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Res No 001-24-16106RESOLUTION NO. 001-24-16106 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, APPROVING AN AGREEMENT WITH AVALON SOMI, LLC REGARDING ENHANCED RIGHT OF WAY IMPROVEMENTS WITHIN 73RD STREET BETWEEN SW 59m AVENUE AND SW 58TH COURT; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE THE AGREEMENT; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. WHEREAS, in connection with its development of the property located at 7331 SW 59th Avenue/5850 SW 73 Street ("Property"), Avalon Somi, LLC (the "Developer"), entered into a Second Amended and Restated Development Agreement (the "Development Agreement") recorded in Official Records Book 33837, Page 419, of the Public Records of Miami-Dade County, Florida, to govern the development of the Property; and WHEREAS, during the negotiation of the Development Agreement, the City of South Miami (''City") and the Developer discussed certain potential additional streetscape improvements within SW 73 rd Street, between SW 59th Avenue and SW 58th Court (the "Potential Streetscape Improvement Area''); and WHEREAS, the contemplated additional streetscape improvements include but are not limited to sidewalk, curb, gutter, removal of parking, and undergrounding utility lines on the north portion of the Potential Streetscape Improvement Area, and adding one or more crosswalks across SW 73rd Street within the Potential Streetscape Improvement Area (the "Additional Streetscape Improvements"); and Page 1 of3 Res. No. 001-24-16106 WHEREAS, the City and the Developer wish to enter into an agreement to address the process for finalizing the scope of the Additional S treetscape Improvements and their construction, including the costs therefor; and WHEREAS, the City Commission wishes to approve the fonn of the Agreement attached hereto as Exhibit "A", and authorize the City Manager to further negotiate and execute such Agreement, subject to the approval of the City Attorney as to fonn and legal sufficiency; and WHEREAS, The City Commission finds that this Resolution is in the best interest and welfare of the City. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA, AS FOLLOWS: Section 1. Recitals. The above-stated recitals are true and correct and are incorporated herein by this reference. Section 2. Approval of Ag .. eement. The City Commission hereby approves the fo1m of the Agreement attached hereto as Exhibit "A''. Section 3. Authorization to Negotiate and Execute Agreement. The City Manager is authorized to further negotiate and execute such Agreement substantially in the form attached hereto as Exhibit "A,'' subject to the approval as to form and legal sufficiency by the City Attorney. Section 4. Implementation. The City Manager is hereby authorized to take all actions necessary to implement this Resolution. Page 2 of3 Res. No. 001-24-16106 Section 5. Corrections. Conforming language or technical scrivener-type corrections may b e made by the C ity Attorney for any co nf01111ing amendments to be incorporated into the final reso lution for signature. Section 6. Effective Date. This Resolution shall become effective immediately upon adoption . PASSED AND ADOPTED thi s 16th day of January, 2024. ATTEST: READ AND APPROVED AS TO FORM, LANGUAGE, LEGALITY AND EXECUTION THEREOF RMAN, P .L. CITY ATTORNEY APPROVED: COMMISSION VOTE: Mayor Fernandez: Vice Mayor Bonich: Commissioner Calle: 5-0 Yea Yea Yea Commissioner Liebman: Yea Commission er Corey: Yea Page 3 o f3 Agenda Item No:2. City Commission Agenda Item Report Meeting Date: January 16, 2024 Submitted by: Samantha Fraga-Lopez Submitting Department: City Manager Item Type: Resolution Agenda Section: Subject: A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SOUTH MIAMI, APPROVING AN AGREEMENT WITH AVALON SOMI, LLC REGARDING ENHANCED RIGHT OF WAY IMPROVEMENTS WITHIN 73RD STREET BETWEEN SW 59TH AVENUE AND SW 58TH COURT; AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE THE AGREEMENT; PROVIDING FOR IMPLEMENTATION, CORRECTIONS, AND AN EFFECTIVE DATE. 3/5 (CITY MANAGER) Suggested Action: Attachments: Memo-_Avalon_ROW_Agreement (2).docx 47U948702-Resolution Approving Form of Avalon Right of Way Agreement v2.DOCX SoMi_Add'l_Streetscape_SideAgreement Jan 10_v2ev.docx 1 CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM TO: The Honorable Mayor, Vice Mayor, and Members of the City Commission FROM:Genaro “Chip” Iglesias,City Manager DATE:January 16, 2024 SUBJECT:Avalon Bay Right-of-Way Agreement RECOMMENDATION: Approve the Right-of-Way Agreement (the Agreement)with Avalon Bay and authorize the City Manager to further negotiate and execute the agreement. BACKGROUND: In connection with its development of the property located at 7331 SW 59th Avenue/5850 SW 73 Street, Avalon Somi, LLC (the “Developer”), entered into a Development Agreement with the City, which governs the development of the Property. During the negotiation of the Development Agreement the City and the Developer discussed certain potential additional streetscape improvements within SW 73rd Street, between SW 59th Avenue and SW 58th Court. The contemplated additional streetscape improvements include but are not limited to sidewalk, curb, gutter, removal of parking, and undergrounding utility lines on the north portion of the Potential Streetscape Improvement Area and adding one or more crosswalks across SW 73rd Street within the Potential Streetscape Improvement Area.The Agreement establishes a process outside of the Development Agreement to explore the feasibility of the additional streetscape improvements. FUNDING: N/A ATTACHMENTS: Resolution Right-of-Way Agreement 2 AGREEMENT ,p,- TH IS A GRE EMENT ("Agreem e nt") is made a nd e nte re d in to as of thi s ,1). O day of February, 2024, by and betv,1een th e CITY OF SOUTH MIAMI, a Florida muni c ipa l corp o ration ("City") and AVALON SOMI, LLC , a Delaware limited li ab ility company ("Developer"). RECITALS: WHEREAS , the D eve lo p e r is th e owner of t he rea l prope rty located within t he C ity which is more pa rticularly d escrib ed in the legal descriptio n attached h ereto as Exhibit A (the "Prope rty"); a nd WHEREAS , o n August I 0 , 2023 , the C ity and the Devel o per entered into the Second Amended and R estated Deve lo pment Agreement (the "Devel o pm e nt Agreement") recorded in Officia l Record s Book 33837, Page 4 19 of the Public Record s of M iami-Dacle County, F lo rid a, to govern th e development of the Property; and , WHEREAS , the Prope r ty is to b e d eveloped in s ubstanti a l conformance w ith th e plan s e ntitled "South Miam i Market" el ate d March 22, 2023 by Corw il A rchi tects, to geth e r w ith s uppo rtin g s ubmittal s, fil ed b y th e Develope r a nd approved by th e C ity Manager o n June 23 , 2023 as a mino r modificati o n to an approved s ite plan (the "Proj ect "); and WHEREAS, during th e negot ia tio n o f th e Deve lopm e nt Agreem e nt th e C ity and th e Deve loper di scussed certain potenti a l additiona l streetscape im provements w ithin SW 73 rd S treet, between SW 59th Avenue and S W 58th Co urt, as s hown m o re particularly o n Exhibit B attached here to (the "Potential Streetscape Impro vement A re a"); and, WHEREAS, th e Pa rti es recogni ze th a t unkn own and co mplica tin g s ite condition s m ay ex ist w ithin th e Po te ntial Str eetscape Improve m e nt A rea th e di scovery of wh ic h co uld re nd e r it imposs ibl e o r commer ciall y unreasonable for the D evelo pe r to p e rform additi o nal s treetsca p e improve m e nts within th e Potenti a l S treetscape Improvem e nt A rea; a nd , WHEREAS, the C ity inte nd s that th e costs associated w ith the potential additio nal s treetscape improve m e nts s hall b e cost ne utra l to the Deve lop e r a nd , to e n s ure sam e, th e C ity agrees th at the verifi a bl e h a rd and soft costs fo r th e p o te ntial additiona l s treetsca pe improvem e nts shall be cr e dite d against a ll Art in Public Pl aces fees a nd contributi o ns req uir e d und e r the C ity Cod e and o therwi se due to t he C ity pri o r to the certificate of occupa n cy p urs uant to the D evelopme n t Agreeme n t (the "A I PP Re quire me nt"); and, WHEREAS , the Parties w is h to e nte r into thi s A g reem e nt to establis h a process o uts id e of the D eve lopm e nt Agreemen t to explor e th e feasibi li ty of certa in additional str eetsca pe improve m e nts within th e Pote ntial Streetscape Improvement Area, a nd to cons tru ct certa in s treetscape improvem e nts in th e a reas o f th e Potentia l S treetscape Improve m e nt A rea w h e re feas ible ; and , NOW, THEREFORE , in co ns id eratio n of th e mutual covenants e nte re d in to betwee n the C ity a nd Deve loper, a nd in cons id e ration of th e be ne fits to accrue to e ach, it is he reby agreed as fo ll ows : 1. Recitals. The above recitals are true and correct and are incorporated herein and made a part hereof. 