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96-22032 RESO IncompleteRESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY L' OF MIAMI BEACH, FLORIDA, APPROVING A GRANT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE U.S. GOVERNMENT'S ECONOMIC DEVELOPMENT ADMINISTRATION (EDA), FOR A ONE MILLION AND FORTY THOUSAND DOLLAR ($1,040,000) GRANT FOR THE PURPOSE OF RENOVATING, EXPANDING AND IMPROVING THE 10TH STREET AUDITORIUM LOCATED ON OCEAN DRIVE AND 10TH STREET. WHEREAS, on May 15, 1996, the City Administration of the City of Miami Beach, Florida, received notice from the U.S. Government's Economic Development Administration, that a grant application in the amount of one million and forty thousand dollars ($1,040,000) had been approved for the renovation, expansion and improvement of the 10th Street Auditorium; and WHEREAS, acceptance of said grant requires a matching commitment from the City in the amount of One Million Two Hundred and Nine Thousand Dollars ($1,209,000); and WHEREAS, acceptance of said grant will enhance the capacity and use of the 10th Street Auditorium by the community and hotels located in the City's Historic Distric; WHEREAS, the renovation and expansion of the 10th Street Auditorium will provide much needed short and long-term employment opportunities for area residents. NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Clerk are authorized to execute the attached Grant Agreement between the City of Miami Beach, Florida and the U.S. Government's Economic Development Administration for One Million and Forty Thousand Dollars ($1,040,000) to undertake the renovation, expansion and improvement of the 10th Street Auditorium. PASSED and ADOPTED this ATTEST: CITY CLERK day of , 1996. MAYOR FORM APF ' -.D LEGAL DFF . 9y _41 Date 6-/%-26 FORM CD -"50 (REV. 10-93) DA0 203-26 U.S. DEPARTMENT OF COMMERCE FINANCIAL ASSISTANCE AWARD RECIPIENT NAME City of Miami Beach 1700 Convention Center Drive CITY, STATE, ZIP CODE Miami Beach, Florida 33139 STREET ADDRESS AWARD PERIOD From date of approval to 16 months after approval DEPARTMENT OF COMMERCE OPERATING UNIT Economic Development Administration AUTHORITY Public Works and Economic Development Act of 1965, as amended PROJECT TITLE Renovation of the 11,884 sq.ft. 10th Street auditorium building. ® GRANT 0 COOPERATIVE AGREEMENT ACCOUNTING CODE AWARD NUMBER 04-11-04162 FEDERAL SHARE OF COST $1,040,000 RECIPIENT SHARE OF COST $1,209,000 TOTAL ESTIMATED COST $2,249,000 This Award approved by the Grants Officer is issued in triplicate and constitutes an obligation of Federal funding. By signing the three documents, the Recipient agrees to comply with the Award provisions checked below and attached. Upon acceptance by the Recipient, two signed Award documents shall be returned to the Grants Officer and the third document shall be retained by the Recipient. If not signed and returned by the Recipient within 15 days of receipt, the Grants Officer may declare this Award null and void. EDA Standard Terms and Conditions --Construction Program, dated July 1995 ® Special Award Conditions • Line Item Budget • 15 CFR Part 24, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments ® OMB Circular A-87, Cost Principles for State and Local Governments ® 15 CFR Part 29a, Audit Requirements for State and Local Governments ❑ QMB Qircular A-1,10, Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations Uniform Administrative equirements O OMB Circular A-122, Cost Principles for Nonprofit Organizations ❑ OMB Circular A-21, Cost Principles for Educational Institutions O 15 CFR Part 29b, Audit Requirements for Institutions of Higher Education and Other Nonprofit Organizations • 48 CFR Part 31, Contract Cost Principles and Procedures O Other(s): _ SIGNATURE OF ARTMENT OF COMMERCE GRANTS OFFICER TITLE Director, Atlanta Region TYPED E AND SIGNATURE OFA T' •RIZ R. IPIENT OFFICIAL City of Miami Beach, Florida o (,wt Seym ur Ge yer, Mayor Robert Parcher, City Clerk DATE DATE INTERLOCAL COOPERATION AGREEMENT THIS INTERLOCAL COOPERATION AGREEMENT, made this day of , 1996 (the "Agreement"), by and between Metropolitan Dade County, a political subdivision of the State of Florida (the "County"), and the City of Miami Beach, a municipal corporation organized under the laws of the State of Florida (the "City"), regarding the disposition of the two thirds (2/3) portion of the Convention Development Tax as defined in this Agreement, for a term commencing