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131-93 RDA RESOLUTION NO. 131-93 A RESOLUTION OF THE MIAMI BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE AN AGREEMENT WITH SUN , FUN, INC. TO PERMIT A RESIDENTIAL APARTMENT BUILDING TO BE REHABILITATED AT 211 COLLINS AVENUE, MIAMI BEACH, FLORIDA, AND ESTABLISHING A BASE PURCHASE PRICE FOR SAID PROPERTY SHOULD THE REDEVELOPMENT AGENCY EXERCISE ITS POWER OF EMINENT DOMAIN. WHEREAS, Sun , Fun, Inc. has purchased property described as Lot 10, Block 3, OCEAN BEACH FLORIDA, according to the plat thereof as recorded in Plat Book 2 at Page 38 of the Public Records of Dade County, Florida, commonly known as 211 Collins Avenue, Miami Beach, for the purposes of rehabilitating a residential apartment building; and WHEREAS, there is a need to encourage development of properties in the Redevelopment Area; and WHEREAS, the Board of Adjustment of the city of Miami Beach has approved Sun & Fun's variance requests becoming effective upon this agreement being entered into. NOW, THEREFORE, BE IT RESOLVED BY THE MIAMI BEACH REDEVELOPMENT AGENCY that the Chairman is authorized to execute an agreement with Sun & Fun, Inc. permitting a residential use to be rehabilitated at 211 Collins Avenue, Miami Beach, Florida and establishing terms for the acquisition of said property should the Redevelopment Agency exercise its power of eminent domain, a copy of said Agreement attached and incorporated hereto as Exhibit "A". PASSED and ADOPTED this 2nd day of 1993. Attest: (~/~~ 2_(~~ Secretary Approved as to form: By APPROVED ELOPMENT AGENCY NERAL COUNSEL JeS> s- 11-~3 Date JCD/jm a: jcd\Sun&fun. res AGREEMENT THIS AGREEMENT is made and entered into as of the CN-fl day of -.:JLIf\ e. -Hay-, 1993, by and between SUN & FUN, INC. ("SUN & FUN, INC.") a Florida corporation and the MIAMI BEACH REDEVELOPMENT AGENCY ("MBRA"), a public agency organized and existing pursuant to the Community Redevelopment Act of 1969, found in Chapter 163, Florida statutes, as amended. !! H ~ B ~ A ~: A. SUN AND FUN, INC. is the fee simple title owner of that certain parcel of real property legally described as Lot 10, Block 3, OCEAN BEACH FLORIDA, according to the Plat thereof, recorded in Plat Book 2, Page 38, of the Public Records of Dade County, Florida, and more commonly referred to by the street address of 211 Collins Avenue, Miami Beach, Florida (the "Property"). B. SUN AND FUN, INC. currently intends to rehabilitate a residential apartment building on the Property ("Apartment Building"). C. The Board of Adjustment of the city of Miami Beach ("Board of Adjustment") has, on December 4, 1992, approved SUN & FUN, INC.'s request for certain variances (the "Variances"), under File No. 2276, with the understanding and upon the condition that this Agreement be entered into. This instrument prepared by: Lucia A. Dougherty, Esq. Greenberg, Traurig, Hoffman, Lipoff, Rosen , Quentel, P.A. 1221 Brickell Avenue, Miami, Florida 33131 D. SUN & FUN, INC. has voluntarily agreed to enter into this Agreement as a condition to its request for the Variances before the Board of Adjustment. NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed by and between SUN & FUN, INC. and MBRA that: 1. In the event the MBRA commences any condemnation action (or other proceeding in the nature of condemnation) with respect to the Property from the date of this Agreement through and until three (3) years from this date, then, and in such event, the parties agree that the condemnation award (payment) for such taking shall not exceed the lesser of fair market value or an amount equal to the aggregate total of a, b, and c as follows: (a) the original purchase price paid by SUN & FUN, INC. for the Property, which is $195,000; plus (b) all out-of-pocket costs and expenses of reno- vating the Property including, without limita- tion, both (i) the hard costs of construction of improvements on the Property as well as (ii) soft costs of design, architecture and engineering for such improvements provided however, that the amounts of (i) and (ii) shall not exceed $930,000; less however, (c) the amount of any actual federal tax savings to Fun & Sun, Inc. resulting from depreciation to the extent the same was actually realized by SUN & FUN, INC. and is not recaptured as a result of the condemnation. Provided, however, anything to the contrary notwithstanding, that to the extent the acquisition and/or construction of the Property and improvements is financed by an institutional loan from a third party lender, then the amount to be paid pursuant to the foregoing, 2 shall in any event, be not less than the amount necessary to fully payoff and satisfy the loan, unless the fair market value of the property is less than the amount of said loan, in which event the amount paid for the property shall not exceed the lesser of fair market value or the total of a, b, and c above. 2. The amount shall be subject to final audit by the MBRA. SUN & FUN, INC. agrees to provide any and all documentation reasonably required by the MBRA in the determination of the costs addressed above, which shall include, but not be limited to, paid invoices. 3. SUN & FUN, INC. agrees that, except as is set forth above, it hereby waives and releases any other right to remuneration in any condemnation proceeding brought by the MBRA during the three (3) years, above described, including but not limited to any right to receive the then fair market value for the subject Property. 