2. Definitions. In addition to the defined terms that appear throughout this Agreement, the following terms shall be assigned the following meanings: (a) "Additional Streetscape Improvements" shall refer to those improvements proposed to Miami-Dade County and the City including, but not limited to sidewalk, curb, gutter, removal of existing on-street parking spaces, and landscaping on the north portion of the Potential Streetscape Improvement Area, adding one or more crosswalks at the intersection of SW 73rd Street and SW 59th Avenue within the Potential Streetscape Improvement Area. For clarity, undergrounding of utility lines within the Potential Streetscape Improvement Area ("Utility Undergrounding") are not within the scope of the Additional Streetscape Improvements. (b) "Actual Cost oflmprovements" shall refer to the hard and soft costs associated with the construction of the Additional Streetscape Improvements that are actually expended. (c) "Cost of Improvement Credit" shall refer to the Developer's credit against the AIPP Requirement in an amount equal to all monies actually spent by the Developer developing the plans for and/or constructing the Additional Streetscape Improvements including but not limited to costs incurred for the associated civil engineering, survey work, utility surveys, sub-surface exploration costs, and similar costs. The City shall not be liable to the Developer for any costs incurred by the Developer after the Cost of Improvements Credit is applied, or for any monies paid by Developer in the event the Costs of Improvement Credit exceeds the AIPP Requirement. (d) "Estimated Cost oflmprovements" shall refer to the hard and soft costs associated with the construction of the Additional Streetscape Improvements, as estimated by the Developer prior to the issuance of the permit approval for the Additional Streetscape Improvements. 3. The Process and Scope of Potential Additional Streetscape Improvements. The City Manager and the Developer hereby establish the following process for seeking approval of additional potential streetscape improvements within the Potential Streetscape Improvement Area and further defining the scope of the Additional Streetscape Improvements: (a) The Developer shall prepare civil plans for improvements to the Potential Streetscape Improvement Area and present such plans to Miami-Dade County and the City for permitting prior to March 31, 2024 (the "Permit Application Submission"). Prior to March 31, 2024, the City shall have obtained all requisite 2 signatures necessary for the Permit Application Submission. In the event the City fails to provide all necessary signatures by July I, 2024, the Agreement and all obligations arising hereunder shall terminate without need for further action by either party. (b) Following the Permit Application Submission, the Developer and the City shall cooperate in good faith to evaluate the cost feasibility of the Additional Streetscape Improvements given the status and condition of the right-of-way and private land holdings, and to pursue permits and approvals from all private parties, if any, and agencies with jurisdiction, provided all costs of plans preparation, pursuing approvals, and construction of the Additional Streetscape Improvements are borne by the Developer in accordance with sub-paragraph 4(a) below. Following the feasibility analysis subject to Section 3(d) below, Developer shall use commercially reasonable efforts to process the requisite permits for construction of the Additional Streetscape Improvements. In the event the Developer does not obtain all of the permits and approvals necessary for the construction of the Additional Streetscape Improvements by December 31, 2025, (the "Permit Approval Deadline") then this Agreement shall be null and void without any further action required by either party with no further obligation to either party. ( c) If the Developer does not complete the Developer's portion of the Permit Application Submission by March 31, 2024 (the "Submission Deadline"), then the Permit Approval Deadline as defined in sub-paragraph (3)(b) above shall be extended day for day until such time as the Developer is able to complete the Developer's portion of the Permit Application Submission. For clarity, the Developer's portion of the Permit Application Submission excludes: i) obtaining signatures from any private party landowners within the Additional Streetscape Improvement Area authorizing the Developer to work any private lands within the Potential Streetscape Improvement Area, to the extent such signatures are required; ii) approval by the City authorizing the Developer to perform work on City land; and iii) approval from the City authorizing the Developer to perform work within City right-of-way. (d) The parties recognize the unique challenges posed by the potential unknown conditions and variables that could materially impact the Developer's ability to construct the Additional Streetscape Improvements. In light of these unique challenges, the parties agree that the Developer may allocate the AIPP Requirement as follows: 1. In the event the Estimated Cost of Improvements exceeds $740,000, then the City and the Developer shall work together and in good faith for a period of sixty (60) days to value engineer the Estimated Cost of Improvements to $740,000 or less. If, after this sixty (60) day period the City and the Developer cannot mutually agree to value engineering or a reduced scope which reduces the Cost of Improvements to $740,000 or less, then the Agreement shall be terminated and of no further effect without any further action by either party. The City 3 Manager is hereby delegated with the authority to accept or reject the value engineering or reduced scope identified within this sub- paragraph without need for City Commission Approval. ii. In the event the Estimated Cost of Improvements is less than $740,000, then the Developer shall be authorized to allocate an additional amount, up to $740,000, of the total cost of the AIPP Requirement to cover contingencies and/or unforeseen conditions (the "Reserves"). 111. If the Developer commences construction of the Additional Streetscape Improvements but does not conclude them prior to the issuance of the final certificate of occupancy for the Project, then the Developer at time of final certificate of occupancy shall provide the City with a letter of credit as more particularly described in paragraph 5 below for the amount of the unspent Estimated Cost of Improvements plus Reserves (the "Letter of Credit Amount") which may be used by the City if the Developer does not complete the construction of the Additional Streetscape Improvements on or before the 12-month anniversary of the issuance of the final certificate of occupancy (the "Outside Completion Date"). (e) As a material component of this Agreement, the City must possess and delegate to the Developer the authority to improve and alter the rights-of-way, including any lands within them that are privately held, as necessary for the construction of the Additional Streetscape Improvements no later than December 31, 2025. In the event the City cannot obtain and delegate to the Developer the authority to improve and alter the rights-of-way, including any lands within them that are privately held, by December 31, 2025, then the Developer's obligation to construct the Additional Streetscape Improvements shall terminate without any further obligation whatsoever. 4. Construction, Costs, and Credits Associated with the Additional Streetscape Improvements (a) Developer shall retain and control the design professionals and contractor(s) for the Additional Streetscape Improvements and shall solely bear the risk of the Actual Cost of Improvements exceeding the AIPP Requirement. The Developer shall not be entitled to a refund if the Actual Cost of Improvements exceeds the AIPP Requirement. The Developer shall be entitled to the Cost of Improvement Credit whether or not the Additional Streetscape Improvements are actually constructed, but shall be responsible for properly closing out all permits obtained in connection with the Additional Streetscape Improvements. (b) Upon obtaining all required governmental approvals, the Developer agrees to use commercially reasonable efforts to diligently complete the Additional Streetscape Improvements within a commercially reasonable period of time. For the avoidance of doubt, the issuance of the Project's temporary certificate of occupancy and final 4 certificate of occupancy shall not be conditioned upon the completion of the Additional Streetscape Improvements. (c) The Developer shall be entitled to a Cost oflmprovement Credit against the AIPP Requirement. 5. Reconciliations & Letter of Credit Conditions The Developer and the City shall reconcile the Cost oflmprovement Credit, any remaining obligations with respect to the AIPP Requirement, and other related fees and costs to determine the amount of the Developer's remaining financial obligations under this Agreement (the "Reconciliation"), if any, depending on the circumstances outlined below: (a) In the event this Agreement terminates without the commencement of construction of the Additional Street Scape Improvements, then Reconciliation shall occur within sixty (60) days of the termination date. (b) In the event the Developer commences and completes construction on the Additional Streetscape Improvements prior to receiving a final certificate of occupancy for the Project the Reconciliation shall occur within sixty (60) days of the receipt of the certificate of completion or like instrument memorializing the completion of the Additional Streetscape Improvements. (c) In the event Developer commences construction and completes construction on the Additional Streetscape Improvements after receiving a final certificate of occupancy for the Project but before the Outside Completion Date two reconciliations shall occur as follows: a. An initial Reconciliation shall occur to determine the Letter of Credit Amount prior to the issuance of the final certificate of occupancy for the Project. b. A secondary Reconciliation shall occur within sixty (60) days of the receipt of the certificate of completion or like instrument memorializing the completion of the Additional Streetscape Improvements. (d) In the event the Developer commences construction but does not complete construction by the Outside Completion Date, then the Reconciliation shall occur within sixty (60) days of the Outside Completion Date. Within ten (10) business days of the conclusion of Reconciliation, the Developer shall cause a line of credit to be placed in escrow with First American Title Insurance Company in the Reconciliation Amount. The Developer shall be entitled to substitute a new and updated letter of credit following each Reconciliation the Developer shall have two (2) years from the date the Reconciliation Amount is placed in escrow to satisfy any remaining obligation arising under the AIPP Requirement which shall be calculated as the AIPP Requirement Less the Costs of Improvement Credit. The Developer shall be entitled to the release of the letter of credit to it upon the Developer's satisfaction of the AIPP Requirement. 