HomeMy WebLinkAboutM-02-0914CITY OF MIAMI, FLORIDA 21
INTER -OFFICE MEMORANDUM
TO: The Honorable Mayor and Members DATE: �jv' FILE:
Of the City Commission
SUBJECT: Discussion Regarding Aviation
and Visitors Center
FROM: en REFERENCES:
City Manager
ENCLOSURES:
The City, the Miami Sports and Exhibition Authority ("MSEA") and the Greater Miami
Convention and Visitors Bureau (the "Bureau") (collectively the "Parties") have agreed to
develop and operate an air transportation facility in Watson Island (the "Project") pursuant to
agreements that were negotiated and executed in 1997. The City requested some changes to the
agreements and have been negotiating and drafting the revisions.
On May 23, 2002, the City Commission discussed the status of the Project and suggested that the
building contain an international press center in lieu of providing office space for MSEA. The
Parties have met with the architect and have identified approximately 1,900 SF of space on the
first floor that can be made available for this purpose. A sketch of the area is attached hereto as
Exhibit I for reference.
Also attached as Exhibit II is a summary of significant business points contained within the
original agreements entered into by the Parties related to the Project and a summary of the
significant business points that are proposed to be contained within the new agreements. At this
time, we are seeking direction from the City Commission in relation to the significant business
points so we may finalize the new agreements.
CAG:DB: m GMCVB 7-25-02
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EXHIBIT II
WATSON ISLAND AVIATION AND VISITOR'S CENTER
SIGNIFICANT BUSINESS POINTS
ORIGINAL AGREEMENTS
NEW AGREEMENTS
and Open Issues
1. City responsible for construction of the
1. GMCVB assumes responsibility for
facility. GMCVB's sole obligation was to fund.
overseeing construction of the entire air
trans ortation facility.
2. GMCVB responsible for $3.2 Million
2. GMCVB responsible for $7 Million
(approximately 50%) of the project costs.
(approximately 60%) of the project costs,
$3.8 Million of which will be been funded
through a CDT Grant.
3. GMCVB's funding obligation was subject to
3. GMCVB responsible for all cost overruns
a $3.2 Million cap. All sums paid by GMCVB
without reimbursement.
(at its election) in excess of the cap were to be
reimbursed to GMCVB through the net operating
income of the facility until paid in full.
4. City to contribute $3.2 Million
4. FDOT grant to City increased to $4.7
(approximately 50%) of project costs through a
Million (approximately 40% of project costs).
grant from FDOT. Agreements silent as to
City to use diligent effort to obtain additional
City's responsibility for cost overruns.
funding from FDOT and other sources. City
has no responsibility whatsoever for cost
overruns.
5. The aggregate rent paid by GMCVB is
5. The aggregate rent paid by GMCVB is
$23.33 SF.
$27.89 SF.' This increase is primarily due to
the settlement agreement with Chalks,
whereby rental revenues for use of airside is
extremely limited causing a shift of the
financial burden for operating and
maintaining the airport to the tenants in the
terminal building as opposed to being shared
with the users of the airside. Even though the
GMCVB does not use the airside, as the
major tenant in the terminal building, it will
be paying a majority share of all operating
expenses.
6. GMCVB entitled to a rent credit equivalent to
6. GMCVB rent credit fixed at $3.2 Million
$3.2 Million spread over the term of the lease.
despite increased construction contribution of
$7 Million.
' Other tenants pay an aggregate rent of $23.33 SF and Federal Inspection Services pays no rent.
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ORIGINAL AGREEMENTS
NEW AGREEMENTS
and Open Issues
7. Location of project did not require demolition
7. Shift of location of project by City requires
of any structures nor removal of fuel tanks and
demolition of Bait & Tackle Shop and
was silent as to environmental remediation, if
removal of Underground Storage Tanks
any was required.
(UST). The City to cause building to be
demolished at its cost. City to cause tanks to
be removed and be reimbursed by Bureau for
this cost. To the extent remediation is
required, Bureau will pay the first $60,000,
the City will pay the next $140,000. Either
party may cancel if cost of remediation
exceeds $200,000.
8. City responsible for the architect's services
8. City to assign GMCVB Professional
under the Professional Services Agreement.
Services Agreement with the architect.
9. City responsible for construction of Project
9. GMCVB to issue RFQ for Construction
including procurement of all construction
Manager at Risk and party to all construction
services.
contracts.
10. GMCVB responsible for maintaining,
10. Open: MSEA must determine the extent
repairing and providing operating services to the
that it will provide or cause to provide
building with reimbursement for costs beyond
building services such as procuring a/c and
GMCVB's pro rata share from other building
elevator services and pest control.
tenants/subtenants.
11. Agreements are silent as to relocation of
11. Open: Utilities must be placed
utilities outside of airport boundaries.
underground. Bureau has agreed to pay only
for the cost of utilities to connect to the
building. Funds must be identified to cover
the balance of the cost of utility relocation.
12. Agreements are silent as to construction of
12. City to fund construction of simple entry
access road to aviation center.
road to aviation facility.
13. City to receive PILOT from airport.
13. During negotiations with Chalks, the City
agreed to apply the first year's payment of
PILOT towards operating shortfalls. The
Interlocal and Bureau' agreements need to be
modified to be consistent.
14. MSEA to receive rents from Chalks during
14. Rent from Chalks during pre -construction
Phase I re -construction hase
shall be paid to City.
15. No press center
15. Bureau has agreed to pay 50% of the rent
due for the press center which contains
approximately 1,898 SF. The City will pay
the balance of the rent in the form of a
reduction of the PILOT.
16. No right -of -first refusal to food service area
16. Bureau will have a right -of -first refusal to
rent the food service area in the event the
sublease agreement with Bimini Landing
expires or is terminated.
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