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HomeMy WebLinkAboutR-95-0552RESOLUTION NO. 0 U — 00 7 A RESOLUTION AUTHORIZING THE EXTENSION OF THE DEADLINE, FROM AUGUST 4, 1995 TO SEPTEMBER 1, 1995, FOR THE RECEIPT OF PROPOSALS FOR THE DEVELOPMENT OF A CAMPGROUND AND RELATED RECREATIONAL FACILITIES ON VIRGINIA KEY PURSUANT TO THE CITY'S REQUEST FOR PROPOSAL(RFP) DOCUMENT ISSUED MAY 5, 1995, AS AMENDED; FURTHER APPOINTING INDIVIDUALS AS REPLACEMENT MEMBERS TO THE REVIEW COMMITTEE FOR SAID UNIFIED DEVELOPMENT PROJECT. WHEREAS, in accordance with the Unified Development Project process defined in the City Charter and Code, and pursuant to Resolution No. 95-252, adopted April 27, 1995, the City has issued a Request for Proposals for the development of a campground and related recreational facilities on Virginia Key; and WHEREAS, since the May 5, 1995 issue date, additional clarifying information is to be provided to all potential proposers in the form of an addendum pertaining to a utility easement on the property, an existing deed restriction, revised definitions of minority and women's business enterprises, and the scheduling of payments; and WHEREAS, it is the recommendation of the City Manager and the Director of the Department of Community Planning and Revitalization that it is most advantageous to the City to allow 1995 to September 1, 1995, to allow proposers additional time to integrate this information into their proposals; and WHEREAS, it is further necessary at this time to appoint new staff members to the Review Committee for this Unified Development Project from among recommendations provided by the City Manager due to staff resignation and departmental reorganizations; and 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. The deadline for the receipt of proposals for the development of a campground and related recreational facilities on Virginia Key pursuant to the City's Request for Proposal (RFP) document issued May 5, 1995, as amended, is hereby extended from August 4, 1995 to September 1, 1995 Section 3. The following individuals are hereby appointed as members of the Review Committee, replacing former City staff members Herbert J. Bailey, Sergio Rodriguez and Courtney D. Allen: Ron E. Williams Maggie Genova-Cordovi Miranda Albury -2- 95- 552 APPROVED AS TO FORM AND CORRECTNESS: 3- Jul I yJ 1G •00 nQ�Wrn ul i ice•` I Qn•JVJJJVlIVI vrw..Valul C TY OV MIAMI. NLONDA INTBR-OFFIGE MEMORANDUM 7 8 To : The Hotiorable, Mayor and Members p�Te llit � 199T '-� of the City Commission su cT : xesolut an to Extend RF P Deadlin• Appoint Replacement Committee h Virginia Key CnmpFroUnd RFP FROM NEF�AR�IC1r5 Crew eactRss City M r Reaolution �R�AOII''�l�lW It is respectfu4 t' rommimrlM that the CHy Co=inieaiar, adapt the attaehed resolution authorizing the extension of the deadline. from Augnat 4, 1go.5 to August 18, 1995, for the receipt of proposals for the develoo=aat of a campground and routed r=eational iae ities on Virginia Key pursuant to the City'ts Request for PropoW (RFP) "document issued May 5, 1995 as amendod. The le&lation would farther appoint individuals as to serve am replacement members to the review c tteo for Bald VitMcd t3rv0%1=unl Project. BAC$GR©TM The etta -hed legislation ham been prepared by the Developmmt 7)MAinn of the new Department of Community Pluu-,dag ead Revit4imUou, Ln accordance with tho UnMed Dcvclopm=t Project proses$ defined in the City Charter and Coda, and pursuant to Resolution No, 96-282 adopted April 27, 1995, the City iequcd. a Reque:el tur Praapowlss ibr the da velopme>Ac Of a campground and relvied re=eationid faea'litba on Virginia Rey, Since the May G, 1993 laeuer alerts, ad ditixuud clarifying Warruatson is to be provided to all patentiol pmpoaors in the form of an addendum regarding a utility raaemrnt on the property, an e3dating deed restriction, the: revised definitions of mino4y and women's business enterprises, and the wheduiing of payments. In order to give proposera optimum tim: to intelg to We Wormation into that proposals, the City Manager and the Rector of the Department find that it is Most advantageous to the City to allow an extension of the