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HomeMy WebLinkAboutM-79-0569CITY OF MIAMI, FLORIDA" Air Righte Over City of Miami Convention Center SLACK. SLACK & ROE. INC. T. C. SLACK, S.R.P.A., A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A., M.A.I. 3 T. W. SLACK. M.A.I. - A.S.A. • 7•,2 7" /' Oi(/ 7 9- 6-6 9 Sack, Sack no ,oe, inc. ...e 1620 W. FLAGLER STREET - MIAMI. FLORIDA 33135 PHONE 643.0443 IHROWARD PHONE 763.8033 August 22, 1979 City of Miami, Florida Office of Risk Management P O. Bar 330708 Miami, Florida 33233 Attention: kr. Donal Stewart, Property Manager Re: Appraisal 079288 Gentlemen: Pursuant to your request, I have carefully Lt,atea th6 property and propoeed improvements comprising the Convention Center which is being erected on a parcel of property located east of Bauder Fashion College, west of SE 2nd Avenue, south of the I-95 Expressway to the River, Miami, Dade Cruntp, Florida. I do not have any present or prospective lnterest 4n this property. I have estimated the fair market value, as of April 20, 1??8, of the air rights of this proeect, as requested. By reason of my investigation and by virtue of my experience, I have formed the opinion that the total basic rent is: THREE HUNDRED THIRTY-SIX THOUSAND DOLLARS ($336,000.00) Your attention ie invited to data and dieaueeione foticwirig which, in part, form the baeie of this conclusion. Respectfully submitted, TWS/da gy4a( THEO ORE W. SLACK, MAI A SA waddles, 41.Maields, Arnldo* ea eaaaamedat TABLE OF CONTENTS. Summary of Important Conclusions Certificate: of Appraisal Purpose:of- Appraisal Conditions of Appraisal Certification Definition of Air Rights Subject Method Terms Property f Appraisal Lease and Agreement Analysis ofConclusions Laventhol & Norwiath Projections Page Analysis "of Cash Flow Projection Valuation -,of Basic Air Rights. Comments on Analysis of Cash Flow Projection Comments on Vaauation of Basic Air Rdghte Comments on Comparable Data. SLACK, SLACK & ROE. "INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK, M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. a 2 3 -8= 1;0. 1-2 6-:29. 0-`31 2-`.33 Quali fieatione of Appraiser` Diane by Fercndino, ;Grafton, Spillis and Candela Arehitect'e< Rendering Comparable Land Data Appraisal Request Letter from City MMiari SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. SUMMARY OF IMPORTANT'CONCLLSIONS Estimated value of 156000 square feet o land @ $47.25/Eq. Ft. - Estimated value of .basic a special" air..". rights - 3. Estimated basic annual 4. 5. 6. Estimated annuaZ rent @ 10%, net rent for ''shell-dpaoes' Total basic rental - Fair' market rent from hotel'after reachin' $35,000,000 in gross sales ".ie3% of" gross income from"room@, food and beverage income. 7. The entire project should make a profitable r the developer. age; 371, 000 $1,992,000"'. $189,200 $146,;895" $336", 000 investment' No eoonomic analysis of the convention center has been made,but the concept plans, etc. constitute an important. and financially sound investment for the City of Miami. SLACK, SLACK & ROE. INC., T. C. SLACK. S.R.P.A., A.S. A., M.A.I. T. W. SLACK, M.A.I. -A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. Eatiii:cited Value of Basic . and St7eciai _ . . , Aii,..RI.ghte ' :- - . . , . - . . . . Estimated.Tial$6 of ..r Hsheii so-ar.oceI, . . - . ' . 68 950 ..._ 1 4 T9tq1, Value $3 360 950 , . .. , 10% net. on'• 9.3,360 ,9.50: .,- 9336 095 , , , . . . ,• , . . ' . -' TOTAL ..BA SIC RENT . - . , . . . APPiailiat Da'-'! - Afril.,'.E1).•.' /978. 61,36 000 1Li= keipeubnlitted, ,‘"e:dted,6 TREODOI?E W. SLACK, MAI, ASA SLACK, SLACK & ROE. INC. T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. T. W. SLACK. M.A.I. A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. Page PURPOSE °OF THE APPRAISAL ProposedLease and Agreement between the City of Miami• Miami Center Associates,Ltd., as amended through August 1978, the purpose of this appraisal 'is;to evaluate ail . the rights of the developer under this lease "(exclusive the renewal term),,of April 20 1978. resent' value. of all" of the rights of the developer under this .tease (exclusive of the renewal term set out in Section 2.2) to be determined by appraisal of two independent, fully qualified appraisers.. Present value shall be determined as of April 20, 1978 and by agreement shall not be lees than 81,750,000. The estimated rents are classified as follows: Base rent for the air rights. b. Additional rent to be paid for the "shell spaces". . Additional rent based upon gross sales as set forth in Paragraph 3.2 of the lease. (See page 15 of this report.) SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE. S.R.P.A.. M.A.I. Page 2 LIMITING CONDITIONS OF APPRAISAL' ces pthesrwise etated, this appraisal is subject to the following ..^ndi *tone Information as to the description of the premieee, as to the physical features of the property appraised have been submitted by the purchaser of this appraieal and assumed by us to be oorreot; and from pereonat inspeotion and investigation, ie believed to be correct by us. Information ie on file in our office, 1620 West Inagi.cr Street, Miami, Florida, and is available to pees,: or persons to whom this certificate is issued. Responsible ownership and competent management are aeaured. It is assumed that title to said premises, ie good and that there are no restrictions as to its' use; and that the description of the premises correctly designates the boundary lines. No survey of said property has been inrpc tcei by the appraisers and the appraisers have made n.r _y of the property and aeeume no responsibility in ennngotion with such matters. The appraisal is of the date specified and oovere the premises described only. Neither all nor any part of the contents of this report shall be conveyed to the pubZio through advertising, public relations, news, sales or other media, without the written ooneent and approval of the author, particularly as to the valuation oonelueione, the identity of the appraiser or firm with which he is connected, or any reffrenoe to the Amerioan Institute of. Real Eetate Appraisers or to the M.A.I. designation. The vatuee for land and improvements as aontained in thie report are constituent parte of the total value reported, and neither is to be used in making a summation appraisal by combination of values oreated by another appraiser. SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE. S.R.P.A.. M.A.I. Page 3 Either is invalidated if so used. The current purchasing power of the dollar is the basis for the value reported. The appraiser herein, by reason of this appraisal, shaZZ not be required to give testimony or attendance in court or at any governmental hearing with reference to the property in queetion, except as agreed upon. This appraisal is presented as a complete, bound report and may be considered valid only so long as it is presented in its entirety and aZZ pages listed in the Table of Contents are present. The information identified in this report as being furniehed by others is believed to be reliable, but no responsibility for its accuracy is assumed. SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. BRUCE C. ROE. S.R.P.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. CERTIFICATION 'age I have made a oarefut study of the subject property an b .-e percona1 Zy inspected same. I 'hereby certify that to the heiipf, tha upon which ar' bated, bias beat statements of fact contained in knowZedge an thie'appraiea report, the analyses, opinions and oonotueione expressed herein are true and correct. I have no personal interest or with respect to the subject matter of this appraisal report or the parties a bone: • report. involved. I have no present or contemplated future in thee real estate which is the subject of this report. This appraisal report sets forth all of the limiting con (imposed; by the terms of my assignment or by the signers), g theanalysee, opinions and conclusions contained in this No one other than the signer(s) prepared the analyses, opir i 'ns and conclusions concerning in ti.c appraisal report. Thie appraieaZ and ie eubjeot to the requirements Ethics and Standards of Prof tuts of Reat Estate Appraisers 0 Realtors. real estate whioh are set forth report has been made in conformity with, of the Code of Professional esaionat Conduct of the American Insti- th"e:NatianaZ Association of SLACK. SLACK & ROE. INC.; T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK. M.A.I.. A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. 111111111111111111IIA1I1U■UIIIIIU right Page 4 .DEFIA'•ITION Orkin RICATS:`• Air rights 'are real property coneieting of the epaoe above the earth 'e surface. Real property 'i`i ordinarily subdivided by vertical planes; ownership of the land, property, and space withinthe planes, legally 'delineated; extende from "the center of the earth to the heavens" However,- land, property and space can be legally subdivided by horizontal planes, ae well. Air righte become, an independent unit of. subdivision.; hey real property' through such a horizontal T comprise a portion of the complete fee rights in theland, mars be sold or leased, -an may relate either to public or private.: land; areas. The air apace above any marketable. `Even the varioue stories figuratively elzced from the segment to e conveyed" is property 'be divieible and a ekyecraper may bE whole and eotd separately,. properly described. Above definition from Encyclopedia of Real Estate Appraising, Third Edition, "Prentice -Hall, Inc., 1978. SLACK, SLACK & ROE INC. T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A., M.A.I. T. W. SLACK. M.A.I. • A.S.A. iuui. i1uuIIIIuuuiuIUUI 110 center report Miami (I-95) Page 5 SUBJECT PROPERTY The subject property coneiete of a convention tooae t d as indicated on the p1at at Addenda B of thie. 1st Avenue,. with frontage on NE 2nd Avenue and extending from the River to the . downtown distributor of the North South Expressway on the north. The weeterly boundary ie SE Bauder,:CoZZege detail' to cone of net of the in part, and the property existing land as estimated by the Project Director, contains approximately 156,000'square feet of area which is not to inolude the eo-called Patricia Hotel site on 2nd Avenue. Inc Zuded in the four-story` base bui Zding wilt be, meeting rooms, offices, storage` and; support.; facilities to be operated by the City and, in addition, the University of Miami wilt. occupy approximately 20,000 square feet, net of corridors and support facilities, which it wiZZ operate as a conference center. The convention' center hotel ie analysed in great. in a report from: Laventhol & Norwath, who were employed duct': a market study for the center and prepare projections income to be derived by the City for the first ten years hotel'e operation. In brie the SLACK, SLACK & ROE, INC:. T. C. SLACK S:R.P.A.. A.S.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A.. M.A.I. .kLliYc.�9�;�'•PzU-4ci,.Mai:e:lpct6R%;:_:.:���41:�';a"i Page 6 The Univereity of Miami Witt contribute 52,500,000 towards the project. On Page 7 will be found a schedule" of the various component 'parte Area =Recap Source: of the entire project. Level` Feet. Croee .'Square Feet Areas 9.►: 0" 26'6" 36 46.. 61' 6'► 4" ►►: 134,240 91, 000 3,600 87,250 000 83' 0►►) . 590 110' 0 ")Gombzned Total 391,680 8, 470 Total 400, 150 erendino, Granton Spit Zis, Cande Za SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A., M.A.I. T. W. SLACK, M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A.. M.A.I. Eaope Page 6A The center will be comprised of the following elements:', . CITY OF MIAMI CONVENTION CENTER 1. 5,000 Seat Auditorium 2.. 30,000 Sq.Ft. of exhibit area (including ballroom,. prefunction, promenade and adjacent meeting rooms and exhibit area). 3 Two S00-seat meeting room (Ballroom). 4 One 190-seat divisible meeting room. Two 160-seat divisible meeting room. Six 25-seat meeting roome. 5. Eight 30-seat seminar rooms. • Uh'_ V::RSITY OF MIAMI CONFERENCE CENTER . One 500-seat auditorium (sloped floor). . One I50-seat auditorium (sloped floor). Z. Too 76-seat claesrooms or exhibit area. 1. 1nree 45-seat seminar rooms. S. Technical and audiovisual department. Celf-instructional library. 608 ROOM HOTEL . 1,000 CAR PARKING GARAGE (Now estimated 1,500) • 35,000 SQ.: FT. OF RESTAURANTS, SHOPS AND BOUTIQUES SLACK. SLACK & ROE. INC.. T. C. SLACK, S.R.P.A.. A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A., M.A.I. T. W. SLACK, M.A.I. - A.S.A. CITY OF MIAMI CIVIC AND CONVENTION CENTER AND PARKING GARAGE Facilities Looati_ Theatre/Auditorium - Total Levels Section 1 .2 3 Meeting Rooms; A - Total Section 1 2 3 F - Total Section 1 2 C - Total D - Total E - Total F - Total Sixe (1) Sq. Ft. apace t Page 7 50 000 '(Approx.) 5,000 Seats' 17,500 1,750 20,000 2,000 12,500 1,250 Level 3 2'2 0 225- Seats 850`":85 550 55. 850 85 Levet 3 98C 483 483 Level 3 483 Level 3 483 48 Level 3 483. 48 Level 3 483 48 Lobbies/Office/Support Levels 1,3,4 15,950 N/A Parking Garage Separate Building N/A 988 aces,;` Garage Walkway 14,000 N/A_. Retail Stores N/A - Not Applicable (1) Source: Ferenndino, Grafton, ZZZ s, Candela SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK. M.A.I.-A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. IUI I1111111111111U111UIUIIIII 1 Page 8 It will be noted that the parking garage to bE %^,fated north of the expressway, but connected by an underpass, aeeltened to have 988 oar spaces. I understand that there will be'approximately 1,500 oar epacee and that a<thirty -etcry building is to be constructed tin the air rights over the garage ,and in this office building will be located a World w'radt Center operation. The whole complex north and south _of the expressway,'_ will preeent''a most unique civic project. In my opinion, the preliminary plans drawn by Grafton, Spillis and Candela, Architects, Engineers are veryattractive and appear to be efficient. F'erendi`no, and Planners, An unusual feature is a triangular space at the southeast corner of the property:which se under an archaeological restriction ae a possible site of Indian mound valuable relicts Thi. to '.,e.landscaped and will include tun is a pool and .greed. wz l h not interfere `with any digging th,�y take- place. area is deck, which it operations, should The hotelis oriented to take advantage of the River and Bay view and a clause in the air rights lease protects • them againet encroachment with • interference •with Ziaht, air and view. SLACK, SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK, M.A.I. A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. METtOD OF APPRAISAL. In atternptine to arrive at Value o f the land, in the appraisal c I am well aware Page.; 9. the " Fair Market,': we have drawn .upon our knolJtedge and experience` many paroete of downtown bueinese property. that the immediate area, there are or no sales which are truly which derives benefit from propertiee formerly: held by recent appraisal f study of sales found that, of fro per Street; properties, In. I have month during that comparable to the eubject'property assemblage' of a number of individual several private owners. In; ' oproperty north of Flagter` Street, 'and re sales from 1975.to`November, 1978 and generally, the property had increased at, a minimum period and in t a much higher rate.: the included' eales opinion ofthe value made a the caseof;Ftagler: section entitled Comparable Land Data, which are of some value in forming my f the 'subject. site.: This office made an appraisal for the aoquieition of``the subject 30, 1975 and.I have applied a forming this valuation pf the land. As to the sites as of July time adjustment as an aid to method of evaluating the basic rent (air rights) and all other rights of the developer, together with the additional rent, as called for, I have carefully studied the proposed lease, as well as the `plane of the project and the analysis by Laventhol B Norwath which covers economic factor. SLACK, SLACK & ROE. INC. T. C. SLACK, S. R. P. A., A.S.A.. M.A.I. T. W. SLACK. M.A.I. -A.S.A. BRUCE C. ROE, S. R. P.A.. M.A.I. the area Pape 20 a�u`ch as population figures, econora:c-trendc, Zocal mass tran81,t prospcete and a study of tourism. In the main, ;'my own opinion agrees: With the conclusions of the Laventhol `& Horwath.report. The reeurpence of value and general business in`downtown Miami, due to the= cooperative efforts ofCityauthorities, as well as civic � organizations and private enterprise, has 'been, extre7reay stronp and a compZstoreversal of the 1975 and 1976 conditions. The strategic location of the subject site, in my opinion, that this can property orms an nideal location for the project and L,feel considered the highest and beet use fort; I am . we l Z aware of a number ;of pro ecte, particularly in hotels, which areon the drawing boards o under way.' Because .<of the unique character of the: Improvements" and the attraction Convention center,'. rom t e he University of Miami project, the World Trade Center. and `the conference center,' I feelthat competition will not be a serious factor and that the economic projection reasonable. Laventhol & SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A., M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A.. M.A.I. Horwath is :TERMS OF LEASE AND AGREEMENT:: Pape 11. I am; briefly outlining herewith the terms o'f the proposed tease; which .is to run for a Period of foray -five'. years from the date of Completion, with a forty-five, year d this t theare and certain obligations. Perhaps the terms is in the lease itself; however, of the the of RIGHTS 1 salient factors which I wish to comment upon because feet upon the values arrived at herewith. OF THELEASE The Lessee has the right and 'obligation to construct a first quality hotel to contain not less than 250 rooms within the .air apace over the convention center, as delineated in accordance with the plane and specifications to be approved by the City. (I understand that the Hyatt Regency Hotel is to have 608::rooms.) The said hotel is to be erected in the space as outlined :on the exhibit at Addenda B, deeignated Hotel Tower. This air space shouldinclude: a swimming pool area and a pool deck, which has been estimated by .the architect ae ?O6O square feet.' SLACK, SLACK & ROE. INC. T. C. SLACK, S.R.P.A., A.S.A., M.A.I. BRUCE C. ROE, S.R.P.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. Page 12 FIGHTS;; OF TTIE LEASE - Continued 2.. In.`Section 29 of the propoeed lease, "the Lessee has the right to the quiet enjoyment of its air, l ghtf' and view over the remainder of the oonvention"center property, which ae not inoiuded in the ;''footprint"' area. The evaluation of these air, Zight an view righte is very 'difficult to estimate. Since the conetruction.of the four -etort'"convention center contains a theater, meetng.rooms and other from a practical' standpoint i't would not be feasible' to -construct a y; additional towers on facilities, the building tt a l-f ` which might interfere with these rights. In oadition, the eoutherly eopoeure,is protected from. encroachment of these righte because of its frontage on the Miami River and on SE 2nd Avenue by the Avenue iteetf. The 18,000 square foot triangle at the southeast digging area" structures corner, which is included in the "ecological already restricted against any large it is undoubtedly necessary to have ifs While tegat protection from any encroachment, it w. utd appear that the area needing this protection is quite • small. SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A., M.A.I. T. W. SLACK, M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A. ■uiuiui._IIiuIIII.II00. RLh:a,Wir •. RIGHTS OF TRF LEAST Continued 3. Page 13 The Lessee has the right to all essential easements and other..rights within. the convention center neoeesary for the construction .and .maintenance of the hotel. The Lessee hae the right to ingress and egress through and across the Excepted. Premises, to and from the. hotel, including Zobbiee, elevators, stairways,ee The Lessee shall have the use of support and use of ali structures and necessary. mechanical faciiitiee in the Excepted.Premiees, Qe described in Paragraph 1.6 f :the. ease. The Lessee ie to have the use by agreement of certain parking spaces in a garage to be erected in accordance with Section9.1 of the lease. (This Section statee that at leaet 1,000 oar spaces shall be constructed inthe garage,but will actually be approximately 1,500.) In my opinion, the garage and World Trade Center building, north of the expressway, are aft inseparable part of the entire complex. SLACK. SLACK & ROE. INC. T. C. SLACK, S. R. P. A., A. S. A.. M.A.I. T. W. SLACK, M.A.I. -A.S.A. BRUCE C. ROE, S. R. P. A. OPLIGATIONS OP THE LEASE 1. The Lessee is to pay a basic rent based on Pair Market Value for the air rights in whtch the hotel 1.8 be built. This is to include the right to quiet enooyment of the atr, light and View over the Unfinis h ed areas, k own fixteunrtedzenand equ .tia ore ane abiytoh:bhteeeld°°espP acloeps(e sdr ee. ptulaarheew 11 ignn: enig9) approximately 97,930 square feet. comprise the addt cony The Lessee ie to !ay a fair rent for the °he" spaces", taking into consideration that the greater part of the cost of finishing, equtpptng and furnishing 1:8 to be at the Lessee e expense. The Leasse 1.e to pay aminimum of $1.'750,000 ae base rent, in advance' covering rent for the entire forty-five Yh ears of the lease. T 20, 1978. 's base rent, by agreement' was determitzed a minimum ae of Aprt Should the appraisal of this base rent exceed this amount, the excel), is to be paid over the forty-five year lease in ninety (90) equal, semi-annual paymente. It is my opinion that this sum of $1,750,000 is the equivalent of $177,434 per year. This is the annual t:nstallment to amortize $2,750,000 in forty-five years at tOL!AEeir. LACK & ROE. INC. T. C. SLA _.K. S.R.P.A.. A.S.A., M.A.I. T. W. SLACK, M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A.. M.A.I. 0 - 24,000,001 .- 30 000 001 - 35,000,001 OBLIGATIONS OF l'RE LEAS", otitint4ed 4. The Lessee is to pay cidditiottai rent ae follows: In addition to the bat;e rent, the developer shall pay to the City additional rent based upon gross sales computed as followt): Aclaticmal Rent as a Page 15 • DOilarVO/iirie:of'CrOss-•Satee •:PerCenta e ofGross Sates ••-' • ,•,, , 24 000 000 30,000,000 35 000 000 - 50,000,000 0 1.25% 2.00% 3.00% I gross sales exceed $50,000,000, the developer shall pay to the City adclitional rent in the amount $1,500,000 subject to.upward adjustment for equivalent increases in the Consumer Price Index the City of Miami, or such other comparable index which may be in effect from time to time if said Consumer, Price Index is unavailable, using the Index .for the first year, in which gross sales exceed $50,000,000 as a base year. "Gross Sales" shall mean on an annual basis: (1) Gross room rentals, charges or other revenue therefrom; (2) Gross food and beverages sales or services; (3) Excluded from Gross Sales shall be commissions paid on room rentals at a rate' normally paid SLACK. SLACK & ROE, INC. T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK, M.A.I. - A.S.A. BRUCE C. ROE. S.R.P.A. OBLIGATIONS OF THE LEASE - Continued Page in the operation of a first-class hotel.:; Each semi-annual payment of additional rent shall be computed on estimates of annual gross ea es ae determined by developer (with the final sum determined in accordance with Section 3.`4:) Zees the amount of Base' Rent paid the. City pursuant to Section 3.1 (b) for the applicable period.. (5) Payment of additional rent shall be deferred if there are no funds; available to the. developer (4) 16 after the payment of principal, interest and participation ,interest on developer's first mortgage. That portion of the deferred.; additional rent °shalt accrue 'with: interest to % above the rate paid by the equal City on its Revenue Bonds issued in connection with construction of the convention center. The aggregate amount of such accruals of unpaid additional rent shall be due and payable by the developer to the City at the end of each tenth (loth) year and at the end of the forty- fifth (45) year after the hotel first opens for business. Further provided that if there are SLACK, SLACK & ROE. INC. T. C. SLACK. S. R. P. A., A.S.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE, S. R. P. A. OBLIGATIONS OF THE LEASE - Continued (5) Page 17 any funds, ..., , in wer and there continued avai table to the deve topderaolifttiecri payment of prinotipapberte+fiz,eeett maonzetgpet9e a patiott ienxttelteet unpaidcornodrevayeeeco:rreJd additipendeaeatiadrveanI'tunpaidiafbo ire aasenhcYart4i el d .811 h fun priorde year 8 814C be applied to the payment o.i. dditional rent' 5. The tructUra Pi .on center, Lnee::esea je to pay °1_.',5°t°177hiee°0°h0°.anfiooraltsheeice:8ttriocfamlitishaneeneds,t4ff.joient in re P 1 umbeianrgY e8 0,2 V en t 1, .which size and capacity to serve the demieed P would not be incurred by the City, but for the hotel. This is to be paid ae the work Pr°gre . • The Lessee ie obligated to construct a hotel, all prevtously outtined herewith, fully stocked, adequateZy capitalized and ready to commence within the time limits provided within the Zeczee. The hoteZ shall be substantially in accordance with the plane herewith. (Addenda B). SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A., M.A.I. T. W. SLACK. M.A. . A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. • GA. TiONS OP THE LEASE Continued - ' • • • --.' - ' --• — - —:.----- -, ,---... ...., ..., ..,..- .:.-: ..,--,., • -. :,,,,, .., --,....,,,•,, .„.•....,•,...: ,...'?:.,'•..':-::.::.it.'..,••••.-oii4'.-.;,z...-;:p'e.':.:-;:the,•;....:O.....1:,' eto....4:.-,0,..n-::-._,.-01.-::-...../4:,:•:'.c.f..,,.:.•,..i......--:::::.,•:'.#,::::.....,•:....:•,,:,..,..-,_,.-.,..,...,,......:.::...:........., build,.,..._.,......,.: the h ' :::-.• .--. ' •••• --:-.: :':: 6 oiiii eit:“eiti ::1.e-Peri.t:e*;.:-:-..,.--rei 4 •:;..'O-.._':: ii 4,,...Pi;i.1*:-..::-........:-.-s:,:'0.,..,.4...1>i•::*:,...1......,.....7:..'.,:l.-,::...,.-,1.'