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427-2002 RDA Reso RESOLUTION NO. 421-2002 A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, ADOPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECT COMMITTEE, AND APPROPRIATING $1,750,000 IN AVAILABLE 1998B CITY CENTER TAX INCREMENT REVENUES TO FUND THE ESTIMATED SHORTFALL IN DEVELOPMENT BUDGET FOR THE EXPANSION AND RENOVATION OF THE COLONY THEATER, AN ELIGIBLE PROJECT PURSUANT TO THE CITY CENTER mSTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA PLAN, DATED FEBRUARY 12, 1993, AND AS AMENDED ON MAY 29,2002. WHEREAS, on October 6, 1999, the Mayor and City Commission adopted Resolution No. 99- 23348, authorizing the City to execute a Professional Services Agreement with the State of Florida, Department of Management Services (DMS) for construction management of the Colony Theater; and WHEREAS, on March 6,2000, DMS authorized R.J. Heisenbottle (Architect) to proceed with programming and conceptual/advanced schematic design phases for the expansion and renovation of the Colony Theater; and WHEREAS, on December 15,2000, the Architect presented two options involving a new design scheme; and WHEREAS, according to the Architect, the design could not undergo further value engineering without adversely impacting the scope and purpose ofthe project; and WHEREAS, the Administration concured with this assessment and recommended proceeding with the first of the two options (Option "A"), involving the addition of 7,950 square feet to the Colony Theater, for a total estimated cost of $4,315,000; and WHEREAS, On May 14, 2001, the Administration went before the City's Finance and Citywide Project Committee,which voted in favor of appropriating $1,415,000 in available 1998B Tax Increment Bond Funds for the Colony Theater Project; and WHEREAS, subsequent to the Committee's recommendation, the Miami Beach Redevelopment Agency (RDA) appropriated the funding on June 27, 2001; and WHEREAS, the additional funding was necessary in order to begin bridging an estimated $2,415,000 shortfall between the original concept budget and the actual preliminary cost estimate, based on the design drawings and programmatic requirements; and WHEREAS, the funding appropriation from the RDA was subsequently used to leverage additional grant funding from the State of Florida, Division of Cultural Affairs, in the amount of $500,000, and from the National Park Service, Save America's Treasures Program in the amount of $700,000; and WHEREAS, since the appropriation of funding by the RDA, the design team, headed by the Architect, has been working to finalize the construction drawings and project specifications; and WHEREAS, the plans have had to undergo significant modifications, to address a variety of design, code-related and programmatic issues, mandated by certain regulatory entities, including but not limited to, the City's Historic Preservation and Design Review Boards, the Building and Fire Departments, Accessibility, the State Historic Preservation Officer, the Florida Building Commission, and Miami-Dade County's Board of Rules and Appeals; and WHEREAS, the cost of implementing these modifications, many of which were unforeseen, has driven the overall cost of the Project up significantly; and WHEREAS, the total projected cost of the Project currently stands at $6,363,778, reflecting a $2,049,000 increase over the established "Owner's Budget" of $4,315,000, as provided for in the Management Agreement between the City of Miami Beach and DMS, dated October 6, 1999, and amended on June 27,2001; and WHEREAS,. approximately $1,644,000 of the aforementioned increase is directly attributable to addressing regulatory mandates as described above; and WHEREAS, the increase also reflects approximately $334,000 in requested enhancements that are necessary to make the project whole, including rigging, lighting, new seating, acoustical fabric panels and railings in the auditorium; and WHEREAS, the difference between the current available funding for the Project and the total projected increase in costs is equal to $1,750,000, and : WHEREAS, on June 28, 2002, the Administration went before the City's Finance and Citywide Project Committee to request said amount for the Project; and WHEREAS, the Committee voted in favor of appropriating $1,750,000 towards the Project. NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman and Members of the Miami Beach Redevelopment Agency herein adopt the recommendation of the City's Finance and Citywide Projects Committee, and appropriate $1,750,000 from available City Center 1998B Tax Increment Revenue Bond proceeds to fund the estimated shortfall in the development budget for the expansion and renovation of the Colony Theater, an eligible project pursuant to the City Center Historic Convention Village Redevelopment and Revitalization Area Plan, dated February 12,1993, and as amended on May 29,2002. PASSED and ADOPTED this 10th day of July, 2002. ATTEST: ~r PaA-ct.