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HomeMy WebLinkAboutR-2002-135 RESOLUTION NO. 2002-135 A RESOLUTION OF THE CITY OF DANIA BEACH FLORIDA AUTHORIZING THE CITY MANAGER TO CONTRACT FOR THE PURCHASE OF SERVICES IN AN AMOUNT NOT TO EXCEED $12,500 FROM URBAN ECONOMICS, INC. FOR APPRAISAL SERVICES FOR THE HARBOUR TOWNE MARINA PROPERTY, WITHOUT COMPETITIVE BIDDING AND WITHOUT ADVERTISEMENT FOR BIDS; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Charter of the City of Dania Beach, Part III, Article 3, Section 4, Subsection (J), provides that the City Commission may authorize the purchase by the City Manager of designated services in amounts in excess of seven thousand five hundred dollars ($7,500.00) but less than fifteen thousand dollars ($15,000.00) without competitive bids and without advertisement for bids if authorized in advance by a resolution adopted by the City Commission; and WHEREAS, the City Manager has determined that it is necessary to purchase appraisal services for valuation of the Harbour Towne Marina; and WHEREAS, the City Manager has determined that such purchase can be made at the best cost to the City from Urban Economics, Inc., which specializes in conducting appraisals for marina properties in coastal areas of Florida, in an amount not to exceed $12,500.00; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the City Manager is authorized to pay an amount not to exceed $12,500.00 to Urban Economics, Inc. for the purchase of appraisal services for the valuation of the Harbour Towne Marina. Section 2. That all resolutions or parts of resolutions in conflict with this resolution are repealed to the extent of such conflict. 1 RESOLUTION NO. 2002-135 Section 3. That this resolution shall be in force and take effect immediately upon its passage and adoption. PASSED and ADOPTED this 27`h day of AUGUST 2002. OftftT H. CHUNN, JR. MAY R-COMMISSIONER ATTEST: ROL CALL: COMMISSIONER BERTINO - YES COMMISSIONER MCELYEA - YES CHARLENE J0JNSON COMMISSIONER MIKES - YES CITY CLERK VICE-MAYOR FLURY - YES MAYOR FLURY - YES APPROVED AS TO FO AND CORRECTNESS: BY: TH MAS J. A SBRO CITY ATTORNEY • 2 RESOLUTION NO. 2002-135 08/14/02 WED 12:14 FAX U05 864 LJLJ Wlylba ;xlwru1A & =LrMM1 vmvva Fug 13 09 LZzRip Urban Ecanorote>s, Imo. 813 289 8041 p-z UP,BAN ECONOMICS INCORPORATED • R ) A L a'.t I A I i A I) V I M 0 It r MICIIA4 A,M<;ttVFk N.MAI 1. 1 N I � U Ca S A 1. r S 7' A T I:. R R 0 k g a I1,),INLYoon GILItrim R.,MAI INl u,l U ni Rt Itcnrr/Mfc1 M -- •11A.AWI An IR3I 41 NIIR1 At'IINI,1f M1 gry,lµY - _!_ 1..... SSIrll1\ -._fie- •hhW.r August 12,2(x)2 - -- - .Elaine M,Co hctt,Esq Weiss,Scoria,T-eif►nM PRS1nriMq,8ntd Guedes,P.A. 2665 South Bayshore Urive Suite 420 Miami, T'lvr-idu► Re: Harbor Towns M11 City of Dank Bes Dcar Ms. Cohen: ' It was a pleasure meewting with you and having an o Towne Marina last week. As we have previously spoke dc%ailed letter proposal approximately two years ago, 1 wul: at this point. It iS my Understanding the City of Dania Beach would like proposals on two issues related to then above m4dAs,which I am glad to do. The first proposal is to prepare an appraisal of the of fair market rental of the property, TI1is utiulase would be of the property in it-, existing, as-is Condition, including all improvements, and wc►ad represent the typioal terms and annual rental amount the City ooWd reasonably expect to re=ive if the property were placed on the open market for lease. Thde analysis will mju>ire a wmplete appraisal of the property, with the estimate of market rent primarily based on two approaches, the cost approach and the income approach. In the cost approach we estimate land value and the depreciawd replacement cost of building improvements_ Once we have estimated the value in this approach, we apply a rate of return, which gives us an indication of market rent. In the income approach we analyze the actual and projocted revenues slid apply a.pelrentage in order to estimate:a market rental rate. Finally, the results of the two methods are compared and the best cstin w of rent is