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2004-25650 Reso RESOLUTION NO. 2004-25650 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING A SETTLEMENT AGREEMENT BY AND AMONG EAST COASTLINE DEVELOPMENT, LTD., WESTSIDE PARTNERS, LTD., AND OTHER ENTITIES COLLECTIVELY KNOWN AS THE "PORTOFINO ENTITIES," AND CERTAIN SUCCESSORS IN INTEREST THAT ARE PART OF THE RELATED GROUP OF FLORIDA, KNOWN AS THE "RELATED ENTITIES," AND THE CITY OF MIAMI BEACH AND THE MIAMI BEACH REDEVELOPMENT AGENCY, CONCERNING LITIGATION OVER CERTAIN PARCELS IN THE SOUTH POINTE AREA OF MIAMI BEACH KNOWN AS THE ALASKA PARCEL, GOODMAN TERRACE, THE HINSON PARCEL, BLOCKS 51, 52 AND BLOCK 1, AND INCLUDING A PORTION OF THE FEDERAL TRIANGLE, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SUCH AGREEMENT, AND THE TAKING OF NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF. WHEREAS, East Coastline Development, Ltd. ("East Coastline") and West Side Partners, Ltd. ("West Side"), among others (collectively known as the "Porto fino Entities"), have initiated litigation against the City of Miami Beach (the "City") and the Department of Community Affairs in various actions respectively claiming damages and rights under the Bert J. Harris, Jr. Private Property Rights Protection Act, other civil rights violations and other relief in Circuit Court Case No. 98-13274 CA 01(30), and United States District Court Case No. 01- 4921-CIV-Moreno, and Florida Division of Administrative Hearings Case No. 02-3283GM (the "Lawsuits"); and WHEREAS, the Porto fino Entities have conveyed certain parcels involved in such litigation to certain entities that are part of the Related Group of Florida (collectively known and referred to as the "Related Entities"); and WHEREAS, the City Commission on February 25, 2004 approved in concept, a settlement of the Lawsuits proffered by the Porto fino Entities and the Related Entities, which conceptual settlement is set forth in a Term Sheet attached to Resolution 2004-25509, as amended since such resolution to reflect the intent and agreement of the parties; and WHEREAS, the City, the Porto fino Entities, the Related Entities, and the Miami Beach Redevelopment Agency, wish to avoid the expense, delay, and uncertainty of lengthy litigation, and to resolve such proceedings under the terms set forth in the Term Sheet, which terms are set out in detail in the attached Settlement Agreement, agree it is in their respective mutual best interests to enter into the Settlement Agreement. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: That the City Commission hereby approves the Settlement Agreement, in substantially the form attached hereto as Exhibit "A," however, Exhibits to the Settlement Agreement are subject to the review and approval of the City Attorney; the Mayor and City Clerk are hereby authorized to execute such Agreement on behalf of the City, and the City Manager and City Attorney are authorized to take such actions as are necessary or appropriate consistent with the intent of this resolution to implement the provisions of the Settle n A eement. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED this28thday of ATTEST: )z.~~.. E-" ){(~ t CITY CLERK (f APPROVED AS TO FORM AND LANGUAGE & FOR EXECUTION 1tI~ CITY ATTORNE~ <t- 2--oY DATE T:\AGENDA \2004\Ju12804\RegularlPortofino Settlement Agreement adoption reso.rev.DOC CllY Of MIAMI BEACH COIltMISSION ITEM SUMMARY m Condensed Title: A Resolution approving a Settlement Agreement by and among East Coastline Development, LTD., Westside Partners, LTD., and other entities collectively known as The "Portofino Entities," and certain successors in interest that are part of the Related Group of Florida, known as the "Related Entities," and the City of Miami Beach and the Miami Beach Redevelopment Agency, concerning litigation over certain parcels in the South Pointe area of Miami Beach known as the Alaska Parcel, Goodman Terrace, the Hinson Parcel, Blocks 51,52 and Block 1, and including a portion of the Federal Triangle, and authorizing the Mayor and City Clerk to execute such Agreement, and the taking of necessary and appropriate steps for the implementation thereof. Issue: Shall the Mayor and City Commission adopt the resolution authorizing execution of the Settlement Agreement, approving the Concept Plan, in settlement of litigation? Item Summa IRecommendation: The attached Resolution contemplates the approval of a Settlement Agreement, which the Administration