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Resolution 2019-30934 RESOLUTION NO. 2019-30934 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA, FOLLOWING THE ADMINISTRATION'S UPDATE REGARDING THE CURRENT STATUS OF THE LINCOLN ROAD REDEVELOPMENT PROJECT, APPROVING AND AUTHORIZING THE ADMINISTRATION TO RELEASE THE CONSTRUCTION MANAGER TO PROCEED WITH BIDDING THE LINCOLN ROAD REDEVELOPMENT PROJECT BASED UPON A TOTAL PROJECT BUDGET OF $67.6 MILLION (OPTION A) CONTINGENT UPON THE EXPANSION AND EXTENSION OF LINCOLN ROAD BUSINESS IMPROVEMENT DISTRICT (LRBID) WITH THE UNDERSTANDING THAT THE LRBID WILL PROVIDE ADDITIONAL FUNDING FOR CULTURAL PROGRAMMING, PROVIDED, IF THE LRBID IS NOT SUCCESSFUL IN OBTAINING THE APPROVAL OF THE AFFECTED PROPERTY OWNERS TO EXPAND ITS BOUNDARIES AND EXTEND ITS TERM, THEN DIRECTING THE ADMINISTRATION TO REDESIGN THE PROJECT TO REDUCE ITS SCOPE WITHOUT REMOVING THE DREXEL AVENUE IMPROVEMENTS (OPTION B) BASED UPON A TOTAL PROJECT BUDGET OF $54.3 MILLION; AND FURTHER, APPROVING THE RECOMMENDATION OF THE ADMINISTRATION TO EXPLORE THE ESTABLISHMENT OF A LINCOLN ROAD ARTS COMMITTEE UPON THE SUCCESSFUL EXPANSION OF THE LRBID. • WHEREAS, on September 10, 2014, the City Commission adopted Resolution No. 2014-28714 to enter into negotiations with James Corner Field Operations, L.L.C.("JCFO")and on February 9, 2015 they commenced work on the development of the "Lincoln Road District Master Plan, to serve as the basis for future improvements on Lincoln Road, from Lincoln Lane North to Lincoln Lane South,and from West Avenue to Collins Avenue,as well as the connecting side streets for the Lincoln Road Redevelopment Project; and WHEREAS, the.Lincoln Road District Master Plan provides a conceptual land use plan, design guidelines, and illustrative details that incorporate key elements and features, which includes refurbishments and enhancements to lighting, pedestrian surfaces, street furnishings, healthy tree fertilization systems, and crosswalks, along with recommendations for additional operational changes to loading times, the City's sidewalk café ordinance, and trash collection; and WHEREAS, on September 8, 2015, JCFO presented the Lincoln Road District Master Plan to the Historic Preservation Board, where the Board provided favorable comments to the Lincoln Road District Master Plan that were will be incorporated into the final design; and WHEREAS, on October 14, 2015, the City Commission adopted Resolution No. 2015- 29183, adopting the Master Plan for the Lincoln Road District in concept; and WHEREAS, the Lincoln Road District Master Plan design aims to become a catalyst for economic development with inviting spaces that will engage the community, attract residents, visitors, and resonate as a world-class destination; and WHEREAS,on March 9,2016,the City Commission adopted Resolution No.2016-29319, awarding the contract for Architectural and Engineering Design Services for Lincoln Road District to JCFO; and WHEREAS, on June 8, 2016, the City Commission, pursuant to RFQ 2016-073-KB, adopted Resolution 2016-29447 awarding a Construction Manager at Risk ("CMAR") contract for pre-construction services, to Burkhardt Construction, Inc.; and WHEREAS, Burkhardt Construction, Inc.'s responsibilities under RFQ 2016-073-KB include, but are not limited to, design review for constructability, cost estimates, project scheduling, logistics analysis, product submittals and bid preparation, analysis and submittal of a Guaranteed Maximum Price proposal for consideration by the City; and WHEREAS, on October 28, 2016, following the completion of the Schematic Design Phase and value engineering efforts,the projectteam presented the design and estimated costs to the Finance and Citywide Projects Committee,who gave direction to the project team to forgo the value engineering options and design to the Lincoln Road District Master Plan recommendations; and WHEREAS, the project team has projected the total project cost to be approximately $77.4 million for the Lincoln Road District Improvement Project, including improvements for Lincoln Road from Lenox Avenue to Washington Avenue, Lincoln Road from Washington Avenue to Collins Avenue, Meridian Avenue from Lincoln Road to 17th Street, Pennsylvania Avenue from Lincoln Road to Lincoln Lane North, and Drexel Avenue from 16th Street to Lincoln Lane