R7A-Transfer Of An Air Rights Easement Agreement To Betsy Ross Owner LLCCOMMISSION ITEM SUMMARY
Gondensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Approving,
Second And Final Reading, Following A Duly Noticed Public Hearing, The Transfer Of An Air
Easement Agreement, To Betsy Ross Owner, LLC. (Applicant) For The Property ldentified ln Exhibit "A,"
Order For The Applicant To Construct A Bridge Over Ocean Court To Join The Carlton And The
Hotels; Which Easement Area Contains Approximately 181 .66 Square Feet ln Total Area, 19 Feet
Ocean Court: And The
Item S ummary/Recommendation :
The Betsy Ross South Beach Hotel (Betsy Hotel) located at 1440 Ocean Drive, and the Carlton South
Beach Hotel (Carlton Hotel) located at 1433 Collins Avenue, are owned by BETSY ROSS OWNER, LLC
(Betsy Ross), a Delaware limited liability company authorized to do business in the State of Florida. The
Betsy Hotel and the Carlton Hotel are separated by a City public right-of-way known as Ocean Court, an
alley that runs south to north parallel to Ocean Drive. The right-of-way of Ocean Court located between the
Betsy Hotel and the Carlton (ATTACHMENT B), was dedicated by plat to the City as a public right-of-way;
this dedication also includes the air rights over the Ocean Court right-of-way (the air rights over the Ocean
Court right-of-way are referred to hereinafter as the Easement Area).
The City's Historic Preservation Board (HPB), pursuant to HPB Order and Supplemental Order No.7414
approved the installation by the Betsy Ross of an elevated pedestrian bridge, which varies in length from 20
feet 10-718 inches to 20 feet 11-114 inches, has a structural width of 8 feet 4-314 inches with a decorative
cover that has a width of 30 feet 9-3/8 inches, and located a minimum of 19 feet above the surface of the
Ocein Court right-of-way that is, within the Easement Area, for the purpose of connecting the third floor
levels of the Betsy Hotel and Carlton Hotel. The pedestrian bridge is intended not to impede vehicular
access through Ocean Court, up to the height of 18 feet 7 inches above the surface of Ocean Court.
Pursuant to Sections 82-37, the sale or transfer of City property, including any interest in City propefi, as
with an air rights easement, is to be referred by the City Manager to the Finance and Citywide Projects
Committee. Enclosed are two updated appraisals: one ordered by the City, the second ordered by the
Betsy Ross. The City's Appraisal indicates the air rights as being worth $2,100,000. The Betsy Ross'
Appraisal indicates that the air rights as being worth $240,000.
At its September2,2015 meeting, the City Commission read the title into the record atthe appraised
amount of $2,100,000 and recommended to move forward with the Second Reading Public Hearing at its
October 14,2015 City Commission meeting via Resolution No.2015-29131.
THE ADMINISTRATION HEREBY PRESENTS TO THE MAYOR AND CITY COMMISSION THE
RECOMMENDATION OF THE FCWPC TO MOVE FORWARD WITH THE GRANT OF EASEMENT FOR
AIR RIGHTS ACROSS OCEAN COURT FOR $24O,OOO AND RECOMMENDS THE FUNDS TO BE USED
TOWARDS THE "GREENING" OF OCEAN COURT.
At its October 5,2015 meeting, the Finance and Citywide Projects Committee made a motion to move
forward with the grant of easement for air rights across Ocean Court for $240,000 and recommends the
funds to be used towards the "oreenino" of Ocean Court.
Financial Information:
Source of
Funds:
OBPI
Financia! lmpact Summary:
DepartmentrQlggctor Assistant City lUlanager City lt/lager
JJF:..€_ETC >/'JLM T\
1 S\October\PUBLIC WORKS\The Betsy Air rig hts.T:\AGENDA\20
Agenda ltem
Date* AnIAMIBEACH R?A
to-t(ll7r530
g MIAMIBEACH
TO: Mayor Philip Levine and
FROM: Jimmy Morales, City Ma
DATE: October 14,2015
City of Miqmi Beoch, 1700 Convenlion Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov
of the
SSION MEMORANDUM
Commission
SECOND READING
HEAR!NG
SUBJECT: A RESOLUTION OF THE MA AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING, ON SECOND AND FINAL READING, FOLLOWING A
DULY NOTICED PUBLIC HEARING, THE TRANSFER OF AN AIR RIGHTS EASEMENT
AGREEMENT, TO BETSY ROSS OWNER, LLC (APPLICANT) FOR THE PROPERTY
IDENTIFIED IN EXHIBIT "A," !N ORDER FOR THE APPLICANT TO CONSTRUCT A
BRIDGE OVER OCEAN COURT TO JOIN THE CARLTON AND THE BETSY HOTELS;
WHICH EASEMENT AREA CONTAINS APPROXIMATELY 181.66 SQUARE FEET IN
TOTAL AREA, 19 FEET ABOVE OCEAN COURT; AND THE CITY RECEIVING
PAYMENT, BASED UPON APPRAISED VALUE, FROM THE APPLICANT.
BACKGROUND
The Betsy Ross South Beach Hotel (Betsy Hotel) located at 1440 Ocean Drive, and the Carlton
South Beach Hotel (Carlton Hotel) located at 1433 Collins Avenue, are owned by BETSY ROSS
OWNER, LLC (Betsy Ross), a Delaware limited liability company authorized to do business in the
State of Florida. The Betsy Hotel and the Carlton Hotel are separated by a City public right-of-way
known as Ocean Court, an alley that runs south to north parallel to Ocean Drive. The right-of-way of
Ocean Court located between the Betsy Hotel and the Carlton (ATTACHMENT B), was dedicated by
plat to the City as a public right-of-way; this dedication also includes the air rights over the Ocean
Court right-of-way (the air rights over the Ocean Court right-of-way are referred to hereinafter as the
Easement Area).
