HomeMy WebLinkAboutSummary FormDate: 4/28/2014
AGENDA ITEM SUMMARY FORM
FILE ID: 14-00431
Law Department
Matter ID No.
14-1109
Requesting Department: Public Facilities/Asset Mgmt.
Commission Meeting Date: 5/8/2014 District Impacted: 2
Type: El Resolution ❑ Ordinance (l Emergency Ordinance ❑ Discussion Item
❑ Other
Subject: Resolution to negotiate and execute a Compliance Agreement between the City and Flagstone.
Purpose of Item:
A Resolution of the Miami City Commission, with attachment(s) authorizing the City Manager to negotiate and
execute, in a form acceptable to the City Attorney, a Compliance Agreement with Flagstone Island Gardens,
LLC ("Developer") for Developer's continuing compliance with the Partial Modification of Original
Restrictions to Deed No. 19447-H (the "Modification of Restrictions"), with the Board of Trustees of the
Internal Improvement Trust Fund of the State of Florida (the "Board of Trustees") and the City of Miami
("City"), subject to prior approval by the Board of Trustees, and to undertake all the steps necessary to
supersede and terminate Deed No. 19447-F.
Background Information:
See Supplemental Page
Budget Impact Analysis
NO Is this item related to revenue?
NO Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
CIP N/A
If using or receiving capital funds
Grants N/A
Final Approvals
(SIGN AND DATE)
Bud
Risk Management
Purchasing N/A Dept. Director
Chief City Manage
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SUPPLEMENTAL PAGE
Subject: Resolution to negotiate and execute a Compliance Agreement between the City and Flagstone.
Background Information:
The City of Miami ("City") is the owner of certain real property located on Watson Island at approximately
1050 MacArthur Causeway, Miami, Florida (the "Property").
Pursuant to Resolution No. 01-972, the City Commission adopted September 17, 2001, and Resolution No. 01-
1028, adopted September 25, 2001, polled the electors of the City of Miami regarding leasing the Property to a
developer for the project and pursuant to Referendum on November 6, 2001 (the "Referendum") the voters
returned an affirmative vote. The City entered into an agreement with the Flagstone Island Gardens
("Developer") that has certain required conditions precedent that must be met for the future execution of a
long-term Ground Lease with the Developer.
The Board of Trustees of the Internal Improvement Trust Fund of the State of Florida (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. The
Board of Trustees then approved an additional modification of the Original Restrictions on August 16, 2011,
and executed and delivered an instrument entitled "Amended and Restated Partial Modification of Restrictions"
on September 15, 2011, and same was recorded on September 16, 2011, in Official Records Book 27828, Page
3675, Public Records of Miami -Dade County, Florida. The Amended and Restated Partial Modification of
Restrictions automatically and immediately terminated on January 18, 2012, through no fault of the City, the
Board of Trustees, or the State of Florida Department of Environmental Protection, Division of State Lands
(the "Division").
The City is still desirous of leasing that portion of the lands conveyed to the City by the Deed which is
described in Exhibit "A", attached hereto and made a part hereof (the "Property"), to the Developer to allow for
the construction and operation of a public and private commercial marina and mixed use waterfront
development, including any and all uses permitted under the Ground Lease, as defined below (as a whole or in
phases, the "Development"), and in order to accomplish the same, it is necessary that the Original Restrictions
be modified by the Board of Trustees.
The Development is still in the public interest because it will convert the Property from a sparse, unimproved
field to a location that will contain cultural, scenic, and recreational values that will benefit the public while at
the same time retaining 60% of the Development as open space in the form of gardens, walkways, and a
waterfront promenade available to residents and visitors for cultural and recreational activities. The
Development will also aid tourism, provide training and employment opportunities to residents, and generate
significant tax revenue for the City, Miami -Dade County and the State of Florida.
The Developer understands and agrees that as additional conditions precedent to the entering into the Ground
Lease(s) with the City, (1) the Developer must execute the related Compliance Agreement for Developer's
Continuing Compliance with the Modification of Restrictions (Compliance Agreement"); and (2) as a condition
of the Compliance Agreement, the Developer must provide to the City a continuing five hundred thousand
dollar ($500,000) payment and performance bond as additional security in connection with the existing Escrow
Agreement, between the City, the Developer, and Shutts & Bowen LLP as Escrow Agent.
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