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HomeMy Public PortalAbout08-20-1993 Proposed Acquisition of the Tree Farm Property.tifPROPOSED ACQUISITION OF THE TREE FARM PROPERTY Located between Crandon Boulevard & Fernwood Road AUGUST 20, 1993 ANYONE DESIRING FURTHER INFORMATION ON THE CONTENTS OF THIS REPORT SHOULD CONTACT: C. SAMUEL KISSINGER VILLAGE MANAGER VILLAGE OF KEY BISCAYNE 85 WEST MCINTYRE STREET KEY BISCAYNE, FLORIDA 33149 (305)365-5514 MICSR IN srATEMENI " I O PROV1IM A SAIL, QUALII'1 COMMUNITY ENVIRONMENT FOR ALL ISLANDERS TIIROI GH RESPONSIBLE GOVERNMENT" O'LEARY DESIGN ASSOCIATES uvosu+f arvr. -_oe .o vuvv,; C+• 1 X35 f��t fl,c S rn r S.r C,1 u.nv 31.56 O LEARY DESIGN ASSOCIATES C., f'255.40,1 •C 5+^CI PROPOSED AQUISITION OF THE TREE FARM PROPERTY TABLE OF CONTENTS Page Mayor & Members of the Village Council ii Local Planning Agency Members iii Administrative Officers and Officials iv I. Introduction 1 II. Background 1 III. Appraisals 2 IV. Compromise Offer 3 V. Summary of Land Values 4 VI. Recommendation 4 VII. Benefits of Passive Recreation Area 6 VIII. Park Plan 7 IX. Summary & Conclusion 8 Exhibits Exhibit A. Location Map 10 Exhibit B. Location Map 11 Exhibit C. Rejection Letter dated January 12, 1993 12 Exhibit D. O'Leary Letter dated August 3, 1993 14 Exhibit E. Bank Payment Schedules 15 Exhibit F. Bond Payment Schedules 16 Exhibit G. O'Leary Letter Dated July 26, 1993 ( Balifields) 26 Exhibit H. Operating and Capital Budget 28 Exhibit I. Time Schedule . 29 Exhibit J. Master Plan Opinion Survey Results 30 Exhibit K. Key Biscayne Park Plan 31 Exhibit L. Key Biscayne Park - Typical Nature Trail 32 VILLAGE OF KEY BISCAYNE, FLORIDA VILLAGE COUNCIL Rafael H. Conte, Mayor Clifford Brody, Vice Mayor Mortimer Fried Michael Hill Joe I. Rasco Betty Q. Sime Raymond P. Sullivan COUNCIL - MANAGER FORM OF GOVERNMENT Mission Statement. "To Provide a safe, quality community environment for all islanders through responsible government." VILLAGE OF KEY BISCAYNE, FLORIDA LOCAL PLANNING AGENCY Betty Q, Sime, Chairman Joe I. Rasco, Vice -Cu rman Clifford Brody Rafael H. Conte Mortimer Fried Michael Hill Raymond P. Sullivan Master Plan Consultant: Robert K. Swarthout, Inc. City Planning Consultants 400 South Dixie Highway Suite 121 Boca Raton, Florida 33232 Mission Statement • 'To provide a safe, quality community environment for all islanders through responsible government." VillAGE OF KEY BISCAYNE ADMINISTRATIVE OFFICERS C. Samuel Kissinger Village Manager Michael J. Flaherty Chief of Police Director of Emergency Services Susan Krupnick-Gregorie Director of Economic Development William C. Huddleston Chief of Fire Rescue VILLAGE ENGINEER: Carlos A. Penin, P.E. President C.A.P. Engineering Consultants, Inc. 4848 S.W. 74th Court Miami, Florida 33155 Mariano Fernandez Staff Engineer Weiss, Serota & Helfman, P.A. Village Attorney DEPARTMENTS Guido H. Inguanzo, Jr. Village Clerk Jack Neustadt Director of Finance & Administrative Services Robin M. Sobrino, AICP Director of Community Development Laurie Tessler Director of Recreation INDEPENDENT CONTRACTORS VILLAGE LANDSCAPE ARCHITECTS: William A. O'Leary, FASLA President O'Leary Design Associates, P.A. Oak Plaza Professional Center 8525 S.W. 92nd Street, Suite C l l Miami, Florida 33149 A. Gail Boorman, ASLA President A. Gail Boorman & Assoc. 849 7th Avenue Suite 204 Naples, Florida 33940 Mission Statement- 'To Provide a safe, qudity community environment for dl islanders through responsible goverment." BUILDING & CODE ENFORCEMENT DIVISION Dan B. Nieda, RA. Building Official Joan Moore Paul Elledge Code Enforcement Officer Plumbing Inspector Leonard Gutkin Ed Stein Electrical Inspector Mechanical Inspector INDEPENDENT AUDITOR Rachlin & Cohen Certified Public Accountnats & Consultants 1320 South Dixie Highway, Penthouse Coral Gables, Florida 33146-2964 BOND COUNSEL Ruden, Barnett, McClosky, Smith, Schuster & Russell, P.A. 701 Brickell Avenue, Suite 1900 Miami, Florida 33131 FINANCIAL ADVISOR Guzman & Company Public Finance Financial Advisory Services 701 Brickell Avenue, 11th Floor Miami, Florida 33131 STORMWATER UTILITY Williams, Hatfield & Stoner, Inc. Consulting Engineers 3191 Coral Way, Suite 804 Miami, Florida 33145 COUNCIL APPOINTEES James M. Dowd (term expires 8/1/94) William E. Croysdale (term expires 7/31/94) Special Masters 1fission Statement "To Provide a safe, quality community environment for all islanders through responsible government." I. INTRODUCTION Community Character Statement Upon Which the Master Plan is Based: Key Biscayne should be a residential refuge from the outside would. Development policies should be designed to protect quietude, safety and enjoyment to the maximum extent possible. Commercial and other non-residential development should be sized to meet the shopping needs of residents, but not to attract large numbers of patrons from off the island. This means that there should not be a substantial addition to existing commercial facilities. Future residential development should be at the lowest densities consistent with protection of reasonable property rights. Urban design improvements should make adjacent and functionally compatible land uses better relate to each other rather