Loading...
HomeMy WebLinkAbout2005-25900 Reso RESOLUTION NO. 2005-25900 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING THE REQUIRED ART IN PUBLIC PLACES APPROPRIATION, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, FOR THE PROJECT, PRESENTLY REFERRED TO AS "FIFTH AND ALTON", CONTAINING APPROXIMATELY 179,000 SQUARE FEET OF RETAIL AREA; A SUPERMARKET; AN APPROXIMATELY 1,081 SPACE PARKING GARAGE; PARK AND RIDE TRANSIT FACILITY, INCLUDING AN INTERMODAL/TRANSPORTATION COMPONENT; AND SURROUNDING STREETSCAPE AND PUBLIC INFRASTRUCTURE TO SERVE THE PROJECT, BOUNDED BY LENOX AVENUE ON THE EAST, ALTON ROAD ON THE WEST, 6TH STREET ON THE NORTH, AND FIFTH STREET ON THE SOUTH, IN MIAMI BEACH; FURTHER MAKING SAID WAIVER SUBJECT TO AND CONTINGENT UPON THE DEVELOPER'S AGREEMENT AND COMMITMENT TO INSTALL A MAJOR PIECE OF ART AT THE ENTRANCE OF THE PROJECT BY ARTIST ROMERO BRITTO, WHICH THE DEVELOPER HAS VALUED AT $500,000; AND, AS FURTHER CONSIDERATION FOR THE WAIVER, TAKING INTO CONSIDERATION A REPRESENTATION BY MR. AND MRS. ALAN POTAMKIN THAT THEY HAD PREVIOUSLY PROMISED GIFTS TO THE BASS MUSEUM OF ART, (WHICH DONATED WORKS THE DEVELOPER REQUESTED BE CONSIDERED IN THE REQUEST FOR WAIVER). WHEREAS, on June 7, 2000, the Mayor and City Commission adopted Resolution No. 2000-23963, designating the area bounded by 6th Street to the north, 5th Street to the south, Alton Road to the west and Lenox Avenue to the east, as a Brownfield area to promote the environmental restoration and economic redevelopment ofthe area; and WHEREAS, since July 2002, the Administration has been meeting with representatives of the site, generally located on 5th Street and Alton Road, owned by the Potamkin family, to address a joint development opportunity and to review a preliminary site plan for a five (5) level mixed-use retail complex, including a public parking garage and a supermarket (the Project); and WHEREAS, in accordance with the City Commission's directive and the community's identified needs, the City's interest in the Project's development was primarily focused on achieving the public benefit of locating a supermarket, exploring transit and excess parking opportunities, and developing a gateway project at one of the City's main arterial entryways; and WHEREAS, accordingly, the City and Developer have negotiated a Development Agreement governing the parties' respective rights and obligations with respect to the design, development and construction of the Project; and WHEREAS, the Mayor and City Commission approved the Development Agreement on First Reading at its regular meeting on April 20, 2005, and set the Second (and final) Public Hearing for May 18,2005; and WHEREAS, concurrent with the Second and final reading of the Development Agreement at the Second Public Hearing on May 18, 2005, the Developer has requested, as permitted by Section 82-587(c)(1) of the City Code, that the Mayor and City Commission waive the required Art in Public Places (AIPP) appropriation for the Project, finding such waiver to be in the best interest ofthe City; and WHEREAS, the City's current AIPP legislation, as codified in Chapter 82, Article VII, Division 1, Sections 82-536 through 82-612 of the City Code, requires that construction projects that are developed by persons or entities other than the City, but which, as in the case of the Project, require the participation of the City as a party to a Development Agreement are subject to and shall require an appropriation of funds to the AIPP fund, in an amount not less than I ~% of the construction cost of the entire Project; and WHEREAS, although Developer's Project falls within this requirement, as stated herein, the Developer may request a waiver of the required AIPP appropriation, pursuant to Section 82- 587(c)(1) ofthe City Code; and WHEREAS, the Developer has requested a waiver of its required AIPP contribution and, as consideration for same, has committed and agreed to install a major piece of art at the entrance of the Project (as depicted in the Project Concept Plan) by local artist Romero Britto, which the Developer has valued at $500,000; and WHEREAS, one of the Developer's principals, Mr. Alan Potamkin, has also represented to the City that he had previously promised gifts of art to the Bass Museum of Art, and the Developer has requested that this proposed donation also be taken into consideration in support of its request for the AIPP waiver; and WHEREAS, the Administration has calculated that the estimated AIPP contribution for the Project would be approximately $490,000, based on an estimated $32,000,000 Project cost; and WHEREAS, on January 18, 2005, the Developer made a presentation to the AIPP Committee, with regard to its proposed request for waiver; at that time the AIPP Committee, in its advisory capacity, adopted a motion approving the waiver, conditioned upon the Developer working with the Committee to select an appropriate artist and the location of the artwork; and WHEREAS, on February 4, 2005, the Cultural Arts Council (CAC) approved a motion requesting that the AIPP Committee reconsider its motion approving the Developer's request for a waiver of the AIPP contribution; and WHEREAS, at its next regular