HomeMy WebLinkAboutSubmittal-Amy Huber-Marine Stadium Update Memo1.
CITY OF MIAMI, FLORIDA
INTEROFFICE MEMORANDUM
TO. Honorable Mayor and
Members of City Commission
DATE: May 8, 2015
SUBJECT: Marine Stadium Update
ENCLOSURES: Consultant Report,
Marine Stadium & Flex Park
Renderings
Background:
On January 8, 2015, the City Commission approved the issuance of tax-exempt and taxable special
obligation bonds in the amount of $16M for the purposes of creating a flex park in the area surrounding the
Miami Marine Stadium on Virginia Key in a manner similar to what was depicted in the Virginia Key Master
Plan, adopted by the City Commission on July 22, 2010 At the January 8, 2015 meeting, there was also
discussion regarding renovation of the Marine Stadium itself, as well as the governance structure that
would ensure successful operation and management of the Stadium. On April 9, 2015, the City
Commission adopted Resolution No. R-15-0173, supporting a request to Miami -Dade County for a four (4)
month extension of the $3,000,000 GOB funds allocated towards the restoration of Miami Marine Stadium.
Per the Resolution, the City must demonstrate to Miami -Dade County that progress is being made towards
this regard. Below you will find an update on the various topics discussed at the previous meetings.
Virginia Key Master Plan
The Virginia Key Master Plan (the "Plan") was adopted in July 2010 after several meetings were held
between the City, Miami -Dade County. the Village of Key Biscayne, and various planning coalitions in order
to achieve a consensus plan for the area. The approved Plan contemplated a restored Miami Marine
Stadium as the focal point of the Island, including an open green field to be used as a Flex Park for daily
activities and sporting events such as soccer, football, lacrosse and triathlons
Flex Park Construction
The Flex Park project consists of the east parcel (approximately 7 acres), which will be a combination of an
asphalt area to be covered with artificial turf and a turf block section for multipurpose recreational use. The
artificial turf section will be large enough for two (2) regulation size soccer fields, or four (4) youth size
fields. The west parcel (approximately 3 acres) will be an improved parking area. Flex park construction is
currently underway, the improvements of which include the installation of drainage, electrical feeds,
telecommunications, new water and sewer line, and the reconstruction of the existing sanitary sewer line.
The deadline for completion of the flex park is estimated to be December 2015 with the Miami International
Boat Show scheduled to run February 11-15, 2016
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Marine Stadium Construction
The overall cost for the renovation of Marine Stadium is currently estimated to be $37.8M. The breakdown
of this cost estimate consists of the following components:
Survey, Design, Testing and Permits: $ 3.2M
Stadium Reconstruction and Restoration: $ 30.6M
Stadium Audio/Video Equipment: $ 2,5M
Administration & Overhead: $ 1.5M
Total: $ 37.8M
A Request for Qualifications to select an Architectural/Engineer Firm to design the restoration of the Marine
Stadium is on hold pending direction from the City Commission and approval of additional design funds.
Marine Stadium Renovation Funding
it is proposed that the total cost of the $37.8M renovation be split between the City and philanthropic efforts
in the following manner:
Stadium Operator Contribution: $2.5M (If Operator option is chosen)
City: $17.65M
$3M County GOB (these funds are last in, and must meet County criteria in order to
access)
$1M State Grant (awarded during 2014 legislative session. To be used for final design,
additional funds are needed)
$3M Florida Inland Navigation Grant (Proposed)
$10.65M City Funds and/or State Appropriations (Proposed)
Philanthropy $17.65M
$500k Gloria Estefan Foundation Grant
$80k AMEX Grant
$210k R Kirk Landon Foundation
$180k Getty Foundation
$75k National Trust for Historic Preservation Grant
$50k Dade Heritage Trust
$6M National Grass Roots Campaign (proposed)
$6M Historic Tax Credits (proposed)*
$4.56M Other Fund Raising (Proposed)
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*The Administration is currently working with the National Trust for Historic Preservation to reactivate the
City's nomination for the National Register of Historic Places, In order to be eligible for the use of the
Federal Historic Tax Credits, Miami Marine Stadium must be on the National Register. Once the
designation is received, the Administration will work towards establishing the corporate legal structure
necessary to access the credits since the City, as a public agency, has no tax liability against which to
apply historic tax credits.
More information on the use of Historic Tax Credits can be found on the National Trust Community
Investment Corporation's website, a subsidiary of the National Trust for Historic Preservation.
http://ntcicfunds.com/
Other RFP's/Improvements
The Virginia Key Master Plan also called for the construction of new marina facilities surrounding the Miami
Marine Stadium. The City of Miami is currently drafting an RFP for the Virginia Key Marina. The current
lease, held by Rickenbacker Marina, Inc., expires in July of 2016. While the RFP for the marina is going
through the procurement process, the adjacent Rowing Club (belonging to the City) will be reviewed for
possible capital improvements. It is the intention to review plans to formally establish a mooring field in the
Marine Stadium basin, and to create a new small marina served by upland services located at the Miami
Rowing Club.
