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2003-25247 Reso RESOLUTION NO. 2003-25247 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE FIRST PUBLIC HEARING, IN ACCORDANCE WITH THE REQUIREMENTS OF SECTIONS 163.3220 - 163.3243, FLORIDA STATUTES, ALSO REFERRED TO AS THE FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, ON WEDNESDAY, JULY 30, 2003 AT 10:00 A.M., TO CONSIDER APPROVING, ON FIRST READING, A PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE NEW WORLD SYMPHONY FOR THE DEVELOPMENT OF THE SURFACE PARKING LOT, BOUNDED BY 17TH STREET TO THE NORTH, LINCOLN LANE NORTH TO THE SOUTH, WASHINGTON AVENUE TO THE EAST AND PENNSYLVANIA AVENUE TO THE WEST, FOR CONSTRUCTION OF AN APPROXIMATELY 50,000 SQUARE FOOT EDUCATIONAL, PERFORMANCE, AND RECORDING FACILITY WITH AN EXTERIOR SCREEN ("SOUNDSPACE"), AND AN APPROXIMATELY 320-SPACE (+/-) PUBLIC PARKING GARAGE FACILITY. WHEREAS, concurrent with completion of the first phase of the 1 ih Street Master Plan study by Zyscovich, Inc., in October, 2001, (Master Plan), the Administration has been in negotiations with the New World Symphony (NWS) regarding its proposed lease of a portion of the 17th Street Surface Parking Lot to accommodate the development and construction of an approximately 50,000 square foot educational, performance, and recording facility with an exterior screen, referred to as "Soundspace", and an adjacent 320 (+/-) public parking garage facility (the Project); and WHEREAS, on April 21,2003, at a meeting of the Finance and Citywide Projects Committee, the Administration presented a summary of preliminary terms for the Project, which continues to serve as a basis for ongoing negotiations towards the Development and Ground Lease Agreements; and WHEREAS, concurrent with the negotiations, the NWS has and continues with its outreach initiative, scheduling meetings with various Citywide committees to advise on the Symphony's expansion plans and to obtain community input relative to the proposed Project; and WHEREAS, on June 17, 2003, the Administration provided the Finance and Citywide Projects Committee with an updated term sheet and reported that the intent was to have a Development Agreement presented for a first reading at the July 30, 2003 Commission meeting. WHEREAS, on July 2, 2003, the City Commission recommended for the New World Sym~hony to also contemplate the adjacent surface parking lot, bounded to the north by 1 i Street, Lincoln Lane North to the south, Washington Avenue to the east and by Drexel Avenue on the west, in order to determine the best location for the Project. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby set the first Public Hearing, in accordance with the requirements of sections 163.3220-163.3243, Florida Statutes, also referred to as the Florida Local Government Development Agreement Act, on Wednesday, July 30,2003 at 10:00 A.M., to consider approving, on first reading, a proposed Development Agreement between the City of Miami Beach and the New World Symphony for the development of the surface parking lot, bounded by 17th Street to the north, Lincoln Lane North to the south, Washington Avenue to the east and Pennsylvania Avenue to the west, for construction of an approximately 50,000 square foot educational, performance, and recording facility with an exterior screen ("Soundspace"), and an approximately 320-space (+/-) public parking garage facility. PASSED and ADOPTED this 2nd day of July 200 MAYOR David Dermer ATTEST: ~tif~ I CITY LERK Robert Parcher JMG:CMC:kob T:\Agenda\2003\JuI03\NWS _Public_Hearing .doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUnON ~ ~-D.b Date CITY OF MIAMI 'BEACH COMMISSION ITEM SUMMARY ~ Condensed Title: A Resolution setting a public hearing to consider approving on first reading, the proposed Development Agreement between the City of Miami Beach and New World Symphony, a not-for-profit organization, for the development of the surface parking lot, bounded by 1 ih Street to the north, Lincoln Lane North to the south, Drexel Avenue to the east and Pennsvlvania Avenue to the west. Issue: Concurrent with completion of the first phase of the 1ih Street Master Plan study (Master Plan) by Zyscovich, Inc., in October, 2001, the Administration has been in ne~otiations with the New World Symphony (NWS) regarding its proposed lease of a portion of the 1 i Street Surface Parking Lot to accommodate its Soundspace design concept (the Project). On April 21, 2003, at a meeting of the Finance and Citywide Projects Committee, the Administration presented a summary of preliminary terms which continues to provide a basis for negotiations towards a Development and Lease Agreement. At the time, certain key issues were identified which remain to be addressed, including the lay-out and design of the proposed facility; the amount of the City's contribution towards the design and construction of the parking structure to partially serve the facility's needs; the timing for the construction of replacement parking that will be displaced by the project (City Hall expansion lot); and the configuration and design of the park contemplated for the east surface lot. On June 17, 2003, the Administration provided the Finance and Citywide Projects Committee with an updated term sheet, a copy of which is attached to this Memorandum and reported that the intent was to have a Development Agreement drafted in time for a first reading at the July 30, 2003 Commission meeting. Item Summa IRecommendation: The Administration recommends setting a Public Hearing to coincide with the regularly scheduled