and City Attorney's Office have negotiated, subject to certain approvals, based upon the Term Sheet and the attached Concept Plan. In today's agenda, consistent with the Concept Plan, there are various amendments to the Land Development Regulations and the Comprehensive Plan, collectively, which are necessary to implement the terms of the Settlement Agreement. The Concept Plan for the AlaskalGoodmanlHinson parcels and Blocks 1, 51 and 52 is attached and will set forth the framework and govern certain elements pertaining to the future development of the parcels. The Settlement Agreement also addresses: Conditions of Approval; Conveyance of Alaska; Conveyance of the Federal Triangle; Boat Basin; Baywalk & Seawall; Washington Avenue Extension; Block 51; Block 1; Deceleration Lane; Cit Gara e or other Public Facilit ; and South Easement Area. Financial Information: Source of Funds: D Finance Dept. Ci Clerk's Office Le islative Trackin Christina M. Cuervo Si n-Offs: ( T:\AGENDA\2004\JuI2804\Regular\Portofino Settlement Agreement adoption sum.DOC AGENDA ITEM DATE Rl~ 1-221-0'1 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Date: July 28, 2004 Members of the City Commission Jorge M. Gonzalez ~ tl"C-.;--~/ City Manager 0 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING A SETTLEMENT AGREEMENT BY AND AMONG EAST COASTLINE DEVELOPMENT, LTD., WESTSIDE PARTNERS, LTD., AND OTHER ENTITIES COLLECTIVELY KNOWN AS THE "PORTOFINO ENTITIES," AND CERTAIN SUCCESSORS IN INTEREST THAT ARE PART OF THE RELATED GROUP OF FLORIDA, KNOWN AS THE "RELATED ENTITIES," AND THE CITY OF MIAMI BEACH AND THE MIAMI BEACH REDEVELOPMENT AGENCY, CONCERNING LITIGATION OVER CERTAIN PARCELS IN THE SOUTH POINTE AREA OF MIAMI BEACH KNOWN AS THE ALASKA PARCEL, GOODMAN TERRACE, THE HINSON PARCEL, BLOCKS 51,52 AND BLOCK 1, AND INCLUDING A PORTION OF THE FEDERAL TRIANGLE, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SUCH AGREEMENT, AND THE TAKING OF NECESSARY AND APPROPRIATE STEPS FOR THE IMPLEMENTATION THEREOF. RECOMMENDATION Adopt the Resolution. ANALYSIS East Coastline Development, Ltd. ("East Coastline"), West Side Partners, Ltd. ("West Side"), among others (collectively "the Portofino Entities"), initiated litigation against the City of Miami Beach (the "City") and the Department of Community Affairs, in various actions respectively claiming damages and rights under the Bert J. Harris Private Property Rights Protection Act, other civil rights violations and other relief in Florida Circuit Court Case No. 98-13274 CA 01 (30), and United States District Court Case No. 01-4921-CIV-Moreno, and Florida Division of Administrative Hearings Case No. 02-3283GM. Some of the properties at issue in the litigation have been conveyed to one or more companies that are part of The Related Group (the "Related Entities"). The Mayor and City Commission have heretofore approved a "Term Sheet," settling in concept the above litigation, by Resolution No.2004-25509, adopted on February 25,2004 and finalized on March 8, 2004 (copy attached). Pursuant to the Term Sheet, the Related Entities and Portofino Entities have participated in a collaborative process including neighborhood residents and representatives, City staff, and consultant Alex Cooper, to prepare a Concept Plan to implement the settlement terms. On May 26, 2004, the City Commission referred the Concept Plan to the Design Review Board and Planning Board, July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 2 of 9 for review and recommendation. The City Commission further authorized the Administration to execute owner affidavits for those applications filed pursuant to the Term Sheet that involve City-owned land. The attached Resolution contemplates the approval of a Settlement Agreement, which the Administration and City Attorney's Office have negotiated, subject to certain approvals, based upon the Term Sheet and the attached Concept Plan. In today's agenda, consistent with the Concept Plan, there are various amendments to the Land Development Regulations and the Comprehensive Plan, collectively, which are necessary to implement the terms of the Settlement Agreement. Additionally, as directed on May 26,2004 by the City Commission, the Planning Board and the Design Review Board have reviewed the settlement and have provided the following comments to the City Commission relative to the Concept Plan and accompanying Land Development Regulation amendments, and unanimously recommended approval of