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RESOLUTION NO.
THE CITY MANAGER IS AUTHORIZED TO DRAW UP AN
AGREEMENT WITH THE DEVELOPERMIAMIENTER
ASSOCIATESu,LTD.,.:ET AL, TO FINANCE AND,DEVELOP
THEMIAMI.WORLD TRADE CENTER BASED UPON COMMIT-
MENTSPRESENTED-TO THE COMMISSION ONHJUNE
SUBJECT:TO FINAL NEGOTIATION AND'APPROVAL BY
COMMISSION.
WHEREAS, the CitYof Miami took bids for the develOOMent:-Of:the-,CitY •
of Miami/University of Miami James L. Knight:International,Cente4 and
WHEREAS, the agreement entered into -aaa-:resUltof these
•
.competitive bids gave the developer, Miami Center Associates, Ltd.,
a right of first refusal for the development of the air rights
. •
over the site owned by the City for the development of the Center
garage; and
WHEREAS, the City Commission received by Motion 78-727
the development plan and feasibility study for a World Trade Center,
and
WHEREAS, Dade Federal Savings and Loan has offeredto
finance the construction of approximately 450,000 square feet of
office space, of which 300,000 square feet is to be used for a
World Trade Center, subject to receipt by the City of an urban
development action grant; and
WHEREAS, the City has applied for an urban development
action grant in the amount of $7.4 million; and
WHEREAS, the Department of Housing and Urban Development
requires certain basic information, including the terms of the
agreement between the City and Miami Center Associates, Ltd., for
the construction of a World Trade Center in order for them to
approve the urban development action grant;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The City Manager is hereby authorized to
draw up an agreement with the developer, Miami Center Associates,
Ltd., et al, to finance and develop the Miami World Trade Center
79-405
79-406
79-40.7
based upon commitments presented to the Commission on June
1979, subject to final negotiation -and approval by. the City
Commission.
PASSEDAND ADOPTED this day of
MAURICE A. FERRE, M A Y O R
RALPH G. ONGIE, CITY CLERK
PREPARED AND APPROVED BY:
I / '54(
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
-2-
CITY OF MIAMI. FLORIDA
To:
rr4c
Joseph P. Grassie
City Manager
im Con
Project Director
INTER•OFFICE MEMORANDUM
DATE:
MAY 3 0 1979
5U[3JtGT: Basic Terms -
World Trade Center Plan..
ntrCnENCES:
ENCLOEUn65t
FILEt
In negotiations with the private developer group consisting of Miami Center
Associates, Inc., Worsham Brothers Co., Inc., Turner Development Corporation,
Sefrius Corporation, Miami World Trade Center, Inc. and Dade Federal Savings
and Loan Association, a proposal has been developed with the private developers
subject to City Commission approval as follows:
1. The City will apply to the U.-S. Department of Housing and Urban Develop-
ment for a $7,473,400 Urban Development Action Grant to the City of Miami, the
proceeds of which are projected to be applied in accordance with the attachment
entitled Summary of Proposed Expenditures,. page 40, of the proposed grant appli-
cation.
2. Provided the grant is obtained, the private developer group agrees to
invest private funds in the approximate amount of $37,500,000 to build a World
Trade Center building consisting of approximately 450,000 sq. ft. of net rentable
area, of ;which Dade Federal Savings and Loan will occupy 150,000 sq. ft. and the.
Miami World Trade Center will. occupy 300,000 sq. ft.
This building, to be built on air rights over the City of Miami Conven-
tion Center parking garage, will pay full real estate taxes.
3. The private developergroup is prepared to pay the City of Miami an air
rights rental of $300,000 per year with appropriate escalation in accordance with
cost of living increases (Consumer Price Index) and actual rental increases obtained
by the World Trade Center portion of the building. The initial lease term will
be for 30 years with two renewal terms of 30 years each with provisions similar
to the provision of refurbishing and updating of the air rights structure as con-
tained in the lease and agreement with Miami Center Associates. The rental payments
are proposed as follows:
a. $150,000 per year beginning upon beneficial occupancy of the office
tower escalated annually by the change in the CPI.
b. $150,000 per year deriving from World Trade Center leasing activities
phased in as follows:
(1) $50,000 per annum upon achievement of 50% occupancy.
