R7C-Development Agreement w- 8701 Collins Development LLCCity of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www. miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members of the Commission
FIRST READING
PUBLIC HEARING
4 MIAMIBEACH
FROM: Jimmy L. Morales, City Manager
Raul Aguila, City Attorney
DATE: October 29,2014
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, APPROVING, FOLLOWING FIRST READING/PUBLIC
HEARING OF A DEVELOPMENT AGREEMENT AS AUTHORIZED UNDER SECTION
118-4 OF THE CITY CODE, AND SECTIONS 163.3220 163.3243, FLORIDA
STATUTES, BETWEEN THE CITY AND 8701 COLLINS DEVELOPMENT, LLC
("8701"), WHICH DEVELOPMENT AGREEMENT, lN PERTTNENT PART, (1)
MEMORIALIZES THE CONDITIONS FOR VACATING THE CITY'S RIGHT OF WAY
AT 87rH TERRACE EAST OF COLLTNS AVENUE ("CITY PARCEL"I; Ql GRANTS
TO THE CIry A PERPETUAL PEDESTRIAN ACCESS EASEMENT ACROSS A
PORTION OF THE VACATED CITY PARCEL; (3) ENSURES THE PAYMENT TERMS
FOR 8701'5 PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION, IN THE
AMOUNT OF $10.5 MILLION DOLLARS, TO BE USED BY THE CITY FOR PUBLIC
PURPOSES; (4) PROVIDES FOR THE TERMS AND CONDITIONS UNDER WHICH
8701 WILL DESIGN, DEVELOP AND CONSTRUCT CERTAIN IMPROVEMENTS TO
THE CITY'S RIGHT.OF.WAY AT 87TH STREET AND COLLINS AVENUE,
INCLUDING WITHOUT LIMITATION, THE TERMS OF A MANAGEMENT
AGREEMENT BETWEEN THE CITY AND 8701; AND (5) DELINEATES THE
CONDITIONS FOR THE DESIGN, DEVELOPMENT AND CONSTRUCTION OF THE
PROJECT LOCATED AT 8701 COLLINS AVENUE AS A HOTEL AND/OR
RESIDENTIAL CONDOMINIUM SITE; AND FURTHER SETTING THE SECOND AND
FINAL READING OF THE DEVELOPMENT AGREEMENT FOR A TIME CERTAIN.
On September 17th, 2014, after second reading public hearing, the City
Commission approved Resolution No. 2014-28754, and shall be referred to as the
"Vacation Resolution", approving with conditions, the vacation of a 50 foot wide right-of-
way, running from Collins Avenue, east 360 feet to Tract "A", currently known as 87th
Terrace (hereinafter "City Parcel") in favor of 8701 Collins Development, LLC ("8701").
8701 owns the Dezerland Hotel, located at 8701 Collins Avenue (hereinafter the
Agenda ltem - A? C
oate /o4Q'/{138
Development Agreement with 8701 Collins Avenue LLC, First Reading - Public Hearing
October 29, 2014 Page 2of 5
"Property"), which is located to the south of and adjacent to the City Parcel and intends
to redevelop the Property, together with the parking lot located on the north half of the
Property and portions of the City Parcel, into a hotel, condo-hotel, and/or residential
condominium (hereinafter the "Project").
ln contemplation of this Project, 8701 is required to enter into a Development
Agreement with the City pursuant to Sections 163.3220 - 163.3243, Florida Statutes
("Development Agreement") to memorialize the terms and conditions of the Project,
including the vacation of the City Parcel, and any other conditions imposed by the City
Commission. The material terms for the Development Agreement as delineated in the
Term Sheet, were approved by the City Commission during the September 10, 2014
Commission meeting. The Development Agreement has been drafted consistent with
both the term sheet and vacation resolutions.
Under the zoning district and the requirements of the Development Agreement
the following is a list of permitted uses for the site, which may include condominiums;
apartments; apartment-hotels; hotels; condo/hotel units; and accessory uses such as
facilities for conventions, banquets and other functions; spa; beachfront recreational
facilities; restaurants; parking facilities; administrative office space; and any other hotel
or resort related uses including accessory uses commonly associated with hotels, as
permitted under the City's Land Development Regulations. The maximum residential
density is 100 dwelling units, peracre. The maximum building intensity is a floorarea
ratio of 2.0. The maximum building height is 200 feet. The scale of the hotel use is
limited by setback, height, floor area ratio, minimum room size and other provisions of
the Land Development Regulations. The height of any habitable building on the
Property shall not exceed 200 feet to the top of the roof, and architectural projections
shall be required to comply with the terms of the City's Land Development
Regulations.
