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HomeMy WebLinkAbout2003-25297 Reso RESOLUTION NO. 2003-25297 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING ON FIRST PUBLIC READING, IN ACCORDANCE WITH THE REQUIREMENTS OF SECTIONS 163.3220 - 163.3243 FLORIDA STATUTES, ALSO REFERRED TO AS THE FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, A PROPOSED DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND THE NEW WORLD SYMPHONY FOR THE DEVELOPMENT 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 AN APPROXIMATELY 320-SPACE (+/-) PUBLIC PARKING GARAGE FACILITY; AND FURTHER SETTING THE SECOND PUBLIC HEARING FOR CONSIDERATION OF THE DEVELOPMENT AGREEMENT ON SEPTEMBER 10, 2003 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 lease of 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", and 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 2nd , 2003, the City Commission voted to expand the scope of the Development Agreement to encompass the east surface lot as well in order to provide the Architect with greater flexibility in the design of the Project; 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 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 hereby approve on first public reading, in accordance with the requirements of sections 163.3220-163.3243, Florida Statutes, also referred to as the Florida Local Government Development Agreement Act, a proposed Development Agreement between the City of Miami Beach and the New World Symphony for the development 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 an approximately 320-space (+/-) public parking garage facility; and further setting the second public hearing for consideration of the Development Agreement for September 10, 2003. PASSED and ADOPTED this 30th day of July: MAYOR ATTEST: CITY CLERK JMG:CMC:kob T:V~,ge nda~2003~lul03\NWS_DevAg ree ment_res.doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attorney(~ Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY Condensed Title: IA Resolution approving on first reading, the proposed Development Agreement between the City of Miami Beach and New World Symphony, a not-for-profit organization, for the development 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; and setting the second public hearing for consideration of the Development Agreement on September 10, 2003. Issue: 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 17t" Street Surface Parking Lot to accommodate its Soundspace design concept (the Project). Since January, 2003, NVVS 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 Land Use and Development Committee, twice before the Parking and Transportation Committee, and on three occasions before the Finance and Citywide Projects Committee. 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) the Architect seek to maximize the number of parking places in the design and layout of the Project; and 3) that further consideration be given to the City's proposed level of investment in NWS' parking component. Item Summary/Recommendation: The Administration recommends approving, on first reading, the proposed Development Agreement between the City of M ami Beach and New World Symphony. Advisory Board Recommendation: ICultural 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 · 'inancial Information: Amount to be expended: Source of Am6~t Ac~u~t APPrOved Funds: 1 , T~tal Sign-Offs: DePartment D reCtb~ AS§ist~n~ C ~ M~h~er ci~ M~ge~ IT:~AGENDA~003~jui30031egulir\NWi-Ag!elienl-SU~I .do~c~'' I ~~I I COMMISSION MEMORANDUM To: From: Subject: 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, APPROVING ON FIRST PUBLIC READING, IN ACCORDANCE WITH THE REQUIREMENTS OF SECTIONS 163.3220 - 163.3243 FLORIDA STATUTES, ALSO REFERRED TO AS THE FLORIDA LOCAL GOVERNMENT DEVELOPMENT AGREEMENT ACT, A PROPOSED DEVELOPMENT 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 AN APPROXIMATELY 320-SPACE (+/-) PUBLIC PARKING GARAGE FACILITY; AND FURTHER SETTING THE SECOND PUBLIC HEARING FOR CONSIDERATION OF THE DEVELOPMENT AGREEMENT ON SEPTEMBER 10, 2003. 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 - Development Agreement 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: · Design: 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 NVVS 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- $50,000 Additional indirect economic impacts, include job creation, cultural economic benefits and visitor attraction and spending, in lieu of rental payments. · Parking Cost: the amount of the City's contribution towards the design and construction of the parking structure to serve the facility's needs, in whole or in part, was discussed and the concept of the City capping its contribution at a fixed total cost and NWS assuming responsibility for any overage due to design or construction risk was supported; · Construction Sequencing: the timing for the construction of replacement parking that will be displaced by the project (City Hall expansion lot) was also discussed and the Administration purported that negotiations contemplated replacement parking being built prior to any displacement on the surface lots; and · Adiacent Lot: the configuration and use of