1. ISLAND GARDENS PROJECT MIAMI CITY COMMISSION MUSP HEARING JUNE 24, 2004

2. ONLY POSSIBLE LOCATION CONSISTENT WITH MASTER PLAN CONSISTENT WITH RFP 68% VOTER REFERENDUM NO ADDITIONAL ZONING CHANGES NO IMPACT TO DRI & TRAFFIC SFRPC & DCA APPROVALS SUBSTANTIAL PUBLIC BENEFITS UNAMIOUS APPROVAL FROM UDRB, SHORELINE, & WATERFRONT & PAB COMPLIED WITH REASONABLE REQUESTS TIGHT TIME SCHEDULE PROJECT HIGHLIGHTS

3. ONLY VIABLE SITE DEEP WATER CHANNEL COMMERCIAL MARINE BASIN LANDSIDE TRANSPORATION CONNECTORS MIAMI – MIAMI BEACH CONNECTOR PORT & CRUISE FACILITIES SERVICES REPAIR & SERRVICE FACILITIES SECURITY, COAST GUARD, PILOTS, USDHS TOURISM FACILITIES –SEAPLANE BASE –HELIPORT –RECREATION & AMUSEMENT PARKING GARAGES

5. BALLOT QUESTION NO. 1 AUTHORIZING 45-YEAR LEASE OF CITY-OWNED UPLAND/SUBMERGED LAND ON WATSON ISLAND Shall the City lease City-owned land consisting of 24.2 total upland and submerged acres on Watson Island to Flagstone Properties, LLC for development of a mega yacht marina, fish market, hotels with timeshare units, a maritime museum, public gardens, cultural facilities, restaurants, retail and support facilities, for 45 years with two 15-year renewals, subject to capital investment, subject to a minimum annual guaranteed rent of $2,000,000 and other conditions the City may require?

6. PROJECT OBJECTIVES LEADING MEGA YACHT FACILITY FOR NEXT 30 YEARS LANDMARK GATEWAY ICON – DOWNTOWN ORIENTATION MAKE MIAMI A GLOBAL CITY AND SOUTH FLORIDA A GLOBAL COMMUNITY ACCESSIBLE GARDEN ENVIRONMENT WITH LANDSCAPED ROOFS THAT TERRACE TO WATERFRONT OPEN PUBLIC AREAS & ACCESS SEPARATION OF SERVICE AND SECURITY FROM GUEST PEDESTRIAN & VEHICULAR COMPATIBLE WITH FUTURE PLANS FOR FDOT PROJECTS

7. LEADING STATE-OF-THE-ART MEGAYACHT HARBOR FOR THE NEXT 30 YEARS

8. LANDMARK GATEWAY ICON

9. GARDEN ENVIRONMENT

11. SECURITY COMPLIANT

12. COMPLIANT WITH FDOT

13. PUBLIC BENEFITS PROVIDED CREATE A GLOBAL PROJECT FOR A CITY GLOBAL IMAGE GARDEN AND OPEN AREAS ACCESSIBLE TO THE PUBLIC (MORE THAN 60%) 950 FTES & 3,040 CONSTRUCTION JOBS. MARITIME GALLERY FISH MARKET FISHING PIER $2,000,000 ANNUALGUARANTEED PLUS PERCENTAGE RENTAL REVENUE $1,000,000 ANNUAL CONSTRUCTION RENT RECURRING CITY TAX INCOME $4,313,865 RECURRING COUNTY TAXES $6,813,782 ONE-TIME FEE BENEFITS $3,460,566 OVERALL ECONOMIC IMPACT $521.7 MILLION ROADWAY IMPROVEMENTS, LANDSCAPING AND BEAUTIFICATION FAIRCHILD TROPICAL GARDENS & HISTORICAL MUSEUM OF SOUTH FLORIDA NUMEROUS FOUNTAINS AND PUBLIC AREAS FESTIVAL CALENDAR VARIED PRICE POINT RETAIL SHOPS AND RESTAURANTS CIVIC ARTS TRUST $1,000,000 MASTER PLAN &ADDITIONAL IMPROVEMENT TO SOUTH PARK