upon the execution of this Agreement by the last party and ending on March 31, 2026 (the "Term"). WITNESSETH: WHEREAS, the County and the City previously entered into interlocal agreements regarding the use and disposition of the two thirds (2/3) portion ("Two Thirds Portion") of the tax imposed by the County on the exercise within its boundaries of the taxable privilege of leasing or letting transient rental accommodations at the rate of three percent (3%) of the total consideration charged for such accommodations, authorized pursuant to Section 212.0305(4)(b), Florida Statutes, and imposed pursuant to the County Code and Ordinances ("Convention Development Tax"); and WHEREAS, by Resolution No. the Board of County Commissioners (the "Board") has approved certain business terms agreed to by the County Manager and the City ti 1 Manager related to the funding of the Performing Arts Center (the "PAC") and the use of the Two Thirds Portion; and WHEREAS, by Resolution No. the Mayor and City Commission of the City of Miami Beach (the "Commission") approved the same business terms; and WHEREAS, the business terms approved by the Board and the Commission are to be incorporated into this Agreement; and WHEREAS, in furtherance of its commitment to the County, the City has remitted to the County $11.5 million from Convention Center Funds; NOW, THEREFORE, the County and the City agree as follows: I. DISPOSITION OF THE TWO THIRDS PORTION A. The Dade County, Florida Special Obligation and Refunding Bonds (Miami Beach Convention Center Project) Series 1987A and the Dade County, Florida Special Obligation Bonds (Miami Beach Convention Center Project) Series 1987B issued by the County (the "County Bonds"), the Miami Beach, Florida Subordinate Special Obligation Bonds, Series 1989 issued by the City of Miami Beach (the "City Bonds") and the Homestead Convention Development Tax Revenue Certificates, Series 1989 issued by the City of Homestead (the "Homestead Certificates") shall be refunded and defeased through the issuance of tax exempt and taxable bonds by the County (the "Refunding Bonds") which Refunding Bonds shall have a first lien on the Two Thirds Portion. To accomplish the defeasance of the City Bonds and the Homestead Certificates, the County shall make a grant of bond proceeds from the Refunded 2 Bonds to the City and the City of Homestead, respectively. B. The County shall issue additional bonds in the amount of $46.5 million on July 1, 1996, secured by a first lien on the Two Thirds Portion on a parity with the Refunding Bonds in order to make a grant to the City which shall use the grant to fund the cost of additional capital improvements to the Miami Beach Convention Center and the Theatre of Performing Arts ("TOPA") ("Improvement Bonds"). C. The County may also issue bonds on a parity with the Refunding Bonds and Improvement Bonds to fund the cost of a new performing arts center to be located in the vicinity of Biscayne Boulevard and N.E. 13 Street in the City of Miami (the "Performing Arts Center Bonds"). D. For as long as the collected Convention Development Taxes are equal to or greater than ninety percent (90%) of the projected Convention Development Taxes in the feasibility study included in the Official Statement pertaining to any Performing Arts Center Bonds, the City shall receive the following payments from the Two Thirds Portion after the payment of debt service by the County on the Refunded Bonds, the Improvement Bonds and the Performing Arts Center Bonds secured by the Two Thirds Portion: 1. An operational subsidy (cost of operation and maintenance) for the Miami Beach Convention Center Complex (Miami Beach Convention Center and TOPA ) of $1.5 million per year commencing on April 1, 1996 and ending on March 31, 2002. 2. $1.1 million per year as capital replacement funds (which amount may be reduced to $1 million per year commencing on April 1, 2013 after conferring with the County) plus the actual cash operating deficit for operating and maintaining the Miami Beach 3 Convention Center Complex provided, however, that both the subsidy in paragraph 1 and the capital replacement found in this paragraph 2, in the aggregate shall not exceed $4.5 million per year commencing on April 1, 2002 and ending on March 31, 2026. 