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HomeMy WebLinkAbout2006-26368 Reso RESOLUTION NO. 2006-26368 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING AN AMENDMENT TO THE SETTLEMENT AGREEMENT BY AND BETWEEN THE RELATED GROUP OF FLORIDA AND THE CITY OF MIAMI BEACH CONCERNING LITIGATION OVERCERTAIN PARCELS IN THE SOUTH POINTE AREA OF MIAMI BEACH, INCLUDING BLOCK 1, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SUCH AMENDMENT, AND THE TAKING OF SUCH STEPS AS ARE NECESSARY AND APPROPRIATE FOR THE IMPLEMENTATION THEREOF. WHEREAS, East Coastline Development, Ltd. ("East Coastline") and West Side Partners, Ltd. ("West Side"), among others (collectively known as the "Porto fino Entities"), initiated litigation against the City of Miami Beach (the "City") and the Department of Community Affairs in various actions (the "Lawsuits"); and WHEREAS, the Porto fino Entities have conveyed certain parcels involved in such litigation to certain entities that are part of the Related Group of Florida (collectively known and referred to as the "Related Entities"); and WHEREAS, the City Commission on February 25, 2004 approved in concept, a settlement of the Lawsuits proffered by the Porto fino Entities and the Related Entities, which conceptual settlement is set forth in a Term Sheet attached to Resolution 2004-25509, as amended since such resolution to reflect the intent and agreement of the parties; and WHEREAS, the City, the Porto fino Entities, the Related Entities, and the Miami Beach Redevelopment Agency, on July 28, 2004 entered into a Settlement Agreement to avoid the expense, delay, and uncertainty of lengthy litigation, and to resolve such proceedings under the terms set forth in the Term Sheet, and the City Commission approved a Concept Plan according to which development on the properties subject to the Settlement Agreement would follow; and WHEREAS, the Related Entities have obtained Design Review Board approval on April 4, 2006 for a proposed development on Block 1, subject to the City Commission approving changes in the Concept Plan, because the proposed development deviates from the approved Concept Plan; and WHEREAS, the City Commission has referred the proposed changes to the Concept Plan to the Planning Board for that Board's review of such changes; and WHEREAS, the Planning Board reviewed the proposed changes and approved them subject to the following: (a) the required setback between new building and Taverna Opa should be respected and if there is some unused floor area, [foregoing this floor area] would create a greater public benefit, and (b) there should be a greater public benefit negotiated with the developer other than the open space being proposed. At a minimum some financial mechanism in perpetuity, such as a trust should be created independent of the developer, but funded by the developer, to ensure that this open space is adequately maintained and operated in a manner that enhances the public good; and WHEREAS, the Related Entities have negotiated with the City an Amendment to the Settlement Agreement that addresses the requirements of the Planning Board and the City Commission concludes that it is in the City's best interests to approve the Amendment to the Settlement Agreement and the Amended Concept Plan affecting properties the Related Entities owns as successor to the Porto fino Entities on Block 1. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS: That the City Commission hereby approves the Amendment to the Settlement Agreement, in substantially the form attached hereto as Exhibit "A," however, the Amendment is subject to the final review and approval of the City Manager and City Attorney. The Mayor and City Clerk are hereby authorized to execute such Agreement on behalf of the City, and the City Manager and City Attorney are authorized to take such actions as are necess 0 appropriate consistent with the intent of this resolution to implement the provisions 0 t e endment to the Settlement Agreement. This Resolution shall take effect immediately 0 i dopti n. PASSED and ADOPTED this 11 tl1<lay of Dc to r A~kP~ CITY CLERK Robert Parcher APPROVED AS TO RM AND LANGUAGE & FOR EXECUTION ~ DATE F:\atto\HELG\LITIGATI\Alaska\Block I 2006\TRG Oct 11 AGENDA Settlement Agreement Amendment adoption reso rev.DOC 2 COMMISSION ITEM SUMMARY Condensed Title: Two Resolutions amending the Concept Plan and Settlement Agreement between the Related Group and the City of Miami Beach concerning litigation