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169-94 RDA RESOLUTION NUMBER 169-94 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY RATIFYING THE CITY COMMISSION RANKING OF THEATER DEVELOPERS AND AUTHORIZING THE COMMENCEMENT OF NEGOTIATIONS WHEREAS, as a part of Resolution No. 94-21024, the City Commission authorized the Lincoln Road Multiplex Theater Request for Proposals (RFP) on January 19, 1994; and WHEREAS, the Final RFP was approved and issued on March 31, 1994 and amended on May 4, 1994; and WHEREAS, four responses were received to the Lincoln Road Multiplex Theater RFP by the deadline of June 6, 1994; and WHEREAS, a workshop was held on July 20, 1994 and a Public Hearing was held on July 27, 1994 for the City Commission to review and evaluate the four theater proposals; and WHEREAS, at the conclusion of the Public Hearing the City Commission ranked the four development teams and authorized the commencement of negotiations with the top ranked proposer, leading to the execution of a development agreement. NOW, THEREFORE, BE IT RESOLVED by the Chairman and Members of the Board of the Redevelopment Agency that the Agency Board ratifies the City Commission ranking of theater developers and authorizes the commencement of negotiations. PASSED AND ADOPTED THIS 27th DAY OF July , 1994. ATTEST: ~tk~ ~ ~ SECRETARY FORM APPROVED REDEVELOPMENT AGENCY GENERAL COUNSEL ~ By J C:) Date (- }."2..-'1'f Miami Beach Redevelopment Agency 1700 Convention Center Drive Miami Beach, Florida 33139 Telephone: (305) 673-7193 Fax: (305) 673-7772 REDEVELOPMENT AGENCY MEMORANDUM NO. 94-27 July 27, 1994 TO: Chairman and Members of the Redevelopment Board FROM: Roger M. Carlton Executive Director SUBJECT: CONSIDERATION OF LINCOLN ROAD THEATER DEVELOPMENT PROPOSALS AND AUTHORIZATION TO BEGIN NEGOTIATIONS RECOMMENDATION It is recommended that the Agency Board consider the written and verbal submission of the Lincoln Road Theater proposal teams (including clarifications), the recommendations of the Theater Selection Committee and the input from all concerned parties during the Public Hearing in order to make a ranking decision on the preferred development team(s) for the Lincoln Road Theater. The Agency Board is further requested to authorize the Executive Director to begin negotiations with the number one ranked team. DEVELOPMENT SELECTION PROCESS A Workshop was held on July 20, 1994, and a joint Public Hearing is scheduled on July 27, 1994 for the City Commission and the Agency Board to review and evaluate the four theater proposals. At the end of the Public Hearing, the City Commission and Agency Board will be requested to rank order the development teams and to authorize commencement of negotiations with the top ranked team, leading to the execution of a development agreement. BACKGROUND The revitalization of Lincoln Road, after 25 years of steady decline, is now resoundingly becoming a reality. By authorizing the Theater RFP process, consistent with the overwhelming Lincoln Road community support for the concept and location on the west side of the Road, the Agency Board took a critical step in assuring the comeback of the Road. On Monday, July 11, 1994, the nine member Selection Committee convened, selected a Chair, Mr. Herbert Leeds, and proceeded to interview all four proposers. A development matrix of the four proposals, attached as Exhibit A, was furnished to the Committee. At the end of the interviews, the Committee deliberated for several hours and ranked the four firms as follows: 1. Beach Cinema-Lincoln Road Development Group Inc.,OBR Holdings 2. Muvico Theaters South Beaach-Muvico South Beach, Inc. 3. Lincoln Road Cinemas-S.D.Ma1kin Properties Inc. ,JJR Properties 4. Lincoln Road Theater-Plaza Development Group, Mastec The Agency/City Commission subsequently conducted its Workshop on July 20, 1994, to interview all four proposers. 