April 2017 FCWPCNEW BUSINESS
3. Discuss An Arrangement With Sabrina Cohen Foundation For The Construction
And Operation Of An Adaptive Fitness Center At A Portion Of The 53rd Street
Parking Lot With Direction To Staff To Do Outreach To The Buildings Immediately
Adjacent.
Commission Item C48, March 22, 2017
(Sponsored by Commissioner Malakoff)
John Rebar, Parks and Recreation Director
Status: Item enclosed.
4. Discussion Regarding A Potential Lease With The Venture City For Commercial
Space Located At 1661 Pennsylvania Avenue
Eva Silverstein, Tourism, Culture, and Economic Development Director
Status: Item enclosed.
DEFERRED ITEMS
5. Discussion Regarding Proposed Interceptor Garage At 1623 West Avenue (Lot No.
P23).
Commission Item R9E , September 27, 2016
(Parking)
Saul Frances, Parking Director
Status: Item deferred to the May 19, 2017 Finance and Citywide Projects
Committee meeting. The CIP Department received a preliminary concept design
and associated cost estimate from Desman, DCP (Design Criteria Professional) for
the proposed pedestrian bridge connecting the developer's parking garage to the
City's planned interceptor garage. Desman's estimates the pedestrian bridge to
cost $200,000 to $300,000. Crescent Heights is in possession of Desman's
preliminary concept design and estimated costs. The Developer communicated it
is evaluating the information.
6. Discuss Engaging In A Pilot Program With A Cost Reduction Consultant.
Commission Item C4N, March 1, 2017
(Sponsored by Commissioner Arriola)
James Sutter, Internal Auditor
John Woodruff, Chief Financial Officer
Status: Item deferred to the May 19, 2017 Finance and Citywide Projects
Committee meeting, pending coordination with several departments to identify
areas and cost reduction potential.
7. Discussion Regarding A Skate Park/Parking Structure At 72nd Street Parking Lot
(P92).
Commission Item C4B, February 8, 2017
(Tourism, Culture, and Economic Development)
Eva Silverstein , Tourism, Culture and Economic Development Director
Dual Referral: Mayor's North Beach Master Plan Steering Committee and Finance &
Citywide Projects Committee
Status: Item deferred to the May 19, 2017 Finance and Citywide Projects
Committee meeting, pending creation of drawings.
8. Discuss The Key Development Parameters For The Barclay Plaza Apartments
Workforce Housing Project.
Commission Item C4A, March 1, 2017
(Office of Housing and Community Services)
Maria Ruiz, Director of Housing and Community Services
Status: Item deferred to the May 19, 2017 Finance and Citywide Projects
Committee meeting, pending data and analysis.
9. Discussion Regarding Future Uses Or The Potential Sale Of Vacant City-Owned
Land Located At 226 87th Terrace .
Commission Item C4A, October 19, 2016
(Sponsored by Commissioner Grieco)
Eva Silverstein, Tourism, Culture and Economic Development Director
Status: Item deferred to the May 19, 2017 Finance and Citywide Projects
Committee meeting, so that the City's appraiser is available to discuss this item.
10. Discussion Regarding The Maintenance Of Public Bathrooms Citywide.
Commission Item C4N , February 8, 2017
(Sponsored by Commissioner Grieco)
John Rebar, Parks and Recreation Director
Adrian Morales, Property Management Director
Dual Referral : Neighborhood/Community Affairs Committee and Finance & Citywide
Projects Committee
Status: Item deferred pending direction from the Neighborhood and Community
Affairs Committee.
11. Discussion To Explore Placing Cameras On Every Corner Of The MXE (Mixed
Used Entertainment) District And On The Beachwalk, And Installing Emergency
Activation Boxes Along The Beachwalk.
Commission Item C4P, March 1, 2017
(Sponsored by Vice-Mayor Rosen Gonzalez)
Daniel Oates, Police Chief
Dual Referral: Neighborhood/Community Affairs Committee and Finance & Citywide
Projects Committee
Status: Item deferred pending direction from the Neighborhood and Community
Affairs Committee.
