543-2007 RDA Reso
RESOLUTION NO. 543-2007
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA) APPROVING AND
AUTHORIZING AN INITIAL APPROPRIATION OF $3,500,000 FROM
CITY CENTER/HISTORIC CONVENTION VILLAGE (CITY CENTER)
REDEVELOPMENT AGENCY FUNDS, TO THE CITY OF MIAMI
BEACH, IN ORDER TO PROCEED WITH DESIGN DEVELOPMENT OF
CERTAIN PUBLIC IMPROVEMENTS, AS FURTHER SET FORTH IN
THIS RESOLUTION, TO BE DESIGNED, DEVELOPED AND
CONSTRUCTED BY THE NEW WORLD SYMPHONY, IN
ACCORDANCE WITH THE DEVELOPMENT AGREEMENT BETWEEN
THE CITY OF MIAMI BEACH ("CITY") AND THE NEW WORLD
SYMPHONY ("NWS"), DATED JANUARY 5,2004, WHICH PROJECT
PROVIDES FOR THE DESIGN, DEVELOPMENT AND CONSTRUCTION
OF A NOT TO EXCEED 50,000 SQUARE FOOT EDUCATIONAL
PERFORMANCE AND INTERNET BROADCAST FACILITY AND AN
EXTERIOR SCREEN (FORMERLY KNOWN AS "SOUNDSPACE" AND
NOW REFERRED TO AS "THE NEW WORLD SYMPHONY CAMPUS
EXPANSION PROJECT"), A PUBLIC PARKING GARAGE
CONTAINING BOTH PARKING AND GROUND FLOOR RETAIL
SPACE, AND CERTAIN OTHER PUBLIC STREETSCAPE
IMPROVEMENTS, INCLUDING A PARK; SAID APPROPRIATION TO
BE SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE
MAYOR AND CITY COMMISSION OF A PROPOSED FIRST
ADDENDUM TO THE DEVELOPMENT AGREEMENT, SCHEDULED
FOR SECOND AND FINAL PUBLIC READING BY THE CITY
COMMISSION ON FEBRUARY 20, 2007.
WHEREAS, on January 5, 2004, the City of Miami Beach (City) and the New World
Symphony (NWS), entered into a Development and Lease Agreement, providing for design,
development and construction of a 50,000 square foot educational performance and internet
broadcast facility and exterior screen (formally known as "Soundspace" and currently referred to as
the "New World Symphony Campus Expansion Project") and a public parking garage to be located
on the westernmost portion the 1 ih Street surface parking lots, bounded by 1 ih Street to the north,
North Lincoln Lane to the south, Washington Avenue to the east and Pennsylvania Avenue to the
west; ; and
WHEREAS, pursuant to the direction of the City Commission on September 8, 2004 and
consistent with the Planning Board's August 24, 2004 recommendation, the Project site was
expanded to include both surface lots, to be designed as an integrated site, to include the
development of a park and certain other public improvements; and
WHEREAS, the NWS and the City have since been working together to define the
processes and refine the scope for implementing NWS' plans pertaining to its Campus Expansion
Project, as well as the City's overall vision for developing the Park and the areas surrounding the
entire development site, comprising the 1 ih Street surface lots; and
WHEREAS, this process has involved "redefining" the zones that were initially presented at
the October 26, 2004 Finance Committee meeting, to better address the phasing and inter-relation
of the various components, (i.e., the Garage, Campus Expansion, Lincoln Lane and Pennsylvania
Avenue; defining the City's and NWS' respective scope and responsibilities relative to surrounding
infrastructure and streetscape improvements; re-valuing the "build-to" cost estimates for the Garage,
the Park Project and related infrastructure components (hereinafter referred to as the Additional
Improvements); determining the not-to-exceed cost estimate to develop schematics and the BODR
for the Park Project; and establishing terms and conditions relative to the development of the Park;
and
WHEREAS, In order to memorialize the results of these discussions, the City and NWS
have finalized a First Addendum to the Development Agreement (the Addendum), which is
scheduled for second and final reading at the Special Commission meeting set for February 20,
2007; and
WHEREAS, among the provisions addressed in the Addendum, are the City's funding
obligations towards the Garage, in a not to exceed amount of $15,210,135; the Park, at a total cost
not to exceed $14,960,000; and the Additional Improvements improvements, at a total cost not to
exceed $6,400,000, which pursuant to the City's Capital Plan that was adopted by the City
Commission on September 21,2006, are to be funded utilizing City Center RDA funds; and
WHEREAS, the Addendum requires the City to advance funding to the NWS in order to
commence design-development of the Garage, the Park and the Additional Improvements, in an
initial amount of $3,500,000, with the balance of funding required for construction, to be
appropriated beginning in October, 2007.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE REDEVELOPMENT AGENCY OF THE CITY OF MIAMI BEACH,
FLORIDA, that the Chairman and Members of the RDA hereby approve and authorize an
initial appropriation of $3,500,000 from City Center/Historic Convention Village (City
