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544-2007 RDA Reso RESOLUTION NO. 544-2007 A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING AN APPROPRIATION, IN THE AMOUNT $5,326,710, FROM CITY CENTER/HISTORIC CONVENTION VILLAGE (CITY CENTER) REDEVELOPMENT AND REVITALIZATION AREA FUNDS, IN ORDER TO PROCEED WITH CERTAIN IMPROVEMENTS TO A PORTION OF LINCOLN ROAD MALL, BETWEEN LENOX AVENUE AND ALTON ROAD, TO BE DESIGNED, DEVELOPED AND CONSTRUCTED BY UIA MANAGEMENT, LLC, IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND UIA MANAGEMENT, LLC, (THE DEVELOPMENT AGREEMEND, SCHEDULED FOR SECOND AND FINAL READING ON MARCH 14, 2007; SAID IMPROVEMENTS TO INCLUDE, WITHOUT LIMITATION, STREETSCAPE, STREET FURNITURE, LANDSCAPING, DECORATIVE FOUNTAINSIWATER FEATURES, AND CORRESPONDING LIGHTING, IRRIGATION, AND DRAINAGE SYSTEMS ("THE PROJECT"), AND WHICH INCLUDES THE CLOSURE OF THE AFOREST A TED PORTION OF LINCOLN ROAD MALL TO VEHICULAR TRAFFIC, AND DESIGN, DEVELOPMENT, AND CONSTRUCTION OF A NEW PUBLIC PEDESTRIAN PLAZA, EXTENDING THE PEDESTRIAN PORTION OF LINCOLN ROAD MALL FURTHER TO THE WEST (TO INCLUDE THE REFERENCED AREA BETWEEN LENOX AVENUE AND ALTON ROAD); SAID APPROPRIATION TO BE SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE MAYOR AND CITY COMMISSION OF THE AFORESTATED DEVELOPMENT' AGREEMENT, (SCHEDULED FOR SECOND AND FINAL PUBLIC READING BY THE CITY COMMISSION ON MARCH 14, 2007). WHEREAS, the City is the owner of certain land located on Lincoln Road, between Lenox Avenue and Alton Road, in Miami Beach, Florida (the Property); and WHEREAS, UIA Management, LLC (Developer) is the owner of certain land adjacent to the Property, located at 1111 Lincoln Road, Miami Beach (the 1111 Lincoln Road Property); and WHEREAS, the Design Review Board of the City approved the renovation of the existing office building, and the construction of a new two story mixed-use building and a new seven story mixed-use parking structure on the 1111 Property (collectively, the 1111 Lincoln Project), pursuant to an Order dated February 7, 2006, under DRB File No. 19018 (the DRB Order); and WHEREAS, the Board of Adjustment of the City approved the 1111 Lincoln Project, pursuant to an Order dated March 3, 2006, under File No. 3178 (the BOA Order); and WHEREAS, as a condition under each of the DRB Order and the BOA Order, the Developer, as the owner of the 1111 Lincoln Road Property, was required to enter into discussions with the City to explore the possibility of closing the block of Lincoln Road, between Lenox Avenue and Alton Road, to vehicular traffic, and extending the Lincoln Road pedestrian mall west to Alton Road; and WHEREAS, the Historic Preservation Board of the City issued a Certificate of appropriateness, granting approval of the closing of the block of Lincoln Road, between Lenox Avenue and Alton Road, to vehicular traffic and the extension of the Lincoln Road pedestrian mall, West to Alton Road, pursuant to an Order dated November 14, 2006, under File No. 4161; and WHEREAS, on November 26, 2006, the Finance and Citywide Projects Committee approved Developer's conceptual plan for the closure of Lincoln Road, from Lenox Avenue to Alton Road, and the construction of a new pedestrian mall (the Conceptual Plan); and WHEREAS, on December 6, 2006, the City Commission approved the Conceptual Plan; and WHEREAS, following the City Commission's approval of the Conceptual Plan, the City Administration and Developer have negotiated the terms of a proposed Development Agreement, (the Agreement), whereby the Developer shall undertake design, development, and construction of certain public improvements to the Property, substantially in accordance with the Conceptual Plan; said improvements consisting of a pedestrian plaza and including, without limitation, streetscape, street furniture, landscaping, decorative fountains/water features and accompanying lighting, irrigation and drainage systems (the Project); and WHEREAS, on February 14, 2007, following a duly notice Public Hearing, the City Commission adopted the Agreement on First Reading; and WHEREAS, pursuant to the Citywide Capital Plan that was adopted on September 21, 2006, a total of $5,000,000 was originally programmed from City Center RDA funds for the Project, of which $550,000 was appropriated as part of the Fiscal Year 2006/07 Capital Budget; and WHEREAS, based on updated cost estimates, the Project has now been budgeted at $5,876,710, requiring a balance of $5,326,710 to be appropriated; and, WHEREAS, the Executive Director would hereby recommend that the Chairman and Members hereby appropriate the balance of the funds for the Project, subject to and condition upon approval of the Development Agreement, upon Second and Final Reading, which is scheduled to be heard by the City Commission on March 14,2007. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Chairman and Members of the Miami Beach Redevelopment Agency hereby authorize an appropriation in the amount of $5,326,710 from City Center/Historic Convention Village (City Center) Redevelopment and Revitalization Area funds, in order to proceed with certain improvements to a portion of Lincoln Road Mall, between Lenox Avenue and Alton Road, to be designed, developed and constructed by UIA Management, LLC, in accordance with the Development Agreement between the City of Miami Beach and UIA Management, LLC (The Development Agreement), scheduled for Second and Final Reading on March 14, 2007; said improvements to include, without limitation, streetscape, street furniture, landscaping, decorative fountains/water features, and corresponding lighting, irrigation and drainage systems (The Project), and which includes the closure of the aforestated portion of Lincoln Road Mall to vehicular traffic, and design development, and construction of a new public pedestrian plaza, extending the pedestrian portion of Lincoln Road Mall further to the west (to include the referenced area between Lenox Avenue and Alton Road); said appropriation further subject to and contingent upon approval by the Mayor and City Commission of the aforestated Development Agreement (scheduled for Second and Final Reading by the City Commission on March 14,2007). APPROVED, ON FIRST READING this 14th day of March, 2007. ~%~rls Michael Gongora _ \ VI'(e~ CHAIRMAN ~ ATTEST: JUk~ f aft ~ SECRETARY Robert Parcher JMG:TH/FHB/KOB F:\ECON\$ALL\RDAICookyIL R M Appropriation Res1.doc /' , W .././ t 3 07 v" lopment Agen~~... Da eneral Counsel 'J( \~ MIAMI BEACH REDEVELOPMENT AGENCY SUMMARY Condensed Title: A resolution appropriating $5,326,710 from City Center RDA funds, in order to proceed with certain improvements to a portion of Lincoln Road Mall, between Lenox Avenue and Alton Road, to be designed, developed and constructed by UIA Management, LLC, in accordance with the Development Agreement between the City of Miami Beach and UIA Management, LLC (The Develo ment A reement , scheduled for Second and Final Readin on March 14,2007; Ke Intended Outcome Su orted: Maintain or improve traffic flow. Issue: Shall the RDA appropriate the required funding to enable execution of the Development Agreement between the Ci and UIA, LLC. Item Summary/Recommendation: Pursuant to the recommendation of the City's Design Review Board, UIA Management, LLC, the Developer of the parking garage at 1111 Lincoln Road, has developed conceptual plans to build a pedestrian mall on the 1100 block of Lincoln Road (the Project). The approval of this concept plan by the City Commission on December 6, 2006 was followed by the presentation of a term sheet, by the Developer, to be further negotiated into a proposed Development Agreement. On January 25, 2007, the Finance and Citywide Projects Committee approved the term sheet that would serve as the basis for the Development Agreement, that was subsequently approved on First Reading by the City Commission on February 14, 2007. Pursuant to the Citywide Capital Plan that was adopted on September 21, 2006, a total of $5,000,000 was originally programmed from City Center RDA funds for this Project, of which $550,000 was appropriated as part of the this year's Capital Budget. Based on updated cost estimates, the Project has now been budgeted at $5,876,710, requiring a balance of $5,326,710 to be appropriated upon approval the Development Agreement between the City and UIA. The Administration recommends appropriating the required balance subject to approval of the proposed Development Agreement upon Second and Final Reading, scheduled for March 14,2007. Source of Amount Account Approved Funds: 1 $5,326,710 ~ l 2 Center 3 RD :/ 4 OBPI/'7 Total $5,326,710 Financial Impact Summary: $550,000 already appropriated in FY 06/07. Execution of Development Agreement, requires re-programming of Project balance from FY 07/08 to current year, plus difference in current Proiect cost estimate of $876,710, to be funded from non-TIF funds. Clerk's Office Le islative Trackin : Kent Bonde, Redevelopment Coordinator, Ext 6363 n-Ofts: Redevelopment Coordinator KOB T:\AGENDA\2007\feb1407IRegularlLincoln Road Mall Dev Agreement SUM,d m .... MIAMI BEACH AGENDA ITEM DATE J.A 3-1l{-07 lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov MIAMI BEACH REDEVELOPMENT AGENCY MEMORANDUM TO: FROM: DATE: SUBJECT: Chairman and Members of the Miami Beach Redevelopment Agency Jorge M. Gonzalez, Executive Director C\ ~ March 14, 2007 ?f U A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA) AUTHORIZING AN APPROPRIATION, IN THE AMOUNT $5,326,710, FROM CITY CENTER/HISTORIC CONVENTION VILLAGE (CITY CENTER) REDEVELOPMENT AND REVITALIZATION AREA FUNDS, IN ORDER TO PROCEED WITH CERTAIN IMPROVEMENTS TO A PORTION OF LINCOLN ROAD