2009-27075 Reso Inc.RESOLUTION NO. 2009-27075
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING FIRST
READING AND PUBLIC HEARING ON MAY 13, 2009, A FIRST
AMENDMENT TO THAT CERTAIN DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH, FLORIDA, AND UTA
MANAGEMENT, LLC (DEVELOPER), DATED APRIL 11, 2007, AS
REQUIRED PURSUANT TO SECTIONS 163.3220-163.3243, FLORIDA
STATUTES (THE "FLORIDA LOCAL GOVERNMENT DEVELOPMENT
AGREEMENT ACT"); SAID AMENDMENT PERTAINING TO THE
DEVELOPER'S ART IN PUBLIC PLACES (AIPP) CONTRIBUTION AND
PRESCRIBING FURTHER TERMS AND CONDITIONS FOR THE DESIGN,
FABRICATION, INSTALLATION AND MAINTENANCE OF THE
ARTWORK; APPROVING A COVENANT RUNNING WITH THE LAND
WHICH REQUIRES MBEACH1, LLLP (AN AFFILIATE OF DEVELOPER)
TO UNDERTAKE CERTAIN MAINTENANCE OBLIGATIONS WITH
RESPECT TO ONGOING CLEANING AND MAINTENANCE OF THE
ARTWORK; AND FURTHER SETTING THE SECOND READING AND
PUBLIC HEARING FOR THE FIRST AMENDMENT TO THE
DEVELOPMENT AGREEMENT FOR THE CITY COMMISSION MEETING
OF JUNE 3, 2009.
WHEREAS, MBeach1 is the fee simple owner ofthe property located at 1111 Lincoln Road
and 1666 Lenox Avenue in Miami Beach, Florida, (the "MBeach1 Property"); and
WHEREAS, the City is the owner of that certain land located on Lincoln Road between
Lenox Avenue and Alton Road, in Miami Beach, Florida; and
WHEREAS, in December 6, 2006, the City Commission adopted Resolution No. 2006-
26422, approving a conceptual plan for the closure of Lincoln Road to vehicles between Lenox
Avenue and Alton Road and construction of a pedestrian mall; and
WHEREAS, in March 14, 2007, the City Commission adopted Resolution No. 2007-26494,
approving a Development Agreement between the City and UTA Management, LLC ("UTA" or
"Developer"), for the design, development, and construction of certain improvements to the 1100
block of Lincoln Road, in conjunction with the project being developed by MBeach1, an affiliate of
UTA, at 1111 Lincoln Road, Miami Beach, Florida; and
WHEREAS, the City and UTA entered into a Development Agreement dated April 11, 2007
and recorded in Official Records Book 25537, Page 1882 of the Public Records of Miami-Dade
County, Florida; and
WHEREAS, as part of its obligation under the Development Agreement, UTA agreed to
match the City's Art in Public Places ("AIPP") contribution for a public artwork project on the 1100
block of Lincoln Road, between Lenox Avenue and Alton Road; and
WHEREAS, at its regular meeting on April 12, 2007, and in conjunction with its established
criteria, the AIPP Committee passed a motion establishing a Professional Advisory Committee
("PAC") for the selection of the public artwork to be sited on Lincoln Road, between Lenox Avenue
and Alton Road; and
WHEREAS, at the November 27, 2007, PAC meeting, the members had a presentation from
Dan Graham (the "Artist"), who discussed his concept for the public artwork to be sited on Lincoln
Road, between Lenox Avenue and Alton Road; the PAC unanimously agreed to proceed with a
direct selection, and recommended the Artist for the project (the AIPP Project); and
WHEREAS, at its meeting on June 17, 2008, the AiPP Committee unanimously selected the
preliminary proposal for the AiPP Project; and
WHEREAS, on July 30, 2008, the Neighborhoods/Community Affairs Committee reviewed
and recommended approval of the AiPP Project; and
WHEREAS, on August 20, 2008, a presentation was made to the Lincoln Road Merchants'
Association Board of Directors which voted unanimously in support of the AiPP Project; and
WHEREAS, on September 2, 2008, a presentation was made to the City's Design Review
Board and the Design Review Board unanimously approved the AiPP Project; and
WHEREAS, on October 7, 2008, the Mayor of the City and City Commission approved the
AiPP Project, pursuant to Resolution No. 2008-26924 (the "Resolution"); and
WHEREAS, the Resolution further provides that the Developer and MBeach1, LLLP
undertake certain ongoing maintenance obligations relating to the AiPP Project; and
WHEREAS, accordingly, the City Administration has negotiated the attached First
Amendment to the Development Agreement and Convenant Running with the Land; which
agreements, respectively, memorialize the City, Developer, and MBeach1 LLLP's respective
obligations with regard to the design, construction, installation and, thereafter, ongoing maintenance
of the AiPP Project.
