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HomeMy WebLinkAboutDraft Agenda ItemDRAFT AGENDA ITEM REQUEST: Consideration of the following for lands lying within SB 640 and BOT deeds # 19447, 19448, 18030, 18450: (1) Acceptance of the title of Brickell Place I and II from the City of Miami; (2) An amendment to Board of Trustees' deeds specifically allowing for open to the public, "first come, first served" facilities run by private entities, the City of Miami, and/or governmental entities (3) A determination that Biscayne Bay Restaurant (Rusty Pelican), Rickenbacker Marina, and Coconut Grove Sailing Club are open to the public, "first come, first served" facilities that are consistent with the purposes of the deeds as modified herein; (4) Waiver of the right to any fees that may be due on any leases or licenses that did not have a waiver of deed restriction in place at the time this deed modification is approved; (5) Acknowledgement that no fees are due to the State for leases or agreements, or extensions thereto, that are found in compliance with the deed restrictions as modified herein. COUNTY: Miami -Dade BOT Application No.: APPLICANT: City of Miami (City) Department of Public Facilities Asset Management Division 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 LOCATION: Sections 21-23, 26, 27 and 35, Township 54 South, Range 41 East, Sections 7-8 and 16-20, Township 54 South, Range 42 East, in Biscayne Bay, Class III Waters, within the local jurisdiction of the City of Miami Aquatic Preserve: Biscayne Bay Manatee Area slow speed zone: Yes Outstanding Florida Waters: Yes CONSIDERATION: The City has entered into certain agreements wherein it collected revenue from various water -dependent uses and support services within the subject deed areas. The City collected revenues in the approximate amount of $11,842,607 from those agreements which did not provide for a separate fee to the State. However, the City has supported waterfront projects well in excess of any revenues collected. To date, the City has invested at least $15,624,300 in waterfront projects which are open to the public and provide access to the water for the general public, such as the construction of boat ramps, public marinas, mooring fields, and other working waterfront type activities (see Exhibit A). Prospectively, the City has made the following commitments to reinvest in the waterfront: (a) Pursuant to Ordinance No. 12937, the City has committed to the allocation of 10% of its annual gross dockage monies received each fiscal year for the funding of necessary capital repairs and capital related improvements to city marinas and mooring facilities. (b) For the lands lying within SB 640 and BOT deeds # 19447, 19448, 18030, 18450 which are not covered by previous waivers, the City has agreed to allocate for maintenance and improvement of waterfront properties, 15% of all revenues received from new leases with private entities within these deeded areas. In addition, the City has agreed to quit claim the land in the area of Brickell Place Phases I and II condominium, which are not open to the public facilities, back to state ownership in consideration for a modification of the above referenced deeds. Currently, the docking facilities associated with Brickell Place Phases I and II were severely damaged by hurricanes in 2005 and have been deemed unsafe for use. The condominiums will be required to apply for a lease from the Board of Trustees prior to rebuilding docking facilities on the adjacent submerged land. Since the City (1) has invested more in waterfront projects thanrevenue received as of this date; (2) will relinquish its interest in the area of Brickell Place Phases I and II; and (3) committed to the reinvestment of revenues in the maintenance and improvement of waterfront properties as set forth above, the City is requesting that the BOT waive the right to any fees that may be due on any leases or licenses that did not have a waiver of deed restriction in place at the time this deed modification is approved. Therefore, no consideration will be due to the State for any leases or agreements, or extensions thereto, which are prospectively found in compliance with the deed restrictions as modified herein. Notwithstanding the foregoing, fees due to the State from existing waivers shall continue to be due and payable in accordance with the terms of the existing waivers. STAFF REMARKS: There are five (5) deeds, all pertaining to property located in the Biscayne Bay Aquatic Preserve, which are the subject of this request: Deed Date Issued Current restriction 18030 July 23, 1929 "municipal purposes only" 18450 July 8, 1938 "municipal purposes only" SB 640 1935 "municipal purposes only" 19447 February 24, 1949 "never sell or convey or lease the land or any part thereof to any private person, firm or corporation for any private use or purpose, it being the intention of this restriction that the said lands shall be used solely for public purposes, including municipal purposes and not otherwise." "not give or grant any license or permit to any private person, firm or corporation to construct or make by any means, any islands, fills, embankments, structures, buildings or other similar things within or upon the ...lands for any private use or purpose, as distinguished from any public or municipal use or purpose." 