A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, ON SECOND READING, FOLLOWING A DULY NOTICED PUBLIC HEARING, AN AIR RIGHTS EASEMENT AGREEMENT PURSUANT TO SECTION 82-37(A)(2) OF THE CITY CODE, BY AND BETWEEN THE CITY AND ESSEX HOUSE COLLINS, LP (THE "APPLICANT"), FOR THE APPLICANT'S CONSTRUCTION, OPERATION AND USE OF A PEDESTRIAN BRIDGE CONNECTING THE CLEVELANDER SOUTH BEACH HOTEL (1020 OCEAN DRIVE) AND THE ESSEX HOUSE HOTEL (1001 and 1021 COLLINS AVENUE) OVER A PORTION OF THE CITY'S OCEAN COURT RIGHT OF WAY; WITH SAID EASEMENT AREA CONSISTING OF APPROXIMATELY SIX (6) FEET IN WIDTH, TWENTY (20) FEET IN LENGTH, FOURTEEN (14) FEET IN HEIGHT (FOR A TOTAL OF APPROXIMATELY 1,680 CUBIC FEET OF AIR SPACE), AND LOCATED A MINIMUM OF THIRTY-SIX (36) FEET ABOVE THE GRADE SURFACE OF THE OCEAN COURT RIGHT OF WAY; FURTHER, WAIVING, BY 5/7TH VOTE, THE COMPETITIVE BIDDING REQUIREMENTS OF SECTION 82-39(A) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE SERVED BY WAIVING SUCH CONDITION.

The Jesta Group purchased the Clevelander South Beach Hotel (hereinafter the "Clevelander"), located at 1020 Ocean Drive, and the Essex House Hotel (hereinafter "Essex House"), located at 1001 Collins Avenue, in October 2018.

An application was submitted to the Historic Preservation Board (HPB) for a project involving the renovation of the Essex House and construction of an addition. At its October 8, 2019, the HPB reviewed and approved the bridge design. As part of this project, the firm is seeking to invest in the Essex House and connect it with the Clevelander via a pedestrian bridge that will span over Ocean Court.

Pursuant to Section 82-37(a) of the City Code, Jesta Group is seeking an aerial easement over a portion of the Ocean Court alleyway, adjacent to their properties, for the construction of a pedestrian bridge, following the same general framework as other bridge connector projects like the Tides and the Betsy.

The Clevelander and Essex House are separated by a City public right of way known as Ocean Court, an alley that runs south to north parallel to Ocean Drive. Ocean Court was dedicated by plat to the City as a public right of way; this dedication also includes the air rights over the Ocean Court right of way (the air rights over the Ocean Court right of way are referred to hereinafter as the "Easement Area").

The bridge is proposed to be located at the 3rd story level, to ensure no disruption in vehicular traffic to the service alleyway. The pedestrian bridge will, among other things, increase the circulation and functionality of these two prominent hotels and, thus, potentially benefit the City's tourism industry.

Under an air rights easement, the Jesta Group shall bear any and all costs of installation, maintenance, repairs, taxes, insurance and any and all other costs and expenses, including any necessary relocation or undergrounding of existing utilities in conflict with the proposed pedestrian bridge, involved in its installation, operation and use.

An appraisal was conducted in order to form an opinion of the market value of an aerial easement above Ocean Court between the two properties known as the Clevelander and the Essex House. The easement parcel consists of an aerial easement that begins 42.5 feet above the existing street level and exceeds upward to 56.5 feet. The width of Ocean Court alley is 20 feet and width of the bridge is 6 feet. The square footage of the bridge is 6 feet multiplied by 20 feet or 120 square feet of area and 1,680 cubic feet of air space.

Based upon the appraisal of the property and market data analysis, the market value of the aerial easement parcel, described herein, as of July 23, 2019 is estimated at $135,000.

During negotiations with the City Administration, the applicant agreed to pay $240,000 for the combined air rights easement market value and public benefit. The applicant proposed that the sum of $105,000, which is the difference between market value of air rights ($135,000) and total payment ($240,000) be provided as "in kind" with streetscape and similar improvements, subject to the approval of the City Administration. Should that public benefit be accepted that the City Commission, waive the bidding requirement and further that the applicant pay the fair market value as determined by the appraiser.

At its October 16, 2019 meeting, the City Clerk read the first reading title into the record.  The Commission made a motion to instead of taking the in kind money to be used towards the alley improvements, the City would take a lump sum payment of $240,000.   Both the City and the Applicant agreed, and a second reading public hearing was scheduled for October 30, 2019. 

Pursuant to Sections 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of City-owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease (attached). The following is an analysis based on the criteria delineated in the Code:

1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan.

Consistent – The easement will not impede the use of the alley as it exists today. The use of the adjacent properties will not change. This is consistent with the Comprehensive Plan.

2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed, the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer.

Consistent – No negative impacts are anticipated by the proposal. The easement will not impede the functioning of the alley, nor will it result in additional development rights for either of the adjacent properties. The easement will not impact adopted levels of service for public infrastructure.

3. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the city's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life.

Consistent - This proposal expands the City’s revenue base by allowing for improved functioning of the Essex and Clevelander Hotels. The adjacent property owners will be responsible for any taxes imposed on the site. The walkway will allow for the use of shared amenities and transfer of pedestrians and luggage between buildings without using public sidewalks or alleys. A similar aerial easement was provided to the north of this site and no negative impacts have been noted.

4. A determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project.

Consistent - The surrounding neighborhood will not be negatively affected. The bridge will not block views. No environmental intrusions will be created by the proposed ROW vacation.

5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs.

Consistent – This aerial easement will not affect the parking or infrastructure needs of adjacent properties.

6. Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition.

Not applicable - The Planning Department has no other issues it deems appropriate to analyze for this proposal.

The Administration recommends accepting a payment to the City in the amount of $240,000, to be disbursed in three (3) installments as follows: (1) $80,000 upon application for a building permit to construct the Pedestrian Bridge; (2) $80,000 upon issuance of a building permit for the construction of the Pedestrian Bridge; and (3) $80,000 upon the issuance of a Certificate of Occupancy for the Pedestrian Bridge., and to further waive by 5/7th vote, the competitive bidding requirements of Section 82-39(b) of the City Code, finding that the public interest would be served by waiving such condition.