98-22789 RESO
RESOLUTION NO.
98-22789
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA AUTHORIZING THE
IMPLEMENTATION OF PHASES I AND II OF
THE 41ST STREET BEAUTIFICATION
PROJECT AND AUTHORIZING THE
ADMINISTRATION TO PURSUE A LOAN
AGREEMENT WITH COLONIAL BANK TO
FINANCE THE COST OF THE PHASE I AND
PHASE II OF THE PROJECT
WHEREAS, in September 1995, a master plan for this project was completed by
the Curtis and Rogers Design Studio, Inc. and the Savino and Miller Design Studio and
following an extensive community planning process; and
WHEREAS, in May 1996, the City Commission appropriated $5 million for the
Beautification of 41 st Street; and
WHEREAS, in June 1997, the City Commission approved an agreement with
Consul-Tech Engineering, Inc. for architecture and engineering services; and
WHEREAS, the Finance and Citywide Projects Committee has reviewed the plan
and has recommended that Phase I and Phase II of the project be implemented and that
the appropriation for such project be reduced to $1,727,250; and
WHEREAS, the Finance and Citywide Projects Committee also directed that a
financing strategy for such project be developed.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, as follows:
1. The Administration is hereby authorized to implement Phase I and Phase II of the
41 st Street Beautification Project.
2. The Administration is hereby authorized to pursue a loan agreement with Colonial
Bank to finance the cost of Phase I and Phase II of the 41 st Street Beautification Project,
in an amount not to exceed $1,727,250.00, over five years at a rate not to exceed 4.6%,
to pledge fifty percent (50%) of the Middle Beach allocation of the one percent (1 %) Resort
Tax to secure said loan and to engage the City's bond counsel, Squire, Sanders &
Dempsey.
3. The Administration is further directed to reduce the appropriation for said project to
$1,727,250.
4. The Mayor, City Manager, City Clerk, and all other City officers and employees are
hereby authorized to execute all documents necessary to procure the above described
loan and to take all actions necessary to carry out the provisions of this Resolution.
PASSED AND ADOPTED THIS 17th DAY OF June 1998.
1tJ,
Mayor
Attest:
~J- rCUck--
City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~
6(1c!, R:
Date
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,TY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
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;ITY OF MIAMI BEACH
COMMISSION MEMORANDUM NO. 3<1 <6 - 9 ~
TO:
FROM:
Mayor Neisen O. Kasdin and DATE: June 17, 1998
Members of the City co~s 'on
Sergio Rodriguez /;;.
Citv Manager )
TWO RESOv6~ NS OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA APPROVING AND AUTHORIZING
THE MAYOR AND CITY CLERK TO A) IMPLEMENT THE FINANCING
OF PHASE I AND PHASE II OF THE 41ST STREET BEAUTIFICATION
PROJECT; AND B) USE THE REALLOCATION OF CDBG FUNDS IN THE
AMOUNT OF $132,210 FROM THE 41ST STREET COMMERCIAL
FACADE PROGRAM AS ENHANCEMENT FINANCING FOR THE 41ST
STREET BEAUTIFICATION PROJECT.
SUBJECT:
,.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution in item A, and provide policy direction to the Administration with regard to
item B. If the funds are to remain with the 41st Street area, then resolution item B should also be
adopted.
BACKGROUND
The two Resolutions on the 41 st Street Beautification Project complement each other in that
Resolution (A) describes the financing strategy for the project; and Resolution (B) provides the
Commission with the opportunity to consider using CDBG funding to enhance the financing.
The 41st Street Beautification project was adopted by the City Commission by resolution on May
1, 1996. A Master Plan for the project was prepared in conjunction with an extensive community
planning process. However, due to funding limitations and at the direction of the Finance/Citywide
Projects Committee, a revised scope of service was done to refine the elements of the Master Plan
and reduce the cost of construction.
ANALYSIS
The first Commission Memorandum and Resolution (A) renect the proposed financing schedule to
begin phases I and II of the 41st Street Beautification project. The second Commission
Memorandum (B) identifies CDBG funding in the amount of $132,210 which was originally
earmarked for the 41 st Street Commercial Facade [mprovement program, that can be used to further
enhance the financing strategy for the 41 st Street Beautification project consistent with the Master
Plan.
AGENDA ITEM ~ Ie
DATE 0-1/-9 ~
COMMISSION MEMORANDUM
JUNE 17, 1998
PAGE 2
The use of these funds for this project is in an eligible CDBG target area and would enhance the
financing already proposed.
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the attached
Resolutions approving and authorizing the Mayor and City Clerk to implement the financing of
phase I and phase II of the 41 st Street Beautification project, item (A); and provide policy direction
to the Administration as to the use of the funds in either the 41 st Street area or other eligible target
areas.
SRJ~RM/a~
T.\AGENDAVUN 1798\CONSE:-Jn~ I ST:\ISTR HS\1
;'
~ITY OF MIAMI BEACH
ITV HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
.tp:\\ci. miami-beach. fl. us
COMMISSION MEMORANDUM NO.
S18 ~ crS(f1)
TO:
Mayor Neisen O. Kasdin and
Members of the City Cni:sion
Sergio Rodriguez
City Manager
DATE: June 17, 1998
FROM:
SUBJECT:
A RESOLU ON AUTHORIZING THE IMPLEMENTATION OF PHASES
I AND II OF THE 41ST STREET BEAUTIFICATION PROJECT AND
AUTHORIZING THE ADMINISTRATION TO PURSUE A LOAN
AGREEMENT WITH COLONIAL BANK TO FINANCE THE COST OF
PHASE I AND PHASE II OF THE PROJECT.
