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Resolution 2025-33710 2025-33710 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE TO AMEND THE LEASE AGREEMENT BETWEEN THE CITY (LANDLORD) AND MIAMI NEW DRAMA, INC. (TENANT); SAID AMENDMENT, IN MATERIAL PART, TRANSFERRING FROM THE CITY TO TENANT THE RESPONSIBILITY FOR THE CONSTRUCTION OF THE IMPROVEMENTS FOR THE COLLINS PARK CULTURAL FACILITY, LOCATED IN THE CITY-OWNED COLLINS PARK GARAGE AT 340 23RD STREET; FURTHER, APPROVING THE TERM SHEET ATTACHED TO THE CITY COMMISSION MEMORANDUM ACCOMPANYING THIS RESOLUTION, CONTAINING THE ESSENTIAL TERMS OF THE AMENDMENT; AND FURTHER, AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE AMENDMENT AND A CORRESPONDING GENERAL OBLIGATION BOND FOR ARTS R CULTURE ("GOBAC") GRANT AGREEMENT, CONSISTENT WITH THE TERM SHEET, WITH THE FINAL AGREEMENTS BEING SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION. WHEREAS, on January 27, 2021, the Mayor and City Commission waived competitive bidding in favor of an unsolicited proposal submitted by Miami New Drama, Inc. ("MiND")for the development of approximately 16,000 square feet of ground floor space—including a 200-seat black box theater, rehearsal spaces, dressing rooms, administrative offces, and ancillary commercial uses—within the City-owned Collins Park Garage at 340 23rd Street (the 'ProjecY'); and WHEREAS, on July 27, 2021, the Planning Board approved the terms of a proposed Lease Agreement between the City (Landlord) and MiND (Tenant), in accordance with the requirements of Section 1.03(b)(4) of the City Charter, requiring approval by a majority 4/7'" vote of all members of the Planning Board; and WHEREAS, on October 27, 2021, pursuant to ResoWtion No. 202131914, the City Commission approved the Lease Agreement belween the City (Landlord) and MiND (Tenant) under which MiND was responsible for obtaining necessary design and architectural services while the City committed to funding the buildout improvements, subject to MiND raising a Tenant Contribution of $250,000.00 and pending appropriation of $4.75 million for the buildout (the "Landlord Contribution"); and WHEREAS, subsequent to the Lease's execution, on April 18, 2022, further planning and the development of the General Obligation (G.O.) Bond for Arts and Culture Program resWted in a revised funding allocation of $7.67 million for the Project, which was formally designated by Resolution No. 202332713 on July 26, 2023; and WHEREAS, on August 6, 2024, MiND submitted a memorandum requesting material modifications to the ProjecPs delivery model, which indudes the delegation of construction management responsibilities to the Tenant and an increase in the Landlord contribution to align with the full G.O. Bond allocation ("Landlord Contribution"); and WHEREAS, on November 8, 2024, the Finance and Economic Resiliency Committee (FERC) recommended that the City Commission authorize the Adminis[ration to negotiate a Lease Amendment together with a G.O. Bond Grant Agreement based upon TenanYs proposed terms, included in the FERC Memo; and WHEREAS, while the Project possesses signifcant programmatic and cultural value as a catalyst for activating the Collins Park Cultural District, the proposed changes necessitate robust safeguards to ensure the City's financial and operational interests remain protected and that fnal agreements be subject to prior City Commission review and approval; and WHEREAS, since the FERC meeting, the City and MIND have negotiated further the essential terms of Amendment No. 1 to the Lease, which terms are set forth in the Term Sheet attached to the City Commission Memorandum accompanying this Resolution and include the following material terms: i. The City shall deliver the Premises to MiND in shell condition, with MiND assuming full responsibility for design development, permitting, construction and construction administration of the Buildout Improvements; ii. The Tenant shall adopt a Construction Manager at Risk (CMAR) model, utilizing a Guaranteed Maximum Price (GMP) contract that incorporates cost containment provisions, contingency limits, and strict approval protocols, thereby mandating that any cost overruns exceeding the GMP be borne by the designated Construction Manager; iii. The construction of the Project shall be managed through a design-to-budget approach, covering preconstruction services, permitting, theatrical equipment, fumiture, fxtures, and equipment (FF&E), a 70% contingency allowance, and hard