Loading...
HomeMy WebLinkAboutReso 2013-2030 RESOLUTION NO. 2013 2.030 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA; PROVIDING FOR AN EXTENSION OF PAYMENTS FOR DEVELOPMENT RIGHTS PURCHASED UNDER THE BONUS DENSITY PROGRAM; APPROVING A PROMISSORY NOTE IN SUBSTANTIALLY THE SAME FORM BETWEEN THE CITY OF SUNNY ISLES BEACH AND 18555 DEVELOPERS, LLC. COMMONLY CALLED THE "PORSCHE" PROJECT; PROVIDING THE CITY MANAGER AND CITY ATTORNEY WITH THE AUTHORITY TO DO ALL THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, by Zoning Resolution No. 12-Z-129, adopted on May 10. 2012, and Resolution 11-Z-123. adopted on November 17, 2011. the City Commission approved a site plan filed by 18555 Developers. LLC. for a project commonly called the "Porsche" Project. WHEREAS, the zoning approval for the 'Porsche" project requires the developer to pay the City the sum of 53.818,880.00 for development rights purchased under the bonus density program prior to an issuance of a building permit: and WHEREAS, the City Commission wishes to grant the developer of the project an extension of time to make the required payments. NOW THEREFORE, BE IT RESOLVED BY THE CITY CONL IISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Extension of Payment. The City Commission hereby approves the extension request submitted by the developer of the `Porsche" Project attached hereto as Exhibit "A". Section 2. Approval of Promissory Note. The City Commission hereby approves the terms and conditions reflected in the attached Promissory Note in substantially the same form attached hereto as Exhibit "B". Section 3. Authorization of the City Attorney and City Manager. The City Attorney and the City Manager are hereby authorized to do all things to effectuate the intent of this Resolution. Section 4. Effective Date. This Resolution shall become effective upon adoption. Approval of Promissory Note 18555 Developers. LLC PASSED AND ADOPTED this 21 day of February 2013. �; Vl 7-MiC srman S. Edelcup, 4ayor ATTE T: - SA, . Jane A. Hines, CMC, City Clerk APPROV i D TO FORM AND E f,• FFICIENCY: AlaiFr o tr ot. City Attorney Moved by: y lCA- 61\13-Tv N4_L10,0 Seconded by: Cc.4 Di L Vote: rj=70 Mayor Edelcup (Yes) (No) Vice Mayor Aelion L_(Yes) (No) Commissioner Gatto ✓ (Yes) (No) Commissioner Levin ./(Yes) (No) Commissioner Scholl V (Yes) (No) Approval of Promissory Note 18555 Developers. LLC 18555 DEVELOPERS LLC 18001 COLLINS AVENUE, 31ST FLOOR SUNNY ISLES BEACH, FL 33160 305-932-1000 February 14, 2013 Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 Re: Porsche Design Tower Miami Project- 18555 Collins Avenue("Project") Dear Mr. Ottinot: The undersigned on behalf of 18555 Developers LLC as Developer of the above referenced project is hereby requesting an extension on the payment of Project Bonuses Fees due on the Project in the amount of$3,818,880. These extensions are requested to become effective upon the issuance to the Project of the Foundation only Permit (expected date of issuance of March, 2013) through the earlier to occur of the issuance by the City of the Master Building Permit or December 1, 2013 at which time the Bonus Fee Payments shall become due and owing. We confirm that the Developer will enter into a Promissory Note in favor of the City for the applicable amounts corresponding to the Project Bonuses and that the City has assessed an interest rate of Five (5%) per annum (pro-rated) on those outstanding Fees and Payments from the issuance of the Foundation only Permit through the earlier of issuance of the Master Building Permit or December 1, 2013. This of course is subject to the approval of the City Commission. This will also reconfirm that the Project will not be availing itself of 15,000 TDR's previously allocated to the Project. Please confirm the balance on deposit with the City in any primary or sub account in favor of the Developer and Project. Please confirm and advise upon approval by the City and we can formalize. Thank you for your consideration in this matter. Cori #111 y, "' arren tamm For the Co pany WJS:jw Cc: Gil Dezer Andrew Richards Christopher Russo, City Manager Minal Shah, Finance Director E\HIBI'F "A" PROMISSORY NOTE February,,,,, 20 13 FOR VALUE RECEIVED, the undersigned. 18555 Developers. LLC. a Florida limited liability corporation ("Maker" or "18555 Developers"), promises to pay to the order of City of Sunny Isles Beach ("Payee" or the "City"), a Florida municipal corporation located at 18070 Collins Avenue. Sunny Isles. Beach. FL 33160 or at such other office as Payee may from time to time designate. the principal sum of Three Million Eight Hundred Eighteen Thousand Eight Hundred Eighty Dollars ($3.818.880.00) (the "Indebtedness"). together with interest from the date of execution of this Promissory Note. at the rate of five percent (5%) per annum. Principal and interest payment shall be due and payable at the time of issuance of a Master Building Permit or on December 1. 