Finance and Citywide Projects Committee Meetings for 2017:
May 19
June 16 -FCWP and Budget Briefing
June 30 -Budget Briefing
July 10 -Budget Briefing
July 21 -Budget Briefing
July 28
August Recess
SeptemberS
October 13
November 3
December 8
Committee Members
Commissioner Ricky Arriola, Chair
Commissioner Joy Malakoff, Vice Chair
Commissioner John Aleman, Member
Commissioner Micky Steinberg, Alternate
John Woodruff, Committee Liaison
~
JW/MTG
To request this material in accessible format, sign language interpreters, information on access
for persons with disabilities, and/or any accommodation to review any document or participate in
any city-sponsored proceeding, please contact 305-604-2489 (voice), 305-673-7524 (fax) or
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(Florida Relay Service).
Cc. Mayor and Members of the City Commission
Management Team
• Improve Alliance with Key Business Sectors, Namely Hospitality, Arts, &
International Business with a Focus on Enhanced Culture, Entertainment, &
Tourism.
• Revitalize Key Neighborhoods, Starting with North Beach and Ocean Drive
Since the last modifications to the City's KIOs, adopted in July 2015, the local economy
has continued to change and evolve. Additional economic development goals and
objectives should be formulated that may lead to a more defined economic development
direction and new KIOs.
The most direct way to address this need would be through the creation of a city-wide
economic development strategy plan. Such an effort would utilize a review of: existing
businesses, existing commercial space in the City, and marketplace data and other
information along with input from the public, to explore what might be the best and most
suitable industries for the City to target. Additional activities under this effort could
include a strategy of potential methods to attract and retain these desired
businesses. These methods could include incentives, zoning modifications or bonuses,
and the identification or attraction of projects that might be eligible for grant funding from
agencies such as the U.S. Economic Development Administration.
Such a strategy plan would be best implemented through the use of an outside
consulting firm that could easily provide market and industry data and assist in
connecting the City to established industry leaders. Key industry experts could help to
define the most advantageous business types to attract given the City's economy,
workforce, commercial and office property inventory, and the regulatory environment in
the City, County, and State.
For these reasons, an item referring the creation of an economic development strategy
to the Finance and Citywide Projects Committee was made by the City Commission on
December 14, 2016.
Shortly after this meeting, the City's Chief Resiliency Officer (CRO) recommended that
this effort be reviewed for inclusion of resiliency-related efforts. Additionally, the CRO
further suggested that this effort might be enhanced by consultants from 100 Resilient
Cities ( 1 OORC), a non-profit organization pioneered by the Rockefeller Foundation which
assists cities around the world in becoming more resilient to physical, social, and
economic challenges to which the City, as part of a triumvirate with local partners Miami-
Dade County and the City of Miami, had recently become a member. At the December
16, 2016 Finance and Citywide Projects Committee (FCWPC) meeting, there was brief
discussion and full support of moving this item forward and reaching out to 1 OORC
before the item returned to the Committee. Additional discussion at the December
FCWPC meeting covered topics such as incorporating other components into a
comprehensive strategy such as transportation and housing.
A discussion was subsequently held with 1 OORC who agreed to provide assistance in
determining what might be included in an effort to create an economic development
strategy that would further the City's resiliency goals. To this end, 1 OORC offered 10
hours of assistance from Paul Peninger, a consultant with AECOM who has expertise in
urban planning and economics. Mr. Peninger provided to the City's Economic
Development Division Director a number of documents regarding economic
development strategies, economic development incentives, and directed attention to
documents from several other locales across the nation.
After working with Mr. Peninger, a draft RFP with a proposed Scope of Work was
prepared for City discussion (Attachment 1 ).
ANALYSIS
An early conclusion by Mr. Peninger, the 1 OORC consultant, was that diversification of
the business base was the only true resiliency tactic that is necessary in our economic
development strategy, but there may be an opportunity to work into the strategy a
program that educates business owners on resiliency issues in the City and to potentially
outline a program of incentives to assist businesses in becoming more resilient,
specifically citing a presentation made by the U.S. Economic Development
Administration titled "Resilience and Economic Development: Moving from Idea to
Action" (Attachment 2) as a guideline for the addition of these components. Mr.
Peninger and staff also considered the need for clear economic development goals and
objectives and other economic development related items.
