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2008-26958 ResoRESOLUTION NO. 2008-26958 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A PARKING LEASE AGREEMENT WITH THE NATIONAL MARINE MANUFACTURERS ASSOCIATION (NMMA) BOAT SHOW FOR THE PREFERRED PARKING LOT AND OTHER CITY PROPERTY ADJACENT TO THE BOAT SHOW EXHIBITION SPACE/PREMISES; SAID LEASE FOR THE BOAT SHOW DATES IN FEBRUARY 2009 AND 2010, RESPECTIVELY, AND RUNNING CONCURRENTLY WITH THE BOAT SHOW LEASE AGREEMENT FOR USE OF THE MIAMI BEACH CONVENTION CENTER. WHEREAS, the National Marine Manufacturers Association (NMMA) Boat Show entered into a Lease Agreement with the City for use of space in the Miami Beach Convention Center (MBCC) for specific dates in February 2009 and 2010, for the Miami International Boat Show (Boat Show); and WHEREAS, the Boat Show, through a separate lease with the City, has also the Preferred Parking Lot, located at 1800 Convention Center Drive, to extend its exhibit space from the interior of the MBCC; Municipal Surface Parking Lot No. 5H (at 19tH Street and Meridian), for exhibitor storage; metered parking spaces on the east side of Meridian Avenue (between 18th and 19th Streets) as a bus drop-off and/or pick-up ramp; and metered spaces (on south side of 18th Street, east of Convention Center Drive) for additional storage (collectively, hereinafter referred as the Premises); and WHEREAS, the Boat Show has leased the Premises for the past fifteen (15) years; and WHEREAS, the Administration has negotiated the attached new Parking Lease Agreement with NMMA, for the Boat Show dates in February 2009 and 2010, respectively; and WHEREAS, said Agreement is to run concurrently with the Boat Show Lease Agreement for use of the Miami Beach Convention Center; and WHEREAS, the attached Lease Agreement increases the net return to the City (over the previous lease agreement). NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA that the Mayor and City Commission, hereby approve and authorize the Mayor and City Clerk to execute the attached Parking Lease Agreement with the National Marine Manufacturers Association (NMMA) Boat Show for the Preferred Parking Lot, and other City property adjacent to the Boat Show exhibition space/premises; said Lease for the Boat Show dates in February 2009 and 2010, respectively, and running concurrently with the Boat Show Lease Agreement for use of the Miami Beach Convention Center. PASSED AND ADOPTED this 10th day of December , 2008 A OR Matti Herrera Bower ATTEST: ~ ~~~ CITY CLERK Robert Parcher APPROVED AS TO FORM & LANGUAGE ~ FOR EXECUTION City Attorn y Date JMG/RCM/SF F:\PING\$ALL\SAUL\NMMA2009. RES.doc COMMISSION ITEM SUMMARY Condensed Title: A Resolution approving a parking agreement lease with the NMMA (National Marine Manufactures' Association) Boat Show for the Preferred Parking Lot and Related Space; Additional Storage Space; and Services to be provided by the City's Parking Department, for specific dates in February 2009 and 2010, said lease running concurrently with the Boat Show lease with the Miami Beach Convention Center. Key Intended Outcome Supported: Improve Parking Availability; Maintain Financial Health and Overall Bond Rating. Supporting Data (Surveys, Environmental Scan, etc.): 74% of residents and 72% of businesses rate the availability of parking across the City as too little or much too little. Availability of parking was one of the chan es residents identified to Make Miami Beach better to live, work or la . Issue: W hether to approve a parking agreement lease with NMMA Boat Show for the Preferred Parking Lot and related services for specific dates in February 2009 and 2010? Item SummaryiKecommenaatlon: The City has maintained a lease for parking with NMMA (National Marine Manufacturers Association) fi the NMMA Miami International Boat Show, for the rental of the Preferred Parking Lot and related publ areas as extended exhibit space since 1993. The lease expired after the 2008 Boat Show. It is desiro~ that the Parking Lease Agreement be extended and that it run concurrent with the NMMA lease of tl- Miami Beach Convention Center, which is to expire in 2010. Anew two year agreement has bee negotiated. Primary changes are with rent and the supplemental shuttle bus run by the City. All other tern ', remain consistent with the previous agreements. Rents are being increased an average of 30.5 % over each of the two years. Rents will increase frorr $72,990 in 2008 to $95,622 and $112,235 in 2009 and 2010, respectively. The subsidy that NMMA has provided for the City run shuttle bus is being discontinued in 2009 and 2010. The NMMA subsidy in 200E was $12,500 and represented 50% of the cost. The City shuttle bus is an enhancement to the regular shuttle service provided by NMMA at their sole expense and has been intended to link our parking facilities and hotels. The City shuttle usage is low and in light of the negotiated subsidy elimination the City will adjust the roe to both reduce the cost to the City and to improve the shuttle headways. The City still believes that shuttle is a useful service to provide and will be able to assess after 2009 if the ridership and costs ju: the ongoing provision of the service. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Approved Funds: OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Saul Frances. Parkino Director Si n-Offs: Department Director Assis City Manager Gity Manager ~~ Agenda Item ~ ~~ Date / 2-/a--~~ m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov COMMISSION MEMORANDUM TO: Mayor Matti H. Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: December 10, 2008 sua~ECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING A PARKING AGREEMENT LEASE WITH THE NMMA (NATIONAL MARINE MANUFACTURERS' ASSOCIATION) BOAT SHOW FOR THE PREFERRED PARKING LOT AND RELATED SPACE; ADDITIONAL STORAGE SPACE; AND SERVICES TO BE PROVIDED BY THE CITY'S PARKING DEPARTMENT, FOR SPECIFIC DATES IN FEBRUARY 2009 AND 2010, SAID LEASE RUNNING CONCURRENTLY WITH THE BOAT SHOW LEASE WITH MIAMI BEACH CONVENTION CENTER. ADMINISTRATION RECOMMENDATION: Adopt the Resolution. BACKGROUND: On April 16, 1993, the City of Miami Beach entered into a Lease Agreement with NMMA (National Marine Manufacturers Association) for specific days in February 1994, 1995, 1996, 1997 and 1998 forthe NMMA Miami International Boat Show, forthe rental of the Preferred Parking Lot and related public areas as extended exhibit space. The Mayor and Commission approved a three (3) year agreement in 1998 for specific days in February 1999, 2000, and 2001. Subsequently, the Mayor and Commission approved a three (3) year agreement in 2001 for specific days in February 2002, 2003, and 2004. Most recently, the Mayor and Commission approved a five year agreement in 2004 for specific dates in February in 2004, 2005, 2006, 2007, and 2008. It is desirous that the Parking Lease Agreement run concurrent with the NMMA lease of the Miami Beach Convention Center. The NMMA Miami International Boat Show has a Lease Agreement with the Miami Beach Convention Center for specific dates in February 2005 through 2010. A two year parking lease agreement would expire concurrently with the MBCC lease agreement and would therefore allow for concurrent renewals, if approved. The NMMA desires to continue the rental of the Preferred Parking Lot for exhibit space and other areas for ancillary uses. The attached lease embodies the proposed Lease Agreement for the parking lot and related areas. November 5, 2008 NMMA Boat Show Parking Agreement Page 2 of 4 ANALYSIS: The following are the previous and revised terms as negotiated with NMMA and outlined in the attached agreement. All other terms remain consistent unless otherwise noted: Rental Fees: Existing Contract Language: The rental rate for the Premises shall be $72,990, including applicable sales tax, per year, in 2005; 2006; 2007; and 2008 respectively. Lessee also agrees to pay one-half of the cost of the City's park and ride shuttle operations. This subsidy is not to exceed $12,500 for each Boat Show provided in the term herein. Additionally, Lessee agrees to be solely responsible during the term herein for the payments of any and all taxes and/or assessments, particularly real estate taxes, which may be levied against the Premises as a result of Lessee's actions and operations thereon. Rental rate shall be adjusted annually based on the annual Consumer Price Index (CPI), or 3%, whichever is higher. Rent shall be paid to the City of Miami Beach Parking Department, 1130 Washington Avenue, Suite 100, Miami Beach, FL 33139, as follows: Fifty Percent (50%) of total rental fee and applicable sales tax and any other taxes which may become due, by February 1 of each successive year; and remaining balance within fifteen (15) days of the last show date each year. Proposed Contract Language: The rental rate for the Premises shall be $95,622.50 in 2009 and $112,235 in 2010, including applicable sales tax, per year. Additionally, Lessee agrees to be solely responsible during the term herein for the payments of any and all taxes and/or assessments, particularly real estate taxes, which may be levied against the Premises as a result of Lessee's actions and operations thereon. Rental rate shall be adjusted annually based on the annual Consumer Price Index (CPI), or 