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HomeMy WebLinkAboutR-85-06394-as-'lo 6114,18S RESOLUT 101t NO..__ A RESOLAITION ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER FOR THE SELECTION OF DECOMA VENTURE AS DEVELOPER FOR THE DEVELOPMENT OF PARCEL 44 WITHIN THE SOUTHEAST OVERTOWN/PARK WEST REDEVELOPMENT PROJECT PHASE I; AUTHOR- IZING AND DIRECTING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE A CONTRACT WITH THE PROPOSER ACCORDING TO THE APPROVED BUSINESS PLAN; AND FURTHER DIRECTING THE CITY MANAGER TO PRESENT THE NEGOTIATED CONTRACT TO THE CITY COMMISSION AS SOON AS PRACTICABLE FOR CONSIDERATION AND APPROVAL BY THE CITY COMMISSION PRIOR TO THE EXECUTION THEREOF. WHEREAS, the City Commission by Resolution No. 82-755 approved in principle the Southeast Overtown/Park West Redevel- opment Plan; and WHEREAS, by Resolution No. 84-893 the City Commission authorized the City Manager to issue a Request for Unified Development Project Proposals for the Southeast Overtown/Park West Redevelopment Project Phase I; and WHEREAS, the City Commission selected Touche Ross & Co. as the certified public accounting firm and appointed members of a review committee; and WHEREAS, the request for proposals for the unified develop- ment project contained specific evaluation criteria to be used by the certified public accounting firm and the review committee; and WHEREAS, proposals for the development of Parcel 44 were submitted by Decoma Venture and Circa/ Barnes s/sawyer in response to the request for proposals on December 14, 1984, the published date for receipt of proposals; and WHEREAS, the certified public accounting firm developed a model, to evaluate the viability of the development teams and CITY COMMISSION MEETING OF JUN 13 1985 10N a'). 8- s ,+ their ability to maintain prices at proposed leviels, the viabil- ity of the proposed financing strategies, the viability of the Pv r proposed projects# and this short and long range economic and fiscal return to the City and rendered its written report to the City Manager; and WHEREAS, the review committee received the presentations of the proposers and, after extensive analysis and discussion of the proposals, rendered a written report to the City Manager cones +Y. taining an evaluation of each proposal based on the specific evaluation criteria included in the request for proposals; and WHEREAS, the review committee adjudged Circa/ 8arness/ Sawyer and Decoma Venture development teams as qualified developers for Parcel 44; and WHEREAS, the Miami City Commission by Ordinance No. 9662 t! =' established a Miami Sports and Exhibition Authority; and =3 WHEREAS, the Miami Sports and Exhibition Authority has set- *` ected the Decoma Venture as the developer of a Convention/ Coliseum/Exhibition Center or the maximum components thereof; and WHEREAS, the Decoma Venture proposal entails the utilization of Parcel 44 for the development of a component of the before - mentioned facility; and k ,4 Y= WHEREAS, the development of a Convention/Coliseum/Exhibition '4 Hall or maximum components thereof will have a major beneficial impact on the Southeast Overtown/Park West Project and the over all revitalization program for downtown Miami; and WHEREAS, the City Manager, taking into consideration the findings of the certified public accounting firm and the evalua- tions of the Selection Review Committee, recommends the accep- tance of the proposal from Decoma Venture for the development of Parcel 44; and WHEREAS, on April 11, 1985, the City Commission accepted the _ recommendation of the City Manager for the selection of Bevel.. opers for parcels 24, 25, 36, 45, 46, 55, and 56 (Resolution - e2w 'Vz } i r. 4=. No. 85-303), and an May 9, loss# selected the developer for s s Parcel 37 (Resolution No. 85-478)1 NOW, THEREPOM SE IT SOLV= 13Y THE COMMISSION OF THE CITY OF MIAMIr FLORIDAs Section 1. The recommendation of the City Manager is Alaccepted and Decom Venture is selected to develop parcel 44 in r the Southeast Overtown/Park West Redevelopment Project Area l4 Phase I. Section 2. The City Manager and the City Attorney are hereby authorized and directed to negotiate a contract with the aforementioned development team for the development of a Conven- tion/Coliseum/Exhibition Center or the maximum components thereof according to the approved business plan attached. Section 3. The City Manager is further directed to pre- sent the negotiated contract to the City Commission as soon as practicable for consideration and approval by the City Commission prior to execution thereof. PASSED AND ADOPTED this 3th day of June , 1985. ATTEST: l 000 RALPH G. ONGIE CITY CLERK PREPARED AND APPROVED BY: Lv ROBERT N. 9ECHEN ASSISTANT CITY ATTORNEY �EP + Sh t"/�� eaMY Z � kv;� S t ZY i „y� �Nr4 �}+- ��^ •$,Th ��Y'aj ,ter i�F�„�{ ������ x� �� � � sfr�` � � ¢ � r..� Ff ���.iY. n R `� �,. K• ='tn 1 i i S'� r �y - ����\'Yr`M� -� t fit} -s i 1� "}"i �` � -d '� � k s y4,. L'a � ^x M 4',j4'?j5 _ µ� �' f?. %+�• � .& },ytY r .i ? � ' R � Y•,��7�.,5 �� 4 3�� l # ;. t "r .., 1 `iF£A �( P.r � 3tG,� � 4r � f• Lt ' i � C� ^ay. � 'i t ? j 4 l d i., .+. yam✓ '} t�x„� .t�: �y T A S L F. OF Co 14 T 9 N` S SECTION TOPIC 1. Business Plan Summary l ackground and Overview 111, Exhibits IV, Financing Plan bFinancing Plan OOomputer Projections °Notes to Financing Plan V. Minority Investment Program VI. Public Transit/Parking Issues hhh/m26 85--639 x �, t j +r.✓-''.� .�y F �i 5 '+i fi . i ,Y 1y ? 'r 3Y M + t rxy,ab.�+�,e, t "Y" K +mot. .�p,ywXr -! }sk( +-yr �'•-' "�'�"'p„� '` ..,y b ka 't4;T F fr'i z,,'"7�J' FSe� ,h '4Xr �k2f; .' tilIStNtitS ELAN SUMMA%y The Deeema Venture is pleased to present its business plah to the MSP.A and City of Miami for the implementation of the Eiseayne Centrulffl Sports Arena and Exhibition Center. The following business plan for the creation of the Biscayne Centrum n has been developed by the becoma Venture In cooperation with the Miami Sports and Exhibition Authority and the City of Miami to Incorporate their concerns and desires. The salient features of the business plan are: 1. Completion Complete both the Arena and the Exhibition Center by 1990. 2. Phasing the Arena and the Exhibition Center Finance and build the Arena portion first, the Exhibition The development schedule would be Center portion second. as follows: y=' Start Begin Construction Operation Arena 1986 1988* Exhibition Center 1988** 1990 *Arena suitable for beneficial occupancy at end of 1987. ~ **An initial purchase/option contract for select parcels of the land for the exhibition center will be made earlier at the direction of the City Commission, for the purpose of the reality of demonstrating to the exhibition industry the exhibition center. The primary rationale for building the project in phases is to to the City of Miami and facili- reduce the financial exposure tate the completion of both projects. Given the desirability of phasing in general, we carefully reviewed several different possible phasing plans for their impact on financing and feasibility. We would, of course, be pleased to pursue whichever phasing strategy the City prefers. However, we the MSEA and the City that concluded with the assistance of the development plan shown above is the most feasible. The benefits of this development plan are: 85.639 a a 1=jt�ae�clal �@�e'l�it� 3 Elie City enjoys early infusion of private capital from the lever - becama Venture into the arena to create positive Age. b The City enjoys Its share of net cash flow from the these proceeds to assist iii the arena earlier and can use financing of the exhibition center (which has no project= ed positive net cash flow) . c. Because the arena may not deplete the Convention bevel the tax i opment Tax as the exhibition center would, accumulates and earns interest, creating more money to be used toward the exhibition center than would be available if it were built immediately. d. The City does not have to issue a bond of any kind for do if the exhibition the first phase, as it would have to center were built first. e, The City's total financial contributions and exposure are than the exhi- minimized by building the arena rather bition center first. For example, the City reduces the projected use of its revenue sources. See Exhibit I in Section III for a graphic depiction of the financial benefit of starting the arena first. Non -Financial Benefits: w f. Land assembly is facilitated. The land under the arena land under the exhibition has far fewer owners than the center and is generally much less developed. 9 . The City keeps alive the potential for a professional basketball team. The current potential NBA expansion be franchise will be granted if any only if the arena can ready by the 1988 NBA season. This also has a NBA financial impact, because the early signing of an franchise would significantly enhance the arena's success the — and thereby produces incremental cash flow to exhibition center which otherwise would not occur. for NBA franchise Miami may not have another chance an for several years. h. The schedule fits the requirements of the booking agents ,3 for such facilities. It would be difficult to book events if the at the exhibition center prior to 1990, even facility were ready earlier, because major convention book their events four to five years _ center users often in advance. Arena events, on the other hand, can be 85-6349 Kok Y 4 '�� :.. "s >. -r r ♦ 'r T: e . i k 5�;3}+ tM' 11,etJ On fdUktiVely short notice" 'By opening in the dx1ilbitio-11 tenter can be marketed more §UttetsfullY to the City Will hot suffer the financial burden Of am e,Mpty facility, Note that the tnatketing of the exhibition teliter Can begin before start of construction by virtue of the initial purchase /optioning of select parcels of exhibition center land prior to that time for the purpose of demonstrating the reality of the project, J. Metro Transit usage will be maximized. The arena, built first, will create considerably greater incremental use of the Metrorail and Downtown People Mover than would the exhibition center. Both of the facilities can be operational by 1990, within two years of each other. 