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C7N-Execute Declaration Traffic Circle Areas Improvements - 29th StreetCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And The City Commission Of The City Of Miami Beach, Florida, Approving And Authorizing The Mayor And City Clerk To Execute The Declaration Regarding Improvements And Maintenance Of Traffic Circle Areas Within The Right-Of-Way And Public Beach Walk And Exchange Of Easements Related Thereto, With Seville Ac~uisition, LLC, Owner Of The Marriott Seville, For Improvements To And The Maintenance Of The 29t Street Streetend And Traffic Circle, And For The Construction Of A Portion Of The Beachwalk. Intended Outcome Su Data (Surveys, Environmental Scan, etc.): N/A Issue: j Shall the Mayor and the City Commission approve the Resolution? Item Summary/Recommendation: Seville Acquisitions, LLC (Owner) has received development approval for the construction of a hotel and condominium at 2901 Collins Avenue. This approval was granted after five Historic Preservation Board (HPB) meetings and one Board of Adjustment meeting. The June 14, 2011 HPB approval provides for reconfiguring and improving the 29th Street end, including the traffic circle. The City is requiring a maintenance agreement that obliges the Owner to maintain the street end and traffic circle improvements as the City does not have the resources to properly maintain these enhancements. The Owner will grant the City an easement for public ingress and egress over a portion of the propert~ and will construct a public Beachwalk along the rear of the Owner's property from approximately 29 Street to 30th Street, replacing the existing boardwalk. Staff has reviewed the appropriateness of the proposal pursuant to the criteria established under Section 82-38 of the City Code for the proposed sale or lease of City property, and found the criteria are satisfied. The Land Use and Development Committee meeting, at its July 25, 2012 meeting, recommended approval of this proposed agreement by the Commission. THE ADMINSTRATION RECOMMENDS APPROVING THE RESOLUTION. Financial Information: Source of Funds: 1 Amount Account pproved OBPI L-~T~o~t=ai~L---~------~--------------------~--------~ Financial Impact Summary: (9 MIAMI BEACH 281 City Man KGB AGENDA iTeM DATE MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Comm-sian FROM: Kathie G. Brooks, Interim City Manager DATE: September 12, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE DECLARATION REGARDING IMPROVEMENTS AND MAINTENANCE OF TRAFFIC CIRCLE AREAS WITHIN THE RIGHT-OF-WAY AND PUBLIC BEACH WALK AND EXCHANGE OF EASEMENTS RELATED THERETO, WITH SEVILLE ACQUISITION, LLC, OWNER OF THE MARRIOTT SEVILLE, FOR IMPROVEMENTS· TO AND THE MAINTENANCE OF THE 29TH STREET STREETEND AND TRAFFIC CIRCLE, AND FOR THE CONSTRUCTION OF A PORTION OF THE BEACHWALK. ADMINISTRATION RECOMMENDATION The Administration recommends adopting the Resolution. BACKGROUND Seville Acquisitions, LLC (Owner) has received development approval for the construction of a hotel and condominium at 2901 Collins Avenue. This approval was granted after five Historic Preservation Board (HPB) meetings and one Board of Adjustment (BOA) meeting. • On May 10, 2011, the application for the development was approved by the HPB with the exception of the landscape plan and reconfiguration of the 29th Street end and the proposed renovations of the interior of the public spaces. • On June 14, 2011, the HPB approved there-configuration of 29th Street. • On September 9, 2011, the BOA approved variances reducing the setback, view corridor, and rear yard landscaping requirements. • On September 13, 2011, the HPB approved modifications to the demolition plans and the landscape plan. • On October 11, 2011 and December 13, 2011, the HPB approved the design of the hotel's public interior spaces. Notifications of these meetings were sent to properties within 375 feet of the development including Triton Towers. Three residents of the Triton Towers spoke at the May 11, 2011 HPB meeting. Their concerns were related to traffic and noise. The Owner and City staff worked with Triton Towers to ensure that the final product will address their concerns. ANALYSIS The June 14, 2011 HPB approval provides for reconfiguring and improving the 29th Street end, 282 City Commission Memorandum -Agreement with Marriott Seville September 12, 2012 Page 2 of 3 including the traffic circle. The City is agreeable to this request but is requiring a maintenance agreement (Attachment) that obliges the Owner to maintain the street end and traffic circle improvements as the City does not have the resources to properly maintain these enhancements. The City will require the Owner to replace pavers that are broken or cracked and maintain the area in a manner to prevent tripping hazards. The Owner will also need to maintain the proposed landscaping in a substantially similar manner to the landscaping which is initially placed. The Owner has proposed an exchange of easements with the City. The Owner will grant the City an easement for public ingress and egress over a portion of the property and will construct a public Beachwalk along