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Resolution 2024-33401 RESOLUTION NO. 2024-33401 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ON SECOND READING, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS JUNE 28, 2024 MEETING, AND WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(A) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE SERVED BY WAIVING SUCH CONDITION, AND APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AN AIR RIGHTS EASEMENT AGREEMENT PURSUANT TO SECTION 82-37(A)(2) OF THE CITY CODE, IN THE FORM ATTACHED TO THIS RESOLUTION AS EXHIBIT "A", AMONG THE CITY (GRANTOR) AND MMS 7 FARREY, LLC (AS TO 50%) AND FARREY LN DG MASTER PLAN, LLC (50%), AS TENANTS IN COMMON (GRANTEES), FOR USE OF A 20 FOOT AERIAL EASEMENT OVER A PORTION OF THE FARREY LANE RIGHT-OF-WAY (EASEMENT AREA) ADJACENT TO THE PROPERTIES OWNED BY GRANTEES, LOCATED AT 6 FARREY LANE AND 7 FARREY LANE (GRANTEES' PARCELS), SO THAT GRANTEES MAY CONSTRUCT A UNIFIED, MULTILEVEL SINGLE-FAMILY HOME, UTILIZING THE EASEMENT AREA AS A SKYBRIDGE BETWEEN GRANTEES' PARCELS FOR THE CONSTRUCTION OF THREE HABITABLE CONNECTING FLOORS; SAID EASEMENT AREA CONSISTING OF A BASE ELEVATION OF 17.12 FEET ABOVE THE GRADE SURFACE OF FARREY LANE TO AN UPPER LIMIT ELEVATION OF 65.56 FEET, HAVING APPROXIMATELY 36,301 CUBIC FEET OF AIR SPACE BETWEEN THE ELEVATIONS, SUBJECT TO AND CONDITIONED UPON, GRANTEES: (1) SECURING ALL LAND USE DEVELOPMENT APPROVALS AND OTHER REQUIRED REGULATORY APPROVALS; AND (2) DELIVERING TO THE CITY A VOLUNTARY MONETARY PUBLIC BENEFIT IN THE AMOUNT OF$803,250.00, OF WHICH $300,000.00 IS TO BE ALLOCATED TOWARD THE BELLE ISLE DOG PARK PROJECT, AND THE REMAINDER OF THE FUNDS TO BE ALLOCATED AT THE CITY'S DISCRETION. WHEREAS, at its March 13, 2024 meeting, the City Commission, at the request of Commissioner Joseph Magazine, approved referral item C4J to the Finance and Economic Resiliency Committee (FERC)to discuss the possible conveyance of an air rights easement to MMS 7 Farrey, LLC (as to 50%) and Farrey Ln Dg Master Plan, LLC (50%) (collectively, "Grantees"), as owners of the properties located at 6 Farrey Lane and 7 Farrey Lane ("Grantees' Parcels"), to allow for the connection, with habitable space, of Grantees' Parcels; and WHEREAS, the air rights will allow for unified construction on Grantees' Parcels, which are separated by the public Farrey Lane right-of-way, without the conveyance of any floor area to either of the Grantees' Parcels; and WHEREAS, at the May 24, 2024 FERC meeting, the Public Works Department favorably recommended approving the air rights easement, provided Grantees contributed to the City the proposed public benefit in the total monetary amount of $803,250.00, based upon an appraisal secured by the City Administration; and WHEREAS, FERC members recommended engaging the neighborhood to determine if there is opposition to the proposed air rights easement, as it was commented that last year the Belle Isle Residents Association, Inc. ("BIRA")was not in favor of this initiative when presented with a similar discussion at Committee), and FERC members requested that staff gather feedback from the neighboring property owners and report back to FERC the following month; and WHEREAS, at the June 28, 2024 FERC meeting, as part of the FERC Memorandum, the Administration included letters of support from the neighboring Farrey Lane property owners provided by Grantees, and FERC members recommended in favor of approving the air rights easement, provided that the Grantees engaged BIRA with respect to the approval of the proposed easement; and WHEREAS, pursuant to Section 82-37(a)(2)of the City Code, Grantees are seeking an aerial easement ("Easement"), with an easement area consisting of a base elevation of 17.12 feet above the grade surface of Farrey Lane to an upper limit elevation of 65.56 feet, having approximately 36,301 cubic feet of air rights between the elevations ("Easement Area"), as more particularly described in the sketch and legal description attached to this Resolution as Exhibit "A", to allow for the construction of a skybridge, connecting Grantees' Parcels with habitable space, at Grantees' sole cost and expense, including any ad valorem real estate taxes assessed against said Easement Area; and WHEREAS, the City has previously approved pedestrian bridge connector projects, such as the connectors for the Tides and the Betsy Hotel; however, in this case, the Grantees will be developing three levels of habitable improvements within the skybridge connector, having a total of approximately 1,841.57 square feet, which will include a private balcony, decorative architectural features, a portion of a lap pool and roof terrace; and WHEREAS, pursuant to Section 82-38 of the City Code, any proposed sale or lease of City- owned land is required to be analyzed from a Planning perspective, based upon the criteria set forth in Section 82-38, so that the City Commission and the public are fully apprised of all conditions related to the proposed sale or lease; and WHEREAS, on October 2, 2024, the City's Planning Department prepared a Planning analysis, a copy of which is attached to the City Commission Memorandum accompanying this Resolution as Exhibit"B",finding that the proposed Easement is consistent with the criteria in Section 82-38 of the City Code; and WHEREAS, pursuant to Section 82-39(b)of the City Code, an appraisal was conducted and received on March 19, 2024, a copy of which is attached to the City Commission Memorandum accompanying this Resolution as Exhibit "C", in order to form an opinion of the market value of the proposed Easement, which calculated the fee simple market value of the subject air rights and land value; and WHEREAS, Grantees and the City Administration have reached agreement as to the monetary value of the Easement in the form of a public benefit, as follows: $595,000.00 appraised market value of the Easement + 35% (median range of 20-50%) range above market value as suggested on the appraisal report, for a total monetary contribution of$803,250.00; and WHEREAS, Grantees will pay the City the public benefit in installments, as follows: (1) $267,750.00 upon the earlier of: (i) issuance of Design Review Board (DRB)approval or(ii) June 30, 2025; (2) $267,750.00 upon the earlier of (i) receipt a building permit to construct the project on Grantees' Parcels or(ii) September 30, 2025;and (3) $267,750.00 on or before December 31, 2025; and WHEREAS, in the event Grantees do not secure DRB approval by November 25, 2025 and the building permit for the construction of the project by May 25, 2026, subject to possible extensions which may be granted by the City Manager for good cause, at the discretion of the City Manager, the Easement shall be null and void; and WHEREAS, Grantees engaged BIRA and Grantees in their Letter of Intent, a copy of which is attached to the City Commission Memorandum as Exhibit "D", represent BIRA and Grantees' position, as follows: • BIRA acknowledges Grantees' right to develop the Property per current zoning rules and to seek to purchase the proposed Easement; • BIRA and Grantees are requesting that the public benefit associated with the purchase of the Easement benefit the entire Belle Isle community; and • BIRA and Grantees are requesting that the public benefit to be allocated as follows, subject to approval by the City Commission: • 69% in favor of Belle Isle; and • 31% in favor of Farrey Lane WHEREAS, although FERC, at its June 28, 2024 meeting, requested that BIRA be notified of the possible approval of the Easement, in that, BIRA is concerned with matters which could impact its neighborhood, BIRA is a voluntary neighborhood association and Grantees' Parcels are not governed by any homeowners' association covenants; as such, BIRA's consent to the proposed Easement is not legally required and allocation of the public benefits proffered by Grantees remains at the discretion of the City Commission; and WHEREAS, at the October 30, 2024 City Commission meeting, it was discussed that at a previous FERC meeting, Commissioner Laura Dominguez had made a request to FERC members to consider allocating $300,000.00 from the proposed public benefit towards the Belle Isle dog park, which request was reiterated at the October 30, 2024 City Commission meeting by Commissioner Dominguez, which recommendation was accepted by the members of the City Commission; and WHEREAS, at the October 30, 2024 City Commission meeting, the Mayor and City Commission, on first reading of the Resolution, voted to accept the recommendation of FERC at its June 28, 2024 meeting, and approve the Easement, subject to and conditioned upon Grantees: (1) securing all land use development approvals and other required regulatory approvals; and (2) delivering to the City a voluntary monetary public benefit in the amount of $803,250.00, with all of the funds allocated to the general fund, of which $300,000.00 was designated to be used toward the Belle Isle dog park project and the remainder of the funds to be used at the City's discretion; further, waiving, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition; and further, authorizing the City Manager to negotiate an Easement Agreement with Grantees, subject to approval by the City Commission at the second and final reading/public hearing of the Resolution; and WHEREAS, based upon the foregoing, and the fact that only the Grantees could benefit from the use of the proposed Easement Area, the City Manager recommends that the Mayor and City Commission waive, by a 5/7ths vote, the formal competitive bidding requirement, as permitted under Section 82-39(a) of the City Code, as being in the best interest of the City; and WHEREAS, pursuant to Section 82-40 of the City Code, Grantees are responsible for all costs associated with the purchase of the Easement including, without limitation, the appraisal; and WHEREAS, the City Manager recommends accepting the recommendation of FERC at its June 28, 2024 meeting, and waiving, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, and approving and authorizing the City Manager and City Clerk to execute an air rights Easement Agreement pursuant to section 82-37(a)(2) of the City Code, in the form attached to this Resolution as Exhibit "A", subject to and conditioned upon, Grantees: (1) securing all land use development approvals and all other required regulatory approvals; and (2) delivering to the City a voluntary monetary public benefit in the amount of $803,250.00, of which $300,000.00 is to be allocated toward the Belle Isle dog park project and the remainder of the funds to be allocated at the City's discretion. 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, on second reading, hereby accept the recommendation of the Finance and Economic Resiliency Committee, at its June 28, 2024 meeting, and waive, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, and approve and authorize the City Manager and City Clerk to execute an air rights Easement Agreement pursuant to Section 82-37(a)(2) of the City Code, in the form attached to this Resolution as Exhibit "A", among the City(Grantor) and MMS 7 Farrey, LLC (as to 50%) and Farrey LN DG Master Plan, LLC (50%), as tenants in common (Grantees), for use of a 20 foot aerial easement over a portion of the Farrey Lane right-of-way(Easement Area)adjacent to the properties owned by Grantees, located at 6 Farrey lane and 7 Farrey Lane(Grantees' Parcels), so that Grantees may construct a unified, multilevel single-family home, utilizing the Easement Area as a skybridge between Grantees' Parcels for the construction of three habitable connecting floors; said Easement Area consisting of a base elevation of 17.12 feet above the grade surface of Farrey Lane to an upper limit elevation of 65.56 feet, having approximately 36,301 cubic feet of air space between the elevations, subject to and conditioned upon, Grantees: (1) securing all land use development approvals and other required regulatory approvals; and (2)delivering to the City a voluntary monetary public benefit in the amount of$803,250.00, of which $300,000.00 is to be allocated toward the Belle Isle dog park project, and the remainder of the funds to be allocated at the City's discretion. PASSED and ADOPTED this ad day of if4✓141617 , 2024. ATTEST: ..A .....__.--aef.:i.e....,t___ / li Steven Meiner, Mayor NOV 2 2 2024 Rafael E. Granado, City Clerk s tt s 3coRrj�oRA'1ED, APPROVED AS TO Sponsored by Commissioner Joseph Magazine ..,/, •,.. ir 4 }is'•;. :'x,..••;.c_= FORM & LANGUAGE �" EXECUTION ci omey Dote EXHIBIT "A" This instrument prepared by and after recording return to: Joseph I. Pardo, Esq. Pardo Law PLLC 1205 Lincoln Road Miami Beach, FL 33139 (For Recorder's Use Only) GRANT OF EASEMENT FOR AIR RIGHTS This Grant of Easement for Air Rights (the "Easement") is made and entered into as of this_ day of , 2024, by the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation duly organized and existing under the laws of the State of Florida, having an address at 1700 Convention Center Drive, Miami Beach, Florida 331391"Grantor"), in favor of MMS 7 FARREY LLC, a Florida limited liability company as to 50% and Farrey Ln DG Master Plan, LLC, a Delaware limited liability company as to 50%, as Tenants in Common (jointly. "Grantee"). RECITALS A. MMS 7 FARREY LLC and FARREY LN DG MASTER PLAN LLC are each 50% Tenants in Common fee owners of real property located at 6 Farrey Lane and 7 Farrey Lane(collectively, the"Properties"),the legal description of which are attached hereto as Exhibit"A". B. The Farrey Lane right-of-way is dedicated by plat to Grantor as a public right of way, and this dedication also includes the air rights over the Farrey Lane right-of-way(the "Farrey Lane Riaht of Way"). C. Grantee desires to build a unified, multilevel single-family home on the Properties, in accordance with current land use regulations; said development requiring a skybridge connector over the portion of Farrey Lane right of way adjacent to the Properties in order to connect 6 Farrey Lane to 7 Farrey Lane and provide a skybridge of three levels of enclosed habitable space over the Farrey Lane Right-of-Way, having a total of approximately 1,841.57 square feet, which is anticipated to include a private balcony, decorative architectural features, a portion of a lap pool and roof terrace (the "Project"). D. After referral by the City of Miami Beach Commissioner, the City's Finance and Economic Resiliency Committee (FERC) approved the granting of an easement in connection with Grantee's development of the Properties, which easement shall not impede vehicular access through the Farrey Lane Right of Way and shall not convey or affect any floor area ratio on the Properties. E. Grantor has agreed to grant an easement to Grantee, for the use of all of Grantor's air rights within that volume of space above the portion of the Farrey Lane Right of Way between the Properties, having a base elevation of 17.12 feet NGVD above the grade surface of Farrey Lane Right-of-Way to an upper limit elevation of 65.56 feet, having approximately 36,301 cubic feet of air space between the elevations, as legally described in Exhibit "B" attached hereto and made a part hereof("Easement Area").for the sole purpose of the construction, use, and occupancy of a skybridge within the Easement Area, containing habitable connecting floors, as part of the development of the Project ("Skybridge Improvements"), subject to the terms and conditions set forth herein. The improvements to the Properties and the Skybridge Improvements shall collectively be referred to herein as the "Project Improvements"). F. At the October 30, 2024 City Commission meeting, the Mayor and City Commission, on first reading of the Resolution, voted to accept the recommendation of FERC at its June 28, 2024 meeting, and approve the Easement, subject to and conditioned upon Grantee: (1)securing all land use development approvals and other required regulatory approvals; and (2) delivering to the City a voluntary monetary public benefit in the amount of $803,250.00; further, waiving, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition; and further, authorizing the City Manager to negotiate an Easement Agreement with Grantee, subject to approval by the City Commission at the second and final reading/public hearing of the Resolution. G. On November 20, 2024, the Mayor and City Commission adopted Resolution No. , approving, on second reading, pursuant to a public hearing, this Easement and further clarifying the allocation of the public benefit,with$300,000.00 to be allocated toward the Belle Isle dog park project, and the remainder of the funds to be allocated at the City's discretion. NOW, THEREFORE, in consideration of the sum of Ten Dollars($10.00)and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Recitals. The above recitals are true and correct and by this reference are incorporated as if fully set forth herein. 2. Easement. Subject to the terms and conditions of this Easement, Grantor hereby grants, bargains and conveys to Grantee, for the use and benefit of Grantee and, its successors and assigns and its agents, employees and invitees a perpetual, exclusive easement in, through, over and across the Easement Area, along with a non-exclusive right of ingress and egress over and across the portions of the Farrey Lane Right of Way necessary to access the Easement Area for the construction and maintenance of the Skybridge Improvements, as provided herein. Grantor also hereby authorizes Grantee to construct the Skybridge Improvements, provided that they are consistent with the Design Review Board approval of same. Grantee shall exercise its easement rights hereunder without obstructing or interfering with the continued use of the Farrey Lane Right of Way by Grantor and/or the public as a dedicated public Page 2 of 21 right of way for pedestrian and vehicular travel, and utility services, except as permitted pursuant to a temporary right-of-way closure permit for any construction, repair or maintenance activities that temporarily obstructs, or otherwise requires temporary closure of, any portion of Farrey Lane Right-of- Way. 3. Consideration. As consideration and inducement for Grantor's grant of this Easement, Grantee shall pay to Grantor the amount of $803,250.00 ("Contribution") to be paid in installments as follows: (1) $267,750.00 upon the earlier of: (i)issuance of Design Review Board (DRB)approval or(ii) June 30, 2025; (2) $267,750.00 upon the earlier of(i)receipt a building permit to construct the Project Improvements or (ii) September 30, 2025; and (3) $267,750.00 on or before December 31, 2025. 4. Construction and Maintenance of the Properties. A. Grantor desires, and Grantee agrees that Grantee shall develop, design, permit, construct, use, maintain, repair and replace the Skybridge Improvements, or necessary portions thereof, so that same is at all times in good working order and condition and free of material defects, subject only to occasional interruption of service due to (i) ordinary wear and tear and use thereof; (ii) routine or extraordinary maintenance, repair or replacement; or (iii) events beyond the Grantee's reasonable control. Grantee shall have the right to select the contractor(s) of its choice in connection with all aspects of installation or construction, maintenance, repair and replacement of the Skybridge Improvements; provided, however, the contractor(s) shall be subject to prior approval of Grantor, which approval shall not be unreasonably withheld so long as the work is performed by contractor(s) with prior experience performing similar projects, with the requisite licenses to perform the work, and sufficient bonding capacity to obtain a performance and payment bond covering the value of such work. Grantee's contractor shall also furnish the City with evidence of the following construction insurance coverages: 1. Worker's Compensation Insurance for all employees of the contractor as required by Florida Statute 440. Employer's liability in an amount not less than $1,000,000. 2. Commercial General Liability on a comprehensive basis, including Contractual Liability, Products/Completed Operations, in an amount not less than $1,000,000 combined single limit per occurrence for bodily injury and property damage. City of Miami Beach must be shown as an additional insured with respect to this coverage. 3. Maintain in force until at least three(3)years after Final Completion of the Project coverage for Products and Completed Operations, including Broad Form Property Damage. 4. Excess/Umbrella Liability, in amount not less than $5,000,000 combined single limit, per occurrence for bodily injury and property damage. This coverage requirement will be at the discretion of the City of Miami Beach. Page 3 of 21 5. Automobile Liability Insurance covering all owned, non-owned and hired vehicles used in connection with the work, in an amount not less than $1,000,000 combined single limit per occurrence for bodily injury and property damage. City of Miami Beach must be shown as an additional insured with respect to this coverage 6. Professional (Design Errors & Omissions) Liability Insurance in an amount not less than $1,000,000 with the deductible per claim, if any, not to exceed 10% of the limit of liability. The policy must be endorsed to provide coverage for up to three (3) years after Project completion. The policy is to be on a primary basis if other professional liability is carried. All deductibles for insurance required in the Agreement are the responsibility of the contractor. A waiver of subrogation is required for the policies listed above. The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the contractor. All insurance policies required above shall be issued by companies authorized to do business under the laws of the State of Florida, with the following qualifications: The company must be rated no less than "A-" as to management, and no less than "Class V" as to financial strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City Risk Management Division. or The company must hold a valid Florida Certificate of Authority as shown in the latest"List of All Insurance Companies Authorized or Approved to Do Business in Florida" issued by the State of Florida Department of Insurance and are members of the Florida Guaranty Fund. Certificates will indicate no modification or change in insurance shall be made without thirty(30) days in advance notice to the certificate holder. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE 3rd FLOOR MIAMI BEACH, FL 33139 Page 4of21 B Grantee shall cause for plans and specifications to be prepared for any construction work related to the Skybridge Improvements, and shall be solely responsible for obtaining any and all governmental permits and approvals required in connection with the Skybridge Improvements (collectively, the "Permits"). C. After completion of any work by Grantee, Grantee shall, at its sole cost and expense, and with due diligence, restore the Farrey Lane Right of Way to the condition in which it existed immediately prior to the performance of such work. D. Grantee shall assume the responsibility, at its sole cost and expense, to maintain the Skybridge Improvements in a good and safe condition and to repair and replace same as necessary from time to time, all in accordance with the Permits and any and applicable regulations of the federal,state, County, City of Miami Beach Code of Ordinances, and any other regulation governing the Skybridge Improvements ("Applicable Laws"). E Grantee shall be solely responsible for, and shall bear any and all costs and expenses of, installation, maintenance, operation, utilities, taxes (including, without limitation, any ad valorem or other taxes or governmental charges that may be assessed in connection with this Easement and the Skybridge Improvements), insurance, repairs, and replacement or restoration work (including, without limitation, any replacement or restoration in the event of any casualty or as otherwise required in the normal and customary ownership and use of the Skybridge Improvements and this Easement)and any and all other costs and expenses, including any necessary relocation or undergrounding of existing utilities in conflict with the Skybridge Improvements, or any damage to the Farrey Lane Right of Way in connection in connection with the Grantee's installation and use of the Skybridge Improvements. F. Grantee assumes all risks in connection with the construction and use of the Skybridge Improvements at its sole cost and expense. The Grantor disclaims any and all implied warranties of merchantability and fitness, fitness for a particular purpose, intended use, workmanship or construction respecting the use of the Easement Area or the construction or use of the Skybridge Improvements. Grantor and its successors and assigns shall have no obligations with respect to the operation, use, maintenance, repair, replacement or restoration of the Skybridge Improvements, except to the limited extent provided in 5.A of this Easement and to the extent caused by the gross negligence or willful misconduct of Grantor and/or its representatives. G. Grantee shall, at all times, exercise diligent, good-faith efforts to: (a) avoid causing any damage to the Farrey Lane Right of Way; adversely affecting the safety or appearance of the Farrey Lane Right of Way; or causing any unreasonable interference with the use of the Farrey Lane Right of Way; and (b) minimize any disruption or inconvenience to Grantor and the public in the use and enjoyment of the Farrey Lane Right Page 5 of 21 of Way as a dedicated public right of way arising from, without limitation, lights, sounds, wireless frequencies, smoke, fumes, vapors, odors, droppings or any other objectionable discharges, or emissions, or nuisances of any kind therefrom. H. Grantee, at Grantee's sole cost and expense, agrees to clean up any litter from the Farrey Lane Right of Way resulting from Grantee's use of the Easement Area and restore any damage to the Farrey Lane Right of Way that is caused by or arises from the use and occupancy of the Easement Area. 5. Grantor's Continued Use and Maintenance of the Farrev Lane Right of Way. Except with respect to the Grantee's exclusive rights over the Easement Area, the Grantor reserves unto itself, and its successors, assigns, and its authorized invitees, agents, employees, contractors, and licensees, and without the need for any notice to Grantee,the perpetual right and privilege to (i) use the Farrey Lane Right of Way for the purposes of providing the general public with an unrestricted right of passage, ingress, egress, access to, and reasonable use of the Farrey Lane Right of Way; (ii) maintain, repair and replace, and/or install improvements within the Farrey Lane Right of Way, including surface or subsurface improvements, as Grantor may deem necessary from time to time, at its sole and absolute discretion; and (iii) grant third- parties providing utility services with the right to use and occupy the Farrey Lane Right of Way for the purpose of providing any such utilities, including, but not limited, to water, sewer, stormwater, electrical, gas, telecommunications, telephone and cable, at Grantor's sole and absolute discretion. Notwithstanding anything to the contrary herein, Grantor's issuance, in its regulatory capacity, of any right of way or other permit to a third-party(such as utility providers), shall not be construed as an assumption of any liability for the acts or omissions of that third-party, and Grantor shall not be responsible for the acts or omissions of third-parties not contracted by Grantor(such as utility providers). A. If the Skybridge Improvements are damaged during any maintenance, repair or other work performed by Grantor or its employees, agents or contractors within the Farrey Lane Right of Way, the Grantor shall work with the Grantee to make all necessary repairs to the Skybridge Improvements, at Grantor's sole cost and expenses. Notwithstanding anything to the contrary herein, Grantor's issuance, in its regulatory capacity of any right of way or other permit to a third-party(such as utility providers), shall not be construed as an assumption of any liability for the acts or omissions of that third-party, and Grantor shall not bee responsible for the acts or omissions of third-parties not contracted by Grantor(such as utility providers). B. Notwithstanding anything herein contained to the contrary, this Section 5 shall not be construed or deemed to relieve Grantee of its obligations to maintain, repair, replace and/or restore the Skybridge Improvements. Page 6 of 21 6. Term. The term of this Easement shall not commence and shall be of no force or effect unless and until Grantee submits its application for a building permit for the construction of the Project Improvements, and once in effect, shall be perpetual unless terminated upon mutual agreement of the parties, in writing. This Easement shall not merge with any deed to the Properties or any part thereof, and shall survive for the term described herein. For the avoidance of doubt, the decision to proceed with the construction of the Skybridge Improvements is within the Grantee's sole discretion. In the event that Grantee: (1) elects not to proceed with the use of the Easement Area prior to securing the building permit for the construction of the Skybridge Improvements; or (2) Grantee does not secure DRB approval by November 25, 2025 and the building permit for the construction of the Skybridge Improvements by May 25, 2026, subject to possible written extensions which may be granted by the City Manager for good cause, at the discretion of the City Manager, the Easement shall be null and void, the Grantee shall be entitled to a refund of any portion of the Contribution received by the Grantor, and the parties agree to promptly execute a written release of the Easement and record said release in the Public Records of Miami-Dade County, Florida. The Compensation shall be deemed earned by Grantor and non-refundable upon Grantee securing the building permit for the construction of the Skybridge Improvements. In the event that Grantee fails to commence construction of the Skybridge Improvements within three (3) years from issuance of the building permit for the Skybridge Improvements or otherwise abandons construction of the Project,this Easement shall become null and void and the parties agree to promptly execute a written release of the Easement and record said release in the Public Records of Miami- Dade County, Florida. Subsequent to the construction of the Project Improvements, Grantee shall have the right to demolish and remove the Skybridge Improvements, provided that all required Permits and approvals are obtained from the City. In the event that the Skybridge Improvements are demolished with the expectation of future development thereon, this Easement shall not automatically terminate and shall only be voidable in Grantee (or Grantee's successor's) reasonable discretion and in accordance with Applicable Laws. In the event that the Skybridge Improvements are demolished without the expectation of future development, this Easement shall terminate and the parties agree to promptly execute a written release of the Easement and record said release in the Public Records of Miami-Dade County, Florida. In the event that Grantee fails to commence construction of a future development within three (3)years, the Easement shall terminate and the parties agree to promptly execute a written release of the Easement and record said release in the Public Records of Miami-Dade County, Florida. 