2015-0416 Regular City Commission Meeting

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Summary Minutes:Regular City Commission Meeting April 16,2015 City of Sunny Isles Beach,Florida Mayor Scholl said that the primary reason we are getting this property, is our anticipation of building a building here which we are going to plan out and have a workshop on but ultimately the main purpose for that will be for the school expansion. City Attorney Ottinot said the 15800 Collins Avenue property is to expand the Intracoastal Park. Mayor Scholl said yes, the property in front of the Arlen House at 158th Street is to expand the Intracoastal Park system. Once we get that piece, the only thing that we really have left is by Coastal Towers, that is the only piece that is really not filled in. That is a fairly large piece of land, and again, that one is a straight transaction, that is what the TDRs Ordinance was created to do. A developer donates a piece of land and we give him back the TDRs that the property would have yielded. That property yielded roughly 77,000 plus in TDRs and we are giving the Dezer's 80,000 TDRs for that property. The only caveat is that we are not going to get it for a few years. They have a Leaseback Agreement but you have to strike while the iron is hot, and they needed the TDRs for the Armani building. That deal has been in the works for a long term. Mayor Edelcup had started working with them but there was never an impetus for them to actually do that deal. Public Speakers: Gene Newman Commissioner Levin said she was not clear when we were supposed to close on the property by the Arlen House. Mayor Scholl said they have the right for three(3)years to lease it back, we are going to get it right away but then we are going to enter into a lease agreement. Part of the deal was that they still needed it for the Sales Center. Commissioner Levin said she didn't see that in the contract, but it was noted that it is the add-on item. City Attorney Ottinot said the Sales Center is a dedication,we will become the record title holder and there is a leaseback with the developer to lease the property for three(3)years for the Sales Center. Commissioner Aelion said a concern was raised about this public private partnership about the layout, the cost that the City is going to pay. It may be a little on the high end however under a comparative site this probably has a sale and purchase, comparatively the deal is good. What the Mayor achieved here is within the cost that anyone would do. Gene Newman gave history on the Alamo site next door to City Hall. He thinks the TDRs are under-valued. Mayor Scholl said making a deal like this is more art than science. The special purpose is that we need a space for school expansion, and that school expansion has had a lot of proposed sites and were involved in an eminent domain process which would take years. This particular transaction serves a lot of masters in that we end up with a school expansion site, we end up with an area for some civic public purpose and we still end up with some commercial space. With that Agreement it will help defray the cost of the new building, the Schoolboard will contribute to that building, the commercial tenants will contribute to the cost of that building, and the City will contribute to the cost of the building. On the TDRs, we have a precedent that has happened a number of times where we allow folks to take east-side TDRs, pay a fee, and get them to the west side. The last transaction we had that was recorded, the fee was$17, let's say we were wrong and say$35. we are still at £105 to £11 Million. Even if he agreed with him and we say that TDRs are worth $125 a foot, even at $13 Million and change, it beats an eminent domain site because we have a lot of history of paying two or more times than what properties are appraised at when we have to go through eminent domain. In this case do we feel that TDRs are worth 5125 a foot? You could but we still believe that even at that characterization, and he doesn't believe in that 33