concluded.. This estimate will be of the property in its as-is conditicm, including, for example, the casW down the Center which pmvider the opporwaity for the bolt blips and work ym^d- Several questions must be addressed, such as use of the civic center and the possible mquircrnertt to maintlin the existing parking ratios. Regardless,the and other questions can bo addresscfl as we reawh drat point in the aaalysis. Ba<�ei on the above utlde standiag, the fee for preparation of the above report ,mill be S7500,and the assiglmcni typically requires four to six weeks from date of authorization to complete. • 9tOtC)IICIl�iF:11.1AIGiAVFNIQi„ rAMPA.II,(,IIUF)A,UAOW•<IA r .. ;' u:f'ij0N( 4813)2R4'6444 TAOSIMILh 041v)j$4)-$041 08/14/02 WED 12:15 FAX 303 834 2323 WE155 SiBXUTA & HELMAIN WJuvo 9ug 13 02 LZI2iP Urban Evonomivsj Irmo. 8l$ 298 80*1 p.3 • Page 2 Elaine M.Cohcn,Esq. August 12 20f12 The "cond assignment is to eatlmate "appvt and value" of the improvements, a000rding t0 the tM113 of the exixtinU ICSFO, The tRx deductions taken by ttt,, Losses will thou be deducted tlom this amouryt. In my view,the"apprW$Od value"of 4MMOvernents means the Writrlbutory vattLe of the improvements,subject to the Snancinl eonStmints of the market. In other words, we first look.only at the land and estimate the value of the site in its"before condition, as if the ca,ml were not consuwted. We then estimate the cost to dredge and install seawalls, essentially croating the site as it sits today. We note, however, thOt the total of"before" land value plus the coat of dredging attd teaw&II ciwut exceed value ot"thc site in its as is condition. in other words, the maximum "value" that, can be attributed to the improvements would be the difference between the before and after land values_ Of c l rse,other factors may come t0 light as we work on the amipmcnL Estimating the"appraised value" of the upland imrprovemcats will require a uumparison of the physically depreclatcd replacement cost with the value supported by the income. As you know, the value of improvements to any property may be more or less than the actaal cost.slid it will be our task to provide a well supported estimate of that value. • Ou,fee for this analysis will be$5,000,and wilt also require sex to stwmr,wemka,xaaaariittg an;additional twa wales beyond the basic appmiml assignment. Finally, I believe thoxc arc Certain ambiguides and ttltcrnative inte:rpre:Wons of the laM, and I would uk your assistance in clarifying and hopefully reducing these to the rnoat probable intcgxeutjom Iiowevear. if there reMixis any coz=ovenY, owe ca,n provide the reams or values that apply to either argument,so to speak. The City would then have the dollar a=unts that go with,the diffictcnt interpretations. 1 4p='ue the apportucuty to Present this prcaposal, and look forward to aloe opportunity to be of service. 1 would be glad to furdier discuss any of these issue-$ at your CQ11vt3,�LlC!le7tl. Very truly yours, H_ Linwood Gilbert.Jr.,MA( HLG/ft cc: Thomas I.Ansbro,E4q. • M1 .� s UO/Ii/UL Wtv 1z:10 YAS OLID 604 z4za YICi1zI4k ahxulA & =LrlaAly gpfuve RU,� 13 OZ .!?s21}y Urban t=oonomlos, inn. 919, 289 9041 P. 4 URBAN ECONOMICS INCORPORATED • R ! n L d e r . 7 � A P � t f a7 x v M1CliARIA M<;CfYYIN.►lAf I. I C R M 8 R U @ Q A L L S S A T 9 B R G K C R W<irxirnernt�.�r•rcar�fstw J4.uelwaon GiLRERT.IV MAI b��r7G(R'hnv cw rn,�nary{„w na oaiamr tKPUU wu(unn AWKra MAU e,on$rra vtintni,rPpniu�t+aoowwo QUALIFICATIONS OF K LINIIVOOD Pi1L.9rp T, JR., MM ILDUCA'ITiOM University of Georgia,BOA, 1077 Major. Gcaeml Business Minors: FIFI sgoe.Mttua98nxnt,Marketin&a M3 Real Mate CONTI"INC EDUCATION. Courscs 101 and 201 Appralsing for Pension Fund Portfolios Sof:iety of Real Estate Appraisers D4velopmont Analysis Course 11,Urbna Propertl K Valuation of Hotels slid Motels (CorttmmiaUlncome) incomo Capitalization Wofthop Course Vl,Investment Analysis Advanced Capitilszation Warkshop Course V111,Residential AppmWid Calculator and ComputorSolutions to Capttallnuon'ihevdes and Cbrrtcrnporaty Problems Techniques(13B) FlewkiUPackard Fkmcial Calculators Rate Extraction Seminar (Adva=d Course) • Course ds Market Ana(ysls 5t rmPct of Euvinurmental Considerations arrdttrds of Practice on Real Esteto Appraisals Applied A,ppmisW 1 echWgigm Appraisal J4SUlfrtltW or the Federal Valuation Lidgarior!