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Resolution 2025-33909 RESOLUTION NO. 2025-33909 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A GRANT AGREEMENT ("GRANT AGREEMENT") BETWEEN THE CITY AND MIAMI NEW DRAMA, INC. ("MIND") SUBSTANTIALLY IN THE FORM OF THE STANDARD G.O. BOND FOR ARTS 8� CULTURE GRANT AGREEMENT SPECIFYING THE TERMS AND CONDITIONS TO APPLY TO A GRANT IN THE AMOUNT OF $7.604 MILLION TO BE USED TO FUND THE CONSTRUCTION OF THE IMPROVEMENTS FOR THE COLLINS PARK CULTURAL FACILITY LOCATED IN THE CITY-OWNED COLLINS PARK GARAGE AT 340 23RD STREET PURSUANT TO THAT CERTAIN LEASE AGREEMENT DATED APRIL 18, 2022 BETWEEN THE CITY(AS LANDLORD) AND MIND (AS TENANT), SAID GRANT AGREEMENT TO BE CONSISTENT WITH THE TERM SHEET APPROVED PURSUANT TO CITY COMMISSION RESOLUTION NO. 2025-33710; APPROVING THE GRANT TO BE PAID TO MIND IN ACCORDANCE WITH THE TERMS OF THE GRANT AGREEMENT; AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE GRANT AGREEMENT IN A FORM APPROVED BY THE CITY ATTORNEY. WHEREAS, on January 27, 2021, the Mayor and City Commission waived competitive bidding and accepted an unsolicited proposal from Miami New Drama, Inc. ("MiND")for the design and buildout of approximately 16,000 square feet of ground floor space, including a 200-seat black box theater, rehearsal spaces, dressing rooms, administrative offices, and ancillary commercial uses including a restauranUcafe, within the City-owned Collins Park Garage at 340 23rd Street (the "Project"); 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 Section 1.03(b)(4) of the City Charter, requiring approval by a 4/7th vote of the Planning Board; and WHEREAS, on October 27, 2021, pursuant to Resolution No. 2021-31914, the City Commission approved the Lease Agreement, under which MiND assumed responsibility for design and architectural services, while the City undertook responsibility for financing and managing construction of the buildout, subject to MiND raising a Tenant Contribution of an estimated $250,000.00 and the appropriation of $4.75 million in City funds for the buildout (the "Landlord Contribution"); and WHEREAS, subsequent to execution of the Lease on April 18, 2022, Miami Beach voters approved the General Obligation Bond for Arts &Culture ("GOBAC") Program in November 2022, which increased the City's funding allocation for the Project to $7.67 million, formally designated by Resolution No. 2023-32713 on July 26, 2023; and WHEREAS, on August 6, 2024, MiND proposed material modifications to the Project, including assuming responsibility for construction management, and increasing the Landlord Contribution to align with the full GOBAC allocation, with the City's contribution to be restructured as a grant under the GOBAC Program; and WHEREAS, on November 8, 2024, the Finance and Economic Resiliency Committee ("FERC") recommended that the City Commission authorize the Administration to prepare both a Lease Amendment and corresponding GOBAC Grant Agreement to implement MiND's proposed terms; and WHEREAS, on June 25, 2025, the City Commission adopted Resolution No. 2025-33710, accepting the FERC recommendation, approving the Term Sheet that formalized these changes, and directing the Administration to prepare companion agreements; and WHEREAS, while the Project offers significant cultural and programmatic value in activating the Collins Park Cultural District, the revised Term Sheet includes safeguards to protect the City's financial and operational interests; and WHEREAS, the Grant Agreement shall: i. Formalize the City's approved $7.604 miliion GOBAC allocation as a project grant to MiND, with MiND assuming full responsibility for design development, permitting, construction, and construction administration of the buildout improvements. ii. Establish disbursement controls, reimbursement protocols, documentation standards, and reporting requirements. iii. Require the use of a Construction Manager at Risk (CMAR) delivery method with a Guaranteed Maximum Price (GMP) contract, value engineering allowances, and contingency limits, with any cost overruns exceeding the GMP borne by the Construction Manager. iv. Project management through a design-to-budget approach, covering preconstruction services, permitting, theatrical equipment, furniture, fixtures, and equipment(FF&E), a 10% contingency allowance, and hard construction costs, all required to remain within the established GMP. v. MiND shall remain solely responsible for all Architectural and Engineering (A&E) costs, currently estimated at no less than $240,000.00, and shall engage consultant services, including Touzet Studio and Enrique Norten/TEN Arquitectos, and other necessary