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Resolution 94-21024 RESOLUTION NO. 94-21024 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CONCEPTUALLY ENDORSING THE CREATION OF A LINCOLN ROAD MANAGEMENT ORGANIZATION; THE NEGOTIATION OF A PHASE II CONTRACT WITH THE ARCHITECTS AND ENGINEERS HERETOFORE RETAINED FOR THE LINCOLN ROAD REVITALIZATION PROJECT; SUPPORTING EARLY ACTION IMPROVEMENTS TO HAVE LINCOLN ROAD READY FOR POW-WOW ' 94; DIRECTING THE ADMINISTRATION TO IMPLEMENT A LINCOLN ROAD TRAM SERVICE TO BE OPERATED BY THE LINCOLN ROAD ASSOCIATION; CONCEPTUALLY ENDORSING THE CREATION OF TWO SPECIAL ASSESSMENT DISTRICTS FOR LINCOLN ROAD, FOR PHYSICAL IMPROVEMENTS AND MANAGEMENT AND MARKETING, RESPECTIVELY; DIRECTING THE CITY ADMINISTRATION, THE CITY ATTORNEY AND THE LINCOLN ROAD TASK FORCE TO TARE ALL • NECESSARY STEPS TO FORM THE AFORESTATED SPECIAL ASSESSMENT DISTRICTS, INCLUDING SETTING THE PUBLIC HEARING ON THE CREATION OF THE ASSESSMENT DISTRICTS FOR MARCH 16, 1994; HIRING BERMELLO/AJAMIL & PARTNERS TO PREPARE ANY AND ALL SURVEYS NECESSARY TO ACCURATELY ASSESS THE PROPERTIES, HIRING AN ECONOMIC CONSULTANT TO DO THE COST BENEFIT ANALYSIS BY EXTENDING ARTHUR ANDERSEN'S EXISTING CONTRACT IN THE REDEVELOPMENT AREA, AND RETAINING BOND COUNSEL TO PREPARE THE ISSUANCE OF BONDS, AS DETERMINED BY THE CITY ATTORNEY; ENDORSING THE MOVIE THEATER RFP FOR LINCOLN ROAD, AS AMENDED BY THE LAND USE AND DEVELOPMENT COMMITTEE AND SPECIAL COMMITTEE OF THE LINCOLN ROAD TASK FORCE; DIRECTING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO ENTER INTO NEGOTIATIONS WITH SUN BANK TO BUILD A 600-700 SPACE PARKING GARAGE ON THEIR LOT AND/OR THE CITY-OWNED LOT LOCATED WEST OF THE PROPOSED MOVIE THEATER SITE ON LENOX AVENUE;... REFERRING ALL CONSIDERATIONS RELATING TO THE MIAMI CITY BALLET, THE MIAMI BEACH HISTORIC MUSEUM, THE "BLACK BOX" THEATRE AND THE PROPOSAL OF MDPL FOR AN INTERPRETIVE AND WELCOME CENTER TO THE FINANCE SUB-COMMITTEE, AND REJECTING ALL OUTSTANDING RESPONSES TO RFP #18-92/93. WHEREAS, the City of Miami Beach has determined that the improvement of Lincoln Road is a high priority; and WHEREAS, a Lincoln Road Task Force has been formed and has met for the last 22 months to determine a course for the future of Lincoln Road; and WHEREAS, the Lincoln Road Task Force has developed a series of recommendations for the improvement of Lincoln Road including the: • creation of a management organization; • proceeding with the design of capital improvements and implementation of short-term capital improvements; • conceptual approval of an assessment district jointly with City funding; • approval of an RFP for theater development; • initiating negotiations with Sun Bank to build a 600 to 700 space parking garage; and WHEREAS, the Mayor and City Commission has received requests from the Miami City Ballet to reserve a site for its future expansion; and WHEREAS, the Mayor and City Commission has also received a request to consider renting 555 17th Street as a future home for the Miami Beach Historic Museum; and WHEREAS, the Mayor and City Commission has determined that the above actions are necessary and critical to the successful revitalization of the City Center area of Miami Beach. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, THAT: 1. The Mayor and City Commission endorse the creation of a Lincoln Road management organization empowered to contract with the City, with a Management Agreement to be approved by the Mayor and City Commission. 2. The Mayor and City Commission endorse the concept of "Phase 2" for physical improvements and directs the City Administration, the Lincoln Road Director, and the City Attorney's Office, to negotiate a Phase 2 contract with the architects and engineers on the project to be approved by the Mayor and City Commission. 3 . The Mayor and City Commission endorse the concept of early action improvements to have Lincoln Road ready for POW WOW '94. 4. The Mayor and City Commission direct the Administration to implement a Lincoln Road Tram to be operated by the Lincoln Road Association. 5. The Mayor and City Commission endorse the concept of the creation of two special assessment districts for Lincoln Road; one that would pay for the physical improvements, including the early action plan reimbursement to the City, and the second assessment district for management and marketing. 6. The Mayor and City Commission direct the City Administration, the City Attorney and the Lincoln Road Task Force to take all necessary steps to form the aforesaid districts including: a) setting the public hearing for the creation of the assessment districts for March 16, 1994 at 4:00 p.m. ; b) hiring Bermello/Ajamil & Partners (from the City's list of engineers) to prepare the survey to accurately assess the properties; c) hiring an economics consultant to do the cost benefit analysis by extending Arthur Andersen's existing contract in the Redevelopment Area; d) retain bond counsel to prepare the issuance of bonds as recommended by the City Attorney. 7. The Mayor and City Commission endorse the Movie Theater RFP for Lincoln Road which has been amended to reflect the recommendations of the Land Use and Development Committee and a special committee of the Lincoln Road Task Force. 