North; and WHEREAS, the total available budget for this project is $50.36M, which includes the Lincoln Road Pedestrian Mall at $40M, Convention Center/Lincoln Road Connectors at $10M, and Infrastructure(Design Only)at$361,000; and WHEREAS, based on projected total project cost of $77.4M and the current available project budget of$50.36M,there is a total project funding gap of$27.04M; and WHEREAS, one way to bridge the funding gap would be to impose a special assessment on the properties that are benefitted by the Project; and WHEREAS, City staff, the design consultant, the construction manager and various Lincoln Road stakeholders have worked together to develop strategies to address the funding gap and have provided two (2) options to address project funding, which include: (1) a scope reduction and augmented budget by identifying additional funding sources ("Option A")at a total estimated cost of $67.6 million; and (2) scope reduction with the inclusion of Drexel Avenue ("Option B")at a total estimated cost of$54.3 million; and WHEREAS, Option A recommends that the City reduce the Project scope by omitting work for the Washington to Collins areas (Lincoln Road 200-300 Blocks) at a cost savings of$5.1 M, as this area may be included in the planned Washington Avenue improvements in the future, and omitting gateway trellis and trellis specialty lighting at Washington entrance at a cost savings of$4.7M; and WHEREAS, in addition to scope reduction, Option A identifies potential additional funding sources, which include: infrastructure funding (storm, water and sewer) in the amount of$7.0M; security barriers funding through the City's General Obligation Bond in the amount of $2.4M; and utilizing Non-TIF RDA funds previously de-appropriated in the amount of $6.86M; and WHEREAS, the resulting Project budget for Option A would be broken down as follows: Washington to Lenox (Lincoln Rd 400-1000 Blocks) Omitting Trellis ($50.1 M), Washington to Collins (Lincoln Road 200-300 Blocks)($0.5M), Lincoln Road Connectors (Meridian, Penn.And Drexel)($10M); and Infrastructure($7.0M),for a total project budget of$67.6M; and WHEREAS, a critical component of Option A is the successful implementation of the LRBID expansion and extension which will generate funding for Arts, Culture and Performance programming, as well as the necessary promotional, marketing and advertising campaigns, and the Administration does not recommend creating a special assessment district in lieu of expanding and extending the LRBID; and WHEREAS, Option B recommends value engineering the project such that it would utilize the allocated funding of$50 million which would involve revising, deferring or eliminating scope elements of the plan such as new pedestrian paving, pedestrian lighting, replacement of underground water lines along Lincoln Road, camera and security infrastructure, landscaping the Washington to Collins portion, fountains and follies, but would include the pedestrianization of Drexel Avenue, from 16th Street to Lincoln Lane North at an additional cost of$4.3M; and WHEREAS, the resulting Project budget for Option B would be broken down as follows: Washington to Lenox(Lincoln Road 400-1000 Blocks)($40.0M); Lincoln Road Connectors (Meridian and Infrastructure)($10.0M); and Lincoln Road Connectors(Drexel)($4.3M),for a total project budget of$54.3M; and WHEREAS, strategic construction phasing is crucial to minimize the impact on the businesses on Lincoln Road, visitors and residents, and accordingly, under Option A construction activities will occur one block at a time, resulting in a duration of approximately 6-9 months per block for a total project duration between 42 and 63 months, and should the project proceed with the further reduced scope, matching the currently available budget with Option B, the construction timeline would be reduced to a duration of 3-4 months per block, for a total project duration between 21 and 28 months; and WHEREAS,the Administration recommends the City proceed with Option A, provided the LRBID is successful in the implementation of its expansion and extension; and WHEREAS, if the LRBID is not successful in obtaining the approval of affected property owners to expand its boundaries and extend its term, then the Administration would recommend Option B; and WHEREAS, the benefits anticipated to be received by the properties under either approach include, but are not limited to, increase in market value at a faster rate, lower insurance cost, and substantial growth in tourist and local visitor attendance; and • WHEREAS, additionally, upon successful expansion of the LRBID, the Administration recommends exploring the establishment of a Lincoln Road Arts Committee, composed of representatives from some of the area's arts and culture institutions. 