Attachment #1
site:
Proposal:
Development:
Management:
Financing:
Retail:
Parking
Spaces:
I/ttCiehl)l~n't ,# ..1.
CITY OF MIAMI BEACH
The Ballet Valet Parking Company, Ltd.
Letter of Intent
42,000 square feet at the southeast corner of 7th Street
and Collins
550 space parking garage
Project to be designed and built as a turn key parking
project by the Ballet Valet Parking Company, Ltd. ("BV")
and its professional team with City of Miami Beach
("City") to have safeguards reqarding budget and quality
control. Concurrently with the aforementioned budget
and quality control approvals, City shall have the right
',to prior approval of the schematic design plans, design
development plans and construction plans for the
project. City's approval shall not be unreasonably
withheld or delayed. Failure of city to respond within
15 working days from receipt of written notice and plans
by BV shall be deemed approval. Notwithstanding the
above, BV shall be required to submit all plans for the
normal course of approvals through the City's planning,
design, zoning and other processes.
The parking portion of the project to be managed by the
City Parking Department with BV to have safeguards
regarding revenues and quality control. The parties
shall execute a Management Agreement further detailing
the respective responsibilities.
City to finance the parking component of the project
with tax exempt bonds; specifically BV requests that the
City finance the project with Gulf Breeze Tax Exempt
bonds, if available.
BV to be solely responsible for retail, which shall not
be a portion of the project, as required by City's Bond
Counsel.
BV to have access to up to 40\ of the parking spaces, to
be available to BV at certain times based upon the fair
market value of space rentals discounted from the
monthly rate with the discount to be based upon the
quantity of spaces rented and the long term nature of
the lease. In no event shall the rate paid by BV exceed
the lowest rate of any parking space tenant. On June 1
of each year, the City shall notify BV of the proposed
rates for bulk parking for next year. Fifteen working .
5
Land:
Land Lease:
Right to
Acquire:
Term:
(letter'7/8/93)
days after said notice, BV shall notify the City as to
the number of spaces BV will require for the year. The
City shall have the right to market the balance of
spaces during that given year. BV will rent spaces for
an initial 30 year term; City shall grant two (2) thirty
(30) year renewals at option of BV; said option terms'
shall be based upon fair market value of space rental at
that time.
BV shall sell City the non retail pQrtion of the land
(approximately 30' of the total site) to be used solely
for the parking garage. The price shall be based upon
the percentage of land the City acquires times the
appraised value of the entire 42,000 square foot site.
City shall lease from BV the air rights over the balance
of the land. The lease rate for the air rights shall be
an annual payment of 9' of the initial appraised value
. of said air rights, with an annual CPI escalator, not to
'. exceed 5' annually.
No sooner than thirty years after issuance of ~
certificate of occupancy for the parking garage, BV
shall have the right to acquire the parking garage.
BV's purchase price shall be equal to the fair market
value of the project at the time of the acquisition, as
determined by appraisal, plus any accumulated deficit
incurred by the City over the life of the operation of
the parking garage.
No sooner than thirty years after issuance of a
certificate of occupancy for the parking garage, the
City shall have the right to acquire the air rights
subject to the lease between BV and the City as
described above. The City'S purchase price shall be
equal to the fair market value of the air rights at the
time of the acquisition, as determined by appraisal.
The parties agree to use their best efforts to negotiate
a definitive agreement within 90 days after acceptance
by the Miami Beach City commission of this letter of
intent. In the event no agreement is reached, the
parties shall conclude all negotiations without
liability to the other, and each party shall be
responsible for its own costs. The initial 90 day
negotiating period shall be subject to extension upon
mutual agreement of the parties.
6