LTC 197-2005 New World Symphony - Soundspace Project Status Report
CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. 197-2005
m
To:
Mayor David Dermer and
Members of the City Commi
Date: July 25, 2005
From: Jorge M. Gonzal
City Manager
Subject: ny - Soundspace Project Status Report
On September 8, 2004, the Mayor and City Commission adopted Resolution No. 2004-
25681, approving Concept Plan #4 presented by the NWS; referring the issue of the Park
design to the Finance and Citywide Projects Committee; requesting the Design Review
Board to do a preliminary design review and send it back to City Commission for review
and approval; and addressing the parking space issue,
By way of background, Concept Plan #4 provides for Soundspace and related support
structures, including the garage, to be situated on the surface parking lot west of Drexel
Avenue and for a park and function/performance space area to occupy the lot east of
Drexel Avenue. The main entrance lobby and drop-off area would be on Drexel Avenue,
with support and classroom space occupying the south side of the lot. The garage would
be located on the west side of the lot, with entrance and egress located on Pennsylvania
Avenue. In order to enhance the facility's visibility from Lincoln Road and the surrounding
area, the main entrance is characterized by a 65-75ft-high architectural element. The plan
also calls for Drexel Avenue to meander eastward into the Park between Lincoln Lane and
17th Street, which provides a unique opportunity to integrate Drexel Avenue into the design
of Soundspace, creating a true public plaza-type feel and providing the ability to close the
street during certain Park-related events. As part of Concept Plan #4, an integrated park
component was incorporated in the project site.
Pursuant to the direction of the City Commission on September 8, 2004 and consistent
with the Planning Board's August 24, 2004 recommendation that the entire two (2) blocks,
including the Park, be designed as an integrated site, Gehry Partners LLP was asked to
submit a proposal and cost estimate to undertake design services for the proposed Park.
The proposal was submitted for review by the Finance and Citywide Projects Committee at
its meeting on October 26, 2004.
It should be noted that as basis for preparing the cost estimate, a coordination meeting
was held between Gehry Partners and Chen and Associates, the firm engaged by the City
to undertake the City Center right-of-way (ROW) improvement program. The purpose of
the meeting was to define the respective firms' scope of work relative to those street
improvements immediately surrounding the 17th Street Surface lots. For the purpose of this
discussion, Gehry Partners developed a site plan, dividing the site and the immediate area
surrounding the site into a series of seven zones, in order to come up with add-alternate
pricing for the City's consideration. A site map reflecting these zones is included in this
Letter to Commission
New World Symphony - Soundspace Project
Status Report, July, 2005
Page 20f5
report. The proposal comprises add-alternate pricing for Zone 1, comprising the east
surface lot and Drexel Avenue; Zone 2, comprising the area adjacent to TOPA; and Zone
3, encompassing Lincoln Lane. The areas in Zones 4 through 7, fall under Chen &
Associates' scope of work.
The total cost for Zone 1, comprising the park, Drexel Avenue and improvements adjacent
to the new garage, has been estimated at $1 0 Million in 2008 dollars. It is important to note
that this number represents a "build-to" number rather than a set cost for the entire Project.
Zone 2, comprising the TOPA entry landscaping has been estimated a $1,150,000 and
Zone 3, comprising Lincoln Lane improvements, at $500,000.
During the Finance and Citywide Projects Committee meeting, Commissioner Gross
emphasized the importance of enhancing the connection between Convention Center Drive
and Lincoln Road via Pennsylvania Avenue.
The City Manager emphasized the fact that even though Gehry Partners was engaged by
the NWS, the City will retain discretion over the design of the Park component.
Furthermore, the NWS has committed to using a Basis of Design (BODR) process, to
include community design workshops in developing its plans for the Park, and requiring
City Commission approval of the final Park Project design.
The Committee recommended in favor of amending the Development Agreement between
the City and NWS to expand the NWS' scope to include the design and development of the
Zone 1, comprising the park, Drexel Avenue between North Lincoln Lane and 17th Street
and improvements adjacent to the new garage, at the Owner's cost and expense, not to
exceed $10,000,000; Zone 2, comprising the Theater of the Performing Arts entry
landscaping at the Owner's cost and expense, not to exceed $1,150,000; and Zone 3,
comprising North Lincoln Lane improvements, at the Owner's cost and expense, not to
exceed $500,000.
On December 8, 2004, the Mayor and Commission held a duly noticed public hearing to
consider on first reading, a first amendment to the Development Agreement relative to the
City and NWS' respective responsibilities regarding the design and construction of the Park
Project. At such time, the Mayor and City Commission discussed the proposed first
addendum and expressed concerns with proceeding with the Park Project and the
corresponding commitment of expenditure of funds, without ensuring NWS commitment to
proceed with its Soundspace project.
On January 26, 2005, a meeting was held in which the NWS informed the City that it was
not prepared to formally announce the status of its capital campaign.
Based on the City's request for assurances that Soundspace will proceed, the parties
discussed the importance of developing the Project as one integrated site and as such, the
importance of continuing the planning process without delay. In recognition of this, the City
has requested that the Architect provide a not-to-exceed estimated cost to prepare
schematics for the Park component, culminating in a Basis of Design Report (BODR). In
Letter to Commission
New World Symphony - Soundspace Project
Status Report, July, 2005
Page 30f6
addition, the City and the NWS need to finalize discussions relative to the Architect's
scope, to include defining the site boundaries and responsibilities relative to North Lincoln
Lane. The City should then discuss and determine if it will commit to the level offunding to
fund the BOOR with the NWS' subsequent commitment to provide evidence offunding for
Soundspace at such time before the City would proceed further in developing construction
documents for the Park. Therefore, the City's only commitment, at risk, would be the
funding of the BOOR.
