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HomeMy WebLinkAboutR-79-0753-jI RESOLUTION NO. 7 9 - f 5 3. A RESOLUTION AUTHORIZING THE CITY MANAGER TO PURCHASE IN LIEU OF CONDEMNATION TWO PARCELS OF LAND, BEING. 134 SOUTHEAST 2ND STREET, PARCEL "B", AND 126 SOUTHEAST. 2ND STREET, PARCEL "A", MIAMI, FLORIDA, FOR THE SUM OF $1,501,000.00, FROM PRESENTLY ALLOCATED CITY OF MIAMI/ UNIVERSITY OF MIAMI JAMES L. KNIGHT INTERNATIONAL CENTER FUNDS TO COVER THE COST OF ACQUIRING FEE SIMPLE TITLE TO THIS PROPERTY AND OTHER COSTS INCIDENTAL TO THE ACQUISITION. WHEREAS, the parcels of property located at 126 Southeast 2nd Street (Parcel "A") and at 134 Southeast 2nd Street (Parcel "B") are proposed to be acquired for the City of Miami/University of Miami James L. Knight International Center Parking Garage; and WHEREAS, the City Manager has approved the acquisition of this property to provide for said parking garage and concurs with this recommend- ation to acquire this parcel; and WHEREAS, funds are available to acquire said parcels from presently allocated City of Miami/University of Miami James L. Knight International Center funds; and WHEREAS, the owners of the two parcels of property have offered to convey fee simple title to both parcels to the City for the total negotiated price of $1,501,000.00; and WHEREAS, it is deemed in the best interest of the City of Miami, Florida to acquire the property at this time through purchase, in lieu of condemnation; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OFT TIMETX OF MIAMI, FLORIDA. ff ITEM IVO• - Section 1. The City Manager is hereby authorized and directed to purchase the property located at 134 Southeast 2nd Street, Miami, Florida, legally described as: Miami North B-41, beginning 200' east of the southeast corner of Southeast 1st Avenue and Southeast 2nd Street east 50', south 120', west 50' to point of beginning, known as par- cel "B" and 126 Southeast 2nd Street, Miami, Florida, legally described as: Miami North B-41, beginning 150' east of the southeast corner of Southeast 1st Avenue and 2nd Street, east 50', south 120', west 50' north to point of beginning known as parcel "A". For the development of the James L. Knight Conference Convention Center Parking Garage, for the combined total sum of $1,501,000.00, using presently allocated City of Miami/University of Miami James L. Knight International Center funds to cover the cost of acquisition of fee simple title to both parcels and all other costs incidental to this acquisition. PASSED AND ADOPTED this 8TH day of november 1979.. MAURICE A. FERRE ATTEST: PREPARED AND APPROVED BY: G. MIRIAM MAER ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: 1 , AGE RGE F. KNOX, JR,. O' TY ATTORNEY MAYOR -2- 79-753 October 31-, 1979 Mr. Michael J. Getelman Attorney at Law 126 S. E. Second Street Miami, Florida Mr. Raymond W. Butler 134 S. E. Second Street Miami, Florida Gentlemen: This letter will record our mutual understanding following receipt by me on October 22, 1979, of an offer to sell your properties, known as Parcels A & B, located at 126 S. E. Second Street and 134 S. E. Second Street, based on the terms detailed in your letter. In discussing your offer with Mr. Mike Getelman, in representation of both Butter and Getelman, we arrived at the following mutual interpretations of your offer, which I am hereby recording for purposes of clarity: 1) The time within which the City has the option of accepting your offer will run through November 12, 1979, with the understanding that the 60 days limit on closing will start to run from November 6, 1979. 2) It is understood that your offer to sell your land at your stated price includes all improvements on that land without any expectation of additional compensation for those improve- ments. 3) Although the City would acquire all of the improvements on the Getelman property, it is understood that Mike Getelman has the prerogative of removing any portion of his improve- ments without incurring any financial obligation to the City. 4) While it is understood that the City will acquire all title and interest to the improvement on the Butler property, it is mutually agreed that the structure has some historical in- terest and that the City will make reasonable efforts to pre- serve the original frame structure. 79-753 ) It is understood that the City may take possession of either.or both structures anytime after 90 days from the date of closing, but that Getelman and Butler each have the right to occupy the improvements rent free for a max- imum of 180 days after the date of closing if the City` does not indicate an urgent need for the property at any time following the 90-day period but before the expiration of 180 days. If the above interpretations of your offer meet sign a copy of this letter and return it to me, In consideration of our option to exercise this check in the amount of $100 for each addressee. Sincere /1 Jos i R. Grassie City/ Manager with your agreement, please each in order to record'our understanding. agreement, I have enclosed a City AGREED: Michael J./Getelman ti\ 7 - _ Raymond W. Butler MICHAEL J. GETELMAN RICHARD J. STONE MICHAEL J. GETELMAN, P. A. ATTORNEY AND COUNSELOR AT LAW 128 SOUTHEAST SECOND STREET MIAMI,FLORIOA 33131 October 22, 1979 Joseph Grassie, City Manager City of Miami 3500 Pan American Drive Miami, Florida Re: Dear Mr. Grassie: TELEPHONE (305) 358.6191 City of Miami vs. Michael J. Getelman, Raymond W. Butler, Jr., et al Circuit Court Case #79-11328 (10) This is to confirm our recent meetings and numerous telephone conversations with respect to settlement of the above-captioh;:d litigation. For settlement purposes and for no other purposes whatsoever, and pursuant to your request, I herewith enclose:a copy:of recent appraisal on the subject property. You will note that the property, including both Parcels A and B, have a gross appraisedvalue based on land value only, not taking into consideration the improvements thereon, in that it is the City's intention to demolish or remove same, of $1,560,000., of which $837,500. is attributed to Parcel A, of Which:I am the sole beneficiary of the Land Trust in:whose name title is held, and $722',5.00is attributed to Parcel B, of which the Butler Family is the fee title holder. As per our recent conversations and notwithstanding the fact that both the Butlers and the undersigned had demanded a much higher figure for the purchase of the two (2) respective properties, in that neither party was desirous of selling same, and further I -herewith reduce to writing and confirm the figures discussed with you at our last meeting which had been greatly reduced in an effort to amicably settle this matter for all parties concerned. I submit said figures as an offer of„settlement and for no other purposes whatsoever, and in the event that said offer is not accepted within fifteen (15) days from the date of this letter, said offer shall be deeded withdrawn,' null and void, and of no further force and effect. 79 t3 4 Joseph Grassie, City Manager Page 2 October 22, 1979 PARCEL A: City National Bank as Trustee; Michael J. Getelman sole bene- ficiary; 126 S. E. Second Street, Miami, Florida 33131 Land Moving and re -locating expenses Miscellaneous expenses, including legal fees, appraisal fees, costs of litigation, etc. Total PARCEL B: Raymond W. Butler, Jr., et a 134 S. E. Second Street Miami, Florida 33131 Land Moving and re -locating expenses Miscellaneous expenses, including legal fees, appraisal fees, costs of litigation, etc. Total $750,000.00 31,750.00 20 000.00 $801.750.00 Said offer is contingent upon closing by (60) days from the date of acceptance of January 1, 1980, all cash at the time of the sixty (60) day period by the City is City National Bank being able to provide parcels within said time period. $650,000.00 29,250.00. 20,000.00 $699,250.00 the City within sixty offer, but not before closing. Closing within subject to Butler and clear title to said 1 Joseph Grassie, City Manager Page -3- October 22, 1979 With respect to Parcel A, Getelman shall, have the right to remove and and all portions of the interior or exterior of said build- ing as he deems fit, including but not limited to the entire building and/or the contents thereof. Getelman shall be per- mitted to occupy the premises located on Parcel A for a period of not less than one hundred eighty (180) days from the date of closing, rent free. Raymond W. Butler, Inc. is to be permitted to occupy Parcel B for a period of not less than one hundred eighty (180) days from the date of closing, rent free. Both parties agree to vacate said premises one hundred eighty (180) days after "closing. Thank you for, your consideration and cdc eration with me in this matter. MJG/ad Enclosure Very truly y. rs MICHAEL J. GETELMAN, sole beneficiary of Pa1 A The foregoing is hereby confirmed, ratified, accepted and approved. , ) . • ,/ 'RAYMOND W. BUTLER, JR.," individ- ually and on behalf of Raymond w. Butler, III and Thomas C. Butler, fee title holders, Parcel B. T'i;a.i•`Ft: IC r._ Joseph R. Grassie /� City Manager /�r •V. E. Grimm,• A�'str�?Cit� aSe 97.Ftilp4Ce5: ,,•JpsO B ' l].varez,`.)Deputy City Attorney _ "..