RESOLUTION 87-18966 RESOLUTION NO. 87-18966
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA,
DECLARING THE CITY OWNED PROPERTY
SURPLUS WHICH IS LOCATED ON THE
NORTHWEST AND SOUTHWEST CORNERS OF 36TH
STREET AND COL L I NS AVENUE, MIAMI BEACH,
FLORIDA, NAMELY LOTS 12 , 13 AND 14 OF
BLOCK 24, AND LOTS 10, 11 AND 15 OF
BLOCK 26, ED MAP, OCEANFRONT
PROPERTY, MIAMI BEACH IMPROVEMENT
COMPANY SUBDIVISION, PLAT BOOK 5, PAGES
7 AND 8, AND AUTHORIZING THE CITY
MANAGER TO SOLICIT FOR APPRAISAL
SERVICES AND TO PREPARE AND ISSUE A
REQUEST FOR PROPOSALS FOR THE
RESTORATION AND/OR RE-DEVELOPMENT OF
SAID PROPERTY.
WHEREAS, the City Commission of the City of Miami Beach has
decided that restoration and/or redevelopment of the property
located at 36th Street and Collins Avenue would be conducive to
encouraging the public purpose of further development within the
Collins Avenue Corridor ; and
WHEREAS, the City has no plans now or in the future to
develop said property for its own use ; and
WHEREAS, the City is desirous of soliciting for appraisal
services to determine the fair market value of the property ; and
WHEREAS, the City is desirous of preparing and issuing a
request for proposals for the use of said property ;
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY CONMI S S I ON OF
THE CITY OF MIAMI BEACH, FLORIDA, that the City owned property
located on the northwest and southwest corners of 36th Street and
Collins Avenue, Miami Beach , Florida, namely Lots 12 , 13 and 14 of
Block 24 , and Lots 10 , 11 and 15 of Block 26 , Amended Map,
Oceanfront Property, Miami Beach Improvement Company Subdivision,
according to the Plat thereof recorded in Plat Book 5 , at Pages 7
and 8 of the Public Records of Dade County, Florida, declared as
surplus property, and that the City Manager be authorized to
solicit for appraisal services and to issue a request for
proposals for the sale and redevelopment of said property .
PASSED AND ADOPTED this _ day of _a, : bed' , iv .
ATTEST: I MA 'SR
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CITY CLERK
APPROVED AS TO FORM:
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LEGAL DEPARTMENT
DATED: ef ‘ tS7
PNB/WH H/HONI/ses If 18
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--MTBE, FLORIDA 3 3 1 3 9
*•ONCORP ORATED -" V A CA TIONL A NIS U. S. A. "
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OFFICE OF THE CITY MANAGER CITY HALL
ROB W.PARKINS 1700 CONVENTION CENTER DRIVE
CITY MANAGER TELEPHONE: 673-7010
COMMISSIONsr
MEMORANDUM NO.D
1 : _
DATE: September 2, 1987
TO: Mayor Alex Daoud and
Members of the Ci• ommissi•
FROM: Rob W. Parki 411,
City Manager 4,4/101
•
SUBJECT: OPERATION RE-ENTRY "ROPERTY - 3602 COLLINS AVENUE
DECLARE SURPLUS, AUTHORIZE SOLICITATION FOR APPRAISAL
SERVICES, AUTHORIZE REQUEST FOR PROPOSALS FOR
RESTORATION AND/OR RE-DEVELOPMENT OF THE SITE
BACKGROUND:
1. Site Description/Previous Use. The subject site contains two (2) separate
parcels located on the west side of Collins Avenue at its intersection with 36th
Street. The first parcel, formerly known as the Drexel School, housed the
Operation Re-Entry Program at 3602 Collins Avenue. It contains .32 acres, and
has 3 primary structures. It was purchased in 1975 for $206,250 with funds raised
through a bond sale.
The second parcel was originally part of the Shoremede Hotel property and
known as the Shoremede Annex (Dayton Apartments) and is located at 3516-20
Collins Avenue. Both the hotel and annex properties were purchased in 1966 for
$895,000.00. The Shoremede property was later converted into a City
beachfront park while the Annex property on the southwest side of Collins
Avenue has been used as an unimproved parking lot.
In 1981, the Planning Board, at the request of the City Commission, considered
alternative uses for the combined site. The Board recommended that a tourist
and visitor information center and accessory tourist related uses be established
and operated by the Visitor and Convention Authority. However, that use was
not developed and from 1983 through 1984 one of the buildings on the Operation
Re-Entry property was operated by the Miami Beach Jaycees of Florida, Inc. for
civic and community use.
