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Skyrise Miami's Motion to Intervene

Skyrise Miami's Motion to Intervene

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Published by Al Crespo

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Published by: Al Crespo on Jul 27, 2014
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07/28/2014

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CHARLES
R.
CORD
A
Plaintiff, vs. CITY OF MIAMI, a Florida municipal corporation, and PENELOPE TOWNSLEY, the Miami-Dade County Supervisor
of
Elections, Defendants.
) ) ) ) )
)
) ) ) ) ) ) )
____________________
___________
)
IN
THE CIRCUIT COURT OF THE 11TH JUDICIAL CIRCUIT
IN
AND FOR MIAMI-DADE COUNTY, FLORIDA CIVIL DIVISION CASE NO.: 14-18320 CA
25
SKYRISE MIAMI, LLC S MOTION TO INTERVENE
SkyRise Miami, LLC ( SkyRise ), pursuant
to
Florida Rule
of
Civil Procedure 1.230, moves to intervene as a Defendant in this case because it has a direct and immediate interest in this litigation, the result
of
which could impair or destroy its sublease agreement with Bayside Marketplace, LLC
( Bayside )-which
is also moving to
intervene-and
its development plans for an observation and entertainment tower.
BACKGROUND
1.
In 1985, the City
of
Miami (the City ), as landlord, and the predecessor to Bayside, as tenant, entered into two lease agreements-a retail lease and a parking garage l
ease-for
the City-owned property now known as Bayside Marketplace (collectively, the Lease ). The Lease has been amended several times without referendum.
12360-002/00486845
_I
WHITE
CASE
LLP
Wachovia Financial
Center
,
Miami
Florida
33131-2352
Tel+ 1
305
37
2700
Filing # 16364837 Electronically Filed 07/25/2014 03:02:47 PM
 
Corda v. City ofMiami et
al
Case no. 14-18320 CA
25 2.
On June 26, 2014, the City approved a further amendment to the Lease (the Lease Amendment ), which includes an extension
o
the Lease term from the remaining 46 years
to
99 years and also increased the height and square footage allowable for expansion
o
Bayside Marketplace. The amendment was conditioned upon, among other things, the City receiving an upfront payment
o
$
10
million, minimum base rent
o
3
.5
million per year, between $27 and $35 million in tenant improvements to Bayside Marketplace (including additional parking), and the development
o
SkyRise Miami, a $400 million 1,000-foot observation and entertainment tower, to be developed under a sublease between Bayside and Skyrise (the Sublease ).
3.
In
2
001
, the City amended its City Charter.
t
now requires that leases for City-owned waterfront property exceeding five years be approved by a majority
o
the voters
o
the City. Therefore, the City determined that the Lease Amendment required voter approval.
4.
On June 26, 2014, in accordance with the City Charter, the City adopted a resolution calling for a referendum special election
to
submit the Lease Amendment to the City voters for approval. The referendum
is
scheduled for the August 26, 2014 Primary Election. The ballot question states:
1
216
0-002/0048684 5 _I
SHOULD THE CITY EXTEND THE EXISTING LEASES FROM FORTY-SIX (46) TO NINETY-NINE (99) YEARS WITH BAYSIDE MARKETPLACE LLC, ON THE
16
.
85
ACRES OF WATERFRONT LAND (BAYSIDE MARKETPLACE) CONDITIONED ON THE CITY RECEIVING: UPFRONT PAYMENT OF $10,000,000.00; MINIMUM GUARANTEED YEARLY RENT OF APPROXIMATELY $3,516,002.00 (WHICH ESCALATES); PERCENTAGE RENT; MINIMUM $27,000,000.00 IMPROVEMENTS TO BAYSIDE MARKETPLACE INCLUDING ADDITIONAL PARKING, INCREASED CONTRIBUTION TO MIAMI BAYSIDE FOUNDATION; AND DEVELOPMENT OF A $400,000,000.00 PRIVATELY FUNDED 1,000 FOOT OBSERVATION AND ENTERTAINMENT TOWER (SKYRISE MIAMI).
2
WHITE
CASE
LLP
Wac
h
ov
ia Fi
nanc
i
al
Center
Mi
a
mi
Florida
33131-2352
Tel+ 1
305
37
2700
 
Corda
v
City o.lMiami et
a .
Case
no
14
-18320 CA
25
5
On July 15, 2014, Plaintiff Charles
R
Corda filed a petition for declaratory and injunctive relief (the Complaint ) against the City and Penelope Townsley, the Miami-Dade County Supervisor
of
Elections, seeking removal
of
the ballot question from the August 26 Referendum Special Election. Corda claims the ballot language
is
misleading and violates the fundamental principle and general rule
of
Florida law
of
a 'single subject' per ballot item.
omplaint~
2
Corda's main criticism
of
the referendum is that it contains language regarding both the renovations
of
Bayside Marketplace and development
of
the SkyRise Miami tower. Corda contends that the construction
of
the SkyRise Miami tower
is
a separate subject from the renovations
to
Bayside Marketplace and belongs on a separate ballot.
6
Corda has not joined Bayside or SkyRise as Defendants in this action, despite their clear interest in the outcome
of
this litigation.
RGUMENT
7
As the sub-lessee
of
Bayside and the developer
of
SkyRise Miami, SkyRise has a direct and immediate interest
in
this litigation, the subject
of
which
is
whether ballot language that, in part, authorizes development
of
SkyRise Miami may be submitted to the voters at the August 26 referendum election.
8
f
Plaintiff succeeds on his claims and the ballot language
is
removed from the August 26 referendum, the result will be devastating
to
SkyRise's plans for development
of
the tower. Voter approval
of
the Lease Amendment is necessary for SkyRise to proceed with construction and obtain financing. Timing is critical. The outcome
of
this action could render SkyRise Miami non-viable and the Sublease with Bayside moot.
9
Anyone claiming an interest in pending litigation may at any time be permitted
to
assert his right by intervention. Fla.
R
Civ.
P
1.230. Intervention should
be
liberally
12360·002/00486845 _I
3
WHITE
CASE
LL
P
Wachovia
Fi
nancial
Center
,
Miami
,
Flo
rida
33131 2352
Tel+ 1 305
37
2700

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