3 S()UTti ()()I~r: Vedevelvpment ()lstr1<<:t CfnI Cr:~r:l? l?edevelvpment ()lstr1<<:t Page Two CONCLUSION The General Counsel and Executive Director wish to express appreciation to the volunteer citizens who served on the Selection Committee, the Lincoln Road Partnership, and the staff who have all worked diligently to bring this project to this point. In summary, the decision now rests with the City Commission and Agency Board. The General Counsel and Executive Director suggest that the Chairman and Members of the Redevelopment Agency Board reach their ranking decisions based upon the totality of the input including the Selection Committee, consultant's report, oral and written presentations and the Public Hearing. The relative weight of these reports should be determined individually. Following the Public Hearing on this matter, the City Commission and Agency Board are requested to ratify the ranking of theater developers and authorize the Administration to enter into negotiations. RMC: jm Attachment 4 E_XIIIBIT A COMPARATIVE EVALUATION MATRIX - LINCOLN ROAD MOVIE THEATER RFP RESPONSES MUVICO PROJECT CRITERIA LINCOLN ROAD LINCOLN ROAD THEATERS CINEMAS BEACH CINEMA THEATER SOUTH BEACH Developer, PrIncipals, General Partners 5.0, Malkin Uncoln Road Plaza Development Muvico South Beach, Inc. Properties, Inc" Development Group, Group, Mastec/ JJR Properties Inc" CBR Holdings Church & Tower, Inc. Architect Carlos Zapata, L1VS Zyscovich, Inc., Norman M . Giller & Fullerton, Carey, Oman & Associates Bailey, Corley & Associates AleKander AssociatesfWallace, Roberts & Todd Construction Company Dacra Construction Pavarini Construction Arkin Construction Landmark Organization, Inc., Jordan & Nobles Construction, Inc. Theater CIrcuit General Cinema Cobb Theatres Aoyd Theatres Muvico Theatres Theatres Total number of: Screens/sq.". 10 screens/43,ooo s.f. 10 screens/40.ooo s.l. 10 screens/32.ooo s,l, 10/45.000 5.1. Seats 2,000 seats 1.997 seats 2,000 seats 2.000 seats Black Box: seats/sq.". 200 seats/3,000 s.t, n,a,/7.225 5,1. n.a,/5.500 s.I, n.a./5,000 5,1, Special Enhancements State-ol.the,art Digital theater stereo State-ol.the,art lucaslilm THX sound THX,HPS & Digital sound, 70 millimeter system, 70 millimeter sound systems projection, hearing projection, curved Impaired technology screens Number of Parking Space: on-sltelClty lot 390 Total: 190 In City 675 on.site (Base 674 on-site 650 on-site garage/200 in proposal)/19 on City adjacent office bldg lot Ancillary components Retail - 41.000 s,l. Restaurant, Retail & Retail - Yes, but not Retail - 49,000 s.l. Restaurant - 7.000 s,l, Gallery. 108.990 s.t. specified Gallery - 3,000 s.f. (Collectively on siles Studio/Residential - P-l0. P-l0B & on 20.000 5,1, Uncoln Road) Total Project Cost (Rounded) $12.1 million - does $18.1 million (Base $13 million $16.9 million not include SFAC proposal) land acquisition & $20.9 millIon (With demolition projected optional housing @ $2. ~ I"."i;alon compen"nt) . Cost~ do not include SFAC land acquisition, deficit parking spaces required. Black Box & annex Financing Structure (Rounded): Developer Equity $ 3,6 million $ 4.0 million $1.8 million $ 3.5 million Debt $ 10,5 million $15.0 million $7.3 million $12.9 million Olher (SpecIfy) $3,9 million $ 0.5 million City Partlclpatlon Proposed lease Payments to City: Annual Amt/$ per SF Annual Amt/$ per SF Annual AmtlS per SF Annual Amt/$ per SF Vear 1 $ 61,500/$1.50 $ 165,000/$1,50 $ 62.400/$1,50 $170.500/$1.55 Vear 2 $123,000/$3,00 (A) $220,000/$2,00 $ 83,200/$2.00 $225.500/$2.05 Vear 3 $123,000/$3,00 $275.000/$2.50 $104.000/$2,50 $280.500/$2.55 Vear 4 $123.000/$3,00 $330.000/$3,00 $124.799/$3.00 $335.500/$3.05 Vear 5 $ 123,000/$3,00 $346.500/$3,15 $124.799/$3.00 $335,500/$3.05 Vear 6 $123,000/$3,00 $363.825/$3.35 $124,799/$3,00 $335.500/$3.05 Vear 7 $123,000/$3,00 $382.016/$3,47 $124.799/$3.00 $335.500/$3.05 Vear 8 $123.000/$3,00 $401,117 /$3,64 $124.799/$3,00 $335.500/$3,05 Vear 9 $123.000/$3.00 $421,173/$3.83 $124.799/$3,00 $335.500/$3,05 Vear 10 $123,000/$3.00 $442.232/$4,00 $124.799/$3.00 $335.500/$3.05 This comparison evaluation matrix is in summary form and may be incomplete. No reliance should be placed on the Informatlon contained herein. No determination has been made as to compliance with the Request for Proposals or as to responsiveness 01 any of the proposals, The proposals have been listed in random order and does not Indicate any preference of any kind. NOTES: (A) Lincoln Road Cinemas - Proposed lease structure in years 2 through 10, call for a base rent of $3,00 per sq,ft. plus a modified CPI increase and overage amount to be negotiated with the City of Miami Beach. (B) In addition. proposer will provide 156 temporary spaces on lot 1 Db during construction. 5