the east surface lot was also discussed and members of the public expressed concern regarding displacing ancillary parking that serves the 300 and 400 block of Lincoln Road. The Committee passed a motion expressing their support for the proposed project and directing Administration to proceed with their efforts of securing a lease with the New Wodd Symphony at a rental rate of one dollar a year plus the in kind economic impacts the City will receive by the completion of said project for a long term lease, contingent on the following: all displaced parking being replaced and additional parking lots/garages being built to accommodate increased parking necessities; the City will operate all new garages as part of the City of Miami Beach Parking Program; and, review by the Transportation and Parking Committee, and the Land Use and Development Committee. Ju~ 3o, 2003 Ci~ Commission Memorandum NW$ - Development Agreement Psge 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 IostJimpacted 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 17~ 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) 17TM 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 - Development Agreement 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 170~ 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. NWS 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 - Development Agreement 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. July3~ 2003 City Comm~s~nMemorandum NWS- DevelopmentAgreement Page 7of8 · NE Contract Award - April 2004 · BODR Approval- Mamh 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 early 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 In conclusion, a revised Term Sheet, summarizing the terms of the Development Agreement is attached to this memorandum. The Administration recommends approval of the Development Agreement on First Reading and setting the second public hearing for final approval of the Development Agreement on September 10, 2003. Three 1. companion items are also presented in today's agenda: A Resolution setting the public hearing on September 10, 2003 to consider approving the Lease Agreement between the City of Miami Beach and the New World Symphony for the subject site for the Soundspace project and further to consider waiver, by 5/7ths vote, of the competitive bidding and appraisal requirements; as required by section 82-39 of the Miami Beach City Code. An Ordinance amending chapter 142, "land development regulations," of the City Code; Division 7. "CCC, Civic and Convention Center District," in order to allow waivers of development regulations by a five-sevenths vote of the City Commission July 30, 2003 City Commission Memorandum NW$ - Development Agreement Page 8 of 8 for developments pertaining to government-owned or leased buildings, uses and sites which are wholly used by, open and accessible to the general public, or used by not-for-profit, educational, or cultural organizations, or for Convention Center Hotels, or Convention Center hotel accessory garages, or City utilized parking lots, provided they are continually used for such purposes. This proposed ordinance tracks the language that empowers the City Commission to waive certain development regulations with respect to City-owned property that is zoned "GU, Government Use" by amending the "CCC" District section of the Land Development Regulations of the City Code, to allow for the same procedure for City owned land in the "CCC" District. The proposed amendment to CCC Development Regulations enables the City Commission at a later date to waive the Soundspace Project Parking Requirement so no encumbrance of the public garage is required. {Note: The Legislative intent is that all parking shall be replaced and required parking will be provided.) Consideration forwaiver will be NWS' funding for public parking costs in excess of City cap. A Resolution authorizing the City to execute Amendment No. I to the existing Agreement between URS Corporation-Southern and the City of Miami Beach to provide Program Management Services for the design and construction of a multi- purpose municipal garage facility to be constructed in the parking lot adjacent to City Hall, in an amount not to exceed $1,003,882. The facility would provide approximately 450 to 600 parking spaces for use, depending on the programmatic uses decided upon for the facility. JMG/CMC:KOB T:~,GENDA~003\jul3003~regular~NWS_Agrrement_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 ATTACHMENT 1 -TERM SHEET Owner/Landlord: Developer/Tenant: Developer NE (Designers): Developers Corporate Status: Development Site: Legal Descriptions: Project Description: Revised July 25, 2003 City of Miami Beach New World Symphony (NWS) Frank Gehry (collaborating w/Bernard Zyscovich) 501(c)(3) the two (2) surface parking lots, bounded by 17th street to the north, North Lincoln Lane to the south, Washington Avenue to the east and Pennsylvania Avenue to the west, defined as "Development Site" and collectively includes: "Land", "Garage Property" and "Adjacent Property". · "Land" is defined as land and air rights under Ground Lease for Soundspace project. · "Garage Property" is the