proposail sulwAL ed deadline, from August 4, 1993 to August 15, 1995. It is *ISO neaeessury at this t1=0 to vpoirftt now astaff mcxnberet to the Review Committee far th;ae Projart frnrn mmnno reo*n Le=dgtLcn$ provided by tlso City Nlawer. Due to a resignation and deparunental reoraanizslsc>,r►m, the fhtk►w;ng individuals are unable to s va: Hexbort J. Dailey, Sergio Rudriguez and Courmay D. . Allen. The City Manager recoi=ends the below listed individuate be appointed, as provided under Uesctaon 18-52.9 of the City Code: Ron L.'Witltarma, Aaalolaut City Manager, Du'ect,ua, Ci3A t>tival Svud Waste Maggie Genom-Cordovi, NET Adminiatratau Miranda hlWry,NF.T Administrator ij r , Mono DEPARTMENT OF DEVELOPMENT AND FACILITIES MANAGEMENT DIRECTOR'S OFFICE Suite 2430 111N.W. 1st Street Miami, Florida 33128-19,29 (305) 375-4513 July ` 3-2, 1995 Mr. Jack Luft, Director 'City of Miami Planning Department 275 N.W. Second Street Third Floor - Miami, FL 8 Deax�M uft: The purpose of this letter is to respond to the question you posed to me regarding the deed reverter which applies to the parcel of land conveyed to the City by the County in 1982 and which is now the subject of the Campground RFP. We have reviewed the agenda item, as well as the deed which was prepared at the time of conveyance, and have reached the conclusion that camping is a use which would be consistent with the deed restriction, which provides that the land is to be used for public park purposes. As long as the successful proposer agrees with these conditions, I do not anticipate that the County' will invoke the deed reverter. This conclusion was reviewed with our County Attorney's Office, which agrees with this conclusion. For 'further reference, I have attached the agenda item, as well as a copy of the deed for this piece of property. I`f you need further information from me, please feel free to call me. Agenda Item No. 2 (j) 3-16-82 } RESOMON NO- "60-$2. RESOLUTION AUTROMIMO THE COMVEYANCE TO THE CITY OF NIAMI OF APPROXMATELY ®s ACRES OF LAND ON VIROINIA x'EY FOR THE PURPOSE OF A PUBLIC PARK; AND AUi'NORILIMO THE COUNTY MANAOER TO EXECUTE A COUNTY DUD (F WHEREAS, this Board desires to accomplish the purposes outlined 4, In the accompanying memorandum, a copy of which is incorporated herein by reference, s NOW# THEREFORE, BE IT RESOLVED BY THE BOARD OP COUNTY f i COliMISSIONERS OF DADE COUNTY, PLORIDA, that this Board hereby approves the conveyance of a portion of Virginia Key to the City of Miami and authorises the County Manager to execute a Special t' 3 Warranty Deed for and on behalf of Dade County, in substantially .' the form attached hereto and made a part hereof. The foregoing resolution was offered by Commissioner r Bwwly B. PBLllips , who moved its adoption. The motion was seconded by Commissioner Clare Cesterle , t and upon being put to a vote, the vote was as follows: Barbara M. Carey Aye nt1bMitted info f�11 . c Clara Oesterle /yro ' �3f.![7)IC Beverly B. Phillips Aye rocord in CrJnmec,lrlri Vdlth Hams rveyRuvin Abent Fford, Jr. ltt�rrl/� G:i Barry D. SchreiberAle Ruth Shack A Jorge StepE. Valdes A" Stephen Clark City �'�``~r �4 t The Mayor thereupon declared the resolution duly passed and b r u adopted this 16th day of Nas'ah, 1912. c DADS COUNTY, FLORIDA BY ITS BOARD OP COUNTY COMMISSIONERS RICHARD P. BRINEEI$X Approved by County AttorneyUWj4 By; RAYM C;Z form and legal sufficiency.+�epu y RIM,b"+ b U.f 178 P� 700 Iva V MEMORANDUM; Agenda Item No. 2 (j) TO Honorable Mayor and Members DATA March 16, 1982 of Go my Commissioners suuacT Conveyance of a Portion of Virginia Key to the FROM City of Miami r Submitted into th^ em tiro ?