construction costs, all required to remain within the established Guaranteed Maximum Price; iv. The City's financial contribution for the Buildout Improvements shall be modified from an initial cap of $4.75 million to $7.604 million, in accordance with the General Obligation Bond Grant appropriation for the Project, with the funds being disbursed in the form of a grant since MiND will assume construction administration responsibilities; v. MiND shall remain solely responsible for all cosls related to Architectural and Engineering (A&E) services, which are currently estimated to be no less than $240,000.00, and shall engage architectural and design consultant services, including those proposed by Touzet Studio and Enrique Norten/TEN Arquitectos, as well as other necessary consulting services; vi. The City shall retain critical oversight of Project execution by (a) approving construction drawings at key milestones (30%, 60%, 90%, and final), (b) requiring that 20% of the Project Budget be designated as discretionary funds to allow for value engineering as needed, and (c) holding 10% of the Grant funds in reserve during construction for contingency purposes, wilh all grant disbursements to be contingent upon the submission of complete monthly draw requests supported by appropriate documentation and subject to City liaison approval; vii. A separate Grant Agreement will be execu[ed to govem construction protocols, containing provisions typically found in a work letter agreement, including the requirements for pertormance and payment bonds and for the submission and review of monthly reimbursement draw requests with supporting documentation; and WHEREAS,for the reasons ouilined in the City Commission Memorandum accompanying this Resolution, the City Manager recommends that the City Commission: accept the recommendation of the FERC to amend the Lease; approve the updated essential terms contained in the Term Sheet; and authorize the City Manager to negotiate a Lease Amendment and a corresponding General Obligation Bond for Arts & Culture ("GOBAC") Grant Agreement, based upon the proposed Term Sheet, subject to approval of the negotiated agreements by the Mayor and City Commission. 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 accept the recommendation of the Finance and Economic Resiliency Committee to amend the Lease Agreement behveen the City (Landlord) and Miami New Drama, Ina (Tenant); said Amendment, in material part, transferring from the City to Tenant the responsibility for the construction of the improvements for the Collins Park Cultural Facility, located in the City-owned Collins Park garage at 340 23rd Street; further, approve the term sheet attached to the City Commission Memorandum accompanying this Resolution, containing the essential terms of the Amendment; and further, authorize the City Manager to negotiate the Amendment and a corresponding General Obligation Bond for Arts & Culture ("GOBAC") Grant Agreement, consistent with the term sheet, with the final agreements being subject to the prior approval of the Mayor and City Commission. PASSED and ADOPTED THIS aS day of �u� 2025. ATTEST: � � JUN 3 0 2025 �j • � �.ZCmtil__ EL . GRANADO, CITY CLERK STEVEN MEINER, MAYOR �s� REGIS BARBOU t�'`' B�c"'.. _�:,�/��z. _ `�i�.. '; ; : ;iNroRa oa�rEo: ; ''--.3. ^: 'Y .. � ;,c�_' `'�,RCH'26;.,: ve�<.r o ,. .. navao n ae .curinN 6//7)2oLS r.� �N o..� ResoWtions -C7 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the Ciry Commission FROM: Enc Carpenter, City Manager DATE: June 25, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CIN OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE TO AMEND THE LEASE AGREEMENT BETWEEN THE CITY(LANDLORD)AND MIAMI NEW DRAMA, INC. (TENANT); SAID AMENDMENT, IN MATERIAL PART, TRANSFERRING FROM THE CIN TO TENANT THE RESPONSIBILITY FOR THE CONSTRUCTION OF THE IMPROVEMENTS FOR THE COLLINS PARK CULTURAL FACILIN, LOCATED IN THE CITY-OWNED COLLINS PARK GARAGE AT 340 23R� STREET; FURTHER, APPROVING THE TERM SHEET ATTACHED TO THE CIN COMMISSION MEMORANDUM ACCOMPANVING THIS RESOLUTION, CONTAINING THE ESSENTIAL TERMS OF THE AMENDMENT; AND FURTHER, AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE AMENDMENT AND A CORRESPONDING GENERAL 08LIGATION BOND FOR ARTS 8 CULTURE ("GOBAC")GRANT AGREEMENT, CONSISTENT WITH THE TERM SHEET,WITH THE FINAL AGREEMENTS BEING SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION. RECOMMENDATION The Adminisiration recommends that the Mayor and City Commission authonze the Administration to prepare a Lease Amendment and cortesponding General Obligation Bond for Arts & CWNre ("GOBAC') Grant Agreement with Miami New Drama, Inc. for the Collins Park Cultural Faciliry, based on the material tertns wtlined in the attached Term Sheet, with all fnal agreemenls subject to the approval of the Ciry Commission. BACKGROUNDIHISTORY Leasa Approval • January 27. 