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HomeMy WebLinkAboutAgenda Item Summary Form",A1' UF..4y AGENDA ITEM SUMMARY FORM File ID: #6052 Date: 06/18/2019 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 06/27/2019 Sponsored By: District Impacted: District 1 Type: Resolution Subject: Appraise - Melreese Golf Course Purpose of Item: A Resolution of the Miami City Commission authorizing the City Manager to retain CBRE Valuation & Advisory Services as the appraisal company to provide an appraised value of the Melreese Golf Course property, located generally at 1400 NW 37th Avenue, Miami, Florida 33125 in connection with the negotiations between the City of Miami and Miami Freedom Park, LLC. Background of Item: The City of Miami ("City") owns the property located generally at 1400 NW 37th Avenue, Miami, Florida 33125, commonly known as the Melreese Golf Course ("Melreese"). The City Commission, at its meeting on July 18, 2018, pursuant to Resolution No. 18- 0309, approved a ballot question and accompanying term sheet that set forth the various terms of a lease agreement with Miami Freedom Park LLC ("MFP"), including that "annual rent payable to the City by MFP will be equal to the greater of (a) the Fair Market Value of the Leased Premises or (b) 5.0% of the Rent, but under no circumstances less than $3,577,000 per year." At the November 6, 2018 Special Election, City of Miami ("City") voters approved a referendum, by over sixty percent (60%), approving an amendment to Section 29-B of the Charter of the City of Miami, Florida, as amended, authorizing the City Commission to negotiate and execute a ninety nine (99) year lease with MFP for approximately seventy three (73) acres of City -owned land; waiving competitive bidding; converting Melreese, at no cost to the City, to a soccer stadium with a minimum of 1,000,000 square feet of office, retail, and commercial uses; a minimum of 750 hotel rooms; providing for a living wage for on-site employees; and for a minimum rent of $3,577,365.00 and a twenty million dollar ($20,000,000) contribution to the City for a fifty-eight (58) acre public park or other green space ("Project") The City Commission, at its meeting on March 14, 2019, pursuant to Resolution No. 19- 0117, expressed an interest in being advised of and selecting all outside consultants, law firms, real estate appraisers or brokerage firms, surveyors, mappers, or any other vendor, contractor, or provider for this Project. CBRE Valuation & Advisory Services previously completed an appraisal of the Melreese property on May 21, 2018 and therefore is sufficiently familiar with the site to prepare an appraisal of Melreese in an expeditious manner. The City Commission approves the City Manager's selection of CBRE Valuation & Advisory Services as the appraiser to determine the fair market value of the Melreese property for purposes of negotiating the rent and other financial provisions of the lease agreement with MFP. Budget Impact Analysis Item is NOT funded by Bonds Item is an Expenditure Item is NOT Related to Revenue Total Fiscal Impact: $5,900.00 04002.221100.531000.0000.00000 Reviewed By Real Estate and Asset Management Daniel Rotenberg Office of Management and Budget Pedro Lacret Office of Management and Budget Christopher M Rose City Manager's Office Fernando Casamayor City Manager's Office Nikolas Pascual Legislative Division Marta Gomez Office of the City Attorney Daniel Diaz Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Maricarmen Lopez Department Head Review Completed 06/14/2019 1:29 PM Budget Analyst Review Completed 06/15/2019 11:16 AM Budget Review Completed 06/15/2019 11:18 AM Assistant City Manager Review Completed 06/17/2019 11:58 AM City Manager Review Completed 06/18/2019 11:03 AM Legislative Division Review Completed 06/18/2019 4:52 PM ACA Review Completed 06/18/2019 5:02 PM Deputy City Attorney Review Completed 06/18/2019 5:32 PM Approved Form and Correctness Completed 06/18/2019 7:14 PM Meeting Completed 06/27/2019 9:00 AM -,IV ov . City of Miami IIS°°1 il°4I° *01\ °° °° Legislation Resolution File Number: 6052 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:6/27/2019 A RESOLUTION OF THE MIAMI CITY COMMISSION AUTHORIZING THE CITY MANAGER TO RETAIN CBRE, INC., THROUGH ITS VALUATION AND ADVISORY SERVICES DIVISION, AS THE APPRAISAL COMPANY TO PROVIDE AN APPRAISED VALUE OF THE MELREESE GOLF COURSE PROPERTY, LOCATED GENERALLY AT 1400 NORTHWEST 37TH AVENUE, MIAMI, FLORIDA 33125, IN CONNECTION WITH THE NEGOTIATIONS BETWEEN THE CITY OF MIAMI AND MIAMI FREEDOM PARK, LLC. WHEREAS, the City of Miami ("City") owns the property located generally at 1400 Northwest 37th Avenue, Miami, Florida, 33125, commonly known as the Melreese Golf Course ("Melreese"); and WHEREAS, the City Commission, at its meeting on July 18, 2018, pursuant to Resolution No. 18-0309, approved a ballot question and accompanying term sheet that set forth the various terms of a proposed lease agreement with Miami Freedom Park, LLC ("MFP"), including a term providing that "annual rent payable to the City by MFP will be equal to the greater of (a) the Fair Market Value of the Leased Premises or (b) 5.0% of the Rent, but under no circumstances less than $3,577,000 per year"; and WHEREAS, at the November 6, 2018 Special Election, City of Miami ("City") voters approved a the amendment to Section 29-B of the Charter of the City of Miami, Florida, as amended, authorizing the City Commission to negotiate and execute a ninety nine (99) year lease with MFP for approximately seventy three (73) acres of City -owned land; waiving competitive bidding; converting Melreese, at no cost to the City, to a soccer stadium with a minimum of 1,000,000 square feet of office, retail, and commercial uses; a minimum of 750 hotel rooms; providing for a living wage for on-site employees; and for a minimum rent of $3,577,365.00, in addition to a twenty million dollar ($20,000,000.00) contribution to the City for a fifty-eight (58) acre public park or other green space ("Project"); and WHEREAS, the City Commission, at its meeting on March 14, 2019, pursuant to Resolution No. 19-0117, expressed an interest in being advised of and selecting all outside consultants, law firms, real estate appraisers or brokerage firms, surveyors, mappers, or any other vendor, contractor, or provider for the Project; and WHEREAS, CBRE, Inc., through its Valuation and Advisory Services Division ("CBRE"), previously completed an appraisal of Melreese on May 21, 2018 and, therefore, is sufficiently familiar with the site to prepare an updated appraisal in an expeditious manner; and WHEREAS, the City Commission approves the City Manager's selection of CBRE, pursuant to his authority under Section 18-85 of the Code of the City of Miami, Florida, as amended ("City Code"), as the appraisal company to determine the fair market value of Melreese for the purposes of negotiating the rent and other financial provisions of the proposed lease agreement with MFP; 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 fully set forth in this Section. Section 2. The City Manager's selection, pursuant to his authority under Section 18-85 of the City Code, of CBRE as the appraisal company to provide appraisal services in connection with the negotiation of the Project with MFP is hereby authorized.' Section 3. This Resolution shall become effective immediately upon adoption and signature of the mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 1 i ria i . ndez, City Attor iey 6/18/2019 ' 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 Code provisions 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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