Restoration of the Miami Marine Stadium, creating a new marina, and implementing a mooring field in the
basin which would take full advantage of the basin's calm current and scenic environment would
collectively serve to completely reenergize and revitalize the entire area from what is currently a collection
of moderately successful ventures into a tourist destination and draw. Leading the overall plan with the
restoration of the Marine Stadium, combined with the revitalization of the other adjacent venues would bring
in substantial new sources of income.
The Stadium would serve as a real and viable destination draw for both the local population and for
tourism. Nearby restaurants and facilities such as Rusty Pelican and the surrounding marinas would see
increased patronage and additional boat dockage. The renovating, addition. and improvement of the Miami
Rowing Club facility would increase its revenues. both through additional programming and public rentals of
the facility. As a result, City revenues would increase as boaters enjoy the benefits of a new City mooring
field and marina. and the public makes increased use of the Rowing Club.
Marine Stadium Governance:
The Miami Marine Stadium and the surrounding areas present a rare and exciting opportunity for the City of
Miami to revive a landmark and establish a new cultural center in the Virginia Key area in accordance with
the Virginia Key Master Plan. When in operation. the Miami Marine Stadium and its surrounding area will
improve the social, economic and physical wellbeing of the City of Miami and its residents by attracting
tourists, attracting locals back to a historic and nostalgic landmark fondly remembered by most, and would
serve to improve the community.
A. There are multiple ways the City of Miami can operate the Miami Marine Stadium, similar to the way
many cities have successfully managed and operated different venues, outdoor theaters, and parks.
The City Administration recently retained the services of Kathy Blaha, former Senior Vice President of
the Trust for Public Land, in order to provide a comprehensive review of the governance structures in
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other successful parks. Ms. Blaha has over 25 years of experience assisting private, public sector, and
not -for -profit corporations implement park initiatives and governance frameworks. Ms. Blaha studied
various parks around the country and provided several recommendations to ensure the success and
long-term viability of Marine Stadium, one of which calls for the formation of a new steering committee.
Steering committee membership should, at a minimum, include members or their designees
representing
• the Mayor of Miami (1)
• the Miami City Commissioners (5)
• the City Manager (1)
• the City of Key Biscayne (1)
• the Miami -Dade County Commission (1)
• the Dade Heritage Trust (1)
• the National Trust for Historic Preservation (1)
• the Friends of Miami Marine Stadium (1)
• the Trust for Public Land (1)
The role of the steering committee would be to:
1) Create principles or a set of values to guide decisions around public access & use, historic
preservation, parkland use, design integrity, insistence on quality, conservation, financial viability,
etc.
2) Develop a mission statement and goals for the project that can galvanize public interest and serve
as the basis for requesting EOIs and RFPs.
3) Draft a business plan that can shape a request for an EOI.
4) Recruit leadership and start-up funding for a new nonprofit organization to partner with the city to
identify ways to manage the project site.
5) Develop a public outreach effort regarding use of the site's parkland.
6) Develop a marketing/fundraising plan for the partnership, using the boat show to launch plans and
fundraising for the site.
To maintain stability within the newly established governance structure, members of the Steering
committee will remain as members of the Governing Board. Support for restoring the Marine Stadium will
hinge on the confidence in the governance of the site, and a strong commitment by the City to forge
successful partnerships will be critically important to advance the Stadium's mission.
Stadium Manager/Operator
After obtaining the recommendations of the Steering Committee, It is the intent of the City to begin the
procurement process to select a qualified manager/operator to oversee the Marine Stadium area, and to
embark on a project to revitalize the park, the surrounding areas, and intrinsic in the plan is the intent to
generate income that will be set aside to repair, revitalize, and bring back the Stadium and the surrounding
area.
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The following is a list of key points and information concerning Miami Marine Stadium.
• Unique venue
• Incorporates an Outdoor Stadium facing the water
• 6,566 Seating Capacity
• Large open space approximately 10 acres
• Expected uses include:
• Water -based sporting events
• Specialized trade shows & festivals
• Concerts
• Environmental tours and educations experiences showcasing the local park and
pristine wildlife areas
• Use of park space
• Uses for Funds Generated from Outside Sources or from Operations:
* First To Pay Down Debt (Funding)
* Set Aside To Maintain and Operate Stadium
* Money Collected From Revenues, Used Towards Stadium
Options
Two options are being considered for the actual operations/management of Miami Marine Stadium. These
include either (I) Operator or (II) Manager.