..:•::.„:•.,,,..:-....:.•:•:,:::,•-....,..:.:,;,....,.::::-.,-.....•.....-....•:. .. , . •. • . ..-, ..,,,• ....y. .,....... ..,..y „...-.• .„.........2,...„..._.:,.......,,......,..f.: ...-....,...••:...,... ...., ...._,:. _.- -•,y.,...................,..,..•., -.•......." „..:,..;.,,,,,..,.... ..,-,.•.:..: ...,:.,..........,...., .........:......:., ....h ot.-:'difur...'allilie-ei,.-.:0ii*ei.:-.:1::eci4'..,:;:to--.:.:0*;;;--::. o.-.'..•- iie.::.-:pe 0.0 e.ej::;,..::::::::::::::.:•:. . • ...•—• ,.... ,.... ,,-,. - „y...........i.s..,...„ •-•: -::::,•,..-:.•••:....::., -.„..„...........„...-::.:.;.„......:,,.;.;:-.,. -....„....H....,.,.,:-...,... ,-...;-:.,.:.:-....„.........•...i.,....•...........y..:...-.....,,,.•.;....,,..:y: ih‘...,8,,-.•ey.--:•60:*01;o#it:•;--0*:..':-.:60*;;:":•::,.iit6 14is4.,,:..,•;0i::-:ei;zoi,:i:rik:4:..,....,:.::::,..,:.,.:::,:i.:...:::.-,•:.,,....•,...:.•, - er the ',,,•.,•:-,:.':':',..'.•,'fat.:hdi:l::::':'''d--;,-i:eoPsi'e4Oe;;::.a:'h•;:.',...fotfjit..'i:*z'-:-t.....,:''.''-Ee-':'r-"'-..'C::4it4.....-,:t::.4e:,.:...i.'....'.:,..-.r':'1';whftl:C:.,. 17h-4',..,.'...'.,:,...''.;4'''1''..'-..,:-8..,,....'..,q9the..--'',:°:''1.,P-fqP9,.',..,....g.,...-'_...e:;:.-,1,...‘..-'9'''','..17s1''-l'..-.''..'.-...9e,,','...,...--.'..'::,...,,'...6'Y''..:,'',.-..,....,.....,',,...'..,,.',..,.'''',,:,,.-....-.'.',..''...,.,..1,.::1.:,.'....:1::''.....,.-',.'.'-.',;,.,.',,..,''....,'",:'-....,,'':.:'.,.....,,....'..,:,...''..'.i.'...,..,,1:-...,..',..-,',.''....'..,...',.'.:,,..-,...'....,... . .. :::.::-.-....iii, d11::HiiiOe..: *i'd.::',: operate:.,.'....•... as -.-...... i::;:•:.: 3,71,, re' s,, 7,-..q.,:.,.410-'::-..::•:,,.h,...'",i,: *0.::;:i',..-..,:,:t,;.:.:.,:i!-,.:::--,..-- ,...-s. •-•••.••• .•• .-. • -....•- ,•-..•,..,„ ..,-..- : .,....,,-..... ,..„, .......::::,,,,..,:,.........„..,,,.,.-„„.,,,y.....„-,.,.„,,,.......-.........„.,„„•.,...,-,,„..,„..,....,:,...„.._,..„; , , .. , .....,,..,... ..,. - -- - - ' .-- •-- - - -----'-'-• - - • - ' .- - - •-•- •-• -- .. • .- - - •- .-• .,..,..,-,...„-,--...,-..---„:-..,-,. -., - - ' ---- -' .- ---•-'---•----'••••,-.--...-:,---,--,-..•-•::•.,-,..,•--_,,,,-:.-.--••,--:•••••,-.-,-:-:--...;,--,,:.,..:•:,-. • , -,•.,-.:., -...,..,•--,., „,-.-•.,..:.:,,, u...„.,...,...,,,...,,,.....,....„,....:..::..........,.:::_, • • , .. , ....,... , , ,, • - -- .... . , , , - - • . ,,., - - - - -: .'.•••,--_,,,,....,..i.„.,:„...,„.,...., ,, ....-,•.,.,....„....,........ , - . - •• -.- '-'.. ...... ,.,. , , ' '-- - ' ' '------• - -.:------.i---,-,:---:...,::;...,...,,,,.._,.,,,.,.,,,:,,,, ,.. --- --.:-;',:•-..:-:,,-.-,:2,-....- SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. T. W. SLACK, M.A.I. - A.S.A. BRUCE C. ROE, S.R.P.A., M.A.I. Engineering/Maintenance General Storage Men's 4 Women's Lockers Toilete Housekeeping Laundry Rooms Personnel/Security Receiving/Personnel Accounting Kitchen/Employees' Cafeteria Hotel Offices Trash Room Food Service Corridor Ballroom Storages Liquor Storages/Cooler Main Ballroom Pre -Function Retail Front Desk Lobby Lounge Public Toilets Coffee Shop Kitchen Oyster Bar Restaurant Palm Court Additional Hotel Space Number ae Shown on Exhibit "B" of Lease 1 2 3 6 7 8 9 10 11 12 13 14 15 26 17 18 19 20 21 22 23 24 25 Intended Purpose Note: Pleaee refer t of the Zeaee. Page 19 .Area: /m , c0 Ft. 2, 461 2,773 2,473 3,048 4,510 280 2,555 1,380 8,674 3,840 384 629 2, 349 651 11.'249 3,700 24,354 2,169 1,968 1,080 3,049 3,322 1,517 5,747 3,770 97930 f this report for "Exhibit B" SLACK. SLACK & ROE. INC. T. C. SLACK. S.R.P.A.. A.S.A„ M.A.I. BRUCE C. ROE, S.R.P.A.. M.A.I. T. w. SLACK, M.A.I. A.S.A. Page 20 ;1 ICATIONS OF THE LEASE meetirig rooms and e0'; fort 00n0ention oenter buitdin SLACK. SLACK & ROE.` INC. T. C. SLi CK. S.R.P.A., A.S.A.. M. A.1. T. W. SLACK, M.A.I. -A.S.A. BRUCE C. ROE, S.R.P.A.. M.A.I. which ANALYSIS OF CONCLUSIONS Page 21 As to the 'e'conomi.c aeppete of the "hole l " on. additional ent wilt be based 'up"on "gross 'ea tee, "ae outlined in the lease"(Paragraph 3.21, the submit herewith .a ten=year' projeetion of income 'and expense ",(:Horwath 608-room Hyatt Regency• Hotel. for a projection It ie to be. noted that the Laventhol & Horwath includes conoeesione, minor operated departments (net) and rental income. The definition of gross sales in the lease includes only gross room rentals, food and beverage sales the or service. • The percentage Zeaee, 2,8 r.eproduced'here` gross sales, ,as defined 2. r convenience."- The lease for a percentage. -of -gross " Sales' on Page 15 our lease calls ana;tysie. Note that there ie a"oap":at"$50,000,"000 annual;,gross, sales:, subject to adjustment in the 'Consumer Price Inde• x of Miami. rentals of 'LaventhoZ 8 . Horvath, adjuete'd as `to both income and expenee,:'reeutte ae and f the City Adjueting the gross" sales t-o'include only room cod and beverage sales' and eerviee, the projection a ;?% inf Zatz n°"', oaZows t SLACK, SLACK & ROE. INC. T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. BRUCE C. ROE. S.R.P.A., M.A.I. actor T. W. SLACK. M.A.I. - A.S.A. Inurncrn WYATT PFCEKCV JAlltS L. IfiltcH1 evert:on r int$111. CI /tip CI.3 1.0 Wit: rnelECTED 51A/Ftlf.Tir OF 11V4I ELIAS AVAillAnte inn 1:tnr SFRVICE. ntur Atilt TAXI'S Int INCo11K t(nnietderotinti give,. to the effects of InlIntInn) • 1982 198) 1,n4 1995 19n6 118/ 1980 1'17 1779 S"Ulgt."" "4"""TRucY Pcrc"ti'AP (ro"nattil) - 752. 1107. PSZ 057. 017. "It "I? Pst ihmher .11 nern1,1•4 rooms, ref Year 155.341 165..40 177 .536 180.632 108.637 100.617 inn.4,2 in3.43z ' tert.g 12 Avrenge tote (Ira littr4) $67.38 $12.11 $77.17 $02.56 $88.33 S9$19 4-69 1-119 Stmt.', $11S-711 Revenoev 7: . t ea nna ge trirphon E., Ion. e-7 ”..Of nrerntea.Oreertnefie-6nOr • Inco"•tr. CP Can Tots) repm ot/ental empen:qc ••C Jr to \ • G‘ P.0111.1 nnt1 hevernge irterfiore Conrlogslons Total appnirtftenti.1 errnetnentai profit A tii . 1; 1: 4 •- C) 0e4tote11.nrwa nperoulng es.penott! ^A to 44.1nIntratfv• nni general t tht1411not 117"r" tit .nrernt Ion. estIntenoitet1and1 17t* r..o.....nttnn,renter IROP chweRmo I- ^-+ 75.100.0:411 =211500 , _ .1991 $171.ef. . , 0.466.200 $12.001.200 $13.699.600 $15.577.600 $16.661.900 $17.823.906 $19.040.900 $29.49r.200 $21 .e99.0Pu 573. 144.""0 11.719.300 13.611.700 15.712.1ge 18.207.400 19.481.100 20.831,700 27.215000 23,86/.100 25.705.19n 7/.11/.7on t437.700 '501.500 572.800 651.300 616.800 745.400 717.500 851.500 /11..00 WI _1,10 '137.400.; 154.300 173.600 115.300 219.000 234.300 250.700 2.8.310 207.1no 107.7m, 104.6001 120000 mono 1.55,7no 166.509 178,200 170.1-00 706.1101) 710. In:. 711.Ion 45).990 . 485./00 519000 5500 4,100 515,01A.spo 481.0oo 77n.pe0 7,9.11n1 7.tioon 26 014 noo 30 8/4 noo 35 33e 4C0 3/ P20 380 4c1,45n.000 43.7.n...poo 44..pl,900 49 571.801 53.0)1.401 2.879.904 3.233,300 3 609.400 9 2511300 10.642.900 995.300 675,800 ••••70' es'too 9? 3 02A0 v._ .1.- 2_2,100 14_099 300 10 A120000 _12 22.L.5ro .14 .200 ^ r.. 108.100 oo.10.010 .-nrtg,:cnoltit 1.442.4065.0 hn44.too / ligatth.J1,4 nperotIng en reek (2--.524,100 5.333.000 to.h flow nvetInhle for. 1 tstet1 charge...0 41.5 7/2 900;00/ 6 nn7 540 tlrea .horgeg: \1/4 'JR C) Cool rlbot len to convent I ,murrattir • n3 Ion center pcomot1o:00000+0190.000 onn n.lono • ...tote fasten - 515.100 552,200 rrcetve ter:rri.lecom.ont 241 300 750„300 Intl flitel 'chattels.. 140.700 . 1.nor!,f,no_ Cnth 1 Ion oval Inhle:1.r.,10c_P,11 - - , 1”,,nttv. oi"oee.-eot'tee.: - ;• ffov nuntinL1,-,f/./ w f 1 P.,' t AVVO..,11.1111.1M0 - : 3.907.300 12,205.800 13.914.100 743.41311 . 859.900 121.000 14„f80,100 18 804...100 14 186 700 - 16,454 100 4.1emoo 14,173.100 920.100 131_000 20 216 500 17.403.800 4.477.300 16.017.300 90000 947.500 21,67...00 18031.500 4.710.000 5.124.200- 5.485.900 soo_non 17.1135.000 Inoin.m. 70.99i.Ao9 1.057.00 1.176.9o11 faus.on, 1.711.7,4 157000 171.'09 7.1.136.0" 2171.100 _711.149.'."0 20.l4t,1011 :ztorypq 2.669.206 -I : 2.153.000 3.191.800 3.614.400 3,652.100 1...109.200 1.145.000- 1.315.700 1.407o00 1.58..001 1..11.700 1.72.'..2::0' • 2.157.000 2.453.100 7.6/3.700 2.859.500 1.011..09 7.7/6.110 3,591,111111 .?9.5.90-'. :I ' --31..00 33.700 36.100 39.600 -- .1 le:7. ,07!.20- 6J79'..100- 7.1,16..500 _7..0)6.100 OdO7.I.134 " q;" 9"9 9 %14 "." 71.161.500:: 9_..60.TO JP.797..19g __!!,011.500 It..71I.e40 '111.1(l1/7°1 14.44.07V" 116,50.0--'- - 122.500 . 131.100 140.300 l5a.109-. tr.'..6r, 11t.p...3 In1.,90 95.400 -' - . 102.100 , 10).2n0 116.1109 125.1399 131-0!'3 141.191 SI I. liffi 979.990:- --: 632.200r- ' 676.0f) 774.100 714.7n0 • - 0'11.TA1 A0C.,r" . - 776.tAntv ' 215.70(). "-. .%31'.,.4C0- _.•3111.4!1Q 152.101 yr1.5fy.1- .- 414.7c1 _...1.3,1,6no 1.41A0P11;:. 4.111/.e"1- __14stn..,.1 1l152,500 .71ivie9 4.1A1.%09 6.6tS.509 1,A4S.11.0 / to9 6.e32.2()9 • 5.891),9017 7,080.71)0 0.507,5190 9,1.•11.111(0 111.371.103) 11.1111,400 391.7(10 5774 .,11 6c1.41n 'n47.514! R7i.',4111 '154.1tte) _ 1.073.800 •__ .r.• 1.171.cf, I -.• $ 4.433.5110 $ $ 7.665.10;0 s S /1.7 ('till) S. '1.14,1.10i1 9111./.1' t. If. I and tl I II 1)It 1 rn• it 1.'1 1 f 3-1,• • • 17./19. 11.9 1 107.nnn Page 23 LAVENTHOL & HORWATH PROJECTION, ADJUSTED YEARLY, AT 7%, AS TO BOTH INCOME & EXPENSE Percentage Additional Rent Net Before Debt Service Year Annual Gross Income of Grose (Rounded) and Rent ., • -'$22„185,500-- ; '• - 125% 4„433,`500.1.--- -- •. -,---,.:,,,,.....•::-.. : • : : : ,,...,, ,, .. . ., ....: - --, ....-,.• , . _ . -.;,...--, _ -•:$g4,siqopO o :: . ,-1.25%' •,,•$.320,000 5,..,:isq.,Op ..-...- .' •-,- • . - ,........,... . .. .. ... , .,....„. ,,,J...1-2.•... - ....,.... -..:i4,.,:•'. - .., ,..., ,:.,:s.,.. • , ...:.,•.;.-...,..,.. .. ., 1984 .• : 9,700 471,.-•••. . :-.2%.• -.: ' ,,.. ... : . $308,000 . • • . $6,420,900,-,:. •-:, .,.....-:.,..,..-. ,,, ,- , - .-: -•:.:-.,,,..,,,•-:..., ...--:::. -.:,,,,,,,:,..,...,•:-:-.-:.....: ..,:- .,-.. 1985 -:$33„780,,O0V.,- 3%,- .••,- .,. ...$q7i,000 ., ,.. : .,.:, ,..,......,....,..,.. ., 1986 1987 1988 1989 1990 1991 $36,141,000 3% $38,663,600 3% $1,160,000 $8,739,000 $41,364,200 3% $2,241,000 9,319,300 3% $1,328,000 $10,005,800 3% $2,421,000 $10,708,000 $1,520,000 $11 455 900 $44,267,300 • $471373,100 $50,681,200 8% Debt Service From proposed $26,000,000 mortgage at 20 years, 9-5/8% tnteree $1,084,000 $8,169,500 30-year payout, plus of gz,oes sales as additional itItestest. See sehedute at Page 24 of this report. SLACK, SLACK & •ROE. INC. T. C. SLACK. S.R.P.A.. M.A.I. T. W. SLACK, M.A.I. A.S.A. BRUCE C. ROE. S.R.P.A.. M.A.I. A?'ALY.SI.S OF CAST? FLOW PPOJEC-TON Year Total Ease Rent Additional: Fent Debt Service. 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 $336,000": $336,000 $336000 $336,000 $336000 -:$336, 000 $336,000 • $336,'000 $336,0 :tddit%oral Mtg. Total. Cash ten-st _ 0 1 p•7:. outfZc.) Projected P_.ct Incor:e `TTet Cazh Income $4,433, 00 $1,1.12,742 $5,358,500 $1,666,271 $6 .420,900 e2,622,849 $7,665,000; $3,495,324 $8,169,500 $3,555,379 $8, 739, 000 $4, 011, 070 $9, 319, 300: $4, 469, 861 $10,005,800' $5,025,815 $10,708,000" $5,588,428 455 900 $6,187,706 0- v2, 651,976 $'32:7R2 : �'3,32O $320,000. $2,661,976 ;7 4,253: 33,692,22 $368,000 $2,651,9?6 $442,075 $3,798,051 $675,000 2,651,9765$506,700." $4,169,676 $1,084,000 $2,651,976 $542,145 $4,614,121! $1,160000 $2, 651,976 $579,954 $4, 727, 930 $1,241,000 $2,651,976" $620,463` $4,849,439 $1,,328,000 $2,651,976 $664,009_ $4,979,985 " $1,421,000 " $2,651,976" $710,596 $5,119,572. $1,520,000 $2,651976 $760,218;" $5,268,194;: $11, ,, Total VALUATION OF BASIC AIR RIGHTS;' Value of Land e April.20, 1978: Approximatety„156,000 Sq.Ft. Ft. - 07,371,000 Area of Footprint Land & Rotel Area of Pool. and-Pool..Deck - @ $47.'25/Sq Total - Pa 20,100 Sq.Ft. 7, 060 Sq Ft. 27, 160 .Sq Fa: 27,260 Sq.Ft. / 256,000 Sq. Ft. = 17.41%. 17.41% x $7,371,000 (Value of Footprint Land) Value of air, view, light, eaeemente of access,, support facilities and right to derive benefits of convention center operation and Univereity of Miami operation, right to garage space to be built by the City - ae applied to the balance of land area after deducting hotel pool and footprint: 156,000 Sq.Ft., lees 27,160 Sq.Ft." $47. 25/Sq. Ft. - c $6, 087, 690 $6, 087, 690 @ 10% equate estimated value : of th- special=rights, Per :'annum,. of, VALUE OF ALL ,RIGHTS Basic Annual Rent .@ 10% Net - Annual Rent for "Shell Spaces" - TOTAL BASE RENT 128,840 Sq.Ft. @ VALUATION OF "SHELL SPACES" Estimated Va Zue '97 $1, 468, 950@ 10% Say` 5 283;'29.0 608,770 (rd.) $1, 892, 060 $189, 200 146, 895 $336,095 $336,000 930 'Sq.Ft. @ $15/Sq.Ft. - $1, 468, 950 $146, 895 SLACK, SLACK & ROE. T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A.. M.A.I. NC T. W. SLACK. M.A.I. - A.S.A. COMMENTS ON ANALYSIS OP CASH FLOW PROJECTION I am Well aware that the proceer3 of projecting income and expensee for a ten-year period, in advance, at best in very difficult task. It is quite obviot4e that no one can accurately predict the rate of inflation which wiil take place thin period. Laventhol & Horiwati are, at least, one of the most qualified firms in the Country to make such a projection, particugctrliy as to hotel income and expense due to EZ long experience and actual, otZtie studies from. their own reco2,da. In addition, their analysis of present income from rooms and expenses, geographically adjusted, ie probably one of Diae hest 13014i)Cte8 of reliable information on the subject. At the present time, it is my opinion that the 7% inflation rate is a coneez,vatit.)e figure. I am very familiar with th Omni Hotel, rates through 1977 and 2978, as well as several oher hotels of this quality and it appears that the 1982 average room rate, at $67.38 per room, adjusted for inflation over the ten-year period, ie ae accurate as can be predicted at this time. The percentage of occupancy from 70% in 1982, reaching 85,1 in 2985 and remaining at that level to 1991, ie substantially above the average hotel occupancy for the Country and locaZly; however, a few of the unique and outstanding hotels such as Sheraton River House, Airport Hotel and Omni are running equal to or greater than 85% occupancy. SLACK, SLACK & ROE. INC. T. C. ,..ACK, S.R.P.A.. A.S.A.. M.A.I. T. W. SLACK, M.A.I. BRUCE C. ROE. S.R.P.A.. M.A.I. Page 2 7 As to expenses, it will be rioted that the 1982 taxes are estimated at $526,100, increasing to t948,800 in 1992. Ver41! dl:ffteoult estimate to make however. - it is a rectsonabte prediction base Here a9at d on the pre fl,th'It? 1)8 a sent situa ti must be remembered that the rental qu(:)ted herewith is a net rental where the Lessee will pay all the real estate taxes on the . . a leasehold rights which, in thte znetance, are eettmated to be taxes for the building only. There is some question as to the possibility of additional taxes being levied on a proportionate share of land taxes. This obviouelY, would increase the fl:xe.d expenses. In our anaZysie of the cash Flow, the baee rent n8 fixedd for the entire forty-five.year period and the, debt , service of Pl'ineipCZi and jitter est rem atnis fixed; hoWever,. the e 3 8aed7'ditionai mortgage interest at based on the gra88 tnet7M increases in proportion to the snoreaee of gross i.noome• It can be seen that the first year will show a profit of $1,112,742 and that the hotel will show a prc)ft t of $1,666,271 t:rt the second year, increasing to a healthy se,787,7o8 in the tenth year. It ia presurned that a future Project will follow this pattern tn the event that inflation continues at the predicted rate. SLACK. SLACK & ROE. I 1 T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A., M.A.I. T. W. SLACK. A.S.A. the purpoee Page 28 No depreciation has been estimated herewith and. of this analysis`ie to show whether or t the , able Yto*eZ operation wilt' prove to be a profitable operation to pay the rents as called for in the schedule. It should be observed that white the gross minor operated departments eliminates telephone, conceesions, and rental income, there will actually be substantial net income from all, usually a loser. 1-:et�.ng room migh rooms income n my opinion, a except the telephone, 'which is I am aware that the rent to be paid for each t run from`64 to .7s per square foot for those which, could well be offset located in the convention center, aemnor revenues of store income, °oonoeseione and small mer,cs, It would appear that the. rate of investment in the Ly the` ac pant hotel should -be very adequate.. I have studied national figures 3 of the gross business as a.rental'fo lard,;ie in line with hietoric etat nature'. after paymen additional m and it appears that r :hotels which do not own is£ioa hotels of this on flow projection,. It ie quite obvious that the cash t of base rent, additional rent, debt service and ortgage interest, leaves a surplus on' the basis of SLACK. :SLACK. & ROE INC, • T. C. .LACK. S.R.P.A.. A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A.. M.A.I. T. W. SLACK, 'M.A.1. = A.S.A. Page 29 • ,'-.• ' .;:------.',•,,-,-.-'_:,-;---',:•,:•-, - ,-- • .,,,•-' • ' ,, ....... .• • - - --.., ,...-„,. ......,•:, :,-.- .. „ , . ,•.•,...,.-..-_-,.,..,...,;„..-.:.....:::......•-......,...._•„:-.....:;....... - -,-._-• ,.....,•,....,•,_ .• „...,..$110-....006.,leo..taid,',., ife•.::mq0nia,•,:::aftei.'....•-Op.O:46rig-::•••:eipeiti100,• before -..i,:the 0 O.:- •••,•, -• . ... . ., . ,, ..... . . ,, .. . „.. ..... , . . • ,. . - . ••• - .... ••,,, • • • - . • ..,.-.- : ,, . -.• ...- - -.. . -. • , .• -,-,• - -...- '--,..., • ,. , ••: - .-- - --,..--..: .;..-.-...-.,-...---.--.,...;,-..-- ..,,; ..--.-.,;,,....,, .. 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', , ,-... • ., ; : • ,---,.,,,,.., . - , •• -.:f ,'.-.:-..,... '-:- . ' : , - ---:',.-. - :-- :' --' :---. :: ..'.- -':--:-- H .'',' :-.: !-,::,-....;.. ' - . ,-:--:,.. .-: .,•-.. -',-. - .: :-- ..-- ::'-,...:,-..:-.:- • '-::':::::,.--- .'--:..-- ,:-- '''''',:-.' --,-i,--- :',-, f -',..':.-.:-.- : : . - - - - - - '-': - • , . .... . . . „ . . ., , . , . . -...- .,- .. . - :' : " .--", -:. ., ... -,--; - ,:„- • .- .., . , : - " ,,---, , . ... - . ..- .-,-, - .- - , ,.,. -... -,- , . -. -. • -, , .,,-.. -..- ',,t -,-; - --:,- ---. , ., . . , .. „ , trieitt:f6i!-..;.,:thit::•deoe,„topao..-:••0$4-•...,Of,.,,-,'eauiibe, ••-an-•....,eice11eiftt',-.••rio04.ki.s-:-.,,,,t0:::-,.......:.*,::::::.: .• ..... .. .............. .... .....,,.....„.. .. .. ... ..........., ... _ . ...• • .........„•.,...,,....., ,....., .„..:,,,,........„.., ,...:,.,...-..„...,,.. .,.....„-- -,- - ••-.....„.... „.•.............„ ... - --. ...--,.......-•,,..-.. ,.. - . ',-... . ,•. " - - - • --- - , ..- .‘• • ...•-• •:-... ...,- •... .. „ -, ...••,..: ...„.„ ,....?...,......................„......,...,.,,,,„,,,..„. • - -• • - ---- - -, . ,, -.-.., •.- ....... . . ....„ . ....„ ...., „. ... . ,. ,, . ,, , the .C.tt.--.,',r,filaiir...thie...,','paiti.On.- ,af,.,-..thit-• titaii..,,e:a,;,,, •••-,....: . - ' . - - • • • ,,•.,:- • ..•,..-,•-• .- •. • -..: •..:-.: ,..,--..,,-,...:-• . •. •... - • ,••.,•....,„,..,_•:•.,......:,,,...„..,.,,..,• , . • -...,„, :.,.• ;„ -..,-,...„.--.•..„,•-..,..,,,,,, , SLACK, SLACK & ROE. INC. T. C. SLACK, S.R.P.A.. A.S. A., M.A.I.T. W. SLACK. M.A.I. - A.S. A. BRUCE C. ROE, S.R.P.A.. M.A,I. COMMENTS ON VALUATION OF BASIC AIR RIGHTS • Page 30 It is my.opinion that the Uatue of theair rights if limited to a proportionate share of the Zand area, as• cateutated;from the footprint of the hotel and. pool pee'' not adequatety,reftect the value of:a 1 the rights as-'set°fo on Pagethis report. Since the City iet to erect: a garage with adequate parking spaces to be reserved for hotel use, this will eliminate the neoeeeity of 'thie investment. I have recently. appraised 'a large offine',buia,ding , to be constructed in Fort Lauderdale, where the Same aituati.on on City property has developer,d. The inoome received 'by hotel 'from car 'rentale` should at least equal -the rent. :to paid for these r`rights.. Theunique attraction for hotel convention center, conference' forth, 'is difficult to However, the analysis together with the analysis of hotel indicate the and so rights. the rth guests around the center, Univereity of Miami project separate from the entire package of of basic rights herewith, the profitability picture on the reasonableness of `this estimate herewith. The important matter of the capitalisation rate has been carefully considered. In the fourth quarter of 1878, the American Council of Life Insurance estimated the average SLACK, SLACK & ROE. INC. T. C. SLACK, S.R.P.A., A.S.A.. M.A.I. T. W. SLACK. M.A.I. - A.S.A. BRUCE C. ROE. S.R.P.A., M.A.I. Page 31 capitalisation rate for major hotels and motels to bc 11.0%. This would not take into consideration the aspects of tax shelter which are present tn he subject leasehold. Another method of estimating the oapttaltsa ion rate for the so-called "build-up met od, is as follows: • Penalty •for nott-liquidi.ty - Penalty forburden of manage ment - i?jek Rate - 2% Total - 11% From the .tax e/ielter standpoirit, rental paid for air righte woz4ld be deductible in the same manner as ground rent, plus the depr.eciati:on on building and equipment and this leadt3 me to the conolt4siort thczt a 20% capitalisation rate 1: 8 proper. SLACK, SLACK & ROE. INC T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. T. W. SLACK. M.A.I. A.S.A. BRUCE C. ROE. S.R.P.A., M.A.I. Page 32 COMMENTS ON oOMPARAELE DATA , aolne , tit's °I to e on i ?Jo. 2 frantag the t indl'aa t) ntie , zapt... a ,1 v tt4ee sa t havc ae8 "1 no an tjha 2,td A e 't d°e8 ' r°14met a•'. - ,,,fz.; o BP t4 h tJaverj eatai i able There were *h. tette va . River ale - tE the Nialni Rly v)hi°h m or on exiting ieaee8i Purchcza _.....'..e Pzi()PertY. • a Prt.me bayfront 6 of two ext locati°n at e foot a correF'Gra 1.*P'. tolzich 18 per aluar 1r., ?no, . 5dle No. 2:mew a frontage or a indtcathe 814 17 tee $6248 b 'Act , the 14jaml: Rit)eri prominent than ...,7: : h t 7ncilie atz , d in 7711/ aPi'nt .1)er t have III oas n°with two 3 d Zocati°'2. sale No. locati°?1 able' pr _ vi.t: locatt 4 has a .hie a market on d 0,71/•,..e.-- (., ale No. not make v f the anduciMg bytc an tn are dica 1 m;lich, 5 2,8iidinp, ong t . tesil d a . dica 17r0 tion -e.8 - Sale No. ie _ •u v a etr '' node d i h is t he re ' whte 7or Street an foot rental, __ ,,,ton area._Izo,A7-rig F7ag'--- ;,.,I2 eqtdar- . the downtown _ and sa, 15 - 1, , extremely "1° economy of of Sale8 6 e year the rev'!" _e 7,8 , g8 A ''' ____..abl 't)ittil ' . true ,, _.rz on .e. 0 j- The sam . __eaee °J w 0 be comP"A .., - and Sale - 0, at an Incz. small t re- 8 ta too ea&e. N T. C. 1.'4C-.K. "'P.A.' A.S.A.. M.A.I. SLACK. SLACK & ROE. INC. T. W. SLACK. M.A.I* - A.S.A. BRUCE C. ROE, S.R.P.A.. M.A.I. Page 33 Sate "No..9, adjUeted for time since 1975 `at 401, does "not have river .,f rortage"gin, the ptottage, `'which in ;an important factor in the ,Value of the "'subject property. Sates '10, 11, 12, 13 and 14 are all "ea tee it 1973 and 1974, 'requiring adjustment at 1 % per month, or 50% t 60%. In my opinion, none.'of these.latter eaZee, with the exception of Sa "te 14, are equal to the-equare foot value-, the subject property. Sale No. 14 is prominent corner, having` potentially good retail value at.$80.50 per equare foot,;after deducting the building value. I have taken note the "fact that this office appraised the "subject ;property "as individual eitee when acquired,' the appraisal .being dated in 1975. The time adjustmetzt from" this date to November., 1978 would be in the ne,.ghborhood of 35% to 402 ,upward, on a :conservative ;estimate. Using "$35.00 per squarefoot as the average value in 1975, before "assemblage, 352 increase would bring the square property to $47.25 per square foot whio feet, equate $7, 371, 000. SLACK. SLACK & ROE INC. T. C. SLACK. S.R.P.A., A.S.A., M.A.I. BRUCE C. ROE, S.R.P.A.. M.A.I. foot vaZue the 'subjeo. imee 158,.000 square; T. W. SLACK, M.A.I. - A.S.A. NALIFICATIONS OF'APPRAISER THEODORE V. SLAM !AI ASA *V"ATION. duate, Tufts OolZege, Boston, Maile• I AB Degree o :::duoto works Suffeik Law B°71°°1 and BostonUniVerelty, t Boston, mass. PrDFRIENCE: Over fifty years experience in sales, management, teasing and appraising of at1 forms of real estate in New England and in Florida. OuaZified in Superior Court in Hartford, Connecticut and 1,n Miami, Florida; also various district and circuit courts. AFFILIATIONS AND OFFICES HELD: Past President, South FZorida Chapter, Institute of Real Estate Management rafit president, Hartford, Connecticut and Miami, FZorida Real. Estate Boards Pat Vice President, National Aesociation of Real Estate Past Vice President, American Institute of Real Estate Boards Appraisers, South Florida Chapter Past Member, Board of Governors, FZorida Association of Realtors Past President, Senior Member and Direotor, American Society of Appraisers Instructor of Appraising, Federal Savings A Loan League Associate Director, Miami Chamber of Commerce Civio Affairs Committee, 1955 Director, Inter National Bank of Miami (RoyaZ Trust Bank of Miami) Addenda A Resident of Miami, Dade County, FZorida since 1943. SLACK, SLACK & ROE. INC. . SLACK. M.A.I.-A.S.A. T. C. SLACK. S.R.P.A.. A.S.A., W BRUCE C. ROE, S.R.P.A., M.A.I. r IX>' H•'X/XV% lt• tb' ExpQE.bbw1.Y (2A0.•fMOS) . •1 `` " -11. —•a: SE • p ••. 1 ., 106 .. 1.. — —y _ `R_ �♦ liste•`ra Pitt0 '' \ i 1 li 1 4 IL:f•:." .6411t.,.42i tiT , .- oe # I I` ••.• t. I. 1.k.6.w •wJ. 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'1 ' / / ) •, . . • ./ . /. i /,,, .../- .1 rl--:: ' .."•••••• Ferendino rtreoltsoNnuonturrote •WAN LEVEL CLMA KA% AI • P. iv et litztton •24'•6" 1.41434jyratiLL=4.116-‘.. •tairgooia Qat IT . •I — L L Vilost6661161616611161 i / ' ��' .) % { 4^— n A, ii l F.nrr10 wcm"t* anjnww►illrs Gt� d Mir Grattan .. __ �� "? nL.s A,yi�NIWs1 'igNATDPNbCflirER Saints :::���••� • • 4. • • 4 1 -1 ......."..jr 110,-,1•11 - • 1101•0114 TNPt UVEL. !LOOS! PLAN Vi.• —t —0 0 'Onv if Miami Fermin., trymetimireirwatmes 1.••••••:rty Wei Grattan Kmurit KTVINAMPW.CIENTDI SOWN F' or Fombio agutioolM""clIm" g cf3fruH 4:•.• cogravtor; Split is ::„.••=: = LowcIftv cit "we tourctecwAl- n swami kw. L e • . ADDENDA D 1. Legal Location Date: Indicated Price: Grantor/Grantee:. 