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20150902 SM3r--. -L@ --/-, 1915 " 2015 MIAMIBEACH City Gommission Meeting SUPPLEMENTAL MATERIAL 3 City Hall, Commission Chambers, 3rd Floor, 1700 Gonvention Center Drive September 2,2015 Mayor Philip Levine Vice-Mayor Edward L. Tobin Commissioner Michael Grieco Commissioner Joy Malakoff Commissioner Micky Steinberg Commissioner Deede Weithorn Commissioner Jonah Wolfson City Manager Jimmy L. Morales City Attorney Raul J. Aguila City Clerk Rafael E. Granado Vrsff us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. ATTENTION ALL LOBBYISTS Chapter 2, Article Vll, 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 Gity Gommission, any Gity 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 R7 - Resolutions R7M A Resolution Accepting The Recommendation Of The City Manager Pertaining To The Ranking Of Proposals Pursuant To Request For Proposals No. 2015-146-YG (The RFP), For Parking Attendants For City Parking Garages; And Authorizing The Administration To Enter lnto Negotiations With The Top-Ranked Proposer, SP Plus Corporation; Should The Administration Not Be Successful ln Negotiating An Agreement With SP Plus Corporation, Authorizing The Administration To lssue A New RFP;And FurtherAuthorizing The MayorAnd City Clerk To Execute An Agreement Upon Conclusion Of Successful Negotiations By The Administration. (ProcuremenUParking) (Revised Memorandum & Resolution) 1 Supplemental Agenda, September 2, 201 5 R7O A Resolution Approving And Authorizing The Mayor And City Clerk To Execute Change Order No. 5 To The Design-Build Agreement With Bergeron Land Development, lnc., Dated April 30, 2014 (The Agreement), Related To The Disposal Of Soils From The West Avenue Neighborhood Project, Provide Rental Generators To Reduce Flooding And Establish Street Lighting Standards For The City, Further lncreasing The Cost Of The Agreement By $2,000,000. (Public Works) (Attachment) R7T A Resolution Pursuant To Section 82-37(a)(2) Of The City Code, Setting A Public Hearing To ConsiderApproving, On Second Reading, The Transfer, Via An Air Rights EasementAgreement, To Betsy Ross Owner, LLC, The Property ldentified ln Exhibit "A," For The Construction Of Bridge Over The Ocean Court Alley Between The Carlton And The Betsy Hotels; Containing Approximately 18'1.66 Square Feet ln TotalArea; FurtherWaiving, By 5/7th Vote, The Competitive Bidding Requirements Of Section 82-39(b) Of The City Code, Finding That The Public lnterest Would Be Served By Waiving Such Condition; Directing The ltem Be Sent To The Next Finance And Citywide Projects Committee Meeting With A Copy Of The Updated Appraisal; And Directing The City's Planning Department To Prepare A Planning Analysis Pursuant To Section 82-38 Of The City Code. (Public Works) (Attachment) 2 COMMISSION ITEM SUMMARY Condensed Title: A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Accepting The Recommendation Of The City Manager Pertaining To The Ranking of Proposals Pursuant to Request for Pro RFP) No. 2015-146-YG for Parkins Attendants for City Parking Ga Item Summary/Recommendation : Ensure Comorehensive Mobi All Modes Throuohout The C Data Environmental Scan, etc: N/A The Administration issued RFP 2015-146-YG to seek the proposals from qualified contractors to provide Parking Attendants for City Parking Garages. The RFP was approved for issuance by the City Commission on April 15,2015. The RFP was released on April 21,2015. A pre-proposal conference to provide information to the proposers submitting a response was held on April 27, 2015. On July 10,2015, the City received proposals from: EYSA USA, LLC., LAZ Florida Parking, LLC., Republic Parking System, lnc., and SP Plus Corporation. On August 3,2015, the Evaluation Committee appointed by the City Manager convened to considerthe responsive proposals received. The Committee was instructed to score and rank the sole proposal received pursuant to the evaluation criteria established in the RFP. The results of the evaluation committee process were presented to the City Manager for his recommendation to the City Commission. The City Manager considered all the submissions and the results of the Evaluation Committee Process. The City Manager also considered that, subsequent to the Evaluation Committee process, the proposal received by Republic Parking Systems was deemed to be non-responsive following a further review of responsiveness by the City Attorney and was disqualified for failure to meet the minimum requirements. After reviewing all the submissions and the results of the evaluation process, the City Manager recommends that the Mayor and City Commission authorize the Administration to enter into negotiations with SP Plus Corporation; and, further authorize the Mayor and City Clerk to with the firm upon conclusion of negotiations. The City Manager notes that SP Plus is the City's current contractor for parking attendant services. According to staff, SP Plus has performed well over the 4 year term of the current agreement. The Administration recommends that the Mayor and City Commission approve the resolution accepting the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Proposals No. 2015-146-YG (the RFP), for Parking Attendants for City Parking Garages. RECOMMENDATION the resolution. Board Recommendation: Financial !nformation : Source of Funds: OBPI Amount Account 1 The annual cost associated with the parking attendant services is subject to the funds availability approved throuoh the Citv's budoetinq process Total Financial lmpact Summary: Alex Denis, Extension 6641 t City Manager E MIAnAIBEACH 1 5-1 46-YG Parking Attendants AGENDA ams ?2-53 g MIAMI BEACH Cify of Miomi Beoch, ,I700 Convenlion Center Drive, Miomi Beoch, Florido 33,l39, www.miomibeochll.gov COMMISSION MEMORANDUM To: Mayor Philip Levine and Members FRoM: Jimmy L. Morales, City Manager DATE: September 2,2015 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAM! BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS NO. 2015-146-YG (THE RFP), FOR PARKING ATTENDANTS FOR CITY PARKING GARAGES. ADMINISTRATION RECOMM EN DATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED Ensure Comprehensive Mobility Addressing All Modes Throughout The City FUND!NG The annual cost associated with the parking attendant services is subject to the funds availability approved through the City's budgeting process. BACKGROUND On llrtay 5, 2011, the Mayor and City Commission awarded RFP 17'10111 for Parking Attendants for City Parking Garages to SP Plus Municipal Services, a division of Standard Parking Corporation. The start date of the initial three (3) year term was August 16,2011, and expired August 15, 2014. The first of two one (1) year renewal options with SP Plus Municipal Services was exercised and commenced on August 16, 2014 and will expire on August 15, 2015. On July 30, 2014, the Mayor and Commission considered and approved an item referring to the Finance and Citywide Projects Committee discussion on the management agreement with SP Plus Municipal Services, a division of Standard Parking Corporation, for parking attendants. Specifically; the referral requested a decision on: (1) Not exercising the City's option to renew the agreement; and (2) Extending the Agreement on a month{o-month basis; and (3) lssuing a new RFP (Request for Proposals) for parking attendants for the City's parking garages. On February 2, 2015, the FCWPC discussed this item (ltem No. 3 on the Agenda) and recommended the issuance of an RFP for Parking Attendants for the City's Parking System. The pursuit of a formal procurement process for Parking Attendants for the City's Parking System is anticipated to yield cost savings through a combination of reduced personnel costs and gated revenue control system technology enhancements, including a central monitoring station. A central monitoring approach is anticipated to yield a 40o/o reduction in cashier/attendant hours which translates to an equivalent cost savings through the attached RFP. The Administration desires to seek proposals from fully qualified firms interested in partnering with the City to provide parking attendants for City parking garages. 4 Commission Memorandum - RFP 2015-146-YG for Parking Attendants for City Parking Garages September 2,2015 Page2 RFP PROCESS On April 15, 2015, the City Commission approved to issue the Request for Proposals (RFP) No. 2015-146-YG Parking Attendants for City Parking Garages. On April 21 , 2015, the RFP was issued. A voluntary pre-proposal conference to provide information to the proposers submitting a response was held on April 27,2015. RFP responses were due and received on July 10,2015. The City received a total of four (4) proposals. The City received proposals from the following firms: EYSA USA, LLC LAZ Florida Parking, LLC Republic Parking System, lnc. SP Plus Corporation On July 6,2015, the City Managervia Letterto Commission (LTC) No.275-2015 appointed an Evaluation Committee (the "Committee"), consisting of the following individuals:. Monica Beltran, Assistant Director, Parking Department, City of Miami Beach. Georgie Echert, Assistant Director, Finance Department, City of Miami Beach. Laura Franco-Rubines, Assistant lnternal Auditor, lnternal Audit Department, City of Miami Beacho Nawaz Gilani, Neighborhood Leadership Academy, Residento Madeleine Romanello, Transportation, Parking & Bicycle-Pedestrian Facilities Committee, Resident Alternates:. Leif Bertrand, Neighborhood Leadership Academy, Resident. William Hahne, Transportation, Parking & Bicycle-Pedestrian Facilities Committee, Resident. Jim Sutter, lnternal Auditor, lnternal Audit Department, City of Miami Beach; and On July 30,2015, the City Manager via Letter to Commission (LTC) No. 307-2015, revised the Evaluation Committee (the "Committee"), as follows:o Monica Beltran, Assistant Director, Parking Department, City of Miami Beach, was unable to participate as an evaluation committee member and was therefore removed.. Rocio Alba, Administrative Service Manager, Parking Department, City of Miami Beach, was added. The Committee convened on August 3,2015 to consider proposals received and interview the proposers. The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee also provided general information on the scope of services, references, and a copy of each proposal. Additionally, the Committee engaged in a question and answer session after the presentation of each proposer. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the ranking of proposers as indicated in the table below. 5 Georglo Rrnkind Laura Franco-Madeleine LOW AOOREGATTOangaa 61 43 I 71 7A 63 1 20 A7 Fhridr Prrtrid I I C 7e 3 9t 3 91 2 '12 83 2 85 e2 80 3 88 86 ),a8 2 m Commission Memorandum - RFP 2015-146-YG for Parking Attendants for City Parking Garages September 2,2015 Page 3 Managemnt Alomble Tobl Points Awsrded' rSA USA LLC t0 r Prrhno Svstem lnc- 117 276 00 l0 MANAGER'S DUE DILIGENCE & REGOMMENDATION The City Manager considered all the submissions and the results of the Evaluation Committee Process. The City Manager also considered that, subsequent to the Evaluation Committee process, the proposal received by Republic Parking Systems was deemed to be non- responsive following a further review of responsiveness by the City Attorney and was disqualified for failure to meet the minimum requirements. With Republic disqualified from the process, the Evaluation Committee's scoring results in revised rankings as follows: ' RIP lzolllla&Yo i$0n!..i.i Aend.il. loi th! ClYt Partlng, ',', : Oan!0 .,. r Laura FInco. The RFP outlined a cost-plus model for Parking Attendant Services. The City dictates scheduling of hours and deployment of attendants for city parking facilities and as a result manages related expenses. Payment for services rendered is composed of Reimbursable Expenses, including direct labor cost which is set by the Living Wage Ordinance, and a Management Fee. Reimbursable Expenses: The Contractor submits a proposed Reimbursable Expense Budget to the City 30 days prior to the commencement of each contract year and both agree on a budget for reimbursable expenses. On a monthly basis, the Contractor submits a monthly expense report, certified by an officer of the Contractor and in the format specified by the City. This report serves as a summary of the monthly reimbursable expenses, and as a monthly invoice. Only expenses for which proof of payment is provided are reimbursed. The following services are required and will be included as Reimbursable Expenses: . Project Manager Annual Salary - Proposer shall provide a full-time on-site Project Manager with experience handling the type of services requested by the City, who will have full authority to act on behalf of the firm. The Project Manager shall be scheduled at the sole and absolute discretion of the City and shall be available to respond to requests from the City, on an as needed basis, 24 hours a day/seven days a week. Project Manager's salary shall be approved by the City and should be within the range of $55,000 to $65,000. 6 Commission Memorandum - RFP 2015-146-YG for Parking Attendants for City Parking Garages September 2,2015 Page 4 . Employer responsibility portion of Social Security and Medicare taxes paid by the contractor from wages paid to the Project Manager, Attendants I and Attendants ll assigned and working at the City under this contract. These must be itemized by employee. o Any training the City deems relevant and appropriate in its sole discretion. o Motorist Assistance Program (MAP) which includes but is not limited to flat tire assistance/repair, lock-out; fuel; battery jump start, and/or towing of the vehicle to a service facility. . Cardio Pulmonary Resuscitation (CPR) Certification for all contract personnel. o Mystery Shopper Reporting - An independent third party to perform a minimum of ten (10) "Shopper" reports per month, system-wide. Shopper reports must specify that these are actual customers and must be documented visits to one of the facilities where labor is provided. Telephone calls for information or visits/interaction with city staff is not permitted. . Other expenses requested by the City for items not included in the management fee, including (but not limited to): uniforms; tools, equipment, and dedicated vehicle; gas and maintenance for dedicated vehicle; signs. SP Plus proposed an annual Management Fee of $447,276 or $37,273, monthly. The following expenses are included in the Management Fee: Profit and overhead costs; employee burdens* other than those specifically included under reimbursable expenses; general and administrative expenses; office rent and utilities; telephone and internet services; employee training, including, but not limited to, customer service, and/or any other training, as required for employees to perform the duties and responsibilities of their corresponding employment positions; office supplies; general and administrative costs including, but not limited to, salaries, benefits, bonuses for office personnel and management; depreciation on equipment; licenses and permits; advertising; taxes, except the employer payroll responsibility for Social Security and Medicaid Taxes; insurances including, but not limited to, workmen's compensation, vehicle insurance, liability insurance, unemployment/re-employment, health and life insurance; charitable and other contributions; travel, meals and entertainment; public relations, gifts, dues and memberships; any penalties, assessments or fines issued by any regulatory agency, court, or governmental entity including the City; employee social functions; employee severance pay; fringe benefits not earned or accrued during the time of this agreement or while employee has worked for the operator in other facilities other than City facilities; chargebacks resulting from the failure to apply controls as described in the parking procedures manual; and any other cost not included in the approved reimbursable list. * Employee Burden is defined as the actual or accrued cost by an organization to have an employee, aside from the salary the employee eams. Labor burden costs include benefits that a company must, or chooses to, pay for employees included on their payroll. These costs include, but are not limited to, payroll taxes, pension costs and/or contributions, health insurance, eye and dental insurance, accrued leave, allocations of general liability and workers compensafion nsks and actual premiums, and any other benefits and/or cosfs, whether mandated or voluntary, that the company incurs for having employees whether by the individual or by the aggregate employee base. After reviewing all the submissions and the results of the evaluation process, the City Manager recommends that the Mayor and City Commission authorize the Administration to enter into negotiations with SP Plus Corporation. ln making this recommendation, the City Manager has 7 Commission Memorandum - RFP 2015-146-YG for Parking Attendants for City Parking Garages September 2,2015 Page 5 also considered Section 2-369, of the Code of the City of Miami Beach, which states that, in the award of contracts, the following shall be considered: (1) The ability, capacity and skill of the bidder to perform the contract. (2) Whether the bidder can perform the contract within the time specified, without delay or interference. (3) The character, integrity, reputation, judgment, experience and efficiency of the bidder. (4) The quality of per-formance of previous contracts. (5) The previous and existing compliance by the bidder with laws and ordinances relating to the contract. The City Manager notes that SP Plus is the City's current contractor for parking attendant services. According to staff, SP Plus has performed well over the 4 year term of the current agreement. CONCLUSION The Administration recommends that the Mayor and City Commission approve the resolution accepting the recommendation of the City Manager pertaining to the ranking of proposals, pursuant to Request for Proposals No. 2015-146-YG (the RFP), for Parking Attendants for City Parking caffis. JLM/MT IKGYI SF/AD/YG T:\AGENDA\201S\SeptembeAPROCUREMENT\RFP 2015-146-YG Parking Attendants - Memo.doc 8 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS PURSUANT TO REQUEST FOR PROPOSALS NO. 2015-146-yG (THE RFP), FOR PARKING ATTENDANTS FOR CITY PARKING GARAGES; AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP-RANKED PROPOSER, SP PLUS CORPORATION; SHOULD THE ADMINISTRATION NOT BE SUCCESSFUL !N NEGOTIATING AN AGREEMENT WITH SP PLUS CORPORATION, AUTHORIZING THE ADMINISTRATION TO ISSUE A NEW RFP; AND FURTHER AUTHORIZING THE MAYOR AND CITY GLERK TO EXECUTE AN AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, Request for Proposals No. 2015-146-YG was issued on April 21, 2015 with an opening date of July 10,2015 (the RFP); and WHEREAS, a pre-proposal conference was held on April27,2015; and WHEREAS, the City received four (4) proposals from EYSA USA, LLC., LAZ Florida Parking, LLC., Republic Parking System, lnc., and SP Plus Corporation; and WHEREAS, on August3,2015 an Evaluation Committee appointed by the City Manager convened to consider all proposals; and WHEREAS, the Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law; general information on the scope of services, references, and a copy of the proposal; and engaged in a question and answer session after the presentation of each proposer; and WHEREAS, the Committee was instructed to score and rank the proposals pursuant to the evaluation criteria established in the RFP; and WHEREAS, the Committee's ranking was as follows: SP Plus Corporation, top-ranked; Republic Parking System, lnc., second highest ranked firm; LAZ Florida Parking, LLC, third highest ranked; and EYSA USA, LLC, fourth highest ranked; and WHEREAS, Republic Parking System, lnc., was deemed non-responsive to the RFP's Minimum Requirements; and WHEREAS, after reviewing all the submissions and the Evaluation Committee's rankings, the City Manager exercised his due diligence and is recommending that the Administration be authorized to enter into negotiations with SP Plus Corporation. 