A follow-up meeting was held with NWS on March 15, 2005, to introduce Gonzalo
Cortabarria, a representative of Hines, NWS' new Project Manager and to provide
information relative to the permitting process and costs to be anticipated with the
Soundspace Project. NWS indicated that it was still not sure, as to when it would be
prepared to make any formal announcements or proceed with the amendment to the
Agreement. Consequently, at the City Commission Meeting on April 20, 2005, the
Administration recommended putting on hold the public hearing process to amend the
Agreement and to refer the discussion to the Finance and Citywide Projects Committee at
such time that the NWS is prepared to proceed.
Since this time the Administration has been working with Hines, to provide the basis for
estimating permit and impact fees related to the Project. In May, staff was informed that
the estimated Soundspace Project costs had come in higher than NWS' expectations,
requiring a value engineering process to revisit the numbers.
The next milestone to be achieved pursuant to the Development Agreement involves
delivery of the preliminary plans and specifications for the Soundspace Project on or
before January 8, 2006, (16 months from the date of the City's approval of the preferred
Concept Plan, which occurred on September 8, 2004). On July 19, 2005, Staff met with
NWS and representatives from Hines to ensure that progress was being made towards
achieving this deadline. NWS assured the City that design of the Project was indeed
progressing and that the preliminary plans and specifications would be submitted for the
City Manager's review within the specified time frame. NWS also reported that for the
purpose of finalizing discussions with the City relative to the amendment language in the
Development Agreement, it was working on developing cost estimates to prepare the
conceptual design schematics for the Park as well as to undertake the BOOR process.
The attached time line has been prepared, reflecting actual milestone occurrences that
have been achieved since the execution of the Development and Lease Agreement with
NWS, as well as projected outside dates for deliverables as provided for in the
Agreements.
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Letter to Commission
New World Symphony - Soundspace Project
Status Report, July, 2005
Page 4 of5
Date
01/05/04
03/29/04
OS/25/04
07/29/04
08/24/04
09/08/04
New World Symphony - Sounds pace Project
Development Agreement Timeline Projection
(As of July, 2005)
Event/Milestone (Actual Occurrences)
Development & Lease Agreement with NWS approved.
Three project concept plan alternatives presented and reviewed by CMB.
Preliminary Planning Board review of plan alternatives.
Three new concept plan alternatives presented to CMB for consideration
- maintaining Drexel Ave open to traffic.
New concept plan alternatives presented to Planning Board. Concept
Plan #4 favored.
Project Concept Plan approval by City Commission (Default deadline for
Commission approval-10/01/05 sec 2.2)
Referral to Finance Committee to consider amending Development
Agreement to include design and development of the Park.
Commence preliminary plans/specs (16 months) See 2.3(b)
10/26/04
Projected
Outside Date(*)
Pending
Pending
Finance Committee recommends in favor of amending Development
Agreement to expand the NWS' scope to include the design and
development of the Zone 1 , comprising the park, Drexel Avenue between
North Lincoln Lane and 17th Street and improvements adjacent to the
new garage, at the Owner's cost and expense, not to exceed
$10,000,000; Zone 2, comprising the Theater of the Performing Arts entry
landscaping at the Owner's cost and expense, not to exceed $1,150,000;
and Zone 3, comprising North Lincoln Lane improvements, at the
Owner's cost and expense, not to exceed $500,000.
Event/Milestone
(Tentative) 1st Reading of First Amendment to Development
Agreement (pending finalizing of NWS funding commitments)
2nd Reading of First Amendment to Development Agreement
Note: Agreement currently does not address providing evidence of funding
commitments by NWS, the timeline related thereto or capping level of CMB's funding
commitment towards BOOR process. These issues will have to be addressed in
finalizing amendment language.
Letter to Commission
New World Symphony - Soundspace Project
Status Report, July, 2005
Page 5 of 5
Projected
Outside Dates(*)
Event/Milestone
01/08/06
Preliminary plans/specs to Owner (2 months) See 2.3(b)
03/08/06
09/08/06
09/08/06
11/08/07
12/08/07
months)
Submit preliminary plans/specs to DRB (6 months)
DRB approves preliminary plans/specs
Commence final plans/specs (14 months) See 2.4
Final plans/specs to Owner (1 month)
Final plans/specs to Planning Board for approval (3
Note: Prior to obtaining building permit, CMB & NWS to negotiate
Management and Operating Agreement for programming of Screen.
02/08/08
Apply for Building Permit (3 months)
Note: Prior to commencing construction, payment and performance
bond to be provided to CMB or Letter of Credit = to 100% of cost of
improvements.
05/08/08(**)
06/30/09
Commence Construction Sound Space and Garage
Est. Completion of Garage (13 mos)
07/08/10
Est. Completion of Sound Space (26 mos)
Note: (*) Estimated outside dates based upon time frames specified in
referenced sections of Development Agreement.
Note: (**) Construction cannot commence until the earlier of (a) CMS has
completed construction and begun operating City Hall Exp Garage or (b)
alternate replacement parking acceptable to CMS has been identified by NWS;
or (c) May 30,2007,
Note: Timeline does not include Park component, pending amendment
to Development Agreement.
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