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RESOLUTION 93-20726 RESOLUTION NO. 93-20726 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXPRESSING ITS INTENTION TO PROCEED WITH THE BASS MUSEUM OF ART CAPITAL FACILITY EXPANSION AND RENOVATION PROJECT; IDENTIFYING POSSIBLE FUNDS FOR ITS REQUIRED CASH MATCH; CONSIDERING THE ISSUANCE OF REVENUE BONDS IN THE AMOUNT OF $8. 1 MILLION TO FUND PHASE 1 OF THE PROJECT; AND AUTHORIZING THE CITY ADMINISTRATION TO COMMUNICATE THESE ACTIONS THROUGH GRANT CHANGE REQUESTS TO THE DEPARTMENT OF STATE. WHEREAS, the City of Miami Beach has received four grant awards during Fiscal Years 1988, 1989 , 1991, and 1992 , from the State of Florida/Department of State/Division of Cultural Affairs under the Cultural Facilities Grants-in-Aid Program totaling $1, 232 , 322 ; and WHEREAS, the City was recommended by the Secretary of State on January 6, 1992 , to receive additional funding during the FY 1993 cycle in the amount of $500, 000, Project Number CF93 . 029 , said application contingent upon appropriation of funds by the State Legislature; and WHEREAS, the City would have a cash match of $627 , 000 from Unallocated Resort Tax Revenues, and $638, 560 from Unallocated Bond Funds, Fund #351, for a total of $1, 265, 560 to be appropriated before October 1, 1993 ; and WHEREAS, the City will meet the balance of its required cash match by issuing Resort Tax Bonds in the principal amount of $8 . 1 Million, with net proceeds estimated at $6. 9 Million, on or before October 1, 1993 ; and WHEREAS, the City believes the in-kind value of the site and building would be the amount of $12 . 7 Million as its non-cash contribution and match toward its project share; and WHEREAS, the State of Florida has approved one grant change request on November 18, 1991, for this capital facility project extending the project completion date to February 15, 1993 ; and WHEREAS, the City now seeks another grant change request extending the project completion date for architectural and engineering services to December 31, 1993 , with a project completion report to be submitted on or before February 15, 1994 , to the Department of State; and WHEREAS, the Museum Trustees, the Friends of the Bass Museum and the City Administration have adopted a Five-Year Master Facility and Operating Plan in November, 1992 , which confirms its intent to move forward with the facility expansion and renovation in three phases, the first of which is to be funded from City resources and State grant awards totaling $9 . 4 Million and the remaining two phases totaling $8 . 5 Million to be funded from non- City sources; and WHEREAS, the City received fourteen (14) responses to its RFP on January 14 , 1993 , from world renowned architectural firms with experience in museum design and anticipates awarding a contract for architectural and engineering services in April, 1993 , with groundbreaking on January 1, 1994 ; and WHEREAS, approval of this resolution is predicated upon the establishment of a technical advisory committee which will address the issues at hand in conjunction with the Bass Board of Trustees and the Friends of the Bass, reporting to the City Commission prior to the issuance of any bonds. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: Section 1. That the City of Miami Beach expresses its intention to proceed with Phase One of the Bass Museum of Art 's Capital Facility Expansion and Renovation Project. Section 2 . That any final determination to issue Resort Tax Bonds or other forms of financing after the design and bidding processes are completed for Phase 1 may be contingent upon the Friends of the Bass Museum having received pledges or grants of not less than $2 Million for Phases 2 and 3 . It is estimated that the completion of design and receipt of construction bids will require approximately 15 months and that the $2 Million pledges will be in hand in an acceptable form during this 15 month period. Section 3 . That if the Friends of the Bass are not able to raise the balance of the $8 . 5 Million necessary for Phases 2 and 3 , within a total of 36 months of the date of this resolution, then to the extent allowable under the terms of any existing pledges, and if the City Commission has determined to complete Phase 1, the money received shall go into a trust fund with the earnings to be dedicated for operating programs of the Phase 1 expansion of the Bass Museum. Section 4 . Should at any time in the future, sufficient additional funds necessary for the completion of Phases 2 and 3 be made available, and the financial condition of the City be such that funds are available for operation of the Bass Museum, the balance of the fund defined in Section 2 above shall be made available for construction. PASSED AND ADOPTED THIS 17thEyAy OF Febi4T ry , 1993. MAYOR ATTEST: % a'11/4c11/4/`A. CITY CLERK FORM APPROVED LEGAL DEPARTMENT C ,e%- a(4-1,11.