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HomeMy WebLinkAbout2008-05-01 - City Commission Special Meeting MinutesCITY OF TAMARAC SPECIAL CITY COMMISSION MEETING CITY HALL CHAMBERS THURSDAY MAY 01, 2008 CALL TO ORDER: Mayor Flansbaum-Talabisco called the Special Meeting of the City Commission to order at 9:35 a.m. on Thursday, May 1, 2008 in Chambers at Tamarac City Hall, 7525 NW 88th Avenue, Tamarac, Florida. PRESENT: Mayor Beth Flansbaum-Talabisco, Vice Mayor Marc L. Sultanof, Commissioner Edward C. Portner, Commissioner Patte Atkins -Grad, and Commissioner Harry Dressler. Commissioner Atkins -Grad led the pledge of allegiance. 1. EXCHANGE OF REAL PROPERTIES BETWEEN TAMARAC JEWISH CENTER INC. AND THE CITY OF TAMARAC: (TR11382) Motion to approve Resolution authorizing the appropriate City Officials to proceed to closing on the agreement for exchange of real properties between Tamarac Jewish Center Inc. and the City of Tamarac for the City to acquire for the expansion of future economic development interests 4.5+/- acres of improved land currently owned by Tamarac Jewish Center, Inc. in exchange for the City's conveyance to Tamarac Jewish Center, inc. of 2.59+/- acres of vacant land currently owned by the city with an additional payment from the City to Tamarac Jewish Center, Inc in the amount of Four Million Nine Hundred Ninety -Five Thousand Dollars ($4,995,000.00). CONTINUED FROM THE APRIL 23, 2008 REGULAR MEETING TO THE MAY 1, 2008 SPECIAL MEETING AT OR AFTER 9:30 A.M. - Presenters: Public and Economic Affairs Officer Berns, Craig Eakin, Esq., Special Counsel, and G. Russell Weyer, MBA, Fishkind & Associates, inc. Commissioner Dressler seconded by Commissioner Atkins -Grad moved approval. Public and Economic Affairs Officer Berns, G. Russell Weyer, Fishkind & Associates, and Craig Eakin, Special Counsel gave presentations. Commissioner Dressler confirmed there is currently no revenue stream from the Temple to the City and confirmed the move to the new parcel will net a tax generation of $4.5 million. Commissioner Dressler spoke of the methods used to forecast assumptions and explained variance at risk. Commissioner Dressler questioned favorable financing terms and Deputy City Manager Cernech and Public and Economic Affairs Officer Berns responded saying the interest rate is 3.73% and it is a variable rate based on LIBOR plus 1.25 basis points. Commissioner Dressler questioned why the City would pay over the appraised value given this economy and Public and Economic Affairs Officer Berns explained negotiations were entered into a while back, and the cost for the temple to rebuild was taken into consideration. Commissioner Dressler confirmed the number of jobs that would result from Main Street and Mayor Flansbaum-Talabisco confirmed the number included those jobs created during the construction. Commissioner Dressler said the City would significantly benefit from the development of Main Street. May 1, 2008 Special Commission Meeting Page 1 of 4 Vice Mayor Sultanof spoke about the benefits of retail shops and restaurants and said offices would be secondary to this development. Vice Mayor Sultanof spoke of the problems between the Temple and the insurance company, and Attorneys Eisensmith and Eakin said since the issue is in negotiations and litigation, and it is not possible to discuss it at this time. Commissioners Dressler and Portner left the room at 10:24 a.m. and returned at 10:27 a.m. Vice Mayor Sultanof asked if any of the money would come back to the city if a settlement is reached. Attorney Eakin explained the contract for the purchase is not contingent on any results of the insurance claim. Vice Mayor Sultanof asked whose responsibility it would be to remove the structure when the Temple vacates the property, and referenced the City's agreement with Chevron. Attorney Eakin explained the Temple has no responsibility to remove the structure. Public and Economic Affairs Officer Berns added costs to demolish will be considered at the time the City sells the property to a developer. City Manager Miller explained the Chevron purchase and this exchange are two separate deals. Removal of the gas tanks in the ground and the potential for pollution must be handled by experts, and Chevron does this for a living. We were able to negotiate with Chevron to fully restore the site. In the instant case, the shell of the building left will be the responsibility of the developer who comes in to purchase the property. Commissioner Atkins -Grad asked if the Temple is ready to start construction, if they have worked with an architect and have plans ready. Attorney Eisensmith said an architect has been retained and preliminary plans have been drawn up. There are no plans for construction as yet. Commissioner Atkins -Grad said the Temple is a key component of the project and the City is only purchasing the property for a short time; it will be sold to a developer. It will be very nice to have restaurants in Tamarac, and the 10.25% assumption is on track. Vice Mayor Sultanof left the room at 10:45 a.m. and returned at 10:49 a.m. Commissioner Portner questioned various items in the backup memo, contract and lease agreement, which