343-2000 RDA
RESOLUTION NO. 343-2000
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY, 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 A
MINIMUM 300 SP ACE PARKING GARAGE AND 25,000 SF RETAIL
SPACE AT THE SITE LOCATED AT 300 23RD STREET (THE
"FRUITST AND PARCEL") AND 340 23RD STREET (THE
"CHEVRON PARCEL") AND, AS AN ALTERNATIVE TO THE
FOREGOING, IN THE EVENT THE FOREGOING WILL NOT BE
CONSTRUCTED, IN REGARD TO THE PROPERTY LOCATED AT
340 23RD STREET (THE "CHEVRON PARCEL"), THE
DEVELOPMENT AGREEMENT MAY EXTEND THE TERM OF
THE APPROVALS OF THE DESIGN REVIEW AND HISTORIC
PRESERVATION BOARDS TO CONSTRUCT A 51,750 SF OFFICE
AND RETAIL PROJECT, 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 to, 2000, FOR APPROVAL OF THE
OPTION AGREEMENT AND THE PURCHASE AND SALE
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, THE
MIAMI BEACH REDEVELOPMENT AGENCY, AND AMERICAN
RIVIERA REALTY COMPANY FOR THE SITE LOCATED AT 300
23RD STREET (THE "FRUITST AND 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
Parking Garage 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 (Fruit stand Parcel)
4. Option Agreement (Chevron Parcel)
5. Agreement of Purchase and Sale (Chevron Parcel)
T: IAGENDA \2000lAPR 1200lRDA IAMERI300. RES
April J 2, 2000
American Riviera - 300 & 340 23rd Street - RDA
Resolution
Page 2
6. Agreement of Settlement
7. Option Agreement (King Parcel)
8. Development Agreement (Cultural Campus Office Building)
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; and
WHEREAS, in accordance with the Florida Local Government Development Agreement
Act, the City of Miami Beach, the Redevelopment Agency, and American Riviera Realty Company
are entering into a Development Agreement to address, among other things 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 CommissionlRDA Board 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
NOW THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and
Secretary 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 RDA Board will also consider
approval of the Purchase and Sale Agreement pursuant to the requirements of Section 82-36 through
82-40 of the Code of the City of Miami Beach.
lEST:
.. /Lal If r CLt du---
SECRETARY
1A
CHAIRMAN
PASSED and ADOPTED this 12th day of April, 2000.
LAL/CMC/rar
APPROVED AS TO
FORM & LANGUAGE
& FOR EXeCUTION
/ll/ W-:.. 'J/Wl
Red....lopment Agency Date
Gfllru'~"~f r:". ;0 I
T: \AGENDA 12000\APR 1200lRDA \AMERl300.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 ("AR"), 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/sf).
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 21st 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 aIIow 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 willnm 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 A venue 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$ALLICHRISTlNIBLOOMBG2. DOC
American Riviera/CMB/RDA
February 18, 2000
Page 3
FRUITST AND 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 sfretail (16,000 net useable sf)
Option Period: 2 Years from Execution
Option Price: $1,380,000 or $92/sfx lot sf.
Parking: . Cultural Campus users will have the parking rights for spaces in the garage at
comparable City parking rates.
. MCB/Library parking requirements to be met in the garage.
. ROS Replacement parking to be provided in the garage, if necessary.
. Parking easement agreement with City for King parcel office building.
Garage Parking All charges for parking in the Garage for Cultural Campus users, including, but not limited
Rates: to, the hourly, daily, weekly, monthly, evening flat rates and special event flat rates, shall
not be greater than the parking facility rate being charged by the City or the Miami Beach
Redevelopment Agency and shall be comparable with parking facility rates being charged
within the City. Parking rates shall not be increased for special events such as Art Deco
Weekend, boat shows or any similar events or activities that create high demand for parking
spaces.
F: ICMGRI$ALLICHRISTINIBLOOMBG2. DOC
American Riviera/CMB/RDA
February 18, 2000
Page 4
KING-OFFICE BUILDING LEASE TERMS:
TERMS:
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 691h 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:\CMGR\$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
ED! 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:\CMGR\$ALL\CHRISTIN\BLOOMBG2. DOC
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 (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. Development Agreement (Cultural Campus Office Building)
10. Agreement of Lease (Cultural Campus Office Building)
11. Unity of Title Agreement/Declaration of Restrictive Covenants
in Lieu of Unity of Title Agreements.