/Mock Trial Flanking A capirat ma"tazluattnes on Rea) Ete++cies Discount end Capiffili2rttkn&ft Estate Valuation Componcuts Analyzing Operating Fxpaisft 7110 Appraiser as Expert Wkness USPAP"Core"Law Update£or Appraisers UndMUOding Limited Appraisals and Power Lines and 1?leetr0-Ma9Wtic Fields Reporting Options EfYixt on Value and Peoplo Tax Credits for Low Income Housing Eminent Domain and Land Valuation Fair Lendbig and Tate Appraiser Litiget on—ALVAHA Appraisal of Nureing rwa ties LlrinWion Shills for t e Appraiser:An Overview Economic Werth of tin-Pmmise Sisdav Construction Contmcm—Stretegres For Projoct Florida Ad Valorem Property Tax Update CQWICiou and Litlgatioa Avoijbwca Also attendcd courses and seminars covering various aspects of rear+fatale vWuatlon,landing,tesslttS,marlaxing t1trQ Manegcment sponsored by T'he Ohio State Univeqity, The Massachu a4ts Ir�clture of Tevhnalogy, Robfxt Mur:u Associates,'l he i`EDfQISVetit Center for Pt Education,New Yort Univmtilty,St.Petersburg Junlor CAltegt. the Uaivuufty of Shopping Centers(sponsored try The Intemational Council of Shopping CoWers),Florida Power Corporation. wW carers. Attended"Envirornm4m%l 1ln&pmotlon for Reu1 t?Qratt Transactions"seminar sponeomd by (he Environmental Assmment Amciation, Guest lecturer at NAIOP Real Estate Development course. Guest Iostruetor of Baal):sure Appratsal Course W Iarcrnatiortal Marina Institute, Qualified as Expert Witness in real 08WO varuadon madm in bankruptcy mW civil courts. • 8LU SOL'PII crERt_anrG avGNuit,i'AMPA•1r1()RIrtA 3Hzuv�516 � �' L TRtlrtioore t3t3r 189•ds44 PwcsrMft,F c9131 z89'8(111 WEISS SEROTA IIELFNIAN PASTORI.ZA & GUEDES, P.A. 3107 Stirling Rd., Suite 300 Ft. Lauderdale, FL 33312 � AUG Telephone (954) 763-4242 5 2002 Telecopier (954) 764-0770 BY: CONFIDENTIAL TO: Charlene Johnson Fax: 954-92:L260* FROM: Suzie COMMENTS: Tom wanted you to use the attached as an Exhibit for the 827102 Commission meeting. He will need a resolution retaining him, without bids, "unique circumstances", $12,500.00 The information contained in this transmission is attorney privileged and confidential. It is intended only for the use of the individual or entity named above. If the reader of this message is not the iritcnded rccipicnt,you are hereby notified that any dissemination, distribution or copy of this communication is strictly prohibited. If you have received this communication in error,please notify us immediately by telephone collect and return the original message to us at the above address via the U. S.Postal Scryice. We will rcimbursc you for postagc.Thank you. FILE NO.: 566.001 DATE: August 15,2002 NUMBER OF PAGES INCLUDING COVER SHEET: 4 PLEASE NOTIFY US IMMEDIATELY IF NOT RECEIVED PROPERLY V vrs-rup uroan tconomics, Inc. 613 28S 8041 p. 1 • URBAN ECONOMICS INcO RPORATED REAL ESTATE ADVISOILY MICHAE•L P.McELVEK MAT 1i.LINWOOD G UI;RT,JHL.MAT LICENSED REAL ESTATE BRtOM LICEN=R]3A1.MATE BROKER SPATE CERT.oRNip-&L APPRAISER NO,0000360 STATE CART,GENERAL APPRAISER N0,000mu FACSIMILE TRANSMISSION - TO; ,C.J FAX NO.- COMPANYt PHONE: FROM: t DATE: RE: �jGT�ESNCLUDIN'G COVER: COMMENTS: V. Gd. ' J�OTE:T1;15 I'ACSI�IILETR.tVS�11SSIQN I$1%;?T=NnRm Fog T1IE UCLUSIVE USE OF THE ADDRYSSEE ONLY. IFYOV HAVE, REUIVEU THIS fA.X gy,%I STAKE OR THIS I X 15 UN ONCE.