8. The Mayor and City Commission direct the Administration and City Attorney to enter into negotiations with Sun Bank to build a 600 to 700 space parking garage on their lot and/or the City-owned lot located west of the proposed movie theater site on Lenox Avenue, with any agreement to be approved by the Mayor and City Commission. 2 9. The Mayor and City Commission refer all considerations relating to the Miami City Ballet, the Miami Beach Historic Museum, the "Black Box" Theatre and the proposal of MDPL for an interpretive and welcome center to the Finance Sub- committee. 10. All outstanding responses to Request for Proposal #18-92/93 are hereby rejected. PASSED AND ADOPTED this 19th day f January , 1994. YOR ATTEST: E CITY CLERK FORM APPROVED RMC:j ph LEGAL DEPT. BY J D Date ' 2 J- 3 • 1:11: • CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. - TO: Mayor Seymour Gelber and DATE: January 19, 1994 Members of the City Commission FROM: Roger M. Carl City Manager SUBJECT: PUBLIC HEARING TO CONSIDER THE PHASING AND DIRECTION OF THE LINCOLN ROAD REVITALIZATION PROGRAM, THE MOVIE THEATER REQUEST FOR PROPOSALS (RFP) , THE REQUEST OF THE MIAMI CITY BALLET TO DESIGNATE A SITE FOR ITS FUTURE DEVELOPMENT, AND A PROPOSAL TO CREATE THE MIAMI BEACH HISTORIC MUSEUM AND LOCATE IT IN THE BUILDING AT 555 17TH ' STREET. ADMINISTRATION RECOMMENDATION: 1. ORGANIZATION The City Commission should endorse the creation of a Lincoln Road management organization empowered to contract with the City. The Lincoln Road effort has been nurtured under the guidance of the Miami Beach Development Corporation. That guidance and staff support has allowed the organization time to consider various options for its future. At the Lincoln Road Task Force planning workshop of December 19, 1993 , a consensus was developed on the structure of the organization t:b be a not- for-profit independent entity with a memorandum of agreement with the City to provide management services for the district at the direction of and with participation of business and property owners and other stakeholder groups. The attached • Exhibit A, on page three, indicates the proposed composition of the board of directors and a transition strategy. Miami Beach Development Corporation would continue involvement in the structure per this outline. 2 . PHYSICAL IMPROVEMENTS A. The City Commission should endorse the concept of Phase 2 for physical improvements and direct the City Administration and the Lincoln Road Director to negotiate a Phase 2 contract with •the architects and engineers on the project. The Phase 1 work effort has been concluded and the concept drawings have been endorsed by the Lincoln Road community and the City Commission. It is time now to finalize this effort into working drawings that can be costed out and eventually bid. For continuity sake, the existing design team will be retained. This continuity was provided for in the original RFP. 44 -1- AGENDA D-3_I ITEM (� DATE J - l I - cJL • B. The City Commission should endorse the concept of early action improvements to have Lincoln Road ready for POW WOW ' 94. Part of the success of the project will depend on the continuing momentum that is visible to the public. Because the project drawings for Phase 2 will take approximately 6 to 9 months as will the formation of the assessment district, the consultant team and the Lincoln Road Task Force have recommended an early action plan that would provide visible signs of improvement and progress and would not be lost with the final plans . These improvements would be components of the final product but are severable and can be placed early. In addition to the improvements, funding would be set aside with this action to provide for the implementation and initial operation of a tram service and a continuing operations budget for the organization until the assessment district is finalized. The total cost of this recommendation shall not. exceed $1 million (see Exhibit A, page two) and tram budget and would be funded from tax increment funds and an existing Community Development Block Grant allocation of $175, 000 and would be credited towards the City' s overall contribution of 500 of the cost of the physical improvements (less the $175, 000) . These funds would not be released until the final public hearing on the assessment district (see below) . anticipated in 45 days . C. The .City Commission should direct the Administration to implement a Lincoln Road Tram to be run by the Lincoln Road Association. The Lincoln Road Task Force has achieved a consensus on an electric tram vehicle for the mall . This component needs to be started immediately in order to keep the momentum going. The cost of this will be approximately $180, 000 (see Exhibit B) the first year for operating and acquisition costs to be funded• as noted in B. above. 3 . FINANCIAL • A. The City Commission should endorse the concept of two assessment districts for Lincoln Road; one that would pay for the physical improvements including the early action plan reimbursement to the City and the second assessment district for management and marketing. B. The City Commission should direct the City Administration, the City Attorney and the Lincoln Road • Task Force to take all the necessary steps to form those districts including: 1) setting the public hearing on the assessment district in 45 days; 2) hiring Bermello/Ajamil & Partners (from the City' s list of engineers) to prepare the survey necessary under the law to accurately assess the properties; 3) hiring the economics consultant to -do the cost benefit analysis by extending Arthur Andersen's existing contract in the redevelopment area; 4) retain bond counsel to prepare the • issuance of bonds as recommended by the City Attorney. 