R7A-Grant Easement To Collins 3300 LLC And 3420 Collins Avenue LLCCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And The City Commission Of The City Of Miami Beach, Florida, Granting
An Easement To Collins 3300, LlC And 3420 Collins Avenue, llC, Owners Of The Properties
located At 3301 Indian Creek Drive, 3400 Collins Avenue And 3420 Collins Avenue, Following A Duly
Noticed Public Hearing, For A Proposed Subsurface Parking Garage, That Spans The Entire Width Of
The 50~Foot Public Right-Of-Way Of 34th Street For A Length Of Approximately 93 Feet, Pursuant To
The Procedures And Standards Recommended By The land Use And Development Committee, And
Finance And ommittee.
Issue:
I Shall the Mayor and the City Commission approve the Resolution?
, ....
Collins 3300, LLC And 3420 Collins Avenue, lLC, {Applicants) wish to construct a hotel with
accessory assembly space, a parking garage, and retail and restaurant uses. They propose to
connect the Properties and provide for required parking with a subsurface parking garage beneath
34111 Street The parking garage is proposed to be 12 feet 10 inches below ground-level with a width of
50 feet and a length of approximately 93 feet At the Historic Preservation Board meeting, the
Applicants received approval (pursuant to HPB Order No. 7299) to redevelop the Properties.
The item was referred to the Land Use Committee and the Finance and Citywide Projects Committee
for policy direction. At the June 13, 2012 land Use Committee meeting, it was determined that an
easement was the more appropriate instrument for allowing a subterranean parking facility across the
City right-of~way, that the value of the easement should be determined via an appraisal conducted for
the City and paid for by the Applicants, and that the Commission should set a public hearing to
consider granting the easement. At the June 28, Finance and Citywide Projects Committee, it was
recommended to use the fee simple methodology for valuation of this easement with flexibility to
adjust the valuation when appropriate, based on recommendations from the City appraiser.
At the July 18, 2012 City Commission meeting, pursuant to Reso No. 2012~27948, the Commission
set a public hearing for the September 12, 2012 Commission meeting. At that meeting, the item was
opened and continued to the October 24, 2012 Commission Meeting.
Staff has reviewed the appropriateness of the facility pursuant to the criteria established under Section
82~38 of the City Code for the proposed sale or lease of City property. The City has determined that
the criteria are satisfied; however, terms of the easement agreement are not yet finalized.
THE ADMINISTRATION RECOMMENDS THAT THIS ITEM BE OPENED AND CONTINUED.
Financial Information:
Source of
Funds:
OBPI
Financial Impact Summary:
Account
308
AGENDA ITEM---~.~..;...;.-
DATE __,;.;,;;.__;;;;;._;,__;;_;;;__
Ml MIBE
C:ity of Miami leach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City mission
PUBLIC HEARING
FROM: Kathie G. Brooks, Interim City Manager
DATE: October 24, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, GRANTING AN EASEMENT TO COLLINS 3300, LLC
AND 3420 COLLINS AVENUE, LLC, OWNERS OF THE PROPERTIES LOCATED
AT 3301 INDIAN CREEK DRIVE, 3400 COLLINS AVENUE AND 3420 COLLINS
AVENUE, FOLLOWING A DULY NOTICED PUBLIC HEARING, FOR A PROPOSED
SUBSURFACE PARKING GARAGE, THAT SPANS THE ENTIRE WIDTH OF THE
50-FOOT PUBLIC RIGHT·OF~WAY OF 34TH STREET FOR A LENGTH OF
APPROXIMATELY 93 FEET.
ADMINISTRATION RECOMMENDATION
The Administration recommends that this item be opened and continued.
BACKGROUND
Collins 3300, llC And 3420 Collins Avenue, llC, (Applicants) are owners of the properties
located at 3301 Indian Creek Drive, 3400 Collins Avenue and 3420 Collins Avenue (collectively,
the Properties). The Properties are located in the Collins Waterfront Historic District and
presently a vacant parcel, an existing 3-story hotel, and a vacant parcel, respectively.
The Applicants wish to construct a 5-story hotel with an accessory assembly space on the
vacant parcel at 3301 Indian Creek Drive, renovate the 3-story hotel at 3400 Collins Avenue,
and construct a 6-story parking garage with accessory retail and restaurant uses on the vacant
parcel at 3420 Collins Avenue. They propose to connect the Properties and provide for required
parking with a subsurface parking facility beneath 34th Street The subsurface parking facility is
proposed to be 12 feet 1 0 inches below ground-level with a width of 50 feet and a length of
approximately 93 feet At the Historic Preservation Board meeting on February 14, 2012, the
Applicants received approval (pursuant to HPB Order No. 7299) to redevelop the Properties.