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 hereby approve
and authorize, following first reading and public hearing on may 13, 2009, a FirstAmendment to that
certain Development Agreement between the City of Miami Beach, Florida, and UTA Management,
LLC (Developer), dated April 11, 2007, as required pursuant to Sections 163.3220-163.3243, Florida
Statutes (the "Florida Local Government Development Agreement Act"); said Amendment pertaining
to the Developer's Art in Public Places (AiPP) contribution and prescribing further terms and
conditions for the design, fabrication, installation and maintenance of the Artwork; approving a
Covenant Running with the Land which requires MBeach1, LLLP (an affiliate of Developer) to
undertake certain maintenance obligations with respect to ongoing cleaning and maintenance of the
Artwork; and further setting the second reading and public hearing for the First Amendment to the
Development Agreement for the City Commission meeting of June 3, 2009.
PASSED AND ADOPTED this _13th_ day of May , 2009.
ATTEST:
q/(~,
CITY CLERK
Robert Parcher
MAYOR
Matti Herrera Bower
JMG/HMF/mas
T:\AGENDA\2009\May 13\Consent\Arquitectonica RESO.d~
APPROVED AS TO
FORM & LANGUAGE
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution approving, following a first public hearing on May 13, 2009, a First Amendment to that certain Development
Agreement between the City of Miami Beach, Florida, and UTA Management, LLC (Developer), dated April 11, 2007, as
required pursuant to Sections 163.3220-163.3243, Florida Statutes (the "Florida Local Government Development
Agreement Act"); said Amendment pertaining to the Developer's Art in Public Places (AiPP) contribution and prescribing
further terms and conditions for the design, fabrication, installation, and maintenance of the Artwork; approving a
Covenant Running With the Land which requires MBeach1 LLLP (an affiliate of Developer) to undertake certain
Maintenance Obligations with respect to the ongoing cleaning and maintenance of the Artwork; and further setting the
second public hearing for the First Amendment to the Development Agreement for the City Commission Meeting of June
3, 2009.
Intended Outcome
Increase community rating of cultural activities.
Supporting Data (Surveys, Environmental Scan, etc.):
The 2007 Community Satisfaction Survey indicated that 60% pf residents and 60% of businesses feel the city has the right
amount of cultural activities.
Issue:
Shall the City Commission approve the Resolution?
Item 5ummary~Kecommenaation: PUBLIC HEARING
On December 6, 2006, the City Commission passed Resolution 2006-26422, approving a conceptual plan for the closure
of Lincoln Rd. to vehicles between Lenox Ave. and Alton Rd., and construction of a pedestrian mall. Subsequently on
March 14, 2007, the City approved a development agreement between the City and UTA for the development of
improvements to the 1100 Block of Lincoln Road. The approval included the inclusion of a public art project to be partially
funded by the developer.
On October 7, 2008, the City Commission passed Resolution 2008-26924 approving the AiPP project and authorizing the
City Manager to negotiate a an agreement with the Developer for the fabrication, installation and certain ongoing
maintenance of the AiPP Project.
As per Florida State Statute, amendments to a development agreement require two public hearings. To that end, the City
and Developer agreed on the terms to amend the Development Agreement, as more particularly set forth in the attached
Amendment, to set forth the terms and conditions of the design, fabrication, installation and maintenance of the AiPP
Project.
Advisory Board Recommendation:
Art in Public Places on June 17, 2008; Neighborhoods/Community Affairs on July 20, 2008; and Design Review Board on Sept. 2,
2008; have recommended in favor of the selected art project respectively. Although not an advisory board of the City, on August 20,
2008, the Lincoln Road Merchants Association Executive Board unanimously passed a motion endorsing the project.