Center) Redevelopment Agency Funds to the City of Miami Beach, in order to proceed with
design-development of certain public improvements, as further set forth in this resolution, to be
designed, developed and constructed by the New World Symphony, in accordance with the
Development Agreement between the City of Miami Beach ("City") and the New World Symphony
("NWS"), dated January 5, 2004, which Project provides for the design, development and
construction of a not to exceed 50,000 square foot educational performance and internet broadcast
facility and exterior screen (formerly known as "Soundspace" and now referred to as "the new World
Symphony Campus Expansion Project"), a public parking garage containing both parking and
ground floor retail space and certain other public streetscape improvements, including a park; said
appropriation to be subject to and contingent upon approval by the Mayor and City Commission of
the proposed First Addendum to the Development Agreement, scheduled for Second and Final
Reading by the City Commission on February 20,2007.
PASSED and ADOPTED this ~ day of Februar , 2
ATTEST:
Ulw~ rUUuA
SECRETARY
Robert Parcher
T:\AGENDA\2007\FEB 14\RDA\NWS ApPROPRIATION RESO.DOC
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General Counsel- .
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MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution authorizing an initial appropriation of $3,500,000 from City Center RDA funds to the City of Miami Beach, in order to proceed
with design development of certain public improvements, to be designed, developed and constructed by the New World Symphony (NWS),
in accordance with the Development Agreement between the City and the NWS, dated January 5, 2004, and the proposed FirstAddendum
thereto, scheduled for second and final readin b the Ci Commission on Februa 20,2007.
Ke Intended Outcome Su orted:
Increase community rating of cultural activities and ensure well maintained facilities.
Issue:
Shall the Chairman and Members of the RDA, authorize an initial appropriation of $3,500,000 for the purpose of initiating design
development of certain public improvements related to the New World Symphony's Campus Expansion Project, to include a parking
garage, a park and certain street, landscape and infrastructure improvements components surrounding the Project site (the Additional
Improvements)?
Item Summary/Recommendation:
On January 5, 2004, the City of Miami Beach (City) and the New World Symphony (NWS), entered into a Development and Lease
Agreement, providing for design, development and construction of a 50,000 square foot educational performance and internet broadcast
facility and exterior screen (formally known as "Soundspace") and a public parking garage to be located on the westernmost portion the
17'h Street surface parking lots, bounded by 17'h Street to the north, North Lincoln Lane to the south, Washington Avenue to the east and
Pennsylvania Avenue to the west. Pursuant to the direction of the City Commission on September 8, 2004 and consistent with the
Planning Board's August 24, 2004 recommendation, the Project site was expanded to include both surface lots, to be designed as an
integrated site, to include the development of a park and certain other public improvements.
Since this time, the City and the NWS have been negotiating terms and conditions pertaining to the respective parties' scope of
responsibilities relative to surrounding/abutting infrastructure and streetscape improvements; re-valuing the "build-to" cost estimates for the
Garage, the Park Project and related infrastructure components; determining the not-to-exceed cost estimate to develop schematics and
the BODR for the Park Project; and establishing terms and conditions relative to the development of the Park Project. In order to
memorialize the results of these discussions, the City and NWS have finalized a First Addendum to the Development Agreement (the
Addendum), which is scheduled for second and final reading on today's Special Commission agenda. Among the provisions addressed in
the Addendum, is the City's funding obligation towards the Garage, the Park and its respective share of surrounding infrastructure and
streetscape improvements, which pursuant to the City's Capital Plan that was adopted by the City Commission on September 21,2006, is
to be funded utilizing City Center RDA funds. Subject to the adoption of the proposed FirstAddendum, Staff recommends an appropriation
in the amount of $3,500,000 to the City from City Center RDA funds, in order to initiate design development on the Parking Garage, the
Additional Improvements and the Park components of the Proiect.