over certain parcels in the South Pointe area, includin the ro e known as Block 1. Ke Intended Outcome Su orted: Increase satisfaction with development and growth management across the City. Issue: Should the Concept Plan and Settlement Agreement be amended? Item Summa IRecommendation: On July 28, 2004, the City of Miami Beach entered into a settlement agreement with various entities known collectively as the "Portofino Entities" and certain successors in interest that are part of the Related Group of Florida. As part of this settlement the City Commission adopted Resolution No. 2004-25651 which approved a concept plan for various parcels in the South Pointe area including a parcel known as Block 1. This concept plan was formulated after an exhaustive public process which involved not only the Commission but the City's Planning Board, the Design Review Board and the participation of neighborhood representatives which became known as the Collaborative Process. TRG-Block One, Ltd., one of the entities as successor in interest to the original settlement, is requesting modifications to the Concept Plan. At the April 11 , 2006, the City Commission discussed the request from TRG-Block 1, Ltd., regarding the previously approved Concept Plan. The request is summarized as follows: . Modify the Concept Plan for the area known as Block 1; . Initiate the necessary amendments to the City Code to effectuate the Modified Concept Plan; . Release of subsurface easement rights to the alley located in Block 1 for the purpose of creating certain underground improvements. The Administration recommends a rovin the Resolution. Adviso Board Recommendation: At its June 27, 2006 meeting, the Planning Board recommended approval by a vote of 4-0 (3 members absent . Financial Information: Source of Amount Account Approved Funds: 1 D 2 3 4 aSPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin : Jorge Gomez or Tom Mooney or Gary M. Held, City Attorney's office Si n-Ofts: Department Director Assistant City Manager City Manager \ T:\AGENDA\2006\oct1106\Regular\Comm Summ Block 1 settle agr and concept plan 101106.d ~ 'lIIIIIIIr MIAMIBEACH AGENDA ITEM R7 B DATE~ e MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: SUBJECT: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager 9.---y October 11, 2006 (J A RESOLUTION APPROVING A FIRST AMENDMENT TO THE SETTLEMENT AGREEMENT BY AND BETWEEN TRG-ALASKA I, LTD., TRG-ALASKA III, LLC AND TRG-BLOCK ONE, LTD. AND THE CITY OF MIAMI BEACH CONCERNING LITIGATION OVER CERTAIN PARCELS IN THE SOUTH POINTE AREA OF MIAMI BEACH, INCLUDING BLOCK 1, AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SUCH AMENDMENT, AND THE TAKING OF SUCH STEPS AS ARE NECESSARY AND APPROPRIATE FOR THE IMPLEMENTATION THEREOF. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING AN AMENDMENT TO THE CONCEPT PLAN FOR PROPERTY OWNED BY TRG-BLOCK ONE, LTD. ON BLOCK 11N SOUTH POINTE; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A TERMINATION AND ABANDONMENT AGREEMENT REGARDING THE SOUTH PORTION OF THE BLOCK 1 ALLEY; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A RELEASE OF SUBSURFACE RIGHTS REGARDING THE NORTH PORTION OF THE BLOCK 1 ALLEY; AND PROVIDING AN EFFECTIVE DATE. RECOMMENDATION Adopt the resolutions. BACKGROUND East Coastline Development, Ltd. ("East Coastline") and West Side Partners, Ltd. ("West Side"), among others (collectively known as the "Portofino Entities"), initiated litigation against the City of Miami Beach (the "City") and the Department of Community Affairs in various actions (the "Lawsuits"). The Portofino Entities have conveyed certain parcels involved in such litigation to certain entities that are affiliates of the Related Group of Florida (collectively known and referred to as the "Related Entities"). The City Commission on February 25, 2004 approved in concept, a settlement of the Lawsuits proffered by the Portofino Entities and the Related Entities, which conceptual settlement is set forth in a Term Sheet attached to Resolution 2004-25509, as amended since such resolution to reflect the intent and agreement of the parties. On July 28, 2004 the City Commission approved Resolution No. 2004- 25650, authorizing the execution of a Settlement Agreement with the Portofino Entities, the Related Entities, and the Miami Beach Redevelopment Agency, to avoid the expense, delay, and uncertainty of lengthy litigation, and to resolve such proceedings Commission Memorandum - Related - Block 1 October 11, 