0/R: Size: Indicates Zoning: Comments: Description . Legal Descripti,.• Location: Date: Price: Grantor/Grantee: Size: Indicates: Z^Wing: Comments: COMPARABLE LAND DATA Lots 11 and 12, Block 125, MIAMI NORTH, Plat Book B, Page. 41, Dade ,County, .F.Za. 135 South Miami Avenue July, 1978 $585 000 f r fee Robert Revitz t. Florida East Properties, Inc. 10182/1785 12,500 Sq. Ft. $46.80/Sq.Ft. "C-3" The purchaser reports that it was necessary to pay an additi_-nal amount for two existing leases on the property, plus a commission, which would bring the indicated price to over double the. recorded price. Since this was for a specific purpose, i.e. building already leased t the Federal Government, it would appear that the total price was substantially above the market. Due to the peculiar requirements of the building and the small size of the land, the floor area ratio was over 14 to 1 on this sale. Tract D of DUPONT PLAZA, Plat Book 50, Page 11, Dade County, Fia. Northwest corner of Biscayne Bay and Miami River and fronts on Biscayne Boulevard. 1978. Contract - scheduled closing June, 323,000,000 DuPont Trust to Hollywell Corp. 8.45 Acres $62.48/Sq.Ft. "C-3" This is considered to be an excellent downtown property and is the site of a proposed $115,000,000 complex, including a 630-room luxury hoteZ. Options on other lands. SLACK SLACK T. C. SLACK, S.R.P.A., A.S.A.. M.A.1, BRUCE C. ROE, S.R.P.A., M.A.!, Land Sates - With Improvements of Interim or Small Percentage Value 0n1y 3. Leaal Description: Location: Date: Price: Grantor/Grantee: Size Indicates: Zoning: Comments: 4. LegaZ Description: Location Date: Price: Grantor/Grantee: Size: Comments: SLACK. T. C. SLACK. S. R. P. A.. A.S.A. M.A.I. BRUCE C. ROE, SR.P.A:; M.A.I. South 50 feet of Lots 9 and 20 and all of Lots 7, 8, 13 and 14, Block 10Z, MIAMI NORTH, Plat Book 8, Page 41, Dade County, Florida. East side of NE 2nd Avenue between NE let and NE 2nd 'Streets. September, 1978 $1,255,000 Robert L. Greene to Marvin S. 35,000 Sq. Ft. $35.86/Sq. Ft. '1C-$"" Partially improved with old hotel of no value. Property is located northeast of subject in an inferior locati'n as compared to subject. Lots 1-7, Block 119, MIAMI NORTH, Plat Book B, Page 41, Dade County, Fla. South side of NE 1st Street between Biscayne Boulevard and NE 3rd Avenue. December, 1978 $5,400,000 City Bank to Fine 290' x 200' = 58,000 Sq. Ft. This property is improved with the Columbus Hotel and McAlister Hotel. The McAlister is not being used and will be demolished. The Columbus, a 300-room hotel, y also be removed so the entire block can be rebuilt with new office/hotel highrise. Presently, the Columbus ie being repaired and painted and has some interim value. $93.10/Sq. Ft. :1': A.S.A. Date Price: Grantor/Grantee: 0/R: Land Size Improvement Size: Indicates: Zoning: Comments: Parcel 1: Lots 17 and 18 and the west 50 feet of Lot 1 and the south 50 feet of Lot 4, Block 118, also alleyway 10 feet in Width on Lots 1, 19 and 20, described as the south -3 feet of Lot 1, Zess the west 50 feet thereof, and the north 7 feet of Lola 19 and 20; aZdQBeribedalleyway as?thefeet east 7 Width over Lot 4, feet of Lot 4, less the south 50 feet thereof, known as Paramount Building. Parcel 2: West 43 feet of north 100 feet of Lot 4, known as Bradford Lotel. also Parcel 3: East 100 feet of known as a portion of the Calumet Building. All parcels in Block 118, MIAMI NORTH, Plat Book B, Page 41, Dade County, Fla. North side of Fast Fiagier Street to the south side of NE 1st Street, between NE 2nd and NE 3rd Avenues. July 28, 1977 $3,300,000 Miami Caribe, Inc. to Argen-Florida Corp. 9758/22 29,700 Sq. - `It 44,581 Sq.Ft. Land and Building - S111.11/SgFt. Improvements $74.02/Sq.Ft. "C_'3 " Lot 1 is improved with a 5,976 square foot building constructed in 1919 and assessed at $28,130, with a Zand assessment ofi? $120,000. The south 60 feet of Lotsand 18 are improved with a 22,500 square foot building constructed 1919 and sed assessed at $119,746, Lots 17 es at $462,000. The north 80 feet of and 18 are improved with a 16,085 square foot building constructed in 1923 and assessed at $112,502 with land aeeeeedorth at $299,754. The west 43 feet of the 100 feet of Lot 4 is unimpr.ved with an assessed value of $172,000. This property is being renovated into a downtown shopping mall known as Galleria and while the improvements were completely renovated, they were not a substantial part of the purchase price. SLACK. SLACK & T. C. SLACK. S.R.P•A► A.S.A.. BRUCE C. ROE, S.R.P.A., M.A.I. ,w► SLACK, M.A.I. - A.S.A. 6. Legal Description: Location: raf.E. : Frg,ec t f?rantor4 rantee: Land Size: Improvement Size: Indicates: Zoning:. C orn,netin 74'8 r'-,..ezir? or above. Date: 0/1q: Grantor/Grantee: Price: Cornrnert to : 7 . Legal Description: L°°ati°n: Date: ;rantor/Grantee: Land Size: .Trnprot)ement Size: Zoning: Comments: T. C. SLACK. S.R.P.A., A.S.A.. M.A.I. Lots 14 and 15, Block 118, MIAMI NORTH, Piat Book B, Page 41, Dade CoUntY, Fia. North side of East Flagler Street, between NE 2nd and NE 3rd AVenues. June 1978 $1,460,000 Florida National Bank of Miami to Moonstone Investment. 14,000 Sq.Ft. 76,122 Sq.Ft. Land - $103.57/Sq.Ft. Improvements P9.05/Sq.Ft. Property ie improved with a 76,122 square foot building conetructed in 1923. This is the old Ponce de Leon HoteZ, which is in poor condition and which adds tittle, if anything, to the value. May 30, 1979 10408/1051 Moonstone Investment to Angelo Gugliotta, Trustee. $2,290,000 (Mortgage - $1,150,000) $163.57/Sq.Ft. Presently remodeling building for mall - type shops. West 15 feet of Lots 4 and 17 and all of Lots 5 and 16, and the east .04' of Lot 6, Block 117, MIAMI NORTH, Plat Book B, Page 41, Dade County, Fia. South side of NE 1st Street between NE 1st and NE 2nd Avenues. May, 1978 Wometco Enterprises to Puerta de Jae Americas, Ltd. 18,856 Sq.Ft. 44,864 Sq.Ft. Land - $92.81/Sq.Ft. Improvements - $39.00/Sq.Ft. "C-3" Improvements consist of a 44,864 square foot building, built in 1947. Land ill assessed at $738,540 and improvements at $448,322. This property ie being renovated into a shopping matt known as The Capitoi Mall. SL.ACK. SLACK & ROE. INC. T. W.. SLACK, M.A.I. A.S.A. BRUCE C. ROE, S.R.P.A., 8. Legai' Description: 0/R: Date: Grantor/Grantee: Price: Size,: Location: Indicates Comments: 9. Legal Description Location: Date: Grantor/Grantee: Price Size: Indicates: Adjustment: Comments: SLACK. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A.. M.A.1. the south 75' of Lot 11, The north 25' of the West 5' of the North 25' of south 75' of Lot 12, the North 25' of south SO feet of Lot 11, and the .`North 25' of 811IAMI5NOR1'H, of West 5' of Lot 12, nook 121, Plat Book B, Page 42, Dade County, FZa. 10203/222 19.28 November 1, The Bank of Miami $255,000. 2,750 Sq. Ft. east side. 25 feet north.of'SE "let' S rest, of SE 1st Avenue. $92.73/Sq.Ft. proper* Vacant. Very email, . corner prop y; indicates very high square .foot :price. Begin at X of E/L Ave.,D/S Miami Ave. S/L 14th St./SE 2 St./E 70',.S 124', W 70', N 124' to POB intersection Southeast corner of Miami Avenue and SW 2nd Street. November 3, 2975 9148/861 S.E. Miami Corp. to $270,000 8,680 Sq. Ft. $31.00/Sq.Ft. Time adjustment (40%) SmaZZ parcel. Buildzn South tares �4'3.40/Sq•Ft. s ,`tier.e recently• razed. W. SLACK M A 1. A S.A. Legal <'Description: ::cation: natc Grantor/Grantee: Pricer Size: Indicates: Comment: 11. Legal Description: Location: Date 0/!?: Grantor/Grantee: Pricer Size: Indicates: Comments: 12. Legal Description: Location: Date: 0/R Grantor/Grantee Price: Size: ;. Indicates:13. Legal Description: Location: Dater 0/R: Grantor/Grantee: Price: Size: Indicates:` Lots 11 and 12, `;Block 125, MIAMI NORTH, Plat Book F, Page 41 .Dade County, Fla. 135 'South ,Miami Avenue Au9uct 8, `'1973. 8405/2760 Herald Fabrics, Inc. $165, 000 5,570 Sq. Ft. $29.62/Sq.Ft.our Sato;=1 and This is a prior sale of indicates an increase of 58% in the 5-year period period between the two sales, or almoet 22% per year increase in value. Lot 4, Block 126, MIAMI NOZTTH, Plat Book B, Page 41, Dade County, a. South side of SE 1st Street, approximately I50 feet west of SE 2nd Avenue. November 1, 1976 9504/1837 Graham C. Miller to AtZright MiamiInc. , $115,000 5,600 Sq. Ft. $20.54/Sq.Ft. Very small parcel - inside Zot Time adjustment of 30% indicates $26.70/Sq.Ft. 126, MIAMI NORTH, Block Lots 13 and 14, , Plat Book B, Page 41, Dade County,Fla. North side of SE 2nd Street @ NE let; Ave. May 30, 1973 8310/753 Inc. AZbury Bros., Inc. $450,000 12,500 Sq. Ft. $36/Sq.Ft. Lots 6 and 15, Block 126, MIAMI NOR, PZat Book B, Page 41, Dade County, FZa. Adjoins Sale 22, above. February 19, 1974 8599/1773 Willard R. Brown and the let National Bank of Miami to Ultramount Properties, $430,000 12,500 Sq.Ft. $34.40/Sq.Ft. SLACK, SLACK T. C. SLACK. S.R.P.A.. A.S.A.. M.A.I. BRUCE C. ROE, S.R.P.A., M.A.I. o UZtramount Fropertiee, 14. Legal Description:. Location:'` Dater: 0/Rt, Grantor/Grantee SLACK T. C. SLACK. S. R. P. A:. A.S.A.. M.A.I. BRUCE C. ROE, S.R:P.A.; M.A. Lots 8 through 12, Block 226, MIAMI�OORTii, Plat Book 8, °Page 41, Dade County, F Adjoine Sale 12 June 30, 2973 83.20/752 Trans.European properties to Vitramount Properties, Ins. 01 250,000 Sates 12, 13 and 14 produced an assembled property, including the Columbia Building, totalU ng 56,250 square feet at a total price' of $3,408,000. The buildings on Lots 6 and 13 were demolished. For a time adjustment, we require 10% per year or an increase of 60% from the original acquiring price of $2,130,000, to $3,408,000. This computes to $60.50/Sq.Ft. considering the land value only. The two-story Columbia building is almost 50 years old and does not really produce enough net income to justify its existence, so that I consider this represents Zand value only. • A r Tau .of (7- ;Ifiloribzt Tti1 12, 1979 Mr. irheodore Slack, Property Appraiser • 1620 tlest Fl...1gler Street Florida 33135 Air Rights Over City of Miami Consiention Center Dear Fr. Slack Per your conversation with Don Stewart, Property Manager, this letter constitutes your authority to appraise the Air Rights over the City of Miami Convention Center which is being erected on the parcel of property located Last of Bauder Fashion College, West of S. E. 2nd Avenue, South of the I 95 1-...xpresswaY, to the River. 7his appraisal will give to the City your opinion of fair market value as of 7,pri1 20, 1978, of these Air Rights. You are authorized to engage the services of consultants and/or appraisers that have the expertise in this field to aid you in your appraisal of value. :t was agreed that you will do everything possible to deliver 10 bound copi.e.s of your appraisal to the City of Miami on or before August 13, despite your r.....:evious telephone commitment that you need until August 20. However, you could not guarantee delivery on the earlier date. 11 City personnel have been instructed.to give you .the utmost cooperation and deliver to you as needed upon your request all data concerning the Convention Center and the buildings involved. Office of 10,1, 33(1708 Florida 33133 (305) 579-6058 IngUirY or Reply Should hc.1 Directed to Property Manager cincerely, • Guhde:rson ^tor of Finance Addenda F am.— • .- -• I. • Spa • I ti j 1 1,1 e• I L1.11 .; t P •Ns.} st+i yPcrci . i ce! =MN./ I I ---- i 1 r jar „ •1 11 - World Trade Center \f, •. /• I , I " 1 I 1 I I j 5 I , I 1 1 1 1 % I -1 III 1 • 1 1 i \ I . 1 1111 I I : 1 I I _ L ._. .11 L - - ----i 1-;=.7.7.1"-- - __ - N.- ..., ••• M... ..... ..... .... • • CHOPIN • ,1•11 •••••=. ok.•• OM. IIMIM ARKIN ••• PLAZA • O. . ....,„. . ...... it..1.1 .1,_,...... n 1 a %•••• . 1 _ „06 t • • 1.-... • :!.4 a rit :71:711 i 1 , I , 1 i - 7;:' . 1 l'..? I i?".?!. •• I -4,..w.,.. , •.. 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'7= • E, - ebt V..; T. - • • 1 • 3 1 ▪ 'o 1 1 I.W :� .r- I - - I' m tj'' it': ' �_ - 3. ^F 1•1.1A4•!t it-• � ..; .. \^▪ 1 ..1 I iIINA !4, h ,I, 0 O I1+' PAR At UtlT HO1E.L �`& A EL•D3• PAN AMA P. BANK OF MIAMI C .7 9l--.t1K BLDG. L 4 t. ST._ :�h _T_NE I:IGOI:Ut.JL�- .s= AFGnt_L- ic, o_-- ,— � I . � - 1, 10' - - - - -..' ...1 j: 1 , iL„.1_1:' L—.5.4—Tsi• ri.:::. 37:::-:,:!.:. . . 1;11 - 1 —. .�'IUt C s t:IINOTEL� MCI�+LL1S i E. I ;Y11�1j 1,11 tall HI Z IwI1 t. = � l R : 1st `FEO BLDG. `I 01�� BlameAYNS TY: •11 RTER ONE SUB'87-26 1 40 STORIES 5 r. 120N Tr r Sr5 / ( _ _ As- n �q UNITED ,�_-. e \` NAT'L 'BANK 1 1 N. r • v S• Id, — 1 1 -1., i i `'» 1 w 1 n', 1 S� t-(1, no .0 1` WI ''B�..OA. 1 01 I I, I I r 4 F �, / I fr G' i _ ;•3; ; d 1 11 a I I '±Mri 01 IJ�ItI 1ji ./l *' ►. 1. I C '� :: i l. 11�.1.11 l Ul 1 • 0:-II .• :1. 1. u1 I�1 'o:.M1 1 21 �fo•s• ti,- •1 1 1 • 1 1 • i• I:.S 1 tS' I : .. K pir ;I t.. tit 1 it III 0- 0 1 s .1 III WI•irk . C I,:-- o L , • III IiiJJr.' �.: Lc N 1,�' J• -. ' I /20. 1df/3 1 /4 1 y_ Cr. 1 1 1 ;Li" . TUNMEL; ., 1 . I 1 1 I1. I 1 ' T _ I I Sv .• c a tl. of o1z AIN 1 io I 0' Y. ,1© S0 ZS `S1 yJ 1 ...la a I 1 1 Z 1 1 I M I I°s IjH 1 i P K tit• IW og4 1 .3 1 1 !. 1 1 I t r--n 1 1 /8 1 2e 1 4- DADE:$ED ' o• 0 co I -4} ; - CC�; • el a f e • "; N. t- • 1 ^tee 1 11jA% CARt_O5, -" Q: '1 1 • i • • r -- ''' f2 • tz. • :"*_11R▪ .':'J1- • • • ' 13. T. ' TW RS. ' ! B n•,G. ;' y 1,414 .it, I 140�e_ 1' ,, 1 I - - If P i G. Ci, I 1 I 1 z '. 1 C.i < _, QIC OI;. .Z a xV v1= Yj t+1, 1 u 1.' . 1'1_ 1Ja�S IPONCE LEO MQTEL 1 C• /; v I Io f�AtLr �c r1y'S ::iz /7 ENT; PAN- AMER BANK OF MIAMI • 1 121 FEO. SLtY P%CF Ct'' r... t'S NAT'L, CITY BANK /JO 1 1 ADDENDA G A ,1...t.t.tlatbale•viTR.>t1L�ILY i3l9FiR: W C .1 !II 1110 MI misINrl x r LEONARD A. BISZ ( TELEPNCNE .(30S) 443.7446 REAL ESTATE SERVICE 2511 PONCE oc LEON BOULEVARD SUITE 410 CORALGABLES, FLORIDA 33134 MEMbTIT AMERICAN'.INSTITUTE or REAL ESTATE APPRAISERS City?'of Miami; Florida P. O. Box 33-708: CoconutGrove Miami, Florida 33133 Attention: Mr. James J. Connolly' Project Director Convention Center Re: APPRAISAL OF AIR RIGHTS AS OF APRIL 20, 1978 JAMES L. KNIGHT INTERNATIONAL CENTER, MIAMI, FLORIDA In accordance with instructions, I have prepared �` an appraisal report on the Air Rights on the James L. Knight International Center in Downtown •Miami. My report is transmitted to you herewith. If you have any, questions concerning my please do not hesitate to call upon me. ATTAC11P,1ENTS LEONARD A. BISZ, n C TELEPHONE (30 SI 443-7446 LEONARD A. BISZ REAL ESTATE SERVICE 2511 PONCE or LEON BOULEVARD .. SUITE 410 CORAL. GABLES, FLOR1OA August 22, 1979 City of Miami, ; Florida P . O. Box 33-708 .. Coconut Grove Station Miami, Florida 33133 33134 .MEMbEk: ANERICAN INSTITUTE OF REAL ESTATE' APPRAISERS Attention Mr. James J. Connolly Project Director Convention Center RE: APPRAISAL Air Rights James;L. Knight.. International Center - City of Miami, Florida Gentlenien : In accordance with provisions contained in Section 3 of the Lease between the City of Miami and Miami. Center Associates, LTD, I am informing you my appraised value of involved air rights ofthe hotels facility in the Convention Center is $2,450,000.00, with the annual rental at 9% would be $220,500.00 per year. I am informed that Mr. T. W. Slack's appraised value is $2,040,000.00. Pursuant to the terms, of-the-:Lease,we have agreed that the value could be adjusted to $2,245000.00 hesitate If you: have any questions, please do not: o ca.11 upon me. Respectfully yours, LEONARD A. BISZ, 1t. 1 • TCLEPHONC (30g1 443-M4G LEONARD A. BISZ REAL ESTATE SERVICE 2511 PONCE bt LEON bOULEVARb SUITE 410 CORALGAt3LES,'FLORIPA33134 CERTIFICATE OF APPRAISAL —i I CITY 0%' '1 LORIDA •,FAIR MARKET VALUE AS OF APRIL 20, 1978 Air Rights' For Hyatt Regency Hotel Facility In Convention Center (Fully Described In The Attached Report) MEMk3CR AMCRICAN .INSTitUTE Or RtAL`t TATE APSRAISCRS TWO MILLION FOUR, HUNDRED FIFTY. THOUSAND DOLLARS. ($2,450,000.00) Annual Rental At 9%` Per Year TWO HUNDRED TWENTY THOUSAND FIVE HUNDRED 'DOLLARS ($220,500.00) LEONARD A. BISZ 4 PROJECT: JAMES L. KNIGIIT INTERNATIONAL CENTER MIAMI, FLORIDA VALUATION SUMMARY AND CONCLUSIONS (VALUATIONY DATE - AS OF APRIL 20. 1978) - Fair Market Value of the Land Parent Tract Site 156,200 Sq. Ft. M/L (Average $45.00 Sq. Ft.) Fair Market Value of Easterly half of Property in Which Hotel is to be located (most desirable site) "Footprint" of Air 'Space of Proposed Hot: as' estimated by this Appraiser from'Pian.s. is (see diagram) Add thereto elevated Hotel Pool & Deck Total "Footprint" Value "Footprint" as Land Upper space value is approximately same Value as landfor Hotel Purposes. this instance • "Advantages of unique location of hotel in Convention CenterComplex built and operated by'City of. Miami gives increment of value to the ;Hotel as per Lease, not -available to surrounding competing properties Use of designated 25 unfinished "shell" spaces built by City of Miami totaling 97,930 Sq. Ft. on Ground floor and "Main; floor in the Convention Center - Total ;Value .of Air Rights and Lease Privileges - Rounded Out Use Annual Rental Value at % is LEONARD A IIISZ M A 1 . NEAL FSIA11 APPRAISER AND CONSULTANT ,029 0oo.00 50.00 Per Sq. Ft 20,100 Sq. Ft. 7,060 Sq. Ft. 27,160 Sq. Ft. 1,358,000.00 339,500.00 734 500.00 ,450,000.00 220,500.00 Per Year 11A.7.40;45Vat44'EMKIATNiWeSAINITIMMIW---- 111••••••••,..11•1/0 zzzzzzzz /4 LI °NANO IN A I PEAL l'JtATE APPPA,ER AND C.NSULT ANT .g.047',"1`k t•M'A 10'1 "T",e; • t RT AL. LSTATL APPRAISER AND CONSULTANT AN • Al an so i _ .= = .__ a�. , ... -----• Waite.' 211 i •,c •' � �i . - .-,_._ .. • a...? `a"' •' ' S4`• •'ram LOOKI':G SOUTHERLY AT SUBJECT PROPERTY FROM HOWARD JOHNSON'•S PARKING GARAGE 1NY11�15 NU7 ONV HJtiir'H.14.11/ 7Iv IS1 1V3IJ %z' . J . ` . 4 i t• • ♦i • S s . f ...I .. {t••: Y }• 'ref. •yV : t }spy �fi`< 14: 0. -4it":. Fief• • �^ nj�;�.�� r • am LOOKING SOUTHEASTERLY AT PROPERTY EAST OF S. E. 2ND AVENUE l „tip' 2 10 i.- 1: 6 74 So' N 25' 7S' 100 "° r'31.57' 9-Ji �"2—[5Z24G r---------- !di zo'i;s-_ - 1 I �I I I. v 1 1 - ---- -, --------- 1 1 FOR ; NORTH'-S i�iBUTOR I^�1 Ia> 1 ---- - - I ea I I K. --- - --1 _ I / .uH I •� 1 1 IS,. F.p.rnde., ✓ie. • a .. 1 -- - ) f L-... Pi20'I 1 1W 7% -1, 1 f150N- N 1- _I 1/4)7;' 1 • g't . 7 :1 130160 n11 I• 1 9 1. 11`--- .IS'Storm S<werror.men/ .1I (0.R.5835 py. 190) so=Ll 4 iorm oewer torement I. (0.B. 9/4 py. 142) 4 Storm Serer Ea-ement I (D.D. 9/LF7. 159) 20 1250.40 ,!- - -- ' ��:36 R 1• „ S49.89‘— --'------ e TRACT A /2/7 ts/11 I i 1,,11' 25,I 1 1 ao'=•, w 1 ' Tr .�,•51,E N it 1,4 V ll .,,..e.lt tj; L'A,1. / v� led L.A. • ' _•I�5v, 4.2S 1 I C1.41 I I No 1• 1 L.A. I/NL4wt7 i • .. �-. w, t74,I. I «JOIN 12 -4--.... _ a •L //s rNe.n• Ts',NIW kn T• 1..� • to • . 1 r. • 3• 97 I.: t W 1 ■ I ■ 20 N 11 ' ! 7: 1 207 ! 0. 1 i P. 1 i I t . I _ I II i 1 I I! T a rt is In• 35 I s. .., .. IS. • yl 1. 36 I'1 tel 100' 40.'” --1-12 9.76' ••- 3.E. 4 NsT. iNt 58.2• s1.24' ♦, 0 .o I Vf V0 74 30 3l • • The Purpose of this Appraisal is to estimate the Fair Market Value of the Air Rights over the proposed James L. Knight International Center in the City of Miami, Florida, as of April 20, 1978, in accordance with the Lease with Miami Center Associates, Ltd., as amended through August 28, 1979. Air Rights are defined as "The right to inclusive and undisturbed use and control of a designated air space within the perimeter of a stated land area and within. stated elevations. Such rights may be acquired for the construction of a building above the land or building of another, or for the protection of the light and air of an existing or proposed structure on an adjoining lot". Section 3.1 (a), Page 7, of the Amended Lease through August 28, 1979, provides as follows: 3.1 'Base Rent - (a) Base Rent shall be equal to the Present value of all of the rights of the Developer under this Lease (exclusive of the Renewal. Term set out in Section 2.2) to be determined by appraisal of two independent, fully qualified appraisers. Present value shall be determined as of April 20, 1978 and by agreement shall not be less than $1,750,000.00. LLONAftC A. f11S/. M A 1. Rf:AI. ISTATC AppffAISER AND CONSULTANT • 1 LIMITING CONDITIONS , or 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 froin sources thought to be authoritative; however, no responsibility is assumed for either unlessa survey, by a competent engineer, has been furnished the appraiser. The appraiser has no . present or contemplated 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 Opinions of valuation expressed herein are tinder current conditions and assume no liability for changing opinions or regulations either in Internal Revenue :Service ,'oi ad valorem tax law interpretations. LLONAItU A. (16t. M.A.I.. (II'AL CSTATC APPP.AISCit ANT) CONSULTANT 1 1 E • QUALIFICATIONS OF APPRAISER LEONARD A. I31 SZ , M. A. I Resident of Miami, Dade County, Florida, from 1925 to 1932, and since 1946. Actively engaged in appraisal of real estatefor 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 ofr 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. LI ON AHD A nisi. M A I.. HLAL (STATE APPRAISER AND CONSULTANT i • L t • er•r, � .•��t��s L':S'�%I'-.i rr +ram :•w.r_ ♦:r GFi(',ty'fT^, °'�It+'NFlOYIJ[:"-4 JAMES L. KNIGIIT INTERNATIONAL CENTER MIAMI, FLORIDA DESCRIPTION Or PROJECT LAND .- The land, "Parent Site", is located on the south side of s . E. ; 4th Street, extending southerly to the Miami River and lying between S. E. 2nd Avenue and S. E. 1st Avenue, if extended southerly. Survey by Biscayne Engineering Co., dated September, 1973, and revised September 13, 1974, to show boundary correction and area in square feet and acres, states the area as 171,759 Sq. Ft., or 3.943 acres, more or less. This boundary is practically the same as the subject "Parent Site", except 500 Sq. Ft. are deducted from the S. E. 2nd Avenue frontaged for the zoned right of way, thus making a net area of the gross site of 171,259 Sq. Ft. This comprises all of the land south of the I-95 Connector purchased by the City of Miami from the Lincoln Investment Co. There are two lots, namely Lots 35 and 36, lying northeasterly of S. E. 4th Street which were subsequently acquired by the City of Miami, but are not included in the subject development plans. Legal Descriptionof this land by metes and bounds is attached herco in the Addenda as prepared by the Surveyor, and identified as Parcels No. 1, 2, 3,.4,..11 and 12. The land as shown on Exhibit "A", Site. approximate widths ton". the north. side 453.00 Ft I11/L. On the south side on the Miami River 493 74 r Ft . 1<1/L. On the west side 359.80 Ft M/L On the :east side south of S. E. 4th Street to , Miami River 356.95 ""Ft . ,M/L (Lots 35 and 36 being excluded) The area may be Distributor is widened The southerly 20 ft. of the ;Property;along the Miami _River is subject to easement for i iverwa lk and " park . This area approximates 9,850 Sq. Ft. A triangular area in the southeast corner of the property, I)tr (:•:l7.r..n the southeast wall -of the proposed hotel portion and i:11c: • i:::ai Uiver and the E. 2nd Avenue Bridge abutment is designated as ari "Ar•cheolog•ical. Dig", i11 which there can be no buildings erected while under research. This area is estimated at (Continued) Plan, has the somewhat modified i the ;. LEONARD A. LIISz M A 1 REAL ESTATE APPRAISER AND CONSULTANT Downtown 7 • JAMES L. KNIGTIT .INTERNATIONAL CENTER• 11IIANII FLORIDA DESCRIPTION OF PROJECT - Continued 18,150 Sq. Ft., of which 3,350 Sc. Ft. are already in the easement area for the riverwalk and park. • • The area in the "riverwalk - park" and "Archaeological Dig" totals 24,650 Sq. Ft., more or less. This would leave a net area, free of restrictions and easements, temporary or permanent, estimated by this appraiser of 146,609 Sq. Ft., more or less. If the Lots 35 and 36 were to be included the total would be increased by 9,500 Sq. Ft-. to total 157,109 Sq. Ft. • • The easements for the riverwalk and "Archeological Dig" do not lessent the value of the property or its maximum utility to ally Serious extent as these easement areas are in what would normally be used as the desired "setbacks". The land is and will continue to be owned in fee simple by the City of Miami. Architects -Engineers estimate the net area of the "Parent Site" at 156,200 Sq. Ft., which this appraiser uses in licu ol a survey of the property. LI °NANO A IiISZ. 0.1 A I . REAL I.S TA TE APPRAISER AND CONSULTANT -L. ,..44.:,..,...,-;,•••...1:14,41;•,,qt.•.4 ((s JAAIES L. KNIGIIT INTERNATIONAL CENTER MIAMI , FLORIDA DESCRIPTION OF NEIGHBORHOOD The property is located in the close -in -Downtown Miami area in tile fast developing Fort Dallas -Dupont Plaza Section. - : • • '• • • f'. The area has been stimulated by the improved business activity and the expansion and construction of the Brickell Avenue office and condominium buildings to the south, and the high-rise office and hotel buildings proposed in "Ball Point" to the east. The vacant blocks in the Dupont Plaza are either under contract for purchase or have announced building plans. Adjacent on the north of the subject site is the 1,500 car parlling garage for the City of Miami and the 30 story office tower above on "air rights" owned by the City of Miami. Street, is 3 I)locl:s northerly where there lave 13een a number of The main retail.area and principal street, East Flagler • recent sales at increasing prices and considerable modernization undel•way. The Downtown Distributor of 1-95 is just north of the stil)j(!ct i)rei)erty, access off and on 1110S t convenient. -. • , , , • - • . The Downtown 3rd Streot ,just east property will have a People Mover will have a station on S. E. of S. E. lst Avenue, to which this subject connecting walkway with stores. • -:- •••-• ' ' -.. ,-. - • ' : • 2 .. -..' .. .- - -, - :' . , . .. . ._, . ..,, .., .. „ .. . r ,, .., .... ' • ' ••• 1, • . ., , , „.. . , ., *, . .. , .... ,. . " ' ' ' - ' ' ' .- ••• -.. ''' . .• ' ' ' " ' ' ' ' -• • -, ' ,. ' - • .. . . - . . , , ' .;...., _ . .. ., . , _., ,,, - ., ' ' . • " • ,,,, :-.: ', ' i'-.... ..-:.. '.,•., . , , , . ,. . , . , , _ , , , , , ' " - ' ., •.-.. , . '. ••.'' ':, .. „ -, .....• . ,' .• '.1 '••• '..-:,. „. . .. f., • ..'.', . -. -. ' --- . .- - . - '• -.- , ,. - . , -., ,... ,,',,--:„ -.,...',- . .. - . ..' ; : ... . .. LLONAFIO A nisz M . 