Loading...
HomeMy WebLinkAboutSubmittal-Miami-Dade County Memo• Date: To: Honorable Chairman Bruno A. Barreiro and Members, Board of County Commissioners From: George M. Burgess County Manager Subject: Building Better Communities General Obligation Bond Program — Execution of GOB Grant Agreements with the Miami Art Museum of Dade County Association, Inc. (MAM), GOB Project No. 296; and the Museum of Science, Inc. (MSM), GOB Project -No. 297; and a Memorandum of Understanding among Miami -Dade County, the City of Miami, the Miami Sports and Exhibition Authority, MAM, MSM and the Historical Association of South Florida, Inc. (HASF) Memorandum Recommendation It is recommended that the Board of County Commissioners (Board) adopt the attached resolution approving the terms of and authorizing the Mayor or his designee to execute separate Building Better Communities General Obligation Bond Program (the "BBC GOB Program") grant agreements by and between the County and the Miami Art Museum of Dade County Association, Inc., (MAM), a Florida not - for -profit, for GOB Project No. 296, in the amount of $235,000 (Exhibit A to the resolution) and the Museum of Science, Inc. (MSM), a Florida not -for -profit, for GOB Project No. 297, in the amount of $3.3 million (Exhibit B to the resolution) to fund the initial design and site engineering -related expenses associated with the development of the two museums at Museum Park (aka Bicentennial Park). The difference between the proposed Grant Agreements and the standard BBC GOB Program grant agreement is the deletion that grantees demonstrate site control as a pre -condition to receiving this first installment of BBC GOB Program funds. The funding will come from the first BBC GOB Program bond sale. In addition, the attached resolution approves the terms of and authorizes the Mayor or his designee to execute a Memorandum of Understanding (MOU) (Exhibit C to the resolution) by and among Miami -Dade County, the City of Miami (the "City"), the Miami Sports and Exhibition Authority (MSEA)I MAM, MSM and HASF setting out certain responsibilities among the parties involved in the implementation of Museum Park. Scope Although the MAM and the MSM/HASF museums will be located in County Commission District 3, these projects will have countywide impact. Fiscal Impact/Funding Source The BBC GOB Program has an allocation of $100 million for MAM and $175 million for MSM/HASF. Each museum will be responsible for any cost overruns to its respective project. Furthermore, the complementary work by the City to develop the Museum Park will be funded from $68 million generated by the Omni Community Redevelopment Agency (CRA), subject to the expansion of the CRA boundaries in accordance with the Global Agreement recently approved by both the Board and the City Commission. Track Record/Monitor SUBMITTED INTO THE PUBLIC RECORD FOR ITEMz ON Submkbed Into the pub Tecord in connection wi item :'?E•2� eon 09.0- t The two museums are not -for -profits in good standing with Miami -Dade County. Each mei40 IlYahomps responsible for the implementation of its project with oversight provided by the Miami -Dade Department o JtY C i Cultural Affairs. The Office of Capital Improvements will be the monitoring agency. Background On November 2, 2004 voters approved eight ballot questions authorizing the issuance of general obligation bonds to fund more than 300 capital improvements throughout the County over the next 15 to 18 years. GOB Project No. 296, included a total allocation of $100 million to fund the development of a new MAM and GOB Project No. 297 included an allocation of $175 million to fund the development of a new MSM/HASF, all to be built on City -owned Bicentennial Park. MAM The MAM presently occupies approximately 33,000 square feet in the Miami -Dade Cultural Center, a County -owned facility adjacent to the Stephen P. Clark Center in downtown Miami. The Museum has long outgrown its present facilities. In 2006, the Museum had total attendance of 62,000 visitors. Attendance is estimated by the Museum to be 190,000 at the new museum. Project Description GOB Project No. 296, as approved by the Board on July 20, 2004 and the voters on November 2, 2004, was clearly intended to be built at Bicentennial Park (now known as Museum Park) based on the project's approved description. The Museum will occupy approximately four acres of City land and will include 151,000 square feet of indoor space (to be built in two phases), under -building parking and outdoor art components that will be free of charge. The interior space will be complemented by outdoor public spaces and outdoor art components. The Museum will present exhibitions, expand its art collections and offer educational programs for the benefit, enjoyment and education of the public. The current overall project budget for the 121,000 square foot Phase 1 of the Museum is $220 million ($131 million for the building, $70 million for an operating endowment and $19 million for transitional expenses). The remaining 30,000 square feet will be constructed in Phase II, which is currently not scheduled. The $100 million from the BBC GOB Program will be used for a portion of the cost of construction of the building. Private contributions will fund most of the remaining costs. ,The Museum has done considerable programming and conceptual design work and started their schematic design in October 2007. Construction is scheduled to start in October 2009 with the opening presently scheduled for fiscal year 2012. Currently, the County's contribution totals approximately 35% of the MAM's operational budget. The operating budget for the new facility is estimated at $12.9 million. Over the next three years, we will work with the MAM to present revised budget proposals reflective of the