Reso 2008-1319 - Laserfiche WebLink

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I Commission, I have come to the conclusion that the City has a genuine opportunity to develop the Alamo site to continue to provide essential services to residents and visitors. As part of a plan to continue to provide essential services to residents and VIsItors, staff recently negotiated a Letter of Intent with Dezer Development Company ("Dezer Development") to form a publiclprivate partnership to construct a mixed used project on the Alamo site. The development project shall consist of the following public amenities if approved by the appropriate government agencIes: (1) A 17,000 square foot Conference Center to accommodate a minimum of 500 people for a sit-down meal; and (2) A 35,000 square foot Medical Facility/Offices to be operated by Mount Sinai Medical Center; and (3) A 39,000 square foot Car Museum; and (4) A 10,000 square foot Restaurant to complement the Museum; and (5) A skywalk over Collins Avenue to permit public access to Trump International and the Beach; and (6) At least 100,000 square feet of commercial office space. A copy of the Letter of Intent is attached as Exhibit "A" to the resolutions. As indicated by the Letter of Intent, Dezer Development will be the primary developer of the project. Mount Sinai Medical Center has tentatively agreed to work with the City and Dezer Development to operate the medical offices within the project. A letter of support from Mount Sinai is attached as Exhibit "A". Based on the Letter of Intent, Dezer Development will contribute or finance significant funds (currently estimated between $22-35 Million Dollars) to construct the project. Additionally, Dezer Development has agreed to pay the City annual lease payments of $350,000 upon completion of the project. The lease payments will be subject to annual increases in accordance with the Consumer Price Index. Simply put, the City will have a consistent source of revenue from this project since the lease payments are required to be made for ninety-nine (99) years. A consistent source of revenue is vital for the City's fiscal welfare in light of expected revenue shortfalls from decreased ad valorem tax revenue. Further, the City will have the right to use the conference center nine (9) days per year at no charge for the benefit of the public. The City and Dezer Development have not finalized the time of commencement or completion for this publiclprivate partnership. However, the parties anticipate the project will be completed within the next six (6) years. The pm1ies will formalize this partnership in the near future by entering into a joint development agreement. To this end, it is important to note that this public/private partnership is to create public facilities to serve a growing residential and tourist population. As you know, the City of Sunny Isles Beach was recognized as one of the top tourist destinations in North America. Additionally, I certainly believe that the proposed mixed-used project on the Alamo site should spur the redevelopment of commercial properties on the west side of Collins A venue to provide additional amenities to our residents and tourists, and as such. will be a public benefit. /attachmcnt