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HomeMy WebLinkAboutM-86-0628t5, TO.,, Honorable Mayor and Members of DATE: the City Commission FROM: Roger M. t on "SUBJECT: Director,Departmenttreet Parking AA T_n July 11, 1986 DISCUSSION OF FLAGLER LANDMARK ASSOCIATES PROPOSAL FOR REDEVELOP- MENT OF THE OLYMPIA BUILDING AND GUSMAN CULTURAL CENTER In June, 1984 the City Commission approved a Request for Proposals for restoration of the Olympia Building and Gasman Cultural Center. One proposal was received from. Flagler Landmark Associates for restoration of Gunman Cultural Center and expansion of the Olympia Building to convert it to first class office space. The proposal also included an entertainment center with restaurants and a cabaret. A detailed analysis of the proposal from Flagler Landmark 13 attached as Exhibit A. The Off -Street Parking Board reviewed the proposal on May 169 1986 and determined that the financial return to the City/Department of Off -Street Parking must be no less than it had been in the past and that rental rates charged to the Department of Off -Street Parking and City tenants must be comparable to market rates in similar buildings. Flagler Landmark Associates reacted to this position in a positive manner which is documented in Exhibit B. The Off -Street Parking Board is scheduled to reach a position on the Flagler Landmark Associates proposal in their regular meeting of July IT, 1986. Based upon the unique status of the Olympia Building, which is owned by the City of Miami but operated by the Department of Off -Street Parking, the recommendation of the Off -Street Parking Board has been scheduled for discussion during the Committee of Whole portion of the July 24, 1986 City Commission meeting. The input from the City Commission will allow the Department of Off -Street Parking and City staff to work with Flagler Landmark Associates over the summer to make a final recommendation to the City Commission and the Off -Street Parking Board in September. Exhibits: 2 cc: Cesar Od io Al Ruder 4 EXH ' A �A TO: Honorable Chairman and Members of the Off -Street Parking Board DATE: July 11, 1986 FROM: Roger on SUBJECT: PRESENTATION FROM FLAGLER LANDMARK Director �_ . ASSOCIATES: OLYMPIA BUILDING Department o f�treet Parking REDEVELOPMENT PROPOSAL Background In September , 1975 an agreement was reached between the City of Miami, the Department of Off -Street Parking, and philanthropist Maurice Gusman in which Mr. Gusman donated the Olympia Building to the City of Miami which in turn established an operational relationship with the Department of Off -Street Parking. Since that time the Department has operated the Olympia Building/ Gusman Center for the Performing Arts as an enterprise fund (G & 0 Enterprise Fund). Between 1976 and 1981 utilization of the Center was reduced dramatically as a corollary to public perception regarding downtown security. The Olympia Building maintenance was less than desirable with the only improvement being Interior renovation for the City Attorney's Office. On the positive side sufficient earnings were achieved by the Olympia Building to cover the losses incurred by the operation of Gusman Center for the Performing Arts. The financial performance of the Gusman and Olympia Enterprise Fund during the five year period was as follows: G & 0 Enterprise OlympAa Building. Gusman Center Net Revenue FY 76/77 $56,207 $(29,422) $26,785 FY 77/78 679273 (32,501) 34,772 FY 78/79 84,603 (42,515) 42,088 FY 79/80 98,686 (43,296) 55,390 FY 80/81 929818 (90,242) 2,576 During FY 81/82 it became apparent that the Olympia Building would no longer be competitive with similar older buildings which were being renovated and with the abundance of new office space being completed. The cost of ! operation was also increasing due to insurance, utilities, maintenance and the Metromover Tax District which were expenses beyond the control of the Department. It was further clear that Gusman Center for the Performing Arts could no longer rely on its traditional passive role as a venue for private promoters since major acts could perform once at the newly opened James L. Knight Center with an audience which was 2.5 times the size of the audience potential for Gusman. 1 8F-~626 a3 i The financial implications of these developments as well as reduced City of Miami tenancy in the Olympia Building were as follows: G & 0 Enterprise Olympia_Building Gusman Center Net Revenue FY 81/82 $1040041 $(110,508) $ 2,576 FY 82/83 1360004 (1339237) (6,467) FY 83/84 1739142 (253,252) 29767 FY 84/85 188,821 (230p492) (800110) (41,671) Modified Budget FY 85/86 1509198 (2970493) (1479295) Budget FY 86/87 145,622 (1390471) 6,151 With these evolutionary developments in mind it was apparent that an aggressive program of restoring the Olympia Building and converting Gusman Center to a role of producing it's own events was necessary. In November, 1981, the Off —Street Parking Board adopted a recommended redevelopment program which included short term improvements for the Cultural Center, creation of "galleria" type retail facilities in the Olympia Building and production of events in Gusman Center (Exhibit 1). Subsequent to acceptance of the program by the Board, the following results have been achieved: o Technical and artistic improvements were made to Gusman Center for the Performing Arts with the assistance of $230,000 in Legislative Grants received in 1983 and 1985. A third grant in the amount of $200,000 has been approved by the Legislature during the current session. The City of Miami assisted with loans in the amount of $100,400 to replace the roof and complete safety related repairs. o Darrell Calvin was retained after serving as the Producing Director for the New Hampshire Performing Arts Center at the Palace Theatre, Manchester, New Hampshire, an Historic 'theatre, with an understanding that Gusman would present its own cultural series which would demonstrate the viability of Gusman to other promoters, presenters, and entrepeneurs to increase utilization. During the past four years the number of events has increased to 130 performing dates from 45 performing dates. The community i perception of the Gusman Center has been improved dramatically and Gusman has encouraged resident companies to utilize the Gusman Center as its home. The Center serves five community resident companies: Miami Dade Community College —Lunchtime Lively Arts Series, Miami Film Festival, Story Theatre, Miami City Ballet, and the Golddiggers. o A redevelopment program utilizing the City of Miami Charter mandated Unified Development Process was adopted by the Off —Street Parking Board in July, 1983 (Selection Committee and Certified Public Accountant were approved) and the City Commission approved the redevelopment process conceptually in June, 1984. Subsequent to that date, the firm of Borrelli and Associates was selected to prepare a feasibility study (Exhibit 2). The study recommended 2 96-s629 _�` ► two alternative plans which included redevelopment of the Olympia Building and Gusman or redevelopment of Gusman and the Olympia Building including expansion of the Olympia Building to include the National Shirt Shop property to the west. The Off -Street s;r.. Parking Board accepted the study in February, 1985 and recommended that the City Commission hold the required Unified Development 4- Process public hearing. The Public Hearing was held on July 18, -_ 1985 and the City Commission authorized distribution of a Request for Proposals. I- o The Request for Proposals was distributed to over 100 architectural/development/financial planning firms in July 1984 with one bid being received from Flagler Landmark Associates in November 18, 1985. A letter of interest was received from Earl Worsham Company which was later withdrawn. o The Selection Committee, chaired by Tom Spencer of Spencer Bernstein Seeman Klein Perlstein, met on three occasions to review the oral and written proposal from Flagler Landmark Associates as well as the independent analysis from Peat Marwick Mitchell (Exhibit 3). The Selection Committee report (Exhibit 4) recommended negotiations with Flagler Landmark Associates with certain concerns which basically were to improve the financial return to Gusman Cultural Center and to ensure that the Department of Off -Street Parking rental was close to market rate. FlaglerLandmark Associates Proposal The Flagler Landmark Associates proposal provides two alternatives. Option A envisions the restoration of the Olympia Building and Gusman Center for the Performing Arts with an estimated cost of $4, 614, 223• Option B includes Option A plus a ten -story expansion, of the Olympia Building utilizing the National Shirt Shops property at an estimated cost of $8,637,906. Option B would allow the creation of an entertainment center including restaurants and a cabaret which is not possible under Option A. Flagler Landmark Associates is a newly created corporation with the principles and their percentage equity as follows: Percentage Name of Equity James B. D. Beauchamp 40.0% Jaime E. Borrelli 13.3% Arthur J. Hill 20.0% Alberto R. Cardenas 13.3% Harry V. Sasson 13.3% The financial parameters of the project are documented in the Peat Marwick Mitchell Study. Of utmost significance was the agreement by the Department of Of Parking to rent 26,000 square feet at approximately $21.00 per square foot and invest $1.3 million in the project to receive a 33 percent share of the net cash flow which is estimated to be $1.24 million within the first ten years of the lease. 3 ss"sz15 �r Flagler Landmark Associates will make a verbal presentation regarding the At proposal during the May 160 1986 Off -Street Parking Board meeting. The original Flagler Landmark Associates Proposal included approximately 1000 pages. Flagler Landmark Associates presented a clarification of their proposal at the February 249 1986 Selection Committee meeting. 44" I General Observations To achieve the restoration of the Olympia Building and Gusman Center for the Performing Arts will require extremely skillful negotiations with Flagler Landmark Associates and support from the City of Miami. The following observations are offered for consideration by the Off -Street Parking Board as minimum requirements for your authorization to pursue the negotiations: o Flagler Landmark Associates must commit that it will be flexible in terms of either rent to be paid by the Department or equity to be received such that the net cost per square foot is defensible in this extremely competitive office market. o The City of Miami could determine that its interim downtown office facility will be the Olympia Building. A creative lease could be developed which would allow the 20,884 square feet of office space not needed by the Department to be rented by the City for an amount which is equal to a fair market rental rate or the budgeted annual deficit of Gusman Center for the Performing Arts whichever is less. This would ensure the financial viability of the Flagler Landmark w' Associates proposal and would present the City of Miami with sufficient potential savings to commit to rent the balance of the space not needed by the Department of Off -Street Parking. o Negotiations with the owner of the National Shirt Shop site must be completed prior to final lease negotiations with Flagler Landmark Associates to ensure that the property is available for Option B. o An understanding must be achieved with the arts community regarding the soon to be completed Performing Arts Center Study commissioned by the New World Center Foundation. The preliminary conclusion is that a $15 million investment in Gusman Center for the Performing Arts which would allow many technical improvements, including deepening the stage, would be sufficient to designate Gusman Center as the community symphony hall for the foreseeable future. To achieve the deepening of the stage would require the acquisition of the Urmey Hotel and contiguous properties. This acquisition could y~� be achieved with legislative funding support and a second Unified Development Request for Proposals process to either restore the Urmey Hotel or demolish the facility and build a parking garage with potential retail and air rights. Conclusion To achieve the Olympia Building/Gusman Center for the Performing Arts redevelopment program requires a great deal of creativity and flexibility on the part of all participants. The result has the potential for being quite outstanding as evidenced in the restoration of other historic theatres. 