HomeMy WebLinkAboutReso 2007-1183
-I
RESOLUTION NO. 2007-JJ.13
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF SUNNY ISLES BEACH, FLORIDA, APPROVING A
LETTER OF AGREEMENT AND ADDENDUM TO THE
AGREEMENT WITH ROBERT N. CORNFELD, PRESIDENT,
NEWPORT OPERATING CORPORATION, FOR
REPLACEMENT OF' THE SUNNY ISLES BEACH FISHING
PIER, ATTACHED HERETO AS COMPOSITE EXHIBIT "A";
AUTHORIZING THE CITY MANAGER TO DO ALL THINGS
NECESSARY TO EFFECTUATE THE TERMS OF THE
AGREEMENT; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the property designated as Sunny Isles Beach Pier (a/k/a Newport Pier),
located at 16701 Collins A venue was designated by the Miami-Dade County Historic
Preservation Board as a historic site on January 21, 1982, and re-designated as a historic site on
June 6, 2005, by the Sunny Isles Beach Historic Preservation Board; and
WHEREAS, the Sunny Isles Beach Pier sustained major damage during Hurricane
Wilma; and
WHEREAS, the City wishes to partnership with Newport Operating Corporation (Dr.
Robert Cornfeld, President) to equally share all costs for design, removal, and replacement of the
entire pier structure; and
WHEREAS, Dr. Cornfeld's contribution will not exceed Two Million Dollars
($2,000,000.00) and will be paid to the City within thirty (30) days of invoice; and
WHEREAS, in conjunction with that effort the City wishes to enter into a Letter of
Agreement and an Addendum to the Letter of Agreement with Robert M. Cornfeld, President,
Newport Operating Corporation, subject to the terms and conditions described in the Letter of
Agreement, attached hereto as Composite Exhibit "A".
NOW THEREFORE, BE IT RESOLVED BY THE HISTORIC PRESERVATION
BOARD OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Letter of Agreement and Addendum. The Letter of Agreement and
Addendum to the Letter of Agreement with Robert M. Cornfeld, President, Newport Operating
Corporation, for replacement of the Sunny Isles Beach Fishing Pier, attached hereto as
Composite Exhibit "A", be and the same, is hereby approved.
Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all
things necessary to effectuate the terms of this Agreement.
Section 3.
Effective Date. This Resolution will become effective upon adoption.
PASSED AND ADOPTED this 13th day of December 2007.
Rcsolution No. 2007 -
N cwport Picr
Pagc 1 of 2
ATTEST:
~alru A ~
Jane A. Hines, CMC, City Clerk
Vote: 5-0
Mayor Edelcup
Vice Mayor Thaler
Commissioner Brezin
Commissioner Goodman
Commissioner Scholl
Rcsolution No. 2007 -
N cwport Picr
--I
Moved by: Co~~~~2.'''''J
Seconded by: ~ c...'i'. frjAl{OR- TH I4-L ~1C...
v (Yes)
\,../'"(Y es)
L/"(y es)
V (Yes)
V(Y es)
_(No)
_(No)
_(No)
_(No)
_(No)
Pagc 2 of 2
Sunny Isles Beach, Florida 33160
305.947.0606
www.sibfLnet
- -
City Commission
Norman S. Edelcup
Mayor
November 28, 2007
Lewis J. Thaler
Vice Mayor
Roslyn Brezin
Commissioner
Robert M. Cornfeld
President
Newport Operating Corporation
3850 Hollywood Boulevard, Suite 400
Hollywood, Florida 33021
Gerry Goodman
Commissioner
Donny Iglesias
Commissioner
Re: Letter of Agreement for Replacement of Sunny Isles Beach Fishing
Pier
A. John Szerlag
City Manager
Dear Dr. Cornfeld:
Hans Ottino!
City Attorney
Jane A. Hines
City Clerk
As we discussed, removal and replacement of the fishing pier needs to be
accomplished in an expedient fashion. This is because the structure east of the
shore-line is structurally deficient. Given this, I'm prepared to recommend to the
Mayor and Commission the following elements of a public private partnership:
I. The City of Sunny Isles Beach and Newport Operating Corporation
(herein after referred as "Cornfeld") will agree to equally share all
costs for design, removal, and replacement of the entire pier structure
(both east and west of the erosion control line). However, Cornfeld's
contribution will not exceed Two Million Dollars ($2,000,000)
Payments will be made to the City by Cornfeld within 30 days of
InVOIce.
2. The City will control the entire project, but will provide Cornfeld with
an opportunity to provide input on the final design.
3. Any funds received from other governmental agencies toward this
project will be used to defray project costs.
4. The City of Sunny Isles Beach will be the lessee with the State of
Florida for the fishing pier. And all major repairs as well as property
and casualty insurance costs to the entire pier structure will be the
responsibility of the City of Sunny Isles Beach.
5. The City will select the firm that occupies the restaurant portion of the
fishing pier.
6. Residents of the City and guests of the Newport Hotel can use the
fishing pier at no cost.
R. Comfeld - Fishing Picr Agrccment Ltr.
I f'l) 111 :
Date.
P~I~e .
\. Jllhn ')/erla~
"-0\ ember 2:-<.2007
2 on
7.
All net revenues obtained from the fishing pier and restaurant lease
will be shared equally between Cornfeld and the City of Sunny Isles
Beach, so long as the cost for design, removal, and replacement of the
Pier structure does not exceed Four Million Dollars ($4,000,000). If
the City's share for design, removal and replacement of the pier
structure is greater than Two Million Dollars ($2,000,000), the City
will receive 75% of the net revenues until the additional cost incurred
by the City is equalized compared with Cornfeld's contribution of Two
Million Dollars ($2,000,000). Following is an example of this
calculation:
City share project cost
Cornfeld share project cost
Total project cost
$3 Million
$2 Million
$5 Million
Additional cost incurred by the City
$1 Million
First year total net revenues
First year City share revenues
First year Cornfeld share revenues
$100,000
$75,000
$25,000
Net revenues include operation and maintenance cost, and
excludes costs set forth in paragraph 4 above.
In the above example, the City will receive 75% of the net revenue
until the additional One Million Dollars ($1,000,000) expenditure
by the City is recovered. After the City recovers its additional
expenditure, net revenues will be shared equally.
8. If all necessary permits have not been obtained from all governmental
agencies by February 2009, then this agreement shall be null and void.
9. Neither party shall be required to perform under this agreement if the
Pier is destroyed permanently by Acts of God which include but are
not limited to hurricanes, earthquakes, and tornadoes.
R. Comfcld - Fishing Picr Agrccmcnt J .tr.
i rom: \. John :vcrlag
Datc: No\ cl1lh\..'r 2X. 2007
Pagc: _, or.")