than being separated from each other by walls and dead-end streets. Pockets of new development are not to be isolated from the fabric of the community. II. BACKGROUND A. At the January 28, 1992 and March 10, 1992 meetings of the Village Board of Trustees, the acquisition of the Tree Farm property located between Crandon Boulevard and Fernwood Road was discussed. Location maps are enclosed and marked Exhibit A and Exhibit B found on pages 10 and 11. B. At the June 9, 1992 meeting, the Board of Trustees authorized the Village Manager to initiate discussions with two (2) firms to prepare appraisals for the Tree Farm property. The firms of Slack and Johnston, Inc. and J. Mark Quinlivan were selected and contracts were executed in late June. The appraisal reports from these firms were both received by mid -August. C. At the September 29, 1992 meeting, the Board instructed the Village Manager and the Village Attorney to open discussions with the property owners to acquire the Tree Farm property. D. At the October 13, 1992 meeting, the Board of Trustees authorized the Village Manager and Attorney to negotiate with the owners to purchase the property. At the same meeting, the Village Manager was instructed to prepare a financial analysis to determine the feasibility of purchasing this property. August 20, 1993 Continued .. . Page 2 E. A financial analysis on the debt payment schedule was presented to the Board during their October 27, 1992 meeting. During that meeting, the Board passed a motion to offer the owners of the Tree Farm property $5 million for its purchase. F The $5 Million Offer was hand delivered to the owners on November 9, 1992 by the Village Attorney and Manager. The owners rejected the offer in a letter dated November 10, 1992 to the Village Manager. G At the November 10, 1992 Council meeting, the Village Manager discussed the cost benefit analysis as it relates to the acquisition of the Tree Farm Property. H. At the November 24th Council meeting, the Council instructed the Manager to prepare and report on the financial implications if the Village acquires the property on future budgets. At the December 8, 1992 meeting the Manager submitted a report that indicated that the Village has the financial ability to acquire this property and at the same time, institute a 2% tax reduction per year over the next 5 years without the Village assuming the Fire/Rescue duties and responsibilities. J. The Village Council, at the same December 8, 1992 meeting authorized an offer of $8.5 million to the owner of the Tree Farm property. This offer was presented by the Village Attorney and the Manager to the owner on December 18, 1992. K. The offer was rejected in a letter dated January 12, 1993 from the owner to the Village Manager. A copy of this letter is enclosed and marked as Exhibit C found on page 12. III. APPRAISALS: A. Appraisals based on 445,356 square feet (10.2 acres) 1. Slack and Johnston, Inc. a. 445,356 sq. ft. @ $18.00 = $ 8,016,408 $ 8,016,408 August 1, 1993 Continued... b. Land -value offered by Slack and Johnston, Inc. 1) None 2. Mark Quinlivan Page 3 a. 445,356 sq. ft. @ $19.09 = $ 8,500,000* $ 8,500,000 * b. Land -value range offered by Mr. Quinlivan 1) 445,356 sq. ft @ $18.50 = 2) 445,356 sq. ft @ $19.09 = 3) 445,356 sq. ft @ $20.00 = Note: *Rounded and amount of second offer IV. COMPROMISE OFFER $ 8,239,086 $ 8,500,000 $ 8,907,124 A. Updated survey 413,569 sq. ft.(9 5 acres)- 6% less acreage than original area B. Cost based on 413,569 sq. ft. by Quinlivan Appraisal 1. 413,569 sq. ft. @ $18.50 2. 413,569 sq. ft. @ $19.09 2. 413,569 sq. ft. @ $20 00 4. 413,569 sq. ft. @ $22.00 $ 7,651,026 $ 7,895,032 _ $ 8,271,380 $ 9,098,518 + $ 244,006 + $ 376,348 + $ 827,138 July 13, 1993 Continued ... C. Compromise Offer Page 4 1. The recommended compromise offer is $9,098,518 based on $22.00 per square foot. a. Offer is ten (10%) higher than highest square foot range recommended by the Quinlivan appraisal which is normal for a municipal government acquisition. ($20.00 to $22.00 per square foot) b. Offer is more than fifteen (15%) higher than original offer on a square foot basis. c. Actual dollar cost over initial offer is $598,518 or 6.6% higher for 6% less land. d. Cost per acre is $957,739. V. SUMMARY OF LAND APPRAISALS BY AREAS A. Cost per sq. ft. 445,456 sq.ft. 413,569 sq.ft. (6% Less) 1. $18.50 $ 8,239,808 $ 7,651,026 2. $19.09 $ 8,500,000 $ 7,895,032 3. $20.00 $ 8,907,120 $ 8,271,3 80 4. $22.00 $ 9,797,832 $ 9,098,518 VI. RECOMMENDATION Based on the aforementioned explanation, I strongly recommend the Village Council authorize a final counter offer of $ 9,098,518 be made to the owners of the Tree Farm property located between Crandon Boulevard and Fernwood Road for the following reasons: July 13, 1993 Continued . .. Page 5 A. The proposed Master Plan recommends 2.5 acres of public recreation and open space per 1,000 people for a total of 25 acres. The actual acreage is 0.73 acres per 1,000 population for a total of 7.3 acres; Calusa Park has 5.0 acres and Key Biscayne Elementary School has 2.3 acres. Even if this level of service is lowered, the Village will be deficient in open space and recreation land. B. The purchase of this tract will increase our public