4 86-w62G I . I r.XHIBIT 1 4ove The decision to pursue this project requires far more than a simple financial analysis. The community$ City Commission, and Off —Street Parking Board are considering the survival of a building which is on the National Register of Historical Places. Policy makers are reviewing the potential for creating night life on Flagler Street with the resultant improvement to the retail community which is in serious trouble. Policy makers are reviewing the future of an artistic entity which requires nurturing and financial support. Finally we are seeking a method to solve an administrative office need of the Department which is nearing crisis proportion. The private sector has responded to these challenges through establishment of the Friends and Founders of Gusman which is rapidly growing in stature and fundraising ability. It is most important that a determination be reached regarding the future of the Olympia Building/Gusman Center for the Performing Arts and that the decision be an aggressive redevelopment program in partnership with the private sector. Exhibits*. 4 5 .. • z%HIBIT 1 TO: honorable Chairman and Members DATE: November 19, 1981 of the Board SUBJECT: Gutman Cultural Center/ FROM: Olympia Building Redevelop- ment Program Roger M. Carlt Director Deoartment offreet arkinq ow attached report has been reviewed and recommended by the Gutman Cultural Center Advisory Committee In their meeting of November 19. 198). AM, 1 ° • TO: 1 FROM: s ,f � _ Honorable Chairman and Members DATE: November 17, 1981 Gusman Cultural Center Advisory Committee SUBJECT: Gusman Cultural Center! Olympia Building Redevelop - Roger M. Car n ment Program Director Department tre Par ing U°- Recommendation „-. It is recommended that the Advisory Committee adopt a redevelopment program with the goals of establishing a solid financial base, increased utilization } of Gusman Cultural Center, and redevelopment of the Olympia Building to ^° modern functional standards while preserving its architectural tradition. kBackground The Gusman Cultural Center and Olympia Building was donated by Maurice Gusman `.' to the City of Miami in 1975. Simultaneously, an agreement was approved b y the City Commission in which the Off -Street Parking Board agreed to operate the facility as an enterprise fund. The Gusman Cultural Center Advisory Com- ,,;:; mittee was established to advise the Off -Street Parking Director and Board s<1 in the operation of the Cultural Center. While Mr. Gusman was extremely generous in y g providing private funds to renovate the Cultural Center prior to turning it over to the City, a substantial amount of work remains to be done both in the Cultural Center and the Olympia Building. Financially, the net operational proceeds of the Olympia Building have been . r used to subsidize the operating loss of Gusman Cultural Center. A four year analysis in Attachment "A" demonstrates that previous surpluses generated by the operation of the Olympia Building will no longer be sufficient to subsidize _ Gusman at the and of Fiscal Year 1981-82. This problem is caused partially by increasing operating costs for the Olympia Building particularly in the area of utilities and private security services. Numerous deferred maintenance items and the need for major. noderhization have become limiting factors in our ability to increase rents in order to generate greater revenues. The major factor, however, Is that marketing the Gusman Cultural Center in light of the image of Downtown after hours and the lack of parking in proximity to the Center has been extremely difficult. Therefore, revenues of the Cultural Center have been trending downward while operational costs have been increasing. —= There are a number of factors which are positive in this situation. These =— factors include: ' _ • 'the short term decline in retail sales experience during the Sumner as a result of the strengthing of the u. S. dollar seems to have abated. 86--*62 i s. i • the Downtown Hotel Association has expressed an interest in the {, production of a continuing show with a Miami "Memispheric" theme which would increase utilization of the Cultural Center and enhance 5:,• i its role in Downtown tourism. i The Tourist Development Council staff has expressed an interest in reconvnending that the tourist tax fund a feasibility study required ¢Y. as a prerequisite for financing required architeptural improvements. e Negative publicity in the worldwide press regarding the crime ?F problem in Miami has created a new consciousness on the part of the tourism industry. Gusman is a unique resource which is vastly under utilized and with creative redevelopment could be part of the solution. Analysis There are three segments to the redevelopment plan for the Center and the Olympia Building. The first is short term improvements to operational procedures for Gusman Cultural Center. These include: t, e Create a full time ticket office capable of being used by Flagler Street pedestrians. This office would sell Gusman tickets, as well as, tickets for other theaters on a commission basis. • Utilize Garage No. 4/5 to serve theatre patrons through allowing promoters to advertise parking included with the ticket price. The promoters would guarantee a minimum payment to the garage in exchange for parking privileges. • Establish a lower rate structure for non-profit and educational Institutions willing to accept less desirable dates. • Assume responsibility for the snack concession and obtain a liquor license in order to be comparable to the Dade County Auditorium and Miami Beach Theatre of the Performing Arts. • Copramote events where desirable. e Develop now and expanded promotional materials. The theatre could be advertised in trade journals in order to increase promoter awareness. a Initiate special events in selected areas of the theatre. e.g. fashion shows, art shows, and catered dinner theatre combination packages. Cooperate with the Downtown hotels and the Tourist Development Council (2 percent resort tax) in the production of a live stage show expressive of the "Hemispheric" destiny of Miami. This show would run weeknights and be geared predominantly to hotel guests seeking evening entertainment. The hotels would guarantee a sufficient number of tickets to ensure that the theatre met its operational costs. R�- . )t'' a Cooperate with the various convention bureaus to snake the facility available as an adjunct to the new James L. Knight/ University of Miami Civic Center. The second asajor segment of the program is upgrading the Olympia Building In order to increase earning capacity. Major improvements include: • Replace manual elevators with modern automated equipment. • Renovate all office tower public areas and office entrances. • Create a two story retail "Gallerla" on Hagler Street and SE Second Avenue. This shopping/restaurant complex would relate architecturally and functionally to Gusman to order to create a pedestrian oriented area where visitors are able to shop, eat, '^ and attend events to a unified space. The shopping area could F... be open at night since security is provided at Gusman Hall and the Olympia Building. The third major category is renovations necessary to protect and enhance the Gusman Center. These are not mandatory at this time, but would be necessary if utilization increases as a result of the redevelopment pro- gram. Examples of these activities include: • Carpet replacement in the lobby areas. • Stage flooring replacement. • Dressing room refurbishment. • Installation of handicapped restroom facilities • Various artistic improvements including lighting and sound system upgrades. x - The estimated cost for the entire program is in excess of $2.0 million. Clearly, a revenue bond or private sector participation will be necessary to accomplish the program over the next three years. The effort will require coordination with the City of Miami as the owner and with the existing tenants where leases extend through the next three to eight years. The following preliminary time table demonstrates the major activities necessary to accomplish the redevelopment program: • Authorization to proceed granted by the Gusman Cultural Center Advisory Committee and the Off -Street Parking Board . November 1981. i Presentations to the City of Miami. Downtown Development Authority, New World Center Action Committee. Downtown Hotel Association. and Tourist Development Council December 1981 •• and January 1982. -3- 6 W. la& s'x ,s F i,I I • Funding cOMlttments for the Miami "Hemispheric" show received from the Downtown Hotel Association and funding committments for the "Galleria" and other renovations feasibility.study received fro% the Tourist Development Council February 1982 • "Galleria" fMsibility study completed : July 1982 o Production if the "Hemispheric" show completed . . . August 1982 e Premiere hifyi "Hemispheric" show . . . September 1982 • Bond sale (if feasible) or private lease bidding for the Gal leria ... September 1982 e Constructidecomplete in the Olympia Building . . . September 1983 o RenovatiOnSANd upgrades in the Gusman Cultural Center . . 1984 and bep,,,d Conclusion The Gusman Cultural inter/Olympia Building facilities provide a unique opportunity for creme redevelopment. Through enhancing the earning power of the Olympiabdlding; the financial base of the Gusman Cultural Center will be estabAthed. With the* addition of a permanent "Hemispheric" show and agressive MWeeting, Gusman will fulfill its role as a tourism and cultural resourOL These concepts have been discussed on a preliminary • and tentative basisfkh various Downtown interests and their support has been verbally exprQW. Therefore, your approval and authorization to proceed to obtain g"s to develop the "Hemispheric" show and prepare a feasibility study iSecommended. Att. -4- . WIBIT 2 1 r<" Gusman Cultural Center Olympie Building Combined Net Revenues Gusman Cultural Center Olympia Building Combined Net Revenues Gutman Cultural Center Olympia Building * Excluding depreciation of $37,917 Gusman Cultural Center Olympia Building Combined Net Revenues #* Approved 1981/82 Budget excluding depreciation of $37,220 ATTACHMENT "A" FY 79 FY 79 TY 79 Revenue Expenses Net $ 86,567 $129,082 $(42,515) 261,652 177,04q 84.603 S34$.2t S3o6.t _, 42 088 FY 80 FY 80 FY 80 Revenue Expenses Net $126.876 $170,172 $(43,296) 285,071 . 195,364 89,707 411 = 1365,5536 4,� b.4t1 FY 81 FY 81* FY 81* Revenue Expenses Net $ $7.310 302•r0 $177.552 209,687 $(90,242) 92,818 $389,815 FY 82** FY 82** FY 82** Revenue Expenses Net $121.050 310,550 $197,813 227.8-87 $(76.763) 82.663 431 $425,700 ,S 5.900 H6-62fi OLYMPIA OFFICE BLDG. akrn REDEVELOPMENT BORRELLI AND ASSOCIATES' SHEPARD ASSOCIATES DE ZARRAGA- DONNELL-DUOUESNE ELLIS SNYDER ASSOCIATES architects planners engineers S6 -"626 I � ; 0 2 - IB��`lf=tLLLi S� ASOCCIA`y` ES ANCHI T ECTE PLANNE148 I*" (I* **^Va. sun wo asAMI OL00400A ssf.l ♦ALA M/ 666•06f! 641•N91 February 22, 198S - Mr. Roger M. Carlton Director, City of Miami Dept. of Off -Street Parking 290 NE. 3rd Street a9 Miami, Florida 33132 s RE: Olympia Office Building Redevelopment t.' Dear Mr. Carlton: Enclosed herewith are three copies of our preliminary cost forecast and preliminary market overview relevant the above referenced project. R As previously discussed and agreed, this report is based on conceptual design sketches prepared by our firm intended to allow approximate cost dollar values necessary to determine If the contemplated project scope is financially within realistic parameters. This report should not be construed to be of a definitive nature until further extensive analysis can be achieved based on more complete design studies and solutions. We trust this information will assist you in the decision process concerning the re-developraent of the Olympia Office Building and adjacent facilities, and anxiously await your comments and our decision on this matter. We remain available at your convenience to answer any questions concerning this report as well the continuing of our professional services for this most important project. Sincerely, Jame E. Aorrelii, A.I.A. JEB/mr t • . . • f a - tr�t C= I PREFACE When John Eberson designed a spectacular new Miami theatre back in 1925, he perhaps realised that besides being a picture palace, the building could incorporate other functions which -would work togeather with the theatre symbiotically. So in addition to the theatre# there were shops at the ground level, and an office building above. The success with which it incorporated these varied functions is perhaps the reason that it has survived. Other movie theatres which didn't have the ancillary functions of the Olympia Building, fell upon hard times after the advent of television, and most closed. Some were later'gutted and converted into commercial mini -malls. The special grandeur of the Olympia's interior may have given it a place in the hearts of Miamians, but as the theatre became unprofitable, the owners seriously considered demolishing it to build a bank or even a parking lot, while leaving the offices and most of the shops. For many years, rents from the offices and shops paid for the theatre. The Olympia Theatre will celebrate its 60th birthday on February 18, 1986. As it approaches age 60, it is appropriate to plan Improvements for its continued use, and to study how its use might be enhanced with additional functions. In an era when public subsidies to the arts are being reduced, the future prosperity of the theatre may depend on income from other functions which are part of the building. Income from the other functions would prevent an unsuccessful show or a dissapointing season from being a financial disaster. This income could potentially allow a reduction in ticket prices, or provide increased funding for theatre equipment and maintenance of the building. Ideally, the complex as a whole could generate a surplus of funds which could subsidise other City programs and operations. At this time, certain changes are required for the safety of the occupants. Other changes would increase comfort and convenience vJ r,3>m in the building, make it easier to maintain, improve its energy efficiency and allow for an increase in rents. Now functions such as restaurant and bar facilities, and a cabaret would help to maintain a critical mass of activity, and give the facility additional sources of revenue. Additional office space and improved retail areas would also help in this respect. 