the settlement. PLANNING BOARD ACTION The Board reviewed the items related to the Portofino-Related settlement agreement on June 22, 2004 and had the following comments: Summary of Board Comments: . Allowing upzoning with a trade of land is in the best interest of the City and mitigates the density increase in other places. . Concerned about the height of Block 1 as it creates an inconsistency with the rest of the neighborhood. The massing should be at Collins and South Pointe Drive and not distributed throughout the entire block. . Boat basin - filling or leaving as is needs to be looked at again when there is a cohesive plan for the park. . With respect to commercial uses, there is an anomaly at the base of Portofino Tower if nothing else happens. Some consideration should be given to placing a transitional element at the corner of South Pointe and Alton Road. . The pedestrian access to the waterfront through Murano should be enhanced to work more like a public access and not a private road. . There should be a transitional use between the pedestal and the park. Residential uses are preferred. Would like to see limited concessionary uses in the park. . Park uses should not be micromanaged. Important to realize the land trade; there should not be large scale commercial uses in the park. . When the park design and its programmatic uses have been developed, the plan should be brought back to the Planning Board for review. July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 3 0'9 Points of consensus: . Importance of land swap to create bigger corridor next to basin. . Need to redistribute heights and FAR in Block 1 and deal with open court regulations. The open courtyards in concept plan do not enhance the design of structures. . City's use of development rights at the park's edge should be limited to civic uses and perhaps very limited concessions that are accessory to park uses (rest rooms, roller blade rental, water). . Need for some transitional element between pedestal and the park. Points of less unanimity: . Re-consider distribution of uses on Block 51, in particular uses on Commerce Street, massing and revisiting open court regulations. . Limited commercial uses along South Pointe Drive on Goodman/Hinson. Individual concerns: . Closing alley on Block 1 . . Public access from Alton Road to the park. . Commercial development on Block 52. Motion: Summarize comments, create a model that shows massing of the concept plan and recommend approval of proposed settlement agreement. Unanimously approved 5-0. DESIGN REVIEW BOARD COMMENTS The following is a summary of the comments given by the Design Review Board at the June 15, 2004 meeting regarding the South Pointe Concept Master Plan. Regarding the City's portion of the Alaska Parcel: . All members were strongly opposed to filling in the Boat Basin. . The Boat Basin is a valuable amenity. . There was a strong consensus against commercial development. . Available space should be used for a park and green space amenities. Regarding the developer's portion: . Residential uses are preferred, with the exception of an accessory restaurant. . The placement of residential uses on the south side of the parking structure on the Alaska Parcel facing the park is not desirable. . Architectural development of the parking garage elevations is the preferred method to screen the parking on the Alaska Parcel. July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 4 of9 . The safety of the public must be addressed regarding the dead end alley which will be created on Block 1. . The vehicular bridge connection created on Block 51 is not desirable. City Commission Action - Julv 7.2004 On July 7, 2004, the City Commission discussed the proposed Settlement Agreement, reviewed the actual model that shows the massing of the concept plan and provided the following comments and direction relative to the proposed Concept Plan: 1. Issue: Action: 2. Issue: Action: 3. Issue: Action: 4. Issue: Action: 5. Issue: Action: 6. Issue: Action: Remove residential on Alaska from MR in proposed zoning ordinance Amend LDRS and Compo Plan text to remove "residential" Options for Related's 9000 +1- sf (buildable sq. ft.) from Alaska City Commission approved Option 2 which transfers the 9,000 :!:. sf from the commercial SE corner of the pedestal and places it within the residential tower on Goodman and Hinson and Related will deed an additional 7,100 sf of Alaska to the City. Massing and height