recreation and open space to 16.8 acres or 67 2% of our goal. A very significant beginning. C. No other sizable, centrally located, unused, underdeveloped, uninhabited, and un-planned parcel is available where intensive plantings of vegetation can provide a passive park with lush tree canopy. Such vegetation is something people identify with Key Biscayne. The concept is further explained in a letter from our Landscape Architect marked as Exhibit D found on page 14 dated August 3, 1993. D. To purchase another site or assembly properties will cost considerably more because of high property values, demolition, site improvement and relocation costs, and the strong possibility of neighborhood opposition. E. This purchase will strengthen the existing commercial market by limiting the availability of commercial space available for development as per the Master Plan Consultant's report on Key Biscayne Retail Analysis which indicates sufficient commercial space currently exists until the next century. F. This property would link the residential south and west areas and the retail area core to the north. G. When Incorporation was discussed, it was the intent of the Village incorporators to offer a greater sophisticated level of community recreation service than had been provided by Metro Dade County. This purchase would assist the Village to reach this goal. H. The revised offer is within a reasonable range (Ten Percent 10%) of the original appraisal prepared by Mr Mark Quinlivan, the Village's appraiser. July 13, 1993 Continued ... Page 6 I. If the property is purchased a zoning study should be undertaken to determine if the zoning ordinance should be amended to permit a restaurant on the south side of The Galleria Shopping Center at 328 Crandon Boulevard where one could enjoy a view over the proposed park. Indoor and open air dining could be permitted under the appropriate zoning ordinance modifications. J. The purchase of this property will be an investment in the future of Key Biscayne. K. The acquisition of this property by the Village will dramatically improve the aesthetic characteristics of the grounds and eliminate an eye -sore caused by illegal dumping, lack of maintenance, litter, etc... If not acquired, this condition will continue and it will remain unkept, unless sold to a private developer and/or sub -divided by the owner. L. In addition to the recreational and open space element, the re-establishment and perpetuation of native vegetation environment. Where significant loss of vegetation occurred due to Hurricane Andrew, the replanting of vegetation at this site will benefit the community and promote the conservation and environmental goals and objectives of the Village. M. On July 8, 1993, a financial institution expressed an interest in providing a $9,000,000 loan at 2/3 of the New York prime rate. Please see Exhibit E found on page 15. N. Exhibit F found on page 16 contains bonding scenarios for the tree farm property if the Council decides to issue bonds. VII. BENEFITS FOR PASSIVE RECREATIONAL AREA A. The purchase of this tract will allow for a park which will be a community focal point and will enhance the entrance way to the Royal Biscayne Venture as well as the areas along a portion of Fernwood Road. It certainly would be a welcomed addition by the Galleria Shopping Plaza. This area could be developed into the garden spot of Key Biscayne. It would be our central park. For example the park will provide the following benefits: July 13, 1993 Continued . . . Page 7 1. Preservation rather than development of the last large open space available for passive recreation area that is centrally located to our population. This natural resource should be protected and preserved. 2. This will be the only place which people (particularly children) could conveniently reach by walking or biking in order to simply throw a frisbee or football, play at a tot -lot, jog on a pleasant and safe path or just a place to visit. 3. A location to hold community events such as July 4th activities, Health Fair, Summerfest, fireworks, tree lighting ceremony, etc. 4. Location is accessible from schools, churches, residences, and businesses for multi -purpose uses such as organization picnics, parties, meetings, celebrations, plays and outdoor concerts; 5. Quiet, clean, safe park and open space environment for people of all ages; 6. Coconut palms could be reintroduced as an historic landscape element together with lush natural plantings. The aethestic characteristics of the grounds will be improved. General maintenance will greatly improve the area. Tours might be conducted throughout the park which would be an attraction for our hotels to market; and 7. Playfields should be developed at other sites because of the configuration and width of the land, as well as because of environmental considerations of this site. Neither should the Village Center be built on this site. Please see Exhibit G found on page 26 for an explanation for this opinion. VIII. PARK PLAN A. When the Master Plan for the park is completed it might include the following elements with appeal to all age groups and a multitude of interests: July 13, 1993 Continued... Page 8 1 A Nature Center building where environmental educational activities could occur. These activities could be developed in partnership with Key Biscayne Elementary School. 