2021: The Mayor and City Commission waived competitive bidding to accept an unsolicitetl proposal submittetl by Miami New Drema, Inc. (MiND) for approximately 76,000 square feet of ground floor space, induding interior space and exterior tevace areas, in the city-owned Collins Park Garage at 340 23rd Street. The proposal outlined the development of MiND's pnmary peAormance venue and headquarters, including a 200-seat black box theater, rehearsal space, dressing rooms, and administrative offices, as well as ancillary commercial uses, including a standalone restauranVcafe (the "Project"). • Ocfober 27. 2027: Resolution No. 2021-31914 approved the initial Lease Agreement belween the Ciry (Landlord) and MiND (Tenant), whereby MiND commiried lo independenlly funding its design and architectural services, while the City provided 239 funding and wnstruction for buildout improvements, continqeM on a $250,000 Tenant Contribution and appropriation of a $4.75 million Landlord Contnbution. • Aoril 18 2022: The Lease Agreement was executed. Revised Fundinn Allocation • November 2022: Miami Beach voters approve the GOBAC Program, which included a revised allocation of$7.67 million to the Projecl, following revision of Project buildout cost estimates. . Julv 26 2023: Resolution No. 2023-32713 formally allocated $7.67 million, satisying the City's funding commitment under lhe Lease. Lease Modification Reauest . Auoust 6 2024: MiND submitted a request to the City Manager for material modifcations to the delivery model, including transferring full responsibilities for construction management and project execution to the Tenant, as well as increasing lhe Landlord Contribution irom $475 million to $7.604 million, aligning with the GOBAC allocation. . Sentember 11. 2024�. the Administration recommended the Mayor and City Commission, refer the Project to the Finance and Economic Resiliency Committee (FERC) for further discussion. . November B. 2024:the FERC transmitted a favorable recommendation of proposed Lease modifications, including conversion of the ProjecPs funding allocation into a GOBAC Program grant. • November 20 2024: In parallel with ongoing discussions on proposed Lease modifications, ResoWtion No. 202433398 approved the installation of a temporary artistic window covering. This installation, funded by the City, not only highlights MiND's pertormances but also enhances the exterior aesthetics of the vacant leased premises. ANALYSIS The following sedions outline the risks, key operational safequards, and Ciry oversight mechanisms relevant to the proposed Lease Amendment. Proarammatic and Cultural Value The Pmject is emisioned as a comerstone activation of the Collins Park Cultural Dis[rict. Anchored by MiND's aNs programming, the facility is expectetl to drive yearvround public engagement[hmugh theatrical performances, educational initialives, and community events. Under the executed Lease, lhe GOBAC allocation was intended to fund capital improvements related to lhe buildout of the Collins Park Cultural Facility, with the City retaining full control and oversight over Project execution. While MiND has demonsfrated success managing the programming of the Colony Theatre, development of a new cultural facility introduces different levels of operational and fnancial complexity. Therefore, any approval of the proposed Lease Amendment and associa[ed Grant Agreement should be contingent upon fnancial safeguards, measurable peAormance benchmarks, and continued City oversight. 