4 . THEATER REQUEST FOR PROPOSALS The City Commission should endorse the attached Movie Theater RFP for Lincoln Road which has been amended to reflect the recommendations of the Land Use and Development Committee and a special committee of the Lincoln Road Task Force. (attached as Exhibit C) . -2- 45 The concept of a movie theater is perceived by the consultants and the Task Force as a vital component of the Lincoln Road- revitalization process . Extensive discussion has occurred on this issue. This current draft of the RFP addresses various concerns raised during these discussions as well as the recommendations of the Land Use and Development Committee and the Lincoln Road Task Force, as follows : * The size of the movie theater complex may not exceed 10 screens or 2, 000 seats. * The height of the facility should not exceed 34 feet, which would allow for a ground level parking height clearance of 8-10 feet and a height of 24-26 feet for the movie theaters . There are no setback requirements on the site with the exception of the north side which has a 10 foot setback. * There is no longer a provision for air rights over Michigan Avenue to connect the two sites. There is however an allowance for air rights over the alley in order to enable primary access to the movie theater from Lincoln Road. * The provision of "Black Box" theater space is not being mandated in the RFP. Instead, it is being encouraged as a "highly desirable" option. The criteria for a "Black Box" component, developed through meetings with individuals involved in performing arts and theater design, is presented in Appendix D of the RFP. Furthermore, any space dedicated for this purpose will not have to take away from the space required to accommodate up to 10 screens for first-run movies . * All language pertaining to the City of Miami Beach financing and building the movie theater has been eliminated from the RFP. As such, proposals no longer • have to respond in a two option format. * Proposals must address the provision of parking for theater patrons and contiguous area retailers along Lincoln Road, during construction and once the theater is operational. * Proposals must also include a plan for providing in-house or contracted security services to ensure public safety. * In the City resolution approving the RFP, the City of Miami Beach will commit to building a 600 - 700 space parking garage on the City-owned lot and/or the Sun Bank property located west of the site. In addition, the City will commit to refurbishing the 5-story garage on 17th Street . * The citizen-based selection committee will be comprised of knowledgeable individuals with no conflicts of interest . The Lincoln Road Task Force would recommend the committee,members. The committee members will be charged with reviewing the RFP' s, prioritizing the responses and making their recommendations to the City Manager, who in turn would make recommendations to the City Commission. 5 . BALLET/HISTORICAL MUSEUM The City Commission should endorse the designation of the site on the easterly side of the newly reconfigured Convention Center Drive northerly of 17th Street as the site for, the Miami City Ballet. Additionally, the City Commission should designate the existing City Building at 555 17th Street as the future home for the Miami Beach Historic Museum. A decision -3- 46 should be reached or a process set in motion to determine the level of City financial support and the source for these projects. BACKGROUND After 22 months of consensus building, the Lincoln Road project has reached the decision making stage on organizational structures and financing. More has been accomplished in the last 22 months than has been possible in the previous 22 years . With the strong commitment of the City Commission to energize this project, the funding of the Lincoln Road Director and her extensive background in putting this type of project together and the strong commitment of the Lincoln •Road community, with the help of Miami Beach Development Corporation, the project has been given new life. The public hearing today will set the stage for the implementation of this precedent-setting program. There are several elements that need to be acted upon individually today but all are related. The recommendations as outlined above have been carefully formulated to put Phase 2 into action. These issues have been discussed at length by the Lincoln Road Task Force and, as much as possible, consensus has been built. Where consensus is not total, it is as close as can realistically be expected considering the diversity and vitality of the Road. On December 19, 1993, a special planning workshop was held by the Lincoln Road Task Force, which broke into three groups to discuss: (1) moving from master plan to design implementation, (2) management and organization, and (3) commercial future of Lincoln Road. The decisions of the group (attached as Exhibit A) are the basis for the recommendations in this memorandum. ANALYSIS The physical improvements will be