After several conversations, Mr. Peninger provided a discussion draft for a Request for
Proposals to Design an Economic Development Strategy for Business Attraction and
Diversification for the City of Miami Beach, Florida. The draft scope includes tasks such
as:
• Meeting with City staff and stakeholders
• Economic base analysis and identification of targeted sectors
• Recommended incentives for business attraction to diversify the local economy
and an implementation plan
• A business retention and expansion strategy
• Economic resiliency strategy
• Overall economic development goals and objectives
All of the tasks are designed to move the City's economic development program forward
keeping in mind an effort to diversify the City's economic base, make the City economy
and business community resilient, and preparing goals and objectives.
After additional discussion with the City's Economic Development staff, this draft was
expanded to also include a task for an Economic Resiliency Strategy, slightly based on
the aforementioned U.S. Economic Development Administration presentation, which
would be dedicated towards identifying threats to the business community and include a
strategy for potential partnerships and identification of post-event recovery funding and
financing. A Business Retention and Expansion Strategy task was also included to
devise methods for the City to identify existing businesses that are at risk of leaving the
City or who need to expand and to devise a program to assist them. Lastly, in the scope
of work, a task to incorporate all of the findings from the study into clear economic
development goals and objectives for the City was added. The result of the
conversations with Mr. Peninger and the Economic Development Staff is the draft RFP
(Attachment 1 ). Mr. Peninger added that, as a result of his involvement as a 100 RC
consultant to the City, his firm would not respond to an RFP if the City proceeds. This
disclosure also allowed him to offer a recommendation that this project should have a
budget of $75,000.
At the December 16, 2016 Finance and Citywide Projects Committee meeting when this
was discussed, the Committee also discussed including other components into the
strategy such as transportation and housing. While these are important items and affect
the City's ability to attract and retain businesses, the City is currently examining these
issues through other studies and initiatives. To make them tasks in the scope of work
for this project might cause redundancy with other efforts. If such items are included in
this strategy, the scope should be limited to analysis of other efforts and the effect or
missing components of those efforts.
CONCLUSION:
Staff is seeks direction from the Committee as to whether to proceed with a citywide
economic development strategy, and if so, whether the Scope of Work in the attached
Draft RFP is acceptable. Should the Committee wish to proceed with the Scope of
Work as presented, it is recommended that direction be given for staff to submit a
budget enhancement request in the amount of $75,000 for the FY 2017/18 budget.
C: Kathie Brooks, Assistant City Manager
Susanne Torriente, Assistant City Manager/Chief Resiliency Officer
Eva Silverstein, Tourism, Culture and Economic Development Director
Jeffrey Oris, Economic Development Division Director
KGB/ES/JO
ATTACHMENT 1
DISCUSSION DRAFT -Request for Proposals to Design an Economic
Development Incentive Strategy for Business Attraction and
Diversification for the City of Miami Beach, Florida.
Introduction
The City of Miami Beach is seeking the assistance of a professional economic development consulting
firm to design an innovative economic development incentive strategy for the City in order to diversify
the local economy and, in doing so, build long-term economic resilience . The selected consultant will
work closely with local economic development staff and key stakeholders to design an incentive strategy
that leverages the City's core economic strengths, while identifying new areas for business attraction
and diversification .
Background
Situated on a barrier island and susceptible to both sea-level rise and flooding risks, Miami Beach is
currently a partner in the Rockefeller Foundation funded Resiliency Strategy for Greater Miami and the
Beaches (http:Uwww.lOOresilientcities.org/cities/entry/greater-miami -and -the-beaches -resilience -
challenge#/-/). The development of the this regional strategy will be taking place simultaneously to
this preparation of the economic development incentive strategy and the two processes will likely be
mutually informative and beneficial, allowing for the sharing of resources and knowledge to allow for
the design and implementation of an incentive strategy that is consistent with the Resiliency Strategy for
Greater Miami and the Beaches.
For the purposes of this RFP, the terms Resilience, Economic Development Incentives and Economic
Diversification are understood as follows:
Resilience is the ability to prepare for and adapt to changing conditions and withstand and recover
rapidly from disruptions. Resilience includes the ability to withstand and recover from deliberate attacks,
accidents, or naturally occurring threats or incidents. (US Economic Development Administration, 2015).
