2000-23885 RESO
RESOLUTION NO. 2000-23885
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE
CITY MANAGER TO EXECUTE LETTERS OF AGREEMENT
WITH (i) INTEGRA REALTY RESOURCES FOR AN AGGREGATE
FEE NOT TO EXCEED $20,000, AND (ii) ABRAMSON &
ASSOCIATES, INC. FOR AN AGGREGATE FEE NOT TO EXCEED
$20,000, FOR CONSULTING, APPRAISAL AND ADVISORY
SERVICES IN CONNECTION WITH THE PROPOSED PUBLlC-
PRIVATE DEVELOPMENT AT THE nND STREET SITE, AND
WAIVING BY 5/'fITI VOTE THE PUBLIC BIDDING PROCESS IN
CONNECTION WITH THE PROCUREMENT OF THESE
SERVICES, FINDING SUCH WAIVER TO BE IN THE BEST
INTEREST OF THE CITY.
WHEREAS, on May 12, 1999, the Mayor and City Commission adopted Resolution No.
99-23164, authorizing the issuance of Request for Proposals No. 42-98/99 for development of the
nnd Street Site (the RFP), and the Administration was further authorized to procure related
professional services in connection with the RFP; and, as such, the Administration contracted,
through an informal bidding process, with Integra Realty Services (Michael Cannon) to procure an
appraisal ofthe site, and Abramson & Associates for financial and advisory services in connection
with the RFP, at fees not to exceed $10,000; and
WHEREAS, on February 23, 2000, the Mayor and City Commission adopted Resolution
No. 2000-23816, authorizing the Administration to enter into negotiations with the Pointe at North
Beach, as the successful proposer, pursuant to the RFP, subject to certain conditions, including a
project feasibility and compatibility assessment and finalization of a value in use appraisal; and
WHEREAS, as a result ofthe City Commission's direction to proceed with negotiations,
it is deemed that the City should continue to retain the services of the existing consultants, due to
their prior involvement, historical knowledge and real estate expertise; and, as such, a waiver, by
5/7ths vote, of the competitive bidding process will be necessary since the consulting fees, in
aggregate, will now exceed $10,000; and
WHEREAS, (i) Integra Realty Resources will provide advisory services and a valuation
analysis report, including a project feasibility and compatibility assessment, at a fee not to exceed
$20,000, and (ii) Abramson & Associates will provide advisory services and a financial analysis to
support the negotiated lease structure and related documents, at an aggregate fee not to exceed
$20,000; and
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, .
WHEREAS, expenses to date (pre-award costs not exceeding $10,000) are included in the
aggregate not-to-exceed sums referenced above and funding for these costs were appropriated on
May 12, 1999 from Bond Fund No. 351 and will be reimbursed to the City by the proposer, as
provided for in the RFP, upon finalization of the Lease Agreement; and
WHEREAS, the consultants will address the proposed project's impact on the surrounding
commercial neighborhoods and its role in North Beach's future development.
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 authorizes the City Manager to execute Letters of Agreement with (i) Integra Realty
Resources for an aggregate fee not to exceed $20,000, and (ii) Abramson & Associates, 1nc. for an
aggregate fee not to exceed $20,000, for consulting, appraisal and advisory services in connection
with the proposed public-private development at the nnd Street site, and waiving by 5/7th vote the
public bidding process in connection with the procurement ofthese services, finding such waiver
to be in the best interest ofthe City.
PASSED and ADOPTED this 10th day of May, 2000.
1~
MAYOR
ATTEST:
llo 0-1A} f tUck
CITY CLERK
LAL/CMC/rar
T,\AGENDA\2.OOlYIMA YIOOOIREGULARI nNDST,RES
APPROVED I>S TO
FORM & lANGUAGE
& FOR EXECUTION
Ait~ ~
,
INTEGRA '~"' ,="'~
APPRAISAL & REAL ESlATE ECONOMICS ASSOC (AREEA)' MIAMI
March 29, 2000
PH: (305) 673-1010
FX: (305) 674-7782
Ms. Christina M. Cuervo, Assistant City Manager
Ms. Patricia Walker, CPA, Finance Director
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
VIA FAX & COURIER
Re: Agreement for Real Estate Advisory and Valuation
Services for the City-owned four (41:) acre site
known as the "nnd Street Site" proposed by Equity One,
Inc./Zyscovich Plan "The Point @ North Beach"
Dear Ms. Cuervo and Ms. Walker:
In accordance with your request, Integra Appraisal and Real Estate Economics Associates (1RR/ AREEA)
is pleased to submit this proposal to provide the City of Miami Beach with Real Estate Advisory Services
culminating in the preparation of a Market Analysis/Feasibility and Valuation Report of the Leased Fee
Estate ("Value in Use") Appraisal of the captioned property.