The Proposed Development Agreement:
Below is a summary of the material terms from the Development Agreement:
a. 8701 has offered a voluntary public contribution (hereinafter the "Voluntary
Contribution") of $10.5 Million to the City in connection with the vacation of the
City Parcel. All funds shall be allocated to public projects in North Beach, as
shall be determined by the City Commission, in its sole and reasonable
discretion;
b. 8701 will make the first payment, in the amount of $1,000,000, within ten
(10) business days following the City Commission's final approval of the
Development Agreement. This payment will be non-refundable;
c. 8701 will apply for a full building permit for the Project, using commercially
reasonable efforts, no later than February 19,2016;
d. 8701 will pay the City $a.5 million on the earlier of: (i) within ten (10)
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Development Agreement with 8701 Collins Avenue LLC, First Reading - Public Hearing
October 29, 2014 Page 3 of 5
business days of the issuance of a full building permit for the Project, or (ii)
November 19,2016. The actual vacation of the City Parcel shall be effective as
of the date the 8701 makes the $4.5 million payment. The $4.5 million payment
shall be non-refundable.
e. 8701 will pay the remaining $5 million in four (4) equal payments of $1.25
million every six (6) months starting on the earlier of: (i) six (6) months after the
City's issuance of the full building permit for the Project, or (ii) May 19,2017;
provided, however, that the entire amount remaining to be paid shall be paid ten
(10) days prior to the issuance of a temporary certificate of occupancy (TCO) or
certificate of occupancy (CO), whichever comes first, for the Project. The City
may condition and withhold the issuance of the TCO or CO for the Project upon
full and final payment of the remaining balance of the Voluntary Contribution. The
$5 million payment shall also be non-refundable;
f . 8701 shall develop and construct the Project consistent with the RM-2
zoning regulations and the terms of the Development Agreement;
g. No later than ten business days following the City Commission's final
approval of the Development Agreement, 8701 shall transfer to the City a
perpetual public pedestrian access easement over a portion of the City Parcel,
subject to the review and approval of City staff, not to be unreasonably withheld,
in order to provide beach access to the public (the "City Easement");
h. The City Easement shall be improved as part of the Project and shall be
open to the public and no later than the date a TCO or CO (whichever comes
first) is issued for the Project. 8701 shall be solely responsible for all costs and
work associated with the improvement (including, without limitation, the planning,
permitting or construction) of the vacated City Parcel, as part of the Project
including, but not limited to resurfacing, drainage, landscaping, hardscaping,
sidewalks, irrigation, signage, beach access signage, lighting, design and
construction of the City Easement;
i. 8701 shall be responsible for the safety, security and maintenance of the
City Easement;
j. 8701 will enter into a Management Agreement for the 87th Street City right
of-way, allowing 8701 to develop, maintain, pave, drain, light, landscape and
install street furniture along this right-of-way in order to open the road to
pedestrian traffic;
k. 8701 may seek from the City development approvals and an easement
agreement with the City in order to install balconies over the City's 87th Street
right-of-way;
l. 8701 will be responsible for submitting and obtaining any and all final,
non-appealable development approvals for the Project (i.e. Design Review
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Development Agreement with 8701 Collins Avenue LLC, First Reading - Public Hearing
October 29, 2014 Page 4 ot 5
Board, Planning Board, Board of Adjustment.) 8701 agrees and acknowledges
that any such development approvals are subject to, and conditioned upon,
approval by applicable development boards, in the exercise of their police
powers under the City Code and applicable Florida law;
m. Except as to involuntary transfers (as shall be defined in the Development
Agreement and which will include, without limitation, foreclosure transfers and
transfers in lieu of foreclosure), 8701 shall not be entitled to assign or transfer its
rights under the Development Agreement until after the earlier of (i) issuance of a
Certificate of Occupancy ("CO") for the Project, or (ii) the payment of all of the
Voluntary Contribution. Any such transferee shall assume all remaining
obligations of 8701 under the Development Agreement including, without
limitation, (i) 8701's obligation to grant and improve the City Easement and (ii) to
improve the 87th Street right-of-way; provided, however, that as to subsection (ii)
the City may, at its sole discretion, elect not to proceed with, or terminate (as the
case may be) the Management Agreement for the 87th Street right-of-way.