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 accept the recommendation of the City Manager pertaining to the ranking of proposals pursuant to Request for Proposals No.2015-146-YG (the RFP), for Parking 9 Attendants for City Parking Garages; and authorize the Administration to enter into negotiations with the top-ranked proposer, SP Plus Corporation; should the Administration not be successful in negotiating an agreement with SP Plus Corporation, authorize the Administration to issue a new RFP; and further authorize the Mayor and City Clerk to execute an agreement upon conclusion of successful negotiations by the Administration. PASSED AND ADOPTED this day of 2015. ATTEST: Rafael E. Granado, City Clerk Philip Levine, Mayor T:\AGENDA\201S\September\PROCUREMENT\RFP 2015-146-YG Parking Aftendants - Resolution.doc . APPROVED AS TO FORM & LANGUAGE & FOR EXECI,,TION p{,{ [* 1* t-sc' r i - - Cfy&fomey Dote 10 Attachment Agenda ltem R7O Estimated Contaminated Cost Contamination Summary Cost for Contamination Testing on 171h, 14th, 1Oth and 6th Estimated Cost for Haul on 17th & West Ave (Lincoln to 17th) Estimated Cost for Haul on 14th Estimated Cost for Haul on 1Oth Estimated Cost for Haul on 6th & West Ave (Sth to Bth) Estimated Total $22,930.00 $585,060.00 $346,292.07 $94,401.83 $495,535.67 $1,544,219.57 Agenda ltem Date Rlo11 5th Street s1-100 s1-110 s1-120 s1-130 s1-131 s1-132 s1-133 s1-134 s1-135 s1-140 s1-141 s1-150 s1-151 s1-160 s1-161 s1-170 s1-171 s1-180 s1-182 s6-1 s6-2 s6-3 56-4 s6-5 s6-6 s6-7 s6-8 s6-10 s6-11 48" 51-100 to S1-110 48" 51-110 to 51-120 48" 51-120 to 51-130 12" 51-130 to 51-131 12" 51-131 to 51-132 12" 51-132 to 51-133 12" 51-133 to 51-134 12" 51-134 to 51-135 48" 51-140 to 51-142 48" 51-142 to 51-150 48" 51-150 to S1-150 48" 51-150 to S1-170 12" 51-130 to S1-131 24" 51-140 to 51-141 24" 51-150 to S1-151 24" 51-160 to 51-161 24" 51-170 to 51-171 44.4444444 46.33333329 43.66666662 4L.29629626 6.66666666 6.66666666 6.66666666 5.56556666 6.66666666 46.51851847 44.4444444 49,29629625 37.037037 43.48148t44 37.037037 44.4444444 37.037037 37.037037 44.4444444 67.88888882 58.2592592 87.111 11 102 37.037037 74.074074 63.55S55549 69.91 111104 274.9999997 189.7999998 68.88888882 262.222222 259.9999997 451.9999995 23.33333331 24.44444442 24.44444442 74.44444442 24,44444442 133.3333332 484.444444 342,2272219 728.8888882 41.48t48L44 48.59259254 46.22222278 68,74074067 56.88888883 29,6296296 29.6296296 29,6296296 29.6296296 10.66666666 10.66666666 10.66666666 10.66656565 10.66666666 29,5296296 29.6296296 29.6296296 29,5296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 57.77777772 35.85185182 49.77777773 29,6296296 29.6296296 42.37037033 42.17037033 111.11 111 1 103.9999999 29.6296296 100 100 100 100 35 36 36 36 36 100 100 100 100 100 100 100 100 100 100 195 r2t 168 100 100 143 143 375 351 100 708 702 1356 105 110 110 110 110 360 1308 924 1968 140 L64 156 232 L92 L2 12.51 lL.79 1 1.15 5 5 5 5 5 12.56 t2 13.31 10 Ll.74 10 12 10 10 L2 9.4 13 74 10 20 L7 13.2 19.8 14,6 18.6 10 10 9 6 6 6 6 6 10 10 10 10 8 8 8 8 8 1200 125 1 rL79 1 115 180 180 180 180 180 LZs6 1200 1331 1000 L!74 1000 1200 1000 1000 1200 1833 1573 2352 1000 2000 L716 1887.6 7425 5L24,6 1860 7080 7020 72204 630 660 660 660 660 3600 13080 9240 19680 1120 1312 1248 1856 1536 800 800 800 800 288 288 288 288 288 800 800 800 800 800 800 800 800 800 800 1560 968 L344 800 800 Ll44 Lt44 3000 2808 800 5664 5515 10848 840 880 880 880 880 2880 10464 7392 t5744 7L20 t3r2 7248 1856 1536 8 8 8 8 8 8 6 8 8 8 8 o 8 8 8 8 8 8 o 8 8 8 o 8 o 8 6 8 8 4667.525927 209,7777776 8 207.9999998 8 40t.7777774 8 31.11111108 8 32.59259256 8 32.592592s5 8 32.59259256 8 32.59259256 8 106.6666666 8 387.5555552 8 273.7777775 8 583.1111105 8 41.48L48144 8 44.59259254 8 46.222222L8 8 68.74074067 8 s6.88888883 8 3s94.370367 PER DERM WE NEED 7 Samples (see table below) ,ir lt llHBrfllF,r,ll-f;,, F.Iii.2ftHffi rri.1:rmKtr1:,i ':.-."gffi##', ,#ft,fi(f.,illiiliqi:ri l1tl ltrF]ilJlll;eutlll&l , ta(.v-9{w,p.= ',,iffi!,!t!:?; {z(tr}<zljt} zuu lt} <1.{r-rJ 3 1.{fx} to <z.{xx,1 €{X' !6 <2 A{X'5 t 12 10th Street Estlmated Excavation (CY) Estimated Muck (cF) s4-401 54-402 s4-402A s4-403 s4-404 s4-405 s4-406 54-413 s4-420 s4-420A s/.-42r g-422 s4-423 24" RCP 54-401 to 54-402 34" x 53" ERCP 54-402 to S4-402A 34" x 53" ERCP 9-402A to 54-403 24" RCP 54-404 to 54-405 (2) 24' RCP 54-404 to 54-406 (2) 24' RCP 54-406 to 54-413 18" RCP 54-420 to 54-421 18" RCP S4-420A to 54-422 100 100 100 100 100 100 100 100 100 100 100 100 100 208 L75 245 208 344 240 160 64 14 L4 8 8 L2 L2 6 6 9 9 7 6 8 12 7 7 10 6 4 7 7 1400 1400 800 800 1200 1200 600 600 900 900 700 600 800 2496 L2Z5 L715 2080 2064 960 L720 448 800 800 800 800 800 800 800 800 800 800 800 800 800 1664 1400 1960 1664 2752 1920 1280 512 s1.8518518 51.8518518 29.6296296 29.6296296 44.4444444 44.4444444 22.2222222 22.2222222 33.3333333 33.3333333 25.9259759 22,2222222 29.6296296 92.4444/,435 45.37037033 63.51851845 77.03703696 76.44444437 35.55555552 41.48148144 15.59259258 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 6L.62962957 51.8518518 72.59259252 6!.62962957 101.92s92s8 77.L777ttO4 47.40740736 ].8.96296294 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 o 8 8 8 8 889.1851843 472.2962954 PER DERM WE NEED 3 Samples (see table below) l t, i't: 1,, '.' tEYdfnfifi?.' ffig{rorffi f,llv,{S{f ll v{"#s-., liiiiti <2(r,<28,) zlc,, !o <"t.ra{I.}3 1 (rI) h <7 fvYt l.4OO lo <2.8(B s 5 ffiffirffi r,tII,!o- 13 14th Street Estlmated Muck Layer from Geo s2-200 s2-210 s2-211 s2-220 s2-22L s2-222 s2-223 s2-225 s2-230 s2-231 s2-232 s2-24t s2-250 s2-252 s2-260 s2-26r s2-262 s2-265 s2-266 48" 52-200 to Existing PS MH 60" S2-200 to 52-210 24" RCP S2-210 to S2-211 60" RCP 52-210 to 52-220 24" RCP 52-220 to 52-221 14"x23" ERCP 52-220 to 52-222 60" RCP 52-220 to 52-22s 60" RCP S2-225 to 52-230 24"x38" ERCP 52-230 to 52-231 18" RCP S2-230 to 52-241 48" RCP 52-231 to S2-232 29"x45" ERCP 52-232 to 52-250 48" RCP 52-230 to 52-250 48" RCP S2-2s0 to 52-260 14"x23" ERCP 52-260 to 52-262 38"x60" ERCP 52-250 to 52-252 24" RCP 52-260 to 52-261 48" RCP 52-260 to 52-265 48" RCP 52-265 to 52-266 48" RCP 52-266 to 52-270 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 LL4 294 60 2624 64 104 584 264 250 212 288 306 51 288 116 322 80 618 300 444 12 !2 8 10 8 6 5 9.5 13 13 13 6 13 6 9 7 6 11 11 8 72 7 10 6 6 9 9 8 6 12 9 14 10 4 8 7 9 L2 10 1200 1200 800 1000 800 600 s00 950 1300 1300 1300 600 1300 800 900 700 600 1100 1100 9L2 3528 420 26240 384 624 5256 2376 2000 7272 3456 2754 774 2880 464 2s76 560 5562 3600 4440 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 912 2352 480 20992 512 832 4672 2LLT 2000 1696 2304 2448 408 2304 928 2576 640 4944 2400 3552 44.4444444 44.4444444 29.6296296 37.037037 29.6296296 22.2222222 18.5185185 35.1851851s 48.1481481 48.1481481 48.148148 1 22.2222222 48.1481481 29.6296296 33.3333333 25.9259259 22.2222222 40.7407407 40.7407407 33.77777774 130.666666s 15.55555554 971.8518509 14.2222222r 23.11111109 194.5566665 87.99999991 74.074074 47.11111106 127.9999999 101.9999999 26.44444442 106.6666666 17.18518517 95.4074073L 20.74074072 205.9999998 133.3333332 L64.4444443 29.6296296 29.6296296 29.6296296 29.6296296 79.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 29.6296296 33,77777774 87.11111102 77.77777776 777.48t4807 t8.96296294 30.81481478 173.0370369 78.22222274 74.074074 62.8t487475 8s.33333325 90.66666658 15.1111111 85.33333325 34.37037034 95.4074073r 23.70370368 183.1111109 88.8888888 131.5555554 8 8 5 8 8 8 a 8 8 8 8 d 8 6 5 8 o e 8 8 8 8 8 o 8 8 6 8 a 6 8 8 6 8 8 8 o 3261.777775 2750,518516 PER DERM WE NEED 6 Samples (see table below) :i:;ii i iifitii ii'.'.'19ryoff '-:::.!!1!!! lrfi E!fl+*'ff.r&a4rr';=#J <ia{r,<2r{} :a rIo<l.t{rJ zao Io <1.rt(r,3 1.ff)O to <2.om I {m b <2 a{r,5 14 Sarmiento, Fiorella From: Sent: To: Subject: Mowry, Bruce Tuesday, September 01, 2015 1:37 PM Sarmiento, Fiorella; Fink, Jay FW:Temporary Pumps This is the one we are looking for that gives new pump pricing. Bruce A. Mowry, Ph.D., P.E. Gity Engineer '1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305-673-7080 ext. 6565 / Cell: 786-759-8941 BruceMowry@MiamiBeachFL.qov We are committed to providing excellent public seNice and safety to all who live, work and play in our vibrant, tropical, historic communit From : Chad Widup [mailto :cwiduo@bergeroninc.com] Sent: Tuesday, October 07,2014 2:46 PM To: Mowry, Bruce Cc: Brian Landis; Nikki Melton Subject: Temporary Pumps Bruce Here is the revised pricing that we discussed yesterday: Monthly rental on pump $ZSOO * 10%(markup) = $8,250/pump/month Fuel delivered S4.S/gal *!2gal/hr.*10%(markup)=$S9.40/hr. that any of the pumps run 5th setup/mobe/demobe Mobe/demobe:Szs0/each + markup Labor/equipment/materials: S3,625.15 + ma rkup 1Oth setup/mobe/demobe Mobe/demobe:5250/each + markup Labor/equipment/materials: 54,000.20 + markup 17th setup/mobe/demobe Mobe/demobe:S250/each + markup La bor/equipment/materia ls:S5,855.20 + markup Summary Pumps 58,250/pump/month Fuel run cost: 559.40 /hr./pump 5th setup: 54,s37.67 1.oth setup: S+,gso.zg 17th setup: So,ggo.zg We will provide meter readings on all the pumps. 15 Thanks Chad Widup, PE Operations Director Bergeron Land Development lnc 79612 SW 69th Place Ft. Lauderdale, Fl 33332 (Office) 9s4-680-6100 (Cell) 954-214-t39t E-Mail - cwid up@ bergeroninc.com t. .: , ." i i-"i ' ,'t'i,,,. .:.',,t..,':\ LA}ID OEYSLOFHE}*" http ://www. be rgero nla nddev.com 16 Memorandum ffiffi$ Date: To: lo: To: From: Subject: l.'lovember 7,2004 Jose Gonzales, P.E. Chief Pollution Control Division Section Chiefs Pollution Control Division PRS Staff B,JI [ltY HJ;'e, I,l; 35i?,1 -=*+- Natural Background $oil Concentrations for the Barrier lslands of MiamiDade County The iable below provides the naturally occurring background concentrations of thirteen inorganic chemicals in soils from the barrier islands of Miami-Dade County. The information was developed through statistical analysis of laboratory results from surficial soil samples obtained at 27 locations atong Miami Beach and the gpoit tstands (see attached Map). Where feasible, samples were obtained from the 0-1 foot interval and the 1-2 feet interval at each location. The listed concentrations represent the Minimum Variance Unbiased Estimate (MVUE) of the mean for each chemical. lf no statistically significant difference (p>0.05) was determined between the two intervals, the datasets were combined and a single MVUE is reported, However, for populations indicating a significant difference with depth, the MVUE for each interval is presented. Natural Background Soll Concentrations for tha Barrier lslands of Miami-Dade County C hem ical Name N atural Eaokoround Concentretion {m,o/ko I 0-2 ft in te rva I Arsenic Alum inum Cadmium lro n Seleniurn *' Zinc S ilve r' Barium Chromium C opper Lead Mercury Nickel 5.2 798.7 0.3 2050 7 <0.5 't3.1 0.4 0-1 ft i*to.rval 1r2 tt intd'rval 8.1 7.9 5 .4' 1 5.0 0.0 54 1.08', 5.9 5.7 2.3', 5.2r 0.026' 0.66* 'Represents censored data. Datasets censored to fit lognormal distribution*' Dala for selenium not analyzed statistically sinco all results wore below ths detection limit 17 uJtutuJ]<gIF Lrl ?-.\3<(u- l'* HlrJ)<(rtrF Hqi.*l!- ui ,,,oDq{(t T tl :ii0 l! J:)<trIL F* utco LLl <(Uts Hsix. 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WARONKER, MAI, SRA CARLOS A. DIEZ,APPRAISER Agenda ltem RJT File # 8215 Date ?'z-ls23 Waronker & Rosen, Inc. Real Estate Appraisers and Consultants Miami-Dade County Offi ce 5730 SW 74th Street, Suite 200 South Miami, Florida 33143 Broward / Palm Beach County Office l0l9l W. Sample Road, Suite 2l l-A Coral Springs, Florida 33065 Lee H. Waronker, MAI, SRA Phone: (305) 665-8890 / Fax: (305) 665-5188 Josh L. Rosen, MAI lee@waronkerandrosen.com www.waronkerandrosen.com josh@waronkerandrosen.com August 31,2015 Mr. Demar Woodson Right of Way Manager City of Miami Beach Public Works Department 1700 Convention Center Drive Miami Beach, FL 33139 Re: Proposed Aerial Easement Ocean Court, Between 1440 Ocean Drive and 1433 Collins Avenue Miami Beach, FL 33139 WRI File No. 8215 Dear Mr. Woodson: We have prepared an appraisal report of the above referenced property for the purpose of estimating the value to the adjoining owner as of August 19, 2015. The value estimated herein is not market value, it is the value solely to the adjoining owner. As part of this analysis, an estimate of the market value of the fee simple interest in the adjoining land was developed. However, this is not the primary focus of the assignment. The terms market value and fee simple interest are defined in the pages ofthis report. This report has been prepared based on the scope of work which is detailed on a following page. The reader of the appraisal is strongly advised to read the scope of work so as to understand the scope of this appraisal. This report is intended for use only by the client and intended users as noted herein. No additional intended users are identified or intended. Use of this report by others is not intended by the appraiser. No one else, or any other entities, should rely on this appraisal other than those noted herein. ll/aronker & Rosen, Inc at Real Estate Appraisers & Consullants 24 Mr. Demar Woodson Right of Way Manager City of Miami Beach Public Works Department August 31,2015 The subject property consists of a proposed aerial easement spanning Ocean Court (a public alley) between l4th and l5th Streets in the City of Miami Beach, Miami-Dade County, FL. The proposed easement would span the 20 foot width of Ocean Court, and is intended to enable construction of a pedestrian bridge connecting the buildings on either side of the easement at the level of the third floor. The adjoining buildings are under common ownership, with frontage on Ocean Drive and Collins Avenue. The Ocean Drive property is currently an operating hotel, and the Collins Avenue property was until recently operating as a separate hotel, but is currently closed and undergoing a major renovation. The easement and pedestrian bridge are proposed in order to enable the integration of the two properties into a single hotel operation. The proposal includes construction of a decorative spherical structure enveloping the pedestrian bridge that has the appearance of a large rubber ball nestled between the buildings. Based on drawings provided by the architect for the renovation, the proposed easement would have a length of 27.75 feet (including the length of the spherical structure from north to south), and a vertical depth of 26.33 feet from the top of the spherical structure to the bottom. The public right-of-way has a width of 20 feet, according to the recorded plat. No survey or legal description of the proposed survey was provided. Therefore, for purposes of this appraisal, the total floor area of the proposed easement is considered to be the length of the spherical volume according to the architect's drawings multiplied by the width of the alley, or 555 sq. ft., and the volume would be 14,615 cubic feet based on the vertical depth indicated in the drawings. Zoning on the sites adjoining the easement on both sides is MXE, Mixed-Use Entertainment District by the city of Miami Beach, FL. The properties on either side of the proposed easement are owned in fee simple by a single owner, through different entities. The Ocean Drive property is currently operating as the Betsy Hotel at 1440 Ocean Drive, a 6l-room 3-story full-service hotel built in 1940. The Collins Avenue property is the Carlton Hotel at 1433 Collins Avenue, which before the renovation was a 67-room 3-story limited-service hotel built in 1937. The owner has owned the Betsy Hotel for many years, but acquired the Carlton Hotel in October 2013 for $19,000,000 through a court- ordered sale of the property resulting from the previous owner's bankruptcy. The owner subsequently obtained approval from the City of Miami Beach Planning Department for a renovation of the Collins Avenue building (the Carlton Hotel). These approvals include partial demolition, renovation and restoration of the existing 3-story structure, construction of a new l- story ground level addition on the north side of the property, a new 4-story ground level addition on the south side of the property and a new l-story rooftop addition. This renovatior,/expansion is now underway. In addition, the owner is proposing to construct a bridge to connect the Carlton Hotel to the Betsy Hotel over the alley as noted above. Proposed alterations to the Betsy are limited to the pedestrian bridge and improvements to the alley. For reference, a copy of a March 19,2014 memo from the City Manager to the Land Use and Development Committee regarding the proposed renovation and easement is reproduced in the Addenda. Waronker & Rosen, Inc. tl Real Estate Appraisers & Consultqnts 25 Mr. Demar Woodson Right of Way Manager City of Miami Beach Public Works Department August 31,2015 According to the City of Miami Beach Planning Department, the owner's proposed renovation and aerial bridge are intended to enable the consolidation of the two properties into a single operation, with a single front desk and an Ocean Drive presence. The former lobby of the Carlton Hotel will be modified (the front desk operation merged with that of the Betsy) and a new restauranVcaf6 is to be built-out on the ground floor with a Collins Avenue presence and outdoor seating. As discussed further in the pages of this report, the adjoining owner stands to receive significant operational and financial benefits from the consolidation of the two hotels, a project that would not be feasible without the pedestrian bridge connecting the buildings. This valuation is based on consideration of those benefits. Vsluotion Methodology Valuations of easements typically employ approaches that begin with an estimate of the market value of the adjoining land. In some cases, discounts are appliedto accountforthe loss of utility due to the fact that construction would not be allowed on the easement as it would be on the adjoining sites. In others, a fee is estimated for a temporary construction easement based on a reasonable rental rate for exclusive use of the land during construction. However, the concept of market value (on which land value estimates would typically be based) is predicated on a competitive open market, and presumes that buyer and seller are both typically motivated (i.e., that neither has an unusual motivation or incentive to buy or sell). The analysis indicates that the proposed easement would provide unique benefits to the owner of the adjoining properties, making it valuable to them to an extent that far exceeds the value of the adjoining land to any other party. For these reasons, the City of Miami Beach has requested a valuation that considers the value of the easement to the adjoining owner. The City is under no requirement to grant easements of this type, and City officials have considered the high cost that would likely be incurred if at some future date it became necessary to re-acquire these easements from the adjoining owners, especially in light of the fact that historically, valuation of easements for public acquisition has been based on the loss in value to the burdened