Among the other uses considered for the three-building facility was as office
space for the Metered Parking Division. This relocation was considered not to be
cost effective in September of 1983, when the immediately visible renovations
were estimated to total $174,694.00. Not considered in that estimate were
necessary improvements to the plumbing and electrical systems.
In addition, use of one of the buildings on the Re-Entry site was considered as a
residential facility for battered women. The Building Maintenance Division
estimated necessary repairs in June of 1986 to total $66,500.00, without
considering any plumbing or electrical repairs. Those costs have been
determined not to be cost effective in view of the substantial renovations
necessary.
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AGENDA (e#R ell 1)
—1— ITEM
DATE 9- 2- 9-7
2. Purchase Agreement Restrictions. Purchase of the Operation Re-Entry site was
made possible through proceeds from sale of Public Improvement Bonds (Series
of 1974 Community Facility Bonds dated March 1, 1974) for $206,250.00. The
bond question before the public stated that proceeds would be used for a public
purpose involving mental health, family and/or social services. On July 21, 1981,
the City Attorney opined that the facility may be used for other public purposes
involving similar services without violating the terms of the Bond agreements.
More recently, the City Attorney issued an opinion that the property may be
sold, provided that proceeds from the sale are first used to reduce the bond debt
incurred for its purchase. (Copy of City Attorney's opinion Number 87-12, dated
May 11, 1987 attached).
It appears the Annex property was purchased with parking bond funds, which are
no longer outstanding.
3. Current Use. Presently, the Operation Re-Entry Building property remains
vacant while the lot to the south is under the control of the Metered Parking
Division. The unimproved parking lot does not have meters and is only partially
paved. If the lot is used for parking purposes, it requires repairing and
landscaping according to the requirements outlined in the City's Zoning
Ordinance. Both properties are severly underutilized and are in a state of
disrepair and lack an aestheticly pleasing appearance.
4. Surrounding Land Uses and Character of the Neighborhood. The site is
centrally located within the Collins Avenue Corridor. There are hotels located
to the east along the Oceanfront and apartments and condominiums to the west
toward Indian Creek Waterway. The beachfront promenade, the 36th Street
Beach, and Indian Creek Waterway are the prime recreation amenities in the
area.
The neighborhood is characterized with mid-rise buildings generally constructed
in the 1930's to 1950's. The neighborhood is considered as a prime family tourist
destination point and has historically catered to the needs of this market.
Numerous buildings are in need of exterior renovation in order to restore the
area.
5. Zoning. Adjacent zoning to the Operation Re-Entry property is RM-100,
Multiple Family Medium Density District. This designation anticipates such land
use as hotels and apartments, accommodating both long term residents and
tourists.
Municipally owned property is zoned Municipal Use (MU). When property zoned
MU is sold, the property acquires the zoning of adjacent land use, or in this case,
RM-100.
ADMINISTRATION RECOMMENDATION:
The City Manager recommends that the City Commission take the following actions,
as necessary steps, to ensure the best redevelopment use of the subject property:
1. Declare parcels to be surplus property.
2. Authorize the City Manager to solicit for appraisal services to determine
the fair market value of the City-owned property; and
3. Authorize the City Manager to prepare and issue a Request for Proposals
(RFP) for:
a. Restoration of the City-owned facilities preserving the
Mediterranean architectural characteristics; or
b. Demolition of the existing structures and construction of
facilities compatible with surrounding land use and zoning
limitations.
RWP/WHH/HCM/ses #18
Attachment: 4) City Attorney's Opinion # 87-12
Dated May 11, 1987
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CITY OF MBEACH
•
, ..
TO: Rob W. Parkins CAO- 87-12
City Manager
FROM: Arnold M. Weiner04144)
City Attorney
DATE: May 11, 1987
RE: Sale of City Owned Properties at 36th Street & Collins
Avenue for Development and/or Restoration
This opinion is in response to Request for Legal Opinion No.
3-3/87 dated February 13, 1987 .
Issue:
Whether there are any legal impediments to the sale of the
City owned properties located on the northwest corner ( 3 lots )
and the southwest corner ( 3 lots ) of 36th Street and Collins
Avenue (formerly known as the Operation Re-Entry Property and the
Shoremeade Annex) .
Answer :
No, the properties can be sold without restriction, but
there are restrictions on the use of the funds from the sale of
the Operation Re-Entry Property.
Documents Relied Upon:
Deeds conveying title to the properties in question to the
City; Commission Minutes of September 9 , 1966 ; Resolutions
authorizing appropriations on August 3 , 1966 and October 10,
1966; Resolution Nos. 74-14263 and 83-17350 relating to the
$250 , 000 G .O. "1974 Community Facility Bonds" ; 1984 Parking
Revenue Bond Documents; CMB Charter Sec. 6; F.S. Chapter 166 .
