2011-1020 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting October 20, 20 I I City of Sunny Isles Beach, Florida the initial 24-month period to complete the improvements. If the delay happens within the 24 months and it is not the fault ofthe purchaser, then the City will be in a position to extend the 24-month period accordingly. They will also work with the City to secure a pedestrian walkway which would be located outside of City Hall and connect across the street to 18001 Collins A venue, and they are prepared to work in conjunction with the City and FDOT to secure that pedestrian walkway. If there are additional holdups as a result ofFDOT which impacts their ability to secure the Building Permit, they would work with the City for any applicable extensions that may be necessary. Gil Dezer ofDezer Development, presented renderings ofthe project noting that a bank and possibly medical offices would go within the Tower. They are proposing 140,000 square feet, and they worked in the parking within the Zoning Code and will not have to ask for any variances. The last time this was brought before the Commission was three (3) years ago, they signed with the City on August 4, 2008, and on September 15, 2008 the Lehman Brothers collapsed, and therefore the financing they expected for the project was unavailable to them. They worked with two architects on the renderings, Kobi Karp and a new architect that he just met. Although they are listing timeframes within their contract, they are well in advance of those timeframes and they are prepared to move forward as fast as possible. Clifford Schulman, Esq. representing The Weintraub Companies reported that the Weintraub Companies/Ocean Corporation Center agreed to a number of LOIs which on October 4, 2011 the Commission rejected, they reserve all their legal rights and remedies. They worked with the City in good faith to try to get to a deal. His clients have developed in the last 15 years over two Million square feet of both commercial and residential properties in Florida and throughout the United States. The Commission was concerned at the last meeting about the uncertainty of a time deal, and so they rej ected it but you also said to go back and rethink your proposal and so they did that and yesterday they delivered a revised LOI to the City which essentially mirror images Mr. Dezer's suggestion on a purchasing sale arrangement rather than a long-term payout. They now have a $7 Million purchase price, they have agreed to pay that within 30 days of Site Plan approval. They have agreed to give the City $1 Million of upfront deposit within two days of signing the agreement. Mr. Schulman noted how their LOI differs from Mr. Dezer's LOI: Mr. Dezer's offer is based on $1 Million given to the City within two days but it is totally refundable ifhe doesn't get Site Plan approval. We will give the City $1 Million, and in the event they don't get Site Plan approval, in fact, at the point of time you sign the Agreement of Purchase and Sale, $200,000 of that amount is non-refundable. There are two things that go into a deal: time and money. The money is the same although they will give the City $200,000 the minute they sign, let's talk about time. You want this project to get going, you want to kick-start it, the Dezer proposal indicates that they will initiate construction within 24 months from Site Plan approval, we say 12 months. In the event the Dezer's do not start construction within 24 months, they will pay you $72,000 a year. We will pay the City $1 Million a year if we don't start construction in 12 months, that is an incentive, we already have 25 agreements for tenants for our building, and so we know we are going to build it. In addition to these add- ons in the LOI, what is also significant is what we took out of the Dezer LOI, the omitted provisions. For example, we agreed to go for our Building Permit within six months, the Dezer proposal says they will do it in six months but they may ask for a three-month 14