� �E] 'PLEASE DfiSTRiOY THE ORIGI�A4 810 SOUTlt STERLING AVENUE,TAMPA,FL33609—TELEPHONE(813)289-8944;FAX(&13)7.89-8041 `•"�.r "• ;--'- �+ + T�+p air4an tconomxos, inc. B13 283 8041 p. 2 August S.2002 Elaine K Cohen,Fsq_ Weiss,Serota,Helfman,Pastorixa,and Guedes,P.A. 3107 Stirling Road Suite 300 Ft.Lauderdale,Florida 33312 Re: Harbor Towne Marina City of Denis Beach,Florida Bear I&Cohen; It was a pleasure meeting with you and having an oppor'r mIty to IMP= the Harbor Towne Marina last week. As we have previously spoken of the,property,and as I wrote a detailed letter proposal approximately two years ago.I will omit the background material at this point It is my understanding the City of Dania, Brady would lie proposals on two issues , related to the above marina,which I am glad to do, The tryst proposal is to prepare an appraisal of the of fain market rental of the property. This estimate would be of the property in its existing, as-is condition, including all improvements, and would rcpresatrt the typiosl terms and annual rental amount the City could reasonably expect to receive if the property were placed on the open market for lease. This analysis will require a complete appraisal of the property,with the estirrtatc of market rent primarily based on two approaches, the cost approach and the inwme approach. In the cost approach we estimate land value and the deprcciatmd replacement oost of buildinG improvements. Once we hive estimated the value in this approach, we apply a rate of return. which ;dives us an indication of mariort rent, In the income approach we analyze the actual and projected revenues and apply a percentage in order to estimate a market rental rant. Finally,the results of the two mothodg arc aompamd and the best estimate of rent is concluded. This estimate will be of the property in its as-is comdition, including, for example, the canal dowry the oenter which provides the opportunity for the boat slips wW work yard_ Several qucstivns must be addressed, such as use of the civic center,and the p wsible requirettrent to maintain the existing parking ratios. Regardless,these and other questions can be addressed as we reach that point in the analysis. • �L ur=-ruP urnan Loonodllas Inc. � 813 289 8041 p,3 • Page 2 Elaine M. Cohen,Esq. August S,2002 Based on the above understanding, the fee for preparation of the above report will be $7,500,and the assignment typically requires Four to six weeks from date of authorization to complete. The second assignment is to estimate"appraised value" of the improvements,according to the terms of the existing lease. The tax deductions taken by the Lessee will then ba deducted from this amount, In my view,the "appraised valor"of improvements means the contributory value of the improvements;subject to the financial constraints of the market in other,words,we,,-first loop only at the land and estimate the value of time site in its"before"condition,as if time canal were not constructed. We thou esdaiatc the cost to dmdge and install seawalls, essentially creating the site as it sits.today. We note,however,that the total of"before" land value plus the cost of dredging and seawall cannot exceed value of the site in its as. is condition. In other words, the maximum "value" that can be attributed to the improvements would be the diff6rence between the before and after land values. Of Lvu=,other Actors may come to light as we work on the assignment. Estimating the"appraised value"of the upland unprovements will require a comparison of the physically depreciated replacement cost with the value supported by ibc.invonxc. As you.know, the value of impmvements to any property may be more or less than the actual cost,and it will be our task to provide a well sUpported estimate of that value. Our fee for this analysis will be$5,000,and will also require six to seven weeks,meaning an additional two weeks beyond the tic appraisal assignment_ Finally. I believe there are certain ambil,p ties and alternative interpretations of the lease, and 1 would ask your assistance in clarifying and hopeflmlly reducing these to the most probable interpretation, Howevcr, if there rmnains any controversy, we can provide the icats or values that apply to either arsumeat, so to speak. The City would theta have the dollar amounts that go with the different interpretations. I appreciate the opportunity to present'this proposal, and look forward w the opportunity to be of service. 1 would be glad to ftwd t' discuss any of these issues at your convenience, Very truly yours, H, Linwood Gilbert,ir.,.Nw Hx.GJr1g V '