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Home My WebLink AboutR-87-0383J-87-391 4/20/87 RESOLUTION NO. 137 -3831 ' A RESOLUTION AGAIN APPROVING AND AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS FOR THE ACQUISITION OF THE PARCEL OF LAND LOCATED ON NORTHWEST SECOND AVENUE AND NORTHWEST FIFTH STREET COMMONLY KNOWN AS THE "MAX BAUER PARCEL." WHEREAS, the Southeast Overtown/Park West area of the City is in need of improved parking for numerous public projects including but not limited to parking for recently constructed government buildings and the Miami Sports Arena; and WHEREAS, the herein described parcel of privately -owned property is an integral and essential part of the ongoing revitalization project in the Southeast Overtown/Park West Area; and WHEREAS, the Off -Street Parking Board (OSPB) and City Commission (City) find that the public interest would be best served by the acquisition of the Max Bauer Parcel described as: Lots 1, 2, and North 35 feet of Lot 3 in Block 65E and in Block 65N - Lots 1, 2, 3, 7, 8, 9, 10, 11 and the North 100 feet of Lots 4, 5 and 6, All in Miami North of Plat Book B, Page 41, in the Public Records of Dade County; and WHEREAS, the City Commission by Resolution 86-885 authorized the City Manager to enter into negotiations to acquire the parcel; and WHEREAS, the following terms shall now be utilized to negotiate for the acquisition of the Max Bauer Parcel: (a) Department of Off -Street Parking (DOSP) shall enter into a contract with the owner of the Max Bauer Parcel ("The Seller"). The purchase price shall be payable by the execution and delivery by DOSP to the Seller of an acceptable form of document. The document shall provide for interest not to exceed six percent (6%) per annum payable semiannually and shall be for a term of seven (7) years. The entire principal balance and all other sums due under the document shall be due and payable on the maturity date of the document. The document shall provide that DOSP may repay the principal balance, in whole or in part, without penalty. (b) The conveyance by the Seller of the Max Bauer Parcel to the DOSP shall be by general warranty deed, free and clear of all liens and encumbrances except for covenants, restrictions and easements of record. (c) Subsequent to the closing, DOSP at the expense of the City may demolish the existing buildings and may construct a surface parking lot. (d) DOSP shall construct and operate the surface parking lot. The revenues from the operation of the surface parking lot shall be disbursed in the following order: (i) to pay operating expenses of the surface parking lot, (ii) to pay the semiannual interest due on the document, and (iii) DOSP shall pay the balance of losses, if any. (e) If the parking lot revenues are insufficient to fund items delineated in (d) then, DOSP shall pay the first losses equal to two hundred thousand dollars ($200,000.00) per annum, then the City shall pay the remaining losses. (f) During the term of the document, the City shall have the right to acquire from DOSP the Max Bauer Parcel for a purchase price equal to the outstanding balance due under the document to Seller and the accumulated losses incurred by DOSP. At the maturity date of the document the City will purchase the Max Bauer Parcel; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City.Manager is hereby authorized to enter into negotiations with the Department of Off -Street Parking, Max t> .�:',�'{ Bauer and Barnett Bank for the acquisition of the parcel of land t located on Northwest Second and Northwest Fifty Street, commonly t( M r known as the Max Bauer Parcel, for a contract price to be agreed between the parties but which shall be no greater than the negotiated price of $3.3 million. PASSED AND ADOPTED this 30th day of April , 1987. VIER L. SUAREZ, OR ATTEST: TTY HIRAI. CI CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK, DEPUTY CITY ATTORNEY APPROVF0 A$ TO FORM AND CORRECTNESS . aivwcauns i, -3- To- The Honorable , Mayor. and. Members of the City Commission FROW Cesar H. Odio City Manager Recommendation oaT APR 2 21987 . - n«t •us�sert April 30th Commission Agenda Q[RffR[Nc[ACQUISITION OF MAX HAUER MEAT PLANT SITE RUCLOSURcs: It is respectfully recommended that the City Commission approve the attached Resolution again authorizing the City Manager to enter into negotiations for the acquisition of the Parcel of land located on Northwest Second Avenue and Northwest Fifth Street commonly known as the "Max.Bauer Parcel" at revised terms. Background During the past year the City of Miami Department of Development and the Department of Off -Street Parking staff have discussed