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HomeMy WebLinkAboutSubmittal-Samuel Dubbin-Correspondence and AppraisalWe at the Sierra Club Miami Group are concerned that the City of Miami is holding a vote on Thursday regarding the sale of a lease to develop Watson Island as a resort and marina. This is known as the Flagstone Islands Gardens Project. This is public land, originally submerged land, that was given to the city by the state for use as public land such as a park, and needs state approval. It could set a precedent in terms of state lands being developed for private gain. We are concerned that insufficient time for public input on this issue was provided. Sincerely. ,es Professor R. Stephen Mahoney Sierra Club Miami Group Conservation Chair rstephenmahoney@gmail.com ILI -OOq�O ILL (jc)L 3I SUBMITTED JNTO THE 'U3LIS RECORD FOR lrFMQE' ONs-s-20/4, . > SC mve.l Cutrexpunkr\ce_ 0r.d ppm\sal SUBMITTED 1NTO THE PUE3L!C RECORD FOR From: Heiser, Gary ��� (7 Sent: Monday, April 14, 2014 11:04 AM ITE'' ON ,r,j To: Sawyer, Thomas Cc: Reardon, Bevin Subject: FW: Watson Island Attachments: Flagstone Settlement Status 04-11-14.pdf; Greenwich Ltr 04-11-14.pdf; Economic Impact Study 3-14.pdf with regard to no.4, as you know a document does not have to be recorded to be valid or effective. the Notice of Termination was sent to Flagstone and thus Flagstone had notice . More importantly, DEP was under no legal or contractual obligation to provide Flagstone with the Notice of Termination because the Amended and Restated Modification of Deed Restrictions automatically terminated based on Flagstone failing to satisfy all judgments by the date specified in the Amended and Restated Partial Modification of deed restrictions and the cure provisions did not apply to this default. Therefore, DEP does not have the authority to administratively reinstate the Amended and Restated partial Modification of Deed Restrictions. From: Nathalie Goulet[mailto:ngoulet@flagstonegroup.com] Sent: Sunday, April 13, 2014 5:19 PM To: Bravo, Alice; Sawyer, Thomas Cc: Torre, Henry; Woolam, Scott; Campanile, Nick; Fenton, Katy; Heiser, Gary; Leopold, Matt Subject: RE: Watson Island Dear Tom, It was likewise a pleasure meeting you at our March 26, 2014 meeting. Flagstone has been working diligently in providing you with responses to your requests as per our meeting of March 26, 2014 and your email of April 4, 2014. In working towards a prompt resolution of the matter, please note the following: 1. As of April 11, 2014, Flagstone has deposited the total outstanding balance due under the settlement agreements into an Escrow account with Shutts & Bowen LLP, with directives for the funds to be disbursed directly to the payees under the settlement agreements for the total outstanding balance due each such payee simultaneously with recording of Satisfactions of Judgment, upon written confirmation from the DEP that the Amended and Restated Partial Modification of Deed Restrictions continues to be in full force in effect. I will provide you with the Escrow Letter from Shutts & Bowen LLP upon receipt of same tomorrow. Attached, for your reference, is the current payment plan under the settlement agreements and the current outstanding balances as of April 11, 2014 (which include the March, 2014 payments; the last summary sent to Ms. Katy Fenton did not include the March, 2014 payments). 2. Attached, please find a letter from Flagstone's financial advisor, The Greenwich Group International, disclosing the partner under current LOI with Flagstone. 3. Also attached, please find a copy of our economic impact study previously sent to Ms. Katy Fenton, Mr. Matthew Leopold and Mr. David Clark. t Fr, -2A On page 1 of the study, you will see that during the project's first 3 years of operation, the State is projected to receive more than $98.1 Million in sales tax revenue, and $36 Million annually in sales tax revenue beginning on the fourth year of operation of the project. On page 2 of the study, you will also see that during construction of the project, the State is projected to realize more than $20 Million in sales tax revenue, based on the purchase of construction materials, fixtures, furniture, equipment, operating supplies and information technology. Also on page 2 of the study, you can see the revenues to the State from the ground lease payments: Approximately $1.38 Million during the construction period and through the project's first 3 years of operation and $556,000 annually beginning in the fourth year of operation. On page 3 and as summarized on Table 2 on page 7 of the study, you can see the jobs created from the development and operation of the project: 9,987 non -recurring (direct and indirect) and 2,930 annual recurring (direct and indirect). We believe that strong consideration should be given to the aforementioned revenues and jobs that will be created as a result of this project. If this project does not commence by June 2, 2014, the State will see a delay in the above -cited sales tax revenue by a minimum of 3 years. Obviously, the creation of the 2,930 annual recurring jobs and 9,987 non- recurring jobs will be delayed as well. 4. With regard to the administrative relief discussed at our March 26, 2014 meeting, it is Flagstone's and the City's firm stance that such is vested within the authority and powers of the DEP; based upon the premise that, in order to modify any document already of record, a new document modifying the document already of record, must be recorded. Since there are no documents of record modifying the Amended and Restated Partial Modification of Deed Restrictions and since the DEP notified Flagstone of the termination of the Amended and Restated Partial Modification of Deed Restrictions via the administrative June 4, 2012 letter, the DEP shall have the same authority and power to retract and/or supersede such letter via a new letter affirming the enforcement of the recorded Amended and Restated Partial Modification of Deed Restrictions. Alice and I would like to schedule a conference call with you, at your earliest convenience, to discuss each of the above items in more detail. Please, let us know your earliest availability. Thank you for your attention in the instant matter. We are looking forward to moving forward with you in resolving the instant matter so that we can move forward with commencement of construction this June, 2014. Very truly yours, Nathalie H. Goulet, Esq. General Counsel to Flagstone Property Group LLC 888 MacArthur Causeway Miami, Florida Direct Tel. (305)206-8761 Fax (305)531-3748 From: Bravo, Alice [abravo@miamigov.com] Sent: Thursday, April 10, 2014 6:36 PM To: Sawyer, Thomas Cc: Torre, Henry; Nathalie Goulet; Woolam, Scott; Campanile, Nick; Fenton, Katy; Heiser, Gary; Leopold, Matt Subject: Re: Watson Island Good afternoon Tom, 2 Submitted into the public record in connection with <E.o item QEI I on 5/8f 14 City Clerk I apologize for the delay in responding to you. However, we have been working on the resolution to the items below. To answer your question, I believe your email cc's do include all attendees of the meeting. Ms Goulet will be forwarding favorable information to you tomorrow regarding the items below. Would you be available for a brief phone call tomorrow afternoon regarding the research on Item #2? Once again, we would like to thank all of you for your support of this project which has numerous beneficial aspects. Thanks, Alice Alice N. Bravo, P.E. Deputy City Manager City of Miami Cell: 305-458-7541 Sent from my iPhone On Apr 4, 2014, at 6:05 PM, "Sawyer, Thomas" <Thomas.Sawyer@dep.state.fl.us> wrote: Hi Alice —1 hope you are well and want to take the opportunity to say it was a pleasure meeting you on March 26, 2014. After the our meeting on March 26, I reviewed your post -meeting e-mail (below) and feel the need to clarify that the debate surrounding Chapter 6451, Laws of Florida 1913 versus Chapter 8305, Laws of Florida 1919, was not the "go forward" question that was sought to be addressed after our meeting; rather, the Division of State Lands would like to have the City of Miami, in concert with Flagstone, address the following: 1. There appear to be certain judgments that remain unsatisfied notwithstanding the January 17, 2012 deadline set forth in the Amended and Restated Partial Modification of Restrictions (the "Private Use Modification"), to wit: Americas Media Group Worldwide, LLC ($127,609.40), Totem Communications Group, Inc., f/k/a Redwood Custom Communications, Inc. ($40,862.20) and Pandiscio, Inc. ($61,594.10). Please let us know when those judgments will be satisfied of record so that one of the monetary defaults in the Private Use Modification can be taken into consideration; 2. Notwithstanding the fact that the monetary default referenced above triggered an automatic and immediate termination of the Private Use Modification, you were going to have legal counsel provide our Office of General Counsel a basis for an "administrative cure" (keeping in mind the clear language in the Private Use Modification that the cure rights in paragraph 5 of that agreement did not apply to this time specific monetary default). 3. A disclosure of the restructured internal ownership of Flagstone has also been requested. My thought is that something similar to a Section 286.23, Florida Statutes, disclosure affidavit would be ideal in this regard. Finally, I want to confirm that, aside from the two of us, the attendees of the March 26 meeting are all copied on this e-mail, to wit: Henry Torre, Nathalie Goulet, Scott Woolam, Nick Campanile, Katy Fenton, Gary Heiser and Matt Leopold. 3 Submitted into the public record in connection with item f., o I pf., � on b. I City Clerk Again, it was a pleasure meeting you on March 26, and I look forward to working with you in the future. Have a great weekend. From: Bravo, Alice [mailto:abravo@miamigov.com] Sent: Wednesday, March 26, 2014 5:36 PM To: Leopold, Matt; Sawyer, Thomas; Fenton, Katy Cc: Diaz, Veronica; Torre, Henry Subject: Watson Island Importance: High Good Afternoon, First and foremost, I would like to thank you and the others that attended the meeting this morning, for your time and consideration on this matter. Below I have included the first email I received last year regarding the 1919 Special Legislative Act (SLA). The conference call took place on June 12, 2013 (please see the attached email I received in advance of the phone conference with the 1919 SLA language itself). Veronica Diaz, Assistant City Attorney was the other City representative on the call with me. Most of the FDEP personnel cc'd on the email below participated on the call. During the call, l was informed that FDEP had acknowledged the validity of the 1919 SLA and therefore the next Deed Waiver for Flagstone to be requested from the TIITF would make reference to the 1919 SLA in lieu of the 19447 Deed. 1 then questioned the need for a waiver since the only restriction referenced in the 1919 SLA referred to "Municipal Purpose" only. We were coordinating further discussions regarding the need for a waiver when Related Group dropped out of the project. As discussed this morning, the issue above can be discussed in the future as we hopefully develop a Tong -term global solution. In the short term, we look forward to working with you on bringing the Flagstone issue to resolution. Please feel free to call me on my cell 305-458-7541 (cell) should you require any additional information. Thanks, Alice N. Bravo, P.E. Deputy City Manager - Chief of Infrastructure City of Miami Miami Riverside Center 444 S.W. 2nd Avenue - 10th Floor Miami, FL 33130 Office: 305-416-1091 Fax: 305-416-1019 Email: abravo@miamigov.com From: Leftheris, James [mailto:James. LeftherisCaldeo.state.fl.us] Sent: Friday, June 07, 2013 11:31 AM To: Bravo, Alice Cc: Campanile, Nick; Leeds, Stephanie; Heiser, Gary; Karter, Marjorie; Reardon, Bevin Subject: Conference CaII Importance: High Alice, 4 Submitted into the public record in connection with P +a item .+r on 541(9 City Clerk We would like to schedule a conference call next week with the City to discuss the 1919 Special Legislative Act (Chapter 8305, Laws of Florida). Below are some dates and times our staff are available. Please let us know if any of these dates and times will work for you and your staff. If not, please let us know and we can look at some alternative dates and times. June 12, 2013 - 10:00 a.m. to 11:00 a.m. June 13, 2013 - 2:00 p.m. to 3:00 p.m. Thanks and please call me if you should have any questions. Jim Leftheris Division of State Lands (850) 245-2555 Please take a few minutes to share your comments on the service you received from the department by clicking on this link DEP Customer Survey. Submitted into the public record in connection with 5 iterra'jj on 5/J/9 City Clerk Flagstone Satisfactions of Judgment and Settlement Agreements Status as of 04/11/2014 1. Beach Tower LLC Judgment: $263,203.95 Judgment Satisfied March 1, 2012 Attorneys and/or representatives of Beach Tower LLCwere unavailable and/or non-existent to respond to Flagstone requests to satisfy judgment prior to February, 2012 2. Miller Leaa & Associates. Inc. Judgment: $3,989.19 Judgment Satisfied August 29, 2011 3. Lilian Ser Judgment: $674,000.00 Judgment Satisfied October 13, 2011 4. StephenJames Associates, Inc. Judgment: $33:155.82 Stipulation for Settlement entered into September 30, 2011 Judgment Satisfied July 23, 2013 5. Americas Media Group Worldwide, LLC Judgment: $336,924.91 Settlement Agreements were entered into separately by Americas Media Group Worldwide LLC ) for the sum of $255,200.60) and Redwood Custom Communications, Inc. ( for the sum of $81,724.00, which had been assigned by Americas Media Group Worldwide to Redwood Custom Communications for the invoices incurred by Redwood ) Americas Media Group Worldwide, LLC Stipulation for Settlement entered into September 30, 2011 Settlement Amount: $255,200.60 Monthly Payments: $4253.34 Payments To Date (From September 30, 2011 through present- 31 payments): $131,853.54 Current Balance: $123,347.06 Terms: 60 months, beginning September 30, 2011 Redwood Custom Communications, Inc. Stipulation for Settlement entered into September 30, 2011 Settlement Amount: $81,724.00 Monthly Payments: $1,362.06 Payments to Date (From September 30, 2011through present- 31 payments): $42,223.86 Current Balance: $39,500.14 Submitted into the public recored in ao connection with item An on r.-� I s j) u� d j City Clerk 1 i Term: 60 months, beginning September 30, 2011 6. Pandiscio Settlement Agreement entered into September 27, 2011 Settlement Amount: $119,588.00 Monthly Payments: $1,933.13 Payments to Date (From September 30, 2011 through present- 31 payments): $59,927.03 Current Balance: $59,660.97 Term: 60 months, beginning September 30, 2011 Total Current Outstanding Balance: $222,508,17 2 Submitted into the public record in connection with Item (zE. ! on City Clerk KEVIN D. COWAN PARTNER (305) 379-9110 Direct Telephone (305) 347-7710 Direct Facsimile SHUTTS BOWEN LLP Founded 19.10 March 27, 2014 Florida Department of Environmental Protection Attention: Katy Fenton, Deputy Secretary for Land and Recreation 3900 Commonwealth Boulevard Tallahassee, Florida 32399 Flagstone Island Gardens, LLC Attention: Nathalie H. Goulet, Esq. 888 MacArthur Causeway Miami, Florida 33132 Submitted into the public record' connection with o itemle � on 5j /I City Clerk EMAIL ADDRESS: kcowan@shutts.com Re: Flagstone Island Gardens LLC Escrow Payments Under that Certain Amended and Restated Partial Modification of Restrictions Deed No. 19447-F Dated September 15, 2011, and Recorded on September 16, 2011, in Miami - Dade Public Records, Book Number 27828, Pages 3675-3698 (the "State Waiver') Dear Ms. Fenton and Ms. Goulet: At the request of Flagstone Island Gardens, LLC ("Flagstone"), we hereby confirm to all parties that the undersigned law firm holds, as of the date of the instant letter, the total sum of $206,250.00, for payments due to date from Flagstone to the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida under the State Waiver. If you have any questions, please do not hesitate to contact the undersigned. Very truly yours, tts & Bow Kevin D. Cowan MIADOCS 8918510 2 1500 Miami Center • 201 South Biscayne Boulevard, Miami, Florida 33131 • ph 305.358.6300 • fx 305.381.9982 • www.shutts.com MIAMI i'ulll l.A11DERD.ALF. WEST PALM BEACH ORLANDo TAMPA 'I'AI.rAIIASSFF AMSTERDAM FLAGSTONE • 6-24-04 BOT approved Modification of Deed Restrictions — no preconstruction rents or construction rents to State. • 8-16-11-- BOT approved Amended and Restated Partial Modification of Deed Restrictions — with state now receiving 15% of preconstruction and construction rents paid to the City. Also required all judgements be paid off or monies put in escrow byJanuary 17, 2012. • 12-02-11— sent email to Kevin Cowan advising we were checking to find out current status of Flagstone's discharge of all undischarged judgements which was a condition of Board of Trustee's approval on 8-16-12, • 12-13-11— sent another email to Mr. Cowan since I had not heard back from him and he advised he had been out with the flu but they were working on judgements and there was only one left in the amount of approximately $235,000. He also mentioned the City and Flagstone were still working on the Agreement to Enter which had not yet been signed. • 1-20-12 — received email from Mr. Cowan advising they are in process of researching the smoothest and safest way to deposit funds with the Clerk of Court in accordance with the agreement. • 2-03-12 — I sent another email to both Mr. Cowan and the City staff asking for an update on the status of when Flagstone and the City anticipate providing us with the signed Agreement or if funds have been put in escrow with the Clerk of Courts pursuant to the agreement. • 2-08-12 — I sent another email stating we were still awaiting a response from my 2-03-12 email, we received a response from Mr. Cowan stating that he had spoken with the City attorney and he would send a full status report tomorrow. • 2-09-12 — received an email response from Mr. Cowan stating sorry for the delay in responding and that by February 9, 2012, the City will have signed the documents and Flagstone will have paid off Beach Tower Judgement. • 3-01-12— Mr. Cowan (Flagstone Attorney) sent email with Satisfaction of Final Judgement attached stating "I know the State has not waived any rights, but I do thank you for your good direction/sounding of the alarm for me". • 6-04-12 - letter sent to Flagstone and City advising of automatic termination per agreement an January 18, 2012, and that Flagstone owes BOT $18,750 for January 1, 2012, semi-annual payment. • 6-08-12 — DEP received payment $18,750 via Fed Ex • 6-29-12-- returned check ($37,500) to Flagstone for 1-1-12 payment since no agreement in effect. Submitted into the public record in connection with titem'�1 on 5iSsJ1l-1 City Clerk From: Sent: To: Cc: Subject: Madan, Rogelio Tuesday, February 12, 2013 11:25 AM Sanchez, Carmen Ruck, Harold DRI Credit Reservations • Flagstone Island Gardens has only paid the reservation portion of the DRI. According to the original invoice issued in 2005 they still owe $302,150. That will have to be revised based on updated fee coefficients. • The Met project has paid in full and still has credit remaining for the two remaining blocks. However, I have heard that they are modifying the program. I have to confirm that the modifications fall under the credits that they have remaining. • Genting has not presented any plans nor have they reserved any credit. They will likely receive credit from the demolition of the Herald Building. Rogelio A. Madan City of Miami Planning and Zoning Department I Community Planning Section 444 SW 2nd Avenue 3rd Floor 1 Miami, FL 33130 Direct Phone: 305.416.1446 1 Fax: 305.416.2156 rmadanCamiamigov.com 1 www.miamigov.com/planning 1 www,miami2l.org `iA Please consider the environment before printing this email. The information contained in this transmission may contain privileged and confidential information. It is intended only for the use of the person(s) named above. If you are not the intended recipient, you are hereby notified that any review, dissemination, distribution, or duplication of this communication is strictly prohibited. If you are not the intended recipient please Immediately contact the sender by reply E- mail and destroy all copies of the original message. Thank you *Please Note: Due to Florida's very broad public records law, most written communications to or from City of Miami employees regarding C ty business are public records, available to the public and media upon request. Therefore, this e-mail communication may be subject to public disclosure. Submitted into the public record in connection with • i item Ra i i on 51 19 City Clerk SUBM1TTED INTO THE PUBLIC RECORD FOR ITtMRE.'u ONs6.2oW. G(. 3 file:////dk-sbsl/users/sdubbin/Herbits2013/Feb. 12, 2013 -- Flagstone still owes $302,150 --DRI Credit Reservations.htm[4/I2/2014 1:01:02 PM] Florida Department of Memorandum Environmental Protection NOTICE OF BOARD ACTION TO: Office of the Secretary Office of Coastal and Aquatic Managed Areas Office of General Counsel Office of Greenways and Trails District Office - Division of Recreation and Parks Division of Water Resource Management Division of State Lands FROM: Office of Cabinet Affairs ITEM # 3rd Substitute Item 14 TITLE: BOT/Watson Island Deed Restriction Modification/City of Miami/Flagstone Island Gardens, LLC Lease/Easements CABINET MEETING DATE: June 24, 2004 ACTION: Approved with Messrs. Bush, Crist, and Gallagher voting "Aye" and Mr. Bronson voting "No". MEMBERS: Present Absent GOVERNOR X ATTORNEY GENERAL X CHIEF FINANCIAL OFFICER X COMMISSIONER OF AGRICULTURE X The above action was taken on the subject division agenda item at today's meeting. Will you please see that the information is provided to appropriate staff for further processing/handling of the matter and that the formal action as noted is made a part of the division's master file. Please contact me immediately if you have any questions relating to the item's action as noted (245-2024). Thank you for your cooperation. CC/cb ::4U;',i'vliTTED INiO IHE PUBLIC RECORDFOR hz::!,°, ON _ Department of Environmental Protection Jeb Bush Governor STATE OF FLORIDA COUNTY OF LEON Marjory Stoneman Douglas Building 3900 Commonwealth Boulevard Tallahassee, Florida 32399-3000 CERTIFICATE Colleen M. Castille Secretary I, Christian Caballero, do hereby certify that the Governor and Cabinet, sitting as the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida, met on June 24, 2004, and approved the following 3rd Substitute Item 14 on the agenda for that date. 3rd Substitute Item 14 BOT/Watson Island Deed Restriction Modification/City of Miami/Flagstone Island Gardens, LLC Lease/Easements REQUEST: Consideration of (1) modification of deed restrictions for a parcel of land encompassing 24.2 acres, more or less, on Watson Island, to allow the City of Miami to lease the parcel to Flagstone Island Gardens, LLC; and (2) easements, both temporary and permanent, over other adjacent and nearby areas needed for the project that contain the same deed restrictions on,which modification would be required. COUNTY: Miami -Dade APPLICANT: City of Miami LOCATION: Section 31, Township 53 South, Range 42 East, Biscayne Bay Aquatic Preserve, Class III waters, within the local jurisdiction of the City of Miami. CONSIDERATION: Semi-annual payments in the amount of 15 percent of the total rental payments received by the City of Miami (City) from the lease of the property to Flagstone Island Gardens, LLC (Flagstone). The payments are to be deposited into the Internal Improvement Trust Fund. Flagstone will spend no less than $1,000,000 to improve an undeveloped, open space area on the southeast side of Watson Island_ APPRAISED BY Waronker Johnston APPROVED PARCEL ACRES (02/01/02) (05/30/03) VALUE Fee Simple 24.2 $29,430,000 $29,395,000 $29,430,000 Annual Rental Rate 24,2 . $ 2,060,000 $ 2,070,000 $ 2,070,000 "More Protection, Less Process" Printed on recycled paper. Submitted into the public record tino connection with item on 5 J/ Ll City Clerk Certificate for 3" Substitute Item 14 June 24, 2004 Trustees' Agenda Page Two STAFF REMARKS: Watson Island was created as a result of dredge and fill activities conducted in Biscayne Bay for the purpose of creating a long and wide channel all the way through Biscayne Bay to the mainland. The project was created to provide a safer and more direct access to the port in Miami. This 86-acre spoil island was conveyed to the City on February 24, 1949, under Dedication No. 19447. Historically, it was not uncommon for the Board of Trustees to dedicate submerged lands to local governments for public purposes. These dedications were often made for no consideration because they were conveyed with public purpose restrictions. Dedication No. 19447 is an example of that practice and contains specific language referencing the public purpose nature of the dedication and prohibiting the sale, conveyance, or lease of the land to any private person, firm, or corporation for any private uses or purposes. At the time of the dedication, there were three commercial activities operating on Watson Island: -Chalk's Airlines, the Miami Yacht Club, and the Miami Outboard Club. Each of the three businesses became a tenant of the City with the dedication of the island to the City in 1949. Since 1956, the Board of Trustees has approved leases between the City and boat clubs. In the past the City has requested, and the Board of Trustees has approved, modifications to Dedication No. 19447. In 1980, the Board of Trustees waived the deed restrictions to allow the City to develop an amusement park on Watson Island. That waiver included a provision requiring the City to dedicate one-third of the revenues it was to receive to economic development projects and one-third to the acquisition and maintenance of city parks. The amusement park was never developed and the waiver has since expired. In 1985, the Board of Trustees modified the deed restrictions to allow construction of a restaurant on a parcel of filled lands adjacent to Bayside Center. Under that modification, the City was required to dedicate the revenues it received from the portion of the development located on the restricted property to the acquisition of lands adjacent to Biscayne Bay or the Miami River with the first acquisition to be the Barnacle Addition. In 1996, the Board of Trustees approved a request to modify deed restrictions on a parcel of land to allow the City to lease a portion of the parcel to Parrot Jungle and Gardens, Inc. In return for the partial modification of deed restrictions, the City is to make an annual payment of $26,250 (representing 7.5 percent of $350,000), or the cumulative total of the following, whichever is greater: 0.64 percent (7.5 percent of the 8.5 percent indicated by appraisal) of annual gross ticket sales; 0.225 percent (7.5 percent of 3 percent indicated by appraisal) of annual gross banquet/restaurant revenues; and 0.3 percent (7.5 percent of 4 percent indicated by appraisal) of annual gross retail sales. Submitted into the public record in connection with itemizY;i on 5Nr{ City Clerk Certificate for 3rd Substitute Item 14 June 24, 2004 Trustees' Agenda Page Three In February 2001, the City issued a Request for Proposal (RFP) to propose, plan, design, develop, construct, lease and manage a state of the art mega yacht marina and mixed -use project on the Biscayne Bay waterfront property on Watson Island. The City received three proposals in July 2001, in response to the RFP, and selected Flagstone based on criteria set forth in the RFP. On November 6, 2001, the City held a special municipal election and voters were given the opportunity to approve whether the City could authorize a 45-year lease, with two 15-year renewable options, of city -owned upland/submerged land on Watson Island. According to City Resolution Number 01-1198, the citizens of Miami approved a referendum supporting the City's proposal to lease the subject area on Watson Island by a 65:35 margin. The lease area consists of 10.8 acres of uplands and 13.4 acres of submerged lands. In addition to the total, leased acreage of 24.2 acres, additional adjacent and nearby lands will also be required, mostly on a temporary basis, to achieve the objectives and schedules of the project proposed by Flagstone and accepted by the City. There are three areas outside the leased area that will be utilized by Flagstone: (1) submerged area, (2) off -site parcels, and (3) south park area. The City will be granting an easement over the lands outside the leased area, but related to the development of the project: The submerged area is approximately 3.57 acres in size. This area is intended to be used for navigation purposes to permit unrestricted movement of mega -yachts from the marina to the federally controlled navigation channels. The South Florida Water Management District is involved with the permitting issues associated with this submerged area. There are two off -site parcels that run adjacent and perpendicular to the leased area. These parcels are needed for utilities and access. The south park area will be used as a construction staging area for the development. In consideration of the Board of Trustees' modifying the public purpose restrictions to allow the City to enter into a public -private, profit making partnership with Flagstone Island Gardens, LLC, the City has agreed to make semi-annual payments to the Board of Trustees in the amount of 15 percent of the total rental payments received by the City from the lease of the subject property. Pursuant to City Resolution No. 01-1070 adopted on October 11; 2001, 50 percent of Flagstone's Base Rent paid to the City will be appropriated to the City's Park Depai lucent. Flagstone's $395,000,000, mixed -use project on the leased area will include the following: • Two hotels ▪ Retail shops • Replacement fish market • Mixed dining facilities • Mega yacht marina Submitted into the public record in connection with Rc.to .itemqcii on 5 S/ly City Clerk Certificate for 3" Substitute Item 14 June 24, 2004 Trustees' Agenda Page Four • Time share fractional units • Land based concert stage • Maritime gallery • Parking garage with roof garden leisure park • Public space and gardens In addition to the development on the leased parcel, Flagstone will spend up to $1,000,000 to improve an undeveloped, open space area on the southeast side of Watson Island and the Japanese Garden on Watson Island. Such improvements may include: a playground, parking area, security cameras, restroom facilities, observation area or platform, underground utilities, fencing, and open air pavilion. The economic benefit that this project will have to the City is substantial. It is estimated that this project will provide the City $4,313,865 of recurring tax income and Miami -Dade County $6,813,712 inrecurring taxes. Projected full time equivalent employees (FTE) will equalin excess of 950 FTE's and during construction, over 3,000 construction jobs will be created. The Department of. Environmental Protection (DEP) has received three objections to the proposed development and waiver of deed restrictions: The Urban Environmental League of Greater Miami (UEL), the 1000 Venetian Way Condominium Association, Inc., and . the Venetian Causeway Neighborhood Alliance, Inc. The UEL is objecting to themodification of deed restrictions until the full impact on public land by the project is examined and the Masterplan of Watson Island is updated. The UEL is also concerned that the public amenities proposed by Flagstone will not be completed, as they. are not part of the lease agreement between the City and Flagstone. The 1000 Venetian Way Condominium Association, Inc. and the Venetian Causeway Neighborhood Alliance, Inc. objections parallels UEL's concerns with the subject development and modification of deed restrictions request. If the Board of Trustees approves this request, the public use deed restrictions contained in Dedication No. 19447 shall remain in full force and affect for all the land described in said dedication, including Watson Island, which are not part of this modification or which have not been previously waived by the Board of Trustees. A local government comprehensive plan has been adopted for this area pursuant to section 163.3167, F.S. The Department of Community Affairs has determined that the plan is in compliance. The proposed action is consistent with the adopted plan according to a letter received by the City. RECOMMEND APPROVAL Submitted into the public record in connection with item on �/5jILJ City Clerk Certificate for 3`d Substitute Item 14 June 24, 2004 Trustees' Agenda Page Five IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Board of Trustees of the Internal Improvement Trust Fund on this 25th day of June A.D., 2004. Christianaballero, Director Office of Cabinet Affairs Submitted into the public record in connection with ,zF o itemd .0 on 4))1�� City Clerk APPRAISAL OF THE MARKET RENT FOR ADDITIONAL DEVELOPMENT RIGHTS AT THE PROPOSED FLAGSTONE ISLAND GARDENS MIXED USE DEVELOPMENT LOCATED ALONG THE SOUTH SIDE OF THE MACARTHUR CAUSEWAY AT THE NORTHWEST END OF WATSON ISLAND, MIAMI, FLORIDA Prepared For The City of Miami Department of Public Facilities 444 S.W. 2 Avenue, Third Floor Miami, Florida 33130 Prepared By Investors Research Associates, Inc. 5730 S.W. 74 Street, Suite 100 South Miami, Florida 33143 DATE OF VALUE May 26, 2013 SUBMJTTED INTO THE PUBLIC RECORD FOR ITEM 14r,i ON 5-1?-c20)q &xs 13-2253 investors research associates, Inc. 5730 sw. 74 street, suite 100 south mlami, floricio 33143-5381 telephone 305-665-3407 fax 305-665-4921 May 30, 2013 Henry Torre Director Department of Public Facilities City of Miami 444 S.W. 2 Avenue Miami, Florida 33130 real estate consultants and appraisers licensed rect estate broker Re: Additional development rights at the proposed Flagstone Island Gardens mixed use development located along the south side of the MacArthur Causeway at the northwest end of Watson Island, Miami, Florida Dear Mr. Torre: The attached appraisal prepared in a self contained report format is being submitted according to your request. This report contains the results of investigations and analyses made in order to furnish an estimate of the market rent for additional development rights at the referenced property. It is our understanding that the property is to be developed as a joint venture between the Related Companies and the Flagstone Development Group. At the present time the City of Miami and the developers have an executed lease agreement whereby the developers have agreed to lease the 7.81-acre site for development of the following: • 221,000 square feet of retail and restaurant uses • Two hotels (one four -star and one five-star) containing a total of 525 rooms • 105 fractional residential units • Parking garages accommodating approximately 1,600 vehicles Submitted into the public record in connection with rielo item'E- I t on 51 cS1 I t1 City Clerk 2 13-2253 A mega yacht facility for dockage of 50 boats in excess of 85 feet in length has also been approved but will be located on an adjoining waterfront site that is not part of this appraisal assignment. Although construction has not yet commenced at the property, it is our understanding that the developers now wish to lease additional development rights to accommodate construction of the following additional uses: • 275,000 square feet of retail and restaurant uses • 105 hotel rooms and/or fractional residential units. The purpose of this appraisal is to estimate the market rent for the development rights for these additional proposed uses. This appraisal is intended to comply with the following: The Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board of the Appraisal Foundation; requirements of the Real Estate Appraisal Board of the Florida Department of Professional Regulation; and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal institute. A Summary of Facts and Conclusions is provided in the front of the report and a Certification of Value appears in the final section. Respectfully submitted, INgrudiy " °'"`"' Edward N. " DN ur•Edwad N. Vadlll.aou. Parker p'; ,zas US Edward N. Parker, MAI State Certified General Real Estate Appraiser #RZ144 Geoffrey D. Heath D.p wly tWn^I Cry CwOry D Ir•ih DN cn.( l3, D NrMIn.[w. anrq+na573(MYaliom. s=LLS Dale 2013 05 10 0.12 10 p'oo' Geoffrey D. Heath, MAI State Certified General Real Estate Appraiser #RZ1456 Submitted into - the public record in connection with Item , on 5)q114 City Clerk 3 13-2253 TABLE OF CONTENTS TABLE OF CONTENTS 4 I. SUMMARY OF FACTS AND CONCLUSIONS 6 I. SCOPE OF THE ASSIGNMENT 7 A. IDI.NTIFICATION OF THE PROPERTY 7 B. PURPOSE AND SCOPE OF THE ASSIGNMENT 7 C. DEFINITION OF MARKET VALUE 8 D. DEFINITION OF MARKET RENT 9 E. PROPERTY RIGHTS APPRAISED 9 F. EFFECTIVE DATE OF VALUE 9 G. INTENDED USE OF THE APPRAISAI 9 H. INTENDED USER OF THE APPRAISAL 9 1. APPRAISERS 9 111. ECONOMIC AND LOCATIONAL BACKGROUND 10 A. MIAMI-DADE COUNTY OVERVIEW 10 B. NEIGHBORHOOD 13 C. THE LOCAL RETAIL MARKET 14 D. THE LOCAL HOTEL MARKET 17 IV. PROPERTY DESCRIPTION 24 A. OWNERSHIP AND HISTORY 24 B. LOCATION AND ACCESS 24 C. SITE DESCRIPTION 24 D. IMPROVEMENTS 25 E. ZONING 25 F. ASSESSMENT AND TAXES 26 V. ANALYSIS OF DATA AND VALUE CONCLUSIONS 27 A. HIGHEST AND BEST USE 27 B. METHODOLOGY 28 C. SALES COMPARISON APPROACH 29 D. INCOME APPROACH 57 E. VALUE CONCLUSIONS 60 VI. ASSUMPTIONS AND LIMITING CONDITIONS 62 VII. CERTIFICATION 64 VIII. QUALIFICATIONS 66 Submitted into the public record in connection with itemvz of on 5J81rq City Clerk 4 13-2253 h11 Meal Si SO 1. DOOM 37 i19i 4 r'r ST n illlii = 901 Submitted into the public record in connection with Item Leal on S/A/14 City Clerk YA :'>in S JJD 2'tnr 31 BJECT PR( Miami -Dade County Basemap 2015 Urban 00v0fo;.rnent Bour•.4.a.^; 2025 Urban F.xpannirnl Are4 Gcv:rniary sumo Miles 0 I 2 Department of Planning and Zoning 5 13-2253 I. SUMMARY OF FACTS AND CONCLUSIONS The Assignment: To estimate the market rent for additional development rights at the proposed Flagstone island Gardens mixed use development on Watson Island. Location: Along the south side of MacArthur Causeway at the northwest end of Watson Island, Miami, Florida. Property Owner: Proposed Lessee: Site Description: Proposed Improvements: City of Miami A joint venture entity to be comprised of the Flagstone Development Group and the Related Companies An irregular shaped parcel containing 7.62 acres with 890 feet of frontage along the MacArthur Causeway. The addition of the following to the original development plans: • 275,000 square feet of retail/restaurant space • 105 hotel rooms and/or fractional residential units Zoning: T6-36A-O, a mixed use designation that allows a floor lot ratio of I I 2012 Assessment: $15,759,978 Market Rent Conclusions: Date of Value: Appraisers: $],089,000 plus one percent of revenue with annual CPI adjustments to base rent. Real estate taxes, if any, would be the responsibility of the lessee. If the total amount of additional retail/restaurant space increases by 25,000 square feet to 300,000 square feet the market rent would increase by $70,000 plus one percent of revenue. May 26, 2013 Edward N. Parker, MAI Geoffrey D. Heath, MAI Submitted into the public record in connection with item ¢ on slat I1.1 City Clerk 6 13-2253 II. SCOPE OF THE ASSIGNMENT A. Identification of the Property The property that is the subject of this appraisal is a 7.62-acre vacant parcel located along the south side of MacArthur Causeway at the northwest end of Watson Island. This is the location of a proposed mixed use development to be known as Flagstone Island Gardens. The following legal description was taken from the plat of the property: Tract A of Watson island Southwest, Plat Book 166, Page I1, Miami -Dade County, Florida B. Purpose and Scope of the Assignment The City of Miami has entered into an agreement to lease a 7.62-acre parcel on Watson Island to a developer for construction of retail, restaurant, hotel, and parking uses. The developer now wishes to lease additional development rights at this property for construction of additional retail/restaurant and hotel uses. The purpose of this appraisal is to estimate the market rent for these additional development rights at the property. The function of this appraisal is to provide the City with an estimate of market rent for lease negotiation purposes. The scope of the assignment encompasses the following steps performed within the framework of commonly accepted appraisal procedures: • Reviewed a March, 2002 appraisal of the property prepared by Joseph J. Blake and Associates that was provided by the client. • Personally met with Henry Torre, Aldo Bustamante, Miguel Villalobos, and Mark Burns of the City's Department of Public Facilities. These City officials provided information on the property being appraised. • Researched and confirmed recent sales of similarly zoned vacant properties in the City of Miami. • Obtained information from the City of Miami and the City of Coral Gables regarding leases of land to developers. Submitted into the public record in connection with 'stem g 11 on ! J I Li City Clerk 7 13-2253 • Reviewed available retail and hotel market data • Surveyed various sources for land capitalization rates • Analyzed rental rates for competitive retail space and hotel rooms • Researched land leases of other properties to determine percentage rent data for use in the income analysis • Formulated reasonable opinions and judgments based on supply and demand factors, as well as physical and functional considerations relative to the highest and best use of the subject property. • Analyzed these data in order to formulate sound valuation judgments within the framework and application of the appropriate approaches to value. C. Definition of Market Value The following definition of market value is provided by the Appraisal Foundation. The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Submitted into the public recorsi in connection with item jaal on 5/Sjjq City Clerk 8 13-2253 D. Definition of Market Rent The following definition of market rent was taken from the Dictionary of Real Estate Appraisal. The rental income that a property would most probably command in the open market; indicated by current rents paid and asked for comparable property as of the date of appraisal. E. Property Rights Appraised This appraisal is made with the understanding that the present ownership of the property includes all the rights that may lawfully be held under a fee simple estate. F. Effective Date of Value May 26, 2013 G. Intended Use of the Appraisal The intended use of the appraisal is to provide the client with valuation information to be used in the negotiation of a lease for the development rights described herein. H. Intended User of the Appraisal The intended user of the appraisal is The City of Miami. I. Appraisers Edward N. Parker, MAI Geoffrey D. Heath, MAJ Submitted into the public record in connection with item � on 3t 1 l y City Clerk 9 13-2253 III. ECONOMIC AND LOCATIONAL BACKGROUND A. Miami -Dade County Overview Miami -Dade County is divided into 36 municipalities with the largest being the cities of Miami, Hialeah, Miami Beach, North Miami and Coral Gables. It encompasses approximately 1,973 square miles in southeastern Florida. The eastern part of the county is intensely developed and much of the density is concentrated within a few miles of the Atlantic Ocean and Biscayne Bay. Most of the western part of the county is undeveloped or sparsely developed. The western part of the county is mostly low-lying, level land. Much of it is subject to seasonal flooding. These wetlands are part of the Everglades' River of Grass, a delicate ecosystem. The Everglades are the recharge area for South Florida's sole source aquifer. The aquifer supplies the drinking and agricultural water needs for more than three million people in Southeast Florida. Miami -Dade County appears to have a vast supply of open land for urban expansion. However, the Everglades, the aquifer and other critical environmental conditions effectively have limited the supply of developable land. In addition, the 1985 Florida Growth Management Act made it much more difficult to change zoning and land use patterns. It also prohibited approval of major new developments until the roads, schools and other infrastructure improvements are sufficient to support the increased population attracted by the new development. Development now requires a much more costly and time-consuming approval process with significantly more public scrutiny. Beginning in 2003, Miami -Dade County experienced a period of unprecedented housing construction in all developable areas of the county. From 13,520 new housing units authorized in Miami -Dade County during 2003 activity peaked at 27,212 units authorized in 2005. Reflecting deteriorating economic conditions and significant overbuilding, however, authorizations eased to 16,536 new units in 2006 and plummeted to 4,026 units in 2008 and 2,657 units in 2011. Local housing markets are only very recently showing signs of recovery in the form of declining unsold inventories, stabilizing prices levels, and increases in new construction activity. Population From 1970 to 1980, Miami -Dade County was one of the fastest growing urban regions in the United States. However, following the double impact of the recession of the early 1990s and Hurricane Andrew in 1992, the county actually lost population during 1992 and 1993. These losses were made up in the mid- and late 1990s. The 2000 U.S. Census reported the county had a net gain of some 367,298 residents over the 1990 population, an increase of over 16 percent. The Submitted into the public record in connecti.n with ttemp ..iron 5 4i iL 10 13-2253 City Clerk 2010 Census estimated the population of the county to be at 2,500,625. This is a more modest gain from the reported 2000 population of 2,253,362. Declines in economic activity on a state - wide level have been blamed for this interruption. An unusually high proportion of Miami-Dade's growth results from births. Also, the immigrant population is typically youthful. As a result, Miami -Dade has a relatively young population, with about 30 percent of its residents under the age of 25 (compared to 38 percent in Palm Beach County and 28 percent in Broward County). A young and generally less -educated immigrant population contributes to Miami -Dade County's relatively low-income levels. At $43,957 in 2011, the median county household income was below that of both the State of Florida ($47,827) and the United States ($52,762). Employment The general trend in employment within Miami -Dade County over the past five years is illustrated below. Non -Agricultural Employment Trends Miami -Dade County 2008-2012 Industry 2008 2009 2010 201I 2012 Total Nonagricultural Employment 1044,300 1,018,700 987,000 1,014,700 1,023,700 Construction 44,500 38,300 31,800 30,700 27,300 Manufacturing 43,500 40,600 34,000 33,800 34,900 Transportation and Public Utilities 79,800 78,000 74,300 77,700 81,100 Trade 203,900 197,300 192,700 202,600 210,000 Finance, Insurance and Real Estate 72,200 70,100 61,100 60,200 63,600 Service and Mining 444,300 442,100 438,700 456,500 463,400 Government 155,600 152,300 154,500 153,200 143,400 Civilian Labor Force 1,2) 5,098 1,155,000 1,292,561 1,279,120 1,299,144 Unemployment 85,367 136,289 168,110 130,160 118,682 Unemployment Rate 7.0% 1 l_8% 13.0% 10.2% 9.I% Source: Agency for Workforce Innovation Total county nonagricultural employment in 2012 showed a second annual uptick after declines that began in 2008. This is consistent with recent gradual improvements reported in national economic conditions. The trade and service sectors continue to dominate local employment, accounting for over 65 percent of 2012's total employment of 1,024,000. Historically, growth in the trade sector has helped to offset losses in the manufacturing sector. Submitted into the public record in connection with itemoE.