Base Rent" to Murano Two, LTD. For the Murano Grande Project and to Murano Three , LTD. for the ICON Project. Both Partnerships represent The Related Group. The Base Rent is defined as: (a) a "Purchase Price Component" defined as the $1,877,124 capital cost for the improvements within the Murano Grande and $2,585,375 capital cost for the improvements within ICON project, and (b) a single installment of base rent of$101 for the initial101-year lease term, and will pay the proportionate share of operating expenses in advance, on a monthly basis, which share is estimated to be 31.9% and 38.6%forthe Murano Grande and ICON projects, respectively. Purchase Price Component The Amended and Restated Parking Agreement identifies a methodology to determine the purchase price component and the form of reimbursement to the Developer. Article 3, paragraph (b) of said Agreement states the following: "(b) the City shall reimburse Developer pursuant to the "purchase price" component of the base rent in amounts equal to the cost of building and delivering such facilities as follows: (i) 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; (ii) laundry, lavatory and shower facilities shall be paid for at Developer's actual cost; and (iii) the retail! office space shall be paid for at Developer'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)" It is important to note the City and Agency are obligated to the Marina Lessee via its Fourth Amendment to Marina Lease Agreement, Article 3.1.2.1 to provide the retail! office space improvements on SSDI - North similar to those existing at the Junior's Building as of April 15, 1998. The Administration recommends at this time to perform certain improvements to the retail! office space at this time. RDA Memorandum, - Apri/9, 2003 Murano Two and Murano Three Leases Page 4 The Purchase Price Component for the Murano Grande and ICON projects are as presented in the following table: Table 1 Purchase Price Component Item Description Quantity Unit Unit Price Extension SSDI North - Murano Grande Permanent Parking Facilities (Net) 145 Ea. $10,9561 $1,588,620 Credit for parking spaces not delivered in 5 Ea. $10,9561 ($54,780) Yacht Club at Portofino and Murano Marina's Lavatory and Shower Facilities 1 AS $180,677 $180,677 Marina's Laundry Facilities 1 AS $38,194 $38,194 Marina's Trash Room 1 AS $44,318 $44,318 Marina's Maintenance Facilities 1 AS $80,095 $80,095 Total to be Appropriated for City Facilities at Murano Grande $1,877,124 SSDI North -ICON Permanent Parking Facilities (Net) 206 Ea. $11,1532 $2,297,518 Marina's Office Facilities 1 AS $262,790 $262,790 Marina's Electric Room 1 AS $25,067 $25,067 Total to be Appropriated for City Facilities at ICON $2,585,375 1 $10,000 purchase price per each permanent parking space adjusted by the increase in the Consumer Price Index for the period of March 1998(162.2) through October 2001 (177.7). 2 $10,000 purchase price per each permanent parking space adjusted by the increase in the Consumer Price Index for the period of March 1998(162.2) through December 2002(180.9). The City and the Developer are obligated to provide for Marina parking facilities within the footprint of the SSDI North projects. These requirements are summarized in the Amended and Restated Parking Agreement and the Fourth Amendment to the Marina Lease. Essentially, the City is obligated to provide 715 parking spaces. This requirement can be reduced by the proportionate number of parking spaces required to deliver the City facilities, Le. laundry, lavatory, maintenance and retail! office space. RDA Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 5 Table 2 Summary of Parking Spaces Development Project Gross Parking Facilities Net Permanent Parking Facilities Core Parcel 115 115 Yacht Club at Portofino 112 112 Murano 106 106 Murano Grande Laundry, lavatory/shower facilities Storage area 162 (6) (11 ) 145 Retail/office facilities Storage area 2351 (19) (2) 206 ICON Net Permanent parking Facilities Gross Parking Facilities Gross Parking Facilities Required Surplus / Deficit 684 730 715 15 1 An additional eight (8) parking spaces are provided by the Developer and not included in the City / RDA purchase price component. As stated in the Amended and Restated Parking Agreement, the City and Agency must pay in advance, on a monthly basis, its proportionate share of operating expenses for the City facilities located within the Murano Grande and ICON projects. The City's proportionate share is estimated to be 31.9% and 38.6% for the Murano Grande and ICON projects, respectively. Operating expenses for the Murano Grande and ICON projects are presented in the following table excluding real estate taxes that have not yet been estimated: Table 3 Common Area Maintenance Charges Common Area Maintenance (CAM) Charges Anticipated Common Area Maintenance (CAM) Charges City I RDA Proportionate Share SSDI North - Murano Grande 31.9% Security and Maintenance (provided by the Marina Operator) N/A N/A Insurance $31,410 $10,020 Proportionate CAM Charges for the Murano Grande $10,020 ROA Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 6 SSDI North -ICON 38.6% Security and Maintenance (provided by the Marina Operator) N/A N/A Insurance $40,310 $15,560 Proportionate CAM Charges for the ICON $15,560 The City's proportionate share is based upon the ratio of the total spaces used for marina facilities I parking to total parking spaces available in the parking garage. This is summarized below: Table 4 City I RDA Proportionate Share Determination Development Spaces Murano Grande Total spaces in 4 levels of parking garage Total spaces used for City facilities I parking Percentage of City Facilities to total 467 149 31.9 ICON Total spaces in 5 levels of parking garage Total spaces used for City facilities I parking Percentage of City Facilities to total 588 227 38.6 The estimated amounts reflected in Table 3 - Common Area Maintenance Charges - in proportionate operating expenses are preliminary estimates provided by the lessor. This figure may be further reduced as a result of the City's Fourth Amendment to the Marina Lease Agreement, which provides for the City and the Marina Operator to enter into a garage management or operating agreement that further provides for the Marina lessee to be responsible for routine security, maintenance and own insurance for the operation ofthe Marina parking. In accordance with the South Pointe Redevelopment Plan, the ROA is to provide and maximize the parking facilities in the district. Therefore, it is recommended that the execution of the leases between the City of Miami Beach and the Miami Beach Redevelopment Agency with Murano Two, L TO. and Murano Three, L TO., respectively be authorized and that the $1,877,124 for the payment of capital costs of 140 parking spaces, and other described facilities. the $101 representing the initial 1 01-year term of the lease, and the $10,020 annual pro-rata share of operating expenses for the Murano Grande Project; in conjunction with the $2,585.375 for the payment of capital costs of 206 parking spaces, and other described facilities. the $101 representing the initial 1 01-year term ofthe RDA Memorandum, - April 9, 2003 Murano Two and Murano Three Leases Page 7 lease, and the $15,560 annual pro-rata share of operating expenses for the ICON Project be appropriated from the South Pointe Redevelopment Trust Fund. CONCLUSION: The Chairman and Members of the Miami Beach Redevelopment Agency should adopt the Resolution. 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