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HomeMy WebLinkAboutItem #27.2 - Discussion Item.. -- _ lw�na��e arms f Honorable Members of the City Commission Richard L. Fosmoen City Manager CITY OF VIAN11, F't_UTIIDA INTER -OFFICE a S?AORANr.JI__:M 1 t November 24, 1980 �H FEC Condemnation The attached letter is an offer from the FEC to (1) settle the condemnation suit on the P & 0 Dock Property, and (2) provide the City with a method of acquiring property on the River necessary for the construction of•a sports arena. Basically, the FEC is offering to: P & 0 Bay Property - Sell the entire 32 acres of up land and bay bottom at the P & 0 site to the City of Miami for $11.811. - Retain development rights for a residential project at a FAR of 5 on 45'1') of the up land, and for marina construction on 55% of the bay bottom. - Maintain the park in perpetuity which would be constructed on the re- mainder of the property. FEC River Property - Sell 2.5 acres to the City for $4.2M. - Donate 2.5 acres to the City at the end of 5 years assuming that the City has acquired sufficient land to permit construction of a marina. - Retain for development of a hotel approximately 1.5 acres. - Charge a $1 per night per rented room surcharge to be used for arena promotion. - Donate to the City $500,000 per year for 5 years to be used for civic improvements in downtown Miami. Additionally, f Settle the Holiday Inn suit on the Bay property. The FEC would assume all relocation costs of the port. The City would be responsible for all attorneys' fees as we are now as the condemnation suit is pursued through jury trial. Honorable Members of the -2- It is my recommendation that the City Commission schedule a full public dis- cussion of the attached proposal as early as possible in December. I believe the offer that has been made by FEC is worthy of serious consideration by the - _ City and has been made in good faith by the FEC. We have agreed that none of the discussion relating to a possible settlement would be admissible if these negotiations are for some reason terminated. 13mmIAm, HF.YNOLDS, ByRNr, & Mo(:)Hj: PROFES SiONAI ASSOCIATION V LAWYEPS 203 901,_�T-WEST tJ' STREET 1%1LA'11, F 1.01t1DA 3:11:10 TOBY PRINCE BRIGHAM------- SUITE 1110 ROBERT N REYNOLDS TELEPHONE (3051 858 - 2400 ELLIS SARASOTA BANK & TRUST BLDG POSEPT C. BYRNE 1605 MAIN STREET STANLEY W MOORE (1 Sei{A40TA, FLORiDA :f�i677 CELESTE HARDEE MUIR November 20, 1980 (8131 365-3800 5 CARY GAYLORD PLEASE REPLY TO. Miami City of Miami 3500 Pan American Drive Miami, Florida 33133 Attention: Mr. Richard Fosmoen Dear Mr. Fosmoen: Under the leadership of the City Commission, tremendous progress has been achieved in recent time toward the goals of revitalizing downtown Miami. Creative governmental action and resourceful cooperation by all sectors of the community have brought public and private investment in projects that are broadening the tax base to enable even greater achievement for the public good. The concept of in town living is beginning to take place in a real %.ay. The quality of downtown for living and working for cultural and civic endeavors is rapidly im- proving because of the broad based no%., spirit which is revolu- tionizing the City of Miami. In connection vith all that is happening to further these goals, the City of MiaiA has several pending concerns and problems �%,hich have been discussed, or which are presently in litigation, involving the Florida East Coast Railway Company. In summary, these are: 1. Sports Arena Complex Involving the "Freight House" Propert_r. The City •:ants to locate a Sports Arena Complex on a site between Miami Avenue and I-95 on the North bank of the Miami River. This site includes part or all of the property of the Florida East Coast Railway Company com- prising 6.45 acres. To achieve this public purpose the City intends to rely on the private sector for development and management of the project once the land is acquired. The preference of the Railway would be not to have its property taken. R Z 09• le Page 2 Mr. Fosmoen November 20, 1980 2. Passive Park Involving The "P and O Dock Property". The resolution to make the "P & O Dock Property" (east of Biscayne Boulevard between the expanse of Bayfront Park and Bicentennial Park) into a passive park was conceived almost ten years ago. Pursuant to this perhaps outdated con- cept, the Courts have authorized the exercise of the City's power of eminent domain in a manner that would take this property off the tax roll and limit its use forever to another passive park. Until Final Judgment is entered in the pending eminent domain proceedings, the City has the opportunity.in coopera- tion with the private sector to update and broaden the con- cept of a passive park. to allow development rights within the park perimeter for purposes that would enhance accomplish- ment of the current goals for the downtown and substantially increase the tax base to provide revenues for other City endeavors. ' Otherwise, the pending eminent domain litiaation will proceed to determine the compensation to be paid for the ownership interests taken on account of the fair market value of the property, moving expenses, interest and costs of the proceedings. The initial valuation position of the City was at 14.5 Million for the 32+ acres (of �•;hich, subject to survey, approximately 3+ acres is deep %•rater harbor and 24+ acres is bulkheaded and filled land.) The ocrner's valuation at jury trial will excee:? 