(r° on City Clerk 13-2253 t. • L1::x Sr, cLL V. 1AL.'1FT(. 3 " Cr o 3 and O O Q CPS '- moo. co n . , 2 n " PRESERVE no AiG:) f LANQ R)yo WRING .t.ro I'FJ 1 cP1 '0i.R."f f �A n ISLA a �.. tsLt d i ,11, 1 _ ` BELLE ISLE -- Pr M2fSCUS I: L_AAX rm rA tAwrte DODGE • ISLAND NEIGHBORHOOD MAP ALAGLER MEAfptiAL 'SLAW 12 13-2253 Consistent with national and state trends, Miami -Dade County's unemployment rate has shown recent improvement after peaking at 13.0 percent in 2010. Countywide unemployment was 9.1 percent in December 2012, compared to the state average of 8.0 percent and the national average of 7.8 percent. Conclusion Recent economic activity in the county has slowed and the population growth which characterized all of Florida has at least temporarily ebbed. The source of past population growth in Miami -Dade County is not especially conducive to economic growth, at least for the short term. Miami -Dade County has a higher than average birth rate and a large, low-income immigrant population. Based on historic patterns, the long-term prognosis is more positive. In the past, immigrants to Miami -Dade have proven to be energetic entrepreneurs and most job creation comes from small businesses. The single most significant growth industry in Miami -Dade is international trade, which generates demand for warehouse and distribution space, transportation services, as well as legal and banking services such as letters of credit. The strength of this industry is attributable to Miami's largely bilingual population in addition to the area's linkages to Latin America. B. Neighborhood The appraised property is located at the northwest end of Watson Island on the south side of the MacArthur Causeway as it crosses Biscayne Bay. The MacArthur Causeway, linking mainland Miami to Miami Beach, is the only roadway currently accessing the appraised property. At its west end this causeway connects to downtown Miami, 1-395 and 1-95. At its east end this causeway connects to 5th Street on Miami Beach. Primary land uses on Watson Island include Parrot Jungle (a tourist attraction with meeting facilities), the Miami Outboard Club, a public boat marina and the Miami Children's Museum. To the south of Watson Island is the Port of Miami, serving both cruise and cargo ships. The western portion of this island comprises the cruise passenger terminals, with eastern portions devoted to container and cargo shipping. Currently under construction is the Port of Miami Tunnel Project which will access the port to/from 1-395 via a tunnel under Government Cut connecting to the MacArthur Causeway on Watson Island. Completion of this tunnel would not appear to affect current access to the appraised property. To the north of the appraised property is the Venetian Causeway connecting five small residential islands to mainland Miami and Miami Beach. This toll road carries primarily local resident traffic between Miami and Miami Beach. Submitted into the public record in tonne tion with !itemi i1 on5 VILI City Clerk 13 13-2253 Locational advantages of the appraised property include its proximity to the Port of Miami, the Miami Airport, downtown Miami and South Beach. This location also offers attractive waterfront vistas of the port, the downtown and surrounding bayfront residential neighborhoods. C. The Local Retail Market The Miami retail market has fared well in the face of the recent declines in economic activity experienced both locally and nationally. A number of firms survey the county retail market on a regular basis. In their 2012 reports, two of these firms estimated the following countywide retail vacancy rates. Miami -Dade County Retail Market 2010 - 2012 Mid 2012 Mid 2011 Mid 2010 Source inventory - S.F. Vacancy Rate Vacancy Rate Vacancy Rate Colliers International 59.9 million 4.6% 5.5% 6.4% Marcus & Millichap 50.0 million 6.3% 6.2% 7.4% The general downward trend in retail vacancy rates in Miami -Dade County is evident. Overall vacancy rates estimated by Collier International for 2011 and 2012 comprised the following components by retail property type. Inventory Mid 2012 Mid 2011 Retail Property Type Surveyed - S.F. Vacancy Rate Vacancy Rate Neighborhood Center 18.3 million 5.5% 6.5% Community Center 14.1 million 4.8% 6.5% Lifestyle Center 1.5 million 4.9% 9.2% Outlet Center 0.3 million 0.0% 0.0% Power Center 3.1 million 0.9% 4.0% Regional Center 4.3 million 5.5% 2.8% Strip Center 7.5 million 6.0% 10.3% Super Regional Center 10.4 million I.8% 0.3% Entertainment Center 0.7 million 10.8% 15.2% Miami -Dade Retail Total 59.9 million 4.6% 5.5% Most recently Marcus and Millichap reported that shopping center vacancy in Miami -Dade County averaged 5.0 percent in the First Quarter of 2013. Strong demographics within the Aventura, Brickell/Downtown and Coral Gables submarkets have attracted numerous high -end retailers and pushed some retail vacancy rates below 2.0 percent in these areas. Weaker demographics in outlying areas of the county have resulted in vacancy rates above 10 percent in these sectors. Submitted into the public record in connection with • item on5Jfr�`N City Clerk 14 13-2253 UPSCALE RETAIL RENTAL RATES — DOWNTOWN MIAMI AND CORAL GABLES Property Address Year Built Leased Area (S.F.) Base Rent Per S.F. Rental Basis Comment Hampton Inn 30-60 S.W. 12 Street, Miami 201 I 1,600-4,157 420-757 $46-$49 $80-$94 NNN NNN Ground floor storefront in 22I room hotel Three story office/retail 35 S.E. 9 Street, Miami Under construction 3,600 $55 NNN First floor retail adjacent to Brickell Village Epic Hotel and Residences 200 Biscayne Boulevard, Miami 2008 350-2,638 $70-$75 Modified Gross Retail space fronting Biscayne Boulevard in hotel/condominium tower Ingraham Garage 225 S.E. 2 Street, Miami 1945 674-1,028 $45 NNN Ground floor retail space in Miami CDB Bayside Marketplace 401 Biscayne Boulevard, Miami 1987 300-10,000 $30-$100 NNN Miltilevel 225,000 S.F. festival center on Biscayne Bay in Bayfront Park. Opera Tower 1750 Biscayne Boulevard, Miami 2009 1,800-8,900 $38 NNN Ground floor retail space in 60 story condominium on Bay Museum Tower 1040 Biscayne Boulevard, Miami 2007 3,000-8,270 $48 NNN First floor retail in 50 story office/residence tower Four Ambassadors 801 Brickell Bay, Miami 1970 4,500 $30 NNN Turn -key restaurant space in hotel/condominium lobby 900 Biscayne Bay 900 Biscayne Boulevard, Miami 2008 6,000 $40 NNN Turn -key bar space fronting Biscayne Boulevard in 516 unit condominium Submitted into the public recordrecolitclitri connection with item et, 1+ on 5/sir City Clerk 15 13-2253 UPSCALE RETAIL RENTAL RATES — DOWNTOWN MIAMI AND CORAL GABLES Property Address Year Built Leased Area (S.F.) Base Rent Per S.F. Rental Basis Comment The Colonnade 128 Aragon Avenue, Coral Gables 1926 2,115 $38 Modified Gross First floor retail space in 11 story hotel/office project 396 Alhambra 396 Alhambra Circle, Coral Gables 1964 17,873 1,473-5,519 $35 $40-$45 NNN Modified net First floor retail space in 273,000 S.F. office building Merrick Park 358 San Lorenzo Avenue, Coral Gables 2002 Shop spaces $40-$80 NNN Retail space in multilevel center anchored by Nordstrom and Neiman Marcus Miracle Market Place 3301 Coral Way, Coral Gables 1989 9,875 $37 NNN Retail space in seven story power center with Marshalls and Bed Bath and Beyond Submitted into the public recoVierd. io connection with Itempe. 1 on r -py City Clerk 16 13-2253 With increasing demand for retail space, Marcus and Millichap estimates shopping center rents in the county averaged $22.80 per square foot in the First Quarter of 2013. Upscale retail centers in the Brickell/Downtown, Coral Gables and Miami Beach submarkets had average rents of over $40.00 per square foot. As illustrated in the attached table on the previous pages, upscale retail space rents in the Brickell/Downtown market area range from $30 to $100 per square foot depending on relative location and store size. Comparable upscale rents in the Coral Gables submarket average $35 to $80 per square foot. Marcus and Millichap anticipates retail rents countywide will rise 2.2 percent in 2013 (compared to 4.2 in 2012). The strengthening local retail market has not gone unnoticed by developers. An estimated 425,000 square feet of retail space is now under construction throughout the county. And over 4.0 million square feet of new retail space is planned or proposed, more than half of which is located within the City of Miami. This level of activity can be expected to temper future increases in both retail rents and occupancy levels throughout the county. D. The Local Hotel Market Data compiled by Smith Travel Research inventoried a total of 48,430 available hotel rooms within 368 facilities in Miami -Dade County as of March 2013. As indicated below, 29 of these facilities with 6,589 rooms are located in downtown Miami, representing 14 percent of the countywide inventory. Other concentrations of hotel rooms in the county are on Miami Beach (35 percent) and the Miami Airport (16 percent). Miami -Dade Hotel Inventory By Regions March 2013 Miami -Dade Region Facilities Rooms 0/0 Airport 43 7,672 15.8% Aventura/Sunny Isles 15 2,714 5.6% Central Dade 19 2,084 4.3% Coral Gables 15 1,677 3.5% Doral 20 3,373 7.0% Downtown 29 6,589 13.6% Grove/Key Biscayne 12 1,716 3.5% Miami Beach 140 16,696 34.5% North Dade 37 2,985 6.2% South Dade 29 2,077 4.3% Surfside/Bal Harbor 9 847 1.7% Total Hotel Inventory 368 48,430 100.0% Submitted into the public record in connection with itemaa e.ti on City Clerk 17 13-2253 In 2012 Smith Travel Research ranked the Miami area as fourth in the nation in terms of hotel occupancy rate, average daily room rate, and revenue per available room. Only San Francisco, New York and Oahu ranked higher. The relative strength of the Miami hotel market is evidenced in the regular occupancy reports compiled by the Convention and Visitors Bureau as summarized below. Annual Average Hotel Occupancy Rates Miami -Dade County Year 2011 2012 3 mos 2013 Estimated 2013 Market Sector Downtown Miami 73% 75% 85% 79% Miami Beach 75% 76% 85% 79% Miami -Dade County 75% 76% 86% 79% Average daily room rates in the county have also shown a clear upward trend since 2011 as reported by Smith Travel Research. Average Daily Hotel Room Rates Miami -Dade County Year 2011 2012 3 mos 2013 Estimated 2013 Market Sector Downtown Miami $158 $ 169 $237 $190 Miami Beach $212 $227 $31.2 $258 Miami -Dade County $154 $I64 $223 $184 An estimated 2013 average room rate of $190 in downtown Miami and $258 on Miami Beach is consistent with the current room rate schedules of the following downtown four -plus star hotels. 2013 Room Rate Schedule Downtown Miami Four + Star Hotels Hotel Address No. of Rooms Double Room Rates Conrad Miami 1395 Brickell Avenue 203 $159-$319 Epic 270 Biscayne Boulevard 411 $229-$409 Intercontinental 100 Chopin Plaza 641 $139-$389 Hyatt Regency 400 S.E. 2 Avenue 612 $159-$369 Mandarin Oriental 500 Brickell Key 326 $435-$900 Four Seasons 1435 Brickell Avenue 260 $250-$500 Viceroy 485 Brickell Avenue 162 $300-$500 Submitted into the public record. i 0 in connection with iZ E item rF. I ► on S/YI(tf City Clerk 18 13-2253 Expected to mitigate the strong upward trend in Miami area hotel performance indicators is the large number of hotel projects now in the proposal and planning stages. Now under construction is a 247 room Embassy Suites in downtown Miami and a 400 room facility at the airport. Proposed projects in downtown Miami include the extensive Genting hotel/casino development on Biscayne Bay and redevelopment of the Miami Arena site, among numerous others. Submitted into the public record in conn ction with item gr'o on 5 P IL( 19 13-2253 City Clerk STA1'E ROAD A I A. URNING BASIN Iw+ Submitted into the public recoo lie connection with item E.1 i on 5 i City Clerk - WA r.1�ry-J'©► N�' ERLIAND a JUTr E,R A SUF3ONIS;ON OF A PG.t1I0N OF SEGi,u45 31 ANC 32, TOWTiSHP 53 SOUTH, RANGE 42 EAST ANU SECTION 5, TOWNSHIP 54 SOUTH, RANGE 42 EAS1, CITY Or MWNn1EI, 1,t141.1'—DADE COUNTY, FLORIDA. *a0.- a •0• ti by 1. .,y4„Viitia N,.�'t \.IjS y� sA Vyt� 1 WA i i• tN i%IDA•NER .SURVEYING AND MAPPING PA Mrw.,t1+ - L-.,.� - ,twni. - Twgry. - 414.44.414 :0410 1.e 3101 r.mar. r.,..l. Ov11:44 4CCf0 (0001 100-000I ':1A. Yas+ ,0001 IIS GCA(1( p 1y1 i 1004OY127 nw' T 0AAUL 15. �0 - 0011 PLAT MAP I 10011T INC MAT..0 Rv pll, A •10 P:wNr_ .0114 (011C£O0 u< 111£ 93444x.4 1Fp4 00 04:Sc01M.7 111E iw cNcw+wler:: 0r wnn.hrto 01 01P+001.i 0-, fOr 01711d 17011 ft IK M4A( 11410( W,4 01 0W0co OW AFC NOT 00000 .0 01e 10O. our 114.1 WY 04 YW1C I401100 00 'M. caper ✓ MAI- G6IN, ifucin CV C0,116 0T1W1C O 01114: 1141£ ldT F:OFS 00P101:141-14t .Y 10,44W.e • 1Og14$ 00 '3mf • ice) CA0 441Y10L WORM 0 O% W 14454 r0P 140044144411 COI*AA Mfg 1@ M0. 0L*Wwet£M1 Akfrfa 40f w24,1 KO 01K0. 0.1. 01701t Or UWEICY 00.0 ►0041 n OICOIM/. 1440. 0tlrtt Qf 0010014e40404 MS 1,441 04C*Rl1 LAM 9M017100 O WOWS OF OAAO. ( 1Y 04 n M* x& 1L17 17A 1:11.0r04 000 V101111E0 YI1k410Y: 40) 00144:: 0/►JO Or00K 11444Of=. A:4 20 13-2253 AERIAL VIEW OF THE SUBJECT PROPERTY N VENETIAN OR ;. 1 * ,'i=Nt„F • t :40111'".r`_Fyrr !fir yENET1AN WAY 14 VENETIAN WAY-r - It!", i I , I � Submitted into the public record in connection with item gr.' I on 5/ £"/ ! y City Clerk 21 13-2253 VIEWS OF THE SUBJECT PROPERTY Looking northwest along Parrot Jungle Trail. The subject site is at the left, eastbound lanes of the MacArthur Causeway are at the right. Submitted into the public record in connection with item 6-;Pon Sig//j Looking north along Parrot Jungle Trail. The subject property is at the left. The MacArthur Causeway is at the right and center of the photo. Looking north from the south end of the property. The fenced area at the right is presently utilized to store construction equipment and materials related to the Port of Miami Tunnel Project. 22 13-2253 City Clerk VIEWS OF THE SUBJECT PROPERTY Looking south from about the north end of the site. Submitted into the public record ' connection with itemFQc.ii on- City Clerk Another view looking north from the south end of the site. The MacArthur Causeway bridge over the Intracoastal Waterway is visible at the left. Looking east at the storage yard for the Port of Miami Tunnel Project. 23 13-2253 IV. PROPERTY DESCRIPTION A. Ownership and History The appraised property is owned in the name of the City of Miami c/o the Asset Management Department, 444 S.W. 2 Avenue, Suite 325, Miami, Florida 33130. The Miami -Dade County Property Appraiser's records do not indicate when the City acquired the property. There do not appear to have been any transfers of ownership during the last 10 years. The City has entered into a lease agreement whereby a joint venture between the Related Companies and the Flagstone Development Group has leased the vacant site for development of a mixed -use project to be known as Flagstone Island Gardens. The lease allows development of221,000 square feet of retail/restaurant space, 525 hotel rooms, 105 fractional residential units, and a parking garage for approximately 1,600 vehicles. The lease also allows construction of a mega yacht facility on an adjoining parcel that is not the subject of this appraisal. B. Location and Access The subject site is located along the south side of the MacAthur Causeway at the northwest end of Watson Island within the municipal limits of the City of Miami. Access to Watson Island is provided by the MacArthur Causeway (1-395) which has a full interchange with interstate 95 about 1.75 miles to the east. MacArthur Causeway is a six -lane median divided roadway that continues east past Watson Island to Miami Beach about two miles to the east. Although access to Watson Island is direct, access to and from the subject site is somewhat circuitous. One must exit MacArthur Causeway to a frontage road (Parrot Jungle Trail) at a point beyond the subject and then circle back to the property. To exit one must cross under the MacArthur Causeway bridge over the Intracoastal waterway and proceed south back toward Parrot Jungle. There is an entrance road to the westbound lanes of the causeway at that point. C. Site Description As indicated on the enclosed plat of Watson Island Southwest, the subject site is an irregular shaped parcel containing 331,789 square feet, or 7.62 acres of land area. It fronts the MacArthur Causeway a distance of 890.47 feet. The south end of the site extends southwesterly 704.29 feet to the turning basin in Government Submitted into the public record in conn fiction with itemVr on 51 8rl 14 24 13-2253 City Clerk Cut with 166.41 feet of frontage along the water. The site fronts 701.27 feet along the proposed marina component of the subject's development. The site is generally level. According to FEMA Flood Insurance Rate Map No. 12086C0316L dated September 11, 2009, the property is located with Flood Zone AE, a Special Flood Hazard Area subject to inundation by the one percent annual chance flood. Base flood elevation is nine feet. All necessary municipal utility services are available to serve the property. D. Improvements This site is presently vacant but it has been approved for construction of the following uses: • 221,000 square feet of retail and restaurant uses • Two hotels (one four -star and one five-star) containing a total of 525 rooms • 105 fractional residential units • Parking garage accommodating approximately 1,600 vehicles The developers of the property have executed an agreement with the City of Miami to lease the subject site for the construction of these facilities as well as to build a mega yacht marina on adjoining waterfront land that is not addressed in this appraisal. In addition to the uses summarized above, the developers now seek additional development rights for construction of the following: • 275,000 square feet of retail and restaurant uses • 1.05 hotel and/or fractional residential units. As stated previously, the purpose of this appraisal is to estimate the market rent associated with these additional development rights. E. Zoning The appraised property is presently zoned T6-36A-O, Urban Core Transect by the City of Miami. The T6-36 classification is a very intense zoning category. It allows a wide range of uses including hotels, offices, apartments, retail, and other Submitted into the public record in connection with ac.IOl item vp,J on 25 13-2253 City Clerk commercial uses at very high densities. Development parameters include the following: Minimum lot size: 5,000 S.F. Minimum lot width: 100 feet Maximum lot coverage: 80 percent Floor Lot Ratio (FLR): 12 (including parking garages) Open Space Requirement: 10 percent of lot area Minimum Setbacks: Front: 10 feet Side: 0 Rear: 0 Maximum Building Height: 36 floors Maximum Residential Density: 150 units per acre Note: Based on an FLR of 12 the subject site can be improved with a development comprising up to a total of 3,981,468 square feet (331,789 S.F. of land x 12 FLR). F. Assessment and Taxes Folio No.: 01-3231-061-0010 2012 Assessment: Land: $15,759,978 Improvements: 0 Total: $15,759,978 Because the subject property is owned by the City of Miami it is not subject to real estate taxes. However, if it was privately owned the 2012 tax burden would be $356,071 Submitted into the public record connection with item7in on 5 f/iI4 City Clerk 26 13-2253 V. ANALYSIS OF DATA AND VALUE CONCLUSIONS A. Highest and Best Use Highest and best use is a fundamental premise of real estate valuation and may be briefly defined as: Highest and best use is the reasonably probable and legal use of vacant land or improved property which is physically possible, appropriately supported, financially feasible, and results in the highest value. Legally permissible: The subject site's T6-36A-O zoning allows a wide array of commercial and residential uses at a floor lot ratio (FLR) of 12. As previously addressed, a total of 3,981,468 square feet of building area (including parking) could legally be constructed on the site. Assuming parking garage(s) utilize about 40 percent of the total building area, the site could legally be improved with up to 2,389,000 square feet of building area. The City of Miami has previously approved construction of 221,000 square feet of retail/restaurant space, 525 hotel rooms, and 105 fractional residential units. Assuming 1,000 square feet of building area for each hotel room and fractional unit, the previously approved development at the property comprises a total of 851,000 square feet, or 36 percent of the maximum FLR allowed. The proposed additional development being addressed in this appraisal is 275,000 square feet of retail space and 105 hotel rooms. Again assuming 1,000 square feet of building area per hotel room, the total additional space is 380,000 square feet. Adding the amount of previously approved building area (851,000 S.F.) to the proposed additional space (380,000 S.F.) indicates a total building area of 1,231,000. This is only about 52 percent of the total amount of space that can legally be constructed at 27 13-2253 Submitted into the public record in connection with item e,Ii on 5/ /( City Clerk Physically possible: Financially feasible: Maximally productive: the subject property. Therefore, the proposed additional space is considered legally permissible. Soil reports have not been provided so it is assumed that the ground at the property will physically support the proposed development. The size and configuration of the site appear to be adequate for the proposed construction. The property is considered to be physically capable of accommodating the proposed development. The scope of this assignment does not include in- depth feasibility and marketability studies for the proposed development. However, our research indicates the retail and hotel markets in the subject area have strengthened during the last two years. It would appear that the proposed uses are financially feasible. Again, in-depth feasibility and marketability studies are not within the scope of this assignment. Nevertheless, the proposed uses would appear to be the most productive of the uses allowed by the property's zoning. The proposed uses of the subject property are considered to be consistent with the site's highest and best use B. Methodology Usual appraisal procedure involves an estimate of value by three separate approaches: the cost approach, the sales comparison approach, and the income capitalization approach. From the indications of these analyses and the weight accorded to each, an opinion of value is reached within the outline of the appraisal process. In this instance the purpose of the appraisal is to estimate the appropriate land lease rate for the proposed additional development rights discussed herein. The first approach presented is a sales comparison approach that considers sales of similarly zoned vacant sites in order to determine land value at the property. Based upon analysis of the floor lot ratios (FLR) at the sale properties and an analysis of land return rates in the market an appropriate land return rate is applied to the FLR to be leased to the developers. The result is the market rent for the proposed development rights to be leased. Submitted into the public record in connection with item 4e ri on 5/8]11 28 13-2253 City Clerk An income approach is also presented. This analysis reviewed other ground leases of public lands to private developers which included a provision for percentage rent based on gross revenues. Applying a percentage rate concluded appropriate for the appraised property to an estimate of additional revenue provided a supplemental method of deriving a stabilized annual rent estimate for the appraised property. C. Sales Comparison Approach I. Land Value A. Market Data A thorough search was conducted to identify recent sales of comparable sites within the City of Miami in the general vicinity of the subject. Pertinent details relative to seven recent land sales and several recent offers on two other properties are presented on the following pages. A location map, summary table, and analysis follow the sale write-ups. Submitted into the public record in connection with �item Di;tf on 5101/ City Clerk 29 13-2253 Sale Date: Grantor: Grantee: O.R. Book & Page: Folio No.: Site Size: Land Sale No. I Location: Northwest corner of South Miami Avenue and S.W. I 1 Street, Miami December 6, 2011 A. Miami Avenue Holding Company B. Eleventh Street Holding Company FX South Miami, LLC A. 27919/ 1276 B. 27919/1301 01-0207-040-1270 A. I0,000 S.F. B. 7,500 S.F. 17,500 S.F. Zoning: T6-48B-O 30 13-2253 Floor Lot Ratio (FLR): 18 Maximum Permitted FLR: 315,000 S.F. Sale Price & Terms: A. $5,000,000 B. $2,500,000 $7,500,000 — cash to the seller Price Per S.F. of Land: Price Per S.F. FLR: Comments: $428.57 $23.81 This December, 2011 sale involved a corner parcel that is improved with the Rosinelo restaurant and market. These one and two story structures were built between 1933 and 1963. The buyer is a New York hotel developer that reportedly intends to build a boutique hotel at this location. However, no permit application has yet been received by the City. Submitted into the public record � connection with • ,;.tr.lcf t 'temge. ti on T„ / L4 City Clerk 31 13-2253 Land Sale No.: 2 Location: Sale Date: Grantors: Northwest corner of S. W. 7 Street and South Miami Avenue, Miami April 24, 2012 South Miami Properties, Ltd; Michael P. Latterner, Patrick Gleber, and Fred Rawicz; and Tobacco Road, Inc. Grantees: Tobacco Road Property Holdings, LLC O.R Book and Page: 28088/1522, 1566, 1600, and 1636 Folio Nos.: 01-0205-030-1 1 10, 1120, 1130, 1140, 1150, 1160, 1 170 and 1 180 Site Size: Zoning: Floor Lot Ratio (FLR): 1.138 acres, or 49,578 S.F. (total) T6-48 B-O 11 Submitted into the public record in connection with item14t.t/ on City Clerk 32 13-2253 Maximum Permitted FLR: 545,358 S.F. Sale Price and Terms: $12,450,095, cash to the sellers (total) Price Per S.F. of Land: $251.12 Price Per S.F. FLR: $22.83 Comments: This transaction involved four simultaneous closings with three sellers and the one buyer. The property is located across S.W. 7 Street to the north and across South Miami Avenue to the west of the Brickell CitiCentre development. This site is improved with several one- and two-story commercial buildings including the River Oyster Bat restaurant and Tobacco Road, the oldest bar in Miami. The buyer reportedly does not have near term plans to redevelop this property (Tobacco Road's lease was recently extended for three years with two one-year options). An official of the Miami Planning Department reported that there have not been any requests for development approvals. Submitted into the public record in connection with I?F item Kr..44G on lq/li City Clerk 33 13-2253 Land Sale No.: 3 Location: Northeast quadrant of South Miami Avenue and S.E. 6 Street, Miami Sale Date: Grantor: Grantee: May 2, 2012 Miami Retail LLC Brickell North Squared LLC (Swire) Folio Nos.: 01-0210-060-1270, 1280, 1290, 1300, 1310, 1320, and 1330 Site Size: 42,811 S.F., or 0.983 acre Zoning: T6-48B-O Floor Lot Ratio (FLR): 18 Maximum Permitted FLR: 470,921 S.F. Submitted into the public record in connection with item ,zE on City Clerk 34 13-2253 Sale Price and Terms: Price Per S.F. of Land: Price Per S.F. FLR: Comments: $8,200,000, cash to the seller $191.54 $17.41 This is a one-year old purchase of a full city block fronting South Miami Avenue one block north of the Brickell Citicentre development. Swire, developer of Citicentre, purchased the property but reportedly has no immediate plans to improve the site. It is presently used as a staging area for the Citicentre construction. Submitted into the public record in connection with Item pFl�ton, /Iy r City Clerk 35 13-2253 Land Sale No. 4 Location: Southeast quadrant of South Miami Avenue and the Miami River, Miami Sale Date: Grantor: Grantee: June |5,2U\2 Miami Retail Partners, LLC Miami River Holdings, LLC O.R. Book JL Page: 28153/1079 Folio Nos.: U|-02|0'060-|350and 1340 Site size: l 10`082 S.F. Zoning: T6'488'0 Floor Lot Ratio (FLR): 18 Maximum Permitted FLR: 1`981,476 S.F. Submitted into the public record in connection with —~ ite �'�. LLYO 36 8-2253 City Clerk Sale Price & Terms: $28,200,000 — cash to the seller Price Per S.F. of Land: $256.17 Price Per S.F. FLR: $14.23 Comments: This is an 11 month old sale of a Brickell area parcel fronting the south side of the Miami River. Despite its South Miami Avenue frontage access to this property is considered poor. The South Miami Avenue bridge over the river terminates to the south of this site so there is no direct access from South Miami Avenue. This property was purchased by a real estate investor from Colombia who has acquired a number of other sites in the Brickell area in recent years. The seller, an entity affiliated with New York based Millennium Partners, had planned a large mixed use project with residential towers, retail space, and a movie theater. That development was newer started and the site remains vacant. This property is located just north of Swire Properties' massive CitiCentre development. Submitted into the public record in connection with item eif i`, on 5///t.. City Clerk 37 13-2253 Land Sale No. 5 Location: Southeast corner of S.E. 10 Street and S.E. 1 Avenue, Miami Sale Date: Grantor: Grantee: July 9,2012 Henry B. Bush (40.38%), Ricardo Bajandas (40.38%), and 1000 Brickell Avenue 11, LTD (19.24%) 1010 Brickell Holdings LLC O.R. Book & Page: 28181/2507 Folio No.: 0 I -0209-090-1480 Site Size: 31,794 S.F. Zoning: T6-48B-O Floor Lot Ratio (FLR) : 18 Maximum Permitted FLR: 302,231 S.F. (includes development rights from adjoining 1000 Brickell Avenue office building) Submitted into the public record connection with Item 2t.++ on 5/5/// City Clerk 38 13-2253 Sale Price & Terms: Price Per S.F. of Land: Price Per S.F. FLR: Comments: $1 1,500,000 $361.70; $614.42 including all costs (see comments) $38.05; $64.64 including all costs (see comments) This is a 10-month old sale of the 316-space parking garage for the condominium office building at 1000 Brickell Avenue. The purchasers intend to build a high rise residential building on the site. This development site came with development rights from the 1000 Brickell Avenue office building. In order to redevelop this site the purchaser will have to raze the existing parking garage and provide alternative parking for the owners and tenants in the 1000 Building as well as parking for the proposed high rise. The demolition cost is estimated at $12 per square foot, or $1,085,000 (90,330 S.F. x $12) and the cost to build a new garage on the site is estimated at $22,000 per parking space, or $6,950,000 (316 spaces x $22,000). The buyer's total cost for a vacant development site is calculated as follows: Purchase Price: $ 11,500,000 Garage Demolition: $ 1,085,000 Garage Replacement: $ 6,950,000 Total: $19,535,000 Submitted into the public recVbn connection with Item j E.11 on [3/g/it/ City Clerk 39 13-2253 Sale Date: Grantors: Grantees: O.R Book and Page: Folio No.: Site Size: Zoning: Floor Lot Ratio (FLR): Maximum Permitted FLR: Land Sale No.: 6 Location: Southeast corner of N.W. 8 Street and Arena Boulevard (N.W. I Avenue), Miami October 3, 2012 Arena Ventures, LLC Old Arena, LLC 28300/1569 01-3137-025-0011 4.714 acres, or 205,353 S.F. T6-60A-O 2,258,883 S.F. Submitted into the public record in connection with .item*. on 6-pti - City Clerk 40 13-2253 Sale Price and Terms: $35,000,000, - $1 1,000,000 (31%) cash down and the seller took back a $24,000,000 purchase money mortgage Price Per S.F. of Land: $] 70.44 Price Per S.F. FLR: $15.49 Comments: This is the late 2012 sale of the old Miami Arena site at the edge of the Overtown area. It is located directly across N.W. 1 Avenue from the Overtown/Park West Metrorail station. Although the owner has not yet made application for a development permit, recent articles in the newspaper indicate the buyer envisions a 58-story, 1,800-room hotel with about 500,000 square feet of meeting, banquet, and restaurant space. A 2,300- vehicle parking garage is also planned. Submitted into the public record in connection with 'items li°1 on City Clerk 41 I3-2253 Land Sale No. 7 Location: Southwest corner of South Miami Avenue and Coral Wuv(S.VV. 13 Miami Sale Date: October 30,20|2 Grantor-. South Miami Avenue, LLC Grantee: PRH 1300S. Miami Avenue, LLC O.R. Book & Page: 28331/3540 Folio Nos.: 01-0209-050-1010, 1020, 1020` 1170, ||7l`and |180 Site Size: 55,817S.F. Zoning: T0-48B-] Floor Lot Ratio (FLI<): 18 Maximum Permitted FLK: 1,006`506S.F. Submitted into the public Numne��nw� x~*'" itemre.// on 51SH City Clerk 42 13-2253 Sale Price & Terms: $18,500,000 — cash to the seller Price Per S.F. of Land: $330.85 Price Per S.F. FLR: $18.38 Comments: This corner parcel was to be the site of a twin condominium tower adjacent to the 459-unit Infinity I. Zoning approvals were obtained in 2005 for up to 589 residential units in 65 stories on this parcel. The grantor on this sale purchased the property in January 2010 for a price of $8,350,000, or $149 per square foot. A 2005 sale of the property was for $19,470,000, or $347 per square foot. The buyer is presently in the application process to develop 450 condominium units, 139 hotel rooms, and 15,000 square feet of retail uses in a 5I-story structure. This proposed development has not yet been approved. Submitted into the public record in connection with Item Kf.Qr on 5) 61 IL) City Clerk 43 13-2253 Land Sale No.: 8 Location: Southeast quadrant of South Bayshore Drive and S.E. 12 Street, Miami Sale Date: Owner: Folio No.: Site Size: Zoning: Floor Lot Ratio (FLR): Maximum Permitted FLR: Recent offers TWJ 1201 LLC (Tibor Hollo) 01-4139-071-0010 2.49 acres, or 108,464 S.F. T6-48A-O 1,193,000 S.F. Submitted into the public record in connection with • item Ep `o on 518f 1Li City Clerk 44 13-2253 Offered Prices: A) $130,000,000 and B) $150,000,000 Price Per S.F. of Land: A) $1,198.55 and B) $1,382.95 Price Per S.F. FLR: A) $108.97 and B)$125.73 Comments: This vacant site fronts along Biscayne Bay one block east of Brickell Avenue. The 2.5- acre site adjoining to the south is improved with a luxury condominium building known as The Jade. This property was apparently not listed for sale but Mr. Hollo received two offers to purchase, both of which he refused. He now has the site listed for sale for $225 million - $2,074 per square foot of land and $188.60 per square foot of FLR. Submitted into the public record in connection with t?4. Jd .'y item �E, on 5/ f / City Clerk 45 13-2253 Land Sale No.: 9 Location: Southeast corner of South Miami Avenue and S.E. 8 Street, Miami Sale Date: Owner: Offerors: Recent offers 1000 Brickell LTD Various Folio Nos.: 01-0205-050-1040, 1050, 1060, 1065, 1070, and 1080 Site Size: 46,000 S.F., or 1.056 acres Zoning: T6-48B-O Floor Lot Ratio (FLR): 18 Maximum Permitted FLR: 828,000 square feet Submitted into the public record t°in connection with itemgc.ion 5/51t1-1 City Clerk 46 13-2253 Offer Prices: $25,000,000 - $27,500,000, cash to the seller Price Per S.F. of Land: $543.48-$597.83 Price Per S.F. FLR: $30.19-$33.21 Comments: This is a very well located vacant corner site owned by Miami developer L. Allen Morris. The parcel is located across South Miami Avenue from the Brickell Citicentre development. The owner intends to develop the property either individually or with a joint venture partner. The site has not been listed for sale but four recent offers from other developers have ranged between $25.0 and $27.5 million. The T6-48B-O allows a wide array of commercial and residential uses. The recent offers were based on construction of residential units (rental and condo) with ancillary retail uses. One of the offerors envisioned a 425-unit rental apartment development and another a 500-unit condo project. Both offers were based on using essentially all of the 828,000 square feet of FLR. Total useable space for both would be about 70 percent of total building area with parking comprising the remaining 30 percent. Submitted into the public record in conn ct on with item i i on 5 $ it,) 47 13-2253 City Clerk St @AV Tel Ms 933 s.6,1 N'u'V 14th St 4-K, Exit 5A z. Gibson ca., Park a NW 12th S't •NW 11th St •- - r NV/ 10th Alk, Qqh 41 4,5 > -7"- * 4'4 Q. -7--- • NW 4th St — N\i'V 3rd .S1 ' to > z, 53' > .1 Willagler 31 SW- 1st. St 1,73 SW end St co ▪ SW 3rd St cip SW 4th Stal zo 7 a 968 a NW 'Ilth StI NW t3th St NW 901 SI NW 5th St NW 5th St A41/ F4ag0- St St. -t- .c1-3 SW 5th St :, _ 933 C„:i z.,-- a :h St -e. > • 441 (1 - .41 St - cc Jth St SW 10Ih St 'lth St SW tittl St 2th- St CFI CD ,;• 5:1 1{. NE 11th -51 E NE •10tr1 St ;,• NE s3t1i St QD• t54ri 3rd St rE NE '4 ! .c...7 Exit NW 1st St IJE .-.:•-.::- A 0 El 13 6-- o • V./ glagleo St E flagler St i-95 E>it 4 0 : 968 [ 1 sSEthast E 41dSt: Miami@ ur-., F;!,/V .2nd St '0.5 Exit 3 SE 3h1 St -5 _0 1 Bicentennial Park SW 9th St SW 10th St SW 11th St tp, te- .4> -3• 4 4;'• Submitted into the public record in connection with itemV, it on 5/ Sji City Clerk rf L.11 CD z..- St • 1 :_t.... I 1 :41 90 <.- OD [3101Z SW gtri St _., ...,...e$ SW 10th St =4- w...1 0 II 0 o< .g Exit', rl Cal rn Er 0 p._) , •a , v0 pot E(vd > ? % CO cE; Ct, ElaysKie ilkarket dth St Place `1111-133, 3rd St a 2.cl d S tit Elm '1St Zt o 131 ij• Coral Way 1972- 0 -1 7.11/St a. 0 „A—AE 6th St Ur) 6 *Miami Convention and Visitors Burea LAND SALES LOCATION MAP 0 41 c) Miami (") Airpo Watson Island Park SUBJECT seaplanCe.ealkge' 886 _ • Ive ta 'Port of Miami 6310, 41 4 Mini Ci 4 y e 48 13-2253 Sale No. Location SUMMARY OF LAND SALES Price/S.F. Price/S.F. Sale Date Site Size (S.F.) FLR Land FLR 1 Northwest corner of South Miami December 2011 Avenue and S.W. 11 Street, Miami 2 Northwest corner of S.W. 7 Street and April 2012 South Miami Avenue, Miami 3 Northeast quadrant of South Miami May 2012 Avenue and S.E. 6 Street, Miami 4 Southeast quadrant of South Miarni Avenue and the Miarni River, Miami 5 Southeast corner of S.E. 10 Street and S.E. 1 Avenue, Miami 6 Southeast corner of N.W. 8 Street and Arena Boulevard (N.W. I Avenue), Miami 7 Southwest corner of South Miami and Coral Way (S.W. 13 Street), Miami 8 Southeast quadrant of South Bayshore Drive and S.E. 12 Street, Miami 9 Southeast corner of South Miami Avenue and S.E. 8 Street, Miami Submitted into the public record i n connection with o item RE. ru on 5/S'jI4 City Clerk June 2012 July 2012 October 2012 October 2012 Recent offers Recent offers 17,500 49,578 42,811 110,082 31,794 205,353 55,917 108,464 46,000 18 Comment S424 $23.81 Planned for boutique hotel $251 $22.83 Tobacco Road property. No near term development plans 18 $ 192 $17.41 Swire purchased to stage construction for Brickell Citicentre 18 $256 $14.23 Riverfront site with circuitous 18 $614 $64.64 $170 $15.49 18 $33 I $18.38 11 $1,199 $108.97 $1,383 S 125.73 18 $543-$598 $30.19- $33.2 I access Improved with a parking garage that is to be razed and rebuilt for adjoining condo office building Site of former Miami Arena. To be improved with 1,800-room hotel. Buyer planning residential condos and hotel rooms Bayfront site. Probably a condo development in the future Well located site; not on market; recent offers from residential developers 49 13-2253 b. Analysis and Land Value Conclusion The seven sales and the recent offers for two other properties detailed on the previous pages are summarized on the facing table. The sales have been analyzed on the basis of sale price per square foot of land area and price per square foot of buildable area (FLR). Except for No. 6, the sale of the former Miami Arena site in the Overtown/Parkwest area, the sales and offers all involve sites in the Brickell area. They are all located within the City of Miami and are all similarly zoned as the subject. One of the primary differences is the allowable densities at the various properties. As indicated, Nos. 2, 6, and 8 all have maximum allowable FLR's of 11, or one more than the subject's 12. The other six have FLR's of 18 which allows greater development density. Generally, the lower the FLR the lower the price per square foot of land but the higher the price per square foot of FLR. Conversely, the higher the FLR density the higher the price per square foot of land and the lower the price per square foot of FLR. An important consideration in this analysis is that under the City's Miami 21 zoning ordinance the allowable FLR includes building area attributed to parking garages. This is significant because the prices per square foot of FLR of the sale properties include parking garage areas while the development rights analyzed in this report are for useable/rentable building area exclusive of required parking. As such, the sales must be adjusted for this inclusion of parking garage building areas. Parking requirements in the City's zoning ordinance differ depending on the land use. For instance, parking for retail and office development is greater than for hotel and multifamily residential uses. For instance, the proposed parking garage areas for the two residential uses (one rental, one condo) at Sale Property 9 would both have been approximately 30 percent of the total gross building area. The Allen Morris Company is a major land owner and developer in the Brickell area. Larry Rentz, a very knowledgeable representative of the company, reported office building developments in the Brickell area typically allocate about 40 to 45 percent of total building area to parking garages. On this basis the prices per square foot of FLR of Sales 1 and 6-9 are all adjusted 30 percent for parking garages while Nos. 2-5 are each adjusted 40 percent. The adjusted prices per square foot of FLR are calculated below. Submitted into the public record in connection with itemVt on 5j SI I1I 50 13-2253 City Clerk Adjustments For Parking Garages Sale No FLR Unadjusted Price/S.F. FLR Adjustment Adjusted Price/S.F. FLR 1 18 $23.81 30% $34.0 2 11 $22.83 40% $38.05 3 18 $17.41 40% $29.02 4 18 $14.23 40% $23.72 5 18 $64.64 40% $107.73 6 11 $15.49 30% $22.13 7 18 $18.38 30% $26.26 8 11 $ 108.97-$125.73 30% $155.67-$179.61 9 18 $30.19-$33.21 30% $43.13-$47.44 The adjusted prices above reflect the prices pe.r square foot of useable/rentable building area that developers are actually paying for land in the Brickell area. This provides an "apples to apples" comparison to the development rights that are the subject of this appraisal assignment. As indicated, the adjusted FLR prices of the nine sale properties range widely from about $22 to $180 per buildable square foot. The three most significant determinants of value in this market are date of sale/market condition, location, and FLR. Date of Sale/Market Conditions The market for Brickell area land has been strengthening substantially during the last 12 to 18 months with land prices escalating at rates not witnessed since the last boom period. The best examples are the recent offers for Nos. 8 ($ I ,199-$1,383/S.F. of land) and 9 ($543-$598/S.F. of land). Accordingly, Sales 1-7 are all adjusted upward for sale date/market conditions. The recent offers are not adjusted. Location Sale Property 6 is located in the Overtown/Park West area. This is an inferior location so downward adjustment is necessary. Except for No. 8, the other seven sale properties are all located in the Brickell area but without water frontage. Views from the upper floors of the hotel rooms at the subject property will have good unobstructed views of the Miami skyline, Government Cut, the Port of Miami, Biscayne Bay, and the ocean. However, access to the subject location is somewhat circuitous. The Brickell area sale properties will offer water and city views but will mostly be at least somewhat obstructed. However, the Brickell sites are near the activity hub of Mary Brickell Park as well as the Brickell employment center. Both the subject site and the Brickell area sites have positive and negative features. Overall, they are considered generally similar in appeal so these sales are not adjusted for location. Submitted into the public record in connection with F. to j tem aem on .5N14 City Clerk 51 J3-2253 Number 8 is located in the Brickell areas but has direct water frontage. This is considered to be overall superior so the offered prices of this property require downward adjustment. FLR As previously addressed, generally the lower the allowable density the greater the price per square foot of FLR and visa versa. As such, the sales involving parcels with FLR's of 18 are adjusted upward. The subject site has an FLR of 12 which is only nominally greater than 11. Therefore, the sales with FLR's of 11 are not adjusted. C. Land Value Conclusion The adjustments discussed above for the sale properties are summarized on the adjustment grid on the following page. As indicated, the offered prices for No. 8 ($156-$I80/S.F. FLR) require overall downward adjustment while the prices of the other eight ($22-$I08/S.F. FLR) all require upward adjustment. Sale 5 ($I08/S.F. FLR) is a bit of an aberration because the indicated price includes the costs to demolish an existing parking garage that is used by an adjoining property and replace the parking for that building. Therefore, little weight is placed on this sale. Excluding Sale 5 the price range for the sales requiring overall upward adjustment narrows to about $22-$47 per square foot of FLR. Giving consideration to all of the above, the development rights for the additional building area at the subject property are concluded to have a market value of $45 per square foot of FLR, or $17,100,000. 