2013, whichever event occurs first, at which time the Bonus Fees shall become due and owing. Interest payment shall be calculated from the date of issuance of a Foundation Permit for the Porsche Design Tower Miami ("Project"). All payments made on this Note shall be applied by Payee to the reduction of the indebtness. The Indebtedness and accrued and unpaid interest thereon shall be due and payable on the Maturity Date. If this Note is not paid promptly on the Maturity Date in accordance with its terms and is placed in the hands of an attorney for collection. Maker agrees to pay all reasonable attorney's fees and the costs and expenses of collection of this Note incurred by Payee. The Payee has the absolute right to revoke the building permit issued to the Project pursuant to Resolution No. 1 I- Z-123. adopted November 17. 2011.if this Note is not paid promptly. Maker covenants and agrees that time is of the essence for payments due under this Note. All agreements between Maker and Payee. whether now existing or subsequently arising and whether written or oral, are expressly limited so that, in no contingency whatsoever. whether by reason of acceleration of the maturity of this Note or otherwise, shall the amount paid or agreed to be paid to Payee pursuant to the terms of this Note or otherwise or for the payment or performance of any covenant or obligation contained in this Note or in any other document evidencing, securing or pertaining to the indebtedness evidenced by this Note exceed the maximum amount permissible under applicable law. If. from any circumstance whatsoever, fulfillment of any provision of this Note or other document, at the time performance of such provision shall be due, shall involve exceeding the maximum amount permissible by law, then, ipso facto. the obligation to be fulfilled shall be reduced to the limit validly allowed by law. If Payee shall ever receive, as interest or otherwise, an amount which would exceed the highest lawful rate of interest. such amount which would be excessive interest shall be applied to the reduction of the principal amount owing under this Note or on account of any other principal indebtedness of Maker to Payee and not to the payment of interest or. if such excessive interest exceeds the unpaid balance of principal of this Note and such other indebtedness. such excess shall be refunded to Maker. The terms and provisions of this paragraph shall control and supersede every other provision of all I agreements between Maker and Payee. EXHIBIT -13" Promissory Note— 18555 Developers.LLC This Note shall be prepayable, in whole or in part. at any time and from time to time without premium or penalty at the sole option of the Maker, with the amount of the prepayment being credited first in respect of accrued but unpaid interest and second in respect of principal. No invalid provisions of this Note shall affect or impair any other provision. Maker and each endorser, surety and guarantor acknowledge receipt of a completed copy of this Note. MAKER AND PAYEE, EACH AFTER CONSULTATION WITH FLORIDA COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF. UNDER, OR IN CONNECTION WITH THIS NOTE, OR THE TRANSACTIONS OR OBLIGATIONS UNDER WHICH THIS NOTE WAS DELIVERED. OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR 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. Maker agrees to pay the City's attorney's fees and costs if the City has to file any legal action to enforce the Note. MAKER: 18555 Developers, LLC By: Gil Dezer, Manager Promissory Note— 18555 Developers. LLC 18555 DEVELOPERS LLC 18001 COLLINS AVENUE, 31ST FLOOR SUNNY ISLES BEACH, FL 33160 305-932-1000 February 14, 2013 Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 Re: Porsche Design Tower Miami Project- 18555 Collins Avenue("Project") Dear Mr. Ottinot: The undersigned on behalf of 18555 Developers LLC as Developer of the above referenced project is hereby requesting an extension on the payment of Project Bonuses Fees due on the Project in the amount of$3,818,880. These extensions are requested to become effective upon the issuance to the Project of the Foundation only Permit (expected date of issuance of March,-1013) through the earlier to occur of the issuance by the City of the Master Building Permit or December 1, 2013 at which time the Bonus Fee Payments shall become due and owing. We confirm that the Developer will enter into a Promissory Note in favor of the City for the applicable amounts corresponding to the Project Bonuses and that the City has