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Home My WebLink AboutR-86-0885J86-862 10/29/86 RESOLUTION NO. 196�513"] A RESOLUTION /APPROVING AND AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS FOR THE ACQUISITION OF THE PARCFI. OF LTV;1D LOCATED ON NORTHWEST SECOND AVEV-IJE 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 t--o 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; a nd 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 - Lot s 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 following terms shall 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 monthly and shall be for a term of seven (7) years. The entire principal balance and all other sums d»e 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, Crff COMMISSION without penalty. MEETING OF -1- NOV 13 t6 ESWM N& (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 convenant.s, restrictions and easements of record. (c) Subsequent to the closing, DOSP at its expense may demolish the existing buildings and may construct a surface parking lot. (d) DOSP shall 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 monthly 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 equal to one hundred thousand dollars ($100,000.00) per annum, with DOSP paying the balance of losses, if any. (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. If by the maturity date of the document the City elects not to purchase the Max Bauer Parcel, the OSPB shall determine the use of the 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 Bauer and Barnett: Bank for the acquisition of the parcel of land located on Northwest Second and Northwest Fifth Street, commonly known as the Max Bauer Parcel, for a contract price to be agreed -2- between the parties but which shall be no greater than the appraised price as set forth in that certain appraisal dated April 2, 1986, prepared by Edward M. Waronker, MAI, ASA, SREA or an updated appraisal obtained by the Department of Off -Street Parking (DOSP) . PASSED AND ADOPTED this 13th day of November , 1986. ATTEST: e MAT Y HIRAI, CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY APPROVED AS .`O /FORM AND CORRECTNESS: MAYOR ir. Keqes __- h2F r<E VF4Cpq rtvinFl�ird7S FOR SA 2;750 SQUARE FEET T = '•L i.r- 3lr�l N i;� � .s. y' " ,1.:_ •.,. K 1 �POR7� 'r � u � W �+.� .._'r - - — c+ _� y I n f `�I n - � � 'V .�� Z •:.�.. •` i`}��j �� 3 ''i�:�x :;,�j; 3, k ��AEN�'� CS +^'�+ � �+-.. �—.�._..�' �' _. _�— y� i �_ x _.- 2 ` ..r'..1u,4. +. r I;; t i° ;j'� .. r� ��y�� f '"►bra f' 't� � _ _. ""JIiFi 3�7 14+1 � +H.+"+*+}. ,+ y�,t -: •. ,�, r-. f Q� .1 i'*,.,3 j" 2- - !'fr*r v it r ' / : .d� t4T { { ,%, . �. - ;i • ..�,• METAOAAIL r ——1----t=j '— •�OL� a �"s - � �yl`.M ^?'°��.�— .:(:S't{'-�a'}^+t�'� _a�'._.. � , I h " O. �'�/ �O3 LLdd 0 i7C :,' Lfs �Ed2 •',,•r� _ 11� �4t�'/•/- Y?t_;`7 �; w>y.�1w{ ia'�i ".' r,..i ,. �. a aEG�nct,~ Uq��tT "2 ��R/;t ?`G�r�;ir �� ,��,�}•tl4s ; '•�'�+I� AN ' {{ Urej ( ».. �E,• .ttir/, f �.,j.h _ , �,.. .; "'";��i 'K T-„�'?�r!�.iy. ,"S�� f:^-� {`sr;),�"?.`t„J�: r• r/''r� {per �� -�� `-' l i � ! '� j . �; r (x• if.... M "'' "6e' ,y�},,, � J :� ..: `�1, !'e(� .ra! � •�"'�v1N"'��ii f,! 'lri.. i.� ,�1, �i�•.�J�.,jjj� . �j ICE � � . �.- � r ci'`I: i- .�•�, 9 anA � a•[lv' .�;` I"'""�._� .,.fi• ` _ ' - •gyp -- - � � r' _ l- - �- r ..i:�•Ej��.:�•--^� -,, .'rr. �„r- _ G(ssoCtfY'T- PARK i•�—=ems �i • /: r t / '�.=--II J 1 � � �-_ ' �' _' -- — C_J -- � - -- �� -- r � L FOR f,7C RE INFOR&7ATION; _._ — ---- — — Larry E. Si, itler, P.A. ,•. ' Broker -Vice President r 3 Commercial Sales Ulvisioll 3 CENTER CITY 100 "Orih Disceyrre Boulevard > > 111t r,C1'tSC MdP%ANvlsU ElMOV. Mialnl, Florida 33132 MIAMI, FLORIDA A ----- -_-___ _. Dade: (305) 371-3592 ' .. .r .r .. .. ... .. r........... ...... .. v.Arb�val v.••Ir,rnd nMirw—^ '.i~—.-_-_._.�-_- LP. E CITY OF MIAMI, FLORIDA INTEROFFICE MEMORANDUM \To. The Honorable Mayor and Members of DATE: e� FILE: the City Commission NOV SUBJECT; ACQUISITION OF MAX BAUER MEAT PLANT SITE FROM: REFERENCES: Cesar H. Odio City Manager ENCLOSURES Recommendation It is respectfully recommended that the City Commission approve the attached Resolution 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". 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 Max Bauer meat packing plant has been closed for approximately eighteen months 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. 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 fee -simple title at the appraised price. Barnett Bank would loan 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. Honorable Mayor and Members of --Z- the City Commission The Department of Of f@-St.reet Parking would agree to fund the first $200,000 annually of negative cash flow. The City of Miami would commit. to accept the second $100,000 annually of negative cash flow above the amount. Funded by the Department of Off -Street Parking. Any negative cash flow above the combined $300,000 annually would be paid by the Department. of Off.. -Street ParY,inq when the seven year balloon, payment in the amount of the acquisition price is due, the City of Miami, would have the option to purchase the property from the Depart -rent. of Off -Street Parking for chat 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 $760,000 with no loss for the City of AAia.mi. If the property remains in parking for eleven years, all, operational losses will be recovered. 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 Parkina. The Key benefit of this project is that the property will be awned by a governmental agency and the acquisition of 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 authorizes the City Manager to enter into negotiations with the Department of Off -Street Parking, Max Bauer, and Barnett Bank to obtain the property. Following these negotiations a detailed report and a specific agreement will be brought to the City Commission for review. This proposal will be brought before the Off -Street Parking Authority at their November meeting. Pending their concurrence we would initiate negotiations. An updated appraisal is being obtained by the Department of Off -Street Parking. Attachments Proposed Resolution 0