meeting of the Redevelopment Agency on Wednesday, July 30,2003, at 10:00 A.M., to consider approving, on first reading, the proposed Development Agreement between the City of Miami Beach and New World S m hon . Adviso Board Recommendation: Cultural Arts Council - March 7, 2003 Lincoln Road Marketing Association - March 11, 2003 Convention Center Advisory Board - April 29, 2003 Transportation and Parking Committee - May 13 and June 3,2003 (Refer to motion in attached memo) Finance and Ci ide Pro'ects Committee - A ril29 and June 17, 2003 Financial Information: Amount to be expended: Source of Funds: roved D T:\AGENDA\2003\apr3003\consentlrdaplanamend. sum. doc AGENDA ITEM C 7 D DATE 7-d-03 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.fl.us To: From: Subject: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. GonzaleztJfJ C City Manager j'-' Date: July 2,2003 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE FIRST PUBLIC HEARING, IN ACCORDANCE WITH THE REQUIREMENTS OF SECTIONS 163.3220 _ 163.3243 FLORIDA STATUTES, ALSO REFERRED TO AS THE FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, ON WEDNESDAY, JULY 30, 2003 AT 10:00 A.M., TO CONSIDER APPROVING, ON FIRST READING, A PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE NEW WORLD SYMPHONY FOR THE DEVELOPMENT OF THE SURFACE PARKING LOT, BOUNDED BY 17TH STREET TO THE NORTH, LINCOLN LANE NORTH TO THE SOUTH, DREXEL AVENUE TO THE EAST AND PENNSYLVANIA AVENUE TO THE WEST, FOR CONSTRUCTION OF AN APPROXIMATELY 50,000 SQUARE FOOT EDUCATIONAL, PERFORMANCE AND RECORDING FACILITY WITH AN EXTERIOR SCREEN ("SOUNDSPACE"), AND AN APPROXIMATELY 320-SPACE (+/-) PUBLIC PARKING GARAGE FACILITY. ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS Concurrent with completion of the first phase of the 17th Street Master Plan study (Master Plan) by Zyscovich, Inc., in October, 2001, the Administration has been in negotiations with the New World Symphony (NWS) regarding its proposed lease of a portion of the 17th Street Surface Parking Lot to accommodate its Soundspace design concept (the Project). As envisioned, the proposed 50,000 square foot facility will provide state-of-the-art communication and media capabilities with a 700-seat (+/-) performance space, classroom/educational, rehearsal and broadcast space. In addition to providing a world- renowned, state-of-the-art facility, another focal point for the community, and the basis for considering the facility's location on this site, is that it will incorporate giant video screen(s) on one or more facades of the building, allowing the public to view live and recorded broadcasts from around the world. The Master Plan contemplates situating the facility on the west surface lot, just to the north of the exiting NWS Theater on Lincoln Road. On March 11, 2003, the NWS announced its hiring of world renowned architect, Frank Gehry of Gehry Partners, to design the Project. Frank Gehry will lead a consulting team that will also include Zyscovich Architects, Nagata Acoustics, Theatre Project Consultants and " ' ,f. Donnell Consultants. On April 21, 2003, at a meeting of the Finance and Citywide Projects Committee, the Administration presented a summary of preliminary terms which continues to provide a basis for negotiations towards a Development and Lease Agreement. At the time, certain key issues were identified which remain to be addressed, including the lay-out and design of the proposed facility; the consideration for the ground lease; the amount of the City's contribution towards the design and construction of the parking structure to partially serve the facility's needs; the timing for the construction of replacement parking that will be displaced by the project (City Hall expansion lot); and the configuration and design of the park contemplated for the east surface lot. Concurrent with the negotiations, the NWS has and continues with its outreach initiative, scheduling meetings with various Citywide committees to advise on the Symphony's expansion plans and to obtain community input. Since January, 2003, the NWS has presented its plans before the Cultural Arts Council, the Lincoln Road Marketing Association, the Convention Center Advisory Board, the Tuesday Morning Breakfast Club, and on two occasions before the Parking and Transportation Committee and the Finance and Citywide Projects Committee. It should be noted that after the second presentation before the Parking and Transportation Committee, the Committee voted to support the Project in concept, subject to the following conditions: . the City commits to replacing all lost/impacted parking; . that construction will be phased to mitigate impact to area businesses and parking; . to enhance linkages to Lincoln Road; . to maintain a concurrency level no lower than "D" ; . to provide handicapped parking access on Lincoln Lane North; and . To bring back concept plans for the facility and adjacent parking areas. While support for the Project is generally widespread, there is also some degree of opposition and/or strong concern particularly from certain office, hotel and retail businesses on Lincoln Road or within close proximity to the 1 ih Street surface lots. The primary concerns involve the loss of parking spaces within an acceptable walking distance from the respective businesses (regardless of the City's commitment to replace and enhance parking spaces displaced by the Project), as well as the potential adverse impact from a concurrency perspective. There is also concern that the City should not be focusing its resources on cultural venues