2. An outdoor amphiteater and lecture area, located on a grassy knoll. 3. Small picnic pavilions where residents could enjoy the natural setting of this park. 4. A shapped tot -lot for use by your children. 5. A meandering jogging/bicycle/ and pedestrian path under the shade of large canopy trees. 6. An open lawn area for passive recreation. 7. Nature trails with small signs identifying the vegetation type. This element could be used as part of the environmental education activities. 8. The preservations of (2) 40' Kapok trees on the west side of this site. 9. The recreation of a coastal hammock using native vegetation such as Coconut palms, Key palms, and trees such as Gumbo Limbo, Mahogany, Green Buttonwood, Pigeon plum, Seagrape, and Geiger tree. In the development of this park, a coastal hammock shall be located. A conceptual plan is Exhibit K on page 31 and a typical nature trail is Exhibit L on page 32. IX. SUMMARY AND CONCLUSION The parcel has excellent potential as a passive recreational area. Since Hurricane Andrew hit Dade County, the natural vegetation on the site has been substantially devastated. Its scarified condition and high visibility lend strong incentive to re -vegetate. It is envisioned that future landscaping and development of the site should complement and promote the beachside setting July 13, 1993 Continued... Page 9 of this community. Given the significant loss of tree canopy on the island due to the hurricane (estimated at 70%) this land also has the potential of having a positive effect on the micro -climate of Key Biscayne. An explanation of the operating and capital costs for this project is combined in Exhibit H found in page 28. The estimated costs to maintain the property, in present state, when acquired is $950.00 per month. This is only grass cutting and liter control. As improvements are made, maintenance expenditures shall increase. Capital Improvements shall be determined by the Village Council. A tentative time schedule is found in Exhibit I on page 29. Based on the aforementioned reasons and the support in the recent community survey which indicated support for this project, I am recommending an offer of $9,098,518 be made to the owner/owners. Please see Exhibit J found on page 30 for the survey results. This central space provides an open space at the heart of the community. Time could be a factor because I am aware of the fact that an offer will be or has been made to subdivide a portion of this tract. The Village is deficient in open space and recreation area and unless a significant land acquisition program is undertaken this deficiency will continue. The future is now. Delay will only increase the cost of future land acquisition for park and recreation open space. Thank you. 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HEATH E[7 ROYAL ?ISCAY NE •J s - �� RI' ,w 6 PRESIDENTIAL ,. pa v il° J w. rvESC.v <3-xr .7a -3a GA LSTA •,/ I /242 A I 'L GALEN r ( :....,7.o0•, a IAI rr..", � fi r,►LENOR ARTS _ ri 9 7 :rtl ,r..l-us. ,.Y• ••-•lilt/ es as iI II707 if '� f' 5 A Exhibit B SITE MAP C. h 6auf/et. 37 .27- 401 7 S.I.Sec.32.T 28a 7 1 :� 15i, 5Ifv, ST. wfT IIISCa4NE ti smssssAOD r /8/ 7 J. MARK QUINLIVAN, MAI, SRPA Exhibit C ,RECISION VALVE CORPORATION / 700 NEPPERHAN AVENUE , PO BOX 309 / YONKERS, NEW YORK 10702 eleoncne Q14 -Q69-6500 / TLX 6818256 PREVALUW / FAX 9"4-969-1985 January 12, 1993 Mr. Samuel Kissinger Village Manager Village of Key Biscayne 85 West McIntyre Street Key Biscayne, Florida 33149 Re: Key Biscayne - Condemnation Dear Mr. Kissinger: We have reviewed the appraisal report which you have sent us in conjunction with the proposed purchase of our vacant land located on the west side of Crandon Boulevard in Key Biscayne, Florida. The appraisal report of Slack & Johnston concludes a market value of $8,000,000 as of August 11, 1992. We note that the report utilizes four sales. only two of which are located in Key Biscayne. In our opinion, the use of the other two sales should not be given any weight as they are not in fact, "comparables", being located in a completely different location from the subject property. With respect to the two sales located in Key Biscayne, we take note that sale number one sold for $23.17 which was adjusted downwards by the appraiser for a net sale price of $22.40 per square foot. The appraiser notes in his comments that the site was improved with an old shopping center at the time of sale and that the shopping center was demolished. We understand that it is basic appraisal practice to add in the cost for the demolit- ion of the shopping center in order to arrive at the true price per square foot for the purchase of the property located at 320-328 Crandon Boulevard. We do not see such an adjustment made by the appraiser in his report. Sale number two located at 800 Crandon Boulevard sold for S31.78 per square foot. The two sales which sold on Crandon Boulevard averaged a selling price of $27.09. The two sales sold on Miami Avenue in Miami and at 88th Place in Dade County sold for considerably lower prices, to wit, 516.72 per square foot and $14.61 