HomeMy WebLinkAboutSEOPW-CRA-R-01-0134RESOLUTION NO. SEOPW/CRAG 1 Q .4
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE SOUTHEAST OVERTOWN/PARK WEST
COA IUNITY REDEVELOPMENT AGENCY (THE
"CRA") AUTHORIZING THE EXECUTIVE DIRECTOR
TO SELL TO PARK PLACE ASSOCIATES LLC OR ITS
DESIGNEE ("PARK PLACE") ALL THE CRA'S RIGHT,
TITLE AND INTEREST IN FEE SIMPLE TITLE TO
THE PROPERTY DESCRIBED ON EXHIBIT "A"
ATTACHED HERETO AND MADE A PART HEREOF
(THE "PROPERTY") AND CRA'S INTEREST, AS THE
LANDLORD, UNDER THE TERMS AND PROVISIONS
OF THAT CERTAIN LEASE AGREEMENT (THE
"LEASE") BY AND BETWEEN THE CITY OF MIAMI
AND CRUZ DEVELOPMENT, LTD. ("CRUZ") AND
RELEASE ITS CLAIMS FOR DEFERRED RENT
UNDER THE LEASE IN EXCHANGE FOR (i) THE
PAYMENT OF A PURCHASE PRICE OF TWO MILLION
TNVO HUNDRED THOUSAND ($2,200,000) DOLLARS;
(ii) THE REIMBURSEMENT TO THE CRA OF ALL
COSTS AND EXPENSES INCURRED BY THE CRA IN
COtiNECTION WITH THE TRANSACTION
INCLUDING, WITHOUT LIMITATION, APPRAISAL
FEES, AUDIT FEES AND ATTORNEYS' FEES AND
COSTS THAT ARE INCURRED BY THE CRA IN
CONNECTION WITH THE TRANSACTION, NOT TO
EXCEED $50,000; (iii) THE AGREEMENT OF THE
TENANT UNDER THE LEASE TO LEASE TO THE CRA
THE SPACE CURRENTLY OCCUPIED BY THE
DOWNTOWN NET OFFICE AT NO COST FOR A TERM
OF FIVE YEAR; AND (iv) PARK PLACE BEING
REQUIRED TO PAY ALL CLOSING COSTS AND
EXPENSES, INCLUDING DOCUMENTARY STAMPS,
SURTAX AND RECORDING FEES.
WHEREAS, the CRA is responsible for carrying out redevelopment activities
and projects in the Southeast Overtown/Park West Community Redevelopment
Area established pursuant to the CRA Redevelopment Plan; and
WHEREAS, Cruz has developed a residential development consisting of 463
residential units on the Property.
SE0pWJCRA
01- 144
WHEREAS, the CRA is the owner of the real property described on Exhibit
"A" attached hereto and made a part hereof (the "Property") which is the subject of
the Lease; and
WHEREAS, Park Place has proposed purchasing all the CRA's right, title
and interest in the Property and the CRA's interest as Landlord under the Lease in
consideration of the payment to the CRA of Two Million Two Hundred Thousand
($2,200,000) Dollars plus all costs incurred by the CRA in connection with analyzing
and closing the transaction not to exceed $50,000, including, without limitation,
appraisal fees, audit fees, and attorneys' fees and costs; and
WHEREAS, the proposed purchase price exceeds the fair market value of the
Property as reflected in the appraisal_ obtained by the CRA and all claims by the
CRA for accrued but unpaid rent under the terms of the Lease; and
WHEREAS, the City Manager of the City of Miami has analyzed the Lease
and reviewed the appraisal and audit of the Property and recommended to the
Board of Directors of the CRA that they accept the offer of Park Place and sell the
Property to Park Place; and
WHEREAS, the CRA has determined that it believes that the sale of the
Property to Park Place is in the best interest of the CRA and is consistent with the
Redevelopment Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE SOUTHEAST OVERTOWN/ PARK WEST COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this
Resolution are incorporated herein as if fully set forth in this Section.