dramatic evidence of the City' s and the Task Force' s commitment . The Lincoln Road Task Force has, with the consultants, prepared the budget of approximately $12 million to implement the improvements (attached as Exhibit D) . On the basis of this document and in consideration of fairness because the City does own significant amounts of property in the affected area, the City should share in the costs of the project . The Administration has recommended that 50% of the total cost of the project for the physical improvement be paid by the City through tax increment and other sources and 50% be borne by the property owners in the affected area. The leadership of the Task Force is not prepared to concur with this (see Exhibit E, letter from Stanley Levine and Mel Schlesser) , therefore, the City' s specific commitment should not be finalized at the this time. In no case should it exceed 50% of the total project costs, including those costs already advanced. The Task Force has developed three different assessment option scenarios for funding the improvements. Those three are delineated in Exhibit A, page 4 . In order to legally prepare for the assessment district, the City must set a public hearing and hire four consultants: 1. An independent consultant engineer to prepare a survey of the proposed district with accurate information on the properties. 2 . A consultant to do a cost benefit analysis to help accurately assess the benefits of the specific assessments . 3 . Bond counsel to assist with the sale of future bonds to implement the improvements. The physical improvements would be done in two stages: • An early action plan which would, prior to the POW WOW, show physical signs of improvement. • The balance would be done with the preparation of the working drawings . -4- a"7 4 . Retention of the current architectural and engineering team to develop the working drawings for the physical improvements and to perform construction management/quality control activities during project construction. The design fee would be approved by the City Commission after negotiations by the Administration and the Lincoln Road Task Force. The project costs are estimated to be $12 million. The design fee will be approximately $700, 000 . Unlike other assessment districts, where the property owners are paying for only sidewalk area improvements, this project is an entire road of 100 feet in width. The City' s potential share of up to $6 million is eligible for tax increment, CDBG and other sources as available. The City will continue to pursue grants and other sources to enhance our funding capabilities . The City Center/Historic Convention Village Redevelopment and Revitalization plan, on page 21, has delineated the City' s share as a line item, as 50% of the project cost up to $6 million. There is a firm acknowledgement and commitment among Lincoln Road constituents to support an equitable funding formula for the success of this project . The costs to the property owners are being developed by the consultants . The key to the success of the project is the commitment to establish the management/marketing process to support the physical improvements . Without this support, the capital improvements will not achieve their full potential . THEATER RFP The Theater RFP has been discussed at meetings of the Task Force and at the City' s Land Use and Development Committee. The draft before the Commission today reflects the most current comments of the City Commission. It limits the overall size of the theater opportunity to 6 to 10 screens with up to 2, 000 seats, while allowing some site location flexibility. The RFP also moves away from mandating the black box theater requirement and the entrance to the theater from Lincoln Road and defines these goals "highly desirable. " The City will provide the land and develop a parking garage to the west. There is no commitment to finance the project. BALLET/HISTORICAL MUSEUM Although not proposed to be on Lincoln Road, the future of the Miami City Ballet is an integral part of the overall district . The City parcel currently used for parking westerly of TOPA is an ideal site. The ballet envisions a 60, 000 square foot building on the site which will be presented with drawings at the public hearing. The Historical Museum is proposed to reuse and revitalize ,the existing City municipal building at 555 17th Street . While longer term than some of the other projects, it is important to review the options for the museum at this time and set a direction. ECONOMIC IMPACTS • The actions requested will have significant economic implications . The City is requested to commit approximately $6 million toward physical improvements which the owners will match. The resultant • improvements will significantly enhance the value and desirability of Lincoln Road as a unique business location. The positive implications for the resort tax and tax increment revenues are anticipated to exceed this investment in very short order. The project will also reimburse the City for approximately $225, 000 which the City budgeted for fiscal years 92 through 94 as funding for the initial planning process. -5- d8 CONCLUSION The City Commission should approve the actions outlined in this memorandum in order to begin the process of implementing the recommendations of this extraordinary collaborative