-- ._--P- November 2, 1979 City of Miami/University, of Miami m James L. Knight International Center Parking Garage Property. Acquisition For the past year and a half, the City Administration has been attempting to acquire the properties adjoining the:above captioned Center: through negotia tion: Parcel A — 126 S.E. 2nd Street and Parcel B 134 S.E. 2nd Street. These negotiations have been unsuccessful because Mr. Michael Getelman (principal owner of Parcel A) and Mr. Raymond W. Butler, Jr. (owner of Parcel B) both feel that their property is far more valuable than the value indicated by the City's appraisers. In March and April of 1979, the City's appraisers indicated a high value for Parcel A of $376,500 and a high value for Parcel B of $346,500. The City appraisals did not contain or reflect any additional costs for relocation, moving, legal expenses, appraisal costs, etc. A copy of the appraisal made for Mr. Getelman (Parcel A) and Mr. Butler (Parcel B) dated October 10, 1979 and prepared by John Milloway, M.A.I., indicates the value for Parcel A as $837,500 and for Parcel B as $722,500 for a total combined value of $1,560,000. Mr. Getelman, on behalf of himself and Mr. Butler, have agreed to accept a total figure of $1,501,000 which figure includes $100,000 for moving, relocation, legal and other miscellaneous expenses. Based on the City's highest appraisal, the total value of land and improvements is $723,000. If miscellaneous expenses are added using those figures acceptable to, Mr. Getelman, an additional $100,000 would be added, making the total. value $823,000, resulting in a difference of $678,000. between the amount of the appraisals for the City, including miscellaneous costs and the amount Mr. Getelman offered on behalf of both Parcel A and Parcel B. Although the City has filed a Quick Take procedure to obtain this property. and there is no question that the City could pursue the acquisition of this property through the Courts,there is a question as to how long acquisition of the property will take. The main question would revolve around the City's ability to conclusively prove the necessity and public purpose in the taking of the property. Mr. Getelman and Mr. Butler have engaged two of the most expensive and experienced condemnation attorneys in Florida to protect their interests. These attorneys have filed motions in the condemnation proceeding challenging the City's right to take and particularly denying the necessity of taking for the purpose of the World Trade Center. 79-753 Joseph R. Grassie City Manager _2- November 2 1979 Our experience in acquiring land by condemnation through the courts does not give any assurance that this method would convey clear title in a short time, and in fact would likely take approximately one year. It is also a fairly certain assumption that a jury would establish a value somewhere between the City's appraisal and the Getelman-Butler offer. If we assume that the jury -determined value would split the difference between the City's appraisal and the owners' offer, we arrive at an amount of money approxi- mating $340,000. The delay of a year in the acquisition of the property would likely force the City to drop the World Trade Center projectbecause of the necessity to proceed now with the development of the parking garage to meet our contractual commitment of providing a garage for the City of Miami/University of Miami James L. Knight International Center. To abandon the World Trade Center project means an automatic loss of the Five Million UDAG Grant as well as the annual loss of $700,000 in revenue which the City expects to receive from the World Trade Center Tower and Parking Garage. Your attention is directed to the protracted period of time before acquisition of the property can be had and the likelihood that the settlement cost, at this time, would be less than the entire cost, including legal fees, before the condemnation proceedings are terminated. In view of the loss of the UDAG Grant and the loss of anticipated annual revenues, as well as the uncertainties of successful acquisition by condemnation, it is our recommenda- tion that the amount of $1,501,000 be authorized as payment to the owners of Parcel A and Parcel B for the acquisition of title through direct negotiation using funds previously allocated from the City of Miami/University of Miami James L. Knight International Center funds. An accompanying Resolution has been prepared for your consideration. VEG/JBA/RFC/wpc 111111111111111111111111111m AilVlAt.41.1V:talkzgo, • „ANNIMIIIIIIMPOMinewm 'n-...ft.TI•11.1"42,14=.74g4..%:•,,A.r..rzwir,i,t•-ww;I:g.41-iaretoriarnitoo,OrogOtASIT4. Qtevtitttatc of ppraiat 1 do hereby certify that upon request for valuation by: J.E. Gunderson, Director of Finance City of Miami, Florida 1 have made an investigation and analysis of the following described property: Parcel A - 126 S.E. 2nd Street, Miami, Dade County, Florida Miami North B/41, Beginning 150 feet east of Southeast corner of SE 1st Avenue and'SE 2nd Street, East 50=feet; South 120 feet, and that I am of the opinyet s tat oa 0 feet North.to' P.O.B. April 19, 1979 the Fair Market Value of the land and improvements, if any thereon, was $376,500 THE FAIR MARKET VALUE, SET FORTH ABOVE, IS SUBJECT ID THE FOLLOWING LIMITING CONDITIONS: The undersigned appraiser certifies that, to the best of his knowledge and belief. the statements contained in this ap- praisal, subject 10 the limiting conditions set forth below, are correct: also that :`..is' appraisal has been made in conformity with the Rules of Professional Ethics of the .Americcrn Institute of Real 'Estate Appraisers of the National Association of Real Estate Boards. of which I am a member. This property has been appraised as though free of liens` and encumbrances, in responsible ownership, and under com- petent management. No responsibility is to bo assumed for matters legal in nature. nor is any opinion of title rendered herewith. Good title is assumed. Both legal descriptions and dimensions are taken from sourcos thought to be authoritative; however, no responsibility is assumed for either unless a survey, by a competent engineer. is furnished to me. Possession of any copy of this report does not carry with it the right of publication. nor' may it be used for any purpose by any but the applicant without the previous written consent of the appraiser or the applicant and, in any event, only in its entirety. The appraiser herein, by reason of this report is not required to give testimony in Court. with reference to the property `< herein appraised, unless arrangements have been previously made therefor. The undersigned appraiser has no present or contemplated future interest in the property appraised and the compensa- tion for making this appraisal is in no manner contingent upon the value reported. The physical condition of the improvements described herein was based on visual inspection. No liability is assumed for the soundness of structural members since no engineering tests were made of, same. Date April 20, 1979 C._ F. Robert Quinheats. M. A. L 1102 Ponce de Leon Boulevard Coral Gables. Florida 33134 (14 QCertitttate of ppraiat 1 do hereby certify that upon request for valuation by: J.E. Gunderson, Director of Finance City of Miami, Florida I have made an investigation and analysis of the following described property: Parcel B - 134 S.E. 2nd Street, Miami, Dade County, Florida Miami North B/41, Begin 200 feet East of SE corner of SE 1st Avenue and SE 2nd St. East 50 feet, South 120 feet, West 50 feet to POE and that 1 am of the opinion that on April 19, 1979 the Fair Market Value of the land and improvements, if any thereon, was $346,500 THE FAIR MARKET VALUE, SET FORTH ABOVE, IS SUBJECT The undersigned appraiser certifies that, to the best of praisal, subject to the limiting conditions set forth below, with the Rules of Professional Ethics of the American Institute Estate Boards, of which I am a member. TO THE FOLLOWING LIMITING CONDITIONS: his knowledge and belief, the statements contained in this ap- are correct: also that this appraisal has been made in conformity of Real Estate Appraisers of the National Association of Real This property has been appraised as though free of liens and encumbrances, in responsible ownership. and