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HomeMy WebLinkAboutM-00-1104CITY OF MIAMI, FLORIDA 46 INTER -OFFICE MEMORANDUM TO: The Honorable Mayor and DATE : DEC - 4 2000 FILE Members of the City Commission SUBJECT: Survey of Children's Museums Rental Payments FROM: lme z REFERENCES: Discussion Item for Aity Manager ENCLOSURES: Meeting of 12/14/00 At the City Commission meeting of October 26t', 2000, the Administration was directed to conduct a survey on the issue of payment of rent by children's museums located in other cities. The Department of Real Estate and Economic Development contacted over 25 children's museums and received responses from twelve. The Association of Youth Museums, an organization located in Washington, D.C. that serves as a clearing -house for statistical data on youth museums, was also contacted. The study did not find any children's museum located on public property that pays rent to the municipality or county. Of the twelve museums responding, all 'pay a nominal $1 per year rent for the property. One museum, the Liberty State Park Museum in Jersey City, was found to have a rental structure that requires it to pay the City 3% of its revenues after a threshold number of visitors are reached. However, the museum only surpassed the targeted number of visitors, 600,000, in its first year of operation (1995). Findings of the survey conducted on lease arrangements for children's museums located in other cities and additional youth museum statistics are summarized in Attachments A and B. It is the Administration's recommendation that the Miami Children's Museum pay a Payment in Lieu of Taxes (PILOT) to the City for the Watson Island property. It is estimated that the annual PILOT will be $61,280.11. The PILOT is calculated by using the assessed value of the land and building (90% of market value taking into consideration the Parks and Recreation zoning of the property, the use restrictions on Watson Island, and the not for profit museum use), multiplied by the total area, multiplied by the City millage rate, as follows: Assessed Value Land: $36.18 Building: $90.00 DB/A, Cw Total Sq.Ft. Assessed Value Millage PILOT 65,340 $2,364,001 53,000 $4,770,000 $7,134,001 10.275 $73,301.86 00-1 6,14 • Attachment "A" NATIONAL SURVEY OF LEASE ARRANGEMENTS FOR CHILDREN'S This survey was conducted to compile rental and lease data for various Children's Museums across the country located on public property. Over 25 museums were contacted so that a representative sampling could be obtained, of which 12 responded. The following table summarizes the information collected: Lease/Rent Name CSC Amount Lease Term Boston Science Museum Boston $1.00 50 Brooklyn Museum of Art Brooklyn $1.00 Long-term Chicago Children's Museum Chicago $1.00 99 Children's Museum of Indianapolis Indianapolis $1.00 99 Creative Discovery Museum Chattanooga Donated outright None Discovery 2000 (McWane Center) Birmingham $1.00 99 Liberty State Park Museum Jersey City Lied Discovery Children's Museum Las Vegas $1.00 50 Museum of Discovery & Science Fort Lauderdale $1.00 Long-term Oregon Museum of Science Portland $1.00 25 Please Touch Museum Philadelphia $1.00 30 Port Discovery Kid Powered Museum of Baltimore Maryland Baltimore $1.00 99 *City receives a percentage of revenues after a certain number of visitors are achieved; after 600,000 City receives 3% percent of revenues. However, Jersey City only received a percentage rental payment in year one of approximately $20,000. Since the Museum's inaugural year, the number of visitors has not exceeded 600,000. ln� Attachment "B" ASSOCIATION OF YOUTH MUSEUMS MEMBER STATISTICS „ 2000 Statistics* 1999 Statistics* 1998 Statistics* Average annual attendance 171,732 151,049 151,586 Total annual Attendance 32,457,359 25,074,056 22,283,251 (N=189) (N=166) (N.=147) # of AYM member museums that have opened between: (N=213) (N=177) (N=156) 1976-1980 12 :: 12 13 1981-1985 27 24 21 1986-1990 41 35 34 .1991-1999 95 75 62 Average Admission for child $3.74 (N=192) $3.55 (N=168) $3.27 (N=147) Average Admission for adult $4.16 (N=192) $3.93 (N=168) $3.76 (N=147) . Average Admission for senior $3.76 (N=192) $3.59 (N=168) $3.46 (N=147) Average annual operating budget by .square footage: 7,500 and under $270,572 (N=46) $240,209 (N=37) $245,842 (N=32) 7,501 - 15,000 $358,193 (N=23) $415,382 (N=30) $401,048 (N=25) 15,001 - 30,000 $1,108,191 (N=40) $845,028 (N=33) $877,420 (N=28) 30,001 and over $3,436,554 (N=56) $2,803,408 (N=38) $2,373,850 (N=43) Average # of full-time and part-time staff by annual operating budget: (N=134) $250,000 and under Full-time 2.2 (N=50) 2.0 Part-time 4.6 (N=50) 5.3 $251,000 - $750,000 Full-time 6.02 (N=46) 6.5 Part-time 9.7 (N=50) 8.7 $751,000 and over Full-time 36.7 (N=70) 43.0 Part-time 34.5 (N=70) 39.9 Average cost per visitor $9.22 (N=150) . $8.15 (N=133) $7.47 (N=107) # of AYM member museums classified as: (N=212), (N=177) (N=152) Urban 151 120 107. Suburban 47 44 36 Rural 14 . 13 9 00 --� 0 .9 # with a gift shop 152 (N=215) 138 (N=184) 124 (N=155) Average profit per visitor from gift shop $0.59 (N=105) $0.31 (N=92) $0.39 (N=67) # with a theatre 81 (N=215) 76 (N=184) 67 (N=155) # with eating facility 39 (N=215) 41 (N=184) 32 (N=155) # with an early childhood exhibit 156 (N=215) N/A N/A 00-1104 Miami Children's Museum Proposed P.I.L.O.T.- In -Kind Payments Program Quanti Value* Total Value General Admission 100 $7.00 $8400 per month per admission Camp Tuition 16 one week $150 per week $2400 (summer) sessions per year Camp Tuition 2 one week $150 per week $300 (Spring or Xmas sessions Break Field Trip Two Classes per $150 per class of $3600 Admissions month 30 students After -School 20 class Class value $125 $2500 Programming- scholarships per Classes year Auditorium 12 rehearsals/or Minimum rental $3600 performances $300 Outreach Events 4 programs $500 $2000 annually Ed-U-Kit 2 per month $100 each $2400 Presentations Free Friday Ni hts 1 per month $2000 each $24,000 Total Projected $491200* * Value per year *These values are based on national average costs, these are approximate costs for MCM. MCM has not finalized its fees as of 12/2000 ** Plus the MCM would offer a discounted admission fee for City of Miami residents and permit City residents free access to the Parent Teacher Resource Center 00--1104 t �Pt °Ac