HomeMy WebLinkAboutLegislation-SUB Memo From City ManagerCITY OF N11A.1*11, FLORIDA
INTER -OFFICE IVI EMORY0 DUNI
TO: Honorable Mayor and Members DATE: July 24, 2017
Of the City Commission
SUBJECT: Substitution for Item RE.6—July 27'h, 2017
agenda
FROM: Daniel J. Alfonso REFERENCES:
City Manager
Department of Real Estate and As an ment ENCLOSURES: Revised Resolution and 2 appraisals
The Office of the City Manager respectfully requests that the following item be substituted in the July 271",
2017 agenda: RE.6 . Charter Amendment for Aligned Bayshore Marina, LLC also known as Monty's. The
main items that have been changed from the original package are as follows:
• Revised Resolution —The Resolution was revised to make minor edits to the ballot language and
to add the future minimum rent of $1,500,000 in order to meet the fair market value requirement
of the charter as determined by 2 appraisals, and the annual $25,000 payment for the Low Income
Housing Renovation Fund.
• Back-up Documentation —The two appraisals from CBRE and Joseph J. 81ake and Associates, Inc.
used to determine the fair market value and meet the requirements of the Charter have been
added as back-up.
Cc: Fernando Casamayor, Chief Financial Officer
Anna Medina, Agenda Coordinator
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File Number: 2585
City Hall
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www.m iamigov.com
Final Action Date;
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
APPROVING, SETTING FORTH AND SUBMITTING TO THE ELECTORATE A
PROPOSED CHARTER AMENDMENT, AMENDING THE CHARTER OF THE
CITY OF MIAMI, FLORIDA, AS AMENDED ("CHARTER"); AMENDING SECTION
29-B OF THE CHARTER, ENTITLED "CITY -OWNED PROPERTY SALE OR
LEASE -GENERALLY", TO AUTHORIZE THE CITY COMMISSION
("COMMISSION") BY A FOUR-FIFTHS (415THS) AFFIRMATIVE VOTE, TO
WAIVE COMPETITIVE BIDDING AND TO EXECUTE A FIFTH AMENDMENT -
("FIFTH AMENDMENT") TO THE LEASE AGREEMENT ("LEASE") BETWEEN
THE CITY OF MIAMI ("CITY") AND ALIGNED BAYSHORE MARINA, LLC, ALSO
KNOWN AS MONTY'S ("BAYSHORE MARINA"), FOR CITY -OWNED
WATERFRONT PROPERTY LOCATED AT 2550 SOUTH BAYSHORE DRIVE, _
MIAMI, FLORIDA ("PROPERTY"), TO EXTEND THE CURRENT LEASE TERM
BY AN ADDITIONAL TERM OF APPROXIMATELY THIRTY-TWO (32) YEARS
(TO EXPIRE MAY 31, 2067), WITH TWO (2) ADDITIONAL TEN (10) YEAR
OPTIONS TO RENEW, FOR A TOTAL TERM OF FIFTY TWO (52) YEARS (TO
EXPIRE MAY 31, 2087); AN ADDITIONAL MINIMUM RENT PAYMENT OF TWO
