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COMMISSION MEMORANDUM
70: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager FIRST READING
DATE. September 10, 2008
SJ6JEC- A RESOLUTION APPROVING ON FIRST READING, IN ACCORDANCE WITH
CHAPTER 163, FLORIDA STATUTES (THE FLORIDA LOCAL GOVERNMENT
DEVELOPMENT AGREEMENT ACT), A DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH AND BERKOWITZ DEVELOPMENT
GROUP, INC., FOR THE CONSTRUCTION OF PUBLIC RIGHT-OF-WAY
INFRASTRUCTURE IMPROVEMENTS, INCLUDING CURB, GUTTER,
SIDEWALKS AND DRAINAGE, ON LENOXAVENUEAND ON SIXTH STREET.
ADMINISTRATION RECOMMENDATION
Reject the Resolution and place the project out for competitive bid.
ANALYSIS
On May 16, 2005, the Mayor and City Commission approved a Development Agreement with
AR&J Sobe, LLC., for the construction of a vertical retail centerwith an 1,100 space parking
garage to be located on the site bounded by Fifth Street on the south, Sixth Street on the
north, Alton Road on the west and Lenox Avenue on the east. Over the last several years
and most recently on April 25, 2007, the Development Agreement has been amended. Tf•e
project, known as "Fifth and Alton", is currently under construction by Berkowitz
Development Group, Inc. (Developer}, one of the principals of AR&J Sobe, LLC. The City's
total contribution to this project is 514,397,725, of which 59% or $ S8,564,210 has been paid
to the Developer as of August 20, 2008. Included in the negotiations, was an effort to
coordinate the construction of the off-site improvements in connection with this Project.
Off-Site Improvements
The City has approved and is planning io perform drainage improvements, utility upgrades,
road improvements, sidewalk, landscaping and streetscape work in the neighborhood
around the project, including work on Sixth Street and on Lenox Avenue adjacent to the
project site. The work for these streets is contained in the Basis of Design Report for the
Flamingo Neighborhood Right of Way (ROW) Improvements. Since this project is
scheduled to commence after the 5r' and Alton Project is complete, the Developer
expressed an interest to the City to construct these improvements during the 5°i and Alton
construction. The Developer is interested in performing fhe work so that its development is
not adversely impacted by the Flamingo Neighborhood project when it is built.
Thus, the City and Developer have mutually determined that the aforeslated infrastructure
work within the Project Site should be coordinated with construction of the Fifth and Alton
project. As such: the Administration and the Developer have met several times to finalize