86-62& 1 s When considered as a part of a downtown poised on the verge of greatness, the future of the Olympia Building becomes even more important. The Metrorail and People Mover transit systems will soon provide much of Dade County easy access to downtown Miami. But unless there are special evening activities, the City will u.. continue to be deserted by the hundreds of thousands of office workers after dark. The Olympia Building - Gusman .Cultural Center, a new cabaret and fine restaurant, would help give office workers a reason to remain downtown, and could entice others to come into the City by offering them something unique. The concept of a downtown cultural district has worked in other major cities and Miami now seems to have nearly all the right ingredients for success. Recently the New World Center krt;. Foundation, a nonprofit organisation, joined with the Dade County Council of Arts and Sciences to push for a downtown arts complex. B forthcoming planning study requested by those groups is expected to recommend wether a single large Kennedy Center -like complex should be built or if facilities can be provided in separate locations. f The Olympia Building could become the core of a theatre and cultural district which would encompass the Knight Center, the Metro Cultural Center, Miami -Dade Community College, and a new ¢'? a �Bfront Park am hitheatre. If ,. y p properly organised, activities at N these public facilities would be a catalyst for the private sector to join in and create additional small theatres and places for nightime entertainment. The benefits to the downtown commercial economy would be great. With crowds of people on the " streets, shops might stay open later, and the area would seem safer. Such a rich urban environment might also be an incentive to create nearby housing for those who wish to regularly ,participate in an area with so such to offer. 40 �• PRELIMINARY COST FORECAST, FEB. 22, 1985 Introduction Costs identified in this preliminary forecast are based on sketches of a conceptual design solution, the work specifically mentioned herein, and other information gathered in -the field regarding the building's general condition. A complete maintenance study has not yet been conducted and the exact requirements for bringing the building up to code have not been determined. We have made assumptions based on our knowledge of the scope of the work at this time. This cost estimate should not be construed to be of a definitive nature nor is it intended to provide either an upper or lower limit. It is intended to be an approximate dollar sum necessary to determine if the proposed work is financially feasible. Other design solutions could cost either more or less. Tenant finishes except as noted are not included. Prices will be subject to unknown field conditions, special requirements such as phasing or uninterrupted service, and market conditions at the time of bidding. Prices may escalate from the date of this report. EXPLhNATION OF COST BREAKDOWNS General In the conceptual design which is now proposed, it is difficult to totally separate construction costs for different occupancies within the overall 9 "Olympia Buildin ", although this has been P 9 attempted to a limited extent. Various building systems and equipment are used by more than one function, and items such as stairways and circulation paths are shared. The requirements of one area of use sometimes requires modifications,, 'and therefore costs, in other areas of use. It is beyond the scope of this estimate to completely asses the cost impact which different areas have upon each other. The retail areas, office areas, restaurant, lounge* kitchen and cabaret are mutuallydependant, with numerous shared elements and systems. In the breakdown which follows, the "Existing Office Building i Shops" and "Now Building" are listed separately. The theoretical dividing line is taken to be at the west wall of the existing Olympia Building. F. Costs for elements and systems which are shared are generally pro -rated. The separation of construction costs for the retail areas from the rest of the building has not been attempted in this analysis. It was assumed that the remodeling of existing Olympia Building shops will be financed as part of the existing office building and that the new retail area on the National Shirt Shop site, will be financed as part of the new addition. In terms of construction costs, the Most easily separated area of use within the building complex is the theatre. !lost building. systems and elements of the theatre are independant of other areas. Although the area of the theatre overlaps the area of the existing office building and shops, and the new building, a 8s- 628% f ' PRELIMINARY COST FORECASO PES. 22, 1985 logical line of demarcation can be drawn. because of its large volume and complexity of levels, calculation of the floor area of the theatre for use as a basis in evaluating costs is not realistic. We believe that a number for the gross floor, area of the theatre would be meaningless. Rather than being based on a square foot coati most prices for work within the theatre are based on an estimate of known scope of the work. The demarcation line between the theatre and the retail areas at ground level is fairly clear. on the east side of the building, the exit lobby is part of the theatre. On the north side, the central entrance which is now part of the theatre, remains as art of the theatre, even though it may also be used for access {; to the office building and the retail areas. At the second floor, the demarcation between the new restaurant and the theatre is taken at the wall of the mezzanine lounge which is currently the entrance to the ladies room. The double high space of the theatre lobby remains part of the theatre, but costs for new openings in the north wall at the second level would be part of the restaurant. Except for modifications to the existing basement below the stage, costs for moving the dressing rooms from the second floor of the existing office building to the basement of the new building are assigned to the new building. Demolition costs for the existing dressing rooms and the connecting bridge have been assigned to the rennovation of the existing office building. Chilled water for air conditioning the new dressing rooms will be provided by the existing theatre system, but piping modifications and new equipment costs for those dressing rooms are assigned to the new building. The existing emergency generator and fuel tank in the basement of the theatre are to be removed. Costs for a new emergency power generator are assigned to the existing office building and the new building. Costs for modifications necessary to connect electrical service for the new building to the existing electrical room and transformer vault in the theatre basement are assigned to the new building. 41 Backstage areas on the north side at the second and third floors which would no longer be useful to the theatre would be captured by the the new building at the second and third floors. Costs for modifications of these areas, are assigned to the new building. Above the second level the theatre and existing building share a small section of a common interior wall and the fire stair on the north. side of the theatre from the third floor down. So costs are expected for these common elements. With the above exceptions and the Second Avenue stores, the theatre exterior is clearly a separate physical entity. Cost for its restoration and maintenance are' listed with other Guzman hall costs. 86- 628r PRELIMINARY COST VORECAST, PES. 221 1985 Gusman Hall - Explanation of Item Numbers #14 - Architectural Woodworks Misc. new casework at south dressing roams, new replacements for wood items damaged beyond repair, new poster frames, vanity tops at restrooms. 015 - Waterproofing: Waterproof basement walls. #16 -. Roofings New roof at east side of theatre, new roof at low areas adjacent to fly loft, patch and recoat existing main theatre roof, seamless applied liquid membrane at roof slabs between theatre a office building. 017 - Sealants: Sealant at fire escape supports, around all doors, windows a louvers. #18 - Metal Doors a Framess New fire doors to basement stair, fire doors to organ loft, new metal attic access doors, misc. replacement doors. #19 - Wood Doors: New restroom doors, closet doors, dressing room :[y doors, repair exterior french doors at balconies. t ; #20 - Entrances: New wood entrance doors and surrounds at east .;... entrance and north entrance. =. #21 - Metal Windows: Repair and/or replace 21 existing galv. steel windows, including wire glass a repainting. #22 - Wood Windows: Repair 18 existing wood windows, incl. reglating as required, repainted. #23 - hardwares Replace hardware for balcony french doors, misc. window hardware, hardware for new entrances, hardware for new wood a metal doors, replace damaged hardware on existing doors, new thresholds. #24 - Lath a Plasters Misc* stucco patching, rework plaster j"3'i ceiling around lighting coves, repair ceiling in restrooms. #25 - Decorative Plaster: Repair decorative plaster mouldings, grilles a ornament, restore missing ornament. #26 - Gypsum Wallboard a Partitions: Partitions in basement, bathrooms a lighting coves. #27 - Ceramic Tiles Restore ceramic the in vestibule, lobby a east entrance, new the for bathroom walls a floors. 028 - Carpetings Approx. 2909 sq. yds. of custom weave carpeting to match original design for theatre auditorium, interior stairs, tunnel a mezzanine lounge. 029 - Suspended Ceilings: Backstage and south dressing rooms, new toilet rooms. ._/ AAARRR"'333���"' .k 'W 1 PRELIMINARY COST FORECAST, FEB. 22, 1985 Gusman Ball - Explanation of Item Numbers #1 - Demolitions Demolish east entrance doors a ceramic wall tile, demolish east theatre marquis, demolish theatre director's office finishes i partitions, demolish men's restroom finishes, remove misc. finishes, furnishings, equipment i debris,. demolish toilet rm. at a.w- corner of building, remove spiral stair, cut new openings in foundation walls below stage, cut slab for sound board pit, remove north marquis, cut ceiling for light cove, remove theatre seats for storage as required, remove carpeting 6 misc. flooring, remove stair from stage to second level at north side. t #2 - Excavations Hand dig unexcavated earth in basement below >' stage for sound,board pit. #3 - Shorings Shore up slab during excavation of basement areas. #4 - Concrete Works New slabs, walls and structure in basement, .new sound pit, fill in spiral stair opening a misc. openings. #5 - Concrete Repair: Repair spalled concrete slabs in basement, attic a below monumental stair, repair balconies at projection booth level, all using hand troweled material. C. #6 - Brick Masonry Repair: Repair crack at joint between theatre office building, repair brick removed for inspection of structure a adjacent to terra Gotta repair. #7 - Terra Cotta Repair: Replace cracked terra cotter around projection booth, replace cracked mouldings, replace missing moulding at alley. #8 - Masonry Cleanings Hand scrub and power wash using mild detergent all brick work and terra eotta. #9 - Structural Steel# Steel supports to replace bearing walls at basement, reinforce roof trusses for support of new transverse catwalk for lighting cove. #18 - Metal Fabricationss New steel stair to basement, repair fire escape elements, railings for fire escapes, new metal catwalk with hangars and railings, new stair extension from fire escape to lighting catwalk. #12 - Ornamental Metals: Repair wrought iron balconies on east fascade, misc.