24� Shift in Proiect Delivery Model MiND's request represents a signifcant shift from a city-managed construction model to one led by the TenanL While Ihis may ease administra[ive burden and potentially expedite delivery, it inVotluces risks commonly associated with ihird-party construction managemen[, such as reduced City oversight on butlgeting, constmction qualiry, and project scheduling. Although the G.O. Bond for Arts and Culture Program includes limited-scope grants, for example, funtling theater equipment or digital upgrades, those grants do not compare in scale or complexity, and there is currently no precedent within lhe program for delegating full construction management responsibilities for a City-owned facility to a third-party grantee. Accordingly,the proposed Lease Amendment and Grant Agreement would establish a precedent for capital delivery in publidy owned facilities and should be carefulty evaluated (or long-term implications. Pr000sed Citv Safeauards To mitigate risks associated with the tenant-led consVuction management model, the Administration and MiND jointly developed cntical safeguards to preserve the Ciry's financial antl operational interests: • eaecution of a Grant Agreement that incorporates pmvisions typically(ound in construction agreements, including reimbursement protowis, documentation slanCards, and peAormance expectations; . inclusion of a cross-defaWt clause linking the Lease and Grant Agreement to strengthen entorcement mechanisms�, . retention o(City oversight rights with approvals at major design milestones (30%, 60%, 90%, and final construclion drawings); . required approval o!draw requests by the Ciry liaison, with accompanying backup documentation; and . mandating that MiND employ a Construction Manager at Risk (CMAR) under a Guaranteed Maximum Price (GMP) contrect, including cost containment and approval provisions. OutsWnding Considerations 1. Proiect Delivery Risk The Administration recommends that any deviation from a City-managed delivery model undergo a thorough evaluation of ihe TenanCs capacity to manage scope, cost, and quality assurance. Although MiND has demonstreted a strong record in cultural programming, it has limited expenence in overseeing large-scale, municipal capital improvement prqects. 2. AiPP Waiver Reouest MiND must request a waiver from the Ciry's Art in Public Places (AiPP)contribution requirement. The G.O. Bond is subject to public bond covenan[s; accordingly, the waiver may be in the Ciry's best interest to ensure full allocation of available resources to core Pmject elemenls. Term Sheet The Administration and MiND have developed a Term Sheet for a proposed Amendment to Ihe Lease Agreement (Attachment A), which incorporates several key terms ro protect the Ciry's financial and operational interesls. 241 e.isarq�.aze rmms�ra cna�nopm�a �p yp O9 N�11 ilre Lease AgxmxM belwam Me Ciry anE IManl EaleO RpN 10 143I wmarvad Ly Gy Cmmmasbn aewWno�No 2@�Jt9ta MYm New�n a IM a FMqa notlorpaM mrpor enR�opeuMg inunl u�En a ManagemeM Ayaemenl br Ne Cdany T�earte vTi[f�I5 WNM�o I�e Lea9!nJ i 0045�ONBW p�ONyCn Appoa�nal�ry 16 000 5yuare len ol qwuM Mx Mxo�aM etlalo�space ai Remen IIre Coiia PaA Px4ig Guap�.a nxnYtlpN paM1F91a[�ry KKa�M a�3<O t3r4 srcew�me aeopeMl Ir�W ierm 5 v6a ricNg on vupM�ry 7•� . 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M gorem conmuWn qabcah In(L�bg uyWemmis lo� . CB�o�mancu aM paymenl Eo�ffi Btd s�tn�lss� ol monM/iamdvsemml . Jaw�eyuesrc WEi suppaning OxvimrPMon 243 FISCAL IMPACT STATEMENT City Financial Contribution: • $7.604 million in G.O. Bond Grant funding already appropnated. . No additional contribution is proposed. • Consis�ent with Ihe original Lease, MiND remains solely responsible for all architectural and engineering (A8E) costs that exceed $250,000. This measure ensures that any overrun beyond this threshold is bome entirely by the Tenant. Risk Mitigation Measures: • 10% of the Grant to be retained by the City as a contingency tluring construction, separate from the 5% contingency containetl in the GMP Agreemenl. • 20% oF project scope identifed as discre[ionary for potential value engineenng. . City retains flnal approval of key construction documents and tlisbursement drawdowns. Does this Ordinance reauire a Business Imoact Estimate7 (FOR OR�INANCES ONLY) If applicable, the Businass Impact Estimate(BIE)was published on: See BIE at: httos:l/www.miamibeachFl.qov/ciry-hall/ci[v-clerklmeetinq-noticesl FINANCIAL INFORMATION CONCLUSION The Administration recommends that, upon careful evaluation of these implications, the City Commission authorize ihe Administration to negotia�e the Lease Amendment and associated GOBAC Grant Agreement, with MiND, in alignment with the attached Term Sheet and subject to fnal Ciry Commission review and approval. Aoolicable Area Soulh Beach Is this a "Residents Rioht to Know" item. Is this item related to a G.O. Bond pursuant to Citv Code Section 2-17? Proiect7 No Ves Was this Aaenda Item initialiv reauested bv a lobbvist which. as defined in Code Sec. 2-081, i�cludes a orincioal enoaned