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HomeMy WebLinkAboutReso 2008-1319 RESOLUTION NO. 2008-13...B A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, RATIFYING A NON-BINDING LETTER OF INTENT BETWEEN THE CITY OF SUNNY ISLES BEACH AND DEZER DEVELOPMENT COMPANY, TO FORM A PUBLIC/PRIV A TE PARTNERSHIP TO CONSTRUCT A MIXED USE PRO.JECT CONSISTING OF A CONFERENCE CENTER, MEDICAL OFFICES AND A CAR MUSEUM; AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Commission is desirous of continuing to develop public facilitieslamenities to further the development of the City as a growing residential population and top tourist destination; and WHEREAS. in February 2008. the City acquired the Alamo site located at 18080 Collins A venue (the "Alamo site") for anticipated future growth of municipal programs; and WHEREAS, the City was recently presentcd with a unique opportunity to develop the Alamo site to continue to provide essential municipal services and to stimulate the redevelopment of commercial properties on the west side of Collins A venue; and WHEREAS, City staff has negotiated and proposed entering into a non-binding Letter of Intent with Dezer Development Company to form a publiclprivate partnership to develop a mixed-use development ("Project") at the Alamo site, consisting of public amenities to include a conference center, medical offices and car museum. WHEREAS, the negotiated terms in the Letter of Intent specifies the responsibilities of the parties with respect to the Project. including the City's responsibility to provide land for the Project and Dezer Development Company's responsibility to provide financing. design. and construction for the Project. NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Ratification of Letter of Intent. The City Commission hereby ratifies the non- binding Letter of Intent with Dezer Development Company to f()rm a public/private partnership to develop a mixed-use development on City owned property. which is located at 18080 Collins A venue, attached hereto as Exhibit "A". Section 2. Authorization of City Managcr and City Attorney. The City Manager and City Attorney are hereby authorized to do all things necessary to effectuate this Resolution. Authorizing Thc CC To Exccutc Non-Binding Lcttcr Of Intcnt Executc Lcttcr of Intcnt Pagc I 01'2 Section 3. Effective Date. This Resolution shall become effective upon adoption. PASSED AND ADOPTED this 18th day of September 2008. ~ ATTEST: ~AL Jane A. Hines, City Clerk APPROVED AS TO FORM AN E SUFFICIENCY: Moved by: \It ~ ff\~()Y IHl41..cue... Seconded by: C1J~ ~rcE.2(N Vote: S-o Mayor Edelcup Vice Mayor Thaler Commissioner Goodman Commissioner Srezin Commissioner Scholl ~(Y es) (Yes) L,./(Yes) V (Yes) V(Yes) (No) (No) (No) _(No) (No) Authorizing The CC To Execute Non-l3imJing letter or Intent heclIte Lettcr or Intent Page 2 0 I' 2 Sunny Isles Beach, Florida 33160 305.947.0606 www.sibfl.net City Commission July 30, 2008 Norman S. Edelcup Mayor Lewis J. Thaler Vice Mayor Roslyn Brezin Commissioner Gerry Goodman Commissioner George "Bud" Scholl Commissioner A. John Szerlag City Manager Hans Ottinot City Attorney Jane A. Hines City Clerk Michael Dezer Gil Dezer Dezer Development LLC 1800 I Coli ins A ven ue, Apt. 2402 Sunny Isles Beach FL 33160 Re: Non-Binding Letter of Intent for Proposed Joint Development A2reement for Construction of a Conference Center. Medical Offices and Car Museum Dear Gentlemen: The City of Sunny Isles Beach ("City") and Dezer Development LLC and or its assigns ("Dezer Development") wish to form a public/private partnership to develop a mixed-use development ("Project") on City owned property, which is located at 18080 Collins A venue, as more specifically described in Exhibit "A" ("Property''). This non-binding Letter of Intent serves to establish a preliminary basis for negotiating a Joint Development Agreement that will contain additional terms sllch as conditions and provisions not yet negotiated or agreed upon by the parties for the development of the Project. I. Purpose. This Letter of intent reflects the commitment by the City and Dezer Development to work together to develop public facilitieslamenities to further the development of the City as a destination location in the State of Florida. The goal of this public/private partnership is to create public facilities to serve a growing residential and tourist population. 2. Proiect. The Project is a mixed use development wh ich primari Iy consists of a con ference center, medical offices/facilities and a car museum. The conference center shall accommodate approximately 500 people for a sit-down meal. The medical offices/facilities shall occupy approximately 35,000 square feet or the development. The museum shall occupy approximately 39,000 square feet of the development. The Project shall also consist ofa restaurant with approximately 10,000 square feet. The Project will be constructed in accordance with the proposed layout titled "Trump Grande proposed Areas", attached hereto as Exhibit "B". 