* wrought iron gates to restrooms. #12 - Finish Carpentrys Misc. shelves, install new wood items. #13 - Wood Restoration a Treatments Rpoxy injection, new veneers, termite a fire resistive treatment for wood elements including wood copings at balcony stairs, catwalk in proscenium, wood grilles, wood mirror frames, misce wood furnishings, theatre organ a player piano. es- 626. ' PRELIMINARY COST fOREC , FEB. 22, 1985 Gutman Hall _ Explanation of Item Numbers #30 - Exterior Paintings Power wash � g paint stucco surfaces, white metal sandblast 6 epoxy paint fire escapes, paint existing metal louvers, i exterior doors. #31 - Interior Paintings Repaint auditorium ceilings, touch-up _w ornamental areas to match as required, clean all surfaces, 9,z ' repaint interiors doors a woodwork, misc. painting backstage, basement 6 dressing rooms, misc. painting of ceilings etc. t #32 - Louvers i Ventes Repair stage ventilator louvers, misc. .,, attic vents. � #33 Identifying Devises: Signage for room doors, cautionary s ignage . #34 - Toilet Bath Accessories: Toilet partitions, mirrors, towel & soap dispensers, handicap grab bars, restrooms i toilet rooms. #35 - Artificial Plants i Birds: Orange trees, flowers and birds for auditorium, as originally intended. #36 - Statuary: Replace missing fingers, hands arms and heads, ' marbelized paint treatment if required. .{.= #37 - Plumbing i Fire Protections Piping for new restrooms, plumbing fixtures, sprinklers behind proscenium arch, at gridiron, basement areas, public restroome, projection booth, and dressing rooms, halon for theatre organ. _a .a #38 - H.V.A.C. -Rework air conditioning system for new restroom, _ minor work in basement, temperature a humidity control for organ loft• )yam ;� 1`�._• #39 - Electrical •a Lightings Now lighting in basement areas i restrooms, rework control locations for house lights,, power to restrooms, connect to generator, power to lighting coves, new a3 ha step lights at balcony, exterior lighting upgrade. #40 - Lighting Fixture Repairs Clean a relamp ornamental lighting fixtures, repair cameo and cracked panes in stained glass fixtures. #41 - Marquis Restorations Reconstruct original marquis at north theatre entrance. 0 F! yt 'a PRELIMINARY COST FORECAST, FEB. 22, 1985 Existing Office Building Shops ` Explanation of Item Numbers u #1 - Demolitions Demolish storefronts & store interiors, dressing rooms at 2nd i 3rd floors, office interiors, aluminum windows, bridge to backstage, including flooring, patitions, doors, suspended ceilings, air conditioning systems 4 Buctwork, electrical equipment, plumbing 6 plumbing fixtures, cut new �N4r openings in slabs and walls, properly remove all items not salvagable from site. #2 - Excavations Excavate new mechanical room floor 6 new elevator pit. #3 - Concrete Works New mechanical room slabs and walls, elevator pit, misc. patching and triming of openings in slab, readjust slabs at new ground level corridors. #4 - Brick Masonrys New brick masonry around storefronts and entrances. #5 - Brick Masonry Repairs Repair crack between theatre and office building, repair misc. cracks, minor repointing and removal of extraneous metal attachments. #6 - Concrete Unit Masonrys Mechanical room enclosure, rear of F; C. stores at corridors, misc. partitions. #7 - Terra Cotta Repairs Repair/replace damaged terra Gotta ornament, reconstruct decorative surround for office building entrance. #8 - Stone Masonry: Granite plinths for storefronts, marble wainscoate for office building lobby. #9 - Masonry Cleanings Clean brick i terra Gotta with power washing and hand scrubbing with mild detergent. #10 - Structural Steels New edge beams at cuts thru existing slab, mechanical room mezzanine support structure. #11 - Metal Fabrications: Misc. lintels, shelf angles and bracing. #12 - Ornamental Metals: New wrought iron grille above office Y .Y building entrance, cast iron elevator surrounds at office building lobby, refinish mailbox i mail chute. gw x-x #13 - Wood trim around new office corridor doors, anise. shelving in closets, counter tops in restrooms, new windows from restaurant to theatre grand stair. #14 - Wood Restoration i Treatments Salvage corridor doors for reuse internally and repair. #15 - Waterproofing: Waterproof new mechanical room basement, elevator pits. 86-62Fi- t PRELIMINARY COST FORECAST, FEB. 22, 1985 Existing Office Building i Shops _ Explanation of Item Numbers #16 - Roofing: Complete new roofing for existing office tower ` including penthouses, flashing 4 equipment curbs. a _ #17 - Sealants: Sealant for perimeter of storefronts and entrance doors, perimeter of all windows, doors louvers. #18 - Metal Doors i Frames: New louvered doors to mechanical room a' at ground floor, fire doors to electrical rooms, mechanical rooms and stairways at office floors. #19 - Wood Doors: Office corridor doors, restroom doors. #20 - Special Doors% Sliding fire door at office building lobby, coiling grilles at public corridors at ground level. #21 - Storefronts i Entrances: Entrance doors to office building lobby, new storefronts at shops shop entrance doors, storefront at west wall of restaurant. #22 - Metal Windows: Repair existing metal windows at south - '' elevation and at interior stair, including new wire glass where required and painting. #23 -Wood Windows: Repair existing wood windows, replace aluminum windows with wood,.including painting. r #24 - Hardware: For all doors new windows. #25 - Lath Plaster: Ceilings of ground floor corridors. stucco - repairs i patches, flat ceiling at office building lobby, plaster exposed concrete masonry units at ground floor corridor. #26 - Decorative Plaster: Repair i reconstruct ornamental plaster at office building lobby, repair any damage to theatre vestibule entrance ceiling from installation of sprinklers. #27 - Gypsum wallboard, Partitions: Office corridors and restrooms, common walls in stores. #28 - Ceramic Tile: Stoops at shop entrances, office building lobby, new public corridor at ground level, restroom floors walls. #29 - Carpeting: Office floor public corridors. #30 - Suspended Ceilings: Office public corridors i restrooms. #31 - Exterior Paintings South fascade a penthouse, exterior of doors, louvers. #32 - Interior Painting: Ground level corridor, office building lobby, office floor public corridors, doors. 86--628. PRELIMINARY COST FORECAbTs Me 221 1985 lexisting Office Buildi Explanation of item Numbers _nS Shops #33 Security Shutters: For storefronts directly on street. #34 Louvers 4 Vents: Penthouse 6 ground floor mechanical, fresh air make up for stores. #35 Identifying Devices: Building directory, door plaques. #36 Toilet i Bath Accessories: Toilet partitions, mirrors, soap towel dispensers* handicap grab bars, for floors 2 10 and for each shop. #37 - Elevators: New cabs and controllers for 2 existing elevators, new cab doors & ornamental hoistway doors, update to all current code requirements including machine room. New 3 story hydraulic elevator. #38 - Plumbing & Fire Protection: New supply & drain piping throughout except rain water leaders, toilet room at each store, new restrooms at floors 2 - 10. Sprinkle building throughout. #39 - H-V.A.C-% Chilled water system throughout including stores, including main and flexible ducts, diffusers and returns, air handlers, v.a.v. boxes and controls,, smoke purge. Radient heat panels and beat strips. #40 - Electrical: New feeders, wiring, breakers, etc., distribution to coiling junction boxes* lighting in all public corridors and in restroomas emergency generator and lighting. New Building Explanation of Item Numbers #1 -Demolition: Comlete removal of existing 3 story wood masonry structure. #2 Soil Borings: To determine bearing capacity of soil. #3 Excavations 4000 cu. yards at $4 *a. #4 - Shoring Adjacent Structures: Sheet piling and backbracing sides of excavation. #5 - Dewaterings Removal of ground water and rainwater. #6 - utilities: Now storm sewer and sanitary sewer connection to Flagler Street. #7 - Foundations & Concrete Works Complete structural shells "PSI" system., . #8 - Brick Masonry: North fascade veneer. 86-62S PRELIMINARY COST FORECAaf, FEB. 22, 1985 New Building ` Explanation of Item Numbers #9 - Concrete Unit Masonrys South & west walls, backup to brick veneer, penthouse walls, misc. partitions & fire walls. . #10 - Terra Cott& Masonry: Mouldings & cornice on north-fascade. #11 - Stone Masonry: Granite base for storefronts, misc. clading. #12 - Structural Steel: Elevator hoist beam, misc. steel structure at captured theatre space. 413 - Metal Fabrications: Steel stairs, misc. lintels for brickwork. #14 - Ornamental Metals: Stair railings, railings at bridge between restaurant & lounge, misc. ornament. #15 - Finish Carpentry: Counters and shelving in dressing rooms, trim at office corridor doors, interior window trim. #16 - Architectural Woodwork: Misc. casework in dressing rooms. $17 - Waterproofing: Basement floor, walls and ceiling. #18 - Insulation: Thermal at exterior walls and roof, misc. sound insulation. #29 - Roofings Built-up for office building, including fashing & equipment curbs. #20 - Sealants: Perimeter of storefront, exterior doors, windows, louvers, expansion joint between new & existing building. #21 - Metal Doors & Frames: At basement and penthouse, exit from stairs at ground floor, mechanical room at ground floor. #22 - Wood Doors: Office corridor doors, dressing room doors. #23 - Special Doors: Coiling grille at gound level mall. #24 - Storefronts S Entrances: Ground floor retail space, lounge entrance, cabaret entrance. #25 - Metal Windows: Aluminum fixed & double bung for offices, lounge & cabaret. #26 - Hardware: For all doors. #27 - Curtain Wall: North fascade #28 - Lath & Plasters Plaster ceilings at shower rooms, stucco finishes. 86-62S tI PRELIMINARY COST FORECAST, FEB. 22, 1985 New Building _ Explanation of Item Nub #29 - Gypsum Wallboard, Partitionss Stair enclosures, dressing rooms, office corridors. . #30 - Ceramic Tiles Ground level "mall" area, floors & ceilings in dressing room toilet & shower rooms. #31 - Resilient Floorings At dressing rooms 6 service elevator. #32 - Carpeting: Office floor public corridors. #33 - Suspended Ceilings: Dressing rooms & office floor public corridors. #34 - Exterior Painting: Stucco surfaces at south & west fascades and penthouse, misc. at ground level. #35 - Interior Paintings Dressing rooms, stairway, office floor public corridors. #36 - Louvers & Vents: At penthouse. #37 - Identifying Devices: At dressing rooms, office corridor door plaques. #38 - Fire Extinguishers & Cabinets: Dressing rooms, kitchen, stair entrances, cabaret, penthouse. #39 - Toilet & Bath Accessoriess Partitions, mirrors, etc. at dressing room areas. #40 - Dumbwaiters Between kitchen & cabaret, stacked compartments. #41 - Service Elevators Standard size, traction with durable finishes, cab doors on 2 sides. #42 - Plumbing & Fire Protection: Roof drainage, dressing room piping, fixtures & ejection system. Stub outs to kitchen. Sprinklers throughout. Integral with existing office building system (pro -rated) #43 - S.V.A.C.: Chilled water throughout, including all egipment and distribution. Chilled water for dressing rooms supplied by theatre. Kitchen hood system, smoke purge, v.a.ve boxes and controls. Central chillers on roof, integral with existing office building system (pro -rated). f #44 - Electrical & Lightings Now service from theatre transformer vault, distribution to ceiling junction boxes. Lighting in dressing rooms, corridors, stair, ground level etc. 1 8s-sz8= ' p�,tM1NARY UiD9'r IORF�Sr 1"F,Es. 22, 1985 Cius m Hail collars itmn 4 ------ ...� ' ...