when instead it should be pursuing tourism and visitor-related enhancements. On June 17, 2003, the Administration provided the Finance and Citywide Projects Committee with an updated term sheet, a copy of which is attached to this Memorandum, and reported that the intent was to have a Development Agreement drafted in time for a first reading at the July 30,2003 Commission meeting. Commissioner Smith recommended that the Agreement contain a "drop-dead date" provision, requiring that in the event the Project fails to proceed within a specified time frame from the date the NWS takes possession of the site, the site reverts back to the City. In addition, the NWS should provide evidence annually of its ongoing financial capacity to operate and maintain the Project. Additionally, the Committee asked for the following items: an update concept plan/sketch of the proposed facility and adjacent parking, incorporating the modified parking plan for the east lot with an enhanced pedestrian linkage and greenway between 17th Street and Lincoln Road, further community outreach with the area hotels and Lincoln Road businesses/property owners, and an operating pro-forma for Soundspace. Concurrent actions required to finalize the Development and Lease Agreements include the following: . Subject to an analysis of comparable parking structures, the City must determine its maximum exposure relative to construction costs associated with the NWS' 320- space parking facility. NWS will pay for any incremental costs associated with Garage design and construction, thereby mitigating construction risk. If ground retail space is required, the parties agree to meet and negotiate respective responsibilities. It is anticipated that the City's share will range between $12,000- $15,000 per space. . On the July 2 Commission Agenda, there is a referral item to the Planning Board concerning a proposed amendment to the "CCC" Development Regulations to allow for waiver of Development Regulations for parking so no encumbrance of Garage is required. The legislative intent is that all parking displaced by the Project shall be replaced and required parking will be provided. Consideration for this waiver will be NWS' funding for public parking costs in excess of the City's cap. The dates being considered for the Planning Board meeting are July 29 or Aug 26, 2003. Pursuant to the recommendation of the Planning Board, this item will have to be brought back to the City Commission for approval in the form of two readings, the first of which may be held at the September 10 Commission meeting or the second meeting in October, 2003. . In accordance with the provisions of Ordinance No. 92-2783 (Shapiro Ordinance), the lease of any City-owned property for a period of more than five years, including option years is subject a public hearing process. This Resolution sets the first of two Public Hearings for July 30,2003, to consider a first reading of the Development Agreement. . In order for the NWS' plans to proceed, the City must proceed with the construction of the City Hall expansion garage. To this end, it is anticipated that CIP will place an item on the July 30 Commission Agenda, requesting authorization to proceed with architectural and engineering services to proceed with the programming aspects and design of the parking facility. Subject to these conditions, the Administration recommends setting the Public Hearing to approve the Development Agreement on First Reading on July 30, 2003. JMG/CMC:KOB Attachments T:\AGENDA \2003~uI0203\consent\NWS _Public_ Hearing_ Mem.doc PROPOSED TERM SHEET DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE NEW WORLD SYMPHONY Owner/Landlord: City of Miami Beach DeveloperlT enant: The New World Symphony (NWS) Design Team: Gehry Partners, in collaboration with Zyscovich Architects, Nagata Acoustics, Theatre Project Consultants and Donnell Consultants Developers Corporate Status: 501 (c)(3) Project Description: Approximately 50,000 sq.ft. footprint for "Soundspace", a 700 seat (+/-) educational, performance and recording facility with an exterior screen. Approximately 320-space (+/-) parking garage facility (garage). . Designers will look aggressively at ability to add additional floor of parking in an effort to mitigate any net loss of parking in surface lots. Project Cost/Responsibilities: . Soundspace: Approximately $40-$50 million - NWS . Parking: $TBD million maximum contribution from City of Miami Beach (NWS to design and construct/CMB to own/operate as public municipal garage). Note: A stand alone garage with frontage on street may require that 1st floor frontage is occupied by commercial accessory use i.e. retail, etc. Legal Descriptions: Actual legal description for Soundspace and garage sites to be finalized upon approval of plans and specifications. Ground Lease Term: 55 years from completion; four 1 O-year renewal options. Parking Requirements: City will propose amendment to CCC Development Regulations to allow for waiver of Development Regulations for parking so no encumbrance of Garage is required. (Note: The Legislative intent is that all parking shall be replaced and required parking will be provided.) Note: Consideration for waiver will be NWS' funding for public parking costs in excess of City cap. Parking Garage Cost: City will fund $TBD million (i.e. 320 spaces @ $TBD/Soace) and NWS will pay for any incremental costs associated with Garage construction and design, thereby mitigating construction risk. If ground retail space is required, the parties .