5 6. Streetscape Improvements Otherwise Required Not Affected. Nothing herein shall be construed to limit or reduce the scope of right-of-way improvements within the vehicular travel lanes and on the south side of SW 73rd Street adjacent to the Project, and in other rights-of-way adjacent to the Project, as those may be contemplated or required pursuant to the City's Code of Ordinances, the Land Development Code, general law, the Large Scale Development approval, the site plan approval, modifications to the site plan approval, the Building Permit or other permit, and the Development Agreement. 7. Notice. All notices, demands, requests and/or other communications required under this Agreement must be given in writing and may be delivered by three types of physical delivery, i.e., (i) hand delivery, with a receipt signed by the party receiving such delivery, (ii) a nationally recognized overnight delivery service providing delivery confirmations, or (iii) certified mail, postage prepaid, return receipt requested; or in lieu of physical delivery it may be delivered by Electronic Communication. Notice will be deemed to have been given upon receipt or refusal of delivery or the failure of delivery due to the receiving party no longer occupying or maintaining both the physical and Electronic Communication address provided in this Section. All notices, demands, requests and other communications required under this Agreement using Electronic Communication must be followed up by physical delivery if the Electronic Communication does not provide a receipt for delivery. It is the duty of the parties to advise each other of any change of address. Any party may designate a change of address by written notice to the other party, received by such other party at least ten ( I 0) days before the change of address is to become effective. a. Notice to Developer. Notice or communication to Developer under this Agreement must be sent to: Avalon Somi, LLC 200 E Broward Blvd, Suite 1400 Fort Lauderdale, FL 33301 Attention: Micah Conn, Senior Vice President of AvalonBay Communities, Inc. With a copy to: A valonBay Communities, Inc. 4040 Wilson A venue, Suite 1000 Arlington, VA 22203 Attention: Legal Department 6 b. Notice to City. In the case of a notice or communication to the City under this Agreement must be sent to: City of South Miami 6130 Sunset Drive South Miami, Florida 33143 Attention: City Manager With a copy to: City Attorney City of South Miami Weiss Serota Helfman Cole & Bierman, P.L. 2800 Ponce de Leon 8 lvd, Suite 1200 Coral Gables, Florida 33134 Attn: Lillian Arango and Tony Recio, City Attorneys With copy by email at larango@wsh-law.com and trecio@wsh-law.com. and City Clerk 6130 Sunset Drive South Miami, Florida 33143 Attention: City Clerk 8. Miscellaneous Provisions. (a) Not A Development Agreement. This Agreement is not a development agreement, and is independent of, and shall not be construed as an amendment or modification to, the Development Agreement. Notwithstanding the foregoing, the Developer's compliance with the terms of this Agreement shall be deemed by the City to satisfy the Developer's AIPP Requirement under the Development Agreement. (b) No Partnership or Joint Venture. It is mutually understood and agreed that nothing contained in this Agreement is intended nor may it be construed in any manner or under any circumstances whatsoever as creating or establishing the relationship of co-partners, or creating or establishing the relationship of a joint venture between the City and Developer, or as constituting Developer as the agent or representative of the City for any purpose or in any manner whatsoever. Nothing contained in this Agreement shall be construed or deemed to name, designate, or cause ( either directly or implicitly) the Developer, or any contractor of the Developer to be an agent of or in partnership with the City. (c) Florida and Local Laws Prevail. This Agreement is governed by the laws of the State of Florida. This Agreement is subject to and must comply with the Charter of the City of South Miami as the same is in existence as of the execution of this Agreement and the ordinances of the City of South Miami; provided, however, 7 (d) (e) (t) (g) future ordinances of the City will not affect the terms and provisions of this Agreement (i) unless uniformly applicable to property similarly situated with the Property and Project; provided, however, to the extent Developer would otherwise be grandfathered or not subject to such ordinances if this Agreement did not exist, Developer will not be subject to such ordinances or (ii) if the same impairs the rights of Developer or the obligations of the City hereunder. Subject to the foregoing, any conflicts between this Agreement and the aforementioned Charter and ordinances will be resolved in favor of the latter. If any term, covenant, or condition of this Agreement or the application thereof to any person or circumstances will to any extent, be illegal, invalid, or unenforceable because of present or future laws or any rule or regulation of any governmental body or entity or becomes unenforceable because of judicial construction, the remaining terms, covenants and conditions of this Agreement, or application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, will not be affected thereby and each term, covenant, or condition of this Agreement will be valid and be enforced to the fullest extent permitted by law. Conflicts oflnterest: City Representatives Not Individually Liable. No commission member, official, representative, or employee of the City or the City Manager may have any personal interest, direct or indirect, in this Agreement, nor may any such commission member, official, representative or employee participate in any decision relating to this Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested. No commission member, official, elected representative or employee of the City or the City Manager may be personally liable to Developer or any successor in interest in the event of any default or breach by the City or the City Manager or for any amount which may become due to Developer or successor or on any obligations under the terms of the Agreement. Counterparts. This Agreement may be executed in counterparts, each of which are deemed an original, and such counterparts will be constitute as one and the same instrument. This Agreement only becomes effective upon execution and delivery of this Agreement by the parties hereto. Successors and Assigns. Except to the extent limited elsewhere in this Agreement, all of the covenants, conditions and obligations contained in this Agreement run with the land and are binding upon and inure to the benefit of the respective successors and assigns of the City and the Developer. An assignment shall not release Developer from its obligations under this Agreement unless an amendment to this Agreement relieving Developer of one or more obligations hereunder is executed and recorded as provided in Section 11 (g) of this Agreement. The City Commission shall not be obligated to approve an assignment or otherwise be relieved of its obligations in this Agreement. Entire Agreement. This Agreement and its Exhibits constitute the sole and only agreement of the parties hereto with respect to the subject matter hereof and 8 correctly set forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect and are merged into this Agreement. Notwithstanding the foregoing, this Agreement shall not be construed to amend or release any portion of the Development Agreement. (h) Amendments. No amendments to this Agreement are binding on either party unless in writing and signed by both parties. Amendments, modifications or releases of this Agreement are only binding if they are by mutual written agreement between: (a) the City Commission or its successors and assigns (which must be a governmental entity); and (b) Developer or its successors and assigns that are expressly designated in writing as receiving the rights and obligations of Developer under this Agreement ("Express Assigns") (i.e., even if the Property is subdivided and more than one (I) owner exists for the Property, then amendments to this Agreement only need to be executed by the City and Developer or its Express Assigns); provided, however, that in the event that any amendment, modification or release of this Agreement materially affects the rights of an owner of a portion of the Property, then any amendment to this Agreement must also require the consent of such property