2004-25500 Reso
RESOLUTION NO. 2004-25500
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE FIRST
PUBLIC HEARING, IN ACCORDANCE WITH THE REQUIREMENTS
OF SECTIONS 163.3220 -163.3243, FLORIDA STATUTES, ALSO
REFERRED TO AS THE FLORIDA LOCAL GOVERNMENT
DEVELOPMENT AGREEMENT ACT, ON WEDNESDAY, MARCH
17, 2004, TO CONSIDER APPROVING, ON FIRST READING, A
PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE CITY
OF MIAMI BEACH AND AR&J SOBE, LLC (a/kla
POTAMKIN/BERKOWITZ) FOR THE DEVELOPMENT OF THE
PROJECT, PRESENTLY REFERRED TO AS "5TH AND ALTON",
CONTAINING APPROXIMATELY 179,000 SQUARE FEET OF
RETAIL AREA AND A SUPERMARKET AND AN APPROXIMATE
943 SPACE PARKING GARAGE FACILITY, INCLUDING AN
INTERMODAL/TRANSPORTATION COMPONENT, AN
INTEGRATED PARKING GARAGE, VERTICAL
TRANSPORTATION, RAMPS, VENTILATION, ETC., AND
SURROUNDING STREETSCAPE AND PUBLIC INFRASTRUCTURE
TO SERVE THE PROJECT, BOUNDED BY LENOX AVENUE ON
EAST, ALTON ROAD ON WEST, 6th STREET ON NORTH AND 5th
STREET ON THE SOUTH, IN MIAMI BEACH.
WHEREAS, in July 2002, the Administration began meeting with representatives of
the site generally located on 5th Street and Alton Road, owned by the Potamkin family, to
review a preliminary site plan for a five (5) level mixed-use retail complex, including over
900 parking spaces; and
WHEREAS, one of the proposed commercial uses for the project included a
supermarket and, to that end, Publix issued a letter of intent to lease a ground floor area in
the complex; and
WHEREAS, in accordance with the City Commission's directive and the
community's identified needs, the City's interest in the project development was primarily
focused on achieving the public benefit of locating a supermarket, exploring transit and
excess parking opportunities, and developing a gateway project at one of the City's main
arterial entryway; and
WHEREAS, the proposed site contains approximately three (3) acres, and a
vacation of the public alley would also be required for the project to proceed; and
WHEREAS, on October 25, 2002, the Finance and Citywide Projects Committee
discussed this proposal to determine the City's interest in the project and the Committee
made a motion to authorize the Administration to move forward and fine tune negotiations
with the project developers; and
WHEREAS, over the past year, the City Administration has worked diligently with
the project developers to negotiate terms that would serve in the mutual best interest of the
parties; and
WHEREAS, a term sheet, reflecting the terms negotiated by the parties, was
presented to the Finance and Citywide Projects Committee on December 22, 2003; and
WHEREAS, the project developers continue with their outreach initiative, scheduling
meetings with various Citywide committees to present the proposed project schematics
and to obtain community input; and
WHEREAS, concurrent actions required to finalize a Development Agreement
include negotiation of a:
. Declaration of Restrictions and Reciprocal Easement Agreement ("DR&REA") that
will govern the parties and the operation and management of the public garage within the
project;
. Final operating proforma for the operation and management of the garage within the
project;
. Clarification of all Federal Transportation Administration (FT A) funding requirements
and restrictions; and
WHEREAS, subject to these conditions, the Administration recommends setting the
Public Hearing to approve the Development Agreement on First Reading on March 17,
2004, the Second Public Hearing will include the City Commission's consideration of the
DR&REA.