- F:\CMGR\AGENDA\2002\RDA\Colonyres.doe (Resolution NO. 427-2002) COLONY THEATER STATUS REPORT June 1, 2002 . BACKGROUND/PROJECT mSTORY In early 1999, Miami-Dade County Cultural Affairs Dept engaged the Zeidler Roberts Partnership, Inc., to develop conceptual plans and cost estimates for the expansion and renovation of Colony Theater. The Plan failed to address many important elements and contained a preliminary cost estimate of $1.5 Million to undertake the proj ect. In September 1999, the City is awarded $720,000 Miami-Dade County Cultural Affairs Grant. On July 21, 1999, the City Commission authorizes Administration to apply to S.O.F., Div. Of Cultural Affairs for $500,000 Cultural Facilities Grant. City pledges $1,000,000 in (2-for-1) matching funds, from the following sources: Miami-Dade County Cultural Affairs Grant $720,000 City ADA Imp funds $ 60,000 Loan from Cultural Affairs Council $220,000 On October 6, 1999, the Mayor and City Commission adopted Resolution No. 99-23348, authorizing the City to execute a Professional Services Agreement with the State of Florida, Department of Management Services (DMS) for construction management of the Colony Theater. Note: DMS Program provides construction-management-at-risk and provides municipalities with project management services from the onset of a project, throughout the design phase, bidding process (resulting on a guaranteed maximum price), and culminating with construction oversight and coordination. On March 6, 2000, DMS authorized R.J. Heisenbottle (Architect), to proceed with programming and conceptual/advanced schematic design phases for the expansion and renovation of the Colony Theater. ~ Design had to address programmatic requirements, Historic Preservation scope and ADA and other code-related deficiencies. Design Development was subject of an extensive programming phase with input received from operator and users of the Colony Theater, City's Historic Preservation Officer, Property Management and the Planning and Zoning Department. In September 2000, the Architect presented three alternative design concepts to address expansion of backstage areas, ADA requirements and other identified improvements. The alternatives involved expanding the Colony into and over the alley on the south side of the building, expanding below grade (basement), or expanding to the east by incorporating a portion ofthe adjacent privately owned property. Given the extent of the improvements/enhancements identified during this process, the Architect exhausted attempts to design the Colony Theater's renovation within the parameters of the existing footprint of the building. Because the Colony Theater has never been substantially altered from its use as a cinema, achieving a fly-space was considered a vital element to become a true performance theater. The only way to accomplish this was to provide an "addition" to the structure. At the very least, plans called for demolition of the back of the house, which is riddled with asbestos and other code and fire violations, and to build a vertical addition, accommodating fly-space, technical storage and dressing rooms. On December 15,2000, the Architect presented a new scheme, calling for the removal of the rear 45 feet of existing building, construction of a new stage house, small second and third floor service areas behind the stage, a fourth floor "Backstage" area, elevator, stairs, and the addition of a new vestibule and exterior access ramp to provide ADA access to the stage. The historic preservation scope involves removing the existing marquee and storefront on Lincoln Road to its original historic appearance and modifying the interior lobby, office and concession area to be more consistent with the building's original design. The Architect presented an A and B option for this scheme, involving different size additions to the facility. Option "A" involved the addition of 7,950 square feet at a hard construction cost estimate of approximately $3.6 Million. Option "B" comprised a 9,520 square foot addition, for a total constructionlhard cost of $4.5 Million. According