4. This Agreement shall be a covenant running with the Property and shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and assigns, and all parties claiming by, through or under them. 5. Should there be litigation to enforce or interpret this Agreement, the prevailing party shall have the right to reasonable attorney fees court costs at trial and all appellate levels. 6. This Agreement shall be recorded in the public records of Dade County, Florida, at the expense of SUN & FUN, INC. 7. In the event SUN & FUN, INC., its successors and assigns, and/or any parties claiming by, through or under them, initiates 3 any legal action to rescind the terms of this Agreement, then the variances shall automatically become void and of no further force or effect. 8. Anything to the contrary notwithstanding, this Agreement shall automatically terminate, be null and void and be of no fur- ther force or effect upon the earliest to occur of the following: i) the third anniversary of the date hereof; ii) any modification or other change in ordinance or law enacted by the City of Miami Beach which would make the Variances unnecessary; and/ or iii) any change in policy evidenced by formal resolution by the Redevelopment Agency or the City of Miami Beach not to require agreements of this nature in similar circumstances. IN WITNESS WHEREOF, we have hereunto set our hands and seals as of the ~ day of ~, 1993 at Miami Beach, Dade County, State of Florida. cf SUN & FUN, INC., a Flor'da corporation By: r t .At:l~ Secre y MIAMI BEACH REDEVELOPMENT AGENCY, an agency organized and existing pursuan to the Redeve ment Act of 1969, s found in Ch pter 63, Flori Statutes as a ed. Chairman Attest: ~Afta,uL 8. --:p)cu;y ly It.(,~tkiL Secretary :lll)r1fy 4 FORM APPROVED REDEVELOPMENT AGENCY GENERAL COUNSEL ~ By J (~ ~- 2- Cf~ Date APPROVED AS TO FORM: General Counsel STATE OF FLORIDA SS: COUNTY OF DADE The foregoing instrument was acknowledged before me this 1:3 day of ~~ ' 1993 by Thomas Kramer as President of SUN & FUN, I.NC.....r-a...:: lor1da corporat1on, on behalf of the corporat1on. He ~all y appeared before =Jfte;-ls PQnlnn;:t lly know~ me or produced as identification, and [did] [did not] take an oath. [NOTARIAL SEAL] Notary: ~7 ~A__"'~,.r- Print Na~~~Em~~P;---W A ~ ~ Notary Public, State of My commission ex~~es: I.~ ~~.... OFFICIAL SEAL ~ .~, BETTY ROFFWARG ) \ ,:" ~ 'MY Commission Expires ) SS: 'to. ",/ April 15. 1997 ~OFf~C:'" Comm. No. CC 276973 ) ......." STATE OF FLORIDA COUNTY OF DADE T foregoing instrument was 9Ck~pwle~ged before me this 1~~ day of , 1993 by ~~ G>-e Jbe r as Chairman of Mia . Beach Redevelopm t Agency, an agency organ1zed and existing pursuant to the Community Redevelopment Act of 1969, found in Chapter 163, Florida Statutes as e they personally appeared before me, is/are ersonally known to m~_ ~uced as iden ca 1on, an [1d] ~ ~ take an oath. [NOTARIAL SEAL] ~~i~~~a e IhMIex ~ ~ Notary pu lic, state of n~1!.1 DFr My commission expires: ~v PIJ OffICIAL NOTARY SEAL tS~ 8(.-! Y A..ILEX MORALES ~ ~"\'A 1 "CO....ISSION NUMBER if I ~ CC203935 \ ~ MY COMMISSION EXPo "'OFf\.O JUNE 21996 GTH\DOUGHERTYL\108016.1\OS/12/93 5 :\.tia.'""'"'! C2aL'"' :-'auevelopment :"'gency , 700 Convention Center Drive Miami Beach, Florida 33139 REDEVELOPMENT AGENCY MEMORANDUM NO. 93-16 June 2, 1993 To: Chairman and Members of the Board of the Redevelopment Agency From: Roger M. Carlton Executive Direc subject: RBSOLUTION AND AGREEMENT WITH SUN , FUN, INC. IN THE EVENT THB MIAMI BEACH REDEVELOPMENT AGENCY EXERCISES ITS POWER OF EMINENT DOMAIN. ADMINISTRATION RECOMMENDATION: The Administration recommends that the Miami Beach Redevelopment Agency (Agency) Board adopt the attached Resolution and authorize the Chairman to execute the attached Agreement with Sun & Fun, Inc. BACKGROUND: Sun & Fun, Inc. (Sun & Fun) is the fee simple title owner of the property described as Lot 10 of Block 3, Ocean Beach Florida, commonly known as 211 Collins Avenue. Sun & Fun intends to substantially rehabilitate the existing sixteen (16) unit residential apartment building. On December 4, 1992 the Board of Adjustment of the City of Miami Beach approved Sun & Fun's request for various variances under file No. 2276 with the understanding and conditioned upon the above referenced Agreement being entered into with the Agency. ANALYSIS: The above mentioned Agreement specifies that in the event the Agency commences any condemnation action with respect to the subject property within the next three (3) years, the Agency shall pay an amount equal to the lesser of; [1] the purchase price of $ 195,000, plus all out-of-pocket costs and expenses of renovating the property (hard costs & soft costs) not to exceed $ 930,000 less the amount of any federal tax savings to Sun & Fun resulting from depreciation from this date to the date of the taking; [2] if the acquisition and/or construction of the property and improvements is financed by an institutional loan from a third party lender the amount to satisfy the loan, [3] the fair market value. In turn, Sun & Fun agrees to waive and release any other right to remuneration, including but not limited to any right to receive the then fair market value for the property, if the Agency brings forth any condemnation action within the next three (3) years. continued... au . 17 ...- ...- Sun & Fun has voluntarily agreed to enter into this agreement as a condition related to its request for the Variances. CONCLUSION: The execution of this agreement will allow Sun & Fun the opportunity to rehabilitate their building, thereby aiding in the revitalization of the area, without causing an undue hardship on the Agency in the event the property has to be acquired through Eminent Domain. RMC:JD:rd Attachments 18 - -