3. In the event that actual collections of Convention Development Taxes do not equal ninety percent (90%) of the projections described above, the County shall pay to the City all available Two Thirds Portion after making debt service payments on the Refunding Bonds, Improvements Bonds and the Performing Arts Center Bonds, in order to satisfy the requirements of the preceding subparagraphs 1. and 2. 4. An amount determined in accordance with Section 212.0305, Florida Statutes, as amended or its successors after the Term provided, however, that the preceding paragraphs 1., 2. and 3. shall not be applicable if either (a) the construction of the Performing Arts Center Project or (b) the issuance of the Performing Arts Center Bonds does not occur by March 31, 2001 or if the County abandons the Performing Arts Center Project earlier than March 31, 2001. In either case, the Two Thirds Portion shall be disbursed after the payment of debt service on the Refunding Bonds, the Improvement Bonds, and the Performing Arts Center Bonds as follows: (i) Up to $4.5 million per year to the City for operating deficits for operating and maintaining the Miami Beach Convention Center Complex; and (ii) For the purposes permitted by Section 212.0305, Florida Statutes, as amended or its successors. 4 E. Tax Collector All collections of the Two Thirds Portion shall be collected by the County's Tax Collector pursuant to Article VI of Chapter 29 of the Dade County Code, as amended, and paid to the County for disbursement by the County in the manner required by this Section I. II. CITY RESPONSIBILITIES AND OBLIGATIONS A. CONVENTION DEVELOPMENT TAX FUNDS 1. The City shall use reasonable efforts in assisting the County in the defeasance and refunding of the County Bonds, the City Bonds and the Homestead Certificates. 2. The City shall use reasonable efforts to maximize its revenues and minimize its expenses in accordance with generally -accepted industry practices and shall operate the Miami Beach Convention Center Complex in a cost efficient manner so as to minimize the operating cash deficit consistent with the maintenance of the quality of the Complex. 3. The City shall amend the City of Miami Beach Excess City Portion Resolution 92-20499 consistent with this Interlocal Cooperation Agreement. B. REGIONAL LIBRARY The City shall fund, construct and equip a Regional Library on City land which shall be constructed in accordance with the design requirements of the Metro -Dade County Library System attached to this Agreement as Exhibit A. 5 C. AUDIT REQUIREMENTS 1. The City shall provide for an independent financial audit and report of all related accounts, books and records, including supporting documentation related to the Convention Center Complex for each fiscal year of the City which is October 1 to September 30 ("Fiscal Year"). The City shall provide a copy of the audit and report to the County on an annual basis. The County shall have the right, without limitation, but not the obligation, to separately audit all accounts, books and records, and the supporting documentation related to the Miami Beach Convention Center Complex during its operating phase. Such auditor may be engaged to investigate, inspect and review the operations, activities and performance of the City in connection with this Agreement. The County shall be responsible for the cost of any separate audits performed at its request. The City shall use its best efforts in assisting the auditor in its duties. 2. Nothing in this Agreement shall impair the County's existing rights to audit or to investigate past, current and future acts. Any rights that the County has under this section shall not be the basis for any liability to the County either from the City or third parties for such investigation or for the failure to have conducted such investigation. III. COUNTY OBLIGATIONS AND RESPONSIBILITIES A. CONVENTION DEVELOPMENT TAX 1. The County shall issue the Refunding Bonds and Convention Center Bonds and shall use the proceeds to make (a) a grant to the City in the amount of $46.5 million for capital improvements to the Miami Beach Convention Center Complex and (b) a grant to the City in an amount which will be sufficient to defease the City Bonds. 6 2. The County shall construct a Performing Arts Center in the vicinity of Biscayne Boulevard and N.E. 13 Street, such Performing Arts Center to consist of, at minimum, a Concert Hall suitable for performances of a symphony orchestra and a Performance Hall suitable for performances of an Opera Company or a Ballet Troupe. 