590-2012 RDA Reso RESOLUTION NO., 590-2012
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY(RDA), APPROVING FUNDING, IN AN
AMOUNT NOT TO EXCEED $250,000, TO ADDRESS THE RELOCATION
OF THE KITCHEN EXHAUST VENTING SYSTEM INSTALLED BY THE
PENNSYLVANIA AVENUE GARAGE RETAIL TENANT, PENN 17, LLC.
(d/b/a COOPER AVENUE); WITH FUNDING AVAILABLE FROM
PREVIOUSLY APPROPRIATED CITY CENTER RDA CAPITAL FUND 365;
AND FURTHER, AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR
AND PENN 17, LLC TO NEGOTIATE AND , IF SUCCESSFUL, EXECUTE AN
AGREEMENT TO PROCEED WITH THE RE-DESIGN, PERMITTING AND
CONSTRUCTION OF A KITCHEN EXHAUST VENTING SYSTEM THAT
DISCHARGES AWAY FROM THE SERVICE ALLEY LOCATED BETWEEN
THE NEW WORLD SYMPHONY BUILDING AND THE PENNSYLVANIA
AVENUE GARAGE.
WHEREAS, April 13, 2011, the Mayor and City Commission approved Resolution No.
2011-27647, approving a Lease Agreement, between the City, the Miami Beach
Redevelopment Agency (RDA) and Penn 17 LLC (Tenant), for use of approximately 7,655
square feet of ground level retail space at the Pennsylvania Avenue Garage, 1661 Pennsylvania
Avenue, Miami Beach, Florida, for a restaurant (primary use), with ancillary uses for a bakery, a
bar/cafe, and a book and gift shop (hereinafter Premises or Cooper Avenue); and
WHEREAS, the challenges in converting the Premises for use as a restaurant have
proved considerably more complex, time-consuming, and costly than originally anticipated, by
Tenant, including the engineering and permitting of the venting for the kitchen exhaust, which
involved extensive input from the City's Planning and Building Departments, as well as other
regulatory entities in the final approved plan ; and
WHEREAS, on September 24, 2012, Tenant received a Temporary Certificate of
Occupancy for the Premises; and
WHEREAS, on August 17, 2012, the New World Symphony (NWS) contacted the City
expressing its concern over the venting locations of the kitchen exhaust and steam vent from
the dishwashers, which are currently directed into the service alley between the Garage and the
NWS building; and
WHEREAS, on September 10, 2012, the City entered into a Letter Agreement with the
Tenant authorizing it to retain an architect/engineer (A&E), pertaining to the engagement of
architectural/engineering services, for a not-to-exceed cost to the City of $25,000, in order to
develop conceptual design options and preliminary pricing estimates to modify the exhaust
venting system and,
WHEREAS, on September 21, 2012, the Tenant's A&E, Design 3 Architecture,
presented two options for re-directing the Tenant's exhaust; Option 1, for a price of $59,000,
involving the least complex and most cost effective solution; and Option 2, for a price of
$181,000, involving a significantly more complex solution; and
WHEREAS, on October 24, 2012, the City Commission deferred authorizing the
Administration to negotiate an agreement with the Tenant to proceed with the design, permitting
and construction of the modifications based upon either Option 1 or Option 2, and instructed the
Administration to consider other options and provide a more detailed report at the Finance and
Citywide Projects Committee (FCWPC) meeting of November 9th, 2012; and
WHEREAS, since the Administration was unable to obtain and analyze the cost
estimates and most feasible remedies within such a short time frame, the FCWPC
recommended that the Administration be authorized to negotiate an agreement with the Tenant
to proceed with the design, permitting, and construction of the most feasible remedy, in an
amount not to exceed $250,000.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA), that the
Chairperson and Members of RDA approve funding, in an amount not to exceed $250,000 to
address the relocation of the kitchen exhaust venting system installed by the Pennsylvania
Avenue Garage Retail Tenant, Penn 17, LLC ( d/b/a Cooper Avenue); with funding available
from previously appropriated City Center RDA Capital Fund 365; and further, authorize the
Interim Executive Director and Penn 17 LLC, to negotiate and, if successful, execute an
agreement to proceed with the re-design, permitting and construction of a kitchen exhaust
venting system that discharges away from the service alley located between the New World
Symphony Building and the Pennsylvania Avenue Garage.
PASSED AND ADOPTED this 14th day of November, 2012.