This letter agreement is subject to approval of the City Commission. The
agreement is binding upon both parties and its successors, and assigns upon
execution and the approval of the City Commission. Please review and execute
below if you are in agreement with the terms of this letter.
cc: Hans Ottinot, City Attorney
Newport Operating Corporation
R. Comfcld - Fishing Picr Agrecment Ltr.
PLEDGED COLLATERAL ACCOUNT CONTROL AGREEMENT
AGREEMENT dated as of March 3, 2008, among DR. ROBERT M. CORNFELD,
PRESIDENT NEWPORT OPERATING COMPANY, having an address at 3850 Hollywood
Blvd, Suite 400 Hollywood, FL 33021 ("Pledgor"), CITY OF SUNNY ISLES BEACH, with an
address at 18070 Collins Ave, Sunny Isles Beach, FL 33160 ("Secured Party") and LEHMAN
BROTHERS INC., a Delaware corporation, having its principal office at 745 7th Avenue New
York,NY 10019 ("Intermediary").
WITNESSETH THAT:
WHEREAS, Intermediary maintains securities account numberZ-32-3S(pf , titled
"JEFFREY CORNFELD TTEE NEWPORT OPERATING CORP 2003 IRREV TRUST DTD
01/01/2003 pledged collateral account FBO CITY OF SUNNY ISLES BEACH" for the
purchase, sale and holding of securities and other property (the "Account"); and
WHEREAS, the Pledgor has granted to the Secured Party a security interest in the
Account pursuant to a certain Promisorry Note dated February 4, 2008 (the "Pledge
Agreement"), between the Pledgor and the Secured Party;
WHEREAS, the Secured Party and the Pledgor each desire to enter into this Agreement,
in order, among other things, to attach and perfect the Secured Party's security interest in the
Account; and
WHEREAS, the Intermediary is willing to serve as intermediary pursuant to, and subject
to, the terms of this Agreement.
The parties hereby agree as follows:
1. Pledgor and Secured Party hereby notify Intermediary that by separate agreement
Pledgor has granted Secured Party a security interest in the Account and all
financial assets and other items therein. Intermediary acknowledges being so
notified and confirms that it has no actual knowledge or notice or any restraint,
security interest, lien or other adverse claim in or to the Account or any item
therein. All items in the Account shall be treated as "financial assets" within the
meaning of the New York Uniform Commercial Code (the"Code").
2. Unless otherwise agreed to by the parties in writing, Pledgor will maintain at least
$1.5 million in cash and/or AAA municipal bonds or the equivalent in the
Account during the term of this Agreement and prior to Intermediary's receipt of a
Notice of Exclusive Control (as that term is defined below). Prior to
Intermediary's receipt of a Notice of Exclusive Control, permitted investments for
the Account are limited to interest bearing securities or instruments. Except as
otherwise provided below, Intermediary shall comply with entitlement orders
received from Pledgor (without further consent by Secured Party) until
•
Intermediary has received a notice purporting to be signed and sent by the Secured
Party in substantially the form attached as Exhibit A hereto (a "Notice of
Exclusive Control"); provided, Intermediary agrees that it shall not permit
withdrawals of securities and other property (including, but not limited to, interest
or dividends) from the Account by Pledgor except upon receipt of prior written
notice from Secured Party, and Pledgor agrees that Intermediary shall not be liable
to Pledgor for any refusal by Intermediary to permit any such withdrawal except
upon receipt of such prior written notice. After receipt of a Notice of Exclusive
Control, Intermediary shall not honor any entitlement orders from Pledgor, nor
shall Intermediary distribute to Pledgor any securities or other property (including,
but not limited to, interest or dividends) in the Account. After receipt of a Notice
of Exclusive Control, Intermediary shall comply with all entitlement orders
(including, but not limited to, requests for withdrawals) received from Secured
Party (without further consent from Pledgor) concerning the Account. Any Notice
of Exclusive Control received by Intermediary after 4:00 p.m. (E.S.T.) on any
business day shall not be deemed effective until the opening of business on the
next succeeding business day. Notwithstanding the foregoing: (i) all transactions
relating to the Account or any items therein duly consummated or processed by
Intermediary prior to its receipt of a Notice of Exclusive Control (or duly
commenced by Intermediary prior to any such receipt and so consummated or
processed thereafter) shall be deemed not to constitute a violation of this
Agreement; (ii) Intermediary may (at its discretion and without any obligation to
do so) commence honoring solely Secured Party's entitlement orders concerning
the Account at any time or from time to time after it becomes aware that Secured
Party has sent to it a Notice in clause (i) above with no liability whatsoever to
Pledgor or any other party for doing so; and (iii) Intermediary shall not change the
name or account number of the Account without having received the Secured
Party's prior express written consent thereto.
3. Intermediary waives, releases and agrees not to assert, exercise or claim any lien,
encumbrance, right (including setoff right) or other claim against the Account or
any financial asset, cash balance or other item therein, except with respect to
payment (i) of customary fees and commissions with respect to the routine
maintenance and operation of the Account (including, unless otherwise agreed to,
the $2000 pledge collateral account fee which will be debited from the Account
by Intermediary) if, in either case, Pledgor fails to pay those fees and
commissions within 10 days of receipt of an invoice thereto or (ii) for financial
assets duly purchased for the Account in accordance with the provisions hereof.
Intermediary shall neither advance margin or other credit against the Account, nor
hypothecate any financial assets carried in the Account, without the prior written
consent of Secured Party. Except as required by law, Intermediary shall not agree
with any other person or entity that it will comply with any withdrawal, transfer,
payment and redemption instruction, or any items therein, without the prior
written consent of Secured Party and any such agreement entered into without
such consent shall be null and void.
-2-
t At°
•
4. Anything to the contrary in this Agreement notwithstanding: (i) Intermediary
shall have only the duties and responsibilities expressly set forth in writing herein
(and in its standard securities account documentation and terms and conditions as
in effect from time to time, all of which shall apply to the Account to the extent
not inconsistent with this Agreement) and shall not be deemed to be a fiduciary
for any party hereto; (ii) Intermediary shall be fully protected in acting or
refraining from acting in good faith on any written notice, instruction or request
purportedly furnished to it by Secured Party in accordance with the terms hereof,
in which case the parties hereto agree that Intermediary has no duty to make any
further inquiry whatsoever; (iii) Intermediary shall not be liable to any party
hereto or any other person for any action or failure to act under or in connection
with this Agreement except for its own gross negligence or willful misconduct
(and, to the maximum extent permitted by law, shall under no circumstances be
liable for indirect, special, punitive or consequential damages); and (iv) the
Pledgor hereby indemnifies Intermediary for, and holds Intermediary harmless
against, any loss, cost, liability or expense (including reasonable inside or outside
counsel fees and disbursements) incurred or suffered by Intermediary arising out
of or in connection with this Agreement or the Account, except as may result from
its willful misconduct or gross negligence; (v) Intermediary shall not be liable to
the Secured Party for any decrease in value of the property for any reason
including, by way of illustration and not limitation, liability for decreases in value
resulting from transactions recommended by Intermediary or its employees or
agents. Intermediary expressly has no obligation to advise either of the other
parties of any decrease in the value of the Account at any time.