owner. In the event of a modification of this Agreement or a designation of an Express Assign, a written instrument must be duly executed, acknowledged, and recorded in the Public Records of Miami-Dade County, Florida. The parties recognize that the development and operation of the Property and the Project may from time to time require the confirmation, clarification, amplification, or elaboration of this Agreement, in order to deal adequately with circumstances which may not now be foreseen or anticipated by the parties. The City Commission and Developer reserve unto themselves and their Express Assigns the right to enter into such interpretive, implementing or confirmatory written agreements from time to time as they mutually deem necessary or desirable, in their sole discretion, for any such purpose without obtaining the consent or approval of any person or entity. If any portion of the Property has been submitted to the condominium form of ownership, and an amendment, modification or release of this Agreement requires the consent of the owner of such portion of the Property as provided above, then only the condominium association thereof will be required to execute the instrument as to that portion of the Property (in lieu and on behalf of the condominium unit owners thereof). (i) Authorization and Approvals by the City. All requests for action or approvals by the City must be delivered to the City Manager, who is the only party within the City, including the City Commission, with the authority to act or approve the matter on behalf of the City, except for those matters that the City Manager is required by law to obtain City Commission approval. Without limiting the generality of the foregoing or the general authority of the City Manager, the City Manager has the authority to grant extensions of time for performance by Developer for up to ninety (90) days ( extensions of time in excess of ninety (90) days must be approved by the City Commission). If the City Manager's office is vacant or if the City Manager does not have the full authority to act or approve matters required of the City pursuant to this Agreement, then the City Commission will, promptly upon written 9 request by the Developer, and through its regular enactment procedures, designate such other officer or department as may be appropriate to perform the City's obligations. Nothing contained herein or in this Agreement authorizes the City Manager to amend any of the terms of this Agreement. G) Exculpation. Notwithstanding any provision contained in this Agreement to the contrary, it is specifically agreed and understood that there is no personal liability on the part of any manager, member in the Developer (provided such member is acting within the limitations placed on same by Florida law or has not assumed in writing any greater liability with respect to this Agreement), an equity interest holder of a member in the Developer or, if the Developer is a corporation, of any officer, director or stockholder of the corporate Developer or, if the Developer is a partnership, any limited partner of the Developer, with respect to the performance of any of the obligations, terms, covenants and conditions of this Agreement. (k) Caption. The article and section headings and captions of this Agreement and the table of contents preceding this Agreement are for convenience and reference only and in no way define, limit, describe the scope or intent of this Agreement or any part thereof, or in any way affect this Agreement or any part thereof. (I) Days, Holidays. References to "days" in this Agreement shall mean calendar days. Whenever a notice or performance under the terms of this Agreement is to be made or given on a Saturday or Sunday or on a legal holiday observed in the City, it will be postponed to the next following business day, not a Saturday, Sunday, or legal holiday. (m) No Liability for Approvals and Inspections. Except as may be otherwise expressly provided herein, no approval to be made by the City of the Project site or the Project under this Agreement, may render the City liable for its failure to discover any defects or nonconformance with any federal, state, or local statute, regulation, ordinance, or code. (n) Developer Entity. On the date of execution hereof, the Developer is a Delaware limited liability company. In the event that at any time during the term of this Agreement and any extensions and renewals thereof, the Developer is a corporation or an entity other than a Delaware limited liability company, then any references herein to member, membership interest, manager and the like which are applicable to a Delaware limited liability company will mean and be changed to the equivalent designation of such term which is appropriate to the nature of the new Developer entity. ( o) Cooperation; Expedited Permitting; and Time is of the Essence. The Parties agree to cooperate with each other to the full extent practicable pursuant to the terms and conditions of this Agreement. The Parties agree that time is of the essence in all aspects of their respective and mutual responsibilities pursuant to this Agreement. The City will use its best efforts to expedite the permitting review and approval process in an effort to assist the Developer in meeting its demolition, development, and construction completion schedules. The City will accommodate requests from the Developer's agents, representatives, general contractor(s), and subcontractors for simultaneous review of multiple permitting packages, such as those for site work and foundations, and building shell, core, and interiors. Notwithstanding the foregoing, the City is not obligated to issue development permits to the extent the Developer does not comply with the applicable requirements of the Code, LDC, the Existing Approvals, the Comprehensive Plan, this Agreement, applicable building codes, or any other applicable laws, rules, orders, or regulations. The failure of the Agreement to address a permit, condition, term, or restriction shall not relieve Developer of the necessity of complying with the law governing said permitting requirements, conditions, term, or restriction. (p) Severability. If this Agreement contains any unlawful provisions not an essential part of this Agreement and which do not appear to have a controlling or material inducement to the making thereof, such provisions will not have any effect and will be stricken from this Agreement without affecting the binding force of the remainder. In the event any provision of this Agreement is capable of more than one interpretation, one which would render the provision invalid and one which would render the provision valid, the provision will be interpreted so as to render it valid. ( q) Approvals and Consents. Wherever in this Agreement the approval or consent of any party is required, and except as otherwise specified, such approval or consent will not be unreasonably withheld or delayed. (r) Sovereign Immunity. Nothing in this Agreement shall be deemed or otherwise interpreted as waiving the City's sovereign immunity protections existing under the laws of the State of Florida, or as increasing the limits of liability as set forth in Section 768.28, Florida Statutes. (s) Non-Discrimination. No covenant, agreement, lease, conveyance, or other instrument concerning the sale, lease, use or occupancy of the Project or any portion thereof shall be affected or executed by Developer, or any of its successors or assigns, whereby the Project or any portion thereof is restricted by Developer, or any successor in interest, upon the basis ofrace, color, religion, sex, national origin, or handicap. Developer will comply with all applicable state and local laws, in effect from time to time, prohibiting discrimination or segregation by reason of race, color, religion, sex, national origin, or handicap in the sale, lease, use or occupancy of the Project or any portion thereof. Furthermore, Developer agrees to make accommodations for the handicapped as required by law and that no otherwise qualified handicapped individual shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, be denied access to facilities within the Project or be subjected to discrimination under any program or activity allowed under this Agreement except as permitted by law. 11 (t) Agency Status. In the event construction of Additional Improvements proceeds in accordance with this Agreement, the City appoints Developer as its agent and Developer agrees to act for the City concerning the construction of Additional Improvements. The City shall have control over the actions of the Developer regarding such construction. Developer shall, therefore, be deemed a state agency or subdivision pursuant to section 768.28(2), Fla. Stat. entitled to all rights, privileges, and/or immunities of a state agency or subdivision as defined in Section 768.28, Florida Statutes, including but not limited to the protections of sovereign immunity. Notwithstanding anything to the contrary herein, any potential liability of the Developer, and its defense of any such claim and its associated costs (including but not limited to attorneys' fees, judgments, and court costs), shall be wholly independent of the City, and nothing herein shall be construed as imposing an obligation on the City to indemnify or defend the Developer in any action, nor shall it be construed to waive the City's rights, privileges, and/or immunities set forth in law. Nothing herein is intended, nor shall it be construed to establish an employment relationship. (q) Undergrounding Power. The Developer shall cause the introduction of the City to the responsible persons within Florida Power & Light Company ("FPL") in order to obtain a good faith estimate of the cost of undergrounding the power lines within the Potential Streetscape Improvement Area. For the avoidance of doubt, this paragraph does not create an obligation on the Developer's part to pay for the estimate or perform the work to underground the powerlines. [SIGNATURE PAGES TO FOLLOW] 12 WITNESSES B y : ~~ S ig n~ ofiitness # 1 Print o r type Print or type name STATE OF _ _._f--=u:a,;=-::...c.