14EAt. ESTATE AF3P4odseli ANO CONSULTANT SUBJECT the JAMKS L. KNIGHT INTERNATIONALCENTER MIAMI FLORIDA IMPROVEMENTS:. Oii this site of 156,2.0.0 Sq. Ft., more or less; will". 'James L. Knight International Center". It is a coordinated well planned development by the. architectural engineering firm .of';Ferendino,Grafton, Spillis,. Candela` `of Coral Gables, Florida. Reduced copies of floor plans aro attached hereto The complex will consist of: (A) A four story base building containing the meeting rooms, offices, storage and support :facilities to be operated by the City of Miami and the University ,of Miami, and meeting rooms, retail stores, food and beverage, storage and other support facilities to be operated by the Hotel. (l3) A 19 story tower located atop the eastern portion of the base building, containing 608 Hotel guest rooms. The tower portion starts at the 5th floor elevation, 81 ft. 6 in. air rights platform of 20,100 Sq. Ft. The Architects estimate the pool a t 3,260 Sq. Ft., and pool. deck at 5,800 Sq. Ft., totaling 7,060 Sq. Ft. in "air space" at elevation 17 ft. 4 in with bottom 4 ft above ground elevation. Total "air space" or "air rights" 27,160Sq. Ft. Although there will be separate outside entrances to the Cit•y's Ci.vic and Convention ,Center and the Myatt Regency hotel, these facilities, and those- comprising the University of Miami's Conference Center, will be inter -connected and not readily; distinguishable as separate entities. (Con tinued )` LLON AMU A LIISZ M A 1 . REAL LSTAIE APPRAISER AND CONSULTANT JAMES L. KNIGHT INTERNATIONAL CENTER MIAMI , FLORIDA SUBJECT IMPROVEMENTS (Continued) The City of Miami Builds (1) The Convention Center For. Its own Use: (2) The Conference Center For the University of Miami. The shell structure and foundations for the Hotel.` tower, and for hotel space in basic building for retail stores and services ( The Developer - Miami Center Associates, LTD, a Florida. Lu itr..d partnership —Under Lease .Agreement dated April 20, 1978, builds: (1) The Hotel on air rights, platform elevation beginning at '5th floor, 81 ft 6 in., 19 floors, "foot print" estimate by, this appraiser 20,100 Sq. Ft.•gross area, including :balconies .per .floor, plus -pool 1,260 Sq. Ft. and pool deck of 5,800 Sq. Ft. in designated "air space" (2) ). Banquet ; Hall and prefunction`:areas Finishing all facilities' in Hotel,"retail stores, rest.turants, lobbies, kitchen "areas, service areas for Hot•el only, includes :furniture and equipment. It is assumed the Developer pays real estate taxes on its building 'improvements only as per current court ,rulings. Its construction is being financed by a 30'year mortgage on its leasehold with Massachusetts Mutual. Life Insurance Co. 9 5/8RJo mortgage, ; 26 , 000, 000.00 paya ble monthly $220•,•998.00 - Term 20 years (30 year payout) As additional interest quarter - annually 1 1/2% of gross annual room sales. Item 4 of Page 6 of. July 20, 1978 Conunitment Letter specifies the requirement of a "ground lease from the City-, of Miami, for not less than 156,200 Sq. Ft.., :for not less than '15 years, Etc.," and "annual debt se vice of .651,076.00." Commitine nt letter, :also sh0c ifies additional interest payable quarter -annually 1 1/2 0 of gross annual room sales.. LLUNAHU A U1S2. M.A 1 . HEAL ESTATE APPRAISER AND CONSULTANT t 1 APPRAISER'S SUMMARY RECAP OF BUILDING AREA -LTIA5E';',,,,--,..-.:' -,......... „... .....„--.'-•'''''E-;:-'7•---:'•-•:-•'•-:--:;-'-'.•::,,:"..-.---...-..',J•„:-.••••,,...-•,:••:•.•,.-::-:-.:..,...,••••.,,,. j: -.-.....,;,;'..,7:11-.-.--.5..11EET,.,-','.-:SEEET.-...-...,•LEVEL.,.:,:[-:-..,:-:.1:;.„71.:,0.0Th-_,.:;i:,--1--"..Z-.•,ET,EITATION-,--i;:..-:"•.!.----..,.-SQ::-..'.•-:17-•.-..i.........,,. USE ..............„ ...... ........... . ,......... .,........-.. -.-.,--..,..•••,..-:„.„. --,....,•:: .,......, • :•.„„ -..... . . „: •.••• : • • - ,•--„ -::---:•,-........•.,,-.....,...•::-..-5-•.,-..-_.-....-...;•.:.•... -,....• .„,.. . ,...,.............,,,,..............„.„..„...._:...,.;,•..-::•-„,•-.. -.-..,,,-,-... Ground Floor-.-.--- --.•.1-B-7). - •-',..'-':'.',...2:-.',.::-.:‘•:-':::-,:',.:-.::..::::.:-::,'-,:.'•.--,1:-t.';',.-.•-:-:'::-.,,.- --:.:: .-'[-9.!,:::,...-,.:.-.::,::-::•..,.....:-,-H1L:q4;24(Vi--::: :-5o;p5p :: .•,:'. • --- -,:,.., ,:-..,-,..---:•.---,,,::::.•.,--:.,...,,...-.:2,.-H,..,..-.,.-...-_::,":::,:".,,,,,....,.,:..,,.::.. .. ,, • • - .--.,.-•.,,,..•-.•...-:.,.. , , ...., . ....:.........„.......„......, ......,....,•..„„., ....•-,...„.:.„.....,...„... nain Floor ' '• '- ---::A-..9.,-•:;:-.:-•:--:::::-;--•-,1St '....-•::-..:-•...-.',1......-,.2nct::':•••-"----::-„,'-.76",..i.64",---.:::;-••""-;"..":::-:-....:....',.]:•,-9,:.1.3:•,i•-,-,:0600._'!:"!,:;"'.,-.-•.i. ,.46,--,9775:-::::: - ,46..-,....:...;•:.-:•..nd--:,..--. •'•--':13d•-:-'-,'::i:::: --- ••• ' :.,-..87'--;--250••••...-....-....-•.•:••• • ' - ,....H,....,.........."---,-:,...•••, .:„.••• ,... •.: : ... • --- --:•-•-,:'..-.--.:--.:-.--...--.--..•,..H., . -,-....-,,............,•,•• ••,----•::,r•-.,..-.•..- '''''''',--..--:-:-..'",..."':•-:;•,.:•--::;:••'T:"_:-:;,,--_„,:,-.••,_.'..-,-,.i.-...:-•::::,...:..---.....-...,•••.;,,,-,-;,--•::. • :-.---:-•.-...:•:.::.11-44-':-2-.'11::;.:-.-•.1',.1-.:„.:-.:3.rd-:•;.••, ''4,17t4...''''.'-..:..--,,::-...",-",.....-.- I1..,6!!7...,0,•';9...99 .,. .. ....... .. , ._. • ,:•••:•.-..;•••,,., • •-...•,•,•,_ :..•_..,.,:.....,,-...:::::...,..... _ , 83 ' & B-5 A--2G 110 Roofs 31-9680 8- 470 1/2 Areas Total •floor Area Complex excluding Hotel 400,150.-:- 97,930 Air Space Stai-ti ploors rig at 5th yloor (20 100) Start of Hotel of 19 381 900 Total 19 Floors NTS jait Exhibits, Meeting Rooms Lobby, Stores University of Miami Conference Center, Lower part of Auditoriums University of Miami Staff, Upper part of Auditoriums -,• • • • , . • - • • • . . „ : • „.• _ . . -.•-• . • " • - • -.. _.•,. . • --. • . . . Total floor Area Comple with Hotel 789,110 ••• • • • • -"•-• • : •---•••••' • .-.• -.„ : :„ ....••• . ..• •:•••_••_•. 440, •• t.142.1A.2.A.4 • • ttet.V.41,14‘ ..6,,tavtatie • APPRAISER'S SUMMARY RECAP OF BUILDING AREA' LLONAliU A. IliSZ. M Al.. IILAL LSTATE ANI•i4AiSEI4 ANT) CONSULTANT PROJECT: JAMES L. KNIGHT INTERNATIONAL CENTER MIAMI , FLORIDA DESCRIPTION OF PROJECT ECONOMIC FEASIBILITY This appraiser has reviewed a number of studies in reference to this Project, including, "A Development Proposal by Worsham Brothers & Co. - Turner Development Co. Co -developers of Hyatt Regency Hotel", Financial Concept Memorandum dated March 2, 1979, by James J. Connolly, Project Director for the City of Miami, Brochure for complex by the Architects entitled, "James L. Knight International Center", Agreement dated April 1, 1977 between University of Miami and the City of Miami, Lease and Agreement between the City of Miami and Miami Center Associates, LTD (Hotel Developers) as Amended April 20, 1978, and as proposed for current acceptance in August of 1979, together with detailed financial feasibility study by Laventhol & Horwath as to the Hotel. Only portions of these reports are appended hereto. The studies show a reasonable cash floW from operation to make this a feasible project from both the City of Miami obligation to build the Convention Center and the Conference Center and retire the debt created therefor over a period of years and also from the Hotel. Some of the details of the room rentals expected and the expenses are attached hereto as well as a Summary of expected income due the City from Base Rent and Additional (or performance) Rent, but exclusive of proceeds of rental of facilities in the Convention Center. The value of $2 450 000.00 when reduced to a room basis is for 608 rooliis $4,030.00 per room land site value - value quite in lino for this :location. The land rent of $362.00 per room is also in line with hotel lodging surveys. Reference is made to the studies attached hereto in Publica tions of Leventhol & Horwath .for 1977 and 1978, wherein even $500.00 Per room land rent is in line with good (Continued) LEONAIlla A RISZ M.A . REAL. ESTATE APPRAISER AND CONSULTANT PROJECT: APPRAISER III 1II IIrI III I I.1 ■ I IIII.py.�i1.Y.Yld�I.iiil. JAMES L. KNIGHT INTERNATIONAL CENTER CITY OF MIAMI. FLORIDA ' S TENTATIVE ESTIMATE OF CITY OF MIAMI INCOME FROM HYATT REGENCY HOTEL (SOURCE -FEASIBILITY STUDY JULY 12, 1979 LAVENTHOL AND HORWATH ADDITIONAL OR PERFORMANCE RENT AND BASE RENT SECTION 3 OF LEASE - PAGES 6, 7 AND S YEAR OF LEASE 1 2- GROSS SALES PER YEAR 7GROSS ROOM RENTALS & GROSS FOOD S; BEVERAGE SALES 1982 $22,185, 500.00 1983. $28,616,900.00 3- 1984 4- 1985 5- 1986 $29, 471,'700.00 $33 780,000.00 $36,143,000.00 6- 1987 $38,663,600.00" 7- 1988 ;'$41,364200.00 8- 1989 ; .$44 267; 300.00 $47,373,100.00 $50,681,200.00 9 1990 10-1991 .PERCENT 3 . .09 PERFORMANCE OR ADDITIONAL "TENT PAYABLE OUT OF - AVA I LBLE CASH FLOW (HOTEL) $ 320,161.00 $ 368,396.00 $" .'675,600.90 $1,084;290.00' $1,159,908.00 $1;240;926.00 $1,328, 019-.00" $1,421,193.00- 52043600 ADD BASE RENT MINIMUM (NOT LESS THAN $1,750,000. PREVIOUSLY ASSUMED) $150,000.00 $ $150,000.00 $175,000.00 $175000.00 $200,000.00 $200,000 00 $225 $225,000.00 $250 0.0! 00000 NET RENT PAYABI1E TO CITY OF MIAMI 150,000.00 470,161.00 .396.00 543 850 600.00 284 1,359 290.00 908.00 $1,465,926.00 .019.00 S1,. 553 $1,671,193.00 1 • I� MAP. J6.NT� �\ r• • 1'cxr. JOIHTa._� UV/LM.IOW• S>e. r. Ulm TA►$L. PROFILE OP:' t{oTr_L:.TOW E'R E AID AT ' � av � L. t �`I' - a.11 gXYe►�►; F,'ThIa coat; cao.=.-T. 1 • 1 :: • I.'• .Mom' • 0 e o to • tit .14 co C% • HOTEL TOWER 15 M EPROM PLANS APPRA ISER' S SKETCH • PLAT OF PROPERTY AS WHEN ACQUIRED r . ' .:: NORM. • • " _ • • ;r =. s _:. _fi.- �� ._ . A III !I um i...1 � ,. J � ; .4._... �o a. ...:v-�1 4 , ui. iari L �.- I� i IMP tJII a A.IM tn•SU—I ■ e tI 4 =, t r ♦.I(I' /COCA • A ► (( i { ` ' a `' ••�� • :LJb • AMmDtD ?LAr` OF A PART OF FORT DALLAS PARA(=ea! 4• • - a+ •.I• I.411 _ 1 BLACK B AMENDED PLAT OF A PART OF ' FORS' DALLAS PARK 0-85) .. SE 3rd •- STREET t • /�' I^� • J 1 N. E. 3rd. ST. N. E. 1st. 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W} __� ``tt rj.—� 'r/ •-�' 1 C '.r:�✓ 411� {f .' }:'It' • • t r//. i �t�.� T"I r--_., r t t. 1__.____ ._.� .\.}.'. L. tf 1. is L 97 6'}�tl� c :•LL - � rl .tom., sl 4 tY, I �� 115�"r^+1....-_r t ---,( t L _ l CtlOaQ �. ..ii �.�t i+ 4._ ly o r; t� a ✓\ ..„ Llz '4' `rl t ' Cf•r v '� —.I✓': ''EECU t ` l.'r t f `t :c''t{ lQba r._ r rr: Yi 1•r�4•�f ✓�1 'j,• 1 .•. 1rt -i - 5 z. �i1.3 A �.'}`f l 1{,..,., ]l_it•\°r (1Pr '- E 'FfP:S-k iY= .1 , ii d , i t'.t-� t+�Mlli%i.%:,,, •, ..r:.i:..V c% L: j�;i� -#l: N.-•*i"C lMu.w- q �' 7 ..n•e,+;y. ,c710 ..t': .:2�?ffpa L! - frh U9.04 9-9. 03 z 1 r-.21 { n 40 !• , { ,1 r 11 wry``-��.r/f��:r F'!a''"l1�1� +�::•:i-'::; Ira �•• ,s „� J+1ii..:..—.h 41.02 E: 1t"••:11. 1-1 tit r +�-.\J �`.• `l S [JI3 J EC'iT ( i'' .il- -- A r, ,../WMWN11.t. CI A . 1( �•. t. Ii 1.11NU004 \ Z. 11111 LOCAT ION MA 13 4 • JAMES L. KNIGHT INTERNATIONAL CENTER MIAMI, FLORIDA VALIDATION PROCESS The purpose of this appraisal is to estimate the Fair Market Value of the Air Rights as defined in the Lease between the City of Miami and Miami Center Associates, LTD, as of April 20, 1978, involving the proposed Hyatt. Regency Hotel in the James L. Knight International Center in Downtown Miami. The principle involved in airrights may be expressed in terms of the value of the land before and after the taking of the vertical access layer. It is based on a consideration of the added cost of, or the savings in, construction as well as the reduction in economic value of an improvement erected on air rights compared with that of the same improvement if erected on unencumbered land. Alternate ways of expressing this are as follows:. A - How much will it cost to make the air space useable? How useable will it be? - Does the use of other levels in the total property contribute to or detract from; the optimum enjoy- ment of subject air space - in other .words:. does it contribute to the highest and best use of the total` property? The higher the degree of "compatibility" of the levels of. "space" working in harmony withthe highest and best use , of the property, the closer the sum, of .;the market values of the .interests approaches the fair market value of the property as a whole. The highest" and best use of,the subject site is for a high-rise hotel building with appropriate facilities within the structure in this Convention. Center Complex The design o1 the proposed structure is in accord .with the highest and best use. It will combine a Convention Center and a Conference Center paid for by the City of Miami, and a hotel to be erected by Miami Center Associates, LTD. Parking :facilities will be in the City owned garage of 1,500 spaces to be built just north ill the T ?5 Distributor. The garage trill be connected by wn Li:.: v to the :;ui,ject: site. LLONARD A. OISZ, AT.A 1 REAL ESTATE APPRAISER AND CONSULTANT J'Ai11ES L, KNIGHT INTERNATIONAL CENTER; MIAMI:,- FLORIDA VALUATION PROCESS (AS OF APRIL 20, 1y78) A PPROA CII (A) Value Parent Tract Site '56,200 Sq Ft., M/L From "Land Value" and Sales Data: Easterly half 78)100 Sq.; Ft @ $50.00 Sq.; Ft. (SE 2nd Avenue exposure and accessibility.) Westerly" Half 78,100 Sq. Ft. @ $40.00 Sq. Ft. (Interior inferior location) Total Ite (A ) mined Portions Being Appraised: Air Space (1). Hotel footprint 20,100 Sq. Ft. (2) Hotel .pool "& deck .7,060 Sq. Ft 27,160 Sq. Ft. In Easterly Half ofParent Site @ $50.00 Sq. (Sce appraiser's foot print diagram with measurements) (B) Advantage of 'unique location of the hotel in a convention center complex Uui:lt ; and ,operated by • the City of Miami, provides. an inclement to the Hotel „not available to other, surrounding competing properties - 'Add .25% or ,$12.50 .Sq. Ft.' = (C) Use ;of designated 25 unfinished "shell" areas built. by City of Miami totaling 97, 930 Sq. Ft. on the Ground floor . and the Main Floor as Per Exhibits B-1 and 13-2 cited in lease which are also noted on Plaits Shoo ts.A-2,and A-9,.:Listed in Section 12.1 of the Lease, Page 35, attached. hereto, @ $7.50 per Sq. Ft' $734, 475. 00 USE Total APPROACH (Cone ti.nucci)' (A) Rounded Out USE LEONARD A RISZ $4 A 1 Hl•L ESTATE APPRAISER AND CONSULTANT $, .90.5,000.00 3,124,000.00 7,029,000.00 ,358,000.00 339 500.00 734,500.00 2 . •23 ,000.00 $ 2,450,000.00 JANES L. KNIGHT INTERNATIONAL CENTER MIAMI, FLORIDA ALTERNATE APPROACH (13) Value Parent Tract Site 156,200 Sq. From "Land Value and Sales Data Easterly Half 78,100 Sq. Ft. @ $50.00 Sq. Ft. (SE 2nd Avenue exposure and accessibility) Westerly half 78,100 Sq. Ft. @''$40.00 Sq. Ft. (Interior inferior location) VALUATION PROCESS (AS OF APRIL 20, 1978). Total Itemized: Portions Being Appraised Land Value Hotel Portion Concept as a free standing equivalent hotel of same size, height and floor area*,.'' from ground floor to, roof, (1) Hotel guest rooms 19 floors 20,100, Sq. Ft. Eac starting at 5th floor (rooms at low elevation.'. not rent well) (2) Hotel uses 97,930 Sq. Ft. of scattered space on 1st and 2nd levels of Convention*Center - This is equivalent of 4 floors of 20,100 Sq. Ft. each, plus the 2 lower floors having 8, 765`Sq. ';Ft additional each floor. (S) 13uildi.nl;• would then have 23 floors with the lower 2 f loos. s oa which have 28,865 Sq. Ft. plus a pool and deck of 7,060 Sq. Ft.., making a total "footprint" of '35,925 Sq. Ft., Ai/L, and a total floor aroa of 486,890 Sq. Ft. (41) Using a 1 AIt (Floor Area. Ratio) Common .to Downtown Miami: of 3.0 to 1 is minimum land area desiredof 48.6fi9 SCI . Ft:. Pt $50.00 Sq. Ft. $2, 43,1, 450.00 11SE (L)11.inuc(.1) LEONARD A ❑ISZ. M.A I . REAL *STATE APPRAISER AND CONSULTANT Cont 5,000.00 124,000.00 7,029,000.00 435,000.00 JAMES L. 1CNIGHT INTERNATIONAL CENTER MIAMI, FLORIDA VALUATION PROCESS .(AS OF APRIL 20, 1978) ALTERNATE APPROACH (B) (Continued) (5) 'Continued On this concept there would be no additional costs for elevated "air rights" platform at 81 it . 6 in.; elevation nor . costs forconstruction. at higher levels, nor costs for, increased.'operational costs at higher levels. The 97,930 Sq. Ft. of, space is normally necessary, ,to> t11e successful operation of , the hotel. ADDITIONALCOMMENTS': On Claughton Island there are. 2.29.acres=on.the south side of -the Miami River .planned ;and designed, for 800 rooms having a FAR of .6.0. The Ball Point Development for a hotel tower would have a FAR (Floor Area Ratio) of 6.11 with 550,000 Sq. Ft. and 630 rental units on a land area of 94,500 Sq. ,Ft.. The City of Miami Planning Board report of February 1979 re commends the Downtown Zoning Ordinance Requirements on subject area should be CI3D-1 Classification, with a residential FAR of; 6.0 and Miced Use 7.0. The total. floor area of the project, excluding the hotel, is estimated at 400,150 Sq. Ft.,, which with the 19 floorsof.tho hotel at 381,900 Sq. Ft. phis poo.l. and :pool deck. of : 7, 060 Sq. Ft: total 789,110 Sq. Ft. for 156,200 'SQ. Ft. of land is on a:Floor Area Ratio of 5.05 to 1..- Another approach which is acceptable would be to evaluate the "Footprint" of the Hotel as in Approach (A) , but modify Part B thereof to evaluate on a Sq. Ft . basis ;the"air space" adjacent thereto which would affect the "Quiet Enjoyment" portion of the lease in Section 19, Page 54, as to its "air, light and view". The r. osu t f:s ustima ted by this anpra is or are approximately the same: as es time t.ed heruitl of .+7.JIJ, S00 .00 LLONAIIO A EIISZ M A I . HEAL ESTATE APPHAISEN AND CONSULTANT JAMES KNIGItT INTERNATIONAL` CENTER MIA,MI APLORIDA ::,,VALUATION PROCESS (AS OF APRIL70, 1g7S) ALTERNATE APPROACH (B) ADDITIONAL COMMENTS - —.Continued The "air rights" above the complicated structure of the story portion on the west housing the convention auditorium, ballrooms, kitchen, Etc., would be costly to Provide supports for the additional rooms or hotel above thereof, lessening the value of the air rights to a nominal amount,., besidesbeing in an unfortunate. location next to the blank wall of the Bauder College Building. LE.ONARD • RISZ. M A I . REAL ESTATE APPRAISER AND CONSULTANT a 4 JAMES L. KNIGHT INTERNATIONAL CENTER M I iA M I , FLORIDA LAND VALUE (AS OF APRIL;;20, 1978). Land values in the Downtown Miami area have increased steadily in the past three years with the revitalization of business. This has been due in part to the expanding economy and also to the growth of the area as a financial and shopping center. Increase in office rents along with the growing scarcity of space is reflected in the higher land values. Properties on East Flagler Street in 1976-1977 that sold for. prices of $75.00 to $85.00 Sq. Ft. for inside parcels are now at $100.00 or higher per square foot. Reference is made to Sales No. 6A'and ;6B of this report of the Ponce de Leon Hotel Property and the IParamount Hotel Property under Sale No. 12. Closer to the subject property is Sale No. 10, a small piece of land at 29 S. E. 1st Avenue. This sold on November 1, 1978 for. $92.73 per Sq. Ft. ,Sale No. 11 at the northeast corner , of.. South Miami- Avenue and S.. E. 2nd Street . sold in`, July of 1978 for $46.40 per Sq. `Ft . , on a gross area basis or $50.88 Sq. Ft. on.a net; area basis. This sale excludes the ,purchase: of any tenant lease The sale vas a delayed closing, for which some allowance should.be made- • These sales, together with the activity in "Ball Point", the contracting for 3.blocks in the. Dupont Plaza, and the announced 40 story office building of the Southeast Banking Corp. on the last remaining block in the Dupont Plaza, show that in the reasonably near future _there will be substantially more business and commercial activity conducted in the Downtown Miami and consequently a iesseniii;;'of supply of vacant land. Zoniing in the subject neighborhood is C-3, which has no required p:ti 1 i a;!: on site, nor subject to, severe height 'imitations. Hence, with tho high Floor ,' Area ,Ratios,: the land is more productive and consequently tly more valuable. Thu land area:of the subject property is'156,200'Sq. :Ft. ., more or less;. The estimate of the fair market value with corner influences and frnn t a s;•e on S. E. 2nd Avenue, S. E. 4th Street and the Miami i:i . >>•; I. ch c:Unvenien L access on and off:` I-9 5 DowItown Distributor to I-95, .:; :.ii average of $.15.00 per Sit. Ft., overall or $50.00:Sq. Ft. I oi• S:,lr: oast half o.t: the parcel and $40.00 per Sq. Ft for the west half or the parcel, or $7, 029, 000.00. i:s'I'T MAT1•.D FAIR MAIU(E'I' VALUE LAND (4I/20/78) $7, 029, 000.00 L .ONAH:) A IIISZ M A I.. REAL ESTATE APPRAISER ANO CONSULTANT • SALES Al 1 A.A1 I VO I ,".• .• 11-_-___I---- . ii /;• ':', 11 `:.'Po•-. • • " . — 5.1:•:.:!•':1' I —f 't 11 iiitill, ';': • ti •- ::1, 1, , Ft:: El 0 N T iL Li. ' ,•-• -; --- --- - • ,, . 5-.1 , e ...:............,., ... . .1 _t... ...: 1t . - ..... ...l . ‘‘‘, .. 1 11 • .. ,••'••. .•.' 1••••• \I. . - A,Fki< • .: ...P........ 0; u; ..- ,, . . !i • -, • I , i 4.:4- • .i-. w i .: ..y.:.,..i , 1 •ig ; ;,1 LIA:i17011TP•R7.HELL ,r . 'T.)" ..... 1 , LI", 1 • • 1,- : - 1 - I S w. 2 ..S, • • . ,.... N W 16? • 1 • .t out P&RNICIG 0 Tree? .•0 Si Joe f'o,oer- Co •s'OnOSO t •4 106.0 eJ. ,s • • • C. arta+ Pf-40 lniIthrr InIerpr,sos, /d SCALE2I00 FT. dt,11 S41VS ..:47a4.4.. / O / / / / /.1 • / °IQ V / s a •P 1 V 11 I I I "•••• I 7.7 • t: 70 9:31 ""s:. ar.. \ r r • BO 70 BISCAYNE I\ V C. L 1. t Y1 8 • • -4 1.1 0 tr. rrnl r— .1•• 70 r, • .••• .10 .......... 1• • = aja • -`'st• - • rt• ......................... 0 J • SALE RECORD A1IAMI, FLORIDA OR DADL County 9822 PG. 49.'KIND .W. D. GRANTOR- GRANTEE LEGAL: Magnuson.Corporation City of -.Miami Sate No. 1 SUBDIVISION rT 1)ALLAS PARK AMENDE P13 : 4/85. SECS' - RGE. DATE ADDRESS ADDkESS` .105-77` Lot 3G, Ft. Dallas Park Amended,, plat Book 4 Page 85 SIZE & AREA: 50x100' F. Ft. x 5 ,000 Sq'. Ft. ht/L N W Corner of: S. 'h. 2nd Avenue and, S...:E. _4th Street' STAMPS. Stole $ 855 00 Surtax $, 313.50 CONSIDERATION: $285 , 000. 0 IMPROVEMENTS: None. ZONING: C-.'. Central Commercial'-' LAND - UNIT PRICE: LESS IMPROVEMENTS • LAND ONLY: Per F. Ft. $ 57.00 Per Sq. Ft. $ Includes corner influence and negotiation ,allowance: Asking price 2 years earlier. was ,$50.00"Per Sqr, Ft. Current Land Value incdi.cated approximately $65.00 to .$G7.`50 per Sq. Ft. LEONARD A. r3ISZ, M.A.' , REAL ESTATE APPRAISER P. f �1•IC��� ti n• �• Per Acre SALE RECORD MIAMI, FLORIDA OR DADE County 9826 PG, 2208 KIND 1V.- D. Patricia Hotel of Fla. Inc. and GRANTOR Philip Keidaish and Burton' ADDRESS 126 S. E. 2 Street, Miami, R. Levey Florida GRANTEE City of Miami ADDRESS LEGAL Lot 35 less easterly5', •Ft.. `Dallas Park Amended, Plat Book 4 Page 85 Sole No. SUBDIVISION Ft.. Dallas Park Amendec1 B°''4/85 SEC. TWP: ROE.' DATE 10-11`-77 SIZE & AREA: '50'x95' M/L F. Ft. x 4i.750. Sq. Ft.':M/L STAMPS: Stole S 1', 702_. 50 Surtax $ 624.25 ` IMPROVEMENTS: 312 S. F. 2nd Avenue, Patricia Hotel 32,900 Adjusted Sq.` Ft ZONING: C-3 CONSIDERATION: $567, 500 . ( LESS IMPROVEMENTS' LAND ONLY: LAND - UNIT PRICE: ' $ Pcr F. Ft. • $ ? Per Sq. .Ft $> Sale 9-1.4-75 OR 9153/888 for $330,000 00; 69.45 per. Sq. Ft. Land;; and Building. Assessed,Value: Land $ 76,000.00 Improvements $279,306.00 Total $355, 30b.00 Per Acrc Building; was in process ofleing'renovated because of violations. Sale at .that time indicated nand: value of $45.00 per Sq. Ft. and Depreciated Valle of building at $3.30 per Sq. Ft. per floor The . sal.e to City of Miami 10-11.-77 for :$567,.500.00 indicated approximately $52 50. per Sq.Ft._for.the 'aland and $6.00 .per Sq. Ft. depreciated value ;for the building plus an allowance for t: uipinEii:t:.: nd .ttirniLure , and no goiiaLion a 11.ovvanee . Correll-L• Land Value ;irppr•oximate.ly $62.50 ,to. $G5.00 LE'ONARD A. UISZ. M.A.I., REAL ESTATE APPRAISER & CONSULTANT Ft. SALE RECORD 950 Sq,. Ft Al/: DADE County Sale No. 7 SUBDIVISION CITY OF MIAMI -- NORTH SEC. TV/P. RGP. OR Y DATE November. l , 1972 7966 PG. 580 KIND 1Vnrr ant; Deed GRANTOR Clyde Court. Apt. Hotel, Inc. ADDRESS Roosevelt: C. Rouser, Pres. GRANTEE John V. Howard 2/3 Interest ADDRESS and John J. Price 1/3 Interest Clyde Court Apartments - 3 story building SW corner of 5 S. E. 2nd Street and S. E. lst Avenue (metes and bounds description and includes part of TEC Railroad Spur) LEGAL: SIZE &AREA: `149.G it s L23.52 . Ft?.. end, .10 <rt.. x 149 STAMPS: State $ :1,3.50.00 IMPROVEMENTS: ZONING: LAND = UNIT PRICE: 22.56 Per Sq. and Building Sale apI)cars, to be below the market at ttlie to adjust for cO nparabilitY. LEONARD A. UISZ. M.A.I., REAL ESTATE APPRAISER & CONSULTANT 450,000 Old Per Aci mimit , FLORIDA SALE RECORD Sale No. 4 (A) DADE County OR SUBDIVISION City of Miami. B/41 SEC. TWP. RGE. 8310 PG. 752 KIND W. D. DATE 7-30-73, GRANTOR Trans -European Properties, ADDRESS . GRANTEE Ultranlont Properties, Inc. ADDRESS LEGAL: Lots 8 to 12 inclusive, Block 126N . City of Miami, Plat Book B/41 • T-00x125' SIZE & AREA: 150x112.5' F.Ft. x 29,375 Sq. Ft.' STAMPS: Store $ 3,750.0() Surtax ,375.00 'CONSIDERATION: $1,250,001 IMPROVEMENTS: Part 2 story stores and lofts, SE .1st Ave. , , • ncl S. E. 1st St. frontage. C-3 . ZONING: 1,1 LESS IMPR0VEf.1ENTS •:$ LAND ONLY: ,, LAND — UNIT PRICE: $ Per F. Ft. $ 42.55 Per Sq. Ft. $ Per Aor, , . • , d Lanand 111.1ilding LPONAVID A. RISZ. REAL ESTATE APPRAISER & CONSULTANT • it SALE RECORD MIAMI , FLORIDA DAD.: County Sale No. 4 (11) SUBDIVISION City of Miami B/41 SEC. TWP, OR 8310 PG, 753 KIND Vit.D. DATE 5-30-73 GRANTOR Albui y Bros. Inc. ADDRESS GRANTEE Ultramont Properties, Inc. ADDRESS LEGAL: Lots 13 & 14, Block 126 N, City of Miami Plat Book BPage: SIZE& AREA: ST AMP 5:. 1,350.00 RGE. F. Ft. x 12:500 cat Surtax IMPROVEMENTS: .`119 S . E. 2nd3treet-, former Alhambra Hotel Z_ONING:''. LAND. -UNIT C-3 PRICE: $ Comb na t ion 495.0 CONSIDERATION $450 ,000. Per F. Ft. $ 36, 00 ,Per Sq, Land and Building (A) SE. lst , Ave .- & SE 1st St. frontage;' .