3. The City shall have the right, but not the obligation, to separately audit all accounts, books and records, and the supporting documentation related to the Convention Development Tax and the construction of the Performing Arts Center during the term of this Agreement. Such auditor may be engaged to investigate, inspect and review the operations, and activities of the County in connection with this Agreement. The City shall be responsible for the cost of any separate audits performed at its request. The County shall use its best efforts in assisting the auditor in its duties. 4. The County shall remit to the City that portion of the Two Thirds Portion required by Article I.D of this Agreement. B. REGIONAL LIBRARY The County shall operate and maintain at its expense the Regional Library constructed by the City in Miami Beach. C. ELECTRIC SHUTTLE The County shall permit the City's electric shuttle for a "park and ride" program in South Beach. 7 IV. MUTUAL OBLIGATIONS AND RESPONSIBILITIES A. SOUTH POINTE REDEVELOPMENT DISTRICT 1. The life of the South Pointe Redevelopment District shall be extended twelve (12) years until the year 2016 as provided in Chapter 163, Part III, Florida Statutes. 2. The City shall receive all tax increment revenue growth in the South Pointe Redevelopment District for the life of the District, including the twelve (12) year extension. B. CITY CENTER 1. The County and City agree that the City shall receive all tax -increment revenue growth in the City Center Redevelopment District for the life of the District. 2. The City and County agree to amend the City Center Redevelopment Plan to include the Miami Beach Convention Center Complex and related projects in accordance with Section 163.361, Florida Statutes, and any other applicable provisions of Florida law. 3. The County shall approve and the City shall issue the Tax Increment Revenue Bonds for the City Center Redevelopment Area. 8 C. PRIOR INTERLOCAL AGREEMENTS This Agreement supersedes the Interlocal Agreement dated as of November 1, 1983, as supplemented and amended, between the County and the City, the Interlocal Agreement dated as of October 12, 1987, between the County and the City, and any other agreements and resolutions between the County and the City regarding the Two Thirds Portion. V. TERMINATION PROVISIONS The City and the County shall be relieved of any further obligations under this Agreement if either (a) the construction of the Performing Arts Center Project or (b) the related issuance of the Performing Arts Center Bonds does not occur prior to March 31, 2001 or (c) if the County abandons the Performing Arts Center Project prior to that time. In the event that this Agreement ends on or before March 31, 2001, the County shall receive the difference between $35 million (or such lesser amount which shall be determined by subtracting $11.5 million from the amount provided to the City) and the Convention Development Tax monies the City would have received for operating cash deficit payments of $4.5 million per year for the period from April 1, 1996 and ending on March 31, 2001. VI. ENTIRE AGREEMENT This Agreement and its attachments constitute the sole and only Agreement of the parties with respect to the Two Thirds Portion and correctly sets forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. 9 VII. AMENDMENTS No amendments to this Agreement shall be binding on either party unless in writing and signed by both parties. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers and marked by their official seals, all as of the day and year first above -written. CITY OF MIAMI BEACH, a municipal corporation under the laws of the State of Florida Seymour Gelber Mayor WITNESSES: METROPOLITAN DADE COUNTY, a political subdivision of the State of Florida Armando Vidal, P.E. County Manager Robert Parcher, City Clerk Harvey Ruvin, Clerk of the Board APPROVED AS TO FORM AND APPROVED AS TO FORM AND LEGAL SUFFICIENCY: LEGAL SUFFICIENCY: Murray Dubb. City Attorney 10 Robert A. Ginsburg County Attorney CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM NO. 3'71- TO: '7I- TO: Mayor Seymour Gelber and Members of the City Commission FROM: Jose Garcia -Pedrosa City Manager SUBJECT: DATE: June 19, 1996 A RESOLUTIOI ACCEPTING THE U.S. GOVERNMENT'S ECONOMIC DEVELOPMENT ADMINISTRATION GRANT IN THE AMOUNT OF $1,040,000 FOR THE RENOVATION OF THE 10TH STREET AUDITORIUM; AND AUTHORIZATION FOR THE MAYOR AND CITY CLERK TO EXECUTE ALL NECESSARY DOCUMENTS, COMMITMENT OF LOCAL MATCH DOLLARS