2003-25267 ResoRESOLUTION NO. 2003-25267
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING A
PUBLIC HEARING ON SEPTEMBER 10, 2003, TO HEAR
PUBLIC COMMENT REGARDING A GROUND LEASE
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND
THE NEW WORLD SYMPHONY FOR THE DEVELOPMENT
OF A PORTION OF THE SURFACE PARKING LOT,
BOUNDED BY 17TM STREET TO THE NORTH, NORTH
LINCOLN LANE TO THE SOUTH, WASHINGTON AVENUE
TO THE EAST AND PENNSYLVANIA AVENUE TO THE
WEST, FOR CONSTRUCTION OF AN APPROXIMATELY
50,000 SQUARE FOOT EDUCATIONAL, PERFORMANCE
AND INTERNET BROADCAST FACILITY WITH AN
EXTERIOR SCREEN ("SOUNDSPACE"); FURTHER TO
CONSIDER A WAIVER, BY 5/7THS VOTE, OF THE
COMPETITIVE BIDDING AND APPRAISAL
REQUIREMENTS, AS REQUIRED BY SECTION 82-39 OF
THE MIAMI BEACH CITY CODE, FINDING SUCH AWAIVER
TO BE IN THE BEST INTEREST OF THE CITY.
WHEREAS, concurrent with completion of the first phase of the 17th Street Master
Plan study by Zyscovich, Inc., in October, 2001, (Master Plan), the Administration has
been in negotiations with the New World Symphony (NWS) regarding its proposed ground
lease involving a portion of the 17th Street Surface Parking Lot to accommodate the
development and construction of an approximately 50,000 square foot educational,
performance, and internet broadcast facility with an exterior screen, referred to as
"Soundspace", as well as (not part of the ground lease proposal), an adjacent 320 (+/-)
public parking garage facility (the Project); and
WHEREAS, concurrent with the negotiations, the NWS has and continues with its
outreach initiative, scheduling meetings with various Citywide committees to advise on the
Symphony's expansion plans and to obtain community input relative to the proposed
Project; and
WHEREAS, since January, 2003, NWS has presented its plans and proposed terms
before the Cultural Arts Council, the Lincoln Road Marketing Association, the Convention
Center Advisory Board, the Tuesday Morning Breakfast Club, the Parking and
Transportation Committee, the Land Use and Development Committee and the Finance
and Citywide Projects Committee; and
WHEREAS, on July 16, 2003, the Finance and Citywide Projects Committee voted
to support the Project subject to certain conditions, including:
1. the Development Agreement defines the minimum level of investment
by the NWS relative to the hard construction costs of the Project;
2. that the Project's Architect will endeavor to maximize the number of
parking places in the design and layout; and
3. that further consideration be given to the City's proposed level of
investment in NWS' parking component; and
WHEREAS, Section 82-39 of the Miami Beach City Code, governing the sale/lease
of public property, requires a public bidding process, a Planning Department analysis, and
an independent appraisal to determine the value of the leasehold interest; as well as a
public hearing to obtain citizen input; and
WHEREAS, Section 82-39 further provides forthe waiver of the competitive bidding
and appraisal requirements, by 5/7ths vote of the Mayor and City Commission, upon a
finding by the Mayor and City Commission that the public interest would be served by
waiving such conditions.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami. Beach, Florida, set a public hearing on September 10,
2003, to hear public comment regarding a Ground Lease Agreement between the City of
Miami Beach and the New World Symphony for the development of a portion of the
surface parking lot, bounded by 17th Street to the North, Lincoln Lane North to the South,
Drexel Avenue to the East and Pennsylvania Avenue to the West, for construction of an
approximately 50,000 square foot educational, performance, and internet broadcast facility
with an exterior screen ("Soundspace"); and further to consider a waiver, by 5/7ths vote, of
the competitive bidding and appraisal requirements; as required by Section 82-39 of the
Miami Beach City Code, finding such waiver to be in the best interest of the City.