3. harking Garage, Traffic, and Public Transportation Construction of a new parking garage will be delayed until the demand for additional parking space is sufficient to achieve a financially feasible garage. During the interim, Decoma, in conjunction with the City of Miami and Dade County, will encourage Metrorail use, People Mover/Downtown garage use, and private surface parking where appropriate. to See Section VI of the Business Plan for a detailed discussion of this part of the business plan. 4. Hotel Opening of the exhibition center headquarters hotel, to be developed entirely With private funds by the Decoma Venture, will also be delayed until the exhibition center and arena are operating to attract sufficient hotel business to make the hotel 1Z financially feasible. 5. Costs ($ millions) Arena: Construction cost $ 36.5 Projected total cost 65.0 Exhibition Center: Construction cost 41.0 Projected total cost 100.0 See Section IV of the Business Plan for more details about the cost. 85t-639 A Ll K Mina AL �tourtfj§ q tfollians) Arena 41 Conventloin DWelOPMefit Tax (96nd & Ree-e-100 beta Venture private capital Is Me Exhibition Center-. Convention Development Tax 211. (Uond & Receipts) Adjustable Rate Demand Note (backed by CDT and various city revenue sources to be determined through negotiations between Decoma, MSEA, and the 6710 City) Sewer/Street Bond 5.0 Corp, and Foundation Grants 3.0 Social Impact Subordinated Loans (from major insurance company) 3.0 $10010 See Section IV of the Business Plan for more details about the financing plan. 7. minority Participation Our plan includes Implementation of all aspects of the minority November 9, 1984 proposal participation plan Included in our to achieve the goals and desires of the City. See Section V of the Business Plan for details of the minority investment program. jj/m26 85=635 8ACXtROUND KNO MLIRVIN submitted by the Decoma Venture on Navembvr 9, Although the proposal several refinements '1964 it will viable, this business plan incorporates sevL ons with the Miami Sports and Exhibition at, a result Of ongoing negotiatio ns Authority to respond to the concerns and desires of the Authority and of the City of Miami, in particular, the City has indicated several new concerns and financial objectives since our November 9, 1984 submission which have encouraged Decomals careful review of all elements of the original financing plan. The most important concerns of the City are: i. The City prefers to minimize further the use of the limited unencumbered general revenues which Decoma had identified as secondary sources of revenue for the underwriting of new bond issues for the arena and exhibition center. 2. The City prefers that the project rely more heavily on the convention development tax and private capital. 3. The potential for a UDAG (Urban Development Action Grant) is now very low. 4. Further cost economization on the arena and exhibition center would be acceptable and preferred if enhancement of project feasibility and lower costs to the City resulted. . The City would like some si gnificant step taken toward the S development of both the arena and, exhibition center, some- thing convention and thing to substantiate to t sports /entertainment industries that both projects are a reality. The Decoma Venture has been working closely with the Miami Sports and Exhibition Authority and its advisors to develop a business plan which incorporates these concerns, while providinthe City it essen- tially the same project, in the same location , g created by the same development team. The key strategic modifications to our November 9, 1984 proposal include: 1. Cost reduction. We have reduced the estimated total cost of the arena from $78 million to $65 million, while maintaining a first class facility comparable In quality to Reunion Arena in Dallas, Texas. We have also reduced the estimated cost of the exhibition center from $117 million to $1oo million, while maintaining a first class, marketable facility. Phased development. Rather than building the arena and 2. the exhibition center simultaneously, we plan to phase 85=-635 Wr."NTY ..... ..... )9 .2 sm tifir - 11 a 44 A tin,,h&,jU and tb,nttrUetion, at, We proposed at an I altefliatO in iour November Do 1084 proposal to that expenditure!; by the City are spread out over a few years rather than incurred lh ,Jump sum at the outset, t3isc,ayme Centrum would still be one project, but would be financed and Constructed in phases to maximize the City's financial leverage and the probability that both heeded facilities can be developed, given the desire by the City to limit public funding exposure. 3. initiate land acquisition for both components. Our plan optioning of select parcels C ''I iEl 11 IjIE168ej in-aking an ini"E''i''aFl l PU`�'si of land for the second phase well before the start of Construction of the exhibition center to provide substantial evidence that both phases will be built. 4. postpone construction of the parking arage. We propose SeMyMg construction gar -age unti t e demand for additional parking space is sufficient to achieve a financially feasible garage. During the interim, Decoma in conjunction with the City of Miami and Dade County, will encourage Metrorail use, People Mover/Downtown garage use, and pri- vate surface parking where appropriate. S. Significantly increased Decoma private investment (via IDB) in the arena: $9 million. These strategic refinements are developed in further detail in the sections that follow. f/m26 85r639 ri T �' WM X, ff VP Z ri -Z I p, NY - '4: r", �i Y4 6? Z� OF :—Xy '4 ''t 1 ?: f 7 T'� � 4� I �� r f ° i r f y.r. _ n . �r n`"f. .. . k_ FINANCIAL ar-NEP1T TO CITY OP RUILDIN6 THE ARENA FIRST P, tour Business �1�t1�i � Arena Phase 1, Exhibition tenter Phase I k Phase i yens Phase 11 Mst" on center _ tart 1988 tart 1$5 Open 1 ��� — Open 1988 Advantageous Leverage to City 6.0 Other non--becoma Private Funds b $ NCF to City 6.8 CDT Bond B 0 Excess CDT Accumulation 5.0 Sewer/Street 0 Excess CDT Earnings Bond 14.4 CDT Receipts 9.0 Decoma I DB 13.0 CDT Receipts 67.8 ARDN Backed Partly by City 43.0 CDT Bond A Revenue SourcesXe k $65 million $100 million Arena Exhibition Center * Pledge of City Revenue Sources: $67.8 million * Actual Use of City Revenue Sources through 1999: $42.5 million * Present Value (@ 10%) of Use: $17.7 million Page 1 of 3 85--638 y.,�^'�i^ w: � 3.'�.: }9'" � t-, `�.x � : y. � � y ye 4 `i f 2s+i�t 'fir s •k� a..: .'� � �`�5, � .,P� t.v .k� � � s g 4e7 a1��� - ', � "ktu:'?� s. a ``' ,; 9 .�� 7l; �"' '}� ,� !«i ukh. ..�' L r`.• E �tt 1'`:.., �., x.a �� {���,,..yr _.j4t ayl.,, „9�7 �,.m.� dP��„1 H�� �,4 `CY 2eJ t.r �4. _ a tit y 4 L si, r.-. -i��p^�'� >�i s, ?�r '-a -y., •.J 1d a -S �t"ti•�, �+j." iY".?z '+Ya+�c'tyat'�" {Sf A'Kn�"�y "�1� y k�?� _A t t - 5 �� t� t cS �a � F4 Y rtx� a �,:.,, �. 7,��� r 5' ra v, a .'� ✓ � 1a4s_��ti. gN PN d - - - s k w X r � 4 � �.k. 7 Y�e+ ,� .t n<,a?� SetRx (a �., "� yE ;�.' � i^ *� ;: v "= < n t t v'. za x a r .• t .mac r 901bitlm C"te'i` Phmte It Arena Phme 41 phata 1 P" age it 1 # an Center t'i�f1a taf t 1986 Open Ma Opet) 1990 6.0 other Non Decoma Private Punds 5.0 Street/Sewer Bond 1 14.5 CDT Receipts 43.0 CDT Bond A 31.5 ARDN Backed Partl by City Revenue Sources $ Cr to City Minimal Leverage to City 9.0 Decoma IDB 0.3 CDT Receipts 6.8 CDT Bond B 8.9 ARDN Backed j t ntin'ued) Al Illoul. autjnet§ Mail" V. �+1�ypothetleal Revetrsrg�P_bgsi�i���; A Co�t�►ariiso�w "Hypothetical MOUr alltiheSS Plan" Reverse phasing' Arena/Exhibition Center exhibition Center/Arena ycars apart) (2 years apart) $8o Pledge of City Revenue Sources $67 pledge of City Revenue Sou rces 57 Use of City Revenue Sources 42 Use of City Revenue Sources $17 Present Value of Usage °Pledge in Phase 1: $0 $23 Present Value I of Usage °Pledge in Phase 1: $32 million This presents 0111y a hypothetical case, presented strictly for an objective comparison of the financial FT of doing the exhibition center first. It assumes that only the phasing changes, that all else remains the same. This probably s unrealistic in that (1) it is unlikely that construction of the exhibition center could start by 1986, given the unique complexities associated with acquis tii on of its land; (2) it is unlikely that the arena revenues would be as high, since the NBA team would not likely be available if the arena did not start operating until 1990; (3) the construction costs might change; (4) the first two years of exhibition center revenue in a facility opening in 1988 would likely be less (in current dollars) than one opening in 1990, because of less time for marketing. ggg/m26 SY• t � r� Y� a4+ X• 4 . Y t� 'i�'+ 4. k . F' S} v'� l c f-b•�'tk� ¢ �:-r �n E'". ..•Z�,r�.,�"�+``�i""$: W,tN3 si .�uw ,�'� '"'.cr 'pia ,,, m 3 �e���;`�'��'�k'�t�a•� ar �7 �,*t � 'i r �+ '. �6Y�, F :M ',�°• x r p f't't' t s �" SS aw eP$a^ i•x -t• i i ,�„ t- P �C r ` .Y'c-•� d `1J. 2 `�7 4s -. I: �- s '.4:. ?t ��i i�Y� ti T} jki4 -� `h� �� � � u �t� �; ti I iti' t t fie s t �ms-M M Developmotit Ttx �,��t�mmPtlbl% -- ff l n - ased CDT lout Business Plaii'ft AutTipti011" Assume $5. 20 tiili#t1i1 Assume $4.66 million CDT, 1985 CDT, 1985 C $68 Pledge of City Revenue of i�it 64 Pledge Y Sources Revenue Sources $42 Usage Thru 1999 31 Usage Thru $17 PV of Usage '`' 1999 Through 1999:: $13 PV of Usage Through 1999 1 kk/m26 Page 1 of 1 85-639 g i t # 1n tra sed tbol,,vL&hgom Development Tax Attumptimis "Introsated CbT "Our Business Plan'" Assuiiptionn Assume $4.6 million Assume $9v.26 rhiiiioti bT i 985 CDT, 19i; A kklm26 C $68 Pledge of City Revenue Sou rces *42 Usage Thru 1999 $17 PV of Usage ' Through 1999 Page 1 of 1 64 Pledge of City Revenue Sources L Usage Thru 1999 $13 PV of Usage Through 1999 1 85-639 IV FINANCING PLAN ,. 19l A ` 1 l l�iTRUM ARENA 15l-IASE 'I Arena; A state-of-the-art sports an'd ether® talmment arena equivalent ire quality to the Reunion Arena in Dallas* Texas. Private/Public 1�at tics atibt The City of Miami will be the owner of the arena with the becOma Venture acting as its defacto partner through a management/lease contract to be negotiated among the City, MSEA, and Decoma, and subject to legal and regulatory requirements, Capital contributions to the Venture: City of hliami $56 million Decoma Venture $ 9 million Total $65 million The sources of each participant's capital contributions are more fully explained below. Included in Decoma Venture's arrangements are the Decoma minority investors. Net Distributable Cash Flow allocations to the City of Miami/A45EA: 1 1988-1990: 50% 1991-1996: 35% t 1997-on 15% A Decoma Venture affiliate, via long term service agreement, will operate, market, and otherwise manage the Biscayne Centrum Arena. Estimated Development $(000) 1" Land Acquisition $ 5 ,950 Costs: q,500 site Costs (depr) __. 3,100— Arch 5 Engr 85-639 4 Milli'' ja. e ,.