HomeMy WebLinkAbout2023-093-1983_-_Establishing_Procedures_for_the_Sale_or_Lease_of_City-Owned_Property_-_Adopted.docxRESOLUTION NO. 2023-093-1983
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MIAMI GARDENS, FLORIDA, ESTABLISHING PROCEDURES
FOR THE SALE AND LEASE OF CITY-OWNED PROPERTY
PROVIDING FOR THE ADOPTION OF REPRESENTATIONS;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, In today’s environment, economic development is more important
than ever during times of economic retraction and downturn as communities strategize
for business growth and resiliency, and
WHEREAS, Economic development, including land sales, long term leases and
other innovative programs which may be implemented are an investment in the City of
Miami Gardens’ growing and sustaining local economy, and
WHEREAS, they help support the local businesses who contribute to the workforce
and the City’s tax base, and
WHEREAS, the City must ensure that any real estate activity that the City engage
in will provide resources to fund services provided by the City ensuring long term
sustainability of City projects, programs, and initiatives, and
WHEREAS, Councilwoman Shannon Campbell recommends establishing
procedures for the sale or lease of City-Owned Property,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF MIAMI GARDENS, FLORIDA AS FOLLOWS:
Section 1: ADOPTION OF REPRESENTATIONS: The foregoing Whereas
paragraphs are hereby ratified and confirmed as being true, and the same are hereby
made a specific part of this Resolution.
Section 2: PROCEDURES FOR THE SALE OR LEASE OF CITY-OWNED
PROPERTY: The City Council of the City of Miami Gardens hereby establishes the
following procedures for the sale or lease of City-Owned Property:
A sale of city owned land/property must be at or above appraised value
City owned land or property must be sold at or above its appraised value. A
commercial/residential appraisal must be no more than six (6) months old when used
to determine a fair market price. Any of the three (3) most common methods of real
estate valuation can be used to determine the value of the property; cost approach,
income approach, and the sales comparison approach.
The cost approach may be used if a building is particularly unique, which is
common for government buildings used for specific government functions. The cost
approach will value the property based on how much it would cost to reconstruct it
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Resolution No. 2023-093-1983
from scratch. The income approach is the most common valuation method in
commercial real estate. It will use common investing calculations to determine how
much income the property would generate in the current market, thus providing the
ability to determine a fair sales price. Third, the sales comparison approach is the
method most often used in residential real estate. This method uses the sale prices of
comparable properties, to determine the valuation of the subject property.
Vacant land will be appraised in a similar fashion as presented above taking into
consideration the following factors commonly used in land valuation; highest and best
use, accessibility, size and shape of the property, the availability of utilities,
improvements made to the property, zoning restrictions, wildlife and environmental
factors and overall demand for land in the area.
The appraisal firm used to determine the sales price range will be the City’s
contracted appraisal firm.
City owned land/property must be leased using standard lease calculations for commercial
space
The cost of leasing space is calculated by multiplying the square footage of a
space by the price per square foot. Price per square foot will vary and can depend on
many of the factors used in property valuation. The City will calculate the price per
square foot by dividing the appraised value/cost of the property by the total floor space
in square feet. Leases will be triple net leases (NNN) where the tenant will pay for all
property expenses during the lease term.
The above parameters will not preclude the City from participating in innovative
public-private partnership transactions in pursuit of economic development. These
projects may be public asset redevelopment or projects to assist in the development of
critical public infrastructure. The City may leverage public assets to optimize public
benefit or unlock monetary value found in previously underperforming City owned
assets. The City may do this through a sale, lease or a joint venture. Any project must
also provide some economic benefit to the City and cannot involve the awarding of
property without a review of its just value.
Public asset redevelopment and/or critical public infrastructure projects
involving City owned land may include the development of industrial property for City
use or allowing for any type of development which will enhance the City’s infrastructure
including the development of vacant land, surplus buildings, parking lots, garages, or
utility systems.
Projects may also include revenue sharing involving any revenue produced from
a private development project built on City-owned land. In instances where the City may
participate in revenue sharing, projects may deviate from the above criteria and will be
evaluated on a case-by-case basis.
Section 3: EFFECTIVE DATE: This Resolution shall take effect immediately upon its
final passage.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MIAMI
GARDENS AT ITS REGULAR MEETING HELD ON JULY 26, 2023.
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Resolution No. 2023-093-1983
________________________________
RODNEY HARRIS, MAYOR
ATTEST:
________________________________
MARIO BATAILLE, CMC, CITY CLERK
PREPARED BY: SONJA KNIGHTON DICKENS, CITY ATTORNEY
SPONSORED BY: COUNCILWOMAN SHANNON CAMPBELL
Moved by: Councilman Leon
Seconded by: Councilman Stephens
VOTE: 6-0
Mayor Harris Yes
Vice Mayor Wilson Yes
Councilwoman Campbell Yes
Councilwoman Ighodaro Yes
Councilwoman Julien Absent
Councilman Leon Yes
Councilwoman Stephens, III Yes
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