HomeMy WebLinkAboutSubmittal-Brian May-Presentation of FlagstoneSubmitted into the public Sp '
record foriten s
on 31 11• .
City Clerk
Flagstone Island Gardens
Presentation
May 30, 2017
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Submitted into the pubil
recon ord fpr /3d 119s� .
City Clerk
Medina, Anna
Subject: FW: Flagstone statement
From: Ken Russell <krussetl@miamiigov.com>
Date: Friday, May 12, 2017 at 1:55 PM
To: "Jones, Joyce" <JJones@miamigov.com>, "Hannon, Todd" <thannon ftmiamigov.com>
Subject: FW: Flagstone statement
I placed this discussion item on the agenda today because I'm frustrated.
It has been more than 15 years since the City of Miami and our voters gave the right to develop our public land on Watson
Island to Flagstone.
Ever since, we've entertained a litany of excuses as to why very little of the project voters approved has been built.
At this moment we have before us what I think is a pretty clear issue — Flagstone had a deadline to have all its material
permits approved and actually begin construction by May 1 of this year. I understand they moved some dirt around a few days
before to try to convince us that construction had begun. Not the first time they've done that, by the way.
But their phased permit, which allows them to begin building before the master permit is finally approved, actually expired
back in March and was not reinstated until May 4.
Three days late? No - it's 15 years and three days late.
Fifteen years we've been waiting for Flagstone to deliver what it promised.
Here's what the Miami Herald wrote in December of 2002: "The project, approved in concept by city voters last year, would
convert 10 acres of land into a bustling neighborhood - with two five-star hotels, a fish market and a yacht marina. It's
expected to be complete in about three years."
Back then, the City was looking to attract signature projects that would pump up our local economy. Midtown didn't yet exist.
Wynwood as we know it today didn't exist. Downtown and BrickE I were a shadow of their current form. We didn't have the
arsht, the Frost, the Perez Museums. Most of all, we didn't have the congestion and infrastructure needs that we do
now. And yet here we are, 15 plus years later, still talking about Flagstone. At this point, I have to ask, is Flagstone even
relevant anymore to the vision of what our public land on Watson Island could and should be? Is this project - should it ever
be built and I'm pretty skeptical abbut that -- what Miami needs and deserves?
The Voters spoke back then, but if they spoke today, what would they say? If we were to plan that space right now, I would
advocate for an RFP that has the developer implementing a multimodal transit hub that connects and finances the Baylink and
water taxis. It could be the point of public transit to all of the best amenities on the island. It could be a beautiful green space
that would give the most amazing views of our downtown skyline. But the voters don't have a say. Unless this developer is in
default, and I believe that they are.
In Paragraph Vl.a ofr the Amended and restated Agreement to enter into the Ground lease from 2010, it states, "If...the
Parking/Retail Components do not Start Construction by 9/01/2016 (extended by Governor's executive order to May 1 of this
year), then Flagstone's rights to build any Components expires and ceases, the Agreement to Enter is terminated. City retains
all Prepaid Construction/Base Rent". t„
The Phrase "Begins Construction" is defined in Exhibit A of Composite Attachment 3 of the same agreement. The phrase
"Start Construction shall mean that all material plans and permits are approved and issued and the actual act physical
construction has begun.
1
Submitted into the public [.\
record fpr ite (s)
on 5I36 1)l . City Clerk
Furthermore, in paragraph VII, A of the same agreement, it states that "If the Retail Parking Components do not Commence
Consruction by the 72nd month from 9/01/2010 (being 8/31/2016 and now May 1, 2017) then there will be no crediting of
Prepaid Construction/base Rent, The City shall keep all Prepaid Construction Base Rent Received, the City can terminate the
Agreement to Enter, all Ground Leases, and the City can take back the Marina Component...and the balance of the project and
the property.
The phased permit expired and was not renewed before the date. The master building permit has not yet been obtained.