2006 Page 20f4 under the terms set forth in the Term Sheet, and the City Commission approved a Concept Plan according to which development on the properties subject to the Settlement Agreement would follow. The Related Entities have obtained Design Review Board approval on April 4, 2006 for a proposed development on Block 1, subject to the following: approval by the City Commission of: (a) modification of the Settlement Agreement and Concept Plan; (b) release of subsurface rights to the north % alley on Block 1; and (c) amendment to City Code to allow transfer of floor area across the alley, or transfer is otherwise approved by the Planning Director under existing City Code provisions. . The originally adopted Concept Plan provides for the height limit on the affected properties to not exceed 40 ft. fronting the street (actual concept plan reflects approximately a 30 ft. height fronting the street) and stepping up to 75 ft. for that portion of the structure that provides a 20 ft. setback, above the 40 ft. height, from the property line. The original Concept Plan depicted Related's properties within the Block developed as . three parcels: The South parcel, which includes the portion of the vacated alley, has retail/commercial uses fronting South Pointe Drive. Residential uses front Ocean Drive and Collins Avenue cladding a three story parking structure with one parking level below grade. An ilL" shaped tower rises above the parking and pool deck area up to the maximum height of 75 feet. The Northeast parcel reflects residential uses and a lobby on the ground floor fronting Ocean Drive, a parking structure along the alley and a slender, six story tower rising up the height limit of 75 feet. The Northwest parcel consists of a modest two and one half story residential building over a one story parking area. The City Commission referred the proposed changes to the Concept Plan necessary to develop the properties pursuant to the DRB-approved plan to the Planning Board for that Board's review of such changes. The Planning Board reviewed the proposed changes and approved them subject to the following: (a) the required setback between new building and Taverna Opa should be respected and if there is some unused floor area, [foregoing this floor area] would create a greater public benefit, and (b) there should be a greater public benefit negotiated with the developer other than the open space being proposed. At a minimum some financial mechanism in perpetuity, such as a trust should be created independent of the developer, but funded by the developer, to ensure that this open space is adequately maintained and operated in a manner that enhances the public good. The Related Entities have negotiated with the City a First Amendment to the Settlement Agreement that addresses certain conditions of the Design Review Board and the Planning Board, and the City Commission concludes that it is in the City's best interests to approve the Amendment to the Settlement Agreement. The City Commission previously approved the vacation of the south portion of the Block 1 alley, and the release of subsurface rights in the north portion of the Block 1 alley, Commission Memorandum - Related - Block 1 October 11, 2006 Page 3 0'4 conditioned upon compliance with conditions and costs of relocation of easements or provision of an equivalent easement as required by any and all utility companies occupying the alley and/or obtaining letters of no objection by such utility companies, and certification by the Public Works Department that such subsurface rights were not required for future subsurface utilities. The Department has provided such certification. The forms of the Termination and Abandonment Agreement with respect to the south portion of the Block 1 alley and of the Release of Subsurface Rights regarding the north portion of the Block 1 alley submitted by the Related Entities contain such conditions and the City Commission concludes that it is in the City's best interests to execute the Termination and Abandonment Agreement and the Release of Subsurface Rights. ANALYSIS TRG-Block One, Ltd., one of the entities as successor in interest to the original settlement, is requesting modifications to the concept plan as follows: South Parcel - Residential uses are removed from the ground floor of Collins Avenue with the exception of a recessed lobby entrance. The shape of the tower is changed into a "quarter circular" form. The parking structure is reduced by one