3. Joint Development A2reement. No later than November I, 2008, the City and Dezer Development shall enter into a Joint Development Agreement ("Agreement") to facilitate the construction of the Project. The Agreement shall specify the responsibilities of the parties with respect to the Project. More specifically, the City shall be responsible for providing the land for the Project. The City shall also be responsible for providing the land for off-site parking facilities, ir needed for the Project. Dezer Development shall be responsible for financing, designing and constructing the Project and building of any off- site parking facility. Dezer Development will contribute or finance significant funds (currently estimated between $22-35 million dollars) to construct the Project. Prior to the Exhibit "A" 4. Ground Lease A2reement. The Ground Lease Agreement shall commence upon issuance of a Certificate of Occupancy for the Project and shall terminate thirty (30) years from execution and shall automatically renew for t\\-o (2) additional thirty (30) year renewal periods, followed by a third automatic nine (9) year renewal period. The Ground Lease shall be executed simultaneously with the Joint Development Agreement. Dezer Development shall pay an initial annual ground rent, which shall be $350,000.00. The ground rent shall be subject to annual increases in accordance with the Consumer Price Index as published by the United States Department of Labor. Such increases shall not exceed three percent (3%) per year. I fthe Certificate of Occupancy is not issued within four (4) years of the issuance of a building permit, the Ground Lease shall commence on the beginning of the fifth (5th) year following the issuance of a building permit. 5. Development Approvals. Prior to submission of the Project for development approval by the City, Dezer Development shall submit the final plans, specifications, and working drawings for the design and construction of the Project for review and approval by the City staff. The City shall fully cooperate with Dezer Development and sign all documents, if any. for the purpose of securing development approvals from governmental agencies which includes the City. The City will provide staffsupport and other assistance upon request to Dezer Development in connection with the execution of the Project. 6. Parkin2 Gara2e. In the event that the Project is in need of parking spaces to satisfy the parking requirement under the City Code, the City shall use its best efforts to acquire land for a parking garage with at least 250 spaces. The parking garage shall be located within 250 feet of the Project. If the City is not able to find a willing Seller to acquire land for a parking garage, the City will look at the feasibility of building a parking garage at the government center. Dezer Development shall be responsible for constructing the parking garage. The City shall be responsible for designing and financing the parking garage. The City and Dezcr Development shall enter into a Parking Lease which terms and conditions will be negotiated. 7. Waiver of Development Fees. The City will waive Dezer Development's obligation to pay project-related fees and charges that are due and payable to the City. 8. Public Use. For so long as the Ground Lease is in effect, Dezer Development shall maintain the public uses within the Project. These public uses include but are not limited to the conference center, medical offices/facilities, and the car museum. Dezer Development shall provide the City with the use of the conference center for at least nine (9) days per year at no charge. However. the City will be responsible for the actual costs of food and beverage and labor including, but not limited to, set up, service, break down and cleanup. 9. Assi2nment. This Letter of Intent is not assignable unless 'vvith the consent ofeither party which consent will not be unreasonably withheld. Notwithstanding the foregoing, it is understood and agreed to by the parties that the leasehold interest of Dezer Development 10.Ri2ht of First Offer. Dezer Development shall be granted a right of first offer to purchase the Property in the amount of Seven Million Dollars ($7,000.000) in the event the City elects to sell the Property during the term of the Ground Lease. II.Walkway Over Collins Avenue. If permitted by Regulating Government Agencies, the City will work with Dezer Development to obtain air rights over Collins A venue to allow for the construction and maintenance of a walkway located over Collins A venue to connect the Trump International Hotel to the Project. If feasible, the walkway will provide the public with a means to cross Collins A venue without entering the hotel. Dezer Development is responsible for the designing, financing, and construction of the walkway. 