property. The financial benefits derived from the consolidation of the hotels that the easement would enable are very difficult to quantify without detailed financial information on the current operating performance of the Besty Hotel, the historical operating performance of the Carlton Hotel, and the renovation project currently underway. However, the analysis will assess in general terms how the consolidation would enhance the potential operating performance of hotels on the adjoining sites, and estimate a reasonable range of how much these potential enhancements would be likely to increase the value of the underlying land, based on analysis of market conditions in the South Beach hotel and land development markets. lVaronker & Rosen, Inc. & Real Estate Apprakers & Consultants 26 Mr. Demar Woodson Right of Way Manager City of Miami Beach Public Works Department August 31,2015 In order to prepare the analysis, in connection with a previous appraisal, we were supplied with a set of architectural drawings for the proposed renovation, by Miami-based architectural firm Shulman & Associates. The drawings are dated December 18, 2013. No survey or legal description for the easement was provided (though the architect's drawings do include copies of surveys of the adjoining sites). For purposes of the analysis, the sizes and specifications of the proposed easement were taken by the appraisers from the architectural drawings for the proposed pedestrian bridge. Any deviation from the information supplied and assumptions used herein will likely result in a change of value. As a result of our investigation, it is our opinion that the value of the proposed aerial easement to the adjoining owner as of August 19,2015, based on the methodology described herein, is in the amount of TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($2,100,000) The above value estimate does not consider any loss in value to the parent tract (that being the entire segment of Ocean Court, the public right-of-way over which the proposed easement is located). This appraisal assumes that the proposed easement is granted and recorded in the public records as proposed and valued herein, with physical dimensions and location matching those in the architectural drawings provided. Very truly yours, State-Certified General Real Estate Appraiser License No. RZl62l62 State-Certified General Real Estate Appraiser License No. R23420 Lee H. Waronker, MAI, SRA Waronker & Rosen, Inc. & Real Estate Appraisers & Consultants 27 Table of Contents LETTER oF TRANSMITTAL Tanm, op CoNrBNrs ScoproF WoRK CERTIFICATIoN GPNERaI ASSUMPTIoNS AND LIMI,INc CoNoIuoNs InrnooucttoN SUIT,TTTIaRy oF PERTTNENT DATA MIAMI.DADE CoUNTY MAP PLATMAP SURvEY Sunvr,v Arzuar- PHoToGRAPHS SITE PLAN FoR PRoPoSED RENovATIoN STTB PI.aN FoR PRoPOSED RENoVATIoN DETAIL oF PEDESTRIAN BRIDGE DETAIL OF PEDESTRIAN BRIDGE RENDERING oF PRoPoSED PEDESTRIAN BRIDGE SusDcT PHoToGRAPHS AppnarsBn QuALrFrcATroNS DESCRIPTIoN & ANALYSES PURPOSE OF THE APPRAISAL CLIENT, INTENDED USERAND USE oF TITT AppReIseL DEFTNITION oF RTAL PRopgRTy INTEREST APPRAISED DEFTNITIoN oF MARKET VALUE L0CATIoN aNo AoonEss LEGAL DESCRIPTIoN OwNBR oF RECoRD HISTORY oF THE SusIEcT PRoPERTY SIIB Dara ZoNTNG FLooD ZONE REAL ESTATE ASSESSMENT AND TAXES NEIGHBoRHoon Ovp,Rvlpw Supply AND DEMAND EXPoSURETIME TYPICAL PURCHASER oF TIIE SUBJECT HIGIDST AND BEST USE APPRAISAL PROCESS CosT APPROACH INCOME CAPITALIZATION APPROACH SALES CoMPARISoN APPRoACH RECoNCILIATIoN oF VALUE ADDENDA CouNTy AREA DESCRIPTIoN FLooD ZoNE MAP ADDITIoNALDATA I 5 6 8 l0 t2 t3 t4 l5 t6 17 18 t9 20 2t 22 23 24 30 34 35 35 35 36 37 37 38 38 39 40 40 4t 43 44 47 47 48 49 50 5l 52 74 75 76 76 76 ll/aronker & Rosen, Inc. & Real Estate Appraisers & Consultanls 28 Scope of Work The appraisal problem herein is to estimate the value of a proposed aerial easement over a public alleyway intended to allow construction of a pedestrian bridge connecting existing hotel buildings on either side of the easement (which are under common ownership), but not restricting continued use of the alley as a public right-of-way. The analysis indicates that the proposed pedestrian bridge would provide unique benefits to the owner of the adjoining properties, making it valuable to them in ways that it would not be to any other party. For this reason, the City of Miami Beach has requested a valuation that considers the enhancement in the value of the underlying land to the adjoining owner. The proposed easement would enable the owner of the adjoining hotels to consolidate the separate properties into a single hotel operation, with a single front desk and an Ocean Drive presence. Hotels located on Ocean Drive typically achieve higher room rates than those on Collins Avenue, and consequently achieve higher values. [ntegration of the Collins Avenue building into an Ocean Drive hotel would enable the Collins Avenue property to achieve higher revenues than are possible without integration, thereby raising the land value of the Collins parcel. This valuation takes the approach of estimating the impact that the easement would have on the market value of the adjoining land as a result of the ability to develop the site as a combined hotel property with an Ocean Drive presence. The valuation methodology requires separate estimates of the market value of the parcels on either side of the easement. Then, an estimate is made of how much the value of the inferior Collins Avenue parcel would be increased as a result of being connected to the superior Ocean Drive parcel by way of the easement. Finally, the reasonableness of this estimate is tested through a feasibility land cost model that considers typical parameters for the development of hypothetical hotel projects on the parcels in question. The model indicates the feasibility land cost, which is the highest price that a developer would be willing to pay based on a set of reasonable (market-derived) assumptions about the development costs and market value of a typical project. These indications provide a check on the reasonableness of the estimate of the increase in the value of the adjoining land that would result from the easement. All appraisals begin by identifying the appraisal problem. Data on the subject property can be derived from various sources including but not limited to, the property owner, the county property appraiser's office, recorded plats and surveys. When possible, more than one source is utilized to confirm data and the data sources are acknowledged. Land size is based on surveys (when available), public records and recorded plats. Land measurements are not performed. Valued herein is vacant land which can be valued by the following methods: 1. Sales Comparison Approach 2. Market Extraction 3. Allocation 4. Land Residual 5. Ground Rent Capitalization 6. SubdivisionAnalysis lYaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 29 The sales comparison approach was used herein and was considered the most applicable method in the valuation of the subject property. A search was performed for the sale of properties considered comparable to the subject property. Research of comparable sales and market data include, but is not limited to using the followingdata sources: CoStar Imapp Newspaper clippings Board of Realtors' Multiple Listing Service National Multiple Listing Service Loopnet.com Comparable sales are inspected and the transactional information is reported. Sale prices are from public records and are typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent, or closing attorney. All information is analyzed in processing the appraisal report and as support for the estimated value. The scope of work for this assignment has been described above and is to be typical for an assignment of the nature of the subject appraisal problem. lfiaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 30 Certification The undersigned does hereby certify that, to the best of my knowledge and beliefi l. The statements of fact contained in this report are true and correct. 2. 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. 3. I 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. 4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. My compensation 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 occulrence ofa subsequent event directly related to the intended use ofthis appraisal. 7. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the following requirements. . Uniform Standards of Professional Appraisal Practice (USPAP) ' The Code of Professional Ethics and Standards of Professional Practice of the Appraisal [nstitute. The State of Florida requirements for state-certified appraisers I have complied with the USPAP Competency Rule. This appraisal report sets forth all of the limiting conditions imposed by the terms of this assignment or by the undersigned affecting the analyses, opinions and conclusions contained in this report. 10. No one provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Additionally, it is subject to review by the state of Florida relating to review by the real estate appraisal subcommittee of the Florida Real Estate Commission. 12. As of the date of this report Lee H. Waronker, MAI, SRA has completed the continuing education program of the Appraisal Institute. As of the date of this report, Carlos Diez has completed the Standard and Ethics Education Requirements for Candidates of the Appraisal Institute. I, Lee H. Waronker, MAI, SRA have made a personal inspection of the property that is the subject of this report. 8. 9. 13. 14. Waronker & Rosen, Inc & Real Estate Appraisers & Consultants 31 15. 16. I, Carlos Diez have made a personal inspection of the property that is the subject of this report. Waronker & Rosen, Inc. have previously performed an appraisal on the subject property in the past three years. We were not then, and are not now involved with the management, leasing, disposition, or any similar service regarding the subject property in the past three years. State-Certified General Real Estate Appraiser License No. RZl62l62 State-Certified General Real Estate Appraiser License No. R23420 Date of Reparl Aueust 3 l. 2015 Lee H. Waronker, MAI, SRA Waronker & Rosen, Inc. ta Real Estate Appraisers & Consultants 32 General Assumptions and Limiting Conditions This appraisal report has been made with the following general assumptions: l. No responsibility is assumed for the legal description or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information fumished by others is believed to be reliable but, no warranty is given for its accuracy. 5. All engineering studies are assumed to be correct. Any plot plans or illustrative material in this report are included only to help the reader visualize the property. 6. [t is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering that may be required to discover them. The values estimated herein are subject to typical inspections such as roof, structural, and termite, if applicable. 7. It is assumed that the property is in full compliance with all applicable federal, state and local environmental regulations and laws unless the lack of compliance is stated, described and considered in the appraisal. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a non-conformity has been identified, described and considered in the appraisal. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and considered in the appraisal. I I . Unless otherwise stated in this report, the existenc e of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presences of substances such as asbestos, ureaformaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. lVarunker & Rosen, Inc & Real Estate Appraisers & Consultants 10 33 12. 13. 15. 16. 14. The physical condition of the improvements, if any, described herein was based on visual inspection. No liability is assumed for the soundness of structural members, since no engineering tests were made of same. Neither all nor any part of this appraisal report shall be disseminated to the general public using the appraiser's name or appraisal designation, without prior written consent of the appraisers signing this appraisal report. Authorization is not allowed for the out-of-context quoting from, or partial reprinting of, this appraisal report. By reason of the report, there is no requirement to testify with reference to the property herein appraised, unless arrangements have been previously made. The reader should be advised that our employment was not contingent on the appraisal providing a minimum valuation, a specific calculation or the approval of a loan. Additionally, we have complied with the USPAP Competency Rule. Limiling Conditions: l. The allocation of total value between land and improvements applies only under the described utilization. The separate valuations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. 2. The Americans with Disability Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the requirements of the ADA. It is possible that a compliance survey of the property and a detailed analyses of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the act. If so, this fact could have a negative impact upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property. Waronker & Rosen, Inc. qt Real Estate Appraisers & Consultants 11 34 Descriptlon and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL lntroduction ll/aronker & Rosen, Inc. ll Real Estate Appraisers & Consultants t2 35 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Summary of Pertinent Data Location: The subject property consists of a proposed aerial easement spanning Ocean Court (a public alley) between 14th and l5th Streets., Miami Beach, Miami-Dade FL Address: Between 1440 Ocean Drive and 1433 Collins Avenue, Miami Beach, FL33139 Type of Use: Proposed aerial easement Zoning: MXE, Mixed-Use Entertainment District by the city of Miami Beach, FL Census Tract: 43.03 Flood Zone: AE (Map 12086C0317L) Land Area (of adjoining parcels): Ocean Drive Parcel: 14,537 square feet (0.33 acres) Collins Avenue Parcel: 21,948 square feet (0.50 acres) Value by Cost Approach: Not applicable Value by Income Capitalization Approach: Not applicable Value by Sales Comparison Approach: $2,100,000* *Value of the proposed easement to the adjoining owner, based on the estimoted increase in the market volue of the adjoining land that would occur as a result of the easement. Date of Valuation: Date of Report: August 19,2015 August 31,2015 lVaronker & Rosen, Inc & Real Estate Appraisers & Consultants 13 36 Description and Analy ses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Miami-Dade County Map The Evugtady sw 210th sr SW 232nd St Prirteton, 997 AtlanlicOcean Virginir Kc1 .Naranlasw 264rh st --_99/ ,./ Biscayne ky f krlirlrr Ker s Blscayne National Park sw 296rh Sr a€ N{ J Hd0ai lshnds Strota nia aorlh . rlnrv r!: -l-.::*948 MrAr\,fl-D sA mn s1 .xi',ojrrfl., Elorkla City ll/qronker & Rosen, Inc. za Real Estate Appraisers & Consultants I4 37 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Plat Map Io7ml lprsl I ,I.fl I ImrlI ,:trts, I lse fSBl I r"_al lpsP I 1 -*l ffit[ .glrg ?*o'to II pesF I ,ltr, I iFll----l--l I i pa# i .o1Ei i. [!Itms. t 'll .q,' FffJ lo1}tsr it ,1ll{l _ -,1080 lir . -*-0960- . _. - -,r.*,_I 150 10I0- "n l"/ t'ooor L! :a E,,l ,, a' *r/_Jn=i- 9r .{ Ei-' I .::. to30 ,rtH, I OaO -.r*, I u !''HSr ir-d-il I#lmB r1200 Ji?'?pp1 E,IqIE ;^t f;*I$ Ifi21 I:ll *91T, , oo'$6Y. s qt&U I ' I l#i"j !f) -,0tM{fJS I la' ssqs{AdR* I ItJffi.r- fc8 mP a , t 'a!a&,'.rl l-ffi"ffi .{u),ss,I -,8t8t t-i[-ru )010 '* tJ ii r-; l, Lq-'Jj psr, ir{Fh f- t o581 -t-,i \i o?y I j-- !,..1- wl li 0ry ta x$g ffq.,i.I 'r 0010 (347Ac)l/,;lrq 0m -2q-_ooQr st op oEp pgF :Y,.,!,,i,1-,,q| r r-r '-- $!rt;irfr,,rr07!b (E& ,taIBl9,o xb ct,I b60- ffxI 0610 m?! -3e ,991 0?r 0001 . o.P ,s9:, ..--r. -' +r i l-,4I-t : t.s€r 1iffi lllft'I rL-ri-lile$P-1 :l W *--P 6ao Waronker & Rosen, Inc ll Real Estate Appraisers & Consultants 15 38 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL ror c Survey (Ocean Drive Parcel) Eryg[Htu;*a. d-rlr rY a-t..r0llid a{r{E I / ail-Suw*/ ,iltca+", / 1.qr!,!{ ttltll ,.*.tr' ,) '/tr t7, a ,tll1 ,'l 'l l ,lqrr, ,oA-'i j 4tE1_il,F,lTd'rTit ir6ii ;:l ,t I UF o I a o et lrtt J6cl -1* ,f'*ll1 lVaronker & Rosen, Inc & Real Estate Appraisers & Consullants 16 39 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL -, I I Survey (Collins Avenue Parcel) *"*,i!&1.1&'fo,* " .E i"*.tr I @.-ttl -- N &-\ait-- NB-\t&la_- .* R-rnlr,rqv.rmt-- _fuYE II r' tt o. r.o'If ,1illm#. ----{ ,, Waronker & Rosen, Inc & Real Estate Appraisers & Consultants 17 40 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Aerial Photographs ll/aronker & Rosen, Inc. €, Real Estate Appraisers & Consultants t8 41 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beqch, FL Site Plan for Proposed Renovation I -*'* $trPrlct ,,1 o Tffso m4, rRofcr $E - c{rra HorE Note: circular shape over Ocean Court denotes location of proposed easement I II '*.ffi-L r{* lYaronker & Rosen, Inc tl Real Estate Appraisers & Consultants 19 42 Description and Analy ses Proposed Aerial Easement, Ocean CL, Miami Beach, FL Site Plan for Proposed Renovation (Angled 3D View) 'i,. r' t.- ,o)ot t oi ,t ,t\L \.\'--' \\ ",,n, .