n. 8701 shall pay the remaining $5 million in four (4) equal payments of
$1.25 million every six (6) months starting on the earlier of: (A) six (6) months
after the City's issuance of the full building permit for the Project, or (B) May 19,
2017;, provided, however, that the fourth and final installment shall be paid no
later than ten (10) days prior to the issuance of a temporary certificate of
occupancy (the 'TCO") or certificate of occupancy (the "CO"), whichever comes
first, for the Project. The City may condition and withhold the issuance of the
TCO and/or CO for the Project pending full and final payment of the remaining
balance of the Voluntary Contribution. The $5 million payment shall also be non-
refundable, as and when each payment is made.
o. 8701 shall defend, indemnify, and hold the City harmless should any Law
Suit be filed; and
p. 8701 agrees to reimburse the City for any attorney's fees incurred by the
City for outside counsel's review and negotiation of the Development Agreement,
and related agreements, not to exceed reasonable amounts, as mutually agreed
upon by the Parties (which counsel shall be selected and approved by the City
Attorney).
The City Attorney has hired Stacy H. Krumin, of Squire Patton Boggs (US) LLP,
to assist with the expedited drafting of the Development Agreement. As indicated
above, and in the Development Agreement, 8701 shall be responsible for the
reasonable expense of outside counsel.
The City complied with all notice
1 63.3225, Florida Statutes.
Recommendation:
requirements of Section 118-4 and Section
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Development Agreement with 8701 Collins Avenue LLC, First Reading - Public Hearing
October 29,2014 Page Sof S
Approval of the resolution and associated Chapter 163 Development Agreement,
after first reading/public hearing, and schedule second reading/final public hearing.
142
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, APPROVING, FOLLOWING FIRST
READING/PUBLIC HEARING OF A DEVELOPMENT AGREEMENT AS
AUTHORIZED UNDER SECTION 118.4 OF THE CITY CODE, AND
SECTIONS 1633220 _ 163.3243, FLORIDA STATUTES, BETWEEN
THE CITY AND 8701 COLLINS DEVELOPMENT, LLC (,,8701"), WHTCH
DEVELOPMENT AGREEMENT, IN PERTINENT PART, (1)
MEMORIALIZES THE CONDITIONS FOR VACATING THE CITY'S
RIGHT OF WAY AT 87TH TERRACE EAST OF COLLINS AVENUE
("CITY PARCEL"); (21 GRANTS TO THE CITY A PERPETUAL
PEDESTRIAN ACCESS EASEMENT ACROSS A PORTION OF THE
VACATED CITY PARCEL; (3) ENSURES THE PAYMENT TERMS FOR
8701'S PAYMENT OF A VOLUNTARY MONETARY CONTRIBUTION,
IN THE AMOUNT OF $10.5 MILLION DOLLARS, TO BE USED BY THE
CITY FOR PUBLIC PURPOSES; (4) PROVIDES FOR THE TERMS AND
CONDITIONS UNDER WHICH 8701 WILL DESIGN, DEVELOP AND
CONSTRUCT CERTAIN IMPROVEMENTS TO THE CITY'S RIGHT-OF.
WAY AT 87TH STREET AND GOLLINS AVENUE, INCLUDING
WITHOUT LIMITATION, THE TERMS OF A MANAGEMENT
AGREEMENT BETWEEN THE CITY AND 8701; AND (5) DELINEATES
THE CONDITIONS FOR THE DESIGN, DEVELOPMENT AND
CONSTRUCTION OF THE PROJECT LOCATED AT 8701 COLLINS
AVENUE AS A HOTEL AND/OR RESIDENTIAL CONDOMINIUM SITE;
AND FURTHER SETTING THE SECOND AND FINAL READING OF
THE DEVELOPMENT AGREEMENT FOR A TIME CERTAIN.
