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01-17-01Chair Vice Chair. Member Member Member Member Member Julio Robaina CRA General Counsel John Dellagloria Horace G. Feliu CRA Executive Director Charles D. Scurr Mary Scott Russell CRA'Director Gregory J. Oravec David D. Bethel CRA.Secretary Ronetta Taylor Randy G. Wiscombe James Bowman Charete B. Plummer SOUTH, MIAMI COMMUNITY "RE DEVE,LOPMENT. AGENCY CRA Meeting Meeting date: January 17, 2001 Sunset Drive, South.M.iami, FL Next Regular Meeting Date: February 5, 2001 Phone: (305) 663 -6338 Time: 6:30 PM City 'of. South Miami Ordinance No. 10 -00 -1712. requires all lobbyists before engaging in any lobbying activities to register with. the City Clerk and pay an annual fee of $125.00. This applies to all persons who are retained '(whether paid or not) to represent a business entity or organization to influence "City" action. "City" action is broadly described: to include the ranking and selection of professional consultants, and virtually all- legislative, quasi- judicial and administrative, action..' It does not. apply. to - not -for- profit organizations; local chamber and- merchant groups, homeowner associations, or trade associations and unions. CALL TO ORDER: 1. ROLL CALL: 2. INVOCATION• 3. PLEDGE OF ALLEGIANCE:. COMMUNITY REDEVELOPMENT AGENCY 1 AGENDA - January 17, 2000 ITEMS FOR THE BOARD'S CONSIDERATION 4. Approval of Minutes. Regular,CRA Minutes - December 4, 2000 5. CRA Director's Report: 6. CRA-General Counsel's Report: CONSENT AGENDA There are no items for consideration. RESOLUTION(S) (For. Public' Hearing) 7. A RESOLUTION OF'THE SOUTH 'MIAMI COMMUNITY REDEVELOPMENT AGENCY (SMCRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE THE PURCHASE OF THE PROPERTY, LOCATED. -AT' 5825 SW 68th STREET �PfAKf,PI `PtfAf1� TAKE ryNDri�f ^` 1yAT�lfl1'�DN?i1111�1CI1 D,f {�slyf 5(DDf °dl D,PD�NANtff P,PDyiDfl TyAT`ANY °Pf,PlONMAK�NG Pf,PIDA� ;irPf�T�NfNT OQ f ANDf,PMU A[ mpg em t,' Wy�lf ADD fffrNG 1yf IDMrrIrON lyAt * B fDQ1yWiy BA,P,PfDf,POM fU,PTyfQ AUD�fNIf BffD,Pf Tyf OWN, BY T f.P,Pff�D�NG Offilf,P, �UN�fIf Pf,PM IliON 1"D aONTrNUf Bf�G,PANTfD B,YA t�AD,Pi� Y'�D,Tf:O' Tyf IDtMlfiDN" PUBLIC COMMENTS BOARD COMMENTS ADJOURNMENT PURSUANT TO FLA STATUTES 286.0105, "THE CITY HEREBY ADVISES THE PUBLIC THAT IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THIS BOARD, AGENCY OR COMaSSION WITH RESPECT TO ANY MATTER CONSIDERED AT ITS MEETING OR HEARING, HE OR SHE WILL NEED A ' RECORD OF THE PROCEEDINGS, AND THAT FOR '.SUCH PURPOSE, AFFECTED PERSON MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE WHICH RECORD INCLUDES THE ,TESTIMONY AND EVIDENCE UPON WHICH.THE APPEAL IS TO BE BASED. THIS NOTICE DOES NOT CONSTITUTES CONSENT BY THE; CITY FOR THE INTRODUCTION OR. ADMISSION OR OTHERWISE INADMISSIBLE OR -IRRELEVANT EVIDENCE, NOR DOES IT AUTHORIZE CHALLENGES OR APPEALS NOT OTHERWISE ALIAWED BY LAW. COMMUNITY REDEVELOPMENT'AGENCY 2 AGENDA - January 17, 2000 SOUTH MIAMI COMMUNITY 'REDEVELOPMENT AGENCY INTER- OFFICE MEMORANDUM To: Honorable Chairperson Date: December 29, 2000 and CRA Board From: Gregory J. Oravec Subject: Meeting 1/17/01 —_.7_ Director Negotiate to urchase 5825 SW 68 Street REQUEST CI l-P LC0Y6kb CQlAb - A Y-tE wC SC,c -Q 1Z C Fp2.T-t� 4 J1V.�G is 'tbU A RESOLUTION OF THE SOUTH MIAMI COMMUNITY ' REDEVELOPMENT AGENCY (SMCRA) AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE THE PURCHASE OF THE PROPERTY LOCATED AT 5825 SW 68 STREET. BACKGROUND & ANALYSIS The attached map (Attachment "A ") demonstrates that the property is bordered to the north and west by the City of South Miami's Murray Park, to the east by an office building and to the south by SW 68`" Street. Along with Murray Park, the property is just. east of the geographic center of the South Miami Community, Redevelopment Area. The subject property is approximately. 18,375 square feet in size and is improved with an approximately 6,528 square foot office /warehouse building which was constructed in 1983. The building is divided into four bays. Each bay is separated internally by a concrete block wall and has its own ingress /egress. Each bay is currently. leased to a private tenant. The attached resolution serves to allow the Executive Director to negotiate the purchase of 5825 SW 68th Street (the "Mobley" Property) per an agreement substantially in -the form of Exhibit "l." It is important to note that any agreement resulting from negotiations would return to the Board for. approval. The draft offer for the property is the, result of several months of discussion between Mr. Alan Dale Mobley, property owner, and SMCRA staff.. Discussion originally began with a proposal to swap the subject property for the City's inspection station site: This proposal was received with much interest because it would have 1) resulted in new development in the Redevelopment; Area (Inspection Station is located, on SW 701h Street); 2) made additional landibuilding space available for Phase II of the Multipurpose Center;. 