HUNDRED THOUSAND DOLLARS ($200,000.00) PER LEASE YEAR (A
MINIMUM OF TEN MILLION DOLLARS [$10,000,000.00] OVER THE BASE
TERM OF THE AMENDED LEASE), OR ONE AND THREE QUARTERS
PERCENT (1.75%) OF GROSS RENT RECEIPTS DERIVED FROM THE
PROPERTY, WHICHEVER IS GREATER, AS ADDITIONAL RENT DUE TO THE
CITY, AND COMMENCING JANUARY 1, 2019, MINIMUM ANNUAL TOTAL RENT
(INCLUSIVE OF THE ADDITIONAL MINIMUM RENT) SHALL BE ONE MILLION
FIVE HUNDRED THOUSAND DOLLARS ($1,500,000), PLUS AN ADDITIONAL
TWENTY FIVE THOUSAND DOLLARS ($25,000) TO BE PAID ON AN ANNUAL
BASIS FOR THE FULL AMENDED TERM TO A SPECIAL FUND TO BE
ESTABLISHED BY THE CITY FOR THE BENEFIT OF LOW INCOME HOUSING
RENOVATION; AND SIGNIFICANT CAPITAL IMPROVEMENTS TO THE
PROPERTY OF A MINIMUM OF SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS ($7,500,000.00) TO BE SPENT WITHIN THREE (3) YEARS OF
APPROVAL OF THE FIFTH AMENDMENT BY THE ELECTORATE; THE
CREATION OF A CAPITAL ACCOUNT REQUIRING A MINIMUM ADDITIONAL
INVESTMENT TO THE PROPERTY OF FOUR MILLION DOLLARS
($4,000,000.00) OVER THE FULL AMENDED LEASE TERM, INCLUDING
RENEWAL OPTIONS; IMPLEMENTATION OF A TRANSFER FEE IF THE
PROPERTY IS TRANSFERRED OR ASSIGNED; A REFINANCING FEE,
SHOULD THE PROPERTY BE REFINANCED AFTER THE INITIAL.
REFINANCING; AND PURSUANT TO THE CHARTER SECTION 29-B ENTITLED
"CITY OWNED PROPERTY SALE OR LEASE -GENERALLY," AND SUBPART A,
SECTION 3(F)(I11), ENTITLED "POWERS," TWO (2) INDEPENDENT
APPRAISALS HAVING BEEN OBTAINED BY THE CITY AFFIRMING FAIR
MARKET VALUE OF THE FIFTH AMENDMENT; FURTHER PROVIDING FOR
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CONSENT TO THE RELATED SUBMERGED LANDS LEASE AND WAIVER OF
DEED RESTRICTIONS REQUIRED FROM THE STATE OF FLORIDA; WITH
OTHER RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF
ALL OTHER RIGHTS; CALLING FOR A REFERENDUM SPECIAL ELECTION
AND PROVIDING THAT THE CHARTER AMENDMENT SHALL BE SUBMITTED
TO THE ELECTORATE AT THE REFERENDUM SPECIAL ELECTION TO BE
HELD CONCURRENTLY WITH THE GENERAL MUNICIPAL ELECTION ON
NOVEMBER 7, 2017; DESIGNATING AND APPOINTING THE CITY CLERK
("CLERK") AS THE OFFICIAL REPRESENTATIVE OF THE COMMISSION WITH
RESPECT TO THE USE OF VOTER REGISTRATION BOOKS AND RECORDS;
FURTHER DIRECTING THE CLERK TO CAUSE A CERTIFIED COPY OF THE
HEREIN RESOLUTION TO BE DELIVERED TO THE SUPERVISOR OF
ELECTIONS OF MIAMI-DADE COUNTY, FLORIDA, NOT LESS THAN FORTY-
FIVE (45) DAYS PRIOR TO THE DATE OF SUCH REFERENDUM SPECIAL
ELECTION; PROVIDING AN IMMEDIATE EFFECTIVE DATE FOR THIS
RESOLUTION.
