HomeMy WebLinkAboutR-95-0554RESOLUTION NO 9 O_ 554
A RESOLUTION CLARIFYING THE POLICY OF THE
CITY OF MIAMI PERTAINING TO THE SCHEDULE OF
LEASE PAYMENTS FOR CITY PROPERTY DEVELOPED
AND/OR CONVEYED AS THE RESULT OF UNIFIED
DEVELOPMENT PROCESSES, PROVIDING THAT
ALTERNATIVE SCHEDULE(S) MAY BE CONSIDERED BY
CITY DURING LEASE NEGOTIATIONS AS WELL AS
OTHER PAYMENT CONDITIONS AS HEREIN SPECIFIED,
SUBJECT TO COMPLIANCE WITH ALL APPLICABLE
CITY CHARTER AND CODE PROVISIONS AND TO FINAL
APPROVAL OF THE CITY COMMISSION, AND PROVIDED
THAT IN NO EVENT SHALL LEASE/RENTAL PAYMENTS
BE WAIVED; FURTHER DIRECTING THE CITY MANAGER
TO ISSUE AN ADDENDUM TO ALL POTENTIAL
PROPOSERS REGARDING THIS CLARIFICATION.
WHEREAS, in accordance with City Charter and Code provisions
for the Unified Development Projects (UDP), the City of Miami has
recently issued five (5) Request for Proposal (RFP) documents
calling for development of these projects: a Mega Yacht Marina
on Watson Island, the Marine Stadium on Virginia Key, a
Campground and recreational facilities also on Virginia Key, the
Virginia Key Boatyard, and a Botanical Garden Attraction on
Watson Island; and
WHEREAS, it is the recommendation of the City Attorney and
the City Manager that a clarification be provided to all current
and future potential proposers as to the City's policy on
scheduling of lease payments, in that the City shall continue to
CITY COMMISSION
MEETING OF
J U L 1 3 1995
Resolution No.
95- 554
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Jvlim,
conform with development industry practices which treat payment
schedules as an issue which may be addressed during lease
negotiations; and
WHEREAS, it is the additional recommendation of the City
Commission that during said negotiations, the City seek to
receive all monies up front and not less than 10% of annual lease
payments;
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 City of Miami's policy pertaining to the
schedule of lease payments for city property developed and/or
conveyed as the result of unified development processes shall be
clarified as follows: alternative payment schedule(s), including
deferred payments and any required interest, may be considered by
City during lease negotiations, subject to compliance with all
applicable City Charter and Code provisions and to final approval
of the City Commission, and provided that in no event shall
lease/rental payments be waived.
Section 3. The Administration of the City of Miami is
hereby directed that, during said negotiations, the City shall
seek to receive all monies up front and not less than 10% of
annual lease payments.
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95- 554
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Section 4. The City Manager is hereby authorized to
issue an addendum to all potential proposers regarding the herein
established policy for the following projects: the Watson Island
Mega Yacht Marina, the Watson Island Botanical Garden Attraction,
the Virginia Key Campground, the Miami Marine Stadium and the
Virginia Key Boatyard.
Section 5. This Resolution shall become effective
immediately upon its adoption.
PASSED AND ADOPTED this 13th day of July, 1995.
STE HEN P. CLERK, MAYOR
ATTES
WALTER J MAN
CITY CLERK
PREPARED AND APPROVED BY:
fC
L
LINDA K. KEARSON
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A. NN S, III
CITY TT Y
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CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
r� ]Honorable Mayor and Members
fit C' C 'ssion
78 C
DATE : JUL 7 1995 � FILE : d
o Ze ity ornrru Clarification of City policy
SUBJECT : on UDP Lease payment
schedules
FROM : REFERENCES '
Ces For City Commission
City ger ENCLOSURES meeting of 7/13/95
RECOMMENDATION
It is respectfully recommended that the City Commission adopt the atkached
Resolution clarifying the policy of the City of Miami pertaining to the schedule of
lease payments for City property developed and/or conveyed as result of
Unified Development Processes, providing that alternative schedule(s) may be
considered by City during lease negotiations, subject to compliance with all
applicable City Charter and Code provisions and to final approval of the City
Commission, and provided that in no event shall lease/rental payments be
waived. Further directing the City Manager to issue an addendum to all
potential proposers regarding this clarification. _
BACKGROUND
The Office of Development has five (5) current Unified Development Projects, in
the form of Request for Proposals documents, awaiting proposals from private
development concerns. The lease terms for all of these proposed projects are set
at a maximum term with a minimum base annual lease payment to the City,
based on appraised values. The administration is seeking to clarify the policy of
the City as regards the option to negotiate a schedule for the lease payments,
especially during the crucial initial years of start-up. Due to the complexity of
permitting these waterfront projects through Federal, State and County agencies
and the potential for time delays and added project costs, it is essential that
leasehold negotiations on schedules of lease payments maintain flexibility to
address these contingencies. Any deferred payments, if approved by the City
Commission in the final lease agreement, will be subject to interest payments on
the amount deferred. In no event shall any lease payments be waived nor the
fair market value of the leaseholds be reduced, this resolution will only provide
for the flexibility to provide a schedule of payments appropriate to each
development and subject to Commission approval in the final terms of the lease.
95- 554
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