HomeMy WebLinkAboutItem #01 - Discussion ItemCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
To : Honorable Mayor and Members DATE June 17, 1997 FILE
of the City Commission
SUBJECT : Latest County offer
re: Maritime Park
OLA
FROM : Pdwardarq eZ REFERENCES
City Manage ENCLOSURES:
In order to address the question of how the most recent County offer ( Exhibit A) differs
from the offer tendered on May 6. 1997, please accept the following comparison of some
of the major items.
Base Rent
Exhibit B shows the two proposals side -by -side. Under the new offer, the City would
receive $10.36 Million less on a present value basis.
Environmental Remediation
The old offer had no limit on the City for environmental remediation costs. Under the
new offer, the upside exposure to the City for remediation costs is limited to $10 Million
with an out provision available to both parties that should environmental costs exceed
$20 Million then, either party can terminate the lease. However, a question remains as to
whether, if the lease has terminated due to high remediation costs (projected or incurred),
the City is still on the hook to clean everything up because the need for remediation, at
that point, has been identified.
The County did not agree to limit the City's environmental costs to the configuration of
the property "as is" today. Also, the City would have no input as to design aspects that
could carry higher environmental price tags than would otherwise be necessary.
Other Provisions (or lack thereof)
a) The County contemplates no restrictions as to hotel, gaming, office, or residential
development on the property. General retail activities would be limited to 150,000
gross leasable square feet not inclusive of 30,000 square feet just outside of the arena
bowl. County agrees to construct $500,000 bridge to Bayside. Public Park and
Baywalk will not be less than 45% of total upland area. Development of the property _
is to be coordinated with DDA (i.e. no Maritime Board).
b) City Police and Fire services are to be provided only to non -port property.
c) The County agrees to remove reverter clauses on two parcels on the Municipal Justice
Tract only if the City agrees to sell them the MJC facility. The City currently has
this property up for bid and anticipates being able to sell the property to the private
sector and get it back on the tax roll (not to mention one less jail within the City
limits).
d) The County agrees to sell us the Stadium Warehouse at its appraised value. The City
would own the site today (it was part of the City's compensation under the Lummus
Island transaction with the County) but for a deed restriction on the property limiting
it to a sports use. If the City took the County up on this offer, the City would be
"buying" the property a second time.
e) The County will maintain the Miami River shoreline and Biscayne Bay Spoil Islands
but not the arterial roads and canals.
f) The new offer is silent as to who pays for DRI mitigation costs and although it offers
to pick up 50% of the. -legal costs associated with any arena -related lawsuits, it does
not discuss the sharing of any adverse litigation damages. .
Conclusion
Taking everything into account, the County is now offering less economic incentives
than it did before.
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"1 Exhibit A - Page 1 of 2
Terms and Modified Terms Acceptable to The County
From the City of Miami Response Letter dated June 10, 1997
County agrees to rental payment terms with the exception that the County will make an up fr9jit
payment of $25 million in November, 1997 and will begin the balance of annual lease payments
in November, 2000.
County to remove the reverter clause restricting the sale of two parcels on Municipal Justice
Tract - 1155 NW llth Street, if City agrees to sell the County that portion of the property
currently being used as correctional facilities to assist municipal police services.
County to sell to the City the Stadium Warehouse - 850 to 864 NW 23rd Street, without
restrictions, for appraised value.
County provide the City with currently available G.I.S. building level data base for geographic
area of City and 1 mile perimeter.
County will maintain Miami River Shoreline and Biscayne Bay Spoil Islands.
No Subrogation or Assignment of Leasehold Rights.
City not liable for Payment of Future Ad Valorem Taxes.
All Site Development and Use Subject to City master Plan, Zoning and DRI Development Order
as well as coordination with DDA.
Mandated City Police and Fire Services on all uses of property that are non -port related (public
park and baywalk, and arena site).
County will assume 50% of reasonable costs associated with defending any lawsuits precipitated
by the County's sole decision and efforts to construct a new arena.
