2007-26666 ResoC 7f~
RESOLUTION NO. 2007-26666
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A FIFTH
AMENDMENT TO THAT CERTAIN AMENDED AND
RESTATED/CONSOLIDATED LEASE AGREEMENT BY AND
BETWEEN THE CITY OF MIAMI BEACH AND THE MIAMI BEACH
JEWISH COMMUNITY CENTER, INC. (JCC), FOR A PARCEL OF
LAND AND FACILITIES LOCATED AT 4221 - 4229 PINE TREE
DRIVE, MIAMI BEACH, FLORIDA, AMENDING THE AGREEMENT
TO EXTEND THE TIME PERIOD FOR THE JCC TO OBTAIN A
FINAL BUILDING PERMIT TO BE CONCURRENT WITH THE
DESIGN REVIEW BOARD ORDER AND EXTEND THE TIME
PERIOD FOR COMMENCEMENT OF CONSTRUCTION FOR THE
PROPOSED IMPROVEMENTS; AND SUCH OTHER CHANGESAS
MAY BE APPROVED BY THE CITY COMMISSION SUBJECT TO
FINAL REVIEW AND APPROVAL BY THE CITY MANAGER AND
CITY ATTORNEY.
WHEREAS, on June 3, 1981, the City first leased to the Jewish Community Centers of
South Florida, Inc. (JCCSF), City-owned property located at 4221 - 4229 Pine Tree Drive, also
known as lots 5, 6 and 7 of Flamingo Bay Subdivision, as recorded in Plat Book 6 at Page 101 of the
public records of Miami-Dade County, Florida ("Property") (Resolution 81-16678); and
WHEREAS, JCCFS's lease was amended and extended on three occasions, such that the
lease term was extended through October 31, 2015, with two additional ten-year options, and was
assigned to Miami Beach Jewish Community Center, Inc. ("JCC"), anot-for-profit corporation
(Resolutions 84-17863, 85-18280, and 88-19226); and
WHEREAS, on July 12, 2000, the Mayor and City Commission adopted Resolution No.
2000-23994 approving an Amended and Restated/Consolidated Lease Agreement ("Lease") with
the JCC for the Property, subject to referendum, which was duly held and approved, which included
provisions in Lease Paragraphs 15.4 and 15.5 that the JCC present Preliminary Plans and
Specifications to the City, and make application to the City's Design Review Board ("DRB") for
review and approval of same, no later than "three years from the Commencement Date" of the
Lease, which was November 8, 2003; and
WHEREAS, the City and JCC entered into a First Amendment to the Amended and
Restated/Consolidated Lease (Resolution 2003-25363) on October 15, 2003, extending certain
dates as provided for therein; and
WHEREAS, the City and JCC entered into a Second Amendment to the Amended and
Restated/Consolidated Lease (Resolution 2004-25720) on October 13, 2004, extending the time
periods for the JCC to apply to the City's Design Review Board, submit plans for the construction of
the proposed improvements to the Property, to obtain building permits and to complete construction
of the proposed improvements, and amending other provisions of the Agreement as were
appropriate under the circumstances; and
WHEREAS, the City and JCC entered into a Third Amendment to the Amended and
Restated/Consolidated Lease (Resolution 2006-26222) on June 7, 2006, extending the time periods
for the JCC to submit plans for the construction of the proposed improvements to the Property;
obtain a final building permit for; and such other changes as may be approved by the City
Commission subject to final review and approval by the City Manager and City Attorney; and
WHEREAS, the City and JCC entered into a Fourth Amendment to the Amended and
Restated/Consolidated Lease (Resolution 2007-26449) on February 14, 2007, extending the time
period for the JCC to obtain a final building permit for the proposed improvements; and
WHEREAS, the construction plans with the redesign of the internal layout of the buildings
have been submitted to the City Manager and the building permit application has been made to the
City; and
WHEREAS, while the JCC has secured Design Review Board approval for its proposed
improvements; said approval scheduled to expire in December 2007; and
WHEREAS, the JCC has not as yet secured approval or an Environmental Resource Permit
from the Miami-Dade County Department of Environmental Resources Management which has
delayed the JCC's permitting efforts; and
WHEREAS, the JCC has proposed a modification to Paragraphs 15.8 and 15.11, of the
Amended and Restated/Consolidated Lease Agreement, to address the above circumstance by
extending certain deadlines in the Lease; and
WHEREAS, the City Administration recommends that the Mayor and City Commission
approve the proposed amendments to the Amended and Restated/Consolidated Lease Agreement
with the exception that the extension of the building permit requirement be concurrent with the
Design Review Board Order or June 21, 2009 whichever occurs earlier.