Financial Information:
Source of Amount Account
Funds: ~ $75,000 Art in Public Places Fund 147 -Funding was previously appropriated in the
FY 2007/08 Capital Budget as part of the 1100 Lincoln Road (between
Lenox and Alton Project and ursuant to Resolution 2008-26924
OBPI Total $75,000
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Max Sklar, Tourism & Cultural Development Director
Sign-Off~,~ / ~
D ment ire r sistant City Manager City Manager
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'~' DATE S- 13 -a ~
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager FIRST READING
PUBLIC HEARING
DATE: May 13, 2009
suB~ECr: A RESOLUTION OF THE MAY AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, APPROVING, FOLLOWING FIRST READING AND PUBLIC
HEARING ON MAY 13, 2009, A FIRST AMENDMENT TO THAT CERTAIN
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA,
AND UTA MANAGEMENT, LLC (DEVELOPER), DATED APRIL 11, 2007, AS
REQUIRED PURSUANT TO SECTIONS 163.3220-163.3243, FLORIDA STATUTES
(THE "FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT"); SAID
AMENDMENT PERTAINING TO THE DEVELOPER'S ART IN PUBLIC PLACES (AIPP)
CONTRIBUTION AND PRESCRIBING FURTHER TERMS AND CONDITIONS FOR THE
DESIGN, FABRICATION, INSTALLATION AND MAINTENANCE OF THE ARTWORK;
APPROVING A COVENANT RUNNING WITH THE LAND WHICH REQUIRES
MBEACH1 LLLP (AN AFFILIATE OF DEVELOPER) TO UNDERTAKE CERTAIN
MAINTENANCE OBLIGATIONS WITH RESPECT TO ONGOING CLEANING AND
MAINTENANCE OF THE ARTWORK; AND FURTHER SETTING THE SECOND
READING AND PUBLIC HEARING FOR THE FIRST AMENDMENT TO THE
DEVELOPMENT AGREEMENT FOR THE CITY COMMISSION MEETING OF JUNE 3,
2009.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
BACKGROUND
On December 6, 2006, the City Commission adopted Resolution No. 2006-26422, approving a
conceptual plan for the closure of Lincoln Road to vehicles between Lenox Avenue and Alton Road,
and construction of a pedestrian mall. The Lincoln Road pedestrian mall, between Washington
Avenue and Lenox Avenue, is the best known commercial corridor in the City, which promotes
economic development and quality of life in the South Beach area. When the Design Review Board
approved the new parking garage with ground level accessory commercial uses at the intersection
of Lincoln Road and Alton Road, the applicant was encouraged to enter into discussions with the
City relative to exploring the possibility of closing this block of Lincoln Road to vehicular traffic, and
construction of a pedestrian mall all the way through to Alton Road. The Administration believed the
extension of the very successful pedestrian mall would benefit this portion of Lincoln Road and
reinforce the pedestrian experience of Lincoln Road from Washington Avenue to Alton Road. In
addition, the Finance and Citywide Projects Committee approved the concept plan and
recommended forwarding it to the City Commission for consideration and approval as a funded City
project.
UTA Development Agreement Amendment
May 13, 2009 City Commission Meeting
Page 2 of 3
On March 14, 2007, the City Commission adopted Resolution No. 2007-26494, approving a
Development Agreement between the City and UTA for the design, development, and
construction of certain improvements to the 1100 Block of Lincoln Road, in conjunction with the
project being developed by MBeach1, LLLP, an affiliate of UTA, at 1111 Lincoln Road, with the
City to match funds, in an amount not to exceed $75,000 from the Art in Public Places (AiPP)
Fund 147, for a public art project. The approval of this project by the City Commission resulted
in the AiPP Program receiving a contribution from the City Center RDA Capital Fund 365 as part
of the FY 2007/08 Capital Budget.
Subsequently the AiPP, consistent with its established guidelines, established a Professional
Advisory Committee (PAC) for the selection of a work of public art to be sited on Lincoln Road,
between Lenox Avenue and Alton Road. The PAC and AiPP Committee discussed this project
for more than a year, reviewing potential artists and their proposals. Dan Graham, Jeppe Hein,
Jenny Holzer, and Rachel Whiteread were among those considered for this project. Dan
Graham was selected after very extensive review as he was the most internationally
recognized: his sense of aesthetics and conceptual nature of his body of work would respond
best to the architectural environment: and his works have an interactive component. The PAC
also knew that Dan Graham and Herzog et de Meuron (the architect for the 1111 Lincoln Road
project) had been interested in collaborating with each other.
