HomeMy WebLinkAboutReso 2011-1750
RESOLUTION NO. 2011- J, 50
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING A LETTER OF
INTENT BETWEEN THE CITY OF SUNNY ISLES BEACH AND
THE WEINTRAUB COMPANIES FOR THE PURCHASE OF
18080 COLLINS AVENUE ("ALAMO PROPERTY"), IN THE
AMOUNT OF SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS ($7,500,000.00); 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
facilities/amenities 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 presented 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 Avenue; and
WHEREAS, City staff has negotiated and proposed entering into a Letter of Intent with
The Weintraub Companies to purchase the Alamo property to create a first class executive and
professional office building that will complement the high end residential buildings of the Sunny
Isles Beach skyline that will be architecturally harmonious with its surrounding architecture as
well as environmentally friendly.
WHEREAS, the negotiated terms in the Letter of Intent specifies the responsibilities of
the parties with respect to the purchase of the property in the amount of Seven Million Five
Hundred Thousand Dollars ($7,500,000.00), attached hereto as Exhibit "A".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Letter of Intent. The City Commission hereby approves the Letter of
Intent with The Weintraub Companies to purchase the property located at 18080 Collins A venue
("Alamo Property") in an amount of $7,500,000.00, attached hereto as Exhibit "A".
Section 2. 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 3.
Effective Date. This Resolution shall become effective upon adoption.
R20 11- Weintraub Co Ltr Oflntent Purchase Alamo Prop Execute Letter of Intent
Page I of2
PASSED AND ADOPTED this 21 st day of July 2011.
ATTEST:
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. Jane A. Hines, CMC, City Clerk
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APBROVED AS TO FORM
AND LEG SUFFICIENCY:
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Vote: 3-~
Mayor Edelcup
Vice Mayor Thaler
Commissioner Aelion
Commissioner Gatto
Commissioner Scholl
Moved by:
1:;:'
rman S. Edelcup, Mayor
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Seconded by:
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_(Yes)
_(Yes)
-4L(Yes)
_(No)
_(No)
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(No)
_(No)
R20 11- Weintraub Co Ltr Of Intent Purchase Alamo Prop Execute Letter of Intent
Page 2 of2
~The
Weintraub
Companies
July 15th, 2011
Mr. Alan J. Cohen
City Manager
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
RE: Letter of Intent to purchase the property located at 18080 Collins Avenue, Sunny Isles
Beach, Florida 33160.
Dear Mr. Cohen:
This letter of intent sets forth the general terms and conditions under which Global Real
Holdings, LLC and Weintraub Investments, LLC ("Buyer"), would be prepared to purchase the
real property located at 18080 Collins Avenue, Sunny Isles, Florida from The City of Sunny Isles
Beach ("Seller") as more particularly described in the legal description to be provided by the
City (the "Property"). Buyer shall form a new entity to take title to the Property. The intent of
the project to be developed on the Property is to create a first class executive and professional
condominium office building that will complement the high end residential buildings of the
Sunny Isles Beach skyline that will be architecturally harmonious with its surrounding
architecture as well as environmentally friendly
Purchase Price:
The purchase price shall be Seven Million Five Hundred Thousand and
00/100 Dollars ($7,500,000.00) for the Property as set forth herein
("Purchase Price") and payable as further described herein.
Deposit:
Within Fifteen (15) business days of the full execution and delivery of
this LOI, Buyer shall place One Hundred Thousand and 00/1 00
($100,000.00) in escrow as an earnest money deposit. Upon full
execution by both parties of the Purchase Agreement, Buyer will deliver
additional funds to bring the earnest money deposit to Two Hundred
Thousand and 00/1 00 Dollars ($200,000.00) (the "Deposit") to be held in
escrow by the firm of Harold Rifas, P.A. via Chicago Title ("Escrow
Agent"). Said deposit shall become nomefundable after Site Plan
Approval mentioned below, provided no appeal of the City's approval
has been filed.