under com- petent management. No responsibility is to be assumed for matters legal in nature. nor is any opinion of title rendered herewith. Good title is assumed. Both legal descriptions and dimensions are taken from sources thought to be authoritative: however, no responsibility is assumed for either unless a survey, by a competent engineer, is furnished to me. Possession of any copy of this report does not carry with it theright of publication, nor may it be used for any purpose by any but the applicant without the previous written consent of the appraiser or the applicant and, in any event, only in its entirety. The appraiser herein, by reason of this report is not required to give testimony in Court, with reference to the property herein appraised, unless arrangements have been previously made therefor. The undersigned appraiser has no present or contemplated future interest in the property appraised and the compensa- tion for making this appraisal is in no manner contingent upon the value reported. The physical condition of tho improvements described herein was based on visual inspection. No liability is assumed for the soundness of structural members since no engineering tests were made of samo. Date April 20, 1979 F. Robert Quinlivan, M. A. I. 1102 Ponce do Loon Boulevard Coral Cables. Florida 33134 .{::if �iwS.� .,;sr:, ..«'ns:...� 'i.i.,a ..... „ . r.,.`;iv; w:::, .- ... i'a': w4... 1.� �".x N.::`.".,�...�...�........._.......«.—.,_......,....�.......�,..Q.M..�...:�.ci4t.Y;.+eftiifFRtifi?!�hk�w�dASiV+MslOAE[slLn`-K,. 114 TELEPHONE (305) 443-7446 LEONARD A. BISZ REAL ESTATE SERVICE RS11 PONCE Oc LEON HOULEVANO SUITE 4I0 CORAL GABLES, FLORIDA 33134 April 20, 1979 Mr. Donal R. Stewart, Chairman Land Acquisition Committee City of Miami Office of Risk Management P. 0. Box 330708 Miami, Florida 33131 Re: Parcel A = 126 S. E. Second Street Parcel B - 134 S. E. Second Street Miami, Dade County, Florida Update Appraisals (Proposed Convention Center) MtM8ER AMERICANINSTITUTE OF REAL ESTATE APPRAISERS Dear Mr. Stewart: In accordance with request under date of March 23, 1979, from Mr. J. E. Gunderson, Director of Finance, I have made a careful review of my appraisals of July 31, 1978 on the above Parcelsofproperty for the purposeof updating the report. An analysis of current sales has been made, as well as a review of market conditions. Since my original report, there have been sales south of Flagler Street in the low $90.00 per square foot price. Market conditions have im- proved as well as the attitude about Downtown Miami, especially because of the continued progress in the Convention Center development and the announcement of the proposed "Ball Point" development. In my opinion Parcel A, 126 S. E. Second Street, has a Current Fair Market Value of $346,000.00, and Parcel B, 134 S. E. second Street, has a Current Fair Market Value of $336,000.00. Certificates of Appraisal are attached hereto. If you have any questions concerning these update valuations, Please do not hesitate to call upon. me. Respectfully yours LEONARD A. BISZ, M. A. ] ATTACHMENTS >r� 753 01 LEGAL DESCRIPTION PARCEL A MIAMI NORTLI - B 41 • BEGIN 200 Ft of SE Corner of 1 Avenue and 2nd St., East 50 Ft, S 120 Ft., W 50 Ft., North to POINT OF. BEGINNING. LEONARD A OISZ. M.A 1 . REAL ESTATE APPRAISER AND CONSULTANT (UPDATE) CERTIFICATE OF APPRAISAL PARCEL NO. A Parcel Address: 126 S. E. Second Street, Miami, Florida owner of Record and Address: _�i_y National _Bank of Miami As Trusiae Under Land Trust No. 5374-3 (Michael J. Getelman) Miami, Florida Legal Description: Beginning 150 ft. East of SE Corner of,S. E. 1st Avenue and 2nd St.; East 50 Ft., South 120 Ft, Weser 50 Ft., North to Point of Beginning City of Miami, North, Plat Book B, Page 41 TOTAL FAIR MARKET VALUE ESTIMATE THREE HUNDRED FORTY SIX THOUSAND DOLLARS ($346,000.00) Allocation: Land $331,000.00 Improvements $ 15,000,00 Total W34 ;000, This Parcel appraisal is subject to the statement of LimitingConditions attached to this overall report. The undersigned appraiser has no past, present, or future contemplated interest in the property appraised. Dote: April 20th, 1979 LEONARD A. RISE. M.A 1 . REAL ESTATE APPRAISER AND CONSULTANT (UPDATE) CERTIFICATE OF APPRAISAL PARCEL NO. B Parcel Address. 134 S „ F._-econd trjet, Miami , Florida - Owner of Record and Address: Raymond W a Butler, Jr., and Beverly Butler, his wife, R. W. Butler, III, and. To C. Butler, 134 S. E. Second Street, Miami,.Florida legal Description Beginning 200 ft• of the southeast corner of S. E. 1st Avenue and So E. 2nd Street, East 50 feet, south 120 ft. West 50 .ft a , North to_Point of Beginning, City of Miami North, Plat Book Bp. Page 41 TOTAL FAIR MARKET VALUE ESTIMATE THIREE HUNDRED THIRTY SIX THOUSAND DOLLARS ($336,000.00) Allocation: Land $331,000.00 Improvements $ 5,000.00 Total $336,000.00 This Parcel appraisal is subject to the statement of Limiting Conditions attached to this overall report. The undersignec ! appraiser has no past, present, or future contemplated interest in the property appraised.. Dare April 20th, 1979 Appraiser: LEONARD A. OISZ. M.A.I.. REAL ESTATE APPRAISER AND CONSULTANT LEONARD A. BISZ ,' LEGAL DES CRTPTTON PARCEL B MIAMI NORTH - B 41 BECIMMINC 150 Ft. East of SE Corner of SE 1 Avenue. and 2nd St., East 50 Ft, S 120 Ft., W 50, Ft. North to POINT OF BEGINNING. r= 3 LEONARDA DISZ. M.A 1. REAL ESTATE APPRAISER AND CONSULTANT PURPOSE OF APPRAISAL The purpose of this appraisal is to estimate the Fair Market Value of the property described herein. Fair Market Value is defined as the highest price estimated in terms of money which the property will bring if exposed for sale in the open market by a seller who is willing but not obliged to sell, allowing a reasonable time to, find a buyer who is willing but not obliged to buy, both parties having full knowledge of all the uses to which it is adapted and for which it is capable of being used. LEONARD A. DISZ, M.A.L. REAL. ESTATE APPRAISER AND CONSULTANT LIMITING CONDITIONS OF APPRAISAL The appraiser herein certifies that to the best of his knowledge and belief, the statements con- tained in this appraisal, subject to the Conditions of Appraisal, as set forth below, are correct; also that the appraisal has been made in conformity with the Rules of Professional Ethics of the American Institute of Real Estate Appraisers of the National Association of Real Estate Boards. The property has been appraised as though free of liens and encumbrances, in responsible ownership, and under competent management. No responsibility is assumed for matters legal in nature, nor is any opinion of title rendered. Good title is assumed. Both legal descriptions and dimensions are taken from sources thought to be authoritative; however, no responsibility is assumed for either unless a survey, by a competent engineer, has been furnished the appraiser. The appraiser has no present or contemplated future interest in the property appraised, and the Compensation for making this appraisal iS in no manner contingent upon the value reported. The physical condition of the improvements, if any, has been based on visual inspection. No liability is assumed for the soundness of structural members since no engineering tests were made of same. • 1 LEONARD A. BISZ. M A.1 . REAL ESTATE APPRAISER ANO CONSULTANT QUALIFICATIONS OF APPRAISER LEONARD A. BISZ, M. A. I Resident of Miami, Dade County, Florida, from 1925 to 1932, and since 1946. Actively engaged in appraisal of real estate for over 30 years. President of the South. Florida. Chapter No. 24, American Institute of Real Estate Appraisers in 1958 and also 1967. Member of American Society of. Appraisers and the American Right of Way Association. Registered real estate broker and member of the Miami Board of National Association of. Real Estate Boards. Approved appraiser for various government agencies, including the Veterans Administration, General Services Administration, U. S. Navy, U. S. Corps of Engineers and Federal Aviation Agency. Appraise for the Board of Public Instruction of Dade County, Florida, and the Board of County` Commissioners of Metropolitan. Dade County. Appraise for mortgage lending institutions, attorneys, accountants, bank and trust companies, public utilities and railroads. Qualified in court as expert witness in Circuit Court of Dade. County, U. S. District Court in Jacksonville and also Miami, Florida. Territory includes other than. South Florida, the Virgin Islands and Puerto Rico and also the Bahama Islands. Appraise on occasion property in various other States. LEONARD A. BISZ. M.A 1.. REAL ESTATE APPRAISER AND CONSULTANT 1 APPRAISAL REPORT PREPARED BY MILLOWAY REALTY INC. JOIIN E. MILLOWAY, M . A. I. PRESIDENT REAL