5. All notices shall be in writing and sent to the parties hereto at their respective
addresses set forth below (or to such other address as any such party shall
designate in writing to the other parties from time to time):
Pledgor: ROBERT M. CORNFELD, PRESIDENT
NEWPORT OPERATING CORPORATION
3850 HOLLYWOOD BLVD, SUITE 400
HOLLYWOOD, FL 33021
Secured Party: CITY OF SUNNY ISLES BEACH
Attn: City Manager
CC: City Attorney
18070 COLLINS AVE
SUNNY ISLES BEACH, FL 33160
Intermediary: LEHMAN BROTHERS INC
399 PARK AVE, 6TH FLOOR
NEW YORK, NY 10022
-3-
4
•
Pledgor shall direct Intermediary to send, and Intermediary will send copies of all
statements and confirmations for the Account simultaneously to Pledgor and
Secured Party.
6. This Agreement: (i) may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument; (ii) shall become effective when counterparts
hereof have been signed by the parties hereto; and (iii) shall be governed by and
construed in accordance with the laws of the State of New York, which shall also
be deemed to be the Intermediary's location. This is intended to be "an
agreement" within the meaning of Section 8-110(e) of the Code and the terms
"financial assets" and "entitlement orders" herein shall include the respective
meanings given such terms in Article 8 of such Code.
7. The Pledgor hereto consents to the non-exclusive jurisdiction of the State and
Federal courts in the City of New York and agrees that suit may be brought
against the Pledgor in those courts or in any other jurisdiction in which the
Pledgor or any of its assets subject to this Agreement may be found and the
Pledgor irrevocably submits to the jurisdiction of those courts. The Pledgor
consents to the service of process by mailing copies of process to at its most
recent mailing address in the records of the Secured Party or the Intermediary.
The Pledgor further agrees that any action or proceeding brought against the
Intermediary may be brought only in a New York State or United States Federal
court sitting in New York County.
8. Each reference herein to directions or instructions to be given to the Intermediary
by Secured Party shall, if given by any agents or assigns of the Secured Party, be
deemed to be given by Secured Party.
9. Intermediary may terminate this Agreement upon the sending of at least thirty(30)
days' advance written notice to the other parties hereto. Any other termination or
any amendment or waiver of this Agreement shall be effected solely by an
instrument in writing executed by all the parties hereto. In the event of such
termination, Intermediary shall deliver the pledged collateral to the Secured Party
at the address set forth on the first page of this Agreement.
10. In the event of any conflict between this Agreement (or any portion thereof) and
any other agreement now existing or hereafter entered into, the terms of this
Agreement shall prevail.
-4-
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
date first above written.
Pledgor: ,
LI /Z 'Z/7
2
Customer Signature
Customer Name: / .P&vro rt oi7 u, c_�t-,--,
Secured Party:
[Se red Party]
By: 6,v44,ii 4d6/47,(7
N e: Norman S. Edelcup
Title: Mayor
Intermediary:
LEHMAN BROTHERS INC.
By: �l C .1.
Name: C bI dC /q Q/LE
Title: Strio- /10,41A, Aie
-5-
•
SAMPLE DOCUMENT
EXHIBIT A
SECURITIES ACCOUNT NOTICE OF EXCLUSIVE CONTROL
[DATE]
LEHMAN BROTHERS INC.
399 Park Avenue, 6th Floor
New York,NY 10022
Attention: PIM Legal/Pledge accounts
Re: Account Control Agreement dated as of (the "Agreement")
among Dr. Robert M. Cornfeld, President Newport Operating Company,
City of Sunny Isles Beach and Lehman Brothers Inc. ("Intermediary")
relating to Account No.
Ladies and Gentlemen:
This constitutes the Notice of Exclusive Control referred to in paragraph 2 of the Agreement.
[Secured Party]
By:
Name:
Title:
-6-
Jane Hines
From:
Sent:
To:
Subject:
Douglas Haag
Monday, March 03, 2008 3:05 PM
Jane Hines
FW: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Cornfeld Pledge Ctrl-PREFERRED 3 (2008LFINAL.DOC
Attachments:
Cornfeld Pledge
Ctrl-PREFERRED.. .
Jane - Can you get me 3 signed copies of the attached agreement with Dr
Cornfeld and Lehman Brothers. I'll then forward on to Dr. Cornfeld for signature. Hans
has already reviewed and approved.
Thanks,
Doug Haag
Assistant City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Phone 305-792-1775
Fax 305-792-1641
dhaag@sibfl. net
www.sibfl.net
-----Original Message-----
From: Douglas Haag
Sent: Monday, March 03, 2008 11:47 AM
To: Hans Ottinot
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Hans - I've added the date of the promissory note to the Pledge Agreement and it looks
like this has all of the changes we requested. When you get a chance could you take a
look at it as well and make sure. If it's Ok, I'll get the 3 signed copies to forward to
Dr. Cornfeld to execute.
Thanks,
Doug Haag
Assistant City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Phone 305-792-1775
Fax 305-792-1641
dhaag@sibfl.net
www.sibfl.net
-----Original Message-----
From: Lamar, Mario [mailto:mario.lamar@lehman.com]
Sent: Friday, February 29, 2008 11:21 AM
To: Douglas Haag; rmc@cornfeldgroup.com; Hans Ottinot
1
S~bject.: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Here you go.
Thanks
-----Original Message-----
From: Douglas Haag [mailto:dhaag@sibfl.net]
Sent: Friday, February 29, 2008 11:21 AM
To: Lamar, Mario; rmc@cornfeldgroup.com; Hans Ottinot
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
No problem - can you please send me a fresh copy.
Thanks,
Doug Haag
Assistant City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Phone 305-792-1775
Fax 305-792-1641
dhaag@sibfl.net
www.sibfl.net
-----Original Message-----
From: Lamar, Mario [mailto:mario.lamar@lehman.com]
Sent: Friday, February 29, 2008 10:57 AM
To: Douglas Haag; rmc@cornfeldgroup.com; Hans Ottinot
Subject: Re: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Doug,
I just need you and Dr. Cornfeld to execute the pledge agreement before we sign it. Please
execute and forward to Dr Cornfeld for signature and then he will send it to us. Please
sign three copies so all parties can have any original.
Regards,
ML
----- Original Message -----
From: Douglas Haag <dhaag@sibfl.net>
To: Lamar, Mario; Dr. Cornfeld <rmc@cornfeldgroup.com>; Hans Ottinot <hottinot@sibfl.net>
Sent: Fri Feb 29 10:45:23 2008
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Mario - Here is a copy of the signed promissory note. Please let me know if you need
anything else to execute the pledge agreement.
Thanks again,
Doug Haag
Assistant City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
2
Phone )05-792-1775
F~x 305-792-1641
dhaag@sibfl.net
www.sibfl.net
-----Original Message-----
From: Lamar, Mario [mailto:mario.lamar@lehman.com]
Sent: Thursday, February 28, 2008 11:51 AM
To: Douglas Haagi Dr. Cornfeldi Hans Ottinot
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Doug/Hans,
I still haven't received a fully executed document. Please give me an update.
Thanks,
ML
-----Original Message-----
From: Douglas Haag [mailto:dhaag@sibfl.net]
Sent: Wednesday, February 13, 2008 10:03 AM
To: Lamar, Marioi Dr. Cornfeldi Hans Ottinot
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Mario - Can you please send me a copy of the final pledge agreement so that we can obtain
signatures and city commission ratification.