�!3 9.s t`•' FiECOId�A'MCIQ �,h13.i`iii';' t-;�`�:":;;.;il It is respectfully recommended that the Boar 4p'6'd�tM conveyance of approximately 85 acres of land on Virginia Key to the City of Miami to be used as a public park. BACKOROUND On December 4, 1979. the Board approved the City of Miami/Dade County Land Exchange Agreement, Since that date, several exchanges of property, including Lummus Island, have taken place between the City and County which have met a variety of needs for both jurisdictions. The conveyance of a portion of Virginia Key to the City of Miami is the final item to be executed pursuant to the agreement. The City of Miami/Dade County Land Exchange Agreement speeiries that the land requested by the City of Miami on Virginia Key will be conveyed by appropriate instrument pursuant to the followingo 1. A public hearing before the Board of County Commissioners; and 2. That the City of Miami use this land as a public park. The City of Miami has submitted a master plan for the proposed development of this land. The master plan has been reviewed and approved by the Park Policy Committee, the Key Biscayne community through public hearings, and met@ the requirements set forth in the agreement. The planned development of the park includes camp- ground ballfields,lcoastal ities oprotection othrough nal irevegetation cle and tent caandiextension of seagrass beds, a lagoon preserve for swimming and limited fishing and a tree nursery which will buffer the public park from the Virginia Key Wastewater Treatment Plant. As a result of staff review, it is recommended that Dade County convey the land by deed with the following restrictions, subject to a reverter with an annual review by the County Manager or his designee: 1. The property is restricted to public park purposes only to be kept open to the public, providing maintenance and a level of service equal to or exceeding that which was provided by the County; MZ 2. Development or relocation of the facilities will be LI) In accordanoe as approved on the master plan and any revision& •hall first be approved by the board of count cosmmissia�rs at a ublio hearing. oar if sale ng faoilithea,are B eat to relocation, the replacenent faaillto shall Oonstructed and made available for V011c we before the'denclition and ; closing of the existing facility, and 3. the city bill prdbibIt put patrons access into the mar re�surga;;arsa (as defined byy bard of count Oae�etilesslo l Aasoluticn No. 474.49,' cp .Hr� LE ' mamoll CAN TUYANC2 Op A POSS M OF V7]IOYt<lA UT TO Tu cm or K=ANa A parcel of lard oa Virginia 207, is "WAY" bay, Ntda County. /lorida, boleg ;. a prtlon of sections 16, 17, 20 gad U of Township 34 loath, Son" 42 But, Oeds County, lnorids sad bobW once Particularly described as (ollOsot Commons at the point of istessectlsn of the catsrLime of Rlckembseher Cawoowely r with the South line of said Soetios 17, sold Point of lateneetioe being 26i9.97 fast 9 89.36'43" M at the Sevkaast corner of gold Soetiom 17, an usaostsd along ; the south line of "U Section 179 thouco no S 43"22'07" 2 aloes the eosterliue at said LLeksobaeker Comeorq for a dioNemce of 231.67 feet to a peiot of intor- asetlOa with the Southeasterly prelemgotiem of the corporate Sesmdary of the City of 1lianll thence run M 64•31162" 2 Alma said City of Miami Corpeesto boundary and its Southwatorly prolongation sod along the Soutbuwtssly right of nay Use of the Swags Treatment Plant Moons Note for a distance of 2733.77 feet to a pint on the East Use of said Section 17, said point also balms a pint on the North lima of the South im.00 feet of said Section 161 thews run 1 89.39'30" 2 4104 the North LIM of the South 10W.00 toot of said Section 16 for a distance of 67.13 feet to a point of iatersoction with the are of a elrewlar carte cemeave to tka Wet, the asater of whit► bears 6 62•62'1S" M from said point of letersecticao sal! point of intersection aline being the Poise of Hsimaing of thm Wmrsim described parealt thence rrs Southeasterly to Sostbmstorly along tba an of said circular on" ameava �.� to the Mast, baring a n diwe of 1630.00 feat, th"Co a antral angle Of 46.20.10", for an are distance of U34.38 East to a point of reverse turvatpra Y with the arc of a tutelar an to ohs lettl thence run Southwesterly aloes the we of said circular curve to the left, hating a radius of La30.00 feet, through a central angle of 21.36137", foe as ace distance of 311.03 feet to a point of compound curvature with the are of a alecxlar cum to the left) thsace rum Sowtlwestarly to Southeasterly aloes the we of said eirealat emu to the left, bowleg a realty of 330.00 feet, through a central segle of 62.27133". fag as are distance of 