ESTATE APPRAISER AND CONSULTANT 001 PENINSULA FEDERAL BUILDING Is.IIAML FLORIDA APPRAISAL REPORT No. 4076-10-79 Of Two Parcels of. Real Property Located at 126 and 134 S.E. Second Street Respectively, Miami, Dade County, Florida Prepared By: John E. Milloway, M.A.I., President Milloway Realty, Inc. 901 Peninsula Federal Building Miami, Florida 33131 Ordered By: Mr. Michael J. Getelman and Mr. Raymond W. Butler, Jr. 126 S.E. Second Street Miami, Florida 33131 Miami, Florida October 10, 1979 )IILL0 WAY REALTY , INC. It1:AVroRs 901 GREATER MIAMI FEDERAL BUILDING IMAM, FLORIDA fl9V3I JOHN E, M I LLOWAY, M. A. 1. PRESIDENT Mr. Michael J. Getelman and Mr. Raymond W. Butler, Jr. 126 S.E. Second Street Miami, Florida 33131 TELEPHONE (30S) 379-8422 October 10, 1979 MEMBER MIAMI BOARD OF REALTORS FLORIDA ASSOCIATION Or REALTORS NATIONAL ASSOCIATION OF R. E.BOARDS Gentlemen: Pursuant to your request, I have made a personal inspection and investigation of two parcels of real property located within the downtown section of the City of Miami, Florida, which are more particularly described elsewhere in this report, for the purpose of reaching•a conclusion of its Fair Market Value while taking into consideration the value of Parcel A to the adjoining owner of the property along its west and south boundaries and the value of Parcel B to the adjoining owner of the property along its south boundary. By Fair Market Value is meant the amount of money which a purchaser willing but not obliged to buy the property would pay to an owner willing but not obliged to sell it. By reason of my investigation, I have formed the opinion that the FAIR MARKET. VALUE of the herein described property, as of October 1, 1979, was ONE MILLION FIVE HUNDRED SIXTY THOUSAND DOLLARS ($1,560,000) Your attention is invited to the following pages of data which, in part, form the basis of this conclusion. I, the undersigned, do hereby certify to the best of my knowledge and belief, that the statements of fact and data contained in this report upon which the analyses, opinions and conclusions expressed herein are based, are true and correct; also, this report sets forth all of the limiting conditions affecting the analyses, opinions and con- clusions contained in this report; also, this report has been made in APPRAISALS BROKERAGE CONSULTANTS DEVELOPERS Mr. Michael J. Getelman and Mr. Raymond W. Butler, Jr.. Miami; Florida October l0, 1979 Page 2 C co ny with and is subject to the requirre entscof thetiodeeof Ethics and Standards of Professional Conduct of th Real Appraisers of the National Association of Realtors that I have Estate App property herein de - no present or future contemplated interest in the p P scribed. JEM:wr Respectively submitted, MILLOWAY REALTY, INC. Fr°2-v4 John E. Milloway, M.A.I. President PURPOSE OF REPORT The Purpose of this report is to estimate the Fair Market Value of the fee simple title of the property described herein as of October 1, 1979 while taking into'considera tion the value of Parcel 4 to the adjoining owner of the property. along its west and south boundaries and the value. of Parcel B to the adjoining owner of the property along its south boundary. By Florida court definition, Fair Market Value means the amount of money which a purchaser willing but not obliged to buy the property would pay to an'owner willing but'not obliged to sell it, taking into consideration"all uses to which the property is adapted and might in reason be applied. More simply stated, it is an estimate of the maximum selling price the property would bring if actively and properly offered for sale in the open market. In the process of preparing an appraisal based on the Fair Market Value premise`, the appraiser attempts to anticipate the reaction of the buying and selling public when a specific property is considered. The probable performance of human beings is not subject to precise -prediction. Value predictions, therefore, of -the experienced appraiser are, and can be,no more than skilled estimates. It -has been aptly stated that in such estimating, the appraiser forms an:opinion of the market's. opinion. The appraiser,does not make value,. set value, or determine value. He does not substitute his personal predictions as to the possibility of a future occurrence for the -market's predic- tions unless so requested and so defined. VIEW OF SUBJECT BUILDING LOOKING SOUTHEASTERLY FROM S.E. SECOND STREET VIEW OF SUBJECT BUILDING LOOKING NORTHEASTERLY FROM • REAR PARKING LOT VIEW OF SUBJECT BUILDING LOOKING SOUTHWESTERLY FROM S.E. SECOND STREET VIEW Or SUBJECT BUILDING LOOKING NORTHEASTERLY FROM REAR PARKING LOT LEGAL DESCRIPTION PARCEL A 126 Southeast Second Street, Miami, Florida: Begin150 feet East of the S.E. corner of S.E. 1st Avenue and 2nd Street; East 50 feet, South 120 feet, tVesi SDadeeCountythFloOridaet, of an un- recorded plat of the City of Mian , otherwise described as: Beginning at a point on the South line of 14th Street 150 feet East of the East line of Avene" inne otthe e4CitythtofreMiami, t foraFlolrida; thence run East along said South s- tance of 50 feet; thethenceu�estth aparallelotohthete acenterline l�ne of f Avenue "C" 120 feet; the spur track of the F1ida East 50Coast feet�,aandathenceas oNorthafoa and constructed for a distance a distance of 120 feet to the point of beginning. The above description refers to the original map of the City of Miami, Florida, made by. A. L. Knowlton, C.L., and recorded in Plat Book "B" at Page 41, of the Public Records of Dade County, Florida, and reference is made to such originalPlat andfor the - purposes of rendering the above description specific finite. Fourteenth Streeetab�venueve mentioned i:s nownknownoandadesagnated ignated as S.E. 2nd Street; as S.E. 1st Avenue. PARCEL B 134 Southeast Second Street, Miami, Florida: and S.E.1st Avenue-.:".2nd Street; Begin 200 feet East of the S.E. corner of 0 East 50 feet, South 120 feet, Miami, 50 feet, NorthF120ifeet, of an un- recorded plat of the City of Dade otherwise described as: Beginning at a point on the South line of 14th Street 200 feetida; East of the East. line of Avenue"C", in the City of. Miami, thence run East along said S011elh ltoethe East lineinof 14th eoft fAvenuelSCor a ance of 50 feet; thence South para 120 feet, thence West parallel to the center line ofthe spur track of the Florida: East Coastfeet, and thence Northway as now eforna dis- con- structed for a distance of 50 tance of 120 feet to the point of beginning. The above description refers to the original map dofeththe dCityn Plat of Miami, Florida, made by A. L. Knowlton, C.L., Book "B", at Page 41, of the Public Records of Dade Counts, Florida, and reference is made to such original Plat for the purpose ering the above description specific and definite Fourteenth Street, above mentioned, is now known and designated as1S.E. 2st nd,. Street; Avenue "C" is now known and designated as S.E. TYPE OF PROPERTY The subject property consists of two parcels of improved land thatea e rectangular in shape. Parcel A, the westerly one-half of -the p is improved with a one-story CBS office building housing •a law firm.. Parcel B, the easterly one-half of the property, is improved with.an old two-story frame residence which has been converted into offices for an insurance company. ZONING The subject property is zoned C-3, Central Commercial District, by the. City of Miami, Florida. According to the City of Miami Zoning Ordinance, the purpose of the district is as follows: The C-3, Central -Commercial District, is intended to apply to the heart of the downtown business section of the city,, which serves all portions of the city and the metropolitan area. The businesses and services of the Central Commercial District include many of those supplied in other types of commercial districts and in addi- tion thereto many services and facilities not available elsewhere. High land values, -:,limitations of space and public convenience jus- tify a greater intensity of use than in other commercial districts. CATION AND ACCESSIBILITY The two parcels of the subject property are located:on the south side of S.E. Second Street approximately midway between S.E. First Avenue and S.E. Second Avenue in the downtown business district o'f the City of Miami, Florida. Parcel A of the subject property issknown'as 1134SSEE. 26 Second Street and parcel B of the subject prop property Second Street. S.E. Second Street is a one-way street leading west in front of the subject property. It runs between Biscayne Boulevard to the east to N.W. North River Drive to the west. One half block to the west is located S.E. First Avenue which hbis a ontoetheyetraffic lrtery leading north. Approximately one h ted S.E. Second Avenue which is a one-way street leading south in this vicinity., One block to the north is located S.E. Firs Streetlwhich and a one-way artery running in a easterly direction. App one half blocks to the east is located Biscayne Boulevard which is a main traffic artery extending north through the City:pfMiamii from the down- wn- town business district. On the west side of S.E. Second Avenue app mately one half block south of S.E. Second Streetstemlocaatedttethe entrance and exit ramps of the Greater: Miami Expressway y rarnps for motorist coming into the downtown business. district' connect to S.E. First Avenue and South Miami Avenue. Approximately one and one-half blocks west of the subject. property, there is'an entrance ramp onto the Greater Miami Expressway System. The subject property is strategically located between the entrance and exit ramps of the Greater Miami Express- way System. Its location in relation to the downtown street network as well as the entrance and exit tamps of the Greater Miami Expressway System allows excellent accessibility to and from the subject property. 