Section 2. The Board of Directors of the CRA hereby authorizes the
Interim Executive Director of the CRA to sell the Property and the CRA's interest
as the landlord under the Lease to Park Place and waives its claims with respect to
the deferred rent under the Lease for a purchase price of Two Million Two Hundred
Thousand ($2,200,000) Dollars with Park Place (i) to reimburse the CRA up to
$50,000.00 for the following costs and expenses incurred by the CRA in connection
with analyzing and closing the transaction including, without limitation, appraisal
fees of $7,500.00, auditing costs of $6,000.00, attorneys' fees and costs; (ii) obtain
the agreement of the tenant under the Lease to lease to the CRA the space
currently occupied by the Downtown NET Office on the same terms and conditions
as the space is currently leased to the City of Miami Net Office (i.e., no cost) for a
term of five (5) years from the date of closing; and (iii) pay all closing costs and
expenses in connection with the sale, including, without limitation, documentary
stamps, surtax and recording fees.
SEOPW/CRA
2 ®1- 434
M
Section 3. The Interim Executive Director is authorized to execute on
behalf of the CRA any and all documents required to consummate the transaction.
Section 4. The sale is approved subject to compliance with all provisions of
applicable law, including, without limitation, notice requirements.
Section 5. This resolution shall be effective upon its adoption.
th
PASSED AND APPROVED this 1 day of December, 2001.
-4MMW-
Art ur E. Teele, Jr., Chairman
Cit lerk
APPROVED AS TO FORM AND
CORRECTNESS:
9z"/&'D V.,
William R. Bloom, Esq.
Holland & Knight LLP
Special Counsel
MI_A1 #1095904 v2
3
SEOPW/CRA
01- 1 3-4
EXHIBIT "A"
LEGAL DESCRIPTION
Lots 1 thru 24, Block 24N, "MAP OF MIAMI, DADE COUNTY, FLORIDA",
according to the plat thereof, as recorded in Plat Book B at Page 41, of the Public
Records of Dade County, Florida, less the West 55.00 feet of Lots 10 through 15, less
the North 12.50 feet of Lots 1 thru 10, less the East 22.50 feet of Lots 1 and 24, less
that external area formed by a 25.0 foot radius arc concave to the Southwest and
being tangent to a line that is 37.5 feet South of and parallel to the centerline of
N.W. 10 Street, and tangent to a line that is 47.5 feet West of and parallel to the
centerline of North Miami Avenue, less that external area formed by a 25.00 foot
radius arc concave to the Northwest and being tangent to a line that is 25.00 feet
North of and parallel to the centerline of N.W. 9 Street and being tangent to a line
that is 47.50 feet West of and parallel to the centerline of North Miami Avenue, less
that area formed by a 25.00 foot radius arc concave to the Northeast and being
tangent to a line that is 25.00 feet North of and parallel to the centerline of N.W. 9
Street and being tangent to a line that is 80.00 feet East of and parallel to the
centerline of N.W. 1 Avenue, and less that area formed by a 25.00 foot radius arc
concave to the Southeast and being tangent to a line that is 37.50 feet South of and
parallel to the centerline of N.W. 10 Street and being tangent to a line that is 80.00
feet East of and parallel to the centerline of N.W. 1 Avenue.
MIAI #1103981 v1
SEoPW/CRA
Ill.— 134
CITY OF MIAMI, FLORIDA Iwo
INTER -OFFICE MEMORANDUM ITEM 1C
-o: Chairman Teele and DATE: December 11, 2001 FILE:
' Members of the CRA Board Proposed Sale of the
SUBJECT: Reversionary Interest in the
Property Located at 915 N.W.
FROM: REFERENCES: I' Avenue (Biscayne View
Annette E. Lewis Apartments) to Park Place
Acting Executive Di for
ENCLOSURES: Associates, LLC or its designee
Resolution
Park Place Associates, LLC ("Park Place") has approached the Southeast Overtown/Park West
Community Redevelopment Agency of the City of Miami (the "CRA") and requested that the
CRA convey to Park Place the reversionary interest in the property located at 915 N.W. 1st
Avenue (the "Property").