Economic Development Incentives are inducements-often in the form of financing, but sometimes in
the form of services-to persuade companies to build new structures, purchase equipment, design new
products, enter new markets, and above all, create new jobs in places where they would not have
otherwise . (International Economic Development Council, 2015)
Economic Diversification is the primary method for increasing resilience and ensuring that if some
industries are compromised, there may be others that can continue to drive economic activity. (US
Economic Development Administration, 2015).
DRAFT 4/12/2017 1
Scope of Work
Proposers should outline their approach and detailed methodology for completing the following core
elements of the scope of work for this project.
1. Meet with local economic development staff and stakeholders and establish process for
gathering ongoing feedback on Strategy process.
a. Create a comprehensive economic development outreach plan.
b. Consider establishing a working group to provide ongoing advice and support to staff
and consultants in the completion of this project.
2. Economic base analysis and identification of target economic development sectors.
a. Build on studies already completed at the State and regional levels.
b. Situate Miami Beach in the context of the overall metropolitan economy.
c. Identify existing core economic sectors as well as potential opportunities for growing
new export-oriented economic sectors to diversify the local economy.
d. Optional: SWOT analysis.
3. Best practice case studies of comparable jurisdictions with successful economic development
incentive programs geared towards increasing diversification.
a. 3-5 case studies building on the work ofthe EDA, IEDC and others.
4. Establish goals and objective for incentive program based on an understanding of strategic
economic opportunities.
5. Design Draft Incentives for Business Attraction to Diversify the local economy. Analyze the costs
and benefits of each of the potential incentives and provide a ranking of the actions that would
likely yield the most positive results. Types of incentives may include:
a. Financial incentives (e.g., tax abatements, grants or loans)
b. Regulatory incentives (e.g., flexible design standards for new construction that is built
with new or innovative climate change adaptation building technologies)
c. Other (e.g., technical assistance and training)
6. Prepare Final Incentives Strategy and Implementation Plan.
\
a. Define final list of incentives.
b. Establish roles, responsibilities and funding sources and timelines for implementation.
c. Define clear and measurable performance standards for each incentive.
d. Create a monitoring and compliance system for City staff to use in overseeing the
program
DRAFT 4/12/2017 2
7. Prepare a Business Retention and Expansion Strategy
a. Define ways for the City to identify businesses looking to expand within the City or at
risk of relocating outside of the City.
b. Formulate a list of actions the Economic Development Division can undertake to assist
businesses that are seeking to expand in the City or are at risk of relocating outside of
the City
8. Prepare an Economic Resiliency Strategy.
a. Identify potential threats to businesses within the City for which the City and businesses
should prepare
b. Identify stakeholders and other organizations for which coordination in any "shock to
the system" event (i.e. hurricane, sea level rise, terrorist act, major travel interruption)
is critical.
c. Recommend training or coordination programs for those stakeholders/organizations
identified in item b.
d. Identify potential training opportunities for the City to host to insure businesses prepare
for threats (i.e. creating business continuity plans, how to work with your insurance
company post event, information that is critical for post-event financing
9. Utilize Previous Tasks to Identify Clear Overall Goals and Objectives for the City's Economic
Development Program
Optional: Miami Beach Resiliency "Makers Lab" Feasibility Study. Perhaps more than any municipality
in the United States, Miami Beach is uniquely situated to provide an ideal urban laboratory for
businesses and entrepreneurs experimenting with the design and creation of new building technologies
and infrastructure systems (water, energy, transportation, etc.) for areas that are at high-risk of seas
level rise or flooding due to inundation. This optional task would explore the feasibility and costs and
benefits of structuring specific incentives for businesses in this business segment.
DRAFT 4/12/2017 3
ECONOMIC RESILIENCE TOOL: PLANNING
Planning identifies the integration of economic development plans into other
local, regional, and state planning activities. Planning in silos leaves the
economy exposed to gaps in planning or lack of collaboration. Integration of
various planning instruments is important, as well as evidence of broad
stakeholder support and engagement.
• References or identifies points of integration with other planning efforts in
the community (i.e., land use plans, hazard mitigation plans, etc.).