County agrees to construct pedestrian bridge to Bayside, with cost not to exceed $500,000.
Programming for outdoor events of attendance with more than 3,000 on the Project site shall be
subject to approval by the City's Bayfront Park Management Trust.
+ Exhibit A — Page 2 of 2 `
Environmental Remediation
City to pay 50% of the costs of remediation up to, but not to exceed, $10,000,000 as the City's
share.
County and City to agree that if the total cost of environmental remediation exceeds
$20,000,000, each has the right to terminate the Lease agreement.
City shall have releases or contribution protection with respect to all work performed at the
Property. —
County will assume all liability for any contamination at the Property which is discovered during
the Lease Term which is not identified as pre-existing at the Property at the Commencement of
the Lease.
Primary Uses
Public Park and Baywalk as a percentage of total upland area to be determined by
the public planning process currently being undertaken, with the exception of not
be less than 45%. _
Cruise Terminals - 2 to 5 berthing slips for Cruise Vessels
Sports and Entertainment Arena
Ancillary Uses
Public Cultural Facilities, Museums and Visitor Attractions - no limit
Specialty Entertainment - Dining, Theaters, Specialty Cinema, Clubs - no limit
Specialty cruise, charter boat and tour boat marina - slip limit to be determined
through public planning process currently being undertaken
Restricted Uses
Retail - Shoppers goods, general merchandise - not to exceed 150,000 square gross
leasable square feet, which is not inclusive of the up to 30,000 square leasable feet
outside of arena bowl on new arena site
Cargo and Ferry Services - No Cargo ship, container ship or auto ferry vessel berthing
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Exhibit B - Comparison of Base Rent
County's County's
offer of Offer of
6-May-97 16-Jun-97
1 $29,000,000 $25.000,000
2 4,000,000 0
3 4,000,000 0 —
4 4,000,000 4,000,000
5 4,000,000 4,000,000
6 4,000,000 4,000,000
7 4,000,000 4,000,000
8 4,000,000 4,000,000
9 4,000,000 4,000,000
10 4,000,000 4,000,000
11 4,060,000 4,060,000
12 4,120,900 4,120,900
13 4,182,714 4,182,714
14 4,245,454 4,245,454
15 4,30.9,136 4,309,136
16 4,500,000 4,500,000
17 4,635,000 4,635,000
18 4,774,050 4,774,050 _
19 4,917,272 4,917,272
20 5,064,790 5,064,790
21 5,216,733 5,216,733
22 5,373,235 5,3.73,235
23 5,534,432 5,534,432
24 5,700,465 5,700,465
25 5,871,479 5,871,479
26 6,047,624 6,047,624
27 6,229,052 6,229,052
28 6,415,924 6,415.924
29 6,608,402 6,608,402
30 6,806,654 6,806,654
31 7,010,853 7,010,853
32 7,221,179 7,221,179
33 7,437,814 7,437,814
34 7,660,949 7,660,949
35 7,890,777 7,890,777
36 8,127,501 8,127,501
37 8,371,326 8,371,326
38 8,622,465 8,622.465
39 8,881,139 8,881,139
40 9,147,573 9,147,573
41 9,422,001 9,422,001
42 9.704,661 9,704,661
43 5,896,024 9,995,801
44
45
$275,007,579 $267,107,356
NPV @ 6.0% $97,089,507 $86,732,122 -
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Mayor-Joe-Carollo
,D:305-854-4001 JUN 10'97 9:24 No.004 P.06
Maritime Park Agreement
Summary of Terms and Conditions
LEASE TERMS:
•
A forty-five (45) year Initial lease term. —
•
Rental rate for years i -10 shall be $4,000,000 per year.
•
Rental rate for years l 1-15 shall be $4,000,000 per year increasing by i.5% per year
until and Including year 15.
•
Rental rate for year 16 shall be $4,500,000.
