2005 0609 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting June 9, 2005 City of Sunny Isles Beach, Florida Action: City Clerk Hines read the title and City Manager Russo reported that this agreement came about because Fortune had previously leased space under the William Lehman Causeway with their Meridien project, the Tangiers site, and that expired at the end of December 2004. He said during this time period the City had been negotiating for them based on the letter that he initiated to the various developers in the area to lease the space under the Sunny Isles Causeway for use to keep construction equipment and vehicles off of Collins. He said in that area the City has a right to lease out exclusively, in addition they were looking for spaces to continue under the Lehman Causeway, which we do in a non- exclusive basis as we had done before with Fortune and Related Companies. City Manager Russo said at that same time they had various discussions over creating a park- like setting at the western nose of the area under the Sunny Isles Causeway. He said that they had numerous negotiations, meetings and discussions with FDOT to get permission to build a park-like setting there inclusive of a parking area, an area ultimately to be used for the water taxi, combined through an offer of Fortune International to build that out over time, to start in a year. He said the City came up with schematic plans with the help of Bill O'Leary and that whole process has resulted in this 3-year agreement which would provide leasing up to 400- spaces under the Lehman Causeway and a minimal number of spaces remaining under the Sunny Isles Causeway, approximately 80 now, and then diminished significantly less once they start building the park-like setting in a year. Mayor Edelcup asked if the park-like setting would be created within a year of when we sign this, and City Manager Russo said they would utilize the lots for one year, and start building it in one year. Mayor Edelcup asked when it would be completed, and City Manager Russo said it would take about six months, which would be a total of I8-months. Mayor Edelcup said it should be included in the agreement. Mayor Edelcup noted that after three years the agreement can be renewed and asked if the rate is determined, and City Manager Russo said they would negotiate the rate. Mayor Edelcup said that the agreement needs to be revised to provide for a negotiated rate on any renewal because the lease agreement is silent and noted that the term is on page 278 of the agenda. City Manager Russo said it is noted in section 7 that if we renew it they would pay the rate that we currently charge for the monthly parking permit, but we would clarify it. Acting City Attorney Wright asked Judith Burke if Fortune would agree to what the Mayor is asking for and she said yes. Acting City Attorney Wright clarified that in Section 8 under Term, what we would say is "The amount of the rate that would be charged under an extended term would be the amount equal to the monthly parking fee currently charged by the City at that time." Public Speakers: Judith Burke Judith Burke, Esq., representing Fortune, said that Fortune would commence development clearly within one year, that is in the agreement, and they would pursue the construction as quickly as they can, and estimate that it will take six months. Mayor Edelcup said that is fine as long as we have it on the record. Commissioner Iglesias pointed out that FDOT has the right to within 30-days terminate the lease if they need it for maintenance of traffic or staging, or if anything would happen, and asked if they were aware of this, and City Manager Russo said yes and that agreement is part and parcel of this and that we got some pretty good ]3