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HomeMy WebLinkAboutR-85-0923J-85-827 (9-12-85) RESOLUTION NO.85-923 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE NEGOTIATED AGREEMENT, IN THE FORM ATTACHED HERETO, BETWEEN THE CITY OF MIAMI AND THE BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA FOR THE RELEASE OF DEED RESTRICTIONS ON CERTAIN LANDS ADJACENT TO BAYFRONT PARK WITHIN THE BAYSIDE SPECIALTY CENTER LEASED AREA MORE PARTICULARLY DESCRIBED HEREIN; AND FOR THE ESTABLISHMENT OF A TRUST FUND TO BE FUNDED FROM 7.4% OF THE RENTAL INCOME RECEIVED BY THE CITY FROM THE BAYSIDE RETAIL PARCEL LEASE FOR THE ACQUISITION AND IMPROVEMENT OF BAYFRONT AND RIVERFRONT LANDS WITHIN THE CITY OF MIAMI. WHEREAS, the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida (the "Trustees") conveyed to the City of Miami certain lands adjacent to Bayfront Park as described in Deed No. 19447, recorded in Deed Book 3130, at Page q 257, in the Public Records of Dade County; and WHEREAS, the above described deed contains certain restrictions regarding the use and development of such lands ("Deed Restrictions"); and WHEREAS, a portion of the above described lands is included within an area that the City has leased to Bayside Center Limited Partnership ("Bayside'l) for the development of the Bayside Specialty Center; and WHEREAS, Bayside has requested that the City obtain a release from the Deed Restrictions; and WHEREAS, the Florida Board of Trustees find that increased public access and enjoyment of Bayfront and Riverfront lands is desirable and, together with the City, desires to establish a mechanism to enhance public access to City waterfront lands; and WHEREAS, the proposed agreement attached hereto between the City and the Trustees releases the property adjacent to Bayfront Park within the Bayside Specialty Center leased area from the Deed Restrictions; and 8�--923 CITY COMMISSION MEETING OF r Lj WHEREAS, the term of the release of the Deed Restrictions would coincide with the term and renewal options of. the Lease Agreement; and WHEREAS, the proposed agreement requires that the City establish a Trust Fund to he funded from 7.4 of the rental income c-ec(-ived by the City from the Lease Aqreement for the acquisition and improvement of BayCr.ont and Riverfr.ont lands within the City of Miami as identified by a priority list to be developed by the City and approved by the Tr_ us te-,�.; ; and WHEREAS, the proposed agreement also provides that the highest priority for acquisition shall be the Barnacle Addition in Coconut Grove, a.k.a. Commodore Bay Tract: NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSTON OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Commission hereby authorizes the City Manager to execute the Aqreement and Release of Deed Restrictions and Reverter, in substantially the Form attached hereto, between the City ')f. Miami and the Beard of Trustees of the Internal. Tmprovement Trust Fund of the State of Florida to provide for the release of the Deed Restrictions and for the establishment of a Trust Fund, to be funded from 7.4% of the rental income received by the City from Bayside pursuant to the Lease Agreement, for the acquisition and improvement of Bayfront and Riverfront lands within the City of Miami. PASSED AND ADOPTED this 12th day of. SEPTEMBER 1985. City Clerk PREPARED AND APPROVED BY: G. MIRIAM MAER Assistant City Attorney MAURICE A. FERRE MAURICE A. FERRE, Mayor -2- �kj 923 f. T APPROVED FORM AND CORRECTNESS: LUCIA A. DO HERTY City Attorney GMM/wpc/ab/B093 -3- 95 --923 AGRM MENT AM RELMZ O! DE® RESTRICTIONS AND REVERTER AGREEMENT made and entered into this day of August, 1945, by and between the BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA ("TRUSTEES") and the CITY OF MIAMI, a municipal corporation of _ the State of Florida ("CITY"); WHEREAS, the TRUSTEES conveyed to the CITY certain lands adjacent to B ayfront Park as more particularly described in Deed No. 19447, recorded in Deed Book 3130, at Page 257, in the Public Records of Dade County; and WHEREAS, the above described deed contains certain restrictions, as set forth herein, regarding the use and development of such lands; and WHEREAS, a portion of the above described lands is included within an area that the CITY has leased for the development of a waterfront specialty center to be known as Bayside Specialty Center; and WHEREAS, the CITY wishes the property described in Exhibit A attached hereto and made a part hereof to be released from the aforementioned deed restrictions; and WHEREAS, the TRUSTEES find that increased public access and enjoyment of Biscayne Bay and the Miami River is desirable; and WHEREAS, the TRUSTEES and the CITY desire to establish a mechanism to enhance public access to CITY waterways, NOW THEREFORE, the parties in consideration of the mutual promises and covenants contained herein, agree as follows. 