\L..._P -'-P. ____ _ COUNTY OF ~<Lo~ D EVELOPER: A ALON S OMI, LLC, a Delaware L in iability Co mpan y By: __ ....:..._-----,1-=---------- Mica nn , as Seni o r Vice Presid e n t of A ONBA Y COMMUNITIES, IN Maryland C orporatio n), th e la tte r of w hi c h is t he manage r a nd sole 111 e1 b e r of AV ALON SOMI INVESTOR, LLC (a Delaware Limited Liability Compa ny), the m anager a nd so le member of AV ALON SOMI, LLC (a Delaware Limited Liability Compan y) The fo regoin g in stru m e nt was ackn owle dged befo re m e thi s ~-'<--day of Februar y , 2024, by Micah Conn , as Seni o r V ice Pres ident of AVALONBAY COMMUNITIES, INC. (a Maryland Corporati on), the latte r of w hi c h is th e ma n ager a nd so le me m ber of AVALON SOMI INVESTOR, LLC (a D e lawar e L imi ted Liabi lity Company), w hi c h is the ma n ager a nd so le member of AVALON SOMI , LLC (a De lawa re Limi ted Li ab ili ty Co mpany), w ho is persona ll y kn ow n to m e o r w ho has/h ave produced ,->I A as id entification an d w ho did · take a n oath a nd w ho swo re o r affi rmed that he s ig ned th is Agreemen t o n be half of AVALON SOMI, LLC, t h at h e is a ut ho ri zed to s ig n th is Agreeme nt by AVALONB AY COMMUNITIES, IN C., the m a nager a nd sole m e mbe r o f AV ALON SOMI INVESTOR, LLC, and he is a uth orized to s ig n this Agreement by AVALON SOMI I NVESTOR, LLC, th e man ager and so le m e mbe r ofAVALONSOMI,LLC. ~ -=-=-=-::xv,..1t~~~..,u-(_=46"1£-==.=---- ~fNotary (NOTARY SEA L) \\\\lllf11,,, A /;i~~-~?~ ngela Gayle Stevenson t(8.Y'~ ~omm.: HH 363353 \!1i>ii~ Exp ires: February 16, 2027 '''"'""'' Notary Public • State of Florida Pr in t or type name 13 Re ad and Approved as to Form, Language, Le ga lity a nd Execution T hereof: By :_______,.___.,_~_----- Weis s Serota H e lfm an Co le & Bi e rman P.L. A nth o ny L. Reci o C ity Atto rn ey STATE OF FLORIDA COUNTY OF MIAMI-DADE CITY UTHMIAMI "Chip" Ig les ias C ity Ma nage r The fo rego in g in strume nt was ack now ledged befo re me thi s __ d ay o f Feb ruary 2024, by Ge naro "Chi p" Ig les ias , C ity Ma nager, who is pe rso na ll y known to me a nd acknow ledge exec utin g th e same freely and vo lun tar il y un de r a uth o ri ty ves ted in him by th e City of South Miami . S g nature of Not (NO TARY SEA L) J-/1gA 1/. ~ ✓d:- Print o r type nam e .. •;,,•~ MARIAL. GARCIA }>•j.;:') MY COMMISSION # HH 143024 ;_0~-~·~~i EXPIRES: October 16, 2025 ·--.~~~·r:t~f-.-Bonded Thru Nota,y Publlc UndetWritera 14 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY The land referred to herein below is situated in the County of Miami-Dade, State of Florida, and is described as follows: Lots 23 through 32, inclusive, LESS the North 10 feet of Lot 23; the West 5 feet of Lots 23, 24, 25, 26 and 27; the East 5 feet of Lots 28, 29 and 30; the East 5 feet of Lots 31 and 32 and the North 10 feet of Lot 32, W.A. LARKIN'S SUBDIVISION according to the Plat thereof, as recorded in Plat Book 3, Page 198, of the Public Records of Miami-Dade County, Florida. 15 EXIDBITB POTENTIAL STREETSCAPEI1VIPROVE1\1ENT AREA 16 POTEN T~L ~ IMPRot1~EEETSCAPE NT AREA 1~: 9 :---.;~-- 0 -- =~;_:r;·;~ i ;< ,,r":..~~ :~; . ~~ __.. -·".-:.,7:;':-- Ttt]lli~~i -...::.::::'" ~·- u;:£.:.. ·•····· ,..._ .. ,:. ---===.----=-----:;;;..... --~·~~~11 .,.nr,,,,'i,"-;;',!Er ... : ,.r,~~-·~·- /(::: --: . ..::::-;r,:;'.!~ .... ~::,;r;~ :::...:.. .... ,- ~~;:~§£?H ri f:.'t! :· re.~---~ t.~•~bt ~~ "!'1""'=.---r,._~~<t., .,~ L .. L ---~~- ~~ ~ ~-'~1:,p:·.• • & __ ,.. .. .,.,. .-::.,...,,..... '1~~ ,',;.;~.,_, al "-::-::== r:~:T;ft~ ··;:,.::::::- r:::.·~ ,._.._, :=---____ .:::-..:=.:. ... ~--...:.,,....,_,._....,i -..L•...:.. _... ............. ,.,..,....,.._.,,.,,,.- I I J l l l r i 1 AGREEMENT THIS AGREEMENT (“Agreement”) is made and entered into as of this ___ day of _____ _________________, 2024, by and between the CITY OF SOUTH MIAMI, a Florida municipal corporation (“City”) and AVALON SOMI, LLC, a Delaware limited liability company (“Developer”). RECITALS: WHEREAS, the Developer is the owner of the real property located within the City which is more particularly described in the legal description attached hereto as Exhibit A (the “Property”); and WHEREAS, on August 10, 2023, the City and the Developer entered into the Second Amended and Restated Development Agreement (the “Development Agreement”) recorded in Official Records Book 33837, Page 419 of the Public Records of Miami-Dade County, Florida, to govern the development of the Property; and, WHEREAS, the Property is to be developed in substantial conformance with the plans entitled “South Miami Market” dated March 22, 2023 by Corwil Architects, together with supporting submittals, filed by the Developer and approved by the City Manager on June 23, 2023 as a minor modification to an approved site plan (the “Project”); and WHEREAS,during the negotiation of the Development Agreement the City and the Developer discussed certain potential additional streetscape improvements within SW 73 rd Street, between SW 59th Avenue and SW 58th Court, as shown more particularly on Exhibit B attached hereto (the “Potential Streetscape Improvement Area”); and, WHEREAS,the Parties recognize that unknown and complicating site conditions may exist within the Potential Streetscape Improvement Area the discovery of which could render it impossible or commercially unreasonable for the Developer to perform additional streetscape improvements within the Potential Streetscape Improvement Area; and, WHEREAS, the City intends that the costs associated with the potential additional streetscape improvements shall be cost neutral to the Developer and, to ensure same, the City agrees that the verifiable hard and soft costs for the potential additional streetscape improvements shall be credited against all Art in Public Places fees and contributions required under the City Code (the “AIPP Requirement”); and, WHEREAS, the Parties wish to enter into this Agreement to establish a process outside of the Development Agreement to explore the feasibility of certain additional streetscape improvements within the Potential Streetscape Improvement Area, and to construct certain streetscape improvements in the areas of the Potential Streetscape Improvement Area where feasible; and, NOW, THEREFORE, in consideration of the mutual covenants entered into between the City and Developer, and in consideration of the benefits to accrue to each, it is hereby agreed as follows: 6 2 1.Recitals. The above recitals are true and correct and are incorporated herein and made a part hereof. 2.Definitions. In addition to the defined terms that appear throughout this Agreement, the following terms shall be assigned the following meanings: (a)“Additional Streetscape Improvements” shall refer to those improvements proposed to Miami-Dade County and the City including, but not limited to sidewalk, curb, gutter, removal of existing on-street parking spaces, and landscaping on the north portion of the Potential Streetscape Improvement Area, adding one or more crosswalks at the intersection of SW 73rd Street and SW 59th Avenue within the Potential Streetscape Improvement Area. For clarity, undergrounding of utility lines within the Potential Streetscape Improvement Area (“Utility Undergrounding”) are not within the scope of the Additional Streetscape Improvements. (b)“Actual Cost of Improvements” shall refer to the hard and soft costs associated with the construction of the Additional Streetscape Improvements that are actually expended. (c)“Cost of Improvement Credit” shall refer to the Developer’s credit against the AIPP Requirement in an amount equal to all monies actually spent by the Developer developing the plans for and/or constructing the Additional Streetscape Improvements including but not limited to costs incurred for the associated civil engineering, survey work, utility surveys, sub-surface exploration costs, and similar costs. (d)“Estimated Cost of Improvements” shall refer to the hard and soft costs associated with the construction of the Additional Streetscape Improvements, as estimated by the Developer prior to the issuance of the permit approval for the Additional Streetscape Improvements. 