to the Architect, the design could not undergo further value engineering without adversely impacting the scope and purpose of the project. The Administration concurred with this assessment and recommended proceeding with Option "B". According to DMS, the total estimated cost of the project, inclusive of soft costs, would be approximately $4,315,000, significantly exceeding the available budget. On March 16, 2001, the City was awarded a National Park Service-Save America's Treasures Grant, in the amount of $835,000, of which $700,000 was appropriated for the Colony Theater project. Total available funding sources at the time comprised the following: County Cultural Arts Grant/P ACT: ADA Improvements (Bond Fund 351) Florida Dept of State Cultural Facilities Grant: Cultural Arts Council Loan Nat'l Park Service - Save America's Treasures Grant: Total: Est. Shortfall: $ 775,000 - Revised amt $ 60,000 - City Match $ 500,000 (Matching Req) $ 165,000 - City Match Rev amt $ 700.000 $2,200,000 ($2,415,000) On May 14, 2001, the Administration went before the City's Finance and Citywide Project Committee to request additional funding for the Project, in the amount $1,415,000 from the RDA. The Committee voted in favor of recommending the appropriation. Based on the Committee's recommendation, the RDA appropriated the funds on June 27, 2001. On June 27, 2001, pursuant to the Agreement with DMS, due to the increase in the Project Budget, the City and the RDA authorized a $61,436 increase to DMS's fees, for a total of $111,336. July 10,2001, Design Development Plans receive formal approval by Design Review and Historic Preservation Boards. Design Drawings proceed with anticipated completion by March, 2002. In August, 2001, the City applied for a second Cultural Facilities Grant in the amount of $500,000 from the S.O.F. Div. Of Cultural Affairs. The City identified the additional appropriation from RDA and a National Parks Service Grant, as matching funds requirements. S.O.F. Funds from second application were appropriated by the State in May, surviving a near veto the Governor. A third application in the amount of $500,000 is expected to be submitted in July, 2002., which is intended to bridge the projected shortfall. In October, 2001, following a bidding and selection process administered by DMS, a Contract was awarded to McCartney Construction, for the construction management phase of the Project. The Construction Manager has been working on developing a Guaranteed Maximum Price (GMP) Contract, which is expected was delivered on May 31, 2002 CURRENT ACTIVITIES AND PROJECT STATUS In January 2002, Florida Power and Light mandated the placement of an 18 sq.ft. transformer vault within the confines of the Colony Theater property, to handle the facility's anticipated electrical load. Since there is virtually no room inside the Colony to place the vault, the Architect presented a proposal to pad mount the vault in the public- right-of way, just north of the 9 ft easement area, on the west side of the Colony. The proposal, required the approval of the City's Historic Preservation and Design Review staff and is currently pending an easement from the City to proceed. The easement was contingent upon certain plans and specifications to be provided by FP&L, which were only recently received. On February, 8,2002, Design Drawings undergo preliminary review by building trade, accessibility/ADA and fire inspectors, which triggered the need to apply for certain regulatory waivers due to hardships encountered in dealing with certain code-related issues, including flood elevation, wind-load criteria and accessibility issues. Note: many of these issues arose as a result of the Florida Building Code's 50% Rule. ~ Flood Plain elevation - portions of the finish floor in the Colony fall as much as 2.75 feet below the required Flood Elevation of 8 feet. The floor varies from 5.25 feet to 8.67 feet. Due to lack of sufficient access below the building and lack of as- built drawings, it is not possible to flood proof the bottom of the existing structure, nor evaluate its structural resistance to the hydraulic pressures. Installing a hydrostatic slab as required, would result in the demolition of historically significant interior portions of the building, including but not limited to, terrazzo floors, walls, etc. As such an application was submitted for a variance to the City's Flood Plain Variance Board, which heard the case on April 5, 2002. The variance was approved. ~ WIND LOAD - All the new construction elements of the