the rear of the Owner's property from approximately 29th Street to 30th Street, replacing the existing boardwalk. This includes design, permitting, and construction. The Owner has proposed that the City grant it an easement over the improved area for maintenance, repair, and replacement, as necessary. The maintenance agreement and the two easement agreements are being negotiated now and will be taken to the Commission for approval if approved in committee. As an exchange of easements is proposed, staff has not required an appraisal of the easement that the City will provide to the Owner. Planning and Public Works staff has reviewed the appropriateness of the proposal pursuant to the criteria established under Section 82-38 of the City Code for the proposed sale or lease of City property. 1) Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city's comprehensive plan. Satisfied. Granting the easement will provide for the maintenance of an enhanced street end with brick pavers and landscaping. 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 needed, the purchaser/lessee shall be responsible for obtaining and paying for a traffic impact analysis from a reputable traffic engineer. Satisfied. There should be no negative impact to City infrastructure or to traffic. The project is designed to improve traffic flow and circulation related to the hotel project. 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. Satisfied. The proposal is associated with an important hotel development. This portion of the Collins Avenue corridor has not developed as rapidly as areas of the City further south, and the proposed new hotel developments in this corridor are generally seen as 283 City Commission Memorandum -Agreement with Marriott Seville September 12, 2012 Page 3of3 positive for the city's economic and tourism development. 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. Satisfied. The proposed enhancements should greatly improve the aesthetics of the street end, functioning as a park-like setting with robust landscaping. The area will be open to the public. 5) The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Satisfied. There should not be any adverse impacts to adjacent properties. The Owner and staff have worked with residents of the adjacent Triton Towers condominium building to ensure that the final product is acceptable to them. 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. Satisfied. Staff has no other issues it deems appropriate to analyze for this proposal. The analysis above shows that the criteria for the proposed sale or lease of City property are satisfied, per Miami Beach City Code Sections 82-38. The Land Use and Development Committee meeting, at its July 25, 2012 meeting, recommended approval of this proposed agreement by the Commission. CONCLUSION The Administration recommends that the Mayor and City Commission authorize the Mayor and City Clerk to execute the declaration regarding improvements and maintenance of traffic circle areas within the right-of-way and public beach walk and exchange of easements related hereto, with Seville Acquisition, LLC, owner of the Marriott Seville, for improvements to and the maintenance of the 29th Street streetend and traffic circle, and for the construction of a portion of the beachwalk. Attachment: Draft Agreement JGG//FHB/JJF/RWS T:IAGENDA\2012\9-12-12\Revocable Permits and Easements\Marriott Seville Agreement-MEMO.docx 284 RESOLUTION NO.---- A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A DECLARATION REGARDING IMPROVEMENTS AND MAINTENANCE OF TRAFFIC CIRCLE AREAS WITHIN THE RIGHT-OF-WAY AND PUBLIC BEACH WALK AND EXCHANGE OF EASEMENTS RELATED THERETO, WITH SEVILLE ACQUISITION, LLC, OWNER OF THE MARRIOTT SEVILLE, FOR IMPROVEMENTS TO AND THE MAINTENANCE OF THE 29TH STREET STREETEND AND TRAFFIC CIRCLE, AND FOR THE CONSTRUCTION OF A PORTION OF THE BEACHWALK. WHEREAS, Seville Acquisition, LLC ("Owner") is the owner of the hotel property located at 2901 Collins Avenue ("Property"); and WHEREAS, the Owner has received development approval for the construction of a hotel and condominium at the Property, after five Historic Preservation Board ("HPB") meetings and one Board of Adjustment ("BOA") meeting; and WHEREAS, the Historic Preservation Board, at its June 14, 2011 meeting, approved the reconfiguration and improvement of the 29th Street streetend, including the traffic circle; and WHEREAS, the City requires a maintenance agreement that obliges the Owner to maintain the street end and traffic circle improvements as the City does not have the resources to properly maintain these enhancements; and WHEREAS, the Owner will grant the City an easement for public ingress and egress over a portion of the pro~erty and will construct a Public Beachwalk along the rear of the Owner's property from approximately 29t Street to 30th Street, replacing the existing boardwalk; and WHEREAS, Staff has reviewed the appropriateness of the proposal pursuant to the criteria established under Section 82-38 of the City Code for the proposed sale or lease of City property and found that the criteria are satisfied; and WHEREAS, the Land Use and Development Committee, at its July 25, 2012 meeting, recommended approval of this proposed Declaration by the Commission. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission, hereby approve and authorize the Mayor and City Clerk to execute declaration regarding improvements and maintenance of traffic circle areas within the right-of-way and public beach walk and exchange of easements related thereto, with Seville Acquisition, LLC, Owner of the Marriott Seville, subject to such further modifications as the City Attorney and the City Manager determine are in the best interests of the City, for improvements to and the maintenance of the 29th Street streetend and traffic circle, for the construction of a portion of the beachwalk, and for exchange of easements related thereto. 285 PASSED and ADOPTED this 1ih day of September, 2012. ATTEST: Matti Herrera Bower, Mayor Rafael Granado, City Clerk Date T:\AGENDA\2012\9-12-12\Revocable Permits and Easements\Marriott Seville Agreement-RESO rev.docx 286 This instrument was prepared by: Name: Michael}. Marrero, Esq. Address: Bercow Radell & Fernandez, P.A. 200 S. Biscayne Blvd., Suite 850 Miami, FL 33131 Clerk) THIS DECLARATION REGARDING IMPROVEMENTS AND MAINTENANCE OF TRAFFIC CIRCLE AREAS WITHIN THE RIGHT-OF-WAY AND PUBLIC BEACHWALK (the "Declaration") is made this __ day of ---' 2012, by Seville Acquisition, LLC, a Delaware limited liability company (the "Owner") in favor of the City of Miami Beach, Florida, a municipality of the State of Florida (the "City"). WITNESSETH: WHEREAS, the Owner holds fee-simple title to the real property (the "Master Parcel") described on the attached Exhibit A ; and WHEREAS, the Owner has obtained several development approvals and is currently seeking building permits from the City of Miami Beach for the restoration and redevelopment of the Master Parcel to a hotel and residential condominium project (the "Project") and, in connection with the construction of the Project, Owner proposed to reconfigure and reconstruct an existing traffic circle (the "Traffic Circle") and surrounding City owned right-of-way areas adjacent to the Master Parcel ("City Property"), which proposal contemplates the installation of pavers and landscaping, as well as the relocation 287 of roadways and landscaped areas within the right-of-way (the "Traffic Circle Improvements"); and WHEREAS, the Traffic Circle is depicted and legally described on the attached Exhibit B-1, the City Property is depicted and legally described on the attached Exhibit B-2, and the Traffic Circle Improvements are depicted on the attached Exhibit B-3 (the "Traffic Circle Improvements Site Plan"); and WHEREAS, the Owner will be responsible for maintaining the portion of the City Property where Traffic Circle Improvements have occurred; and WHEREAS, the City has requested a covenant from the Owner to ensure that the improvements installed by or on behalf of the Owner will be maintained in a satisfactory manner, as described in this Declaration, in perpetuity without cost or obligation to the City, for as long as the City does not require the removal and replacement of such improvements, as such removal and replacement may be required pursuant to the terms and conditions of this Declaration. NOW, THEREFORE, the Owner voluntarily covenants and agrees that the Master Parcel shall be subject to the following provisions that are intended and shall be deemed to be covenants running with the land and binding upon the Owner, its successors in interest and assigns, as follows: 1. Preamble. The recitals and findings set forth in the preamble of this Declaration are hereby adopted by reference thereto and incorporated herein as 2 288 if fully set forth in this Section. As used in this Declaration, the term "Owner" shall mean, initially, Seville Acquisition, LLC, and following the conveyance of the Master Parcel by Seville Acquisition, LLC, "Owner" shall mean and refer to the then-current owner(s) of the Master Parcel. 2. Maintenance Obligations. The Owner shall be required to perform maintenance on all of the Traffic Circle Improvements as reasonably necessary from time to time to ensure that the City Property shall, at all times, remain in proper condition as follows: (i) repairing and/ or replacing broken or cracked brick pavers; (ii) maintaining, trimming, removing or replacing the landscaping in at least the same or substantially similar level of landscaping to that which is initially placed on the City Property by Owner; and (iii) maintaining the paved surface areas on the City Property in a level condition so as not to create a tripping hazard for pedestrians. The Owner shall be responsible for restoring, repairing and/ or replacing the pavers and landscaping within a reasonable time, not exceeding forty-five (45) calendar days, following "Acts of Nature" or a permitted Utility Company or City contractor's maintenance, repair and/ or replacement of any portion of the curbs, gutters, storm drains, utility facilities, roadways or other improvements abutting and/ or lying on or under the City Property (the "Work"). The City, Utility Company or City contractor shall notify 3 289 Owner in