2000-23869 RESO
RESOLUTION NO. 2000-23869
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON FIRST
READING/PUBLIC HEARING, THE DEVELOPMENT
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, THE
MIAMI BEACH REDEVELOPMENT AGENCY, AND AMERICAN
RIVIERA REALTY COMPANY, IN ACCORDANCE WITH THE
REQUIREMENTS OF THE FLORIDA LOCAL GOVERNMENT
DEVELOPMENT AGREEMENT ACT, FOR DEVELOPMENT OF AN
OFFICE BUILDING AND RETAIL SPACE AT THE SITE LOCATED
AT 224 23RD STREET (THE "KING PARCEL"), AND SETTING THE
SECOND READING/PUBLIC HEARING FOR CONSIDERATION OF
THE DEVELOPMENT AGREEMENT ON MAY 10, 2000, AND
FURTHER SETTING A PUBLIC HEARING REQUIRED PURSUANT
TO SECTION 82-36 THROUGH 82-40 OF THE CODE OF THE CITY
OF MIAMI BEACH, ON MAY 10,2000, FOR APPROVAL OF THE
LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH,
THE MIAMI BEACH REDEVELOPMENT AGENCY, AND
AMERICAN RIVIERA REALTY COMPANY FOR THE SITE
LOCATED AT 224 23RD STREET (THE "KING PARCEL").
WHEREAS, on February 23, 2000, the City Commission directed the City Manager and the
City Attorney to prepare the legal documentation to effectuate the terms of the revised settlement
agreement between the City of Miami Beach ("CMB") and American Riviera Real Estate Company
("AR"); and
WHEREAS, to facilitate the negotiations, the City Attorney engaged the firm of Roll nick
and Linden, P.A. to assist and draft the attached Development Agreement for the Cultural Campus
Office Building and the additional documents listed below to effectuate the terms of the settlement
agreement, including:
1. Agreement of Purchase and Sale (Ablon Parcel)
2. Option Agreement (Fruitstand Parcel)
3. Agreement of Sale and Purchase (Fruitstand Parcel)
4. Option Agreement (Chevron Parcel)
5. Agreement of Purchase and Sale (Chevron Parcel)
6. Agreement of Settlement
7. Option Agreement (King Parcel)
8. Development Agreement Cultural Campus (Parking Garage)
9. Agreement of Lease (Cultural Campus Office Building)
10. Unity of Title Agreement/Dec1aration of Restrictive Covenants in Lieu of Unity of
Title Agreements
11. Parking Garage Easement Agreement; and
Ie \AGENDA 12000\APR 1200IREGULAR\AMERl224. RES
April 12, 2000
American Riviera - 224 23rd Street
Resolution
Page 2
WHEREAS, in accordance with the Florida Local Government Development Agreement
Act, the City of Miami Beach and American Riviera Realty Company are entering into a
Development Agreement to address the proposed development at the site; the development
regulations applicable to the site; improvements to be constructed by the developer; the timeframe
by which the developer shall obtain all building permits and complete construction, subject to
unavoidable delays; and
WHEREAS, the City Commission must hold two public hearings to enter into a
Development Agreement and this resolution will approve the Development Agreement on first
reading/public hearing and will set the second reading/public hearing on May 10, 2000; and
WHEREAS, the final Settlement Agreement enables the City to purchase the Ablon parcel
and proceed with the construction of the Library, and it enables the development of a garage if AR
exercises its option on the Fruitstand parcel; and
WHEREAS, if AR does not purchase the Fruitstand parcel, the City has the right to purchase
the Chevron leasehold or fee simple interest at a stated price, therefore gaining site control and
securing the potential development of a garage; and
WHEREAS, it has been determined that the development proposal presented herein requires
Planning Board review prior to final City Commission approval; and
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 of the City of Miami Beach hereby approve the Development Agreement on first
reading/public hearing and set a second reading/public hearing on May 10, 2000, at which time the
City Commission will also consider approval ofthe Lease Agreement pursuant to the requirements
of Section 82-36 through 82-40 of the Code of the City of Miami Beach.
