HomeMy WebLinkAboutSummary FormDate: 5/8/2008
AGENDA ITEM SUMMARY FORM
FILE ID: 0 b U 0 ,5 t E
CA.5
Requesting Department: Public Facilities / Asset Mgnt. Division
Commission Meeting Date: 06/12/2008 District Impacted: 2
Type: ® Resolution ❑ Ordinance
7 Other
Emergency Ordinance U Discussion Item
Subject: Land Lease between the City of Miami ("City") and the Federal Aviation Department (FAA)
for the use of a VORTAC Site at Virginia Key, Miami, Florida.
Purpose of Item:
A Resolution of the City of Miami Commission, authorizing the City Manager to execute a Land
Lease ("Lease"), in substantially the attached form, between the City of Miami ("Lessor") and the
United States of America, acting by and through the Department of Transportation Federal Aviation
Administration (FAA) ("Lessee"), a federal agency, to occupy approximately 1.3774 acres or 60,000
square feet on Virginia Key, Miami, Florida, ("Property"), for use as a Very High Frequency Omni-
directional Range and Tactical Air Navigational (VORTAC) facility, to provide for a term of one year
beginning October 1, 2008 to September 30, 2009, with automatic year-to-year renewals not to exceed,
nine years to September 30, 2018, unless Lessee gives thirty days notice to the City, with an annual
rent of $21,500 or $1,791.67 per month; with other terms and conditions more particularly set forth in
the Agreement.
Background Information: See attached
Budget Impact Analysis.
Yes Is this item related to revenue?
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:
CIP lv
1f using or receiving capital funds
Grants
Purchasing,
Chief
Final Approvals
jSIGN AND DATE)
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Risk Manage tL•
Dept. Director
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City Manager
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Subject: Land Lease between the City of Miami ("City") and the Federal Aviation Department
(FAA) for the use of a VORTAC Site at Virginia Key, Miami, Florida.
Background Information:
This Land Lease will extend the FAA's current use of its VORTAC antennae site on Virginia
Key for a term of one year beginning October 1, 2008 to September 30, 2009 with automatic year-to-
year renewals not to exceed nine years to September 30, 2018.
The City and FAA negotiated an annual rent of $21,500 which was based on the FAA's recent
appraisal which utilized federally mandated appraising techniques for similarly situated properties.
Federal agencies such as the FAA are required to go into leasehold condemnation proceedings if forced
to pay a greater amount than the threshold rent allowed by federal appraising guidelines. The negotiated
rent represents the maximum amount the FAA can pay under federal guidelines, based on a ten year
annualized amount derived from an appraised land value of $149,000 for the 60,000 square feet area in
question. Per the FAA, their mandated appraisal formula actually yielded an annual rent amount for
the first year at $15,000. However, the FAA will pay $21,500 for each of the ten years to account for
estimated inflation over the lease term.
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