Resolution 2018-30566 RESOLUTION NO. 2018-30566
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING THE SETTLEMENT
BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND THE MURANO
GRANDE AT PORTOFINO ASSOCIATION, INC., THE ICON
CONDOMINIUM ASSOCIATION, INC., AND THE MURANO GRANDE AT
PORTOFINO MASTER ASSOCIATION, INC., AND AUTHORIZING THE
CITY MANGER AND CITY ATTORNEY TO TAKE THE NECESSARY
AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF;
AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE ANY DOCUMENTS AND/OR AGREEMENTS, AS REQUIRED,
TO EFFECTUATE THE TERMS OF THE SETTLEMENT; AND FURTHER
APPROVING AND AUTHORIZING THE MAYOR AND THE CITY CLERK
TO EXECUTE, AS PART OF SUCH SETTLEMENT, A FIRST
AMENDMENT TO THE LEASE AGREEMENT AMONG THE CITY OF
MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY, THE
MURANO GRANDE AT PORTOFINO MASTER ASSOCIATION, INC.,
AND MURANO GRANDE AT PORTOFINO CONDOMINIUM
ASSOCIATION, INC.; AND FURTHER APPROVING AND AUTHORIZING
THE MAYOR AND THE CITY CLERK TO EXECUTE, AS PART OF
SUCH SETTLEMENT, A FIRST AMENDMENT TO THE LEASE
AGREEMENT AMONG THE CITY OF MIAMI BEACH, THE MIAMI
BEACH REDEVELOPMENT AGENCY, THE MURANO GRANDE AT
PORTOFINO MASTER ASSOCIATION, INC., AND THE ICON
CONDOMINIUM ASSOCIATION, INC.
WHEREAS, the Murano Grande at Portofino Project was developed by Murano
Two, Ltd., as evidenced in the Declaration of Covenants, Restrictions and Easements
for Murano Grande at Portofino Project, recorded in Official Records Book 21134 at
Page 3878 of the Public Records of Miami-Dade County, Florida ("Master Covenants");
and
WHEREAS, the Murano Grande at Portofino is a condominium located at 400
Alton Road, Miami Beach, FL 33139, developed by Murano Two, Ltd., the developer of
the Murano Grande condominium as evidenced in the Declaration of Murano Grande at
Portofino, a condominium, recorded in Official Records Book 21134 at Page 3930-4041
of the Public Records of Miami-Dade County, Florida ("Murano Declaration of
Condominium"); and
WHEREAS, on March 31, 2003, the Murano Two, Ltd. formed the Murano
Grande at Portofino Condominium Association, Inc. (the "Murano Grande") pursuant to
the Murano Declaration of Condominium, and formed the Murano Grande at Portofino
Master Association, Inc. (the "Master Association") pursuant to the Master Covenants;
and
WHEREAS, the Master Association owns and is charged with, among other
things, managing and maintaining the "Common Properties," as defined in Paragraph
1.10) of the Master Covenants; and
WHEREAS, on or about April 9, 2003, Murano Two, Ltd., entered into a 101-
year lease agreement with Tenant (the "Murano Lease") for the leasing of parking
spaces, laundry, lavatory and shower facilities, a trash room and a maintenance room,
all located within the "City Unit", as set forth in the Murano Lease; and
WHEREAS, the Icon South Beach is a condominium located at 450 Alton Road,
Miami Beach, FL 33139, developed by Murano Three, Ltd., as evidenced in the
Declaration of Icon, a condominium recorded in Official Records Book 22824 at Page
4451 of the Public Records of Miami-Dade County, Florida ("Icon Declaration of
Condominium"); and
WHEREAS, on or about April 9, 2003, Murano Three, Ltd., entered into a 101-
year lease agreement with Tenant ("Icon Lease") for the leasing of parking spaces,
office space and an electric room all located within the "City Unit", as set forth in the
Icon Lease; and
WHEREAS, on November 16, 2004, the Murano Three, Ltd. formed the Icon
Condominium Association, Inc. (the "Icon") pursuant to the Icon Declaration of
Condominium; and
WHEREAS, the Murano Grande and Icon, joined by Master Association, filed
separate lawsuits for damages and eviction under the Icon Lease and Murano Lease
against the City, the RDA and the Marina, in consolidated Case Nos. 2015-11069 CA43
and 2014-023217 CA43, in the Eleventh Judicial Circuit in and for Miami-Dade County
(collectively the "Lawsuit"); and
WHEREAS, the City and the RDA filed a third-party complaint/counterclaim in
the Lawsuit seeking declaratory action pursuant to the Declaratory Judgment Act,
86.111, Fla. Stat. seeking to determine, inter alfa, that pursuant to the Master
Covenants, the Master Association is the City and RDA's "landlord" under both the
Murano Lease and the Icon Lease; and
WHEREAS, on or about April 27, 2017, the Court entered an Order on The City
Of Miami Beach and Miami Beach Redevelopment Agency's Amended Motion for
Summary Judgment as to the Counterclaim/Third Party Complaint for Declaratory
Relief, finding that "the Master Association is the sole Landlord under the [Murano
Lease)" and "the Master Association is the sole Landlord under the Icon Lease."; and
ftlftlitlf
WHEREAS the Murano Grande, Icon, and Master Association appealed the
Court's April 27, 2017 Order to the Third District Court of Appeals, Murano Grande at