Project will comply with the Florida Building Code. However the existing/historic elements may not comply with all of the technical requirements of the Code. There is no practical way to reinforce the existing structural systems without complete demolition and reconstruction of the systems themselves, including floor slabs, floor joists, beams, interior piles and exterior wall panels. Due to recent changes in the Florida Building Code, it is not certain whether the County's Board of Rules and Appeals (BORA) or the City's Building Official has jurisdiction in these matters. The Project was set to go before BORA for a waiver on April 25, 2002, however due to recent (March 2002) changes to the South Florida Building Code, jurisdiction over waiving certain technical codes for historic buildings, including but not limited to, the alteration, repair and restoration thereof, has been shifted from the County's Board of Rules and Appeals (BORA), to the local Building Official's lap. As such, the waiver application was instead reviewed by the City's Building Official and Structural Plans Examiner., The Building Official has asked the Structural Engineer to come back once it has performed the necessary work and has reviewed the alternatives with the City's Historic Preservation Officer to determine the impacts to the project. ~ Accessibility - The existing slope in the entry foyer and that in the mam Auditorium, preclude the ability to ramp them in such a manner to meet accessibility requirements. There is also an issue with the design of the ticket booth, which precludes providing an adequate turning radius within the structure. Enlarging it to meet accessibility requirements would adversely impact its historic characteristics and reduce adjacent circulation space needed to comply with NFP A egress requirements. Waivers for these two items are pending before the State Historic Preservation Officer. Additionally, since vertical accessibility is not possible to all levels of the facility, a waiver is also being sought from the Florida Building Commission. On March 26, 2002, McCartney Construction presented the design development cost estimates, which exceeds the available construction budget by $577,140. Most significant line item differences from budget submitted in March 2001 are Concrete work, Life safety/fire sprinkler systems, HV AC, Equipment and Finishes. Actual anticipated. Additional cost overruns not contemplated in the estimate, include certain HP required interior finishes, including but not limited to, the creation of a free-standing ticket booth in the entrance lobby. These additional features could cost up to $200,000. The Administration is currently working with the Architect to identify value engineering options to reduce this exposure. In the meantime, The Construction Manager is continuing to working on developing a Guaranteed Maximum Price (GMP) Contract, which is expected by the first week in May, 2002. 100 % Construction drawings were delivered to the City for permitting during the week of April 29, 2002 and are currently going through the plan review process. On May 31, 2002, Staff met with the Design Team, McCartney Construction (Contractor) and the State of Florida's Department of Management Services (DMS), to review the 100% construction drawing cost estimates. The total projected cost of the Project currently stands at $5,959,279 or $1,645,000 over budget. (In actuality, the Project is only over budget by $1,445,000, since a $300,000 "Owner's Contingency" was built in to the requested appropriation from the RDA). This overage does not include an additional estimated $405,000 in requested enhancements that are necessary to make the project whole, including rigging, lighting, new seating, acoustical fabric panels and railings in the auditorium. Factoring in the Owner's Contingency and the cost of the enhancements, the project would be approximately $1,749,000 over budget. On June 28, 2002, the Administration's request for funding was presented before the City's Finance and Citywide Project Committee (Committee) for consideration. The Committee voted in favor of appropriating $1,750,000 towards the Project. Pursuant to the Committee's recommendation and subject to the approval of the RDA Board, the Project is expected to proceed on schedule, with groundbreaking scheduled for mid-July, 2002. The first phase of the Project involves the demolition of the stage house. The Project is anticipated to take 14 months to complete. Notice has already been provided to the Concert