(R) SE 22S.t. frontage . aver age: ,1, 700, 000 00 Totaar area 41,875 Sq. '.aft. Current7:y not on the inarkeL; as the askingprice. Pcr Acr 42.55 Sq. Ft. 36.00 Sq. Ft. 40.60 Sq. Ft. ias been quoted 'i1c11o1• t c,clry I;uZ.n d clown o:C Lor of $1., 000, 000 .00 prof ii; altos agc.),' or .;,GO.Ot) i o ; G .50 per Sq.. Ft. over-all average. I..Fr/PA ,gn n rI r •, A r?rr 11.r,.et r•n.trttt • a year M I A M I, FLORIDA SALE RECORD Sole No. 5 DADE: County SUBDIVISION North City of Miami 25/75 SEC. TWP. 2GE.. OR 9299 PG. 211 KIND 1Y • GRANTOR:.Ilol:e T. h1aroon ADDRES5 GRANTED I141ph. F: Pelaia, Trtisee ADDRESS LEGAL: Thal part .of Block 1273 "Avenue, .Tess Lhe N 102.5' of the W 135' thereof, and also less;the E 125' thereof. A/K/A Ingraham Parking Garage. 22G ;S. E , lst;Street SIZE & AREA i91 . 9x100.1' F. Ft. x,. SE 1 St. 9,1.99 Sq Ft. - SE 2 St. 31,221 Sq.Ft. Total 40.420 Sq. Ft CONSIDERATION: $ 2 , 000 , 00 and 137.6'!' x 226.9 STAMPS: State $ 6,000.00 Surtax 2,200.00 IMPROVEMENTS: 5 story parking garage with• some stores. Gross floor area building 200,485 SF, erected 1945. Adjusted SF as per Tax Assessor 99,999 SF LESS IMPROVEMENTS LAND ONLY: ZONING: C-3 LAND,- UNIT PRICE: $ Per F. Ft. $ 49.48 Per Sq. Ft. LAND AND I3UILDING;,,. Subsequently transfered to Greater Miami Federal S & L,<4/7G OR 9:33.0 I) 1.591., samo pxicc. Sinco purchase; and expiration of ].case to. APCO the building has .undergone extentive clean up. Sale -Pried $2,000,-000.00 Less Dep. Value of Building $ 500,000.00 $2.50 per -Sq.; Ft. Leaves to Land 'Si,500,000.00-.$37..11- her Sq. Ft. average overall a $50.00 Sq ` Ft . $50.00 Sq. Ft. $30.00 Sq. Ft. ?nil Ave. r•ont:ite SE 21-1d St. frontage AJ Loc :Lion• Value As of l SE st St. ironL ge SE Day ;of Sale 9,199 Sq. Ft. 18,576 Sit. Ft. 12.,645 Sq. Ft. Current 'Value adjust for 3 years ci i . 5)q, per jfeai is. 26`,/0 or 1r:s i.c.a ily $62.50 to $0 1. 00; per Sq. Ft . South si.de of property not particularly -desirable. LLONARD A. IIISZ, M.R.I., REAL ESTATE APPRAISER t4 CONSVLTANT Per Acr SALE RECORD • • DADE County itSEC._TWP. RGE. 1; - _ !�. OR is 10082 PG. 2081 KIND Warranty beed DATE June 30, 1978 Florida National Bank & Trust GRANTOR :. Go • ADDRESS C/o William Castrillo 4th F1. GRANTEE Moonstone Investments N. V. ADDRESS 1840 Coral Way ALiain .,_F o •� 1�_ Lots 14 and 15, Block 118:North, City of Miami Pint Book B, Page 41 LEGAL: Sole No. 6 SUBDIVISION CITY Or MIAMI - NORTH SIZE & AREA J.00 f t x.140 Ft. = 14,000 Square Feet STAMPS: Stole $`� :350.00 Sur tax $ 1, 595.OQ IMPROVEMENTS: 239 East F1a�1er Street, Ponce<de-Leon Hotel ZONING: CONSIDERATION $1,450, 000 • LESS IMPROVEMENTS`: LAND ;ONLY - LAND - UNIT. PRICE:' $ Per F. Ft.$ 103.57 Per Sq'Ft.: Land and Building Building 76,122 adjustocl Sq. Ft.erected 1923 Assessed' Value Sale. Pr::i.cc $1,',450,000.00 Less Doprcciated Pua 1d:i n:. Value $ 400, 000.00 Lcaves TO LAND $1,050 ,000.00 - 14,000' • . LCONARD A. UIST. M.A.I., REAL ESTATE APPRAISER ti CONSULTANT Per Acrc 70 150.00 .00 Sq. Ft SALE RECORD 6 Sole No. DADE OR County 10405 RG. 1051 KIND \VD SUBDIVISION SEC. TWP. RGE. BATE May 30, 1979 GRANTOR_ Moonstone Investments N.V. ADDRESS Jaime Saleem ADDRESS coo Ilector J. Tate GRANTEE Angelo Gugliotto, Trustee LEGAL: Same as 6a - Lots 14 and 15, Block 118 North, City of Miami B/41 Subject to existing mortgage (original amount $1,150,000.00) SIZE : AREA: 100 140 STAMPS:; State I PROV.E'MENTS:. ZONING: LAND 1 2S7.00 CONSIDERATION: 570".�00� � Surtax ..�� , 9-.R.-Fla gler St. Ponce.de Leon Hotel 2,290,00 LESS IMPROVEMENTS $ i PerF. R. $ 163,57 Per Sq. Ft.. ; S UtdIT PRICE: S Land and.Building Sale Price, $2,290,000000 �' �" �500,000.00 Less' Dcpr a value Building , = $12? SG Leaves To 'Land $C,'150 Sale .details not verified -- appears hi LE:ONARD A. r;IS7., E.1,A.1., REAL ESTATE APPRAISER It CONSULTANT • Per Act Sq.. Fto SALE RECORD DADE County Sote No, 7 SUBDIVISION CITY Or MXMIY - NORTH SEC. TWP. ' ' RGE. OR • 9982 PG, 195 ' KIND Warranty Deed DATE March 22, 1978 GRANTOR Junes W. Dickey ADDRESS GRANTEE Castropol Building Corp. ADDRESS 2233 N. W. 7th St., Miami LEGAL: Lot 13, Block 118 North, City of Miami, Plat Book B, Page 41 SIZE & AREA: J0 f ▪ 140. Ft. - 7,000 Sq STAMPS: State $ 2,025.00 Surtax $ 54,7.80 CONSIDERATION: $675,000. 3 story building - 219-223 E. Flagler St., with 1st floor IMPROVEt,1cNT5; Len its of-F1ors-iieair hoes, aricf Burger -King RestauraiiE LESS IMPROVEMENTS $ ZONING: LAND -'UNIT PRICE: Building Sae. Price Less Depreciated Building Value Leaves TO LAND LAND ONLY: Pcr F. Ft. $ 96.43 Per Sq..: Ft. $ Land & Building adjusted square feet - erected 1921 Assessed Value $675,000.00 $150,000.00` $52U, 000.00 - Adjustment to current market indicates $85.00 to LEONARD A. 13157., M.A.t. 1 I:AL ESTATE APPRAISER & CONSULTANT ' Per Acr, ,257.00 Sq. Ft. • SALE RECORt C OR DADE County 1003E PG. 929 KIND Warranty Deed SUt3DIVlSION SEC.. TWPI i2GE. DATE May 15, 1978 Suleio. 8 CITY OF MIAMI - NORTI: GRANTORWometco Enterprises, Inc. ADDRESS GRANTEE Puerta de Las Americas, LTD ADDRESS 2628 Biscayne Tower, Miam: LEGAL: 16, and East .04 f t . of Lot 6, and West 15 ft. of Lots 4 and 17, Block 117 North, City of Miami B/41 &AREA: ` G5 ft. 290 Ft. = 18,850 Sq. Ft'. M/L 65 ft. on East Flagler Street and N. E. 1st Street .(Block to Block) SIZE STAMPS: State S _5_,2110_.lio_ Surtax $ 1, 92 = 00 IMPROVEMENTS: 11.i.ami,Tli.&t_er w th._5 n7 s. 14LL E F1ng1r,r 2 story, M/L ZONING: LAND - UNIT PRICE: 44,364 Sq. F LAND ONLY: Per F. Ft. $ Per Sq. ,F• t. �:. Adjusted, erected 1947. Assesse Sale Price Less Depreciated Value Building Leaves TO LAND Land Value Allocted: East F1:i gier Street front. N. E. First Street front. $1,;7>0, 000.0 540,000.00' ($12.00 Per Sq. $1,210,000 00 G3 G6.Sq, Ft. overall .or: e - 9,100 Sq.Ft . M/L @ .$32.50 e 750 Sq,..Ft M/L @' $47 00 Financing by Capital Bank a 10% Interest Mortgage Ad:j a st:nou s: to Current Marko t: lndiica tes : `a1 but ,$O0.00,, to: 95.00 per 'CONSIDERATION: 1,75.0,0C Per Acr 880.00 Ft. $538,50t average SF''; M/L SF'I1/L • Sc. it. LEONARD A. IIISZ. M.A.L. REAL ESTATE APPRAISER & CONSULTANT Sale No. 9 CITY OF MIAMI - NOR' RGE. )957< PG. 781 KIND Warranty Deed Betty Jane Ogden Garvey & GRANTOR_ Dorot:ty & L. G. Wright ADDRESS GRANTEE S. G. & S., Inc. LEGAL: March 28, 1978 ADDRESS Lots 19 and 20, Bleck 104,Nor:th, City of Miami Plat Book B, Page 41 Miami SIZE E. AREA': Oft. x150 . • 13,500 Sq." Ft. • Northwest corner': NE 2nd Avenue and NE 1st` S Comet STAMPS: State $3, 075.00 Surtax :$ 1,127.50 CONSIDERATION: $ 1,025,0 2 story Buildings - Stores". on NE 2nd Ave. & IMPROVEMENTS: parking garage on ,Jest' si,_U` & tipper f.10.0.ra. or 12.5_cars LESS IMPROVEMENTS . $ ZONING: LAND - UNIT PRICE: Building Salo Price. Less ))precia.ted Building :Value Leaves TO LAND iti.l ju�;•tanent `t: o Cur}.cn•t Lia1 LAND ONLY:', Per F. Ft. $75.93 Per Sq. Ft. Land and Building 4,1]1 adjusted Sq. Ft erected 1,025,.000.0 2 53; 000 0 772', 000,00 1950 Per Ac Assessed .` Value $161, 024.00 Stores @ $15.00 ! Sq. Ft. Garage @ $7.50 Sq. Ft. 1 „500_ Sq. Ft.. = $57.19 Sq.- Ft . M/L (Including�Corner Enhancomon 1) 3 :o . in d c: tes ;;52,5O Sq, .t LEONARD A. t1ISZ, M.A.I.. REAL ESTATE APPRAISER 8, CONSULTANT More or Lus.; • SALE RECd'ftb SkMm 10 GRANTEE .Natan Rok, Trustee ADDREss 72 E. .Flagler St. Miami, Fla LEGAL: N 25 ft. �of S` 75' ft. •of Lot 11; iU 5 ft. of N 25 ft. of S: 75 ft, f ft. of S 5 1 , bAb1; County SUt DIVISION SEC, TWP. RGE: OR 10203. PG, 121 KIND WVD DATE 11/1/78 GRANTOR The Bank. of Miami, • r ADDRESS of Lot 12; The N 25 ft. of S 50 ft. f t . of VI 5 f o•" o , o• oc 121• North, City of Miami, Plat Book B mortgages) (29 SE 1 Ave.) SIZE & AREA: 50. ft. ' x 55. F. Ft. x 2, 750:::Sq. F.t. Vacant L.anci 29 SE lst Avenue, 25 . ft. north of S. 1;. lst Street STAMPS: State $ 7G 5 00 Surtax 166.65 CONSIDERATION: $255,000 None — vacant . land IMPROVEMENTS: Z.ONING: LAND- UNIT PRICE:. Confirmed sale. IE"igh unit value 2'. 73. shallow cdepth LESS IMPROVEMENTS LAND ONLY: LEONARC) A. IJIS'L, h1.A.1., RI_AL ESTATE APPRAISER B. CONSULTANT Per A SALE RECORD MORTGAGE oR Sole No. 11 DADE County SUBDIVISION CXTY Or MIAMI_- NORT1 SEC. TWP. RGE. 10,102 PG. 1743 KIND MORTGAGE DEED DATE_.Yuly 20, 197$ Properties, Inc. Mortgagor: Florida East Coast / ADDRESS Tibor. Hallo, Pres. .Mortgagee: Robert Revit z ADDRESS LEGAL: Lots 11 and 12, Block 125 North City of Miami B/41 Purchase Money Mortgage $440, 000.00 @ 1% over ` prime rate of Southeast First National Bank of Miami SIZE & AREA 100 ft. x 125 Ft. _ ' 12 500 S . 'Ft. M/L (Formerly llopkiis Carter Hardware Co. STAMPS: Stott $ Surtax $ CONSIDERATION. It',PROVEi,1ENTS: Vacant Parking Lot at Northea .t col; iel_._O.E. S E. Second Street and South Miami Avenue LESS IMPROVEMENTS .' $ ZONING: GROSS"AREKANDfi1L�l YAREA $50.8S LAND -UNIT PRICE: $ Per F. Ft $4G.40 Per Sq' Ft $ Per A (Corner) Closing of sale confirmed with R. E. Broker at $580,000.00 which is $46 .40 Sq. Ft. Broker says buyer intends toerect buildi.nz for U . S . I: mii ratien Services. (Excludes " price ' paid f01 any :cellan . leases. Sale was a delayed " closing. Mortgage form Principal $:60,000:00 due .7/21/.79 $190,000 00,.due 7/21/S0 Balance $190,000.00 due 7/21/81. Buyer deeded to City of Miami 3./33./79 OR 10354, P 297 W 5 t t. of Lot 11 and liodCit 5 1: t:. of Lots 11. and 1.2,, which is 1,100 Set., FL Leaves net ;;round floor area o1' 11,400 Sq. Ft. City of Miami granted to property owner. 5/4/79 " 011 10334, " P 297 perpctt:al cxc3.usive easement, air rights over these 5 ft. strips, bcgi.3111.iUL at 15 ft. height above grouncl. elevation.. LFONARD A. f71SZ. f+1.A.1.. /141,AL ESTATE APPRAISER & CONSULTANT SAME RCCORD • Snlc No. 12 L DADE County SUBDIVISION SEC. TWP. RGE. OR 97r 22 KIND 8 P\VD DATE 7/28/77 5G. GRANTOR Miami Caribe Investments, Inc\DDRtSS. GRANTEE Aren Florida Corp. ADDRESS 600 NE 36 St. Apt. 1223 Miami, Florida LEGAL: parcel I - Lots 17 & 18 & W 50 f t . of Lot 1, and S 50 f t . of Lot 4; also alleyway 10 ft. in width on Lots 1, 19 & 20, described as south 3 so. l Lot ftless W in widthft. over}1Loto4 described as E 7s19 ft. ofdLot; 4 also alley less S 50 f t . thereof. Known as the Paramount Bldg. Parcel II - W 43 f t . of N 100 f t . of Lot 4, known as the Bradford `l 6tol. Parcel III - E 100 ft. of Lot 1 and A/K/A portion off_N1City Bldg. SIZE & AREA: 29, 700 F. Ft. x B/4:L STAMPS: . State IMPROVEMENTS:: ZONING: 9, 900.00 LAND UNIT%PRICE: 100 FF 50 FF 57 FF To t a urtax ,600.00 Per F. Ft. CONSIDERATION: $ 3,300,00 LESS. IMPROVEMENTS LAND ONLY: $ 450,00 $ 2,850,00 $ 111`011 Per Sq `Ff.S` _ Per Acr Land and Building Over-all Price 251-263 E. rlagler St. 250 N. E. lst St. 26 N. :00 3rd Ave., building area 44, 581 adjusted Sq.. '• 1977 f4a10 indicated about00, $9G.'per Sc1. Ft...',.. -average... P -..Sd. apt 'land': Ad;iustinen't; to Current'. Market woulcl after deduction, foi main btl i. t.cl:in indi.catO '.I bbtitt $1OO. O0 •to :110.O0 e Pr Scl.; F .;: LEONARD A. li{ST., t1.A.t., (ZEAL ESTATE APPRAISER h CONSULTANT rice per i 1 1 1 I I 1 �4. I� 1 •t 't CITY OF MIAMI/UNIVERSITY'OF MIAMI JAMES L. MIGHT . INTERNATIONAL CENTER raIAMI, FLORIDA MARKET STUDY AND FINANCIAL PROJECTIONS, JUNE 1979, TTT. mARit-i AREA CHARACTERISTICS 1979. Year PROJECTED AIR PASSENGER TP,. Yr.IC NTA tI "`I1 TERNATI0NAL AIRPORT Domestic Nt.nb er (Mi•llions) Percent Change` Passenger "Traffic International, Percent chance' Number' (Millions) 10.9 9.07. 6.6 10.77., 1980. 11.6 . 6.4 7.3 9.7 1981 12.3' 6.0 7.9 8.8,. 13.1 6.5 8.6 8.1 13.8 " 5.3 9.2 7.5 14.5 5.1 9.9 0 1982 1983 1984 1985 Source: LOCAL -MASS -:-TRANSIT.- 4 10.5 15.2 6.5N oward, Needles, Ter en- and .Beroendo z=,.: Consul•ting "Engineers. u Mctronolitan-Dade Countv:•Ranid Transit Svste'n \j'"> - One of the most import n developments affecting Dade and Do--n`or, n n particular rarid t an.^.l i c sYs t em Total (Million. 17.5 18.9 20.2 21.7 23.0 24.4 25.7 County; in genera: is the recent start of>,const action Cons sruction .has begun on "the development of elevated rail system to extend from Kendall Drive',,: P.ialeah the western portion of the Central Business District and have 21 station loca- n Southwest oz a rail 1 -wile, is �. to north of.!Adam International Airport. The system -will pass through VISITORS TO DADS COUNTY AND THE STATE 0r "FWRIDA; Air: Auto. Total Average annual FLORIDA Year drrill a1s arrivals arrivals percentage change (000) ° (0o 0) (000) 1974 6,75017,2502t►,000 r .�1975 7,362 19,346. 26,"708 = 11.3% " 1 "1. 1976� 8,027'. 20,900 28,927 7.7 19),71 8, 513 20,662 29,175 .9 � ,309 22,060 32,369 10.9 _ 1 1978 10, C-: i r, �� Air Auto Total arrivals arrivals arrivals (000) (000) (000) Source: Florida Department of Commerce, annual tourist studies. ..r W Iv - I -•••.,vim I w +I v I•••••••I•••. gommOr•w. •. Fact !fry. Jima location I'rI'ary ca:"jt•:ltton Quulinternatluuul-llotel Biscayne -lion Ievard • et 16tli Miami. Florida Street Slumber of great rooms, TADT.I VT-1, StRSIARY OF COMPLT rrtve FACtLtTtlS Year apened ' Pnbltebed-retee (I._ sI ngle noublc• 556, .1977 - S"$69-577. 0;$46-554 . 1Oterrontinent a l Fuur Awbessadors•i551 COL S. L'ayal. re Drive Miami.Florida kL.,vl HnrcLot t 1201 Mt/. 42nd Avenue.: Maud. Florida Sheraton Diver Goose 1900 N.W. 2tut Street' Miami. Florida David Willed, 700 Dilti..rc Way Coral Gables. Florida Coconut Grove Hotel 2649 S. DuyaIure Drive C.,co+,ut Crowe. Florida' lilt lny Matti - 2951.S..Dayubure.Drive Coconut Gro,e,Florida, Souesta; Beach 350'Ocean Ur the Ncy Biscayne. Flprlda,: Sheraton kuyal.Dtaceyne 555>Occeu Drive F.ey.Mlscuync;.;Flor1da FontatucLleau "Ntlron 4441-C6111ns"Aleone. Itl.ml. Leitch.' Florida ' • 438 260 8 104 1964 S $55-$77 0 $45-$60 -1972 1977 $55 $48 0 1964 S:$45-560. 0-$30-$35 1972 S $48-$55 O'S35-561 1975 S`$60-585 0 : Same' S'$S•S-$65 o $30-.$35 S.$S3-S60 0.$37-$43 S $60-5140 O ' same 293 1970 S 595-4110; 5'5954110 0 $45-$70 .. " ' 0 $45-$70 1960 S 580-S90 0:538-550 ':; s`$85-$95": O $40=$52 - 1.150: 1951 S 550=$100.'" S 550 5100. 0 $40-555 0 $50•$65 (1) Kates are•pruvtJcd fur t7+e season (5) and off season (0). (2) t .aluo.i banquet seating ler single group. (1) Au,e I I Iva icy on page V1-4 (continued) S $69 $85 0 $58-$70'• 5 $60-$82, O $55-$68 $65, Largest (2) fauctlon roos (Srntiug capacity), ij enities'O) • 1;700 r� _t. • CI A.C.E.c -. ►�-t\ �.r rr. r.00 . •'r •� •. A,C.O • - • t. • v� r..• 1: r t1� 01'. -� AC1 -" j i 400\ T,A.C•D•E.0 • + 500. 300 `. 3000' A ' • .A.O.0 C ;. 1..I 1'. A.C.D.S • A.O,c,D.E.i t.. 1 '13 rr- 's L'. oto.1 locatton ' • Seen••.is_y_k_s•••••ast It fun (tont Inueo)- burial Cot.nz.ry Club , 660 4400 0.0. t7c1t Avenue tiltnt. 1-1rlda Key !Sista:0m Votel. 237 701 Ocean Ilrlve - Key ttbtayoc.. Ylutld• TABLE (CONT1litttn) SlitealtY tiF comq:TrriVE KAOTATIES . • -Year. Published rareiAll_ .puest -rooms -•,12jamej • Double • Eden Koc 11.3tel 350 4525 Cullin!. Avenue Maw' Cinch. Florid* Doral Bead, Vutel 4631 t:.•Ilins Avenue Florida Konover hotel 5455 Collins Avenue Florida Americana Hotel 717 9701 Cu 1 i :ts Avenue tilami beach, Florida Ileat.vl Ile 550 6701 •:olltus Avenue litscl., Florida •Cartllon 68(11 Collins Avenue /Ham! BC3C11, Florida "'a Total 4gcondery COOMS 2 (.52 \ \Total pclitary and secondary 0 to. , 10 549 -T) (1) ;Idles are provided' for the season (S) and off-sea(0). (2) /tialm,la l.nopset seating for single group.. ;•:: A - Specialty restaurant ; iss ;. B - . ‘1•1, C . Tool - Tema, E - Health club r - Henclaront 0 C . Ocean or bay view • 1961 S $06-5114 0 $46-564 1953 S $85-$95 - 0 $40443 S $864114 O $46-$ 64 S $85-$95 O 548-551 Largest (2) function toot" (Scattily, capacity) Amenicie• ,(3) 800 300 1954 S 569-589 S 569-189 /.000 0 $43-$69 0 $43-$69 1961 S 582-596 S 582-596 . 850 • o $52-$67 0 $52-$67 • • 559-577 , S 564-582: 1.200 O $33-$4f0 $36-$44 - 5169-$00i, •S $69-$89. 2.000 9 329,;$44 ‘,0 '520-$44 A.8.C.F.6 _-.. , 1 $64-573 s $62-$7a- ....••\01.$36-045 600 A.s.c.D.E.F.c \;:--•:--,1911-..,- 0 o $34:/43-. x A.B.C.D.E.r•C ..t.: (. :-: :II .111 t '. 1:2) 800 . f"' -, r- •••''.......- ......, a $53-$62 .v ...t. •..;) t $sj 562... ". 11' 1958 %I:A \ : $31:$44 0 $31-$44 • • • • Year CreePanrY Average Daily Rate RL'VLNUE • P.eors . Fooet 50% of Pcar3 Beverage 5;'.1 of Food • Telephone Other TOTAL REVENUE DEPARTMENTAL ExPENSE Rooms to Dept Sales Food to DeI:t Sales Bev. to :cr.: Sales Tel to Dept Sales TOTAL DEPT EXPENSES • • • ••• • CITY OF MIAMI/VNIVERSITY OF MIAMI JaES L. KNIGHT INTERNATIONAL CENTER ' 608/630 Room-Prd-Forma Ten Year Projtction,with.t% Annual'inflEiOn (in ThoUsan* poll+) • • .78 • .•79 •80 . • '81 '82 '83 '84 '85, I 66 '87 ea 89 • 70 72 74 76 78 80 80 80 80 52.01 55.65 '59.55 .63.71 68.17 72.95 78.05 83.52 89.36 95.62 102.31 109.47 55 27.5 13.7 1.4 . -• 100.0 26.0 90.0 50.0 115.0 • 46.8 GROSS OPER:-.TING ICC 53.2 Admin.& General Advertising Utilities Repairs 6 Maintenance j, Reserve for Replacement:, Base Management Fee ADMINISTRAT :vr DEDUCTIONS GRSSS OPERATING PROFIT OTHER ExPEnSE Real Estate/ Base Rent Insurance SUBTOTAL (CPERATING INCOME) NET AVAILAZLE Fo a DEBT SERVICE_ - 744--- 5 498 6 302 - 6.903 7,5748,288 8,866-- 9,469" 10.129 6.5 4.0 3.0,, ,..'.. ,-.., „.•,....-,,,. .,... ,--.-1,:7'• '' ' ;'-i•-••' • - - -•••."••• ,,- ',...-':. . ,.. •-.' . , • • ..i- . • 5 • ,- 23.2:,-f '.••••..:••.:,:',,,•., .,----- r:,.-.:;..•- . • 4,175-ii'-'-'4•4:...90,'-- -14•!35.7:2' -••5•33.L''.--..'5•66;:' ' - 44132-',.. i6,683: :.'7 -.36', : 7.810 -:•8,431'-..;7.."::.-,-:- .3.0:.--.: -,-...• :, -.,..:, ., ,•,.:-:.7,,, ,.... , .. •.,..-•..(22.7):•.---..,(22.3)..,,, -,- • - . :,- - :,-.., . _, .. --... .,. .. ...'..• - - , .•‘ -_, ,:, _ ._,_ 6) 30.0 •- ' -;:- -:-',,. :...,...',-.'1'.:----,--:-; •-• ,'---,•39•'' (--6311.939)%;s;,:773,3101..,- . . ',-- -,13 569- '' • 9 403-,-"'-110062;''..' 10,766' • -'1•1••2°."-----1 • ' ' - .- • ,...,.-:•.:' ',.. ... -,'-...,-,....• :' .., ' . -... , .. , . ' -- ' - • •-•'; ",i 9,897 10,892 11,980 13,164 14,457 15,865 16,976 18,164 19,435 .•"' _ - 17.994 19,804 21.782 23.934 26,286 28.845 30,865 . 33,025 35,336 . . • (46:1) (45.1) 8,421 9,130 9,824 10,794 11,855 13,009 13,920 • • • - 2.• '90 80 117.13 20,795 37,809 14,894 -15,937 17.052 - • 4.2 • 4,534 5.288 6,077 6,678 7,334 8,048 8,611 9,2141 9,859 10.549 NET ICOM.E ST3PES (57.00/sf) • • 210 Debt Service Participation - Interest. 1St Rroms General Partner Management Fee Limited Partner Preference Pctrfl General Partner Subordinated Return 25.2 • • 210 225 225 10.819 NET OPERATING PROFIT City Performance Rent 4.2.A 20% cf Net Cper Profit CR 4.2.8 0-S% of Grass Room Sales City -Base Rent; -4-1 -..-7(7 TOTAL FENT TO CITY Incentive managtment Fee DTvele-,,er's Pr7fit 2,670 2,670 70 2,670 2.670 2,670 2,670 2,670 2,670 50 50 , - • '50 50 50 50 50. •50• •50 • 382.5 67567.5 - 2.670 272.5 291.5 311.9 " •4 50 382.5 67.5 2 952 3 3,535.5 4,187.1 4•880.0 5,441.4 6,026.5 6,667.5 7,337.1 • • 285.2 : 432.9 590.5 257.3 348.5 455.2. 150 150 175 435.2) 528.9 . 765.5 228.2 346.3 472.4 t • ft-tr.•erto • 1 088 3 1 205.3 1.333.5 1,467.4 707.1 837.4 976.0 • 618.7 722.8 793.2 848.8 908.2 175 200 200 225 225 882.1 1,037.4 1,176.0 1,313.3 1,430.3 565.7 6G9.9 780.1 870.6 964.2 971.7 1.039.7 250 250 1,593.5 1.717.4 16066.8 1.173.9 StntlmtIc•: ttrtnrnnry rrrcentete'(renndrd) tt..nt.rr nr nrc,pl'rd-rno-'• rer 7r.ir Av.r.ne rnn�. tete (Inflnfed) r ,•—• r.•vd rind,heverete Trlepi,nnw ttln..r nprrstr.i drpartmrY�•jSnr.L) Rn,t•1 tncn.e11. L y jw(rt.finnwt.— Cnuc•+elnnn.. .. r t Tntwl e e Mle2 ( r t�' r v n, ?/ \ Lt �-tIG f:rrertnentnl erren'e+ t p..,.-. 'r' \ `,, r 3.233.500 F1 ,n .r t% t•n�dl •rid hcver•►c f A 510.466,200. 512,001,200 f1,719,300 13,611.700 \437,700 501.900 '137.400 154,300 • 104,600 120,000 453,900 405700 �23:319.100 26,074,800 2.579.900 9,259;300 10.642.900 595300 `�^' 8G;600 95300 675600 -1982 707. 155.3441 567.38 75% 807. 166,r,40 177,536 , 572:11• $77.17 Tetnl d t tnl r.e - l. t, 12 822�/00 ` 14,699,300 nrpnrtmentel renllt t� '? -. 10,497.006, 12.225,2 ernr then nndl,trlln.ted nrernt1"4 esrrrn tS: AanInletruttive rind tenernl� t �>t ,147700 2'396.400 ► � I L 7t.en Ir0 ..1,010,000 � N► rt rip, rnr•rty rip«rwtlon, rrnintrnnrt:� •ner, twit.. 't G t?:..•v 1.642,609,. 1,004,100 t:wnv•ot Inn center nee charnel. h,t^'t�.r. 4' .75 700�'%�-27t500 Tntriundl•trlhrd.oerwttr.R expn;;r ,�iy� y �• rn•I, 11nv •vellnhle far fiend clnrgr'5�j=5.00 53300 rle•d rnrpr•: \'� 717020,9000007Th87500 107,000 Contrlh.tlnn to cnnventton centerpr:nnien 83.300 07.100 516.100 552,200 Rr•1 ••trite lave. ::.' 1 ��; R fur -r•pincemwnt 241.]00 258,300 Tetwl fffr.'4 et.�rr,•e 940,700 1.006.GOO 1C..•t. flnv •vtlnhle fnr lne«nLlrc mrinnR',,,,,, f,, 1,,.. nt I v wnnn Rrr.enf fe t:n•1, fI,,v rivelirihl•fne drla rent •.,.1 1"file•■ nn .1nc..me 4,832,200 393 700 $.6,633i500 tl wrn5rn IITATT RF.CF.UCT JADES L. 7.8ICIIT 1ttrrOMAT1MIAL ctutErt 603 R0h'fl PROJECTED ItTATr.►tEUT nr GtSII `Tt.012 AVAIL/MLR rut mar SER'.ICE,-REtrT AtmO.TARES 0n,ItiontC 1982-1991. (Conetderettnn 8tven'to the effect, of Inflation) 1784 ,. 1985, 1986 :057. 85t 100,632 188;632 582.56 $ 0 a . 3 3 513,699.600 `:515,572.600 ;$16.661,900'- 15,772,100 18,207,400 19,481,100 572,800 651,300- 696,000 173,600195,300 219.000 136.900 155.700 166,500 519.800 556.100 595.000 30,074,800 35.338.400 37:820.300 857. 188.632 594.49 517.823.900 20,839,700 745.400 234.300 178,200 636� 500 40 650..2. 05t 103.632 $101.09 519,068.900 22.295.300 797.500 250,700 190.600 G81.000 43 234.000 8SX 188,632 $108.19 19701971 0st 8st 109.432 1na,432 $115.78 $123.R6 520,407.200 521,839.060 23.860,100 25.534.100 853.507 913.400 248.300 207.100 204,000 210,10n • 728�800 777.900 46.321.900 49.571.800 523.364,m1U 27.317.20n 717.In0 307,700 231.5•10 834•,4100 53,071. 00 3,609.400 3,907,300 4,185,400 4.477.300 4.710.000 5.126,200 5.405.900 5.1149,nnt) 12,205.800 13,994.100 16,973,100 16.017.300 17,136,000 18.338.700 17.625.401 20.995.1100 763,400 859,900 920,100 984,300 1.053.000 1.126.90U 1,206,100 1.790.200 109.500 ` 123 000 137 900 147,500 117.900 9%L000 tao.,eo° _193.500 16,688.100 18:864.300 •20,216:500 21,626.400 23.135 900 24 760.600 26.495,100 28,348,5I8 .. 14.106.700 16.454-100 , 17:G03.800 . 18,831400 20.147.100 ,21.561.100 23.071,100 24`681,200 2.669.200 2,983,000 3.191;800 1,165.000 1..315.700 1.407,800 2,157.000 2,463,900 2.673,200 2.059,600 29,500 31.500 33.700 36,100 6.021 ` 00 6.794.100 7,306.500 7._816:100 8.165.500 9,660.000 10,297.300 11.015.500 3.414,400 1,506,000 3,652.900 1,611.200 5.057.400 38.600 8362. Ina 11.785.000 114,500 122,500 131.100 140,300 150.100 95.400 102,100 109,200 .116,800. 125.000 590.900 632.200 676.600 724.100 774,700 276,/t00 295.700 316.400 330,400 362.100 1.077.000 _ 1.152,500 1,233.300 > 1.___„.0 1.411.900 '-5,890.900 7.0130.300 8,507.500 9,066,000 522,400 667..400 842.500 894,500 $;,5,350,500 $ U,420.900 5.695,900 10.575.100 956'.900 1'023.800- S 7,665.000 $ 8,169•,500 S 0,739,000, $,9,349,300• 3.909.200 1.724,300 3.274.100 41.300 8,148,900 12 612`110 160.600 133.800 828.900 Z07.100 1 510.800 11.101.400 1 095 600 4,183.500 4..7$.400 1.845,300 1.9:4.1n0 3,503,8n0 3,748,5n9 44,200 47.300 _gam S7 6, a00 10.245, 99ti 13 496.900 14.439i400 171,800 143.100 806.700 414.700 183.p0n 151.101) 948.400 443.600 1,7 2WAIR 11.880,600 17.110.3110 1.172.500 1.254,400 510,005.000 $10,705.100 $115=• : The comments en.t a•e..teptlons contetned to this reporters en Integral part of thl, projected statement. under whatis commonly known as a "net" lease, since real estate taxes and fire insurance are also paid by the tenant in each instance. Summary The six tables that follow. present the median amounts per available room and the, median ratios to room sales for the various groups during 1977. Other schedules show the upper and lower quartiles and the median for the sample broken down by Exhibit 26 Cost of Fixed Assets`, Wholly. owned Land. $ 3387 - Building and Improvements 16,225 Land Only Leased' $ 18,797 Land and Building. leased Furniture, Fixtures and Improvements Total Rent 4251 $23,863 3056 S21,853 56328 S6328 Per Available Room ,Ratio to Total Sates • Based on arithmetic mean of those reporting detail size. The exhibits and schedules minimum wage, combined With have all been revised to conform gradual elimination of the tip as nearly as possible with the 7th credit, and the possibility of a revised edition of the Uniform slowdown in the economy. At this System of 'Accounts for Hotels. time it is difficult to forecast the Following that set of statements is possible impact of what many an exhibit containing the medians of the size groups for 1974-77 in accordance with the format of the previous edition of the Uniform System. The year 1977 was a good one for the lodging industry. Occu- pancy rose to more profitable levels as both business and pleasure travel increased. Modest price increases failed to keep pace with inflation, however, and the cost of doing business was higher in some cases. So far in 1978, the increase in occupancy that began in early '. 1977 has continued. This year promises to be better than 1977 in terms of sales, but operating expenses continue to accelerate as inflation continues to increase. There are tw0; major threats to, operations for 1979' apparent at this time: another increase in the. S 501 S2129 3.4% 14.9% Fortunately, there has been no in- dication of a boom in the construction of guest rooms this year, although many companies have announced plans for future expansion. Barring a severe economists predict will be at least recession, which seems unlikely, a mild recession. If business travel is curtailed, room occupancy in 1979 may show no improvement or even a slight decline from 1978. '. 1979 is likely to show a pattern in occupancy quite similar to 1978. Inflation remains the biggest problem facing lodging operators. ■ 39 • Exhibit 15 Florida Lodging Industry-1977 Statement of Income and Expense Rooms Sales Departmental Expenses Payroll & Related Expenses Other Total Departmental income Food & Beverage Sales Food Beverage Total Cost of Sales Food Beverage Total • Gross Profit Public Room Sales • Other Income Gross Profit & Other Income Departmental Expenses (food and beverage) Payroll & Related Expenses Other Total Departmental Income 'Telephone Department Loss Net Income From Minor Operated Departments Rentals & Other Income Gross Income'" Undistributed Operating Expenses Adrninistrative & General .Payroll & Related Expenses Other Total • Marketing . Energy Costs Property Operations & Maintenance, Total Undistributed Expenses'2' Income Before Fixed Charges • -Fixed Charges Rent • Property Taxes Property Insurance • Inteiota - - • Oupreciution & Amortization Total Fixed Charges •51.725:,$2,549 53.327- • -- • • S679 -.