380,000 S.F. FLR x $45/S.F. FLR = $17,100,000 Submitted into the public record in connection with • 05 iteme `1j on 5j it1 City Clerk 52 13-2253 LAND SALES ADJUSTMENT GRID Adjustments* Sale No. Sale Date Location FLT Price/FLR Sale Date Location FLR Overall 1 December 2011 Northwest corner of S. Miami Avenue and S.W. 11 Street 18 $34.0I + = + + 2 April 2012 Northwest corner S.W. 7 Street and S. Miami Avenue 11 $38.05 + = _ + 3 May 2012 Northwest corner S. Miami Avenue and S.E. 6 Street 18 $29.02 + = + + 4 June 2012 Southeast corner S. Miami Avenue and Miami River 18 $23.72 + = + + 5 July 2012 Southeast corner S.E. 10 Street and S.E. 1 Avenue 18 $107.73 -I _ + + 6 October 2012 Southeast corner N.W. 8 Street and Arena Boulevard 11 $22.13 + - = + 7 October 2012 Southwest corner S. Miami Avenue and Coral Way 18 $26.26 + = + + 8 Offers Southeast quadrant S. Bayshore Drive and S.E. 12 Street 11 $155.67- $179.61 = - = - 9 Offers Southeast corner S. Miami Avenue and S.E. 8 Street 18 $43.13-$47.44 = = + + * + signifies upward adjustment - signifies downward adjustment = signifies no adjustment Submitted into the public I record in connection with itemPE uu on f/P- City Clerk 53 13-2253 2. Capitalization Rate In order to derive the market rent appropriate for the analyzed development rights a land capitalization, or return, rate is applied to the market value of the rights. Various leases were reviewed for this including leases with municipalities in Miami -Dade County, Miami International Airport, Fort Lauderdale -Hollywood International Airport, and private leases. Also considered were recent land lease capitalization rate surveys by RealtyRates.com. This data is summarized below. Leases From Municipalities Lessor Lessee Land Area (S.F.) Rent Per S.F. * Rent % of Value Miami -Dade County Green Dadeland Station 461,736 $.65 5.0% City of Coral Gables Rouse — Coral Gables, Inc. 365,904 $1.09 7.3% City of Coral Gables Merrick Center 115,434 $.43 4.4% * Based on the first year of income after construction Airport Leases Airport Lessee Land Use Site Size Rent As % of Land Value Miami International Airport Various Hangers, cargo storage, maintenance Various 7% Fort Lauderdale —Hollywood International Airport Various Hangers, cargo storage, maintenance Various 10% Submitted into the public record in conne ion with • temf4�t,on 5(! City Clerk 54 13-2253 Private Leases Location Lessee Land Use Site Size Rent Per S.F. Rent % of Land Value 3355 N.W. 22 Street, Miami Alamo/Enterprise Car Rental Rental car storage 6.4 acres $3.17 Asking 7.0% 2301 N.W. 33 Avenue, Miami National Car Rental Rental car storage 7.3 acres $2.45 Asking 7.4% S.W. 212 Street and S.W. 157 Avenue, Homestead McDonald's Fast food restaurant 1.1 acres $1.85 6.2% 10603 N.W. 12 Street, Doral TD Bank Branch bank 1.3 acres $5.70 5.2% 10760 Biscayne Boulevard, Miami Chase Bank Branch bank 0.9 acre $6.13 6,5% NEC S.W. 8 Street and S.W. 12 Avenue, Miami CVS Drugstore 2.2 acres $7.55 6.0% 17455 Biscayne Boulevard, N. Miami Beach P.F. Changs Restaurant 2.8 acres $1.50 6.0% RealgRates_com INVESTOR SURVEY - 1st Quarter 2013' LAND LEASES Proper tg Tgpe Apartments Golf Health Care?Senior Housing Industria I Lodging Mobile H ornerRV Park. Office Restaurant Retail Self -Storage Special Purpose All F'roperties Capitalization Rate., Ois•;ouut Rates Min_ Max_ Aug. Min_ Max_ Avg_ 1.75% 10.50% 5.99% 4 35x 11.00% 8.99% 2.25% 15.15%. 8.70 % 4.85% 15.65%, 9.70% 2.50% 11.87% 6.48% 5.10x 12.37x 7.48% 2.10% 10.50% 6.06% 4.70% 11,00% 7.08% 2.25> 14.91% 6.84 x 4.85% 15.41% 7.84% 2.04% 11.87% 7.14% 4.64% 12.37% 8.14% 2.10% 10.50% 6.60% 4.70% 11.00 < 7.60% 3.15% 15.17% 7.86 r. 5.75% 15.67% 8.86% 1.80% 10 81% 6.20 % 4.40% 11.31% 7.20% 2.10.% 10.50% 8.26% 4.70% 11.00% 8.26% 3.05% 15.05% 7.98% 5.86% 17.82% 8.77! 1.75% 15.65% 7.10% 4.35% 15.67x 8.02% '4th Guar to 2012 Data Copyright 2013 PlR.comTM Submitted into the public reco� ddrin connection with •ItemeE.0 on18//y City Clerk 55 13-2253 Realt!Rates.com INYES 'fll StiRYEY - 2nd Quarter 2013` LANUIL EASES Property Type Apartments Golf Health CarelSenior Housing Industria I Lodging f++lobileHorneIRV Park. Office Restaurant Retail Self-Sto rage Special P urpose All Properties Capitalization Rates Discount Rates Min_ 2.00% 2.58 ���r. 2.20%. 2.10% 254% 2.101 2.2ir/. 3.10% 2.10% 3.30% 2.00% Max_ 10.50 15_48% 10.50% 15.24% 12.20% 10.50% 15.50% 10.50% 10.50% 15.98% 15.981. Aug_ Min_ 6.1 /. 4.60% _57 % 5.18% 6.66 % 4.80%. 6.27 % 4.70% 7.00/. 5.18'/. 77.31 % 4.70% 6.65 % 4.80% 3.06 % 5.70/. 6.39 % 4.70% 8.43 % 5.00% 8.10% 6.02% 7.24% 4.60y. Max. Avg_ 11.00; . 7.18% 15.98% 9.57% 12.37% 7.613% 11.00': 7.27% 15.74% 8.00% 12.70% 8.31% 11.00% 7.65%. 16.00% 9.06% 11.00% 7.39% 11.00% 9.43% 1:3.08r 8.98% 18.00%. 8.15 '1ct G!uarter 2013 Data Cop Aright 2013 F:caltyRates.comT" The information presented above indicates land leases from municipalities in Miami -Dade County reflect capitalization or return rates of 4.4 to 7.3 percent, leases at the Miami and Fort Lauderdale airports seven to ten percent, and private leases 5.2 to 6.0 percent with two sites currently on the market at rates reflecting 7.0 and 7.4 percent. The RealtyRates.com survey indicates land lease capitalization rates have fluctuated somewhat over the last two quarters. Most pertinent to this analysis are the following rates for private party leases. Land Capitalization Rates Property Type 1`r Quarter, 2013 2"d Quarter, 2013 Lodging 2.25- 14.91 % 2.58- 15.24% Restaurant 3.15-15.17% 3.10-15.50% Retail 1.80-I 0.81 % 2. I0- 10.50% The range in land capitalization rates is obviously quite wide. The private leases for small sites used for drugstores, banks, and restaurants center on about six percent. The risk for a small site with a high credit rating is considered to be less than for a large development like the subject. The asking rent for two rental car properties similar in size to the subject site are Submitted into the public record in connection with • itema.g.li on 5/VA) City Clerk 56 13-2253 7.0 to 7.4 percent. Both are occupied by national credit tenants. The leases from the municipalities range from 4.4 to 7.3 percent but these are older leases. Very recent land leases at the two largest South :Florida airports range from seven to 10 percent. All of the land lease data was given thorough consideration. It is our opinion that a reasonable land capitalization rate in this instance is 7.0 percent. 3. Value Indication Applying the 7.0 percent land capitalization rate to the estimated value of the additional subject development rights indicates a market rental rate of $1,197,000. Estimated Valued of Additional Development Rights: $ 17,100,000 Land Capitalization Rate: x .07 Indicated Market Rent: $ 1,197,000 This is equivalent to a rental rate of $3.15 per square foot of buildable area. D. Income Approach The long term ground lease of the appraised property between the City of Miami and Flagstone includes a provision for percentage rent. Our research has identified other leases of public land to private developers which include a percentage rent provision. These leases are summarized in the table on the following page and typically provide for a stabilized base rent (after initial year step ups) and a percentage rent provision. As indicated, the percentage rent provisions in the summarized leases range broadly and include both percentages of gross revenues as well as percentages of specific net cash flow calculations. Those leases based on a percent of gross revenue provide for from two to 10 percent of gross revenue. Among these leases, those at the low end of the range (2 to 3 percent) are hotels and apartments and are based on total gross income including food and beverage, miscellaneous, parking, etc. Those leases at the upper end of the range (10+ percent) are marina related. The central tendency of these leases is five to six percent of revenue and include retail centers similar to that proposed for the appraised property. This appraisal is to estimate the ground rent applicable to the addition of 275,000 square feet of retail space and 105 hotel rooms to the original development plan for the property. In projecting the potential gross revenue of these additional components we have considered our earlier discussion of the downtown Miami retail and hotel markets. This data indicated recent rents for upscale retail space in downtown Miami ranging from $30 to $100 Submitted into the public record in connection with item if on 4b/l`i City Clerk 57 13-2253 PERCENTAGE RENT GROUND LEASES Facility Location Land Area Lessor Term Stabilized Base Annual Rent Percentage Rent PAROT JUNGLE (Attraction) Watson island 19 acres City of Miami 60 years $502,000 Plus 5-6% of revenues BAYSIDE MARKET (Retail) Biscayne Boulevard on Bay 5-10 acres City of Miami 75 years $ I,000,000 Or 35% of net for distribution (2012 rent = 5.75% of rental income) THE PALACE (ACLF) Coral Gables 1.6 acres City of Coral Gables 99 years $237,500 Plus 2% of gross revenue GABLES GRAND (Apartments) Coral Gables 2.5 acres City of Coral Gables 99 years $200,000 Plus 3% of gross revenue DADELAND MARRIOTT (Hotel) Kendall 1.0 acre Miami -Dade County 90 years $280,000 Or 2.0% of gross revenue DAELAND STATION (Anchored Retail) Kendall 7.5 acres Miami -Dade County 90 years $400,000 Or 5.0-5.5% of gross revenue PROPOSED BROWARD CONVENTION CENTER HOTEL Broward County on Intracoastal 4.4 acres Broward County 99 years $250,000 Plus 2.0% of revenues GROVE KEY MARINA (Marina) Coconut Grove on Bay 5.2 acres City of Miami 2 years $516,600 Or 10.3% of revenues VILLAGE OF MERRICK PARK (Anchored Retail) Coral Gables 8.4 acres City of Coral Gables 90 years $550,000 Plus 20% of net cash flow after 1 1% preferred return BAYSHORE LANDING (Restaurants) Coconut Grove on Bay N/A City of Miami 50 years $277,500 Or 5.0 to 10.0% of gross revenue RUSTY PELICAN Key Biscayne N/A City of Miami 99 years $360,000 2.5-8% over $12,000,000 revenue Submitted into the public ec,ord i connection with item%,Iu on 5Nry City Clerk 58 13-2253 per square foot; with rents at the nearby Bayside Marketplace (also fronts Biscayne Bay) averaging approximately $65 per square foot. Occupancy rates among this retail space currently average 95+ percent. Available data on the downtown Miami hotel market indicate a recent average daily room rate of $ 190, compared to an average Miami Beach rate of $258. Four plus star facilities in these locations achieved significantly higher average daily rates. Annual hotel occupancy rates in downtown Miami have recently averaged 75 to 79 percent. Based on this data we believe the following calculations of stabilized retail and hotel revenue for the appraised property are reasonable. Retail Space Square Feet: 275,000 Average Rent/S.F.: x $65 Average Occupancy: x .95 Annual Rental Revenue $ 16,981,250 Hotel Rooms Rooms: 105 Days: x 365 Average Daily Rate: x $250 Average Occupancy: x .75 Annual Room Revenue: $7,185,938 Considering these projections of revenue comprise retail rent exclusive of CAM charges and hotel room revenue only, we believe an overall stabilized percentage rent averaging 5.5 percent is reasonable in this instance. On this basis the stabilized rent for the additional retail space and hotel rooms can be estimated as follows: Annual Retail Rental Revenue: $ I6,981,250 Annual Hotel Room Revenue: $ 7,185,938 Total: $24, 167, 188 Average Percentage Rent (5.5%): x .055 Annual Rent: $1,329,195 Rounded $1,330,000 This is equivalent to $3.50 per square foot of building area. Submitted into the public record in connection with item onS1SPN City Clerk 59 13-2253 E. Value Conclusions The two approaches presented herein indicated the following market rents for the additional 275,000 square feet of retail/restaurant space and 105 hotel rooms. Sales Comparison Approach: $1,197;000 Income Approach: $1,330,000 The two approaches indicate a rental rate range of about 11 percent. Given the differences in the two types of analyses, this is not considered a wide range. Each approach has strengths and weaknesses but they obviously support each other. Because the income approach more closely replicates the thought process and analysis a land lessee would conduct, it is given more weight in this instance. The conclusion of market rent for the development rights appraised herein is $1,330,000. The client has asked that the market rental rate be expressed as a base rent plus one percent of projected revenue. As previously calculated, total projected revenue associated with the additional development rights is $24, 1 67,188. One percent of this total is $241,000 (rounded). Deducting this amount from the total market rent of$1,330,000 indicates base rent of: Total Market Rent: Less I % percentage rent: Adjusted Base Rent: Therefore, the market rent conclusion is as follows: Base Rent: 1% Percentage Rent: Total Market Rent: CPT $1,330,000 $ 241,000 $1,089,000 $1,089,000 $ 241,000 $1,330,000 The base rental rate is assumed to increase annually per changes in the Consumer Price Index (CPI). Real Estate Taxes At the present time the property is not subject to real estate taxes because it is owned by the City of Miami. Should the Property Appraiser elect to assess and tax any part of the subject property in the future this market rent conclusion assumes the lessee is responsible for these taxes. Submitted into the public record in connection with itemdev on 5j,ILj City Clerk 60 13-2253 Additional FLR This analysis is based on 275,000 square feet of retail/restaurant space and 105 hotel rooms. The client indicated that the amount of additional retail/restaurant space may increase by 25,000 square feet up to a total of 300,000 square feet of additional space. The additional rent for 25,000 square feet more retail/restaurant space is calculated below to be $70,000 plus one percent of revenue. 25,000 S.F. x $65/S.F. x .95 = $1,543,750 Revenue Base rent = $1,543,750 x .045 = $ 69,469 Rounded $ 70,000 Submitted into the public record in connection with item aQ I i on 518 IN City Clerk 61 13-2253 VI. ASSUMPTIONS AND LIMITING CONDITIONS This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed. 4. The information furnished by others is believed to be reliable and, whenever possible, it was cross checked with another source. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. The plot plans, plats, maps, and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 10. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. Submitted into the public record in connection with ito tem1F..if on 5[94 City Clerk 62 13-2253 11. The existence of hazardous material, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of the existence of such materials within or near the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material within or near the property that would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. 12. The appraisal is intended to comply with the appraisal requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute. This appraisal report has been made with the following general limiting conditions: 1. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication. 3. The appraiser, by reason of this appraisal, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firrn with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. 5. Any value estimates provided in the report apply to the entire property, and any proration or division of the total into fractional interests will invalidate the value estimate, unless such proration or division of interests has been set forth in the report. Submitted into the public record in connection with item9 .0 on .5)1(111-1 City Clerk 63 13-2253 VII. CERTIFICATION 1 certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. 3. 1 have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved. 4. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 6. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, and the requirements of the State of Florida for state -certified appraisers. 7. No one provided significant professional assistance to the undersigned. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, the undersigned have completed the requirements of the continuing education program of the Appraisal Institute. 10. The use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. I I . Edward N. Parker has made a personal inspection of the property that is the subject of this report. Submitted into the public record VI connection with 'vtemrtE`rr on 5IJIc1 City Clerk 64 13-2253 It is the opinion of the undersigned that the additional development rights described herein have the following market rent, as of May 26, 2013: Edward N. Parker $1,089,000 plus one percent of revenue with annual CPI adjustments to base rent. Real estate taxes, if any, would be the responsibility of the lessee. If the total amount of additional retail/restaurant space increases by 25,000 square feet to 300,000 square feet the market rent would increase by $70,000 plus one percent of revenue. UgXaly+wed by Ed«aid N. Para• ON: cn'Edwa.dN Pa•kee o.a_ enn�4�a4»D1aW cum c-WS f)a1e l01l0i 11044107 611X1 Edward N. Parker, MAI State Certified General Real Estate Appraiser #RZ 144 Geoffrey D. Fkl1h UN rn-4ea(Ne, 0 rbaah. a. m,. Heath a�aa.,.a"1wXadtam.“U5 una J011M ll 09.0A. WOW Geoffrey D. Heath, MAI State Certified General Real Estate Appraiser #RZ1456 Submitted into the public record in connection with itemlluon 5181[9 City Clerk 65 13-2253 VIII. QUALIFICATIONS EDWARD N. PARKER, MAI Investors Research Associates, Inc. 5730 S.W. 74 Street, Suite 100 South Miami, Florida 33143-5381 Phone No.: (305) 665-3407 Fax No.: (305) 665-4921 Academic University of Alabama - B.S., Marketing University of Miami - M.B.A. Experience Mr. Parker began his career as a real estate consultant in 1972 with the Reinhold P. Wolff Economic Research Company in Coral Gables, Florida. As a staff analyst, he was responsible for the preparation of market feasibility studies, retail studies, economic use analyses, and site location studies. In 1974, Mr. Parker joined the Miami office of Real Estate Research Corporation (RERC), a wholly owned subsidiary of the First National Bank of Chicago. As a staff appraiser and analyst, Mr. Parker prepared appraisals of all types of income -producing properties located throughout the United States and the Caribbean. These valuations involved fee simple interest, leaseholds, partial interests, and going -concern valuations. He has also appraised a large number of special purpose properties including schools, marinas, resorts, and specialized manufacturing facilities. Mr. Parker's administrative responsibility at RERC included the coordination of the appraisal of the assets of two major Miami -based REITS during their orderly portfolio disposition. Mr. Parker also managed the annual ongoing portfolio appraisal of the properties comprising the First National Bank of Chicago commingled pension trust known as Fund F. In June, 1981, Mr. Parker joined Investors Research Associates, Inc. as a principal. The firm specializes in income property appraisals, highest and best use and market studies, as III as consultation services for major lending institutions, insurance companies, real estate syndicators, developers, pension funds and governmental agencies. Discounted cash flow and sensitivity analyses, as III as absorption studies are some of the services provided to clients. The firm has successfully completed a number of very complex valuation assignments involving environmentally sensitive wetlands including offshore island properties for private and public clients. Agricultural properties including row crop land, groves, and tree nurseries are another specialty. Mr. Parker's experience includes condemnation appraisals for both public and private clients. The public client list includes the Florida Department of Transportation, South Florida Water Management District, National Park Service, U.S. Department of Justice, Dade County HUD, Dade County Department of Facilities Management, and Miami -Dade Water and Sewer Department. Property types appraised for condemnation purposes include office buildings, retail stores, restaurants, service stations, banks, churches, apartments, vacant sites, agricultural (crop land and tropical fruit groves), and environmentally sensitive We tlands. Mr. Parker has qualified as an expert witness in Dade, Broward, Monroe and Duval County Circuit Courts, U.S. District Court, and U.S. Bankruptcy Court. He is also currently certified under the continuing education program conducted by the Appraisal Institute. Affiliations Member of the Appraisal Institute - MAI Licensed Real Estate Broker - State of Florida State Certified General Appraiser-0000144 Submitted into the public record in connection with item on 51— City Clerk 66 13-2253 Geoffrey D. Heath, MAI Academic London School of Economics, M.Sc., Economics University of Chicago, M.B.A., Finance Lehigh University, B.A., Finance Experience Before associating with E. Roger Budny in early 1988, Mr. Heath served as Senior Vice President of Real Estate Research Corporation as a specialist in the economics and appraisal of real estate. Prior experience includes Deputy director of all appraisal services for that firm. He has directed numerous major appraisal assignments throughout the country. They have included valuations of substantial commercial real estate portfolios for a variety of purposes including merger, acquisition, divestiture, and current value reporting. Mr. Heath has appraised a large number of special-purpose properties including schools, mobile home parks, marinas, resorts, and specialized manufacturing facilities. These valuations have involved fee simple interests, leaseholds, as well as partnership and partial interests. They have included both existing and proposed projects. Within South Florida, significant appraisals include: valuation of a major Dade County portfolio including a hotel and resort complex, 11 office buildings, 5 shopping centers, 31 industrial buildings, 5 apartment complexes, and 228 acres of prime land; a multiuse high rise comprising office, apartment and parking uses within the Jackson medical complex; the 1,200-room Fountainbleau Hilton Hotel; market rent assessments for 30 U.S. government offices and warehouses; and appraisals of 8 major mobile home communities with over 5,500 homesites. Mr. Heath has performed numerous economic and marketability studies for new suburban developments as well as downtown redevelopment. These assignments have involved the evaluation of retail potential, office space demand, and hotel and housing marketability. In addition, he has served as land disposition and economic consultant to a number of U.S. cities. Affiliations Appraisal Institute, MAI, Certificate No. 6090 Florida Real Estate Broker South Florida Chapter 24, Appraisal Institute (Board of Directors, Admissions Committee) State of Florida Certified General Appraiser No. RZ0001456 Submitted into the public record in connection with .item fi, ss t on 5 q City Clerk 67 13-2253 Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida PURPOSE OF THE APPRAISAL REPORT The purpose of this appraisal report is to estimate the "AS IS" Market Value and the Market Rent of the Fee Simple Interest of the subject property as of February 1, 2002. The term Fee Simple Interest is defined below. The terms Market Rent and Market Value are defined on following pages. SUMIUED INTO THE PUE3LIC RECORD FOR ITEM eE;° ON601. CLIENT, INTENDED USER AND USE OF THE SELF-CONTAINED REPORT The intended user of this appraisal is Ms. Laura Billberry, Director, Office of Asset Management, City of Miami, Florida (client). The intended use of this appraisal is for estimating the Market Value and the Market Rent in conjunction with Resolution No. 00-032 and RFQ No. 99-00-271 and with reference to Island Garden at Watson Island, R.F.P. DEFINITION OF INTEREST BEING APPRAISED The interest appraised herein is that ofthe unencumbered Fee Simple Interest, described as follows: Fee Simple Interest: an absolute fee without limitations to any particular class of heirs, but subject to the limitations of eminent domain, escheat, police power and taxation. An inheritable estate. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 19 GI'. 6 Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida DEFINITION OF MARKET RENT Estimated herein is the Market Rent, described as follows: Market Rent is the prevailing rental value for the demised space that would be leased as of a given date in an arm's length transaction. The term "Market Rent" shall mean the annual rentable square foot rate that a willing landlord would accept and a willing tenant would pay in a current transaction. The "Annual Rental Rate" shall be defined as the gross annual rental income the landlord is to receive each year from the tenant (over the lease term), including minimum or base rental rate plus additional rent in excess of the initial year's operating expense stop. The "Annual Rental Rate" is calculated as follows: (Gross Annual Rental Income _ Rentable Square Feet = ARR) (') (I) Appraisal and Real Estate Economics Associates (AREEA) WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS 20 Submitted into the public record in connection with item4E.tr on 513/14. City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida DEFINITION OF MARKET VALUE Market Value is the major focus of most real property appraisal assignments. Both economic and legal definitions ofMarket Value have been developed and refined. A current economic definition agreed upon by federal financial institutions in the United States of America is: The most probable price which a property should bring. in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised and each acting in what they consider their best interest; 3. a reasonable time is allowed for exposure in the open market;. 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale."' The above definition is suggested by FIRREA of 1989 - Title XI and its updates, the Uniform Standards ofProfessional Appraisal Practice (USPAP), the Appraisal Institute, the Federal Deposit Insurance Corporation and was the basis of the valuation in this appraisal. This definition can be found in Chapter 12, Code of Federal Regulations, Part 34.42 (P). I Uniform Standards of Professional Appraisal Practice, Copyright 1994, Pages 7 and 8. WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS 21 Submitted into the public record in connection with itema it on 1 Sf lid City Clerk Submitted into the public record in connection with itemr.,`,4 on 51 Y1(y City Clerk Island Gardens at Watson Island,1050 MacArthur Causeway, Miami, Florida SCOPE OF WORK For each appraisal assignment all three typical approaches to value are considered. These approaches to value are the cost approach, the sales comparison approach and the income capitalization approach. Depending on the property being appraised not all approaches may be applicable. The subject property is vacant land and the sales comparison approach is considered the only applicable approach to value. All appraisals begin by identifying the property to be appraised and the appraisal problem._ Data on the subject property is derived from various sources including but not limited to the property owner, the County Property Appraiser's office, surveys and building plans. When possible more than one source is utilized to confirm data. Within the appraisal the data source is acknowledged. Land size is based on surveys (when available), public records and recorded plats. Land measurements are not performed by the appraiser. All vacant land sales are inspected. Sale- prices are from public records. Prices are typically confirmed with a party to the transaction, i.e. buyer, seller, real estate agent, or closing attorney. Public records are investigated for mortgage information and terms. Research of comparables consists of searches utilizing Real Estate Data Inc. (REDI) and the International Systems Corporation (ISCNET) provided by The Land Office, Inc. Both companies reprint data from the County Property appraiser's office as well as data of recorded sales. This data. is then verified and formatted by the appraiser(s) into sale sheets located within the Addenda of this report. Other data sources utilized include newspaper clippings, the Board of Realtors' Multiple Listing Service, the Florida Real Estate Decisions, Inc., Tri-County Clipping Service and the National Multiple Listing Service. Real estate agents in the subject area were interviewed to supply up-to-date information of sales and listings. All information is analyzed in processing the appraisal report and as support for the indicated value. This appraisal assignment is to estimate the market value and the market rent for the subject property. These values are based solely on the development proposal by Flagstone Properties, LLC. Any change in the allowable density levels would cause a change in the values estimated herein. The reader of the appraisal should be made aware that the valuation herein is based on a specific date. Values can be volatile over time. The value estimated on the "Valuation Date" will likely differ from the value one, two or three years in the future. As would this value not be representative of the value one, two, or three years prior. Again the reader is advised to review the Approach to the Appraisal Problem, the Certificate of Value, Special Assumptions and General Assumptions and Limiting Conditions within the Introduction to the appraisal. WARONKER 8 ROSEN, INC. 4 REAL ESTATE APPRAISERS AND CONSULTANTS 22 1 Submitted into the public record in connection with item,E io eE.ii on 5/6/lc► City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LOCATION AND ADDRESS The subject property is located at the south side of Watson Island. Watson Island is located, with frontage on the MacArthur Causeway, between the mainland of the city of Miami and Miami Beach, Florida. It contains frontage along both Government Cut and the Intracoastal Waterway. Address: • 1050 MacArthur Causeway Watson Island Miami, Florida 33133 LEGAL DESCRIPTION No legal description has been provided by the client. This appraisal is based on the client's letter of engagement which indicates 10.8 acres of upland and 13.4 acres of bay bottom. The site plan prepared by Flagstone Properties, LLC was the basis for the location of the subject property. OWNER OF RECORD The Miami -Dade County Property Appraiser's records indicate ownership is held by The City of Miami, Florida HISTORY OF THE SUBJECT PROPERTY There have been no recorded sales of the subject property in the past five years. WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS 23 1 Submitted into the public record in connection with item€.ri on f t/ l`f City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida ZONING The subject is zoned C-1 (Restricted Commercial) and PR (Parks and Recreation) Districts, by the city of Miami, Florida. This appraisal is not concerned with the current zoning and is based solely on the density levels detailed within the development proposal by Flagstone Properties, LLC. FLOOD ZONE The subject property is located in unshaded Flood Zone AE. This identification was located on Flood Insurance Rate Map, Community Panel No. 12025C01835, revised March 2, 1994. For insurance purposes, a surveyor should be contacted to verify the exact zone by a flood elevation certificate, as well as its impact on insurance. A copy of the Flood Insurance Rate Map is located in the "Addenda" to this report. Source: www.floodinsights.com CENSUS 1RACT The subject property is located in Census Tract No. 37.02. Source: www.floodinsights.com WARONKER & ROSEN, INC,. d REAL ESTATE APPRAISERS AND CONSULTANTS 24 Submitted into the public record in connection with items,¢ .If; on cii/t y City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida SITE DATA The subject site is irregular. There is frontage along the southern side of the MacArthur Causeway, along the east side of the Intracoastal waterway and the south side of Government Cut. Per the client, the total area of the parcel is approximately 10.8 acres of upland and approximately 13.4 acres of bay bottom. A survey was not provided. The site is level and at approximate street grade. Utilities available to the site are: Electric Florida Power and Light Telephone BellSouth Water Miami -Dade Water and Sewer Authority Sewage Disposal Miami -Dade Water and Sewer Authority CITY OF MIAMI CONCURRENCY There are currently no conourrency prob] ems for the subject site which would hinder any proposed construction up to the allowable density, REAL ESTATE ASSESSMENT AND TAXES The subject property is owned by the city of Miami and, therefore is not assessed, nor is there any associated real estate taxes. Since the property is not subject to taxes, developers are sometimes required to pay a fee in lieu of taxes after the property has been developed. This analysis considers a similar payment. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 25 j Submitted into the public record 'n connection with item%1 k on 5/0ti City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida NEIGHBORHOOD DESCRIPTION The subject property is located within Biscayne Bay, between the CityofMiami and Miami Beach, on Watson Island. Access to the subject property is via the MacArthur Causeway which extends from the mainland to Miami Beach. This is the only roadway access to the subject parcel. Also located along the MacArthur Causeway are three islands that are all zoned for residential use. These islands are; Palm Island, Hibiscus Island and Star Island. Residences on these islands are some of the higher priced within Miami -Dade County, Florida. MacArthur Causeway extends easterly from the subject and connects to 5th Street in Miami Beach. Access to MacArthur Causeway from the mainland is from approximately N.W. 12th Street, or by Interstate No. 395. To the south and southeast of the subject is Dodge Island, home to the Port of Miami. At the Port of Miami are both cruise ships and cargo ships. This is an extremely active port which is visible from the subject property. The western portion of Dodge Island is comprised of passenger terminals for the cruise ships and with office buildings for the cruise ship lines and the port authority. The eastern portion of Dodge Island is comprised of container storage areas and offices for the cargo ships. To the north of the subject is the Venetian Causeway which accesses Biscayne Island, San Marco Island, Dilido Island, Rio Alta Island and Belle Isle Island. These small islands are comprised of single family residential, apartments and condominiums. The Venetian Causeway, like the MacArthur Causeway, extends from the mainland to Miami Beach. It is a toll road from 15th Street on the mainland to approximately 20th Street on Miami Beach. Downtown Miami is within one mile of the subject property and is easily accessible via Biscayne Boulevard (U.S. Highway No. 1).. Miami Beach is approximately three mules to the east and is accessed via the MacArthur Causeway. Miami International Airport is located approximately six miles to the west and is accessed via State Road 836 (a/k/a the Dolphin Expressway). Location of the subject near the Port of Miami, Miami International Airport, Downtown Miami and Miami Beach is a favorable characteristic. On the northern end of Watson Island, across the MacArthur Causeway from the subject, is the Parrot Jungle currently under construction. The Parrot Jungle is relocating from southwest Miami - Dade County. This is a tourist attraction that will be expanding it's operation to include conventions and large parties. The proposed development on the subject site should be a complement to the Parrot Jungle. Watson Island could become a destination Iocation for tourists. Plans for a water taxi and shuttle system to integrate Miami Beach, Watson Island and the Port of Miami would further serve to increase activity and attention to the subject development. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 26 Submitted into the public record in connection with Item%_c.ii on 5A/l1 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida SUPPLY AND DEMAND Proposed for the site are two hotels, retail uses, restaurants and marina slips, including mega -yacht slips. This appraisal is not concerned with the feasibility of the proposed development. A review of the proposal indicates that both the projected rent revenues and projected costs are aggressive, based on current market rates and construction of comparable developments. Since detailed plans were not provided, it is not known if there are construction details and amenities that would be cause for the higher projected development costs or rents. A supply and demand study was not prepared as the only allowable use to be considered for the subject property, at this time, is the proposal by Flagstone Properties, LLC. The proposed hotels have projected occupancy levels and ADR's (average daily rates) above current market levels. Until recent construction of high end hotels, Miami -Dade County lacked high quality hotels. These recently constructed hotels have not been able to achieve the desired levels. In addition, several more are under construction or planned. It is possible that in three to five years when the subject hotels are completed there will be greater market acceptance of these higher end hotels. The PricewaterHouseCoopers report (page 24) prepared to evaluate the three development proposals notes 1,821 new hotel rooms will be constructed by 0ctober2003. Further, they conclude that thisnew construction will put downward pressure on occupancies. The success of the retail, restaurant and marina components will be partly attributable to the ability to attract both tourists and locals to Watson Island. With the completion of the Parrot Jungle and the proposed Flagstone Properties development, Watson Island should become a destination location. Further there are plans to connect the Port of Miami, Watson Island and Miami Beach by a water taxi system. The rental rates proposedfor the retail, restaurant and marina are also at, or above the top end of the market rental range. Aiding in the success of the proposed development are plans for many events that are intended to attract tourists and locals. The success of these events and the ability to attract tourists will be necessary to maintain the attraction level of the proposed development. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS - 27 Submitted into the public record in connection with item 2,4!a on 5(V/y City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida REASONABLE EXPOSURE TIME Reasonable Exposure Time is always presumed to precede the effective date of the appraisal. Reasonable Exposure Time is the estimated length of time the property being appraised would have been offered on the market prior to a hypothetical sale at Market Value on the effective date of the appraisal. The actual exposure time may differ from Reasonable Exposure Time. Reasonable Exposure Time varies by type of real estate. A property may be exposed to the market for an. extended period of time if it is overpriced. This analysis considers Reasonable Exposure Time at a market related price such as the estimated Market Value of the Fee Simple Interest in this report. In estimating a Reasonable Exposure Time, conversations with real estate brokers and property owners familiar with the subject property and area were also made. The subject property would be desirable to a developer due to its very visible location along MacArthur Causeway which connects mainland Miami with the city of Miami Beach. Its desirability is enhanced due to the lack of any developable properties of this size having water frontage. It is estimated that a Reasonable Exposure Time for the subject, based upon the subject's location and size, would be less than twelve months. This considers that the property would have been properly marketed and priced. If the property were not to have been priced correctly or marketed through proper channels, then it is not likely that the estimated Market Value and the estimated Reasonable Exposure Time would have been achieved. TYPICAL PURCHASER OF THE SUBJECT The subject is a vacant site with large scale development potential. The immediate area of the subject neighborhood consists of a tourist attraction currently under construction (Parrot Jungle). It is believed that the typical user/purchaser of the subject would be a developer that desires to construct a mixed -use high density development. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 28 Submitted into the public record in connection with r1 E. itema. i rU i on 5/CM City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida HIGHEST AND BEST USE The site is valued for its Highest and Best Use, which may be defined as follows: "That reasonable and probable use that will support value as defined as of the effective date of the appraisal". In analyzing the Highest and Best Use, the appraiser answers the following four questions: A. Legally Permissible. What uses are legally permitted on the subject site with respect to zoning ordinancesand deed restrictions? B. Physically Possible. What uses ofthose legally allowed are physically possible on the subject site? C, Financially Feasible. Of those uses determined to be physically possible and legally permissible, which ones will produce a positive return? D. Maximally Productive. Ofthose that are feasible, legally permissible, and physically possible, which will produce the highest rate of return or value? The above four questions are answered in order. Legally Permissible: The subject property had been put out for a RFP (Request For Proposal). The request was for developers to bid on the subject property as to the density level and plan they would construct on the site. The legally permissible use of the site is the use as described herein. This appraisal is based solely on the Flagstone Properties proposal, which was the development that was chosen. This proposed use is considered the only legally permissible use and is the basis of this appraisal. Any change in the uses or density allowed will result in a change in the estimated value and market rent herein. Physically Possible: No soil conditions are known that would restrict construction on the subject site. WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS 29 Submitted into the public record «connection with item IK I ( on S/S/P-j City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Highest and Best Use (continued) Financially Feasible: Of those uses which are legally permissible and physically possible, a determination must be made as to which uses are most financially feasible. The Flagstone Properties proposal is the only use that is considered legally permissible. This use may or may not be a feasible use. The developer's proposal projected cash flows and projected costs were reviewed. The income projections are considered optimistic and aggressive. Further, the construction costs are considered above typical costs. To confirm feasibility, more realistic costs and projections would have to be prepared and full construction plans would have to be inspected. Since this is the only allowable use at this time, feasibility is not an issue. Maximally Productive: This is the use of all those that meet the above criteria which yields the highest rate of return or value. The maximally productive use would be one that constructs buildings of a mixed -use to the highest density allowed, considering what would be most feasible. CONCLUSION OF THE HIGHEST AND BEST USE As Vacant The highest and best use of the site would be for a mixed use development with a predominance of retail and hotel uses. The subject location in close proximity to downtown Miami, Miami Beach and its waterfrontage lends itself to tourist attractions and recreational uses. The location between the city of Miami mainland and the city of Miami Beach would also be desirable to prospective tenants. This appraisal is based solely on the Flagstone Propertiesproposal as being the only legally allowable use. Therefore, this use is the highest and best use. As Improved Not applicable. WARONKER & ROSEN, INC. d REAL ESTATE APPRAISERS AND CONSULTANTS 30 Submitted into the public record in connection with itemrCe, II on ,t/ /f V City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida APPRAISAL PROCESS An analysis of three separate approaches to value, sales comparison approach, cost approach, and income capitalization approach will be considered to estimate the value of the subject property. Although these three approaches to value are considered within every appraisal report, they may not be applicable to each and every property being appraised. The cost approach is based on the principle of substitution which states that an informed purchaser would not pay more for a property than the cost of reproducing a property with the same utility. The cost approach can often yield reliable estimates of value for new construction. This approach entails estimating the cost of producing the improvements, deducting an estimate of depreciation, then adding the value of the site as if vacant. To this value an entrepreneurial incentive is added to arrive at the estimated value by the cost approach. The income capitalization approach is based on the concept that value is created by the expectations of future benefits and higher earnings should result in higher values. Income producing real estate is purchased for the right to receive future income. The income capitalization approach consists of methods to analyze a property's capacity to generate income, and a reversion, and convert these monetary benefits into an estimate of value. The sales comparison approach is based on the principle of substitution which suggests that, within competitive markets, similar products will realize similar prices. Inherent in this concept is the premise that a purchaser .would not pay more for a property than the cost to acquire another property with the same amenities and utility. The final steps in the appraisal process are review and reconciliation of the data and conclusions. In reaching a final conclusion of value, the entire process involving the approaches that were estimated must be reviewed for accuracy, completeness and consistency. After analysis, evaluation and reconciliation of the indications a value is estimated. The essence of this final reconciliation should be a defensible and rational conclusion of value. The only approach used in this appraisal was sales comparison approach. The cost approach and the income capitalization approach were both considered not applicable to the valuation of vacant land. WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS 31 Submitted into the public record in connection with itemef onu City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COST APPROACH The basis of the cost approach is the principle of substitution. This principal suggests that a prudent buyer would not pay more for a property than the cost to acquire a similar site and construct comparable improvements. Following are the procedures for preparing the cost approach. 