consulting services. vi. Ensure City retention of Project oversight by: • Reviewing and approving design submissions at 30%, 60%, 90%, and 100% completion; • Requiring 20% of the Project Budget to be designated as discretionary funds for value engineering, as needed; and • Withholding 10% of the Grant in reserve during construction, with all grant disbursements contingent on complete draw requests and City liaison approval. vii. Include cross-default provisions linking the Grant Agreement with both the Lease Amendment and the Colony Theatre Management Agreement, thereby protecting the City's financial and operational interests. WHEREAS, for the reasons outlined in the City Commission Memorandum accompanying this Resolution, the Administration recommends that the City Commission approve the Grant Agreement, consistent with the Term Sheet approved via Resolution No. 2025-33710, and authorize the Mayor and City Clerk to finalize and execute the agreement in a form approved by the City Attorney. 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 authorize the Administration to negotiate a Grant Agreement ("Grant AgreemenY') between the City and Miami New Drama, Inc. ("MiND") substantially in the form of the standard G.O. Bond for Arts & Culture Grant Agreement specifying the terms and conditions to apply to a grant in the amount of $7.604 million to be used to fund the construction of the improvements for the Collins Park Cultural Facility located in the City-owned Collins Park Garage at 340 23rd Street pursuant to that certain Lease Agreement dated April 18, 2022 between the City (as landlord) and MiND (as tenant), said Grant Agreement to be consistent with the term sheet approved pursuant to City Commission Resolution No. 2025-33710; approve the grant to be paid to MiND in accordance with the terms of the Grant Agreement; and authorize the City Manager and City Clerk to execute the Grant Agreement in a form approved by the City Attorney. PASSED and ADOPTED this �� day of S� wt�iPr 2025. Steven Meiner, Mayor ATTEST: �a�;, _ �t� '�i"'r� ,,��.,,,,�„����� � , ,l E;t-f, � .,\P�...........1��,, :�,•�' '•.y, Rafael E. Granado, City Clerk =`:`���'"'''�• ': . i `°``�"'�"ei `: ; ��.11�C05'�UK.ATEU; : ./�,. i :^% � �..� �'j�''•. a�..a...K'��c I 4� !1)��..,.... ,_ !� 26 APPROVED AS TO FORM & LANGUAGE & FOR E CUTION �')��I �oL� City torney f'� Date Resolutions - C7 C MIAMIBEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: September 17, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE A GRANT AGREEMENT ("GRANT AGREEMENT") BETWEEN THE CITY AND MIAMI NEW DRAMA, INC. ("MIND") SUBSTANTIALLY IN THE FORM OF THE STANDARD G.O. BOND FOR ARTS 8 CULTURE GRANT AGREEMENT SPECIFYING THE TERMS AND CONDITIONS TO APPLY TO A GRANT IN THE AMOUNT OF $7.604 MILLION TO BE USED TO FUND THE CONSTRUCTION OF THE IMPROVEMENTS FOR THE COLLINS PARK CULTURAL FACILITY LOCATED IN THE CITY-OWNED COLLINS PARK GARAGE.�T 340 23RD STREET PURSUANT TO THAT CERTAIN LEASE AGREEMENT DATED APRIL 18, 2022 BETWEEN THE CITY (AS LANDLORD) AND MIND (AS TENANT), SAID GRANT AGREEMENT TO BE CONSISTENT WITH THE TERM SHEEI APPROVED PURSUANT TO CITY COMMISSION RESOLUTION NO. 2025-33710;APPROVING THE GRANT TO BE PAID TO MIND IN ACCORDANCE WITH THE TERMS OF THE GRANT AGREEMENT; AND AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE GRANT AGREEMENT IN A FORM APPROVED BY THE CITY ATTORNtY. RECOMMENDATION The Administration recommends that the Mayor and City Commission adopt the attached Resolution authorizing the negotiation, preparation, and execution of a General Obligation Bond for Arts 8� Culture (GOBAC) Grant Agreement with Miami New Drama, Inc. (MiND), in connection with the amendment of the City's lease agreement with MiND for the Collins Park Cultural Facility. The lease amendment is being considered under a separate companion item. The Grant Agreement will: 1. Formalize the City's approved $7.604 million GOBAC allocation as a project grant to MiND. 2. Establish clear proc�dures for construction management, budgetary controls, and performance standards, consistent with the Term Sheet approved under Resolution No. 2025-33710. 