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 set the first Public Hearing, in accordance with the requirements of
Sections 163.3220-163.3243, Florida Statutes, also referred to as the Florida Local
Government Development Agreement Act, on Wednesday, March 17, 2004, to consider
approving, on first reading, a proposed Development Agreement between the City of Miami
Beach and AR&J SOBE, LLC (a/k/a Potamkin/Berkowitz) for the development of the
project, presently refereed to as "5th and Alton", containing approximately 179,000 square
feet of retail area and a supermarket and an approximate 943 space parking garage
facility, including an intermodal/transportation component, an integrated parking garage,
vertical transportation, ramps, ventilation, etc., and surrounding streetscape and public
infrastructure to serve the project, bounded by Lenox Avenue on East, Alton Road on
West, 6th Street on North and 5th Street on the South, in Mia . Beach.
PASSED and ADOPTED this 25th day of February 0 .
ATTEST:
~t~~
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
JMG/CMC/rar
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/~ Date
CllY OF MIAMI BEACH'
CONMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution Setting the First Public Hearing, in accordance with the requirements of Sections 163.3220-
163.3243, Florida Statutes, also referred to as the Florida Local Government Development Agreement Act,
on Wednesday, March 17, 2004, to consider approving, on First Reading, a proposed Development
Agreement between the City of Miami Beach and AR&J SOBE, LLC (alkla Potamkin/Berkowitz) for the
development of the project, presently referred to as "5th and Alton", containing approximately 179,000
square feet of retail area and a supermarket and an approximate 943 space parking garage facility,
including an intermodalllransportation component, an integrated parking garage, vertical transportation,
ramps, ventilation, etc., and surrounding streetscape and public infrastructure to serve the project,
bounded by Lenox Avenue on east, Allon Road on west, 6th Street on north and 5th Street on the south, in
Miami Beach.
Issue:
Shall the Mayor and City Commission set the Public Hearing for the first Reading of a Development
Agreement between City of Miami Beach and AR&J SOBE, LLC (a1k1a Potamkin/Berkowitz)?
Item Summa IRecommendation:
A Resolution setting the Public Hearing to approve the Development Agreement on First Reading on March
17, 2004 whereby the City will participate in a joint development opportunity to construct public parking
within a mixed use project at the entryway to the City at 5th Street and Allon Road.
A Second Public Hearing will include the City Commission's consideration of the Declaration of Restrictions
and Reciprocal Easement Agreement that will govern the parties and the operation and management of the
ublic ara e within the ro'ecl.
Adviso Board Recommendation:
Finance & Citywide Projects Committee - December 22, 2003 - Referred to full Commission.
2, 2004 -Will review further on March 1, 2004
Financial Information:
Source of
Funds:
D
Finance Depl.
City Clerk's Office Legislative Tracking:
I Christina M. Cuervo
Si n-Offs:
T:\AGENDA\2004\Feb2504\Consent\Potani<in.SUM.doc
AGENDA ITEM
DATE
G7;11
:;2 -JS-Ol(
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.miamibeachfLgov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and
Members of the City Commission
Date: February 25, 2004
Jorge M. Gonzalez \ ~ r--
City Manager O~1)
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, SETTING THE FIRST PUBLIC HEARING, IN
ACCORDANCE WITH THE REQUIREMENTS OF SECTIONS 163.3220.
163.3243, FLORIDA STATUTES, ALSO REFERRED TO AS THE FLORIDA
LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, ON
WEDNESDAY, MARCH 17,2004, TOCONSIDERAPPROVING,ON FIRST
READING, A PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE
CITY OF MIAMI BEACH AND AR&J SOBE, LLC (alkla
POTAMKIN/BERKOWITZ) FOR THE DEVELOPMENT OF THE PROJECT,
PRESENTLY REFERRED TO AS "5TH AND ALTON", CONTAINING
APPROXIMATELY 179,000 SQUARE FEET OF RETAIL AREA AND A
SUPERMARKET AND AN APPROXIMATE 943 SPACE PARKING
GARAGE FACILlTY,INCLUDINGAN INTERMODAUTRANSPORTATION
COMPONENT, AN INTEGRATED PARKING GARAGE, VERTICAL
TRANSPORTATION, RAMPS, VENTILATION, ETC., AND SURROUNDING
STREETSCAPE AND PUBLIC INFRASTRUCTURE TO SERVE THE
PROJECT, BOUNDED BY LENOX AVENUE ON EAST, ALTON ROAD ON
WEST, 6th STREET ON NORTH AND 5th STREET ON THE SOUTH, IN
MIAMI BEACH.