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 approve a Fifth
Amendment to that certain Amended and Restated/Consolidated Lease Agreement by and between
the City of Miami Beach and the Miami Beach Jewish Community Center, Inc. (JCC), for a parcel of
land and facilities located at 4221 - 4229 Pine Tree Drive, Miami Beach, Florida, amending the
Agreement to extend the time period for the JCC to obtain a final building permit to be concurrent
with the Design Review Board Order, or June 21, 2009, whichever occurs earlier, and extending the
time period for commencement of construction for the proposed improvements; and such other
changes as may be approved by the City Commission subject to final review and approval by the
City Manager and City Attorney.
PASSED and ADOPTED this 17th day of October ,
ATTEST:
C'~
Robert Parcher, CITY CLERK a Dermer, MAYOR
APPROVED AS TO
F & LANGUAGE
1 R EXECUTION
~ / ~
Attorney D to
T:WGEN DA~2007~OCT1707\CONSE NTWCC5THAMEN D MENT. RES.DOC
COMMISSION ITEM SUMMARY
Condensed Title:
Resolution approving a fifth amendment to the Second Amended and Restated/Consolidated Lease
Agreement between the City and the Miami Beach Jewish Community Center, Inc. (JCC) .
Intended Outcome
~ Increase satisfaction with recreational programs ~
Supporting Data (Surveys, Environmental Scan, etc.):
Recreation programs and facilities in Miami Beach contribute to the quality of life for residents within
'the City; 79% of residents rated overall quality of the recreation programs and facilities as excellent or
good.
Issue•
Should the Mayor and the City Commission approve the fifth amendment to the lease?
Item SummaryiRecommenaation:
The City and the JCC are proposing a fifth amendment to that Second Amended and
Restated/Consolidated Lease Agreement to extend the time period an additional six months for the JCC
to obtain a final building permit for the proposed improvements and extend the date of construction
commencement from within sixty (60) days from date of obtaining permit to one hundred twenty (120)
days from permit.
City Staff recommends that the extension to obtain a building permit be changed to be concurrent with the
Design Review Board Order which will alleviate the JCC having to request any additional extensions on
the specific deadline tied to the building permit and allows for a streamlined process. Additionally, City
Staff recommends the requested extension of the date of commencement.
The Administration recommends that the Mayor and City Commission adopt the Resolution approving the
fifth amendment to the lease agreement.
Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 n/a
2
3
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Ana Cecilia Velasco, Asset Manager x 6727
Si n-Offs•
Dep Director s• nt City Manager City Manager
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AGENQA ITEM C ~
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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
FROM: Jorge M. Gonzalez, City Manager
DATE: October 17, 2007
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING A FIFTH AMENDMENT TO THAT
CERTAIN AMENDED AND RESTATED/CONSOLIDATED LEASE
AGREEMENT BY AND BETWEEN THE CITY OF MIAMI BEACH AND THE
MIAMI BEACH JEWISH COMMUNITY CENTER, INC. (JCC), FOR A PARCEL
OF LAND AND FACILITIES LOCATED AT 4221 - 4229 PINE TREE DRIVE,
MIAMI BEACH, FLORIDA, AMENDING THE AGREEMENT TO EXTEND THE
TIME PERIOD FOR THE JCC TO OBTAIN A FINAL BUILDING PERMIT TO BE
CONCURRENT WITH THE DESIGN REVIEW BOARD ORDER AND EXTEND
THE TIME PERIOD FOR COMMENCEMENT OF CONSTRUCTION FOR THE
PROPOSED IMPROVEMENTS; AND SUCH OTHER CHANGES AS MAY BE
APPROVED BY THE CITY COMMISSION SUBJECT TO FINAL REVIEW AND
APPROVAL BY THE CITY MANAGER AND CITY ATTORNEY.