BACKGROUND & ANALYSIS:
The first proposal from Park Place was for the CRA to convey the reversionary interest in the
Property to Park Place in exchange for $150,000.00 contribution to not -for -profit organization
operating in the Redevelopment Area. Subsequent to the initial offer the CRA staff has obtain
appraisals of the Property, conducted a review of the books and records regarding the operation
of the Property and had Holland & Knight LLP as special counsel to the CRA perform a legal
analysis of the obligations of the tenant under the Lease to the CRA. Based upon this analysis
the CRA staff has concluded that the value of the Property is far in excess of the proposed
donation by Park Place.
Based upon the analysis of the Lease performed by Holland & Knight LLP, as special counsel to
the CRA, Holland & Knight LLP has determined that a legal argument can be made that Park
Place owes the CRA approximately $1,111,508.59 in deferred rent under the terms and
provisions of the lease as a result of a transaction that took place in 1998 which transaction could
be construed as a "refinance" which would make the deferred rent due and payable. Counsel to
Park Place disputes this interpretation of the Lease and it is their assertion that no deferred rent is
due and payable. It is further the position of Park Place that the deferred rent will be eliminated
at such time as it completes its pending foreclosure.
The CRA staff has reviewed the appraisal of the Property prepared by J.B. Alhale, MAI
indicating that the fair market value of the reversionary interest of the CRA in the Property is
$880,000.00.
Based upon subsequent negotiations with representatives of Park Place, Park Place has submitted
an offer to the CRA on November 15, 2001 to purchase the reversionary interest of the CRA in
the Property and take an assignment of the Lease in exchange for a payment in the amount of
$2,200,000.00 plus up to $25,000.00 to reimburse the CRA for the cost for the appraisal obtained
by the CRA, the auditing costs, attorney's fees and costs and closing costs. The offer was
contingent on the CRA conveying good and marketable title to the Property and the release of all
lease claims, with the closing to occur on or before January 31, 2002.
SEOPW / CRA
n.�
ITEM 1C
December 11, 2001
RECOMMENDATION:
In light of the fact that the proposal from Park Place exceeds the appraised value of $880,000.00
and the disputed unpaid rent in the amount of $1,111,508.59 by in excess of $200,000.00 it is my
recommendation that the CRA sell to Park Place, or its designee, all of the CRA's right, title and
interest and fee simple title to the reversionary interest in the Property and the CRA's interest as
the landlord under the terms and provisions of the Lease for a purchase price of $2,200,000.00
with Park Place being responsible to reimburse the CRA for all costs and expenses incurred by
the CRA in connection with the transaction, including, without limitation, appraisal fees,
auditing costs, attorney's fees and costs incurred by the CRA in connection with the proposed
transaction; that Park Place obtain the agreement of the tenant under the Lease to lease to the
CRA the space currently occupied by the Downtown NET Office at no cost for a term of ten (10)
years on the same terms and conditions currently occupied by the City of Miami NET Office;
and that Park Place pay all closing costs and expenses in connection with the transaction
including documentary stamp taxes and recording fees.
MIAI #1096249 v1
SEOPW /rR A
01- 134
ITEM 1 C
RESOLUTION NO. SEOPW/CRA
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY
REDEVELOPMENT AGENCY (THE "CRA") AUTHORIZING
THE EXECUTIVE DIRECTOR TO SELL TO PARK PLACE
ASSOCIATES LLC OR ITS DESIGNEE ("PARK PLACE") ALL
THE CRA'S RIGHT, TITLE AND INTEREST IN FEE SIMPLE
TITLE TO THE PROPERTY DESCRIBED ON EXHIBIT "A"
ATTACHED HERETO AND MADE A PART HEREOF (THE
"PROPERTY") AND CRA'S INTEREST, AS THE LANDLORD,
UNDER THE TERMS AND PROVISIONS OF THAT CERTAIN
LEASE AGREEMENT (THE "LEASE") BY AND BETWEEN
THE CITY OF MIAMI AND CRUZ DEVELOPMENT, LTD.