per square foot. Thus, the average price of sales number three and four are $15.66 per square foot. Therefore, it is manifestly clear that sales number three and four are not truly "comparable" and should be given no weight at all . cago Brancn BENSENVILLE, 60106 / Tz ecnone 708-595-5151 / FAX 708-595-7966 -eTech DivIslon TRAVELERS REST, SC 29690 z eonone 803-834-8061 / FAX 803-834-4938 Mr. Samuel Kissinger Page 2 - .4ith all due respect, it would appear to us that the use of the comparables located in Key Biscayne support the position that the subject property is worth $28.00 per square foot. A review of the Quinlivan appraisal report leads us to the same conclusions as set forth above. In fact, in that report, the appraiser attempts to utilize square foot parcels of 70,000 and 61,000 square feet as "comparable" sales to the subject property (see Quinlivan sale number one and two). As you know, the subject property is 391,170 square feet. Further- more, sale number one and two in the Quinlivan appraisal are dated 1979 and are too remote in time to be accorded any weight. In summary ,therefore, we have reviewed the appraisal reports that you have forwarded to us and we are not convinced that the conclusions of value found by the respective appraisers are, in fact, fair market value. As stated above, we believe that a S28.00 square foot price is representative of fair market value. In consideration of our discussion and in order to finalize the matter, we would be willing to accept a value of $26.00 per squarefoot and we would be prepared to sign a contract based on this price if this transaction is completed within sixty (60) days. Alternatively, we are prepared to commission an MAI to confirm our market value assessment. Please call me so that we can discuss this matter. Very truly yours, ic)/V Robert H. Abplanalp Chief Executive Officer Exhibit D CIE)A O'LEARY DESIGN ASSOCIATES P.A. LANDSCAPE ARCHITECTURE LAND PLANNING URBAN DESIGN GRAPHIC DESIGN August 3, 1993 Mr. C. Samuel Kissinger Village Manager Village of Key Biscayne 85 W. McIntyre Street Key Biscayne, Florida 33149 Re: Key Biscayne Park Tree Farm Property Key Biscayne, Florida Dear Mr. Kissinger: As discussed, the above referenced property has two existing Ceiba pentandra Kapok Tree) located in the center of the park, near Fernwood Road. These trees are mature specimens in excess of 40' in height with a large caliper trunk and large buttressed root system, and may be the largest post Andrew tree specimens remaining on Key Biscayne. Every effort should be made to preserve these two specimen trees, as well as the Phoenix reclinata palms which abound in the north- west quadrant. The introduction of ballfields onto this site will severely impact the attempt to preserve this existing tree canopy. Key Biscayne Park should be developed as a passive nature park and one that offers a respite to the hustle and bustle of daily urban life. The opportunity of recreating an upland hammock using native vegetation would allow this site to be developed as an education- al nature center as well as a passive community park. Please let me know if you require any additional information.. Very truly yours, A1,1214,‘ WILLIAM A. O'LEARY FAS WAO/cas ()AV PI A7A PR(IFFCCI(Ih1A1 f CLITFD nc1c C ‘v n,nin cr0ccr ci nrr ••1A•u ri ^1,.rr rnr rnrar Exhibit E $9,000,000 @ 4% YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 TOTALS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 TOTALS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 TOTALS INTEREST PRINCIPAL 360,000 324,000 288,000 252,000 216,000 180,000 144,000 108,000 72,000 36,000 1,980,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 9,000,000 INTEREST PRINCIPAL 540,000 486,000 432,000 378,000 324,000 270,000 216,000 162,000 108,000 54,000 2,970,000 TOTAL P & I 1,260,000 1,224,000 1,188,000 1,152,000 1,116,000 1,080,000 1,044,000 1,008,000 972,000 936,000 10,980,000 $9,000,000 @ 6% 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 9,000,000 INTEREST PRINCIPAL 720,000 648,000 576,000 504,000 432,000 360,000 288,000 216,000 144,000 72,000 3,960,000 TOTAL P & I 1,440,000 1,386,000 1,332,000 1,278,000 1,224,000 1,170,000 1,116,000 1,062,000 1,008,000 954,000 11,970,000 $9,000,000 @ 8% 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 900,000 9,000,000 TOTAL P & I 1,620,000 1,548,000 1,476,000 1,404,000 1,332,000 1,260,000 1,188,000 1,116,000 1,044,000 972,000 12,960,000 BALANCE $9,000,000 8,100,000 7,200,000 6,300,000 5,400,000 4,500,000 3,600,000 2,700,000 1,800,000 900,000 0 BALANCE $9,000,000 8,100,000 7,200,000 6,300,000 5,400,000 4,500,000 3,600,000 2,700,000 1,800,000 900,000 0 BALANCE $9,000,000 8,100,000 7,200,000 6,300,000 5,400,000 4,500,000 3,600,000 2,700,000 1,800,000 900,000 0 Exhibit F TO: C. Samuel Kissinger Village Manager FROM: Percy R. Aguila, Jr Guzman & Company DATE: August 11, 1993 RE: Bonding Scenarios for Tree Farm Property Project Per your request, I have run numbers based on current interest rates to determine the annual debt service costs on bonds that would be used to finance the acquisition of the Tree Farm Property. The four bonding scenarios that are summarized below are based on maturity dates of 15 years, 20 years, 25 years, and 