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Home My WebLink AboutR-88-0479J=88-434 5/19/88 RESOLUTION NO, 814-47P A RESOLUTION APPROVING, IN PRINCIPLE, THE RECOMMENDATION OF THE CITY MANAGER FOR THE PROPOSED RENOVATION AND REDEVELOPMENT OF THE GUSMAN CULTURAL CENTER/OLYMPIA BUILDING (HEREINAFTER THE "PROJECT") AT A COST NOT TO EXCEED $6.121 MILLION; AUTHORIZING THE CITY MANAGER TO FINALIZE NEGOTIATIONS WITH FLAGLER LANDMARK ASSOCIATES CONCERNING SUCH PROJECT AND INSTRUCTING THE CITY MANAGER TO BRING THE PROPOSED AGREEMENT BETWEEN FLAGLER LANDMARK ASSOCIATES AND THE CITY TO THE CITY COMMISSION FOR THEIR APPROVAL PRIOR TO ITS EXECUTION AT WHICH TIME THE CITY COMMISSION MAY NEGOTIATE WITH FLAGLER LANDMARK ASSOCIATES TO REDUCE THE COST OF THE PROPOSED PROJECT; AUTHORIZING THE CITY MANAGER TO NEGOTIATE THE TERMS OF AN AGREEMENT BETWEEN THE DEPARTMENT OF OFF-STREET PARKING AND THE CITY AND INSTRUCTING THE CITY MANAGER TO BRING THE PROPOSED AGREEMENT WITH SAID DEPARTMENT TO THE CITY COMMISSION FOR THEIR APPROVAL PRIOR TO ITS EXECUTION BY THE CITY WHICH AGREEMENT SHALL PROVIDE FOR THE PROPORTIONAL SHARING OF ALL COSTS ASSOCIATED WITH THE OPERATIONS, MAINTENANCE, AND DEBT SERVICE INVOLVED IN THE PROJECT, SUBJECT TO THE AVAILABILITY OF A FINANCING MECHANISM WHICH MUST BE ACCEPTABLE IN ALL RESPECTS TO THE CITY COMMISSION. WHEREAS, the City owns the Gusman Cultural Center/Olympia Building property and has determined the need to redevelop the Gusman Cultural Center/Olympia Building; and WHEREAS, the Gusman Cultural Center/Olympia Building is one of Miami's most historically significant buildings, designated by the City Commission as a local historic site and also listed in the National Register of Historic Places; and WHEREAS, the Off -Street Parking Board and City Commission determined that the redevelopment and renovation of Gusman Cultural Center/Olympia Building (the "Project") would best be accomplished using the Unified Development Process (UDP); and WHEREAS, the City Commission, on July 18, 1985, authorized the issuance of the Request for Proposals for a Unified Development Project to redevelop and renovate the Gusman Cultural Center/Olympia Building property; and tl ATTACH�4W�J� CITY COMMISSION MEETING OF MAY 19 1988 RESOLUTION No. A8--479. WMEAS* the proposals submitted by Plaglet Landmark A§goeiatts# was received by the City and the Department of tiff- Street Parking in te8p0h§t to the request for fpt6p6talt on October 30# 1985# the published date for receipt of proposals; and WHEREAS# the City Commission# pursuant to Motion 86-628 adopted July 24# 1986 auth6ti2td and directed the City Manager to negotiate an agreement with Plagler Landmark Associates in connection with the proposed redevelopment/renovation of the Olympia Building and Gusman Cultural Center and further directed the City Manager to come back to the City Commission for final approval of the agreement prior to its execution: and WHEREAS, Resolution, No. 87-732 adopted July 23, 1987 accepted (in principle) the recommendation of the City Manager and the Off -Street Parking Board to accept the proposal submitted by Flagler Landmark Associates for the planning and design, construction, leasing and management including the renovation and restoration of the Olympia Building/Gusman. Cultural Center as -a Unified Development Project;,and authorized, the City Manager and the City Attorney in conjunction with the Department of Off - Street Parking to negotiate a contract with Flagler Landmark Associates, implementing said proposal; and further directed,the City Manager and the Department of -Off -Street Parkingto present the negotiated contract to the City Commission for consideration and approval by the City Commission prior to the execution thereof; and WHEREAS, the City and the- Department of Off -Street Parking have been negotiating with Flagler Landmark Associates., for the proposed renovation/red6velopment of the Gusman Cultural Center/Olympia Building ag.a Unified Development Project; and WHEREAS, the City Commission on June 23, 1987, duly passed and adopted Resolution No. 87-726, authorizing the -City to Join the Sunshine State Governmental Financing Com*is i n -for the M s 0 purpose of providing funds to -finance the cost of qualifying projects within the City; and �2- '88-,479 ro"N rIIN WHEREAS, the 'City C6mMi6§16h Oag§ed ktg6lUti6h No. 87-1141 bn bto6fttr It# 1§87# Adth6tigihg the City to submit an appliCation to the allMthiMe State 00VC-ththentAl Pihanding Commission for the PUtp6ge of negotiating a loan not to exceed $10#000,000 With pt60eeds from this loan to be used for the purpose of renovatloh/tedovelopment of the Outman Cultural Center/Olympia Building Project; and WHEREAS, the City Commission of the City of Miami, Plorida submitted an application to the Sunshine State Governmental Financing Commission to finance the cost of redevelopment/renovation of Olympia Building/Gusman Cultural Center and/or equipping of the Project and the financing expenses related thereto; and WHEREAS, the Sunshine State Governmental Financing Commission indicated that $7,200,000 would be made available for this Project; and WHEREAS, the City has determined that the cost of the Project and the financing expenses related thereto will not exceed $7,200,000; and WHEREAS, the City Manager and the Department of Off -Street Parking agree that the costs to renovate and redevelop the Gusman Cultural Center/Olympia- Building Project shall not exceed $6,121,000 as setforth in Exhibit I "Construction Budget" attached hereto and made a part hereof; and WHEREAS, the renovated Olympia Building will contain approximately 35,000 square feet of office space; and WHEREAS, the Department of Off -Street Parking has determined that it would utilize approximately 25,000 