7. Successors and Assigns. This Easement shall bind, and the benefit thereof shall inure to the respective successors and assigns of the parties hereto. Any transferee of the Properties, or any portion thereof, shall automatically be deemed, by acceptance of the title thereto, to be subject to all of the terms of this Easement. Page 7 of 21 8. Limitation. It is the intention of the parties hereto that this Easement shall be limited to and utilized for the purposes expressed herein and only for the benefit of the persons and Properties named herein. The roadway surface of the Farrey Lane Right of Way shall continue to be used for appropriate pedestrian and vehicular access and activity, except as necessary during times of installation, maintenance, repair or replacement of the Skybridge Improvements by Grantee, or maintenance, repair or replacement of the Farrey Lane Right of Way or utilities located therein. 9. Indemnification. A. Grantee shall indemnify, defend and hold harmless Grantor, its officers and employees, from any costs, liabilities, claims, losses, and damages (including, without limitation, reasonable attorneys' fees and disbursements at the trial level and all levels of appeal), whether suit is instituted or not, relating to death of or injury to persons, or loss of or damage to property, arising out of, or incurred in connection with, this Easement, or with the use and/or operation of the Easement Area or Skybridge Improvements by Grantee, and/or its officials employees, contractors, and agents; and including, but not limited to, any violation by the Grantee, and/or its officials, employees, contractors, and agents, of any laws, rules, regulations or ordinances regarding hazardous materials, hazardous wastes, hazardous substances, solid waste, or pollution, whether now existing or hereafter enacted or promulgated, as they may be amended from time to time ("Environmental Laws"); any presence, release, or threat of release of hazardous materials, hazardous wastes, hazardous substances, solid waste or pollution at, upon, under, from or within the Easement Area by Grantee, and/or its officials, employees, contractors; and agents; the failure of Grantee, and/or its officials, employees, contractors, and agents, to duly perform any obligations or any clean-up required to be taken by Grantee under any Environmental Laws; liability for personal injury or property damage; and any fines, penalties, and punitive damages, or any fines or assessments incurred by or claimed against Grantor and arising out of the failure of Grantee, and/or its officials, employees, contractors, and agents, to comply with Environmental Laws in connection with the use of the Easement by Grantee, and/or its officers, employees, contractors, and agents. For the avoidance of doubt,the liability in this Section 9 as to Environmental Laws shall not apply to Grantee unless the liability is caused by the actions of Grantee and/or its officials, employees, contractors, and agents. B. Grantee shall also, as part of the indemnification provided to Grantor pursuant to this Section 9, defend any and all claims asserted against Grantor resulting from, arising out of, or incurred in connection with the existence and/or use of the Easement and the Easement Area or Skybridge Improvements by Grantee, and/or its officials, employees, contractors, and agents. Grantee shall be entitled to select counsel of Grantee's choice to defend claim; provided however, that such counsel shall first be approved by Grantor's City Attorney, which approval shall Page 8 of 21 not be unreasonably conditioned, withheld, or delayed; and, provided further, that the Grantor shall be permitted, at its cost and expense, to retain independent counsel to monitor the claim proceeding. The duty to defend set forth in this subsection shall be severable and independent from the indemnity obligations otherwise set forth in this Section 9, to the extent that if any other provisions and/or subsections of this Section 9 are deemed to be invalid and/or unreasonable, this duty to defend provision shall remain in full force and effect. C. Notwithstanding anything contained in Section 9 to the contrary, Grantee shall not be obligated or liable to Grantor, or any third parties, for any costs, liabilities, expenses, losses, claims or damages, with respect to claims resulting from the gross negligence, recklessness or willful misconduct of Grantor or its officials, employees, contractors, and agents. D. The indemnity and defense obligations set forth in this Section 9 including, without limitation, the provisions of its subsections, shall survive the expiration of the Term or any termination of this Easement regarding any and all costs, liabilities, claims, losses, and damages (including, without limitation, reasonable attorneys'fees and disbursements at the trial level and all levels of appeal), whether suit is instituted or not, relating to death of or injury to persons, or loss of or damage to property, resulting from, arising out of,or incurred in connection with the existence and use of the Easement and the Easement Area by Grantee and/or its officials, employees, contractors,and/or agents during the Term of the Easement. For purposes of example only and without limiting the generality of the foregoing, costs, liabilities, claims, losses and/or damages which are unknown or unaccrued as of athe date of the expiration of the Term or other termination of the Easement could include,without limitation, latent construction defects and/or environmental remediation claims. 10. Insurance. Grantee shall maintain insurance sufficient to cover Grantee's liability exposure with respect to its construction, use or operation of the Skybridge Improvements,which insurance shall include Commercial General Liability Insurance, including Products-Completed Operations and Contractual Liability, in an amount not less than $1,000,000 combined single limit per occurrence, and $2,000,000 in the aggregate, for bodily injury and property damage, and Workmen's Compensation as required by Applicable Law. Grantee shall name the Grantor as an additional named insured on the Certificates of Insurance for Commercial General Liability Insurance, and upon request of the Grantor, shall provide the City with a certificate of insurance evidencing the foregoing coverages. 11. Default. A. Default By Grantee. In the event of a default by Grantee under the terms of this Easement, Grantor shall give written notice to Grantee, specifying the nature of such default. Grantee shall have a period of thirty(30 days following receipt of said notice in which to remedy the default (or such longer time as may be necessary and reasonable, provided Grantee shall have commenced a cure within said 30-day period and is diligently and continuously prosecuting same);failing which Grantor shall have the right to enter upon the Easement Area, for the limited purpose of Page 9 of 21 effecting the required repair or maintenance of the Pedestrian Bridge Improvements. Notwithstanding the foregoing, if the default is of such a nature that an emergency situation arises, constituting an unsafe or unsanitary condition, the period of cure of such default shall be accelerated to a period of time which is reasonable in light of the nature of the emergency. All costs incident to curing a default by the Grantee under this subsection shall be the sole responsibility and obligation of, and accordingly, shall be borne by, the Grantee. B. Default by Grantor. In the event of a default by Grantor, Grantee shall give written notice to Grantor, specifying the nature of such default. Grantor shall have a period of thirty (30) days following receipt of said notice in which to remedy the default (or such longer time as may be necessary and reasonable, provided Grantor shall have commenced a cure within said 30-day period and is diligently prosecuting same). Notwithstanding the foregoing, if the default is of such a nature that an emergency situation arises constituting an unsafe or unsanitary condition, the period for cure of such default shall be accelerated to be a period of time which is reasonable in light of the nature of the emergency. All costs incident to curing a default by Grantor relating to an emergency situation shall be borne by the Grantor. C. Any sums due and owing under this Easement by Grantor or Grantee shall be due and owing within thirty(30)days from receipt of the invoice. Any unpaid sums shall accrue interest at the interest rate of eighteen percent (18%) per annum or the highest interest rate authorized by Applicable Law, whichever is less. 12. No Liens. Grantee shall not cause liens of any kind to be placed against the Easement Area or any portion thereof. The right, title and interest of the Grantor in the Easement Area shall not be subject to liens or claims of liens for improvements made by Grantee. Nothing contained in this Easement shall be deemed or construed to constitute the consent or request of the Grantor, express or by implication or otherwise, to any contractor, subcontractor, laborer or materialman for the performance of any labor or the furnishing of any materials for any specific improvement of,alteration to,or repair of the Easement Area, or any part thereof, nor as giving Grantee, any mortgagee or lessee of the Grantee or Properties any right, power or authority to contract for, or permit the rendering of, any services or the furnishing of materials that would give rise to the filing of any lien, mortgage or other encumbrance against Grantor's interest in the Easement Area, or any part thereof, or against assets of the Grantor. In the event Grantee fails to remove any lien or desires to contest any lien placed against the Easement Area or any portion thereof, Grantee shall indemnify, defend and hold harmless the Grantor against all loss, expense or damages in connection therewith, in accordance with Section 9 of this Easement. Notwithstanding the foregoing, Grantee's rights under this Easement may be part of the collateral for any mortgage encumbering the Properties. 13. Inspection. It is hereby agreed that any City official has the right to enter and investigate the Easement Area at any time to verify compliance with the conditions of this Easement and any Applicable Laws. Page 10 of 21 14. Enforcement. An action to enforce the terms and conditions of this Easement may be brought at law or in equity against any party or person violating or attempting to violate any provision of this Easement or provisions of any Permits or Applicable Laws, either to restrain violations or to recover damages. In the event it becomes necessary for any party to defend or institute legal proceedings to enforce the terms, covenants and conditions of this Easement, the prevailing party in such litigation shall recover from the other party all costs and expenses incurred or expended in connection therewith, including, without limitation, reasonable attorney's fees and costs, at all levels. 15. Venue and Jurisdiction: WAIVER OF JURY TRIAL. This Easement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms and conditions herein, exclusive venue for the enforcement of same shall be Miami- Dade County, Florida. This Easement shall be governed by, and construed in accordance with, the laws of the State of Florida, both substantive and remedial, without regard to principles of conflict of laws. BY ENTERING INTO THIS EASEMENT, GRANTOR AND GRANTEE EXPRESSLY WAIVE ANY RIGHTS EITHER PARTY MAY HAVE TO A TRIAL BY JURY OF ANY CIVIL LITIGATION RELATED TO, OR ARISING OUT OF, THIS EASEMENT. 16. No Joint Venture. Nothing in this Easement shall be construed to create a joint venture, partnership, tenancy in common, or joint tenancy relationship between the Grantor and the Grantee, nor shall this Easement render either party liable for the debts or obligations of the other party. 17. Interpretation. No provision of this Easement will be interpreted in favor of, or against,any of the parties hereto by reason of the extent to which any such party or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof. 18. Counterparts. This Easement may be executed in any number of counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute a single document. 19. Notices. Any notices required or permitted to be given under this Easement shall be in writing and shall be deemed to have been given if delivered by hand, sent by recognized overnight courier (such as Federal Express) or mailed by certified or registered mail, return receipt requested, in a postage prepaid envelope, and addressed as follows: If to Grantee at: MMS 7 Farrey LLC 1521 ALTON ROAD, No. 894 MIAMI BEACH, FL 33139 Page 11 of 21 With a copy to: Joseph I. Pardo, Esq. Pardo Law PLLC 1205 Lincoln Road, Suite 211 Miami Beach, Florida 33139 If to Grantor: City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: City Manager With a copy to: City of Miami Beach, Florida 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: City Attorney Notices personally delivered or sent by overnight courier,or mailed in accordance with the foregoing shall be deemed given upon receipt. The terms of this Section shall survive any termination of this Easement. 20. Severability. If any clause or provision of this Easement is deemed illegal, invalid or unenforceable under present or future laws effective during the term hereof, then the validity of the remainder of this Easement shall not be affected thereby and shall be legal, valid and enforceable. 21. Entire Agreement: Recordation. This Easement constitutes the entire agreement between the parties hereto relating in any manner to the subject matter of this Easement, and shall be recorded by Grantee in the Public Records of Miami-Dade County, Florida, at its sole cost and expense. No prior agreement or understanding pertaining to same shall be valid or of any force or effect. This Easement may not be amended, modified or terminated except by a written instrument executed by the Grantor (through its City Manager) and Grantee, and which is recorded in the Public Records of Miami-Dade County, Florida. All provisions of this Easement, including the benefits and burdens of the same, are covenants that run with the land, are not intended to be executory in nature, and shall be binding upon, and shall inure to the benefit of, the parties and their respective heirs, legal representatives, successors and assigns. SIGNATURE PAGES TO FOLLOW Page 12 of 21 IN WITNESS WHEREOF, the parties hereto have executed this Easement as of the date first set forth above. WITNESSES: GRANTOR: CITY OF MIAMI BEACH, FLORIDA, a municipal corporation of the State of Florida By: Eric T. Carpenter, P.E., City Manager Sign Print Name Address: Sign Print Name Address: ATTEST: By: Rafael E. Granado, City Clerk STATE OF FLORIDA )ss COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me by means of( ) physical presence or( ) online notarization on this day of , 20_this day of , 2024, by Eric T. Carpenter, P.E., as City Manager, and Rafael E. Granado, as City Clerk, of the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation of the State of Florida, on behalf of the CITY OF MIAMI BEACH, FLORIDA. They are personally known to me or produced valid Florida driver's licenses as identification. Notary Public, State of Florida My commission expires: Page 13 of 21 WITNESSES: GRANTEE MMS 7 FARREY LLC, a Florida limited liability company Name: Title: Sign Print Name Address: Sign Print Name Address: STATE OF )ss: COUNTY OF The foregoing instrument was acknowledged before me this _ day of , 2024, by as of MMS 7 Farrey LLC, a Florida limited liability company. He is personally known to me or produced valid driver's licenses as identification. Notary Public, My commission expires: Page 14 of 21 WITNESSES: GRANTEE FARREY LN DG MASTER PLAN, LLC, a Delaware limited liability company Name: Title: Sign Print Name Address: Sign Print Name Address: STATE OF )ss: COUNTY OF The foregoing instrument was acknowledged before me this _ day of , 2024, by as of Farrey Ln DG Master Plan, LLC, a Delaware limited liability company. He is personally known to me or produced valid driver's licenses as identification. Notary Public, My commission expires: Page 15 of 21 EXHIBIT"A" [legal description of 6 Farrey Lane and 7 Farrey Lane] Lot 6, SECOND SECTION BELLE ISLE VILLAS, according to the Plat thereof, recorded in Plat Book 42, at Page 100, of the Public Records of Miami-Dade County, Florida Folio No. 02-3233-003-0060 Address: 6 Farrey Lane, Miami Beach, Florida 33139 Lot 7, SECOND SECTION BELLE ISLE VILLAS, according to the Plat thereof, recorded in Plat Book 42, at Page 100, of the Public Records of Miami-Dade County, Florida Folio No. 02-3233-003-0070 Address: 7 Farrey Lane, Miami Beach, Florida 33139 Page 16 of 21 EXHIBIT"B" [legal description of Easement Area] Page 17 of 21 EXHIBIT "B" SKETCH AND LEGAL DESCRIPTION / 20 FOOT AERIAL EASEMENT FOR CONSTRUCTION OF HABITABLE IMPROVEMENTS A 20 FOOT AERIAL EASEMENT LYING IN THAT PORTION OF FARREY LANE, OF SECOND SECTION BELLE ISLE VILLAS, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 42, PAGE 100, PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA; THE HORIZONTAL LIMITS OF SAID EASEMENT BEING NORTH DESCRIBED AS FOLLOWS: SCALE: 1"=30' COMMENCE AT THE SOUTHWEST CORNER OF LOT 7, OF SAID SECOND SECTION BELLE ISLE VILLAS, THEN RUN N 83'19'30" E ALONG THE SOUTH LINE OF SAID LOT 7, FOR A DISTANCE OF 7.47 TO THE POINT OF BEGINNING OF A 20 FOOT AERIAL EASEMENT; THEN CONTINUE ALONG SAID SOUTH LINE OF SAID LOT 7 FOR A DISTANCE OF 31.96 FEET TO A POINT; THEN RUN S 06'40'30" E ALONG A LINE THAT IS AT RIGHT ANGLES FROM THE AFOREMENTIONED COURSE, FOR A DISTANCE OF 20 FEET TO A POINT ON THE NORTH LINE OF LOT 6; THEN RUN S 83'19'38" W ALONG THE NORTH LINE OF SAID LOT 6, FOR A DISTANCE OF 29.26 TO A POINT; THEN RUN N 14'21'19" W, FOR A DISTANCE OF 20.18 FEET TO THE POINT OF BEGINNING. THE VERTICAL LIMITS OF THE ABOVE EASEMENT ARE 657-SQUARE FEET± AND 36,301-CUBIC FEET± OF AIR RIGHTS BETWEEN AN ELEVATION OF 17.12-FEET (NGVD29), LOWER LIMIT, TO AN ELEVATION OF 65.56-FEET (NGVD29), UPPER LIMIT. BEARINGS SHOWN HEREON ARE BASED ON THE NORTHERLY RIGHT OF WAY LINE OF FARREY LANE TO BEAR N 8319'30" E, ASSUMED. LOT•7 LOT•a EAST UNE OF LOT 7 POB SE CORNER E7� SOUTH UNE OFLOT7 NB3'19'30' OFLOT7 •err"" POC ` ,1N�•1s'ao s��` y FARREYLAIVE �'R/W Z:• nERIb-E iSaM0NT A 13 0 SW CORN - , ',AE RIANWA 4 OFLOT71 pa li 5 ( Qq o N .'sp`19'3s W 2-1126/i GEN D: NW CORNER NORTH LINE P.B. =PLAT BOCK LOT B OF LOT 6 PG PACE R=RADIUS A=PRC LENGTH CENTRAL ANGLE WEST LINE LOT-6 =CENf1ERUNE OF LOT 8 DATE: 09/13/2024 THIS IS NOT A SURVEY. NOT VAUD WITHOUT THE ORIGINAL SIGNATURE AND THE RAISED SEAL OF A FLORIDA SURVEYOR AND MAPPER. I, NICOLAS DEL VENTO, HEREBY CERTIFY THAT THIS LOT•5 SKETCH AND LEGAL DESCRIPTION IS TRUE AND CORRECT 1 TO THE BEST OF MY KNOWLEDGE AND BELIEF AS 1 ' RECENTLY DRAFTED UNDER MY DIRECTION AND MEETS THE MINIMUM TECHNICAL STANDARDS SET FORTH BY THE FLORIDA STATE BOARD OF SURVEYORS AND MAPPERS IN CHAPTER 5J-17 FLORIDA ADMINISTRATIVE CODE PURSUANT TO SECTION 472.027 FLORIDA STATUE. Digitally signed Nicolas by Nicolas Del Vento /��.3 DEL j'\ JOB# 240711339 H111FlCg1t CF AUCIDWAT.DN!:LB-102.3 Del Vento Date:2024.10.03 f 4 NICK B ,,c IS .'bO 13:05:24-04'00' , tNNBY:Survey Pros, Inc. (• tweeds + DRAM 4348 SW 74TH AVENUE, MIAMI, FL. 33155 NICOLAS DEL VENTD T�o1i�`1bJ CAD FILE: MMS 7 FARREY Tel: 305.767.6802stveicA SHEET 1 OF 1 PROFESSIONAL SURVEYOR & MAPPER www_survey-pros.o o m STATE OF FLORIDA LIC. #6945 '"—•^" Mortgagee Joinder and Consent to Grant of Easement for Air Rights City National Bank of Florida ("Mortgagee"), as owner and holder of that certain Mortgage, Assignment of Rents and Security Agreement by and between Farrey LN DG Master Plan, LLC, a Delaware limited liability company ("Mortgagor") and Mortgagee, recorded on November 3, 2021, in Official Records Book 32828, at Page 3065, of the Public Records of Miami-Dade County, Florida (the "Mortgage"), as modified by that certain 06/24 Mortgage Modification and Future Advance Agreement, recorded in Official Records Book 34295, at Page 352 and further secured by that certain UCC-1, recorded in Official Records Book 34295, at Page 359, all of the Public Records of Miami-Dade Records, hereby joins in and consents to the granting of this Grant of Easement for Air Rights (the "Easement") in favor of the Mortgagor under the Easement, all in accordance with the terms and conditions set forth in the Easement. Mortgagee agrees that in the event Mortgagee or any other party shall obtain title to any of the Mortgagor's Properties (as defined in the Easement) through foreclosure or deed-in-lieu of foreclosure, the Easement shall be superior in interest to the Mortgage and be binding upon the entity obtaining title as the then owner of Mortgagor's Properties. City National Bank of Florida By: Print Name: Print Name: Title: Address: Address: By: Print Name: Address: State of County of The foregoing instrument was acknowledged before me by means of( ) physical presence or ( ) online notarization on this day of , 20_ by as on behalf of City National Bank of Florida, on behalf of said company. He or she is ( ) personally known to me or, ( ) produced a driver's license as identification. Notary Public—State of Print Name; My Commission Expires: Page 18 of 21 Mortgagee Joinder and Consent to Grant of Easement for Air Rights City National Bank of Florida ("Mortgagee"), as owner and holder of that certain Mortgage, Assignment of Rents and Security Agreement, dated October 25, 2021, by and between Farrey LN DG Master Plan, LLC, a Delaware limited liability company ("Mortgagor")and Mortgagee, recorded on November 3, 2021, in Official Records Book 32828, at Page 3065, of the Public Records of Miami-Dade County, Florida, in the original principal amount of $720,000.00, as modified by that certain 06/24 Mortgage Modification and Future Advance Agreement, recorded in Official Records Book 34295, at Page 352, increasing the principal amount of the loan to $723,016.27 (collectively, the "Mortgage") and further secured by that certain UCC-1 Financing Statement, recorded in Official Records Book 34295, at Page 359, of the Public Records of Miami- Dade County Florida, hereby joins in and consents to the granting of this Grant of Easement for Air Rights (the "Easement") in favor of the Mortgagor under the Easement, all in accordance with the terms and conditions set forth in the Easement. Mortgagee agrees that in the event Mortgagee or any other party shall obtain title to any of the Mortgagor's Properties (as defined in the Easement) through foreclosure or deed-in-lieu of foreclosure, the Easement shall be superior in interest to the Mortgage and be binding upon the entity obtaining title as the then owner of Mortgagor's Properties. City National Bank of Florida By: Print Name: Print Name: Title: Address: Address: By: Print Name: Address: State of County of The foregoing instrument was acknowledged before me by means of( ) physical presence or ( ) online notarization on this day of , 20_ by as on behalf of City National Bank of Florida, on behalf of said company. He or she is ( ) personally known to me or, ( ) produced a driver's license as identification. Notary Public—State of Print Name; My Commission Expires: Page 19 of 21 Mortgagee Joinder and Consent to Grant of Easement for Air Rights City National Bank of Florida ("Mortgagee"), as owner and holder of that certain Mortgage, Assignment of Rents and Security Agreement, dated December 2, 2021, by and between MMS 7 Farrey LLC, a Florida limited liability company ("Mortgagor") and Mortgagee, recorded on December 13, 2021, in Official Records Book 32899, at Page 3537, of the Public Records of Miami-Dade County, Florida, in the original principal amount of$2,650,000.00 (the"Mortgage"), hereby joins in and consents to the granting of this Grant of Easement for Air Rights (the "Easement") in favor of the Mortgagor under the Easement, all in accordance with the terms and conditions set forth in the Easement. Mortgagee agrees that in the event Mortgagee or any other party shall obtain title to any of the Mortgagor's Properties (as defined in the Easement) through foreclosure or deed-in-lieu of foreclosure, the Easement shall be superior in interest to the Mortgage and be binding upon the entity obtaining title as the then owner of Mortgagor's Properties. City National Bank of Florida By: Print Name: Print Name: Title: Address: Address: By: Print Name: Address: State of County of The foregoing instrument was acknowledged before me by means of( ) physical presence or ( ) online notarization on this day of , 20_ by as on behalf of City National Bank of Florida, on behalf of said company. He or she is ( ) personally known to me or, ( ) produced a driver's license as identification. Notary Public—State of Print Name; My Commission Expires: Page 20 of 21 Mortgagee Joinder and Consent to Grant of Easement for Air Rights Fryd Mortgage, LLC, a Florida limited liability company ("Mortgagee"), as owner and holder of that certain Mortgage and Security Agreement, dated August 23, 2022, by and between MMS 7 Farrey LLC, a Florida limited liability company ("Mortgagor") and Mortgagee, recorded on August 24, 2022, in Official Records Book 33351, at Page 371, of the Public Records of Miami-Dade County, Florida (the "Mortgage") and further secured by that certain Assignment of Leases and Rents, dated August 23, 2022, and recorded on August 24, 2022, in Official Records Book 33351, at Page 391, of the Public Records of Miami-Dade County, Florida, and further secured by that certain UCC-1 Financing Statement, recorded on August 24, 2022, in Official Records Book 33351, at Page 399, hereby joins in and consents to the granting of this Grant of Easement for Air Rights (the "Easement") in favor of the Mortgagor, all in accordance with the terms and conditions set forth in the Easement. Mortgagee agrees that in the event Mortgagee or any other party shall obtain title to any of Mortgagor's Properties (as defined in the Easement) through foreclosure or deed-in-lieu of foreclosure, the Easement shall be superior in interest to the Mortgage and be binding upon the entity obtaining title as the then owner of Mortgagor's Properties. Fryd Mortgage, LLC By: Print Name: Print Name: Title: Address: Address: By: Print Name: Address: State of County of The foregoing instrument was acknowledged before me by means of( ) physical presence or ( ) online notarization on this day of , 20_ by as on behalf of *****, on behalf of said company. He or she is ( ) personally known to me or, ( ) produced a driver's license as identification. Notary Public—State of Print Name; My Commission Expires: F:Attotorg/Public Works/Forms/Utility Easement Template 1.24.24 Page 21 of 21 Resolutions - R7 G MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: November 20, 2024 2:00 p.m. Second Reading Public Hearing TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ON SECOND READING, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS JUNE 28, 2024 MEETING, AND WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(A) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE SERVED BY WAIVING SUCH CONDITION, AND APPROVING AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AN AIR RIGHTS EASEMENT AGREEMENT PURSUANT TO SECTION 82-37(A)(2) OF THE CITY CODE, IN THE FORM ATTACHED TO THIS RESOLUTION AS EXHIBIT "A", AMONG THE CITY (GRANTOR) AND MMS 7 FARREY, LLC (AS TO 50%) AND FARREY LN DG MASTER PLAN, LLC (50%), AS TENANTS IN COMMON (GRANTEES), FOR USE OF A 20 FOOT AERIAL EASEMENT OVER A PORTION OF THE FARREY LANE RIGHT-OF-WAY (EASEMENT AREA) ADJACENT TO THE PROPERTIES OWNED BY GRANTEES, LOCATED AT 6 FARREY LANE AND 7 FARREY LANE (GRANTEES' PARCELS), SO THAT GRANTEES MAY CONSTRUCT A UNIFIED, MULTILEVEL SINGLE-FAMILY HOME, UTILIZING THE EASEMENT AREA AS A SKYBRIDGE BETWEEN GRANTEES' PARCELS FOR THE CONSTRUCTION OF THREE HABITABLE CONNECTING FLOORS; SAID EASEMENT AREA CONSISTING OF A BASE ELEVATION OF 17.12 FEET ABOVE THE GRADE SURFACE OF FARREY LANE TO AN UPPER LIMIT ELEVATION OF 65.56 FEET, HAVING APPROXIMATELY 36,301 CUBIC FEET OF AIR SPACE BETWEEN THE ELEVATIONS, SUBJECT TO AND CONDITIONED UPON, GRANTEES: (1) SECURING ALL LAND USE DEVELOPMENT APPROVALS AND OTHER REQUIRED REGULATORY APPROVALS; AND (2) DELIVERING TO THE CITY A VOLUNTARY MONETARY PUBLIC BENEFIT IN THE AMOUNT OF $803,250.00, OF WHICH $300,000.00 IS TO BE ALLOCATED TOWARD THE BELLE ISLE DOG PARK PROJECT AND THE REMAINDER OF THE FUNDS TO BE ALLOCATED AT THE CITY'S DISCRETION. RECOMMENDATION The Administration recommends adopting the Resolution. BACKGROUND/HISTORY At its March 13, 2024 meeting, the City Commission, at the request of Commissioner Joseph Magazine, approved a referral (C4 J)to the Finance and Economic Resiliency Committee(FERC) to discuss the possible conveyance of an air rights easement to MMS 7 Farrey, LLC (as to 50%) and Farrey Ln Dg Master Plan, LLC (50%) (collectively, "Grantees"), as owners of the properties located at 6 Farrey Lane and 7 Farrey Lane ("Grantees' Parcels"), to allow for the connection, with habitable space, of Grantees' Parcels. As detailed in the Letter of Intent submitted on behalf of the Grantees, attached hereto as Exhibit"D", and the Concept Plan, attached hereto as Exhibit "A", the air rights will allow for unified construction on the adjacent properties which are separated Page 1379 of 1993 by the public Farrey Lane right-of-way, without the conveyance of any floor area to either of the Grantees' Parcels. At its May 24, 2024 meeting, FERC members opened the item for discussion. The Public Works Department presented the appraisal results and favorable recommendation of the air rights easement request, provided that the applicant contributed a public benefit in the total monetary amount of $803,250.00, based upon an appraisal secured by the City Administration. Inquiries arose from FERC members on whether the surrounding property owners were in favor of the air rights easement (it was commented that last year, the Belle Isle Residents Association, Inc.