HomeMy WebLinkAboutReso 2026-3991RESOLUTION NO. 2026 -
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH,
FLORIDA, APPROVING THE TERMS AND CONDITIONS OF A PROMISSORY NOTE
FOR THE PAYMENT OF TRANSFERABLE DEVELOPMENT RIGHTS (TDRs) IN THE
AMOUNT OF THIRTEEN MILLION SIX HUNDRED NINE THOUSAND THREE
HUNDRED SEVENTY DOLLARS AND TWENTY-FIVE CENTS ($13,609,370.25), FOR
THE APPROVED SITE PLAN APPLICATION (PZ2025-08) SUBMITTED BY MB RE
INVESTMENTS, LLC, FOR THE PROJECT ENTITLED -MIAMI BEACH CLUB"
CONSISTING OF A SIXTY-TWO (62) STORY RESIDENTIAL CONDOMINIUM TOWER
WITH 524,212.8 SQUARE FEET OF FLOOR AREA, INCLUDING A 2,390 SQUARE
FOOT PRIVATE RESTAURANT, AND 145 RESIDENTIAL DWELLING UNITS;
PROVIDING THE CITY MANAGER WITH THE AUTHORITY TO DO ALL THINGS
NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR SEVERABILITY;
PROVIDING FOR REPEALER; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, MB RE Investments, LLC (the "Applicant") submitted a site plan application
(PZ2025-08), to the City of Sunny Isles Beach, Florida ("City"), for the project entitled "Miami
Beach Club," consisting of a sixty-two (62) story residential condominium tower with 524,212.8
square feet of floor area, including a 2,390 square foot private restaurant, and 145 residential
dwelling units ("Application"); and
WHEREAS, pursuant to Resolution No. 26-Z-221, the City Commission approved the
Applicant's site plan application (PZ2025-08) and Applicant's request for a payment agreement,
in the form of two Promissory Notes, one for the approved FAR bonuses and one for the City's
TDRs, not paid -in kind, over a period of time and on terms approved by the City Commission; and
WHEREAS, the Applicant's proposed Promissory Note for TDRs is for an indebtedness of
$13,609,370.25, together with annual interest accruing from the issuance of the below grade or
master building permit, whichever occurs first, at a rate of Prime plus one-half percent (0.5) per
annum, with the Applicant making annual interest payments to the City until the Promissory Note
is paid in full; and
WHEREAS, the Applicant is seeking the City Commission's approval of the terms and
conditions for Applicant's Promissory Note for TDRs; and
WHEREAS, on January 15, 2026, and continuing thereafter on February 19, 2026, the City
Commission conducted a public hearing on the site plan application, including Applicant's request
for a payment agreement, in the form of two Promissory Notes; and
WHEREAS, the public hearing was duly advertised and held as required by law, all
interested parties concerned with the matter were heard, and due and proper consideration was
given to the matter; and
WHEREAS, the City Commission has reviewed the terms and conditions of the Applicant's
Promissory Note for the payment of City's TDRs and hereby finds that the payment terms and
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conditions of the Promissory Note is acceptable to the City Commission and in compliance with
the City's Land Development Regulations, and further finds that the terms and conditions of
Applicant's Promissory Note should be approved.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY
ISLES BEACH, AS FOLLOWS:
Section 1. Incorporation of Recitals. The foregoing recital paragraphs are hereby ratified and
confirmed as being true and the same are hereby made part of this Resolution.
Section 2. Approval. The Applicant's request for the approval of the terms and conditions of
the Applicant's Promissory Note for the payment of TDRs for an indebtedness of $13,609,370.25,
together with annual interest from the execution date of the Promissory Note, at a rate of Prime
plus one-half percent (0.5) per annum, with the Applicant making annual interest payments to
the City until the Promissory Note is paid in full, for the approved site plan application (PZ2025-
08) for the project entitled "Miami Beach Club," is hereby approved.
Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all
things necessary to effectuate this Resolution.
Section 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this
Resolution is, for any reason, held invalid or unconstitutional by any Court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent provisions and
such holding shall not affect the validity of the remaining potions of this Resolution.
Section 5. Repealer. All Resolutions or parts of Resolutions in conflict herewith shall be and
are hereby repealed.
Section 6. Effective Date. This Resolution shall become effective upon adoption.
