20110309 Supplemental reducedMIAMIBEACH
City Commission Meeting
SUPPLEMENTAL MATERIAL
City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive
March 9,2011
Mayor Matti Herrera Bower
Vice-Mayor Jonah Wolfson
Commissioner Jorge Exposito
Commissioner Michael Gbngora
Commissioner Jerry Libbin
Commissioner Edward L. Tobin
Commissioner Deede Weithorn
City Manager Jorge M. Gonzalez
City Attorney Jose Smith
City Clerk Robert E. Parcher
Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
SUPPLEMENTAL AGENDA
C7 - Resolutions
C7K A Resolution Accepting An Easement For A Bicycle Rental Kiosk On A Portion Of The Whole
Foods Market Site, Located At 1020 Alton Road, Miami Beach, Florida, And Authorizing The
Mayor And City Clerk To Execute The Easement.
(Parking Department)
(Resolution & Exhibit "A")
Supplemental Agenda, March 9, 201 1
R7 - Resolutions
R7C A Resolution Supporting And Endorsing, In Concept, The Project To Renovate And Expand The
Miami Beach Convention Center, As Discussed At The City's Finance And Citywide Projects
Committee At Its February 24,201 1 Meeting, Including The Development Of An Adjacent Convention
Center Hotel, And Exploring The Opportunity To Re-Mass And/or Re-Design The Project Without
The Constraints Of Current Zoning Restrictions For The Project Area, Nor Constrained By The
Conceptual Renderings Included In The Presented Master Plan; Authorizing The City Manager To
Pursue Legislative Action With Miami-Dade County, The State Of Florida And The United States
Federal Government To Fund The Estimated $640 Million Project; Further Authorizing The City
Manager To Pursue Private Sector Interest In Participation In The Project And Authorizing The City
Manager To Issue An RFQ To Secure Consulting Expertise To Explore Public-Private Development
Alternatives And Financing Opportunities For The Project.
(Tourism & Cultural Development)
(Memorandum & Resolution)
R7E A Resolution Terminating The Agreement For Sale And Purchase Of Real Property, Dated April 14,
201 0, Between The City And American Riviera Real Estate Company (Seller), For The Real Property
Located At 340 23rd Street, Miami Beach, Florida; And Further Authorizing The City Manager And City
Attorney To Take Any And All Action(s), As Required, In Order To Effectuate Said Termination.
(Memorandum & Resolution)
R9 - New Business and Commission Requests
R9E Discussion Regarding A Resolution Authorizing The Waiver Of The $850.00 Colony Theater Rental
Fee For The Ability Explosion Event To Be Held On October 20, 201 1.
(Requested by Commissioner Michael Gongora)
(Resolution)
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND THE ClTY COMMISSION OF THE
CITY OF MlAMl BEACH, FLORIDA, ACCEPTING AN EASEMENT FOR A
BICYCLE RENTAL KIOSK ON A PORTION OF THE WHOLE FOODS
MARKET SITE, LOCATED AT 1020 ALTON ROAD, MlAMl BEACH,
FLORIDA, AND AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE THE EASEMENT.
WHEREAS, on July 15, 2009, the City approved Resolution No. 2009-27142, approving a
concession agreement between the City and Deco Bike, LLC (Deco Bike) for the implementation,
management, and operation of a public self-service bicycle rental and sharing program, which
includes the installation, operation, and maintenance of bike rental kiosks in areas throughout the
City of Miami Beach; and
WHEREAS, Forte Ltd. (Grantor) owns the real property located at 1020 Alton Road, the
Whole Foods supermarket (the "Property"); and
WHEREAS, the City and Deco Bike wish to place a bicycle rental kiosk on a portion of the
Property, more specifically described in the Bicycle Rental Kiosk Easement; and
WHEREAS, the City and Grantor have reviewed the Bicycle Rental Kiosk Easement and
have agreed to its terms and conditions; and
WHEREAS, the City Commission finds it is in the City's interest to accept the Bicycle Rental
Kiosk Easement so that a bicycle rental kiosk is installed at the Property.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE ClTY OF MlAMl BEACH, FLORIDA, that the Mayor and City Commission hereby accept
the Bicycle Rental Kiosk Easement, for a Bicycle Rental Kiosk on a portion of the Whole Foods
Market site, located at 1020 Alton Road, Miami Beach, Florida, and authorize the Mayor and City
Clerk to execute the Bicycle Rental Kiosk Easement.
PASSED AND ADOPTED this gth day of March 2011.
ATTEST:
ClTY CLERK
1 rev
MAYOR
Date &?-l(
SUBJECT
BLOCK 84
P.5. 7, PG. 160, D.C.R.
--------
SW CORNER OF
LOT 13, BLOCK 84
P.B.7, PG. 160, D.C.R.
70th STREET
(70' RIGHT-OF-WAY, P.B. 7-760)
LEC3AL DESCRIPTION:
A parcel of land for an easement, being a portlon of Lot 13, Block 84,
''THRD COMMERCIAL SUBDIVISION" according to the Plat thereof a3
LEGIE;NDr
D.C.R. - WI.DAOE CWNN WEUC RECORDS
recorded in Plat Book 7, Page 180, of the Public Records of Miami-Dade LB . UCPIBEDBUSINESS
County. florida, said parcel being more particulady described a6 follows: P.S. - PLATBOON
PO. - PA%
COMMENCE at the Southwest corner of said Lot 13, thence N0Z018'28"W P.o.~ - P~NT OF BEGINNING
along the Westerly line of said Lot 13, for 8.23 feel to the POINT OF P.O.C. - POWT OF COMMENCEMENT
BEGINMIIUO; thence conUnw N02'78'28"W for 39.00 fear thence RW . WM-OF-WAY
NB7'41'32"E for 8.50 feet; thence S0?'1828"E for 38.00 feet thence
S87V1'32"W for 8.50 feat to the POINT OF BEGINNING.
All of the abova described lands, lying and being in Section 4. Tmshlp 54
Soulh, Range 42 East, and containing 0.0076 acres more w less.
right-of-way Une of West Avenue, being the West line of clock 84 of "THIRD
COMMERCIAC SUBDIVISION', as recorded In Plal Book 7, Page 160 of the Publlc
Raconfe of Miami-Dad8 County, Florida.
6. Rsfcxmce Is mad8 Lo a Boundary and T~pographic Sunray d the Parent Tract by
6. Ths subject easement ll8~ tn fraotlonal Ssotbn 4. TownshIp 54 Soulh. Range 42 East.
CRY ol Mlami Beach, MIaml-Dade County, Florida
7. Thls is no( a survey d any parcel of la&.
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Supporting And Endorsing, In Concept, The Project To Renovate And Expand The Miami Beach Convention Center, As
Discussed At The City's Finance And Citywide Projects Committee, Including The Development Of An Adjacent Convention Center
Hotel, And Exploring The Opportunity To Re-Mass AndlOr Re-Design The Project Without The Constraints Of Current Zoning
Restrictions For The Project Area, Nor Constrained By The Conceptual Renderings Included In The Presented Master Plan; Authorizing
The City Manager To Pursue Legislative Action To Fund The Estimated $640 Million Project, To Pursue Private Sector Interest In
Participation In The Project, And To Issue An RFQ To Secure Consulting Expertise To Explore Public-Private Development
Alternatives And Financing Opportunities For The Project.
Key Intended Outcome Supported:
Improve the Convention Center Facility.
Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey indicated that residents attended
events at the convention center 2.7 times per vear.