public garage facility within the Project. · "Adjacent Property" is the undeveloped portion of the site adjacent to the Land and Garage Property. Actual legal description(s) for Soundspace and Public Garage ("Project") to be finalized upon approval of Project Concept Plan. · Approximately 50,000 sf. footprint for "Soundspace", an approximately 700 seat educational, performance & internet broadcast facility with an exterior screen ("Developer Improvements"). (Programming of screen to be addressed in Lease) · Approximately 320+ space parking garage facility ("Garage Property"). · Designers will look aggressively at ability to add additional floor of parking in an effort to mitigate any net loss of parking in surface lots. (Section 2.2 of Dev. Agrmt.) · Designers will provide Project Concept Plan(s) looking at optimal siting alternatives within the Development Site, utilizing its best efforts to (i) minimize any net loss of public parking within the Development Site, (ii) enhance pedestrian linkages between 17th Street and Lincoln Road, and (iii) optimize compatibility with existing area scale and architecture. (Section 2.2 of Dev. Agrmt.) Project Cost/Responsibilities: Soundspace: Parking: Minimum Hard cost contribution of $40 million inclusive of F, F & E - NWS to design and construct on ground lease w/City. (Section 3.2.6 of Dev. Agrmt.) City will fund $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, as maximum contribution from City of Miami Beach for an estimated 320 spaces (with potential to maximize number of spaces). NWS will design and construct/CMB to own/operate as public municipal garage. NWS will pay for any incremental costs associated with Garage construction and design, thereby mitigating construction risk. Commercial Accessory Use: Development Agreement Term: Ground Lease Term: Parking Requirements: Construction Sequencing Commencement: A stand alone garage with frontage on street may require that 1st floor frontage is occupied by commercial accessory use i.e. retail, etc. Parties agree to evaluate optimal frontage uses when preliminary plans and specs are finalized and apportion the parties' responsibilities to build to the extent the frontage is not incorporated into the project. (Section 6.1 of Dev. Agrmt.) Not to exceed 10 years from commencement date, and may be mutually extended by parties. (Section 26.19 of Dev. Agrmt.) 55 years from completion; four 10 year renewal options City will propose amendment to CCC Development Regulations to allow for waiver of Development Regulations for parking so no encumbrance of Garage is required. (Note: The Legislative intent is that all parking shall be replaced and required parking will be provided.) Consideration for waiver will be NWS' funding for public parking costs in excess of City cap. Replacement parking must be built before displacement of either parking lot for construction of garage. The City Hall Expansion Garage, must be built and completed, or an alternate acceptable replacement parking locations must be identified, prior to NWS's commencement of Garage and Soundspace construction. However, if the City Hall Construction Staging: Art in Public Places (AIPP): Public Space in Soundspace: Underground Utilities: Public Benefits: Construction/Permitting: Preliminary Master Plan: Project Concept Plan: Preliminary Plans and Specs: Plans and Specs: Building Permit: Possession Date: Construction Completion: Expansion Garage is not substantially complete by May 30, 2006, NWS has requested the ability to proceed with the construction of the Project. - Based on the schedule provided by CIP, the City recommends May 30, 2007 as the eadiest date the NWS could proceed with possession/construction of the Developer Improvements, conditioned on the NWS having obtained a building permit and having issued a notice to proceed to its Contractor, and the City would agree to identify an alternate acceptable replacement parking locations (for instance, by segregating spaces within the P-lot. (Section 23.1.3 of Dev. ^grmt.) Construction staging for the Project will be confined to the Project site and construction workers will park at off site location, thereby not impacting current users in 17th Street Garage or adjacent lots. (Section 5.5 of Dev. Agrmt.) As the proposed Project constitutes private use on public land, the AIPP 1¼% will apply to NWS project construction cost (per proposed revisions to Ordinance). However, as provided in the AIPP Ordinance, NWS may seek a waiver of all or a portion of the required appropriation from the City Commission. (Section 5.1 of Dev. Agrmt.) NWS agrees to create a public component to the facility which educates the public on its use and provides the public with a visitor attraction even when the facility is not being utilized or a performance is not programmed. (Section 5.1 of Dev. Agrmt.) Developer will relocate any underground utilities on the project site, if necessary NWS commits to provide the following public benefits (see attachment) (include: Bridge Tender House Staffing)(to be attached to Lease Agreement) Attached to Dev. Agrmt. As Exhibit D NWS will submit Project Concept Plan to be reviewed by Planning Board and approved