HomeMy WebLinkAboutItem #19 - Discussion ItemCITY OF MIAMI, FLORIDA 22
INTER -OFFICE MEMORANDUM
to: The Honorable 1\Iayor and i�.tembers DATE GEC FILE
of the Cit 'ommission
FROM : onal i. ars I M'
City Manager
SUBJECT: Manuel Artime Community
Center
REFERENCES:
ENCLOSURES:
Discussion concerning the financial status of the Manuel Artime Community Theater
("Theater Building") located at 900 SW 1 Street and the Manuel Artime Community Center
("Office Building") located at 970 S«' 1 Street, Miami, Florida.
Backaround:
In 1992, the City Commission adopted Resolution 92-88 which set criteria, requirements and
procedures used when issuing revocable permits for the use of space at the Manuel Artime
Center. This resolution provided for the issuance of revocable permits by the City Manager to
non-profit entities with priority given to cultural entities. The permits that have been issued
by the City Manager pursuant to this resolution provided for a fee in the amount of $4.50 sf.
This rental rate has been in effect for more than 14 years. If this amount were adjusted for
inflation, the rate would currently be approximately $ 7.00 sf.
The City is currently subsidizing the use of the buildings in the amount of
jy approximately $250,000/year.
1
Current, Use
Presently there are nine agencies who occupy office space within the Theater Building.
1 Additionally, there are six agencies who occupy office space within the Office Building. The
current monthly fees range from S1/year to $4.50 sf. This fiscal year, the City will receive
approximately S47,000 in revenue from the office rentals. A copy of the rent roll for the
. Theater Building and the Office Building listing the agencies who occupy each of these
} buildings and their respective monthly fees is attached hereto as Exhibit A for reference.
#� The current rate for use of the theater is $350 per performance. «'hen an admission fee is
charged, the City is to receive 10% of gross ticket sales in addition to the S350. Earlier this
year the City Commission adopted Ordinance 11750 which provided a waiver of the 100/0 of
gross ticket sales charge for non-profit entities. This waiver was for a one year period which
rill expire February 11, 2000. This fiscal year there were 54 events held in the theater which
generated approximately $27,400. Additionally, the City held four events in the theater.
l Presently there are 38 events tentatively scheduled for FY 2000, five of which are Citv of
Miami events.
9
IM
Honorable Mayor and Members
of the City Commission
Page 2
Afarket Rent Aizal srs
The Office of Asset Management has conducted an analysis of market rents for similar type
office buildings in the area. A copy of their analysis is attached hereto as Exhibit B. Based
upon same, the market rent for use of the Office Building would be $8.50 s.f. The market rent
for office space within the Theater Building would be $7.75 s.f. The proposed market rent
provides for each office tenant to pay rental on its proportionate share of the common areas.
The common area factor to be utilized is 1694). This means a tenant using 500 s.f. of office
space would pay rent for 565 s.f.
The Department of Public Facilities has analyzed the current rate structure for use of the
theater and compared it against rates charged by similar facilities. A copy of their suggested
rental rates is attached hereto as Exhibit C.
Reconznzenclation for Oifice Space:
Wwould recommend the City Commission adopt the suggested market rates of $8.50 sf for
the Office Building and S7.75 sf for office space in the Theater Building for any new license
agreement with for -profit entities. We would further recommend that non-profit agencies
receive a 25% discount from the market rates or $6.38 sf for the Office Building and S5.81 sf
for the Theater Building. The new rates for non -profits would be applicable for any new
license agreements and to any expansion space for existing licensees. The square footage
calculation Nvould include each licensee paring its proportionate share of the common area
expenses. «'ith the adoption of the rates suggested above, the subsidy by the City could be
reduced in future years.
Additionally, we would recommend the City Manager be authorized to enter into license
agreements with agencies paying the adopted rental rate. The license agreements would
include language for increases based upon increases in the consumer price index to cover the
increased cost of providing services to the building.
0
Honorable Mayor and Members
of the City Commission
Page 3
With respect to existing licensees, we would recommend that the licensees paying $4.50 sf be
permitted to continue paying the same rate for their existing area. There are currently four
licensees, National Journalist. Association of Cuba, Spanish American League Against
Discrimination, Colegio de Abogados and Jefatura I111litar Conjunta (Brigade 2506), paying
51.00/yr in the Theater Building. These organizations are utilizing their respective offices on
a limited basis. We would recommend that these organizations be relocated into a single
office where they could each locate a desk and file cabinet and could share in the use and
expense of office equipment such as a fax machine and copier. In the event these
organizations need to schedule a meeting, the City would work Nvith them to provide a
meeting room for their use. The onl\- licensee pat-ing 51.00/yr in the Office Building is the
Lions Home for the Blind. Given that the utilize the premises on a regular basis, we would
recommend the City be authorized to Nvork with them to develop a plan for monthly fee
payments to the City- in the future. NVe would further recommend the City A'lanager be
authorized to issue revocable license agreements with these existing licensees upon
negotiation of a mutually acceptable agreement.
