489-2004 RDA Reso
RESOLUTION NO. 489-2004
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY (RDA)
APPROVING AND AUTHORIZING THE EXECUTIVE
DIRECTOR 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/KJA 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
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 (f/k/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 exercised 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 f/k/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 offurnishings 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, HVAC 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 CHAIRMAN AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT AGENCY, FLORIDA, that the Chairman and
Members of the Miami Beach Redevelopment Agency hereby approve and authorize the
Executive Director 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 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,
ATT~d P ~
SECRETARY
APPROVED AS TO
FORM & LANGUAGE
"FOR EXECUTION
Date
l:\Agenda\2004\Oct13\Courts _ Reso.doc
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Miami Beach Redevelopment Agency
1700 Convention Center Drive, Miami Beach, FI. 33139
hUp:\\ci.miami.beach. fl. us
Miami Beach Redevelopment Agency
Facsimile (305) 673-7772
Telephone (305) 673-7193
October 5, 2004
Courts at South Beach Limited,
a Florida limited partnership
f/k/a Cobb Partners South Beach, Ltd.
20803 Biscayne Boulevard
Suite 200
Aventura, Florida 33180
Attn: Alan M. David
Re: Modification to 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/k/a Cobb Partners South Beach, Ltd., dated March 25, 2003
Dear Mr. David:
Pursuant to our discussion on September 23, 2004, this Letter Agreement shall serve to
modify and amend the understanding between the Miami Beach Redevelopment Agency
(RDA), the City of Miami Beach, and the Courts at South Beach Limited, a Florida limited
partnership f/k/a Cobb Partners South Beach, Ltd., (Developer), with respect to the closing
provisions/or Library Facility (the Facility) stipulated on Page 2, Paragraph 7 of the above-
referenced Letter Agreement, dated March 25, 2003.
It is hereby mutually agreed between the Parties that:
· The extension of time for closing of the transaction requested by the RDA is granted
so that the closing on the Facility shall occur no later than December 30, 2004,
instead of September 30, 2004.
· Developer has obtained a Certificate of Completion (CC) for the Facility, a copy of
which is attached hereto, for the completion of the retrofit, and vacated the Facility.
The City acknowledges and agrees that all obligations and requirements of Developer
for construction and retrofit of the Facility have been met by Developer. The items
required to obtain the final C.O. for the Facility are solely within the control of the City
and Miami-Dade Library System. Developer acknowledges and agrees it will apply for
the final C.O. upon written notice to make such application from the RDAlCity. In the
event the final C.O. is not obtained on or before December 30, 2004, for reasons
other than Developer's failure to apply for same, the closing shall nevertheless take
place as set forth herein, and the RDA shall hold Developer harmless from any
liability, cost or expense associated with obtaining the C.O. If, and to the extent any
additional construction and/or retrofit work is required to obtain the final C.O., the cost
of such work shall be bome exclusively by the City.
. Payment of the first installment, in the amount of $27,500, will be delayed until the
closing date (to occur on or before December 30, 2004), with each of the additional
nine installments of $27,500 to be paid on the anniversary date of the closing of the
transaction. Closing adjustments and prorations including, but not limited to, real
estate taxes and condominium assessments shall be made as of September 30,
2004. In addition to the first installment of the purchase price, the RDA shall also pay
in cash at closing the sum of $42,415.35, which sum represents the cost of its share
of the Facility improvements, as set forth in Exhibit 1.
Should you agree with the preceding terms and conditions of this Letter Agreement
Modification, please have a duly authorized representative of the Courts at South Beach
Limited, a Florida limited partnership f/k/a Cobb Partners South Beach, Ltd., acknowledge
and execute in the space provided below. A fully executed copy will be provided to the duly
authorized representative. All other terms and conditions of the Modification of Paragraph 4
of the Fourth Extension and Clarification Agreement, dated March 25, 2003, shall remain in
full force and effect.
