Resolution 2023-32592RESOLUTION NO. 2023-32592
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE FOR TRANCHE 1 OF
THE ARTS AND CULTURE GENERAL OBLIGATION BONDS SERIES 2023, IN
THE NOT -TO -EXCEED AMOUNT OF $101,700,000 AND GRANTEE FUNDING
IN TRANCHE 1; PROVIDING THAT THE GRANT AGREEMENTS FOR THE
NEW WORLD SYMPHONY, HOLOCAUST. MEMORIAL AND MIAMI BEACH
HISPANIC COMMUNITY CENTER SHALL INCLUDE FULL FUNDING FOR
PROJECT MANAGEMENT AND CONTINGENCY, SUBJECT TO CITY
MANAGER ADVANCE APPROVAL OF THE USE OF CONTINGENCY FOR
APPROVED SCOPE OVERRUNS AND UNFORESEEN CONDITIONS; AND
RECOMMENDING THAT THE AGREEMENT WITH MIAMI BEACH CLASSICAL
MUSIC FESTIVAL INCLUDE TERMS OF USE AND REVENUE SHARE.
WHEREAS, on July 20, 2022, the Mayor and Commission approved Resolution 2022-
32261, authorizing a special election, submitting to the electorate of the City of Miami Beach a
question asking whether the City should be authorized to issue general obligation bonds, not
exceeding $159,000,000, to improve facilities for resiliency of arts and cultural institutions
throughout the city, including museums, performance venues, artistic playgrounds, senior/cultural
centers, Botanical Garden, aquatic sculpture park, and related artist/workforce housing ("Arts and
Culture Bonds"); and
WHEREAS, on November 8, 2022, the voters of the City of Miami Beach approved the
issuance of $159 million in Arts and Culture Bonds; and
WHEREAS, on November 16, 2022, the Mayor and Commission referred a "Discussion
with Possible Action as Needed Regarding the G.O. Bonds For Arts And Culture Approved By
The Voters On November 8, 2022" to the Finance and Economic Resiliency Committee
("F.E.R.C."); and
WHEREAS, at the January 27, 2023 F.E.R.C. meeting, the Administration provided an
update which included: overview of Projects, potential issues for determining tax-exempt debt,
potential impacts of 2 tranches, potential options for debt structure and number of bonds issues,
timeline for bond issuance, impact of the Arts and Culture G.O. Bonds and other bond issues to
property owner; and
WHEREAS, the Committee directed the Administration to return in March with
recommendations for Tranche 1 funding and an evaluation of the breakdown between taxable
and tax-exempt components; and
WHEREAS, in determining the Tranche 1 recommended funding, the Administration
evaluated cash flow needs based on schedules created for each of the City owned facilities and
information provided by cultural institutions for projects that will not be managed by the City; and
WHEREAS, this approach allows -for only the necessary funding to be included in Tranche
1, and therefore reduces initial taxes paid by property owners with tax increases phased in over
time; and
WHEREAS, it is important to note that the New World Symphony, Holocaust Memorial,
and Miami Beach Hispanic Community Center (Coral Rock House) had been presented as City
owned cultural facilities throughout the project development and approval process (either because
the facilities are on ground leases or other long-term leases on City land, or because they were
included within a City owned facility as a sub -project); and
WHEREAS, therefore, in presenting the funding to be included in the'November 8, 2022
referendum question, the assumption was that these projects would be managed by the City and
the total costs assigned to each project included Contractor general conditions, overhead and
profit, bond, permit fees; "owner's" contingency; project Management by the City; and program
oversight by the City; and
WHEREAS, it has since been determined that these three projects will not be managed
by the City, but rather by each respective entity; and
WHEREAS, therefore, the Administration recommended grant agreements with amounts
that only included original requested costs plus estimated capital expenditures such as Contractor
general conditions, overhead and project, bond fees, and, permit fees, but conservatively
excluded the undefined "owners" contingency costs, to be made available if needed, subject to
advance review of the planned use of the contingency, by the City Commission; and
WHEREAS, the Administration also recommended removing City project management
and program oversight costs, which would have been transferred to Tranche 2 for future use if
needed, or be unfunded from the Bond; and
WHEREAS, on March 31, 2023, the Finance and Economic Resiliency Committee heard
input from staff and various Grantees; and
WHEREAS, the Committee made the following changes to the Administration's
Recommendation: 1. Include project management and project contingency for New World
Symphony, Holocaust Memorial and Miami Beach Hispanic Community Center s as part of the
initial grant agreement, with use of contingency related to the approved scope subject to City
Manager advance approval, and City project and program management amounts to be used by
the entities for their own project management (refer to Attachments 1 a, 1 b, and 1 c, for budget
sheets for each of the three entities); 2. Decrease Tranche 1 funding for the Wolfsonian from $5
million to $1.5 million, based on the funding needs for the next 3 years stated by the grantee; and
3.Increase Tranche 1 funding,for the Aquatic Sculpture Park from $2 million to $5 million, based
on an updated expedited schedule provided prior to the meeting; and
WHEREAS, with the aforementioned revisions, the final Tranche 1 amount is
$101,700,000 (distribution by project is included herein as Attachment 2); and
WHEREAS, the Committee also recommended that Byron Carlyle Theater and Fillmore
Theater (Jackie Gleason), remain in Committee for regular updates, and that the agreement with
Miami Beach Classical Music Festival include terms of ownership and use.