1. The TRUSTEES hereby release the property which is described in Exhibit A attached hereto and made a part hereof from the following restrictions and reverters set forth in that certain Deed from the TRUSTEES in favor of the CITY OF MIAMI, dated February 24, 1947 and recorded in Deed Book 3130, Page 257, of the Public Records of Dade County, Florida, to wit: PROVIDED, HOWEVER, anything herein to the contrary not- withstanding, this deed is given and granted upon the express condition subsequent that the Grantee herein or its successors and assigns shall never sell or convey or lease the above described land or any part thereof to any private person, firm or corporation for any private use or purpose, ' it being the intention of this restriction that the said lands shall be used solely for public purposes, including municipal purposes and not otherwise. PROVIDED, HOWEVER, anything herein to the contrary not- withstanding, this deed is given and granted upon the further express condition subsequent that the Grantee herein or its successors or assigns shall not give or grant any license or permit to any private person, firm or corporation �5-912 to construct')r make by any means, any islan(_ , fill, embankments, structures, buildings or other similar things within or upon the above described lands or any part thereof for any private use or purpose, as distinguished from any i public or municipal use or purpose. It is covenanted and agreed that the above conditions subsequent shall run with the land and any violation thereof shall render this deed null and void and the above described lands shall, in such event, revert to the Grantors or their successors. The term of this release of restrictions and reverter shall coincide with - the original term and the renewal options contained in that cent a.L., lease bet- ween the CITY and Bayside Center Limited Partnership, dated January 14, 1985 (hereinafter referred to as "Retail Parcel Lease") together with all replace- ments, substitutions, renewals, modifications and a>:tensions thereof, a copy of which is on file at the Office of the city Clerk. 2. The CITY shall forthwith establish the Biscayne Bay/Miami River Land Acquisition Trust Fund ("TRUST FUND") as an ongoing source of funds to purchase real property adjacent to the Miami River and Biscayre Bay in order to provide public access to and public enjoyment of those waterbodies. 3. The Trust Fund shall be funded from a portion of rents received by the CITY pursuant to the Retail Parcel Lease. Annually, the CITY shall pay into the Trust Fund 17.3 of "Rental" as defined in Section 2.5 of the F.etai. Par,, -el Lease, such annual payments to begin upor. t'.e first anniversary cf the rent com- mencement date. 4. The CITY shall develop a pri.ority list of proposed acquisitions of lands within the corporate limits of the CITY adjacent to Biscayne Bay or the Miami River. The purpose of the priority list is to identify lands suitable for public enjoyment and recreation and preserve for all time public access to CITY waterways. The priority list of proposed acquisition shall be subject to TRUSTEE approval with the first acquisitions to be the Barnacle Addition in Coconut Grove commonly referred to as the "Commodore Bay Tract." 5. Monies from the Trust Fw>d shall be expended only for actual costs of acquiring projects on the priority list and improvements on lands so acquired. Improvements shall include the following: shoreline enhancement, landscaping, erosion control, boardwalk and ancillary park furniture, fishing piers and docks and conservation measures. 6. The CITY and the TRUSTEES covenant that none of the revenues generated pursuant to paragraph (3) above shall supplant any or all funds budgeted or to be budgeted by the CITY or the STATE for acquisition and maintenance of parks and recreational projects within the CITY. 95-912 7. In the event the CITY refuses or fails to perfuL any agreement or covenant contained herein, the release of restrictions and reverter contained in paragraph one of this agreement shall not terminate but s3ha11 remain in full force and effect and the remedies of the TRUSTEES shall be to enforce the provi- sions of this agreement against the City by proceedings at law or in equity by way of specific performance, mandamus, injunction or otherwise as may be appropriate. IN WITNESS WHEREOF, the BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA and the CITY OF MIAMI have hereunto subscribed their hands and affixed their seals on the day and year first hereinabove writ- ten. Gove rn o r Secretary of State Attorney General ' Comptroller Treasurer Commissioner of Education Commissioner of Agriculture Executive Director of the Department of Natural Resources The City of Miami, a municipal corporation of the State of Florida ATTEST: BY: Ralph C. Ongie, City Clerk Sergio Pereira APPROVED AS TO FORM AND CORRECTNESS: Lucia Allen Dougherty, City Attorney l� O CITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM 'i TO, Sergio Pereira DATE- Sept. 12, 1985 nLE.460.01 City Manager SUBJECT Waiver of Deed