Rental rate for years 17-45 shall be $4,500,000 per year Increasing by 3% per year.
•
At the Commencement or the Initial lease year, the County shall make a payment to the
City of $29,000,00Q consisting of the sum of the following: (I $4,000,000 for first
year rent plus (1I) advance rent payments for years 44 and 45.
TOTAL OF ALL GASH RENT PAYMENtS•- $279,107,355 it Net Present Value of
$97,424,170. (note: see summary of lease payment schedule at end of document)
IN
ADDITION TO RENTAL PAYMENTS:
•
County to defease outstanding Parks Bonds valued at $3,950,000
County contributes cost of new Fire Station in -Park up to total of $2,000,000
•
County to remove the reverter clause restricting the sale of two parcels on Municipal
Justice Tact - l 155 NW 1 i th Street.
•
County to convey title without restrictions to Stadium Warehouse - 850 to 864 NW
23rd Street.
•
County to provide City G.I.S. building level data base for geographic area of city and 1
mile perimeter.
e
County to assume full costs of maintaining enhancements to regional arterial roadways ,
on US 1 /Dixie Highway, U.S. i /Biscayne Boulevard from the Miami River to City Ilmlis
and SW 8th Street from Brickell Avenue to City Limits.
•
County to assume full maintenance costs for canals, Biscayne Bay shorelines, Miami
River shoreline and Biscayne Bay Spoll Islands. County to convey title to southerly two-
diirds of parking lot adjacent to WASH pump station at 3rd Street and NW North
River Drive.
•
County to remove lease conveyance approval provision from Virginia Key Beach deed.
6/10/07 10:33a
Mayor-Joe-Carollo TD;305-854-4001 JUN 10'97 9:24 No.004 P.07
LEASE CONDITI:
• No Subrogatlon or Assignment of Leasehold Rights
• City Not Liable for Payment of Future Ad Valorem Taxes (If assessed against private
improvements/leases).
If, for any reason, commercial development on the property, except the arena, Is
exempted from ad valorem. taxes, the County shall make an annual payment In- lieu -of -
taxes to the City
All Site Development at Use Subject to City Master Plan, Zoning and-DRI Development
Order as well as oversight by the DDA and a to be. formed Maritime Board, .
• Mandated City Police and Fire Services.
• County will save and hold harmless the City from any damages arising from lawsuits by
Leisure Management International by virtue or County's sole decision and efforts to
construct a new arena.
County shall, at its sole expense, mitigate any requirements Imposed as a result of
amendments to the Downtown DRI Development Order necessitated by the County's
development program for the property.
s
• County agrees to construct pedestrian bridge to Bayslde per 12/7/95 lease terms.
• Programming for outdoor events on the Project site shall be subject to approval by the
Clty's Bayfront Park Management Trust.
+ The Arena shall Include "Miami" within its name.
• The County shall not contest the docking of any vessels, regardless of size, at Watson .
Island.
ENVIitONMENTAL REMEDIATION:
The City and County acknowledge that as of the date of this Letter of intent, the City has made no
Investigation of environmental matters with respect to the Property. Accordingly, prior to entering
Into a Lease Agreement, the Clty shall undertake an envlronmmntal audit of the Property to assess
the existence of contamination, Identify the types and amounts of hazardous substances In the soil
and water, designate which areas are affected by the contamination or can be potentially affected;
and evaluate the extent and cost of remedial action which may be required under the applicable laws
and regulations, taking Into consideration the site layout and description of the Improvements, and
land use activities which are being proposed for development of the Property. %
The County agrees to cooperate with the City and its Consultant by Identifying and furnishing copies
of all reports, data, or other information In the possession of the County, or any of its agencies,
pertaining to the environmental condition of the Property.
If the environmental audit discovers that contamination exist at the Property, the City will agree to
pay 50% of the costs of remedladon up to, but not to exceed, $10,000,000 as the City's share.