PASSED and ADOPTED this
ATTEST:
CITY CLERK
JMG\CMC\KOB
T:~Agenda~Jul30\Consent\NWS_Lease_PHearing. RES,doc
day of July, 200
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
'' ICi~ ,~,ttorne~' Date
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, setting a Public Hearing
on September 10, 2003 to consider executing a Ground Lease Agreement between the City of Miami Beach
and the New World Symphony for the development of a portion of the surface parking lot, bounded by 17th
Street to the north, North Lincoln Lane to the south, Washington Avenue to the east and Pennsylvania
Avenue to the west for construction of an approximately 50,000 square foot educational, performance, and
internet broadcast facility with an exterior screen ("Soundspace"); and further to consider a waiver, by 5/7ths
vote, of the competitive bidding and appraisal requirements; as required by Section 82-39 of the Miami
Beach City Code, finding such waiver to be in the best interest of the City.
Issue:
Iappraisal requirements.
Setting Public Hearing to consider executing a lease agreement and waiver of competitive bidding and
Item Summary/Recommendation:
IAdopt the Resolution.
Advisory Board Recommendation:
Cultural Arts Council - March 7, 2003
Lincoln Road Marketing Association - March 11, 2003 and July 8, 2003
Convention Center Advisory Board - April 29, 2003
Transportation and Parking Committee - May 13 and June 3, 2003
Land Use and Development Committee - July 14, 2003
Finance and Citywide Projects Committee -April 21, June 17 and July 16, 2003
Financial Information:
Amount to be expended: None
Source of Am~t ~p~ro~ed
Finance Dept. TOtal
T:~AGENDA~003~jul3003\consent~lWS_Lease_PH .SUM .doc
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 ·
www.ci.miami-beach.fl.us
To:
From:
Subject:
COMMISSION MEMORANDUM
Date: July 30. 2003
Mayor David Dermer and
Members of the City Commission
Jorge M. Gonzalez
City Manager
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING ON
SEPTEMBER 10, 2003, TO CONSIDER EXECUTING A GROUND LEASE
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE NEW
WORLD SYMPHONY FOR THE DEVELOPMENT OF A PORTION OF
THE SURFACE PARKING LOT, BOUNDED BY 17TM STREET TO THE
NORTH, NORTH LINCOLN LANE TO THE SOUTH, WASHINGTON
AVENUE TO THE EAST AND PENNSYLVANIA AVENUE TO THE WEST,
FOR CONSTRUCTION OF AN APPROXIMATELY 50,000 SQUARE FOOT
EDUCATIONAL, PERFORMANCE AND INTERNET BROADCAST
FACILITY WITH AN EXTERIOR SCREEN ("SOUNDSPACE"); AND
FURTHER TO CONSIDER A WAIVER, BY 5/7THS VOTE, OF THE
COMPETITIVE BIDDING AND APPRAISAL REQUIREMENTS, AS
REQUIRED BY SECTION 82-39 OF THE MIAMI BEACH CITY CODE,
FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
Concurrent with completion of the first phase of the 17th Street Master Plan study (Master
Plan) by Zyscovich, Inc., in October, 2001, the Administration has been in negotiations with
the New World Symphony (NWS) regarding its proposed lease of a portion of the 17th
Street Surface Parking Lot to accommodate its Soundspace design concept (the Project).
As envisioned, the proposed 50,000 square foot facility will provide state-of-the-art
communication and media capabilities with a 700-seat (+/-) performance space,
classroom/educational, rehearsal and broadcast space. In addition to providing a world-
renowned, state-of-the-art facility, another focal point for the community, and the basis for
considering the facility's location on this site, is that it will incorporate giant video screen(s)
on one or more facades of the building, allowing the public to view live and recorded
broadcasts from around the world. The Master Plan contemplates situating the facility on
the west surface lot, just to the north of the existing NWS Theater on Lincoln Road. On
March 11,2003, the NWS announced its hiring of world renowned architect, Frank Gehry
of Gehry Partners, to design the Project. Frank Gehry will lead a consulting team that will
also include Zyscovich Architects, Nagata Acoustics, Theatre Project Consultants and
Donnell Consultants.