1. Estimate the value of the land as though vacant and available to be developed to its highest and best use. 2. Estimate the direct (hard) and indirect (soft) costs of the improvements on the effective appraisal date. 3. Estimate an appropriate entrepreneurial incentive (profit), from analysis of the market. 4. Add -estimated direct costs, indirect costs, and the entrepreneurial incentive (profit) to arrive at the total cost of the improvements. 5. Estimate the amount of accrued depreciation in the structure and, if necessary, allocate it among the three major categories: physical deterioration, functional obsolescence, and external obsolescence. b. Deduct the estimated depreciation from the total cost of the improvements to derive an estimate of their depreciated cost. 7. Estimate the contributory value of any site improvements that have not already been considered (site improvements are often appraised at their contributory value--i.e., directly on a depreciated -cost basis).. 8. Add the site value to the total depreciated cost of all the improvements to arrive at the indicated value of the property. 9. Adjust the indicated value of property for any personal property (e.g., fixtures, furniture and equipment) that may be included in the cost estimate and, if necessary, adjust this value, which reflects the value of the fee simple interest, for the property interest being appraised to arrive at the indicated value of the specified interest in the property.' As the subject property is considered unimproved vacant land, the cost approach is not applicable. Land value has been estimated in the sales comparison approach herein. The Appraisal of Real Estate, 1 lth Edition, 1997, Page 340. WARONKER & ROSEN, INC. 4 REAL ESTATEAPPRAISERSAND CONSULTANTS 32 Submitted into the public record in connection with pc to 'item Rfli on S City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida INCOME CAPITALIZATION APPROACH The income capitalization approach to value is based on the theory that the value of a property is the present worth of the net income(s) it will produce during the remainder of its economic life. A study is generally made of the rentals paid for comparable properties and adjustments are made for the differences between the rental comparables and the subject parcel. An income and expense analysis is prepared with a resulting estimate of net income. The usual method applicable is to capitalize the resulting net income into an indicated value. "In the valuation of income producing real estate, the typical purchaser is frequently an investor, seeking benefits in the form of rental income.... Value is typically viewed and measured as the present worth of the anticipated future income forecast to be derived from possession of ownership rights in the real estate." "The appraiser must forecast the most probable future benefits most likely to be receivable or anticipated by the holder of the rights being appraised. In appraising these probabilities are rarely rigidly defined in objective mathematical terms that permit the use of statistical forecasting devices. Rather, they are subjective probabilities... derived from the experience and judgements of market participants, as evidenced by their stated expectations and their market behavior. The probabilities are also conditioned by the appraiser's past experience and knowledge of market responses to similar conditions and trends." 2 The subject property is vacant land to which the income capitalization approach does not apply. Although rental income can be derived from vacant land, it is not generally purchased based on its income. The marina was valued based upon a residual approach as one method which estimates income from the area. ' Income Property Valuation, Wm. N. Kinnard, Jr., 1971, D.C. Heath & Company, Lexington, Mass., Page 34. 2 Ibid., Pages 111, 112. WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 33 Submitted into the public record in conn -cti.n with item e. ion .S IL City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida SALES COMPARISON APPROACH The sales comparison approach is based on the principle of substitution. The principle of substitution states that when several similar or commensurate commodities, goods or services are . available, the one with the lowest price attracts the greatest demand and widest distribution., This approach compares sales of comparable properties to the subject property. The sales are analyzed to indicate a value based upon market transactions of comparable properties. Sales are adjusted to the subject property for their differences. Adjustments can be made on a qualitative or a quantitative basis. Qualitative analysis is a relative comparison process without mathematics. Sales are ranked based upon their desirability as compared to the subject. Adjustments can be expressed based on plus or minus comparisons as opposed to dollar or percentage adjustments. Quantitative analysis is the process of applying mathematical techniques. Sales are adjusted to the subject property on a dollar or a percentage basis. One method of supporting adjustments is throughpaireddata analysis. This method analyzes two sales and attributes the difference in their sales prices to the characteristic which is different. This analysis requires an abundance of sales data which is frequently not available. Also required is sales that can be paired to extract these adjustments. Qualitative analysis is used herein to estimate a value by the sales comparison approach. This has been accomplished by ranking the sales with a plus or minus. Characteristics of the sales considered superior to the subject are given a minus (-) adjustment. Those characteristics of the sales considered inferior to the subject are given a plus (+) adjustment. Each sale is given an overall adjustment indicating how it compares to the subject. On the following page is a grid of the sales used for comparison. Following the sales grid is .a map indicating the location of the sales and the subject. This sales map is followed by data sheets for each sale. These data sheets detail the sales data and property data of the comparisons. After the sales data sheets is an adjustment grid which details the adjustments comparing the sales to the subject property followed by a conclusion of value by the sales comparison approach. The Appraisal of Real Estate 11th Edition, copyright 1997, page 43. WARONKER & ROSEN, INC. 0s REAL ESTATE APPRAISERS AND CONSULTANTS 34 COMPARABLE LAND SALES Following is a vacant land sales grid of the comparable properties used for comparison to the subject property. Sale ,s Sale ,..r L'oCabot% " Zploiri"` 'Sales Pclfie ': Sq.Ft. Size Price/ Sq.Ft Price/Buildable Sq t FAR t 10/00 1432 to 1460 Brickell Avenue & 1433 to 1485 South Miami Avenue Miami SD-5 $15,000,000 146,540 $10236 $18.42 5.56 2 4/00 2101 &2105 Brickell Avenue Miami R-4 $12,500,000 144,500 58631 527.46 3.15 3 10/99 520 - 540 west Avenue Miami Beach RM-3 $6,800,000 86,621 578.50 $2330 337 4 7/99 550 Brickell Avenue Miami SD-5 & SD-7 $9,800,600 55,321 $177.15 $12.25 14.46 5 7/99 60 Alton Road Miami Beach CPS-4 $15,200,000 192,496 $78.96 $30.49 2.59 6 4/98 50 South Point Drive Miami Beach CPS-3 S42,000,000 562,795 574.63 $3231 2.31 7 6/01 400 Alton Road Miami Beach CPS-4 $52,000,000 308,688 $168.45 $4727 336 8 10/00 Southeast Comer of S.E. 12°i Street and South Bayshore Drive/Brickell Bay Drive, Miami SD-5 $15,500,000 • 108,726 $142.56 $22.06 6.46 9 10/98 101 Ocean Drive Miami Beach RSP-4 $8,000,000 43,843 $182.47 $62,69 2.91 10 1/98 7360North Kendall Drive Miami BU-2 $11,700,000 277,564 $42.15 N/A N/A 11 1/99 7220 North Kendall Drive Miami BU-2 & BU-3 $12,875,000 218,933 $58.81 N/A N/A 12 12/01 1060 Brickell Avenue Miami SD-5 $10,520,500 77,581 5135.61 N/A N/A Subjicek!..: , ;: <, . 3/01`•, :: 1050'.i11aeAr'Ehar Causeway . Miami 470,448 (upland) • This site includes certain restrictions as noted in the sale data sheet. On the following pages is a data sheet for each land sale. WARONKER S ROSEN, INC, • REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with (ZE. rc 1tern f lion J J/ y City Clerk 35 Submitted into the public record in tonne Lion with ltemKF:ii on City Clerk VACANT LAND SALES MAP ROLM AOUn tun O 11 .. eomowc Acton mama WARONKER & ROSEN, INC. , REAL ESTATE APPRAISERS AND CONSULTANTS .26 Submitted into the public record in cdnnecti n with item j bn 5 » -- City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 1 Location: 1432 to 1460 Brickell. Avenue and 1433 to 1485 South Miami Avenue, Miami, Florida Date: October 2000 ORB/Page: 19347/0807 Grantor: Brickell Investment Realty Corporation Grantee: Park Place at Brickell, LLC Legal Description: The South % of Lot 8 and Lots 9 to 25, Block 99, MARY BRICKELLS ADDITION, as recorded in Plat Book B at Page 113 of the Public Records of Miami -Dade County, Florida; and a portion of Parcel S1-A and Lot 17 of MIAMI NORTH , as recorded in Plat Book B at Page 41 of the Public Records of Miami -Dade County, Florida. Zoning: SD-5, Brickell Avenue Area Residential - Office. District, by the city of Miami, Florida Land Size: 146,540 square feet Sale Price: $15,000,000 Price per Sq.Ft.: $102.36 Price per Buildable Sq.Ft.: $18.42 Folio Number: 01-0209-090-1080, -1090, -1100, -1110, -1120, -1130, -1140, - 1150, -1160, -1170, -1180 and -2010 Financing: All cash to the seller Comments: This is almost an entire block bordered on the east by Brickell Avenue, on the west by South Miami Avenue and at the south by S.E. 15th Road. Planned is a mixed -use development. At present, there are a multiple of small office buildings on the site which contribute no value above that of the demolition costs. WRI File No. V.00.67.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 37 Submitted into the public record in connection with item i(IA,iion 51SP q City Clerk Island Gardens at Wasson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 2 Location: 2101 and 2105 BrickeIl Avenue Miami, Florida Date: April 2000 ORB/Page: 19090/0669 Grantor: Coral Way Investments, Inc. Grantee: Brickell Bay Village, Ltd. Legal Description: Lots 65 and 66, Block B and adjacent submerged land lying east and adjacent thereto TIIF Deed No. 2480, BRICKELL FLAGLER, as recorded in Plat Book 5 at Page 164 of the Public Records of Miami -Dade County, Florida Zoning: R-4, Multifamily High Density Residential District, by the city of Miami, Florida Land Size: 144,500 square feet Sale Price: $12,500,000 Price per Sq.Ft.: $86.51 Price per Buildable Sq.Ft.: $27.46 Folio Number: 01-4139-001-2500 and -2510 Financing: All cash to the seller Comments: This property is located in the southern residential portion of Brickell Avenue. It contained a two -building, lowrise apartment complex with covered parking. Constructed in 1968, it contributed no value other than to offset demolition costs. A luxury highrise condominium complex is under construction. WRI File No.V00.68.10 WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 38 Submitted into the public record in connection with • item pFi: on 5SPil City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 3 Location: 520-540 West Avenue Miami Beach, Florida Date: October 1999 and December 2000 ORB/Page: 18848/1046 and 19399/3689 Grantor: Harvey Goodman; William H. Langer and Ellen S. Grantee: Bentley Bay Development Corp. Legal Description: Portions of Lots 20, 21, 22, 23, 24, 25, 26 and 27 of the AQUARIUM SITE AMD Subdivision, as recorded in Plat Book 12 Page 83 of the official records of Mianii-Dade County, Florida. Zoning: RM-3 Residential Multi -Family, High Densityand C-PS4 Commercial Intensive Phased Bayside, by the city of Miami Beach, Florida Land Size: 86,621 square feet Sale Price: $6,800,000 ($5,525,000 + $1,275,000). Contract was originally reported at $6,400,000. Price per Sq.Ft.: $78.50 Price per Buildable Sq.Ft.: $23.30 Folio Number: 02-4204-006-0140, -0150 Financing: All cash to the seller Comments: The grantee is developing a 160 unit condominium called the Bentley Bay Club. The site is located at the base of the MacArthur Causeway entrance to Miami Beach. It has extensive bay views. WRI File No.: V99.134.12 WARONKER & ROSEN, INC. # REAL ESTATE APPRAISERS AND CONSULTANTS 39 Submitted into the public record iGn connection with item' L on ;/ ' /Li City Clerk Island Gardens at Watson Island,1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 4 Location: 550 Brickell Avenue, Miami Florida Date: July 29, 1999 ORB/Page: 18719/3279 Grantor: Brickell Associates, LTD. Grantee: 550 Brickell Associates Legal Description: Lots 1 and 2, less the east 10 feet for street, and lots 3 through 8, Block 108 A, MARY BRICKELL'S ADDITION as recorded in Plat Book B at Page 113 of the Public Records of Miami -Dade County, Florida Zoning: SD-5 and SD-7, Brickell Avenue Area Office - Residential District, and Central Brickell Rapid Transit Commercial Residential - District, by the city of Miami, Florida Land Size: 55,321 square feet Sale Price: $9,800,000 Price per Sq.Ft.: $177.15 Price per Buildable Sq.Ft.: $12.25 Folio Number: 01-0210-030-1500, -1510, -1520, -1530, and -1540 Financing: Cash to seller, conventional mortgage of $4,800,000 with Colonial Bank at market rates and terms. Comments: The improvements consist of an office building fronting Brickell Avenue and accompanying vacant land at the rear. It was built in 1952 and renovated in 1996, with a total of 31,381 rentable square feet. According to the selling broker and buyer, the property was purchased for land value, and the site is. planned for high density redevelopment. There are already plans being developed, and the current leases have about 3 years left to run. The purchaser, a New York parking lot operator and an investment fund, paid a premium and is assembling land throughout the Brickell and downtown area for development, as well as parking to go along with development. In July, 1999 the purchasers also acquired Lot 11 and the west''V2 of Lot 10, to the west of the property for $580,000, or $67.00 per square foot; however, another party acquired Lot 9 and the east /2 of Lot 10, separating the tracts. WRI No.: V99.52.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 40 Submitted into the public record in connection with I• temgF:{6 on 510I14 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 5 Location: 60 Alton Road Miami Beach, Florida Date: July 1999 ORB/Page: 18718/1645 Grantor: TRG-SSDI, Ltd. Grantee: West Side Partners, Ltd. Legal Description: Portion of the North 132 feet of Section, a/k/a. Tract A or SMITH BAY FRONT TRACT bordered on North by the Northern line of Section, East by Jefferson Avenue South by Line Parallel to and 132 feet South of the North Line on the West by Bay and Lots 1 to 7 and Southeast 30 feet of Lot 8, Block 111 and Portion of Biscayne Street - Avenue, lying Westerly of the Southerly projection of W/R/W/L of Jefferson Avenue, as recorded in PIat Book 2 at Page 81 of the Public Records of Miami -Dade County, Florida Zoning: CPS-4, Commercial Intensive Phased Bayside District, by the city of Miami Beach, Florida Land Size: 192,496 square feet (4.42 acres) Sale Price: $15,200,000 Price per Sq.Ft.: $78.96 Price per Buildable Sq.Ft.: $30.49 Folio Number: 02-4210-000-0110 Financing: All cash to the seller Comments: This is a bayfront site that also has some ocean views. It is near the tip of south Miami Beach and is being developed with the 180-unit luxury condominium "Murano at Portofino". The developer, Related Housing, has developed several other very successful projects in the area. WRI File No. V99.147.10 WARONKER & ROSEN, INC. ♦+ REAL ESTATE APPRAISERS AND CONSULTANTS 41 Submitted into the public reco[dEiU ip connection with item K. QFu on 5N/y City Clerk Island Gardens at Watson Island 1050 MacArthur Causeways Miami, Florida COMPARABLE VACANT LAND SALE NO. 6 Location: Date: ORB/Page: Grantor: Grantee: Legal Description: Zoning: Land Size: Sale Price: Price per Sq.Ft.: Price per Buildable Sq.Ft.: Folio Number: Financing: Comments: WRI File No. 50 South Point Drive Miami Beach, Florida April 1998 18053/580 Portofino Real Estate Fund, Ltd. South Beach Ocean Parcel, Ltd. Lengthy legal, commencing at the Southerly corner of Biscayne Street and Washington Avenue, then South 10 degrees, West 6.16 feet, North 87 degrees, East 566.270 feet for Point of Beginning in Section 10, Township 56, Range 42, as recorded in the Public Records of Miami -Dade County, Florida CPS-3, Commercial Intensive Mixed Use District, by the city of Miami Beach, Florida 562,795 square feet $42,000,000 $74.63 $23.33 based upon 1,800,000 square feet and prior to downzoning, $32.31 per square foot based upon 1,300,000 square feet after a settlement agreement. 02-4210-000-0134 All cash to the seller The original contract price was $54,000,000 based upon an allowable 1,800,000 square feet or $30.00 per buildable square foot, Subsequent to the construction and prior to closing, the city had a referendum downzoning sites on Miami Beach. The buyer and seller were of the opinion that this site is "grandfathered in". However, the city denied the buyer's permit requests. Litigation ensued and a final settlement was for 1,300,000 square feet. A total of 520 units are being built with accessory uses. This will include time shares and condominiums. The site has extensive ocean frontage and frontage along South Pointe Park and the Government Cut where the cruise ships enter and exit the ocean. V98.88.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 42 Submitted into the public record in conne tion with Item• Ix on 5 City Clerk Island Gardens at Watson Island,1050 MacArthur Causeway, Miami, Florida • COMPARABLE VACANT LAND SALE NO. 7 Location: 400 Alton Road Miami Beach, Florida Date: April 2001 ORB/Page: 19954/4467 and 19699/1442 Grantor: City National Bank of Florida, Trustee Grantee: Murano Two Ltd., and Murano Three Ltd. Legal Description: Lengthy legal — see instrument. Portion of Lots 30 to 42, Block 111, OCEAN BEACH ADDITION NO. 3, as recorded in Plat Book 2 at Page 81, of the Public Records of Miami -Dade County, Florida Zoning: CPS-4, Commercial Intensive Phased Bayside District, by the city of Miami Beach, Florida Land Size: 308,688 square feet (7.09 acres) Sale Price: $52,000,000 Price per Sq.Ft.: $168.45 Price per Buildable Sq.Ft.: $47.27 Folio Numbers: 02-4203-009-9255 and 02-4203-009-9250 Financing: All cash to the seller Comments: The site is located between Alton Road at the east and the Intracoastal waterway/Miami Beach Marina at the west, south of the MacArthur Causeway/5th Street. Two towers will be constructed by Related Development. The property already had vested rights for development. WRI File No. V01.47.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 43 Submitted into the public record in connection with .1temr6.(1 on C 40.) City Clerk Island Gardens at Watson Island,1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 8 Location: Southeast corner of S.E. 12th Street and Brickell Bay Drive (South Bayshore Drive), Miami, Florida Date: October 2000 ORB/Page: 19318/0034 Grantor: Brickellinvest Joint Venture Grantee: TWJ, Ltd. Legal Description: Tract "B" of BAYSHORE PALMS REPLAT, as recorded in Plat Book 155 at Page 100 of the Public Records of Miami -Dade County, Florida. Zoning: SD-5, Brickell Avenue Residential - Office District, by the city of Miami, Florida Land Size: 108,726 square feet Sale Price: $15,500,000 Price per Sq.Ft.: $142.56 Price per Buildable Sq.Ft.: $22.06 Folio Number: 01-4139-071-0010 Financing: All cash to the seller Comments: This is an approximately square site located in the Brickell Financial District, east of Brickell Avenue with direct Biscayne Bay frontage. This site is one-half of a five -acre parcel that has a development order in place. It contains extensive bay frontage and is approved for multifamily use. The site reportedly has several restrictions in place upon the sale, including a three-year moratorium from closing until construction can take place and the project to the south has to be 40% sold out prior to this site commencing construction. WRI No.: V00.84.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 44 Submitted into the public record in connection with item pc' 11 on r,-lb// y City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 9 Location: Date: ORB/Page: Grantor: Grantee: Legal Description: Zoning: Land Size: Number of Units: Sale Price: Price per Sq.Ft.: Price per Unit: Price per Buildable Sq.Ft.: Folio Number: Financing: Comments: WRI File No.: 101 and 115 Ocean Drive Miami Beach, Florida October 1998 18317/4338 Sun and Fun, Inc. BOV Development Corporation Lots 7 and 8, Block 113, OCEAN BEACH ADDITION NO. 4, according to the plat thereof, as recorded in Plat Book 3 at Page 151 of the Public Records of Miami -Dade County, Florida. RSP-4, Multi -Family Residential District, by Miami Beach, Florida 1.01 acres (43,843 square feet) 94 $8,000,000 $182.47 $85,106 $62.69 02-4203-012-0090 All cash to seller This is an oceanfront parcel at the tip of South Beach in the South Pointe neighborhood. South Beach is one of the most desirable areas in South Florida. Under construction is 94 units consisting of 98,521 square feet in a condominium hotel format. There will also be an additional 29,094 square feet of condominium retail space. V98.33.23 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 45 Submitted into the public recordfniconnection with item,e.11 on .5/SVPf City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 10 Location: 7360 North Kendall Drive Miami, Florida Date: January 1998 ORB/Page: 17945/3338 Grantor: Office Depot, Inc. Grantee: Centres Dadeland, Ltd. Legal Description: Tract A, OFFICE DEPOT COMPLEX, as recorded in Plat Book 146 at Page 91 of the Public Records of Miami -Dade County, Florida. Zoning: BU-2, Special Business -Regional Shopping Center and Office Park District, by Miami -Dade County, Florida Land Size: 277,564 square feet, Sale Price: $11,700,000 Price per Sq.Ft.: $42.15 Folio Number: 30-5002-069-0010 Financing: Conventional loan with Lehman Brothers Holdings. Inc. for $11,700,000 Comments: This site previously sold for $9,000,000 in September 1993, indicating a yearly increase of approximately 6%. WRI No.: V98.113.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 46 Submitted into the public record irtconnection with 'tem2E.0 on 5/7/Iy City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway1 Miami, Florida COMPARABLE VACANT LAND SALE NO. 11 Location: 7220 North Kendall Drive Miami, Florida Date: January 1999 ORB/Page: 18523/2815 Grantor: Kahn Realty Grantee: Zelman Dadeland, L.P. Legal Description: Lengthy. A portion of PALMETTO-KENDALL HEIGHTS, as recorded in Plat Book 70 at Page 47 of the Public Records of Miami -Dade County, Florida. Refer to recording instrument for a complete legal description. Zoning: BU-2, Special Business -Regional Shopping Center and Office Park District and BU-3, Liberal Business District, by Miami -Dade County, Florida Land Size: 218,933 square feet. Sale Price: $12,875,000 Price per Sq.Ft.: $58.81 Folio Number: 30-4035-021-0030 Financing: Commercial construction loan of $24,000,000 with Bank Comments: One This site was formerly used by Sun Chevrolet. After the purchase, the improvements were demolished. Constructed on this site is a retail complex across the street from Dadeland Mall. WRI No.: V99.21.10 WARONKER & ROSEN, INC. it REAL ESTATE APPRAISERS AND CONSULTANTS 47 Submitted into the public record in connection with •ttemPE +a o City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida COMPARABLE VACANT LAND SALE NO. 12 Location: 1060 Brickell Avenue Miami, Florida Date: December 2001 ORB/Page: 20101/4224 Grantor: Horacio Toro, Trustee Grantee: 1060 Brickell Partners, LLC Legal Description: Lot 6 and a portion of Lot 21, Block 100 South, BRICKELL'S AMENDED ADDITION TO THE MAP OF MIAMI, as recorded in Plat Book B at Page 113 of the Public Records of Miami -Dade County, Florida Zoning: SD-5, Brickell Avenue Area Residential -Office District, by the city of Miami Land Size: 77,581 square feet Sale Price: $10,520,500 Price per Sq.Ft.: $135.61 Folio Numbers: 01-0209-090-1260, -1270 and -1470 Financing: Purchase money mortgage of $8,510,416 Comments: The buyer obtained a major use special permit from the city to redevelop the site with two 30-story apartment towers with 605 units. The indicated price per apartment unit is $17,389. WRI File No. V01.63.10 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 48 1 Vi 1 1 i 1 J J Submitted into the public recoRie connection with Item tit. -I, on gsifY City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Sales Comparison Approach (continued) ADJUSTMENT CHART On the previous page characteristics of the sales were compared to the subject. Percentage adjustments were not utilized. In order to utilize percentage adjustments it would be necessary to pair (compare) sales to extract value differences. This is difficult as there is normally insufficient data to provide pairings for all value differences. Below is a grid which illustrates necessary adjustments based upon the comments on the following pages. A plus (+) sign indicates the price per square foot of sale must be adjusted upward as that characteristic is inferior to the subject. A minus (-) sign indicates the price per square foot of the sale must be adjusted downward since the characteristic is superior to the subject. An equal (=) sign indicates the comparable sale characteristic is similar to the subject. Saey "k'R r �';$il YS:34, t''xP ii 1a .09:4.. .i.". zCo idlalbns ...M' 1 "Locatlo} DensltyJG - Zouii►g Other :;:;1.d utme. n tV O.. v� er..:aL.l 1 $18A2 + + + _ + 2 $27.46 + + — _ + 3 $23.30 ++ + — = + 4 $12.25 ++ - ++ _ +t+ 5 $30.49 14 - - _ + 6 $32.31 +++ - - = + 7 $47.27 = — — = — 8 $22.06 + _ + + + $62.69 ++ -- - = - l9 11 '.� 12 .i•'. , "r.. ,...> ... NOTE: Financing and conditions of sale are not shown on this chart as all land sales are considered to be comparable to the subject in these characteristics. Therefore no adjustment is necessary. After considering the individual differences, either a plus (+), minus (-) or equal (=) sign was placed in the "Overall" column. This indicates the overall adjustment that the sale would require as compared to the subject site, WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 49 Submitted into the public record in connection with item.ui on5f Sjl� City Cl-erk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Sales Comparison Approach (continued) CONCLUSION OF VALUE BY THE SALES COMPARISON APPROACH The sales comparison approach compares similar properties to the subject property. These sales were analyzed for differences such as conditions of sale, financing, market conditions, location, density/zoning and other characteristics. Based on these comparisons, a value is estimated for the subject property. Two units of comparison were used; price per square foot of land area and price per buildable square foot. Price per buildable square foot divides the square footage proposed to be constructed into the purchase price. This is a typical unit of comparison used by developers. The main categories for adjustment were market conditions (time), location and density. The density analysis considers that the higher the density, the lower the price per buildable square foot, given all other characteristics the sarne. This is due to economies of scale. The analysis ofthe subject property was based upon the price per buildable square foot as opposed to price per allowable unit or price per square foot of land area. Price per buildable square foot is an indication that considers the various allowable uses while the other indications do not consider the multitude of allowable uses. Sale Nos. 1 to 9 range from $12.25 to $62.69 per buildable square foot with a mean of $30.69 per square foot and a median of $27.46 per square foot. A price per buildable square foot could not be extracted for Sale Nos. 10 to 12. Excluding Sale No. 4 ($12.25 per sq.ft.) whereby it has a very high density of 14.46 due to some allocations for a separate parcel, the remaining sales which had closer Floor Area Ratios (FAR) to the subject property range from $18.42 to $62.69 per buildable square foot. Sale No. 1($18.42 per buildable sq.ft.) is a large site with three street frontages. It has a Brickell Avenue address, but no water frontage. The location is considered to be inferior to the subject property with a positive adjustment necessary, Market conditions are inferior as values have increased over time and density (FAR) is higher with a positive necessary. The buildings on the site are only considered to contribute enough value to offset demolition costs. The site is inferior overall with a positive adjustment necessary. Sale No. 2 ($27.46 per buildable sq.ft.) is an inferior location southwest of the subject property, with a Brickell Avenue address and waterfrontage. It is less desirable than the subject property area. This sale requires a positive adjustment for location. The FAR for density is lower than the subject property and this sale required a negative adjustment. Overall, this sale is inferior. WARONKER & ROSEN, INC. REAL ESTATEAPPRAISERSAND CONSULTANTS 50 1 Submitted into the public record in connection with item Fi. on .S/ // L City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Sales Comparison Approach (continued) Conclusion of Value by the Sales Comparison Approach (continued) Sale No. 3 ($23.30 per buildable sq.ft.) is located on south Miami Beach with wide bay frontage and street frontage on West Avenue. The South Beach location is considered somewhat comparable, but West Avenue is less desirable than the subject property location. This sale requires a slight positive adjustment. The sale occurred in late 1999 and a positive adjustment was allocated due to the upward trend of prices in the market. The FAR for density is lower than the subject property with a negative adjustment necessary. Overall, this sale is inferior to the subject property with a positive adjustment necessary. Sale No. 4 ($12.25 per buildable sq.ft.) occurred in 1999 in an inferior market time with sale prices increasing since that time. This sale requires a positive adjustment for market conditions. The location of this sale is directly on Brickell Avenue at its north portion closer to downtown Miami. This location is considered superior to the subject property. Density is significantly higher than the subject property due to some off -site allocations applied towards this property. The sale required a large positive adjustment for density. Overall, this sale required a large positive adjustment primarily due to its high FAR for density. Sale No. 5 ($30.49 per buildable sq.ft.) is a superior location at the southwest point on South Beach. It has a bay view and government cut view, as well as some ocean views. FAR for density is also lower and a negative adjustment was necessary. The sale occurred in 1999 in an inferior market time. Overall, this sale required a positive adjustment. Sale No. 6 ($32.31 per buildable sq.ft.) is located at the southeast point of South Beach. It has ocean frontage and views along with bay views and government cut views. This sale required a negative adjustment for its superior location. It occurred in 1998 and a positive market conditions adjustment was necessary. The FAR for density is lower and this sale required a negative adjustment. Overall, the sale is inferior with a positive adjustment necessary. Sale No. 7 ($47.27 per buildable sq.ft.) is located on South Beach. It has Intracoastal water frontage, as well as some ocean views for the proposed higher floors. Additionally, the Miami Beach Marina is along the waterfrontage behind this property. This location is considered superior also with its Alton Road address. The FAR for density is lower, therefore, a negative adjustment is necessary. Market conditions are similar as the sale recently occurred. WARONKER & ROSEN, INC. 40 REAL ESTATE APPRAISERS AND CONSULTANTS 51 Submitted into the public reco d in connection with item f'1.0 on 5/d114 City Clerk Island Gardens at Watson Island,.1050 MacArthur Causeway, Miami, Florida Sales Comparison Approach (continued) Sale No. 8 ($22.06 per buildable sq.ft.) is a comparable location in the Brickell Avenue area with wide bay frontage. Density is considered equivalent and market conditions require a positive adjustment for the October 2000 sale date. The site had several restrictions that affected the timing for construction. This is a negative factor for this site with a large positive adjustment necessary in the other category. Overall, this sale required a positive adjustment. Floor Area Ratio (FAR) is higher with a positive adjustment necessary. Sale No. 9 ($62.69 per buildable sq.ft.) is a very superior location on the ocean and beach. This sale required a large negative adjustment for location. It required a positive adjustment for market conditions as it sold in 1998. Density is lower than the subject property with a negative adjustment necessary. Overall, this sale required a negative adjustment. Sale Nos. 10 and 11 are located across the street from Dadeland Mali. These sales were shown as their locations are highly desirable for retail use. Sale No. 12 is located on Brickell Avenue and is planned to be developed with two apartment towers. This sale was used to show the land value per square foot for a desirable location. Following is a grid of the sales from low to high based on their respective FAR's (Floor Area Ratio). . . _ .. t . `Sale,' , . , .;)t rlce er Sq.Ft. '?;B,ui mile Area. FAR 6 $32.31 2.31 5 ' $30.49 2.59 9 $62.69 2.91 2 $27.46 3.15 3 $23.30 3.37 7 $47.97 3.56 Subject.kroposal'; =` - ; .', ; . 4.05 1 $18.42 5.56 8 $22.06 6.46 4 $12.25 14.46 After adjustment on a cumulative basis, Sale Nos. 1, 2, 3, 4, 5, 6 and 8 ($12.25 to $32.31 per buildable sq.ft.) are inferior and required positive adjustments while Sale Nos. 7 and 9 ($47.27 and $62.69 per buildable sq.ft.) are superior and require negative adjustments. WARONKER & ROSEN, INC. 4 REAL ESTATE APPRAISERS AND CONSULTANTS 52 Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Sales Comparison Approach (continued) Therefore, the value of the subject property should be above $32.31 per buildable square foot, and below $47.27 per buildable square foot. Based on these sales, an estimate of $35.00 to $40.00 per square foot of buildable area was concluded. Applying the buildable area of 749,771 square feet times $35.00 to $40.00 per square foot indicates $26,000,000 (rounded) to $30,000,000 (rounded). The estimated value was concluded to $28,000,000 at the median of the range. This value equals $59.52 per square foot of gross land area ($28,000,000 = 470,448 sq.ft.) and $151.35 ($28,000,000 ± 185,005 sq.ft.) of developable land area. The per square foot price per developable land sales are in the Brickell Avenue area and the South Beach area. The above estimated value is solely for the 10.8 acres of upland. On page 68 begins a valuation of the 13.4 acres of submerged land. WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 53 Submitted into the public record in connection with item,rlIIon518)ILj City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Sales Comparison Approach (continued) MARKET VALUE RENTAL RATE On the previous pages the Fee Simple Interest upland value of 10.4 acres was estimated. Also part of the appraisal assignment is the estimation of land rent. On the following page begins an analysis of land leases from both the public and the private sector. WARONKER & ROSEN, INC. tro REAL ESTATE APPRAISERS AND CONSULTANTS 54 Submitted into the public record in connection with • itemifti on 8119 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE RETURN RATES In order to estimate a typical return for the subject site,.various leases were reviewed. Lease Nos. 1 to 5 are all non -subordinating leases from municipalities. Lease Nos. 6 to 9 are private leases that all subordinate. LEASES FROM MUNICIPALITIES Lease No. Lessor Lessee Land Area (Sq.Ft.) Rent per Sq.Ft.0) Rent % of Value 1 Broward County BCCC Hotel Limited Partnership 192,187 $1.30 7.1% 2 Miami -Dade County Green Dadeland Station 461,736 $.65 5.0% 3 City of Coral Gables Rouse - Coral Gables, Inc. 365,904 $1,09 7.3% 4 City of Coral Gables Merrick Center 115,434 $.43 4.4% 5 Miami -Dade County Harvey Taylor Group 231,957 $1.29 3.5% PRIVATE LEASES Lease No. 6 N.W. 22"d Street and N.W. 34th Avenue Miami Alamo Rental Car 163,350 $1.83 8.6% 7 809 North Flagier Avenue Homestead ' Ruby Tuesday 49,528 $2.18 8.6% 8 2500 N.W. 87th Avenue Miami Amoco 45,614 $2.70 10.8% 9 Various locations Monroe County Outdoor Systems 119,720 $.24 10.34% (1) Based on the first year of income after construction On the following pages are details of the above leases. WARONKER & ROSEN, INC. o> REAL ESTATE APPRAISERS AND CONSULTANTS 55 Submitted into the public record iA connection with item. If on *1114 City Clerk Island Gardens at Watson Island 1050 MacArthur Causeway, Mianti, Florida LEASE NO. 1 Lessor: Broward County Lessee: BCCC Hotel Limited Partnership Location: Southwest corner of S.E. 17'h Street and Intracoastal Waterway, Fort Lauderdale, Florida Land Size: 4.4I2 acres (192,187 sq.ft.) Lease Began: February 3, 1998 Lease Term: 99 years Estimated Land Value: $3,500,000 Proposed Development: Hotel with 500 rooms, restaurant/bar, meeting rooms, banquet rooms and parking garage Rent Terms: $25,000 per year during construction $250,000 per year after construction Plus percentage rent of Years 2 and 3 Years 4 and 5 Years b and 7 Year 8 to end of lease .5% of Hotel Revenues 1.0% of Hotel Revenues 1.5% of Hotel Revenues 2.0% of Hotel Revenues Rate of Return: 7.1 % (first year after construction) WARONKER & ROSEN, INC. ' REAL ESTATE APPRAISERS AND CONSULTANTS 56 Submitted into the public recor in connection with io item - ion 5Asti City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO. 2 Lessor: Miami -Dade County Lessee: Green Dadeland Station Location: South Dixie Highway and Snapper Creek Expressway, Miami, Florida Land Size: 10.6 acres (4,61,736 sq.ft.) Lease Began: April 1994 Lease Term: 90 years Estimated Land Value: $6,000,000 (per appraisal) Proposed Development: Phase I 200,000 to 275,000 square feet of mixed -use retail Phase II 300-room hotel Phase III 150,000 to 200,000 square feet of office Rent Terms: Year 1 $150,000 Year 2 $200,000 Year 3 $250,000 Year 4 $300,000 Year 5 $350,000 Year 6 $400,000 Years 7 to 90 $400,000 Rate of Return: 5% (fourth year) Comments: The lease payments begin upon lease execution. Phase 1 has been developed. WARONKER & ROSEN, INC. V► REAL ESTATE APPRAISERS AND CONSULTANTS 57 Submitted into the public recoa M connection with item r .11on518(iq City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO. 3 Lessor: City of Coral Gables Lessee: Rouse - Coral Gables, Inc. Location: LeJeune Road and San Lorenzo Avenue, Coral Gables, Florida Land Size: 8.4 acres (365,904 sq.ft.) Lease Began: July 1997 Lease Term: 30 years with up to two additional 30-year terms Estimated Land Value.: $5,500,000 (per appraisal) Proposed Development: Retail 730,000 square feet Office 80,000 square feet Residential 150,000 square feet Parking 3,390 cars Cinema 20,000 square feet maximum Rent Terms: $120,000 per year during construction $400,000 per year after construction, increasing by $50,000 every five years. In addition, the lessor will receive 20% of net cash flows after an 11 % preferred return on developer equity. Return Rate: 7.3% (after construction), plus percentage rent Comments: In addition to the rent, the developer contributes $35,000 annually for the first 25 years to a Coral Gables merchants' programs. WARONKER & ROSEN, INC. to REAL ESTATE APPRAISERS AND CONSULTANTS 58 Submitted into the public record in connection with rtem�2t u on 5jS1 9 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO.4 Lessor: City of Coral Gables Lessee: Merrick Center Land Size: 2.65 acres (115,434 sq.ft.) Lease Began: October 1991 Lease Terrn: 30 years with two additional 30-year options Estimated Land Value.: $1,700,000 (considers an estimate of Market Value) Proposed Development: Retail 33,500 square feet Apartments 236 Units Parking 729 spaces Rent Terms: $24,000 per year during construction $50,000 per year after construction, increasing by $10,000 per year until base rent is $200,000. In addition, the developer will pay .6% of gross revenue (projected first year percentage rent is $24,431), increasing by .1 % per year until it reaches 3%. Return Rate: 4.4% (plus additional rent) Comments: The city of Coral Gables required additional parking of 280 spaces beyond what was required for the development. WARONKER & ROSEN, INC. op REAL ESTATE APPRAISERS AND CONSULTANTS 59 Submitted into the public recor in connection with item VZE.I1 on nigli City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO. 5 Lessor: Miami -Dade County Lessee: Harvey Taylor Group Land Size: 5.325 acres (231,957 sq.ft.) Lease Began: 2001 Lease Ends: 30 years Option: After 30 years there are additional options based on market rent. Proposed Development: Mixed -use development with office, retail and apartments Rent Terms: Year 1 $60,000 Year 2 $120,000 Year 3 $180,000 Years 4 to 30 $300,000 The above rent is fixed and there is additional rent of 2% of gross revenues. Return Rate: 3.5% for base rent, plus percentage rent. Comments: The developer is responsible for creating and maintaining parking for the Metrorail. There will be a need to provided 75 spaces with the potential for having to provide up to 200 spaces. This tends to lower the return rate as there is an increased obligation on the part of the lessee. The lease payments begin upon lease execution. WARONKER & ROSEN, INC, 1.4 REAL ESTATE APPRAISERS AND CONSULTANTS 60 Submitted into the public record in connection with itemfT,Ion 'ScILi CityClerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO. 6 Location: N.W. 22' Street and N.W. 34th Avenue Miami, Florida Lessee: Alamo Rental Car Land Size: 3.75 acres (163,350 sq.fi.) Lease Began: July 2001 Lease Ends: 20 years Option: None Use: Rental car lot with small office and site improvements Rent per Sq.Ft.: $1.83 Return Rate: 8.6% , based on rent of $299,000 per year and a sales price of $3,477,000 Comments: This lease has an escalation clause. WARONKER & ROSEN, INC. tti REAL ESTATE APPRAISERS AND CONSULTANTS 61 Submitted into the public recoo1 connection with item REM on 50q City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO. 7 Location; 809 North Flagler Avenue Homestead, Florida Lessee: Ruby Tuesday's Land Size: 1.14 acres (49,528 sq.ft.) Lease Began: 1998 Lease Ends: 30 years Option: Yes, but not disclosed Use: Ruby Tuesday's Restaurant Rent per Sq.Ft.: $2.18' Return Rate: 8.6% , based on rent of $108,000 per year and a purchase price of $1,255,000 Comments: This lease has an escalation clause. WARONKER & ROSEN, INC. s REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public recoi le connection with item tErI on 5/8JIy City Clerk 62 Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO, 8 Location: 2500 N.W. 87th Avenue Miami, Florida Lessee: Amoco Land Size: 1.05 acres (45,614 sq.ft.) Lease Began: 1998 Lease Ends: 30 years Option: Unknown Use; Amoco Service Station Rent per Sq.Ft.: $2.70 Return Rate: 10.8%, based on rent of $123,000 per year and an estimated value of $1,140,000 Comments: This lease has an escalation clause. WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 63 Submitted into the public recon la connection with .item i2€- w on 5/ 5111l City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida LEASE NO. 9 Location: Various sites throughout Monroe County Lessee: Outdoor system Land Size: 2.75 acres (119,720 sq.fi.) Lease Began: 1999 Lease Ends: 10 years Option: Yes, two five-year options Use: Outdoor advertising signs Rent per Sq.Ft.: $.24 Return Rate: 10.4% for base rent, plus percentage rent WARONKER & ROSEN, INC. tiQ REAL ESTATE APPRAISERS AND CONSULTANTS 64 Submitted into the public recoI i0 connection with item a . u on 5/8 i q City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida CONCLUSION OF MARKET RENTAL RATE To estimate the market land rent, land leases were reviewed and analyzed. Two types of leases were found; private leases and public leases. The private leases were typically for terms often to 30 years, with options. These land leases were for small or medium size developments and all subordinate to first mortgages. The rental rates for these private leases range from 8.6% to 10.8%. This range is typical of land rental rates. Also considered was major international airports such as Orlando International, Los Angeles, Dulles (Washington, D.C.) and Tampa which rent land based on 7% to 1 0% of land value. This land is used for hangars, cargo, maintenance facilities and storage of planes. Most quote a 10% land rate. These rental rates indicate a land rental rate in the range of 8% to 10% for subordinated land leases. A rate of 9% would be estimated based on these leases. This rate needs to be adjusted for the lack of subordinating (see below). The public leases all extend 90 years or greater when the options are included. These rents range from 3.5% to 8%, plus percentage rent in some cases. These leases do not subordinate to a first mortgage. Discussion with lenders indicated that the non -subordinating land lease is more risky and would be cause for a higher interest rate on the construction and permanent loans. Two lenders quoted 200 to 400 basis points, translating to an additional 2% to 4% loan rate. A developer stated that there might not be any increase in the rate, dependent on the strength of the borrower. He further stated that the lender might require a greater equity investment. A higher interest rate cost would result in a lower land rental rate as there would be less funds available to pay land rent due