12. Parking Garage Easement Agreement
Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673-7193
Fax: (305) 673-7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 00- (~
TO:
Chairman and Members of the
Miami Beach Redevelopment Agency
Lawrence A. Levy ~
Executive Director
DATE: April 12, 2000
FROM:
FIRST READING PUBLIC HEARING
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, 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 A MINIMUM 300 SPACE PARKING GARAGE
AND 25,000 SF RETAIL SPACE AT THE SITE LOCATED AT 300 23RD
STREET (THE "FRUITST AND PARCEL") AND 340 23RD STREET (THE
"CHEVRON PARCEL") AND, AS AN ALTERNATIVE TO THE
FOREGOING, IN THE EVENT THE FOREGOING WILL NOT BE
CONSTRUCTED, IN REGARD TO THE PROPERTY LOCATED AT 340
23RD STREET (THE "CHEVRON PARCEL"), THE DEVELOPMENT
AGREEMENT MAY EXTEND THE TERM OF THE APPROVALS OF THE
DESIGN REVIEW AND HISTORIC PRESERVATION BOARDS TO
CONSTRUCT A 51,750 SF OFFICE AND RETAIL PROJECT, 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
OPTION AGREEMENT AND THE PURCHASE AND SALE AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, THE MIAMI BEACH
REDEVELOPMENT AGENCY, AND AMERICAN RIVIERA REALTY
COMPANY FOR THE SITE LOCATED AT 300 23RD STREET (THE
"FRUITST AND PARCEL").
RECOMMENDATION:
Approve the Development Agreement on first reading for purposes of setting a second public
hearing on May 1 0, 2000.
S()UTIl V()I~I:
l2edevel()pment I)lstnet
.genda Item
l
)ate
313
C+-12-0D
TIAGENDA 12000lAPR 1200lRDA IAMER1300.CM
April]2, 2000
American Riviera - 300 & 340 23rd Street - RDA
Commission Memorandum
Page 2
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 of the revised settlement agreement between
the City of Miami Beach ("CMB") and American Riviera Real Estate Company ("AR").
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 Parking Garage 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 (Fruit stand 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 Office Building)
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 sale of any
City-owned property 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 517ths vote of the City
CommissionlRDA Board 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 Purchase and Sale Agreement will be included for
City CommissionlRDA Board consideration on said date.
T: \AGENDA 12000\APR 1200lRDA \AMERI300. eM
April 12, 2000
American Riviera - 300 & 340 23rd Street - RDA
Commission Memorandum
Page 3
Development Re2ulations:
In accordance with the Florida Local Government Development Agreement Act, the City of Miami
Beach, the Redevelopment Agency, and American Riviera Realty Company are entering into a
Development Agreement to address, among other things:
. 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 CommissionlRDA Board 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). At the public hearing scheduled
on May 10, 2000, the zoning district classification shall be determined by the City Commission in
a manner consistent with the comprehensive plan. 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 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 ofthe 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;
T: \AGENDA 12000\APR 1200lRDA \AMERl300. eM
April J 2, 2000
American Riviera - 300 & 340 23rd Street - RDA
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 Parking Garage and
the associated documents are delineated below.
TERMS:
Owner/Seller:
American Riviera Realty Company
City of Miami Beach
DeveloperlPurchaser:
American Riviera Realty Company
Principal:
100% - Ron Bloomberg
Parcel:
Fruitstand Parcel located at 300 23rd Street
Purchase Price:
$1,380,000 (15,000 sf:J: x $92/sf)
Project Description:
300 space garage - minimum (If Stem plan is adopted,
parking demand study will be performed based on 3 year
projection)
25,000 +sfretail
Project Cost:
TBD
Funded Equity:
TBD
Option Period:
24 months
Closing Date:
30 days after option exercised but no later than 24 months
from execution.
Construction Commencement:
30 days after Closing Date.
ConstructionlPermitting:
Preliminary Plans and Specs:
DRBIHP Application:
Building Permit:
Construction Completion:
Subject to unavoidable delays.
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 closing date
CO Date:
Earlier of date upon which TCO/CO is obtained or 2 years
from construction commencement date.
Real Estate Taxes:
Developer/Purchaser will be responsible for all real estate
taxes.
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April 12, 2000
American Riviera - 300 & 340 23rd Street - RDA
Commission Memorandum
Page 5
Alternative Development:
In the event the foregoing will not be constructed, in regard
to the property located at 340 23rd Street, the Development
Agreement may extend the term of the DRB and HPB
approvals granted on the Chevron parcel to construct a 51,750
sf office and retail project.
Parking Rates:
Garage parking rates charged to Cultural Campus users shall
not be greater than the City/Agency rates.
Parking Easement:
Parking shall be provided in the Parking Garage to be
constructed on the Fruitstand/Chevron 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, and ROS replacement parking, if
necessary.
Sale:
Developer has the right to sell project, subject to right of first
refusal.
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 of the Library, and it enables the development ofa 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.
The second hearing ofthe Development Agreement and the public hearing required for the Purchase
and Sale Agreement should be set for May 10, 2000. Therefore, it is recommended that the Chairman
and Secretary approve the Development Agreement on first reading/public hearing and set a second
hearing/public hearing on May 10, 2000, at which time the RDA Board will also consider approval
of the Purchase and Sale Agreement pursuant to the requirements of Section 82-36 through 82-40
of the Code of the City of Miami Beach.
LAL/C~~
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