The City's Historic Preservation Board (HPB), pursuantto HPB Orderand SupplementalOrder No.
7414 approved the installation by the Betsy Ross of an elevated pedestrian bridge, which varies in
length from 20 feet 10-718 inches to 20 feet 1 1-114 inches, has a structural width of 8 feet 4-314
inches with a decorative cover that has a width of 30 feet 9-3/8 inches, and located a minimum of 19
feet above the surface of the Ocean Court right-of-way that is, within the Easement Area, for the
purpose of connecting the third floor levels of the Betsy Hotel and Carlton Hotel. The pedestrian
bridge is intended not to impede vehicular access through Ocean Court, up to the height of 18 feet 7
inches above the surface of Ocean Court.
Under the proposed air rights easement, the Betsy Ross shall bear any and all costs of the
installation, maintenance, utilities, replacements, repairs, taxes, insurance and any and all other
costs and expenses, including any necessary relocation or undergrounding of existing utilities in
conflict with the pedestrian bridge, involved in its installation, operation and use.
531
City Commission Memorandum - The Betsy Air Rights
October 14, 2015
Page 2 of 4
Pursuant to Sections 82-37, the sale or transfer of City property, including any interest in City
property, as with an air rights easement, is to be referred by the City Manager to the Finance and
Citywide Projects Committee. Enclosed are two updated appraisals; one ordered by the City, the
second ordered by the Betsy Ross. The City's Appraisal indicates the air rights as being worth
$2,'t00,000. The Betsy Ross'Appraisal indicates that the air rights as being worth $240,000.
ANALYSIS
City staff has reviewed the proposed grant of easement, pursuant to the criteria established under
Section 82-38 of the City Code for the proposed sale or lease of City property:
1) Whether or not the proposed use is in keeping with city goals and objectives and conforms
to the City's Comprehensive Plan.
Satisfied. The proposed use of the adjacent properties is consistent with the future land use
category description contained in the Comprehensive Plan.
2) The impact on adjacent properties (if any), including the potential positive or negative
impacts such as diminution of open space, increased traffic, noise level, enhanced property
values, improved development patterns and provision of necessary services. Based on the
proposed use of the property, the City shall determine the potential impact of the project on City
utilities and other infrastructure needs and the magnitude of costs associated with needed
infrastructure improvements. Should it become apparent that further evaluation of traffic impact
is needed; the purchaser/lessee shall be responsible for obtaining and paying for a traffic impact
analysis from a licensed traffic engineer.
Satisfied. The Applicant owns the properties on either side of the proposed easement, and
the easement should enhance the property values. There will not be any impact on City utilities,
which are below ground. Other above ground utilities will be relocated as part of the
development. The elevation and narrow width of the bridge provides unimpeded access in the
event the City or any utility company may need to access any below ground easement. The
easement is above Ocean Court, so there will not be any traffic impacts.
3) A determination as to whether or not the proposed use involves a public purpose, or is in
keeping with the community's needs, such as expanding the City's revenue base, reducing City
costs, creating jobs, creating a significant revenue stream, and/or improving the community's
overall quality of life.
Satisfied. The bridge will remove unnecessary foot traffic and luggage handling activityfrom
the City's sidewalks and not impede vehicular access along Ocean Court. The covered bridge
will also provide shade and protection from the elements.
4) A determination as to whether or not the proposed use is in keeping with the surrounding
neighborhood, will not block views or create other environmental intrusions, and evaluation of
the design and aesthetic considerations of the proposed development or project.
Satisfied. The HPB approved the design of the proposed bridge pedestrian bridge to connect
the Carlton Hotelto the Betsy Hotel.
5) The impact on adjacent properties, whether or not there is adequate parking, street and
infrastructure needs.
532
City Commission Memorandum - The Betsy Air Rights
October 14, 2015
Page 3 of 4
Satisfled. There will not be any adverse impacts to adjacent properties other than those owned
by the Applicant.
6) Such other issues as the City Manager or his authorized designee, who shall be the City's
Planning Director, may deem appropriate in analysis of the proposed disposition.
Satisfied. lt is recommended that the consideration for granting this easement should be heard
at a public hearing and that the Applicant should pay the appraised value of the easement.
Additionally, as this application was originally referred as a Revocable Permit, and again for
purposes of guiding the City Commission in its consideration of the proposed request, City staff also
reviewed the proposed easement, pursuant to the criteria established under Section 82-94 of the
City Code for the granting/denying of Revocable Permits:
1) That the Applicant's need is substantial.
Satisfied. Granting the permit will enhance the security of the neighborhood by facilitating the
unification of the Betsy Hotel and Carlton Hotelwith safe and appropriate access. The bridgewill
remove unnecessary foot traffic and luggage handling activity from the City's sidewalks and not
impede vehicular access along Ocean Court. The covered bridge will also provide shade and
protection from the elements.
2) That the applicant holds the title to an abutting property.
Satisfied, The Applicant is the fee simple owner of the properties and the properties are adjacent
to Ocean Court.
3) That the proposed improvements comply with applicable codes, ordinances, regulations, and
neighborhoods plans and laws.
Satisfied. The proposed elevated pedestrian bridge will be constructed in accordance with the
relevant sections of the Code of the City of Miami Beach and the Florida Building Code,
including proper elevation for service and emergency vehicles.
4) That grant of such application will have no adverse effect on governmental/utility easements
and uses on the property.
