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HomeMy WebLinkAboutItem #21 - Discussion Itema G;TY '2F li4A`.!I, F I,GRICA r1T R-C.;i'F-1Cu ; !EN10;;APNDuM -o: Mayor and Members of the City ommiss' Joseph R. rassie City Manager June 21, 108 Miamarina and Dinner key Marina Proposals In preparation for your Public Hearing tomorrow, we have compiled for you all of the proposal documents for each of the following proposals: Miamarina 1. Biscayne Recreation Development Company .'yf`rt 2. Ecclestone Management Company v .4? 3. New World Marina Incorporated Dinner Key Marina 1. Biscayne Recreation Development Company 2. Dinner Key Marina Incorporated 3. Ecclestone Management Company l7 i�ifYtrK� / • �.3nrstrr�«�' �r /.. ,` -pe These represent the three top proposals for each of the two marinas. Please let me know if you need any additional information. firm 21 INNER ICIEY MAR,LLNA• lib inc. 2071 So. I3tic shotc Drive. I;-11 Comm, Grow. Florida Jutie 21, 1978 Mr. Joseph R. Grassie City Manager City of Miami Miami, Florida bear Mr. Grassier The proposal we submitted to the City on March 31, 1978 for the redevelopment of marina facilities at Dinner Key was divided into two parts, a marine portion and a landside portion, as per the attached extract from the proposal. Because of the strong reaction from the community against the concepts advanced on the landside part, specifically the hotel and shopping promenade, we have decided to withdraw that portion of the proposal. The portion withdrawn is "Part Two Landside" attached. The remaining portion of the proposal we intend to submit to the Commission and the public at the scheduled hearing tomorrow. This will include all of the elements listed in "Part One - Marine". The financing of Part One was in no way dependent on the financing or development of Part Two, and we are ready, willing and able to proceed forthwith on Part One, either in its entirety, or in those portions which the Commission selects. ncerely ►ours Spencer B. Meredith President II II 0 at 0 0 A al d A Al s A '0 0 S A L Ill�tltl 111 iiiil9liliVYIIVI� Mh ilhf�'ll iiiiiIIiIiIII iiiiI 11 1111 COMPARATIVE OVERVIEW OF MIAMARINA LEASE PROPOSALS RATES PROPOSED LENGTH OF LEASE OTHER PROPOSER : I BISCAYNE RECREATION DEVELOPMENT COMPANY' Paul Balker. *residentseat/month-stghtseetng James Sprague. JamesS) MANE BARRIER hot mentioned in proposal. PHYSICAL IMPROVEMENT Additional Equipment and utility Provisions OTHER IMPROVEMENTS Additional landscaping and extensive clean-up of the area. FINANCIAL PLEDGE Min: 3150,000 or 31.51 of gross receipts. $.15 per ft/day liveaboard $.10 er ft/day tfveaboa $90.00 charter fishing vessel . $185.00 drift vessel vessel . $2.20 $95.00/ charter sail - 30 years. Extensive promotion and advertising of marina• Nice -President — boats $120.00/ charter __ DINNER AIN MARINA INC Study surge and wave Replace wood tinder Landscaping walkway from deck to Post -construction 25% of income at piers D.E.F.G. Consistent with those proposed for Dinner 30 years. Improvements are estimated to Cost Spencer Meredith, *resident J.Richard Bell. Nice -President action problem. If breakwater will solve problem construct 1t in accord with requirements of the regulatory agencies. piers with concrete piers. Replace exist- ing electric utility boxes. Construct a parking deck over the .peninsula. loll equipment for parking. parking restaurant. pledge available for distil- button (as In O.K. Proposal). Minimum rental to be negotiated. Key. 5676,000 not Includ. Ing cost of a surge barrier. Financed with Revenue Bond. tccitslONE MANAGEMENT Not mentioned in None aenttoned Min: $50.000 Plus: 25% gross rents y Not mentioned in. ,proposal. • 30 years. Conditions: City None mentioned t� specifically. e 20HPANY :proposal. specifically. income $300.000 - provide parking E.L. Ecdestone. President �.OoO'Norrts, Vice President $400.000 Plus: 301 gross rental income over $400.000. without meters. City maintain parking areas. d ty to provide insurance other than liability. MIAMARINA To engineer and lnstal1) To engineer and instal To improve the flow of Min: $52.500 or 151 receipts. Not mentioned in 15 years with 2/15 year Option) To keep up with latest techniques 'MAN G RENT INC. an acceptable solution 4 holding tank sewage water through the thereby lmprov- of gross proposal. in marina management. Stanley Pace, President Darwin Pace. 