3S1.S9 teat to a point Of taspacy with a ;} line 23.00 test Ilerth Of and parallel with the property cawsyed to the �1 Onivarsity of Mima1N theses no a 43.22107" 2 along a Use 23.00 foot Mbrt1► of and parallel with the said University of Miami property for a distance of 170 test more or Is" to tM sous high water Use of Virginia W73 thence meander Northeasterly along the amen high water line of Virginia 2V for a distance of 4300 feet acts or lass to a pint of intersection with the North lime of the South 1000.00 feet of oaid Seetiom 161 tboam rasa I 49.39130" M alcag the North 11" of the South 1000.00 feet Of sold Section 16 for a distance of 3200 toot more or loss to the Point of Seglasing.9 SubMitted into the Public feCC)rd ill Conn-r- , i1 i"dl iii !teal on s 178 K 702 9 5 — S110itted into the puhlio record in connection vjij'ti COUNTY DEED item O'n 'Walitilr :Foe n3n T111S DEED, made this day of , A.D., 190i l.'1C1f" between DADE COUNTY, a political subdivision of the State of Florida, party of the first part, and CITY OF MIAMI, a municipal corporation, party of the second part, i WITNESSM t THAT the said party of the first part, for and In consideration of the sum of One Dollar ($1.00) and other good and valuable consideration to it in hand paid by the party of the second part, reoeipt rnereof is hereby acknowledged, has granted, bargained and sold to the said party of the second part, Its successors and aaaigns forever all right, title, interest and demand acquired by Dade County in and to the following land situate, lying acid being in Dade County, Florida: A parcel of land on Virginia Key, in Biscayne Bay, Dade County, Vlorida, 'oeing a portion of Sections 16, 17, 20 and 21 of Town- ship 54 '.,uth, Range 4? East, Dade County, Florida and being more Particularly described as follows: Commence at the point of Intersection of the centerline of Itickenbacker Causeway with the South line of said Section 17, said point of intersection being 2649.97 feet N 69056145" W of the eo.ttheant corner of said Section 17, as measured along.the South line of Reid Section 17; thence run S 45022107" E along the center- line of said Aickenbackor Causeway for a distance of 251.67 feet to a point of intersection with the Southwesterly prolongation of the Corporate Boundary of the City of Miami; thence run N 640341421 E .x along avid City of Miami Corporate Boundary and its Southwesterly prolongation and along the Southeasterly right of way line of the Sewage Treatment rlant Across Road for a distance of 2735.77 feet to a point on the East line of said Section 17, said point also being a point on th.i North line of the South 1000.00 feet of said Section 16, thence run S 89P 59'50" E along the North line of the South 1000.00 feet of said Section 16 for.a distance of 67.23 feet to a point of intersection with the are of a circular curve concave to the West, the center of which bears S 89042115" W from said point of intersection, said point of intersection also being the Point of Beginning of the herein described parcel; thence run Southeasterly to Southwesterly along the are of said circular curve concave to the West, having a radius of 1650.00 feet, through a central angle of'460201100, for an are distance of 2334.38 feet to r; a point of reverse curvature with the arc of a circular curve to the left; thence run Southwesterly along the arc of said circular curve to the left, having a radius of 1350.00 feet, through a aeno tral angle of 2P S6437", for•ara are distance of 517.03 feet to a paint of compound curvature with the are of R circular curve to the N r, M left,; thence run Southwesterly to Southeasterly along the are of said circular curve to the left, having a radius of 350.00 feet, through a central angle of 6202755", for an are dtetance of 381.58 feet to a point of tangency with a line 25.00 feet North of and parallel with the property conveyed to the University of N"anu thence run S 45022107" B along a line 25.00 feet North of sad parallel with the said University of Miami property for a distanoe of 110 feet sort or less to the mean high water line of YirNinia Key; thence meander Northeasterly along the Wean high water