Selection of an Operator
The City can put together a Request For Proposals ("RFP") to the public for an operator ("Operator")
whereby the operator would enter into a long term agreement to operate the Stadium, and in return;
renovate, redeveloper, refurbish and bring back to life one of the most iconic structures in the City of Miami,
and in the South East. The instrument that would convey the use to an Operator can be one of several
available within Miami's Code:
• Long Term Lease;
• Revocable License; or
• Public Private Partnership
In any case, the RFP and the decision will need to go through the formal process of choosing the Operator,
and then going to referendum to comply with Charter requirements.
It would be expected that whichever entity is chosen to operate the Stadium and its adjacent water rights
would be required to put together a comprehensive plan to completely restore the stadium, and would need
to include a detailed financial business plan on the viability, and the proof of financial stability to accomplish
this revival. The Stadium is currently in need of structural work. It needs to be maintained once it is
repaired. The Operator would need to provide a commensurate level of comfort to the City administration,
City Commission, and most important, to the City residents that the Operator has the sophistication,
experience, aligned interests and the knowledge of construction required to restore the Stadium back to its
former glory.
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The stadium can offer an Operator a unique venue, and structured property, can provide the City with a
new source of revenue through possible leased income, shared profits, and/or real estate taxes.
The operational structure of any agreement would require the following:
• Provide a detailed scope of construction and its costs including proof of funds available to complete
the work.
❖ Provide the City with a critical time line for the construction, and a viable business plan of use
illustrating how the Stadium can cover its own costs.
❖ An affirmative declaration stating that the Operator will be responsible to secure the proper
governmental, environmental, and regulatory permits, permissions and plans to physically
reconstruct or renovate the physical structure.
❖ The Operator will be required to address the surrounding wetlands, conservation and
environmentally sensitive areas and show how those areas will be incorporated into the operational
business plan.
• provide for an interest reserve to carry the project during the construction period until such time as
the Stadium can cover its own operational cost
Selection Process:
Leased Area:
Term for Operator:
Capital Expense Required:
Base Rent:
Additional Rent:
Procurement by RFP Process through the Department of Real Estate &
Asset Management
Miami Marine Stadium, adjacent upland area, water/submerged area
designated under the deed as part of the venue. Portion in the deed
encompassing the Ralph Munroe Marine Stadium
30 Year initial Contract, with 5-year renewals (at the City's option)
Operator will be required to provide an upfront payment of Two Million
Five Hundred Thousand Dollars ($2,500,000) to secure the lease, and
would be responsible for any and all Stadium renovations. any and all
additional capital expense requirements above the initial capital provided
by the City to prepare the Stadium and its entire surrounding site
(including the separate Flex Park and Parking lot) (attached as Exhibit A).
The required outlay wit include but not be limited to any band shells.
whether temporary or permanent, seating areas, and other capital costs
associated with the production, operation, management, and maintenance
common with the type and level of a first class public venue/facility.
TBD, based on appraisals and/or Brokers Opinion of Values
Annual increases based on CPI (consumer Price Index), with a floor of
two and one-half percent (2.50%), and a cap of five Percent (5.00%)
Operator will be required to pay a percentage rent in addition to the base
rent, to be determined by an appraisal.
In the case of a Public/Private Partnership, the structure would be similar,
however, the City would participate in the overall profits from a joint
venture perspective. Both the Operator and the City would agree on a
shared percentage of the revenue without any 'net" of "gross"
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determinations (i.e. a joint venture split (after a reduced base rent) with a
fifty/fifty (50%/50%) split whereby the operator received fifty percent of the
profits, and the City receives an equal fifty percent of the profits)
Construction: Operator will be responsible for the costs of the Renovation, Design,
Construction, Operations & Maintenance, with the City of Miami's Capital
Improvements and Transportation Program's (CITP) oversight, and be
required to bid out to at least three bidders for any capital expenses
exceeding $10,000.
Oversight: City of Miami/Conservancy or trust will act as Asset Manager, and will
retain final decision on all major decisions and fiscal matters concerning
construction and operation on all venue matters, including approval of
shows and any productions.
Min. Capital Contribution: Two Million Five Hundred Thousand Dollars ($2,500,000) By Stadium
Operator. The City, at its sole discretion, may consider a lower dollar
amount towards construction provided that CITP approves the project as
being equal to or better in final scope than the City's plans.
Minimum Revenue to City: TBD on appraisals. However, minimum revenue to the City shall be no
less than the base rental payments if structure is a long term lease, or
If structured as a Public Private Partnership, than the City shall receive no
less than the base rent payments plus the City's proportionate share of
the final determined joint venture split percentage.
