Ratify settlement agreement for riverfront property eminent domain case

AGENDA ITEM SUMMARY FORM File ID: #17211 Date: 02/04/2025 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 02/13/2025 Sponsored By: District Impacted: District 3 Type: Resolution Subject: Execute Settlement Agrnmt - Garafia LLC - Riverfront Property Purpose of Item: A Resolution of the Miami City Commission, by a four-fifths (4/5ths) affirmative vote, with attachment(s), ratifying, approving, and confirming the executed Settlement Agreement for eminent domain Case No. 21-027229-CA-01 (“Settlement”) and the incorporated Purchase and Sale Agreement ("Purchase Agreement"), attached and incorporated as Exhibit “A”; authorizing and approving the condition precedent to the effectiveness of the Purchase Agreement contained in sections 4 and 5 of the Purchase Agreement to authorize an increase in cost by Eight Hundred and Forty-Seven Thousand Dollars ($847,000.00) for a revised purchase price equal to Nine Million Eight Hundred and Forty-Seven Thousand Dollars ($9,847,000.00) ("Purchase Price") for the acquisition of real property identified by Folio Numbers 01-4102-006- 6450, 01-4102-006-6460, 01-4102-006-6470, 01-4102-006-6480 and 01-4102-006-6490 located in Miami, Florida (collectively, "Alternative Property"), for a total amount not to exceed Eleven Million Seven Hundred Forty Thousand Dollars ($11,740,000.00) for the Settlement of the case and acquisition of the Alternative Property, to cover the cost of said Settlement and acquisition, including but not limited to the Purchase Price, benefits-based attorney’s fees, expert fees, litigation costs, surveys, environmental reports, title insurance, demolition, securing the property, project signage and all related closing costs associated with said acquisition, in accordance with the terms and conditions of the Settlement and Purchase Agreement, with all such funding subject to compliance with all federal, state, and local laws that regulate the use of such funds for said purposes; the increased cost of Eight Hundred and Forty-Seven Thousand Dollars ($847,000.00) shall be allocated from ___________. Background of Item: The City of Miami (“City”) pursuant to Resolution No. R-21-0177, pursuant to Resolution R-25- 0021, the City of Miami (“City”) executed a Settlement Agreement for the eminent domain Case No. 21-027229-CA -01and the incorporated Purchase and Sale Agreement ("Purchase Agreement"), attached and incorporated as Exhibit “A”. As a condition precedent to the effectiveness of the Purchase Agreement contained in sections 4 and 5 of the Purchase Agreement an increase in cost by Eight Hundred and Forty-Seven Thousand Dollars ($847,000.00) for a revised purchase price equal to Nine Million Eight Hundred and Forty-Seven Thousand Dollars ($9,847,000.00) ("Purchase Price") for the acquisition of real property identified by Folio Numbers 01-4102-006-6450, 01-4102-006-6460, 01-4102-006-6470, 01- 4102-006-6480 and 01-4102-006-6490 located in Miami, Florida (collectively, "Alternative Property"). The total amount shall not exceed Eleven Million Seven Hundred Forty Thousand Dollars ($11,740,000.00) for the Settlement of the case and Purchase Agreement for the acquisition of the Alternative Property, to cover the cost of said Settlement and Purchase Agreement, including but not limited to the Purchase Price, benefits-based attorney’s fees, expert fees, litigation costs, surveys, environmental reports, title insurance, demolition, securing the property, project signage and all related closing costs associated with said acquisition, in accordance with the terms and conditions of the Settlement and Purchase Agreement, with all such funding subject to compliance with all federal, state, and local laws that regulate the use of such funds for said purposes. The increased cost of Eight Hundred and Forty-Seven Thousand Dollars ($847,000.00) shall be allocated from_________. Budget Impact Analysis Item is an Expenditure Item is NOT Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: Total Fiscal Impact: $11,740,000.00 Reviewed By Department of Real Estate and Asset Management Andrew Frey Department Head Review Completed 02/04/2025 12:21 PM Office of Management and Budget Pedro Lacret Budget Analyst Review Completed 02/04/2025 2:25 PM Office of Management and Budget Marie Gouin Budget Review Completed 02/04/2025 3:22 PM City Manager’s Office Larry M. Spring Assistant City Manager Completed 02/04/2025 5:15 PM City Manager’s Office Natasha Colebrook-Williams Deputy City Manager Review Completed 02/04/2025 6:20 PM City Manager’s Office Mabel Betancourt City Manager Review Skipped 02/04/2025 3:18 PM Legislative Division Valentin J Alvarez Legislative Division Review Completed 02/04/2025 6:23 PM Office of the City Attorney Jacqueline Lorenzo ACA Review Completed 02/04/2025 7:33 PM Office of the City Attorney George K. Wysong III Approved Form and Correctness Completed 02/04/2025 8:50 PM City Commission Todd B. Hannon Meeting