Thanks,
Doug Haag
Assistant City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Phone 305-792-1775
Fax 305-792-1641
dhaag@sibfl.net
www.sibfl.net
-----Original Message-----
From: Lamar, Mario [mailto:mario.lamar@lehman.com]
Sent: Monday, February 11, 2008 11:07 AM
To: Douglas Haagi Dr. Cornfeldi Hans Ottinot
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Doug,
I would suggest that you sign the agreement and then send to Dr.
Cornfeld for his signature after which time copies will go out to all parties. I will
open the account and make sure you get copies of the statements.
If you have any other questions, please let me know.
Regards,
Mario
-----Original Message-----
From: Douglas Haag [mailto:dhaag@sibfl.netl
3
Sent: F;Liday, February 08, 2008 8:40 AM
To: Lamar, Mario; Dr. Cornfeld; Hans Ottinot
Subject: RE: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Mario and Dr. Cornfeld - We don't have any further changes to the pledge agreement. Also,
I believe Hans has the promissory note ready for signature. Please advise as to next
steps re: signatures.
Thanks again and have a great weekend!
Doug Haag
Assistant City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33160
Phone 305-792-1775
Fax 305-792-1641
dhaag@sibfl.net
www.sibfl.net
-----Original Message-----
From: Lamar, Mario [mailto:mario.lamar@lehman.coml
Sent: Thursday, January 31, 2008 9:54 AM
To: Douglas Haag; Dr. Cornfeld
Subject: Cornfeld Pledge Ctrl-PREFERRED 3 (2008)
Gentlemen,
Attached is a revised pledge agreement. Please review.
There was also a question regarding the words "entitlement orders". I was informed that
you review UCC Article 8 to get a clear understanding of the meaning. You can view the
article through the following link, http://www.law.comell.edu/ucc/8/overview.html. All
it really says is that we must take order from Dr. Cornfeld unless we receive the notice
of control.
If you have any other questions, please let me know.
Thank You,
ML
<<Cornfeld Pledge Ctrl-PREFERRED 3 (2008) . DOC>>
This message is intended only for the personal and confidential use of the designated
recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is
strictly prohibited. This communication is for information purposes only and should not
be regarded as an offer to sell or as a solicitation of an offer to buy any financial
product, an official confirmation of any transaction, or as an official statement of
Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free.
Therefore, we do not represent that this information is complete or accurate and it should
not be relied upon as such. All information is subject to change without notice.
IRS Circular 230 Disclosure:
Please be advised that any discussion of U.S. tax matters contained within this
communication (including any attachments) is not intended or written to be used and cannot
be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed herein.
PLEASE NOTE: FLORIDA HAS A VERY BROAD PUBLIC RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO
4
OR FRO~ CITY OFFICIALS REGARDING CITY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC
AND MEDIA UPON REQUEST. YOUR E-MAIL COMMUNICATIONS MAY THEREFORE BE SUBJECT TO PUBLIC
DISCLOSURE.
This message is intended only for the personal and confidential use of the designated
recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is
strictly prohibited. This communication is for information purposes only and should not
be regarded as an offer to sell or as a solicitation of an offer to buy any financial
product, an official confirmation of any transaction, or as an official statement of
Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free.
Therefore, we do not represent that this information is complete or accurate and it should
not be relied upon as such. All information is subject to change without notice.
IRS Circular 230 Disclosure:
Please be advised that any discussion of U.S. tax matters contained within this
communication (including any attachments) is not intended or written to be used and cannot
be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed herein.
PLEASE NOTE: FLORIDA HAS A VERY BROAD PUBLIC RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO
OR FROM CITY OFFICIALS REGARDING CITY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC
AND MEDIA UPON REQUEST. YOUR E-MAIL COMMUNICATIONS MAY THEREFORE BE SUBJECT TO PUBLIC
DISCLOSURE.
This message is intended only for the personal and confidential use of the designated
recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is
strictly prohibited. This communication is for information purposes only and should not
be regarded as an offer to sell or as a solicitation of an offer to buy any financial
product, an official confirmation of any transaction, or as an official statement of
Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free.
Therefore, we do not represent that this information is complete or accurate and it should
not be relied upon as such. All information is subject to change without notice.
IRS Circular 230 Disclosure:
Please be advised that any discussion of U.S. tax matters contained within this
communication (including any attachments) is not intended or written to be used and cannot
be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed herein.
PLEASE NOTE: FLORIDA HAS A VERY BROAD PUBLIC RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO
OR FROM CITY OFFICIALS REGARDING CITY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC
AND MEDIA UPON REQUEST. YOUR E-MAIL COMMUNICATIONS MAY THEREFORE BE SUBJECT TO PUBLIC
DISCLOSURE.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
This message is intended only for the personal and confidential use of the designated
recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is
strictly prohibited. This communication is for information purposes only and should not
be regarded as an offer to sell or as a solicitation of an offer to buy any financial
product, an official confirmation of any transaction, or as an official statement of
Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free.
Therefore, we do not represent that this information is complete or accurate and it should
not be relied upon as such. All information is subject to change without notice.
5
IRS CiLcular 230 Disclosure:
Please be advised that any discussion of U.S. tax matters contained within this
communication (including any attachments) is not intended or written to be used and cannot
be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed herein.
PLEASE NOTE: FLORIDA HAS A VERY BROAD PUBLIC RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO
OR FROM CITY OFFICIALS REGARDING CITY BUSINESS ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC
AND MEDIA UPON REQUEST. YOUR E-MAIL COMMUNICATIONS MAY THEREFORE BE SUBJECT TO PUBLIC
DISCLOSURE.
This message is intended only for the personal and confidential use of the designated
recipient(s) named above. If you are not the intended recipient of this message you are
hereby notified that any review, dissemination, distribution or copying of this message is
strictly prohibited. This communication is for information purposes only and should not
be regarded as an offer to sell or as a solicitation of an offer to buy any financial
product, an official confirmation of any transaction, or as an official statement of
Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free.
Therefore, we do not represent that this information is complete or accurate and it should
not be relied upon as such. All information is subject to change without notice.
IRS Circular 230 Disclosure:
Please be advised that any discussion of U.S. tax matters contained within this
communication (including any attachments) is not intended or written to be used and cannot
be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed herein.
6
unny s es eac, on a
305.947.0606
www.sibfl.net
City Commission
Norman S. Edelcup
Mayor
December 13,2007
FAX- U.S. MAIL
Lewis J. Thaler
Vice Mayor
Roslyn Brezin
Commissioner
Gerry Goodman
Commissioner
Robert M. Cornfeld, President
Newport Operating Corporation
3850 Hollywood Boulevard, Suite 400
Hollywood, Florida 33021
George "Bud" Scholl
Commissioner
Re:
Addendum to Letter of Agreement for Replacement of Sunny Isles
Beach
Fishing Pier.
A. John Szerlag
City Manager
Hans Ottinot
City Attorney
Jane A. Hines
City Clerk
Dear Dr. Cornfeld:
As we further discussed, you will remit to the City of Sunny Isles Beach $500,000
which will function as a deposit for the removal, design, and construction of the
Sunny Isles Beach/Newport Fishing Pier. In addition, the City will also allocate
$500,000 as a deposit for the above referenced pier elements. This fund which
will total $1 million will be held in a City Capital Improvements Project Account
entitled "Sunny Isles Beach/Newport Fishing Pier" and be drawn upon on an as
needed basis by the City of Sunny Isles Beach. The City will control this
budgetary account.