30 years, respectively, and assume the acquisition price of the property would be $9.100.000 and that all costs of issuance of the transaction would be paid from bond proceeds. My estimate of costs of issuance totals $180,000. (This figure does not include the underwriter's discount (fee) or the costs associated with bond insurance on the bonds, which are also paid out of bond proceeds.) Scenario Scenario Scenario Scenario I II III IV Principal Amount of Bonds $10,475,000 $10,320,000 $10,245,000 $10,205,000 Acquisition Cost 9,100,000 9,100,000 9,100,000 9,100,000 Maximum Annual Debt Service 1.000.178 836.575 748.027 697.395 Final Maturity 2008 2013 2018 2023 Coverage Required 1.25X 1.25X 1.25X 1.25X Required Utility Tax Revenues 1,250,222 1,045,719 935,034 871,744 The enclosed debt service schedules provide you with further detail of each of the bonding scenarios and I have also enclosed a breakdown of the costs of issuance in Exhibit A. As I noted above, all of the Village's costs of issuance related to this project can be financed with bond proceeds. Accordingly, for reimbursement purposes out of bond proceeds, it will be important for the Village to document all of its expenses related to this project since it began negotiations to acquire the property. EXHIBIT A Set forth below is the itemization of costs of issuance that are now estimated to total $180,000. Costs of Issuance Bond Counsel 35,000 Financial Advisor 25,000 Printing/Official Statement 15,000 Paying Agent/Registrar/Escrow 3,500 Village Counsel Expenses 2,500 Title Insurance 30,000 Surveys/Appraisals 25,500 Other** 38,500 Misc. & Contingency 5,000 $180.000. **Expenses of the Village that have been incurred to date. -1— $10,475,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 15 years -- SOURCES AND USES OF FUNDS Dated: 07/01/1993 Delivery: 07/01/1993 Par Amount of Bonds $10,475,000.00 (Discount)/Premiun Accrued Interest from 7/01/1993 to 7/01/1993 Bond Insurance Premium Rebate Issuer Cash Contribution Transfers from Prior Issue DSR Funds Transfers from Prior Issue Debt Service Fund Total Sources $10,475,000.00 Underwriter's Discount (1.000%) $104,750.00 Costs of Issuance 180,000.00 Gross Bond Insurance Premium 89,810.25 Deposit to Debt Service Reserve Fund (DSRF) 1,000,177.50 Deposit to Project Construction Fund 9,100,000.00 Contingency 262.25 Total Uses $10,475,000.00 Guzman & Company Public Finance Group 8/ 9/1993 3:14 PM -2- $10,475,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 15 years -- DEBT SERVICE SCHEDULE BOND YEAR PRINCIPAL COUPON INTEREST DEBT SERVICE 7/01/1993 7/01/1994 7/01/1995 7/01/1996 7/01/1997 7/01/1998 7/01/1999 7/01/2000 7/01/2001 7/01/2002 7/01/2003 7/01/2004 7/01/2005 7/01/2006 7/01/2007 7/01/2008 520,000.00 535,000.00 555,000.00 575,000.00 595,000.00 620,000.00 650,000.00 675,000.00 710,000.00 740,000.00 780,000.00 815,000.00 855,000.00 900,000.00 950,000.00 2.600% 3.350% 3.700% 4.000% 4.150% 4.350% 4.550% 4.650% 4.700% 4.800% 4.900% 5.000% 5.150% 5.250% 5.250% 476,620.00 463,100.00 445,177.50 424,642.50 401,642.50 376,950.00 349,980.00 320,405.00 289,017.50 255,647.50 220,127.50 181,907.50 141,157.50 97,125.00 49,875.00 996,620.00 998,100.00 1,000,177.50 999,642.50 996,642.50 996,950.00 999,980.00 995,405.00 999,017.50 995,647.50 1,000,127.50 996,907.50 996,157.50 997,125.00 999,875.00 TOTAL 10,475,000.00 4,493,375.00 14,968,375.00 YIELD STATISTICS Average Life Bond Year Dollars Average Coupon Net Interest Cost (NIC) Bond Yield for Arbitrage Purposes True Interest Cost (TIC) Effective Interest Cost (EIC) 8.8129 YEARS $92,315.00 4.8674376% 4.9809078% 4.9597320% 4.9808059% 5.3691396% Guzman & Company Public Finance Group 8/ 9/1993 3:13 PM -1- $10,320,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 20 Tears -- SOURCES AND USES OF FUNDS Dated: 07/01/1993 Delivery: 07/01/1993 Par Amount of Bonds $10,320,000.00 (Discount)/Premium Accrued Interest from 7/01/1993 to 7/01/1993 Bond Insurance Premium Rebate Issuer Cash Contribution Transfers from Prior Issue DSR Funds Transfers from Prior Issue Debt Service Fund Total Sources $10,320,000.00 Underwriter's Discount (1.000%) $103,200.00 Costs of Issuance 180,000.00 Gross Bond Insurance Premium 100,048.95 Deposit to Debt Service Reserve Fund (DSRF) 836,575.00 Deposit to Project Construction Fund 9,100,000.00 Contingency 176.05 Total Uses $10,320,000.00 Guzman & Company Public Finance Group 8/ 9/1993 3:31 PM -2- $10,320,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 20 Years -- DEBT SERVICE SCHEDULE BOND YEAR PRINCIPAL COUPON INTEREST DEBT SERVICE 7/01/1993 - - - 7/01/1994 335,000.00 2.600% 498,155.00 833,155.00 7/01/1995 345,000.00 3.350% 489,445.00 834,445.00 7/01/1996 355,000.00 3.700% 477,887.50 832,887.50 7/01/1997 370,000.00 4.000% 464,752.50 834,752.50 7/01/1998 385,000.00 4.150% 449,952.50 834,952.50 7/01/1999 400,000.00 4.350% 433,975.00 833,975.00 7/01/2000 420,000.00 4.550% 416,575.00 836,575.00 7/01/2001 435,000.00 4.650% 397,465.00 832,465.00 7/01/2002 455,000.00 4.700% 377,237.50 832,237.50 7/01/2003 480,000.00 4.800% 355,852.50 835,852.50 7/01/2004 500,000.00 4.900% 332,812.50 832,812.50 7/01/2005 525,000.00 5.000% 308,312.50 833,312.50 7/01/2006 550,000.00 5.150% 282,062.50 832,062.50 7/01/2007 