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Home My WebLink AboutR-92-0566J-92-667 9/16/92 RESOLUTION NO. 9 2 ~ 566 A RESOLUTION DECLARING THAT THE MOST ADVANTAGEOUS METHOD TO DEVELOP CERTAIN IMPROVEMENTS TO THE CITY -OWNED OLYMPIA BUILDING IS UTILIZATION OF THE UNIFIED DEVELOPMENT PROJECT (UDP) PROCESS; AUTHORIZING THE CITY MANAGER AND MIAMI PARKING SYSTEM TO PREPARE A DRAFT REQUEST FOR PROPOSALS (RFP) FOR A UDP; AND CONFIRMING THE SETTING OF A PUBLIC HEARING FOR OCTOBER 81 1992, AT 4:00 P.M., TO TAKE TESTIMONY REGARDING SAID RFP FOR REDEVELOPMENT OF THE BUILDING FOR RESIDENTIAL AND ANCILLARY RETAIL, RESTAURANT, AND CULTURAL USE ON CITY -OWNED PROPERTY LOCATED AT 174 E. FLAGLER STREET, MIAMI, FLORIDA: AND, AT THE CONCLUSION OF SAID PUBLIC HEARING, IF THE CITY COMMISSION IS DISPOSED TO PROCEED, AUTHORIZE THE ISSUANCE OF AN RFP, SELECT A CERTIFIED PUBLIC ACCOUNTING FIRM AND APPOINT MEMBERS OF A REVIEW COMMITTEE TO EVALUATE PROPOSALS AND REPORT FINDINGS TO THE CITY MANAGER AS REQUIRED BY CITY CHARTER SECTION 29-A(c) AND CITY CODE SECTION 18-52.9. WHEREAS, the City of Miami Charter Section 29-A(c) and City of Miami Code Section 18-52.9 provides for utilization of "Unified Development Projects" where an interest in real property is owned or is to be acquired by the City and is to be used for development of "integrated" improvement packages; and WHEREAS, the City Commission must determine that for the redevelopment of the Olympia Building for residential and ancillary retail, restaurant and cultural use on approximately 0,000 square feet of City -owned property located at 174 East CITY COMMISSION MEETING OF S C P 2 4 1992 Resolution No. 92- 566 - v Flagler Street, Miami, Florida, comprised of a ten (10)-story office building (hereinafter "Olympia Building") contiguous to - - Gusman Center for the Performing Arts, that it is most advantageous for the City to procure from a private person one or more of the following packagers Planning and design, construction and leasing; or - Planning and design, leasing and management; or Planning and design, construction and management; or - Planning and design, construction, leasing, and management; and WHEREAS, the City Commission directed the City Manager and Miami Parking System to initiate the process for a Unified Development Project for the Olympia Building; and WHEREAS, Section 29-A(c) of the City Charter further requires that the City Commission hold a public hearing to consider the contents of the Request for Proposals (RFP); and WHEREAS, Section 29-A(c) further authorizes, at the conclusion of said public hearing, if the City Commission is disposed to proceed, issuance of an REP, selection of a certified public accounting firm, and appointment of members to a review committee from persons recommended by the City Manager; �I NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY !i OF MIAMI, FLORIDA: ±� Section 1. The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference "1 thereto and incorporated herein as if fully set forth in this Section. -2- 92_ 566 Section 2. It is hereby determined that it is most z advantageous to the City, for the redevelopment of the Olympia 't Building for residential and ancillary retail,. restaurant and cultural use of City -owned property located at 174 East Flagler Street, Miami, Florida, that the City, utilizing Unified i Development Project (UDP) procedures, procure from a private i person the following integrated package: Planning and design, construction, leasing and It management. I Section 3. The City Manager and Miami Parking System as authorized herein, shall prepare a draft Request for Proposals a for a UDP for the development of the improvements as set forth in Section 1 hereinabove. Section 4. A Public Hearing to consider a UDP Request I; for Proposals for the redevelopment of the Olympia Building for II' residential and ancillary retail, restaurant and cultural use on I City -owned property located at 174 East Flagler Street, Miami, Florida, is hereby scheduled for October 8, 1992 at 4:00 P.M. Section 5. As required by the City Charter and Code, the City Commission shall, at the conclusion of the Public Hearing, if disposed to proceed, authorize the issuance of a Request for Proposals, select a certified public accounting firm and appoint members of a review committee to evaluate proposals and render a i written report to the City Manager. Section 6. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 24th ATT MATTY HIRAI CITY CLERK PREPARED AND APPROVED BYS Co. A 4 . j CJET.MAXWELL ASSISTANT CITY ATTORNEY JEM/ep/bss/M3151 APPROVED AS TO FORM AND CORRECTNESS: 0 - A-04i 92- 566 -4- CA-5 TO: Honorable Mayor and DATE: August 12, 1592 Members of the City Commission FROM: Clark Cook SUBJECT: Declaration -of UDP Executive Director for Olympia wilding Miami Parking System REFERENCE: For City Commission Meeting of 9/10/92 RECOMMENDATION: It is respectfully recommended that the City Commission adopt the attached Resolution declaring that the most advantageous method to develop certain improvements to the City -owned Olympia Building at 174 E. Flagler Street is by a Unified Development Project (UDP). This resolution furthermore authorizes the City Manager and Miami Parking System to prepare a draft request for proposals (RFP) for a UDP, and confirms the setting of a public hearing for October 8,. 1992, at 4:00 p.m. At this hearing, the Commission will take testimony regarding said RFP for redevelopment of the building for residential and ancillary retail, restaurant, and cultural use. At the conclusion of said public hearing, if the City Commission is disposed to proceed it will authorize the issuance of an RFP, select a certified public accounting firm and appoint members of a Review Committee to evaluate proposals and report findings to the City Manager as required by City Charter Section 29-A(c) and City Code Section 18-52.9. BACKGROUND: When philanthropist Maurice Gusman deeded the Olympia Theater and the ten -story Olympia Building to the City of Miami in 1975, it was envisioned that office rents would offset operating losses of the theater (now Gusman Center for the Performing Arts). Initially this concept proved successful. During Fiscal Year 86/87, however, rental revenues from the Olympia Building were negatively impacted by the relocation of a number of tenants in anticipation of a major redevelopment. When the project failed to materialize, due to the condition of the building and the continued high office vacancy rate in Downtown, tenancy in the Olympia Building became very difficult to restore. This problem was further compounded by the relocation of City of Miami offices to the DuPont Plaza in 1992. 92- 566 C#s-/ The deficits from operation of the G & 0 Enterprise Fund for Fiscal Years 1988/89 through 90/91 (excluding depreciation) were as follows: EX DEFICIT 1988-99 $379,308* 1989-90 227,820 1990-91 169,755 *Adjusted for $188,661 for the purchase of services from Flagler Landmark Associates and related legal costs, the operating deficit would have been $190,647. The projected deficit for FY91/92 is approximately $260,000. This increase reflects the loss of City offices during FY 91/92, the soft theater rental market in general, and unforseen cancellations by a few key theater tenants. The Miami City Ballet relocated its entire season to Dade County Auditorium due to space constraints. The New World Symphony moved several user dates to its own, smaller theater. The Florida Philharmonic relocated its "Prom" Series to Dade County Auditorium for marketing reasons. In all, Gusman could have lost 51 user days. Instead, Gusman staff successfully rebooked 26 of these days on very short notice. OUTLOOK FOR FY 92 -93 Gusman Center and Miami Parking System management have implemented several new strategies to minimize the Gusman deficit and strengthen its financial position. It has Developed an analysis to support an RFP for redevelopment of the Olympia Building for residential use. Cash flow from the project would generate sufficient cash flow to fund the Gusman Center deficit. The attached resolution initiates the UDP process to accomplish that objective. Developed an aggressive marketing strategy and customer relations program to reposition the theater more competively. This plan addresses audience development, promoter incentives including rate restructuring, promotions to new markets, better parking access, co -promotions with other arts organizations, and the resurrection of a limited Gusman- produced series to increase donor support and generate additional ticket and concession revenues. 