HomeMy WebLinkAboutAttachment A (SUB)TO: Emilio T. Gonzalez, Ph. D.
City Manager
FROM: Daniel Rotenberg
Director
Department of Real Estate and
Asset Management
BACKGROUND
THIS DOCUMENT IS A SUBSTITUTION TO
ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT
END OF THIS DOCUMENT.
C:1TY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
DATE: June 20, 2018
SUBJECT: Conveyance of Wagner Square Properties at
approximately 1455 NW 17 Street
REFERENCES:
ENCLOSURES:
On March 10, 2005, the City of Miami ("City") conveyed to Wagner Square, LLC ("Wagner Square") three
(3) separate parcels of real property formerly known as the Civic Center Site and later known as Wagner
Square located at approximately 1431 Northwest 17 Street, 1405-07 Northwest 17 Street, and 1700
Northwest 14 Avenue, Miami, Florida (collectively, "Original Properties") pursuant to a Purchase and Sale
Agreement dated May 30, 2003, as amended ("Agreement"). On September 21, 2012, the United States
of America, Department of Veterans Affairs ("VA") acquired one (1) parcel of the Original Properties
located at 1455 Northwest 17 Street (F/K/A 1700 Northwest 14 Avenue) from the City through a Special
Warranty Deed recorded in Official Records Book 28289, Page 2750 of the Public Records of Miami -Dade
County, Florida. The VA previously requested to purchase from the City the remaining adjacent two (2)
parcels of the Original Property located at approximately 1455 Northwest 17 Street with the folios 01-
3135-087-0010 and 01-3135-087-0012, Miami, Florida, containing an approximate total combined lot area
of 42,309 square feet (collectively, "Properties"), for a total purchase price of Three Million Six Hundred
Thousand Dollars ($3,600,000.00) ("Purchase Price") for use by the VA as additional parking and for other
VA governmental purposes for their neighboring facility.
The City desired to assist the VA with the proposed sale of the Properties to the VA through the
government to government sale provisions of Section 29-B(c) of the Charter of the City of Miami, Florida,
as amended ("Charter") and the City Manager determined, found, and recommended in his memorandum
in June 2018 that in accordance with the Charter and with Section 18-182 of the Code of the City of Miami,
Florida, as amended ("City Code"), the proposed sale of the Properties to the VA would be in the best
interests of the City and the greater Miami -Dade communities to assist veterans and their families. The
City Commission on June 8, 2017 adopted Resolution No. 17-0275 and determined that it was is in the
best interests of the City to transfer and to sell the Properties to the VA for the Purchase Price, with
reverters and restrictions, in accordance with the Charter and the City Code, and authorized the City
Manager to negotiate and execute a purchase and sale agreement, in a form acceptable to the City
Attorney, and further authorized the City Manager to negotiate and execute any and all other necessary
documents, extensions, modifications, renewals, and amendments, in a form acceptable to the City
Attorney, to accomplish and to evidence the foregoing as required for implementation of said Resolution
and at no costs to the City. Subsequent to June 8, 2017, the VA has determined that it may make
permanent improvements to the Properties and federal rules and regulations will not allow the VA to
purchase the Properties with the reverters and restrictions required by the City Charter and City Code.
The VA has determined it is able to pay the City a use fee payment in the amount of Three Million Six
Hundred Thousand Dollars ($3,600,000.00) ("Use Fee Payment") for a permanent private easement on
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On March 10, 2005, the City of Miami ("City") conveyed to Wagner Square, LLC ("Wagner Square") three
(3) separate parcels of real property formerly known as the Civic Center Site and later known as Wagner
Square located at approximately 1431 Northwest 17 Street, 1405-07 Northwest 17 Street, and 1700
Northwest 14 Avenue, Miami, Florida (collectively, "Original Properties") pursuant to a Purchase and Sale
Agreement dated May 30, 2003, as amended ("Agreement"). On September 21, 2012, the United States
of America, Department of Veterans Affairs ("VA") acquired one (1) parcel of the Original Properties
located at 1455 Northwest 17 Street (F/K/A 1700 Northwest 14 Avenue) from the City through a Special
Warranty Deed recorded in Official Records Book 28289, Page 2750 of the Public Records of Miami -Dade
County, Florida. The VA previously requested to purchase from the City the remaining adjacent two (2)
parcels of the Original Property located at approximately 1455 Northwest 17 Street with the folios 01-
3135-087-0010 and 01-3135-087-0012, Miami, Florida, containing an approximate total combined lot area
of 42,309 square feet (collectively, "Properties"), for a total purchase price of Three Million Six Hundred
Thousand Dollars ($3,600,000.00) ("Purchase Price") for use by the VA as additional parking and for other
VA governmental purposes for their neighboring facility.