MALL, BETWEEN LENOX AVENUE AND ALTON ROAD, TO BE DESIGNED, DEVELOPED AND CONSTRUCTED BY UIA MANAGEMENT, LLC, IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND UIA MANAGEMENT, LLC, (THE DEVELOPMENT AGREEMENT), SCHEDULED FOR SECOND AND FINAL READING ON MARCH 14, 2007; SAID IMPROVEMENTS TO INCLUDE, WITHOUT LIMITATION, STREETSCAPE, STREET FURNITURE, LANDSCAPING, DECORATIVE FOUNTAINSIWATER FEATURES, AND CORRESPONDING LIGHTING, IRRIGATION, AND DRAINAGE SYSTEMS ("THE PROJECT"), AND WHICH INCLUDES THE CLOSURE OF THE AFORESTATED PORTION OF LINCOLN ROAD MALL TO VEHICULAR TRAFFIC, AND DESIGN, DEVELOPMENT, AND CONSTRUCTION OF A NEW PUBLIC PEDESTRIAN PLAZA, EXTENDING THE PEDESTRIAN PORTION OF LINCOLN ROAD MALL FURTHER TO THE WEST (TO INCLUDE THE REFERENCED AREA BETWEEN LENOX AVENUE AND ALTON ROAD); SAID APPROPRIATION TO BE SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE MAYOR AND CITY COMMISSION OF THE AFORESTATED DEVELOPMENT AGREEMENT, (SCHEDULED FOR SECOND AND FINAL PUBLIC READING BY THE CITY COMMISSION ON MARCH 14, 2007). ADMINISTRATION RECOMMENDATION Adopt the Resolution, BACKGROUND UIA Management, LLC, the Developer of the recently approved parking garage project at 1111 Lincoln Road (Developer), has, pursuant to a request from the Design Review Board, proposed a plan that eliminates the vehicular access between Alton Road and Lenox Avenue and replaces it with a new pedestrian plaza, extending the pedestrian portion of Lincoln Road west to Alton Road. The new plaza design will be organic in nature, characterized by groupings of mature cypress trees. When the Design Review Board approved the new parking garage with ground level accessory commercial uses at the intersection of Lincoln Road and Alton Road, the applicant was encouraged to enter into discussions with the City relative to exploring the possibility of closing this block of Lincoln Road to vehicular traffic and extending the pedestrian mall all the way through to Alton Road. The extension of the very successful pedestrian mall will enhance this portion of Lincoln Road and reinforce the pedestrian experience along the mall from Washington Avenue through to Alton Road. Although planning staff encouraged the applicant to investigate the original design proposed for this block of Lincoln Road by Morris Lapidus, the administration believes the latest proposal is appropriate, considering the scale and design of the modern architecture that will frame the western gateway to Lincoln Road, including the Cinema building and the iconic parking garage approved. The Historic Preservation Board endorsed the proposal on November 14, 2006, and the Visitor and Convention Authority Committee issued a resolution in support of this project. The Miami Design Preservation League also supports the project. The City has received letters of support from property owners located at the 1100 block of Lincoln Road and several letters of endorsement from Miami Beach residents. The developer completed a traffic impact analysis to address concerns related to added vehicular traffic congestion in the area resulting from the street closure. This analysis showed that the closure of Lincoln Road and subsequent traffic conditions will have no significant impact on adjacent streets, specifically along Alton Road and Lenox Avenue, from 16th Street to 1 ih Street. The analysis established that the aforementioned streets have sufficient capacity to carry over the diverted traffic. The busiest intersection, 1 ih Street and Alton Road is already in compromised levels of service, and the closure will have minimal impact to the intersection. Operational analysis conducted for future conditions at other adjacent intersections (Alton Road and Lincoln Road; Alton Road and 16th Street; Lenox Avenue and 17th Street; Lenox Avenue at Lincoln Road; Lenox Avenue at 16th Street) indicates that these intersections will continue to operate at current levels of service with no added deterioration in level of service. The elimination of the westbound movement also reduces conflicts with vehicles on Alton Road allowing a better operation at 1 ih Street and Alton Road intersections. On November 22, 2006 the Finance and Citywide Projects Committee approved the conceptual plan for the closure of Lincoln Road from Lenox Avenue to Alton Road and the construction of a new pedestrian mall. The Committee's recommendation was forwarded to the City Commission for its consideration. The City Commission at its meeting on December 6, 2006 approved the concept plan developed by the 1111 Lincoln Road developer. On January 25, 2007, the Finance and Citywide Project Committee approved the term sheet that would serve as the basis for the development agreement between the City and UIA Management for the design and construction of a pedestrian mall on the 1100 block of Lincoln Road. ANALYSIS Since