Under the Real Estate Advisory Services portion of the proposal, Michael Y. Cannon, CRE, MAl, will
participate with and be of assistance to the City and Abramson & Associates in providing consulting for the
negotiation and consummation as to the business terms of a long term lease between the developer and the
City.
Michael Y. Cannon and members of 1RR/ AREEA's professional staff will be available to meet with the
developer, the City's administration staff, attend special workshops and/or City Commission meetings as
called upon, and provide professional advice relating to the proposed development and land lease.
IRR/AREEA's fee proposal is two (2) phased.
Advisory Services Portion: Consulting and advisory time is budgeted to range from 22 - 41 hours or
$4,290 - $7,995 (based upon standard hourly rate). Michael Y. Cannon will assist in the negotiations,
transaction structuring of the long term lease, as well as provide general and specific consultation relating
to the proposed development concept in accordance with the City's consensus and design guidelines.
1RR/AREEA's hourly fees will be based upon the attached Standard Fee Schedule, and Michael Y. Cannon
will utilize associates' services in order to maximize productivity while minimizing expenses.
LOCAL EXPERTlSE...NATIONALLY
9400 5. Dadeland Blvd. . Penthouse One . Miami, FL 33156-2817
Phone: 305-670-0001 . Commercial Fax: 305-670-2276 . Residential Fax: 305-670-2275 . Email: miami@irr.com
City of Miami Beach
March 29, 2000
Page Two
Valuation Analysis Rellort Portion: Upon completion of the final development plan and its conceptual approval by
the City, the developer fina1izing Tenant Leases, Parking Garage Revenues and expenses as agreed upon by the City,
lRR/AREEA (with the assistance of Abramson & Associates) will prepare a Financial Feasibility Analysis concluding
with a Valuation of the Leased Fee Estate for an upset fee not to exceed $8,500.
The foregoing proposal is based upon the City acknowledging a prior fee agreement (dated 8/12/99) for
the preliminary Market Survey and Valuation Analysis in the amount of$5,500; plus Michael Y. Cannon's
subsequent Advisory and Analysis time totaling 15.5 hours (pro bono), and ten (10) hours billable $1,950
for only two (2) workshop sessions and two (2) City Commission meetings (see attached invoice). Total
fee for past work performed from Aug., 1999 through Feb., 2000 is $7,450.
If the foregoing proposal is acceptable, please acknowledge your agreement with the terms of this
engagement letter by signing, dating and returning one copy to us.
Invoices delinquent thirty (30) days or more will bear interest at the rate of one and one-halfpercent (1.5%) per
month. In the unlikely event that an action must be commenced to collect delinquent fees and/or costs, the
prevailing party shall be entitled to an award of attorney's fees and costs.
We look forward to being of professional service on this most interesting engagement, and trust our
professional services best serve the City's interest. Please feel free to call if you have an comments
regarding this proposal or would like to change the scope of services (within reason) we can perform. We
look forward to being of professional assistance.
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Respectfully submitted,
111t,~
lNfEGRA APPRAlS1L AL EST ATE
ECONOMICS
~-
-~
Michael. on,
Managing Director
State Certified General Appraiser
Certificate No. RZ-0000684
end: IRR/ AREEA Profile & Qualifications
cc: Jose E. Valera, ASA, Senior Vice President, Ext. 250; 1RR/AREEA
Chris Librizzi, Associate, Ext. 238; 1RR/AREEA
'-"dby di;:,~ OcSl~
City of Miami Bea
Date: t5;{z.../".o
/ r
IRR/ AREEA will waive its customary retainer request in favor of periodically invoicing for services to be
performed.
K:\DATA\COMlvIDEPT\6168\corr2000,wpd
ABRAMSON & ASSOCIATES, Inc.
Real Estate Advisory Services
March 16, 2000
Ms. Christina Cuervo, Assistant City Manager
Ms. Patricia Walker, CPA, Finance Director
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Re: Agreement for Real Estate Advisory Services - Negotiation Assistance for 12M
Street Site
Dear Christina and Trish:
Abramson & Associates, Inc. (A&A) is pleased to submit this proposal to provide real
estate advisory services to the City of Miami Beach relative to the above project.
SCOPE OF SERVICES
Generally, A&A would assist you in negotiating and structuring the lease and any related
transactions for disposition and development of the project. This could entail:
participating in negotiation sessions, evaluating and fonnulating transaction structures and
proposals; preparing a cash flow model and perfonning financial or other analyses to
support negotiations and clarifY the financial or other implications of proposed
transactions to the City; and, to the extent considered appropriate, reviewing and editing
lease and development agreements to ensure that financial elements of the deal are
protected in the documentation.