Additionally, the Lease Agreement shall contain contractual provisions Qmiting the Clty's subsequent
liability In connection with environmental matters which shall Includes
1. The County shall be designated as the "generator" of the wastes produced by any
investigation, remedial action, or construction activities undertaken at the Property;
2. the City shall have releases or contribution protection with respect to all work
(construction and remediadon) performed at the Property;
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Mayor—Joe—Carollo ID:305-854-4001 JUN 10'97 9:25 No.004 P,08
3. the City wl'' "'serve approval rights with respect to the deslf - A construction of the
ImprovemE k the Property, in the event that any specific ,nent of the design or
construction would require extraordinary remedlatlon action and result in an unexpected
' and substantial Increase in costs;
4. the County will assume all liability for any contamination at die Property which is
discovered during the Lease Term which Is not Identified as existing at the Property at the
Commencement of the Lease Ten-n.
S. Any renledlatlon costs due to changes In the configuration of the property's existing
shoreline or relocation of the existing slip shall be borne completely by the County.
USE AND DEVELOPMENT PARAMETERS:
Use and Development Parameters for Proposed 60 acre Maritime Park Project:
Primary Uses
Public Park and Baywalk - Not less than 6096 of the total upland area
(previously 80% w/o arena)
Cruise Teiminals - 2-5 berthing slips for Cruise Vessels
Sports and Entertainment Arena
Ancillary Uses
Public Cultural Facilities, Museums and Wtor Attractions - no limit
Specialty Entertainment - Dining, Theaters, Specialty Cinema, Clubs - no limit
Specialty cruise, charter boat, and tour boat.marina - not to exceed 25 slips
o Restricted Uses
Retail - Shoppers goods, general merchandise - Not to exceed 100,000 gross
leaseable square feet
Office - Administrative support space serving primary and ancillary uses -
No primary use business of ce space permitted.
Residential - No residential condominium or apartment uses.
Hotel - No hotel or transient overnight accommodations (excluding cruise vessels).
Gaming - No class I, class 11 or class III gaming shall be permitted.
Cargo and Ferry Services - No Cargo ship, container ship or auto fens vessel
berthing.
C�)
6/10/97 10:33a.
Mayor-Joe-Carollo ID:305-854-4001
SUMMARY OF Lr �SE PAYMENT SCHEDULE
Lease term In years
Initial Lease Payment.
Annual Increase
Commencing In year
Increase to
In Year
Annual Increase
Commencing In Year
Initial Cash Payment (Inclusive of first annual lease payment) $
JUN 10'97
45
$ 4,000,000
11
$4,500,000
16
3.0%
17
29,000,000
YEAR Cash Payments _
Initial + 1
$29,000,000
2
4,000,000
3
4,000,000
4
4,000,000
5
4,000,000
6
4,000,000
7
41000,000
8
4,000,000
9
41000,000
10
4,000,000
11
4,060,000
12
4,120,900
13
4,182, 714
14
4,245,455
15
4,309,137
16
4,500,000
17
4,633,000
18
41774,OSO
19
4,917,272
20
5,064,790
21
5,216,734
22
S,373,236
23
5,534,433
24
5,700,466
25
5,871,460
26
6,047,624
27,
6,229,OS 3
28
6,415,925
29
6,600,403
30
6,806,655
31
7,010,655
32
7,221,181
33
7,437,816
34
7,660,950
35
7,690,779
36
8,127,502
37
8,371,327
38
8,622,467
39
8,881,141
40
9,147,575
41
9,422,002
42
9,704,662
43
9,995,801
44
45
$279,107,355
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9:26 No.004 P.09
6110/97..;10:33a
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~ CITY OF MIAMI, FLORIDA
INTER-OFFICE MEMORANnUM
~ ro : Honorable Mayor and Members oATE ~ June 17, 1997 FILE
of the City Commission
sua,ECr : Latest County offer
re: Maritime Park
Gtc
FROM : dward Marq eZ REFERENCES : ....,
City Manage ENCLOSURES
In order to address the question of how the most recent County offer (Exhibit A) differs
from the offer tendered on May 6. 1997, please accept the following comparison of some
of the major items.
