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93-20975 Reso • RESOLUTION NO. 93-20975 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RATIFYING THE RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT AGENCY DECLARING ACQUISITION OF THE PROPERTY KNOWN AS THE ST. MORITZ LOCATED AT 1565 COLLINS AVENUE AND LEGALLY DESCRIBED AS THE NORTH 1/2 OF LOT 8 AND LOTS 9 AND 10 AND LOTS 11 AND 12 AND THE NORTH 1/2 OF LOT 13, BLOCK 56, ALTON BEACH FIRST SUBDIVISION, AS RECORDED IN PLAT BOOK 2 AT PAGE 77 TO BE A PUBLIC NECESSITY FOR THE PROJECT KNOWN AS CITY CENTER/CONVENTION VILLAGE PROJECT, AUTHORIZING THE ACQUISITION OF THE ST. MORITZ BY PURCHASE, DONATION OR THE FILING OF EMINENT DOMAIN PROCEEDINGS AND DECLARATION OF TAKING, AS NECESSARY AS A POTENTIAL SITE FOR A HOTEL DEVELOPMENT. WHEREAS, the City of Miami Beach is proceeding with its plan for economic stimulation and development by constructing a major convention quality hotel and an appropriate Request for Proposals addressing and further detailing same has been finalized; and WHEREAS, for the purpose of realizing the type of hotel development contemplated by Request for Proposals, the City must acquire the property known as the St. Moritz Hotel located at 1565 Collins, Avenue, Miami Beach, Florida, (the "St. Moritz Site")' ; and WHEREAS, the Mayor and the City of Miami Beach Commission by Resolution No. 92-20646 and the Dade County Commission by Resolution No. R-14-93 declared the area known as the City Center/Convention Village which includes the St. Moritz Hotel, to)be a Redevelopment Area in which conditions of slum and blight have been demonstrated; and WHEREAS, the Mayor and the City of Miami Beach Commission acting as the Miami Beach Redevelopment Agency have adopted a redevelopment plan for the area known as the City Center/Convention Village; WHEREAS, acquisition is a remedy to eliminate slum and blight and preserve historic properties by undertaking the necessary efforts to redevelop them according to approved plans; and WHEREAS, the St. Moritz has been selected by the' Miami Beach Historic Preservation Board as a building of important historic resource and is designated in the City's Historic Properties Data Base as a historic building; and WHEREAS, the St. Moritz is currently not properly 'sealed and is exposed to the elements resulting in the structure being in total disrepair and further deteriorating with each passing day; and WHEREAS, the Summary of Findings Pertaining to a Proposed Convention Headquarter Hotel Miami Beach, Florida, dated, March 1990, prepared by Laventhol & Horwath and the Miami ' Beach Convention Village, Phase One: Convention Hotel Compatibility Study dated September 1992, prepared by Wallace, Roberts & Todd, Zyscovich, Inc. , Kenneth Leventhal & Co. , Hardy, Holzman Pfeiffer Associates and other studies determined that in order for the Miami Beach Convention Center to survive, a convention hotel supporting the Convention Center was necessary in the immediate area; Iand WHEREAS, the Miami Beach Redevelopment Agency found, determined and declared that the acquisition of the St. Moritz is • L a public necessity and is necessary, practical and in the best interest of the City of Miami Beach; and WHEREAS, the Executive Director of the Agency recommended that the Miami Beach Redevelopment Agency authorize the Agency attorney to institute eminent domain proceedings on the forementioned property; WHEREAS, the Miami Beach Redevelopment Agency found, determined and declared that it is necessary to acquire fee simple title to the St. Moritz property for use in the City Center/Convention Village redevelopment project; I WHEREAS, the Miami Beach Redevelopment Agency found, determined and declared that the acquisition of the St. Moritz is a public necessity and is necessary, practical and in the best interest of the City of Miami Beach; and WHEREAS, the Miami Beach Redevelopment Agency found, determined and declared that the acquisition of the St. Moritz by purchase, donation, or eminent domain proceedings including declaration of taking is for the public use and benefit; and I WHEREAS, the Mayor and City Commission concur with all of the above findings of the Miami Beach Redevelopment Agency. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA THAT THE MAYORIAND CITY COMMISSION HEREBY RATIFY THE RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT AGENCY DECLARING ACQUISITION OF THE PROPERTY KNOWN AS THE ST. MORITZ LOCATED AT 1565 COLLINS AVENUE AND LEGALLY DESCRIBED AS THE NORTH 1/2 OF LOT 8 AND LOTS 9 AND 10 AND LOTS 11 AND 12! AND THE NORTH 1/2 OF LOT 13, BLOCK 56, ALTON BEACH FIRST SUBDIVISION, AS RECORDED IN PLAT BOOK 2 AT PAGE 77 TO BE A PUBLIC NECESSITY' FOR THE PROJECT KNOWN AS CITY CENTER/CONVENTION VILLAGE PROJECT, AUTHORIZING. THE ACQUISITION OF THE ST. MORITZ BY PURCHASE, DONATION OR THE FILING OF EMINENT DOMAIN PROCEEDINGS ' AND DECLARATION OF TAKING, AS NECESSARY AS A POTENTIAL SITE FOR A HOTEL DEVELOPMENT. PASSED AND ADOPTED THIS 17th 6AY OF Novem , 9)i, YOR ATTEST: ' CLERK • I FORM APPROVED LE PT. By Date 3 jni t. I /6 3 . o Z J q is h I , • 0. (UN 1 • r, • • 1 ' : t gm, i Y Ii" 1-I 11.1, • • . J /XTEEA TH. • JTREET 0 • t i // ' . ,d •_ V� ST. MORI ,Z _JIIW __/Rsu_ W . ►• up P)DPOSE. • • • 1 -I, .. c,•::) . .. , - . pc ' - 1..i . z NMani PROP SED FOR •UISITION . . ` ! RO �I PALM NEGOTIATE o a 0IMMO 1. � IN NEGOTIA' ION �r I— • � -_ -- 1 - ---_ , � {. 411PIIIINIIIIIIIIIIL us' �n • 14 • It . • SM.•ON/BANCROIT k • • , 1 7,;I• . • , . .. . . • ' .4. r I :' ! . 4, k •v . ZW n • • • . FIFTEENTH o° ST: - . dQ. A"... • . 4 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. CD-4 -93 TO: Mayor Seymour Gelber and DATE: November 17 , 1993 Members of the City Commission FROM: Roger M. Cartt City Manager SUBJECT: UPDATE ON HOTEL SITE LAND ACQUISITION AND AUTHORIZATION TO: (1) PROCEED WITH QUICK TAKE EMINENT DOMAIN ON THE ST. MORITZ PROPERTY AT 1565 COLLINS AVENUE; AND (2) THE MAYOR AND CITY CLERK TO EXECUTE A CONTRACT FOR THE ACQUISITION OF THE FORMER POINCIANA HOTEL SITE AT 1555 COLLINS AVENUE ADMINISTRATION RECOMMENDATION: It is recommended that : (1) the Administration and City Attorney be authorized to file quick take eminent domain actions to acquire the St . Moritz hotel and property at 1565 Collins Avenue; (2) that the Mayor and City Clerk be authorized to sign a contract for acquisition of the. former Poinciana property at 1555 Collins Avenue. BACKGROUND: The Administration, legal staff and outside counsel, David Berger, have been meeting with property owners or their representatives since the original Commission direction last month to pursue the acquisition of the various parcels from 1535 Collins Avenue north to 1565 Collins Avenue. The Commission' s highest priority has been the acquisition of the St . Moritz parcel, because of the imminent danger to the building due to the present owners' neglect and also because it logically ties into the Sands/New Yorker parcel that the City already has under contract . Unfortunately, due to the present ownership structure in a foreign partnership and litigation between owners, it will be the most difficult to acquire the property by negotiations . The City' s appraisals for the property are $5 million and $4 .335 million. The owners' representatives have substantially more in mind. It is the Administration' s belief that further negotiations will not be successful allowing the building to further deteriorate. The Agency must initiate eminent domain proceedings in order to be assured of a timely and fair priced acquisition. Because the City is also going out with an RFP in the very near future, it is strongly recommended that a quick take action be taken. A quick take requires the City to deposit the undisputed appraisal amount into an escrow account at the time of filing the eminent domain action. Title to the City is vested at this time. • Regardless of the final value determination by the Court, the City is required to complete this acquisition and make full payment . -1- AGENDA �_ a ITEM r"► • DATE 1 I- 1 -7 93 A slow take process allows the City to withdraw from the procedure at any time. Title to the property is not vested with the City until issuance of the final judgement, at which time the City, if they wish to complete the transaction, must make payment in full . The City has also conducted successful negotiations on the Poinciana parcel . The site at 1555 Collins Avenue is just south of the St . Moritz . The two appraisers have valued the property at (a) $2 . 1 million as is versus $2 . 7 million as an assembled parcel and (b) $2 . 19 million. The parcel is vacant and would be valuable to the City/Agency as either an adjunct to the Sands/St . Moritz assembly or if further action is pursued to the south as an adjunct to the Royal Palm and Shorecrest . The owners have agreed to a price of $1, 850, 000, substantially below the appraisals . A contract is being prepared and is under review by the City Attorney' s office. It will be distributed in the Addendum on Monday, November 15th, along with Resolutions approving both actions discussed herein. It is similar to the Sands contract, allowing a 60-day due diligence period for the City to perform all necessary inspections and . 