2004-25727 Reso
RESOLUTION NO. 2004-25727
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND
AUTHORIZING THE CITY MANAGER TO EXECUTE A
MODIFICATION OF THE LETTER AGREEMENT BETWEEN
THE MIAMI BEACH REDEVELOPMENT AGENCY, THE CITY
OF MIAMI BEACH AND THE COURTS AT SOUTH BEACH
LIMITED, A FLORIDA LIMITED PARTNERSHIP F/K1A COBB
PARTNERS SOUTH BEACH LIMITED, DATED MARCH 25,
2003; SAID MODIFICATION EXTENDING THE CLOSING
DATE ON THE LIBRARY FACILITY TO DECEMBER 31,2004,
SUBJECT TO CERTAIN CONDITIONS AND LIMITATIONS
EXPRESSED THEREIN; AND FURTHER APPROPRIATING
$42,415.35 IN AVAILABLE SOUTH POINTE
REDEVELOPMENT AREA TRUST FUNDS TOVVARD
IMPROVEMENTS TO THE LIBRARY FACILITY.
WHEREAS, on February 26, 2003, the Chairman and Members of the Miami Beach
Redevelopment Agency (RDA) adopted Resolution 444-2003, authorizing the RDA to exercise
its option to purchase the 5,000 square foot space within ''The Courts" project (flk/a The Cobb
Project) and to contribute the facility to the City of Miami Beach for uses including a library and
such other public uses as permitted and as mutually agreed to by the parties (the Library
Facility); and
WHEREAS, on March 25, 2003, the parties also execised a Letter Agreement
Modification of Paragraph 4 of the Fourth Extension and Clarification Agreement between the
Miami Beach Redevelopment Agency, the City of Miami Beach, and the Courts at South Beach
Limited, a Florida limited partnership flk/a Cobb Partners South Beach, Ltd. (the "Parties"),
dated July 26, 2000 (the "Letter Agreement"); and
WHEREAS, the Letter Agreement sets forth the parameters for the RDA to exercise its
option to purchase the Library Facility and generally provides for the following:
. extending the timeframe for the closing of the transaction until September 2004,
instead of within 180 days of March 31, 2003;
. delaying payment of the first installment, in the amount of $27,500, until the closing
date in September, 2004, with each additional nine installments of $27,500 to be paid on
the anniversary date of the exercise of the closing of the transaction;
. allowing the Developer to remain in the Library Facility and continue its Sales Center
use until April 2004, provided that the Developer perform the retrofit/build-out of the 5,000
square foot space, which was to be completed by September 2004, at its sole cost; and
WHEREAS, on April 14, 2004, subsequent to extensive community input and support,
the RDA authorized the Administration to commit the 5,000 square foot space for use as a
Library Facility; and
WHEREAS, in accordance with the provisions of the Letter Agreement, the Developer
has proceeded to build out the Library Facility according to plans and specifications provided by
the Miami-Dade County Library System, which upon completion, will include a computer facility,
an expanded book collection, and a children's area for story-reading programs; and
WHEREAS, the Library Facility received a Temporary Certificate of Occupancy (TCO) on
October 1, 2004, but cannot obtain a full Certificate of Occupancy (CO), until the Library
System installs the shelving and furnishings, which is anticipated to occur during the first week
of December, 2004; and
WHEREAS on September 23, 2004, the Parties determined that due to conflicting
schedules during the last week of September and first week of October, 2004, it would be within
the best interest of the parties to extend the closing date to a mutually acceptable date in the
future; and
WHEREAS, the City and RDA Administration recommend extending the closing date to
no later than December 30, 2004; and
WHEREAS, the City and RDA Administration recommend approving the attached Letter
Agreement, which serves to modify and amend the understanding between the Parties with
respect to the closing provisions stipulated on Page 2, Paragraph 7 of the Letter Agreement,
dated March 25, 2003, as follows:
. the extension of time for closing the transaction is granted so that closing may occur
no later than December 30, 2004, instead of September 30, 2004;
. the Developer acknowledges and agrees it will remain responsible for obtaining final
CO upon Miami-Dade Library System's placement of furnishings within the premises,
anticipated to occur around December 1, 2004;