Portofino Condominium Association, Inc., et at, v. The City of Miami Beach et. al.,
Appellate Case No: 3d17-2356 (the "Appeal"). Through the Appeal, the Associations
also appealed the Courts Order on Tenant's Motion to Dismiss First Amended
Complaint, rendered on October 5, 2017, as amended on October 13, 2017; the Court's
Order Denying Associations' Amended Motion for Summary Judgment rendered on
October 20, 2016; and Order Denying Associations' Motion for Rehearing or Alternative
Motion for Entry of Corrected Order and Clarification, rendered on May 30, 2017; and
WHEREAS, on August 13, 2018, the Mayor and City Commission held an
• Executive Session to discuss a settlement agreement regarding pending litigation with
the Murano Grande at Portofino Association, Inc., the Icon Condominium Association,
Inc. and the Murano Grande at Portofino Master Association, Inc.; and
WHEREAS, the Mayor and City Commission directed the City Attorney's Office
to prepare the settlement agreement and lease amendments in accordance with the
direction provided at the Executive Session; and
WHEREAS, the Administration recommends in favor of approving the settlement
agreement and executing the lease amendments pursuant to the direction of the Mayor
and City Commission.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve the settlement between the City of Miami Beach, Florida
and the Murano Grande at Portofino Association, Inc., the Icon Condominium
Association, Inc. and the Murano Grande at Portofino Master Association, Inc., and
authorize the City Manager and City Attorney to take the necessary and appropriate
steps for the implementation thereof; and further authorize the Mayor and City Clerk to
execute any documents and/or agreements, as required, to effectuate the terms of the
settlement; and further approving and authorizing the Mayor and City Clerk to execute,
as part of such settlement, a first amendment to the lease agreement among the City of
Miami Beach, the Miami Beach Redevelopment Agency, the Murano Grande at
Portofino Master Association, Inc., and the Murano Grande at Portofino Association,
Inc.; and further approving and authorizing the Mayor and City Clerk to execute, as part
of such settlement, a first amendment to the lease agreement among the City of Miami
Beach, the Miami Beach Redevelopment Agency, the Murano Grande at Portofino
Master Association, Inc., and the Icon Association, Inc./
PASSED and ADOPTED THIS I7 day of October 2018.
APPROVED AS TO
FORM&LANGUAGE
•
&FOR EXECUTION
ATTEST:
f=
City AttorneNd Uat�, Aft
Y-+ ,fin elr, Ma
16630 Y ItC 'Fn 0R ';
D
E.
Rafae Granado, City lerk
O /.-
7�r; 2 � "
Resolutions - R7 I
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 17, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA,APPROVING THE SETTLEMENT BETWEEN THE CITY
OF MIAMI BEACH, FLORIDA AND THE MURANO GRANDE AT PORTOFINO
ASSOCIATION, INC., THE ICON CONDOMINIUM ASSOCIATION, INC., AND THE
MURANO GRANDE AT PORTOFINO MASTER ASSOCIATION, INC., AND
AUTHORIZING THE CITY MANGER AND CITY ATTORNEY TO TAKE THE
NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION
THEREOF; AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE ANY DOCUMENTS AND/OR AGREEMENTS, AS REQUIRED, TO
EFFECTUATE THE TERMS OF THE SETTLEMENT; AND FURTHER
APPROVING AND AUTHORIZING THE MAYOR AND THE CITY CLERK TO
EXECUTE, AS PART OF SUCH SETTLEMENT, A FIRST AMENDMENT TO THE
LEASE AGREEMENT AMONG THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY, THE MURANO GRANDE AT PORTOFINO MASTER
ASSOCIATION, INC., AND MURANO GRANDE AT PORTOFINO CONDOMINIUM
ASSOCIATION, INC.; AND FURTHER APPROVING AND AUTHORIZING THE
MAYOR AND THE CITY CLERK TO EXECUTE, AS PART OF SUCH
SETTLEMENT, A FIRST AMENDMENT TO THE LEASE AGREEMENT AMONG
THE CITY OF MIAMI BEACH, THE MIAMI BEACH REDEVELOPMENT AGENCY,
THE MURANO GRANDE AT PORTOFINO MASTER ASSOCIATION, INC., AND
THE ICON CONDOMINIUM ASSOCIATION, INC. JOINT REDEVELOPMENT
AGENCY AND CITY COMMISSION
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On August 13, 2018, the Mayor and City Commission held an Executive Session to discuss a
settlement agreement regarding pending litigation with the Murano Grande at Portofino Association,
Inc., the Icon Condominium Association, Inc. and the Murano Grande at Portofino Master
Association, Inc. The Mayor and City Commission directed the City Attorney's Office to prepare the
settlement agreement and lease amendments in accordance with the direction provided at the
Executive Session.
CONCLUSION
The Administration recommends in favor of approving the settlement agreement and executing the
lease amendments pursuant to the direction of the Mayor and City Commission. •
Page 950 of 1637
Laic islative Tracking
Tourism, Culture and Economic Development
ATTACHMENTS:
Description
❑ Resolution
Page 951 of 1637