1 8 SURROUNDING AREA AND NEIGHBORHOOD TREND The block in which the subject property is located is bounded on the north by S.E. Second Street, on the west by. S.E. First Avenue, on the east by S.E. Second Avenue and on the south by the entrance and exit ramps of the Greater Miami Expressway System which connect to S.E. Second Avenue. Adjoining. Parcel B to the east of the subject property is located the Howard Johnson Motel, Parking Garage and Restaurant. The remainder of the subject block is vacant as of the date of this appraisal. To the north of the subject property on the north side of N.E. Second Street is located a large open parking lot. :On the easter- ly portion of this block there is located two high-rise office build- ings. On the westerly portion of this block is located an old two- story building dating back to the 1920's. South of the subject block and also south of the:entrance and exit ramps of the Greater Miami Expressway System, the land is vacant to the banks of the MiaMii River. According to an article that appeared in the.Tuesday, May 22, 1979 Edition of the Miami Herald, Dade Federal Savings and Loan Association announced that they would spend 35 to 40 million dollars to construct a 50-story World Trade Center on the vacant portion of the subject block which would also include both parcels of thesubjecti,property. This proposed World Trade Center building would be constructed on top of an 8-story parking garage which will serve the City of`Miami/ University;of Miami/James L. Knight International Center which is to be constructed south of the subject block and:south of the entrance and exit ramps of the Greater Miami Expressway System, Dade Federal indicated that it plans to use about 30 percent of the building for its corporate headquarters and the rest of the building would serve as a nerve center" for international business and trade, financial Operations and services. The article further stated that the City of Miami would build the parking garage and then lease the.`air rights to Dade Federal. According to the Sunday, June 3, 1979 Edition_of the 'Miami Herald, the new City of Miami/University; of: Miami/James L. Knight International Center will be constructed on the vacant tract of land lying south of the subject property block and south of the entrance/ exit ramps of the Greater Miami Expressway System. This development will consist of a $58.6 million Convention Center with a 19-story, 627-room Hyatt Regency Hotel on top. As of the date of said article it was under construction and scheduled for January, 1981 completion. The entrance- exit ramps of the Greater Miami Expressway, System are elevated at this point allowing accessibility between the subject block and the property lying to the south. Other proposed develop ments in 'the immediate area include a $116 million complex on the Ball Point property which includes a 35-story office tower, a 70.0 room hotel, two condo towers with 400-units plus retail shops and a parking garage. This complex was approved by the City of Miami Com- mission on May 24, 1979 and a ground breaking ceremony was held on July 20, 1979. On Thursday, June 21, 1979, both daily newspapers announced that Southeast Banking Corporation plans to build a huge office tower by 1984 on a block of undeveloped land fronting on the. south side of S.E. Second Streetlying between S.-E. Third Avenue and Biscayne Boulevard and lying on the north boundary of S.E. Third Street. This location is approximately one and one-half blocks easterly of the subject property. Accorrding to the news reports, Southeast Presi- dent, Mr. Charles Zwick-, stated that Southeast will build a building of from 700,000 to 1,000,000 square feet to serve as the bank's new head- quarters. It is anticipated that this new proposed building will:bein excess of 40 stories in height. According to the news articles, the building is to be completed by July 1, 1984. According to the Sunday, June 3, 1979 Edition of the Miami Herald, the developer of the:Sall Point property, Mr. Theodore B. Gould, has options to purchase the other three large blocks of vacant property located in front of the Dupont Plaza Hotel These three lots lie to the south, southwest and west of the block owned by the Southeast First National Bank. According:to the news article, Mr.. Gould may build a major new department store and:a garage to ease downtown's parking problems. These vacant lots are 10- cated only one-half block easterly of the subject property lying to the south of S.E. Second. Street and easterly of S.E. Second Avenue. In con- tinuing to quote from the same news article, it stated that the Columbus and McAllister Hotels are undergoing a halfa million dollar renovation.. Mr. Ronald Fine, one of the owners, plans to remodel the Columbus and keep it open. He is also remodeling the arcades of shops beneath 1pOth hotels. He hopes to replace both hotels with a 100'million dollar high- rise complex of retail stores and possibly a 600 room hotel. There - modeling isunderway;' major new construction. is at least two years away. An unplanned renewal of Flagler Street shops has been estimated to cost at least $25,000,000. As many as 200 new or remodeled stores have open- ed in the past two years. Numerous other developments are either pro- posed or underway lying to the north and west of the subject property. The same is true for the land which lies on the south bank of the Miami River extending along Brickell Avenue as well as the development of Claughton Island which is connected -to the mainland by a bridge that connects to S.E. Eighth.Street easterly of Brickell Avenue. The downtown business district of the City of Miami appears'to be on the verge of the biggest building boom since Miami's:present skyline was constructed back during the mid'1920's. The trend of the' area appears to be the continued redevelopment of this area with various new types of building improvements. STREET IMPROVEMENTS S.E. Second Street has a dedicated width of 40 feet in the immediate vicinity of the subject property. It is paved full width with asphalt. Sidewalks, curbs and gutters are in on both sides of the street. PUBLIC UTILITIES The public utilities available to the subject property include electricity, telephone, public water and public sanitary sewers. i 1 SHAPE AND SIZE OF LAND Parcel A Frontage on the south side of S..E. Second Street 50 Ft. Depth • 120 Ft. Area . . . • . . . .. ...• 6,000 Sq.Ft. Parcel B Frontage on the south side of S.E. Second Street . . 50 Ft. Depth , . . . . . ▪ 120 Ft. Area . 6,000 Sq.Ft• Note! The combined frontage of both parcels of the subject property totals 100 feet by a depth of 120 feet for a total area of 12,000 square feet. TOPOGRAPHY The area of both parcels of the subject property not covered by buildings is mostly level and at street grade. HIGHEST AND BEST USE Acceptance of the definition of Highest and. Best Use as "that use which, at the time of the appraisal, is most likely to produce the greatest net return to the land over a given period of time, provided such use is natural, probable, reasonably proximate in time arid legally permissable" leads to the development of the following facts and conclusions': Use of the land as an office building site is in legal conformance with existing statutes. Numerous office structures are located with- in the surrounding area and range in agefrom one that is under con- struction to a number that are in excess -of 50 years of age'. Accord- ing to the Tuesday., May 22,1979 Edition of -the Miami Herald-, both parcels of the subject property are slated to be acquired by the City of Miami as a part of an overall site to be improved with an 8-story parking garage to serve the nearby City of Miami/University of Miami/James L. Knight, International Center which is presently under development. In addition, Dade Federal Savings and`Loan': Association proposes to lease the air rights over the. parking _garage to construct a 50-story Uorld Trade Center. Dade Federal proposes to occupy approximately 30 percent of the building space and lease: out the rest of the building: for tenants who engage in international business and trade, financial operations and services. By reason of these considerations, the highest and best use of both parcels of the subject property appears to be their acquisition by the City of Miami as a part of an overall tract to construct an 8-story parking garage with the 50-story World Trade Center to be constructed above`by Dade:Fed- eral Savings and Loan Association. 