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HomeMy WebLinkAboutM-82-0089TO "E onf1fiClUlV Howard V. Gary GATE City Manager FRCM John Gilchrist Project Director Watson Island Development BILE February 5, 1982 Sli F?J<<:T Request to State Cabinet to Extend Time for Watson Island D. R. I. Approval Attach:.Oraft Letter to Land and Water. Adjudicatory Commission -- . a-tson island R.I. Ad] Commission Order The attached draft letter to the Governor and Cabinet sitting as the Florida Land and Water Adjudicatory Commission requests an extension to January, 1983 for the City to comply with certain conditions established in an Adjudicatory Commission Order. dated September 29, 1981 pertaining to the Watson Island Development of Regional Impact. Background The development of a themed amusement park and marine oriented recreational facilities on city owned Watson Island has been a goal ofthe City Commission since 1976. Preliminary planning, feasibility and financing strategies have been refined. Many legal, political and regulatory issues have been favorably resolved over the last three years including issues before the Florida Cabinet and the Courts of Florida. The City entered into an agreement with Diplomat World Enterprises, Ltd. in November 1977, to provide professional services for the development and management of a major recreational and entertainment center. The project includes a themed amusement park; a specialty shopping center with 50,000 square feet of restaurant facilities and 40,000 square feet shopping; performing arts facilities including a 500 seat IMAX and multi -purpose theater, a 1000 seat covered outdoor theater, a 6000 seat bayside amphitheater for aquatic shows and stage performances and a television production studio; 350 slip visitor and recreational marina including a waterborne transportation terminal; and parking for'3000 autos plus 75 tour buses. Existing facilities to be retained or relocated on Watson Island include Chalk's amphibious airline terminal, the Miami Yacht Club, the Miami Outboard Club, the City's heliport and the City's Japanese Gardens. q� I� 82 89 Howard V. Gary Page 2 February 5, 1982 Benefits to the City and community include a projected $20,000,000 plus net return to the City during the first 5 years of operation and increasing thereafter, 1700 man years of construction jobs during the 2 year construction period, 1000 full time equivalent permanent jobs, a large percentage of which are first -entry jobs, annual purchase of $6-8,000,000 in food, merchandise and other supplies and services and an estimated increase in tourist visitor days of 335,000 as a direct result of the attraction. It is estimated that an additional 4000 to 5000 service industry jobs could be created as a result of the Watson Island Project. In July 1979 the City Commission approved a bond indenture and in September 1979 a $55 million revenue bond issue was validated in the Eleventh Judicial Court of Florida. In June 1979, Dr. Philip Glatstein, Lynn Glatstein, Leonard Turkel and Annsheila Turkel filed suit against the City and Diplomat alleging six counts covering bidding procedures, illegality of the agreement, illegality of the development and environmental degradation. Their suit for declaratory injunctive relief was denied by summary judgement against all counts by Judge Ira L. Dubitsky in the Dade County Circuit Court. The summary judgement was subsequently appealed to the Third District Court of Appeal by the Glatsteins and Turkels and on May 26, 1981, the Court found that the Agreement was executed contrary to the City charter, which requires invitations for competitive bidding to be executed according to detail plans. This finding being diapositive, the Court did not address any other contention of the appellants. The original contract and the subsequent amended contract were therefore voided. The City and Diplomat then requested a rehearing by the Third District Court of Appeal, as allowed_within thirty days of their opinion, and the request was denied. On August 5, 1981, the City and Diplomat petitioned the Supreme Court of Florida to review the Third District opinion. The petition was denied by the Court on November 17, 1981. The Supreme Court denial exhausted the City's potential remedy through judicial process:._ There also remains one regulatory agency issue to be met by the City. On July 10, 1980, the City issued a development order for the Watson Island project, which was subsequently appealed by the South Florida Regional Planning Council. Administrative resolution of this issue went before the Florida Cabinet acting as the Land and Water Adjudicatory Commission in September 1981. The Cabinet allowed the City's development order to stand, however requested several conditions to be met and returned to the Cabinet by March 3, 1981. 82-89 All� U Howard V. Gary Page 3 February 5, 1982 While it has been possible to move forward with compliance on the issues raised in the conditions regarding dredge and fill, potential conflict with the future expansion of the Port of Miami and issues of traffic and transportation, the impact of the Third District Court ruling plus a subsequent ruling on a second management agreement between the City and a private firm for the management of City owned marinas has made it impossible to respond to the Adjudicatory Commission's condition regarding the projects fiscal impact on the City within the time frame established by the Adjudicatory Commission Order. Condition (4) The City shall contract with an independent firm acceptable to the Commission and the Department of Veteran and Community Affairs, to prepare a new economic feasibility report for the Watson Island Project which (1) assesses the effects of any possible changes to the management contract; (2) analyzes the City's revenue base and its expenditures plan and (3) specifically identifies revenue sources or proposed expenditures that must be altered to insure the economic viability of the City in the event that the Watson Island Project is an unsuccessful venture. The City has now begun a process to redefine procurement procedures within the courts interpretation of legislative and charter definition. The City will require several months to replace City Ordinances regarding the process and to reissue a request for bids under revised procurement procedures and to again have a management service in place for the Watson Island Project. It is therefore requested that the City Commission authorize the City Manager, by submission of the attached draft letter to the Governor and Cabinet,proceed to petition the Florida Land and Water Adjudicatory Commission for an extension of time in order to comply with conditions set forth in the Adjudicatory Commission Order pertaining to the Watson Island Development of Regional Impact. 82-89