meeting on February 15, 2005, the AIPP Committee made a motion to reconsider its original motion, conditionally granting Developer's request for waiver of the AIPP contribution and, upon reconsideration, voted to recommend denial of Developer's waiver request; the Committee further moved to ask the City Commission to direct the Developer to work with it to select the appropriate artist and location of artwork on the Project; and WHEREAS, the Developer's request for waiver of the AIPP contribution was discussed at the public hearing which approved the Development Agreement on First Reading, at the City Commission meeting of April 20, 2005; and WHEREAS, at that time, the City Commission heard and considered testimony from members of the public, the Chairperson of the AIPP Committee, and the Developer; the artist Romero Britto was also present at said public hearing; and WHEREAS, as a request for waiver of a required AIPP appropriation must be approved by Resolution, the Administration now brings this Resolution regarding Developer's request for a waiver of the required AIPP appropriation for the Project concurrent with the Second (and final) reading of the Development Agreement, held at the public hearing duly noticed and held during the City Commission's regular meeting on May 18,2005. 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 waive the required Art In Public Places appropriation, finding such waiver to be in the best interest of the City, for the Project, presently referred to as "Fifth and Alton", containing approximately 179,000 square feet of retail area; a supermarket; an approximately 1,081 space parking garage; park and ride transit facility, including an intermodal/transportation component; and surrounding streetscape and public infrastructure to serve the Project, bounded by Lenox Avenue on the East, Alton Road on the West, 6th Street on the North, and Fifth Street on the South, in Miami Beach; further making said waiver subject to and contingent upon the Developer's Agreement and commitment to install a major piece of art at the entrance of the Project by artist Romero Britto, which the Developer has valued at $500,000; and, as further consideration for the waiver, taking into consideration a representation by Mr. and Mrs. Alan Potamkin that they had previously promised gifts to the Bass Museum of Art, (which donated works the Developer requested be considered in the request for waiver). PASSED and ADOPTED this 18th day of May , 2005 A'{TEST: . ~I.TY~CLEllK . R<1bert'Parcher ~~f (),t~ David Dermer P:\atto\AGlJR\RESOS-ORD\Potamkin - Art in Public Places - Romero Britto Reso,doc APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~r;-/J;," 0$ ~ CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY lQ -.::;;;;;;;F Condensed Title: A Resolution waiving the required Art in Public Places appropriation, finding such waiver to be in the best interest of the City, for the project commonly known as "Fifth and Alton", making said waiver subject to and contingent upon the develo er's a r ement and commitment to install a ma'or iece of art which the develo er has valued at $500,000. Issue: Shall the ayor and City Commission grant the developer's request for a waiver of the project's required Art in Public Places contribution? Item Summary/Recommendation: The City Commission approved on first reading a Development Agreement between the City and AR&J Sobe, for the development of a project known as "Fifth and Alton", containing approximately 179,000 square feet of retail area, a supermarket, a 1,081 space parking garage, a park and ride facility, and surrounding streetscape and public infrastructure to serve the project. Related to the Development Agreement, is the required contribution from the Project to Art in Public Places (AiPP). The present AiPP Ordinance requires all City projects to make a financial contribution to support ongoing and future operations and acquisitions ofthe City's AiPP program. The most common application for the Ordinance has been to City projects that are City-owned and constructed, however, the Ordinance also pertains to Capital Construction Projects where the City is a partner, therefore this project falls under the Ordinance. A decision will need to be made as to whether or not to waive the Project's AiPP contribution, The Developer has continually maintained that he will not entertain funding any portion of the AiPP fee, if a waiver is not granted, Instead, Developer has committed to install a major piece of art at the entrance of the project, and Mr. and Mrs. Alan Potamkin have represented that they have promised gifts to the Bass Museum. The Administration recommends that the Mayor and City Commission resolution granting the requested Art in Public Places waiver. Adviso Board Recommendation: Finance & Citywide Proiects Committee: February 14. 2005 - recommendation to proceed in finalizing the Development Agreement. Desian Review Board & Historic Preservation Board - August 17, 2004 - Project Approved AiPP. January 18. 2005 - motion to grant the requested waiver; February 15. 