ATTEST:
1
atti Herrera Bower, Chairperson
Rafaei Granado, tecretary =INCORP ORA ED
I =
APPROVED AS TO
FORM & LANGUAGE �, `"
& FOR EXECUTION
to
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REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution approving funding, in an amount not to exceed $250,000, to address the relocation of the kitchen
exhaust venting system installed by the Pennsylvania Avenue Garage Retail Tenant, Penn 17, LLC (d/b/a Cooper
Avenue) (Tenant); with funding available from previously appropriated City Center RDA Capital Fund 365; and
further, authorizing the Interim Executive Director to negotiate terms of an agreement with Penn 17, LLC to proceed
in redesigning, permitting and constructing a kitchen exhaust venting system that discharges away from the service
alley located between the New World Symphony building and the Pennsylvania Avenue Garage.
Key Intended Outcome Supported:
Not Applicable
Supporting Data (Surveys, Environmental Scan,etc.):
Not Applicable
Issue:
Shall the City authorize the reallocation of funds from City Center Fund 365 towards funding the relocation of the
kitchen exhaust system and further authorize the Interim City Manager to negotiate terms of an agreement with
Penn 17, LLC to proceed with the recommended scope?
Item Summary/Recommendation:
On August 17, 2012, the New World Symphony (NWS), expressed major concern over the Tenant's build-out
involving the venting locations of the kitchen exhaust and steam vent from the dishwashers, which both direct into
the service alley between the Garage and NWS; saying that the exhaust has the potential of permeating the NWS
performance hall every time the loading dock doors are opened. On September 10, 2012, the Administration
entered into a Letter Agreement with the Tenant to engage an architectural/engineering firm, at a not-to-exceed
cost to the City of $25,000, to develop conceptual design options and preliminary pricing estimates to modify the
exhaust venting system. On September 21, 2012 the Tenant's Architect, Design 3 Architecture, presented two
options for redirecting the Tenant's exhaust: Option 1 for a price of$59,000, involving the least complex and most
cost effective solution; and Option 2 for a price of $181,000, involving a significantly more complex and potentially
disruptive scope of work. In an effort to find a feasible solution, savings have been identified from the original
construction budget of the Pennsylvania Avenue Garage(RDA fund 365)that can be made available to remedy the
issue. At this time, the Administration requests authority to allocate up to $250,000 to proceed with Option 2 to
address this issue. On October 24, 2012, the City Commission deferred authorizing the Administration to negotiate
an agreement with the Tenant to proceed with the design, permitting and construction of the modifications based
upon either Option 1 or Option 2, and instructed the Administration to consider other options and provide a more
detailed report at the Finance and Citywide Projects Committee (FCWPC) meeting of November 9th. However, the
Administration was unable to obtain and analyze the cost estimates and most feasible remedies within such a short
time frame. Therefore, the FCWPC recommended that the Administration be authorized to negotiate an agreement
with the Tenant to proceed with the design, permitting, and construction of the most feasible remedy, in an amount
not to exceed $250,000, from the identified funding source.
Advisory Board Recommendation:
Finance &Citywide Projects Committee approved on November 9, 2012.
Financial Information:
Source of Amount Account
Funds: City 50,000 Fund 365
RDA
Financial Impact ummary: Funding is being reallocated from savings realized from the construction of the
Pennsylvania Avenue Garage.
City Clerk's Office Legislative Tracking:
Anna Parekh, ext. 6471
Sign-Offs:
RDA Coordinator Actin Assi t Di ector Interim Execut' erector
MP MA KGB.
K /MAS/AP/MP/KOB ly
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MIAMIBEACHAGENDA ITEM
SATE 'v
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MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelop nt Agency
FROM: Kathie G. Brooks, Interim Executive Director •
DATE: November 14, 2012
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY, APPROVING FUNDING, IN AN AMOUNT NOT TO
EXCEED $250,000, TO ADDRESS THE RELOCATION OF THE KITCHEN EXHAUST
VENTING SYSTEM INSTALLED BY THE PENNSYLVANIA AVENUE GARAGE
RETAIL TENANT, PENN 17, LLC. (d/b/a COOPER AVENUE); WITH FUNDING
AVAILABLE FROM PREVIOUSLY APPROPRIATED CITY CENTER CAPITAL FUND
365; AND FURTHER, AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR AND
PENN 17, LLC TO NEGOTIATE AND, IF SUCCESSFUL, EXECUTE AN AGREEMENT
TO PROCEED WITH THE RE-DESIGN, PERMITTING AND CONSTRUCTING OF
KITCHEN EXHAUST VENTING SYSTEM THAT DISCHARGES AWAY FROM THE
SERVICE ALLEY LOCATED BETWEEN THE NEW WORLD SYMPHONY BUILDING
AND THE PENNSYLVANIA AVENUE GARAGE.
