HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARY FARM
FILE ID: 0 "3 - 0 J L
Date: 3/9/2007
Commission Meeting Date: 4/12/2007
Type: 1 Resolution
n Other
21.107 Mil 3 a lfl 3 39
Requesting Department: Public Facilities/Asset M ,nt.
District Impacted: 2
Ordinance n Emergency Ordinance n Discussion Item
Subject: First Amendment to Submerged Lands Easement Agreement between the City and Coral Reef
Yacht Club, dated May 5, 2006
Purpose of Item:
A Resolution of the City of Miami Commission, authorizing the City Manager to execute the First
Amendment to the Submerged Lands Easement Agreement, ("Amendment"), in substantially the
attached form, with Coral Reef Yacht Club ("CRYC"), a non-profit corporation, to provide for a one-
time contribution by the City in the amount of $114,000 towards the payment of annual fees to the
State of Florida by CRYC, in connection with the State's approval of an Easement Agreement which
provided for CRYC's continued use of certain City -owned submerged lands located waterward of
2484 South Bayshore Drive, Miami, Florida; said contribution shall be made in the form of a credit
against the $1,140,000 consideration due to the City from. CRYC in connection with the Easement
Agreement; providing for execution by CRYC of a waiver of any and all claims of ownership it may
have to the submerged lands pursuant to the Butler Act and an amendment of the Effective Date;
further authorizing the City Manager to execute all necessary documents in connection with the
Amendment; with terms and conditions as more particularly set forth in said Amendment.
Background Information:
See attached.
YES
YES
Budget Impact Analysis
Is this item related to revenue?
Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
Expenses to he credited against revenue. account
will be set up inpreparation for closing.
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
G.LP APPROVAL:
CIP
If using or recair
Grants
Purchasing
Chief
Final Approvals
LSMIABIIPAILI
Budge e
Risk Manag
Dept. Director
City Manager
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• Subject: First Amendment to Submerged Lands Easement Agreement between the City and Coral Reef
Yacht Club, dated May 5, 2006
Background Information:
The City and CRYC entered into an Easement Agreement ("Easement Agreement") dated May 5, 2006
pursuant to City Resolution No. 06-0218 adopted by the City Commission on April 6, 2006. The
Easement Agreement provided for CRYC's payment of $ l ,140,000.00 to be paid to the City for such
easement for the use of approximately 4.21 acres of City -owned submerged lands subject to approval by
the State of Florida Board of Trustees of the Internal Improvement Trust Fund ("State") due to a deed
restriction on the submerged lands. The terms of the Easement Agreement granted CRYC the use of
4.21 acres of city -owned submerged lands located waterward of 2484 South Bayshore Drive, Miami,
Florida to CRYC to facilitate CRYC's continued operation and reconstruction of a yacht club and
marina at said site.
The Easement provided that in the instance that the State required a fee or consideration for its approval,
that the City and CRYC would negotiate a mutually acceptable payment of the fees. On October 23,
2006, the State issued a letter finding that the easement is consistent with the 1958 Resolution of the
Trustees of the Internal Improvement Trust Fund and the previous waivers granted and that no further
approval was required.
One of the previous waivers provided for an annual payment to the State in accordance with Rule 18-
21.011 Fla. Administrative Code, which fee is increased annually based upon increases in the CPI. The
annual fee for 2006-07 was $7,728.98 and these fees have been paid by CRYC. During the easement
negotiations, City administration and CRYC agreed that in the event the State required payment in
connection with its approval of the Easement Agreement, that it would recommend to the City
Commission that the City contribute no more than 10% of the consideration to be paid by CRYC for the
easement, or $114,000, as the City's one-time contribution to the payment of the State annual fees. The
City's contribution will be made as credit against the consideration to be paid by CRYC to the City for
the easement. As the easement is in perpetuity, subject to certain termination events, and the easement
price is valued as if it was the fee simple value of the submerged land as opposed to an easement value,
we believe this one-time contribution is a fair and reasonable amount.
In addition, the Amendment includes provisions for CRYC to execute a waiver of any and all of its
Butler Act claims against the submerged lands as riparian owner of the uplands fronting the submerged
lands.
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