WHEREAS, the City of Miami ("City") is the owner of the waterfront property located at
2550 South Bayshore Drive, Miami, Florida ("Property`); and
WHEREAS, per the Lease Agreement originally dated September 20, 1985, as
supplemented and amended ("Lease"), Aligned Bayshore Marina LLC ("Bayshore Marina"),
currently leases the Property, also known as Monty's, from the City; and
WHEREAS, the City and Bayshore Marina desire to enter into a Fifth Amendment to the
Lease, which will extend the current lease term by an additional term of approximately thirty-two
(32) years (to expire May 31, 2057), with two (2) ten .(10) year options to renew for a total term
of fifty-two (52) years (to expire May 31, 2087); increase minimum rent payment by an additional
two hundred thousand dollars ($200,000.00) per lease year, for a minimum of ten million dollars
($10,000,000.00) over the extended base term of 50 years, or one and three quarters percent
(1,75%) of gross rent receipts from the Property, whichever is greater; provide capital
improvements to the Property of a minimum of seven million five hundred thousand dollars
($7,500,000.00) to be spent within three (3) years of the electorate's approval of the Fifth
Amendment; create a capital account requiring a minimum additional investment on the
Property of four million dollars ($4,000,000.00) over the amended total term, inclusive of the
renewal options; implement a Transfer Fee if the Property is transferred or assigned; and further
implement a Refinancing Fee should the Property be refinanced after the initial refinancing; and
WHEREAS, pursuant to the Charter of the City ("Charter") Section 29-B entitled "City
Owned Property Sale or Lease -Generally", and Subpart A, Section 3(f)(iii), entitled "Powers",
the City has received two (2) independent appraisals affirming the fair market value of the Fifth
Amendment;
WHEREAS, the Fifth Amendment to the Lease with Bayshore Marina will require the
City's consent to the related submerged lands lease and waiver of deed restrictions required
from the State of Florida, with other restrictions, reversions, and retention by the City of all other
rights; and
WHEREAS, the City Commission has determined that the Fifth Amendment to the Lease
will be in the City's best interest; and
City of Miami Page 2 of 8 File ID. 2585 (Revision: A) Printed on: 7/24/2017
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WHEREAS, pursuant to Resolution No. R-17-®322, adopted on July 13, 2017, the City
Attorney was directed to draft the ballot language contained herein;
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. In accordance with the provisions of Section 29-'B of the Charter of the City
of Miami, as amended ("Charter"), and §6.03 of the Miami -Dade County Home Rule Charter, a
Referendum Special Election to be held concurrently with the General Municipal Election is being called
and directed in the City of Miami, Florida, from 7:00 A.M. until 7:00 P.M., on Tuesday, November
7, 2017, including for the purpose of submitting to the qualified electors of the City fortheir approval
or disapproval the proposed Charter Amendment for the Fifth Amendment to the Lease.
Section 3. Section 29-B of the Charter is proposed to be amended in the following
particulars:'
"CHARTER AND CODE OF THE CITY OF MIAMI, FLORIDA
SUBPART A. THE CHARTER
Sec. 29-B. City -owned property sale or lease -Generally.
Notwithstanding any provision to the contrary contained in this Charter or
the City Code, and except as provided below, the city commission is
prohibited from favorably considering any sale or lease of property owned
by the city unless there is a return to the city of fair market value under
such proposed sale or lease. The city commission is also prohibited from
favorably considering any sale or lease of city -owned property unless (a)
there shall have been, prior to the date of the city commission's
consideration of such sale or lease, an advertisement soliciting proposals
for said sale or lease published in a daily newspaper of general paid
circulation in the city, allowing not less than ninety (90) days for the city's
receipt of proposals from prospective purchasers or lessees, said
advertisement to be no less than one-fourth (%4) page and the headline in
the advertisement to be in a type no smaller than 18 -point and, (b) except
as provided below, there shall have been at least three (3) written
proposals received from prospective purchasers or lessees; however, if
there are less than three (3) such proposals received and if the
guaranteed return under the proposal whose acceptance is being
considered is equal to fair market value the city commission determines
that the contemplated sale or lease will be in the city's best interest then,
subject to the approval of a majority of the votes cast by the electorate at
a referendum, the sale or lease may be consummated. In the case of city -
owned property which is not waterfront, when the value of such property
to be sold or leased (individual leaseholds within a single city -owned
1 Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be
added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and
unchanged material.
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property shall not be considered as a single parcel of property for such
valuation purposes) is five hundred thousand dollars ($500,000) or less,
based on an appraisal performed by a state -certified appraiser, the city
commission, by a 4/51hs affirmative vote, may sell or lease said city -owned
property after compliance with the advertisement requirements set forth
above but without the necessity of a referendum.