�'f�`.M- M ''"r.. e� �.� �Ga k�� '"Y� ° +k':"F ��rs ' '}4� i`.%k.++ni »sp•+. # � ,�u+ilc '�Ef .'Y "k. Furnishings, Fixt. MUIP Insurance & Legal Financing Costs, RJR Marketing Cen i; Admin60 Total Project Cost $� P nartcing trtategy Utilize the Convention Development to date, plus a bond Tax (collections backed by annual revenues) and becoma Venture private capital In the form of an I DB. Allocate to City a share of arena Net Operating income in the early years to defray underwriting costs for the exhibition center. The details of this strategy are subject to definitive documentation to be accomplished in the near future. Capital Contribution Sources: Public onv. Dev. Tax Bond A $43,000 Conv. Dev. Tax Receipts 13,000 Private ecoma IDB 91000 Total Capital Sources MAN • Terms• A. Convention Development Tax Bond A -$43,000,000, 30-year bonds (ARDN ) - -Issued June, 1986, by the City _ or MSEA -Backed by the CDT revenue stream, with 1.35 coverage -Assume net effective "lower floater" rate of 7- -Liquidity support by AAA rated bank or insurance contract, arranged by City based on pledges of CDT revenues ..M 85r639 12 14 IN sit�terest �r�i� #or first #ire ZVI service reserve for four months '0 11 % rate -MBIA insurance - -1titerest rate insurance tj. Convention Development TAX Receipts =$13,000,000, cash from CDT balance -Funded 4th quarter, 19$6 C, Decoma Venture private Indus- trial Development Bonds (IDI3's) -$9,000,000, 30-year bonds (ARDN's) -Tax exempt bonds issued by the City or MSIA but under- written by the Decoma Venture -Debt service payable out of (in order or priority) Decoma's share of arena net operating profits, ticket surcharge, and Decoma Venture -Assume "lower floater" rate of 7.0% -Liquidity support arranged by Decoma Venture via orches- tration of non-Decoma private capital infusion to the Decoma Venture coupled with the collec- tive financial resources of the Decoma principal venturers. -Interest-only first 5 years -Debt service reserve for four months @ 11% rate -MBIA insurance -interest rate insurance -Decoma minority equity inves- tors provide liquidity support for their portion of requirement (See Minority Investment Pro- gram) -Although the following sources may not be available, Decoma will aggressively pursue all as a possible component of the $9 million Decoma investment: 85--636 A A lulterett Only fbr fiifst NO elf s -D6bt service 'reserve f6f fOur months @ 11$ rate -MBIA insurance -interest rate Insurance g. Convention DeVeIOPment T" Receipts $13,000,000, cash from COT balance -Funded 4th quarter, 1986 C. Decoma Venture Private Indus- trial Development Bonds -$9,000,000, 30-year bonds (ARDN's) -'fax exempt bonds issued by the City or MSEA but under- written by the Decoma Venture -Debt service payable out of (in order or priority) Decoma's share of arena net operating profits, ticket surcharge, and Decoma Venture -Assume "lower floater" rate of 7. 0% -Liquidity support arranged by Decoma Venture via orches- tration of non-Decoma private capital infusion to the Decoma Venture coupled with the collec- tive financial resources of the Decoma principal venturers. -Interest-only first 5 years -Debt service reserve for four months @ 11% rate -MBIA insurance -Interest rate insurance -Decoma minority equity inves- tors provide liquidity support for their portion of requirement (See Minority Investment Pro- gram) -Although the following sources may not be available, Decoma will aggressively pursue all as a possible component of the $9 million Decoma investment: 85-638 Al priWatitation TfthMJ gAAfa Corp. Orar►ta Additional potential F: Capital Funding _ our e�: Detoma Venture will aggreteively sa: purejue the following altitrinate ` tourees to reduce the reliance on CDT reVenue5 UOAG 'flax increment Financing State of Florida Grants Foundation Grants or Subordinated moans E� �^+ 4 r�r�� 4 t i �,>t•' � �, + t .� a a hsy:.-i3 MR, r ��.ry � q {i.,_ � a�1'4S rfy y t } - a •�`! ,tea"} 3 a t � E a a � .rx ,i x�,4 '(mow � ; k v %`Y :. �, t '4 i i+. -4 tiY -k` i y }. ,y, d. d � � r ell Jy A' 3e•, ' t f� ,f*d+ § r -47 r M 1 or ttt4Ttp EXHIBITION 'k PHASE 11 CENTt A first class exhibition cefitert With foot rectangular square -exhibition floor at ground level. Owne City of Miami/MSEA, The City will Contract with a becoma Venture affiliate (via long term service agreement) to manage, operate and assist in the marketing of the 131scayne Cehtrum Exhibition Center. $000) Land Acquisition $ 24,000 Site Costs (depr) 7,500 Arch & Engr 3,400 Construction Costs 41*000 Furnish., Fixt., Equip. 3,500 Insurance & Legal 1,800 Financing Costs 14,300 P/R Marketing Soo Gen b Admin 4,000 Total Project Cost I100A09 Financing Strategy. Utilize all CDT revenues not required for the arena (collections to date, plus a bond backed by incre- mental annual revenues above amount pledged to arena), a sewer and t bond, an Adjustable Rate street Demand Note (backed by additional CDT collections and various city revenue sources to be determined by negotiations among the City, MSEA, and Decoma), supplemented by non-Decoma private grants and subordinated loans arranged jointly by the City and Decoma. The details of this strategy are subject to definitive documentation to be accomplished in the near future. Capital Funding Sources: Public $ 14,361 =—Receipts 6,780 CDT Bond B Adjustable Rate Demand Note 67,859 Sewer & Street Bonds 5'000-- 85-639 ) s ' private (hoh-Decoma) rp, h, rants �,�DO 16cial impact Subord. Loam LLD Total Capital Sources 1Db,coo S A, City of kiiami /MStA convention Tern Development Tax Bond B 2. t$6,780,000 30-year bonds (ARDN's) Issued early 1088, by the City or MSBA -Backed by senior lien on CDT annual revenues in excess of amount required for arena debt service -Additional terms identified above in CDT Bond A 8, Convention Development Tax Receipts -$14 , 361 , 000 cash from CDT balms ante -Funded late 1989 C. Adjustable Rate Demand Notes (ARDN's) -$67,559,000 30-year adjustable rate demand bonds -Issued early 1988, by the City -Smaller than original (November 9, 1984) financing plan by virtue of building the arena first which allows net cash flow from the arena and more CDT t fund earnings to be allocated to the exhibition center -Backed by (1) CDT revenues remaining after debt service for CDT Bond A, CDT Bond B, and (2) limited, declining u,e of various city revenue sources to OR be determined by negotiation among the City, which will be - more than offset by a signifi- cant increase in municipal tax revenues resulting from ._.. 85.. 635► W eXpehditures by the co-riveritiob delegates (the multiplier)`_ Additional terms identifier above in CDT 13ond A D, Street, Water and Sewer Band -$5,000,000, 30=year ARDN bond, issued early 1988, by City of Miami -Used only for municipal infrastructure improvements "Already authorized by City of Miami, pending approval of City Commission Additional terms identified above in CDT Bond A F, Corporate and Foundation Grants -$3,000,000 (non-Decoma) private grant, based upon community redevelopment concerns; ar- ranged jointly by the City and Decoma F. Social Impact Subordinated Loan -$3,000,000 consolidated (non-Decoma) subordinated loan from consortium of major insur- ance companies -10$ interest rate, interest payments only in years 1-10 -arranged jointly by the City and Decoma eee/m26 .. 85-'63. ti 9 COMPUTER PROJECTIONS %w a � 0�°iJad!-USI Discolor Cootrn Eibibition Center prelisiaarl.operating Pre -Fovea (a 1000's1 1906 19DT 190D 19B9 1990 t49t IMP1993 1994 1995 N194N - 199T 699D1 1799 19DS DEOENUES 2.221 2.111 3,307 3.747 4,300 4,399 1,029' 2.019 3,324r 3,594' postal Cast IT Services Not 13891 17411 10T91 t9861 It,148/ It,20Sr Ft,266P t,623 11,3291 t,704 11,39SP t,190 11,4651 P.979s OEVELDDNENT`OUpDEfi tailed Got tooces us twetl TBt 96t 40 f,123 46 1,2T7 54 1,472' t,546 69 6& 11 _ 1B LaseA04riettire f24t0001 Colorist INetl 3f - 13,171 13',399 14,093 ��61 f4,766 w__ _M 13.204 �_- �_ 12,254 «NMiS 15,31T 12,193 16,082 Rrcir 0 tool 1 r, Soo+ 31400t Total 10 10 f1 f0 {0 12,445 Crnstructtde tostot ID,0S00 EXPENSES 1,476 1,550 1,620 1,704 t,T94 1,914 f,934 Z,BIT 2,942 r I04 fFE Finiusefa9ICostIa General 6 Adsitistrative 235 40i 363 2.014 778 3,t02' 175 3.360 Bt4 3.746 934 3',934 132 4,130 4,33T 54; 4,2% 296� Gilt, aNair gl Geo+ ar SOoI 4 0Old . Repair 0 Mauteaaaee Utpair I NaOotesan 2,041 3t8 2,412 333 28l 295 232 241' 256 34 269 359 282 31r 39S presetiealAdvertifisg 253 268 201 215 3t0 323 -------- ------- ---_--- .__ rotor, Prriect Gott 9t00y0606 Otter Ilossrascol f0 i0 ____---' _____--' t0 Ids 3431 ____-- ------- 114 US,11501 -'------ tf6t1501 -------- If611301 11 11501 11 11301 NT1 SO1 11811301 11e1t301 Tatal t0 t0 t30t Costialescl 10 1t2,0501 112,0451 If2,1lBI It2,1961 112,0631 192,1901 112,2591 If2,3641 's""" tf2,4731 ti2,59 It """" OPERATING PROM I1f111 d0 f0 10 f0 aeons: vaults" rnasasr rnnsss samrn asmss nssasss rnsssss m""■ GAOITI� NM0111W SOURCE offers, iioUeiag Charlie msnn "cuts"anss»s "Sams FINANCING CHARGES Sosrcesx 1,150 4,150 1,130 4,15O 4,750 5,823 S02' 3,823 Sor 3,823 S82 5,823 S8F 5,02Lr 582 Pr6Tta 6&,Tsr to Adj. Rate Desaal Note I7S 47Y 47S 471, 390 47S 39O' 424 424 424 UT 42T Cjtv Band`gloadd!NOtte COT. Dose D 7t Sever/Street Bolds 350 330 3S0 CDT Semeristreet Goad# 3,000 Private 300 300' 300 30t 300 301 3001 CDT: caRttaCapitalFuadinFunding+ t4 6 ------- 300 340' 309 Social Ispact Private 10 f0 113.9751 ISS,0731 413,0791 115,07Sp ItS,9731 19T„1341 10T,t34h tt7.1341' Ht;,k341 tffi,t341 "--'-- Total Fisaaciq Charges f0 f0 f0 ItT,9251 t17,9191 tfT.9931 I/8,0711 (fT.9381 tf4,292p 114,3931 [iP.,490P tt9",604V H9;7291 carpi P�Fdam Grants 3;000 Social fopsca. Suds team 1.000 OE►ICIT FINANCING RE0UIRED f0 !0 t0 of total - tO0k,000 FINANCING SOURCES Coavestioa Devolepseas Us o Citl Revenue Surges road Earsiogf Total Soorces 0 NET FUNDING SURPLUSIDEFICITI s0 Events +' .' D 3,ITT 3,331 3,820 3,537 4,259 3,917 3',746 4,313 4,102 1,224 4.894 0.619 4,606 3,OTT *,air 2.538 3,9k3 Uter: Jan* AcOaisilnee (' OZ*+0001 .nk j g 0 0 4,172 4.114 3.898 271 273 27S 275 275: 213 sitr peW 4001 277 275 215 211 ------- Arch, w tosw o, construction boom 40.0go C 0 7.925 7.919 7,993 8.07i T,938 __ ~9,292 4.393 9;498 4,609 4.T2S fo oraace OlRegslFloaltioll Asew 8,000t %A D 0 f0 f0 f0 10 i0 10 f0 t3 q4 Cost /RtNarleetialxs via ftrwetialls' ft389 fl f0 10 i0 s0 Gar i Adata total Project Casa 111001110 136 1S3 169 1B0 759,009 193 022. 193 827,200 193' 82T,200 193 82T,200 193 02T,200 193 82T,209 560,000 648,000 711,008 23 500 23 000 2T,200 1 Atteadasce- 12.300 21.400 Est Incrolstal Tax Raeoses I.0001 11983'dollars) TT+<Jr7��}t�StWrTf••�.