process. RMC:j ph Attachments • • • 49 -6- • RESOLUTION NO. 94-21024 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CONCEPTUALLY ENDORSING THE CREATION OF A LINCOLN ROAD MANAGEMENT ORGANIZATION; THE NEGOTIATION OF A PHASE II CONTRACT WITH THE ARCHITECTS AND ENGINEERS HERETOFORE RETAINED FOR THE LINCOLN ROAD REVITALIZATION PROJECT; SUPPORTING EARLY ACTION IMPROVEMENTS TO HAVE LINCOLN ROAD READY FOR POW-WOW '94; DIRECTING THE ADMINISTRATION TO IMPLEMENT A LINCOLN ROAD TRAM SERVICE TO BE OPERATED BY THE LINCOLN ROAD ASSOCIATION; CONCEPTUALLY ENDORSING THE CREATION OF TWO SPECIAL ASSESSMENT DISTRICTS FOR LINCOLN ROAD, FOR PHYSICAL IMPROVEMENTS r AND MANAGEMENT AND MARKETING, RESPECTIVELY; DIRECTING THE CITY ADMINISTRATION, THE CITY - j ATTORNEY AND THE LINCOLN ROAD TASK FORCE TO TAKE ALL NECESSARY STEPS TO FORM THE AFORESTATED SPECIAL ASSESSMENT DISTRICTS, INCLUDING SETTING THE PUBLIC 'HEARING ON THE CREATION OF THE ASSESSMENT DISTRICTS FOR MARCH 16, 1994; HIRING BERMELLO/AJAMIL & PARTNERS TO PREPARE ANY AND ALL SURVEYS NECESSARY TO ACCURATELY ASSESS THE PROPERTIES, HIRING AN ECONOMIC CONSULTANT TO DO THE COST BENEFIT ANALYSIS BY EXTENDING ARTHUR ANDERSEN'S ' EXISTING CONTRACT IN THE REDEVELOPMENT AREA, AND RETAINING BOND COUNSEL TO PREPARE THE ISSUANCE OF BONDS, AS DETERMINED BY THE CITY ATTORNEY; ENDORSING THE MOVIE THEATER RFP FOR LINCOLN ROAD, AS AMENDED BY THE LAND USE AND DEVELOPMENT COMMITTEE AND SPECIAL COMMITTEE OF THE LINCOLN ROAD TASK FORCE; DIRECTING THE ADMINISTRATION AND CITY ATTORNEY'S OFFICE TO ENTER INTO NEGOTIATIONS WITH SUN BANK TO BUILD A 600-700 SPACE PARKING GARAGE ON THEIR LOT AND/OR THE CITY-OWNED LOT LOCATED WEST OF THE PROPOSED MOVIE THEATER SITE ON LENOX AVENUE; REFERRING ALL CONSIDERATIONS RELATING TO THE MIAMI CITY BALLET, THE MIAMI BEACH HISTORIC MUSEUM, THE ',BLACK BOX.' THEATRE AND THE PROPOSAL OF MDPL FOR AN INTERPRETIVE AND WELCOME CENTER TO THE FINANCE SUB-COMMITTEE, AND REJECTING ALL OUTSTANDING RESPONSES TO RFP #18-92/93. WHEREAS, the City of Miami Beach has determined that the improvement of Lincoln Road is a high priority; and WHEREAS, a Lincoln Road Task Force has been formed and has met for the last 22 months to determine a course for the future of Lincoln Road; and WHEREAS, the Lincoln Road Task Force has developed a series of recommendations for the improvement of Lincoln Road including the: • creation of a management organization; • proceeding with the design of capital improvements and implementation of short-term capital improvements; • conceptual approval of an assessment district jointly with City funding; • approval of an RFP for theater development; • initiating negotiations with Sun Bank to build a 600 to 700 space parking garage; and WHEREAS, the Mayor and City Commission has received requests from the Miami City Ballet to reserve a site for its future expansion; and WHEREAS, the Mayor and City Commission has also received a request to consider renting 555 17th Street as a future home for the Miami Beach Historic Museum; and WHEREAS, the Mayor and City Commission has determined that the above actions are necessary and critical to the successful revitalization of the City Center area of Miami Beach. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, THAT: 1. The Mayor and City Commission endorse the creation of a Lincoln Road management organization empowered to contract with the City, with a Management Agreement to be approved by the Mayor and City Commission. 2. The Mayor and City Commission endorse the concept of "Phase 2" for physical improvements and directs the City Administration, the Lincoln Road Director, and the City Attorney's Office, to negotiate a Phase 2 contract with the architects and engineers on the project to be approved by the Mayor and City Commission. 3. The Mayor and City Commission endorse the concept of early action improvements to have Lincoln Road ready for POW WOW '94. 4. The Mayor and City Commission direct the Administration to implement a Lincoln Road Tram to be operated by the Lincoln Road Association. 5. The Mayor and City Commission endorse the concept of the creation of two special assessment districts for Lincoln Road; one that would pay for the physical improvements, including the early action plan reimbursement to the City, and the second assessment district for management and marketing. 6. The Mayor and City Commission direct the City Administration, the City Attorney and the Lincoln Road Task Force to take all necessary steps to form the aforesaid districts including: a) setting the public hearing for the creation of the assessment districts for March 16, 1994 at 4: 00 p.m. ; b) hiring Bermello/Ajamil & Partners (from the City's list of engineers) to prepare the survey to accurately assess the properties; c) hiring an economics consultant to do the cost benefit analysis by extending Arthur Andersen's existing contract in the Redevelopment Area; d) retain bond counsel to prepare the issuance of bonds as recommended by the City Attorney. 7. The Mayor and City Commission endorse the Movie Theater RFP for Lincoln Road which has been amended to reflect the recommendations of the Land Use and Development Committee and a special committee of the Lincoln Road Task Force. 