The above provisions and any other city requirements for competitive bidding
shall not apply when:
(a) conveying property to implement housing programs or projects which are
intended to benefit persons or households with low and/or moderate income,
the criteria of which to be provided for by federal and/or state law or by the
city commission;
(b) conveying property to implement projects authorized under the Florida
Community Redevelopment Act of 1959, as amended;
(c) conveying property to implement projects of any governmental agency or
instrumentality;
(d) disposing of property acquired as a result of foreclosure;
(e) disposing of property acquired in connection with delinquent taxes which
properties were conveyed to the city by the Miami -Dade board of county
commissioners under the provisions of Section 197.592 Florida Statutes, as
amended; and
(i} disposing of non -waterfront property to the owner of an adjacent property
when the subject property is 7,500 square feet or less or the subject non -
waterfront ,property is non -buildable.
Notwithstanding anything herein to the contrary, the city commission, by a 4/5ths
affirmative vote, may:
(a) grant a lessee of city -owned property a one-time extension during the last five
years of its lease, without the necessity of a referendum, for the purpose of
funding additional capital improvements. The extended term shall not exceed
twenty-five percent of the original term or ten years, whichever is less. The
granting of such an extension is subject to the lessee paying fair market rent
as determined by the city at the time of such extension and not being in
default of its lease with the city nor in arrearage of any monies due the city;
and
(b) amend the Lease Agreement between the City of Miami and Biscayne Bay
Restaurant Corp., d/b/a Rusty Pelican, dated February 13, 1970, as
amended, to (i) extend the lease for an additional term of fifteen (15) years,
with the option to renew for two (2) additional five (5) year periods, (ii)
increase the amount of the minimum guarantee to the City to at least
$350,000 per lease year effective upon execution of the lease amendment,
and (iii) require Rusty Pelican to complete capital improvements to the
property, including a public baywalk, in the amount of not less than $3 Million,
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within twenty-four (24) months of the effective date of the lease amendment;
and
(c) waive competitive bidding and execute a lease with Dade Heritage Trust, Inc.
for the City -owned building located at 190 Southeast 12th Terrace, for a term
of thirty (30) years, with two (2) thirty (30) year renewals, for minimum annual
rent of $600,00 with Consumer Price Index adjustments, with restrictions,
reversions, and retention by the City of all other rights. -Land
d waive competitive bidding and execute a Fifth Amendment to the Lease
Agreement with Aligned Ba shore Marina LLC also known as Mont 's, to
extend the current lease term by an additional term of approximately thirtV-
two 32 ears to expire May 31 2067 with two 2 ten 10 ear options to
renew for a total term of fifty-two 52 ears to expire May 31 2087 • which
will increase minimum rent payment by an additional two hundred thousand
dollars ($200,000,00) Ler lease ear for a minimum of ten million dollars
10,000,000.00) over the extended base term of fifty 50 ears or one and
three quarters percent 1.75% of gross rent receipts from the Property,
whichever is greater, as additional rent due the Cit further providing capital
improvements to the Prooerty of a minimum of seven million five hundred
thousand dollars ($7,500,000.00) to be spent within three (3) years of the
electorate's approval of the Fifth Amendment to the Lease Agreement: further
creating a capital account requiring a minimum additional investment to the
Prope rtof four million dollars 00Q 000.00 over the amended total term
inclusive of the renewal options; implementing a Transfer Fee if the Property
is transferred or assigned; and further implementing a Refinancing Fee
should the Property be refinanced after the initial ref inancin ursuant to the
Charter of the Cit "Charter" Section 29-B entitled "CitV Owned Property
Sale c Lease -Generali " and Sub art A Section 3 i ip, entitled "Powers"
the City has received two (2) independent appraisals affirming the fair market
value of the Fifth Amendment; further acknowledging the City's consent to the
related submerged lands lease and waiver of deed restrictions required from
the State of Florida, with other restrictions, reversions and retention by the
City of all other rights.