2005 - motion granting the waiver was reconsidered and the Committee recommended that the re uested waiver not be ranted. Financial Information: Source of ACCount Funds: I Finance Dept. City Clerk's Office Legislative Tracking: I Kevin Crowder Si n-Offs: 05IRegularIPotamkin,SUM,doC AGENDA ITEM DATE 1~7L ::-.-(g-oS- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov To: From: COMMISSION MEMORANDUM Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez 1 A n ~O - ~ City Manager ...J"v'\ ~ Date: May 18, 2005 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, WAIVING THE REQUIRED ART IN PUBLIC PLACES APPROPRIATION, FINDING SUCH WAIVER TO BE IN THE BEST INTEREST OF THE CITY, FOR THE PROJECT, PRESENTLY REFERRED TO AS "FIFTH AND ALTON" , CONTAINING APPROXIMATELY 179,000 SQUARE FEET OF RETAIL AREA; A SUPERMARKET; AN APPROXIMATELY 1,081 SPACE PARKING GARAGE; PARK AND RIDE TRANSIT FACILITY, INCLUDING AN INTERMODAUTRANSPORTATION COMPONENT; AND SURROUNDING STREETSCAPE AND PUBLIC INFRASTRUCTURE 'TO SERVE THE PROJECT, BOUNDED BY LENOX AVENUE ON THE EAST, ALTON ROAD ON THE WEST, 6TH STREET ON THE NORTH, AND FIFTH STREET ON THE SOUTH, IN MIAMI BEACH; FURTHER MAKING SAID WAIVER SUBJECT TO AND CONTINGENT UPON THE DEVELOPER'S AGREEMENT AND COMMITMENT TO INSTALL A MAJOR PIECE OF ART AT THE ENTRANCE OF THE PROJECT BY ARTIST ROMERO BRITTO, WHICH THE DEVELOPER HAS VALUED AT $500,000; AND, AS FURTHER CONSIDERATION FOR THE WAIVER, TAKING INTO CONSIDERATION A REPRESENTATION BY MR. AND MRS. ALAN POTAMKIN THAT THEY HAD PREVIOUSLY PROMISED GIFTS TO THE BASS MUSEUM OF ART, (WHICH DONATED WORKS THE DEVELOPER REQUESTED BE CONSIDERED IN THE REQUEST FOR WAIVER). ADMINISTRATION RECOMMENDATION Subject: Approve the Resolution. The recommendation is in consideration of the Developer's intent to install a major piece of art in this project and the commitment from Mr. and Mrs. Alan Potamkin to donate gifts to the Bass Museum of Art. ANALYSIS On June 7,2000, the Mayor and City Commission adopted Resolution No. 2000-23963 designating the area bounded by 6th Street to the North, 5th Street to the South, Alton Road to the West and Lenox Avenue to the East (also known as the "Potamkin Site"), as a Brownfield area to promote the environmental restoration and economic redevelopment of the area. Mary 18, 2005 City Commission Memorandum Potamkin/Berkowitz - Art in Public Places Waiver Page 2 of 4 Since July 2002, the Administration has been meeting with representatives of the site generally located on 5th Street and Alton Road, owned by the Potamkin family, to address a joint development opportunity and to review a preliminary site plan for a five (5) level mixed-use retail complex, including over 900 parking spaces and a supermarket. In accordance with the City Commission's directive and the community's identified needs, the City's interest in the project development was primarily focused on achieving the public benefit of locating a supermarket, exploring transit and excess parking opportunities, and developing a gateway project at one of the City's main arterial entryways. Concurrent with the negotiations, the Potamkin/Berkowitz group has received approval to implement a signage overlay district to permit effective signage for the Supermarket and for the retail tenants within the Project and the project has also received DRB/HP approval. Art in Public Places Related to the Development Agreement, is the required contribution from the Project to Art in Public Places (AiPP). The present AiPP Ordinance requires all City projects to make a financial contribution to support ongoing and future operations and acquisitions of the City's AiPP program. The most common application for the Ordinance has been to City projects that are City-owned and constructed, however, the Ordinance also pertains to Capital Construction Projects where the City is a partner, therefore this project falls under the Ordinance. This project is the first instance where a public/private joint development will come under the AiPP Ordinance, which was revised in 2001 to include such agreements. At the time of the revision, it was contemplated that those projects where the City was the landowner, such as Lincoln Place and The Lincoln, would be affected. In this instance, however, the City is not, and will not be the landowner. The City is essentially acquiring an interest in certain elements of the project through a condominium instrument. The Developer has requested a waiver of the AiPP obligation pursuant to the provisions of the Ordinance. A decision needs to be made as to whether or not to waive the Project's AiPP contribution. The Developer has continually maintained that he will not entertain funding any portion of the AiPP fee, if a waiver is not granted. In consideration of this request for waiver, the Developer is committing to install a major piece of art at the entrance of the project (as depicted in the Project Concept Plan) by local artist Romero Britto, which the Developer has valued at $500,000. Furthermore, Mr. and Mrs. Alan Potamkin have represented that they had previously promised gifts to the Bass Museum of Art, and Developer has requested that this proposed donation also be taken into consideration in support of its request for the AiPP waiver. The estimated AIPP contribution would have been approximately $490,000, based