and analyzed the need for acquisition of the Max Bauer parcel located at the northeast corner of Northwest Fifth Street and Northwest Second Avenue. The Off -Street Parking Board at their April llth meeting endorsed the acquisition of the property at terms delineated in the resolution. On November 13, 1986 the City Commission approved Resolution 86- 685 which authorized the Manager to enter into negotiations in conjunction with the Department of Off -Street Parking for the acquisit.Lon of the Max Bauer Parcel. The Off -Street Parking Board subsequently approved modifications to the original agreement with the City for the acquisition of the property which differs substantially in certain aspects from the original agreement. These modifications includes the requirement for the City to purchase the property at the end of the seven year balloon mortgage from the Department of Off -Street Parking, the payment by the City on an annual basis of all operating losses over $200#000 and the demolition by the City of existing structures. The Max Bauer meat packing plant has been closed for approximately two years due to relocation. Representatives of Barnett Bank approached City officials to determine if acquisition was possible. Subsequent meetings were held with the Department of Off -Street Parking to determine if a cooperative venture were possible. t `s4� � I YI V Honorable Mayor and Members 402- of the City Commission The Max Bauer parcel is strategic in terms of the Southeast Overtown/Park West and the Arena projects. The concept under discussion is that the Department of Off -Street Parking would acquire f es -simple title at the price of 3.3 million ($36 per sq. ft) the Dept's original appraisal was in the amount of $2.3 million ($26 per sq. ft) the owner appraisal was in the amount of $3.9 million ($42 per sq. ft). This acquisition is contingent upon Barnett Bank, which currently holds the mortgage, loaning the Department of Off -Street Parking sufficient funds to cover the acquisition cost. The loan would have a seven year amortization schedule at six percent interest. The Department of Off -Street Parking would construct a surface parking lot which would serve nearby government buildings during the day and be available for Arena parking at night. The Department of Off -Street Parking would agree to fund the first $200.000 annually of negative cash flow. The City of Miami would commit to accept the additional negative cash flow above the amount funded by the Department of Off -Street Parking. When the seven year balloon payment in the amount of the acquisition price is due, the City of Miami would be required to purchase the property from the Department of Off -Street Parking for that amount plus any accumulated operating losses. A feasibility study prepared by the Department denotes that the seven year cumulative loss for the Department of Off -Street Parking would be with no loss for the City of Miami. Preliminary contact with Florida A&M University has been held to discuss the potential of utilizing the site for a pharmaceutical research center. Alternate uses could be determined during the seven year period or after the City acquires the property from the Department of Off -Street Parking. The key benefit of this project is that the property will be owned by a governmental agency and the acquisition cost for the City will be held constant for seven years with very small potential out-of-pocket negative cash flow. The attached Resolution broadly defines the terms of an agreement and authorized the City Manager to enter into negotiations with the Department of Off -Street Parking, Max Bauer, and Barnett Bank to obtain the property at a price not to exceed $3.3 million. Following these negotiations a detailed report and a specific agreement will be brought to the City Commission for approval. 92- • � _ _ _ _ _ — ��Y� iYrr•��Irwn..►. 1n.+ u.�wr �w vK�w.•.n. �r�w�r�V ..rr r--.�....._... �• 1 Honorable Mayor and Members -3- of the City Commission This proposal was brought before the Off -Street Parking Board at their April meeting. The recommended purchase price of $3.3 million is based on a review of appraisals obtained by the Department of Off -Street Parking and the owner of the property. Attachments Proposed Resolution jxeqes � Hr.uHcnwwrn/tKxIO�M � �. ••gy�p MM•NMYKi.NNN•q .: L LE' M•MM.Nf..Nf)hMi�MMIN� low zs; :'"'`• •s ! .Y•+ — i FOR MORE INFORMATION. Larry E. Stauffer, P.A. 1 Droker-Yce Prosiderit _ Commurcinl Sales Vivlsloit 100 North Discoyne Uoutevard i Miami, Florida 33192 i »[xtKswrurw+rllr.akNr.; Dada: (905) 971-3592 SALE 92,750 SQUARE FEET - M14 -.- Ft=0 _ CENTER CITY MIAMI, FLORIDA 'F•� f