HomeMy WebLinkAboutM-84-0635Y
Or
DATE: May 99r 1984
Ta: Howard Gary
City Manager
SUBJECT: OLYMPIA BUILDING r
REDEVELOPMENT PROGRAM'
FROM: Roger M. Carcktr
Director
Department e n
Background
During the past* year the need to redevelop the Olympia Building utilizing a
Unified Development procedure has been discussed with members of the City
staff and the Law Department. A Request for Proposals was prepared in July,
1983. Due to staff commitments to Bayside, the Exhibition Complex, Park
West/Overtown, and Watson Island the Request for Proposals was not submitted
to the City Commission. The proposal envisioned an "entertainment center"
which would have replaced the retail stores with a complex of restaurants.
Ticket packages including dinner wahshow at Gusman Cultural Center would
d
have been marketed through the downtown
During the past month the tenants of the Olympia Building requested a meeting
with the Off —Street 'Parking Board to discuss alternatives to allow them to
stay in the building. Many of the tenants have been in the building in
excess of thirty years. An alternate proposal has been submitted by the
tenants and reviewed by the GusgarecommendedAdvisory
approval off theee and concept by the
Off —
Street Parking Board. ft th group
City Manager's office and the City Commission.
Analysis
g presently
The Olympia Buildiny contains 31,927 rentable square feet. Of this
square feet is rented by the City of Miami at an
space approximately 15,849
average rental of $10.66 per square foot per year which is below the market
rate for similar space. The balance of space is rented by various offices
and retail stores some of which have leases which run as much as six more
years. The City's leases which include the Department of Management &
Budget, Internal Audit, Economic Development, and Public Information will be
in effect for approximately two more years.
The proposal made and signed by all tenants is that they Will increase their
rent effective July 1, 1984 by $75,000 annually if the City increases its
rent by a similar amount. Should this occur a total of $150,000 in
additional rental would be collected to repay a i1,000,000 loan obtained from
a local bank to renovate the Olympia Building. The loan would be used to
replace the elevators, install central air conditioning, renovate the
building facade including replacing the marquee to its original condition and
modernizing all public spaces including the lobby. The retail stores and
private offices would be required to modernize their exteriors as well as
interior spaces. The net financial implication for the City would be that
the 0 wouldaincreaseBuilding
thewould
City's perfully
squareized at a cost foot f foot rental from$10.66 tofi$15a39�.
which
MOT/ON
84-635. .