Issue: I Shall the Mayor and City Commission approve the Resolution? I
tem SummarylRecommendation:
Discussions regarding enhancements to the Miami Beach Convention Center (MBCC) have been ongoing for almost ten years and
resulted in the 2008 direction to proceed with a Master Plan for the MBCC. As part of that process, Convention Sports and Leisure
(CSL) conducted a new study focused on, among other things, identifying current industry trends, competitivelcomparable facility
analysis, existing and projected utilization at the Convention Center, and a market demand analysis. A competitive process was issued
for the selection of the master plan architect to create a vision for the implementation of the identified needs, and others that might be
identified; Arquitectonica was competitively selected as the master plan architect. Additionally, in January 201 0, in an effort to ensure
additional feedback beyond the CSL study, a Steering Committee was created to provide input to the City and Arquitectonica relating to
the proposed MBCC expansion. The Steering Committee (and four subcommittees) met numerous times throughout 201 0 and
established nine (9) goals for the master plan process. An important aspect of the master plan process involves community input to
minimize the potential impact of this project on neighbors, as well as solicit feedback. Several meetings were held with representatives
of the Miami Beach Botanical Garden, Holocaust Memorial, and the Palm View Neighborhood Association. Additionally, a publicly-
noticed Community Design Workshop was held at the Convention Center on May 13, 201 0, with approximately 100 members of the
public present.
The culmination of the master plan process is the development and submission of a final report. The Master Plan and Final report was
presented to and approved by the Steering Committee at its February4,2011 meeting. The report has previously been provided to the
Mayor and City Commission. A copy of the report has also been made available to the public on the City's website
(htt~:llw.miamibeachfl.aov/newslscrollaspx?id=58484). The Final Report was presented to the Finance and Citywide Projects
Committee. as referenced below. The Administration recommends a~~roval of the Resolution.
Advisory Board Recommendation:
On February 24,201 1, The Finance Committee voted unanimously to conceptually endorse and in concept support the renovation and
expansion of the MBCC to address the needs identified (multi-uselballroom space, more meeting rooms, upgrades to technology,
outdoor venue, etc), including the development of an adjacent Convention Center Hotel, and the opportunity to revisit the massing and
design of the project. The Committee also supported authorizing the City Manager to pursue private sector interest in joint development
alternatives for the Master Plan, without being constrained by current zoning limitations for the site (as was the case with the original
Master Plan development) or by the current conceptual design, as well as securing any consulting expertise required to assist with such,
and pursuing any legislative action for funding.
City Clerk's Office Legislative Tracking: I Max A. Sklar, Tourism and Cultural Development Director
Financial Information:
ACEMDA ITEM
am^ 3-9-11
Source of
Funds:
I
OBPl
Financial Impact Summary:
1
- 2
Total
Amount Account
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33 139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
/
FROM: Jorge M. Gonzalez, City Manager
DATE: March 9, 201 1
u
SUBJECT: A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, SUPPORTING AND ENDORSING, IN CONCEPT, THE PROJECT
TO RENOVATE AND EXPAND THE MIAMI BEACH CONVENTION CENTER, AS
DISCUSSED AT THE CITY'S FINANCE AND CITYWIDE PROJECTS COMMITTEE AT
ITS FEBRUARY 24, 2011 MEETING, INCLUDING THE DEVELOPMENT OF AN
ADJACENT CONVENTION CENTER HOTEL, AND EXPLORING THE OPPORTUNITY
TO RE-MASS AND/OR RE-DESIGN THE PROJECT WITHOUT THE CONSTRAINTS OF
CURRENT ZONING RESTRICTIONS FOR THE PROJECT AREA, NOR CONSTRAINED
BY THE CONCEPTUAL RENDERINGS INCLUDED IN THE PRESENTED MASTER
PLAN; AUTHORIZING THE ClTY MANAGER TO PURSUE LEGISLATIVE ACTION
WITH MIAMI-DADE COUNTY, THE STATE OF FLORIDA AND THE UNITED STATES
FEDERAL GOVERNMENT TO FUND THE ESTIMATED $640 MILLION PROJECT;
FURTHER AUTHORIZING THE ClTY MANAGER TO PURSUE PRIVATE SECTOR
INTEREST IN PARTICIPATION IN THE PROJECT AND AUTHORIZING THE ClTY
MANAGER TO ISSUE AN RFQ TO SECURE CONSULTING EXPERTISE TO EXPLORE
PUBLIC-PRIVATE DEVELOPMENT ALTERNATIVES AND FINANCING
OPPORTUNITIES FOR THE PROJECT.
BACKGROUND
Discussions reaardina enhancements to the Miami Beach Convention Center (MBCC or the Convention
Center) have been ongoing for almost ten years, dating back to an October 2001 report from Convention
Sports & Leisure (CSL) commissioned by the Greater Miami Convention and Visitors Bureau (GMCVB), in
partnership with the City, which analyzed the status of convention and meeting facilities in Miami-Dade
County, as well the competitive standing of these facilities. The CSL report concluded that, given the
MBCC's geographic draw, no new facility should be planned elsewhere in Miami-Dade County but, instead,
improvements to MBCC (including a multi-purpose general assemblylbanquet hall) should be made to
increase the marketability of the Convention Center and of the region.
In 2004, the Building Better Communities General Obligation Bonds Program was approved Countywide,
and included a total of $55 million for Convention Center enhancement and expansion. The availability of
this funding prompted further discussion among interested stakeholders (e.g. representatives of the
Convention Center Advisory Board, the Miami Beach Visitors and Convention Authority, the GMCVB, the
Greater Miami and the Beaches Hotel Association, Miami-Dade County, the Convention Center managers
[SMG and now Global Spectrum] and City staff) and subsequent updates to the CSL report.
As a result, at the April 11, 2007 City Commission Meeting, the City Commission passed a motion
supporting a proposed MBCC expansion (to include a ballroom, retrofit of space to accommodate new
meeting rooms, and renovations to the northwest ballroom to create a "junior ballroom"), subject to the
County funding all costs associated with the project, and the County managing the renovations1construction
process.
Following several attempts to meet with the County to discuss funding availability and the scope of the
project, at a meeting between the City and County Mayors and Managers in April 2008, a new plan of action
was agreed upon that would have the City and County, in conjunction with interested stakeholders, develop
MBCC Expansion
March 9, 201 1
Page 2 of 4
a long-term vision and Master Plan for this regional convention center. This Master Plan was intended to
look "outside of the box" at possibilities to make MBCC competitive in today's convention and meeting
business climate. This would involve looking at existing and potential site amenities, physical renovations to
the interior and exterior, expansion of exhibit space (to include necessary multi-purpose/ballroom space),
technology upgrades, parking, etc.
MASTER PLAN PROCESS
Needs Assessment
As part of the Master Plan development process, the GMCVB contracted with CSL to conduct a new study
focused on, among other things: identifying current industry trends; competitive/comparable facility analysis;
existing and projected utilization at the Convention Center; and a market demand analysis. CSL would also
work jointly with a selected architectural firm, and with the stakeholders, in developing a proposed Master
Plan that would incorporate research-driven improvements focused on making the Convention Center
competitive and marketable.
The CSL report identified the following needs:
Multi-Purpose/Ballroom Space: MBCC is lacking a multi-uselballroom space designed to
accommodate food function, general sessions, product demonstrations, seminars and related
functions.
Meeting Space: The current meeting space at MBCC ranks near mid-range of competitive and
comparable facilities. However, meeting space needs industry-wide tend to increase faster than
exhibit space, and future expansion of MBCC should consider additional meeting space.
Unique Features: To distinguish it from other facilities, unique features in architecture, public art and
outdoor event space, which are authentic to Miami Beach, should be incorporated into an
expansion.
Destination Planning and Development of a Convention Center District: Event planners have
increasingly cited a "walkable" environment surrounding the Convention Center as an important site
amenity. Any expansion should create visual and pedestrian linkages between the surrounding
districts to create a coordinated look and feel (i.e. signage, landscaping, pavement material, etc.)
Convention Center Headquan'er Hotel: Most major market convention centers have benefited from
an adjacent or attached headquarter hotel, typically ranging from 700 - 1,200 rooms. The lack of
such a property adjacent to the MBCC is a competitive disadvantage in booking high-impact
conventions and tradeshows.
A copy of the full CSL Report has been previously provided to you.
Master Plan Development
A competitive process was issued for the selection of the Master Plan architect to create a vision for the
implementation of those needs, and others that might be identified. Arquitectonica was competitively
selected as the Master Plan architect.