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 accept the recommendations of the Finance and Economic Resiliency Committee
for Tranche 1 of the Arts and Culture General Obligation Bonds Series 2023, in the not -to -exceed
2
amount of $101,700,000 and grantee funding in Tranche 1.; providing that the grant agreements
for.the New World Symphony, Holocaust Memorial and Miami Beach Hispanic Community Center
shall„ include full funding for. project management and contingency, subject 'to City Manager
advance approval of the use of contingency for approved scope overruns -and unforeseen
conditions; and. recommending that the agreement with Miami Beach :Classical Music Festival
include terms of use and revenue share.
April
PASSED and ADOPTED this a$ day of , 2023. =
Dan Gelber, Mayor.
ATTEST:
g.Eq
20?3
MAY 0 2
,
Rafael E. Granado, City Clerk s 'IMCORP ORATEW
�cH 26�-��PPROVED AS TO
FORM & LANGUAGE
& FOR 5XECUTIONAW
r
Dote
CI Attorney ��
Resolutions - R7 K
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE; April 28, 2023
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION 'OF THE CITY
OF MIAMI BEACH FLORIDA, ACCEPTING THE RECOMMENDATIONS OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE FOR
TRANCHE 1 OF THE ARTS AND CULTURE GENERAL OBLIGATION
BONDS SERIES 2023, IN THE NOT -TO -EXCEED AMOUNT OF
$101,700,000 AND GRANTEE FUNDING IN TRANCHE 1; PROVIDING THAT
THE GRANT AGREEMENTS FOR THE NEW WORLD SYMPHONY,
HOLOCAUST MEMORIAL AND' MIAMI BEACH HISPANIC COMMUNITY
CENTER SHALL INCLUDE FULL FUNDING FOR PROJECT
MANAGEMENT AND CONTINGENCY, SUBJECT TO CITY MANAGER
ADVANCE APPROVAL OF THE USE OF CONTINGENCY FOR APPROVED
SCORE OVERRUNS AND UNFORESEEN CONDITIONS;
AND RECOMMENDING THAT THE AGREEMENT WITH MIAMI BEACH
CLASSICAL MUSIC FESTIVAL INCLUDE TERMS OF USE AND REVENUE
SHARE.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
N/A
Applicable Area
Citywide
Is this a "Residents Right
to Know" item^pursuant to
Citv Code Section 2-14?
Yes
.: 1 .1 •
.1. :
Yes
Strategic Connection
Prosperity - Market and promote Miami Beach as a world class , arts, culture, and quality
entertainment destination.
Page 789 of 991
Legislative Tracking
G.O. Bond Program
ATTACHMENTS:
Description
Memorandum and Attachment
Resolution
Page 790 of 991
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: April 28, 2023
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE FOR TRANCHE 1 OF
THE ARTS AND CULTURE GENERAL OBLIGATION BONDS SERIES 2023,
IN THE NOT -TO -EXCEED AMOUNT OF $101,700,000 AND GRANTEE
FUNDING IN TRANCHE 1; PROVIDING THAT THE GRANT AGREEMENTS
FOR THE NEW WORLD SYMPHONY, HOLOCAUST MEMORIAL AND MIAMI
BEACH HISPANIC COMMUNITY CENTER SHALL INCLUDE FULL FUNDING
FOR PROJECT MANAGEMENT AND CONTINGENCY, SUBJECT TO CITY
MANAGER ADVANCE APPROVAL OF THE USE OF CONTINGENCY FOR
APPROVED SCOPE OVERRUNS AND UNFORESEEN CONDITIONS; AND
RECOMMENDING THAT THE AGREEMENT WITH MIAMI BEACH
CLASSICAL MUSIC FESTIVAL INCLUDE TERMS OF USE AND REVENUE
SHARE.