by City Commission, thereafter. (Section 2.2 of Dev. Agrmt.) City commences operation of City Hall Expansion Garage or May 30, 2007, whichever is earlier No later than 5 years from Possession Date, subject to unavoidable delays. Base Rent: Real Estate Taxes: Parking Operations: Bond/Financ~ Requirements: Change in Use: Prohibited Uses: Environmental Matters: Concurrency/Traffic Analysis: $1/year. (Lease Agreement) In the event Ad Valorem taxes are assessed, NWS will be obligated to pay as to land and building. (Lease) City will own and operate garage at City set rates. Subject lots were improved utilizing County/City funding (TECCA; Convention Center and Parking Revenue Bonds). As the proposed project is public use, the bond covenants and other requirements are addressed. If NWS ceases to operate Soundspace for the purposes contemplated under the Development Agreement and Ground Lease, or moves its principal place of business and operation from the City, an acceptable substitute public use will be mutually agreed upon by the parties or the facility will automatically revert to City, for public purpose use. (Lease Agreement) NWS shall in no way use the facility for any purpose/use that would impair status/integrity of this and other public funds initially used to improve the lots. Any such change in use will be treated as a default under the Ground Lease. (Lease Agreement) Property is leased "as is" and NWS is responsible for any required environmental remediation within their respective portion of the project site. Notwithstanding anything to the contrary contained herein, the NWS shall have the right to terminate the agreement prior to the Possession Date and to terminate the Development Agreement and the Ground Lease prior to the Possession Date because the costs of remediation are, in the reasonable business judgment of the NWS, render the Project economically unfeasible. NWS will be obligated to perform a traffic analysis and mitigate and meet all concurrency requirements. Notwithstanding anything to the contrary contained herein, the NWS shall have the right to terminate the agreement prior to the Possession Date and to terminate the Development Agreement and the Ground Lease prior to the Possession Date, because the Project cannot meet concurrency requirements or the costs of concurrency mitigation are, in the Right of First Refusal: Sale, Assignment, Transfer & Subletting: Performance Rentals: Covenant to fund Operations: Performance Bond: reasonable business judgment of the NWS, render the Project economically unfeasible. City has the right of first refusal to purchase NWS's interest in the Premises. (To be provided in Lease) Not permitted without prior written approval of City. NWS may mortgage its leasehold interest but cannot encumber City's fee simple interest. (Lease Agreement) Facility may be rented for performances or events by other organizations/corporations without prior written consent of City. (Lease Agreement) NWS will provide evidence annually of its ongoing financial capacity to operate and maintain Soundspace. NWS must also provide an annual budget prior to the beginning of each fiscal year with a rolling five year projection and an Annual Review by an independent financial professional, acceptable to City. NWS will provide an annual certified audited financial statement. (Proforma attached) (Lease Agreement) Prior to commencement of construction, NWS shall cause G.C. to furnish City with payment and performance bond or Letter of Credit. (Section 2.7(f) & 2.7(g) of Dev. Agrmt.) T:~AGENDA~003~jul3003\consent~NWS_Lease_PHead ng.ATr.doc July 30, 2003 City Commission Memorandum NWS - Development Agreement 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: 1) Fundinq commitments for the Public Parkinq 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 mu nicipal 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: Meetinqs to date: January 6 January 7 January 8 January 9 March 7 March 11 March 26 April 21 May 13 April 29 May 30 JUne 3 June 17 June 17 July 2 July 8 July 14 July 16 July 23 - July 29 - July 29 - July 30 - ATTACHMENT 2 - TIMELINE T & P at 3:30 Meeting with Bernard Zyscovich CITY COMMISSION MEETING - Referral to Finance Committee Meeting with JMG Cultural Arts Council (CAC) meeting Lincoln Road Marketing, Meeting with JMG Finance Committee - (Smith, Bower & Steinberg), 2:00 p.m., CMGRLCR Transportation and Parking Convention Center Advisory Board Negotiating Session with Administration Transportation and Parking Tuesday Morning Breakfast Club Finance Committee - Present Summary of Negotiated Terms with NWS CITY COMMISSION MEETING Referral of Amendment to Land Development Regulations (LDR) for waiver of Development Regulations. Set Public Hearing for First Reading of Development Agreement Meeting with Lincoln Road Marketing Inc. Land Use Committee Meeting Finance Committee Meeting Negotiating Session with Administration Town Hall Meeting with Lincoln Road Property Owners, Businesses and Hotels at Lincoln Theater Planning Board (Commission Chambers) Amend CCC District for City owned land to waive development regulations - parking requirement CITY COMMISSION MEETING Resolution