on an estimated $32,000,000 project cost. If the Project were developed without public participation, no Art in Public Places contribution would be required. As referenced in the Development Agreement and above, the City has advised that the proposed project constitutes a public joint development, and that the AIPP 1 %% will apply to the Project construction cost. If the AIPP is not waived, according to the Developer, it will render this transaction economically infeasible and he has stated that he will not contribute to the fee. Mary 18, 2005 City Commission Memorandum Potamkin/Berkowitz - Art in Public Places Waiver Page 3 of 4 On January 18, 2005, the Developer made a presentation to the AiPP Committee, which adopted a motion approving the waiver conditioned upon the Developer working with the AiPP Committee to select the appropriate artist and location of artwork. On February 4, 2005, the Cultural Arts Council approved a motion requesting that the AiPP Committee reconsider their recommendation to waive the 1.5% AiPP requirement for this project, and further that CAC representatives attend the AiPP Committee's reconsideration. The motion further stated that the Cultural Arts Council opposed waiving the AiPP requirement. This issue was discussed at the February 14, 2005 Finance and Citywide Projects Committee meeting; however, following the Finance and Citywide Projects Committee meeting, the AiPP Committee reconsidered this item on February 15, 2005, pursuant to the request of the Cultural Arts Council, and voted to recommend denial of the waiver and further moved to ask the City Commission to direct the Developer to work with the AiPP Board to select the appropriate artist and location of artwork. The Committee was concerned that the purpose of the revisions to the Ordinance was to build the AiPP fund, and that this request would set a precedent for future requests that would be contrary to the original intent of the revisions. The Developer expressed his intent, as reflected in the development agreement, to proceed with the Britto artwork and waiver request despite AiPP's motions. At the April 20, 2005 City Commission meeting, the request for waiver was discussed at the public hearing for the first reading of the Development Agreement. At this meeting, the Mayor and City Commission heard and considered testimony from members of the public, the Chairperson of the Art in Public Places Committee, and the Developer. As part of the Resolution approving the Development Agreement on first reading, the Mayor and City Commission further directed the Administration to prepare a resolution waiving the project's required Art in Public Places contribution, to be heard concurrent with the second reading of the Development Agreement. On April 20, 2005, the Mayor and City Commission adopted Resolution No. 2005-25880, approving the development agreement on first reading and directing staff to prepare a resolution waiving the project's required Art in Public Places contribution, to be heard concurrent with the second reading of the Development Agreement. CONCLUSION Although the Developer has continually maintained that he will not fund any portion of the Art in Public Places fee, there remain many compelling reasons supporting the City's participation in this project and the Commission's granting of the requested waiver of the Art in Public Places contribution. The City has no land cost associated with the construction of a park and ride facility at the entrance to the City, and risk is eliminated by the Developer's Guaranteed Maximum Price. Also, the Developer is constructing the project, rather than the City, and the City will operate the facility. The City expects to utilize a portion of Federal Transit Administration funding that has been awarded to the City. This project will activate the western end of Fifth Street, redevelop a designated brownfield, create over 500 jobs, and attract retail stores that do not currently exist in Miami Beach, as well as secure a five-year community request through the establishment of a supermarket Mary 18, 2005 City Commission Memorandum Potamkin/Berkowitz - Art in Public Places Waiver Page 4 of 4 in that neighborhood. Ultimately, the City will have a facility that accomplishes the items previously listed, with a risk-free investment with secured delivery of the project. If at some point in the future the Developer exerc.ises his termination rights, the end result will be the return of the City's investment plus a minimum of 4% interest, a more likely return based on fair market value, and the facility and the majority of the identified benefits will still be in place. It should also be considered that the Developer has committed to install a major piece of art in this project and Mr. and Mrs. Alan Potamkin have represented that they had previously promised gifts to the Bass Museum of Art. Therefore, the Administration recommends that the Mayor and City Commission approve the attached resolution and grant the requested waiver of the Art in Public Places contribution for this project, concurrent with the second reading of the Development Agreement. JMGITH/kc T:\AGENDA\2005\May1805\RegularlPotamkinAIPP. MEM.doc