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 of the City of Miami Beach, Florida approve and authorize the Administration to release the Construction Manager to proceed with bidding the Lincoln Road Redevelopment Project based upon a total project budget of $67.6 million (Option A) contingent upon the expansion and extension of the Lincoln Road Bid (LRBID)with the understanding that the LRBID will provide additional funding for cultural programming, provided, if the LRBID is not successful in obtaining the approval of the affected property owners to expand its boundaries and extend its term, then the Administration shall proceed with the redesign of the project to reduce its scope without removing the Drexel Avenue improvements (Option B)based upon a total project budget of $54.3 million; and further, approve the recommendation of the Administration to explore the establishment of a Lincoln Road Arts Committee upon the successful expansion of the LRBID. PASSED and ADOPTED this 3/ day of JuU , 2019. —a.. ."--,____ Dan Gelber, Mayor ATTEST: JUN 1 ti 2023 Rafael . Grana o, City Clerk APPROVED AS TO -'W......kl6 i, FORM&LANGUAGE . 1;7' , .;"S ',, &FOR EXECUTION 'IR CORPc~HATED;! {) _- 8,-Z3 %,q .,�_ .City Attorneyle,i1g Dote Resolutions - R7 H I H COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 31, 2019 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, FOLLOWING THE ADMINISTRATION'S UPDATE WITH REGARDS TO THE CURRENT STATUS OF THE LINCOLN ROAD REDEVELOPMENT PROJECT AND APPROVING AND AUTHORIZING THE ADMINISTRATION TO PROCEED WITH THE BIDDING AND CONSTRUCTION PHASES OF THE PROJECT, UTILIZING A COMBINATION OF SCOPE REDUCTION AND ADDITIONAL FUNDING OF $16.26 MILLION TO CLOSE THE FUNDING GAP (OPTION A). RECOMMENDATION The Administration recommends that the City Commission approve the resolution. ANALYSIS On February 9, 2015, consultant James Corner Field Operations (JCFO), commenced work on the development of the "Lincoln Road District Master Plan," to serve as the basis for future improvements on Lincoln Road, from Lincoln Lane North to Lincoln Lane South, and from West Avenue to Collins Avenue, as well as the connecting side streets. This master plan is also geared towards developing a vision for its future, boosting its status as a world class public space, and pedestrian destination that embodies the unique style and culture that defines Miami Beach. • The Master Plan provides a conceptual land use plan, design guidelines, and illustrative details that incorporate key elements and features. This includes refurbishments and enhancements to lighting, pedestrian surfaces, street furnishings, healthy tree fertilization systems, and crosswalks. A few recommendations were made by the consultant, including operational changes to loading times, sidewalk café ordinance, and trash collection. City staff has worked extensively with the various Lincoln Road stakeholders, including property owners, retail tenants, restaurant operators, and neighborhood residents. In addition, there were • two public workshops held on June 24 and September 30, 2015. This combined feedback was provided to JCFO for further consideration. On September 8, 2015, the Lincoln Road District Master Plan was presented to the Historic Preservation Board Comments from the Board were favorable and incorporated into the final design. On October 14, 2015, the Mayor and City Commission approved, in concept, the Master Plan for the Lincoln Road District. On March 9, 2016, the City Commission adopted Resolution No.2016-29319, awarding the contract for Architectural and Engineering Design Services for Lincoln Road District to JCFO. The award was based on the Lincoln Road Master Plan approved by the City Commission in October 2015. The resolution accepted the recommendation of the City Manager to retain the top ranking firm pursuant to RFQ No. 2015-245-KB. On June 8, 2016, City Commission, pursuant