The City has lost millions in undervalued rent. The only silver lining is that we can now look at the land in the context of our
needs today. I hope for your support in giving the voters this long overdue chance.
I move that we direct the administration to issue a notice of default, and that our city attorney and auditor general conduct an
analysis of the various agreements to see if there are other breaches as well.
2
From: dustamante, Aldo
Sent: Thursday, May 04. 2017 3:49 PM
To Rotenberg. Daniel <ilRotenbaizemhsmKov.aaon
Subject RE: flagstone deadlier to begin Mali construction?
Submitted into the publican
record f r ite (s)
on 5 '50 7 • City Clerk
The Phased foundation Penn t was obu.ned by Flagstone on September 1" 2016 0n February 28, 2017 an inspection
was conducted by 0rtus Ergineeriig. P.A. and FtaitStont obtained Partial Approval. The approval was partial because ie
was for that portion of the foundation work completed at the tkie.
As port of the construction requirements,, the first phase of the work Is the ut i relocation work Flagstone obtained
thor FOOT Permit WASD Water. GERM Water,. Department of H abb. WASO Sewer and DERM Sewer permits in
2016. These were for the actual wort of the utility excitations.
Flagstone charged contractors and the new contractors for (instant appl ed for the Public Worts permit from the Gty
of Miami on or about Apra 17, 2017 mild obtained preionekry permit from the City of Miami Pubic Works on Apra
26, 2017 and began the site wort: torn rovements of Aped 28* 2017,
in addttoon to the above. pursuant tope Amended and Restat:1W Agreement to Enter into Ground tease &te+d
February L 2010. more spatifkca y St On 6-1.13(b):
"Fin stone shaft.. f j oppty to the C Foundoticn Promos widcaywrirnence site ratitity rNacotitwa work try such time
Ptrlod as necessary CO bean% such utility wade for tde appdcotk Major Project Components, (a) obtain and provide
any other ao�drtssrry proverramentN far celrt+riitacerttreriea f oorasbnicoallCr tiMe applicable Ari�ar Pyres
Ccwr ,onent(sj and (iv) continue to good forth efforts to keep active applicable Moller Prr ject Cali panent(s). and fie)
continue to use Good forth efforts to et** in full fora o w/ effect such FourApprrsvats, cry Approyol' Foundot cn
Perm, other nectssory gvovernrthenta/ approovots.... Should any c f the FOOT Approvals, the Oty Approvals. the
Foundation Permits, the Miomi•Ovdt County Class I Perini, for the Monrroi or ony other gowrmmhntal approvob
terriPerorihoi e ( ) sod) lapse shad not be a reason to extend the Outside Oates for construction commencement of
oral► Moor Protect Component, and (sij such temporary iapae shall not constitute on Event of flagstone's Default as long
as Flagstone continues to use good forth efforts to reinstate onystich lapse FOOTApprowilfs). Gty Approvolfs), Class f
Pernik the Foundation Pennies,, ar o y other governrnerntai a pp old, as applicable.'
Pursuant 10 the Ground tease. construction for the Ratai /Pending Components has commenced, end the next
milestone date is April 30, 2)20 for completion o orutrucuon ar those Components. Flagstone continues to
diligently work towards meets ail their deadlines. Therefore, the City does not believe they are in default of any of
the tease iequirementsat this time.
Respectfully submitted
Assistant Director
Department of Real Estate and Asset Management
444 SMi 2 Ostenue. 34 Floor
Mimi. Florida 33130
Phone: EttlftWfi
Facsimile, 305 400 5 61
fw+aiT abtsrar ,tJ arhtitiov
Submitted into the public5pr
record fpr it� s
on 511611) . City Clerk
Bustamante. Aldo
From: Bustamante, Aldo
Sent Friday, May 05, 2017 3:10 PM
To: Rotenberg, Daniel
Subject: RE: FW: Flagstone deadline to begin retail construction?