floor, including one level below grade. A subterranean service tunnel below the alley connects the parking area to the Northeast parcel. Additionally, a pedestrian connector at the second floor over the Taverna Opa property connects this parcel to the Northeast parcel. Northeast Parcel - The gross floor area is increased by approximately 13,000 square feet. This floor area is a transfer of the development rights of the Northwest parcel. The resulting FAR for this parcel increases from 2.0 to 2.75. The parking structure is expanded by adding a full subterranean level, connected to the South parcel as described above, and expanded across the alley to connect with a subterranean parking area below the Northwest parcel. The residential tower is increased in width to accommodate the expanded floor area. Northwest Parcel - The developable floor area of 13,000 square feet (lot area=6,500 x 2.0 FAR) is transferred to the Northeast parcel. A subterranean parking level is added and connects below the alley to the Northeast Parcel. At grade, the lot is developed as a green space / private park accessible to the public, with the necessary ventilation equipment for the garage below. On April 4, 2006, the Design Review Board approved a condo-hotel project that comprises the lots in Block 1 owned by TRG-Block One, Ltd., bounded by Ocean Drive, 1st Street, Collins Avenue, and South Pointe Drive. The subject approval includes the subterranean parking garage, which will connect the parcels together below the shared alleyway, as well as an open park on the single lot located at the northwest corner of the block. An elevated bridge, connecting the two structures on the east side of the site, is proposed to span the site currently occupied by Taverna Opa Restaurant at 40 Ocean Drive. In light of the fact that an owners affidavit for the Taverna Opa property was not included in the application, the DRB continued this portion of the project to the May 2, 2006 meeting, in the event such connector bridge cannot be approved by Planning Department staff. Prior to such meeting, however, the owners affidavit was provided to staff, and that portion of the project pertaining to the connector bridge was removed from the May 2, 2006 DRB agenda and approved by staff. Commission Memorandum - Related - Block 1 October 11, 2006 Page 4 of 4 The First Amendment to the Settlement Agreement provides for the following modifications to the Settlement Agreement: (1) the Concept Plan would be permitted to be amended from time to time with the approval of both the Related Entities and the City Commission; (2) TRG-Alaska I, Ltd. would acknowledge receipt of a concept plan for public facilities in South Pointe Park as set forth in the BODR approved by the City Commission on July 27, 2005 and pursuant to Resolution 2005-25978. The City would need to provide written approval of the project cost as submitted by TRG-Alaska I, Ltd. and its contractor and provide a notice to proceed for TRG-Alaska I, Ltd. and its contractor to begin construction by no later than March 30, 2007, time being of the essence; failing which TRG-Alaska I, Ltd. would be released from any and all obligations to build such public facilities otherwise required by the Settlement Agreement; (3) upon receipt of final approvals for the modifications to the Concept Plan outlined in this memo and corresponding amendments to the land Development Regulations and receipt of an initial building permit for the development of the project on Block 1 as contemplated by the Modified Concept Plan, the Related Entities would contribute One Hundred Seventy Four Thousand Six Hundred Dollars towards the City's Beachwalk Project or other public project south of Fifth Street; (4) starting on the date that construction activity for the Block 1 project commences and continuing until that date that is two (2) years thereafter, the City shall provide to Related for construction staging purposes no less than 1,320 square feet of public right-of-way for construction staging, which at Related's request shall be as contiguous as reasonably possible, located immediately adjacent to the Block I Parcel. In exchange, Related shall pay to the City the aggregate sum of Twenty Six Thousand Four Hundred and no/100 Dollars ($26,400.00), payable on the same day that the contribution required under paragraph 3 above is due. If Related requires additional construction staging area and/or final certificates of occupancy have not been issued by the