Association and the last day of programming is July 14,2002. Construction bidding is currently underway and ground-breaking, beginning with the demolition of the stage house, is scheduled to occur in the second week of July, 2002. Construction is expected to take approximately 14 months to complete. Owners Budget for Colony Theatre Project: Colony Theatre 1040 Lincoln Road, Miami Beach Owner's Included In Desciption Projected Contractor's Budaet Budaet Construction Budaet 3,356,167 3,356,167 Proarammina 3,500 Architect-Enoineer Basic Service 313,690 Authorization # 1 - Measured Drawino 3,000 Authorization # 2 - Estimatino 3,000 Authorization # 3 - Schematic Desion & Construction Estimate 7,840 Authorization # 4 - Cost Estimates 3,000 Authorization # 5 - TSG Desoin Solutions 16,765 Authorization # 6 - Measured Drawinos 8,000 Authorization # 7 - Landscaoe DesKIn 4,000 Authorization # 8 - Cost Estimates for DD & CD 8,500 Authorization # 9 - Threshold Insoection Services 7,500 Authorization # 10 - Artec Acoustic Consultants 67,045 Authorization # 11 - Structural UDorades for 25% Rule 10,000 Authorization # 12 - Interior Desion/Color and Material Selection 7,500 Authorization # 13 - Obtain ADDrovals From COMB 12,500 Indemnification 10 Miscellaneous Ads & Reoroduction Costs Allowances 2,500 Soil Borina Allowance 8,000 8,000 Testino of Concrete Allowance 20,000 20,000 Test & Balance Allowance 15,000 15,000 Connection Fee Allowance 25,000 Asbestos Survey Allowance 5,000 FF&E Allowance 100,000 Communication Fee Allowance 75,000 75,000 Insoection Fees Allowance 22,000 22,000 Fire marshal Fees Allowance 7,500 Allowance For Other Items 91,358 DMS Fee 111,336 TOTAL $4,314,711 $3,496.167 Total Construction budget from 100% CD drawings $5,090,735 Asbestos removal (ADD) $50,000 Enhancements necessary to complete project $404,499 Budget deficit ($2,049,067) Add-ons to project $2,049,067 Total project cost $6,363,778 Cost Estimate for Colony Theatre Project: Colony Theatre Plans Date: 04/12/02 1040 Lincoln Road, Miami Beach Date: 05130/02 Submitted bv: McCartnev Construction Comoanv Division Work Classification Original Design 100% Difference Difference No. Budoet DeveloDment CD Orig. vs 100% DD vs 100% 0100 General Reauirements 334,272 349,238 397,438 /63,166) /48,200' 0200 Demolition & Sitework 177,847 126,000 162,800 15,047 /36,800' 0300 Concrete Work 336,604 510,500 465,500 /128,896\ 45,000 0400 Masonry Work 124,777 128,800 90,000 34,777 38,800 0500 Melals 102,763 91,900 134,900 /32,137' /43,000 0600 Wood & Plastics 53,498 38,698 115,198 /61,700' /76,500 0700 Moisture & Thermal Control 83,069 105,100 112,100 /29,031 ' /7,000\ 0800 Doors, Windows & Glass 69,611 66,500 127,975 /58,364' /61,475\ 0900 Finishes 334,901 369,424 467,824 /132,923' 198,400' 1000 Specialties 118,678 140,312 209,516 /90,838 /69,204' 1100 Ecuioment 460,374 806,300 701,078 /240,704 105,222 1200 Furnishincs / see owners budcetl 0 0 0 1300 Special Construction 60,898 95,700 111,300 150,4021 115,600' 1400 Convevina Svstems 64,634 120,440 151,000 /86,366' /30,560 1500 HV AC Work 159,798 448,380 536,000 /376,202' /87,620 1520 Plumbina 106,864 88,900 129,514 /22,650' /40,614' 1600 Electric Work 202,504 282,600 470,700 /268,196' /188,100 TB Ticket Booth 100,000 (100,000) (100,000) Estimated Base Cost 2,791,092 3,768,792 4,482,843 (1,691,751) (714,051) General Contractor Fee 264,779 212,030 297,531 /32,752' /85,501 \ Continaeney 235,707 200,000 250,000 /14,293' 150,000' General Contractor Bond 46,136 47,530 60,364 /14,228 /12,834' Budaet difference /31 313,493 0 Tolal Above $3,651,207 $4,228,352 $5,090,738 (1,439,531) (862,386) Page Cost Estimate for Colony Theatre Project: Colony Theatre Plans Date: 04/12/02 1040 Lincoln Road, Miami Beach Date: 05/30/02 Submitted bY: McCartnev Construction ComnRnV I Additional work necessarv to comDlete Droiect A1 Additional rillllina 80,000 A2 Additional slace liahtina 63,000 A3 Railinas at Auditorium 19,008 A4 Sealinc 122,400 AS Acoustical fabric oanels 50,000 General Reauirements, Fee, Bond A1 - AS 40,128 Continllency A 1 - AS 29,963 404,499 I Total Construction Budllet $S,49S,237 1. Original budget includes J. A. Condon estimate plus preservation budget. 2. See attached breakdown of owners budget from Exhibit C. 3. Additional items included in owners budget not included in Condon budget Page 2 CITY OF MIAMI BEACH. Owner Colony Theater DMS - Project Manager I Reisenebottle - Arcbitect I McCartney Construction - Contractor Draw Reqnest Month: May JO...zooz ......... 