("CRUZ") AND RELEASE ITS CLAIMS FOR DEFERRED
RENT UNDER THE LEASE IN EXCHANGE FOR (I) THE
PAYMENT OF A PURCHASE PRICE OF TWO MILLION TWO
HUNDRED THOUSAND ($2,200,000) DOLLARS; (II) THE
REIMBURSEMENT TO -THE CRA OF ALL COSTS AND
EXPENSES INCURRED BY THE CRA IN CONNECTION
WITH THE TRANSACTION INCLUDING, WITHOUT
LIMITATION, APPRAISAL FEES, AUDIT FEES AND
ATTORNEYS' FEES AND COSTS THAT ARE INCURRED BY
THE CRA IN CONNECTION WITH THE TRANSACTION; (III)
THE AGREEMENT OF THE TENANT UNDER THE LEASE
TO LEASE TO THE CRA THE SPACE CURRENTLY
OCCUPIED BY THE DOWNTOWN NET OFFICE AT NO
COST FOR A TERM OF TEN YEAR; AND (IV) PARK PLACE
BEING REQUIRED ,TO PAY ALL CLOSING COSTS AND
EXPENSES, INCLUDING DOCUMENTARY STAMPS,
SURTAX AND RECORDING FEES.
WHEREAS, the CRA is responsible for carrying out redevelopment activities and
projects in the Southeast Overtown/Park West Community Redevelopment Area established
pursuant to the CRA Redevelopment Plan; and
WHEREAS, Cruz has developed a residential develop consisting of 463 residential units
on the Property.
WHEREAS, the CRA is the owner of the real property described on Exhibit "A" attached
hereto and made a part hereof (the "Property") which is the subject of the Lease; and
WHEREAS, Park Place has proposed purchasing all the CRA's right, title and interest in
the Property and the CRA's interest as Landlord under the Lease in consideration of the payment
to the CRA of Two Million Two Hundred Thousand ($2,200,000) Dollars plus all costs incurred
SEOPW/CRA
01` 114
ITEM 1C
by the CRA in connection with analyzing the transaction including, without limitation, appraisal
.,, fees, audit fees, and attorneys' fees and costs; and
WHEREAS, the proposed purchase price exceeds the fair market value of the Property as
reflected in the appraisal obtained by the CRA and all claims by the CRA for accrued but unpaid
rent under the terms of the Lease; and
WHEREAS, the City Manager of the City of Miami has analyzed the Lease and reviewed
the appraisal and audit of the Property and recommended to the Board of Directors of the CRA
that they accept the offer of Park Place and sell the Property to Park Place; and
WHEREAS, the CRA has determined that it believes that the sale of the Property to Park
Place is in the best interest of the CRA and is consistent with the Redevelopment Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
SOUTHEAST OVERTOWN/ PARK WEST COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are
incorporated herein as if fully set forth in this Section.
Section 2. The Board of Directors of the CRA hereby authorizes the Executive
Director of the CRA to sell the Property and the CRA's interest as the landlord under the Lease
to Park Place and waives its claims with respect to the deferred rent under the Lease for a
purchase price of Two Million Two Hundred Thousand ($2,200,000) Dollars with Park Place (i)
to reimburse the CRA for all costs and expenses incurred by the CRA in connection with
analyzing and closing the transaction including, without limitation, appraisal fees, auditing costs,
attorneys' fees and costs; (ii) obtain the agreement of the tenant under the Lease to lease to the
CRA the space currently occupied by the Downtown NET Office on the same terms and
conditions as the space is currently leased to the City of Miami Net Office (i.e., no cost) for a
term of 10 years from the date of closing; and (iii) pay all closing costs and expenses in
connection with the sale, including, without limitation, documentary stamps, surtax and
recording fees.
Section 3. The sale is approved subject to compliance with all provisions of
applicable law, including, without limitation, notice requirements.
Section 4. This resolution shall be effective upon its adoption.
PASSED AND APPROVED this 1 Ph day of December, 2001.
