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Home My WebLink AboutR-00-0638J-00-666 7/21/00 RESOLUTION NO. A RESOLUTION OF THE MIAMI CITY COMMISSION, APPROVING, IN PRINCIPLE, A NEGOTIATED AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, WITH THE STATE OF FLORIDA, BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FOR (1) A LEASE OF APPROXIMATELY 152,747.8 SQUARE FEET OF SOVEREIGN SUBMERGED LAND ADJACENT TO 2640 SOUTH BAYSHORE DRIVE, MIAMI, FLORIDA, TO BE USED FOR PUBLIC MARINA PURPOSES, ON A FIRST-COME, FIRT-SERVE BASIS, WITH AN INITIAL LEASE FEE OF $15,178.86 OR SIX PERCENT (6%) OF GROSS REVENUE FROM THE WET SLIP RENTALS, WHICHEVER IS GREATER; AND (2) A WAIVER OF DEED RESTRICTION FOR APPROXIMATELY 134,370.4 SQUARE FEET OF CITY - OWNED SUBMERGED LANDS TO BE USED FOR PUBLIC MARINA PURPOSES ON A FIRST-COME, FIRST -SERVE BASIS, WITH AN INITIAL FEE OF $19,000, OR SIX PERCENT (6%) OF GROSS REVENUE FROM THE WET SLIP RENTALS, WHICHEVER IS GREATER; FURTHER DIRECTING THE CITY MANAGER TO BRING THE FINAL NEGOTIATED AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO THE CITY COMMISSION FOR ITS FINAL REVIEW AND CONSIDERATION. WHEREAS, the City of Miami entered into a lease with Grove Harbour Marina and Caribbean Marketplace, LLC ("Grove Harbour"), dated March 12, 1999 (the "Lease"), for the leasing of approximately 6. 95 acres of upland and 6.6 acres of submerged land in the Dinner Key area; and WHEREAS, in accordance with the Lease, the City sought a waiver of deed restrictions for the submerged lands from the Board of Trustees of the Internal Improvement Trust; and CITY COMMISSIOR MEETING Cid' J U L 2 0 2000 Resolution No.m^ WHEREAS, during this process this process it was discovered that a portion of the submerged lands are sovereign submerged lands; and WHEREAS, for the City to continue with the Lease and continue utilization of these submerged lands, it is necessary for the City to obtain a lease from the State for the sovereign submerged lands; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. A negotiated agreement, in a form acceptable to the City Attorney, is hereby approved", in principle, with the State of Florida, Board of Trustees of the Internal Improvement Trust for (1) a lease of approximately 152,747.8 square feet of sovereign submerged land adjacent to 2640 South Bayshore Drive, Miami, Florida, to be used for public marina purposes, on a first-come, first -serve basis, with an initial lease fee of $15,178.86 or six percent (6%) of gross revenue from the wet slip rentals, whichever is greater; and (2) a waiver of deed restriction for approximately 134,370.4 square feet of City - owned submerged lands to be used for public marina purposes on a The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, including but not limited to those prescribed by applicable City Charter and Code provisions. Page 2 of 3 Go— first-come, first -serve basis, with an initial fee of $19,000, or six percent (6%) of gross revenue from the wet slip rentals, whichever is greater. Section 3. The City Manager is hereby directed�' to bring the final negotiated agreement, in a form acceptable to the City Attorney, to the City Commission for its final review and consideration. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. 3/ PASSED AND ADOPTED this 20th day of July , 2000. ATTEST: JOE CAROLLO, MAYOR In accordance with Miami Code Sec. 2-35, since the Mayor did not indicate approval of this legislation by signing it in the designated placeprovided, said legislation now becomes effective with the elapse of tpn (10) days fro th e of Caction regarding same, without the Mayor E'� rcisi vet Clerk WALTER J. FOEMAN CITY CLERK APPROD AS O F Y VILARELLO TTORNEY BSS AND CORRECTNESS ,j J. F 11 If the Mayor does not sign this Resolution, it shall become effective at the end of ten calendar days from the date it was passed and adopted. If the Mayor vetoes this .Resolution, it shall become effective immediately upon override of the veto by the City Commission. Page 3 of 3 0 , .. CITY OF MIAMI, FLORIDA 36 INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and Members Of the City Commission FROM City Manager DATE: JUL I 2000 FILE: SUBJECT: Grove Harbour Manna and Caribbean Marketplace REFERENCES: ENCLOSURES: The City of Miami and Grove Harbour Marina and Caribbean Marketplace, LLC ("Grove