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C7G-Accept Subterranean Utility Easement 1700 West 25th StreetCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Accepting A Subterranean Utility Easement From Bernard Baumel (Trust), Owner Of The Property Located At 1700 West 25'n Street, For An Amount Of $100,000, For The Construction, lnstallation, Maintenance, Repair, And Reolacement Of Water And Sewer Mains. lntended Outcome Su Item Summary/Recommendation : The City has an 8-inch diameter watermain and an 8-inch diameter sanitary sewer force main running beneath the water channel separating Sunset lslands ll and lll. These mains were installed via an open cut trench method and have several bends that allow them to connect to easements on the islands that are offset from each other. Both the existing water and sewer subaqueous pipes have reached their life expectancy of +80 years. Therefore, they will need to be replaced soon. Due to the difficulty in permitting, as well as the intrusiveness of installing new mains via an open cut, the City has determined that the horizontal directional drill method as the most practical method for installing these mains. However, mains installed via this method can only have a limited deflection. As a result, the old easements are too far offset to be used, and a new easement is needed on Sunset lsland ll in order to install both the new subaqueous watermain and sanitary sewer force main. At its November 14,2012 Commission Meeting, the Commission adopted Resolution No. 2012-28060, accepting a subterranean utility easement from Bernard Baumel (Trust), owner of the property located at 1700 West 25'n Street, for the construction, installation, maintenance, repair, and replacement of water and sewer mains. However, the recording of the easement did not take place due to monetary compensation being requested by the owner. An appraisal for the property was conducted and presented to Public Works by Blazejack & Company on March 2013, which reported the market value of the partial interest property in the amount of One Hundred Twenty Five Thousand Dollars ($125,000). CURRENT STATUS City staff has met with the owner and has negotiated a value of the area needed for the installation of the utilities. The City has agreed to pay the owner a onetime sum of $100,000. THE ADMINISTRATION RECOMMENDS ADOPTING THE RESOLUTION. Board Recommendation: Financia! lnformation : Financial lmpact Summary: 425-041 0-000349 Eric Carpenter, Public Works X6012 T:IAGENDA\2014\December\PUBLIC WORKS\1700 W 25 ST Easement Sum.doc fiGElrBA rrEM c1 G* AA$AAAIBHACH o^tc t2-17'/t/238 g MIAMIBEACH City of Miomi Beoch, 1700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and of the FROM: Jimmy Morales, City DATE: December 17 ,2014 Manager SUBJECT: A RESOLUTION OF THE MA AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING A SUBTERRANEAN UTILITY EASEMENT FROM BERNARD BAUMEL (TRUST), OWNER OF THE PROPERTY LOGATED AT 17OO WEST 25th STREET, FOR AN AMOUNT OF $1OO,OOO, FOR THE CONSTRUCTION, INSTALLATION, MAINTENANGE, REPAIR, AND REPLACEMENT OF WATER AND SEWER MAINS. FUNDING $50,000 425-0410-000349 $50.000 425-0420-000349 $100,000 ADMINISTRATION RECOMMEN DATION The Administration recommends adopting the Resolution. BACKGROUND The City has an 8-inch diameter watermain and an 8-inch diameter sanitary sewer force main running beneath the water channel separating Sunset lslands ll and lll. These mains were installed via an open cut trench method and have several bends that allow them to connect to easements on the islands that are offset from each other. Both the existing water and sewer subaqueous pipes have reached their life expectancy of +80 years. Therefore, they will need to be replaced soon. Due to the difficulty in permitting, as well as the intrusiveness of installing new mains via an open cut, the City has determined that the horizontal directional drill method as the most practical method for installing these mains. However, mains installed via this method can only have a limited deflection. As a result, the old easements are too far offset to be used, and a new easement is needed on Sunset lsland ll in order to install both the new subaqueous watermain and sanitary sewer force main. At its November 14, 2012 Commission Meeting, the Commission adopted Resolution No. 2012- 28060, accepting a subterranean utility easement from Bernard Baumel (Trust), owner of the property located at 1700 West 25th Street, forthe construction, installation, maintenance, repair, and 239 City Commission Memorandum - Easement at 1700 W 25 Street December 17, 2014 Page 2 of 2 replacement of water and sewer mains. However, the recording of the easement did not take place due to monetary compensation being requested by the owner. An appraisal for the property was conducted and presented to Public Works by Blazejack & Company on March 2013, which reported a market value of the partial interest property in the amount of One Hundred Twenty Five Thousand Dollars ($125,000). CURRENT STATUS City staff has met with the owner and has negotiated a value of the area needed for the installation of the utilities for a onetime sum of $100,000. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the resolution. Attachments: A. Resolution 2012-28062 B. Aerial of existing watermain and foremain and proposed easement C. Sketch and legal description of the proposed easement D. Appraisal of real property J M/MT/ETC/J J F/BAM/FRS T:\AGENDAV014\DecembeAPUBLlC WORKS\1700 W 25 ST Easement Memo.doc 240 Attachment - A RESOLUTION NO.2012-28062 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING ASUBTERRANEAN UTTLITY EASEMENT FROM BERNARD S. BAUMEL, AS TRUSTEE UNDER TRUST AGREEMENT DATED NOVEMBER 28, 2OO4 OF THE PROPERTY LOCATED AT 17OO WEST ZSth STREET, FOR THE CONSTRUCTION, INSTALLATION, MATNTENANCE, REPAIR, AND REPLACEMENT OF WATER AND SEWER MAINS. WHEREAS, the City has an 8-inch diameter watermain and an 8-inch diameter sanitary sewer force main running beneath the water channel separating Sunset lsland ll and Sunset lsland lll; and WHEREAS, the water and sewer subaqueous existing pipes have reached their life expectancy of +80 years, and will therefore need to be replaced soon; and WHEREAS, due to the difficulty in permitting, as well as the intrusiveness of installing, new mains via open trench cut, the Clty has selected a horizontal directional drill method as the most practical method for installing new subaqueous mains; and WHEREAS, the existing easements are not suitable for the new installation, and a new easement is needed on Sunset lsland ll in order to install new mains; and WHEREAS, Bernard S. Baumel, as Trustee under Trust Agreement dated November 28, 2004 has agreed to provide the City with a subterranean utility easement, located at 1700 West 25th Street, forthe construction, installation, maintenance, repairand replacementof waterand sewer mains. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept a subterranean utility easement from Bernard S. Baumel, as trustee under trust agreement dated November 28, 2004 of the property located at 1700 West 25th Street, for the construction, installation, maintenance, repair, and replacement of water and sewer mains. PASSED AND ADOPTED this l4th day of l^Lovemhc, 2012. APPBOVED AS TO FORM & LANGUAGE ATTEST: T:\,AGENDA\2012\1 1-14-12\easements\1700 W 25 ST Easement Reso.doc 241 tro Ht) 'rl) lrl $(.) t-l[{ C)p rh T,(,)a q V) O 50Fl .F{ a2 /H eoq CN rJ) H V2 a.)m (h co t o I (E 242 Attachment - C )zr[--)r,r|.-- +|ffiffi;ffi, StdR z. ll"'1-''*'E'M', e::u iEnHH#w .- ll-*"*: ,k,Ewrk!,#], ,6rl/ mla- tsofP'- 'ioo'(c, -L---"=Hr'[*.*,:E,r:5rnc'} lf3j;:#ilHftiifl,+flsiirt?= SKETCH OF SUBTERRANEAN EASEMENT LEGAL DESCRIPTION: A SUBTERRANEAN UTILITY EASEMENT FOR THE CONSTRUCTION, INSTALLATION, MAINTENANCE, REPAIR, AND REPLACEMENT oF WATER AND SEWER MAINS, SAID EASEMENT LYrNG BETWEEN (-)10.00 FEET AND (-)25.00 FEET RELATTVE TO THE NORTH AMERICAN VERTICAL DATUM OF 1988 (NAVD 1988) AND BENEATH A PORTION OF THE LANDS AS DESCRIBED IN OFFICIAL RECORD BOOK 28611, PAGE 4159, OF THE PUBLIC RECORDS OF MIAMI.DADE COUNTY, FLORIDA, SAID EASEMENT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: THE WEST 1() FEET OF THOSE LANDS AS DESCRIBED IN SAID OFFICIAL RECORD BOOK 28611, PAGE 4149, DESCRIBED AS FOLLOWS: THE EAST 30 FEET OF LOT 1, BLOCK 2-H AND THE WEST 80 FEET OF LOT 8 AND ALL OF LOT 9, BLOCK 2G, 3RD REVISED PLAT OF SUNSET ISLANDS, AS RECORDED IN PLAT BOOK 40, AT PAGE 8 OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, LESS THE WEST 120 FEETTHEREOF. SAID EASEMENT AREA CONTAINING 2,OOO SQUARE FEET MORE OR LESS. THE SIDE LINES OF SAID EASEMENT SHALL BE SHORTENED OR LENGTHENED TO INTERSECT THE SOUTHERLY RIGHT OF WAY LINE OF 25TH STREET AND/OR THE NORTHERLY MEAN HIGH WATER LINE OF THE SOUTHERLY ADJACENT CANAL. LEGEND & ABBREVIATIONS: ORB, OFFICIAL RECORD BOOK DB. DEED BOOK(c) CALCULAIED DIMENS|ON Typ. TyplcALNTS NOT TO SCALE (P) PLAT DIMENSION R/W R|GHT-OF-WAY PG. PAGE PLL PLAT LOT LINE PB. PLAT BOOK B-if$)t+- .z-z-A CITY SUR\EYOR STA]E OF FLORIDA PROFESSIONAL SUR\EYOR AND MAPPER NO.4973 ,h t,'r ! ,{ AA itqi=";&i"$-."jE I ! !,i !i 1' 1:l ll q 19 I t: PUeLrc woRKs DEpARTMENT 170! CONENNON CSNER MNE. MA[l! BEAq, FL,33139 fMWN 8Yi L.F. :HECKEDi 8.T.B. scALEi &9!S REVISED + TITLE: EASEMENT, SUNSET ISLAND No. 2, 1700 W. 25 ST