11 ASSESSED VALUE FOR 1979 WITH TAXES BASED UPON 1978 MILLACE Parcel A Land Improvements Parcel B Land Improvements Assessed Value Taxes $ 112,350 18,831 $ 131,181 $ 112,350 15,293 $ 127,643 Total Taxes, for both Parcels $ 4,340 $ 4,223 .$ 8,563 I 1 1 s 1 1 1 i VALUATION APPRAOCH In'order to arrive at the estimated Fair Market Value of the subject property, greatest consideration has been given the Market Approach to Value. It is the opinion of this appraiser that both parcelsof the subject property are improved with structures that do not represent the highest and best use for each parcel. Any prospective purchaser of both parcels of the subject property would only be interested in acquiring the land and this is especially true when considering the adjoining property owner, the City of --Miami, as the potential pur chaser. Thus, the value of the land of both parcels of the subject property has been estimated by the Market Approach to Value which value represents the total value of both parcels of the subject property. MARKET APPROACH TO LAND VALUE OR TOTAL VALUE OF PROPERTY In this approach, the Market Data Approach or a comparative method has been used This method involves comparing, weighing and .relating such elements as size, location, time of sale, zoning and other pertinent 'comparison factors between similar properties under comparison and the subject property. The object of the Market Data Approach is:'to deduce from data of actual sales and current offerings to buy or sell, the amount at which the subject property would -sell if it were put on the market. This assumes a willing buyer and a willing seller, both fully informed with no abnormal pressure and the property being exposed in the open market for a reasonable time;. The application of this approach tends to set the range;in which the value of the subject property will fall and is generally considered a particularly: significant value estimate since it represents the value established by reactions of informed buyers and sellers in the market. The area considered most comparable to the subject property and the area searched for comparable sales falls within the following boundaries: Biscayne Boulevard to the east; S.E. Fourth Street to the south, Miami Avenue to the west and the back lot lines of the lots fronting on the north side of Flagler'Street to the north. All'of this area is zoned the same as the subject property and the subject property lies within approximately the geographical center of this area. A number of the comparable sales were improved with older improvements in a marginal condition and thus representing mostly land value. A summary of the sales follow within this report followed by a discussion of their characteristics'and value implications. 12 Sale No. 1 Legal Approximately the East 189.8 feet of Block 120, City. of Miami, Florida, according to the plat thereof, recorded in Plat Book 25, Page 75, of the Public Records of Dade County, Florida. O.R. Book: 6885, Page 189 W.D.: June 8, 1970 Grantor: Miami Caribe Investments, Inc. Grantee: 1-8-A, Inc. State Stamps: $12,000 State Surtax: $4,400 Indicated Consideration: $4,000,000 Sale No. 2 Legal: Lots 1, 4, 17 and 18., Block 118 North, City of Miami, according to the plat thereof, recorded in Plat Book B, at Page 41, of the Public Records of Dade County, Florida. O.R. Book: 9758, Page 22 h1.D.• July 28, 1977 Grantor: Miami Caribe Investments, Inc. Grantee: Argen-Florida Corporation State Stamps: $9,900 State Surtax• Indicated Consideration: $3,300,000 $3,630. Sale No. 3 Legal: Lot 36, Fort Dallas Part, 4/85. O.R. Book 9822, Page 49 W.D. Grantor:Magnuson Corporation October 5, 1977. Grantee: City of Miami State Stamps: $855 Actual Consideration $285,000 Sale No. 4 Legal: Lot 35, Fort Dallas Park, 4/85. O.R. Book: 9826, Page 2208 Grantor: Patricia Hotel of Florida,. Philip Keidaish and Burton Grantee: City of Miami State Stamps: $1,702.50 Actual Consideration: $567,500 Sale No. 5 Legal: Lot 13, Block 118 North, City of Miami, according to the plat thereof, recorded in Plat Book B, at Page 41, of the. Public Records of Dade County, Florida. W.D.: O.R. Book: 9982, Page 195 March Grantor: James W. Dickey 22, 1978 Grantee: Castropol Building Corporation State Stamps $2,025 State Surtax: $547.80 Indicated Consideration: $675,000 State Surtax: $313.50 W.D.: October 11, 1977 1 Legal: Lots 14 and 15, Block 118 North, City of Miami, according Sale No. 6 to the plat thereof, recorder? in Plat Book B, at Page 41, of the Public Records of Dade County, Floridaune 30, 1978 O.R. Book: 10082, Page 2081 Grantor: Florida National Bank of Miami Grantee: Moonstone Investments State Stamps: $4,350 Indicated Consideration: $1,450,000 Legal: Lots 11 and 12, Block 125 North,City ofoMiDami,CFFlorida, Plat Book "B', Page 41, Public Records Florida. �9.D.• July 20, 1978 O.R.Book: 10182, Page 1785 Grantor: Robert Revitz, a single man Grantee: Florida East Coast Properties, Inc. State State Stamps: $1,740 Indicated Consideration: $580,000 Sale No. 8 Legal: Lots 14 and 15, Block 118 North, ityCof Miami,PBook "B", Page 41, Public Record Z�1u May 3, Florida. O.R. Book 10408, Page 1051 979 Grantor: Moonstone Investments, M. V., a Netherlands Antilles Corp. Grantee Angelo Gugliotta, as Trustee State Surtax: $1,287 State Stamps: $2,290,000 . Indicated Consideration $2,290,000 Surtax: $638 Sale No. -9 4; Legal: The east 10 feet of Lot 16, all of Lot 17 and`the south 75 feet of. Lots 18, 19 and 20, Block 121 North, City of Miami, '! Plat Book "B", Page 41, Public -Records of Dade County, Florida. W,p,; August 2, 1979 O.R. Book:- 10471, Page 1603 11 Grantor: Claughton Hotels, Ina. Grantee:' Marwin S. Cassel, as Trustee gtate Surtax: $1,673.65 �, State Stamps $5,250 Indicated Consideration: $1,750,000 Sale No. 1 is a tract of land which is presently improved with the One Biscayne Tower Building. This building contains approximately-.600,000 -1 square feet. of office space. Attires which represented obsolete uses.., �j he time of sale, the site wAS:4M7': proved with several small structures leatesars This tract contains slightly less than one acre. This property most comparable to the subject property : andbtheeadjopedngilandnt8-story west and to the south which is proporty parking garage with a 50-story off ice boffiuildi g tO bewicOnontainemorewe the: parking garage. The 50 y than 500,000 square feet of area which is most comparablehtoathei600,000 square feet in:the One Biscayne Office Tower building.ing l� 110111111 Irmo; I�ti RPMIIIIIIIIII�III IE IlaII II m= IP WI &Ilia s�I I— CAST �'4� lIAi LER i L, Sale No. 1- 2 61•1•••• Date of Sale 6/08/70 7/28/77 10/05/77 11/11/77 3/22/78 6/30/78 7/20/78 5/30/79 8/02/79 IONMEM. COMPARABLE SALES CHART Sales Price Size Sq. Ft. $4,000,000 Irregular 40,236 $3,300,000 Irregular 30,000 $ 285,000 50 x 95 4,750 $ 567,500 50 x 95 4,750 $ 675,000 50 x 140 7,000 $1,450,000 100 x 140 14,000 $ 580,000 100 x 125 12,500 $2,290,000 100 x 140 14,000 $1,750,000 Irregular 18,450 Price Per Sq. Ft. $ 99.41 $110.00 $ 60.00 $119.47 $ 96.43 $103.57 $ 46.40 $163.57 $ 94.85 property to the west and south of the subject property extends westerly_ to S.E. First Avenue and southerly to S.E. Third Street. The total area of this property is approximately 62,848 square feet including_ th'e 12,000 square feet of the subject property. According to the Tuesday, May 22, 1979 Edition of the Miami Herald, Mr. Ronald Lipton, President of Dade Federal Savings and Loan Association, said the firm would spend 35 million to 40 million dollars for the 50-story office building.. This is in addition to the approximately $10,000,0.00 the City ibf Miami will. spend to build the 8-story parking garage beneath the'50-story office building. According to the Friday, January 12, 1979 Edition of the Miami News, this property which has since been improved:with the One Biscayne Tower Office building