'Secretary to the existing wave action and surge .problem. pump out facility. Construct more efficient dock office. Boaters supply facillt basin. Ing the cleanliness and reducing the pollu• tlon of the water. MiAMI MARINA -�aD ooNTTosPoaAT1oN1 t,Not mentioned In proposal. Not mentioned in proposal. Marketing activities expanded by promotion Min: $51,000 or 15.7% of first $325,000 and Not mentioned in proposal. 5 years lease with 5/1 year automatic renewals. After Computerize Mtamartna finances. Bring northern personnel Gerald Berton. President ' lichen Berton, Nice President JJ and encouragement of Northern transients of berth at MIamarina. 50% of the excess over a base of $325.000. The $325.000 base 1s conpouoded 10%/year. 10 years - option. during the season- *Ea/WORLD-MARINA INC. Not mentioned in L Fuel dock, ship stores. Beautification includ- Mtn: $10.500 or 10.51 Not mentioned to 20 years lease with 20 years option. Improve and enlarge fishing and charter Gladys Dubbin. -President Dorothy Dubbin. Secretary/Treasurer Irvin Stepheng, Adainlstrator proposal. laundry. Increase 1 of transient and permanent boat slips. Remodel and enlarge dock office.securlty. :Provide a pop out service for newly Coast Guard required marina sanitation ing painting and a continual basin clean- ing operation. More Marine shuttle service to serve downtown. Watson Islandand Dade. Participation in pedal events and of gross receipts. up to $150.000 151 i between $750.000 - $1.000,000 and 201 over $1.000.000. proposal. boat services. Encourage civic, educational and youth groups to utilize the marina facility. services. celebrations. 'RUSSELL PROP. INC. Traffic control office possible installation Clean rest rooms. Min: 324.000 or 30% Not mentioned in 10 years lease with 2/5 options. Tax payments. 1f assessed would be Jack Russell 7rving,Resnick at N.W. corner of leased property. Annual piling repair and replacement program. of a wave barrier system which we feel would have a high probability of success. Ile satisfying environmental consider ations. Maintain piers structures and services In good condittons. of gross receipts and 15s of gross receipts over $335.000. is gross receipts over $335.000. proposal. year deducted from proceeds of the lease payments. i�ont fazes center 300 Biscayne Boulevard Way, Miami, Florida 3313I June 22, 1978 New World Marinas, Inc. 25 West Flagle r Street Miami, Florida 33130 Gentlemen: AtiNA Tel. (305) 358-2541 The Dupont Plaza Hotel is pleased to learn that the New World Marinas, Inc. is being considered as lessees for the Miamimarina. We are prepared to offer our facilities as an adjunct to the Marinas so as to increase the Marina's overall desirability to the boater and the public. JSS:mm • Sincerely, DUPONT PLAZA HOTEL kip' Shepard Executi Vice President and "� General Manager ) - V TO THE HONORAELE MAYOR and CITY COMMISSION of the CITY OF MIAMI, tli3RIDAt Please be advised that we, the undersigned combercial fishing boat OWners and operators, and sightseeing boat owners and operators, endorse the leasing of MIAMARINA to NEW WORLD MARINAS, INC.. We further wholeheartedly support NEW WORLD MARINAS' proposal to enhance the commercial fishing and sightseeing services offered at MIAMARINA and to aggressively advertise these important recreational facilities to the public. Moreover, we are delighted with NEW WORLD MARINAS' proposal for the beautification and upgrading of the MINIMUM into a full service marina, and for their proposed hotel shuttle service. We also support the fact that NEW WORLD MARINAS, INC., is not requesting a rate increase for any marina tenants. ) r ctr ) ) ..• .. .. r .z. ".....--....t.. •-N act' / // • • (a) \ \ \\I - MEM • 'IN I I I I ..,,,,,q*t._ . „„ogfltiotttf,, $kiint, I P`'-`••••••"40i- . - III k•1'• '.0;;?,..1•7;:il't,l'I4 — kr; . .4 4A4t .4tt. ...',,, ; , '!.., V; Azigy..3e.. 3 , J.,. 4..' .k. -ii:esssi..&lit.....••,..y. • ...,.... r: : ..' ' ; 7. .., :. ' :: :;,:1 •Xf;•,‘*.,.„..,'; , , — ille,:i .. 'A' ::•1/4...4;.•.•...,!,..-:,,.. il':.4•04.kW4i '4: i ,if•,,+;,i: • „, . , V. , •;;,..4':, e::4',:...„`:•,.. i',‘ ' '.-. F J., ...t'itts 1'4°. ,..1'• ' - • ' - ' ' k.- y • i ,-,•...;:.;,;',..1.-ii .r.:.,.::,..,'.;,..,,..-.,t1,-.;,-...--ic..-c. • . -, . -.• ;7' ",..'1,r-tlfr,,?= 4., • , rilimw*rrelywe."'erft‘tar",,T4r*,0"'„?0';',1"r"'„,, , • •,; 1":„V't - 7 -4. ••• • • . • • • , • • vfdi..