ADMINISTRATION RECOMMENDATION -
Adopt the Resolution.
ANALYSIS
Original Lease:
On June 3, 1981, the City first leased to the Jewish Community Centers of South Florida,
Inc., City property at 4221 Pine Tree Drive, also known as lots 5, 6 and 7 of Flamingo Bay
Subdivision, as recorded in Plat Book 6 at Page 101 of the public records of Miami-Dade
County, Florida. (Resolution 81-16678).
Lease, as Amended and Extended:
The Lease was amended and extended on three occasions, such that the lease term
extended through to October 31, 2015, with two additional ten-year options, and was
assigned to Miami Beach Jewish Community Center, Inc., anot-for-profit corporation
(Resolutions 84-17863, 85-18280, and 88-19226).
Amended and Restated/Consolidated Lease:
On July 12, 2000, the Mayor and City Commission adopted Resolution No. 2000-23994
approving an Amended and Restated/Consolidated Lease Agreement, subject to
referendum (subsequently approved by voters at a November 7, 2000, Special Election),
which incorporated the following:
1. Term was extended for 99 years, to 2099.
2. Permitted uses would include recreational, cultural, educational, social service and
minor and incidental religious uses.
Commission Memorandum -JCC Fifth Amendment
October 17, 2007
Page 2 of 5
3. Provided for payment of fair market value and appraisal methodology for the area to
be used for religious services and use fees for expanded religious uses limited to a
maximum of 10 holidays per year.
4. Set forth construction parameters, specifically addressing review requirements
(including Design Review Board review and approval), construction commencement
and completion deadlines, and required a minimum initial investment of $2 million in
improvements for which a building permit must be issued within five (5) years from
the commencement of the Lease, subject to reasonable extensions.
5. Construction which was previously restricted to two (2) lots would be permitted on all
three (3) lots, in accordance with the concept plan.
6. In the event the required referendum failed, the Lease would revert to the previously
existing lease term.
7. JCC agreed to indemnify, defend and hold the City harmless in the event of
challenges to the Lease and referendum.
8. By separate agreement, the JCC agreed to hold harmless, indemnify and defend the
City from challenges related to the Lease and referendum, from the time of the
adoption of the subject resolutions, and reimburse the City for all costs associated
with the referendum.
The referendum appeared on the November 7, 2000 ballot, and was approved by he
respective voters. .
First Amendment to the Amended and. Restated/Consolidated Lease:
The JCC formally requested that the. City. consider amending the Lease Agreement by
modifying Section 15.5 thereof by extending, bjr a one (1) year period, the date by which the
JCC must apply for DRB approval. On October 13, 2003, the Mayor and City Commission
adopted Resolution No. 2003-25363, extending the previously existing deadline .for
submission to the DRB, from November 8, 2003 to November 8, 2004, in order to allow the
JCC sufficient time to secure the necessary financial backing to ensure that the proffered
plan may be fully developed. Said Resolution also served to amend and clarify that section
of the Lease that defines the "Commencement Date", which had not been previously filled-in
in the Agreement, establishing the Commencement Date as November 8, 2000 (the day
after the referendum that approved the Lease).