Base Rent
Exhibit B shows the two proposals side-by-side. Under the new offer, the City would
receive $10.36 Million less on a present value basis.
Environmental Remediation
The old offer had no limit on the City for environmental remediation costs. Under the
new offer, the upside exposure to the City for remediation costs is limited to $10 Million
with an out provision available to both parties that should environmental costs exceed
$20 Million then, either party can terminate the lease. However, a question remains as to
whether, if the lease has terminated due to high remediation costs (projected or incurred),
the City is still on the hook to clean everything up because the need for remediation, at
that point, has been identified.
The County did not agree to limit the City's environmental costs to the configuration of
the property "as is" today. Also, the City would have no input as to design aspects that
could carry higher environmental price tags than would otherwise be necessary.
Other Provisions (or lack thereof)
a) The County contemplates no restrictions as to hotel, gaming, office, or residential
development on the property. General retail activities would be limited to 150,000
gross leasable square feet not inclusive of 30,000 square feet just outside of the arena
bowl. County agrees to construct $500,000 bridge to Bayside. Public Park and
Baywalk will not be less than 45% of total upland area. Development of the property _
is to be coordinated with DDA (i.e. no Maritime Board).
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b) City Police and Fire services are to be provided only to nan-port property.
c) The County agrees to remove reverter clauses on two parcels on the Municipal Justice
Tract only if the City agrees to sell them the MJC facility. The City currently has
. this property up for bid and anticipates being able to sell the property to the private
sector and get it back on the tax roll (not to mention one less jail within the City
limits).
d) The County agrees to sell us the Stadium Warehouse at its appraised value. The City
would own the site today (it was part of the City's compensation under the Lummus
Island transaction with the County} but for a deed restriction on the property limiting
it to a sports use. If the City took the County up on this offer, the City would be
"buying" the property a second time.
e} The County will maintain the Miami River shoreline and Biscayne Bay Spoil Islands
but not the arterial roads and canals.
f) The new offer is silent as to who pays for DRI mitigation costs and although it offers
to pick up 50% of the.-legal costs associated with any arena-related lawsuits, it does
not discuss the sharing of any adverse litigation damages.
Conclusion
Taking everything into account, the County is now offering Less economic incentives
than it did before.
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' "'1 exhibit A - Page 1 of 2
Terms and Modified Terms Acceptable to The County
From the City of Miami Response Letter dated June 10, 1997
County agrees to rental payment terms with the exception that the County will make an up fropt
payment of $25 million in November, 1997 and will begin the balance of annual lease payments
in November, 2000.
County to remove the reverter clause restricting the sale of rivo parcels on Municipal Justice
Tract - 1155 NW 11th Sheet, if City agrees to sell the County that portion of the property
currently being used as correctional facilities to assist municipal police services.
County to sell to the City the Stadium Warehouse - 850 to 864 NW 23rd Street, without
restrictions, for appraised value.
County provide the City with currently available G.I.S. building level data base for geographic
area of City and 1 mile perimeter.
County will maintain Miami River Shoreline and Biscayne Bay Spoil Islands.
No Subrogation or Assignment of Leasehold Rights.
City not liable for Payment of Future Ad Valorem Taxes.
All Site Development and Use Subject to City master Plan, Zoning and DRI Development Order
as well as coordination with DDA.
Mandated City Police and Fire Services on all uses of property that are non-port related (public
park and baywalk, and arena site).
County will assume 50% of reasonable costs associated with defending any lawsuits precipitated
by the County's sole decision and efforts to construct a new arena.
County agrees to construct pedestrian bridge to Bayside, with cost not to exceed $500,000.
Programming for outdoor events of attendance with more than 3,000 on the Project site shall be
subject to approval by the City's Bayfront Park Management Trust.