-Le BY: DATE: / qj RMC:LF:REB: ses • CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 00-93 TO: Mayor Seymour Gelber and DATE: February 17 , 1993 Members of the City Commission FROM: Roger M. C • •n City Manage SUBJECT: ADOPTION OF A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, TO PROCEED WITH THE BASS MUSEUM OF ART CAPITAL FACILITY EXPANSION AND RENOVATION PROJECT; IDENTIFYING FUNDS FOR THE REQUIRED CASH MATCH; PLEDGING THE ISSUANCE OF REVENUE BONDS IN THE AMOUNT OF $8.1 MILLION TO FUND PHASE I OF THE PROJECT; DECLARING THE VALUE OF THE SITE AND BUILDING AT $12.7 MILLION AS PART OF ITS IN-KIND PROJECT MATCH AND THE UNCONDITIONAL USE THEREOF; AND AUTHORIZING THE CITY ADMINISTRATION TO COMMUNICATE THESE ACTIONS THROUGH GRANT CHANGE REQUESTS TO THE DEPARTMENT OF STATE. ADMINISTRATION RECOMMENDATION: The Administration recommends adoption of the attached Resolution. BACKGROUND: The City of Miami Beach has received four grant awards totaling $1 ,232,322 during Fiscal Years 1988, 1989, 1991, and 1992, from the State of Florida/Department of State/Division of Cultural Affairs under its Cultural Facilities Grants-in-Aid Program for the Bass Museum of Art capital facility expansion and renovation project. Subsequent to these awards, during the FY 1993 funding phase, the Secretary of State recommended an additional $500,000 under this same program, contingent upon appropriation of funds by the State Legislature. On November 7, 1992 a retreat was held with participants from the Bass Museum Board of Trustees, Friends of the Bass Museum, Inc., and City Administration. The focus was discussion of the capital facility expansion and renovation project and a Five-Year Master Facility and Operating Plan for the museum which would provide measureable and quantifiable milestones to be followed to ensure the project's successful implementation. A consensus was reached at the meeting. These recommendations were presented at the November 18, 1992 City Commission meeting. A report of the retreat is attached. The Administration recommended acceptance of the report of the November 7, 1992 retreat and authorization for the Administration to proceed with preparatory work for the issuance of approximately $8 Million in Resort Tax Bonds to fund Phase I of the Bass Museum of Art facility expansion and renovation, subject to approval of development and design plans expected to be completed by September 1993. On that basis, Requests for Proposals (RFPs) for architectural and engineering services for the project were released in November 1992, and fourteen (14) proposals were received by the response date of January 14, 1993. 40 AGENDA I TEM DATE Bass Museum Expansion and Renovation Resolution February 17, 1993 Page Two It should be clear that certain members of the City Commission expressed reservations regarding the capacity of the Friends of the Bass to raise the matching funds, the priority of the funds in terms of City front end or pari passu, and other matters. ANALYSIS: At this juncture, a specific commitment by the City to implement the Bass Museum capital project must be forwarded to the State or funds awarded to the City may have to be returned. Conditions of grant awards require both cash and in-kind project matches from the City. An appropriation of $1,265,560 ($627,000 from Unallocated Resort Tax Revenues and $638,560 from Unallocated Bond Funds, Fund #351) during Fiscal Year 1992-93, and a pledge to issue Resort Tax Bonds in the amount of $8.1 million on or before October 1, 1993, must be accomplished to fulfill requirements relative to this capital project. Furthermore, an Architectural Selection Committee must be appointed to evaluate the fourteen (14) proposals received in response to the City's RFP in order to meet the timetable of the approved plan. Secondary to these actions, but equally critical, is the submission of grant change requests, accompanied by the attached Resolution as back-up documentation to substantiate the City's commitment to the State of Florida. This will allow project extension beyond the February 15, 1993 deadline currently in force. Without the adoption of this Resolution and the necessary grant change requests, the City is in a tenuous position vis-a-vis present or future State cultural funding for either capital or operations. In addition to the concerns regarding funding capacity expressed by the City Commission, issues related to operations and museum design require detailed exploration. To that end approval by the City Commission of the attached resolution is predicated upon the establishment of a technical advisory committee which will address the issues at hand in conjunction with the Bass Board of Trustees and the Friends of the Bass. As the design project evolves, the report of the committee will be made available prior to the issuance of the bonds. It is the position of the Administration that this study effort will not only allay community concerns regarding the project but also enhance the fundraising effort as major donors gain confidence in the project. During the past month the Friends of the Bass and the Board of Trustees have discussed the commitment to raise $8.5 million as matching funds to the City investment. The commitment has been reaffirmed and a substantial public information campaign launched. It is anticipated that many advocates of the Bass Museum expansion will be in attendance at the February 17, 1993 City Commission meeting. CONCLUSION: In conclusion, the attached Resolution must be adopted affirming the City's commitment to provide required matches to State grants and to demonstrate that the City considers the Bass Museum expansion and renovation a priority, RMC:DWC:DJJ:me FUNDIN , -ROVED 41 agement and Budget vsiV.a-LS.4.1..J RESOLUTION NO. 93-20726 06, Expressing its intention to proceed with the Bass Museum of Art capital facility expansion and renovation project; identifying possible funds for its r . required cas match; considering the issuance of revenue bonds In the amount of $8. 1 million to fund Phase 1 of the 0 project; and authorizing the City Administration to communicate these actions through grant change requests to the Department of State.