HomeMy WebLinkAboutSummary FormAGENDA ITEM SUMMARYn�FORM
FILE ID: 0g"OO(OO2
RE.2
Date: May 16, 2008 Requesting Department: Public Facilities/Asset Mgmt.
Commission Meeting Date: June 12, 2008 District Impacted: 2
Type: ® Resolution Ordinance Emergency Ordinance n Discussion Item
Other
Subject: Third Amendment to the Agreement To Enter Into Ground Lease between Flagstone and the
City.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, authorizing the City Manager to
execute the Third Amendment, in substantially the attached form, to the Agreement To Enter Into
Ground Lease ("Agreement to Enter") between the City of Miami ("City") and Flagstone Island
Gardens, LLC ("Flagstone"), to provide for: (1) an extension to the Lease Deadline referred to in
Section 6.2.1 of the Agreement to Enter to February 1, 2010; (2) an extension to the Outside Date
referred to in Section 6.2.3 of the Agreement to Enter to February 1, 2010; (3) providing that
Flagstone may meet any and all of the referenced conditions precedent on a component by component
basis; (4) Flagstone shall pay to the City in consideration for use ("Consideration for Use") the sum of
two hundred thousand dollars ($200,000) payable in equal monthly installments of $16,666.66 for use
of the property, and commencing on the first day following July 31, 2009 and ending on the day
preceding the Possession Date Flagstone shall pay to the City seventy five thousand dollars ($75,000)
for each month exercised as part of the extension period granted Consideration for Use; and (5)
establishment of certain milestones in the timelines for development matters.
Background Information:
Purpose of Item:
See Supplemental Sheet
Budget Impact Analysis
YES Is this item related to revenue?(l pl . i to` o. +KCVO. coa7• COCOOP
NO Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
(SIGN AND DATE)
CIP NIA Budget tft ,': a S1i91o�
Grants N/A Risk Management 5/ ?f
If using or receiving capital fiords i A
Purchasi /A Dept. Director
Chief j'1 �-.� City Manager
Page 1of2
SUPPLEMENTAL SHEET
Subject: Third Amendment to the Agreement To Enter Into Ground Lease between Flagstone and the
City.
Background Information:
The City and Flagstone entered into an Agreement to Enter into a Ground Lease (the "Agreement to
Enter") on January 1, 2003 consistent with all material aspects of the Watson Island RFP and the Island
Gardens Proposal and setting forth the conditions for the future execution of a long-term ground lease
("Lease") with Flagstone Island Gardens.
The conditions provided in the Agreement to Enter set forth the Outside Date as January 1, 2007.
Although Flagstone has been diligently pursuing all required permits and approvals, the 14-month
duration delay experienced with defending against several lawsuits as well as the 28-month process to
obtain all the required environmental permits made the Outside Date unachievable and requiring
modifications to the Agreement to Enter. The City and Flagstone entered into the Second Amendment
amending the Outside Date of the Agreement to Enter to August 1, 2008.
Due to the downturn in the real estate industry the financing of the project has caused unexpected delays
which require an additional eighteen (18) month extension to the Outside Date of the Agreement to
Enter. In consideration for the extension of the Outside Date and continued encumbrance of the
property for the Flagstone development, Flagstone shall pay to the City in consideration of use
("Consideration for Use") the sum of two hundred thousand dollars ($200,000) payable in equal
monthly installments of $16,666.66 for use of the property and commencing on the first day following
July 31, 2009 and ending on the day preceding the Possession Date Flagstone shall pay to the City
seventy five thousand dollars ($75,000) for each month exercised as part of the extension period granted
Consideration for Use. The Amendment also establishes certain milestones in the timelines that
Flagstone will be required to meet as part of the conditions precedent from the Agreement to Enter.
Paop'7 of