HomeMy WebLinkAboutM-94-0263CITY OF MIAW FLORIDA
INTER -OFFICE MEMORANDUM 22
TO: Honorable Mayor and Members
of the City Commission
FROM
Ces io
Cit age
DATE 31 M FILE
Discussion Item for
SUBJECT April 14, 1994
City Commission Agenda
REFERENCES:
ENCLOSURES'
Discussion concerning Rickenbacker Marina, Inc.'s proposal to
surrender its remaining 15-year lease term subject to a buy-out
condition. Please see attached letter to Rickenbacker Marina,
Inc. dated January 28, 1994.
P,�-
94- 263
TIN laf tarl,c C
EDUARDO RODRIGUEZ
Director
Mr. Ram B. Melwani
President
Rickenbacker Marina, Inc.
3301 Rickenbacker Causeway
Key Biscayne, F1. 33149
Dear Mr. Melwani:
CESAR W. ODIO
City Manager
January 28, 1994
This letter serves to respond to your letters of October 4,
1993; December 27, 1993; and January 14, 1994. In these
letters you have raised two potentially conflicting issues.
First, you requested that the City of Miami accept a surrender of
the remaining 15-year lease term subject to a buy-out condition
of the remaining value of your lease and that we issue a new RFP
(for a 30-year lease) allowing you the possibility of re -bidding
in order to facilitate a 30-year amortization of proposed
"substantial improvements". Next you requested that the City
consent to several sublease operations. As these two issues are
interrelated, so is the response.
The surrender and the issuance of a RFP is an issue which
must be determined by the City Commission. Accordingly, a
discussion item is being contemplated for the City Commission
agenda of February 17, 1994. If the City Commission wishes to
entertain your offer, we will seek authorization to procure two
appraisals of the fair market value of the remaining 15-year
lease term, and authorization to prepare a study of the economic
feasibility for a future proposer to compensate Rickenbacker
Marina, Inc. for the remaining 15 years of its lease plus
financing substantial improvements on the property within a new
reasonable lease term. The feasibility study will determine if
new proposers will be afforded a fair and reasonable opportunity
to compete for new development and lease rights as is outlined in
the City Code and Charter. Ultimately, the scope of the
improvements, the boundaries and the new lease term for the
proposed RFP would be subject to determination by the City
commission.
Next, under the present circumstances where the City is
contemplating the surrender of Rickenbacker I s leasehold and the
issuance of a RFP, it is unreasonable for the City to approve
your proposed subleases due to the potential excessive economic
burden that would be imposed upon future proposed developers
other than Rickenbacker. Furthermore, your request for approval
of these subleases was submitted after your October 4, 1993
94- 263
3
OFFICE OF ASSET MANAGEMENT & CAPITAL IMPROVEMENTS
Mr. Ram B. Melwani
Rickenbacker Marina, Inc.
Page 2
proposal to surrender your leasehold contingent upon the buy-out
condition and the issuance of a new RFP. In view of this, the
City Attorney has cautioned us that if Rickenbacker Marina, Inc.
has subleased any portion of its leasehold to a third party and
said sublease is not specifically subject to an agreement to
surrender, a new RFP can only include that portion of the
property unencumbered by the subleases. Therefore, we trust that
it is abundantly clear that it is inappropriate and unreasonable
for the City to approve the subleases as presented at this time.
Sincerely,
4 r o Rodri ez
Director
i�94
cc: Linda K. Rearson, Assistant City Attorney
Herbert J. Bailey, Assistant City Manager
Jack Luft, Development Coordinator
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