99-23228 RESO
RESOLUTION NO. 99-23228
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING
$220,000 FROM THE MIAMI BEACH CULTURAL ARTS COUNCIL
BUDGET TO PROVIDE MATCHING FUNDS IN THE FORM OF A
NON-INTEREST BEARING LOAN TO FUND A PORTION OF THE
COLONY THEATER IMPROVEMENTS ESTIMATED TO COST
$1,500,000 AND FURTHER AUTHORIZING THAT THE CITY
DIRECT ITS 70% REVENUE RECAPTURE FROM THE COLONY
THEATER CAFE TO BE UTILIZED TO REPAY THE CULTURAL
ARTS COUNCIL.
WHEREAS, the Colony Theater is a historic theater that has received a $720,000 grant from
Miami-Dade County's Cultural Art Council's, Existing Facilities Grants to rehab and renovate the
theater; and
WHEREAS, the Architects contracted have estimated that the total cost to renovate the
theater is $1.5 million and the proposed renovations will modernize the building, expand the
backstage area and bring the theater into full compliance with all ADA requirements; and
WHEREAS, the City intends to submit an application to the State's Cultural Arts Facilities
Grants program in August 1999 and the maximum funding allocation provided through this grant
program is $500,000 per facility and is based on 2: 1 match; and
WHEREAS, in order to achieve maximum funding eligibility, the City/Colony Theater
would have to evidence $1,000,000 in available matching funds, and the City has only identified
$780,000 in funds to implement a portion of the $1,500,000 in estimated improvements; and
WHEREAS, on May 27, 1999, City staff presented a request to the Miami Beach Cultural
Arts Council (CAC) to approve and allocate funding in the amount of $220,000 to complete the
Colony Theater Capital Improvement Project and the CAC Board resolved to have the CAC
Executive Director work with City staffto provide such funds, subject to future reimbursement, to
maximize the City's leveraging capacity for the Colony Theater; and
WHEREAS, the CAC has identified $220,000 in capital funds that can be provided to the
City as a non-interest bearing loan to perform the Colony Theater capital improvements, and it is
proposed that the 70% recapture provision ofthe revenue derived from the cafe and paid to the City,
be utilized to repay the CAC; and
WHEREAS, because the Colony will have undergone an extensive renovation and
improvement plan, it is deemed that upon full repayment ofthe loan to the CAC, that such funds be
re-directed back to the City to begin to establish a future maintenance reserve account for the Colony
Theater.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that $220,000 is hereby
appropriated from the Miami Beach Cultural Arts Council budget to provide matching funds in the
form of a non-interest bearing loan to fund a portion ofthe Colony Theater improvements estimated
to cost $1,500,000 and further authorizing that the City direct its 70% revenue recapture from the
Colony Theater Cafe to be utilized to repay the Cultural Arts Council.
PASSED and ADOPTED this 7th day of July, 1999.
f}J1
MAYOR
ATTEST:
JWw.r ft1t~
CITY CLERK
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CITY OF rv1IAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
htlp:\\ci. miami-beach. fL us
COMMISSION MEMORANDUM NO. ~
TO:
Mayor Neisen O. Kasdin and
Members of the City Co mission
DATE: July 7, 1999
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOLU ON OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROPRIATING $220,000 FROM
THE MIAMI BEACH CULTURAL ARTS COUNCIL BUDGET TO
PROVIDE MATCHING FUNDS IN THE FORM OF A NON-INTEREST
BEARING LOAN TO FUND A PORTION OF THE COLONY THEATER
IMPROVEMENTS ESTIMATED TO COST $1,500,000 AND FURTHER
AUTHORIZING THAT THE CITY DIRECT ITS 70% REVENUE
RECAPTURE FROM THE COLONY THEATER CAFE TO BE UTILIZED
TO REPAY THE CULTURAL ARTS COUNCIL.
RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
The Colony Theater is a historic theater that has received a $720,000 grant from Miami-Dade County
Cultural Affairs Council's Existing Facilities Grants to rehab and renovate the theater. The architect
contracted, Zeidler Roberts Partnership, has estimated that the total cost to renovate the theater is
$1.5 million. The proposed renovations will modernize the building, expand the backstage area and
bring the theater into full compliance with all ADA requirements.
The City intends to submit an application to the State's Cultural Arts Facilities Grants program in
August 1999. The maximum funding allocation is $500,000 per facility and is based on a 2: 1 match.
Therefore, in order to achieve maximum funding eligibility, the City/Colony Theater would have to
evidence $1,000,000 in available matching funds. At this time, the City has identified the following
funds to implement the improvements:
County Cultural Affairs Grant
ADA Improvements
Total Available Funding
Funding shortfall
$720,000
60.000
780,000
220.000
1,000,000
500.000
$1,500,000
State maximum grant allocation
Total Project Cost
AGENDA ITEM C. 1 C-
DATE 7 -1-99
Colony Theater
Commission Memorandum
July 7, ] 999
Page 2
In addition, the City is currently applying for a $250,000 grant from the Florida Department of State
Historical Resources Grant Program. However, State grant funds cannot be utilized as a match for
other State funding.
ANAL YSIS:
The City has explored all available funding sources to maximize the City's potential to access
maximum funding eligibility from the State's Cultural Arts Facilities Grant Program.
On May 27, 1999, City staff presented a request to the Miami Beach Cultural Arts Council (CAC),
after meeting with the CAC's Finance Committee, to approve and allocate funding in the amount of
$220,000 to complete the Colony Theater Capital Improvement Project. At this meeting, the CAC
Board resolved to work with City staff to provide such funds, subject to future reimbursement, in
order to maximize the City's grant leveraging capacity for the Colony Theater. Repayment of CAC's
funds is tied to the lease of the cafe space at the Colony Theater.
The City's existing Lease Agreement with the Concert Association for use of the Colony Theater
provides that the amount of revenue derived from the cafe that is located adjacent to the Colony
Theater be directed 70% to the City for maintenance, repairs and renovations and 30% to reduce the
City's subsidy to the Colony Theater.
The Concert Association lease at the Colony Theater expires on August 31, 2000, the restaurant is
currently unoccupied but the Concert Association is negotiating a proposed sublease with Mark
Soyka to improve and operate the restaurant for a monthly rent of $4,000 and for a term of six (6)
years with an option to extend for an additional three (3). Said sublease would further be subject to
the City's approval of a non-disturbance and attornment agreement in light of the Concert
Association's lease expiration on August 31, 2000.
It is proposed that if the City Commission authorizes the appropriation of $220,000 in the form of
a non-interest bearing loan to the City from CAC funds to perform the Colony Theater capital
improvements, that the 70% recapture of the cafe revenue received be utilized to repay the CAe.
At the proposed monthly rental of $4,000, the loan will be repaid over a 6 Y2 year period.
Furthermore, because the Colony will have undergone an extensive renovation and improvement
plan, it is deemed that upon full repayment of the loan to the CAC, that such funds be re-directed
to the City to establish a future maintenance reserve account for the Colony.
RECOMMENDATION:
It is recommended that the Mayor and Members of the City Commission approve the attached
resolution authorizing and appropriating $220,000 from the Miami Beach Cultural Arts Council
budget to provide matching funds in the form of a non-interest bearing loan to fund a portion of the
Colony Theater improvements estimated to cost $1.5 million and further authorizing that the City
direct its 70% revenue recapture from the Colony Theater Cafe to be utilized to repay the Cultural
Arts Council.
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