HomeMy WebLinkAboutM-87-02154 �=EjtY OF MIAMI. FLORIDA 28
INTEi4.OFFICE MEMORANDUM
6'i F E G t 3 r;, 4: 23
TO Mr. Cesar Odi DATE: February 18, 1987 FILE:
City Manager
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A FROM: ler+ J. Dawkins
City Commissioner
SUBJECT AGENDA ITEM/FEB. 26, 1987
COMMISSION MEETING
REFERENCES:
ENCLOSURES: 3
Please schedule the following item in the February 18, 1987,
Commission meeting agenda:
Discussion Item
The Borinquen Health Care Center Inc.,
located at 3601 Federal Hwy. to discuss
parking for a Health Care services to
the underprivileged
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cc: A.E. Perez-Lugones
Attachments
RD7r/DAl
87-215•
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TO: Honorable Chairman and Members of
of the Off -Street Parking Board
FROM: Roger M n
Directo 1
Departm41 - tir et arking
tt
Background
AGENDA ITEM NO. 12
DATE: February 3, 1987
SUBJECT: MUNICIPAL LOT NO. 56
(DESIGN PLAZA): SALE OF
MILTON KLEIN PROPERTY
During the April 6, 1984 Board meeting an agreement with Milton Klein for
long term leasing of Municipal Lot No. 56 (89 spaces) was approved
(Exhibit 1). The Board approved the lease based upon underutilization of the
site and the community development purposes of allowing of Mr. Klein to build
in a deteriorated area. The surface lot is located on a site underneath an
expressway on a parcel leased from the State of Florida Department of
Transportation.
During construction Mr. Klein experienced financial difficulty and the
building was not completed. The lease allowed the Department to purchase the
building for the remaining mortgage balance which the Department declined.
Based on this action, the Department will no longer receive a 15 percent
equity payment on the profits of the sale, if any, or retain authority to
approve the transfer of the property. Flagler Federal Savings and Loan has
continued to make the lease payments.
Current Situation
A meeting was held on February 2, 1987 with Emilio Lopez, Executive Director
of Bo rinquen Health Care Center Inc. which is a clinic serving predominantly
low income citizens. Mr. Lopez is nearing completion of complex negotiations
with Flagler Federal Savings, Metropolitan Dade County, the State of Florida
and the U.S. Government to acquire the building. It is his request that the
Department donate the lot and transfer the remaining 28 years of the lease
with the State of Florida to his agency. Mr. Lopez is of the opinion that
his request should be considered the "City of Miami's contribution to the
project."
Substantial effort was expended by staff to explain that the Department is a
proprietary fund and is restricted under both the City of Miami Charter and
the Trust Indenture from donating the leasehold rights or the parking
facility. The following alternatives were suggested for review by the Board
of the Borinquen Health Care Center Inc.:
o The Department would lease employee parking in bulk in the price
range of approximately $10-15 per month and would install parking
meters in the range of 15 to 25 cents per hour for clinic patrons.
This would allow the lot to serve clinic purposes without requiring
any cash payment or transfer of the lease.
87--2 Z 5.
o The clinic could increase its mortgage on the building in the amount
of $213,191 which includes $101,159 representing the unamortized
construction balance and $112,032 representing the net present value
of the projected income stream from the lot over the balance of the
Department's lease with the State of Florida. The Off —Street
Parking Board would have the option of negotiating the future income
stream payment as a "contribution" to the project if desired.
o Borinquen Clinic could accept the terms of the Milton Klein lease
and pay the Department.the $1,335 monthly fee which would allow the
clinic to establish their own parking policy in terms of patrons and
employees.
Conclusion
This situation is extremely complex in that the financial interests of the
Department must be protected while demonstrating a responsiveness to a non-
profit agency which maintains an extremely high profile in the community.
Based upon the above alternatives, it is recommended that the Executive
Director be granted authority to negotiate an arrangement which is reasonable
in relation to the complex nature of the situation. It is further
recommended that a member of the Off —Street Parking Board be designated to
work with the Director in this effort.
Exhibit: 1
87-21!i
0
D: Honorable Chairman and Members
of the Off -Street Parking Board
ROM: Roger M. a on
Director
Department
Recommendation
EXHIBIT 1
DATE: March 28, 1984
SUBJECT: APPROVAL OF LEASE WITH
MILTON KLEIN
It is recommended that a sublease agreement with Milton Klein for development
of Municipal Lot No. 55 be approved in substantial form.
Background
Approximately one year ago the Department was approached by Milton Klein to
develop a parking facility under I-195 between Old Dixe Highway and US -I.
The Department leased the site with the State of Florida approximately ten
years ago but did not develop the site due to the lack of demand. Mr. Klein
has acquired the site immediately south of the I-195 and is in the design
phase of -a new office building.
The site under design by Mr. Klein would allow a four story building under
the existing code. With off -site parking the building could be increased to
seven stories. Due to the magnitude of the project and the requirements of
the Department to invest approximately $75,000, it was determined to seek
help from Fine, Jacobson, Block, Klein, Colan and Simon to develop a lease
which could become a model for future equity participation projects.
Analysis
The proposed sublease agreement will be in effect through the balance of the
Department's lease with the State of Florida. The rental payment will be $15
per month per space which is estimated to amortize the Department's
investment within approximately eight years. The lease is not exclusive in
that the Department is able to rent 25 percent of the capacity of the lot to
the general public, should an analysis of utilization determine that space is
available. Mr. Klein has granted a 15 percent equity participation in his
building to the Department. The equity participation is based upon the net
proceeds of the sale or transfer of the property. The Department will be
responsible for maintaining the facility as well as enforcing parking
regulations.
Att.
87-21`,i