Statement of Facts:
The Purchasing and Property Management Department is
preparing an RFP (#72-86) for sale of the City owned properties
located on the northwest and southwest corners of 36th Street and
1
16
Collins Avenue . The northwest corner property (formerlythe
Drexel School 's property) waspurchased
P P Y� by the City i n 19?5 for
$206 , 250 from 1974 Community Facility Bond funds, which bonds
remain outstanding. The Drexel School 's property became the site
for Operation Re-Entry and, in 1983, the property began to be
Jaycees ,used by the Miami Beach
Inc.In c. The buildings are now
unoccupied. The property on the southwest corner was purchased
by the City in 1966 as a part of the Shoremeade acquisitionuisition(which included property on the easi side of Collins Avenue
for a
total price of $895,062, for both east and west parcels) and was
purchased from Parking Bond funds which, we are advised bythe
Finance Director, are no longer
h g outstanding. Mr. Harrison, the
Purchasing as i ng and Property Management Director, advises that the
southeast corner property is an unimproved parking lot which has
been used as a parking facility for the Operation Re-Entryand
City' s Metered Parking
Jaycees site, and is not a part of the
system.
Discussion:
(1) The Title
None of the deeds conveying title to the City contain
any restriction or reservation limiting the use to which the
properties maybe put . A review of the title policy on the
Drexel School site does not show any reservation or restriction
in the chain of title . A review of the abstract on the
Shoremeade Annex ( southwest corner ) does not not show any
restriction in the chain . There is, therefore,
no legal
impediment
in the title to the sale of the properties.
( 2) Statutory Power
The City clearly has the power pursuant to Sec. 2(b) ,
Art. VIII of the State Constitution, the City Charter, Sec. 6 ,
and Florida Statutes, Chapter 166, to sell City ownedro ert .
There is, therefore, no constitutional pP y
or statutory impediment to
the sale of the property.
(3) Bond Fund Impact
(a) Northwest Property (old Drexel School)
This property was purchased with the proceeds of
the "1974 Community Facilities Bonds. " These G .O. bonds had
their purpose stated in Resolution No. 73-14175 as
developing and constructing" "acquiring,an "Operation
pe anon Re-Entry Building" .
The purpose was later broadened in Resolution No. 83-17350 to
provide for a facility "for governmental , civic, educational ,
scientific, cultural, and charitable organizations, includingthe
City of Miami Beach, to enrich the lives
of the citizens and
visitors to the City of Miami Beach. �� Thereafter , thero ert
P P Y
2
1`7
was used for the Miami Beach Jaycees, Inc.
Although the City may lawfully sell the property,
the proceeds from the sale of the bonds would, to the extent of
any outstanding bond debt , have to be utilized toward the
reduction of that debt. The reason for this requirement is that
a municipality cannot use an indirect means to increase the
general fund - that is, exceed the constitutional 10 mil cap on
ad valorem taxation by using the indirect proceeds of a bond
issue while the bonds are outstanding. The reduction of the bond
debt can be accomplished by defeasing the bonds, or redeeming the
bonds ( if they are subject to redemption) .
We would recommend consulting with bond counsel
before choosing the method of applying the sale proceeds to the
debt. Any surplus remaining after applying the sale proceeds to
the bond debt can go to the general fund.
(b) Southwest Property (Old Shoremeade Annex)
Since this southwest property is not a part of the
City's Metered Parking system there is no impact from the 1984
Parking Revenue Bond issue. We are advised by the Finance
Director that the bonds for the bond fund which were used to
purchase the southwest property have been paid off.
Conclusion:
It is our conclusion that the City may sell both properties,
but that the proceeds from the sale of the northwest property
must be used to defease or redeem the outstanding bonds.
Prepared by:
Patrick N. Brown
Assistant City Attorney
PNB/mr
cc: William H. Harrison, Purch. & Prop. Mgmt. Dir .
Robert Nachlinger, Finance Director
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ORIGINAL
RESOLUTION NO. 87-18966
(Declaring the city owned property surplus
which is located on the Northwest and
Southwest corners of 36th Street and
Collins Avenue, Miami Beach, Florida,
namely Lots 12, 13 and 14 of Blk. 24, and
Lots 10, 11 and 15 of Blk. 26, amended Map.
Oceanfront property, Miami Beach Improve-
ment Company subdivision, Plat Book 5,
pages 7 and 8, and authorizing the City
Manager to solicit for appraisal services
and to prepare and issue a request for
proposals for the restoration and/or re-
development of said property)