\ llqronker & Rosen, Inc. $ Reol Estate Appraisers & Consultqnts 20 43 D"t"rUttr" r"d A", Detail of Pedestrian Bridge (Plan View) Note: Betsy Hotel (Ocean Drive parcel) on right, Carlton Hotel (Collins parcel) on left -t-j-\ I I I I I I I I --J r I Ii I I Waronker & Rosen, Inc. ta Real Estate Appraisers & Consultants 21 44 D"t"rtpttr" t"d Aru Detail of Pedestrian Bridge (Elevation View) LOCATION OF BRIOGE WITHIN SPHERICAL VOLUME a\ METAL MESH RAILING 42'AEOVE FLOOR FINISH ELEVATION Note: Betsy Hotel (Ocean Drive parcel) on left, Carlton Hotel (Collins parcel) on right @ bioN lYaronker & Rosen, Inc. & Real Estate Appraisers & Consultants "r', 45 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Rendering of Proposed Pedestrian Bridge I i:,,,.jfd -*L4.'a.tr " .ri, i"..i*i.ti1 ijjii".,i ri..id. .lliiYii;i: . ; Rendering looking south from intersection of Ocean Court and l4th Place, just north of easement location. Note: rendering reflects proposed rooftop addition and l-story ground floor addition (in foreground, on right) to Carlton Hotel. Betsy Hotel is on left. Waronker & Rosen, Inc. $ Real Estate Appraisers & Consultants 23 46 Description and Analyses Proposed Aerial Easemenl, Ocean Ct., Miami Beach, FL Subject Photographs Carlton Hotel (undergoing renovation/additions), looking east from west side of Collins Avenue Betsy Hotel, looking southwest from east side of Ocean Drive llaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 24 47 Description an4 Analy ses Proposed Aerial Easement, Ocean CL, Miami Beqch, FL Northwest corner of Carlton Hotel, looking east along pedestrian segment of l4th Place North side of Carlton Hotel North side of Carlton Hotel (on left), looking west along pedestrian segment of l4th Place Ocean Court (alley), looking south (Carlton Hotel on right, Betsy Hotel on left) Wuronker & Rosen, Inc. & Real Estate Appraisers & Consultants 25 48 D"t"rtpttr" r"d A, West side of Betsy Hotel (area of proposed bridge) l4th Place looking east toward Ocean Drive from north end of Ocean Court East side of Carlton Hotel (area of proposed bridge) Ocean Court looking south from point just east of south portion of Carlton Hotel parcel Yl/aronker & Rosen, Inc. aa Real Estate Appraisers & Consultants 26 49 Description ar?d Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL South portion of Carlton Hotel parcel looking northwest from Ocean Court North and east sides of Betsy Hotel and entrance to l4th Place, looking southwest from Ocean Drive l4th Place looking west (Besty Hotel at left, Carlton Hotel at rearlcenter) Ocean Drive looking south (Betsy Hotel on right) Waronker & Rosen, Inc. ta Real Estate Apprqisers & Consultants 27 50 Description and Analy ses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Ocean Drive looking north (Besty Hotel on left) l4th Street looking nofthwest (entrance to Ocean Court shown at right) l4th Street looking northeast (entrance to Ocean Court shown at left) Waronker & Rosen, Inc. & Real Estale Apprakers & Consultants 28 51 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miumi Beach, FL Collins Avenue looking north (Carlton Hotel on right) Collins Avenue looking south (Carlton Hotel on left) ll/aronker & Rosen, Inc & Real Estate Appraisers & Consultants 29 52 Description and Analyses Pruposed Aerial Easement, Ocean Ct., Miami Beach, FL Appraiser Qualifications LEE H. WARONKER, MAI, SRA Education: Affiliations: Experience: Instructor: Author: Other: Industrial Buildings Offrce Buildings Service Stations Master of Science in Management, School of Business and organizational Science, Florida International University, l98l (Major - Real Estate) Bachelor of Science Degree, The Florida State University, Tallahassee, Florida 1976 (Major - Real Estate) MAI Designation (No. 6738) awarded by the Appraisal Institute in 1983. SRA (SRPA) Designation awarded by the Appraisal lnstitute in 1981. State-certified General Real Estate Appraiser, State of Florida, License Number RZl62, May 1990. Registered Real Estate Broker, State of Florida, License #BK0152877 (1975) Appraised various types of properties, including: Restaurants Warehouses Hotels and Motels Hospitals Retail Stores Marinas Churches & Synagogues U.S. Post Offices Historical Buildings Residences Condominiums Special Purpose Properties President, Waronker & Rosen, Inc., (formerly Waronker & Associates, Inc.) Miami, Florida, from 1987 to present. Vice President, Property Consultants, Inc. from 1979 to 1986. Appraiser, The Keyes Company, 1978 to 1979. Appraiser, Miami-Dade County Department of Right-of-Way, 1977 to 1978. Appraisal Institute. Taught Courses lA-1, lA-2, 8-2, lB-A, lB-B, ll}, l2O, 210, 3 10, 320, 410, 420, 430, 51 0, 550, 600, 6 1 0 and 620, et al Seminars entitled "Dynamics of Ofice Building Valuation", "Why the Capitalization Rate is Always 10" and the "Appraisal of Real Estate 10th vs. I tth Edition". Special Master for the Dade County Valuation Adjustment Board, 1989 to l996.Assisted in the editing of rhe Appraisal of Real Estate, llth Edition and l3th Edition. President of the Miami Chapter of the Appraisal Institute, 1990 to 1991. lYaronker & Rosen, Inc. & Real Estate Appraisers & Consultsnts 30 53 Description and Analyses Proposed Aerial Eosement, Ocean Ct., Miami Beach, FL.- Appraiser Qualifi cations CARLOS A. DIEZ Education: University of Florida (Gainesville, FL) Bachelor of Arts. Major: Economics Stevens Institute of Technology (Hoboken, NJ) Substantial progress towards the degree of Master of Engineering Affiliations: State-certified general real estate appraiser, State of Flofida,RZ3420 The Appraisal lnstitute, Candidate for Designation CCIM Institute, Candidate Member Appraisal Experience: Waronker & Rosen, Inc. September,2007 to Present Appraised a wide variety of property types, including: Vacant land Office buildingsRestaurants Shopping centersHotels Free-standing retail properties Industrial properties Apartment buildings ResidentialandCommercialCondominiums CondominiumUnits Land leases (leased fee and leasehold interests) Fractured Condominium Interests Easements (including aerial and sub-surface) Special Purpose Properties Appraisal,Investment Analysis and General Real Estate Education: The Appraisal Institute 100, l0l: Basic Appraisal Principles and Procedures202: Residential Sales Comparison and Income Approaches300: Real Estate Finance, Stalistics and Valuation Modeling400: General Market Analysis and Highest & Best {Jse402l. General Appraiser Site Valuation and Cost Approach 403,404: General Appraiser Income Approach (Parts I and 2)405: General Appraiser Report llriting and Case Studies420: Business Practices and Ethics 510: AdvancedlncomeCapitalization 550: AdvancedApplications 530: Advanced Sales Comparison and Cost Approaches Seminar: Hotel Appraising - New Techniques for Today's (Jncertain Times500: Advanced Market Analysis and Highest & Best Use833: Fundamentals ofSeparating Real Property, Personal Property, and Intangible Business Assets Seminar: Marketability Studies: Advanced Consifurations andApplications CCIM Institute CI l0l: Financial Analysisfor Commercial Investment Real Estate CI 102: Market Analysisfor Commercial Investment Real Estate CI 103: User Decision Analysisfor Commercial Investment Real Estate CI 104: Investment Analysk for Commercial Investment Real EstateFANSC: FeasibilityAnalysisforRetailProperties MIMK: Advanced Market Analysis for Commercial Real Estate Baruch College (CtlNY) / Steven L. Newman Real Estate Institute NCP2000: Urban Land Economics NCP9000: Real Estqte Development ll/aronker & Rosen, Inc & Real Estate Appraisers & Consultants 31 54 Description and Anolyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Partial Client List LENDERS TD Bank, N.A. Totalbank U.S. Century Bank Wells Fargo Bank Zions First National Bank LIFE INSURANCE COMPANIES GOVERNMENT AGENCIES l't United Bank Amerasia Bank Apollo Bank BAC Bank BNY Mellon Bank BankUnited Bank of America Bank of Coral Gables Bank Leumi Bessemer Trust Branch Banking and Trust (BB&T) Bridgelnvest, LLC Cl Bank CNL Bank Capital Bank Cigna Investments, Inc. Citibank and Citicorp City National Bank of Florida Coconut Grove Bank Comerica Bank Credit Suisse First Boston Mortgage Capital, LLC Espirito Santo Bank of Florida Executive National Bank Fifth Third Bank First Bank of Miami First National Bank of South Miami FirstBank Florida Florida Community Bank Gibraltar Private Bank and Trust HSBC Bank, N.A. Holliday Fenoglio Fowler, LP Intercredit Banlq N.A. Intemational Finance Bank Israel Discount Bank of New York JP Morgan Chase Bank Live Oak Bank Lloyds Int'I. Bank (Lloyds of London) Lutheran Brotherhood Marquis Bank Morgan Stanley Mortgage Capital Northern Trust Bank Ocean Bank OptimumBank Popular Community Bank Professional Bank Regions Bank Sabadell United Bank Space Coast Credit Union Stonegate Bank SunTrust Bank Terrabank, N.A. Broward County School Board Broward County Public Works Dept. City of Coral Gables City of Miami Beach City of Miami General Services Administration Ferlprql T)ennsir Inc.,ronao Onm /FDIf' Allstate Insurance Company American General Life Insurance Co. Equitrust Life Insurance Co. Fortis Capital Corp. & Life Insurance Company Franklin Life Insurance Company General American Life Insurance Co. Independent Order of Foresters John Alden Life Insurance Company Kansas City Life Insurance Company Lumberman's Life Insurance Company Omaha Woodmen Life Ins. Society Standard Life Insurance Company State Farm Insurance Company Sun Lile Insurance Co. of America CORPORATIONS Federal Home Loan Mortgage Corp. (FHLMC) Florida Dept. of Environmental Protection Florida Department of Transportation Florida Keys Aqueduct Authority Miami-Dade Water and Sewer Authority Miami-Dade Co. -Aviation Authority Miami-Dade Co. - County Attorney's Offrce Miami-Dade Co. - General Serv. Admin. Miami-Dade Co. - Housing & Urban Dev Miami-Dade Co. - Public Works Dept. Miami-Dade Co. - School Board Miami Parking Authority Nafure Conservancv. Florida Chaoter Church ofJesus Christ ofthe Latter-Day Saints Florida Power and Light Corp. (FPL) JC Penny Corporation The Wendy's Company Chevron U.S.A., Inc. Johnson and Johnson Company DEVELOPERS AND INVESTORS South Florida Water Management Districl United States Department of Justice United States General Serv. Admin. United States Postal Services Village of Pinecrest LAW FIRMS Akerman, Senterfitt & Eidson Amstein & Lehr, LLP Barranco & Associates, P.A. Berger Singerman Berman, Wolfe Rennart Vogel & Mandler, P.A. Carlton Fields Colson Hicks Eidson, P.A. Greenberg Traurig, P.A. Holland & Knight Kirkpatrick and Lockhart Kutner and Associates Richman Greer Shutts & Bowen, LLP Steams, Weaver, Miller, Weissler, Alhadeff & Sitterson, P.A. Steel Hector and Davis Tabas, Freedman, Soloff, Brown & Rigali, P.A Tripp Scott Weiss Serota Helfman Pastoriza Cole & Boniske, P.A. Berkowilz Development Group Bristol Group, Inc. Fifteen Group, Inc. Franklin Street Properties Flagler Development Corporation Goldman Properties Hampshire Real Estate Companies Lennar Corporation MDM Development, Inc. Napolitano Realty and Hamap Corp. Noble House Resorts and Hotels Ocean Prope(ies, Ltd. Panther Real Estate PLC Investments, LLC R.K. Associates, Inc. The Scott Robins Companies Wometco Enterprises, Inc. Waronker & Rosen, Inc & Real Estate Apptaisers & Consultants 32 55 Description and An Aerial Easement, Ocean Ct., Miami Beach, FL Notable Properties Appraised Miami-Dade County Miami Seaquarium Virginia Key Miami Free Zone - Global Trade Cntr Miami International Airport Miami Metropolitan Hospital of Miami City of Miami Correctional Facility Miami Spinnaker Marina Country Club of Miami Golf Course Miami Virginia Key & Rickenbacker Marinas Mel Reese Golf Course Miami Waterways Yacht Basin Burger King Headquarters - Waterford Miami Porto Vita Club and Spa Doctors Hospital Coral Gables Ocean Steps Entertainment Center Beacon Centre Development Miami Indian Creek Country Club FBI Headquarters Miami BIV Tower Gables Waterway Executive Center Coral Gables Courthouse Tower Joe's Stone Crab restaurant Miami Beach South Shore Hospital Doral Ocean Beach Resort (formerly) Miami Beach SouthCom Headquarters Metro-Dade Bus Facility Miami Fort L auder dale/B row ard C o unty Florida Medical Center (Hospital) Jackson Marine Center Las Olas Centre Office Building Martha's Restaurant Various Luxury Single Family Homes Seneca Industrial Park Monroe Co unty/Florida Keys Marriott Key Largo Bay Beach Resort Islander Resort Hawk's Cay Resort, Marina and DRI Westin, formerly Hilton Resort and Sunset Key Island Little Palm Island Louis' Backyard Restaurant Ocean Key Resort Sloppy Joe's Bar Truman Annex - Navy Base Other Florida Counties Jupiter Beach Resort La Playa Beach Resort Sheraton Four Points Spring Hill Suites Hilton Carillon Park Outside of the United States Various Single Family Homes Single Family Home Sapphire Beach Resort Hotel Site Montego Beach Resort Botany Bay Subdivision (400 acres) Ocean Club Resort Land lease under Ritz Carlton Various Land Holdings Vacant Land Buccaneer Hotel and Golf Course Miami Miami North Miami Key Biscayne Miami Aventura S. Miami Beach Indian Creek Miami Miami Miami Beach Miami Ft. Lauderdale Ft. Lauderdale Ft. Lauderdale Hollywood Fort Lauderdale Pembroke Park Key Largo Islamorada Duck Key Key West Little Torch Key Key West Key West Key West Key West Jupiter, Palm Beach County Naples, Collier County Orlando, Orange County Tampq Hillsborough County St. Petersburg, Pinellas County Cat Cay, Bahamas Casa de Campo, Dominican Republic St. Thomas, U.S. Virgin Islands Grand Turks and Caicos Islands Montego Bay, Jamaica St. Thomas, U.S. Virgin Islands Grand Turks and Caicos Islands San Juan, Puerto fuco St. Croix, U.S. Virgin Islands West End, Grand Bahama Island St. Croix, U.S. Virgin Islands Wqronker & Rosen, Inc. & Real Estate Appraisers & Consuhqnls 33 56 Description and Analyses Proposed Aerial Easement, Ocean CL, Miami Beach, FL Descri ption & Analyses Waronker & Rosen, Inc" tt Real Estate Appraisers & Consultants 34 57 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Purpose of the Appraisal The purpose of this appraisal report is to estimate the value of the proposed easement to the ownerof theadjoiningparcelsasof August lg,20l5.Aspartoftheanalysis,anestimateof the market value of the fee simple interest in the adjoining land was developed, in order to estimate how the market value of the adjoining parcels would change as a result of the benefits afforded by the proposed easement. The value to the adjoining owner is not considered market value. The term fee simple interest is defined below. The term market value is defined on the following page. Client, Intended User and Use of the Appraisal The intended user of this appraisal is City of Miami Beach (client). No purchaser or seller of the subject property, nor any borrower are intended users of this appraisal and no such parties should use or rely on this appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. No additional intended users are identified or intended for internal decision making relating to the possible granting of an aerial easement over Ocean Court, a public right-of-way. Definition of Real Property Interest Appraised The real property interest appraised herein is that of the fee simple interest, defined as follows: Fee Simple Interest: an absolute fee without limitations to any particular class of heirs, but subject to the limitations of eminent domain, escheat, police power and taxation. An inheritable estate. Warcnker & Rosen, Inc & Real Estate Appruisers & Consultants 35 58 D^"rbtto" r"d A"rU Definition of Market Value Market Value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined.1 The Uniform Standards of Professional Appraisal Practice (USPAP) states Market Value is "a type of value, stated as an opinion, that presumes the transfer of property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in the appraisal".2 This requires the appraiser to identify the definition of market value and its authority. The definition that follows is the basis of the valuation in this appraisal and the source is the Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,Page 77472. Market Value is defined as "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: . Buyer and seller are typically motivated; ' Both parties are well informed or well advised, and acting in what they consider their own best interests; . A reasonable time is allowed for exposure in the open market; ' Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and ' The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."3 This market value definition is referenced within the appraisal regulations of the following governmental agencies : ' Title XI of the Financial [nstitutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 . Department of the Treasury . The Federal Reserve System (FRS) . Federal Deposit Insurance Corporation (FDIC) . Office of Comptroller of the Currency (OCC) I Appraisal of Real Estate, l4d'Edition, page 58 2 USPAP 2014-20l5,page U-33 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page77472 Waronker & Rosen, Inc tt Real Estate Appraisers & Consultants 36 59 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Location and Address The subject property consists of a proposed aerial easement spanning Ocean Court (a public alley) between l4th and 15th Streets, in Miami Beach, FL. Address:Between 1440 Ocean Drive and 1433 Collins Avenue Miami Beach, FL 33139 Legal Description Collins Avenue Parcel: l-ol'18. Btocr 19, ot OCErrt{ BEI\CH ADDIIION l,lo.2. occord,ng to thc ptrt $creof os rcccrdcd ir ptol Book 2" of pcqc 56 of ttre pu6lie Recoror o,Miorni-Jude co,rnly. llrt'rdo, unif ulss thul rsrluirt trct:l ul krnrl dest:nberl crs fotlc?3 Bc|inrrinql oi lrc ncrlhwrslerly ccrner al Hook 19, OCRAN BIACH At)0,llON NC?, occord,6g to llrr: Ptol .i!'gacl, re*o,dGrr ,n Plot tsm|1 ?. Pogo 5ti ut lhe Pubtic RecordS o'Miom,-OoCc County, l-loriCo, thcncc ?osterty otoirg thc northc.ly hncol soid Block .|9, o oistoncc of lal 09 leet. rrrore or tess. io lte lrelterly rf66ol o 20-fnnl ollny, ng f,,irorrrr o'r lhc olorcuoio plqt, ttren southwostcrly ctut'glhe restcrly line ol rod ar !y, o disloncc ol 110.5 fcct. moro or lms. ic lhcnorlhcotlerly corrcr of Lot 18, Etock 19 os ghown on oloresoid plot: thc^ northwes:e4y olcn? lh" norlhery lina of soirl Lot 18, Bloch 10. u rlistnnco nf140'eet ttr lhr: Norlhwegte,ly corner o{ Loi 18. Blooh 19. os shorn onofo'erod p'ql; ihaacr nor:hwrsterly c'org lho rlstedy lire of Bloc< lg ceshutn on o{or€so;( Dtrtr n dislnnce ol 87.? fael. rnore o' k:qs, ln lhn pnr6r 6l bcainn,nq. Ocean Drive Porcel: Loi 1. loss tt.e lrorth tl f€et cnd Lc! 2, ln lllcck 19, crl OCTAN BEAC'T A0nlllo\ lrC 2. oc;o,o;ng to thc Plol lTe'eof . rs rncordod ir' f,tot Book 2. ol Pcqe b6 ul the Puolic Rccord: ol Mlurrri-Ottds co.rnty. Florido Neither a survey nor legal description for the proposed easement was supplied. The legal descriptions above were copied from surveys included in the architect's drawings for the proposed renovation. The drawings indicate that the surveys were completed by Hadonne Corp. on October 15,2013. Waronker & Rosen, Inc. & Real Estate Appraisers & Consultants 37 60 Description and Anolyses P*posed Aerial Easemenl, Ocean Ct., Miami Beach, FL Owner of Record Ocean Drive Porcel: Betsy Ross Owner,LLC 1841 Broadway Suite 1009 New York, NY 10023 Source : www.miamidade. gov Collins Avenue Parcel: Ocean Court, LLC l22l Brickell Avenue Suite 1600 Miami, FL 33131 History of the Subject Property The owner has owned the Betsy Hotel (the Ocean Drive parcel) for many years, but acquired the Carlton Hotel (the Collins Avenue parcel) in October 2013 for $19,000,000 through a court- ordered sale of the property resulting from the previous owner's bankruptcy. The owner has since obtained approval from the City of Miami Beach Planning Department for a renovation (now underway) of the Collins Avenue parcel (the Carlton Hotel) that includes an expansion of the existing building (including addition of a new l-story rooftop addition). Also proposed is construction of a bridge to connect the two buildings over the alley. Proposed alterations to the Betsy are limited to the pedestrian bridge and improvements to the alley. Source: www.miamidade.gov and City of Miami Beach Planning Department llaronker & Rosen, Inc. aa Real Estate Appraisers & Consultants 38 61 Description and Analyses Proposed Aefial Easement, Ocean Ct., Miami Beach, FL Site Data The subject property is a proposed aerial easement across Ocean Court, a public alley between Collins Avenue and Ocean Drive. No survey was provided. This analysis is based on the location of the proposed easement as depicted in architectural drawings provided. Based on the recorded plat, the alley is 20 feet wide. Based on the drawings, it would have a length of 27.75 feet (the length of the area taken up by a proposed spherical structure that would envelop the bridge that is to connect the buildings on either side), and a vertical height of 26.33 feet. Based on this, the easement would have a floor area of 555 sq. ft. and a volume of 14,615 cubic feet. The parcels on the either side of the proposed easement are both trapezoidal but nearly square in shape. The parcel on the east side (the Ocean Drive parcel) has frontage of approximately 123 feet along the west side of Ocean Drive. It also has frontage of approximately l0l feet along the east side of Ocean Court, a public right-of-way that runs north-south between Ocean Drive and Collins Avenue, and approximately 132 feet along the south side of l4th Place, a public right-of- way that runs east-west between Ocean Drive and Collins Avenue. The segment of l4th Place that lies along the north side of the Ocean Drive parcel connects to Ocean Court, allowing vehicular traffic from Ocean Court to travel one way (eastbound) along 14th Place. Based on the Miami-Dade County Property Appraiser's records, this parcel has a land area of 14,537 sq. ft. The parcel on the west side of the proposed easement (the Collins Avenue parcel) has frontage of approximately 