HomeMy WebLinkAboutLegislation (Version 3)City of Miami
Legislation
Resolution
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
File Number: 12-00363
Final Action Date:
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
AUTHORIZING THE CITY MANAGER TO EXECUTE A MANAGEMENT
AGREEMENT, IN SUBSTANTIALLY THE ATTACHED FORM, FOR A FIFTEEN (15)
YEAR INITIAL TERM, WITH UP TO THREE (3) FIFTEEN (15) YEAR TERM
OPTIONS TO RENEW, WITH OLYMPIA CENTER, INC., A FLORIDA 501(c)(3)
NOT -FOR -PROFIT ORGANIZATION FOR THE ADMINISTRATION, OPERATION
AND MANAGEMENT OF THE AFFORDABLE HOUSING RESIDENTIAL RENTAL
TOWER AND RELATED AMENITIES INCLUDING RETAIL SPACES OF THE
OLYMPIA BUILDING LOCATED AT 174 EAST FLAGLER STREET, MIAMI,
FLORIDA 33131; FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE
ALL OTHER CONTRACTS, DOCUMENTS AND AGREEMENTS, INCLUDING
' LEASES, FOR SAID PURPOSE, IN A FORM ACCEPTABLE TO THE CITY
ATTORNEY, AND IN COMPLIANCE WITH REQUIREMENTS OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED, THE CITY OF MIAMI'S OBLIGATION
UNDER THE SUNSHINE STATE LOAN POOL PROGRAM AND THE CITY OF
MIAMI'S HOMELAND DEFENSE/NEIGHBORHOOD CAPITAL IMPROVEMENTS
BOND PROGRAM.
WHEREAS, pursuant to the Special Warranty Deed dated July 24, 1975 recorded in Official
Records Book 9053, Page 723, in Miami Dade County, Florida, the City of Miami ("City") is the owner
of certain real property located at 174 East Flagler Street, Miami, Florida, a/k/a, The Olympia Building,
which consists of the Gusman Theater for Performing Arts, an affordable housing residential rental
tower and related amenities including retail spaces (collectively the "Olympia Building"); and
WHEREAS, pursuant to that certain restriction in the Special Warranty Deed dated July 24, 1975
and Ordinance No. 8435, adopted July 31, 1975, the City Commission authorized the Off -Street
Parking Board of the City of Miami d/b/a the Miami Parking Authority (hereinafter "MPA") to administer
the Olympia Building; and
WHEREAS, the MPA named the City its successor in the administration and operation of the
Olympia Building pursuant to MPA Resolution No. 10-08; and
WHEREAS, pursuant to Resolution No. 11-0113, adopted March 24, 2011, the City named Olympia
Center, Inc. its successor in the administration and operation of the Gusman Theater for the
Performing Arts ("Theater") of the Olympia Building to promote, among other things, cultural arts and
other cultural program activities and
WHEREAS, Olympia Center Inc., is a Florida 501(c)(3) not -for -profit organization established on
September 17, 2010 for the purposes of promoting and preserving the Olympia Building; and
WHEREAS, Olympia Center, Inc. through its management and fundraising efforts has successfully
operated the Theater thereby affording the public continued access and. enjoyment of this invaluable,
City of Miami Page I of 3 File Id: 12-00363 (Version: 3) Printed On: 8/31/2.012
File Number: 12-00363
historical and cultural asset; and
WHEREAS, the continued success of the Theater is critical to the ongoing revitalization of
Downtown Miami; and
WHEREAS, the City desires to transfer the administration and operation of the affordable housing
residential rental tower and related amenities including retail spaces of the Olympia Building
(hereinafter the "Property") to Olympia Center, Inc. to among other things, continue implementing the
housing project developed to benefit persons or households with Low- and/or Moderate -Income and to
promote the use of the Property for the benefit of the Olympia Building; and
WHEREAS, Olympia Center Inc., will administer and operate the Property for no fee and all
revenues derived from the Property will be re -invested into the Property; and
WHEREAS, from time to time, renovations, restorations and improvements have been performed
on the Property with the use of proceeds derived from City issued bonds and other governmental bond
loan programs; and
WHEREAS, the Internal Revenue Service provides for certain operating guidelines and
requirements for third -party private entity contracts to manage, lease or otherwise use bond -financed
facilities; and
WHEREAS, funding from the City's Homeland Defense/Neighborhood Improvements Improvement
Bond program and from City loans obtained from the Sunshine State Loan Pool program have
previously been used and are anticipated to be used in the future for certain repairs and improvements
to the Property; and
WHEREAS, the implementation of any agreements between the City and Olympia Center, Inc.
shall comply with all Internal Revenue Service operating guidelines and requirements; and
WHEREAS, (i) in accordance with the Internal Revenue Code guidelines applicable to agreements
involving governmental units and uses of bond -financed facilities by a not -for -profit organization with
tax-exempt status under Internal Revenue Code Section 501(c)(3), and (ii) in consideration of the
ongoing Homeland Defense/Neighborhood Capital Improvements Bond Program and potential future
City needs, the City has determined to retain the Property and to enter into a Management Agreement
for the Property with Olympia Center, Inc.; and
WHEREAS, the development, management, and use of the Property by Olympia Center Inc. will
be subject to the following continuing compliance covenants, among others necessary to comply with
the Homeland Defense/Neighborhood Capital Improvements Bond Program, to be included in the
Management Agreement: (i) the Property must be developed and managed for residential and
commercial retail uses accessible to the public; (ii) Olympia Center, Inc. must retain its State of Florida
and Federal not -for -profit status throughout the initial term of the Management Agreement and any
renewals thereof; (iv) the initial term shall be for fifteen (15) years, with up to three (3) options to renew
for fifteen (15) years each term; (v) any and all revenues and other compensation for the development,
management use of the Property must conform to the requirements of the Internal Revenue Code for
bond financed facilities; and (vi) Olympia Center; Inc.'s rights to develop, manage and use the
Property will terminate and rights shall revert to the City if the Property ceases to be developed,
managed or used for its intended purpose;
City of Miami
Page 2 of 3 File Id: 12-00363 (Version: 3) Printed On: 8/31/2012
File Number: 12-00363
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this. Resolution are adopted by
reference and incorporated as fully set forth in this Section.
Section 2. The City Manager is authorized {1} to execute a Management Agreement, in
substantially the attached form, for a fifteen (15) year initial term with up to three (3) options to renew
for terms of fifteen (15) years each, with Olympia Center, Inc. for the administration, operation and
management of the affordable housing residential rental tower and related amenities including retail
spaces of the Olympia Building located at 174 East Flagler Street, Miami, Florida 33131.
Section 3. The City Manager is further authorized {1}, to from time to time, execute all other
contracts, documents and agreements, including leases, in a form acceptable to the City Attorney,
necessary to implement the purpose of the management agreement and thereby assure that the
project benefits persons or households with Low- and/or Moderate -Income, and the Olympia Building.
Section 4. This Resolution shall become effective immediately upon its adoption and signature of
the Mayor. {2}
APPROVED AS TO FORM AND CORRECTNESS:
JULIE O. BRU
CITY ATTORNEY
Footnotes:
{1} The herein authorization is further subject to compliance with all requirements that may be
imposed by the City Attorney, including but not limited to those prescribed by applicable Charter and
Code provisions.
{2} If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar
days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become
effective immediately upon override of the veto by the City Commission.
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