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Home My WebLink AboutReso 2015-2405 RESOLUTION NO. 2015 - 2_405 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, APPROVING A PURCHASE AGREEMENT BETWEEN THE CITY OF SUNNY ISLES BEACH AND DEZER UNIVERSAL,LLC,ATTACHED IN SUBSTANTIALLY THE SAME FORM HERETO AS EXHIBIT "A", TO PURCHASE REAL PROPERTY LOCATED AT 18080 COLLINS AVENUE; AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS,Dezer Universal,LLC (the"Seller")is the owner of that certain real property located at 18080 Collins Avenue (the "Alamo site"); and WHEREAS,the City Commission is desirous of acquiring property to create a multi-purpose building that will serve as an educational facility for K-2 students residing in the City and other uses; and WHEREAS, the City has negotiated with Seller and have reached an agreement that is beneficial to both parties and is in the best interest of the City; and WHEREAS,The City Commission wishes to approve the Purchase and Sale Agreement in substantially the same form for property located at 18080 Collins Avenue attached Exhibit "A to build a multi-purpose building for the benefit of the residents of the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Approval of Purchase Agreement. The Purchase Agreement between the City and Dezer Universal, LLC, attached in substantially the same form hereto as Exhibit "A" is hereby approved. Section 2. Authorization of the Mayor. The Mayor is hereby authorized to execute the Purchase Agreement between the City and Dezer universal, LLC. Section 3. Authorization of City Manager and City Attorney. The City Manager and City Attorney are hereby authorized to do all things necessary to effectuate this Resolution. Section 4. Effective Date. This Resolution will become effective upon adoption PASSED AND ADOPTED this 16th day of April, 2015. Approving Sale and Purchase of 18080 Collins Ave.doc Page 1 of 2 A George '. Scholl, Mayor ATTEST: fc., :vv1/4.4. .Ak 15.34,:4.44) Jane A. Hines, MMC, City Clerk APPROVED AS TO FORM 0 AND " •. ) CIENCY: /Fans Ogrt,ity A ttorney Moved by: Y `C..t nay/ GIYT TO Seconded by: ClDw w g ib10 Sit 111� Vote: 6-0 Mayor Scholl (Yes) (No) Vice Mayor Gatto ✓(Yes) (No) Commissioner Aelion (Yes) (No) Commissioner Goldman /(Yes) (No) Commissioner Levine /(Yes) (No) Approving Sale and Purchase of 18080 Collins Ave.doc Page 2 of 2 AGREEMENT OF PURCHASE AND SALE This Agreement made this I day of April, 2015,between THE CITY OF SUNNY ISLES BEACH, a Florida municipal corporation whose mailing address is 18070 Collins Avenue, Sunny Isles Beach, Florida 33160 ("Buyer" or "City") and DEZER UNIVERSAL, LLC, a Florida limited liability company whose mailing address is 18001 Collins Avenue, 31st Floor, Sunny Isles Beach, FL 33160 ("Seller"). NOW, THEREFORE, for and in consideration of the mutual covenants, representations, warranties, and agreements contained herein, and for other good and valuable consideration, Seller agrees to sell to Buyer and Buyer agrees to buy from Seller the following described property upon the terms and conditions hereinafter set forth: 1. Description of Property. Seller has fee simple title to that certain real property located in Miami-Dade County, Florida, which is more particularly described in Exhibit"A" attached hereto and by this reference made a part hereof(the"Property"). 2. Purchase Price. The purchase price ("Purchase Price") to be paid by Buyer to Seller for the Property shall be the sum of Seven Million Dollars ($7,000,000.00), subject to credits, prorations and adjustments as provided in this Agreement. The Purchase Price shall be payable by Buyer to Seller at Closing. 3. Closing. It is mutually understood that the execution of this Agreement by Seller constitutes conditional acceptance and is subject to final acceptance and approval by the City Commission of the City of Sunny Isles Beach pursuant to the necessary vote at a duly called Commission meeting scheduled for April 16, 2015. Notice of final City Commission acceptance shall be provided to Seller after the City Commission meeting at which this matter is presented for approval. The Closing shall be held at City Hall of the City of Sunny Isles Beach, located at 18070 Collins Avenue, Fourth Floor, Sunny Isles Beach, Florida 33160, with Closing to occur 1 of 14 112371632.2 SIB no later than thirty (30) days following City Commission acceptance and approval at a duly called City Commission meeting. (a) Seller shall execute and deliver to Buyer the following documents with respect to the Property: (i) A statutory warranty deed ("Deed") subject only to the Acceptable Exceptions; (ii) A customary construction lien affidavit; (iii) An affidavit of exclusive possession of the Property being conveyed subject to the lease with Vanguard Car Rental USA Inc. ("the lease"); (iv) A non-foreign affidavit in a form reasonably acceptable to Buyer; (v) Appropriate assignments or bills of sale transferring to Buyer all personal property or property rights (including, but not limited to, the Documents) contemplated by this Agreement or reasonably requested by Buyer in forms reasonably acceptable to Buyer,free and clear of all liens, claims or encumbrances; (vi) If applicable, appropriate evidence of Seller's formation, existence and authority to sell and convey the Property; and (vii) Such other documents that the Title Company may reasonably require in connection with the issuance of the Title Policy to Buyer and the delivery of good and marketable title to the Property from Seller to Buyer as provided in this Agreement, including, but not limited to, an appropriate "gap" affidavit in order to delete the "gap" exception and such affidavits required for deletion of the matters of survey, unrecorded easements, parties in possession and construction lien exceptions otherwise appearing on the Title Policy. (viii) An assignment of Seller's interest under the Lease and an assumption of the Lease by the Buyer. (b) Seller and Buyer shall each execute counterpart-Closing statements in a customary form (c) Buyer's cash to close will be delivered by wire transfer drawn on a bank reasonably acceptable to Seller. 2 of 14 112371632.2 Sl 4. Pedestrian Bridge Easement. 4.1 Easement Agreement. The Seller or an affiliated corporation represents that it is the owner and operator of the Trump International Hotel located at 18001 Collins Avenue, Sunny Isles Beach. Seller or the affiliated corporation agrees to enter into an easement agreement to facilitate the construction and maintenance of the east tower of the pedestrian bridge to be located on the south side of the Trump International Hotel. The precise location of the Easement parcel requires agreement by both parties. Subject to the approval of the City Commission, the easement agreement shall be executed prior to Closing. The requirement discussed herein to enter into an easement agreement for a pedestrian bridge shall not be construed as approval by the Buyer or City Commission to construct or approve a pedestrian bridge. The construction of the pedestrian bridge is a matter within the discretion of the City Commission. This provision shall survive Closing. 4.2 Trump International Hotel Signage. In the event that the east tower of the pedestrian bridge obstructs the south visibility of the existing monument sign located at the Trump International Hotel, City agrees to use its best efforts to install appropriate directional signs on the tower to identify the location of the hotel. This provision shall survive Closing. 4.3 Naming Rights. Subject to the approval of Florida Department of Transportation ("FDOT") and the City Commission of the City of Sunny Isles Beach, the City agrees to consider a request to name (that includes signage) the pedestrian bridge with a family name submitted by the Seller or Michael or Gil Dezer prior to the construction of the Pedestrian Bridge. It is understood by the parties that approval by FDOT is required before the City Commission considers the request discussed herein. This provision shall survive closing. 5. Transfer of Development Rights. Prior to Closing and upon approval of the City Commission which shall be given upon the acceptance and approval of this Agreement for Purchase and Sale,the City agrees to donate to the Seller, without charge, 53,750 square feet of unrestricted Transfer of Development Rights ("TDRs") and 25 dwelling units inclusive of the west side only TDRs of 33,750 which were previously donated to the Seller. The donation of the TDRs is subject to revocation by the City if the Closing does not occur. This provision shall survive Closing. 3 of 14 112371632.2 SIB 6. Office Space. Seller is hereby granted the option to purchase at Buyer's cost of construction and acquisition, up to 30,000 square feet of office space in the top floors of the proposed multi-purpose building to be located on the Property. Buyer shall notify Seller in writing of the option to purchase upon the completion of 60% of the architectural plans for the building. Buyer agrees to give Seller a thirty (30) day review period to review the 60% plans. The thirty(30) day review period shall commence upon delivery of the 60%plans to the Seller. Prior to the end of the review period, Buyer agrees to provide Seller with the price for the purchase of the office space (on a per sq. ft. basis) based on Buyer's cost of acquisition and construction. Seller shall, by providing written notice to the Buyer, exercise the option to purchase no later than 120 days from the date in which the review period ends or prior to approval of final design by the City Commission, whichever occurs first. Buyer agrees to give Seller at least 10 days written notice before final approval of the design by the City Commission. If Seller fails to exercise the option to purchase within the time period set forth herein, the option to purchase shall expire and be declared null and void. The option to purchase discussed herein is not transferrable except to an affiliate of the Seller. The term "affiliate of the Seller" means a corporate entity in which Michael or Gil Dezer is the majority owner or majority shareholder. If the Seller exercises the option to purchase set forth herein, the closing of the purchase under the option shall take place within 60 days after the building and the space the Seller is purchasing has a certificate of occupancy. The terms under which the purchase and closing shall take place shall be substantially in accordance with the Florida Bar approved form of contract of purchase and sale for real estate. This provision shall survive Closing. 7. Closing Costs. Closing Costs. The parties shall bear the following costs: (a) Buyer shall be responsible for (i) the recording cost of the Deed, (ii)the cost of the Survey(if obtained by Buyer), (iii)the cost of the Commitment and the premium for the Title Policy obtained by Buyer. (b) Seller shall be responsible for payment of costs of curing any Title Defects, any documentary stamp and surtaxes due on the Deed and the recording costs in connection with any curative instruments relating to same. 4 of 14 112371632.2 SIB (c) Each party shall be responsible for payment of its own legal fees. 8. Prorations. The real estate taxes for the year in which the transaction is closed shall be prorated as of the Closing Date and the pro rata amount thereof shall be credited against the Cash Balance. The proration shall be based upon the previous year's taxes, if the current year's assessment is not available. Seller shall pay all assessments and liens for public improvements against the Property, if any, which are as of the Effective Date certified liens. Either party may request and shall be entitled to reproration of taxes when the actual amount for the year of Closing is levied. 9. Title and Survey. (a) Within thirty (30) days of the Effective Date (hereinafter defined), Buyer shall obtain the following: (i) a title report issued by a title insurance company acceptable to Buyer ("Title Company") enabling a title agent selected by Buyer to issue an ALTA Form B title insurance commitment ("Commitment") covering the Property, whereby the Title Company agrees to issue an ALTA Form B owner's policy of title insurance ("Title Policy") in the amount of the Purchase Price at Closing, subject only to the matters ("Acceptable Exceptions") which do not adversely affect marketability (as determined by the standards adopted by the Florida Bar) of title to the Property or affect the ability of Buyer to facilitate the development of the Property, and (ii) hard copies of all exceptions to title set forth in the Commitment(collectively,the "Title Evidence"). Buyer may select their own title agent. (b) Buyer shall have the right, at their option and at their sole cost and expense, to obtain an up to date survey of the Property (certified to a date after the Effective Date) prepared in accordance with the minimum technical standards imposed by the Florida Board of Land Surveyors and signed under seal, which survey shall be certified to Buyer and the Title Company ("Survey"). If obtained by Buyer, the Survey shall be considered as a part of the Title Evidence. (c) Buyer shall review the Title Evidence and shall, within fifteen (15) days following receipt of the Title Evidence, notify Seller in writing ("Title Objection Notice") of any matters in the Title Evidence or Survey adversely affecting the marketability (as determined by the standards adopted by the Florida Bar) of title to the Property or affecting the ability of the Buyer to facilitate the development of the Property ("Title Defects"). Upon receipt of the Title Objection Notice, Seller shall use its good faith efforts to cure such Title 5 of 14 112371632.2 SIB Defects. In the event that Seller is unable to cure the Title Defects within fifteen (15) days of the Title Objection Notice ("Title Cure Period") after good faith efforts to do so, Seller shall notify Buyer in writing as to which Title Defects remain uncured on or before the end of the Title Cure Period and Buyer, at Buyer' option, may: (i) elect to accept title to the Property subject to the Title Defects without any adjustment to the Purchase Price (in which event the remaining Title Defects shall be deemed Acceptable Exceptions); (ii)terminate this Agreement by written notice thereof to Seller, whereupon this Agreement shall be terminated, and both parties shall thereafter be released from all further obligations hereunder; or (iii) elect to extend the Title Cure Period for an additional 15 days (not to exceed forty-five (45) days), and if upon the expiration of such period Seller shall not have cured the Title Defects, Buyer shall have the options set forth in (i) or (ii) above. During the period described in (iii)above, Buyer shall have the right, at their sole election, to attempt to cure the Title Defects at their sole expense. The Closing Date shall be extended to the extent necessary to permit Seller the opportunity to cure any Title Defects. At Closing, Seller shall provide Buyer with a gap affidavit in form reasonably acceptable to the Title Company to permit the Title Company to insure against adverse matters first appearing in the Public Records on a date subsequent to the effective date of the Commitment and prior to the recording of the "Deed" (as hereinafter defined) required by the terms of this Agreement as permitted and in accordance with the requirements of Section 627.7841, Florida Statutes. Seller agrees that it will not take any action after the Effective Date of this Agreement which shall adversely affect the status of title to the Property. Seller shall be required to cure any Title Defects and Seller shall satisfy any encumbrances or liens at time of closing. 10. Leasehold Interests. An Estoppel letter from the tenant or person in possession of the Property shall be furnished to the Buyer by Seller prior to the Closing. The Estoppel letter shall specify the nature and duration of the tenancy or occupancy. The Buyer shall accept an assignment of the lease between the Seller and the existing tenant provided that Seller pays to Buyer the lease termination fees owed to the tenant, which fees are in the amount of Forty One Thousand Two Hundred Fifty Dollars ($41,250.00). 6 of 14 112371632.2 0 9 11. Remedies on Default of Buyer. If Buyer fails to close, and the Seller is not in default hereunder, and title is as required under this Agreement, Seller may seek specific performance against Buyer, or Seller may terminate this Agreement in which case all rights and obligations of the parties hereunder shall terminate. 12. Remedies on Default of Seller. If for any reason, other than failure of Seller to render title to the Property marketable, Seller fails, neglects or refuses to perform this Agreement, Buyer may seek specific performance against Seller, or Buyer may terminate this Agreement in which case all rights and obligations of the parties hereunder shall terminate. 13. Condemnation. In the event of the institution of any proceedings, or if subject to a bona fide threat of such proceedings, judicial, administrative or otherwise, which shall relate to the proposed taking of any portion of the Property by eminent domain, Buyer may either cancel this Agreement, whereupon this Agreement shall be of no further force and effect, or elect to purchase the Property. If Buyer elects to purchase the Property, Buyer shall be entitled to that portion of any award, damages or other consideration paid or to be paid in connection with such taking or sale to which Buyer would have been entitled had it been the owner of the Property prior to such taking, sale or threat of taking. 14. Brokerage. Seller and Buyer each represent to the other that they have not dealt with any broker, salesperson or agent in connection with the execution and delivery of this Agreement, and the other party shall not be required to pay any commission whatsoever with respect to this Agreement resulting from the actions of the party making such representations. Seller and Buyer each indemnify and hold each other harmless from and against any and all claims, losses, costs, damages, liabilities and expenses (including without limitation, reasonable 7 of 14 112371632.2 SIB attorneys' and paralegal fees) resulting from a breach by the indemnifying party of the foregoing representation. 15. Hazardous Substances and Toxic Waste. Seller represents and warrants that to the best knowledge of Seller no hazardous substance or toxic waste are or have been stored upon the land or used in connection with the land, nor, to its knowledge are any hazardous substances or toxic waste or other pollutants contained upon or under the land or being discharged from the land directly or indirectly into any body of water. Seller knows of no breach of applicable laws or regulations, nor of any underground tank located on or under the property. To Seller's best knowledge, neither Seller nor any of its affiliates have generated, recycled, reused, sold, stored, handled, transported or disposed of any Hazardous Materials on the Property during any period of time Seller has had an interest in the Property. To the best of Seller's knowledge, without making any independent investigation, the Property complies with all applicable local, state, federal environmental laws, regulations, ordinances or administrative or judicial orders relating to the generation, recycling, reuse, sale, storage, handling, transport and/or disposal of any Hazardous Materials. In the event that Buyer discovers the existence of any Hazardous Materials within Thirty (30) days from the Effective Date of this Agreement (hereinafter referred to as "Environmental Due Diligence Period"), the Buyer shall, within seven (7) days following such discovery, notify the Seller in writing ("Hazardous Materials Notice")of the existence of any Hazardous Materials Upon receipt of such notice from the Buyer, the Seller agrees to remediate the identifiable Hazardous Materials issue; provided however, that Seller shall have no obligation to spend more than One Percent (1%) of the Purchase Price to cure any Hazardous Materials defects. In the event that Seller is unable to satisfactorily remediate the Property to provide Buyer with a site that is satisfactory to Buyer and to permit Buyer to close on the Property, Buyer shall have the unilateral right to notify Seller and to terminate this Agreement. In the event the costs to remediate the Hazardous Materials exceed 1% of the Purchase Price, and if Buyer does not elect to exercise their unilateral right to terminate this Agreement, then any additional costs to remediate the Hazardous Materials shall be the sole responsibility of the Buyer. 8 of 14 112371632.2 16. Inspection. Buyer, its agents, employees and representatives shall have access to the Property within ten (10) days of the Effective Date of this Agreement with full right to: (a) inspect the Property, and (b) to conduct any and all inspections, investigations and tests thereon, including, but not limited to, soil borings and hazardous waste studies, and to make such other examinations with respect thereto as Buyer, its counsel, licensed engineers, surveyors, appraisers, or other representative may deem reasonably necessary ("Due Diligence Investigations") provided proper notice is given to Seller and all agents are accompanied by Seller's representatives with the understanding to maintain full confidentiality and not to disturb Seller's Tenant. Any Due Diligence Investigations of the Property by Buyer and all costs and expenses in connection with Buyer's Due Diligence Investigations of the Property shall be at the sole cost of Buyer and shall be performed in a manner not to unreasonably interfere with Seller's ownership of the Property. Buyer shall remove or bond any lien of any type, which attaches to the Property by virtue of any of Buyer' Due Diligence Investigations. Upon completion of any such Due Diligence Investigations, Buyer shall restore any damage to the Property caused by Buyer's Due Diligence Investigations except in the event of any gross negligence or misconduct by Seller or its agents. Buyer hereby indemnifies and holds Seller harmless, to the limit of Section 768.28 Florida Statutes from all loss, cost or expense, including, but not limited to, reasonable attorneys' fees and court costs resulting from Buyer's Due Diligence Investigations in connection with the Property. Notwithstanding anything contained herein to the contrary, Buyer shall not indemnify or hold Seller harmless with respect to, and Buyer shall not be required to, remove, remediate, dispose or otherwise deal with any "Hazardous Substance" (as hereinafter defined), samplings derived from the Property or property containing Hazardous Substances which it finds in connection with its Due Diligence Investigations of the Property. In the event the transaction does not close, Buyer will, upon written request, provide Seller all work product and information during due diligence at no cost or expense to Seller. Within ten (10) business days of the Effective Date, Seller shall deliver to Buyer hardcopies of any surveys, engineering reports, inspections reports and environmental studies, if any, which Seller has in its possession for Buyer's review. Additionally, Seller shall provide 9 of 14 112371632.2 Buyer such other documentation as Buyer may reasonably request with respect to the Property. Seller shall only provide the foregoing reports to the extent Seller has same in its possession. This provision shall survive Closing. 17. Police Powers. NOTHING IN THIS AGREEMENT IS INTENDED TO LIMIT OR RESTRICT THE POWERS AND RESPONSIBILITIES OF THE CITY IN ACTING ON APPLICATIONS FOR COMPREHENSIVE PLAN CHANGES, OR APPLICATIONS FOR ANY OTHER DEVELOPMENT APPROVALS BY VIRTUE OF THE FACT THAT THE CITY MAY HAVE BEEN REQUIRED TO PROVIDE TRANSFER OF DEVELOPMENT RIGHTS TO SUCH APPLICATIONS. THE PARTIES FURTHER RECOGNIZE AND AGREE THAT THESE PROCEEDINGS SHALL BE CONDUCTED OPENLY, FULLY, FREELY AND FAIRLY IN FULL ACCORDANCE WITH THE LAW AND WITH BOTH PROCEDURAL AND SUBSTANTIVE DUE PROCESS TO BE ACCORDED THE SELLER AND ANY MEMBER OF THE PUBLIC. NOTHING CONTAINED IN THIS AGREEMENT SHALL ENTITLE THE SELLER TO COMPEL THE CITY TO TAKE ANY SUCH ACTIONS, SAVE AND EXCEPT THE CONSENTS TO THE FILING OF SUCH APPLICATIONS FOR LAND USE APPROVALS, REZONINGS, COMPREHENSIVE PLAN AMENDMENTS OR OTHER REQUIRED APPROVALS, AS MORE FULLY SET FORTH HEREIN, AND TO TIMELY PROCESS SUCH APPLICATIONS. 18. Attorneys' Fees and Costs. In the event either party hereto shall default in the performance of any of the terms and conditions of this Agreement, the prevailing party shall be entitled to recover all costs, charges and expenses of enforcement, including reasonable attorneys' fees incurred in a trial or appellate proceeding. 19. Parties in Interest. 10 of 14 112371632.2 1 All the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the respective successors and assigns of the Buyer and Seller. 20. Entire Agreement. This Agreement constitutes the entire Agreement between the parties relative to the transaction contemplated herein and neither this Agreement nor any term or provision hereof may be changed or waived except by an instrument in writing and executed by Seller and Buyer. 21. Governing Law. This Agreement shall be interpreted and enforced in accordance with the laws of the State of Florida. 22. Notices. Notices under this Agreement shall be deemed served when sent by prepaid overnight courier or deposited in the United States mail, registered or certified mail, return receipt requested with sufficient postage and directed to the address specified as follows: SELLER: Gil Dezer, Manager Michael Dezer Dezer Development, LLC 18001 Collins Ave. 31st Floor Sunny Isles Beach, FL 33160 WITH COPY TO: Andrew Chesnick Dezer Universal, LLC 18001 Collins Avenue, 31st Floor Sunny Isles Beach, FL 33160 AND A COPY TO: David Shear,Esq. Arnstein& Lehr, LLP 200 S. Biscayne Blvd. Suite 3600 Miami,FL 33131 BUYER: Christopher J. Russo, City Manager 11 of 14 112371632.2 City of Sunny Isles Beach 18070 Collins Avenue, 4h Floor Sunny Isles Beach,FL 33160 WITH COPY TO: Hans Ottinot,Esq.,City Attorney City of Sunny Isles Beach 18070 Collins Avenue, 4th Floor Sunny Isles Beach,FL 33160 23. Insertion of Corrections or Modifications. Typewritten or handwritten provisions inserted on this Agreement or on the exhibits hereto (and initialed by both parties) shall control all printed provisions in conflict therewith. 24. Time. Time is of the essence in this Agreement. 25. Counterparts: Electronic Signatures. This Agreement may be executed simultaneously or in counterparts, each of which together shall constitute one and the same Agreement and electronic signatures shall be treated as originals for all purposes. 26. Agreement not to be Recorded. This Agreement shall not be recorded in any public records by either party hereto. 27. Effective Date. The effective date of this Agreement ("Effective Date") shall be date the Agreement is executed by the Mayor of the City of Sunny Isles Beach. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered, all of which has been done on the date shown below for each party. (Reminder of page intentionally left blank) SELLER: DEZER UNIVERSAL,LLC WITNESS: 12 of 14 112371632.2 SELLER: DEZER U VE.' AL,LLC WITNESS: 4A- 'Print L BY: Gil Dezer,Manager ,peYid j'/A/V i DATE: I/'IL BUYER: CIT SUNNY ISLES BEACH ATTEST BY: _ • . . 111 BY: Jane Hines, MMC, City Clerk Ge, ge H. Scholl,Mayor APPROVED : TO FORM AND LEGA ; 4V Y BY: / I m. 'ans Ottinot, City Attorney l7. DATE: frr4 13 of 13 112364072.2 ' I3 EXHIBIT"A" Legal Description All of Tracts A and B of the Plat of S.I.B. Government Center,according to the Plat thereof, as recorded in Plat Book 168,Page 75,of the Public Records of Miami-Dade County,Florida. Also known as: A portion of Plat of S.I.B. GOVERNMENT CENTER, according to the Plat thereof, as recorded in Plat Book 168, Page 75, of the Public Records of Miami-Dade County, Florida; more particularly described as: All of Parcel 1, LESS the North 150 feet, as measured along the East line thereof, and LESS the South 499.145 feet as measured along the East line thereof, of the REPLAT OF TRACT"A" SUNNY ISLES SHORES SECTION A, according to the Plat thereof, recorded in Plat Book 64, Page 74, of the Public Records of Miami-Dade County,Florida. 112358824.2 I""Y is< Cit of Sunn Isles Beach City Commission Fs y y George"Bud"Scholl,Mayor F 18070 Collins Avenue, Suite 250 Jeanette Gatto,Vice Mayor Isaac Aelion, Commissioner o i' _, = Sunny Isles Beach, Florida 33160 * r4,I h « * Jennifer Levin,Commissioner (305)947-0606 City Hall Dana Goldman,Commissioner * , * (305)949-3113 Fax yF's. * F 1.0‘'\OP Sir (305)947-2150 Building Department Christopher J.Russo City Manager r �o (305)947-5107 Fax Hans Ottinot,City Attorney r of SUN Jane A.Hines,MMC,City Clerk MEMORANDUM TO: Honorable City Commission FROM: George "Bud" Scholl, Mayor DATE: April 16, 2015 RE: Resolution Approving the Purchase and Sale of 18080 Collins Avenue and the Donation of property located at 15800 Collins Avenue RECOMMENDATION: This Resolution is presented for your consideration. REASONS: As previously stated in a progress report memorandum to the City Commission, we have negotiated the purchase of the property commonly known as the Alamo site, located at 18080 Collins Avenue, from the current owner, Dezer Universal, LLC (the "Dezers"). The rationale for purchasing the Alamo site is as follows. We are able to avoid a costly eminent domain process to find the ideal property for a school expansion and provide additional facilities for governmental and commercial uses. Additionally, we agreed to accept the donation of the property located at 15800 Collins Avenue in exchange for Transfer of Development Rights ("TDRs"). Background As you may know, City Manager Christopher Russo, City Attorney Hans Ottinot and I met with School Board Member Dr. Martin Karp and a group of high-ranking school system officials who enthusiastically indicated that the City's plan for a K-2 expansion would work and that they were committed to contributing roughly $10 Million Dollars to the school expansion project. The proposed plan is to build a multi-purpose building with the school oriented to the rear of the building encapsulated within this space. The City would then have community and commercial space within the front and upper floors of the building that would be completely separate from the school portion. The Dezers have indicated that they would be willing to purchase at the City's cost up to 30,000 square feet of office space to move their executive offices from across the street. Additionally, the City could house the Civic/Senior Center in this space and some additional needs of the City. It is proposed that the building be constructed as a commercial condominium whereby the School Board would purchase and own their space and any commercial tenants (like the Dezers) would purchase and own their own space. This is a very efficient mechanism for property tax purposes and allocation of operating expenses for the purposes of maintaining and managing the building. Purchase Price of Alamo Site As required by law, we have received two appraisals for the Alamo site that currently value the parcel between $9.5 million and $10 Million Dollars. These appraisals are attached to the Resolution. These appraisals clearly indicate the market for the property. The City is paying $7 million dollars cash, and donating 20,000 square feet of Transfer of Development Rights ("TDRs"), and releasing the "west side only restriction" imposed on 33,750 square feet of TDRs previously donated as part of the sale of the Alamo site to the Dezers. In exchange, we will get the Alamo property plus a pedestrian bridge easement parcel on the southern corner of the Trump International Hotel so we have the potential for a future pedestrian bridge crossover. The following is a breakdown of the purchase. Cash $7 million dollars New TDRs $2.5 million dollars = 20,000 sq. ft. of TDRs x $125 per square foot (From the City's TDR bank) Old TDRs $573,750 = 33,750 sq. ft. of TDRs (previous donation) x $17 per square foot (This is what we have charged when we allowed west side TDRs to become east or west.) Total Consideration $10,073,750. Expansion of Intracoastal Park System For a number of years, the City Commission had a strong desire to expand the Intracoastal Park System to Arlen House. We have negotiated a deal that will permit the expansion of Intracoastal Park. Before former Mayor Edelcup left office, he was negotiating with the Dezers to acquire the property located at 15800 Collins Avenue ("Sales Center') to expand the Intracoastal Park area. The property is located in front of the Arlen House Marina. We resurrected that negotiation and tied it into the acquisition of the Alamo site described above making the two into a package. We agreed to honor the terms of the agreement that was previously negotiated regarding the Sales Center. The City agrees to donate 80,000 square feet of TDRs in exchange for ownership of the Sales Center property. The City will allow the Dezers to lease the property at a nominal rent for three years. Most importantly, the transaction is mutually beneficial because the City is able to recapture most of the donated TDRs when it converts the property to a park. There is no fiscal impact in this transaction and very little impact to the City's TDR Bank. The following is the existing development rights on the Sales Center property: Lot area: 31,072 sq. ft. (0.71 acres) Zoning : RMF-2 (Allows for a maximum of 60 dwelling units and 2.5 FAR per acre) Density: 42 dwelling units FAR: 77,680 sq. ft. We trust that the above has provided you with the relevant details and would appreciate your consideration and approval. 2 Clobus,-McLemore & Duke, Inc. REAL ESTATE APPRAISAL REPORT OF A PRIME COMMERCIAL DEVELOPMENT SITE LOCATED AT 18080 COLLINS AVENUE SUNNY ISLES BEACH, MIAMI-DADE COUNTY, FLORIDA 1 a I FOR: MR. HANS OTTINOT CITY ATTORNEY CITY OF SUNNY ISLES BEACH 18070 COLLINS AVENUE,4T" FLOOR SUNNY ISLES BEACH, FL 33160 PREPARED BY: WALTER B. DUKE, III, MAI, CCIM STEVE KUHN 2860 MARINA MILE, SUITE 109 FORT LAUDERDALE, FLORIDA 33312-4804 MARINA MILE BUSINESS PARK 2860 MARINA MILE,SUITE 109 opus FORT LAUDERDALE,FLORIDA 33312 MC eipore ^� D u k- TELEPHONE(954)587-2701 inc _1 a t FACSIMILE(954)587-2702 WEBSITE www.cmdflorida.com MIAMI-FORT LAUDERDALE-WEST PALM BEACH-KEY WEST DIRECT LINE(954)854-2044 EMAIL dukes cmdflonda.com Walter B.Duke,III,MAI,CCIM STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ375 March 2, 2015 Mr. Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue, 4th Floor Sunny Isles Beach, FL 33160 Re: 1.027-Acre Commercial Development Site 18080 Collins Avenue Sunny Isles Beach, Miami-Dade County, Florida 33160 Dear Mr. Ottinot: As requested, Clobus, McLemore & Duke Inc. (CMD) has performed a real estate appraisal of the above referenced property. The attached Appraisal Report is intended to comply with the reporting standards set forth under Standard Rule 2-2 of the Uniform Standards of Professional Appraisal Practice(USPAP). The subject property is a 1.027 acre prime commercial development site situated along the west side of Collins Avenue in Sunny Isles Beach. The site is improved with a 1,377 square foot commercial building and is currently encumbered by a ground lease in conjunction with a car rental operation. The client is contemplating a purchase of the site and has requested a market value estimate of the underlying land, under the extraordinary assumption that the property is free from any lease encumbrances. Therefore, the purpose of the appraisal is to estimate the Market Value"As Is" of the fee simple interest in the subject site, as of February 18, 2015. The accompanying appraisal report describes in detail the neighborhood, site, improvements, approaches to value, and other pertinent data that was used to solve the appraisal problem. The Appraisal Report has been prepared in conformance with the appraisal regulations issued by the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation and the Code of Professional Ethics and Standards of Appraisal Practice of the Appraisal Institute. The report was prepared for and submitted to the City of Sunny Isles Beach for the intended use of establishing a fair purchase price for the subject property. This report cannot be used by any other person/entity or for any other purpose. Use of this report by others is not intended by CMD. This report is intended only for the use in providing data upon which the client may analyze the property for a potential purchase. No other purchasers or sellers of the subject property, nor any borrowers, are intended users of this appraisal report and no such third parties should use or rely on the appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. Mr. Hans Ottinot City Attorney City of Sunny Isles Beach March 2, 2015 Page 2 Extraordinary Assumptions — (1) The appraisers have relied on factual data regarding the subject property supplied to us by the client. While the appraisers have attempted to confirm this data where possible, we have prepared the appraisal assuming the information provided to us is factual, except where otherwise noted. (2) The site is improved with a 1,377 square foot commercial building and is currently encumbered by a ground lease in conjunction with a car rental operation. The client is contemplating a purchase of the site and has requested a market value estimate of the underlying land, under the extraordinary assumption that the property is free from any lease encumbrances. Hypothetical Conditions—None were employed. As a result of CMD's investigation and analysis, the Market Value "As Is" of the fee simple interest in the subject property, as of February 18, 2015, subject to the stated extraordinary assumptions was estimated to be$9,600,000. NINE MILLION SIX HUNDRED THOUSAND DOLLARS Thank you for the opportunity to serve you. Sincerely, CLOBUS, McLEMORE & DUKE, INC. Walter B. Duke, III, MAI, CCIM Steve Kuhn State-Certified General Real Estate Appraiser RZ375 State-Certified General Real Estate Appraiser RZ3157 CLOBUS,McLEMORE&DUKE, INC. MARINA MILE BUSINESS PARK-2860 MARINA MILE-SUITE 109-FORT LAUDERDALE,FLORIDA 33312-(954)587-2701-(954)587-2702 FAX-WWW.CMDFLORIDA.COM INTRODUCTION 1 Appraisal Summary CMD File Number 150204-L USPAP Reporting Format Appraisal Report Property Type Commercial Development Site Location 18080 Collins Avenue Sunny Isles Beach, Florida 33160 Folio Number(s) 31-2211-082-0010 31-2211-082-0020 Site Size 44,745 Square Feet/ 1.027 Acres Zoning District B-1, Neighborhood Business District; BD, Business Overlay District Zoning Authority City of Sunny Isles Beach Flood Zone "AE" FEMA Map Panel Number 120688-0153L; dated September 11, 2009 Census Tract 0001.23 Highest and Best Use Office/Municipal Development Interest Appraised Fee Simple Market Value Indications Sales Comparison Approach $9,620,000 Land Residual Technique $9,590,000 Market Value Estimate $9,600,000 Date of Appraisal February 18, 2015 Date of Report March 2, 2015 Appraisers Walter B. Duke III, MAI, CCIM Steve Kuhn 2860 Marina Mile, Suite 109 Fort Lauderdale, FL 33312-4804 Clobus, McLemore & Duke, Inc. INTRODUCTION 2 Table of Contents Appraisal Summary 1 Certification of Appraisal 4 PHOTOGRAPHS 5 PREMISES OF THE APPRAISAL 10 Appraisal Format 11 Type and Definition 11 Intended Use of the Appraisal 11 Terms and Definitions 11 Property Rights Appraised 11 Date of Appraisal 11 Date of Report 11 PRESENTATION OF DATA 12 Property Identification 13 Scope of Work 13 Property Identification 13 Property Inspection 13 Type and Extent of Data Research 13 Analysis Applied to Arrive at Opinion or Conclusions 14 Property Information 14 Extraordinary Assumptions/ Hypothetical Conditions 14 Street Address 14 Legal Description 14 Owner of Record 15 Property History 15 Pending Sale and/or Listing 15 Real Estate Tax Analysis 15 Schedule of Assessment and Taxation 15 Subject Property's Assessment and Taxation 16 Delinquent Taxes 17 Florida's Economic Conditions 18 Florida Market 20 Snapshot 20 South Florida Regional Analysis 21 Market Definition 21 Current Trends 22 Regional Location Map 23 Demographic Characteristics and Trends 24 Population 25 Labor Market 27 Housing Market 34 Highlights by County 35 Household Formation 37 South Florida Banking 38 Conclusion 39 Area/Neighborhood Description 40 Neighborhood Location Map 42 Site Description 43 Clobus, McLemore & Duke, Inc. INTRODUCTION 3 Boundary Survey 44 Improvement Description 45 Market Participants/Most Probable Purchaser 45 Marketability (SWOT Analysis) 45 Exposure Time 46 Reasonable Marketing Time 46 ANALYSIS OF DATA 47 The Appraisal Process 48 Highest and Best Use 49 Highest and Best Use As Though Vacant 49 Estimate of Land Value 53 Sales Comparison Approach 53 Comparable Land Sales Location Map 55 Analysis of Sales 56 Reconciliation 57 Land Residual Technique 58 Reconciliation and Final Estimate of Value 59 ADDENDA 60 ASSUMPTIONS, CONTINGENT AND LIMITING CONDITIONS DEFINITIONS LAND SALE PROFILES ZONING DEMOGRAPHICS QUALIFICATIONS Index of Tables South Florida MSA Largest Cities 22 Demographic Characteristics—South Florida vs. United States 24 South Florida Population 25 Population Projections by County— South Florida MSA—2015—2025 26 Employment Industries—South Florida Region 27 South Florida MSA— Largest Employers 28 Southeastern Florida— Unemployment Rate Trends 31 Annualized Population Growth by County— South Florida —2002 - 2012 38 Comparable Land Sales Summary 54 Value Indication —Sales Comparison Approach 58 Value Indication — Land Residual Technique 58 Clobus, McLemore & Duke, Inc. INTRODUCTION 4 Certification of Appraisal I certify that, to the best of my knowledge and belief, • the statements of facts contained in this Appraisal Report, upon which the analyses, opinions, and conclusions were based, are true and correct. • the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analysis, and conclusions. • I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. • my compensation is not contingent upon a minimum valuation or an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. • the appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. • the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute, which includes the Uniform Standards of Professional Appraisal Practice (USPAP). • the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • the use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. • as of the date of this report, Walter B. Duke has completed the continuing education program for Designated Member of the Appraisal Institute. • Steve Kuhn made a personal inspection of the property that is the subject of this report on February 18, 2015. Walter Duke viewed the property on February 20, 2015. • no one provided significant professional assistance to the person signing this report. The analyses, conclusions, and opinions contained in the report are the principal effort of the undersigned. However, certain functions, such as data collecting and verification, may have been performed by other members of the staff. • neither of the undersigned nor any other staff of Clobus, McLemore & Duke, Inc., have performed appraisal or other services regarding the subject property during the past three years. As a result of our investigation and analysis, the Market Value "As Is" of the fee simple interest in the subject property, as of February 18, 2015, was estimated to be $9,600,000. CLOBUS, McLEMORE & DUKE, INC. Walter B. Duke, Ill, MAI, CCIM Steve Kuhn State-Certified General Real Estate Appraiser RZ375 State-Certified General Real Estate Appraiser RZ3157 Clobus, McLemore & Duke, Inc. PHOTOGRAPHS PHOTOGRAPHS Clobus, McLemore & Duke, Inc. PHOTOGRAPHS 6 i , iL ii, ■1 .1 '{{ .J � 1 1:- L % /i r • imirt AERIAL VIEW OF SUBJECT SITE (FACING NORTH) t4Z111•7 -1 a, a j AERIAL VIEW OF SUBJECT SITE (FACING NORTH) Clobus, McLemore & Duke, Inc. PHOTOGRAPHS 7 / ,•' t / a . VIEW OF SUBJECT SITE (FACING WEST) , VIEW OF SUBJECT SITE (FACING EAST) Clobus, McLemore & Duke, Inc. PHOTOGRAPHS 8 • STREET SCENE—VIEW NORTH ALONG COLLINS AVENUE (SUBJECT SITE TO THE LEFT) t f T STREET SCENE—VIEW SOUTH ALONG COLLINS AVENUE (SUBJECT SITE TO THE RIGHT) Clobus, McLemore & Duke, Inc. PHOTOGRAPHS 9 4, 'S• it STREET SCENE—VIEW NORTH ALONG ATLANTIC BOULEVARD (SUBJECT SITE TO THE RIGHT) STREET SCENE—VIEW SOUTH ALONG ATLANTIC BOULEVARD (SUBJECT SITE TO THE LEFT) Clobus, McLemore & Duke, Inc. PREMISES OF THE APPRAISAL PREMISES OF THE APPRAISAL Clobus, McLemore & Duke, Inc. PREMISES OF THE APPRAISAL 11 Appraisal Format Per the prior agreement between CMD and the client, this Appraisal Report is presented in a format which conforms to the Uniform Standards of Professional Appraisal Practice (USPAP). Type and Definition The value opinion developed within this analysis is that of Market Value, as defined within the Addenda of this report. Intended Use of the Appraisal The report was prepared for and submitted to the City of Sunny Isles Beach for the intended use of establishing a fair purchase price for the subject property. This report cannot be used by any other person/entity or for any other purpose. Use of this report by others is not intended by CMD. This report is intended only for the use in providing data upon which the client may analyze the property for a potential purchase. No other purchasers or sellers of the subject property, nor any borrowers, are intended users of this appraisal report and no such third parties should use or rely on the appraisal for any purpose. All such parties are advised to consult with appraisers or other professionals of their own choosing. Terms and Definitions Real Estate and Appraisal specific terms are defined within the Addenda of this report. Property Rights Appraised The property rights appraised are all of those rights in the Fee Simple Estate. Date of Appraisal The effective date of this Appraisal Report is February 18, 2015. This date coincides with the latest inspection of the subject property and the date the photographs were taken. Date of Report The date of report is March 2, 2015. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA PRESENTATION OF DATA Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 13 Property Identification The subject property is a 1.027 acre prime commercial development site situated along the west side of Collins Avenue in Sunny Isles Beach. The site is improved with a 1,377 square foot commercial building and is currently encumbered by a ground lease in conjunction with a car rental operation. The client is contemplating a purchase of the site and has requested a market value estimate of the underlying land, free from any lease encumbrances. Scope of Work The scope work performed in a real estate appraisal is a description of the amount and type of information researched and the analysis applied in an assignment. Based upon the engagement letter, the scope of work for this assignment is as follows: Property Identification The subject property was identified by street address, legal description, survey and property description, as provided by the client. Property Inspection Although not required by USPAP, a viewing of the site was conducted on February 18, 2015. The property inspection was considered to be sufficient to identify the relevant property characteristics. The appraiser's inspection was limited to items and characteristics readily observable without the use of special testing or equipment. The visual inspection conducted was not equivalent to the assessment of a site, building, structure or mechanical system performed by a professional engineer or general contractor. Based upon generally accepted appraisal practices within the South Florida submarket, the degree of inspection was considered adequate to develop a credible appraisal. Type and Extent of Data Research Comparable land sales were obtained through a search of the data-services that categorize public records. Data sources included CoStar.com and Loopnet.com, two of the largest and most reliable on-line data-services available in South Florida. The subject's Sunny Isles Beach submarket was searched, with a concentration along the Collins Avenue corridor. These geographic parameters are consistent with the investment market in which the subject competes. Sales of commercially zoned sites were considered. CMD performed research necessary to produce the most current and relevant data available for the assignment. The physical characteristics of the sales were ascertained by a combination of public records, physical inspection, appraiser's files, listing information, verification with buyers, sellers, brokers and records contained Clobus, McLemore 8 Duke, Inc. PRESENTATION OF DATA 14 in the Property Appraiser's Office. The reported sale price was verified by examining the Florida Documentary Stamp Tax posted on the deed and by telephone verification with a party familiar with the transaction, when possible. Analysis Applied to Arrive at Opinion or Conclusions The Sales Comparison Approach and Land Residual Technique were applied to develop a credible opinion of value. Property Information Property information supplied by the client included a boundary survey and other general property information. For the purposes of this appraisal, this information is assumed to be accurate, factual and correct. Extraordinary Assumptions/ Hypothetical Conditions Extraordinary Assumptions — (1) The appraisers have relied on factual data regarding the subject property supplied to us by the client. While the appraisers have attempted to confirm this data where possible, we have prepared the appraisal assuming the information provided to us is factual, except where otherwise noted. (2) The site is improved with a 1,377 square foot commercial building and is currently encumbered by a ground lease in conjunction with a car rental operation. The client is contemplating a purchase of the site and has requested a market value estimate of the underlying land, under the extraordinary assumption that the property is free from any lease encumbrances. Hypothetical Conditions— None were employed. Street Address According to the Miami-Dade County Property Appraiser, the subject property possesses the following street address: 18080 Collins Avenue, Sunny Isles Beach, Florida 33160 Legal Description All of Parcel 1, less the North 150 feet, as measured along the East line thereof, and less the South 499.145 feet as measured along the East line thereof, of the Replat of Tract"A", SUNNY ISLES SHORES, Section "A" according to the Plat thereof recorded in Plat Book 64, at Page 74 of the Public Records of Miami-Dade County, Florida. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 15 Owner of Record Dezer Universal, LLC 18001 Collins Avenue, 31st Floor Sunny Isles Beach, FL 33160 Property History The subject site was acquired by the current owner in May 2012 for a recoded purchase price of$7,000,000 (OR Book/Page 28167/2863). The seller was the City of Sunny Isles Beach. A cursory search of the Miami-Dade County Public Records revealed no other transactions involving the subject site within the past five years. However, it should be noted that an abstract of title was not examined by the appraisers. After acquiring the property, the owner obtained site plan approval for the development of a 17-story, 136,250-square foot office tower with ground floor retail and a structured parking garage. The development order was granted in October 2013 and is scheduled to expire in October 2015 if permits have not been pulled. According to an official with the Planning and Zoning Board, it does not appear the owner will be moving forward with the project, and the City of Sunny Isles Beach is contemplating a purchase of the property. Pending Sale and/or Listing CMD has not been advised of any current contract for sale or listing involving the subject property. However, the City of Sunny Isles Beach is contemplating a purchase of the site. Real Estate Tax Analysis In Florida, the assessed values for real and commercial personal properties are established each year as of January 1, by each County Property Appraiser's Office. Under the Florida Constitution and Statutes, this value is to be the "Just Value" of the property. "Just Value" is considered to be synonymous with "Market Value." The tax due is computed by multiplying the annual millage rate with the assessed value of the property. Millage rates are the amounts paid to each taxing body for every $1,000 of Assessed Value (25 mills equal $25 per $1,000 of Assessed Value). Millage rates are established by all of the various taxing bodies that exist within a given taxing district. Schedule of Assessment and Taxation Property taxes are paid in arrears with the assessment and taxation process spread out over the year, as follows: Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 16 January 1 to June 30 Assess all parcels in the county July 1 Tax Roll certified to Department of Revenue August 1 TRIM Notices are mailed to property owners September 15 Deadline to apply for appeal of Assessed Value November 1 Taxes payable with a 4% discount December 1 Taxes payable with a 3% discount January 1 Taxes payable with a 2% discount February 1 Taxes payable with a 1% discount March 1 Taxes are due April 1 Taxes are past due May 31 Two-month grace period ends June 1 Tax Certificates sold at auction Subject Property's Assessment and Taxation The most recent assessment and taxation information for the subject property, as prepared by the Miami-Dade County Property Appraiser's Office, is presented as follows: Tax Structure -Subject Property Address 18080 Collins Ave, Sunny Isles Beach Folio Number(s) 31-2211-082-0010; 0020 Land Use Description Parking Lot/Retail Outlet Taxing Authority City of Sunny Isles Beach Tax Year 2014 2013 Land Value $3,579,440 $2,684,580 Building Value $1,000 $1,000 Extra Feature Value $58,130 $58,815 Market Value $3,638,570 $2,744,395 Assessed/Taxable Value $3,018,834 $2,744,395 Millage Rate 19.3257 19.3828 Ad Valorem Taxes $63,283 $53,194 Plus: Non Ad Valorem Taxes $0 $0 Gross Taxes $63,283 $53,194 Net Taxes Paid (4% early pmt discount) $60,752 $51,066 The reader should note that in 2008 the constitution of the State of Florida was amended to give non-homesteaded properties a 10% cap on annual assessment increases. Non-homesteaded properties are any property not considered to be a primary residence. In other words, if a property were to stay under the same ownership entity, the assessment for that property can be increased at a maximum of 10% annually. The protection of the 10% cap is lost when there is a change of ownership or control. This includes the transfer of the property by sale, foreclosure or other means (other than transfers to correct an error, transfers between spouses and transfers between legal and Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 17 equitable title). If the property is owned by a corporation, LLC, partnership or other such entity, the cap will also be lost upon a transfer of more than 50% of the ownership in that entity. Thus, a stock transfer may also trigger loss of the cap and re-assessment of the property at fair market value. However, in 2010, the legislature amended the statute to create an exception for publicly-traded companies if the transfer of the shares occurs through the buying and selling of shares on a public exchange. Delinquent Taxes According to the Miami-Dade County Tax Collector, there are no delinquent taxes owed on the subject property. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 18 Florida's Economic Conditions The Summary of Commentary on Current Economic Conditions is a regionalized economic report published by the Federal Reserve Board eight times a year. This report is informally referred to by economists as The Beige Book. The Atlanta Fed territory includes Alabama, Florida, Georgia, and portions of Louisiana, Mississippi, and Tennessee. The most recent Beige Book, issued January 14, 2015, reports that economic activity continued to improve for the Sixth District since the previous report. The outlook among the majority of contacts was positive with most expecting higher growth for early 2015. District merchants noted holiday sales levels were solid for November and early reports for December indicate much the same. Automobile sales continued at a solid pace. The hospitality sector reported a strong holiday season, continuing the level of activity that it had been experiencing all year long. Residential housing brokers and builders noted that home sales growth was flat to slightly down from the previous month while home prices continued to appreciate. Existing home inventories were flat from last month and new home inventories were flat to slightly up. Commercial contractors described construction activity as improving, with the multi-family segment of the market noted as particularly strong. Manufacturers indicated that overall activity strengthened since the previous report. On balance, banking contacts noted that loan demand improved. The District continued to experience job gains across most sectors. Similar to the previous report, contacts noted only mild cost pressures. Consumer Spending and Tourism — District retail contacts appeared upbeat heading into the holiday season. While sales on Black Friday were adequate, merchants indicated that pre-Thanksgiving discounting, online shopping, and stores opening on Thanksgiving Day, helped November end with solid results. Early reports for December appeared strong and merchants expect the additional day of shopping between Thanksgiving and Christmas to bode well for year-end results. Motor vehicles sales were robust as demand continued to grow. District auto dealers noted that customers were reacting immediately to lower gasoline prices by purchasing new, larger vehicles. Reports on tourism and business travel remained positive from late November through December. Tourism industry contacts reported a strong holiday season with high occupancy numbers at hotels and resorts. Hospitality contacts continued to report additional capital expenditures on tourism infrastructure as well as strong advanced bookings for the first two quarters of 2015 in the hotel and conference segments. Real Estate and Construction — Most District brokers indicated that home sales fell short of their plan for the period. Many contacts noted that home sales were flat or down slightly compared with a month earlier. Brokers continued to report modest home price appreciation. The majority of brokers indicated that inventory levels remained flat from the prior month's level and that buyer traffic was flat to down over the same period. Brokers indicated that they expect home sales to remain flat or increase slightly over the next three months. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 19 Incoming signals from District homebuilders were relatively unchanged since the last report. Contacts characterized construction activity as flat from the previous month and new home sales were flat to down slightly over the same period. Most builders indicated that the inventory of unsold homes was flat to slightly up compared with a month earlier. Modest home price appreciation continued to be reported. Builders' outlook for new home sales and construction activity over the next three months was fairly positive, with most indicating that they expect activity to be flat to slightly up. Commercial real estate brokers across the District continued to report improving demand, though they cautioned that the rate of improvement varied by metropolitan area, submarket, and property type. Commercial contractors noted continued strength in apartment construction and that the pace of nonresidential construction activity continued to increase modestly. The outlook among District commercial real estate contacts remains fairly optimistic. Manufacturing and Transportation —District manufacturers indicated that activity was solid, as the strong growth noted in the previous period continued. New orders and production remained at healthy levels, and contacts reported notable increases in employment. Supplier delivery times slowed and commodity prices increased modestly. Optimism among manufacturers rose notably since the last reporting period, with over half of contacts expecting productions levels to increase over the next three to six months. District transportation contacts reported slightly higher activity from late November through December compared with year earlier levels. Trucking and logistics contacts noted significant increases in demand; however, capacity constraints due to a lack of drivers continued to hinder growth. Railroad contacts reported double-digit increases in shipments of grain, petroleum products, metallic ores, and military, machinery and transportation equipment. However, total rail traffic was flat compared with the previous reporting period. Maritime shippers cited significant capital expenditures in vessel capacity, including barges and petroleum tankers, as well as increased investments in LNG-powered ships. District ports experienced significant growth in container traffic compared with the same period last year. The majority of transportation contacts expect higher growth in 2015. Banking and Finance — Credit conditions were largely unchanged from the previous reporting period. Contacts reported large businesses had easy access to credit; small businesses were experiencing small improvements in their ability to access credit. Loan demand increased among most lines of business. Loan pricing and structure remained competitive. Employment and Prices — Businesses reported that the reluctance to hire was waning somewhat in the face of continued increases in demand. In November, Sixth District states added 49,500 net jobs. Job gains were fairly widespread across sectors, though retail contributed the most jobs. The unemployment rate in the Sixth District declined 0.2 percentage point to 6.4 percent in November. Reports of high turnover rates were more prevalent since the previous report, with many firms offering improved benefits, notably health care, as an employee retention device. In addition, the conversion of part-time workers to full-time accelerated as businesses tried to meet increased product demand and Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 20 boost employee loyalty. Businesses continued to cite little input cost pressure and limited pricing power, with some notable exceptions in commercial construction, transportation, real estate, and food. The Atlanta Fed's December survey of business inflation expectations indicated that firms' year-ahead unit cost expectations were essentially unchanged at 1.9 percent. Contacts also expressed a slight shift in their assessment of labor cost pressures over the coming year with a growing number of firms reporting acceleration in compensation budgets for 2015. Some firms conveyed they were increasing starting pay or planning to move above minimum wage in an effort to attract and retain their workforce. Conversely, several employers also reported that where possible, they were holding down base pay and instead adding benefits or performance bonuses. Natural Resources and Agriculture — Supply of crude oil and natural gas continued to outpace demand, leading to high inventory levels across the Gulf Coast. Industry contacts in the energy sector reported that the downturn in the price of oil has influenced their outlook and strategic planning for 2015, including a heightened focus on cost management, more prudent investments, and faster, more efficient drilling techniques. Exploration and production firms shared plans to continue drilling operations across the Gulf Coast and in Louisiana in 2015, though they intend to approach projects more cautiously. The same goes for oil service companies in the region, which are evaluating cost reduction strategies if low energy prices are sustained. While the District experienced varying degrees of drought ranging from abnormally dry conditions to a few areas of severe drought, some areas of Alabama, Georgia, and the Florida panhandle saw some moderate improvement in drought conditions. Protein producers that rely on corn for feed reported improved margins because of continuing low corn prices. The most recent cotton and orange crop forecasts were slightly higher than last season's production. Source: The Summary of Commentary on Current Economic Conditions(The Beige Book) Florida Market Snapshot FLORIDA MARKET MSA SNAPSHOT A6A Population Office SF Industrial SF SF Home Sates Inc, agIgffiQ Seaport Median Age Vacancy Vacancy Median SP Inc. Domestic/Mtn Flights Tonnage... Orlantlo _ _ 2.225.]30 100.4 trillion 1]B Mllllon +6 4% Orlando lSrI Port Canerval 33.] 12.10% 9.50% X20% 8138 3.87 million - �Includes Orlantlo.Klssimree antl San/ortl Sabah Florida ,5,429.191 189 rr110on 319 n1111on +2].34 14arr1 Inn Port Miami 41.1 1].60% ].30% +21.4% 48/93 ].98 trillion 1 Fort Laudertlale InY1 Port Evervlades 31 —- 58/42 22.45 trillion •1 I i 54+40+Mlart,Fort a dertlale antl West Palm Beall Palm Beach Intl Port of Palm Beach 23/4 2 14 Milton Tamp Bay 870 588 271+11110+ Tanya rt Port Tanya Bari 414 142.50%n 940% +121% 'ro 63/t'2 r 34.9 trillion lodes Tarrpa,5[.Peterspur9 and Clearwater Jacksonvi ^" 1 384 824 62,4 trod 12,3 trilpon .21 1% lax Intl Almon Port M Jacksonville 3J8 1240°h 8.90% 13% 21/1 24.2 trillion • a+ F! Includes Baker.Gay,Duval and St Johns counties Source SFBJ Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 21 South Florida Regional Analysis Market Definition The Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area comprises the area generally known as the South Florida Region (South Florida) which comprises Miami-Dade, Broward and Palm Beach Counties. '''41,- -- 'voilt:--t.,-LA „..,,.. Florida 14146111k4;: _ .onuuae.0 .nn. Cade With 5,564,635 inhabitants as of the 2010 Census, the South Florida metropolitan area is the most populous in Florida, in the Southeastern United States and the eighth most populous in the United States. It is part of the South Florida region and is partially synonymous with the Gold Coast. The South Florida metropolitan area consists of three distinct metropolitan divisions, subdividing the region into three divisions according to the region's three counties: • Miami-Dade County, • Broward County, and • Palm Beach County. r i i MIAMI FORT LAUDERDALE PALM BEACH Metropolitan divisions include Miami, Fort Lauderdale and Palm Beach. The largest cities by population in the South Florida Region are as noted on the following table: Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 22 South Florida MSA Largest Cities CITY POPULATION(2012) COUNTY Miami 413,892 Miami-Dade Hialeah 231,941 Miami-Dade Fort Lauderdale 170,747 Broward Pembroke Pines 160,306 Broward Hollywood 145,236 Broward Miramar 128,729 Broward Coral Springs 125,287 Broward Miami Gardens 110,754 Miami-Dade Pompano Beach 102,984 Broward West Palm Beach 101,903 Palm Beach Current Trends Buoyed by strong job growth, a recovering housing market, rebounding tourism and increased construction activity, South Florida's economic recovery continues to gain momentum. According to recent statistics, the region added nearly 75,000 jobs year- over-year and unemployment figures continue to drop outpacing national averages. Although housing prices are still nearly 40% off peak, pricing in 2007 the residential housing market is clearly recovering. Driven by foreign buyers and investors, mainly from South America, housing sales are increasing and new housing product is being delivered. The hospitality market has also demonstrated signs of a robust recovery. Cruise and air travel is up year-over-year and the region is experiencing new hotel development for the first time since prior to the Great Recession. Gross regional economic output is also increasing. Other Items of Note: • Major transportation and infrastructure projects are planned or underway to improve the logistics of the region and therefore, enable it to more effectively compete globally. Major improvements are underway at region airports and seaports. • The Florida legislature is debating the matter of expanded gambling in the State of Florida. The current bill proposed includes two mega casinos in South Florida. • Foreign investment from South America and Europe continue to fuel a rapidly recovering luxury condominium market. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 23 Regional Location Map II F. 'i� Ill Nin lie Beach ' Ben, •x=hetchee ' ' `i + s:y�,�a + .Sixmiie r Wellingt `a,4Y a' s � . •u ;r: Ore= }, r m r:¢�s::;-; I , •� i' lair ki. 1 ,. - -' ... ',P' ��i 'r: ,'p,,:*:;.ice •., :•;�„r:. HH . c ,,, f Z a x. i ^1 } _ce%' af,. ;t S a Hilre iketana-1,� P in r 4 Lia, - 1 .. 4',_.—f.'n I is 3 % .. _ . . ... . . .. I ; '3:::•'',,:."4:71■•,V e-.■'.;,v,7r, - ,L. iiiiZj —6- ., .''' i A(.. ` -'"- f tli L- J ;'- ` _...::,,;,-..'4. ° - ® _ � ' �:: :, _. . =n y> - . broke `ublect Property.Ines o,L.Lt 7,..,„ca), Iiiv rui,A . , . , - .7:,,,..ft,- -, , . r , - .... F t_ , °pia-=h Oar - Irir-1 M-,pf--_ D. 'j D E ) ,y ....0 - -, Height -• 9 o i .. S - arania.. i l Leisur=CRY ,"--So a -°.. ead Alt i4 i.l..7,411 x.='4.14 ) s r; anal .ar, .rs �_ Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 24 Demographic Characteristics and Trends Due to its temperate weather and relatively low taxes, South Florida has long been a popular retirement destination. As a result, South Florida's median age of 40.8 years is two years older than that of Florida and over five years older than the national average. Overall South Florida's level of affluence and educational attainment is consistent with national averages. Within the South Florida market however, there are notable differences between counties with regard to income and educational attainment levels with Palm Beach County having the area's highest levels and Miami-Dade County having the lowest. Overall, nearly 30% of the region's population holds a Bachelor's degree or better and approximately 18% of its households have annual incomes of greater than $100,000. Other items of note: • The South Florida population is older than state and national averages. Palm Beach County is the oldest with a median age of 43.8 years. Miami-Dade and Broward Counties' median ages are 38.8 years and 39.9 years, respectively. Florida has a median age of 38.7 years compared to the national average of 35.3 years. • According to the US Census Bureau South Florida's median household income tumbled more than 14% in five years, although the decline appears to be slowing. In 2011, the median household income fell to $48,880 in Broward County; $40,552 in Miami-Dade County; and $48,953 in Palm Beach County. The current median family income for Florida is $54,777. Real median family income peaked in 2007 at $63,084 and is now $8,307 (13.17%) lower. • The Census Bureau found that the number of South Floridians living below the poverty level has also increased over the past five years. In 2007, about 8.5% of families in Broward County and 6.7% of families in Palm Beach County were in poverty. Last year, 11.1% of Broward families and 11.6% of Palm Beach County families were in poverty. Approximately 15.6% of Miami-Dade residents live below the poverty level versus 15.6% for overall Florida. Demographic Characteristics —South Florida vs. United States Characteristic South Florida U.S. Median Age (years) 40.0 37.0 Average Annual Household Income $64,767 $69,636 Median Annual HH Income $43,311 $49,231 by Annual Income Level: < $25,000 29,4% 25.4% $25,000 to$49,999 26.8% 25.3% $50,000 to$74,999 16.9% 18.1% $75,000 to$99,999 10.2% 11.7% $100,000 plus 16.8% 19.5% Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 25 Characteristic South Florida U.S. Education breakdown: < High School 17.3% 14.6% High School Graduate 27.6% 28.4% College < Bachelor Degree 26.8% 28.9% Bachelor Degree 17.9% 17.7% Advanced Degree 10.4% 10.4% Source: Claritas, Inc. Population According to the U.S. Census Bureau, between April 2010 and April 2013 South Florida's population increased 2.68%, adding nearly 150,000 residents. At just under 5.8 million residents, the MSA stands as the eighth largest metropolitan area in the nation and accounts for approximately 30% of the state's population. During that same period Florida's population increased by 458,000 residents for a total growth rate of 2.44% which ranks third in the nation. The national average was 1.7%. At just under 19.3 million residents, Florida remains the fourth largest state and is on track to break the 20 million mark during 2016, becoming the third most populous state sometime before then — surpassing New York. Two sources contributing to Florida's population growth during that period was the net migration, which accounted for 70%, and the births over deaths accounted for 30%. South Florida Population County 1990 U.S. 2000 U.S. 2010 U.S. 2013 U.S. %Change Census Census Census Census 2000-2013 Miami-Dade 1,937,194 2,253,786 2,496,457 2,583,375 14.6% Broward 1,255,531 1,623,016 1,748,066 1,784,715 10.0% Palm Beach 863,503 1,131,190 1,320,134 1,345,612 19.0% South Florida 4,056,228 5,007,992 5,564,635 5,713,702 14.1% Florida 12,938,071 15,982,813 18,810,310 19,259,543 20.5% Source: Florida Research and Economic Database(BEBR) Miami-Dade County is the most populous among the South Florida counties, with just over 45% of the region's population, followed by Broward and Palm Beach Counties with 31.2 and 23.6%, respectively. Population projections are depicted in the following table. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 26 Population Projections by County—South Florida MSA—2015—2025 Compound Compound Population 04/2014 2020 2025 Annual Annual (000's) Growth Growth Rate 12-20 Rate 12-25 United States 316,129.0 333,896.0 346,407.0 0.9% 0.80% South Florida 5,828.4 6,077.2 6,339.8 1.0% 0.9% Miami-Dade 2,617.2 2,761.1 2,892.4 1.1% 1.1% Count Broward 1,839.0 1,850.8 1,901.5 0.6% 0.6% Count Palm Beach 1,372.2 1,465.3 1,549.9 1.3% 1.2% Count Source: Florida Research and Economic Database(BEBR) In recent years, the population growth in the region has been slower than the statewide average, as South Florida developed into an established population area compared to smaller communities. In addition, the region is bordered to the east by the Atlantic Ocean and the west by the environmentally protected Everglades, which limits the land area that can be developed in this metropolitan market. This is particularly evident in Broward County, where slower growth during the last decade has been caused by the diminishing supply of developable land in that market. Other items of note: • Broward County had 1.84 million residents, compared with 1.75 million in 2010. The biggest driver was international immigration, which accounted for 39,565 new residents. Domestic migration added 25,965 while natural population increase (the number of births minus deaths) boosted it by 20,026. • Palm Beach County grew to 1.37 million people, vs. 1.32 million in 2010. The biggest increase came from domestic migration (25,662), followed by international immigration (20,237)and natural population increase(1,517). • Miami-Dade County had 2.62 million residents, compared with 2.5 million in 2010. It actually had a net loss of 19,877 residents who moved to other parts of the United States. However, that was more than replenished by 93,196 arrivals from overseas. Natural growth made up 36,778. • When calculating international migration, the Census Bureau includes U.S. citizens, members of the armed forces and foreign-born people who move between the United States, Puerto Rico and other countries. • Population growth is forecast to continue strengthening as Florida remains one of the fastest growing states in the country. In the near-term, growth is expected to average 1.3% between 2013 and 2015 — and then continue its recovery in the future, averaging 1.4% between 2015 and 2020. Nationally, average annual growth will be about 0.74% between 2013 and 2030. The future will be different from the past; Florida's long-term growth rate between 1970 and 1995 was over 3%. Experts predict that the state will add Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 27 over 2.5 million people from 2010 to 2020, an additional 2.6 million people from 2020 to 2030 and 2.2 million more residents from 2030 to 2040. Labor Market Employment Distribution — South Florida represents nearly one-third of the total labor force in the State of Florida, which is primarily a service-based economy. Service jobs represent more than 35% of non-agricultural employment. Trade is the most important industry in South Florida followed by tourism. Employment distribution in the Miami MSA is presented below. Employment Industries—South Florida Region Industry Percentage Trade, Transportation & Utilities 22.5% Education and Health Services 16.0% Professional& Business Services 15.5% Government 13.9% Leisure& Hospitality 12.0% Financial Activities 6.8% Other Services 4.4% Construction 4.0% Manufacturing 3.2% Information 1.8% Natural Resources & Mining < 0.1% Source: Bureau of Labor Statistics, Southeastern Regional Office, Dec. 2012 Major Employers — The Miami Area MSA is home to four Fortune 500 companies — World Fuel Services (74), AutoNation (177), Office Depot (253) and Ryder System (404) and a number of Fortune 1000 companies. The regions employers include national and international corporations that encompass a variety of industries including retail, bio- technology and health care. The ten largest private sector employers in the region are ranked as follows: Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 28 South Florida MSA- Largest Employers Rank Employer Employees Product/Service 1 Publix Super Markets 36,000 Super Market 2 Tenet Healthcare Corp. 18,000 Health Care 3 JPMorgan Chase 17,000 Financial Services 4 University of Miami 13,822 Education 5 Jackson Health System 10,010 Health Care 6 American Airlines 9,000 Airline 7 Broward Health 8,190 Health Care 8 Miami Dade County 6,511 Education 9 Wells Fargo, N.A. 5,300 Financial Services 10 American Express 4,318 Financial Services _ Source: South Florida Business Journal, Book of Lists-January 2014 Employment - Total nonfarm employment for the Miami-Fort Lauderdale-Pompano Beach Metropolitan Statistical Area stood at 2,391,700 in June 2014, an increase of 70,300 from a year ago, the U.S. Bureau of Labor Statistics reported today. Miami's rate of job growth, at 3.0 percent, exceeded the national increase of 1.9 percent from June 2013 to June 2014. Over-the- year employment gains in the local area extended back to August 2010. Chart 1.Total nonfarm employment,over-the-year net change in the Miami metropolitan area and its divisions, June 2009-June 2014 Net change(in thousands) 90.0 30.4 — .. .1li111111IIH1I I�I'll1l111111l. .. ,II ?1 1 ,, q -30.4 3 I West Palm Beach MetroportanDivision -60.0 s>•Fort Laudeniale M etropoltan Division -90.0 — Miami Metropo @an Division -120.0 — —-150.0 -- —M iami M etropoitan Statistical Area -180.0 Jun-09 Deo-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Source:U.S.Bureau of Labor Statistics. The Miami area is made up of three metropolitan divisions - separately identifiable employment centers within the larger metropolitan area. All three divisions gained jobs over the year. Miami-Miami Beach-Kendall, the largest of the three divisions with 45 percent of the area's employment, added 29,600 jobs from June a year ago. The Fort Lauderdale-Pompano Beach-Deerfield Beach division which accounted for 32 percent of Miami's workforce added 24,600 jobs. The West Palm Beach-Boca Raton-Boynton Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 29 Beach division, with 23 percent of the workforce, added 16,100 jobs over the 12-month period. Industry employment in the Miami metropolitan area, the trade, transportation, and utilities supersector experienced the largest employment increase, up 15,200 or 2.8 percent from June a year ago. This iob growth was concentrated in the Fort Lauderdale and Miami metropolitan divisions. Nationwide, employment in this industry grew 2.3 percent over the 12-month period. (See Chart 2) Professional and business services had the second largest over-the-year increase in jobs locally in June 2014, growing by 14,400 or 3.9 percent. The expansion of professional and business services jobs in June 2014 was spread across the three metropolitan divisions. Nationwide, professional and business services increased 3.5 percent over the year. Leisure and hospitality added 12,000 jobs in June 2014, an increase of 4.2 percent over the year, with the three metropolitan divisions gaining jobs. Nationally, employment in this industry grew 2.8 percent since June 2013. Two other supersectors gained at least 7,000 jobs over the year in the local area: construction (9,800); and education and health services (7,100). Both supersectors recorded faster rates of job growth locally than their respective national rates. Four supersectors recorded over-the-year employment gains ranging from 3,900 to 1,600 in June 2014. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 30 Chart 2.Total nonfarm and supersector employment,over-the-year percent change, United States and the Miami metropolitan area,June 2014 Percent Change 24.0 •U.S. •Miami 20.0 20.0 16.0 12.0 10.6 8.0 - - - 5.0 4.0 1.9 30 2.8 3.53.92.842 3.2 3.2 2.3 1.- 921 24 2.1 0.0 , 0.$ 0.T 0.7 1.1 1.3 -1.0 -4.0 ncrea Source:U.S.Bureau of Labor Statistics. Other Current Regional Employment Trends and Considerations: • The state added 206,900 jobs in October over the number a year ago. All industry sectors added jobs except information, which includes Internet service providers and data processing. • Florida saw more job-quitters in October: 8.8 percent of the total unemployed left jobs, up from 8.5 percent a month earlier, while 27.2 percent re-entered the market, up from 26.7 percent. And 11.7 percent were new job-seekers, up from 11.1 percent. • The state still has a large number of"under-employed" workers - people who are over- qualified for their jobs but took them for economic reasons. But that should improve as employers begin to hire at a faster pace. • Despite major strides, the state's construction industry is still 226,100 jobs under its pre- recession level and 277,300 jobs below the peak in 2006. • Florida's job recovery has been broad-based, with strong growth in education services and tourism sectors. Even with retail and tourism jobs taken out of the mix, Florida is outpacing the nation on job growth. • In South Florida, future job growth will come mostly from business and professional services, a wide category that includes legal services, management, and consulting, engineering and technology-related jobs. • Movement of goods is becoming more important in the state, with most ports expanding. Transportation and warehouse employment is up 3.8 percent in Florida. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 31 • Florida has made great strides in improving its competitive position compared with other states, attracting new and expanding businesses. Expansions in aviation, life sciences, higher education and technology are helping to pull additional investment and new businesses and jobs to the state. • The development of All aboard Florida, which will bring high-speed trains from Orlando to West Palm Beach and Fort Lauderdale, promises to strength urban development. Unemployment-According to the most recent released report from the Bureau of Labor Statistics, Florida's seasonally adjusted unemployment rate was 6.0% in October, 2014 - a decrease from the December, 2013 rate of 6.2%. Southeastern Florida-Unemployment Rate Trends County Workforce Unemployment Unemployment Unemployment (9/2014) Rate(9/2014) Rate(9/2013) Rate(10/2010) Miami-Dade 1,297,200 6.8% 8.1% 14.4% Broward 1,081,200 5.2% 5.9% 10.7% Palm Beach 686,600 6.0% 7.4% 12.5% State of Florida 9,633,900 6.1% 6.7% 12.4% U.S. 155,613,000 5.7% 7.0% 9.3% Source: BLS Items of Note: • South Florida unemployment dropped from 7.2%to 6.1% as of September, 2014. • Miami-Dade's unemployment dropped from 8.1% from 6.8%, according to the department's seasonally adjusted rates. • Following statewide trends, Broward County's unemployment dropped from 5.9% as of September, 2013 to 5.2% in September, 2014. • During that time, unemployment also dropped in Palm Beach County - to 7.4% from 6.0%. • Nationwide, unemployment rates improved from 7.0% to 5.7% for the year ending September, 2013. Miami Area Economic Conditions Compensation Costs for Wages and Salaries - Total compensation costs for private industry workers increased 1.2 percent in the Miami-Fort Lauderdale-Pompano Beach, Florida metropolitan area for the year ended September 2014, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Janet S. Rankin noted that one year ago, Miami experienced an annual gain of 2.4 percent in compensation costs. Locally, wages and salaries, the largest component of compensation costs, increased at a 1.7 percent pace for the 12-month period ended September 2014. Nationwide, total compensation costs and wages and salaries each increased 2.3 percent from September 2013 to September 2014. (See Chart 1 and Table 1.) Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 32 Chart I.Twelve-month percent changes in the Employment Cost Index for total compensation and for wages and salaries,private industry workers,United States and the Miami area,not seasonally adjusted,September2012 to September2014 Percent Percent change Change 3.0 3.0 25 2.5 2.0 }. • � 2.0 ••/• — til 1 • •• 1.5 / • 1.5 1.0 r 1.0 U nited States total compensation U nited States vages and salaries 0.5 0.5 Miami wages and salaries •M iami total compensation 0.0 Sep.I Dec 1M ar.I Jun.I Sep.I Dec I Mar.l Jun.I Sep. 0.0 Sep.I Dec I Mar.I Jun.I Sep.I Dec Mar.I Jun.!Sep. 2012 2013 2014 2012 2013 2014 Source:U.S.Bureau of Labor Statistics. Miami is 1 of 15 metropolitan areas in the United States and 1 of 5 areas in the South region of the country for which locality compensation cost data are now available. Among these 15 largest areas, over-the year percentage changes in the cost of compensation ranged from 3.9 percent in San Jose to 0.9 percent in Detroit in September 2014; for wages and salaries, San Jose registered the largest increase (3.9 percent) while Detroit registered the smallest (0.1 percent). (See Chart 2.) The annual increase in compensation costs in Miami was 1.2 percent in September 2014 compared to advances that ranged from 3.4 to 1.1 percent in the four other metropolitan areas in the South (Atlanta, Dallas, Houston, and Washington). Miami's 1.7 percent gain in wages and salaries compared to annual increases in the other four southern localities that ranged from 3.5 to 1.0 percent. (See Table 2.) Locality compensation costs are part of the national Employment Cost Index (ECI), which measures quarterly changes in compensation costs, which include wages, salaries and employer costs for employee benefits. In addition to the 15 locality estimates provided in this release, ECI data for the nation, four geographical regions, and nine geographical divisions are available. (Geographical definitions for the metropolitan areas mentioned in this release are included in the Technical Note.) Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 33 Chart 2.Percent change in the Employment Cost Index for total compensation and for wages and salaries, private industnr workers,United States and localities, not seasonally adjusted,September 2013 to September 4 12anonth percent change 4.5 n Iota I compensation 3,9 3.9 4.0 3.5 3.3 3.4 3S •Wages and salaries 3.1 3.0 2.6 2.52.6 2.6 2.5 2.5 2.3 2.3 - -- ::r I 21 2.0 1.7 T 1.5 1.51 5 1.4 1.1 1.4 12 iz 1.1 €k iii ; 1.11 0.9 44 i ' ; x\`.64- �, ' c o.° 61 t �S`�, �e1°°mac?°.4.1' ads . °�`° c, P` a°j 4. c�`4, %s X4 °4 4 0 4 �p� e� �e 0 ems" ��' `� Q' " 40 Pa° c c° h .cA Source U.S.Bureau of Labor Statistics. ÷ e Consumer Price Index-The Consumer Price Index for All Urban Consumers (CPI-U) for Miami increased 0.4 percent over the two months, the U.S. Bureau of Labor Statistics reported in late November, 2014. All items, less food and energy index, increased 1.0 percent, reflecting higher prices for shelter, apparel, and other goods and services. The energy index declined 3.5 percent during the two-month pricing period, while the food index was unchanged. Over the last 12 months, the CPI-U rose 2.2 percent with annual increases registered in several categories, notably shelter and food. The index for all items less food and energy rose 2.5 percent over the year. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 34 Chart 1.12-month percent change in CPI for All Urban Consumers (CPI-U), Miami-Fort Lauderdale,October 2011-October 2014 Percentchange 5 —F—All items All items less bod and energy 4 -- -- — — 3 — — — \00/9 Q Oci'11 Jan'12 Apr12 Jul'12 Oct12 Jan'13 Apr13 Jul'13 Ocf13 Jan'14 Apr14 Jul'14 Oct14 Source:U.S.Bureau of Labor Statistics. Food prices were unchanged during the September-October pricing period. A 0.4 percent decrease in prices for food at home was largely offset by a 0.7 percent increase in prices for food away from home. From October 2013 to October 2014, the food index increased 2.5 percent, as prices rose for both foods at home (2.3 percent) and food away from home (3.1 percent). The energy index decreased 3.5 percent during the two-month pricing period, led by a 5.9 percent decline in motor fuel prices. Prices also decreased for electricity (-0.2 percent) and utility (piped) gas service (-0.8 percent). Over the year, the energy index declined 1.0 percent as prices decreased for motor fuel (-5.3 percent). Prices increased over the year for both electricity (5.2 percent), and utility (piped) gas service (4.6 percent). The index for all items less food and energy rose 1.0 percent over the two months. Among the components of the index, increases were recorded for shelter (0.6 percent), apparel (6.7 percent), and other goods and services (4.9 percent). Price advances were noted for women's outerwear and girl's apparel. Over the year, the index for all items less food and energy advanced 2.5 percent, reflecting higher prices for several indexes, most notably shelter (3.3 percent). Housing Market The housing market in South Florida still has plenty of room to recover. However, according to a recent report published by Freddie Mac, it is one of the most improved metro areas in the nation. The Multi-Indicator Market Index reports each month to measure four key factors in local housing markets: home purchase applications; Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 35 affordability; mortgage delinquencies; and employment. A score below 80 shows weakness, according to Freddie. A perfect score is 100. In the most recent study, South Florida ranked 27th out of the top 50 metros surveyed, improving two spots from the prior month and 14 spots from a year ago. The August Multi-Indicator Market Index showed South Florida — including Miami-Dade, Broward and Palm Beach counties — scored a 69.2, an increase of 11.43 percent from a year earlier. A year ago, South Florida's index score was 62.1. The area hit bottom in October 2010 at 42.2. Only Las Vegas (21.53 percent), Chicago (13.98) and Riverside, Calif., (11.99) had higher rates of improvement. Orlando was fifth at 8.70 percent. Housing trends in the South Florida market are as follows: • According to real estate agents, low mortgage interest rates and improving job prospects are bringing more traditional home-buyers to the table, even as many investors have pulled back amid higher prices. More South Florida home-buyers took the plunge in September, buoying sales of single-family homes and condominiums. • Properties are sitting on the market a bit longer than they did a year ago: In September, Broward condos sold in a median period of 50 days, up from 36 days; single-family homes sold in a median period of 38 days, up from 28 days. Miami-Dade residences also took longer to find a buyer. • Past-due mortgage payments and purchase applications remain weak across South Florida, but employment and affordability fall into the acceptable range, according to Freddie Mac. • Experts note that delinquencies have been hampered by the South Florida housing market recovery, and while those levels are still high, they are coming down sharply which is driving the big market movement in Miami. • Market followers insist this is not the start of another housing free fall. Rather, it is a necessary slowdown to prevent a future bubble. Highlights by County Miami-Dade County– Sales of existing single-family homes in Miami-Dade County rose 5 percent in September from a year earlier, with 1,166 closings. Existing condo sales also increased 5 percent year over year, totaling 1,425 closings, according to the Miami Association of Realtors. The median price of a single-family home in Miami-Dade rose 11 percent to $250,000 in September from a year earlier. For condos, the median rose 7 percent to $195,000 from Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 36 a year earlier. Compared with August, the median price for a single-family home was flat in September while the condo median rose 7 percent month to month. In September, Miami-Dade's inventory of single-family homes rose 20 percent to 6,347 units while the inventory of existing condos swelled 24 percent to 11,133. For existing Miami-Dade condominiums, which amounted to 8.1 months of supply — tipping the market in favor of buyers. Experts consider a six-month supply to be a balanced market between buyers and sellers, with more than that favoring buyers and a tighter supply favoring sellers. According to Metro Study, Miami-Dade County lost its housing start lead to Palm Beach County in 2Q14, with an annual starts pace of 2,242, down 8 percent from the previous quarter and off 7 percent year over year. However, quarterly starts rebounded 42 percent from the previous quarter. Closings are up 26 percent from a year ago. Finished, vacant inventory stands at 2.4 months. Broward County — In Broward, sales volume of both single-family homes and condos rose by 8 percent in September from a year earlier. During September, 1,306 single- family home sales and 1,353 condo sales were completed. The median price of a single-family home in Broward County was $270,000 in September, flat with a year earlier, but the median for condos jumped 26 percent to $132,000. In Broward, the inventory of single-family homes listed for sale in September rose 35 percent to 6,391 units, while the inventory of condos increased 27 percent to 8,157 units. That amounted to a six-month supply of condos and a 5.1-month supply of single-family homes. Broward County housing starts rose 5 percent over the previous quarter. The annual starts pace remains flat at 1,089, due to land constraints in the county. Finished, vacant inventory drops further to 1.4 months. Palm Beach County— Market conditions have stabilized in Palm Beach County as home prices fell in August, the first drop in 27 months. The median home price totaled $270,000, down 2 percent from a year earlier according to the Realtors Association of the Palm Beaches. In better news, while the median price dropped last month, sales remained steady. A total of 1,500 single-family homes closed, a 16 percent increase from August 2013. Results also were mixed in the condominium market too. Palm Beach County's median condo price rose 13 percent in August to $132,250, while sales fell 8 percent. The Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 37 median means half of the properties sold for more and half for less. It does not reflect the values of all homes and condos countywide. At the end of August, 7,187 single-family homes were listed for sale in Palm Beach County, up 29 percent from a year ago, according to the Realtor Board data. Housing starts in Palm Beach County are up 6 percent from the previous quarter and are up 12 percent year over year. Closings were off 8 percent from the previous quarter, but are up 7 percent annually. Finished, vacant inventory remains low at 1.4 months of supply. Overall in Palm Beach County, attractive, properly priced homes remain in high demand, and listings in some areas are scarce. But buyers generally don't feel the same urgency, and properties are sitting on the market longer than they did a year ago. Housing Summary — The pick-up in South Florida home and condo sales in September mirrors stronger sales across Florida and the nation. The Florida Association of Realtors reported single-family home sales rose 14 percent in September from a year earlier, and condo sales inched up 2 percent year over year. The National Association of Realtors said all major regions of the country except the Midwest posted month-to-month sales gains in September, boosting sales to their highest pace of the year, albeit still down 1.7 percent from last September. Household Formation Despite the rebound in the housing market, the lack of formation of new households remains a concern in the South Florida MSA. Experts look to three primary reasons holding new household formations down. 1. Many younger households are simply saddled with large amounts of debt and weak incomes from the Great Recession and lower average salaries. 2. A larger proportion of the population lives at home with their parents. 3. The labor market for younger Americans, even college graduates is not as positive as to justify current and projected near term home prices. During the real estate crisis, housing formation dropped by over half in the region. In 2012, household formation started to recover and slow gains have been made during 2013. The following graph compares historical and projected growth trends in household formation between South Florida and the U.S. overall. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 38 Annualized Population Growth by County—South Florida—2002 - 2012 Compound Compound Population 2002 2012 Forecast Forecast Annual Annual (0000's) 2013 2017 Growth Growth Rate 02-12 Rate 13-17 United States 287,625.2 313,914.0 316,896.7 329,170.11 .09% 1.0% South Florida 5,197.2 5,762.7 5,822.3 6,259.1 1.0% 1.8% Miami-Dade 2,135.7 2,591.0 2,607.4 2,753.9 1.1% 1.4% Count Broward 1,690.1 1,815.1 1,839.4 1,982.8 0.7% 1.9% Coun Palm Beach 1,191.3 1,356.5 1,375.5 1,522.4 1.3% 2.6% Coun Source: Moody's Analytics, Cushman Wakefield Valuation&Advisory Between 2002 and 2012, household formation grew at an average of 0.8% per year, slightly slower than the national average. Through 2017, household formation is projected to increase 2.0% per year, ahead of the projected 1.3% annual growth rate of the national average. The recovery of sustained household formation is a concern for the region. South Florida Banking Lending and profits were strong at local banks in the third quarter of 2014. The 59 institutions — of which 57 are currently active — earned a combined net income of $152 million in the third quarter up from $138.4 million in the first quarter. Their combined net interest margin fell 3 basis points to 3.74 percent. Loans grew by $1.5 billion which is slower than the $2.1 billion reported in the second quarter. The combined noncurrent loan ratio declined to 1.80 percent on September 30 from 2.08 percent in the second quarter. Other South Florida banking/lending trends are noted as follows: • Commercial real estate lending is expanding. In the fourth quarter alone, there was $587 million in loan growth with only 2.03% of non-recurrent loans. • Commercial and industrial loan volume decreased by $31 million with only 1.2% of non- recurrent loans. • Construction and land development loan growth totaled $36.5 million in the third quarter, 2014 with 6.12% being non-recurrent down from 7.99%. • Multi-family lending totaled $145 million down from $205 million in the first quarter with only 0.83% of non-recurrent loans. • Miami has been approved for a "cash-for-visa" program that may help lure cash into the Miami economy. The designation essentially allows the city to assist foreign nationals who want to participate in the EB-5 visa program. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 39 Conclusion Market data strongly suggests that the South Florida economy is on a sustainable path to recovery. Key economic variables such as population growth, employment growth and housing have all shown improvement. Key ties to South America and Europe have helped fuel a housing market rebound and strong ties to Latin America and the Caribbean remain a key driving force in the expansion in trade in the region. Tourism has rebounded and there is expansion in the hospitality sector. Investments in infrastructure will also benefit the region coincident with the opening of the Panama Canal. Led by Miami Dade County South Florida commercial real estate has also nearly fully recovered with all property types now in play. While there is widespread residential condominium development most are being funded by buyers versus lenders and speculation has been very limited. It remains to be seen how the current drop in oil prices will shake out and the Federal Reserve has warned of a slight interest rate increase in mid-2015. However, most analysts agree that South Florida is in the middle innings of the current recovery with two to three solid years of growth ahead. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 40 Area/Neighborhood Description Location — The subject property is located within the city of Sunny Isles Beach, which was newly incorporated in the late 1990s after residents petitioned for this change from the county government. The city's current population is estimated to be 21,720, with a location wholly along the county's barrier island between the Atlantic Ocean and the Intracoastal Waterway, north of Haulover Beach State Park and south of the Town of Golden Beach, in northeastern Miami-Dade County. Access — Collins Avenue (State Road A1A) is the primary access roadway along this narrow barrier island, running north/south with four to six lanes through Sunny Isles Beach. The community is accessible from the mainland at 163rd Street Causeway (Sunny Isles Beach Boulevard/State Road 826) and William Lehman Causeway (at 191st Street). Both causeways run westward over the Intracoastal Waterway to U.S. Highway 1 (Biscayne Boulevard), the primary north/south commercial artery through waterfront neighborhoods on the mainland across the Intracoastal Waterway. Each causeway is high enough that drawbridges are unnecessary, with flyover lanes for northbound traffic avoiding busy intersections along Collins Avenue. Both provide primary access to regional shopping areas and the nearest hospital along Biscayne Boulevard in Aventura, and to schools in North Miami Beach. Description of Uses — Developed since the early 1950s, Sunny Isles Beach became a quieter, less-expense vacation alternative to Miami Beach to the south. In response to demand, low-rise motels were developed along the oceanfront in this area through the early 1970s. By that time, some high-rise condominium development occurred, particularly along the Intracoastal Waterway, augmented by supporting retail uses and some small areas of single family homes. With the exception of a few infill sites, this neighborhood was fully built-out and stabilized by the mid-1970s. Currently, the neighborhood is dominated by high-rise residential towers along the oceanfront and Intracoastal Waterway, with some older low-rise motels and pockets of single family homes. Supporting commercial uses, in the form of strip and neighborhood retail centers, front along the west side of Collins Avenue throughout Sunny Isles Beach. The popularity of nearby Aventura as an upscale enclave of high-rise residential projects began to spill over into Sunny Isles Beach across the Intracoastal Waterway. This activity gained momentum by the mid-1990s, and several of the older motel properties along the oceanfront were purchased for re-development as high-rise luxury condominiums. The pricing structure of these units typically ranges from $200,000 to Clobus, McLemore 8 Duke, Inc. PRESENTATION OF DATA 41 over $1,000,000, with some luxury penthouse units carrying price tags of more than $10.0 million. Summary and Conclusion —The subject property is located in the northeastern corner of Miami-Dade County, midway between Miami and Fort Lauderdale and within the city of Sunny Isles Beach. The subject neighborhood experienced significant re-development activity from 1997 through 2006, after a period of stabilization occurred following its build-out in the 1970s. Many older low-rise motel properties along the oceanfront were torn down for re-development into new, luxury high-rise condominiums and condo/hotels. Many of these new projects featured unit pricing from around $250,000 to over $10.0 million for super-luxury and/or penthouse units. The community also incorporated during this period, in order to gain greater local control over government and zoning matters. Supporting retail uses are found along Collins Avenue throughout Sunny Isles Beach, with good accessibility to other supporting uses on the mainland via causeways at 163rd Street and William Lehman Causeway. Over the long term, outlook for this oceanfront neighborhood is considered to be positive for well-conceived and well-located residential and commercial properties, as the underlying economy continues to recover from previous recessionary conditions which should be assisted by the ongoing recovery in the housing market. Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 42 Neighborhood Location Map paMb-+;161;110111C7'" CI MI am rte " : —�;I Is <• 'ig l f : ,^'— ,; aps' `s,n., IL* itAillgil .....--- , .„I . -- 1.7 it Kt -tN, "4.A.A.z4V- ''''..,';'?1,,,,1 K , (-:. - 4,. ri.,,, . t ri.'1.44-141-,.."- 44,A44:-i gi �l�i I I 4� ' 'a s 'I'� .*P �� 1` . ,....o-1.. '-'.7„` 'it,`,.. . i x� '14 gyp, = � -- =,' r c ; � NE + ' ,i i� \ A > E188th St 't;,T,__,.• A __--- • 1 t/,/?......T -..-...-iier,,,,,,kork.*At-,.4 • u a Subject qty t r`, � R : 0 �� r 4, 1 1 1' n._� , ;,r ..;.' A. 1 sar �.x s „II `sue r � {_ � ti r A i S Sa1: 1 " "w - f ,jjtrA -i ;, • l ''t 7 P Toth �_ k � � e '` .° 5'fit *��' .z , "-,,7 �,. mull ifr i+e,.;,,,,,,,I. ,, :,. ,,,,:‘,„,, .16L 4, .c ,___:._,,r-,4=—_----,7",,,--....--:--,._iie,---:' gticlAttrke.'741;,,iiitti,:',,-;:,:ii;,Iffri.../1 It, ', i' Isle s 42 NM.._... ....,-.,.;: 1:**:\ ' ';1:1',.;;;;:—7 h 70 7‘:-.>,di,":i; ''' V.',..4""1"y*Ip____.- ..,,, ,.,'':":-:- .7i:z;4'...;?''., :14, --;',:::_-%:.r......, illilliiiihir- 909 ` -I � � '.' ' Areal. -ice ��•`. Clobus, McLemore & Duke, Inc. MIMMINM PRESENTATION OF DATA 43 Site Description Physical Characteristics Site Area 44,745 Square Feet (1.027 Acres) Source: Boundary survey conducted by Calvin, Giordano & Associates, Inc., dated June 9, 2004 Shape Generally rectangular Topography Level near street grade Street Frontage Collins Avenue (SR A-1-A) to the east; Atlantic Boulevard to the west Zoning Classification B-1, Neighborhood Business District; BD, Business Overlay District Zoning Authority City of Sunny Isles Beach Flood Zone "AE" Flood Map Panel Number 120688-0153L; dated 9/11/2009 Census Tract 0001.23 Adjacent Land Uses— North Retail Center Adjacent Land Uses— South Sunny Isles Beach Government Center (City Hall) Adjacent Land Uses— East Multi-family (Luxury High-Rise Condos) Adjacent Land Uses—West Multi-family (Low-Rise Condos) Comparative Analysis of Site Evaluation/Rating Vehicular Access The subject site possesses ingress/egress points along Collins Avenue and Atlantic Boulevard. Vehicular Exposure/Visibility The site possesses good exposure and visibility from its adjacent roadways Drainage Appears adequate Utilities Provider Water, Sewer, Trash City of Sunny Isles Beach Electricity Florida, Power& Light Telephone AT&T Other Easements No detrimental easements observed Environmental Conditions None noted Encroachments None noted Deed Restrictions None noted Reciprocal Parking Agreements None noted Common Ingress/Egress None noted Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 44 Boundary Survey 3171 i ;I:, ___ r -.•.),,, ,,,„,;- i 9 .._,_ '3 +.4•T''-.... ''.:-;4-7.-,-:1----'2 , j• ^ « 7!i ; 1 i: , --; t•,$ r;•. 31!, f7,21, 4::-1.: '-i•-4.':.-1; '1..:;:.; = :. •• :E ;•• 3, F.,-%'il;.; ,; .. ..,-; k • : t.4 ,•,' 8 •T.r. ::.---d-:.'7- ''g -I z..i. f;!• Yfc." ,:. . 2 1.-' ti .!! ,:t ,,' .7 , .2,. z.;•.? al.ki0 3r33,y3t3 - ■:''''); «;'3'4 . ::::'-',..',I• II! Sci' 1,-• '.t i:,. . •:ii. i I I -- \"1 a c i — .:,'N".• :.;.,"; . s- -..) ir 1 .., r . z- rd I ——-- --— , .._ ' - PW AWRAV . .,,-- ...........,..„ ....g.ir-1-,..... ...,.."ce i „ 1 ... . . - ,,,,,,,:”.,.,...„., / / . . . . .... ,.... f ; I, U •! LI 43., _--.. - .,.,-. 'I- 5. "! 1 d /WI'ti. .kil:k3' Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 45 Improvement Description The subject property is a well located office development site in affluent Sunny Isles Beach. The likely purchasers of the site would be knowledgeable investor/developers who are familiar with the primary market area and the components that drive demand for office space in the South Florida market. Market Participants/Most Probable Purchaser The subject site possess entitlements for an office development In order to estimate the market value of the subject property, valuation procedures, which best reflect the typical investment criteria and motivations of such purchasers have been utilized. Marketability (SWOT Analysis) In order to determine the marketability of the subject property, a SWOT analysis has been undertaken. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are internal to the subject and deal with what a property can and cannot control. Opportunities and Threats are external forces that cannot be controlled directly by the subject but the subject can adapt to external factors. Factors serving to affect the desirability and marketability of the subject include: Strengths • Prime location in Sunny Isles Beach o Frontage along Collins Avenue o Adjacent to Sunny Isles Beach Government Center o Excellent walkability with proximity to retail, residential and medical uses • Entitlements in place for a 136,250-square foot office tower with structured parking garage and ground floor retail Weaknesses • Narrow site could limit some development possibilities Opportunities • Pent-up demand for office space in the submarket • Minimal new office development over the past 10 years • Diminishing supply of developable land in the area and fragmented ownership of smaller sites provide significant barriers to entry for other users in the market Threats • Rising interest rates could diminish purchasing power • Given Florida's (especially Miami) dependence on foreign investment the recent decrease in oil prices is expected to slow economic growth in petroleum producing Clobus, McLemore & Duke, Inc. PRESENTATION OF DATA 46 regions ranging from Russia to Africa to Latin America which in turn could limit further investment in real estate Exposure Time Exposure time is a historical event, which, according to the definition of Market Value, precedes the effective date of the appraisal. Based upon information compiled during our research and investigation and interviews with market participants, we believe a reasonable exposure time for the subject to be between three and nine months. Therefore, the market value estimate set forth in this report represents our estimate of value, as of the appraisal date, based upon this precedent exposure to the open market. Reasonable Marketing Time The reasonable marketing time represents the most probable time required to expose the subject property on the open market to consummate a sale at a market level price. Based upon interviews with market participants, marketing time is a difficult variable to estimate. Participants interviewed within the course of this report indicated that marketing time is a direct function of price and exposure. These variables are interconnected and cannot be estimated independently. Fundamental economic theory indicates that value and marketing time are directly related, and must be estimated simultaneously in order to be meaningful. The Reasonable Marketing Period for the subject property is supported by the marketing periods of the comparable sales noted in the Sales Comparison Approach. Based upon this information and analysis, we believe a reasonable marketing time for the subject property to be between three and nine months. In accordance with Advisory Opinion AO-7 issued by the Appraisal Standards Board of the Appraisal Foundation, the estimate of marketing time is not intended to be a prediction of a date of sale. Clobus, McLemore & Duke, Inc. ANALYSIS OF DATA ANALYSIS OF DATA Clobus, McLemore & Duke, Inc. ANALYSIS OF DATA 48 The Appraisal Process The appraisal process normally gives consideration to the "three approaches" as to which they are typically referred. They include the Cost Approach, the Sales Comparison Approach and the Income Approach. The Appraisal of Real Estate, 14th ed., 2013, outlines the mechanics of each approach as follows: Sales Comparison — Sales of similar, vacant parcels are analyzed, compared, and adjusted to provide a value indication for the land being appraised. Allocation — Sales of improved properties are analyzed and the prices paid are allocated between the land and the improvements. Allocation can be used in two ways: to establish a typical ratio of land value to total value, which may be applicable to the property being appraised, or to isolate the value contribution of either the land or the building from the sale for use in comparison analysis. Extraction — Land value is estimated by subtracting the estimated value of the improvements from the known sale price of the property. This procedure is frequently used when the value of the improvements is relatively low or easily estimated. Subdivision Development — The total value of undeveloped land is estimated as if the land were subdivided, developed, and sold. Development costs, incentive costs, and carrying charges are subtracted from the estimated proceeds of sale, and the net income projection is discounted over the estimated period required for market absorption of the developed sites. Land Residual Technique — The land is assumed to be improved to its highest and best use. All expenses of operation and the return attributable to the other agents of production are deducted, and the net income imputed to the land is capitalized to derive an estimate of land value. An alternative land residual technique is applied by valuing the land and improvements and deducting the cost of the improvements and any entrepreneurial profit. The remainder is the residual land value. Ground Rent Capitalization — This procedure is used when land rents and capitalization rates are readily available such as in well-developed areas. Net ground rent, the net amount paid for the right to use and occupy the land, is estimated and divided by a land capitalization rate. Either actual or estimated rents can be capitalized using rates that can be supported in the market. This procedure may be seen as an extension of sales comparison but, where applicable, it provides a specific unit of comparison. Clobus, McLemore & Duke, Inc. ANALYSIS OF DATA 49 All of these techniques have been considered for purposes of our analysis. However, based on the subject property type and the availability of comparable data, the Sales Comparison Approach and Land Residual Technique are most applicable and applied for purposes of this analysis. Highest and Best Use The definition of highest and best use (see glossary in the Addendum) implies recognition of the contribution of specific use to the community environment or to community development goals, in addition to wealth maximization of individual property owners. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (Market Value,) another appropriate term to reflect highest and best use would be most probable use. In the context of investment value, an alternative term would be most profitable use. Highest and Best Use As Though Vacant Highest and best use must meet four criteria: Legal Permissibility, Physical Possibility, Financial Feasibility and Maximum Profitability. We have analyzed the criteria with regard to the subject site as follows: • Legal Permissibility The most significant legal constraint to land use is zoning which specifies the type and intensity of land use. Zoning laws are designed to allow for the orderly development of communities rather than permitting a disorganized sprawl. The goal in general terms is to provide for comparable neighboring land uses, coordinate the development of primary infrastructure and reduce the overall cost of providing the necessary services to the community. The subject site is zoned B-1, Neighborhood Business District, as implemented by the City of Sunny Isles Beach. The Neighborhood Business District is established to provide locations for convenience shopping facilities in which those retail commercial uses shall predominate that have a neighborhood-oriented market and which supply necessities that usually require frequent purchasing and with a minimum of consumer travel. Typical uses to be found in the Neighborhood Business District include a food supermarket, drugstore, personal service establishments, small specialty shops, and a limited number of small professional offices. Mixed-use developments that integrate residential over retail or office use are encouraged, especially to promote live/shop/work associations within the same site. They should be designed to be an integral, homogeneous component of the neighborhoods they serve, oriented to pedestrian traffic as well as vehicular. Because of the nature and Clobus, McLemore & Duke, Inc. ANALYSIS OF DATA 50 location of the Neighborhood Business District, they should be encouraged to develop in compact centers under a unified design that is architecturally compatible with the neighborhood which they are located adjacent to. Further, such districts should not be so large or broad in scope of services as to attract substantial trade from outside the neighborhood. Lot assembly, however, shall be encouraged to promote enhanced at-grade pedestrian and bicycle circulation systems, greater site design efficiency, especially for parking, and reduced vehicular circulation drive impacts. Permitted uses within the district include a wide range of commercial property types, including, but not limited to, retail, office, restaurants, hotels, religious facilities and schools. The district also allows for all uses permitted in the RMF-1, Medium Density Multi-family Residential District, including single family, duplex, townhouse and medium density residential development of multi-family dwellings at a maximum density of 25 dwelling units per net acre. Site development standards within the B-1 district are summarized as follows: Site Development Standards B-1,Neighborhood Business District Maximum F.A.R 2.0* Maximum Dwelling Unit Density 25 units/acre* Maximum Lot Coverage 80.0% Maximum Building Height(Collins Ave) 190 feet The indicated maximum floor area ratio (FAR) of 2.0 may be increased in accordance with the following bonus provisions. The maximum potential FAR bonuses with respect to the subject site were provided by the City of Sunny Isles Beach Planning and Zoning Administrator, Ms. Claudia Hasbun, and are summarized as follows: Clobus, McLemore & Duke, Inc. ANALYSIS OF DATA 51 FAR Bonus Schedule 18080 Collins Avenue -44,745 SF Base FAR 2.00 Maximum Bonuses: Enclosed On-Site Parking 0.40 City of Sunny Isles Beach Public Parking 0.25 Collins Avenue Streetscape Enhancement 0.30 Site Assembly 0.12 Total Base FAR+Bonuses 3.07 TDRs(30%of Base+Bonuses) 0.92 Subject Site Maximum FAR(including base, bonuses +TDRs) 3.99 x 44,745 SF 178,752 SF Additionally, the maximum dwelling density of 25 units per acre may be increased by one dwelling unit per acre for each 0.02 increase in FAR granted, up to a maximum density of 80 units per acre. The subject site is also located within the BD, Business Overlay District, which is established to encourage and provide locations for cultural and educational uses and facilities within the City of Sunny Isles Beach. The Business Overlay District is intended to be applied to and overlay the Mixed Use-Business Land Use category, outside of the Town Center District (TCD). This land use category is intended to provide services primarily for surrounding residential areas, neighboring communities and visitor populations in an environment oriented to the pedestrian and adjacent street frontages. The Business Overlay District is designed to supplement and complement the existing Neighborhood Business District (B-1) zoning category. Complete descriptions of the B-1 and BD districts are located within the Addenda section of this report. • Physically Possible The subject site consists of two adjacent parcels totaling 44,745 square feet or 1.027 acres. The site has a rectangular shape and possesses 100 feet of frontage each along Collins Avenue to the east and Atlantic Boulevard to the west. The site is essentially level at road grade and is accessible from the adjacent roadways. No drainage, soil or subsoil problems appear to inhibit development of the site, and all utilities and services necessary for development are available. Overall, the subject site appears to be physically capable of accommodating any of the legally permitted uses of the site in its vacant state. Clobus, McLemore & Duke, Inc. ANALYSIS OF DATA 52 • Financially Feasible/Maximally Productive Financially feasible uses are the logical uses, which are physically possible, and legally permissible that will produce any net return to the owner of the site. Maximum profitability deals with the use that will produce the greatest net return to the owner of the site over a given period of time; it is also the highest and best use of the site as if vacant. Based upon the legally permissible uses, locational characteristics, site size/orientation, current demand, construction costs and cash flow in mind, and considering the approvals currently in place, an office development with potential municipal uses is be considered a financially feasible use as well as the maximally productive use of the subject site. Clobus, McLemore & Duke, Inc. SITE VALUATION 53 Estimate of Land Value Sales Comparison Approach The valuation of vacant land is generally accomplished by searching for recent sales of similar sites. The motivations behind the purchase are examined, reducing the sale prices into value indicators, comparing each sale with the subject property and finally reconciling the comparisons into a final value estimate. The reconciliation uses a common unit of comparison. According to brokers, developers and market participants, the proper value indicator of a site suitable for commercial development within this area is the sale price per square foot of site area. The current owner of the subject property obtained approvals from the City for the development of a 17-story, 136,250-square foot office tower with ground floor retail and a structured parking garage. However, the approvals, which were granted in October 2013, are scheduled to expire later this year as permits have yet to be pulled by the developer. As mentioned, the City is contemplating a purchase of the subject site for the potential development of an office building and parking garage to be utilized in conjunction with the adjacent Sunny Isles Beach Government Center which houses City Hall and other municipal services. The South Florida economic recovery is well underway but speculative office building sites have yet to trade with any frequency, especially in coastal areas such as the subject where multi-family residential development is the priority. As such, recent land sales within the subject submarket, especially those purchased for speculative office development, are extremely limited. Therefore, the comparable sales search concentrated on any recent transactions of competitive sites zoned for commercial development along the Collins Avenue corridor. A Comparable Land Sales Summary Table and location map are presented on the following pages. Detailed profiles of the comparables are presented in the addenda to this report. Clobus, McLemore & Duke, Inc. SITE V LUATON5 - @9 ) $ C\J C) C 282 £ 7 000l o00 $ o g a) 8 < @ ® QZw � a ) ' o \ I6 oo ] a a00000 a - � $ - F - ° /\ § // \ \ / / 2k & emu f ® _ C 0 Cr) • @90 gR � ° ° ° ° - 00N- = a 0 © < ; n '• % $ / f § . o � & a 0001 000000 § r � / a [ � az , an § n # § . � � w co a = m A- E = $ � § \ $Q Q \ Ni- o e _ § 0 6 % / > ( 0 co ■ 1 0 N o oN = � 7 , e � ow � � e § f � RRR 0 ± CO Gp97 § RR : 00) o I 0000j @ » @ ° ° 7 ) m .c 2 = R ° & 3 @ � £ 8 / . a cy \ � MCU Za) - < "5 � / 3� 64 64 E2 ° 0 - N _ E m c a o £ § = 0 ® CI) U) co 2 � a 2 - = - @9 � 00 ) m ° & 2 G ® ® * G ° ° ® $ J2 3 ■ = 2 < Q ten , - = ± § � Ni � GG / \ § 0OoO '0 > � e = _ a) 66 � \ z ra ) § § � e ° § 0 � co � £ > = = E7 5 & & \ � _ 0 \ $ < ® ? $ Cr : 2 To ) = » ©co " RI E 0 ) a E ■ = 00 cp Q > 09g 1.0 I"- W IIIII « C o < ca woEwco � § C / » / 03 $ ' 2 fZ 0 � < { 0 k c 0 m / a ) // ma) b c a) 2 2as c E a E2E@ VS c = x 2 2 2 ° D z 0 6 2 ) » • << e § u o a) » _$ = to e o _m > £ E --0oc)f0 alj § � \ § 413 .o " b 42 6 7 E g 2 � � ) § � ak % o CC(33._0 \ �: \ ƒ o 0 �zz « = & E < 0, mm0Em , 0L2 EjN3 < /\ < a a m 2 a Clobus, McLemore& Duke, Inc. SITE VALUATION 55 Comparable Land Sales Location Map j ,, ii II!! 2. ro- t I nr '" "'" f "' : .£ —� %r,r ;i i Yq rr fi -ate",. a°.�:. ,`i __ ...„, �{ sir-.. 1 1. •I r,,,...,',.„ ,..., ,. p • ..,,,,„,, ,,;,..... ----4-f,....01.I.A.r.u.w,-.A.. ; h , i ltt=, Gold t, A. 't s u to y s r . Rentpra g 4 1 I mg 1 r 1 1 �. �' 55 � � I I 0.,'�' A,.x"� v � es � f 3"act `. r ' ' '' 14 '. * � ` "nary,,+ ! , ",f J Y .kz�' ""� O 4 ,..,...„,,,,,,,,,.....„„,,, ,p.„._ _., w v . . i_iz`. *,,' - iit 1 er a '• II�1 �a �q ,� � Sri`' ,�� d{ R, f � ,. �r .a. k t 'q v lea .tip , t s* ¢ a t '' e, Mr- ,, , 4 — S�ibject Property ' t y x It.;. ate` o f a 1 .+. ii,z; 1 `�' ✓ °u^. . i,,#�xu."x sr' �'k, oY a s 04 5 �4 3 '"v' $ !� try x:• !;7 — T a 1 7--t-5. i r 7 , y Ya as ��t r x •°Ras ' 1_ • 7 ` ' J a , a'c?� e?- v x r#: r Town r�E r C dy{ r d 54 , ew �S"s m , � 1 • 3 s Y ti xi,, 1 .5.,� wsA �. ,.,.+ K t y y nom,.""sr.em..u..-.J u, v �'` . r y's !►}�� ,y^` "F.r� r , s. aS ka vt^T`�,.. w� tIv t — — .— Sunny v. t ' s .- s t r . �a ,zt .,--- i`' 4 iei- .t v '-,.t w',:t. : ,a : .,,,:.- $ I x, „ , f44.',.4•.,.:•-..,-,-. } �t �� ..:e ' * _ ami a i>,ar �-� i r �' �', a- T �� 0•,` ,�rt r 7 ii' r A :`, .- k' §� '` & \+� x` 1 &,w `,..i: b - ttg: "t Bea zf i,�r1,f_ d ' . t� ; i ; ". x ° a a ,,goof' z ry �s {•.j, t k -„.� Clobus, McLemore & Duke, Inc. SITE VALUATION 56 Analysis of Sales Property Rights Conveyed— A fee simple interest was paid for each property, similar to the ownership interest under valuation for the subject in this portion of the analysis. Sale 2 is currently leased to a fast food restaurant, however the lease is scheduled to expire in the relative near term, and the price paid for the site is reflective of land value for future redevelopment. As such, no adjustments for property rights were warranted. Financing Terms — The transaction price of one property may differ from that of an identical property because financing arrangements vary. If a buyer of a certain property assumed an existing mortgage at a favorable (below current market) interest rate, the buyer may have paid a higher price than a purchaser of the subject can be expected to pay under current market financing terms. Other forms of favorable financing often include below-market seller financing, such as purchase money and/or wraparound mortgages. All of the comparables represent cash transactions, or were financed by acquisition and development loans at market rates; thus, no adjustment for cash equivalency was required for any of the comparable sales. Conditions of Sale (Motivation) —When the conditions of sale are atypical the result may be a price that is higher or lower than that of a normal transaction. When non-market conditions of the sale are noted, the sale should be related to the subject only with great care. Typically, market based adjustments are very difficult to make for such situations. With regard to the comparable sales, all were verified as "arm's-length" transactions between unrelated parties under no duress and thus, no adjustments were warranted. Market Conditions (Time) — Market conditions may change between the time of sale of a comparable property and the date of the appraisal of the subject. Under these circumstances, the price of the comparable property would be different at the date of the appraisal, and an adjustment should be considered. Time itself does not necessitate an adjustment, but rather a shift in market conditions over time. If market conditions have not experienced any significant change, no adjustment would be required, even if a considerable amount of time had passed. The comparable sales, which represent similar and competitive development sites, transferred over a 2+ year period and reflect a substantial increase in pricing. Therefore, upward adjustments were applied to Sales 3 and 4, which occurred in mid-2012. The recent transaction and contract dates of Sales 1 and 2 reflect current market conditions and thus no other adjustments were warranted. Location — An adjustment for location may be required if the locational characteristics of a comparable property are significantly different from those of the subject property. The Clobus, McLemore & Duke, Inc. SITE VALUATION 57 subject and comparable sales are similarly located within a one-mile stretch along the west side of Collins Avenue in Sunny Isles Beach. No adjustments were warranted. Physical Attributes and Site Conditions — With regard to physical attributes, the subject site possesses a sufficiently large site area, reasonably level topography, and all utilities are available. Each of the comparable sales has a functional size and shape and all are at or near street level. All of the comparables were examined physically and were able to be improved with building and site improvements. The subject and three of the four sales are currently improved and thus will require demolition prior to redevelopment. Sale 4 is currently vacant; however, demolition costs are considered nominal and thus no adjustments for site conditions were required. Zoning and Development Approvals — An adjustment for zoning may be necessary if a property has greater flexibility of development. This is often reflected in the variety of uses that may be placed on a given property. The subject and Comparable Sales 1, 2 and 4 possess the same B-1 zoning designations. Sale 3 benefits from a more liberal TCD zoning district and was therefore considered superior and adjusted downward accordingly. As previously noted, the subject's current approvals are set to expire and thus any new development would require obtaining new approvals. None of the comparable sales were approved for development at the time of sale. Therefore, no other adjustments were warranted. Size — The subject site area totals 44,745 square feet or 1.027 acres, which falls within the range exhibited by the comparable sales (16,970 — 136,325 SF). Normally, an inverse relationship exists between the price per unit of a property and its size. Therefore, downward adjustments were applied to Sale 1 and 2, which possess smaller (superior) site sizes ranging from 16,970 to 31,900 square feet. Conversely, Sale 3 possesses a substantially larger (inferior) site size of 136,325. Each sale was adjusted accordingly. Reconciliation Four land sales were analyzed and a comparative process was undertaken whereby direct comparison was made between the subject site and the comparables. The comparable sales required subjective relative adjustments for market conditions, zoning and size. The adjusted value indicators form a relatively tight range from $211.60 to $219.02 per square foot. Based upon the foregoing analysis of the comparables, the proper value indicator for the subject is estimated to be $215.00 per square foot of site area. Clobus, McLemore & Duke, Inc. SITE VALUATION 58 Value is calculated as follows: Value Indication—Sales Comparison Approach Land Size 44,745 Multiplied by: Value per Square Foot $215.00 Market Value Indicator $9,620,175 Rounded $9,620,000 Land Residual Technique Due to the limited sales activity of comparable sites, the land residual technique has also been utilized in estimated the market value of the subject. For purposes of the land residual technique, the site is assumed to be improved to its highest and best use. In this case, the currently approved office project of 136,250 rentable square feet is utilized. The land residual technique is applied by valuing the land and improvements and deducting the cost of the improvements and any entrepreneurial profit. The remainder is the residual land value. Value Indication— Land Residual Technique Year 1 (2018) NOI $4,374,325 Year 1 Stable Value Based on 7.00% OAR $62,490,357 Construction Costs Office (136,250 SF @$200/SF) $27,250,000 Pkg Garage (515 spaces @ $13,200/Space) $6,798,000 Indirect Cost/Rent Loss (25%) $8,512,000 Total Construction Costs $42,560,000 Ent. Profit (20%) $8,512,000 Total Project Costs Including Profit $51,072,000 Land Residual Before Discount $11,418,357 PV Factor (6%, 3 Years) 0.8396 NPV of Land After Discounting $9,586,853 Rounded $9,590,000 Per SF $214.33 Assumptions Rents: Retail $50/SF, Office$35/SF (NNN) Vacancy: 8% Exps: $0.50/SF (Misc, Reser'es) Costs: Marshall Valuation Senrice, Costs Comps Project Timeline: 3 Years (Construction& Lease-Up) Clobus, McLemore & Duke, Inc. SITE VALUATION 59 Reconciliation and Final Estimate of Value The Sales comparison Approach and Land Residual Technique resulted in the following values for the subject property: Valuation Method Value Conclusion Sales Comparison Approach $9,620,000 Land Residual Technique $9,590,000 Both valuation methods utilized represent appropriate methods of estimating market value for the subject property. The quality and quantity of information necessary to complete each technique were satisfactory. Both methods represent the analytical procedures employed by buyers of property types such as the subject. Therefore, based on the foregoing analysis, the Market Value "As Is" of the fee simple interest in the subject site, as of February 18, 2015, subject to the stated extraordinary assumptions is estimated to be: NINE MILLION SIX HUNDRED THOUSAND DOLLARS ($9,600,000) Clobus, McLemore & Duke, Inc. ADDENDA ADDENDA Clobus, McLemore & Duke, Inc. ADDENDA ASSUMPTIONS, CONTINGENT AND LIMITING CONDITIONS Clobus, McLemore 8 Duke, Inc. ADDENDA Basic Assumptions, Contingent and Limiting Conditions This appraisal report is made expressly subject to the following assumptions and limiting conditions and any special limiting conditions contained in the report which are incorporated herein by reference. This appraisal represents the best opinion of the appraiser(s) as to Market Value of the property as of the appraisal date. The term "Market Value" is defined in the appraisal report. The legal description furnished is assumed to be correct. The appraiser(s) assumes no responsibility for matters legal in character, nor does he/she render any opinion as to the title, which is assumed to be good. All existing liens and encumbrances, if any, have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management. Any sketch in this report is included to assist the reader in visualizing the property. The appraiser(s) has made no survey of the property and assumes no responsibility in connection with such matters. The appraiser(s) believes to be reliable the information which was furnished by others, but he/she assumes no responsibility for its accuracy. Possession of this report, or a copy thereof, does not carry with it the right of publication, nor may it be used for any purpose by any but the client, without the previous written consent of the appraiser(s) or the client, and then, only with proper qualification. The appraiser(s) is not required to give testimony in deposition or in court, or give testimony at a governmental hearing by reason of this appraisal with reference to the property in question, unless arrangements have been previously made with the approval of the appraiser(s). Said arrangements must be prior to 30 days of the anticipated date. Further, the appraiser(s) reserves the right to consider and evaluate additional data that becomes available between the date of this report and the date of trial, if applicable, and to make any adjustments to the value opinions that may be required. No testimony will be rendered unless the entire appraisal fee has been paid. Further, all testimony will be subject to expert witness fees previously approved by the appraiser(s). The distribution of the total value of this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. The land, and particularly the soil, of the area under appraisement appear firm and solid. Subsidence in the area is unknown or uncommon, but this appraiser(s) does not warrant against this condition or occurrence. Subsurface rights (mineral and oils) were not considered in making this appraisal. The appraiser(s) carefully inspected the buildings involved in this appraisal report and damage, if any, by termites, dry rot, wet rot, or other infestations, was reported as a Clobus, McLemore & Duke, Inc. ADDENDA matter of information by the appraiser(s), but he/she does not guarantee the amount or degree of damage, if any. All furnishings and equipment, except those specifically indicated and typically considered as a part of real estate, have been disregarded by the appraiser(s). Only the real estate has been considered. The comparable sales data relied upon in this appraisal is believed to be from reliable sources; however, it was not possible to inspect the interiors of all of the comparable, and it was necessary to rely on information furnished by others as to physical and economic data. The appraiser(s) has inspected, as far as possible, the land and the improvements thereon; however, it was not possible to personally observe conditions beneath the soil or hidden structural components within the improvements; therefore, no representations are made herein as to these matters and, unless specifically considered in the report, the value estimate is subject to any such conditions that could cause loss in value. Conditions of heating, cooling, ventilating, electrical, and plumbing equipment is considered to be commensurate with the conditions of the balance of the improvements, unless otherwise stated. Disclosure of the contents of this appraisal report is governed by the Bylaws and Regulations of the Appraisal Institute. Unless otherwise stated in the report, the existence of hazardous substances including, without limitation, asbestos, radon gas, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of the appraiser(s), nor did the appraiser(s) become aware of such during the appraiser's inspection. The appraiser(s) has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser(s), however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. The appraisal is as of the date specified and covers the legally described property only. The current purchasing power of the U.S. Dollar is the basis for the value reported. The appraiser(s) assumes no responsibility for economic or physical factors occurring at some later date, which may affect the opinions herein stated. This appraisal is presented as a complete, bound report, and may be considered valid only so long as it is presented in its entirety. Further, all pages listed in the Table of Contents must be present and the appraiser's signature accompanied by the raised seal. Neither all, nor any part of the content of the report, or copy thereof, [including conclusions as to the property value, the identity of the appraiser(s), or the firm with which the appraiser(s) is connected], shall be used for any purposes by anyone but the Clobus, McLemore & Duke, Inc. ADDENDA client specified in the report, the mortgagee or its successors and assigns, mortgage insurer, consultants, professional appraisal organizations, any state or federally approved financial institution, any department, agency or instrumentality of the United States or any State, or the District of Columbia, without the previous written consent of the appraiser(s); nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales or other media, without the written consent and approval of the appraiser(s). The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The appraiser(s) has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser(s) has no direct evidence relating to this issue, the appraiser(s) did not consider possible non- compliance with the requirements of ADA in estimating the value of the property. The appraiser(s) recommends that the entities affected by the Act conduct an "ADA Audit" of the facilities. The ADA Audit should be performed by competent legal professionals who are familiar with the detail and specificity of the Act, in conjunction with architects and engineers versed in its technical requirements. The cost to cure any non-compliant item(s) may serve to reduce the value estimate contained in this report and the appraiser(s) assumes no responsibility for any such condition, nor for any expertise or engineering knowledge required to discover them. Should the appraiser(s) be required to enforce the above assumptions, contingent and limiting conditions against any entity, person or persons claiming damages because of reliance upon or use of this appraisal report, that entity, person or persons shall be liable to the appraiser(s) for all reasonable attorney's fees, costs, and expenses incurred by the appraiser(s) in enforcing this contract or defending the contingent conditions set forth in the appraisal report, including that incurred without suit, with suit, including all trials and appeals thereof. Acceptance of delivery or the payment for this report constitutes acceptance of this condition and all other contingent conditions set forth herein. Clobus, McLemore & Duke, Inc. ADDENDA DEFINITIONS Clobus, McLemore & Duke, Inc. ADDENDA APPRAISAL DEFINITIONS Absolute net (bond) lease. A lease in which the tenant is responsible for payment of all expenses including but not limited to real estate taxes, insurance, maintenance, utilities, janitorial and structural repairs. The intent of this lease type is that the landlord absorbs no expenses relating to the operation or repair of the leased space. Aggregate of retail values (ARV). The sum of the appraised values of the individual units in a subdivision, as if all of the units were completed and available for retail sale, as of the date of the appraisal. The sum of the retail sales includes an allowance for lot premiums, if applicable, but excludes all allowances for carrying costs. Appraisal. (Noun) The act or process of developing an opinion of value. (Adjective) Of or pertaining to appraising and related functions such as appraisal practice or appraisal services. Client. The party or parties who engages an appraiser (by employment or contract) in a specific assignment. Discounted cash flow (DCF) analysis. The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams as well as the quantity and timing of the reversion and discounts each to its present value at a specified yield rate. DCF analysis can be applied with any yield capitalization technique and may be performed on either a lease-by-lease or aggregate basis. Effective rent. The rental rate net of financial concessions such as periods of no rent during the lease term; may be calculated on a discounted basis, reflecting the time value of money, or on a simple, straight-line basis. Extraordinary assumption. An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and ■ The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. Fee simple estate. Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Floor area ratio (FAR). The relationship between the above-ground floor area of a building, as described by the building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. See also land-to-building ratio. Full service lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real estate taxes, insurance, maintenance, all utilities and janitorial. Clobus, McLemore & Duke, Inc. ADDENDA Going-concern value. 1. The market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; also called value of the going concern. 2. Tangible and intangible elements of value in a business enterprise resulting from factors such as having a trained work force, an operational plant, and the necessary licenses, systems, and procedures in place. 3. The value of an operating business enterprise. Goodwill may be separately measured but is an integral component of going-concern value. Gross lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real estate taxes, insurance, and maintenance, but not tenant utilities and janitorial. Highest and best use. The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. Hypothetical condition. That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. Industrial gross lease. A lease in which the landlord is responsible for all payment of all expenses pertaining to base year real estate taxes, base year insurance, and maintenance, but not tenant utilities and janitorial. Tenant is responsible for any increases over base year (first lease year) real estate taxes and insurance. Inspection, property inspection. In accordance with generally accepted appraisal standards an inspection is the act of touring or viewing a property. It is a cursory or superficial visual observation of the property which is not intended to be confused with an assessment of a building, structure or mechanical systems performed by a professional engineer or general contractor. Intended use. The use or uses of an appraiser's reported appraisal, consulting, or review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment. Intended user. The client and any other party as identified, by name or type, as users of the appraisal, consulting, or review report, by the appraiser based on communication with the client at the time of the assignment. Investment value. The value of a property interest to a particular investor or class of investors based on the investor's specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. Clobus, McLemore & Duke, Inc. ADDENDA Leased fee estate. An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease. Market value. As defined in the Agencies' appraisal regulations, the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interest; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. Dollars, or in terms of financial arrangements comparable thereto; and 5. the price represents a normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. SOURCE: Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472. Neighborhood shopping center. The smallest type of shopping center, generally with a gross leasable area of less than 100,000 square feet. Typical anchors include supermarkets and pharmacies. Neighborhood shopping centers offer convenience goods and personal services, and usually depend on the market support of more than 1,000 households. Net lease. A lease in which the tenant is responsible for expenses payment of all expenses pertaining to real estate taxes, insurance, maintenance, utilities and janitorial. The landlord is responsible only for expenses relating to structural repairs. Overall capitalization rate (R0). An income rate for a total real property interest that reflects the relationship between a single year's net operating income expectancy and the total property price or value; used to convert net operating income into an indication of overall property value(R0= IoNo). Personal property. Identifiable portable and tangible objects which are considered by the general public as being "person", e.g. furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate. Prospective value estimate. A forecast of the value expected at a specified future date. A prospective value estimate is most frequently sought in connection with real estate projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long-term occupancy at the time the appraisal report is written. Retrospective value opinion. An opinion of value that is likely to have applied as of a specified historic date. A retrospective value opinion is most frequently sought in connection with appraisals for estate tax, condemnation, inheritance tax, and similar purposes. Scope of work. The type and extent of research and analyses in an assignment. Shell space. Space in which no interior finishing has been installed, including even basic improvements such as ceilings, interior walls and floor coverings. Clobus, McLemore & Duke, Inc. ADDENDA Use value. 1. In economics, the attribution of value to goods and services based upon their usefulness to those who consume them. 2. In real estate appraisal, the value a specific property has for a specific use; may be the highest and best use of the property or some other use specified as a condition of the appraisal; may be used where legislation has been enacted to preserve farmland, timberland, or other open space land on urban fringes. Vacancy and collection loss. An allowance for reductions in potential income attributable to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. Variable expenses. Operating expenses that generally vary with the level of occupancy or the extent of services provided. Yield capitalization. The capitalization method used to convert future benefits into present value by discounting each future benefit at an appropriate yield rate or by developing an overall rate that explicitly reflects the investment's income pattern, value change, and yield rate. Yield rate (Y). A rate of return on capital, usually expressed as a compound annual percentage rate. A yield rate considers all expected property benefits, including the proceeds from sale at the termination of the investment. Yield rates include the interest rate, discount rate, internal rate of return (IRR), overall yield rate(Y0)and equity yield rate (YE). Clobus, McLemore & Duke, Inc. ADDENDA LAND SALE PROFILES Clobus, McLemore & Duke, Inc. Pending Land Sale No. 1 LL .2 ., _ V /4...t 1 3,),T H m;c 1T : fir _ , .. 1/R1� C ce i a F '. .-` i Property Identification Record ID 2489 Property Type Business/Commercial Address 18590 Collins Avenue, Sunny Isles Beach, Miami-Dade County, Florida 33160 Tax ID 31-2202-006-0050 Sale Data Grantor Corner House, LLC Grantee Confidential Closing Date 1st Qtr 2015 Deed Book/Page 28167/2863 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Equivalent Verification Confirmed by Steve Kuhn Contract Price $4,625,250 Cash Equivalent $4,625,250 Land Data Zoning B-1,Neighborhood Business Topography Level at road grade Utilities All to site Shape Rectangular Pending Land Sale No. 1 (Cont.) Depth 450 Land Size Information Gross Land Size 0.390 Acres or 16,970 SF Front Footage Collins Avenue;186th Street Indicators Sale Price/Gross Acre $11,872,474 Sale Price/Gross SF $272.55 Remarks This is the sale of a commercially zoned parcel of vacant land located at the southwest corner of Collins Avenue and 186th Street in Sunny Isles Beach. The contract was signed in December 2014 and is scheduled to close in early 2015. The buyer's plans are unknown. Land Sale No.2 r, , . T a- x rte.• _ . ,. v !` i _I rt 7 rr JP "RI G it ` ,- -s c. 1 l #,f . ‘. . , I j • pta Property Identification Record ID 2487 Property Type Business/Commercial Address 17730 Collins Avenue, Sunny Isles Beach, Miami-Dade County, Florida 33160 Tax ID 31-2211-003-0041 Sale Data Grantor BRB Investments(50%), LRJ Owners, LLC(25%),Joan Reed (25%) Grantee 17730 Collins Avenue, LLC Sale Date November 12, 2014 Deed Book/Page 29389/4987 Recorded Plat 35/51 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Equivalent Verification Confirmed by Steve Kuhn Sale Price $7,500,000 Cash Equivalent $7,500,000 Land Data Zoning B-1 Land Sale No.2 (Cont.) Topography Level, road grade Utilities All to site Shape Rectangular Land Size Information Gross Land Size 0.732 Acres or 31,900 SF Front Footage Collins Avenue; Atlantic Boulevard Indicators Sale Price/Gross Acre $10,241,379 Sale Price/Gross SF $235.11 Remarks This is the sale of an existing McDonald's fast food restaurant located along the west side of Collins Avenue in Sunny Isles Beach. The property is encumbered by a lease and the current extension period is scheduled to expire in March 2017, although additional extension options remain. The purchase price of$7,500,000 results in an overall rate of return of less than 1% based on the annual rental amount of$65,000, and thus the price paid was predicated on the land value and the site's redevelopment potential. Land Sale No.3 r ' - .N . ` •` , �J xx 72ND S Ir°,ic m.� SJNN• msr / 7,. raj.. PF H 0TK ST • Property Identification Record ID 2486 Property Type Business/Commercial Address 17146-17190 Collins Avenue, Sunny Isles Beach, Miami-Dade County, Florida 33160 Tax ID 31-2211-001-0010; 0050; 004-0120; 0112 Sale Data Grantor Jerry's Famous Deli, Inc. Grantee 17190 Collins Avenue Sale Date July 06, 2012 Deed Book/Page 28179/3557 Recorded Plat 52/69 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Equivalent Verification Confirmed by Steve Kuhn Sale Price $19,050,000 Cash Equivalent $19,050,000 Land Sale No.3 (Cont.) Land Data Zoning TCD Topography Level at road grade Utilities All to site Shape Rectangular Land Size Information Gross Land Size 3.130 Acres or 136,325 SF Front Footage Collins Avenue;172nd Street Indicators Sale Price/Gross Acre $6,087,057 Sale Price/Gross SF $139.74 Remarks This is the sale of a prime redevelopment site situate along Collins Avenue in Sunny Isles Beach. The site is currently improved with a retail property that includes the Epicure market and cafe. The buyer plans to redevelop the site with a mixed-use project. Land Sale No. 4 i;, r'- S, J i yt ... ✓ t: Property Identification Record ID 2485 Property Type Business/Commercial Address 18080 Collins Avenue, Sunny Isles Beach, Miami-Dade County, Florida 33160 Tax ID 31-2211-082-0010; 0020 Sale Data Grantor City of Sunny Isles Beach Grantee Dezer Universal, LLC Sale Date May 11,2012 Deed Book/Page 28167/2863 Recorded Plat 64/74 Property Rights Fee Simple Conditions of Sale Arm's Length Financing Cash Equivalent Verification Confirmed by Steve Kuhn Sale Price $7,000,000 Cash Equivalent $7,000,000 Land Data Zoning B-1,Neighborhood Business Topography Level at road grade Utilities All to site Land Sale No.4(Cont.) Shape Rectangular Depth 450 Land Size Information Gross Land Size 1.027 Acres or 44,745 SF Front Footage 100 ft Total Frontage: 100 ft Collins Avenue;100 ft Atlantic Boulevard Actual/Planned Building SF 136,250 Indicators Sale Price/Gross Acre $6,814,616 Sale Price/Gross SF $156.44 Sale Price/Front Foot $70,000 Sale Price/Planned Bldg. SF $51.38 Remarks This is the sale of a 1.027-acre prime commercial development site situated along the west side of Collins Avenue in Sunny Isles Beach,and adjacent to Sunny Isles Beach City Hall. The site is improved with a 1,377-square foot commercial building and is currently encumbered by a ground lease in conjunction with an Alamo car rental operation. The transaction occurred in May 2012 and the owner subsequently obtained approvals for a 17-story, 136,250-square foot office tower with ground floor retail and a structured parking garage. The approvals were granted in October 2013 and are scheduled to expire in October 2015 if permits have not been pulled by the developer. ADDENDA ZONING Clobus, McLemore & Duke, Inc. §265-36. -Neighborhood Business (B-1). [Amended 11-20-2003 by Ord. No. 2003-184; 1-15-2004 by Ord. No. 200-192; 4-11-2006 by Ord. No. 257; 4-11-2006 by Ord. No. 257; 12-14-2006 by Ord. No. 2006-272; 6-20-2013 by Ord. No. 2013-408; 9-19-2013 by Ord. No. 2013-4111 A. Purpose. The Neighborhood Business District (B-1) is established to provide locations for convenience shopping facilities in which those retail commercial uses shall predominate that have a neighborhood-oriented market and which supply necessities that usually require frequent purchasing and with a minimum of consumer travel. Typical uses to be found in the Neighborhood Business District include a food supermarket, drugstore, personal service establishments, small specialty shops, and a limited number of small professional offices. Mixed-use developments that integrate residential over retail or office use are encouraged, especially to promote live/shop/work associations within the same site. They should be designed to be an integral, homogeneous component of the neighborhoods they serve, oriented to pedestrian traffic as well as vehicular. Because of the nature and location of the Neighborhood Business District, they should be encouraged to develop in compact centers under a unified design that is architecturally compatible with the neighborhood which they are located adjacent to. Further, such districts should not be so large or broad in scope of services as to attract substantial trade from outside the neighborhood. Lot assembly, however, shall be encouraged to promote enhanced at-grade pedestrian and bicycle circulation systems, greater site design efficiency, especially for parking, and reduced vehicular circulation drive impacts. B. Uses permitted. No building or structure, or part thereof, within the district shall be erected, altered or used, or land used in whole or in part for other than one or more of the following specific uses, subject to all other applicable standards and requirements contained in this chapter: (1) All uses permitted in the RMF-1 district. (2) Retail uses. (3) Banks and financial institutions. (4) Conservatories and music and dance schools. (5) Health spas and studios. (6) Hotels. (7) Offices: business, medical and professional. (8) Pet grooming and supplies with no kennels or overnight animal boarding. (9) Restaurants and coffee houses or dining rooms with incidental sales of alcoholic beverages. (10) Religious facilities. (11) Schools. (12) Post office and self-service postal stores for walk-up trade. (13) Telecommunications facilities. C. Conditional uses. (1) Open, unenclosed display and sales of flowers, fruits and vegetables as an accessory use to an adjacent established business housed in a permanent structure. (2) Open, unenclosed display and sales of retail merchandise from pushcarts and kiosks. (3) Temporary public markets, festivals and special events limited to three consecutive day periods. (4) Bars, taverns, lounges, provided that individual establishments shall not exceed 3,000 square feet in gross floor area. There shall be a 300-foot distance separation between any two such establishments. Bars, taverns, and lounges located within a hotel and without direct grade-level Page 1 exposure and access to the building front setback area shall not be subject to the distance separation requirement. (5) Veterinarians and ancillary kennels fully enclosed. (6) Commercial jet skis and personal watercraft launching facilities. For the purpose of this Section, a personal watercraft is defined as a small, jet-powered craft, resembling a snowmobile in appearance and ridden like a motorcycle for individual use in water. (7) Commercial marinas or boat storage. (8) Non-motorized or motorized watercraft leasing or launching facilities. (Ord. No. 2012-393, §2, 10-18-2012) (9) Storage facilities. [Added 3-20-2014 by Ord. No. 2014-422] D. Uses prohibited. The permitted uses listed in this district shall not be construed to include, either as a principal or accessory use, any of the following: (1) Adult entertainment as defined in Article II. (2) Pawnshops. (3) Apartment-hotels. E. Site development standards. (1) Floor area ratio. Except as provided hereinbelow, the maximum floor area ratio shall be 2.0 for all uses. The floor area ratio may be increased only in accordance with the following bonus provisions and limitations and in accordance with the adopted Sunny Isles Beach Comprehensive Plan. (a) Enclosed parking bonus. The floor area ratios shall be increased by 0.40 for developments that provide 75% or more of the required on-site parking in enclosed structures that fully screen vehicles from exterior views. (b) Sunny Isles Beach public parking bonus. The floor area ratios shall be increased for developments that participate in the City's Beach Public Parking Trust Fund, as established and administered by the City for the purposes of implementing capital improvements for public parking. Public parking resources, in particular west of Collins Avenue, as a component of infrastructure improvements to facilitate public access to the oceanfront, are a policy objective of the adopted City of Sunny Isles Beach Comprehensive Plan. A bonus of 0.05 increase in the F.A.R. shall be granted for each participation unit contributed to the capital improvement fund designated for beach enhancements up to a maximum additional 0.25 F.A.R. bonus. A participation unit, for the purpose of the public parking trust fund bonus, shall be equal to $72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager. The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel. Additionally, the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. [Amended 12-13-2007 by Ord. No. 2007-292] (Ord. No. 2012-381, § 3, 2-16-2012) (c) Collins Avenue/Sunny Isles Boulevard public streetscape enhancement bonus. The floor area ratio shall be increased for developments that participate in the City's Public Streetscape Enhancement Trust Fund, as established and administered by the City for the purposes of implementing capital improvements. A bonus of 0.05 increase in the F.A.R. shall be granted for each participation unit contributed to the capital improvement trust fund Page 2 designated for beach enhancements, up to a maximum additional 0.30 F.A.R. bonus. A participation unit, for the purpose of the streetscape enhancement bonus, shall be equal to $72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager. The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel. Additionally, the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. [Amended 12-13-2007 by Ord. No. 2007-292] (Ord. No. 2012-381, § 3, 2-16-2012) (d) Site assembly bonus. For parcels over 20,000 square feet in area, the floor area ratio shall be increased by 0.05 for each additional 10,000 square feet of lot area, up to a maximum additional 0.50 FAR bonus. (2) Maximum dwelling unit density. The maximum dwelling unit density shall be as follows: (a) Apartments. Except as modified in Subsection E(3) below, the maximum number of residential dwelling units shall not exceed a density of 25 dwelling units per acre. (3) The maximum dwelling unit density shall be increased only in accordance with the following dwelling unit density bonus. provisions and limitations: (a) Dwelling unit density bonus. The maximum dwelling unit density may be increased by one dwelling unit per acre for each 0.02 increase in FAR granted in accordance with § 265- 36E(1) of the City Code, up to a maximum density of 80 dwelling units per acre. (b) Affordable housing density bonus. The maximum dwelling unit density with bonuses as provided in Subsection E(3)(a) above may increased by five units per acre to a maximum of 85 units per acre, provided the dwelling units achieved through this bonus comply with the affordable housing provisions of the Housing Element of the adopted Sunny Isles Beach Comprehensive Plan. (4) Maximum height of buildings abutting Atlantic Boulevard. (a) The maximum height of a building shall be 55 feet above the centerline of the street for the sites that have a property line contiguous with an R-1 or R-TH District. That portion of a building within 100 feet of an RMF-zoned property shall be limited to three feet of building height over 35 feet above grade for every one foot of distance from the RMF District. The maximum height shall not exceed 190 feet. (b) Buildings abutting Collins Avenue. The maximum height shall not exceed 190 feet. The height of a building shall be as follows: [1] For parcels with over 250 feet of depth, the maximum height for the building shall be 50 feet(four stories)for the first 130 feet set back from the front property line, 100 feet (eight stories)for the next 100 feet, then 190 feet(19 stories). [2] For parcels between 150 feet and 250 feet of depth, the maximum height for the building shall be 50 feet (four stories) for the first 100 feet set back from the front property line, then 190 feet (19 stories). [3] For parcels with less than 150 feet depth the maximum height for the building shall be 50 feet (four stories)for the first 50 feet set back from the front property line, then 190 feet(19 stories). (5) Lot coverage. The total lot coverage permitted for all buildings, including parking on the site, shall be 80%. (6) Minimum setbacks. (a) Front: Page 3 [1] Minimum of 25 feet for properties abutting Atlantic Boulevard. [2] Minimum of 25 feet for properties abutting Collins Avenue and which provide 15 feet of colonnade. [3] Minimum of 40 feet for properties abutting Collins Avenue and which do not provide 15 feet of colonnade. (b) Rear: minimum of five feet, except where the building abuts a residential district and Atlantic Boulevard, the setback shall be 15 feet. The setback shall be 25 feet where the building abuts Atlantic Boulevard. A minimum of 25 feet shall be required between openings (store front, windows, sliding glass doors in buildings, except for enclosed garage). Balconies may encroach a maximum of four feet into the setback. (c) Side: minimum of ten feet, except that where the building abuts a residential district, the setback shall be 15 feet. A minimum of 25 feet shall be required between openings (store front, windows, sliding glass doors in buildings, except for enclosed garage). Balconies may encroach a maximum of four feet into the setback. (7) Minimum lot width: 100 feet. (8) Landscaped open space. (a) A minimum of 20% of the lot area shall be landscaped and improved with pedestrian walkways, courtyards, street furniture, lighting and plantings. (b) All properties abutting Collins Avenue shall provide a ten-foot easement within the required front setback. The easement shall be dedicated to the City for the implementation of the Collins Avenue Streetscape Plan. The City shall use the easement to increase the pedestrian walk paths, landscaping purposes, placement of utility wires and any other municipal purposes. (9) Minimum lot area: 10,000 square feet. (10) Building separation on separate parcels abutting Collins Avenue. When there are two towers located on different property, a minimum separation of 50 feet shall be maintained between pedestals (50 feet or less in height) and a minimum separation of 100 feet shall be maintained between towers (above 50 feet in height). (a) When there are two or more towers on the same property, the building separation shall be a minimum of 50 feet between towers. (b) The maximum tower width shall be 200 feet. (11) Minimum unit size for hotel. (a) The minimum gross floor area for a hotel unit without a lockout room shall be 550 square feet and with a lockout room(s) shall be 750 square feet. Only one full kitchen facility is permitted per hotel unit, including the lockout, if any. (b) The minimum gross floor area for a lockout unit(room) shall be 350 square feet. (c) The minimum gross floor area for a hotel unit shall be 250 square feet. (d) For purposes of calculating the minimum required gross floor area of a unit, balconies may be included in such calculation but it shall not to exceed 15% percent of the total gross floor area of the unit. § 265-38.-Business Overlay District. [Added 2-16-2006 by Ord. No. 2006-245; amended 4-16-2009 by Ord. No. 2009-320] A. Purpose and intent. Page 4 (1) The Business Overlay District is established to encourage and provide locations for cultural and educational uses and facilities within the City of Sunny Isles Beach. The Business Overlay District is intended to be applied to and overlay the Mixed Use-Business Land Use category, outside of the Town Center District (TCD). This land use category is intended to provide services primarily for surrounding residential areas, neighboring communities and visitor populations in an environment oriented to the pedestrian and adjacent street frontages. The Business Overlay District is designed to supplement and complement the existing Neighborhood Business District (B-1) zoning category. If the Business Overlay District imposes a greater restriction than the underlying district regulations, the Business Overlay District shall control. (2) The additional purposes of the Business Overlay District established in this section are: (a) To provide incentives for the granting of right-of-way easements or dedications for public vehicular use and public pedestrian paths; (b) To encourage a convenient, balanced multi-modal transportation system; (c) To enhance continuous pedestrian paths and pedestrian mobility; (d) To promote transit usage and public access to parks and open space; (e) To promote the extension of North Bay Road to facilitate pedestrian and vehicular access from 183rd Street to 185th Street. B. Permitted uses. No building or structure, or part thereof, within the Business Overlay District shall be erected, altered or used, or land used in whole or in part for other than one or more of the following specific uses, subject to all other applicable standards and requirements contained in this section: (1) All uses permitted in RMF-1 District. (2) Retail uses. (3) Banks and financial institutions. (4) Conservatories and music and dance schools. (5) Art school. (6) Performing arts center; live theater. (7) Art gallery. (8) Health spas and studios. (9) Hotels. (10) Offices: Business, medical and professional. (11) Pet grooming and supplies with no kennels or overnight animal boarding. (12) Restaurants and coffee houses or dining rooms with incidental sales of alcoholic beverages. (13) Religious facilities. (14) Schools. (15) Post office and self-service postal stores for walk-up trade. (16) Telecommunications facilities. (17) Education learning centers. C. Conditional uses. (1) All conditional uses provided for in the RMF-1 and B-1 zoning districts. Page 5 (2) Commercial jet skis and personal watercraft launching facilities. For the purpose of this Section, a personal watercraft is defined as a small, jet-powered craft, resembling a snowmobile in appearance and ridden like a motorcycle for individual use in water. (3) Commercial marinas or boat storage. (4) Non-motorized or motorized watercraft leasing or launching facilities. (Ord. No. 2012-393, §2, 10-18-2012) (5) Gaming facilities and bingo halls. [Added 11-21-2013 by Ord. No. 2013-416] D. Prohibited uses. The permitted uses listed in this Business Overlay District shall not be construed to include, either as a principal or accessory use, any of the following: (1) Adult entertainment as defined in Article II. (2) Pawnshops. (3) Auto repair, gas stations, service stations, car washes. (4) Manufacturing facilities. (5) Wholesale, warehouse and distribution facilities. (6) Storage facilities. (7) Apartment hotels. E. Site development standards. (1) Floor area ratio. Except as provided hereinbelow, the maximum floor area ratio (FAR) shall be 2.0 for all uses. The FAR may be increased only in accordance with the following bonus provisions and limitations and in accordance with the adopted Sunny Isles Beach Comprehensive Plan. (a) Enclosed parking bonus. The FAR shall be increased by 0.40 for developments that provide 75% or more of the required on-site parking in enclosed structures fully screening vehicles from exterior views. (b) Sunny Isles Beach public parking bonus. The floor area ratio shall be increased for developments that participate in the City's Beach Public Parking Trust Fund, as established and administered by the City for the purposes of implementing capital improvements for public parking. Public parking resources, in particular west of Collins Avenue, as a component of infrastructure improvements to facilitate public access to the oceanfront, is a policy objective of the adopted City of Sunny Isles Beach Comprehensive Plan. A bonus of 0.05 increase in the FAR shall be granted for each "participation unit" contributed to the capital improvement fund designated for beach enhancements up to a maximum additional 0.25 FAR bonus. A "participation unit," for the purpose of the public parking trust fund bonus, shall be equal to $72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager. The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel. Additionally, the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. (Ord. No. 2012-381, §4, 2-16-2012) (c) Collins Avenue/Sunny Isles Boulevard public streetscape enhancement bonus. The FAR shall be increased for developments that participate in the City's Public Streetscape Enhancement Trust Fund, as established and administered by the City for the purposes of implementing capital improvements. A bonus of 0.05 increase in the FAR shall be granted for each "participation unit" contributed to the capital improvements trust fund designated Page 6 for beach enhancements up to a maximum additional 0.30 FAR bonus. A "participation unit,"for the purpose of the streetscape enhancement bonus, shall be equal to $72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager. The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel. Additionally, the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. (Ord. No. 2012-381, §4, 2-16-2012) (d) Site assembly bonus. For parcels over 20,000 square feet in area, the FAR shall be increased by 0.05 for each additional 10,000 square feet of lot area up to a maximum additional 0.50 FAR bonus. (2) Maximum dwelling unit density. The maximum dwelling unit density shall be as follows: [Amended 9-19-2013 by Ord. No. 2013-411] (a) Apartments. Except as modified in Subsection E(3) below, the maximum number of residential dwelling units shall not exceed a density of 25 dwelling units per acre. (3) Dwelling unit density bonus. The maximum dwelling unit density shall be increased only in accordance with the following provisions and limitations: (a) Dwelling unit density bonus. The maximum dwelling unit density may be increased by one dwelling unit per acre for each 0.02 increase in FAR granted in accordance with § 265- 36E(1) of the City Code up to a maximum density of 80 dwelling units per acre. (b) Affordable housing density bonus. The maximum dwelling unit density with bonuses as provided in Subsection E(3)(a)above may increased by ten units per acre to a maximum of 85 units per acre, provided the dwelling units achieved through this bonus comply with the affordable housing provisions of the housing element of the adopted Sunny Isles Beach Comprehensive Plan. (4) Buildings abutting 185th Street. Except as provided below in Subsection E(4)(a), the maximum height of a building shall be 55 feet above the center line of the street for the sites that have a property line contiguous with an R-1 or R-TH District. That portion of a building within 100 feet of an RMF-zoned property shall be limited to three feet of building height over 35 feet above grade for every one foot of distance from the RMF District. The maximum height shall not exceed 190 feet. [Amended 12-14-2006 by Ord. No. 2006-272] (a) Land dedication height bonus. Owners of land parcels within the Business Overlay District may dedicate land by easement to the City for use as a right-of-way in return for an increase in the overall permitted height in the Business Overlay District. Permitted height may be increased at the rate of 1.5 feet of height for each foot of width of public right-of- way that is dedicated to the City. The maximum width of the right-of-way shall not exceed 50 feet. Such easements shall be recorded in the public records and maintained as easements in perpetuity. The City Commission shall have the discretion to accept or reject the dedication depending on whether it will enhance pedestrian mobility and vehicular access, ease traffic congestion, and is otherwise in the best interest of the City. The maximum height shall not exceed 265 feet. Notwithstanding the foregoing, sites that have a property line contiguous with an RMF-zoned property shall comply with Subsection E(4) above. (b) Street-level pedestrian promenade bonus. An owner of land adjacent to an R1, R-TH or RMF-1 zoned property may dedicate a public pedestrianway easement of not less than 20 feet in width to the City. Dedication of this easement, after approval by the City Commission, shall entitle the property owner to a 0.10 FAR bonus in accordance with § 265-36E(1) of the City Code. Page 7 (c) Dedicated land. Land dedicated pursuant to Subsections E(4)(a) and (b) shall be calculated as part of the lot's area for purposes of determining permitted density and floor area as well as compliance with all zoning requirements. (d) Building abutting Collins Avenue. Except as provided in Subsection E(4)(a) above, the maximum height shall not exceed 190 feet. The maximum height of a building shall be as follows: [1] For parcels with over 250 feet of depth, the maximum height for the building shall be 50 feet (four stories)for the first 130 feet set back from the front property line, 100 feet (eight stories)for the next 100 feet, then 190 feet(19 stories). [2] For parcels between 150 feet and 250 feet of depth, the maximum height for the building shall be 50 feet (four stories) for the first 100 feet set back from the front property line; for the remaining dept of the parcel the building height permitted is 190 feet for a maximum overall height of 19 stories. [3] For parcels with less than 150 feet of depth, the maximum height for the building shall be 50 feet (four stories) for the first 50 feet set back from front property line, then 190 feet(19 stories). (5) Minimum setbacks. [Amended 12-14-2006 by Ord. No. 2006-272] (a) Front: [1] Minimum of 25 feet for properties abutting Atlantic Boulevard. [2] Minimum of 25 feet for properties abutting Collins Avenue and which provide 15 feet of colonnade. [3] Minimum of 40 feet for properties abutting Collins Avenue and which do not provide 15 feet of colonnade. (b) Rear: Minimum of five feet, except where the building abuts a residential district and Atlantic Boulevard, the setback shall be 15 feet. The setback shall be 25 feet where the building abuts Atlantic Boulevard. A minimum of 25 feet shall be required between openings (store front, windows, sliding glass doors in buildings, except for enclosed garage). Balconies may encroach a maximum of four feet into the setback. (c) Side: Minimum of ten feet, except that where the building abuts a residential district, the setback shall be 15 feet. A minimum of 25 feet shall be required between openings (store front, windows, sliding glass doors in buildings, except for enclosed garage). Balconies may encroach a maximum of four feet into the setback. (6) Minimum lot width: 100 feet. [Amended 12-14-2006 by Ord. No. 2006-272] (7) Landscaped open space. [Amended 12-14-2006 by Ord. No. 2006-272] (a) A minimum of 20% of the lot area shall be landscaped and improved with pedestrian walkways, courtyards, street furniture, lighting and plantings. (b) All properties abutting Collins Avenue shall provide a ten-foot easement within the required front setback. The easement shall be dedicated to the City for the implementation of the Collins Avenue Streetscape Plan. The City shall use the easement to increase the pedestrian walk paths, landscaping purposes, placement of utility wires and any other municipal purposes. (8) Lot coverage. The total lot coverage permitted for all buildings, including parking on the site, shall be 80%. Page 8 [Amended 12-14-2006 by Ord. No. 2006-272] (9) Minimum lot area: 10,000 square feet. [Amended 12-14-2006 by Ord. No. 2006-272] (10) Building separation on separate parcels abutting Collins Avenue. When there are two towers located on different property, a minimum separation of 50 feet shall be maintained between pedestals (50 feet or less in height) and a minimum separation of 100 feet shall be maintained between towers (above 50 feet in height). [Added 12-14-2006 by Ord. No. 2006-272] (a) When there are two or more towers on the same property, the building separation shall be a minimum of 50 feet between towers. (b) The maximum tower width shall be 200 feet. F. Boundaries of district. The boundaries of the Business Overlay District shall be 185th Street on the north and 178th Street on the south. Collins Avenue on the east, Atlantic Boulevard and the Intracoastal Waterway on the west. G. Amendment of Zoning Map. The City's Zoning Map shall be amended to reflect the Business Overlay Zoning District. Page 9 ADDENDA DEMOGRAPHICS Clobus, McLemore & Duke, Inc. • l esri. Household Income Profile ' 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 ;r % , Ring: 1 mile radius o u! 3 1 i,2 2014-2019 2014-2019 Summary 2014 2019 Change Annual Rate Population 26,768 29,067 2,299 1.66% Households 12,948 13,991 1,043 1.56% Median Age 47.3 48.7 1.4 0.59% Average Household Size 2.07 2.08 0.01 0.10% 2014 2019 Households by Income Number Percent Number Percent Household 12,948 100% 13,991 100% <$15,000 2,530 19.5% 2,438 17.4% $15,000-$24,999 1,232 9.5% 967 6.90/0 $25,000-$34,999 1,015 7.8% 889 6.4% $35,000-$49,999 1,663 12.8% 1,713 12.2% $50,000-$74,999 2,440 18.8% 2,780 19.9% $75,000-$99,999 1,254 9.7% 1,643 11.7% $100,000-$149,999 1,157 8.9% 1,417 10.1% $150,000-$199,999 465 3.6% 634 4.5% $200,000+ 1,192 9.2% 1,510 10.8% Median Household Income $50,227 $56,669 Average Household Income $79,450 $94,314 Per Capita Income $38,568 $45,549 Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 esriHousehold Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 -;_ Ring: 1 mile radius 2014 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 389 1,552 2,122 2,078 2,087 2,093 2,627 <$15,000 141 324 278 263 374 411 738 $15,000-$24,999 35 127 181 138 139 195 417 $25,000-$34,999 22 119 158 124 137 195 260 $35,000-$49,999 60 233 348 256 255 217 295 $50,000-$74,999 84 317 418 422 387 403 408 $75,000-$99,999 23 191 257 233 212 153 185 $100,000-$149,999 12 127 198 250 209 198 162 $150,000-$199,999 7 51 89 110 79 80 49 $200,000+ 5 62 193 281 295 241 114 Median HH Income $33,092 $47,681 $54,027 $62,803 $56,794 $51,173 $30,471 Average HH Income $42,373 $63,851 $83,583 $100,642 $97,001 $86,456 $54,527 ' Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 36.2% 20.9% 13.10/0 12.7% 17.9% 19.6% 28.1% $15,000-$24,999 9.0% 8.2% 8.5% 6.6% 6.7% 9.3% 15.9% $25,000-$34,999 5.7% 7.7% 7.4% 6.0% 6.6% 9.3% 9.9% $35,000-$49,999 15.4% 15.0% 16.4% 12.3% 12.2% 10.40/0 11.2% $50,000-$74,999 21.6% 20.4% 19.7% 20.3% 18.5% 19.3% 15.5% $75,000-$99,999 5.9% 12.3% 12.1% 11.2% 10.2% 7.3% 7.0% $100,000-$149,999 3.1% 8.2% 9.3% 12.0% 10.0% 9.5% 6.2% $150,000-$199,999 1.8% 3.3% 4.2% 5.3% 3.8% 3.8% 1.9% $200,000+ 1.3% 4.0% 9.1% 13.5% 14.1% 11.5% 4.3% Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 CDeHousehold Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 „• 12;':, Ring: 1 mile radius 2019 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 404 1,606 2,018 2,258 2,322 2,410 2,974 <$15,000 129 305 227 230 350 420 776 $15,000-$24,999 27 101 122 109 107 144 357 $25,000-$34,999 19 110 124 102 117 179 239 $35,000-$49,999 66 234 316 250 262 231 353 $50,000-$74,999 100 341 416 462 436 494 530 $75,000-$99,999 31 230 303 304 289 220 265 $100,000-$149,999 14 134 210 302 267 270 220 $150,000-$199,999 10 70 94 148 112 119 80 $200,000+ 7 80 207 349 381 332 152 Median HH Income $39,817 $52,589 $60,708 $73,077 $66,663 $59,162 $38,905 Average HH Income $49,692 $72,042 $94,663 $118,345 $117,857 $107,001 $65,225 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 31.9% 19.0% 11.2% 10.2% 15.1% 17.4% 26.1% $15,000-$24,999 6.7% 6.3% 6.0% 4.8% 4.6% 6.0% 12.0% $25,000-$34,999 4.7% 6.8% 6.1% 4.5% 5.0% 7.4% 8.0% $35,000-$49,999 16.3% 14.6% 15.7% 11.1% 11.3% 9.6% 11.9% $50,000-$74,999 24.8% 21.2% 20.6% 20.5% 18.8% 20.5% 17.8% $75,000-$99,999 7.7% 14.3% 15.0% 13.5% 12.4% 9.1% 8.9% $100,000-$149,999 3.5% 8.3% 10.4% 13.4% 11.5% 11.2% 7.4% $150,000-$199,999 2.5% 4.4% 4.7% 6.6% 4.8% 4.9% 2.7% $200,000+ 1.7% 5.0% 10.3% 15.5% 16.4% 13.8% 5.1% Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 14 >: esriHousehold Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 -. - Ring: 3 mile radius , 2014-2019 2014-2019 Summary 2014 2019 Change Annual Rate Population 106,054 113,435 7,381 1.35% Households 48,650 51,940 3,290 1.32% Median Age 45.3 46.7 1.4 0.61% Average Household Size 2.17 2.17 0.00 0.00% 2014 2019 Households by Income Number Percent Number Percent Household 48,650 100% 51,940 100% <$15,000 8,861 18.2% 8,567 16.50/0 $15,000-$24,999 5,974 12.3% 4,533 8.7% $25,000-$34,999 4,555 9.4% 3,853 7.4% $35,000-$49,999 6,561 13.5% 6,776 13.0% $50,000-$74,999 8,308 17.1% 9,686 / 18.6% $75,000-$99,999 4,707 9.7% 6,239 12.0% $100,000-$149,999 4,773 9.8% 5,855 11.3% $150,000-$199,999 1,770 3.6% 2,444 4.7% $200,000+ 3,141 6.5% 3,987 7.7% Median Household Income $45,369 $54,153 Average Household Income $71,272 $83,832 Per Capita Income $32,803 $38,492 Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 Fsn `- , ! esri� Household Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 _ Ring: 3 mile radius __ 121.2',= 2014 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 1,472 6,068 7,975 8,422 8,246 7,463 9,005 <$15,000 435 1,058 1,002 1,112 1,578 1,415 2,260 $15,000-$24,999 225 613 743 659 780 1,094 1,860 $25,000-$34,999 138 595 772 637 673 791 950 $35,000-$49,999 204 934 1,293 1,033 1,053 940 1,105 $50,000-$74,999 282 1,131 1,435 1,659 1,414 1,214 1,174 $75,000-$99,999 100 767 947 851 767 584 691 $100,000-$149,999 65 588 802 1,147 867 708 597 $150,000-$199,999 14 211 403 460 333 222 126 $200,000+ 9 171 579 865 780 495 243 Median HH Income $29,856 $46,564 $52,141 $59,160 $50,456 $40,766 $28,386 Average HH Income $40,527 $62,258 $79,226 $91,525 $81,773 $69,039 $48,613 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 29.6% 17.4% 12.6% 13.2% 19.1% 19.0% 25.1% $15,000-$24,999 15.3% 10.1% 9.3% 7.8% 9.5% 14.7% 20.7% $25,000-$34,999 9.4% 9.8% 9.7% 7.6% 8.2% 10.6% 10.5% $35,000-$49,999 13.9% 15.40/0 16.2% 12.3% 12.8% 12.6% 12.3% $50,000-$74,999 19.2% 18.6% 18.0% 19.7% 17.1% 16.3% 13.0% $75,000-$99,999 6.8% 12.6% 11.9% 10.1% 9.3% 7.8% 7.7% $100,000-$149,999 4.4% 9.7% 10.1% 13.6% 10.5% 9.5% 6.6% $150,000-$199,999 1.0% 3.5% 5.1% 5.5% 4.0% 3.0% 1.4% $200,000+ 0.6% 2.8% 7.3% 10.3% 9.5% 6.6% 2.7% Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 • I/ ! esri Household Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 Ring: 3 mile radius , _ " , 2019 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 1,535 6,144 7,700 8,583 8,983 8,632 10,363 <$15,000 412 942 820 929 1,480 1,500 2,484 $15,000-$24,999 166 451 498 445 570 863 1,541 $25,000-$34,999 117 487 579 479 565 733 893 $35,000-$49,999 223 917 1,183 947 1,094 1,058 1,354 $50,000-$74,999 358 1,251 1,495 1,772 1,642 1,580 1,589 $75,000-$99,999 141 938 1,131 1,049 1,045 866 1,068 $100,000-$149,999 84 647 869 1,301 1,096 983 875 $150,000-$199,999 21 301 472 597 477 353 223 $200,000+ 13 211 652 1,064 1,013 696 337 Median HH Income $38,850 $53,863 $60,399 $69,587 $59,530 $51,746 $37,239 Average HH Income $47,516 $70,865 $91,063 $108,744 $98,439 $83,787 $58,268 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 26.8% 15.3% 10.6% 10.8% 16.5% 17.4% 24.0% $15,000-$24,999 10.8% 7.3% 6.5% 5.2% 6.3% 10.0% 14.9% $25,000-$34,999 7.6% 7.9% 7.5% 5.6% 6.3% 8.5% 8.6% $35,000-$49,999 14.5% 14.9% 15.4% 11.0% 12.2% 12.3% 13.1% $50,000-$74,999 23.3% 20.4% 19.4% 20.6% 18.3% 18.3% 15.3% $75,000-$99,999 9.2% 15.3% 14.7% 12.2% 11.6% 10.0% 10.3% $100,000-$149,999 5.5% 10.5% 11.3% 15.2% 12.2% 11.40/0 8.4% $150,000-$199,999 1.4% 4.9% 6.1% 7.0% 5.3% 4.1% 2.2% $200,000+ 0.8% 3.4% 8.5% 12.4% 11.3% 8.1% 3.3% Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 esri. Household Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 Ring: 5 mile radius __ 2014-2019 2014-2019 Summary 2014 2019 Change Annual Rate Population 289,199 306,591 17,392 1.17% Households 120,375 127,656 7,281 1.18% Median Age 41.9 42.7 0.8 0.38% Average Household Size 2.38 2.38 0.00 0.00% 2014 2019 Households by Income Number Percent Number Percent Household 120,370 100% 127,651 100% <$15,000 22,350 18.6% 21,929 17.2% $15,000-$24,999 16,794 14.0% 12,889 10.1% $25,000-$34,999 13,590 11.3% 11,683 9.2% $35,000-$49,999 17,935 14.9% 18,870 14.8% $50,000-$74,999 21,085 17.5% 24,897 19.5% $75,000-$99,999 10,482 8.7% 14,127 11.1% $100,000-$149,999 9,106 7.6% 11,341 8.9% $150,000-$199,999 3,501 2.9% 4,843 3.8% $200,000+ 5,527 4.6% 7,071 5.5% Median Household Income $40,063 $48,375 Average Household Income $62,031 $72,336 Per Capita Income $25,872 $30,140 Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 esriHousehold Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 ; ;i 2_ 91-2:.'