. closing of the transaction shall be contingent upon completion of improvements to
the Library Facility by the Developer and obtaining a final CO; and
WHEREAS, the Developer has furnished the RDA with a breakdown of costs and back-
up for the build-out of the Library Facility, totaling $112,858.35; and
WHEREAS, while the retrofit/build-out of the Library Facility was the sole responsibility of
the Developer, the scope was only to include demolition of the demising walls, installation of
electrical lines, lighting, sprinklers, HV AC and conduits with pull strings for computer and data
lines; and
WHEREAS, in order to finish the Library Facility to meet the Library System's criteria as
well as to address certain code and regulatory requirements, the Developer had to exceed the
defined scope and is seeking reimbursement for this work, in the amount of $27,215.25; and
WHEREAS, pursuant to the terms of the Letter Agreement, the design, preparation of
construction documents and permitting costs are the obligation of the RDA, at a total cost of
$15,200.10; and
WHEREAS, the Administration recommends appropriating a total of $42,415.35 from
available South Pointe Redevelopment Area Trust Funds, to reimburse the Developer for costs
related to the build-out of the Library Facility.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve and authorize the City Manager to execute a Modification of the
Letter Agreement between the Miami Beach Redevelopment Agency, the City of Miami Beach
and the Courts at South Beach Limited, a Florida Limited Partnership, flk/a Cobb Partners South
Beach Limited, dated March 25, 2003; said Modification extending the closing date on the
Library Facility to December 31, 2004, subject to certain conditions and limitations; and further
appropriating $42,415.35 in available South Pointe Redevelopment Area Trust Funds toward
improvements to the Library Facility.
PASSED AND ADOPTED this 13th day of October, 2 04.
ATTEST:
~-ffCLtdw-
CITY CLERK
t:\Agenda\2004\Oct13\Courts _COM .res.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
}O~'-OY
Date
CITY OF MIAMI BEACH
CITY COMMISSION ITEM SUMMARY
m
Condensed Title:
A Resolution consenting to a modification of the Letter Agreement between the RDA, the City of Miami
Beach and the Courts at South Beach, dated March 25, 2003, extending the closing date to December 31,
2004, subject to certain limitations and conditions and appropriating $42,415.35 in available South Pointe
Redevelo ment Area Trust Funds towards im rovements of the Iibra s ace.
Issue:
On February 26, 2003, Miami Beach Redevelopment Agency (RDA) adopted Resolution 444-2003,
authorizing the RDA to exercise it's option to purchase the 5,000 square foot space (the "Facility") within
"The Courts" project (f1k1a The Cobb Project) and to contribute the Facility to the City of Miami Beach for
uses including a library and such other public uses as permitted and as mutually agreed to by the parties.
The RDA Board further approved a Letter Agreement Modification of Paragraph 4 of the Fourth Extension
and Clarification Agreement (the Letter "Agreemenf') between the Miami Beach Redevelopment Agency, the
City of Miami Beach and the Courts (Developer), setting forth the parameters for the RDA to exercise its
option. Among the provisions of the Letter Agreement was an extension of time to close on the transaction
by September 30, 2004. Due to certain scheduling conflicts as well as remaining Certificate of Occupancy
issues, outside of the Developer's control, the parties have mutually agreed to extend the closing date to no
later than December 31, 2004. Staff has subsequently drafted a Modification to the Letter Agreement,
defining the terms for the proposed extension. A copy is included with the Commission Memorandum.
The Developer has also submitted a cost break-down associated with the build-out of the library space, for
which the Developer is seeking reimbursement for certain costs outside of the scope of work, totaling
$27,215.25, which the Administration has reviewed and considers reasonable. In addition, pursuant to the
Letter Agreement, the RDA must reimburse the Developer for costs associated with the design, preparation
of construction documents and permitting, totaling $15,200.10. The combined total due to the Developer is
$42,415.35.