Satisfied. The pedestrian bridge does not impact any governmental use of the right of way, as it
is elevated 18 feet 7 inches above ground-level. Above ground utilities will be relocated as part
of the installation. The elevation and narrow width of the bridge provides unimpeded access in
the event the City or any utility company may need to access any below ground easement.5) Alternatively:
a. That an unnecessary hardship exists that deprives the applicant of reasonable use of the
land, structure or building for which the Revocable Permit is sought arising out of special
circumstances and conditions that exist, and were not self-created, and are peculiar to the
land, structures or buildings in the same zoning district, and the grant of the application is
the minimum that will allow reasonable use of the land, structures, or building.
b. That the grant of revocable permit will enhance the neighborhood and/or community by such
amenities as, for example, enhanced landscaping, improved drainage, improved lighting and
533
City Commission Memorandum - The Betsy Air Rights
October 1 4, 201 5
Page 4 of 4
improved security.
Satisfied. The Applicant has agreed to help fund the construction of a "green" alley adjacent to
the properties that will improve the appearance and drainage of Ocean Court.
6) That granting the Revocable Permit requested will not confer on the applicant any special
privilege that is denied to other owner of land, structures, or building subject to similar
conditions.
Satisfied. The safety and security of guests of any property requires appropriate measures,
especially at commercial establishments such as hotels. Granting the easement provides the
means for the Applicant to ensure the safety of the hotel guests traveling between the hotel
buildings. Granting the easement will not confer any special privilege on the Applicant that would
otherwise be denied to others similarly situated in the same zoning district.
7) That granting the Revocable Permit will be in harmony with the general intent and purpose of
Article lll of the City Code, and that such Revocable Permit will not be injurious to surrounding
properties, the neighborhood, or othenruise detrimental to the public welfare.
Satisfied. The pedestrian bridge will comply with all City Code regutations and maintain the
present service uses along Ocean Court, while ensuring the safety of hotel guests and all users
of the City right-of-way. As such, it will neither be injurious to the surrounding properties nor
detrimental to the public welfare.
The Administration and Applicant have negotiated a Grant of Easement for Air Rights (Attachment
c).
At its September 2, 2015 meeting, the City Commission read the title into the record at the appraised
amount of $2,100,000 and recommended to move fonruard with the Second Reading Public Hearing
at its October 14,2015 City Commission meeting via Resolution No. 2015-29131.
At its October 5, 2015 meeting, the Finance and Citywide Projects Committee made a motion to
move forward with the grant of easement for air rights across Ocean Court for $240,000, and
recommends the funds to be used towards the "greening" of Ocean Court.
CONCLUSION
The Administration hereby presents to the Mayor and City Commission the recommendation of the
FCWPC to move forward with the grant of easement for air rights across Ocean Court for $240,000
and recommends the funds to be used towards the "greening" of Ocean Court.
Exhibits:
A - Sketch and Legal description of the encroachment
B - Rendering of proposed bridge
C - Draft Easement Agreement
D - Betsy appraisal
E - City appraisal
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T:\AGENDA\20'15\October\PUBLIC WORKS\The Betsy air rights, second reading. MEMO.doc
534
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING, ON SECOND AND
FINAL READING, FOLLOWING A DULY NOTICED PUBLIC HEARING,
THE TRANSFER OF AN AIR RIGHTS EASEMENT AGREEMENT, TO
BETSY ROSS OWNER, LLC (APPLTCANT) FOR THE pROpERTy
IDENTIFIED IN EXHIBIT "A," !N ORDER FOR THE APPLICANT TO
CONSTRUGT A BRIDGE OVER OCEAN COURT TO JOIN THE
GARLTON AND THE BETSY HOTELS; WHIGH EASEMENT AREA
CONTAINS APPROXIMATELY 181.66 SQUARE FEET IN TOTAL
AREA, 19 FEET ABOVE OCEAN GOURT; AND THE Clry RECEIVING
PAYMENT, BASED UPON APPRAISED VALUE, FROM THE
APPLICANT.
WHEREAS, Betsy Ross South Beach Hotel located at 1440 Ocean Drive
(hereinafter the "Betsy Hotel"), and the Carlton South Beach Hotel located at 1433
Collins Avenue (hereinafter the "Carlton Hotel"), are owned by BETSY ROSS OWNER,
LLC, a Delaware limited liability company authorized to do business in the state of
Florida (hereinafter "Betsy Ross" or Applicant); and
WHEREAS, the Betsy Hotel and the Carlton Hotel are separated by a City
public right-of-way known as Ocean Court, an alley that runs south to north parallel to
Ocean Drive; and
WHEREAS, the right-of way of Ocean Court located between the Betsy Hotel
and the Carlton Hotel as legally described in Exhibit "A" attached hereto and made a
part hereof, was dedicated by plat to the City as a public right of way; this dedication
also includes the air rights over the Ocean Court right-of-way (the air rights over the
Ocean Court right-of-way are referred to hereinafter as the "Easement Area"); and
WHEREAS, the City's Historic Preservation Board ('HPB'), pursuant to HPB
Order and Supplemental Order No.7414 approved the installation by the Betsy Ross of
an elevated pedestrian bridge, which varies in length from 20 feet 10-718 inches to 20
