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2009-27100 ResoRESOLUTION NO. 2009-27100 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYORAND CITY CLERK TO EXECUTE A MANAGEMENT AGREEMENT WITH ALTOS DEL MAR SCULPTURE PARK, INC., A FLORIDA NOT-FOR-PROFIT CORPORATION, AS THE SUCCESSFUL PROPOSER I,N RESPONSE TO REQUEST FOR PROPOSALS NO. 02-07108 FOR ESTABLISHING A CULTURAL ARTS THEMED AND/OR PASSIVE RECREATIONAL ACTIVITIES PROGRAM IN ALTOS DEL MAR PARK; SAID AGREEMENT HAVING AN INITIAL TERM OF TEN (10) YEARS, WITH TWO (2) ADDITIONAL FIVE (5) YEAR RENEWAL OPTIONS, AT THE CITY'S SOLE AND ABSOLUTE DISCRETION. WHEREAS, the City is the owner of Altos del Mar Park (the "Park"); and WHEREAS, on October 17, 2007, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) No. 02-07108 for Establishing a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar Park located on Collins Avenue, between 76th and 77th Streets in the area of Miami Beach known as North Beach (the RFP); and WHEREAS, on July 16th, 2008, the Mayor and the Commission accepted the recommendation of the City Manager and authorized the City Administration to enter into negotiations with the successful proposer, Altos Del Mar Sculpture Park, Inc. (ADMSP); and WHEREAS, ADMSP wishes to establish a cultural arts themed program, as proposed by ADMSP, and to be known as the "Altos del Mar Sculpture Park" (the "Sculpture Park"); said Sculpture Park to be established in that area of the Park delineated in the RFP; and WHEREAS, ADMSP has obtained the services of ArquitectonicaGeo ("ARQGEO") to create the Sculpture Park concept plan and design; and WHEREAS, the design and construction and, thereafter, operation and maintenance of the Sculpture Park would be funded and undertaken by ADMSP, at its sole cost and responsibility; and WHEREAS, accordingly, the City and ADMSP have negotiated the attached Management Agreement for the aforestated purposes. 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 the Mayor and City Clerk to execute a Management Agreement with Altos Del Mar Sculpture Park, Inc., a Florida not-for-profit corporation, as the successful proposer in response to Request For Proposals No. 02-07/08 for Establishing a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar Park ;said Agreement having an initial term of ten (10) years, with two (2) additional five (5) year renewal options, at the City's sole and absolute discretion, PASSED AND ADOPTED this 3rd day of June, 2009. ATTEST: V W ~~ CITY CLERK Robert Parcher MAYO Matti Herrera Bower JMG/HMF/mas T:IAGENDA\2009Wune 3\RegularU2eso First Amendment UTA Development Agreement 5.13.09.doc gppRpn/Ep AS TO FORM ECUTIOP ~ FO~~ ~ c~ Q~ D to COMMISSION ITEM SUMMARY f`nnAnncnrl Ti41o• A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, authorizing the Mayor and City Clerk to execute a Management Agreement with Altos Del Mar Sculpture Park, Incorporated, a Florida Not-For-Profit Corporation pursuant to the completion of successful negotiations following Request for Proposals No. 02-07/08; said agreement having an initial term of ten (10) years with two (2) additional five (5) year renewal options at the City's sole and absolute discretion. Ke Intended Outcome Su orted: Increase community rating of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey shows that 73.3 % of residents and 58.7 % of businesses feel the City has the "right amount" of cultural events available. Residents also attend cultural activities (such as art shows, film festivals and live performances)10.61 times per year on average. The same survey shows that residents attend museums on average 6.85 times er ear. However,- 29.3% of residents also feel the Ci has "too few" museums. Issue: Shall the City Commission approve the Resolution? item summaryircecommenaaiion: On October 17, 2007, the Mayor and City Commission approved the issuance of Request for Proposals No. 02-07/08 to Establish a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar park, located on Collins Avenue, between 76th and 77th Streets (the RFP). On July 16, 2008, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the successful proposer, Altos Del Mar Sculpture Park, Inc, a not for profit Florida corporation (ADMSP). The Administration has been negotiating with ADMSP since November 2008 and have finalized a Management Agreement, whereby ADMSP would design, develop, operate and maintain a sculpture park within a portion of Altos Del Mar Park (to be known as the Altos Del Mar Sculpture Park), in accordance with its response to the RFP. As stated above, ADMSP's proposal contemplates the design, development, construction and, thereafter, operation and maintenance, of a public sculpture park (hereinafter referred to as the Sculpture Park). The Sculpture Park would display, in changing exhibitions, major works of sculpture from internationally established sculptors of the 19th, 20th, and 21st centuries. The artwork would be displayed in three (3) distinct landscaped areas--referred to, respectively, in ADMSP's proposal as the 1) "Dunefields," 2) Maritime Garden; and, 3) "Tree Allees."