ATTEST:
THE COURTS AT SOUTH BEACH
LIMITED f/k/a Cobb PartnersSouth Beach,
Ltd., a Florida limited partnership
By:
By: PACIFIC INTERNATIONAL SOUTH
BEACH, INC., a Florida
corporation, a General Partner
By:
ALAN DAVID, Vice President
STATE OF FLORIDA )
)SS
COUNTY OF MIAMI-DADE )
BEFORE ME, the undersigned authority duly authorized in the State and County aforesaid to take
acknowledgments, personally appeared ALAN DAVID, well known to me or who presented
identification in the form of , the Vice President of PACIFIC INTERNATIONAL
SOUTH BEACH, INC., a Florida corporation, a General Partner, and who took an oath, acknowledging
that he executed the above and foregoing document as his free act and deed, for an on behalf of said
corporation as its duly authorized representative, for the purposes set forth therein, and that the seal
affixed thereto is the true and correct seal of said Agency.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, in the State
and County aforesaid, on this _ day of , 2004.
Name
Notary Public, State of Florida at Large
By:
MIAMI BEACH REDEVELOPMENT
AGENCY
BY:
JORGE M. GONZALEZ
Executive Director
ATTEST:
STATE OF FLORIDA )
)SS
COUNTY OF MIAMI-DADE )
BEFORE ME, the undersigned authority duly authorized in the State and County aforesaid to take
acknowledgments, personally appeared JORGE M. GONZALEZ, well known to me or who presented
identification in the form of , the Executive Director of the Miami Beach
Redevelopment Agency, and who took an oath, acknowledging that he executed the above and
foregoing document as his free act and deed, for an on behalf of said Agency as its duly authorized
representative, for the purposes set forth therein, and that the seal affixed thereto is the true and correct
seal of said Agency.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, in the State
and County aforesaid, on this _ day of , 2004.
Name
Notary Public, State of Florida at Large
N:\$ALLlAnna\Soulh Pointe\CourtsOct0504Itr.CITY REV. doc
Miami Beach Redevelopment Agency
1700 Convention Center Drive, Miami Beach, FI. 33139
http:\lCi.miami-beach.fl.us
Miami Beach Redevelopment Agency
Telephone (305) 673-7193
Facsimile (305) ffT3-7772
March 25, 2003
Courts at South Beach Limited,
a Florida limited partnership
f/k/a Cobb Partners South Beach, Ltd.
20803 Biscayne Boulevard
Suite 200
Aventura, Florida 33180
Attn: Alan M. David
Re: Modification of Paragraph 4 of 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
f/k/a Cobb Partners South Beach, Ltd., dated July 26,2000
Dear Mr. David:
This Letter Agreement shall serve to modify and amend the understanding between the Miami
Beach Redevelopment Agency, the City of Miami Beach, and the Courts at South Beach Limited,
a Florida limited partnership f/k/a Cobb Partners South Beach, Ltd., with respect to Paragraph 4
of that certain document entitled Fourth Extension and Clarification Agreement, dated July 26,
2000, with respect to the Agency's right to exercise its option to purchase the Library facility, as
defined therein, and the parties' respective obligations thereto. The terms of this Letter
Agreement shall only serve to amend and supplement Paragraph 4 of the Fourth Extension but,
where in conflict therewith, the terms of this Letter Agreement shall prevail and govern the
understanding between the Parties with respect to the Agency's option to purchase the Library
Facility.
The Miami Beach Redevelopment Agency is exercising its option to purchase a 5,000 commercial
condominium space located at 131 Alton Road, (the "Facility") in accordance with Paragraph 4 of
that certain Fourth Extension and Clarification Agreement dated July 26, 2000 (the "Fourth
Extension"), by and among the Miami Beach Redevelopment Agency (the "RDA"), the City of
Miami Beach (the "City"), and the Courts at South Beach Limited, a Florida limited partnership
flk/a Cobb Partners South Beach, Ltd. (the "Developer"), as same is herein amended by the
Parties thereto.