19448 February 24, 1949 Same as Deed 19447 Staff is of the opinion that allowing uses on the lands lying within SB 640 and BOT deeds # 19447, 19448, 18030, and 18450, managed by private entities, the City of Miami, and/or other governmental entities which are "first come, first served" is in the public interest because it will result in the following benefits beyond what could be accomplished solely by municipal efforts, through cooperative efforts with local business entities: (1) continued and improved public access to Biscayne Bay; (2) continued marine waterfront recreational and visitation opportunities for the general public; (3) revitalization of upland properties and facilities that are open to the public; and (4) additional recreational and marine related business opportunities and taxes. The quit claim of Brickell Place Phases I and II and the modification to allow facilities which are first come, first served, but managed by private entities, the City of Miami, and/or other governmental entities will provide improved public land management. The City is committed to maintaining public access and master planning its waterfront in order to continue to provide waterfront facilities which are first come, first served. The waterfront master plans will improve, maintain and increase waterfront access and public waterway safety activities throughout the City through enhanced public baywalks, new mooring fields, and additional public open spaces. The City has also committed to reinvesting marina revenues in waterfront repairs and improvements. Pursuant to Ordinance No. 12937, attached as Exhibit C, the City has committed to the allocation of 10% of its annual gross dockage monies received each fiscal year for the funding of necessary capital repairs and capital related improvements to city marinas and mooring facilities and for the provision of matching funds for grant opportunities. In addition, in conjunction with this request, the City has committed to allocate for maintenance and improvement of waterfront properties, 15% of all revenues received from new leases with private entities within the deed restricted areas. This commitment of funds will provide benefits which are in the public interest, including improvements which will improve and enhance the public health, safety, welfare, law enforcement, and public navigation. Pursuant to the City's Resolution requesting these deed modifications, the City will ensure that all leases or other conveyances within the boundaries of these deeds provide facilities and services that are open to the public, "first come, first served." For all new leases from the City of Miami to private entities for the management of the facilities on the areas covered by SB 640 and BOT deeds 19447, 19448, 18030, and 18450, the City will provide written notice to the Department at least 30 days in advance of the proposed execution of the lease. The Department shall have 15 days from the date of receipt to notify the City of Miami in writing that the proposed use is not in conformance with the requirement that the uses are "first come, first served," as that term is defined in Florida Administrative Code Section 18-21.003(23). If no written notification is received by the City of Miami as set forth above, such use shall be deemed in conformance with the deed restrictions. This notice procedure provides reasonable assurances that all uses of these lands will be consistent with the requested modification, allowing for "first come, first served" facilities and services managed by private entities and/or the City. Previous Waivers On several past occasions the City has requested and received waivers of the above deed restrictions. All facilities that received the waiver were identified as public facilities operated by private entities and/or the City. The State is currently receiving revenues pursuant to the terms and conditions of the individual waivers. The previously approved waivers are as follows: Name of Private Entity Deed Permitted Use Date of Waiver Date of Waiver Expiration* Original Consideration for Waiver Bayside Center Limited Partnership 19447 Retail/ entertainment Oct 21, 1985 Dec 1, 2060 Set aside 7.4% of rents paid to the City annually for the purpose of acquiring real property adjacent to the Miami River or Biscayne Bay Bayshore Landing LLC (current assignee) 19448 Restaurant/ dock slips Dec 12, 1983, as amended Aug 10, 2004 May 31, 2035 $120,850 one time payment, and $.0915 per sq ft. or 6% of gross revenues Biscayne Bay Yacht Club 19448 Docking facilities Trustee Resolution adopted Dec 18, 1958, as amended Feb 18, 1963 and Oct 2, 1969 In perpetuity, subject to certain conditions None Coral Reef Yacht Club 19448 Docking facilities Trustee Resolution adopted Dec 18, 1958, as amended Feb 22, 1968 and Dec 12, 1983 In perpetuity, subject to certain conditions $0.045 per sq. ft. Parrot Jungle 19447 Botanical Gardens and Entertainment Aug 18, 1997 Sep 30, 2060 .64% of ticket sales + .225% of gross restaurant revenue + .3% of retail and concession revenues Grove Harbour Marina & Caribbean Marketplace 19448 Marina, boatyard, fueling, marketplace, subleasing July 25, 2000 Dec 3, 2042 $19,000 per year or 6% of gross revenues Flagstone Island Gardens 19447 Mega yacht, marina, hotels, retail and parking Jun 24, 2004 75 yrs from lease commencement $300,000 or 15% of gross revenue from lease * Waivers granted for leases run consistent with the lease term. The date reflected herein includes any options that may be exercised by the lessee. Uses previously found in compliance Pursuant to certifications issued by the Division of State Lands, the following uses have been previously determined to be consistent with the deed restrictions in Deed 19447. Name of Private Entity Date of Certification Lease Term Deed Use Miami Yacht Club, Inc. March 23, 1993 March 31, 2026 19447 Marina/ boat storage/ restaurant Miami Outboard Club, Inc. March 23, 1993 March 31, 2026 19447 Marina/ boat storage/ restaurant Miami Sports & Exhibition Authority Aviation Center February 24, 1998 August 13, 2062 19447 Aviation Miami Sports & Exhibition Authority - Miami Children's Museum December 12, 2000 February 27, 2072 19447 Museum The Division of State Lands found the aforementioned uses in conformance with the public purpose deed restriction because "boating clubs provide recreational programs and services to the public, are non-profit organizations, and are open to public membership. " Therefore, these uses were found in compliance with the deed restriction in Deed 19447, which requires that the land be "used solely for public purposes, including municipal purposes and not otherwise." Facilities Open to the Public The City has lease agreements with three (3) other