line of Virginia Key for a distance of 4300 feet more or 'loss to a point of intersection with the North line of the South d' 1000.00 feet of said Section 16; thence run N 09059150" H along the Vorth line of the South 1000.00 feet of said Section 16 for a distance of 3200 feet, more or less to the Point of Beginning. The COUNTY grants all the real property noted in this Deed to the City ao long as the City utilizes the said property for public park purposes only. The City agrees to keep the property open to the public, provide maintenance and a level of services equal to or exceeding that which was provided by the County. The CITY will provide a development schedule of the property and the development or relocation of any facilities will be in t. accordance with the approved master plan and any revisions stall first be approved by the Board of County Coassissionere at a public. ,. tearing. If existing facilities are subject to relocation, the replacement facility shall be constructed and made available for public use before the demolition and closing of the existing -- facility. The CITY shall prohibit park patrons access into the _ Narine Research aroR (as defined by the Board of County Cowmlesion Resolution No. R-674-69 on May 28, 1969). In the event the City —,, does not use the property as a public park, or conveys or attempts to convey all or a portion of the property, then the property -- described herein will revert back to the County or its successors or assigns at the option of the County. The restrictions are subject to an annual review by the County Manager or his designee. THIS grant conveys only the interest of the County and its Hoard of County Cowmiesionars in the property herein described, and shall not be dessied to warrant the title or to represent any state of facts concerning the,4siae. Submitted into RZ pvbl� "i I IJ �. i; record in connection vlih �:. item Fi or. M � .It n IN WITNESS WHERSOF the said part r or the 'first part has caused these presents to be executed in its n=* by Its Board of County Commissioners acting by, the Mayor or Yloo Mayor of'said Board, the day anti year aforesaid. %OFFICIAL !TEAL) ATMT t RICRARD P. ORIN KER CLERK By: Deputy Clerk Ctroult Court This instrument was prepared by: General Services Administration 1175 H.W. South River Drive Miami, Florida 33136 STATE OF PLORIDA COUNTY OF DADE DADE COUNTY, Fta= BY ITS BOARD 03P COUM CO MISSIONM Before me personally appeared and to me well known to be the Mayor or Vice Mayor and Clerk or Deputy Clerk of DadrCounty, Florida, who executed the foregoing instrument, and acknowledged to 'mid before me that they executed said instrument for the purposes heroin expressed. Witness my hand and official seal, this day or . 2982. My Commission expires: motary rubl1c state of Florida at Large Submitted into the public rocord in connection irvil.-fi it-,-rn 79--6- on 9 j .17 41,46 1� s .dd=M► .rWMWA� MWk tt� MW AWM � MW VWr�� �AWA AN low The Information Management Company 6954 N.W. 12 STREET, MIAMI, FLORIDA 33126 305-477-9149.800-287-4799 • FAX 305-477-7526 is ocopy in poor condition ' U;F 11434 235 left; thence run Southwesterly to Southeasterly alorr;; the src of +t = said circular curve to the left, having a radius of 350.00 rout, through a central ankle of 62027155", for an arc d2•sLarscu of ' 381.58 reet to a point or tanEency with a lisle 25.00 rout North of and parallel with the property conveyed to the Urriver�lty or Miami; thence run S 45022'07" E alone a line 25.00 feet Oorth of and parallel with thr^ said University of Miami pr'oper ty for a distance of 170 feet Wore or leas to the mean h1E1i:cator line of fr7•". Virginia Key; thence meander ticrthcasterly alonr; the mean hir'.h water line or Vir inia Key for a distance or 11300 r less to a point of intersection with Lhe 11crth line of the !',nuth l000.00 feet of said Section 16; thence run !1 81059'50" 5: nlonr; the Borth line of the South 1000.00 rct:t or cnw .e•ction lu for ~ :f •a distant. of 3200 suet r..avc o: :ova :o ,.he 7olr.t or 1sir,;lnrr:rn, �+F The COUNTY gnants all the real property noted In this Deed to the City so lone as the City utilize: the said property for public { park purposes only. ^he Clty r.r,7oos to keep th^ prnporty open to the public, provide naintenarce and a level of services equal to+h or exceeding that which was provided by the County..