15. ISLAND GARDENS PROJECT WATSON ISLAND NEIGHBORHOOD WORKSHOPS JUNE 24, 2004 MIAMI OUTBOARD CLUB JUNE 26, 2004 1000 VENETIAN WAY

17. COMMUNITY CONCERNS To date, we have held 19 public hearings, 2 Workshops for Watson Island and Venetian Causeway neighbors, and numerous meetings with our immediate island tenants. The Workshops identified 49 issues brought up by neighbors on the following topics: Traffic7Access3Shadows2TOTAL49 Use7Benefits3Boats1 Parking6Noise3School1 Road5Security3Screen1 Views4Fish Market2Site1 NOT PROVIDING ENOUGH PUBLIC ACCESS & AMENITY (see “BENEFITS PROVIDED BY FLAGSTONE”) AMENITY GUARANTEES The Lease, and all pending land use approvals require that the property be developed in compliance with the site plan approved under the MUSP process. All of the site plans clearly include the Public Amenities. The Lease incorporates by referencing Flagstone’s proposal submitted in response to the RFP. That proposal clearly outlines all public amenities to be provided by Flagstone. FISH MARKET ACCESS IS RESTRICTED In fact, Fish Market is accessible to the project, and to residents as well. INAPPROPRIATE USE OF LAND Consistent with Master Plan passed Jan. 25, 1996 which was adopted unanimously by PAB on 01-17-96 subsequent to Public Hearing (PAB 2-96). The Flagstone project passed Nov. 2001 General Election Referendum by 68% TIME SHARES PROHIBITED City’s “RFP” stated no residential uses permitted, but hotel and offering of certain timeshare licenses are. The referendum included time shares. The lease between Flagstone and the City (the “Lease”) provides that Flagstone is entitled to sell timeshare licenses which comply with Section 721.05(35), F.S.:35 “Timeshare license” means a right to occupy a timeshare unit, which right is neither coupled with a freehold interest, nor coupled with an estate for years with a future interest, in a timeshare property”. The licenses, which will be sold by Flagstone, fully comply with that statute. HOTEL USE IS MORE THAN 20 ACRES The entire land side lease parcel is only 10.7 acres, and the hotels are only a fraction of that area. PRIVATE CLUBS NOT PERMITTED There are no "Private Clubs" Staff lounges are for crews and are required by industry standards.

18. CONCESSIONS MADE ENTRY BLVD (SOUTH @ EL 9) SHOULD BE BOTH INGRESS/EGRESS Flagstone will make this concession requested by the Children's Museum. DROP OFF SHOULD MAINTAIN CM PEDESTRIAN PLAZA Flagstone will make this concession requested by the Children's Museum. MINIMIZE ELEVATION DIFFERENCE OF PERIMETER ROAD WITH MUSEUM Flagstone is required to comply with both FDOT and City roadway and engineering standards, but will attempt to minimize the differences. MITIGATE DRAINAGE ONTO MUSEUM SITE FROM PLANNED ROAD Flagstone is required to comply with both FDOT and City roadway and engineering standards including drainage. PROVIDE CONSTRUCTION STAGING OPERATIONS PLAN Flagstone agrees to City review and approval of a construction staging and operations plan. CONSTRUCTION STAFF TO PROVIDE IDENTITY CREDENTIALS Flagstone agrees to City review and approval of an island wide security plan that includes all tenants as well as construction workers. PROVIDE PEDESTRIAN ACCESS FROM PROJECT TO MUSEUM SPECIFICALLY FOR CHILDREN AND DISABLED Flagstone agrees to provide ADA compliant walkways and lifts as required by Code, and a security plan relative to children, supervised by the City. PROVIDE SUFFICIENT PARKING FOR FACILITY AND STAFF To the contrary, Flagstone has exceeded parking requirements,,but is on record that at peak, it will shuttle staff from mainland stations and parking. AVOID ENCROACHMENT ON MUSEUM PARKING SPACES It would be contrary to good policy and relations for Flagstone to encroach on Museum parking. PROVIDE LANDSCAPE & SCREENING TO GARAGE Flagstone agrees and desires the landscape approach to its garage elevations. However, the Children's Museum and 1000 Venetian Causeway resident should request such condition, since the Urban Design Review Board stipulated an architectural solution in lieu of a landscape solution to this issue. BUILDING LIGHTING SHOULD NOT BE OFFENSIVE Flagstone agrees that in addition to the conventional Building Department regulations governing exterior lighting, that the City Assistant Director of Planning and Zoning be empowered to review and assure that each island tenant's exterior lighting is not offensive to it's neighbors. NOISE MAY DISTURB ANIMALS Flagstone agrees that City Assistant Director of Planning and Zoning be empowered to review and assure that each island tenant's noise control, abatement, and reduction activities are not offensive to their neighbors. EVALUATE SPECIAL EVENTS (OFFSITE& ONSITE WEEKENDS) TRAFFIC AND PARKING AND PROJECTIONS The City's traffic consultants have looked beyond MacArthur Causeway. The data shows that weekend peak hourly volumes are lower than weekday peak hour volumes. Flagstone agrees to participate with all other island tenants in development, documentation, and enforcement of City Class I Special Event Permits. Based on the MUSP Traffic Studies, Flagstone will pay regional transportation mitigation fees.