("BIRA") was not in favor of this initiative when presented with a similar discussion at Committee). Before proceeding with a motion, FERC members requested that staff gather feedback from the neighboring property owners and come back the following month. At its June 28, 2024 meeting, FERC members opened the item for discussion. As part of the committee memorandum, the Grantees' representative provided letters of support from neighboring Farrey Lane property owners, a copy of which are attached hereto as Exhibit "F". FERC members made a motion to proceed to the City Commission, provided that Grantees engaged BIRA members with respect to Grantees' proposed air rights easement. Pursuant to Section 82-37(a)(2) of the City Code, Grantees are seeking an aerial easement ("Easement"), with an easement area consisting of a base elevation of 17.12 feet above the grade surface of Farrey Lane to an upper limit elevation of 65.56 feet, having approximately 36,301 cubic feet of air space between the elevations ("Easement Area"), as more particularly described in the sketch and legal description attached to the Resolution attached hereto, to allow for the construction of a skybridge,connecting Grantees' Parcels,with habitable space,at Grantees'sole cost and expense. The City has previously approved pedestrian bridge connector projects, such as the connectors for the Tides and the Betsy Hotel. In this case, however, the Grantees will be developing three levels of habitable improvements within the skybridge connector, having a total of approximately 1,841.57 square feet, which will include a private balcony, decorative architectural features, a portion of a lap pool and roof terrace. Grantees will be responsible for the costs associated with the construction and maintenance of the improvements within the Easement Area as well as any ad valorem real estate taxes which could be assessed in connection with said Easement. Pursuant to Sections 82-38 of the City Code, any proposed sale or lease of City-owned land is required to be analyzed from a Planning perspective so that the City Commission and the public are fully apprised of all conditions related to the proposed sale or lease. On October 2, 2024, the City's Planning Department prepared a Planning analysis, a copy of which is attached hereto as Exhibit"B", finding that the proposed Easement is consistent with the criteria in Section 82-38 of the City Code, as follows: PLANNING ANALYSIS: The proposed Easement is consistent with the criteria in Section 82-38 of the City Code, as outlined below: 1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan. Consistent — The Easement will not impede the use of the right of way as it exists today, as it will remain open below 17.2 feet NGVD. The use will be for residential purposes, which are consistent with the Comprehensive Plan. 2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of Page 1380 of 1993 necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed,the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. Consistent—No negative impacts are anticipated by the proposal. The Easement will not impede the functioning of the alley, nor will it result in additional development rights for either of the adjacent properties. Additionally, the following is noted: • The alley will continue to remain open at the ground level. • The existing alley terminates on the west, at the Standard Hotel property, and does not provide any through connectivity. • The proposed Easement will not increase traffic as vehicular and pedestrian access will be maintained. The use of the air rights above the alley will be to provide amenities to the proposed buildings on the adjacent lots, allowing both lots to be utilized as a singly residential building, thereby reducing the potential number of units that would be built. No additional floor area is proposed to be transferred between the adjacent lots, and no increase in peak hour traffic volumes is expected. • No noise level impacts are anticipated from the proposed Easement, as the use of the air- rights will be for residential purposes. • The proposed Easement is not expected to impact adopted levels of service for public infrastructure. Compliance with Water, Sewer, Stormwater, and Parks will be determined as part of the building permit process. • The proposed Easement will not impact utilities, such as electric, water, sewer, and stormwater transmission, because the alley will remain open at ground level. 3. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the City's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life. Consistent - This proposal expands the City's revenue base by adding untaxed public property to the tax rolls. In addition, the applicant is proposing to pay the City for the Easement. 4. A determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project. Consistent - The surrounding neighborhood will not be negatively affected and the location of the Easement is not expected to block views to Biscayne Bay. No environmental intrusions will be created by the proposal. 5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Consistent — The Easement will not affect the parking or infrastructure needs of adjacent properties. Surrounding properties are not dependent on the area of the Easement for parking, and the ground level will continue to function as is it does today. 6. Such other issues as the City Manager or his authorized designee, who shall be Page 1381 of 1993 the City's Planning Director, may deem appropriate in analysis of the proposed disposition. Not applicable - The Planning Department has no other issues it deems appropriate to analyze for this proposal. Pursuant to Section 82-39(b) of the City Code, an appraisal was conducted and received on March 19, 2024 (Attached) in order to form an opinion of the market value of the aerial Easement. Based on the analysis contained in the report, the fee simple market value of the subject air rights and land value concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion Air Rights Fee Simple Estate February 16, 2024 5505,000 Land Value Fee Simple Estate February 16, 2024 $850,000 Compered by(BRE PUBLIC BENEFIT: Grantees and the City Administration have reached agreement as to the monetary value of the Easement in the form of a public benefit, as follows: $595,000 + 35% (median range of 20-50%) range above market value as suggested on the appraisal report, attached hereto as Exhibit "C", for a total monetary contribution of $803,250.00. Grantees will pay the City the public benefit in installments, as follows: (1) $267,750.00 upon the earlier of: (i) issuance of Design Review Board (DRB) approval or (ii) June 30, 2025; (2) $267,750.00 upon the earlier of (i) receipt a building permit to construct the project on Grantees' Parcels or (ii) September 30, 2025: and (3) $267,750.00 on or before December 31, 2025. In the event Grantees do not secure DRB approval by November 25, 2025 and the building permit for the construction of the project by May 25, 2026, subject to possible extensions for good cause, at the discretion of the City Manager, the Easement shall be null and void. BIRA's FAVORABLE RECOMMENDATION OF AIR RIGHTS EASEMENT AND RECOMMENDATION FOR ALLOCATION OF THE PUBLIC BENEFIT, SUBJECT TO CITY COMMISSION APPROVAL: Grantees contacted BIRA and Grantees in their Letter of Intent, attached hereto as Exhibit "D", represent BIRA and Grantees' position, as follows: • BIRA acknowledges Grantees' right to develop Grantees' Parcels per current zoning rules and to seek the proposed Easement. • BIRA and Grantees are requesting that the public benefit resulting from Grantees' prospective Easement should benefit the entire Belle Isle community; and • BIRA and Grantees are requesting that the public benefit be allocated as follows, subject to the approval of the City Commission: • 69% in favor of Belle Isle; and • 31% in favor of Farrey Lane Although FERC, at its June 28, 2024 meeting, requested that BIRA be notified of the possible approval of the Easement, in that, BIRA is concerned with matters which could impact its neighborhood, BIRA is a voluntary neighborhood association and Grantees' Parcels are not governed by any homeowners' association covenants. As such, BIRA's consent to the proposed Page 1382 of 1993 Easement is not legally required and allocation of the public benefits proffered by Grantees remains at the discretion of the City Commission. At the October 30, 2024 City Commission meeting, the City Clerk read the title for the record and a discussion was held regarding the voluntary monetary contribution or public benefit, in the amount of$803,250.00, that would be received from the Grantees as part of the aerial easement request to the City. At a previous FERC meeting, Commissioner Laura Dominguez had made a request to FERC members to consider allocating $300,000.00 from the proposed public benefit towards the Belle Isle dog park. This request was reiterated at the October 30, 2024 City Commission meeting by Commissioner Dominguez. This request was accepted and a motion was passed by City Commission members to have all of the funds allocated to the general fund, with $300,000.00 to be used towards the Belle Isle dog park and the remainder of the funds to be used at the City's discretion. Pursuant to Section 82-40 of the City Code, Grantees are responsible for all costs associated with the purchase of the Easement including, without limitation, the appraisal. Based upon the foregoing, and the fact that only the Grantees could benefit from the use of the proposed Easement Area, the Administration recommends that the Mayor and City Commission waive, by a 5/7ths vote, the formal competitive bidding requirement, as permitted under Section 82-39(a) of the City Code, as being in the best interest of the City. FISCAL IMPACT STATEMENT No fiscal impact. CONCLUSION The Administration recommends accepting the recommendation of the Finance and Economic Resiliency Committee, at its June 28, 2024 meeting, and waiving, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, and approving and authorizing the City Manager and City Clerk to execute an air rights Easement Agreement pursuant to section 82- 37(a)(2) of the City Code, in the form attached to the Resolution as Exhibit "A", subject to and conditioned upon, Grantees: (1) securing all land use development approvals and all other required regulatory approvals; and (2)delivering to the City a voluntary monetary public benefit in the amount of$803,250.00, of which $300,000.00 is to be allocated toward the Belle Isle dog park project and the remainder of the funds to be allocated at the City's discretion. Applicable Area South Beach Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? Yes No Department Public Works Sponsor(s) Commissioner Joseph Magazine Page 1383 of 1993 Condensed Title 2:00 p.m. 2nd Rdg, Approve Conveyance of Air Rights Easement, MMS 7 Farrey Lane. (Magazine) PW 5/7 Page 1384 of 1993 Farrey Lane Concept Package for Air R4ghts over ROW_240124 RIP C ROYAL PALM C 004P4V-1 , --`-4 , ., ..,,.. kt' . ..- .. ..- - 6 &7 Farrey Lane Concept Design ... ,,t 1., , t .t. •! 114 Ifo rli .,., . , ,Ill L...--7.......7,3 . : , 3.--. ,,.;..,, -s,,,i, • ! - . ' Air Rights Appraisal over ROW . . .,, . . . , .,. . 0 41111. 1 II aka.... ... CO 41011.• . 10.... • '....... CO ',lib ... * -4111111110. . 1. . _. , _•- ._- , CA) Aso , ilt. :..*Ari. • ..) ir• * .1. . . — - -..• -..,..., ' .,. ...t., :xi- :-Ir-•--- 'A% _ , . . - - . , ,... viNi....010,..• . ., • , .. ,. . % --- 11011PF 11111P%— . t ' —#4011;11t. '. 1.:"1 ' ,..ori ../ ",..., ' A., '44101 Ia. ' 1 N ., , • , ' . -.. . ,. . • . Oa' I• ... .. "...... . :::-..• 44. ....L.„ ., Farrey Lane Concept Package!or Air Rlghts over ROW_240124 R P CFit,Jos Over . Wo,l-Hlylu ul wsY • .1 M 1 4. i R t ,.;4.y !, o�w,. ;4 . ',1!2 il,'#' lei . , ..',),,,e !I•P`14%..4„,.0:_' . 5. r.11 I /` i _ • r}._ .4 A •=6 it. IR't' l tri , AIt. •_ •, 4411 . Y [' � • r ca ism . Irit P. ' aid . ti r -_ __ :Ii. .rr."' . ................. •1 . .r .... . . ..„ \eck. ___ _________ , •• ,. ., , • .,. t !.. ..„repo, 1 •-, '`..x.10.... "" rceli III ---- 41141, lam • " S .. t I 1• .I I i t•� Yen•flan w.Y , Legend r _ _ Property In woe I.._..I, BoOpe over pubic Rlpturol•w•y . . .‘' • North Belle Isle -6 & 7 Farrey Lane Project Location Map Farrey Lane Concept Package for Air Rights over ROW_240124 RIPIC 4 ,J„.,bort was. 01 r i 't y :"� I r t 11111\ (D i �_4, '�' it 'i i .I i t i ; 1 r,.. op, `, OD , m. we \'' OD I .c.o...,ci:n.• If r 0Aat.a•ker i iF. �,... fq"' 1 <r t I — : "-irnleimor IRE IL. ..: i ----' ler 1 : rl ir III I' vw. ti..-DiII > N CC)CD 1 �i >< t %0 1 4, ....a• 0.. g (Ifs CA) le ol e.-li re f if -,s,! I 7 r vrtf ta.e.hereft In 4 J' 0 } 7 _1If Icy f I t w Legend i i i i.. •-- Property Ur* L._._._ -_ Property Setbacks "1 J Bndge over putec Right-or-way 6& 7 Farrey Lane Floor Plan - Level 00 Faney Lane Concept Package for Air Rights over ROW_240124 RIPIC �tl.cy G•.fi a 7.w.uu�+ � — - µodd, SC;..FwMi 1 -..-.i�.•—.� -� . .:__. _..1 7o a it• �.1... u,.......e.v.m..._,T. . 1 imm,....... ...........• r, ,-), (D t..... w_ ww IF"I I I ' 1 f 1 [:- . A .....4. , 1(4 0.../... e • . . CDil 1 11,. .. ,,:. C.,. Wary . -----JU f i 1 ii j j/' Legend' — --_ .y�.�/ ._._ Property Line L..........–.----- • ._._._.—.. –•- -— Properly Setbacks __., Enclosed habitable Space over Pubaa RgntciWay 431.76 sq h rtgPrivate Balcony over Public Right•od-wsy 74.74 sq 4 6 & 7 Fa rrey Lane F.' . , Decor Wows Arct«ect,„at Feahaes(o hat»taOte) Pot ac Right-of-way ,so 2D sq ft Floor Plan - Level 01 level Dl Grand Told 65670,q It Farrey Lane Concept Package for Pur Rights over ROW_240124 RIR C 14 .rb a,.. r ED 1 , : , i 7 Ow MAW. I I •7 "k" - iji ar..ls�r 'ow�eW. CD I.1 1 =0.:j w ,Cave'.,,," 1 ok .I , ,:..., , ;tea ur ave , f" •. CA) SI lr " fe.----------I -- -J I L__-- .T__. �._._.70_�._ ij I I , / 1 e o i % 1 i I !� ,..sgand 1 ...'"' --•— Propsny Lew -—Properly Senesces I Enclosed Msb able Space over Pt.tftc Rph1-ol-way 431.76 sq ft 0.T, Pnvate Balcony over Puck Right-of-way 14 74 eq ft 6 & 7 Farrey Lane c Daco,Il,ve Architectural Fenton.,(non nWilabkj over PotUc%Pt -way 150-20 sq R Floor Plan - Level 02 Level 02Grand Iota( 65670sgIt Farrey Lane Concept Package for Air Rights over ROW_240124 RIPIC r PUQY 171 n/HAI ...4......".'....... r—— Yrsia in CD Y' j1 I Cm. .1J 'n 1 f r j1111!_ P..W.� I i iCD I ro.:~ tenor G.o le.x. ew.w; ..1. IA et* i, etttwl i Ca) i i I i r'----77:x. - 4.. _ I i I O i ' �o '�._ ."Se.2 s S{.T� ':,- II" i Ot ort. > I CO ..411111•111110110* e =1 a _ - �1>.t nh�..n rrr.n e..rlF -— —r i j I i' _ T _i I - --- I ii 1 ilt,rrrtmeeHrrl.-J I L.-.-._._l_, _. __._.-. ._.-._.___.-.-'-'-_.-.-._I-j i I 1 i ;r..tr fr.%eo.gi.. i � i I i ii i % i i ;/ i i Legend , __ _ wormer Leie -______._-_____..._____..__�__-____.__�___.______ •— Property S.roecks J Open b Decker Sky Habitable Roo(Deown Public Right-of-way191.01 so n u � I Pool over Public Right-of-way 233.33 sq It 6& 7 Farrey Lane I' Decorative Arch M ecturai Features(non habbled )over Pubic Rpnr• • n vpy (D3 a3 so Floor Plan - Level 03 Level 03 Grand Total 529 1 7 eq n Farrey Lane Corcept Package for Air R,ghts over ROW 240124 RIPIC i 7.3 n) i e. i co CID 1 q .1/44.1 rasa. i CO I I 1 i '$r I 1 .; — , O i �y�. w o.. ; � ( i J w 1 f' +�N' Y. __ 1 .14.. , S COCD i ' 9`� r 1- I +river rem permnrnr^ernes.`_—"..�r • I . _- i i_._. . .. _.__.-.-__._._. . .71.011 ._ � i , / i 1 f i j ' i �i j ...i j i -.i 6& 7 Farrey Lane Floor Plan- Level 04 Farrey Lane Concept Package for Air Rights over ROW_240124 RIP C Farrey Lan,Air Rights over ROW Description of Spaces Levet 01 level 02 Level 03 Total Enclosed Halnlabte Space 431.76 431 76 863.52 Private Balcony 74 74 74.74 149.48 Decorative Ai oftectu/al Feature 150.20 150.20 103.83 404.23 Root Deck Open to Sky 191 01 191.01 • Pool 233.33 233.33 Grand Total 656 7 656.7 520.17 1041.67 01 LID CD W CD N 0 CD (D W Farrey Lane Concept Package for Air Rights over ROW 240124 R PIC pa ,:'bn*. i raw s ,.47 4 111'1 II •-•-• 0 C r • t ________+________+_....,__________,,+...... `- I.I it - 4 I CO I 1 I tillniala at rut... ig ihipuiplumilkal .:,�:----- _____—___/_—___—_--i.--------►----}I --: -----. --r)1 -------{--i— CD w • .4.�- ti I I I j I t I Il - -1 -- --------=: ,e ' I I -.,.„. 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(1 -� • �I �a _ I• �' y li 1 srR'' - •:,wYA x r 4 illr �r mat! a,/• 3.et►� i K�" 1== -- .4(41111Milig, • III mei liao MIN .' - :--7"-- it:: ..,, .. . ateill.• � W ,' ;a North Belle Isle - txisting N Aerial Perspective 01 Farrey Lane Concept Package for Air Rights over ROW_240124 . *cr RIPIC • .yt r.. y r ...•..;• _ . y r r 11 � i • ., ,tl`1 I/' r. - i. .,...or.ca^y Belli •r-1.';r L. .1p•,• '- ... .".� ; fit , .j` �`-}•if,: , ..�... tt! v�. i � - _+wr.��„i _ a - •� - Be+la i' '.usury Aparnir„' 06&07 Fa rev Lane'- ChaDad o1 r�.,. rHx,w» bukJS''4'. - ��.,. _ - - i .! TfOK. ' (�� - ,,*"fir ' .. q1► ^ :, . —.� 1� -.. 1 �,; ' i ~* ..r te �. .^„ f •' . a. 1 " ST ` 1 use, �� OJ W - r-, yam__ ,. . . • 1 1. .irk I a' /-' J. f/ .f1. t 44'II.. r• •.ae. . ' Y. r • 1 II It' C - 011# ,- All'. .. rr � ym 1111 . 111:1111111111 • rrev laneirt.""'4416. ♦ •t: '‘Y .. l.Ir'• . �51 •: t Awe Wacerbort �. tY, .- M• - Natr I'S +. /✓` .. " h yy"'. - Homes �' i/ .'j �'�, �i • ..jR $ ; 11i�'ilii -'�h. 441.°' :NW, Badge Over P,JWC R•gtYN•.wlaY `• y .r M o, ii, ,e f _.._..-_... -_---•—_ Century lane . -} F re W terFron Hom •North Belle Isle - Future Development Aerial Perspective 01 4/11//11111/11118111r 44111111111111111111111111111.1.1111111111ak 4I4 §. Farrey Lane Concept Package for Air Rights over ROW_240124 a RSP 0 S art . 2 K. 't . ' eell.r Isla Luxury Apartments ,stand Apartments 06 R 07 Far ey.ane t I h.J c'the Venetian r‘..+' PJeP eiS 041 k 11 Century Lane thy J•ea, ew u ant.yy '� al10W, '' I Century i � v..1,_4‘....T.:.,,,,. ..q... .1 8 F � a s. ,.,, „., aw Ap. 'r + r r l • - • � r OW II OW 4004i II 2 • r 1 . t= �"'- :"00411.04,4""""- -17- ..#...r yt , T L FFA+ -.. ow • r ► - 1 j� r .Ir l _ , • _ ter• I ,p a 1 " enrage Or•r Public R.gMol-wey - .t .ah, North Belle Isle txlttng Aerial Perspective 02 41 x :r. "qIIIIIIMIIIIIIIIIIIIIIIIIIIIIIMk Farrey Lane Concept Package for Air Rights over ROW_240124 f K • •. 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'. - ''' * 'Wow ....,4t . i ..... —. .......0. .... .. .—.......-................„ 1 t Century lane Future Waledront Homes Ftrtur Walerfron Horne . .. . r ' , ^ North Belle Isle Future Development Aerial Perspective Elevation /'tA, IBE AC H City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov PLANNING DEPARTMENT MEMORANDUM TO: Eric Carpenter, City Manager FROM: Thomas R. Mooney, AICP� 2 Planning Director DATE. October 2, 2024 SUBJECT: Planning Analysis of Proposed Air Rights Easement— Between 6 and 7 Ferrey Lane BACKGROUND Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of City-owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease. The subject proposal relates to a request for an aerial easement over the Farrey Lane Alley, located between the private properties at 6 and 7 Farrey Lane. The proposed aerial easement is for the construction of a sky bridge to connect two residential structures, and as proposed would consist of 657 square feet and be located between 17.12 feet NGVD and 65.56 feet NGVD, for a volume of 36, 301 cubic feet. The skybridge is proposed to provide enclosed habitable space, a private balcony, decorative architectural features, as well as a pool and roof terrace over the public right-of-way. The following is an analysis of the proposal based on the criteria delineated in Section 82-38 of the City Code. ANALYSIS 1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan. Consistent — The easement will not impede the use of the right of way as it exists today, as it will remain open below 17.2 feet NGVD. The use will be for residential purposes, which are consistent with the Comprehensive Plan. 2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed, the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. Consistent—No negative impacts are anticipated by the proposal. The easement will not impede the functioning of the alley, nor will it result in additional development rights Page 1400 of 1993 Planning Analysis of Proposed Air Rights Easement-Between 6 and 7 Ferrey Lane October 2, 2024 Page 2 of 3 for either of the adjacent properties. Additionally, the following is noted: • The alley will continue to remain open at the ground level. • The existing alley terminates on the west, at the Standard Hotel property, and does not provide any through connectivity. • The proposed aerial easement will not increase traffic as vehicular and pedestrian access will be maintained. The use of the air rights above the alley will be to provide amenities to the proposed buildings on the adjacent lots, allowing both lots to be utilized as a singly residential building, thereby reducing the potential number of units that would be built. No additional floor area is proposed to be transferred between the adjacent lots, and no increase in peak hour traffic volumes is expected. • No noise level impacts are anticipated from the proposed aerial easement, as the use of the air-rights will be for residential purposes. • The proposed aerial easement is not expected to impact adopted levels of service for public infrastructure. Compliance with water, sewer, stormwater, and parks will be determined as part of the building permit process. • The proposed aerial easement will not impact utilities, such as electric, water, sewer, and stormwater transmission, because the alley will remain open at ground level. 3. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the city's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life. Consistent -This proposal expands the City's revenue base by adding untaxed public property to the tax rolls. In addition, the applicant is proposing to pay the City for the easement. 4. A determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project. Consistent - The surrounding neighborhood will not be negatively affected and the location of the easement is not expected to block views to Biscayne Bay. No environmental intrusions will be created by the proposal. 5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Consistent-The air rights easement will not affect the parking or infrastructure needs of adjacent properties. Surrounding properties are not dependent on the area of the easement for parking, and the ground level will continue to function as is it does today. Page 1401 of 1993 Planning Analysis of Proposed Air Rights Easement-Between 6 and 7 Ferrey Lane October 2, 2024 Page 3 of 3 6. Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition. Not applicable - The Planning Department has no other issues it deems appropriate to analyze for this proposal. CONCLUSION The proposed aerial easement is consistent with the applicable criteria delineated in Section 82-38 of the City Code, and as more specifically described herein. The proposed easement is not expected to result in negative impacts for the surrounding area. The ground level of the affected area would continue to serve in he same manner, as utility, vehicular, and pedestrian access will continue to be provided. TRM/RAM T:\Agenda\2024\9 October 2024\PIanning\Aerial Easement-7 Farrey Lane-PLANNING ANALYSIS.docx Page 1402 of 1993 CBRE VALUATION & ADVISORY SERVICES • AP • hAISAL REP T 6 & 7 FARREY LANE - AIR RIGHTS MIAMI BEACH , FLORIDA 33139 CBRE FILE NO . CB24US009353 - 1 CLIENT : CITY OF MIAMI BEACH , PUBLIC WORKS DEPARTMENT CBRE VALUATION & ADVISORY SERVICES CBRE 777 Brickell Ave. Ste. 1 100 Miami,FL 33131 T (305)381-6472 www.cbre.com Date of Report: March 19, 2024 Mr. Jose (Joe) Gomez, Director CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 RE: Appraisal of: 6 & 7 Farrey Lane - Air Rights Miami Beach, Miami-Dade County, Florida CBRE, Inc. File No. CB24US009353-1 Dear Mr. Gomez: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject property comprises 657-square feet and 36,301-cubic feet of air rights between 17.12-feet NGVD for the proposed bottom of the sky bridge structure and 65.56-feet NGVD for the top of a proposed single family residential structure. The proposed sky bridge over the Farrey Lane alley is intended to conned 6 Farrey Lane to 7 Farrey Lane and provide enclosed habitable space, private balcony, decorative architectural features, a pool and roof terrace over the public right-of-way. As such, the subject property is a strategic candidate for acquisition and assemblage by the abutting owner of Lots 6 & 7 Farrey Lane and a premium in the range of 20% to 50% above market value could be warranted depending on first or last piece of the puzzle in the assemblage process or location within a land constrained submarket. Because there are severely limited "arm's length" comparable sales of linear strips, alleys and public rights-of-way necessary for a reasonable & supportable valuation process, we have applied the "across the fence" (ATF) valuation methodology. In theory, ATF is applicable when undevelopable sites with limited marketability can be joined to an adjacent parcel and can legally & physically assume the adjacent parcel's highest& best use and unit value. Based on the analysis contained in the following report, the market value of the subject air rights and fee simple land value comprising surface, sub-surface & air rights are concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion Air Rights Fee Simple Estate February 16, 2024 $595,000 Land Value Fee Simple Estate February 16, 2024 $850,000 Compiled by CBRE c 2023 CBRE, Inc. Page 1404 of 1993 March 19, 2024 Page 2 The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES A Stuart Lieberman, MAI Vice President Cert Gen RZ1074 www cbre.com/stLart.lieberman Phone: (305) 381-6472 Email: stuart.heberrnan.: cbre.corn 2023 CBRE, Inc. CBRE BRE Page 1405 of 1993 Certification Certification We certify to the best of our knowledge and belief: 1 . The statements of fad contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. Stuart Lieberman, MAI has not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice. 9. Stuart Lieberman, MAI has made a personal inspection of the exterior of the property that is the subject of this report. 10. No one provided significant real property appraisal assistance to the persons signing this certification. 11.The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 12.The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 13.As of the date of this report, Stuart Lieberman, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. 14.The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the State of Florida. _ Stuart Lieberman, MAI Cert Gen RZ1074 c 2023 CBRE, Inc. I CBRE Page 1406 of 1993 Subject Photographs Subject Photographs 6 & 7 Farrey Lane -Air Rights ::i'F a.re,La.., 'Mn:3.•301 •. sl'39 1 e1 '• , j, a a > • - �. 70 'clip.:.c., . , tf.,, - - 0 ••• • Earth ' -.-, ... 4 Aerial View ii '= 2023 CBRE, Inc. CBRE Page 1407 of 1993 Subject Photographs • - i4 . sr WA ANIMINNMIn f ,��y ,.:A s !.,1'. / . + , , 1.11.1 ,r • ''u a -1 '..,.41.1rrtua : 1� --.v= , ter,'''" ..' ► f ...;,... __ o,..„, _ , s. 7.„..mor_____: Zrr.. Illtir- 7- , _ Ait •� , y � M `stmaere"' .' :_ _ i�""- _ 1 _-- ^� -. .",i'.-.-. Photo 1 - Farre Lane Alle Lookin• West Photo 2 - Farre Lane Alle Lookin• East F 1 t I:,... , ,.. , _ . ., .4,, Ai _ ter $ Photo 3 - FPL Utilit Photo 4 - 6 Farre Lane As Is L - _ - , , � • rrt!i' ft _t. - .. - - • r } } • �...2. • ,•'4111191Plft r — _ - — — -- - - 1 -amu! . Photo 5 - 7 Farrey Lane As Is Photo 6 - 7 Farre Lane As Is c 2023 CBRE, Inc "` CBRE Page 1408 of 1993 Subject Photographs S r c.=-, !s <-•tee,` _ .4**:#110/.....