in lobbvina? Yes If so, specify the name of lobbyist(s) and pnncipal(s): Miami New Drama, Inc. I Nick Richberg 244 DeoaAment Economic Development Soonsor(sl Co-soonsorlsl Condensed Title Accept ReGAmend Lease Agreement w/ Miami New Drama, 340 23rd Street. ED Previous Action (For CiN qerk Use Onlv) 24S Miami New Droma I Collins Park Cultural Arts Facility 340 23'"Street, Miami Beach Lease Amendment: Key Proposed Tarms June 25, 2025 1. Overview of Proiecl and Transadion. The City of Miami Beach ("City" or"Landlord") is the fee simple owner of certain real property(Ihe "Property")known as the "Collins Park Parking Garage," located a[340 23rd Street, Miami Beach, Floritla. The Property includes a municipal parking garage and associated improvements (the "Parking Garage"), antl approximately 16,000 square feet of ground-Boor retail space(the"Retail Space"). The City and Miami New Drama, Inc. ("MiND" or "TenanP) desire to amend the Lease Agreement dated April 18, 2022("Lease'),which govems the TenanYs use of the Retail Space ("Premises") within the Property. Mind contemplates building out the interior space and additional extenor terrace areas pursuant [o the essential terms set forth herein and in accordance with ihe current Conceptual Plan, described in Exhibit "A", which inGudes, among other improvements, the mandatory design elements described in Section 4 (the "Buildout Improvements") (collec�ively, the'PmjecY'). 2. Buildout Resoonsibiliri. The Lease shall be amended to reflect that the Landlord will deliver the Premises in shell condition. Su6ject to the ferms of the Lease Amendment antl the G.O. Bond Grant Agreement, the Tenant shall be responsible for conshucting and installing all walls, partitions, fxtures, furniture, and equipment (FF&E), and other intenor Pmject improvements necessary to make the Premises suitable for its intended use. 3. Landlord ContributioN Grant AareementlConstruction. The Lease shall be amended to reflect that [he Tenant will receive a G.O. Bond Grant. Pursuant to a Grant Agreement, the Tenant shall assume full responsibility for all Project elemenis set forth in Section 4 including, without limitation, construclion delivery, funding, permitting, Contractor selection (subject to the reasonable approval of the City), and oversight of the buildout improvements tor the Project. a. Landlord Contribution. The total G.O. Bond Grant funding available for this Project shall not exceed $7,604,000.00 ("G.O. Bond Grant Funds"); however, TenanPs total available funding and budget for construction of the Buildout Improvements shall not exceed Six Million Eight Hundred Forty-Three Thousand Six Hundred Dollars($6,843,600.00)in G.O. Bontl Grant funding, exdusive of a ten percent (70%) contingency, in the amount of Seven Hundred Six Thousand Four Hundred Dollars($760,400.00)to be held by the Ciry, which shall be released in accordance with Ihe terms of the G.O. Bond GrantAgreement. b. Continoencv Draws. The City shall hold In the event 7enant requests any portion of the conlingency held by the City for the Buildout Improvements,Tenant shall submit such request to Landlord tor Landlord's review and approval, which approval shall not be unreasonably withheld or delayed; provided, however, that following such request (and taking into account all prior approved contingency drawsj, no less lhan twenty percent (20%) of the original contingency line item shall remain unallocated. Notwithstanding the foregoing, once the 246 Nage 1 of 5 Buildout Improvements are at least ninety percent (90%) complete, and all associated payments have been made (excluding retainage), and sufficient funds remain in Ihe Budget to cover such retainage, the required unallocatetl contingency amount shall be reduced from twenry percent (20%)to ten percent(10%). c. Archited. The architect for the Project shall continue to be Touzet Studio, Inc.("Consultant"), subject m the City's reasonaWe approval of the contract belween Tenant and the City ("ConsuftanPs ContracC), to ensure the City's interests are protecled. Tenanf responsible for all required Architectural and Engineering ('A8E") costs. Cunently, Tenant has secured a commitment from Miami-Dade County to fund ihe A8E costs, in the amount of $250,000.00, and any A&E costs exceeding $250,000.00 shall be bome 6y the Tenant. d. Buduet. Tenant shall be responsible for providing Ihe Ciry with a budget for the entire Project ("Project BudgeY'), reflecting all Project estimated costs, including, without limitation, A8E expenses,constmction costs,and FF&E costs,for approval by the City. A current budget with the estimated costs is attached hereto as Exhibit "B". 