The Phased Permit is actually from Public Works and is not a "Building Permit", therefore you would not be able to find
it under the Building Permit search. The Permit number is 170417. All requirements for that permit have been met (i.e.
Bond posting, fees etc.)
Flagstone had all material permits and approvals for those portions of the work currently under construction. Not all
City agreements are the same in respect to pre -requisites to execute each agreement, it just depends on what was
negotiated per project. In the case of Flagstone, each major component has specific conditions unique to that
component. The Agreement to Enter Into Ground Lease had pre -requisites that had to be satisfied prior to executing
the Lease(s). In addition, both the Agreement to Enter Into Ground Lease and the Ground Lease specifies a
commencement date and a completion date as milestones that must be met for each component. Again, the required
permits/approvals were met pursuant to the requirements stated below in Section 6.1.13(b).
With regards to your question of Flagstone having all permits for full construction, no project has every required permit
from ground excavation to move in ready from the time of groundbreaking. Permits are obtained as that portion of the
work commences (i.e. drywall, windows, mechanical etc.) Pursuant to the Flagstone Agreement, those permits required
in the Agreement have been met to date.
Respectfully submitted,
to
Assistant Director
Department of Real Estate and Asset Management
444 SW 2 Avenue, 3rd Floor ;.,
Miami, Florida 33130
Phone: 305.416.1436
Facsimile: 305.400.5061
Email: abustamante@miamigov.com
From: Rotenberg, Daniel
Sent: Thursday, May 04, 2017 5:14 PM
To: Bustamante, Aldo <ABustamante@miamigov.com>
Subject: FW: FW: Flagstone deadline to begin retail construction?
Please see the questions below:
From: Smiley, David[mailto:dsmilev@miamiherald.com]
Sent: Thursday, May 04, 2017 4:48 PM
To: Rotenberg, Daniel <DRotenbere@miamigov.com>
Cc: Mendez, Victoria <VMendez@miamigov.com>; Gomez Jr., Francisco'(Frank) <FGomez@miamigov.com>; Gonzalez,
Luciana L. <Ionzalez@miamigov.com>
Subject: Re: FW: Flagstone deadline to begin retail construction?
1
City Commission Meeting Minutes
Submitted into the public
record for itel p(s) 34,1
on 5 130 (17 . City Clerk
July 10, 2014
9:30 A.M.
PA.1
14-00637
PERSONAL APPEARANCE
PRESENTATION
PRESENTATION BY REPRESENTATIVES OF THE FLAGSTONE GROUP
REGARDING THE CONSTRUCTION SCHEDULE OF THE ISLAND GARDENS
PROJECT.
14-00637 E-Mail - Flagstone Presentation.pdf
14-00637-Submittal-Brian May.pdf
PRESENTED
Chair Gort: Flagstone, you're up.
Brian May: Mr. Chairman, members of the Commission, Manager, my name is Brian May;
offices at 235 Catalonia Avenue in Coral Gables; here representing Flagstone, and I'm pleased
today to be able to give you an update on the commencement of the marina portion of the
Flagstone Project. As you know, back in May, this Commission approved a — conditions to a
State waiver and the Florida Cabinet with the Governor did so, as well, and it was that approval
that allowed us to actually move forward with the project, so we appreciate that. There have
unfortunately been recent reports in the media questioning whether the project actually
commenced or did not commence. 1 want to put on the record that those reports are being fed by
some intimidation tactics by a very wealthy activist on Venetia Island. 1 think you all know who
I'm speaking of; they appeared here at the last approval. And 1 just want to put on the record
that's the source of many of the reports that you're receiving. So as — but I'm — regardless of
that, I'm pleased to be here today to give you an update. I'm going to walk through a slide show
presentation which will lay out in detail for you the commencement of the project. Just as a brief
overview, I'm going to first outline the marina permits that we had to secure; then a timeline of
the marina construction; take you through the stages oldie marina construction and then give
you any additional information 1 also have with us Brit Cocos (phonetic) with Ocean
Consulting who is here to answer any technical questions that you may have. Just a basic
outline of our marina permits. Prior to submitting for any applications on marina permits, we
had to Mnduct phase one and phase two environmental assessments and reports at the site; this
is well before we had any go-ahead to actually, you know, begin constructing the project, and we
did that well before the approvals: that took place back in May. We have four major permits. We
have a marina and dredging permit from the U.S. (United States) Corps — U.S. Army Corps of
Engineers. That was issued back in November of 2005. 1t runs through October 18 of 2015.