Recommendation for Theater:
We would recommend the City Commission approve the rental rates suggested in Exhibit C.
In this manner, the City Nvill be able to at a minimum cover direct costs associated with an
event such as security and janitorial services.
DHW.-DB:L :mhLA,CC ag
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Tenants
Manuel Artime Tenants
Updated 7-31-99
900 S.W. t St
EXHIBIT A
Room
Tenant
Sq Ft
S / Sq Ft
Rent
Annual Rev
200
Nat'l Journalist Assoc of Cuba
428.E
5
1,00
yr
S 1.00
201 _
Spanish Amer. League Agnst. Disc.
223.8
$
1.00
yr
S 1.00
202 A
Fundacion de Raices Cubanos_
136.4
5
4.50
S
51,13
mo
S 613.56
202 B
Vacant
111.E
-
$
203
Catholic Comm. Serv. (clothes)
60.0
5
3.35
$
16 73
rno
S 200.76
204 A & B
Instituto de Cu;tura Hispanica
2268
S
4.50
S
85,05
mo
S 1,020.60
204 C & D
Colegio de Abogados _
226.1
$
1 00
yr
S 1.00
205
Vacant
133.6
$ -
206
Jefatura Militar Conjunta (Brigade 2506)
391,0
$
1 00
yr
S 1.00
300
Colegio Nat'l de FarmaceuDcas
_ 58.5
S
4,50
S
21.94
mo
S 263.28
300
Vacant
175.5
$
302
Vacant
1701
$
306 A
Vacant
170.1
$
306 B
Miami Hispanic Ballet
187.3
$
4.50
5
70.24
mo
S 842.88
Choir room
Vacant
732.6
S -
TOTAL
3,532.0
$
247.09
$ 2,943.08
970 S.W. 1 St
Room
Tenant
Sq Ft
S ! Sq Ft
Rent
Annual Rev
200 & 201
Auditorium (Vacant)
1.817.0
$
202 & 203
Vacant
540.0
S
204 - 207
Catholic Comm. Serv. (day care)
4,291.0
S
4.50
5 1,609.13
mo
5 19,309.56
300
Conference Room (Vacant)
591.0
$ -
301
Vacant
0.0
$ -
302
Catholic Comm. Serv. (counseling)
1,195.0
5
3.35
$ 333.27
mo
$ 3,999.24
303 & 304
Action Community Center
991.0
S
4.50
S 371.63
mo
S 4.4%56
305
Vacant _
1,881.0
$ -
S -
306& 307
Fifty -Five Years & Up (vacated 7/31/99)
1,308.0
S
4.50
$ 490.50
mo
5 5,886.00
400 & 401
Confernce Room (Vacant)
590.0
$ -
402- 405
Lions Nome for the Blind
2,503.0
$ 1.00
yr
$ 1.00
406
Fundacion Manuel Airtime
671.0
S
4.50
S 251.63
mo
$ 3,019.56
407 & 408
Little Havana Development Authority
1.569.0
5
4.50
S 588.37
mo
$ 7,060.44
TOTAL
17,947.0
$ 3,645.53
$ 43,735.36
COMBINED POTENTIAL INCOME $ 46,678.44
Rent Comparables for 900 S.W. 1st Street
EXHIBIT B
Address Contact Type of Building
Spaces Available
Rent p.s,1, Terms
Comments
Adjusted Rent
849 SW t Cindy Knrlln: 1-sty, free standing, 2-
4,000% 1
$ 7.50 not including water, electricity, Interior Building Is 1-sty free standing with retail exposure, good parking
$7.60
Street (305) 545-892 7 tenant fjwhord os MD
malnt., trash, and janitorial
behind building. Slmllnr location to Sabjecl.
offices (boOdinli Inlal
4,000 s it
620 SW 1 (305) 545 6485 1-sty, (we standing. 2-
1,700 +6 s.f.