•:;:o.Atl,,?.,-kyoarO444 • e . • • • " ", • •' rt404..„ • Irk . • •• , • ig,044 ig•A% it-. , • '!• t6,4214.''d44 .k• ••**47/e.4140.7"*,i,VCir,7,./:',' • • • - - • • -?"-^ „ - • • ; • • ' .;•'..4,t,,,t1/71„iV.. • • 14071-!•/•'sfrs.-4.-. A., • 4., • - - • , .4-1.0.0.11.*14fxr'•;" •• .• , .. • . • . • A • is4 • .,„- • , - • • • . • .= • ta. •,•••••• '•—••;!:4;3r - • 04.4114r,z,*. ' s•rr.::{P,41;:'*Ar.,/,e,rof :r „. • . • ' Nav Wb12LD MA.Fg._NAS 3NC. AMtliDAt A The following represents an outline of proposed points in the fiainteiiance, operation and development of Miamari.na that the proposers Would like to implement consistent with the City's wishes. These proposals will be elaborated on at a presentation before the City Commission, 1: Beautification program to include repair, painting and a continual basin cleaning operation. 2: Development program designed to provide full service marina facilities including, but not limited to, fuel dock, ship stores, laundry, information center and telephone, mail and message services. 3: Program to increase number of transient and permanent boat slips. 4: Remodel and enlarge dock office possibly to include a second floor for maximum management view of the marina and better security. 5: Provide facilities for a marina shuttle and taxi service to serve Watson Island, downtown Miami and Dade County. 6: Enhance the marina security by augmenting it with a security service and new security equipment. 7: Institute an aggressive promotional and advertising program. 8: Implement financial control systems utilizing public accountants and strict control procedures. 9: Develop small boat launching facilities. 10: Staff with competent, qualified, responsible personnel. 11: Expand Civic use of facility by partiCipating in City and County programs# special events and celebrations. 12: tnhance physical plant maintenance program to preserVe the marina properly. 13: Manage Watson Island Marina pending its replacemnt. 14: Provide a pump out service for newly Coast Guard required marine sanitation services. 15. Install a wave barrier to reduce the rough water in the marina. ADDENDUM 13 NEW WOF i MAMAS, INC., proposes to develop, operate and maintain a MIAMAIIIMA as one of the finest landmark marinas in the world. The proposers are dedicated to developing a beautiful, exciting and useful attraction for the entire community. It is their belief that the marina can be managed so as to be an important tourist attraction and a spot for relaxation and rejuvenation of downtown workers, as well as a useful and much needed marina facility for residents of the City and County. Zb reach this goal the proposers are desirous of operating the marina so as to: 1: Preserve and enhance its physical structure and insure the marina's worth to its community. 2: Provide a full service marina to benefit boaters of all types fran the small boatman to the transient yachters. 3: Expand the number of slips to accommodate more permanent and transient vessel berthing and maintain reasonable dockage rates befitting a municipal marina. 4: Work with local shipyards and associated marine industries to encourage touring boaters to utilize Miami facilities for repairs and equip- ment purchases. 5: Advertise this unique facility throughout the boating world to encourage yachtsmen to make Miami one of their Ports -of --Call. 6: Work with the Parks Department to support special events in New World Park and join with the City and County in special projects and celebrations. 7: Improve and enlarge Charter and sport -fishing boat services. 8 : provide the City a maximum return cn its investment, it, 5: gi burage civic, educational, arfd youth groups to utili2e the marina facilities. 