Harbour') entered into a lease agreement on March 12, 1999 ("Grove Harbour Lease") for the leasing of approximately 6.95 acres of upland and 6.6 acres of submerged land in Dinner Key. In accordance with the Lease, the City sought a Partial Modification of Restrictions for the submerged land from the Board of Trustees of. the Internal Improvement Trust Fund. During this process it was discovered that a portion of the submerged land is sovereign submerged land. In order to proceed with the Grove Harbour. Lease, the City, must seek the following from the State of Florida: 1) Lease from the State ("State Lease") approximately 157,747.8 sf of submerged land lying between the bulkhead line and the US Harbor Line ("Sovereign Submerged Lands"); and 2) Waiver of deed restriction for approximately 134,370.4 sf of submerged land lying waterward of the US Harbor Line. 3) Disclaimer by the State to certain lands that were permanently improved prior to June 11, 1957 pursuant to the Butler Act. The lease from the State is governed by Section 18-21.011(1)(a)I of the Florida Administrative Code which requires the payment of an amount per square foot or 6% of gross revenue from the wet slips, whichever is greater ("Lease Rate"). This amount is increased annually based upon an average change in. the Consumer Price Index. The lease rate is currently $0.1183 per sf, multiplied by 1 times the lease term and discounted 30% because of the first-come, first -serve nature of the facility. Assuming the lease term is 20 years, the cost will be $15,675.71/year or 6% of gross, whichever is greater; if the term is 25 years, the cost will be $16,328.88 or 6% of gross, whichever is greater. The waiver of deed restriction is a negotiable item with the State. On two previous occasions the City agreed to pay an amount equal to the Lease Rate at the Monty's site and the Coral Reef Yacht Club site. State staff, is requesting additional consideration that we believe is unreasonable. Consequently, it is likely State and City staff will not be in agreement at the time the matter is presented to the Board of Trustees and the City will be required to make its case before the Trustees. 00— 1] Honorable Mayor and Members Of the City Commission Page 2 C Pursuant to the Grove Harbour Lease, Grove Harbour will be required to pay 100% of any amounts due to the State during years 1 and 2. Thereafter, the City will be required to pay the first $50,000 of any amount due to the State and the balance will be paid by Grove Harbour. At the time the City acquired the upland property from Bessemer Properties in 1946, a large amount of land had been filled since the original platting of Dinner Key. The issuance of a disclaimer by the State will help eliminate a cloud on title as it relates to certain lands lying in the Grove Harbour lease area. Additionally, since it was discovered that the recently reconstructed docks are located on sovereign land, it is necessary for the City to obtain certain permissions from the State for having worked on State land. The additional approvals required are as follows: a) authorization for the after -the -fact severance of 650 cubic yards of sovereign material; b) ' issuance of an after -the -fact consent of use for the construction and replacement of 1,200 linear feet of bulkhead; and C) issuance of an after -the -fact consent of use for the placement of 160 linear feet of riprap along the bulkheads. In order to proceed to the Trustee's meeting, I would request the support and authority of the City Commission to take the following actions within the terms more generally described above: 1) Negotiate the waiver of deed restriction; 2) Request a lease agreement with the State for the Sovereign Submerged Lands; 3) Accept a disclaimer for certain lands that the City owns pursuant to the Butler Act; 4) Negotiate an amendment to the Grove Harbour Lease to provide for Grove Harbour's acknowledgment of the terms and conditions of the State Lease and Waiver and to clarify Grove Harbour's obligations regarding the payment of monies to the State related to said State Lease and Waiver. 5) Request authorization from the State for the after -the -fact severance of material and the issuance of consents of use for replacement of the bulkhead and placement of A riprap referenced above. 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