�-•- 1 denolition 40000 loom - 2 excavation 3000 3 sharing 15000 4 oonffete work 5 concrete repair 5000 uf6060 6 brick mm*n Y repair 15000 y terra 00ttaa rneivir 70M X ; 8 masonry cleaning 5000 i. 9 structural steel 65000 10 metal. fabrications 50M 11 ornamental metals 30M 12 finish Carpentry treatment 15000 25000 14 architectural woodwork 2000 2OW 15 waterproofing 30000 16 roofing 8000 17 sealants 18 metal doors rr frames 40� 5000 19 wood doors 2.0 W 20 ernts'anoes 10000 21 metal windows 30M 22 wood wises am 23 hardware 40000 24 lath D Piaster 25000 } 25 decorative plaster 26 wallboard, partitions 4M gypsum 27 ceramic file 14000 4MM 28 carpeting 2OW 24 susPerx#ed ceilings 50000 30 exterior � MM 31 interior 6000 32 1wxvers 4 vents U" 33 identifYir�9 20008 34 toilet i bath aoasssories 7000 35 artificial plants i birds 5000 37 plu AM i fire pr otec." ► 39 electrical i Lighting Isom 40 lighting fixture repair loom 41 marquis r4storation tlrb Totalge 9800k� general conditions 10% cwaxt�ead 6 profit 10g 1078 M� . ContractorIa cantir►guncy 1185808W mtal 1304300 i • • t item � ExistingOffice 20wer i dollars .... 13W" 1 demolition %W 2 excavation 15000 3 concrete work 50M 5 beick fiasonrY repay' 5000 110000 6 concrete unit masonry 50000 7 terra ootta repair 7" a stone masonry 25000 9 vag=wy cleaning s .uctural steel 10000 40M 11 metal fabrications 50M 12 metal metals 3000 33 finish carpentry restoration a treatment WM 20M 14 wood 15 wnteYprO"f 20000 16 roofing 15000 17 sealants frame doors _ 15000 19 wood doors 10000 20 special doors doors 21 storefronts and entrance 45000. ?1" 22 metal windows 30000 24 bardware 14000 25 lath & piaster am 26 daoorative plaster 27 gypaun v allboard, p0irtitiona 20M 200M 28 igWc tale 10000 29 Crpeting 5000 30 suspanded, ceilings 150M 31 exterior painting 130M 32 interior painting 12000 s 34 louvers its 20M 35 identifYing devioss 36 toilet i bath acoessoras 35000 220M 37 elevators 38 P1 6 fire protection430M 28MW 39 b.v.a.c. 40 electr 28MM 6vb Zbtal 28440M 164" general 60 ertwona � i profit 29% �124 contingency 10$ ,Mta,'1 2454364 Mi item New Building dollars _ 2000a 1 demolition 2 sail borings 2i0t�i9i0 1600 3 eXMveticn adjacent structures 9000 Iwo � �� 2io00 6 utilities a concrete work 7 foundations 36 0000 9 tXrtcncre n'as°rurY 4000 lfb terra catta masonry 2l000 11 stare perry ` steel-30M 5E1t�0 12 strWtnral 13 natal fabrications lfd0k30 14 6JUMMtal Metals 15 finish �P�try woodwwck 5000 IM 1bb00 1ardsitectura1 17 vaterpV00fin9 18 insulation 90M 4d00 19 roofing 20 s 4 ts frame O 15000 ww ?211 � 23 spell doors 5000 low 24 entrances i stJor efrants 5000 5000 25 metal wcinclw ww 2267 �in wall 710000 28 lath & plaster 29 gyp"y,aliboard. prtitions 10" 5000 30 ceramic the ww 31 resilient flooringq4M 32 carPsting 60fd0 34 �pgs 4000 35 interior - 36 IDQvsr ip�tn9 37 identifying cabinets 1fs00 20M 4000 38 fire ext'aguishers & 10MM 145M 42 Pp a fare pca�teR"K'iion 5 43 hlec electrical a Ughtir'9 .........--- i motal 132MO 13UN conditions lot 00 �, profit 10� 1159720 caltrac contic►g�=Y 10� ..-------- Total 1756920 E c. i� smvs Off' G0m dollars ousman ball 1304380 Ocisting Office Tower i Shops 2454364 New Building 1756920 Total 5515664 itan # At. DW NCES collars 1 Restaurant finishes i furnishes 400000 2 Kitdien equipment 250" 3 Cabaret finishes 6 furnishings So" 4 Cabaret equipment 50000 5 Parking Authority Offices finishes, furnishings & equipment 25W" 6 Theatre Offices finishes, furnishings i equipment 3W" 7 Olympia Building Office finishes, furnishings i equipment 5000 Total 1035000 GROSS AREAS (Not including Theatre) Existing Office Building i Shops Basement 1st Floor 2nd Floor 3rd Floor 4th Floor 5th Floor 6th Floor 7th Floor Sth Floor 9th Floor 10th Floor Penthouses TOTAL. N.A. Commercial Restaurant Office Office Office Office Office Office Office Office Mechanical 5350 s.f. 4730 s.f. 5320 s.f. 5320 s.f. 5320 s.f. 5320 s.f. 5320 s.f. 5320 s.f. 5320 s.f. 5320 s.f. 1240 s.f. 53860 s.f. New Building Dressing Rm. Commercial Kit./Lounge Cabaret N.A. Office Office Office Office Office Office mechanical_ 3000 s . f . 3000,s.f. 3000 s.f. 3360 s.f. 3000 s.f. 3000 s.f. 3000 s.f. 3000 s.f. 3000 s.f. 3000 s.f. 750 s.f. 31110 s.f. s PANNELL KERB .. FORSTER *ebrusry 26. 198S Certified Public Accountants Mr. Jain* B. Borrelli, A.I.A Sorrelli and Associates 7000 S.V. 62nd Avenue Suite 520 viasi, tlorids 33143 1101 Wickell Avenue soft 000 Miami. FL-33131 Telephone (305) 358.1616 Telex W3055 Cable PANKERR MIAMI r_ a Dear Mr. Borrelli: Ve have reviewed your preliminary renderings of the Olympia Office Building Complex and have prepared tentative revenue and expense estimates for the Olympia, the proposed new adjoining tower and the proposed restaurant/cabaret. Our eatisates are based on general industry averages, current average rental a rates, and your estimates of available leasable areas. We have not performed t a lark*t feasibility study for the protect, nor should our estimates be construed as numbers that night actually be achieved. For purposes of our initial estimates, we have wade the following assumptions: The restored Olympia offices, the new tower, and the restaurant and cabaret would be first class apace. equivalant to other new apace in the downtown Miaai area. • The restaurant would be a bigh.quality operation with experienced, Professional sanagement. e Retail ter',anta would be those currently in the building, with leases aiailar to those already in existence. +� Offices to be occupied by the Theater Manager or the Off-street Parking Autbority, are considered as regular tenant apace in the building, sub3ect to the same rental rates as private tenants. e The overall protect, excluding Gussan Hall. will be a 3oint venture between the parking Authority and the owner of the National Shirt Shop ff building. l_ e The private investment will include not only the land under the new towere but also some additional equity contribution and a co-signiture on borrowed funds. 86--626 1 ''a parking Authority offices, would be located, as such as possible, in the mtw, tower rather than in the restored Cuaaan apace. a A conventional 10-year loin, with 20 percent equity, at a rate of one 46 point over the current 10.5 percent prise rate, will be used to finance the protect. Va t Y:: �q. t �i 7 j •i * Wail and office common area, maintenance and other chargea are asaused to be equivalent to operating expenaes. Thus base rentals -are asauaed to represent funds available for dabt service. • Our estimates of lease income and restaurant incoae are presented in the following schedules. we would be pleased to discuss these in sore detail with you and the Parking Authority. 2 j ncerely hs R. Crow Manager B6-629 J X, PRELIMINARY OFFICE SPACE REVENUE ESTINATIS RESTORED OLYMPIA VITH ADDITIONAL NEW SPACE Olyspid 270000 sq.it. 4 922/ft base rout S594,000 New tower 6 22 276o000 Total a 8690000 musausumm COMMON AREA, NAINTERANCE AND OTHER CHARGES FOR THE OFFICE SPACE 279000 it. 0 07 9 1696000 129500 it. 9 07 676500 Total 0 276,500 mmftssmm PRELIMINARY RETAIL SPACE RENTAL REVENUE EST. RESTORED OLYMPIA VITH ADDITIONAL NEW SPACE TEMAXTS SQ.FT. AVG. RATE ANNUAL RENT Olvapia 3450 039.75 0 137o000 Now Tower 1925 39.75 77,000 0 214*000 ssssssssssss CONNOR AREA, RAINTSMANCE An OTHER CHARGES FOR THE MAIL SPACE 24SO It. 8 67 8 24o1SO 1926 13,475 s 37.625 mmftnmssswmm 86-628- q L i &: ter= FLAGLER AVENUE AREA OFFICE RENTAL RATES building Size Rates A.I. Dupont 200.000 sq. it. 0 22 blacayse 132,000 14-16 Downtown Center 120,000 14-25 Ingraham 160,000 15-17 Peninsula 132,000 18 Blasi World Trade Ctrs 549,000 25-35 Metromall 2320000 12-35 33 880000 18-24 Weighted avg. using old -rate $22.99 OVERALL DOWNTOWN MARKET Class a Existing Space Class A New Space bi $28 Ei 034 Avg 24 Avg 30 Lo 18 Low 26 Sources: Gunter No" i Co./Pannell Kerr Forster Caldwell banker -/ r �o Notes to five-year Bash flew statement k' (1) Astute, 90% occupancy in 1986, 100% thereafter (2) Aasuse 15% utilisation in 19860 90% in 198y, and 100% thereafter (3) Based on a 04,205,000 (80% of bard costs) loan at 11.6%-for 10 years, (4) Depreciation is straight line for 16 years, on building, 6 years on furnitum fixtures* and equipment t z (5) 8ssus* 0100,000 preopeniaq for reatsurant,.smortised over 30 sonths (6) Assume 4x of food and beverage sales for a restaurant reserve for =' replacement of furniture* fixtures and equipment _tx �ayey� ,ti v ? r t Y + 86-628 -r ' i d I Imp I R JI IIyIIjI , :r Yw"�y� . r i i riot TEAR cm tt oY roR TRt ot.TRpt& Dyne Nf WING M TOYER. Ale C1TT ERTERTA wnr cn, Ull C1IRRERT COLLARS) 19Ai (10000) 1987 fa000f 9aa (l000) i�d! 1990 ineeme beta* leteraet, de/reeisttaa. (l000f (SIMO) aowtlsaUM and locang tins Olympia office (if Olympia retail 535 137 S" SQL 594 Now Towr Office al137 137 S" am Town retail 24a 27S 137 i37 EutKtaamwmt Canker (b 77 77 77 275 27S 141 170 i" ift 77 Total income WWWO interest. AmpreMattan `-" ----- tan amor'ttsatieN and Income tames 1.130 1,253 1.271 1.271 1.271 Depreciation 442 410 374 333 •NortismtteN of preepeN'my 2Ri 286 286 286 286 empemme (s) 40 40 ~� 20 . =ace.. selen tacsao tlacea "---- _ add) Lei -� ass Gil 652 Depreclause ANW2ai ilatlae at PlropMiN 2a6 2d6 286 2d6 Deduct: 40 40 ZO for "Olaceaemt of faraituro, . _ fianderes peipmmt (6) f� Debt aseetlsatioe 41 SO ss ISS Caab Liar from operations 238 ----- 267 -- — - 336 ..�_. 376 before ieeome tames � � 3" fte eempwTie! Notes 0 tl I i�Y��'�I iVi1����II�Y�����ll�ll�di i III i ill �i 1. 1 •r, it 1 1 1 r 1 • r � k. l 1 • a I 1 pbf.IMRART NO AND W MCt REVEM RST1 MC$ CITY ERTERTAINNOT CRATERIOL"PIA BVILDINC 00t6RT a Or SEATS ATERA6E CE •astssrant 120 tW 9.00 lD) 19.00 Cabaret 130' to 9.00 (0) 29.00" TV Roos 40 W 9.00 to) 19.00 s s0 Tetal rood and movesRuwesae *haled" bewrap sales Jres all Outlets so Includes 610.00 for entertainment read sad la ersys Revenues MRADR a ARROAL SALES DAILY COVEW" AxNVM, COVERS PER OWMET JA0 tS deya) 461i00 234,000 60 (7 days) 21,840 327.600 s0 49 days$ 19.600 78.000 90 (4 days) 18,720 468,000 30 (2 days) 3,120 15,600 3S 43 days) 6,460 81.9oo 356.300 4 1,561,400 EntelLaisaMt Revenues total seventy Costs et reed call severe" Sales 434% of tab rovesam) Payreil and Direct Operatial Expenses 446% of tab rep.) Eatertaiament Costs t9Sx of ent. revenues) sent amd Other Coe -patios Costs 47% of !ab revenue) =scene We" dopreciatios, @aartisatiss. isterest. and 1soase taxes 11,374,200 1679200 1,561,400 4467,0003% 4632,000), t176,0003� (96,000 • lea,400 C7 f is Z",Aro, WKteU s tLJ0&S1Z t; ►�t�x; Er,r�r.:EFS 131 Mo M 51M 2M CM& GAR B, Fib 33134 46M14465B5E 144&7214 February 26, 1985 Borrelli and Associates, Architects & Planners 7000 S. W. 67th Ave. So. Miami, Florida 33143 Re: Olympia Building and Gusman Hall Development Project Comm. No. 8503 Gentlemen: We have conducted two general structural inspections of the existing Olympia Building and Gusman Hall. No existing structural drawings are available. From the architectural drawings it is noted, that the basic structure of the building is a structural steel frame with concrete slabs, with clay the infills. The portion of the structure that was exposed appears to be in good condition. A crack is apparent on the east elevation at the joint between the office building and the theatre. It appears that necessary repairs will be of a minor nature and that we will be able to effect them within the program budget constrains. Very truly yours, de Zarraga, Donnell 8 DuQuesne Gasto de Zarraga, E. Manag ng Partner GDZ/ed. 86-628 'Mums" X-j o - 4A S 'I N19707 as aw 1'M+ vie* tir AN ' •�` �� sue'. #��ll :'ti- '-- MITEN a FIJI o O-A AJ ow 4,J ji ILI- ­IF I ly— 86..(;Ze -'"C . '# a' u .. jr ti —Li �' � ` �;'r �` .l`��, t tj.�jj.V�''.M�'+.'���t . '_✓,�:;�y!..��_ ,Uy„ ' .r � i��C�i� } . y �r . aj��k �'i4tN'I et �• 2�•� � l�� ...t.l}+�:5' r cytrr �` �j{j'..,/��t��l'=(s'�'f`" \ i • :�`•,, f +��I `-. �� t .`�'J • ice."' ._t. t �*^� iF�7G�—SC� w•,i,,�+• ` ,'.'-��.vt� _ram �� � , - y;�;, . j,�,�i� •� . � } ^ ' ,fir„"' �`�,�� y'ya x w,.� �,{y j '•�Cp #^ "i".c. a ! ,may, tl y3• SA .i'� ,�t+c4'w� ..�r: C �� - +t�� r •„ � r �_ �y.ri, 'i �,'!�.: r^� ' .3't'�s+,Yr�r T �-'r �'jr=� Xy ' S +f Ri' } •i act ':kt '`i i.&f i . i 4" J S a 4 i�.. it � t *� a�!kT„�1 !• �Z i T7'x'.s! _ 1 '4`j s± i r{ j tts Ay j ' y ! e t `�,,..,�►...-t#•y�,t�x ,.. � l� { � ��i'�� 1 t'rr{ }� ��i�l+��r �,�I�f.�' J ��.. -'ALL4 r'-"L ' 1 i•-? 1 I i r � n,,��ff,,,, � 1I(1 1 �:..ri,.rfl�• r �1 •! - ter - _ �q/'��r�•j'{`�•+; � .�. - +�.-�,,,.- - �i Fi..w.�e•�« �J ...................... th N 0 AM r LA • `.�.. � S y ,i 1 .t, , n i ,..r.....��e.,e,.�.,p t4�r ��•,.Lti _ � � i i�, 5: - �, w ! a ....' I .!{,��✓: e a t +� � ?I ; �-'t"� T .li, •? +� � �� i i,i. ...... s. �e j--_ �r'� .•• .,':... � �:. :1,.: Ia0 .t' • ! . i � is t... _'1.'�er �'�'•b' lei{ Y �� j: �,7�, • ( :,l` �.1� - .' � �` t� + dr t!!. i I `T ' it e *M 1 : • m 16 ............ L Fez :1 i I vf��j , • 414,., i I l!f 1�rl 1 (7f:�rl,r x I A JEJ m O130Cal MIME Go:. ;�:�--_, r �r� ono) olal i I =_ ►�-�� ,, �. =i5m o'ol olo I I r , `olo�al 13 Ej = 1! t 1 0. 1. Arr 0 z �. . � »«« , - � � \ : � \\ SG®G2� _ . ��� _.