PASSED and ADOPTED this 12th day of April, 2000.
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ATTEST:
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CITY CLERK
MAYOR
LAL/CMC/rar
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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T \AGENDA 12000\APR 1200lREGULARIA MER/224. RES
PROPOSED/REVISED SETTLEMENT AGREEMENT BETWEEN
AMERICAN RIVIERA REAL ESTATE COMPANY AND
THE CITY OF MIAMI BEACH AND
THE MIAMI BEACH REDEVELOPMENT AGENCY
February 18, 2000
. The City of Miami Beach ("City" or "CMB") will pay $1.5 million, inclusive of all
attorney's fees and expert costs, to American Riviera (liAR"), subject to requisite releases
from Judah Burstyn and Palm Court, conditioned upon final approval by the City
Commission. The purchase price of $1.5 million represents $1,150,000 (12,500 sf @
$92/st) for the Ablon parcel and an additional $350,000 for legal fees or expenses and
CMB will not be responsible to AR, Judah Burstyn, Palm Court or any other person or
party for any other legal fees or expenses. AR will sell and convey the Ablon parcel to
the City, on or before May 1, 2000.
· AR is given a 2 year option to purchase the Fruitstand at $1,380,000 (15,000 sf@ $92/st).
The Fruitstand acquisition price is $1,380,000 based upon $92/sf for 15,000 sf. To the
extent the lot is less/greater than 15,000 sf, the price will be adjusted accordingly. The
purchase price will be paid 50 % upon execution and closing of the option; the remainder
of the purchase price will be evidenced by a promissory note bearing interest at Wall
Street Journal prime rate, payable monthly, until issuance of TCO, at which time the
principal and any accrued and unpaid interest balloon. (An outside date for construction
completion will be negotiated in the Development Agreement.) The note will be secured
by a purchase money mortgage.
If AR exercises option on Fruitstand, parcel can only be used to build THE GREATER
OF a minimum 300 space garage OR, if CMB implements Stern Plan, the number of
spaces dictated by a demand study considering the number of spaces to be removed from
Collins and 21 st Street and based upon a three (3) year projection for demand from the
construction completion date of the garage.
· CMB will offer AR the option to lease the King parcel during the same two (2) year period
only if AR exercises the option and purchases the Fruitstand parcel. The base rental rate
is based upon the size of the lot area leased at $92/sf @ a 10 % return to the City, subject
to escalations. The lease rental rate will be tied to the leasing as follows:
Year 1 - $0 - during construction
Year 2 - $0 - during construction
Year 3 - $ rent % of leased up space x $92,000
Year 4 - $ rent % of leased up space x $92,000
Year 5 - $ rent % of leased up space x $92,000
Year 6 - $92,000 stabilized base rent
F: ICMGRI$ALLICHRISTINIBLOOMBG2. DOC
American Riviera/CMB/RDA
February 18, 2000
Page 2
.
AR agrees, that if AR does not exercise its option on the Fruitstand parcel, then the CMB
has an option to acquire AR's leasehold interest in the Chevron parcel at $1,450,000, but
only in the event the City acquires the fee, or at $1,750,000 if the leasehold together with
the fee is delivered. AR and its counsel also agree not to contest any condemnation
proceedings by the City and its counsel agrees not to represent any of the Chevron parcel
fee owners. The CMB will have six (6) months to exercise the option and to initiate
eminent domain proceedings, on a Quick Take basis at the City's option, with diligence,
if AR does not deliver the fee interest in the property, and the closing of the City's option
is contingent upon acquiring the fee interest in the property. CMB agrees to allow Palm
Court the right to lease no less than 30 parking spaces at prevailing market rates for City
owned parking within the area, including the on-street bagged metered spaces.
.
CMB will develop finished permanent surface parking on Fruitstand during interim period
at the sole discretion of the City taking staging of other construction into consideration.
.
CMB will not guarantee the closure of the 21 st and Collins surface parking lot when garage
opens subject to the Stern master plan which includes on street parking and some off street
ROS parking. CMB will agree not to enter into any new private use agreements at the
Collins and 21st Street lot, exclusive of the MCB, Bass, Library to meet parking
requirements.