Restrictions/Bayside John E. Gilchrist 9 e-4- FROM Asst. to the City Manageer REFERENCES Special projects ENCLOSURES 3 The attached describes additional ways of calculating a percentage of rental payments from Bayside to be set aside for the acquisition and improvement of Bayfront and Riverfront lands. The agreement, already approved by the Trustees, based the calculation of 17.8% on land area. The two alternatives here submitted are based on revenues generated. Attached is an amended version of the Waiver to be substituted on agenda item #60. u 1,li/ III .LIlk 6 i-9i� - V A� l 1 4 85^90(4L, �i SQUARE FOOTAGE OF CENTER RENTAL EXTRA CHARGES TOTAL REVENUE Entire Center 235,000 $10,824,100 $7,52►,'i00 $18,348,800 Area Encompassed' by Gay Bottom Lands Bleed Hestrictions Reflections 3:,0J0 700,000 -0- Pier P:ark Rest 15,000 300,000 -0- M.G.M. Store 2,000 80,000 6r1,040 Marina Retail 2,000 80, 000 64 0110 Other Retail 11000 '10, 000 3<'1 020 -(, 55,000 T T , 200, 000 1 100 $ 1 , 3609 100 Percentage of Total Revenues Attributed to Peed Restrictions Area Calc:ulal.ed on rental fees: $ 1,2,00,;)00 10,824, 100 = 11% Calculated on total revenues: %1, 60, 100 18,348,800 = 7.4% r Based cn Minimum Rental Payments of $1,000,000 per Year for 45 Years: Percentage applicable to Deed Restrictions Area: at 17, 8% = $178 , 000/year x 45 = $8 2 01 0, 000 at 11% = $110,000/year x 45 = $4,9501000 a;. ?.4N = $ 74�000/year x 45 = $3p330,000 Note #1) Rent for Reflections, Pier Park Restaurant and M.G.M. store is based on a percentage of gross sales and not a minimum rent. t Rent on retail space is based on a proforma projection of a minimum rent of $40.17 and an average rent of $5.99 per 3 square foot ( page 67 of proposal) . Note #2) Extra charges are for common facilities, taxes, H.V. A.C. light and power, trash removal, etc. maid by tenants to lar�diard. Reflections and Pier Restaurant include these charges in N rent payment . September 12, 1735 I 1 INTER -OFFICE MEMt?RnNDUM 60 TO Honorable Mayor and September 5, 1985 BY.460.01 Members of the City Commission Bayside/Waiver of Deed Restrictions Sergio Pereira �" �' For City Commission Meeting City Manager _- of September 12, 1985 Resolution, Waiver It is recommended that the City Commission adopt the attached Resolution authorizing the City Mana er to execute the ne otiated greement in le -form attached hereto between the City and the Florida Board of Trustees for the release of deed restrictions on certain lands within the Bayside Specialty Center leased area, and for the establishment o a Trust Pund to be establishea from 17.8% oT the rental income received by the City from the Bayside Retail Parcel Lease for the acquisition and improvements of Bayfront and River rout lands within the City of Miami. The City Commission adopted Resolution No. 85-578 on June 13, 1985, requesting the Florida Board of Trustees to waive Deed restrictions on Bay Bottom lands deeded to the City from the State on 1949 which include a part of the upland area leased to the Bayside Center Limited Partnership for Bayside. The City's request for the waiver was placed on the Trustee's Agenda for August 20, 1985 with the State Department of Natural Resources recommendation of approval, providing however that 35% of net revenues received by the City from Bayside be placed in a Trust, as compensation for the waiver, for the acquisition of waterfront lands. Through negotiations, it was resolved that 17.8% of the rental income from the Bayside Retail Parcel would be acceptable to the Board of Trustees, pending the City Commission's review and approval. It was determined that the percentage of land on which the deed restriction applied was 17.8% of the entire leased area. The Waiver Agreement requires the City to establish a Trust Fund from 17.8% of the rental income derived from the Bayside Retail Parcel for the acquisition and improvement of Bayfront and Riverfront lands within the City of Miami. The City is to develop a program for acquisition to be approved by the Trustees. 17.8% of the rental based on the minimum annual guaranteed rent would amount to $7,520,500, based on the following schedule: Guaranteed rent years 1-2 $350,000/annually at 17.8% _ $ 1159700 " It years 3-6 $650,000/annually at 17.8% = 462,800 years 7-45 $1,000,000/annually at 17.8% = 61942,000 $ 7,520,500 When considering the potential rent based on projections from Rouse, including 35% of net, the 17.8% could over 45 years amount to as high as $90,000,000. It is requested that the attached Resolution be adopted authorizing the City Manager to execute the negotiated Agreement in the form attached hereto between the City and the Florida Board of Trustees for the release of deed restrictions on certain lands leased for Bayside, and further for the establishment of a Trust Fund funded from 17.8% of the rental income received from the Bayside Retail Parcel lease for the acquisition and improvement of Bayfront and Riverfront lands within the City of Miami. SP/JEG/bf S5--921?