square feet of the Olympia Building for office and/or storage space and intends to enter into a long term agreement,for that amount of area; and WHEREAS, the City has determined that it would utilize approximAtely 10,000 square, feet for office and/or storage space in the Olympia Building and it intends to'enter into a long term agreement for that amount of area; and -3- 0 19137479, WHEREAS, the City and the bepartffient of off -Street Parking acknowledge that it is desirable to enter into a long term agreement to set forth their mutual intent to lease portions of the Gusman Cultural Center/Olympia Building property as set forth above; and WHEREAS, on April 27, 1988, the Board of Directors of the Department of off -Street harking adopted a resolution agreeing to participate with the City in the redevelopment of the Olympia Building and the renovation of the Gusman Cultural Center in accordance with Exhibit l attached hereto, sharing all costs on a pro rata basis, based on the space occupied, with the total not to exceed seventy (70) percent; and WHEREAS, the Department of Off -Street Parking anticipates the effect of a 70/30 split of all debt service, operating, and maintenance expenses, based on current interest rates to result in the first year rental amount of approximately $27.50 per square foot for the initial 12 month period (including operating and maintenance expenses at approximately $10.00 per square foot), and the amount of approximately $25.00 per square foot thereafter_' for the term of the agreement (including.operating and maintenance expenses at approximately $10.00 per square foot); and WHEREAS, the Board of Directors of the Department ,of Off - Street Parking authorized the Executive Director to negotiate an agreement with the City in accordance with the afore -described terms and rental rates, subject to a pro rata split with the City should there be any cost overruns in connection with the redevelopment and renovation of the; Project; and WHEREAS, the agreements for the City of Miami, and the Department of Off -Street Parking will run concurrently with the term of the loan, estimated to be for 24-years; and WHEREAS, the rental rates for the office. space will be determined by the cost of the annual loan repayment and all operating and maintenance charges; and , -4- 89-t dw 7.4 W14MAS; in addition to the office space in the Olympia building and GU§Mail Cultutal Cehteri the Project contaihs apptokiMately 1#000 Square feet of retail 'Space► currently leased, the rental of which will be applied to the annual debt service requirement for the repayment of the lean; NOWt THERLPORE, BE IT RESOLVED BY THE COMMISSION OR THE CITY OE MIAMI, PLORIDA: Section 1. The recitals and exhibit contained in the preamble of this Resolution are hereby adopted by reference thereto and incorporated herein as if fully Set forth in this Section. Section 2. The City Commission hereby approves, in principle, the recommendation of the City Manager for the proposed renovation and redevelopment of the Gusman Cultural Center/Olympia Building Project at a cost not to exceed $6.121 million in accordance with the Construction Budget attached hereto as Exhibit 1, and instructs the City Managerto finalize negotiations with Flagler Landmark Associates concerning such Project and further, instructs the City Manager to bring the proposed agreement between Flagler Landmark Associates and the City ,to the City Commission for their approval prior to its execution at which time the City Commission may negotiate with Flagler Landmark Associates to reduce the cost of the proposed project. Section 3. The City Commission hereby authorizes the City Manager to negotiate an agreement with the Department of Off -Street Parking (DOSP) which shall include among its terms a provision that the DOSP budget and appropriate on an annual basis, for the entire term of the Sunshine State Loan Pool borrowing, 70 percent of the total cost of the debt :service,' operations, and maintenance and other ancillary costs of the Project in consideration for which DOSP will occupy approximately.`. 25,000 square feet of the Olympia Building renovated office ,space and will transfer to the City upon request the entire ''DOSP' appropriation for the cost of the annual debt service and -5- 88--4'7.9 4 further# instructs the City tanager to bring the proposed agreement to the City Commission for their approval prior to its execution. Section 4. The City Commission shall appropriate on an annual basis for the entire term on the Sunshine State Governmental Financing Commission borrowing, 100 percent of the total cost of the debt service which will be inclusive of the annual transfer from DOSP for the repayment of the Sunshine State Governmental Financing Commission Loan Borrowing, and approximately 30 percent of the costs of operations, maintenance, and other costs of the project, in consideration for which the City will occupy approximately 10,000 square feet of the Olympia Building renovated office space. Section 5. All events and occurrences contemplated in this Resolution are subject to the availability of a financing mechanism which is acceptable to the City Commission in all respects. PASSED AND ADOPTED this 19th day of May , 1988. ATTE XAVIER L. SVbkEZ, MAYOR MATTY HIRAI, City Clerk PREPARED AND APPROVED BY: [� v . MIRIAM MAER Assistant City Attorney APPROVED AS TO FORM AND CORRECTNESS: A40Y 7 . c LUCrA A. DOUGHERTY City Attorney GMM/rcl/M708 - 6- 8 -4'79 OLYHVIA bUILDINVOUSKAN TBLATak k t�i Vl;LbpMBNT/ItI3t4OiiATIbN PROJECT CONSTRUCTU N BdBGgT Gunman Theater $10 n0 0000 Renovations Olympia Building 202920000 Renovations Interior Tenant Pinishes 744o000 (Assumes $18.00 per sg. ft.) Architect/Engineer @ 7$ 3100000 Management Costs i 0 - EXHIBIT 1 88--4'7.9