feet 11-114 inches, has a structural width of 8 feet 4-314 inches with a decorative cover
that has a width of 30 feet 9-3/8 inches, and located a minimum of 19 feet above the
surface of the Ocean Court right of way (that is, within the Easement Area), for the
purpose of connecting the third floor levels of the Betsy Hotel and Carlton Hotel (the
"Pedestrian Bridge"); and
WHEREAS, the Pedestrian Bridge is not intended to impede vehicular access
through Ocean Court, up to the height of 19 feet above the surface of Ocean Court; and
WHEREAS, the City desires to grant an easement to Grantee for the sole
purpose of ingress, egress, transport, installation, maintenance, and repair across,
over and through the Easement Area, as may be required by Betsy Ross in connection
with its operation and use of the proposed Pedestrian Bridge; and
535
WHEREAS, under the air rights easement, the Betsy Ross shall bear any and
all costs of installation, maintenance, utilities, replacements, repairs, taxes, insurance
and any and all other costs and expenses, including any necessary relocation or
undergrounding of existing utilities in conflict with the Pedestrian Bridge, involved in its
installation, operation and use of the Pedestrian Bridge (the "Operating Costs"); and
WHEREAS, pursuant to Section 82-37(a), of the City Code, the City Commission
on September 2,2015 scheduled the second reading, public hearing on this item for
October 14,2015; and
WHEREAS, pursuant to Sections 82-37, the sale or transfer of City property,
including any interest in City property, as with an air rights easement, is to be referred
by the City Manager to the Finance and Citywide Projects Committee (Finance
Committee); and
WHEREAS, the Finance Committee and was heard on October sth, 2015, at
which time the Committee recommended in favor of the transfer; and
WHEREAS, the Finance Committee, based upon the Applicant's appraisal,
recommended that the air rights easement be valued at $240,000; and
WHEREAS, the Finance Committee also recommended that the funds be
dedicated towards improving Ocean Court, towards the "green alley" that the Applicant
and Public Works are currently designing; and
WHEREAS, pursuant to Section 82-38, of the City Code, the Planning
Department prepared a written planning analysis, which has been provided to the City
Commission; and
WHEREAS, pursuant to Section 82-37, the City Commission desires to enter into
the attached air rights easement agreement, and to transfer the easement rights for fair
market value.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, approving, on second and
final reading, following a duly noticed public hearing, the transfer of an air rights
easement agreement, to Betsy Ross Owner, LLL (Applicant) for the property identified in
Exhibit "A," in order for the Applicant to construct a bridge over Ocean Court to join the
Carlton and the Betsy Hotels; which easement area contains approximately 181.66
square feet in total area, 19 feet above Ocean Court; and the City receiving payment,
based upon appraised value, from the Applicant.
PASSED and ADOPTED this _day of October,2015.
ATTEST:
Philip Levine, Mayor
APPRCn,EDASTO
FOBM & I.ANGUAGE
SFORE(ECI'IION
oF ltjo{
Rafael E. Granado, City Clerk
536
EXHIBIT A
@COUS}N5 SURVIYilRS & ASSOCIATIS, INC.
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uAvlE, FLofitsA 33314
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COUSINS SURVEYORS & ASSOCIATES, INC.
5921 SW 47TH AVENUE, SUITE 1011
DAVIE, FLORIDA 33514
CERTIFICATE 0F AUTHORIZATION : LB # 6448
PHONE (954) 6E9-7766 FAX (954) 689-7799
CLIENT :
THE BETSY SOUTH BEACH
LAND DESCRIPTION AND SKETCH
LAND DESCRIPTION:
A PORTION OF THAT 20 FOOT ALLEY LYING WTHIN BLOCK 19 OF,.OCEAN BEACH ADDITION NO.2",
ACCORDINO TO THE PLAT THEREOF, AS RECORDED IN PLAT EOOK 2, PAGE 56 OF THE PUSLIC RECORDS
OF UIAMI-DADE COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBEO AS FOLLOWS:
THA] SPACE BETWEEN AN ELEVATION AF 24,41 FEET (LOWER UMIT) TO AN ILEVATION OF 50.91 FEET
(UPPER LIHIT) WNOSE HORIZoNTAL LIMI]S ARE DEFINED BY THE VERTICAL EXIENSIoN OF IIIE FoLLowING
DESCRIBED PARCEL:
COMMENCE AT THE NORTHEAST CORNER OF LOT 20, OF SAID BLOCK 19;
THENCE SOUTH 07'30'59. WEST ALONG THE WEST RIGHT OF WAY LINE OF SAID 20 FOOT ALLEY, A
DISTANCE OF 55.55 FEET TO THE POINT OT BEGINNING AND A POINT ON A TANGENT CURVE CONCAVE
TO THE SOUTHWEST:
THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, HAVING A RADIUS OF IO FEET, A CENTRAL
ANGLE OF I8O'OO,OO" ANO AN ARC DISTANCE OF 51.42 FEET TO A POINT ON THE EASTERLY RIGHT OF
WAY L NE OF SAID 20 EOOT ALLEY;
THENCE SOUTH 07'50'59" WEST ALONG SAID WESTERLY LINI. A DISTANCE OF 15.80 FEET TO A POINT
ON A TANGENT CURVE CONCAVE TO THE NORTHEAST;
THENCE SOUTHWESTERLY ALONG THE ARC OF SAID CURVE HAVING A RADIUS OF IO FEET, A CENTRAL
ANGLE OF I8O'OO'OO'' AND AN ARC DISTANCE OF 31.42 FEET TO A POINT ON THE WESTERLY RIGHT OF
WAY LINE OF SAIO 20 FOOT ALLEY;
THENCE NORTH 07'50'59" EAST ALONC SAID WESTERLY LINE, A DISTANCE OF 15.80 FEET TO THE POINT
OF BEG]NNING.
THE AFORE}/ENTIONED ELEYATIONS ARE EASED ON THE NORTH AMERICAN VERTICAL DATUM OF 1988
(NAvDsB).
THE LOWER AND UPPER LIMITS TOGETHER WITH THE COURSES AND DISTANCES DEFINE THIS
RIGHT-OF-WAY AND AIR RIGHTS EASEMENT.
SAID LANDS SITUATE, LYING AND BEING IN MIAMI/DAOE COUNTY, FIORIDA.
NOTES:
1. NOT VALID WITHOUT IHE SIGNATURE AND THE ORIGINAL RAISED SEAL OF
A FLORIOA LICENSED SURVEYOR AND MAPPER.
2. LANDS SHOWN HEREON WERE NOT ABSIRACTED FOR RIGHTS-OF-WAY.
EASEMENTS, OWNERSHIP, OR OTHER INSTRUMENTS OF RECORO.