RECOMMENDATION
Adopt the Resolution
ANALYSIS
In July 2002, the Administration began meeting with representatives of the site generally
located on 5th Street and Alton Road, owned by the Potamkin family, to review a
preliminary site plan for a five (5) level mixed-use retail complex, including over 900 parking
spaces. One of the proposed commercial uses forthe project included a supermarket and,
to that end, Publix issued a letter of intent to lease a ground floor area in the complex. In
accordance with the City Commission's directive and the community's identified needs, the
City's interest in the project development was primarily focused on achieving the public
benefit of locating a supermarket, exploring transit and excess parking opportunities, and
developing a gateway project at one of the City's main arterial entryway.
The proposed site contains approximately three (3) acres, and a vacation of the public alley
would be required for the project to proceed. This project has been the subject of much
discussion due to (1) its pivotal location at the entrance to Miami Beach from the MacArthur
Causeway, (2) due to transportation/concurrency issues that will affect ingress/egress to
the site, and (3) massing/height issues related to the project. To that end, the developer
February 25, 2004
City Commission Memorandum
Potamkin/Berkowitz - Setting Public Hearing
Page 2 of 2
has been working with the City's design review and planning staff in redesigning the project
to be of the highest quality, commensurate with its prominent location.
On October 25, 2002, the Finance and Citywide Projects Committee discussed this
proposal to determine the City's interest in the project. The Committee made a motion to
authorize the Administration to move forward and fine tune negotiations with the project
developers; exploring the following: the vacation of the public alley, determination of the
relative value of said alley, the possibility of participating in the project as a partner in
building and/or operating the garage portion of the development, and the availability of
grants and other resources for funding construction of any city participation.
Over the past year, the City Administration has worked diligently with the project
developers to negotiate terms that would serve in the mutual best interest of the parties.
The attached term sheet reflects the terms negotiated by the parties and was presented to
the Finance and Citywide Projects Committee on December 22, 2003. The Committee
referred the item to the full Commission for action and the Committee's comments from
that meeting are incorporated in the attached term sheet in bold and italics.
Concurrent with the negotiations, the Potamkin/Berkowitz group is appearing in front ofthe
Planning Board to seek approval to implement a signage overlay district to permit effective
signage for the Supermarket and for the retail tenants within the Project. Additionally, the
project developers continue with their outreach initiative, scheduling meetings with various
Citywide committees to present the proposed project schematics and to obtain community
input. Since January 2004, the Developer has presented its plans before the Finance and
Citywide Projects Committee and the Parking and Transportation Committee (another
presentation is scheduled on 03/01/04); and are scheduled to go before the Tuesday
Morning Breakfast Club and other committees.
While support for the Project is generally widespread, at both the Transportation and
Parking and Finance and Citywide Projects Committee, the public raised some concerns
on the economic viability of the parking operation and ingress/egress challenges to the site.
The parties will continue to seek further community outreach with area
businesses/residents.
Concurrent actions required to finalize a Development Agreement include negotiation of a:
. Declaration of Restrictions and Reciprocal Easement Agreement (UDR&REA") that
will govern the parties and the operation and management of the public garage
within the project.
. Final operating proforma for the operation and management ofthe garage within the
project.
. Clarification of all Federal Transportation Administration (FT A) funding requirements
and restrictions.
Subject to these conditions, the Administration recommends setting the Public Hearing to
approve the Development Agreement on First Reading on March 17, 2004. The Second
Public Hearing will include the City Commission's consideration of the DR&REA.
