LTC 134-2006 Letter of Interest - Economic Development
~ MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 134-2006
LETTER TO COMMISSION
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
lfY
DATE: May 15, 2006
SUBJECT: Letter of Interest Submitted to Miami-Dade County in Connection with the Building
Better Communities General Obligation Bond Economic Development Fund (EDF)
for City Projects
I am pleased to advise you that the City of Miami Beach has submitted Letters of Interest for
funding under the Building Better Communities General Obligation Bond Economic
Development Fund (EDF) for two City projects: 1) Renovation of the Jackie Gleason Theater
of The Performing Arts for a permanent venue for Cirque Du Soleil; and, 2) Retail
Development Project at Alton Road and 5th Street.
The EDF is a component of the fifteen-year Building Better Communities General Obligation
Bond Program (GOB) and is availalble for the purpose of providing infratructrue
improvements to spur economic development and attract new buisinesses to the community.
The EDF includes $75 million that is available countywide and $15 million that is specifically
focused on the county's designated Targeted Urban Areas (TUAs).
The projects and descriptions are as follows:
1. Renovation of the Jackie Gleason Theater of The Performing Arts for a permanent
venue for Cirque Du Solei I
This is a significant joint venture economic development project of regional, even statewide
significance, which includes a complete renovation of the Jackie Gleason Theater of the
Performing Arts for a permanent venue for Cirque Du Solei!. The proposed renovated
theater will include a show restaurant of approximately 250 seats, a lounge area to service
the restaurant, and a special event/live entertainment venue. The final product will reflect
Cirque's signature creative, unique and high quality approach. The project will create a new,
world-class entertainment alternative that continues to support Greater Miami's expansion
into new and existing markets.
A recent feasibility study conducted by Conventions Sports & Leisure, a leading advisory and
planning firm that specializes in services to the sports. entertainment and leisure industries,
anticipates that the project will generate annual net new direct spending of over $50 million,
and create over 850 private sector jobs.
The total project cost is estimated at approximately $150 million and will leverage as much
as $70-80 million in private sector funding. The City has requested EDF funding in the
amount of $15 million.
2. Retail Development Project at Alton Road and 5th Street
This is a $65 million joint venture project that will activate the western end of Fifth Street, the
primary transportation route to and from the City of Miami Beach, by providing shopping
alternatives that are in high demand by, but currently unavailable to, the existing consumer
population. The project contains approximately 179,000 square feet of vertical retail area,
which includes a full-service supermarket and parking garage.
The project will spur economic development, attract new businesses to our community,
leverage approximately $52 million in private sector investment, create over 500 new jobs,
redevelop a brownfield, reduce traffic congestion, and provide a much needed full-service
supermarket for the neighborhood.
The total development cost is estimated at approximately $65 million. Amount requested
from EDF: $5 million.
Both projects are of importance to the City of Miami Beach, and Miami-Dade County. The
County has already received requests in excess of the available funding and, the County's
Economic Development Review Committee, tasked with reviewing and recommending
projects for funding recently met to commence the review offunding requests and to discuss
the establishment of guidelines for the EDF program and funds, and to determine a method
for evaluating and prioritizing proposals.
Please feel free contact me at (305) 673-7010 if you need additional information.
JMG/KC/~
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