'l1oIs - I - """ To Com, 397,438.00 162.800.00 465.500.00 9O,lXXUID 134,900.00 115,198.00 112,100.00 127.975.00 467,824.00 209.516.00 701,078.00 111.300.00 151,000.00 536,000.00 129.514.00 470,100.00 100,000.00 4,482.843.00 279,716.64 250,000.00 fiO,364.00 5,072,923.64 5.tm,m.64 COLONY_chw053002 aIdget 0.00% 0.00'1 0.00'1 0.00'.1 0.00'1> 0.001. 0.00% 0.00'1 0.00'.li 0.00'.1 0.00'1> IDIVtOl 0.00'.1 0.00% 0.00% 0.00'.1 0.0011 IDIVIOI IDIVIOI "'"'[OOi """8.4Oi 0.00% 0.00" IDIVtol ii42i 0.42.. - "'-""'" T.... - To Dote 17,814.36 l~ 7.'14~ - 8.676-:-00 8,676.00 ',676.08 9,138.36 9,138.36 '.t13I.36 _u.._ IlARD COSTS CoIooy""""'~) 0100 Gcocral Ra(uirancIts 0200 Demolition&Sitewort 0300 Concrecc Work 0400 """"Wod< ""'" .....". 0600 Wood &: ptastics 0700 Moisture" 'Ibennal Control 0800 Doon, WiDdows " Gass 0900 Finishes 1000 Spocial'" 1100 Equipment 1200 Fumishin&s 1300 Special Consttuttion 1400 eoovey;n,_ uoo HVAC Work 1520 Plumbing 1600 ElCClric Work Ticket Booch ...... .......... EstimatcdBascCost General ContnlclOr Pee Cootinpnoy GcncnlI O>ntno= Bond aw.., ""'"" Subtotal - Construclioo Cost AllowaDce TOTAL lIARD COSTS 4:48PM 012012002 ~~ ~~ ~~~~;~~~~;;;~;;~;$~$;;;8~;;~~$~ ~ ;; ~~~~~~~~~~o~~~~~~~eooooooooooo~ = ~~~ ! ' iHiil! .. .; 88 ~ 8 U '~""Si" l'il'i l'i 8~8 ~ 88 88883 ~ ~6~o'" .~~.... 'U~~~ ~ ~ ~g ~M~~a ~ J) JIM "l~ 88 8~88888888 888;888 ~ ~ ~~ ~~UU~U~. ~U~~!~. . . . . . , . . . . . ~ ~ ii M~~M~M~~.~ ~~~iN~M ~ t !} 88 8 ~~ ...,......,..,...,........,..., ~ ii , I u II 88 8~88888888 888;888 U ~~UU~U~. ~U~~!~. ~~ M~MM~M~~~~ ~~~iM~M ~ ~ ~ ~ ~ " ii l , ~ , ~ .. ~ g I i~ J I ~ i nl ~ ~ j ~ ~ ~ ~ i I ~ 0 . f ~ 8 t i " .1 j == - f u ;s:;s: ~5 ~I I I. ~lllj~ !. II) I J t .', I 1IIIt!llit11Illjlll!lfl!!!1 ~ ~li!]lj~~]I~J~I~I~~~jlfIJ~f~lfj i ~ ~ijfJ~~~~~~~~~~~~~~~~J~<~ ~~~~~~~i I ~ ~~ i I i ~~~J~ :l ~ ~~~~6 ~ ~ = !Il ! I >' ~ 8 '" 1'\ ~ ::l ~ 8 1:i , 1'\ . ~ i 8 :i ii ~ , .. ~ ~ CllY OF MIAMI BEACH REDEVELOPI\IENT AGENCY ITEM SUMMARY ~ Condensed Title: A Resolution of the Chairman and Members of the Miami Beach Redevelopment Agency, appropriating $1,750,000 in available 1998B City Center Tax Increment Revenues to fund the estimated shortfall in deyelo ment bud et for the ex ansion and renovation of the Colon Theater. Issue: The total projected cost of the Colony Project currently stands at $6,363,778, reflecting a $2,049,000 increase over the established "Owner's Budgef' of $4,315,000, as established in the Management Agreement between the City of Miami Beach and DMS, dated October 6, 1999, and amended on June 27, 2001. Approximately 80%. or $1,644,000 of the increase is directly attributable to addressing design, code- related and programmatic issues, mandated by certain regulatory entities, including but not limited to, the City's Historic Preservation and Design Review Boards, the Building and Fire Departments, Accessibility, the State Historic Preservation Officer, the Florida Building Commission, and Miami-Dade County's Board of Rules and Appeals. The increase also reflects approximately $334,000 in requested enhancements that are necessary to make the project whole, including rigging, lighting, new seating, acoustical fabric panels and railings in the auditorium. The Administration recommends funding the total projected shortfall, in the amount of $1,750,000, with available Tax Increment Revenue Bond funds. The amount requested, reflects the difference between current ayailable funding in the amount of $4,615,000 and the total projected cost of the Proiect. Item Summa IRecommendation: On June 28, 2002, the Administration's request for funding was presented before the City's Finance and Citywide Project Committee for consideration. The Committee voted in favor of appropriating $1,750,000 towards the Pro'ect. As such, the Administration recommends roceedin with the a ro riation b the RDA. Advisory Board Recommendation: I N/A Flnanciallnfonnatlon: Amount to be expended: Source of Funds: AGENDA ITEM DATE SC- 7-/0-0;;- MIAMI BEACH REDEVELOPMENT AGENCY CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.ci.miami-beach.f1.us REDEVELOPMENT AGENCY MEMORANDUM From: Chairman David Dermer and Date: July 10, 2002 Members of the Miami Beach Redeyelopment Agency Jorge M. Gonzalez \. 