. Ring: 5 mile radius _ i . 2_; 2014 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 4,012 15,940 20,526 22,886 22,384 17,030 17,592 <$15,000 1,257 2,862 2,697 3,154 4,462 3,425 4,494 $15,000-$24,999 755 2,036 2,289 2,154 2,556 2,865 4,139 $25,000-$34,999 508 2,035 2,426 2,303 2,250 2,126 1,943 $35,000-$49,999 538 2,548 3,516 3,196 3,233 2,608 2,296 $50,000-$74,999 613 2,955 3,908 4,735 4,119 2,638 2,118 $75,000-$99,999 198 1,663 2,160 2,237 1,923 1,148 1,155 $100,000-$149,999 108 1,133 1,632 2,404 1,767 1,134 928 $150,000-$199,999 20 413 795 996 710 380 187 $200,000+ 17 296 1,103 1,707 1,365 706 332 Median HH Income $24,901 $39,910 $46,315 $52,253 $42,748 $35,402 $25,640 Average HH Income $34,548 $54,233 $69,378 $78,667 $67,609 $56,660 $43,254 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 31.3% 18.0% 13.1% 13.8% 19.9% 20.1% 25.5% $15,000-$24,999 18.8% 12.8% 11.2% 9.4% 11.4% 16.8% 23.5% $25,000-$34,999 12.7% 12.8% 11.8% 10.1% 10.1% 12.5% 11.0% $35,000-$49,999 13.4% 16.0% 17.1% 14.0% 14.4% 15.3% 13.1% $50,000-$74,999 15.3% 18.5% 19.0% 20.7% 18.4% 15.5% 12.0% $75,000-$99,999 4.9% 10.4% 10.5% 9.8% 8.6% 6.7% 6.6% $100,000-$149,999 2.7% 7.1% 8.0% 10.5% 7.9% 6.7% 5.3% $150,000-$199,999 0.5% 2.6% 3.9% 4.4% 3.2% 2.2% 1.1% $200,000+ 0.4% 1.9% 5.4% 7.5% 6.1% 4.1% 1.9% Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 rsri I esri Household Income Profile 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 18080 Collins Ave, Sunny Isles Beach, Florida, 33160 Ring: 5 mile radius t_L_, 2019 Households by Income and Age of Householder <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 4,136 16,654 19,901 22,450 23,981 20,206 20,323 <$15,000 1,246 2,671 2,295 2,632 4,197 3,810 5,078 $15,000-$24,999 571 1,576 1,568 1,423 1,860 2,390 3,500 $25,000-$34,999 448 1,734 1,880 1,726 1,908 2,098 1,889 $35,000-$49,999 605 2,656 3,306 2,872 3,376 3,170 2,886 $50,000-$74,999 790 3,501 4,239 5,002 4,859 3,611 2,896 $75,000-$99,999 279 2,191 2,644 2,727 2,652 1,792 1,842 $100,000-$149,999 143 1,304 1,845 2,702 2,290 1,652 1,406 $150,000-$199,999 29 622 899 1,280 1,037 642 333 $200,000+ 25 399 1,224 2,088 1,801 1,040 493 Median HH Income $29,917 $47,691 $53,676 $60,213 $52,252 $42,297 $33,009 Average HH Income $39,956 $62,122 $78,763 $93,514 $81,093 $67,876 $51,710 Percent Distribution <25 25-34 35-44 45-54 55-64 65-74 75+ HH Income Base 100% 100% 100% 100% 100% 100% 100% <$15,000 30.1% 16.0% 11.5% 11.7% 17.5% 18.9% 25.0% $15,000-$24,999 13.8% 9.5% 7.9% 6.3% 7.8% 11.8% 17.2% $25,000-$34,999 10.8% 10.40/0 9.4% 7.7% 8.0% 10.4% 9.3% $35,000-$49,999 14.6% 15.9% 16.6% 12.8% 14.1% 15.7% 14.2% $50,000-$74,999 19.1% 21.0% 21.3% 22.3% 20.3% 17.9% 14.2% $75,000-$99,999 6.7% 13.2% 13.3% 12.1% 11.1% 8.9% 9.1% $100,000-$149,999 3.5% 7.8% 9.3% 12.0% 9.5% 8.2% 6.9% $150,000-$199,999 0.7% 3.7% 4.5% 5.7% 4.3% 3.2% 1.6% $200,000+ 0.6% 2.4% 6.2% 9.3% 7.5% 5.1% 2.4% Data Note:Income reported for July 1,2019 represents annual income for the preceding year,expressed in current(2018)dollars,including an adjustment for inflation. Source:U.S.Census Bureau,Census 2010 Summary File 1.Esri Forecasts for 2014 and 2019. February 25, 2015 ADDENDA QUALIFICATIONS Clobus, McLemore & Duke, Inc. MARINA MILE BUSINESS PARK 2860 MARINA MILE,SUITE 109 opus FORT LAUDERDALE,FLORIDA 33312 f��cl more j D U k TELEPHONE(954)587-2701 c O Ir?r J at f i FACSIMILE(954)587-2702 WEBSITE www.cmdflorida.com MIAMI-FORT LAUDERDALE-WEST PALM BEACH-KEY WEST DIRECT LINE(954)854-2044 EMAIL dukel0lcmdflorida.corn Walter B.Duke,III,MAI,CCIM STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ375 QUALIFICATIONS OF WALTER B. DUKE, III, MAI, CCIM EDUCATION University of Florida, Gainesville, Florida Major in Real Estate B.S. Degree in Business Administration Appraisal Institute, American Institute of Real Estate Appraisers and Society of Real Estate Appraisers core course, electives,seminars and comprehensive examination. APPRAISAL/REAL ESTATE EXPERIENCE 1992—Present President, CEO and sole shareholder, Clobus, McLemore&Duke, Inc. 1988—1992 Senior Appraiser, Clobus Valuation Co., Inc. 1985—1987 Staff Appraiser, Clobus Valuation Co., Inc. 1983— 1984 Broker-Salesperson, Carmel Bay Realty Appraisal assignments include the valuation and/or evaluation of a wide variety of commercial, residential and industrial properties in Florida prepared for banks, savings and loans, savings bank, insurance companies, estates, governmental agencies, REIT's, mortgage bankers, attorneys and individual investors. Property types include, but are not limited to, proposed and existing office buildings, commercial condominiums, warehouse and industrial properties, shopping centers and retail development, market and tax credit apartments, acreage tracts, commercial/industrial land and special purpose properties including marinas, boatyards, religious and/or educational facilities,fixed base operations(FBO). Qualified Real Estate Valuation Expert Witness: U.S. Bankruptcy Court, Southern District of Florida 17th Judicial Circuit Court, Broward County PROFESSIONAL AND CIVIC AFFILIATIONS MAI—Member,Appraisal Institute, No. 8584 CCIM—Certified Commercial Investment Member No. 7130 Registered Real Estate Broker-Salesperson—State of Florida, No. 0398146 Certified General Real Estate Appraiser—State of Florida, No. RZ375 Member—Review and Counseling Division—Region X South Florida-Caribbean Chapter of Appraisal Institute: President 2000, 2nd Vice President 1999, Secretary 1998, Treasurer 1997 Regional Representative: Region X City Commissioner—City of Dania Beach(2009-2012) Mayor—City of Dania Beach(2012-current) Leadership Fort Lauderdale—Class IV, 1998 Appraisal Institute-Leadership Advisory Council, 1997 Institute Affiliate Member—Realtor Association of Greater Fort Lauderdale Member—Society of Commercial Realtors of Greater Fort Lauderdale Member—International Council of Shopping Centers(ICSC) Member—Appraisal Journal Editorial Review Board Member—Marine Industries Association of Florida(MIAF) Member—Marine Industries Association of South Florida(MIASF) Member—Governmental Affairs Board, RAGFL Member—Broward County Metropolitan Planning Organization RECERTIFICATION AND CONTINUING EDUCATION The Appraisal Institute conducts a voluntary program of continuing education for its designated members. MAls and SRAs who meet the minimum standards of this program are awarded periodic education certification. I am currently certified under this program. MARINA MILE BUSINESS PARK 2860 MARINA MILE,SUITE 109 O•us FORT LAUDERDALE,FLORIDA 33312 McL..l I re \^� Dukr, TELEPHONE(954)587-2701 r C - a t rj FACSIMILE(954)587-2702 WEBSITE www.cmdflorida.com MIAMI-FORT LAUDERDALE-WEST PALM BEACH-KEY WEST DIRECT LINE(954)854-2044 EMAIL duke( cmdflorida.com Walter B.Duke,III,MAI,CCIM STATE-CERTIFIED GENERAL REAL ESTATE APPRAISER RZ375 QUALIFICATIONS OF STEPHEN A. KUHN EDUCATION University of Florida, Gainesville, Florida Bachelor of Science Degree—2002 Major—Finance Appraisal Institute, Gold Coast Professional Schools and Bert Rodgers Schools appraisal certification courses, continuing education, seminars and comprehensive examination. APPRAISAL/REAL ESTATE EXPERIENCE 11/2004—Present General Appraiser, Clobus, McLemore&Duke, Inc. 05/2004—11/2004 Assistant Appraiser, Diversified Real Estate Consulting Corporation 11/2002—03/2004 Sales Associate, NAI Rauch, Weaver, Norfleet, Kurtz & Co. Appraisal assignments include the valuation and/or evaluation of a wide variety of commercial, residential and industrial properties in Florida prepared for banks, savings and loans, savings bank, insurance companies, estates, governmental agencies, REIT's, mortgage bankers, attorneys and individual investors. Property types include, but are not limited to, proposed and existing office buildings, shopping centers and retail development, warehouses and industrial properties, rental apartment projects, commercial and residential condominium projects, commercial/industrial land, acreage tracts, and special purpose properties including marinas and religious and/or educational facilities. PROFESSIONAL AFFILIATIONS State-Certified General Real Estate Appraiser—State of Florida No. RZ3157 Real Estate Salesperson—State of Florida No. SL-3035062 I ADDENDA LICENSES RICK SCOTT,GOVERNOR KEN LAWSON,SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION ,, e FLORIDA REAL ESTATE APPRAISAL BD .� I I; ,, LICENSE NUMBER - y+, :� s �"'c RZ97b .. _. The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED Under the provisions of Chapter 475 FS. Expiration date: NOV 30,2016 ti. �U DUKE,WALTER BRYAN III . .. • ❑ • ❑ 2860 WEST STATE ROAD.' ° ''fT ` STE 109 L FT LAUDERDALE ._.F 3313 ,ti,. Ih .��... ISSUED: 09/08/2014 DISPLAY AS REQUIRED BY SEW/ 11409080002552 RICK SCOTT GOVERNOR KEN LAWSON,SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION y-11,, FLORIDA REAL ESTATE APPRAISAL BD ,#+> . p`'y„ LICENSE NUMBER y, R7-3157 4, -- The CERTIFIED GENERAL APPRAISER _ Named below IS CERTIFIED 4,-. 1 Under the provisions of Chapter 475 FS. Expiration date: NOV 30,2016 , ° .011141 ❑KUHN,STEPHEN ANTHON , '- Y • V 5906 ROYAL WAY . -,�TAMARAC _FL33321", .. ,,N- .;, ., ` � f r M \:,:-....\\:". ISSUED: 12/02/2014 DISPLAY AS REQUIRED BY LAW SEQ 1 11412020001955 Clobus, McLemore & Duke, Inc. Opus Mc ..- :ore Dukes l]e r g C o _ 1 at- {;; Partial Client List BANKS/LENDERS The Private Bank City of Miramar MORTGAGE/WALL STREET American National Bank Total Bank City of Oakland Park Ackman Ziff Amerinational U.S.Bank City of Sunny Isles Beach AGM Financial Anglo Irish Bank U.S.Century Bank City of Sunrise ASB Capital Management,Inc. Bank Leumi United National Bank City of Wilton Manors Aztec Group Bank of America,N.A. Valley View Bank Florida Housing Finance Corp. Berkadia Bank of Florida Wells Fargo Bank Miami Parking Authority Berkshire Mortgage Finance Bank Midwest Zeigler Capital Markets Miami-Dade Housing Authority Chrysler Credit Corporation Bank United,F.S.B. Palm Beach Housing Authority CIBC World Markets Banesco USA DEVELOPERS/INVESTORS School Board of Broward County Dockerty&Romer BB&T 13TH Floor Investments Southwest Ranches Florida Bond&Mortgage BBCN Bank Allen Morris Commercial Real Estate United Companies Lending Co. Gross Mortgage Finance BBVA/Compass Bank Altman Development United States Department of Justice Guggenheim Pillar Multifamily Builder's Bank American Land Company Holliday Fenoglio Fowler,L.P. Busey Bank Bergeron Development INSTITUTIONAL InterBay Funding Capital Bank Brandon Companies American Maritime Officers(AMO) Mercury Capital Corporation Capital One Bank Bridge Development Archdioceses of Miami Merrill Lynch Capital Capital Source Bank Cornerstone Group Boca Raton Community Hospital Midland Funding CLI Capital Easton&Associates Dan Marino Foundation Morgan Stanley Mortgage Capital Citibank,F.S.B. Flagler/Codina Development First Housing Corporation Northmarq Capital City National Bank Gatlin Development Company Florida Inland Navigation District Norwest Financial Corp. CNL Bank Harbour Realty Advisors,Inc. Holy Cross Hospital Thomas D.Wood&Company Coconut Grove Bank IBI Memorial Healthcare Systems Walker&Dunlop Comerica Ireland Companies Nova Southeastern University Commerce Bank,N.A. Lincoln Property Company South Florida Hospital District Credit Suisse Mill Creek Residential Trust Urban League Eastern Savings Bank M.R.McTigue&Co ECCU New Urban Development LIFE COMPANIES EverBank Olen Properties AEGON USA Realty Advisors Fidelity Bank of Florida Opus South Corporation Aetna Life Insurance Fifth Third Bank Pinnacle Housing Group Allstate Life Insurance Company First National Bank of South Miami RAM Real Estate Development Berkshire Life Insurance Co. First Republic Bank Red Apple Development Genworth Financial Florida Shores Bank Related Companies Great American Life Insurance Co. First United Bank Ross Realty Investments Guardian Life Insurance Flagler Bank Stiles Corporation ING Life Insurance Floridian Community Bank Summit Properties John Hancock Mutual Life Florida Community Bank Taplin Companies Life of Georgia Insurance Co. GE Capital Tate Development Lincoln National Life Ins.Co. Gibraltar Private Bank&Trust The Brookdale Group Met Life Mortgage Grand Bank and Trust of Florida Trinsic Residential Group Mutual Life Insurance Co. Heartland Bank Tumberry Associates Nationwide Life Insurance HSBC Bank USA Woolbright Development New York Life Hudson Valley Bank ZOM Companies New England Mutual Life Iberia Bank Northwestern Mutual Life International Finance Bank CORPORATE/COMPANIES Principal Real Estate Investors Ironstone Bank Art Institute Provident Mutual J.P.Morgan Chase Bank,N.A. AutoNation Prudential Insurance Corporation Key Bank,N.A. Bradford Marine State Farm Life Insurance Landmark Bank Budget Rent-A-Car Corporation Thrivent Financial for Lutherans Legacy Bank Huizenga Holdings TransAmerica Life Mercantile Bank Lowes Home Centers Mercantile Commerce Bank Pantropic Power LAW FIRMS Northern Trust Bank of Florida Seminole Indian Tribe of Florida Abrams,Anton P.A. Oak Grove Capital Tampa Electric(TECO) Akerman Ocean Bank The Law Olas Companies Amstein&Lehr OptimumBank Wintrust Financial Beloff,Parker,Jacobs PNC Bank Berger&Davis Popular Community Bank GOVERNMENT/MUNICIPAL Buchanan Ingersoll&Rooney PC RBC Bank Broward County Housing Authority Cooney Trybus Kwavnick Peets Regions Bank Broward County Property Appraiser Dunay,Miskel,Backman and Blattner Sabadell United Bank Broward County,Florida Frank Weinberg&Black,PL Safra National Bank of New York City of Boca Raton Greenberg Traurig Seacoast National Bank City of Deerfield Beach Hackelman,Olive&Judd Seltzer Management Group City of Fort Lauderdale Kirschbaum,Birnbaum,et al Stonegate Bank City of Hallandale Beach Moskowitz,Mandell,Salim&Simowitz Sunniland Bank City of Hollywood Rice,Pugatch,Robinson&Schiller SunTrust Bank City of Lake Park Saavedra Goodwin Textron Financial City of Margate Shutts&Bowen,LLP TD Bank City of Miami Parking Authority White&Case,LLP AN APPRAISAL REPORT OF A COMMERCIAL PROPERTY LOCATED AT 18080 COLLINS AVENUE, SUNNY ISLES BEACH, FLORIDA 33160 Appraisal No. 02-15-65 FOR Mr. Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue, 4th FL Sunny Isles Beach, FL 33160 BY APPRAISALFIRST REAL ESTATE APPRAISERS LLC 1444 Biscayne Boulevard, Suite 211 Miami, Florida 33132 AppraisalFirst Real Estate Appraisers LLC PI 1444 Biscayne Boulevard, Suite 211 Miami,Florida 33132 Phone: 305-470-2100 Fax: 305-381-8047 E-mail:residential(a.appraisalfirst.net E-mail:commercialciappraisalfirst.net February 5, 2015 Mr. Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue, 4th FL Sunny Isles Beach, FL 33160 Re: A commercial property located at 18080 Collins Avenue, Sunny Isles Beach,Florida 33160. Dear Mr. Ottinot: As requested, I have prepared the attached appraisal report of the above referenced property. The purpose of the report is to estimate the market value of the subject property. This is an Appraisal Report which is intended to comply with reporting requirements set forth under Standards Rule 2- 2(a) of the Uniform Standards of Professional Appraisal Practice(2014-2015). Under the previous USPAP for 2012-2013 the report would have been described as a Summary Report. The value opinion reported is qualified by certain definitions, limiting conditions and certifications which are set forth on pages 25 through 27 of this report. The report presumes no hypothetical conditions. The extraordinary assumptions pertaining to potential lease encumbrances is stated herein. This appraisal report is in compliance with the minimum standards of the Uniform Standards of Professional Appraisal Practice (USPAP 2014-2015), Title XI of FIRREA and Department of the Treasury Interagency Appraisal and Evaluation Guidelines. I have not provided professional services related to the subject property, as an appraiser or in another capacity, within the prior three years. Mr. Hans Ottinot Page Two The intended use of the appraisal report will be to aid the client in establishing a fair purchase price for the subject property. The intended users is the client stated herein. The appraiser has previously provided consultation and value estimates for properties similar to the subject property throughout the South Florida region. As such, the appraiser is in compliance with the competency provision contained within USPAP.A copy ofthe appraiser qualifications is included in the addenda. The subject property includes a 44,743 square foot,commercially zoned,parcel of land located along the west side of Collins Avenue, at 180t Street, lying within the incorporated City of Sunny Isles Beach,Florida. The property is improved with a small commercial building that was completed in 1962. The 1,377 square foot building and property is currently used in conjunction with an Alamo Car Rental Agency. The client has a requested a market value for the underlying land with no consideration for the existing improvements or any leases in place encumbering the subject property. By virtue of my investigation and analyses, it is the opinion of the appraisers that,the Market Value of the subject property, in an"As Is" Condition, as a fee simple estate, as of February 4, 2015 is: NINE MILLION EIGHT HUNDRED THOUSAND DOLLARS ($9,800,000) Respectfully submitted, Frank Hornstein, MAI State-Certified General Real Estate Appraiser,No. RZ 1376 EXECUTIVE SUMMARY Property Type: A commercial property. Report Type: Appraisal Intended Use: The intended use is to help the client establish a fair purchase price for the subject property. Intended User: The City of Sunny Isles Beach Property Description: Location: 18080 Collins Avenue, Sunny Isles Beach,Florida 33160 Site Area SF: 44,743 square feet or 1.0272 acres(Public Records) Folio Number: 31-2211-082-0010 and 0020 Flood Zone: AE Census Tract: 1.23 Zoning: B-1/BD a Neighborhood Business District by the City of Sunny Isles Beach, Florida. The district includes a business overlay. Date of Value: February 4, 2015 Date of Report: February 5, 2015 Property Rights Appraised: Fee Simple Estate Highest&Best Use: Future mixed use development in accordance with the zoning code and Sunny Isles Beach LDR. Marketing/Exposure Time: Within 12 months VALUE INDICATIONS KET VALUE "As Is"Condition Sales Comparison Approach: $9,800,000 Final Market Value $9,800,000 TABLE OF CONTENTS Letter of Transmittal Executive Summary Identification of Subject Property 1 Dates of Value& Report 1 Purpose of the Appraisal 1 Prior Recent Sales and History 1 Definition of Market Value 3 Property Rights Appraised 3 Use of the Appraisal 4 Intended User Of Appraisal 4 Summary of Scope of Work 4 Assessed Value and Taxes 7 Neighborhood Description 8 Zoning 13 Street Improvements/Access 14 Site Description 16 Highest and Best Use 17 Sales Comparison Approach 18 Reconciliation and Final Value Conclusion 23 Exposure Time 24 Certification 25 Assumptions and Limiting Conditions 26 Exhibits Location Map 2 Plat Map 2 Neighborhood Map 9 Aerial Photograph 15 Comparable Sales Map 20 Addenda Subject Photographs Property Tax Cards& Tax Bills Deed of Current Ownership & Legal Description Flood Zone Designation and Map Zoning Code Engagement Letter Qualifications of Appraisers IDENTIFICATION OF SUBJECT PROPERTY LOCATION-ADDRESS 18080 Collins Avenue, Sunny Isles Beach, Florida 33160 OWNER OF RECORD Dezer Universal LLC 18001 Collins Avenue, Sunny Isles Beach, Florida 33160 TAX ID# 31-2211-082-0010 and 0020 LEGAL DESCRIPTION Tracts A and B, SIB GOVERNMENT CENTER, PB 168/75, T- 23086, Miami-Dade County, Florida. DATES OF VALUE & REPORT DATE OF REPORT February 5, 2015 EFFECTIVE DATE OF VALUE February 4, 2015 INSPECTION DATE February 4, 2015 PURPOSE OF THE APPRAISAL The purpose of the report is to estimate the market value of the subject property. PRIOR RECENT SALES AND HISTORY The subject property was purchased by the current ownership group in May 2012 for $7,000,000. The seller was the City of Sunny Isles Beach and the transaction was recorded under OR Book 28167,Page 2863. There were no other known transfers of ownership over the past three years. The property also has not be listed nor under any contracts for sale during the same time period,preceding the date of this appraisal. 1 LOCATION MAP 54 1-----' A li •ii-' ,-,...7,7:4, .,:,.,, - - ,4 A li 144'.-- '''' - -'''''—f-,' 0 „i ,, , ,124,.":::;':-,. ,,,.1I-4,41, 1 ,.., , ..„--;„-_-_„--;-; -■ ,, v. , ., .-,. -Jil- ,.,, tg,,..?.."4.',, .1.r.i.,,,,::'?":Clr-,''',.f;!...,""-4,;,-7-:-.=. ‘,544...:Y4 _NE.--%956 *--,-.-,-,-. , . - '1 '*.= '-'2,------'Ir.,--...i'•'7 ':.1 1-93rd'S J IT;17":„S,;'' "1.;;;','41Tir..`-!:,ff,;ff.';.:''1:4 '.1 ''‘.: 1 ,....._,_ r„... . ..,-,-,,:,.e..... --,-i-ot.t..---- ..,„.„ ..: it____ ... ,,,,,-,------- 1 1,,,..-,.,;.::„...:-I , • ,,,,:,--.,.. .... .:-1 '...-..--'gt-..-4;:i ---i - 1,011FS —.1124, _ Vir,,,' : 1 ."- flostir.Terregir I ir--..-..- .. -- ." 3,, .. .i'..;•( ,11:011g-St---_-] 1 1 .T.-,. -„- - -•,- ---....% ----..- , ,•...-,.....;-,,,,-„rmro, • i 7_ 14E-18761-&— ,41,.. . -..=::. . - • -,,-'''':',..,. ` 1.0p ' f 1., - '','''.' 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I / • . , . s • ., r WO 1 0001 k ri..4. 11 itit1).' • '1 AMA ., T cl(' pH, ,' • 1! itiosein 11 . _ OW 1 . Ac) t r e 1 2110 MU R „ . .:- • . — — "- I 2 DEFINITION OF MARKET VALUE The following is a definition of market value typically utilized in the appraisal of real property. As per the extraordinary assumption, stated herein,the results ofthis appraisal may not equate to market value. Market Value is the most probable selling price in terms of money which a property should bring in a competitive and open market under all conditions requisite to be fair sale,the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents a normal consideration for the property sold unaffected by special financing or creative financing or sales concessions granted by anyone associated with the sale. Source: The Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75, No. 237, December 10, 2010. PROPERTY RIGHTS APPRAISED Fee Simple Estate,Leased Fee Estate and Leasehold Interest are defined as follows: (The Dictionary of Real Estate Appraisal, 5th Edition, Appraisal Institute 2010): Fee Simple Estate: Absolute ownership subject only to limitations imposed by the State; also called a freehold. Leased Fee Estate: A freehold(ownership interest)where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease). Leasehold Interest: The tenant's possessory interest created by a lease. The subject is currently operated as an Alamo Car Rental Agency. A lease agreement is believed to exist, but none was provided. As per the client's instructions the appraisal is to only encompass the underlying land as a fee simple estate. 3 USE OF THE APPRAISAL The appraisal report was prepared to assist the client in establishing a fair purchase price for the subject property. The appraisal reports are for the sole use of the listed client, or its assigns. "Readdressing an appraisal report to another party that was completed and delivered to a client is prohibited by USPAP. Once the assignment is completed, it is misleading to try to add a new party as client or intended user who was not the original client or identified intended user." Any requests for updating or re-certification would constitute a new assignment at an additional fee. INTENDED USER OF APPRAISAL The intended user is the City of Sunny Isles Beach. SUMMARY OF SCOPE OF WORK The aforementioned client has requested an appraisal to establish the Market Value of the subject property as of a current date. The property rights appraised will be the fee simple estate. Frank Hornstein, MAI made a personal inspection of the subject property on February 4, 2015. I have not provided professional services related to the subject property,as an appraiser or in another capacity, within the prior three years. The subject property is the underlying land or 44,743 square feet. The existing improvements no longer represent the highest and best use and the client has requested an appraisal of the underlying land free and clear of all encumbrances. Thus, the property rights appraised will be the fee simple estate. Comparable sales that have been utilized in the appraisal report were confirmed through public records and/or with knowledgeable parties to the transactions where possible with primary and secondary data utilized. Confirmation with principals is often not possible due to their inaccessibility during the time frame over which the appraisal is being prepared. In the course of the sales investigation,proprietary information is often withheld from the appraisers. Such information,which is not a matter of public record is also not available to the general market and for that reason, the market is imperfect. Real estate taxes and zoning information has been obtained via various websites such as www.Municode.com and www.miamidade.gov. Comparable sales data was obtained from: local market participants (i.e. brokers); Loop Net; Public Records and MLS. In addition to these data sources numerous conversations were conducted with market participants, i.e. brokers, property owners, etc., in order to gain perspective on current market conditions on Sunny Isles Beach. All data is verified to the best of our ability. The appraisers have no legal or technical expertise and if legal agreements and other factual data under review appear on the surface to be reasonable, the 4 SUMMARY OF SCOPE OF WORK(Continued) information is accepted as accurate. The extent of this verification is to confirm that the documents exist and to review them. It is assumed that they are legal and valid. The appraisers do not have the ability to audit, make legal interpretations,or to detect fraud. No in depth investigation is conducted of the individual lease documents nor is verification made with tenants regarding rent levels and terms. The existence of any environmental hazard such as the presence of hazardous wastes, toxic substances, radon gas, asbestos-containing materials, ureaformaldehyde insulation, etc, which may or may not be present in or on the subject property or any site within the vicinity of the property was not observed by the appraiser and the appraiser has no knowledge of any such environmental hazard. The appraiser, however, is not qualified to detect such substances. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The user of the report should therefore consult an attorney, contractor, accountant, engineer or other experts as necessary to verify technical data which could impact on the value of the property. Also, no independent investigation of concurrency matters regarding the subject or any comparable sale was made. There are three primary approaches to value which should be considered. They are: (1) the Cost Approach, (2) the Sales Comparison Approach, and (3)the Income Capitalization Approach. The Cost Approach utilizes the value of the subject land as estimated from the market together with a replacement cost estimate of the structures and site improvements. From this a deduction must be made for accrued depreciation: physical, functional, and external, if any, to provide an additional estimate of the total property value. A Cost Approach will not be prepared. The Sales Comparison Approach involves an investigation and inspection of recent sales in the area as nearly similar as possible to the subject. The sale properties(comparable sales)are then compared with the subject, and adjustments made for dissimilar characteristics. The Income Capitalization Approach, designed for application to income producing properties, utilizes a technique of capitalizing the net income into an estimate of value. The factors included in the technique are derived from a study of other similar type income properties. In all cases, except an appraisal of vacant land, it is necessary that all approaches should be considered and that those applicable approaches to be utilized to form an estimate of value. When more than one approach is used, although the indications of value may not be identical, they should establish a reasonable range and act as a cross check upon one another. 5 SUMMARY OF SCOPE OF WORK(Continued) After arriving at the value estimates and establishing a range of value (by more than one approach), the appraiser must correlate these estimates into a single conclusion of value. In formulating this conclusion,the appraiser must determine which approach is best supported and conforms realistically with the multitude of factors relating to the subject property. This appraisal will only include the Sales Comparison Approach. Hypothetical Condition A hypothetical condition is defined as that which is contrary to what exists, but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical,legal,or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Source: USPAP 2014-2015 Edition. This report includes no hypothetical conditions. Extraordinary Assumption An extraordinary assumption is an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical,legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Source: USPAP 2014-2015 Edition. The client has requested the subject property be appraised free and clear of all encumbrances as if under a typical fee simple estate. It is important to note that any potential leases encumbering the subject property may have an impact on market value. 6 ASSESSED VALUE AND TAXES The assessed value and tax bill information is based on the Miami-Dade County tax records obtained via www.miamidade.gov. A summary of the property tax card is provided as follows: ASSESSED VALUE AND TAX BILL INFORMATION Tax Year 2014 2014 Folio Number 31-2211-082-0020 31-2211-082-0010 Site Size/SF 26,466 18,277 Year Built 1962 N/A Adjusted Building SF 1,377 N/A Market Value: Land $2,117,280 $1,462,160 Building $1,000 $0 XF Value $29,028 $29,102 Total $2,147,308 $1,491,262 Assessed Value $1,780,167 $1,238,667 Market Value Per SF(Land) $80.00 $80.00 Taxes $37,330.54 $25,952.30 Status Paid Paid Source: www.miamidade.gov According to said Property Appraiser website there were no delinquent prior year taxes or tax certificates encumbering the subject property. By comparison to the surrounding parcels the subject's assessed value is reasonable. With the passage of Constitutional Amendment 1 in January 2008,increases in the assessment of non- homesteaded properties will be limited to a maximum often(10)percent beginning in 2009.Pursuant to Senate Bill 1588 owners of non-homesteaded properties do not apply for this benefit. The cap does not apply to the School Board portion of property taxes. Recorded ownership changes will reset the 10 percent cap to current market value. 7 NEIGHBORHOOD DESCRIPTION According to The Dictionary of Real Estate Appraisal, 5th Edition, Appraisal Institute 2010, a neighborhood is defined as:"a group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises. Sunny Isles Beach,which is a barrier island in the northeast corner of Miami-Dade County,is situated between 156th and 195th Streets. The City, is bounded by: the Atlantic Ocean on the east; and the Intra-Coastal Waterway on the west. The town of Golden Beach lies to the immediate north while Bal Harbour and Haulover Park are to the immediately south. Less than two miles in total length, Sunny Isles Beach has a lot to offer for such a short stretch of land. The City,which was incorporated in 1997,has been experiencing a major redevelopment renaissance on the east side of Collins Avenue, the main thoroughfare. Zoning laws ensure that view corridors and beach access pathways will always offer residents a life with a view. To the west of Collins Avenue, the City has been building parks, improving the infrastructure and laying the groundwork for future redevelopment. The emphasis of most of the redevelopment is on residential condominium construction.Developers in accordance with the City's Land Development Regulations(LDR's)are steadily replacing outdated motels and/or motel-condos with luxury, high-rise, residential oceanfront development. The new developments typically offer floor to ceiling glass windows in every room, hi-tech integration into each unit such as"smart living", amenities that are only found in 5 star resorts and fresh designs in building structure. Over the past decade Sunny Isles has been one of the best location for residential condominium pre-construction. Developers constructed 27 projects with nearly 6,400 units in the Sunny Isles Beach market since 2003.Prior to the boom, developers had built nearly 60 projects with nearly 12,000 units. Currently Sunny Isles Beach ranks second in most active condominium markets in Miami-Dade County. Approximately 19 towers with about 2,500 units are either under construction or proposed. The following table illustrates the City's demographic profile over the past decade. Year 2000 2012 Total Population 15,315 20,832 Population Change - 36% Median Age in Years 50 43.5 Total Housing Units 11,169 18,984 Change in Housing Units - 70% 8 rn • A :: x ..F ' ff,F, i a :i .;r s 0 pp 1, At'. : 7i' rti A s. Ay t y : f } ce �ru,g y r,-;;‘,,, f i R .r i A � ) .3 s} 4 •. :-, .>_-i:.!f.. ,lY ;: �`,1 � 1 _ . • i .*.k.:,/,':-"..::yyy1,. ,:A. '9: ;,?;+, :C::i+r.:iJyP• i!6L K £' All,. � . x n ' y.. � . y . ,: a ,,, es. 2. J4 • 'a� ?fi ," Ca• q •: .i ip�.• • : r .�'.:: 9' . •. 4J. , ,\. ' gt ,':' Y',a') x..,„ ,l, f yyA.; c`'syi .r .. ' '>?s1\s�7.'i' )t•Y.1::. 4.�'. 4`•. •;� �+.,a.��:H. .. am ` �}.�. ... . ' - ':5:' :x4k .,`:et a` r:•••..c44-' y'�4*, - .y's,,. _ 3'.•x) r(. ° :t: it fi, i`Y !•.,rri ,)_.