• Demonstrates participation in regional or state planning processes for
economic resilience as part of a separate economic planning initiative or
as part of mitigation or preparedness planning efforts.
• Exhibits evidence of broad or significant stakeholder engagement
(including Chambers of Commerce, industry organizations, workforce
groups, etc .).
• Provides evidence that vulnerable populations have been adequately
engaged and represented in plans.
• Tracks the extent to which plans have been implemented or active
projects have been initiated/completed.
ECONOMIC RESILIENCE TOOL: GOVERNANCE
Governance addresses the organizational structures in place to address
economic planning and recovery issues. This includes both government
agencies, as well as evidence of a viable non-profit sector to implement
relevant activities.
• Identifies an office or team tasked with managing economic incident
response and/or recovery.
• Demonstrates integration with other relevant regional, state, and federal
economic response and recovery entities.
• Includes or acknowledges the role of non-profit organizations, volunteer
organizations, community foundations, and non -traditional lenders to
support resiliency building and recovery efforts.
• Includes an assessment of community organizations and their ability to
manage and contribute to post -disaster recovery programming.
• Cultivates public-private partnerships to foster mutual support for
economic development goals.
• Identifies an office or team tasked with managing economic incident
response and/or recovery.
9
10
ECONOMIC RESILIENCE TOOL: WORKFORCE SUPPORT
Workforce Support includes programs focusing on training, placement services, and
community support. Ensuring that the workforce has flexible skill sets and their own
personal recovery plans will increase the ability of the workforce to weather changes
in the economy and be available for business needs.
•
•
•
•
Identifies programs for workforce education and skills training for a more flexible
and adaptable workforce.
Identifies labor agencies and similar firms that may be required to fill labor gaps
and reduce unemployment due to workforce displacement after a disaster or
other economic disruption
Promotes personal financial literacy, Individual Development Accounts, or other
programs to encourage savings and other practices for precarious workforce
members.
Promotes disaster preparedness and planning for households .
Accounts for the vulnerabilities posed to the workforce by transportation, schools
and other critical infrastructure outages.
• Has a program in place to educate employers on public and private resources
available to support workforce preparedness and post-disaster assistance.
ECONOMIC RESILIENCE TOOL: ECONOMIC DIVERSIFICATION
15
Economic Diversification is the primary method for increasing
resilience and ensuring that if some industries are
compromised, there may be others that can continue to drive
economic activity.
• Recognizes extent to which the local economy is dependent
on a single or few industries.
• Indicates activities or partnerships for attracting or
developing new industries.
• Considers the hazards posed by targeted growth industries
or existing economic drivers of the community.
• Considers the vulnerabilities or methods of risk avoidance
for key industry sectors.
16
NEW EDA CEDS Content Guidelines
CEDS CONTENT GUIDELINES
The new CEDS Content Guidelines are a collection of
suggestions and recommendations, not a list of
additional requirements ...
CEDS CONTENT GUIDELINES-ECONOMIC RESILIENCE
•
•
•
Steady-state initiatives: longer-term efforts that seek to bolster a
community's ability to withstand or prevent a shock
Responsive initiatives: establishing capabilities that allow an
organization/region to be responsive to region's recovery needs
following an incident
As a baseline, EDA suggests regions undertake a two-pronged
approach:
1) Implement specific goals or actions to bolster the long-term
economic durability of the region (steady-state)
2) Establish information networks among the various stakeholders in
the region to facilitate active and regular communications between
the public, private, education and non-profit sectors to collaborate
on existing and potential future challenges (responsive).
TAKEAWAYS
TAKEAWAYS
• Economic resilience is the process of reducing vulnerabilities and
increasing adaptive capacities in the local economy.
• Resilience is a form of economic development and can provide
material benefits for firms and local governments.
• Many resilience activities are incremental and relatively inexpensive
for local governments. Local governments can act as catalysts to
engage the private sector to improve the economy.
• Good planning is critical for resiliency. Investing into community
organizing, assessing the economy, and planning for programs or
initiatives builds the foundation for economic preservation and
growth.