And in addition to gener .1 permit conditions on that permit, we have 107 special conditions that
are required to follow. And 1 want to put that on the record, because what we are required to do
with regard to mitigation, environmental mitigation at the site, because it is the Biscayne Bay
Aquatic Preserve is significant. The mitigation efforts that we must take — that take place must
be detailed, they must be precise, and they must be very thorough. We also have an
environmental resource permit from the South Florida Water Management District. We have a
class one permit from Miami -Dade County; formerly DERM (Department of Environmental
Resource Management). which is now the Department of Regulatory and Economic Resources.
And we have a marine facilities annual operating permit: all of which are in place and all of
which extend beyond the construction period for the marina. Nest, 1 want to give you just a
basic timeline of the construction. The mitigation portion of it, while very significant at the front
end, the first portion of the mitigation that we will take place really ends next week, and I'll
explain that in later detail, but it's important to note that the full mitigation for the project runs
all the way through till the end of February of next year and that enables actually us putting in
place another artificial reef in the bay which I'll get to later. Following that, we have the
City ofMiani Page 12
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City Commission
Meeting Minutes July 10, 2014
upland construction taking place, so this is a really important part of the project. The new
bulkhead is to be built behind the existing bulkhead to protect the existingseawall and
strengthen the upland site. We are estimating that we will have piles delivered to the site to begin
that work, as I said, on July 22. The third phase of the marina construction project is the
dredging portion, and we are getting ready to file those permits as well --file for those plans as
well. We have those permits in place, but that will start around August 4, and that will continue
through February of 2015, and we have Cashman Dredging and Marine Company who Ls
actually contracted to perform that work. The dredge material will be barged and shipped to
three identified locations north of I-395, and that's for the purpose of creating a new habitat, and
new and qualified sand will be purchased and placed as topsoil where the sea grass will be
relocated The pier stage work, as I mentioned earlier, starts in January of 2015. We are in
negotiations with a pier work contractor at this point. The dock will begin to be delivered to the
site around November, pilings will commence around the same time, and the installation of the
docks will commence in January of 2015. And we expect, as I said, in October of '15 to have the
completion of the marina completely done. And it's important to note that Flagstone and Mr.
Bayraktar are actually funding that portion of the project themselves. Themselves. So that is a
clear demonstration to their commitment to move forward. That is the presentation that we have
thus far, and I'm -- we're happy to answer any questions that you may have.
Chair Gort: Okeydoke. Thank you Any questions?
Commissioner Carollo: Mr. Chairman.
Chair Gort: Yes, sir.
Commissioner Carollo: Thankyou. Ilust want to make sure from our City Attorney — and I
read the email (electronic) — to verify that the Citv's position is that they have commenced
construction from the date they were supposed to.
Robin Jones -Jackson (Senior Assistant City Attorney): Legally, from our standpoint, yes. And
I'd also like for our —
Chair Gort: Excuse me. And you are?
Ms. Jackson: I apologize, Mr. Chair and Commissioners, Mr. Mayor. Thank you Robin
Jackson, Senior Assistant City Attorney. I'd also like for our Deputy ACM (Assistant Cu).
Manager), who's a qualified engineer, for her to state her opinion, as well. Thank you
Chair Gort: Yes, ma'am, you're recognized.
