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HomeMy WebLinkAboutAgenda Item Summary FormJr AGENDA ITEM SUMMARY FORM F€ File ID: #2089 Date: 04/14/2017 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 04/27/2017 District Impacted: District 2 Type: Resolution Subject: Pre -approve - Transfer of Controlling Interest of Bayside Purpose of Item: A Resolution of the City of Miami Commission pre -approving the pending transfer of the controlling interest of Bayside Marketplace, LLC to Bayside Equities, LLC, a subsidiary of Ashkenazy Acquisition Corp., thereby transferring the controlling interest of Bayside Marketplace as expressed in the amended and restated lease agreement dated as of October 15th, 1985 as amended and known as the Retail Lease, and the lease agreement dated January 14th, 1985 as amended and known as the Parking Garage Lease both by and between the City of Miami ("City") as landlord and Bayside Marketplace, LLC as tenant; Providing the City a transfer fee of approximately one million seven hundred ninety six thousand dollars ($1,796,000.00) upon the completion of the transfer. Background of Item: The City of Miami ("City") entered into lease agreements with Bayside Center Limited Partnership on January 14th, 1985 and October 15th, 1985 (the "Leases") to develop a portion of Bayfront Park into a mixed use specialty center and a parking garage now known as Bayside Marketplace. Pursuant to a merger involving General Growth Properties, Inc, Bayside Center Limited Partnership became Bayside Marketplace, LLC. On December 13th, 2016, the City received a letter from General Growth Properties with attachments detailing a pending internal restructuring that will result in a change of control of Bayside Marketplace, LLC. General Growth Properties, Inc and Ashkenazy Acquisition Corp. are requesting the City's approval of the pending transfer of control. The City approves Ashkenazy Acquisition Corp. a/k/a Bayside Equities, LLC as both an Acceptable Operator and an Acceptable Purchaser as defined in the Leases. The pending transfer will result in a transfer fee to be paid to the City in the amount of approximately one million seven hundred ninety six thousand dollars ($1,796,000.00) upon completion of the transfer ("Transfer Fee"). Budget Impact Analysis Item is Related to Revenue Item is NOT funded by Homeland Defense/Neighborhood Improvement Bonds Total Fiscal Impact: Revenue: $1,796,000 Reviewed By Real Estate and Asset Management Aldo Bustamante Office of Management and Budget Christopher M Rose City Manager's Office Alberto N. Parjus City Manager's Office Daniel J. Alfonso Legislative Division Valentin J Alvarez Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Nicole Ewan Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Department Head Review Completed Budget Review Completed Assistant City Manager Review Completed City Manager Review Completed Legislative Division Review Completed Deputy City Attorney Review Completed Approved Form and Correctness Completed Meeting Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed 04/06/2017 9:32 AM 04/09/2017 9:08 AM 04/10/2017 10:41 AM 04/10/2017 8:26 PM 04/18/2017 11:21 AM 04/18/2017 11:41 AM 04/18/2017 7:06 PM 04/27/2017 9:00 AM 05/02/2017 6:02 PM 05/02/2017 6:30 PM 4�CS O/: I! City of Miami ` City Hall * 9fi 11 IM&0Q:AT10 '® Legislation 3500 Pan American Drive Miami, FL 33133 Resolution www.miamigov.com Enactment Number: R-17-0202 File Number: 2089 Final Action Date -4/27/2017 A RESOLUTION OF THE MIAMI CITY COMMISSION APPROVING THE PENDING TRANSFER OF THE CONTROLLING INTEREST OF BAYSIDE MARKETPLACE, LLC ("BAYSIDE MARKETPLACE") TO BAYSIDE EQUITIES, LLC, A SUBSIDIARY OF ASHKENAZY ACQUISITION CORP., THEREBY TRANSFERRING THE CONTROLLING INTEREST OF BAYSIDE MARKETPLACE PURSUANT TO THE RESTATED LEASE AGREEMENT DATED AS OF OCTOBER 15, 1985, AS AMENDED ("RETAIL LEASE"), AND THE LEASE AGREEMENT DATED JANUARY 14, 1985, AS AMENDED ("PARKING GARAGE LEASE"), JOINTLY REFERRED TO AS "LEASES", BOTH BY AND BETWEEN THE CITY OF MIAMI ("CITY"), AS LANDLORD, AND BAYSIDE MARKETPLACE, LLC, AS TENANT, PROVIDING THE CITY A TRANSFER FEE OF APPROXIMATELY ONE MILLION SEVEN HUNDRED NINETY SIX THOUSAND DOLLARS ($1,796,000.00) UPON THE COMPLETION OF THE TRANSFER PURSUANT TO THE LEASES; FURTHER APPROVING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS AND MODIFICATIONS TO THE LEASES, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY TO EFFECTUATE SAID TRANSFER. WHEREAS, the City of Miami ("City") entered lease agreements with Bayside Center Limited Partnership on January 14, 1985 and October 15, 1985 ("Leases") for development of a portion of Bayfront Park into a mixed-use specialty center and a parking garage currently known as Bayside Marketplace; and WHEREAS, pursuant to a merger involving General Growth Properties, Inc. ("GGP"), Bayside Center Limited Partnership became Bayside Marketplace, LLC ("Bayside Marketplace"); and WHEREAS, on December 13, 2016, the City received a letter from GGP with attachments detailing a pending internal restructuring resulting in a change of control of Bayside Marketplace; and WHEREAS, GGP and Ashkenazy Acquisition Corp. have requested the City's approval of the pending transfer of control pursuant to the Leases, as amended; and WHEREAS, the City's Department of Real Estate and Asset Management ("DREAM") approves of Ashkenazy Acquisition Corp., also known as Bayside Equities, LLC, as both an "Acceptable Operator" and an "Acceptable Purchaser" as defined in the Leases, as amended; and WHEREAS, pursuant to DREAM, the pending transfer will result in payment of a transfer fee to the City in the amount of approximately one million seven hundred ninety-six thousand dollars ($1,796,000.00) upon completion of the transfer ("Transfer Fee"); 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. Pursuant to the Leases, as amended, the Commission hereby approves the pending transfer of the controlling interest in Bayside Marketplace to Bayside Equities, LLC, contingent upon the payment of the Transfer Fee. Section 3. Pursuant to the Leases, as amended, the Commission further approves and authorizes the City Manager' to negotiate and execute all necessary documents, including amendments and modifications to the Leases, in a form acceptable to the City Attorney, as may be necessary to effectuate said transfer. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 1 i ria i ndez, City Attor iey 4/18/2017 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.