to higher interest on the loan. Additionally developers not owning the underlying land have less control over their investment which tends to lower the value of the constructed product. A search was made for private land leases for large scale developments, however none were found. For large scale developments on private land the land is typically acquired in Fee Simple. Or if the land is leased, the lessor typically becomes part of a development joint venture and therefore, it is not an arm's length transaction. The lack of subordination is difficult to quantify. If land leases for smaller properties with subordination range mainly from 8% to 10%, than a larger site without subordination should have less of a return rate. The developer proposes total construction costs of $281,260,000 (rounded) with equity of $112,500,000 (rounded). This leaves the balance of $168,760,000 (rounded) to be financed. If additional interest of .25% to .5% was charged on a $168,760,000 loan, the interest would be an additional $420,000 (.25%) to $844,000 (.50%). Based on a land value of$28,000,000 this would represent approximately 1.5% ($420,000 _ $28,000,000) to 3% ($844,000 ÷ $28,000,000). The additional interest payments would be that much less that could be paid toward land rent to offset the additional interest rate on the construction. While this is not a precise analysis, it demonstrates why the private lease rates need to be adjusted downward. A market rental rate of WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 65 Submitted into the public • reco[0connection with item RE.tr on 5/gici City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Conclusion of Market Rental Rate (continued) 9% was estimated based on the private leases which is toward the median of the range of land rental rates. From this is subtracted 2%, indicating a land rental rate of 7%. The subject lease will not subordinate so greater emphasis should be placed on the leases that also. do not subordinate. These leases range from 3.5% to 8%. The most recent lease is for 7.1% and has a percentage rent clause that tops out at 2% from year eight and beyond. This lease is also comparable as it is for a hotel development of 500 rooms, similar to one of the main components for the subject property. The percentage rent of 2% could add an additional 10% return beginning in the eighth year, and based on current land value. A market rental rate of 7% was estimated based on adjusting the private leases and with comparison to the leases that do not subordinate. This 7% rate would be increased every five years based on the compounded Consumer Price Index (CPI). WARONKER & ROSEN, INC, ob REAL ESTATE APPRAISERS AND CONSULTANTS 66 Submitted into the public recofiz-.0 ion connection with item 0rvr+ on .5/0,-1 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida CONCLUSION OF LAND RENTAL RATE On the previous pages, land rental rates were analyzed from both public and private leases. The private leases indicated higher rental rates attributable in part to being subordinating leases. The public leases were all non -subordinating leases and indicated lower rental rates. Based on the analysis of the comparables, a land rental rate was estimated at 7%. This rental rate is applied to the estimated land value to indicate the estimated land rent, as follows: 7% Estimated Land Rental Rate x 28,000,000 Estimated Land Value (page 53) $1,960,000 Estimated Land Rent This estimated land rent would be subject to increases every five years based on the Consumer Price Index (CPI). The increases would be cumulative for the five year period. The above estimated rate does not include additional rent in the form of percentage rent. ALTERNATIVE ANALYSIS The above rent does not include any percentage rent. A second method of charging land rent would be a lower percentage of land value, plus a percentage of gross revenues of the completed development. Based on the comparable leases, this is estimated at a 5% land rental rate plus 2% of gross revenues of the completed development. Like Land Lease No. 1, the percentage rent can begin at a lower rate to allow the development to reach stabilization. The first year is estimated at .5% of gross revenues and then increasing .5% per year until it reaches 2%. WARONKER & ROSEN, INC. oa REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public recod in connecti9n with item Q£.l i on 5 67 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida VALUATION OF MARINA COMPONENT The rental estimate on the previous page is for the upland only and does not value the marina component which consists of 13.4 acres of submerged land. There is a lack of comparable sales data in which to estimate the value of the 13.4 acres of submerged land to be used to develop the marina. In order to estimate the value of the submerged land, two methods were applied. Method One analyzes submerged land lease rates from the State ofFlorida. These are leases of submerged land between the State of Florida and the adjacent upland owner. Terms for these leases vary, but they can be canceled by the state. Method Two uses a residual technique which estimates the value of the marina upon completion and deducts the projected costs to indicate a land value. This method uses the developer's projections and modifies these projections. Method One - Comparable Rental Rates Following is a summary of submerged land leases with the State of Florida as the lessor. Lessee Rate per Acre Term Size (Acres) Date MOF JC Limited Partnership $3,604 3 years 5.29 6/00 Key Biscayne Yacht Club $5,036 5 years 3.80 1/00 Miramar Marina $4,195 9 years 8.23 3/00 City of Miami r $4,324 20 years 3.51 7/01 The above leases indicate rental rates of $3,604 to $5,036 per acre. This rental rate range would establish the lower end of the rent for the subject marina, as the subject lease would be for 45 years with two 15 year options. The long term of the subject lease would allow the developer to secure financing for the construction of a marina. While construction might be done on the submerged land areas leased from the state, the proposed subject development is extensive. It would be unlikely that a developer would expend the proposed $18,000,000 in construction funds to build on submerged land that was on a short term lease with cancellation clauses. Further, it would be extremely difficult to secure financing for submerged land that was on a short term lease. Based on a rent of $5,000 per acre times 13.4 acres the indicated yearly rent would be $67,000. As noted, the subject rent should be above this level due to the longer lease term. On the following page is Method Two which is a residual approach to estimate the value of the submerged land. WARONKER & ROSEN, INC. ti REAL ESTATE APPRAISERS AND CONSULTANTS 68 Submitted into the public record in cdnnection with itemVp 1� r o 'n bigt y k.rr. City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Valuation of Marina Component (continued) Method Two -Land Residual The developer has projected .the income from marina operations. A copy of these projections is within Addenda B. This analysis projects income from berthing revenues, services and from goods sold, In Year 5 of the projection is when the developer expects stabilization of the marina operation. In Year 5, the daily tariff is projected by the developer at $4.00 per lineal foot and occupancy of 70%, with $2.00 per lineal foot estimated in the first year. Total revenues from berthing are projected at $7,364,000. Total revenues which include other services and sales proceeds total $10,412,000. This attributes $3,048,000 to income other than berthing which represents 41.4% ($3,048,000 - by $7,364,000) of berthing revenues. Expenses have been projected at $4,158,000, or 40% ($4,158,000 _ by $10,412,000) of projected gross revenues. The projected revenues of $4.00 per lineal foot are considered excessive based on comparison of current rates. The developers projection estimates $2.00 per lineal foot in Year 1 with increases of $.50 per lineal foot per year. This is considered excessive. Following are comparable rates per from other marinas. Maripa]Yain"e; '.`-,- ' ''' T;ocittion `;: ;;? -.. .'-;kate/L1neal Foot -:Com»ent: y ';t Sailfish Marina and Resort Sayer Island, Palm Beach $1.65 Rate is for above 36 feet. Florida Hyannis Marina Cape Cod $3_25 $4.00 per foot rate is for Massachusetts $4.00 above 90 feet. Brown's Wharf Boothbay Harbor $1.50 $2.00 per foot rate is for Maine $2.00 above 65 feet. Miami Beach Marina Miami Beach $1.75 $2.50 per foot rate is for Florida $2.00 above 80 feet. The $1.75 per $2.50 foot rate is a summer rate. Shipyard Quarters Marina Charlestown $2.00 $2.50 per foot rate is for Massachusetts $2.50 above 60 feet. Based on the above rates, the market rate is estimated in current dollars at $2.50 per lineal foot. This rate was increased at 3% per year for four years to indicate a rate of $2.81 per lineal foot in Year 5, the year of projected stabilization. This amount was rounded to $3.00 per square foot. On the following page is a five year cash flow which uses the developer's projections as a basis. The developer's projections were adjusted to reflect the above estimated rate of $3.00 per lineal foot. For Years 1 and 2 the developer's exact projections were used. For Years 3 to 5, the lineal foot rate was increased to $2.75, $2.85 then to $3.00 per foot, For Years 3 to 5, the above noted WARONKER & ROSEN, INC. Oa REAL ESTATE APPRAISERS AND CONSULTANTS 69 Submitted into the public reco-dlip connection with tem4E.jt on ni8119 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Valuation ofMarina Component (continued) percentages were applied. These being 3% for other berthing revenues, 41.4% of total berthing revenues for other income and 40% for expenses. Other revenues were added at the same percentage rates as projected by the developer, as were expenses. The five year projected cash flows were then discounted at 16% to 20% to indicate a value of the marina upon completion. From that estimate was deducted the developer's projected cost of the marina, : - 4.);16.r y.04 4u)o 4 Q., ,..-4. :34r. tallf Oztini;i 3 ,±r'sty,r5t11 >4,-144 a� 6,5. ` l;$: r+y+A Lineal Feet Occupancy Occupied Feet Rate Per Lineal Foot Times Days in Year Rent for Lineal Footage Other Berthing Revenues Total Berthing Revenues Other Income Total Revenues Less: Expenses Net Operating Income 7,000 7,000 7,000 7,000 7,00D 7,000 20.00%a 35.00% 50.00% 65,00% 70.00% 70.00% 1,400 2,450 3,500 4,550 490D 4900 $2.00 $2.50 $2.75 $2.85 $3.00 $3.09 365 365 365 365 365 365 $1,022,000 $2,235,625 $3,513,125 $4,733,138 $5,365,500 $5,526,465 $20,000 $55,000 $105,394 $141,994 $160,965 $165,794 $1,042,000 $2,290,625 $3,618,519 $4,875,132 $5,526,465 $5,692,259 $1,553,000 $1,870,000 $1,498,067 $2,018,304 $2,287,957 $2,356,595 $2,595,000 $4,160,625 $5,116,586 $6,893,436 $7,814,422 $8,048,854 $2,496,000 $2,872,000 $2,046,834 $2,757,374 $3,125,769 $3,219,542 $99,000 $1,288,625 $3,069,951 $4,136,062 $4,688,653 $4,829,312 Capitalization Rate 12.00% Indicated Value 0 0 0 0 $40,244,271 $40,244,271 Plus: Income $99,000 $1,288,625 $3,069,951 $4,136,062 $4,688,653 Total Cash Flow $99,000 $1,288,625 $3,069,951 $4,136,062 $44,932,924 16.00% $26,687,251 17.00% $25,644,378 18.00% $24,651,766 19.00% $23,706,571 20.00°% $22,806,133 The discounted cash flow indicated a value of $24,500,000 (rounded) upon completion for the marina. This is based on a discount rate of 18%. From this amount was subtracted the developer's cost of $18,000,000, rounded, plus a 25% entrepreneurial incentive, totaling $22,500,000. The residual amount is $2,000,000 ($24,500,000 less $22,500,000). The previously estimated market rental percentage of 7% can be applied to this value of $2,000,000 indicating a rent of $140,000 for the marina submerged land by Method Two. WARONKER & ROSEN, INC. Od REAL ESTATE APPRAISERS AND CONSULTANTS 70 Submitted into the public record in connection with itemtzijion 518'1Li City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Valuation of Marina Component (continued) Conclusion Two methods were used to estimate the market rent for the submerged land area. Method One compared submerged land rents and indicated a rental of $67,000 per year, This rental was considered to establish the low end ofthe range as the leases can be canceled and are for shorter terms than proposed for the subject. Method Two is a residual method that projected the lease up ofthe marina operation and discounted the cash flow to indicate a value. This is a more subjective method as it is necessary to project revenues and expenses over a five year period. Method Two indicated a rental amount of $140,000 per year. The two methods were correlated to an estimated rental rate for the submerged land area of $100,000 per year. Based on a rental rate of 7%, the implied value for the 13.4 acres of submerged land is $1,430,000 ($100,000 =.07, rounded). This amount will be used as the estimated value of the submerged Iand area. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 71 Submitted into the public record to io connection with item 12 ..I I on '5I111 L{ City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida FLAGSTONE PROPERTIES, LLC PROPOSAL Below is a summary of the proposal by Flagstone Properties, LLC. This information was taken from page IV-39 of the developer's proposal. DEVELOPER FLAGSTONE PROPERTIES, INC. Type of Space Units Sq.Ft. Size Retail N/A 137,216 Restaurants 4,500 seats 84,012 Lighthouse Hotel 300 rooms 277,964 Wave Hotel 225 rooms 239,986 Marina Office N/A 6,593 Marina Slips 54 dock spaces 0 Maritime Gallery N/A 4,000 Total Buildable Area 749,771 Surface Parking 1,509 spaces 602,436 Roof Garden N/A 121,058 Term of Lease 45 years Options 2 to 15 years Lease Data (Pates I-7) Minimum Guaranteed Rent S2,000,000 Participation Rent 1% of Gross Revenues Proceeds from Investment 2.5% of Gross Revenues Land Area Open Space (page IV-39) 6.55 acres 285,443 sq.ft. For Development 4.25 acres 185,005 sq.ft. Total Land Area 10.80 acres 470,448 sq.ft. Floor Area Ratio (FAR) On total land area 1.59 Floor Area Ratio (FAR) On development area 4.05 On the following pages is a general discussion of the proposal. WARONKER & ROSEN, INC. 1.4* REAL ESTATE APPRAISERS AND CONSULTANTS 72 Submitted into the public record in connection with item Ero on,5/0`-1 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida ANALYSIS OF FLAGSTONE PROPERTIES PROPOSAL Name of Developer: Flagstone Properties, LLC Proposed Development: Total Square Feet Proposed: Proposed Guaranteed Rent: Proposed Participation Rent: Two hotels, retail space, restaurant space and marina 749,771 square feet of buildable area, plus a garage and rooftop garden $1,000,000 per year after issuance of building permit, then $2,000,000 per year increasing annually based upon the Consumer Price Index (CPI). In the fourth year of occupancy there is an additional rent of I %•of Gross Revenues, which is in addition to the guaranteed rent. WARONKER & ROSEN, INC. yl REAL ESTATE APPRAISERS AND CONSULTANTS 73 Submitted into the public record in connection with ��, ca item f.r i on 5/ 'JI Lf City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Discussion of the Proposal Following is a discussion of the proposal, by type of projected use. Retail Developer's Proposal (Page IX-6) The retail component will have a gross area of 137,216 square feet, per page 1X-6 of the developer's rents will range from $50 to $65 per square foot plus a Common Area Maintenance (CAM) of another $35.00 per square foot. The blended rental rate is projected at $56,00 per square foot. This includes a management fee of 3.5%. All tenants will also pay a percentage rent. The developer projects that upon completion of construction, the retail space will be 95% leased. Within the cash flow projections the developer uses a 10% vacancy. There is a discrepancy in the amount of retail space. On page IV-39 of the developer's proposal there is to be 137,216 square feet compared to page IX-7 which indicates 122,773 square feet (116,634 sq.ft. .95). However, also on page IX-7, the proposal indicates 6,634 square feet represents a 5% vacancy, which implies 132,680 square feet. The cash flow assumptions show 137,2I6 square feet and a 15% vacancy factor equaling 116,634 square feet. Within this report the amount of 137,216 square feet was used. The developer's cash flow projection has the property reaching stabilization in the Year 2006. Total retail revenue in 200.6 are projected at $11,326,701 with a 10% vacancy, leaving an effective gross income of $10,194,031. Added to this is revenue of $1,349,064 for the parking garage. The gross revenues of $11,326,701 equal $82,55 per square foot ($11,326,701 ÷ 137,216 sq.ft.). Deducting $35.00 per square foot for CAM indicates retail rent of approximately $47.55 per square foot ($82.55 less $35.00 per sq.ft.). Cost of the retail component is estimated at $59,000,000 (rounded), equaling a cost of approximately $430.00 per square foot. Cost to build the retail component at $430.00 per square foot is overstated. This cost is far in excess of other retail centers such as Ocean Steps (15t Street and Ocean Drive) and Brickell Village. The projected retail rent of $56.00 per square foot and $35.00 per square foot for CAM is considered in excess of current market rent levels. The 10% vacancy factor is considered realistic. WARONKER & ROSEN, INC. 04 REAL ESTATE APPRAISERS AND CONSULTANTS 74 Submitted into the public record in connection with • a � i{ tempfli on 55N City Clerk Island Gardens at Watson Island, 1050MacArthur Causeway, Miami, Florida Discussion of the Proposal Restaurant Developer's Proposal (IX--7) There will be 84,012 square feet of restaurant space with projected rents of $60.00 to $70.00 per square foot. Common Area Maintenance (CAM) expense for the restaurant space is projected at $35.00 per square foot. The leases will have escalation clause at 2% to 4% per year, or based on Consumer Price Index (CPI). The developer projects 59.5% of the restaurant space will be preleased with the remaining space leased within six months of completion. The cost of the restaurant space is projected at approximately $590 per square foot. Rent was projected at $65.00 per square foot, increasing at 3% per year. Vacancy was projected at 10%. With a rent of $65.00 per square foot and there being 84,012 square feet of restaurant space, rent revenue would be $5,460,780. Based on a typical restaurant percentage rent of 6%, the required sales volume would be $91,000,000 ($5,460,780 ± .06). This amount is considered excess. Net income in Year 2006 is projected at $6,344,087. Hotels Two hotels are proposed that total 525 rooms. Cost of these hotels totals $155,230,000 (rounded) or $296,000 (rounded) per room. The developer is projecting an average daily rate (ADR) of $247.46 for the Wave Hotel and $305.00 for the Lighthouse Hotel. Occupancy levels are projected at 75% and 72%, respectively. These projections are considered aggressive based upon other hotels in the downtown Miami/Brickel] Avenue area as well as the Miami Beach area. More Iikely would be a lower ADR and a lower occupancy rate. Marina The marina will have a 5,000 square foot building plus 54 slips. The developer projects a cost of $18,000,000 (rounded) for the marina. Year 5 of the cash flow projection is where the marina operations are projected to stabilize. Income in Year 5 is projected at $6,253,000. This includes income from slip rentals, fuel sales, utility sales and various services. WARONKER & ROSEN, INC, REAL ESTATE APPRAISERS AND CONSULTANTS 75 Submitted into the public recordird connection with Item .l i on 51$//9 City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida SUMMARY OF DEVELOPER'S PROJECTED REVENUES Following is a summary of the developer's projections for the Year 2006. This is the year that gross revenues are projected to stabilize. The revenues below are projected collected revenues that have been adjusted for vacancy based on the developer's projections. Retail Garage (Retail) Restaurants Garage (Restaurant) Wave Hotel Lighthouse Hotel Marina Total Projected Revenue $10,194,031 1,349,064 7,924,503 1,599,984 26,278,020 30,018,000 + 10,412,000 $87,775,602 ' Includes 10% vacancy allowance as projected by developer. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with E�El� itemg .i, on c1/19 City Clerk 76 Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida CONCLUSION OF MARKET RENT Based on the analysis herein the market rent for the subject property has been estimated at $2,060,000 annually. During construction the rent should be 50% of the market rent. The market rent will begin after completion of construction or three years from commencement, whichever is sooner. Increases to this market rent should be every five years based upon a cumulative CPI index. The $2,060,000 rent considers rent of $1,960,000 for the upland area and $100,000 for the submerged land. Alternatively, the rent should be 5% of the value plus 2% of gross revenues. Actual rent paid yearly would be either method, whichever yields the greatest rent to the lessor. By comparison, the developer has offered a yearly rent of $2,000,000 increasing yearly based upon CPI. Yearly increases yield greater value to the lessor. This rent is $60,000 less than the estimated rent of $2,060,000 as discussed above. Added to the developer's rent is 1% of gross revenues. To collect an additional $60,000 per year rent the gross revenues need only exceed $6,000,000 ($60,000 divided by .01). Projected revenues are far in excess of this amount. After consideration to the additional percentage rent the developer's proposed rent schedule is in excess of the market estimated rent herein. The estimated market rent of $2,060,000 considers compounded increases every five years. If increases were on an annual basis, a rent of $1,950,000 per year would indicate the same present value (based on an 8% discount rate over 46 years). WARONKER & ROSEN, INC. 1.1' REAL ESTATE APPRAISERS AND CONSULTANTS 77 Submitted into the public record in connection with itema�, .l(on D/y(iq City Clerk Printed on Recycled Paper Submitted into the public record in connection with QE.10 item G:'EI r on .9M 14 City Clerk ADDENDA eaI estate appraisers and consullanls osen RPORATED ADDENDUM A COUNTY AREA DESCRIPTION WARONKER & ROSEN, INC. oe REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public recored�i�no connection with • item on on 5j/1y City Clerk MIAMI-DADE COUNTY AND AREA DATA Miami -Dade County is at the southeastern tip of Florida and is the south -easternmost state in the continental United States. With land area of approximately 1,955 square miles, it is the most populous county in the state and is often referred to as Greater Miami, in combination with its most populous city, Miami. Miami -Dade County is bordered on the north by Broward County, on the west and south by Collier and Monroe Counties, respectively, and the Everglades. The east side is bordered by the Atlantic Ocean. Its semi -tropical location and very suitable climate allow for year round outdoor activity. The early 1960's marked the beginning of the arrival of large numbers of Cuban Refugees into Miami -Dade County and South Florida. In the years following, have come significant numbers of immigrants (some legal and some illegal) from Haiti, Cuba and other Latin American countries. A population of 2,285,869 as of April 1, 2001 marked an increase from 2,253,362 from the April 1, 2000 census. A population of approximately 2,531,000 is projected for the year 2005. Within the county's borders are two national parks (Everglades and Biscayne National), 15 state water conservation and wildlife management areas, four state parks, 135 area -wide parks and 571 local parks, totaling 727 park and recreations areas. There are two professional sports facilities (Miami Arena, home to the Miami Heat basketball team and minor league hockey, etc. and the under construction American Airlines Arena). Pro-PIayer Stadium (home to the Miami Dolphins football team and Florida Marlins baseball team) are supplemented by two local universities with sport complexes. Also being considered is a new home for the Florida Marlins. Other industries that support Miami -Dade County are import and export, air and sea transportation, international banking, light manufacturing and agriculture. The largest two categories of public employment for Mia ni-Dade County are educational and municipal, with the top two private employers being American Airlines and the University of Miami. As of 1998, the top three industrial firms are Coulter Corporation, Cordis Corporation and the Miami Herald Publishing Company. The tourism industry experienced 9.7 million overnight visitors in 1998, with more than half of them from outside the United States. About 90% of the tourists arrive here via Miami International Airport (MIA), which ranks third for international passengers and ninth in the United States for total passengers. As of June 2000, yearly passengers number 33.9 million with 120 gates. Scheduled air carriers number 88 with 33 charter carriers. MIA supports 176,000 direct/indirect jobs in South Florida. MIA has embarked on an expansion and redevelopment program affecting the terminal size, cargo handling, runway numbers and overall land size which is estimated to cost $5 billion. MIA is now the biggest cargo airport in the country and third biggest in the world. Passenger and cargo activities are projected to double over the next ten years. WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with •teE.�a em on fill y City Clerk Miami -Dade County and Area Data (continued) During the first quarter of 1999, according to Smith 7)-avel Research, the county's hotel occupancy was 80% — the highest in the nation. The high occupancy was fueled by a 5.2% increase in international passenger arrivers at Miami International Airport. Over the past 15 months 3,000 hotels rooms have been added in Greater Miami, with an estimated 2,400 new hotel rooms to open by the end of 2000. Shopping, according to the Greater Miami Convention and Visitors Bureau, accounts for 25% of international visitors in Miami and helped buoy hotel occupancies. In the planning stages for approximately 2001 is the Miami Intermodal Center (MIC), which will link the airport, East/West Rail (companion project), Arntrack, Tri-Rail, Airport/Seaport Connector, Metrorail mainline and high speed rail. Located near the State Road 836/State Road 112 Connector, just east of the airport will be parking, retail, commercial, residential and tourist -designed development. The entire development is projected for completion around 2009. The Metropolitan Planning Organization (MPO) lists as a priority the efficient movement of residents, visitors and freight throughout Miami -Dade County while maintaining the quality of life in urban neighborhoods by protecting them from undesired traffic intrusion. The East/West Rail has been approved by the federal government as the most elaborate and expensive transportation project in Florida history. It includes a Metrorail extension to MIA and seaport (with the Orange Bowl -seaport portion in a tunnel) and car-pool lanes on State Road No. 836. It includes a new expressway connecting State Road No. 836 to State Road 112 and a huge rail transfer station and passenger -baggage check -in terminal just east of MIA. Estimated cost is between $2 and $3 billion dollars. It is expected to take at least 15 years to complete. Transportation systems include Metrorail, an elevated rail rapid transit system running north and south through portions of Miami -Dade County. The Metromover automated people mover system is located in downtown Miami and is an off -shoot of the Metrorail system. There are also Metrobus buses, most of which are in service daily throughout the county. The Metromover system includes the Brickell Avenue financial district and also runs north to the Omni area. Other transportation services in Miami -Dade County include Tri-Rail, railroads and taxicabs. Railroad service by Amtrack is accessible in northwest Dade. Tri-Rail is South Florida's commuter train system which services Miami -Dade, Broward and Palm Beach Counties. The Port of Miami, with 75 acres on two islands, is a major seaport in the city. The Port is seeking to expand to the north across Government Cut on Watson Island for a $400 million modernization program being undertaken to facilitate the projected annual 4,000,000 cruise passengers by the year 2000. This would include updated computerized and expanded cargo handling. Steamship lines also actively use the Port of Miami. Cargo through the Port in the first half of 1999 totaled 5,137,336 tons, with nine of the world's ten largest shipping lines either directly or by vessel -sharing agreements calling at the Port. Miami -Dade County is one of the few areas in the country that has established free trade zones. This includes favorable tax incentives and other conditions for projects providing job creation and WARONKER & ROSEN, INC. oe REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with Ce.lu Item irg,li on 518jiy City Clerk Miami -Dade County and Area Data (continued) training, education, transportation, social services, health and human development services, housing and other services. It is expected to be a strong economic boon to the area. The Defense Department chose Miami -Dade County for the new location for SOUTHCOM (U.S. Southern Command), a major military headquarters which coordinates all U.S. armed forces operations and anti -drug efforts in Central and South America. Approximately 800 defense jobs and a $27 million annual payroll is creating new jobs and providing other benefits to the Miami - Dade County economy worth over $100 million in the next several years. Miami -Dade County ranks among the top five counties in winter vegetable production in the country and ranking first in tropical fruit crop production. Farmers grow an abundance of tomatoes, bush beans, avocados, and yucca, as well as nursery plants. The climate is considered Subtropical Marine with an annual average temperature of 77.3 degrees, a 70% probability of sunshine and an average annual precipitation of 79.3 inches. Average elevation is 12 feet. Within Miami -Dade County there are 33 individual municipal jurisdictions. Miami -Dade County has a manager/commission form of government, with nine elected individuals (one mayor and eight commissioners) making up the Miami -Dade County Board of Commissioners, which appoints a professional administrator to manage the daily activities of the county government and a county attorney to handle its legal matters. Its largest municipality, Miami, is comprised of a nonvoting Executive Mayor elected citywide and five commissioners from five districts. Some governmental activities, services and functions previously handled by individual municipalities are now handled by Miami -Dade County. Among these are real property assessment and valuation, health and welfare, water and sewers, traffic engineering, public libraries, public transportation, public housing, urban renewal, seaport, airport, regional parks and air and water pollution control. In addition to these, Miami -Dade County provides services to the unincorporated areas of the county such as: police and fire protection, building and zoning regulation, trash and garbage collection and disposal, parks and recreation, consumer protection and corrections and rehabilitation of adults and youth offenders. Dade's education system is governed by an elected 7-member board who in turn appoints a superintendent whose responsibility is to manage the daily activities of the school system. Based upon student population, the Miami -Dade County School system is the fourth Iargest school system in the nation. For the 1997-1998 school year, Miami -Dade County had 201 elementary schools, 51 middle schools, 32 senior high schools, 18 specialized and/or alternative schools and 28 adult centers (within senior highs or free-standing). This includes magnet schools for each level, with unique and specialized training and unique instructional programs offered to academically qualified students which attracts students from the total school population throughout Miami -Dade County. Several colleges and universities are located in the County, including Barry University, Florida International University, Miami -Dade Community College, St. Thomas University and the University of Miami. Many private institutions at each academic level exist as alternative choices for the public. Supported by $14 million in federal and state grants, a 400-student aviation program will open in 2001 in Homestead in as a part of Miami -Dade Community College. WARONKER & ROSEN, INC. va REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public recoedbn connection with otem c2f �' on g -City Clerk Miami -Dade County and Area Data (continued) In 1998, Miami -Dade County had 26 hospitals. The largest institution is Jackson Memorial Hospital which shares many teaching, treatment and research capacities with the University of Miami. During its history, Miami -Dade County and the Greater Miami area have experienced significant changes, especially during the last 25+ years. Trends indicate that the southern portion of the county is rebuilding and will sustain employment activity primarily in the construction industry. These attributes coupled with a supporting base of both public and private services are interdependent in attracting new residents and businesses into the Greater Miami/Miami-Dade County area. Sources Florida Statistical Abstract The Herald lMliamt-Dade County School Board Miami Today wwwstatell.usiedr/population.htm Port of Miami Marketing Department Miami -Dade County Miami International Almon Miami Daily Business Review WARONKER & ROSEN, INC. ♦i REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in conneftion with item e�r� on City Clerk WARONKER & ROSEN, INC. 44 REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record/8 connection with item on _5181r__ City Clerk Island Gardens, Miami, Florida Flagstone Properties, LLC Financial Return to the City Introduction: Flagstone Properties, LLC is pleased to respond to the City of Miami's request for proposal regarding a Mega Yacht Marina and mixed -use development on Watson Island, Miami, Florida. It is the commitment of Flagstone Properties, LLC to adhere to the City Charter requirement for compensation equal to fair market value. Tenant: Flagstone Properties, LLC Size: Approximately 10.8 acres of upland and 13.4 acres of adjacent submerged land. Lease Term: 45-year initial term and two 15-year renewable terms. Rental Rate: - No lease payment through public referendum and through development permitting and approval process. Current estimate for this period of time is 14 months. - Fixed guaranteed minimum annual rental payment of S1,000,000 per year, paid monthly, upon issuance of building permit and start of construction, through the receipt of Final Certificate of Occupancy. Current estimate for this period of time is 24 ,months. - Fixed guaranteed minimum annual rental payment of $2,000,000 per year, paid monthly, shall commence upon receipt of Final Certificate of Occupancy. This rental payment shall last the entire term(s) of the lease and shall have an annual escalation tied to the Consumer Price Index (CPI). - At the start of the 4th year of occupancy, a 1% of Gross Revenue payment shall commence and continue throughout the term(s) of the lease. This Gross Revenue payment shall be in addition to the fixed guaranteed minimum annual rental payment . and shall be paid at the end of each year of operation. Payments: See attached schedule outlining financial return to the City. Jones Lang LaSalle Americas, Inc. Submitted into the public record in connection with item 4f ti on lY City Clerk Island Gardens, Miami, Florida Flagstone Properties, LLC Schedule of Financial Return to the City Notes: Year 2032 Is ldto481ed for development epprovaJ and pemwss Years 2003 6 2004 project Is under construction, during which time rental payment Ls S1,000,000 per year Percentage Inc ease of 3% 1a based on Menial estknatos and historical CPI 1 % of Gross Revenues COMMenCea durhg 4th year of occupancy Estimate of Gross Revenue Includes art project components Percentage Estimate of Additional Rent Increase from Guaranteed 1% of Gross Gross as % of Grose Total Annual Year Previous Year Rental Payment Revenues Revenues Revenues Rent Payment 2002 S0 30 S0 S0 2003 21,000,003 SO 20 $1,000,000 2004 $1,000,000 30 SO S1,000.000 2005 32,900,000 573,831,353 50 32.000,000 2008 3,0014 52,060,000 581,357,582 $0 52,060,000 2007 3.0014 52,121,800 394.133.138 30 $2,121.800 2008 3.0014 52,185,454 1.00% 598,458,001 5984,680 33,170,034 2009 3.00% 32,251,018 1,0014 S103,067,659 51,030,677 S3,291,694 2010 3.00% 52,318,548 1.00% S107,090,618 S1,070,908 33,389,451 2011 3.00% 32,388,105 1.00% 3110,380,395 S1,103,904 33.492,009 2012 3.0014 52,459,748 1,00% 1113,763,525 51.137,035 13,699,783 2019 3.00% 12633,640 1.00% 3117,083,559 11,170,838 ><3,704,376 2014 3.0014 S2,809,646 1.00% 5120,638,065 S1.208,381 53,816,927 2015 3.00% 32,687,833 1.00% 4124,257,207 51,242,572 33,930,405 2016 3.0014 32,788,468 1.03% $127,984,923 51,279.549 34,048,317 2017 3.00% 32,851,522 1.00% 3131,824,471 $1,318,245 $4,189,766 2018 3.00% S2,937,067 1.00% 5135,779205 11,357,792 S4,294,859 2019 3.0014 33,025,179 1,00% 3139,852,581 31,398,628 54,423,705 2020 3.00% 30,115,835 1.00% 4144,048,158 51,440,482 14,656,416 2021 3.00% 23,209,413 1.00% 3148,389,603 51,483,696 54,693,109 2022 3.00% 33,305,695 1.0014 S152,820,691 31.528,207 34,833,902 2023 3.00% $3,404,868 1.00% 3157,405,312 S7,574,053 54,973,919 2024 3.00% 33,607,012 1,00% 3182,127,471 $1,621,276 35,128287 2025 3.00% 33,817,222 1.00% 5188,991295 S1.689,913 35,282,135 2028 3.00% $3,720.689 - 1.0014 5172,001,034 11,720,010 55,440,589 2027 3.00% 33,832,207 1.00% $177,161,065 $1,771,811 $5,603,817 2028 3.00% 33,947,173 1.00% 3182,475,897 51,024,709 S5,771,832 2029 3.00% 54,005,588 1.0014 31137,950,174 41,879,502 55,945,090 2030 3.00% 54,187,656 1.00% 3193,588,579 51,935,887 48,123,443 2031 3.00% 54,313,183 1.00% 3399.396,340 S1,993,963 $8 07,148 2032 3.00% 34,442.878 1.0014 3205,378,230 12,053,792 10.496,360 2033 3.00% 44,675,955 1.00% 4211,539,577 S2,115,396 36,891,251 2034 3.00% 14,713,131 1.00% 12t7,885,764 S2,178,858 S6,891,989 2035 3.00% 34,1354,525 1,0014 5224,422,337 17,244223 37,098,748 2036 3.00% 55.000,161 1.0014 1231,155,007 /2,311,650. 57,311,711 2037 3.00% 35.150.168 1,0014 5238,089,657 S2,380,897 S7,531,0E2 2038 3.00% 55.304,670 1.0014 1245,232,347 22,452,323 37,758,994 2039 3,0014 35,483,811 1.00% 3252,588,317 32,526,893 57,989,704 2040 3.00% 35,627,725 1.00% $260,188,997 52,801,870 P3.229,395 2041 3.0014 $5,796,557 1.00% 3287,972,007 32,879,720 $8,476,277 2042 3.00% 35,970,463 1.00% 5278,011,187 52,780,112 58,730,665 2043 3.00% 58,149,667 1,0014 5264,291,602 12,842,915 38,992,462 2044 3,00% 16,334,054 1.00% 1292,620,247 /2,1328,262 19,262288 2045 3.D t% 38,524,076 1.00% S301,604,855 $3,018,049 39,540,124 2048 3.0014 S6,719.798 1.00% 3.310,853,000 33,108,530 t9,828,328 2047 3.00% 38,021,392 1.0014 1310,972,S90 13,199,726 $10,121.118 2948 3.00% 37,129,034 1.00% 5329,571.768 13,295,718 310,424,761 Subtotal: 3180,095,818 38,193,119,370 S78,438,223 S268,535, 41 Jones Lang LaSalle Americas Inc. Submitted into the public record in connection with r .Ie 'itemi .l+on5/1/y City Clerk Preliminary Construction Cost Model Island Gardens Quantity Unit Unit Cost Total Cost Retail 137,216 sf $ 87.48 $ 12,003,043 Hotels 517,950 sf $ 167.68 $ 86,852,404 Wave Hotel Lighthouse Hotel 239,986 sf .277,964 sf $ 157.05 $ 37,690,558 $ 176.86 $ 49,161,846 Restaurant ' 84,012 sf $ 98.13 $ 8,244,042 Marina Marina Fish Market Marina offices 40 slips 1,593 sf 5,000 sf. $ 15,106,499 $ 14,354,427 106.86 $ 170,225 116.37 $ 581,847 Parking 1509 spcs $ 15,397.87 $ 23,235,391 399 602,346 sf Sitework 10.8 acre $ 12,958,181 Recreation Deck 121,580.0 sf $ 6,500,564 Offsife Infrastructure 1.0 Is $ 350,000 Maritime Gallery 4,000.0 .sf $ 325.00 $ 1,300,000 Grand Total 1,473,697 sf $ 166,550,125 7/9/01 Summary Page 1 of 12 Submitted into the public record in connection with Item rrzr; i on vsllti City Clerk Island Gardens, Mfaml, Florida Flagstone Properties. LLC Net Rentable Ana (SF) Combined Portfolio SUM Ljattthoost Xgtal(. $¢tell Datum(' HAW Hotel Edwina Anton 115,634 84,012 232,988 277,984 5,000 713,603 Construction 8e0tn Crete Jen-03 Jen-03 Jr.03 Jan-03 Jsn-00 Jan403 Construction End Date Den04 De -OS Oeo-04 Osc-04 ttec 04 Pro-04 Tots! Project Corr S58,8S8,181 349.370.433 372,101,001 S83,_034,455 317,600,512 $131,260,662 Hard Costs 347,002,051 539,907, 971 381,928.271 S71,631.515 S16,033,847 3236.701,755 Sots Costs' S11,856,108 S9.482.482 310270,730 S11,202,640 51,768,885 344,668,604 Project Cost! SF S504.84 5587.88 12C0.84 S298.72 3,560.10 WA Equity Requlnmsnr 323.543,264 S19,748,173 S28,678,800 V33,213,762 S7,120,205 S112,604,228 ConstrucelortLoanAmount' 535,314,898 S29,522, 60 343,318,201 540,820,673 310.680,307 31111,76f,337 Net Renal Ret.ISPLF 556.00 185.00 3247.48 S305.00 S2.00 NA Yield on Cosr Buts You tor Yield art Cost Calc N.q l StabtSltsd" 11.6854 12.71% 12.02% 11.36% 33.56% 2005 2005 2008 2090 2009 S6,875,945 S8,274,998 38,678.000 S9,435,000 S6.253,000 WA WA • e rdudss Comb otkrt Financing Cosh Al project s1ab81zatlon, proledad to be 2005 NOTES: Above tabutetfaa for Notate end Marine ere hard keyed entrees. RitM e+NEt A8SOMPReN3 a:Naa end Rsaterrarda Only) Loan to Veto Ratio 60.00% Loan Rate S.00% Total Ptoisa Cost 3 110.9220270 Construction Loon S 68,653,762 Equity Requtremeol S 44,369,153 STA61LRED NOS (Reese and Restaurants Only) Retell Restaurants 3 8,875,945 S 6,274,99(1 Total S 13,150.943 Tott6 Pruned Cost 5 110,922.970 Total Project ROI •11.66% (tEstOUJAL SALE (RetW and Reek raM/ Only) Gress Wes Pricy 5138,430,983 Cost of Woe (2%) (52768,620) Net Saks Proceeds S135,652,350 Total Pre}ect Cost (S110,822,9701 Proil 324,739,103 Reeiduet Bete Hiypothedosl Re.Muaa 8414 Year 2005 Cep Rate 9.500% Bales Coats 20o% Narlwt Rates Retail Leese $58,00 Per S.F. Rataa T.L 5200.00 Par S.F. RaWB O, . 32825 Per Z.F. Rcstaatrtis S85.00 Per SF. RnL T,L 52S0.00 Per S.F. Rest. O.E. S2625 Per S.F. Cap. Reserve* 5025 Per S.F. dote; Fklancktg Assumptions Include ConStrudloo to interest whams Summary Table above does not. Stebi42ed NM OneradNo Incomes for Retell Ind Restaurant portions are based on one year irons RRebRtution end re nkrdated "above the tine esdWinA Cspeat Reserves Jones Long LaSa5eAmericas, Inc. Submitted into the public record in connection with tZt i tern on Li' City Clerk Set2lon Vtl 7711101 141.00 034r6.rls, 71I.ml Florida So0101 va P1*311One Prop.A1.., LLC In1N 1311 seOlt 'OtaOare•a...iurl�.wr. v....W�s+... Island Gordon, (A.ts%i) Summary ar A»umpluona Los stop EwOon.k6 Cis The &Slip Hsi Raaada Rahn Fad 116.534 Tenancy tibd Cod Cad1.nf 2.62 ICC , G.O1a 6goan F044 137.216 V.pnc C .6X Cosa (% 0/ 11161.11 R. inwl 10.00% AR Fen. ao% Tow HG Lana PLdor 16.00% D.w100.5.0 roll ld% Total11C G.O.M Ryles B0L COI Co itgtnty SB% Tolal aaa Costa Regan AL..nosa By. R.6 3.00% O ld.r$ Risk Poem.. 0.0011 Tad 11C 106C311401 &OWQW 6,634 SP 101.1101 3.00% 116Wort 030.S1 14C F04,061.0061 73.000 6Y 0040011 1.00% 1a/r.fv0dVs tn#a SW* lac Pn4..a 00.6100. ,1so0 35.000 aF Antlgr 3.00% P.tt.p 6VO0h.rs OINs 064*.d 457 Annual AawpOon 10.211 1F WAN R.ha 10333.030L li2302131 , a,oa2 nx, a P66i+6 OM Pee IS0.00 SRS.00 T1wa 1regramtorts Ott 0....*.t1 o 11300A0 330000 Rnanaln0 C5n.Y+c%ow Casty C+0.a1 Palmy. 1021 1023 Co.Ut0a0d1 .. t.o.t 62a0112ad 0p.r.uq PXDwuu 323.21 32623 Lam To Y.106 Ratio 10O0% 02.155E T010 Cost% % sLY 504 ela501a.4 Root 01.0 Tom 34.73 1a.71 Caw 0aa. 0A04. Oreoeatass. 13.16 63.06 Loom Hal 1.0315 WA 10.00 $0 .0.00% COrtrokulora11.641373 f.a L327,214 33,711,711 Cen+*ksloN Pr 11.F. 434.20 13136 60033061la 1 1.101.140 111$0, ffi Law HMO p•r Claaspe Put Bpa06/0ty S420 3120 Buss tA.&Sng 567.44 3t2003.0,16 20.30% 1st O.warMsan 7rs 3300.00 321.374600 39.636. ll..ldva7 Sal. P.rlln0 Maria. 315.307.17 07,036.627 11,06% leMlatlVCWn Cc.I 30.06 3A 0.00% R.010,411414 Y... 2013 Sao 11001 030.63 T3,463 9O3 3.93% Cap R.L 1Z00% 1090-7plat 093.16 343.353666 72A1% Bats Casts 2.00% Hard Cad Ce• ritirn0y 14.63 }1,146,311 1.091( 10711. pstai c+TIURD 00676 3a02.09 117,002,051 79.66% O.W 00301 &Pro 2.0012 12 Audios L ErptorwIro 330.3.5 33.320.122 1.7661. Land w./ 5..o4.4 30001 Pivots 1030 10 0.30111 Mayo End / Coroinrd5.. B4961 401-07 24 70,16 L 2r04300en a arrow,. 30.43 353003 0.1014 C00,33,e00e era I Laaa.aro 6•01•+ 15.004 lemma Pen 33.00 is I1,6N 0.70% II7ablera00a I taaf..Oo 30r.41 J0-03 Laos' 12.10 1.3/3,040 0.11% 011/ 1M. 4 401 evade' RYt In.tar•000 30.00 30 0.0011. Lossa Up Coarno o. n.A Jan -OS W,tiOrg 33.00 0274.433 0./70. R.al rids TIw Dorrd Coral 30.40 017.472 (A314 Land Coll%prow:Mp C011••c51001 f L.aatq Fea. 31416 33,336,003 11.70% LwdA?.rory F. P 10.00 10 0.00% Not Amos 2.121423 lit Acne 21010 11Od L1123110 t3n•abpn.vrt Fa. 117.13 12,350,103 3.73% 11/.. 61 Sown NO Parilrg 1110,300 Mal 14A4 2/ C1341031130VrodIsmost Cams 11..23 3171,320 020% Lord V 4Ls or D.1. of P 44*.* 10.00 Saga 8.1030 0UO3 13N/ 26 Rust Es1a1. Ts. to to Cond. 50,W ia7.230 0.131E , 10 101o...pawn T11 Aa16e..t. wows Y. Low Foos t7_00 t374 432 O I7% Pah1p 6aruabo Aro, Addad .o t7.1 Av..Oo as' Wo.t OM 00193 1 111d761I 307,74 311,a00.103 1027% Fp4lpr1d of PM1n0 awdan 11.122 ArtMa4 L hgaw.h0 0033 011661 1a Solt Cost �LLt�w,o) 3191 3456604 1.71% ■ 0f spaco. 7ovgd to00 tow � 457 P.rs OM, 01701 1 0'YAL 7PROJECT a06-f COSY5 113, b3 311.614.10. 20.1., % of tow Pondoo 69404 aa.ep.d to 04 oa. 45.764 Talc a kl8Q.d ona a aster 014X1 OVA 1 Laud As.. A1oa(td to 3eddr p F9dtr'nt a1,661 Wood F6.1 01/03 01A13 t Upr 01A2 03413 a2 rota P.elod Cnb &scum 11a1151,161 100.0071 Fist Ysr Aew..t Ursa Parma wi to Cty 0f ago 3361,111 BOL1.0. MR N.ommes 01.41 0103 1 3hr.s4p 01/03 00101 30 CbWad100 L.an 150271 155.314,116 100311 11441 6s.M Ta3 Dein Cr%L 0203 1210E 24 COmmlrafdai / Last* F8M As Moods ,sous M. 11gostylia plronwtl 1201.111 13.1/3.26/ 40.001E o..mepnw6 Pie 01/03 13A04 2.4 R.a1 blab 7306 to fo C.n.L 01/03 01103 1 Laen MKS no 01123 1 M16.K 11163V0rk Indoi .s .30a0en of 314.00,06 outs*.. hods red 002140 Risk loserases l.dod.d V!'Cakrauon 043 ro. 004 6.4500 Yaws 2003 L 200410Cb7 0011 et 00 Land L6... Rata 0P60 this 0e310:00, WW1 Soma Lavlp La1Sao. Amorkas, 7rta Submitted into the public recokd'n connection with item nE. it on /5/1y City Clerk 7/11/01 ---. Flee waxer r111 .,rces. u.0 44M 0..da01 CRAM) ATOM Cash rtew p,a bns RENFJ6Al0 600001404 PI, -Lags• Are:hat ton -Lags• 00004,04 Maor«Ma Y.aro7 Ab.ma/ p..al.eKgd vac oar Ab..00► C44094 lnea w0 TOTAL RLYVIVf1 Do7riL110 R4ta6 00441114V EI-0..03 Ratal 11M !Rats Twos Rota 0rour41 Urssa TCTTAL axg tUUE1 mat 2➢41 2045 240 2�0 ..201 2110 2011 tau O a 20,141 342)549 304.171 4t)3.702 411.131 430,17/ 440,311 431.101 O 0 4200001 L331,900 <.403,760 4,519,133 4,177,/37 4,64051 6.011,020 1,1/3,410 0 0 1,0 9,000 2.011.100 2,070,304 2,141.743 2.205,007 2277,177 2,04A 5a) 2,410353 o - 0 0 4771,213 1,)01,292 4,737221 4,170,340 1.023.720 1171401 1.331,712 1411,747 0 0 0 (1.041038) (1,112,070) 11344.e30) (1,201,110) 11237011) 11274,040) (1,311.071) n332,4.7) O 0 0 131357 0 0 0 0 0 0 0 O 0 0 1,370,04 4340,034 1340014 1310,064 1.349.054 1,240,004 1240.064 1,310044 O a 0 11,501,200 11,543,005 %Luton 12.140011 12.440337 11... 