%•.7��if'•^:r,t��..��i{t _ �2, tt - _ 41 r i (.r tv v 4 v 4r V she V 100 Oat+ •N V BitC&gle Ceatree id Prelnal0 Arena Pre -fans O�slatisg t993 1990 t99R t99tP 1999t 1986 1987 ties 1989 1990 -„ 1991 ""_`.- 1942 1985 -„ 13,018 13,250 $3,ISO 17,328' 13,70, t•632 13',09P 1,740 f�f,084 0,82T pEtE1N1E5 11,653 $2,416 12,SB3 1,I55 12, 732 1'467 02,903 1495 1�520 43t 1�546 1,503' 3T3 I.379, 602' 664 956 qr 993s IM-Atotal Mail 741 220 1,077 293 373 $99 63S 666 140 733 689 TTt 723' 810 739 791 9 - gEVE10PMrENt'BUOW Concessions Private Suite' 108 426 533 499 S6S 524 361 ---- 595 623 __„-------- 6S6 ---" '- --�`„- ~- _- -„„_„ st,203 OT,563 „„.79t --- %T,941 18.3311 w„__ CandrAcquisisiov advertising Other „.-.----------' "-'-- _ ----- „14.819 -„-„---------- sS,20B $5.396 13,926 16,222 s6,S33 16,860 9tW CoststdepFK _„ f0 Total 11 f0 $3,451 12,221 12,336 f2,4S5 f2,538Sig 12,10T 12,89E Arco 0 Engk Conttruclioff'Costy E1tPEMSES 11.520 11.116 1!'330 f1�401 12,021 021 12,121 442 464 43T I'162 512 l 576 t,176 01 1,655 739 19T 1.14H' FFE Insuraocr V,I"*A „_- General t Administrative 173 303 sot 423 1,069 1.235 1,297 4 1.362 1S5 01 129 179' 134' tee Ut Financing Gosts P111 Martdiagt ReOatr 1 Ilatateoance Utilities 693 115 lot 9I 127 95 134 too 140 105 14T 1 116 6 122 0 0' 0 151 0 0 149 Gen, 0 Adele ProsrtiontAdvertisiag Insurance 87 1 0 V 0 116 0 219 123 12- 130 134 --„---_ „_r ___ _. „ --- „------ tfS,666p Total prejecte GoaP Aral Estate Tales 101 t10 -„_ .„--_-. -- Is1,Z4ti „„ 114,1501 „-„-„ If2,iB4 112,301, ItZ,269 tIS,399F other _ -------- "'--"_ f0 f0 1{2,6951 Is3,t411 1s3,4241 113,T101 114,IIt1 $2,083 92 542 Rf.Sifit f2'.67Z n'3="" s1 Total $1.61. f1,783 It,8S0 794 {I.TB4 t1,9H1 ttt11,98t .=ist=fit /1 t0 s1 $755 tfi tfisl,763 .fl11,954 .T=$1 OPERATING PAOFIT'Loss1 .as.sii■s so■rssis Cherges sass.sis ps.mis sif CAPI:TAIcFUMOING 50dkCER Before Financing FINANCING CHARGES „ „--- 3,490: 3,69o- 3,64Q 3,690� 3,b90t Sraree�; Pr11te ;,010 3,Ot0 3,010 3,OtB 3.0f0 3,690 3,690 M 20T, 20T 20a 200 Pubtitr COT load A at 1.5% tS0 tS1 ISO 150 IN ISO got 8aod! 0 Blscl 44 create tests t 30 359 350' 35t cor- Uoita Foo#tag Private ISO 350 350 310 630 IN 772 Ise nF 350. n2 TVISO, TV n2' TM ------- Rate Insurance 630 630 630 630 „„---- 630 -------- ------- '„V962 „�1,012 9,01E 3,01E S,OtB Musson peter& 10B ____-_„ -4,140 ____„„ 4,140 4.140 4.140 4.I40 1',962 4,962 Otcoes IO8!' Total Financing Charges 729 166 341 340E 391 145 400 140 Thing FINANCING SOINtCES 370 B39 692 N8 62S I48 693 t48 149 t4H 140 0 14V 0! O a Cit9's Share of Net Oper Income 148 118 0 149 0 148 q 0 0 0 0 0 0 O 0 O 0 0 O 0t Fan# Earnings Arena lidet Sales Tales 0 0 1 0 0 0 1 0 0 0 0 3,34E 1 3,313' 1 3',US 0 3,746 3 172 3,T10 77Z 3r,69t T72 8oex Arena Co+cessiai Tales Rail Estate Tales 0 2.994 2'630 2 630 2, 7l4 630 2.131 630 n2 tt2 g. 172 P n2 0 0 0 0 0 0 ---- haad Ac4eisdepli Arena Portion of COT 630 0 4 0 0 1 0 q 0 0 0 ____�_- ------- S[ter Costetdeptlt OeCss& Venture Debt Service iictst Surcharge IQeenel 0 0 0 0 -„----- 0 -�„_ 0 „ -----_ „--"-- 4,962 -------- 4,96E ----"-'_ 5,01E -- w5,012 3,0:2 sitiffssi 5,012' ot=s== AretF It flog CanstrretioA Gootss Citg Resesae Seorces� „„�_ ..----- „ 4,U0 �,--- 140 4,114 I,t10 �* 4,140 "" `_" 4,9b2 "' ::11f= ,i,11=s=. = ==f=f==f:.=bn sss ISO FFE Insurance lagegaP Joint Fiaanciaq Semrces stlssssst ......as .,,ss11f..ss*=<=*: ___ ""=f•== •____' IS6 1ST !S6 156 136 ti,S9H OOO 156 t,59B',001 IS6 L,S9H',000 IS6 1.598,000 f,S9E, Finn CiftV Gal"' r1w Mar►eting 112 tS3 1,583,000 156 1,398,000 1,S9B 000 1,S9B 000 1,39B,466 1,598,000 GeV 01 Adoitr Events oattesdance 1,091,000 tow Ptsjves 4`oap V l V e W O%Iso 4! SOOt took 3� sot j000 P,2701 7.151t ?so 3;200t #&s,0001 1%9i0< 4t;S00t 7,1004 ?6r, S00F P;010f P.230t 1;1701 ISO 3t,Z001 fi;P,00it I -A to %J s +L4 fy-� ♦Ri , 4q6 YLl �y's' +fir j •.t j�• :' �; V %F CogIright 1963,1904 PBN CorPt! Plat A Biscagae control Arena Prelititarg OPeratial Pro -Forma 1goo '%I 1903 1986 1987 list 1969 1"0 1991 1992 1993 1994 1995S 1996i 19911 194t11 199911 REOE7AIES $1,653 12,416 02,583 12,139 12,903 03.049 13,200 S3,350' 1,503 13,3211 t,578 $7,703 1,63T 93,090 1,T40 64p,OB4 6.&1 Cencessiu% IBttl 744 220 1,077 293 1.135 375 1,225 467 1.298 495 1,363 520 1,43t 346 573 602 632 Olt 604 69T 991 Private Suite% Private%iuq 408 533 565 599 635 545 666 625 740 656 735 771 - 754 79T 83T Other �10 426 -- 499 ____ M----- N-- --- Iq 13,151 11,818 $5.209 15,590 13,926 M-- -M- 16,222 --�689 16,533 16,660 -_ -- S7,203 - 97,363; M�830 $7,941 98',331t Total 10 EOPENSES General i Administrative Genera $1.521 11.716 11,815 $1.919 12.020 12,121 442 12,227 464 12.338 437 12.455 512 12,318' 33T 12,70T S64 11942' 592 Repairi NAdministra 173 693 303 Goo 350 923 401 1,069 421 1,235 1,297 1.362 1.430 1,501 ill 1,5T6 179 1.655 188 t,730 19T Utilities 11S 121 91 127 95 134 too 140 105 147 itt 135 116 162 122 128 t34 L41 t0a Insurance Real Estate Test 87 O 0 Ito 0 113 0 0 219 0 123 0 127 0 130 0 134 0 0 t48 Other f0 l07 f/ 112,6951 113,1411 M-_ -MNIt6 163.4241 (13,7401 -- (14.1411 -N- 114,2411 ---- I14,4501 -.-- 114.671; M-- Is4,9021' NM2891 115,2941 -M----- 115,3991 �- 115,660P Total 00 so 1755 st,677 51.783 f1,850 $1.784 01,981 $2.083' 12,189 12,30t 12,269 .....suss t2,542 :ar_ssee f2,672 OPERATING PROFIT Ilossl fe s0 .....ms a...ms. ssazss::s ..sz.aaea r-szszs:s s:zsmzz sm=ssss smazsss Before Finnciag Charges s.sms.. sameh...sam.. ms..........sass FINANCING CHARGES ------ ------ Public 3.010 3.010 3.010 3,018 3.010 3',690 3,690 3',698 3,690 69I'm, 3, 3',690 COT land A at 7.01 ISO ISO 130 ISO ISO 130 ISO' 150' 200 200 0 00 2 200 Block 44 Graved lease Private 350 350 350 350 351 350 350 350 772 3503501 772 772 330 772' 350 71 2 ' Rate hwraaee 630 634 630 630 630 7T2 772 Deter 101 �4.140 �4.140 4,140 4.140 4,140 4,962 4,962 ~4,962 1,012 3,012' I,Ot2 T,012' Total Fiasociaq Charges FINANCING SOURCES401 378 839 892 648 625 693 729 766 345 148: 340 148, 381 14� 14% 1 Citg's Share 01 Net OPer Ineeae 148 149 149 140 148 148 148 148' 0' 0 0. rand Earnings Arena Ticket Sales Tate% 0 0 0 0 0 0 0 0 o 0 a 0 1 0 o a 0, 0 In Arens Coatessian Tate% Aroma Real Esau Taste 0 0 2,984 0 2,523 0 2,4T0 0 2,T14 0 2.137 0 3.348 0 3,313 0 3,273 0 3.746 0 3,75t 712 D ?,710 172 3',69t T72r Portion of COT 130 630 630 630 639 712 772 772 0 772 B 0 0 0 Desna Venture Debt Service 0 0 0 0 0 0 0 Ticket Surcharge Mcesal 0 0 0 0 0 0 0 0 CitgRevemse Sources ------- 4,140 -------- 4,140 -------- 4,140 ------- 4.140 ------- 4,140 ------ 4,962 -_---- 4,962 ---_---- 4,962 ���_----- 5,012' 3,012 3,022' msamr I"Ola msazzu Total Fiaaociag Sources ..s..m..mms. m..... ....................................s...........Z..-.............amam .s....os Events 112 1.191.000 153 1,503.000 136 1.596,000 156 1.599.000 156 1.598,000 156 1.590.000 US 1.599.000 136 1.398,000 136 1.599.100 150 1.590,000 130 1,398,000 156 1,598,000 'RWAtteadance VI VI W cD Vy,. �• 1 r ,t..,t g'�i, �'% a gte l'.�.• a �Sf A•r r v-3srs�L 'X�'iy1 ,i �. - '.�'�%. •. •� •t"'Lea .►,Yv Y ,a...- 01 OEVELME01` BUDGETI Land' Acguisilicar 6%7301 Sttr CostsldeprU *,So* Arch, 0 Engi A too. Constructitnttaste. 3k,Sor FFE 2,OCIR Insurance Is Legal !, 230E F►nancie% Costs T,750 Pla Mareetitg, 750t Gen M Mote A2001 Total Pro-joeV Cosa 665!,0o0H CAPITAIL FUNDING. SIN. MS Snnrcesc public CDT. D%td! 4 430,,000! car: clottar Funding 1.31,000 Private Decals lost 7.000 totall d5,000 Uses: Lane Acgnisiftoro 05,950' site Costsldeorr 4;500 Arc* M Eel 3; top Constrectiae costs 3M,SOOt FFE 2;00a Insurance Il 111 11 Financings Costs T.710 Pie Narketingo 7301 Gen° a Alois A260 Total PrejeeM Cosa q&%000H J _Ar V Copiright 1983.1924 PBH C$fPGf pigs A -41 1j:cajR# CII Orelial 1983 1916 1907 im 1989 1990 1991 1992 Im 1994 1995 1996 1997 WML 19" Clovessims Devoloplest Too Cr ,or gissiml Balsoce — COT Pool Collected 3,441 4,661 626 4 193 309 1: 3 139 7 013 5 gs :3 16'163 5.664 0 3.941 6 6.2403 0 6,557 4.883 7.229 7.39t V T,? 72, 0 5.347 N,18r VI C eveatioll takes Interest Earned 1 91 519 "A 367 740 0 1.05 6 1 0 3.477 3.33 1 0 3 820 0 3 537 0 3.917 0 4.31S 4,224t Ar,aw 2.011 3.336 COT used for Eibib Clattr CIS CDT used for. Arent CIS 1 8 2.964 2.523 2.470 2.714 2:737 3:348 3.313 3,273 3,74& 1.751 1.7top Y,4911 TOM dito COT Pool acid for Cap foodial 13.000 0 14.361 0 1 0 8 0 0 p p m Otto govenue Salretts t2posaffs Eedial Ralance, is COT Pool 1.120 1.309 7.113 11.163 4 1 mr, 930 I I 4 14.1721 14,1141 13,1901 14.2591 13.T461 14.7021 141,890 14.606?, 1#1 1AMP isq'sor, Additional Ishib Foods 1 Provided III Citj i 1111 0111 40111 CA '40 Cf iF 1 A A co c, H.{/p.p.m/..pp.WutapOHt\/ipW/Wptppt/taptattHtWNpnNNNnWWtHpat/tattttW/WHta/Hnppftbppnpn.p/pttNW/HtHatttltaH/an/.WWptat.NaWHNWtNNHt/tlplltfNa�aMNtaaIt�e�t m es, SwS add Ee/tNttlM NttAentp - r AAENI FtIiSE E ' i[CIIM SENt11NE Aad EtNiitttON QN1EN f11ASE IE 1i�7�. 111l1 I tin t 1186 EMT tMN U 1w :011.1111:JUY:JNL:M:S[►:KI:NOV: EEC:JAN:FEMMi.APi'M1'JUNMI.:Ad: SEF:KI'MVM, WHO: WA: Vt. MI:JUN:JUttAUM.SE►',KT.NOt:iE6UNKFEWMRAEY:M1jANJUk:AIM SEp:Y1L:NI11MCI JAWFUR(Ak AM FMJUMM;AMSE►IVT* IW1ON'. --------------------- ---»»._.._._..;».;...;».i--;.^:.......;._. A0I10111 YtA s VPALmks 1 t i . 1 1 1 1 1 I 1 1: 1 t 1 1 1 I I, t« I t t t r » t h t U. r I /tu.ssions s 4golUtlM1 htppnutuu........... i t i t 1 i s S t I t I f I I1 t. I, t t: t 1 I i L I S: R L I fi R tV IS: S' IOC Castrate 1 :W 1 : i: t 1 t I I I I I I t t « t City Caats"Wom{ta : t ........... i 1 i i i i T i t : i t: I t I i t t t fi fi t I: t t i « t. t I P t t le•rlop Coattail ball I I ............. ....... i 1 t I i i t i `s t t fi t I 1 R t t« I« t t t Y :i u L; v i, t, . i' It t- YSEA/lICOPA Ptslit NeLtioss:W/unpmuoH....Wt.u.Hu+nsn..W/pfsppptj. T t t t t S', I I I I. t « « I «« t' R R R i, R R t block MONO Approval •• : : i S I i i[ I i i I« I I I i t t««« R fi I fi fi It IL It In, d : t i I•' : : i i s t t : t I D L I I I t t It 11 E It 9« R :: R It . t ►WIIC AWO WIN I WMAL i :::: i : : i t f 6: t t t« I. I t I« t« It A fi< WAR ;n/paun........ipn......NH.HH..N•••••••••••a I t i t i i i 1:: t i f i I I t t I: « t F t « t t t 6« R A, t t k L' L NNxate F. E. C. hilroA{ : : put/../........t.fpH........a.alNfip.Hata j j S i 1: 1: C t t T t t t I fi I t t: R t fi t « t t R f Y U t t: Z t Utilities i::..........pN...NNHnp.......... u...ttW t t t t t t t fi t t t t t t fi I t Street Closwee..pro.n.H.................... ....NW.....psHa•• : t I I f t i t: t t t t « «« R R I L fi t. R t` R fi« lxorpwatt dartrrail A i i i i t is t i t L' E t t I C «« R fi t G t R R A ►eyle Bolt Stattoos I: I : :........ ..pN.{.......•• : 1 : t i I I t « t I& t R «« I fi t t t« t `a k t C k fi Setwe fretts A Ntviees :Wee./.. .....nN.. .........ut.......... tuN..pN : I : i i 1 : i : t t « t •"• L t L t: "w « « A t « U Y l6 t t t .' I T Rietials tills City Aaaalr:......NHp..at..W............NpiuH............ ..t 7 I S i t t. i Aeplattlag ;un:u; i i L I i t :: t fi L t t t« i fi fi I I« E««« t R R t«« « t: t Site Ilse : i:••/•n...W.........Np.................W• :::: t t: t 7 t I t 1 t t fi t F: fi t tt It t fi t IF R 6 b it t pr t VL t bil{ial Cadejua...H...... W................••...N.N.....: i t I L I S: « t t t « t R fi t t t fi« R eel It R t t R«« t' I: : Esavy Cope S:.a.......a..n..................... W.H•W... S t i t 1 t L I t t t r It t t 1' t«« p L. R • • titer I Sewr Ij...H/a......sn.N/p..a.... I.....pa»/.a.naa." 1 1 : I « t t t t i « t R I4 It b , t u: if fire SafetyI I :N.fWn......umpr....W....••••••.••..... i: 1 i i t is t : L i :. T I I t I: 1, t t t t t «. « t «. R d tS- Nittrit FrewvAtles S::••NHtau ............ .........H......•... i i: t i i t S t t t G t. t :' t I I. t « t i t fi t T I t k t« v Ei{ Ne.•ee : I:••.. ................... sp.m........... .. j j j j j i t t i t t t t I t « t t VU t It R t L R t Miter NO 1:...Ween................NNH........•••WH i i S t f I L i C t fi t t I t t t t t k t t it R t& t I Tr L I t S t 1 I l i i t t T t t I t t t t I;R it t t t R AREM t i 7 i i i i i t i I S t :' I L i t t 2 t t t t t « R i� t t • t v ff"IAt i i I i t I t t t i t i' A i. t t 1 I t t L fi Usage s vefifitatioa of : ::: i I I t I ': 1 1 t 1 I: 11 1 1 : t t t I t t t IIt t CSa•ealion leveloprst Ut I I .... .fn....HHfit.paat.a/i.. Arna t: t 1 I, t 1 1 j. GA lave►terst Strategy :. .... 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NiOT€S TO FINANCIAL PROJECTIONS r The finaricirig plans presented herein for Phase A and 11 are predieated j t 1 Ob several assumptions of a technical mature which May help illuminate the more salient aspects, as follows: 1. Our Convention Development Tax Collection assumptions are based on data obtained from City and MSEA sources as derived from the April 1985 CDT collections and a six year historical analysis of the month of April vis-a-vis the area's 3 annual Hotel occupancy, that the City of Miami's share of 1985's projected CDT collection should be between a minimum of $4.7 million and a maximum of $5.7 million, with a mean approximation of $5.2 million. We elected conservatively to use the minimum figure in our projections ($4,660,000), with l interest earned n the CDT fund at 9%. Use of the mean of $5.2 million has a dramatic positive effect on the financing. (See Exhibit 2, Section 111.) 2. The $1.6 million predevelopment advance from the City to the Decoma Venture, structured as an integral part of our No- vember 9, 1984 proposal to the MSEA, is included in the CDT cash flow analysis for years 1985 and 1986, although not explicitly detailed. Given tiie fact that the $1.6 million would be refunded to the City at bond sale in mid 1986, the cash flow impact is minimal. 3. Included in the general and administrative expenses of the arena and exhibition center are Decoma Venture opera- tion/management fees and charges which will be an integral part of the service management contract between the Decoma Venture affiliate and the MSEA and the City of Miami (in the case of exhibition center). In each facility the management fee is structured as follows: 4. a. $200,000 per year base fee with an annual increase (5% per year assumed). CPI b. Plus lob of gross revenues over $1.5 million per year. The above management compensation structure is within. the norms of such service management agreements for similar _ facilities across the country. In the arena pro forma, included in the "other" expenses item are allocations of $50,000 per year to a capital improvement ;- reserve fund with $150,000 in every fifth year. Such re- serves are necessary for the adequate capital replacement and major repairs for the arena. The exhibition center pro forma 85-63S OAS adt=ireases tlils same issue by virtue 'Of the WDA"Iyear �or►tinge'iicy. With regards to financing sources shown for both the exhibl" tion center and arena, we have the following additional obser- vations.. Arena a; Although we indicate the potential for City of Miami arena ticket sales taxes and concession sales taxes as possible financing sources, we have assumed such sources are non-existent at this point. Certainly, we wish to pursue with the City of Miami possible allocation of any such taxes to augment both the arena and exhibi- tion center financing provided by the City. b, As an Integral part of this business plan, Decoma Ven= ture will institute (with the City's help) what is known in many public arenas as a ticket surcharge, seat tax or other such ancillary charge identified on each ticket to create an operating reserve fund to recoup equity in- vestments by the private sector in such ventures. For example, a $0.50 per ticket (or seat) charge may be instituted for a given number of years (or indefinitely) to help create a return of equity capital source for the Decoma Venture's $9 million private investment in the arena, and secondarily, a repayment source for any UDAG funds. Certainly, should the funding and dis- bursement reach a point where the Decoma Venture's equity recoupment had been achieved, any excess funds could be allocated pro rata to the City of Miami and the Decoma Venture in accordance with their shares of net cash flow. The pro formas attached assume no such charge, for clarity. C. The revenue projections for the Biscayne Centrum Arena assume -- and this is a critical point -- an NBA fran- chise lease agreement with the arena during the 1988 season. Although we believe both the arena and exhibi- tion center are important for -Viami's future, one likely outgrowth of an election to pursue the exhibition center first would be the loss of NBA franchise revenues for several years. Exhibition Center a. The private capital be ces from utl norn—Decoma the entit entities,exhibition with' center are to be Decoma and the City working together to arrange and orchestrate any such fundings. 85r-638 y A City revenue seurcea to gupport the {adjustable Rate bethtind Not on the Exhibition Center tight include any 'Of the f011b — ing4 t ie of which are already ire eft stehte.' CDT available after debt service on CDT Bonds A and 13. Franchise Tax Utility Tax Half -Cent Sales flax intrastate Telephone Call Surcharge Vehicle Registration Tax Food and Beverage Tax The use of these or other city revenue sources would be subject to negotiation between the becoma Venture and the City of Miami. 7. Convention Development Tax ending balance in 1986 would be used as directed by the MSEA, the City Manager, and the City Commission to finance the purchase/option contract on select parcels of land for the exhibition center. 8. Inflation is assumed to be 5% per year. Revenues from both facilities increase at 6% per year through the fifth year of operation, then at 5% per year thereafter, reflecting management's ability to increase rental fees, etc., during the first few years as demand for the facilities increases. hh/m26 85-639 MINORITY ji,jv�STWENT MOCRAM i��4 As stipulated in Sectioh of the becoma Vehture's November 0, 19re Proposal to the Miami Sports and i=xhibiopportunity p ort n ty ini the gittayhe proposes to arrange for an investment opp Y Cehtrurn Arena for a group of Miami minority investors contingent Upon the final financing strategy selected by the City of Miami. Current negotiations with the MSEA and the City have further refined our November 9, 1984 proposal to incorporate Decoma Venture's private capital/equity investment in the arena in the form of a orted illion Industrial development bond (tax exempt financing supp and underwritten by the Decoma Venture principals). The structuring of both Decoma's equity and the minority equity investment will be further refined (according to IDB regulations, bond counsel, investment banker and other legal input) , but will be generally in accordance with the following: 1. The principals of Decoma Venture -- Barker Interests Limited, Unbeck Construction Corporation, Houston Sports Association and Affiliates -- will form a limited partnership with the minority investor group, to be called Biscayne Centrum Limited. This partnership shall be structured as follows: % Ownership General and Managing Decoma Venture 85% Partner: Limited Partners: Miami minority equity 15% investment group 2. Biscayne Centrum Limited will then arrange, and the general partners secure, the $9 million industrial developmentTo nducewith the City of Miami and capital market professionals. the general partners of the Biscayne Centrum Limited to underwrite the risk associated with the $9 million IDB, ti-le minority investment group must infuse risk capital into Biscayne Centrum Limited. 3. The anticipated 150 ownership allocation of the Limited Partner group shall be as follows: Black Investment Group (50%) Hispanic Investment Group (50%) Bob Simms 2.0% Dr. Clyde Pettaway 2.0% (to be named by 6/13) 3.5% "total Ownership 7.5% Alberto C. Cardenas 2.75% (to be named by 6/13) 2.75% (to be named by 6/13) 2. 00% Total Ownership 7.5% -- 13 bazy T10N V MINOp1TY INVESTMENT PROCRAM r As stipulated in Section of the Decoma Venture's Noveber O, 084 proposal to the Miami Sports and Exhibition Authority, the Venture proposes to arrange for an investment opportunity in the Biscayne Centrum !arena for a group of Miami minority investors contingent upon the final financing strategy selected by the City of Miami. Current negotiations with the MSEA and the City have further refined our November 9, 1984 proposal to incorporate Decoma Venture's private capital /equity investment in the arena in the form of a $9 million industrial development bond (tax exempt financing supported underwritten by the Decoma Venture principals). The structuring of both Decoma's equity and the minority equity investment will be further refined (according to IDS regulations, bond counsel, investment banker and other legal input) , but will be generally in accordance with the following: 1, The principals of Decoma Venture -- Harker interests Limited, Linbeck Construction Corporation, Houston Sports Association and Affiliates -- will form a limited partnership with the minority investor group, to be called Biscayne Centrum Limited. This partnership shall be structured as follows: % Ownership General and Managing Partner: Decoma Venture 85 Limited Partners: Miami minority equity 15`0 investment group 2. Biscayne Centrum Limited will then arrange, and the general z . partners secure, the $9 million industrial development bond with ' the City of Miami and capital market professionals. To induce the ' general partners of the Biscayne Centrum Limited to underwrite the risk associated with the $9 million IDB, the minority investment _ group must infuse risk capital into Biscayne Centrum Limited. 