Additionally, in January 2010, in an effort to ensure that the process was guided with additional feedback
beyond the CSL report, I convened a Miami Beach Convention Center and Conference Facility Expansion
Steering Committee to provide input to the City and Arquitectonica relating to the proposed MBCC
expansion. This group (expanded beyond the group of original stakeholders that had been providing input
on the Convention Center's needs) included representation from PricewaterhouseCoopers's Hospitality
Division, Lincoln Road Merchants Association and the residenvbusiness community, as well as users of the
facility, such as the Jewelry International Showcase, Reed Exhibitions, Latin America, and National Marine
Manufacturers Association. (See Letter to Commission (LTC) # 366-2009, Attachment A hereto, for the
detailed list of Steering Committee members).
The Steering Committee met numerous times throughout 201 0 and also established four (4) subcommittees
MBCC Expansion
March 9,201 1
Page 3 of 4
(Functionality, Programming, Big Ideas, and Community) to discuss specific subjects in more detail. The
Steering Committee established nine (9) goals for the Master PIan process. (See Attachment B).
Master PIan Recommendations
Using the information from the CSL report and input from the Steering Committee, Arquitectonica developed
a preliminary Master Plan that recommended several specific enhancements for the facility, including:
Re-orient the entrance of the Convention Center to create a new fagade with a main entrance facing
south towards Lincoln Road, to address existing operational challenges and connect the facility with
nearby amenities (e.g. Lincoln Road, NWS, etc);
Establish a new lobby and a new covered drop-off street running east-west along 18' Street,
between The Fillmore and City Hall;
Add approximately 213,000 square feet of additional exhibit space (for a total of 715,000 square
feet); a 60,000 square foot multi-purpose ballroom; a 21,600 square foot junior ballroom; an
additional 82,000 square feet of meeting rooms; and an approximately 1,500 space parking garage
structure. This area would take up the current location of the Convention Center Preferred Parking
Lot and Convention Center Drive;
Add a 100,000-square-foot plaza and add outdoor meeting space (terraces) to take advantage of
the local climate;
Incorporate into the new facility (and update the existing facility with) the latest technologies;
Address "massing" issues with architectural designs that terrace the facility away from the Holocaust
Memorial, Botanical Garden, and Meridian Avenue;
Add "green" components to the new and existing space (to achieve LEED certification); and
Identify potential locations for an adjacent Convention Center hotel.
As importantly, based on City Commission direction, Arquitectonica was to work within existing zoning
restrictions for the expansion area. The result was a design that addressed the issues and needs identified
by CSL and the Stakeholders, but did so with a design that compensated for the height limitations with a
building expansion that has sizeable massing. Consequently, this massing not only provides limited green
space, but also raised concerns about the impact of this massing on the neighborhood and neighbors.
These limitations also narrowed the potential locations for the placement of a highly-recommended
Convention Center headquarters hotel.
Community Input
The Master Plan process involved community input to minimize the potential impact of this project on
neighbors, as well as solicit feedback on the proposed project. In addition to the Steering Committee's
Community Sub-committee, several meetings were held with representatives of the Miami Beach Botanical
Garden, Holocaust Memorial, and the Palm View Neighborhood Association. In addition, a publicly-noticed
Community Design Workshop was also held at the Convention Center on May 13,2010, with approximately
100 members of the public present. Needless to say, there will be continued opportunities for additional
community input as this process moves forward.
MASTER PLAN REPORT
The culmination of the Master Plan process is the development and submission of a final report. The Master
Plan and Final Report was presented to the Steering Committee for its review and consideration at its
February 4, 201 1 meeting. The Steering Committee reviewed and endorsed the Master Plan and the
Report. The Report had also previously been provided to the Mayor and City Commission. A copy of the
Report has also been made available to the public on the City's website
(http://www.miamibeachfl.~ov/news/scroll.as~x?id=58484).
As is customary, the document includes project history and analysis (including civil, traffic, functional
planning, food service, life-safety, MEP, structural, sustainability); site and district analysis; proposed site
and building design; functional design; neighborhood impacts; phasing considerations; potential Convention
MBCC Expansion
March 9, 201 1
Page 4 of 4
Center hotel sites; long term options; and a projected cost analysis. The Report also addresses potential
project phasing, acknowledging, among other things, the need to maintain the current facility operational.
The renderings in the report also provide options for the placement of a Convention Center hotel adjacent to
the facility, should that option be pursued in the future (the hotel placement options are presented in the
renderings as placeholders, as the proposed expansion plans are being designed in a manner that would
not forestall the ability to develop a Convention Center hotel in the future, should that be desired).
On February 24, 201 1, the Finance and Citywide Projects Committee met to consider the Master Plan
Report (including the option of a Convention Center hotel). The City Manager, Arquitectonica, CSL and the
Washington Economic Group (WEG) presented the Master Plan; research from CSL's 2009 strategic
facilities analysis, as well as the result of economic impact findings from CSL and WEG. The Economic
Impact Analysis is provided under separate cover. The Finance Committee presentation is attached hereto
(see Attachment C).
The Finance Committee voted unanimously to conceptually endorse and in concept support the renovation
and expansion of the Miami Beach Convention Center to address the needs identified (multi-use/ballroom
space, more meeting rooms, upgrades to technology, outdoor venue, etc), including the development of an
adjacent Convention Center Hotel. One of the reasons of the Committee's support of the Plan in concept
was to ensure that the City still had the flexibility and discretion to evaluate the project and explore options
including, in particular, revisiting the massing and the design of the project without the constraint of current
zoning restrictions in the project area. The Committee also supported authorizing the City Manager to
pursue private sector interest in the project, including potential joint development alternatives, without being
constrained by current zoning limitations for the site (as was the case with the original Master Plan
development) or by the current conceptual design, as well as authorizing the City Manager to issue a
competitive process to secure any consulting expertise required to assist with such.
Finally, the Committee recommended authorizing the City Manager to pursue legislative action, both locally,
and at the State and federal levels, to help fund the estimated $640 million project.
CONCLUSION:
The Administration will continue to keep the City Commission informed as different elements of the process
move forward. As future actions are required, they will be presented first to the Finance and Citywide
Projects Committee, before ultimately being presented to the full City Commission for consideration.
In the meantime, and pursuant to the recommendation of the Finance and Citywide Projects Committee
following their discussion on the Convention Center project, the Administration recommends adopting the
attached Resolution endorsing and supporting in concept the project to renovate and expand the Miami
Beach Convention Center, including an adjacent Convention Center hotel; authorizing the City Manager to
pursue private sector interest in the project, including potential joint development alternatives, without being
constrained by current zoning limitations for the site or by the current conceptual design; as well as
authorizing the City Manager to issue a competitive process to secure any consulting expertise required to
assist with the project. It is also recommended that the City Manager be authorized to pursue legislative
action with Miami-Dade County, the State of Florida, and the federal government to fund the estimated $640
million project.
JMG/HMF/MAS
T:\AGENDAY2011\3-09-1 IWIBCC Expansion Master Plan Memo .doc
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE ClTY OF
MIAMI BEACH, FLORIDA, SUPPORTING AND ENDORSING, IN CONCEPT, THE
PROJECT TO RENOVATE AND EXPAND THE MIAMI BEACH CONVENTION
CENTER, AS DISCUSSED AT THE CITY'S FINANCE AND CITYWIDE PROJECTS
COMMITTEE AT ITS FEBRUARY 24, 2011 MEETING, INCLUDING THE
DEVELOPMENT OF AN ADJACENT CONVENTION CENTER HOTEL, AND
EXPLORING THE OPPORTUNITY TO RE-MASS AND/OR RE-DESIGN THE
PROJECT WITHOUT THE CONSTRAINTS OF CURRENT ZONING
RESTRICTIONS FOR THE PROJECT AREA, NOR CONSTRAINED BY THE
CONCEPTUAL RENDERINGS INCLUDED IN THE PRESENTED MASTER PLAN;
AUTHORIZING THE ClTY MANAGER TO PURSUE LEGISLATIVE ACTION WITH
MIAMI-DADE COUNTY, THE STATE OF FLORIDA AND THE UNITED STATES
FEDERAL GOVERNMENT TO FUND THE ESTIMATED $640 MILLION PROJECT;
FURTHER AUTHORIZING THE CITY MANAGER TO PURSUE PRIVATE SECTOR
INTEREST IN PARTICIPATION IN THE PROJECT AND AUTHORIZING THE ClTY
MANAGER TO ISSUE AN RFQ TO SECURE CONSULTING EXPERTISE TO
EXPLORE PUBLIC-PRIVATE DEVELOPMENT ALTERNATIVES AND FINANCING
OPPORTUNITIES FOR THE PROJECT.