13,00731 13.141219 O 0 O 0 O (1i0,530) D (100356) O (3y61,143) p,163,a02) (3.241.007) 13345330) (3,445,901) i3i402530 93.033.717) (3.705.434) O (1 A70341) (1.031.154) n.012.600) (1.116,110) (1.141031) (1.113.004) (1216317)- (1264,143) 4115,0771 (333,103) (104,0090 (400,434) (411.627) (431116) 5444.121) 047,144) (47116/1. (105,077) (14e5293) (1301257) (4,737229) (4.079.340) (3.023,726) (3,174.400) (3,331.713) (5,401,747) II07 CCEf &T040a4C9441 4011:10 O 41400301 (145.077) 7,123,011 1,903,443 7.111,110 O 0 0 2,625,370 4,050,173 a C06440044. 0 Cap704 Row.. 0 A4ta61ra 0 724(,113 7,411,030 0 7,144 037 0 7,034.044 1,1329.321 9 0 0 0 0 0 0 0 0 0 0 0 29,150 30,033 00.034 31,162 32,i11 35,1*3 31,017 35,191 0' 0 0 0 0 0 a 0 0 0 0 CA341 FLAW 0 (110356) (104972) 7,044,706 6,013.010 7,010,762 7,252,70) . 7.420,112 2912234 7300,730 7,0E1 01 wt Lr10 ►atchra MAD CCMT1 Baas 0A0 131 O0.ra0i0 771 P.14.0 afros. IKosonosOr0 Cal 0t0 Wadi Bab -Total Hrd Cast Cooanes ,c7 1o7u PROYECT MAD 00474 O 0 0 0 0 0 0 e 0 0 0,001319 0001.510 0 0 0 a 0 a.' 0 0 O 0 0 23326,603 0 0 0 0 0 0 0 b 3310,413 1.616113 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 a 0 0 2216,703 172.241 0 0 0 0 0 0 _ 0 0 0 7,016,741 10,102_111 9,319,107 23320100 6.5,419 251,506 277,19e 043,170 a O 9 a 0 e 2,012,145 10.e41116 0,757,031 23.909,070 0 O 0 0 0 Corr COaT4 redoled & aorlag«/q z u4.094 544,02S 0 0 a 0 0 0 0 0 0 Punk 0 0 0 0 0 0 0 0 0 0 0 T,pi 0 ios014 axe 6 6. wya 0 00,00) 0 0 0 0 0 0 0 0 0 019101fa l 0 411,010 0 0 0 0 0 0 0 e 0 61161 N,021 04.011 00A11 40.001 0 0 0 0 0 0 4 Fades 101 % w..aa 0 0 0 0 0 0 0 o a o o slnl.MO a 100.710 100,773 54.540 0 0 0 0 a o 0 Rad ESUO T0.0109410 Comm. 0 301.730 s05.734 0 0 0 0 0 0 0 0 Ca4e01Uto1101Lonbq Fro o o (3) 3.9.00.007 0 6 0 9 0 0 0 Lard Advisory Fat 9 0 0 0 0 0 0 0 0 0 0 rgoeb;eroont No 0 1.173401 1,114,051 0 0 0 0 0 0 a a0 �Cyq 0 171.020 0 0 0 a a a 0 e 0 0 0 9 D Rat Elias Tugs up to CaOI. a 07,130 0 b 0 0 0 0 0 0 0 Lam rw 0 311432 0 0 0 146.:44111 7-314.110 0.234320 1.001.563 4.000,646 0 0 0 0 0 0 Io1 Coot 4c6 04,104 130,141 17,603 163.090 0 0 0 0 0 9 ;444274 3,344,710 4?902.12 4.2g141 0 0 0 0 0 0 DOTAL pRBlCT SOFT CORTO 'OM PROJECT 00*3* Janes Lang LaSalle Americas. Inc. 0.130,139 14476093 11310.162 21,173.404 0 Submitted into the public record in connection with item 121ii on 5/5/I11 City Clerk O 0 7/11(01 REVENUES apseLUM (70610 414,77a 109,770 St12+1 320.tro 6a5.500 66I,031 6.6C1,216 M-1.+444+ . 1.020.434 3,+10.P17 &044,446 j,s17.71I 6,0ea,100 5.167,842 0.3'S2,1T? 7(1.115.436 M-(,(110 beakaa 2.112.140 2,132,355 2,614,096 2.713604 2,904.491 2.17/,126 2,161,ere 3e,451.671 R.aey..+.. 4,676.400 3.126.194 0.000,940 4.111,630 0.134.440 1,557,433 1.734,136 62,975.516 014444q. 44e..e00. 0.702.041) 0.434113) (1,4771700 (1.372,214) (1j67,100) 0,614,117) 0,043.3641 (20,434,604) M.M30R/011bawler A2arN01 a 0 0 0 0 e 0 531,6G7 41.140. Wawa 1.341064 1,540,064 1.340.061 1,341,064 1.349.004 1940.034 1.141054 20,211,500 TOTAL REVENUES 1304e.136 I4,202,557 14,641963 15,041,1113 15,450,016 16.613.,314 '6,310,30 204,856.,015 D6'EKSEO P. 46 00444Mo &perdu (1171.307) 3,994940) 0.114.3011 (44136A210) (4.36.50701 (1,496.123) (t.631.000 ($6,043 ) R.1J R..1 C.4.. T.m 0.202.711) (1,331.613) (7.371131) (1.412.674) (1.449.053) (1.(►t,7001 11,1147,6700 (16.961,075) R.1M accurst L011. (415.301) (469.1021 (314,634) (b10.326) (646.213) (562100) (371.477) (7L491,a24) TOTAL E7f0EN5E6 0.610.400) (5120.101) (0,000.010) (6,111,010) (6169.440) (4337.4333 (0.754,4561 (83,416,124) NET OPF37.LT040 04.011E not sae Cor+r42710n0 C*01s1 fi.1.rv1 A311stNla CAEN Flow 1329.937 1,410.363 1.046,961 1,367,979 0,0032647 1,373011 9365,166 121240,491 o a 0 0 0 a 6 6,875,945 0 0 0 0 0 0 0 0 36.037 24.543 30,10 40,012 41.673 12,120 44,100 642,316 0 0 0 0 0 0 0 0 1,192.900 1.306,317 3.609.793 6127.517 1LO54.074 9.203Ab/ 1,521.611 120,698.17a 40 Lad Px hu1 0 14.140 COATE ass, bullaso 1 u 0..44.s.3,4.T71 Pah4q 914t420r/ hlrylnrd0.1 Co04 011 wan two-T0u) lord Coa carsinp.r..y TOTAL PROJECT P R0 COTE 0 0 0 Q O h 0 O 0 O 0 O 0 0 0 9 0 O 0 O 6 O 0 0 0 0 a 0 O 0 O 0 O 0 O a O 0 0 0 O 12,003,005 • 23.326,Eo0 0 7.036,8ZT o a O 3,405,095 o 45,655,600 0 1,143,301 a 47.002,051 /OFT Co671 A1d14.d 1 E51 eAq 0 0 0 9 0 0 0 2,620,123 P.m,n 0 5 0 0 0 e 0 0 T.rb 1 1.4404441064 A 644..7. 0 0 0 0 0 0 0 64.033 Input loss 0 0 0 0 0 0 0 411,640 Lac* 0 0 o o 0 d 0 343,040 O0t4sf1 DOM Insurance 0 0 0 0 9 0 0 0 14•41.11w o 0 0 0 0 0 0 274.4:4 13...1 e1.1. T...s 6449w Gar41 0 6 0 o 0 0 0 617,472 G.n.dkrfons J La mop r»s 0 0 0 0 0 0 0 3,996,004 L.na ae41404rcw 0 0 0 0 0 0. 0 0 Desitiagroal Fa o 0 0 a 0 0 0 2,350,103 4100flocauE,nwm«aCols 0 a o 0 0 0 0 171,520 R44103U06 513311 0110 Colt1_L o 0 o a 0 0 0 62.330 Loos, Foss 0 0 0 0. 0 0 0 274,E 6cPTO1N 0 0 0 0 0 11,403,1CO boll Gat Oertlyeooy 0 0 0 0 0 450,034 TOT ALPRO.ecT Part COSTS 0 0 0 0 0 11,050,111 TOTAL PROJECT COSTS Jones Lang LaSatre Amerces lac. 0 0 Submitted into the public record in connection with item r :jr on 518//Li City Clerk a p 0 50,650,102 7n 17O1 • tsierld 43.614616, 4431101 Fl6tM. novices, Prop64tk1, LI.0 Sealon Vt1 Island Gsrdens(R.$tiurant1) flummery of Ansumpt1ons r.w au.ce...omennanr.l.rt..t+.nw.n.at,..r«. rho q NA Rare.01. Swans F.A 114,013 Tyra ey dots 04•..e PM 04,012 Vanancy4Cn9I Loy r: of Rant. Rewou.) loan radar 0 00% Geo.016.64 Raa.+rn Ab06rpWR ISSN Raft 4oen teas Spam 34,012 6f tt6atic.. Pa jO as. 60,000 67 6p.aAna.. spa a t.+l.. on Pr. -Wu Ie6.0o. IAY4N Rli n Wt s.m.t 6 mantas Law Rd. 1e3.00 Tenant tmpeowlydr (id G.rnn2on) 5230.00 f1I10670(1 Caaswc4o.. Cod. apt. Ream+ Eleblcl.d Opefath21 Expanses Folios Id C Gatt a1.TJd51 Sta06zIal Real E0al1 Tma Orautd ism LBW so CO f0 o20o% Cooninionset.atp Peas Cammtaabna PM 57. la.aa i41. Pa 0.r.0.601Wdy 6a1. 1346.1k.0 10e.13 14,244630 10,70% is' o.neaLOO Th 123000 321,033.000 4234% R.sldul We Psatbq 6su0ws 11131747 34,341,841 16.10% td.. n.U..s 006 1040 10 003% Eta Wa.t 430.61 1,341,022 r/72% RWroet 641. Y... liob-Tolal 103.44 132_034,406 /1.16i up 0.4 Haled Coat co.ul)wlcy 11130 1173,303 1,e7% Italia Coda SOTAL PRCLIFCY )RAR 3 cotT6 1476.03 t31A07,371 1043% 69Et17fl Arc+.e.d i f:npwtwirq t2430 12,304471 4,t5% Din* neat. Jan02 12 61...1a 1303 3O &to% Land O.N 0e.ogd .1.e01 Teat. & In.antt11n1 & ;wow. 1043 136,123 0A7% 0a32r Eyed J CAm6aubo Span .34e433 23 lama f.a. 1103 tt52.034 031% Cewd.oltlon End Tl..c.«ap Baps' 0..04 taps' tam 421gaso 0.t3% a.blsolo6J Lamm* .Mn03 ,14-01 tY/dOh 10d kwa+t%. 1000 10 0.00% 6.0 0.1e .i.40S 31/4.1a6 WA:e4'4 i2A0 0104,024 0.34% Law tip Coennanazternnl 16.01 Red Fine Tams putt) Mast i4.30 11775.014 0.T7% Cosi 31pra4dln6 CermnlisWw1 J UNION has 33017 11340.029 4.77% Land ld. a *Meng Pee ICAO 50 000% 131633 306 ZmaQt 0..efnurne. F.. R3.73 11.111,339 4.04% 14.1 AG..ge 1A00/17 146 Aare Pe449 6irasta. 01A3 12J04 24 Cba4O/131 6C6.4..o1 Comb 1113 1103013 0,21% 43.011 60a149 NA hue Wiling 01.03 13.104 24 Real Fala.. Tom up N Ca.ul_ 10.40 16Qt0T 0,10% L.e.e Name sl pals 04 Pwthas+ 10.00 1A 0eae.Wne 1T1 A. 4....rE. am.4 0. Von feet 02.00 t164,o24 034% 6oi-Total 00630 11/003331 14.43% Ard.t.d a fyt)t.e ft OSXG 6100 11 6041 Goat 1433 mom 0.74% Parting Sko2tpro Ant A60.d to NA OM) Perrot. OCPU 1 t1tZi.olp CT s 41 rosTI 11 t233 20,402,402 1..1714 Peatanni .t P...iaa Wanda. e1,1 a 7000 & e.1plCb.r 0 inne 70 01003 QI103 1 N sprats .load l0 5* nu a 642 Impact fly 01A3 01403 1 % of 6o10 P.AttQ spar+. 1 ooHad a 0aa me 1.4,2114 Leos' 01.03 01401 43 Taal Pna661 C466 1347.111 743.3713.473 103.00% LAM AM, A106Wd t0 Pinto FOoy. 1 41,431 164004 R146 kaon.to. 01103 01A3 1 lsart10•t0 0143 06703 30 COMLYtAaI L0M f352,60 523 622.260 6000% Fled Yew Annual taw PST.16. to C67 a .ale 1114.411 Real E1.4 Tem Daft Caret 04A3 10164 24 Gn.41Wom f Lsa1FO F..* An .seal .teamna FOay ROpu4ta.n1 4235,20 410,744.171 40.09% 0 moles nac Fn. 01403 12A1 24 R.ar Eatea Taxes op to Cant 0143 61A3 1 Loan fw alas! otn03 1 1,a *slop Eta noml cs costa 14133 CO6 Ceettt5d•0Y 2 E% I10 10.00% NZ P... &A% Twl 143 D.v.lopmwd Ion 4A% Te1M MC tat Cad eania 0•n07 60% Idea sal Costs 3.03% 6W Wl Risk hward 04011 TS. HC 3.0014 Ste Mat 330.31 H0 300% p.esa4ruolum tans)) NC 3.00% Parting 6kucl ra 61a1. R.aul.d 442 1325 Coas0t61o6164n 5261E Loan To V W. R 103 6400% MTh Lora Rat. 6,00.E CI. le Loan Feu . 1770% 9}40Ari 230.77 Ineetii.ed NCH t 1.274.114 • 2003 11.00311 2.00% 110446 4L 4Lbrt kW.* MOca61.. of 8MO.w.rn mnoo.tert of 11.3e6. Pam.+...c mww. wrt ►reran.' 0 040140 In Con00c4a1 514 ter gas. 6,03.0 Ye... 2003 4. 2004 ornp107 30% 016. Land L0ea4 Rale doing 6n1 pomkudbtt naiad. .!ones L. LiSszke Mtertcea, 0etu Submitted into the public record in connection with item r€;.It on ;,,b`:'_ City Clerk 7J 11 J01 r wy 0..__•-__J�r- ..-, + .2 OEVEKIES 90.00p042 Abana44 woncyA-Ortn00 Pn- 2401/23sd Viand A10.0oui Gyps Owed Try711. 'L0417E9 11.4` 0442.0602aleo.N4) ►,..0.6 Can row' P., jed04r.6 7aa2 iC4] Nat 2123 2420 22aZ 2200 2271 tal0 2211 tau 0 0 1,750,20( 2,277,103 0,346,417 1,415,779 2,414,713 1,002,000 2.639J07 2,71/911 O 3,250,000 0347,500 0,447,020 3,611,763 3057804 3,717,041 2.1110.070 3,907,090 O ;.027,353 3,100,400 7.2/6,012 3174,017 3,471300 3171,662 3,1340.110 7,797-'64 O 0 (722.754) (210,2002 (000.013) (034,123) (902142) (917,000) (1,020.741) (1,0313631 0 0 353,726 0 0 0 0 0 0 0 O 0 1,466,030 1,610,004 1,600,064 1,500,904 1.600,104 1310,914 1300,066 1311.054 O 11,403043 9324,417 0,7112312 10,007040 10,250.307 10,010p42 10,706,631 11600/14 0 Rolla 00420,2 E>'040320.1 0 7 0 (2,Z63at5) R,271,474) (2,371016) p,400,607) (7.443,101) (7 PA WI CZ71261) R712.250) RM.1 Reel taws Toss 0 0 0 (771.103) (707,110) (771,173) (107.2697 1117.307) (032.161) (677,734) (9044001 RM/0nv4 IAA. 0 (22,444) (71,520) (147,317) (114.761) (1503.21) (101.04101 (163441) (170.012) (173,040) (101,210) 707.44.1577'E34ftl 0 (60.444) (71.52t2 17,067,767) J,110.400) (3375.61I7 (1,574,007) S3.433.70) (7,071, 94) (3066.956) F6797.544) 0 (00,144) (71,S20) 5,777371 0.044p07 0,408,410 6,172Obi 6.T67.643 6.031i14 7p00,7o0 734.4041 146700tRAT940 P410440 0 0 0 3,102,055 2,172.044 0 0 0 0 0 0 .•N We 0 0 0 0 0 9 0 0 0 0 0 Corsdt47062 0 0 1,603 3Z.222 23.031 02.530 24,340 25,010 23,711 70,241 27,134 040024 41020,44 0 0 0 0 0 0 0 0 0 0 0 A34..4.w o 0- 0 0 0 0 0 a 0 0 0 0 0)9,441) .L13,331) 4750,000 0.331,134 1.,402,771 40007333 8,751,976 0,913.744 7013.151 7137.333 C4441 RUN 0 0 0 0 0 0 Net Land Pam... 0 0 0 0 0 0 HARD COSTS Dee. 212100.2 0 4,123.016 4,122,010 0 441 004.0.40020 7 0 0 0 0 21003 000 Prktp CescWn 0 4,171.123 4,172122 0 14.02322.020.4 Ce.I 9 0 0 0 0i.ri0rt 0 1.341,972 0 0 O 0 o 0 0- a 0 O 0 0 0 a 0 O 0 0 0 0 0 O 0 0 0 0 0 0 0 0 • 0 a 0 000-70U4 0 9.636,704 0,294,1a 11.003000 Haq Cool 422425. pw+p7 0 240.019 207,371 523-072 TOTAL ►RD 0,2T HARD COST* 0 2177,642 1502313 21,520,071 O 0 O 0 O 0 00 a 0 0 5061 COST, b2129021 1 Ife041...fq 1,016,610 471,124 0 0 0 0 0 0 0 0 0 P.rvts 0 0 0 9 0 0 0 0 0 a 0 Tab 6 162.2020046 6 t30r osTi 0 36,12S 0 0 0 a 0 0 0 0 0 147000 P166 213.039 0 0 0 0 0 0 0 0 0 tA011 14A13 01,113 54,613 36,101 0 0 0 0 0 0 0 1dyNt 70.0 40t00W00 0 • 0 0 0 , a 0 0 0 0 0 0 merkowq 0 07,210 67310 33.606 0 0 0 0 0 a 0 R40.4 GOY Tsab D0d242 Coast 0 412.727 100,027 0 0 0 0 0 0 0 Cmedubu 71.0ssY.0 I' Ins 0 0 0 3,340.920 0 0 0 0 0 0 to dlr)Wwyr44 a 0 0 0 0 0 0 0 0 a >7..0130.2.024 P« 0 007,619 ea Tool 0 0 0 0 0 O a 0 (yap 0 103,3315 0 0 0 0 0 0 0 0 0 R.44 Wet. Team 0910 Cam. 0 60,407 0 0 0 0 0 0 0 0 0 t4+2 Pity 0 164,024 0 0 0 0 0 0 0 0 a 140.781a1 1474.196 2,406052 1,212,542 6,402.720 0 0 0 a 0 Loa Cad C4.sspp.s7 - 74,001 90,122 42.60 138341 0 0 0 0 0 Ti1TAi. PROJECT iOPTC00T1 3,037,103 2,40 .174 1,367,031 6643,070 0 0 0 0 0 TOTAL PROJ000 COi79 Jones Lang LeSa1(e Americas, Inc. 2.063.103 42,374.637 9.407364 72,073.440 Submitted into the public record in connection with i-tem '7_ .1 i on Sisi; y City Clerk 0 0 0 0 a 7111101 .REVENUES ap.tal.0.. w9-Esau R.oewta Vwoey Morino. r . 05044 V0jivta.rnc. OraO. M.o.m. TOTAL REYE7AJE9 0 2.100,550 4.112.0021 .f (1,012,061) 0 1.005.944 11.340.124 t34 CC422000 03040141 (t,747.6Y%) R.lat Peg wet, T..q OR12o9) R.1.. Oo w Linn(ta6131) TOTµ VcP013 9 (31111 AIM NOTOAERA:TWOa ••e oatlale Coertnisolono C.Dtw 11s340.a A3ardav u6rt Fzow 7.134.6j2 0 Arts' a 0 7,400.471 0 7.e09.e72 0 7,OTU Da 4.3a7,729 2.122.701 (t,119,2s1) 1.309,044 11.030.603 0 0 t000xer 4.499.700 4274,192 (1a13,31% 1.690.014 12.120.0.04 7,0ra,ea2 •a 0 30.710 a 0 7J41.e6a 0 1.0O3.77a 002.4 to nx 4,910) 0 1.500.084 12.661.330 40;857.628 60,446.470 67,168,448 (15.0Z7.268) 065.320 23,664,612 106,Rr15 4 (11.01E:04) (13.672.1551 (2.081.472) 7,070.074 9.160.033 Locum a.06e430 400,095,464 O a o 84274,948 O 0 0 0 31,092 0 a 1.131.240 32a43 0 0,031.210 0 416.445 0 0 106,600,016 0 Sot La..4 Ow... 0 a 0 0 0 0 0 0 0 0 O e a a 0 0 a 0 0 a a a 0 0 a 0 a 0 0 0 0 0 0 O 0 ▪ B,2t1,03a O 21,003,000 • a,s/a,6te O 0 a 1,341,922 3034 35 073,363 O 0 a 30,907,07 t 0OFT COST* AM.l.4 L Eaa4••••M Pintas 1..174 a 11104055A & Burnie 57.750 L•9'r tt wra lax LooLronci s1ka Roil Gat. Tooso 0 4b.3 Conk coa.Ntl.ld L.nano row t...aM '4..ryF.. 00lit429r0401 Pao 0.,:t1NOCcmEatsamooi Coots Row G1,1a Tam w+4 a—» Low refs &Lb -Trial iaa Cod Cor55 0 4.0, TOOTAt, PROJECT SOFT oasis TOTAL PROJECT costa Jones Lang LaSefe Americas, Inc. 0 0 0 0 a 0 0 0 0 0 a 0 0 a 0 0 a 0 0 0 0 0 0 a 0 v 0 0 0 0 0 170 0 00 0 0 0 0 0 0 O 0 0 0 0 9 0 0 0 0 0 a 0 0 0 0 0 0 0 0 a 0 0 0 0 0 0 0 0 0 a a 0 0 0 0 0 D 0 0 0 0 0 0 0 a 0 0 0 a 0 0 0 0 0 0 0 2.304.17E 0 02,126 252A36 210,030 0 169,024 ars,o54 3,340.024 1.995,309 105,015 60,407 168,024 2,008,521 3e3,941 2,4112,462 Submitted into the public )ecor dtin connection with item on - I f City Clerk 0 0 0 40.370.433 7/11101 Wand OartiOna, M1tamL Florida FIagslo+ll PTOPoftA1, tLC env. not .oareeane...rom 10 ? .. �r-..,,.. Island Gardena Nava I Qialj Summary of A1lurnptJon11 yaw ne 77r Edam 1M RM.b. Couan Ia.i 171,60 Weal £GSM* IM 2'11,640 Loos Pgor 0.00% Ceratrvcdsn Colt. L.a.loq Et anon*.. corn 113.41c0111:305,Oenq A72 Pw Oee•l•omnera ra. aw Cod Cwsl 36661 Rolle) IOU IMprsnee wWork i.msOnwfore Prl194Lutvr. *Ws lisquIrr1 israe Rest A44001 WV Rare 1247.41 .. for. ► V. 63710 FInanshg Wand Mare 37.10 consewdm Lo11 2.316 70 1_14 Te4444C SAY Tad 14C 4.0% Tor.. t011 Gas.. OOPS Total lae 13.13.51 7G triad SIC art Loam To VI oa %Co 1e170% E£ JAIN coma ]Lstl.Istai Loan Rate 1.00% rear. Pros LOOP too° 10 0.00% titatulMs ass*Elm 1134.14 114111,072 61]1% I,1'. 11. 13750 36.000 476 11,47*. Pa►4g Samoan 111397.17 13. 4U31 pis% R.r d .t t.N Verses tlrrs.n Cow 70J10 0 QOQ% Me Work 730.51 73 464,639 SAM% Rattiest 864 NNW fab-Twal 1231.75 110.41A74 63,66% Pay Rota Hord tear Co•lySs•XY 37_71 77.770,767 t00% Oros Costa TQ?AI. PROJECT EVV0O COSte fx16k4 i61.D20.T:t 0177% Oates Juda.A A. 00144.54 1t1.91 me7ta14 3.04% Coalpn Dna, Ja/.O`J 1} Poona WOG 10 Oro% Lard Deal CXlat4d J.o-03 TOMB i MapodOera t It r+A7s SCUT a1w,11. 0.14% 77a/kAs bed f Combvr2lon B.OYr Jas07 12 Impel Foal M300 ST11p11 120% Censimudlen Ed/ Leasaap BOOM D.M01 t.p•l 13.10 1.544A41 0i1K ttiadaahert/L.sa.-w suri-09 J.647S 1.417.r1 PA le.trc. AO.00 10 0.00% 644 10.4 .AMA hL01, 1A441.4112 1,200 6471.373 0A4% tees. Lao C4nr+aao6a.s J.k01 RAAI tuts Trott QWq Coal N30 S7]171,937 1.10% Cott Emitting COm6a4ale.e I Lw4g Pau 10/0 1t O.DO% tend L Ad.vmry r4 ie.00 10 OD" Laub Ens r�bmCs C4r1bP&4*4 Pro 313,90 p,m6,a// 4.20% rate Ap.age t-0i2a0S T1.1 Arta l'+.44 armada . O1Ap tabs 31 poeapoRvErm.av tcoc4 1t23 trauma o.1I1t 1373n.1U *wars bat Ha. i4aikq 01 /7Afa 11 Roar Estate TWOS Op to Coot M.6o v.a3,002 0.20% Ural Vain K O... o p twl lOtlO rr. ►!. 01W 1y/04 24 tor r.0 n.o: 1a79 vn aseK so sae Work - 01103 wow 3 a�a}.7a+al s/ 7.16 10A7a,702 13.6aY Amdiad a P_..OLr..A.O OlAO 03A7 11 Harr fast Cd.ly000t 11.es a34J,011 0.s6% PsrUev 6W Wra Arse M0.010 Not N+.q. Pa.�ea 0101 01A1 t VO7AL PIM A= @OFr Lo8T1 14 LBO 610.270.730 14.27% Footp4J of P .a t:kodw/ 11.131 TeL l r.o.alaa a a,w.r MAXI o1At 1 a of Warn tteO4d to 41'4 us. 217 tnp.d row etA3 af43 1 K of to4s1 P44 -. Soaps .lo'JM.a b 01e XM 32.Zo% Ls9w OIN3 o7ra3 42 TOW PrgW Cases 6300.ba a72,1%p01 100.00% Lan: An. Aaoulsdb Parting 400*4411 20,337 6olfsh Rldt lnfarv.a. Otmw OA1311 1 µemery.* 61m03 06131 7.3 f�661:MAX61.oe6 1/10.10 113.31 L70t b0A0% Mot YesrAr..r.t .14M Penmen 1. LI 0/ 1aa P130.000.00 17»l Gets Tms PwYq COr..L oyr. i310d 14 real Y.N Faust % R..•r... il{3.710 1r Carrr.aa.l0rra. La'eri'0 reap 01Warta sra.s 1r, M.g.tms.oent PH r21oa S. 6120.74 S21.i71.600 wD0% a"s °a'a Row Eris% Tamal� te Con.l oval 0t/07 1 Logo P..e 01.133 01103 1 Molar ' Sae Wait imdv:ea s0dblan of i asaao a ...via nl or S1.744. P.moa sad Dolor. Mak 1a.vsou kbrd.d 14 Ccrs,aclrra 01: for a 1s4 B06d14 Jam Lang LiaSs1l1 America*. Inc Submitted into the public record in connection with • item e tau on 5/ /I LC City Clerk 7111101 iStand Gardena, Miami, Florida Flaps -tone Properties. LLC Jones Lang LaSalle Amerf 3, Inc. Proposed Walton bland Wave Hotel Parr ttendollve Yrar of ()pallier'. Taut Minder r of Hold UnUrt Numb., or Sanded Had Cx.auo m.: Naabo o(Teo-acdroo Tao 010arcon Berner N weber Of Award Moat Aveilahle 14er4b4r 1e4.110oo 4i.4 Ow ill Aoroe1 Oarvpaety: D.odl Anaap Drily Rote (ADki Sta 4ad god Compton Ana: T „o-&ed.00.t Teo -Bathroom S.:lu APR: 0,0.0 Rrveaue fa A.dLble Raver Ro•o..ct Food BaszxlfM/Mmirryt Trdrmmtrwcrbot Gasp tad P.M,014.0 Spa. Rredr 4r4 o0 towers Toed Reee,.. Ronne Foe! enopoadragfileoarass Tdowmwrkatfors Sp. Tout Dryrtreao& 8.y.nK1 Dcovmnr.l prom Adnn>h.rtruln & Maiteilce !main no Property Opaslo. and Mak:ou nce Matey Oat. Tool Vrdlrolbaed Oson nt tr�c9eeo !Oran ope..d.j P.,ce E9... ManaRnre>t rem Fiend Espanu Property Ta.w lrsora.0 Arend Rani (S750P00 Bt.• P. • 1 O% 01 Tea1 erne n.rl Ewlnnrna ipso To&aJ Fbad 8xpe era 11+a OW.1M11M9^M 2001 Dorian 26,111,050 223 173 M 17.113 61 590 73.0% 5330 3231 2315 320 Rub 771% 9,4% 2.1% LS% 1" 12% 100,1% Per Roo" S90J33 10,951 1162 1.369 2033 L.33 1,369 114,791. p.o,R 1J30.00 0.01 1.99 5,00 7.93 30.13 3,00 476,66 4,t71100 1,977 000 311.000 119000 1,100o0 ble% tam 70.01'. 43.174 t00% :too 1,760 1,721 611 . 6600 7920 72.00 610 2.26 2(11 1J4i.000 7),714 79.97 113,17 17,417,0(0 1,4 `x 77,409 . 71-179 1,606.000 1,013.403 610,003 30,000 531000 4,34 6,000 6.1% 39% 13% 2.1% 2,1% 161% 13,371SW e9.7% 7,131, t,502 2,711 2.502 2,461 19,316 26At 16.45 9.90 9,14 1.99 70.36 31,o93 1 212,231 Losiaeo t 4.0% 1 j671 1 17.041 900.000 7,e11, 1.000 14.61 90,000 01% 100 1.+6 1073p00 7.974 4.301 16.43 23,06e 0.154 III 0.41 2,0211,000 7.754 9,3U 3293 1)14000 1 3,99, 1 3.1461 11a31 37,6'r7,000 t 37674 t $11.549.1- 5110901 Submitted into the public record in connelctyon with I'1 �temttF.u_ one City Clerk Section VII 7/1 V01 Burns, Mark From: Sent: To: Subject: Thanks Aldo. Burns, Mark Thursday, May 23, 2013 12:53 PM Bustamante, Aldo RE: Watson Island Appraisal Mark Burns Lease Manager Dept. of Public Facilities/Asset Management Div. 444 SW 2nd Avenue, 3rd FI. Miami, FL 33130 305-416-1471 Mburns@miamigov.com From: Bustamante, Aldo Sent: Thursday, May 23, 2013 12:36 PM To: Edward Parker Cc: Burns, Mark Subject: RE: Watson Island Appraisal Ed, please see the comments to your questions below in red. Please let me know if you need any additional information. Thanks! Respectfully Submitted, ,4ecea Ecataotattre Real Estate Manager City of Miami Public Facilities/Asset Management 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 Phone: 305.416.1436 Facsimile: 305.400.5061 E-mail: abustarnante@miamigov.com From: Burns, Mark Sent: Thursday, May 23, 2013 11:53 AM To: Bustamante, Aldo Subject: FW: Watson Island Appraisal Here you go Aldo, thanks for the assistance. Mark Burns Lease Manager Dept. of Public Facilities/Asset Management Div. 1 UMITTED INTO THE LJ3L1C RECORD FOR TtMILL' ON 5c. 7 444 SW 2nd Avenue, 3rd Fl. Miami, FL 33130 30S-416-1471 Mburns@miamigov.com From: Edward Parker [mailto:ira5730@aol.coml Sent: Thursday, May 23, 2013 11:26 AM To: Burns, Mark Subject: Watson Island Appraisal Mark, I have a couple of questions. • Is the name of the proposed development at this site Island Gardens? If no, does it have a name? The name is actually Flagstone Island Gardens. • It is my understanding that the developer of this project will be a joint venture between the Flagstone Development Group and the Related Companies. Does this JV entity have a name that you know of? The JV does not exist at this time. The entities are still working on developing a name. • It is my understanding that the previously approved lease allows 221,000 square feet of retail and restaurant space. Correct? That is correct. • The two hotels now approved allow 500 rooms. Correct? Does that total include or exclude the 100 fractional residential units? Under the existing Agreement, the total number hotel units in both hotels shall not exceed 500 plus 5% in the aggregate. Therefore Flagstone has the ability to have a total of 525 hotel keys maximum. The fractionals are in addition to the hotel keys. Under the existing Agreement, the total number of fractional shall not exceed 105 in the aggregate. • Do you know how many square feet of building area is allocated to the hotels that have been approved? That number is not established in the Lease. The square footages allowed requirements imposed by zoning restrictions. • The approved parking garage will accommodate 1,600 vehicles. Correct? Do you know how many square feet of building area is allocated to the parking garage? The number of vehicles currently approved are approximately 1,600 under the existing design. The required number of parking spaces are a zoning requirement. We do not currently have a square footage count for the overall parking garage. • The additional retail/restaurant space we are addressing comprises 275,000 square feet. However, I think I recall Aldo mentioning 275,000 to 300,000 square feet. Which is it? The request is for an additional 275,000 sq. ft. with the possibility of increasing up to 300,000 square feet. Therefore if you provide in the appraisal a price per sq. ft. instead of a lump sum, any variation of the total square footage amount will be covered. • The additional hotel rooms total 105 rooms. Correct? It would be an additional 100 rooms with the same 5% variable discussed above. Therefore the possibility exist that the additional rooms could account for 105 rooms. • It is my understanding that the additional development that we are addressing will have to provide additional parking for that space. Correct? That is correct. The current design had a few extra parking spaces but not enough to cover the increase in rooms and retail square footage being proposed. 2 Submitted into the public record in connection with rtema.G. G �� City Clerk • Any word from anyone at the Planning Department that can help me with the issues we discussed for my comparable land sales? I am not sure what information you would require, but you could speak with Francisco Garcia, Director of Planning and Zoning. Thank you for your help with this. Regards, Edward N. Parker, MAI Investors Research Associates, Inc. 5730 S.W. 74 Street, Suite 100 South Miami, FL 33143 Tel: 305/665-3407 Fax: 305/665-4921 3 Submitted into the public record in conn ct'on with .atem2r _,ia on City Clerk rcr,: Appraisals- rnrerprise v auiu i-trcru vea item ragc 1 01 G From Bustamante, Aldo To Torre, Henry; Villalobos, Miguel Cc Burns, Mark Subject RE: Appraisals Henry, Date Tuesday, April 30, 2013 9:07:44 AM I believe the appraisal quote for the Glass House was given to you last week. Not sure if you approved the quote. For the Flagstone deal who is paying for this? We do not have it in the budget and I think we need to make Flagstone responsible for the payment of this work. Miguel, Flagstone is proposing the following changes to their lease: 1. An additional 300,000 square feet high end retail in addition to the existing previously approved retail; 2. An additional 100 + 5% hotel rooms for a 4 and 5-star hotels; 3. A total number of Time Share Units in both Hotels shall not exceed 105 in the aggregate. Respectfully Submitted, ,4 EG,Gan014 Real Estate Manager City of Miami Public Facilities/Asset Management 444 SW 2nd Avenue, 3rd Floor Miami, Florida 33130 Phone: 305.416.1436 Facsimile: 305.400.5061 E-mail: abustamante@miamigov.com From: Torre, Henry Sent: Tuesday, April 30, 2013 8:4,5 AM To: Villalobos, Miguel Cc: Bustamante, Aldo; Burns, Mark Subject: Appraisals Miguel, Where are the quotes for the Glass House. Aldo, please get with Aldo ASAP to put together a bid for appraisals for Flagstone. Please note that we cannot drag our feet on this. I need the quote to go out this week. Need ASAP Enrique (Henry) Torre Director City of Miami Public Facilities Division /Asset Management Division Submitted into the public record in conne ion with item?F'Ot on �, City Clerk http://vaultl /EnterpriseVaultNiewMessage.asp?Vautt1d=141 C86F6A0015044AA40BBA3... 7/10/2013 . ppraisais- t nterprise v autt Arcmvea item rage 2 or 2 444 SW 2nd Avenue, 3rd Floor Miami, FI. 33130 Phone: (305) 416-1458 Facsimile: (305) 416-2156 E-mail: htorre@miamigov.com Submitted into the public recordin connection with itemrp l on 5f qf ij City Clerk http://vault 1 /EnterpriseVault/ViewMessage.asp?Vaultld=141 C86F6A0015044AA40BBA3... 7/10/2013 ru: /Appraisals- rriierprise v auit I- ICH' VUU itcun z agc z ul z From Villalobos, Miguel To Torre, Henry Cc Bustamante, Aldo; Burns, Mark Subject RE: Appraisals Henry; Date Tuesday, April 30, 2013 9:08:17 AM On 4/24/ 2013, I prepared the bid tabulation. I provided a copy to Alina and she placed in you in box, waiting for you signature. Only one bidder provided a quote. I spoke with Aldo and he said to proceed with only one for now. As far as Flagstone, this is the first time I hear about. Aldo has not provided me information about the scope of work for this appraisal. I hope to hear from Aldo soon. I will get on preparing the bid process. Miguel A. Villalobos, ASA, AR, CGC Public Facilities Department Asset Management Division 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Phone: 305-416-1460 Email: mvlllalobos@miamigov.com Fax: 305-416-2156 From: Torre, Henry Sent: Tuesday, April 30, 2013 8:46 AM To: Villalobos, Miguel Cc: Bustarnante, Aldo; Burns, Mark Subject: Appraisals Miguel, Where are the quotes for the Glass House. Aldo, please get with Aldo ASAP to put together a bid for appraisals for Flagstone. Please note that we cannot drag our feet on this. I need the quote to go out this week. Need ASAP Enrique (Henry) Torre Director City of Miami Public Facilities Division /Asset Management Division 444 SW 2nd Avenue, 3rd Floor Miami, FI. 33130 Phone: (305) 416-1458 Facsimile: (305) 416-2156 E-mail: htorre@miamigov.com Submitted into the public record i connection with '-item/i on 5/s/+/4 City Clerk http://vaultl /EnterpriseVault/ViewMessage.asp?VaultId=141 C86F6A00 1 5044AA40BBA3... 7/10/2013 City of Miami Page 1 7/10/2013 Appraisal Assignment Job Number: FY: Property address: Folio Nos. Lot Size: Current Zoning: Type of Appraisal: Time to Complete: Exhibit "A" APPRAISAL ASSIGNMENT Category of Work: "A" A — 2013.7 2012-113 1111 Parrot Jungle Blvd AIK/A 1050 MacArthur Causeway, Miami Florida 01-3231-000-0014 See attached the existing Lease. "Civic space" under Zoning Ordinance Miami 21. Please verify the recent rezoning for this property. See City of Miami Web site http:llcitvnetJcityorg.htm. Narrative, self-contained report. The appraisal report must be completed no later than 30-45 (maximum) days after authorization. A meeting will be scheduled prior to the commencement of the appraisal report for clarification purposes, including a site visit if deemed necessary. Number of bound copies: Four, (signed and certified). City Contact Person: Resolution reference: Date of the Valuation: Fee: Rights appraised: Tenant Capital: Term of the lease: SCOPE OF WORK: Henry Torre, Aldo Bustamante None at this time Date of the appraisal. Full payment upon completion of the assignment, subject to revisions by the City of Miami and any other review appraiser should there be any discrepancies in the appraisal reports. Market Rent of the unencumbered fee simple interest. In the event that the appraiser needs to calculate the Market Value, the City would like to obtain this figure if there is no additional appraisal cost added. The lessee is to provide at his cost and expense all improvements necessary for the operation: 1). A 300,000 Sq.ft. high end retail in addition to the existing previously approved retail. 2). An additional 100+ 5% hotel rooms for a 4 and 5 star hotel. 3). A total number of Time Share Units in both Hotels shall not exceed 105 in the aggregate. Lessee is to obtain a "Special Class Two Permit" at his own cost and expense. See existing Lease. The appraisal should include: a) MARKET RENT. Minimum annual consideration. A new appraisal must be updated every five years for the remainder of the lease terms. b) Estimate the Leasehold Minimum Rent, Percentage of gross income and Break-even point under the Highest and Best Use of the subject property. c) The Market Rent should include the improvements made to the building by the lessee. d) The appraiser must identify any and all sources of possible revenues as related to this lease of similar type of business. e) See Tennant Capital, above, for changes in the existing lease. Z_\Riverside\ Public Facilities\_Share\_Asset Management Sectionl4App Assign\ App. Assign. A-2013.7 Flagstone Proposed Ieace to the existing lease. Submitted into the public record in connection with itemg ilaL on Sigi14 City Clerk City of Miami Page 2 7/10/2013 Exhibit "A" APPRAISAL ASSIGNMENT PURPOSE AND INTENDED USEOF THE APPRAISAL: Category of Work: "A" 1. Estimate the "Market RENT". Reference the above rights and valuation date. 2. Estimate the "Percentage Rental" under the Consideration in the Lease Agreement summary, see attached the Lease Agreement summary. 3. The intended use of this report is to determine the values on current and open competitive market. THE APPRAISAL REPORT SHOULD INCLUDE THE FOLLOWING: 1) The appraisal report shall be performed in compliance with the professional services agreement with the City for appraisal services as applicable. 2) The appraisal report must consider all three approaches to value and provide an explanation to the weight given to each approach in arriving at the final reconciliation of value. In the event an approach is not used, please provide justification. Please provide evidence for not using the Cost Approach. 3) In calculating the Market Data, the appraiser should analyze and provide current local market data and submit adjustment tables of comparables. 4) If utilizing a Land Sales Comparable Table to calculate Sales Price per Square Foot, please provide line item adjustments in a matrix format for a better understanding of the Summary and Land Value Correlation conclusion. 5) Provide source and proof of capitalization rate for the income approach to value in local market versus other market when applicable. 6) Provide Market Data as if taxable property. 7) The appraisal report should be in compliance with the current Uniform Standard of Professional Appraisal Practice (USPAP) according to Section 475, Part II, of the Florida Statutes. The City of Miami reserves the right to review the appraisal report and submit its comments. The final report will be due five days after the appraisal is reviewed by City's staff. Note: All calculation must be explicit. Show all steps used to arrive for any calculation. Alt data in this sheet must be verified by the appraiser, if any discrepancy, please call this office at 305 416-1460 Z \R.iverside\ Public Facilities\_Share\_Asset Management Section\lApp Assign\ App. Assign. A-2013.7 Flagstone Proposed lease to the existing lease. Submitted into the public record in connection with item "Lon 5jg114 City Clerk April 30, 2013 REQUEST FOR APPRAISAL QUOTE You are invited to submit a quote to prepare an appraisal report for the property located at approximately 888 MacArthur Causeway, Miami, Florida. The appraisal shall be performed in accordance with Exhibit "A" attached hereto. Please complete the information requested at the bottom of this page. This information must be received the Department of Public Facilities no later than 4:00 PM, May 14, 2013. You may fax your proposal to my attention at (305) 416-2156, or mail or personally deliver your proposal to: Henry Torre, Director Department of Public Facilities City of Miami 444 SW 2 Avenues, 3rd Floor Miami, FL 33130 If you have any questions, please contact, Aldo Bustamante at 416-1436. Property Address: 888 MacArthur Causeway Folio number: 01-3231-061-0010 Comprehensive total fee to perform appraisal: Hourly fee in the event expert testimony is required: Time to complete: Comments: Firm Authorized by Date Invitation Flagstone State appraisal Z_\Riverside\Public Facilitiest_Share\Asset Management SectionlApp Assign. A-214.7 Flagstone Proposed lease to the existing lease. Submitted into the public record in connection with item .gjl on V L( City Clerk EXHIBIT A This Exhibit A is an attachment to City Commission Resolution No. 10- , adopted , 2010, contains material business terms, and becomes Composite Attachment 3 to the Amended and Restated Agreement to Enter Into Ground Lease (hereinafter, the "Agreement to Enter") and to the form of Amended and Restated Ground Lease(s) (hereinafter the "Ground Lease(s)"). All terms used herein but not defined herein shall have the definitions given to them in the Agreement to Enter or in the form of Ground Lease(s). I. GENERAL CONSTRUCTION SCHEDULE FOR ALL MAJOR PROJECT COMPONENTS. Flagstone/Ground Lessee shall have the time periods set forth below to commence and complete construction of the various Major Project Components; as such Major Project Components are approved in accordance with the Major Use Special Permit and as such are defined in Section of the form of Ground Lease(s). Throughout this Exhibit A, (a) "Commence(s) Construction" or "Start(s) Construction" shall mean that all material plans and permits are approved and issued and the actual act of physical construction has begun; and (b) "Completion Date" shall mean the date upon which the earlier of the temporary certificate of occupancy ("TCO") or a certificate .of occupancy ("CO"), has been issued for the completion of. construction. Until 9/1/2013 36 months from 9/1/2010 to Start Construction of the Marina Component. (a) As described in Section VI(c) below, Marina Component construction may be started earlier and separately from the Parking/Retail Components once applicable conditions precedent for Marina Component have been met. Until2/28/2015 54 months from 9/1/2010 to the Completion Date of the Marina Component. (a) If Marina Component Starts Construction earlier than 9/1/2013, then Flagstone shall have 18 months from such earlier start date to the Completion Date of the Marina Component. Until 9/1/2016 72 months from 9/1/2010 to Start Construction of both the Retail/Parking Components Until 8/31/2019 108 months from 9/1/2010 to the Completion. Date of Retail/Parking Components. 1 Submitted into the public record' connection with Re. C itemfzg.0 on 5fv/,Lj City Clerk (a) Parking spaces for Hotels may be completed separately with construction of Hotels Components. (b) Flagstone agrees to design, construct and provide utility lines needed for each of the Major Project Components on a component by component. basis as necessary and as approved by the City and as required by the Master Declaration as a condition precedent to executing the first Ground Lease. Flagstone shall design, construct and provide utility lines needed for both Hotel Components in connection with the construction of utility lines for the Parldng/Retail Components. Until 9/1/2018 96 months from 9/1/2010 to Start Construction of both Hotels Components, if the two (2) 5-year Options to extend described below are not exercised, therefore until 8/31/2020 (being twenty-four (24) months) to the Completion Date. Flagstone cannot exercise the second Option if no hotel construction has commenced by 8/31/2023_ Until 9/1/2023 156 months from 9/1/2010 to Start Construction of a Hotel Component, if only the first 5-year Option to extend is exercised.. Accordingly, the first Option period ends on 8/31/2023. (a) During the first Option period, a Hotel Component must be completed within twenty-four (24) months after Construction Commencement, therefore until 8/31/2025 to the Completion Date of at least one Hotel Component. Accordingly, both the Rent(s) payments schedule and the Option payments schedule in this Exhibit A would apply throughout the entire period of construction, even if the Completion Date of such constriction period runs beyond the Option period. The first 5-year Option period runs from 9/01/2018 through 8/31/2023. The first Option period payment is $250,000 per annum ($125,000 per Hotel Component per annum) with monthly payments beginning 9/01/2018 for the first Option period ending 8/331/2023. All Option payments are to be paid monthly in advance beginning on the first day of the month. The first Option is exercised by Flagstone's giving not less than thirty (30) days advance written notice prior to 8/31/2018 to the City for the first Option period to begin. Until9/1/2028 216 months from 9/1/2010 to Start Construction of the second Hotel Component if Flagstone exercises the second 5-year Option to extend; accordingly, the second Option period ends on 8/31/2028: (a) The second 5-year Option period runs from 9/01/2023 through 8/31/2028. The second 5-year Option period payment is $315,000 per annum ($157,500 per Hotel Component per annum) with monthly payments beginning 9/01/2023 for the second Option period ending 8/31/2028, but second 5-year Option is not available 2 Submitted into the public record in connection with itemg.`i on 5/8f 1`1 City Clerk (b) (c) unless the first Hotel Component Starts Construction before the end of the first 5-year Option period on 8/31/2023. All Option payments are to be paid monthly in advance beginning on the first day of the month. The second Option is exercised by Flagstone's giving not less than thirty (30) days advance written notice prior to 8/31/2023 to the City for the second Option period to begin. During the second Option period, the second Hotel Component must be completed within twenty-four (24) months after Flagstone Commences Construction, therefore until 8/31/2030 to reach the Completion Date of the second Hotel Component that commenced construction during the second Option period. Accordingly, both the Rent(s) payments schedule and the Section N Option payments schedule in this Exhibit A would apply throughout the entire period of construction, even if such construction period runs beyond the Option period. II. GENERAL RENT(S) PAYMENT SCHEDULE FOR ALL MAJOR PROJECT COMPONENTS. During the periods outlined below, Flagstone/Ground Lessee shall pay to the City the amounts outlined below. 1;,...p ti�:: _5� .�g.-� ,,;..?„ a.ii ivo"ia uiye=�is -q-! re.. cp_.. -cv•�✓tr*`r'f �MnY� �.1. i; , c'?y- ,,.'.1-,�-amR r•_,, .!.rJ;,.:txms,,z. :P.45+ .. _i-3 .Y:u F 2/1%2010 through 0/30/2010 ' $200,000 Consideration for Extension Period. This amount shall not be applied as a credit. 10/1/2010 $300,000 $300,000 is a Pre -Payment of Construction Rent/Base Rent to City • 10/1/2011 • $500,004 $500,000 is a Pre -payment of Construction RentBase Rent to City 10/1/2012 $750,000 $750,000 is a Pre -payment of Construction Rent/Base Rent to City 10/1/2013 $1,000,000 $1,000,000 Construction Rent, subject to 11(g) below 10/1/2014 $1,000,000 $1,000,000 Construction Rent, subject to 11(g) below 10/1/2015 $1,000,000 $ 1,000,000 Construction Rent, subject to 11(g) below 10/1/2016 . $1,140,000* $1,500,000 Construction Rent is the amount actually received by City since $360,000 was pre- paid for this year per above schedule and Section 11 (g) below, unless there is no credit pursuant to Section VI(a) below. 3 Submitted into the public record in connection with tern ri on 5/S/N City Clerk Beginning Annual: • Amount: -°< . 10/1/2017 $1,315,000* $1,675,000 Construction Rent is the amount actually received by City since $360,000 was pre- paid pursuant to the above schedule and Sections II (g) below, unless there is no credit pursuant to Section VI(a) below. 10/1/2018 and annually thereafter $1,640,000* $2,000,000 Base Rent is the amount actually received by City since $360,000 was -pre -paid pursuant to the above schedule and Section II(g) below, nniess there is no credit pursuant to Section VI(a) below. Base Rent continues until termination of Ground Lease(s). Additionally, Percentage Rent payments begin as described in (d) below. 10/1/2019 $1,640,000* $2,000,000 Base Rent is the amount actually received by City since $360,000 was pre -paid pursuant to the above schedule and Section 11(g) . below, unless there is no credit pursuant to Section VI(a) below. Additionally, Percentage Rent payments continue as described in (d) below. 10/1/2020 $1,890,000* $2,000,000 Base Rent is the amount actually received by City since $110,000 was pre -paid pursuant to the above schedule and Section II(g) below, unless there is.no credit pursuant to Section VI(a) below. Additionally, Percentage Rent payments continue as described in (d) below until the termination of Ground Lease(s). *Notwithstanding the Annual Amounts set forth above and pursuant to Section II(g) below, credits of the Pre -Payment of Construction/Base Rent cannot be given until the Marina Component Starts Construction prior to 9/1/2013 and both of the Parking/Retail Components Start Construction prior to 9/1/2016 pursuant to the above General Construction Schedule for All Major Project Components. As stated in Section II(g) below, when all (i) of the Marina Component Starts Construction prior to 9/1/2013 and (ii) the Retail/Parking Components Start Construction prior to 9/1/2016, then credit of the Pre -Paid Construction/Base Rent begins the month following the date upon which all of those three (3) specific Components have started construction. (a) Once payment of Base Rent begins from Flagstone to the City, the City is obligated six (6) months thereafter under the State Waiver (as defined in Section VII below) to pay an annual fee to the State of Florida. 4 Submitted into the public record in connection with fzs fo item Qum on Sly�{ City Clerk (b) During the thirty-six (36) months after '9/01/2010 to 8/31/2013, Flagstone has a 10-day grace period beyond the first of each month to make each "Pre -Paid Construction Rent" payment, and agrees to not require any notice from the City in the event of non-payment of any `Pre -Paid Construction Rent" payment. In the event that Flagstone defaults for non-payment, Flagstone also agrees to waive its defenses as to non-payment against the City, immediately vacate and turn over to the City for the City's possession all of Flagstone's rights, and interests in, the Property and the easementareas, remove from such easement areas and from the Property all of its property of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as - necessary related to the Property, and (ii) deliver to the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements which are in Flagstone's possession or in Flagstone's control. (c) All payments to the City (for various Rents and for Option payments) are to be paid monthly in advance beginning on the first day of the month, except for the lump sum payment Flagstone shall pay to the City upon the date of City Commission Approval of the Agreement to Enter and the Ground Lease, for the Consideration of Extension Period amount from February 1, 2010 through September 30, 2010. (d) Additionally, if the Agreement to Enter is not signed in the same month of City Commission Approval, then Flagstone shall also pay a lump sum payment amount of $25,000 per month for each month from October 1, 2010 until the Agreement to Enter is executed. (e) (f) Additional provisions regarding Percentage Rent payments are included. in the form of each Amended and Restated Ground Lease(s). As stated therein, Percentage Rent on the Gross Revenues of each.CQmponent begins on the third anniversary after each Major Project Component is Open for Business. "Open for Business" means the earlier of the date that the applicable Major Project Component receives either its TCO or CO. Base Rent may begin sooner than 02/01/2018 (i.e., if both Hotels are Open for Business prior to that time, as set forth in the Amended and Restated Hotel Ground Lease). As stated in the applicable Amended and Restated Ground Leases, once Base Rent begins, it continues each year for the remaining terra of the applicable Ground Lease(s). On the first anniversary of the commencement of the Base Rent for each Major Project Component, the Base Rent thereafter becomes subject to an annual Consumer Price Index ("CPI") adjustment as set forth in the Ground Lease(s). Percentage Rent on the Gross Revenues of each Major Project Component begins on the third anniversary after each Major Project Component is Open for Business. . Submitted into the public recordin connection with 'item s u on . / if City Clerk (g) (h) If the Marina Component Starts Construction prior. to 9/1/2013 and the Retail/Parking Component(s) both Start Construction prior to 9/1/2016, then on the first day of the month following the date when the Marina Component and the Retail/Parking Component(s) (all 3 such Components) have started construction, the Construction Rent payment (subject to credits described in (g) below) becomes at least $1,000,000 per year, as opposed to the lesser Prepaid Construction/Base Rent payment amounts shown on the above Section II General Rents Payment Schedule for All Major Project Components. If the Marina Component Starts Construction prior to 9/1/2013 and the Retail/Parking Component(s) (all 3 such Components) Start Construction by 9/1/2016, then as shown on the above Section II General Rent(s) Payment Schedule for All Major Project Components, Flagstone is entitled to a credit back of Pre -Paid Construction Rent/Base Rent each year beginning in the month following the date upon which construction has started on all 3 such Components in the amount of $30,000 per month for fifly-one (51) months and of $20,000 for the 52" d month until Flagstone has received a total. aggregate credit of $1,550,000. This monthly credit is a return of Pre -Paid Construction/Base Rent paid by Flagstone between 9/1/2010 and 8/31/2013. If Flagstone. Starts Construction of all three (3) of the Marina Component and the Retail/Parking Components prior to 9/1/2013, then the total credit back amount is reduced by 1/36th for each month prior to 2/1/2013 that all such Components have commenced. Conversely, if Flagstone does not Commence Construction of all three (3) of the Marina Component and the Retail/Parking Components by 8/31/2016, then no credit of Prepaid Construction Rent is allowed and the City keeps all of the Prepaid Construction Rent amount received. (i) If no construction begins by 9/1/2013 on any Major Project Component, then the City keeps all Prepaid Construction/Base Rent, Flagstone, agrees to not require any notice from the City to terminate for failure to begin construction, and Flagstone also agrees to waive its defenses against the City, immediately vacate and turn over to the City for the City's possession all of Flagstone's rights and interests in the Property and the easement areas, remove from such easement areas and from the Property all of its property of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the Property, and (ii) deliver to the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements which are in Flagstone's possession or in Flagstone's control. III. OPTION PAYMENT SCHEDULE (FIRST OPTION). Flagstone has two (2) 5-year Options ("Option(s)") to extend the date to Commence Construction of the Hotels Components, and Flagstone has the choice to build either one Hotel 6 Submitted into the public record io connection with • Itemiia iu on 518/N City Clerk Component or two Hotel Components; that choice triggers Option payments for one Hotel Component or two Hotels Components accordingly. If FIagstone exercises the first Hotel Option period for only one Hotel Component, Flagstone must also pay to the City the following additional Option payment amounts. ni -,-Qne'ote Aniia1;`O ton= p-.;�,Po_4141,1a aY)r_ _ }=, - a: - ,_ : ', • Zteti w:.:' ,<. �1L.,„:on i'sgng - -hgG: ,�' ...