Notwithstanding anything in this Charter to the contrary, the City may enter into
leases or management agreements, for any City -owned submerged lands, with
entities having a possessory or ownership interest in the abutting riparian
uplands for building marinas, docks or like facilities, using methods adopted by
ordinance on the condition that such leases or management agreements result in
a return to the City of at least fair market value."
Section 4. The Referendum Special Election shall be held at the voting places in the
precincts designated, all as shown on the list attached hereto and made a part hereof and
referred to as Exhibit No. 1 or as may be designated by the Supervisor of Elections of Miami -
Dade County, Florida, in conformity with the provisions of the general laws of the State of Florida
("State'), The Precinct Election Clerks and Inspectors to serve at said polling places on said
Referendum Special Election date shall be those designated by the Supervisor of Elections of
Miami -Dade County, Florida, for such purpose in accordance with the general laws of the
State. A description of the registration books and records which pertain to Referendum Special
Election precincts wholly or partly within the City and which the City is adopting and desires to
use for holding such Referendum Special Election is all registration cards, books, records and
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certificates pertaining to electors of the City and established and maintained as official by the
Supervisor of Elections of Miami -Dade County, Florida, in conformity with the provisions of the general
laws of the State, are hereby adopted and declared to be, and shall hereafter be recognized and
accepted as, offrcial registration cards, books, records and certificates of the City.
Section 5. In compliance with Section 100.342, Florida Statutes (2016), regarding any
Referendum Special Election not otherwise provided for there shall be at least thirty (30) days'
notice of the Referendum Special Election by publication in a newspaper of general circulation
in the City. The City Clerk is authorized and directed to publish notice of the adoption of this
Resolution and of the provisions hereof, at least twice, once in the fifth week and once in the third
week prior to the week in which the aforesaid Referendum Special Election is to be held, in
newspaper(s) of general circulation in the City which notice shall be substantially in the following
form:
"NOTICE OF REFERENDUM SPECIAL ELECTION
TO AMEND THE MIAMI CITY CHARTER TO BE HELD ON
TUESDAY, NOVEMBER 7, 2417
IN THE CITY OF MIAMI, FLORIDA
PURSUANT TO RESOLUTION NO.
A Referendum Special Election will be held on Tuesday, November 7, 2017 from
7:00 A.M. until 7:00 P.M. in the City of Miami, Florida, at the polling places in
the several Referendum Special Election precincts designated by the Board of
County Commissioners of Miami -Dade County, Florida, as set forth herein,
unless otherwise provided by law, and submitting to the qualified electors of the
City of Miami, Florida, the following question:
"Shall the City's Charter be amended to extend Aligned Bayshore Marina, LLC
(Monty's) Lease, for an additional 52 years, waiving competitive bidding by 4l5ths
affirmative vote; Monty's to pay City $10,000,000.00 more of additional rent, or
1.75% more of gross revenue, whichever is greater over base term, but no less
than $1,500,000.00 of total annual rent; plus $7,500,000.00 of improvements
including new marina addressing sea level rise and additionally, $4,000,000.00 of
improvements over total term?"
This Charter Amendment will amend Section 29-B of the Miami Charter to
authorize the City Commission by a four-fifths (415ths) affirmative vote, waive
competitive bidding and execute the Fifth Amendment to the Lease with Aligned
Bayshore Marina, LLC, also known as Monty's, for an additional total term of 52
years, for City waterfront property at 2550 South Bayshore Drive, for the greater
of additional minimum total rent of $10,000,000.00 or one and three quarters
percent (1,75%) of gross property rent over the initial 32 year term;
$7,500,000.00 of capital improvements; a minimum $4,000,000.00 capital
account over the total term, and transfer and refinancing fees.
By order of the Commission of the City of Miami, Florida.
City Clerk
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A list of City of Miami polling places follows:
(Insert list of City of Miami Rolling Places.)