The Fourth Extension allowed for the RDA to purchase the commercial condominium space and
contribute the space to the City of Miami Beach for use as a Library facility. The Parties also
acknowledged that the intent to so utilize this commercial space for a library may no longer be
feasible or desirable due to other library facilities that have been constructed in the general area
and the inability or unwillingness of Miami-Dade County to allow and/or support the maintenance
The Courts at South Beach Limited
March 25, 2003
Page 2
of another library at the subject location. However, the Parties also recognized that there may be
other public needs of the City that can be met through the acquisition of the Library space. As a
result, the Parties agreed that the RDA shall have the option to obtain ownership of what was
previously identified as the Library facility for any other public purpose, such as, but not limited to,
a pOlice sub-station or administrative fire or police office facilities, or such other public usage that
is mutually agreed to by the Parties.
On February 26, 2003, the RDA Board adopted Resolution No. 444-2002, which authorized the
acquisition of the space, provided that a pre-approved list of public uses be identified prior to the
acquisition, and that terms be identified for the event that your organization is not able to vacate
the space by September, 2004.
Therefore, a community meeting was held on March 13, 2003, during which the community
indicated a preference for the entire 5,000 sf space to be utilized as a library facility.
This Letter Agreement shall also confirm your meeting with members of my staff on March 17,
2003, during which the following list of pre-approved public uses were identified:
. Public purposes outlined in the Fourth Extension and Clarification Agreement dated July
26, 2000 between the City, the RDA, and the Courts at South Beach Limited, a Florida
limited partnership flk/a Cobb Partners South Beach, Ltd., such as a police sub-station or
administrative fire or police office facilities;
. Office space for cultural organizations and/or organizations which serve as arts
incubators;
. A library facility.
The Fourth Extension stipulates that once the option is exercised, the RDA shall pay $275,000 in
10 yearly installments starting with the first installment at the time of notice of exercise of the
option, and each additional installment of $27,500 is to be paid on the anniversary date of the
exercise of the option. However, the Developer has requested to be allowed to remain in the
facility which it is now using as a sales center and complete the build-out and close the
transaction by September 30, 2004. Therefore, as part of the City and the RDA's agreement to
allow the Developer the extended use of the facility, the first installment payment will be due on
the closing date, September 30,2004, with additional installments to be paid henceforth over the
next nine years.
Also, the Fourth Extension states that the designated space was offered to the RDA "as is" and
"where is". However, because the City will allow the Developer to continue using the space as its
sales center until September 2004, the Developer agreed to perform the retrofit/build-out of the
5,000 square foot space by September 30,2004, at its sole cost and expense as outlined below.
Therefore, the RDA's exercise of the option to purchase the facility is contingent upon the
aforementioned and the following understandings between the Parties:
. An extension of time for the closing of the transaction is granted so that the Closing may
be delayed until September 30, 2004, instead of within 180 days of March 31, 2003;
. Payment of the first installment in the amount of $27,500 is delayed until the closing date
on September 30,2004, with each additional nine installments of $27,500 to be paid on
the anniversary date of the exercise of the closing of the transaction;
Page 2 of 4
The Courts at South Beach Limited
March 25, 2003
Page 3
. The Developer may remain in the Library facility and continue its sales center use until
September 30, 2004, provided that the Developer performs the retrofit/build-out of the
5,000 square foot space, at its sole cost, pursuant to the attached permitted Lighting and
Electrical Drawing #LE2, dated November 11, 1994, as modified, and which will also
include three extra electrical drops, demolition of the demising wall, sprinklers, HVAC,
conduits with pull strings for computer and data lines;
. Developer will procure the design, preparation of construction documents, and/or
permitting fees and the City will pay the costs in connection therewith;
. If Developer's obligations have not been met by September 30, 2004, and the Developer
has not achieved final completion of the retrofit and/or vacated, then from October 1,
2004 until Developer achieves final completion of the retrofit and vacates the space, a
penalty in the amount of $7,000 per month (equivalent to approximately $17 per square
foot annually) will apply.