to RFQ 2016-073-KB, adopted Resolution 2016- 29447 awarding a Construction Manager At Risk (CMAR) contract for pre-construction services, to Burkhardt Construction, Inc. Responsibilities under this contract include, but are not limited to, design review for constructability, cost estimates, project scheduling, logistics analysis, product submittals and bid preparation and analysis. Burkhardt Construction will prepare a Guaranteed Maximum Price proposal for consideration by the City, upon completion of the final bid process. If approved, the CMAR contract will be amended to include Construction Phase Services. On October 28, 2016, following the completion of the Schematic Design Phase and Value Engineering efforts, the project team presented the design and estimated costs to the Finance and Citywide Projects Committee, who gave direction to the project team to forgo the value engineering options and design to the Master Plan recommendations. Since that time, the City, JCFO and Burkhardt Construction have had multiple design meetings with the different departments and the stakeholders. The design has advanced through 90% Construction Documents. Throughout the process, at each design completion milestone, except the 90% construction documents, JCFO and Burkhardt Construction 'prepared independent cost estimates. The overall project cost for the improvements proposed, as prepared by Burkhardt Construction at 50% Construction Document submittal include, without limitation, costs of construction, labor, materials and contractor fee and contingency. City staff has included in the total project cost, the cost of plans, specifications and surveys, architecture and engineering, legal expenses, permit and City fees and Owner's Contingency. The total project cost is projected to be approximately$77.4 million for the Lincoln Road District Improvement Project, including Lincoln Road from Lenox Avenue to Washington Avenue, Lincoln Road from Washington Avenue to Collins Avenue, Meridian Avenue from Lincoln Road to 17th Street, Pennsylvania Avenue from Lincoln Road to Lincoln Lane North, and Drexel Avenue from 16th Street to Lincoln Lane North. a) Physical Improvements The types of improvements being proposed within the Lincoln Road District include enhancement of pedestrian walkways and café zones, modifications to the existing planters and water features, new landscape and irrigation, needed cosmetic repairs to historic Lapidus structures, drainage improvements, new lighting and signalization/wayfinding, performance/multipurpose areas in the 500 and 600 Blocks, outdoor furnishings at selected locations, gateway trellis at the 400 Block, replacement of underground infrastructure, crosswalk enhancements, and milling and resurfacing of asphalt paving. b)Available Budget Total available budget for this project is $50.36M. The total funding for this project was specifically allocated to revitalize the following components within the Lincoln Road District: • Lincoln Road Pedestrian Mall $40 million • Convention Center/Lincoln Road Connectors: $10 million • 17th Street from Pennsylvania to Washington Ave: $2 million This portion of the project was later removed, as it is being performed under a future project to improve 17th Street Infrastructure (Design Only) $361,000 This was funded by a separate Public Works project, outside the Lincoln Road Improvement project budget c)- Lincoln Road District Master Plan Capital Improvement Cost LINCOLN ROAD DISTRICT IMPROVEMENTS TOTAL PROJECT COST Description Estimated Construction and Soft Costs) Amount Washington to Lenox (Lincoln Road 400-1000 Blocks) $56.1 M Washington to Collins (Lincoln Road 200-300 Blocks) $5.6M Lincoln Road Connectors (Meridian, Penn.And $9,1 M Drexel) Infrastructure $6.6M Total Cost: $77.4M Available Budget $50.36M Funding Gap ($27.04M) d) Special Assessment Opportunities O- ne way to bridge the funding gap is to impose a special assessment on the properties receiving a benefit from the Project. There is ample precedent for this approach. Lincoln Road Capital Improvements District(1994) On May 18, 1994, the City Commission adopted Resolution No. 94-21165, creating a special assessment district to be known as the Lincoln Road Capital Improvements District No.1; providing for the levying of special assessments; indicating the location, nature and estimated