MAM's increased operational costs to the Board for consideration. Such proposals will factor in, to the extent possible, expected private operating endowment support, administrative revenues, and grant funds. Selection of the Design Team in September 2006, MAM selected the firm of Herzog & de Meuron as its design architect. The design architect will be involved primarily in conceptual and preliminary design while the executive architect, to be named, will develop the detailed construction and permit plans. On June 6, 2006, the Board approved Ordinance No. 06-88 amending Section 2-8.2.10 of the Code of Miami -Dade County which allows municipalities and not -for -profits implementing a BBC GOB Program -funded project to use their own procurement procedures. The intention is for MAM to own the facility. This is expected to facilitate the on- going fundraising efforts and makes MAM totally responsible for any cost overruns. As a result, County procurement procedures do not apply. Nevertheless, MAM has followed the County process and on April 11, 2007 went before the County's Small Business Affairs Review Committee for the recommendation of Community Business Enterprise (CBE) goals for six relevant design professions. Although not required, MAM has committed to assign approximately 15% of that design work to CBEs. ;go the pubti MSM City clewic The MSM presently occupies approximately 60,000 square feet in a County -owned facility on land that is part of Vizcaya Museum and Gardens on South Bayshore Drive. The Museum has Tong outgrown its present facilities across from Vizcaya. In 2006, the Museum had an attendance of 200,000 visitors. Attendance is estimated by the Museum to reach 500,000 once the new museum opens downtown. Project Description GOB Project No. 297, as approved by the Board on July 20, 2004 and the voters on November 2, 2004, was clearly intended to be built at Bicentennial Park (now known as Museum Park) based on the project's approved description. The Museum will occupy approximately four acres of City land and will include up to 250,000 square feet of indoor space and approximately 100,000 square feet of outdoor museum space. The Museum will house a Planetarium, an Aquarium, a Wildlife Center, interactive exhibition spaces and a Learning Center. The current estimated cost of the Museum is $288 million ($260 million for the building and $28 million for transitional expenses) of which $175 million will come from the BBC GOB Program. Private contributions will fund most of the remaining cost. The Museum has done considerable programming work and expects to start its detail design as soon as the GOB grant agreements and MOU are executed. Construction is scheduled to start no later than 18 months after the execution of the agreements with the opening presently scheduled for 2012. Currently, the County's contribution totals approximately 11% of the MSM's operational budget. The operating budget for the new facility is estimated at $16 million. Over the next three years, we will work with the MSM to present revised budget proposals reflective of the MSM's increased operational costs to the Board for consideration. Such proposals will factor in, to the extent possible, expected private operating endowment support, administrative revenues, and grant funds. Selection of the Design Team On May 4, 2007 the MSM selected the firm of Grimshaw Architects as its design architect and Rodriguez and Quiroga as its executive architect. Both architects will be involved throughout the project. As previously mentioned, on June 6, 2006, the Board approved Ordinance No. 06-88 amending Section 2- 8.2.10 of the Code of Miami -Dade County allowing municipalities and not -for -profits implementing BBC GOB Program -funded projects to use their own procurement procedures. The intention is for MSM to own the facility. This is expected to facilitate the on -going fundraising efforts and makes MSM totally responsible for any cost overruns. As a result, County procurement procedures do not apply. Nevertheless, MSM has followed County process and on August 29, 2007 went before the County's Small Business Affairs Review Committee for the recommendation of Community Business Enterprise (CBE) goals. Although not required, MSM has committed to assign approximately 15% of its design work to CBEs. Memorandum of Understanding More than two years ago, the City of Miami contracted with Cooper, Robertson & Partners to work with MAM, MSM and the County to develop a master plan for the redevelopment of Bicentennial Park. A product of this work is a site plan for the approximately 29-acre Bicentennial Park that features specific locations for developing new art and science museums on a total of 8 acres (4 acres for each museum) and a 21-acre park design. While this work was progressing, the City, the museums and the County began discussions regarding the contractual relationships necessary for developing the Museum Park project. The County, the City, MSEA, MAM, and MSM/HASF are parties to the attached MOU (Exhibit C) that has been developed to set forth the central business terms of the Museum Park project. For the purpose of the GOB grant agreements with MAM and MSM, it is important to highlight the fact that the MOU reflects the concurrence of all of the parties to the location of the museums on approximately 8 acres at Bicentennial Park near 1-395. museum parcels are not finalized yet. However, the fact that the MOU represents consensus among -a the parties regarding the museums' locations (site control) provides sufficient confidence now to recommend the waiver of BBC GOB Program requirements regarding control of the property and to allocate the limited BBC GOB Program funds for these projects covered in the grant agreements. This will provide resources