approving on First reading of Development Agreement Resolution to Set Public Hearing for Lease Agreement Ordinance on First reading of Amendment to CCC District for City owned land to waive development regulations - parking requirement' Resolution authorizing City to engage URS as program manager and proceed with City Hall Expansion Garage Future Meetin.qs: September 10- CITY COMMISSION MEETING Second Reading of Development Agreement Second reading of Amendment to CCC District Approval of Lease Agreement Resolution authorizing RFQ for City Hall Expansion Garage October 15 November 5 CITY COMMISSION MEETING Set Public Hearing to Consider Waiver of Dev. Regulations CITY COMMISSION MEETING Public Hearing to Consider Waiver of Dev. Regulations Schedule of 2003 City Commission Meetings: November 5 and 25 December 10 T:~AGENDA~003~jul3003~consent\NWS_Lease_PHead ng.ATr.doc ATTACHMENT 3 - PUBLIC BENEFITS Soundspace Impact Statement The creation and operation of Soundspace will provide significant benefits to the City of Miami Beach and its citizens. As described below, the returns to Miami Beach, in terms of revenues, jobs, publicity, education, culture, and business opportunities will far outweigh its investment in land, additional parking and, should it be realized, the costs of creating and operating a surrounding park. Soundspace will also provide the New Wodd Symphony with unique opportunities to expand its educational and cultural activities to benefit every citizen of Miami Beach. The most significant of these opportunities include: Soundspace Smart Card Corresponding with the opening of Soundspace, the link with residents of Miami Beach will be a "Smart Card". Working together, the City of Miami Beach and NWS will create a redemption and distribution system for these cards. All cardholders will have frequent, discounted access to selected Soundspace presentations, and can be given priority access to other presentations. The Smart Card program will be publicized prominently in the opening season of Soundspace in hopes that it would become a new and efficient way to promote increased attendance for NWS programming. NWS currently presents over 16 free concerts and 36 paid-admission concerts annually. Soundspace will allow NWS to expand its offerings to the public, including the development of a series of short presentations, ranging from 15 to 20 minutes to as long as an hour, that will combine local live music making with electronic transmissions from all major music centers in this country and around the world. Intemet2 also makes it possible to broadcast musical events from other parts of the world that would not necessarily use NWS fellows and coaches. Assuming each presentation could be repeated eight times per weekend over ten weekends of the season, this totals 80 new events in the inaugural season of Soundspace. NWS might charge $5 per adult admission to these presentations, but they would be free to Smart Card holders, providing Miami Beach residents up to $280,000 in value annually. Each Smart Card will also hold $50 of value that can be applied for discounts to select ticketed Soundspace offerings. Given the current population, this puts $4.9 million directly into the hands of Miami Beach residents. NWS in the Schools NWS currently offers mentoring opportunities to students in Miami Beach schools with programs such as the Music Mentor Program, In-School Performances and Instrumental Coaching Sessions. Area elementary and middle schools often host In- School Performances while NWS fellows frequently coach students at Miami Beach Senior High. The use of Internet2 by NWS in master classes and concert settings provides students with greater accessibility to artists and composers around the wodd. In preparation for the opening of Soundspace, NWS proposes to meet with representatives of every Miami Beach school to develop customized educational programs for the benefit of their students. Using the worldwide reach of Internet2, Soundspace will provide Miami Beach students with greater access to artists and teachers from around the world. Skill-based instrumental training, broader work in the social context of artistic activity, and exposure to cutting edge technology will stimulate the imaginations of each and every student in the Miami Beach school system. These activities will take place in Soundspace as well as in the individual schools. The commitment of NWS resources for these programs will exceed $250,000 annually. Video Programming for Park NWS is prepared to provide regular video programming for the park. This programming will take many formats, from broadcasting entire NWS concerts and portions of concerts, to special events and other creative video presentations. Programming for the park will also feature other cultural organizations, local to international, and can include anything from dance to film to other forms of musical and visual art presentation. The commitment of NWS resources for this programming will be at least $200,000 annually. Concerts for the City With the opening of Soundspace, NWS would be pleased to provide at least one full orchestra concert annually for the direct benefit of the City of