.
CMB will allow AR to file application with DRB prior to possession of the Fruitstand and
King parcels.
.
To the extent legally permissible, CMB agrees to enter into a Development Agreement
with AR to protect the DRB approval granted on the Chevron pending either parties
exercise of their respective option.
.
AR will be entitled to receive reimbursement of impact fees for the Palm Court to the
extent permitted by the City Code, in effect on the date such payment was made.
.
City agrees to lease to AR the metered spaces on Liberty Avenue north of 23rd Street for
as long as possible, but no longer than the date for which the TCO for the Garage is
issued, at the daily bagged meter rate. AR agrees to maintain Liberty Avenue north of
23rd Street in a clean.
.
Parties agree to jointly dismiss any pending/proposed legal proceedings/litigation or any
other dispute between the parties, with respect to the subject sites.
F: ICMGRI$ALL\CHRISTlNIBLOOMBG2. DOC
American Riviera/CMB/RDA
February 18, 2000
Page 3
FRUITSTAND PURCHASE OPTION TERMS:
TERMS:
Owner: City of Miami Beach
Optionee: American Riviera Real Estate Co. and/or assigns
Project Description: Minimum 300 space garage and approx. 25,000 gross sf retail (16,000 net useable sf)
Option Period: 2 Years from Execution
Option Price: $1,380,000 or $92/sfx lot sf.
Parking: . Cultural Campus users will have the parking rights for spaces in the garage at
comparable City parking rates.
. MCB/Library parking requirements to be met in the garage.
. ROS Replacement parking to be provided in the garage, if necessary.
. Parking easement agreement with City for King parcel office building.
Garage Parking All charges for parking in the Garage for Cultural Campus users, including, but not limited
Rates: to, the hourly, daily, weekly, monthly, evening flat rates and special event flat rates, shall
not be greater than the parking facility rate being charged by the City or the Miami Beach
Redevelopment Agency and shall be comparable with parking facility rates being charged
within the City. Parking rates shall not be increased for special events such as Art Deco
Weekend, boat shows or any similar events or activities that create high demand for parking
spaces.
F: ICMGRI$ALLICHRISTlNIBLOOMBG2. DOC
American Riviera/CMB/RDA
February 18, 2000
Page 4
KING-OFFICE BUILDING LEASE TERlVlS:
TERlVlS:
Owner: City of Miami Beach
Developer: American Riviera Real Estate Co. and/or its assigns
Project Description: Approx. 48,000 sf office/retail, subject to City zoning laws.
*subject to City/Stem review
Lease Term: 50 years, with 2, 20-year extension options, subject to re-appraisals
Possession Date: To be determined in the context of construction staging.
Base Rent: Year 1 - $0 - during construction
Year 2 - $0 - during construction
Year 3 - $ rent % of leased up space x $92,000
Year 4 - $ rent % of leased up space x $92,000
Year 5 - $ rent % of leased up space x $92,000
Year 6 - $92,000 stabilized base rent
Base Rent Base rent will be adjusted at the end of the 7th lease year and every 5th lease year
Adjustments: thereafter, based upon the lesser of 12% or the cumulative CPI over the previous 5 year
period.
Percentage Rent: Lessee shall pay percentage rent equal to 2.5% of gross revenue annually, commencing
(as a percentage of in year 6.
gross revenues):
Right of First City /Developer have right of first refusal to purchase each other's interest in the Project.
Refusal:
Environmental Property is leased "as is" and developer is responsible for remediation. City has
Matters: conducted preliminary environmental studies evidencing no contamination.
Real Estate Taxes: Lessee shall be responsible for all real estate taxes associated with the property
improvements and underlying land.
Real Estate Taxes will be included and defined as Additional Base Rent in the event
taxes are abated, waived or exempted. If taxes are reduced as a result of decline in
property values in the area, this provision will not apply.
Parking: AR's required parking needs will be provided at the garage to be built on the Fruitstand
parcel.