4. Mandatary Desion Elements. The Tenant's approved design plan inGudes the following core components, subject to possible modifcations during [he developmen� process: a. Approxima[ely 3,300 sq. ft., 200.seat studio thealer ("Theater Space"), including all applicable theatrical equipment required for TenanPs use of lhe Premises; b. Approximately 2,250 sq. fl. multifunctional loungelbookstore adivalion space ("Lounge Space"); c. Approzimately 2,000 sq. ft. of ca(elrestaurant space ("Caf�/Restauran[ Space") capable of secure, independent operation 6om the remainder of the Premises, regardless o( whelher the remainder of the Premises is open to ihe public; d. Approximately 2,000 sq.ft. community education and rehearsal studio("Rehearsal Studio Space"); and e. Approximately 1,700 sq. ft. administrative offiw space ("Office Space"). 5. Additional Minimum Scooe Reauirements. In addition to ihe design elements set forth in Section 4 and more particulady described in Exhibit B-2 to lhe Lease, Tenant shall be responsible tor: a. Cafel Restaurant Buildout Contribution. The Cafe/Restauranf Space shall be construcled to be a fully operational cafA in accordance with the approved plans and shall include, at a minimum: utility for plumbing, eledrical, and HVAC; ventilalion sleeves and stmctural provisions and grease trap and hood installation, for fully operational cafe; and s�ructural elements to accommodate future wmmercial kitchen equipment installation. b. Theater and Rehearsal Studio Minimum Scooe.At a minimum,the Theater Space and Rehearsal Studio Space must be construcled as a finished, conditioned space with acoustic isolation appmpriale for pertorming arts and rehearsal activities, a resilient sprung floor system, tlimmable theatrical overhead lighting, and necessary AV infrastrucWre (e.g., sound playback and in�ercom system), to ensure Ihe space supports its intended education and public progremming function. 24� Page 3 oj5 6. Discretionary Elements. City approval of fnal construction drawings is contingent on the 7enant identifying components totaling up to 20% of the Project Budget as "non-essential." These non-essential elements are considered discretionary and may be omitted, upon mutual agreement, to accommodate cost overtuns or necessary value engineenng. 7. Theatrical Eauioment and Furniture Fixfures and Equioment IFF8E1. Theatriral Equipment (as defned herein) and FF&E-related ezpenses may be processed either as reimbursed expenses or payment issued in advance, however, any request for upfront payment is limited to an amount not to ezceetl $500,000. Theatncal Equipment shall mean any fumiture, futures and equipment for the Theater Space, necessary to accommodate a fully functioning perfortnance theater, which would inGude, without limitation, lighting, cameras, sound, aud'Rorium seating, cunains and other related theatrical improvements and personalty. FF&E shall mean any other improvements and items of personal property for the Project, which are typically purchased after substanlial completion of the Project and may include, without limita[ion, props, decorations, seating and other fumishings outside of Ihe theater(Cafe/RestauraM Space, Lounge Space, Rehearsal Stutlio Space and Office Space), dewrations, booths, tables, kitchen and Cafe related appliances and equipmenc Pnor to requesting an advance �or any Theatncal Equipment or FFBE-related expenses to be procured outside of the GMPAgreement(GMPAgreement to delineate Theatrical Equipment and FF&E included), lhe Tenant shall provide the City with an itemized list of the FF&E items to be paid from the G.O. Bond Grant Funds. Tenant shall be responsible for payment of any cosis associated with the Theatrical Equipment and FF&E which exceed the amoun� of the G.O. Bond Grant Funds. 8. Desian to Butlaet. All Project improvements shall wnform to a desigmto-budget approach, not ezceeding the approved G.O. Bond Grant Funds. This inGudes: a. PreconsWction services b. Permitting a Theatrical Equipment and Furniture, Fixtures& Equipment(FF&E) d. Art in Public Places (AIPP) contnbutions, if applicable e. LEED certifica[ion f. Survey and materials testing g. Contingency allowance h. Hard construction costs 9. Landlortl Auoroval of Desian Develooment. The Tenant shall submit the following for Landlord's review and approval: a. 30% construction drawings within 90 days of execution of the Lease amendment; b. 60%construction drewings within 90 days of approval of the 30% drawings�, c. 90%constructlon drawings within 90 days of approval of the 60% drawings; antl d. Final plans and speci£cations within 30 days of 90% drawing approval. Landloitl commenls shall be provitled within 14 calendar days after each submittal. 