1 ~ Executiye Director U (J-'v 0 A RESOLUTION OF THE CHAIRMAN AND THE MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, ADOPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECT COMMITTEE AND APPROPRIATING $1,750,000 IN AVAILABLE 1998B CITY CENTER TAX INCREMENT REVENUES TO FUND THE ESTIMATED SHORTFALL IN DEVELOPMENT BUDGET FOR THE EXPANSION AND RENOVATION OF THE COLONY THEATER, AN ELIGIBLE PROJECT PURSUANT TO THE CITY CENTER HISTORIC CONVENTION VILLAGE REDEVELOPMENT AND REVITALIZATION AREA PLAN, DATED FEBRUARY 12,1993, AND AS AMENDED ON MAY 29,2002. To: Subject: ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS On May 14, 2001, the Administration went before the City's Finance and Citywide Project Committee to request additional funding for the Colony Theater Project, in the amount $1 ,415,000 from the RDA. The Committee voted in favor of recommending the appropriation. Subsequent to the Committee's recommendation, the RDA appropriated the funding on June 27, 2001. The additional funding was necessary in order to begin bridging an estimated $2,415,000 shortfall between the original concept budget and the actual preliminary cost estimate, based on the design drawings and programmatic requirements. The funding appropriation from the RDA was subsequently used to leverage additional grant funding from the State of Florida, Division of Cultural Affairs, in the amount of $500,000 and from the National Park Service - Save America's Treasures Program in the amount of $700,000. A third grant application to the State of Florida, for $500,000 will be submitted in July 2002. This last piece was intended to close the funding gap as follows: July 10, 2002 Redevelopment Agency Memorandum Colony Theater Appropriation Page 2 of 5 GRANT FUNDS: County Cultural Arts Grant/PACT: State of Fla. Cultural Facilities Grant (Ph I): State of Fla .Cultural Facilities Grant (Ph II): Nat'1 Park Service - Save America's Treasures Grant: Pending application: State of Fla. Cultural Facilities Grant (Ph III): Sub-total: Grant Funds: City/RDA Funds: ADA Improvements (Bond Fund 351) Cultural Arts Council Loan RDA TIF funds Sub-total: City/RDA Funds: Total Project Funding: AMOUNT $ 775,000 $ 500,000 $ 500,000 $ 700,000 PERCENT OF TOTAL $ 500,000 $2,975,000 64% $ 60,000 $ 165,000 $1.415,000 $1,640,000 $4,615,000 36% 100% Since the appropriation offunding by the RDA, the Design Team, headed by R.J. Heisenbottle Architects, has been working to finalize the construction drawings and project specifications. The 100% drawings were delivered to the City to begin the permitting review process on April 29, 2002. In order to get to this point however, the plans have had to undergo significant modifications, to address a variety of design, code-related and programmatic issues, mandated by certain regulatory entities, including but not limited to, the City's Historic Preservation and Design Review Boards, the Building and Fire Departments, Accessibility, the State Historic Preservation Officer, the Florida Building Commission, and Miami-Dade County's Board of Rules and Appeals. The cost of implementing these modifications, many of which were unforeseen, has driven the overall cost of the Project up significantly. A complete chronology is included as part of this package, which describes in detail, the complex issues which have had to be addressed throughout the design and permitting phase of this Project. Analysis On May 31,2002, staff met with the Design Team, McCartney Construction (Contractor) and the State of Florida's Department of Management Services (DMS), to review the 100% construction drawing cost estimates. The total projected cost of the Project currently stands at $6,363,778, reflecting a $2,049,000 increase over the established "Owner's Budget" of $4,315,000, as established in the Management Agreement between the City of Miami Beach and DMS, dated October 6, 1999, and amended on June 27,2001. Approximately 80%, or $1,644,000 of the increase is directly attributable to addressing regulatory mandates as described above. The increase also reflects approximately $334,000 in requested enhancements that are necessary to make the project whole, including rigging, lighting, new July 10, 2002 Redevelopment Agency Memorandum Colony Theater Appropriation Page 3 of 5 seating, acoustical fabric panels and railings in the auditorium. It should be noted, that the Project has been value engineered extensively, with most of the savings realized at the expense of programmatic elements. A breakdown of the costs associated with these increases has been prepared as follows: Colony Theater Detailed Budget Increase (Rounded) 1. Building/Structural Requirements. $231,610 A. Reinforcement of the concrete structure to address reyisions in the Florida Building Code. B. Provision of structural supports under the existing seating areas C. A custom roll-down fire shutter is being required at the stage to separate the Stage House from the Auditorium in case of fire. 2. Historical Elements $323,424 A. The Preservation Board has requested items that were not included in the original budget. They include: 1. A cast aluminum and marble Ticket Booth. 