Adviso Board Recommendation:
Finance & Citywide Projects Committee, Nov 30, 2006: Recommendation to advance funding for Park design through BODR and $1
Million towards Garage design, until such time that issue of increased garage budget is addressed at the special Commission workshop
held of Feb 12, 2007, and subse uentl a roved b Commission at the s ecial Commission meetin on Feb 20, 2007.
Financial Information:
Source of unds:
1
Total
Amount
$3,500,000
$3,500,000
Account
City Center RDA
Approved
Financi I Impact Summary: $35,210,135 funding programmed as part of Citywide Capital Plan adopted on Sept 21,2006, to
be appropriated beginning in FY 08/09. This Resolution recommends earlier funding of $3.5 Million for design-development and
additional future ro rammin of $1.3 Million, related to additional sco e related to the Park.
islative Trackin :
Si n-Offs:
Redevelopment Coordinator
Assistant Director
Executive Director
lD
,..,
MIAMIBEACH
AGENDA ITEM
DATE
fA
;). - Jo -07
lD MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachR.gov
REDEVELOPMENT AGENCY MEMORANDUM
FROM:
Chairman and Members of the Miami Beach Redevelopment Agency
Jorge M. Gonzalez, Executive Director ~...........~
February 20, 2007 0
TO:
DATE:
SUBJECT: A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY APPROVING AND AUTHORIZING AN INITIAL
APPROPRIATION OF $3,500,000 FROM CITY CENTER/HISTORIC
CONVENTION VILLAGE (CITY CENTER) REDEVELOPMENT AGENCY FUNDS,
TO THE CITY OF MIAMI BEACH , IN ORDER TO PROCEED WITH DESIGN
DEVELOPMENT OF CERTAIN PUBLIC IMPROVEMENTS, AS FURTHER SET
FORTH IN THIS RESOLUTION, TO BE DESIGNED, DEVELOPED AND
CONSTRUCTED BY THE NEW WORLD SYMPHONY, IN ACCORDANCE WITH
THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH
("CITY") AND THE NEW WORLD SYMPHONY ("NWS"), DATED JANUARY 5,
2004, WHICH PROJECT PROVIDES FOR THE DESIGN, DEVELOPMENT AND
CONSTRUCTION OF A NOT TO EXCEED 50,000 SQUARE FOOT
EDUCATIONAL PERFORMANCE AND INTERNET BROADCAST FACILITY AND
AN EXTERIOR SCREEN (FORMERLY KNOWN AS "SOUNDSPACE" AND NOW
REFERRED TO AS "THE NEW WORLD SYMPHONY CAMPUS EXPANSION
PROJECT" ), A PUBLIC PARKING GARAGE CONTAINING BOTH PARKING
AND GROUND FLOOR RETAIL SPACE, AND CERTAIN OTHER PUBLIC
STREETSCAPE IMPROVEMENTS, INCLUDING A PARK; SAID
APPROPRIATION TO BE SUBJECT TO AND CONTINGENT UPON APPROVAL
BY THE MAYOR AND CITY COMMISSION OF A PROPOSED FIRST ADDENDUM
TO THE DEVELOPMENT AGREEMENT, SCHEDULED FOR SECOND AND
FINAL PUBLIC READING BY THE CITY COMMISSION ON FEBRUARY 20,2007.
ADMINISTRATION RECOMMENDATION
Adopt the resolution.