BACKGROUND
At the July 20, 2022 Commission meeting, the Mayor and Commission approved
Resolution 2022-32261, authorizing a special election, submitting to the electorate of the
City of Miami Beach the question asking whether the City shall be authorized to issue
general obligation bonds (GOB), not exceeding $159,000,000, to improve facilities for
resiliency of arts and cultural institutions throughout the City, including museums,
performance venues, artistic playgrounds, senior/cultural centers, botanical garden,
aquatic sculpture park, and related artist/workforce housing.
On November 8, 2022, the voters of the City of Miami Beach approved the issuance of a
not to exceed amount of $159 million in Arts and Culture Bonds as follows:
For Bonds 15,142 64.80%
Against Bonds 8,226 35.20%
Since November 8, 2022, City staff has been working internally and with the institutions to
be funded from the proposed 2023 Arts and Culture bonds proceeds to evaluate and refine
roles and responsibilities, timing of funding needs, etc., while at the same time, preparing
the documents needed by Bond Counsel to evaluate the taxable versus tax-exempt status
of each project. The latter is essential as to whether the bonds to be issued will be taxable,
tax-exempt or a combination.
Page 791 of 991
On November 16, 2022, the Commission referred a "Discussion with Possible Action as
Needed Regarding the G. O. Bonds For Arts And Culture Approved By The Voters On November
8, 2022" to the Finance and Economic Resiliency Committee (F.E.R.C.). At the January 27,
2023 F.E.R.C. meeting, the Administration provided an update including the following:
• Overview of Projects
• Why this bond issue is different from other city issues
• _ Tax-exempt vs. taxable bond issue
• Potential issues for determining tax-exempt debt
• Potential impacts of 2 tranches
• Potential options for debt structure and number of bonds issues
• Timeline for bond issuance — Summer 2023
• Impact of the Arts and Culture G.O. Bonds, and other bond issues, on property
owners.
At that meeting, the Committee also recommended funding $1.5 million from the
Miscellaneous Category for the Collins Park Performing Arts Venue Rotunda Project,
which was subsequently approved by the Mayor and Commission at their February 1, 2023
Commission meeting.
The Committee directed that this discussion be brought back to the Committee in March
with recommendations for Tranche 1 funding and an evaluation of the breakdown between
taxable and tax-exempt components.
In determining the Tranche 1 recommended funding, the Administration evaluated cash
flow needs based on schedules created for each of the City owned facilities and
information provided by cultural institutions for projects that will not be managed by the
City. This approach allows for only the necessary funding to be included in Tranche 1,
and therefore reduces initial taxes paid by property owners with tax increases phased in
over time.
It is important to note the New World Symphony, Holocaust Memorial, and Miami Beach
Hispanic Community Center (Coral Rock House) had been presented as City owned
cultural facilities throughout the project development and approval process, including at
the G.O. Bond Oversight Committee and at the Commission (either because the facilities
are on ground leases or other long-term leases on City land, or because they were
included within a City owned facility as a sub -project).
Therefore, in presenting the funding to be included in the November 8, 2022 referendum
question, the assumption was that these projects would be managed by the City and the
total costs assigned to each project included the following:
• Contractor General Conditions, Overhead and Profit, Bond, and Permit Fees;
• "Owner's" Contingency;
• Project Management by the City;
• Program Oversight by the City.
It has since been determined that these three projects will not be managed by the City,
but rather by each respective entity. As such, the Administration recommended grant
Page 792 of 991
agreements with amounts that only included original requested costs plus estimated
capital expenditures such as Contractor general conditions, overhead and project, bond
fees, and, permit fees, but conservatively excluded the undefined "owners" contingency
costs, to be made available if needed, subject to advance review of the planned use of the
contingency, by the City Commission. The total of contingency for all three of these grants
is $1.66 million.