Easement Upon termination of the lease, the City will retain parking easement rights to assure
Agreement: parking requirement compliance.
Re-appraisals: If developer exercises extension options, the land will be re-appraised, based upon the
terms set forth in the Lease Agreement, to determine the new base rent based upon the
value in use in the 49th year and 69th year. The Base Rent will never be less than the
prior year's base rent.
Sale: Sale of the project will be subject to City consent.
Sub-Leases: Subject to City's consent.
F:ICMGRI$ALLICHRISTINIBLOOMBG2.DOC
American Riviera/CMB/RDA
February 18, 2000
Page 5
CHEVRON PURCHASE OPTION TERMS:
TERMS:
Owner: American Riviera Real Estate Co. and Fee owners
Optionee: City of Miami Beach.
Project Description: N/A
Option Period: 6 months after the expiration of AR's option on the Fruitstand parcel.
Option Price: $1,450,000 for leasehold interest OR $1,750,000 for fee simple interest
Environmental: AR agrees to assign the Environmental Indemnification provided by Chevron regarding
the Chevron site. If environmental remediation is required, the City will recover any
costs incurred in connection therewith from the Indemnification Agreement or State
EDI laws. To the extent the Indemnification Agreement or the State ED! fund, in
which said site participates, does not provide reimbursement for such costs, the parties
agree to share any costs borne equally.
Parking: Palm Court will have the parking right to use not less than 13 spaces on the Chevron
parcel.
F:ICMGR\$ALLICHRISTINIBLOOMBG2. DOC
CITY OF MIAMI BEACH
NOTICE OF INTENT TO CONSIDER
DEVELOPMENT AGREEMENT
AT A PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the first of two public hearings will be held by the City
Commission and the Redevelopment Agency of the City of Miami Beach, Florida, on Wednesday,
April 12, 2000 at 10:31 a.m., or as soon thereafter as possible, in the City Commission Chambers,
Third Floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, to consider and enter
into a proposed development agreement (the "Development Agreement") between American Riviera
Real Estate Company, the City of Miami Beach, and the Miami Beach Redevelopment Agency in
accordance with the requirements of the Florida Local Government Development Agreement Act
for property located at 224 23rd Street and comprised of approximately 10,000 square feet located
at the southeast comer of Liberty Avenue and 23rd Street, Miami Beach, Florida. The Project shall
consist of 48,000 square feet of office and retail space. The Project shall not exceed 50 feet in
height.
The foregoing information is provided pursuant to the requirements of Section 163.3225, Fla. Stat.
Inquiries concerning the proposed Development Agreement should be directed to the Office of the
City Clerk, (305) 673-7411. Copies of the proposed Development Agreement are available for
inspection, and may be obtained pursuant to S 119.07, Fla. Stat., during normal business hours in the
Office of the City Clerk, City Hall, First Floor, 1700 Convention Center Drive, Miami Beach,
Florida.
All persons are invited to appear at this meeting or be represented by an agent, or to express their
views in writing addressed to the City of Miami Beach City Commission c/o the City Clerk, 1700
Convention Center Drive, First Floor, Miami Beach, Florida 33139.
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: If a person decides
to appeal any decision made by the City Commission or the Redevelopment Agency with respect to
any matter considered at this meeting or hearing, such person must insure that a verbatim record of
the proceedings is made, which record includes the testimony and evidence upon which the appeal
is to be based. This notice does not constitute consent by the City or the Agency for the introduction
or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or
appeals not otherwise allowed by law.
In accordance with the Americans with Disabilities Act of 1990, all persons needing special
accommodation to participate in this proceeding should contact the City Clerk's Office no later than
four days prior to the proceeding, telephone (305) 673-7411 for assistance; if hearing impaired,
telephone Florida Relay Service numbers (800) 955-8771 (TDD) or (800) 955-8770 (VOICE), for
assistance.