-- .., i.v.:am :.:.' ."L.,. 9/1/2018 $125,000 $2,000,000 $2,125,000 (Base Rent plus Option payment) 9/1/2019 $125,000 $2,000,000 $2,125,000 (Base Rent plus Option payment) 9/1/2020 $125,000 $2,000,000 $2,125,000 (Base Rent plus Option payment) 9/1/2021 $125,000 $2,000,000 $2,125,000 (Base Rent plus Option payment) 9/1/2022 $125,000 $2,000,000 $2,125,000 (Base Rent plus Option payment) If Flagstone exercises the first Hotel Option period for two (2) Hotel(s) Components, Flagstone must also pay to the City the following additional Option payment amounts. �;.r: ,:: " - Q ad ,1.< LB,ege'nrng„�� u::P. FY'r; %: - ��? ,, .. ', .t.s ,“:„. ^aX3L� d1. L'tmv �e ik... .yy�ry �'3,9��4+v aynenf fobs w �;�U•,t' t .e' <a.'?t 1i�> *i c,.: ,it,F4 s3$L 6a A"tV`''•"e4,. - ., Y-"7- '-.-�o!;f�'+'id NY -•q, may... _.- �i..'4�, h :. = ..il1/4 P.., c' v.",'�.' k a �at$ "'r „ti,-�w;IF, � 3, ^M7 'i..x i., AG-:' . 'Fir .ram.. lu 9/1/2018 $250,000 $2,000,000 $2,2.50,000 (Base Rent plus Option payments) 9/1/2019 $250,000 $2,000,000 $2,250,000 (Base Rent phis Option payments) 9/1/2020 $250,000 $2,000,000 $2,250,000 (Base Rent plus Option payments) 9/1/2021 $250,000 $2,000,000 $2,250,000 (Base Rent plus Option payments) 9/1/2022 $250,000 • $2,000,000 $2,250,000 (Base Rent plus Option payments) (a) As indicated in Section II(a) above, once payment of Base Rent begins from Flagstone to the City, the City is obligated six (6) months thereafter under the State Waiver (as defined in Section VII below) to pay an annual fee to the State of Florida. 7 Submitted into the public record in connection with itemptli on5�g�)c�_ �� City Clerk (b) (c) Flagstone can exercise the Option for only one Hotel Component or for. both Hotel Components, or stop Option payments at any time by giving written notice to the City at least thirty (30) days before the date that the next Option payment is due, but if Flagstone elects not to exercise the Option for one or both Hotel Conponent(s), or fails to make any Option payment(s), then Flagstone must turn over to the City immediately any applicable Hotel Ground Lease(s), Flagstone also agrees to waive its defenses as to failure to pay the required Option payments, immediately vacate and turn over to the City for the City's possession all of Flagstone's rights and interests in the Hotel Component(s), any Hotel Ground Lease, and the applicable easement areas, remove from such easement areas all of its property of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the applicable Hotel Component(s), and (ii) deliver to • the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements relating to the applicable Hotel Component(s) which are in Flagstone's possession or in Flagstone's control, and City has the rights to seek a new developer for the applicable Hotel. Component(s). For Any Hotel(s) Component(s) that Start(s) Construction during the first Option period and continue construction into the second Option period, the Option payments shall increase on 9/01/2023 to the second Option period Option payment amount(s) set forth below in Section 1V, and shall continue at such second Option payment amount(s) until the Completion Date. Such Option payments- for the Hotel(s) Component(s) are in addition to the required Construction Rent, Base Rent, Percentage Rent, CPI Adjustments, Marina Rent, and any other Rents for the Hotels and any other Major Project Components. IV. OPTION PAYMENTS SCHEDULE (SECOND OPTION). If Flagstone exercises its second Hotel Option period for one Hotel Component only, Flagstone must pay to the City the following additional amounts: •_ ip, egInn .. :<y. :7r' tub_ l On- a e.,,_� a f� pi •`al ?O1Eb �"` .:Jqa'y6�f-,:0� � . ��rr 31~b:13.a:MK 4i h f . oasKnua'• B �1.:DG'.."�mayx;�1 "•- � +:v wt- �- %" fc,-. ):4. tr 'T:Y`AV, rn`' c' OuIr' x £met �`. .pn�k��C'� 'b 1,--t i-av, . >"r�`L(" i3f::::,.r..h�.s�:.y:w.�.w:. .,aa_ 9/1/2023 $157,500 • $2,000,000 $ 2,157,500 9/1/2024 $157,500 $2,000,000 $ 2,157,500 9/1/2025 $157,500 $2,000,000 $ 2,157,500 9/1/2026 $157,500 $2,000,000 $ 2,157 500 9/1/2027 $157,500 $2,000,000 $ 2,157,500 Submitted into the public record in connection with ite i`I on 5fg/1'--1 City Clerk If Flagstone exercises its second Hotel Option period for two Hotel Components, Flagstone must pay to the City the following additional amounts: Be isg Payinents r- Hoiei) . -Airialase Ann:al_, iounf . ... oTe^Ci2 9/1/2023 $315,000 $2,000,000 $ 2,315,000 9/1/2024 - $315,000 L $2,000,000 $ 2,315,000 9/1/2025 $315,000 $2,000,000 $ 2,315,000 9/1/2026 $315,000 $2,000,000 $ 2,315.000 9/1/2027 $315,000 $2,000,000 $ 2,315,000 (a) (b) As indicated in Section II(a) above, once payment of Base Rent begins from Flagstone to the City, the City is obligated six (6) months thereafter under the State Waiver (as defined in Section VII below) to pay an annual fee to the State of Florida. Because Flagstone has twenty-four (24) months to complete construction of any Hotel(s) Component, Flagstone shall continue to make Option payments to the City beyond 8/31/2028 until such time that the final Hotel(s) Component(s) construction has reached the final Completion Date. Flagstone can stop Option payments at any time by giving written notice to the City at least thirty (30) days before the date that the next Option payment is due, but if Flagstone elects not to or fails to make any Option payment(s), then Flagstone must turn over to the City immediately the Hotel Ground Lease(s) for the ,Hotel which is not to be constructed, Flagstone also agrees to waive its defenses as to failure to pay the required Option payments, immediately vacate and turn over to the City for the City's possession all of Flagstone's rights and interests in the Hotel Component(s), any Hotel Ground Lease, and the applicable easement areas, remove from such easement areas all of its property of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the applicable Hotel, and (ii) deliver to the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements relating to the applicable Hotel Component(s) which are in Flagstone's possession or in Flagstone's control, and City has the rights to seek a new developer for the applicable Hotel Component(s). (c) If Flagstone does not Start Construction of the second Hotel Component by 9/1/2028, then both the City and Flagstone have their separate rights to terminate the Agreement to Enter and Flagstone must immediately vacate and turn over to the City for the City's possession all of Flagstone's rights and interests in the Property related to the second Hotel Component and the easement areas, remove from such easement areas and from the Property related to the second Hotel 9 Submitted into the public record in connection with kt.10 item r. i on5/s/N City Clerk (b) Component all of its property of Whatever kind as requested in writing by the City Manager, and (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the applicable Hotel, and (ii) deliver to the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements relating to the applicable Hotel Component(s) which are in Flagstone's possession or in Flagstone's control, and City has the rights to seek a new developer for the applicable Hotel Component(s). (d) Flagstone has a 10-day grace period beyond the first of each month to make each Option payment, and agrees to not require any notice from the City in the event of non-payment of any Option payment. In the event that Flagstone defaults for non - .payment, Flagstone also agrees to waive its defenses as to non-payment against the City, immediately vacate and turn over to the City for the City's possession all , of Flagstone's rights and interests in the Second Hotel Component and the easement areas, remove from such easement areas and from the Second Hotel Component all of its property of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the Second Hotel Component, and (ii) deliver to the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements which are in Flagstone's possession or in Flagstone's control. V. ADDITIONAL AGREEMENTS CONCERNING ROTEL COMPONENTS. (a) No Hotel Component can Start Construction until both the Marina Component and the Parking/Retail Components Start Construction. Once a Hotel Componentreaches its Completion Date, the Option payments for that Hotel Component stop. For the portion of any construction period that extends into the Option period, all applicable Option payment(s) (and all ongoing Construction Rent payments) shall continue until the Completion Date. (Pursuant to the applicable Ground Lease(s), the "Percentage Rent Payment Beginning Anniversary Date" starts running for any Hotel on the date when it is Open for Business and Percentage Rent payments begin on the third anniversary of the Percentage Rent Payment Beginning Anniversary Date in order to give that Hotel a Stabilization Period). (c) The second Option period cannot be exercised unless one Hotel Component has started construction before the end of the first Option period. If one Hotel Component does not Start Construction before the end of the first Option period, then the Option period .terminates and no second Option exists. If the second Hotel Starts Construction before the end of the first Option period and continues construction into the second Option period, then the Option payments applicable 10 Submitted into the public record in connection with item(6,11 on _1ji4 City Clerk to the second Option period shall be due upon commencement of the second Option period until the second Hotel Component reaches its Completion Date. (d) Upon entering into the Ground Lease for any Hotel Component(s) and prior to Starting Construction for any such Hotel Component(s), Flagstone shall provide a Construction Bond to the City for the full amount of the construction cost of any such Hotel Component(s). VI. ADDMONAL AGREEMENTS CONCERNING FLAGSTONE FORFEITURE / CITY TERMINATION RIGHTS. (a) If the Marina Component does not Start Construction by 9/01/2013 or both the Parking/Retail Components do not Start Construction by 9/01/2016, then Flagstone's rights to build any Components expires and ceases, the Agreement to Enter is terminated, City retains all Prepaid Construction/Base Rent (as consideration for the extension of time until 9/1/2013 for the Marina Component and as consideration for the extension of time until 9/1/2016 for both the Parking/Retail Components) and Flagstone must tam over to the City immediately the applicable Ground Lease(s), Flagstone also agrees to waive its defenses as to failure to begin construction against the City, immediately vacate and turn over to the City for the City's possession all of Flagstone's rights and interests in the Property and the easement areas, remove from such easement areas and from the Property all of its property' of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the Property, and (ii) deliver to the City all .of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements which are in Flagstone's possession or in Flagstone's control. (b) If any. Hotel Component does not Start Construction according to the applicable deadline under the construction schedule and the Option schedule(s) (as applicable), then Flagstone's rights to build the applicable Hotel Component expires (but Flagstone's obligations under the payment schedule for the Marina Component, the Parking/Retail Component, and any Hotel Component that is/are complying continues to the end of the applicable Ground Lease(s)). Any time Flagstone loses the right to construct a Hotel(s) Component, then Flagstone must turn over to the City immediately the applicable Ground Lease(s), Flagstone also agrees to waive its defenses as to failure to begin construction against the City, immediately vacate and turn over to the City for the City's possession all of Flagstone's rights and interests in the applicable Hotel Component, any Hotel Ground Lease, and the related easement areas, remove from such easement areas and from the Property all of its property of whatever kind as requested in writing by the City Manager, and immediately (i) return or sign over, as applicable, to the City all of Flagstone's rights, directly or indirectly, in the permits, plans, 11 Submitted into the public record d connection with 'item g6. t1 on.81i(1 City Clerk specifications, and all related governmental approvals, documents, instruments, and agreements as necessary related to the applicable Hotel Component, and (ii) deliver to the City all of such permits, plans, specifications, and all related governmental approvals, documents, instruments, and agreements which are in Flagstone's possession or. in Flagstone's control. (c) Subject to Section VII(a), Flagstone may separately ground lease and separately construct the Marina Component prior to 9/1/2013 if the conditions precedent for the Marina Component are met (d) If construction is continuing during the Option period(s), then Flagstone shall pay both, Construction Rent or Base Rent in accordance with the General Rent Schedule in Section II above, and the applicable Option payments related to its choice to construct either one or two Hotel Components. VII. CROSS DEFAULTS; SEPARATE DEFAULTS. (a) During the period prior to the earlier of 96 months from 9/01/2010 (being 8/31/2018) or the date upon which the first Hotel is Open for Business, Ground Leases for the separate Major Project Components shall be cross -defaulted for any Base Rent payment defaults, Prepaid Construction/Base Rent payment defaults, and any Construction Rent payment defaults. After the earlier of 96 months from 9/01/2010 (being 8/31/2018) or the date upon which the first Hotel is Open for Business, (i) the Base Rent, Percentage Rent, . and all other payments to the City each year thereafter shall be apportioned to each separate Major Project Component Ground Lease for direct payments to the City by each separate Ground Lease lessee in an amount reflecting each separate Major Project Component's respective percentage share of the total Project Development Costs to that point in time, and (ii) the Ground Leases for the separate Major Project Components shall not be cross -defaulted for any defaults, including but not limited to any defaults in payments of Base Rent, Prepaid Construction Rent/Base tent, Construction Rent, Percentage Rent, or any other Rent, with each separate lessee being solely responsible for any payment default(s) to the City. (c) Notwithstanding anything to the contrary in this Exhibit A, if the Retail/Parking Components do not Commence Construction by the 72"d month from 9/01/2010 (being 8/31/2016), then (i) there will be no crediting of Prepaid Construction/Base Rent, the City shall keep all Prepaid Construction/Base Rent received, (ii) the City can terminate the Agreement to Enter, all Ground Lease(s), and (iii) the City can take back the Marina Component, the Retail/Parking Components, any Hotel Components and the balance of the Project and the Property., (b) VIII. STATE WAIVER. Upon approval of this Exhibit A by City Commission Resolution, the City will have forty-five (45) days to perform due diligence on the State Partial Waiver of Deed Restriction (the .12 Submitted into the public record in connection with ;a. Iteme ,ri on 5Js(1l City Clerk "State Waiver"). If the State conditions approval in any manner unacceptable to the City, and the City advises Flagstone that it intends to terminate due to such unacceptable conditions, then the City must send notice of such State action to Flagstone within such forty-five (45) days. Upon receipt of such notice, Flagstone will have thirty (30) days to resolve the dispute satisfactorily. If the dispute concerning such unacceptable conditions is not resolved, then the City, may cancel the current Agreement to Enter Into Ground Lease without executing a new Amended and Restated Agreement to Enter Into Ground Lease. The parties intend to execute the Agreement to Enter at such time as the State Waiver is executed and delivered and recorded. IX. INDEMNIFICATION/HOLD HARMLESS FOR CITY; DISCHARGE OF EXISTING LIENS, JUDGMENTS, AND GARNISHMENTS. The City Commission in connection with Resolution No. 10-0144 of March 25, 2010 directed, and Flagstone agreed (a) that Flagstone will enter into a Hold Harmless, Indemnification, and Security Agreement (the "Hold Harmless, Indemnification, and Security Agreement") within thirty (30) days of the City's determination in Section X below to proceed under the new State Waiver, protecting the City against any and all lawsuits and related costs, (b) that Flagstone shall assist the City in defending against any and all lawsuits involving liens, judgments, garnishments and any other matters against Flagstone related to the Property and the easement areas, (c) to the extent any lawsuit is pending against the City relating to any lien(s) on the subject Property, that Flagstone shall provide to the City not less than $200,000 ,in security in such form(s) as satisfactory to the City Manager at such time as the parties enter into the Hold Harmless, Indemnification and Security Agreement, and (d) Flagstone shall provide to the City Manager audited financial statements as soon as the same are completed, and any other information needed in connection with the Hold Harmless, Indemnification and, Security Agreement. Additionally, Flagstone shall have up to one hundred and twenty (120) days from the date of City Commission approval of the .Amended and Restated Agreement to Enter Into Ground Lease (the "City Commission Approval Date") to clear and discharge as many liens, garnishments, and judgments as possible, prior to making a deposit with the Miami -Dade County Clerk of Courts Registry for all remaining outstanding liens, garnishments, and judgments at the end of that one hundred and twenty (120) day period. Upon the one hundred and twenty first (121s) day after the City Commission Approval Date, Flagstone shall deliver to the Miami -Dade County Clerk. of Courts Registry to be held .in an escrow account, an amount not less than the total remaining. outstanding balance of all liens, garnishments, and judgments not previously discharged during the one hundred and twenty (120) day period from the City Commission Approval Date (and update such deposit amount as and if necessary from time to time and at the time of execution of the Amended and Restated Agreement to Enter into Ground Lease, (and update such deposit amount as and if necessary at time of execution of the Amended and Restated Ground Lease). If Flagstone does not provide the foregoing, then the City shall terminate the existing Agreement to Enter with Flagstone, terminate all easements with Flagstone, and the City shall not enter into the contemplated new Amended and Restated Agreement to Enter Into Ground Lease and the Amended and Restated Ground Lease, as applicable at such time. 13 Submitted into the public record 18 connection with itemltF.ii on 518'19 . City Clerk X. SECURITY DEPOSITS. The Amended and Restated Agreement to Enter Into Ground Lease and the form of Ground Lease(s) provide for security deposits in connection with the easement areas, the Pre -paid Construction Rent/Base Rent, and the Ground Lease(s). (a) Security for the Easements. Prior to the execution and delivery of the new Amended and Restated Agreement to Enter by City to Flagstone, Flagstone shall either (a) deliver the amount of Thirty -Five Thousand and No/100 Dollars ($35,000.00) (the "Easement Deposit") to Escrow Agent or (b) provide to City, at Flagstone's sole cost and expense, a Letter of Credit in the amount of Thirty -Five Thousand and No/I00 ($35,000.00) (the "Easement Security LOC"). Notwithstanding the foregoing, Flagstone shall be permitted to utilize any combination of cash or Letter of Credit so long as the easement deposit equals Thirty -Five Thousand and No/100 Dollars ($35,000.00) in the aggregate. The Easement Deposit or the Easement Security LOC, as applicable, shall hereinafter be referred to as the "Easement Security" and shall provide security for the faithful performance by Flagstone of all of the provisions of the Easements to be performed or observed by Flagstone. (b) . Security Deposit for the Construction Rent/Base Rent: Prior to execution of the new and Amended and Restated Agreement to Enter, FIagstone shall either (a) deliver the amount equal to one year's Construction Rent/Base Rent to the Escrow Agent, or (b) provide to City, at Flagstone's sole cost and expense, a Letter of Credit in the amount equal to one year's Construction Rent/Base Rent as defined herein. Notwithstanding the foregoing, Flagstone shall be permitted to utilize any combination of cash or Letter of Credit so long as the Security Deposit for the Pre -Paid Construction Rent/Base Rent equals the amounts defined in the aggregate. The Security Deposit for the Construction Rent/Base Rent, shall herein after be referred to as the "Security Rent Deposit" and shall provide security for the faithful performance by Flagstone of all rent payment provisions of this Agreement to be performed or observed by Flagstone. During the periods outlined below, Flagstone shall deliver the Security Rent Deposits as defined below: Commencing Annual Amount Required for Rent Security Deposit October 1, 2010 $300,000 Octoberl, 2011 $500,000 October 1, 2012 $750,000 October 1, 2013 $1,000,000 October 1, 2014 $1,000,000 Octoberl, 2015 $1,000,000 14 Submitted into the public record in connection with item on 51g fri City Clerk October 1, 2016 $1,500,000 October 1, 2017 $1,675,000 Octoberl, 2018 $2,000,000 Any LOC Deposit held by the Lessor or Cash Deposit held by Escrow Agent, as defined in the Agreement to Enter between the Parties (having an effective date of February 1, 2010) as security under such Agreement to Enter into Ground Lease to begin being deposited as of October 1, 2010 may be credited toward the following year's Security Rent Deposit. The annual amount due on September 1, 2018 of $2,000,000 shall remain in effect for the life of the Agreement to Enter and of the Ground Lease(s), in accordance with the schedule listed in this section and in Section 5.2 of the Agreement to Enter. If an Event of Lessee's Default for non- payment of rent occurs hereunder, Lessor may, at its option and without prejudice to any other right .or remedy that Lessor may have hereunder, apply or require distribution of all or any portion of the Security Rent Deposit for the payment of any sum to which Lessor may become entitled by reason of such Event of Lessee's Default, including, without limitation, reasonable attorneys' fees and costs which Lessor may incur in connection therewith. If Lessor so applies or requires the distribution to Lessor of all or any portion of the Security Rent Deposit, Lessee shall, within thirty (30) days after written demand therefor, deposit cash with Lessor in an amount .sufficient to restore any such deficiency or amend or replace any LOC Deposit, whichever is applicable, to the full amount thereof, and Lessee's failure to . do so shall, at Lessor's option, constitute an Event of Lessee's Default hereunder. In the event Lessor applies or requires distribution of all or -any portion of an LOC Deposit where no Event of Lessee's Default then existed, Lessor shall be deemed to have improperly requested and received such application or distribution, and Lessee shall be entitled to recover from Lessor the amount which was improperly requested and received, or to reduce the Rent Security Deposit by an equivalent amount. XI. LABOR PEACE AGREEMENTS. The parties acknowledge that the City Commission by Resolution No. 10-0144, adopted on March 25, 2010, has directed that the Project is subject to the provisions of earlier City Commission Resolution No. 09-0263, adopted May 28, 2009, regarding the establishment of labor peace agreements prior to and during the operation of hospitality operations on the Property. XII. COVENANT OF GOOD FAITH AND FAIR DEALING. All matters in this Exhibit A contain a covenant of good faith and fair dealing by Flagstone and the City in reasonably complying with their respective obligations. {Remainder of this page intentionally left blank} 15 Submitted into the public record in connection with Ru G item I II on 5/8(0-1 City Clerk Burns, Mark From: Sent: To: Cc: Subject: Attachments: Villalobos, Miguel Thursday, May 02, 2013 11:51 AM 'sjmiami@aoLcom'; Lee@waronkerandrosen.com; 'JMQMAI @ AOL.COM'; drandccim@aol.com; 'deikyvergel@gmail.com'; EdParker Torre, Henry; Bustamante, Aldo; Bums, Mark FW: Flagstone Proposed lease to the existing Lease MX-M453N_20130501_120622.pdf; Invitation A-2013.7 Flagstone Propose lease to the existing lease.docx; Exhibit A.PDF Importance: High 5/2/2013 Dear appraisers: Attached please find Exhibit A. Ragerds, Miguel A. Villalobos, ASA, AR, CGC Public Facilities Department Asset Management Division 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Phone: 305-416-1460 Email: mvillalobos@miamigov.com Fax: 305-416-2156 From: Villalobos, Miguel Sent: Wednesday, May 01, 2013 2:13 PM To: 'sjmiami@aol.com'; Leeftwaronkerandrosen.com; EdParker; 'JMQMAI@AOL.COM'; drandccim(aaol.com; 'd ei kyve rge l@ gmai I. com' Cc: Torre, Henry; Bustamante, Aldo; Burns, Mark Subject: Flagstone Proposed lease to the existing Lease Importance: High 5/1/13 Dear appraisers: Please submit your proposal and let me know whenever you receive this e-mail. Please remember to provide us with all insurance documentation upon your proposal submission. Best regards Miguel A. Villalobos, ASA, AR, CGC Public Facilities Department Asset Management Division 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Submitted into the public record i connection with item C + on _ 51/9 City Clerk Phone: 305-416-1460 Email: mvillalobos@miamigov.com Fax: 305-416-2156 2 Submitted into the public record in connection with item on 54111i City Clerk City of Miami Page 1 5/1/2013 Exhibit "A" APPRAISAL ASSIGNMENT Category of Work: Appraisal Assignment Job Number: A2013.7 FY: 2012-113 Property address: Folio Nos. Lot Size: Current Zoning: Type of Appraisal: Time to Complete: 888 MacArthur Causeway, Miami Florida 01- 3231-061-0010 See attached the existing Lease. T6-36A-O"Urban Core Zone" under Zoning Ordinance Miami 21. Please verify the recent rezoning for this property. See City of Miami Web site http://maps.mlamIgls.com/m lam izoningsite/ Narrative, self-contained report. Appraiser MUST be State Certified. The appraisal report must be completed no later than 10 business days (maximum) days after .authorization. Number of bound copies: Four, (signed and certified). City Contact Person: Resolution reference: Date of the Valuation: Fee: Riuhts appraised: Tenant Capital: Term of the lease: SCOPE OF WORK: Henry Torre, Aldo Bustamante None at this time Date of the appraisal. Full payment upon completion of the assignment, subject to revisions by the Clty of Miami and any other review appraiser should there be any discrepancies in the appraisal reports. Fee will be paid directly by a third party. Market Rent of the unencumbered fee simple interest. The lessee Is to provide at his cost and expense all improvements necessary (Land Lease) for the operation: 1). A 300,000 Sq.ft. high end retail in addition to the existing previously approved retail. 2). An additional 100+/- 5% of hotel rooms for a 4 and 5 star hotel. -3). A total number of Time Share Units In both Hotels shall not exceed 105 In the aggregate. Lessee Is to obtain a "Special Class Two Permit" at his own cost and expense. See existing Lease. The appraisal should Include: a) MARKET RENT. Minimum annual consideration. b) Estimate the Leasehold Minimum Rent, Percentage of gross Income and Break-even point. c) The Market Rent should consider the improvements made to the building by the lessee. d) The appraiser must Identify any and all sources of possible revenues as related to this lease of similar type of business. e) See Tennant Capital, above, for changes In the existing lease. Z_\Riverside\ Pablio Facilities\_Share\_Asset Management Section4App Assign\ App. Assign. A-2013.7 Flagstone Proposed lease to the existing lease. Submitted into the public recogl Th connection with item(ZElt on 5/Sit City Clerk City of Miami Page 2 5/1/2013 Exhibit "A" APPRAISAL ASSIGNMENT Category of Work: PURPOSE AND INTENDED USEOF THE APPRAISAL: 1. Estimate the "Market RENT". Reference the above rights and valuation date. 2. Estimate the "Percentage Rental" under the Consideration In the Lease Agreement summary, see attached the Lease Agreement summary. 3. The Intended use of this report is to determine the values on current and open competitive market. THE APPRAISAL REPORT SHOULD INCLUDE THE FOLLOWING: 1) The appraisal report shall be performed In compliance with the professional services agreement with the Clty for appraisal services as applicable. 2) The appraisal report must consider all three approaches to value and provide an explanation to the weight given to each approach In arriving at the final reconciliation of value. In the event an approach is not used, please provide Justification. Please provide evidence for not using the Cost Approach. 3) In calculating the Market Data, the appraiser should analyze and provide current local market data and submit adjustment tables of comparables. 4) if utilizing a Land Sales Comparable Table to calculate Sales Price per Square Foot, please provide line Item adjustments In a matrix format for a better understanding of the Summary and Land Value Correlation conclusion. 5) Provide source and proof of capitalization rate for the Income approach to value in local market versus other market when applicable. 6) Provide Market Data as if taxable property. 7) The appraisal report should be in compliance with the current Uniform Standard of Professional Appraisal Practice (USPAP) according to Section 475, Part II, of the Florida Statutes. The Clty of Miami reserves the right to review the appraisal report and submit Its comments. The final report will be due five days after the appraisal is reviewed by City's staff. Note: All calculation must be explicit. Show all steps used to arrive for any calculation. All data in this sheet must be verified by the appraiser, If any discrepancy, please call this office at 305 416-1460 Z \Riverside\ Public Facilities\ Share\ Asset Management Seotion\App Assign\ App. Assign. A-2013.7 Flagstone Proposed Iease to the existing lease. Submitted into the public record in connection with iterr ¢Ei°, on 51$J19 City Clerk Burns, Mark From: Villalobos, Miguel Sent: Friday, May 03, 2013 12:07 PM To: 'sjmiami@aol.com'; Lee@waronkerandrosen.com; 'JMQMAI@AOL.COM'; drandccim@aol.com; 'deikyvergel@gmail.com'; EdParker; 'fallen@Blakemiami.com' Cc: Torre, Henry; Bustamante, Aldo; Burns, Mark Subject: RE: Flagstone Proposed lease to the existing Lease Attachments: MX-M453N_20130501_120622.pdf; Invitation A-2013.7 Flagstone Propose lease to the existing Iease.docx; Exhibit A.PDF; AppAssign A-2013.7 Flagstone.doc Importance: High 5/3/13 Dear appraiser: A minor modification has been in the appraisal assignment, See AppAssign above. Please submit your proposal and let me know whenever you receive this e-mail. Please remember to provide us with all insurance documentation upon your proposal submission. Best regards, Miguel A. Villalobos, ASA, AR, CGC Public Facilities Department Asset Management Division 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Phone: 305-416-1460 Email: mvillalobos@miamigov.com Fax: 305-416-2156 From: Villalobos, Miguel Sent: Thursday, May 02, 2013 11:51 AM To: 'sjmiami@aol.com'; Lee@waronkerandrosen.com; 'JMQMAI@AOL.COM'; drandccim@aol.com; 'deikyvergel@gmall.com'; EdParker Cc: Torre, Henry; Bustamante, Aldo; Burns, Mark Subject: FW: Flagstone Proposed lease to the existing Lease Importance: High 5/2/2013 Dear appraisers: Attached please find Exhibit A. Ragerds, Miguel A. Villalobos, ASA, AR, CGC Public Facilities Department Asset Management Division 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 1 Submitted into the public recordtii connection with ,item gi.i, onS/8// y City Clerk Phone: 305-416-1460 Email: mvillalobos@miamigov.com Fax: 305-416-2156 From: Vlllalobos, Miguel Sent: Wednesday, May 01, 2013 2:13 PM To: 'sjmiami@aol.corn'; LeePwaronkerandrosen.com; EdParker; 'JMQMAI@AOL.COM'; drandccim@ aol.com; 'deikyvergel@gmai l.com' Cc: Torre, Henry; Bustamante, Aldo; Burns, Mark Subject: Flagstone Proposed lease to the existing Lease Importance: High 5/1/13 Dear appraisers: Please submit your proposal and let me know whenever you receive this e-mail. Please remember to provide us with all insurance documentation upon your proposal submission. Best regards Miguel A. Villalobos, ASA, AR, CGC Public Facilities Department Asset Management Division 444 SW 2 Avenue, 3rd Floor Miami, Florida 33130 Phone: 305-416-1460 Email: mvillalobos@miamigov.com Fax: 305-416-2156 2 Submitted into the public record in connection with item "° on ,5/iy City Clerk i PLAT / ZONING MAP 1,(filt �o � B 1 S L.P Y M t CIS � H D a l�^ Y ME•,TI/K_T •� .. „••r. ..M �'f 'AIM TINN II�>• �6 A, / / Iue TMGt l nw ♦ rI 1 • A 1 '1 SAN M A RCO LEGEND MIAMI CRY LIMn RAILROADS CIW* EL RAVIOAT1DN L/GllTS -� 4j \ "+1'` N \� e ,00: r re; OF GRAPHIC', IULI ,M /[II i 0 Nn WARONKER & ROSEN, INC. 44 REAL ESTATE APPRAISERS AND CONSULTANTS 7 Submitted into the public record in connection with c item li on 5/6II City Clerk • ;p:r -.:j. ;. - View looking southeasterly from bridge at the subject property View looking southeasterly from bridge at the subject property WARONKER & ROSEN, INC, # REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with bnSiiS/ILJ City Clerk View looking southerly along the western property line. The Port of Miami is in the background. View looking southeasterly over the subject property WARONKER & ROSEN, INC. w' REAL ESTATE APPRAISERS AND CONSULTANTS 9 Submitted into the public record in connection with item fr.� on ,5_111/Li City Clerk View looking southerly along the western property line. The Port of Miami is in the background. • • • View looking southeasterly over the subject property WARONKER & ROSEN, INC. o'' REAL ESTATE APPRAISERS AND CONSULTANTS 10 Submitted into the public record V connection with item p4ii on `?,fib//g City Clerk View looking easterly at the subject property View looking northwesterly at the northwestern end of the subject property WARONKER & ROSEN, INC. 00 REAL ESTATE APPRAISERS AND CONSULTANTS 11 Submitted into the public recorrdiin connection with j tear f.II on 48//y City Clerk View looking southeasterly along MacArthur Causeway ,:. '« Z.:.+.w »fi.; nunuauF r.4""^ : k-aV�c�n y,w•.,' •... _ _ _. View looking northwesterly at the subject property WARONKER & ROSEN, INC. ti6 REAL ESTATE APPRAISERS AND CONSULTANTS 12 Submitted into the public record iio connection with itemei�,r on 51 Mry City Clerk View looking easterly along the southern property line View looking westerly along the southern property Iine WARONKER & ROSEN, INC. # REAL. ESTATE APPRAISERS AND CONSULTANTS 13 Subrnitted into the public reco d in connection with -iten on ,r5/131Itt City Clerk View looking northeast at the subject property .irrw+ Y :F s n ..—•... K..74[.xtC.11. View looking northwest at the subject property WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 14 Submitted into the public record in connection with •item&e on 51451 Ik City Clerk Q UALIFICA TIONS OF THE APPRAISER LEE H. WARONKER, MAI, SRA Education: Master of Science in Management, School of Business and Organizational Science, Florida International University, 198I (Major - Real Estate). Bachelor of Science Degree, The Florida State University, Tallahassee, Florida, 1976 (Major - Real Estate). Affiliations: MAI Designation (No. 6738) awarded by the Appraisal Institute in 1983. President of the Miami Chapter of the Appraisal Institute, 1990 to 1991. State Certified General Appraiser, State of Florida, License Number 0000162, May 1990. Experience: Appraised various types of properties including: Industrial Buildings Restaurants Warehouses. Office Buildings Hotels and Motels Hospitals Service Stations Retail Stores Marinas Churches & Synagogues U.S. Post Offices Historical Buildings President, Waronker & Rosen, Inc. (formerly Waronker & Associates, Inc.), Miami, Florida from 1987 to present. Vice -President, PropertyConsultants, Inc. from 1979 to 1986. Appraiser, The Keyes Company, 1978 to 1979.. Appraiser, Dade County Department of Right -of -Way, 1977 to 1978. Instructor: Appraisal Institute. Taught courses IA-1, 1A-2, 8-2, 113-A, 1B-B, 110, 120, 210, 310, 320, 410, 420, 430, 510, 550, 600, 610 and 620. Courses: Appraisal Institute. Courses IA, 1A-1, 1B, 1B-A, 1I, VI, Uniform Standards of Professional Appraisal Practice, 510, 530, 550, 600, 610, 110, 120 and 210. Other: Special Master for the Dade County Valuation Adjustment Board, 1989 to 1996. Author: Seminars entitled "DynamicsofOfficeBuilding Valuation ", "Why the Capitalization Rate is Always 10" and the "Appraisal of Real Estate 1O'h vs. 11 th Edition". WARONKER & ROSEN, INC. << REAL ESTATE APPRAISERS AND CONSULTANTS 15 Submitted into the public record in connection with ;temgr.II on F,IKII�{ City Clerk QUALIFICATIONS OF THE APPRAISER JOSH L. ROSEN, MAI Education: The University of Florida, Gainesville, Florida. School of Business Administration. Major in Real Estate and Urban Analysis. Awarded degree of Bachelor of Business Administration, May 1983. Affiliations: MAI Designation (No. 11800) awarded by the Appraisal Institute. Stateeertified General Appraiser, State of Florida, License Number 0000395, May 1990. Experience: Appraised various types of properties, including: Office Buildings Hotels and Motels Office Condominium Warehouses Amusement Park Service Stations Shopping Centers Golf Courses Marinas Apartment Buildings Industrial Buildings Special Purpose Facilities Restaurants Vacant Land Churches and Synagogues Vice President/Principal, Waronker & Rosen, Inc. (formerly Waronker & Associates, Inc.), Miami, Florida, from 1987 to present. Executive Committee Member, RoneyPalace Condominium and Hotel Complex, a 1,100 unit mixed -use complex, Miami Beach, Florida, from 2001 to present. Appraiser, Property Consultants, Inc., Miami, Florida, from 1983 to 1987. Course. Work: Appraisal Institute: Course 1 A-1 Real Estate Appraisal Principles. Course 1A-2 Basic Valuation Procedures. Course 1 B-A Capitalization Theory and Techniques, Part A. Course 1B-B Capitalization Theory and Techniques, Part B. Course 2-1 Case Studies in Real Estate Valuation. Course 2-2 Report Writing and Valuation Analysis. Courses 410, 420 and 430 Standards ofProfessional Practice, Parts A, B & C Litigation Valuation Appraising Non -Conforming Uses Partial Interest Valuation - Undivided Society of Real Estate Appraisers; Courses 101, 102, 201 and 202. WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS 16 Submitted into the public record in connection with vLiu item ail_ on5( '/ 1 City Clerk PARTIAL CLIENT LIST Lenders Admiralty Bank AMRESCO Capital, L.P. BAC Bank BankUnited Bank of America Bear Steams Commercial Mortgage, Inc. Chase Manhattan Bank Cigna Investments, Inc. Citibank and Citicorp City National Bank of Florida Colonial Bank CommerceHank, N.A. Commercial Bank of Florida Credit Suisse First Boston Mortgage Capital, LLC Espirito Santo Bank of Florida Executive National Bank First Union National Bank Fleet Bank GMAC Commercial Mortgage Corporation Gulf Coast National Bank Holliday Fenoglio Fowler, L.P. Legg Mason Real Estate Services, Inc. Lehman Brothers Holdings, Inc. Lloyds International Bank (Lloyds of London) Lutheran Brotherhood Mellon United National Bank Morgan Stanley Mortgage Capital Northern Trust Bank Ocean Bank Orix Real Estate Capital Markets, LLC PanAmerican Bank Republic Bank SouthTrust Bank, N.A. SunTrust Thomas Wood and Company Union Planters 'Bank Wachovia Life Insurance Companies Allstate Insurance Company American General Life Insurance Company Fortis Capital Corp. and Life Insurance Company Franklin Life Insurance Company General American Lifc Insurance Company Independent Order of Foresters John Alden Life Insurance Company Kansas City Life Insurance Company Life of Georgia Lumberman's Life Insurance Company Omaha Woodmen Life Insurance Society Standard Life Insurance Company Sun Life Insurance Company of America Woodmen of the World Life Insurance Company Developers and Investors Berkowitz Development Group Codina Group Constructs Development Gator Investments, Inc. Goldman Properties Napoiitano Realty and Hamap Corporation Noble House Resorts and Hotels Ocean Properties, Ltd. Panther Real Estate R.K. Associates, Inc. The Scott Robins Companies Trammell Crow Company United Trust Fund Wometco Enterprises, Inc. Corporations Church of Jesus Christ of the Latter -Day Saints Florida Power & Light Corporation (FPL) IC Penney Corporation Wendy's International Corporation Chevron U.S.A., Inc. PBS & Government Agencies Broward County School Board City of Coral Gables City of Miami Beach City of Miami General Services Administration Dade County - Aviation Authority Dade County - County Attorney's Office Dade County - General Services Administration Dade County - Housing & Urban Development (HUD) Dade County - Public Works Department Dade County - School Board Federal Deposit Insurances Corp. (FDIC) -Federal Home Loan Mortgage Corp. (FHLMC) Florida Department of Environmental Protection Florida Department of Transportation Florida Keys Aqueduct Authority Miami -Dade Water and Sewer Authority Nature Conservancy, Florida Chapter South Florida Water Management District United States Department of Justice United States General Services Administration United States Postal Service Village of Pinecrest Law Firms Barranco, Kircher, Vogelsang & Boldt, P.A. Berman, Wolfe, Rcnnert, Vogel and Mandler, P,A. Greenberg Traurig, P.A. Gunter Yoakley Valdes-Fauli & Stewart, P.A. Holland and Knight Kirkpatrick & Lockhart Stearns, Weaver, Miller, Weissler, Alhadeffand Sitterson, P.A. Steel Hector and Davis WARONKER & ROSEN, INC. S'‘ REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with Item Rt: lt_ on 51'4J1-1 City Clerk 17 NOTABLE PROPERTIES APPRAISED Miami -Dade County Miami Seaquarium Miami International Airport City of Miami Correctional Facility Country Club of Miami Golf Course Mel Reese Golf Course Doctors Hospital • Beacon Centre Development Gables Waterway Executive Center Joe's Stone Crab. Restaurant Dora} Ocean Beach Resort (formerly) Metro -Dade Bus Facility Miami Free Zone —Global Trade Center Pan American Hospital Spinnaker Marina Virginia Key and Rickenbacker Marinas Waterways Yacht Basin Porto Vita Club and Spa Ocean Steps Entertainment Center Indian Creek Country Club BIV Tower Courthouse Tower Virginia Key Miami Miami Miami Miami Coral Gables Miami Coral Gables Miami Beach Miami Beach Miami Miami Miami North Miami Key Biscayne Miami Aventura South Miami Beach Indian Creek Miami Miami Fort Lauderdale/Broward County Florida Medical Center (Hospital) Jackson Marine Center Las Olas Centre Office Building Martha's Restaurant Various Luxury Single Family Homes Ft. Lauderdale Ft. Lauderdale Ft. Lauderdale Hollywood Fort Lauderdale Monroe County/Florida Keys Hawk's Cay Resort, Marina and DRI Hilton Resort and Sunset.Key Island Little Palm Island Louis' Backyard Restaurant Sloppy Joe's Bar Truman Annex - Navy Base Duck Key Key West Little Torch Key Key West Key West Key West Other Florida Counties La Playa Beach Resort Sheraton Four Points Spring Hill Suites Naples, Collier County Orlando, Orange County Tampa, Hillsborough County Outside of the United States Various Single Family Hornes Single Family Home Sapphire Beach Resort Hotel Site Cat Cay, Bahamas Casa de Campo, Dominican Republic St. Thomas, U.S. Virgin Islands Grand Turks and Caicos Island WARONKER & ROSEN, INC. 40 REAL ESTATE APPRAISERS AND CONSULTANTS 18 Submitted into the public record in connection with •�tem �4v a on 5I�51 City Clerk CP Printed on Recycled Paper Submitted into the public record ii connection with item c.