3. DATA SHOWN HEREON DOES NOT CONSTITUTE A FIELD SURVTY AS SUCH.
4. THE LAND DESCRIPTION SHOWN HEREON WAS PREPARED BY THE SURVEYOR.
5. BEARINGS SHOWN HEREON ARE ASSUMED.
CERTIFIED TO: THE CITY 0F MIAMI BEACH
I HEREBY CERTIFY THAT THE ATIACHED "LAND DESCRIPTION AND SKETCH" IS
TRUE AND CORRECT TO THE BEST OF YY KNOWLEOGE AND BEUEF AS
PREPARED UNDER MY DIRECTION IN JULY,2O15, I FURTHER CERTIFY THAT
THIS ,,LAND OESCRIPTION AND SKETCH. VEETS THE MINIMUM TECHNICAL
STANDARDS FOR SURVEYING IN THE STATE OE FLORIDA ACCORDING TO
CHAPTER 5J-17 Oi THE FLORIDA ADMINISTRATIVE CODE. PURSUANT TO
SECIION 472.027, FLORIDA STATUTES. SUBJECI TO THE QUALIFICATIONS
NOTED HEREON.
Q"a^r--"t e,'G,-----
, FOR THE F RM, BY: --------
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3921 SW 47TH AVENUE, SUITE 1011
DAVIE, FLORIDA 55314
CERTIFICATE 0F AUTHORIZATI0N : LB # 6448
pHoNE (954) 689-7766 FAX (9s4) 689-7799
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EXHIBIT C
This instrument prepared by and
after recording return to:
Eve Boutsis, Rsquire
City Attomey's Office
1700 Convention Center Dr., 41h Floor
Miami Beach, FL 33139 (For Recorder's Use Only)
GRANT OF EASEMENT FOR AIR RIGHTS
This Grant of Easement for Air Rights (the "Easement" or the "Agreement") is made and
cntcred into as of this day of 2015. by the CITY OF MIAMI tsEACH
("City"), a municipal corporation duly organized and existing r-urder the lavvs of the State of
Florida. having an address at 1700 Convention Ccnter Drive, Miami Beach, Florida 33139
("Grantor"), in favor of BETSY ROSS OWNER, LLC, a l)elaware limited liability compan!,
having an addrcss at 1440 Ocean Drivc, N{iarni Beach, Florida 33139 ("Grantee").
A.
RECITALS
Grantee is the fee olvner of the Betsy Ross South Beach Hotel (1440 Ocean Drive) and
the Carlton South Beach Hotel (1433 Collins Avenuc) and the real propertv on w'hich
lhey are located. the real property is legally described in Bxhibit "A" attachcd hereto and
made a part hereof (collectively the "Hotel Propcrty'').
The right-of v"ay of Occan Court located betw'een the Betsy Ross South Eleach Hotcl and
the Carlton South Beach Hotel as legally described in Exhibit "8" attached hereto and
mado a part hcrcof, was dcdicated by plat to Grantor as a public right of rvay; this
dedication also inoludes the air rights over the Ocean Court right-of-way (the air rights
over thc Ocean Court riglrt-of-rvay are referred to hereinafter as the "Easement Area").
The City's Historic Preseruation Board ("HPB"). pursuant to HPB Order and
Supplemental Order No. 7414, copies of *'hich are attached hereto and made a part
hereof as Exhibit "C", approved the installation by Grantee of an elevated pedestrian
bridge, which varies in length from 20 feet l0-7i8 inches to 20 feet ll-114 inches, has a
structural r.vidth of 8 feet 4-314 inches with a decorative cover that has a width of 30 feet
9-3i8 inches, and ]ocated a minimum of 19 feet above thc surface of the Ocean Coum
right of way (that is, within the Easement Area), for the purpose of oonnecting the third
floor levels r-rf the Betsy Ross South Beach Hotel and C'arlton South Beach Hotel (the
"Pedestrian Bridge"). The Pedestrian Bridge shall not impede vehicular access througfi
Ocean Court (up to the height of 19 feet above the surface of Ooean Court).
B.
C.
541
13, $rsntcr has :rgrred t* *rflnt iln €ffscrnent tr: firantee for the sule purpose of ingrexx,
egr*:ss, transpcr{n insteillatiein, maintenance. snd r*pair a{ross" *t'rr and through thc
Hasement Ar*& as ma,v be requiretl by Crnntee in s*nnecti*n uith its operation and use
tlf thc P*ilcstrian Bridge.
|1. {irantee shall bcar any and all costs of installation" mainlenance. utilities" replacemtnts,
repairs* t&q$s. ins*rnnc* {iild flny *nd all othcr costs and expcnses, includins any
n{*es$$ry reloc*tion or undergrcunding of existing utilities in canflict rvith the Ped*strinn
Bridge. inx*lverl in its insiallati*n" *perutian and use af tl'rs Pedestrian Bridg* {t}rx
"'0perating ensts"),
NCIW" T}{EREFORE, in eonsiderntion of the sum ol'l'cn Doll*rs ($1*.fi0} *nd other good and
v*luahle cnu*ider*ti*n, the ruceipt and sufficiencl' o[ rvhich arr llerctry nrkn*rv]edged. the partiss
hereto sgref. *s f*11*ws:
l. Reqitsls" "[.he above recitals are tru* cnd enrrecl nnd hy lhis referencc are inceirporated *s
if tirlly s*t foxh herein,
7" Egsertient Gmntor hcreby grants ter Grante$, lbr the usc and henefit *f Granter" its
successsrs and assig*s and itx &Sents. empl*yees ond irrviti:es, ail ea$em&nt ovnr, esros$.
nnd through the La-csmsnt Area solely tbr ingress. rlgres$, trenspor{. use. install:rtion.