sites that are "first come, first served" facilities run by private entities, but which have not received individual waivers as of this date.' The facilities are within similarly restricted Trustees conveyances to the City, but are utilized in a manner similar to those sites which have already received waivers or have otherwise been found in compliance with the deed restrictions. The leases for the facilities which are first come, first served are as follows: Name of Private Entity Lease Term Deed Permitted Use Biscayne Bay Restaurant (d/b/a Rusty Pelican) Oct 1, 2012 18030 Restaurant Rickenbacker Marina Jan, 2009 18450 Marina & ancillary restaurant The City also has license agreements with private entities, but which do not convey any interest in the real property. The City is requesting that the Deeds be amended to specifically allow for leases to facilities that are open to the public, "first come, first served," but are to be managed by private entities, the City of Miami, and/or other governmental entities. This modification would ensure public access to the waterfront, allow for the provision of waterfront related services and activities such as boat docking, sailing lessons, boat servicing, and ancillary facilities, retail and restaurants. Any revocable license agreement or management agreement to provide services on behalf of the City is not a conveyance in interest in property and shall be deemed a public purpose and in compliance with the deed restriction. However, all uses, including those authorized through revocable license agreements, are subject to state and local permitting requirements. Staff is of the opinion that the above uses when operated on a "first come, first served" basis are compliant with Florida Administrative Code Section 18-21.003(23). This proposed modification to allow for uses that are "first come, first served" will clarify the scope of municipal and public purposes. By way of example but not limitation, the City will be deemed to be in compliance with the deed restriction, without further approval required by the Trustees, when entering into a long term lease agreement with a private entity to operate a marina, retail, restaurant or boat repair shop, and ancillary facilities, and when such use operated by the private entity is first come, first served. This will maintain public access to the waterfront, and provide facilities and services in cooperation with local businesses beyond those that could be provided through municipal services alone. Coconut Grove Sailing Club With respect to the Coconut Grove Sailing Club ("CGSC"), the CGSC has been occupying the property since 1946 and operates a facility for sailing and marine education activities. The property was originally conveyed to the City of Miami by SB 640. The CGSC provides many programs to the general public for the purpose of promoting sailing, which programs include providing sailing classes, racing education programs, community service sailing programs and free sailing classes. These programs are open to the public, first come, first served and do not require membership to participate. The City believes that the CGSC serves an important role in providing a sense of community and enhanced quality of life. The numerous community programs it sponsors with the help of its volunteers help to ensure water access to the general public and provide programming that the City itself could not provide. The CGSC is a non-profit organization that currently has approximately 1000 members, and accepts members on a non-discriminatory basis. The CGSC has complied with all laws governing non-profit organizations, and utilizes the membership fees for staff and security, utilities, lease fees, insurance, fuel, publications, and educational programs. All fees are allocated for the maintenance of the facility, which may be utilized by members and non-members. The Coconut Grove Sailing Clubs use and services are consistent with the uses previously found in compliance with the deed restrictions, because "boating clubs provide recreational programs and services to the public, are non-profit organizations, and are open to public membership." The CGSC is non-profit, provides educational programs for youth and adults, and are open to membership for the general public. While membership entitles a family to vote on club issues and lease a slip, the facilities and services are also open to non-members. The CGSC's lease with the City has expired and they are currently occupying the property as a tenant -at -will. The City has not renewed the lease because the City is currently undertaking a master plan of the Dinner Key area which will define the future uses of the area. Therefore, the Coconut Grove Sailing Club shall be allowed to continue to operate in its current manner either as a tenant -at -will or pursuant to an extension of its previous agreement until such time as the City enters into a new agreement, with the CGSC for its continued use of the area. At such time, any use by the Coconut Grove Sailing Club or any future lessee of any areas encumbered by the deed restriction must comply with the deed restriction as modified herein. (See Attachment , Pages 1 ) RECOMMEND APPROVAL OF THE FOLLOWING: (1) ACCEPTANCE OF TITLE OF BRICKELL PLACE I AND II FROM THE CITY OF MIAMI; (2)AMENDMENTS TO BOARD OF TRUSTEES' DEEDS TO SB 640 AND BOT DEEDS #19447, 19448, 18030, 18450 TO ALLOW FOR "FIRST COME, FIRST SERVED" FACILITIES RUN BY PRIVATE ENTITIES, THE CITY OF MIAMI, AND/OR OTHER GOVERNMENTAL ENTITIES; (3)FINDING OF COMPLIANCE WITH DEED RESTRICTIONS, AS MODIFIED HEREIN, FOR BISCAYNE BAY RESTAURANT (RUSTY PELICAN), RICKENBACKER MARINA, AND COCONUT GROVE SAILING CLUB; (4) WAIVER OF THE RIGHT TO ANY FEES THAT MAY BE DUE ON ANY LEASES OR LICENSES THAT DID NOT HAVE A WAIVER OF DEED RESTRICTION IN PLACE AT THE TIME THIS DEED MODIFICATION IS APPROVED; (5) ACKNOWLEDGMENT THAT NO FEES ARE DUE TO THE STATE FOR LEASES OR AGREEMENTS, OR EXTENSIONS THERETO, THAT ARE FOUND IN COMPLIANCE WITH THE DEED RESTRICTIONS AS MODIFIED HEREIN.