Second Amendment to the Amended and Restated/Consolidated Lease:
The City and JCC entered into a Second Amendment to the Amended and
Restated/Consolidated Lease (Resolution 2004-25720) on October 13, 2004, extending the
time periods for the JCC to apply to the City's Design Review Board, submit plans for the
construction of the proposed improvements to the Property, to obtain building permits and to
complete construction of the proposed improvements, and amending other provisions of the
Agreement as were appropriate under the circumstances as follows:
SEE TABLE ON NEXT PAGE
Commission Memorandum -JCC Fifth Amendment
October 17, 2007
Page 3 of 5
Note: Calculated outside dates in arentheses
Para Item Description Original Adjusted Adjusted
calculated outside dates in arentheses 2003 2004
2.1 Commencement Date 11/08/00 Same Same
15.4 City Proprietary Review Three (3) years from Commencement Date. Same 02/08/05
Prelimina Plans 11/08/03
15.5 DRB submittal Three (3) years from Commencement Date. 11/08/04 05/06/05
Prelimina Plans 11/08/03
15.7 City Proprietary Review Twelve (12) months from DRB approval, no Same Within twelve
(Construction Plans) later than five (5) years from Commencement (12) months
Date, extended by appeals. (11/08/05) from DRB
approval,
extended by
third party
a eats onl .
15.8 Obtain Building Permits Five (5) years from Commencement Date. Same Six (6) years
(11 /08/05} from
Commenceme
nt Date.
11 /08/06
15.11 Construction Sixty (60) days after all permits and approvals Same Sixty (60) days
Commencement are issued, no later than five (5) years from after all
Commencement Date. permits and
(11/08/05) approvals are
issued.
01 /07/07
15.12 Construction Completion Two (2)`years from issuance of full Building Same Same
Permit. 11 /08/07 11 /08/08
Third Amendment to the Amended and Restated/Consolidated Lease:
The City and the JCC entered into a Third Amendment to the Amended and
Restated/Consolidated Lease (Resolution 2004-25720) on June 7, 2006, extending the time
periods for the JCC to secure Design Review Board approval for its new design, changes to
the internal layout and program of the proposed buildings delayed the completion of the
construction drawings. The redesign of the internal layout of the buildings made it impossible
for the JCC to comply with the Lease's deadlines related to the submittal of construction
plans to the City Manager and the obtaining of a final building permit.
The JCC proposed certain modifications to Paragraphs 15.7 and 15.8, of the Second
Amended and Restated/Consolidated Lease Agreement, to address the above
circumstances, as follows:
15.7 City Proprietary Review Twelve months from DRB approval Proposed sixteen months from
Construction Plans 6/21/2006 DRB a royal 10/15/06
15.8 Obtain Building Permits Six years from the commencement date Six years and three months
(11/8/2006) from the commencement date
2/5/2007
Fourth Amendment to the Amended and Restated/Consolidated Lease:
While the JCC has secured Design Review Board approval for its new design, submitted
construction plans with the redesign of the internal layout of the buildings to the City
Commission Memorandum -JCC Fifth Amendment
October 17, 2007
Page 4 of 5
Manager and a building permit application has been made to the City, the JCC has not as
yet secured approval or an Environmental Resource Permit from the Miami-Dade County
Department of Environmental Resources Management which has delayed the JCC's
permitting efforts.
Additionally, demolition scheduled for the summer would interfere with the JCC's ability to
provide the summer day camp that serves approximately 250 children every year. The
success of the JCC's community programs is dependent on the continuation of services for
the residents of Miami Beach and disruption during the summer months would hinder the
mission of the JCC.
Therefore, the JCC has proposed a modification to Paragraph 15.8, of the Second Amended
and Restated/Consolidated Lease Agreement, to address the above circumstances, as
follows:
15.8 Obtain Building Permits Six years from the commencement date Seven years from the
(11/8/2006) commencement date
11 /8/2007
Proposed Fifth Amendment to the Amended and Restated/Consolidated Lease:
The construction plans with the redesign of the internal layout of the buildings have-been
submitted to the City Manager and the building permit application has.been made to the City.
Although the JCC has secured Design Review Board" approval for its proposed
improvements; said approval scheduled to expire in'December-2007 which may necessitate
the JCC to return to the Design Review Board for reapplication.
Additionally, the JCC has not as yet secured approval or an Environmental Resource Permit
from the Miami-Dade County Department of Environmental Resources Management which
has delayed the JCC's permitting efforts.