sp'lratisn, maintsnan$e, repl**emrlnt. snd rssair *f th* Fedestrinn Briclg*, I{srcpfirr"
unless *pe*itieii to th* **ntrary. us* rrl'the tenn "Ped*strjan filridgc" shall include thc
sleetrical irnd utilit.v cannection* anel ssrociatetl equipnrent tor proper operation al'the
F*destrian Bridge. i*cluding lighting and fir* sprinkler slstcnrs. The xudllce r:l' th*
{}*ean C*urt right *f wery suhject t* th* E**m*mt Ari:*l wil! at all timr:s rcrnain
unobstrucietl for its eontinusd us* by fir*ntor and th* public as a dedieated public right *f
rray {which use xha}} i*qlude, rvithout limitation. prdestrian antl v*hicular activity}.
erartee shall sxerei*e its *asenrcnt rights h*reund*r rvithoul interfering with th*
ccntinued us* of Ocean C.uurx right of way by {irantor and/or the public ax * deeli*atr.d
public right *f w*y, incl:ding lrhicular &ccess up to a &eight of I.Q feet above the surface
CII0*ean Ccurt. An-t* electrical utiliries rnny hnvr to be placed undergraund. at firantee's
sxprs*$s, so that th* hridg* cl*** nnf interfbrc with utilily"
Contribulinn" As lurther ernsideratir:n *ruI inllurement For Grantor'* grar* ol' t*ris
Easement"6rll*tgeshallpaytcrcrantorac*ntributionintheamcuntsf-
{* be pnid in installmentx ax lirllr;ws: { I } $75,t}t}t} {rpon exe*ulisn sf this Agreement; tXJ
withln I3 munths of exer.ution sl this Agreement; all* (3)
rvithin 3S msnths of exscution of this Agr*ement or upr:rl obtaining the Certificatc *f
()ccupancy tbr the l)edestrian Bridge, rrhichever occuffi first.
M*i,S,,t$fi.qS$S. firantee egrees to instali, use, operate" maintain, r*pair a*d repl*ce the
Pedeslriau Bridg*, rrr n*cs$sflry porti*ns thereot. so that sarne is at all tinres in go*d
wcrking crder and condition a:rd tiee of maierial dnfects. subject only t* occasional
interruption cf serviee due ta {i} ordinary rvear and tear anrJ use thcreof: (ii) routine or
extraurdinary maintrnance" rspair ar replacementl or {iii} e},e*ts hey*nd the (irn*tse"s
J.
4.
542
5.
reasonable control. Grantee shail have the right to select the contractor(s) of its choicc in
connection with all aspects of installation, maintenance, repair. and replacement ol the
Pcdestrian Bridge: providcd. holvever, that ali agreements rvith such contractor(s) shall
be bona-fide. arnrs-length agreements for sen'ices at usual and customary rates and shall
he subject to prior approval of Grantor. which approval shall not be unreasonably
rvithheld. After completion of any work by Grantee. Grantce shall, at its sole cost and
expensc, immediately, with due diligcnce, restore the roadrvay surface of the Ocean
Court right of way to the condition in which it existcd immediately prior to the
performance of such rvork (the cost of which shall be included in Operating Costs).
Grantee shall bear any and all costs of installation, maintenance, utilities. replacements.
repairs, taxes, insurance and any and all other costs and expenses, including any
nccessary relocation or undergrounding of existing utilities in conflict with the Pedestrian
Bridge, involved in Grantee's sole cost of installing, operating and using the Pedestrian
Bridge (the "Operating Costs").
The Grantor may maintain, repair and replace necessary potions of the surl-ace of the
Ocean Court right of rvay and/or utilities and other easements on, above or belorv the
right of way. as it deems necessary, in its solc and reasonable discretion. In the event
that the Pedestrian Bridge is damaged during any such maintenance. repair or
replacement. the Grantor shall u,ork with the Grantee to make all necessary repairs to the
Pedestrian Bridge at Grantor's sole expense. Grantee shall use bcst etforts to: (a) avoid
causing any damage to or urlreasonable interference w'ith the Ocean Court. right of rvav
and Easement Area; and (b) minimize any disruption or inconvenience to Grantor and
the public in their usc of Ocean Court as a dedicated public right of rvay.
Pavment Covenants. Grantee as the sole user of the Pedestrian Bridge shall be
responsible for any and all Operating Costs of the Pedcstrian Bridge. Grantor shall be
responsible for any costs associated with damage to the Pedestrian Bridge resulting from
the Grantor's maintenance, repair or replacement of portions of thc Occan Court right of
way or utilities or othcr easements in the right of u,ay.
Terrn. The term of this Easement shall be perpetual unless terminated by the parties in a
writing executed by both. This Easement shall not merge with any deed to the Hotcl
Property or any part thereof but shall survive for the term described herein.
Successors and Assigns. This Agreement shall bind, and the benefit thereof shall inure to
the respective successors and assigns ofthc parties hereto.
Limitation. It is the intention of the parties hereto that this Agreement shall bc limitcd to
and utilized for the purposcs expressed herein and only for the benefit of the persons and
properties named herein. The roadway surface of thc Easement Area shall continue to be
used for appropriate pedestrian and vehicular activity. except as necessary during times
of installation, maintenance, rcpair or replacement of the Pedestrian Bridge by Grantee,
or maintenance, repair or replacement of the surfacc of the Easement Area or Grantor's
maintenance, repair or replacement of utilities or other easements in thc Easernent Area
6.
7.
8.
543
bv Grantor. Grantor shall not be responsible for the actions of Third-Parties not
contracted by Grantor who may cause darnagc to the Pedestrian Bridge. Although
Grantee may perform maintenance activities, Grantee shall be requircd to obtain a
temporarv right-of-lvay closurc pcnnit shall be required if the maintenance obstructs the
alley way or requires temporary closure of the alley rvay due to the maintenance actions.