•�.+7th. '..::)'',.: � ,.,Xh.•i�.'�.r'�.R ..• c n.�,.....) .. tit .�,,�.: ',"r�: �y �- ?. r'°}s.y:.\a� ��_;. � .. . .aA:se..r:�:4. Y . mot''+ a. " '�. i,.'f*.t'.:x, •:x." J: S-, :.Kt=.. _. h � f S [ 'i.,t s�A•[• , f} .,T Ck. i. Jn maYy to Y :),r' '`i 4, i '' Y' '1c,�TF 4.a bra_ '.:: 1. ._ �15'._x•4: l �i!.Y,' •a . T L r+ �. I � t " y . , , . L.., h a 1' J i. -lip 0._' j yY , I, 9 gg 111 ,.I ` i .. oq _I '` ! .. I_ 1 �, ;ti _ _ r W 4 r!� `"NE 'IC,',. I 'f ). p I L I It,- •,cam_— ice- :...^z H W z NEIGHBORHOOD DESCRIPTION (Continued) Year 2000 2012 Total Households 8,169 10,233 Change in Households - 25% Population Per Household 1.37 2.04 Median Income $31,627 $37,202 Source: U.S. Census Bureau. The population on Sunny Isles Beach increased by 36% over the past decade. The profile shows a decrease in the median age and increase in people per household. The number of occupied housing units stands at 10,233 while 8,751 vacant units existed. Approximately 5,700 of the units are seasonal,recreation or for occasional use. Over the past decade,and more recently,the demographic profile of the condominium buyer has been foreign, more specifically South or Latin American, or a non-permanent resident. Over the past few decades the retired population has been decreasing and many of the older ocean front condominiums and hotels have been replaced with said high-rise condominium projects. The ocean front condominium projects appear to be marketed towards a mix of international investors and domestic residents. The City is well located and can be accessed via two causeways, (the William Lehman and the Sunny Isles Causeway), at the northern and southern boundaries. Both extend east from Biscayne Boulevard, a major business artery through eastern Miami-Dade County. The Lehman Causeway extends only between Collins Avenue and Biscayne Boulevard. Sunny Isles becomes NE 163 Street and continues west through the City of North Miami Beach. This road is a major business corridor and connects with I-95 to the west. Collins Avenue, also know as Al A, extends north and south along the beach area and travels into Broward County. This roadway includes all supporting commercial development,i.e.grocery stores, restaurants, retail, office, etc. Sunny Isles Beach is primarily developed with: multi-family uses, along the ocean and inland areas; and commercial uses along the west side of Collins Avenue. The multi-family uses consist of both mid and high rise condominium and/or hotel projects. There are some single-family pockets located towards the western boundaries of the City. Golden Beach,to the immediate north,is primarily developed with single-family homes ranging from $500,000 to over $15 million, along the ocean. 10 NEIGHBORHOOD DESCRIPTION (Continued) With the inception of the City a new LDR was created which allowed for relaxed FAR and building height criteria. The result has been nearly 12,000 new condominium units completed over the past decade with 6,400 units completed since 2003. As part of the LDR the City created a mandatory bonus program and a TDR bank. As such, the City purchased multiple properties thus allowing developers to purchase the development rights from said properties in order to increase the FAR of their proposed projects. The bonus program requires the developers to pay into funds that allow for the maintaining of the beach and creation of multiple access points. Also these bonuses provide for other Public projects such as parks. With the bonuses the FAR can be increased by a maximum of 2.1 along the ocean front and 1.5 in non-ocean front locations. From there an addition 30%in FAR may be purchased via the TDR program. Thus the maximum FAR can be increased, as per the LDR, to 5.98 along the ocean about 5.0 for non-ocean front properties. The cost of the TDR's are derived from property appraisals. With the completion of 6,400 units,since 2003,the condominium market became saturated and prime for a collapse during the housing bubble burst. The nearly 2,000 units completed after 2008 remained vacant and unsold until 2010. As of December 2014 less than 100 of the developer units remain. Increases in pricing and renewed interest in the ocean front has spurred a new wave of condominium development on Sunny Isles Beach. Approximately 19 new towers with about 2,500 units have been proposed or are under construction at this time. Some of the more notable projects are illustrated in the following table. Project Name # Units Status Regalia 40 Completed Porsche 132 Under Construction Mansions at Acqualina 79 Under Construction Jade Signature 192 Under Construction Solis/Chateau Sites 220 Under Construction Chateau Beach 84 Nearing Completion St. Tropez Parque Towers 329 Under Construction Armani Towers 227 Planned Muse 68 Planned Turnberry Ocean Club 154 Planned Total 1,525 The newer condominium inventory is solely targeted towards the upper luxury category. These projects offer or will offer architectural designs and finishes not seen in the previous boom of condominium units. The reported contracted and asking prices are also considerably higher than what was previously experienced.The table on the following page summarizes typical listing and sale prices for condominiums, completed after 2003, within the boundaries of Sunny Isles Beach. 11 NEIGHBORHOOD DESCRIPTION (Continued) 1 CONDO SALES/LIST PRICE RANGE WITHIN PAST 6 MONTHS Listing Price Range $245,000 to$50,000,000 Average $1,817,094($805/SF- 1,919 SF) Median $1,060.000($732/SF-1,577 SF) #of Active Listings 443 Closed Price Range $150,000 to$7,450,000 Average $1,074,423 ($547/SF- 1,888 SF) Median $850,000($501/SF- 1,591 SF) #of Closed Sales 235 Avg.Days on the Market 141 Source: Multiple Listing Service(MLS) The remaining inventory for product completed after 2008 and 2010 is very limited. The projects under construction have indicated excellent market demand with few units remaining and selling prices that far exceed the aforementioned inventory of re-sale units. Once again the new inventory of condo projects offer a higher quality of architecture,design,finishes and amenities than the previous inventory.The pricing for these projects tend to be over$1,200 per square foot. In addition, several mixed use projects are proposed for the west side of Collins Avenue. Most notably is the 194 room Marriott Residence Inn proposed for 17700 Collins Avenue. The rental apartment market is limited with most buildings indicated occupancy rates above 90%. Rental rates have continued to increase. According to the Reinhold P.Wolff 3rd Qtr. 2014 Residential Housing Survey the rental apartment for this section, which includes northern Miami Beach, included 1,613 units. The market included a vacancy rate less than 1%and rental rates in the$1,185 to$1,813 range. The commercial uses are located along the west side of Collins Avenue. These include shopping centers,office buildings,restaurants,financial institutions,super markets,drug stores,etc. The current market vacancy rate is about 3%and the average asking rent is $32 per square foot,NNN. Conclusion: The Sunny Isles Beach condominium market is in demand with very little remaining developer inventory from the previous boom. The new generation of space is also indicating excellent absorption with most projects selling out well within a year. The pricing for the new projects illustrate an increase in values. International buyers represent a large majority or about 60%of the buyers in this market. The subject property is located along the west side of Collins Avenue. The property is surrounded by commercially uses along Collins Avenue and lower intensity residential uses. The property to the immediate south includes the City of Sunny Isles Beach Government Center.There were no unfavorable factors noted that could negatively affect the marketability of the subject property. 12 ZONING The subject property is zoned B-1,Neighborhood Business District,by the City of Sunny Isles Beach, Florida. The property is also located in the Business Overlay District (BD). The Neighborhood Business District (B-1) is established to provide locations for convenience shopping facilities in which those retail commercial uses shall predominate that have a neighborhood-oriented market and which supply necessities that usually require frequent purchasing and with a minimum of consumer travel. Typical uses to be found in the Neighborhood Business District include a food supermarket,drugstore,personal service establishments,small specialty shops, and a limited number of small professional offices.Mixed-use developments that integrate residential over retail or office use are encouraged, especially to promote live/shop/work associations within the same site. They should be designed to be an integral,homogeneous component of the neighborhoods they serve, oriented to pedestrian traffic as well as vehicular. Because of the nature and location of the Neighborhood Business District,they should be encouraged to develop in compact centers under a unified design that is architecturally compatible with the neighborhood which they are located adjacent to. Further, such districts should not be so large or broad in scope of services as to attract substantial trade from outside the neighborhood. Lot assembly, however, shall be encouraged to promote enhanced at-grade pedestrian and bicycle circulation systems,greater site design efficiency, especially for parking, and reduced vehicular circulation drive impacts. Some of the permitted uses include: low and medium density multi-family apartments; retail uses; banks and financial institutions; hotels, office; restaurants; religious facilities; and schools. For a complete list of the permitted and conditional uses please refer to the complete B-1 zoning code in the addenda. The buyer is planning a hotel for the subject site. The district provides for medium density residential development of multi-family dwellings at a maximum density of 25 units per acre. The maximum FAR is 2.0. The maximum FAR permitted may be increased only in accordance with the following provisions and limitations in conformance with the allowable limits set under the adopted Sunny Isles Beach Comprehensive Master Plan: BONUS SCHEDULE Item Maximum Bonus Enclosed Parking .40 Public Street-scape .30 Site Assembly .123 Total Bonus .823 13 ZONING (Continued) The total cost of obtaining bonuses vary from site to site and are based on the amount of participation units the developer is willing to contribute. According to a representative with the Building and Zoning Department, Claudia Hasbun, all proposed projects, within the B-1/BD zoning district, are entitled to purchase bonuses up to .823, thereby, increasing the total FAR to 2.823, prior to the purchase of TDR's. In comparison to project costs the purchase price for bonuses are nominal. To qualify for TDR's all required bonuses must be purchased. The purchase of TDR's can increase the FAR by a maximum of 30% or a maximum density of 85 units per acre. According to Ordinance No. 2002-147 the City of Sunny Isles Beach will allow the transfer of development rights from lands acquired by the city, currently utilized as public open space, parks, recreational facilities,community facilities and cultural facilities,to proposed development sites within the various districts. As such, a receiver will be allowed to obtain these TDR's, thereby, increasing the density and FAR of the development site. However, in no case, shall the density or intensity be increased by more than 30% of the maximum permitted by the land use category. Summary The subject property is well suited for any of the allowable uses under the existing zoning code. STREET IMPROVEMENTS/ACCESS Access to the subject property is via the west side of Collins Avenue, a four lane with middle turn lane, asphalt paved, roadway. The dedicated right of way is 100 feet and the street improvements include a concrete median, concrete sidewalks, gutters and utility poles. The property can also be accessed via the two lane Atlantic Boulevard. The right-of-way is 70 feet. 14 AERIAL PHOTOGRAPH 'iv, _ 4: . : , • d .E 0 15 SITE DESCRIPTION Shape: Rectangular Size: 1.0272 acres or 44,743 square feet(Public Records) Topography: Level and at road grade Environmental Note: Soil tests were not available and the soil is assumed to be free of contaminants and pollutants. Utilities: Water and Sewer: City of Sunny Isles Beach Electric: Florida Power Light Telephone: Varies Police and Fire: City of Sunny Isles Beach Easements: No adverse easements were noted. Typical utility easements are at the site boundaries. Flood Zone: AE(See Addenda). Census Tract: 1.23 (See Addenda). Concurrency: The concurrency provisions of the Growth Management Act mandates that development can proceed only when the necessary infrastructure is already in place or will be in place concurrent with the impact of development. This concurrency rate means that developers must satisfy seven areas of level of service(LOS) including: roads, drainage, sanitary sewer, potable water, solid waste, recreation and mass transit. Any proposed development would have to approved by the City of Sunny Isles Beach. Site Improvements: The subject property is improved with a commercial building that contains 1,377 square feet. The improvements were completed in 1962 and utilized as an Alamo Rental Car agency. The improvements no longer contribute to the highest and best use of the subject property. Summary The site appears to be well suited for any of the allowable uses under the B-1 zoning code. 16 HIGHEST AND BEST USE Highest and Best Use is defined as: The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility,financial feasibility, and maximum productivity. Alternatively,the probable use of land or improved property—specific with respect to the user and timing of the use—that is adequately supported and results in the highest present value. Source: Appraisal Institute, The Dictionary of Real Estate Appraisal,5th ed. (Chicago:Appraisal Institute), 2010. The definition immediately above applies specifically to the Highest and Best Use of land. It is to be recognized that in cases where a site has existing improvements on it, the Highest and Best Use may very well be determined to be different from the existing use. The existing use will continue, however, unless and until land value in its Highest and Best Use exceeds the total value of the property in its existing use. There are four tests that a property must meet in order to indicate Highest and Best Use. The use must be physically and legally possible, financially feasible, and must be the most productive use among the possible alternative uses. Conclusion - Highest and Best Use as if vacant The highest and best use, as if vacant, is for any of the development of a mixed use and/or hotel project, as permitted under the B-1/BD zoning code, and in accordance with the Sunny Isles Beach LDR. Conclusion - Highest and Best Use as Improved The subject property is currently improved with a one-story,commercial,building that was completed in 1962. The improvements contain 1,377 square feet and are utilized as an Alamo Car Rental Agency. The improvements do not meet the maximum development rights as per the B-1/BD zoning code and Sunny Isles Beach LDR. The highest and best use as improved is for the re-development of the property in accordance with said zoning code and LDR. 17 SALES COMPARISON APPROACH The Sales Comparison Approach is the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised,identifying appropriate units of comparison,and making qualitative comparisons with or quantitative adjustments to the sales price (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. Source: The Dictionary of Real Estate Appraisal, 5th Edition(Chicago: Appraisal Institute), 2010. The subject property contains a total area of 44,743 square feet or 1.0272 acres. The sales search included non-ocean front parcels within the immediate neighborhood. Three land sales and a current contract were found over the past few years. A complete description of each sale is included in the following table. A location map will follow. The land sales were all purchased with the same intent of multi-family and/or mixed use development. None of the sales included development approvals at the time of purchase. The primary determinant of market value for vacant land on Sunny Isles Beach is either predicated upon FAR or density. According to a representative with the Building and Zoning Department, Claudia Hasbun, all proposed projects,within the B-1 zoning code, are entitled to purchase bonuses up to 1.00,thereby, increasing the total FAR to 3.00, prior to the purchase of TDR's. In comparison to project costs the purchase price for bonuses are nominal.To qualify for TDR's all required bonuses must be purchased. The sales included varying zoning codes and FAR requirements. As such, the price per square foot of land area will be utilized. Land Sale 1 currently includes the Epicure market and café. The property will be re-developed with a large mixed use project. The sale represented a land transaction for future development. The property is considerably larger than the subject in size, but the transaction is dated. Land Sale 2 is the current contract on a similarly zoned parcel of land located about eight blocks north of the subject, along Collins Avenue. The property is smaller in size. The contract was signed in December 2014 and is scheduled to close in January 2015. Land Sale 3 is the recent sale of the McDonald's fast food restaurant to the immediate north. The site is identical in size and zoning. The buyer included similar partners within the same ownership group as the subject property. The property is encumbered by a long term lease that could potentially extend until March 2032. The current extension period ends in March 2017. The contract rent was reported to be fixed at annual rent of$65,000,NNN. The purchase price appeared to be predicated upon future development rights and was similar, on a per square foot basis, to Land Sale 2. From an investment standpoint the Overall Rate of Return is less than 1%. This low rate is reflective of a below market rent with no scheduled increases. Also the lease has a potential short remaining life. 18 SALES COMPARISON APPROACH TO VALUE (Continued) COMPARABLE LAND SALES Sale 1 2 3 4 Subject Address 17146-90 Collins 18590 Collins 17730 Collins 18080 Collins 18080 Collins Avenue Avenue Avenue Avenue Avenue City, St. Sunny Isles Sunny Isles Sunny Isles Beach, Sunny Isles Beach, Sunny Isles Beach, Beach.Fl. Beach,Fl. Fl. Fl. Fl. Date of Sale 07/2012 Contract 11/2014 05/2012 N/A OR bk./Pg. 28179/3557 Not Applicable 29389/4987 28167/2863 N/A Folio No. 31-2211-004- 31-2202-006- 31-2211-003-0041 31-2211-082-0010 31-2211-082-0010 0120;0112; 0050 and 0020 and 0020 0050;and 0010 Grantor Jerry's Famous Corner House BRB Investments City of Sunny Isles Dezer Universal Deli, Inc. LLC Beach LLC Grantee Abus LLC Confidential 17730 Collins Dezer Universal N/A Avenue LLC LLC Sale Price $19,050,000 $4,625,250 $7,500,000 $7,000,000 N/A Terms Cash Not Applicable PMM-$3,000,000 Cash N/A to seller. Site Size SF 136,325 16,970 31,900 44,743 44,743* Frontage Collins Avenue Collins Avenue Collins Avenue& Collins Avenue& Collins Avenue& Atlantic Blvd. Atlantic Blvd. Atlantic Blvd. Zoning TCD B-1 B-1 B-1/BD B-1/BD Proposed Use Mixed Use Mixed Use N/A N/A N/A Condominium Project Approvals None None None None None $/SF Land $139.74 $272.55 $235.11 $156.45 N/A * Public Records. For consistency purposes Public Records for the sales and subject property are utilized. 19 0 N r,. i.,sk „ h yob ^�ti - . • .. . .. . ‘,...„.,........:. , ,.. ....,. . • .. ,„....,..„,....:„..,..,..,...4,,..ffi. • . . . . . .......:4,,,...0;.,.:.......,..f.,,..,. • . . •••, ". . i R`c - - 'J; -- _ ��`:Q [ III I ____ _ 0 gi - 4\ i 1 t a � �t sit= {ti .v trti .,vi. `:a.'Ott s• ......SZ•: P *• P' ire, _ I'd'. G ^y� ,_.• P C4i .•x!:..e e �4 - .• iii i I .M4 1 l xo- '# , _.-' .'ter...^_.°1i..:- �-- 1.:i z _.k 'I p� I y:•wl s� L _ �t Nrw S �.i�^ •'j�\' f j W if '�: 5t .: r74 _.r, I :::',. —.)-:..--7::...„..,,.s.,:,-__-...::-.r.:.::• r-t-7 ..: a l � iV~ Fe r :?, 1 , O U SALES COMPARISON APPROACH TO VALUE (Continued) Land Sale 4 includes a dated transaction of the subject property. The sales will be analyzed for property rights conveyed, conditions of sale, financing, market conditions(i.e. time), zoning, site size, location and approvals and other. The comparable sales will be compared to the subject on a quantitative basis. For the purposes of the quantitative adjustments, percentage(%)estimates or$amounts as supported by the comparables will be applied as necessary. Property Right Conveyed: The sales each included transfers of fee simple estates. Conditions of Sale: The sales were each considered to be arm's length transactions. An adjustment for this factor is not applied. Financing: The sales each included cash or cash equivalent purchases of real estate. An adjustment for this factor will also not be applied. Market Conditions(Time): The sales occurred from May 2012 through a recent closed sale and contracted dated November and December 2014. A direct comparison of Sales 3 and 4 indicate an increase in pricing of about 40% since 2012. Other coastal locations exhibit similar increases over the past few years for commercial land. Zoning: The sales include varying zoning codes with different FAR requirement and development rights. Sales 2 through 4 include similar zoning codes. Sale 1 includes a superior zoning code. However, this property is considerably larger in size. As such, an adjustment for this factor will not be applied, but considered in the final reconciliation of market value. Site Size: Sale 1 is larger in size while Sale 2 is considerably smaller. According to market evidence a larger property will tend to sell for less on a per square foot basis than a smaller one. A direct comparison of Sales 1 and 4 illustrate an approximate 10% difference due to site size. Sales 2 and 3 illustrate an approximate 15% difference. For the purpose of this appraisal a 10% upward adjustment will be applied to Sale 1, while Sale 2 is adjusted downward by the same amount. 21 SALES COMPARISON APPROACH TO VALUE (Continued) Location: The sales include similar locations along the west side of Collins Avenue. An adjustment for location is not applied. The following table illustrates the adjustments applied to each of the sales. Sale 1 2 3 4 Sale Price $19,050,000 $4,625,250 $7,500,000 $7,000,000 Transactional Property Rights $0 $0 $0 $0 Conditions of Sale $0 $0 $0 $0 Financing $0 $0 $0 $0 Market Conditions (Time) $7,620,000 $0 $0 $2,800,000 Adjusted Selling Price $26,670,000 $4,625,250 $7,500,000 $9,800,000 Physical &Location Adjustments Zoning $0 $0 $0 $0 Site Size $2,667,000 ($462,250) $0 $0 Location $0 $0 $0 $0 Other(Approvals) $0 $0 ($0 $0 Total Physical&Location Adj. $2,667,000 ($462,250) $0 $0 Adjusted Selling Price $29,337,000 $4,163,000 $7,500,000 $9,800,000 Site Size SF 136,325 16,970 31,900 44,743 Adjusted Price Per SF $215.20 $245.32 $235.11 $219.03 The sales indicated an adjusted range in prices from$215.20 to$245.32 per square foot of land area. Sales 2 though 4 include similar zoning, while Sales 3 and 4 are the most similar in site size. Sales 2 and 3 are the most recent transactions. The market value of the subject property is estimated as follows: Site Size SF x Value Per SF = Concluded Market Value 44,743 $220.00 $9,843,460 Round To: $9,800,000 "As Is" Market Value The "As Is" Market Value will entail deducting the cost to demolish or raze the existing improvements in favor of said new construction. According to the Marshall Valuation Service this cost is approximately $5.00 per square foot or about $7,000 for the subject building. Thus, due to rounding the"as is" market value is also estimated at $9,800,000. 22 RECONCILIATION AND FINAL VALUE CONCLUSION The Sales Comparison Approach utilized four comparable sales within the immediate market area. Several of the sales were recent and included either the same zoning code or similar site size. The highest and best use of the sales were similar to the subject property. Thus, the Sales Comparison Approach was considered to be a reasonable indicator of market value. By virtue of my investigation and analyses, it is the opinion of the appraisers that, the Market Value of the subject property, in an"As Is" Condition, as a fee simple estate, as of February 4, 2015, is: NINE MILLION EIGHT HUNDRED THOUSAND DOLLARS ($9,800,000) Respectfully submitted, Frank Hornstein, MAI State-Certified General Real Estate Appraiser, No. RZ1376 23 EXPOSURE TIME Exposure time is defined as: 1. The time a property remains on the market. 2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. Source:Appraisal Institute, The Dictionary of Real Estate Appraisal, 5th ed. (Chicago:Appraisal Institute), 2010. Several of the comparable sales utilized indicated marketing times of about 1 to over 12 months. Therefore the exposure time is estimated to be within 12 months, premised upon current market conditions. 24 CERTIFICATION I Certify to the best of my knowledge and belief: - The statements of fact contained in this report are true and correct. Te reported analyses,opinions, and conclusions are limited only by the reported assumptions and limiting conditions are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. - I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. I have not provided professional services related to the subject property, as an appraiser or in another capacity, within the prior three years. I have no bias with respect o the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client,the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. - My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. I have (or have not) made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the person signing this certification. As ofthe date of this appraisal Frank Hornstein,MAI has completed the continuing education program of the Appraisal Institute. Frank Hornstein, MM February 5, 2015 State-Certified General Date Real Estate Appraiser,No. RZ 1376 25 ASSUMPTIONS AND LIMITING CONDITIONS The value conclusion and certification within this report are made expressly subject to the following assumptions and limiting conditions as well as any further reservations or conditions stated within the text of the report. 1) No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable. 2) All existing liens and encumbrances,(except the existing leases if any)have been disregarded, and the property is appraised as though free and clear. 3) Responsible ownership and competent property management are assumed. 4) The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5) All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6) It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7) It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless non-compliance,is stated,defined,and considered in the appraisal report. 8) It is assumed that all applicable zoning and use regulations and restrictions have been complied with, except where non-conformity has been stated, defined, and considered in the appraisal report. 9) It is assumed that all required licenses,certificates of occupancy,consents,or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10) It is assumed that the utilization of the land and improvements is within the boundaries of property lines or the property described and that there is no encroachment or trespass unless noted in this report. 26 ASSUMPTIONS AND LIMITING CONDITIONS (Continued) 11) Subsurface rights were not considered in making this appraisal. 12) The distribution, if any, of the total valuation of this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 13) Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser, and in any event only with proper written qualification and only in its entirety. 14) The appraiser herein by reason of this appraisal is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 15) Neither all nor any part of the contents of this report(especially any conclusions as to value, the identity of the appraiser, or any reference to the MAI or SREA designations) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 16) The existence of potentially hazardous material used in the construction or maintenance of the building and/or the existence of toxic waste which may or may not be present on or under the site was not observed during our inspection. However,we are not qualified to detect such substances. These substances, if they exist, could have a negative effect on the estimated value of the property. The user of this report is urged to retain an expert in this field if desired. 17) Unless specifically stated to the contrary in the report, no independent evaluation of concurrency matters were made for the subject or any sales comparables. In the event concurrency is found to affect subject property or any of the sales comparables, we reserve the right to reconsider the value conclusion. 18) This appraisal was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 19) The client has requested the subject property be appraised free and clear of all encumbrances as if under a typical fee simple estate. It is important to note that any potential leases encumbering the subject property may have an impact on market value. 27 ADDENDA Easterly view of subject property ' PA- - 4 -11 ,,,_,,; . 1,.....ippr • . 4h -x, ,. ' , ' 1... .. S Westerly view of subject property r j1 . ._ °IkUq ..`. xx a s.' Northerly view of Collins Avenue ! \ . - / < I ` x Southerly v ew of Collins Ave ue t- \ , ` « \ _ . / • 1„ d . r f . \ . • Northerly view of Atlantic Bome ar Property Search Application-Miami-Dade County http://www.miamidade.gov/propertysearch/#/report/summary a ito ' OFFICE OF THE PROPERTY APPRAISER Summary Report Generated On:1130(2015 Property Information 6,`{ •r . Folio: 31-2211-082-0020 S`c a Property Address: 18080 COLLINS AVE ' • 1 2^r.G ' t.-s,.?.. v U �j r ): . Owner DEZER UNIVERSAL LLC t 1 — i i,t Malting Address 18001 COLLINS AVE 31TH FL `� '\ � SUNNY ISLES BEACH,FL 33160 Primary Zone 6300 COMMERCIAL-RESTRICTED 7 � ! 4;r• � 1211 MO(ED .1 1 Primary Land Use USE-STORE/RESIDENTIAL:RETAIL t.,' — tl OUTLET J` _ ' !•=. 4 'r.i f Y€1 1't Beds l Baths 1 Half 0/0/0 f;mi i° Floor 1 e t-( f5" [}Yik.1 `'1.412.4,4' ,•Living Units 0 F , 1, r ,4 - i• 1 e r.. .; S r r:. fi Actual Area Sq Ft is ,'Z MAX I I,'?. _ Living Area Sq.Ft Pr i'. 1..1:..+:-.ti t'',d i r __:C., — Adjusted Area 1,377Sq.Ft Taxable Value Information Lot Size 28,468 Sq.Ft l 20141 2013 2012 Year Bunt 1982 County Assessment information Exemption Value $0 $0 $0 Year 2014 2013 2012 Taxable Value $1,780,187 2.1,818,334 $1,622,858 Land Value $2,117,280 $1,587,960 $1,587,960 School Board Building Value $1,000 $1,000 $1,000 Exemption Value $0 $0 $0 XF Value $29,028 $29,374 i33,898 Taxable Value $2,147,308 $1,618,334 $1,622,858 City 8 Market Value $2,147,308 ^ $1,622,858 Assessed Value $1,780,187 $1,818,334 $1,822,858 Exemption Value $0 $0 $O Taxable Value $1,780,167 $1,818,334 $1,622,858 Benefits Information Regional Benefit Type 2014 2013 2012 Exemption Value $0 $0 $0 Non-Homestead Cap Assessment Reduction $387,141 Taxable Value $1,780,187 $1,618,334 $1,622,858 Note:Not all benefits are applicable to all Taxable Values(I.e.County,School Board,City,Regional). Sales Information Previous OR Price Qualification Description Short Legal Description Sale Book-Page ^ SIB GOVERNMENT CENTER 05/11/2012 $7000,000 28167 2863 Federal,state or local government PB 168-075 T-23088 agency TR B LOT SIZE 28486 SF M1L FAU 31 2211 005 0016 The Office of the Property Appraiser is continually tang and updating the tax roll This website may not reflect the most current Storm atlas on record.The Property Appraiser and Mami.Dade County assumes no liability,see full Qsclainerand User Agreement at httpllwenv.miamIdadagovfmOoklecleangtasp Version: 1 of 1 1/30/2015 9:00 AM 2014 roll details-Real Estate Account at 18080 COLLINS AVE,S... https://www.miamidade.county-taxes.com/public/real estate/parcels... mia made Gaff Tax Collector Home Search Reports Shopping Cart Please do not Include any special characters in the name,address,and e-mail field such as#,&,hyphens,comma,dashes, We have moved.Our new address is: 200 NW 2nd Ave,Miami,FL 33128 The information contained herein does not constitute a title search or property ownership. 2014 Roll Details—Real Estate Account At 18060 COLLINS AVE.Sunny Isles Beach 33160-2723 Real Estate Account#31-2211-082-0020 iu Parcel details F Latest bill Full bill history 2014 I 2013 2012 2011 2010 Paid Paid Paid Paid Paid Owner: DEZER UNIVERSAL LLC 16001 COLLINS AVE 31TH FL SUNNY ISLES BEACH,FL 33160 Situs: 18080 COLLINS AVE • Sunny Isles Beach 33160-2723 Account number:31-22114824020 Millage code:3100-SUNNY ISLES BEACH Millage rate: 19.32570 Assessed value: 1,780,167 School assessed value:2,147,308 FGags VAB Pending Property Appraiser 2014 annual bill View Legal de ctfptiort Location Ad valorem: $37.330.54 S I 3 GOVERNSEN CENTER BB 168-075 Range: 42E T-23066 TR B LOT SIZE 26466 SF M/L FAG Non-ad valorem: $0.00 31 2211 005 0016 Township: 526 Total Discountable: 37330.54 Section: 11 No Discount NAVA: 0.00 Block: 20 Total tax: Use code: 1211 Total awes: 1.000 Paid 2014-12-01$35,837.32 Effective 2014-11-30 Receipt#CHECK21-15-025403 1 of 1 1/30/2015 9:00 AM Property Search Application-Miami-Dade County http://www.miamidade.gov/propertysearch/#/report/summary 1::. OFFICE OF THE - PROPERTY APPRAISER Summary Report Generated On:1/30/2015 Property Information 's / 'i r''r Folio: 31-2211-082-0010 b l F% 1£3 t t,, T f 1.8 2 N r> >T Property Address: Owner DEZER UNIVERSAL LLC Mailing Address 18001 COLLINS AVE 31TH FL SUNNY ISLES BEACH,FL 33160 .. J k = � Prima Zone 6300 COMMERCIAL-RESTRICTED ,, P 1066 VACANT LAND- ^ Primary Lend Use COMMERCIAL:E)CTRA FEA OTHER - I l THAN PARKING �'A r 7"_I-.. . .:.t_._ . ' �! • l Bede l Baths l Half 0/0/0 -J ,kil li i z,', fib Floors 0 .. ` �' � : y- "4. i Living Units 0 9` .t ;1';-.ill "°.:.. t i ' 3 f J Actual Area 0 Sq.Ft !d ,,?- f _ . _— Living Area 0Sq.Ft � '. Adjusted Area 0 Sq.Ft Lot Size 18,277 Sq.Ft Taxable Value Information Year Built 0 20141 20131 2012 County Assessment Information Exemption Value $O $0 $1,129,445 Year 2014 2013 2012 Taxable Value $1,238,867 51.126,061 $0 Land Value $1,462,160 $1,096,820 51,096.620 School Board Building Value $0 $0 — —$0 Exemption Value i0 - _ .__ $01 $1,129,445 XF Value $29,102 $29,441 $32,625 Taxable Value $1,491,262 51,128,061 $0 Market Value $1,491,262 $1,126,081 $1,129,445 Clty Assessed Value $1,238,667 $1,126,061 $1,129,445 ExempOonValue $0 $0i $1,129,445 Taxable Value $1,238,887 01,126.0611 $0 Benefits Information Regional Benefit Type 2014 2013 2012 Exemption Value $0 $0 $1,129,445 Non-Homestead Cap Assessment $252,595 Taxable Value $1,238,667 $1,126,061 $0 Reduction Municipal Exemption $1,129,445 Sales Information Note:Not all benefits are applicable to all Taxable Values(i.e.County,School Previous m OR Price Description Board,City,Regional). Sale Book-Page 05/11/2012 57,000,000 28167-2863 Federal,state or local government Legal Description agency S I B GOVERNMENT CENTER PB 168-075 T-23086 TR A LOT SIZE 18277 SQ FT M/L FAU 31 2211 005 0018 The Office of the Properly Appraiser is tontine*/edding and updating the tax roll.This webste may not reflect the most current Information on record.The Property Appraiser and Mani-Dade County assumes no liability,see ful disclaimer and User Agreement at htkr/I www miamidade.gadbfcilsclsfnerasp Version: I of 1 1/30/2015 9:01 AM 2014 roll details-Real Estate Account#31-2211-082-0010-TaxSys... https://www miamidade.county-taxes.com/public/real estate/parcels... miamicbde Govt • Tax Collector Home Search Reports Shopping Cart Please do not include any special characters in the name,address,and e-mail field such as#,&,hyphens,comma,dashes, We have moved.Our new address is: 200 NW 2nd Ave,Miami,FL 33126 The information contained herein does not constitute a title search or property ownership. 2014 Roll Details—Real Estate Account#31-2211-082-0010 Real Estate Account#31-2211-082-0010 Parcel details Latest bill ;.:1,1 Full bill history ( 2014 2013 2012 2011 2010 Paid Paid No taxes due No taxes due No taxes due Owner. DEZER UNIVERSAL LLC 18001 COLLINS AVE 31TH FL SUNNY ISLES BEACH,FL 33160 Stlus: (unknown) Account number. 