10: Actively participate with local marina organizations to en- courage the marina industry in Dade County as one of the most important segments of the Miarni economy. LAW OFFICES DtJ3t3DD4 ScltttF, ttlaxMkg & Dut ttI r 444 E3RICKELL AVENUE MIA1.II# •Lorin 331a1 1000 R1VERGATE PLA2A June 22, 1978 Biscayne Recreation Development Company Dadeland Professional Building 9655 South Dixie Highway Miami, Florida 33156 Re: Lease of Dinner Key Marina with the City of Miami. (Our File No. 19170) Gentlemen: TELEPHONE (a4) 3j3606 This Memorandum of Law is submitted pursuant to your request and expresses our opinion as to several questions of law that had been raised from time -to -time relative to your proposed lease of the Dinner Key Marina and Miamarina from the City of Miami. This Memorandum also addresses itself to questions raised by Mr. Norman S. Segall in two separate letters prepared by him on file with the Application of Grove Key Marina, Inc. All emphasis will be supplied unless otherwise indicated. The fundamental question raised by Mr. Segall's two opinion letters dated December 15, 1977 and March 28, 1978, is as follows: WHETHER A LEASE BETWEEN THE CITY OF MIAMI AND A PRIVATE CORPORATION FOR MANAGE- MENT OF A PUBLIC FACILITY SUCH AS THE DINNER KEY MARINA DOCKS, MOORING AREAS AND MARINE RECREATION FACILITIES CONSTITUTE A PUBLIC PURPOSE. ANSWER: YES. OPINION As set forth in Mr. Segall's letter dated December 15, 1977, the issue being raised is whether a lense or contract by the City with a private corporation will trigger a reverter clause in the deed from the Trustees of the Internal Improvement Fund of the State of Florida, dated February 24, 1949. The reverter clause in the said deed provides that the "bay bottom" at the Dinner Key Marina shall never be sold, conveyed or leased to a private person or firm for a private use or purpose as opposed to a public or municipal purpose. MC- Mr- Wa- In his two letter opinions, Mr. Segall first implies that the reverter provision might be triggered because the lease of the Dinner Key Marina facilities to a private corporation would not constitute a "public purpose," Secondly, Mr. Segall states that a different form of arrangement, such as a management agreement with the City, might circumvent the restriction in the deed forbidding a sale, conveyance or lease of the property, We strongly disagree with the conclusions of Mr. Segall in his letters. In the first place, it is quite clear that the lease of the Dinner Key Marina property to a private corporation would properly be deemed as a "public purpose." Indeed, in his letter of March 28, 1978, Mr. Segall seems to concede that the lease arrangement of a "port facility" clearly constitutes a public purpose. Mr. Segall states, at the bottom of page 1 and carrying over to page 2, the following: "In construing similar circumstances, the courts have been concerned that the contem- plated transaction does not result in the use of the governmental entity's taxing power or credit to a private corporation in violation of Article VII, Section 10 and 11, Fla. Const. (1968). However, Section 10(c) specifically contemplates the operation by a private corporation of a 'port facility' financed or refinanced by revenue bonds pursuant to contract with the issuing body. So long as the project itself is a proper public purpose, incidental gain to a private corporation through a contract to operate all or part of the facility does not violate this constitutional pros- cription.... "The ability of a municipality to contract with a private corporation for the operation of a public facility is well established, both in practice and in law...." Numerous cases, in addition to Section 10(c) of Article VII of the Florida Constitution, support the public purpose of the operation of a leasehold marina by a private company. See, Panama City v. State, 93 -2- So,2d 608 (Fla. 1957) Sunny Isles Fishing Pier v. Dade County, 79 Sor2d 667 (Fla, 1955); Hanna v, Sunrise Recreation, 94 So,2d 597 (Fla, 1957), In Hanna v Sunrise Recreation, the Florida Supreme Court considered a case involving the Hugh Taylor Birch State Park, There was a deed which provided that the lands conveyed to the State of Florida could be used "for State Park purposes only, for the use, benefit and enjoyment of the public forever." Portions of the park were leased by the Florida Board of Parks and Historic Memorials to private lessees to operate certain recreational facilities. The issue before the Supreme Court involved the authority of the Board to enter into such leases in light of the provision in the deed. The Supreme Court held that the private leasehold of recreational facilities constituted a park or public purpose and that the Board had the authority to enter into the leases. The Court stated: "The fact that charges will,be made for the use of the facilities and that a private corporation will profit there- from are not controlling. The Board is