necessary to maintain the momentum necessary for the success of these projects. It should be noted that the City of Miami already has allocated funds to the museums from its Homeland Defense Bond Program to help cover capital project planning expenses to date. Future allocations of BBC GOB Program grant funds are subject to the museums demonstrating satisfactory control of the property for the development of their projects. Highlights of other key business terms covered by the MOU include: • Each of the museums will serve as developer of its capital project, selecting firms and entering into agreements for design and construction of its building. The City of Miami will serve as developer for the park. • Each of the museums will own and operate the improvements built on its designated 4-acre parcel in Bicentennial Park (i.e., the museum facilities). The HASF will have space in the MSM facility for exhibits and programs. • The City will lease the museum parcels to the MSEA and MSEA will execute sub -leases for each parcel with each museum for a series of automatically renewable terms, totaling 99 years. This parallels the land arrangements made by the City and MSEA for the development of the Miami Children's Museum on Watson Island. Exhibit B to the MOU is the Museum Park Site Plan identifying the museum parcels. • Each museum is committing to a Cost Overrun Guaranty that requires MAM and the MSM to be solely responsible to pay all costs in excess of the County's allocation of BBC GOB Program funds. • The County will be responsible for re -opening the Bicentennial Park MetroMover Station and improvements to Pump Station #2 considered necessary by the Miami -Dade Water and Sewer Department. • The City of Miami has not identified sufficient funds to implement the park improvements in the Cooper, Robertson & Partners' master plan; the pending first amendment to the Omni Redevelopment Area Interlocal Agreement would provide the City with funds to help cover park development costs. • Among the outstanding issues that the museums, the City and MSEA have committed to resolve in subsequent agreements include: the disposition of the museum buildings at the termination of the leases/sub-leases; the responsibility for costs of environmental remediation that may exceed the $2 million committed by the City of Miami; and the details of identifying and assigning responsibility for shared infrastructure costs (e.g., roadways and utilities that are used by both the museums and the park). • The MOU is a non -binding agreement that sets forth the framework for developing more detailed, binding agreements that are called for in the MOU (e.g., the leases/sub-leases; a master development agreement; a master operating agreement). Other Issues The BBC GOB Program Administrative Rules require that grantees demonstrate site control as a pre- condition to receiving a grant. This requirement is included in the standard Grant Agreement executed by the County and BBC GOB Program stakeholders. Although all parties firmly expect that the museums will be built at Museum Park, the lease between the City and MSEA and the corresponding sub -leases between MSEA and the museums are not in place. We recommend that the Board approve the proposed Grant Agreements which do not require site control for the limited purpose of allowing the museums to continue moving forward. No further funds beyond the $235,000 initial grant amount for MAM and $3.3 million to MSM/HASF will be committed without the resolution of the site control issue. Payments to the museums under these agreements will be made on a reimbursement basis in accordance with the BBC GOB Program Administrative Rules. Spending the balance of the GOB total allocations will be authorized through the execution of subsequent grant agreements as the work progresses. We will report to the Board on the progress of these projects at least on a quarterly basis. Submitted Into the public record in nonnection with item r(`�Er•,. Z eon 03- The leases and sub -leases referenced in theplcifliOtht' ='Psor Clerk As part of the BBC GOB Program grant review process, under direct oversight from my office, the Office of Capital Improvement and the Department of Cultural Affairs will perform certain due diligence and evaluation to ascertain that the Museums are ready and capable of implementing the projects. This effort will include a review of the project budgets and schedules, as well as a review of the necessary additional funding sources. We will not execute the grant agreements until we are satisfied that these projects are ready to move forward. We have had considerable discussions regarding how the County will monitor this project. The primary oversight responsibility on behalf of the County will rest with the Miami -Dade Department of Cultural Affairs with support from the Office of Capital Improvements. My office will be directly involved in overseeing these efforts. The County will likely also retain the services of a dedicated "owner's representative" to provide more in-depth oversight. Finally, these grant agreements and the MOU are instruments necessary to implement the decision the Board made in July 2004 when it approved the two museums for inclusion in the 2004 BBC GOB Program referendum. The voters overwhelmingly endorsed that decision by the Board with a resounding "yes" vote in November of that year. The recent favorable action by the Board on the Global Agreement establishes the financial framework that will help the City to fund its responsibilities under the MOU. This item authorizes the next step in the development process for the two museums and ensures that both projects continue to move forward. Assistant County Manager Submitted Into the record in con nection with item RE, Z on 01 Priscilla A. CClerk