2008 0221 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting February 21,2008 City of Sunny Isles Beach, Florida Park, said he is appearing today to ask the Commission for their consideration in recommending a more flexible payment plan for this extension plan. He said we are experiencing the worst credit and financing crisis in the last 25 years, and lending institutions simply are not able to finance projects today, and as a result the developers need an extension in order to secure financing and obtain sales. He said in his particular project, they are paying approximately $4 Million Dollars per year in interest and taxes, they purchased the land two years ago, and will need another two years in order to start construction, therefore, they would have paid $8 Million Dollars before they even break ground not considering architectural fees, etc. He said that they are prepared to pay for the extension but are requesting a payment plan, a payment of the two-year extension in two installments, and if the City could make it 10% instead of the 15% up to $500,000, a little flexibility will greatly help them. Estrellita Siblia, on behalf of Urbis and Key International with their project at 400 Sunny Isles Boulevard, said that they were part of the development community that came out to the workshop. She said that Mr. Ardid, who is the developer behind the projects, has engaged Mr. Goodkin to prepare a Market Study of the market condition here in Sunny Isles Beach taking into account the approved projects, the projects in the pipe line, and really what that absorption rate would be over the next couple of years. She said this would give us a better picture of how this whole thing would play out, and how the time limitations that the City is considering tonight, how reasonable they would be in the current market situation in going forward. She said that they are delighted that the Commission is considering this and that management and staff are working on a solution that would be friendly to the development community but they ask that the City also consider that report, which Mr. Goodkin was unable to produce for this meeting but that the Commission would have it in time for second reading of this ordinance. Mayor Edelcup said from the time we had the workshop until this evening, we were fully aware that the housing recession in South Florida is not a momentary pause but something that will probably last for a number of years. He said that is why they are being responsive to the workshop comments, one to two years would not be completely justified in solving what is hopefully a short-term problem, and so it is important that we did increase the time going out as far as four years. He said as a reminder, that four years is really like six years because there is still that two years from the time that you take your Building Permit to the length of time that that permit is valid, so that in effect we are moving this out to six years. He said the voluntary program is set up basically so that if someone were to avail themselves of the four- year extension and the housing market turned around in two years, he doubts ifthere would be any developer here waiting for the two extra years. He said he thinks the developers are going to start their projects when the economic climate produces a positive impact for them, whether that be two years, three years, or four years, and so he thinks the extension of time to four years is something that is very reasonable for them to do. Mayor Edelcup said as to the dollar amount, that is always an arguing point no matter where you start, whatever number we throw out it is going to be countered by somebody else asking for another one. He said in effect we did lower it by extending the period of time, and again, instead of one year you can now get two years with the same 15% and any developer can first buy into the two years, and then come back to this Commission at a future date, assuming that 6