assessed an interest rate of Five (5%) per annum (pro-rated) on those outstanding Fees and Payments from the issuance of the Foundation only Permit through the earlier of issuance of the Master Building Permit or December 1, 2013. This of course is subject to the approval of the City Commission. This will also reconfirm that the Project will not be availing itself of 15,000 TDR's previously allocated to the Project. Please confirm the balance on deposit with the City in any primary or sub account in favor of the Developer and Project. Please confirm and advise upon approval by the City and we can formalize. Thank you for your consideration in this matter. // . ane m For the Co pany WJS:jw Cc: Gil Dezer Andrew Richards Christopher Russo, City Manager Minal Shah, Finance Director EXHIBIT "A" PROMISSORY NOTE February_2013 FOR VALUE RECEIVED, the undersigned. 18555 Developers, LLC, a Florida limited liability corporation ("Maker" or "18555 Developers"), promises to pay to the order of City of Sunny Isles Beach ("Payee" or the "City"), a Florida municipal corporation located at 18070 Collins Avenue. Sunny Isles. Beach. FL 33160 or at such other office as Payee may from time to time designate. the principal sum of Three Million Eight Hundred Eighteen Thousand Eight Hundred Eighty Dollars (S3.818.880.00) (the "Indebtedness"), together with interest from the date of execution of this Promissory Note, at the rate of five percent (5%) per annum. Principal and interest payment shall be due and payable at the time of issuance of a Master Building Permit or on December 1. 2013, whichever event occurs first, at which time the Bonus Fees shall become due and owing. Interest payment shall be calculated from the date of issuance of a Foundation Permit for the Porsche Design Tower Miami ("Project"). All payments made on this Note shall be applied by Payee to the reduction of the indebtness. The Indebtedness and accrued and unpaid interest thereon shall be due and payable on the Maturity Date. If this Note is not paid promptly on the Maturity Date in accordance with its terms and is placed in the hands of an attorney for collection. Maker agrees to pay all reasonable attorney's fees and the costs and expenses of collection of this Note incurred by Payee. The Payee has the absolute right to revoke the building permit issued to the Project pursuant to Resolution No. 11- Z-123, adopted November 17, 2011. if this Note is not paid promptly. Maker covenants and agrees that time is of the essence for payments due under this Note. All agreements between Maker and Payee. whether now existing or subsequently arising and whether written or oral, are expressly limited so that, in no contingency whatsoever, whether by reason of acceleration of the maturity of this Note or otherwise, shall the amount paid or agreed to be paid to Payee pursuant to the terms of this Note or otherwise or for the payment or performance of any covenant or obligation contained in this Note or in any other document evidencing, securing or pertaining to the indebtedness evidenced by this Note exceed the maximum amount permissible under applicable law. If. from any circumstance whatsoever, fulfillment of any provision of this Note or other document, at the time performance of such provision shall be due. shall involve exceeding the maximum amount permissible by law, then, ipso facto, the obligation to be fulfilled shall be reduced to the limit validly allowed by law. If Payee shall ever receive, as interest or otherwise, an amount which would exceed the highest lawful rate of interest, such amount which would be excessive interest shall be applied to the reduction of the principal amount owing under this Note or on account of any other principal indebtedness of Maker to Payee and not to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of this Note and such other indebtedness, such excess shall be refunded to Maker. The terms and provisions of this paragraph shall control and supersede every other provision of all I agreements between Maker and Payee. Promissory Note— 18555 Developers. LLC EXHIBIT "B" This Note shall be prepayable. in whole or in part, at any time and from time to time without premium or penalty at the sole option of the Maker, with the amount of the prepayment being credited first in respect of accrued but unpaid interest and second in respect of principal. No invalid provisions of this Note shall affect or impair any other provision. Maker and each endorser, surety and guarantor acknowledge receipt of a completed copy of this Note. MAKER AND PAYEE, EACH AFTER CONSULTATION WITH FLORIDA COUNSEL. KNOWINGLY. VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF. UNDER. OR IN CONNECTION WITH THIS NOTE. OR THE