The City desired to assist the VA with the proposed sale of the Properties to the VA through the
government to government sale provisions of Section 29-B(c) of the Charter of the City of Miami, Florida,
as amended ("Charter") and the City Manager determined, found, and recommended in his memorandum
in June 2018 that in accordance with the Charter and with Section 18-182 of the Code of the City of Miami,
Florida, as amended ("City Code"), the proposed sale of the Properties to the VA would be in the best
interests of the City and the greater Miami -Dade communities to assist veterans and their families. The
City Commission on June 8, 2017 adopted Resolution No. 17-0275 and determined that it was is in the
best interests of the City to transfer and to sell the Properties to the VA for the Purchase Price, with
reverters and restrictions, in accordance with the Charter and the City Code, and authorized the City
Manager to negotiate and execute a purchase and sale agreement, in a form acceptable to the City
Attorney, and further authorized the City Manager to negotiate and execute any and all other necessary
documents, extensions, modifications, renewals, and amendments, in a form acceptable to the City
Attorney, to accomplish and to evidence the foregoing as required for implementation of said Resolution
and at no costs to the City. Subsequent to June 8, 2017, the VA has determined that it may make
permanent improvements to the Properties and federal rules and regulations will not allow the VA to
purchase the Properties with the reverters and restrictions required by the City Charter and City Code.
The VA has determined it is able to pay the City a use fee payment in the amount of Three Million Six
Hundred Thousand Dollars ($3,600,000.00) ("Use Fee Payment") for a permanent private easement on
THIS DOCUMENT IS A SUBSTITUTION TO
ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT
END OF THIS DOCUMENT.
the Properties with the same restrictions and reverters in order for the VA to use the Properties exclusively
for VA governmental purposes ("Easement"). The City Commission hereby determines that it is still in the
best interests of the City to enter into an agreement in order to grant to the VA an Easement with the
same reverters and restrictions ("Easement Agreement") for the VA to use the Properties exclusively for
VA governmental purposes and for the VA to pay the Use Fee Payment to the City for the exclusive use of
such Properties by the VA for VA governmental purposes. The City Commission hereby also determines
that should the VA cease to use the Properties exclusively for VA governmental purposes as further
described in the Easement Agreement, then such Easement shall terminate and the Properties shall
automatically revert to the City with the City retaining the Use Fee Payment. Section 18-182 of the Code
of the City of Miami, as amended ("City Code") requires a four-fifths (4/5ths) affirmative vote of the City
Commission in order to waive the procurement procedures, and it continues to remain in the best
interests of the City to waive such procurement procedures in order for the VA to have long-term
governmental use of the Properties. The Properties have previously been the subject of environmental
remediation partially funded through a Brownfields Environmental Development Initiative ("BEDI") grant
and a portion of the Use Fee may be required to be returned to the City and/or the United States
Department of Housing and Urban Development ("HUD") as program income under HUD and BEDI rules
and regulations
RECOMMENDATION
In light of the above stated, approval waiving the requirements of Section 29-B(C) of the City Charter
and Section 18-182 of the Code of the City of Miami for the procedures and return to the City of fair
market value to sell the Properties to the V A for the purchase price with reverters and restrictions in
accordance to the City Code, and the affirmation of these written findings and the forwarding of the
same to the City Commission for ratification by a four-fifths (4 /5ths) vote is respectfully requested.
Please sign below to acknowledge your approval.
�9 - -
Emilio T. Gonzalez, Ph. D.
City Manager
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Cc: Miriam Arcia, Agenda Coordinator
DREAM 180007
SUBSTITUTED
Attachment A
To be distributed