BACKGROUND
On April 13, 2011, the Mayor and City Commission passed Resolution No. 2011-27647, approving
a Lease Agreement, as amended on February 8, 2012 and June 6, 2012, respectively (the
Lease), having a term of nine (9) years and 364 days, between the City, the Redevelopment
Agency (RDA) and Penn 17, LLC, for use of approximately 7,655 square feet of ground level retail
space at the Pennsylvania Avenue Garage, 1661 Pennsylvania Avenue, Miami Beach, Florida, for
a restaurant (primary use), with ancillary uses for a bakery, a bar/cafe, and a book and gift shop.
The Resolution also approved the execution of a Pre-Lease Due Diligence Review Agreement,
granting the Tenant a maximum of six (6) months following approval of the Lease, in which to
reserve its leasing rights while advancing design and plan development and consulting with the
City's Planning and Building Departments in order to ascertain the feasibility of obtaining a full
building permit prior to actual commencement of the Lease. During the first full year of rent, the
annual Base Rent will be $574,125, plus Common Area Maintenance costs of $98,844 (paid
monthly at $47,843.75 plus $8,237, respectively, for a total of$56,080.75 monthly).
As has been reported on previous occasions, the challenges in converting the Premises for use as
a restaurant proved considerably more complex, time-consuming and substantially more costly
than originally anticipated by the Tenant; particularly related to the engineering and permitting of
the venting for the kitchen exhaust; installing a system of multiple grease traps; the build-out of
the storage room and the design of the structural slab; restoration of the existing structural slab in
the retail space following partial demolition to install the plumbing; and addressing additional flood-
proofing criteria. The Tenant's plans underwent extensive revisions to address comments and
concerns raised by the City's Planning and Building Departments, as well as certain other
regulatory agencies, as part of the permitting review process. Ultimately, the Tenant has invested
more than $5 million to improve the Premises.
i
Pennsylvania Avenue Garage Exhaust Vent Relocation
Redevelopment Agency Memorandum
November 14, 2012
Page 2 of 4
On September 24, 2012, the Tenant received a Temporary Certificate of Occupancy (TCO) for its
restaurant, Cooper Avenue.
ANALYSIS
On August 17, 2012, as the build-out of Cooper Avenue was nearing completion, the City was
contacted by the New World Symphony (NWS), which expressed major concerns over the venting
locations of the Tenant's kitchen exhaust and steam vent from the dishwashers, which both direct
into the service alley between the Garage and NWS. The NWS believes the kitchen exhaust could
potentially permeate the performance hall every time the loading dock doors are opened (which
are directly opposite the kitchen exhaust vent). As noted earlier, given the structural and
architectural constraints of the building, identifying a feasible location to run the kitchen exhaust
proved to be among the most challenging of the design issues, involving extensive input from
Planning, Building and other regulatory entities in the final approved plan.
Following an extensive series of meetings with representatives from the NWS and the Tenant's
management and design team to figure out options for mitigating odors emanating from the
exhaust venting, the NWS has instead demanded that the City and Tenant explore design
alternatives for redirecting the kitchen exhaust in its entirety, away from the alley. Although the
discussions centered on the fact that the City could not yet know whether or not there was a
problem, in an abundance of caution the City authorized the tenant to direct his architect to
develop several alternatives to address the NWS concerns.
On September 10, 2012, the City entered into a Letter Agreement with the Tenant pertaining to the
engagement of architectural/engineering services, at a not-to-exceed cost to the City of $25,000, in
order to develop conceptual design options and preliminary pricing estimates to modify the exhaust
venting system for the City's consideration and approval; and further to include services for the
preparation of detailed plans and specifications (including any layouts, architectural, mechanical,
structural, electrical and other plans, drawings and construction documents in sufficient detail to
obtain any and all appropriate regulatory permits), as may be reasonably required by the City's
Building Department in order to process and review Tenant's permit application for such
modification as approved.