34 Million Dollars as the fair market value of the property. Trere is also other litigation against the City in- volving the "P and 0 Dock Property" by other parties. Several lessees on the property seek damages for restitution or inverse condemnation of their leasehold rights in the property. Of these the most notable is the claim of Holi- day Inns, Inc. which is in excess of Two Million Dollars for deprivation of the use of their leasehold during 1971 through 1976. Also, the Interstate Commerce Commission has brought suit to enjoin the City from possession of the "P and O Dock Property" until an application is filed and approval of the Interstate Commerce Commission is obtained to abandon an active railway port facility pursuant to Federal Statutory regulation. BRtaiIA01-1. I R NOLDS, BYRE Sc .1-foonn, P.A. Page 3 Mr. Fosmoen November 20, 1980 OOW 3. Contributions From The Private Sector To Augment The Budget and Funding Limitation Of The City For Civic Improvement. The City of Miami has expressed a desire to interest the private sector in contribution of capital resources to augment the budget and funding limitations of the City's current situation in advancing civic endeavor and improvements not yet in being %..high would enhance the quality and vitality of Downtown Miami. Recently, the Florida East Coast Railway Company and Dade County were able to cooperatively work out many difficult problems in connection with the County's Rapid Trafi'sit Project. We would now attempt to reach mutual accord with regard to the City's projects and concerns involving the Railway. While each of these concerns are separate matters which can be individually dealt with; it seems to us, that a timely resolu- tion of these several distinct problems all at the same time would provide the greatest convenience to the City and the Railway in planning and carrying out the legitimate interests and goals of both parties, respectively, as to each separate problem. To that end we have arrived at certain proposals to present to the City Commission after extensive and constructive negotiations thus far. If, therefore, the City is in a position to simultaneously resolve all of these matters in accord with the following pro- posals; the Railway would propose the following agreement as to each distinct concern or problem. It is understood that the proposals herein being presented as to each problem and their consideration by the City are completely without prejudice to either the City or the Railway in any way what- soever, now or in the future, or in any pending or future proceeding or litigation, in the event agreement is not reached. nl - Acquisition Of Railway Property For A Sports Arena Comolex. Subject to matters of public acres of property East of I-95 on i River. The City wants to acquire for construction of a Sports Arena City could establish a sufficient cise of eminent domain to take the to resolve this acquisition under record, the Railway owns 6.45 the North bank of the Miami part or all of this property Complex. Whether or not the neccessity to justify the exer- property, the Railway offers the following arrangements: 13wonAm, U) Vor.ns. B Rxr. Sc %looier.�, P. A. F e Page 4 Mr. Fosmoen November 20, 1980 (a) The City shall purchase by Special Warranty Deed the ownership of the Railway in 2-1/2 acres of the site at f the location of the Railway's selection for the agreed price of 4.2 million dollars with the City paving the expenses of survey, documentary stamps and closing, except for the pro- rated real estate taxes and the owner's attorneys' fees. The closing shall occur in January, 1981. (b) Provided the City has within five years from the date of closing of the first 2-1/2 acres; i) obtained what- ever additional land is required of third parties to complete construction of the Sports Arena Complex and ii) has committed to the immediate orderly development thereof and Iii) the City has accomplished the swap, provided by paragraph �1(c) below, then the Railway will donate -an additional 2-1/2 acres of the site to the City by Quit claim deed. (c) The Railway shall retain 1.45 acres of area of its ownership for construction by or with a third party developer of a high rise hotel as an integral part of the Sports Arena Complex. The City believes that the hotel facility which will serve the public purpose of the Sports Arena Complex should be located