3. The anticipated 15 0 ownership allocation of the Limited Partner group shall be as follows: Black Investment Group (50$) Hispanic Investment Group (50$) Bob Simms 2.0$ Alberto C. Cardenas 2.75$ Dr. Clyde Pettaway 2.0`v (to be named k o be named by 6/13) 2.00% (to be named by 6/13) 3.5% 'fetal Ownership 7. 5% Total ownership 7. 5$ - -- - r g 85--639 F i �t �� ".. t_: ,fir •_`n�,,�,-sl aK�.[���=. z�, - P. �a a y,. ti, ".: , 14..E �..2z� � „nc r 9 r.- fi% K n-.'�, -� ,+�`� h-,. �� . t a km:."?i ixi"�' � x`: e`+� :� Y'ji '� ' h f_y:.". w�'%rvi. � �* $�",•¢ 4 f p.. � ?� t 3 q. ����'` �� ' i ,�, � v :+�, ..�> Si A 's' { �4�1�'�`?4i {'� �� rc•``,� '^it4.,�sS�+r+"l� t,u f4, t c� d v. X L•N �' ,h�?''z i t rk. � q7'.. "•`�i' :,,, �§ �� , x r �,' ''� u�kt .vf3 �„i.3�"5v,a "� . � 4 ' "�. �} t " r `'�c�. c ,y�'C'3't'�. }�. -"• r% �. S.'' ��... ,p �* � 3 ` ,� � 5� ,- j.�}3 ,a, �2��^YMA.`'"E � �i �?� � � 4 .'I.=��N,'L K'+M1_Z-,{ f. p,�t_ '^T x , t Y A?� Yy �: vGf'��P�P�. .� !. {1n`.f"w u�L �.y� r,^' "�r �.s A�" � "� t*-r •,a`.' X +r c. a � . .. ti•,'°r..� +�'"'i}fr�°"a. '''�s'c .�'• xu 1 �"�r` d+ �`�: x ...+z si y, ,. :.rr,+" k + `L a�,.r'»°.i-,Zzv+t��xA4.kr� ' �", 'y`.••, . .. mot• �� � ��'z°rs-�� � r 1 'equity i-hvestraent required; tatty i% of limited: partner nerti� p 4.iri Biscayne Centrum Limited Will require a capital co,trlbutiori o1` $331333, ob, All such capital contributions shall used by the partnership to assist ir► the arrangement of the Decoma ID8 and any letters of credit required. Ta capital contributions may be structured as follows: a, initial cash payment, due on the date arena construction begins to help defray predevelopment costs, 'b, second cash payment at project AIA Substantial Com- pletion. Decoma Venture, if necessary, shall advance this portion of the investor's capital to the partnership, secured by an interest bearing promissory note by the Investor to the Venture. Such promissory note and any accrued interest thereon shall be ratably extinguished by an annual priority distribution of 75% of net cash flow accruing to the investor's ownership interest until such time as the advance by Decoma Venture is 100% re- couped. The remaining 25% of cash flow would be di- rectly paid to the investor. After 100% recoupment of principal and interest by Decoma, the investor would begin receiving 1o0$ net cash flow pro rata. Due to the uncertainty with regards to future tax law revisions and the final approval of public financing for the Arena, the mechanics for the proposed capital contribution will be subject to definitive documentation. 5. The investment return profile for the minority equity investment group shall be structured as follows, subject to further review by bond counsel and the final financial program approved by the City of Miami: 15% pro rata distribution (net of financing charges; recoupment of additional equity financings, if any; and Deco - ma Venture affiliate management fees) of the following: Net distributable cash flow, tax benefits if applicable, net sale/refinancing proceeds if applicable. The objective of the managing general an equity investment partner of opportunity Biscayne Centrum with the inherent Limited risks and is to create rewards associated with similar investment opportunities cur- rently offered in the capital markets. Although it is unlikely, the Decoma Venture reserves the right to expand the investment group should final financing objectives or the decision of the general partners dictate such action. ddd/m26 85--639 a iN 1 11� 1 . .i r ^t Ch 4 ^t M tF Y Darton-Aschman Associates, Inc. 2901 West Busch Boulevard, Suite 1010 Tampa, Florida 38618 Tkansportation Ig3wts on Miami Central Business VisttiCt Biscayne Qentrum Sports and FKhibition Center 1. As evidP .ced in the development proposal submitted for the Biscayne Ceflttum Sports and Exhibition Center, these facilities are not peak hour traffic generators. The Sports Center stimulates travel on evenings and Weekends and the exhibition Center will be frequented by hotel guests already in the CBD area. Thus, these facilities will not overburden roads during weekday rush hours. Z. The Sports Center will draw from attendance all over South Florida --and on a relatively frequent basis. It will have the greatest impact on regional transportation facilities, while the exhibition center will draw from hotels already in the Central Miami area. Thus, the two facilities will attract visitors in a different manner compared to each other. 3. A conservative attendance estimate for the Sports Center of 150 typical annual events at 10,000 spectators per event (all events are not sold outOp would produce the following travel results: 1,500 Non-CBD transit riders 500 CBD transit riders 2,860 Autos (2.8 riders per car) The non-CBD transit rider would produce nearly $500,000 in additional fares for Metrotransit depending on parking policy at the stations. Since Metro - transit will operate evening and weekend hours this gain will not cost any additional out lay to the County. CBD transit users and some auto travelers will use the Metromover system to the Sports Center. This group will likewise not cause an increase in operations cost, but will add about $150,000 in Metromover revenue during non -peak use periods given the proposed .25 fare, and assuming a 1,000 autos park at points around the CBD and use Metromover to get to the Sports Center. Revenues to Metro Transit from the Exhibition Center will also be increased, but since the number of attendees is collectively considerably less than at the Sports Center over the course of the year, its impact will not be as great in terms of revenues. Perhaps $1-200,000 in fare revenue, primarily on the Metromover will be generated by the Exhibition Center. 8s-s3s • ; •Aartan-Afthman Assay s, ina. N 1 �eF'y ly h�i i z to i `Pp kf g" #4 { } t r! 441 At this years Miami brand prig an estimated ��� Of attendees Used letft transit# and hart an auto panty rate of 2.0 _ 2.0 persons per # Wig# showing the validity of !these assumptions# based on both national aM mal experience. S. As can be seen# on a typical evening# parking for the sports Center would require about 2#860 spaces. Given that the CSD has nearly 50#000 parking spaces# this auto parking demand can be easily accoffimblated. In fact many private lots are free and unattended at night# especially in the vicinity of the Sports Center State. Several observations emerge from this situation. A. Parkers will use free facilities and not pay for parking during most Sports Center events. This will be enhanced by the Metrotransit system making almost all parking in the CBD very convenient to use while attending a typical Sports Center function. B. Parking lots with charges will be by-passed in favor of free lots, since so many private lots are now free in the evening due to low demand. It is unlikely that a Sports Center oriented parking facility will pay for itself until a large enough volume of evening parkers is generated. C. In order to be successful, a new parking facility must have a high level of parking turn -over or high paying peak period day long packers. A parking facility near the Sports Center can only be justified if this constant level of demand is present. D. Several additional developments in the vicinity of the Sports and Exhibition Center are necessary to help justify a new parking facility in the area at this immediate time. These developments T would be: 1 - Expansion of the State government office complex and the elimination of discounted employee parking or the elimination of the surface parking lots. - Expansion of the Miami -Dade New World College complex eliminating some private parking lots and increasing evening enrollment. The completion of Rouse's Bayside complex increasing evening 85r-639, t Ilart6n•Asct man Assm s, Ine. and veekcnd parking demand aufftotent to gray for a parking facility, 6. Until the conditions outlined in 5-D above are met, a new parking structure is not economically viable just to serve Biscayne Centrum. This situation will also augment use of the Metromover system - as well as Metrorail - until free evening parking is eliminated or restricted; or, enough new developments in the area come into being to use a new parking facility. A recent New York Times article described the vastness of Miami's empty downtown parking lots at night. While the Biscayne Centrum will draw many people to the CBD at night, by itself, it will not overburden the parking supply to justify a special parking facility until even more downtown attractions are developed. Thus, it would be premature to develop a new parking facility in the area at this time and would be detrimental to Dietro- transit off-peak use until subsequent developments justifying parking are completed in the Miami CBD. RSA _'24 a `F C1i"1` Oft MIAMI, FLORIDA INTtR4PPICE MICMCPANDUM 66 rb. Honorable Mayor and Members WE June 5, 1'�55 Mt: of the City Commission suBAct 3-$5=563 Miami Sports and exhibition Authority Selection proceea AWA. Sergio Pereir pEFEAENCES: City Manager ENCLOSURES. • �`gf K1 a 3 ,y" i I l It is recommended that the City Commission approve the attached Resolution ratifying the Authority's selection of the Decoma Venture as the Developer of the convention/coliseum/ exhibition center, expediting the land acquisition process for the convention exhibition Center, the plan for implementation of the coliseum/arena and the application for an NBA franchise and authorizing the City Manager to finalize a detailed p tan expediting the convention exhibition center development flan. The Ordinance 9662 adopted by the Commission on July 28, 1983 authorizes the Miami Sports and Exhibition Authority to: Acquire, construct, improve, extend, enlarge, remodel, repair, equip, maintain and operate one or more exhibition halls, arenas, convention centers, coliseums, auditoriums and/or athletic stadiums for the exhibition of events... which promote sports, convention and exhibitions to the greatest extent feasible. The Authority is also required to endeavor to attract professional sports franchises to utilize facilities in the City. In furtherance of these objectives, on March 29, 1985, after extensive presentations from three national developers and thorough questioning from the Authority's Technical Ad Hoc Advisory Committee, the Authority selected The Decoma Venture as the successful proposer, receiving the initial right to negotiate the development contract. The Authority also designated the Chairman, Executive Director and staff attorney and/or their designee(s) to negotiate with The Decoma Venture with assistance of the City staff, consultants,and other professionals and to introduce the first ranked development team to the City Commission for review of the development of the proposal and discussion of items which will require City approval and implementation. 