JMG/C~rar
T:\AGENDA\2004\feb2504\Consent\Potanidn.MEM.doc
POT AMKIN - TERM SHEET
February 25, 2004
Incorporates comments based on Finance & Citywide Projects Committee
Meeting of December 22, 2003
Owner(s):
City of Miami Beach ("City") and Potamkin/Berkowitz
(Entity to be formed)
Developer:
AR&J SOBE, LLC (a/k1a Potamkin/Berkowitz or
"P&B")
Developer AlE (Designers):
Robin Bosco with Todd Tragash
Developers Corporate Status:
TBD
Project Description:
Subject to the approval of the appropriate Boards
after public hearing, Developer shall construct the
Project depicted on the Project Concept Plans
attached hereto, which Project, shall contain
approximately 179,000 square feet of Retail Area and
Supermarket and an approximate 943 space Parking
Garage Property, including an
intermodal/transportation component (the scope of
which is to be mutually agreed to by the parties), an
integrated parking garage, vertical transportation,
ramps, ventilation, etc., surrounding streetscape and
public infrastructure to serve the facility.
Development Site:
Parcel bounded by Lenox Avenue on East, Alton
Road on West, 6th Street on North and 5th Street on
the South, Miami Beach, defined as "Development
Site" and collectively includes: "Retail Area",
"Supermarket", and "Garage Property".
. "Retail Area" is defined as approximately
134,000 sf of retail/commercial area on the 1 5 ,
3rd and 4th levels within the Project.
. "Garage Property" is the parking garage facility
containing approximately 503 parking spaces
to serve the Public ("Public Spaces") and the
Supermarket ("Supermarket Spaces") and
approximately 440 parking spaces required to
serve the Retail Area ("Retail Spaces") within
the Project. The Garage Property consists of
Public Spaces, Supermarket Spaces and
Retail Spaces.
. "Supermarket" is approximately 45,000 sf area
on the ground level which will be opened as a
supermarket, pursuant to a long term lease.
Potamkin Term Sheet
February 25, 2004
Page 20'9
City Improvements:
P&B will convey a condominium or air rights interest
so that title to an undivided 503 parking spaces (Le.
the Public Spaces and Supermarket Spaces), which
spaces will be constructed in accordance with all
Code requirements, (e.g. roadways), together with
any public improvements, which will be owned by the
City of Miami Beach.
P&B Improvements:
P&B will own the Retail Area, Supermarket and Retail
Spaces, as well as the underlying land and all
common areas (reciprocal access easements).
[Finance & Citywide Projects Committee asked if
restrictions can be placed on retail tenants and/or
quality of tenant mix]
Alley
In accordance with its procedures governing same,
City will vacate and convey its title, free of any
encumbrances or rights to possession by any party, to
P&B to the alley containing approximately 7,800 sf
within the Development Site to the Project to enable
development of the Project within a contiguous parcel
and as consideration for the public benefits described
herein.
Neighboring Property:
The deed shall contain a right of reverter, providing
that the Alley shall be reconveyed to the City, if for
any reason, the Project is not developed.
15,000 sf vacant lot on Alton Road between 6th Street
and 7th Street, at 633 Alton Road. City will have a
purchase option for this parcel at $1,000,000, or
$66.67/sf., which option shall be exercised, if at all,
and the transaction closed within three years from the
Date of Commission approval of the Development
Agreement. Thereafter, the City shall have the option
to purchase at the then market value and/or a right of
first refusal to acquire the Neighboring Property.
City's intent is to exercise option if transportation
planning analysis warrants acquisition.
Pending development of the Neighboring Property by
the City following is acquisition, if at all, the Parties
may use said Property for overflow parking.
Legal Descriptions:
Actual legal description(s) for Retail Area, Garage
Property (Le. Public Spaces, Supermarket Spaces
and Retail Spaces) and Supermarket, collectively the
"Project", to be finalized upon completion of the
improvements - "as builts".