Scope: Management, Daily Operations, Park Upkeep, Supervised by the
DREAM/City Parks Department, and any future conservancy or trust
Natural Progression: Operation of a public venue
Actual Duties &
Expectations: Existing infrastructure including
o Management oversight
o Event services
o Finance and accounting
• Marketing support
• Corporate Operations Development Support
o Design review
• OSHA compliance
o Permits, warrants, all governmental approvals
Repairs and maintenance
Best practices National procurement and service contracts
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II. Selection of Manager
Through the procurement process, the City can hire or contract with a real estate venue manager
("Manager") to run, report, and operate the Stadium and its immediate surrounding areas. There are
various factors that should be considered in the selection of a Manager. The selection process should be
structured such that the interests of the Manager are closely aligned with those of the City. Any selection
process and decision to appoint or hire a manager of the stadium area should be predicated on a
management firms experience running large parks, stadiums, venues, outdoor theaters, and/or cultural
centers. The Management Company's primary focus should be highly focused on the management,
maintenance, and marketing of the Miami Marine Stadium and the adjacent water/submerged areas. The
Manager should be tasked with day to day operations including. but not limited to, landscape and grounds
maintenance, Public relations, environmental concerns, and the opportunity to contract with outside groups
for a variety of special events therein.
In order for a Manager to be properly motivated to ensure the successful operation of the system, it is
recommended that the Manager to be required to contribute some capital to the project, to have to pay
some minimal initial payment contributing to the redevelopment of the Marine Stadium, and be responsible
for the maintenance of the stadium. The Non-profit group working with the stadium Manager would
participate in philanthropic activities in order to help address any budgetary shortfalls beyond the
responsibilities of the Manager. In order to ensure that the rehabilitation of the stadium and operational
needs are properly addressed. the City shall require that the stadium Manager be selected early on in the
process. The Manager shall be responsible for the overall implementation of all administrative details,
including hiring the architectural landscape and design consultant and/or firms, and carrying out the hiring,
management, and financial reporting of the General Contractor, construction contract, and critical path
timeline. The Manager shall oversee the construction management and physical implementation of the
stadium rehabilitation and operation of amenities. By taking an active role at the beginning of the process,
the Manager can ensure the creation of a viable stadium & submerged land entertainment venue.
Please note that although the nomenclature of calling this a "Marine Stadium", the stadium and water sport
operation will be require financial oversight and daily operational expenses. There will be complex financial
contracts involving water/stadium entertainment promoters, entertainment management companies,
agents, vendors, and sophisticated legal documents. It is market practice to have these types of venues
managed by Asset Managers in conjunction with municipal governments, conservancies, and trusts, By
having the Manager address design and construction, design conflicts can be avoided and perhaps
economies of scale can be realized with regard to construction costs.
Selection Process:
Area of Management:
Term for Manager:
Capital Expense Required:
Procurement by Department of Real Estate & Asset Management
Miami Marine Stadium, adjacent upland area. water/submerged area
designated under the deed as part of the venue. Portion in the deed
encompassing the Ralph Munroe Marine Stadium
5 Year initial Contract, with 5-year renewals (at the City's option)
Referendum required should 5-year renewals be provided.
Any and all additional capital expense requirements above the additional
capital expended by the City to complete the Flex Park, Parking areas,
and surrounding areas (attached as Exhibit A). Note: The Manager shall
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not be entitled to any portion of the NMMA international Boat Show
proceeds (it will formally be carved out in the management agreement),
however. the Manager. in return for receiving its management fee will help
with the logistical coordination and implementation of the show, if the
NMMA Boat Show shall continue to operate the show past the initial
inaugural show. The required outlay will include but not be limited to any
band shells, whether temporary or permanent, seating areas, and other
capital costs associated with the production, operation, management, and
maintenance common with the type and level of a first class public
venue/park/facility.
Construction: Manager will oversee Design, Construction, Operations & Maintenance,
act as owner's representative, and be required to bid out to at least three
bidders for any capital expenses exceeding $10,000.
Construction Fee: Manager will receive a 5% override on total construction costs, provided
that the bidding process is approved by the City. An additional 1% fee will
be paid to the Manager if the project comes in under budget, or prior to
the end of the critical path timeline.
Construction Oversight: City of Miami/Conservancy or trust will act as Asset Manager, and will
retain final decision on all major decisions and fiscal matters concerning
construction and operation on all venue matters, including approval of
shows and any productions.
Minimum Revenue to City: Sixty-five percent (65%) of the income (to be defined in the formal RFP
will be paid to City. Manager will receive thirty-five percent (35%) of the
income.
Fee to Manager: Three percent, up to five percent (3% - 5°i°) of Gross Income with a base
fee of One Thousand Five Hundred Dollars ($1,500) per month during the
initial phase to promote the site and grow operations. Fee will be
increased as an incentive bonus during the managerial contract term.