Pending 02/13/2025 9:00 AM City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com City of Miami Legislation Resolution File Number: 17211 Final Action Date: A RESOLUTION OF THE MIAMI CITY COMMISSION, BY A FOUR-FIFTHS (4/5THS) AFFIRMATIVE VOTE, WITH ATTACHMENT(S), RATIFYING, APPROVING, AND CONFIRMING THE EXECUTED SETTLEMENT AGREEMENT FOR EMINENT DOMAIN CASE NO. 21-027229-CA-01 (“SETTLEMENT”) AND THE INCORPORATED PURCHASE AND SALE AGREEMENT ("PURCHASE AGREEMENT"), ATTACHED AND INCORPORATED AS EXHIBIT “A,” AUTHORIZED PURSUANT TO RESOLUTION R-25-0021, ADOPTED ON JANUARY 23, 2025; AUTHORIZING AND APPROVING THE CONDITION PRECEDENT TO THE EFFECTIVENESS OF THE PURCHASE AGREEMENT CONTAINED IN SECTIONS 2 AND 5 OF THE PURCHASE AGREEMENT TO AUTHORIZE AN INCREASE IN COST BY EIGHT HUNDRED AND FORTY-SEVEN THOUSAND DOLLARS ($847,000.00) FOR A REVISED PURCHASE PRICE EQUAL TO NINE MILLION EIGHT HUNDRED AND FORTY-SEVEN THOUSAND DOLLARS ($9,847,000.00) ("PURCHASE PRICE") FOR THE ACQUISITION OF REAL PROPERTY IDENTIFIED BY FOLIO NUMBERS 01-4102-006-6450, 01-4102-006-6460, 01- 4102-006-6470, 01-4102-006-6480 AND 01-4102-006-6490 LOCATED IN MIAMI, FLORIDA (COLLECTIVELY, "ALTERNATIVE PROPERTY"), FOR A TOTAL AMOUNT NOT TO EXCEED ELEVEN MILLION SEVEN HUNDRED FORTY THOUSAND DOLLARS ($11,740,000.00) FOR THE SETTLEMENT AND ACQUISITION OF THE ALTERNATIVE PROPERTY FOR AFFORDABLE HOUSING, TO COVER THE COST OF SAID SETTLEMENT AND ACQUISITION, INCLUDING BUT NOT LIMITED TO THE PURCHASE PRICE, BENEFITS-BASED ATTORNEY’S FEES, EXPERT FEES, LITIGATION COSTS, SURVEYS, ENVIRONMENTAL REPORTS, TITLE INSURANCE, DEMOLITION, SECURING THE PROPERTY, PROJECT SIGNAGE AND ALL RELATED CLOSING COSTS ASSOCIATED WITH SAID ACQUISITION, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE SETTLEMENT AGREEMENT AND PURCHASE AGREEMENT; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE ANY AND ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS AND MODIFICATIONS TO SAID AGREEMENTS, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY TO EFFECTUATE THE EXECUTED SETTLEMENT AGREEMENT AND PURCHASE AGREEMENT FOR THE PURPOSES SPECIFIED HEREIN; THE INCREASED COST OF EIGHT HUNDRED AND FORTY-SEVEN THOUSAND DOLLARS ($847,000.00) SHALL BE ALLOCATED FROM THE DISTRICT 3 COMMISSIONER’S AFFORDABLE HOUSING TRUST FUND ALLOCATION, SUBJECT TO ALLOCATIONS, APPROPRIATIONS AND BUDGETARY APPROVAL HAVING BEEN PREVIOUSLY MADE OR AS MAY BE SEPARATELY REQUIRED PRIOR TO EXPENDITURE, AND SUBJECT TO COMPLIANCE WITH ALL FEDERAL, STATE, AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSES. WHEREAS, pursuant to Resolution No. R-21-0177, adopted on April 22, 2021, the City of Miami (“City”) authorized the City Manager to acquire certain real properties, including certain riverfront properties located at 5 Southwest South River Drive and 27 Southwest South River Drive, Miami, Florida (collectively, the “Riverfront Property”) by negotiated acquisition or by virtue of an eminent domain action for the express public purpose of establishing public parks within the City; and WHEREAS, the City filed a Petition in eminent domain against South River Warehouse, LLC, a Florida Limited Liability Company (“Respondent”) in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida, Case No. 21-027229-CA-01 for the condemnation of the Riverfront Property (“Case”); and WHEREAS, the Circuit Court issued a final judgment in favor of the City determining that the taking of the Riverfront Property is reasonably necessary to serve the public purpose for which it is being acquired (“Final Judgment”); and WHEREAS, pursuant to

NOW, THEREFORE,

BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Commission hereby ratifies, approves, and confirms the executed Settlement Agreement and incorporated Purchase Agreement, attached and incorporated as Exhibit “A.” Section 3. The City Commission hereby approves the condition precedent to the effectiveness of the Purchase Agreement contained in sections 2 and 5 of the Purchase Agreement to authorize the increase to the Purchase Price. Section 4. The City Manager is further authorized1 to negotiate and execute all necessary documents, including amendments and modifications to said agreements, in a form acceptable to the City Attorney, as may be necessary to effectuate the executed Settlement Agreement and Purchase Agreement for the purposes specified herein. Section 5. The City Manager is further authorized1 and directed to allocate the increased cost of Eight Hundred and Forty-Seven Thousand Dollars ($847,000.00) from the District 3 Commissioner’s Affordable Housing Trust Fund allocation, subject to allocations, appropriations and budgetary approval having been previously made or as may be separately required prior to expenditure, and subject to compliance with all Federal, State, and local laws that regulate the use of such funds for said purposes. Section 6. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND CORRECTNESS: 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions.