HomeMy WebLinkAboutSummary FormTUN-27--200?
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Date: rune 4, 2007
15:34 CITY MANAGERS OFFICE
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305 416 1019 P.03
Requesting Department: Public Facilities (Asset Mgent.)
Commission Meeting Date: July 10, 2007 District Impacted: 2
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Authorizing issuance of 1FB for sale of City -owned property located at approximately
100 SE 2 Street, Miami, Florida
Purpose of Item:
A resolution of the Miami City Commission declaring surplus and authoring the issuance of an Invitation For
Bid (IFB), in substantially the attached form, for the sale of the City -owned real property located at
approximately 100 SE 2 Street, Miami, Florida, which property includes the fec simple purchase of the parking
garage and the City's interest as landlord under the Retail Lease and Office Lease; establishing S49,000,000 as
the minimum bid price; Anther authorizing the City Manager to: (i) employ such procedures as may be required
by the City Charter or Code for purposes of disposing of the property; (ii) accept responsive and responsible
bids; (iii) negotiate a purchase and sale agreement; and (iv) present the negotiated agreement to the City
Commission for final approval.
Background Information:
Budgtr,tttgaet Malvsb
NO 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 Bondi?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP14
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Purchasin
Chief
Final Approval%
[SIGN AN F1
Budget
Risk Management
Dept, Direeta
City Manager
Prime 1 of 3
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Subject: Authorizing issuance of IFB for sale of City -owned property located at approximately
100 SE 2 Street, Miami, Florida
Background Information:
On September 12, 2006, following a competitive process, the City Commission authorized execution of
an agreement with the Staubach Company, Northeast, Inc. ("Staubach) to provide real estate and
financial advisory services in connection with the possible disposition of the James L. Knight Center
complex (the "Property"). Staubach completed the analysis portion of phase I of its scope of work and
developed five scenarios upon which the City can proceed, which scenarios were presented to the City
Commission.
Staubach has determined that the City can maximize value and redevelopment opportunities for the
Property by dividing the property into the "North Side" assets (north of I-95 ramp) and "South Side"
assets (south of I-95 ramp).
Following consideration of Staubach's recommendations, on May 10, 2007 the City Commission
authorized the preparation of an Invitation For Bid (IFB) for the sale of the North Side assets.
Highlights of the IFB are as follows:
Property:
Approximately 100 SE 2 Street, which property includes the fee simple purchase
of the Parking Garage and the City's interest as landlord in the Retail Lease and
Office Lease.
The Retail Lease is comprised of the retail air rights lease above the garage,
currently master leased to Blue Capital US East Coast Properties, LP, the owner
of the 685,000 square foot (office), 38,000 square foot (retail), 46-story Bank of
America Tower (the "Retail Lease").
The Office Lease is comprise of the office air rights lease, currently master leased
to Blue Capital US East Coast Properties, LP, under which Blue Capital US East
Coast Properties, LP owns and operates the Bank of America office tower (the
"Office Lease").
Property Size: Approximately 1.43 acres
Conditions: The sale is subject to all leases and other restrictions of record that are in place.
Knight Center
Parking: The IFB will require the buyer to enter into an agreement with the City to
continue to provide parking for the Knight Center at rates comparable to that
which are charged by the Miami Parking Authority for special events in the
downtown area. This agreement shall expire upon the earlier of: (i) 2070; or (ii)
the Knight Center is redeveloped with parking provided on -site.
Minimum Bid Price: $49,000,000
Pave of
Pagc; 3
Subject: Authorizing issuance of IFB for sale of City -owned property located at approximately
100 SE 2 Street, Miami, Florida
"Step Auction":
Prospective buyers shall submit their bid by the final submittal date to be
specified in the IFB. The highest ranked qualified bid will be posted on the City's
website within 2 weeks of the final submittal date. All listed participants will be
notified via email that the bid has been posted. Following posting of this highest
qualified bid, any listed participant will have 10 business days to submit an
additional bid ("Additional Bid Round") to the City that must be a minimum of
10% higher than the posted highest qualified bid. In the event no additional bids
are submitted to the City within this time period, the City will notify the listed
participants that the bid process is closed and that the City is entering into
negotiations with the highest qualified bidder. In the event that additional
qualified bids are received, the City will repeat the Additional Bid Round, with
the subsequent additional bid being posted on the City's website and listed
participants having the opportunity to again submit an additional bid at least 10%
over the then posted highest qualified bid. The City will not identify the name of
the highest qualified bidder during this process. This process will continue until
there are no additional qualified bids submitted in any subsequent Additional Bid
Round.
In the event of a "tie" between highest qualified bids following the first round of
additional bidding (or at the end of any subsequent Additional Bid Round), the
City will request that the tied bidders submit "Best and Final Offers" within 5
business days of notification, with a minimum $1M in incremental bid required.
This process will be repeated until there is a clear highest qualified bid, at the
discretion and sole judgment of the City.
Trustee Approval: Pursuant to the Trust Indenture for the Property, the sale of the Property shall be
subject to the trustee's approval.
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