Goal: Establish Long Term Plan For Operational Control By The
City/Conservancy/Trust, With A Management Company Running
the site, regardless of the structure
Bonus Percentage Fee Based On increase or growth of the Gross
Income: Between two percent to three percent (2%-3%)
Base Amount To Compensate Manager during initial Opening
Possible Percentage Points as a Bonus to Operate (1-2%)
k Management Company Will Maintain Site, Landscape, Keep Up
Appearance & Operations
Scope: Management, Daily operations, Park Upkeep, Supervised by the
DREAM/City Parks Department, and any future conservancy or trust
Natural Progression: Operation of a public venue
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Actual Duties &
Expectations: Existing infrastructure including:
o Management oversight
o Event services
o Finance and accounting
• Booking synergy:
o Exploring all opportunities for venue
• Marketing support
• Corporate Operations Development Support
o Design review
o OSHA compliance
o Permits, warrants, all governmental approvals
o Repairs and maintenance
o Best practices
o National procurement and service contracts
cc: Alice N. Bravo, P.E,, Deputy City Manager/Chief of Infrastructure
Kevin Kirwin, Director, Parks and Recreation
Daniel Rotenberg, Director, Real Estate and Asset Management
Mark Spanioli, P.E., Director, Capital Improvements and Transportation
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The Marine Stadium Park Opportunity
Kathy Blaha Consulting, LLC
Submitted into the public
Record for item(s) PZ. 3
on 05/14/2015, City Clerk
The Marine Stadium Park Opportunity
Introduction
Making a stadium profitable is a challenge. The construction, maintenance and management of a
major stadium are concerns for many cities. A stadium — including a structure like Miami Marine
Stadium — is a major public asset which brings prestige to the city, and may, when well -managed,
generate considerable income for the city. In the case of the Marine Stadium, there is also
substantial parkland around the stadium that can provide opportunities for even more civic and
economic value. Cities all over the country have made large capital investments to build and
renovate their stadiums and signature parks in order to attract events and programs to support
them.
Operating a stadium however, is much more like a private enterprise. Contracts must be
negotiated and revenue generated from events, concessions, and other uses of the stadium. There
is a need to work quickly and flexibly to build long-term relationships with key tenants, customers
and other community and neighborhood users of the site and to maximize opportunities for income
generation in order to sustain its operations. Most governmental entities find this difficult to do.
Their necessary administrative and political processes preclude rapid decision -making and
entrepreneurial management that can support successful budget operations.
In the past twenty-five years there has been a rise in the number of public -private partnerships
for managing publicly owned stadiums, parks, sports and entertainment venues and many other
forms of public infrastructure and facilities with much success. These public -private partnerships
are alternately framed as a panacea to all of a city's challenges or privatization of critical public
assets. In reality, they are neither. A well -executed partnership is simply another tool for
procuring or managing a park or stadium's infrastructure, operations and management — albeit
drawing on private sector resources to augment those of public agencies.
But public -private partnerships are complicated. They require good financial management, com-
plex negotiations, public scrutiny, long-term commitments and political leadership; and they put
both the public sector and private partners into a new relationship that requires both partners to
learn a relatively new set of skills about collaboration.
While the public sector brings significant expertise to projects private partners can bring new
technologies, management techniques and revenue streams that exceed the capabilities of one
city. Working together, private and public partners are often able to accomplish far more than
they can do alone. Their combined mixture of differing approaches and expertise is the added
value which these partnerships bring, making them far more than just the sum of their parts.
More resources — whether money, staff time, products, or in -kind contributions — are always
welcome by public agencies trying to effectively operate public assets. But as important is the
expertise — the ability to be flexible, nimble and creative in approaching operations — which
private partners can bring to a partnership. The real benefit of a private partner to public parks
for example, has been management expertise — the innovation, professional skill, risk sharing, and
entrepreneurial culture they bring — that makes these collaborations successful.
What all public -private partnerships have in common is a common vision, shared goals, investment
from all partners, and a formalized structure with shared decision -making. Public -private
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partnerships are not a substitute for direct public sector involvement and investment; they are
highly dependent on public revenue and expertise to operate effectively. In the case of Miami
Marine Stadium Park, the land and facilities are publicly owned with an implicit contract with the
residents of the city to protect the place for public use and enjoyment.
The public -private partnerships model depends on a clear understanding of why partners are
coming together, why their objectives cannot be achieved (or not as effectively) through any other
means, and why the benefits will outweigh the costs. In some cases this review process ends up in
a decision for a city to manage a pork and/or stadium on their own — as in the case of Denver
below. But in other cases a decision is made to create a partnership of some kind with the private
sector to enhance their resources and abilities. The first order of business for a partnership then is
to understand the mission and goals of the project or new enterprise and then outline in specific
terms what each partner will contribute in terms of resources, expertise and capability to help
achieve the mission and goals. There must be a mission, goals, governance structure and business
plan that allows the team to realize their joint vision.
Below is a summary of research on governance structures for five public park facilities that include
large sports or entertainment facilities and some guidance on what might work best in Miami for
Marine Stadium Park.