cost of the improvements to be partially defrayed by the special assessments. The Lincoln Road Task Force, established in order to work with the City of Miami Beach in developing an overall comprehensive plan for the redevelopment and revitalization of Lincoln Road, was composed of Lincoln Road property owners, merchants, the Miami Beach Development Corporation, and the City Manager. Under the authority provided by Chapter 170.01, Florida Statutes, as amended, The City levied and collected a special assessment against those properties benefited by the public improvements. The 1994 assessments defrayed approximately half, or 50%, of the estimated project costs directly related to"Mall enhancements." The agreed upon equitable assessment formula, reached by consensus with the Lincoln Road Task Force, was a blended one. The assessment formula charged, for linear front footage, linear side footage, and a rate per square foot for the space above ground level. City of Coral Gables Streetscape Project(2014) On June 10, 2014, the City of Coral Gables Commission adopted resolution No. 2014-114, the Initial Assessment Resolution for Miracle Mile Improvement Project and No. 2014-115, the Initial Assessment Resolution for Giralda Avenue Improvement Project. The resolutions described the methods of assessing the cost of the design, acquisition, construction and installation of the improvement project against the real property that will be specially benefited thereby, as well as, collection of the assessments and repayment amounts. On October 14, 2014, the City of Coral Gables passed and adopted Resolution No. 2014-223 authorizing the negation of a loan in an amount not to exceed $25,000,000 from the Sunshine State Governmental Financing Commission to finance certain Capital Improvements within the City of Coral Gables. The debt service on the Capital Improvement Revenue Bonds ("Bonds") would be paid in part by the City of Coral Gables (50%) and in part by the special assessments (50%) imposed on the properties receiving special benefit from the Project. • Lincoln Road Business Improvement District(2019) On April 15, 2015, the Mayor and City Commission of the City of Miami Beach adopted Resolution No. 2015-28992, creating a special assessment district to be known as the Lincoln Road Business Improvement District (LRBID). City staff has met with representatives of the LRBID on multiple occasions, throughout the design phase, in order to provide updates and receive feedback. On January 8, 2019, the City Commission hosted a Lincoln Road Workshop to review the design, cost and budget for the project, as well as potential scope reductions. The LRBID, through several Executive Committee and Board of Directors meetings, expressed interest in contributing towards programming for activation of Lincoln Road as opposed to capital funding for the physical improvements. On July 3, 2019, the Board of Directors of the Lincoln Road Business Improvement District adopted Resolution 18-19-11 (Attachment A), in support of the full implementation of Phase I of the Lincoln Road District Master Plan, and further expressing support for the creation of an expanded Business Improvement District. The Lincoln Road Business Improvement District Board of Directors further expresses its desire to (a) expand the term of the LRBID for an additional five years; (ii) increase the area covered by the LRBID to include, at a minimum, • Lincoln Road from Collins Ave. to West Ave. and to include the side streets; and (iii) increase the assessments to current LRBI D members by approximately twenty-five percent(25%)and to consider alternative methods of assessment. These modifications to the term, boundaries, and assessment methodology of the LRBID would generate approximately $16,500,000 of additional revenue over the next ten (10) years, which funds will be used for arts, culture, and performance programs. The Mayor and Commission through resolution would need to review and consider allowing for an "expanded Business Improvement District" and authorize a special election of the affected property owners for the creation of this new Lincoln Road Business Improvement District. e) Potential Project Scope Cost Reduction Strategy And Potential Additional Funding Sources (I) Scope Reduction and Augmented Budget (Option A) In order to further alleviate the