-7...1 - •—,—..._ r=_1.4 Photo 7 - Bisca ne Ba View NW Photo 8 - Bisca ne Ba View North - 4 w, i - llii 4 - -_ ..�`�.;� .� Photo 9 - Bisca ne Ba View NE Photo 10 - Seawall Ca. & Boat Dock -'i lr- 1.- 1 3Y • -t_ $. ice:__T-�___ c • * �wr '"' iiiiiiit Atm 4111 Photo 11 - Farrey Lane Looking South Photo 12 - Farrey Lane Looking North Iv 2023 CBRE, Inc. CBRE Page 1409 of 1993 Executive Summary Executive Summary Property Name 6 & 7 Farrey Lane -Air Rights Location 6 & 7 Farrey Lane Miami Beach, Miami-Dade County, FL 33139 Parcel Number(s) 02-3233-003-0060,02-3233-003-0070 Client City of Miami Beach, Public Works Department Highest and Best Use As If Vacant Single or multi-family residential uses As Improved Obsolete vacation villa Property Rights Appraised Fee Simple Estate Date of Inspection February 16, 2024 Estimated Exposure Time 3 - 12 Months Estimated Marketing Time 3 - 12 Months Primary Land Area - Air Rights 0.02 AC 657 SF Zoning RM-1, Residential Multi-Family, Low Intensity Buyer Profile Developer VALUATION Total %of Value Per SF Land Value 5850,000 100% 51,294.35 Market Value of the Air Rights On February 16, 2024 Cost Approach Not Applicable Sales Comparison Approach 5595,000 70% $906.05 Income Approach Not Applicable CONCLUDED MARKET VALUE Appraisal Premise Interest Appraised Date of Value Value Air Rights Fee Simple Estate February 16, 2024 $595,000 Land Value Fee Simple Estate February 16, 2024 $850,000 Compiled by CBRE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities • The subject property is situated on an exclusive island community with celebrity resident neighbors, unrestricted, deep water ocean access and unobstructed view amenity from the north bank of Belle Isle. • The subject zoning permits single or multi-family residential uses up to 5-stories. • The subject location is in proximity to the South Beach resort community, and the downtown Miami CBD and Brickell Financial District. • The South Florida and Miami Beach luxury residential market is very active as high net worth individuals, celebrities, domestic & foreign investors, custom home builders, "star" architects and developers seek out waterfront lots for development opportunities. • Long term submarket transformation as aging properties continue to be renovated and-or redeveloped into more contemporary and functional land uses. c 2023 CBRE, Inc. v CBRE Page 1410 of 1993 Executive Summary Weaknesses/ Threats • The subject property location is impacted by climate change and sea rise. • Commercial real estate market conditions have deteriorated at the macro level. The significant recent increase in the cost of capital and reduced volume of transaction activity is impacting price discovery and creating an increase in uncertainty. Increasing interest rates and subdued economic growth will continue to weigh on commercial real estate fundamentals and investment transaction volumes. This creates a higher degree of uncertainty in general, though the impacts may vary by market and asset class/type. MARKET VOLATILITY We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short-to-medium term. Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions. It is important to note that the conclusions set out in this report are valid as at the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. CURRENT ECONOMIC CONDITIONS At its January 2024 meeting, the Federal Reserve held the federal funds rate at a range of 5.25% to 5.50% and indicated it will continue reducing its balance sheet by $95 billion per month. The Fed removed language from its policy statement about further tightening but stated it needs more confidence inflation "is moving sustainably toward 2.00%" before considering cuts. Rising real interest rates will be a headwind for the economy in coming quarters; however, CBRE expects the U.S. economy will remain resilient with growth averaging 1.6% for the year. While opinions vary on future economic issues, the general market consensus at the time of this appraisal is the anticipation of moderating inflation as higher interest rates cool demand. Tighter lending conditions and a weakening economy will keep capital markets activity subdued and reduce leasing demand in the short to medium term. Amid this uncertain and dynamic environment, investment market performance will be uneven across property types. C 2023 CBRE, Inc. VI CBRE Page 1411 of 1993 Executive Summary EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is defined as "an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions." ' • None noted. HYPOTHETICAL CONDITIONS A hypothetical condition is defined as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis." 2 • None noted. OWNERSHIP AND PROPERTY HISTORY The Farrey Lane alley that includes the subject property is vested to the City of Miami Beach, a municipal government. As previously noted, the abutting owner of 6 & 7 Farrey Lane is proposing a sky bridge over the Farrey Lane alley that is intended to connect 6 Farrey Lane to 7 Farrey Lane and provide enclosed habitable space, private balcony, decorative architectural features, a pool and roof terrace over the public right-of-way. The abutting property owner and ownership history of the properties on both sides of the alley and abutting the subject property segment, is summarized as follows: 1 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) 2 The Appraisal Foundation, USPAP, 2024 Edition (Effective January 1, 2024) vii C BRE 2023 CBRE, inc. Page 1412 of 1993 Executive Summary OWNERSHIP SUMMARY Item 6 Farrey Lane 7 Farrey Lane Current Ownership Owner: Farrey LN DG Master Plan LLC MMS 7 Farrey LLC Seller: 6 Farrey Lane,LLC Farrey Tales LLC Purchase Price: $1,854,000 $5,300,000 Transaction Date: October 26,2021 December 3,2021 Sale in Last 3 Years2: Yes Yes Legal Reference: O.R. Book/Page: 32828/3063 O.R. Book/Page: 32899/3535 County/Locality Name: Miami-Dade Miami-Dade Buyer/Seller Relationship Type: Arm's length and reasonable Arm's length and reasonable At/Above/Below Market: Comments: Prior Sale History Buyer: 6 Farrey Lane,LLC Rene Gonzalez Seller: Ana Gazarian&Eugenio Torres Munguia Miguel Angel Diego Verastegui Purchase Price- $1,100,000 S1,435,000 Transaction Date: July 25,2021 March 7,2014 Legal Reference- O.R. Book/Page: 32630/2654 O.R.Book/Page: 29061/749 Current Listing Currently Listed For Sale: Yes Listing Price: $13,247,000 Listing Date: July 6,2023 Comments: 6&7 Farrey Lane including approved plans to build a 9,125 SF luxury 3-story single-family home with a rooftop terrace&bay view. Compiled by CBRE The abutting ownership of 6 & 7 Farrey Lane assembled both sites for a total of $7,154,000 in October & December 2021 and controls a total of 7,314-square feet, which equates to $978.12 per square foot of site area, excluding the subject alley. We also note, the active listing for 6 & 7 Farrey Lane is priced at $13,247,000 or $1,811.18 per square foot of site area and reportedly includes approved site plans for a 3-story, 9,125-SF single family residence with roof top terrace. However, the abutting owner's interest in redevelopment and connecting the two-parcels via a sky bridge over the municipal owned alley is subject to the purchase of the air rights that are the subject of this report. Furthermore, as part of this appraisal engagement, we are aware that the abutting landowner/developer has a strategic interest in acquiring the subject property for a high value, luxury residential development. CBRE is unaware of any arm's length ownership transfers of the property within three-to-5-years of the date of appraisal. EXPOSURE/MARKETING TIME Current appraisal guidelines require an estimate of a reasonable time period in which the subject could be brought to market and sold. This reasonable time frame can either be examined historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure time always precedes the date of value, with the underlying premise being the time a property would have been on the market prior to the date of value, such that it would sell at its appraised value as of the date of value. On a prospective basis, the term marketing time is most often v"' C.2023 CBRE, Inc. CBRE Page 1413 of 1993 Executive Summary used. The exposure/marketing time is a function of price, time, and use. It is not an isolated estimate of time alone. In consideration of these factors, we have analyzed the following: • exposure periods for comparable sales used in this appraisal; • exposure/marketing time information from the PwC Real Estate Investor Survey; and • the opinions of market participants. The following table presents the information derived from these sources. EXPOSURE/MARKETING TIME DATA Exposure/Mktg. (Months) Investment Type Range Average Comparable Sales Data 1.0 - 21.0 8.6 Local Market Professionals 3.0 - 12.0 7.5 CBRE Exposure Time Estimate 3 - 12 Months CBRE Marketing Period Estimate 3 - 12 Months Various Sources Compiled by CBRE ix CBRE C.2023 CBRE, Inc. Page 1414 of 1993 Table of Contents Table of Contents Certification Subject Photographs ii Executive Summary v Table of Contents x Scope of Work 1 Area Analysis 6 Neighborhood Analysis 11 Site Analysis 21 Zoning 34 Tax and Assessment Data 37 Highest and Best Use 38 Land Value 40 Value Divided Between Surface, Sub-Surface & Air Rights 45 Assumptions and Limiting Conditions 47 ADDENDA Land Sale Data Sheets Legal Description Client Contract Information Qualifications c 2023 CBRE, Inc. X CBRE Page 1415 of 1993 Scope of Work Scope of Work This Appraisal Report is intended to comply with the real property appraisal development and reporting requirements set forth under Standards Rule 1 and 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered, and analysis is applied. INTENDED USE OF REPORT This appraisal is to be used by the client for internal decision making and negotiations with a potential buyer/developer and no other use is permitted. CLIENT The client is City of Miami Beach, Public Works Department. INTENDED USER OF REPORT This appraisal is to be used by City of Miami Beach, Public Works Department. No other user(s) may rely on our report unless as specifically indicated in this report. Intended users are those who an appraiser intends will use the appraisal or review report. In other words, appraisers acknowledge at the outset of the assignment that they are developing their expert opinions for the use of the intended users they identify. Although the client provides information about the parties who may be intended users, ultimately it is the appraiser who decides who they are. This is an important point to be clear about: The client does not tell the appraiser who the intended users will be. Rather, the client tells the appraiser who the client needs the report to be speaking to, and given that information, the appraiser identifies the intended user or users. It is important to identify intended users because an appraiser's primary responsibility regarding the use of the report's opinions and conclusions is to those users. Intended users are those parties to whom an appraiser is responsible for communicating the findings in a clear and understandable manner. They are the audience. RELIANCE LANGUAGE Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE will not be responsible for 3 Appraisal Institute, The Appraisal of Real Estate, 15'h ed. (Chicago: Appraisal Institute, 2020), 40. c 2023 CBRE, Inc. CBRE Page 1416 of 1993 Scope of Work any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. PURPOSE OF THE APPRAISAL The purpose of this appraisal is to develop an opinion of the market value of the subject property air rights. DEFINITION OF VALUE The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows: The most probable price which a properly should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 INTEREST APPRAISED The value estimated represents Fee Simple Estate as defined below: Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 5 Leased Fee Interest - The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires.6 Leasehold Estate - The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. 4 12 CFR, Part 34, Subpart C-Appraisals, 34.42(h). 5 Appraisal Institute,The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), 73. 6 Appraisal Institute,The Dictionary of Real Estate Appraisal, 7""ed. (Chicago: Appraisal Institute, 2022), 105. 7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), 105. c 2023 CBRE, Inc. 2 CBRE Page 1417 of 1993 Scope of Work Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor's records • legal description • concept site plan & sections depicting the proposed mixed-use development. Extent to Which the Property is Inspected Stuart Lieberman, MAI inspected the interior and exterior of the subject, as well as its surrounding environs on the effective date of appraisal. This inspection was considered adequate and is the basis for our findings. Type and Extent of the Data Researched CBRE reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • comparable sale & listing data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. For vacant land, the sales comparison approach has been employed for this assignment. c 2023 CBRE, Inc. 3 CBRE Page 1418 of 1993 Scope of Work Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Size Legal description, recorded plat&concept site plan Improved Data Building Area Concept site plan & proposed building sections Area Breakdown/Use Concept site plan &proposed building sections No. Bldgs. Concept site plan Parking Spaces Not provided Year Built/Developed Proposed Economic Data Deferred Maintenance: Not applicable Building Costs: Not applicable Income Data: Not applicable Expense Data: Not applicable Compiled by CBRE APPRAISAL METHODOLOGY In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Depending on a specific appraisal assignment, any of the following four methods may be used to determine the market value of the fee simple interest of land: • Sales Comparison Approach; • Income Capitalization Procedures; • Allocation; and • Extraction. The following summaries of each method are paraphrased from the text. The first is the sales comparison approach. This is a process of analyzing sales of similar, recently sold parcels in order to derive an indication of the most probable sales price (or value) of the property being appraised. The reliability of this approach is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data regarding size, price, terms of sale, etc., (c) the degree of comparability or extent of adjustment necessary for differences between the subject and the comparables, and (d) the absence of nontypical conditions affecting the sales price. This is the primary and most reliable method used to value land (if adequate data exists). The income capitalization procedures include three methods: land residual technique, ground rent capitalization, and Subdivision Development Analysis. A discussion of each of these three techniques is presented in the following paragraphs. The land residual method may be used to estimate land value when sales data on similar parcels of vacant land are lacking. This technique is based on the principle of balance and the related concept of contribution, which are concerned with equilibrium c-2023 CBRE, Inc. CBRE Page 1419 of 1993 Scope of Work among the agents of production--i.e. labor, capital, coordination, and land. The land residual technique can be used to estimate land value when: 1) building value is known or can be accurately estimated, 2) stabilized, annual net operating income to the property is known or estimable, and 3) both building and land capitalization rates can be extracted from the market. Building value can be estimated for new or proposed buildings that represent the highest and best use of the property and have not yet incurred physical deterioration or functional obsolescence. The subdivision development method is used to value land when subdivision and development represent the highest and best use of the appraised parcel. In this method, an appraiser determines the number and size of lots that can be created from the appraised land physically, legally, and economically. The value of the underlying land is then estimated through a discounted cash flow analysis with revenues based on the achievable sale price of the finished product and expenses based on all costs required to complete and sell the finished product. The ground rent capitalization procedure is predicated upon the assumption that ground rents can be capitalized at an appropriate rate to indicate the market value of a site. Ground rent is paid for the right to use and occupy the land according to the terms of the ground lease; it corresponds to the value of the landowner's interest in the land. Market-derived capitalization rates are used to convert ground rent into market value. This procedure is useful when an analysis of comparable sales of leased land indicates a range of rents and reasonable support for capitalization rates can be obtained. The allocation method is typically used when sales are so rare that the value cannot be estimated by direct comparison. This method is based on the principle of balance and the related concept of contribution, which affirm that there is a normal or typical ratio of land value to property value for specific categories of real estate in specific locations. This ratio is generally more reliable when the subject property includes relatively new improvements. The allocation method does not produce conclusive value indications, but it can be used to establish land value when the number of vacant land sales is inadequate. The extraction method is a variant of the allocation method in which land value is extracted from the sale price of an improved property by deducting the contribution of the improvements, which is estimated from their depreciated costs. The remaining value represents the value of the land. Value indications derived in this way are generally unpersuasive because the assessment ratios may be unreliable and the extraction method does not reflect market considerations. Because there are limited "arm's length" comparable sales of alleyways and-or public rights-of- way necessary for a reasonable & supportable valuation process, we have applied the "across the fence" (ATF) valuation methodology. In theory, ATF is applicable when undevelopable sites with limited marketability can be joined to an adjacent parcel and can legally & physically assume the adjacent parcel's highest & best use and unit value. With regards to the subject site, we have employed the ATF methodology based on the existing RM-1, Residential Multi-Family, Low Intensity District "as of right" zoning density. The other methodologies are used primarily when comparable land sales data is non-existent. Therefore, these approaches have not been used. c-2023 CBRE, Inc 5 CBRE Page 1420 of 1993 Area Analysis Area Analysis II ,....... .a... it • .., 8- - ,.......'. .._ S ini�•=` , .b "_ . - -.%rt., u Or. ,..„,,,„„„„a, 6._.nw.. , t - -t w.. •or � 11.......� •• ..ye�0 ....., -- �- Qom.. 41 i 0oeldmille "..."....Lumemn, u..tent. ca.e"""e"""r . Oornse r `�. ,� ' � s.... ...q.. —Sw.,Memo ^wens... The subject is located in Miami-Dade County. Key information about the area is provided in the following tables. POPULATION The area has a population of 2,733,765 and AREA POPULATION BY AGE a median age of 40, with the largest 500 ,000 400 000 population group in the 30-39 age range and 300,000 the smallest population in 80+ age range. 700.0,0 I I100.000 0 ,, 0-9 10-19 20-29 30-39 -10-49 50-59 60-69 70-79 80+ Population has increased by 237,330 since POPULATION BY YEAR 2010, reflecting an annual increase of 0.7%. 3.000,000 2.500.000 - Population is projected to increase by 38,725 2.000,000 between 2023 and 2028, reflecting a 0.3% 1.500•°°° annual population growth. 1 " 000500 0000 w« 2010 2023 2028 Soa.c. ESRI,downloaded on Mo.8 2024 6 2023 CBRE, Inc. CBRE Page 1421 of 1993 Area Analysis INCOME The area features an average household MEDIAN INCOME BY YEAR income of $95,752 and a median household 680.000 income of $60,992. Over the next five years, $60.000 median household income is expected to $40,000 increase by 19.6%, or $2,389 per annum. s20,0a0 so 2023 2028 EDUCATION A total of 34.9% of individuals over the age of POP(JIATION AYDF(",REF 24 have a college degree, with 21.9% holding a bachelor's degree and 13.0% holding a ■Bachelor's Degree graduate degree. ■Graduate Degree ■Other EMPLOYMENT Health Care/Shoal Assistance Retail Trade Transpertationi Warehousing Prof(Sc ientific/Tech Services Construct:on Acommodation/rood Services Lducational Services Admin/Suppo-t/W aste Mgmt Srvcs Other Services(cad vubi Adm) Finance!Insuraf;[e i] 12 .4 The area includes a total of 1,376,756 employees. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Transportation/Warehousing, which represent a combined total of 32% of the workforce. Source:ESRIdowolooded oh mar 8.2024 81S.pa,dated ion 0,1900 c 2023 CBRE, Inc. CBRE Page 1422 of 1993 Area Analysis MIAMI AREA ECONOMIC SUMMARY Miami, FL, Area Economic Summary Updated June 30,2023 This summary presents a sampling of economic information for the area;supplemental data are provided for regions and the nation.Subjects include unemployment.employment.wages,prices.spending.and benefits.All data are not seasonally adjusted and some may be subject to revision.Area definitions may differ by subject.For more area summaries and geographic definitions,see www.bis.aov/regions/economic-summaries.htm. Unemployment rates for the nation and selected Average weekly wages for all industries by county areas Miami area,fourth quitter 2022 Unemployment rates lu s -51,385;area-$1.413) 3.4 United States 3.4 Paton Beeth 31.444 2.6 Miami area 2.4 2.7 Browing aroward Co 31.532 2.6 2S Mlami-Oade Co. 2.2 •Aenl►Oede 2.7 $1.463 Palm Beath Co 2.7 0.0 2.0 4.0 e May-22 111May-23 -� Sos.rce•U S BLS.Local Aree Unemployment Statr'trs Source'U S BLS,Muir, Cenws of Eme.oynient and Wates Over-the-year changes in employment on nonfarm oavrolii and employment by major industry sec,or 12-month rent in employmentChange from May Pe Miami area employment 15.0 (number in thousands) j May 2023 2022 to May 2023 lumber Pe+cent l0A otal nonfarm' 2.888.0 63.6 3 0 MIN ng and logging 5.0 • �..++.. Construction 136 3 7 6 -S 3 Manu acwring 96.2 4.0 4.2 0.0 1 ---� Trade,transportation,and utilities 646 5 16 3 2.6 SO inlernnaeon 54 2 1A -2 5 Rnancial activities 214 0 39 1.9 -10.0 Professional and business services 522.7 16.6 3.7 Education and health services 449 3 26 2 6 2 -150 Leisure and hosprtallty 336 4 13.2 4.1 May-20 May-21 May-22 11444y-23 Other services 114.7 2.9 2.6 Miami area .0.0 United States Government 312 9 7.3 2A So..rce U S BLS.Cinrert Employment 5tatistrs Source U S BLS,Current Employment Stadsdcs. U.S. BUREAU OF LABOR S7A"ISTIC5 • bls.gov I ©413LS _gCV 'ABILNS n 8 CBRE 2023 CBRE, Inc. Page 1423 of 1993 Area Analysis Over-the-year change in the prices paid by urbar Over-the-year changes in the selling prices received by consumers for selected categories producers for selected industries nationwide 12-month percent change in CPI-U,April 2023 12-mortis percent changes In PM 10.0 9.0 40.0 7.9 it 8.0 30.0 • 6.0 4.9 20.0 - 10.0 4.0 • -10.0 W _ • 2.0 `•. 0.0 1 I . ,+ l 20A 2.0 �. 1 .t 4 .i 30.0 -4.0 $ May 20 May 21 May 22 May 23 ----General freight trucking -6.0 5.1 All items Food Energy -Hospitals ',Miami area ^U.S.city average -Noe*and motels,except casino hotels Soi:n'c-U S.BIS,Corsi-mer Price Irmo Sot:rcr U S 815.Producer Price Mex Average annual spending and percent distribution Average hourly wages for selected occupations For selected categories 0..::p.itu,. - .. Average annual expenditures,United States and Miami area,2020-21 All occupations 528.36 529.76 100% tS11,062 Accountants and auditors 40.21 41./0 BOX ,= T 60% 57,803 Registered nurses 39-33 42 80 AMU 40% 20% Aircraft cargo hindiingsuperviias 28.10 29.40 0% MUM.arra United States Construction laborers 18.58 22.29 •Ail caner,terns e Personal,nsuian,.8 pensions Receptionists and Information decks 16.08 16.64 •Healthcare -rood ■Tramport+tion Maids and housekeeping cleaners 14.17 15.35 •rious.np soi.rrr u5BLS inracmrrrxprr'deideSi.eery So✓cc US ell Omit:o raEr••ior-e•itamWage Stadsncs,Noy 2022 Employer costs per hour worked for wages and Over-the-year changes in wages and salaries selected employee benefits by geographic division 12-month percent changes in ECI Private industry, i South AtlintsUnited March 2023 (1) I Statt's 8.0 Total compensation 537.18 540.79 7.0 Wages end salann.• 26.91 28.76 6.0 ".. Total benefits 1037 12.02 5.0 ,r- Paid leave 240 3{.04 4.0 Vacation 1.44 ISS 3.0 a• Supplemental pay 1.20 1.52 2.0 Insurance 2.51 3.01 1.0 Retirement and savings 1.09 139 ly •uited benefits 2.78 3.06 0.0 1 �- --� Mar-2D Mar-21 Mar 22 Mar-23 1t)Me macs Mut carip.a.di.Sut.Al n:ic sena Muslim arm Of,OC, -- mc,figrap.M,SC,vAarraWY. Miami area -United States Mum*us.ems.ardor*,cats to unotor..eommeimeon. Souse U S Ills.E rapmyrne rt Cott ir ace Southeast Information OfRce•BISInfoAtlantaAbls.ew•httos.//www.blsgov/regions/southeast•404-893-4222 JBLIS 9 CBRE c 2023 CBRE, Inc. Page 1424 of 1993 Area Analysis OPENING DAY Growth in nonresidential construction jobs will also be robust because groundbreakings on major projects have become routine in MIA. Phase one of the MiamiCentral train station, which will eventually connect a new intercity train line with local transit options, debuted in May 2019. Not far from the station is the $2 billion Miami Worldcenter that is transforming 27 acres of parking lots into a vast collection of residential, retail, office and hotel buildings. Over the next few years, the "tallest building in Florida" distinction will pass among multiple skyscrapers in downtown Miami. And county commissioners recently gave final approval to a $4 billion mega-mall in northwest Miami-Dade County that will be America's largest shopping complex if it is completed as planned. CONCLUSION The economy in Miami-Dade County will continue to experience an increase in population, an increase in household income, and an increase in household values. In addition, MIA's international character and its high-skilled, bilingual workforce will help it exceed the U.S. in income growth over the long term. The Miami-Dade County market area is enjoying a high velocity of growth while burdened with an affordable housing crisis and the nuisance of heavy traffic congestion. 10 CBRE c 2023 CBRE, Inc. Page 1425 of 1993 Neighborhood Analysis Neighborhood Analysis S ...Mc GIS,Go 1.3 OSI Tm,C?1 ' 7+, ..J . -. d • i r JT��rS�ME ow.o.c 0I t IwGt ot'[a MI ! O Ju_ _,[IT,Won IF F µ� loom { ` 1 • V i 11111 40 ; ° i B /11tUwm ti. Yoe.,.;,..,acr. S !SPAh,N.., E,40,14,0G0IIDS y tYYMYS S ,..crown_ • GmhEI11n0 $�N MMM V , , M,:%[,1 . f LOCATION The subject property is located along the north end of Farrey Lane and north bank of Biscayne Bay on Bella Isle in the South Beach submarket in the City of Miami Beach, Florida. Bella Isle is part of a string of islands along the Venetian Causeway that connects the downtown Miami mainland with Miami Beach. The City of Miami Beach is a barrier island approximately one mile wide, ten miles long and extends in a north-south direction along the eastern seaboard parallel to mainland Miami-Dade County between Biscayne Bay and the Atlantic Ocean. The subject is located approximately 4-miles southeast of the Miami Central Business District (CBD). BOUNDARIES The subject property is in the "South Beach" area of Miami Beach, which is bounded by Arthur Godfrey Road to the north, Biscayne Bay to the west, the Atlantic Ocean to the east and Government Cut to the south. The neighborhood boundaries may be generally described as follows: North: Arthur Godfrey Road South: Atlantic Ocean/Government Cut East: Atlantic Ocean/beach West: Biscayne Bay 11 c 2023 CBRE, Inc. CBRE Page 1426 of 1993 Neighborhood Analysis LAND USE Land uses within the subject neighborhood consist of a wide variety of commercial, residential & hotel developments. The focal point for Miami Beach is the Lincoln Road pedestrian mall and surrounding uses including the Miami Beach Convention Center, the Fillmore Theater, the New World Symphony & Soundscape Park, Miami Beach City Hall, Pride Park and a municipal parking garage that serves City Hall and the Lincoln Road pedestrian mall to the south, as depicted in the below graphic. Carwrubn Canter Park latex Garden MCC HOPI .... Carol Pen /Ienen Perk ci TltaGly iY/,h .. yr ' ,It` likthl ,� .1 444b.'' , . Parana Beech Crventon Canter s G&nate TSea IN hr tinea Sa:Ms.AO*Para According to Wikipedia and the venue website, the Miami Beach Convention Center (originally the Miami Beach Exhibition Hall) originally opened in 1958 and was most recently renovated from 2015-2018 for $620 million. The re-imagined and enhanced MBCC includes a 60,000- square-foot Grand Ballroom (the largest in South Florida), four junior ballrooms, 500,000 square feet of flexible exhibition space, 84 meeting rooms, and pre-function space, as well as outdoor spaces and terraces. Lower density multi-family rental & condominium apartment uses are concentrated along Pennsylvania Avenue, Euclid Avenue and Meridian Avenue to the south. The neighborhood & community retail and office uses are typically clustered along the Alton Road, Washington Avenue, Collins Avenue and Dade BoulevardNenetian Causeway corridors, as well as the pedestrian-only areas of Lincoln Road Mall. Higher density hotels, condominiums, restaurants, and retail are primarily concentrated along the Collins Avenue and Ocean Drive corridors with additional retail uses, nightclubs, restaurants and smaller boutique hotels on Washington Avenue. c 2023 CBRE, Inc. 12 CBRE Page 1427 of 1993 Neighborhood Analysis Collins Avenue is partly co-signed State Road AlA and is a major thoroughfare in South Florida, United States. The road runs parallel to the Atlantic Ocean in Miami Beach, Florida, one block west of Ocean Drive. It also runs through the cities of Surfside and Sunny Isles Beach to the north. Collins Avenue was named for John S. Collins, a developer who, in 1913, completed Miami's first bridge, Collins Bridge, connecting Miami Beach to the mainland across Biscayne Bay. The Lincoln Road pedestrian mall is a key focal point in South Beach and runs east-west from Collins Avenue to Alton Road between 16th and 17th Streets with storefronts on Lincoln Road and to a lesser extent along the side streets. =►�+ . + wr++ro s Moon*taimaprionis 'algal net 1 y„,..arai Bala. C. `erlu. Carrrraren tIlhs. .