A&A would draw upon information provided by IRRIAREEA's feasibility analysis and
appraisal (provided under separate contract to the City by that firm) concerning reasonable
market rents, operating expenses, parking revenues and development costs to support the
negotiation. A&A's cash flow analysis would be integrated by IRRI AREEA in those
analyses. A&A would provide limited input, as appropriate, to the feasibility study and
review the IRRI AREEA reports and coordinate as appropriate to ensure proper
integration.
ADMINISTRATIVE MA TIERS
Under the tenns of this agreement, fees for the above services will be charged on a time and
expense basis. Professional services provided by Mr. Abramson will be charged at the
standard hourly billing rate of$190. Should the involvement of associates in certain tasks
provide a more cost effective service or needed specialized expertise, their time would be
billed at hourly billing rates anticipated at between $50 and $175, with the specific rate
dependent upon the associate's level of experience and the nature of the tasks to be
perfonned.
113 Chestnut Street /Newton, MA 02465/ tel: (617) 965-4545/ fox: (6t7) 965-5431
Ms. Christina Cuervo
Ms. Patricia Walker
March 16, 2000
page 2
Out-of-pocket expenses for such items as travel, lodging and express mail will be charged at
cost. Telephone and facsimile transmittal costs and time expended in travel will not be
charged.
The maximum amount authorized under this contract will be twenty thousand dollars
($20,000). Other terms and conditions are attached.
Fees for the project will reflect the actual time expended which shall depend on such
factors as: the nature and complexity of the issues encountered, the nature of the negotiation
process and the extent you wish A&A to be involved in the various elements of the project.
Accordingly, the total fees to be charged for the project may be more or less than the
maximum amount. A&A will keep you informed as to the level of fees incurred and, if at
any point they are anticipated to exceed the maximum, A&A will notifY you and proceed
only upon your further authorization.
If this letter corresponds to your understanding of our conversation and intent, please sign
below and on the Standard Terms and Conditions form, and return a copy as our
authorization to proceed.
Thank you for the opportunity to assist you.
Sincerely,
Zf~~s,m'
Barry M. Abramson
President
~
Accepted By:
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Date
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUnON
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Dale
ABRAMSON & ASSOCIATES, Inc.
STANDARD CONTRACT TERMS AND CONDITIONS
This section sets forth terms and conditions applicable to the attached proposal. Acceptance of the
proposal also constitutes acceptance of these terms and conditions. In the event of any conflict in
interpretation between the administrative arrangements specified in the attached proposal letter and these
standard terms and conditions, the former shall prevail.
Pavrnent Terms. You will be billed periodically for our services as they are incurred, but not more
frequently than twice per month. The full amount of the fee and direct expenses. less any prior payment
and retainer, will be due upon completion of the work program and at the time of submission of the final
report. Payment for services will be due upon receipt of invoice.
Dillinl! Rate Adiustment. Abramson & Associates, Inc.'s billing rates are increased annually as of January
I ". An automatic rate increase eqnivalent to the increase in the national consumer price index over the
previous year, rounded to the nearest dollar, shall be applied automatically. and is hereby approved by the
client. Any additional increase would be applied OulY upon presentation to and approval by the client.
Files and Data. Abramson & Associates, Inc. will retain working papers. related data and analysis, and
copies of the reports.
Use of ReDorts bv Clients. Abramson & Associates Inc.' s interim drafts, memorandums, and final reports
will Dot be presented to third parties by the client except in the form delivered to the client. Abramson &
Associates Inc. will not be responsible for any abridgment, abstracting, or excerpting of reports made without
obtaining the permission of Abramson & Associates, Inc.
Noncontinl!ent Fee. It is understood that compensation offees on a time and expense basis is in no way
dependent upon the specific conclusions reached or the nature of the advice given or the outcome of the project.
Sales Tax. If any sales tax for the services provided under this contract becomes due, the client agrees to
pay the tax at such time the tax becomes due as an additional charge.
Additional Charl!es. The client agrees to pay Abramson & Associates, Inc. for staff time, at Abramson &
Associates Inc. 's standard hourly billing rates, for any additional work requested by the client beyond that
set forth in the Scope of Services.
Earlv Termination. The client has the right, at any time during the assignment, to terminate the
assignment. In the event of early termination, the client agrees to pay for staff time expended up to the
receipt of the notice of early termination, at Abramson & Associates' standard hourly billing rates, as well
as for any other additional related expenses such as penalties for canceled flights.