FOR AMENDMENT
AGAINST AMENDMENT
Enactment Number;
Section 6. The official ballot to be used at said Referendum Special Election shall be in full
compliance with the laws of the State with respect to absentee ballots and to the use of the mechanical
voting machines or the Computer Election System, and shall be in substantially the following form,
to wit:
"Official Ballot"
Referendum Special Election
Tuesday, November 7, 2017
for Approval or Disapproval of the following question:
Proposed Charter Amendment allowing Aligned Bayshore (Monty's)
a Lease extension providing additional rent and investments.
"Shall the City's Charter be amended to
extend Aligned Bayshore Marina, LLC
(Monty's) Lease, for an additional 52 years,
waiving competitive bidding by 4/5ths
affirmative vote; Monty's to pay City
$10,000,000.00 more of additional rent, or
1.75% more of gross revenue, whichever is
greater over base term, but no less than
$1,500,000.04 of total annual rent; plus
$7,500,000.00 of improvements including
new marina addressing sea level rise and
additionally, $4,000,000.00 of improvements
over total term?"
FOR AMENDMENT
AGAINST AMENDMENT
Section 7. The form of the ballot shall be in accordance with requirements of general
election laws. Electors desiring to vote in approval of the Question described above shall be
instructed to vote their selection next to the word "FOR AMENDMENT" within the ballot
containing the statement relating to the Question. Electors desiring to vote to disapprove the
Question shall be instructed to vote their selection next to the word "AGAINST AMENDMENT`
within the ballot containing the statement relating to the Question. Once individuals are satisfied
with their choice, they shall press the "Vote" button and the ballot shall be cast.
City of Miami Page 7 of 8 File ID: 2565 (Revision; A) Printed on: 712412017
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Section 8. The City Clerk shall cause to be prepared absentee ballots containing the
Question set forth in Section 6 above for the use of absentee electors entitled to cast such
ballots in said Referendum Special Election.
Section 9. All qualified electors of said City shall be permitted to vote in said
Referendum Special Election and the Supervisor of Elections of Miami -Dade County, Florida, is
hereby requested, authorized, and directed to furnish, at the cost and expense of the City, a list of all
qualified electors residing in the City as shown by the registration books and records of the Office of
said Supervisor of Elections and duly certify the same for delivery to and for use by the election
officials designated to serve at the respective polling places in said general election precincts.
Section 10. For the purpose of enabling persons to register who are qualified to vote in
said Referendum Special Election to be held concurrently with the General Municipal Election on
Tuesday, November 7, 2017, and who have not registered under the provisions of the general
laws of the State and Chapter 16 of the Code of the City of Miami, Florida, or who have transferred
their legal residence from one voting precinct to another in the City, they may register Monday
through Friday, from 8:00 A. M. to 5:00 P.M. at the Miami -Dade County Elections Department
located at 2700 Northwest 8711 Avenue, Doral, Florida, within such period of time as may be
designated by the Supervisor of Elections of Miami -Dade County, Florida. In addition to the above
place and times, qualified ;persons may register at such branch offices and may also use any
mobile registration van for the purpose of registration in order to vote in the herein described
Referendum Special Election during such times and on such dates as may be designated by the
Supervisor of Elections of Miami -Dade County, Fiorida.
Section 11. Todd B. Hannon, the City Cleric of the City of Miami, Florida, or his duly
appointed successor, is hereby designated and appointed as the official representative of the
Commission of the City of Miami, Florida, in all transactions with the Supervisor of Elections of
Miami -Dade County, Florida, related to matters pertaining to the use of the registration books
and the holding of said Referendum Special Election.
Section 12, The City Clerk shall deliver a certified copy of this Resolution to the
Supervisor of Elections of Miami -Dade County, Florida, not less than forty-five (45) days prior
to the date of the Referendum Special Election.
Section 13. This Resolution shall become effective immediately upon its adoption
and signature of the Mayor.'
APPROVED AS TO FORM AND CORRECTNESS:
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 shalt become effective
immedlately upon override of the veto by the City Commission..
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