Additionally, you will establish a non transferable" pledge" account with Lehman
Brothers for the Fishing Pier Project. This account will carry a beginning balance
of $1.5 million with the City of Sunny Isles Beach being the only authorized
signatory/beneficiary on the account. The City will then be authorized to
withdraw on an as needed basis a total amount not to exceed $1.5 million. Any
interest earning on the account will be returned to you, and likewise you'll be
responsible for all commissions and charges on that account. The City will also
allocate $1.5 million to its Capital Improvement Account for the Fishing Pier.
The deposit, trust, and City Capital Account needs to be established no later than
January 10, 2008. And this letter and the initial agreement letter will be finalized
in a contract prepared by the City Manager and City Attorney.
If construction on the Pier does not begin within (3) years from approval of this
agreement, any unused funds that you contributed in the initial deposit, as well as
unused funds in the trust that you established, will be returned to you.
R. Cornfeld - Addendum Ltr.
To:
From:
Date:
Page:
Robert M. CornlCkl
A. John Szerlag
December 13. ~007
~ or~
I look forward to a productive public/private partnership that will result in the best
Fishing Pier in the State of Florida.
cc: Hans Ottinot, City Attorney
I concur with the above comments made by the City Manager.
R. CornfclJ - ,\JJcnJum Ltr.
PROMISSORY NOTE
~'" d 'J t ,2008
FOR VALUE RECEIVED, the undersigned, Dr. Robert M. Comfeld ("Maker"),
promises to pay to the order of the City of Sunny Isles Beach, a folitical subdivision of the State
of Florida ("Payee" or the "City"), at 18070 Collins A venue, 4t Floor, Sunny Isles, Beach, FL
33160 or at such other office as Payee may from time to time designate, the principal sum of One
Million Five Hundred Thousand Dollars ($1,500,000.00) (the "Indebtedness"), to be applied for
the removal, design and replacement of the Sunny Isles BeachlNewport Fishing Pier. This Note
is further secured by the Maker's nontransferable trust account with Lehman Brothers entitled
"JEFFREY CORNFELD TTEE NEWPORT OPERATING CORP 2003 IRREV TRUST DTD
01101/2003 pledged collateral account FBO CITY OF SUNNY ISLES BEACH", ("Pledged
Account"), which listed the Payee as an authorized signatory/beneficiary on the account, and
authorized the Payee to hold a security interest in the pledged account pursuant to a pledge
collateral agreement.
All payments made on this Note shall be made by Maker on an installment payment
basis, based on invoices submitted by Payee to Maker. The Maker agrees that the installment
payments shall be applied to the reduction oflndebtedness. Upon the Maker's satisfaction of the
final Indebtedness, this Note shall be deemed null and void. Maker covenants and agrees that the
Payee may collect the Indebtedness from the Pledged Account if Maker fails to pay the
Inde btedness.
All agreements between Maker and Payee, whether now existing or subsequently arising
and whether written or oral, are expressly limited so that, in no contingency whatsoever, whether
by reason of acceleration of the maturity of this Note or otherwise, shall the amount paid or
agreed to be paid to Payee pursuant to the terms of this Note or otherwise or for the payment or
performance of any covenant or obligation contained in this Note or in any other document
evidencing, securing or pertaining to the indebtedness evidenced by this Note exceed the
maximum amount permissible under applicable law. If, from any circumstance whatsoever,
fulfillment of any provision of this Note or other document, at the time performance of such
provision shall be due, shall involve exceeding the maximum amount permissible by law, then,
ipso facto, the obligation to be fulfilled shall be reduced to the limit validly allowed by law. The
terms and provisions of this paragraph shall control and supersede every other provision of all
agreements between Maker and Payee. The Indebtedness may be reduced by mutual agreement
of the Maker and the Payee.
This Note shall be prepayable, in whole or in part, at any time and from time to time
without premium or penalty at the sole option of the Maker. No invalid provisions of this Note
shall affect or impair any other provision. Maker and each endorser, surety and guarantor
acknowledge receipt of a completed copy of this Note.
Promissory Note - Dr. Robert M. Cornfeld
~
I .
MAKER AND PAYEE, EACH APTER CONSULTATION WITH FLORIDA
COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS NOTE, OR THE
TRANSACTIONS OR OBUGA TIONS UNDER WHICH THIS NOTE WAS DELIVERED,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF ANY PARTY RELATING TO THIS NOTE.
MAKER AND PAYEE EACH ACKNOWLEDGE THAT THE PROVISIONS OF THIS
PARAGRAPH ARE A MATERIAL INDUCEMENT TO PAYEE'S ACCEPTANCE OF THIS
NOTE AND MAKER AGREEING TO TERMS OF THIS NOTE.
No amendment, modification, waiver or discharge of this Note, or any provision of this
Note, shall be valid or effective unless in writing and signed by Payee and Maker.
This Note shall be construed in accordance with the internal laws of the State of Florida,
exclusive of its choice of law principles, and any suit, action or proceeding arising out of or
relating to this Note must be commenced and maintained in a court of competent subject matter
jurisdiction in Miami-Dade County, Florida and Maker consents to such jurisdiction and venue
and waives all objections (including, without limitation, forum non conveniens) thereto.
By:
Promissory Note - Dr. Robert M. Cornfeld
City Commission
Norman S. Edelcup
Mayor
January 31, 2008
Lewis J. Thaler
Vice Mayor
Via Facsimile & US Mail
Roslyn Brezin
Commissioner
Dr. Robert Cornfeld
3850 Hollywood Blvd., #400
Hollywood, FL 33021
Gerry Goodman
Commissioner
George "Bud" Scholl
Commissioner
Re: Promissory Note
A. John Szerlag
City Manager
Hans Ottinol
City Attorney
Jane A. Hines
City Clerk
Dear Dr. Cornfeld:
Pursuant to our recent discussions, please find enclosed a promissory note which is a
component of the Pledge Collateral Agreement. Please note that the Promissory Note
becomes null and void upon full payment of the $1.5 million dollars.
I certainly believe that the Promissory Note has resolved the concerns the City raised about
the Pledge Collateral Agreement.
If the note is acceptable to you, please execute both originals and return one of them to me.
Thank you for your cooperation in this matter.
HO/jb
Enclosures
cc: Doug Haag, Asst. City Manager/Finance
Fernando Amuchastegui, Asst. City Attorney
MEMORANDUM OF LEASE
.-tiy/
This Lease is made this ti day of , 2008, by and between,
FIVE SEAS INVESTORS, INe. a Florida corporation, (herei after referred to as "Lessor") and
CITY OF SUNNY ISLES BEACH, a Florida municipality, (hereinafter referred to as "'Lessee.")
for the lease of the Newport Pier located at 16701 Collins A venue, Sunny Isles Beach, Florida,
33160.