248 Page 4 oJ 5 10. Reuuirement for G.O Bond Grant Aareement. The G.O. Bond Grant Agreement shall include terms generelly included in a work letter to govem wnstruclion procedures, approval processes, the disbursement of the G.O. Bond Grant Funds, and other matters relatinq to Project delivery. 11. Construction Manaaer at Risk. Tenan�shall retain a Constmction Manager at Risk(CMAR) using a Guaranteed Maximum Price(GMP)contract delivery method.The CMAR shall provide both pre-construction and constmction phase services. 12 GMP Agreement. The GMP construclion coNrect between the Tenant and Contractor shall be subject to the appmval by the City of the constmction agreement belween the Tenant and the Contractor, to ensure that the City's interests are protected. The GMP constmction conlract and the schedule o( values attached thereto (collectively, the "GMP AgreemenP') shall: a. Include a contingency line item equal to 5% of Ihe total Project improvement costs; b. Not ezceed the lotal available G.O. Bontl Grant Funds for the Project improvements covered by the GMP consfruction contrecY, c. Require that ihe contractor bear any costs in axcess of the GMP Agreement�, d. Require buyout of: i. Each line item over$200,OOQ and ii. 80°/ of total Project costs prior to construction commencement. The City shall have 21 days to approve or disapprove the GMP Agreement following receipt. If no response is provided, the GMP shall be deemed approved. 13. Prioritization of Theater Soace. II is the understanding of [he Parties [hat the cu%ural elemenis of lhe Project shall be prioritized at all times. 14. Disbursement of G.O. Bond Grant Funds. Disbursement of G.O. Bond Grant Funds shall be based on approval, by the Ciry's assigned liaison, of monthly draw requests with supporting documentalion, including invoices, lien releases, contrac[or andavits, consent of surety, progress reports, progress schedule, progress photos, and other documentalion typically required in a construction Work Letter and as may also be requested by the City. 15. Pertormance and Pavment Bond. Tenant shall require its general contractor to obtain performance and payment Oonds in the (ull wntract value, issued by a surery acceptable to the Ciry. 16. Condominium. Upon approval of the final plans for Ihe construction ot the Project, the City may require that the Pioperty be converted into a condominium form of ownership. In such case, the City, at its sole cost, shall prepare a Declaretion of Condominium, subdividing the Property into separate wndominium unils, based upon the intended uses for the Project, currently anticipaled to be: a. A RestauranVCafe condominium unit; b. Parking Garage condominium uni[(s); and c. A Cul[urel Cen[er condominium unit. 249 PaRe i oj5 Tenant agrees to join in the execution of said Declaretion of Condominium if requested by the ciry. 250 Page 6 oJ 5 Ezhibits "A"- Curren[Conceptual Plan "8"—Preliminary Project Budgel "C"—Preliminary Development Timeline 251 MIAMI NEW DRAMA COLLINS PARK CULTURAL CENTER PROJECT BUDGET ESTIMATE PLANNING PHASE DRAFT PROJECT NAME: Miami New Drema Collins Park Cultural Center Interior buildout of Collins Park Garege ground floor - elements as perLease agreement and G.O.B. funding PROJECT DESCRIPTION: requirements. ITEM DESCRIPTION P�NNING PHASE PROJECT COST A. Construction Costs $ 5,104,000.00 B. Furnishings, Fixtures & Equipment $ 1,000,000.00 C. Construction Admin $ 150,000.00 D. Pre-con Management $ 100,000.00 E. Other Costs (LEED, etc) $ 10Q000.00 F. Permiting $ 150,000.00 G. CoMB Contingency $ 760,400.00 H. MiND Contingency $ 239,600.00 TOTALS: S 7,604,000.00 252 253 I' ...��.,I;:m i �': ,,,.,.... I „„ ,! ! ! � �' jj'� 1� 1� 11�� i�I Illiliiliilii'tl'i i:4i� 254 ,;;:,�,, • � �. 3_ � __ . — b •i li�i . :. .. � ;,��, .; �: �,� a� � � � � �= _ � _ . -- `� �� • . �I �� ' � ; �,�i- � .. _ ' � � : �i r e_ ; �r� � i y + r J,� �' � �S - - __ = � �I _ ., � a � � ,( ` � � , l, S � F _J . . . �� . .. • _ � �1 � I � i j _ �� i � ■ j � — � � I � ' � . e� �I : . � �3 ` ' - J J 1__ '� �- �� . � ' -r-- �� . !, ; �_ : � � 1 � . _ + �= o � 1 ' �_.�ry�. .� ,�_. ,_ zss