137 feet along the east side of Collins Avenue. It also has frontage of approximately 160 feet along the west side of Ocean Court, and approximately 142 feet along the south side of l4th Place. The segment of l4th Place that lies along the north side of the Collins Avenue parcel is a pedestrian-only right-of-way, such that vehicular traffic traveling north on Ocean Court may not turn left at the northeast corner of the Collins Avenue parcel (it must turn right, where 14th Place leads to Ocean Drive). According to the Miami-Dade County Property Appraiser's records, this parcel has a land area of 20,258 sq. ft. However, this excludes a small wedge-shaped parcel, identified in the Miami-Dade County Property Appraiser's records as folio #02-3234-008-0730, which the survey included in the architect's drawings indicates as being part of the Collins parcel. This parcel has a land area of 1,690 sq. ft. The Planning Department of the City of Miami Beach stated to the appraisers that the City Attorney had recently determined that based on a title search this parcel belongs to the Collins parcel, making the Miami-Dade County Property Appraiser's records incorrect. Based on this, the land area of the Collins Avenue parcel is 21,948 sq. ft. The adjoining sites on either side of the proposed easement are level and at approximate street grade. Utilities available to the adjoining sites are: Electric: Telephone: Water: Sewer Disposal: Florida Power and Light AT&T City of Miami Beach City of Miami Beach llaronker & Rosen, Inc * Real Estate Appraisers & Consultants 39 62 Descripfion and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Zoning The subject property is zoned MXE, Mixed-Use Entertainment District by the city of Miami Beach, FL. This zoning allows apartments, apartment-hotels, hotesl and commercial development. This zohihg is designed to encourage the substantial restoration of existing structures and allow for new construction. The allowable FAR is 2.0. For a detailed listing of allowable uses and restrictions, refer to the zoning code of Miami Beach, FL. Flood Zone The subject is within Flood Zone AE, areas subject to a one percent or greater annual chance of flooding in any given year. Base flood elevations are shown as derived from detailed hydraulic analyses. This flood zone requires mandatory purchase of flood insurance in participating communities. This identification was located on Flood Insurance Rate Map, Community Panel No. 12086C0317L, revised September 11,2009. For insurance purposes, a surveyor should be contacted to verify the exact zone by a flood elevation certificate, as well as its impact on insurance. A copy of the flood zone map is located in the Addenda to this report. So urce : www. miamidade. gov and www. imapp. com llaronker & Rosen, Inc. ta Real Estate Appraisers & Consultants 40 63 Description and A nalyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Real Estate Assessment and Taxes TaxingAuthority: Miami-DadeCounty Assessment Year: 2015 Millage Rate: 19.8148 (proposed) Folio Numbers: 02-3234-008-0710 and02-3234-008-0730 (Collins Avenue parcel) 02-3234-008-058 I (Ocean Drive parcel) The following is a summary of the assessment: Collins Avenue Purcel: TAXASSESSMENT ANALYSIS TOTAL ASSESSMENT SQ.FT. SIZE* ASSESSMENT PER SQ.FT. Assessed Land Value $7,681,2s0 21,948 $349.97 Assessed Value of Improvements $ 100,000 30, I 99 s3.3 r Total Assessed Value $7,781,150 30, I 99 $2s7.66 *This is the size per the Miami-Dade County Property Appraiser's records. Ocean Drive Parcel: *This is the size per the Miami-Dade County Property Appraiser's records. TAX ASSESSMENT ANALYSIS TOTAL ASSESSMENT sQ.FT. SIZE* ASSESSMENT PER SQ.FT. Assessed Land Value $8,722,200 t4,537 $600.00 Assessed Value of Improvements $6.177.800 39,727 $ls5.sl Total Assessed Value $14,900,000 39,727 $375.06 ll/aronker & Rosen, Ine & Real Estate Appraiserc & Consultants 41 64 Description and Anqlyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL.. The real estate taxes are estimated as follows: TAXCALCULATION TAXES PER SQ.FT. Millage Rate (Millage Rate -:1,000)0.0198 148 Times Total Assessed Value x $22,681,150 s324.36 Estimated Real Estate Taxes $449,422 $6.43 There is a 4oh discount given for early (November) payment of taxes which would reduce the estimated real estate taxes to $431,445 ($449,422 minus 4%). Florida Statutes require assessments to be at l00yo ofjust value (market value) with an allowable adjustment to indicate net proceeds that would be derived from a sale. This adjustment varies dependent on the taxing authority with the Miami-Dade County Property Appraiser's office typically designating in the range of l5%. Based upon the market value estimated herein the assessment is below what is appropriate. Note that the assessed value for the Collins Avenue parcel includes the wedge-shaped parcel (folio #02-3234-008-0730) that the County indicates is City-owned, and which is assessed at a lower value per sq. ft. The land on the main portion of the Collins Avenue parcel (folio # 02- 3234-008-0710) is assessed at $375 per sq. ft., or 63%o of the rate at which the Ocean Drive parcel is assessed ($600 per sq. ft.). lVaronker & Rosen, Inc lt Real Estate Appraisers & Consultants 42 65 Descfiption and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Neighborhood Overview General Neighborhood Data Location: Built Up: Growth Rate: Property Values: Demand/Supply: Present Land Use: Change in Present Land Use: Predominant Use: Property Compatibility: General Appearance of Properties: Appeal to Market: Adjacent Uses East: West: South: North: Linkages Public Transportation: Employment Centers: Expressway Access: Miami International Airport: Urban 90Yo to l00o/o Steady Increasing In balance Lodging and Retail Not likely Lodging Excellent Excellent Excellent Public Beach Retail and Lodging Office building Lodging Distance Within a few blocks Three to five miles Five to seven miles Ten to fifteen miles Access Very good Good Average Good llaronker & Rosen, Inc. ll Real Estate Appraisers & Consultants 43 66 Description and Analyses Proposed Aefial Easement, Ocean Ct., Miami Beach, FL Supply and Demand Market conditions for commercial real estate in Miami-Dade County have shown significant improvement overall since the declines that followed the recession and financial crisis of 2008, with some of the most desirable locations and property types seeing very significant improvement during the past two years. Geographically, the areas showing the earliest signs of recovery were generally the waterfront neighborhoods near the urban core (especially Brickell), Downtown Miami, Coral Gables and Miami Beach. The residential sector, which sparked the financial crisis that led to the recession, was first to see significant levels of new development, particularly in the luxury and ultra-luxury end of the market, with numerous waterfront condominium projects achieving total or near total sellouts of units priced in the multiple millions of dollars even before construction begins. The revival of the residential sector has also supported a significant recovery in retail real estate, especially at the most desirable locations, as has the general slow but steady improvement in economic conditions and overall employment, which in turn have fueled modest improvements in the office and industrial sectors. The subject neighborhood is dominated by lodging, retail and residential uses. It is in the heart of the Art Deco district of South Beach, a world-renowned tourist destination. All three sectors have experienced a very strong recovery in the subject neighborhood, which is among the most desirable locations in the metro area, with values for retail and hotel values hitting record highs during the past several quarters. It should be noted, however, that in areas like the subject where ground floor retail and hotel uses can be very profitable, residential uses tend to be most profitable only on sites that permit high-rise development, but the subject is located in a zoning district that permits only mid-rise development (up to an FAR of 2.0). Also, the current economics of hotel development make larger sites more appealing than smaller sites, as it is generally more difficult for smaller hotels to achieve the same levels of efficiency and profitability per room as larger hotels. As a result, many of the smaller parcels in the neighborhood which were improved with smaller, older hotels have in recent years been converted to retail use (which can be profitable even in small spaces that can be leased to a single retailer). The larger parcels in the neighborhood continue to be dominated by hotel uses, with most of the recent residential development occuming in other neighborhoods and zoning districts that permit higher-density (in many cases high-rise) development. The lodging sector in South Florida has been doing extremely well since recovering from the recession and global financial crisis, the effects of whichwere feltthrough 2009. Since 2Ol0,it began to register notable improvements, with the Miami Beach market leading the way as the first lodging submarket in the Miami area to show signs of recovery. By 2012, demand in the Miami Beach market had returned to previous levels, and with the decline in new hotel development activity brought about by the recession resulting in few new hotels being delivered to market, the rising demand has resulted in robust increases in both occupancy rates and room rates as well as significant amounts of renovation and re-positioning of older hotels. This rebound is illustrated in the charts on the next page, which summarize recent trends in occupancy and ADR (Average Daily Rate) for both Miami-Dade County and the Miami Beach market. The data is from the Greater Miami Convention and Visitor's Bureau, and is based on data provided by Smith Travel Research. ll/aronker & Rosen, Inc & Real Estate Appraisers & Consultants 44 67 Description and Anallses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL 100% 9s% 90% 85% S1s8.41 S160.14 80% Occupancy and ADR Miomi-Dode County 5143.9s S1s2.9s S163.44 Srzo.oo Sras rz Szqz.ot i2sz'zo S3oo s2s0 s200 s1s0 s100 Sso $o r - 7t.g% 7A3% 75.6% 76.50/o'!'[lll 2010 2011 2012 2013 2014 75% -70% 72.4% ::: I 2007 r-rI,*.- I',[ l"': 20tt 2012 2013 20t4 ,l.rn ,inIT 2@7 2008 7L.4% If 6s.z%I 2008 2009 IQs6up3n6y(l) +ADR (R) Occupancy and ADR MiomiBeach L00% 9s% 90% 85o/o 80% 75% 70% 55% 60% 6a,5% 65.1% I 2009 2010 S:oo s2s0 s2oo s1s0 sloo Sso So IQ66up6nry(l) +ADR(R) The charts on the following page show the year-over-year percent change in occupancy and ADR based on the data reflected in the charts above, and indicate substantial rates of ADR growth for the past few years, both across the broader market and in Miami Beach. Results for 2014 show a slight decline in the rate of ADR growth and a slight decline in average occupancy in Miami Beach, suggesting that the market is moving from a rapid growth phase to more stable conditions. lAaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 45 68 D"t"rtpfir" rrd Aru Occupancy and ADR - % Change Over Prior Year Miami-Dode County 15% Lo% +6,% +G.9% *y. s% +17% E*a J J I ,';i;-r t -L5% -12.L% 2008 200!, 2010 20tt 2012 2013 20t4 rOccupancy rADR Occupancy and ADR -% Change Over Prior Year MiomiBeoch L5% +7.3% +6.9% +5 +8'2o/o J i i.J .: 2008 2009 2010 20tt 20t2 2013 20L4 r Occupancy ! ADR During stable markets, or markets in equilibrium conditions, occupancy and ADR tend to move in opposite directions, as decreases in a hotel's room rates tend to induce more guests to select it over competing hotels, increasing its occupancy rates (and vice versa). The fact that Miami Beach hotel occupancy levels continued to rise between 2010 and20l3 even under rapid room rate increases provides evidence of very strong demand growth, while the more recent evidence suggests that demand growth has begun to slow down with growth in room rates slowing in response. 10% 5% +L.6% ^o/ Iulo -5% -to% -75% I -9.2% ll/aronker & Rosen, Inc. & Real Estate Appraisers & Consultants 46 69 Description and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Exposure Time Exposure time is the "estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open markef'1. This analysis considers the market value of the land on either side of the proposed easement as a basis from which to estimate the value of the easement to the adjoining owner. The easement itself would have no utility and therefore no value to any other party, so the concept of exposure time would not apply. With respect to the market value of the adjoining land, the analysis considers the exposure time of the vacant land at a market related price such as the estimated market value herein. In estimating exposure time, sales are analyzed, real estate brokers and property owners are interviewed and statistics from published surveys are considered. The subject property site is very desirable given the very strong market conditions. The exposure time for the subject as vacant land with the specific allowable uses is estimated at six months. This estimate considers that the property would have been properly marketed and priced. If the property were not to have been priced correctly or marketed through proper channels, then it is not likely that the estimated market value nor the estimated exposure time would have been achieved. Typical Purchaser of the Subject As noted above, the proposed easement would have no value to any party other than the adjoining owner. However, the analysis considers the market value and typical purchaser of the adjoining land. Based on the analysis, the typical purchaser of the adjoining properties as vacant land would be a hotel developer. I Uniform Standards of Professional Appraisal Practice (USPAP) 2014-2015 Edition, Page U-3 Waronker & Rosen, Inc lt Real Estate Appraisers & Consultants 47 70 Description and Anallses Proposed Aerial Easement, Ocean Ct., Miami Beach, FL J. 4. Highest and Best Use The adjoining sites are valued for their highest and best use, which may be defined as follows: That reasonable and probable use that will support value as defined as ofthe effective date ofthe appraisal. In analyzing the highest and best use, the following four questions are answered: 1. Legally Permissible. What uses are legally permitted on the subject site with respect to zoning ordinances and deed restrictions? 2. Physically Possible. What uses of those legally allowed are physically possible on the subject site? Financially Feasible. of those uses determined to be physically possible and legally permissible, which ones will produce a positive return? Maximally Productive. Of those that are feasible, legally permissible, and physically possible, which will produce the highest rate of return or value? As Yacant The zoning on the parcels adjoining the subject property is MXE, Mixed-Use Entertainment District by the city of Miami Beach, FL. This zoningpermits a variety of uses, of which the most likely to be feasible to develop are lodging, retail and residential uses. Residential uses at the subject location would be most likely to be profitable in a high-density (high-rise) development scenario (where residential uses tend to be most profitable on the upper floors). However, the subject zoning allows a maximum FAR of 2.0, limiting the size of any building to a mid-rise structure. The subject location is dominated by hotels, with a number of the smaller buildings along Collins Avenue occupied by retail users. On larger sites the most profitable type of development is likely to be lodging, though possibly with a retail component at the ground level such as a restaurant or cafe (along the lines of the renovation currently underway at the Carlton Hotel on the Collins Avenue parcel, which includes a new restaurant with outdoor seating). As Improved As the subject property is being valued as vacant land, the analysis of the highest and best use as improved is not applicable. Waronker & Rosen, Inc la Real Estate Appraisers & Consultants 48 71 Descriptjon and Analyses Proposed Aerial Easement, Ocean Ct., Miami Beuch, FL Appraisal Process An analysis of three separate approaches to value; sales comparison approach, cost approach, and income capitalization approach, will be considered to estimate the value of the subject property. Although these three approaches to value are considered within every appraisal report, they may not be applicable to each and every property being appraised. The cost approach is based on the principle of substitution which states that an informed purchaser would not pay more for a property than the cost of reproducing a property with the same utility. The cost approach can often yield reliable estimates of value for new construction. This approach entails estimating the cost of producing the improvements, deducting an estimate of depreciation, and then adding the value of the site as if vacant. To this value an entrepreneurial incentive is added to arrive at the estimated value by the cost approach. The income capitalization approach is based on the concept that value is created by the expectations of future benefits and higher earnings should result in higher values. Income producing real estate is purchased for the right to receive future income. The income capitalization approach consists of methods to analyze a property's capacity to generate income, and a reversion, and convert these monetary benefits into an estimate of value. The sales comparison approach is based on the principle of substitution which suggests that, within competitive markets, similar products will realize similar prices. lnherent in this concept is the premise that a purchaser would not pay more for a property than the cost to acquire another property with the same amenities and utility. The final steps in the appraisal process are review and reconciliation of the data and conclusions. In reaching a final conclusion of value, the entire process involving the approaches that were estimated must be reviewed for accuracy, completeness and consistency. After analysis, evaluation and reconciliation of the indications a value is estimated. The essence of this final reconciliation should be a defensible and rational conclusion of value. The only approach used in this appraisal is the sales comparison approach. The income capitalization approach and the cost approach are not applicable to the valuation of the subject property. Waronkq & Rosen, Inc. ll Real Estate Appraisers & Consultqnts 49 72 Cost Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Cost Approach The basis of the cost approach is the principle of substitution. This principle suggests that a prudent buyer would not pay more for a property than the cost to acquire a similar site and construct comparable improvements. Following are the procedures for preparing the cost approach. 1. Estimate the value of the land as though vacant and available to be developed to its highest and best use. 2. Determine which cost basis is most applicable to the assignment: reproduction cost or replacement cost. 3. Estimate the direct (hard) and indirect (soft) costs of the improvements as of the effective appraisal date. 4. Estimate an appropriate entrepreneurial profit or incentive from analysis of the market. 5. Add estimated direct costs, indirect costs, and the entrepreneurial profit or incentive to arrive at the total cost of the improvements. 6. Estimate the amount of depreciation in the structure and, if necessary, allocate it among the three major categories: physical deterioration, functional obsolescence, and external obsolescence. 