on Block 1; Discussion on potential transfer of density from the northern half of Block 1 to the Southern half of Block 1, and moving FAR to SW corner of Block 1, thereby impacting potential height of structure and increasing it from 75 feet to almost 150 feet. This issue was referred back to the collaborative neighborhood planning process for further discussion. Eliminate courtyards for Block 1, 51,52 (Section 142-699 (c)) City Commission agreed. Residential or Commercial on Ground Floor of Block 51 and Block 1 This issue was referred back to the collaborative neighborhood planning process for further discussion. Cladding of pedestallgarage - Time RFP to allow construction of City improvements by Related during its staging. This issue will be discussed as part of the planning process involved in the South Pointe Park RFQ and the City will negotiate timeframe with developer regarding the submittal of a concept plan for developer to construct certain improvements. Summary of Collaborative Plannina Process relative to Concept Plan: As provided for in the Term Sheet approved by the parties on February 25, 2004, and finalized on March 8, 2004, the Concept Plan was to be developed in coordination and collaboration with Neighborhood Representatives. Meetings were held with the Developer and Neighborhood Representatives on March 31, April 7, May 20, June 14, 22, 28 and July July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 5 0'9 12,2004, in addition to public review at the Design Review Board on June 15,2004 and at the Planning Board on June 22, 2004. As initially reported on July 7, 2004 to the City Commission, and based on further input received on July 12, 2004 at the Collaborative Planning Meeting, the Concept Plan has been further revised and reflects the following: Goodman/H insonl Alaska: A rounded footprint of the tower and pedestal to be constructed on Goodman/Hinson/Alaska, that allows for an expanded setback of 70 feet from and retention of the boat basin. At the July 7,2004 meeting, the Commission addressed the two options described below and approved (b), which was described during the meeting as Option #2: a) the Developer retains the 9,500 square feet.:!:. on the Alaska parcel as permitted marine recreational use to be located at the south side of the tower's parking pedestal, deeding the originally contemplated 80,450 sf of the Alaska parcel to the City, or b) implement the preferred neighborhood option which is to re-allocate the 9,500 square feet of FAR on Alaska to be included in the developable FAR within the tower to be constructed on GoodmanlHinson as residential use (less sf needed for the pedestal), (resulting in an increase width of 3 ft on each side of the building) i.e. increasing the permitted FAR from 296,000 square feet to 305,500 square feet, without any increase in the height of the proposed building, and thereby eliminating the 9,500 square feet of potential commercial use by the Developer within its retained portion of the Alaska parcel. In this scenario, the Developer would then increase its contribution of land to the City by an additional 7,100 square feet for a total of approximately 87,550 square feet of land to be deeded to the City. With this option, the City still retains its development rights for approximately 28,000 square feet of FAR within Alaska; such uses to be determined as part of the planning process for the design and development of South Pointe Park. Block 1,51 & 52: As reported on July 7,2004, the DRB and Planning Board also commented on massing concerns on Block 1 and Block 51 and they discussed the activation of the ground floor (or facades) facing Commerce Street on Block 51 and Collins Avenue on Block 1. The neighborhood sentiment is to limit any further commercialization of the area. As reported above, on July ih the City Commission referred back to the collaborative neighborhood planning process for further discussion, the massing on Block 1 and the activation of the ground floor space on Block 51 and Block 1. July 28, 2004 City Commission Memorandum Porlofino Settlement Agreement Page 6 of 9 At a July 12, 2004 meeting, Neighborhood Representatives participating in the Collaborative process, provided the following comments: . Height on Block 1 - it was unanimously preferred to maintain the maximum height at 75 feet. . Commercial uses on the ground floor of Block 1 and 51. The stated preference of the residents participating in the Collaborative