3. Incorporate safeguards that, together with the Lease Amendment, protect the City's financial investment, including disbursement controls, documentation standards, cross- default provisions, and other elements typically found in a work letter agreement. BACKGROUND/HISTORY Proiect Oriqin In January 2021, through Resolution No. 2021-31568, the City Commission waived competitive bidding to accept an unsolicited proposal from MiND for the buildout of approximately 16,000 square feet of ground floor space in the City-owned Collins Park Garage. MiND's proposal envisioned transforming the space into a primary performance venue and headquarters, including 220 of 1214 a 200-seat black box theater, rehearsal and administrative spaces, dressing rooms, and ancillary commercial uses such as a restauranUcafe. In October 2021, the City Commission approved the initial Lease Agreement (Resolution No. 2021-31914), under which MiND funded design services while the City assumed responsibiliry for financing and managing construction. GOBAC Fundinp Enhancement In November 2022, Miami Beach voters approved the GOBAC Program, increasing the City's allocation for the project to $7.67 million. The funds were formally appropriated in July 2023 (Resolution No. 2023-32713). Transition to Tenant-Led DeliverY Model In August 2024, MiND proposed shifting construction management from the City to the Tenant, converting the City's financial contribution into a GOBAC Program grant. This proposal was reviewed and recommended by the Finance and Economic Resiliency Committee (FERC) in November 2024. On June 25, 2025, the City Commission adopted Resolution No. 2025-33710, approving a Term Sheet authorizing the proposed changes and directing the preparation of companion agreements: a Lease Amendment and a corresponding GOBAC Grant Agreement. The lease �mendment is being considered by the City Commission under a companion item. ANALYSIS The Collins Park Cultural Facility is envisioned as a cornerstone of the Collins Park Cultural District, offering year-round performances, educational programming, and community activations. Transitioning to a grant-based funding mode! reflects a shift from City-managed construction to a tenant-led delivery structure, aligned with MiND's track record at the Colony Theatre. Kev Elements of the Grant Aqreement • Risk Mitigation: Reimbursement protocols, documentation standards, and compliance reporting to safeguard City funds. • Design Oversight: City approval of design milestones at 30%, 60%, 90%, and final construction documents. • Construction Controls: Required use of a Construction Manager at Risk (CMAR) with a Guaranteed Maximum Price (GMP) to control costs. • Value Engineering: Identification of discretionary budget elements to allow for cost adjustments if needed. • Disbursement Procedures. Increriental grant disbursements tied to verified work completion and City approval. • Cross-Default Protections: Contractual linkage of the Grant Agreement to both the Lease Amendment and the Colony Theatre Management Agreement, to ensure continued performance across MiND's obligations. These provisions aim to balance efficiency and accountability, granting MiND autonomy to manage construction while ensuring the City retains oversight of budget, schedule, and quality. FISCAL IMPACT STATEMENT 221 of 1214 The City's financial contribution to the Project is $7.604 million in GOBAC funds (already appropriated). MiND is responsible for architectural and engineering services, estimated at approximately $250,000. Safequards and Reserves • A 10% holdback of grant funds will be retained by the City until project completion. • 5% contingency reserve is built into the GMP. • All disbursements require City approval to ensure alignment with the approved budget and milestones. Does this Ordinance repuire a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https:llwww.miamibeachfl.qovlcity-hall/city-clerk/meetinq-notices/ FINANCIAL INFORMATION N/A CONCLUSION Thc Collins Park Cultural Facility represents a transformative investme�it in Miami Beach's arts and cultural infrastructure. Converting the City's GOBAC allocation into a structured Grant Agreement, with robust safeguards, supports MiND's ability to deliver the project efficiently while protecting public resources. The Administration therefore recornmends that the Mayor and City Commission adopt the attached Resolution, authorizing the negotiation, preparation, and execution of the GOBAC Grant Agreement with Miami New Drama, consistent with the approved Term Sheet and subject to legal review by the City Attorney. Applicable Area South Beach Is this a "Residents Riqht to Know" item, Is this item related to a G.O. Bond pursuant to Citv Code Section 2-17? Proiect? Yes Yes Was this Aqenda Item initiallv reQuested bv a lobbvist which, as defined in Code Sec. 2-481, includes a principal enqaped in lobbvinq? Yes If so, specify the name of lobbyist(s)and principal(s): Miami New Drama, Inc. /Nicholas Richberg Department Economic Development Sponsor(s) 222 of 1214 Co-sponsor(s) Condensed Title Approve G.O. Bond Art and Culture Grant Agreement, Miami New Drama Collins Park Culturai Facility. ED Previous Action (For Citv Clerk Use Onlv) 223 of 1214