The JCC has proposed a modification to Paragraphs 15.8 and 15.11, of the Amended and
Restated/Consolidated Lease Agreement, to address the above circumstance as follows:
15.8 Obtain Building Permits Seven years from the commencement Seven years and six months
date (11/8/2007) from the commencement date
5/8/2008
15.11 Commencement of Sixty (60) days from issuance of building One hundred twenty (120) days
Construction ermit from issuance of buildin ermit
City staff does not concur with the time extension request for obtaining a building permit due
to the timing of the Design Review Board Order which expires on December 21, 2007.
Should the DRB order expire, it would necessitate the JCC to reapply to the DRB which may
result in an additional 12-18 months. If the reapplication results in any design changes, the
JCC could potentially be required to resubmit to the City a concept plan which would result in
additional changes to the Amended and Restated/Consolidated Lease Agreement. In order
to alleviate any additional requests for extension, which is anticipated with the original
request, and to streamline the process to be consistent with the City permitting
requirements, City staff recommends the following:
Commission Memorandum -JCC Fifth Amendment
October 17, 2007
Page 5 of 5
15.8 Obtain Building Permits Seven years from the commencement Concurrent with the DRB
date (11/8/2007) order, or June 21, 2009,
whichever is earlier.
15.11 Commencement of Sixty (60) days from issuance of building One hundred twenty (120) days
Construction ermit from issuance of buildin ermit
The City Administration recommends that the Mayor and City Commission approve the
proposed amendments to the Second Amended and Restated/Consolidated Lease
Agreement by and between the City of Miami Beach and the Miami Beach Jewish
Community Center, Inc. (JCC), for a parcel of land and facilities located at 4221 - 4229 Pine
Tree Drive, Miami Beach, Florida, amending the Agreement to extend the time period forthe
JCC to obtain a final building permit for the proposed improvements and increase the
construction commencement to within one hundred twenty days from issuance of building
permit.
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T:WGEN DA~2007\oct1707\Consent~JCC5thAmendment. ME M.doc
10/1012007 15:02 3053776222 BERCOW RADELL
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VIA I~AND DELIVERY
Octoaer la, 2a07
Mr. J~;,xge Gonzalez
City ;',Manager
City +:.f Miami Beach
City +:+.f Miami Beach City kMall
l~aa ; convention Centex Drive
Miarx•~.i Beach, FL 33139
PAGE 01/07
Re: f{equest for Revised Lease ]deadlines far obtaining Building Permit and
Beginning Canstxuction for New Miami $each Jewish Community Center
far the property located at 4221-29 Pine Tree Drive, Miami Beach, IiL
Dear :'+Mr. Gonzalez:
Tltis law firm represents the 1Vliaxni Beaclz Jewish Community Centex (the
„JCC''') in connection with its ef,#orts to redevelop and expand the JCC's
recrer.tional and cultural facilities on tb.e City-owned property at 4221 Pine Txee
Drive. As you know, the City axed the JCC executed an Amended and
Resta~:ed/Consolidated Lease (the "Lease") far the Pine Tree Drive parcel in July
of 2at;i7. The Lease was entered into with the understanding that the JCC would
construct new improvements valued at no less than two (2) million dollaxs ozt the
properrty. The Lease has subsequently been amended four times.
Fourth A;mendrnent to Lease. The mast recent a,xnendment to the Lease
invol•~~ed a request to zxt~,odify the deadlines in the Lease far obtaining final
building permits. This amendment had become necessary because of changes
that load been made to the interior design and delays in the JCC's fund raising
effort~~.
The City Commission approved the fourth amendment to the Lease,
establishing Naverxtber S, 2QQ7 as the deadline for the JCC to obtain to the
neces~~ary building permits.
Current Status. The JCC has filed a building permit application (filed on
Octotirer 13, 2006) and diligently pursued the approvals a# both City departments
and tl•~e releva.rtt County agencies. It has become appa,xent, however, that the
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10/10!2007 15:02 3053776222 BERCOW RADELL PAGE 02107
1vlr. J rarge Gonzalez
City h~anager
October 10, 2007
Page ;?