process was not to have any retail uses on the ground floor by a very slight majority (7-6). . A secondary position was to allow commercial uses in the following areas - Block 1, facing South Pointe Drive; Block 51, from Washington Avenue up to the residential entrance on South Pointe Drive (approximately 2/3 of the way to Alton Road). As a result, the recommended Concept Plan reflects the following changes as a result of the collaborative planning process: Massinq on Block 1 Recommended Action: The Concept Plan reflects the terms of the original agreement which provides for the Height limit to not exceed 40 ft. fronting the street (actual concept plan reflects approximately a 30 ft. height fronting the street) and stepping up to 75 ft for that portion of the structure that provides a 20 ft. setback, above the 40 ft height, from the property line. Commercial UseslActivation of Ground Floor on Block 1 and Block 51 Recommended Action: The Concept Plan reflects retail/commercial uses fronting South Pointe Drive on Block 1 and on Block 51 fronting South Pointe Drive, from Washington Avenue to the residential entrance on that block face. This allows for a continuation of these uses as they currently exist at the base of Portofino Tower and the Joe's Stone Crab Restaurant and the commercial uses planned for in the Continuum project, east of Washington Avenue along South Pointe Drive. Service delivery access was a prime concern of area residents and will be addressed during Design Review process to assure minimal impacts on the street and arising from commercial deliveries. SETTLEMENT AGREEMENT TERMS: The Settlement Agreement specifically provides for the following: Conditions of Approval: Final Approvals will be deemed to have been granted once all development approvals have been obtained and are no longer subject to appeals, but in no event later than December 24, 2004. The Concept Plan must be approved by September 30, 2004, and the Development Approvals granted no later than October 15, 2004. Each of these dates provides a termination date for the parties if not satisfied. Each of these dates may be extended by Portofino and Related. July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 70f9 Conveyance of Alaska: The Developer will deed approximately 87,550 sf of Alaska to the City, based upon the City Commission's acceptance of the Option 2 scenario described above. The Developer will retain a construction staging easement and a 15 foot maintenance easement and underground encroachment easement. The City will obtain a cladding easement permitting the City to berm up to and landscape the southern fac;ade of the Developer's parking pedestal andlor connect any desired public improvement, an underground encroachment easement and a $10,000,000 title policy. The City has the right, but must absorb the cost, to remove temporary cladding on the southern fac;ade of the pedestal if it wants to construct improvements attached to the pedestal. Furthermore, the Settlement Agreement provides that the City's use ofthe Alaska Property shall be limited to uses permitted by the "MR" (Marine Recreation) zoning category as it exists on the date of approval of this Agreement. The City may erect, construct, create and locate such improvements on the Alaska Property and on the Federal Triangle Property, provided the height of such improvements does not exceed the finished floor elevation of the pool deck, as measured from grade, on the roof of the garage to be constructed on the TRG Alaska Assemblage Property. Conveyance of the Federal Trianqle: The original settlement terms contemplated the City deeding approximately 3,150 sf of the Federal Triangle in exchange for the Developer deeding approximately 3,150 sf of additional land from Alaska, subject to Federal Government approval. At this time, based on the Concept Plan, the Developer will only require approximately 450 sf of the Federal Triangle and a like amount will be deeded to the City, which is reflected in the attached Concept Plan. The Settlement Agreement presented on July 7, 2004 provided for "not more than 4,178 sf' of property from the Federal Triangle being deeded in exchange for an equal amount of land from Alaska, to afford the parties the maximum flexibility during the Neighborhood collaborative planning process to finalize the Concept Plan. However, as previously stated, not more than 450 sf will be exchanged based on the attached Concept Plan. Additionally, the