ANALYSIS
On January 5,2004, the City of Miami Beach (City) and the New World Symphony (NWS),
entered into a Development and Lease Agreement, providing for design, development and
construction of a 50,000 square foot educational performance and internet broadcast facility
and exterior screen (formally known as "Soundspace") and a public parking garage to be
located on the westernmost portion the 1 ih Street surface parking lots, bounded by 1 ih
Street to the north, North Lincoln Lane to the south, Washington Avenue to the east and
Pennsylvania Avenue to the west. Pursuant to the direction of the City Commission on
September 8, 2004 and consistent with the Planning Board's August 24, 2004
recommendation, the Project site was expanded to include both surface lots, to be
designed as an integrated site, to include the development of a park and certain other public
improvements.
Miami Beach Redevelopment Agency
February 20, 2007
New World Symphony - Appropriation for Design - Development of Parking Garage and Park
Project Components
Page 2 of 5
Since this time, the NWS and the City have been working together to define the processes
and refine the scope for implementing NWS' plans pertaining to its Soundspace Project, as
well as the City's overall vision for developing the Park and the areas surrounding the entire
development site, comprising the 1 ih Street surface lots. This process has involved
"redefining" the zones that were initially presented at the October 26, 2004 Finance
Committee meeting, to better address the phasing and inter-relation of the various
components, (i.e., the Garage, Soundspace, the Park, Lincoln Lane and Pennsylvania
Avenue; defining the City's and NWS' respective scope and responsibilities relative to
surrounding infrastructure and streetscape improvements; re-valuing the "build-to" cost
estimates for the Garage, the Park Project and related infrastructure components;
determining the not-to-exceed cost estimate to develop schematics and the BODR for the
Park Project; and establishing terms and conditions relative to the development of the Park
Project. In order to memorialize the results of these discussions, the City and NWS have
finalized a First Addendum to the Development Agreement (the Addendum), which is
scheduled for second and final reading on today's Special Commission agenda.
Among the provisions addressed in the Addendum, is the City's funding obligation towards
the Garage, the Park and its respective share of surrounding infrastructure and streetscape
improvements, which pursuant to the City's Capital Plan that was adopted by the City
Commission on September 21,2006, is to be funded utilizing City Center RDA funds. The
RDA's anticipated share of costs associated with these improvements is as follows:
Zone 1.1 - Parking Garage
Pursuant to the existing Development Agreement, the City was to fund an amount not to
exceed $12,250 per parking space for all hard costs ($3.9 Million based on 320 spaces and
$7.5 million based on 608 spaces) plus 12.5% of the hard cost per space for soft costs.
While there is also a provision for a CPI adjustment (not to exceed 5%) at the time the
Building Permit is issued, it should be noted that these numbers were based on comparable
garage facilities that were built pre-2004. Pursuant to the City Commission's mandate noted
above, the Garage is planned to maximize the number of parking spaces and to also contain
certain space on the ground floorfor retail uses, which makes the currently estimated parking
spaces number 608.
However, since the Development Agreement was executed, the area has seen considerable
escalation in the cost of construction and construction materials. These cost increases,
combined with the anticipated doubling in size of the Garage's original number of spaces,
together result in a significant increase in the overall cost. The current cost of the Garage is
estimated at $15,210,000. Based on the current required City contribution (with contractually
allowed escalation) of $13,505 per space or$8,211 ,040, NWS would need to pay out oftheir
funds the remaining difference of approximately $7 million plus any cost overruns. NWS has
advised the City that they do not have the financial resources to meet this requirement and
that if the City does not alter this requirement, then the entire project cannot proceed. Since
the Garage has always been intended to be a City responsibility and will also be wholly
owned and operated by the City, the City Administration recommends that the City assume
the whole cost of the Garage, currently estimated at $15,210,000 (approximately $25,016 per
space) for the design, development and construction of the Garage (which, as note
previously, will be funded by City Center Redevelopment Area Tax Increment funds in the
Capital Plan that was adopted by the City Commission on September 21, 2006, and
referenced accordingly in the adoption of the RDA's FY 2006/07 Capital Budget on the same
Miami Beach Redevelopment Agency
February 20, 2007
New World Symphony - Appropriation for Design - Development of Parking Garage and Park
Project Components
Page 3 of 5
date). If this recommendation is accepted, the City would also be responsible for any and all
cost overruns associated with the Garage.
