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Planning Board RecommendationM. BEACH PLANNING DEPARTMENT Staff Report & Recommendation Planning Board TO: FROM: SUBJECT: Chairperson and Members Planning Board Jorge G. Gomez, AICP Planning Director File No. 1741 - Miami City Ballet DATE: December 20, 2005 Due to the impending threat of Hurricane Wilma, the October 25, 2005 meeting was cancelled and the items scheduled for that meeting were automatically continued to the November 22, 2005 meeting at 3:00 p.m. or as soon thereafter as they can be heard. At the November meeting, the Board requested additional information and continued this item to the December 20, 2005 meeting. The City of Miami Beach is requesting approval of a lease between the City and Miami City Ballet pursuant to the Charter of the City of Miami Beach Section 1.03(b)3., wherein the sale, exchange, conveyance or lease of ten years or longer of City-owned property requires approval by a majority vote (4/7) of all members of the Planning Board and five-sevenths vote of all members of the City Commission. BACKGROUND The Miami City Ballet, Inc. ("Ballet") is the lessee under a Ground Lease with the City of Miami Beach as lessor of City-owned land located at 2200 Liberty Avenue. In 1999, the City contributed $2,500,000 towards the cost of constructing the building for the Ballet, (hereinafter the building and all improvements thereon are referred to as the "Building"). The Building was completed in 1999 at a cost of $7,000,000. The Ballet has encountered financial problems recently and is in need of additional funding. Efforts to obtain institutional financing have been unsuccessful. The transactions addressed in this Term Sheet are intended to provide the Ballet with additional funds and to allow the City to acquire title to the Building. The Ballet has continually made the building available to the City as a polling place for elections as well as an emergency management command center during hurricanes. They have also donated or rented this facility, when available, to other arts groups, such as: New World Symphony, the Miami Light Project and the South Beach Gay Men's Chorus, as well as permitted television, film, and music video production companies, and photographers doing fashion shoots to use the facility. ANALYSIS This request is the first or lease of ten years or longer of City-owned property to come before the Planning Board subject to the Charter provision; absent any specific guidelines, the Planning Department has determined that the analysis required by Section 82-38 of the City Code (commonly known as the Shapiro Review) is appropriate for the review of these types of requests. This analysis is required when City-owned property is proposed for sale or lease. Exhibit "C" Planning Department File No. 1741 - Miami City Ballet December 20, 2005 Page 2 Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of city-owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease. The following is an analysis of the eight criteria delineated in Section 82-38 of the Code: ,, Whether or not the proposed use is in keeping with City goals and objectives and conforms to the City Comprehensive Plan. The City of Miami Beach owns the land and leases it to the Miami City Ballet Studio, who owns the building and the improvements on the property. Miami City Ballet is characterized as a Cultural Institution that serves the cultural needs of the entire community. The Future Land Use Map of the City's Comprehensive Plan indicates that the site is designated PF, Public Facilities. The Lease Agreement between the City and the Miami City Ballet for the management and operation of the Miami City Ballet Studio facility would not contravene the land use designation in the Comprehensive Plan. . The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the City shall determine the potential impact of the project on City utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed, the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. The site currently contains a Cultural Institution, and the Lease Agreement between the City and the Miami City Ballet for the management and operation of the Miami City Ballet Studio facility is not expected to have any negative impact on the surrounding area. . A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the City's revenue base, reducing City costs, creating jobs, creating a significant revenue stream and improving the community's overall quality of life. The Lease Agreement between the City and the Miami City Ballet for the management and operation of the Miami City Ballet Studio facility is in keeping with the community needs to provide adequate cultural amenities for the surrounding area, thereby improving the community's overall quality of life. w Determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views, or create other environmental intrusions, and evaluation of the design and aesthetic considerations of the project. The City's Historic Preservation Board previously approved the construction of the subject building, which exists in its present form at the subject location. . The impact on adjacent properties, whether or not there is adequate parking, street, and infrastructure needs. Planning Department File No. 1741 - Miami City Ballet December 20, 2005 Page 3 Sm . . There should be no negative impact on adjacent properties. While parking is a problem throughout the City, the proposed lease should not significantly increase the need for parking, since the facility is currently in operation and there is no proposed increase in seats, no further infrastructure needs are anticipated. A determination as to whether or not alternatives are available for the proposed disposition, including assembly of adjacent properties, and whether the project could be accomplished under a private-ownership assembly. There are very few alternative locations with the appropriate zoning/land use classification to accommodate this type of Cultural Institution in the neighboring area. Assembly of adjacent properties is not feasible. Within the constraints of public objectives, the department should examine financial issues such as job generation, providing housing opportunities, and the return to the City for its disposition of property. The retention of the Miami City Ballet within Miami Beach will continue to provide jobs and educational opportunities for our community. Such other items as the Planning Department may deem appropriate in analysis of the proposed disposition. Planning Staff has not identified any further items. Attached is a joint memorandum from Patricia Walker, Chief Financial Officer and Raul, J. Aguila, First Assistant City attorney that addresses the terms of the least between the City of Miami Beach and Miami City Ballet. This joint memorandum is self-explanatory. STAFF RECOMMENDATION In view of the foregoing analysis, staff recommends that the Planning Board approve the request for a long-term lease between the City of Miami Beach and the Miami City Ballet. JGG/RL/ML c: Gary Held, First Assistant City Attorney Attachments: Memorandum F:\PLAN\$PLB~005\12-20-05\1741 - Miami City Ballet rpt 12-20.doc Planning Department File No. 1741 - Miami City Ballet December 20, 2005 Page 4 SITE / ZONING MAP Exhibit "D" Purchase and Sale Agreement (Attached)