\t on cijJly City Clerk DESCRIPTION, ANALYSES AND CONCLUSIONS real estate appraisers and consultants osen IN R PORATE 0 Island Gardens at Watson Island, 1050 MacArthur Causewa Miami Florida PURPOSE OF THE APPRAISAL REPORT The purpose of this appraisal report is to estimate the "AS IS" Market Value and the Market Rent of the Fee Simple Interest of the subject property as of February 1, 2002. The term Fee Simple Interest is defined below. The terms Market Rent and Market Value are defined on following pages. CLIENT, INTENDED USER AND USE OF THE SELF-CONTAINED REPORT The intended user of this appraisal is Ms. Laura Billberry, Director, Office of Asset Management, City of Miami, Florida (client). The intended use of this appraisal is for estimating the Market Value and the Market Rent in conjunction with Resolution No. 00-032 and RFQ No. 99-00-271 and with reference to Island Garden at Watson Island, R.F.P. DEFINITION OF INTEREST BEING APPRAISED The interest appraised herein is that ofthe unencumbered Fee Simple Interest, described as follows: Fee Simple Interest: an absolute fee without limitations to any particular class of heirs, but subject to the limitations of eminent domain, escheat, police power and taxation. An inheritable estate. WARONKER & ROSEN, INC, 4 REAL ESTATE APPRAISERS AND CONSULTANTS 19 Submitted into the public record in connection with .itemaa_ic) a•11 on5iti i City Clerk SELF-CONTAINED APPRAISAL REPORT C'bMPLETE APPRAISAL Prepared for Ms. Laura Billberry, Director Office of Asset Management City of Miami, Florida Island Gardens at Watson Island R.F.P. Proposed Mixed Use Development 1050 MacArthur Causeway Watson Island Miami, Florida Resolution #00-032 and RFQ #99-00-271 DATE OF VALUATION February 1, 2002 DATE OF REPORT March 1, 2002 Prepared by WARONKER & ROSEN, INC. 5730 S.W. 74" STREET, SUITE 200 SOUTH MIAMI, FLORIDA 33143 LEE H. WARONKER, MAI, SRA JOSH L. ROSEN, MAI File # 4649 Submitted into the public record Rio connection with item g1. j on 5I_S i�1 City Clerk Waronker & Rosen, Inc. Real Estate Appraisers and Consultants 5730 S.W. 74th Street, Suite 200 South Miami, Florida 33143 Telephone 305) 665-8890 Lee H. Waronker, MA1, SRA Fax (305) 665-5188 Josh L. Rosen? MAI President www.waronkerandrosen.com Vice President iee@waronkerancrosen.com josh@waronkerandrosen.com March 1, 2002 Ms. Laura Billberry, Director Office of Asset Management City of Miami, Florida 444 S.W. 2"d Avenue Miami, Florida 33130 Re: Island Gardens at Watson Island R.F.P. Proposed Mixed Use Development 1050 MacArthur Causeway Watson Island Miami, Florida Resolution #00-032 and RFQ #99-00-271 WRI File No. 4649 Dear Ms. Billberry: We have prepared a Self -Contained Appraisal Report, further described as a Complete Appraisal of the above referenced property for the purpose of estimating the "AS IS" Market Value of the Fee Simple Interest and the Market Rent of the Vacant Land as of February 1, 2002. The terms Market Value, Market Rent and Fee Simple Interest are defined in the pages of this Self - Contained Appraisal Report. A Complete Appraisal is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) as an appraisal which does not invoke the Departure Rule, The subject property being appraised is vacant land. Per the appraisal assignment solicitation, the subject property consists of 10.8 acres of upland and approximately 13.4 acres of bay bottom. The valuation herein estimates the land value and the land rent based upon the projected uses outlined within the Island Gardens of Watson Island R.F.P., as prepared by Flagstone Properties, LLC. Within the appraisal is a detailed discussion of the proposed uses. The feasibility of these uses is not considered herein. WARONKER & ROSEN, INC. O REAL ESTATEAPPRAISERS AND CONSULTANTS Submitted into the public record in connection with iterniataLonTh City Clerk Ms. Laura Billberry, Director Office of Asset Management City of Miami March 1, 2002 Page Two Zoning on this site is C-1(Restricted Commercial) and PR (Parks and Recreation) Districts, by the city of Miami, Florida. This appraisal values the subject property based upon the Flagstone proposal. The actual zoning has not been considered within this appraisal as the assignment is to value the subject site based solely on the Flagstone proposal. Should there be any change in the density or allowable uses within the proposal, there would be a change in the values estimated herein. In order to complete this appraisal we were supplied with the following items. o Books One to Four prepared by Flagstone Properties, LLC, with a Letter of Transmittal dated July 13, 2001. These books outline the proposal which is referred to as Island Gardens at Watson Island R.F.P. Report to the City ofMiami on the Proposals forDevelopment of Watson Island, prepared by PriceWaterhouseCoopers, dated August 30, 2001. Any change in the size of the site or the proposed uses would cause a change in the values estimated herein. To the best of our ability, the analysis, opinions, and conclusions were developed and this report was prepared in accordance with the standards and reporting requirements of FIRREA of 1989 - Title XI and its updates, the Office of the Comptroller of the Currency of the United States of America (OCC), the Federal Deposit Insurance Corporation (1,DIC) and the Uniform Standards of Professional Appraisal Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation (except that the Departure Rule of the USPAP shall not apply). The reader should be advised that our employment was not contingent on the appraisal providing a minimum valuation, a specific calculation or the approval of a loan. Additionally, we have complied with the USPAP Competency Rule. We hereby certify that we have no present or contemplated future interest in the subject property. We have investigated all of the factors affecting the Market Value and all information used was true and correct to the best of our knowledge. This report was prepared in accordance with the codes of ethics and appraisal principles of the professional societies of which we are members. WARONKER & ROSEN, INC. • REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with itemL•kklion si`aI19 City Clerk Ms. Laura Billberry, Director Office of Asset Management City of Miami March 1, 2002 Submitted into the public record in connection with itemp�i_on S(c{l+i rr City Clerk Page Three As a result of our investigation, it isour opinion that the "AS IS" Market Value of the Fee Simple Interest of the subject property as of February 1, 2002, is in the amount of TWENTY NINE MILLION FOUR HUNDRED THIRTY THOUSAND DOLLARS ($29,430,000) The above includes a value of $28,000,000 for the upland area and $1,430,000 for the 13.4 acres of submerged land. Additionally, the estimated Market Rent of the subject property, as of February 1, 2002 is in the amount of $2,060,000 PER YEAR OR $1,472,000 PLUS 2% OF GROSS REVENUES, WHICHEVER IS GREATER. The above rent would commence after completion of construction, or within three years from lease commencement, whichever is sooner. Base rent would be subject to compounded Consumer Price Index (CPI) increases every five years. The estimated market rent of $2,060,000 considers compounded increases every five years. If increases were on an annual basis, a rent of $1,950,000 per year would indicate the same present value (based on an B% discount rate over 46 years). On the following pages are the Discussion of the Appraisal Problem, the Certificate of Value and the General and Special Assumptions and Limiting Conditions. It is advised that these conditions of the appraisal are reviewed so the reader has an understanding of the ]imitations of this appraisal. After these pages is the Table of Contents which begins on Page One. In addition to estimating the above values, the three developer proposals were evaluated individually and compared to one another. Very truly,yours, (4)" H. Waronker, MAI, SRA State Certified General Re: 'state Appraiser Certificate No. RZOO Josh L. Ro . - • A► :. State Certifiev ."•rt Estate Appraiser Certificate No 'Y 00003 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public recordyn connection with item on City Clerk DISCUSSION OF THE APPRAISAL PROBLEM The subject property being appraised consists of approximately 10.8 acres of upland and 13.4 acres of bay bottom located at 1050 MacArthur Causeway, Watson Island, Miami, Florida. This site is zoned C-1 (Restricted Commercial) and PR (Parks and Recreation) Districts, by the city of Miami, Florida. The owner of the site (City of Miami) solicited proposals from developers for development of this property. Three proposals were received and the Flagstone Properties proposal was chosen. This appraisal only considers the density levels and allowable uses of the Flagstone Properties proposal and, therefore, the actual zoning has not been considered. Prices paid for real estate are typically dictated by their density levels and allowable uses. Therefore, it could be expected that dependent upon the individual developers density projections, in conjunction with those uses that will be allowed, the price offered could vary dramatically. The land value and land rent estimated herein assumes that the proposal density levels will be allowed. Any change in the allowable density levels would effect the values estimated herein. This appraisal first estimates the Fee Simple Interest Market Value of the subject property as vacant Iand with the assumption that the Flagstone Proposal dictates the only allowable use and density. Next, an estimated market rental rate (percent return) was estimated. This return rate was applied to the estimated land value to obtain an estimated market rent. To this market rent estimate was added the estimated market rent for the 13.4 acres of submerged land. Lastly, the estimated market rent herein was compared to the rent the developer has proposed. WARONKER 14 ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record it connection with itemeg.ii on 51b/1 City Clerk CERTIFICATE OF VALUE The undersigned does hereby certify that, to the best ofmy knowledge and belief that: 1. To the best ofmy knowledge and belief, the statements of fact contained in this appraisal report, upon which the analysis, opinions and conclusions expressed herein are based, are true and correct. 2. The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this appraisal report and I have no personal interest or bias with respect to the parties involved. 4. My compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. This appraisal assignment was not based upon a requested minimum value, a specific value, or the approval of a loan. 5. To the best ofmy knowledge and belief, the reports and analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the requirements of • the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute • the State of Florida requirements for state -certified appraisers • FIRREA of 1989 — Title XI and its updates • Office of the Comptroller of the Currency of the United States of America • Federal Deposit Insurance Corporation (FDIC) • Uniform Standards,of Professional Appraisal Practice (USPAP) 6. I have complied with the USPAP Competency Rule and the USPAP Departure Rule does not apply in this report. 7. This appraisal report sets forth all of the limiting conditions imposed by the terms of this assignment or by the undersigned affecting the analyses, opinions and conclusions contained in this report. 8. No one provided significant professional assistance to the persons signing this report, unless specifically noted herein. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Additionally, it is subject to review by the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 1 Submitted into the public record in connection with Q�Io itemet., on 5f isf !q City Clerk Certificate of Value (Continued) 10. As of the date of this report, Lee H. Waronker has completed the requirements of the continuing education program of the Appraisal Institute. 11. As of the date of this report, Josh L. Rosen has completed the requirements of the continuing education program of the Appraisal Institute. 12. I, Lee•H. Waronker, personally inspected the subject property. 13. I, Josh L. Rosen, personally inspected the subject property. 14. The estimated "AS IS" Market Value of the Fee Simple Interest of the subject property, as of February 1, 2002, is in the amount of $29,430,000. This estimate allocates $28,000,000 to the 10.8 acre upland area and $1,430,000 to the 13.4-acre bay bottom area. 15. The estimated Market Rent of the subject property, as ofFebruary 1, 2002, is in the amount of $2,060,000per year, or $1,472,000 per year plus 2% of gross revenues, whichever is greater. Base rents would be subject to compounded Consumer Price Index (CPI) increases every five years. 16. Zoning on this site is C-1 (Restricted Commercial) and PR (Parks and Recreation) Districts, by the city of Miami, Florida. This appraisal values the subject property based. upon the Flagstone proposal. The actual zoning has not been considered within this appraisal as the assignment is to value the subject site based solely on the Flagstone proposal. Should there be any change in the density or allowable uses within the proposal, there would be a change in the values estimated herein, . Waronker, MAI, SRA State Certified General Real Estate Appraiser Certificate No. RZ0000162 osh State Real Estate Appraiser Certi o. RZ0000 DATE: March 1, 2002 WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS { 1 i Submitted into the public record in connection with rz4 1.0 ,temv LL on 518111 City Clerk GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 1. This property has been appraised as though free and clear of liens and encumbrances, except as noted. 2. Both the legal description and dimensions are taken from sources deemed to be authoritative; however, no responsibility is assumed for either unless an up-to-date survey has been furnished. 3. Responsible and competent property management and ownership are assumed. 4. Neither all nor any part of this appraisal report shall be disseminated to the general public using the appraiser's name or appraisal designations, without prior written consent of the appraisers signing this appraisal report. 5. Authorization is not allowed for the out -of -context quoting from, or partial reprinting of, this appraisal report. 6. No responsibility is to be assumed for matters legal in nature nor is any opinion of the title rendered herewith. Good title is assumed. 7. By reason of the report, there is no requirement to testify with reference to the property herein appraised, unless arrangements have been previously made. 8. It is assumed that there are no hidden or unapparent conditions of the property that render it more or less valuable. No responsibility is assumed for such conditions or for arranging engineering studies that may be required to discover them. 9. It is assumed that there is 'full compliance with all applicable federal, state, and local • environmental regulations applicable zoning regulations and laws unless otherwise stated in the appraisal report. 10. The existence of hazardous material, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in .the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field. WARONKER & ROSEN, INC. REAL ESTATE APPRAISERS AND CONSULTANTS Submitted into the public record in connection with 'temRE. L on 51%/ 4 City Clerk General Assumptions and Limiting Conditions (continued) 11. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority frbm any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based. 12. The reader should be advised that our employment was not contingent on the appraisal providing a minimum valuation, a specific calculation or the approval of a loan. Additionally, we have complied with the USPAP Competency Rule. SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS 1. No building plans were provided. It is assumed that construction quality will be commensurate with the rental rates estimated. 2. The sizes provided by the developer are assumed to be net rentable areas, unless otherwise specifically stated, and are the basis for the estimates and calculations herein. 3. Where the developer's proposal differs from one section to the next, the Schedule of Financial Return to the City and the Combined Portfolio (Sect. VII) were considered the authoritative sources. 4. The lease to the city of Miami will not be subordinate. 5. Developers will pay real estate taxes or a similar Leasehold Tax on the land and building. 6. Gross Revenues are considered to be Effective Gross Income in real estate appraisal terminology. Effective Gross Income is the actual dollars projected to be collected. Further, it is described as Gross Income less a vacancy and a collection loss. WARONKER & ROSEN, INC. 48 REAL ESTATE APPRAISERS AND CONSULTANTS 0 Printed on Recycled Paper Submitted into the public record in connection with itemue,i on r,/g11Li City Clerk INTRODUCTION real estate ppraisers and consullanls asen. I N R P O R A T E lD Submitted into the public record in connection with fzE 'temggi1 on 5Aily City Clerk Island Gardens at Watson: Island, 1050 MacArthur Causeway, Miami, Florida TABLE OF CONTENTS Title Page Letter of Transmittal Discussion of the Appraisal Problem v Certification of Value vi General Assumptions and Limiting Conditions viii Special Assumptions and Limiting Conditions ix INTRODUCTION Table of Contents 1 Summary of Pertinent Data 3 Miami -Dade County Map 4 Site Plan 5 Aerial Photograph 6 Plat / Zoning Map 7 Photographs of Subject Property 8 Qualifications of the Appraisers 15 Partial Client List 17 Notable Properties Appraised 18 DESCRIPTION, ANALYSES, AND CONCLUSIONS Purpose of the Appraisal Report • 19 Client, Intended Use and User of the Appraisal Report 19 Definition of Interest Being Appraised 19 Definition of Market Rent 20 Definition of Market Value 21 Scope of Work 22 Location and Address 23 Legal Description 23 Owner of Record 23 History of the Subject Property 23 Zoning 24 Flood Zone 24 Census Tract 24 Site Data 25 City of Miami Concurrency 25 Real Estate Assessment and Taxes 25 WARONKER & ROSEN, INC. O REAL ESTATE APPRAISERS AND CONSULTANTS I' Submitted into the public recoal,c, connection with item Q .ti on 5/g/IL) City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Table of Contents (continued) Neighborhood Description Supply and Demand Reasonable Exposure Time Typical Purchaser of the Subject Property Highest and Best Use Appraisal Process Cost Approach Income Capitalization Approach Sales Comparison Approach Valuation of Marina Component Developer Proposals Conclusion of Development Proposals and Market Rent ADDENDA Addendum A Addendum B — — County Area Description Excerpts from Flagstone Proposal Financial Return to the City Schedule of Financial Return to the City Cash Flows for Retail, Restaurant, Hotel and Marina 26 27 28 28 29 31 32 33 34 68 72 77 WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 2 Submitted into the public reco il V connection with item er.0 on 516111{ City Clerk Island Gardens at Watson Island, 1050 MacArthur Causeway, Miami, Florida Location: SUMMARY OF PERTINENT DATA Southwest side of Watson Island, on the MacArthur Causeway, Miami, Florida. It fronts the Intracoastal Waterway and Government Cut. Address: 1050 MacArthur Causeway Miami, Florida 33132 Type of Use: Vacant land Zoning: C-1 (Restricted Commercial) and PR (Parks and Recreation) Districts, by the city of Miami, Florida. This appraisal is based on the proposed density levels and uses per the proposal by Flagstone Properties, LLC. Land Area: 0) 10.8 acres of upland 13.4 acres of bay bottom Value by the Cost Approach: Not Applicable Value by the Income Capitalization Approach: Not Applicable Value by the Sales Comparison Approach: $28,000,000 (Upland Value) + 1,430,000 (Submerged Land Value) $29,430,000 ESTIMATED MARKET VALUE ESTIMATE OF THE FEE SIMPLE INTEREST: $29,430,000 ESTIMATED MARKET RENT: $2,060,000 per year (7% of Market Value), or $1,472,000 (5% of Market Value) per year plus 2% of Gross Revenues. Base rents would be subject to compounded Consumer Price Index (CPI) increases every five years, whichever is greater Date of Valuation: February 1, 2002 Date of Report: March 1, 2002 (L) The above size has been taken from the developer's proposal. WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 3 Submitted into the public record in connection with itemoL iQi on 5/8/(LJ City Clerk MIAMI-DADE COUNTY MAP WARONKER & ROSEN, INC. 44 REAL ESTATE APPRAISERS AND CONSULTANTS 4 Submitted into the public record in connection with item ',`ti on 4110.1 City Clerk SITE PLAN WARONKER & ROSEN, INC. 0 REAL ESTATE APPRAISERS AND CONSULTANTS 5 Submitted into the public record in connection with 21.10 itemL.ii on SMIL1 City Clerk AERIAL PHOTOGRAPH WARONKER 8. ROSEN, INC, 4 REAL ESTATE APPRAISERS AND CONSULTANTS CITY OF MTAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Johnny Martinez, City Manager Alice Bravo, Assistant City Manager FROM: Robin J. Jackson, Assistant City Attorneys DATE: July 25, 2012 `'�� RE: Flagstone Island Gardens Project on Watson Island Proposed Second Amended and Restated Partial Modification of Restrictions to Deed No. 19447-G QUESTION PRESENTED: You have asked whether changes to the City's financial provisions from those in an earlier Amended and Restated State Partial Waiver would result in violations of the City's Charter, Referendum, or other applicable legal provisions related to the Flagstone Island Gardens Project (the "Flagstone Project") on Watson Island, if such changes are detrimental to the City. BRIEF FACTUAL BACKGROUND: As of September 15, 2011, the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida ("Board of Trustees"), the City of Miami ("City'), and Flagstone Island Gardens, LLC ("Flagstone") entered into an Amended and Restated Partial Modification of Restrictions to Deed No. 19447-F ("Amended and Restated State Partial Waiver") in connection with property on Watson Island (the "Property") deeded in 1949 to the City as owner by the Board of Trustees. The Amended and Restated State Partial Waiver complies with the City's Charter provisions regarding the Request For Proposals ("RFP") for the lease of the Property, Flagstone's Response, and the required November 6, 2001 Referendum (the "Referendum"). Due to a technical default by Flagstone, but not by the City, the Board of Trustees terminated the Amended and Restated State Partial Waiver effective January 17, 2012, and FIagstone is in the processes of curing its default to the Board of Trustees. Because of its cure efforts, Flagstone is not in default to the City under its other agreements with the City. At the request of Flagstone, the Board of Trustees and the City are considering a proposed Second Amended and Restated Partial Modification of Restrictions to Deed No. 19447-G ("Second Amendment'). Rjj328256 Submitted into the public record in connection ith • item t� on 5JS'/lt City Clerk 6ik CITY OF MEAME OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Johnny Martinez, City Manager Alice Bravo, Assistant City Manager FROM: Robin J. Jackson, Assistant City Attomeyn DATE: July 25, 2012 `ac RE: Flagstone Island Gardens Project on Watson Island Proposed Second Amended and Restated Partial Modification of Restrictions to Deed No. 19447-G QUESTION PRESENTED: You have asked whether changes to the City's financial provisions from those in an earlier Amended and Restated State Partial Waiver would result in violations of the City's Charter, Referendum, or other applicable legal provisions related to the Flagstone Island Gardens Project (the "Flagstone Project") on Watson Island, if such changes are detrimental to the City. BRIEF FACTUAL BACKGROUND: As of September 15, 2011, the Board of Trustees of the Internal Improvement Trust Fund of the State of Florida ("Board of Trustees"), the City of Miami ("City'), and Flagstone Island Gardens, LLC ("Flagstone") entered into an Amended and Restated Partial Modification of Restrictions to Deed No. 19447-F ("Amended and Restated State Partial Waiver") in connection with property on Watson Island (the "Property") deeded in 1949 to the City as owner by the Board of Trustees. • The Amended and Restated State Partial Waiver complies with the City's Charter provisions regarding the Request For Proposals ("RFP") for the lease of the Property, Flagstone's Response, and the required November 6, 2001 Referendum (the "Referendum"). Due to a technical default by Flagstone, but not by the City, the Board of Trustees terminated the Amended and Restated State Partial Waiver effective January 17, 2012, and FIagstone is in the processes of curing its default to the Board of Trustees. Because of its cure efforts, Flagstone is not in default to the City under its other agreements with the City. At the request of Flagstone, the Board of Trustees and the City are considering a proposed Second Amended and Restated Partial Modification of Restrictions to Deed No. 19447-G ("Second Amendment'). Rjj328256 Submitted into the public record in connection with itemgE.It on 51811q City Clerk MI MIAMI QUESTIONS / PROPUESTAS DE MIAMI BALLOT QUESTION NO. 1 AUTHORIZING 45-YEAR LEASE OF CITY -OWNED UPLAND/SUBMERGED LAND ON WATSON ISLAND Shall the City lease City -owned land consisting of 24.2 total upland and submerged acres on Watson Island to Flagstone Properties, LLC, for development of a mega yacht marina, fish market, hotels with timeshare units, a maritime museum, public gardens, cultural facilities, restaurants, retail and support facilities, for 45 years with two 15-year renewals, subject to capital investment, subject to a minimum annual guaranteed rent of $2,000,000 and other conditions the City may require? CUESTIONAMiENTO ELECTORAL NUM. 1 MEDiANTE .EL CUAL SE AUTORIZA EL ARRENDAM!ENTO DE TIERRAS AL TAS Y SUMERGIDAS PERTENEC!ENTES A LA CIUDAD DE MIAMI EN LA ISLA WATSON, POR LIN PERIODO DE 45 AROS Debera la Ciudad arrendar tierra perteneciente a la Ciudad que consiste en un total de 24.2 acres de ticrra. altos y sumergidas en la Isla Watson a la comparlia Flagstone Properties, LLC. por un perlodo de 45 anos con dos periodos de renovacibn de 15 anos cada uno, sujeto a una ihversibn de capital, y sujeto a un alquiler anual minimo garantizado de $2,000,000 y okras condiciones que la Ciudad pueda estipular, a fin de que esta compaffia lleve a cabo el fomento y desarrollo de dichas tierras con una mega marina, o fondeadero para yates, una pescaderia, hoteles con unidades de condominio a tiempo compar ido, un museo marll/mo, jardfnes publlcos, instalaciones cu/turales, restaurantes, tiendas, e instalaciones de apoyo? KESYON NO. 1 SOU BiLTEN DE VOT KI OTORiZE LWE PWOPRIYETE WATSON ISLAND KJ KONPOSE DE KAWO TE= PLAT ANSANM AK TE Ki ANBA DLO POU YON PERYOD DE 45 AN Eske VI la gendwa ?we pwopriyete ki konpoze de yon total de 24.2 kawo to plat ansanm ak to ki anba dlo sou pwopriyete depi Watson Island jiska Flagstone, ak yon koporasyon ki gen responsabilite limite, pou devlope yon kokenn chenn Marina pou Yacht, mache pwason, otel ansanm ak you seri de pwopriyete pou pataje, yon mize maritim, jaden piblik, sant kiltirel, restoran, magazen ak tout sant dapui yo pou yon peryod de 45 an ak de renouvelman de 15 an si envestisman kapital la pemet li e pouvi ke genyen yon twaye minimbm garanti de $2,000,000 ansanm ak tout lot kondisyon vil la to mande? YES /S1/WI NO/NOINON 272 273 7 Submitted into the public record in connection with itemgr.ii on 5f8J14 City Clerk • Marina _ _ „.... ,. • Accessible to the public during the day • Over 48 slips and 7,000 linear feet of dockage • To be rated a "5-Gold Anchor" Marina Facility Fish Market • Open air with retail and dining , _ ;.;1 • Negotiating vuth exis ,ing fish market operators to relocate their. operations into Hotels r :� f 4 ,'" " .. ' df' • Wave -Hotel - Operated by Conrad, a„division of Hilton '- 175 rooms viiith-5Q,tirne4hare.IIicensed suites; 16 stories, , • Lighthouse otel - Operated by the Regent Group ''"`' . • 250 standard rooms with 50 time-shared licensed suites, 22 a Dries Restaurants/Retail T, • As fiany as 14 restaurants varying in menu anpricei• v° • Intemetional mix of retail shops not currently in i. -., t, it tothe City �; Return�'R ,;,� ,, , _ ', • $1 million' • eryear for construction rent ��°. �• 4.',' p, 9r , 7: • $2 million; per year as guaranteed minienurwr' pia rent be ilj n iirolect opes"' • 1 % of gross revenue from project corn gents • • and,A m timeshare lice w.. 4St} 1 • For more information: Log tin to :wwvl+.ci.miami,fi'us http://www.ci:rt Mi.fl. Tune into City of Miami Televisidn'(CC 9) bailyi`6-1,0 AM and 7-11 PM, &r Call Ballot Hotline: (305) 579-6493 `� ''° ' "'"`-," Ballot Question # 1 Watson Island Development Island Gardens by Flagstone Properties, LLC J. Submitted into the public reco&c) i8 connection with item ra, on Sibs l Li City Clerk The City of Miami requested proposals for the redevelopment of the existing 13.4-acre Watson island Marina and the adjacent 10.8-acres of undeveloped (arid into a world bless marina and mixed use water- front development to emphasize diverse and public open spaces, pedestrian activity, and offer a wel- coming mix of uses to residents and visitors. After a competitive process, the City Commission chose Flagstone Properties, LLC to create a mixed -use development on Watson Island. The development features a fish market, marina facilities, public gardens, a maritime gallery, two hotels, as many as 14 restaurants, and retail shops - Island Gardens. Flagstone will invest $281 million in the project. No public funds are involved. Details of the Flagstone proposal include: Job Creation • Approximately 5,000 construction jobs during two year construction period • Approximately 2,500 permanent jobs will be created • Will create a Skills Training Center and an Employment Career Center • Will enter into a "First Source" Hiring Agreement to hire City of Miarni residents Parks • 50% of the minimum base rent paid to the City will be set aside for development and programming of parks throughout the City • Approximately 7-acres on the south side of the island parallel to Government Cut has been designated to remain as a public park Public Amenities and Cultural Arts • Approximately 60% of the upland is accessible for-poblic use • Partnerships with Fairchild Tropical Gardens andFlisforical`Association of South Florida • Festival terrace programmed %or annual events _ ' " All ✓._ .. - s ? ,•RrM if •,\ si new facilities' BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA PARTIAL MODIFICATION OF ORIGINAL RESTRICTIONS DEED NO. 19447-H KNOW ALL MEN BY THESE PRESENTS: That WHEREAS, the BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND OF THE STATE OF FLORIDA ("BOARD OF TRUSTEES"), is by Section 253.03, Florida Statutes, authorized and empowered to modify restricted uses for certain lands under the terms and conditions set forth herein; and WHEREAS, the BOARD OF TRUSTEES conveyed to the City of Miami ("CITY") certain lands more particularly described in Deed No. 19447, recorded in Deed Book 3130, Page 257, Public Records of Miami -Dade County, Florida (the "Deed"); and WHEREAS, the Deed contains the following restrictions (the "Original Restrictions"): PROVIDED, HOWEVER, anything herein to the contrary notwithstanding, this deed is given and granted upon the express condition subsequent that the Grantee herein or its successors and assigns shall never sell or convey or lease the above described 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. PROVIDED, FURTHER, anything herein to the contrary notwithstanding, this deed is given and granted upon the further express condition subsequent that the Grantee herein or its successors or assigns shall 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 above described lands or any part thereof for any private use or purpose, as distinguished from any public or municipal use or purpose. It is covenanted and agreed that the above conditions subsequent shall run with the land and any violation thereof shall render this deed null and void and the above -described lands shall, in any event, revert to the Grantors or their successors. WHEREAS, the BOARD OF TRUSTEES approved a modification of the Original Restrictions on June 24, 2004, and executed and delivered an instrument entitled "Partial Modification of Restrictions" on March 2, 2005, and same was recorded on March 18, 2005, in Official Records Book 23181, Page 775, Public Records of Miami -Dade County, Florida; and Submitted into the public reco d to connection with item �.}, on5`B,ly City Clerk IN THE CIRCUIT COURT FOR THE 1 1 TH JUDICIAL CIRCUIT IN AND FOR MIAMI-DADE COUNTY, FLORIDA GENERAL JURISDICTION DIVISION STEPHEN HERBITS, CASE NO.: 13-23128 CA 31 Plaintiff, vs. THE CITY OF MIAMI, Defendant. ORDER GRANTING WRIT OF MANDAMUS THIS CAUSE came before the Court on "Plaintiff's Motion for Order Enforcing City's Obligation to Produce Public Records and Request for Immediate Hearing Under Section 11.011(1), Florida Statutes." The Court, having reviewed the motion, the response, having considered the arguments of counsel, having conducted an in camera inspection of the records at issue, and being otherwise fully advised in the premises, hereby finds as follows: 1. In response to a January 14, 2014 public records request made by the Plaintiff, Stephen Herbits, the Defendant, the City of Miami, asserted that certain documents were exempt from disclosure pursuant to Florida Statute section 1 19.071(1)(d). Herbits has moved for issuance of a writ of mandamus and/or injunctive relief to require the City of Miami to produce the documents. 2. The documents have been provided to the Court for an in camera inspection. 3. Section 119.071(1)(d) creates an attorney -client privilege exemption from the broad requirement that government records be made available to the public. See Lightbourne v. McCollum, 969 So. 2d 326 (Fla. 2007). It exempts: 1. A public record that was prepared by an agency attorney (including an attorney employed or retained by the agency or employed or retained by another public officer or agency to protect or represent the interests of the agency having custody of the record) or prepared at the attorney's express direction, that reflects a mental impression, conclusion, litigation strategy, or legal theory of the attorney or the agency, and that was prepared Submitted into the public record in connection with itemPiu .11 on j. /l� City Clerk Goo exclusively for civil or criminal litigation or for adversarial administrative proceedings, or that was prepared in anticipation of imminent civil or criminal litigation or imminent adversarial administrative proceedings, is exempt from s. 119.07(1) and s. 24(a), Art. l of the State Constitution until the conclusion of the litigation or adversarial administrative proceedings. For purposes of capital collateral litigation as set forth in s. 27.7001, the Attorney General's office is entitled to claim this exemption for those public records prepared for direct appeal as well as for all capital collateral litigation after direct appeal until execution of sentence or imposition of a life sentence. 2. This exemption is not waived by the release of such public record to another public employee or officer of the same agency or any person consulted by the agency attorney. When asserting the right to withhold a public record pursuant to this paragraph, the agency shall identify the potential parties to any such criminal or civil litigation or adversarial administrative proceedings. If a court finds that the document or other record has been improperly withheld under this paragraph, the party seeking access to such document or record shall be awarded reasonable attorney's fees and costs in addition to any other remedy ordered by the court. 4. "The public records act is to be construed liberally in favor of openness, and all exemptions from disclosure are to be construed narrowly and limited in their designated purpose."' Lighlhourne 969 So. 2d at 332-33 (quoting City of Riviera Beach v. Barfield, 642 So.2d 1135, 1136 (Fla. 4th DCA 1994)). 5. Accordingly, the exemption provided by section 119.071(I)(d) "only extends to those records that contain the attorney's mental impressions, litigation strategy, or legal theory and are prepared exclusively for litigation or in anticipation of imminent litigation." Lighlhourne 969 So. 2d at 332 (emphasis in original). 6. "Imminent" means "About to occur; impending." AMERICAN HERITAGE COLLEGE DICTIONARY 679 (3d ed. 1993). 7. The governmental agency must identify the potential parties to imminent litigation, and has the burden of showing that the requested documents fall within the statutory requirements of the exemption. See Fla. Stat. § 1 19.071(I)(d)2; Lighlhourne 969 So. 2d at 333. 8. Thus, the question in the instant case is whether the City has met its burden of demonstrating that the records at issue contain the attorney's mental impressions, litigation strategy, or legal theory and were prepared exclusively for litigation or in anticipation of irminent litigation. Submitted into the public record ip connection with itemQ IjI on 5f /lL/ City Clerk 9. Based upon a review of the record and the in camera inspection, it does not appear that any of the documents at issue were prepared in anticipation of imminent litigation. a. The first document on the City's privilege log is the "Watson Island Title History." As the title suggests, this is a summary of the title history of the Watson Island property. The title documents discussed in the summary are included as attachments to the summary. This document and its attachments were prepared in order to review ownership of the property. They were not prepared in anticipation of imminent litigation. Having reviewed the record and the documents submitted in camera, the Court finds that the City perhaps had these documents prepared for the possibility of potential litigation, but that is far different than imminent litigation. b. The second document on the City's privilege log is an email dated October 11, 2013, and an attached draft of an engagement letter between the City and the Holland & Knight law firm. From the terms of the engagement letter itself, however, the engagement was not for the purpose of imminent litigation, but for the purpose of reviewing property ownership. Although there was an understanding that litigation might arise out of ownership issues, by the terms of the engagement letter, it did not cover any such potential litigation. The Court finds this document was not prepared in anticipation of imminent litigation. c. The third document on the City's privilege log is an email dated October 3, 2013, and an earlier draft of the same engagement letter. The Court finds this document also was not prepared in anticipation of imminent litigation. d. The fourth document on the privilege log is a short email chain dated January 6, 2014 which asks various individuals to send an attorney named Roberto Blanch an engagement letter and other documents. As this email relates to the engagement of Mr. Blanch to review ownership property issues, the Court finds that is was not preparedin anticipation of imminent litigation (again expressly excluding from the agreement any potential litigation that could arise out of such issues). e. The fifth document on the privilege log is an email chain dated January 7, 2014, which is identical to the January 6`h chain except that it includes a follow-up thank you note. The Court finds that this note was not prepared in anticipation of litigation. f. The sixth document is another branch of the email chain, this one dated January 8, 2014, in which one of the individuals from the previous chain asked for and received Mr. Blanch's contact information in order to prepare an engagement letter for him. As with the other related emails, the Court finds that this was not Submitted into the public record in connection with item or; ti on 51`ii1y City Clerk prepared in anticipation of imminent litigation, but instead for the purpose of reviewing property ownership. g. The seventh document is an email chain dated January 8, 2014, following up the previous email, and similarly the Court finds that it was not prepared in anticipation of imminent litigation. h. The eighth document is another email dated January 8, 2014, attaching a draft of the engagement letter. From the terms of the draft, it is clear that the purpose of the engagement letter is for the review of property ownership, and that it was not prepared in anticipation of imminent litigation, and the letter expressly does not cover potential litigation that could possibly arise from the matter. i. The ninth document is an email dated January 9, 2014, from Roberto Blanch, asking for previously referenced documents. The Court finds that this document relates to Mr. Blanch's engagement to review property ownership issues, and not to imminent litigation. J. The tenth document is another email dated January 9, 2014 from Roberto Blanch, asking that the previous email be disregarded. The Court finds that this document was not prepared in anticipation of imminent litigation. k. The eleventh document is an email dated January 9, 2014, which responds to the previous email and simply seeks to arrange a meeting between the parties to the email. As with the other emails in this group, the Court finds that it was not prepared in anticipation of imminent litigation. I. The twelfth document is a copy of the second. Again, the Court finds that it was not prepared in anticipation of imminent litigation. m. The thirteenth document is an email dated October 18, 2013. It is another draft of the engagement letter between the City and Holland & Knight. As with the other versions of the engagement letter, it was prepared in connection with the review of the ownership of properties, and by its terms did not cover litigation that might arise out of such review. Accordingly, the Court finds that it was not prepared in anticipation of imminent litigation. n. The fourteenth document is another email dated October 18, 2013, with another draft of the Holland & Knight engagement letter attached. Like the other versions, this draft was prepared in connection with the review of the ownership of properties, and by its terms did not cover litigation that might arise out of such review. The Court finds that it was not prepared in anticipation of imminent litigation. Submitted into the public record i connection with item vt�t on 5(81 i tl City Clerk o. The fifteenth document is an email dated October 18, 2013, related to the draft of the engagement letter that was done for the purposes of reviewing property ownership, and like the letter itself, the Court finds that it was not prepared in anticipation of imminent litigation. p. q• The sixteenth document is an email dated October 21, 2013, with another draft of the Holland & Knight engagement letter attached. As with the previous version, this draft was prepared in connection with the review of the ownership of properties, and by its terms did not cover litigation that might arise out of such review. Accordingly, the Court finds that it was not prepared in anticipation of imminent litigation. The seventeenth document' is apparently the final draft of the Holland & Knight engagement letter. As with all the drafts, it is for the purpose of reviewing ownership of properties, and expressly does not deal with potential future litigation that could possibly arise out of the matter. It was not prepared in anticipation of imminent litigation. r. The eighteenth document is another draft of the engagement letter between the City and Mr. Blanch, dated January 9, 2014. The purpose of this letter is to review property ownership and it expressly does not cover any possible litigation that might arise out of the matter. The Court finds that it was not prepared in anticipation of imminent litigation. s. The nineteenth document is a copy of the seventh document, not prepared in anticipation of imminent litigation. t. The twentieth document is a copy of the eighth document, not prepared in anticipation of imminent litigation. u. The twenty-first document is dated January 24, 2014, and is a draft engagement letter between the City and the McDonald Hopkins law firm. As with the engagement letters with other attorneys, this letter was for the purpose of reviewing property ownership and expressly excluded litigation that might possibly arise out of the matter from its terms. Accordingly, the Court finds that it was not prepared in anticipation of imminent litigation. v. The twenty-second document is a photocopy of a case from Southern Second. The citation to the case is listed in the privilege log. It does not have any notes, There are actually three copies of this document included in the in camera inspection materials, but they appear to be identical except that one of them is signed and printed on City of Miami letterhead. Submitted into the public record 'n connection with itemecu on 518119 City Clerk underlining, or highlighting on it. There is no indication that this case was photocopied in anticipation of imminent litigation. w. The final document is titled "NOTES" and discusses submerged land deed issues. Since the City perceived "issues" with these land deeds, it is possible that it anticipated the potential for posssible litigation in preparing these notes. However, there is no indication in the notes, or in the record in general that imminent litigation prompted the creation of these notes. Accordingly, the Court finds that it was not prepared in anticipation of imminent litigation. 10. The City has not demonstrated that it prepared any of the documents in anticipation of imminent litigation. The documents do not meet the requirements of section 1 19.071(I)(d), so they must be produced. Mandamus is an appropriate remedy to compel a city's timely production of public records. Poole v. City of Port Orange, 33 So. 3d 739, 741 (Fla. 5th DCA 2010). Therefore, for the reasons stated herein, it is hereby ORDERED and ADJUDGED that: I. Plaintiff's request for a writ of mandamus is granted. The City shall furnish the materials discussed in this order to Plaintiff by close of business on Monday, May 12, 2014.. DONE AND ORDERED in Chambers at Miami -Dade County, Florida, on 05/08/14. CYNAMON RCUIT COURT JUDGE No Further Judicial Action Required on THIS MOTION CLERK TO RECLOSE CASE IF POST JUDGMENT The parties served with this Order are indicated in the accompanying lath Circuit email confirmation which includes all emails provided by the submitter. The movant shall IMMEDIATELY serve a true and correct copy of this Order, by mail, facsimile, email or hand -delivery, to all parties/counsel of record for whom service is not indicated by the accompanying llth Circuit confirmation, and file proof of service with the Clerk of Court. Signed original order sent electronically to the Clerk of Courts for filing in the Court file. Submitted into the public record connection with "Item -FLEA_ on 51%114 City Clerk