8. The Mayor and City Commission direct the Administration and City Attorney to enter into negotiations with Sun Bank to build a 600 to 700 space parking garage on their lot and/or the City-owned lot located west of the proposed movie theater site on Lenox Avenue, with any agreement to be approved by the Mayor and City Commission. 2 9. The Mayor and City Commission refer all considerations relating to the Miami City Ballet, the Miami Beach Historic Museum, the "Black Box" Theatre and the proposal of MDPL for an interpretive and welcome center to then Finance Sub- committee. 10. All outstanding responses to Request for Proposal #18-92/93 are hereby rejected. PASSED AND ADOPTED this 19th day f January , 1994. YOR ATTEST: CITY CLERK FORM APPROVED RMC:jph LEGAL DEPT, BY J -79 Date i ' 2 I" 3 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. --45- TO: Mayor Seymour Gelber and . DATE: January 19, 1994 Members of the City Commission FROM: Roger M. Carl City Manager SUBJECT: PUBLIC HEARING TO CONSIDER THE PHASING AND DIRECTION OF THE LINCOLN ROAD REVITALIZATION PROGRAM, THE MOVIE THEATER REQUEST FOR PROPOSALS (RFP) , THE REQUEST OF THE MIAMI CITY BALLET TO DESIGNATE A SITE FOR ITS FUTURE DEVELOPMENT, AND A PROPOSAL TO CREATE THE MIAMI BEACH HISTORIC MUSEUM AND LOCATE IT IN THE BUILDING AT 555 17TH STREET. ADMINISTRATION RECOMMENDATION: 1 . ORGANIZATION The City Commission should endorse the creation of a Lincoln Road management organization empowered to contract with the City. The Lincoln Road effort has been nurtured under the guidance of the Miami Beach Development Corporation. That guidance and staff support has allowed the organization time to consider various options for its future. At the Lincoln. Road Task Force planning workshop of December 19, 1993 , a consensus was developed on the structure of the organization to be a not- for-profit independent entity with a memorandum of agreement with the City to provide management services for the district at the direction of and with participation of business and property owners and other stakeholder groups. The attached • Exhibit A, on page three, indicates the proposed composition of the board of directors and a transition strategy. Miami Beach Development Corporation would continue involvement in the structure per this outline. 2 . PHYSICAL IMPROVEMENTS A. The City Commission should endorse the concept of Phase 2 for physical improvements and direct the City Administration and the Lincoln Road Director to negotiate a Phase 2 contract with .the architects and engineers on the project. The Phase 1 work effort has been concluded and the concept drawings have been endorsed by the Lincoln Road community and the City Commission. It is time now to finalize this effort into working drawings that can be costed out and eventually bid. For continuity sake, the existing design team will be retained. This continuity was provided for in the original RFP. 44 -1- AGENDA R_3 ITEM e� DATE I _ 1 I - 1172 • • B. The City Commission should endorse the concept of early action improvements to have Lincoln Road ready for POW WOW '94. Part of the success of the project will depend on the continuing momentum that is visible to the public. Because the project drawings for Phase 2 will take approximately 6 to 9 months as will the formation of the assessment district, the consultant team and the Lincoln Road Task Force have recommended an early action plan that would provide visible signs of improvement and progress and would not be lost with the final plans. These improvements would be components of the final product but are severable and can be placed early. In addition to the improvements, funding would be set aside with this action to provide for the implementation and initial operation of a tram service and a continuing operations budget for the organization until the assessment district is finalized. The total cost of this recommendation shall not' exceed $1 million (see Exhibit A, page two) and tram budget and would be funded from tax increment funds and an existing Community Development Block Grant allocation of $175, 000 and would be credited towards the City' s overall contribution of 500 of the cost of the physical improvements (less the $175, 000) . These funds would not be released until the final public hearing on the assessment. district (see below) anticipated in 45 days . C. The City Commission should direct the Administration to implement a Lincoln Road Tram to be run by the Lincoln Road Association. The Lincoln Road Task Force has achieved a consensus on an electric tram vehicle for the mall . This component needs to be started immediately in order to keep the momentum going. The cost of this will be approximately $180, 000 (see Exhibit B) the first year for operating and acquisition costs to be funded as noted in B. above. 3 . FINANCIAL A. The City Commission should endorse the concept of two assessment districts for Lincoln Road; one that would pay for the physical improvements including the early action plan reimbursement to the City and the second assessment district for management and marketing. B. The City Commission should direct the City Administration, the City Attorney and the Lincoln Road Task Force to take all the necessary steps to form those districts including: 1) setting the public hearing on the assessment district in 45 days; 2) hiring Bermello/Ajamil & Partners (from the City' s list of engineers) to prepare the survey necessary under the law to accurately assess the properties; 3) hiring the . economics consultant to .do the cost benefit analysis by extending Arthur Andersen's existing contract in the redevelopment area; 4) retain bond counsel to prepare the issuance of bonds as recommended by the City Attorney. 