3%, whichever is higher. Rent shall be paid to the City of Miami Beach Parking Department, 309-23~ Street, Suite 200, Miami Beach, FL 33139, as follows: Fifty Percent (50%) of total rental fee and applicable sales tax and any other taxes which may become due, by February 1 of each successive year; and remaining balance within fifteen (15) days of the last show date each year. Fees are assessed on actual show dates. Any all fees for the move-in and move-out dates are included in the show date fees. The following is an itemized listing of the rental fees per year: a) Preferred Parking Lot (886 parking spaces): 886 parking spaces X $18.75 in 2009 and $22.50 in 2010 ($15.00 X 1.25 in 2009 and 1.5 in 2010 parking space turnover ratio) X five (5) days (2/12-16): 2009: $ 83,062.50 2010: $99,675.00 b) Municipal Surface Parking Lot No. 5H (26 parking spaces): 26 parking spaces X $10.00 (parking meter daily rental fee) X 31 days: 2009: $ 8,060.00 2010: $ 8,060.00 November 5, 2008 NMMA Boat Show Parking Agreement Page 3 of 4 c) Meridian Avenue Metered Parking Spaces (18 parking spaces): 18 on-street parking spaces X $10.00 (parking meter daily rental fee) X 9 days: 2009: $ 1,620.00 2010: $ 1,620.00 d) 18th Street Additional Storage Area (18 parking spaces): 18 parking spaces X $10.00 (parking meter daily rental fee) X 16 days: 2009: $ 2,880.00 2010: $ 2,880.00 Grand Total: 2009: $ 95,622.50 2010: $112,235.00 Over the years, NMMA has had excellent results by way of high ridership on their shuttle which services their venues. NMMA fully funds their own shuttle which services the Miami Beach Convention Center and other NMMA Boat Show venues on the mainland. NMMA will continue to fully fund and provide their shuttle service. In addition to the NMMA shuttle, the City's Parking Department has traditionally provided a park-and-ride shuttle servicing various beachfront parking lots; hotels along Collins Avenue between 21 St Street and 41St Streets (shuttle route); and the 42"d Street Garage. The shuttle has operated on all show dates; however, the 42"d Street Garage was serviced on Saturday, Sunday, and Monday/holiday only. The total cost of the shuttle last year was almost $24,500 and was funded equally between NMMA (their subsidy was a not to exceed amount of $12,500) and the City. Historically, the City's park-and- ride shuttle has had very low ridership; however, in order to provide a higher level of service as well as multiple parking options, the City (with NMMA's subsidy) has continued to provide the shuttle service. In light of the following factors, the shuttle service will be revised to a more efficient route and satellite parking facility which will in turn improve headways and reduce costs: • Expectations of reduced show attendance of both exhibitors and the public; and Increasing shuttle costs and historically low ridership which over the last four years averages a cost of $7.21 per rider. The City will continue to provide a park and ride shuttle services; however, it will be a more efficient route as it will service the 42"d Street Garage and the Collins Avenue hotels (on the shuttle route) on Saturday, Sunday, and Monday (holiday weekend) only. NMMA will no longer provide a subsidy for this park and ride shuttle. Please note that NMMA will continue to provide its full shuttle services on all show dates and to all of its show locations and the MDT South Beach Local (SBL) will continue to operate and support park and ride options from municipal lots and garages along Collins Avenue south of 17th Street. November 5, 2008 NMMA Boat Show Parking Agreement Page 4 of 4 Schedule of Use: The "Schedule of Use" has been revised to be consistent with the Move-In Dates, Show Dates, and Move-Out Dates schedules at the Miami Beach Convention Centerfor years 2009 and 2010. Notices: All contact information has been revised with current information. It is important to note that language shall remain in the agreement to provide for future development and/or proposed improvements to the Preferred Parking Lot, if and when it is deemed appropriate. CONCLUSION: The Lease Agreement proposed for the 2009 and 2010 Boat Shows command a rental rate for all parking related areas and services in the amount of $95,622.50 in 2009 and $112,235 in 2010 per year, this equates to an average annual increase of 30.5% over the prior year's rate $79,508). This excludes NMMA's shuttle subsidy of $12,250. The proposed lease represents a consensus document, and is in the best interest of the City of Miami Beach. The Administration recommends approval of the Resolution and the Lease Agreement. JMG/RCM/SF T:WGEN DA\2008\Dec10\consent\N MMA2009.cme.doc