Background
In May of 201 2 the Miami City Commission entered into a Memorandum of Understanding with
the Friends of Miami Marine Stadium, Inc. (Friends) and the Miami Sports and Exhibition Authority
for a two-year period with the goal of developing a restoration and operations plan for use of
the stadium as a cultural and recreation site. In addition, the memorandum established a 1 3-
member steering committee to provide oversight over the partnership.
Two years later, in November of 2014, the Friends came before the Commission requesting
resolution to approve their proposed restoration and operating plan for the Stadium. The
Friends' plan proposed only one option for the city that centered on entering into a long term
lease with the Friends themselves to restore and operate the stadium, surrounding parkland and a
maritime exhibition center. The plan provided conceptual strategies for implementing the project,
which put the Friends at the helm of the project in partnership with the Heat Group, to help
manage the stadium. The City Commission rejected the Friends' plan.
There were a number of reasons for the Commission rejecting the plan but the key ones were that
there was no publicly vetted vision, mission and goals for the effort, no governance options and
that the project relied heavily on private sector financing rather than the philanthropic efforts the
Friends had originally proposed, limiting the availability for non -ticketed publicly accessible use.
In moving forward, any new plan for the stadium park should embrace and encourage a broader
community dialogue and multiple partnerships focused as much on the stadium as well as the site's
parkland in a form that makes sense for Miami. Partnerships can be critical for the management
strength they bring and the constant 'invention' that is needed to keep a stadium and its facilities,
including the park, working. And they will be critical to creating confidence and attracting
leadership in this effort.
Kathy Blaha Consulting, LLC
www.kathyblahaconsulting.com
Submitted into the public
Record for item(s) PZ. 3
on 05/14/2015, City Clerk
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A political and community engagement process is needed to get something started to meet the
expectations for the Boat Show in 2016, but in determining a structure in the short run, it will be
important to not limit the opportunities to innovate — around programs, revenue opportunities and
community connections — that can grow the value of this site and all its facilities and potential.
Such thinking requires risk and in order to attract leadership willing to take risks a governance
structure must be created that is flexible enough to provide for innovation and entrepreneurial
approaches to a business plan.
A Framework for Considering Governance Options
Funding and support for restoration of the Marine Stadium Park will be driven by confidence in
the governance of the site including its partnerships. Governance will also be important for
developing a business plan backed by a strong management team and a clear community vision.
In taking the time needed to demonstrate a well -considered decision process the city will more
likely attract the kind of leadership, public and private, needed for this effort.
A strong commitment by the city to do things well will serve to attract supporters, funders and
partners in a new kind of governance structure for Miami — private as well as public leadership
aligned by a joint mission. Critical to remember is that there is a direct connection between
improving governance and creating a strong financial position; therefore, it is essential to create
confidence in the new entity and some transparency about how it will work.
For this brief report, a series of case studies were reviewed to help determine lessons and best
practices from other cities. Parks and stadium projects chosen for review were the Rose Bowl in
Pasadena, California; Millennium Park in Chicago, Red Rocks Amphitheater in Denver, Navy Pier
in Chicago and Hemisfair in San Antonio, Texas.
Criteria for considering the case studies and their applicable lessons for Miami Marine Stadium
Park included:
• Who's at the table — roles and responsibilities
• What are the mission, goals and targeted outcomes
• How is governance structured with what leadership
• The balance of a role for the city with other private partners
• The relative independence and structure of a nonprofit partners' board of directors
• The degree of collaboration
Case Study Summaries
The Rose Bowl, Pasadena, California
Built in 1922, the Rose Bowl is a National Historic Landmark in Pasadena, California.
Substantially larger than Marine Stadium (6566 seats) the Rose Bowl (90,000 seats) is also
surrounded by over 250 acres of parkland. The Stadium, golf course and clubhouse are
operated by the Rose Bowl Operating Company (RBOC), a nonprofit founded by the City in
1 995; other properties are managed by City Public Works and Recreation Departments. The
Rose Bowl and surrounding property was operated as a city department until 1991. The mission
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of RBOC is to return economic and civic value to the City of Pasadena by managing a world -class
stadium and a professional quality golf course complex in a community based environment.
The RBOC operates the stadium but the city council retains authority over its budget; the partners
meet annually to review goals, budget and an annual plan. A nonprofit partner supports the
public operating corporation with philanthropic fundraising most of which goes to the stadium.
Golf course revenues support the park.
A new governance structure was proposed in an Urban Land Institute report a few years ago that
would supplant the various stakeholders and operators in the park with one umbrella nonprofit,
independent from the city. The proposal focused on the need for better coordination, the
identification of more revenue sources for the site, and a broader view of the site as a community
resource and historic site in addition to the stadium and golf course.