F' A Trfl\T1 'RN\:-;( )TlCf~'i\"'IN(iM,\ILAMD
THE FOLLOWING DOCUMENTS ARE DISTRIBUTED
UNDER SEPARATE COVER
1. Agreement of Purchase and Sale (Ablon Parcel)
2. Option Agreement (Fruitstand Parcel)
3. Agreement of Sale and Purchase (Fruit stand Parcel)
4. Option Agreement (Chevron Parcel)
5. Agreement of Purchase and Sale (Chevron Parcel)
6. Agreement of Settlement
7. Option Agreement (King Parcel)
8. Development Agreement (Cultural Campus Parking Garage)
9. Development Agreement (Cultural Campus Office Building)
10. Agreement of Lease (Cultural Campus Office Building)
11. Unity of Title AgreementJDec1aration of Restrictive Covenants
in Lieu of Unity of Title Agreements.
12. Parking Garage Easement Agreement
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
CITY OF MIAMI BEACH
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. 2 CfS -00
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: April 12, 2000
Lawrence A. Levy ~
City Manager
FIRST READING PUBLIC HEARING
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING ON FIRST
READING/PUBLIC HEARING, THE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY, AND AMERICAN RIVIERA REALTY
COMPANY, IN ACCORDANCE WITH THE REQUIREMENTS OF THE
FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT,
FOR DEVELOPMENT OF AN OFFICE BUILDING AND RETAIL SPACE
AT THE SITE LOCATED AT 224 23RD STREET (THE "KING PARCEL"),
AND SETTING THE SECOND READING/PUBLIC HEARING FOR
CONSIDERATION OF THE DEVELOPMENT AGREEMENT ON MAY 10,
2000, AND FURTHER SETTING A PUBLIC HEARING REQUIRED
PURSUANT TO SECTION 82-36 THROUGH 82-40 OF THE CODE OF THE
CITY OF MIAMI BEACH, ON MAY 10,2000, FOR APPROVAL OF THE
LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, THE
MIAMI BEACH REDEVELOPMENT AGENCY, AND AMERICAN
RIVIERA REALTY COMPANY FOR THE SITE LOCATED AT 224 23RD
STREET (THE "KING PARCEL").
RECOMMENDATION:
Approve the Development Agreement on first reading for purposes of setting a second public
hearing on May 1 0, 2000.
BACKGROUND:
On February 23,2000, the City Commission directed the City Manager and the City Attorney to
prepare the legal documentation to effectuate the terms ofthe revised settlement agreement between
the City of Miami Beach ("CMB") and American Riviera Real Estate Company ("AR").
AGENDA ITEM R 1 E
DATE "-=.J 2..01)
T: \AGENDA \2000\APR 1200IREGULAR\AMERI224. CM
April 12, 2000
American Riviera - 224 23rd Street
Commission Memorandum
Page 2
To facilitate the negotiations, the City Attorney engaged the firm of Rollnick and Linden, P.A. to
assist and draft the attached Development Agreement for the Cultural Campus Office Building and
the additional documents listed below to effectuate the terms ofthe settlement agreement, including:
1. Agreement of Purchase and Sale (Ablon Parcel)
2. Option Agreement (Fruitstand Parcel)
3. Agreement of Sale and Purchase (Fruitstand Parcel)
4. Option Agreement (Chevron Parcel)
5. Agreement of Purchase and Sale (Chevron Parcel)
6. Agreement of Settlement
7. Option Agreement (King Parcel)
8. Development Agreement (Cultural Campus Parking Garage)
9. Agreement of Lease (Cultural Campus Office Building)
10. Unity of Title Agreement/Declaration of Restrictive Covenants in Lieu of Unity of
Title Agreements.
11. Parking Garage Easement Agreement
For purposes of this public hearing, the attached Development Agreement will be approved
on first reading and the aforementioned documents are also attached for your preliminary
review. It is anticipated that revisions will be made to the attached documents that will be
"red lined" for your easy reference at the May 10, 2000 second and final public hearing.