the December Commission meeting, City staff has met several times with UIA to further develop design concepts, construction schedules, and cost estimates, plus terms and conditions for a negotiated development agreement between UIA and City of Miami Beach, the terms of which were approved by the City Commission on First Reading on February 14, 2007. The highlights of the proposed Development Agreement are as follows: Scope of Project: The closure of a portion of Lincoln Road between Lenox Avenue and Alton Road to vehicular traffic, and the construction of a new design for the extension of the Lincoln Road pedestrian mall west to Alton Road. The vehicular access that exists between Alton Road and Lenox Avenue will be removed and replaced with a new pedestrian plaza, extending the pedestrian portion of Lincoln Road further to the west. The new plaza design will be organic in nature, characterized by, among other things, grouping mature cypress trees. Design and Construction Team: City has approved UIA's selection ofthe Architect and the General Contractor to design and construct, respectively, the improvements. City shall have a right to approve the final architect's agreement and construction contract. Additionally, City will have a right to approve all change orders, which approval shall not be unreasonably withheld conditioned or delayed. Project Costs: The costs of the improvements, in the amount of $5,876,710 shall be funded by the City. UIA shall enter into a cost plus with a guaranteed maximum price contract for the hard costs with the General Contractor. At 50% construction drawings, UIA shall submit the costs of the improvements for bids. If the Project is out of budget, the Architect, the General Contractor and the other professionals shall be required to value engineer the Project (at their sole cost) to bring it back into budget. City shall not be responsible for the disbursement of any sums in excess of the Budgeted Cost of improvements, except for approved change orders resulting from events outside of UIA's control. The construction contract shall limit the grounds for approved change orders to City requested change orders, force majeure events, building department field inspector requirements not reflected on the plans and specifications, acts or omissions of the City, material and substantial changes in the improvements not caused by UIA and concealed or unknown conditions. UIA Costs: UIA shall fund approximately $162,749 in addition to the Costs to City for the replacement of sidewalks, curbs and gutters on the Project Site. To date, UIA has contributed approximately $290,000 in cash or in kind benefits related to the design of the project, legal fees and other out of pocket incurred expenses. Public Benefits: The public will benefit in several ways from the proposed Project: (a) 1100 block of Lincoln developer has already contributed to approximately $290,000 in cash or in kind in the conceptual design of the project, legal fees and other out of pocket expenses; (b) the developer has agreed to match the City's Art in Public Places contribution to the project (c) by contracting with an affiliate ofthe developer ofthe adjoining 1111 Lincoln Road project to develop the Project, the public will realize significant savings in general conditions and other expenses related to the construction of the Project; (d) having a single Developer and General Contractor building both the new mixed-use building on the 1111 Lincoln Road project and the Project will minimize disruption and ensure better coordination of the two projects; and (e) the City benefits by having the developer's construction management and design teams on site coordinating the construction of the pedestrian mall. General Contractual Terms and Responsibilities: Such as contract time, developer and City responsibilities, progress payments, acceptance and final payment, resolution of disputes, inspection of project, superintendents and supervision, rights to terminate, warranty, defective work, change orders, substantial completion, bonds and insurance, miscellaneous. FISCAL IMPACT Pursuant to the Citywide Capital Plan that was adopted on September 21 ,2006, a total of $5,000,000 was originally programmed from City Center RDA funds for the closure and construction of the pedestrian mall on Lincoln Road between Lenox Avenue and Alton Road, of which $550,000 was appropriated as part of the this year's Capital Budget. Based on updated cost estimates, the Project has now been budgeted at $5,876,710, requiring a balance of $5,326,710 to be appropriated upon approval the Development Agreement between the City and UIA. The Administration recommends appropriating this balance upon approval of the proposed Development Agreement. JMGITH/FHB/KB/kob T:\AGENDA\2007\Mar1407\RDAILincoln Road Mall Dev Agreement Appropriation.doc