2011-1004 Special City Commission Meeting

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Summary Minutes: Special City Commission Meeting October 4, 2011 Sunny Isles Beach, Florida property. If the City had to take it back, and let's be real, there is not one condo in Miami- Dade County even in the last two or three years where things were terrible and people were not paying their maintenance, not one has defaulted yet. This property is going to be new buyers, who know what they are getting into, a lot of these people are condo owners in the commercial sense but business people will be using this space for their office. This is a beautiful project, and he showed visuals comparing the Dezer project with their project. He said that Dezer's project is massive and will block the entire area, whereas their project is setting the building back by 75 feet instead of the required 25 feet, create a plaza and have some harmony with the City, the idea is to create a City Center. They have set it up in such a way that it is going to be two separate buildings so that we can have some medical facilities. Another question you had was whether they had the money or not, the City Attorney has asked them to give the City before they start construction, proof of funds all the way through. In terms oflong term leases, the City is going into one with Milton and you have one next door (Tony Roma's). It just so happens that Dezer was going to do it and insisted on doing it until they fell out of lease and now all of a sudden they want to pay cash. Commissioner Aelion asked what was the purpose of the 25-year term versus the purchase, and Mr. Weintraub said originally they had talked about doing a purchase with the City holding the paper but in selling condos you can't have a mortgage in front of it and so we had to go with a lease which is why they came back with a second Letter ofIntent. Commissioner Aelion said in other words you are basing your term on the sale of the unit or what is the risk exposure that you are getting yourself out and are you putting the City at risk, and Mr. Weintraub said that the City has absolutely no risk by the time they get started here the City will have $1.5 Million in their pocket. Commissioner Aelion said he was talking about the $4.5 Million, and Mr. Weintraub said at that point you will have $3 Million in your pocket, you are going to have a building built that is worth $40 Million, what is the risk, what are the odds that you are talking $27,000 a month which is about $3 a square foot per year in the units you are talking about 30-cents a square foot. It is cheaper than what people pay in insurance in some buildings, and cheaper in maintenance, not the actual maintenance payment because the total maintenance for this building is less than something across the street in one of the condos, the condos pay upwards of $6-$8. Commissioner Aelion said he understands all ofthat but what he is saying as far as the City is concerned, what would prevent you from making a similar offer so that it would eliminate the risk to the City and you will save yourself $4 Million of interest for the life of the loan. Mr. Weintraub said because when we sat down we came up together with a number, we agreed on a payout the way we did it, and we are not here to renegotiate at this point, we are here because we have gotten to the terms, we negotiated the whole thing, we have a lease pretty much, and all we have are some minor nuances on a lease document. Everybody was in the mind frame when we agreed to this Letter of Intent (LOI) that it was fine, and now all of a sudden somebody comes in at the 11th hour, somebody that promised you things and never delivered throwing a monkey wrench in here, and he is not going back and forth, that is not the way it works. Vice Mayor Thaler said that Mr. Weintraub made a statement that the City would have to go out and buy some other property, in this contract from Dezer, is it strictly the Alamo property 7