$, 152 Amounts Per Available floorrOo' Lower Upper Quartite Median OUartile $ 4,619 $ 6,190 $ 8,512 754 1,025 1,351 297 447 783 1,001 1,612 1,885 3,237 4,775 5,780 1,782 2,531 4,209 568 1,021 2,155 2,240 2,983 5,964 645 956 1,480 272 434 135 742 1,008 1,844 1,394 2,067 4,054 1,394 2,067 4,073 782 1,151 2,011, 240 441 739 9 $ (172) 1'5(6,62 5%, $1.83_.(333726) 346 ,S 739 68 8 41 59 164 280 3,538 5,601 7.397 271 359 682 641 1,058 ,1,498 483 567 765 2,687, • 3;661 • , • 1,753 , 2,647, 3,474 235 348 1,701 , 198 267 483 594 876 .,1,452 471 1,006 1,229 Net Income Before Taxes, Statistics' • •. Occupancy • • '54.31'0 • -'70.01rip • (I) All amounts are tnedians'and do not necessarily add to the totals shown. .•• (2) For clarity in presentation, these totals aro computed figures. • . • 18 225 220 215 210 205 ' 200 195 190 185 180 175 170 g 165 - •160 z 155 - s 150 — 145 140 — 135 130 — 125 120 — 115 - 110 105 100 95 1959 60-.` 61 TRENDS'114 THE FLORIDA LODGING INDUSTRY 65... 66 67 a 69 YEARS,, 0 Room3'` ' Food i:' 8everage 73 .7 76 75 77 Rooms. Food '-Beverage._ Rooms Food Beverage 1960 ' 102 102 102'; 1-969 1 50 135,. 137 .1961 . . ;100 103 104-1': �1970 149 . 133 135 �1962 99 -. :98 95': 1971, ,159 141 144 Q 1�972. :177 •.155 154 1963 103 99 6.. 1964 108 105 - 106- 1973 180 163 165 :1965 . • 119 111 114 ; . 1974 177 162- 161 1966 . - ."124 115',' ' 117,:, . 1975 _ .1.85 165 163 - _ -1967 133 123 125 1976 1.98 172 167 1966 145 132 134 1977 221 187 080. Trend:of Sal• es —Total -State-- - 19 tit C AGRE EMEN 'rI•IIS AGREEMENT enteredinto this / day o by and between the UNIVERSITY OF MIAMI, a non-profit corpora- lJ :.i':!Q ion organized and existing under thelaws of the State. of Florida' (here- inafter referred to as the 'University') and the CITY OF MIAMI, a. . ,•:, r' > . `i' !t . 1 i. ;4 • Aft " ,ft' I :MI" + .•l7..'J:: municipal corporation under the laws of the State of Florida (hereinafter .7+ `I�. i}.•)- .:•-t c-�...�. -!. .. :i":t `: l.i. :r, ,•:r. �,.i 1. •t• referred to as the ''City"),` •11'I-HEREAS, the City is planning to construct a downtown Con vention Center substantially in accordance with plans dated September 28, 1976, revised December 13, 1976, for City of IMiiarnif Universityof Miami, — �,• — .t a! :} i. .1. :1. ', ' rt"i` r• �i...i ) •. .tf .. ''1.'�t„ = Jai-nes L. Knight International Center, consisting of 4 pagesprepared by Fcrendino`Grafton Spillis Candela, and -Outline Preltininary Specifications':__• therefor prepared by the same firm dated'Octobcr 1976, a copy of each • of which is attached hereto as Exhibit A'•and Exhibit B, 'respectively, and •1'•t. 4.1 `. ') JJ •-i .' t:�. t 1 J: i. 7tl ).07' ' :l t .,. . .'al ..I r :` ! ' • made a part hereof by reference, on a site bounded on the south by the - . n'] ll,..'7.) •.J ` ..4: .( is .i• .r, Mi:►mi° River,- on the east by S. E. 2ndAvenue, on the west by S. E. lst•-•• (;•; •(;1.:. ►.'�. �i 'l`..� •::• t: :J:J(.. '`:J? `? . I.]:: ... !r:f a ^i Avenue, and do the north`by an irregular • boundary bounded in part by •.ai :r-'I t: i:.:' tJ1: �.t. �l!':'1 .j �•—• t the 1-95 fi cdcr, ramp and in part by S. E. 2nd:Street, which tract.of land; corr:prises appro::innatcly'five and one-half acres; and • ************************************;********** The original from which this microfilm * ` * was taken was awfully poor. * This is the best photograph we * *r could obtain. x ***********************************************it C • •• ♦, ,'.1 1, WI + .' :'1', Wy1.1ERLAS, it is the intention of the City through the con N,• , ;r ,•1..•, ., :'.C.',', 1:' ! upgrade and rc' Gonvcntion Center to upg structioti of such` downtown •, : , ,., .. - , -•', '�' 1 I)i'1,, j. • :'1 ..• �'• At! lih ;.l ?1. �,, 1'?•,I.t' ,.?, • :' ,. •• • i!•%;: ie:!:�j .i�'i . _:. :1 • and iri:general and to vitalize 'the ;downtown area in its vicinity ►• ', . •.:-,.: .', :•• , ... area; and stimulate tourist business in the downtown Miarm ,,, 1.y.. '� ! ! •rl::l:.' :::.. ; �" ' • '' `'"' 2 �� r� would enhance the \'1 i lE RUAS, in the opinion of the City it SUCCCJJ .of the venture for the University to conduct a Conference Center as a part of the operation of the Convention Center and it would be helpful to the operation of the Conference Center by the University ,•,, :: to.havc it associated .with a Convention Center o P ..;;, ;• -. the Conven • t that some of the facilities in by the City, especially in , 1 .:. '. • t '. cr and in the Conference. Center can serve multiple use pur-. tion' Cc nt ! t pose sand thereby enhance the economic feasibility of the total pro ^ ' 1 �i jcct; and • ` :t. _ : `► 1rrLAs; as part of the total'pr ojec t the City is ao_attempt - v.::, 1• cs t: ,. -'• '4, • of a 1` 000' in ood faith to arrange for the construction on the site .. _ ;•'• .. .. ... .. ortion thereof as shown ated in the northern p , car I-LragC to ,; i:lOC ' 4- •..` , 11 ,•. .1;•7. ts(.:.i.. .1•1 r;_� 1 ',,•'. . •:' f ,•iJ' .• . . . a luxury s herein described, ^and for a developer to. construct the plan '.,.• :i. ', 1:,i'1 •,:; ..) :ci •; .. .,'• t .1i retail area,and , the have not less; than 250 rooms and a! .. i hotel on site. to., I + :•,, ' � " '`to the City the :sure \VI'IL• RL/1S', the University is willing to>paY t 0 ()00 1.0geth1cr ,with earnings ..vhich may accumulate in the escrow of, :?., �0 for account` provided fo r this Agreement), as advance payment of ***********************************************# * The original from which this microfilm * was taken was awfully poor. This is the best photograph we I could obtain. *********************************************** L the Conference Center area but only, upon the basis /Agreement and upon execution aid delivery of a lease in the form which is attached hereto and' made a setforth hi this substantially part.hereo NOW, T14EREFORE, in consideration of the premises and of c romises" herein contained upon the the mutual covenants: and of ih p part o each of the parties hereto, it is agreed as. follows 1. The City agrees to construct a downtown Convention" Center in :accordance with the plans and specifications hereinabove 'described. and to complete the construction and all other activities in: accordance with the following schedule:'. Date Completion of Design Development Novernber 18, 197 Feasibility Study ::. January Selection of Pros;pectivc Private Developer l.::ccution of-Contrac eveloper with Private March 1;197 Deceinber 30 ` 1977 Cornplefion of Construction Documents June 1, 1977 .e.cittest.for' )aids � v.'ard'cof Constriction Contract Obtaining Building Permit and Start of Construction 10 days after execution of private developer,• ... contract G0 days after: cx ecution of private developer contract 75 days after.: execution of private developer contract ;: _.. Date C Completion of Construction of Con- vention and Conference Center Date of Corinplction of .ITotel'and; . Pa rking'_Requirements' Signing of Lease between City and • University and Beneficial Occupancy of Conference Center by University Each of the 800 days afterexecution of private developer contract 180 days aftercompletion of Convention and Conference Center 30 days after ;completion of hotel and parking requirements above scheduled datesmay, be extended by the City by the fire unavoid- of delay "which results from labor disputes, , causes be and the control of the City.or the number of days able casualties,or other y contractor or subcontractors doingthe v✓ork,:but the University- is to be informed about any such delays and is to be furnished at the kept fully timeo each delay with a.revised.time.`_schedule. ny than e or deviation frorn the projected time schedule otherthanthose unavoidable delays described; in the preceding sentence must be .approved by the University, • : which approval will not be unreasonabiy'.vitlibeld. Any material deviation from the schc;dulc which does not result from one of t e,causes listed al,ovc and is not approvcsd by the University .shall entitle the University to cancel, this Agreement,' placed in ave returned to it all m"onics it may have c::crow.indcr 'Parag"raph 3 }�ereof:an thereon and be under no further obligation accumulated earnings.. hereunder. ,s:part. of the total project the City i o cause. o be constructed, a hotel and retail area, both of. which arc to pletcd and the hoteli to be in ,operation within 'sixty " (60) days= ccom• r.oIn C the "date upon which the University occupies the Conference Center. The hotel and retail area are to be constructed in accordance with the plans and Specifications described ]aid Doctiinents are to state the nee (by area hotel as in this Agreement. ` The "Developer, d that at least'So• % of the retail stores nnust''be rented for immediate occupancy at the time that the scheduled to be in operation. The University is not to rnnakc any payments to the City until the date that the parking: regtiirements: set forth in Paragraph 15(f) hereof and the hotel are completed and are in operation; veloner Bid Documents rnentioned in all :conditions in the. D Paragraph•2 hereof have been met, • and the lease is signed. The University wiliy'however, make deposits the total amount of '$2 agent located within t by the "Universi 500,`000, to`apply as advance rents with an in.. escrow. he City of Miarni, . selectedby the Cityand which fund is to be.invested in short term Unite States Government securities.: approved _ _ Within thirty;(30) clays from the date of execution and delivery of this Agreement and upon evidence bein furnished by the City to the University that the City has made payments, to 11id architects (Fercndino-Grafton Spillis Candela) required to be paid upon completion of Schematic Design and Dcsign,Developinent.phases of the Convention` Center Project the University shall deposit _with; said escrow a,;cnt the c>ttm of '';5n 800. Upon.. curiipletion of construction:doctnnent the nnalcing of :a progress ( City the Universi paynicnt`;thcrefor* ; o the said architects by the "shall deposit with said escrow agent an additiona1: and $49, 700, Upon completion of bidding and the making of a progress payment therefor said c o'the 'architects,by the City the University shall deposit "with crow agent"a»"adclitional $ p p 7100 and upon Completion of construction of the project and the inalcing of the final payment therefor to the architects by the City the University shall deposit with the said escrow agent an additional $28,400. Each, such deposit shall be made 1.vithir thirty (30) days after the Univcr ity is notified by the City, that it has rnade payment`'to the architects. In addition o the foregoing deposits the University shall deposit with said escrow agent the total amounts which bear the sane proportion to sum, of $2, 358, 000 as construction progresses in• • 358,000 ;a's`:the progress . • $2 payments made by the City to the contractor who builds the Convention Center (including the" Conference Center) bear to the total contract price for the construction of the Convention Center. Each such` deposit" shall be. made within thirty (30). days after the University' is;inotified it has 'made a payment to the contractor. J by the City. that .:... no event shall payments by.. the University to .the said escrow ;agent exceed the total sun o • and in no event shall 2,500 000 the prepaid rent on the lease exceed that amount plus.- ... interest "earned upon monies deposited in escrow aspr'ovided in ,this Agree - men -The total amount held in the escrow'accoun thereon, including:interest • shall`' be paid to the City;, as- advance payment-o of tile.,•xcclution and rcnta]. at the tine d.r.livery_ of the lease" bct.N.veen tile City andthe rcicrr.cd to herein. In the event of University a default under any term or condition of t1tis "Agreement by the' City all funds held by the escrow" agent' arc. to be returned to the "University and the University shall not be obligated to mattean y: further deposits with the escrow agent. The moneyto be paid by the University to the City shall consti- tutc prepaid "rental for the area to be leased by the City to: the University for use as a Conference Center for the first. thirty (30) years 'of the term of such lca.se. con The University" shall not bear any of the "cost or tructing the Conference'. Center or the Convention Center, expense of and without limiting the generality of the foregoing the University shall not be "responsible for any cost or cx:pense.of construction, architec construction "contingencies, and engineers, construction manager or whatsoever connected therewith.'' 5. Upon (i) completion of the project, anew satisfactory to the University of parking as described m Paragraph 15(f) hereof and of performance of all. Developer Bid' Documents referred to in Para- • graph.?, hereof, (in) having rnet ajl other requirements'of"this Agreement, the ;City and the University are to enter into a thir any other cost ees of• - or expense thirty ('3 and i) the City- furnishing assur- 30) year renewal options in substantially, the `form E> hihit C upon" payment by the Univer year lease with two attached hereto as ity"to the City -of prepaid "rental"lor the first thirty (30) years In the amount specified. -in this Agreernen oncurrently ;vitli the ,:mt:cutic)n and delivery. of said"lease the montcs."held ,.in escrow as pro- vicicd in Paragrapit 3 hereof;:. oncthcr withearnings thereon, s • the City. No further basic rent is "to. be paid"" by the University gall: be paid to for thews c of the•Conference Center space for the term of the two thirsty (30) year renewal periods. • In consideration for each renewable option period, the University -?- L basis and advise the City o Univcrsi shall be as,_ are agrees that it will refurbish, update, and modernize its equipment and furnishings within one year after the, coynmencement of such renewable term or show evidence that it has done same before the commencement of such renewal tcrzn.. bast 6. The amount o space to be furnished to the University on a -rental • for use as a Conference Center shall be not less than 30 of net worl:ing`,space. tacked'hereto. 752 square feet The area is shown in green on Exhibit A which is at- 7. The quality level of the interior finishes of University shown in working drawings ;and specifications,; all of which':. space . o be approved by the .University, and are to be consistent: with the — plans and specifications above described.' area, it c As o the :`Conference Center University is to have the right to i eview and approve the design, qu;:ility of design, working drawings and specifications prior; to advertising - for bids and the right to approve or. rejcet:the finished materials or worl:man- • salisficd. that the resulting; work product ship and the right to be reasonabl• conform to the working drawings and. specifications. To that versity •• ,,; monitor the workmanship and .quality of material f any ,deficiencies promptly. In addition h;111 h<<ve the right: : to review .and will: be consulted on t cl., t ii ; nci ctnnality of construction of the Convention Center as a tile .Cit. :;11:ill have similar right.: as;, to the Conference Center area. significant structural changes or alterations affecting the quality ;o end, the ;Uni- on a periodic the . eovcrail whole;and Any design and•consi:;tcncy :of standards of. quality during construction either, of the interior or exterior of the premises which would affect the usefulness of the Conference Center are to be subjectto approval by the University'; Any reduction in or changes in the structure Which reduce' the use value to thcUniversity of space o be occupied` by the City or the private developer arc to be subject to approval by the University. '. • The University only in quality of design s recognized to have a vital' interest not • color, location of.elements, `finishes, and furniture and furnishings in the Convention Center, but also in the motif, atmosphere, and tone thereof and for these reasons it shall have the right .to be consulted on these matters before and durin construction. 9. The University shall have the right to utilize the facilities being.cotnstructcd by the City by rental of these facilities as a prim tenant on the site. As such, the University will have Scheduled priority and ready access to, the City of Mip. ni space at rates to be established in accordance with the provisions of this Agreement an the lease attached -hereto. acccns on The. City's Convention' Center will'have a scheduled priority basis al •reasonable rates to be estab i::hcd by thc .University to the use of meeting spaces, ..the use o the teaching tec linology staff and thc associated" sophisticated cquir rnent:provided by Ole University: 10. !'}ie gip. cc to bc covered, by tile lease from the City t•o the: U1iversity i n to include all interiorpatr•titions, wall and floor cover- 1nrs, light fixtures, ;mechanical/electrical and electronic distribution, systems required to accommodate projected hardware and software to be installed by the University,. acid all fixed stating, furnishings, and equipmentto be installed as an integral part of the building: All of the foregoing are to be subject to the quality standards set forth in this Agrce- )Went., 11. The University shall have sole responsibility for nnanagernent, scheduling and utilization of space covered by the lease to be entered into between the parties' hereto. 12. The Universityo shall provide all movable furnishings ment;needed in the area covered by the lease between the City and the:.:• University. 13. The City: i.s and public safety and and equip-:: o be responsible for maintaining normal security•; for providing custodial and maintenance services all portions of the Center. For any special security or public safety i. c. , for visiting digni taries, etc., the co • auircd, t of such service shall :: • be b'cirne by the party" programming the event. The cost of custodial and lraintcnanc c" -cervices,for the area covered by, the University leases wilh.be determined annurtlly with if they are able to do so. paid" the University and the City. agreeing The amount to b on such cost paid by the University: will monthly but is tobe subject- to review .an adjustment annual].; )artier cannot al;rec oncost or if.tile. 'quality of" custodial and be I711.inte- n:.rice :,ervicts reaches a level unacceptablc to the University, the Univer :ity will have the right to provide ;its own custodial an rrutintenance services but such services will be required to be of a ;Iccei)table to the City. 14. 'rile UniversitY shall not be 1..esports).1.)le for any u y, ' t'itt sect ity, )11[1illterizirIce or custodial cost of the con'llnorl areas e›:cept for the 'University's reception area even though other areas may be used by the iini‘lersItY• . • • 15 In thc lease to be entered into between the U n i v e r s ity and City, the University shall have the right toill the Establish and maintain 2.'ts unique terior design • • (a) ' the Conference Center area, , Image v clUst the . (b) Modify and a j'• r spaces, .. liti'in use of space through illai7r. (c) Furnish and equip its facLiittes be aPPr°".. ;Lx.id rntnor rernodeling of all interior . as may 13riato to meet edlicatiollai programming needs; , .. (d) 1-lave first priority in rental of City controlled . sila 1 cri such spaCerSamharnveednoat b ee n sc.chepcaluyliendg for CitY. ces Nv 1 a‘Iclit of tile cost conli)onents of thela.ting to cus :e"):i it::r'n'i'l Cc eUrInt ei University Pr Is. °i tay shall have,ct it:11 Leittlyle.tl:rgl 'ac.litt padt o.t.anba:11°nttthillaeet:101-s; C°'1‘te ,. otia.i3le rental colT1Para ble to . Cit, (11'11 ''uld tTliti''Lel'arIce servic(!s, including labor. customary • • - • .r . - -11- ffringe benefits, materials supplies use0 cgtttpmenl utilities, and other cost elements; (f) As part of the lease the City" shall assure to the University adequate parking in the1,000- car palling garage to be constructed a Center site, a location on the Convention of .whichin noevent shall there be less, than 300 spaces to be available upon scheduled; request for programmed events wherein the conference attendees will arrive by automobile at the lowest rate charged to=••_ any other user and up to 25 spaces to be: available:. on; continuous basis for 'convenient administrative parking, at the lowest rate charged to others; • (g) The. City is to pay to. the University for Unt versity`'owned space a reasonable ,rental comparable tof' that paid by others; (h) The City will pa the University for the use special facilities or equipment a rcasonable'charg therefor co nparable`:to that paid by others; ) If ; such use does not conflict with use by the;Uit- versify; the University will agree to snake available .to entities which are using City facilities .the.:spccia1 equip mcnt and faciliti es maintained by the .University ata rea- sonalble charge comparable .to'that paid:`by others; -12- (j) if such use does not conflict with use b the City, the City will agree to make available to entities which are using University facilities the special equipment and: facilities 3nttintaiued by the City ata reasonable charge comparable to. that paid by others; (h) The City is to agree that at no time during the life o the lease or any renewal thereof will it rent space on a. regular. and continuing basis to any other private or public educational institution of, higher education for conducting programs which are similar to those which are offered by the University i at the Conference. Center;. (1) Neither the City nor the University is`to solici.t:con fercnces or conventions which coffer 'educational or other programs- similar to any program, or convention theretofore' conducted by the other party; The University shall have therightto assign or trans- cr the lease or::,to sublease the Conference Center or any part thereof without the .prior written consent of the City, provided thatthe assignee or transfereeor sublessee shall be obligated • to tit; . the )remises so-v-signed,'"transfcrrcd or :,ublcascd`for t� ..; me purposes for tivhich they can he used by :the Um.vc:isity under the tcrill s of the lease, and Provided further that the City havca right of first refusal in the event of a sublease o 13 the entire Conference Center or an assignment of the lease within thirty (30) bays after receipt of written notice tcntiort by the U�iiversity ,to Center or as ign the lease. (n) If the City defaults under the terrns'of the Pease the, University is elititled to be inadc whole, that meaning that the. of an in - sublease the entire Conference • University will be paid an amount sufficient to replace the facilities covered by the lease and the amount of incoine lost by reason of the default. agree that the University shall have the right to_• 1.6 . The parties participate in all discussions between the City and ,potential developers in. order to identify supporting annenities, to facilities; on and adjacent to the site:. be developed in hotels and other 17. The only change orders for which the University shall be • sponsiblc Univcr: arc those which represent,a change 1ty• which the list which Thi rna rl: re- in the>requirei-rients_ of the All others are tobe paid°for "by the City. The level and quantity of instructional.technology equipment ce Center: is set forth. on a University will place in the. Cone ,eren is .attached hereto, made a part hereof and 'marled Exhibit D. .:object• to change pending new and available equipmeriton the .-• c.t, Any construction contract catras .'req flied as a result of tw tii�: tJiiiversity shall:be the respozisibility . of the Unlversi equipment • 19.. The City agrees to establish not later than April 30, 1977, a separate dcpartrnent by City Ordinance be the director of the Convention Center who will report direct the .bcaid of :w rich" department is to o the City the other_ party. If mutual approval is not reached,' additional -- nominees ,will be added ,to the respective lists until "mutual ment 's.reached by both parties. The'final list, mutually. proved by the City and the. University,:shall be formally submitted.. =- Advisory , Commit•tee_ :: . -14 Manager. In addition, an advisory committee is to be established by the same ordinance, to be known as the "City of Miami/University of Miami James L. Knight International Center Advisory Committee". agreeable individual Said Committee shall consist of nine (9) members tnuttially to the City and the University, each of whom shall be an of outstanding reputation ."for integrity, responsibility and list of five busine (5) Tru s ability. The City Commissionshall submit a• nominees to the City Manager and the University Board of tees shall submit alist of four (4) nominees to the City The` City Manager shall review each of the lists with" Manager. i by the City to the City "Commission for appointment Cornrnission.. • . In the to inure that in addition to all 'nine (9)':: selected Committee inembers representing the best interest of .both the City and University in the James L. Knight Center they shall also truly represent the cultural, ethnic, and racialb d .agree- - is to: the approval process,` the. City Manager is of tile: community. This :,Coimittee Commis ion not later than May 31, appointed by the City Manager, front Advisory Committee than June 30, 1977.: Separate The 19.7 7. �• Advisory ackQrounds. be appointed `,by the The. Director z.s to persons "recommended by Director is to 'be appointe 20.: Utility costsare to be`determined;by meters or acceptable measuring devices for each user's arca and will be charged at the same rate City be the - not;; later is charged by the supplier of the particular utility service to the total Convention Center. 21. The name of the Center is to be the: of Miami "City of Miami/University ' JAMES L. KNIGHT INTERNATIONAL CENTER'.. 22. - 'rhe University, the City and the developer each will' be're- sponsiblc for providing public liability coverage for the area occupied by d S10 million forany one acci- • it, with Hants of .