30 more days to close. The Administration believes that .this is a very advantageous acquisition. CONCLUSION: The authorization for condemnation under quick take procedures for the St . Moritz is necessary to obtain the property in a short time before deterioration becomes too great to allow renovation. The acquisition of the Poinciana site below appraisal value is extremely advantageous to the convention quality hotel project ., Therefore, your approval of the Poinciana contract is recommended as well as authorization to initiate quick take procedures for the St. Moritz . The Resolution and the contract draft are under legal review and will be sent to the Commission under separate cover Monday, November 15, 1993 . RMC:jph Attachments QUINLIVAN APPRAISAL A PROFESSIONAL ASSOCIATION REAL ESTATE APPRAISERS & CONSULTANTS 5730 S.W. 74TH STREET, SUITE 300 SOUTH MIAMI, FLORIDA 33143 • J. MARE QUINLIVAN, MAI TELEi'HONE (305) 663-8611 GREGORY R. GUNTER, MAI STATE-CERTIFIED GENERAL APPRAISER STATE-CERTIFIED GENERAL APPRAISER FAX (305)88:f-492L RZ 0000438 RZ 0000112 • JAMES E. AGNER, MAI THOMAS F. MAOENHEIMER, MAI STATE-CERTIFIED GENERAL APPRAISER • STATE-CERTIFIED GENERAL APPRAISER RZ 0000382 RZ 0000553 September 23, 1993 Mr. Harry S. Mavrogenes, Director City of Miami Beach Development, Design, and Historic Preservation Services Department 1700 Convention Center Drive Miami Beach, Florida 33139 Mr. Mavrogenes: In accordance with your request and authorization, we have prepared this Appraisal Report covering the following described property: An ocean front land site known as the St. Moritz Hotel Site, located at 1565 Collins Avenue, Miami Beach, Florida. The purpose of this Appraisal is to estimate the Market Value of the described property as of September 15, 1993, being one of the dates of personal inspection. The narrative Appraisal Report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusions set forth. A survey of the described property was not provided for analysis. The site size contained herein is based on recorded plats and the site size on the tax roll of Dade County. The site size utilized herein is assumed to be correct. • • • Mr. Harry S. Mavrogenes, Director September 23, 1993 Page Two Based on the inspection of the property and the investigation and analyses undertaken, we have formed the opinion that, as of September 15, 1993, the subject property has a Market Value of: Foul MILLION TuaFS HUNDRED AND THIRTY-FIVE THOUSAND DOLLARS ($4,335,000) Respectfully submitted, )14121-&--vti-j— jMark Quinlivan, MAI State Certified General Appraiser Certification Number: RZ0000112 -7L-teov 7 Thomas F. Magenhe®er, MAI State Certified General Appraiser Certification Number. RZ.0000553 • JMQ/nlm (93=152D) • HEDG-PETH & GALLAHER, INC. REAL ESTATE APPRAISERS ANI)CONSULTANTS laceNscu RI i I:.i xi;:liuu'jeus - CERTIFICATE OF APPRAISAL ROBERT E. GALLAHER, JR. and PATRICIA J. BIRCH do hereby certify that upon application by Ms. Marla Dumas, Redevelopment Coordinator for the City of Miami Beach, they have made an investigation and analysis of the property legally described on page - 10 of this report and that, in their opinion, the market value of the fee simple title, as of September 30, 1993 was as follows: FIVE MILLION DOLLARS $5,000,000 The undersigned appraisers certify that, to the best of their knowledge and belief, the statements contained in this report are true and correct; the reported analyses, opinions, and conclusions are limited only by the reported "Assumptions and Limiting Conditions" at page 2, and are their personal, unbiased professional analyses, opinions, and conclusions;their compensation is not contingent on an action or event resulting from the analyses, opinions or conclusions in, or the use of, this report; also that this appraisal has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute and in conformity with the requirements of the State of Florida for state certified appraisals. The use of this report is subject to the requirements of the Appraisal Institute and the State of Florida relating to review by duly authorized representatives of the Institute and by the Real Estate Sub- Committee of the Florida Real Estate Commission. The appraisers do further certify that they have no present or prospective interest in the property and no personal interest or bias with respect to the parties involved and that they have made a personal inspection of the property that is the subject of this report and that there has been no unacknowledged significant professional assistance. As of the date of this report, Robert E. Gallaher, Jr., has completed the requirements under the continuing education program for the Appraisal Institute and both Mr. Gallaher and Ms. Birch have completed the continuing education requirements for the State of Florida. . ROBERT ALLAHER, JR., MAI ATRICIA J. BIRCH State Certifi d General Appraiser State Certified General Appraiser Certificate No. RZ0000098 Certificate No. RZ0001294 DATED: OCTOBER 29, 1993 I One Datran Center•9100 South Dadeland Boulevard,Suite 1704•Miami,Florida 33156•Phone(305)670-2211 •Fax(305)670-9988