3.The Process and Scope of Potential Additional Streetscape Improvements. The City Manager and the Developer hereby establish the following process for seeking approval of additional potential streetscape improvements within the Potential Streetscape Improvement Area and further defining the scope of the Additional Streetscape Improvements: (a)From January 1, 2024, through March 31, 2024, the Developer shall prepare civil plans for improvements to the Potential Streetscape Improvement Area and present such plans to Miami-Dade County and the City for permitting (the “Permit Application Submission”). Prior to March 31, 2024, the City shall have obtained all requisite signatures necessary for the Permit Application Submission. In the event the City fails to provide all necessary signatures by July 1, 2024, the Agreement and all obligations arising hereunder shall terminate without need for 7 3 further action by either party. (b)Following the Permit Application Submission, the Developer and the City shall cooperate in good faith to evaluate the cost feasibility of the Additional Streetscape Improvements given the status and condition of the right-of-way and private land holdings, and to pursue permits and approvals from all private parties and agencies with jurisdiction, provided all costs of plans preparation, pursuing approvals, and construction of the Additional Streetscape Improvements are borne by the Developer in accordance with sub-paragraph 2(c) below. In the event that the Developer does not obtain all of the permits and approvals necessary for the construction of the Additional Streetscape Improvements by December 31, 2025, (the “Permit Approval Deadline”) then this Agreement shall be null and void without any further action required by either party with no further obligation to either party. (c)If the Developer does not complete the Developer’s portion of the Permit Application Submission by March 31, 2024 (the “Submission Deadline”), then the Permit Approval Deadline as defined in sub-paragraph (3)(f) below shall be extended day for day until such time as the Developer is able to complete the Developer’s portion of the Permit Application Submission. For clarity, the Developer’s portion of the Permit Application Submission excludes: i) obtaining signatures from private party landowners within the Additional Streetscape Improvement Area authorizing the Developer to work on their private lands; ii) approval by the City authorizing the Developer to perform work on City land; and iii) approval from the City authorizing the Developer to perform work within City right-of-way. (d)The parties recognize the unique challenges posed by the potential unknown conditions and variables that could materially impact the Developer’s ability to construct the Additional Streetscape Improvements. In light of these unique challenges, the parties agree that the Developer may allocate the AIPP Requirement as follows: i. In the event that the Estimated Cost of Improvements exceeds $740,000, then the City and the Developer shall work together and in good faith for a period of sixty (60) days to value engineer the Estimated Cost of Improvements to $740,000 or less. If, after this sixty (60) day period the City and the Developer cannot mutually agree to value engineering or a reduced scope which reduces the Cost of Improvements to $740,000 or less, then the Agreement shall be terminated and of no further effect without any further action by either party. The City Manager is hereby delegated with the authority to accept or reject the value engineering or reduced scope identified within this sub-paragraph without need for City Commission Approval. ii. In the event that the Estimated Cost of Improvements is less than $740,000, then the Developer shall be authorized to allocate up to 8 4 $740,000 of the total cost of the AIPP Requirement to cover contingencies and/or unforeseen conditions (the “Reserves”). iii. If the Developer commences construction of the Additional Streetscape Improvements but does not conclude them prior to the issuance of the final certificate of occupancy for the Project, then the Developer at time of final certificate of occupancy shall provide the City with a letter of credit as more particularly described in paragraph 5 below for the amount of the unspent Estimated Cost of Improvements plus Reserves (the “Letter of Credit Amount”) which may be used if the Developer does not complete the construction of the Additional Streetscape Improvements on or before the 12-month anniversary of the issuance of the final certificate of occupancy (the “Outside Completion Date”). The City agrees to release the letter of credit upon completion of the Additional Streetscape Improvements so long as such completion occurs prior to the Outside of Completion Date. (e)As a material component of this Agreement, the City must possess and delegate to the Developer the authority to improve and alter the private lands and right-of-way as necessary for the construction of the Additional Streetscape Improvements no later than December 31, 2025. In the event that the City cannot obtain and delegate to the Developer the authority to improve and alter the private lands and right-of- way by December 31, 2025, then the Developer’s obligation to construct the Additional Streetscape Improvements shall terminate without any further obligation whatsoever. 4.Construction, Costs, and Credits Associated with the Additional Streetscape Improvements (a)Developer shall retain and control the design professionals and contractor(s) for the Additional Streetscape Improvements, and shall solely bear the risk of the Actual Cost of Improvements exceeding the AIPP Requirement. The Developer shall not be entitled to a refund if the Actual Cost of Improvements exceeds the AIPP Requirement. The Developer shall be entitled to the Cost of Improvement Credit whether or not the Additional Streetscape Improvements are actually constructed. (b)Upon obtaining all required governmental approvals, the Developer agrees to use commercially reasonable efforts to diligently complete the Additional Streetscape Improvements within a commercially reasonable period of time. For the avoidance of doubt, the issuance of the Project’s temporary certificate of occupancy and final certificate of occupancy shall not be conditioned upon the completion of the Additional Streetscape Improvements. (c)The Developer shall be entitled to a Cost of Improvement Credit against the AIPP Requirement, and due from Developer at final certificate of occupancy pursuant to sub-paragraph 6(m) of the Development Agreement. 9 5 5.Reconciliations & Letter of Credit Conditions The Developer and the City shall reconcile the Cost of Improvement Credit, any remaining obligations with respect to the AIPP Requirement, and other related fees and costs to determine the amount of the Developer’s remaining financial obligations under this Agreement, if any, depending on the circumstances outlined below: (a)In the event that this Agreement terminates without the commencement of construction of the Additional Street Scape Improvements, then Reconciliation shall occur within sixty (60) days of the termination date. (b)In the event that the Developer commences and completes construction on the Additional Streetscape Improvements prior to receiving a final certificate of occupancy for the Project the Reconciliation shall occur within sixty (60) days of the receipt of the certificate of completion or like instrument memorializing the completion of the Additional Streetscape Improvements. (c)In the event Developer commence and completes construction on the Additional Streetscape Improvements after receiving a final certificate of occupancy for the Project but before the Outside Completion Date two reconciliations shall occur shall occur as follows: a. A preliminary Reconciliation shall occur to determine the Letter of Credit Amount prior to the issuance of the final certificate of occupancy for the Project. b. A final Reconciliation shall occur within sixty (60) days of the receipt of the certificate of completion or like instrument memorializing the completion of the Additional Streetscape Improvements. (d)In the event that the Developer commences construction, but does not complete construction by the Outside Completion Date, then the Reconciliation shall occur within sixty (60) days of the Outside Completion Date. Within ten (10) business days of the conclusion of the Reconciliation, the Developer shall cause a line of credit to be placed in escrow with First American Title Insurance Company in the Reconciliation Amount. The Developer shall have two (2) years from the date the Reconciliation Amount is placed in escrow to satisfy any remaining obligation arising under the AIPP Requirement. 6.Streetscape Improvements Otherwise Required Not Affected. Nothing herein shall be construed to limit or reduce the scope of right-of-way improvements within the vehicular travel lanes and on the south side of SW 73rd Street adjacent to the Project, and in other rights-of-way adjacent to the Project, as those may be contemplated or required pursuant to the City’s Code of Ordinances, the Land Development Code, general law, the Large Scale Development approval, the site plan approval, modifications to the site plan approval, the Building Permit or other permit, and the Development Agreement. 