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 2 of 8
On January 8, 2003, the Administration referred an item to the Finance and Citywide
Projects to specifically address several issues, including but not limited to, the lay-out and
design of the proposed facility; the consideration for the ground lease; the amount of the
City's contribution towards the design and construction of the parking structure to partially
serve the facility's needs; the timing for the construction of replacement parking that will be
displaced by the project (City Hall expansion lot); and the configuration and use of the east
surface lot.
On April 21, 2003, the Administration presented a summary of preliminary terms to the
Finance and Citywide Projects Committee, which continues to provide a basis for
negotiations towards a Development and Lease Agreement. At the time, certain key
issues identified above were addressed as follows:
· Desi.qn: the lay-out and design of the proposed facility has not been finalized
pending Frank Gehry's review of the site and presentation of optimal siting
alternatives.
· Rental: the consideration for the ground lease was discussed and the NWS
proposes non-monetary contributions comprised of direct economic benefits, with
an estimated value of $780,000, consisting of the following:
· Educational contributions- $250,000
· Free public presentations- $280,000
· Programming of the projection screens- $200,000
· Free concert for the City- $50,000
Additional indirect economic impacts include job creation, cultural economic benefits
and visitor attraction and spending, in lieu of rental payments.
· Parking Cost: the amount of the City's contribution towards the design and
construction of the parking structure to serve the facility's needs, in whole or in part,
was discussed and the concept of the City capping its contribution at a fixed total
cost and NWS assuming responsibility for any overage due to design or
construction risk was supported;
· Construction Sequencin.q: the timing for the construction of replacement parking that
will be displaced by the project (City Hall expansion lot) was also discussed and the
Administration purported that negotiations contemplated replacement parking being
built prior to any displacement on the surface lots; and
· Adiacent Lot: the configuration and use of the east surface lot was also discussed
and members of the public expressed concern regarding displacing ancillary parking
that serves the 300 and 400 block of Lincoln Road.
The Committee passed a motion expressing their support for the proposed project and
directing Administration to proceed with their efforts of securing a lease with the New Wodd
Symphony at a rental rate of one dollar a year plus the in kind economic impacts the City
will receive by the completion of said project for a long term lease, contingent on the
following: all displaced parking being replaced and additional parking lots/garages being
built to accommodate increased parking necessities; the City will operate all new garages
as part of the City of Miami Beach Parking Program; and, review by the Transportation and
Parking Committee, and the Land Use and Development Committee.
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 3 of 8
Concurrent with the negotiations, the NWS has and continues with its outreach initiative,
scheduling meetings with various Citywide committees to advise on the Symphony's
expansion plans and to obtain community input. On July 29, 2003 a town hall meeting was
held at the Lincoln Theater and will be verbally reported on at the City Commission
meeting.
Since January, 2003, the NWS has presented its plans before the Cultural Arts Council,
the Lincoln Road Marketing Association, the Convention Center Advisory Board, the
Tuesday Morning Breakfast Club, the Land Use and Development Committee and on two
occasions before the Parking and Transportation Committee, and three times before the
Finance and Citywide Projects Committee. It should be noted that after the second
presentation before the Parking and Transportation Committee on June 3, 2003, the
Committee voted to support the Project in concept, subject to the following conditions:
· the City commits to replacing all lost/impacted parking;
· that construction will be phased to mitigate impact to area businesses and parking;
· to enhance linkages to Lincoln Road;
· to maintain a concurrency level no lower than "D";
· to provide handicapped parking access on North Lincoln Lane; and
· to bring back concept plans for the facility and adjacent parking areas.
