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HomeMy WebLinkAboutM-80-084411 CItY Of MIAMI, FLORIOA INteP•OPPICE MtMORANbuM TO Honorable Members of the ,.,,F November 24, 1980 = .E City Commission FEC Condemnation f MW p p r R DIM �� Fosmoen -«FL7E `:.: LS City Manager 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 tot — 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 $11.8M. - Retain development rights for a residential project at a FAR of 5 on 45% 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, - 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. * - 4��_ � 80-844 Hweabl a Members of the It is my recommendation that the City Commission schedule a full public dis- cussion of the attaohed prgposai as early as possible in December. I believe the offer that has been Bade by FFC is worthy of serious Consideration by the City and has been made in good faith by the FCC, we havo agreed that none of the discussion relating to a possible settlement would be admissible if these negotiations are for some reason terminated, t a K kl I I I�,rt,ii•,? - lot' ,I letI f tOBY PRINCE BRIGHAM ROBERt N REYNOLOs ROBERt C, BYRNE STANLtY W MOORE CELEBtE HAROEE MUIR S CARY GAYLORD PROF= ESSIONAL ABSOCIAtION PJ �� J1' n{' LAWYERS 203 soutHWEst 1:5+4 stREEt tELEPHONE (30S) OSS-2406 November 20, 1980 City of Miami 3500 Pan American Drive Miami, Florida 33133 Attention: Mr. Richard Fosmoen Suitt 1116 ELLIB SAAASOTA BANK ✓Y tPUSt 6LOO IBOS MAIN stAEO SARANO#A, VtOTttbA 3118i! (813) 361S-:m00 PLEASE AMY fib: Mi anti i 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 way. The quality of downtown for living and working for cultural and civic endeavors is rapidly im- proving because of the broad based new spirit which is revolu- tionizing the City of Miami. In connection with all that is happening to further these goals, the City of Miami has several pending concerns and problems which 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" Property. The City wants to locatea 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 ,-; • _ , Page 2 Mr. Posmoen November 20, 1980 Passive ?ark_ lnyd1'g g 7'he "P and 0 bock Properyty". The resolution to Make the "P & 0 bock Property" (east of tiscayne Boulevard between the expanse of tayfront 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 litigation 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 which, subject to survey, approximately 8+ acres is deep water harbor and 24+ acres is bulkheaded and filled land.) The owner's valuation at jury trial will exceed 34 Million Dollars as the fair market value of the property. There 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 0 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. I3JUGI1"l, RI..Y. OLDS, BYRNE tic !6IoonE, R A. ni Page J Mr. rbsmoen N6vembet 26j 1986 3. 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 which 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 Transit 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. #1 - Acquisition Of Railway P Complex. Subject to matters of public acres of property East of I-95 on 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 For A Sports Arena 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: BiuGiuoa, HEYNOT D.S. 13YUNP & >1001:t:, P. A. r, Page 4 Mr. vosmoen November 20, 1W (a) The City shall purchase by Special Warranty heed the ownership of the Railway in 2-1/2 acres of the site at the location of the Rail.way's selection for the agreed price of 4.2 million dollars with the City paying 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 Miami Avenue sufficiently North of the Miami 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 be 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. I31i1011A.A1. REY OLDS.I3Y1VN1: & �IOOUr.. P- Page 5 Mr. Vosmoen November 20p 1980 (e) lf.construction of the Sports Arena Complex 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 _ InyoYying__The_`_p. and 0 bock property" . (a) To allow residential development rights within the perimeter of the proposed park in 6rder 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 encouraging 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 Railways 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 3.1.8 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 those rights to a third party developer, or developers reasonably 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 transfer 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 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. I31HUHAo1. It1:R%'o1.n:;, 11 uNIs & Mc ORE, P.A. r.. Page 6 Mt. Vosmeoh Novetbet 20p 1980 (d) The owner shall retain development rights upon and over, in and to, forty-five (45%) percent of the land area of the property and fifty-five (55%) percent of the wator 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% of the water area within the property shall count as around area or "lot" area in the floor area ratio computation. Enclosed parking in the building shall not count as floor area in the flcor 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 within said rectangular shape that area which constitutes 45% of the land area of the property as determined by survey. That area which constitutes the said 55% of the water area within 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 between said northerly and southerly area 55% of the water area within the property according to survey. The City shall permit the development and use of the area within the 550 of the water area of the property for marina or other water oriented facilities ancillary to the residential development. I3RjC31IA.N1, j?ItV%or.vs, 13YUN-H & :► MORE, P, A. 59 Page 7 Mt, Vo8moen November 201 1980 Should the City ever determine to develop a marina facility within the balance o,f the water area, the Railways 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 rights retained by the owner shall in- clude a two-way right-of-way opposite N.B. 7th Street and another opposite N.B. 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 45% of the land area of the property. A third twos -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 engineer- 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 45% 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 will 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 & 0 Dock property, and will bear all costs of pursuing such application. Both the City and the Railway shall jointly seek the approval of such application. i31HO11Aas, RI aor.nS, Bt11XV & P A. Paqe 8 Mr. rogtoeft November 20# 1580 (h) After a permit is obtained from the Interstate Commerce Commission for abandonment; and a suitable relo- cation site it available at the County's bodqo Island P6rtII theft the Railway will diligently remove its port facilities from the P & 0 Dock property at the Railway's expense. #3 - Contributions Prom The Private Sector To Augment Budget and FupdingT, i-mitMon of TheCity For C1 ImoroVement The Railway shall each yearforthe next five years donate the sumof $500t000.O0 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 upon consider- ation of the proposals as herein made. TPB/j oy Sincerely yours, SHUTTS & BOWEN By Eric Meyers# Counsel BRIGHP.Mr REYNOLDS, BYRNE & MOOREt P.A. To* Prince Brigham, Special Associatj counsel lbaan.vq, Rry-.oxams, Iwvi: & Hoour-., P.A.