,,'
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
FUNDING:
This project will be funded by an appropriation of 50% of the Middle Beach share of the 1 % Resort
Tax.
BACKGROUND:
The Master Plan for this project was prepared by Curtis and Rogers Design Studio, Inc. and Savino
and Miller Design Studio, in September of 1995, after an extensive community planning process.
On May 1, 1996, the City Commission adopted a resolution appropriating $5 million for the 41 st
Street Beautification Project. At that time, it was anticipated that the City would obtain a bank loan
for the project and pledge 50% of the annual allocation to Middle Beach from the 1% Resort Tax
to repay the loan over six years. During the first year of this tax, approximately $2,400,000 was
collected. Of this amount, 50% was allocated equally among North Beach, Middle Beach, and
South Beach in an amount of approximately $400,000 for each area on an annual basis. The
remaining 50% was pledged to pay the debt service on the RDA - City Center Bonds until their
retirement in the year 2022. As only 50% of the Middle Beach amount was to be used for the
repayment of the bank loan, funding a $5 million project was not considered feasible.
AGENDAITEM ~/C(~A ')
DATE ~-I/-9 g
On June 4, 1997, the City of Miami Beach entered into an agreement with Consul-Tech Engineering,
Inc. for architectural/engineering services for the 41 st Street Beautification Project. Because of
funding limitations, the scope of work was subsequently revised to refine elements of the master plan
and the estimated cost of construction was reduced to $3.3 million.
On February 4, 1998, this project was referred to the Finance and Citywide Projects Committee for
evaluation of the Design Development report. The Finance and Citywide Projects Committee
reviewed the project at their March 12, 1998 meeting. The Committee recommended that only a
portion (Phases I and II, see attached phasing schedule) of the project be referred to the full
Commission along with a proposed financing strategy.
ANAL YSIS:
The cost of Phase I and II, of the project is estimated at $1,727,250. This amount includes
$1,527,250 for the construction of Phase I and II, and $200,000 for architectural and engineering
fees.
Funds allocated to the project total $202,000 for FY 96-97, and $232,000 projected to be received
,
during FY 97-98. Using a cost of$1,727,250, and revenues expected to date of$434,000, we will
need to borrow approximately $1,294,000.
Bart Goldberg, Chairman of Colonial Bank, South Florida Region, has offered to provide tax exempt
financing for this project to the City over a 5-year period at a rate not to exceed 4.6%. The annual
payments will be determined based on the resort tax amounts that are collected annually. This
proposal has been reviewed by our financial advisor Percy Aguila, of Dain Rauscher, who concurs
that the proposal is consistent with rates available to the City in the current financial market for this
type of financing.
The interest on this loan will be exempt from Federal income taxation and the Bank will require a
legal opinion to such effect. It is, therefore, necessary that the City's bond counsel, Squire, Sanders
& Dempsey, be engaged to assist in procuring the loan.
CONCLUSION:
It is recomrnended that the Commission approve the implementation of Phase I and Phase II of the
proposed project. Further, it is recommended that the Commission authorize the Administration
to pursue the proposed financing arrangement with Colonial Bank to support the beautification of
41 s~et.
SRJPDW/cp
41st J3EAUTIFICA TION PROJECT
PHASING AL TERNA TIVE
Section Description Amount --
Phase I 9.0 Landscaping and Irrigation- @ sidewalks $497,059
2.0 Replace concrete pavers $195,000
Sub-Total S692,059
Mobilization/Mot $60,000
S752,059
10% Contingency $75,206
TOTAL PHASE II S827 ,265
Phase II 1.0 Median construction (minus $77,480 for WM relocation) $31,309
9.0 Landscaping and Irrigation @ medians $96,255
11.00 Uplighting @ medians $283,194
9.0 Landscaping and Irrigation w/o Alton Road $147,000
6.0 Crosswalk restriping $18,592
Sub-Total S576,350
Mobilization/Mot $60,000
S636,350
10% Contingency $63,635
TOTAL PHASE III S699,985
PhaS'e III 10.0 Architectural Components
- Covered walkway (Indian Creek Bridge) $100,000
- Pavilions (Indian Creek Bridge) $200,000
- Flag Garden (Biscayne Bridge) $27,000
9.0 Landscaping @ Indian Creek Bridge $64,180
4.0 Indian Creek Bridge Modification $104,836
3.0 Biscayne Bridge Modification $32,760
5.0 Intersection @ Indian Creek $7,725
11.00 Flag Garden lighting (Biscayne Bridge) $17,082
11.00 Indian Creek Bridge lighting
Deck, underdeck, pavilion $237,184
Sub-Total S790,767
Mobilization/Mot $60,000
S850,767
10% Contingency $85,On
TOTAL PHASE 1111 S935,844
Phase IV 7.0 Side street improvements $45,251
8.0 Street reconstruction
- (Chase south side only) $31,156
- Indian Creek to Collins $35,428
- Collins to Boardwalk $23,415
9.0 Landscaping and Irrigation @ side street $36,640
11.0 Lighting - Indian Creek to Boardwalk $92,173
Sub-Total S264,063
Mobilization/Mot $60,000
$324,063
10% Contingency $32,406
I $356,469
Add 40th & 42nd Street $450,000
TOTAL PHASE IV I S806,469
GRAND TOTAL $3,269,563
- Irrigation needs replacing - per Kevin Smith
- As provided in Design Development Report
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