Alice Bravo: Good morning. Alice Bravo, Deputy City Manager. Yes. from our perspective, this
is the first phase of the work environmental mitigation. They could not have started this work
before the State approved the deed restriction waiver. And also, the mitigation work is tied to the
benefits of the construction of the marina, so they could not have started this environmental work
not knowing that the marina could move forward. So this absolutely is the first phase of
construction.
Chair Gort: Thank you
Commissioner Carollo: Mr. Chairman, a follow-up question. This is to Mr. May. I understand
the timeline that you presented for the marina portion, but the whole concept was much bigger
than just the marina, so I haven't gone back to look at the timeline, but what is the timeline for
the rest of the project?
Mr. May: We expect to commence the upland portion of the project in the latter part of next
City ofMiami
Page 14 Printed on 8/6/2014
Submitted into the public
record f r it m(s) 3V 4
on 1 City Clerk
Flagstone Island Gardens
"Material Permits" to Commence Construction on Parking Retail Project Component
*Note: City Approved MUSP in 2007 — Minor Modification to 2007 MUSP is pending since October of 2016
Downtown DRI Reservation for all development impacts was reserved on April 15, 2005
Permit/Review
Miami -Dade WASA Master Agreement
Permit/Ref Number Date
ID# 19402a June 25, 2015
City Commission Reso-15-0273
Miami -Dade WASA Water Relocation DW-2016-016 February 25, 2016
Miami -Dade WASA Sewer Relocation DS-2016-507 February 25, 2016
Miami -Dade DERM Water Relocation 2016-WAT-EST-00049 March 212016
Florida Department of Health Utility Reloc. 312050-738-DSGP March 24, 2016
FDEP Sewer Relocation Permit 277169-099-DWC August 3, 2016
Delivery of Parking/Retail Ground Lease August 31, 2016
(Signed and Accepted by City of Miami)
City Building Phased Foundation Permit 1 BD16-012274-001-B001 September 1, 2016
Miami -Dade WASA Sewer Relocation 2016-SEW-EXT-00041 September 2, 2016
FDOT Utility Relocation Permit 2016-H-690-191 October 3, 2016
City Inspection of Phased Foundation BD16-012274-001-6001 February 28, 2017
City Right -of -Waif Utility Permit EX17-0417 April 26, 2017
(Preliminary Issuance)
Right -of -Way Utility Work Commenced EX17-0417 April 28, 2017
City Building Phased Foundation Permit 2 BD17-002874-001-6001 May 4, 2017
City Inspection of Phased Foundation BD17-002874-001-6001 May 19, 2017
Submitted into the public
record fqr iten} (s)
on ,(-)1 3 b I l'9 . City Clerk
Ortus Engineering, P.A.
INSPECTION REPORT
Client: FLAGSTONE PR Inspection Gate: FEB1 UARY 28, 2017
Project Site Address: 888 MCARTHUR CAUSEWAY Contractor: BOCA DEVELOPMENT
ERiCK MEDINA Permit N°: FOUNDATION PERMIT
Inspector(s): 8D16-012274-001-B001
Site Contact: JON WAINWRIGHT Report N°: 001
Trade:
STRUC
BLDG
BLDG(ROOF)
ELEC
ELEC(LOW)
MECH
PLUMB
TYPE OF INSPECTION PERFORMED:
4N1T1CL'FOtJ'WOATiON ihtSPECTION
AREA/LOCATION INSPECTED:
(Floors, Grid Lines, Col btw FI., Stairs N° btw FL, etc)
F-8 AND C-5 ISOLATED PADS (2) IN TOTAL ON NE CORNER OF PROPERTY AND INITIALED ON APPROVED SET OF
PLANS, SEE PICTURE ATTACHED HERETO
INSPECTION OUTCOME:
nApproved
Partial Approval
nDisapproved- Corrections Required
INSPECTION OBSERVATIONS / REMARKS:
Disapproved- Not Ready
Field Check
N.O.C. and Compaction certifications on file
Erick Medi,n.a, BN # 4898
Inspector Inspector Contractors
Signature Certificate N Representative
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