20900 NE 30th Avenue, Suite 318, Aventura, FL 33180 Tel. 305-557-9398 Fax 305-466-0135
Payments and Closing: The sum of Three Million and 00/1 00 Dollars ($3,000,000.00) will be
paid as follows: Including the earnest money deposit of Two Hundred
Thousand, an additional Eight Hundred Thousand will paid to bring the
total to One Million and 00/1 00 Dollars ($1,000,000) and shall be paid
as a non-refundable payment within Thirty (30) days after the Site Plan
Approval mentioned below has been granted, provided no appeal of the
City's approval has been filed. Closing shall occur Thirty (30) days
after receipt of the building permits or no later than Twelve (12) months
after Site Plan Approval at which point an additional non refundable
payment of Five Hundred Thousand and 00/100 Dollars ($500,000) shall
be made. The remaining One Million Five Hundred Thousand and
00/100 Dollars ($1,500,000) shall be paid within 30 days of the receipt
of the Certificate of Use and Occupancy (or Temporary Certificate of
Occupancy) or Thirty Six (36) months from the date of Site Plan
Approval, whichever occurs first.
The remaining Four Million Five Hundred Thousand and 00/1 00 Dollars
($4,500,000.00) shall be paid annually over a Twenty Five (25) year
period with payments of principal and interest at the annual rate of Five
and One Half Percent (5.5%) beginning two years after obtaining the
Certificate of Occupancy (or Temporary Certificate of Occupancy), or
Sixty (60) Months from receipt of Site Plan Approval, whichever occurs
first. The City of Sunny Isles Beach shall hold a promissory note and a
first mortgage encumbering the property securing the note. Anytime
after Five (5) years from the date of closing, the Mortgagor shall have
the option to payoff the balance then due on the note.
Purchase Agreement: A purchase agreement for the purchase of the property will be negotiated
between the Buyer and Seller using the Seller's contract as a base, and
based upon the terms and conditions set forth herein. The Purchase
Agreement shall contain customary representations and warranties from
Seller and Buyer as to their respective authority to enter into the
Purchase Agreement, and such other terms and conditions as are
customary in real estate purchase agreements in Miami-Dade County,
Florida. The purchase agreement is subject to the approval of the City
Commission. The Buyer will present a preliminary schematic of the site
plan at the public hearing for the approval of the Purchase Agreement.
Site Plan Approval: It is Buyer's intent to submit for Site Plan Approval within 90 days but
no later than 120 days of the execution of the Purchase Agreement. The
deposit shall become non-refundable thirty (30) days after Buyer has
obtained site plan approval for the development and construction of an
office-retail building containing approximately One Hundred and
mThO
Weintraub
Companies
Twenty Thousand (120,000) square feet of sellable Class A office space
(the "Project"), provided no appeal of the City's approval has been filed.
Development Fees: The City of Sunny Isles Beach agrees to waive any permit fees and
costs involved in the development of the Project, and to a reduction in
the F.A.R. bonus fees, as long as the City is not obligated to in turn pay
to any other governmental agencies.
Alamo Lease: The closing of the Purchase Agreement shall be contingent upon the
Seller terminating the existing lease between Seller and Alamo Rent a
car, at the sole expense of Seller.
Closing/Closing Costs: Closing shall take place once the project has obtained its Certificate of
Occupancy, or Thirty Six (36) months from Site Plan Approval,
whichever occurs first. Seller will bear its specific costs associated
with the transaction including its own legal costs. Seller shall pay for
the documentary stamps on the deed of conveyance, surtax, title
evidence, costs of recording corrective instruments and Seller's
attorneys' fee and costs. Real estate taxes and operating costs shall be
prorated through the date of closing. Buyer will bear its due diligence
costs, title premium, costs of recording of the deed and its own legal
fees and costs. All other related closing costs shall be borne by the
respective parties in a manner customary to local transfers.
Broker Commission: Purchaser represents that it is not represented or has dealt with any real
estate brokers, salesman or fmder for this transaction. Seller represents
that there are no other real estate brokers, salesman or finder for this
transaction. By executing below, the parties agree that no Broker has
been involved in this transaction, and that no commissions are due or
payable.