�...r. Cordercre r 4K+■.• a b 121 T .wr of 7n:St... Vali Ppalriy Arts TM,u.mr McMM tV 1%IYY inn ryrvy ill }-fiswarm r P eW.a.si P P 40 te— aw --.e.).• _ P Moltr "` ID=>ril .. lto.:\ ,, „,„,.., c....., .. .......r ....rr 3 pipe. i 4Xr ..a..l - t 11.... F < !"""< < ar..n. ! . i f. I s <x c a i : +-w.seer• C�alwl.vw.. i =511,Wail Mw(Jaw Urtiw I FlamingoE r r.rr Park Iln .,. n I flc�+oorgm Pair a...ET /rH if Since the capital improvement project in 1996, Lincoln Road has experienced substantial changes in tenant mix, including more restaurants and sidewalk cafes, and a shift to traditional retail shopping. At the west end of the mall, Regal Cinema opened an 18-screen stadium style movie theater in 1999. This development was strongly supported by the local municipality and has proved vital in attracting national retailers, such as Banana Republic, Pottery Barn, Williams— Sonoma, Bebe, Swatch, Victoria's Secret's, Ann Taylor Loft, Sunglass Hut, Anthropologie, Books & Books, Chicos, Foot Locker, I. Strada, Morgan Miller, Payless ShoeSource, Quicksilver, White House/Black Market and Express to the pedestrian promenade. The addition of the Regal Cinemas solidified the Lincoln Road redevelopment and began to make it very attractive to the national retailers and high-end restaurateurs. While Lincoln Road is in and of itself a destination c 2023 CBRE, Inc. 13 CBRE Page 1428 of 1993 Neighborhood Analysis location, the cinemas also serve to attract year-round Miami-Dade residents to Lincoln Road. The Regal Cinemas is one of the most heavily patronized cinemas in South Florida. Anchoring the east end of Lincoln Road Mall was the former New World Symphony which was also known as the Lincoln Theatre building. Established in 1987 under the artistic direction of Michael Tilson Thomas, the New World Symphony provides an instructional program to prepare graduates of distinguished music programs for leadership positions in orchestras and ensembles around the world. The New World Symphony relocated to 500 17th Street into a Frank Gehry designed concert hall and a 7,000 square foot projection wall on which concerts, video art and films are shown free-of-charge to audiences in Soundscape, a 2.5-acre public park, designed by Dutch architectural firm West 8. Washington Avenue is a 1/2 block walk to the east and after a long master planning process, development incentives and the establishment of a Business Improvement District (BID), the Washington Avenue corridor is starting to redevelop. Under a BID, the property owners agree to a self-tax to provide funding for marketing, promotion and other initiatives to improve the area. The BID followed approval of the Washington Avenue Overlay in 2016 which increased allowable height to 75 feet for properties with more than 200 feet of frontage on Washington Avenue, reduced minimum hotel room sizes for new hotels and conversions, allowed for co-living or micro residential units, and eliminated parking requirements for hotels. Since then, the Kimpton Anglers Hotel opened a new addition, a new Moxy Hotel has opened and the Good Time Hotel is soon to open. Approved and-or under construction projects include a new hotel at 1685 Washington Avenue and the Urbin Retreat, as illustrated in the following graphic. 14 c 2023 CBRE, Inc. CBRE Page 1429 of 1993 w..00.10,..A..... ,Ur,4/0111114110 I row et We Kate W ooment Once Or NY WASHINGTON AVENUE / ,.. <.- d rraen n•beer Inn*to tem Streets r 3011.Ta.Loaning aims DEVELOPMENT HIGHLIGHTS for ot.`rcenr.corelepeent mer ratereriteatt grow All de•ttNO Wert teener*wimp — .iOOroqueereMat'ngCosgfrtientienmedldepreda.M7SVtaaten•tenAra•watrM as 1M reuntrr concreted Anglers Metal Anolhv scrap MreloMrnt liars Washliyaer A.ennw r Me planned•anevotion of the Parn Theatre rev a mow resteunlectemit venue Tse tgMrgtwe Avenue is Seett.4 eM atwwttw N Mrs aet/ry sled*we/Wow `,.:[:. •:- Areh•ar vrry r r.wderstwr.a.ar.wrty,.- we.•e.etapnaaaa Alt afa.t ". - " 61» MA'S THEATER t 7SS�+ 736 743 727 br. Pa �V � _ ' ". 1I10 .' - a t' .trSii%.. gib...*sr1 . -paler -r. a ..X �' .. �0 • w , - j, ' X550 er..w•a...e..• itr'•• . .w e.wanr 4111, 1", 14..4 e.... , •• fir,. _•,, i- - �_ � iAr j! >.1 t 1 't ,� 4.....44 j ? t w4. . fi.r AM�i.I.t =, . .t ') P4P9I 41/10/ • Washington Avenue Project & Transaction Highlights: • In September 2021 sale transaction of the 42-room Hotel Astor located at 956 Washington Avenue to the Victory Investments Group for $12,750,000. The buyer is identified as Anil Monga, the CEO of Victory International USA, which manufactures and distributes name brand fragrances and cosmetics. The building features a swimming pool and 4,000 square feet +/- of restaurant space. It was built in 1936 on a 14,900- square-foot lot. • Washington Park located at 1050 Washington Avenue is a 181-room hotel that sold in February 2021 for $43,750,000. The buyer is Jean Simonian of WPH Properties and this was a lender REO from Ladder Capital. • 601 Washington Avenue was recently completed and operating as The Goodtime Hotel with 266-rooms and a 30,000-SF restaurant called Strawberry Moon operated by Groot Hospitality. The eatery opens up to a rooftop pool and club area that hosts live music. The hotel also has around 46,000 rentable square feet of ground-floor retail space and 242 parking spaces, as presented in the following aerial photograph. c 2023 CBRE, Inc. 'S CBRE Page 1430 of 1993 Neighborhood Analysis ,. .. 1I ♦ i.Y s A. r- . ...* -.77.. --lAt ka-.4.sx.___I -_ V1 % ,,, 0.- . abi, -4"kk.,,, ------ t • .a. ... ...*II i.N: h 'ti dr ). 4. • vilelb. ♦ s tJ ii 7 e ,N - • Urbin, a co-living, co-work concept was approved by the City's Historic Preservation Board for a proposed six-story co-living and hotel project at 1234 Washington Avenue. The new building will contain 49 co-living units, 56 hotel rooms, retail and restaurant space. An adjacent 1960s office building will be renovated and restored as co- workspace. It will also contain a wellness center for residents and hotel guests on the first floor, rounding out the brand's live, work, wellness theme. < , ,, - lilt II s .s t.,.... �� ,. _ _ . 1,. ...1P'."11...u. ... • Residential uses in the South Beach submarket are primarily single family and low-rise multifamily in design and date back to the 1920's and 1930's with higher density resort hotels and residential condominium towers found along the Atlantic Ocean/beach and Biscayne Bay shorelines. The waterfront is where the large-scale, high-rise multifamily residential projects are located, including rental apartments, condominiums, and hotels. c 2023 CBRE, Inc. 'b CBRE Page 1431 of 1993 Neighborhood Analysis Ocean Drive, which runs parallel to the Atlantic Ocean and South Beach and is one of the area's premier attractions. The pristine beaches and warm waters of the Atlantic Ocean are to the east side of Ocean Drive, while a host of al fresco dining establishments and some of Florida's most luxurious, high-end hotels such as the Ritz-Carlton, The Delano, The Setai, The Shore Club and The Tides.ACCESS Overall, access to and throughout the subject neighborhood is considered good. The major east- west thoroughfares providing direct access to the subject area from the Miami mainland include the Venetian Causeway that converges into 17'h Street and Dade Boulevard to the north; 5th Street/MacArthur Causeway (US Highway No. 41/State Road Al A), located to the south of the subject property; and Arthur Godfrey/Julia Tuttle Causeway (1-195) located north of the subject property. The Miami Tunnel opened in 2014 to alleviate congestion from PortMiami along the MacArthur Causeway. These arteries connect South Beach to mainland Miami to the west, as well as intersect with the primary north-south arteries of Alton Road, Collins Avenue, Washington Avenue and Ocean Drive. Interstate 95 is the major north-south expressway providing direct access to Miami-Dade County, as well as points north along the eastern seaboard. Biscayne Boulevard (U.S. Highway No. 1) is a well-traveled artery providing north-south access from S.E. 3rd street in downtown Miami to the Broward County line to the north. Direct access to the subject property is provided via Washington Avenue which acts as the subject's eastern boundary line and is a two-way, two-lane, north-south city street with divided median and parallel (metered) street parking. The immediate subject area has good access via the local artery/highway network, and to the area business and commercial community. In addition to the existing access points, there is a proposal to connect Miami Beach with downtown Miami via a monorail line. The elevated monorail would include three (3) stations and run along the south side of the MacArthur Causeway. One station would be built on the Miami side of the line and close to where the causeway begins, while the other two stations would be on Miami Beach near the end of the causeway, and the other at the intersection of Washington Avenue and 5th Street. DEMOGRAPHICS Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table: 17 c 2023 CBRE, Inc. CBRE Page 1432 of 1993 Neighborhood Analysis SELECTED NEIGHBORHOOD DEMOGRAPHICS 6&7 Farrey Lane 1 Mile 3 Mile 5 Mile 33139- Miami-Dade Miami Beach,FL 33139 Radius Radius Radius Miami Beach Florida County Population 2028 Total Population 15,147 120,308 381,430 36,094 23,091,949 2,772,490 2023 Total Population 15,151 106,114 348,980 35,979 22,381,338 2,733,765 2010 Total Population 16,788 85,053 297,574 38,777 18,801,310 2,496,435 2000 Total Population 16,372 71,321 271,076 38,274 15,982,378 2,253,399 Annual Growth 2023-2028 -0.01% 2.54% 1.79% 0.06% 0.63% 0.28% Annual Growth 2010-2023 -0.79% 1.72% 1.23% -0.57% 1.35% 0.70% Annual Growth 2000-2010 0.25% 1.78% 0.94% 0.13% 1.64% 1.03% Households 2028 Total Households 8,767 65,751 185,900 21,377 9,259,577 1,019,262 2023 Total Households 8,722 57,548 166,804 21,179 8,909,543 989,193 2010 Total Households 9,963 46,726 135,016 23,565 7,420,802 867,352 2000 Total Households 9,637 38,266 115,421 23,351 6,337,929 776,797 Annual Growth 2023-2028 0.10% 2.70% 2.19% 0.19% 0.77% 0.60% Annual Growth 2010-2023 -1.02% 1.62% 1.64% -0.82% 1.42% 1.02% Annual Growth 2000-2010 0.33% 2.02% 1.58% 0.09% 1.59% 1.11% Income 2023 Median Household Income 581,871 $81,862 $59,665 $65,524 S65,081 $60,992 2023 Average Household Income 5138,189 $131,991 $102,551 $120,090 $97,191 $95,752 2023 Per Capita Income $79,295 $71,860 $49,056 $70,714 $38,778 $34,693 2023 Pop 25+College Graduates 8,144 51,789 117,751 17,300 5,589,144 680,904 Age 25+ Percent College Graduates-2023 63.4% 61.5% 44.8% 56.1% 34.3% 34.9% Source. ESRI CONCLUSION The subject neighborhood location is mature and built-out with growth in population and households through higher density, redevelopment opportunities along the major thoroughfares and waterfront. The local demographic profile is middle-to-upper-middle-income and the overall outlook is for favorable performance over the foreseeable future. Many neighborhood improvements are renovated, historically rehabilitated and-or in good-to-excellent condition. Access to the neighborhood is good and utility services are adequate. Supporting commercial uses are good and surrounding land uses are compatible. Overall, it is our opinion that the subject neighborhood will continue to remain a very desirable area, with continued potential for appreciation. In addition, the Miami Beach submarket is a destination resort community and international "hot spot" that continues to flourish over the long term despite adverse macro- economic cycles. d 2023 CBRE, Inc. 18 CBRE Page 1433 of 1993 Site Analysis BELLE ISLE VILLAS PLAT & FARREY LANE ALLEY LOCATION 4 /00 r ' FARRE�" _ • / • Q i > 7 sSECOND!ftGn011 NA VILLA5 ) t ` 4 r_ -.• .i r•.;-_ ,-. <:• • y •a4w� __ . r .Lt.O - r1f. .x+. oma.t-..�. jrry2.._ . r.,ru,..2 :11,4 ++..:-....- ,.4.-.'r— ^l'x - .r,:. alfa 101.0114.'It r OP�.. ,.. - ai.. . .. ar ly it..'.Jr I.- »C.*",. _.- . M. „,..itt.,.., •r i/�yylT/�'�.. r.l Y yA�+f w.. A"., C :R .G.l.. :Ey. .r. a - ©2023 CBRE,Inc. 19 CBRE Page 1434 of 1993 Site Analysis FLOOD PLAIN MAP National Flood Hazard Layer FIRMette $ ,F:,,:, Legend _ _ _ ..A vv.om.aamoaf/w..0Myr Sal".aLL.O s -.r I ".i wwwirAA llia Wight le/010•000.0 Vasairovb OM.00 yam... •t Iroln=I .•..r.'•.r.w =is w..4+air..4...r..*4* 'r r 116•••••1.••••4•••r..•a.1. •••./4.1.0................s ..a..I k.*or r...a ri.t M: aniailia ME 4.n°Z.4.7.7:. a.w n.MM O.ra.M r.r.�. ...U.....4...YM. 11.030 M1[1110 - 4+v 4.r.S.. .taws... • - rt••M r•••••1a..•M. y. ♦f` •44.6t.0S4 + 777 t __ .�. _.o..tw. .. . •.s. S... W11•7 OM i.. ..w,Of,...r...1 r b..kawrlM n 100.010:0.t. i • *. • - - J ..i 'A•.S.A..In* Minn..hr f.... • — a ....1.r r.ra... • " ""W.--- .nts+r...... 1 NON W. - - i • ro+.aw rs.w.. . .....M•13 4.0.••••••• M..M./..••rJ.P.O.N y►./a. I�t I ��r.a.0....rrMk..a Rut r.A.. PIll/101 TR.r... .w..••Ww .. I ...... ...t...+......t.w�w.. a 11. •$$ * SM.r..ir.p•....l.R..ar.a.r.a.i.Y{rw *WA 0•6v1.0....••owe*.•••••.....s 4..6.•M... ..A.a eve al. ■rktlw w...4._.*.r. 1 500 000 .<........... b....,Mil.w Sart...w wenvY]027 c%2023 CBRE, Inc. 20 CBRE Page 1435 of 1993 Site Analysis Site Analysis The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area 0.02 Acres 657 Sq. Ft. Net Site Area 0.02 Acres 657 Sq. Ft. Cubic Feet Area 10,139 Cubic Feet Primary Road Frontage Farrey Lane/Alley 32 Feet Shape Rectangular Topography Improved to road grade Zoning District RM-1, Residential Multi-Family, Low Intensity Flood Map Panel No. & Date 12086C0317L 11-Sep-09 Flood Zone Zone AE (EL 8) Adjacent Land Uses Belle Isle Villas, The Standard hotel, Island Apartments and Biscayne Bay Comparative Analysis Rating Visibility Local street& pedestrian visibility Functional Utility Good if aprt of an assemblage Traffic Volume Heavy neighborhood &seasonal tourist traffic Adequacy of Utilities Municipal services Landscaping Urban streetscape Drainage Municipal storm drainage Utilities Provider Availability Water City of Miami Beach Yes Sewer City of Miami Beach Yes Natural Gas Contract service Yes Electricity FPL Yes Telephone AT&T land lines Yes Mass Transit Miami-Dade County(MDT) Metrobus and Miami Beach Trolley Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions X Reciprocal Parking Rights X Various sources compiled by CBRE INGRESS/EGRESS Ingress and egress is available to the site via a paved alley connecting to Farrey Lane. 2023 CBRE, Inc. 21 CBRE Page 1436 of 1993 Site Analysis Street improvements include asphalt paving, storm water drainage system, underground potable water & sanitary sewer lines, and above ground electric power poles. EASEMENTS AND ENCROACHMENTS There are no known easements or encroachments impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. COVENANTS, CONDITIONS AND RESTRICTIONS There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a copy of the current covenants, conditions and restrictions, if any, prior to making a business decision. ENVIRONMENTAL ISSUES Although CBRE was not provided an Environmental Site Assessment (ESA), a tour of the site did not reveal any obvious issues regarding environmental contamination or adverse conditions. The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. CONCLUSION The site is wedged between a dry lot and a Biscayne Bay waterfront lot with the potential to connect both lots via a sky bridge over the subject alley, thereby creating a larger, multi-story, developable site with unobstructed Biscayne Bay view corridors. 22 CBRE c 2023 CBRE, Inc. Page 1437 of 1993 Improvement Analysis PROPOSED IMPROVEMENTS SUMMARY AND ANALYSIS Property Type Land (Mixed-Use) Number of Buildings 1 Number of Stories 4 Year Built Proposed Net Rentable/Sellable Area 9,125 SF Floor Area Ratio(FAR) 0.87 Source: Various sources compiled by CBRE The foregoing improvement summary is based on the marketing materials and the concept site plan, floor plans, elevations and building sections provided by the client and represents the abutting redevelopment program. In addition, the concept package provided, includes the following description of spaces and uses for the subject air rights, excluding the ground level surface area. RIFIC Farrey Lane Air Rights over ROW escription of Spaces Level 01 Level 02 Level 03 Total Enclosed Habitable Space 431.76 431.76 863.52 rivate Balcony 74.74 74.74 149.48 Decorative Architectural Feature 150.20 150.20 103.83 404.23 Root Deck Open to Sky 191.01 191.01 Poo 733.33 233.33 Grand Total 656.7 656.7 528.17 1841.57 23 CBRE c 2023 CBRE, Inc. Page 1438 of 1993 Improvement Analysis PROJECT LOCATION MAP & PROPOSED SURFACE SITE PLAN r.•q l..C....R Popov v M 4,041••••0•4_2401 74 R P C -'_4141 m 4141. �,.. Xs rr ►� • -. 110 • a • ! dylr '4 o • -i 414A1 1141 Iii �' �-�{ IIA _ t e "1r•` ____........_ eh4141.. • morel B.a.IN.•61 7 Garrey lane Propel Lon Map •.qy l•w Camay P.y.k kw M Asks*rot 401/1-140+24 RIPIC 1. . gi ' -.-' f 's C-- I ! , . fl ...(1;\1 ... •4 1 i 01. • ��...I... -- _ • . ' 0. i •V u41.. — 6&7 Gorey Lane Fiero,Pian Level 00 24 CBRE 6-2023 CBRE, Inc. Page 1439 of 1993 Improvement Analysis PROPOSED AIR RIGHTS — LEVEL 1 r.•ly La Cay.•p P.dtps b Ar gyhU oM,ROW_240I74 R , P C a .� i t R 1 I 1p.........: _ 1 j I T ._• ............._ i7.•_••w._On.w,heft,....w E.rr•.•....•,.Y... ..w 6$7 Farrey Lane 04 a..,......................•••.....,..•Y•+w .I■...•. Floor Plan-Leve1 01 agog aWWI:.. MB,w• 25 CBRE c 2023 CBRE, Inc. Page 1440 of 1993 Improvement Analysis PROPOSED AIR RIGHTS - LEVEL 2 rimy Lao Cam*Pran.ler Is•MOM woe IOW 31111311 RIPIC • 4,1 111r" ,.' i IEE3-: W ftwkw,arra. 6 i 7 farrey lane .....r.r..w..+."Mom.. r.++ .ws.. Floor Plan•level 02 woo Ili w..• •r.•.• 26 CBRE 2023 CBRE, Inc. Page 1441 of 1993 Improvement Analysis PROPOSED AIR RIGHTS — LEVEL 3 F..p...Cao.... r As%pm e...R aoI 4 RIPIC s-y r i I I )60. 1 1 •r.. :1,. , 111 •••=0••••••.m. LAVINE 6&7 Farny tart E o..r...............n.......—...r.*. m..... Floor Plan Level 03 ,_.m<,,.,..� o..<..•-- 27 2023 CBRE, Inc. CBRE Page 1442 of 1993 Improvement Analysis PROPOSED AIR RIGHTS — LEVEL 4 f rti,aM„M.110 Package b N Mimes orw M.`W 140114 R P C till — I .414-: '- . 1 Iltd I ....._._.- 1 _ . . . ____-) •••••.....•.. 6&7 Farrey lane Floor Plan-Level 04 28 CBRE ©2023 CBRE,Inc. Page 1443 of 1993 Improvement Analysis PROPOSED AIR RIGHTS - SECTION DIAGRAM P.m,LIM C.av..ling,r a.Oboes we,•Ow 3 124 R P ' C i 1.,,.=•_4v,,-..1 ' 1�F—7 1 _r 1 ! 1 Nom— _ • ► f' 1 i lialliiii ' t i 1 ♦:.; ° tI I I 1 I i I _+ —i I 1 ; a ; ...ft UM.. II 7 Fanty lane ,- 29 CBRE c 2023 CBRE, Inc. Page 1444 of 1993 Improvement Analysis PROPOSED FUTURE DEVELOPMENT AERIAL it.ny,Lw Concept PWgr 4 M Ryp arm 14004_240s 24 R i P C tttv I __.;,,At - , ft - 01°.'"." ..af ' ,, , , .r- ra.• � �y M ii= WWII Notch Ile*tilt-has u a a'- +~ Aerial Perspet2hre 01 II 2023 CBRE, Inc. 30 CBRE Page 1445 of 1993 Improvement Analysis CONCEPT ELEVATION „.....- f....,.catoopt P.r.,fcr k Rb.V..ig NO W_:w1 i. T t- 015- _ �'" ' • I ,�� -t• R.NR r, t� �.� 'nom :de Eaa,tr i. 31 C BRE c 2023 CBRE, Inc. Page 1446 of 1993 Improvement Analysis CONCEPT ELEVATION - FUTURE DEVELOPMENT ferry lin Concept Pang a M Rim-w 1lQV-2.40,:4 4101 go p i 0' , 4 i • log • i - 2: =.; —- t " Y..4to llsf t_ • Aet.e1 Penpectnne Eltvstion . 32 CBRE c 2023 CBRE, Inc. Page 1447 of 1993 Zoning ZONING MAP -1 i OYF,G`AL ZONING V e= r OF THE 4p CITY OF I. ' • MIAMI BEACH 41,j ,R„* •FLORIDA• ABIl..,1_..... , i°, ., 11117,..:::- ' , 4 ._, . , ,. . .ti i -r . ) ai♦Q4 -0.. I t. Ifir . . . „. sus. ! 4 'R6 1 ii } 1 ,•71117Y • , � �'�_+' __.�..._ 4 =� ,reser"7:s 33 CBRE 2023 CBRE, Inc. Page 1448 of 1993 Zoning Zoning The following chart summarizes the subject's zoning requirements. ZONING SUMMARY Current Zoning RM-1,Residential Multi-Family,Low Intensity Purpose The RM-1 residential multifamily,low density district is designed for low intensity,low rise,single-family and multiple-family residences. Uses Permitted&Prohibited (a)The main permitted uses in the RM-1 residential multifamily,low density district are single-family detached dwelling;townhomes;apartments;apartment hotels,hotels,and suite hotels for properties fronting Harding Avenue or Collins Avenue,from the city line on the north,to 73rd Street on the south(pursuant to section 142-1105 of this chapter);and bed and breakfast inn(pursuant to article V,division 7 of this chapter) (b)Alcoholic beverage establishments pursuant to the regulations set forth in chapter 6 of the City Code, are prohibited uses,unless otherwise specified.Moreover,all uses not listed as a main permitted or conditional use are also prohibited. Conditional Uses (a)The conditional uses in the RM-1 residential multifamily,low density district are day care facility; religious institutions;private and public institutions;schools;commercial or noncommercial parking lots and garages; For properties located in the Collins Waterfront Local Historic District,which are designated as a Local Historic Site,a hall for hire use within the interior of an existing building shall require conditional use approval and shall comply(b)with the following. (1)The conditional use shall only be permitted within an existing structure that is on a property designated as a'Historic Site'and such limitation shall be recorded in the Public Records; (2)Dance halls,entertainment establishments and neighborhood impact establishments may only be permitted as part of a hall for hire; (3)The hall for hire use shall close by 11,00 p.m.Sunday through Thursday,and by 12:00 a.m.Friday and Saturday; (4)Events at the hall for hire shall be for the exclusive use of the property owner(and its subsidiaries)and invited guests.Events at the hall shall not be for the general public,with the exception of adjacent schools and community organizations within the Collins Park and Flamingo Drive areas,which may use the hall until 9.00 p.m.; (5)Restaurants,stand-alone bars and alcoholic beverage establishments,not functioning as a hall-for-hire, shall be prohibited; (6)Outdoor dining,outdoor entertainment and open-air entertainment uses shall be prohibited; (7)Private or valet parking for any event at the hall shall be prohibited from using Flamingo Drive,Flamingo Place or Lake Pancoast Drive to facilitate access to the site. c)For apartment buildings located north of 41st Street with a minimum of 100 apartment units,a restaurant serving alcoholic beverages shall require conditional use approval and shall comply with the following. (1)The restaurant shall only be open to residents of the apartment building and their invited guests.All invited guests shall be required to park on the subject property. (2)The kitchen shall be limited to a maximum size of 500 square feet. (3)The conditional use application for a restaurant with outdoor seating and outdoor dining areas shall specify the proposed maximum number of seats,and locations of seating in the outdoor areas,which shall be subject to planning board review and approval. (4)A hall for hire,dance hall,open-tar entertainment establishment,outdoor entertainment establishment or entertainment establishment shall be prohibited. (5)There shall only be one restaurant on the subject property. (61 The hours of operation of the restaurant may be from 8.00 am,to midnight(no orders to be taken after 11:00 p.m.),and for any exterior areas only until 11:00 p.m.(no order to be taken after 10:00 p.m.). (7)Without limiting the foregoing,in the outdoors areas of the restaurant there shall not be any entertainment or special events. There shall be no variances from the provisions of section 142-153(b). Accessory Uses The accessory uses in the RM-1 residential multifamily,low density district are as required in article IV, division 2 of this chapter Category Zoning Requirement Minimum Lot Size 5,600 Sq.F. Minimum Lot Width 50 Feet Maximum Height Historic district is 40 feet Flamingo Park Local Historic District is 35 feet(except as provided in section 142-1161) Otherwise 50 feet For properties outside a local historic district with a ground level consisting of non-habitable parking and/or amenity uses is 55 feet Maximum Number of Stories 5 Stories;and 4 stories in Historic District or 3 stories in Flamingo Park Local Historic District Source City of Mom,Beach Planning&Zoning Dept 34 CBRE i:;2023 CBRE, Inc. Page 1449 of 1993 Zoning ZONING SUMMARY-Continued Minimum Unit Size 550-SF for new construction 400-SF for non-elderly and elderly low 8 moderate income housing 400-SF for workforce housing 400-SF for refabiitated buildings Hotel units: 15%300-SF to 335-SF 8 85%335-SF+ For contributing hotel structures,located within an individual historic site,a local historic district or a national register district,which are renovated in accordance with the Secretary of the Interior Standards and Guidelines for the Rehabilitation of Historic Structures as amended,retaining the existing room configuration and sizes of at least 200 square feet shall be permitted.Additionally,the existing room configurations for the above described hotel structures may be modified to address applicable life-safety and accessibility regulations,provided the 200 square feet minimum unit size is maintained,and provided the maximum occupancy per hotel room does not exceed 4 persons.Hotel units within rooftop additions to contributing structures in a historic district and individually designated historic buildings-200. Average Unit Size 800-SF for new construction 400-SF for non-elderly and elderly low&moderate income housing 400-SF for workforce housing 550-SF for rehabiitated buildings. The number of units may not exceed the maximum density set forth in the comprehensive plan Minimum Yard Elevations 1.The minimum elevation of a required yard shall be no less than five feet NAW(6.56 feet NGVD(,with the exception of driveways,walkways,transition areas,green infrastructure(e.g.,vegetated swales,permeable pavement,rain gardens,and rainwater/stormwater capture and infiltration devices),and areas where existing landscaping is to be preserved,which may have a lower elevation.When in conflict with the maximum elevation requirements as outlined in paragraph c.,below,the minimum elevation requirements shall still apply. 2 The minimum yard elevation requirements shall not apply to properties containing individually designated historic structures,or to properties designated as'contributing'within a local historic district,or a National Register Historic District. Maximum Yard Elevations 1 Front yard,side yard facing a street,and interior side yard. The maximum elevation within a required front yard,side yard facing a street,and interior side yard shall not exceed 30 inches above grade,or future adjusted grade,whichever is greater.In this instance,the maximum height of any fences)or wall(s)in the required yard,constructed in compliance with section 142-1132(h).'Allowable encroachments within required yards shall be measured from existing grade. 2. The maximum elevation for a required rear yard,(not including portions located within a required side yard or side yard facing the street),shall be calculated according to the following: (A)The maximum elevation shall not exceed the base flood elevation,plus freeboard. (8)The maximum elevation shall not exceed 30 inches above grade,or future adjusted grade,whichever is greater. Stormwater Retention In all instances where the existing elevation of a site is modified,a site shall be designed with adequate infrastructure to retain all stormwater on site in accordance with all applicable state and local regulations. Retaining Wall&Yard Slope 1.Retaining walls shall be finished with stucco,stone,or other high quality materials,in accordance with the applicable design review or appropriateness critena. 2.Within the required front yard and side yard facing a street,the following shall apply: (A)The first four feet of the property line,the maximum height of retaining walls shall not exceed 30 inches above existing sidewalk elevation,or existing adjacent grade if no sidewalk is present (B)When setback a minimum of four feet front property line,the maximum height of a retaining wall shall not exceed 30 inches above adjacent grade. C)The maximum slope of the required front and side yard facing a street shall not exceed 11 percent (5:1 horizontal;vertical). Minimum Setbacks, Front Yard 20 Feet Street Side Yard Single lots less than 65 feet in width 5 feet,otherwise 10 feet,or 8%of lot width,whichever is greater Interior Side Yard Single lots less than 65 feet in width-5 feet.otherwise 10 feet,or 8%of lot width,whichever is greater Rear Yard 5 feet abutting an alley,otherwise 10%of the lot depth Maximum FAR/Density Maximum FAR is 1.25. West side of Collins Avenue between 76th and 79th Streets is 1.4. Public and private institutions:Lot area equal to or less than 15,000 square feet-1.25;lot area greater than 15,000 square feet-1.4. Lot Coverage The maximum lot coverage for a lot or lots greater than 65 feet in width shall not exceed 45 percent.In addition to the building areas included in lot coverage,as defined in section 114-1,impervious parking areas and impervious driveways shall also be included in the lot coverage calculations.The design review board or histone preservation board,as applicable,may waive the lot coverage requirements in accordance with the design review or certificate of appropriateness criteria,as applicable. Parking Requirements; Apartments 1.5 spaces per unit for units between 550 and 999 square feet, 1.75 spores per unit for units between 1,000 and 1,200 square feet; 2 spaces per unit for units above 1,200 square feet. Developments of 20 units or less shall have no designated guest parking requirements. Multi-family buildings and suites-hotels with more than 20 units shall be required to provide supplemental designated guest parking equal to 10%of the required residential parking spaces. Source Crty of Marie Beach Planning&Zoning Deportment 35 CBRE 2023 CBRE, Inc. Page 1450 of 1993 Zoning ANALYSIS AND CONCLUSION The existing public alley and proposed air rights are for a skybridge intended to connect 6 Farrey Lane to 7 Farrey Lane and provide enclosed habitable space, private balcony, decorative architectural features, a pool and roof terrace over the public right-of-way appears to be a reasonable and conforming use for the subject site. Additional information may be obtained from the City of Miami Beach Planning & Zoning Department. For purposes of this appraisal, CBRE has assumed the information obtained is correct. 