$y5 million for one person an dent in which the other two parties: are narned as 3 lellt in or 2 • additional insureds. The City will obtain property insurance covering the replace=••-.- f the Conference Center with loss thereonpayable to the University b . the University', and . the cost`'o der oprotect .the leasehold interest heldy situ shall reimburse the City for the :cost of such coverage. Univer University shallprovide its own insurance protection owned by it. 4. Thc hotel which is to be art.of the consist .of: not le The : on personal property Convention Center shall than 250 rooms, plus the reasonable complement of dining rooms and rnccting rooms for their own purposes. plction The construction, and occupancy of that hotel is an absolute condition. renting the .Conference •Center from the City .and unless no obligation torentanys of the that is corn- - University accornplished ace wliatsoever.;and the ,University is under` p :mall 1,e entitled to receive promptly all of the lnonic S p1:-tceci Ill escrow under Paragraph 3 hereof and any;`carnings .thereon. `' C k- -15a- " 'rhe hotel is to be constructed imrnediatcly adjacent to or over the; University's Conference Center and is to be of such design and interior finish and furnishingsas to be considered on the luury/ first class level and to provide transient roorns all the amenities relating to high caliber in accordance with professional hotel standards. 7 6. The Developer Bid Documents are to state the need for and that any 'agreement between a private de: or luttcl operator relating to such hotel and the City shall be the follow ing provisions vcloper • • nc',otiated in -light of that need and the City shall` attempt to include -pro- -- visions as .follo\vs: ) • rtciznburserne- nt to :the University' for conference staff ailininistrative services for arranging "and coordinat_ inr conferences and bringing participants into the hotel rooms at not less than 15% of tlie•'University visitor; room� income or the equivalent of prevailing industry standard`: reimburse rents::for use of activities and services of the hotel normally paid to other agencies. when providing or• arranging for similarireservations.• (o) The ;University is to. have schedule priority as o all facilities of the hotel for its conferences and visitors, including priority on the making of. reserva tions. The University desires ,that the developer an the hotel operator provide facilities, for training and in- tcrnsliip: purposes. priority ;in utilizing The University is to have schedule .` the hotel; for training and intern- shippurposes'_ and special programs and seminars in,• - hotel nanagci-nent ; hospitality and travel. If the City is unable to negotiate an agreement with the developer; containing provisions at least as set forth in subparagraphs (a avorable to the University; as. those and (b) • f this paragraph the:: University shall have the rai;ht to either•accept the ;provisions which are negotiated`' If the provisions are rejected the University shall have or reject Ilium the right to the .ir»nediate return of all money held by,:the .escrow and :.ha11 he under no further obligation under thisAgreernent. it. shall Z"l. l3eforc execution; of the lea agent c attached hereto as Exhibit C be completed by mal:int; appiopriate insertions in blanl..spaces - 17 -. • and by conforming the provisions to any agreements reached by the between the date of this Agreement and the parties hereto in writing date of the execution and delivery of the said lease. This 'Agreement contains all of the understandings 28 parties hereto and merges all prior oral discussions on this between.:` the parties. IN be executed and 411 cn. ATTEST• ATTEST: of the subject WITNESS WHEREOF, the parties have caused this Agreement to respective duly authorized '. he day and year first above written delivered by` their . _ • tt, .//; C r t 1 C 1 c. }. • • r?. .ti �'D •`i.'O- CONJTFVT ►i i r - 1. t o : UNIVEPSITYIO F' AM:Vif officers Executive Vice Presiderft for Administration and Finance THE CITY.; OF p-IA 1I (a municipal corpo r f n 'StatL City. Manager APPROVVD AS TO FORM CiL-y AttoLyney ORRECTNESS LEASE AND AGREEMENT. FOR DEVELOPMENT THE CITY OF MIAMI, a Municipal Corporation Under the Laws of the State of Florida MIMII:CENTER ASSOCIATES, LTD. A Florida Limited. Partnership !\s inrncndeu throe h 1979 NOW, TIIEREFORE, in consideration of the covenants. herein contained and for .good and valuable consideration, the receipt and sufficiency of which hereby acknowledged, hereby rents and;agreetnents herein contained, for the term hereinafter specified, the Demised Premises and the parties mutually covenant and agree as follows: Section 1. DEFINITIONS. The terms defined in this Section (except as herein are the City hereby leases to the Developer, and the Developer from City, at the rent and upon the covenants conditions, limitations otherwise expressly provided or required by the context) shall for all purposes have the following meanings: 1.1 "Additional Hotel "Spaces" shall mean.' Shell ' Spaces in the Convention Center as .delineated in Exhibit "13" and designated Space Nos. 1 through' 25,,inclusive. " 12 "Air Space" shall mean all that air space delineated in Exhibit "A". designated "Swimming Pool", and all that air space bounded as follows (1) lower boundary - the horizontal plane at elevation 81' 6" as shown in Exhibit "13" attached hereto and; made a part hereof• , (2) upper boundary- the horizontal plane at the elevation permitted byapplicable law; (3) maximum perimetrical boundaries - the perimetrical boundaries as shall til conform ` to the spice delineated in Exhibit "A" and designated "Ilotel Tower" projected verticallyto intersect the upper and lower boundaries. 1.3 "Conference Center" . shall meanthat portion of: the Convention Center,; which is to be leased by the City to the University.. 1.4 "Convention Center" shall.mean the entire four-story structure, to be con.,tructcd by the City on the land described in Exhibit "A" appended hereto: 1 and by reference made a part hereof which includes the Convention Center space, Conference Center space and Additional Hotel Spaces. 1.5 "Demised Premises" shall mean the Air Space, the Additional lintel Spaces and the Easements. 1.6 "Easements" shall mean (a) use in common With the City and all others of all public +the sidewalks, streets, avenues, curbs and. roadways fronting on and abutting P'remi.es; (b) 'the righ of ingress, ; egress and passageway in, over, through and, across the Excepted Premises which shall be necessary or' desirable for entrance. exit and passageway to and from the Hotel for the use in common of .the • Cityrind the Developer, their respective successors, assign invitees and all other persons having business with any of them; to maintain (c) patrons, tenants, the right of support and right of user in respect of, and within the Excepted Premises, all essential structural support elements, all sump systems for flood water control, all fire stand pipes, public fire exits and fire control systems; all gas, electric, telephone and water utility lines, pipes, and conduits; all elevator apparatus and elevator banl:s; all gas, electric, and eater meters and meter J toils and machinery rooms; all heating, ventilating and air-conditionin pertaining to and needed to:support and'opertite the Hotel as a`first-cltr :s hotel; and (d) the mutual right of access for theuse in common` of the City arid the i)cvclopei to . inspect, . maintain, repair, renew and replace such (..Ulur!'n ;porn, foundations, drains, utility lines, elevator shafts and pits and other improvements and • facilities of either in the i)ctni-ed'or Excepted Preitiises. r1 1.7 "Excepted Premises" shall mean the land described in Exhibit "A" and ;ill improvements thereon) as shown in Exhibit "B" not expressly included in the Demised Premises. 1.8 "First Opens for Business" shall mean that date on which the Developer first receives income for use of the Hotel by the public. "Hotel" shall mean the Hotel Tower and Swimming Pool to be constrtcted entirelyby the Developer, and the Additional Hotel Spaces which are to, be completed by the Developer. The term "Hotel" includes furniture, fixtures 1 Developer in the premises constructed or 1.9 to and equipment completed by the Developer. 1.10 "Hotel Tower" be .provided by - the shall mean the structure to be constructed by the Developer in the air spaces described in Section 1.2 upon the platform to be provided by the City at elevation 81'6". 1.11 "Swimming, Pool" shall mean the swimming pool to be constructed by the Developer in that air space delineated in`Exhibit "A" designated "SS'iirn ni:i Pool" 1.12 "Lease" shall mean this Lease and Agreernent;for Development: bet .ecn the City and the Developer. dated April 20, 1978 and all amendments thereto, acilities for at least 1.13 "Parking Facilities" shall mean :parking :f 10011 automobiles in convenient proximity to the Convention Center and constructed: laid olper1►tcd as provided in Section 9. 1.1,1 retniseS.' "Premises". shall mean -the Demised Pretnises and .the Excepted 1.15 "Project" shall mean- the Convention Center, the Hotel and the Parkin;; 1ltcthties together '. ith. lanclscapin7, ,and all furniture, ,ft tunes and equiprnvtit used therein. -5- 114LFWMgmntt 1.10 "Shell Spaces" shall mean those unfinished areas of the Convention Center to be completed, furnished, fixtured and equipped . by the Developer comprising the <Additional 'Hotel ;Spaces. The initial term of this Lease shall commence on the date hereof and end forty five years after the date on which the Hotel First The parties will execute in recordable form a memorandum eviclericing the date on .which the Hotel first opens for business within 30 days after such date. Renewal Term.. - This Lease may be renewed upon the same terms and conditions as contained herein for an additional forty-five (45) years after: tl: expiration of the Initial Term hereof provided the Developer is not then in default, upon the following conditions: (a) In consideration of ;such renewal of this Lease, the llavOlodcr. agrees to extensively refurbish, update, and .modernize.. the fixtures, f!.r;isi_liir.; and cquipm.ent of the Hotel within one year after the commencement of such renewal term or show evidence that the Developer has done same before the commencement of such renewal term. (b) If refinancing of the liotel is , required reiurri_ihirr„;as required in aforcrnentioned section, the Cityand shall rcrres;otirite the rent provisions of this Lease. • Lease 'term. The Initial Term and Renewal Term are or purposes of the Developer herein referred to',as the "Loose Tcrrn". Section 3. i.4irt :or anti during the Initr it .Ter al shall const.t of Base Rent. and Additional (tent payable as herein provided. the riseht 3.1 Base Rent. (a) Base Rent shall be equal to the present value of all of of>the Developer tinder .this •Lease out in S etion 2.2) to be determined by appraisal of two: independent, fully qualified appraisers. present agreement shall not be less than $1,750,000. value shall be determined as of April 20, 1978 and by (b) The Developer shall pay to the City Base Rent in advance on the date the Hotel First Opens For Business, provided however, that if • the 13cise Rent, computed as determined in Section 3.1(a)exceeds $1,750,000, $1,750,000 shall be payable on said date and the !excess amount shall be paid in 90 cgit.:1 Semi -annual installments including interest at 1096 per annumon unpaid balances 1'emaining frorn time to time clue and payable on the dates provided for in Section 3.3 for the payment of Additional Rent. (c) The deferred portion; of Base Rent at the election of the Developer mtiy be prepaid in Whole or part.. at any time without penalty, or premium. .Additional Rent. (a) In addition to the Base Rent, the Developerr shall the City; Additional Rent based upon Gross Sales computed as follows: 1)ollar Volume; of Gross Sales Additional Rent as a Percentage of Gross Sales pay to 0 - 24,000,000. 0 2.1,000,001 - 30,000,000 1.25(X3 3U,U00,001 - 35,000.,000 2.0096.00 :15,000,001 - 50,000,000 li 96 Gross Sales exceed $50,0(10,000 the T)evelopct shalt art"' to the City i��itlitionc:l I;ent in the.:uriotint of $t,;500,000 subject to ttpv ard adjusttncnt for equivalent increases in the Consumer Price Index for the .City of Miami, or such other comparable index which may in effect from time to time if said Consumer Price Index is unavailable, using the index for the first year in which Gross Sales • exceed' 50,000,000 as a base year. "Gross Sales" shall mean,` on an annual basis, gross room rentals, charges or other revenue therefrom; gross food and beverages sales or services; Excluded from Gross Sales shall be commissions paid on room rentals at a rate normally paid in the operation of a first-class hotel. (c) Each semi-annual payment of Additional Rent snail be computed on estimates of annual Gross Sales as determined by Developer (witl'the final suni determined in accordance with Section 3.4) less the amount of Base Rent p;ii(.1 the City pursuant to Section 3.1(b) for the applicable period. (d) Payment of Additional Rent shall be deferred if there tire no fund available to the Developer after the payment of principal, interest' and participation interest on Developer's first 'mortgage. That portion of the deferred Additiontrl ],crit shall accrue with interest equal to 1/2So above the rate paid by the City on itsltevenue Bonds issued, in connection with construction of the Convention Center.' 'I hi: aggregate amount of such accruals of unpaid Additional Rent shall be due rua:i p,:yaitile by<the Developer to the City at the end of each tenth (10th) year r.ric.l in the end of the forty-fifth (45th) after the Flotel first' opens for business. Portlier,` provided, that if there are any funds available to the payment of principal, and participation interest on Developer's first mort'-',Vr' and there exists unpaid accrued Additional Rent for_ any prior year or yenrs, such funds available shall bn applicd to the payment of saidunpaid accrued Adclitiooin;r1 !lent. accottntrurts selected by the City as often as may be reasonably requested. Such inspection and audit shall be at the City's expense unless such inspectionor audit shall disclose the existence of a variance of more than five percent (596) from the Additional Rent for such period computed in connection with the annual accounting ' statement furnished to the City by the Developer, in which case such inspection • and examination shall be at the Developer's expense, and the cost thereof shall be immediately paid to the City by the Developer. Rent and all other ° sums payable by Developer . hereunder shall be paid without notice, demand, counterclaim, setoff, deduction or defense and without, abatement, suspension, deferment, diminution or reduction except if the Developer shall incur any cost or pay any sum anywhere in this Lease prescribed to be obligations of City, (for example, and not by way of limitation, p)aynient by Developer" of City's obligations for any real estate and/or personal property taxes, and for insurance premiums owed by City on insurance required to be carried by City hereunder and for maintenance, repair and/or replacement of the Convention Center, and any of City's furniture, fixtures and equipment the►ein, which are necessary to the support for, the maintenance and repair and/or replacement of support of the Developer's Improvements and provide access and, other. the overall ftic:ility) then the Developer shall have a claim : against the City which claim un(i interest thereon at the rate at which funds are available to the l)evolope , if not sooner paid, may be offsetagainst Additional Rent next corning' due one year following the date on which the claim arose. • Section 1. 1NCIZEI\I1 NTAL:COS'1'S. In :uldition to Rent, the Developer shalt pay to the City, $1,500,000in UR; rLpreseniing the incremental costa to the silty of. constructing --10- structural, mechanical, electrical and plumbing, elements in the Convention Center in sufficient size and capacity to serve the Demised Premises which incremental would not be incurred by the City but for 'the Hotel. The Developer's costs contribution to incremental costs shall be paid pro tanto as the work progresses • based on receipt of necessary certificates• submitted by the City to the• Developer. Section 5. CONSTRUCTION OP THE HOTEL. 5.1 Developer's Obligation to Construct the Hotel. (a) The Developer agrees for itself, its successor and assigns, and every successor in interest to the leased estate in the Demised. 'remises; or any part thereof, that the Developer and such successor and assigns, shall promptly begin and diligently prosecute to completion the development of the 1 Demised Premises through the construction of the Hotel. Subject to the terms and conditions herein contained, (b) the I)evc..loner shall construct the Hotel fully stociced, adequately capitalized, and ready to commence business within the .time limits provided herein. The ,Hotel shall be constructed substantially in:accordance >with the proposal attached hereto C . The Developer recognizes thato „ „ g, the availability°of the 1-Intel at the as. Exhibit Center is important to the, successful operation of ;'the The Ilotel shall be deemed "fully equipped and stoc1;ed, Convention Center. Convention and ready'to commcnee .buiness", in accordance with applicable standards of the Iiotcl Aaoci.:ltion.. As to whether the Developer has been "adequately capitalized", such rnttttcr shall bu determined to the satisfaction of the City prior to the time that the Developer cornnlenceS construction of the Hotel, which will include American ir, to the City that the Developer has ;lvailablc adequate equity funds • rr`c,ttire;l ro.'r and above the amount of its fina nciu::;. -11- construction and ' permanent loan buildings, structures or improvements thereon. The City shall require lien waivers from contractors and sub -contractors in order to comply with the Mechanics' lien laws of the State of Florida or copy of title insurance endorsement instaring* over 5.13 Mechanics' and Materialraen's Liens (a) If, because of any act or 01111s. sion of the Developer, or any contractor or sub -contractor, any mechanics' or rnaterialmen's lien or other lien for labor, material, fuel, machinery or supplies shall be filed against the 1)einised Premises, or any bui1din, structure or 1111Provenient thereon, or against the Excepted Premises, the Developer, shall, within thirty (30) days of filing; of such lien, cause the same to be cancelled and discharged of record, bonded off, or insured v.gaiiist by title insurance company acceptable to City. (b) If, because of any act °I. omission of the City, or any contractor or sul.)-contractor, any mechanics' or materialirien's lien or other lien for rilziterial, fuel, machinery or supplies shall be filed against the Excepted Premises, or :illy building, structure or improvement thereon, or against the Demised Premises the City, shall within thirty (30) days of filing of such lien, cause the :;Lint to be cancelled and discharged of record, bonded off or satisfied by title (.)i)iilioti acceptable to the Developer. Section 0. CONS'fil UCTION OF' TiIE CONVENTION CENTER.. G.1 The City shall construct at its sole cost and expense (except as set forth in Section 4) and lien free a fully -equipped Convention Center, including :;111)ort eltIffielits for the flotel, substantially ui accordance with the plans prepared b‘r Fei•c:itrlino, Grafton, Spillis arid Candela, as identified in Exhibit "D" appended rnttcle it ptArt Ilcrcol. It the G1Ly desires to make any substantive changes in the Convention Center as set forth in Exhibit "D", the City shall submit the proposed changes to the Developer for its determination as to Lease or, if not in conformity whether'" such change" is in conformity with this therewith, is • otherwise acceptable to the. Developer. If the proposed changes conform to the requirements hereof, the Developer shall notify the City in writing of its determination. 6.2 Additional Improvements by the City. " The City shall, without expense to the Developer or public assessment against the Demised .Premises, and without impeding the progress of the construction of the Hotel by the. Developer, provide for the following: usual (a) Paving and . improving in accordance with the technical specifications and standards of the City of such streets, including the installation of gutters, curbs, and catch basins; street lighting, sidewalks; and such public rights-of-ti:ay as are tobe provided pursuant to the development plan for the Convention Center. (b) Installing and relocating such sewers, drains, water and gas distribution lines, and electric, telephone, and telegraph installations as are to be installed or relocated pursuant to the development plan for the Convention Center. 6.3 Time for ;Performance by City. Timeis of the essence in perforin;:ncc; by the City and the Developer of their respective obligations to conStruet. The 1)eveloper's performance is . dependent upon performance by the C ity, and the City therefore covenants `.with ':the Developer to clo:"and ".. within the follo%v ng p1escribcd time 1i`mitS:. (a) The design •develonrnent plans and specifications for perforin • the.• irniprovcwents to be constructed by the City must be "completed on or before -18- II 111111111111111111111111 (( 8.2 Use of Facilities. All food and beverage service in the Convention Center and Conference Center shall be under single concession hereby granted the Developer for the Lease Term. The Developer and the City shall cooperate to develop a booking procedure for the ball room banquet, exhibition and meeting rooms and other like facilities which will permit the City and the Developer to schedule the use of such facilities without conflict and result in maximizing the use of such facilities consistent with the respective objectives of the parties. The parties contemplate that full use of facilities will necessitate hiring by the City of the Developer's facilities as well as hiring by the Developer of the City's facilities. The rates and charges for use of such facilities shall be the stime /is those charged third parties'and the City and the Developer shall settle • accounts bet,.vcen themselves with respect to such rates and charges when rents are due under Section 3.3. 8.3 Maintenance of Convention Center. The City at its expense shall operate and maintain the Excepted Premises, the improvements thereon and the (!ciiiii)nlent, furnishings and fixtures therein in good and clean order and eeTiclitinn ;Inc! Il1l promptly rnal:e all necessary or appropriate repairs, replticerne;its and renewals t.liei•eof, svliother interior or exterior, structural or non- f;tructtiir:11, ordinary or extraordinary, foreseen or tinfoi.seen. All repairs, tc renewals shall be equal in and class te the original o l wer_: t lc c.1)1'1(!rlillc'll • ti.o.ti s11:111 include, but shall not be Moc Malted to, bearing Convintiun c:e fitc:c. sales force d an adequate staff to service the Con%e.iition (;enter 1)o:dr-Loss, arid i'eserves f:rnrepiaccments, which reserves shri1,1 be sufficient i() tilt! C;ity's c)t)lip,.1.1tit-)rt titicl(t• this sr.C4S.Ct VIrt,StIccit SIilLi11,tl:rail icn SObfs2 St!fi tr) tt('CO111!)liSil the City's otiligations t. -22- Section 12. RESTRICTIONS ON USE. 12.1 Authorized Uses. The Developer shall use and operate the Hotel as a first-class hotel and the Additional Hotel Spaces for the intended purposes tncI square footages as follows: Additional Hotel Space Number AsShownon Exhibit "B" Intended Purpose Area in sgtiare Peet 1 Engineering/Maintenaee 2,461 2; . General Storage 2,773 3 Men's and Women's Lockers and Toilets 2,473 ,1 Housekeeping 3,048 5 Laundry Rooms 4,510 G Personnel/Security 280 7 Receiving/Personnel 2,555 Accounting 1,380 Kitchen/Employees' Cafeteria 8,674 10 Hotel Offices 3,840 11 • Trash Room 384 12 Food Service Corridor 629 13 Ballroom Storages 2,349 11 Liquor Storages/Cooler . 651 15 Main Ballroom 11,248' 1G Pre -Function • 3,700 17 Retail 24354 18 Front Desk 2,169 19 Lobby Lounge 1,9.68 20 Public Toilets 1, 080 21 • Coffee Shop 3,049 22 hitchen 3,321 23 Oyster Bar 1,517 2:1 Restaurant 5,747. 25 3,770 Palm Court Total 97,930 S.F. 12.. Gaming. In the event gamin is legalized the ;.fate of. Florida, Dude County'alicl the City of `'Miami, a ;<<'rPC(-i.1L'lt'tltt:.1)ernised Pt•eall;es may1)t: llse(1"for .11lclt.gnn or authoriZcd`witliin is'herehy, specifically ling ptlr[)oses pursutiiit to licensiwr from the appropriate governmental authorities should such licclising be to the fullest extent permitted by law and equity, any and all claims or defenses otherwise available on the ground of its (or their) being or having become a person Whether reni, personal, or otherwise or Whether by agreement or operation of law, including, without limitation on the generality of the foregoing, any and all claims and defenses based upon extension of time, indulgence, or modification of terms of contract. Section 19. QUIET ENJOYMENT. The City covenants that the Developer, upon paying the Rent and other charges herein provided; for, and upon performing all- of the' other `covenants, and complying with agreements, terms and conditions of this Lease on its part to be performed or complied with, shall not be hindered or molested in its enjoyment of the Demised Premises or of its air, light and view. Section 20. MISCELLANEOUS. 20.1 Non -Discrimination. The Developer agrees it will not discriminate upon the basis of race, color, creed, national origin, age or sex in, the construction, sub -leasing, use, occupancy or operation of the Demised Premises or the Hotel to be erected thereon, and that each contract, sub -lease agreement or. with respect thereto shall specifically contain this provision. 20.2 Equal Opportunity Provision. (a) In the construction and operation of the Hotelneither Developer shall the Developer nor any contractor or manager employed :by' the d.iscriinin:ite against any employee or applicant for employment because of color, rcli;;iun, r2ge, see: or national origin, and theyshall. take ensure that applicants are employcd, and that employees arc race, treated : during nr, ::ithout regard to .their race ,.color ,;religion, age, se:{,.' or. -54- national affirmative action to LEGAL DESCRIPTION PROJECT: JAMES L. KNIGHT INTERNATIONAL CENTER :IIAMI, FLORIDA LEGAL DESCRIPTION - SUBJECT PARCELS - 1, 2 PARCEL feet less, Jbe_.,iest portion of. Block "A" of F-0R-T °`,r�.l.i_'!'