authorized by statute...to make charges to the public who use the facilities of the park. And we have held that the fact that a private corporation or individual will inci- dentally profit from the transaction does not in itself defeat a public purpose. (Citations omitted)" Similarly, the Supreme Court in Sunny Isles Fishing Pier v. Dade County, supra, held that a fishing pier operated privately at Baker's Haulover in Dade County constituted a public purpose. Mr. Segall, at page 5 of his letter of December 15, 1977, states that, "Unquestionably the Florida Supreme Court is taking a more restrictive view as to what constitutes a public purpose...." He then -3 cites two cases, Williams, Jones, 326 So,2d 425 (Fla, 1976) and Volusia County v.,_Daytona BeachRacing District, 341 So,2d 498 (Fla, 1976), Both of these opinions involve a question of an exemption from taxation by private parties who claimed that their property was being used for a public purpose and was thereby exempt from taxation. The Court noted in both cases that tax exemptions are strictly construed against the party claiming them. In Williams v. Jones, supra, the property sought to be taxed consisted of both commercial and residential leasehold interests on county -owned property from the Santa Rosa Island Authority. These commercial operations included barber shops, plumbing businesses, beauty shops, laundries, rental cottages or rental units, motels, restaurants and campgrounds. In other words, the dominant use of the property was clearly private in nature and not public. In Volusia County v. Daytona Beach Racing District, supra, the Court considered an effort by the Volusia County Tax Assessor to assess city -owned land which was used as a speedway and race track. There was a specific special act of the Legislature which removed the tax exemption on this property. These two cases simply do not indicate that the Florida Supreme Court is taking a "more restrictive view" as to what constitutes a public purpose. The Supreme Court is taking a traditional view of closely scrutinizing whether a particular public interest supporting the use of public funds dominates private gain and therefore can be considered a "public purpose." See, Baycol, Inc. v. Downtown Development Authority, 315 So.2d 451 (Fla. 1975); Hertz Corporation v. Walden, 299 So.2d 121 (Fla. 2d DCA 1974), affirmed, 320 So.2d 385 (Fla. 1975). In both Williams v. Jones and Volusia County v. Daytona Beach -4- Racing District, supra, the Supreme Court construed Section 196,199(2)(a), Florida Statutes (1975), which relates to taxation of leasehold interests and reads as follows: "(2) Property owned by the following governmental units but used by non- governmental lessees shall only be exempt from taxation under the following conditions: (a) Leasehold interests in property of the United States, of the state or any of its several political subdivisions, or of municipalities, agencies, authori- ties and other public bodies corporate of the state shall be exempt from ad valorem taxation only when the lessee serves or performs a governmental, municipal, or public purpose or function, as defined in Sec. 196.012(5)...." Thus, by statute, the Florida Legislature has indicated its intent to strictly limit tax exemptions by nongovernmental lessees which lease property owned by a public body. It is interesting to note the definition of governmental, municipal or public purpose or function, as set forth in Section 196.012(5), which is referred to in the statute above. That definition reads as follows: "(5) Governmental, municipal, or public purpose or function shall be deemed to be served or performed when the lessee under any leasehold interest created in property of the United States, the state or any of its political subdivisions, or any municipality, agency, authority, or other public body corporate of the state, is demonstrated to perform a function or serve a governmental purpose which could properly be performed or served by an appropriate governmental unit, or which is demonstrated to perform a function or serve a purpose which would otherwise be a valid subject for the allocation of public funds...." Under this definition of a governmental or public purpose, the -5- lease of property at Dinner Key Marina would qualify for a tax exemption as a legitimate governmental purpose which