36 CBRE c 2023 CBRE, Inc. Page 1451 of 1993 Tax and Assessment Data Tax and Assessment Data AD VALOREM TAX INFORMATION Proposed Parcel Assessor's Parcel No. Parcel Description 2022 2023 Air Rights 1 02-3233-003-0060 Single Family $1,383,553 $1,379,067 $595,000 2 02-3233-003-0070 Vacant Waterfront Lot 2,761,473 2,761,473 Subtotal $4,145,026 $4,140,540 $595,000 %of Assessed Value 100% 100% 85% Final Assessed Value 4,145,026 4,140,540 $505,750 General Tax Rate (per$100 A.V.) 1.878930 1.889670 1.889670 Total Taxes $77,882 $78,243 $9,557 4% Tax Reduction for Early Pay Discount ($3,1 15) ($3,130) ($382) Total Adjusted Taxes $74,767 $75,113 $9,175 Taxes per SF $10.22 $10.27 $13.97 Source. Assessor's Office The subject property is currently owned by a municipal government and is exempt from taxation. However, if the subject property were to be sold to the abutting property owner, the Miami-Dade County Assessor's office could assign a tax folio number for assessment purposes. The local Assessor's methodology for valuation is sales comparison approach to value. The next re- assessment of the subject was scheduled for January 1, 2024. According to the "just value" statute for all Counties within the State of Florida, the assessment for taxation purposes, is supposed to reflect 100% of market value, less cost of sale, i.e. marketing & real estate commissions, transaction & mortgage recording fees, etc., which typically equates to 65% to 85% of a recorded sale price and/or a market value estimate. According to a representative of Miami-Dade County Revenue Collector, there are no delinquent property taxes encumbering the subject. CONCLUSION Based on the foregoing, the total taxes for the subject have been estimated as $9,175 for the base year of our analysis, including the 4% early pay discount, based upon an assessed value of $505,750. This a realistic scenario based on the "just value" statute, less cost of sale. For purposes of this analysis, CBRE, Inc. assumes that all taxes are current. 37 CBRE 2023 CBRE, Inc. Page 1452 of 1993 Highest and Best Use Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: legally permissible; physically possible; financially feasible; and maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT Legal Permissibility The legally permissible uses were discussed in the Site Analysis and Zoning Sections. Physical Possibility The subject site is a public right-of-way that is adequately served by on-site improvements and off-site infrastructure. However, the small size and location renders the site undevelopable as a standalone property. However, an abutting user and-or developer could acquire the site and develop to a higher & better use, subject to unity of title and benefit from the additional site area and density. Existing and proposed structures on abutting properties represent single family residential, multi- family apartment and hotel uses that provide evidence for the physical possibility of development if assembled into a larger, developable site. Alternate physically possible uses include utility easements, public space, storm water drainage or retention or surface parking. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable land uses versus the cost to create the uses. With respect to the legal uses for the subject site, the local submarket is in a growth & redevelopment cycle. Development of new high value residential, multi-family and hotel uses has occurred in the recent past and continues to this day. Further, within the subject market, there are several under construction and proposed high-value residential, multi-family residential and hotel projects. Again, the physical constraints of the small site size limits stand-alone development. Therefore, the most obvious use is to sell to an abutting owner/user or developer, while alternate uses would be for utility easements, public space, storm water drainage and-or surface parking. 38 CBRE c 2023 CBRE, Inc. Page 1453 of 1993 Highest and Best Use Maximum Productivity - Conclusion The final test of highest and best use of the site as if vacant is that the use be maximally productive, yielding the highest return to the land. Based on the information presented above and upon information contained in the neighborhood analysis, we conclude that the highest and best use of the subject parcel would be the proposed acquisition & assemblage with the abutting property owner for redevelopment of a high-value residential project with a skybridge connection over the subject alley. More specifically, the subject property could be developed in concert with an abutting use to a height of 4-to-5 stories and a density of 1 .25 FAR. 39 CBRE c 2023 CBRE, Inc. Page 1454 of 1993 Sales Comparison Approach Land Value The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. m c Standard Spa � c411110 NVtan Way ; _ Bette fele S VMtWei ,a O C f to IV 4 { O O by 2 ----------_-- S 46, • Hieiscus l8La nd SUMMARY Of COMPARABLE LAND SALES Transaction Actual Sale Adjusted Sale Size Size Price No. Property Location Type Date Proposed Use Price Price' (Acres) (SF) PSI'of Site 1 1320 S.Venetian Way Sale Apr-22 Single family residence $12,000,000 $12,000,000 0.28 12,250 $979.59 1320 S.Venetian Way Miami,FL 33139 2 375 N.Hibiscus Drive Sale Jul-22 Single family residence S14,000,000 514,000,000 0.36 15,750 $888.89 375 N.Hibiscus Drive Miami Beach,FL 33139 3 1330 S.Venetian Way Sale Mar-23 Single family residential 59,500.000 59,500,000 0.28 12,250 $775.51 1330 S.Venetian Way Miami,FL 33139 4 1350 S.Venetian Way Sale Apr-23 Single family residence 59,300,000 59,300,000 0 28 12,250 $759.18 1350 S.Venetian Way Miami,FL 33139 5 415 E.Rivo Alto Drive Sale Jul-23 Single family residence 510,447,000 510,447,000 0.24 10,500 $994.95 415 E.Rivo Alto Drive Miami Beach,FL 33139 6 1384 5.Venetian Way Sale Nov-23 Single family residential $11,500,000 $11,500,000 0.31 13,382 5859 36 1384 S.Venetian Way Miami,FL 33139 Subj. 6 8.7 Farrey Lane --- --- Single or multifamily --- --- 0.02 657 --- Miami Beach,FL 33139 residential uses Ad(usted sale pace for cash equivalency and/or development costs(where applicable) Compiled by CBRE 40 ©2023 CBRE, Inc. CBRE Page 1455 of 1993 Sales Comparison Approach The sales utilized represent the best data available for comparison with the subject and were selected from the greater South Beach submarket. These sales were chosen based upon location along the Venetian Causeway with Biscayne Bay view corridors and zoning for single family and low density multi-family residential land uses. DISCUSSION/ANALYSIS OF LAND SALES Land Sale One This comparable land sale is located along at the south side of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The property was broker listed at $12,500,000 since April 2021 and sold for $12,000,000 in April 2022 in an "all cash" sale transaction. The seller previously acquired the property in March 2021 for $7,850,000 and the current buyer re-listed the property at $12,500,000 in December 2023 but cancelled the listing after one-month. The T3 R zoning "as of right" permits single family and a maximum density of 9 residential units per acre, a maximum building height of 2-stories, and 50% maximum lot coverage on the 1st floor and 30% maximum lot coverage on the 2nd floor. We adjusted Land Sale 1 upwards for upwards inferior zoning/density, i.e. 2-story maximum building versus the subject's 4-to-5 story maximum building height. Land Sale Two This comparable land sale is located along at the north side of Hibiscus Island and fronting Biscayne Bay in the City of Miami Beach, Florida. The property was broker listed at $14,000,000 and sold within one-day at full list price with an approved and permitted plan set. The seller is an active investor/agent who acquired the property in June 2022 for $10,670,000 with partners and immediately re-listed and flipped it for a profit. The RS-3 "as of right" zoning permits single family residential with a maximum building height of 28-feet or 2-stories, and 30% maximum lot coverage for a 2-story home, excluding garage. We adjusted Land Sale 2 upwards for upwards inferior zoning/density, i.e. 2-story maximum building versus the subject's 4-to-5 story maximum building height, and single-family density versus the subject's single & multi-family residential density. Land Sale Three This comparable land sale is located along at the south side of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The property was broker listed at $10,950,000 and sold for $9,500,000 in an "all cash" sale transaction. The seller also owned and sold-off 1350 S. Venetian Way in April 2023 and had both sites in a combined listing at $26,000,000 in June 2022 but sold each lot separately. The buyer has re-listed the property at $12,000,000 as of February 2024. The T3 R zoning "as of right" permits single family and a maximum density of 9 residential units per acre, a maximum building height of 2-stories, and 50% maximum lot coverage on the 1st floor and 30% maximum lot coverage on the 2nd floor. c 2023 CBRE, Inc. 41 CBRE Page 1456 of 1993 Sales Comparison Approach We adjusted Land Sale 3 upwards for upwards inferior zoning/density, i.e. 2-story maximum building versus the subject's 4-to-5 story maximum building height. Land Sale Four This comparable land sale is located along at the south side of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The properly was broker listed at $12,250,000 and sold for $9,300,000 with the seller providing a $7,700,000 purchase money mortgage. The seller also owned and sold-off 1330 S. Venetian Way in March 2023 and had both sites in a combined listing at $26,000,000 in June 2022 but sold each lot separately. The T3 R zoning "as of right" permits single family and a maximum density of 9 residential units per acre, a maximum building height of 2-stories, and 50% maximum lot coverage on the 1st floor and 30% maximum lot coverage on the 2nd floor. We adjusted Land Sale 4 upwards for upwards inferior zoning/density, i.e. 2-story maximum building versus the subject's 4-to-5 story maximum building height. Land Sale Five This comparable land sale is located along at the east side of Rivo Alto Island and fronting Biscayne Bay in the City of Miami Beach, Florida. The property was broker listed at $10,800,000 and sold for $10,447,000 including approved and permitted plan set. The seller is an active investor/agent who acquired the property in December 2021 for $6,959,000 and re-listed at $13,500,000 followed by a price reduction to $10,800,000 in 2023. The seller facilitated this sale transaction with a $5,500,000 purchase money mortgage. The RS-3 "as of right" zoning permits single family residential with a maximum building height of 28-feet or 2-stories, and 30% maximum lot coverage for a 2-story home, excluding garage. We adjusted Land Sale 5 upwards for upwards inferior zoning/density, i.e. 2-story maximum building versus the subject's 4-to-5 story maximum building height, and single-family density versus the subject's single & multi-family residential density. Land Sale Six This comparable land sale is located along at the southeast end of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The site shape is an outward pie with a southeasterly view of Biscayne Bay. The property was broker listed on & off at $13,500,000 since September 2021 with a reduced list price of $12,900,000 in June 2023. The property sold for $11,500,000 in November 2023 and the sale transaction was facilitated with an $8,000,000 purchase money mortgage in favor of the seller. The T3 R zoning "as of right" permits single family and a maximum density of 9 residential units per acre, a maximum building height of 2-stories, and 50% maximum lot coverage on the 1st floor and 30% maximum lot coverage on the 2nd floor. 42 CBRE c 2023 CBRE, Inc. Page 1457 of 1993 Sales Comparison Approach We adjusted Land Sale 6 upwards for upwards inferior zoning/density, i.e. 2-story maximum building versus the subject's 4-to-5 story maximum building height. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. LAND SALES ADJUSTMENT GRID Comparable Number 1 2 3 4 5 6 Subject Transaction Type Sale Sale Sale Sale Sale Sale --- Transaction Date Apr-22 Jul-22 Mar-23 Apr-23 Jul-23 Nov-23 --- Proposed Use Single family Single family Single family Single family Single family Single family I Single or multi- residence residence residential residence residence residential I family residential uses Actual Sale Price $12,000,000 S14,000,000 59,500,000 $9,300,000 510,447,000 $11,500,000 --- Adjusted Sale Price' $12,000,000 S14,000,000 59,500,000 $9,300,000 $10,447,000 511,500,000 --- Size(Acres) 0.28 0 36 0.28 0.28 0.24 0.31 0.02 Size(SF) 12,250 15,750 12,250 12,250 10,500 13,382 657 Price Per SF $979.59 $888 89 $775.51 5759.18 5994.95 S859.36 --- i Price(S PSF) $979.59 $888.89 $775.51 $759.18 $994.95 $859.36 Property Rights Conveyed 0% 0% 0% 0% 0% 0% Financing Terms' 0% 0% 0% -5% -5% -5% Conditions of Sale 0% 0% 25% 25% 0% 0% Market Conditions(lime) 0% 0% 0% 0% 0% 0% Subtotal $979.59 5888.89 $969.39 5901.53 $945.20 S816.39 Size 0% 0% 0% 0% 0% 0% Shape 0% 0% 0% 0% 0% 5% Corner 0% 0% 0% 0% 0% 0% Frontage/Yew Corridor 0% 0% 0% 0% 0% 5% Topography 0% 0% 0% 0% 0% 0% Location 0% 0% 0% 0% 0% 0% Zoning/Density&Building Height 40% 50% 40% 40% 50% 40% Utilities 0% 0% 0% 0% 0% 0% Highest&Best Use 0% 0% 0% 0% 0% 0% Total Other Adjustments 40% 50% 40% 40% 50% 50% Value Indication PSF of Site $1,371.43 $1,333.34 S1,357.14 51,262.14 $1,417.80 $1,224.59 Absolute Adjustment 40% 50% 65% 70% 55% 55% 'Adiusted sale pnce for cash equivalency and/or development costs(where applicable) Compiled by CBRE CONCLUSION The comparables land sales produced an overall unadjusted value indicator range from $759.18 to $994.95 per square foot of site area. After adjustments were considered and-or applied for property rights conveyed, conditions of sale, i. e. assemblage or distress, market conditions (time), size, corner or frontage/view corridors, topography/site conditions, location, and zoning/density, including maximum building height, when compared to the subject property, the range of value indicators was adjusted to $1,224.59 to $1,417.80 per square foot of site area. Based on the preceding analysis, Comparable Sales 1, 3, 4 & 6 were the most representative of the subject site, and warranted greatest consideration because of recent transaction dates, location, and zoning/density/building height. 43 CBRE c 2023 CBRE, Inc. Page 1458 of 1993 Sales Comparison Approach In conclusion, a price per square foot of site area within the overall adjusted range is most appropriate for valuing the subject property is calculated as follows: CONCLUDED LAND VALUE $ PSF of Site Site SF Total $1,200.00 x 657 = $788,040 $1,400.00 x 657 = $919,380 Indicated Land Value: $850,000 (Rounded $ PSF of Site) $1,294.35 Compiled by CBRE 44 CBRE c'2023 CBRE, Inc. Page 1459 of 1993 Valuation of Air Rights Value Divided Between Surface, Sub-Surface & Air Rights In this section, we have estimated the value of subject air rights divided between surface rights up to 17.12 feet NGVD, the air rights between 17.12 feet to 65.56 feet NGVD, and the sub-surface rights. To derive an allocation for subdivision of property rights between surface, sub-surface, and air rights, we have considered the "as of right" zoning and the measured NGVD height, and the calculated cubic feet for each level provided in the Farrey Lane Concept Package. Using the measured NGVD height and the calculated cubic feet for each level, we have derived the surface and air rights allocated percentages, as follows: SUBDIVIDED AIR RIGHT ALLOCATIONS % of % of NGVD NGVD Cubic SF % of SF Height Height Cubic Feet Feet Grade Level 656.70 26.29% 17.12 26.11% 1 1,242.70 30.97% Level 2 656.70 26.29% 16.11 24.57% 10,579.44 29.14% Level 3 656.70 26.29% 12.67 19.33% 8,320.39 22.92% Level4 528.17 21.14% 11.66 17.79% 6,158.46 16.96% Level 5 - Top of Structure --- --- 8.00 12.20% TOTALS 2,498.27 100.00% 65.56 100.00% 36,300.99 100.00% AIR RIGHTS ALLOCATIONS 73.71% 73.89% 69.03% Source: 6 & 7 Farrey Lane Concept Package Based on the foregoing calculation & presentation, we have concluded a property rights value allocation of 20%, rounded, for the surface rights up to 17.12-feet NGVD; 70%, rounded, for the air rights between 17.12 feet to 65.56-feet NGVD, i.e. for development levels 2 through 4 plus roof top terrace; and a nominal 10% for sub-surface rights necessary for underground utilities and infrastructure in support of the developable air rights. We have also considered comparable sales of air rights and public rights-of-way in support of the allocated percentages of value versus the acquisition of the fee simple estate, which represents 100% of the bundle of rights & interest in the sub-surface, surface & air rights. The following table represents the comparable sales and sale price as a percentage of fee simple land value, presented as follows: 45 CBRE 2023 CBRE, inc. Page 1460 of 1993 Valuation of Air Rights COMPARABLE SALES 01'SUBDIVIDED PROPERTY RIGHTS&PERCENTAGE ALLOCATIONS Sale Price Transaction Interest Sale Fee Sin.ple Sia. Price Asa%of No. Properly Location Type Date Transferred Zoning Price Land Valise SF Type Elevation PSF Land Value 1 1001 Colhm Avenue& Sale Oct-19 Air Rights MXE,Miaed-Use S133,000 5300,000 120 Aenal Easement for 36-Feet Above SI 125 00 45.0% 1020 Ocean Dnve, Entertainment Pedstnan Bndge Grad.Surface Miami Beach,FL 33139 2 South Miami Avenue and Sale Jun-12 Nr Rights 76.486 O.Urban 5802.262 55,345,100 17,817 Sub-Surface Sub-Surface 545 03 15.0% 75'South of SE 7M Core,Open Easement for Street.Miami,FL 33131 Subterranean Parlung Garage 3 SE 7th Street and 75'East Sole Aug-12 Air Rights T6-48b 0,Urban $255,000 51.275000 4,250 Aerial Easement for Above Grade S60 00 20.0% of South Miami Avenue, Cor.,Open Pedestrian Bridge Surface Miami.FL 33131 4 NE Corner of 5th Street& Sale Oct-09 Air Rights CPS-2, $92,600 53,17 100 1,157 Aenal Easement for Above Grade 560 03 26.7% Alton Rood,Miami Commercial Canopy&Balcony Surface Beach,FL 33130 Performance Protruding into Standard Rights-of-Way 5 1698 Alton Road.Miami Sale Oct-17 Fee Simple Right-of-Way 5665,000 5665,000 2,000 Alley for Parking 14-Feet Above 5332 50 100.0% Beach,FL 33130 Geroge Skybndge Grade Surface vnth Perpetual Easement to the City 6 1220 Ocean Dnve, Sale Mor-15 Air Rights Right-of-Way S250,000 5327,006 182 Aerial Easement for Above Grade $1.376 12 76.5% Miami Beach,FL 33139 Skybndge Surface 7 1440 Ocean Dnve, Sale Nov-16 Air Rights Right-of-way $245,000 $832,500 555 Aenal Easement for Above Grade 5441 44 21.4% Miami Beach,FL 33139 Skybndge Surface -- 657 Minot Sky -- --- Subt 6&7 Farrey Lane --• --. Our Rights RM-1,Rsidenlwl --- - Bridge& 1 7 12'to 65 5 ' Miam,Beach,FL 33139 Muth-Fomily,Low Development Levels Above NADV Intensity Adivsled sale price for cash gvc.al.ncy and/or dewlopmenf cosh(-her.applicable) Compiled by CBRE The comparables sales produced a range from 15.0% to 100% and are premised on sub-surface easements to 100% fee simple transactions. The subject air rights intended for sell-off include multiple levels including the sky bridge for connecting 6 & 7 Farrey Lane, and indoor habitable areas and outdoor terrace areas. As such, the higher percentage of sale price to land value represented by Comparables 5 & 6 is most indicative for comparison to the subject's air rights including the skybridge and multiple levels depicted in the concept development. Based on the proposed building height and cubic feet calculations and the foregoing comparable sale percentage allocations, we have estimated the percentage allocation for air rights to be 70% for the subject property. Once the percentage allocation is estimated, we are now able to calculate the allocation of the value for the subject air rights divided between surface, sub-surface & subdivided air rights, as follows: PROPOSED AIR RIGHTS Fee Simple Value As Is 100.00% $850,000 Proposed Air Rights; Surface Rights to 17.12 Feet @ 20.00% = $170,000 Air Rights Between 17.12 to 65.56 Feet @ 70.00% = $595,000 Air Rights Above 65.56 Feet @ 0.00% = $0 Sub-Surface Rights @ 10.00% = $85,000 Compiled by CBRE 46 CBRE c 2023 CBRE, Inc. Page 1461 of 1993 Assumptions and Limiting Conditions Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, "CBRE") has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the "Report"), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject properly is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE hos not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, ore structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) ore in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of on engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property's compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. 47 CBRE c 2023 CBRE, Inc. Page 1462 of 1993 Assumptions and Limiting Conditions (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE's attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently mode known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner's representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor's Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the some) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE's independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles ("ESG"), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 48 CBRE d'2023 CBRE, Inc. Page 1463 of 1993 Assumptions and Limiting Conditions 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user's failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced,or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be mode available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 49 CBRE c 2023 CBRE, Inc. Page 1464 of 1993 Addenda ADDENDA c 2023 CBRE, Inc. Page 1465 of 1993 Addenda Addendum A LAND SALE DATA SHEETS c 2023 CBRE, Inc. Page 1466 of 1993 ale Land - Sing - nit Residential N• I Property Name 1320 S.Venetian Way Address 1320 S.Venetian Way �' Miami, FL 33139 United States « ' '` "•'�' -•, fir.. Government Tax Agency Miami-Dade _ r MO Govt./Tax ID 01-3232-001-0330 - "4 i W Site/Government Regulations j1 4 Acres Square feet 's7 _te41. 4 Land Area Net 0.281 12,250 _ 1; Land Area Gross N/A N/A 7''Las f Site Development Status Finished Shape Rectangular • Topography Level,At Street Grade Utilities All available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street 70 ft S.Venetian Way Frontage Distance/Street 70 ft Biscayne Bay General Plan Single family residential Specific Plan Single family residential Zoning T3 R,Sub-Urban Restricted Entitlement Status N/A Recorded Buyer William A. Kennedy, Ill Marketing Time 11 Month(s) True Buyer N/A Buyer Type Private Investor Recorded Seller 1320 S Venetian Way, LLC Seller Type Private Investor True Seller David L. Koche Primary Verification Arlene Dunand, Listing Agent Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant lot Date 4/18/2022 Proposed Use Single family residence Sale Price $12,000,000 Listing Broker Caldwell Banker Realty#305-986-0663 Financing All Cash Selling Broker N/A Cash Equivalent $12,000,000 Doc# 33148/896 Capital Adjustment $0 Adjusted Price $12,000,000 Transaction.Date Transacti.onlype Buyer Seller Price Price/ac and/sf 04/2022 Sale William A. Kennedy,III 1320 S Venetian Way, $12,000,000 $42,674,253/$979.59 LIC Page 1467 of 1993 CBRE ale Land - Single • t Residential $979.59 /sf N/A /Unit S42,674,253.20 /ac N/A /Allowable Bldg. Units N/A /Building Area No information recorded This comparable land sale is located along at the south side of Venetian Island and fronting Biscayne Bay tv in the City of Miami, Florida. The property was broker listed at$12,500,000 since April 2021 and sold for$12,000,000 in April 2022 in an"all cash"sale transaction. The seller previously acquired the �... property in March 2021 for$7,850,000 and the current buyer re-listed the property at$12,500,000 in December 2023 but cancelled the listing after one-month. The T3 R zoning"as of right"permits single family and a maximum density of 9 residential units per acre,a maximum building height of 2-stories, GOOgiC ., dot.2024 and 50%maximum lot coverage on the 1st floor and 30%maximum lot coverage on the 2nd floor. Page 1468 of 1993 CBRE ale Land - Single Unit Residential No. Property Name 375 N. Hibiscus Drive Address 375 N. Hibiscus Drive Miami Beach, FL 33139 United States Government Tax Agency Miami Dade Nt, - Govt./Tax ID 02-3232-006-0350 �7 y Site/Govemment Regulations le... . vi Acres Square feet r "` � � Land Area Net 0.362 15,750 , rni it �71114 , Land Area Gross N/A N/A ., . 4, .. ' 4to- x0 Site Development Status Finished •fl4fe N- ilio 41, Shape Rectangular • N Topography Level,At Street Grade Utilities All available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street 90 ft N. Hibiscus Drive Frontage Distance/Street 90 ft Biscayne Bay General Plan Single family residential Specific Plan Single family residence Zoning RS-3, Single Family Residential Entitlement Status N/A Recorded Buyer NB Hibiscus Inc. Marketing Time 0 Month(s) True Buyer N/A Buyer Type Private Investor Recorded Seller Calico Sunshine 163, LLC, Coral Coastal, LLC Seller Type Private Investor and 375 N Hibiscus LLC True Seller Lauren Groll, Nelson Gonzalez and Carlos Primary Verification Nelson Gonzalez, Listing Agent Garcia Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant lot Dote 7/8/2022 Proposed Use Single family residence Sale Price $14,000,000 Listing Broker BHHS EWM Realty#305-674-4040 Financing Cash to Seller Selling Broker N/A Cash Equivalent $14,000,000 Doc# 33281/4762 Capital Adjustment SO Adjusted Price $14,000,000 Transaction Date Transaction Type Buyer Seller Price Price/ac andllsf 07/2022 Sale NB Hibiscus Inc. Calico Sunshine 163, $14,000,000 S38,716,814/$888.89 LLC,Coral Coastal,LLC and 375 N Hibiscus LLC Page 1469 of 1993 CBRE • - • n • - i • - nit R - • • - ti • I 5888.89 /sf N/A /Unit $38,716,814.16 /ac N/A /Allowable Bldg. Units N/A /Building Area No information r•cordod 8 Comments This comparable land sale is located along at the north side of Hibiscus Island and fronting Biscayne Bay in the City of Miami Beach, Florida. The property was broker listed at 514,000,000 and sold within one- day at full list price with an approved and permitted plan set. The seller is an active investor/agent who acquired the property in June 2022 for$10,670,000 with partners and immediately re-listed and flipped it for a profit. The RS-3"as of right"zoning permits single family residential with a maximum building height of 28-feet or 2-stories,and 30%maximum lot coverage for a 2-story home,excluding garage. P•top dots 02024 Goode Page 1470 of 1993 CBRE r • - • 1 • .•' • I • L:11.11 / . • 1 • • f Property Name 1330 S.Venetian Way tid"0 `–•s Address 1330 S.Venetian Way � '�' Miami, FL 33139 _ — United States rlin g ‘ Government Tax Agency Miami-Dade .