questions were responded to by Public and Economic Affairs Officer Berns, Mr. Weyer, and Attorneys Eisensmith and Eakin. Commissioner Atkins -Grad and City Attorney Goren left the room at 11:00 a.m. and returned at 11:05 a.m. Commissioner Partner expressed concern over the two-year time period to construct the new building and Attorney Eisensmith said he did not believe the contractor would take the full two years to construct the building. Commissioner Portner questioned the buy-back of exchange and Attorney Eakin explained if the Temple does not move forward with construction in good faith on the exchange parcel, rather than have a vacant lot the City has the option to buy back the parcel at the original price. Attorney Eakin spoke of deleting language in the lease regarding $500,000 of advance rent as it May 1, 2008 Special Commission Meeting Page 2 of 4 is not an accurate description of the current deal. Commissioner Portner said he is not comfortable with the deal because of the time lag and he feels the Temple is caught in the middle. Commissioner Portner asked the Temple representatives if it is feasible for them to tear down the current building and rebuild on the site. Attorney Eisensmith said that option was not explored, but if they did move in that direction they would have difficulty continuing services and events. Commissioner Dressler questioned whether the permit fees included in the assumptions are the old or new fees and Public and Economic Affairs Officer Berns said the assumptions are based on the old fees. Commissioner Dressler asked if the source of funds for temple development are coming out of the proceeds of the sale and Attorney Eisensmith said they are. There are no plans to borrow money, but rather to initiate a fund raising campaign. Commissioner Dressler confirmed if the Mayor and City Commission approve this transaction, the City is simply facilitating economic development. Vice Mayor Sultanof spoke approvingly of the contractor the Temple has chosen and commended the representatives of the Temple on what they are proposing for the building. Mayor Flansbaum-Talabisco questioned force majeur and Attorney Eakin spoke of catastrophic events and construction delays that may result. Mayor Flansbaum- Talabisco questioned the City's protection and Attorney Eakin explained the two year rent free period can only be extended for 90 days should a catastrophic event occur. Mayor Flansbaum-Talabisco questioned the path of negotiations and City Manager Miller said while negotiations were lengthy; once we had begun and each side understood the others' final mutual goals, things went along smoothly. City Manager Miller congratulated the Temple for their understanding of the City's position. Attorney Eakin spoke of negotiations regarding the price. Mayor Flansbaum-Talabisco confirmed the developer would reimburse or pay for demolition of the building on the Temple's current parcel. City Attorney Goren left the room at 11:39 a.m. and returned at 11: 1 a.m. Mayor Flansbaum-Talabisco asked the Temple to become a community partner and Attorney Eisensmith said the Temple would like nothing more, and would do everything it could in the spirit of cooperation. It will be a benefit to the Temple and the City. City Attorney Goren explained by virtue of the City's ownership of the property, the responsibility of the demolition rests on the City's shoulders. At the time the property is sold the demolition costs will be discussed as part of the respective sale. Commissioner Dressler said this is a good deal both for the City and the residents. Commissioner Portner said he has been involved in economic development for a long time and one thing that is very important is a parking garage, and suggested staff look into getting money for a parking garage. May 1, 2008 Special Commission Meeting Page 3 of 4 Vice Mayor Sultanof questioned the property on which the cell tower sits and City Manager Miller said the tower can be moved if the City desires. Vice Mayor Sultanof said both he and Mayor Flansbaum-Talabisco serve on the Board of Trustees of University Hospital, and Rabbi Gold of Temple Beth Torah has agreed to serve on the Board, and Vice Mayor Sultanof spoke of involvement of other religious organizations in the City of Tamarac. Mayor Flansbaum-Talabisco thanked everyone on the staff for their efforts with regard to this land exchange and said she sees this as a window of opportunity. Mayor Flansbaum-Talabisco spoke of an article she read in yesterday's New York Times, regarding the City of Manhattan exchanging property to permit the construction of the New Lincoln Square Synagogue. City Attorney Goren read Temporary Resolution 11382 by title. On roll call Commissioner Atkins -Grad voted "yes", Vice Mayor Sultanof "yes", Commissioner Dressler "yes", Commissioner Portner "yes", and Mayor Flansbaum-Talabisco "yes". Motion carried. RESOLUTION NO. R2008-53 There being no further business to come before the Mayor and City Commission, Mayor Flansbaum-Talabisco adjourned the special meeting of the City Commission at 11:55 a.m. ° 4 Marion Swenson, CMC City Clerk Ai 4", 1 Beth •. • • Mayor May 1, 2008 Special Commission Meeting Page 4 of 4 E