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HomeMy WebLinkAboutMemorandumCITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Victoria Mendez DATE: May 25, 2017 RE: Proposed Settlement for City Commission Meeting — April 27, 2017 1000 Brickell, Ltd., f/k/a 1000 Brickell, Inc., and Kai Properties, Ltd. v City of Miami Case No. 14-11755 CA 23 File No. 2050 The attached proposed Resolution seeks authorization for settlement of all claims against the City of Miami, pursuant to the terms of the written settlement agreement. This action was brought by the law firm of Duane Morris, LLP, on behalf of 1000 Brickell, Ltd f/k/a 1000 Brickell, Inc., and Kai Properties, Ltd., for declaratory and injunctive relief relating to a deed restriction. The Office of the City Attorney has investigated and evaluated this case and has approved the recommendation of this settlement. Attachment(s) cc: Daniel J. Alfonso, City Manager Christopher Rose, Director, Office of Management and Budget Anna Medina, Agenda Coordinator VM/BLM/CAG Attachment(s) 2050 Exhibit City of Miami Legislation Resolution File Number: 2050 TO BE DEFERRED. City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING SETTLEMENT OF ALL CLAIMS AND DEMANDS IN THE CASE OF 1000 BRICKELL, LTD., F/K/A 1000 BRICKELL, INC., AND KAI PROPERTIES, LTD. V. CITY OF MIAMI, CASE NO. 14-11755 CA 23, PENDING IN THE CIRCUIT COURT IN AND FOR MIAMI- DADE COUNTY, FLORIDA, PURSUANT TO THE TERMS OF THE SETTLEMENT AGREEMENT; AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, AND ALL NECESSARY DOCUMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, TO EFFECTUATE THE SETTLEMENT AGREEMENT. WHEREAS, 1000 Brickell, Inc. conveyed two (2) parcels of land to the City of Miami ("City") in 1974 that are located at 20 Southeast 10th Street ("South Parcel") and 25 Southeast 10th Street ("North Parcel") pursuant to a single warranty deed that later became known as the Allen Morris Park; and WHEREAS, the warranty deed for the parcels included a restriction that the parcels were to be used for public park purposes and all rights, title and interest in the property would revert to the grantor in the event any part of the properties were used for any purpose other than public park purposes; and WHEREAS, on or about June 27, 2013, the City passed resolutions declaring the South Parcel as surplus, re -zoning the parcel from a public park and recreation to an urban central business district, and approving its conveyance to a private party, Brickell Flatiron, LLC; and WHEREAS, the grantor contends it withdrew its consent to the transfer of the South Parcel when Brickell Flatiron assigned its rights under the contract to a third party, Regents Park Investments, LLC; and WHEREAS, the City did not convey the South Parcel to a private party and contends the South Parcel is still used as a public park; and WHEREAS, on or about May 5, 2014, 1000 Brickell Ltd., as successor in interest to 1000 Brickell, Inc., initiated a lawsuit against the City in the Circuit Court in and for Miami -Dade County, Florida, styled 1000 Brickell, Ltd., f/k/a 1000 Brickell, Inc., and Kai Properties, Ltd., v. City of Miami, Case No. 14-11755 CA 23, which lawsuit alleged claims for declaratory and injunctive relief pertaining to the deed restriction for the South Parcel; and WHEREAS, 1000 Brickell, Ltd., contends the City violated the deed restriction by approving the zoning change and authorizing the conveyance of the South Parcel to a private party; and WHEREAS, the City and 1000 Brickell, Ltd., have agreed to a Settlement Agreement with terms negotiated by the Department of Real Estate and Asset Management that provides that the City will convey the North Parcel to 1000 Brickell, Ltd., and retain the South Parcel as a park and that the City and 1000 Brickell, Ltd. will enter a profit participation agreement for a real estate development project which will utilize the North Parcel; and WHEREAS, the City, 1000 Brickell, Ltd., and Kai Properties, Ltd., have agreed to execution of a written Settlement Agreement memorializing the terms of the settlement, to be executed by 1000 Brickell, Ltd., and the City Manager; and WHEREAS, the Office of the City Attorney has investigated this lawsuit and recommends settlement; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Commission authorizes the settlement of all claims and demands in the case of 1000 Brickell, Ltd., f/k/a 1000 Brickell, Inc., and Kai Properties, Ltd., v. City of Miami, Case No. 14-11755 CA 23, pending in the Circuit Court in and for Miami -Dade County, Florida, pursuant to the terms of the Settlement Agreement. Section 3. The City Manager is authorized' to execute the Settlement Agreement, in substantially the attached form, and all necessary documents, in a form acceptable to the City Attorney, for said purpose. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, City Attor ey 4/17/2017 1 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney including but not limited to those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.