Federal Government has preliminarily indicated its favorable consideration of the proposed exchange. Boat Basin: The original settlement terms contemplated the Parties would evaluate the navigability of the Boat Basin to determine whether it should be retained. At this time, and based upon input during the collaborative planning process, the attached Concept Plan reflects the boat basin being retained and providing a 70 foot set back to the Developer's improvements. The Settlement Agreement still reflects the Developer's affirmative action to pursue approvals to fill in andlor bridge over the existing boat basin and the City's cooperation in connection therewith. Work on the boat basin cannot proceed without the written approval of the City Manager, and along with the Alaska conveyance, Related will convey rights to all boat basin permits. It is anticipated that any such decision regarding the boat basin will be made at the time of the City undertaking a separate planning process for the design and development of South Pointe Park and the portion of the Alaska parcel deeded to the City. Bavwalk & Seawall: As contemplated in the original settlement terms, the Developer will July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 80'9 construct a baywalk across the waterfront edge of the Alaska and Federal Triangle and Hinson parcels. The City must submit design guidelines within 12 months of the date of this Agreement for said improvements to be constructed no later than the TCO for the tower to be built on Goodman and Hinson or the Developer will provide a performance bond to the City to guarantee completion of the baywalk and seawall work, to be completed within 12 months from the date of permit issuance. Washinqton Avenue Extension: As contemplated in the original settlement terms, the Developer will deed approximately 42,000 sfofthe Washington Avenue Extension before a building permit is issued for the residential tower to be developed on GoodmanlHinson, subject to a covenant to rebuild for FAR and setback purposes. Block 51: As contemplated in the original settlement terms, the City will convey the end lots comprising approximately 7,726 sf to the Developer, allow for a bridging over the alley, permit required parking up to 75 spaces for the Shops at Portofino (not to exceed 2.0 FAR), and required parking for the Ramos lots pursuant to a covenant-in-lieu of unity of title. Block 1: The Development Approvals, in Exhibit C to the Settlement Agreement, and necessary to make the Settlement Agreement effective, include reference to the vacation of Ocean Court south of Lots 4 and 14. A separate agenda item authorizes the conveyance and vacation of the public alleyleasement, pursuant to the requirements of Section 82-39 of the City Code, in favor of Sun & Fun, Inc. and Portofino Real Estate Fund, Ltd. Deceleration Lane: Subject to obtaining the appropriate regulatory approval, the Developer will construct, at its sole cost and expense, a deceleration lane at the south side of 1-395 as it intersects with the west side of Alton Road which will provide for (i) an eastbound right- turn lane on Fifth Street at the Alton Road intersection, (ii) dual northbound left-turn lanes on Alton Road at Fifth Street intersection, and (Hi) modification of signalization at the Fifth Street/Alton Road intersection to compliment the foregoing turn lanes pursuant to (ii) and (iii) above, as required. Such work will be completed (A) prior to issuance of a final CO for the ICON building if all regulatory approvals and permits are given by no later than October 1, 2004, otherwise (B) within 12 months after the granting of such approvals and permits. The Related Entities shall seek such regulatory approvals in good faith with due diligence. Concept Plan: The Concept Plan for the Alaska/Goodman/Hinson parcels and Blocks 1, 51 and 52 is attached and as described above. The final approved Concept Plan will be attached to the Settlement Agreement and will set forth the framework and govern certain elements pertaining to the future development of the parcels. City Garaqe or other Public Facilitv: Within 12 months of the date of this Settlement Agreement or 2 months after the issuance of a building permit for the project on GoodmanlHinson parcel, whichever is later, the City may develop and submit to Related a concept plan for public parking andlor other public facilities within South Pointe Park or upon Alaska that the City desires the