Pursuant to the provisions of City Ordinance 92-2783 (the "Shapiro Ordinance"), the lease of any
City-owned property for a period of five years or more, including option periods, is subject to the
following conditions:
· a Planning Department analysis
· a public hearing to obtain citizen input
· an advertised public bidding process
· an independent appraisal to determine the fair market or rental value of the property
Said Ordinance further provides that except for the public hearing and the Planning Department
analysis, the above referenced conditions may be waived by a 5/7ths vote of the City Commission
upon a finding that the public interest would be served by waiving such conditions. As such,
waivers will be required for the public bidding process and independent appraisal as a result of this
transaction contemplated as a settlement of ongoing litigation which is deemed to be in the City's
best interest. A public hearing will be held on May 10, 2000, and the Planning Department analysis
of the proposed Lease Agreement will be included for City Commission consideration on said date.
Development Regulations:
In accordance with the Florida Local Government Development Agreement Act, the City of Miami
Beach and American Riviera Realty Company are entering into a Development Agreement to
address, among other things:
TelAGENDA 12000lAPR 1200IREGULARIAMERI224. eM
April 12, 2000
American Riviera - 224 23rd Street
Commission Memorandum
Page 3
· the proposed development at the site
· the development regulations applicable to the site
· improvements to be constructed by the developer
. the timeframe by which the developer shall obtain all building permits and complete
construction, subject to unavoidable delays.
The City Commission must hold two public hearings to enter into a Development Agreement. This
resolution will approve the Development Agreement on first reading/public hearing and will set the
second reading/public hearing on May 10, 2000.
The subject City land is presently zoned Government Use (GU). The proposed public-private
development represents private use in the GU district. Pursuant to Section 142-423 ofthe City Code,
any such use requires review by the Planning Board prior to approval by the City Commission. On
April 25, 2000, the developer will present their proposed development project to the Planning Board,
outlining the uses and setting forth the applicable development regulations.
Pursuant to Section 142-425 of the City Code, the City Commission must confirm the development
regulations that apply as a result of such proposed private use to be the average of the requirements
in the surrounding districts, as determined by the Planning and Zoning Director. The Planning and
Zoning Director has determined that the development regulations for CD-3 will apply to this site and
said development regulation is confirmed in the Development Agreement.
ANALYSIS:
In accordance therewith, attached is the final revised settlement agreement, dated as of February 18,
2000, delineating the terms of the negotiated transaction.
The City of Miami Beach (CMB) will purchase the Ablon parcel from AR for $1,150,000 or $92/sf
and pay $350,000 to settle all legal costs and expenses. For a period of two (2) years, AR will have
the option to purchase the Fruitstand parcel conditioned upon its construction of a minimum 300
space garage, for $1,380,000, or $92/sf. If AR exercises this option, it will also have the option to
lease the King parcel to construct a retail/office project within the existing development envelope
under the City's present Land Use Regulations. If AR does not exercise its option, the CMB will
have an option, for six (6) months thereafter, to purchase the Chevron parcel for $1,750,000,
including the fee interest or for $1,450,000 for the leasehold interest. The CMB will have six (6)
months to initiate eminent domain proceedings if AR does not deliver the fee interest in the property.
Although the purchase price ofthe Ablon parcel may seem somewhat high in light of the price AR
paid for the parcel two years ago, the Administration believes that it is a fair price due to:
(1) the existing leases on the Ablon that AR has executed with other parties (for a
nightclub and parking on the property for which the City may be liable for severance
damages);
(2) the uncertainty of further eminent domain litigation and all other pending litigation
being terminated by the settlement;
Te \AGENDA \2000\APR 1200IREGULAR\AMERI224. CM
April 12, 2000
American Riviera - 224 23rd Street
Commission Memorandum
Page 4
(3) the certainty of being able to move forward with construction of the Library as soon
as the construction documents can be bid out; and
(4) the option on the Fruitstand being offered at the same price per square foot.
The terms of the proposed Development Agreement for the Cultural Campus Office Building and
the associated documents are delineated below.
TERMS:
American Riviera Realty Company
Owner:
City of Miami Beach
Developer/Tenant:
American Riviera Realty Company
Principal:
100% - Ron Bloomberg
Parcel:
Approximately 10,000 sf of King Parcel located at 224 23rd
Street.
Project Description:
Approximately 48,000 sf office/retail, subject to City zoning
laws and subject to City/Stern review.