Item Summary/Recommendation:
Adopt the Resolution.
Advisory Board Recommendation:
I
Financial Information:
Finance Dept.
Source of
Funds:
S. Pointe
TIF
Ci Clerk's Office Le islative Trackin
Christina M. Cuervo/Kent O. Bonde
T:\AGENDA\2004\Oct1304\RDA\Courts.sum.doc
AGENDA ITEM
R7H
IO-l3-0V
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miamibeachfl.gov
To:
From:
Subject:
COMMISSION MEMORANDUM
Mayor David Dermer and Members of
the Miami Beach City Commission Date: October 13, 2004
Jorge M. Gonzalez J f"V~
City Manager tJ
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, CONSENTING TO EXECUTE A
MODIFICATION OF THE LETTER AGREEMENT BETWEEN THE MIAMI
BEACH REDEVELOPMENT AGENCY, THE CITY OF MIAMI BEACH AND
THE COURTS AT SOUTH BEACH LIMITED, A FLORIDA LIMITED
PARTNERSHIP F/K1A COBB PARTNERS SOUTH BEACH LIMITED,
DATED MARCH 25, 2003; SAID MODIFICATION EXTENDING THE
CLOSING DATE ON THE LIBRARY FACILITY TO DECEMBER 31, 2004,
SUBJECT TO CERTAIN CONDITIONS AND LIMITATIONS EXPRESSED
THEREIN; AND FURTHER APPROPRIATING $42,415.35 IN AVAILABLE
SOUTH POINTE REDEVELOPMENT AREA TRUST FUNDS TOWARD
IMPROVEMENTS TO THE LIBRARY SPACE.
RECOMMENDATION:
Adopt the Resolution.
ANALYSIS:
On February 26, 2003, Miami Beach Redevelopment Agency (RDA) adopted Resolution
444-2003, authorizing the RDA to exercise it's option to purchase the 5,000 square foot
space (the "Facility") within "The Courts" project (flk/a The Cobb Project) and to contribute
the Facility to the City of Miami Beach for uses including a library and such other public
uses as permitted and as mutually agreed to by the parties. The RDA Board further
approved a Letter Agreement Modification of Paragraph 4 of the Fourth Extension and
Clarification Agreement between the Miami Beach Redevelopment Agency, the City of
Miami Beach, and the Courts at South Beach Limited, a Florida limited partnership flk/a
Cobb Partners South Beach, Ltd., dated July 26, 2000 (the "Letter Agreement"). The
Letter Agreement which was executed on March 25, 2003, sets forth the parameters for
the RDA to exercise its option and provided for the following:
. extending the timeframe for the closing of the transaction until September 2004, instead
of within 180 days of March 31, 2003;
. delaying payment of the first installment in the amount of $27,500 until the closing date
in September, 2004, with each additional nine installment of $27,500 to be paid on the
anniversary date of the exercise of the closing of the transaction; and
October 13, 2004
Redevelopment Agency Memorandum
Library at The Courts - Modification to Letter Agreement dated March 25, 2003
Page 2 of 3
. Allowing the Developer to remain in the facility and continue its Sales Center use until
April 2004, provided that Developer perform the retrofit/build-out of the 5,000 square
foot space, which is to be completed by September 2004, and at its sole cost,
estimated to be approximately $86,420.
On April 14, 2004, subsequent to extensive community input and support, the RDA Board
authorized the Administration to commit the 5,000 square foot facility for use as a Library.
Since this time, the Developer has proceeded to build out the space according to plans and
specifications provided by the Miami-Dade County Library System, which upon completion,
will include a computer facility, an expanded book collection, and a children's area for
story-reading programs.
On September 23, 2004, the RDA and the Developer determined that due to conflicting
schedules during the last week of September and first week of October, 2004, it would be
within the best interest of the parties to extend the closing date to a mutually acceptable
date in the future. On September 30,2004, a meeting was held on-site with the Developer,
representatives from the Library System and City staff to conduct a walk-through of the
space, which received a TCO on October 1, 2004. Although the space has been
completed, a full Certificate of Occupancy (CO), cannot be obtained until the Library
System installs the shelving and furnishings, which is anticipated to occur during the first
week of December, 2004. Once this happens, Accessibility can sign off on the permit.