While support for the Project is generally widespread, there is also some degree of
opposition and/or strong concern particularly from certain office, hotel and retail businesses
on Lincoln Road or within close proximity to the 17th Street surface lots. The primary
concerns involve the loss of parking spaces within an acceptable walking distance from the
respective businesses (regardless of the City's commitment to replace and enhance
parking spaces displaced by the Project), as well as the potential adverse impact from a
concurrency perspective. There was also concern expressed that the City should not be
focusing its resources on cultural venues when instead it should be pursuing tourism and
visitor-related enhancements, obviously not recognizing the projected cultural tourism
impact and financial benefits of the expansion of an established educational facility.
From a parking capacity perspective, the NWS in conjunction with City staff, prepared a
parking capacity overview (attached hereto), that provided a review of the existing
conditions, projected future parking capacity and construction sequencing. The following
chart summarizes the most current expectations revising the projected number of spaces
at the 17th Street surface lots and reducing the number of projected spaces at City Hall
Expansion Garage due to the potential Intermodal Component. The below chart also does
not project the future development of the P-Lot.
Parking Lots Existing Number Proposed Number Proposed Number
Spaces Spaces (Iow end) Spaces (high end)
17th Street 508 320 400
Surface Lots
City Hall 152 450 600
Expansion Garage
Total 660 770 1,000
Less: 660 660
Existing spaces:
Net Gain of spaces: 110 340
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 4 of 8
On June 17, 2003, the Administration provided the Finance and Citywide Projects
Committee with an updated term sheet, at which time the cost of parking had not been
negotiated, and it was reported that the intent was to have a Development Agreement
drafted in time for a first reading at a Public Hearing to be scheduled for the July 30, 2003
Commission meeting. Commissioner Smith recommended that the Agreement contain a
"drop-dead date" provision, requiring that in the event the Project fails to proceed within a
specified time frame from the date the NWS takes possession of the site, the site reverts
back to the City. In addition, the NWS should provide evidence annually of its ongoing
financial capacity to operate and maintain the Project. Additionally, the Committee asked
for the following items: an update concept plan/sketch of the proposed facility and
adjacent parking, incorporating the modified parking plan for the east lot with an enhanced
pedestrian linkage and greenway between 17th Street and Lincoln Road, a design reflecting
compatibility with the area scale and architecture, further community outreach with the area
hotels and Lincoln Road businesses/property owners, and an operating pro-forma for
Soundspace.
At the City Commission meeting on July 2, 2003, during the setting of the aforementioned
Public Hearing, the Commission voted to expand the area scope of the Development
Agreement, to encompass both surface lots, thereby providing Frank Gehry, the project
architect and designer, a greater degree of flexibility in the design and layout of
Soundspace, the parking facility, the green space and other aspects of the proposed
Project.
Since the last Commission report, the Administration has been working with the NWS to
finalize the Development and Lease Agreements, addressing the following issues:
Pursuant to an analysis of comparable parking structures, the City has determined
that its maximum contribution associated with the construction of NWS' estimated
320-space parking facility, shall not exceed $12,250 per space plus 12.5% for soft
costs (inclusive of any Prevailing Wage requirements and all site development
costs, permit and concurrency fees), subject to annual CPI escalations. NVVS will
pay for any incremental costs associated with Garage design and construction,
thereby mitigating the City's construction risk. If ground floor commercial accessory
use/retail space is required, the parties agree to meet and negotiate respective
responsibilities.
On the July 2 Commission Agenda, there was a referral item to the Planning Board
concerning a proposed amendment to the "CCC" Development Regulations to
allow for waiver of Development Regulations for parking so no encumbrance of
Garage is required. The legislative intent is that all parking displaced by the Project
shall be replaced and required parking will be provided. Consideration for this
waiver will be NWS' funding for public parking costs in excess of the City's cap. The
Planning Board meeting has been scheduled for July 29, 2003. Pursuant to the
recommendation of the Planning Board, this item will have to be brought back to the
City Commission for approval in the form of two readings, the first of which will be
held at today's date and the second meeting on September 10, 2003. The actual
waiver will be considered at a subsequent meeting.