580,000.00 5.250% 253,737.50 833,737.50 7/01/2008 610,000.00 5.250% 223,287.50 833,287.50 7/01/2009 645,000.00 5.350% 191,262.50 836,262.50 7/01/2010 675,000.00 5.350% 156,755.00 831,755.00 7/01/2011 715,000.00 5.350% 120,642.50 835,642.50 7/01/2012 750,000.00 5.350% 82,390.00 832,390.00 7/01/2013 790,000.00 5.350% 42,265.00 832,265.00 TOTAL 10,320,000.00 6,354,825.00 16,674,825.00 YIELD STATISTICS Average Life 12.02% YEARS Bond Year Dollars $124,145.00 Average Coupon 5.1188731% Net Interest Cost (NIC) 5.2020017% Bond Yield for Arbitrage Purposes 5.1953105% True Interest Cost (TIC) 5.1989464% Effective Interest Cost (EIC) 5.5288834% Guzman 8 Company Public Finance Group 8/ 9/1993 3:31 PM -1- 510,245,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 25 Years -- SOURCES AND USES OF FUNDS Dated: 07/01/1993 Delivery: 07/01/1993 Par Amount of Bonds $10,245,000.00 (Discount)/Premium Accrued Interest from 7/01/1993 to 7/01/1993 Bond Insurance Premium Rebate Issuer Cash Contribution Transfers from Prior Issue DSR Funds Transfers from Prior Issue Debt Service Fund Total Sources $10,245,000.00 Underwriter's Discount (1.000%) $102,450.00 Costs of Issuance 180,000.00 Gross Bond Insurance Premium 111,830.42 Deposit to Debt Service Reserve Fund (DSRF) 748,027.50 Deposit to Project Construction Fund 9,100,000.00 Contingency 2,692.09 Total Uses $10,245,000.00 Guzman & Company Public Finance Group 8/ 9/1993 3:37 PM -2- 510,245,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 25 Years -- DEBT SERVICE SCHEDULE BOND YEAR PRINCIPAL COUPON INTEREST DEBT SERVICE 7/01/1993 7/01/1994 7/01/1995 7/01/1996 7/01/1997 7/01/1998 7/01/1999 7/01/2000 7/01/2001 7/01/2002 7/01/2003 7/01/2004 7/01/2005 7/01/2006 7/01/2007 7/01/2008 7/01/2009 7/01/2010 7/01/2011 7/01/2012 7/01/2013 7/01/2014 7/01/2015 7/01/2016 7/01/2017 7/01/2018 230,000.00 235,000.00 245,000.00 250,000.00 265,000.00 275,000.00 285,000.00 300,000.00 310,000.00 325,000.00 345,000.00 360,000.00 375,000.00 395,000.00 420,000.00 440,000.00 465,000.00 490,000.00 515,000.00 540,000.00 570,000.00 600,000.00 635,000.00 670,000.00 705,000.00 2.600% 3.350% 3.700% 4.000% 4.150% 4.350% 4.550% 4.650% 4.700% 4.800% 4.900% 5.000% 5.150% 5.250% 5.250% 5.350% 5.350% 5.350% 5.350% 5.350% 5.500% 5.500% 5.500% 5.500% 5.500% 515,945.00 509,965.00 502,092.50 493,027.50 483,027.50 472,030.00 460,067.50 447,100.00 433,150.00 418,580.00 402,980.00 386,075.00 368,075.00 348,762.50 328,025.00 305,975.00 282,435.00 257,557.50 231,342.50 203,790.00 174,900.00 143,550.00 110,550.00 75,625.00 38,775.00 745,945.00 744,965.00 747,092.50 743,027.50 748,027.50 747,030.00 745,067.50 747,100.00 743,150.00 743,580.00 747,980.00 746,075.00 743,075.00 743,762.50 748,025.00 745,975.00 747,435.00 747,557.50 746,342.50 743,790.00 744,900.00 743,550.00 745,550.00 745,625.00 743,775.00 TOTAL 10,245,000.00 8,393,402.50 18,638,402.50 YIELD STATISTICS Average Life 15.4705 YEARS Bond Year Dot tars $158,495.00 Average Coupon 5.2956891% Net Interest Cost (NIC) Bond Yield for Arbitrage Purposes True Interest Cost (TIC) Effective Interest Cost (EIC) 5.3603284% 5.3652133% 5.3558779% 5.6526025% Guzman & Company Public Finance Group 8/ 9/1993 3:36 PM -1— S10,205,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 30 Years -- SOURCES AND USES OF FUNDS Dated: 07/01/1993 Delivery: 07/01/1993 Par Amount of Bonds S10,205,000.00 (Discount)/Premium Accrued Interest from 7/01/1993 to 7/01/1993 Bond Insurance Premium Rebate Issuer Cash Contribution Transfers from Prior Issue DSR Funds Transfers from Prior Issue Debt Service Fund Total Sources $10,205,000.00 Underwriter's Discount (1.000%) S102,050.00 Costs of Issuance 180,000.00 Gross Bond Insurance Premium 125,051.79 Deposit to Debt Service Reserve Fund (DSRF) 697,395.00 Deposit to Project Construction Fund 9,100,000.00 Contingency 503.21 Total Uses $10,205,000.00 Guzman & Company Public Finance Group 8/ 9/1993 3:43 PM -2- $10,205,000 Village of Key Biscayne, Florida Utility Tax Revenue Bonds (Tree Farm Property Project) --Bonds are Rated AAA (Insured)/Retired in 30 Years -- DEBT SERVICE SCHEDULE BOND YEAR PRINCIPAL COUPON INTEREST DEBT SERVICE 7/01/1993 7/01/1994 7/01/1995 7/01/1996 7/01/1997 7/01/1998 7/01/1999 7/01/2000 7/01/2001 7/01/2002 7/01/2003 7/01/2004 7/01/2005 7/01/2006 7/01/2007 7/01/2008 7/01/2009 7/01/2010 7/01/2011 7/01/2012 7/01/2013 7/01/2014 7/01/2015 7/01/2016 7/01/2017 7/01/2018 7/01/2019 7/01/2020 7/01/2021 7/01/2022 7/01/2023 165,000.00 165,000.00 170,000.00 180,000.00 185,000.00 195,000.00 200,000.00 210,000.00 220,000.00 230,000.00 245,000.00 255,000.00 265,000.00 280,000.00 295,000.00 310,000.00 330,000.00 345,000.00 365,000.00 385,000.00 405,000.00 425,000.00 450,000.00 475,000.00 500,000.00 530,000.00 560,000.00 590,000.00 620,000.00 655,000.00 2.600% 3.350% 3.700% 4.000% 4.150% 4.350% 4.550% 4.650% 4.700% 4.800% 4.900% 5.000% 5.150% 5.250% 5.250% 5.350% 5.350% 5.350% 5.350% 5.350% 5.500% 5.500% 5.500% 5.500% 5.500% 5.650% 5.650% 5.650% 5.650% 5.650% 532,107.50 527,817.50 522,290.00 516,000.00 508,800.00 501,122.50 492,640.00 483,540.00 473,775.00 463,435.00 452,395.00 440,390.00 427,640.00 413,992.50 399,292.50 383,805.00 367,220.00 349,565.00 331,107.50 311,580.00 290,982.50 268,707.50 245,332.50 