on i•,iami Avenue sufficiently North of the DIiami Avenue Bridge ramps to provide at grade frontage. Therefore, upon acquisition of the total site for the Sports Arena Complex the Railway will swap without exchange of any monetary considera- tion its 1.45 acres, for Sports Arena purposes, for the Sports Arena hotel facility site specified above of at least 1.45 acres in size. The City will accomplish the swap and permit the construction of said hotel facility. (d) The Railway, its successors or assigns, will pay to the City one dollar per day per room rented at the rates charged upon commencement of the normal hotel. operation. This payment shall bc. increased or decreased as the room rates thereafter increase or decrease in the same proportion to the subsequent room rental rate as the one dollar has to the room rate in effect upon commencement of the normal hotel operation. The funds generated by this payment shall be spent by the City in the advertising and promotion of the Sports Arena Com- plex including the said hotel facility. There shall be no other hotel facility within the perimeter of the City -owned land comprising the Sports Arena Complex;. I)nxGrr&m, REYNOLDS, Wrinve & �-toouH, P. A, lel r Page 5 Mr. Fosmoen November 20, 1980 (e) If construction of the Sports Arena Complex or requires the 2-1/2 acres which the Railway is to donate before the five year period of time for the donation to be made; then the Railway will lease said 2-1/2 acres for such construction at one dollar per year until the donation is made. #2 Passive Park Involvina The "P and O Dock Property". (a) To allow residential development rights within the perimeter of the proposed park: in order to enhance the usefulness and purpose of the specific park area and all of the City's bay front parks in downtown Miami while significantly increasing the tax base and cnccuraging in town living; the City shall acquire the 32+ acres of property in the pending eminent domain proceeding after amendment of the estate to be taken to reserve the develop- ment rights hereinafter specified in the Railway, its successors or assigns. The City shall upon entry of Final Judgment for the taking of such amended estate in and to the 32+ acres pay Railway the sum of 11.8 million dollars. (b) To assure the residential development intended to be accomplished by the reservation in the owner of the rights for such development; the Railway shall transfer thcse rights to a third party do -eloper, or developers reasonable qualified to undertake the project. The terms and arrangements of such transfer shall be those which the Railway deems best advised; provided however, that such transfer is accomplished no later than five years after the entry of Final Judgment or eighteen months after a permit is obtained for abandonment of the port facility on the property and the same is relocated to the County's Dodge Island Port, whichever is the longer period of time. The time period for such transfor specified above shall be extended by the duration, plus eighteen months, of any of the following circumstances beyond the control of the Railway which make development of the property not feasible: Acts of God; wars; litigation by others; severe economic recession, extremely adverse market conditions, or delay in obtaining any governmental approvals required for the project. (c) To further assure accomplishment of the residential i development intended; the Railway shall pay a penalty to the City of one million dollars for each year that the Railway fails to make the transfer as foresaid within the time period specified above or any extension thereof. BRIGHAM, 16'. .Nol.ns, B IML & Y061M, P.A. /„` Page 6 Mr. Posmeon November 20, 1980 (d) The owner shall retain development rights upon and over, in and to, forty-five (450) percent of the land area of the property and fifty-five (551) percent of the water area of the property for residential development. Such development shall occupy the said land area and shall be permitted by the City to a floor area ratio of five (5). The 55°s of the water area within the property shall count as ground area or. "lot" area in the floor area ratio computation. Enclosed parking in the building shall not count as floor area in the floor area ratio computation. Any building in connection with the marina facility shall not count as floor area in the floor area ratio computation. Such residential development may include commercial establish- ments and uses interior to the buildings suitable for such residential development. The said 45, of the land area of the property shall be generally rectangular in shape of which the northerly boundary shall be a line formed by the northerly, edge'of the land at the southerly side of the water area within the property; the southerly boundary shall be a straight line roughly para- llel to the top of the bulkhead at the easterly edge of the property but 100 feet west