Potamkin Term Sheet
February 25, 2004
Page 30(9
Proiect Cost/Responsibilities:
Retail Area and Supermarket
And Retail Parking Spaces:
Public and Supermarket Parking
Spaces:
City Funding Sources:
Cost to City 'Capped:
Garaae Property:
City to Manage and Operate
Garage:
P&B shall be contributing land and constructing
improvements within the Project having a value of not
less than $32,000,000.
City will fund $14,413/per parking space inclusive of
soft costs (including but not limited to any Prevailing
Wage Requirements and all site development costs,
permit and concurrency fees, if applicable), or
$7,250,000, as a maximum contribution from City for
City's 503 parking spaces. P&B will design and
construct the entire garage. CMB shall own/operate
the Public and Supermarket Parking spaces, which
shall be operated as a public municipal garage
together with the 440 Retail Spaces.
P&B will comply with all requirements of funding
sources provided by City for construction of the City
Improvements, (Le. 503 Public and Supermarket
Spaces). P&B shall, if such requirements prove too
onerous at P&B's sole discretion, have the right to
terminate the sale of the Parking Spaces. [Finance &
Citywide Projects Committee has problem with
this previous statement. Issues must be resolved
at onset} However, in consideration of the Public
Benefits, including initial development of the
Supermarket, the City shall convey the Alley to P&B.
Developer is responsible for cost overruns. Under no
set of circumstances shall the City of Miami Beach be
responsible for the disbursement of any sums in
excess of $7,250,000. 100% of the risk of cost
overruns for construction and development of the
parking garage, including the related vertical
transportation, vehicular ramps, etc. shall be that of
P&B. The cost to the City is fixed and capped.
The City of Miami Beach shall be responsible for
managing and operating the Garage Property at City
garage rates in accordance with a set of guidelines
and standards to be mutually agreed upon in writing
by the parties, but of a quality and consistency no less
Potamkin Term Sheet
February 25, 2004
Page 40f9
Annual P&B Contribution:
Patron Parking:
Garage Operating Budget:
Owner(s) Fund Any Deficit:
Division of profits:
than that which is utilized by the City of Miami Beach
in operating and managing other garages owned or
operated by it. P&B shall be responsible for providing
security for the Project, including the Garage
Property, janitorial, repair and maintenance services,
all in accordance with a budget to be mutually agreed
upon. P&B acknowledges that the City is self-
insured. Notwithstanding that fact, the City shall
contribute its pro rata share of the cost of Liability
Insurance (minimum of $5,000,000) and Defense
coverage to cover P&B in connection with any claims,
including attorneys fees, arising out of operation of
the Garage.
P&B or its Tenants have proposed to contribute a
minimum of $290,000 annually toward the
Garage/Security operating budget in consideration for
Retail Area daily use upon a validated basis. (The
Parties have numerous details and issues left to
resolve and to refine in connection with the
operation and funding of the Garage.)
In consideration of the annual contribution by P&B, an
agreed upon quantity of parking will be assured for
the employees and customers of Project's tenants,
including the Supermarket, and they shall be
permitted to park within the garage without incurring
an additional fee on a permit or validated basis during
store operating hours.
In determining "Net Revenues", both parties shall
agree on a reasonable operating budget for operating
the Garage Property, which may include a reasonable
management fee for operating the garage and for
providing security, maintenance and janitorial service.
The City and P&B, on a proportionate basis, shall
guaranty against any operating loss and shall fund
any operating (including repair/replacement costs)
deficiencies for the Garage Property on an annual
basis.
The City and P&B shall share on a proportionate
ownership basis in any net profit realized from the
operation of the Garage Property.
Potamkin Term Sheet
February 25, 2004
Page 50'9
Parking Requirements:
The Supermarket parking requirements will be
satisfied within the Supermarket Spaces, herein
defined, and City will provide the necessary
mechanism to comply with any regulatory parking
requirement for the Supermarket.