WHEREAS, as the largest existing publicly owned convention center in Miami-Dade County,
the Miami Beach Convention Center is host to such internationally recognized events as Art Basel
Miami Beach and the Miami International Boat Show, and is a vital economic engine in the South
Florida region which not only supports and brings tourists and visitors to this area, but serves as a
catalyst for the creation of jobs, not only in the convention, hotel ,and food and beverage industries,
but among ancillary businesses and industries; which, all combined, contribute toward the continued
prestige and economic viability of the South Florida region, and of the State of Florida; and
WHEREAS, in order to remain competitive in national and international markets, discussion
about enhancements to the Miami Beach Convention Center have been ongoing for almost ten years,
culminating, in 2010, with the City's creation of the Miami Beach Convention Center and Conference
Facility Expansion Steering Committee (the "Steering Committee"), and the selection of the world
renowned architectural firm, Arquitectonica, to develop a Master Plan for the proposed expansion of
the Convention Center; and
WHEREAS, Arquitectonica was directed to work within the current zoning restrictions for the
project area when developing their conceptual design and plan to accommodate the needed
improvements, enhancements and expansion of the Convention Center; and
WHEREAS, at its February 4, 201 1 meeting, the Steering Committee unanimously endorsed
Arquitectonica's proposed Master Plan and Final Report for expansion of the Miami Beach
Convention Center; and
WHEREAS, at its meeting on February 24, 201 1, The Finance Committee voted unanimously
to conceptually endorse and in concept support the renovation and expansion of the Miami Beach
Convention Center to address the needs identified (multi-use/ballroom space, more meeting rooms,
upgrades to technology, outdoor venue, etc), including the development of an adjacent Convention
Center Hotel; and
WHEREAS, the Committee further authorized the City Manager to pursue procurement
methods that would formally gauge private sector interest in joint development alternatives for the
Project, without being constrained by current zoning limitations for the site (as was the case with the
original Master Plan development) or by the current conceptual design, as well as secure any
consulting expertise required to assist with such, and pursue legislative action locally, and at the State
and federal levels, to help fund the estimated $640 million Project.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND ClTY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby support
and endorse, in concept, the project to renovate and expand the Miami Beach Convention Center, as
presented to the City's Finance and Citywide Projects Committee at its February 24, 201 1 meeting,
and including the development of an adjacent Convention Center hotel, and taking into consideration,
as an option, a re-massing andlor re-design of the project without the constraints of current zoning
restrictions for the project area or of the current conceptual designs; authorizing the City Manager to
pursue legislative action with Miami-Dade County, the State of Florida and the United States
Congress to fund the estimated $640 million project; and further authorizing the City Manager to
pursue procurement methods to explore public-private development alternatives for the Project, as
well as secure any consulting expertise required to assist with such.
PASSED and ADOPTED this day of , 2011.
ATTESTED BY:
MAYOR
ClTY CLERK
APPROVED AS TO
FORM 81 LANGUAGE
& FOf3 EXECUTION
3 ]6(('
Date
ATTACHMENT
OFFICE OF THE CITY MANAGER
LTC # 366-2009
To: Mayor Matti Herrera Bower and Members of the City Commission
From: Jorge M. Gonzalez, City Manager
Date: December 29,2009
Subiect: Convention Center Expansion and Enhancement Steering Committee
This Letter to Commission (LTC) is to advise you that I have created the Convention Center Expansion
and Enhancement Steering Committee. As you may know, I convened a "StakeholdeP group over two
years ago to provide input relating to the proposed expansion of the Miami Beach Convention Center.
This was useful as we tried to coalesce agreement on the priorities for improvements to the facility,
especially as the 2004 General Obligation Bonds (GOB) approved countywide are available for this
purpose ($55 million). This Stakeholder group has included the participation of the County (County
Manager's Office and County's Capital Improvements Office), the Convention Center Advisory Board, the
Miami Beach Visitors and Convention Authority, the Greater Miami Convention and Visitors Bureau, the
Greater Miami and the Beaches Hotel Association, the convention center managers (SMG and now
Global Spectrum) and representatives from my office and the Office of Tourism and Cultural
Development.
Following a series of meetings, the Stakeholders recommended the updating of the facility analysis
previously conducted by Convention Sports and Leisure (CSL), to include trend analysis and market
research to assist in identifying what improvements would be essential to make our facility competitive in
both the short term and the long run. As you may recall, much of the initial discussion centered on
whether the improvements funded by the GOB funds should consist only of the creation of a large multi-
purposelballroom. The updated CSL study recommended a much more expansive list of suggested
enhancements that take into consideration our competiive peer group, as well as the unique
characteristics of our destination (weather, amenities, proximity to a convention center hotel, etc.). It was
also recommended that an architectural firm be selected to develop a master plan that incorporates the
results of the updated CSL analysis and Stakeholder input. Following the issuance of RFQ 31-07/08, the
Ci Commission adopted Resolution No. 2008-26883, which authorized the City Administration to enter
into a contract with Arquitectonica to develop a campus master plan for the Miami Beach Convention
Center and surrounding area. Following the execution of the Interlocal Agreement with Miami-Dade
County for the General Obligation Bond (GOB) Funds in late fall, which funds the master plan and
expansion or enhancement of the facility, the Cii executed the agreement with Arquitectonica; they have
begun preliminary due diligence, and are ready to meet with the City and stakeholders for input.
The master plan is intended to consider possibilities to make the Miami Beach Convention Center facilii
competitive in today's convention and meeting business climate. This would involve looking at existing
and potential site amenities, physical renovations to the interior and exterior, expansion of exhibit space
(to indude necessary mu~ipurposelballroom space), technology upgrades, parking, and other aspects.
This also includes the development of the anticipated costs of these improvements, as they are expected
to exceed the $55 million available in GOB funds. When completed, the master plan will have been
through the Community Design Workshop process, and we will be provided with a Basis of Design
Report with drawings at up to 30%. In discussions with the Stakeholders and the County, it is understood
that the City and County, supported by the Stakeholders, will discuss additional costs and funding
sources once the master plan is completed.
1
11
I created the Convention Center Expansion and ~nhancement slteering Committee to provide the City
and Arquitectonica with recommendations for any enhancements and expansion of the convention
center, as well as to guide the master planning process. I have appointed the following individuals to the
Steering Committee:
Scott Berman, Principal and U.S. Industry Leader, Hospitality & Leisure, for
PricewaterhouseCoopers
Stuart Blumberg, Convention Center Advisory Board Chair and Co-Chair of the Task Force
Michael Breslow, President, Jewelry International Showcase
Marco Giberti, President, Reed Exhibitions, Latin America (Gaston Isoldi, Director of ,Business
Development - Alternate)
Jorge M. Gonzalez, City Manager and Co-Chair of the Task Force
Saul Gross, Residentlbusiness owner
Elsie Howard, Miami Beach Visitor and Convention Authority
Wendy Kallergis, Greater Miami and the Beaches Hotel Association
Alex Munoz, Assistant County Manager (Matthew Pinzer, Special Assistant - Alternate)
Tom Mobley, Global Spectrum
Cathy Rick-Joule, Southern Regional Manager, National Marine Manufacturers Association
William Talbert, Greater Miami Convention and Visitors Bureau
Robert Wennett, Resident and Member of the Lincoln Road Merchants Association
The following staff will provide support to the Steering Committee:
Hilda M. Fernandez, Assistant City Manager
Jorge Gomez, Assistant City Manager
Max Sklar, Tourism and Cultural ~evelopment Director
Bob Balsam, General Manager, Miami Beach Convention Center
Charlie Carreno, Capital Improvement Projects Director
I look forward to working with this group in developing recommendations to enhance the competitiveness
of our facility both short and long term. Please let me know if you have any questions or require
additional information.