7. Deduct the estimated depreciation from the total cost of the improvements to derive an estimate of their depreciated cost. 8. Estimate the contributory value of any site improvements that have not already been considered. (Site improvements are often appraised at their contributory value - i.e., directly on a depreciated- cost basis - but may be included in the overall cost calculated in Step 3 and depreciated, if necessary). 9. Add land value to the total depreciated cost of all the improvements to develop the market value of the property. 10. Adjust for personal property (e.g., furniture, fixtures, and equipment) or intangible assets that are included in the appraisal. ll. Adjust the value conclusion, which reflects the value of the fee simple estate, for the property interest being appraised to arrive at the indicated value ofthe specified interest in the property. I As the subject property is unimproved vacant land, the cost approach is not applicable. I The Appraisal ofReal Estate, l4thEdition,2013, Pages 568 and 569 Waronker & Rosen, Inc. $ Real Estate Appraisers & Consultants 50 73 I"rr*r C"pttrttzrt lncome Capitali zation Approach Income producing real estate is typically purchased as an investment, and from an investor's point of view earning power is the critical element affecting property value. One basic investment premise holds that the higher the earnings, the higher value, provided the amount of the risk remains constant. An investor who purchases income-producing real estate is essentially trading present dollars for the expectation of receiving future dollars. The income capitalization approach to value consists of methods, techniques, and mathematical procedures that an appraiser uses to analyze a property's capacity to generate benefits (i.e., usually the monetary benefits of income and reversion) and convert these benefits into an indication of present value.l In the income capitalization approach, an appraiser analyzes a property's capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to the approach.2 An income capitalization approach was not applied as it was not within the scope of this appraisal. Since this approach is typically not considered by purchasers of this property type, not using it does not limit the reliability of the value estimated herein. t Appraisal of Real Estate, 146 Edition, 2013,Page 4392 rbid.,439 Waronker & Rosen, Inc tt Real Estate Appraisers & Consultants 51 74 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miumi Beach, FL Sales Comparison Approach The soles comparison approach is based on the principle of substitution. The principle of substitution holds that the value of property tends to be set by the cost of acquiring a substitute or alternative property of similar utility and desirability within a reasonable amount of time.l In the Sales Comparison Approach, an opinion of market value is developed by comparing properties similar to the subject property that have recently sold, are listed for sale, or are under contract (i.e., for which purchase offers and a deposit have been recently submitted). A major premise of the sales comparison approach is that an opinion of the market value of a property can be supported by studying the market's reaction to comparable and competitive properties. Qualitative analysis is a relative comparison process without mathematics. Sales are ranked based upon their desirability as compared to the subject. Comparisons can be expressed as plus or minus as opposed to dollar or percentage adjustments. Quantitative analysis is the process of applying mathematical techniques. Sales are adjusted to the subject property on a dollar or a percentage basis. One method of supporting adjustments is through paired data analysis. This method analyzes two sales and attributes the difference in their sales prices to the characteristic which is different. This analysis requires an abundance of sales data which is frequently not available. Qualitative analysis is used herein to estimate a value by the sales comparison approach. Characteristics of the sales considered superior to the subject are given a minus (-) adjustment. Those characteristics of the sales considered inferior to the subject are given a plus (+) adjustment. Each sale is given an overall adjustment indicating how it compares to the subject. On the following page is a grid of the sales used for comparison to the subject property. t The Appraisal of Real Estate l4th Edition, 2013, page 379 Il/aronker & Rosen, Inc. & Real Estate Appraisers & Consultants 52 75 Srl"t Cr*prrttr" Ap Vacant Land Sales Grid Following is a grid of the comparable sale properties used for comparison to the subject property. Sale No. Sale Date Location Zoning Sale Price Sq. Ft. Size Price/ Sq. Ft. I June 2013 1475 Collins Avenue Miami Beach MXE $7,390,000 12,400 s595.97 2 June 2013 825 Collins Avenue Miami Beach MXE/IIPD s5,000,044 6,500 s769.24 J March 2015 251 Washington Avenue Miami Beach RPS-3 $8,250,000 r3,000 $634.62 4 July 2013 620 Ocean Drive Miami Beach MXE s5,270,000 6,500 $810.77 5 August 2013 304-312 Ocean Drive Miami Beach R-PS3 $6,300,000 I1,650 s540.77 6 February 2015 88 SW l01h Street Miami T6-48B-O $26,000,000 22,770 $ l,141.85 7 October 2012 120-130 Ocean Drive Miami Beach R.PS3 $9,200,000 t7,250 $533.33 8 October 2013 2206 Park Avenue Miami Beach CD.3 $7,000,000 17.040 $410.80 9 January 2014 6747 and 6757 Collins Avenue Miami Beach RM-3 $21,000.000 41,624 $504.52 l0 April 2014 6901 Collins Avenue Miami Beach RM-3 $26,000,000 40,250 $645.96 Subject Between 1440 Ocean Drive and 1433 Collins Avenue Miami Beach Parcel A (1433 Collins) Parcel B (1440 Ocean) MXE MXE 21,948 14,s37 Waronker & Rosen, Inc & Real Estate Appraisers & Consultants 53 76 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beqch, FL Vacant Land Sales Map *r'ro f,.'f '-of E Cli > . E g'o 1T,"1,.,-^.. -.' i 1 T trvurtl ' r-th! l{h q t.{ r t'a'"'c. 1t "rnr'' I l-" i. ,:i I llrrt:r"'r' r.,rns i. ru.r,s., f*.,r1g !rn, sr .\l l' . .,rd ll3*.*",r E ] i ,*"-.r| ' *nrt .rt(bs I aei r<r ilsi r.,o' i #:t I;**#- L" {:-"' #,^o.,*T-I.'-.- t '*.-i"* ',#., *k'fl] w I& sr t i i tt * t H'hnd ! h.,s. tr I S o ,*rroo bH-* .Ds's. I I. o*m*|u.ru,,,...- S s-'ili i; I"* '^-*I- 1* " Ic.nr.," E6r{s - $ iir'. J; !,,r;,,.njr njr'lr'f'*.*i {" f" fJ^*...i t"f* !'r;r'nir i"'f Jf,d: 3 l;p'i,r , 8Y y*ril -t , ill-i,,ffiJl;Jii *@,'qdftw ; "iri", ""*'i--',ii**" I )tr::: u I l:-- ilrD & .,-M!!dSl i iltr llet $ zJn.'," " ;. Wrrdrg 3 ii' ! ^:; t -i; 13 .*# t t D.ry tty , trfi {9!n 3 rn, e -I lsah e ^-'t lV'aronker & Rosen, Inc. la Real Estate Appraisers & Consultants 54 77 Srl"t Cr*p"rttr" AW* Comparable Land Sale I Property Location 1475 Collins Avenue Miami Beach, FL 33139 Miami-Dade County Property Identification Tax ID: 02-3234-019-1230 WRI No: 303153R Units of Comparison Price/Sq.Ft.: $595.97 Price/Acre: $26,392,857 Property Description Square Feet: 12,400 Acres: 0.28 Topography: Gradelevel Shape: Trapezoidal Zoning: MXE, Mixed-Use Entertainment District by the city of Miami Beach, FL Recording Information Sale Price: $7,390,000 Sale Date: June 2013 ORB/Page: 28681/0518 Grantor: Empire Ocean Residence Realty, LLC Grantee: CVS 10346 FL, LLC Financing: All cash to the seller Prior Sale: None in the past five years Verification: Grant Savage, listing broker at Point Group Advisors, Inc. (305-913-5505) Comments This parcel is located at the southeast corner of Collins Avenue and 15th Street. According to the listing broker, the property had been in court-appointed receivership and was sold to the highest bidder in a bidding process. The buyer is the development arm of CVS Pharmacies, which plans to construct a CVS store at the site. Waronker & Rosen, Inc. ll Real Estate Appraisers & Consultants 55 78 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Land Sale 2 Property Location 825 Collins Avenue Miami Beach, FL 33139 Miami-Dade County Property Identification Tax ID: 02-4203-052-0110, -0010, -0030, -0040, -0100, -0120, -0070, -0090, -0090, -0050 and -0060 WRI No: 303152R Units of Comparison Price/Sq.Ft.: $769.24 Price/Acre: $33,333,627 Property Description Square Feet: 6,500 Acres:0.15 Topography: Grade level Shape:Rectangular Zoning: MXE/HPD, Mixed-Use Entertainment and Historic Preservation District by the city of Miami Beach, FL Recording Information Sale Price: $5,000,044 Sale Date: June 2013 ORB/Page: Various Grantor: Various Grantee: FCI Miami Beach One, LLC Financing: All cash to the seller Prior Sale: $3,195,000 inMay 2012 Verifi cation : El Zielial, buyer (7 86-23 4 -4321) Comments This is the purchase of all I I units in a 47 year-old residential condominium located on Collins Avenue, between Sth and 9th Streets. The deal was closed on same day on l l separate deeds. The buyer confirmed their intention to dissolve the condominium and demolish the building to make way for a new 10,350 sq. ft. retail building for which approvals are in place. ll/aronker & Rosen, Inc" ta Real Estate Appraisers & Consultants 56 79 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Lond Sale 3 Property Location 251 Washington Avenue Miami Beach, FL 33139 Miami-Dade County Property Identification Tax ID: 02-4203-003-1090, 02-4203-003-1080 WRI No: 303830 Units of Comparison Price/Sq.Ft.: $634.62 Price/Acre: $27,500,000 Property Description Square Feet: 13,000 Acres: 0.3 Topography: Grade level Shape: Rectangular Zoning: RPS-3, Medium-High Density Residential Performance Standard District by the city of Miami Beach, FL Recording Information Sale Price: $8,250,000 Sale Date: March 2015 ORB/Page: 2952612117 Grantor: SOBE Second Street, LLC Grantee: SOUTHS, LLC Financing: $5,600,000 in seller financing with an interest rate of 60/o Prior Sale: None in the past five years Verification: Peter Andolina, broker (pandolina@metrol.com) Comments This is a rectangular parcel located on the east side of Washington Avenue, just south of 3rd Street. Frontage on Washington Avenue is 100 feet and the depth of the parcel is 130 feet. There is also frontage at the rear along a public alley (Collins Ct.). The zoning permits residential uses and hotels up to a building height of five stories and an FAR of 1.75. Commercial uses are not allowed. ll/aronker & Rosen, Inc aa Real Estate Appraisers & Consultants 57 80 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Land Sale 4 Property Location 620 Ocean Drive Miami Beach, FL 33139 Miami-Dade County Property Identification Tax ID: 02-4203-004-0050 WRI No: 303603 Units of Comparison Price/Sq.Ft.: $810.77 Price/Acre: $35,133,333 Property Description Square Feet: 6,500 Acres: 0.15 Topography: Gradelevel Shape:Rectangular Zoning: MXE, Mixed-Use Entertainment District by the city of Miami Beach, FL Recording Information Sale Price: $5,270,000 Sale Date: July 2013 ORB/Page: 2872112580 Grantor: 620 Partners, Ltd. Grantee: 620 Park Central Partners, LLC Financing: All cash to the seller Prior Sale: None in the past five years Comments This parcel is located on Ocean Drive, between 6th and 7th Streets, across from the beach. The buyer is the owner of the adjoining property, the Park Central Hotel, a historic 125-room Art Deco hotel. The buyer has filed for approval of a new four-story hotel building to be built on the site and incorporated into the existing hotel. lVaronker & Rosen, Inc tt Real Estate Apprahers & Consultants 58 81 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Lsnd Sale 5 Property Location 304-312 Ocean Drive Miami Beach, FL 33139 Miami-Dade County Property Identification Tax [D: 02-4203-003-0510, 02-4203- WRI No: 003-0500 303602 Units of Comparison Price/Sq.Ft.z $540.77 Price/Acre: 523,333,333 Property Description Square Feet: I 1,650 Acres: 0.27 Topography: Gradelevel Shape: Square Zoning: R-PS3, Medium-High Density Residential Performance Standard District by the city of Miami Beach, FL Recording Information Sale Price: $6,300,000 Sale Date: August 2013 ORB/Page: 288791662 Grantor: 304 South Beach, LLC Grantee: Sea Spray Development, LLC Financing: All cash to the seller Prior Sale: March 201I for $4,040,000 Comments This is a square parcel consisting of two adjacent lots located at the northwest corner of Ocean Drive and 3rd Street. One of the lots was improved with a l6-unit apartment building built in 1937 that was abandoned and boarded up but carries a historic designation. A previous owner had obtained approvals to renovate the building and build a new structure on the adjacent lot and combine the buildings into a 27-room hotel with a restaurant. The plans were never realized due to the soft market. After the sale, the buyer obtained approval to demolish the existing building and construct a new four-story multifamily building. lVaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 59 82 Sales Comparison Apprcach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Lund Sale 6 Property Location 88 SW lOth Street Miami, FL 33130 Miami-Dade County Property Identification Tax ID: 0l-0207-040-l140; 0l-0207- 040- I 08 I ; 0l-0207 -040-1 120; 0l -0207 -040- I I 00; 0l-0207 - 040- 1 1 30; 0l-0207 -040- I 090. WRI No: 303831 Units of Comparison Price/Sq.Ft.: $1,141.85 Price/Acre: $50,000,000 Property Description Square Feet: 22,770 Acres: 0.52 Topography: Gradelevel Shape:Square Zoning: T6-488-0, Urban Core Open Transect Zoneby the city of Miami, FL Recording Information Sale Price: S26,000,000 Sale Date: February 2015 ORB/Page: 2951310438 Grantor: RockvilleHospitality,LLC Grantee: GW Brickell, LLC Financing: Seller financing for $l1,000,000 at an undisclosed interest rate, payable in full on July 15, 2015. Prior Sale: December 2013 for $9,000,000 Verification: Richard B. Schreibstein, attorney ga3-276-1818) Comments This parcel is located at the southeast corner of SW lOth Street and SW lst Avenue. The location is across the street to the east from the Brickell station of the MetroRail and across the street to the south from the Mary Brickell Village retail complex. The buyer is a prominent Brazilian developer of hotels and high-density residential projects. The seller is a Maryland-based hotel management company. The seller's attorney confirmed that there is no affiliation past or present between the parties. The seller had purchased the site in December 2013 for $9,000,000 (S395.26 per sq. ft.), realizing a gain of l89Yo over l4 months. lVarcnker & Rosen, Inc & Real Estate Appraisers & Consultants 60 83 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Land Sale 7 Property Location 120-130 Ocean Drive Miami Beach, FL 33139 Miami-Dade County Property Identification Tax ID: 02-4203-003-0190; 02-4203-003-0200 and 02-4203-003-0210 WRI No: 303105R Units of Comparison Price/Sq.Ft.: $533.33 Price/Acre: $23,000,000 Property Description Square Feet: 17,250 Acres:0.4 Topography: Gradelevel Shape:Rectangular Zoning; R-PS3, Medium-High Density Performance Standard Residential District by Miami Beach, FL Recording Information Sale Price: $9,200,000 Sale Date: October 2012 ORB/Page: 28315/1488 Grantor: Ocean Drive CFI, LLC Grantee: 120 Ocean Drive, LLC Financing: All cash to the seller Prior Sale: None in the past five years Comments This parcel is located on the west side of Ocean Drive, just north of lst Street, one block from the ocean. It was purchased by an affrliate of Terra Group, a prominent South Florida developer. The company is developing a lO-unit 18 story luxury residential condominium on the site with commercial space. The project was mostly pre-sold before construction began. Wqronker & Rosen, Inc ta Real Estate Appraisers & Consultonts 61 84 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Land Sale I Property Location 2206ParkAvenue Miami Beach, FL 33139 Miami-Dade County Property Identification Tax ID: 02-3226-001-0320 & 02-3226- WRI No: 001-0330 303829 Units of Comparison Price/Sq.Ft.: $410.80 Price/Acre: $17,948,718 Property Description Square Feet: 17,040 Acres: 0.39 Topography: Grade level Shape:Trapezoidal Zoning: CD-3, Commercial High Intensity District by the city of Miami Beach, FL Recording Information Sale Price: $7,000,000 Sale Date: October 2013 ORB/Page: 2887512553 Grantor: Xenia 2206,LLC Grantee: Vintro Villas, LLC Financing: Conventional loan Prior Sale: None in the past five years Verification: Gary Silberman, attorney (gary@silberman-law.com) Comments This parcel is located at the northwest corner of Park Avenue and 22nd Street. The buyer is the owner of the adjoining property, a 13,600 sq. ft. parcel improved with a recently renovated 25,931 sq. ft., 5l-room hotel. In 2014 the owner applied to the Planning Board for approval to develop a mixed-use commercial/hotel/residential project on the combined site. The combined building is to exceed 50,000 sq.ft.The combined site has frontage of approximately 150 feet along Park Avenue and 275 feet along 22nd Street, with additional frontage along a canal at the rear. Waronker & Rosen, Inc lt Real Estate Appraisers & Consultants 62 85 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Land Sule 9 Property Location 6747 and 6757 Collins Avenue Miami Beach, FL 33141 Miami-Dade County Property Identification Tax ID: 02-321l-007-0430 and -0440 WRI No: 303612R Units of Comparison Price/Sq.Ft.: $504.52 Price/Acre: $21,875,000 Pricefunit: $1,615,385 Property Description Square Feet: 41,624 Acres: 0.96 Topography: Gradelevel Shape:Rectangular Zoning: RM-3, Residential Multifamily, High Intensity by the city of Miami Beach, FL Recording Information SalePrice: $21,000,000 Sale Date: January 2014 ORB/Page: Not yet recorded Grantor: 6T4TCollinsDevelopmentCorporation Grantee: Not yet recorded Financing: All cash to the seller Prior Sale: $4,600,000 in October 2010 Verification: Mark Rutherford, broker (305) 503-l107 Comments This is an oceanfront parcel located on Collins Avenue, between 67th and 69th Streets. The buyer is planning a l3-unit luxury residential condominium with large full-floor units averaging 5,620 sq. ft. each, and two 2-story villas at 8,688 sq. ft. each. All units will have 360 degree terraces and private elevators. Waronker & Rosen, Inc. ta Real Estate Appraisers & Consultants 63 86 Sales Comporison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Comparable Land Sule 10 Property Location 6901 Collins Avenue Miami Beach, FL 33141 Miami-Dade County Property Identification Tax ID: 02-3211-001-0050 WR[ No: 303613 Units of Comparison Price/Sq.Ft.: $645.96 Price/Acre: $28,260,870 Property Description Square Feet: 40,250 Acres: 0.92 Topography: Gradelevel Shape: Rectangular Zoning: RM-3, Residential Multifamily, High Intensity by the city of Miami Beach, FL Recording Information Sale Price: $26,000,000 Sale Date: April2014 ORBlPage: 2910814995 Grantor: FL GS Collins Avenue, LLC Grantee: SMGW Golden Sands, LLC Financing: $12,000,000 in debt financing from a private equity firm. Prior Sale: August 2005 for $19,000,000 Verification: Mario Borda and Mary Kate Swann, CBRE Comments This is an oceanfront parcel located at the northeast corner of Collins Avenue and 69th Street. It is the former site of the Golden Sands Hotel, and is located just north of the Canyon Ranch hotel and spa. The site had been approved in 2005 for development of up to 40 residential units, but the buyer plans a 20-story luxury condominium development with only l4 large, floor-through residences, including a 7,000 sq. ft. penthouse. Waronker & Rosen, Inc ta Real Estate Apprqisers & Consultants 64 87 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Adjustment Grid Below is a grid which illustrates qualitative adjustments used to compare the comparable sales to the subject property. Percentage adjustments were not utilized. [n order to utilize percentage adjustments it would be necessary to pair (compare) sales