3) provided office space for the SMCRA; and '4) significantly enhanced the SMCRA's economic development initiatives by providing flexible building space for a business incubator. As discussions between Mr. Mobley and. SMCRA staff progressed,. Mr. Mobley decided against proceeding with the swap, but expressed his interest in selling the subject property to the SMCRA outright. Although the outright purchase would not directly trigger redevelopment on the City's old" inspection site, it would be extremely beneficial to the SMCRA, City and, most importantly, the community. The purchase of the subject property would result in the.following significant benefits: Park Improvements As the City _of. South. Miami's Consultant, MC Harry Associates, has progressed through. its master planning of Phase II- of the. Multipurpose Center at Murray Park, the benefits of acquisition of the subject property have become increasingly evident. The purchase and inclusion of the subject property in . the park campus would, result in several design enhancements. It would facilitate the construction of a swimming pool (a community dream), allow a significant portion of the Parks & Recreation administrative space to be moved out of the Gymnasium" Building, thereby maximizing programming space, increase`on -site parking, allow additional recreational programming such as the warm -up track and provide for better buffering of the park from the surrounding residential uses. Economic Development The SMCRA Board has. already initiated the SMCRA's economic development initiatives by approving MicroBusiness USA (formerly known as Working Capital Florida). MicroBusiness USA provides the teaching and start-up capiEf necessary to launch small businesses. Most of .the business owners begin at home, but where do the fledgling businesses go as their businesses expand? There are zoning regulations against home businesses, and the South Miami and Miami -Dade County real estate markets are too expensive for these fledgling businesses. The 6,528 square foot office /warehouse building provides excellent space for a small -scale business incubator. The four bays and the building's 22 -foot ceilings can accommodate a variety of businesses simultaneously, allowing the SMCRA to offer fledgling businesses a place to grow. Through this incubator, the SMCRA will greatly enhance economic development in the Redevelopment Area and surrounding community. SMCRA Office Location Although it is slightly east of the. geographic center of the neighborhood, if the property is integrated into the Murray Park site, it will be at' the heart of the community. The. proposed Phase II master plan includes SMCRA office space in a new administrative annex to the Mobley building,' giving the SMCRA office space and a presence in the very heart of the community it strives to serve. Additionally, the SMCRA office space would be collocated with the Parks & ,Recreation Department. - The. City has agreed to provide the SMCRA much -need office support through the Parks & Recreation Department. FY. 2000 72001 Goal 2: Clearly demonstrate the potential of the Agency and of the Community.: This goal states that the SMCRA must clearly demonstrate the potential of the Agency to greatly .enhance the quality of life in the CRA Area —and of the Community , to be a dynamic, prosperous community with a high quality of life and high levels'of municipal service -by focusing on CRA projects and, or, programs which represent longstanding .dreams of the community. Phase II of the Multipurpose Center, a. swimming pool and local businesses —all dreams and hopes of the Redevelopment Community, all can be significantly assisted through the SMCRA's purchase of the subject property. The purchase would undeniably demonstrate that the Agency can help the community realize its dreams and improve the quality of life. Staff proposes to realize the above - described benefits at a fair market value. The proposed agreement offers a purchase price of $430,000, which is the appraised fee simple market value of the property as, determined by William John Eisnor, Jr., SRA, SRPA, MAI, a certified property appraiser in the State of Florida. A summary of the property appraisal is attached as Attachment "B." The proposed Resolution would allow the Executive Director to negotiate an agreement for this price or one within 10% of this price and pursuant to other terms.which do not substantially deviate. from Exhibit "1." Other than purchase price, it is important to note that the agreement contemplates the SMCRA taking a mortgage from a lending institution on the property and paying the balance within five years. This is only one funding option, and the SMCRA is working with the City to evaluate other,. more favorable, funding options such as the Sunshine Loan Fund. Thus, the mortgage serves to provide baseline data for analysis. The anticipated range of monthly payments for a five -year, mortgage. on the property is included as Attachment "C." The SMCRA's monthly payment would be approximately $8,650, or $103,800 per year, for the next five years. If the SMCRA is successful in working with the City. to secure funding from the Sunshine Loan Fund, .the debt service and payments will be significantly lower. The SMCRA has appropriated $105,000 in, its FY 2000 -2001 Budget for land acquisition and anticipates a similar or higher appropriation in future years. Additionally, the cost of the mortgage could be mitigated through the lease revenues of the building (currently, 100% leased) or grant funding. Therefore, the SMCRA has the fiscal ability to acquire the subject property. If the property owner. and SMCRA staff agree to terms, staff will present a detailed financial report, financing contract and Contract to Purchase to the Board. Given the anticipated benefits, location and willingness of the seller, the purchase of the subject property represents an excellent opportunity for the SMCRA to profoundly impact the Redevelopment Area in a positive manner. RECOMMENDATION Your approval is recommended. I - Appraisal Ol iislon snou. REALTORS W.J,Ei$nOr Jr „SRA, MAI Casey D.Eisnor, SRA August 29; 2000 Gregory J. Oravec Assistant to the City Manager Interim CRA Director City of South Miami 6130 Sunset Drive South Miami, Florida 33143 RE: A ground level four bay industrial building Located at: 5825 SW 68 Street South Miami, Florida As of August 29, 2000 Dear Mr. Oravec: Upon your authorization, I have conducted the investigations and analyses necessary to form an opinion of 'the value of the fee simple interest in the ground level four bay industrial building located at 5825 SW 68 Street, South Miami, Florida. The subject is currently leased to three tenants but at the request of the client no. consideration for the current ]cases is being made. The leases may be below market and may have an effect on the value of the subject property depending on the length of the lease but the leases are not being analyzed in this report. Therefore, this is.a hypothetical report which is being completed as if the. property were vacant and available for occupancy, It has' a total of approximately 6,528 sq. ft. of building area according to measurements completed by the undersigned. It is situated on a 18,375 sq. R. site. A legal description of the subject property is contained in the identification section of this report. The opinions set forth in this report are stated as of August 29, 2000, the date of inspection. The term "market value” is defined as: the most probable price estimated in terms of money which the. property is expected to bring, if exposed for sale in the Open Market by a willing seller to a willing buyer, neither being under duress and having full knowledge of the uses and purposes of the property, and having the property exposed to the market a reasonable length of time.. 2 14352 S.W, 142nd Avenue • Miami, Florida 33186 . • Phone (305)233 -4453 Fax (305) 235 -4128 Appraisal Divislon VJ.J.Eisnor Jr.,SRA, MAI NS rINC. RE+uoas Case D.Eianor, SRA V A more detailed. definition of market value can be found in the nature of the assignment section of this report. The analyses and opinions in this appraisal are subject to the following premises, assumptions, and limitations: I This is a complete self contained appraisal report as defined by, the Uniform Standards. of Professional Appraisal Practice. This means that no departures from Standard l were invoked. The subject property -was appraised on a fee simple basis. No chattel' property or trade fixtures are being valued in this appraisal report. The subject improvements are being used as an, industrial storage and manufacturing facility. This type of operation probably does involve the use of hazardous materials. All prior uses of the site are unknown. The undersigned has no expertise in the determination of environmental threats, therefore, the user, of this report is urged to obtain the applicable reports which would be satisfactory to DERM, (Department of Environmental Resource Management). In the event that significant environmental problems are discovered on the site the value of the property will diminish (at least) in direct relation to the cost of the cleanup. This appraisal report was prepared for the internal needs of the City of South Miami, who ordered the report for the purpose of determining a market value to use in the exchange of the subject site for other property and may not be suitable for other uses. An appraisal provides an unbiased estimate of the value and should be considered in its entirety. The value' contained in the appraisal report is as of a certain date and this value may' be affected by events subsequent to that date. Further, the appraisal is subject to the statement of limiting conditions and appraiser's certification. 3 14352 S.W. 142nd Avenue ► Miami, Porida 33186 Phone (305) 233 -4453 Fax (305) 23 , -1128