$ 5.29 full service not of Interior janitorial
Building Is 1-sty free standing with retail rxposufe, poorer
$5.29 +10 %
Street lenani built out as retail
condition and poor parking behind building OTI IER TENANTS:
(parking) - $5.62
rind offirr(huilding total
law office
3000 +1-s t )
1492 W. Flaglor Beckman 2-sty, office building, multi
4,0000. b 6,O00s 1.
$ 12.00 full service nel of interior janflodal
Building is a multi tenant office building in very good condition
$12 00.20 % j(•
Street (305) 557-5205 tennnt
(ground Boor)
and available space was hulll-uul In recent years as medical
305t build cond.)
olBeo. Poorparking CITHER TENANTS FPM Medical Group of
and (+101A
Little Havana, Alianfic. Stamp and Seal, Empire Corporate Kits
poorer parking))
= $9.60
1401 W. Flagler Atbio Acebo 2-sty office building; multi. 700 s.f. (ground Boor) $ 13.00 full service Building Is a multi tenant office huitding in average cond'dion and
Street (MCM tenant available space was built oul with waiting and reception areas
Engineering): and three offices. The space has independent exterior entrances
(305) 541-6069 on the ground Boor. Good parking behind building. N/A
990 SW 1 Kim Spicer 3-sly office building; mulli- 2.500 s 1. (ground $ 17.60 full service net of Interior janitorial Building Is rnulli-tenant office. building in good condition. Located
Street ((954) 979- tenant. Ground Boor has Boor) two doors west of 970 building. Space available has retail -like N/A last vacant
5082 retail exposure exposure. OTHER TENANT'S'. Florida Dept Child. and Family, space and there
and Florida Department of Corrections. appears to be a
premium for
government
leases because
of built -outs
1393 SW 1 Ann Fauth 4-sty office building; multi- 120 s 1.. 200 s.f., 770 120s.10 full service net of Interior janitorial. Building Is a multi-lenanl orrice building In good condition and is $7.5 (*10%
Street (305) 643 5313 tenant. Spaces vary from s (., and various 200- $15.00; Building has larger tenants which mostly built -out as small offices with common interior corridors. parking and -
120s.f. to 1,000+1.s.t. 300s I. an 41h floor remainder have stops on RE taxes and Similar condition as 970 and in better condition than 900. 10 % build
of spaces Insurance Parking is behind building and is poorer. tend.)= $7.50
$7.50
1430 S.W. 1 Jean 2-sty office building; multi. 350 s l., 800 s.f., 300s.f.Q full service net of Interior janitorial. Building is a multi-lenanl office building in poor condition and is $7.50 * 10%
Street Paul(Manager) tenant. Spaces vary from 2.000 s U. 3.000.s.f. $6.00; mostly built -out as small offices with common interior corridors. (parking) = $8.25
(305) 473-5444 350 51. to 3.000 +/- s f. remainder Similar condition to 900 but had elevator. Landlord can combine
of spaces@ up to 14,000 s.I. on 2nd Boor for government agency.
$7,50
OTHER TENANTS. Immigration Office, Popular Cash Express.
Life Center. Medical Office.
s 180o S W. 1 for. Kahn. (305) 2. and 3-sly office 450 s.f., 5100 s.f. 11.00; full service net of interior janitorial Building is a rnulli-tenant office building in good condition. $10,00 -20% (•
w Street 662.2301 building; mulli-tenant. current Similar condition to 970 and better than 900. Parking good and 10 % build cond.
Spaces vary from 4500. leases at located on ground Boor and behind building. Location is better. and -f0 %
to 5100 +1 s.f. $9.00• 15% CAF, VacRale 36% for past 2 years,$2.00 elec.,poor location) = $8.00
411.00 tenants
r.
soo s W , Average
iz ji Street $7.78;
rounded to
�, $7.75
Bent Comparables for 970 S.W. 1st Street
EXHIBIT B
Address
Contact Type of Building Spaces Available
Rent p.s.f. Terms
Comments
Adjusted Rent
849 SW 1
Cindy Knrtin 1-0y, her standing; 2- 4,000s t
$ 7.50 not including water, electricity, interior
Building is 1-sty free standing with retail exposure, good parking
$7.50 +10%
Street
(305) 545 8927 Iensnt builtoutas MO
maint., trash, and janitorial
behind building. Similar location to Subject.