has been sold for a total of 49.1 million dollars. Sale No. 2 consisted of several lots in the block on the north side of East FlaglerStreet between N.E. Second Avenue and N.E. Third Avenue. Two of the lots front on the north side of East Flagler Street with one lot fronting on 'the west side of N.'E. Third Avenue and one lot on the south side of N.E. First Street. At the time of sale, July 28, 1977, this property was improved with the Paramount Hotel and Theater, the Bradford Hotel and a small building containing a restaurant. All of the improvements were in marctinal condition at that time. .Since the purchase, the new owners have demolished the Bradford Hotel. which fronted on N.E. First Street and the.restaurant building which fronted on N.E. Third Avenue, They have converted the theater and the lobby of the Paramount Hotel into a two level shopping mall. This mall will be extended onto the sites on which the Bradford Hotel and the restaurant building formerly occupied. The new owners plan to convert the Paramount Hotel rooms into office spaces. This site contains a total of 30,000 square feet which was the second largest to the largest, Sale No. 1. Sale No. 3 is located on the northwest corner of_the interception of S.E. Fourth Street with S.E. Second Avenue. This location has been considered an interception due to the fact that S.E. Fourth Street jogs to the south and then continues east of S.E. Second>Avenue This sale resulted from a negotiated purchase,by the City of Miami as:one of the last parcels of the overall site for the new City of .Miami Convention Center. -The City of. Miami obtained an, appraisal prior to entering into negotiations for the purchase. This sale has been included to show what the City of Miami was willing to pay in order to round out the site for the new proposed Convention 'Center. Sale No. 4 is located adjoining the northerly.boundaryof Sale No.-3. It is located on the southeast corner of the intersection of the exit ' of the downtown expressway with S.E. Second Avenue.' It is the sane size as Sale No. 4 but was improved with the old Patricia Hotel. The City of Miami obtained an appraisal prior to entering into negotiations to pur- chase this property. This property represents one of the last parcels, if not the last parcel, to be acquired by the City of Miami for the new proposed Convention Center. ) Sale No. 5 consist of one lot which is improved with a two-story build- ing located at 219 Flagler Fla ler Street. It has a frontage of 50 feet with a depth of approximately 140 feet. The improvements are old and in substandard condition with the exception of the first floor spaces which have been improved by the tenants according to their specifications. Sale No..6 consist ,of a tract of land containing two:50foot lots with a depth of approximately 1.40 feet. At the time of this sale, the property was improved with the old Ponce De Leon Hotel. An"inspection of this - property revealed that the improvements are in marginal condition.: There- fore, it appears that the ma=lority of the value of this property can be attributed to the land. Subsequent to the date of this sale. the hotel was closed and renovation work was in progress on the first floor., Sale No.- 7 consist of two lots located on the east side of South Miami Avenue at S.E. Second Street. This site has a frontage of 100 feet Pn the north side of S.E. Second Street and 125 feet on the east-side:Of s South Miami Avenue. As of the date of this appraisal, the prop y being improved with a 14-story office building which will'containapproi- mately 175,000 square feet. The major tenant in this building will be the U.S. Immigration and Naturalization Service Sale No. 8 is the same as Sale. No• 6. This sale represents a'value increase of $840,000 from June 30-, 1978 to May 30, 1.979• This is a time period ,Of 11 months and represents an increase of approximately 5 per- cent per month. As of the date of this appraisal, the hotel building had:been razed. Sale.No•' 9 is the most recent of all sales listed. It is located on the northwest corner of S.E. First Street and S.E. Second Avenue. The property is improved with the Urmey. Hotel which was constructed in approximately 1916. This building is approximately 63 years old and is most obsolete based on present day standards. It is the opinion of this appraiser that this sale represents land value due to the age and obsolescence of the improvements. It appears that this hotel was constructedof poured concrete. If this should be the case,'it would be most expensive to raze the hotel and haul away_the debris. Based_ on recent newspaper articles, the purchaser of.this property has no immediate plans for redevelopment. As previously discussed, the subject property is a part of a larger tract containing approximately 62,848 square feet. This total tract including the subject property is to be:improved with a 8-story parking garage with a 50-storyWorld: Trade.. Center Office Building to be,con- structed over the parking garage. The ostensible purpose for con- structing the parking garage is to serve the James L. Knight Inter national Center located to the south of the entrance -exit ramps of the downtown expressway system and extenaing.to the north bank of the Miami River.. According to the Wednesday, December 13, 1978 Edition of the Miami Herald, a ceremonial start of construction began on.this date as dozens of civic and political dignitaries watched the pouring 2 • -.1 T1 J1 of the first concrete for the foundation of the new $58.6 million project. The project, a joint venture, involves the city of Miami, the University of Miami and a group of private developers led by Earl Worsham of jiorsham Brothers Company, Inc. of Atlanta. The complex will include a 627-room hotel - The Hyatt Regency Miami - that will rise 19 stories above conven- tion facilities capable of handling meetings of up to 8,000 people, accord ing to James Connolly, Project Director of the City's Convention` Center. A total of 40,000 square feet of exhibit space will be available plus an additional 40,000 square feet of area for shops and restaurants,"Connolly said. Development of this 4-acre site is scheduled to be finished by January, 1981, according to Mr. Connolly. It is the opinion of this ap- praiser that this development, when completed, will give the downtown f business district a tremendous boost in business and tourism. The pro- posed development on the parcel of property of which the subject prop- M erty is a part will certainly complement the James L. Knight International Center to the south. According to the Tuesday, May 22, 1979 Edition of the Miami Herald, it stated that the proposed World Trade Center Office Building to be constructed above the 8-story parking garage on the parcel of land of which the subject property is a part will contain more than 500,000 square feet. According to said article, approximately 70 percent of this building will serve as a nerve center for international business and trade, financial operations and services. All sales are within close proximity of the subject property and all have the same zoning. All sales took place during 1973 and 1978 with excep-. tion of Sale No. 1. As previously discussed, Sale No. 1 has been included due to the fact_that it contains the largest land area.of any sale and is also improved with a 40-story office building and parking garage con- taining approximately 600,000 square feet. The tract of land of which the subject property is a part is proposed:to be improved with a com- parable type structure. Sale No. 2 was the next largest in size and had frontage on three streets. This sale together with Sales 5, 6 and 8.are located within the same block fronting on the north side of Flagler Street. Sales 6 and 8 were of the same property with Sale No. 8 taking place approximately 11 months after Sale No. 6. This sale showedHa price increase of from $103.57 per square foot to`$163,57 per square foot. Sale No. 8 represents a value increase of 58 percent over the Sale No. 6 or approximately 5 percent per month., Sale No. 9 is the most recent and is improved with a old hotel estimated to be approxi- mately 6.3 years old. While this property has a frontage of 210:feet on the north side of S.E. First Street, it only has a depth of 75 feet for the easterly 150 feet. As previously discussed, it appears that it would be:extremely expensive to raze this building for redevelopment of the property. Sale No. 7 is the same size as the subject property and is being improved with an office building. However, it is not a part .of a larger tract of land such as the subject property. In summary, it appears that the activity in the downtown business district of the City of Miami is