sM-20121 SHEET 1 OF 1 FIWORK\$ALL\CAD-DWG\PROJECTS\SlV\SN/-2012L(Rs 1 70O EASEMENT 243 Atischne:t- I APPRAISAL OF REAL PROPERTY Summary Appraisal Subsurface rights in real property 1700 W 25 Street- Sunset Island II Miami Beach, Florida 33140 Report 201315 PREPARED FOR City of Miami Beach Mrs. Anna Parekh Director 1700 Convention Center Dr. Miami Beach, FL 33139 PREPARED BY BLAZEJACK & COMPANY 172 W Flagler Street, Suite 340 Miami, Florida 33130 Phone: Q05)372-0211 Fax: (305) 374-1948 244 BLAaTACK&coleltw REAL ESTATE COLINSELORS March22,2013 City of Miami Beach Mrs..A.nna Parekh tDirector I 1700 Convention Center Dr. Miami Beach, FL 33139 Re; Appraisal of Real Property - Report No. 201315 Perpetual Easement W 25th Street-Miami Beach 1700 W 25 Street- Sunset Island II Miami Beach, Florida 33140 Dear Mrs. Parekh: At your request, rve have completed an appraisal in a summary report format of the Partial Interest in the above referenced real property. The appraisal states our opinion of the property's Market Value as is, subject to various Assumptions and Limiting Conditions set forth in the accompanying report. The physical inspection and analysis that form the basis ofthe report have been conducted by the undersigned. Our analyses have been prepared in compliance with the standards and regulations of the Uniform Standards of Professional Practice (USPAP) and the Supplemental Standards of the Appraisal Institute. The accompanying report includes pertinent data secured in our investigation, exhibits and the details of the processes used to arrive at our conclusion of value. As a result of the examination and study made, it is our opinion that the Market Value of the Partial Interest in the subject property, subject to economic conditions prevailing, as March 19,2013, is: $125,000 (oNE HITNDRED TWENTY FIyE THOUSAND DOLLARS) Respectfu lly submitted, BLAZEJACK & COMPANY , Digitally signed by John Blazejack Jo h n Blazeja ck 3ff1il:A3i:::i:i i;ll:=,, Date: 201 3.03.22 I 6:41;06 -04'OO' John Blazejack, MAI, CRE, FzuCS Partner Cert Gen RZ-0093 Jose Wong Senior Consultant Cert Gen RZ-2797 172W FLAGLER STREET, SUITE 340, MlAMl, FLORIDA 33130.PHONE (305)372-0211 .FAX (305) 374-1948 245 EASEMENT. W 25th Street 201315 REPORT SUMMARY OF FACTS AND CONCLUSIONS Perpetual Subsurface Easement Properly Name: Propefly Type: Location: Census Tract: Interest Appraised: Date of Appraisal: Dates of Inspection: Date of Report: Land Area: Zofing: Highest and Best Use: Perpetual Easement W 25th StreerMiami Beach, Florida 33140 Subsurface rights in real propertv 1700 W 25 Street- Sunset Island II Miami Beach Florida 33140 41.06 Partial Interest March 19,2013 March 19. 2013 March22,2013 2,000 SF or 0.05 Ac. RS-2 Single Family by City of Miami Beach The City is the only entity that is authorized to use the subsurface rights. BLAZEJACK dt COMPAI\TY REAL ESTATE COLTNSELORS 246 EASEMENT.W25thStreet 201315 REPORT Summary of Important Facts and Conclusions (continued) 201 2 Real Estate Taxes Parcel 02-3228-001 - 1 160 Millage Rate: Land Value Building Value Market Value Assessed Value: 2012 Taxes: 20.4701 $6,720,000 $1,648,741 $8,368,741 $4,702,615 $96,263 Value Indication, as of March 19,2013: Final Value Estimate "As Is" $125,000 BLAZEJACK & COMPANY REAL ESTATE COLINSELORS 247 EASEMENT-W25thStreet 201315 REPORT Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Parcel Data and Photographs Comparable Sales Data House Demolition Estimations Miami Dade Demographic Reports Engagement Letter Qualifications of the Appraisers BLAZEJACK dT COMPANY REAL ESTATE COUNSELORS 248 EASEMENT-W25thStreet 201315 REPORT CERTIFICATE I certify that, to the best of my knowledge and belief, o the statements of fact contained in this report are true and correct. o the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. o We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. r We have performed no appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. none . We have no bias with respect to the property that is the subj ect of this report or to the parties involved with this assignment. e Our engagement in this assignment was not contingent upon developing or reporting predetermined results. . our cornpensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of subsequent event directly related to the intended use ofthis appraisal. r Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. . John Blazejack and Jose Wong have made a personal inspection of the property that is the subject of this report. o No one provided significant real property appraisal assistance to the persons signing this certification. . The reported analyses, opinions, and conclusions were developed, and