JCC'~~rill not be able to meet the Lease's November 8, 20()7 deadline for obtaining
building permits for the proposed improvements.
Permitting Issues. The jCC has encountered several significant technical
roadl:~locks in the building permit process. Pox example, the JCC has not yet been
able o secure the approval of an Envixorunental Resouxce Permit from the
Nlian-.i-Dade County Department of I~nvironmental Resources Management.
This ic3sue, as well as the inherent complexity involved ix~ securing permits #ox a
Iarge institutional development on property owned by the City, has significantly
delay~,~d the JCC's permitting efforts.
(7thex Causes of Dela .There are also fundraising issues that will require
a del.;3y xn the completion of the building permit process and the start of
construction. As you may be aware, the cost of construction has skyrocketed
since L17e JCC redevelopment plan was first conceived and approved. The Lease
requires the development of improvements valued at no less than two (2) xnil,lzon
dollar s. It now appears that the proposed developzx~ent plan will cost
apprc::ximately twenty (20) million dollars, ten times the cost originally
concE~ived. The JCC has secured cash and pledges exceeding five (5) million
dolls : s but will not be able to proceed f oz'ward on the construction plan until at
least :sixteen (16) million dollars in cash or pledges have been obtained. The JCC
is working diligently to raise the necessary funds, but will need additional time.
Requested .fl.mendments. The JCC is requesting two changes to the Lease.
Paxag;raph 75.8 of the Lease xKOw requires the.JCC to obtain a building permit for
the redevelopment plan within seven years from the "Con-~xnencement Date" of
the Le-ase. The Coxnuxtencernent Date of the Lease is November 8, 2000, which
wouL:l. result in a deadline for obtaining a building permit of November 8, 2007,
The jc~C hereby requests an amendment to Paragraph 15.8 to provide that the
build ir.1g permit would need to be obtained within seven years and six months of
the C:~mmeneement Date, ax Ivlay 8, 200$. The JCC is further requesting an
amendment to Paragraph 15,11 of the Lease to alldtnr construction to commence
withi:c. X20 days of the issuance of the pexrnit. T1~e current terms of the Lease
requi;ced actual construction to commence within sixty (60) days following the
issuance of the permit.
Conclusion. The JCC looks ~oz ward to continuing its Iong and mutually
benefi~~ia1 relationship with the City of Miami Beach. App~•QVing the requested
amenc'Iments to the Lease would help ensure that the improvexxtents that will be
BERCOVY RAC~LL & Fcf~NAN DMZ
SONiNO. LAND USL~ AHFj ENVIRONMENTAL 1„AW
10110/2007 15:02 3053776222 BERCOW RADELL PAGE 03!07
Mx, ] ~~rge Gonzalez
City ::-~Iaxtager
Octol;aer 70, 2047
Page 3
mad,_ to the JCC px'operty will be well suited to the community's present and
futux ~ ~ needs. We are enclosiang a draft of a Fifth Amendment to the Lease
incor:~oratxng the proposed changes. Once you have had a chance to review this
IetEer~ and the Fifth ,F~mendment to the Lease, please ask one o~ your staff to give
me a, ;gall at (305) 377..6229 to discuss the issue.
Sincearely,
Gr
cc: Jose Smith, City Attorney with encl.)
Gaz~y Held, First Assistant City Afitorney (with encl.)
Tim Hemstreet, Assistant City Manager (with ex~c1.)
Jorge Gomez, Plaxuning Director (with encl.}
Ana CECelia Velascv, Office of Asset Ma,nagernent (with encl.)
Alicia Rothschild, Director
Todd Tragash, AIA
Stanley Arkin
Jeffrey Bercow, Esq.
BcRCC11M RAD~U., ~ FcRNANDGZ
20NtN4Y. L,q}yp U9E A1VO L~NVIggN MENTAL LAW