-- which are intended to serve as natural "outdoor galleries," and which would enable visitors to navigate freely through exhibits, enjoying the natural beauty created by the landscaped areas, as well as the beauty of the works of art themselves. In addition to the Proposed Improvements above, the City may elect to relocate the North Shore Branch Library (which is located on the southwest corner of the Park) to the North Beach Town Center area. Should the City elect to do so, and ADMSP be interested in re-purposing the library as a museum building, the City may elect to incorporate the library into the ADMSP site, in which case ADMSP would assist the City in financing the library relocation and would also, at its sole cost and expense, pay for all expenses to convert the existing library building into a museum building for the Sculpture Park. Advisory Board Recommendation: Finance and Citywide Projects Committee discussed the Agreement on May 5, 2009 and gave the Administration direction on a number of items. Financial Information: Source of Amount Account Funds: ~ OBPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin Max Sklar, Tourism & Cultural Development Director Si n-Offs: Department Director Assistant City Manager _ City Manager T:\AGENDA12009Uune3\RegularW DMSP m MIAMIBEACH AGMT Summary.doc AGENDA ITEM ~~ f DATE - 3-Q m !VUAMiBEACH OFFICE OF THE CITY ATTORNEY JOSE SMITH, CITY ATTORNEY COMMISSION MEMORANDUM Tp: Mayor Matti Herrera Bower and tubers of the City Commission FROM: Jose Smith, City Attor y cc: Jorge Gonzalez, Ci ~ ' elm PATE: June 3, 2009 suB~ECT: Altos del Mar Sculpture Park Management Agreement (Item R7K) The attached revision to Sections 4.2.2 (a) and (b) of the above-referenced Agreement replaces the existing language (on page 524 of the Agenda Packet). RJA/ed F:\attoWGUR\RESOS-ORD\MEMOSMItos del Mar Management Agreement (6-1-09 Replacement of Section 4.2.2).doc Agenda Item R7 K We are committed to providing excellent public service and safety to all who live, work, and play in our vibrc Date G( "3--~a m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, H,v,,W.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: June 3, 2009 SUBJECT: 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 MANAGEMENT AGREEMENT WITH ALTOS DEL MAR SCULPTURE PARK, INCORPORATED, A FLORIDA NOT-FOR-PROFIT CORPORATION, AS THE SUCCESSFUL PROPOSER IN RESPONSE TO REQUEST FOR PROPOSALS NO. 02-07/08 FOR ESTABLISHING A CULTURAL ARTS THEMED ANDIOR PASSIVE RECREATIONAL ACTIVITES PROGRAM IN ALTOS DEL MAR; SAID AGREEMENT HAVING AN INITIAL TERM OF TEN (10) YEARS WITH TWO (2) ADDITIONAL FIVE (5) YEAR RENEWAL OPTIONS, AT THE CITY'S SOLE AND ABSOLUTE DISCRETION. ADMINISTRATION RECOMMENDATION Adopt the resolution. BACKGROUND On October 17, 2007, the Mayor and City Commission approved the issuance of Request for Proposals No. 02-07/08 to establish a Cultural Arts Themed and/or Other Passive Recreational Activities Program in Altos Del Mar Park, located on Collins Avenue, between 76th and 77th Streets (the RFP). On July 16, 2008, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to enter into negotiations with the successful proposer, Altos Del Mar Sculpture Park, Inc, anot-for-profit Florida corporation (ADMSP). The Administration has been negotiating with ADMSP since November 2008 and have finalized a Management Agreement, whereby ADMSP would design, develop, operate and maintain a sculpture park within a portion of Altos Del Mar Park (to be known as the Altos Del Mar Sculpture Park), in accordance with its response to the RFP. As stated above, ADMSP's proposal contemplates the design, development, construction and, thereafter, operation and maintenance, of a public sculpture park (hereinafter referred to as the Sculpture Park). The Sculpture Park would display, in changing exhibitions, major works of sculpture from internationally established sculptors of the 19th, 20th, and 21st centuries. The artwork would be displayed in three (3) distinct landscaped areas--referred to, respectively, in ADMSP's proposal as the 1) "Dunefields;" 2) Maritime Garden; and, 3) "Tree Allees." These are intended to serve as natural "outdoor galleries," and would enable visitors to navigate freely through exhibits, enjoying the natural beauty created by the landscaped areas, as well as the beauty of the works of art themselves. Altos Del Mar Sculpture Park June 3, 2009 City Commission Meeting Page 2 of 5 ADMSP would be responsible for all costs associated with design, development, construction, operation, and maintenance of the Sculpture Park--including, without limitation, construction of all Proposed Improvements (as hereinafter defined). ADMSP has retained the services of ArquitectonicaGEO to create the proposed Sculpture Park Design. As currently defined in the Agreement, the Proposed Improvements contemplate the following: 1. At least eleven (11) concrete and steel foundations for the large sculptures (with each foundation measuring 5 meters by 5 meters by 1/2 to 1 meter); 2. At least twenty- five (25) foundations for the medium to small size sculptures (1 meter by 1 meter by .30 meter); 3. A 1200 square foot one-level entrance pavilion; 4. Restrooms and facilities such as water fountains and benches (which will be integrated throughout the Sculpture Park per the design); and 5. The actual landscaping for the three (3) "outdoor galleries." In addition to the Proposed Improvements above, the City may elect to relocate the North Shore Branch Library (which is located on the southwest corner of the Park) to the North Beach Town Center