HomeMy WebLinkAboutSummary FormDate: 12/02/08
AGENDA ITEM SUMMARY FORM
FILE ID: C8-O(45a.
RE.18
Requesting Department: City Manager's Office
Commission Meeting Date: 12/11/2008 District Impacted: AlI.
Type: ® Resolution ❑ Ordinance ❑ Emergency Ordinance C Discussion Item
(l Other
Subject: MUSEUM PARK PROJECT — LEASE AGREEMENT WITH MIAMI ART MUSEUM OF DADE
COUNTY ASSOCIATION, INC. AND THE MUSEUM OF SCIENCE, INC.
Purpose of Item:
A Resolution of the Miami City Commission, with attachments, approving the terms of, and authorizing the City Manager
to execute, a Lease Agreement between the City of Miami (the "City"), a municipal corporation of the State of Florida and
the Miami Art Museum of Dade County Association, Inc. ("MAM"), a Florida not -for -profit corporation, in substantially
the form attached to the Resolution as Attachment I, and a Lease Agreement between the City of Miami and the Museum
of Science, Inc. ("MSM"), a Florida not -for -profit corporation, in substantially the form attached to the Resolution as
Attachment 2, to lease to each MAM and MSM, approximately 4 acres of land located in Museum Park. The City shall
transfer possession of the premises leased to each museum on the possession date, as defined in each Lease. Each Lease is
for a term of thirty (30) years commencing on the possession date, unless terminated at an earlier date pursuant to the
terms of the Lease. The Lease term shall be automatically renewed for two (2) consecutive periods of thirty (30) years
each and one additional consecutive period of nine (9) years, provided that no uncured event of museums' default exists at
the commencement of the renewal term. The total term of each Lease shall not exceed ninety-nine (99) years, unless
extended by mutual agreement of the parties, with the approval of the City Commission. From and after the possession
date, each museum shall pay the City, in advance, base rent of two dollars (*S2.00) per Lease year, as stipulated in each
Lease; with other terms and conditions as more particularly set forth in the Leases. The Leases allow the museums to place
leasehold mortgages as interim financing mechanism for County GOB funding or casualty insurance proceeds. The Leases
provide that if an Environmental Remediation Agreement and a Development Agreement are not signed within 365 days
of the effective date of the Leases, either party to a lease may terminate it. The Lease with MAM requires the property to
be used as a first class accredited art museum at all times and the Lease with MSM requires the property be used as a first
class accredited science museum at all times. Each Lease includes the provisions for a Community Benefits Agreement.
Background Information:
See Supplemental Sheet
Budget Impact Analysis
*YES Is this item related to revenue?
NO Is this item an expenditure? If so, please identify funding source below.
General Account No:
Special Revenue Account No:
CIP Project No:
NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds?
Start Up Capital Cost:
Maintenance Cost:
Total Fiscal Impact:
Final Approvals
(SIGN AND DATE)
CIP N/A Budget N/A
Gru.,��
!f usini; or reccivin, Capital funds Risk Management
Purchasing N/A` ( Dept. Director
a
Chief ..t'hJia-/Z!%?.ad City Manager
N/A
SUPPLEMENTAL SHEET
Subject: MUSEUM PARK PROJECT — LEASE AGREEMENT WITH MIAMI ART MUSEUM OF DADE
COUNTY ASSOCIATION, INC. AND THE MUSEUM OF SCIENCE, INC.
Background Information:
The City is owner in fee simple of all the land located in the Greater Miami downtown area, in Miami -Dade
County, Florida, know as both the "Bicentennial Park" and "Museum Park". On July 25, 2002, the City
Commission of the City of Miami passed and adopted Resolution No. 02-862 authorizing and directing the City
Manager and City Attorney, to negotiate with the Museum of Science, Inc. ("MSM") and the Miami Art
Museum of Dade County Association, Inc. ("MAM"), for the development of new museum facilities within the
Museum Park, including without limitation the terms and conditions of each museum's respective tenancies in
Museum Park.
The Board of County Commission of Miami -Dade County, Florida, passed and adopted Resolution Nos. R-
912-04, R-913-04, R-914-04, R-915-04, R-916-04, R-917-04, R-918-04 and R-919-04, which authorized the
issuance of $2.926 billion in general obligation bonds for capital projects, including a new art museum and
science museum within the Museum Park, which bonds were approved by a majority of those voting on
November 4, 2004.
On September 12, 2008, the City, the Miami Sports and Exhibition Authority ("Authority"), Miami -Dade
County, MSM, MAM, and the Historical Association of Southern Florida, Inc. entered into a Memorandum of
Understanding ("MOU") concerning the development, design, construction and operation of the various
components of the Museum Park Project in Museum Park.
The MOU was approved by the County Board of Commissioners, the Board of Directors of the Authority and
the City Commission by Resolution Nos. R-435-08 and R-080290. The MOU provides for the City to lease a
portion of Museum Park to the Authority, and for the Authority to thereafter sublease portions of the Property
to each museum, for the development and operation of a first class art museum, a first class science museum
and other related facilities and improvements, all in accordance with the provisions of Section 29-B of the City
Charter.
On November 13, 2008, the City Commission of the City passed and adopted Resolution No. R-08-0653
authorizing and directing the City Manager to negotiate and finalize the definitive documents for the Museum
Park Project directly with MAM and MSM, without the involvement of the Authority, to implement the
Museum Park Project in a more efficient manner.
The City desires to lease to the museums for the purpose of developing, constructing, managing and operating a
first class accredited art/science museum. The museums intend to contribute sufficient funds from public and
private sources as is necessary for the construction, operation, programming, maintenance, renovation and
repair of the museums.
The Community Benefits Committee will also present their findings and recommendations regarding the
significant community benefits of the Museum Project and upon approval of the City Commission it will
become part of the Lease.
Miami -Dade County has published their intention to sell bonds to further fund the Museum Projects and will
release such funding when the museums can demonstrate site control via a lease with the City of Miami.
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