F:\infoSALL\Max\TCDU.TC\MBCC Expansion Task Force LTC.doc
ATTACHMENT
B
Miami Beach Convention Center Master Plan
Overall Goals
1. Meet or exceed the primary space elements found in competitive comparable markets
by providing a 50,000 SF multi-use ballroom space and an additional 25,000 SF of
meeting space.
2. Identify additional elements to incorporate into the facility or it surroundings that
reflect emerging trends in the industry to amplify existing offering or attract new niche
markets. Also, identify new functions or relocate existing functions in under-utilized
areas in the facility to improve overall efficiency.
3. Provide additional unique meeting venue(s) that are functional (conveniently accessed
by attendees as well as serviceable), address a need or offer additional opportunity and
is authentic to the Greater Miami area.
4. Create a coordinated district that offers a walkable environment of restaurant, retail,
cultural and entertainment amenities to attendees and exhibitors by providing linkages
between nearby assets
5. Improve the current guest entry sequence by developing alternatives to integrate the
dual frontages.
6. Establish a new unified identity and aesthetic for the facility.
7. Develop strategies to offset the lack of a proximate headquarters hotel.
8. Assess the current and future parking and open space and marshalling needs for the
facility and develop a plan on how to meet these needs in both the short and long
terms.
9. Assess and prioritize the current infrastructure needs of the facility and develop a plan
on how these needs will be executed in the short and long terms. (Not a topic for the
charette)
ATTACHMENT
BACKGROUND:
* Opened in
* Last Expansion: 1989
- facility underwent a $92 million renovation; doubled in size
* Now: I ,000,000 square feet of flexible space:
- over 500,000 sq. ft. of exhibit space,
- over 100,000 sq. ft. of versatile pre-function space
- 70 meeting rooms comprised of 127,000 sq. ft.
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SUMMARY OF EXHIBIT SPACE DEMAND
CSL SURVEYS OF NATIONAL ORGANIZATIONS
Notes: Data represented includes all organizations surveyed requiring at least 5,000 GSF exhibit space.
Based on approximately 179 records.
Source: CSL International, 2008
16
COMPARISON OF PRIME EXHIBIT SPACE
COMPETITIVE AND COMPARABLE FACILITIES
Orlando, FL
New Orleans, LA
Los Angeles, CA
Washington, DC
Philadelphia, PA (1)
San Francisco, CA
Ft. Lauderdale, FL
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000
Square Feet
Average = 703,600
(1) Data for the Pennsylvania Convention Center includes space that is either planned or currently under development.
(2) Data for the Phoenix Convention Center includes space that is either planned or currently under development.
(3) The San Diego Convention Center is currently considering a potential future expansion.
(4) The Boston Convention & Exhibition Center is currently considering a potential future expansion.
(5) The Henry B. Gonzalez Convention Center is currently considering a potential future expansion.
Source: facility floorplans, management, and industry publications, 2008
COMPAR SON OF BALLROOM SPACE
COMPET VE AND COMPARABLE FAC
H Contiguous Space Total Space
Philadelphia, PA (2)
New ~rleans, LA
Orlando, FL
Atlanta, GA
Dallas, TX
Anaheim, CA
Tampa, FL
Charlotte, NC
I Miami Beach, FL 11 o
Contiguous Average = 41,835
Contiguous Median = 38,100
Total Average = 64,150
Total Median = 58,700
Los Angeles, CA I
I I I I I
Square Feet
Note: The average and median calculations include only facilities offering ballroom space.
(1) Data for the Phoenix Convention Center includes space that is either planned or currently under development.
(2) Data for the Pennsylvania Convention Center includes space that is either planned or currently under development.
(3) The Henry B. Gonzalez Convention Center is currently considering a potential future expansion.
(4) The San Diego Convention Center is currently considering a potential future expansion.
(5) The Boston Convention & Exhibition Center is currently considering a potential future expansion.
Note: The Miami Beach Convention Center does not offer ballroom space.
Source: facility floorplans, management, and industry publications, 2008
COMPAR SON OF ROOMS AT HEADQUARTERS HOTELS
COMPET VE AND COMPARABLE MARKETS
Orlando, FL
Anaheim, CA (1)
San Diego, CA (2)
San Antonio, TX
New Orleans, LA
San Francisco, CA (3)
Phoenix, AZ
Ft Lauderdale, FL (4)
Philadelphia, PA
Houston, TX
Los Angeles, CA
Denver, CO
Atlanta, GA
Boston, MA
Charlotte, NC
Tampa, FL
Dallas, TX
Average = 1,740
Median = 1,460
Hotel Rooms
Note: The average and median calculations include only markets offering headquarters hotels.
(1)Anaheim has two hotels adjacent to the Center, the Anaheim Hilton with 1,573 rooms and the Anaheim Marriott with 1,031 rooms.
(2) San Diego currently has one attached hotel, the San Diego Marriott Hotel & Marina with 1,362 rooms and one under construction set
to open in Fall 2008, the Hilton San Diego Convention Center with 1,190 rooms.
(3)San Francisco has two hotels adjacent to the Center, The W Hotel of San Francisco with 499 rooms and the San Francisco Marriott with 1,499 rooms.
(4) Fort Lauderdale includes a proposed 1,000 room headquarters Hilton.
(5): Loews, with 790guest rooms, is located approximately six blocks from the MBCC and often serves as the headquarters hotel.
Note: Dallas, Miami Beach and Washington, D.C. do not currently have headquarters hotels. However, planning is underway for a headquarters hotel to
be constructed in Washington, D.C.