` The CITY will provide a development schedule or the property and the development or relocation or any facilities will be in accordance with the approved raatcr plan and any reviaiuns shall first be approved by the Board of County Commiaaicners at a public '4«• hearing. If existing facillties are subject to relocation, the replacement facility shall be constructed and made available for public use before the demolition and closing or the existing rac111ty. The CITY shall prohibit park patronz access into the Marine Resiarch area (as defined by the Board of County Commission Resolution No. R-674-69 on May 28, 1969). In the event_ the City ^' does not use the property ar a fubllc park, or conveys, or_attempts to convey'all or a portion or the property, then the property '. deeeribed herein will revert back Lo t.hc Cq:in:y or it:r .•:cceA0or:: or assigns at the option of the Co•.nty. the :•en trIctinn: ave, sub,cct to an annual review by thv Gnurst;: !{aanFcr ,,: hi: .loll[ nuu. �. THIS grant convoys only th!• intcrv.:t of t!:r. c:�.:,,ty s:rl ltn s Board of County COrrisalonos•a in Lira r-.r,ip:rty hr+•=:sr :cc IL•�cl, +rr.J t' t; shall not be deemed to warrant Lhr: Lltly ^:• to rep:c�• nL a:r;c crate .. or facts concerning the same. r Submitted into the Fluidic, record in connection with a �; 5`7�"i•i:�'``'.';i:t: ' Walter Foernan `;mot ,. •.� ,,•:;,i.pq ;,�`„•i;��;:.. .• ;.:.�, .;..•., . .' ':;fir }'.; city clerk' r " �.. • w�i1�•.'h1:1:•'. n•fi •' iL William i Houkh & C& too SOUTHEAST SECOND STREET SUITE am MIAMI, FLORIDA 33131-2146 (306) 577-M7 • FAX: (3%) 577.3674 July_11, 1995 4 Ms, Kitty Rodel EcoTropia, Inc. 828 N. W. 9th Avenue Miami, Florida 331315 Re: City of Miami Request for Proposal (RFF) Virginia Key Project Dear Kitty: You have asked that our firm evaluate the financial feasibility of your proposed project based on the preliminary projections and cost estimates which you have furnished us. Your project would appear feasible and, subject to the necessary appraisal and independent feasibility study, your project should qualify for financing in today's market. However, we have reviewed your letter to Jack Luft dated July 6, 1995 regarding the specific deed ,restrictions and we are concerned that no lender will commit to a project financing given the restrictive covenant in the existing deed, We would caution you not to incur any significant cost for an independent feasibility study and appraisal or incurred any other out-of-pocket expenses until the legality regarding the City's ability to convey the site has been clarified. It would appear reasonable for the City to include in the Request for Proposal a legal opinion that the successful bidder has complete developmental rights consistent with the terms of the Request for ]Proposal. We are of the belief that such a legal opinion will require further actions by the City, We would be happy to meet with you and the representatives of the City to discuss the "cloud" that such a deed restriction creates over the potential financing of the project. Sincerely, Submitted into the public .,6 record in connection with item 7„ on � 5 RichardWaiter l=oernan' Montalbano City Cleric Senior Vice President 95- 552 STATE, COUNTY AND MUNICIPAL BONGS 11 _r__ ___--------------_ MIAMI EG`t7Nc7MiC OCIATES, INC. June 20, 1995 Ids Kitty Roeder Submitted into the public Fco Tropica, Inc. record in connection with 828 NW 9 Avenue item 29 :A on Miami, FL 33136 Waiter Foaman Dear Kitty: City Clerk -+ As part of our research to assist you in preparing your bid for the Virginia Key Campground project, we have reviewed the appraisals that were used to establish the .financial parameters set forth in the Request for Proposal. Several concerns materialized in our minds as a result of this review as follows: 1. Two appraisals were performed which produced results radically different in their opinions of value. When such wide disparities occur, it raises serious issues regarding the validity