WITNESSETH:
\\THEREAS, the Lessor is the owner of the premises situated In Sunny Isles Beach,
Miami-Dade County, Florida, and more particularly described in Exhibit "A" attached hereto;
and
WHEREAS, the premises includes the Newport Pier located at 16701 Collins Avenue in
the City of Sunny Isles Beach, Florida; and
WHEREAS, the Lessor and Lessee wish to execute this Lease in order to provide the
public with continuous and uninterrupted use of the Newport Pier.
NOW, THEREFORE, in consideration of the above recitations the parties do hereby
agree as follows:
1. The Lessor, in consideration of the sum of Ten Dollars ($10.00) and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does
hereby lease to Lessee, and Lessee hereby takes and leases from Lessor, the Newport Pier
located on the premises, more fully described in the attached Exhibit "A."
2. The initial term of this Lease is for a period of 25 (twenty five) years from the date
this Lease is executed by both parties. This lease shall automatically renew for successive 25
(twenty five) year terms in perpetuity unless the pier is no longer operated by the City of
Sunny Isles Beach.
3. For other terms and conditions, reference is made to the Sovereignty Submerged
Lands Lease entered into on the of , 2008, between
the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida and the
City of Sunny Isles Beach, Florida, the provisions of which are incorporated herein by
reference and ratified by the parties hereto.
4. This lease agreement shall not be assigned without the consent of the City of Sunny
Isles Beach.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Memorandum of
Lease as of the day and year first above written.
S. /4 4~~
~o 1 t Itness
~/l.L ~L4f r~f?JO)
Printed Name of First Witness
LESSOR: Five Seas Investors. Inc.
"I
I
/1/1/ 1//1
By: ! I~ /// -l~
Robert M. Cornfeld
President
/'")
/)
/
/r
/' / '-
1,.., /
{CORPORATE SEAL}
. 9J~-1 L /1 I /?'JHJ/ Jb'--
Printed Name of Second Wit ess
ATTEST
LESSEE: City of Sunny Isles Beach
~~~
Jane Hines, CMC, City Clerk
/'
APPROVED AS TO FORM AND
LEGAL SU~ CIENCY
2
/.
.
, '.
North boundary line of Sunny Isles Ocean Beach Boulevard 76.00
feet North of the Northeast corner of Lot 36, of BELLA VISTA
SUBDIVISION, according to the plat thereof, as recorded in Plat
Book 8, at Page 128, of the Public Records of Dade County,
Florida; thence East along the North line of said Sunny Isles Ocean
Beach Boulevard produced Easterly a distance of 134.04 feet to a
point; thence deflecting to the left at an angle of 80 degrees, 47
minutes and 25 seconds, run Northeasterly 233.06 feet to the Point
of Beginning; thence continuing Northeasterly on the same course
a distance of 201.53 feet; thence deflect to the right at an angle of
80 degrees, 21 minutes and 25 seconds, a distance of 309.00 feet,
more or less to the high water mark of the Atlantic Ocean; thence
meandering the high water mark of the Atlantic Ocean in a
Southerly direction to a point where the high watermark of the
Atlantic Ocean will be intersected by a line drawn parallel to and
230.00 feet due North from the North line of Sunny Isles Ocean
Beach Boulevard produced Easte:-ly; thence in a Westerly direction
along said line parallel to and 230.00 feet due North from the
North line of Sunny Isles Ocean Beach Boulevard, produced
Easterly 272.00 feet, more or less, to the Point of Beginning, save
and except certain portions of the above-described lands previously
deeded by Sunny Isles Club, Inc. to the County of Dade for public
highway purposes which said portions of the above-described land
are still held by the County of Dade and have not been reconveyed
to said Sunny Isles Club, Inc.
PARCEL II: (PARKING LOT)
A portion of the North 1/2 of Section 14, Township 52 South, Range 42
East, Dade County, Florida, commencing at the Southeast corner of
Tract "A", PLAZA OF THE AMERICAS SECTION ONE, according to
the plat thereof, as recorded in Plat Book 106, at Page 66, Public
Records of Dade County, Florida; thence North 020 -51 '-03" East along
the East line of said Tract "A" for 74.48 feet, to the Point of Beginning
of a parcel of land hereinafter described; thence North 860-20'46" East
along a line being 74.00 feet North of and parallel with the Easterly
prolongation of the South line of said Tract "A" for 162.13 feet; thence
North 850-'12'-01" East for 151.53 feet, to a Point of Curvature of a
circular curve to the left, having for its elements a radius of 135.81 feet
and a central angle of 820 -20'-58"; thence Easterly and Northerly along
the arc of said curve for an arc distance of 195.20 feet; thence South
8Y-54'-46" West for 129.95 feet; thence North 020-51'-03" 'East for
65.79 feet: thence South 8Y -54'-46" West for 302.21 feet, to a point on
the East line of said Tract "A"; thence South 020-51 '-03" West along the
East line of said Tract "A" for 186.73 feet to the Point of Beginning.
Said lands lying and being in Dade County, Florida, and containing 1.59
acres, more or less.
5
I
.lLI.lLIL(J(J(
(J::J:::J.l
':l::J<r:ltlLtlLt:lt:l
IH~ ~U~Nr~LV ~~UU~
~A~c.
I::llI t11
-I
Dr. Cornfeld
From:
Sent:
To:
Subject:
Lamar, Mario [mario.lamar@lehman.com]
Wednesday, December 12, 20074:40 PM
Dr, Cornfeld
City of Sunny Isles Beach
Attachments:
Lamar, Marlo. vef
liiI
Lamar, Mario.vcf
(514 B)
Dr. Co:r.n:f.eld,
Per our conversation, Lehman is prepared to establish a "pledge" account between yourself
and the City of Sunny Isles Beach. The idea is that we open an account where Dr." Cornfeld
would deposi t ~ into a segregated money market account. Attached to this accoun'l: would
be a "pledge" .JI /.$ I,,),"'t~. .
agreement between the three parties where 11: would state that the C1ty of Sunny Isles
would be a.ble to withdraw money if Dr. Cornfeld were to default on payments to the City of
Sunny Isles for the const.r.uction of the Newport Pier. When the proj ect is completed and
8.11 0:1: O.r..
Cornfeld's liabilities to the City of Sunny Isles Beach have been satisfied, the City
would send a satisfaction and all the proceeds would be transferred back into Dr.
Cornfeld's account.
I hope this is clear. If not, please let me know_
Regards,
Mario L.
~1a..d"o R. Lamar
Senior Vice President
LEHMAN BROTHERS
399 Park Avenue I
Tel: 21~.526.3843 I
<<Lamar, Mario.vcf>>
6th Floor I New York, NY 10022
Fax: 646.885.9093 I Toll Free 800.392.5000 mlamar@lehman.com
This message 1s intended only for the personal and confidential use of the designated
recipient(s) named above. If you Dre not the intended recipient of this message you are
hereby notified that any review, dissemination, dist~ibl1tion or copying of this message is
strictly prohibited. This communication is for information purposes only and should not
be regarded as an offer to sell or as a solicitatj.on of an offer to buy any financial
product, an official confirmation of any transaction, or as an official statement of
Lehman Brothers. Email transmission cannot be guaranteed to be secure or error-free.
Therefore, we do not represent that this information is complete or aCC1.1:ra.te a.nd it should
not be relied upon as such. All information j,s subject to change without notice.