Red Rocks Amphitheater, Denver, Colorado
Red Rocks Park at 649 acres is owned by the city and county of Deriver though it resides in
neighboring Jefferson County. It was built with assistance from the National Park Service, the
Works Progress Administration and the Civilian Conservation Corps (CCC). The amphitheater
which seats up to 9500 is managed by the City's Arts and Venue department (the director is a
mayoral appointee), while City Parks and Recreation manages the park. An underground visitor's
center contains a museum, restaurant and gift shop.
The site retains much of its original character as built by the CCC in the late 1920s and the
amphitheater by 1941, and is currently a contender for National Historic Landmark status.
The City of Denver has always operated the site in addition to a handful of other facilities in and
around the city, giving it enough autonomy to run it "like a business." The city's operating teams
has a lot of leeway to develop business plans and contract with third parties with access to the
city attorney and other city resources as needed. The department's professional team has been
favorably compared to the best private event managers except their efforts and benefits go back
to the city. The small team manages a lot of function through contracts and leases.
The City handles all the management of the site, including maintenance. Contracts are used for
food and beverage, event staffing (ushers, parking), custodial services and concert promoters.
The City provides police and emergency services.
Contracts and leases are developed with multiple promoters — not just one — through an
arrangement with a ticketing provider. In their experience a sole promoter contract has not
proved competitive or to the city's financial advantage. (Los Angeles just resumed management
for the Greek Theater in Griffith Park from a private operator in April 201 5 for the same
reason.) The amphitheater is used every day often with multiple events in the day and in the
evening. A booking calendar and policies dictate how the multiple promoters compete for
calendar time.
Red Rocks with the city at the helm makes its budget annually (since 2007) through event
proceeds which include lease payments from the promoters, parking fees (collected by the
promoters through ticket fees) and taxes. In 201 4 Red Rocks grossed about $20 million in
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revenue with about $1 3 million in costs — enough funding to support park operations and throw
off additional funds for some of the department's other venues. $2 million in revenue comes from
sponsorship deals. There are no naming rights at Red Rocks. There is no philanthropic partner
supporting the city.
The ticket prices include a "seat tax" for facility development which goes into a fund for capital
projects; debt service comes out of this fund as well.
In addition to concerts — which occur every night throughout the summer months — the site is used
for high school graduations, weddings and other rental events. The site is open every day for
visitors who can tour the site, visit the museum, eat at the restaurants and hike in the park. The two
city agencies, vendors and promoters work seamlessly every day and most visitors don't realize
the coordination of efforts. In 201 4, close to 1 50 concerts took place in addition to other kinds of
events with over 750,000 visitors to the site. An evolving set of regulations are in place regarding
noise, concert curfews and traffic management.
Millennium Parkl Chicago, Illinois
Millennium Park (MP), which opened to the public in 2004, is 24.5 acres including a concert venue
— Pritzker Pavilion — with 4000 fixed seats and 7000 lawn seats. Although a City of Chicago
park, MP is not a park district park (Chicago Parks' District receives dedicated funding).
Originally an executive director reported to the Commissioner of Cultural Affairs and to the
Mayor's office tasked to develop an operations plan for the park; she stayed for four years to
help get the park up ancl running and helped to develop partnerships. The Deputy Commissioner
currently oversees the park's management with private partners.
A non-profit organization called Millennium, Inc. raised all the funds for the features in the park.
The city council gave Millennium, Inc. the approval and rights to raise funds and make agreements
with donors and artists for the features. The features however are owned by the city. Millennium
Inc.'s success was based on an aligned vision with the city and stellar civic leadership leading
fundraising efforts.
Other partnerships were built around programming: Chicago Symphony, Lyric Opera, Museum of
Contemporary Art, Chicago Dance Festival, Joffrey Ballet, cultural offices for consulates (touring
performers from home country), environmental groups, and the city's department of environmental
education to name a few. The success of privately raised funds allows many of the park's events
to be free to the public.
Communication is important so that no toes are stepped on regarding both fundraising and
calendar. The city department, foundation and operating partner talk to each other every day
with more formal bi-monthly meetings.
The City of Chicago contracts with a property management company that is responsible for the
physical plants and it holds the subcontracts for security, elevator maintenance, cleaning etc. There
are no city workers running operations in the park.
In 2008 the city council passed the Millennium Park ordinance creating a framework for the park
to operate somewhat independently and providing guidance for partnerships, vendors, user
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agreements and sponsorships — and providing that all revenues raised in the park stayed in the
park.
Chicago is one of the few cities where the city department of Cultural Affairs presents, produces
and promotes programming. The premise is that these events make the city a destination for
tourists and the economic benefit is huge. The park's operating budget is about $10 million.
Navy Pier/Soldier Field, Chicago, Illinois
The Navy Pier/Soldier Field site includes the stadium, Soldier Field, 30 acres of surrounding
parklands, and a 9.1 acre (400,000 SF) South Parking Lot Festival Area. The Chicago Park
District (CPD) owns the land; through state enabling legislation, CPD is a separate taxing body
and is able to issue its own bonds. Through a contract with CPD, Stadium Management Group
(SMG) manages, operates, and promotes the game day site for the Bears football games. It
receives a fee from CPD of approximately 2% of gross revenue.