12. Approval of the Citv Commission. This Letter of Intent and any contract between the parties are subject to the approval of the City Commission. This Letter of Intent is not intended to be a contract between the patties with respect to the Project. It is intended to facilitate discussion of the Project and is only an expression of the basis on which the parties would enter into a contract regarding the Project and the rights and obligations of the parties. The City requests Dezer Development's acknowledgement of this Letter ofIntent below in order that the City may proceed with Dezer Development to draft a Joint Development Agreement. Sincerely. Dezer Developmen hereby acknowledges receipt of the foregoing proposed general terms and conditions of a Joint Development Agreement between the parties pertaining to the Project and agrees that the next step is the drafting of the Joint Development Agreement agreeably between the parties providing for the development of the Project. <R DEVELOPMENT COMPANY: cc: The Honorable City Commission Hans Ottinot, City Attorney Warren Jay Stamm, Esq. e e EXHIBIT "A" LEGAL DESCRIPTION ALL OF PARCEL L 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 REPLA T OF TRACT "A", SUNNY ISLES SHORE SECTION "A" ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK 64. AT PAGE 74. OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY. FLORIDA. e e .I.f~l!~J~.ql5..~tW1=J)f!QP"Q~~.A~~~~ QB.QVND LE~~ PAHKING- '/..7 sp~ces RESTAURANT. LOBBYI GALLERY 2NQ.1J~.,{~l BALLROOM. BANQUET KITCHEN .. PAr~KING- 27 spaces (level 2.5) . ~DR LEVEL CAR MUSEUM... . 14,900 SQ. FT. PARKING- 54 spaces .. ..7,950 SQ. FT. x 2=15,900 SQ. FT. 4T'i LEY~l-. CAR MUSEUM .. .... ................m. 17,200 SQ. FT. OUTDOOR MUSEUM SPACE 7,400 SO. FT. 8,540 SQ. Fl. . .10,830 SQ. FT. ..... 2,370 SQ. FT. 17,000 SO. n. 7,800 SQ. FT. 8,040 SQ. FT. .2TH, 6TH & 7!!:U-_~y'~!,,- OFFICE (3 FLOORS).. ...7,520 SO. FT. X 3 :-: 22,560 SO. FT. CORRIDORS, REST- ROOMS & ELEVATOR LOBBY (3 FLOORS) .. . j ,980 SQ. FT. X 3 = 5,940 SQ. FT. PARKING- 81 spaces ..7,950 SQ. FT. X 3 = 23,850 SQ. FT. 8T.!::U-_EVEL OFFICE ....... 11,120 SQ. FT. OUTDOOR OFFICE SPACE.... 4.100 SQ. FT. CORRIDORS, RESTROOMS & ELEVATOR LOBBY... 2,050 SQ. FT. ~TH m~-.:! 9TH LEYE~. OFFICE (10 FLRS)... .11,200 SQ. FT. X 10:; 112,000 SQ. FT. CORRIDORS, REST- ROOMS & ELEVATOR LOBBY (10 FLRS) 2,050 SQ. FT. X 10::: 20,500 SQ. FT. TOTAL AREAS.. .... . TOTAL PARKING (VAl.ET). . .312,100 SQ. FT. ..189 SPACES Ar~~~?BE6J5.Q9yvN.l~~.~J:!_SE OFFICE (13 FLOORS TOTAL). OUTDOOR OFFICE SPACE . CAR MUSEUM.. ... ...... OUTDOOR MUSEUM SPACE. PARKING (7 LEVELS TOTAL) . RESTAURANT.. . BALl.ROOM . BANQUET KITCHEN. . . 145,680 SQ. FT. .. . 4, '100 SQ FT. ..32,100 SQ. FT. 7,400 SQ. FT. 56,330 SQ. FT. ...... 10,830 SQ. FT. 17,000 SQ. FT. 7,800 SQ. FT. 03-04-2008 --.------~.-_.~__..__..__._______._.___~?!2.':~Pt~~~c:.~aI~_ A1 -~-=-.~~---,........,~:..a--....."'-.'i:.~..I':""'''',.,...t''>_..C.l~~~':.r,..'\I''1T.1r..:.:J..~~'2::z...'lIr'''.~...._~.t;~~t,;~..)...:.c.~_.... EXHIBIT "B" 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 Ci(I' Commission Norman S. Edeleup, Ma)'or Lewis .1. Thaler, "ice Ma)'or Gerry Goodman. CommissIOner I{oslyn Brezin. CommissIOner Gl'orge "Bnd" Scholl, CommissIOner A. .John Szerlag. Cif)' Manager II a ns Olti not, CII)' A lIorne)' .Jane A. lIines. Cl\lc, Of)' lIerk MEMORANDUM TO: The Honorable City Commission FROM: A. John Szerlag, City Mana DATE: September 18, 2008 RE: Ratification of Letter of Intent Between City of Sunny Isles Beach and Dezer Development Company RECOMMENDA TION It is recommended that the City Commission adopt the attached Resolution ratifying a letter of intent between the City of Sunny Isles Beach and Dezer Development Company. REASONS On May 15, 2003, the City Commission adopted Resolution No. 2003-553, instructing the City Manager and the City Attorney to acquire by purchase or condemnation the property located next door to the Government Center for a future public works facility. As you know, the property next door is commonly known as the Alamo site. Unable to purchase the Alamo site from the owner on a voluntary basis, the City instituted an eminent domain action in 2003 to acquire the site. After several years of contentious litigation, the City was able to finalize the acquisition of the Alamo site in February 2008. Currently, the Alamo site is being utilized by the City and an Alamo Rental Car Agency. The City is using half of the property to park employee vehicles and surplus vehicles, whereas Alamo Rental Car Agency is using