Loading...
HomeMy WebLinkAbout2006-26356 Reso RESOLUTION NO: 2006-26356 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO PROCEED WITH, AND TAKE ANY AND ALL REQUIRED ACTIONS RELATIVE TO THE CONDOMINIUMIZATION OF THE CITY-OWNED PROPERTIES LOCATED AT 1701 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, AND OLD CITY HALL, 1130 WASHINGTON AVENUE, MIAMI BEACH, FLORIDA, RESPECTIVEL Y WHEREAS, the City is the owner of the retail/office building located at 1701 Meridian Avenue, and (pursuant to its initial purchase of the facility) the City assumed the lease agreements of several commercial retail spaces located on the ground floor, as well as office spaces on the upper floors; and WHEREAS, the City-owned property referred to as "Old City Hall" and located at 1130 Washington Avenue, also houses certain commercial (office) tenants; and WHEREAS, the conversion of these City-owned buildings into condominiums is recommended in order to maintain (and/or otherwise support) some or all of the tax exempt status of these facilities; and WHEREAS, the City would continue to retain full control of said buildings. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the Administration and City Attorney's Office to proceed with, and take any and all required actions relative to the condominiumization of the City-owned properties located at 1701 Meridian Avenue, Miami Beach, Florida, and Old City Hall, 1130 Washington Avenue, Miami Beach, Florida. PASSED and ADOPTED this 11th day of ,2006 ATTEST: ~tP~ CITY CLERK Robert Parcher MAYOR David Dermer APPROVED AS TO FORM & LANGUAGE & FOR CUTION I~ Date JMG/TH/ACV/mis T:\AGENDAl2006loct1106lconsentlCondaminiumization City Buildings RES. doc COMMISSION ITEM SUMMARY Condensed Title: Resolution authorizing the City Manager and the City Attorney's Office to proceed with the process of convertin 1701 Meridian Ave and Old Ci Hall into condominium units. Ke Intended Outcome Su orted: Ensure well-maintained facilities. Issue: Should the City of Miami Beach convert City-owned buildings into Condominium Units? Item Summary/Recommendation: The City has paid property taxes on the entire 1701 Meridian Building (AKA 777 17m Street) and may be required to pay property taxes on the entire Old City Hall building due to tenant leases. The intention for both these buildings is that the City occupy the office space and that the ground floor level be available for commercial retail space. In some cases office space has also been leased. Condominiumization would allow the City to retain full ownership while isolating the portions occupied by City offices as tax exempt, limiting the amount of property taxes to the areas leased. This in no way obligates the City to lease space, it only sets up a mechanism in which the current tenants will not continue to require the entire building to be taxable, in the case of 1701 Meridian, and give the City the option of utilizing commercially leaseable space at Old City Hall. The Administration recommends that the Mayor and City Commission adopt the Resolution authorizing the Administration and the City Attorney's Office to proceed with the condominiumization of said buildinas. Advisory Board Recommendation: I n/a Financial Information: Source of Amount Account Approved Funds: 1 n/a D 2 3 4 eSPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin : Ana Cecilia Velasco, Asset Manager x 6727 Si City Manager 006\oct1106\consent\Condominiumization City Buildings S m ,., MIAMI BEACH AGENDA ITEM DATE G7H /I)-//-Il~ e MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager y ~ October 11, 2006 () FROM: DATE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY'S OFFICE TO PROCEED WITH, AND TAKE ANY AND ALL REQUIRED ACTIONS RELATIVE TO THE CONDOMINIUMIZATION OF THE CITY-OWNED PROPERTIES LOCATED AT 1701 MERIDIAN AVENUE, MIAMI BEACH, FLORIDA, AND OLD CITY HALL, 1130 WASHINGTON AVENUE, MIAMI BEACH, FLORIDA, RESPECTIVELY. ADMINISTRATION RECOMMENDATION SUBJECT: Adopt the Resolution. ANALYSIS The City currently owns two buildings in which commercial retail or office space is leased, 1701 Meridian and Old City Hall located at 1130 Washington Avenue. In the case of 1701 Meridian, a portion of the building is leased as office space or commercial retail space, and the entire building, as determined by the Miami-Dade County Property Appraiser, may be taxable. The City has appealed and has not received an approved tax exemption for the area that is occupied by the City. By converting the building into condominium units, the leased portion could be isolated and the City would receive the benefit of tax exemption for the portions occupied by City offices. In the case of Old City Hall, the building is presently tax exempt. However, the first floor of the building presents an opportunity for commercial and/or retail use. If the City were inclined to lease this space, then it may trigger a taxable event for the entire building, according to the Miami-Dade County Property Appraiser. In order to avoid this possibility altogether, it is recommended that this area be separated via a condominium structure. Although Old City Hall is undergoing renovations and will have no tenants under a lease agreement, including this building in the process of converting to condominium units would enable the City to lease space. Leases to Not-for-Profit groups would make the entire building eligible for taxation as well. The City Attorney's office has identified outside counsel who facilitated the conversion of buildings in the City of Coral Gables into condominium units. Additionally, a current survey is needed in order to proceed, which is available through Public Works and would not be a direct cash cost for the City. The City would retain full ownership of all units of the Condominium with the Mayor and Commissioners serving as the Condominium Association Board. JMGITH/ACV/mis T:\AGENDA \2006\oct1106\consent\Condominiumization City Buildings MEM.doc