Should you agree with the preceding terms and conditions of this Letter Agreement Modification,
please have a duly authorized representative of the Courts at South Beach Limited, a Florida
limited partnership flk/a Cobb Partners South Beach, Ltd., acknowledge and execute in the space
provided below. A fully executed copy will be provided to the duly authorized representative. All
other terms and conditions of the Fourth Extension and Clarification Agreement, dated July 26,
2000, shall remain in full force and effect.
THE COURTS AT SOUTH BEACH
LIMITED f/k/a Cobb Partners South Beach,
Ltd., a Florida limited partnership
By:
By: PACIFIC INTERNATIONAL
SOUTH BEACH, INC., a Florida
. at Partner
ident
STATE OF FLORIDA )
)SS
COUNTY OF MIAMI-DADE)
BEFORE ME, the undersigned authority duly authorized in the state and County aforesaid to take
acknowledgments, personally appeared ALAN DAVID, well known to me or who presented identification in
the form of , the Vice President of PACIFIC INTERNATIONAL SOUTHBEACH, INC., a
Florida corporation, a General Partner, and who took an oath, acknowledging that he executed the above and
foregoing document as his free act and deed, for an on behalf of said corporation as its duly authorized
representative, for the purposes setforth therein, and thatthe seal affixed thereto is the true and correct seal
of said Agency. .
IN WITNESS WHEREOF, I have hereunto set my hand and
County aforesaid, on thili:&. day of ~421d_, 2003.
ry Pu Ilc, ~t Large
NaiIllIr NIle - Stale of AaIIda
_0,.......... __ Jun 21, ZlIM
Q"".,lIwfo,l t CC91284f
Page 3 of4
The Courts at South Beach Limited
March 25, 2003
Page 4
ATTEST:
MIAMI BEACH REDEVELOPMENT AGENCY
By: ~lJ" ?rJA . 7 ')
BY'~ ~~
. JO M. G ZA
Executive Director
STATE OF FLORIDA )
)SS
COUNTY OF MIAMI-DADE)
BEFORE ME, the undersigned authority duly authorized In the State and County aforesaid to take
acknowledgments, personally appeared JORGE M. GONZALEZ, well known to me or who presented
identification In the form of ~ ,I.. , the Executive Director of the Miami Beach Redevelopment
Agency, and who took an oath, acknowledging that he executed the above and foregoing document as his
free act and deed, for an on behalf of said Agency as its duly authorized representative, for the purposes set
forth therein, and that the seal affixed thereto is the true and correct seal of said Agency.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, in the State and
County aforesaid, on this ~ day of J....lAi2l:::H ,2003.
~c~
Name A. C. 0
Notary Public, State of Florida at Large
#~ USA C. DIXON
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RESOLUTION NO. 2004-25544
A RESOLUTION OF THE MAYOR AND MEMBERS OF THE
CITY COMMISSION ADOPTING THE RECOMMENDATION
OF THE CITY MANAGER AND AUTHORIZING THE
ADMINISTRATION TO COMMIT THE 5,000 SQUARE FOOT
SPACE WITHIN "THE COURTS" PROJECT (F/KlA THE
COBB PROJECT) LOCATED AT 131 ALTON ROAD, MIAMI
BEACH, FLORIDA, FOR USE AS A LIBRARY.
