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Home My WebLink AboutItem #79 - Discussion ItemTO: Honorable Mayor and Members of the City Commission DATE: October 30, 1987 FROM: John J. Mulvena SUBJECT: GUSMAN/OLYMPIA BUILDING Executive Directcq(� RENOVATION FINANCING Department of Off -Street -Parking RECOMMENDATION It is recommended that the City Commission approve the attached Resolution authorizing the City Manager to submit an application to the Sunshine State Governmental Financing Commission for the purpose of financing the Gusman/Olympia Building redevelopment. Repayment of loan pool borrowing will be secured by the rental payments of the City and the Department Of Off -Street Parking for the lease of office space. The lease will run commensurate with the term of the borrowing estimated to be for thirty (30) years. BACKGROUND Approval to issue a Request for Proposals was given by the City Commission on July 18, 1985. The sole bid, received on November 28, 1985, was Flaglor Landmark Associates which includes Al Cardenas, Jim Beauchamp, Jaime Borelli, and Art Hill as principals. The City Commission adopted Motion No. 86-628 on July 24, 1986, authorizing and directing the City Manager to negotiate an agreement with Flagler Landmark Associates in connection with the proposed redevelopment of the Olympia Building and Gusman Cultural Center and further directed the City Manager to come back to City Commission for final approval. The project, approved conceptually by the Off -Street Parking Board and the City Commission, envisioned investment of approximately $10.0 million for the restoration of the Olympia Building and Gusman Center with the City of Miami And thA Department of Off -Street Parking occupying all available office space. The retail space is currently leased with an average of eight years remaining on the leases. The financial basis of the transaction assumes rental of all office space on a long term basis by the Department of Off -Street Parking and the City of Miami at rates beginning at $22.00 per square foot. It is projected that the income stream from the project would be sufficient to cover all expenses including debt service. The Department of Off -Street Parking has a commitment to lease for office space approximately 25,00C square feet of office space and the City of Miami commitment is for approximately 35,000 square feet both at a beginning rate of $22.00 per square foot. A final agreement will be brought to the City Commission for review and approval in December, 1987. CONCLUSION It is recommended the Sunshine State not to exceed $10 11 Att. that authorization be given to the City Manager to apply with Governmental Financing Commission for financing in an amount million. / E r/ NULLS• FP - NULL FRAUD" ILEGAL - APPLICATION -BID TO CONTRACT REDEVELOPMENT - OF "GUSMAN HAIL," BY COMPANY WITHOUT LEGAL j r LIFE WHEN SUBMIT APPLICATION - r OPOSSE THAT THE CITY OF MIAMI AUTHORIZE THE CITY MANAGER TO NEGOCIATE A -LOAN OF $10 MILLION DOLLASR'TO BE USED FOR REDEVELOPMENMT OF GUSMAN HALL BY "FLAGLAR LANDMARK ASSOCIATES,INC. WE EXPLAIN OUR OPINION IN rFFkVj POINTS, SHORTLY: FIRST :CITY COMMISSION WAS GIVING APPROVAL FOR PROPOSAL FOR REDEVELOPMENT OF GUSMAN HALL ON=a�JULY$`18'; ! 985. SECOND-' bN `�IOVi [B 'R h` r` 198 WAS A RECEIVED A BID BY "FLAGLER LANDMARK AL CIATES" WHICH INCLUDES ATTORNEY ALBERTO CARDENAS. THIRD: ON JULY 26, 1986, the CITY COMMISSION AUTHORIZE CITY MANAGER TO NEGO- .. -- CIATE WITH "FLAGLER LANDMARK ASSOCIATES" FOUR: ON JANUARY 1987... REPEAT,ON JANUARY 195 attorney ALBERTO CARDENAS REGISTERED WITH THE Secretary of State of the State of Florida a CORPORATION UNDER THE NAME "FLAGLER LANDMARXASSOCIATES, INC."'.'and him as the ONLY ONE DIRECTOR AND REGISTERED AGENT: FIFTH: BUT BEFORE IANUARY L987",: on NNOOVEMBER 26,1985, HIS CORPORATION "FLAGLER LANDMARK ASSOCIATES" WITHOUT LEGAL LIFE; APPLY WITH THE CITY OF MIAMI AND "OFF STREET PARKING DEPARTMENT" FOR A CONTRACT OF OVER $jj0 MILLION DOLLARS... AND THE MONEY HAD TO BE PAY BY THE PEOPLE OF MIAMI AS A LOAN FINANCING BY THE CITY OF MIAMI... THAT MEANS ALL THE TAXPAYER OF CITY OF MIAMI. FINALLY, ON DUNE 23Wj2 THE CITY COMMISSION AUTHORIZE BY RESOLUTION^ 87-726 TO CITY MANAGER TO JOIN THE INTERLOCAL GOVERNMENT AGREEMENT LOAN FOR THE PROJECT OF MR. ALBERTO CARDENAS AND THE "FLAGLER LAND- MARK ASSOCIATES,INC." . WE REQUEST FROM THE CITY COMMISSION' BECAUSE ALL THESE ARE VERY CONFUSSE AND STRANGE THAT : STOPS ANY , DELIBERATION, ABOUT-,,MUS�ORODAN * QF 0 MILLION DOLLARS and START ANDMWESTIGATION ''FLAGLERi LANDMARK;ASSOCIATES^&INci r- .ry � '"'max ?3.. y "v�.�Ya�,..•'.�:3?`��-�:`"��'�1.�`"M""f�:s"°'N+=w:y�a' '.sv:i r +'>-.r"y�,C �"' ,r._ _ _ .,,�: C �"3 ,wY } F '7t "{, } ,1 ! }AL.