PASSED AND ADOPTED this 19th day
r, CMC, City Clerk
Larisa Svechin, Mayor
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
Ain E. Boi eau for Nabors, Giblin
& Nickerson, P.A., City Attorney
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Moved by:C �(� k1SSl ONVL - U+14 Seconded by: 6-0— I?I�- i► lS �.�C'
Vote:
Mayor Svechin (Yes) (No)
Vice Mayor Viscarra (Yes) PJo)
Commissioner Joseph (Yes) (No)
Commissioner Lama / (Yes) (No)
Commissioner Stuyvesant -(Yes) (No)
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PROMISSORY NOTE FOR TRANSFER OF
DEVELOPMENT RIGHTS (TDR) PAYMENT
_, 202
FOR VALUE RECEIVED, MB RE Investments, LLC, a Florida limited liability
corporation, with its principal address at 2850 Tigertrail Avenue, Suite 800, Miami, Florida 33133
("Maker" or "MBC Developer"), unconditionally promises to pay to the order of the City of Sunny
Isles Beach ("Payee" or "City"), a Florida municipal corporation located at 18070 Collins Avenue,
Sunny Isles Beach, Florida 33160, the principal amount of Thirteen Million Six Hundred Nine
Thousand Three Hundred Seventy Dollars and Twenty Five Cents ($13,609,370.25)
("Principal Amount"), together with interest on the unpaid principal balance from the date of this
Promissory Note ("Note"), at the rate of Prime plus one-half percent (0.5) per annum (the
"Indebtedness"). As used herein "Prime" refers to the rate published in the Wall Street Journal as
the prime rate. Interest on this Note will change with each change in the prime rate so published.
Interest shall be computed for the actual number of days which have elapsed, on the basis of a 365-
day year. The Principal Amount and accrued interest shall be due and payable no later than ninety
(90) days following the issuance of a Temporary Certificate of Occupancy ("TCO") for any unit
or area within the proposed project located at 19051 Collins Avenue ("Project"), approved by City
Resolution No. 2026- , with Transfer of Development Rights ("Maturity Date").
Maker shall pay Payee annual interest payments on the Principal Amount. Interest under this Note
shall begin to accrue upon the issuance of the below grade or master building permit, whichever
occurs first. After the below grade or master building permit is issued, Maker shall pay annual
interest payments to Payee for the balance of the Principal Amount to the Payee until this Note is
paid in full.
All payments made on this Note shall be applied by Payee to the reduction of the
Indebtedness. The Indebtedness, which is inclusive of accrued and unpaid interest thereon, shall
be due and payable on the Maturity Date. If any payment of interest or principal payment is not
received by the Payee within five (5) days after its due date, Maker shall pay Payee a late charge
equal to five percent (5.00%) of the overdue payment. If interest or principal payment is not
received by the Payee within thirty (30) days from Payee's written notice to Maker that any such
payment of interest or principal payment is due and payable, the entire balance of principal
payment and accrued interest shall be due to Payee.
If this Note is not paid promptly on the Maturity Date in accordance with its terms and is
placed in the hands of any attorney for collection, Maker agrees to pay all reasonable attorney's
fees and the costs and expenses of collection of this Note incurred by Payee.
Maker covenants and agrees that time is of the essence for payments due under this Note.
All agreements between Maker and Payee, whether now existing or subsequently arising
and whether written or oral, are expressly limited so that, in no contingency whatsoever, whether
by reason of acceleration of the Maturity Date of this Note or otherwise, shall the amount paid or
agreed to be paid to Payee pursuant to the terms of this Note or otherwise, or for the payment or
performance of any covenant or obligation contained in this Note or in any other document
evidencing, securing, or pertaining to the indebtedness evidenced by this Note exceed the
maximum amount permissible under applicable law. If, from any circumstance whatsoever,
fulfillment of any provision of this Note or other document, at the time performance of such
provision shall be due, shall involve exceeding the maximum amount permissible by law, then,
ipso facto, the obligation to be fulfilled shall be reduced to the limit validly allowed by law. If
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Payee shall ever receive, as interest or otherwise, an amount which would exceed the highest lawful
rate of interest, such amount which would be excessive interest shall be applied to the reduction
of the principal amount owing under this Note or on account of any other principal indebtedness
of Maker to Payee and not to the payment of interest or, if such excessive interest exceeds the
unpaid balance of principal of this Note and such other indebtedness, such excess shall be refunded
to Maker. The terms and provisions of this paragraph shall control and supersede every other
provision of all agreements between Maker and Payee.
