HomeMy WebLinkAboutItem #07 - Discussion Itemj
-Ai Richard Fosmoen
City Manager
rROSS• Morris T. ufmann
Asst to th City Manager
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PURPOSE
October 16, 1980 'iL.r:
-r Status Report to the Committee of
Whole on the Development of the
Proposed Downtown Government Center
Parking Facility Project, Meeting c
"'., ,.,: ;4�.October 30, 1980
Draft Reports
Status Report to the Committee of the Whole
on the development of the proposed Downtown
Government Center Park ng Facility project.
Presentation includes two draft feasibility
studies which indicate that there is a up blic
need and that the project is economically
feasible. Strategy and schedule are presented
to complete the development process.
t
The purpose of this presentation is to inform the City Commission,
Committee of the Whole, on the progress made to date in the develop-
ment of the proposed Downtown Government Center Parking facility
Project.
BACKGROUND
On January 24, 1980, by Resolution 80-49, the City Commission
designated parking facilities projects as Category B. On April 24,
1980, by Resolution No. 80-303, the City Commission approved the City
Manager's selection of six firms to provide professional services for
the planning, study, design and construction of proposed parking
structures and allocated $30,000 to undertake the feasibility of
developing a parking facility in the Downtown Government Center. The
City Manager negotiated an agreement with Barton-Aschffian Associates,
Inc., for the feasibility aspect of the development. 'On May-22, 1980,
the City Commission, by Resolution No. 80-375, approved the agreement
and authorized the City Manager to execute it.
IN
Since that time Barton-Aschman has investigated three potential sites
in the Downtown Government Centex and submitted preliminary studies to
the City, the Off -Street Parking Authority and the Downtown Development
Authority for information and comments. Tile attached report, entitled
Draft, Feasibility Analysis, P.roE2f2d Parking Structure Downtown
Government Center, Miami, Flo icla, dcltcd October, 1980, nrepar^A 1,��
Barton-Aschman indicates that EEere will be a financially fea
undertaking.
Richard Fosmoen
October 16, 1980
Page 2
In the course of the investigation, it became evident that additional
revenues would be required to improve the coverage ratio if revenue
bonds were to be used in financing the project., One means of
generating new revenues is to incorporate retail space into the
facility. It was decided to engage a real estate management firm to
test this potential.
Accordingly, on August 29, 1980, the City solicited proposals,from
over 40 real estate management firms to provide professional services
in determining the feasibility of incorporating mixed land rises in the
proposed parking facility. Some eleven firms expressed interest in
the project. A selection committee representing the City Manager, the
Law Department, the Finance Department, the Planning Department, the
Off -Street Parking Authority and the Downtown Development Authority
reviewed the qualifications of the respondents and recommended The
Allen Morris Company, Inc., for the task. On September 16, 1980, the
City Manager entered into a professional services agreement with The
Allen Morris Company for such services. Since that time this firm has
investigated the retail space demand and feasibility for the project.
The firm's report, attached hereto, entitled Feasibility Study for
Incorporating Retail Space in the Proposed Downtown Government Center
Parking Facility for City of Miami, dated October 17, 1980, indicates
that there will be a demand for approximately 20,000 square feet of
retail space and that this space will generate revenues over debt
services.
Also attached is Appendix "A", prepared by the City, which combines
the financial proformas developed by the two consulting firms.
PROPOSED STRATEGY AND SCHEDULING
In view of the favorable aspects for proceeding with the development
of the project, the City Manager proposes the .following course of
action.
1. Interim Funding
The City Manager proposes that an amount of $115,000 be transferred
from the Capital Improvement Fund to the Parking Capital Projects Fund,
on a loan basis, to obtain professional design and financial consulting
services necessary to sell revenue bonds which will be used to complete
the development of the project. This matter is on the Commission
Meeting Agenda as Amendment No. 22 to Ordinance No. 2019.
Richard Fosmoen
October 16, 1980
Page 3
2. Project Development Funding
In order to finance the development of the project through the sale
of revenue bonds, the City Manager proposes to engage the services of
a financial consulting firm that has experience in assisting
municipalities on this type of bonding.
on advice from the City's bond counsel, Brown, wood, avey, Mitchell &
Petty, the City advertised in the Daily Bond Buyer on -September 22,
1980, for interested firms to serve as City's financial consultant.
Thirteen firms replied. A selection committee, consisting of the same
members indicated above for selecting a real estate management firm,
reviewed the qualifications of the respondents and recommended three r
firms in rank order to the City Manager.
The City Manager, by a companion resolution to the above -mentioned
ordinance, proposes to negotiate an agreement for financial consulting
services. The funds requested in the amount of $15,000, will cover
initial expenses for services up to the point of closing on the bond
sale.
3. Project Design
In order to determine project construction costs more definitively than
the estimated cost shown in the feasibility reports, the City Manager
proposes to engage an architectural/engineering firm, previously
selected in principle under Resolution No. 80-303, dated April 240 1980,
to proceed with the design concept and design development phases at
which point a budget estimate will be produced. The budget estimate
will then be used to determine the dollar amount required in the bond
sale.
It is estimated that $100,000 will be required to obtain the professional
design services and ancillary services, such as soil borings, surveys
and the like,. At the time the consultant produces the budget estimate
the City will have two options. The first will be tocontinuethe
professional services agreement and produce contract documents, paying
for such services in a similar manner as proposed herein. The second
will be to suspend work until after the bond sale and then resume work
using proceeds from the bond sale to pay for the professional services.
The second option will effectively increase construction costs because
of inflation during the delay.
4. Project Development Schedule
Attached hereto as Appendix "B" is a Project Development Schedule
showing major activities, events and responsibilities for completing
the project. As indicated, the process aims for beneficial occupancy
on or about February 1982.
MIK/mim
0
APPENDIX "A"
TABLE I
ESTIMATED DEVELOPMENT COSTS (PRELIMINARY)
0
Item
1. Construction Costs:
Parking Facility (1) $4,784,000
Retail Space (2) 220,000
2. Financing Costs (3)
3. Bond Issue Amount
4. Level Debt Payment (4)
Development Costs
k
$ • 5, 004 ,.000
1,668,000
6,672,000
688,000
NOTES: f
(1) Based on Barton-Aschman's Report, dated October 1980,
Table 11, with construction bid in 1981
(2) Based on The Allen Morris Company's Report, dated
October 17, 1980, Ts'::1».bi.t 1.4 in the construction bid
in 1981
(3) Covers capitalized interest for two years; underwr,iter's
discount (21.�); legal, financing and issuance expenses;
and contingencies. Estimated to equal 25 percent of
bond issue
(4) Based on 28 years term at 9.5 percent, rounded to
nearest $1.00.
A -I
a
APPENDIX "A"
TABLE II
INCOME
ANALYSIS (PRELIMINARY)
(1)
GROSS
NET
YEAR
GROSS
M & O
NET D S
COVERAGE
COVERAGE
1983
1028.8
358.6
670.2 680.0
1.50
0.97 -
i98-3
ilo-9.1
376.4
812.7 688.0
1.73
1.18
_985
1259.L
401.4
857.7 688.0
1.83
1.25
19S6
1381.4
433.0
948.4 688.0
2.01
1.38
1987
185.2
438.9
1021.3 688.0
2.16
1.48
1938
1570.9
494.6
1076.3 688.0
2.28
1.56
Note
10 (1) Based on Barton-Aschman's report, Table 15 and the Allen Morris Company's
Report, 2-hi bit 15
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DO."VNTOWN GOVERNMENT CENTER PARKING FACILITY DEVELOPMENT SCHEDULE
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