(2) $100000 per antrum upon achievement of 75% occupancy.
(3) $150,000 per annum upon achievement of 90% occupancy.
(4) The $150,000 shall be payable in any event after 5 years from
beneficial occupancy.
(5) The $150,000 per annum will escalate based upon the actual
percentage increase achieved on an annual basis after the World
Trade Center portion of the building has reached 90% occupancy.
4. The City's parking garage consultant, Conrad Associates, Inc. originally
recommended 750 parking spaces for the Convention Center and hotel. It is now
proposed, with the addition of the air rights, that an additional 450 spaces be
provided in this garage, thus making the garage 1200 spaces total. It is anticipated
that of the $7,473,400 UDAG grant, $2,710,000 will be allocated to these additional
450 parking spaces.
TheCitywill charge "market rates" for these 450 spaces and derive .the in-
come therefrom, which income is estimated to be $484,000 in the 5th year of operation.
Such income averages over the first 5 years $368,00 per year. As stated above, there
is no debt service on these funds and thus are available to the City.
5. The City does not subordinate its land or any of its investment to the air
rights structure.
6. In the event that the private developer group (Miami World Trade Center,Inc.)
determines that they no longer choose to operate as a World Trade Center, the City
would have right of first refusal tosucceed to the lease and the franchise for the
World Trade Center in order that the City may be assured of a continued public purpose
in this development.
7. One floor of approximately 15,000"sq. "ft. will be set aside for City of
Miami functions. The City will pay direct costs of construction and operating and
maintenance costs only during the lease term.
SUMMARY:
It is projected that the City will receive full real estate taxes on 'a
$37,500,000 private investment; over $400,000 per year in net income from parking;
and over $300,000 per annum from the rent of air rights.:
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1.
ci acc-Jisition ,
759,000
I ,112,000
1,871,000
......----
2.
St-zts : site tr.-• p:-/••J rents
50 000
L...
Sotpoo
' 100i000
3.
Rorkina facilities
—
, 507 ;650
7 , 217, 650
f.
foundations & platfom s
-27-710,0-00-
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1,728,000
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13
Pc.•dostrian malls
I -149•••1
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1 026 000
1,368;000.
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S. !Water
& ?....-s..!r. facilitiei.
20,09
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'5,000
' 25,000 ,
"t.
Clearance & .deololition
35 000
'119,907
' 154,907.„
S. IRe-,a1-.Ilitation
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•. Ca•i7mertial • -
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. Tr.d,:trial -•'••• • .
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e. Residential • •
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9 .
CC:71.St.:". 1 •f: n •
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. er-.77%!...el
1.0100.000
37,500.00
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38,500;000_
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. Industnial
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. Residential ,
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10.
Relocation::
50,000
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.
50,000
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Other; (l.i.s'f•.)
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e.-Roof-Garden ,-
250,000
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25,000
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b!
200,000
' -200,000
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Airport BU3 Terminal
c.Downtown People Mover
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250,000
' 250 000
7.---7-7-4.-7---46
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12.
Stdtiux:
Kdministzative costs
100,000,.-47
ii --a•-.,:.V.4.1-.A...t-...zzis-t...;•-,••,--,-,•----F--...-
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100000
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13.
5...:btotal CS= of lines 1
1....r-•-•..:c`-1 12)
6,794,000
37,500,001
3
7,520,557
51,814,557
' 14.
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Continotnnies (Not to
exceed 10= of line 13)
679,400
:-..z.•-n-o,-,-..-..:-..":.•-•-f,,F::::-.,:'2.:".?;-"L`S:::.;27-•.-t-tl..
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..--,::-.7- -r-,:. .....z. ,r:•-• .......:::::•:....±.11%-.. ....7.7z•
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: 679,400
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Procram income
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..........;,.747::.....,..c.:7 -1$, •-. ••••- . ,.."--.• •,......:•rl:
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16.
Total cost •
7,473,40437,500,04 , 1 . 520' 5571
52,493,957
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race 40.