Arthur E. Teele, Jr., Chairman
2 LOPW / CRA
o - 134
ITEM 1C
Walter J. Foeman
City Clerk
APPROVED AS TO FORM AND
CORRECTNESS:
Alejandro Vilarello
City Attorney
3
SEOPW / CRA
o"I_- I ? 4
TO Chairman Arthur Teele, Jr. and
Members of the CRA Board
FRO%1
Annette E. Lewis
Acting Executive Director
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
DATE November 15, 2001 FILE
SUBJECT Copy of the Final Offer for the purchase of
the CRA's interest in the Park Place
Leasehold
REFERENCES
EPJCLOS'JRES
Attached please find a copy of the offer suhmirted by Park Pl;ice LT_,C for our consideration. The City
Mana-er and I will issue our final recommendation at the next scheduled CRA Board Meeting.
cNa
v
SEOPW A
o I - 134
RCV BY: C 1 TY OF N1 I A`I 1 : 11- 15- 1 1 : 53PN1
PARK PLACE ASSOCIATES, LLC
c/o CF Properties Corp.
930 Washington Avenue, 0 Floor
Miami Beach, Florida 33139-5084
Tel: (305) 674-7300
Fax: (305) 674-7305
November 15, 2001
VIA TELECOPIER (3Q 72-46461
Ms. Azlnette Lewis
Acting Executive Director
Community Redevelopment Agency
City of Miami'
CJ
70
30013zs.ayne Botlevard S,Lte 430
-+
Miami, Florida 33131
VIAL TELECOPIER (305-416-1U19�
Ms. Dena Bianchino
- -
-
-�
Assistant City Manager
-�
__'
D
Office of the City Manager
444 S.W. Second Avenue
I0t' Hoot
Miami, Florida 33130
VIA TELECOPIER (305416-2156)
Ms. Lori. Billberry
Director of Asset Man4exceut
Department
Office of Asset 1KIanagement
City of Miami
444 S.W. $ecoxxd Aveuue
31 Floor
Miami, Rorda 3 313 0
Rc: Southeast Overtown/Park West Lease and Development Agreement
dated June 14, 1988 as assigned by the City of.tMdiami ("City") to the
Southeast/Overtown/Fark West Com»mnity.Redevelopmg!ntAgency of
the City of Miami ("CRA "), as amended (the "Lease "), The Lease pertains
to the real property described on Exhibit B to dx ,Lease together with all
appurtenances thereto and all improvements thereon (the "Property").
Derr Ms. Lewis, Ms. Biancbin-o and Ms. Burberry:
Park place Associates, LLC ("Park Place") has offered to purchase the CRA's interest In the
Pxvpexty and the Lease.
SEOPW/CRA
rim � nr�•.�u ..-.. ii.�in.ii �.. �. �����1_�n- �n�^�
C
RCS:' BY: CITY OF MIA,yi
1 l - 15- 1 1 :53Pb1 :.305 '24646� - - •---..._ .
COMM- A. TEELE : # 4
Ms. Annette Lewis
Ms. Dena Bianchino
MsE Lori Billberry
November 15, 2001
Page 2
r�
Eqy
Y
Yesterday we met to discuss the Park Place offer and to rc&Ch a f3tW acceptable to Park Place and which the CRA could recommend for approvalrv. Also io z�'Mlich was
tendance at
the meetutg were representatives =iod attomeys for each of us.
Our discussions were very productive. At the conclusion of the meetizl Place put its final offer in writing, 'This letter is in response to that request. you asked that Park
Our find offer is as follows:
Park Place offers to purchase the CRA's entire; interest i:a, the PzoPerty and the Lease
for a total purchase price of
Two Million Two Hundred Thousand ($2,200,000). Ln addition, Park Place
will pay, or reiuzbursn the CRA for payment of, the costs of the appraisals
obtaiued by the CRA, a>zd the documentary stamps and surtax due on the deed
and outer closing instruments, up to a maximum of S25,000,
The above ,price is the total amount to be paid by Park Place. .As you know, this offer is
considerably more ball Park place's prior offer and it represents the higrbest offer we can make.
The offer is substantially higher than any of the appraisals obtained by the CRA, the City -or Park
Place. Park Place believes, however•; that this proposal is in the best imterest of both parties.
Of course, this Offer is conditioned upon the CRA's conveyance of good and marketable title
to the Property and a rcleaso of all Lease claims_ «'e would expect Closing to occur no latex than
Jauuazy 31,2002.