this reporl has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. . The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representative. o As the date of this report John Blazejack has Appraisal Institute. BLAZEJACK & COMPANY completed the continuing education program of the !. ,-r-- { ; ',\i ;t--?4 \ ,d .. { E;*r \*-}ii+qer}..4ilar John Blazejack MAI, CRE, FzuCS Cert Gen RZ-0093 Partner Cert Gen RZ-0093 Jose Wong Senior Consultant Cert Gen RZ-2797 BLLZE,JACK & COMPANY CERTIFICATE 249 EASEMENT-W25thStreet 201315 REPORT ASSUMPTIONS AND LIMITING CONDITIONS The appraisal is subject to the following assumptions and limiting conditions: I 2 No survey ofthe subject property was undertaken. The subject property is free and clear of all liens except as assumed by the appraisers for matters, which are of a legal rendered herewith. Good and marketable title is assumed. herein described. No responsibility is nature, nor is any opinion on the title The information contained herein has been gathered from sources deemed to be reliable. No responsibility can be taken by the appraisers for its accuracy. Correctness of estimates, opinions, dimensions, sketches and other exhibits which have been furnished and have been used in this report are not guaranteed. The value estimate rendered herein is considered reliable and valid only as ofthe date of the appraisal, due to rapid changes in the external factors that can significantly affect the property value. This study is to be used in whole and not in part. No part of it shall be used in conjunction with any other appraisal. Publication of this report or any portion thereof without the written consent of the appraiser is not permitted. The appraisers herein, by reason ofthis report, are not required to give testimony in court with reference to the properfy appraised unless notice and proper arrangements have been previously made therefore. The value estimate assumes responsible ownership and competent management. The appraiser assumes no responsibility for any hidden or in apparent conditions ofthe property, subsoil, or structures, which would render it more or less valuable. No responsibility is assumed for engineering, lvhich might be required to discover such factors. Neither all nor any part ofthe contents ofthis report shall be conveyed to the public through advertising, public relations, news, sales or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraisers or firm with which they are connected, or any reference to the Appraisal Institute. Any exhibits in the report are intended to assist the reader in visualizing the property and its surroundings. The drawings are not intended as surveys and no responsibility is assumed for their cartographic accuracy. Any drawings are not intended to be exact in size, scale, or detail. Areas and dimensions of the property may or may not have been physically measured. If furnished by the principal or from plot plans or surveys furnished by the principal, or from public records, we assume them to be reasonably accurate. No responsibility is assumed for discrepancies, which may become evident from a licensed survey ofthe property. The Americans with Disabilities Act (ADA) became effective January 26, 1992 sets strict and specific standards for handicapped access to and within most commercial and industrial buildings. For purposes of this appraisal, we are assuming the building is in compliance; however, we recommend an architectural inspection of the building to determine compliance or requirements for compliance. We assume no responsibility for the cost ofsuch determination and our appraisal is subject to revision ifthe building is not in compliance. Extraordinary Assumptions-Defi nitions : An assumption, directly related to a appraiser's opinions or conclusions. specific assignment, which, if found to be false could alter the BLAZEJACK & COMPANY ASSUMPTIONS AND LIMITING CONDITIONS 250 EASEMENT-W25thStreet 201315 REPORT Extraordinary Assumptions We have made our estimation of the value of the subtenanean easement taking in consideration the fact that Mr. Richard Saltrick indicated that the City of Miami Beach proposes a subterranean easement so that the owner can build over the easement. If the proposed construction considers adifferent easement and limitations, the value conclusions could be affected, and I reserve the right to change the value conclusions. I also made the extraordinary assumption that the building will be completed in compliance with all applicable building codes and in a workman-like manner typical ofconstruction standards currently considered acceptable. BLAZEJACK & COMPANY ASSUMPTIONS AND LIMITING CONDITIONS 251