Source: Convention and Visitors Bureau's, 2008
I
HOTEL ROOMS W LE OF THE
BEACH CONVENT ON CENTER
- 0 hotels with more than 1,000 r
- 2 hotels with 500 to 999 rooms
- 15 hotels with 100 to 499 room
1 - Loews Miami Beach Hotel (790 rooms)
2 - Royal Palm Resort (552)
3 -The Shore Club (379)
4 - Ritz-Carlton (375)
5 - Gansevoort South Hotel (334)
6 - Doubletree Surcomber Hotel (282)
7 - Shelborne Beach Resort (200)
8 - Delano (194)
9 - Catalina Hotel & Beach Club (192)
10 - Days Inn - South Beach (172)
11 -The National Hotel (151)
12 -The Setai Resort and Residences (131)
13 - Marseilles Hotel (119)
14 - Haddon Hall Hotel (116)
15 -South Seas Hotel (111)
16 -The Raleigh Hotel (104)
17 -Albion Hotel (100)
Page 20
HOTEL ROOMS W F THE
GONZALEZ CONVENT ANTONIO
Page 2"1
:han 1,000 rooms
999 rooms
:o 499 rooms
1 22- Drury Inn & Suites Riverwalk (150) I
HOTEL ROOMS W LE OF -l-HE
COLORADO DENVE CONVENT ON CENTER
Page 23
- 2 hotels with more than 1,000 rooms
- 2 hotels with 500 to 999 rooms
- 12 hotels with 100 to 499 rooms
1 - Sheraton Denver Hotel (1,225 rooms)
2 - Hyatt Regency Denver at CCC (1,100)
3 - Denver Marriott City Center (615)
4 -Grand Hyatt Denver (512)
5 - Westin Hotel Tabor Center (430)
6 - Crowne Plaza (364)
7 -The Curtis (336)
8 - Magnolia Hotel (246)
9 - Brown Palace Hotel & Spa (241)
10- Comfort Inn Downtown (231)
11 - Hilton Garden Inn (221)
12 - Ritz-Carlton Denver (202)
13 - Hotel Monaco (189)
14 - Courtyard by Marriott (177)
15 - Hampton Inn & Suites (148)
16 - Hotel Teatro (110)
HOTEL ROOMS W N 1/2 MILE OF THE
PENNSYLVAN LADELPH CONVENT ON CENTER
- 1 hotel with more than 1,000
- 3 hotels with 500 to 999 roon
- 13 hotels with 100 to 499 roo
rooms 3
1 - Philadelphia Marriott (1,332 rooms)
2 - Sheraton City Center (758)
3 - Loews Philadelphia Hotel (581)
4 - Courtyard by Marriott (500)
5 - Crowne Plaza Center City (445)
6 - Doubletree Hotel Philadelphia (434)
7 - Four Seasons Hotel (364)
8 -The Ritz-Carlton Philadelphia (299)
9 -The Westin Philadelphia (290)
10 - Embassy Suites Center City (288)
11 - Hilton Garden Inn City Center (279)
12 - Residence Inn by Marriott (269)
13 - Hampton Inn Philadelphia (250)
14 - W Hotel (Opening 2009) (250)
15 - Park Hyatt Philadelphia (172)
16 - Holiday Inn Express Midtown (168)
17 - Hotel Windsor (106)
Page
STEER NG COMM
Forma ized stakeho der process
Expanded composition
Existina Members (Stakeholder Group)
* City of Miami Beach, City Manager: Jorge M. Gonzaiez (Co-Chair of Committee)
* Convention Center Advisory Board: Stuart Blumberg (Co-Chair of Committee)
Greater Miami and the Beaches Hotel Association: Wendy Kallergis
Greater Miami Convention and Visitors Bureau : William Talbert
* Global Spectrum: Tom Mobley
* Miami Beach Visitor and Convention Authority: Elsie Howard
Miami-Dade County: Johnny Martinez, Director of Capital Improvements
New Members
PricewaterhouseCoopers:
Jewelry lnternational*~howcase:
Reed Exhibitions, Latin America:
National Marine Manufacturers Association:
Lincoln Road Merchants Association:
ResidentlBusiness Owner:
Scott Berman, Principal, Hospitality & Leisure
Michael Breslow, President
Marco Giberti, President
Cathy Rick-Joule, Southern Regional Manager
Robert Wennett
Saul Gross
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RECT SPEND NG BY NDUSTw:
EXPANS TH HOTEL SCENAR
Other
$23,309,000
Hotel
$82,410,000
41%
Restaurant
$53,085,000
27%
Source: CSL International
TAXES GENERAI-TED BY TAX TYPE:
EXPANS TH HOTEL SCENAR
CountvTaxes
Source: CSL International
THIS PAGE INTENTIONALLY LEFT BLANK
COMMISSION ITEM SUMMARY
Condensed Title:
I A Resolution terminating the Purchase and Sale Agreement Dated April 14, 2010 between the City ( I and American Riviera ~eal Estate, LLC., for the real broperty located at 340 23'(' Street, Miami Beach. 1
Key Intended Outcome Supported:
Improve Parking Availability
Supporting Data (Surveys, Environmental Scan, etc.): Only 21% of residents and 28% of
businesses rate the availability of parking in Miami Beach as being the right amount.
Issue:
Shall the Mayor and City Commission terminate the purchase and sale agreement to acquire 340 23m
Street, for the purpose of constructing a municipal garage in the Collins Park Neighborhood?
Item SummarylRecommendation: I This Purchase and Sale Agreement was approved by the Mayor and City Commission on I
April 18, 2010, and the anticipated closing was set to occur on July 1, 201 0. Through no fault
of the City, the closing has been continuously delayed, and issues have arisen that the
Administration was unaware of at the time the Agreement was approved, including the
inability of Seller to provide clear title and the pending Everbank foreclosure action.
The Administration has been patient and reasonable with the Seller throughout this process.
The City agreed to pay a significant premium for this Property in order to receive a clear title
with a fast closing. Due to the delays associated with this transaction the City was not able to
include this project in the sale of revenue bonds approved by the Mayor and Commission for
parking projects, and more importantly, the development of parking for this neighborhood is
again delayed.
Due to the complications associated with this transaction, the Administration recommends
that the Mayor and City Commission approve the Resolution; terminate the Purchase and
Sale Agreement between the City of Miami Beach and American Riviera Real Estate, LLC;
and authorize the City Manager and City Attorney to take any and all such actions, as
required, in order to effectuate this termination.
Advisory Board Recommendation: I Finance and Citywide Project Committee; March 25, 2010 I
OBPl Total
Financial Impact Summary:
Financial Information: Funds previously appropriated from:
City Clerk's Office Legislative Tracking: I Kevin Crowder, City Manager's Office
Account Amount Source of
Funds: 1
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39, www.rniarnibeachfl.gov
MEMO # COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: March 9, 201 1
SUBJECT: A RESOLUTION OF THE MAY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, TERMINATING THE AGREEMENT FOR
SALE AND PURCHASE OF REAL PROPERTY, DATED APRIL 14, 2010,
BETWEEN THE ClTY (BUYER) AND AMERICAN RlVlERA REAL ESTATE
COMPANY (SELLER), FOR THE REAL PROPERTY LOCATED AT 340 23RD
STREET, MIAMI BEACH, FLORIDA; AND FURTHER AUTHORIZING THE
ClTY MANAGER AND ClTY ATTORNEY TO TAKE ANY AND ALL
ACTION(S), AS REQUIRED, IN ORDER TO EFFECTUATE SAID
TERMINATION.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On April 14, 2010, the Mayor and City Commission approved Resolution No. 2010-
27377, approving an Agreement for Sale and Purchase of Real Property (the
Agreement) between the City (Buyer)) and American Riviera Real Estate Company
(Seller), for the real property located at 340 23rd Street, Miami Beach, Florida (the
Property), in the amount of $4,975,000 (Purchase Price) for the purpose of constructing
a public parking facility. The Purchase Price included a considerable premium based
upon the expectation that there would be a quick closing and seller would deliver
marketable and insurable title to the Property.
The Agreement was executed on April 14, 2010. Pursuant to the terms, the City had a
thirty (30) day lnspection Period to determine whether to proceed with the purchase. If
the City elected to proceed, the Closing was to occur ten (10) days after expiration of the
lnspection Period, or May 24, 2010.
Unfortunately, Seller did not have good, marketable and insurable title to the Property,
and the original title insurance commitment reflected numerous title problems. The City
sent a timely written objection to those problems, thereby allowing the Seller to delay the
Closing during a 90 day title cure period. Seller was unable to cure title during the title
cure period.
During this time, the City also conducted a Phase 2 environmental assessment on the
Property, which identified environmental problems for which (if closing occurs) the City
must pay remediation costs estimated at $225,000. Notwithstanding, the Agreement
Commission Memorandum
March 9, 201 I
American Riviera Real Estate
Page 2
allows the City to terminate the Agreement if the City determines, in its sole opinion, that
the remediation costs are unusually expensive.
On August 2, 2010, City and Seller entered into a First Amendment to the Agreement
pursuant to which Seller was granted an extension of the title cure period until August
20, 2010 (Extended Title Cure Date), and the Closing Date was extended to September
1, 2010. The First Amendment further provided that if the title objections were not cured
by August 20, 2010, the City could elect either to (i) waive the title objections and
proceed to Closing, or (ii) terminate the Agreement. The First Amendment also allowed
the City the continued right to terminate the Agreement, at any time prior to Closing, in
the event that the City determined, in its sole opinion, that the environmental remediation
costs on the Property were unusually expensive.