WHEREAS, on September 17th,2014, after second reading public hearing, the
City Commission approved Resolution No. 201 4-28754, attached and incorporated as
Exhibit "A" hereto and also referred to as the "Vacation Resolution", approving, with
conditions, the vacation of a 50 foot wide right-of-way, running from Collins Avenue,
east 360 feet to Tract "A", currently known as 87th Terrace (hereinafter "City Parcel"), in
favor of 8701 Collins Development, LLC ('8701"); and
WHEREAS, 8701 owns the Dezerland Hotel, located at 8701 Collins Avenue
(hereinafter the "Property"), which is located to the south of and adjacent to the City
Parcel, and intends to redevelop the Property, together with the parking lot located on
the north half of the Property and portions of the City Parcel, into a hotel, condo-hotel,
and/or residential condominium (hereinafter the "Project"); and
WHEREAS, in contemplation of this Project, 8701 will be seeking to enter into a
development agreement with the City pursuant to Sections 163.3220 - 163.3243,
Florida Statutes ("Development Agreement") to memorialize the terms and conditions of
143
the Project, including the vacation of the City Parcel, and any other conditions imposed
by the City Commission; and
WHEREAS, Sections 163.3220 - 163.3243, Florida Statutes, and Section 118-4
of the City's Code require two public hearings on the Development Agreement; and
WHEREAS, the Development Agreement shall provide, amongst other things,
the following terms and conditions:
a. 8701 has offered a voluntary public contribution (hereinafter the "Voluntary
Contribution") of $10.5 Million to the City in connection with the vacation of the
City Parcel, with such funds to be payable in accordance and subject to the
terms of the Development Agreement (which incorporates the terms of the
Vacation Resolution). All funds shall be allocated to public projects in North
Beach, as shall be determined by the City Commission, in its sole and
reasonable d iscretion;
b. 8701 shall develop and construct the Project consistent with the RM-2
zoning regulations and the terms of the Development Agreement;
c. No laterthan ten (10) business days following the City Commission's final
approval of the Development Agreement, 8701 shall transfer to the City a
perpetual public pedestrian access easement over a portion of the City Parcel,
subject to the review and approval of City staff, not to be unreasonably withheld,
in order to provide beach access to the public (the "City Easement");
d. The City Easement shall be improved as part of the Project and shall be
open to the public and no later than the date a TCO or CO (whichever comes
first) is issued for the Project. 8701 shall be solely responsible for all costs and
work associated with the improvement (including, without limitation, the planning,
permitting or construction) of the vacated City Parcel, as part of the Project
including, but not limited to resurfacing, drainage, landscaping, hardscaping,
sidewalks, irrigation, signage, beach access signage, lighting, design and
construction of the City Easement;
e. 8701 shall be responsible for the safety, security and maintenance of the
City Easement;
f. 8701 will enter into a Management Agreement for the 87th Street City right-
of-way, allowing 8701 to develop, maintain, pave, drain, light, landscape and
install street furniture along this right-of-way in order to open the road to
pedestrian traffic;
g. Except as to involuntary transfers (as shall be defined in the Development
Agreement and which will include, without limitation, foreclosure transfers and
transfers in lieu of foreclosure), 8701 shall not be entitled to assign or transfer its
144
rights under the Development Agreement until after the earlier of (i) issuance of a
Certificate of Occupancy ("CO") for the Project, or (ii) the payment of all of the
Voluntary Contribution. Any such transferee shall assume all remaining
obligations of 8701 under the Development Agreement including, without
limitation, (i) 8701's obligation to grant and improve the City Easement and (ii) to
improve the 87th Street right-of-way; provided, however, that as to subsection (ii)
the City may, at its sole discretion, elect not to proceed with, or terminate (as the
case may be) the Management Agreement for the 87th Street right-of-way.
h. 8701 agrees to reimburse the City for any attorney's fees incurred by the
City for outside counsel's review and negotiation of the Development Agreement,
and related agreements, not to exceed reasonable amounts, as mutually agreed
upon by the Parties (which counsel shall be selected and approved by the City
Attorney).
WHEREAS, the City and 8701 have negotiated the attached Development
Agreement.
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 approve, following first reading/public hearing of a Development
Agreement as authorized under Section 118-4 of the City Code, and Sections 163.3220
- 163.3243, Florida Statutes, between the City and 8701 Collins Development, LLC
("8701"), which Development Agreement, in pertinent part: (1) memorializes the
conditions for vacating the City's right of way at 87rH Terrace east of Collins Avenue
("City Parcel"); (2) grants to the City a perpetual pedestrian access easement across a
portion of the vacated City Parcel; (3) ensures the payment terms for 8701's payment of
a Voluntary Monetary Contribution, in the amount of $10.5 million dollars, to be used by
the City for public purposes; (4) provides for the terms and conditions under which 8701
will design, develop and construct certain improvements to the City's right-of-way at
87rH Street and Collins Avenue, including without limitation, the termsof a management
agreement between the City and 8701; and (5) delineates the conditions for the design,
development and construction of the project located at 8701 Collins Avenue as a hotel
and/or residential condominium site; and further setting the second and final reading of
the Development Agreement for a time certain.
PASSED and ADOPTED this day of October, 2014.
ATTEST:
Philip Levine, Mayor
APPROVED AS TC)
FORM & LANGUAGE
& FOR EXECUTIONFOR EXECUTIONg! , ,,t,lt+
Atiorney ,ffi> Dole
Rafael E. Granado, City Clerk
145