Subsequent to the opening of the Cooper Avenue restaurant it has been determined that there is
odor in the alleyway between the garage and concert hall. While it is not known if the odors would
permeate the inside of the performance hall, in order to address a potential negative impact the
Administration suggest that the Commission consider relocating the vents.
On September 21, 2012 the Tenant's Architect, Design 3 Architecture, presented two options for
redirecting the Tenant's exhaust in order of feasibility, complexity and cost as follows:
Option 1 —Total Estimated Minimum Cost: $59,000
The most feasible, the least complex and most cost-effective approach provides for maintaining
the existing location of the exhaust fans on the cover slab over the garbage room. This provides for
a stable working platform by which to maintain and service the fans and duct work. The ducting
and exhaust vent leading to the exterior of the building facing the New World Symphony's loading
dock, would be rerouted 90 degrees to the north and discharge directly above the garage entrance
located on 17th Street.
Pennsylvania Avenue Garage Exhaust Vent Relocation
Redevelopment Agency Memorandum
November 14, 2012
Page 3 of 4
Option 2 —Total Estimates! Minimum Cost: $181,000
The most complex and costliest of the solutions and the least feasible, (primarily in terms of the
anticipated operational disruption for the Tenant due to the construction involved), involves the
complete relocation and re-engineering of the exhaust ducting, extending it south and then west to
discharge over the garage exit on Pennsylvania Avenue. This would also require the construction
of an elevated concrete pad over the flood panel storage enclosure, to relocate and support the
exhaust fans needed to drive the exhaust through the ducting.
It should be noted that the New World Symphony views Option 2 as the only choice, as it extends
the exhaust discharge the furthest away from the service alley.
At the City Commission meeting on October 24, 2012, the Administration recommended adopting
a resolution appropriating an amount not to exceed $250,000 to provide the greatest amount of
flexibility to remedy this issue in the most feasible manner. The Administration also recommended
that the City Commission authorize the Interim City Manager to negotiate an agreement with the
Tenant to proceed with the design, permitting and construction of the modifications, based on
either Option 1 or 2.
However, during the October 24th discussion, the City Commission expressed concern in making a
decision based on estimates which were only preliminary in nature and without having the benefit
of truly evaluating the options as presented. The Commission also suggested that more efficient
and/or cost-effective solutions may be available, including the option of carbon filtration, which
should be explored further before coming back with a recommendation. To this end, the
Administration was asked to provide a more detailed report, complete with cost estimates, to be
discussed at the next meeting of the Finance and Citywide Projects Committee (FCWPC).
Accordingly, on October 25th, the Administration verbally asked the Tenant to have its Architect
explore the possibility and cost associated with modifying its exhaust system to incorporate a
carbon filtration system to further mitigate any residual odors venting into the alley. A follow-up
request for the cost estimate was sent via email on October 29th. On November 1st, the tenant
informed the Administration that the Architect's quote on a filter system is being developed. On
November 5th, the Tenant informed us that the quote is anticipated by mid-week.
Staff is also working on conducting a peer review of Options 1 and 2 in order to determine their
respective viability and effectiveness as well as verify and possibly value-engineer the cost
estimates associated with each option. The analysis will also explore other available solutions, if
any, including, but not limited to, options for the New World Symphony to consider, such as the
installation of a commercial air curtain over its loading dock door.
By the November 9, 2012, FCWPC meeting, the Administration was unable to obtain and analyze
the cost estimates and most feasible remedies. Therefore, the FCWPC's recommendation was
that the Administration be authorized to proceed to negotiate an agreement with the Tenant to
proceed with the design, permitting, and construction of the most feasible remedy, in an amount
not to exceed $250,000, from the identified funding source.
RECOMMENDATION
In an effort to mitigate this situation, the Administration has identified savings from the original
construction budget of the Pennsylvania Avenue Garage (RDA Fund 365) that can be made
available to proceed with either Option. Given the fact that cost estimates to undertake the work
Pennsylvania Avenue Garage Exhaust Vent Relocation
Redevelopment Agency Memorandum
November 14, 2012
Page 4 of 4
are preliminary at best, the Administration recommends appropriating an amount not to exceed
$250,000 to provide the greatest amount of flexibility to remedy this issue in the most feasible
manner. The Administration also recommends that the City Commission authorize the Interim
Executive Director to negotiate an agreement with the Tenant to proceed with the design,
permitting and construction of the modifications, based on either Option 1 or 2.
KGB/ P/MP/KO
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