gravitating south from Flagler Street to the north bank of the Miami River. This opinion is well supported by:the proposed development on:the tract of land of which the subject property is a part, development of the -James L. Knight international Center on the north bank of the Miami River and S.E. Second Avenue which development began in December, 1978, the proposed construction of a new office building by • the First National Bank of Miami on a block bounded.on the north by S.E. Second Street, on the east by Biscayne Boulevard,on the south 1 2, • by S.E. Third Street and on the west by S.E. Third Avenue and develop- ment of the Ball Point property which appears to be underway and is located easterly of the First National Bank building property on the east side of Biscayne Boulevard with frontage on the north bank of the Miami River and the west bank of Biscayne Bay. Sale No. 1 has been considered to be the most comparable with the exception of the date it took place-. While making an adjustment for time for Sale No. 1 but giving consideration to all other sales, a value of $130 per square foot has been selected as the estimated Fair Market unit value of the subject property. Thus, 12,000 square feet times $130 per square foot equals $1,560,00.0, indicated value of the subject property by the Market Approach to Value while considering the subject property to be a part of an overall larger tract to be improved with an 8-story parking garage with a 50-story World Trade. Center Office Building to be constructed above the parking garage. As to a value division of both parcels of the subject property, it appears that Parcel A has a slightly higher value than Parcel B. This is partially due to Parcel,A's frontage with the -adjoining property to the west and to the south. By having control of Parcel A leaves Parcel B by itself and thus reduces its utility of being able to obtain Parcel A for development with Parcel B. This judgment opinion has been esti- mated at approximately 7 1/2 percent of the total appraised value of both parcels ofthe subject property. Seven and one-half percent times $1,560,000 equals $117,000 which has been rounded to $115,000. The estimated value increment for Parcel A of $115,000is thus subtracted from the total appraised value of $1,560,000 leaving a net value for Parcels A and B of $1,445,000. By dividing this amount by two indicates a value of $722,500 for each parcel. The. estimated value of Parcel A is $115,000 greater due to its estimated value increment. J 1 1 1 J 1 J J CONCLUSION Having considered the property from the aspects as previouslymentioned in this report, it is my opinion and conclusion that subject to the limiting conditions set forth elsewhere in this report, the FAIR MARKET VALUE of the fee simple title of the property described herein together with the improvements located thereon while considering the subject prop- erty to be part of an overall larger tract to be developed with a pro- posed 8-story parking garage with a 50-story World Trade Center Office Building to be constructed on top of the parking garage, as of October 1, 1979, was ONE MILLION FIVE HUNDRED SIXTY THOUSAND DOLLARS ($1,560,000), which may be divided as follows as previously explained: Parcel A Parcel B $ 837,500. 722,500. $1,560,000_ 1 l 9 1 i QUALIFICATIONS OF JOHN E. MILLOWAY, M.A.I. REAL ESTATE APPRAISER, BROKER AND CONSULTANT Has been engaged in the appraisal and brokerage of real estate which. includes counseling clients as to their real estate holdings and analysis of proposed investments since 1951 and presently President of Milloway Realty, Inc., Miami, Florida. Graduate of the University of Miami School of Business Administration with a degree in Management. Completed the following Real Estate Appraisal Courses given by or. under the auspices of The American Institute of Real Estate Appraisers: Appraisal Course. I, Harvard University, Cambridge, Massachusetts, June, 1954 Appraisal Course II, American University, Washington,. D. C., September, 1956 Capitalization Course, University of Chicago, Chicago, Illinois, August, 1963 Registered Real Estate Broker. Member of the following real estate boards: Miami Board of Realtors Florida Association of Rea]. Estate Boards National Association of Real Estate Boards. Member of the following professional. organizations: American Institute of Real Estate Appraisers (M.A.L.) American Right -of -Way Association American Society of Appraisers (A. S.A.) International Council of Shopping Centers Society of Real Estate Appraisers (S.R.P.A.) Served. as President of the Greater Miami Chapter No. 71, Society. of Real Estate. Appraisers, for the year 1963. Appraised the following types of properties: Submerged. Land Leasehold Interests Industrial Properties Commercial Properties Properties for Condemnation and others Easements Hotels Office Buildings Farmland Shopping Centers 22 4 23 -2- Appraised properties in the following areas: State of Florida Counties Brevard Indian River Palm Beach Broward Lee Pinellas Collier Levy Polk Dade Martin Santa Rosa Glades Monroe Sarasota Highlands Okeechobee Seminole Hillsborough Orange St. Lucie Foreign Countries Jamaica, West Indies St. Lucia, West Indies Trinidad and Tobago, West Indies Grenada, West Indies. Antigua, West Indies Has prepared appraisals for the following Governmental bodies:' City of Hialeah Dade County Public Schools City of Miami Dade County Urban Renewal Agency City of Miami Beach Federal Housing Administration City of North Miami Department of Transportation, Dade County State of Florida Has prepared appraisals for the following life insurance companies: Acacia Mutual Life Insurance Co., Washington, D.. C. Equitable Life Assurance Society, New York, Federal Life Insurance Co., Chicago, Illinois Life Insurance Co. of Virginia, Richmond, Virginia Pan American Life Insurance Co., New Orleans, Louisians Sun Life Insurance Co. of America, Baltimore, Maryland Has prepared appraisals for the following banks: Miami, Florida Central Bank and Trust Company Florida National Bank and Trust Commercial Bank and Trust Company Company First National Bank of South Miami Southeast First National Bank Flagship First National Bank of of, Miami MiamiBeach United States Bank of New York, New York, N. Y. Bank of the Southwest, Houston, Texas Guaranty Bank and Trust Co., Worcester, Massachusetts Qualified as an expert witness in the following courts: Circuit Court of Dade County, Florida Circuit Court of Broward County, Florida United States District Court, Southern District of Florida United States Court of Claims Bank References: Merchants Bank of Miami - Mr. Joseph W. Armaly, President Peoples Downtown. National Bank - Mr. Roland Stafford, President 24 CONDITIONS OF APPRAISAL Unless otherwise stated, this appraisal is subject to the following conditions: Information as to the description of the property appraised has been sub- mitted by the applicant for the appraisal and is assumed to be correct; and from personal inspection and investigation is believed by me to be correct. Information is on file in my office, Greater Miami Federal Building, Miami, Florida, and is available to persons to whom the appraisal is issued. It is assumed that title to said premises is good, and there are no restrictions as to its use, other than those of record and zoning. This property has been appraised as though in responsible ownership and under competent management. Both the legal description and dimensions are taken from sources thought to be authoritative; however, responsibility for neither is assumed unless a survey by a competent engineer has been furnished. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales or other media, without the written consent and approval of the author, particularly as to valuation con- clusions, the identity of the appraiser or firm with which he is connected, or any reference to the American Institute of Real. Estate Appraisers, or to the M. A.I. designation. The appraisal represents my opinion as to the value of the herein described property as stated in the Purpose of Report. The appraisal is of the date specified. The appraisal covers the premises described only. The physical condition of the improvements described herein has been based upon visual inspection. No liability is assumed for the soundness of structural members since no engineering tests have been made. Analysis or unit value derived is not applicable to any other property, however similar the same may be. This appraisal represents my opinion. It has in no way been contingent upon the report of a predetermined or specified value, nor has compensation for making this appraisal report been contingent upon the report of the value of the property appraised herein.