9. Indemnification.
Crantee shall indemnify and hold harmless Grantor, its officers and employees,
from any costs, liabilities, claims. losses, and damages (including, without lirnitation.
reasonable attomeys' fbes and disbursements at thc trial level and all levels of
appeal), r,r'hether suit is instituted or not. relating to death of or injury to persons. or
loss of or darnage to property. resulting from, arising out of, or inourred in
corurection rvith the existence and use of the easement and the easement area by
Grantee. and/or its ofticials employees, contractors, and agents; and including, but
not limited to, any violation by the Grantee, and/or its oflicials, employees,
contractors, and agents. of any laws, rules, regulations or ordinances regarding
hazardous materials. hazardous wastes" hazardous substances, solid r,vaste. or
pollution, rthether now, existing or hereafter. enacted or promulgated, as they may be
amcndcd from tirne to tirne ("Environmcntal Larvs"); any presence) release, or threat
of release of hazardous materials, hazarclous rvastes. hazardous substances, solid
tt'astc or pollution at, upon. undcr. from or within the easement area by Crantee,
and/or its officials. employees, contmctors; and agents; the tailure of Grantee, andlor
its officials, employees. contractors, and agents, to duly perform any obligations or
actions required to be taken nnder any Environmental Law's (including, without
limitation. the imposition by any governmental authority of any lien or so-ca]led
"super priority lien" upon the easement area); any clean-up costs: liability for
personal i.rjrrry or property damage or damage to the environment; and any fines,
penalties. and punitive damages. or any 1-rnes or assessments incurrcd by or claimed
against Grantor and arising out of the failure of Grantee, and/or its ofticials,
employees, contractors, and agents, to comply lvith Environmcntal l,arns in
connection with the use of the easement and the easement area by Grantee, and/or its
officials, employees, contractors, and agenls.
Grantee shall also, as part of the indemnification provided to Grantor pursuant to
this Section 9, defend any and all claims asserted against Grantor resulting tiom,
arising out of, or incurred in connection with the existence and/or usc of the
Easement and the Easemcnt Area by Grantee, and"/or its oficials, employees,
contractors, and agcnts. Grantec shall bc cntitlcd to select counsel of Grantee's
choice to defend claim; provided however, that such counsel shall first be approved
by Grantor's City Attomey, which approval shall not be unreasonably conditioned.
withheld, or delayed; and, provided furthcr, that the Grantor shall be permitted. at
its cost and expense, to retain independent counsel to monitor the claim proceeding.
The duty to def'end set fbrth in this subsection shall be severable and independent
from the indemnity obligations otherwise set forth in this Section 9, to the extent
that if any other provisions and/or subsections of this Section 9 are deemed to be
A.
B.
544
C.
t0.Default.
D.
invalid and/or unreasonable. this duty to defend provision shall remain in full force
and eflfect.
Notr.vithstanding anything contained in Section 9 to the contrary, Grantee shall not
be obligated or liable to Grantor, or any third parties, fbr any costs, liabilities,
expenses, losscs, claims or damages, w'ith respect to third partv claims resulting
from the gross negligence, recklessness or u'illful misconduct of Grantor or its
offi cials, employees, contractors, and agents.
The indemnity an defense obligations set fbrth in this Section 9 including, without
limitation, the provisions of its subsections, shall sun ive the expiration of the Term
or any termination of this Eascment regarding any and all costs. Iiabilities. claims,
losses, and darnages (including, rvithout limitation, reasonable attorneys' fees and
disbursements at the trial level and all levels of appeal), whether suit is instituted or
not. relatilg to death of or injury to persons, or loss of or damage to property,
resulting fr<-rm, arising out of. or incurred in connection with the existence and use
of the Easement and the Easement Area by Grantee andior its officials. cmployccs.
contractors, and/or agents. For purposes of example only and without limiting the
generality of the ibregoing. costs, liabilities. claims. losscs and/or damages vvhich
are unknown or unaccrued as of the date of the expiration of the Term or other
Tcrmination of the easement could include but not be limited to. latent construction
defects and/or environmental remediation claims.
Delirult by Grantee. In the event of a defauit by Grantee in the maintenance,
opcration or repair of the Pedestrian Bridge, Grantor shall give written notice to
Crantee, specifying the nature of such default. Grantee shall have a period of ten
(l0) days tbllorving receipt of said notice in rnhich to rernedy the default (or such
longer time as may be necessary and reasonable, provided Grantee shall have
commenced a cure within said l0-day period and is diligently and continuously
prosecuting same): t-ailing which Grantor shall have the right to enter upon the
Easement Area, for the limitcd purpose of eflecting the required repair or
maintenance of the Pedestrian Bridge. Notr.vithstanding the forcgoing, if thc dcfault
is of such a nature that an emcrgency situation arises constituting an unsafe or
unsanitary condition, the period for cure of such default shall bc accclcratcd to a
period of time rvhich is reasonablc in light of the nature of the emergency. All costs
incident to curing a default by the Grantee under this subsection A shall bc thc solc
responsibility and obligation of, and aocordingly. shall be borne by, thc Grantee.
Default by Grantor. In the event of a default by Grantor in the repair of
the Pedestrian Bridge resulting from damage caused b-v Grantor to the Pedestrian
Bridge pursuant to Grantor's activities under Section 4 hereof, Grantee shall give
written notice to Grantor, specifying the nature of such default. Grantor shall have
a period often (10) days following receipt of said notice in which to rcmcdy the
default (or such longer time as may be necessary and reasonable, provided
Grantor shall have commenced a cure within said 1O-day period and is diligently
A.
B.
545
ll.
prosccuting same)? failing u,hich Grantee shall havc the right to effectuate the
required repair ol the Pedestrian Bridge. Notwithstanding the fbregoing, if the
default is of such a natute that an emergency situation arises constituting an
unsaf.e or unsanitary condition. the period for cure of such default shall be
accclcrated to he a period o[time rvhich is reasonablc in light of the nature of the
emergenc)'. Al[ costs incident to repair of the Pedestrian Bridge shall be bome by
the Grantor.