31.2211.082-0010 Millage coda: 3100-SUNNY ISLES BEACH Mlllage rate: 19.32570 Assessed value: 1,238,667 School assessed value: 1,4912622 Flags VAB Pending t Block from Deed dueto VAB Property Appraiser 2014 annual bill d View Legal description Location Ad valorem: $25,962.30 s I B GOVERNMEN-T CENTER PB 169-075 Range:42E T-23086 TR A LOT SIZE 19277 SQ FP M/1. Non-ad valorem: $0.00 FAU 31 2211 005 0016 Tbwnship: 52S Total Discountable: 25952.30 Section: 11 No Discount NAVA: 0.00 Block: 10 Total tax: Use code: 1066 Total acres' 0.000 Paid 2014-11-20$24,914.21 Receipt#CHECK21-15-016631 I of 1 1/30/2015 9:01 AM • 1111111111111111 11111 1111111111 N1111111111 CFI$ 2012R0456$60 OR Bk 28167 Pss 2863 - 2865; (3oss) RECORDED 06/28/2012 09:52:03 DEED DOC TAX 421000.00 SURTAX 311500.00 Prepared b3': - HARVEY RUVINr CLERK OF COURT Record and Return to: MIAMI-DADE COUNTY, FLORIDA Luis Flores,Esq. do Amstein&Lehr LLP 200 South Biscayne Boulevard,Suite 3600 Miami,Florida 33131 Parcel Identification Nos: 31-2211-t182402A;31-2211-082-0010 1Space Above This Line For Recording Data] WARRANTY DEED THIS WARRANTY DEED made effective as of the 11th day of May,2012,by City of Sunny Isles Beach, a Florida Municipal Corporation, whose address is 18070 Collins Avenue, Sunny Isles Beach,Florida 33160,hereinafter referred to as "Grantor"to Dezer Universal,LLC, a Florida limited liability company,whose address is 18001 Collins Avenue,31"Floor,Sunny Isles Beach,Florida 33160, hereinafter referred to as"Grantee". (Whatever used hereunder the terms"Grantor" and"Grantee" include all the parties to this instrument and the heirs, legal representatives and assigns of individuals, and the successors and assigns of corporations and limited liability companies). WITNESSETH:That Grantor,for and in consideration of the sum of Ten($10.00)Dollars and other valuable consideration, the receipt whereof is hereby acknowledged,has granted, bargained and sold to Grantee,its successors and assigns,all of that certain real property located in Miami-Dade County,— Florida,described as follows(the"Property"): SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF AND Grantor hereby covenants with Grantee that Grantor is lawfully seized of said Property in fee simple that Grantor has good right and lawful authority to sell and convey the Property;and Grantor hereby fully warrants the title to the Property,and will defend the same against the lawful claims of all persons whomsoever,and that said Property is free of all encumbrances,except taxes accruing subsequent to December 31,2011. IN WITNESS WHEREOF,the Grantor has set Grantor's hand and seal as of the date first above written. Signed,sealed and delivered in the CITY OF SUNNY ISLES BEACH, a Florida presence of Municipal Corporation F44 4-1v eide.44/0„/ Print Naj_ryi :.-4"4"A4 /1. /z 1 f 1 Na A Nano: N an S.Edelcup Title: ayor iwL Name: SAS+-it .2.&,r+n2s 10131186.1 3 Book28167/Page2863 CFN#20120456860 Page 1 of 3 STATE OF FLORIDA ) COUNTY OF MIAMI-DADE ) The foregoing instrument was acknowledged before me this <1 day of May,2012,by Norman S.Edelcup,as Mayor of City of Sunny Isles Beach,a Florida Municpal Corporation,on its behalf,who is known to me or who has produced as identification. 4 ' 1✓1,1/r NOTARY PUBLIC NOTARY PUBLIC-STATE OF FLORIDA Harold M. Rifas a Commission#DD981940 Expires: APR.13,2014 EOM=THRUATUSTIC$OXD1N(Cal 10131166.1 Book28167/Page2864 CFN#20120456860 Page 2 of 3 • OR BK 28167 PG 2865 ' LAST PAGE EXHIBIT"A" ka Description All of Tracts A and B of the Nat of S.I.B.Government Center,according to the Plat thereof,as recorded in Nat Book 168,Page 75,of the Public Records of Miami-Dade County,Florida. Also known as: A portion of Plat of S.I.B.GOVERNMENT CENTER,according to the Plat thereof,as recorded in Plat Book 168,Page 75,of the Public Records of Miami-Dade County,Florida;more particularly described as: All of Parcel I, LESS the North 150 feet,as measured along the East line thereof,and LESS the South 499.145 feet as measured along the East line thereof,of the REPLAT OF TRACT"A"SUNNY ISLES SHORES SECTION A, according to the Plat thereof;recorded in Plat Book 64,Page 74,of the Public Records of Miami-Dade County,Florida. 10131188.1 Book28167/Page2865 CFN#20120456860 Page 3 of 3 InterFlood-List Flood Maps https://www.interflood.com/listmaps.aspx?Ion=-80.121757&tat=25.... InterFlood Instant flood maps and data — Real Stones Buy Get Maps My Account Questions a la mode Flood data Flood map color options LISPS Address:18080 Collins Ave InterFlood has access to over 111,000 current FEMA flood Sunny Isles maps.And with most(not all),you can customize their Beach FL 33160-2723 color,which makes them more appealing and highlights their zones. Community Name:DADE CO-FORMERLY METRO DADE CO Community#:0635 Current Color: 48' °R E County:Miami-Dade ZONE x rl i Census Tract:12086-0001.23 Flood Zone:AE I CHANGE COLOR To customize colors,make sure you're using Chrome or Internet Explorer rather than Firefox or Safari. Here's your flood map(s) Since It's possible for a property to be located on more than one flood map(tell me why),you may see more than one link below. In most cases,the first link will be the best map.When you click a link,the corresponding flood map will be displayed. at Flood Mao#1 for 18080 Collins Ave Map Panel: 12086C0153L-Map Date: 09/11/2009 a la mode, Inch The l edv Is mel estate udeoisw • Follow T'T rrcrlr❑n Twiter.Become an a le made fen on Farehook. a la mode and Its products are trademarks or registered trademarks of a la mode,Inc Other brand and product names are trademarks or registered trademarks of their respective owners. Copyright C'2015 a la mode,Inc.1-800-ALAMODE(252-6633)I Tenrs of use 1 of 1 2/4/2015 9:20 AM Prepared for: InterFlood Appraisal First sQiirem—to au)mode 18080 Collins Ave www.interfood.cam• 1-800-252-6633 Sunny Isles Beach,FL 33160-2723 / likilif '14_, ZONE 4 AE t ( Le) I , 11 - – II�i1�,FL00DSCAPE `i iill Flood Hat Map T �I I ZONE !11: Map Number x 11111: � 120860153L i �!11 rRecnve Date I' September 11,2008 i ZONE V ,11 � (EL 10) I' ■:111'• I 4ar 2QY 1 1 1 Fawrad L,,FloodSceres 817.n.FL000 I rw.eoodcourca.00ia 0 1990.7014 StaraPrase and/or FbodSauree Catperstions.1�6 rights rasrved.Patents 6.631.328 and 6,872.615.Other patents pending. For Info:bfaafbodeo o&c n_ \ SpNN71+,Ef -' ' p��. - Gam. \' , Asa q1' t - • ,r -- 0 City of Sunny Isles Beach r`. Y1 1� Zoning � fr , 7 I . • s'I Ir VA BD Business District / 1,-, $ I B-1 Neighborhood Business a; I - Community Facilities 4S r l ' Conservation F,`9I �' I MUR Mixed Use Resort R-1 Low Density Single Family - R-TH Moderate Density Townhouse '3 ,i 11111 Recreation&Open Space , IM RMF-1 Medium Density Multifamily RMF-2 High Density Multifamily X237 -TCD Town Center District . j Thic map or any ober map bind unite City's rebate are not offcalmeps of the(sty of Sunny talaa Bea h unless approved by 'i [ the Department of Economic Opport y(to:mery known ea -ti j - IG, Department of Community A461.$).O111det Gtye maps can be found ' - -i at the Office of the City Clair or at the Department of Economic Opportunity. N W-4:67).-E t a 0 0.2 OA Mlles rte. -,,: 0 Date:09-18-2014 Map:QM004 Adir CITY OF SUNNY LSLES BEACH - /444-i-rinirnc II t i www.sib8.net -.. - ♦r Sunny Isles Beach,FL Code of Ordinances about:blank 4 265-36,-Neighborhood Business(B-1). [Amended 11-20-2003 by Ord No.2003-184;1-15-2004 by Ord.No.200-192;4-11-2006 by Ord.No.257;4-11-2006 by Ord.No.257;12-14-2006 by Ord.No. 2006-272;6-20-2013 by Ord.No.2013-408;9-19-2013 by Ord.No.2013-411] A. Purpose.The Neighborhood Business District(B-1)is established to provide locations for convenience shopping facilities in which those retail commercial uses shall predominate that have a neighborhood-oriented market and which supply necessities that usually require frequent purchasing and with a minimum of consumer travel.Typical uses to be found in the Neighborhood Business District include a food supermarket,drugstore,personal service establishments,small specialty shops,and a limited number of small professional offices.Mixed-use developments that integrate residential over retail or office use are encouraged,especially to promote live/shop/work associations within the same site.They should be designed to be an integral,homogeneous component of the neighborhoods they serve,oriented to pedestrian traffic as well as vehicular. Because of the nature and location of the Neighborhood Business District,they should be encouraged to develop in compact centers under a unified design that is architecturally compatible with the neighborhood which they are located adjacent to.Further,such districts should not be so large or broad in scope of services as to attract substantial trade from outside the neighborhood.Lot assembly,however,shall be encouraged to promote enhanced at-grade pedestrian and bicycle circulation systems,greater site design efficiency,especially for parking,and reduced vehicular circulation drive impacts. B. Uses permitted.No building or structure,or part thereof,within the district shall be erected,altered or used,or land used in whole or in part for other than one or more of the following specific uses,subject to all other applicable standards and requirements contained in this chapter: (1) All uses permitted in the RMF-1 district. (2) Retail uses. (3) Banks and financial institutions. (4) Conservatories and music and dance schools. (5) Health spas and studios. (6) Hotels. (7) Offices:business,medical and professional. (8) Pet grooming and supplies with no kennels or overnight animal boarding. (9) Restaurants and coffee houses or dining rooms with incidental sales of alcoholic beverages. (10) Religious facilities. (11) Schools. (12) Post office and self-service postal stores for walk-up trade. (13) Telecommunications facilities. C. Conditional uses. (1) Open, unenclosed display and sales of flowers,fruits and vegetables as an accessory use to an adjacent established business housed in a permarent structure. (2) Open,unenclosed display and sales of retail merchandise from pushcarts and kiosks. (3) Temporary public markets,festivals and special events limited to three consecutive day periods. (4) Bars,taverns,lounges, provided that individual establishments shall not exceed 3,000 square feet in gross floor area. There shall he a 300-foot distance separation between any two such establishments.Bars,taverns,and lounges located within a hotel and without direct grade-level exposure and access to the building front setback area shall not he subject to the distance separation requirement. (5) Veterinarians and ancillary kennels fully enclosed. (6) Commercial jet skis and personal watercraft launching facilities.For the purpose of this Section,a personal watercraft is defined as a small,jet-powered craft,resembling a snowmobile in appearance and ridden like a motorcycle for individual use in water. (7) Commercial marinas or boat storage. (8) Non-motorized or motorized watercraft leasing or launching facilities. (Ord.No.2072-393,§2,70-18-2012) (9) Storage facilities. [Added 3-20-2014 by Ord.No.2014-422] D. Uses prohibited.The permitted uses listed in this district shall not be construed to include,either as a principal or accessory use,any of the following: (1) Adult entertainment as defined in Article II. 1 of 7 2/4/2015 10:52 AM Sunny Isles Beach,FL Code of Ordinances about:blank (2) Pawnshops. (3) Apartment-hotels. E. Site development standards. (1) Floor area ratio.Except as provided hereinbelow,the maximum floor area ratio shall be 2.0 for all uses.The floor area ratio may be increased only in accordance with the following bonus provisions and limitations and in accordance with the adopted Sunny Isles Beach Comprehensive Plan. (a) Enclosed parking bonus.The floor area ratios shall be increased by 0.40 for developments that provide 75%or more of the required on-site parking in enclosed structures that fully screen vehicles from exterior v'ews. (b) Sunny Isles Beach public parking bonus.The floor area ratios shall be increased for developments that participate in the City's Beach Public Parking Trust Fund,as established and administered by the City for the purposes of implementing capital improvements for public parking.Public parking resources,in particular west of Collins Avenue,as a component of infrastructure improvements to facilitate public access to the oceanfront,are a policy objective of the adopted City of Sunny Isles Beach Comprehensive Plan.A bonus of 0.05 ir.crease in the F.A.R.shall be granted for each participation unit contributed to the capital improvement fund designated for beach enhancements up to a maximum additional 0.25 F.A.R.bonus.A participation unit,for the purpose of the public parking trust fund bonus,shall be equal to$72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager.The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel.Additionally,the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. [Amended 12-13-2007 by Ord.No.2007-292] (Ord.No.2012-381,§3,2-16-2012) (c) Collins Avenue/Sunny Isles Boulevard public streetscape enhancement bonus.The floor area ratio shall be increased for developments that participate in the City's Public Streetscape Enhancement Trust Fund,as established and administered by the City for the purposes of implementing capital improvements.A bonus of 0.05 increase in the F.A.R.shall be granted for each participation unit contributed to the capital improvement trust fund designated for beach enhancements,up to a maximum additional 0.30 F.A.R.bonus.A participation unit,for the purpose of the streetscape enhancement bonus,shall be equal to$72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager.The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel.Additionally,the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. (Amended 12-13-2007 by Ord.No.2007-2921 (Ord.No.2012-381,§3,2-16-2012) (d) Site assembly bonus.For parcels over 20,000 square feet in area,the floor area ratio shall be increased by 0,05 for each additional 10,000 square feet of lot area,up to a maximum additional 0.50 FAR bonus. (2) Maximum dwelling unit density.The maximum dwelling unit density shall be as follows: (a) Apartments. Except as modified in Subsection E(3)below,the maximum number of residential dwelling units shall not exceed a density of 25 dwelling units per acre. (3) The maximum dwelling unit density shall be increased only in accordance with the following dwelling unit density bonus.provisions and limitations: (a) Dwelling unit density bonus.The maximum dwelling unit density may be increased by one dwelling unit per acre for each 0.02 increase in FAR granted in accordance with§265-36E(1)of the City Code,up to a maximum density of 80 dwelling units per acre. (b) Affordable housing density bonus.The maximum dwelling unit density with bonuses as provided in Subsection E(3)(a)above may increased by five units per acre to a maximum of 85 units per acre,provided the dwelling units achieved through this bonus comply with the affordable housing provisions of the Housing Element of the adopted Sunny Isles Beach Comprehensive Plan. (4) Maximum height of buildings abutting Atlantic Boulevard. (a) The maximum height of a building shall be 55 fee:above the centerline of the street for the sites that have a property line contiguous with an R-1 or R-TH District.That portion of a building within 100 feet of an RMF-zoned property shall be limited to three feet of building height over 35 feet above grade for every one foot of distance from the RMF District.The maximum height shall not exceed 190 feet. (b) Buildings abutting Collins Avenue.The maximum height shall not exceed 190 feet.The height of a building shall be 2 of 7 2/4/2015 10:52 AM Sunny Isles Beach,FL Code of Ordinances about:blank as follows: [1] For parcels with over 250 feet of depth,the maximum height for the building shall be 50 feet(four stories)for the first 130 feet set back from the front property line,100 feet(eight stories)for the next 100 feet,then 190 feet(19 stories). [2] For parcels between 150 feet and 250 feet of depth,the maximum height for the building shall be 50 feet(four stories)for the first 100 feet set back from the front property line,then 190 feet(19 stories). [3] For parcels with less than 150 feet depth the maximum height for the building shall be 50 feet(four stories)for the first 50 feet set back from the front property line,then 190 feet(19 stories). (5) Lot coverage.The total lot coverage permitted for all buildings,including parking on the site,shall be 80%. (6) Minimum setbacks. (a) Front: [1] Minimum of 25 feet for properties abutting Atlantic Boulevard. [2] Minimum of 25 feet for properties abutting Collins Avenue and which provide 15 feet of colonnade. [3] Minimum of 40 feet for properties abutting Collins Avenue and which do not provide 15 feet of colonnade. (b) Rear:minimum of five feet,except where the building abuts a residential district and Atlantic Boulevard,the setback shall be 15 feet.The setback shall be 25 feet where the building abuts Atlantic Boulevard.A minimum of 25 feet shall be required between openings(store front,windows,sliding glass doors in buildings,except for enclosed garage).Balconies may encroach a maximum of four feet into the setback. (c) Side:minimum of ten feet,except that where the building abuts a residential district,the setback shall be 15 feet.A minimum of 25 feet shall be required between openings(store front,windows,sliding glass doors in buildings, except for enclosed garage).Balconies may encroach a maximum of four feet into the setback. (7) Minimum lot width:100 feet. (8) Landscaped open space. (a) A minimum of 20%of the lot area shall be landscaped and improved with pedestrian walkways,courtyards,street furniture,lighting and plantings. (b) All properties abutting Collins Avenue shall provide a ten-foot easement within the required front setback.The easement shall be dedicated to the City for the implementation of the Collins Avenue Streetscape Plan.The City shall use the easement to increase the pedestrian walk paths,landscaping purposes,placement of utility wires and any other municipal purposes. (9) Minimum lot area:10,000 square feet. (10) Building separation on separate parcels abutting Collins Avenue.When there are two towers located on different property,a minimum separation of 50 feet shall be maintained between pedestals(50 feet or less in height)and a minimum separation of 100 feet shall be maintained between towers(above 50 feet in height). (a) When there are two or more towers on the same property,the building separation shall be a minimum of 50 feet between towers. (b) The maximum tower width shall be 200 feet. (11) Minimum unit size for hotel. (a) The minimum gross floor area for a hotel unit without a lockout room shall be 550 square feet and with a lockout room(s)shall be 750 square feet.Only one full kitchen facility is permitted per hotel unit,including the lockout,if any. (b) The minimum gross floor area for a lockout unit(room)shall be 350 square feet. (c) The minimum gross floor area for a hotel unit shall be 250 square feet. (d) For purposes of calculating the minimum required gross floor area of a unit,balconies may be included in such calculation but it shall not to exceed 15%percent of the total gross floor area of the unit. §265-38.-Business Overlay District. (Added 2-16-2006 by Ord.No.2006-245;amended 4-16-2009 by Ord.No.2009-320] A. Purpose and intent. (1) The Business Overlay District is established to encourage and provide locations for cultural and educational uses and facilities within the City of Sunny Isles Beach.The Business Overlay District is intended to be applied to and overlay the Mixed Use-Business Land Use category,outside of the Town Center District(TCD).This land use category is intended to provide services primarily for surrounding residential areas,neighboring communities and visitor populations in an environment oriented to the pedestrian and adjacent street frontages.The Business Overlay District is designed to supplement and complement the existing Neighborhood Business District(13-1)zoning category.If the Business Overlay 3 of 7 2/4/2015 10:52 AM Sunny Isles Beach,FL Code of Ordinances about:blank District imposes a greater restriction than the underlying district regulations,the Business Overlay District shall control. (2) The additional purposes of the Business Overlay District established in this section are: (a) To provide incentives for the granting of right-of-way easements or dedications for public vehicular use and public pedestrian paths; (b) To encourage a convenient,balanced multi-modal transportation system; (c) To enhance continuous pedestrian paths and pedestrian mobility; (d) To promote transit usage and public access to parks and open space; (e) To promote the extension of North Bay Road to facilitate pedestrian and vehicular access from 183rd Street to 185th Street. B. Permitted uses.No building or structure,or part thereof,within the Business Overlay District shall be erected,altered or used,or land used in whole or in part for other than one or more of the following specific uses,subject to all other applicable standards and requirements contained in this section: (1) All uses permitted in RMF-1 District. (2) Retail uses. (3) Banks and financial institutions. (4) Conservatories and music and dance schools. (5) Art school. (6) Performing arts center;live theater. (7) Art gallery. (8) Health spas and studios. (9) Hotels. (10) Offices:Business,medical and professional. (11) Pet grooming and supplies with no kennels or overnight animal boarding. (12) Restaurants and coffee houses or dining rooms with incidental sales of alcoholic beverages. (13) Religious facilities. (14) Schools. (15) Post office and self-service postal stores for walk-up trade. (16) Telecommunications facilities. (17) Education learning centers. C. Conditional uses. (1) All conditional uses provided for in the RMF-1 and B-1 zoning districts. (2) Commercial jet skis and personal watercraft launching facilities.For the purpose ofthis Section,a personal watercraft is defined as a small,jet-powered craft,resembling a snowmobile in appearance and ridden like a motorcycle for individual use in water. (3) Commercial marinas or boat storage. (4) Non-motorized or motorized watercraft leasing or launching facilities. (Ord.No.2012-393,5 2,10-18-2012) (5) Gaming facilities and bingo halls. (Added 11-21-2013 by Ord.Na 2013-4163 D. Prohibited uses.The permitted uses listed in this Business Overlay District shall not be construed to include,either as a principal or accessory use,any of the following: (1) Adult entertainment as defined in Article II. (2) Pawnshops, (3) Auto repair,gas stations,service stations,car washes. (4) Manufacturing facilities. (5) Wholesale,warehouse and distribution facilities. (6) Storage facilities. (7) Apartment hotels. E. Site development standards. (1) Floor area ratio.Except as provided hereinbelow,the maximum floor area ratio(FAR)shall be 2.0 for all uses.The FAR may be increased only in accordance with the following bonus provisions and limitations and In accordance with the 4 of 7 2/4/2015 1 0:52 AM Sunny Isles Beach,FL Code of Ordinances about:blank adopted Sunny Isles Beach Comprehensive Plan. (a) Enclosed parking bonus.The FAR shall be increased by 0.40 for developments that provide 75%or more of the required on-site parking in enclosed structures fully screening vehicles from exterior views. (b) Sunny Isles Beach public parking bonus.The floor area ratio shall be increased for developments that participate in the City's Beach Public Parking Trust Fund,as established and administered by the City for the purposes of implementing capital improvements for public parking.Public parking resources,in particular west of Collins Avenue,as a component of infrastructure improvements to facilitate public access to the oceanfront,is a policy objective of the adopted City of Sunny Isles Beach Comprehensive Plan.A bonus of 0.05 increase in the FAR shall be granted for each"participation unit"contributed to the capital improvement fund designated for beach enhancements up to a maximum additional 0.25 FAR bonus.A"participation unit;'for the purpose of the public parking trust fund bonus,shall be equal to$72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager.The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel.Additionally,the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. (Ord.No.2012-381,44,2-16-2012) (c) Collins Avenue/Sunny Isles Boulevard public streetscape enhancement bonus.The FAR shall be increased for developments that participate in the City's Public Streetscape Enhancement Trust Fund,as established and administered by the City for the purposes of implementing capital improvements.A bonus of 0.05 increase in the FAR shall be granted for each"participation unit"contributed to the capital improvements trust fund designated for beach enhancements up to a maximum additional 0.30 FAR bonus.A"participation unit,"for the purpose of the streetscape enhancement bonus,shall be equal to$72,000.00 and may be adjusted from time to time by the City Commission pursuant to a recommendation by the City Manager.The cost of a participation unit shall be determined by the amount of participation units purchased at the unit price multiplied by the total number of acres contained in the subject parcel.Additionally,the City Manager and/or his designee shall review the bonus participation unit price set forth herein every two years. (Ord.No.2012-381,4 4,2-16-2012) (d) Site assembly bonus.For parcels over 20,000 square feet in area,the FAR shall be increased by 0.05 for each additional 10,000 square feet of lot area up to a maximum additional 0.50 FAR bonus. (2) Maximum dwelling unit density.The maximum dwelling unit density shall be as follows: (Amended 9-19-2013 by Ord.No.2013-4111 (a) Apartments. Except as modified in Subsection E(3)below,the maximum number of residential dwelling units shall not exceed a density of 25 dwelling units per acre. (3) Dwelling unit density bonus.The maximum dwelling unit density shall be increased only in accordance with the following provisions and limitations: (a) Dwelling unit density bonus.The maximum dwelling unit density may be increased by one dwelling unit per acre for each 0.02 increase in FAR granted in accordance with§265-36E(1)of the City Code up to a maximum density of 80 dwelling units per acre. (b) Affordable housing density bonus.The maximum dwelling unit density with bonuses as provided in Subsection E(3)(a)above may increased by ten units per acre to a maximum of 85 units per acre,provided the dwelling units achieved through this bonus comply with the affordable housing provisions of the housing element of the adopted Sunny Isles Beach Comprehensive Plan. (4) Buildings abutting 185th Street.Except as provided below in Subsection E(4)(a),the maximum height of a building shall be 55 feet above the center line of the street for the sites that have a property line contiguous with an R-1 or R-TH District.That portion of a building within 100 feet of an RMF-zoned property shall be limited to three feet of building height over 35 feet above grade for every one foot of distance from the RMF District.The maximum height shall not exceed 190 feet. [Amended 12-14-2006 by Ord.No.2006-272J (a) Land dedication height bonus.Owners of land parcels within the Business Overlay District may dedicate land by easement to the City for use as a right-of-way in return for an increase in the overall permitted height in the Business Overlay District.Permitted height may be increased at the rate of 1.5 feet of height for each foot of width of public right-of-way that is dedicated to the City.The maximum width of the right-of-way shall not exceed 50 feet. Such easements shall be recorded in the public records and maintained as easements in perpetuity.The City Commission shall have the discretion to accept or reject the dedication depending on whether it will enhance pedestrian mobility and vehicular access,ease traffic congestion,and is otherwise in the best interest of the City. 5 of 7 2/4/2015 10:52 AM Sunny Isles Beach,FL Code of Ordinances about:blank The maximum height shall not exceed 265 feet.Notwithstanding the foregoing,sites that have a property line contiguous with an RMF-zoned property shall comply with Subsection E(4)above. (b) Street-level pedestrian promenade bonus.An owner of land adjacent to an R1,R-TH or RMF-1 zoned property may dedicate a public pedestrianway easement of not less than 20 feet in width to the City.Dedication of this easement, after approval by the City Commission,shall entitle the property owner to a 0.10 FAR bonus in accordance with§ 265-36E(1)of the City Code. (c) Dedicated land.Land dedicated pursuant to Subsections E(4)(a)and(b)shall be calculated as part of the lot's area for purposes of determining permitted density and floor area as well as compliance with all zoning requirements. (d) Building abutting Collins Avenue.Except as provided in Subsection E(4Xa)above,the maximum height shall not exceed 190 feet.The maximum height of a building shall be as follows: [1] For parcels with over 250 feet of depth,the maximum height for the building shall be 50 feet(four stories)for the first 130 feet set back from the front property line,100 feet(eight stories)for the next 100 feet,then 190 feet(19 stories). [2] For parcels between 150 feet and 250 feet of depth,the maximum height for the building shall be 50 feet(four stories)for the first 100 feet set back from the front property line;for the remaining dept of the parcel the building height permitted is 190 feet for a maximum overall height of 19 stories. [3] For parcels with less than 150 feet of depth,the maximum height for the building shall be 50 feet(four stories) for the first 50 feet set back from front property line,then 190 feet(19 stories). (5) Minimum setbacks. (Amended 12-142006 by Ord.No.2006-2721 (a) Front: [1] Minimum of 25 feet for properties abutting Atlantic Boulevard. [2] Minimum of 25 feet for properties abutting Collins Avenue and which provide 15 feet of colonnade. [3] Minimum of 40 feet for properties abutting Collins Avenue and which do not provide 15 feet of colonnade. (b) Rear.Minimum of five feet,except where the building abuts a residential district and Atlantic Boulevard,the setback shall be 15 feet.The setback shall be 25 feet where the building abuts Atlantic Boulevard.A minimum of 25 feet shall be required between openings(store front,windows,sliding glass doors in buildings,except for enclosed garage).Balconies may encroach a maximum of four feet into the setback. (c) Side:Minimum of ten feet,except that where the building abuts a residential district,the setback shall be 15 feet.A minimum of 25 feet shall be required between openings(store front,windows,sliding glass doors in buildings, except for enclosed garage). Balconies may encroach a maximum of four feet into the setback. (6) Minimum lot width:100 feet. (Amended 12-14-2006 by Ord.No.2006-2721 (7) Landscaped open space. [Amended 12-14-2006 by Ord.No.2006-2721 (a) A minimum of 20%of the lot area shall be landscaped and improved with pedestrian walkways,courtyards,street furniture,lighting and plantings. (b) All properties abutting Collins Avenue shall provide a ten-foot easement within the required front setback.The easement shall be dedicated to the City for the implementation of the Collins Avenue Streetscape Plan.The City shall use the easement to increase the pedestrian walk paths,landscaping purposes,placement of utility wires and any other municipal purposes. (8) Lot coverage.The total lot coverage permitted for all buildings,including parking on the site,shall be 80%. (Amended 12-14.2006 by Ord.No.2006-2721 (9) Minimum lot area:10,000 square feet. (Amended 12-14-2006 by Ord.No.2006-2721 (10) Building separation on separate parcels abutting Collins Avenue.When there are two towers located on different property,a minimum separation of 50 feet shall be maintained between pedestals(50 feet or less in height)and a minimum separation of 100 feet shall be maintained between towers(above 50 feet in height). (Added 12-14-2006 by Ord.No.2006-2721 (a) When there are two or more towers on the same property,the building separation shall be a minimum of 50 feet between towers. (b) The maximum tower width shall be 200 feet. 6 of 7 2/4/2015 10:52 AM Sunny Isles Beach,FL Code of Ordinances about:blank F. Boundaries of district.The boundaries of the Business Overlay District shall be 185th Street on the north and 178th Street on the south.Collins Avenue on the east,Atlantic Boulevard and the Intracoastal Waterway on the west. G. Amendment of Zoning Map.The City's Zoning Map shall be amended to reflect the Business Overlay Zoning District. 7 of 7 2/4/2015 10:52 AM a® AppraisalFirst Real Estate Appraisers LLC 1444 Biscayne Boulevard,Suite 21 I Miami,Florida 33132 Phone:305470-2130 Fax:305-470-2159 Esnail;residential(aapraisalfirstnet Email: COMITiercialgaPtmaisalfirstnet January 29,2015 Mr.Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue,4th FL Sunny Isles Beach,FL 33160 Via Email: hottinot@sibfl.net Re: A commercial site located at 18000 Collins Avenue, Sunny Isles Beach,Florida. Dear Mr. Ottinot: Ipropose to furnish you with Appraisal Report setting forth the current Market Value for the above referenced subject property. The report will contain the level of data and analysis as stated under Standard 2-2(a) of the Uniform Standards of Professional Practice (USPAP). The reports will conform to the Standards ofPractice and Code of Ethics of the Appraisal Institute and the guidelines according to the 2014-2015 edition of USPAP. The report is also in conformance with the Interagency Appraisal and Evaluation Guidelines,Federal Register,Volume 75,No.237,December 10,2010. The appraisal reports will include all applicable approaches to value. The total fee for the appraisal services will be$1,500. You may indicate your acceptance by returning a signed copy of this letter. The time frame is complete the appraisal will be one week. The total fee is due upon completion of the assignment. The intended use of the appraisal report will be to assist the client in establishing a fair purchase price for the property. The intended user is the client stated herein. Once completed and delivered readdressing the appraisal reports to another party or client is prohibited by USPAP. Once an assignment is completed,it is misleading to try to add a new party as client or intended user who was not the original client or identified intended user." Readdressing the appraisal will be considered a new assignment with a potential additional fee. Mr.Hans Ottinot Page Two Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion,the attainment of a stipulated result,or the occurrence of a subsequent event directly related to the intended use of this appraisal. The fee that is being paid for this appraisal is a non-refundable deposit. Further,AppraisalFirst makes no assurance,representation or warranty that the appraised values of the subject properties will benefit or assist the client in said intended use of the appraisal reports. This engagement is solely predicated upon valuation services and not court preparation,associated conference time or testimony.Additional time related to expert witness testimony and/or preparation will be billed at an hourly rate of$300. Thank you very much for the opportunity of serving you. Respectfully submitted, • 1/ Frank Hornstein,MAI State Certified General Real Estate Appraiser,No.RZ 1376 I hereby an i•rize yo to roceed with the appraisal. OPP7. 4r Signature D,to QUALIFICATIONS OF FRANK A. HORNSTEIN,MAI State-Certified General Real Estate Appraiser No. RZ 1376 frank@ appraisalfirst.net EXPERIENCE: Owner/Appraiser- AppraisalFirst-2010 to present Officer/Appraiser- AppraisalFirst, Inc. -2005 to 2010 Commercial Appraiser- AppraisalFirst, Inc. - 1993 to 2005 Commercial Appraiser-Ames Appraisal Services - 1989 to 1993 PROFESSIONAL AFFILIATIONS: Member of the Appraisal Institute, MAI STATE OF FLORIDA LICENSES: State-Certified General Appraiser,No. RZ 0001376 Real Estate Broker,No. 0534448 EDUCATION: B.S., Florida State University, Tallahassee, FL - 1989 Major: Real Estate and Finance RECENT CONTINUING EDUCATION: -The Appraiser as an Expert Witness,Appraisal Institute, 2014 -USPAP Updated, Appraisal Institute, 2014 -USPAP Updated, Appraisal Instihrte, 2012 -Review Appraising,Appraisal Institute, 2012 -Business Ethics,Appraisal Institute, 2011 -Hotel Valuation, Appraisal Institute, 2010 -Effective Appraisal Writing, Appraisal Institute, 2010 -Hotel/Motel Valuation, Appraisal Institute, 2008 - Spotlight on USPAP: Hypothetical&Extraordinary, Appraisal Institute, 2008 -Litigation Skills for the Appraiser, Appraisal Institute, 2008 APPLICATIONS OF APPRAISALS: Mortgage Loan litigation(Expert Witness) Securities Lending Purchase or Sale Foreclosure Proceedings Estate Bankruptcy TYPES OF PROPERTIES APPRAISED: Industrial Buildings Single Family Subdivisions Office Buildings Vacant Residential &Commercial Land Rental Apartments Retail/Showroom Rental Townhouses Manufacturing Buildings Shopping Centers Vacant Industrial Land Leasehold Interest Religious Facilities Hotels &Motels Gas Stations Restaurants Townhouse Subdivisions Airport Hangars &FBO's Condominium Projects Geographical Areas Served: Miami-Dade Broward Monroe Palm Beach RICK SCOTT,GOVERNOR KEN LAWSON,SECRETARY STATE OF FLORIDA • DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION ,; , FLORIDA REAL ESTATE APPRAISAL BD ,;d LICENSE NUMBER 41 # e, RZ1376 rK The CERTIFIED GENERAL APPRAISER Named below IS CERTIFIED ;.. Under the provisions of C,lapter 475 FS. Expiration date: NOV 30,2016 HORNSTEIN, FRANK ALLEN + 1444 BISCAYNE BOULEVARD SUITE 211 ir � ; MIAMI FL 33132 • ,r pt t ,t ❑ . '' .F ISSUED: 08128!2014 DISPLAY AS REQUIRED BY LAW SEQ# L1408280005176 •