Developer to construct at its cost, and City expense. July 28, 2004 City Commission Memorandum Portofino Settlement Agreement Page 9 0'9 DRI: Within 90 days after issuance of final CO's, the Developer will amend the DRI to reflect the as built status of the properties and release any remaining unused trips attributable and reserved pursuant to the DR!. The original DRI Development Order and agreement for fair share contributions will remain in full force and effect, except as amended by the addition to the DRI of land acquired since the approval of that order. South Easement Area: Additionally, the Settlement Agreement includes the Developer's conveyance of the south 100 feet of the 150 foot Easement Property referenced in the 1998 Settlement Agreement, "Grant of Easements", to the City. This property is located within SSDI-North, just north of the Marina property and south of the Murano Grande condominium. CONCLUSION The Administration recommends approving the Settlement Agreement substantially on the form attached, subject to approval of legal description by the City Attorney and Public Works Department, and attached Concept Plan by and among East Coastline Development, Ltd., Westside Partners, Ltd., and other entities collectively known as the "Portofino Entities," and certain successors in interest that are part ofthe Related Group of Florida, known as the "Related Entities," and the City of Miami Beach and the Miami Beach Redevelopment Agency, concerning litigation over certain parcels in the South Pointe area of Miami Beach known as the Alaska parcel, Goodman Terrace, the Hinson parcel, blocks 51, 52 and block 1, and including a portion of the Federal Triangle, and authorizing the Mayor and City Clerk to execute the Agreement and all necessary documents to effectuate the terms of the Settlement. JMG/~/GMH/rar T:\AGENDA\2004\JuI2B04\Regular\Portofino Settlement Agreement adoption memo.DOC PORTOFINO/RELATED - crrv OF MIAMI BEACH FINAL TERM SHEET MARCH 8, 2004 1. GoodmanlHinsonlAlaska a. Alaska Zoning remains MR; FAR remains .25; Height limit remains at 40 ft. (for the portion of Alaska retained by the Developer and for the portion of Alaska deeded to the City) and Developer will permit City to clad the Parking Pedestal on the southern facade of the garage with a use chosen by the City. b. Developer will deed to City approximately 80,450 sq. ft. of Alaska (excluding Washington Avenue Extension) as shown on attached map prepared by Cooper, Robertson & Partners. c. GoodmanlHinson zoning remains CPS-3; Amend LDRs to change FAR to permit 296,000 sq. ft. of buildable sq. ft., from approximately 2.5 to 3.1 (subject to final surveys), in this property in the CPS-3 district. FAR prior to downzoning was 3.5 which would have permitted approximately 335,000 SF. d. Tower siting and massing subject to Concept Plan being developed and approved by the parties. e. Developer will provide Street Level Retail fronting South Pointe Drive, subject to concept plan. f. City will modify regulations for MR district or other regulations, or otherwise allow (i.e. covenant in lieu of Unity of Title) required parking on the northern 120' of Alaska adjacent to the southern Goodman/Hinson property line for benefit of Goodman & Hinson Tower. g. The City may elect to proceed with parking garage or some amount of retail servicing the Baywalk on its portion of Alaska, up to .25 FAR, which is approximately 28,000 sq. ft., which may clad the Parking Pedestal. The City and Public may proceed to implement a preferred concept plan such as plan presented by Cooper, Robertson & Partners, to create a unified park (i.e. portion of Alaska deeded to City joined with portion of Washington Avenue Extension and South Pointe Park west of S&W), with other programmed uses. h. Developer may incorporate commercial accessory uses to clad the Parking Pedestal on the east andlor west garage frontages, on its portion of Alaska, the floor area for such commercial accessory use will be limited to .25 FAR, or approximately 9,000 sq. ft. less the floor area required for the Developer's project on its portion of Alaska. i. Height on GoodmanlHinson will not exceed 270 ft. and if concept plan allows, height may be increased to 300 ft. 2. Federal Trianqle a. If Developer obtains Federal Government approval, the City will deed to Developer approximately 3,150 sq. ft. of Federal Triangle and the Developer will deed to City approximately 3,150 sq. ft. of Alaska. b. Remaining