The purpose of this Letter is to set forth the present mutual intent of Buyer and Seller to
negotiate and attempt to enter into a Purchase Agreement. Neither Buyer nor Seller shall be
legally bound to purchase or sell the Property unless and until a Purchase Agreement containing
terms, conditions, and provisions satisfactory to both Buyer and Seller has been executed and
delivered by both parties. The terms of a fully-executed and delivered Purchase Agreement shall
fully supersede the terms of this Letter. During the preparation and negotiation of the Purchase
Agreement, the Parties agree to act in good faith in the negotiation of said Purchase Agreement.
Seller agrees not to deal with any other third parties concerning the sale of the Property, or
continue to market the Property for sale or enter into any agreements for sale of the Property
after the full execution of this letter. Notwithstanding that either or both parties may expend
substantial efforts in anticipation of entering into a Purchase Agreement (including the efforts
and sums in anticipation of entering into a Purchase Agreement), the parties acknowledge that in
no event will this Letter be construed as an enforceable contract to sell or purchase the Property
~The
Weintraub
Companies
and that each party accepts the risk that no such contract will be executed. This letter of intent is
subject to the approval of the City Commission, if the City Commission rejects the project at the
conceptual stage prior to Site Plan Approval, this LOI shall be null and void and all deposits and
payments will be refunded.
If the terms and conditions set forth. above are satisfactory, please execute and date this
letter in the space provided below and return it to Buyer on or before 5 p.m. on July 27tlt, 2011.
If you have any questions, please do not hesitate to call. We look forward to working
with you on this matter.
Sincerely,
Global Real Holdings, LLC
Weintraub Investments, LLC
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Agreed and Accepted by Seller:
City of Sunny Isles Beach
By:
Title:
Date:
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City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3113 Fax
;MEMORANDUM
TO:
The Honorable Mayor and City Commission
FROM:
Alan J. Cohen, City Manager
DATE:
7/21/2011
RE:
Approving a Letter of Intent between the City of Sunny Isles Beach and
The Weintraub Companies for the purchase of 18080 Collins Avenue
("Alamo Property")
RECOMMENDATION:
It is recommended that The Commission approve the resolution.
REASONS:
The offer is higher than current market value, covers all of the City's investment (past
and future) in the property, the buyer has the required experience to successfully develop
the project and the proposed development is consistent with the City's development
plans.
ADDITIONAL INFORMATION:
The City and The Weintraub Companies (Weintraub) have finalized a proposed Letter of
Intent (LOI) to facilitate the purchase of 18080 Collins Avenue, aka The Alamo Property,
adjacent to the City Hall property. Weintraub plans to construct and operate an office
building on the site, most likely as an office condominium. The structure will have an
attached parking garage.
Weintraub has developed a similar office condominium project in Aventura, located at
20900 NE 30th Avenue. All of the units in that building have been sold.
In the proposed LOI, the City and Weintraub have agreed to negotiate a purchase
agreement for the property. Under the proposed terms of the LOI, the City will sell the
building for $7,500,000. A series of payments totaling $3,000,000 will be made to the
City in the first two and a half years, followed by annual payments on a 25-year note for
$4,500,000. The gross value of the payments made to the City will be $11,038,808
($7,500,00 in principal and $3,538,808 in interest). The LOI does allow for an early
http://sibagenda.sibfl.net/agenda/Preview.aspx?I temID=549&MeetingID=0&MeetingDate... 7/1512011
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payoff of the 25-year note after year 5. Were the buyer to exercise this option in year 5,
the gross value of the payments made to the City would be $8,678,221 ($7,500,00 in
principal and $1,178,221 in interest).
A timeline for the proposed project has been developed. If we are able to successfully
negotiate a purchase agreement and The Commission approves it at its September
meeting, building construction is scheduled to be substantially completed by the end of
2013 and the buyers anticipate receiving their Certificate of Occupancy by February of
2014.
http://sibagenda.sibfl.net/agenda/Preview.aspx?ItemID=549&MeetingID=O&MeetingDate... 7/15/2011