HomeMy WebLinkAbout2006-26246 Reso
RESOLUTION NO.
2006-26246
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AMENDMENT NO.1
TO THE VACATION AGREEMENT BETWEEN THE CITY OF MIAMI
BEACH AND AR&J SOBE, LLC, DATED FEBRUARY 23, 2005; SAID
AMENDMENT PROVIDING FOR UNIFORMITY OF DATES IN THE
VACATION AGREEMENT TO COINCIDE WITH THE DATES IN THE
DEVELOPMENT AGREEMENT, WITH RESPECT TO DEVELOPER'S
DEADLINE 1) WITHIN WHICH TO EXECUTE A SUPERMARKET
LEASE FOR THE FIFTH AND ALTON PROJECT; AND 2) FOR
COMMENCEMENT OF CONSTRUCTION OF THE PROJECT.
WHEREAS, on February 23, 2005, in consideration of the public benefits being
provided by AR&J Sobe, LLC (Developer) with respect to Developer's development of the
proposed Fifth and Alton Project (Project), the Mayor and City Commission adopted
Resolution No. 2005-25827, approving and authorizing the vacation of the City's rights to
an alley located adjacent to the proposed Project (the Alley); and
WHEREAS, the Vacation Agreement contains reverter and/or reconveyance
provisions in the event Developer does not enter into a supermarket lease on or before
eighteen (18) months after the effective date of the Vacation Agreement (which is February
23, 2005), or in the event Developer does not Commence Construction of the Project (as
said term is defined in the Development Agreement referenced below) on or before
September 1, 2006; and
WHEREAS, on May 16, 2005, the Mayor and City Commission adopted
Resolution No. 2005-25899, approving the Development Agreement between the City and
Developer, for the development of the Project; and
WHEREAS, the Development Agreement contains provisions that require
execution of a supermarket lease on or before the "Outside Date" (which is November 18,
2006), and Construction Commencement of the Project prior to March 1, 2007; and
WHEREAS, due to the time that passed between the approval of the Alley vacation
and Vacation Agreement and the approval of the Development Agreement, the deadlines
for the execution of a grocery lease and the Commencement of Construction, as initially set
forth in the Vacation Agreement, need to be amended to be consistent with the dates
referencing same in the Development Agreement.
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 approve and authorize the Mayor and City Clerk to execute
Amendment NO.1 to the Vacation Agreement between the City of Miami Beach and AR&J
Sobe, LLC, dated February 23,2005; said Amendment providing for uniformity of dates in
the Vacation Agreement to coincide with the dates in the Development Agreement, with
respect to Developer's deadline 1) within which to execute a supermarket lease for the
Fifth and Alton Project; and 2) for Commencement of Construction of the Project.
PASSED and ADOPTED this 12th day of Jul
,2006.
ATTEST:
. ~'2.~~~
.L, CITY CLERK' J
0' .' . Robert Parcper
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David Dermer
APPROVED AS TO
FORM & LANGUAGE
& fOR EXECUnON
7ltf/ob
r
Date
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving an amendment to the Alley Vacation Agreement with AR&J Sobe, LLC, for
the ro'ect located at Fifth Street and Alton Road.
Ke Intended Outcome Su orted:
Increase Parking Opportunities
Issue:
Shall the City Commission amend the Alley Vacation Agreement with the Developer approved on
February 23, 2005, to conform the deadline dates to the dates that are included in the Development
A reement that was subse uentl a roved on Ma 18, 2005?
Item Summary/Recommendation:
The Mayor and City Commission adopted Resolution No. 2005-25827, on February 23, 2005,
approving the vacation of an alley adjacent to the development known as "Fifth and Alton."
Subsequently, the Mayor and City Commission adopted Resolution No. 2005-25899, approving the
Development Agreement for the "Fifth and Alton" project. The two agreements have inconsistent
deadline dates for the execution of a grocery lease by the developer and the commencement of
construction of the project. This Resolution conforms the dates in the Vacation Agreement to the
dates that are in the Development Agreement.
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount Account Approved
Funds: 1 N/A
D 2
3
4
OBPI Total
Financial Impact Summary: N/A
Ci Clerk's Office Le islative Trac i
Kevin Crowder, Economic Development
Si n-Ofts:
Department Director
Assistant City Manager
City Manager
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m
,..,
MIAMI BEACH
AGENDA ITEM
DATE
C7E
7-/,).-o~
G MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
FROM:
Mayor David Dermer and Members of the City Commission
Jorge M. Gonzalez, City Manager ~
July 12, 2006 () U
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING THE ALLEY VACATION AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND AR&J SOBE, LLC, APPROVED
ON FEBRUARY 23, 2005.
TO:
DATE:
SUBJECT:
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On February 23,2005, in consideration of the public benefits being provided by AR&J Sobe
(Developer), the Mayor and City Commission adopted Resolution No. 2005-25827,
approving and authorizing the vacation of an alley located adjacent to the proposed Fifth and
Alton development project.
The vacation agreement is subject to the following reverter and/or reconveyance provisions:
(i) In the event Developer does not enter into a supermarket lease (as defined in the
proposed Development Agreement) on or before eighteen (18) months after the
Effective Date of the Vacation Agreement or Construction Commencement, as
defined therein, whichever comes first;
(ii) In the event Developer does not Commence Construction of the Project on or
before September 1, 2006;
(iii) In the event the Project is substantially modified from the Project approved by
the Historic Preservation Board and Design Review Board, as referenced in the
respective Board Orders issued in August 2004;
On May 16, 2005, the Mayor and City commission adopted Resolution No. 2005-25899,
approving a Development Agreement between the City of Miami Beach and AR&J Sobe,
LLC, for the development of Fifth and Alton, a vertical retail center and parking garage.
The Development Agreement defines "Outside Date" as the date which is eighteen (18)
months after the Effective Date (May 18, 2005), or the Construction commencement Date,
whichever shall fi rst occu r. The Development Ag reement further specifies terms under which
the City may terminate the agreement, which include:
Commission Memorandum - Alley Vacation Agreement
July 12, 2006
Page 2 of 2
(i) Developer has not obtained a Building permit for the project on or before
the Outside Date (November 18, 2006);
(ii) Developer has not Commenced Construction of the Project on or before
March 1, 2007;
(iii) City determines that the project and the public purposes to be derived from
it render the project unfeasible or unwarranted;
(iv) Developer has not obtained the fully executed Grocery Lease required by
Article 15 of the Development Agreement and delivered a copy thereof to
the City on or before the Outside Date.
Due to the time that passed between the approval of the Alley Vacation and the approval
of the Development Agreement, the deadlines for the execution of a grocery lease and
the commencement of construction are inconsistent.
Grocery Lease
Construction Commencement
Vacation Agreement
August 23, 2006
September 1, 2006
Development Agreement
November 18, 2006
March 1, 2007
The Administration discussed this inconsistency with the Developer during April and May of
this year. The attached resolution and amendment to the Vacation Agreement will conform
the deadline dates for execution of the grocery lease and construction commencement to
the dates specified in the Development Agreement.
JMG/TH/kc
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