area. Should the City elect to do so, and ADMSP be interested in re-purposing the library as a museum building, the City may elect to incorporate the building into the ADMSP site. If the City elects to incorporate the building into the ADMSP site, ADMSP would assist the City in financing the library relocation and would also, at its sole cost and expense, pay for all costs associated with converting the library building into a museum building for the Sculpture Park. As is the case in most City management agreements, the City would own the Proposed Improvements upon completion of construction and acceptance by the City. Under the terms of the Agreement, ADMSP would be responsible for all ongoing maintenance of the Sculpture Park, including the Proposed Improvements. It would also be responsible for operation and management of the Park for its intended purposes. The primary use of the Sculpture Park is as a public cultural facility. As such, it will be free and open to the public 365 days a year, during daily hours of operation currently proposed from 10AM to sunset. In addition to the primary use as a sculpture park, ADMSP also plans to offer other public programs such as: art classes; guided tours by art historians; chamber music events; book readings; kite flying; outdoor cinema; tai chi and/or meditation classes; and yoga. Additionally, the Sculpture Park also wishes to be permitted to operate a gift shop/bookstore on the premises. As contemplated in the Agreement, the aforestated uses would be expressly set forth as "Approved Uses;" any additional and/or new uses (whether of a public and/or commercial/revenue generating nature) would require the prior written consent of the City (and, if approved, would be incorporated as an amendment to the Agreement). The Agreement also provides for the majority of these private events occurring after regular hours to ensure maximum access to the park for the public. In its proposal, ADMSP also requested that it be permitted to rent all or portions of the Sculpture Park for private events such as weddings. During the course of negotiations, ADMSP requested Altos Del Mar Sculpture Park June 3, 2009 City Commission Meeting Page 3 of 5 that, in addition to weddings, it also have the flexibility to rent the Sculpture Park for other similar social events such as baptisms, bar/bat mitzvahs, birthdays, graduations, fashion shows, etc. Rental of the premises would be subject to rates and policies and procedures which would be subject to prior City approval. Renters would be required to provide insurance naming the City as an additional insured, as well as fully indemnifying and holding the City harmless. A Special Event Permit would be required for certain events. Finally, as the primary use of the premises is as a sculpture park, the proposed Agreement provides for specific sections regarding the art work itself, and addresses considerations such as the procedure for selection and booking of art and exhibitions, as well as limitations on sale of art works, and insurance, maintenance and security requirements particular to works of art. ADMSP's proposal contemplates that the artwork and exhibitions will be selected, planned, and executed by certain committees of the not-for-profit entity (i.e. specifically, a design review committee, collection review committee, and an exhibition planning committee) comprised of ADMSP board members and recognized experts. Additionally, the Agreement requires that the City have equal representation on the ADMSP board (not less than 30%), which may include a member of the City Commission, the City Manager or his designee, or other persons selected by majority vote of the City Commission. ADMSP also proposes employing afull-time curator for the Sculpture Park. Selected works of art and artwork related to exhibitions shall be insured and secured by ADMSP at its sole cost and expense, and ADMSP shall indemnify and hold the city harmless against the loss or theft of any art work. The Agreement also prohibits the sale of artwork on the premises, to ensure that the primary use of the Sculpture Park is as a public cultural facility and not as a de-facto orquasi-private, commercial art gallery. As to selection of art works and booking of exhibitions, and in addition to the city representation on the aforestated selection committees, the Agreement also provides the City Manager with the right to prohibit certain events (or uses), or the display of certain works, in the event that he reasonably deems that the event, use, and/or particular work(s) might either present safety concerns or be a threat to the health, safety and morals of the public. The following pending items were discussed at the May 5, 2009 Finance and Citywide Projects Committee: 1. Term: While the RFP provides for an initial five (5) year term with one five (5) year renewal term, at the City's discretion, Addendum No. 2 of the RFP also gave the City the option to negotiate a longer term "... if the proposal awarded offers capital investment." As ADMSP's proposal does offer capital investment, they have requested an initial term of ten (10) years, with two (2) five year renewal options. ADMSP confirmed that a capital investment of $2.5 million is needed upfront and $1.7 million is needed for operating costs yearly. The Committee recommended in favor of an initial term of ten (10) years, with two (2) five year renewal options. 