This proposed subsurface parking garage was then referred to the land Use Committee and
the Finance and Citywide Projects Committee for policy direction. At the June 13, 2012 land
Use Committee meeting, it was determined that:
1. An easement was the more appropriate instrument for allowing a subsurface parking
facility across City right-of-way.
The value of the easement should be determined via an appraisal conducted for the
City and paid for by the Applicants.
3. The Commission should set a public hearing to consider granting the easement
309
City Commission Memomndum -3400 Collins A venue Subte"anean Easement
October 24, 2012
Page 2 of3
At the June 28, 2012 Finance and Citywide Projects Committee, it was recommended to use the
fee simple methodology for valuation of this easement with flexibility to adjust the valuation
when appropriate, based on recommendations from the City appraiser. An appraisal prepared
by Waronker & Rosen, Inc. on June 27, 2012, estimates the value of the easement to be
$1 ,250,000.
At the July 18, 2012 City Commission meeting, pursuant to Resolution No. 2012-27948, the
Commission set a public hearing for the September 12, 2012 Commission meeting.
This item was opened and continued at the September 12, 2012 Commission meeting.
ANALYSIS
There is no section of the City Code that provides guidance on the appropriateness of granting
an easement Therefore, staff has reviewed the appropriateness of the facility pursuant to the
criteria established under Section 82-38 of the City Code for the proposed sale or lease of City
property as it has done for the proposed aerial easement across Ocean Court for the Tides
HoteL Those criteria are:
1. Whether or not the proposed use is in keeping with city goals and objectives and
conforms to the city comprehensive plan.
Satisfied -The property is located within the RM-2 Multifamily Residential Medium
Intensity future land use category, and surrounded by this and the RM-3 Multifamily
Residential High Intensity future land use category. The proposed use is underground
parking garage use for the adjacent hotel facilities. The proposed use of the adjacent
properties as hotel facilities is consistent with the future land use category description
contained in the Comprehensive Plan.
2. The impact on adjacent property, including the potential positive or negative impacts
such as diminution of open space, increased traffic, noise level or enhanced property
values, improved development patterns and provision of necessary services. Based on
the proposed use of the property, the city shall determine the potential impact of the
project on city utilities and other infrastructure needs and the magnitude of costs
associated with needed infrastructure improvements. Should it become apparent that
further evaluation of traffic impact is needed; the proponent shall be responsible for
obtaining a traffic impact analysis from a reputable traffic engineer.
Satisfied -The property in question is surrounded on both the north and south by the
proposed hotel development, and the property to the east, across Collins Avenue, is
under the same ownership and approved for hotel and condominium use. There would
be no diminution of open space as proposed. No additional utility or infrastructure is
expected to be necessary. A traffic study was prepared as part of the development
review approval process, which indicated that the proposal would not degrade the level
of service of the surrounding roadway network below acceptable levels.
3. A determination as to whether or not the proposed use is in keeping with a public
purpose and community needs, such as expanding the city's revenue base, creating
jobs, creating a significant revenue stream, and improving tho community's overall
quality of life.
310
City Commission Memorandum-3400 Collins Avenue Subtel'T'anean Easement
October 24, 2012
Page 3 of3
Satisfied -The proposal is associated with an important new hotel development of
particular architectural distinction. 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 positive for the city's economic and
tourism development. The proposed hotel development is expected to provide a
significant number of jobs, and to provide additional property tax and resort tax revenues
to the City.
4. Determination as to whether or not the development is in keeping with the surrounding
neighborhood, will block views or create environmental intrusions, and evaluation of the
design and aesthetic considerations of the project.
Satisfied -The proposed easement is entirely underground, and should not create any
visual or environmental impacts on the surrounding neighborhood.
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 other than
those owned by the Applicants.
6. Such other issues as the city manager or his authorized designee, who shall be the city's
planning director, may deem appropriate in analysis of the proposed disposition.
Not applicable -The Planning Department has no other issues it deems appropriate to
analyze for this proposal.
The Administration's analysis above shows that the above criteria established under Section 82-
38 of the City Code is satisfied.
The Administration and Applicants are negotiating an easement agreement that provides for the
term discussed in the Land Use and Development Committee and the Finance and Citywide
Projects Committee; however, terms of the easement agreement are not yet finalized. The
Administration is also in the process of updating the previous appraisal to include not only the fee
simple valuation method requested by the FCWPC but also the highest possible value of the easement
CONCLUSION
The Administration recommends that this item be opened and continued to the November 14,
2012 Commission Meeting.
KGB/JGG/FHB/JJF/RWS/DEF
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