� F � '� La 0. s..Y `S $ � t � � . .. Y .h !j - .. .��yyp„1..,• ,, t . t. ON • ' 1l•!; Ik: - �i d,hl �'• . �. i t. w . C:`..� xr''P'�tg-+e, �ii}ili��::i'i i`.11.7 ;ii.•:33:�1t1•(l itr i.;�►#tt)i::rs;�;., -� � � . -��_�� r r' w�i�ilTFl 14":t"WAYNE iif VD, ? �; �:•;�•; k.' .... _ i.1f' i' :17..;i' i�.it�i}:�:�!�.:i; I•ili�:i .; � �� :: - .::.1�'�„•.. r'+l...t3t:?�7t.� lt.`• .� lw.. i3:�.t�.�Yllt ' �L�t�".�.,� t�a:,rif�'i� #�1.. iz�:2.i� ,lt:fi-:;1i• �:,��;7.i7�•:i^ltt:i. 1#..i3i�.il!'tl t�.. � # _ . ^'. .. . 1 C • • RESOLUTION NO. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION TO THE SUNSHINE STATE GOVERNMENTAL FINANCING COMMISSION FOR THE PURPOSE OF NEGOTIATING A LOAN NOT TO EXCEED 10, 000, 000; PROCEEDS TO BE USED FOR THE RPOSE OF REDEVELOPMENT OF THE G MAN/OLYMPIA BUILDING WHEREAS, the\eaaz State Governmental Financing Coimnlsslon (the "Commission") is aody corporate and politic in the State of Florida that has been crsuant to that certain Interlocal Agreement dated as of November 11amended and supplemented (the "Interlocal Agreement") among variovernmental units in the State of Florida, including the City of h City of Tallahassee, the City of Vero Beach, the City of Corald a County of Palm Beach; and, WHEREAS, the City Commission on June 23, 1987 duly passed and adopted Resolution No. 87-726 authorizing the City to join the Interlocal Government Agreement loan program for the urpose of providing funds to finance the cost of qualifying projects `+►ithin the City; and, WHEREAS, the Commission has issued 1 $300,000,000 Revenue Bonds, Series 1986 and is seeking to make loans to v ous local governmental units in the State of Florida for qualifying projects nder the Interlocal Agreement; and, WHEREAS, the City Commission on July 23, 1987, d\by and adopted Resolution No. 87-732 accepting the proposal submitgler Landmark Associates, Inc, for the planning and design, instring and management including the renovation and restoration pia Building/Gusman Cultural Center asa Unified Developmenand authorizing 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 directing the M City Manager. and the Department of Off -Street Parking to present the negotiated contract to the City Commission as soon as practicable for consideration and approval by the City commission prior to the execution thereof; and, WHEREAS, the City Commission (the "City Commission") of the City of Miami, Florida (the "City") has found and determined that a need exists to — borrow funds prior to the next scheduled meeting of the City Commission to finance or receive reimbursement for the cost of Redevelopment of — Gusman/Olympia Building ("Project") and/or equipping of the Project and the financing expenses related thereto; and, WHEREAS, the City has determined that the cost of the Project and the financing expenses related thereto will not exceed $10, 000, 000; and, WHEREAS, the City has determined that in order to take advantage of market conditions as expeditiously as possible and receive the benefits of a pooled financing by the City, it is in the best interest of the City to finance the Project and pay financing expenses related thereto by applying to the Sunshine State Governmental Financing Commission, rather than by a public sale of securities by competitive bid, and to delegate to the City Manager or his designee the determination of the actual dollar amount of the Loan and certain particulars of the Loan Agreement, subject to the limitations contained in thia Resolution; and, WHEREAS, the City owns the Gusman Cultural Center/Olympia Building; and, WHEREAS, the City has determined the need to redevelop the Gunman Cultural Center/Olympia Building; and, WHEREAS, the City has determined that it could utilize 35,000 square feet for office and/or storage space and it intends to enter into a long term lease for the rental of approximately 35,000 square feet; and, WHEREAS, the Department of Off -Street Parking has determined that it could utilize 25,000 square feet for office and/or storage space and it Intends to enter into a long term lease for the rental of 25,000 square feet: NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The Manager is hereby authorized and directed to submit an application to the Sunshine State Governmental Financing Commission for the purpose of negotiating a loan not to exceed $10,000,000: proceeds to be used for the purpose of redevelopment of the Gusman Cultural Center/Olympia Building. PASSED AND ADOPTED this day of 1987. (SEAL) ATTEST: MATTY HIRAI, CITY CLERK PREPARED AND APPROVED BY: ROBERT F. CLARK CHIEF DEPUTY CITY ATTORNEY XAVIER SUAREZ MAYOR APPROVED AS TO FORM AND CORRECTNESS BY: LUCIA A. DOUGHERTY CITY ATTORNEY k ;.