2011-1020 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting October 20, 20 II City of Sunny Isles Beach, Florida City Attorney Ottinot said we have two parties who have a strong interest in buying this property and he has spoken to members of the Commission individually and he thinks what he recommended is fair. We didn't use a comparative process because we are not required by law but in order to be fair to both parties is to allow these parties to come in at a different time and present a more detailed presentation to the Commission. Also what he would require from the Commission is that both parties would be required to execute a Purchase Agreement with the business terms of the LOI that they have presented to Commission. Additionally, just to clarify Mr. Schulman's comment about waiver of rights, if the City is providing these parties with an opportunity to present their proposal, that both parties agree to execute a "Waiver of Release" that they will not bring any legal action against the City if the City does not select them as the purchaser. Mayor Edelcup said he tends to agree with the recommendations of the City Attorney, this Commission basically is standing out in front trying to arrive at what is the best alternative for the residents/taxpayers of this City and hopefully we are trying to do this in a very fair and even handed manner. Two weeks ago we had a similar situation, the players have reversed themselves and we have somebody coming in at a late hour with a counter proposal, and so what he would like to recommend to the Commission is that we meet again next week after there has been an opportunity for the City Manager, the City Attorney and staffto meet with each of the individuals and illicit from them their final and best offer to the City so that we can move forward. At the same time, he would like to make sure that all the terms are reduced to writing and that the Commission be furnished with a comparison sheet of the two and best offers that are being presented, not only to include the financial terms, the size of the building, an analysis needed by our Finance Director to calculate the present value of financial terms using an appropriate discount rate, and also any other information that the City Manager, City Attorney, or staff would want to present to the City for its consideration. He would then ask our Commission to act in a very professional manner and not in an emotional manner in determining what is the best solution, what is the best return to the City, both of these are fine offers, both of these firms are well proven, I think we can take both of those items off the table and establish that they are both reputable. It is now a matter of what is the best return to the City. He may propose a meeting for next Thursday to finalize this. City Manager Cohen said he would like to concur with the Mayor's recommendation. In quickly reviewing both of these letters, in his opinion they both share the same deficiencies, the triggers in both of these letters is that they are hinged on Site Plan approval and the way they are written right now, they are open-ended as opposed to the Gateway Agreement with the Milton's. He would like to see that tightened up because every other trigger that is in both of these documents are hinged on that approval, and that approval in and of itself is open-ended, and this extra time will allow him and the City Attorney to review the terms to ensure whatever agreement we come to is in the City's best interest. Vice Mayor Thaler said there was one thing that was mentioned by Mr. Stamm and the Weintraub contract in terms ofTDRs and costs, and he would like to know when it comes back to us what we are dealing with there and those cost factors. Mayor Edelcup said definitely, that should be part of the present value approach to this whole thing. Commissioner Gatto thinks that competition creates creativity, and with the LOI from 16