Please let us know if you need anything fiuther,
PARK PLACE ASSOCIATES, LLC
By;
ael dedman
NiDF/ch
CC. Brian P- Tague (via telecopier 305-536-1116)
Santiago Echemendia (via telecopier ;05-536-1116)
Alex Vilarello (via telecopier 305--416-1801)
William Bloom (via telecaPier 305-789-7799)
c:1vpdo.slfriedmanlbiscvieviiSEO+r+zrtown.l:r
SEOPW/CRA
_ : - 4
N
19
The Honorable Chairman & Members of
the Coma»unity Redevelopment Agency Board
NOV 3 0 2W
Sale of CRA Property
Located at 915 NW I Avenue
An item is being scheduled for consideration by the CRA Board at its meeting of December 11, 2001
regarding a purchase offer from Park Place to purchase the CRA-owned property located at 915 NW 1
Avenue, Miami, Florida (the "Property").
In accordance with the City Commission's directive, the administration has been working with the CRA
to analyze the sale of the Property to Park Place. " To do suclt,.the CRA contracted with J.B, Alhale, MAI,
to perform an appraisal of the site. Mr. Ali'iale determinedithe value of the (cased fec; interest (CRA's
interest) of the Property to be $880,000.
Additionally, Park Place procured a summary appraisal from Integra Really Resources that concluded the
value of the leased fee interest to be $760,000.
CRA also hired Joel Gfick, CPA, to review the rents due. Assuming the deferred rent is due, the rent due
totals $1,1 11,508.59 as of October 31, 2001.
On November 15, 2001, the CRA reved an offer from Park Place in the amount of $2,200,000 to
purchase the Property and lease. In addition, Park Place will pay, or reinnburse the CRA for payment of
the costs of appraisal obtained by the C�-A and doc stamps and surtax due on the deed and other closing
instruments, up to $25,000. This offer is conditioned upon the CRAB conveyance of good and inarketable
title and a release of all lease claims. Additionally, closing must occur no later than January 31, 2002.
Based upon the findings of the appraisals and the calculation of rent due, the offer by Park Place is
reasonable and is recommended for acceptance, We would further recommend that Park Place provide as
additional consideration the continued leasing of the existing Downtown NET office space to the City
under the santc terms that the parties have been operating, ie. at no cost. We would recommend the City
and Park Place formalize this arrangement by entering into a lease for a period of five years with the
option to renew for one additional five year period.
C:AG:ll1i rlm C KA Park Plucc
c: Alejandro Vilarello, Citv Attorney
Bill Bloom, Esq.
Annette Lewis, CRA
SEOPW / CRA
0 1 y- 134
PARK PLACE ASSOCIATES, LLC
F. c/o CF Properties Corp.
930 Washington Avenue, 4'h Floor
Miami Beach, Florida 33139-5084
Tel: (305) 674-7300
Fax#- (305) 674-7305
November 15, 2001
VIA TELECOPIER (305-372-46461
Ms. Annette Lewis
Acting Executive Director
Community Redevelopment Agency
City of Miami
300 Biscayne Boulevard, Slite 430
Miami, Florida 33131
VIA TELECOPIER (305-416-1019)
Ms. Dena Biaochino
Assistant City Manager
Office of the City Manager
444 S.W. Second Avenue
10 Floor
Miami, Florida 33130 -
VIA, TFLECOPIER (305-416-215k)
Ms. Loki Billbeny
Director of Asset Management
Department
Office of .Asset Management
City of Miami
444 S.W. Second Avenue
P Floor
Miami, Florida 33130
RE: Southeast Overtown/Park West Lease and Development Agreement
dated June 14, 1988 as assigned by the City of.cL,fiami ("City") to the
SoutheastlOvertownlPark West Community Redevelopment Agency of
the City ofMiami ("CRA'), as amended (the "Lease'). The Lease pertains
to the real property described on .Exhibit B to the ,Lease together with all
appurtenances thereto and all improvements thereon (the "Property').