Proiect Construction:
Development Agreement Term: Not to exceed _ years from commencement date,
and may be mutually extended by parties. (Section
_ of Dev. Agrmt.) [Must discuss condo
association or surviving entity to Dev. Agrmt that
will govern the parties. Management and
Operating Agreement for Parking.
Per P&B, parties must address right to
repurchase the Garage on equitable terms in the
event of casualty or a substantial change in
circumstances rendering the then existing use
impractical or unfeasible.]
ConcurrencyfTraffic Analysis: P&B will be obligated to perform a traffic analysis and
mitigate and meet all concurrency requirements for
the "Retail Area" and for the Supermarket, to the
extent they apply.
[Finance & Citywide Projects Committee stated
Traffic Analysis is required as part of Project]
Construction Staging: Construction staging for the Project will be confined to
the Development Site or Adjacent Property (which will
be made available without charge for that purpose,
even if the City has exercised its option and has
acquired the Adjacent Property), thereby not
impacting adjacent residential areas.
Performance Bond: Prior to commencement of construction, P&B shall
cause G.C. to furnish City with payment and
performance bond (or a dual obligee rider with P&B's
Lender) or Letter of Credit to provide a Completion
Guarantee for the Project. (Section _ of Dev.
Agrmt.)
Underground Utilities: Developer will relocate any underground utilities now
existing on the Development site, if necessary,
included in Developer's project costs. The City shall
provide Right of Way or other utility easements to
enable Developer to relocate any such underground
utilities off site.
Potamkin Term Sheet
February 25, 2004
Page 6 of 9
Co nstruction/Perm itting:
Commencement Date:
Project Concept Plan:
Preliminary Plans and Specs:
Plans and Specs:
Building Permit:
Possession Date:
Construction Completion:
Environmental Matters:
Art in Public Places (AIPP):
Public Benefits:
Public Space in Project:
Public Benefits:
Execution Date of Agreement
Attached to Dev. Agreement as Exhibit
To be submitted within 6 months from Commencement Date for
DRB/HP approval. (Section _ of Development Agreement)
To be submitted 9 months from final DRB/HP approval. (Section
_ of Development Agreement)
18 months from DRB/HP approval but in any event no later than
3 years from Commencement Date
Upon TCO
No later than 4 years from Commencement Date, subject to
unavoidable delays. "Completion Deadline" as defined in
Development Agreement.
P&B is responsible for any required environmental
remediation within the Development Site.
The City has advised that the proposed project
constitutes a public joint development, and that the
AIPP 1 %% will apply to the Project construction cost
(per proposed revisions to ordinance). Developer has
advised the City that it intends to install a major piece
of Art by Romero Britto at the entrance of the Project
and that if the AIPP is not waived, it will render this
transaction economically infeasible, Developer shall
seek a waiver of the AIPP requirement from the City
Commission, simultaneously with the approval of the
Development Agreement. Per P&B, if the AIPP is not
waived, P&B may terminate the City's right to
purchase the parking spaces and to operate the
Garage as a municipal lot.
P&B agrees to create a public
intermodal/transportation component to the Project to
serve the Public (the nature and scope of which shall
be mutually agreed upon by the Parties).
P&B commits to enter into a long term lease with and
to construct an approximately 45,000 sf. Supermarket
on site.
City receives Public Benefits, including the following:
a. Opportunity for City to address present and future
parking deficiencies at a key "gateway"
intersection at a fixed, competitive cost, without
having to condemn land at a prohibitive price.
b. Addresses parking deficiencies identified in
Alternatives Analysis in Parking Study.
Potamkin Term Sheet
February 25, 2004
Page 70(9
c. Supermarket will be secured as an anchor tenant
based on a long term lease agreement (see
"Change in Use" below).
d. Potential to serve as a collector to alleviate traffic
congestion before entering the Historic District.
e. Project design/reduction in density.
f. Redevelopment of environmentally contaminated
Brownfield Site.
g. Project preserves the historical character of the
building located at the corner of 5th and Lenox.