\ agree to meet and negotiate respective responsibilities. Construction Sequencing: Commencement: Replacement parking must be built before displacement of west parking lot for construction of garage. The City Hall Expansion Garage must be built and completed prior to NWS' commencement of Garage and Soundspace construction. NWS shall only take possession of the Site once the City obtains a Temporary Certificate of Occupancy (TCO) on the City Hall Expansion Garage. NWS Construction staging for Soundspace will be confined to site and construction workers will park at off site location, thereby not impacting current users in 17th Street Garage or adjacent lots. ConcurrencylTraffic Analysis: Developer will be obligated to perform a traffic analysis and mitigate and meet all concurrency requirements. Art in Public Places (AIPP): As the proposed project constitutes private use on public land, the AIPP 1 %% will apply to NWS project construction cost (per proposed revisions to Ordinance). Public Space in Soundspace: NWS agrees to create a public component to the facility which educates the public on its use and provides the public with a visitor attraction even when the facility is not being utilized or a performance is not programmed. Underground Utilities: Developer will relocate any underground utilities on the site. Construction/Perm itting: Preliminary Plans and Specs: DRB Applications: Building permits: Possession Date: City Hall Expansion Garage TCO Construction Completion: No later than 4 years from Possession Date, not subject to unavoidable delays. Base Rent: $1/year. No security deposit. Real Estate Taxes: In the event Ad Valorem taxes are assessed, NWS will be obligated to pay as to land and building. Parking Operations: City will own and operate garage at City set rates. Bond/Finance Requirements: Subject lots were improved utilizing County/City funding (TECCA; Convention Center and Parking Revenue Bonds). All bond covenants and other requirements must be addressed. Change in Use: If NWS ceases to operate Soundspace for the purposes contemplated under the Development Agreement and Ground Lease, or moves its principal place of business and operation from the City, the facility will automatically revert to City, for public purpose use by the City. Prohibited Uses: NWS shall in no way use the facility for any purpose/use that would impair status/integrity of this and other public funds initially used to improve the lots. Any such change in use will be treated as a default under the Ground Lease. Right of First Refusal: City has the right of first refusal to purchase NWS' interest in the Premises. Environmental Matters: Property is leased "as is" and NWS is responsible for any required environmental remediation on the project site. Sale, Assignment, Transfer & Subletting: Not permitted without prior written approval of City. Performance Rentals: Facility may be rented for performances by other organizations/corporations without prior written consent of City. Bridge Tender House: NWS will staff Bridge Tender House (Art Deco information/ticket booth) to be relocated from Washington Avenue to Lincoln Road. Public Benefits: NWS commits to provide certain public benefits in the form of non-monetary contributions comprised of direct economic benefits, with an estimated value of $780,000, comprised of the following: . Educational contributions - $250,000 . Free public presentations - $280,000 . Programming of the projections screens - $200,000 . Free concert for the City - $50,000 Additional indirect economic impacts, as described below and in the attached proposal from NWS, include job creation, cultural economic benefits and visitor attraction and spending, in lieu of rental payments. These contributions fall into five general areas as follow: . Economic Impact: NWS will invest an estimated $35 million in the construction of Soundspace. The construction phase will generate additional jobs and income for the local community. Upon completion, the Facility will increase NWS' operating budget by close to $2 Million annually, creating over 75 new jobs and approximately $2 million in personal income on a County-wide basis. These figures do not include the impact of audience ancillary spending. The architectural design of the proposed Facility, by world- renowned Architect, Frank Gehry is also expected to serve as a major attraction. . Education: NWS will work with local educational institutions in Miami Beach to establish and/or enhance educational opportunities for students, including music mentoring, in-school performances and instrumental coaching programs. . Community: In addition to providing periodic free public concerts, NWS is also working on a promotional discount program for Miami Beach residents, valued at approximately $4.9 million. Additionally, the City and the Convention Center will have access to Soundspace for an agreed number of events per year. . Culture: Existing and new Miami Beach Arts organizations will have the opportunity to use Soundspace as well as the Lincoln Theater. In addition, NWS will work with the City to offer reduced rental rates at the Lincoln Theaterfor small or emerging arts organizations. . Venue: The NWS proposes to construct a state-of-the-art cultural performance venue by a world renowned architect that will serve as an anchor for the City's established cultural community and tourist industry. The Project is anticipated to benefit the City's economy and enhance the quality of life of its residents. Additionally, upon expiration of the Lease Agreement, ownership of the $35 million facility will revert to the City.