2011-1004 Special City Commission Meeting

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Summary Minutes: Special City Commission Meeting October 4, 2011 Sunny Isles Beach, Florida LLC., is required, prior to site plan approval, to deposit with the City $200,000, and within 30 days after site plan approval, they are required to deposit with the City $800,000 which totals $1 Million. Subsequently they are required to deposit $500,000 with the City during the time that they pull a building permit, and an additional $1.5 Million when they receive a CO with respect to the project. If this City Commission approves this ground lease tonight, they are required to submit a site plan for approval within 120 days. Subsequent to site plan approval, after the 30-day period has run they are required to obtain a building permit within six-months from the time that the site plan was approved. After the building permit is issued, consistent with the City Code, they are required to complete construction within 24 months of the building permit. Circumstances may arise and we may provide extensions if needed based on good grounds, but overall, after final site plan approval Ocean Corporate Center, LLC, will have $1 Million at risk ifthey fail to proceed with the project. We met at 5:00 p.m. today, and there will be some legal language added, especially the concept that the developer wants a cond%ffice project, and we need to include certain language to facilitate that. Public Speakers: Warren Stamm; Gil Dezer; Jay Steinman; Abraham Weintraub; Gerry Goodman Mayor Edelcup asked it to be summarized again, the exact chronologically how the money gets paid to the City and when that is in a calendar format. City Manager Cohen said it is on pages 2 and 3, they have given us $100,000, pending approval tonight they will provide another $100,000, and at site plan approval they will provide $800,000. Mayor Edelcup asked if that is three to four months from tonight, and City Manager Cohen said it is actually site plan approval and so they are filing within 90 to 120 days, and then approval would be based upon the Commission's timeframe. Upon receipt of a building permit, an additional $500,000 and then upon receipt of a CO or a TCO would be the additional $1.5 Million. City Attorney Ottinot said the $4.5 Million would be over a 25-year term, with a 5.5% interest rate. Commissioner Scholl said he was looking at the red line in the lease and on pages 16 and 17 where you added some environmental language and he is trying to understand why we even have it. It was a car rental place and so you have the possibility of some environmental issues, why wouldn't the tenant just do their due diligence and make a decision or not as far as their ability to proceed, or if we are going to take responsibility for it, what happens ifthere is a 2% cap, and so if there is an issue are we saying that we are liable for 2%. City Attorney Ottinot said that the tenant had raised some concerns about possible environmental issues because there is an existing above ground gas tank on this site. From his communication with the City Manager and also the tenants, it was our understanding that the City would take responsibility to remediate any environmental problems with the site. Based on that conversation, he came up with language that addressed the concern but also to limit our exposure with respect to environmental issues if there is an issue with respect to the above ground tank, as a prudent approach you put some monetary cap. Also that issue is a time limit when the tenant accepts possession and takes over the site, if an environmental issue arises that is the tenant's responsibility but prior to that, it is his understanding that the City will accept some responsibility to clean up the site. Commissioner Scholl said in a real world, someone does an environmental study and there is an issue, the tenant doesn't want to deal with the issue, we have to clean it up anyway so how 2