to extract value differences. This is difficult as there is normally insufficient data to provide pairings for all value differences. Below is a grid which illustrates the adjustments made. A plus (+) sign indicates the unit of comparison of the sale must be adjusted upward as that characteristic is inferior to the subject. A minus (-) sign indicates the unit of comparison of the sale must be adjusted downward since the characteristic is superior to the subject. An equal (:) sign indicates the comparable sale characteristic is similar to the subject. Due to differences between the Collins Avenue and Ocean Drive parcels with respect to location and size, separate adjustments were made to the comparable sales with respect to each parcel. Note that because there are no significant differences with respect to shape and zoning, the adjustments for these characteristics are the same for both parcels. Conditions of sale and market conditions adjustments also apply equally to either subject parcel. Adjustments With Respect to the Collins Avenue Parcel Sale No. Price/ Sq. Ft Conditions ofSrlc Market Condiiions Locrtion Zoning Size/Shepc Overall Adjustment I $s9s 97 +++ 2 $769.24 ++ 3 $634.62 ++ 4 $8I0 77 ++ 5 $540.77 +++ 6 $ 1.141.85 7 $s33.33 ++++ 8 $410.80 ++++++++ 9 $s04.52 +++ 10 $645.96 + lVaronker & Rosen, Inc & Real Estate Appraisers & Consultants 65 88 Sales Comparison AWr Proposed Aerial Easement, Ocea4 Ct., Miami Beach, FL Adjustments With Respect to the Ocean Drive Parcel Sale No. Pricc/ Sq. Ft Conditions of Sale Merket Conditions Locetion Zoning Size/Shape Overell Adjustment $s9s 97 ++++++++ 2 $769 24 ++++++++ t $634.62 ++++++ 4 $810.77 ++++ 5 $s40 77 ++++++++++ 6 $l,14l 8s 7 $533.33 ++++t ++++ 8 $410.80 ++++++++++ 9 $s04.s2 ++++++++ l0 $64s.96 +++++++ After considering the individual differences, either a plus (+), minus (-) or equal (:) sign has been placed in the "Overall" column. This indicates the overall adjustment that the sale would require as compared to the subject property. Waronker & Rosen, Inc. la Real Estate Appraisers & Consultants 66 89 Srl"t Cr-prrtt"" Ap conclusion of Land value by the sales comparison Approach The sales comparison approach compared similar properties to the subject property and adjustments were made for the pertinent characteristics. Based on these comparisons values were estimated for the subject property. The different adjustments to the two parcels lead to different value indications. The indicated adjustments are discussed below. Conditions of Sale: This category considers if the comparable sales were arm's length. An arm's length sale means the buyer and seller each acted prudently, knowledgeably, and were under no necessity to buy or sell, i.e., a sale that is other than a forced or liquidation sale. AIso considered are if any of the sales were purchased by an adjoining owner, whereby a premium was paid. Sales 4 and 8 require negative adjustments for conditions of sale because the buyers are the owner of the adjoining properties (the sites being purchased for expansion of the adjoining hotels). In addition, note that these properties were completely vacant, a rare opportunity in an area with many historic-designated buildings which are not allowed to be demolished. The ability to build new, expanding an existing building onto an adjacent vacant site, without the need to adapt a historic structure to a new design (which can raise development costs significantly) is an advantage in the local market. Market Conditions (Time): This adjustment considers current market conditions as compared to market conditions in place at the time of the respective sale. For sales selling when market conditions were superior, a downward adjustment was made. Sales selling when market conditions were inferior were adjusted upward. Sales selling when market conditions were similar did not require adjustment. All the sales except Sales 3 and 6 require positive adjustments for market conditions, which have improved since those sales occurred. Location: Location adjustments were made separately with respect to each parcel. Sales considered superior to the subject were adjusted downward. Sales considered inferior to the subject were adjusted upward. Those sales considered similar did not require an adjustment. Note that the Ocean Drive parcel's location across the street from the beach is superior to the Collins Avenue parcel, enabling higher hotel revenues (and, consequently, land values) to be achieved. Note also that the Collins Avenue parcel is not on a corner, but it benefits from a pedestrian alley along the north side that provides more direct access to Ocean Drive and the beach compared to other lVaronker & Rosen, Inc & Real Estate Appraisers & Consultants 67 90 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL interior parcels on the east side of Collins Avenue. Note that the difference in desirability between the two parcels means that comparable properties that are superior to the Collins parcel may be inferior to the Ocean Drive parcel, and parcels that are slightly inferior to the Collins parcel may be very inferior to the Ocean Drive parcel, etc. Zoning: All the sales except Sale 6 have comparable zoning. Note that the zoning in Sales 3, 5 and 7 permits higher density development, but a narrower range of uses, in comparison to the subject zoning. These influences offset each other, so that no adjustment is indicated. Sale 6 requires a large negative adjustment because it benefits from very high density zoningpermitting up to 48 stories. Size and Shape: The size adjustment is based on the principle of economies of scale whereby larger sites tend to sell for less per square foot. Smaller sites were considered superior and adjusted downward, larger sales were considered inferior and adjusted upward and those sales similar in size were not adjusted. Because the Collins Avenue parcel is larger than the Ocean Drive parcel, the sales of smaller sites require a larger negative adjustment with respect to the Collins parcel, and the sales of larger sites require a larger positive adjustment with respect to the Ocean Drive parcel. With respect to shape, Sale 2 is relatively elongated in shape, which due to its small size constitutes a disadvantage that would tend to raise development costs, indicating that a positive adjustment is needed. However, Sale 4 does not require a shape adjustment because it was bought by the adjoining owner, and adding the parcel to the adjoining site nullifies its shape disadvantages to the adjoining owner. Sale 8 requires a positive adjustment for its trapezoidal shape, making it a parcel with a more efficient rectangular main segment and a triangular rear segment that is much less likely to be usable (even for the adjoining owner). The cumulative adjustments indicate that the Collins Avenue parcel should achieve a sale price per sq. ft. below Sales 4, 6 and l0 (a range of$646 to $1,142), above Sales l, 3,5,7,8 and 9 (a range of $41 I to $635), with Sale 2 providing a conflicting indication of a value near $769. The adjustments indicate a value for the Ocean Drive parcel below Sale 6 at$1,142 and above the remaining sales ($411 to $811). The analysis would support value estimates per sq. ft. of $640 for the Collins Avenue parcel and $900 forthe Ocean Drive parcel. Based on the parcel size of 21,948 sq.ft., the market value of the Collins Avenue parcel is estimated at $14,050,000, rounded. Based on the parcel size of 14,537 sq.ft., the market value of the Ocean Drive parcel is estimated at $13,100,000, rounded. ll/aronker & Rosen, Inc. la Real Estate Appraisers & Consultants 68 91 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Additional Analysis Additional consideration was given to the January 2014 sale of the property at 230 20th Street (between Collins and Liberty Avenues) for $7,000,000. It is a 10,625 sq. ft. lot zoned CD-2, improved with a 2-story, 10,685 sq. ft. residential structure constructed in 1947 and in fair condition. The building carries a historic designation and may not be demolished. The buyer obtained approval for a complete renovation of the existing building along with construction of a l-story rooftop addition and separate 5-story addition. The sale represents a price of $659 per sq. ft., and even if the buyer considered the existing structure to contribute some value, say $50 per sq. ft. of building, this would imply that he valued the land at $609 per sq. ft. On the other hand, the buyer may well have paid less for the site than he would have been willing to pay if it were vacant and unencumbered by historic restrictions. This sale would require positive adjustments for location and market conditions, and in any event is less reliable due to the uncertainty about the actual contributory value of the improvements, but it otherwise supports the value indications from analysis of the comparable sales. Also considered in the analysis were the three current listings of comparable properties shown in the table below. Sale No.Location Zoning List Price Sq. Ft. Size Price per Sq. Ft.Comments 304-3 12 Ocean Drive Miami Beach R.PS3 s l 4,000.000 I 1.650 $1.202 NWC Ocean Dr. and 3'd St. l.ast sold August 20 14 for $6,300,000 ($541 per sq. ft.). Per broker, includes approved plans for four luxury townhouses. z 803 5m Street Miami Beach C-PS2 $7.2s0.000 9,000 $806 NWC 5'h St. and Meridian Ave. l 426 Euclid Avenue Miami Beach C-P52 $4,700,000 7,000 $671 SWC 5G St. and Euclid Ave Last sold November 201 3 for $2,000,000 ($286/sq. ft.). Per broker, includes approved plans in place for 30-room hotel and 30- seat restaurant. Subject Betwecn 1440 Oceen Drive and 1433 Collins Avenue Miemi Beach Prrcel A (1433 Collins) Parccl B (1440 Oceen) MXE nfl(E 21,948 14,537 Listings do not provide a reliable indication of market value, as they represent the seller's aspiration but do not reflect buyers' expectations. Most listings are priced near or above market, since those priced below market are usually quickly removed from the market by buyers. Therefore, since market values are more likely to be below list prices than above, a list price on a Waronker & Rosen, Ine & Real Estate Apprahers & Consultants 69 92 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL comparable property that is below the value indicated by the analysis can provide a check on the reasonableness of the analysis (and contradict it). After appropriate adjustments, the asking prices above do not conflict with the conclusions from analysis of the comparable sales. Note that Listing I was listed in July and points to higher values after adjustment for location. This is a record-high asking price for the neighborhood with the highest sale being several hundred dollars per sq. ft. lower, and it would not be unusual for a final closing price after negotiations and adequate exposure to the market to be well below the asking price. Note also that the highest and best use for Listing I is more likely to be an ultra- luxury residential project, whereas at the subject location hotel and commercial uses are more likely to be most profitable, making any indication from this listing less reliable. Benelits Afforded to the collins Avenue Porcel by the Proposed Easement By enabling the construction of a pedestrian bridge connecting the buildings on either side of the alley, the proposed easement would allow consolidation of the two hotels into a single operation with an Ocean Drive presence. This would raise the achievable revenues of any hotel operation on the Collins Avenue parcel (which would then be an annex of an Ocean Drive hotel, capable of achieving higher room rates, instead of a free-standing Collins Avenue hotel), thereby raising the value of the underlying land. This is because for any potential development project, increases in achievable revenues increase the market value of the finished project, which raises the feasibility land cost (the highest price that the land for a development p.o3.Ct can be acquired for while stiil achieving the developer's minimum required return). However, such a scenario would not raise the value of the Collins Avenue parcel to the same level as the Ocean Drive parcel. If, for example, the additional land being annexed by the Ocean Drive property were adjacent to it on Ocean Drive, creating a single, contiguous property with additional Ocean Drive frontage (essentially the scenario depicted in Sale 4 at $8ll per sq. ft.), the value would be much greater. A consolidated hotel spanning two connected but essentially non-contiguous parcels is likely to achieve lower total revenues than a similar sized hotel on a single contiguous tract, even if marketed as a single hotel property. Also, a single large tract would be more desirable from a development perspective, as it would allow construction of a single, unified structure, whereas a large tract consisting of two connected but otherwise non- contiguous segments has the disadvantage of requiring construction of two separate structures, which raises development costs. As a result, while the value of the underlying land on the Collins Avenue side of the easement would be enhanced by the ability to connect the parcels, the enhancement is likely to be less than it would be if the two parcels comprised a single contiguous tract on the Ocean Drive side. The value indication for the Ocean Drive parcel is 4lYo above the Collins Avenue parcel on a per sq. ft. basis. Based on the analysis above, the enhancement should be expected to be significant, but much less than the difference in value between the parcels, on the order of l}o to 2oyo above the Collins Avenue value. An enhancement of l5o/o is estimated, raising the value of the Collins Avenue parcel to approximately $736 per sq. ft., or $16,150,000, rounded. This ll/aronker & Rosen, Inc. & Real Estate Appraisers & Consultants 70 93 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miomi Beach, FL represents an enhancement to the value of the Collins Avenue parcel of $2,100,000 ($ l6,l 50,000 less $14,050,000). Test of Reasonableness: Feasibility Land Cost Model In order to assess the reasonableness of this value estimate, a feasibility land cost model was constructed using assumptions for hotel operating performance and development costs for "typical" Collins Avenue and Ocean Drive hotels. The model reflects the perspective of a typical hotel developer considering the feasibility of development on the subject parcels based on achievable revenues, market values and typical costs, and is analogous to the type of initial review or feasibility test that many developers conduct in order to determine whether deeper consideration of a site or negotiations are worthwhile. For the developer, the model answers the question "what is the highest price I can pay for a site and still meet my profit objectives, given certain assumptions about the development costs and value of the property that can be developed there". Note that these assumptions are not based on the specific hotels operating on the adjoining properties, as no operating data whatsoever was provided about these properties. However, the assumptions about hotel Average Daily Rates (ADRs) and occupancy rates are based on analysis of recent operating data for numerous other comparable and competing hotels in the vicinity of the subject. The assumptions about development costs and ratios to sales are based on typical figures observed across a variety of comparable hotel properties, as well as consideration of current industry benchmarks and current cost estimates as published by Smith Travel Research and Marshall Valuation Guide. The FAR used in the model is based on the zoning applicable to the subject parcels, and the average room size is based on consideration of the renovation (currently underway) of the Carlton Hotel, as well as the range of typical sizes for comparable and competing hotels in the area. Finally, the capitalization rate is derived from observation of recent sales of operating hotels comparable to those that would be likely to be built on the subject sites. The model assumptions are representative of what a typical hotel developer who is knowledgeable about the current market would use to test feasibility. The model, shown on the following page, indicates the feasibility land cost for typical (hypothetical) hotel properties that could be built on the Collins Avenue and Ocean Drive parcels. The only difference between the two is the ADR, assumed to be $170 forthe Collins Avenue property and $210 for the Ocean Drive property. The 20Yo to 25o/o difference is a reasonable representation of the "premium" in ADR that the typical Ocean Drive hotel is likely to achieve over the typical Collins Avenue hotel. The model also shows the results for an "enhanced" Collins Avenue hotel, based on a reasonable estimate of the ADR that a Collins Avenue hotel that has been annexed by an Ocean Drive hotel (connected, but not fully contiguous) would be likely to achieve (higher than the ADR of the typical Collins property but below that of the typical Ocean Drive property). The "enhanced" Collins property is assumed to achieve an ADR of $180, which is 5% to 7Yo above the typical collins property. llaronker & Rosen, Inc. & Real Estate Appraisers & Consultqnts 71 94 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Feasibility Land Cost for Hypothetical Collins Avenue and Ocean Drive Hotels Model Assumptions ADR, Collins Avenue Hotel ADR, Ocean Drive Hotel Average occupancy Room Revenues Ratio to Sales NOI Ratio to Sales Capitalization Rate FAR Development Cost per Room Sq. Ft. per Room Development Cost per sq. ft. Entrepreneurial I ncentive Land Area per Room (sq. ft.) Calculations ADR Days in year Average occupancy Room Revenues Other Revenues* Total Revenues NOI Ratio to Sales Net Operating lncome Capitalization rate Market Value per Room Entrepreneurial lncentivett Market Value Before lncentive Development Cost per Room Feasibility Land Cost per Room Land area per room (sq. ft.) Feasibility Land Cost per sq. ft. Hypothetical Hotel / Collins Avenue Parcel Srzo x 365 x 80% s49,640 + 55,516 Sss, rse x 40% s22,062 x 6.250/o s3s2,996- ss8,833 S294,163 - S13o,ooo s154,163x 250 s5s7 Hypothetical Hotel / Ocean Drive Parcel S21o x 365 x 80% S61,320 + 55,813 s68,133x 40% 527,2s3 x 6.25/o S436,0s3- 572,676 S363,378 - s130,000 s233,378x 250 S934 Hypothetical "Enhanced" Collins Avenue Hotel s180 x 365 x 80Yo Ssz,seo + 55,840 ss8,400 x 40% s23,350 x 6.25Yo 9373,760- s62,293 Slrt,qat- S13o,ooo S181,467 x 250 5726 s170 S210 80% 90% 40% 6.25% 2.0 s130,000 500 s260 20% 2s0 * (rom rewnues : ratio to sales) - room revenues tr (market value per room + (1 + entrepreneurial incentive)) - market value per room The model indicates the market value per room that would be achievable based on typical assumptions for room rates, occupancy, room revenues, total revenues, expenses (implicitin the net operating income), and the capitalization rate. Deducting a typical entrepreneurial incentive and typical development costs from the market value indicates the maximum amount that the typical developer could pay for the site and still realize the desired incentive (profit). llaronker & Rosen, Inc. tl Real Eslate Apptaisen & Consultants 72 95 Sales Comparison Approach Proposed Aerial Easement, Ocean Ct., Miami Beach, FL The model indicates feasibility land costs per sq. ft. of $657 for the Collins Avenue parcel and $934 for the Ocean Drive parcel using ADR assumptions of $170 and $210, respectively, which are very close to the value indications derived from analysis of the comparable sales. The model also indicates that an increase of 5%;o to 7o/o in the