-- r' ,... Govt./Tax ID 01-3232-001-0320 lie Site/Government Regulations L Acres Square feet , A Land Area Net 0.281 12,250 t _, . At ,1., Land Area Gross N/A N/A '_ .JP' E i Site Development Status Finished - Shape Rectangular , Topography Level,At Street Grade Utilities All available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street 70 ft S.Venetian Way Frontage Distance/Street 70 ft Biscayne Bay General Plan Single family residential Specific Plan Single family residence Zoning T3 R, Sub-Urban Restricted Entitlement Status N/A James A. Liburdi,as Trustee of the Pompea Recorded Buyer Mountain Trust Marketing Time 1 Month(s) True Buyer N/A Buyer Type Private Investor Recorded Seller Sandra Silverman,Moses Silverman and Seller Type Private Investor Steven Silverman.as Co-Trustees True Seller N/A Primary Verification Dina Goldentaver,Listing Agent Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant lot Date 3/17/2023 Proposed Use Single family residential Sale Price $9,500,000 Listing Broker Douglas Elliman #786-277-7539 Financing All Cash Selling Broker N/A Cash Equivalent $9,500,000 Doc# 33636/1339 Capital Adjustment SO Adjusted Price $9,500,000 Transaction Date Transaction Type Buyer Seller Price Price/ac andlsf 03/2023 Sale James A. Liburdi,as Sandra Silverman,Moses $9,500,000 $33,783,784/S775.51 Trustee of the Pompea Silverman and Steven Mountain Trust Silverman.as Co- Trustees Page 1471 of 1993 CBRE S775.51 /sf N/A /Una $33,783,783.78 /ac N/A /Allowable Bldg. Units N/A /Building Area Fi No information recorded Map& Comments }' This comparable land sale is located along at the south side of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The property was broker listed at$10,950,000 and sold for$9,500,000 in an "all cash"sale transaction. The seller also owned and sold-off 1350 S.Venetian Way in April 2023 and had both sites in a combined listing at$26,000,000 in June 2022 but sold each lot separately. The buyer has re-listed the property at$12,000,000 as of February 2024. The T3 R zoning"as of right" permits single family and a maximum density of 9 residential units per acre, a maximum building height Google. ?,,tap,:ata 2202, of 2-stories,and 50%maximum lot coverage on the 1st floor and 30% maximum lot coverage on the 2nd floor. Page 1472 of 1993 CBRE ale Land - Single Unit Residential No. Property Name 1350 S.Venetian Way Address 1350 S.Venetian Way 1410 a __ ' s Miami, FL 33139 United States !'mi.._Art 4WA, a.. Government Tax Agency Miami-Dade �� _ iii+ k41/r. Govt./Tax ID 01-3232-001-0310 k" t III Site/Government Regulations I ' Acres Square feet Land Area Net 0.281 12,250 Land Area Gross N/A N/A Site Development Status Finished • Shape Rectangular `. Topography Level,At Street Grade Utilities All available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street 70 ft S.Venetian Way Frontage Distance/Street 70 ft Biscayne Bay General Plan Single family residential Specific Plan Single family residence Zoning T3 R,Sub-Urban Restricted Entitlement Status N/A Recorded Buyer 1350 San Marco LLC Marketing Time 5 Month(s) True Buyer Nicolas Chambon Buyer Type Private Investor Recorded Seller Sandra Silverman,Moses Silverman and Seller Type Private Investor Steven Silverman,as Co-Trustees True Seller N/A Primary Verification Dina Goldentaver, Listing Agent Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant lot Date 4/4/2023 Proposed Use Single family residence Sale Price $9,300,000 Listing Broker Douglas Elliman#786-277-7539 Financing Ot er(See Comments) Selling Broker N/A Cash Equivalent $9,300,000 Doc# 33663/3668 Capital Adjustment SO Adjusted Price $9,300,000 Transaction Date Ttnnsaction_Type Buyer Seller Price Price/ac and/sf 04/2023 Sale 1350 San Marco LLC Sandra Silverman,Moses $9,300,000 $33,072,546/$759.18 Silverman and Steven Silverman,as Co- Trustees Page 1473 of 1993 CBRE ale Land - Single Unit Residential No. Units of Comparison -7111 $759.18 /sf N/A /Unit $33,072,546.23 /ac N/A /Allowable Bldg. Units N/A /Building Area Financial No information recorded Map& Comments This comparable land sale is located along at the south side of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The property was broker listed at S12,250,000 and sold for$9,300,000 with the seller providing a$7,700,000 purchase money mortgage. The seller also owned and sold-off 1330 S.Venetian Way in March 2023 and had both sites in a combined listing at$26,000,000 in June 2022 but sold each lot separately. The T3 R zoning"as of right"permits single family and a maximum density of 9 residential units per acre,a maximum building height of 2-stories, and 50%maximum lot h,tap het coverage on the 1st floor and 30%maximum lot coverage on the 2nd floor. Page 1474 of 1993 CBRE ale Lan • pec-Holding Property Name 415 E. Rivo Alto Drive , Address 415 E. Rivo Alto Drive Miami Beach, FL 33139 • I, United States a .:* Government Tax Agency Miami-Dade !,r, Govt./Tax ID 02-3233-001-0540 Site/Government Regulations r..i - _ Acres Square feet filar Land Area Net 0.241 10,500 Land Area Gross 0.241 10,500 Site Development Status Finished ,J��.c. 14 Shape Rectangular - Topography Level,At Street Grade Utilities All Available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street 60 ft E. Rivo Alto Drive Frontage Distance/Street 60 ft Biscayne Bay General Plan Single family residential Specific Plan Single family residence Zoning RS-3, Single Family Residential Entitlement Status Final Tract .:mowIkd -a1ll Recorded Buyer Mos Mia Propco I, LLC Marketing Time 5 Month(s) True Buyer Eduardo Veronese Buyer Type Private Investor Recorded Seller 415 E Rivo Drive, LLC Seller Type Private Investor True Seller David Solomon Primary Verification David Solomon, Owner/Agent Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant lot Date 7/1/2023 Proposed Use Single family residence Sale Price $10,447,000 Listing Broker BHHS EWM Realty#305-542-1131 Financing Other(See Comments) Selling Broker N/A Cosh Equivalent $10,447,000 Doc# 33794/2606 Capital Adjustment $0 Adjusted Price $10,447,000 Transaction Date Transaction Type Buyer Seller Price Price/ac and/sf 07/2023 Sale Mos Mia Propco I, LLC 415 E Rivo Drive,LLC $10,447,000 $43,348,548/$994.95 12/2021 Sale 415 E Rivo Alto Drive, N/A $6,959,000 $28,875,519/$662.76 LLC 05/2021 Sale Fang Wu Bruce A.Katzen and $13,550,000 $45,761,567/$1,050.39 Diana E. Katzen Page 1475 of 1993 CBRE ale Lan • pec-Holding N • • Units of Companion $994.95 /sf N/A /Unit $43,348,547.72 /ac N/A /Allowable Bldg. Units N/A /Building Area Financial No information recorded Map& Comments. This comparable land sale is located along at the east side of Rivo Alto Island and fronting Biscayne Bay in the City ofMiami Beach, Florida. The property was broker listed at$10,800,000 and sold for $10,447,000 including approved and permitted plan set.The seller is an active investor/agent who acquired the property in December 2021 for$6,959,000 and re-listed at$13,500,000 followed by a price reduction to$10,800,000 in 2023. The seller facilitated this sale transaction with a $5,500,000 ��,, purchase money mortgage. The RS-3 "as of right"zoning permits single family residential with a Google Map data 2024 Google maximum building height of 28-feet or 2-stories,and 30%maximum lot coverage for a 2-story home, excluding garage. Page 1476 of 1993 CBRE ale Land - Single Unit Residential No. • Property Nome 1384 S.Venetian Way �. Address 1384 S.Venetian Way _ '? Miami, FL 33139 - - United States 14 , Government Tax Agency Miami-Dade 4' \ . r ` Govt./Tax ID 01-3232-001-0250 i� Site/Government Regulations Acres Square feet T .--'"' Land Area Net 0.307 13,382 " - - • Land Area Gross N/A N/A OW wimmoirit. , , ,.. . . . _ .. .. Site Development Status Finished Shape Other(See Comments) Topography Level,At Street Grade Utilities All available Maximum FAR N/A Min Land to Bldg Ratio N/A Maximum Density N/A Frontage Distance/Street 49 ft S.Venetian Way Frontage Distance/Street 104 ft Biscayne Bay General Plan Single family residential Specific Plan Single Family Residential Zoning T3 R, Sub-Urban Restricted Entitlement Status N/A Recorded Buyer 1384 Villa M, LLC Marketing Time 21 Month(s) True Buyer N/A Buyer Type Developer Recorded Seller Gertrude Shafer,as Trustee Seller Type Private Investor True Seller N/A Primary Verification Nelson Gonzalez, Listing Agent Interest Transferred Fee Simple/Freehold Type Sale Current Use Vacant lot Date 11/17/2023 Proposed Use Single family residential Sale Price $11,500,000 Listing Broker BHHS EWM Realty#305-674-4040 Financing Other(See Comments) Selling Broker N/A Cash Equivalent $11,500,000 Doc# 33988/2071 Capital Adjustment SO Adjusted Price $11,500,000 Transaction Date Transaction Type Buyer Seller Price Price/ac and/sf 11/2023 Sale 1384 Villa M,LLC Gertrude Shafer,as 511,500,000 $37,434,896/$859.36 Trustee Page 1477 of 1993 CBRE ale Land - Single Unit Residential No. • Units of Comparison $859.36 /sf N/A /Unit $37,434,895.83 /ac N/A /Allowable Bldg. Units N/A /Building Area No information recorded This comparable land sale is located along at the southeast end of Venetian Island and fronting Biscayne Bay in the City of Miami, Florida. The site shape is an outward pie with a southeasterly view of Biscayne Bay. The property was broker listed on&off at$13,500,000 since September 2021 with a reduced list price of S12,900,000 in June 2023. The property sold for S11,500,000 in November 2023 and the sale ily transaction was facilitated with an S8,000,000 purchase money mortgage in favor of the seller. The T3 R zoning "as of right"permits single family and a maximum density of 9 residential units per acre,a Google7.7„,,, map^dfafa 62,024 maximum building height of 2-stories, and 50%maximum lot coverage on the 1st floor and 30% maximum lot coverage on the 2nd floor. Page 1478 of 1993 CBRE Addenda Addendum B LEGAL DESCRIPTION c 2023 CBRE, inc. Page 1479 of 1993 ?KIUL ..1 177 ""7. "' .. r.."_,.,_, ,.. ., 1.. ,._ ...... . _ .. ,. .> ., . . .. • . . • . . . .... . . . . .: . . . . . . . • . Q , : . ... . • , ..% i .... . r I 1 t. 4) 1)1 \ . X SE.GUii 5E0'10% J .. r'. . .. .. L . ....„..... • . . . .. . . _ . _ .___t______ .....„.„....,- .1,.__ . . . .. . . • . . .. .. .. , _ . . .• . . . . - 4..-44/.....1„. j •.. .. . •• •••.... .. •.. • .. . ... . .,. . • .. . . . ACIL"\\..-' .-.:‘ .'. 1 • v 2 7 ,77 L. .. .� I _' -.-., ` k____ ii ../if; .I :ii-A , Page 1480 of 1993 _ - ........4-7 Addenda Addendum CLIENT CONTRACT INFORMATION c 2023 CBRE, Inc. Page 1481 of 1993 VALUATION & ADVISORY SERVICES CBRE Proposal and Contract for Services CBRE,Inc. 777 BricksII Ave, Ste 1 100 Miami,Fl.33131 www.cbre.us/voluatio., February 3, 2024 Stuart IJi.b.rman,MM VAS-Vice President Jose (Joe) Gomez, Director CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT 1700 Convention Center Drive Miami Beach, FL 33139 Phone: 305-673-7080 Email: JoeGomez@miamibeachfl.gov RE: Assignment Agreement I CB24US009353 Single Family Residential —Air Rights 6 & 7 Farrey Lane Miami Beach, FL 33139 Dear Mr. Gomez: We are pleased to submit this proposal and our Terms and Conditions for this assignment. PROPOSAL SPECIFICATIONS Purpose: To estimate the Market Value of the referenced real estate Premise: As Is Rights Appraised: Fee Simple Intended Use: Due Diligence for Internal Decision Making and potential sole of air rights over City owned alley Intended User: The intended user is City of Miami Beach ("Client"), and such other parties and entities (if any) expressly recognized by CBRE as intended users (each an "Intended Users" and collectively the "Intended Users") provided that any Intended User's use of, and reliance upon, any report produced by CBRE under this Agreement shall be subject to the Terms and Conditions attached hereto and incorporated herein (including, without limitation, any limitations of liability set forth in the attached Terms and Conditions). Reliance: Reliance on any reports produced by CBRE under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not use or rely upon any opinions or conclusions Page 1482 of 1993 VALUATION & ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement CB24USOC9353 Page 2 of 1 February 3, 2C 24 contained in the report or such portions thereof, and CBRE will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith. Unless otherwise expressly identified in this Agreement, there are no third-party beneficiaries of this Agreement pertaining to this appraisal assignment or any reports produced by CBRE under this Agreement, and no other person or entity shall have any right, benefit or interest under this Agreement or with respect to any reports produced by CBRE under this Agreement. Scope of Inspection: A full interior and exterior inspection of the property will be conducted and arranged with the property contact and performed by CBRE Valuations. If this expected property inspection is not possible due to unforeseen issues (such as lack of on-site personnel cooperation, physical obstructions, or appraiser/property contact health and safety concerns), the client will be promptly advised. The client may continue this assignment based on other inspection options agreed upon by CBRE and client or provide CBRE with a written notice to cancel. If CBRE determines that a credible appraisal result cannot be achieved due to inspection limitations, it will promptly provide the client with a written cancellation of this assignment. Valuation Approaches: All three traditional approaches to value will be considered. Report Type: Appraisal Report Appraisal Standards: USPAP Appraisal Fee: $4,000.00. If cancelled by either party before a completion,the fee will be based on CBRE's hourly rates for the time expended; plus actual expenses. Expenses: Fee includes all associated expenses except to the extent otherwise provided in the attached Terms and Conditions. Retainer: A retainer is not required for this assignment. Payment Terms: Final payment is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. The full appraisal fee is considered earned upon delivery of the draft report. We will invoice you for the assignment in its entirety at the completion of the assignment. Delivery Instructions: CBRE encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report. An Adobe PDF file via email will be delivered to JoeGomez@miamibeachfl.gov. The client has requested 0 bound final copy (ies). www.cbr..us/valuation CBRE Page 1483 of 1993 VALUATION & ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement CB24US009353 Page 3 of 10 February 3, 2024 Delivery Schedule: Preliminary Value: Not Required Draft Report: Not Required Final Report: 18 business days after the Start Date Start Date: The appraisal process will start upon receipt of you' signed agreement and the property specific data. Acceptance Date: These specifications are subject to modification or withdrawal if this proposal is not accepted within 5 business days from the date of this letter. When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties, including all intended users, hereto. We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us. Sincerely, CBRE, Inc. Valuation & Advisory Services Stuart Lieberman, MAI VAS - Vice President As Agent for CBRE, Inc. T + 1 305 3816472 Stuart.Lieberman@cbre.com CBRE Page 1484 of 1993 VALUATION & ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement i CB24US0C9353 Page 4 of 10 February 3, 2024 PROPERTY NAME PROPERTY LOCATION REPORT TYPE APPRAISAL FEES Air Rights 6 & 7 Farrey Lane, Appraisal Report $4,000.00 Miami Beach, FL 33139 Assignment Total: $4,000.00 • www.cbr..us/valuation CBR E Page 1485 of 1993 VALUATION & ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement j CB24US009353 Page 5 of 10 February 3, 2024 AGREED AND ACCEPTED FOR CITY OF MIAMI BEACH ("CLIENT"): Joe Gomez..,:;o,..,,,,fl,,, os Signature Date ` Jose (Joe) Gomez Director Name Title 305-673-7080 JoeGomez@miamibeachfl.gov Phone Number E-Mail Address ADDITIONAL OPTIONAL SERVICES Assessment &Consulting Services: CBRE's Assessment& Consulting Services group has the capability of providing a wide array of solution-oriented due diligence services in the form of property condition and environmental site assessment reports, ALTA Surveys, and other necessary due diligence service (seismic risk analysis, zoning compliance service, construction risk management, annual inspections, etc.). Initial below if you desire CBRE to contact you to discuss a proposal for any part or the full complement of consulting services, or you may reach out to us at ACSProposolsrn)cbre.com. We will route your request to the appropriate manager. For more information, please visit 1 AfPQOVED AS'C! FCAM& NGUA(4 a FOG EXECUTION i1tg)zo2 —may, c n Alton.. U., Page 1486 of 1993 VALUATION& ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement I CB24US009353 Page 6 of 10 February 3, 2024 TERMS AND CONDITIONS 1. The Terms and Conditions herein ore port of an assignment agreement (the "Agreement") for appraisal services ("Services") between CBRE, Inc. ("CBRE") and the client signing this Agreement and for whom the Services will be performed(the"Client")for the property identified herein(the"Property')and shall be deemed a port of such Agreement as though fully set forth therein. In addition, with respect to any appraisal report prepared by CBRE pursuant to the Agreement(the "Report"), any use of, or reliance on, the Report by any Intended User constitutes acceptance of these Terms and Conditions as well as acceptance of all qualifying statements, limiting conditions,and assumptions stated in the Report. The Agreement shall be governed and construed by the laws of the state where the CBRE office executing this Agreement is located without regard to conflicts of laws principles. 2. Client shall be responsible for the payment of all fees stipulated in this Agreement. Payment of the fees and preparation of the Report are riot contingent upon any predetermined value or on any action or event resulting from the analyses, opinions, conclusions, or use of the Report Finol payment is due as provided in the Proposal Specifications Section of this Agreement. If a draft Report is requested, the fee is considered earned upon delivery of the draft Report It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed Report In such event, the Client is obligated to pay CBRE for the time and expenses incurred (including, but not limited to, travel expenses to and from the job site)prior to the effective dote of cancellation,with a minimum charge of$500.Hard copies of the Reports are available at o cost of $250 per original color copy and $100 per photocopy (black and white), plus shipping fees of S30 per Report. 3. If CBRE is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third pony to participate in meetings, phone calls and conferences (except routine meetings, phone calls and conferences with the Client for the sole purpose of preparing the Report), litigation, or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this assignment, the Report, CBRE's expertise, or the Property, Client shall pay CBRE's additional out-of-pocket costs and expenses, including but not limited to CBRE's reasonable attorneys'fees,and additional time incurred by CBRE based on CBRE's then-prevailing hourly rates and related fees. Such charges include and pertain to, but ore not limited to, time spent in preparing for and providing court room testimony,depositions,travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Report), meeting participation, and CBRE's other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request.In the event Client requests additional Services beyond the scope and purpose stated in the Agreement,Client agrees to pay additional fees for such services and to reimburse related expenses,whether or not the completed Report has been delivered to Client os the time of such request. 4. CBRE shall hove the right to terminate this Agreement at any time for cause effective immediately upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 5 days written notice. 5. In the event Client foils to make payments when due then, from the date due until paid, the amount due and payable shall bear interest of the maximum rate permitted in the state where the CBRE office executing this Agreement is located EACH PARTY,AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL OF ITS CHOICE, KNOWINGLY AND VOLUNTARILY, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION IN ANY WAY RELATED TO THIS AGREEMENT. 6. CBRE assumes there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor,engineer,or environmental consultant for CBRE to prepare a valid Report hereunder. Client acknowledges that such additional expertise is not covered in the fee and agrees that, if such additional expertise is required,it shall be provided by others at the discretion and direction of the Client,and solely of Client's additional cost and expense. 7. Client acknowledges that CBRE is being retained hereunder as an independent contractor to perform the Services described herein and nothing in this Agreement shall be deemed to create any other relationship between Client and CBRE. Unless otherwise stated in this Agreement, Client shall not designate or disclose CBRE or any of its agents or employees as an expert or opinion witness in any court, arbitration, or other legal proceedings without the prior written consent of CBRE. 8. This assignment shall be deemed concluded and the Services hereunder completed upon delivery to Client of the Report discussed herein, Page 1487 of 1993 VALUATION & ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement ! CB24US009353 Page 7 of 10 February 3, 2024 9. All statements of fact in the Report which are used as the basis of CBRE's analyses,opinions,and conclusions will be true and correct to CBRE's actual knowledge and belief. CBRE does not make any representation or warranty, express or implied,as to the accuracy or completeness of the information or the condition of the Property furnished to CBRE by Client or others TO THE FULLEST EXTENT PERMITTED BY LAW,CBRE DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN 10 CBRE. Furthermore, the conclusions and any permitted reliance on and use of the Report shall be subject to the assumptions, limitations, and qualifying statements contained in the Report. 10. CBRE shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions,engineering,or other similar technical matters. The Report will not constitute a survey of the Property analyzed 11. Client shall provide CBRE with such materials with respect to the assignment as are requested by CBRE and in the possession or under the control of Client. Client shall provide CBRE with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary. 12. The data gathered in,the course of the assignment(except dots furnished by Client, -Client Information")and the Report prepared pursuant to the Agreement are, and will remain, the property of CBRE. With respect to Client Information provided by Client, CBRE shall not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential and proprietary Client Information furnished to CBRE. Notwithstanding the foregoing to the contrary,CBRE is authorized by Client to disclose all or any portion of the Report and related data as may be required by applicable law,statute,government regulation, legal process,or judicial decree,including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable CBRE or its employees and agents to comply with the Bylaws and Regulations of the Appraisal Institute as now or hereafter in effect. 13. Unless specifically noted, in preparing the Report CBRE will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, "Hazardous Materials") on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there are no major or significant repairs, improvements or deferred maintenance of the Property that would require the expertise of a professional cost estimator, engineer, architect or contractor. If any such repairs, improvements or maintenance are needed, the estimates for such repairs, improvements or maintenance are to be prepared by other parties pursuant to a separate written agreement in Client's sole discretion and direction, and ore not deemed part of the Services or otherwise covered as part of the fee hereunder. 14. In the event Client intends'o use the Report in connection with a tax matter,Client acknowledges that CBRE provides no warranty,representation or prediction as to the outcome of such tax matter.Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Report or otherwise disagree with Client's tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Report. Client agrees that CBRE shall have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from CBRE relating to any such taxes,interest,penalties or fees imposed on Client, or for any attorneys'fees, costs or other expenses relating to Client's tax matters. 15. LIMITATION OF LIABILITY. NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT TO THE CONTRARY. (A) EXCEPT TO THE EXTENT ARISING FROM SECTION 16, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER PARTY, FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT OR OTHER EXEMPLARY LOSSES OR DAMAGES, WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, REGARDLESS OF THE "FORESEEABILITY OR THE CAUSE THEREOF. (B) EXCEPT TO THE EXTENT ARISING FROM SECTION 16,OR SECTION 17 IF APPLICABLE,AGGREGATE DAMAGES IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES AND COSTS REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO CBRE UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS($10,000) (C) CBRE SHALL HAVE NO LIABILITY WITH RESPECT TO ANY LOSS, DAMAGE, CLAIM OR EXPENSE INCURRED BY OR ASSERTED AGAINST CLIENT ARISING OUT OF, BASED UPON OR RESULTING FROM CLIENT'S OR ANY INTENDED USER'S FAILURE TO PROVIDE ACCURATE OR COMPLETE INFORMATION OR DOCUMENTATION PERTAINING TO ANY SERVICES OR REPORT ORDERED UNDER OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING CLIENT'S OR ANY INTENDED USER'S FAILURE, OR THE FAILURE OF ANY OF CLIENT'S OR ANY Page 1488 of 1993 VALUATION 8 ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement ; CB24US109353 Page 8 of 10 February 3, 2024 INTENDER USER'S RESPECTIVE OFFICERS, DIRECTORS, MEMBERS, PRINCIPALS, AGENTS OR EMPLOYEES, TO PROVIDE A COMPLETE AND ACCURATE COPY OF THE REPORT TO ANY THIRD PARTY. CBRE SHALL HAVE NO LIABILITY WHATSOEVER FOR REPORTS OR DELIVERABLES THAT ARE SUBMITTED IN DRAFT FORM. (D) THE LIMITATIONS OF LIABILITY IN SUBSECTIONS 15(A)AND 15(8)ABOVE SHALL NOT APPLY IN THE EVENT OF A FINAL FINDING BY A COURT OF COMPETENT JURISDICTION THAT SUCH LIABILITY IS THE RESULT OF A PARTY'S FRAUD OR WILLFUL MISCONDUCT. 16. (a) Client shall not disseminate, distribute, make available or otherwise provide any Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Report, in whole or in port, in any offering, including, but not limited to any offering of the Property or any securities offering as defined by applicable low, or other material intended for review by other third parties)except(i)to any third party(o)identified in the Agreement as an Intended User subject to the terms and conditions of this Agreement or(b)otherwise expressly acknowledged in a separate writing executed by CBRE,such third party and Client,setting forth that such third party is on "Intended User"of the Report and providing CBRE with on occeptable release from such third party with respect to such Report or wherein Client provides acceptable indemnity protections to CBRE against any claims resulting directly from the distribution of the Report to such third party; (ii) to any third party service provider(including accountants, attorneys, rating agencies and auditors) using the Report in the course of providing Services for the sole benefit of an Intended User and limited to the Intended Use of the Report as defined in this Agreement, or(iii)to the extent required by applicable law, statute, government regulation, legal process,or judicial decree. (b) In the event CBRE consents, in writing, to Client incorporating or referencing the Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such other materials available to any such parties unless and until Client hos provided CBRE with complete copies of such offering or other materials and CBRE has approved the inclusion of the Report, or reference to the Report and/or CBRE, in such offering and other materials in writing. Further,CBRE's consent to such inclusion of the Report,or reference to the Report and/or CBRE,in any securities offering is subject to(i)CBRE's and CBRE's securities counsel's review and approval,in wnting,of any inclusion of the Report, or reference to the Report and/or CBRE,in such securities offering;(ii)Client shall not modify the Report, any such inclusion of or reference to the Report and/or CBRE in such securities offering once approved by CBRE and its securities counsel in writing;and (iii)Client shall reimburse CBRE for its out-of-pocket costs and expenses, including attorneys' fees,arising from legal review of such securities offering and related materials on CBRE's behalf. (c) In the absence of satisfying the conditions of this Section 16 with respect to any party who is not designated as an Intended User, in no event shall the receipt of a Report by such party extend any right to the party to use and rely on such Report,and CBRE shall hove no liability for such unauthorized use and reliance on any Report. (d) In the event Client breaches the provisions of this Section 16,Client shall indemnify, defend and hold CBRE and its affiliates and their officers, directors, employees, contractors, agents and other representatives (CBRE and each of the foregoing on 'Indemnified Party" and collectively the "Indemnified Parties'), fully harmless from and against all losses, liabilities, damages and expenses (collectively, 'Damages') claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the Report. 17. Time Period,forteaal Action. Unless the time period is shorter under applicable low,except in connection with sedion16 and Section 1 7,CBRE and Client agree that any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based in contract, warranty, indemnity, negligence,strict liability or other tort or otherwise, relating to(a) this Agreement, (b)any Services or Reports under this Agreement or(c) any acts or conduct relating to such Services or Reports, shall be filed within two (2) years from the date of delivery to Client of the Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims,causes of action or damages. 