Dear Ms. Lewis, Ms. Bianchino and Ms. Billberry:
Park Place Associates, LLC ("Park Place") has offered to purchase the CRA's interest in the
Property and the Lease. . ropes / CRA
94
Ms. Annette Lewis
Ms, Dena Bianchino
Ms. Lori Billberry
November 15, 2001
Page 2
Yesterday we met to discuss the Park Place offer and to reach a final proposal which was
acceptable to Park Place and which the CRA could recommend for approval_ Also in attendance at
the meeting were representatives and attorneys for each of us.
Our discussions were very productive. At the conclusion of the meeting you asked that Park
Place put its final offer iu writing. This letter is iu response to that request.
Our final offer is as follows:
Park Place offers to purchase the CRA's entire interest in the Property and the Lease
for a total purchase price of'
Two Million Two Hundred Thousand ($2,200,000). .In addition, Park Place
will pay, or reimburse the CRA for payment of, the costs of the appraisals
obtained by the CRA and the documentary stamps and surtax due on the deed
and other closing instruments, up to a maxim= of $25,000.
The above price is the total amount to be paid by Park Place. As you know, this offer is
considerably more than Park Place's prior offer and it represents the highest offer we can make.
The offer is substantially higher thin any of the appraisals obtained by the CRA, the City or Park
Place. Park Place believes, howeve4:that this proposal is in the best interest of both parties.
P .
Of course, this offer is conditioned upon the CRA's conveyance of good and marketable title
to the Property and a release of all Lease claims_ We would expect Closing to occur no later than
January 31,2002.
Please let us know if you need anything further.
PARK. PLACE ASSOCIATES, LLC
�I
ILI
,.��� L
MDF/ch
cc: Brian P. Tague (via telecopier 305-536-1116)
Santiago Echemendia (via telecopier 305-536-1116)
Alex Vilarello (via telecopier 305416-1801)
William Bloom (via telecopier 305-799-7799)
l.° oAwpdocs\RiedmanNscv!vMSEOvertown.ltr
SEOPW /cRA
� .� � A
N
R
The Honorable Chairman & Members of NOV 3 0 2001
the Community Redevelopment Agency Board
ls�
Sale of CRA Property
Located at 915 NW l Avenue
An item is being scheduled for consideration by the CRA Board at its meeting of December 11, 2001
regarding a purchase offer from Park Place to purchase the CRA-owned property located at 915 NW 1
Avenue, Miami, Florida (the "Property").
In accordance with the City Commission's directive, the administration has been working with the CRA
to analyse the sale of the Property to Park Place. " To do such.' the CRA contracted with J.R. Alhale, MAI,
to perform an appraisal of the site. Mr. AYliale determined�he value of the leased fee; interest (CRA's
interest) of the Property to be $880,000.
Additionally, Park Place procured a summary appraisal front Integra Realty Resources that concluded the
value of the leased fee interest to be $760,000.
CRA also hired Joel Glick, CPA, to review the rents due. Assuming the deferred rent is due, the rent due
totals $1,1 11,508.59 as of October 31, 2001.
On November 15, 2001, the CRA rile' ved an offer from Park Place in the amount of $2,200,000 to
purchase the Propetty and lease. In addition, Park Place will pay, or reimburse the CRA for payment of
the costs of appraisal obtained by the CAA and doc stamps and surtax due on the deed and other closing
instruments, up to $25,000. This offer is conditioned upon the CRAB conveyance of good and marketable
title and a release of all lease claims. Additionally, closing must occur no later than January 31, 2002.
Based upon the findings of the appraisals and the calculation of rent due, the offer by Park Place is
reasonable and is recommended for acceptance, We would further recommend that Park Place provide as
additional consideration the continued leasing of the existing Downtown NET office space to the City
under the same terms that the parties have been operating, ie. at no cost. We would recommend the City
and Park Place fonnalize this arrangement by entering into a lease for a period of five years with the
option to renew for one additional five year period.
, :f. CAG
,,,//m C:KA Park Placc
c: Alejandro Vilarello, City Attorney
Bill Bloom, Esq.
Annette Lewis. CRA
M
SEOPW /CR A
0 1. - 4