2008 0221 Regular City Commission Meeting

Home Browse Search

Summary Minutes: Regular City Commission Meeting February 2 I, 2008 City of Sunny Isles Beach, Florida the unpaid balance of7~ % annually and that is an interest only payment, nothing comes off the principal amount for that. He said additionally there would be a third year extension if applicable, and that applicability would be up to the developer after two (2) years, the developer could then pay 7~% of the balance owed the City or $250,000 whichever is greater. He said if the economy does not become conducive to the housing market there would be a fourth year extension with the same conditions as the 3rd year. City Manager Szerlag said there are also other requirements: the developer will forfeit vested rights/zoning estoppels; the site in question will be maintained to look more like a park than a construction zone and will include installation of decorative fencing; within 60 days notice by the City the developer will be required to underground all the utilities or pay the City its pro-rata share to do so; and because the program is voluntary, it will be administered administratively, and that is not to say that at some future point in time the Commission says that times are good and to stop the program. He also presented two models which assumed that the developer owed $3 Million Dollars in one and $6 Million Dollars in the other, with a matrix that indicated what the principle of interest amounts would be under certain time frame extensions. City Attorney Ottinot said that this extension would cover Building Permit fees, TDRs fees, and Bonus fees, however, this extension will not cover any mitigation payment or voluntary contribution that a developer has agreed to provide to the City as a condition of the zoning approval. Clifford Schulman, Esq., said that they are very grateful that the City Manager and the City Commission, as a result of the workshop, took a relook at the formula that was originally proposed and came up with a different recommendation, so he is going to ask that it be approved but it is still too much money. He said the market is still down and money is scarce, not only money but the ability to get a construction loan as well. He went through Model Two, as an example, what the developer paid you as an upfront 3-day 10% plus what the Manager is suggesting plus interest for two years, you are asking the developer to come up with $1.8 Million Dollars, additional, non-refundable for a two-year extension, and for four years he would have to pay the City $3.5 Million Dollars including what he already gave the City, the $600,000 plus interest. He said that his clients are not coming up with that kind of money because it comes out of the developer's own pocket. He said this program is voluntary, it is better than it was at the workshop, if you are going to approve anything, please approve it, but please consider that $500,000 today is $5 Million Dollars of two years ago, and he is asking that the City consider the economics. He said the developers have a carrying cost, for example, a developer has a 1 OO-foot lot on the ocean without this program, just in real estate taxes alone plus interest payments if you paid an outrageous amount of money for this property which most of these people did a few years ago, is running $5 - 6 Million Dollars just to carry the property and not have it foreclosed. He stated on top of that you are talking about a four-year extension, an additional $3.5 Million or an additional $l. 8 Million, and he is concerned that developers will say that they will give it up and take their chances two or three years from now and pay their attorneys the amount of money that they need to come back to the City and get this approved again. Hector Dasso, the owner and developer of the property located at 17475 Collins Avenue, also known as Park Place on the Ocean located immediately to the north of Samson Oceanfront 5