Since the CO is not subject to a delay by the Developer, the Administration recommends
extending the closing date to no later than December 30, 2004. This will also preclude the
City from having to maintain the space until such time that the Library installs the
furnishings and the CO is granted.
Staff has subsequently drafted the attached Modification to the Letter Agreement, which
shall serve to modify and amend the understanding between parties with respect to the
closing provisions stipulated on Page 2, Paragraph 7 of the Letter Agreement. The
proposed modifications are as follow:
. The extension of time for closing the transaction is granted so that closing may be
delayed until no later than December 30, 2004, instead of September 30, 2004.
. Developer acknowledges and agrees it will remain responsible for obtaining final CO
upon Miami-Dade Library System's placement of furnishings within the premises,
anticipated to occur around December 1, 2004.
. Closing of the transaction shall be contingent upon completion of improvements to the
facility by the Developer and obtaining a final CO.
Pursuant to the terms of the Interlocal Agreement between the City of Miami Beach and
Miami-Dade County dated June 20, 1986, the City is responsible to "pay all costs to
relocate the library". As such, in March 2003, the City negotiated for the Developer to
complete a substantial portion of the retrofit required by the Library in exchange for an
extended closing date and their continued use of the space during said period.
Accordingly, the Developer has furnished the RDA with a breakdown of costs and back-up
for the build-out of the space, totaling $112,858.35, a copy of which is included with this
October 13, 2004
Redevelopment Agency Memorandum
Library at The Courts - Modification to Letter Agreement dated March 25, 2003
Page 3 of 3
memorandum. While the retrofit/build-out of the space was the sole responsibility of the
Developer, the scope was only to include demolition of the demising walls, installation of
electrical lines, lighting, sprinklers, HVAC and conduits with pull strings for computer and
data lines. However, in order to finish the space to meet the Library System's criteria as
well as to address certain code and regulatory requirements, the Developer had to exceed
the defined scope and is seeking reimbursement for this work, in the amount of
$27,215.25. This additional scope included installation of a drop ceiling, new flooring and
painting. It should be noted that the Developer was also seeking reimbursement for the
installation of drywall, but subsequently agreed to incur the cost as part of the construction
budget.
Pursuant to the terms of the Letter Agreement, the design, preparation of construction
documents and permitting costs are the obligation of the RDA, at a total cost of
$15,200.10. As such, the Administration recommends appropriating a total of $42,415.35
from available South Pointe Redevelopment Area Trust Funds, to reimburse the Developer
for costs related to the build-out of the library space.
JMG/CMC/KOB/rar
T:\AGENDA\2DD410CT13D4IREGULARICOURTS_ CMB.MEM.DOC
Enclosures: Modification of Letter Agreement dated March 25, 2003
Library space cost break-down
South Shore Library Cost Break-Down
Developer's Base Scope (per Letter Agreement, dated March 25,2003)
Fire Sprinkler
HVAC
Electrical & Lighting
Fire Security
Total Sase Scope:
Addt'l Scope
Total Developer's Costs:
Costs To RDA
Addt't Scope:
Painting
Ceiling
Flooring
Total Addt'l Scope:
Obligations:
Design Costs
Permit Costs
Total Cost to RDA:
TOTAL COSTS:
$ 5,943.00
$ 14,000.00
$ 30,500.00
$ 4,000.00
$ 54,443.00
$ 16,000.00
$ 70,443.00
$ 3,780.00
$ 10,500.00
$ 12,935.25
$ 27,215.25
$ 13,500.00
$ 1,700,10
$ 15,200.10
$ 42,415.35
$112,858.35
ALL SUPPORTING DOCUMENTS ARE INCLUDED WITH THE
REDEVELOPMENT AGENCY (RDA) ITEM