It should also be noted that the Development Agreement currently provides for the City to pay
NWS the Garage Costs in sixteen (16) equal monthly installments, beginning on the first day
of the second month following commencement of construction on the Garage. The basis for
this provision is to afford protection to the City in the event construction of the Garage does
not occur. This position is also consistent with the City's standard public/private
development agreements wherein the City does not put funds at risk until construction
begins.
However, NWS has pointed out that the original payment schedule does not accurately
reflect the timing of required expenditures, and is requesting that in the event of approval of
the First Addendum, at that time, the City would reimburse the NWS, in a lump sum,
payment all of the costs, fees and expenses related to Zone 1 (that amount currently is
approximately $41 ,000) incurred through and including the execution date of the Addendum
and that, going forward, beginning with the execution date, NWS would be reimbursed
monthly for hard and soft costs on a percentage of completion basis.
In considering this request, and as noted above, the City traditionally does not put its funds at
risk until construction has commenced. This request would put these funds at risk if for
some reason NWS makes the decision not to proceed with the project. In exchange for this
preliminary outlay of funds, NWS is willing to make the City whole in the event that the
Symphony Campus Project does not proceed, by reimbursing the City for its share of the
costs incurred through commencement of construction of the Garage.
NWS has two qualifications of this guarantee of reimbursement by exempting its obligation to
reimburse the City under the following circumstances: 1) if the City Commission imposes
requirements that make the Project infeasible; and/or 2) if the City does not commit to a $15
Million grant-in-aid. Although a right of assignment was requested by the City in lieu of the
guarantee of reimbursement, NWS has reported that Gehry Partners will not provide this
right of assignment prior to construction commencement. This represents considerable
movement on the part of NWS since the December 6, 2007 Commission Meeting.
Finally, NWS has agreed that, with the exception of funding required to commence design-
development, the RDA's contribution for construction of the Garage will be drawn no earlier
than October 1, 2008.
Additional Improvements: Zones 1.2 - Garage Landscaping along Lincoln Lane and
Pennsylvania Avenue; Zone 1.3 -- 17th Street Streetscape contiguous with Zone 1.1;
Zone 2.2 - Drexel Avenue Realignment; and Zone 2.3 - 17th Street Streetscape
contiguous with Zone 2.1
Following the directive to create an integrated Project site, the City, as described below, has
budgeted $20,210,000 towards the Park Project ("Park Project Budget"), which as in the case
of the Garage, is also reflected in the Capital Plan that was adopted by the City Commission
on September 21, 2006, and referenced accordingly in the adoption ofthe RDA's FY 2006/07
Capital Budget on the same date. Included within the Park Project Budget is funding for the
Additional Improvements to be designed, developed and constructed concurrently with the
Symphony Campus and the Garage. The City estimates, and is budgeting an amount not to
exceed $6,400,000 for completion of the Additional Improvements; (this cost is included in
the not-to-exceed Park Project Budget of $20,210,000, although this $6.4 Million will be
Miami Beach Redevelopment Agency
February 20, 2007
New World Symphony - Appropriation for Design - Development of Parking Garage and Park
Project Components
Page 4 of 5
needed as of October 1, 2007). In the event the actual cost ofthe Additional Improvements
is less than the budgeted amount, the excess of such funds shall be available to be used for
the design, development and construction of the Park itself (Zone 3).
Zone 3.1 - City Center Park
Based on comparable park projects throughout the City and taking into consideration the
additional scope of work involvin~ the abutting streetscape improvements along Washington
Avenue (Zone 3.2) and along 17 h Street, contiguous with Zone 3.1 (Zone 3.3), the City, as
part of its adopted Capital Plan, has established a not-to-exceed Park Project Budget in the
amount of $20,210,000 for the Park Project (which amount includes the Additional
Improvements in Zones 1 and 2 as noted above). Using this build-to number as a basis,
included within the Park Project Budget is a not-to-exceed cost estimate to develop
schematics and the BODR for the Park Project (which includes all components within Zone
3) in the amount of $1,110,000. This $1,110,000 includes approximately $29,600 to
reimburse the NWS for costs, fees and expenses that NWS has already incurred in
connection with Zone 3.