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 5 of 8
In accordance with the provisions of Ordinance No. 92-2783 (Shapiro Ordinance),
the lease of any City-owned property for a period of more than five years, including
option years is subject a public hearing process, a planning analysis, a public
bidding requirement and appraisal requirements. This Resolution calls for approval
of the Development Agreement on first reading and sets the second Public Hearing
for September 10, 2003, for a second and final reading of the Development
Agreement and approval of a Lease Agreement between the City and the NWS.
Additionally, on September 10, 2003, in connection with approval of the Lease
Agreement, the City Commission will be asked to waive, by 5/7th vote, the
competitive bidding and appraisal requirements.
Since a concept plan will not be ready in time for the first or second reading of the
Development Agreement, the Design Team will prepare a massing plan, which will
reflect (based upon the preliminary dimensions of the Project's facilities), the
proposed locations and layout of the facilities. The final design of the Project shall
be subject to Planning Board review and final approval of the City Commission at a
later date, pursuant to the terms negotiated in the Development Agreement.
In order for the NWS' plans to proceed, the City must proceed with the construction
of the City Hall expansion garage. To this end, CIP has placed an item on the July
30 Commission Agenda, requesting authorization to proceed with program
management services to proceed with the programming aspects and design of the
parking facility. To the extent that the City Hall Expansion Garage is not completed
by May 1,2007, NWS has requested the ability to proceed with the construction of
its Project.
On July 14, 2003 and July 16, 2003, the Administration provided a report on the updated
terms and conditions of the proposed Development Agreement to both the Land Use and
Development Committee and Finance and Citywide Projects Committee respectively.
While the Land Use Committee did not take action, certain members expressed concern
with the City's proposed share in the cost of developing a parking facility for the NWS as
part of the parking expansion described in the master planned development. While the
Land Use Committee was intended to discuss the project concept plan and layout, they
were informed that Bernard Zyschovich and Frank Gehry would be working on blocking
diagrams of alternative site plans that would be presented on July 30, 2003 and that the
Development Agreement contemplates City Commission approval of a final concept plan at
a future date once the optimal project concept plan was finalized.
On July 16, 2003, certain members of the Finance and Citywide Projects Committee
expressed similar concerns but voted to support the Development Agreement, subject to
the following conditions:
that the Agreement defines the minimum level of investment by the NWS
relative to the hard construction costs of the Project. Section 3.2(b) defines
this at a minimum of $40 Million - for hard costs inclusive of furnishings,
fixtures and equipment.
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 6 of 8
2. that the Design Team seek to maximize the number of parking places in the
design and layout of the Project.
3. that the issue concerning the City's proposed level of investment in NWS'
parking component be revisited during the July 30 Commission meeting.
While the Development Agreement reflects negotiated terms between the parties, there are
two (2) primary outstanding issues that must be addressed by the City Commission:
Fundinq commitments for the Public Parking Facility adjacent to Soundspace:
Since the Parking component remains an outstanding issue, by way of background, it is
important to note that in the referral memorandum of January 8, 2003, the Administration
presented the following issue:
Additionally, NWS is looking to the City to absorb the cost of constructing a parking facility
to meet its parking requirements. The Master Plan contemplates a 240-350 space facility
(which includes an estimated 175 spaces to meet NWS' parking requirements), to be built
adjacent to Sound Space...Required Parking - While the City has agreed to construct and
operate a new parking facility to meet the requirements of the NWS, the cost to do so will be
significant. Based on a preliminary estimated requirement of 175 parking spaces and an
estimated construction cost of $15,000 per space, the facility could cost upwards of $2.6
Million.
Based on the direction received at the April 21, 2003 Finance and Citywide Projects
Committee, the Administration proceeded negotiating a fixed cost contribution for
construction of the municipal parking facility adjacent to Soundspace whereby the NWS will
pay for any incremental costs associated with Garage construction and design, thereby
mitigating the City's construction risk. The fixed rate cost reflected in the term sheet is not
to exceed $12,250 per space plus 12.5% for soft costs (inclusive of any Prevailing Wage
requirements and all site development costs, permit and concurrency fees), subject to
annual South Florida construction CPI escalations. The City Commission must address
the City's proposed level of investment in NWS' parking component.