(build rand.) _
Offices (buitd,ng total
$8.25
40005II
620 SW 1
(305) 545 6465 1 st), free slandurg, 2. 1,700 +/- s f
$ 5 29 full service not of interior janitorial
Building Is 1-sty free standing with retail exposure, poorer
$5.29 -20%
Street
fenanl bUIIFOUI as retail
condition and poor parking behind building. OTHER 'TENANTS:
(build cond. and
and office(building total
law orrice
parking) = $6.34
3,000 +1 s I )
1492 W, Flagler B(ickman (305) 2-sty, once building, nitilli 4 000s f. R 6,000s 1.
$ 12.00 full service net of Interior janitorial
Building is a multi tenant office building in very good condition and
$12.00.1096 1(-
Street
557.5205 tenant (ground floor)
available space was built oul in recent years as medical office.
20 build cond J
Poor parking OTHER TENANTS FPId Medical Group of Little
and 1+10 poorer
Havana, Atlantic Stamp and Seal, Empire Corporate Kits.
parkinp)) _
$10.80
1401 W. Hagler Albio Acebo 2-sly office building; multi. 700 s t. (ground floor)
$ 13.00 full service
Building is a mull, fenani officr building in average condition and
Street
(MGM tenant
available space was built -out with wailing and reception areas and
Engineering)-.
tluee offices The space has independent exterior entrances an
(305) 541-G869
the ground floor. Good parking behind building.
NIA
990 SW 1
Kim Spicer 3 sty office building; multi- 2,500 s.I. (ground
$ 17.50 full service not of interior janitorial
Building is multi -tenant office building in good condition. Located
Street
((954) 979 tenant. Ground Poor fins floor)
two doors west of 970 building. Space available has retail like
N!A last vacant
5062 retail exposure
exposure. OTi IER TENANTS Florida Dept Child. and Family,
space and there
and Florida Depanmeni of Corrections
appeares to be a
premium for
government
leases because
of built -outs
1393 SW 1
Ann Fauth 4sty office building, milli- 120 s.1., 200 s t.. 770
120s.f@ full service net of Interior janitorial.
Building is a rnulli-tenant office building in good condition and is
$7.5 - 10%
Street
(305) 643 5313 tenant. Spaces vary firm s.f, and various 200-
$15,00; Building has larger tenants which have mostly built -out as small offices with common interior corridors.
(parking) = $8.25
120s.f. to 1,000+1-s f. 300s I. on 41h floor
remainder slops on RE taxes and insurance
Similar condition as 970 and in better condition than 900. Parking
of spaces
is behind building and is poorer.
$7.50
1430 S.W. 1
Jean 2-sty office building; multi- 350 s 1.800 s f.,
300s.t.@ full service net of interior Janitorial.
Building is a multi tenant office building in poor condition and is
$7.50 -
Street
Psul(Manager) tenant. Spaces vary from 2,000 s U. 3,000.s.L
$6 00:
mostly built -out as small offices with common interior corridors.
20%(build cond.
(305) 473 5444 350 s I. to 3.000 +!- s.1.
remainder
Similar condition to 900 but had elevator. Landlord can combine
and parking) _
of spaces@
up to 14,000 s.t. on 2nd floor for government agency.
$9.00
$7.50
OTHER TENANTS: Immigration Office, Popular Cash Express,
Life Center, Medical Office.
1800 S.W. 1
Mr. Kahn-. (305) 2- and 3-sty office 450 s.f., 5100 s.f.
11.00; full senile net of interior janitorial
Building is a multi -tenant office building in good condition. Similar
$10.00.10%
Street
GG2-2301 building; multi-lenant
current
condition 10 970 and better than 900. Parking good and located
(location)
Spaces vary from 450s.(.
leases at
on ground floor and behind building. location is better. 15% CAF,
$9.00
to 51 DO +1- s f.
5900-
VacRale 36% for past 2 years,$2.00 elec.,poor tenants
$11.00
970 S W. 1
Street
Average
$8,60;
rounded to
$8.50
it
EXHIBIT C
i
! MANUEL ARTIME COMAIUNITY THEATER
Proposed Rental Fees for Use of Theater
Rental Fee (4 hrs or less)
For -profit organizations
$700.00
(against 10'0 of ticket. sales)
Non-profit organizations a
$600.00
(against 10% of ticket sales)
Second performance on same day*
$350.00
Rental Fee (2 lirs or less)
Weekends
$450.00
Weekdays
$350.00
(with no ticket sales such as graduation, conferences, etc.)
Rehearsal Fee (4 firs or less)
On non-performance date (weekends)
$350.00
On non-performance date (weekdays 8:00 AM - 10:00 PM)
$250.00
On performance date
$100.00
1 Rehearsals with no performance
$550.00
NOTE: Rental includes all light (95 instruments) and sound
(24 channel audio mix
console, microphones, cables, cassette player, etc) equipment, two follow -spot,
piano