GOOD RESOURCES-MEASURING
Community Resilience System
A set of tools developed by CARR I to help communities analyze and improve
their level of resilience. http://www.resilientus.org/
Building Code Effectiveness Grading Schedule {BCEGS}
29
The Insurance Services Offices (ISO) administers the BCEGS to assess building
codes and building code enforcement in municipalities which highlights
vulnerability in the built environment.
http:(/www.isomitigation.com/bcegs/OOOO/bcegsOOOl.html
HAZUS-FEMA
A national model for estimating potential disaster losses.
http://www.fema.gov/hazus-software
Bureau of labor Statistics (www.bls.gov) provides extensive county-level data
on various economic factors.
StatsAmerica (www.statsamerica.org) provides side-by-side comparisons, plus
innovation metrics and distress indicators
EDA's Custer Mapping project (www.clustermapping.us) provides data on
industry sectors for different geographic scales . 30
Exhibit "B"
Draft Term Sheet for the Collaboration and Funding Agreement
FOR DISCUSSION PURPOSES ONLY
SUBJECT TO CITY COMMISSION REVIEW AND INPUT
Draft Collaboration/Funding Agreement, Sabrina Cohen Foundation
April 7 , 2017
DRAFT TERM SHEET
COLLABORATION AND FUNDING AGREEMENT
BETWEEN THE CITY OF MIAMI BEACH (CITY) AND
THE SABRINA COHEN FOUNDATION, INC. (THE FOUNDATION)
BACKGROUND
1. The City is the owner of certain real property located at and around 5300 Collins Avenue ,
which includes City Fire Station 3, the parking lot areas east and south of Fire Station 3, Beach View
Park and associated facilities.
2. In an effort to provide enhanced recreational programming at Beach View Park and greater
access to the City's beaches, the City desires to expand the footprint available for Beach View Park
facilities, without reducing any existing park greenspace. In furtherance thereof, the City desires to
repurpose a portion of the existing surface parking lot area described more fully in Section 1 below,
to pr:ovide e)~panded park,s and recreation servic,es to the public, includi[lg persor:~s livir:~g with
ph~sical anCI .:; ognitive dis·abilities, seniors, and ab;le-bqdied individuals with temporary injuries ..
lli .
3. The Fo ~ndation iS[a not-for-Rrofit corporation 0fthe State of Florida, and an exempt 501(c)3
organization entitlea to solicit and accept donations in the State offlqrida for charitable ~P urposes .
The Foundation .currently· operates a successful adaptiv.e beach day program within fhe1 City of
Miaml Beach , witb accessible beach programmi ng at or near Beaoh View Park.
~ :!
4. ~ , In view o' the lirT;Ji1ted funding availati)le to th~ City to Sl!J,p,port its City-wide parks and
re cleational needs, the Foundation desires to ~ollaborate with the Oiw to fund the City's ccmstruction
of a "City-owned recreatiomal facilitY~ wklich, o rtce constructed, will Be used in accordanc'e with this
Agreement for the purp d'ses speciJied herein and which are intended primarily to li)rovide an
accessible access point t<D the beacH, and beach programming, for persons living with pHysical and
cogJnifi'ile disabi it1es, seniors, and able-bodied individuals '\V ith temporary injuries. •' 1 ' 'liA ,,
NOW THEREFORE, the City and the Foundation agree as follows:
1. PREMISES I FACILITY
1.1. The Premises shall consist of approximately square feet of land east of
5300 Collins Avenue, as approximately depicted in the site plan set forth in Exhibit 1 hereto, with up
to_ sq. ft. available for the construction of a City-owned building with a maximum height of_ ft.
(the "City Facility"). The City Facility shall be developed and used by the City (and any entities
contracting through the City for the management and operation thereof) as provided for in Section 3.
2. COLLABORATION FOR DEVELOPMENT OF ADAPTIVE RECREATION CENTER
2.1. The Foundation agrees to solicit contributions and grant funds to cover the costs of
development, design and construction of the City Facility, including furniture, fixtures and equipment
("Project Costs"). The parties shall jointly develop the estimated budget for Project Costs, and
anticipate that donor/grant funds will be sufficient to cover the Project Costs.