properly could be performed by the City of Miami and which is certainly appropriate for the allocation of public funds. In short, the question of a public use or private use still turns on the particular facts and circumstances of each case. It is clear to us that the facts of this case involving the leasehold of a port or marina'facility at Dinner Key constitutes a public use pursuant to the cases cited hereinabove, as well as Article VII, Section 10(c) of the Florida Constitution. Even assuming that Mr. Segall were correct in his assessment that the leasing of the Dinner Key facility would constitute a private use (which he is not), it is disingenuous to suggest that simply by changing the form of the business arrangement between the City of Miami and a private corporation the reverter provision of the deed from the Trustees of the Internal Improvement Fund will be circumvented. A private use by means of a management agreement similarly would trigger the reverter provision in the deed just as would a leasehold use for private purposes. The deed from the Trustees of the Internal Improvement Fund provides that in addition to a reverter for the sale, conveyance, or lease of the "bay bottom" to a private person for a private use, the said property also shall revert if the City gives or grants any "license or permit" to any private person, firm or corporation for any private use or purpose. Mr. Segall, at page 5 and 6 of his letter of December 15, 1977, suggests that a management contract with the City would circumvent these reverter problems, apparently because no property interest would be -6- granted by the City, and states as follows: ".,.Since construction on the premises would then be in the name of the City as owner; licenses and permits for such construction would not be granted to private persons; firms or corporations as also proscribed." This assertion is incorrect, A license in real property is defined as a personal; and ordinarily revocable, unassignable privilege conferred either by writing or parol to do one or more acts on land, without possessing any interest in the land, Thus, a license in real property is a mere permit to do something on the land of another; and does not imply an interest,in land. See generally, 11 Fla, Jur., Easements and Licenses, Section 2, at page 222. It is clear that the deed from the Internal Improvement Fund proscribes private uses of the "bay bottom" property whether or not an actual interest in the land is conveyed. Therefore, even though a management contract might not convey an actual interest in the "bay bottom" land, there is no question that the City would be licensing the use of such land to a private firm or corporation for a private use in violation of the reverter clause. Therefore, the reverter clause would be triggered automatically. In sum, the fundamental problem raised by the reverter clause in the deed simply cannot be circumvented by an arrangement which applies "form over substance." The substantial issue still is whether or not the use of the Dinner Key Marina is a private purpose or a public purpose. Additionally, we would point out that the City has advertised for bidders with respect to the Dinner Key Marina seeking to lease the property. The City may not now deviate from the advertised terms of the bidding process because such a deviation might destroy the competitive -7- character of the bidding process and work as an advantage or benefit to one bidder which is not enjoyed by other parties who are bidding for the lease contract of the Dinner Key Marina property. See, Harry pepper & Associates _v._City of Cape Coral, 352 So.2d 1190 (Fla. 2d DCA 1977) CONCLUSION A lease of the Dinner Key Marina property to a private firm or corporation would be incidental to the main public purpose of the project and would not trigger a reverter clause in the deed. Also, a management contract between the City of Miami and a potential bidder for the Dinner Key Marina project would do nothing to avoid triggering the reverter clause, assuming that the use of the marina property may be construed to be a private use as opposed to a public use. Respectfully submitted, DUBBIN, SCHIFF, BERKMAN & DUBBIN 1000 Rivergate Plaza 444 Brickell Avenue Miami, Florida 33131 Telephone No. (305) 373-3606 By: / [/%r % !,/ /A! //� MURRA ' UBBI1;1 ' l/ By: C� EVAN LANGBEIN -8-