Further the Administration recommended removing City project management and program
oversight costs, as they cannot be capitalized to the City, a total of approximately $1 million
over the three projects. This funding would have been transferred to Tranche 2 for future
use if needed, or be unfunded from the bond.
At the February 22, 2023 Commission meeting, the Mayor and Commission approved use
of the Miscellaneous funding category for the Miami Beach Classical Music Festival and
referred the determination of the amount of funding to the G.O. Bond Oversight Committee
to recommend the level of funding. The G.O. Bond Oversight Committee reviewed the
project at their March 30, 2023 meeting and made a motion to recommend funding at the
"Platinum" level in the amount of $1.5 million.
ANALYSIS
At the March 31, 2023 Finance and Economic Resiliency Committee meeting, the
Committee heard input from staff and various Grantees.
The Committee made the following changes to the Administration's Recommendation:
Include project management and project contingency for the three entities as part
of the initial grant agreement, with use of contingency related to the approved scope
subject to City Manager advance approval, and City project and program
management amounts to be used by the entities for their own project management.
(Refer to Attachments 1 a, 1 b. and 1 c, updated budget sheets for the three entities).
• Decrease Tranche 1 funding for the Wolfsonian from $5 million to $1.5 million,
based on the funding needs for the next 3 years stated by the grantee.
• Increase Tranche 1 funding for the Aquatic Sculpture Park from $2 million to $5
million, based on an updated expedited schedule provided prior to the meeting.
While supporting the Administration's funding recommendations for the Byron Carlyle
Theater and the Fillmore Miami Beach, the Committee also recommended that these
projects remain in Committee for regular updates.
Further, the Committee recommended that the agreement with Miami Beach Classical
Music Festival include terms of ownership and use.
The summary table included as Attachment 2 herein reflects the results of the analysis
and funding recommended by the Finance and Economic Resiliency Committee for
Tranche 1 in the amount of $101,700,000.
Page 793 of 991
The estimated annual impact to property owners for the issuance of Tranche 1 is $15 per
$100,000 of taxable value.
In addition, the Committee stated the need for on -going discussion regarding the
renovation or redevelopment of the Fillmore (Jackie Gleason Theater) and the Byron
Carlyle, and requested the Administration retain the original item specific to those projects.
CONCLUSION
The Administration recognizes that the Art and Culture bonds projects will be
transformative to Miami Beach by significantly elevating our museums, performance
,,venues, artistic playgrounds, senior/cultural centers, botanical garden, the future aquatic
sculpture park, and related artist/workforce housing.
As such, it is recommended that the Not to Exceed amount of $101,700,000 in Tranche 1
funding be approved. This will allow for the two Public Hearings on the Series 2023 Arts
and Culture G.O. Bond to be heard in May 2023 with the sale of the bonds and receipt of
proceeds by summer 2023, resulting in timely implementation of the projects.
Attachment 1a: Budget Sheet for New World Symphony
Attachment 1 b: Budget Sheet for Holocaust Memorial Miami Beach
Attachment 1c: Budget Sheet for Miami Beach Hispanic Community Center
Attachment 2: Tranche 1 Summary Table
Page 794 of 991
ATTACHMENT la
NEW WORLD SYMPHONY
Proposed Enhancements:
Elevator Modernization
750,000
_
Facility -wide Surge Protection
New Pergola for Roof Garden
150,000
750,000
Exterior Paint and Stucco Repairs
Flood Barriers
Acoustical Resurfacing of Performance Hall "Sails"
250,000
650,000
500,000
Replace Acoustic Panels Throughout NWC
Replace Fire Alarm System
150,000
255,000
Total Base Costi
$ 3,455,000
Contractor General Conditions, Overhead & Profit, Bond, Permit Fees 933,000
