2011-0721 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting July 21, 201 I City of Sunny Isles Beach, Florida lOP. A Resolution of the City Commission of the City of Sunny Isles Beach, Florida, Approving a Letter ofIntent Between the City of Sunny Isles Beach and The Weintraub Companies for the Purchase of 18080 Collins Avenue ("Alamo Property"), in the Amount of $7,500,000.00, Attached Hereto as Exhibit "A"; Authorizing the City Manager and City Attorney to Do All Things Necessary to Effectuate this Resolution; Providing for an Effective Date. Action: [City Clerk's Note: Heard after Item 100.] City Clerk Hines read the title, and City Manager Cohen reported that this is a Letter of Intent for the purchase of the Alamo Property at 18080 Collins Avenue at a purchase price of$7.5 Million. The deal structure is a series of payments totaling $3 Million before construction begins, and then a $4.5 Million Note over a 25-year period with an interest rate of 5.5%. He noted that he deleted a line about an early option to pay on the Letter of Intent, and so the memo on this is inaccurate in that regard, there is at present no early option to pay. The total gross value of payments would be just over $11 Million. Public Speakers: Abraham Weintraub; Warren J. Stamm, Esq.; Abraham Weintraub representing The Weintraub Companies said the concept would be to build a 120,000 square foot building, an office condo, where you have people owning the actual space and you end up with having a lot more owners-users. He presented renderings of a proposed building as well as the building they constructed in A ventura. Vice Mayor Thaler asked about exclusivity, do they have exclusive rights, and how long do they actually have to come in and give us a true down payment. City Manager Cohen said they have exclusivity up until any point that the Commission determines not to move forward with the project. The exclusivity is non-binding at that point and the City can move forward in another direction if it so chooses. There is an initial payment of $200,000 when we execute the Purchase Agreement, and then they will come up with the remaining $800,000 30-days after Site Plan approval. There is a schedule in the Letter of Intent, another $500,000 within 12 months, and another $1.5 Million within an additional 12 months. Commissioner Scholl noted that we had a Letter oflntent that came before the Commission a while back, do we have any obligations under that Letter oflntent, is there anything binding on that property, is there any conflict with this deal. City Attorney Ottinot said there is no obligation with respect to the Letter of Intent but we do have a current lease with Alamo which we have a right to terminate after this month without cause but we have a penalty in that lease. Commissioner Scholl asked Mr. Weintraub if there were any zoning variances that he will be looking for to build this building, and Mr. Weintraub said that the lot is 450- feet long by 1 OO-feet wide, and so in order to get a proper parking structure, you really need a ramp and parking on both sides of that, and they worked it out if they had a 90-foot building for parking they would be able to fit that in, and so for the parking structure they would need an additional 5-feet on either side. Commissioner Scholl said he is assuming that we will have a mortgage on this property after we sell it, and so we will stay in first position on that mortgage, and City Manager Cohen said that they have made it very clear to the buyer that the City is not willing to subordinate. If the Commission authorizes them to move forward then we would move to the actual purchase agreement negotiations stage. 13