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT AND COVENANT RUNNING WITH
THE LAND
The Artwork was considered by the Neighborhoods/Community Affairs Committee on July 30,
2008, which unanimously passed a motion accepting the Art in Public Places Committee's
recommendation. Subsequently, the Artwork was reviewed by the Design Review Board on
August 5, 2008, and September 2, 2008, which also unanimously passed a motion accepting
the Art in Public Places Committee's recommendation. The Lincoln Road Merchants
Association also considered the project on August 20, 2008, and unanimously passed a
resolution in support of the Artwork.
On October 7, 2008, the Mayor of the City and City Commission approved the Artwork pursuant
to Resolution No. 2008-26924, and authorized the City Manager to negotiate an agreement with
Developer for the design, fabrication, installation and certain ongoing maintenance.
Accordingly, the City and Developer have negotiated a First Amendment to the Development
Agreement with the following major points:
Developer shall be responsible for the design; fabrication; and installation of the Artwork;
the City shall own the Artwork (upon acceptance by the City) and shall be responsible for
Fifty (50%) of the current estimated cost, or $75,000;
MBeach1, LLLP (MBeach1), an affiliate of the Developer and the fee simple owner of the
property located at 1111 Lincoln Road and 1666 Lenox Avenue in Miami Beach, shall be
responsible for: (i) cleaning, as frequently as it cleans its storefront glass: (ii) graffiti
removal on the proposed artwork; and (iii) developing an annual maintenance program
for the proposed Artwork, with the City being responsible for carrying out the
maintenance of the proposed Artwork (other than cleaning and graffiti removal);
UTA Development Agreement Amendment
May 13, 2009 City Commission Meeting
Page 3 of 3
• MBeach1's obligations shall be memorialized in a Covenant Running with the Land, and
to be recorded against the 1111 Lincoln Road property and binding all future owners;
• City (in addition to MBeach1's obligations under the Covenant) would enter into a 10
year agreement with UTA for the maintenance of the Artwork;
• UTA will provide the City with three additional sections (1 of each type) of glass at no
additional costs to the City;
• UTA will store the additional sections of glass at their location;
• UTA will coordinate the installation of glass when needed and the City will reimburse the
cost of labor;
• Once the three additional sections of glass are used, the City will have to reimburse UTA
for the purchase of additional glass sections, if needed.
• Once the artwork has been installed and professional appraisal completed, pursuant to
the approval received by the City Commission on October 7, 2008, via Resolution No.
2008-26924, the City is responsible for insuring the Artwork, either by including the
Artwork in the City's Fine Arts insurance policy (if available and provided the insurer
accepts coverage), or self insuring the Artwork. This specific item was negotiated
extensively by the Administration and UTA Management. Ultimately, the determination
whether to include the Artwork in the Fine Arts policy or whether to self insure shall at all
times remain within the sole discretion and determination of the City, through the City
Manager. However, if (at any time) the City elects to cover the Artwork under the Fine
Arts Policy, such coverage shall cover the replacement cost of the Artwork (as
determined by the last appraised value of the Work for insurance purposes). If (at any
time) the City elects the option to self insure the Artwork, the amount that the City shall
be responsible for shall be at least equal to the sum of $150,000 (which amount
represents the estimated total cost for the design, fabrication, and installation of the
Artwork as contemplated by the parties under the Development Agreement); provided
however, that the City's self insurance obligation shall be further subject to and
contingent upon the availability of such City funds.
CONCLUSION
The Administration recommends a resolution of the Mayor and City Commission of the City of
Miami Beach, Florida, approving, following First Reading and Public Hearing on May 13, 2009,
a First Amendment to that Certain Development Agreement between the City of Miami Beach,
Florida, and UTA Management, LLC (Developer), dated April 11, 2007, as required pursuant to
Section 163.3220-163.3243, Florida Statutes (the "Florida Local Government Development
Agreement Act"); said Amendment pertaining to the Developer's Art in Public Places (AiPP)
contribution and prescribing further terms and conditions for the design, fabrication, installation
and maintenance of the Artwork; approving a Covenant Running with the Land which require
MBeach1 LLLP (an affiliate of Developer) to undertake certain maintenance obligations with
respect to ongoing cleaning and maintenance of the Artwork; and further setting the Second
Reading and Public Hearing for the First Amendment to the Development Agreement for the
City Commission of June 3, 2009.
Attachments
T:\AGENDA~2009\May 13\Consent\Comm Memo Dan Graham Amendment Development Agreement (Final).doc.RTF