18. Miscellaneous. (a) This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter hereof. This Agreement may not be amended, modified or discharged, nor may any of its terms be waived except by written agreement of both parties. This Agreement may be executed in counterparts,each of which shall be deemed an original, but all of which shall constitute one and the same instrument. A signed copy of this Agreement transmitted by facsimile, email, or other means of electronic transmission shall be deemed to hove the same legal effect as delivery of an original executed copy of this Agreement for all purposes. Page 1489 of 1993 VALUATION &ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement ; CB24US009353 Page 9 of 10 February 3, 2024 (b) Neither party shall assign this Agreement in whole or in port(other than by operation of law)to any person or entity without the prior written consent of the other party. Subject to the foregoing,this Agreement and all of its provisions shall be binding upon and shall inure to the benefit of the parties and their respective successors and permitted assigns. (c) No consent or waiver,either expressed or implied, by a party to or of any breach or default,shall be construed to be o consent or waiver to or of any other breach or default in the performance of any obligations hereunder. Failure of a party to complain or declare the other party in default shall not constitute a waiver by such party of rights and remedies hereunder. (d) Except as hereinafter provided,no delay or failure in performance by a party shall constitute a default hereunder to the extent caused by Force Majeure. Unless the Force Majeure substantially frustrates performance of the Services, Force Majeure shall not operate to excuse, but only to delay, performance of the Services. If Services are delayed by reason of Force Majeure, CBRE promptly shall notify Client. Once the Force Majeure event ceases, CBRE shall resume performance of the Services as soon as possible. As used herein, "Force Majeure' means any event beyond the control of the Party claiming inability to perform its obligations and which such Party is unable to prevent by the exercise of reasonable diligence, including, without limitation, the combined action of workers, fire, acts of terrorism, catastrophes, changes in laws, condemnation of property, governmental actions or delays, national emergency, war, civil disturbance, floods, unusually severe weather conditions,endemic or pandemic,or other acts of God. Inability to pay or financial hardship shall not constitute Force Majeure regardless of the cause thereof and whether the reason is outside o party's control. (e) Any provision of this Agreement that, by its language,contemplates performance or observation subsequent to any termination or expiration of this Agreement shall survive such termination or expiration and shall continue in full force and effect. (f) If arty provision of this Agreement, or application thereof to any person or circumstance, shall to any extent be invalid,then such provision shall be modified,if possible,to fulfill the intent of the parties reflected in the original provision. The remainder of this Agreement, or the application of such provision to person or circumstance other than those as to which it is held invalid,shall not be affected thereby,and each provision of this Agreement shall be valid and enforced to the fullest extent permitted by law. Page 1490 of 1993 VALUATION & ADVISORY SERVICES CITY OF MIAMI BEACH, PUBLIC WORKS DEPARTMENT Assignment Agreement ; CB24US009353 Page 10 of 10 February 3, 2024 SPECIFIC PROPERTY DATA REQUEST In order to complete this assignment under the terms outlined, CBRE, Inc., Valuation & Advisory Services, will require the following specific information for the property: 1. PLEASE NOTIFY US IMMEDIATELY IF ANY OTHER CBRE SERVICE LINE (INCLUDING CAPSTONE) IS INVOLVED IN THE BROKERAGE, FINANCING, INVESTMENT OR MANAGEMENT OF THIS ASSET. If any of the requested data and information is not available, CBRE, Inc., reserves the right to extend the delivery date by the amount of time it takes to receive the requested information or make other arrangements. Please have the requested information delivered to the following: Stuart Lieberman, MAI VAS - Vice President Stuart.Lieberman@cbre.corn CBRE, Inc. Valuation & Advisory Services 777 Brickell Ave, Ste 1 100 Miami, FL 33131 ww,v.cbrc.us/voluotion CBRE Page 1491 of 1993 Addenda Addendum D QUALIFICATIONS 2023 CBRE, Inc. Page 1492 of 1993 Stuart J. Lieberman, MAI CBRE Vice President, Florida-Caribbean RL'ti.io11 Experience Stuart J. Lieberman, MAI is a Vice president with over 30 years of real estate - appraisal and consulting experience. Mr. Lieberman is in the Valuation & Advisory Services Group's Miami office in the South Florida/Caribbean Region. Since 1987, Mr. Lieberman has provided real estate valuation and consulting r. �► services to the financial lending community, institutional clients, government agencies, corporate entities, legal & accounting professionals, developers and private individuals. Mr. Lieberman has experience providing market studies, feasibility studies, highest & best use analysis, market rent studies, expert 41/ testimony & litigation support and portfolio analysis. T +13053816472 Mr. Lieberman's experience encompasses a wide variety of property types M +13053816462 including single & multi-family residential, senior housing, mobile home parks, Stuart.lieberman(cPcbre.com high density urban & ocean front developments, open space & public parks, 777 Brickell Avenue automobile dealerships, service stations & convenience stores, funeral homes, Suite 1100 medical office & surgical centers, mixed-use office, financial institutions & branch Miami, FL 33131 banks, retail shopping centers & regional malls, parking garages, restaurants & night clubs, movie theatres, health & fitness clubs, marinas & shipping terminals, FBOs (fixed base operations), industrial flex warehouses, bulk distribution, truck terminals, refrigeration warehouses, R&D, business parks, self-storage facilities; Clients and, special purpose properties, including bowling alleys, broadcasting facilities, Represented car wash, historical properties, public & private schools, day care facilities, houses of worship & religious facilities, tourist attractions, sport arenas and entertainment venues & theatres. Professional Affiliations / Accreditations • Appraisal Institute- Designated Member No. 12003 • Certified General Real Estate Appraiser, State of Florida License RZ 1074 • Licensed Real Estate Broker-Associate, State of Florida License BK 0477878 --__- Education • University of South Florida,Tampa, FL, BA, Political Science- 1985 • Appraisal Institute, American Institute of Real Estate Appraisers, Society of Real Estate Appraisers and Florida Real Estate Commission core courses, electives and seminars. Page 1493 of 1993 y ':'�''••,6# Ron DeSantis,Governor Melanie S.Griffin,Secretary dFI nda 4,, r ;V— ,i�/ STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIONS OF CHAPTER 475, FLORIDA STATUTES / 7...-.-7 `, i--,;'1. .:: --.--7 _: . LI EBERMAN, STUART JAY � �, 777 BRICKELL AVE SUITE 1100 I f VII ORO 4. MIAMI , FL 33131 - , wiii• • k.r * r ,, ,(iiii:4-'1011 "a•;• .#4, a • LICENSE NUMBER: RZ1074 EXPIRATION DATE: NOVEMBER 30, 2024 Always verify licenses online at MyFloridaLicense.com ' �' • alter this document in anyform. F,:• �::,:'� _• Do notate T''' a • :; �10 This is your license. It is unlawful for anyone other than the licensee to use this document. PARDO LAW PLLC Joseph I. Pardo, Esq. Direct: (305)308-7388 * Email:joe[c�pardolawmiami.com September 23, 2024 Mayor and Commissioners of the City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 RE: PROPOSED CONVEYANCE OF AIR RIGHTS EASEMENT TO MMS 7 FARREY LLC AND FARREY LN DG MASTER PLAN LLC, TENANTS IN COMMON Dear Mayor and Commissioners: I represent MMS 7 Farrey LLC and Farrey Ln DG Master Plan LLC, Tenants in Common("Owner") which together own 6 and 7 Farrey Lane, Miami Beach, Florida(separately, the Properties and, collectively, the "Property"). The Properties are divided by the City right-of- way (Farrey Lane) which ends at a dead end on the western side of the street. Owner is applying to purchase an air rights easement from the City so that Owner can construct a unified, single- family home on the Property (the "Easement"). This application is similar to and follows the same procedure that led to the City's past conveyances of air rights easements (e.g., easements granted over Ocean Court for the Betsy and Tides hotels; and an air rights easement granted to The Jesta Group to construct a pedestrian bridge to connect Essex House with the Clevelander). History and Description of the Project Owner purchased the Properties in late 2021 with plans to build a unified site plan with a single-family home in accordance within current land use regulations. The development plan contemplates an air bridge over the City's right-of-way, for which Owner requires the City's conveyance of the Easement giving rise to this application. A Concept Design for the project is enclosed herewith. The City's conveyance of an Easement to Owner would not convey or affect any floor area ratio on the Properties. Public Purpose The City's grant of the Easement to Owner will benefit the entire Belle Isle community, including all of the condominiums on Belle Isle and the rest of the owners on Farrey Lane. The City's past procedure regarding easements such as this has required the applicant to pay the appraised value of the air rights it proposes to acquire from the City. Here, Owner has proposed paying above fair market value in order to ensure a significant public benefit to the neighbors, and has reached agreement with both (i) a vast majority of owners on Farrey Lane and (ii) Belle Isle Residents Association ("BIRA"). 1205 Lincoln Road, Suite 211 • Miami Beach, Florida 33139 Page 1495 of 1993 page 2 At its March 13, 2024 meeting, the City Commission approved a referral to the Finance and Economic Resiliency Committee ("FERC") to discuss this Easement conveyance. On Marcy 19, 2024, ahead of the FERC meeting, the City's Public Works Department ordered (and Owner paid for) an Appraisal Report to determine the fair market value of the air rights at issue. A copy of the Appraisal Report is enclosed herewith. The Appraisal Report concluded that market value of the air rights was Five Hundred Ninety-Five Thousand ($595,000.00) Dollars. The Appraisal Report additionally noted that the Properties are "a strategic candidate for acquisition and assemblage . . . and a premium in the range of 20% to 50% above market value could be warranted[.]". Based on the Appraisal Report, Owner had several discussions with the City's Public Works Department and ultimately arrived at a 35% premium above market value, for a potential air rights purchase price of Eight Hundred Three Thousand Two- Hundred Fifty ($803,250.00) Dollars. On June 28, 2024, Owner presented to FERC Owner's proposal to purchase the Easement. In support of the item, Owner provided FERC with letters of support from 65% of all of Farrey Lane, including the owner of both of the applicant's direct next-door neighbors at 5 and 8 Farrey Lane, respectively. FERC unanimously recommended the item to the full City Commission. Ahead of and since the June 28, 2024 FERC meeting, and at the urging of Commissioners Magazine and Dominguez, Owner has conferred with BIRA Vice President, Jack Robbins. The BIRA Board met, and on July 29, 2024, Owner and BIRA reached a friendly agreement with respect to this application: • First, BIRA acknowledges Owner's right to develop the Property per current zoning rules and to seek to purchase the air rights Easement requested herein. • Second, BIRA agrees with Owner that the public benefit resulting from Owner's Easement purchase should benefit the entire Belle Isle community; and • Third, and finally, BIRA and Owner are in alignment on a proposed division of the expected public benefit as follows: o 69% in favor of Belle Isle; and o 31% in favor of Farrey Lane Consistent with above, BIRA is not taking any formal action against Owner's proposed Easement Purchase. 1205 Lincoln Road, Suite 211 • Miami Beach, Florida 33139 Page 1496 of 1993 page 3 Bid Waiver Section 82-39 of the City Code requires public bids in connection with transfers of City real estate, unless bids are waived by the City Commission by a 5/7 vote. Here, a bid waiver is appropriate because the only parties that could make use of the subject Easement are the owners of the Properties making this application. Therefore, it would be a waste of City resources to go through a bid process when no one other than Owner could make realistic use of these air rights. Planning Analysis The proposed Easement is consistent with the criteria in Section 82-38 of the City Code, as outlined below: (1) Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city's comprehensive plan The use of the Easement to serve the Properties is consistent with the future land use category description available to the Properties contained in the City's Comprehensive Plan. Owner will not build more than is allowable by right and in accordance with applicable land use regulations. (2) The impact on adjacent properties (if any), including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level, enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is need, the purchaser/lessee shall be responsible for obtaining and paying for a traffic impact analysis from a reputable traffic engineer. Owner and its affiliate own the Properties located on either side of the proposed Easement, and such Properties will benefit from the Easement for the reasons outlined herein. There will be no negative impacts, including no impact on City utilities. Finally, access to the alley will not be impeded due to the clearance height of the anticipated development. Therefore, traffic will not be impacted. (3) A determination as to whether or not the proposed use involves a public purpose, or is in keeping with the community's needs, such as expanding the city's revenue base, reducing city costs, creating jobs, creating a significant revenue stream, and/or improving the community's overall quality of life. 1205 Lincoln Road, Suite 211 . Miami Beach, Florida 33139 Page 1497 of 1993 page 4 The Public Benefit proposed by Owner in this Application is at a premium above the fair market value of the air rights sought. This will be a significant revenue to the City. In addition, and because of the friendly agreement with BIRA, Owner anticipates that the improvements made because of the public benefit will specifically serve the Belle Isle community's overall quality of life. (4) A determination as to whether or not the proposed use is in keeping with the surrounding neighborhood, will block views or create other environmental intrusions, and evaluation of the design and aesthetic considerations of the proposed development or project. The proposed development will be done in accordance with applicable land use regulations and will not result in an increase in the allowable floor area ratio for the Properties. As evidenced by the City's prior approval of bridge connectors for the Betsy and Tides hotels, and other projects on Ocean Court, this Easement is not out of the ordinary. The intended use of the Property (single family home) is consistent with the current allowable use; and, because the proposed development unifies the Properties, it actually avoids one blocked view by 6 Farrey Lane. (5) The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. There will be no adverse impacts to adjacent properties. (6) Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition. Consistent with the City's prior approval process for easements and air rights, Owner will be paying (above) fair market value for the Easement as determined by the Appraisal Report obtained by the City. Consistent with prior applications, Owner would request that the public benefit be paid in at least three (3) installments, conditioned on (i) Owner applying for and receiving a building permit (for which the City would co-sign), (ii) Design Review Board(DRB) approval, and(iii) Owner's issuance of a Certificate of Occupancy for the Property. [End of Letter of Intent] 1205 Lincoln Road, Suite 211 • Miami Beach, Florida 33139 Page 1498 of 1993 page 5 Conclusion For all the above reasons, we respectfully request that the City Commission grant an air rights easement in favor of Owner as indicated herein. Thank you for your consideration and attention to this matter. Sincerely,2se_.. 'g'.,----es) p . Pardo, Esq. Enclosures: Concept Design March 19, 2024 Appraisal Report Sketch and Legal Description Prepared by Survey Pros, Inc. Opinion of Title • 1205 Lincoln Road, Suite 211 • Miami Beach, Florida 33139 Page 1499 of 1993 OPINION OF TITLE To: Mayor and Commissioners of the City of Miami Beach do Office of the City Attorney Attn: Ricardo J. Dopico, City Attorney 1700 Convention Center Drive Miami Beach, Florida 33139 ricardodopico(p�miamibeachfl.gov With the understanding that this Opinion of Title is being furnished to the Mayor and Commission of the City of Miami Beach, as inducement for acceptance of a conveyance from the City of Miami Beach of air rights easement to the owners of the real property located at 6 Farrey Lane, Miami Beach Florida, 33139 and 7 Farrey Lane, Miami Beach Florida, 33139, it is hereby certified that I have examined a complete Title Search Report Nos. 110424948 and 110424958, prepared by First American Title Insurance Company, covering the period from December 13, 2021 to the 23rd day of July, 2024 at the hour of 8:00 a.m. inclusive, of the following property more particularly described in the following: Lot 6, SECOND SECTION BELLE ISLE VILLAS, according to the Plat thereof, recorded in Plat Book 42, Page 100, of the Public Records of Miami-Dade County, Florida Folio No. 02-3233-003-0060 Address: 6 Farrey Lane, Miami Beach, Florida 33139 ("Lot 6") Lot 7, SECOND SECTION BELLE ISLE VILLAS, according to the Plat thereof, recorded in Plat Book 42, Page 100, of the Public Records of Miami-Dade County, Florida Folio No. 02-3233-003-0070 Address: 7 Farrey Lane, Miami Beach, Florida 33139 ("Lot 7") As to Lot 6 Warranty Deed, dated October 26, 2021, and recorded in Official Records Book 32828, at Page 3063, of the Public Records of Miami-Dade County, Florida, attached hereto as Exhibit "A" (the "* Lot 6 Warranty Deed"): Quit Claim Deed, dated June 26, 2024, and recorded in Official Records Book 34295, at Page 350, of the Public Records of Miami-Dade County, Florida, attached hereto as Exhibit "B" (the "* Lot 6 Quit Claim Deed"): As to Lot 7 Warranty Deed, dated December 3, 2021, and recorded in Official Records Book 32899, at Page 3535, of the Public Records of Miami-Dade County, Florida, attached hereto as Exhibit "C" (the "* Lot 7 Warranty Deed"): Page 1500 of 1993 Quit Claim Deed, dated June 26, 2024, and recorded in Official Records Book 34294, at Page 4349, of the Public Records of Miami-Dade County, Florida, attached hereto as Exhibit "D" (the "' Lot 7 Quit Claim Deed"): lam of the opinion that on the last-mentioned date, the fee simple title to the above-described real property was vested in: MMS 7 FARREY LLC, A FLORIDA LIMITED LIABILITY COMPANY AS TO 50%AND FARREY LN DG MASTER PLAN, LLC, A DELWARE LIMITED LIABILITY COMPANY, AS TO 50%, AS TENANTS IN COMMON The Persons authorized to execute are: For MMS 7 FARREY LLC: Gregory Mirmelli For FARREY LN DG MASTER PLAN, LLC: Daniel Kodsi Subject to the following encumbrances, liens and other exceptions (If"none" please indicate): 1. Unsatisfied Encumbrances As to Lot 6 Mortgage, Assignment of Rents and Security Agreement dated October 25, 2021, and recorded in Official Records Book 32828, at Page 3065, of the Public Records of Miami-Dade County, Florida 06/24 Mortgage Modification and Future Advance Agreement dated June 26, 2024, and recorded in Official Records Book 34295, at Page 352, of the Public Records of Miami-Dade County, Florida UCC Financing Statement dated June 26, 2024, and recorded in Official Records Book 34295, at Page 359, of the Public Records of Miami-Dade County, Florida As to Lot 7 Mortgage, Assignment of Rents and Security Agreement dated December 2, 2021, and recorded in Official Records Book 32899, at Page 3537, of the Public Records of Miami-Dade County, Florida Mortgage and Security Agreement dated August 23, 2022, and recorded in Official Records Book 33351, at Page 371, of the Public Records of Miami-Dade County, Florida Assignment of Leases and Rents dated August 23, 2022, and recorded in Official Records Book 33351, at Page 391, of the Public Records of Miami-Dade County, Florida UCC Financing Statement dated August 23, 2022, and recorded in Official Records Book 33351, at Page 399, of the Public Records of Miami-Dade County, Florida 2 Page 1501 of 1993 Subordination of Mortgage Documents dated June 13, 2024, and recorded in Official Records Book 34294, at Page 4351, of the Public Records of Miami-Dade County, Florida 06/24 Mortgage Modification Agreement dated June 26, 2024, and recorded in Official Records Book 34294, at Page 4354, of the Public Records of Miami-Dade County, Florida Mortgage Modification Agreement dated June 26, 2024, and recorded in Official Records Book 34294, at Page 4361, of the Public Records of Miami-Dade County, Florida UCC Financing Statement dated June 26, 2024, and recorded in Official Records Book 34294, at Page 4367, of the Public Records of Miami-Dade County, Florida 2. RECORDED CONSTRUCTION LIENS, CONTRACT LIENS AND JUDGMENTS: As to Lot 6: None As to Lot 7: None 3. Special Easements, Restrictions, and Other Matters Affecting Title As to Lot 6 and Lot 7: Restrictions, Dedications, Conditions, Reservations, Easements on the Plat of Second Section Belle Isle Villas, recorded in Plat Book 42, Page 100, of the Public Records of Miami-Dade County, Florida Easement Granted to Southern Bell Telephone and Telegraph Company recorded under Clerk's File No. T-66446 Reservation of the Oil, Gas, and Mineral Rights recorded in Official Records Book 135, at Page 274, of the Public Records of Miami-Dade County, Florida [End of Opinion — Certification on Following Page] 3 Page 1502 of 1993 I HEREBY CERTIFY that I have reviewed all the encumbrances and exceptions and that none of them hinder or affect the recording or enforcement of the conveyance of air rights easement. Therefore, it is my opinion that the following party(ies) must join in the agreement in order to make the Covenant a valid and binding covenant on the lands described herein: MMS 7 FARREY LLC, A FLORIDA LIMITED LIABILITY COMPANY AS TO 50% AND FARREY LN DG MASTER PLAN LLC, A DELWARE LIMITED LIABILITY COMPANY, AS TO 50%, AS TENANTS IN COMMON I HEREBY CERTIFY that the legal description contained in this Opinion of Title coincides with, and is the same as, the legal description in the proffered, recordable agreement. [Notary on Following Page] 4 Page 1503 of 1993 I, the undersigned, further certify that I am an attorney-at-law duly adm tted to practice in the State of Flonda and a member in good standing of the Fkxida Bar. Respec tfu€ly submitted this ay of August 2024 Att° • i Pardo sq. Florida Bar •. 1003339 STATE OF FLORIDA COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me, by means of ( 4ysicai presence or ( )oniine notarization Witness my signature and official seal this 12- day of t "Sr in the Courty and State aforesaid My Com fission Expires: C.3' a /24' Notary Pubic-State of ct4 -+ok Print Nagle is [Ma WOW ,a , a morn PUMk Pir Fire 4 two.,ee+•s tits 1.2eIM mow ssww ealosi Wiry rw. Page 1504 of 1993 PARDO LAW PLLC Joseph I. Pardo, Esq. • Direct:(305)308-7388 Email:joeftardolawmiami.COm Via Email To: Members of the City of Miami Beach Finance and Economic Resiliency Committee ("Committee") c/o Fiorella Sarmiento, Public Works Administrator fiorellasarmiento@miamibeachfl.gov Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC ("Item") Good afternoon FERC Committee Members: Enclosed, please find Letters of Support for the above referenced Item, signed by Farrey Lane community members at: • I Farrey Lane(Rabbi Shmuel Mann) 3 Farrey Lane(Hans Werner) •5 Farrey Lane (Alex Bichel) . 6 Farrey Lane(Mushka Rapapport—current Tenant) • 8 Farrey Lane(Steve Rhodes) •10 Farrey Lane(Marc Edelstein) • 12 Farrey Lane(Steve Rhodes) . 14 Farrey Lane(Rabbi Shmuel Mann) .36 Island Ave(ISLAND APARTMENT ASSOCIATES LLC,c'o Marc Edelstein) These letters were gathered in just 24 hours, and are notwithstanding that several community members are out of town for the summer. Together with the applicant MMS 7 Farrey Lane LLC, these letters represent approximately 65% of all of Farrey Lane; and include both of the applicant's direct next door neighbors. Please note that Mr. Edelstein is also the owner's representative of the entire apartment complex next door at 36 Island Avenue. I trust that these letters give comfort to the FERC Committee by way of community support. I look forward to seeing each of you at the upcoming June 28, 2024 FERC Committee hearing and seeing this Item passed. Sincerely, seph . Par o, . Page 1505 of 1993 To: Members of the City of Miami Beach Finance and Economic Resiliency Committee ("Committee") Chair: Commissioner Joseph Magazine Vice Chair: Commissioner Kristen Rosen Gonzalez Member: Commissioner Tanya Bhatt Member: Commissioner Alex Fernandez Liaison: Jason Greene Support Staff: Nattaly Cuervo Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC("Item") Dear Committee Members: I am a resident of Belle Isle/Farrey Lane neighborhood. Through this letter, I support and strongly encourage you to recommend to the City Commission your approval of the above referenced Item, to be presented to the Committee on June 28, 2024. As a member of the community, I believe that the proposed project at 6 & 7 Farrey Lane will be a beautiful and welcome addition to the neighborhood. Thank you for your consideration and for your continued service to the City of Miami Beach. Respectfully, Name: Rabbi Shmuel Mann Address: 1 Farrey Lane and 14 Farrey Lane Page 1506 of 1993 To: Members of the City of Miami Beach Finance and Economic Resiliency Committee("Committee") Chair: Commissioner Joseph Magazine Vice Chair:Commissioner Kristen Rosen Gonzalez Member: Commissioner Tanya Bhatt Member: Commissioner Alex Fernandez Liaison: Jason Greene Support Staff: Nettaly Cuervo Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC("Item") Dear Committee Members: I am a resident of Belle Isle/Farrey Lane neighborhood. Through this letter, I support and strongly encourage you to recommend to the City Commission your approval of the above referenced Item, to be presented to the Committee on June 28, 2024. As a member of the community, I believe that the proposed project at 6 & 7 Farrey Lane will be a beautiful and welcome addition to the neighborhood. Thank you for your consideration and for your continued service to the City of Miami Beach. Respectfully, Name: Address: r 2�'t L /�'�A' " i�G 16/1( Page 1507 of 1993 To: Members of the City of Miami Beach Finance and Economic Resiliency Committee("Committee") Chair: Commissioner Joseph Magazine Vice Chair: Commissioner Kristen Rosen Gonzalez Member: Commissioner Tanya Bhatt Member: Commissioner Alex Fernandez Liaison:Jason Greene Support Staff: Nattaty Cuervo Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC("Item") Dear Committee Members: I am a resident of Belle Isle/Farrey Lane neighborhood. Through this letter, I support and strongly encourage you to recommend to the City Commission your approval of the above referenced Item, to be presented to the Committee on June 28, 2024. As a member of the community, I believe that the proposed project at 6 & 7 Farrey Lane will be a beautiful and welcome addition to the neighborhood. Thank you for your consideration and for your continued service to the City of Miami Beach. Respectfully, 1'wF -1 1 J Name: ' t Address: - i Page 1508 of 1993 To: Members of the City of Miami Beach Finance and Economic Resiliency Committee("Committee") Chair: Commissioner Joseph Magazine Vice Chair: Commissioner Kristen Rosen Gonzalez Member: Commissioner Tanya Bhatt Member: Commissioner Alex Fernandez Liaison:Jason Greene Support Staff: Nattaty Cuervo Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC ("Item") Dear Committee Members: I am a resident of Belle Isle/Farrey Lane neighborhood. Through this letter, I support and strongly encourage you to recommend to the City Commission your approval of the above referenced Item, to be presented to the Committee on June 28, 2024. As a member of the community, I believe that the proposed project at 6 & 7 Farrey Lane will be a beautiful and welcome addition to the neighborhood. Thank you for your consideration and for your continued service to the City of Miami Beach. Respectfully, Name: Mushka Rapapport Address: 6 Farrey Lane Page 1509 of 1993 To: Members of the City of Miami Beach Finance and Economic Resiliency Committee ("Committee") Chair: Commissioner Joseph Magazine Vice Chair: Commissioner Kristen Rosen Gonzalez Member: Commissioner Tanya Bhatt Member: Commissioner Alex Fernandez Liaison: Jason Greene Support Staff: Nattaly Cuervo Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC ("Item") Dear Committee Members: I am a resident of Belle Isle/Farrey Lane neighborhood. Through this letter, I support and strongly encourage you to recommend to the City Commission your approval of the above referenced Item, to be presented to the Committee on June 28, 2024. As a member of the community, I believe that the proposed project at 6 & 7 Farrey Lane will be a beautiful and welcome addition to the neighborhood. Thank you for your consideration and for your continued service to the City of Miami Beach. Respectfully, 6:11, 2024 Name: Steve Rhodes, owner of: Address: 8 and 12 Farrey Lane Page 1510 of 1993 To: Members of the City of Miami Beach Finance and Economic Resiliency Committee("Committee") Chair: Commissioner Joseph Magazine Vice Chair: Commissioner Kristen Rosen Gonzalez Member: Commissioner Tanya Bhatt Member: Commissioner Alex Fernandez Liaison:Jason Greene Support Staff: Nattaty Cuervo Re: Conveyance of Air Rights Easement, MMS 7 Farrey Lane LLC ("Item") Dear Committee Members: I am an Owner in the Farrey Lane neighborhood. Through this letter, I support and strongly encourage you to recommend to the City Commission your approval of the above referenced Item, to be presented to the Committee on June 28, 2024. As a member of the community, I believe that the proposed project at 6 & 7 Farrey Lane will be a beautiful and welcome addition to the neighborhood. Thank you for your consideration and for your continued service to the City of Miami Beach. Respectfully, 11 ED Name: Marc Edelstein Address: 10 Farrey Lane Page 1511 of 1993