end of such two (2) year period, then at Related's request the City shall provide such additional land (to the extent available) and/or extend such two (2) year period in exchange for payment by Related to the City of the sum of Ten Dollars ($10.00) per square foot per annum. CONCLUSION The City Commission should (1) approve the First Amendment to the Settlement Agreement and Modified Concept Plan and (2) authorize the Mayor and the City Clerk to execute the Termination and Abandonment Agreement and the Release of Subsurface Rights, subject to the final review and approval of such documents by the City Manager and City Attorney. The City Manager and City Attorney should be authorized to take such actions as are necessary or appropriate consistent with the intent of the resolution to implement the provisions of the Amendment to the Settlement Agreement, the Termination and Abandonment Agreement and the Release of Subsurface Rights. The Resolution should take effect immediately upon its adoption. T:\AGENDA\2006\oct1106\Regular\TRG Alaska Memo to City Commission re Amendment to Settlement Agreement(v3) rev GMH.DOC Via Hand Delivery March 29, 2006 Mr. Jorge M. Gonzalez City Manager City of Miami Beach 1700 Convention Center Miami Beach, Florida 33130 Re: TRG-Block One. Ltd. Dear Mr. Gonzalez: Please let this correspondence serve as a formal request by TRG-Block One, Ltd. to be scheduled to appear before the City Commission at the April 11, 2006 scheduled meeting. As you are aware, the original "concept plan" for Block One was previously approved by the City Commission on July 28, 2004. TRG would like to appear before the Commission to seek approval of a modified concept plan. The modifications to the site plan include: the addition of a park in place of a building on one of the lots; underground parking; a slight curve in the condominium-hotel building: and a minimal increase in the width of the condominium building. A copy of the original concept .plan and the modified concept plan are attached for the Commission's review. TRG respectfully requests that the Resolution presented for approval by the Commission include an aclmowledgement of the propriety of an amendment to the City Code to effectuate the modified concept plan and aclmowledgement of the necessity of a release of subsurface easement rights for the purpose of underground . parking by lRG. . Exhibit "A" TRG acknowledges that any amendment to the City Code must first be presented to the Planning Board and then presented to the Commission for fmal approval. If the modified concept plan is approved by the Commission, TRG agrees to work with the City to draft an easement in a mutually acceptable form to facilitate the underground parking prior to their appearance before the Planning Board. Please advise if there is any additional information necessary to facilitate this request or any additional documents required. Thank you for your anticipated attention to this matter. Ene. ce: John K. Shubin, Esq. Matt Gorson, Esq. Joyce Bronson Gc~~ ~l{. t+EL~<? ) (g- ,ffl1d1pu.e~fs 2 426 a o --- ell l en r:: C\1 - a.. ..... c. Q) (,) r:: o o ,... ~ o o - a:J o 427 o . I I e i _ ,!!'1~_ If ,I --..,~--- I I I I I I --- ______J I I I I I I I -------1 I I I I I I ---~ I co .... It) ... ..,. ... SOU,-H POl",TE. ORl"E. 428 1I111~l* I i I I I Ii! 1!i .D.~[!,JI o o _M_. ell I :r I ! a: ~ .... '. ... ..........'.' 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AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING THE CODE OF THE CITY OF MIAMI BEACH, BY AMENDING SECTION 114-1, "DEFINITIONS," CLARIFYING THE MEANING OF "SITE;" AMENDING CHAPTER 142, "ZONING DISTRICTS AND REGULATIONS," ARTICLE II, "DISTRICT REGULATIONS," DIVISION 18, "PS PERFORMANCE STANDARD DISTRICT," CLARIFYING THAT FLOOR AREA MAY BE DISTRIBUTED ON BLOCK 1 THROUGH COVENANTS IN LIEU OF UNITY OF TITLE; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE. WHEREAS, the City of Miami Beach entered into a Settlement Agreement on July 28, 2004 with various entities known as the "Portofino Properties" and certain successors in interest that are part of the Related Group of Florida; and WHEREAS, the City Commission adopted Resolution No. 2004-25651 which approved a concept plan for various parcels in the South Pointe area including a parcel known as Block 1; and WHEREAS, the Concept Plan was fonnulated after an exhaustive public process which included citizen review and numerous public meetings and workshops through an ad