Other Matters. The client agrees to pay Abramson & Associates, Inc. for staff time, at Abramson &
Associates Inc. 's standard hourly billing rates, plus expenses at cost that might be reqnired for expert
testimony or any other court appearances, together with preparation time and legal costs that might arise
because of Abramson & Associates' involvement in this, whether subpoenaed by the client or any other party.
ProDosal AcceDtance. This proposal shall remain in effect for thirty (30) days from date of issue, after
which Abramson & Associates, Inc. may, at its discretion, determine it to be void. Once accepted, this
proposal will remain in force until the scope outlined is complete or until it is halted or delayed at the
client's request.
Client:
Project Name:
Proposal Date:
City of Miami Beach
Real Estate Advisory Services - Negotiation Assistance for nnd St Site
March 16, 2000
Accepted By:
~ Tf:;6?5
Ol/o,lo,
Date
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
hlIp:\\ol.mloml-beech.n...
COMMISSION MEMORANDUM NO. 33-:1-00
TO:
FROM:
Mayor Nelsen O. Ka.dln and
Memben ofthe City Commis.lon
Lawrence A. Levy %
City Manager
DATE: May 10,2000
SUBJECT:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY
MANAGER TO EXECUTE A LETTER AGREEMENT WITH (i) INTEGRA
REALTY RESOURCES FOR AN AGGREGATE FEE NOT TO EXCEED
$20,000 AND (ii) ABRAMSON & ASSOCIATES, INC. FOR AN
AGGREGATE FEE NOT TO EXCEED $20,000, FOR CONSULTING
APPRAISAL AND ADVISORY SERVICES IN CONNECTION WITH THE
PROPOSED PUBLIC-PRIVATE DEVELOPMENT AT THE nND STREET
SITE, AND WAIVING BY 517THS VOTE THE PUBLIC BIDDING PROCESS
IN CONNECTION WITH THE PROCUREMENT OF THESE SERVICES,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On May 12, 1999, the City Commission adopted Resolution No. 99-23164 authorizing the issuance
of Request for Proposals (RFP) No. 42-98/99 for development of the nOO Street Site, and the
Administration was further authorized to procure related professional services in connection with the
RFP. As such, the Administration contracted, through an informal bidding process, with Integra
Realty Services (Michael Cannon) to procure an appraisal of the site and Abramson & Associates for
financial and advisory services in connection with the RFP, at fees not to exceed $10,000.
On February 23,2000, the City Commission adopted Resolution No. 2000-23816 authorizing the
Administration to enter into negotiations with the Pointe at North Beach, pursuant to the 7200 Street
Site RFP, subject to certain conditions, including a project feasibility and compatibility assessment
and finalization of a value in use appraisal.
As a result of the Commission's direction to proceed with negotiations, it is deemed that the City
should continue to retain the services of the existing consultants due to their prior involvement,
historical knowledge and real estate expertise. As such, a waiver of the competitive bidding process
will be necessary since the consulting fees, in aggregate, will now exceed $10,000.
AGENDAITEM Cr 0
DATE 5-10-00
May 10,2000
Commission Memorandum
72"" Street RFP
Page 2
Specifically, (i) 1ntegra Realty Resources will provide advisory services and a valuation analysis
report, including a project feasibility and compatibility assessment at a fee not to exceed $20,000,
and (ii) Abramson & Associates will provide advisory services and a financial analysis to support
the negotiated lease structure and related documents at an aggregate fee not to exceed $20,000.
Expenses to date (pre-award costs not exceeding $10,000) are included in the aggregate not-to-
exceed sums referenced above. Funding for these costs were appropriated on May 12, 1999 from
Bond Fund 351 and will be reimbursed to the City by the selected proposer as provided for in the
RFP, upon finalization ofthe Lease Agreement.
As stated in the February 23<<1 Commission Memorandum, the consultants' will address the proposed
project's impact on the surrounding commercial neighborhoods and its role in North Beach's future
development. The consultants' review will be fast-tracked so as to not adversely impact the project's
implementation. The appraisal of the Site and project will include a compatibility assessment and
feasibility study of the proposed project in context with the North Beach market, specifically
addressing the following concerns:
. Assuring that the project's configuration enhances the adjacent commercial areas and
meets the expectations of the surrounding market.
. Optimizing the project components to assure that the North Beach market can sustain
the proposed development.
. Analyzing the option to include a Community Theater and recommending the
maximum benefit to the community.
In order to expedite and conduct timely negotiations, the City Administration recommends the City
Commission adopt the attached resolution and waive by 517'hs vote the public bidding process,
finding said waiver to be in the best interest of the City.
CIf\V~
LAL:CMC:rar
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