0 It is recommended that the City Commission approve the attached Resolution ratifying the Authority's selection of the Decoma Venture as the Developer of the convention/coliseum/ exhibition center, expediting the land acquisition process for the convention exhibition Center, the plan for implementation of the coliseum/arena and the application for an NBA franchise and authorizing the City Manager to finalize a detailed p tan expediting the convention exhibition center development flan. The Ordinance 9662 adopted by the Commission on July 28, 1983 authorizes the Miami Sports and Exhibition Authority to: Acquire, construct, improve, extend, enlarge, remodel, repair, equip, maintain and operate one or more exhibition halls, arenas, convention centers, coliseums, auditoriums and/or athletic stadiums for the exhibition of events... which promote sports, convention and exhibitions to the greatest extent feasible. The Authority is also required to endeavor to attract professional sports franchises to utilize facilities in the City. In furtherance of these objectives, on March 29, 1985, after extensive presentations from three national developers and thorough questioning from the Authority's Technical Ad Hoc Advisory Committee, the Authority selected The Decoma Venture as the successful proposer, receiving the initial right to negotiate the development contract. The Authority also designated the Chairman, Executive Director and staff attorney and/or their designee(s) to negotiate with The Decoma Venture with assistance of the City staff, consultants,and other professionals and to introduce the first ranked development team to the City Commission for review of the development of the proposal and discussion of items which will require City approval and implementation. 0 e 0 10- �i r :E r Y' Tad Y r s5 Y .+i t p � IV y� 4 ' ;I �x .. �3 Mi onorable Mayor and Members Of the City Ct MMa".88i0 i ,June 5 ► 1985 Page 2 The Decoma Venture proposal provides the most realistic financing plan because it maximizes private investment and minimizes the public sector risk. They are the most experienced development team in terms of financing, construction, planning and sports and exhibition facility management. Their project will directly reinforce other City related development such as Qvertown/Park West and the Bayside Project. They offer the most detailed proposal for meaningful minority participation. Finally, the project strengthens the application for a Nation9'1 Basketball Association franchise filed on behalf of the City of Miami and offers the most realistic proposal for expediting the completion of the convention/exhibition center. It is therefore recommended that the City Commission approve the attached Resolution ratifying the Authority'selection of the Decoma Venture as the Developer of the convention/coliseum/exhi- bition center, expediting the land acquisition process for the convention/exhibition center and the plan for implementation of the coliseum/arena. Also, endorsing the application for an NBA franchise and authorizing the City Manager to finalize a detailed plan for expediting the convention/exhibition center development plan. SP/KL/la t.1" OP MIAMI. FLORIDA ors 04ftrf PPICE MEMORANDUM Ilia Honorable Mayor and melfi ars of the City Connia§ oh t�wl: Sergio Pereira City Manager bAtt: bustiftf: S.E. overtown/Park West Developer selection Parcel 44--becoma Venture Public Hearing 300 p.m. tAtNett: tune 13 ► 13g5 tN t61;UAt6; ( 1 ) It is recommended that the City Commission approve the attached resolution selecting a developer for Parcel 44 of the Southeast Oyertown/Park West Project pursuant to pro- cedures established for Unified Development Projects (UDPs) and to authorize the City Manager to initiate the preparation of dis- position agreements with said developers. The recommended development firm for Parcel 44 is The Decoma Venture. On July 31, 1984, the Miami City Commission approved Resolution No. 84-893 authorizing the issuance of a request for proposals for a Unified Development Project (UDP) for the Southeast Over- town/Park West Phase I Redevelopment Area, establishing a Selec- tion Review Committee, and appointing Touche Ross and Company to analyze the financial feasibility of the proposals. On December 14, 1984, the City of Miami received 20 proposals from nine developers for Phase I development. The Selection Review Committee met on January 2, 8, 22, 31, and February 13, 1985, to review the proposals. on February 13th the committee report was submitted to the Manager for review. Touche Ross & Co. completed their financial evaluation of competing redevel- opment proposals and submitted their report on January 30, 1985. On April 11, 1985, the City Commission approved the selection of developers for seven of the nine parcels in the Phase I redevel- opment area (Resolution No. 85-393), and on May 9, 1985, selected J 85-639 'a?t'" -. t f S , Tr Y t .ba.l 62 OON 1- !1 <0, l �s4s Mayor wid C-isai the devel open for Parcel 37f esolut on No. 85-478), Parcel 44 was held in abeyance until June when additional documentation would be available concerning the sports arena. The selection of developers for Phase 1 redevelopment is the cul- Mination of over two years of work by the City with the assis- tance of Dade County. The Sports and Exhibition Authority has selected Decoma Venture as the recommended developer for a Convention/Coliseum/Exhibition Hall Complex. The Decoma Venture proposal calls for the development of this facility between N.E. 2nd Avenue, N.W. 1st Avenue, North 6th Street and North 8th Streets. The proposal calls for the utilization of Parcel 44 for a component of the complex. The location of such a facility within this area would greatly enhance the overall project and, with proper design controls, would be compatible with the proposed residential community to be developed. This public facility, along with Bayside and the Metrorail stations, will assist in creating a market for resi- dential development, remove blighted conditions within the area, and create a link between the commercial core area of downtown and the proposed Southeast Overtown/Park West residential community. The emergence of the Southeast Overtown/Park West Community Rede- velopment Program creates an opportunity for the development of a variety of land uses within the 200-acre redevelopment area. The development proposals already selected by the City Commission for eight parcels call for the development of 1,976 residential units and 239,670 sq.ft. of commercial space over the next five years. An additional 426 residential units as proposed by the circa/ Barnes s/Sawyer development team provides a viable alter- native development of Parcel 44 and should be considered if the Commission determines not to go forth with the Decoma proposal. Tv SS-639 g'1. � tine H c E mayor and Chi s s ion m 3; 1. Puget $ackgrdund Phase 1 of this project is focused on publio investMOht adjacent to the Overtown Metrorail Station and along the gth Street Mall. A nine -block Transit Station Impact Area has been designated as the location where public investment will be concentrated. This has been approved by the Miami City commission (Resolution No. 83-972) and the Dade County Commission (Resolution No. R-1006-84). This area was selected due to its strategic location adjacent to the Overtown Metrorail Station and the Downtown Gov- ernment Center. Redevelopment within this area will maximize benefits to both the Park West and Overtown portions of the pro- ject area and leverage previous capital improvement expenditures plus committed public funds (Urban Initiatives Project). There are feasible development opportunities along the nine blocks surrounding the proposed 9th Street Mall and the Overtown Metrorail Station. Market forecasts indicate that this nine - block area is capable of supporting the development of approxi- mately 2,000 residential units and 250,000 sq.ft. of commercial space, to be phased in over a five-year period. The development program will be geared for moderate -income housing for families with an income range of $15,000 to $50,000. The development mix is predicated upon the identified market potential for the area (Hammer, Siler, George Associates analysis). II. Solicitation of Developers A concerted effort has been made to promote and market the South- east Overtown/Park West project area since the establishment of a project office in September 1982. A significant effort was made to attract developers locally, nationally, and internationally. 85--639 41, Mayor anti 'Ciaa itch a4m Major r►arketing activities have included: sr Distribution of 900 marketing folders nat:iOnwic a to potential developers, investors, etc, Distribution of 300 copies of the Phase 1 Rgquest For Proposals nationwide. _= Publication of two editions of Progress, the Southeast Overtown/Park West newsletter, distribution1,500 and of 3,000 respectively. Preparation of numerous articles and press releases con- cerning the project. Information concerning the project has been printed in local and national publications. Hiring of a marketing consultant to assist in preparing a market strategy for the project. --- Sponsoring a developers conference on April 30, 1984, at the James L. Knight International Conference Center, attended by more than 200 people; and a presubmission conference held on August 30, 1984, with 60 persons in attendance. -- Appearances on local television, radio broadcasts, and before civic and business groups to promote the project. -- Distribution of over 1,000 flyers nationally promoting the project and development opportunities. Placed advertise- ments in the Wall Street Journal, the National Real Estate Investor Magazine and the local newspapers. -- Hosting a conference/workshop for minority contractors on August 9, 1984, at the City Administration Building. SS-639 .. F .S, Prnzrr •`iY .