10 6 7.Notice. All notices, demands, requests and/or other communications required under this Agreement must be given in writing and may be delivered by three types of physical delivery, i.e., (i) hand delivery, with a receipt signed by the party receiving such delivery, (ii) a nationally recognized overnight delivery service providing delivery confirmations, or (iii) certified mail, postage prepaid, return receipt requested; or in lieu of physical delivery it may be delivered by Electronic Communication. Notice will be deemed to have been given upon receipt or refusal of delivery or the failure of delivery due to the receiving party no longer occupying or maintaining both the physical and Electronic Communication address provided in this Section. All notices, demands, requests and other communications required under this Agreement using Electronic Communication must be followed up by physical delivery if the Electronic Communication does not provide a receipt for delivery. It is the duty of the parties to advise each other of any change of address. Any party may designate a change of address by written notice to the other party, received by such other party at least ten (10) days before the change of address is to become effective. a.Notice to Developer. Notice or communication to Developer under this Agreement must be sent to: Avalon Somi, LLC 200 E Broward Blvd, Suite 1400 Fort Lauderdale, FL 33301 Attention: Micah Conn, Senior Vice President of AvalonBay Communities, Inc. With a copy to: AvalonBay Communities, Inc. 4040 Wilson Avenue, Suite 1000 Arlington, VA 22203 Attention: Legal Department b.Notice to City. In the case of a notice or communication to the City under this Agreement must be sent to: City of South Miami 6130 Sunset Drive South Miami, Florida 33143 Attention: City Manager With a copy to: City Attorney City of South Miami Weiss Serota Helfman Cole & Bierman, P.L. 2800 Ponce de Leon Blvd, Suite 1200 Coral Gables, Florida 33134 11 7 Attn: Lillian Arango and Tony Recio, City Attorneys With copy by email at larango@wsh-law.com and trecio@wsh-law.com. and City Clerk 6130 Sunset Drive South Miami, Florida 33143 Attention: City Clerk 8.Miscellaneous Provisions. (a)Not A Development Agreement. This Agreement is not a development agreement, and is independent of, and shall not be construed as an amendment or modification to, the Development Agreement. (b)No Partnership or Joint Venture. It is mutually understood and agreed that nothing contained in this Agreement is intended nor may it be construed in any manner or under any circumstances whatsoever as creating or establishing the relationship of co-partners, or creating or establishing the relationship of a joint venture between the City and Developer, or as constituting Developer as the agent or representative of the City for any purpose or in any manner whatsoever. Nothing contained in this Agreement shall be construed or deemed to name, designate, or cause (either directly or implicitly) the Developer, or any contractor of the Developer to be an agent of or in partnership with the City. (c)Florida and Local Laws Prevail. This Agreement is governed by the laws of the State of Florida. This Agreement is subject to and must comply with the Charter of the City of South Miami as the same is in existence as of the execution of this Agreement and the ordinances of the City of South Miami; provided, however, future ordinances of the City will not affect the terms and provisions of this Agreement (i) unless uniformly applicable to property similarly situated with the Property and Project; provided, however, to the extent Developer would otherwise be grandfathered or not subject to such ordinances if this Agreement did not exist, Developer will not be subject to such ordinances or (ii) if the same impairs the rights of Developer or the obligations of the City hereunder. Subject to the foregoing, any conflicts between this Agreement and the aforementioned Charter and ordinances will be resolved in favor of the latter. If any term, covenant, or condition of this Agreement or the application thereof to any person or circumstances will to any extent, be illegal, invalid, or unenforceable because of present or future laws or any rule or regulation of any governmental body or entity or becomes unenforceable because of judicial construction, the remaining terms, covenants and conditions of this Agreement, or application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, will not be affected thereby and each term, covenant, or condition of this Agreement will be valid and be enforced to the fullest extent permitted by law. 12 8 (d)Conflicts of Interest: City Representatives Not Individually Liable. No commission member, official, representative, or employee of the City or the City Manager may have any personal interest, direct or indirect, in this Agreement, nor may any such commission member, official, representative or employee participate in any decision relating to this Agreement which affects his or her personal interest or the interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested. No commission member, official, elected representative or employee of the City or the City Manager may be personally liable to Developer or any successor in interest in the event of any default or breach by the City or the City Manager or for any amount which may become due to Developer or successor or on any obligations under the terms of the Agreement. (e)Counterparts. This Agreement may be executed in counterparts, each of which are deemed an original, and such counterparts will be constitute as one and the same instrument. This Agreement only becomes effective upon execution and delivery of this Agreement by the parties hereto. (f)Successors and Assigns. Except to the extent limited elsewhere in this Agreement, all of the covenants, conditions and obligations contained in this Agreement run with the land and are binding upon and inure to the benefit of the respective successors and assigns of the City and the Developer. An assignment shall not release Developer from its obligations under this Agreement unless an amendment to this Agreement relieving Developer of one or more obligations hereunder is executed and recorded as provided in Section 11(g) of this Agreement. The City Commission shall not be obligated to approve an assignment or otherwise be relieved of its obligations in this Agreement. (g)Entire Agreement. This Agreement and its Exhibits constitute the sole and only agreement of the parties hereto with respect to the subject matter hereof and correctly set forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect and are merged into this Agreement. Notwithstanding the foregoing, this Agreement shall not be construed to amend or release any portion of the Development Agreement. (h)Amendments. No amendments to this Agreement are binding on either party unless in writing and signed by both parties. Amendments, modifications or releases of this Agreement are only binding if they are by mutual written agreement between: (a) the City Commission or its successors and assigns (which must be a governmental entity); and (b) Developer or its successors and assigns that are expressly designated in writing as receiving the rights and obligations of Developer under this Agreement (“Express Assigns”) (i.e., even if the Property is subdivided and more than one (1) owner exists for the Property, then amendments to this Agreement only need to be executed by the City and Developer or its Express Assigns); provided, however, that in the event that any amendment, modification or release of this Agreement materially affects the rights of an owner of a portion of the Property, then any amendment to this Agreement must also require the consent of such property owner. 13 9 In the event of a modification of this Agreement or a designation of an Express Assign, a written instrument must be duly executed, acknowledged, and recorded in the Public Records of Miami-Dade County, Florida. The parties recognize that the development and operation of the Property and the Project may from time to time require the confirmation, clarification, amplification, or elaboration of this Agreement, in order to deal adequately with circumstances which may not now be foreseen or anticipated by the parties. The City Commission and Developer reserve unto themselves and their Express Assigns the right to enter into such interpretive, implementing or confirmatory written agreements from time to time as they mutually deem necessary or desirable, in their sole discretion, for any such purpose without obtaining the consent or approval of any person or entity. If any portion of the Property has been submitted to the condominium form of ownership, and an amendment, modification or release of this Agreement requires the consent of the owner of such portion of the Property as provided above, then only the condominium association thereof will be required to execute the instrument as to that portion of the Property (in lieu and on behalf of the condominium unit owners thereof). (i)Authorization and Approvals by the City. All requests for action or approvals by the City must be delivered to the City Manager, who is the only party within the City, including the City Commission, with the authority to act or approve the matter on behalf of the City, except for those matters that the City Manager is required by law to obtain City Commission approval. Without limiting the generality of the foregoing or the general authority of the City Manager, the City Manager has the authority to grant extensions of time for performance by Developer for up to ninety (90) days (extensions of time in excess of ninety (90) days must be approved by the City Commission). If the City Manager’s office is vacant or if the City Manager does not have the full authority to act or approve matters required of the City pursuant to this Agreement, then the City Commission will, promptly upon written request by the Developer, and through its regular enactment procedures, designate such other officer or department as may be appropriate to perform the City’s obligations. Nothing contained herein or in this Agreement authorizes the City Manager to amend any of the terms of this Agreement. (j)Exculpation. Notwithstanding any provision contained in this Agreement to the contrary, it is specifically agreed and understood that there is no personal liability on the part of any manager, member in the Developer (provided such member is acting within the limitations placed on same