the other hal f of the property for business purposes. At the time of moving to condemn the Alamo site. the City Commission expressed a desire to acquire the property to complement the construction of the City Hall and to provide for anticipated future growth of municipal programs. More specifically, the previous administration had expressed a desire to use the Alamo site as the site for a future public works facility. Using the Alamo site as a Public Works facility is no longer an option because staff has found a permanent home for the Public Works Department at the Heritage Park on 192nd Street. As you know, the Heritage Park property was purchased in August 2006, and the Public Works Facility is incorporated in the design of the park. Realizing that the needs of the City have changed since the City initiated condemnation proceedings to acquire the Alamo site and after internal discussions individually with staff and members of the City Agenda Item \-.t:2M Date 9 - \ 2? - () 't I Commission, I have come to the conclusion that the City has a genuine opportunity to develop the Alamo site to continue to provide essential services to residents and visitors. As part of a plan to continue to provide essential services to residents and VIsItors, staff recently negotiated a Letter of Intent with Dezer Development Company ("Dezer Development") to form a publiclprivate partnership to construct a mixed used project on the Alamo site. The development project shall consist of the following public amenities if approved by the appropriate government agencIes: (1) A 17,000 square foot Conference Center to accommodate a minimum of 500 people for a sit-down meal; and (2) A 35,000 square foot Medical Facility/Offices to be operated by Mount Sinai Medical Center; and (3) A 39,000 square foot Car Museum; and (4) A 10,000 square foot Restaurant to complement the Museum; and (5) A skywalk over Collins Avenue to permit public access to Trump International and the Beach; and (6) At least 100,000 square feet of commercial office space. A copy of the Letter of Intent is attached as Exhibit "A" to the resolutions. As indicated by the Letter of Intent, Dezer Development will be the primary developer of the project. Mount Sinai Medical Center has tentatively agreed to work with the City and Dezer Development to operate the medical offices within the project. A letter of support from Mount Sinai is attached as Exhibit "A". Based on the Letter of Intent, Dezer Development will contribute or finance significant funds (currently estimated between $22-35 Million Dollars) to construct the project. Additionally, Dezer Development has agreed to pay the City annual lease payments of $350,000 upon completion of the project. The lease payments will be subject to annual increases in accordance with the Consumer Price Index. Simply put, the City will have a consistent source of revenue from this project since the lease payments are required to be made for ninety-nine (99) years. A consistent source of revenue is vital for the City's fiscal welfare in light of expected revenue shortfalls from decreased ad valorem tax revenue. Further, the City will have the right to use the conference center nine (9) days per year at no charge for the benefit of the public. The City and Dezer Development have not finalized the time of commencement or completion for this publiclprivate partnership. However, the parties anticipate the project will be completed within the next six (6) years. The pm1ies will formalize this partnership in the near future by entering into a joint development agreement. To this end, it is important to note that this public/private partnership is to create public facilities to serve a growing residential and tourist population. As you know, the City of Sunny Isles Beach was recognized as one of the top tourist destinations in North America. Additionally, I certainly believe that the proposed mixed-used project on the Alamo site should spur the redevelopment of commercial properties on the west side of Collins A venue to provide additional amenities to our residents and tourists, and as such. will be a public benefit. /attachmcnt Page 1 of 1 Priscilla Walker From: Sent: To: Cc: Priscilla Walker Wednesday, September 24, 2008 1 :38 PM John Szerlag; Hans Ottinot Ivonne Weiner; Jasmine Barnes Subject: Ratification of Letter of Intent with Dezer Development Attachments: Reso 2008-1319.PDF At its regular meeting of September 18,2008, the City Commission approved Resolution 2008-1319 ratifying a non-binging Letter of Intent with Dezer Development. Attached is a copy of the approving legislation. Thank you. Prisci[{a Wa[Rgr. CMC Deputy City Clerk/Office Manager City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 (305) 792-1703 Phone (305) 949-3113 Fax www.sibfl.net 10/1/2008