\.... ....�.�... 86-62fS U•rnfted States Depzrtm lot of the Interior - nai Park Service for tips usi only ' `, wCo L! Q.ri�C�.f C��C�I�f�ii t`�!�`►f Ot't C'� CAS re` eiva:d f In1.IGi:�tit3r'�,,--yCv�ii9in nUon Voisi1`i date entered See instructions in Now to Complete National Register forms Type all entries--comptete sppticable sections Mama blstorie Olympia Theater and Office Building �P • ' and or common Maurice Cusman Cultural Center 2. Location street it number ' 178 East Flaqer Street N/A— not for publication city. town Miami tl/A_ vicinity of state Florida code 12 county Dade code 025 3a Classification ' Category Ownership Status Present Use district x public x x occupied , agriculture .._ museum 51 building(s) — private unoccupied L- commercial _ park structure ` both work in progress _.._ educational ._._ private residence site Public Acquisition Accessible x— entertainment _, religious object in process C x yes: restricted _ government -.._ scientific being considered — yes: unrestricted — industrial -,_- transportation N/A _ no _ military _ other: 4. owner of Property r tome City of Miami street t number 3500 Pan American Drive city. town Miami N/,- vlclnity of state Florida 5. Location of La- gal Description courthouse. registry of deeds. etc. _„pag ^ct►�ty eouLtbQys_ street A number _ 73 lest FWAgr StLgpg city. town Miami state Florida - - _... 76•ncG��ac����1'a� c�� F'i:�.'aK7:7E,j' sS.au' o- ys Oade County Historic survey has this p►oparty been determined eligibtet _ yos ..a.. no ut�Cit:.yr. of :Miami Heritage Consermation 1978 rdate 19infcdoral state >< - county . x- Iota+ ::etrd-Dide Couzmunity and Es.-u+uoxie Mvolgw-ant depositoryforsurvey records City of Mianri Planning Rgpa[t=rpt__ _ clty`t0" yia01 state Flo ridm %hP one Check one tnt .,, deteriorated — unaltered _X. original site ...t. good `, ruins _.x_ altered — moved date ------ unexposed w" crib& the present and original (it known) physical appearance The Olympia Theater and Office Building is a ten story commercial building located A. In the heart of downtown Miami. Of ;steel frame construction, the building is faced with brick and is embellished with a variety of terra cotta and wrought iron detailing charac- teristic of the Mediterranean Revival style. The theater itself is contained in an elaborai four story wing which extends to the south of the building. Designed in the atmospheric mode, the theater creates the illustion of an amphitheater set in the courtyard of a Spanis) villa. Overhead, the dark blue ceiling duplicates the evening sky with twinkling stars and rolling clouds. Both the exterior of the building and the interior theater spaces reamin essentially intact, and alterations during the Olympia's 58 year history have not Compromised the building's integrity. Sitting on the southwest corner of one of downtown Miami's busiest intersections, the Olympia Theater and Office Building occupies a prominent location. The building is a rectangular structure with nine bays across the north (front) facade and five bays across the east facade. The theater wing is also rectangular in plan and features seven bays across the east facade. The building is faced with pressed brick in running or stretcher bond and is topped with a flat roof with parapet. The theater wing also features a parapet wall, behind which is a gable roof. The north (front) facade is symmetrical in composition and is vertically separated into three main division containing three bays each. Original windows are wooden double bung sash with one -over -one lights; however, approximately one-third have been replaced with fixed sheet glass. Large, molded terra cotta beltcourses divide both the first and second stories and the ninth and tenth stories, while a smaller beltcourse separates the second and third stories. Decorative terra cotta detailing on the tenth story supplies iC.office building's major ornamentation. Elaborate terra cotta window heads are enriched with shaped pediments and feature a shield -shaped cartouche in the center. Brick pilasters topped with terra cotta urns separate windows on the and bays and also mark each corner. A small terra cotta beltcourse forms the capitals. The building's entablature, with its decorated arbesque frieze, is broken in the center three bays by a recessed curvilinear gable. Two twisted columns separate the center windows and extned to the top of the gable Vhere they are topped by urns. Large brick pilasters, each topped by two urns, flank the center bays. Located within the galbe and is one large shield-shapped cartouche, with a caller one over each window. i" The east facade of the office building is virtually identical to the north facade in its detailing. Here, however, the bays are evenly spaced, and the entablature is — s unbroken. An additional design element on this facade is the presence of a decorated window in the center bay of the second story. This window is embellished with terra cotta surrounds containing pilasters, scrolls, and an enriched cornice window head. It is t fronted with an ornamental iron grille. A similar facade treatment extneds only as far as '- the first bay on the south facade. The rest of the south facade and the west facade are finished in stucco and are void o: decoration. In contrast to the office building, the theater wing if highly ornamental and features a sys-metrical cc. -position with slightly projecting and bays. The center five bays on the second story contain large, shaped arched windows. Those winds s feature pulti-light koodor easomont sash with transoms :And ornamental iron balconets. Similas winJo.rs are located (See Continuatio:. Sheet) L 8s- i2h. Vntted btates WUP"O al park Service Ucrt`lC3cy!t±Ct'l�G�ii�f � �ls�r�rlC �����5 received t. date entered Continuation sheet Two Item number 7 page 2 The auditorium itself was designed to create the illusion of an amphitheater set in a Spanish garden and enclosed on three sides by the walls of an imposing villa. The ceili painted dark blue, duplicates the Florida sky with rolling clouds and twinkling lights to suggest stars. The theater originally seated approximately 2110 lieople. The proscenium arch is highly decorated with ornamental plaster and is topped with a bracketed gable roof supported by engaged Corinthian columns. The roof is covered with plaster tiles and also features a balustrade topped by urns. Located in the center of the balustrade is a round arched niche containing a plaster statue. The north wall of the auditorium is comprised of three graduated arches surmounted by an arcade which is su;i•-ort by twisted columns with a balustrade above. This side wall also features a tiled gable roof and an arcaded tower. The south wall of the auditorium is more elaborate and fe..ture a shaped gable with towers on either side. The lower level contains a round arched openin flanked by two smaller arches. Above is a large shaped arch which screens the organ. A balcony projects from the base of the arch, and grilled openings are located on either side. The balance of the south elevation reflects the opposite wall. Other decorative features throughout the auditorium include a series of decorative niches with plaster statues under the balcony and a wooden pergola above. The auditorium was renovated in 1972, and, at this time, all new seating was installe and the stage was reconstructed. The basic form of the auditorium, however, was not al:zt and the ornmental plaster detailing remains undisturbed. In contrast to the theater, the interior of the office building, including the lobby, has been completely modernized and does not retain its original architectural features. C -„ ••:ad Areas of Significancy --Check and justify below ,.. eaistarie ..._� archrology•prlo�Noric — tommunity planning ._._ landscape architecture..� religion ..r 000- 1492 ateheotogy•his._.ic ___. conservation `. law— ._,,_ science 1Sgli-1S911 agriculture — economics — flit its .,,_._ sculpture -- 1600-1690 architecture — education _ military _ social' I 1700-1799 C te0o-1899 art _t:_ commerce engineering .._. exploration settlement _._ music ____ philosophy humanitarian _.Z_ theater x 1900- _ communications — industry — politics government _ Uanspori: lion invention other (spvcily) specific dates 192S Builder�Architect George A. Fuller Co./Jahn Eberson ``, I Statotnent of Significance (in one paragraph) The Olympia Theater and Office Building is significant as an outstanding example of atmospheric theater design and is noted for the quality of its details, materials, and craftsmanship. Designed by John Eberson, one of America's foremost theater l tip architects, the Olympia is regularly cited as one of the finer examples of his works. The Olympia is Miami's largest and most outstanding theater, and, together with the Tampa Theater in Tampa, is said to be one of only two atmospheric theaters which y survive in Florida* The Olympia Theater and Office building is also significant as a unique example of the application of Mediterranean Revival style detailing to a ten story commercial building and, as such, is a landmark on the Miami skyline. Construction on the Olympia Theater and Office Building began in May 1925 during the height of Miami's boom period, and the grand opening took place on February 16, 1926. Built for Paramont Enterprises, Inc. at a cost of approximately $1,500,000, the Olympia Theater replaced the Airdome, an open-air theater which had occupied the same site.3 Paramont sought to build one of the most elaborate theaters in the South and, accordingly, selected as its architect John Eberson, who had designed his first atmospheric theater, the Majestic Theater in Houston, just two years before. In his almost startling departure from the accepted style in theater decoration, Eberson created in Miami one of the region's most beautiful and elaborately equipped theaters. Unlike the Majestic, the Olympia was designed with a r conditioning 3 and is said to have been the first air conditioned theater in the South. John Eberson originated the concept of the atmospheric theater in 1923. His intention was to create for the audience the illusion of sitting in `a magnificent amphitheater under a glorious moonlit sky ... an Italian garden, a Persian court, a Spanish patio, or a mystic Egyptian temple -yard...where friendly stars twinkled and wisps of clouds drifted.'S In the Olympia, patrons were treated to a large Spanish garden which was closed in on three sides by the walls of an imposing _ castle or villa. A duplication of the Florida sky appeared overhead. { Although it is a one -of -a -kind theater in Miami, the Olympia bears a striking •resemblance to the Tampa Theater, which was also designed by Eberson a short time '. later. Of the two, the Olympia is much larger in size, but both theaters exhibit many of the same interior themes and details. The Olympia, hvwaver, is much more elaborate of the exterior, due in part to its prominent corner location. The Olympia Theater and Office Building is an outstanding and unique exw ple of co:xaarcial architecture in downtown Miami. Daspite the :opularity of I diterrrnean Revival architecture in South Florida, the style was not gcr.trally utilized on tall buildings. The Olympia Theater, ho:revor, mskes wide use of t:_dit,:rrsr.can el4nints, particularly in its elaborate window treatzents and application of terra cotra and wrought iron detailing. Also unusual is the building's %sac of brick, an unc4::,mon building r4torial in the :•:iami area. The Olympia Tht:ater and Offica Building is generally recognized as a lanJr.zrk In Miami, and the theater continues to be utilized for parfortaznces. The building has remained relatively unaltered, both on the exterior :and in the theater spaces, during its history. The City of Miami, which currently owns the pro�rty will soon seek a devalo�.ee to rehsbilitato the office building , ?, and it is hoped tt>;st the selected developer will be ahle to utilize the 2S parcen Tnvestmant Tax Credit (Soo Continuation Shoot) 411111 86-62& t • Unitod C.tctes Departm�r of the interior tional eark Service �\i uT:ICnc�.I ra�C lStor of-� � 1.�',) tCyL'I rip tc�t��r� �•r�c�Z�-- Cvt� anG cc:1 Vona Far PIPS us3 only rectived idzle enl:red Continuation sheet Three Item number 8 Page 1 as a long-term lessee. It is anticipated that any revenue generated from the lease of the office building will be applied toward the future renovation of the theater. FOOTNOTES ` 1Den Hall, The Best Remaining Seats, 1961, p. 102; and Dennis Sharp, The Picture Palace, 1969, p. 76. 2"Tampa Treater and Office Building," National Register of Historic Places, National Park Service, U.S. Department of the Interior, 1978. 