220,582.50 194,457.50 166,957.50 137,012.50 105,372.50 72,037.50 37,007.50 697,107.50 692,817.50 692,290.00 696,000.00 693,800.00 696,122.50 692,640.00 693,540.00 693,775.00 693,435.00 697,395.00 695,390.00 692,640.00 693,992.50 694,292.50 693,805.00 697,220.00 694,565.00 696,107.50 696,580.00 695,982.50 693,707.50 695,332.50 695,582.50 694,457.50 696,957.50 697,012.50 695,372.50 692,037.50 692,007.50 TOTAL 10,205,000.00 10,636,965.00 20,841,965.00 YIELD STATISTICS Average Life Bond Year Dollars Average Coupon Net Interest Cost (NIC) Bond Yield for Arbitrage Purposes True Interest Cost (TIC) Effective Interest Cost (EIC) 19.1372 YEARS $195,295.00 5.4466141% 5.4988684% 5.5128108% 5.4923265% 5.7700503% Guzman & Company Public Finance Group 8/ 9/1993 3:42 PM U G 2 - 9 3 M O N 10 :57 O. L E H R Y DESIGN ASSOC Exhibit G P . 03 CJIAt O'LEARY DESIGN ASSOCIATES P.A. LANDSCAPE ARCHITECTURE LAND PLANNING URBAN DESIGN GRAPHIC DESIGN July 26,1993 Mr. C. Samuel Kissinger Village Manager Village of Key Biscayne 85 West McIntyre Street Key Biscayne, Florida 33149 Re: Key Biscayne Park Baseball Field Study Key Biscayne, Florida Dear Mr. Kissinger: Pursuant to your request, enclosed please find our, baseball field study for the above referenced project. As you can see, baseball is a totally unsuitable use for this property because of the con- figuration and width of the land. The baseball configurations reflected exceed the property lines and this does not even allow for the errant foul ball onto Fernwood Road and the adjacent res- idential area. It is our professional opinion that baseball/softball cannot be accommodated in this park and I am sure that any knowledgeable recreation planner or baseball expert would concur. Please let me know if you require any additional information. Very truly yours, O'LEARY DESIGN ASSOCIATES, PA OIL, (0 WILLIAM A. O'LEARY, FASLA WAC/cas 27-93 T U E 9:42 O' L E A R Y DESIGN ASSOC P.03 4 1 �c..tglir` ` \ \ I' it ilgn• �� �� \ �A 1 ��°.F \ \ \ \ \ 5' \ \ Ar \\ \ \ bl .a -r 1.1 1/N scallop WOOS \ scallopscallop `roK. eve 10 u. /p. I / \\ \ \ 1 I I 1 2 O 1 cr W C co O / 2 _ a / BASEBALL RELD LAYOUT AND ce ,' DIMENSIONS COMPILED FROM V / 'A BASEBALL FACIUTY; ITS CONSTRUCTION AND CARE, 1980, BY THE UNITED STATES BASEBALL FEDERATION, INC. 1 r r f SOLE: 1' • '00'-d. CEA O'LEARY CUM AUOCIATU P.A. LIMON �RI*N OW O NO awe 00111111 lAMO �� DratIII,AZA ►1101,031o11a WWI iea it. OIL PIM= VI Nr. *OM WIN JULY 28. 1993 / KEY BISCAYNE PARK BASEBALL FIELD STUDY Exhibit H OPERATING AND CAPITAL BUDGET A. Cost to maintain lot in present condition would be approximately $950.00 per month B. Development on Park for following with cost an estimated $1.6 Million 1. Central, passive park 2. Play meadow 3. Tot -lot 4. Biking, exercising, walking & jogging 5. Gazebo 6. Picnic pavillion 7. Amphitheater 8. Paths, trails and walkways This could be developed as one project or staged over a period of time. I recommend it be developed as one project. The over all cost will be less and no inconvenience to the public. C. When fully developed, the cost to program and maintain the park would be between $150,000 to $250,000, depending on improvements and programs Summary of Expenditures: Present Projected Maintenance $ 11,400 $ 35,000 yr. Improvements 0 $1,600,000 est. Operating 0 $ 200,000 Bond Payment $ 865,000 est. $ 865,000 est. NOTE: Revenue could be generated from many of the activities held at the park. Exhibit I TIME SCHEDULE 1. ACQUISITION a. Resolution to acquire (offer) b. Bond Ordinance c. Title Insurance, Engineer Survey, Title Report d. Acquire title e. Appropriate Funds to maintain f. Resolution to prepare RFP for Park Planner 2. PLANNING a. Define goals and objectives of park b. Advertise for proposals c. Review proposals d. Village Council selects consultant 3. DEVELOPMENT a. Master Plan completed by consultant b. Public presentations c. Master Plan adopted 4. CONSTRUCTION September 1993 October 1993 December 1993 January 1994 January 1994 February 1994 December 1993 January 1994 February 1994 April 1994 November 1994 December 1994 January 1995 a. Council authorizes plan and specifications to be prepared February 1995 b. Advertisement March 1995 c. Bids received and opened April 1995 d. Contract awarded by Village Council May 1995 e. Construction July 1995 EXHIBIT Jr A Partial Listing of the Master Plan Opinion Survey Results 1. Question #11 Does anyone in your household regularly walk or bicycle for recreation and/or exercise? Yes, walk 27.8% Yes, bicycle 6.2% Yes, both 58.8% No 7.2% 2. Question #15, a Acquire land in heart of Village for open space and/ or other public purposes 3. Question #15, k Improve streets and sidewalks for walkers and children on bicycles 4. Question #16, g Central playground/ tot lot for small children First Priority 9.8% Second Priority 6.9% High Priority 18.3% Desirable 25.8% Not Desirable 21.5% First Priority 3.4% Second Priority 6.8% High Priority 39.4% Desirable 27.4% Not Desirable 7.5% First Priority 14.9% Second Priority 10.1% High Priority 18.2% Desirable 16.5% Not Desirable 11.6% O'LEARY DESIGN ASSOCIATES SANOSC n ar,,u;er _:e L. - ILLS. wa f31v1 _ _;_- __, C.. >•-• 1S133 n fl+e Sn._' Sr•C 1.•••••• ! n.e! 33 56 0 LEARY DESIGN ASSOCIATES