Seller again failed to cure the title problems by the Extended Title Cure Date (August 20,
201 1). At that time, the Administration evaluated the various options that were available
to the City, including termination of the Agreement, but, in good faith to Seller, decided
not to pursue that option at that time. Notwithstanding the City's decision not to pursue
termination of the Agreement at that time, it consistently advised Seller, in writing, that its
election was in no way to be construed as a waiver of the City's right to terminate the
Agreement, or of any other right or remedy available to the City under the Agreement, as
a result of Seller's failure to perform.
The City then proceeded to prepare a Second Amendment to the Agreement. In
consideration for City's agreement to keep the transaction alive, and for a further
extension of the Title Cure Period and Closing Date, the terms of the Second
Amendment provided for a $250,000 Purchase Price reduction (approximately 5%). The
City's reduction of the Purchase Price is reasonable considering that, pursuant to the
initial negotiations (and as an incentive for the City to enter into the Agreement with
Seller), the City agreed to pay a significant premium for this Property in order to receive
clear title with a quick Closing, which did not occur.
The Second Amendment was transmitted to Seller on August 25, 2010, with a cover e-
mail stating that the City continued to reserve any and all rights under the Agreement,
including its right to terminate, if the Second Amendment was not signed and returned
promptly.
The Seller did not want to reduce the Purchase Price and therefore refused to execute
the Second Amendment. A revised Second Amendment, which eliminated the Purchase
Price reduction but retained the provision that extended the title cure period to a
specified outside date (September 10, 2010), and the Closing Date to September 14,
2010, was transmitted to Seller on September 2, 2010, but Seller still refused to sign the
revised Second Amendment. The reason for Seller's refusal to sign this time was that a
Second Amendment would not be necessary, since the Closing would occur by early
September 2010. The Closing did not occur at that time, and the Second Amendment
remained unexecuted by the Seller.
At this time, Seller has eliminated many of the title problems. The remaining problems
relate to the fact that certain parties in the chain of title have died (and, in turn, some of
their heirs have died). Accordingly, a quiet title suit was necessary to eliminate any
claims they might have to the Property. The title company has approved the form of the
Commission Memorandum
March 9, 201 1
American Riviera Real Estate
Page 3
quiet title suit that names as defendants four individuals plus various "unknown heirs".
All of the four individuals have been served with the complaint to quiet title. The
unknown heirs were served by publication. As of this date, no answers have been filed
by any of the defendants. Seller has represented to the City that it expects to obtain a
final summary judgment by mid-March and expects to be in a position to close by the
end of March, after all appeal periods have expired.
In January 201 1, the Administration was informed by attorneys representing Everbank
that Seller's leasehold interest in the Property was in foreclosure by Everbank. Although
the Purchase Price being paid by the City is sufficient for the Seller to pay off the
Everbank mortgage, the Seller is contesting the foreclosure and, accordingly, is unwilling
to pay the full amount demanded by Everbank to obtain a Satisfaction or Release of
Mortgage; further delaying closing on the Property.
On February 15, 201 I, the Administration met with Seller to discuss the status of the title
issues; the pending foreclosure action; and to finalize a Second Amendment. Following
the meeting, on February 16, 2011, the City sent the Seller a revised Second
Amendment (which included the terms discussed at the meeting), and requested that
Seller sign and return the document by close of business Friday, February 18, 201 1 (for
timely placement on the March 9" City Commission Meeting agenda).
The terms of the revised Second Amendment included:
a Purchase Price reduction of $250,000;
a further extension of the Title Cure Period to March 22, 201 1 ;
Closing Date to occur on March 31, 201 1 ;
a provision requiring the Everbank mortgage to be satisfied or released at
Closing; and
a general release whether the Closing occurs or not.
Seller executed the Second Amendment, but only after making significant changes,
which are not acceptable to the Administration and City Attorney's Office; including:
revising the Purchase Price reduction to only $75,000, and removing the general release
in case the Closing does not occur.
On February 23, 201 1, the Administration informed Seller that its changes to the Second
Amendment were unacceptable, but that it would still be willing to proceed with placing
the Amendment on the March 9" City Commission Meeting agenda, as originally drafted
and proposed by the City on February 16, except for the City's concession to a Purchase
Price reduction to $200,000 (as opposed to the originally proposed $250,000). On
February 25, 201 1, Seller informed the City that he would only agree to a final Purchase
Price reduction of $100,000. Notwithstanding, the City's other concerns have still not
been addressed - i.e. the Seller still has not agreed to provide a general release if
Closing does not occur; has not committed to obtain a satisfaction or release of the
Everbank mortgage; and the Seller's proposed Purchase Price reduction came with
conditions attached to it. In summary, the Second Amendment, as revised by Seller, is
unacceptable to the City Administration and City Attorney.
On March 2, 2011, the Administration provided the Seller with another opportunity to
execute the Second Amendment, requesting that Seller execute the Amendment prior to
close of business on March 4, 201 1. The Administration informed the Seller that failure
Commission Memorandum
March 9, 201 1
American Riviera Real Estate
Page 4
to execute the Second Amendment would result in the Agreement being placed on the
March 9 City Commission Agenda with a recommendation to terminate.
On March 5, 2011, the City received an e-mail from Seller's counsel stating that,
notwithstanding its refusal to execute the Second Amendment (as presented by the
City): (1) it is still proceeding to resolve the suit to quiet title, and (2) is pursuing a
settlement with Everbank. Seller has proposed the following alternative: No Purchase
Price reduction, but a Closing Date of March 31, 201 1. (Note: It is important to note that,
in previous discussions, the Seller had agreed to a Purchase Price reduction of
$1 00,000).
ALTERNATIVES
The transaction could still close with the following terms: (1) a Purchase Price reduction
of $100,000 (as previously proffered by Seller); (2) automatic termination of the
Agreement if Closing does not occur on March 31, 2011; and (3) a general release
whether or not Closing occurs.
If the City Commission terminates the Agreement, the following alternatives could be
pursued:
1. The Administration and City Commission have previously discussed other
alternatives to provide parking in the area, including alternatives that do not require a
joint venture or land assemblage, and potential discussion of a joint venture project
with the Gansevoort Hotel. The Administration will review these and other
possibilities and return to the Finance and Citywide Projects Committee for further
direction.
2. The City owns two surface parking lots along 23rd Street on either side of Liberty
Avenue. These two lots are behind the Miami City Ballet building and the Regional
Library building, respectively. It is plausible to construct a traditional garage on these
two lots, provided the City is willing to vacate Liberty Avenue, since the garage would
need to cross this street. The City issued an RFQ for an architect for this concept
and Arquitectonica was selected. However, this process was stopped before an
agreement for services was brought to the City Commission in order to enter into
discussions with ARRE. An alternative to this concept is to construct robotic parking
garage(s) on one or both of the two surface lots.
CONCLUSION
This Agreement was approved by the Mayor and City Commission on April 14, 2010,
and the anticipated Closing was set to occur on May 24, 2010. Through no fault of the
City, the Closing has been continuously delayed, and issues have arisen that the
Administration was unaware of at the time the Agreement was approved; including the
inability of Seller to provide clear title and the pending Everbank foreclosure action.
The Administration has been patient and reasonable with the Seller throughout this
process and has continuously proceeded in good faith. Despite the fact that, in entering
into this Agreement, and in reliance on Seller's statements during the negotiations, the
City agreed to pay a significant premium for this Property in order to receive clear title
Commission Memorandum
March 9, 201 1
American Riviera Real Estate
Page 5
with a fast closing. Due to the delays associated with this transaction, the City was not
able to include this project in the sale of revenue bonds approved by the Mayor and
Commission for parking projects and, more importantly, the development of parking for
the Collins Park neighborhood is again delayed.
As previously stated, this proposed transaction could still close with the following terms:
(1) a Purchase Price reduction of $100,000 (as previously proffered by Seller); (2)
automatic termination of the Agreement if Closing does not occur on March 31, 201 1;
and (3) a general release whether or not Closing occurs.
If these terms are unacceptable to the Seller, due to the complications associated with
this transaction, and the numerous delays (through no fault of the City) that have
prevented, and continue to prevent, the parties from Closing, the Administration would
recommend that the Mayor and City Commission approve the Resolution; terminate the
Agreement; and authorize the City Manager and City Attorney to take any and all such
actions, as required, in order to effectuate such termination.
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND ClTY
COMMISSION OF THE ClTY OF MlAMl BEACH,
FLORIDA, TERMINATING THE AGREEMENT FOR
SALE AND PURCHASE OF REAL PROPERTY, DATED
APRIL 14,2010, BETWEEN THE ClTY AND AMERICAN
RlVlERA REAL ESTATE COMPANY (SELLER), FOR
THE REAL PROPERTY LOCATED AT 340 23RD
STREET, MlAMl BEACH, FLORIDA; AND FURTHER
AUTHORIZING THE ClTY MANAGER AND CITY
ATTORNEY TO TAKE ANY AND ALL ACTION(S), AS
REQUIRED, IN ORDER TO EFFECTUATE SAID
TERMINATION.
WHEREAS, on April 14, 2010, the Mayor and City Commission approved
Resolution No. 2010-27377, approving an Agreement for Sale and Purchase of Real
Property (the Agreement) between the City (Buyer) and American Riviera Real Estate
Company (Seller), for the real property located at 340 23rd Street, Miami Beach, Florida
(the Property), in the amount of $4,975,000 (Purchase Price) for the purpose of
constructing a public parking facility; and
WHEREAS, the City had a thirty (30) day lnspection Period to determine whether
to proceed with the purchase and, if the City elected to proceed, the Closing was to
occur ten (1 0) days after expiration of the Inspection Period, or May 24, 201 0; and
WHEREAS, the City conducted a Phase 2 environmental assessment on the
Property, which identified environmental problems for which the City must pay
remediation costs estimated at $225,000 if the City purchases the Property; and
WHEREAS, on August 2, 2010, City and Seller entered into a First Amendment
to the Agreement pursuant to which Seller was granted an extension of the title cure
period until August 20, 2010 (Extended Title Cure Date), and the Closing Date was
extended to September I, 201 0; and
WHEREAS, the First Amendment further provided that if the title objections were
not cured by August 20, 2010, the City could elect either to (i) waive the title objections
and proceed to Closing, or (ii) terminate the Agreement; and
WHEREAS, Seller again failed to cure the title problems by the Extended Title
Cure Date (August 20, 201 1); however, City decided not to pursue termination of the
Agreement at that time; and
WHEREAS, a quiet title suit was necessary to eliminate any claims that might be
made on the Property, and the title company approved the form of the quiet title suit; and
WHEREAS, Seller has represented to the City that it expects to obtain a final
summary judgment by mid-March, and expects to be in a position to close by the end of
March, after all appeal periods have expired; and
WHEREAS, City prepared a Second Amendment to the Agreement, further
extending of the Title Cure Period and Closing Date, and providing for a $250,000
Purchase Price reduction; and
WHEREAS, the Second Amendment was transmitted to Seller on August 25,
2010, with a cover e-mail stating that the City continued to reserve any and all rights
under the Agreement, including its right to terminate, if the Second Amendment was not
signed and returned promptly; and
WHEREAS, Seller refused to execute the Second Amendment as submitted by
City; and
WHEREAS, a revised Second Amendment, which eliminated the Purchase Price
reduction but retained the provision that extended the title cure period to a specified
outside date (September 10, 2010), and the Closing Date to September 14, 2010, was
transmitted to Seller on September 2, 2010, but Seller still refused to sign the revised
Second Amendment; and
WHEREAS, a quiet title suit was necessary to eliminate any claims that might be
made on the Property, and the title company approved the form of the quiet title suit; and
WHEREAS, Seller has represented to the City that it expects to obtain a final
summary judgment by mid-March, and expects to be in a position to close by the end of
March, after all appeal periods have expired; and
WHEREAS, in January 201 1, the Administration was informed by attorneys
representing Everbank that Seller's leasehold interest in the Property was in foreclosure
by Everbank; and
WHEREAS, although the Purchase Price being paid by the City is sufficient for
the Seller to pay off the Everbank mortgage, the Seller is contesting the foreclosure and,
accordingly, is unwilling to pay the full amount demanded by Everbank to obtain a
Satisfaction or Release of Mortgage; further delaying closing on the Property; and
WHEREAS, on February 15, 201 1, the Administration met with Seller to discuss
the status of the title issues; the pending foreclosure action; and to finalize a Second
Amendment; and
WHEREAS, on February 16, 2011, the City sent the Seller a revised Second
Amendment (which included the terms discussed at the meeting), and requested that
Seller sign and return the document by close of business Friday, February 18, 201 1; and
WHEREAS, the terms of the revised Second Amendment included: a Purchase
Price reduction of $250,000; a further extension of the Title Cure Period to March 22,
2011; Closing Date to occur on March 31, 2011; a provision requiring the Everbank
mortgage to be satisfied or released at Closing; and a general release (whether the
Closing occurs or not); and
WHEREAS, Seller executed the Second Amendment, but only after making
significant changes, which included: revising the Purchase Price reduction to only
$75,000, and removing the general release in case the Closing does not occur; and
WHEREAS, on February 23, 201 1, the Administration informed Seller that its
changes to the Second Amendment were unacceptable, but that it would still be willing
to proceed with placing the Amendment on the March gth City Commission Meeting
agenda, as originally drafted and proposed by the City on February 16th, except for the
City's concession to a Purchase Price reduction to $200,000; and
WHEREAS, on February 25, 201 1, Seller informed the City that he would only
agree to a final Purchase Price reduction of $100,000; and
WHEREAS, on March 2, 2011, the Administration provided the Seller with
another opportunity to execute the Second Amendment, requesting that Seller execute
the Amendment prior to close of business on March 4, 201 1; and
WHEREAS, on March 5, 201 1, the City received an e-mail from Seller's counsel
stating that, notwithstanding its refusal to execute the Second Amendment (as presented
by the City): (1) it is still proceeding to resolve the suit to quiet title, and (2) is pursuing a
settlement with Everbank.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby terminate the Agreement for Sale and Purchase of Real Property,
Dated April 14, 2010, between the City and American Riviera Real Estate Company, for
the Real Property located at 340 23rd Street, Miami Beach, Florida; and further authorize
the City Manager and City Attorney to take any and all action(s), as required, in order to
effectuate said termination.
PASSED AND ADOPTED this 9th day of March, 201 1.
ATTEST:
Robert H. Parcher, City Clerk Matti Herrera Bower, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND ClTY COMMISSION OF
THE ClTY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
WAIVER OF THE $850.00 COLONY THEATER RENTAL FEE
FOR THE ABILITY EXPLOSION EVENT TO BE HELD ON
OCTOBER 20,201 1.
WHEREAS, the Ability Explosion is a weeklong series of special events held in historic
Miami Beach and created for the enjoyment of the entire community; and
WHEREAS, the mission of Ability Explosion is to celebrate the abilities of people living
with disabilities, to encourage their acceptance by the entire community, and to promote
innovations that will improve their lives; and
WHEREAS, in order to facilitate the admirable efforts of the Ability Explosion which
brings residents and visitors to Miami Beach to enjoy a variety of cultural and athletic events,
the Mayor and City Commission of the City of Miami Beach hereby authorizes the waiver of
$850.00 for the rental fee for the Colony Theater on October 20, 201 1 for Ability Explosion.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND ClTY
COMMISSION OF THE ClTY OF MIAMI BEACH, FLORIDA, that the $850.00 rental fee for the
Colony Theater is hereby authorized to be waived for the Ability Explosion to be held October
20, 201 1.
PASSED and ADOPTED this day of March, 201 1
ATTEST:
ROBERT PARCHER, ClTY CLERK
F:\ATTO\TURN\RESOS\$850.00 Colony Theater Rental Fee.docx
MATTI HERRERA BOWER
MAYOR
APPROVED AS TO
-FORM & LANGUAGE
1 Agenda Item E
r Date 3-4-//
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