3"Theater to Be Opened," The Miami Herald, February 14, 1926. 4"Twenty-five-Year Old Theater Can Claim Firsts," The Miami Herald, February 24, 1951 SHall, p. 96. �f C MW :i (See Continuatiun Sheet) 100 Acreage of nominated property i.pCs than i Ousdrangle name Miami Ouadrangle scale 1: 24, 000 ._._ UT M References "Ll s 121e151o17loto) e W Zone fasting Northing Zone fasting Northing c L.,t....l L I t l t l t l D Lij 1.11_1_�_�J I t l t I t t l G L1J I t 1 t t l i r 1_�„y,LJ M LLJ 1 1 r Vorbaf boundary description and justilication Lots 1 and 2, and the southerly 55 fret of Lot 3, and the northerly 45 feet of Lots 16, 19 and 20, less the westerly 2 inches of the northerly 65 feet of Lot 2, of Block 121, of the PISCASTNeas at Miami North, as recorded in Plat Book 8 at age 41, of the Public Records of DadT in FlInrida_1hiS_prpperry ip dtae All ei�ai an .etnrie, raen►lreAr A-zL=igtai L'It nra er an ict: Atti in and counties for properi+es ovAipping state or county boundaries state N/A code N/A county N/A code N/A state N/A code N/A county N/A code N/A 11. t=oc�� C�j-enared Gy namelhl* Sarah Eaton/Michael F. 2imny, Historic Sites Specialist Organization Division of Archives, History t Rec. Mgmt. date January 26, 1984 - street fi number The Capitol telephone (904) 487-2333 ctty or town Tallahassee stale Florida -' - 12. State C aistorie Preservation officer Certification 3M evaluated significance of this property within the state Is: .v s national . state local As the designated State Historic Preservation Officer for the National Historic Preservation Act of 1966 (Public Law 89- 665).1 hereby nominate this propony for inclusion in the National Register and cattily that it has been evaluated s� according to the criteria and procedures set forth by the N31ional Park Sonrice. State Historic Preservation Officer signature 6< ../ -__ tttl• rcorge N. Percy. State Historic Prasorvation off 1cor '/+te �� �' -• •- , �� � `� For SIPS usa only • 1 hereby certify that this pro?arty is Included to the Natlanal Register - _ dAte Koopat of tlto Hatienat Register -~ Attests dale Cltiol of Registrallon M AXV," WMELLGCuOAS% CrAUMG ENG.IE% February 26, 1985 Borrelli and Associates, Architects b Planners 7000 S. W. 67th Ave. So. Miami, Florida 33143 Re: Olympia Building and Gusman Hall Development Project Comm. No. 8503 Gentlemen: We have conducted two general structural inspections of the existing Olympia Building and Gusman Hall. No existing structural drawings are available. From C the architectural drawings it is noted, that the basic structure of the building is a structural steel frame with concrete slabs, with clay the infills. The portion of the structure that was exposed appears to be in good condition. A crack is apparent on the east elevation at the joint between the office building and the theatre. It appears that necessary repairs will be of a minor nature and that we will be able to effect them within the program budget constrains. Very truly yours, de Zarraga. Donnell 6 DuQuesne Gasto de Zarraga, E. Manag ng Partner GDZ/ed. w 131 WZAA RM ao3 CARAT GA3,8 FLUCR Mi3 4 4458MI446.5=1"7214 es-s2� , PEAT MAMM►ICK Mr. Roger M. Carlton ssecutive Director Department of Off -Street Parking 190 Northeast Third $treat Miami. Florida 33132 Dear Mr. Carlton: EXHIBIT 3 Pont, MatwW Mitd*v t Co. Certified Public Aocouruanu 800 Brickel Avenue Miami. Florida 33131 (30S) 358-2300 March ,10, 1986 At Tour request, Peat, Marwick, Mitchell 6 Co. has reviewed the revised financial projections provided by Flagler Landmark Associates (n A) associated with the Unified Development Proposal for the Olympia Building/Gunman Cultural Center. We have also reviewed the other material which was provided by Flagler Landmark Associates to the Selection Committee on February 24, 1986. This letter consists of our comments and conclusions relating the financial viability. fiscal return, and economic feasibility of the proposed project, and should be read in conjunction with our January 28, 1986 report. FLAGLI t LARN1M ASSOCIATU RKTIM FROJUI OVx1 SHIP STROCTURK 0 As described by the Developer at the Selection Committee Meetiag, FLA has suggested an alternative method for sharing the cash flows from the project. The alternatives were# tax exempt financing at 9%1 in this scenario DOSP would receive two-thirds of the cash flow from the project. Y. - financing at IM in this scenario DOSP would receive one-third ,.g of the cash flow from the project. Following are our comments and conclusions 1. PIJ1's rationale for the distribution percentages of one-third i and two-thirds has no logical basiai the sharing ratios are - probably open for discussion and negotiation. 2. The FLA projections result in DOSP's effective rent per square foot. The projections howeverg do not include all of the elements of cost and benefit that were included in our January 28, 1986 i report. We have revised exhibit 9 from that report for the 9% and 112 financing scenarios (see attachments). 86-62H, r 2 Mr. Boger M. Carlton !larch 10, 1986 Page two Based on the attached exhibits, DOSP's effective net rent per square foot for year 1 under each scenerio is: Financing 9% 11% Plan A $17.11 $20.59 Plan B $24.01 $30.12 The square foot rents under the 11% financing option are not significantly different from FLA's original proposal. The 9% financing option provides significantly lower rents than in FLA's original proposal. 3. Our analysis includes the offset of income DOSP would receive if it leased its existing office space. If this element of the analysis were omitted, the square foot rents would be approximately $3.50 higher in year 1. C'lBEt CONNEMM AND CONCLOSIONS Our January 28, 1986 report identified several areas which needed to be _ clarified during discussions with FLA. The Developer responded to those areas In a letter dated February 20, 1986, however some of those responses require further clarification: 1. FLA indicated that "the initial capitalisation of Flagler Landmark Associates is intended to be utilised as equity in the project." However, the FLA financial projections do not reflect the utilisation of the equity capital. 2. In response to our question relative to the rationale for the Plan B rent rates and occupancy levels, the FLA letter states that "rental rates were determined as a function of costs, and not as a function of market rates which are currently depressed." FLU also submitted a letter from the Doran Jason Property Management Company (their proposed leasing agent) which indicates "no problem in renting space in the $25.00 range" in the annex building. C Mr. Roger M. Carlton March 10, 1986 Page three Neither FLA nor Doran Jason have addressed the reasonableness of the 90% occupancy levels in the first few years of operations. We believe that the combination of the relatively high rental rates and high occupancy levels are critical assumptions in V�: the financial projections, and that the supporting rationale for these assumptions is deficient. If the project is not able to meet these projections the cash flow return to the Department of Off -Street Parking could be materially less than projected. 3. In response to our questions "If the operation of the building creates operating deficits, how will Flagler Landmark Associates fund them!, FLA indicated that "we will appropriately fund them through financing and/or equity contributions." FLA's existing capitalization is $50,000, which does not provide such capability for funding operating deficits. 4. FLA submitted a letter from a financial institution which was designed to meet the request for proposal requirement for "letters from financial institutions documenting the proposer's ability to finance the development." Paragraph 8 of the letter describes the requirements to be met by FLA in order to obtain a commitment for the financing. The letter in clearly not a comitment to provide financing. We have appreciated the opportunity to work with you and your staff on this important assignment and are available to assist in your continued evaluation of the alternatives for the Olympia Building/Gusman Cultural Center. Very truly yours, PEAT, MARWICK, MITCHELL & CO. Walter Z. Whitney Principal WEW -. pr 86­62h� I 3 r��ll� �' _a�a.. .._... r.e .� _• ._..� r. .... .. ._ _ � .. ..,. _ do ._._.� ENNtbtt 9 K"S60 OLYWIA WILOINO/00aMAN CULM L CENt" FINANCIAL IMPACT TO tNE C/TT/O.O.B.►• 9% VIUMIN0 PLAN a KmA ................................. ................ (0) .,......... tC) (A) (8) (C) 0) pOtP Developer 00 OW . Psyeants Cash DOSP Net Cash Forelana Interest OOSP MMet Nyments Not Ceef+ Cab outflow Outflow to pOSP. pintas ..`.._.. Tow lneams lntxw outflow To twee ......._. ...... ........ •••• •' 9ST,3t4 264.931 .635.419 689.313 •••• •• •.•..•.. /17.00D ........ 100.000 161,253 491,16a 493.147 956,060 280,778 690.282 692.379 i 2 117.= 102.000 169 9a0 295,762 177 702 496,348 310 S16 6"•� 3 117,000 104-040 "1.090 194.181 685 i• ' SW,142 , 674.312 4NS.tK9 1,014.579 325.564 647.772 4 117,000 117.O00 106,121 108.243 191.202 50•353 340.913 �+� 507.461 1•�•� 700.549 702,943 S 6 1/7,000 1i0 400 . 701.SS4 �•1� 1.OSS.668 357.009 20a,4/9 Sii,SSO 373.654 705.156 7 117,000 112.616 MAN 217.08 $14 960 1.06.69 7,81.096,213 39.15 707,662 a 1/7.060 111.00 114.869 117.166 74,4o�•,�s1a,430 522,959 1,120.11707,044 710,624 9 iD 117.E 9/8 •••. 10,263,326 3 34b.35b 6,99t.44a •....... i,m.000 1.094,472 4 470.1SS 3.O62.S3S a...3S 6.957,662 ' assea■ems s OW's estleate of the Foraea+a lncersst interest ineam eaent Icy cantri6uNon of =1.300.000. tA) a lr=w it currently erns (9%) an the Proposed OW feet of O squa (6) OW estimates dut It could rentincrease Wes sIt'sand tti"S1hate Q: office space for $10 Par 2% Oat' Tur• rest estate takes. inwnncs and emintarmnce. (C) D06P's 0ross costs for rent. 7 Pion "' 6 (plan from our report doted 1/28/86, Emhibits We* Is Develops �)rw sod cash fta. prolactic" doted 2/25/66. CD)Dowtapar Payments to 005P. Dow Effective Nat Nent PM ..--Foot. Plan A ►ten.< > .• 17.1t 24.01 17.18 24.04 17.29 24.12 17.42 24.21 17.6024.30 17.69 24.40 17.82 24.48 17.94 24.56 10.07 24.66 18.22 24.75 -,. 101 0 1 BOOST 9 aEYtlEO OLYiPIA aufLDI1001010MAM CIA"M I CENTER ►IMAM IAL WACT TO TIE CITYJ0.0-1-r- Six ►iMAMC(M0 nAa a KANA ................................. tO to) (A) (8) OOSI' (C) DO Osvetopsr ODSP 0OSP Cab Devetopar h7rmts OOSP Met Cash ►ore"M interest sweet tab Psfuento Not Cash Outflow Outflow To COSP Outflow TOW....... lncosa Income Outf tow ...,.... to t10S► ........ ar.S46 .......« abt,76a _ • i« 117,000 .. •100.000 63S,4N 61.291 S97.537 937,314 956.460 97.351 an.7" 2 iiT,= 104,040 6ia,IV 65.590 69.3r3 604,6ST 975,161 104.731 803,410 a93.S66 3 417,000 104.040 661,090 674.312 73.012 619,853 99i,6t13 111.996 119,410 903.926 S 117.00D 11T.000 /06,121 10a.243 6a7,79a 76.702 4i9,6S3 1,Oti,i19 1.034•a70 126.9J0 914,492 6 11T,000 110,40 701,554 AD•"T 627,679 1.055•%e 134va" 925.04 T 11T.0o0 112.616 T1S.Sm A4'922 88,713 •47 "3,255 1,06.679 143,096 935,714 916.009 a 11T.000 114,D9 T.eT T4.41% 42Y�651.43 1.09a,27 151. 238 1S9.542 956,126 9 iiT,000 117,166 6S4 7% 1,120,177 -•---••• _ " 10 11T,000 Sloes"7S9,3a5 •.•.. .....•• ...... ......... 10,263.326 1.23a,700 9.09r.574 1,170.000 1,0%,972 6,9ST•662 ........ 70.Tia ...••B Boon..p 6,242.9T2 .... so.. """'■. .8....n. (A) forepm Internet interest incase reprasents OW's astimats of the incoes it currently same (9%) on the prapneed "pity cantributlon of $1,300,000. (a) 0osr estimates that it could rant it's sxistin0 101000 squers feat of office space for s10 per Wore foot, end that the rants would increase ' 2i per year. Q•j (C) wen orose costs for rant. rest estate taxes, insurance end wNMenwce, t from or report doted 1125186, Exhibits 6 (Plan A) and 7 tvlan M). (0) Developer paYmant s to OW. source Is oevetoWos revised cash flow projections fisted 2J23/Ob. Doer Effective Met Mont Per �) $*we foot/ • . ;ism A elan a •20,59 30.12 20.01 30.43 21.06 30.77 21.32 31.12 21.59 ISM 21.s6 PAS 22.13 32.22 22.41 32.59 22.69 32.96 22.90 33.37 t _q } ' PANNELL KERR FORSTER ' ( Codified Public Accountants February 25, 1986 1101 9rKkell Awenue s„t1e WO tlMartu. fL 33131 TileOMM (3051388.1618 Twes W3o55 yr. Roger Carlton Cable PANKERR MIAMI Department of Off Street parking 190 N. L. 3rd Street Niasi, Florida 33152 -+ RE. Flagler Landmark Associates Olympia Building/Gusman Cultural Center Unified Development Proposal for 7 °r...1 Miami Parking System Dear yr. Carlton: As promised, this letter is provided as a narrative to the complementary j' cash flow projections resented to the Selection Committee on February 24, p j p y 1986. }, For ease of analysis, a complete package of information has been attached herewith. Added to the information previously presented is a summary of the City's benefits under the various projections. "} In anilysing the four cash now distribution schedules (Schedules 2, 3, S, and 6) the same explanations and instructions as listed below may be „3 followed: t'3 1. Unadjusted Annual Not Cash Flow Before Debt Service (3) relates directly to the (3) on the respective aids A and a cash flow projections as presented in the Return to City section of the Unified Development Proposal. 