writing in advance of such Work and shall make all necessary effort to salvage and store on site the Traffic Circle Improvements' salvageable material and shall provide a temporary restoration surface with a City standard material such as cement or asphaltic concrete. to Maintain /City's to Compel Maintenance. an instance where the City has determined after reasonable investigation that the Owner has not adequately maintained, or replaced the Traffic Circle Improvements accordance with the requirements of Section 2 of this Declaration, or when the City's Parks Department deems that landscaping within the Traffic Circle Improvements is not properly maintained in accordance with the requirements of Section 2 of this Declaration (collectively a "Default"), then after having given the Owner forty-five (45) calendar days written notice of and opportunity to cure the Default, the Owner acknowledges that the City, as the affected local government, has (i) the power and standing to initiate, or intervene in, any proceeding relevant to the condition or maintenance of the City Property and/ or the Default and (ii) the power to take actions to require the Owner to maintain the Traffic Circle Improvements according to the maintenance standards set forth in Section 2. The Owner and its successors and assigns hereby forever waive any objection to such standing, initiation or intervention by the City (after notice and an opportunity to cure as set forth in this Section 3). If the Owner does not cure the Default to the reasonable satisfaction of the City and/ or the City1s Parks Department within the forty-five (45) 4 290 calendar day cure period, then the City also has (i) the right to terminate this Declaration and repair or replace the Traffic Circle Improvements on the City Property, following the forty-five (45) calendar days written notice and cure period or (ii) to exercise self-help measures to correct the Default If the City incurs expenses in connection with maintaining, repairing or replacing the Traffic Circle Improvements on the City Property, then all maintenance, repair and replacement expenses incurred by the City shall be reimbursed by Owner within thirty (30) days after the City provides written invoice and supporting documentation to Owner relating to such maintenance, repair and/ or replacement expenses. Any such expenses for maintenance, repair and/ or replacement not timely reimbursed to the City shall constitute a lien against the Master Parcel. 4. Grant of Easements. Owner grants an easement to the City for the purpose of permitting the public ingress and egress over that portion of the Master Parcel depicted in Exhibit C, and more specifically as described in the legal description attached as Exhibit C. The City grants a non-exclusive easement to Owner over the City Property for the purpose of installing, maintaining, repairing, replacing and removing, as applicable, the Traffic Circle Improvements. The City will still have the right to install utilities and/ or grant utility easements within the non-exclusive easement. 5. Public Beach Walk. The Owner has voluntarily offered, proffered and agreed to construct a grade level public beach walk ("Public Beach Walk") along the rear of the subject site (2901 Collins Avenue), from approximately 29th Street to 30th Street, which 291 shall be implemented according to the following conditions. a. The existing raised board walk adjacent to the dune, in between the south right-of-way line of 29th Street and the north right-of-way line of 3Qth Street shall be demolished and removed. A new Public Beach Walk shall be designed, permitted and built by the applicant and shall connect to the existing raised boardwalk to the north of 30th Street and to the south of 29th Street. All costs associated with the design, permitting and construction of the Public Beach vValk, as described herein, shall be borne by the Owner. b. The Public Beach Walk shall be consistent with the beach walk master plan, and shall require the review and approval of the Public Works Department, as well as all other applicable regulatory agencies and authorities. c. The Public Beach Walk shall be permitted and substantially completed prior to the issuance of the Final Certificate of Occupancy for the work approved by the Historic Preservation Board in HPB file no. ~~~J Order dated ___ ....,.J copy attached as Exhibit D. However, should the completion of the Public Beach Walk be delayed by circumstances beyond the Owner's control, such as permitting delays by the City or any State agency, or other agency having jurisdiction, the issuance of the Final Certificate of Occupancy shall not be withheld provided that the cost of completion is bonded, or placed in escrow pursuant to a further agreement with the City, in a form subject to the approval of the City 6 292 Attorney. 6. No City Obligation or Party The Owner acknowledges that the City has and will have no financial obligations or liability for the improper maintenance of Traffic Circle Improvements by Owner, which are appropriately within the obligations of the Owner to maintain the Traffic Circle Improvements as provided in Section 2. It is the intention of the parties hereto that no third party beneficiary rights are created or acknowledged through this Declaration. 