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Word*a aka
fy77
SEFRIUS CORP.
MIAMI WORLD TRADE CENTER, INC.
TURNER DEVELOPMENT CORP.
(Joint and Co -Developers)
Mr. Joseph R. Grassie
City Manager
City of Miami
3500 Pan American Drive
Miami, Florida 33133
Re': World Trade Center
Dear Mr. Grassie:
-' May-29 1979
On behalf of the above consortium acting as Joint Developers we' hereby commit
to develop a World Trade Center in accordance with the attaaled plan being pre-
sented to City Commission. Our commitment is subject to the following terms
and conditions:
1. That the City approve the plan and enter into a Lease Agreement
with Dade Federal Savings & Loan Association who in turn enters
into a Sub -Lease Agreement for approximately 300,000 net rentable
sq. ft. of space to the above consortium upon terms and conditions
outlined in the plan attached herewith, and in such final legal
form acceptable to our counsel.
2. That the City build 1200 parking spaces in accordance with the plan
(we understand that approximately 800 of these spaces are committed
to the Hotel and Convention Center).
3. That the City obtain adequate and sufficient funds with which to
build their portion of the project from the Department of Housing
and Urban Development and through the issuance of their bonds, or
from other sources.
We believe this project, after careful analysis, to be economically feasible from
all parties standpoint, and are prepared to proceed immediately upon the execu-
tion of the appropriate documents.
We look fOrward_to participating with the City and this verylmportant,addition
to downtown Miami
ESW/mc
Sincerely,
Earl S. Worsham
f40/ roil Xtey• Ana, .4( Yid* e_ 2 • .44,14 CAV 47, OVQX:..97, • (4 0# .4.96? "9(.95e.
' • ,
es,
ID ade
ederal avings
AND LOAN ASSOCIATION OF MIAMI
MAIN OFFICE 101 EAST LAOLER STREET • MIAMI, FLORIDA 33131
Telephone • Dade County 579•2000 • Browatd County 587.2064
May 29, 1979
Mr. Joseph R. Grassie
City Manager
City Hall
City of Miami
Miarni, Florida
Re: Miami World Trade Center
•
Dear Mr. Grassie:
The following is our commitment for the development (financing) of the
World Trade Center upon the terms and conditions outlined below:
1. Pursuant to the conceptual approval of our Board of
Directors, Dade Federal will purchase a completed
building consisting of approximately 450,000 sq. ft. and
certain areas within the City of Miami Parking Garage to
be located at the intersection of S.E. SecondStreet and
S.E. First Avenue. The purchase price for the said
proposed building will be approximately $37.5 Million,
depending upon its final cost.
2. Attached herewith is an outline of a plan to be submitted
to City Commission for its approval; which plan will be
the principal subject matter of a Lease Agreement to be
entered into between Dade Federal Savings & Loan
Association, Miami World Trade Center, Inc., and the
Developer (Sefrius/Worsham Brothers/Turner Development
Corp.). The terms and conditions of this Lease in its final
formare subject to - our Board ofDirectors' and our
attorneys' approval and must be in conformity with all
rules and regulations applicable to Dade Federal Savings
& Loan Association.
3. Our commitment is further subject to the City providing a
1200 car parking garage as part of the overall structure,
which parking garage we understand will be owned by the
City.
I II 11111111111111111111111111111111111111
DADE FEDERAL SAVINGS AND LOAN ASSOCIATION OF MIAMI, MIAMI, FLORIDA
Mr. Joseph R. Grassie
-2-
May 29, 1979
Ourcommitment is further subject to the City obtaining
the necessary funds (approximately 17 million dollars) . to
be comprised of the proceeds from both theissuance and
sale of the City's proposed bond issue and the receipt by
the City of a grant from the U.S. Department of Housing
and Urban Development pursuant to an Urban
Development Action Grant that we understand the City is
pursuing.
We look forward to working with the City, the Developer, and as required
the U.S. Department of Housing and Urban Development and the successful
implementation of this important $54 Million program from the City of
Miami.
Sinclerely,
11
Ronald A. Lipton
President
RAL:og
Enclosure