Exhibit "8"
Draft Term Sheet for the Collaboration and Funding Agreement
FOR DISCUSSION PURPOSES ONLY
SUBJECT TO CITY COMMISSION REVIEW AND INPUT
Draft Collaboration/Funding Agreement, Sabrina Cohen Foundation
April 7, 2017
(2) the Foundation has evidenced to the City that has it has received total donation pledges
or grant commitments in an amount sufficient to cover the remaining Project Costs, and that
such pledges and commitments are anticipated to be fulfilled within _ months following
execution of the agreement between City and the architecUengineer; and
(3) any naming rights associated with donations or grants are approved pursuant to Section
4 herein and the City's Naming Ordinance.
[In addition to general concepts above, City and Foundation to identify milestones;
specific dollars raised to trigger procurement/development actions]
5.4. The City shall not enter into a binding agreement with a construction contractor for
the City Facility until such time as the Foundation transfers the funds sufficient to cover the total
estimated construction costs, and any naming rights associated with such donations are approved
pursuant to Section 4 herein and the City's Naming Ordinance.
' ~ ' ",p' !,•~•,,' :' .(' ,~~~'-
5.5. The Found13fon agrees to provide and pay for the initial cori0ept~fien'de ring fm the
City Facility for the City's •f Onsideration. The FowRd'ation further ~flrees to provide Cit~ with input
witln respect to design d ~velopment, particularlY. wit~ respect to ~i'~pects of the desigrrt tliat may
enmance the use o f, the Gity Facility for its intenitled purposes. All ,design documents, 11Dians and
specifications shall be su~ject to City's final appf~\tal, and pursuant to all applicable go\temmental
requirements , including lie ·gulatery approval by tlfle Design Review Board .. and agencies having
jurisdiction over t b'·e City F.-acility. w. "
f; fp,
5.6. As part cif the design development.· process, · the City shall require the
arcfiitecUengineer to prov\.qe an updated estimate of the c0 structio.n posts, and the estim13-te of total
Project Costs shall be adjusted accordingly. In the even•t the est·mates to design/coqstruct the
Fac:ility exceed available f.unds, or in' the even cost overruns with respect to the Project C<Dsts are
anticipated, the City and ~~he Founda~ion sln,;311 work together to either identify additional funds or
adjust the project scope, a'S necessary. Except for the expenditure of the funds received from the
Foundation for the City Facility, City shall have no obligation to expend any funds to design,
construct or equip the City Facility.
5.7. In the event the City Facility and related improvements are developed, designed and
constructed for less than the amounts contributed by the Foundation for Project Costs, then any
unused funds shall be returned to the Foundation.
5.8. [City to confirm: Subject to Foundation's contribution to the City of the Project
Costs, the City, at its sole cost and expense, agrees to modify a portion of the existing Beach View
Park for the purpose of creating an adaptive beach path that provides access to the beach.]
6. TERM
The term of this Agreement (Term) shall commence upon execution of this Agreement by all parties
hereto, and shall continue thereafter for a period of _ years, unless earlier terminated in
accordance with this Agreement.
4
Exhibit "B"
Draft Term Sheet for the Collaboration and Funding Agreement
FOR DISCUSSION PURPOSES ONLY
SUBJECT TO CITY COMMISSION REVIEW AND INPUT
Draft Collaboration/Funding Agreement, Sabrina Cohen Foundation
April 7, 2017
contained in this document. Title and paragraph headings are for convenient reference and are not
intended to confer any rights or obligations upon the parties to this Agreement.
10
(Overtown) that are strongly attributed with boosting the Miami area's credibility
as a technology hub in the global community.
Representatives of the Beacon Council have also indicated that their support of
The Venture City is also due to the fact that Ms. Gonzales-Estefani and the other
members of the business' founding team are well-known in Miami-Dade
technology circles and well-positioned internationally.
At the initial meeting with Staff, representatives of The Venture City shared their
business plan (Attached) and inquired into what city-owned space may be
available for their use and further indicated they were seeking rent-free space to
facilitate their business model. Staff indicated the City is quite limited in the space
that is appropriate for such a use. The log cabin site in North Beach and the
former Oolite restaurant space in City Center were suggested as potential
locations.