TRANSACTIONS OR OBLIGATIONS UNDER WHICH THIS NOTE WAS DELIVERED, OR ANY COURSE OF CONDUCT. COURSE OF DEALING, STATEMENT (WHETHER ORAL OR WRITTEN) OR 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. Maker agrees to pay the City's attorney's fees and costs if the City has to file any legal action to enforce the Note. MAKER: 18555 Developers. LLC B y: Gil Dezer. Manager Promissory Note— 18555 Developers. LLC 18555 DEVELOPERS LLC 18001 COLLINS AVENUE, 31ST FLOOR SUNNY ISLES BEACH, FL 33160 305-932-1000 February 14, 2013 Hans Ottinot City Attorney City of Sunny Isles Beach 18070 Collins Avenue Sunny Isles Beach, FL 33160 Re: Porsche Design Tower Miami Project- 18555 Collins Avenue("Project") Dear Mr.Ottinot: The undersigned on behalf of 18555 Developers LLC as Developer of the above referenced project is hereby requesting an extension on the payment of Project Bonuses Fees due on the Project in the amount of$3,818,880. These extensions are requested to become effective upon the issuance to the Project of the Foundation only Permit (expected date of issuance of March,. 13) through the earlier to occur of the issuance by the City of the Master Building Permit or December 1, 2013 at which time the Bonus Fee Payments shall become due and owing. We confirm that the Developer will enter into a Promissory Note in favor of the City for the applicable amounts corresponding to the Project Bonuses and that the City has assessed an interest rate of Five (5%) per annum (pro-rated) on those outstanding Fees and Payments from the issuance of the Foundation only Permit through the earlier of issuance of the Master Building Permit or December 1,2013. This of course is subject to the approval of the City Commission. This will also reconfirm that the Project will not be availing itself of 15,000 TDR's previously allocated to the Project. Please confirm the balance on deposit with the City in any primary or sub account in favor of the Developer and Project. Please confirm and advise upon approval by the City and we can formalize. Thank you for your consideration in this matter. �j are m For the Co pany WJS:jw Cc: Gil Dezer Andrew Richards Christopher Russo, City Manager Minal Shah, Finance Director Preview Page 1 of 1 of !ft e City of Sunny Isles Beach i 9 18070 Collins Avenue GI - " 2 Sunny Isles Beach, Florida 33160 > 7 i ` 'aN° ., (305)947-0606 City Hall °,s,� .�yO� (305)949-3113 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Hans Ottinot, City Attorney DATE: 2/21/2013 RE: Approving Extension of Payments for Transfer of Development Rights, Bonus Payments and Promissory Note. RECOMMENDATION: The attached Resolution is recommended for approval. REASONS: The zoning approval for the Porsche Design Tower Miami project requires the developer to pay the City for the development rights purchased under the bonus density program prior to issuance of a building permit. The developer of the Project, 18555 Developers. LLC. is asking for an extension regarding the required payments. The attached Promissory note outlines the terms and the extension of time to make the required payments for development rights in accordance with Zoning Resolution No. 11-Z-123 and Resolution 12-Z-129. ATTACHMENTS: Memo from Finance Director • Attachment A Promissory Note Approval of Ext. of payments http://sibagenda.sibf.net/Agenda/Preview.aspx?ItemID=986&MeetinglD=0&Meeting Date... 2/1 5/2013 SONNY isle City of Sunny Isles Beach G1d Cup,rIf nn s Norman S.Edelcup,A1ayor ,° V F 18070 Collins Avenue Isaac Action,Via Mayor > Jeanette Gano,Commissioner= Sunny Isles Beach, Florida 33160 Jennifer Levin,Cammimiomr K_____! George"Bud^Scholl,Cammrrnonrr '4 (305)947-0606 Ciq•1-tall —1 r (305)949-3113 Fax Christopher J.Rtssso,GryAtanap ' F l O a`O 4,7 (305)947-2150 Building Department Hans Offing Gry Attmnry , o Jane A.Hines,Gry Clerk r� of suN '� (303)947-3107 Fax MEMORANDUM TO: The Honorable Mayor and City Commission FROM: Minal Shah, Finance Director DATE: February 21, 2013 RE: Promissory Note with 18555 Developers LLC-Porsche Design Tower 18555 Developers LLC is requesting an extension of payment for Bonus Fees due on the project for 53,818,880 and Transfer of Development Rights for S975,000 for a total of$4,793,880. The terms of the promissory note include an annual interest rate of 5%. Payment is originally due at time of issuance of the Foundation Only Permit, which is expected to be issued no later than March 2013. The extension will provide the payment to be accepted by the earlier of the date of the issuance of the Master Building Permit or December 1, 2013. Based on the terms of the promissory note and the City's current and anticipated cash flow for the next 10 months, I recommend the City enters into this promissory note.