Project Management 422,000
Grant Agreement Amount 1,355,000
Owner Contingency (to be authorized by the City Manager) 889,928
TOTAL GRANT PROJECT BUDGET AMOUNT AS PER ATTACHMENT 2 $ 5,700,000
Page 795 of 991
ATTACHMENT lb
HOLOCAUST MEMORIAL
Proposed Enhancements:
Interior repair and replacement of center arm structure
250,000
Repatina of center arm structure including surface sculptures '
300,000
Replacement of broken Jerusalem stones
400,000
Regrouting of all walkway stones
200,000
500,000
Renovate center water feature and seal leaks (including filters)
Install new bicycle rack
500
Tech for State of the Art walking tour for visitors
150,000
State of the Art Security bollards at west side frontage
175,000
State of the Art telephone system for visitor info
75,000
Remodel security booth for 24-hour security staff
50,000
Renovations to Visitor Welcome Center
100,000
Renovations to Public Restrooms
150,000
Wayfinding and Directional Signage
5,000
Technology upgrade for Visitor Center
100,000
New outdoor walkway to classroom
125,000
_
Replacement of pond lamps
500,000
New lilies for pond feature
10,000
Security Gate for rear entrance
150,000
New CBS wall at rear of Memorial/West side of MBBG
375,000
Roof replacement for Classroom, Admin. Office, Security Booth and Visitor's
Center
250,000
New flooring for Classroom, Admin. Office, Security Booth and Visitor's Center
30,000
New Security System and Surveillance Cameras
750,000
Total Base Costi
4,650,000
Contractor General Conditions, Overhead & Profit, Bond, Permit Fees 1,270,000
Project Management 530,000
Grant Agreement Amount 6,450,000
Owner Contingency (to be authorized by the City Manager) 700,000
TOTAL GRANT PROJECT BUDGET AMOUNT AS PER ATTACHMENT 2 $ 7,150,000
Page 796 of 991
ATTACHMENT 1c
MIAMI BEACH HISPANIC COMMUNITY CENTER
Proposed Enhancements:
Restoration of Coral Rock House
500,000
Total Base Cost
$ 590,000
Contractor General Conditions, Overhead & Profit, Bond, Permit Fees 135,000
Project Management 57,000
Grant Agreement Amount 692,000
Owner Contingency (to be authorized by City Manager) 75,000
TOTAL GRANT PROJECT BUDGET AMOUNT AS PER ATTACHMENT 2 $ 767,0001
Page 797 of 991
ATTACHMENT
CITY OF MIAMI BEACH
G.O. BOND for ARTS and CULTURE
TRANCHE I SUMMARY
ALL FACILITIES
Bass Museum of AR
Miami City Ballet
Workforce Housing Miami City Ballet)
Fillmore Miami Beach Jackie Gleason Theater
Colony Theater
Miami Beach Botanical Garden
Art Deco Welcome Center
NewWorldSlimpinony
Holocaust Memorial Miami Beach
Byron Carlyle Theater
N0 Bearlt Oceanfront Center (UNIDAD)
MBHispwicCmmun' Cnb (Coral Rock House)
Collins Park Cultural Center (Miami New Drama)
Miami Beach Bandshell _
The Wollsonian - FIU
The Jewish Museum of Florida - FIU
AH Facilities Total 142 930 000 191367 000
OTHER PROJECTS
17 Artistic Playgrounds
18 Aquatic Sculpture Park
19 Misc. A 8 C: Collins Park Rotunda
20 Misc. A 8 C: M8 Classical Music Festival ^'
21 Workforce Housing for Cultural Institutions
Oliver Pro)rrab Total
S9 806 000
E 3.835.000
City Owned E
Parks Yes (Portion) Yes
1
E 3.835.000
5.000.000
_
State Land
TBD Yes (Phase 1) Yes
1
5.000.D00
105006000
City Owned
CIP No Yes
1
1,500,D00
1,500.000
Crty Owned
TBD Yes WA
1
1,500.000
4,000.000
TBD
TBD TBD TBD
1 2
{ 161176 000 0
Tnnahe 1 Total
Tnrroha 2 Total
TOTAL { the 7S6000
GRAND TOTAL (Rounded Up) { 169 000 000
CRR refers to Capital Renewal 8 Replacement Projects
" Tranche 2 Notes:
01 Bass Museum of Art Expansion construction approximately 45 %complete in T1. Remaining in T2
04 Flimoe Miami Beach: Construction approximately 40% complete in T1 Remaining in T2
05 Colony Theater. T2 scope requires completion of Collins Perk Cultural Center space.
010 Byron Carlyle: Construction approximately 25% complete in Tt. Remaining in T2.
X21 Workforce Housing for Cultural Institutions: Undetermined Projects go to T2.
'^ Misc. A&C: MB Classical Festival: amount recommended by the GOB Oversight Committee on March 30.
Page 798 of 991
{ 198671100
N1 836 D00
63.96% { 101 700 000
35.04% { E7A00,000
1 E9,