by Florida law or has not assumed in writing any greater liability with respect to this Agreement), an equity interest holder of a member in the Developer or, if the Developer is a corporation, of any officer, director or stockholder of the corporate Developer or, if the Developer is a partnership, any limited partner of the Developer, with respect to the performance of any of the obligations, terms, covenants and conditions of this Agreement. (k)Caption. The article and section headings and captions of this Agreement and the table of contents preceding this Agreement are for convenience and reference 14 10 only and in no way define, limit, describe the scope or intent of this Agreement or any part thereof, or in any way affect this Agreement or any part thereof. (l)Days, Holidays. References to “days” in this Agreement shall mean calendar days. Whenever a notice or performance under the terms of this Agreement is to be made or given on a Saturday or Sunday or on a legal holiday observed in the City, it will be postponed to the next following business day, not a Saturday, Sunday, or legal holiday. (m)No Liability for Approvals and Inspections. Except as may be otherwise expressly provided herein, no approval to be made by the City of the Project site or the Project under this Agreement, may render the City liable for its failure to discover any defects or nonconformance with any federal, state, or local statute, regulation, ordinance, or code. (n)Developer Entity. On the date of execution hereof, the Developer is a Delaware limited liability company. In the event that at any time during the term of this Agreement and any extensions and renewals thereof, the Developer is a corporation or an entity other than a Delaware limited liability company, then any references herein to member, membership interest, manager and the like which are applicable to a Delawarelimited liability company will mean and be changed to the equivalent designation of such term which is appropriate to the nature of the new Developer entity. (o)Cooperation; Expedited Permitting; and Time is of the Essence. The Parties agree to cooperate with each other to the full extent practicable pursuant to the terms and conditions of this Agreement. The Parties agree that time is of the essence in all aspects of their respective and mutual responsibilities pursuant to this Agreement. The City will use its best efforts to expedite the permitting review and approval process in an effort to assist the Developer in meeting its demolition, development, and construction completion schedules. The City will accommodate requests from the Developer’s agents, representatives, general contractor(s), and subcontractors for simultaneous review of multiple permitting packages, such as those for site work and foundations, and building shell, core, and interiors. Notwithstanding the foregoing, the City is not obligated to issue development permits to the extent the Developer does not comply with the applicable requirements of the Code, LDC, the Existing Approvals, the Comprehensive Plan, this Agreement, applicable building codes, or any other applicable laws, rules, orders, or regulations. The failure of the Agreement to address a permit, condition, term, or restriction shall not relieve Developer of the necessity of complying with the law governing said permitting requirements, conditions, term, or restriction. (p)Severability. If this Agreement contains any unlawful provisions not an essential part of this Agreement and which do not appear to have a controlling or material inducement to the making thereof, such provisions will not have any effect and will be stricken from this Agreement without affecting the binding force of the remainder. In the event any provision of this Agreement is capable of more than 15 11 one interpretation, one which would render the provision invalid and one which would render the provision valid, the provision will be interpreted so as to render it valid. (q)Approvals and Consents. Wherever in this Agreement the approval or consent of any party is required, and except as otherwise specified, such approval or consent will not be unreasonably withheld or delayed. (r)Sovereign Immunity. Nothing in this Agreement shall be deemed or otherwise interpreted as waiving the City’s sovereign immunity protections existing under the laws of the State of Florida, or as increasing the limits of liability as set forth in Section 768.28, Florida Statutes. (s)Non-Discrimination. No covenant, agreement, lease, conveyance or other instrument concerning the sale, lease, use or occupancy of the Project or any portion thereof shall be affected or executed by Developer, or any of its successors or assigns, whereby the Project or any portion thereof is restricted by Developer, or any successor in interest, upon the basis of race, color, religion, sex, national origin, or handicap. Developer will comply with all applicable state and local laws, in effect from time to time, prohibiting discrimination or segregation by reason of race, color, religion, sex, national origin, or handicap in the sale, lease, use or occupancy of the Project or any portion thereof. Furthermore, Developer agrees to make accommodations for the handicapped as required by law and that no otherwise qualified handicapped individual shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, be denied access to facilities within the Project or be subjected to discrimination under any program or activity allowed under this Agreement except as permitted by law. (t)Agency Status. In the event of an amendment to this Agreement pursuant to Section 3(a) for the construction of Additional Improvements, the City appoints Developer as its agent and Developer agrees to act for the City concerning the construction of Additional Improvements. The City shall have control over the actions of the Developer regarding such construction. Developer shall, therefore, be deemed a state agency or subdivision pursuant to section 768.28(2), Fla. Stat. entitled to all rights, privileges, and/or immunities of a state agency or subdivision as defined in Section 768.28, Florida Statutes, including but not limited to the protections of sovereign immunity. Notwithstanding anything to the contrary herein, any potential liability of the Developer, and its defense of any such claim and its associated costs (including but not limited to attorneys’ fees, judgments, and court costs), shall be wholly independent of the City, and nothing herein shall be construed as imposing an obligation on the City to indemnify or defend the Developer in any action. Nothing herein is intended, nor shall it be construed to establish an employment relationship. [SIGNATURE PAGES TO FOLLOW] 16 12 WITNESSES By: _______________________________ Signature of Witness # 1 _______________________________ Print or type name By: _______________________________ Signature of Witness # 2 _______________________________ Print or type name DEVELOPER: AVALON SOMI, LLC, a Delaware Limited Liability Company By: _______________________________ Micah Conn, as Senior Vice President of AVALONBAY COMMUNITIES, INC. (a Maryland Corporation), the latter of which is the manager and sole member of AVALON SOMI INVESTOR, LLC (a Delaware Limited Liability Company), the manager and sole member of AVALON SOMI, LLC (a Delaware Limited Liability Company) STATE OF __________________________ COUNTY OF The foregoing instrument was acknowledged before me this day of __________, 20__, by Micah Conn, as Senior Vice President of AVALONBAY COMMUNITIES, INC.(a Maryland Corporation), the latter of which is the manager and sole member of AVALON SOMI INVESTOR, LLC (a Delaware Limited Liability Company), which is the manager and sole member of AVALON SOMI, LLC (a Delaware Limited Liability Company), who is personally known to me or who has/have produced as identification and who did take an oath and who swore or affirmed that he signed this Agreement on behalf of AVALON SOMI, LLC, that he is authorized to sign this Agreement by AVALONBAY COMMUNITIES, INC., the manager and sole member of AVALON SOMI INVESTOR, LLC,andhe is authorized to sign this Agreement by AVALON SOMI INVESTOR, LLC,the manager and sole member of AVALON SOMI, LLC. Signature of Notary (NOTARY SEAL) Print or type name 17 13 ATTESTED:CITY OF SOUTH MIAMI By: ____________________By: ________________________ Nkenga A. Payne, CMC Genaro “Chip” Iglesias City Clerk City Manager Read and Approved as to Form, Language, Legality and Execution Thereof: By: ________________________ Weiss Serota Helfman Cole & Bierman P.L. Anthony L. Recio City Attorney STATE OF FLORIDA COUNTY OF MIAMI-DADE The foregoing instrument was acknowledged before me this day of ___________, 2023, by Genaro “Chip” Iglesias, City Manager, who is personally known to me and acknowledge executing the same freely and voluntarily under authority vested in herby the City of South Miami. Signature of Notary (NOTARY SEAL) Print or type name 18 14 EXHIBIT A LEGAL DESCRIPTIONOF PROPERTY The land referred to herein below is situated in the County of Miami-Dade, State of Florida, and is described as follows: Lots 23 through 32, inclusive, LESS the North 10 feet of Lot 23; the West 5 feet of Lots 23, 24, 25, 26 and 27; the East 5 feet of Lots 28, 29 and 30; the East 5 feet of Lots 31 and 32 and the North 10 feet of Lot 32, W.A. LARKIN’S SUBDIVISION according to the Plat thereof, as recorded in Plat Book 3, Page 198, of the Public Records of Miami-Dade County, Florida. 19 15 EXHIBIT B POTENTIAL STREETSCAPE IMPROVEMENT AREA 20