}„:+ t p r> '.'S5 .. [ 7 OOS W ft's m I11. Res-onse to the A0 9t for proposalb Written proposals were submitted by the E0110wiftg nine development teams: Affordable Housing Corporation 666 llth Street N.W., Suite 1103 Washington, D.C. 20005-4542 Can American Realty Corporation 1117 Marquette Avenue, Suite 200 Minneapolis, MN 55403-2457 Circa/Barness/Sawyer 628 W. Rittenhouse Street Philadelphia, PA 19144 Cruz Development Company 10 Fairway Street Mattapan, MA 02126 The Decoma Venture Suite 700 1110 Brickell Avenue Miami, FL 33131 Indian River Investments II, Ltd, 1023 N.W. Third Avenue Miami, FL 33136 New Washington Heights Community Development Conference, Inc. Culmer/Overtown Neighborhood Service Center 1600 N.W. 3rd Avenue Miami, FL 33136 Stocks Construction Florida 299 Alhambra Circle, Suite 512 Coral Gables, FL 33134 Walter Sweeting & Associates, Inc. 5825 Sunset Drive, Suite 210 Miami, FL 33143 85-639 9'�4 y, A "•?�: nx^5. �1.'_rj4'S t Y''.M{.8+.�4'( t(S: r'': ,�-G!<.�- 1..' � •`i a • � �l°€'v'��.L,ta� ; S � � i. 3 e s Mayer &nd c6ltiltlisai*h S�NiiAR1 OF POOPOSALS FOR POW t 09VELOPNENT Residential Commercial parcel Number Name Units Sq.Ft. 24 (a) Cruz Development 386 R 386 R 35350 30.000 15.000 15.000 (b) Stocks Construction R (c) Can -American Realty Corp. 25 (a) Cruz Development 199 R 15.87 36 (a) Cruz Development 1 C 2212C 25.000 20.000 (b) Affordable Housing Corp. 31 (a) Cruz Development 386 R R 30.000350 30.000 (b) Can -American Realty Corp. 44 (a) Affordable Housing Corp. 304 C C 20.000248 (b) Walter Sweeting 6 Assoc. Inc./ Angles, Esteban (joint venture) 426 C (c) Circa/Barness/Sawyer -- Centrum Arena -- (d) Decoma Venture 45 (a) Affordable liousing Corp. 46 C 225 C 33.800 (b) Circa/Barness/Sawyer 46 (a) Indian River Investments I1 Ltd. 152 C 484•C -" 20.000• (b) Affordable Housing Corp. Affordable Housing Corp. 150 R 20.000' T(b)(a)484'C Circa/Barness/Sawyer 142 C 292 41.800 56 (a) Circa/Barness/Sawyer 91 R 60 C 151 63.200 (b) New Washington Heights ._ 200 Room Hotel Community Development Conference 1/30/85 *Combination of parcels 55 and 46 R Rental C Condominium SS-639 t - r -4 ; F�. { S Y . tom, t t J.. 1'C'W mayor and C-owisslaft ms' a IV$ selection .�R"10—w q4q ►1t'Li-e On PebruatY 13, 1985 r the phase 1 Selection Review Coi"[mitteecsub on mitted their report to the [city mote attachment) . The Review Coriimittee held interviews with each of the development teams for each of their submissions (20 interviews) and exten= a vely reviewed each of the proposals. Parcel No. 24 Developer: Crux Development Company uses Proposed: 386 Rental Units 30.000 Sq.Ft. Commercial Space 425 Parking Spaces Parcel No. Developer: Cruz Development Company -A Uses Proposed: 199 Rental Units 15.875 Sq.Ft. Commercial Space 220 Parking Spaces Parcel No. 36 Developer: Cruz Development Coapany Uses Proposed: 221 Condominium Units 25.000 Sq.Ft. Commercial Space 248 Parking Spaces Parcel No. 37: A tie. with two developers equally ranked. Developers Can -American Realty Corporation Cruz Development Company Uses Proposed: Can -Am: 350 Rental Units 30,000 Sq.Ft. Coarnercial space 395 Parking Spaces Cruz: 386 Rental Units 30.000 Sq.Ft. Commercial Space 425 Parking spaces Parcei No. 44: Housing Use Developer: Circa/ 8arness/Sawyer Uses Proposed: 426 Condominium Units 430 Parking Spaces Sports Arena Use Developer: Uses Proposed: Become Venture Sports Arena (See Decoma Proposal) SS-639 --ti s A11,111r 41 Mayor and WMigI;lOt r►j§a W Pbtrtbt NeiAi�reiepi<r: circa/8arness/Sawyer list Pr6p6tah 228 tondominium Units 33,800 Sq.Ft. Commercial 215 Parking Spaces N6. 1i5 OeYll6pert Indian River Investments it, Ltd. per Utet PI`Oposed: 152 Condominium Units 152 Parking Spaces Pereel N6. 88 Developer: Circa/Berne- Sawyer Uses Proposed: 150 Rental Units 142 Condominium Units 41,800 Sq.Ft. Commercial 425 Parking Spaces Parcel No.b Housing Use Developer: Circa/Berness/Sawyer Uses Proposed: 91 Rental Units 60 Condominium Units 63,200 Sq.Ft. Commercial Space 215 Parking Spaces Parcel No. 56 Hotel Use Developer: No recommended developer. ,U E t-AL1 Al 17 i+ 1 36 37 .F ....... ..! 18 45 44 .. 'L L. ti.' SOUTHEAST 01/EFiTONiN/PARK WESTV/ i w,wow u:.crr a w .. . t�?:�•ww.u. ccr :°S 8S-639 %�: z 3 rr K v 3+ *--t c. �. t•^ p. :E $rk ;4 '�;-; t,�•' �n ': �.x�.' � e ° 3j s;.w`5 ; i�`"�'�r4 t .. f 1C :�, '� w„..�+ f. -; r ,. -o- r-v:. � - �:� " �'j,, reia�� .a+7're' ty ' d { TS W `� �� f `�T� fe. �'fi y � � ��X �• '� ry - �£ EP l.+v. ��T � y M _ f J1�1 # �,. 1 N '�a` i '��*l, s,,st .> �z's'^r-y`,��, a •.�r� Y . �Y�" ,^et�.;..�.`r.iM4. r. "�,, >�' na'�. 1�4. r�."`,f 1 "y. 3Z9 ".� ^x.f%•+:5frt,''}?d'. °p"�^" 6>� ,i�,�e ? ;i N ;VW $rr,t1 ..nF`'^�F S1 ., Yif .. r, j;I 6`.R +� Nj» V2 .rz .., KIT a '. `xra.. ,� .. 4 r�,y� '4 SH.r �� � � � �. • +�T�., x. ..# c 7 i � ��� :x �"n s�%+C_ f° w t u:�, �,, a. u✓ : r � � a7 f • t OONi myor and emolasich sags The committee evaluated developers in terms of their abilities to develop individual parcels for which they submitted proposals, based only upon the evaluation criteria established by the City Commission and included in the RFP. However, since the results of the evaluations and rankings include recommendations for two developers for multiple parcels, it was recommended that the City Manager further evaluate the developers' capabilities for doing these multiple parcels before making final recommendations to the City Commission. Touche Moss & Co. has prepared this analysis and has concluded that these firms have the financial capability to undertake multi -parcel development (note attachment). The committee has attached to its recommendations some important considerations that they believe are crucial to a successful pro- ject implementation: 1.. The financing data submitted with the recommended Phase I development proposals show that most of the projects are not feasible without additional public subsidies and special financing programs. It is, therefore, important that the City move quickly to conclude the selection process and help the developers secure this assistance. Federal budget deci- sions and 1985 tax legislation may reduce or eliminate some of these subsidies in the very near future. Even though federal funding for Urban Development Action Grant (UDAG) projects is in place until the end of the cur- rent federal budget year (and appears to stand a reasonable chance of being continued in the next year), UDAG assistance is not assured. Miami does not rank high under the current UDAG eligibility criteria relating to distress and impaction, which favors older northeastern industrial cities. Congress : is now considering changes in the eligibility formulas that might help Miami's standing, and those changes could be in effect by the time our project application is reviewed. 2. The committee sees a need for the City to act as a master coordinator for the timing, phasing, and marketing of devel- opment on individual parcels. This is important for the creation of an initial critical mass to give the area market appeal to the first prospective renters and homebuyers. Mas- ter coordination can also insure that initial construction will not be concentrated in a single location in the Phase I area but will occur on a more balanced basis on several par - eels. Adjustments in the stated construction timetables for the individual parcels may need to be made. 3. The City must also assume an active role in insuring design compatibility, particularly among those adjacent parcels undertaken by different developers. r � 85-639 -.i � _ ��rr'� � �`¢•.,�' ��" rti � �� .gix. ?� �, 3 #. re'f t z °• 4� �' ,, ,t-f �'+i",+� f �. ' 'z .�c � v . +' - % s'. #- .;� S a5; gP : r '' ' k -• ''� ,,1i� Yt w's� s T�:� �,i �� ,�� is �' l �L ..; ryk� .� as '� I' .. ...,.. -_. �`� l* "Sr+"�.. ¢z � �sz ,ryZ} . +s .r" t f �-�,•. >} i D n + , ;,, i" ...,°: � ,�"'Sr _ �, ,... . ,, .v f .-: a;4�' G{,�,z,`y�",.h� Z`e:-�"+x�ri z. �.#�,rt�f,.,k$za.�l zxN ,fir 5i j.XS" n +,a'r Pf7�.� ✓`i�S,_F+.a�� ,� -,f+t �..!t�KK�?k. �x.�., -;$:` � r!'zi" r r. `y�'�vi�.' s� rt. ^MsY�� `� ^.�'�`` �' �i,t`t r' � a 1?�:sr µ s .'?s`a�.; u+;,:• t. 1��&K �' + '�'t ,. �f :� ..,; t+'aft•+�'a �I �"�� 'sf�rJ�fi�3 � ��� ,&�� r..e.a i t�h's53,�fk � .a,F' �e r'. rc _ :: r "��� :, , ,ti t ,.• �. �,,. V: �':�' �� z �'�- .z�ar�Y'ij,tr � t 4 :� ,F e.. n 3 �7 x'Y U ate '�kp1i � ?, �, d f � � t ,+ :..E` y�'�. 5 ¢dam"3i�".�'�v,,`�.rJli'1�1 y. �"*r,. �� � •S F 1 � E_ i fi c 441 s '* �rLra� t� 9Td_ fit\ t .r' Mayor and p is s s 16fi -10- vo pinancial Anal A a 6uche Ross Co* prepared an independent financial analysis Of each of the 20 development proposals, pursuant to procedures established for Unified Development Projects, which was utililted by the Selection Review committee in their review. The Touche Moss & Co. analysis consisted of an evaluation of the developers' financial strength as well as the project proposals. The ele- ments reviewed include: �= the viability of the development teams and their ability to secure financing and maintain prices at proposed levels; the viability of the proposed financing strategies; the viability of the proposed projects; and the short- and long-range economic return to the City* Based on this analysis# the following parcel ranting was established: TOUCHE ROSS 6 CO. RANKING BY PARCEL PARCEL FIRST SECOND THIRD 024 Cruz Can -Am Stocks (96) (88) (82) 025 Cruz (97) t36 Cruz Affordable (97) (57) #37 Cruz Can -AN (94) (94) *i44 C/B/S Decoma Affordable (95) (55) (55) #45 C/B/S Affordable (90) (55) #46 I.River Affordable (73) (58) #55 C/B/S Affordable (94) (55) t56 C/B/S New Wash. (97) (45) FOURTH W.Sweetinq (46) * A more defined financial plan has been provided by The Decoma Venture to the Sports and Exhibition Authority. 85-638 i i y �X n ; Mayor and 401110 VI, oeyeloper Recommendations Tatting into consideration the tecOffnendatid" of Touahe Rosa c0.r a certified public accounting firm' and the Phase � Seidedded Lion Review committee, the following developer is reconnOn for redevelopment of Parcel 44, pursuant to the procedures for Unified Development Projects, as set forth in the city of Miami Charter Section 53(c). Pagcel_No._44: (1) Decoma 'Venture (2) circa%RarnessJSawyer 85-639