4 . THEATER REQUEST FOR PROPOSALS The City Commission should endorse the attached Movie Theater RFP for Lincoln Road which has been amended to reflect the recommendations of the Land Use and Development Committee and a special committee of the Lincoln Road Task Force. (attached as Exhibit C) . -2- 45 • • The concept of a movie theater is perceived by the consultants and the Task Force as a vital component of the Lincoln Road- revitalization process. Extensive discussion has occurred on this issue. This current draft of the RFP addresses various concerns raised during these discussions as well as the recommendations of the Land Use and Development Committee and the Lincoln Road Task Force, as follows : * The size of the movie theater complex may not exceed 10 screens or 2, 000 seats . * The height of the facility should not exceed 34 feet, which would allow for a ground level parking height clearance of 8-10 feet and a height of 24-26 feet for the movie theaters . There are no setback requirements on the site with the exception of the north side which has a 10 foot setback. * There is no longer a provision for air rights over Michigan Avenue to connect the two sites . There is however an allowance for air rights over the alley in order to enable primary access to the movie theater from Lincoln Road. * The provision of "Black Box" theater space is not being mandated in the RFP. Instead, it is being encouraged as a "highly desirable" option. The criteria for a "Black Box" component, developed through meetings with individuals involved in performing arts and theater design, is presented in Appendix D of the RFP. Furthermore, any space dedicated for this purpose will not have to take away from the space required to accommodate up to 10 screens for first-run movies . • * All language pertaining to the City of Miami Beach financing and building the movie theater has been eliminated from the RFP. As such, proposals no longer • have to respond in a two option format. * Proposals must address the provision of parking for theater patrons and contiguous area retailers along Lincoln Road, during construction and once the theater is operational . * , Proposals must also include a plan for providing in-house or contracted security services to ensure public safety. * In the City resolution approving the RFP, the City of Miami Beach will commit to building a 600 - 700 space parking garage on the City-owned lot and/or the Sun Bank property located west of the site. In addition, the City will commit to refurbishing the 5-story garage on 17th Street . * The citizen-based selection committee will be comprised of knowledgeable individuals with no conflicts of interest. The Lincoln Road Task Force would recommend the committee members. The committee members will be charged with reviewing the RFP' s, prioritizing the responses and making their recommendations to the City Manager, who in turn would make recommendations to the City Commission. 5 . BALLET/HISTORICAL MUSEUM The City Commission should endorse the designation of the site on the easterly side of the newly reconfigured Convention Center Drive northerly of 17th Street as the site for the Miami City Ballet. Additionally, the City Commission should designate the existing City Building at 555 17th Street as the future home for the Miami Beach Historic Museum. A decision -3- 46 should be reached or a process set in motion to determine the level of City financial support and the source for these projects. BACKGROUND After 22 months of consensus building, the Lincoln Road project has reached the decision making stage on organizational structures and financing. More has been accomplished in the last 22 months than has been possible in the previous 22 years . With the strong commitment of the City Commission to energize this project, the funding of the Lincoln Road Director and her extensive background in putting this type of project together and the strong commitment of the Lincoln •Road community, with the help of Miami Beach Development Corporation, the project has been given new life . The public hearing today will set the stage for the implementation of this precedent-setting program. There are several elements that need to be acted upon individually today but all are related. The recommendations as outlined above have been carefully formulated to put Phase 2 into action. These issues have been discussed at length by the Lincoln Road Task Force and, as much as possible, consensus has been built. Where consensus is not total, it is as close as can realistically be expected considering the diversity and vitality of the Road. On December 19, 1993 , a special planning workshop was held by the Lincoln Road Task Force, which broke into three groups to discuss : (1) moving from master plan to design implementation, (2) management and organization, and (3) commercial future of Lincoln Road. The decisions of the group (attached as Exhibit A) are the basis for the recommendations in this memorandum. ANALYSIS The physical improvements will be dramatic evidence of the City' s