This Note shall be prepayable, in whole or in part, at any time and from time to time without
premium or penalty at the sole option of the Maker, with the amount of prepayment being credited
first in respect of accrued interest and second in respect of principal.
Maker shall not be permitted to assign or transfer its rights and obligations under this
Promissory Note to a third -parry without the prior written consent of the Payee.
Maker shall be responsible for the payment of all Documentary Stamps for this Note.
No invalid provisions of this Note shall affect or impair any other provision. Maker and
each endorser, surety, and guarantor acknowledge receipt of a completed copy of this Note.
MAKER AND PAYEE, EACH AFTER CONSULTATION WITH FLORIDA
COUNSEL, KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING
OUT OF, UNDER, OR IN CONNECTION WITH THIS NOTE, OR THE TRANSACTIONS OR
OBLIGATIONS UNDER WHICH THIS NOTE WAS DELIVERED, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR
ANY ACTIONS OF ANY PARTY RELATING TO THIS NOTE. MAKER AND PAYEE EACH
ACKNOWLEDGE THAT THE PROVISIONS OF THIS PARAGRAPH ARE A MATERIAL
INDUCEMENT TO PAYEE'S ACCEPTANCE OF THIS NOTE AND MAKER AGREEING TO
THE TERMS OF THIS NOTE.
No amendment, modification, waiver, or discharge of this Note, or any provision of this
Note, shall be valid or effective unless in writing and signed by Payee and Maker.
This Note shall be construed in accordance with the laws of the State of Florida, exclusive
of its choice of law principles, and any suit, action, or proceeding arising out of or relating to this
Note must be commenced and maintained in a court of competent subject matter jurisdiction in
Miami -Dade County, Florida, and Maker consents to such jurisdiction and venue and waives all
objections (including, without limitation, forum non conveniens) thereto. Maker agrees to pay the
City's attorney's fees and costs if the City files any legal action to enforce this Note.
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WITNESS:
MAKER: MB RE Investments, LLC
Signature
By:.
Print Name Name:
Title:
STATE OF FLORIDA:
COUNTY OF MIAMI-DADE:
The foregoing instrument was acknowledged before me by means of ❑ physical presence or ❑
online notarization, this
(SEAL)
day of , 202_, by
Personally Known or Produced Identification
Notary Public, State of Florida
(Signature of Notary Public)
(Print, Type, or Stamp Commissioned
Name of Notary Public)
Type of Identification Produced: _
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City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
�Frr of *FLO
r;'p (305) 947-0606 City Hall
(305) 949-3113 Fax
MEMORANDUM
TO: Honorable Mayor and City Commissioners
VIA: Stan Morris, City Manager
FROM: Amy Canales, Planning and Zoning Director
DATE: March 19, 2026
RE: Terms and Conditions of the TDRs Promissory Note for the Miami Beach Club
Development Project
RECOMMENDATION:
This application is consistent with the City's Land Development Regulations.
REASONS:
The Applicant, MB RE Investments, LLC, is requesting approval of the payment agreement terms for the
purchase of Transferable Development Rights (TDRs) and Floor Area Ratio (FAR) development bonuses
associated with the Miami Beach Club development project. On February 19, 2026, the City
Commission approved the project site plan and authorized the Applicant's use of payment agreements
for the TDR purchase and FAR development bonuses. As a condition of that approval, the Applicant is
required to enter into two separate payment agreements —one for the TDR purchase and one for the
FAR development bonuses. The proposed agreements are structured as Promissory Notes and are
attached for review. The following summarizes the key terms of the notes:
• The amount due for FAR development bonuses is $13,040,479.34 and the amount due for the
purchase of TDRs is $13,609,370.25, together with interest on each unpaid principal balance, at
the rate of Prime plus one-half percent (0.5) per annum.
• Interest on the note will change with each change in the prime rate published in the Wall Street
Journal.
• The Applicant shall pay annual interest payments on the principal amount.
• The principal amount and accrued interest shall be due and payable no later than ninety (90) days
following the issuance of a Temporary Certificate of Occupancy (TCO) for any unit or area within
Item Number: 9.13
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the proposed Miami Beach Club development project.
• If any payment of interest or principal payment is not received by the City within five (5) days after
its due date, the Applicant shall pay the City a late charge equal to five percent (5%) of the
overdue payment.
ATTACHMENTS:
Resolution
MB RE Investments, LLC Promissory Note -TDRs
Item Number: 9.113
69