Enforcement. In the event it becomes necessary lbr any party to defend or institute legal
proceedings as a result of thc material failure of either party to compl}, with the terms,
covenants and conditions of this Agreement, the prevailing party in such litigation shall
recovel fiom the other party all costs and expenses incurred or expended in connection
therer.vith, including, without limitation, reasonable attomey's fees and costs, at all leveis.
Vcnuc and Jurisdiction. This Agreement shall be govcrned and construed in all rcspects
in accordance with the larvs of the Statc of Florida, r.vithout regard to its conflict of law's
provisions. Further, all parties hereto agree to avail themselves of an submit to the
personal jurisdiction of the Courts of the State of Florida in Miami-Dade County.
Interpretation. No provision of this Agreement will be interpretcd in favor of, or against,
any of the parties hereto by reason of the extcnt to which any such party or its counsel
participated in thc drafting thereof or by reason of the extent to w'hich any such provision
is inconsistent with any prior drall hereof or thereof.
Counterparts. This Agreement rnay be exccuted in any number of counterparts, each of
which shall bc dcerned an original and all of nhich, taken together, shall constitutc a
single document.
Notices. All notices, demands. requests or other communications required or permitted
to be given hcreunder .shall be deemed delivered and received upon actual receipt or
refusal to receive same, and shall be made by tJnited States certified or registered mail.
return receipt requestcd or by hand delivery, and shall be addrcssed to the respective
parties at the addresses set forth in the preamble to this Agreement.
Entire Agreement. This Agreement constitutes the cntire agreement betu'een the parties
hereto relating in any marulcr to the subject matter of this Agrccment. No prior
agreement or understanding pertaining to same shall bc valid or of any force or effect,
and the covenants and agreements herein contained cannot be altered, changed or
supplemented except in w'riting a signed by the parties hereto.
Severability. if any olause or provision of this Agreement is deemed illegal, invalid or
unenforceable under prescnt or future larvs effective during the tenn hereof, then the
validity of the remainder of this Agreement shall not be affected thereby and shall be
legal, valid and enforceable.
12.
13.
14.
15.
16.
17.
546
lN WITNESS WI'IEREOF, the parties hereto have executed this Easement as of the date tirst sct
forth above.
SIGNATURE PAGES TO F'OLLOW
547
WITNESSES:GRANTOR:
CITY OF MIAMI BEACH, FLORIDA"
A municipal corporation of the Statc of Florida
tsy:
Sign Name: Philip Levine
Title: Mayor
Print Name
Sign
Print Name
ATTEST:
Bv:
Name: Rafael E. Granado
Titlc: Cit-v Clerk
STATE OF FLORIDA )
COUNTY OI, MIAN4I-DADE )
The fbregoing instrument was acknowledged before me this dry of
_,2015, by Phiiip Levine. as Mayor, and Rafael E. Granado, a-s City Clerk. of thc
CITY OF MIAMI BEACH, FLORIDA. a municipal corporation of the State of Florida, on
behalf of such municipal corporation. They are personally known to mc or produced valid
Florida driver's licenses as identification.
Notary Public. State of Florida
My commission expires:
548
WITNESSES:GRANTEE
BETSY ROSS OWNER. LLC,
A Delaware limited liability compan-y
Bv:
Namc:
Title:
Sign
Print Name
sis,
Print Name
STA|E OT. FLORIDA )
)ss:
couNl'Y oF MIAMI-DADE )
The foregoing instrument was acknolvledged befbre me this day of
,2015, by ,3S of BETSY ROSS OWNER, LLC. a
Delaw,are limited liabilit-v company. IIe is personally known to me or produced valid Florida
driver's licenses as identification.
Notary Public, State of Florida
My commission expires:
549
QUALIFICATIONS OF APPRAISER
ANDREW H. MAGENHEIMER, MAI
EDUCATION:
Bachelor's Degree, The University of the South, Sewanee, Tennessee. 1986
EXPERIENCE:
Over twenty-five years in the field of real estate, involved in various forms of
consultation. appraisal, economic research and market analysis.
June, I 997 to Present, Principal, Slack, Johnston & Magenheimer, Inc.
August. I 991 to May, 1997, Senior Appraiser, Slack & Johnston, Inc.
February, 1987 to July, 1991, StaffAppraiser, Dixon & Friedman, Inc.
GENERA,L APPRAISAL EXPERIE NCB:
Appraisals - Vacant land. environmcntally sensitive land, aviation facilities, industrial
facilities, shopping centers. office buildings, apartment buildings. residential
developments and single-family residences.
Consulting - Economic research, market analysis, f'easibility analysis and ad valorem real
estate tax assessment appeals pertaining to industrialo commercial and residential
properties.
Litigation Support - Appraisals and consulting, including expert testimony, concerning
various property types.
AFFILIATIONS:
Licensed Florida Real Estate Broker
Florida State-Certified General Real Estate Appraiser, Certification No. RZl073
Appraisal Institutc Member, N4AI, Certiticate Number 10133, Continuing Education
Completed
HLJD MAP Training
2002 President ol the South Florida Chapter of the Appraisal [nstitute
550
RICK SCT}TT, GOVEfr!4Oft
The CERTIFIED
KEN TAIA&ON. SESRXTAfiY
STAIE QFFLCIN'P*
PSpARTI'*HT AF EugllilE*$ &N0 PROFE$SIOXAL RrSULAIIOI{
FLOFHOA XE*L ESTATE *FFRAISIL EA
!*errlad bxtp* lS CERTlflEA
Uilder *r r{evilions aiehapt*r d75 FS
Expiration date NOV 30, 2016
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