7. Term of Declaration. This Declaration shall remain full force and effect and shall be binding upon the Owner for an initial period of thirty (30) years from the date this instrument is recorded in the public records, and shall be automatically extended for successive periods of ten (10) years, unless modified, amended or released by mutual agreement of Owner and the City prior to the expiration thereof or terminated by the City as provided for in Section 3 of this Declaration. 8. Modification. This Declaration may be modified, amended or released as to any portion of the Master Parcel, Traffic Circle or City Property encumbered by this Declaration by a written instrument executed by the City and Owner , provided that same has been approved by the Director of the Public Works Department. Should this instrument be so modified, amended or released, the Director of the Public Works Department, or their successor, or other administrative officer with jurisdiction over the matter, shall execute a written instrument in recordable form, within thirty (30) days after 7 293 such instrument presented to the Director, effectuating and acknowledging such modification, amendment or release. 9. Severability. Invalidation of any provision of this Declaration by judgment of Court shall not affect any of the other provisions of this Declaration, which shall remain in full force and effect. This Declaration shall be recorded in the Public Records of Miami- Dade County, Florida, at the cost of the Owner. 11. City Inspection. It understood and agreed that any official inspector of the City may have the right at any time during normal working hours to investigate the use and development of the Traffic Circle Improvements, to determine whether the conditions of this Declaration and the requirements of the City's building, zoning, land development regulations and minimum construction and maintenance standards relating to the Traffic Circle Improvements are being complied with. 12. Hold Harmless and Indemnification. The Owner agrees to hold harmless, indemnify and defend the City and its elected and appointed officials, and employees ("City Indemnitees"), from and against any and all actions, lawsuits, claims, liabilities, damages, judgments, sums of money, losses and expenses, in law or in equity, including, but not limited to, reasonable attorneys' fees and costs at the trial court and all appellate levels, which may arise in connection with the approval, installation and maintenance of the Traffic Circle Improvements on or abutting the City Property by Owner, except to the 8 294 extent caused by the City's own gross negligence or willful misconduct. The City shall have the right to select counsel at rates then prevailing in I\1iami-Dade County, whose reasonable fees and costs the Owner will pay. An action to enforce the terms and conditions of this Declaration relating to the Traffic Circle Improvements may be brought by the City and may be by action at law or in equity against Owner violating or attempting to violate any such provision of this Declaration, either to restrain violations or to recover damages. The prevailing party in the action or suit shall be entitled to recover costs and reasonable attorneys' fees, at all levels of trial and appeal. This enforcement provision shall be in addition to any other remedies available under the law. IN WITNESS WHEREOF, the Owner and City have duly executed this Declaration as of the day and year first above written. 295 Signed, Sealed and Delivered In Our Presence: Signed, Sealed and Delivered In Our Presence: Public Works Director Approved as to form & language & for execution City Attorney Dated Dated 10 OWNER: Seville Acquisition, LLC, a Delaware limited liability company By: __________________________ _ Name: _______________________ __ Title:-------------- CITY: City of Miami Beach, Florida, a municipality of the State of Florida By: ________________________ _ Name: ______________ _ Title:--------------- 296 STATE OF FLORIDA COUNTY MIAMI-DADE ) ) ss ) FOREGOING INSTRUMENT was acknowledged before me 2012 by as ACQUISITION, LLC., a Delaware limited liability company. He/She personally known to me or has produced as identification. My Commission Expires: NOTARY PUBLIC, State of Florida Print Name:----~-~-~-- STATE OF FLORIDA ) ) ss COUNTY OF MIAMI-DADE ) THE FOREGOING INSTRUMENT was acknowledged before me this_ day of 2012 by as of CITY OF MIAMI BEACH, FLORIDA, a municipality of the State of Florida. He/She is personally known to me or has produced as identification. My Commission Expires: NOTARY PUBLIC, State of Florida Print Name:--~~~~~-~~- 11 297 EXHIBIT A Legal Description of Master Parcel 12 298 EXHIBIT B-1 Depiction and Legal Description of Traffic Circle 13 299 EXHIBITB-2 Depiction and Legal Description of City Property 14 300 EXHIBIT B-3 Traffic Circle Improvements Site Plan 15 301 EXHIBIT C Depiction and Legal Description of Portion of Master Parcel Subject to an Easement 16 302 EXHIBITD Historic Preservation Board Order 17 303 304