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~~ ~ Fnviron_mental Remediation
City to pay 50% of the costs of remediation up to, but not to exceed, $10,000,000 as the City's
share.
County and City to agree that if the total cost of environmental remediation exceeds
$20,000,000, each has the right to terminate the Lease agreement. .
City shall have releases or contribution protection with respect to all work performed at the
Property. -
County will assume all liability for any contamination at the Property which is discovered during
the Lease Term which is not identified as pre-existing at the Property at the Commencement of
the Lease.
Primary Uses
Public Park and Baywalk as a percentage of total upland area to be determined by
the public planning process currently being undertaken, with the exception of not
be less than 45%. ._
Cruise Terminals - 2 to 5 berthing slips for Cruise Vessels
Sports and Entertainment Arena
Ancillary Uses
Public Cultural Facilities, Museums and Visitor Attractions - no limit
Specialty Entertainment -Dining, Theaters, Specialty Cinema, Clubs - no limit
Specialty cruise, charter boat and tour boat marina -slip limit to be determined
through public planning process currently being undertaken
Restricted Uses
Retail -Shoppers goods, general merchandise -not to exceed 150,000 squaze gross
leasable squaze feet, which is not inclusive of the up to 30,000 square leasable feet
outside of arena bowl on new azena site
Cargo and Ferry Services - No Cazgo ship, container ship or auto ferry vessel berthing
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Exhibit B -Comparison of Base Rent
County's County's
offer of Offer of
6-May-97 16-Jun-97
1 $29,000,000 $25,000,000
2 4,000,000 0
3 4,000,000 0 -
4 4,000,000 4,000,000
5 4,000,000 4,000,000
6 4,000,000 4,000,000
7 4,000,000 4,000,000
8 4,000,000 4,000,000
9 4,000,000 4,000,000
10 4,000,000 4,000,000
11 4,060,000 4,060,000
12 4,120,900 4,120,900
13 4,182,714 4,182,714
14 4,245,454 4,245,454
15 4,3Q9,136 4,309,136
16 4,500,000 4,500,000
17 4,635,000 4,635,000
18 4,774,050 4,774,050 ._
19 4,917,272 4,917,272
20 5,064,790 5,064,790
21 5,216,733 5,216,733
22 5,373,235 5,3.73,235
23 5,534,432 5,534,432
24 5,700,465 5,700,465
25 5,871,479 5,871,479
26 6,047,624 6,047,624
27 6,229,052 6,229,052
28 6,415,924 6,415,924
29 6,608,402 6,608,402
30 6,806,654 6,806,654
31 7,010,853 7,010,853
32 7,221,179 7,221,179
33 7,437,814 7,437,814
34 7,660,949 7,660,949
35 7,890,777 7,890,777
36 8,127,501 8,127,501
37 8,371,326 8,371,326
38 8,622,465 8,622,465
39 8,881,139 8,881,139
40 9,147,573 9,147,573
41 9,422,001 9,422,001
- 42 9,704,661 9,704,661
43 5,896,024 9,995,801
44
45
$275,007,579 $267,107,356
NPV ~ 6.0% $97,089,507 $86,732,122 -
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~ ~laynr-Joe-Carollo ,x:305-854-4001 JUN 10'97 9:24 No .004 P.06
Maritime Park Agreement
Summary of Tsrms and Conditions
LEASE T ERMS:
• A forty-five (45) year initial lease term. -
• Rental rate for years i • 10 shall be 3,000,000 per year.
• Rental rate for years l 1- t S shall be $4,000,000 per year increasing by 1.596 per year
unfit and including year 15.
• Rental rate for year 16 shall be $4,500,000.
Rental rate for years 17-45 shall be $4,500,000 per year Increasing by 39b per year.
• At the Commencement of the Inttlat lease year, the County shall make a payment to the
City of 529,000,00Q conslsdng of the sum of the following: (i 54,000,000 for first
year rent plus (tl) advance rent payments for years 44 and 45.
TOTAL OF ALL CASH RENT PaYrttx~tTS•- 5279,107,355 ~t Net Present Vafue of
~97,~624,17'0. (note: see summary of (ease payment schedule at end of document)
iN AppITION TO RENTAL PAYMENTS
• County w defease outstanding Parks Bonds valued at 33,950,000
~ ~ County contributes cost of new Fire Station In-Park up to total of $2,000,000
• County to remove the reverter clause resutcdng the sale of two parcels on Municipal
]ustlce Tract - t 155 NW 1 i ~ Sweet.
• County to convey title without restricttvns to Swdium Warehouse - 850 to 864 NW
23~ Street.
• County to provide Ctty G.I.S. building level data base for geographtt area of City and 1
mile perimeter. -
. e County to assume full costs of malntaintng enhancements co regional arterial roadways ,
on US 1 /Dixie Highway, V.S. i /Biscayne Boulevard from the Mlamt River to Clty IIm1ts
and SW 8~ Street from Brickell Avenue to C1ty Llmlu.
• County to assume full maintenance costs for canals, Biscayne Bay shorelines, Mlamf
Rhrer shoreline and Biscayne Bay Spot[ Islands. County to convey title to southerly two-
d~irds of parking lot adJacent to WASH pump station at 3rd Street and NW North
River Drive.
• County to remove tease conveyance approval provision from Virginia Key Beach deed.
6/>i0%9T 10:33a
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Mayor-Joe-Carollo TD;305-854-4001 JUN 10'97 9:24 No .004 P.07
. I.EAS~ C(7NDIT1 ~:
• No Subrogation or Assignment of Leasehold Rigtrts
• City Not Liable for Payment of Future Ad Valorem 'faxes (If assessed against private
improvements leases)
+ if, for any reason, com-nercial development on the property, except the arena, Is
exempted from ad valorem. taxes, the County shall make an annual payment !n• Ileu-oF-
taxes to the City
All Slte Development 8t Use Subject to Clry Master Plan, Zoning and$RI Development
Order as well as oversight by the bbA and a to be. formed Maritime Board, .
• Mandated City Police and Flre Services.
• County will save and hold harmless the City from any damages arising from lawsutts by
leisure Management International by virtue of County's sole decision and efforts to
construct a new arena.
County shad, ac its sole expense, mitigate any requirements Imposed as a result of
amendments to the Downtown DRI Development Order necessitated by the County's
development program for the property.
• County agrees t,o construct pedestrian bridge to Bayslde per t 2/7/P5 (ease terms.
• Programming for outr;oor events on the Project site shall be subJect tv approval by the
. Clty°s Bayfront Park Management Trust.
+ The Arena shall include "Miami" within its name.
• The County shall not contest the docking of any vessels, regardless of size, at Watson .
Island.
ENVIitaNM~NTAL tZ~M~DIATI4N:
The City and County acknowledge that as of the dace of this Letter of intent, the Clty has made no
Invesdgatton of environmental mattetx with respect to the Property. Accordingly, pilot td entering
Into a Lease Agreement, the Gty shall undertake an environmental audit of the Property to assesx
thr existence of contam[nagvn, Identify die types and amounts of hazardous substances In the Boll
and water, designate which areas are affected by the contamination or can be potentiaity affected;
and evaluate the extent and cost of remedial action which may be required under the applicable taws
and regulations, taking Ines consideration tits site layout and descdptton of the Improvements, and
tang use activities which are being proposed for development of the Property. %
The County agrees to cooperate with the City and hs Consultant by Identifying and famishing copies
of aU reports, data, or other Information (n the possession of the County, or any of its agencies,
pertaining to the environmental wndhion of the Property.
If the envlranmenta[ audit discovers ti~at contamination exist at the Property, titre City rvllt agree co
pay 5Q96 of the costs of remediation up to, but not W exceed, x 10,0{~O,OG14 as the City's share.
Additionally, the Lease Agreement shalt contain contracwal provisions Qmlting the Gty's subsequent
liability fn connection with environmental masers which shall Includes
1. The County shall be designated as the "generator of the wastes produced by any
lmesttgatlon, remedial action, or consuuctlon activities undertaken at the Property;
2. the City shall have releases or canu•Ibution protection with respect to all work
(construction and remedlation) performed at the Property;
C2~ 6/:10/97 10:s3a
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Mayor-Joe-Carollo ID~305-854-4001 JUN 10'97 925 No .004 P,08
3. the Clty wl'' "`serve approval rights with respect to the deslf ~ 'd construction of the
• ImprovemE ~t the Property, In the event that any specific ,Went of the design or
construction would require extraordinary remedlatlan action and result !n an unexpected
' and substantial Increase in cosu;
4, the County will assume all liability for any contamination at die Property which h
discovered during the Lease Term which (s not identified as existing at the Property at lire
Commencement of the Lease Term.
5. Any remedlatlon costs due to changes In the configuration of the property's existing
shoreline or relocation of the existing slip shall be borne completely by the County.
USE ANt7 DEVELOPMENT PALZAMETEILS
Use and pevelopment Parameters for Proposed 60 acre Maritime Park Protect:
Primary Ltses
Public Park and Baywalk -Not less than 6096 of the total upland area
(previously 8096 w/o arena)
Cruise Terminals - 2-5 berthing slips for Cruise Vessels '
Sports and Entertainment Arena
Ancillary Uses '
Public autturat Facilities, Museums and V(sltor Attractions - no limit
Specialty Entertainment - pln(ng, Theaters, Specialty Cinema, Clubs - no IIm1t
Specialty ctufse, charter boat, and tour bvat~marlna - not to exceed 25 slips
o Restricted Uses
Befall -Shoppers goods, general merchandise - Not to exceed 100,000 gross
leaseable square feet
Office -Administrative support space serving primary and ancltfaty uses -
Noprimary use business ofilce space permitted. ,
Residential - No residential condominium or apartment uses.
Hotel - No hotel or transient overnight accommodations (excluding cruise vessels).
. Gaming - No class I, class II or class ill gaming si>all be permitted.
Cargo and f'rerry Services - No Cargo ship, container ship er auto fens vessel
berthing.
C~)
6/10/97 10:33a.
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~layor~Joe-Carollo ID~305-854-4001
.' SUMMARY OF t'" •~~SE ('AYMl:NT SCMEDU~.~
tease term In years .
lnltfal Lease Payment .
Annual Increase
Commenci»g In year
lncrease co
In Year .
Annual Increase
Comme»ctng In Year
Initial Cash Payment (!nclusive of first annual lease payment) $
JUN 10'97
45
~ 4,000,000
! .S9b
11
$4,500,000
i6
3.0~~0
17
29,0OO,000
YEA[t Cash Payments _
inltfal + 1 $29,000,000
Z 4,000,000
3 4,000,000
4 4,000,000
5 4,000,000
b 4,000,000
7 4,000,000
8 4,000,000
9 4,000,000
10 4,000,000
1 i 4,060,000
i 2 4,120,900
13 4.182,7f4
14 4,245,455
15 4,309,137
~ 6 4,500,000
17 4,635,000
18 4,774,OS0
19 ~ 4,917,272
20 5,064,790
21 5,216,734
~
22 , S,373,236
23 5,534,433
24 5,700,46b
25 5,871,480
26 6,047,624
27, 6,229,053
28 6,415,925
29 6,608,403
30 6,80b,b55
31 ~ 7,010,855
32 7,221,181
33 7,437,816
34 7,660,950
35 7,690,779
36 8,127,502
37 8,37'i,327
38 8,622,467
39 8,881,141
40 9,147,575
41 9,422,002
42 9, 704,682
43 9,995,801
44
45
5279,107,355
C4~
926 No .004 P.09
6/10/97..;10:33a
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