19. TRAFFIC TRAFFIC METHODOLOGY AND STUDY APPROVALS INCLUDED –(2) State Agencies –(1) Regional Agency –(2) Quasi-Public Authorities –(2) City Agencies –(5) Traffic Consultants –DCA has concurred REGIONAL NOPC TRAFFIC STUDY –Expanded Downtown DRI area to Watson Island –Included Miami Beach and Venetian Causeway –Analyzed the inclusion as well as exclusion of the Tunnel –Keeps DRI trips constant –Created No significant change in traffic impacts –Does not even require additional bridge openings on Venetian Causeway LOCAL MUSP TRAFFIC STUDY –Weekend hourly volumes are lower than weekday peak hour volume –Included driveways and nearby intersections –Met applicable LOS standards –Project will pay regional transportation impacts mitigation fees

20. TRAFFIC MacArthur Causeway, is classed as an arterial, but functions somewhere between an arterial and a freeway due to the absence of driveways that impede arterial traffic. Based on the comments from Miami Beach, the applicant revisited the analysis using the figures for an arterial and the analysis was still sufficient. While the roadway level of service (LOS) was not met, the 5% threshold was not exceeded and the resultant impact is not considered significant. Only if both the LOS fails and the 5% threshold are exceeded is the impact of a project considered significant per the approved methodologies.

21. TRAFFIC CITY OF MIAMI BEACH WAS INVOLVED FROM THE OUTSET –Of 32 critical public approvals, only 9 were not advertised –Mayor Diaz specifically met with City Manager and Staff of Miami Beach on 08-28-02 requesting their support –Staff was involved in all SFRPC meetings including the Approved NOPC Methodology of 11/25/02 –Miami Beach has made no specific traffic related proposals for consideration –If Miami Beach wishes to claim substantial deviation from the DRI, the DCA is the proper forum –Broader Issues beyond this project between municipalities should be resolved before the MPO

24. PROJECT PUBLIC & ADVERTISED MEETINGS

25. ISLAND GARDENS PUBLICLY ACCESSIBLE AREAS- GROUND LEVEL ONLY

38. “ The Watson Island Site is one of very few sites on the South Florida Coast that can provide the advantages necessary to develop a facility such as this. In fact, it may be the only viable site.” ……Watson Island Mega Yacht Marina Design and Concept, September, 1994

39. 1913

40. 1926

41. 1952

45. WORKSHOP OBJECTIVES History Design External Factors Questions & Clarifications Concerns & Requests

47. LANDMARK GATEWAY ICON

48. DOWNTOWN ORIENTATION

49. DOMESTICATED CIRCULATION SECURED ZONES SECURITY COMPLIANT

50. “SANITIZED” SECURITY CORRIDOR SECURITY COMPLIANT

51. SECURITY AREA