financial impact for the construction of the project, City staff, the design consultant,the construction manager and various Lincoln Road stakeholders have. worked together to examine potential scope reductions, thereby reducing project cost. The single item with greatest impact on cost was identified to be the gateway trellis located at the Washington Avenue entrance to Lincoln Road. Additionally, it has been noted that the project could omit the Washington to Collins (Lincoln Road 200-300 Blocks) scope, as this area may be impacted by the planned Washington Avenue improvements in the future, and may be included as part of that project. The Resolution, recently adopted by the LRB I D, would generate additional revenue to be used for Arts, Culture and Performance programming, as well as the necessary promotional, marketing and advertising campaigns. Additionally, in the event that the expansion of the LRBI D is not successful, the LRBI D has suggested that the City could establish a special assessment district. The impact of these scope reductions and the inclusion of additional funding sources is depicted in the chart below: LINCOLN ROAD DISTRICT IMPROVEMENTS PROPOSED BUDGET RECONCILIATION-OPTION A Description Amount Funding Gap ($27.04M) Omit Washington to Collins (Lincoln Road 200-300 $5.1 M Blocks) Omit Gateway Trellis and Trellis Specialty Lighting $4.7M Infrastructure Funding (Storm, Water and Sewer) $7.0M Security Barriers (GO Bond) $2.4M Non-TIF RDA(previously de-appropriated) $6.86M Project Deficit ($0.98M) The Administration could utilize AI PP funding made available by the Convention Center Headquarter Hotel project, to fund an art piece to serve as the gateway feature, replacing the trellis. The Administration further proposes creating a Lincoln Road Arts and Culture Committee which would be tasked with the selection of art pieces to be displayed along Lincoln Road. The resulting project budget for this reduced scope and augmented funding would be broken down as follows: LINCOLN ROAD DISTRICT IMPROVEMENTS: PROJECT:BUDGET -OPTION A Description Amount Washington to Lenox (Lincoln Rd 400-1000 Blocks) $50.1 M Omitting Trellis Washington to Collins (Lincoln Road 200-300 Blocks)* $0.5M Lincoln Road Connectors(Meridian, Penn.And Drexel) $10.0M Infrastructure $7.0M Total Project Budget $67.6M *This item accounts for funding which has already been spent during the design phase of the project. (ii) Scope Reduction with the Inclusion of Drexel Avenue (Option B) Alternatively, the project team has explored the possibility of value engineering the project such that it would utilize the allocated funding of $50 million. This would involve revising, deferring or eliminating scope elements of the plan such as new pedestrian paving, pedestrian lighting, replacement of underground water lines along Lincoln Road, camera and security infrastructure, landscaping the Washington to Collins portion, fountains and follies. Throughout the discussions regarding potential scope reductions, it became evident that the improvements to Drexel Avenue, from 16th Street to Lincoln Lane North, were highly desirable and constituted a necessary improvement. As such, the Administration would recommend that additional funding of approximately $4.3M be provided to complete the pedestrianization of Drexel Avenue at Lincoln Road. The resulting project budget for this option would equate to the currently available budget with an added amount, in order to be able to include the pedestrianization of Drexel and can be broken down as follows: LINCOLN.ROAD DISTRICT IMPROVEMENTS PROJECT BUDGET -OPTION B Description° Amount Washington to Lenox (Lincoln Road 400-1000 Blocks) $40.M Lincoln Road Connectors (Meridian and Infrastructure) $10.0M Lincoln Road Connectors (Drexel) $4.3M Total Project Budget $54.3M f) Construction Phasing and Impact on Businesses Strategic construction phasing is crucial to minimizing the impact on the businesses on Lincoln Road, visitors and residents. As directed by Commission on previous occasions, the project team has proceeded with planning which would limit construction activities to one block at a time, resulting in a duration of approximately 6-9 months per block (Option A), for a total project duration between 42 and 63 months. Should the project proceed with the further reduced scope, matching the