and the Task Force ' s commitment. The Lincoln Road Task Force has, with the consultants, prepared the budget of approximately $12 million to implement the improvements (attached as Exhibit D) . On the basis of this document and in consideration of fairness because the City does own significant amounts of property in the affected area, the City should share in the costs of the project . The Administration has recommended that 50% of the total cost of the project for the physical improvement be paid by the City through tax increment and other sources and 50% be borne by the property owners in the affected area. The leadership of the Task Force is not prepared to concur with this (see Exhibit E, letter from Stanley Levine and Mel Schlesser) , therefore, the City' s specific commitment should not be finalized at the this time. In no case should it exceed 50% of the total project costs, including those costs already advanced. The Task Force has developed three different assessment option scenarios for funding the improvements . Those three are delineated in Exhibit A, page 4 . In order to legally prepare for the assessment district, the City must set a public hearing and hire four consultants : 1 . An independent consultant engineer to prepare a survey of the proposed district with accurate information on the properties . 2 . A consultant to do a cost benefit analysis to help accurately assess the benefits of the specific assessments. 3 . Bond counsel to assist with the sale of future bonds to implement the improvements. The physical improvements would be done in two stages : • An early action plan which would, prior to the POW WOW, show physical signs of improvement. • The balance would be done with the preparation of the working drawings. -4- a,7 4 . Retention of the current architectural and engineering team to develop the working drawings for the physical improvements and to perform construction management/quality control activities during project construction. The design fee would be approved by the City Commission after negotiations by the Administration and the Lincoln Road Task Force. The project costs are estimated to be $12 million. The design fee will be approximately $700, 000 . Unlike other assessment districts, where the property owners are paying for• only sidewalk area improvements, this project is an entire road of 100 feet in width. The City' s potential share of up to $6 million is eligible for tax increment, CDBG and other sources as available. The City will continue to pursue grants and other sources to enhance our funding capabilities . The City Center/Historic Convention Village Redevelopment and Revitalization plan, on page 21, has delineated the City' s share as a line item, as 50% of the project cost up to $6 million. There is a firm acknowledgement and commitment among Lincoln Road constituents to support an equitable funding formula for the success of this project. The costs to the property owners are being developed by the consultants. The key to the success of the project is the commitment to establish the management/marketing process to support the physical improvements . Without this support, the capital improvements will not achieve their full potential . THEATER RFP The Theater RFP has been discussed at meetings of the Task Force and at the City' s Land Use and Development Committee. The draft before the Commission today reflects the most current comments of the City Commission. It limits the overall size of the theater opportunity to 6 to 10 screens with up to 2, 000 seats, while allowing some site location flexibility. The RFP also moves away from mandating the black box theater requirement and the entrance to the theater from Lincoln Road and defines these goals "highly desirable. " The City will provide the land and develop a parking garage to the west . There is no commitment to finance the project. BALLET/HISTORICAL MUSEUM Although not proposed to be on Lincoln Road, the future of the Miami City Ballet is an integral part of the overall district. The City parcel currently used for parking westerly of TOPA is an ideal • site. The ballet envisions a 60, 000 square foot building on the site which will be presented with drawings at the public hearing. The Historical Museum is proposed to reuse and revitalize the existing City municipal building at 555 17th Street. While longer term than some of the other projects, it is important to review the options for the museum at this time and set a direction. ECONOMIC IMPACTS The actions requested will have significant economic implications. The City is requested to commit approximately $6 million toward physical improvements which the owners will match. The resultant improvements will significantly enhance the value and desirability of Lincoln Road as a unique business location. The positive implications for the resort tax and tax increment revenues are anticipated to exceed this investment in very short order. The project will also reimburse the City for approximately $225, 000 which the City budgeted for fiscal years 92 through 94 as funding for the initial planning process. -5- a8 CONCLUSION The City Commission should approve the actions outlined in this memorandum in order to begin the process of implementing the recommendations of this extraordinary collaborative process. RMC:jph Attachments 49 -6-