2. Three pairs of custom made aluminum doors at the Lobby. 3. Custom plaster work above the aluminum doors. 4. Multi colored terrazzo at the Lobby. 5. Custom aluminum storefront doors at the Theatre entry 6. Custom aluminum grillwork at the proscenium arch. 7. Concealing HVAC ductwork in Auditorium 7. Custom plaster work at the proscenium arch and sides of the Theatre 3. Mechanical $535,620 A. The Building Department is requiring upgrading of the fire sprinkler system in the existing Auditorium. B. Enhancements have been made to the air conditioning system for sound control. These enhancements are extremely costly but necessary upgrades. C. A custom ADA-compliant elevator has been designed to staff's specifications for accommodating a piano and a landing at the rear alley. j i u Ii! l..~~ . J!I :::!J;i"' 6 III I~ ~j!: i ~ ~ :::!J S! 0 . 1i ~ 8 t i 5 il ~ 'il ~ = ~ J i l II I u , i ~ e 88888jl JUUH {!. S;$I!,!~i< ~ , '" ~ J .. ~ ~ I J ~ ! ~u~~ ;~n IIIUil iUi _ 0:"1<"'1..... \CO,..... 0\ I I, ~ ~ ! 8"'~ f~ia ! :f~8 ~~- . .." 888 iJr~ . 888 "'E1~o~ ~ .. . .~!;1 !;1 ~ 888 .~~~~ .5~~~~ 8 ,,~~ - - ,! 888 ~=lloll .h ~ ~ ~~~~ l. . _Ii! Ii! ~ Ji~H hr:!i~ ,! 8~<!; !i~~~ . ~!;1I:HI ~ ~ 3 ;, J f i Iii I July 10, 2002 Redevelopment Agency Memorandum Colony Theater Appropriation Page 4 of 5 4. Equipment $206,689 A. Required to accommodate the larger sets that the Theatre will be attracting. These upgrades will only meet what staff feels are the basics but the systems installed are expandable in the future. 5. Electrical $268,196 A. The item has increased due to the increase in theatrical lighting and equipment. Also included is the ability to expand the systems noted above. 6. Roofing $29,032 A. The roofing on the Auditorium is being replaced in lieu of repairing the existing roof. 7. Asbestos Removal $50,000 A. The original budget only had consulting and inspection fees. This budget amount is for actual removal. 8. Contingency $70,091 A. The contingency has been increased due to the additional scope of work. Cost increases to date $1,714,662 Proposed Enhancements Auditorium Upgrades (Requested Enhancements) A. To complete the Theatre properly the architect strongly recommends the following areas be upgraded. 1. Replace existing seating. 2. Replace existing railing. 3. Install acoustical fabric panels at side of Theatre. 4. Rigging & lighting enhancements $334,408 Total Projected Cost Increase To Date: $2,049,070 July 10, 2002 Redevelopment Agency Memorandum Colony Theater Appropriation Page 5 of 5 It should be noted that the Administration has met with the Concert Association to discuss creative fund-raising approaches to address some of the requested enhancements, such as upgrading the seating through an "adopt-a-seat" campaign. The current budget fell short of addressing this important element, which has been estimated at approximately $123,000. Nevertheless, since the enhancements are necessary to properly complete the Project, and timing may be an issue to raise the necessary funding by other means, the Administration recommends funding the total projected shortfall, in the amount of $1,750,000, with available Tax Increment Revenue Bond funds. The amount requested, reflects the difference between current available funding and the total projected cost of the project, including the requested enhancements as follows: Total Project Cost wI Enhancements: Current Available Funding: Difference: $6,363,778 ($4,615,000) $1,748,778 (Rounded to $1,750,000) On June 28, 2002, the Administration's request for funding was presented before the City's Finance and Citywide Project Committee (Committee) for consideration. The Committee voted in favor of appropriating $1,750,000 towards the Project. Pursuant to the Committee's recommendation and subject to the approval of the RDA Board, the Project is expected to proceed on schedule, with groundbreaking scheduled for mid-July, 2002. The first phase of the Project involves the demolition of the stage house. The Project is anticipated to take 14 months to complete. Notice has already been provided to the Concert Association and the last day of programming is July 14, 2002. Unless the additional funding is granted, the Project cannot proceed. JMG:kob Attachments T:\AGENDA\2002\JUL 1 002\REGULAR\colony-mem2.doc