2. Rental of the Premises: As stated, ADMSP's proposal initially requested that it be permitted to rent the Premise for wedding receptions, on limited days and outside the normal hours of operation of the Sculpture Park (i.e. when it would not be open to the public). During negotiations, ADMSP requested that, in addition to weddings, it also be allowed to rent the premises for other social functions (under rates and policies and procedures approved by the City). The Committee recommended in favor of allowing ADMSP to hold additional Altos Del Mar Sculpture Park June 3, 2009 City Commission Meeting Page 4 of 5 events and asked that rules and regulations/guidelines be added about noise violations to the Agreement. Additionally, staff was directed to determine a certain number of times per year where ADMSP would be permitted to hold events during normal operating hours. The Agreement contemplates that certain events would be subject to application for Special Events permits. 3. Sale of Art Works: The Committee discussed this subject at length and recommended that the Agreement prohibit the sale of art works while exhibited in the Park, but the City could not limit sales following exhibition in the park. Furthermore, the Committee recommended allowing ADMSP to accept donated works of art and be allowed to sell donated work as long as sales proceeds are reinvested into the Park for ongoing maintenance and support of the Park. The Committee also recommended that ADMSP consider lending art, post exhibit, to the City for use in the Art in Public Places Program. 4. Naming Rights: ADMSP would like the ability to sell naming rights for the exhibition areas in order to support its programming. As the proposed exhibition areas are all outdoor areas within Altos Del Mar Park, the naming of these areas would, in essence, be akin to the naming of a portion of the Park itself and would currently trigger the provisions of the City's Naming Ordinance (unless the City Commission amended the Ordinance to specifically exempt Altos Del Mar Park or the Sculpture Park). The Committee recommended in favor of allowing ADMSP the ability to sell naming rights for the exhibition areas in order to support its programming. Furthermore, it was requested to add specification to the Agreement with regard to the signs' size, location and proportion. It was also requested that "and the City of Miami Beach" be added to the attribution signs. The Committee directed staff to amend the City's Naming Ordinance to allow for this inside the park, subject to review of signs. 5. ADMSP raised two additional points which were rejected by the City Attorney's Office during the course of negotiations. First, the City's title to Altos del Mar Park contains a deed restriction, which was disclosed to all proposers, including ADMSP, during the RFP process, which gives the State of Florida the right of first refusal if the City were ever to sell the property. ADMSP wants the City to represent that it will not sell the property during the term of the proposed Agreement. To our knowledge, the City has never agreed to a similar restriction on its property (in any other agreement), nor would we recommend that the City encumber the Altos Del Mar Park property now for this transaction. The Committee agreed that they City should not agree to this request. In subsequent negotiations ADMSP has indicated that they understand this limitation. The Committee also discussed whether or not ADMSP should be required to donate works of art to the City (for its Art in Public Places Program) periodically throughout the term of the Agreement. The Committee recommended against this as a requirement. Finally, the Committee recommended that the concept plan for the sculpture park go to the Planning Board for review and that any concerns raised by the Planning Board should be directed to the Commission. It should be noted that Section 9.7.5 of the Agreement requires Planning Board approval of the Concept Plan. ADMSP is required to submit the Concept Plan Design to the City Manager and subsequently to the Planning Board, for its review and recommendation. Following review of the Concept Plan Design by the City Manager and the Planning Board, the Concept Plan Design shall be submitted for review and approval by the City Commission at a regularly scheduled meeting. Final approval of the Concept Plan Design will Altos Del Mar Sculpture Park June 3, 2009 City Commission Meeting Page 5 of 5 rest with the City Commission. The Administration believes this addresses the Finance Committee's request. The Administration also added an option in the Agreement which allows ADMSP to repair the public art piece "Red Sea Road", which was damaged by Hurricane Wilma. ADMSP has been working with artist Barbara Neijna and they are close to an agreement for its repair. If ADMSP funds the repair of the sculpture, the City will loan the piece to ADMSP for exhibition through at least the end of the initial term of the agreement. CONCLUSION The Administration recommends adopting this resolution, which authorizes the Mayor and City Clerk to execute the Management Agreement between the City and ADMSP for the use of Altos del Mar Park. Attachments T:\AGENDA\2009Uune 3\Regular\ADMSP Mgmt Agmnt Memo.doc.RTF