[Finance & Citywide Projects Committee
suggested a First Source Hiring Agreement
with Miami Beach residents}
h. Creation of 600+ Jobs for the community.
i. Public use of 100% of the parking spaces
(approximately 943 spaces) during high traffic
hours.
Other:
Real Estate Taxes:
Each party will be responsible for their respective
portion in the event Ad Valorem taxes are assessed.
Change in Use:
If the Supermarket ceases to operate and to serve the
public, an acceptable substitute use will be mutually
agreed upon by the parties, failing which, at P&B's
option, the Supermarket facility will automatically
revert to City, for retail uses only, at the same rental
rate and on the same terms and conditions which had
been extended to the Supermarket pursuant to its
Lease Agreement; or P&B shall have the option to
acquire the Public Spaces and the Supermarket
spaces at the then market value.
Prohibited Uses:
P&B shall in no way use the Project for any
purpose/use that would impair status/integrity of this
and other public funds initially used to construct
improvements.
Mutual Cooperation:
Both parties will agree to cooperate fully in
maximizing the Benefits to which the project may be
entitled pursuant to the "Brownfield Recovery Act", the
Enterprise Zone Designation, and/or any other State,
Local or Federal program, including but not limited to
the waiver of impact fees relating to the Supermarket
and to the entire Garage. To the extent that such
benefits are available only to a municipality or
governmental entity (such as EDA grants or HUD
grants for infrastructure or utility relocation), the City
Potamkin Term Sheet
February 25, 2004
Page 80f9
agrees to make application and to diligently pursue
maximizing the recovery of such available benefits on
behalf of P&B. Any funds, which may be recovered
from any Federal, State or County program by the
City as for reimbursements or grants shall be remitted
to P&B for use in constructing the Project. In addition,
the City agrees to cooperate fully in presenting and, if
approved, in implementing a signage overlay district
to permit effective signage for the Supermarket and
for the retail tenants within the Project.
Right of First Offer:
In the event that P&B wishes to market the Project for
sale, P&B shall first offer the same to the City at a
specified purchase price, on an all-cash basis, to
close within 90 days. Thereafter, the City shall notify
P&B whether it wishes to purchase the Project within
15 days after receipt of the offer, failing which P&B
shall be free to sell the Property to any third party at a
price equivalent to or more than that tendered to the
City. [Finance & Citywide Projects Committee
stated 15 days will not be sufficient]
Miscellaneous Issues:
Developer has indicated the need to address
Construction Loan lender issues, real estate tax
issues, depreciation issues, liability issues and
condemnation issues.
Requirements for Vacation of Alleys, Easements and City Rights-of-Way (submitted
separately)
Reoulatorv Procedure for Conveyance of Allev:
The City of Miami Beach shall comply with Ordinance 92-2783 (aka Shapiro Ordinance)
adopted by the City Commission on June 17, 1992, and codified in the City Code as
Article II, entitled "Sale or Lease of Public Property", more specifically with Sections 82-
37 through 82-39, which require the following:
1 ) Public Hearino.
Section 82-37 of the Miami Beach City Code requires that the City Commission
hold a public hearing, advertised not less than 15 days prior to the hearing, in
order to obtain citizen input into any proposed sale and/or lease.
2) Planninq Department Analvsis.
Section 82-38 of the Miami Beach City Code requires that the Planning
Department prepare an analysis in order for the City Commission and the public
to be fully apprised of all conditions relating to the proposed sale of the property.
Potamkin Term Sheet
February 25, 2004
Page 9 0'9
3) Advertised Public Biddinq Process and Appraisal.
Section 82-39 states that there shall be no sale of City property unless there has
been an advertised public bidding process and an independent appraisal of the
fair market value of the property.
(Note: In regard to any sale of City property, the conditions of only this section
may be waived upon a five-sevenths vote of the city commission upon a finding
by the City Commission that the public interest would be served by waiving such
conditions of bidding and/or appraisal for the disposition of the property.
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