2) NWS Possession Date:
Throughout the negotiations with the NWS, the Administration has consistently stated that
replacement parking must be built before displacement of either surface parking lot for
construction of garage. The City Hall Expansion Garage, must be built and completed, or
an alternate acceptable replacement parking location must be identified, prior to NWS's
commencement of Garage and Soundspace construction. However, the NWS has
expressed strong concern and reservations if the City Hall Expansion Garage is not
substantially complete by June 2006, they have requested the ability to proceed with the
construction of the project. The City has preferred a date of May 2007 if NWS has
obtained a building permit and issued a notice to proceed to its Contractor, the City would
agree to identify an alternate acceptable replacement parking location to enable the NWS
to proceed with construction of the project.
CIP has provided a conservative design and construction schedule for the City Hall
Expansion Garage as follows:
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 7 of 8
· NE Contract Award - April 2004
· BODR Approval- March 2005
· Design Review Board Approval - July 2005
· Construction Documents Completion- June 2006
· Construction Substantial Completion- November 2007
· Construction Final Completion- February 2008
The May 2007 timeframe assumes that the NWS has obtained a building permit and
issued a notice to proceed to their general contractor and would result in a 6 month period
in which both, one of the surface lots (i.e. approximately 250 spaces) and the west City Hall
lot (i.e. approximately 152 spaces) will be unavailable. It would be the City's intent to
segregate approximately 300 spaces within the P-Lot during such time period so that City
employees would not utilize the 17th Garage and relocate to the P-lot until substantial
completion of the City Hall Expansion Garage is achieved. While the primary impact may
affect the Convention Center bookings, at this time, the only shows scheduled during this
timeframe are the Annual shows as follows: (some coincident shows may also have a
similar impact, but at this time it's too eady to tell, as the Convention Center does not
contract those smaller shows until two years out)
· Home Show- Labor Day weekend
· SHOPA (Trade Show)- late September
· Jewelry- late Sept-early Oct
· Auto Show- late Oct-early Nov.
· IBEX (Boat Trade Show)- late Oct-early Nov
· Art Basel- early Dec
The City Commission must address if the NWS's request for an earlier possession
date, i.e. May 2007, prior to achieving substantial completion of the City Hall
Expansion Garage would be acceptable.
CONCLUSION
A revised Term Sheet, summarizing the terms of the Development Agreement is attached
to this memorandum.
Section 82-39 of the Miami Beach City Code, governing the sale/lease of public property,
provides that the lease of any City-owned property, including option periods, requires the
following:
· a public bidding process
· a Planning Department analysis
· an independent appraisal to determine the value of the leasehold interest
· a public hearing to obtain citizen input
Section 82-39 further provides for the waiver of the competitive bidding and appraisal
requirements, by 5/7ths vote of the Mayor and City Commission, upon a finding by the
Mayor and City Commission that the public interest would be served by waiving such
conditions.
July 30, 2003
City Commission Memorandum
NWS - Setting Public Hearing
Page 8 of 8
There is also a requirement that there be a minimum fifteen (15) day advertised notice
advising of the public hearing. In order to enable the Mayor and City Commission to hold
the public hearing in a timely manner, the Administration is recommending that the date
for said public hearing be set at this time.
On September 10, 2003, the Administration will recommend the proposed lease with the
New World Symphony to be in the City's best interest and thereby recommend waiving the
competitive bidding and appraisal requirements. As such, the Administration recommends
that the Mayor and City Commission set the public hearing for September 10, 2003, to
consider the proposed Lease and proposed waiver of the competitive bidding and appraisal
requirements.
JMG/CMC:KOB
T:\AGENDA',2003~jul3003\consent~NWS_Lease PH Setl,MEM.doc
Attachments
2.
3.
4.
5.
6.
Term Sheet
Timeline
Public Benefit
NWS Operating Proforma
Preliminary Master Plan
Parking Capacity Review and Phasing Plan
SEE ITEM R71
FOR ATTACHMENTS 1-6