WHEREAS, Miami Beach Redevelopment Agency Resolution No. 444-2003,
passed and adopted on February 26,2003, authorized the Executive Director to exercise
the RDA'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; and
WHEREAS, the existing South Shore Library Branch, located at 225 Washington
Avenue. is intended to be relocated to the Facility at 131 Alton Road; and
WHEREAS, the developer of The Courts project (Developer) is currently utilizing the
Facility as its sales center, while it is preparing to commence the retrofrtlbuild-out of the
Facility, which is to be completed by September 2004; and
WHEREAS, the Developer is seeking direction as to the final space configuration of
the Facility, and concurrently, the Miami-Dade Public Library System has requested the
City's commitment for an allocation of the entire Facility as a Library so that proper
budgeting for the necessary books, materials, and computers may be secured; and
WHEREAS, during the February 26, 2003 Commission meeting, there was
discussion conceming the possibility of utilizing the Facility as a Library, and for any other
public purpose which would be mutually agreed to between the City/RDA and Developer;
and
WHEREAS, during the February 26, 2003 City Commission meeting, the
Administration stated it would be prepared to make a recommendation as the April 2004
date approaches and when the retrofit of the space needs to begin; and
WHEREAS, on March 13, 2003, a community meeting was held, during which the
members of the public present indicated a preference for the entire Facility to be utilized as
a Library; and
WHEREAS, on March 25, 2003. a Letter Agreement Modification to 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 f/kJa Cobb Partners South Beach, Ltd. (Developer), dated July
26, 2000, was executed, which identified the following as "other public uses as permitted
and as mutually agreed to by the parties":
. Public purposes outlined in previous agreements such as a police sub-station or
administrative fire or police office facilities;
. Office space for cultural organizations and/or organizations which serve as arts
incubators;
. A library facility; and
WHERAS, while the City Commission has requested the Administration to consider
additional public purpose uses for the Facility, the Administration believes it is not in the
City's best interest to retrofit the Facility for more than one use or for shared uses, for the
following reasons:
. Members of the community have expressed they prefer the Facility be purchased
for the exclusive use of relocating and expanding the South Shore Library Branch.
They do not support the sharing of the Facility between the Library System and
other public purposes;
. The Miami-Dade County Library System has prepared a schematic plan for the
library relocation and expansion utilizing the Facility which envisions more space
for a computer facility, an expanded book collection, and a children's area for
story-reading programs; .
. The Facility is currently built for a single user with one set of restrooms and only
minimal means of egress. Therefore, the permitting requirements of retrofitting the
Facility to allow for a second occupant may result in additional restroom
requirements and a requirement for an additional means of ingress and egress,
which will substantially affect the retrofit cost and timeframe for construction.
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 adopt the recommendation of the City Manager and hereby authorize
the Administration to commit the 5,000 square foot space within "The Courts" project
(F/K1A The Cobb Project), located at 131 Alton Road, Miami Beach, Florida, for use as a
Library.
PASSED and ADOPTED this 14th d Y
ATTEST:
~' Y..~
~ CITY CLERK
" T:\AGENDA\2004\Apr1404\RegularlCourlsReso.doc
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
'J~qJ
CITY OF MIAMI BEACH
MIAMI BEACH REDEVELOPMENT AGENCY 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 libra 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 (f/k1a 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 "Agreement") 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 3A
DATE /0-/3 -or
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.d.miamibeachfl.gov
To:
From:
Subject:
MIAMI BEACH REDEVELOPMENT AGENCY MEMORANDUM
Chairman and Members of the Board of the
Miami Beach Redevelopment Agency
Jorge M. Gonzalez ~ ~
Executive Director fJ ,,- 0
A RESOLUTION F THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY 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/KfA 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
. 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.
October 13, 2004
Redevelopment Agency Memorandum
Library at The Courts - Modification to Letter Agreement dated March 25, 2003
Page 2 of 3
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
memorandum. While the retrofiUbuild-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, HV AC 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
October 13, 2004
Redevelopment Agency Memorandum
Library at The Courts - Modification to Letter Agreement dated March 25, 2003
Page 3 of 3
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:\AGENDAI2004\OCT1304\RDA\COURTS.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'! 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