HomeMy WebLinkAboutItem #66 - Discussion ItemTO: Honorable Mayor and
Members of the City
Commission
FROM: Cesar H. Odjo
City Manager 0
CITY OF MIAM1. FLORIOA
INTER -OFFICE MEMORANDUM 47
DAM MAR 12 1
FILL:
SUSPECT: Establishing Policy for
Negotiated Purchases and
Business Relocation for
Little Havana Police
REFERENCES: Substation
ENCLOSURES:
A resolution establishing City
policy for negotiated purchases to
provide a bonus to property owners;
and for business relocation, to
expedite public acquisition of 13
lots and the improvements thereon
for the Little Havana Police
Substation (said property legally
described as Lots 4 through 16, all
in Kenilworth Revised Subdivision,
as recorded in Plat Book 5 at page
115; bounded on the North by West
Flagler Street; West by SW 23
Avenue; South by SW 1 Street; East
by Beacom Boulevard a/k/a SW 22
Avenue Road).
Emergency Ordinance No. 9803 passed by the City Commission on
February 9, 1984, provides for the establishment of a full
service police substation in the Little Havana area.
Furthermore, the site for the Little Havana Police Substation was
-designated by the City Commission by Motions 85-684 and 85-846,
passed respectively at Commission meetings held June 20, and July
*�.,,_• 25, 1985. Funds for the Little Havana Police Substation site are
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1 provided from 1984 Miami Police Headquarters and Crime Prevention
Facilities Bonds.
The Little Havana Police Substation project entails the public
acquisition of land. The public acquisition of this site
includes 13 lots owned by six different property owners, two
owner -occupants, 12 Lessees or Sub -lessees -all commercial
operations, and three billboards.
In 1977, the City established a City-wide procedure for the
purchase of real estate in lieu of condemnation (resolution 77-
73) which included the provision of bonus incentives for
negotiated settlement. Bonuses over the appraised value were
�iSCUSS IDIU
Honorable Mayor and Little Havana Police
Members of the City Substation
Commission Page 2
authorized in the following manner: 10% on the first $10,000; 5%
on any amount between $10,000 and $500,000; and 3% on any amount
between $500,000 and $1,000,000. The City has utilized this
procedure for real estate acquisition since 1977.
The City of Miami does not have a City-wide relocation policy for
businesses displayed through public acquisition.
Given the urgency of implementing the Little Havana Police
Substation project, and recognizing that complex public
_-
acquisition must be undertaken by the City, it would be most
.,.,..
beneficial to the City to be able to conclude negotiated
settlements with the property owners by purchasing their property
fee simple, in lieu of condemnation, and provide business
relocation assistance.
:i
In condemnation proceedings, it has been the experience of Dade
County that acquisition costs escalate 25% to 35% above the
appraised value to the public body. Florida law requires that
the public body pay all legal expenses incurred by the property
owner. These can be substantial in condemnation proceedings.
Recommendation
The Property & Lease Management Division of General Services
Administration recommends:
1. That the existing procedure established by Resolution
77-73 be modified, exclusively for the Little Havana Police
Substation public acquisition, to increase the bonus to property
owners within the Little Havana Police Substation site, who
negotiate a settlement for the City to purchase their property
fee simple in lieu of condemnation, up to but not to exceed 10%
over the highest appraised value.
2. That the City provide business relocation assistance
following the guidelines of the Federal Uniform Relocation
Standards, exclusively for the Little Havana Police Substation
Public Acquisition, which delineate procedures and remuneration
of businesses displaced by Public Acquisition.
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