Miami Beach. Whether this takes the form of a holiday concert for Miami Beach residents, a special concert for City employees, or is part of a major joint promotional event, the possibilities are endless. Based on fees NWS commands for performances while on tour, each such concert is worth at least $50,000 to the City. Soundspace will also provide other direct and indirect benefits to the City of Miami Beach. These include: Economic Impact · NWS will invest an estimated $35 million in the construction of Soundspace. The construction phase will generate additional jobs and income for the local community. NWS will consider purchasing appropriate RIMS II Multipliers from the US Department of Commerce, Bureau of Economic Analysis in order to calculate the impact this construction will have on the local economy. Using published multiplier statistics for estimating economic value based on local spending, NWS' current operating expenditures of $7.3 million supports close to 300 full-time equivalent jobs in the Miami-Dade County region generating personal income of nearly $7 million, and over $300,000 in direct local government revenue each year. Much of this impact accrues directly to Miami Beach. Once constructed, Soundspace will increase NWS' operating budget by close to $2 million annually, creating over 75 new jobs and nearly $2 million in personal income for Miami-Dade and increasing government revenues proportionately. These figures do not include the impact of audience ancillary spending, which is discussed below. NWS already brings over 20,000 visitors to Miami Beach each year to experience live concerts. While a certain amount of concert activity will shift from the Lincoln Theatre to Soundspace, NWS expects the new facility to have a positive affect on concert attendance, by drawing more local residents and an increased number of visitors. To be designed by a world-renowned architect, the facility itself will become a destination for many people. According to the "2001 Profile of Visitors to Greater Miami and the Beaches," published by the Greater Miami Convention and Visitors Bureau, South Beach ranks as the #1 destination for all visitors to South Florida. Using statistics published by the GMCVB, a modest increase of 10,000 visitors could generate in excess of $2 million in additional visitor spending on lodging, meals, transportation, entertainment and shopping per year, more than half of which would likely be spent directly on Miami Beach. American's for the Arts June 2002 publication "Arts & Economic Prosperity" identified cultural tourists as being far more lucrative to local markets than traditional tourists - they spend nearly 40% more, are more inclined to use hotels and stay longer, and are more likely to shop. Using these figures, the 10,000 additional visitors cited above could generate significantly more additional visitor spending than as calculated using GMCVB statistics. The national American's for the Arts study cited above was based on in-depth market research in 91 communities nationwide, including Miami-Dade County. According to the Miami-Dade County Cultural Affairs Council, the 128 Miami- Dade based, non-profit cultural organizations generate economic activity - including the value of voluntary services and capital expenditures - of $2.69 for each dollar they spend. Using this multiplier, Soundspace should generate nearly $100 million in economic activity during its construction and first year of operation and over $5 million annually thereafter. While recognizing that Miami Beach is already a well-established tourist destination, it is instructive to note that the activities of the Guggenheim Museum in Bilbao generated a four-fold increase in direct tourist expenditures, area GDP and jobs for the Basque Country in 1997, the year the facility opened, and this increased level of economic impact has been sustained each succeeding year. Bilbao has now become a major tourist destination. Given the number of visitors to South Florida and the percentage that cite South Beach as their #1 destination, even a modest increase in the number of visitors to South Florida will provide substantial and direct benefits to the economy of Miami Beach. It is not difficult to argue that South Beach will see its share of domestic and international visitors increase substantially more than cited above once a signature building is constructed. If a park is constructed to surround a Soundspace fitted with a giant exterior screen, the local economy will receive a further boost, as park activities and screen broadcasts will draw more and more people to the northern edge of the Art Deco District, directly benefiting the merchants and restaurants in the Lincoln Road area. Publicity The work of an internationally recognized architect designing a signature building should generate articles in the top 50 American and the top 100 international daily newspapers, as well as coverage by all major feature, news, travel, and lifestyle magazines. With each national and intemational article about Soundspace, Miami Beach will increase its market penetration. This coverage will begin with the announcement of the architect and continue