Further analysis showed the log cabin site to be significantly smaller than what
The Venture City was seeking however, the group expressed interest in the
former Oolite site at 1661 Pennsylvania Avenue. (As a point of information, the
City began marketing the Oolite in March 2017 and has only received one inquiry
as of the writing of this memorandum.)
The Venture City has proposed occupying this space on a two-year, rent-free
basis. While they request the space rent-free, they have agreed to pay for any
necessary build-out of the space and will pay any property taxes that may be
assessed against the site should the Property Appraiser deem the site taxable
due to its loss as a municipal use or vacant municipally owned space.
As mentioned, the basis for the request of free rent is as an economic
development incentive to the group to locate in the City. Potentially, companies
that will locate at the facility as part of The Venture City's incubator/accelerator
will employ between 30-100 staff on-site, with these employees garnering a
higher wage than would be expected from other area businesses. It is also
assumed that the employees and businesses housed on-site will utilize other
businesses in the City for supplies and services as well as patronize retail
establishments, having a positive effect on the City's overall economy. Further,
there is an expectation that as businesses graduate from the incubator or
accelerator programs, they would remain in the City, close to resources that will
remain available to them through The Venture City, and that the presence of this
facility will attract additional high-paying technology companies. All of this is also
presumed to help retain and attract those with desired and valuable technology-
related skills to the City and to the broader Miami area.
COST
Cost to the City if we were to proceed with this request would be the opportunity
cost of lost revenue from the space if the City were to find a paying tenant for the
space. It would be anticipated that the space would be otherwise rented at a rate
of approximately $60 per square foot, resulting in annual rent payments of
approximately $390,000 or $780,000 over the two-year period of the lease. It
should also be noted that this space may command a higher lease rate once the
Convention Center reopens due to its proximity to the facility and the increased
foot traffic due to a new booking policy prioritizing conventions over consumer
shows.
CONCLUSION
Administration seeks direction on how to proceed with this request. Options for
consideration include:
1) Granting The Venture City's request for a two-year, rent-free lease for
6,500 square feet of City-owned commercial space.
2) The City can propose an altered term of the lease.
3) The Venture City can be asked to pay a sliding-scale rent, the full rent,
or some other subsidized rent rate.
4) The Committee can request putting the site out to an RFP for other
similar users who may want to utilize the space, opening the
opportunity up to a larger market.
5) The City can reject the offer and continue to market the property in an
effort to find another user that will pay a market-rate rent.
C: Kathie Brooks, Assistant City Manager
John Woodruff, Finance Director
Eva Silverstein, Tourism, Culture and Economic Development Director
Jeffrey Oris, Economic Development Division Director
Mark Milisits, Asset Manager
K~/ES/JO
Factory
INCUBATOR PROGRAM
• Welco ming 20 companies each year, for 3 years under a
vesting model. taking a max of 25% company's stake .
• Core team always available to advice on tactics to
Build/Grow/internationalize/Monetize, advice on
engineering , product or Policy/legal issues .
• Ambassador program between o ur g lobal offices
• Office space available for portfolio in Miami and Madrid
t o start
-~,Ct?~**A ~~~
Factory
ACCELERATOR PR O GRAM
• Investing in 1 0 companies each year. for 1 0% equity
for 18 months under a vesting model
• Core team a lways available to advice on tactics to
Bu ild/Grow/internationalize/Monetize. advice on
engineering , p roduct or Po licy/legal issues .
• Consultancy for Startups on Financing/alternatives,
that are not on early stage .
• Ambassador p rogram between our global offices
•
•
•
•
•
Town Hall
legal&policy
Lead and Build key relationsh ips with Governments,
institutions and business organizations
Advice our startups on Policy and legal risks .
Invite key personalities to Campuses and organize
Key events with Institutions .
Work closely with University on the Trainings and
programs needed to educate
Laboratory/
Product &
Engineering
Best in class team of engin eers that will advice CTO/
CPO & teams of our startups around their product. infra,
data analytics, etc. to make sure they grow and scale
efficiently
• Design working frameworks and processes for the
startups we are invested to maximize resources
• Advice and lead the Tech due diligence for our
investments
• Travel around the world to the key Startup Forums
explaining their framework and keys to succeed
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