achievable ADR of the Collins Avenue property (to $ 180) would be sufficient to raise the feasibility land cost to $726 per sq. ft. This is also close to the value estimate of the "enhanced" Collins Avenue property (derived by applying an estimate of l5o/, to the difference between the per sq.ft.values of the two parcels). Because the model employs reasonable market-derived assumptions, it provides a good check on the reasonableness of the value estimated by analysis of the comparable sales. The model supports the earlier indication of a l5oh increase in the market value of the hypothetical "enhanced" parcel. Therefore, the analysis supports an estimate of the value of the proposed aerial easement to the owner of the adjoining properties of $2,100,000. lTaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 73 96 Reconciliation of Value Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Reconciliation of Value The reconciliation process considers the approaches approach to value is analyzed as to its reliability and the following values: Cost Approach Income Capitalization Approach Sales Comparison Approach which were utilized in this report. Each applicability. These approaches indicated Not applicable Not applicable $2,100,000* *Volue of the proposed eosement to the adjoining ovtner, based on the estimated increase in lhe market value of the adjoining land that would occur as u result of the easement. The cost approach estimates the land value and adds the depreciated value of the improvements. As the land being appraised is vacant, this approach is not applicable and was not applied herein. The income capitalization approach analyzes the projected income and expenses of a property and capitalizes the net income into a value estimate. Typically vacant land is not purchased based on its ability to generate income. This method is not applicable and was not applied herein. The sales comparison approach compares sales of similar properties to the subject property and is the only applicable approach to value. These sales were analyzed for differences such as conditions of sale, financing, market conditions, location, zoning, shape/size, and other characteristics. The strength of this approach relies on the quality of the comparable sales. Sales which closely resemble and can be compared easily with the subject are most desirable. The sales utilized were considered comparable and make the sales comparison approach the only reliable indication of value. In order to estimate the value of the proposed easement to the adjoining owner, the analysis considered the impact that the easement would have on the market value of the fee simple interest of the adjoining parcels (as though vacant). Therefore, the cost approach and the income capitalization approach were not applicable. Full reliance is placed on the sales comparison approach, based on the methodology described above. Based on the analysis, the value of the subject property to the adjoining owner, as of August 19, 2015, is estimated at $2,100,000. The value estimated herein is not market value, as the value estimate is a value solely to the adjoining owner. Waronker & Rosen, Inc lt Real Estate Appraisers & Consultants 74 97 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Addenda lVaronker & Rosen, Inc. ta Real Estate Appraisers & Consultants 75 98 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL County Area Description Waronker & Rosen, Inc ta Real Estate Appraisers & Consultants 76 99 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL - Miami-Dade County and Area Description General Overview Miami-Dade County, often referred to as "Miami" is known internationally for its weather, beaches, banking, find art, shopping, and Latin culture. While many pass through the Cruise Capital of the World, 2.5 million people call it home. Miami-Dade County is at the southeastern tip of Florida and is the south-easternmost state in the continental United States. Its land area is approximately 1,946 square miles and is bordered by Broward, Collier, and Monroe Counties to the north, southwest, and south, respectively. The county is bordered by the Atlantic Ocean to the East and Everglades National Park to the West. Demographics As of the 2013 Census report, Miami-Dade County has2,496,435 residents. Over half of those were born outside the United States;70 percent fall between the ages of 25 and 55. As depicted in the following graph, the county's population has risen steadily since 1970. e txIaGcit .C, 2,300 e.600 2,400 2,200 2.000 t.r00 1.600 1,100 l,aoo Rlddqlt PSdrUm [l l0.lrll-OldG Cqlnv, R (RJinH$OP) 50116: U.S. Dapartmcnt d Ccilncao: Crnlrt a,]tlu r9r0 t9t5 r9r0 199s 2000 shr&d trt.r hrdi.a[ Ug raerdctr. 2014 rlra.ch.rfl(rrlicd.ag 1970 19?5 2010 2015 FRED * Miami-Dade County Population Projections 2015 Projection based on 2011 Estimate Percentage change 2011 to 2015 2020 Projection based on 2011 Estimate Percentage change 20ll to2020 2,591,790 3.8%2,717,631 4.9% Miami has a positive reputation for international business, and developers are marketing their new projects to those individuals. Therefore, the county's population is expected to increase at an even greater rate approaching the year 2020. Waronker & Rosen, Inc. ta Real Estate Appraisers & Consultants 77 100 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Miami is the largest city in the County. Other populous municipalities include Hialeah, Miami Gardens, Miami Beach, and unincorporated land. Actively growing are some new cities since 2000 such as Cutler Bay and Doral. Brief History Miami was founded in 1866 after the end of Spanish rule in Florida. Before the turn of the century, prominent figures such as William and Mary Brickell and Henry Flagler established a community and connected the young city to the rest of the United States. Island people moved here for work. ln 1910, John Collins discovered fresh water on Miami Beach, and within a decade, the population soared, and businessmen bought up the land. The city quickly became a popular spot for tourists, but it crumbled under the hurricane of 1926. During the decades of war, parts of Miami-Dade County became training grounds for military. Residents then slowly built back up the tourism industry. The early 1960's marked the beginning of the arrival of large numbers of Cuban Refugees into Miami-Dade County and South Florida. In the years following, significant numbers of immigrants have come from Haiti, Cuba and other Latin American countries. Government Miami-Dade County has a strong mayor form of government, with nine elected individuals (one mayor and eight commissioners) making up the Miami-Dade County Board of Commissioners. The mayor appoints a professional administrator to manage the daily activities of the county government and a county attorney to handle its legal matters. Some governmental activities, services and functions previously handled by individual municipalities are now handled by the county. Among these are real property assessment and valuation, health and welfare, most water and sewers, traffic engineering, public libraries, public transportation, public housing, urban renewal, seaport, airport, regional parks and air and water pollution control. In addition to these, Miami-Dade County provides services to the unincorporated areas of the county such as: police and fire protection, building and zoning regulation, trash and garbage collection and disposal, parks and recreation, consumer protection and corrections and rehabilitation of adults and youth offenders. Waronker & Rosen, Inc. & Real Estate Appraisers & Consultants 78 101 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Economic Base The primary industries that support Miami-Dade County's economy through employment are trade, transportation and utilities, followed by education/health services and government. The most known is tourism, a major industry for Miami-Dade County. The following chart reflects the county's demographics by trade, with tourism ranking the highest number of companies, followed by retail and finance, insurance and real estate. Miami-Dade County Demographics by Trade 40000 35000 30000 2s000 20000 1s000 10000 5000 0 I No. of Companies ,':}t$tFy Source: The Beacon Council A year-round growing season allows the agricultural industry to be the top vegetable supplier and producer in the country. The industry employs more than 20,000 people and produces more than $2.7 billion in economic benefits each year. As a result, agritourism has sprouted an industry throughout the agricultural area where visitors can sample and purchase locally grown products. lTaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 79 102 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Transportation Miami Internotional Airport (MIA) and its linkages are considered to be the driving force for growth behind its surrounding area. Airport traffic in 2013 included over 40 million passengers, 2 million tons of freight, and 2 million tons of cargo. Other airports within the county include Kendall-Tamiami Airport and Opa-locka Executive Airport. The aviation industry directly and indirectly contributes $26.7 billion and 282,043 jobs to the local economy. PortMiami annual activity includes 4.3 million cruise passengers and 7.4 millions of tons of cargo. The port contributes more than $27 billion annually to the South Florida economy and helps provide direct and indirect employment for more than 207,000 individuals. It is currently undergoing construction for a two-way underwater tunnel between the port and downtown Miami. Scheduled to be completed in 2015 is the Deep Dredge Project, set to deepen the channel from its current 42-foot depth to minus 50 feet in order to accommodate super cargo ships now being constructed. Within Miami-Dade County, major roads include the Palmetto Expressway (State Road No. 826), a major north/south expressway; the Dolphin Expressway (State Road No. 836), a major east/west expressway; Interstate 95 and the Florida Turnpike. All of these represent Miami's expressway network and make almost any destination in Miami-Dade County within 30 to 45 minutes driving time. Transportation systems include a Busway in south Miami-Dade County linking to Metrorail, an elevated rail rapid transit system connecting portions of Miami-Dade County. In July 2012, a new Metrorail station in MIA links south Miami-Dade County, downtown Miami and the entire elevated rail line. The enables seamless connections to the Metromover systems and to a web of transportation arteries in neighboring counties leading to the rest of Florida. The Miami Intermodal Center (MIC) links the airport, EasVWest Rail, Amtrak, Tri-Rail, AirporUSeaport Connector and Metrorail mainline rail. Located near the State Road No. 836/State Road I l2 Connector, it presently contains the bulk of the rental car agencies. East of the airport in the future it will contain retail, commercial, residential and tourist-designed development. The Metromover automated people mover system is located in downtown Miami and is an off- shoot of the Metrorail system. There are also Metrobus buses, most of which are in service daily throughout the county. The Metromover system includes the Brickell Avenue financial district and also runs north to the Omni area. Other transportation services in Miami-Dade County include Tri-Rail, railroads and taxicabs. Railroad service by Amtrak is accessible in northwest Miami-Dade. Tri-Rail is South Florida's commuter train system which services Miami-Dade, Broward and Palm Beach Counties. Education Based upon student population, the Miami-Dade County School system is the fourth largest public school system in the nation with 415 institutions including elementary, middle, high, K-8, charter, alternative and magnet schools. Many private institutions exist as well. lVaronker & Rosen, Inc. & Real Estate Appraisers & Consultants 80 103 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Several colleges and universities located in the county are University of Miami, Barry University, Florida International University, Miami-Dade Community College, St. Thomas University, Florida Memorial College and Johnson & Wales University. Medical Miami-Dade County has the largest concentration of medical facilities in Florida. The largest institution is Jackson Memorial Medical Center, the second largest public hospital in the nation which shares many teaching, treatment and research capacities with the University of Miami. Private hospitals include Baptist Health System, Mercy, Miami Children's, and Mount Sinai. Sports Professional, college and even local neighborhood sports draw spectators, participants and investors to a high degree and create a positive atmosphere. Professional football (Miami Dolphins), basketball (Miami Heat), baseball (Miami Marlins) and ice hockey (Florida Panthers) are continual draws. As of January 2014, business negotiations are currently underway to bring Major League Soccer to Miami. There are two horse tracks and a dog track. Several of these tracks have been approved for slot gambling or table gambling, depending upon location in a municipality or Indian reservation. Also offered are golf tennis, as well as the numerous water sports, given the significant bodies of water. Arts and Culture Known for the wealth of ethnic diversity and heritage, Miami-Dade County has a cultural mix of festivals, concerts, theater, and dance performances. Adrienne Arsht for the Performing Arts of Miami-Dade County opened in 2006 and is home to the Concert Association of Florida, Florida Grand Opera, Miami City Ballet, and the New World Symphony. The county is also home to several museums and wildlife attractions. Summary During its history, Miami-Dade County and the Greater Miami area have experienced significant changes and growth. Trends indicate that the growth will continue with Miami-Dade County rapidly becoming an international city with a diverse culture. The economic base and the bilingual population should continue to attract new residents and businesses into Greater Miami. Sources including, but not limited to: United States Census Bureau (Jan. 2014). http://ouickthcts.census.eov/qftt/states/12ll2086.html Miami-Dade County Portal (Jan. 2014). www.miamidade.eov The Beacon Council (Jan. 2014). wrtrv.beaconcouncil.com Federal Reserve Economic Data (Jan. 2014). http://research.stlouisfed.ore/fred2l Miami Herald (various articles). htto://www.miamiherald.com,/ ll/orunker & Rosen, Inc. & Real Estate Appraisers & Consultants 8I 104 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Flood Zone Map Waronker & Rosen, Inc. la Real Estate Appraisers & Consultants 82 105 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL. Flood ZoneME IVIA li InterFlood www.lnterfood.om . 1-8(X)-252-6633 Prcparad fior: Waronker & Rosen, krc. 1440 Ocesr Dr Miani Beach. FL 331394108 Miami - Dade County Unincorporaffi Areas 120635 ATLANT) OCEAN FLOODSCAPE Flood Haza(bM@ m.p fumbcr 120SC0317L Ellective lhfte September 11,2009 Fo.r(td ry Floo.tsorrca 8??.7?.FL@D m.floadlore.ql runr GaarYrd.0.03r.s crErB Bratto!. Waronkq & Rosen, Inc. & Real Estate Appraisers & Consultqnts 83 106 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL Additional Data ll/'aronker & Rosen, Inc. & Real Estate Appraisers & Consultants 84 107 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL TO: FROJIA: DATE, SUUECT: g MTAMTBEACH q, ., nhd b.A, l TXD Czrmtiq Catr Drin, lr/Umi !.eh, f brido 33 I 39. w.oionibchfi.go COAAAAITTE E MEMORAN DUM Lrnd Ure end Dcvclopmcnt Committcc Jimmy L. ltlorrlct, Clty Manager Mrrcfi 1S,2014 DI8CUSSIOT{: BETSY,CARLTOII HOTEL RENOVANON AI{D POSSIBILITY OF AT AIR RIOHTS EASETEiIT AT{O GREEN ALLEY Ot Dcccmbcr 1'1, 2013, .t trc rcquad of Corrnbsionor Ed Tobin, OE City Commbslon rcfirncd a dirolrirn iHn to thc Lmd Ulc end Dcvcloprnarn Committcc, rcaadhg the Bctry/Ceilon Hotcl lcnotretaon end the poartitty ol en ak rigtttr.acmcnt end grccn e[cy, in ordcr to proddc a covlrld conncctirn bGtrtlcn thc 2 shucturra, ovcr a Cily Alcy (Occst Contt). On Fcbru.ry tl,20ltl, thr Hirtorh Prcrcrvdion Board approcd/conrilcrcd a nar dcvdopmcnt cnfrcd'Crlton Hotrcf, d 1433 Collins Avcnr.p. Thc sutficn pofrrct proporc! to subCantlaly rdran snd odqc thc cxlding 3-dory Crrlton Hot6l brildng, induding the conltnrciifi of trc nat tour (4) rtory ground lcvC additiono, a onc (1) story grormd lcvc{ additiil ard a partiC rodop addlion. Additionally, the 4flicant ia propocing, wbiect to City Commicion epprw.l, to condruct e ncw pcdcetrbn bridgc cpeil{ng Occan Court (ency) thd wouH corncd thc Certon llotd to thc Bctty lbLl loc.tcd at 11140 Ocaan Ddvc, to thc inm€dletc ed. Tho fdlwing lc a rummary d thc hlstori: gtatus ol each of tfrc cristitg rfrucilrs8: 14t0 Occen Driw - Thc Bslsv Hotcl Coruhcfed in 1941 end dcignod by ercfiitcct L. Munay Dixon h the Colonid Revival rtybd ercftitcctrrc, thc rut4irc{ strucfi.rc is dalriH s! 'Contribding' (Hbtorlc) h tho Miami Bcrdt Hicbric Proporties Databasc srd b locatcd within the Occan DridGollins Arrrnuc Local Hirtoric Diltrict and thc Miami Bcacfi Ardribctural Didict. 14lXl Colfinr Avenuc - Thc Carlton Hotsl Construcicd ln 't937 end dcrigncd by Fbnry lloharsr in ttrc Art Dcco rtyb of erchitqcturs, thr 3rticd lbudurc ir clerdlicd er 'Contsituting' Hiltoric) in thc Mhmi Beech Hiltoric Propcrllcr Detabetc and ia locstrd withh tE Oceen DridCollinr Avsruc Local Hirtoric Distdcl rytd thc Miemi Bcacfi Archihc{ural Diltict. ln ordcr to unify thc opcrdion of both thc Csrlton Hotcl end tho Bcilay llotcl, thc proiccl epdic.nl har propord b coilfuci.n qrd6Gd pcdcatien bridgo.p.nning hFnty (20) bct acrocr thq Occen Court public elcyray, conncding thc thid levcls ol bo[r hotclr. From rn Appropldcnor rtrn@h, both Phnnlng Stdl and tho HFbrlc Prcrarvauon LUDCTIO lTaronker & Rosen, Inc. S Real Estate Appraisers & Consultants 85 108 Addenda Proposed Aerial Easement, Ocean Ct., Miami Beach, FL' L.ftd t,.. ild Dev.bprn ntcdimm.. 8.tty{.rlbn Ai. Rightr E.!.moni elld Gllcn Aicy Mrrrfi 19, 2014 Borrd haw no oUcciion b th. Eopo.cd bddgp cormGdinn, er it rcr.dd not bc viaibb ftomci[r.r r'tc cdfru Avcnuc or oocan &ivc pubrc rigltrof-rvey, qrd odd bc carily r!\,onrd h thc ftnura. Howcwr, thc epprwd dthc HPB Bo.rd b urbicct to orr approvcbf th. city commbion and thc applicsnt wi[ aho havp to cnrurs that cl othcr puuic wqtc, Bu[dh, and Lifo-Sabty roquircmcnb can bc letFlicd, inctuding suficicrt dcaranco!. yuhcn tha matcr was rdbrrtd by thc commiuion in Dcccmbcr, tha Lend Ur cornmittewr! .rled b concider 0r fo{orhg: 1. Ths fi.{urc viaion tbr e[cyr bctrrvocn collins Awnue md occan eivc (occen court)2. An ovlraI polry on 'Ar Rightr' ovrr allcye3. Thc undorlrourd fuHr br aleyr 4. Whst thc Crty can r)@ci in rstrrn tur grantirp * nghtr rnd undcprourd ngtils wiihin grUic rllcyr city ltdt fro.n thc Ptrnnlng .od Pr6li: worlrc llcpartnqrtt hsl! mct with thc owrpn andopcfdoil d thc Bdy€arlton tlobl, to <lircuss thG ovcrell spproach to lmprovlng the connectirp rlcyr and puUb rififd*rF. Att cfiod b a daft pmpo:el of the typo d improvemcnb conlcmpbtcd for thG furd portiona of thc elby. Thc Admhirtralion rccommcndr thd Utt Land Ulc Commitlcc discrJ.r thG mattcr linthGr and provilc epprogirte policy dicc{bn. lf rupportivc ol thc gcnaral dirccilon of thc proporcd dr dghts calarncnt baing Gqucted, it b tiJrtlcr Gcommcndsd thel tho mattcr bc tranrmittcd bad( to thq Fdl City Commirsion for further irput. Att cfimont JLM/Jru/TRM I:\lCllrcCrrH)ArE$ n t!. nd Dor*96{ Cmmtb.l2ot4utrt r re. a,lala-t Cdbn Ar., E.sd- EriE LIOC h.20ta dq LUOCtfi Prn2 Waronker & Rosen, Inc. ta Real Estate Appraisers & Consultqnts 86 109 THIS PAGE INTENTIONALLY LEFT BLANK 110