depth of Federal Triangle land along the water, owned by the City, will be approximately 110ft. but will be subject to final concept plan. c. Portion of Federal Triangle deeded to Developer will be allowed for parking and cladding d. All conveyances of the Federal Triangle are subject to any and all Federal Government approvals, which Developer will diligently pursue and City will cooperate. e. In the event the City is unable to deed the portion of the Federal Triangle to the Developer, then to facilitate the development, and subject to Federal Government approval, i. there will be no required set-backs from the Federal Triangle onto GoodmanlHinsonlAlaska, based on a Covenant in Lieu of Unity of Title, and ii. the Developer will be allowed to drive across the surface with no structure overhead. 3. Bavwalk/Boat Basin a. Developer is pursuing permit approval to fill in Boat Basin. If Boat Basin cannot be filled in or bridged over, then an additional 25 ft. set back around the eastern end of the boat basin will be deeded to City to preserve the continuity of the Baywalk. Parties will evaluate the navigability of the Boat Basin. Exhibit uAu b. Developer will construct, at Developer's direct cost and expense, all shoreline restoration work, including filling in or bridging the Boat Basin area, seawall construction and Baywalk improvements and furnishings from South Pointe Park to Murano at Portofino. 4. Washinaton Avenue Extension The Washington Avenue Extension (42,000 sq. ft.) will be deeded to the City, at City's option, and if option is exercised, the Washington Avenue Extension Easement Dedication Agreement will terminate subject to a covenant to rebuild for FAR and Setback purposes. 5. Blocks 51/52 a. Zoning remains CPS -1; FAR increased from 1.0 to 1.5, which is less than the 2.0 FAR that was in effect prior to down zoning in 1998. Height limit remains 75 feet. b. On Block 51, City agrees to allow Developer to bridge over the alley to access parking on the north side of Block 51. c. City will deed and allows Developer to build on the corner lots the City owns on the south side of Block 51 at an FAR of 1.5. d. Developer shall have right to develop the required parking for Shops at Portofino on Block 51, with a restrictive covenant. This parking will correspond to any increased FAR between 1.5 and 2.0 on Block 51. 6. Block 1 a. Zoning remains CPS-1. FAR increased from 1.0 to 2.0, which is the FAR that was in effect prior to the down zoning in 1998. Height limit remains at 40 ft. fronting the street and steps up to 75 ft. for that portion of the structure that provides a 20 ft. setback, above the 40 ft. height, from the property line. b. Retail andlor residential will be built fronting Ocean Drive and parking will be built fronting Collins Avenue. Building and parking will be subject to Concept Plan being developed and approved by the parties. c. In order for more efficient parking structure andlor potential open space, the City will vacate the southern portion of the alley and may evaluate vacating the entire alley, subject to agreement by any 3rd party owners, which will be counted and included as part of Developers development rights at 2.0 FAR. 7. Seauencino & Miscellaneous a. All land areas specified herein are subject to verification by a current, accurate survey. b. Upon completion of all improvements on Block 51, 52, GoodmanlHinson, and Alaska Developer will amend DRI to reflect as built condition. c. If excess parking for the Public proves feasible (which will not count against Developer FAR) within any of the aforementioned parking structures, Developer will construct such Public Parking at Developer cost and City expense. d. Concept Plan will be developed in coordination and collaboration with Neighborhood representatives. 8. Other Developer Obliaations. at Developer's sole cost and expense a. Developer will construct the deceleration lane at 5th & Alton. b. Developer will pay for the cost of City's consultant to develop Concept Plan reflecting agreement of parties. 9. Other Developer Obliaations. at City's sole cost and expense Developer will design build, at Developer's direct cost and at City's expense, City Improvements (TBD) utilizing Developer's architect, to be constructed concurrently with the tower to be constructed on GoodmanlHinson, including without limitation, a garage in the park or improvements on Alaska. F:\cmgr\$ALL\CHRIST1N\Portofino\2004 March 8 TERM SHEET Final.doc Page 2 of 2