IRS Circular 230 Disclosure:
Plea.se be advised that any discussj.on of U.S. tax matters contained within this
communication (including any attachments) is not int.ended or written to be used and cannot
be used for the purpose ot (i) avoiding U.S. tax related penalties or (ii) promoting,
marketing or recommending to another party any transaction or matter addressed herein.
1
1. J...' LUI Lt.H..J i
..L t....J.l
~:Jl:J-1l-t " " (...J..JU
P1Hr\.L..LI'i c..1'iUl.I'iC.C.r\..J..I'1U
r-HUL:.. r.JLi t:..t..:J
Odober 23rd,; 2007
El'IIG~NEEIlRNG
.ftm;ltlIIIIt.\._"'""""-~~_"_"_A..'__IlI__
I
Mr. Rick Conner, Engineering and Public Works Director
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FI33160
Re: 'nspebtion of Boat Docks .~nd Fishinq Pier
MEI Project # 2007038
Dear Mr. Conner;
The followin~ is a summary of OUr inspection findings and recommendations at the
Boat Docks and Fishing Pier.
Boat Docks ~
I The tImber caps underneath the boardwalk entrance to the docks are
damaged at the connections to the timber piles and should be replaced.
· The damaged planks due to impact, at the northern most dock, between the
4th and 6th piles from the north, should be replaced.
· The timber pile's bases underneath the covered structure are missing the
connections to the foundation and must be repaired in order to offer adequate
suppo;!'t to the structure.
I The s~awa" along the entrance to the docks is undermined and has settled at
some !areas. The affected areas must be repaired.
· All the hardware throughout the docks exhibits moderated to heavy corrosion
and should be painted with protective materials at a minimum or replaced.
· The ufilities throughout the docks appear to be inoperable and exhibit exposed
wires,(- broken connectors and missing cover lids at some locations. These
utilities should be restored.
· The steel gate at the entrance to the docks is moderated corroded and should
be painted with protective materials or replaced.
I
. The dock's structure main components are in sound condition and only the minor
repairs outlined above should be performed in order to bring the docks to full
operational stahdards.
Fishing Pier.
· Most fimber piles exhibit severe marine borer parasite damage with up to 90%
section loss.
I The ~teel main girders exhibit typically severe corrosion with up to 100%
sectioh loss and large cracked areas. Also some girders have buckled and are
bent beyond repairs.
(
,
2191 NW 97 Av.mue MJ~m'. F'Dr'd" 3!U 72-2.'113 1'~', (305/ 477.757~ Fa:: t:!JOS/ "77.7590
Vlf"''''''.m3I1'n ne ngPncerlmtg.c<o>m
ENG!/'IfEft:RNNG
~'~t,_.____~..,_*__ .._..__._-.....t;.~.._i
f
i
· The steel caps, floor beams, cross bracing and their hardware also exhibit
severe corrosion with areas showing up to 100% section loss.
· The timber stringers, caps and cross bracing exhibit end checks and splits and
are decayed with areas showing up to 30% section loss.
The condition of the fishing pier structure east of the shore line is serious and could
cOllapse at any moment due to the extensive damage of the main superstructure and
substructure components. There are no corrective measures that can be taken to
remedy the ~xtensive damage observed by the inspectors. It is our opinion that the
structure should be removed in its entirety.
,
Sincerely,
Mai'~!~",~I!9~lheerin~,~nc.
i",-o- ,.~~ )
\;t(,~..'''''; ,,"-"$"': ..-.,;,'
/,' . ~~-r"""l ~->'7""'''- y__~_
__,...- .....-.,.. i
Ramon Soria~ 5
President '
f;
II
!
r
~ 191 NW 97 Aven.." Mlft...', r:'orlcflllJ.!I172_Z ~13 Tel. IIJO!:1 477-7575 Fax (aos, 477-7590
vtfVlf'''''.mar'l ne nglnf.mrflK1lg.lCom
INSPECTION REPORT
Structure No.:
N/A
Date: 11-0ct-07
M~RP,BDMf>_~ ROUTINE REPORT
ENGINEE:rllNt~ .. /Z SUBMITTED BY: Marlin Diving Inspections, Inc.
_AA.l \~
CONTENTS OF REPORT
A. Location Map F. Photo Section
* B. Plan and Elevation Photos * G. Fracture Critical Data
* C. Load Rating Analysis Summary H. Recommended Repairs
* D. Inspection Field Preparation * I. Scour Evaluation
E. Element Notes * J. Mechanical and Electrical
* This section is not included in this report
PREPARED FOR: CITY OF SUNNY ISLES BEACH
BY: MARLIN DIVING INSPECTIONS, INC.
REPORT IDENTIFICATION
Structure No.: N/A UW Inspection Date: 10/11/2007
Structure Name: SUNNY ISLE FISHING PIER
Road Name/Number: N/A
Feature Intersected: N/A
Location: Eastern End of Sunny Isles Boulevard.
Type of Inspection: DRoutine UW Dlnterim D [] Special
INSPECTION CONDITIONS
Maximum Depth: 12 ft. Equipment Used: Dive Gear, Dive Flaq,
Water Type: Salt Insoection tools, UIW Liqhts, Diqital
Currents: Strong Camera, Probin~ device.
Visibility: Less than 1 ft. Elements Inspected: Timber oiles, PVC cover concrete columns,
Bottom: Sandy Steel qirders, steel floor beams, timber floo
Water Temp.: 820 strinaers,
Weather: Sunny
Special Crew Hours: 6 hrs x 3 inspectors Hazards: Rio current, sharks, wave action.
Critical Deficiency Notes: None
Personnel 1 Title 1 Number Initials
Porras, Omar - Senior Diver Bridge Inspector (CBI # 368) Lead
Abreu, Jose - Assistant Bridge Inspector (Diver)
Alvarez, Jose - Assistant Bridge Inspector (Diver Tender)
Vazquez, Eduardo - Bridge Inspection Supervisor (CBI # 369)
Page 1 of 14
INSPECTION REPORT
Structure No.:
N/A
Date: 11-0ct-07
E: ELEMENT NOTES
NOTES: PROPERTIES AND DETERIORATION OF THE FISHING PIER MATERIALS AS FOllOW
Jnventory was taken from West to East.
_Underwater pictures are not very clear due to poor visibility.
_South profile, Refer to photo # 1.
TIMBER PILES
_All the timber piles exhibit severe marine borer parasite damaged causing hourglass shape
deterioration, with up to 90% section loss, Refer to photos # 2, 3, 4, 5, 6 & 7.
COLUMNS COVERED WITH PVC
_All the columns exhibit minor cracks along the PVC cover, Refer to photos # 8, 9.
STEEL GIRDERS
_The main girders exhibit severed corrosion with 100% section loss and large cracks. Also some of
the girders have buckled and have bent beyond repair. Refer to photos # 10, 11, 12, 13.
STEEL CAPS
_All the steel caps exhibit severe corrosion with 100% section loss and large cracks. Also some of
the caps have buckled and have bent beyond repair. Refer to photos # 14, 15 & 16.
STEEL FLOOR BEAMS
_All the steel floor beams exhibit severe corrosion with 100% section loss and large cracks. Also some
of the floor beams have buckled. Refer to photo # 17 & 18.