92-- 566 IFAI -3- Developed a plan to diversify funding sources through continued Friends of Gusman Board expansion, new membership programs, and aggressive pursuit of operating support through private foundations. A public campaign for private and foundation capital dollars to support theater renovation will be underway this year. Renegotiated Gusman Center's TicketMaster contract. Had the new contract been in force during FY 1991/92, commissions from ticket sales would have been $30,000 greater. Solidified Gusman Center's relationship with its resident companies including Miami Skyline Theater and Momentum Dance. Momentum Dance and Gusman have already succeeded in joint fundraising through County grant programs. This year, Gusman and Miami Skyline will cooperate in several joint fundraising efforts. With the above in place, the award of an Olympia Building redevelopment contract by March -April 1993, and construction beginning six months thereafter, the deficit projected (budgeted) for FY 1992/93 is $275,000. PROJECTED BREAK-EVEN Market research and professional consultation suggest that the redevelopment of the Olympia Building for residential and ancillary restaurant, retail, and cultural use, could provide a lasting solution to the G & 0 deficit problem. Moreover, residential use would be compatible with the Downtown Master Plan and with programming objectives at Gusman Center. Assuming construction on the Olympia Building begins early in FY 1993/94, with leasing underway by the yearts end, lease payments would begin to impact G & O's operating performance by the start of FY 1995/96. Projected operating performance for FY 1993/94 through FY 1996/97 is as follows: Ex DEFICIT 1993/94 $200,000 1994/95 100,000 1995/96 $50,000 1996/97 0 92- 566 IN ..4.. The above analysis demonstrates the urgency and importance of initiating the Olympia Building Unified Development Project (UDP). Successful redevelopment of the Olympia Building within the proposed timeframe would begin to alleviate the burden of a Gusman subsidy in FY 1993/94 and eliminate it by FY 1996/97. Gusman Center is important to the quality of life in this community, to the revitalization of Downtown, and to over 160 of Miami's diverse performing arts organizations who perform there regularly. For these reasons, the above approach warrants the Commission's approval and endorsement. UNIFIED DEVELOPMENT OF THE OLYMPIA BUILDING The redevelopment of this space requires an experienced team of professionals with a proven record in all aspects of housing redevelopment, management and leasing. The project's complexity and urgency demand this comprehensive approach. For this reason Miami Parking System recommends that the attached Resolution, in its entirety, be adopted by the City Commission. This Resolution designates the Olympia Building project at 174 E. Flagler Street as a Unified Development Project (UDP), authorizes Miami Parking System and the City Manager to prepare a draft RFP, and confirms the setting of a public hearing for October 8, 1992 at 4:00 PM to take testimony regarding said RFP, in accordance with City Charter and Code requirements. Attachment: Proposed Resolution 92- 566 RESOLUTION NO. 92-859 A RESOLUTION RECOMMENDING TO THE CITY MANAGER THE REDEVELOPMENT OF THE OLYMPIA BUILDING AS A UNIFIED DEVELOPMENT PROJECT AND TO INITIATE AN RFP PROCESS AS PROVIDED FOR IN THE CITY OF MIAMI CHARTER SECTION 29-A AND THE CITY OF MIAMI CODE SECTION 18-52.9, WHEREAS, the Off -Street Parking Board has determined that it would be in the best interest of the Gusman and Olympia Enterprise Fund to seek proposals from a private party to redevelop the Olympia Building; and WHEREAS, Section 29-A of the City of Miami Charter and Section 18-52.9 of the City of Miami Code specifies that a Unified Devlopment Project (UDP) shall mean a project where an interest in real property is owned or is to be acquired by the City and where the project involves one or more of the following integrated packages: (1) planning and design, construction and leasing; or (2) planning and design, leasing , and management; or (3) planning and design, construction, and management; or (4) planning and design, construction, leasing and management; and WHEREAS, the Off -Street Parking Board net on July 29, 1992 and determined that the most advantageous approach to redeveloping the Olympia Building is to procure from a private party an integrated package of planning and design, construction, leasing and management. NOW, THEREFORE, BE IT RESOLVED BY THE OFF-STREET PARKING BOARD OF THE CITY OF MIAMI, FLORIDA: The Board hereby recommends to the City Manager that the RFP process be initiated to redevelop the Olympia Building as a Unified Development Project. PASSED AND DOPJ D this 29th day of July, 1992. SWAA9 Harold J. 114anasa, Treasurer GORT, CHAIRMAN 92- 566