hoc committee of concerned citi;zens and has also been reviewed by the City staff, the Planning Board, and the Design Review Board, all of whom have recommended approval thereof; and WHEREAS, the Concept Plan for the Block 1 Properties as that term is used in the settlement agreement and/or related documents, has been modified and the "Modified Concept Plan" has been reviewed by the City staff, the Planning Board, the Design Review Board, and citizens, all of whom have recommended approval thereof; and WHEREAS, the Modified Concept Plan has been approved by the City Commission through the adoption of Resolution No. , passed and adopted on the _ day of ----J 2006; and WHEREAS, the developments on the Block I Properties contemplated by the Settlement Agreement and Concept Plan require certain changes to the City's Land Development Regulations; and WHEREAS, this Ordinance is being adopted to allow impleinentation of that Modified Concept Plan through the adoption of certain changes to the Land Development Regulations to permit the development contemplated in such Modified Plan to proceed; and WHEREAS, this amendment to the Land Development Regulations was not required by the Settlement Agreement but was independently determined and recommended appropriate for Exhibit "B" adoption by the City staff and the Planning Board, based upon public input after public hearing, following all requirements of procedural due process attendant thereto; and WHEREAS, the Property in Block 1 affected by this amendment is described in section 142-698(4) as follows: "The "Block 1 Properties" shall mean Lots 1-3, 5-13 (and alley adjacent thereto), 17, Block 1, Ocean Beach Florida, PB2, Pg38, Public Records of Miami-Dade County." NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. Section 114-1, "Definitions," is hereby amended as follows: The following words, terms and phrases when used in this subpart B, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: * * * Site means a parcel of land considered as a unit, capable of being occupied by a use permitted in this subpart, possessing a continuous or unbroken boundary not divided by a public street, alley. right-of-way, private street, or waterway. Except for properties which are involved in the transfer of development rights where the site is that property within a project that has been approved under chapter 118, article V. * * * SECTION 2. Chapter 142, "Zoning Districts And Regulations", Article II, "District Regulations", Division 18, "PS Performance Standard District", Section 142-698, of the Land Development Regulations, is hereby amended to read as follows: Sec. 142-698. Commercial performance standard area requirements. * * * (d) Notwithstanding the above floor area ratio limits, 75 spaces of required parking located on Block 51 for the Retail Parcel pursuant to a covenant under section 130-36, shall not be counted as permitted floor area. Further, the floor area on the Block 51 Properties and the Block 51 Swap Property may be distributed among such properties by covenant in lieu of unity of title; and the floor area on the Block 1 Properties mav be distributed among such properties within the block bv covenant in lieu of unity of title. SECTION 3. REPEALER. All Ordinances or parts of Ordinances in conflict herewith be and the same are hereby repealed. SECTION 4. SEVERABILITY. If any section, subsection, clause or prOVISIon of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. 2 469 SECTION 5. CODIFICATION. It is the intention of the City Commission that this Ordinance be entered into the Code, and it is hereby ordained that the sections of this Ordinance may be renumbered or relettered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. The Exhibits to this Ordinance shall not be codified, but shall be kept on file with this Ordinance in the City Clerk's Office. SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect ten days following adoption. PASSED and ADOPTED this _ day of ,2006. MAYOR ATTEST: CITY CLERK APPROVED AS TO FORM AND LANGUAGE & FOR EXECUTION First Reading: Second Reading: "1 }1/' , Date Verified by: Jorge G. Gomez, AICP Planning Director Underscore denotes new language T:\AGENDA\2006\juI1206\Regular\Proposed Block 1 Ordinance rev GH 070606.DOC 3 470 Legal Description for Northwest Parcel Lot 17, Block 1, Ocean Beach Florida Subdivision, according to the Plat thereof, recorded in Plat Book 2, Page 38, of the Public Records of Miami-Dade County, Florida. Exhibit "C"