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001-2007 Requested Information - New World Symphony lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov MEMORANDUM 001-2007 .,.,."".) DATE: Richard Steinberg, Commissioner Jorge M. Gonzalez, City Manager \.;-1 February 12, 2007 0 Requested Information - New World Symphony RECEIVED 2001 FEB I 2 AM II: 59 CITY CLERK'S OFFICE TO: FROM: SUBJECT: Pursuant to your request, please find below additional information with regard to the New World Symphony ("NWS"). 1. Programming of Screen Article 1 of the Development Agreement defines the Screen as "... a large outdoor audio and visual presentation system used for presentations to viewers outside of the SoundSpace Building". The Screen is intended to contain shared programming by NWS, various arts organizations, and the City. Section 6.2 of the Agreement specifies this requirement and provides a timeline for the completion of a management and operating agreement for the Screen. Section 6.2 is reprinted below: "Section 6.2 - Operations - Tenant will collaborate with the City and other arts organizations with respect to their use of the Screen in accordance with the Public Benefits set forth on Exhibit C. Prior to issuance of the Building Permit, the Parties will negotiate an agreement for the management and operation, including without limitation, the scheduling and content of programming for the Screen. The Parties agree that there shall be no commercial advertising permitted for display on the screen". Exhibit C, referred to in Section 6.2 states the following: "SoundSpace Impact Statement - NWS is prepared to provide regular video programming for the park throughout the year. This programming will take many formats, from broadcasting entire NWS concerts and portions of concerts, to special events and other creative video presentations. Programming for the park will also feature other cultural organizations, local to international, and can include anything from dance to film to other forms of musical and visual art presentation. The commitment of NWS resources for this programming will be at least $200,000 annually. The City of Miami Beach will work ,with NWS to develop specific seasonal events programming by other Miami Beach cultural organizations, at their expense, particularly for the summer season, whether or not such programming actually includes NWS". 2. Right to Mortgage NWS has a specific right in Section 10 of the Development Agreement to mortgage their leasehold interest without City approval if the mortgage is held by one or more Recognized Mortgagee(s). The Proposed First Addendum contains language modifying these rights by limiting to three (3) the number of Mortgagees that have rights under the Agreement (Section 3(h) of the Proposed First Addendum). Section 11 of the Development Agreement states that, "NWS may mortgage its leasehold interest to secure debt by one or more recognized Mortgagee(s) without the City's approval, but cannot under any circumstance, encumber City's fee simple interest in the Premises". 3. Milestone Dates Please find attached a summary of the key milestones for the Project. 4. Acceleration of Construction for the City Hall Garage - this will be addressed under a separate cover. I hope this responds to your questions. Please feel free to contact me if you need additional information or any clarification. Attachment C: Mayor and Commission Jose Smith, City Attorney New World Symphony - Development Agreement Timeline Proiection - (As of February 1. 2007) Date 01/05/04 03/29/04 OS/25/04 07/29/04 08/24/04 09/08/04 Event/Milestone (Actual Occurrence and/or Scheduled Event) Development & Lease Agreement with NWS approved. Three project concept plan alternatives presented by NWS and reviewed by the CMB. Preliminary Planning Board review of plan alternatives. Three new concept plan alternatives presented to CMB for consideration - maintaining Drexel Ave open to traffic. New concept plan alternatives presented to Planning Board. Concept Plan #4 favored. Project Concept Plan approval by City Commission (Default deadline for Commission approval- 10/01/05 see 2.2) Referral to Finance Committee to consider amending Gehry's contract to include park design. Commence preliminary plans/specs (16 months) See 2.3(b) 1 0/26/04 01/09/06 01/27/06 Finance Committee recommends in favor of amending Development Agreement to expand the NWS' scope to include the design and development of the Zone 1, comprising the park, Drexel Avenue between North Lincoln Lane and 1yth Street and improvements adjacent to the new garage, at the Owner's cost and expense, not to exceed $10,000,000; Zone 2, comprising the Theater of the Performing Arts entry landscaping at the Owner's cost and expense, not to exceed $1,150,000; and Zone 3, comprising North Lincoln Lane improvements, at the Owner's cost and expense, not to exceed $500,000. Preliminary plans/specs delivered to Owner per See 2.3(b) Owner approves preliminary plans/specs, authorizing NWS to proceed with design development, subject to comments and concerns by Planning & Zoning and other reviewing departments. New World Symphony Development and Lease Agreement Timeline (as of Feb 1, 2007) - Page 2 Date 11/13/06 11/14/06 11/30/06 12/06/06 02/12/07 (Scheduled) 02/14/07 (Scheduled) 02/20/07 (Scheduled) 03/06/07 (Scheduled) Event/Milestone (Actual Occurrence and/or Scheduled Event) Preliminary one-on-one review of plans/specs by DRB members Commence final plans/specs (14 months) See 2.4 Finance Committee recommends in favor of amending Development Agreement to expand the NWS' to include the Park, at a total "design to" cost of $13,810,000; the additional Improvements (including the addition of the TOPA entry-way Landscaping at total combined cost of $7,750,000); and, the Garage, at a total cost as provided for in the DA, of $12,250/space and 12.5% soft costs. The Committee further recommended conducting a special Commission workshop to consider increasing the cost of Building the Garage to $15,210,135, as well as a request from the NWS for a Grant-in-Aid in the amount of $15 Million. First Reading of proposed First Addendum to the Development Agreement, as amended by the Finance Committee, with a provision, that in lieu of a repayment Guaranty by NWS, that a Right-of-Assignment be provided to allow CMB to utilize NWS Architect and G.C. to proceed with construction of the Park and The Garage, in the event of termination by NWS. Special Commission Workshop to consider additional cost of Parking Garage Component; Guaranty provisions from NWS, (in the event of termination or default); and, a Grant-in-Aid request for $15 Million towards its share of the Project. Second Reading of proposed First Addendum scheduled, to be open and continued to 02/20/07. Second Reading of proposed First Addendum scheduled Formal plan review by DRB New World Symphony Development and Lease Agreement Timeline (as of Feb 1, 2007) - Page 3 Projectedl Outside Date Event/Milestone 12/07/07 (Estimated) Final plans/specs to Owner (w/in 14 months of preliminary DRB review) - (1 month to review) 01/07/08 (Estimated) Final plans/specs to Planning Board for approval, per direction of City Commission on 09/08/04 (3 months) Note: Prior to obtaining building permit, CMS & NWS to negotiate Management and Operating Agreement for programming of Screen. 03/07/08 (Estimated) Apply for Building Permit (3 months) Note: Prior to commencing construction, payment and performance bond to be provided to CMS or Letter of Credit = to 100% of cost of improvements. 06/06/08(**) 08/06/10 Commence Construction Sound Space Est Completion of Sound Space (26 mos) Note: (*' Estimated outside dates based upon time frames specified in referenced sections of Development Agreement. Note: (**' Construction cannot commence until the earlier of (a) CMB has completed construction and begun operating City Hall Exp Garage or (b) alternate replacement parking acceptable to CMB has been identified by NWS; or (c) May 30,2007. Sec. 2.5(e) Note: Time line does not include Garage or Park component. TDH:kob F:lddhpl$aIlIROAINWSINewWorldSymphony _ TimeEst.doc