STEEL CROSS BRACING
_All the steel cross bracing exhibit severe corrosion with 100% loss. Also some of the bracings are
missing. Refer to photos # 19 & 20.
STEEL NUTS AND BOLTS HARDWARE
_All the nuts and bolts exhibit severe corrosion with 100% section loss.
TIMBER STRINGERS
_All the stingers exhibit surface checks and are decayed up to 20%.
TIMBER CAPS
_All the timber caps exhibit end checks and are decayed up to 20%.
TIMBER CROSS BRACING
_All the timber cross bracing exhibit end checks with splits and are decayed up to 30% ,
Refer to photo # 21.
Page 2 of 14
INSPECTION REPORT
Structure No.:
N/A
Date: 11-0ct-O?
F: PHOTO SECTION
>. -.
.'. .... .-.~
=
.l
r ..,~ ~~
":;"'[(j
, .
J,;i
.:t..._
Description: Top: South profile, Photo # 1.
Bottom: Timber pile decayed, Photo # 2.
Page 3 of 14
INSPECTION REPORT
Structure No.:
N/A
Date:
11-0ct-07
F: PHOTO SECTION
Description: Top: Timber pile hour glass shape, Photo # 3.
Bottom: Timber pile section loss, Photo # 4.
Page 4 of 14
r
INSPECTION REPORT
Structure No.:
N/A
Date: 11-0ct-07
F: PHOTO SECTION
CI'
'"
c.
l \'
, "~ """.'
, ... ~ : _,..11
~~
~V"
.
t
...
~.~'
."
l
~
':Ii
Description: Top: Timber pile decayed, Photo # 5.
Bottom: Timber pile section loss, Photo # 6.
Page 5 of 14
INSPECTION REPORT
Structure No.:
N/A
Date:
11-0ct-07
F: PHOTO SECTION
I
I
.
101
Description: Top: Underwater timber pile hour glass shape, Photo # 7.
Bottom: PVC cover columns, Photo # 8.
Page 6 of 14
INSPECTION REPORT
Structure No.:
N/A
Date: 11-0ct-07
F: PHOTO SECTION
I'
I
Description: Top: PVC cover column typical minor cracks at top, Photo # 9
Bottom: Steel main girder, ty ical cracks, Photo # 10.
Page 7 of 14
-I
INSPECTION REPORT
Structure No.:
N/A
Date: 11-Qct-07
F: PHOTO SECTION
.
I V. ;
NJ it: .~ ~
'" . ;:Ii
Description: Top: Steel main girders, severe corrosion with 100% section loss, Photo # 11.
Bottom: Steel main irders, buckle with 100% section loss, Photo # 12.
Page 8 of 14
~
TO:
FROM:
DATE:
RE:
------
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3113 Fax
(305) 947-2150 Building Department
(305) 947-5107 Fax
(Oily Commission
Norman S. Edeleup. ,\faj"or
Lewis oj. Thaler. I'ice Mayor
Gerry Goodman. ('o/ll/llisslOner
Roslyn Brezin. CO/llmlssioner
George "Bud" Scholl. ('o/lll/lIssioner
A. .John Szerlag. ('if)" .\tollage/'
!lans Oltinot. ('ify AI/orney
.Jane A. !lines. ('Me. Cify Cle/'k
MEMORANDUM
A. John Szerlag, City Manager
Doug Haag, Asst. City ManagF\~
Hans Ottinot, City Attorney }<\ \J
February 6, 2008
Promissory Note
Please find attached an executed promissory note for Dr. Cornfeld. Please note that Dr. Cornfeld
has requested notice that the City has set aside in a separate account the funds for the repair of
the Pier.
/attachments:
cc: Fernando Amuchastegui, Asst. City Attorney
HO/jb
TO:
FROM:
DATE:
RE:
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-311 3 Fax
(305) 947-2150 Building Department
(305) 947-5107 Fax
City Commission
Norman S. Edelcup, Mayor
Lewis J. Thaler, Vice Mayor
Roslyn Brezin, Commissioner
Gerry Goodman, Commissioner
Danny Iglesias, Commissioner
A. John Szerlag, City Manager
Hans Ottinot, City Attorney
Jane A. Hines, City Clerk
-
MEMORANDUM
The Honorable City com1"""i ~ S
A. John Szerlag, City Ma.mgY ~
December 13,2007
Letter of Agreement with Dr.Cornfeld Relative to his Contribution of Two
Million Dollars Toward the Demolition, Design and Replacement of the Sunny
Isles BeachlNewport Fishing Pier
Removal and replacement of the fishing pier needs to be accomplished in an expedient fashion. This
is because the pier east of the shore-line is structurally deficient. To this end, Mayor Edelcup and I
have been att~mpting to secure funding from other governmental agencies to assist in the design,
removal and replacement of this pier. Unfortunately, we don't expect funding anytime soon. It thus
becomes preferable to find an alternate method of replacing the pier.
Given the above, I've negotiated a letter of agreement with Dr. Robert Cornfeld to forge a
public/private partnership for this endeavor. Elements of the agreement are contained in the attached
letter. Succinctly, Dr. Cornfeld will contribute Two Million Dollars toward the demolition, design,
and replacement of the fishing pier, and then share in net revenues. However, the City will control
the entire pier design; operate the fishing pier; select the firm that occupies the restaurant portion of
the fishing pier; and be the lessee with the State of Florida for the pier.
Approval is recommended.
In a related matter, I'm securing a proposal from Marlin Engineering to develop plans and
specifications for the removal, design, and construction ofthe pier.
As always, please feel free to contact me should you have any questions.
AJS/iw
Attachment
cc Hans Ottinot, City Attorney
Robert Cornfeld, President Newport Operation Corporation
Ramon Soria, President, Marlin Engineering
Agenda Item _\ 0 A
1~-/3~07
Commission - Agreement Dr. Cornfeld - Fishing Pier Memo
Date
Sunny Is es Beac , Fori a
305.947.0606
www.sibfl.net
City Commission
Norman S. Edelcup
Mayor
Lewis J. Thaler
Vice Mayor
December 19, 2007
Roslyn Brezin
Commissioner
Gerry Goodman
Commissioner
George ."Bud" Scholl
Commissioner
Dr. Robert M. Cornfeld, President
Newport Operating Corporation
3850 Hollywood Boulevard, Suite 400
Hollywood, Florida 33021
A. John Szerlag
City Manager
Hans Ottinot
City Attorney
Jane A. Hines
City Clerk
Re:
Approval of Letter of Agreement for Replacement of Sunny Isles
Beach Fishing Pier and Addendum to Letter of Agreement
Dear Dr. Cornfeld:
At its regular meeting of December 13, 2007, the City Commission of the City
of Sunny Isles Beach adopted Resolution No. 2007-1183, which approved the
Letter of Agreement for Replacement of Sunny Isles Beach Fishing Pier and the
accompanying Addendum to the Letter. Enclosed is a copy of the approving
legislation for your record.
Thank you.
Very truly yours,
~~c~
Deputy City Clerk
Attachments
cc: A. John Szerlag, City Manager
Hans Ottinot, City Attorney