2. The (1) and (2) on the cash flow distributions schedules also relate directly to the respective cash flow projections as indicated in (1) above. 3. As discussed at the Selection Committee meeting, due to the "Joint venture" (City and Flagler Landmark Associates) consideration, the unadjusted annual net cash flow before debt service was modified by adding back the annual contribution to Gusman Center and City lease payment to arrive at adjusted _ cash flow in order to determine the available cash for debt service and distrubtion to the joint venture partners. 4. Cash flow available for distribution is the adjusted cash flow less the 'respective debt service attached to the project. r -� 86-628 i :+ Mr. loser Carlton - 2 ebruary 2S, 19% S. The distribution percentage is weighted in favor of the joint venture partner that is "at risk" for the project debt service. Therefore, for illustrative purposes the city distribution percentage on the 112 financing in bid A is 332 because Florida Landmark Associates has assumed the risk in the debt service. Alternatively, if the City is "at risk" as is the case with the 92 financing their distribution percentage will be 67Z. *t' 6. The effective square foot rent on the 26.032 square feet being leased by the Department of Off Street parking is x` calculated by subtracting the City's applicable percentage of t cash flog available for distribution from the proposed rent, as illustrated in the cash flow projections from the Unified Development Proposal. The result is divided by 26,032. 7. Cash flow distribution schedules do not include costs necessary to acquire and carry the Rok property. These costs would reduce proportionately, the cash flow distributions to both the City and F.L.A.. P. 8. Schedule I does not include fees as was done in Peat Marwicks ' Exhibit 4 of their report dated January 28, 1986. These fees, although some of which are able to entities to which g Pay the principals of F.L.A. are related should not be considered as part of cash flow to F.L.A.. These fees should be considered ordinary and necessary project expenses that would be incurred regardless of who does the project. I believe that the above explanations should assist the Selection Committee in reviewing the cash flow distribution projections. Should you or Peat ' Marwick have an questions regarding this y q g g ,please feel free to contact at at 4r - your convenience. Very truly yours, PAWELL LERR FORSTER aurence A. Berrup Manager LAB:bg cc: 7alet'e'r E. D. Eeauchamp rtoR.Cardenas 'Whitney 8s-62tj lqpp low mows 1pepiibl aF i:7t "'l:iJ T to im "Kim tttafvW m ! ! :u SIAL !n as 1 amt AD cttt emit!. m+ ctn lfmOINn. !rig r,m $t! M :�la.tx m'm H! ! i lilt ilfilM. .S tti�tL CiR t.Nt� aw "WALL, cn MWAM sMi - t.ts.m !.lit! W ♦ Ctn Nt,t\f FAA ub R 6) 1 74, M Pion twom Ow MLILI 90MILTgMMM 11% 1 too 1, q4tKa 36 VW va PA room 3 M43 ak" SAN 4%W WO WAO 0 Aw 1%0 am IMF J%Ql Iw • am walwo'n IMM OM MW Ass AM 26to 330 34.40 316M 3S.05 31698 V.3s 3161a 3160 AGN Lou now of f 3MM saw IKS* W&S tMid IMM MW GA W 6%42 OXM co PA SAM 0.04 3MA4 MOM SkO4 g4ag AIR 31%IP 3,MV4 3KIN mom W MM03 v%w 1.3ma Ma Co VA Mai" Mtls3LM jLM 33M tr 3LO, 3LW ILM 3LM 3LW SLM 3LM • 14M VW n%?w 0 E630 1402 ILM IMjo jyja 160%30 lift 406 in -as "kM FAA 1WLWA Esau RLM I%ln U%W ,AM ,ate eN.ut vw. rff-. a? tpc Act a IV tt•ma cr cr A 11Rp U{o{M1 r.1.Ll AieMiat1� � {� ID Is � N UK " LOW S1CVW I t1 M11 n OM s%jj%W 3110 , R01 M is 1}{ II RN 4% fey S4 {M :MWA MW : � Mti T►MIsM1 moil" 1� /MPIUMM..M11 e1.1y W WqW It li{ Mi � t1 .Mm Iswa mnn m a«+ �.'" �."` e1,M. s x.,Ic � w AIR Am om AM Age AIM 31.0 '1''es .30 • Lon {IIII�I1t Iu !!1„>A iM,�1 iD.� pig► w.{x ;Yn:»' >oM1eM'aee nur gM,Mt 0,10 U4.w !1l.�I! �,� tl1.lt DI,s1 e1. em>a 4^100 NUM owl on IKW VK310 WIN �. qt M4 ��.� sane �>�� DO RN swap" 1M Ixf waw Kos II1.1K IO.:17 INSa+n aM{ SUSas aM• IM.Me imlef !>e. ssr >11�w 1%0 art M 1M.va MI.� 1M,!! ut.1u Its to . inns s�ia s►.rn �I. so 3869t !! MA mom 311,on {M O {N.11 {1t11 SILK{11.11 n1.s1 {11.0 j1e UNT. for,S 1160 a R {M i ML3S {M.M i) V)- . 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Mt./off calf N• h.t fshl••s�i/ war Has ale. ft.l 1t•►1••• W211,0I f2q 831s 211a 1t7f 7f7f 1f» 7111 ?17f fleet •••s •tads Bass 1 q•Nee.•••• vassals 2 d11•te••t fail p. f1.1 Ite►/••• U301941 .. 2a• . sad• 9396 •33•. • stss..• flat tall 714L«.12e2• . »•?. lists$ pews) 1 2 r1 �• 1 e••.w..elT laic •�. ease Itaele•s 3/31//11 I34136 444111 433937 dfal3s d?111e 49334 91.11 49s73 ds3041 f•flt ts•ast 21524 12331 s360e 1 e. e. e•I• ITa.s2T ft.T •daft 157fd •tits •1t12 1 1s•.tfe "Goofeweet 12.I11 •t. it. 1gt2a /lasts p13f1 239313 e/1799 ssadid 3T1f96 3s419s ss3a1e "71" / 1 Total eflls• Met . N13366 ujN2• ,23fii ?wawa _ _ »iiii _ 7Islas 1316 i 11f7» siii i» 1 f . « Costs seerel beat e•11• e12N1• M111t•1. • •• deed• •' •'« 14SIT 22 Lees• 2/ neseoq INtef laneeal Wes13f bell eau, R*Yen set3alM $3/912 679402 N•d•f 41112/ IU339 7T31sa 140490 »lead "erit. 7a4131 t • - 1 o••wL orcul/os NsovaLl m • • 1 1 /sa of a.we•3 "Jesse& sees 1•e12t iltde 3231t 7•»a J•o•1 asses asass »•aa a71a. 3933/ 3/3 sloss- ib•1 %•tat• wsa-w— «++.�»••„� IIw-sew• Luses a aetlt t•MM•• -•••�• � — s �.�... deed„i•• "see • 2aasi_21e.s~• t: 1 223fU 33974 7)d23i27t•T 213.1 IL9:::%8aT aweswomm e...lme ANNflit? 94 or sal swt M121 31324 3s23s fees? 35569 use& 38229 12s71 a7••a 72967 311•• 332•5 lases 23ssa• 3s••a No wetoo •�.wa•NllwMt Il.s: f1•Woi �• o smaml7e•.e•a. 1na2 evil 2e026 sees U34s seas U364 saes 9430 "it fell Joel? 1e301 lau2 lea•.r H.l» .s. tad 1 t..esl • rfii « 11174%13�f • 129 1- 13•eN eep•wta M twee +• • • ....• • »...- • • ?less` 3•a»• 3Uioel 13d1t 131U I ••.. e•wa •�-� • • • • ......�•• I•fs•wtepr $sat 91% el oee.•s IId�2•.tas s•wa s•1l! aN 32.10 asses �"'�"• �i::l2r V) 33p• 34494 3t119 Jfa7f 3tfa3 3132t iseas lsa•e »has I. T.t•/ t.•.. eiP•Y• w flow33aN 3Jsd1 92992 71s33 f2s7d aas7s rn•T 21�.l1S � V+ /t 14-2 lowa•pu.aleft toi.ee•• C•Ite••3 Congo a•a•e (2) aa•a• Is•sa gifts ' 2013063I1.920 iulff Jaf»• atlsaa asllaa aslaa• N/eallldlt•'11• RnMts MYiR lstela 17tfie 1731ss 1Tat2f uew�L MpATIMC • tstaN Ha/I1 Mf2di fffl•t 3as11a sa.ela 39164f fset•t 3t16H ft311! 36264s 113426 leaflet N•Iff tee.0, l•ia•s ���� ly L Off 0 ea Ns mICR eel! 3a7�aMtaetl • lies 3•is•s aafs.3 2aitdl Jets•3 3s)s•i Cr ae 1• ..... 1eg32. lltall 32/s$$ J36443 146fas Sss7fa Ia1so1• 1llsseels. a H late• 1 AOMeaL net wave Ital l IA ' f • a. 22.1e1.0N 01f•Ns too 30 leave 6) loan trm MUM ra.161 �rOAttlAip� Iso� ! m u N p m. x to �aa� i s iaw�a ate if.Mbw ! t 1 • 161Agl Mt�Ot GS►.!!► 11608.314 VOMMOWLIVONRU 160I,IS : M30 I.Mgs .Mug 1^1v GIIAX R too t4g"il! ala mw 1tM w Iirin wm a, ww a m +k '+v AM�`*x � ma at tm Op GIM, 17t �pGla GOt.� .Okla Gmilt tG'�. 32 111MI q t.itG GItl,1D Gt1l,=M GiN.M1 aG smon aaio i. � In st,Mt !IG 1SG� atl.Mt MG W ' � yGMy CO RP � 1M Htt 31M 3LM It W IL1M 3LO UM Ma n't* XLW1� ar to V%o MIN M►,0 36^W i.4R M<M f t�0 KIM MW MSS 3MM M an 1>k4o 1^10 1M.� �' le ' M1.*M1 l0 30 WAS a.1l 30 t.LR �� ItllR gGa1< A4, U%Kf IM,It< SlsM1 ' sa s emu aq.!! i ll.a iliN .sss .n.x owttit win. tart is I%Gt M fr •ts tt iq o iq.s 01— a a`' }iLm UWPM „Kars W.UVI >t hint IkM ILUMOM x trERtUtI/ ilr M ' 1 Olw Mc tt>«gmw • its <rU sm +t.11t,Kt t ' b�R H3 1,it+s i,pl,+ls t,rM,a3 t.KtiKt yx►.t3t tt,K�.3U gMMI = "a 0 tiri No low" t.^so LOOS t.�.� R� �� R� tl�» WlK u .IIK WW 0 K,ad 11.0 R � MaL A "W sRt !a t141M KyaK +T.M AsI!'1M K.'71 x,= Mom y,II1 M.KI at,Met �.'� at,Kl ISKE 11Ir00 to I,IK,tt't t,twm I,ttt lli I.tK;,tN 1.IR ast tt.'IS3.3! ttw � I,lIf,�1 I.teatea I.tt1,3n L� �W,w !!t �.!= ttttrJe tK,S 111,t1!! tt�l,x� tt� ?AMtR12 tt10 rir►a "16a fortdrta 31a W a9t,tK ati,K+ att,pt ut.+K 3,733. 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Mli1 4n.• w� 1\a .l •• N Niel ,fa\a uNlr iseea '}toot Itlsa tt � 1!{ nl♦ alto "It Hoot }}ail !}tar NINNtita! NN.t.••• 1•' •N• I Ntln 11•!tk M•'N•M/ rkaN MlN "I}a qN♦ �Nf imaNi itrsa tea♦ liege, il» M itatt ans Nlat••' •tal•• 7...wa• tf1'a . rN.eaN .n 9111 ai teak Slat" tj Nat yN par pkI NU NI♦ Nit pd ,r/H N7p Ni s... esn oo a •age 1» �a Got"r~r psq� it Get Me"GO NN at'{' sMN tan ant ante N}N Ma !lair 'rnlr 218,99$ nt N•d a•1 pINe „M cti ti! fear! ra}NMa N Slip :� Ufrt I'm "ON igeN l}fft ltNo ktNf t1Yfal nits, !trill mal r Haab !}tits »al! Ms1 7s, iMiN N one" ptN•.f •.esa• teaN to"" »e}ai 7itvt t}kfik �'�� . 711ka•rri N}},•IA tolark!! fro"'" ~ M•»• Kern r non roast . ,oft sl ��t wawa rootMN 1N ad Slant N111 tr•N q!� atla i%so$ '»„f „UN 'v1� 'iva 31 loon ieap Ha» Ii.N /1»} i,aar i,I7♦ „• ft v ti,! It•oo ttftf U♦ f!i\• »too rsNf u ,gee !totes gel iai YJat nta.N tN.Ro •rr•t••••a ltilr•e.N. 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H c _ V . 1 s) • 01A EXHIBIT B FLAGLER LANDMARK ASSOC. 247 Minorca Avenue Coral Gables, FL 33134 305-445-0819 May 28, 1986 Mr. David Weaver Member of the Board Department of Off -Street Parking 190 N.E. 3rd Street t Miami, FL 33132 RE: Renovations and Additions to the Gusman Theater/Olympia Building Dear Mr. Weaver: Attached you will find an economic proforma we have completed this date which revises the square foot rental rates, financing rates, return to the City, equity participation and other items. We have attempted to achieve in this economic scenario two primary objectives as outlined by the Selection Committee: 1) that the financial return to the City be equal to what it has been over the past; 2) that the rental rates be similar to market rates but with consideration given for the public areas. It has been suggested that existing City tenants in the Olympia -and/or other City agencies could be occupants for the office space that DOSP does not use in the remodeled Olympia Building. Based on this assumption, we indicate that a $22 full service lease will carry the rented office space and the 9300 s.f. public space, and provide the City with an equal return if proceeds are divided 40/60 between the Owner/Developers and the Developers carry the financing. Mr. Cardenas and I look forward to discussing this proforma with you later today after you review it. JBDB:ef - - _ cc: tAoger Carlton, DOSP Yours trul.►, FLAGLER LANDMARK ASSOC. ��tnaging es B.D. Beauchamp Partner 86--62h a "a i r FLAGLER LANDMARK ASSOC. 247 Minorca Avenue Coral Gables, FL 33134 305-445-0819 ;} REVISED GUSMAN/OLYMPIA ECONOMIC PROFORMA Renovation and Additions: Plan B Project Costs: $ 8,500,000 Sources of Funding: F.L.A. 850,000 F.L.A. Financing 6,350,000 ii D.O.S.P. 1,300,000 $ 8,500,000 Annual Income: T eater by City) -0- Lobby, Arcade, Public Areas (5,398 s.f.) -0- i Basement Dressing Room Areas (4,024 s.f.) -0- (1) Retail Areas: Rok Site -0- s_'•:`.:.'t 3664 s.f. @37.57 existing 137,647 Percentage Rentals 17,156 D.O.S.P. (8-10 floors) 25,406s.f.@ 22 (Full Service) 558,932 a Theater Management Offices Ord floor) 5135 s.f. @ 22 0011 Service) 112,970(2) Office Space City of Miami (4-7 floors) *` ? 30,962 s.f. @ 22 (Full Service) 681,164 Restaurant/Cabaret 75,000 Total Annual Receipts $ 1,582,869 Annual Disbursements: Vacancy Factor (10% of Retail i Restaurant/Cabaret only) 22,480 Management and Leasing @58 75,000 Legal and Accounting 15,000 Direct Operating Expenses: Electricity 115,000 Janitor and supplies 125,000 Insurance: Fire, extended coverage, liability 30,000 Repairs, maintenance and reserves 75,000 Water and sewer 35,000 Security Guard Service 40,000 Exterminator, trash, gas 12,000 Miscellaneous 5,000 (3) Ad Valorem Taxes 11,250 (3) Real Estate Taxes 25,000 (3) Real Estate Taxes - Rok Property 21,000 Total Annual Disbursements S 606,730 (1) Assumes that Rok site is developed with no arcade and that existing retail areas are not reduced in size. (2) Assumes that existing City of Miami tenants and other City tenants can be located in the balance of the building at a similar rental rate. (3) Based on retail and restaurant/cabaret areas only. 8b-t) %6- E Net Operating Income: Debt Service: $6,350,000 @ 10h% fixed 30 years (11% constant) Cash Flow for Distribution: Prior to Depreciat on and Income Taxes) (2)Distribution: 40% City - $111,055 (4) 60% F.L.A. _ $166,583 $ 976,139 698,500 $ 277,639 (4) The return to the City from the Olympia Building during the period 1976-85 averaged $111,225 annually. tsb—bz