thereof except for the easternmost 50 feet which shall be. at the easterly edge of the property. The westerly boundary shall be parallel to the top of the bulkhead at the easterly edge of the property. The width of the aforesaid rectangular shaped land area at its narrowest variation shall be 420 feet in its northerly to southerly direction; and the length in an easterly to westerly direc- tion shall be such as is necessary to include �-;ithin said rectangular shape that area %:,hich constitutes 45`1 of the land area of the property as determined by survey. That area which constitutes the said 551 of the water area �-,ithin the property shall have as its southerly boundary, the northerly boundary of the aforesaid 45" of the land area within the property; and the northerly boundary shall be a straight line generally parallel to the said southerly boundary and in such location as will include bet;,-een said northerly and southerly area 55''. of the water area v:,ithin the property according to survey. The City shall permit the development and use of the area within the 55' of the water area of the property for marina or other water oriented facilities ancillary to the residential development. Brtiou& i, RI YNOLDS, I3YRNM & %IoottL, P.A. Page 7 Mr. Fosmoen November 20, 1980 Should the City ever determine to develop a marina facility within the balance of the water area, the Railway, its successors or assigns shall have the right of first re- fusal to develop and operate such marina to assure unity of operation with that located on its 55° of the water area. The development riqhts retained by the owner shall in- clude a two-way right-of-way opposite N.E. 7th Street and another opposite N.E. 8th Street for the purpose of connecting the said 450 of the land area of the property to Biscayne Boulevard for ingress and egress. The southernmost right- of-way shall extend to the easterly end of the southerly boundary of the said 450 of the land area of the property. A third two-way right-of-way for ingress and egress shall extend from the said 45- of the land -'area of the property to Port Boulevard if necessary approval can be obtained from appropriate authority crossing the railroad track northerly of Port Boulevard. The width and other design features of such rights -of -way shall be those required by sound engirtoer- ing and in accordance with the criteria imposed by all appro- priate governmental authority for rights -of -way required to serve the full exercise of the development rights herein set forth. The area within said rights -of -way shall not be in- cluded in the said 450- of the land area within the property and shall not be counted as ground or "lot" area in the floor area ratio computation. (e) The public park created on the property by the City shall be maintained according to normal City park standards at the expense of the Developer of the development rights herein provided from the time development starts. (f) The Railway c-.ill pay the amount necessary to satisfy the claims of Holiday Inns, Inc. against the City of Miami in the above referenced lawsuits, and according to law the City shall pay all costs, including reasonable attorneys' fees in the eminent domain proceedings brought by the City to acquire the Railway's property referenced above. (g) In the absence of any litigation on the part of third parties which would prevent consummation of the agree- ments herein proposed; the Railway after entry of Final Judgment as herein provided, shall file an application with the Interstate Commerce Commission for abandonment of its marine port facility on the P & O Dock property, and will bear all costs of pursuing such application. Loth the City and the Railway shall jointly seek the approval of such application. Bujoicn...t, R1:»:.Lns, BY12N1: & !-10ORL, P.A. 0 0 Page 8 Mr. Fosmoen November 20, 1980 (h) After a permit is obtained from the Interstate Commerce Commission for abandonment; and a suitable relo- cation site is available at the County's Dodge Island Port; then the Railway will diligently remove its port facilities from the P & O Dock property at the Railway's expense. #3 - Contributions From The Private Sector To Aur.ment The Budget and Funding Limitation off The City For Civic Improvement. The Railway shall each year for the next five years donate the sum of $500,0o0.n0 to the City of Miami to be spent as the City Commission directs for the revitalization and civic improvement of downtown Miami, Florida. As attorneys for the Florida East Coast Railway Company in these matters and on its behalf request that youpresent this letter to the City Commission and advise us of their decision upor consider- ation of the proposals as herein made. Sincerely yours, SHUTTS & BOWEN .n ByaL_ � _ i Ll lti Eric Meyers, Counsel TPB/joy BRIGHP,M, REYNOLDS, BYRNE & MOORE, P.A. Y Toby Prince Brigham, f Special Associate Counsel I31tictiA..t, I HYNOr.n1;, I3YUNH & JIoonr., P. A.