Title
Resolution authorizing the execution of an amendment to the Lease and Development Agreement between The Palace Management Group, LLC and the City of Coral Gables, dated July 14, 2008.
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Mr. Mario J. Garcia-Serra of Greenberg Traurig, P.A. on behalf of the Palace Management Group, LLC is requesting the City Commission consider allowing the execution of this amendment to the Lease and Development agreement.
On March 10, 2009 this amendment was introduced to the City Commission postponing possession date (construction commencement) and ultimately the project opening by approximately one year. The delay is exclusively due to the difficulty in obtaining construction financing. The Palace Group has shown its commitment by continuing to move forward with securing the regulatory approvals, the development of final plans and specifications, and the establishment of a Community Development District. To date, the Palace Group has already spent a substantial investment towards the implementation of this important project, including the acquisition of the Melody Inn property. In addition, The Palace Group has also committed to reimbursing the City's third party expenses at the conclusion of the Public Approvals, by June 5, 2009.
This Lease amendment further authorizes the City Manager at his sole and exclusive discretion, to grant up to a 6 month extension of time for compliance.
This amendment also creates a new section of the Lease, providing for a Management Agreement for the City's use of the parking lot adjacent to Melody Inn and the City Parking facility for public parking, until such time that the Developer provides notice on commencement of construction at each facility.
On February 28, 2006, under Resolution No. 2006-38, the City Commission authorized the City Manager to issue a Request for Proposals from proposers experienced in developing premier market rate senior housing with specific emphasis on congregate living services, for the private redevelopment of two City owned properties at 45 and 50 Andalusia Avenue. The Request for Proposals was issued on March 8, 2006, with a submission due date of June 8, 2006.
On June 8, 2006 only one proposal was received. The proposal was examined by the Certification Committee, which judged the proposal "certified" and stated that the conditions of the RFP were met.
On July 11, 2006, the City Commission authorized the City Manager to commence negotiations with the Palace Group for the redevelopment of Municipal Parking Lot No. 9 and Municipal Parking Garage No. 5 for a market rate Senior Housing Development.
On July 17, 2007 a presentation was made to the City Commission providing a review of the proposed Operational Standards for Residential Building, financial terms and "Operational Standards for the Parking Garage" and a summary of the anticipated Residential Building and Parking Lease agreements. Included in the Parking Lease Agreement for a 542-car garage are specific provisions for the 337 public parking spaces, and the establishment of a Community Development District.
The Ordinance passed on First Reading at the October 9, 2007 City Commission meeting, at which a detailed presentation, describing the provisions of the Lease Agreements, was made by City Staff and City Consultants.
The Ordinance was passed on Second Reading at November 17, 2007 City Commission meeting.