of the appraisal process by raising questions of whether which, if either, have properly estimated value, 2. In establishing the financial parameters for bid, the RFP relics on the appraisal which set forth the higher of the two estimated values. Careful review of this appraisal raises additional concerns as follows: The appraisal relies on the sales comparison approach for estimating value, rather than the income approach contained therein which produced a considerably lower figure. The section in which the values arrived at by utilizing the two alternative approaches are reconciled (an obligation of the appraisal process) is, in our opinion, inadequate. In developing a value based on the sales comparison approach, the appraisal indicates that it was not possible to find comparable sales that pertained to properties consistent with the subject property in terms of size, Accordingly, it used values established from sales of small properties and, in essence, subdivided the subject site into small parcels that would be sold over a period of years, applying a discount rate to the revenues projected to be so realized. However, there is no evidence that such a program of subdivision would be legally possible since such use of the property may be forbidden by restrictive covenant. Further, it is unclear whether the existence of the CCL line within the property was taken into consideration. Establishing the right to develop subdivided parcels east of the line could prove to be a time consuming process (if doable at all) which would prolong the time frame of the subdivision process, thereby increasing the extent to which revenues should be discounted. 685 1 S.W. 89 TMARACM • MIAMI, FLORIDA 331615 • (305) 669-022Q 95— 552 Ecd Tropica, Inc. June 20, 1995 Submitted into the public Page 2record in connection with Item 79 A_ on Walter• Foen;,an Cily Clerk • While the general approach utilized in the sales comparison approach was described, there is no financial presentation of the analysis undeilaken, leaving questions whether costs associated with a subdivision program relating to infrastructure development, sales and marketing, general and administrative expenses, etc. were considered. There is also minimal documentation relating to the choice of discount rate. 3. Also of concern in the appraisal on which value is based is the calculation of the base and percentage lease amounts as follows: • The percentage lease is calculated utilizing information from the income method analysis contained therein which was otherwise disregarded as a basis for value, The calculation to establish the base and percentage rents contains errors which have been noted by others (based on margin notes handwritten therein). • The calculation of the percentage rent level is based on a particular development scenario that was devised by the appraiser which may or may not be ' consistent with what is actually built, If the actual development scenario produces considerably higher revenues than the appraiser's scenario is projected to, the utilization of the appraiser's recommended percentage rate could produce a windfall profit to the City over the level of return the appraiser believes justified, based purely on the developer's creativity. This suggests that the City establish a minimum overall return ( rate and allow the bidders to provide that or more however they wish to do i it rather than establishing a specific formula of base plus percentage rent as the RFP does in its current form. We recognize that the City, by Charter, is required to produce an acceptable return from private use of pub)ic land. We are not sure, however, that the Charter requires the City to establish specific react formulas to accomplish this objective. Please contact me if you have any questions regarding the above or to further discuss. Sincerely, Andrew Dolkart ( President 14M tY , •� � 1} tr �•d* t•a , .. � ;Frlt t�i J,(:.t. t`'tl 1f f�• f!'� �y.. //+�•., f C '` ! e, . r ) rt. l .t, 1 � 4 #fir}{ In �{i 1• � t ,• ys,y sl,t�..4"�:�•it' <q�, 7:• rl! alit?�.4°• ^. {�. ;t ; r i. �J It..I".• _ r.31 1 It' ' r �,i 't a.. 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