At the December 6,2006 City Commission Meeting, the City Commission determined to add
Jackie Gleason Theater of the Performing Arts' (JGT's) entry way landscaping back into the
scope for the Park, at an estimated additional cost of $1 ,150,000. This decision increased
the cost for the Park from $20,210,000 to $21,360,000. Based on funding commitments for
the City Center RDA, NWS and the City have agreed that, with the exception of the funding
to achieve the BODR, funding for construction of the Park will be available no earlier than
October 1,2009.
Pursuant to the proposed First Addendum, the process for review and approval of the Park
Project Design will generally provide for two (2) Community Design Workshops, and for
appropriate review and approval milestones (of the concept plan and plans and
specifications, respectively) for the City Manager and the City Commission. The NWS, upon
approval of the BOOR by the City Commission, shall have the opportunity to price labor and
materials and establish a final GMP, within range of the numbers presented in the BODR. If
the final construction numbers exceed the range established in the BODR, the City will have
the following options to bring the Project within budget: fund the higher amount; and/or, value
engineer the Project; and/or, delete scope to bring the Project within budget. The City is also
responsible for any cost overruns for the Park and Additional Improvements.
With respect to the design costs for the Park itself, the NWS has also agreed that, in the
event it elects not to proceed with Symphony Campus Project, it will reimburse the City for
its share of costs associated with providing schematics and a BODR for the Park, which is
estimated at $1.1 million. However, as in the case of the Garage, NWS qualifies this
guarantee of reimbursement by exempting its obligation to reimburse the City under the
following circumstances: 1) if City Commission imposed requirements make the Project
infeasible; and/or 2) if the City does not commit to a $15 Million grant-in-aid. Although a right
of assignment was requested by the City in lieu of the guarantee of reimbursement, NWS
has reported that Gehry Partners will not provide this right of assignment prior to construction
commencement.
Miami Beach Redevelopment Agency
February 20, 2007
New World Symphony - Appropriation for Design - Development of Parking Garage and Park
Project Components
Page 5 of 5
It should also be noted that Section 2.11 of the Development Agreement provides NWS with
the right to terminate the Development Agreement and the Ground Lease prior to the
Possession Date, in the event of any conditions that would render the Project economically
unfeasible, including, but not limited to regulatory agency requested design changes,
concurrency requirements and/or environmental remediation costs without liability or further
obligation. As noted above, in the event of such termination by NWS, the proposed First
Addendum revises this section of the Development Agreement to provide for reimbursement
to the City of all design costs incurred in connection with the Park and the Garage.
Funding Request Summary
Zone Descri tion
Zone 1.1 Parking
Garage
Total Cost
$15,210,135 (Est 608
spaces @ $25,016/space
+ soft costs
Zones 1.2, 1.3, 2.2, 2.3
Addt'1 1m rovements $ 6,400,000
Zones 3.1, 3.3 - Park $14,960,000
Park Improvements,
including JGT entry-way
landsca in
Total $36,570,135 $3,500,000 $33,070,135
Note: The Citywide Capital Plan adopted in September 21, 2006, programmed a total of
$35,210,135 for the City's share of NWS-related improvements. It did not reflect the re-introduction
of the Jackie Gleason Theater (JGT) entry-way improvements, which was initially estimated at
$1,150,000.
CONCLUSION
Subject to the adoption of the proposed First Addendum to the Development Agreement
between the City and the NWS, Staff recommends an appropriation in the amount of
$3,500,000 from City Center RDA funds, to be disbursed to the City in order to initiate design
development on the Parking Garage, the Additional Improvements and the Park components
of the Project. As noted earlier, the proposed Addendum provides that within thirty (30) days
of its execution by the respective parties, the City shall fund directly to the NWS in lump sum,
payment of all costs, fees and expenses incurred through and including the execution date of
the Addendum, and that going forward, the City shall remit to NWS periodic progress
payments for soft costs associated with the design of these components, (pursuant to the
terms and procedures provided for in the Addendum), including but not limited to the work of
the Architectural Consultant and other consultants and professionals associated with the
Project.
JMG/TH/KO~
T:\AGENDA\2007\Feb 20\RDA\nws appropriation memo.doc