for at least a decade after completion of the building. Press coverage for new music presentation formats will be equally powerful with major musical figures joining New World fellows and guest artists through Internet2 transmissions. Examples of cultural marketing enhancing city and/or regional tourism include the Philadelphia Art Museum, MassMOCA, Boston Museum of Fine Art, and the Guggenheim Museum in Bilbao, Spain. Culture Existing and new Miami Beach arts organizations will have the opportunity to use Soundspace, thereby expanding and enriching their cultural activities. The Lincoln Theatre will also become a more accessible venue for other arts organizations, contributing to the City's reputation as a major arts-friendly community. By shifting certain concert activity to Soundspace, NWS will free up prime dates within the calendar for use by other arts organizations. NWS regularly limits or turns away dozens of organizations each year, from the Miami Symphony Orchestra, the Miami Film Festival and the Florida Philharmonic, to many independent organizations, who at present cannot get some or all of the dates they want due to NWS activities. NWS would be pleased to work with the City of Miami Beach to offer reduced rental rates at the Lincoln Theatre for small or emerging arts organizations. Business The City of Miami Beach and the Convention Center will have access to Soundspace for an agreed number of events per year. No other city government or convention center will have access to media as powerful as Internet2. NWS, the City and the Convention Center can work together to bring leaders in all fields to selected events in the Soundspace facility. Convention related events could be staged each year to promote the Center to potential clients and/or add value to the conventions that choose Miami Beach. The first use allows the Convention Center to increase its visibility without the cost of staff travel. The second addresses the ever increasing demand for high speed, high quality communications, making the Convention Center one of the most attractive venues in America. Summary NWS will invest at least $35 million in the building and development of Soundspace, and increase its operating budget by an estimated $2 million annually. Rapid improvement in technology will require steady high-cost capital and operating investment. Standard economic analysis demonstrates that the impact these investments will have on the local economy will be significant. This commitment of resources by a cultural institution is unprecedented in Miami Beach. If NWS is to make the most of this opportunity going forward, we need the City of Miami Beach to be a full contributing partner. The returns to Miami Beach, in terms of revenues, jobs, publicity, education, culture, and business opportunities will far outweigh its investment in land, additional parking and, should it be realized, the costs of creating and operating a surrounding park. ATTACHMENT 4 - OPERATING PROFORMA c=,:=ooc~ io I °l o.,- ,- ~ ,-- I~1 II °-II I ATTACHMENT 5 - PRELIMINARY MASTER PLAN ATT~ 0 0 ~o ~o CITY OF MIAMI BEACH NOTICE OF A PUBLIC HEARING NOTICE IS HEREBY given that a pub c hearing will be held b~/the Mayor and City Commission of the City of Miami Beach, Flonda, In the' consider the f;311owing~ e=r, aay, ,~u~y a~,, 2003, at 10:00 a.m., to TO CONSIDER APPROVING, ON FIRST READING, A PROPOSED .D.,E~_ _L. OPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH PH°"Y THE D VELOPM OF THE (3ENERALLY BOUNDED BY 17TH STREET TO ' [~O,R,~C~N..S.,T.R. UC_~_O_N_gF AN APPROXIMATELY 50,000 SQUARE Fl~ ,-~,,-,~-,'~.~Jm~a_, I"I:HI-UHMANCE, AND RECORDING FACILITY WITH AN EXTERI.OR SCREEN ("SOUNDSPACE"), AND AN APPROXIMATELy 320- S~P...AC~E.,?./-.)..P_U..B_L.I..C..PARKING GARAGE FACILITY. SOUNDSPACE WILL ~.~Jr~r~ A~.i~HUXlMATELY 21,880 SQUARE FEET OF PERFORMANCE 4 650 SQUARE FE[:~ OF T~,~ ?''~ ~U..~._ST.A~__E _S_UPPORT SPACE, SQUARE FEET OF ADMINISTRA'RVE-SURORT SPACE. Inquiries may be directed to the Economic Development Department at (305) 673-7193. INTERESTED PARTIES ars invited to appear at this meeting or be represented by an agent, or to express their views in writincl ~ to J t..h,e Cit]/Commission, c/o the City Cle~ 1700 Conven~nn J available for pubbc inspection during normal business hours In the City ! circumsta~,.~,, o,~,~:.~-~ [~_..[,~_,~_.r.,~ng ma.y. De contlnusd and under such / ,--~ ~,,,~,,~.., ~uuu~ noace WOUlO not be provided Robert E. Percher, City Clerk City of Miami Beach · . ,- ..... ~.,*.,~= ~u ~ppea~ any oecislorl made by the City hC~n~'."?2...~_?__P"CLtO.~y ,~..co.n,d~. at r= moeting or its ,~roc~..~,.~,-_p~_~_.au. ~m.u.s[ ensure ma! a veroatim record of the ~-. ,~1~ ~a~ .~lc]e, wrllcn record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise aJlowad by law '~ueat in~p~'-~ ...... moea~m.n to participate in this proceeding, or to ~,j, ..... ,_~.,~_,,~.u,,, un acce~ mr persons w th d sab ities, or to request ~_~_~__u.?ca[?n ,m. acoess~ble format, ~r to request sign language ,-~,t-,[~[ers, snoulo contact the City Clerk s office .t I.'~lm ~t7,t.7~ - ....... our~ays pnor to the proceeder,3 f hserino imaaired [ ~ ~ ~) or {~uo) 955-8770 {VOICE'), ' ( ' (Ad