OF UP TO $1,209,000 FROM ANY AVAILABLE SOURCE AND AUTHORIZATION TO PROCEED WITH ARCHITECTURAL DRAWINGS BY THE FIRM OF STA ARCHITECTURAL GROUP, INC. ADMINISTRATION RECOMMENDATION: It is recommended that the Mayor and City Commission of the City of Miami Beach, give direction to the Administration as to whether or not the City should proceed with the execution of the contract with the Economic Development Administration (EDA) and all other necessary actions to effectuate a grant award in the amount of $1,040,000 to undertake the conversion of the 10th Street Auditorium including allocation of funds for the City's matching requirements in the amount of $1,209,000. BACKGROUND On March 19, 1993, the City of Miami Beach submitted a pre -application for a Title IX SSED funding to the Economic Development Administration (EDA) in the amount of $1.3 million, for the renovation and conversion of the 10th Street Auditorium into a shared conference facility for the hotels in the Art Deco District. The Title IX funds were specifically earmarked as part of President Clinton's economic stimulus package in the wake of Hurricane Andrew. The funding was very competitive and was aimed primarily at areas of Dade County south of Kendall Drive. Over the next two years, Sylvester Lukis, the City's former representative in Washington D.C., monitored this grant process and had made numerous efforts to include Miami Beach's application in a federal funding cycle. In early 1995, the City of Miami Beach was advised that in order to continue to be considered for funding, the grant request must be resubmitted through the Title I - Public Works and Development Facilities Assistance Program. This program allowed us to apply for 80 percent of the project cost and required a local commitment of the remaining 20 percent. As AGENDA ITEM 325 DATE R'1 F a basis for preparing the application, the City used a report prepared by KPMG, Peat Marwick in November, 1993, which contained conceptual conversion plans and an estimate of $5 million to undertake the project. As part of the application, the City was also required to document the selection process for an architect as well submit an architectural/engineering report concerning the project. Todd Tragash of STA Architectural Group, Inc., under contract with the Ocean Drive Association at the time, prepared an architectural report which was also included in the application. A copy of this report is included with this memorandum. The report included a revised cost estimate based upon a scaled down project from Peat Marwick's concept. The revised cost of $2,010,000 was used as a basis for submitting a project cost estimate of $2,249,000. A copy of this budget is also included with this memorandum. Under the terms of the grant application, we were required to provide EDA with a funding commitment for the balance ($260,000) of the original grant request, plus any overruns. As such, since the project cost estimate submitted was $2,249,000, the City had to come up with the balance of $1,209,000. The City issued a letter of commitment attesting to the availability of Resort Tax funds and Convention Center funds for this amount. Concurrent with the EDA application process, the City was to have engaged an architectural firm to proceed with the design of the project, so that construction could begin within four months of receiving the grant award. A City Commission Memorandum prepared for the Commission meeting of May 17, 1995, recommended the selection of STA Architectural Group, Inc., following a Selection Committee process. The City Commission however elected to postpone the award of the contract until the City had a firmer commitment of funding from EDA. ANALYSIS On May 15, 1996, the Administration received notice that the grant application in the amount of $1,040,000 had been approved by EDA. This approval, however, was contingent upon returning the signed contract to the EDA by May 15, or two weeks from the approval letter dated May 1, 1996. Due to the lateness in receiving the letter, and since more than a year has transpired since we submitted the application, we were able to obtain an extension from EDA to June 21, 1996, in order to execute the contract. (See attached letters from EDA.) This narrow time frame gives us a small window to consider and address the following ramifications associated with accepting this grant: 1. The grant was received on the basis of the facility being renovated and functioning as a conference center for the Ocean Drive hotels, as well as meeting community needs. EDA was favorable to the grant because it would create permanent as well as construction related jobs. The conference center concept raised controversy in the community and particularly with TCCEA, the Convention Center Advisory Board and the Miami Beach Hotel Association because it was deemed to compete against other hotels as well as the Convention Center. Additionally, the City Attorney ruled that as a conference center, it would change the use from park -related to private, necessitating a referendum. 