currently available budget, the construction timeline would be reduced to a duration of 3-4 months per block (Option B), for a total project duration between 21 and 28 months. CONCLUSION The "Lincoln Road District Master Plan" design aims to become a catalyst for economic development. Inviting spaces that will engage the community, attract residents, visitors, and resonate as a world-class destination. The owners and stakeholders of Lincoln Road recognize this moment as the time to carry out the vision of the "Lincoln Road District Master Plan" to completion. The City of Miami Beach has agreed to contribute $50 million to provide the necessary infrastructure, and a portion of the aesthetic design. This leaves a funding gap of nearly$27 million for the full J CFO design. The potential options are as follows: LINCOLN ROAD DISTRICT IMPROVEMENTS-BUDGET OPTIONS, 'Description : Amount Deficit Original JCFO full scope $77.4M ($27.04M) Reduced Scope with Additional Funding (Option $67.6M ($0.98M) A) Redesigned Scope with Drexel Improvements $54.3M (Option B) ($4.3M) It is the Administration's recommendation that the project proceed with Option A, provided the LRBID is successful in the implementation of its expansion and extension, thereby generating funding for Arts, Culture and Performance programming, as well as the necessary promotional, marketing and advertising campaigns. In the event the LRBI D is not successful in obtaining the approval of the property owners to expand and extend, then the Administration would recommend that the project be re-designed to reduce scope, such as Option B, with the goal of limiting City investment to the funding already allocated, or some lesser cost. The Administration is not comfortable at this point recommending creating a special assessment district in lieu of expanding and extending the LRBI D. Additionally, upon successful expansion of the LRBID, the Administration recommends exploring the establishment of a Lincoln Road Arts Committee, composed of representatives from some of the area's arts and culture institutions. The committee would make recommendations regarding permanent and transient art installations and special performances. The benefits anticipated to be received by the properties under either approach include, but are not limited to, increase in market value at a faster rate, lower insurance cost, and substantial growth in the amount of tourist and local visitors. The improvement of utility services, safety, overall aesthetics, storm water drainage, additional landscape, and urban design are directly correlated with commercial attractiveness that lead to economic growth. The realization of this ambitious, project will create a district with strong civic and social connections to the community through activities, shop, work and play. N Legislative Tracking Office of Capital Improvement Projects Sponsor Mayor Dan Gelber ATTACHMENTS: Description o Attachment 1 • Attachment 1 RESOLUTION 18-19-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF'L'HL+' LINCOLN ROAD BUSINESS IMPROVEMENT DISTRICT, INC., EXPRESSING SUPPORT FOR. THE FULL IMPLEMENTATION OF PHASE I OF THE LINCOLN ROAD DISTRICT MASTER PLAN (THE "PROJECT"), AT A COST OF APPROXIMATELY $77 MILLION; AND FURTHER EXPRESSING SUPPORT FOR THE CREATION OF AN EXPANDED BUSINESS ASSESSMENT DISTRICT TO HELP SUPPORT AND PROMOTE THE FULLY IMPLEMENTED PROJECT. WHEREAS, on April.15, 2015, the Mayor and City Commission of the City of Miami Beach • ("City") adopted Resolution No. 2015-28992, creating a special assessment district to be known as the Lincoln Road Business Improvement District,Inc.,("LRBID"),for aterm of ten(10)years,to stabilize and improve the Lincoln Road retail business district;and WHEREAS,the LRBID is comprised of the owners of seventy-six (76) properties abutting and surrounding Lincoln Road; and • WHEREAS,the LRBID wishes to encourage the development of a vibrant Lincoln Road mixed- use neighborhood,thereby providing a dynamic setting for businesses and area residents alike; and • WHEREAS,in October 2015,the City approved the Lincoln Road District Master Plan("Master Plan") developed by James Corner Field Operations as a guide for future improvements of the Lincoln Road District; and WHEREAS,while the City and Miami-Dade County,through the Miami Beach Redevelopment • Agency,have partially funded the improvements in the Master Plan and are presently determining whether to complete the first phase of the Project in its entirety(at a cost of approximately $77 million,including underground infrastructure improvements)or to delay and modify the project down to a cost of$50 million; and WHEREAS, Lincoln Road-area property owners have made significant contributions to the improvement of the Lincoln Road District, including through the creation.of the LRBID, and wish to continue working with the City to further develop Lincoln Road as a vital arts, culture and performance area. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE LINCOLN ROAD BUSINESS IMPROVEMENT DISTRICT,INC.: Section 1.The Board of Directors of the LRBID hereby expresses support for the City to implement the full Lincoln Road District Master Plan but requests the City to consider substituting the trellis on the 400 block of Lincoln Road for a significant,monumental sculpture of equal value to be acquired, leased, or borrowed to be located on the•same block of Lincoln Road and to be rotated if desired in order to define the entrance to the street. This sculpture or other art work should be selected in cooperation with a curatorial committee composed of art museum directors/curators, and others with an expertise in public art and the 1 Attachment 1 creation of cultural places and designated BID members. The.City should also ensure that the planned spaces for art,culture and performance provide digital infrastructure and'adequate lighting and can support, the weight ofsignificapt,sculptures., Section 2.; In order to protect the.City's significant investment in the Lincoln Road.District and. solidify Lincoln Road's reputation as a significant arts, culture,:arid performance district, the Board of Directors,of the LRBID further expresses its desire to: (i)expand the term of the LRBID for an additional five years;(ii)increase the area covered;by the LRBID to include,at a minimum,Lincoln Road from Collins Ave. to West Ave.and to include additional side streets;and(iii)increase the assessments to current LRBID members by approximately twenty-five percent(25%)and to consider alternative methods of assessment. These modifications to the term,boundaries, and assessment,methodology,of the LRBID would generate approximately$1:6,500,000 of additional revenue over the next ten(10)years,which funds will be used for arts, culture,and performances within the Lincoln Road District,including the promotion thereof Specifically,an expanded LRBID would be able to allocate up to$2,000,000 annually for each of the next 10 years for artistic and cultural programming;as well as the necessary promotional,marketing and advertising campaigns to promote Lincoln Road's arts,culture and performance programming,and its place as the premier, safe, family friendly south Florida destination. Most of those funds will be invested in robust arts and music programming, both directly and through sponsorship programs on Lincoln.Road. Direct programming would include (dance, music, performance), art and sculpture installations (Instagrammable) and activations (seasonal) conducted by the BID, as well as support for holiday programming and lighting. Sponsorships would continue, such as the LRBID's sponsorships of the New World Symphony, South Beach Jazz Fest, Miami Beach Pride and the Colony Theatre. The BIDs commitment is to program all activities at a higher cultural level. Section 3. The expanded LRBID will engage professionals and work with art museum directors/curators, the New World Symphony and others with an expertise in public art, performance and the creation of cultural spaces to develop cultural programming on Lincoln Road. Section 4. The LRBID supports implementing the James Corner Master Plan in the manner set forth in James Corner's memo of April 12,2019 to City Manager Morales. Section 5. The Board of Directors of the LRBID hereby directs'the Executive Director of the LRBID to transmit a;copy of this resolution to the City Manager and the Mayor and City Commission of the City of Miami Beach. Approved and presented by the Board of Directors of the Lincoln Road Business.Improvement District,Inc.,which unanimously approved this Resolu on,by a 10 to vote on this 3rd.day of July of 2019. Stev Gombinski Pre dent Lincoln Road Business Improvement District,.Inc. 2