Project Cost:
TBD
Funded Equity:
TBD
Option Period:
24 months, exercisable only if option on Fruitstand IS
exercised
Possession/Closing Date:
30 days after option exercised but no later than 24 months
from execution, subject to Library construction staging needs.
Lease Term:
50 years with 2, 20-year extension options
Construction Commencement:
30 days after Closing Date
Security Deposit:
TBD
ConstructionlPermitting:
Subject to unavoidable delays.
Preliminary Plans and Specs:
DRB/HP Application:
No later than _ weeks from closing date.
No later than _ weeks from approval of preliminary plans and specs
approvals.
No later than _ weeks from DRBIHP approval
No later than 2 years from Possession date
Building Permit:
Construction Completion:
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April}2, 2000
American Riviera - 224 23rd Street
Commission Memorandum
Page 5
CO Date:
Earlier of date upon which TCO/CO is obtained or 2 years
from construction commencement date.
Base Rent:
The base rental rate is based upon the size of the lot area
leased at $92/sf @ a 10% return to the City, subject to
escalations. The lease rental rate will be tied to the leasing as
follows:
Year 1 - $0 - during construction
Year 2 - $0 - during construction
Year 3 - $ rent % ofleased up space x $92,000
Year 4 - $ rent % of leased up space x $92,000
Year 5 - $ rent % of leased up space x $92,000
Year 6 - $92,000 stabilized base rent
Percentage Rent Beginning in year 6, and every Lease Year thereafter,
(as a percentage of gross revenues): percentage rent of2.5% of gross revenues will be calculated
in addition to base rent.
Re-appraisals:
If developer exercises extension options, the land will be re-
appraised, based upon the terms set forth in the Lease
Agreement, to determine the new base rent based upon the
value in use in the 49th year and 69th year. The Base Rent will
never be less than the prior year's base rent.
Real Estate Taxes:
Developer/Tenant will be responsible for all real estate taxes.
Included and defined as Additional Rent in the event taxes are
abated or reduced. If taxes are reduced as a result of decline
in property values in the area, this provision will not apply.
Prohibited Uses:
.
unlawful/illegal businesses or any use which is public
nUIsance
tatoo parlors, psychics, palm and tarot card readers,
body piercing shops or gambling casino
for any use involving ownership structure such as
time share, cooperative, etc.
.
.
Parking Easement:
Parking shall be provided in the Parking Garage to be
constructed on the FruitstandlChevron parcel at comparable
City rates. City will retain parking easement rights to assure
parking requirement compliance for the office building, the
Ballet and the Library.
Sale:
Sale of the project will be subject to City consent.
T: \AGENDA \2000\APR 1200IREGULAR\AMERl224. CM
April 12, 2000
American Riviera - 224 23rd Street
Commission Memorandum
Page 6
Right of First Refusal:
City/Developer has the right of first refusal to purchase
other's interest in the Project.
Environmental Matters:
Property is leased "as is" and developer is responsible for
remediation
RECOMMENDATION:
The final Settlement Agreement enables the City to purchase the Ablon parcel and proceed with the
construction ofthe Library, and it enables the development of a garage if AR exercises its option on
the Fruitstand parcel. Further, if AR does not purchase the Fruitstand parcel, the City has the right
to purchase the Chevron leasehold or fee simple interest at a stated price, therefore gaining site
control and securing the potential development of a garage.
It has been determined that the development proposal presented herein requires Planning Board
review prior to final City Commission approval. As a result, the second hearing of the Development
Agreement and the public hearing required for the Lease Agreement should be set for May 10, 2000.
Therefore, it is recommended that the Mayor and City Commission approve the Development
Agreement on first reading/public hearing and set a second reading/public hearing on May 10, 2000,
at which time the City Commission will also consider approval ofthe Lease Agreement pursuant to
the requirements of Section 82-36 through 82-40 of the Code of the City of Miami Beach.
~c. ~
SR/CMC/rar
Te \AGENDA \2000\APR 1200lREGU LAR\AMERl224. CM