326 2. As currently structured, the City's overall exposure in the project is $1,209,000 or 20% of the original application amount ($1.3 million) plus the balance of the estimated project cost not covered by the EDA Grant. Since Municipal Resort Tax and/or Convention Center funds are not available, the Administration feels that two funding sources could be made available. On the public side, the source would be the $35 million from the recent City/County agreement. On the private side, discussions have been held with Don Meginley of the Ocean Drive Association, who has indicated that the Association may be able to assist with matching funds to the City's. A meeting of the Ocean Drive Association has been scheduled for June 18, 1996, at which point a commitment will be sought for their share of the funding. 3. The contract obliges us to begin construction within four months from the date of the award letter of May 1, 1996, now extended to June 21, 1996, and a completion date within 12 months of beginning construction. The above facts show a rather daunting schedule in order to retain the grant. The lack of response from EDA for over a year and the back and forth for the two years prior really caused everyone on this end to believe that the grant was dead. When it literally fell out of the sky this May, it caught everyone by surprise. The Administration believes that renovation of the auditorium as a community facility is important, and that we must make every effort possible to obtain the $1,040,000 grant. The scope and scale of the project (see attached excerpts from the KPMG report and drawings) may need to be downscaled, more in line with the initial application in 1993, of a $1.3 million project, due to the need for matching funds, particularly if the business area provides no local match. The Administration recently presented the issue to TCCEA. Initially, TCCEA was not supportive of funding the local match due to the uncertainty of the federal grant. At the recent meeting, TCCEA did not take a position due to the fact that their funding is no longer involved. POSSIBLE ACTIONS: 1. The EDA imposed deadline of June 21, 1996 requires that the Commission to take action. There is no time to refer the issue to any additional Boards and Committees. The issue has already been heard by TCCEA and discussed at the Capital Improvements and Finance Committee meeting held on June 11, 1996. The direction from the Committee, in the form of a motion, was to refer the issue to the next meeting of the full Commission, and to have the Administration prepare a list of options for pursuing the grant award. The Committee further recommended that all concerned parties be present at the Commission Meeting. As such, if there is consensus to proceed with the grant as originally submitted, the Commission should: 327 (a) Authorize the Mayor and City Clerk to execute the grant documents immediately. (b) Authorize the commitment of up to $1,209,000 from the $35 million fund for the local match. (c) Authorize the awarding of a contract with STA Architects, as the top-ranked firm in the original selection committee process. 2. If the Commission is not comfortable with proceeding with this approach, but has a consensus on another direction, the Administration will pursue necessary extensions with EDA and our congressional delegation. There is absolutely no guarantee that the funding will be extended. In fact, Mr. Day's June 5, 1996 letter states, "should the city fail to return the grant acceptance forms by June 21, 1996, EDA will exercise its right to declare the financial assistance award null and void. Likewise, EDA would not commit as to whether the funding would be approved for a scaled-back project. In either case, the Administration will aggressively pursue saving the grant funds. JGP:HSM/jph Attachments 328