.S PA K. 'being 67Y , more -or across South End thereof, and. 65 'Feet. .more or less. across North end thereof. aild 105.16 feet. norc or less, in'dcpCh,on the -West side thereof, and 122.16 feet r::o`e or. less,- in depth on the East side thereof. said tort Df comashPalrlksbei n.gPa Suvdivis':on: in -Miami , Dadc County, Florida, :reser ng thereof, such 5 feet to be set aside forstreet improvements. 3, 4, 12&13 t mOR,E . PART I'CULARLY ESCR I BED AS: line West portion of Block "A" of the Subdivision Fort ;Dallas Park, according to thc Pitt thereof , re:ordcd in Plat Bock 4, at Page 85. of the Public: Records of nadc County, Florida being 65 "feet . in t, i dth across tt•c North end thereof , and. D7 19 feet, more or less, across the South end t.he.reo`, and more particularly described as fol l ocis: BEGINNING at a point. in the; East'. line of an. unnamed street.ntlwhich cenppoi e nt is6thccet; north .qest: corner of said Block "A" Fort Dallas Park, 9 thence 'South at right angles and tiara; icl:; to the East: l ir.e .of said unnamed street, and the West line of said block "A". Fort Dallas Park, 122.16•feet to the North. ---11rle of Soi.'ituica ):,:4tr+ St -refit; t-renee", NorthWes`terl y wi th said North -line of South-. east 4th StreeL.'6-7.19 °feet to the East'linc of said unnamed Street. ‘lnich is the. Southv,cst corner. of said Block "A" Fort Dallas bPark. thencetNor l i ne therloysai with utihc West I irte of said Block "A" Fort Dallas Park. - g the named Street 105.16 feet . to the point. of . beg i nn ing:: reserving therefrom the West 5 feet thereof, said 5_ Feet to be set aside for street improvements. (Continued) 111E11 •J LEONARD A. RISZ. M.A.I.. REAL ESTATE APPRAISER AND CONSULTANT PROJECT: JAMES L. KNIGHT INTERNATIONAL CENTER :.I.AMI . FLORIDA LEGAL DESCRIPTION - SUBJECT PARCELS - 1, 2, 3, 4, 12 & 13 PARCEL 2 Also all that part of 61ock "A" of FORT DALLAS PARK AMENDED. 'as"recorded in I Sook 85. :oF thc"Pubiic Records of Dade County, Florida, being described as follo:.s: Commence at ,chc.:Northcast corner of--Block-"A" of the aforesaid plat.: "thence Westerly along the Northerly boundary line of said;Block "A'' .of aforesaid Plat, a distance of: 10:.O1 .feet, more or -less, -to a point of intersection with a line- pa ra l l e l to and 10.0 feet `Wes ter 1 y :of the Easter 1 y. boundary line of said B1 ock: `. "A" of afforesaid.Plat, thence Southerly paral lei toand' 10.0 feet Westerly of: the Easterly'boundary'line of`saiel 21Ock "^" a -distance - of 5.0 feet•to thc.pcin of beg,i,nning of the tract of land herein described,'thence continue South` para it c1 t.o and 10.0 .feet ,Iles terl y of the :Easterly boundary line of said Bloch "A a distance .of 111.77 feet, nore or less, to -a point of curve; thence along the arc o► a`tangential curve to•the right having,a radius of 25 feetand a central angle of 10V.30'45" a distance of 45.60 feet, more or less, to a, point of tangent. ,said point'of tangentbeing`on a line parallel to and i0.0 feet Northecsterly. from the' Southwesterly line of Block '!A"', thence Northwesterly pa ra l i e.l to and. 1,0. 0 feet Northeasterly from said Southwesterly 1 i ne of B iock "A" a di'stancc of.115,`%6' fleet, snore or ,less:to a point of. intersection with the East- er 1 y line of Rob.crt Clay Hote 1- proper t_y, thence ,Northerly .aLong the. Eas terl y boundary l i ne of said Robert .Clay Hotel .property, .said tine -being parallel to and 65 feet Easterly.of the.wes.terly boundary line of said Block "A'. a distance of 105.61 feet, ore,_or less, to o-;point 5.0 feet Southerly o,f the Northerly boundary line 'and 65 feet E s terly of the lies terl y boundary line -of sa d Bi ock "t , thence asteriy :ua"rallel to and,5.;feet. Southerly of the Nor heriy boundary line of said Block "A'':, a di:,tance. of 144:3 -feet< to :the'point. of beginning. ihdt- portion; cif-Slor:k "A" Lora ::ii`.las ,Park. according •to Plat recorded in Plat Book 4, Page 65, of the Public Records of ;;ado County, Florida said part :)eincq more par.ticularly described as .follows: Co,rmence at the Northcast corner of sad Biock 'A". according to saidPlat thence Westerly along the Northerly Inc of said Block "A". a distance of 10.01' feet more or less to•a point of intersection with a line parallel with and 10.0 .eet Westerly of the Easterly l inc<of said Biock ''A". 'thence Southerly parallel v,i t.h and 10.0 fcct Westerly of the Lnstcr1y line of ,`id Biock "A". a distance of 5.0 fact io thepoint of beginning of narccl to be described 'hcrein_..chercc continue Sou tl , 2 °.1 2' 0" Ease 89 03 'c "cr along 0 line? Para, l e l • with th and 10.0 feet`: .ai?-S .`€ , 3 „ ": c 'ti, ."5 " west 4 7 ales.�Er-�l-y'�.ofr���t,e-•�Easccrly l ins of said Block t� thence South 3 7 �3 - fcct thence North 2`12'07" West 24.32 fcct to the beginning of a curve ccnca•.^ Scuthuestcrly having a radius of 92.5 feet, thence Northwesterly 71.5S feet ale-13 said curve through a central angle 44'13'0i" to 7 poHt. 5.0 feet Southerly of ►' . ' ast 30.62 feet. the Northerly 1 inc of said Block "!a", thence ,orth u: :c ) • along a line 5.0 feet Southerly of and parallel with the ,•orthcrly line of sai Block "A" to Point of Beginninci. (Continued) (Continued) LLONARO A RISZ. M.A 1 . PEAL ESTATE APPRAISER AND CONSULTANT rn PROJECT: JAMES L. KNIGHT INTERNATIONAL CENTER MIAMI, FLORIDA (Continued) LEGAL DESCRIPTION - SUBJECT. PARCELS 1, 2, 3, 4, 12 &. 13 PARCEL L Conrncnc i ng at the Southeast corner of Lot 20 of FORT D:: LAS PARK, according to the Flat thereof recorded in Plat: Book l "6" , Page ,2,. o the Public Records of. ` Cede County.;` 1 or i d�: thence run West along the South rundary line of Lot 20 i 1 2 fcs= t.; thence run South parallel with the Wes._ bourdary line of said Lot 20, 2L2 feet, more or less, to ;the lo.:} water marl: on the North bon!, of the Miami River; thence run East meandering the low water' mark of said River 1 1 2 feet: mere or less, to a point ;directly South of the point of bcgir-ning; thence run. North 273 feet more or less, to the t.oint of beginning. ALSO BEGINNING at the Southeast ccrncr of said Lot 20, run West along. South. boundary line o; said Lot„ 20, ; 125 feet` to 'ant ';our.h ,est corner of. said Lot: 20; thence run North along the West line osold of 20, '? + feet: thence ; run East' ! Parallel with th the Sou Lhcrl y boundary line of said ' of 20, 125 feet thence run South along the Easterly boundary of said Lot`20, 24 `eet to Ohe point of be- ginning, said last above described land being the .o..th 24 feet of said ,_et 20 ,. in ror;t ..Dal-1as- Park. - PARCEL' The Nor th.'21 ' feet. -of ;Lot �20, a, the= Sou.th_24._feec `of Lol 2l ; .of FOfi`7 DAL't �S PARK iwEi�JDED PLM according .to th.c Plat thereof as .recorded in Pla.tBoo 1 �r'�;ci 2�, o! the Publ is Records cf 'Dade -County, F:lorida', LESS that port itin ot= t1ie. rout:►.� 21, cet of said' Lot. �21cn for, Ri gFlrloy ��.of State Road No ,4. I IIII1•1 PARCEL 12 Lots 33 and 39 .of .AMENDED PLAT OF A. PART OF FORT DALLAS PARK, according to the Plat thereof, as recorded in Plat Book 4 at Page 85 of: the. Public Records of Dade (-aunty, . Florida; and East 1 ine of said Lot 39; thence run South parallel to S. E. Second :Avenue a distance of 10 feet; thence run West parallel to the South line of said Lot 39. a distance of. Ile feet; thence run North to the South line of S. E. Fourth Street:- PROJECT: JAMES L. KNIGHT INTERNATIONAL CENTER MI MI , FLORIDA LEGAL DESCRIPTION - SUBJECT PARCELS ;- 1, 2, 3, 4, 12 & 13 0 z Doi o.;cnce at the Scu tFmies t corn_ er of Lot 39 of AMENDED PLAT OF A PART OF FORT DALLA:S PARK, according to the Plat thereof, as recorded in Plat Book 4 at Page • 85 :or the Pub 1 i c Records of Dade County, Florida; thence run East along the South line of said Lot 39 a .,distance of 95 feet to a point :5 feet Nest of the: thence-.r un .Easter1y along the South line of said S. E. Fourth Street- to ;.the Point.`.. of Beginning. 1 > (Parcel: i? is referred :to.herein o Ali or. E.l oc1: B, except the East 5 feet thereof. of FORT DALLAS o the P1 t.. tr.erc•oF; as recorded in Plat Book 4 .at Page 85 of the Dade Count; � Florida• excepting the following• eq I r:i: i n : at' the: S W. corner of Lot 39-of FORT DALLAS 'PARK according to the recorded .i n. Plat_; Book 4 at Page 85 of :,the Public Records of Count-, Florida;- thence'East aiong the South l ir,c of Lot 39 for 95 feet: to ��.;Uir.r ,�Aet:t�!est.'`of thc:East line of said Lot;°39 thence South. paral lel to. S. -eccnd Averu.�i�iarii , Florida, ;for..10 fc_t; thence Wcst �paral 1el` to the : "tt: 1:; nc o ;4 i a tor::', for 1, � reef thence North to the South 1 i r.e of S. E. "c,rti� S: refit, �. i, :r loci da:; thence East< along the South °1 inr of said S. E. c,. rt •:t _..fit to: tl.e� Point"of:: Beginning. P i re! trr_d `to here: n as the "GRANADA.``PROPERTY" PARK according to Pub l ic Records et'. (Continued) II _J II. scope THE CENTER WILL BE COMPRISED OF THE FOLLOWING ELEMENTS:. CITY OF MIAMI CONVENTION CENTER 1) 5, 000 SEAT AUDITORIUM 2) 30, 000 SQ. FT. OF EXHIBIT AREA INCLUDING- BALLROOMi PREFUNCTION� PROMENADE AND ADJACENT MEETING ROOMS AND; EXHIBIT AI:EA, 3) 2 - 500 SEAT MEETING ROOM BALLROOM), •. 4) 1 - 190 SEAT DIVISIBLE MEETING ROOM 2 - 160 SEAT DIVISIBLE MEETING ROOM 6 - 25 SEAT MEETING ROOMS 30;SEAT SEMINAR ROOMS. UNIVERSITY OF MIAMI CONFERENCE 'CENTER 1) 1 500 SEAT AUDITORIUM SLOPED FLOOR).`; 2) 1 - 150 SEAT AUDITORIUM (SLOPED FLOOR). 3) 2 - 75 SEAT CLASSROOMS OR EXHIBIT AREA... 4) 3 - 45 SEAT SEMINAR ROOMS. 5) ;: TECHN ICAL AND AUDIOVISUAL. DEPARTMENT. 6) SELF -INSTRUCTIONAL LIBRARY. 608 ROOM HOTEL RESTAURANTS, SHOPS AND, BOUTIQUES 1110-••••••••= •••••mallINJ �� �' ;.its % X i•l'> /` fey ' �.: Z` �.r yti., ir.. "' propose to build • the city of miami and the university of miami p , p a unique center of quality, comfortand all tsoypes conferences and create an exciting environment whereY and conventions can be held. a TII'1,-. -.::;--------:------ -- --• .. - _____---7.7.;`;:.27:-. ,---•,7:.7-:-..._--.e--.•-•••!•_•• _`-—_•-•------:-7-1- =^•- - •7. 4:rFf-_?f', ..-L4A.`7,.7.i.a-7•I )-1. ;,31 •, , ;_-- _..,i 7 -_4 -i _*t2,-v -- aL:- •=.7.-•::.-.t4-e1. -,1 7-'.-•..:7"!,P•*0,.•-'-,..-r.,-- .\' k1;;lS-,-:i-•.;1-.1.-.41- 7.•,.7.:.-:'.i11.' :".-?'•.'1'•• •.7'-e-0-1'•,'"5.-"V-'"C"C---P •A•.l'i•.y•7,•r0.•)_.-- -.-•+-.--r.7.;-4--.-'-,k.7-,.: -\,:,i--••-,-..-••E„••-,-:1r:‘,„•.9•. 'r.•-•-.-.i.•.•...1 .•..l,„•.-."-_-,sT_'--"-,-. y-', -.,r•1.=..,,..• -T•.-7- •(,•_ ".L.:.41 :-c.=•7•7,•-•-,-"1.,.•.,1"•!1"--i1.,e- .•0 N _4._ _• ' .-, _ .-: _:. ;-;,f — _,Of .1rIT " i , -:— '. .. 1.•4i .-,.',,' .::.. . • _ ,-- ,— — • 4:y11j. • r• •1•:•••••• . • i j , • . 1 _J mol ..144••••,— • - • • 1 * yI i1 , 1 • 1 = • 1 • =1 1 1 • 1 1i •--„,••• ...-. — ------ ••-•-•---,,! ,..... y.1. ,•‘"•N•4, 7 ' -- , --..----•••1•.;,.,.:;;. .., ,LT,....., •'' \:,,,--;_____,-- - s . ' ': $' C, )1 " 4 t 1 1 ,• - 1 1 ; ; 1 . • ; 1;7 -1) • —:.i11,--4'2:0,,1-1•••.•;••;•.1,'/ 71-r 14)4 ;1 I 14\11\ \ I - • 1_1\1 F I.? s•-: -7741. T.11-;:,0.1-;*#---).t • : 1" • • 4,V \(%t t!! 11\ \tiVI-M • ,\L.. • . ,:•1 , \ '.. , ;',\4%-\\\, r- '''-',-' ' ''"•:-. ' -, -, F i• .1:, .• - ••'\ : \ '); 0 ,.•.,... ‘ , ' N. v•N',•••• —. . :,....:.tfrt,rt,, •4t'ill' -‘ - fi./. c , .,...•li-N. i V- ...4••••• \ t. • . :1::::i. L. j.. \ ...:•:, i.-.•-•I'''';,S '..::"'. .!,\%•';'.1 A ..:••••• • 1••••••: t.. f • • e • •a •• •• • • •'' • k. . .a.:• s• •n••11?.. • • • . •!•• . • ' • •: • . • • • '. • crmulti -use com le c,where. an environment celebrating international goods with a carefully merchandisedi—of speciality restaurants, cafes and. related retail shops,will be created under a dramatic .skylight atrium opening to outdoors terraces and the miami river front. •=0•41.4.• .1, t .t• , • CITY OF I‘TERSI'I'Y OF MIAMI 3...."IES L. }NIGHT Ili"'.1.EP•IIP-TIONAL CENTER kIIAMI nop,tr)A 111ARIMT S T1.11 Al5D PROJECTIONS JUNE 1979. • „. ." •••••••• I-1 • ( I. 13ACI':C.:P.OIRND • PROJECT OVEPXIEW ,••• A N.t 11. 4 °. ".1..1- • . • The City C3 f Ili- ----at..is ( th. ,e.... ;'...1.6, i.: t:. Ytt). • has ' e-n'::.7-ddliiinarat°i sceepaatrerateAsasgroceieamtaeilst's with the University of ' *\, (the .:!'.U..7i.V.e..rait}.") . Ltd., a 3-imited Partncrsh3-P) c\......., ilLatll ''. ..'. ling for . • •Ifix_aveloparit), cal. the dev.elopra.n..teodf along the Miami River at S.E. Second Avenue inF a civic ee_rit:ericonvention;con.ftellree:ce/hotel comPlex., °in, a3.50r•5idaac.re Site 1°e"t The cornple:: %gill be Itnown as their.; City of /tierr,i/lirtive--s3-.tY of -/I•i-dilli 3P-mes L. ir.4-6".ht. inter- national Center (thf.... "I:night Center") and u-ill contain eleme.nts opet-ated indi- viduri1.1.y by the Ci.ty, the liniversit7.,, and the Developer. • •11 vri arid operate a civic and convention center cons -St- • BACKCROt'ND I-2 ing of approximately 55,000 square feet of space, net of corridors and support facilities of space a Terence and a 9S8-space parking.garage, The University will lease from the net of corridors and support facili , center. city,,: approximately:20,000 square fee ties in,, -which.` it will operate a con- _ portion of .the ne Developer will lease from "the City air rights of a c and convention center andcertain areas within area comprising the civi r.' center itself in which it yi11-operate notel") and retail stores... uillion. the a 60&room Hyatt Regency hotel (the The total cost of, the project is T• ne facilities to be furnishings and equipment • estimated to be approximately ,$81.9 owned by the ;'City,,' excluding certain'; furniture, Uni ersity's conference center, are estimated to cost approximately;$49.9 million and ,will`. be constru. funds currently; possessed by or comi equipped utilizing such use acid the proceeds of Lease-: this' .purpose City • in the at i ted,.furnished and . tted to the City for venue Notes to be issued by t City for . The furniture,:furnishings and equipment not provided by the University's conference center will be provided by the University own e):nense. ne Hote? including all furniture, fixturesan mated ` to cos approximately $32 million and -'will ,be finan investment by the Developer and construction ,and .per.anen equpmant, is esti- ed. through cq i .ty mortgage loans to the Developer from:the Continental I11znois`iational Ban1; and -Truss Company of Chicago and the Massachusetts Mutual Life Insurance Company, respectively. TAELE I-1 CITY OF EIA= CIVIC AND CONVENTION CENTER AND PARKING GARAGE JAMES L. KNIGHT INTERNATIONAL CENTER Faci1iti`es Location Theatre/Auditorium Total Levels 3, Section 1 2 3. Meeting rooms A - To al Level Section'' . 3.. Size (1). (Scuare feet). 50.000 (approx. 17,500 20,000 12,500 250':. 850 850 - Total Level::3 966,. Section 1 463 2 483 Total Level3 483 Total Level 3 483° - Total Level 3 483 - Total Level '=3 483 Lobbies/of ice/support Parking garage Retail stores Levels 1,3, 15 , 950 `. Separate building N/. garage walkw N/A - Not applicable 1, SUS 1 " (1) Source: Ferendino Grafton SpillisCandela. L 000 ;Caacity .000 seats 1,750 2,000 1,250 225 seats '85 55 ' 85 96 seats 48 48 48 seats 48 seats 48'seats 48 seats N/A 988 spaces N/A • I. BACKGROUND 1-3 .• DZSCRIF710:: OF FACILITIES Exhibit I-1 (facit-tg page 1-2) presents an o- tne pro- posed project as designed by the limn of Ferf.,.ndino Gra.ton Spillis Candela of Coral Gables Florida. The complex will consist of: • e A four-story base building containing the meeting ro=s , offices, storage and support. facilities to be operated by the City and the University, and the meeting rooms, retail stores, food and beverage, storage and other sup- port facilities to be operated by the Hotel. • A 19-story tower located atop the east. -.ern portion of the base building containing the 608 hotel. guest rooms. • A 988-space parking garage to be located al3art_,walkway.frora ,hut connected to, the main building via an enclosea Although there besethese separate outsidet-:.asheeestotbe City s civic n and conventiocent.er and the Hyatt Regency Rotel, facilities, and those comprising the univer.s.....ty, s corlferencec.c....n. tet, he interconnected and not readily distinguishable as separate entities. • • ., City of Miami Civic and Convention Center • and 3.3arkinz Gat -ace • . • • The City will own and operate those ..a.ci.lities listed and described in Ta.ble 1-1. These consist priir.arily of a 5,000-seat theat-reinudit°rjuia' six meeting rooms and the gss..Space parkin 8 Sereb'e• The theatre/audi- torium will contain 4 000 fixed seats in a tiered configuration and a.pp:...o:::.- Inately 10,000 square feet of flat floor area in which various slr.e stage fac:..1- TABLE I-2 UNIVERSITY OF valoa KNIGHT CONFERENCE CENTER JAMES L. KNIGHT INTERNkTIONAL CENTER Fac4litits Auditorittn Lecttire room Class:.-ooms A - Total Section 1 2 B - Total C - Total D - Total Library Pre- funct-_ion Ofr:ices/audi.ovisuz.1/ suppot-t N/A - NOt..api)licable„ (1) Sourae: Ferendino Graftbn-STIalis Candela Size (1) (Set.ta:.-t... feet) C2.112CitV ,LF10 500 seats 1.677 150 2.050 1,025 1,025 LLevel 11 3373 . 1.7-1-3P-73°6°7 3 . . 77C°°A , (3 °1 1/A Level 3 4.255 Is./ Let.rel Levels 3,4 . —'— ..• • 204 102 102 1 • I. BACK.C.MOINII • .ties and/or 1,000 additional seats can be set. Seating in the flat floor area would be elevated in a tiered configuration to fit with that of the fixed seating. The theatre will be divisible into three sections with seat- ing for 1,250, 1,750 and 2,000 persons, respectively. It will be equipped ithfacilit.-.ies peinitting simultaneous translation. • The parking garage would service all elements of the Knight Center complel:. tInlver.sity of Itiami Krliczht Conference Center The tjoiversity will lease ....r--...o.tn the City '-hese facilities listed and described' ' , v..,...;1t.alniThet.Diceolli,....:e2re.neTehecsen°t...pf_arcial::_tuls,eisisip_Iso'binleslciu....:te:11°ibP:e.srd;:t;:e°drup.:sisevinetrihnsealrt.brts.,'.ivce.r%.°,,,ras::2:re)::ent.er con-c:s--2.- e..' uing education Prog,...m .......,. -id c°1:-3-:d with sophisticated audiovisual equipme.nt, In..cs.1u.ding.nclos.d cir- cuit be eq ' permitting cuit te.iev-isi:.Pun--and A.ZacL ..... .........': ' simuol..stane.eust:-. .... ...: the 500- •lit3.es.,,Pe . . . anslatl.on 1 . seat auditorium. • .......... . . s\l‘. •• ' • .-' . - „ , • • - • . • • • • ' • - , • ' • ' • - • — ' , ' , . • , • ' • • . • t m • si v i i 110 I I I I 0 k ' • . ' . • , • • .4110111.11111MierimiNsiwielmewinimmumwommow • - , • . , • - . • • • 1. BACKGROUND I-6 O?gr^ A.T7G AC,PE M NTS Following is a summary ofpertinent terms in the _agreements between the city and the University, and the City and the Developer which have bearing on the utilization and financial projections'presented in, this report. The summary has' been prepared from a review of sentations made by the Project Director the original agreements and repre- concern We have relied solely on representations made the performance agreements. by all parties in`matters City Of Miami University of Miami': by the Project Director elated to the originaland agreements. concerning revised he University; agrees to lease from the City those areas and others, y it l make $2.5,. described in this report for which the University' has r.:de and periodic prepayments of rental. to an escrow, agent amounting to million,in_total. These funds will .be dePposited to:;the City upon •completion of;the`Y.night Center, as defined in the agreement, and covered by the will entitle the :University,to utilise the facilities agreement for a 30-year period at no additional rental charge. University will have the option to renew the lease The for..two additional 30-year terms under conditions outlined,: in -the agreement. The City td.11;_provide and pay for securi services for the University's fa ilities`but will b custodial `aad sin enance reimbursed 'for these expenses ..p by the University in auntsto be agreed .upon by both tACKGROLIND I-7 • parties. If both parties cannot agree, or if the level of security, custodial`` and maintenance services is. not acceptable to the University, the University will have the right provide its own services. i3ote The. financial projections presented, in this report are based on the assumption`that the,Citywould be reimbursed in fu11 for the cost of providing these services. 3. The Universit; will ,pay utilities expenses for its facilities. . The University will pay for. personal property and public liabzl.ty insurance for its facilities and reimburse the City for the cost of,insuring the real property leased by the 'University. SZ 5. The C.ty',i+ill require the Developer to. pay,to the University an amount of 15 percent of hotel guest room sales orthe equivalent of prevailing industry standards for hotel guest room sales generated from act or `conferences arranged by the University '_s conference;" staff City of..Miam?/Developer _ he:D�veloper agrees to lease from ivities the City:theair rights and areds described in this report,and otners, for a period of 45 years under n ' on . to renew terms set forth in this report,.; and others, w_th an• c the lease for an additional 45 years under;terus set agreement. or th in the • 1. BACKGROIND 1-8 C 2. .The Developer agrees to contribute to the City $5.7 million to be used • for the construction of certain real property to be leased by the Dn aveloer and for the purchase of certain fixtures arid equipment to • be contained in facilities leased by the rkwel0Per and/or requlred or the or•eration of the hotel. Of this amount, $5.3 million will be con- - • . tributed to the City as construct -.ion of the project progresses. The remaining $400,000 will be contributed i.nstallmnts of $40,000 • , pay -able annually be.gintlitig one year after the project is uUy con-, •• . • plete and in operation subject to the following conditiOn: The $40,000 annual payment will be reduced by the amount of $1.53 per square foot for the average amount of the 26,000 scitial-e feet of ret.ai]. space oper- tt, ated by the Hotel which was vacant over the previous year. • 3. •The De'v eloper will pay rent to the City ann-ually for the air rights and , 4`: • •J‘)\- facilities 3.eased bythe Devel.ol3er;..• .; • • • ' • . • . , , • 1 • • - . • - - - - • ' c y' :, ' . 1 / / - / •" • // %. /• / /'/ur•- / e • •-� —o — O SEMI 0=' @,.retetfiT Ad4-SE . EXH/8 / % Dower liumwro Ceeene No G•7S6S Sheet No S•1 total 0 • • JfCTr.1 1-2 ts.Fse CxAi/ a 11111111111111111111.11111.101 • IVW OCat C0= ta • r® • —L• 0 Q e l l••Mt• • U LES E�►� - !Lila 'rep0'1I.a. Oft) o-! Iu.w LE PEI. ac=o 4'.4-ie Ex'►•03i7 Cam Nc G-7S6S Sheet N . --i tetal Bj fit 9 ••4Ht • • 1 1 Y•. 1Ir•V. •1•�• •i "'.1. •Y{ {` 7 --- ° iL^fr.. • j{ •� {tj i LE=E.JD:. 4EE %l-ioJ Lstc) E•/-91 °T •d R n t .1. • OCR C O—ITCYjE tti .•••••s•,G Rev Mali Li vct V-6 COI'1^' • C•7S= S^ee:• • • (7- -• . . . , y, - • 1 .. • -eN •; • *- 1.•;":T • • I.. ••„ss• -• • , • ...—..- • • 0 o o ?• e=" be-tt Ae4 11.11111.1.111.1111111011 • • ••••••• r • 4 3 . .73 Vez. 354. it 4.1 Comm Na G-1565 sneel total _23 -s .a� CITY OF MIAMI. FLORIDA INTER -OFFICE MEMORANDUM TO: FROM: Planning Advisory Board Jim Reid, Director, Planning Department' DATE: February 7,. 1979. FILE: SUOJECT:StatUS Report on Zoning Ordinance REFERENCES: ENCLOSUREI3` the Downtown The Planning Department is commencing the process leading to public hearings on revisions to the Downtown Zoning Districts, both text and boundaries. As compared with previous recommendations made by the Downtown Miami 1973-1985:Urban Development and Zoning Plan prepared by WMRT, the Planning Department recommendations will include a smaller area; reduce the number of proposed districts; require mandatory amenities; revise ..Floor -Area -Ratios; eliminate the requirement for on -site parking, and revise sign controls. • Background Downtown zoning recommendations were originally recommended.in the Downtown Miami 1973-1985.An Urban Development -and Zoning.Plan prepared by Wallace McHarg Roberts and Todd.in';.1973.."At°,th'at time, the consultants cited the following deficiencies in the' present zoning regulations: 1. Excessive Bulk. Allowance. .',The present C-3 District, which allows the equivalent of'an FAR:30 far exceeds the most intensively developed block'downtown,' which has an FAR:13.7. . Excessive Land Allocations for High. Intensity Develop- ment. Approximately 160 acres are zoned C-3, which vastly exceeds the amount needed to meet future demand. ▪ Lack of a Medium Bulk District. No district, except C-3 allows FAR greater than 2 AbsenceofControls to Implement aParking Policy. Parking in the C-3 District is controlled only by conditional use approval, farshortof a. comprehensive parking policy. Planning Advisory Board ebruary 7, 1979 4. Parking.. Within the proposed CBD-3 District, no on- .E.-t7e-parking would be required. If a developer pro- poses on -site parking, conditional use approval would be required based on parking policies recommended in the Special Public Interest District regulations. Within the proposed CBD-2 and CBD-1 Districts, some on -site parking would be required, subject to the ; parking policies.. Within•the Downtown, sign controls would b revlsed. ) 6. Ammaa. (Below and following Page • Floor Area Ratios proposed New Distric Residential _______ Usable Open Other Mixed Distrio (Former t) 11.0 13.0* 15 C/-17° le CBD-3 (C-3) 4.0-5.0* 6.0 120 S.F./D.U. CBD -25.0 (C -3B) 6.0 2.4 • CBD -1 7.0 .(c-313) *Bonus for proximity to transit statio . r s7i'y. (fro'E ' �• j1./.°9 6SL%L/ • VJcW "...Lame ca liftdio or" -agftrialy pint, swig iv day w hair aftwoffer w wwwva b31N3,2 113AI Merv/ 03711iA73.97N IITS` dv'yy Abvd1UfO9 1 II MB I i ♦7.- mow. �•..,- . • ,. . .— _- ♦ fi 416:- N. \ 1-tow. i• •t ' � h s`y►� ~•J w I 4 \ \NIS I , —4.__ s— . — I i n 0 00 1 • .....1.110 fr 7— / 1 M4 �r a.nt, Deft Comm No 0•75ss Von Na A -I tot. w_ti..=wo J..... r v� 000 A•4.0.0 • • • i 111111111111Miniiim