Outside of the guaranteed game days for the Bears and with some minor exceptions CPD has the
exclusive right to use and occupy game day site. The SMG contract states that one of CPD's
goals for the game day site is to increase the number of events and their diversity, increase
revenue as well as to make the surrounding parklands available for public use. Events at the site
provide about 40% of the annual budget, with the remainder coming mostly from parking fees
and public funding. The Bears collect all revenue from concessions and merchandising on game
days. The CPD receives all concession revenues earned on non -game days as well as revenues
from concessions sold outside the game day site on game days.
CPD benefits from having contracts that state the roles and responsibilities of all the stakeholders
including the football team on game days. However, these formal agreements are also
supplemented through regular communication and coordination between the entities; the contract
outlines a schedule for communication regarding scheduling, and also requires monthly meetings
about routine maintenance.
Hemisfair, San Antonio, Texas
The original site of the 1968 World's Fair, Hemisfair is located in the heart of downtown San
Antonio, Texas. It is home to the iconic Tower of the Americas, Henry B. Gonzalez Convention
Center, Magik Theatre, Institute of Texan Cultures, Institute Cultural de Mexico, Universidad
Nacional Autonoma de Mexico and several historic structures, all with access to the River Walk.
In 2009, the San Antonio City Council created Hemisfair Park Area Redevelopment Corporation,
(HPARC) a local government corporation, to manage and oversee the redevelopment of Hemisfair
Park and its surrounding area. The vision for Hemisfair is to create a series of urban parks
surrounded by a mixed use neighborhood to support the parks' programs and operations.
The mission of HPARC is to expand the existing parks and to improve their quality. Its
responsibilities include acquiring property, planning, developing, constructing, managing,
maintaining and financing projects at Hemisfair. HPARC was founded on seven guiding principles
that guide all redevelopment decisions of the Hemisfair property: connectivity, development,
green space, balance, preservation, sustainability, and leadership. In addition to environmental
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and cultural sustainability, Hemisfair has a goal of being financially self-sustaining by the year
2020.
The plan for the 96-acre site is based on the HemisFair Park Area Framework Plan adopted by
the city council in 2011, which is predicated on the principles above that emerged from an
extensive public outreach process. The site is expected to include 19 acres of dedicated park
land, 2,000 units of multifamily structures, 3,000 parking spaces, a concert venue and plazas,
courtyards and commercial space.
HPARC is governed by an 1 1 -member board comprised of representatives from a cross-section of
local stakeholders. Board Members are approved by the San Antonio City Council to serve two or
four-year terms. The Hemisfair Conservancy works in partnership with HPARC to raise
philanthropic funds.
Recommendations
In addition to the historic Marine Stadium the project site possesses two key competitive
advantages that are unmatched in Miami. One is the spectacular views of the city skyline: The
stadium park is one of the only places in the city from which most residents and visitors can see
these views. The other is access to the water. Any plan for the site should recognize the value of
these two factors.
Three general models emerge from the case studies:
■ Parks and entertainment venues owned and operated solely by a city, with some
contracting of services, as in the case of Denver's Red Rocks Amphitheater.
■ Venues owned by the city and managed by the city through contractual agreements for
operations, maintenance and concert promotion as well as a philanthropic partnership for
fundraising.
■ Venues owned by the city with authority for management and operations conveyed to a
nonprofit corporation. In this last model there are multiple variations regarding board
structure and oversight — some more publicly controlled than others — and many operating
in partnership with an independent nonprofit corporation.
There are also parks operated almost solely by a nonprofit corporation under contract with a city
cis in the case of Central Park Conservancy in New York or Piedmont Park Conservancy in Atlanta
— or publicly -owned stadium or concert venues that are operated by a for -profit entity as in the
case of the Greek Theater in Griffith Park in Los Angeles, until recently. These partnerships
evolved over many years building capacity and trust in the partnership so as to convey almost
complete operational authority to the private partner.
Determination of a governance structure for the stadium and its parkland is likely to begin with
determining a mission for the site along with a business plan that can help realize the mission.
Will the project site be focused on the historic stadium with a business plan that is based on its
operation as an independent events venue? Should the business plan for the site include a
strategy for the surrounding park►and that broadens the mission of the site for community
programs and potentially additional revenue sources, including the proposed flex -park with its
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athletic fields and potentially, restaurants, museums and a visitor center? Or should the project
site be considered as two independent project sites with separate management plans?
In addition, if the stadium and park are considered separately, can they be sustained with
independent operating plans and funding sources? A clear mission, goals and a business strategy
will help in determining a governance structure, stakeholders and partners who can help to realize
the mission.
Initially, in this effort leadership will be more important than structure. As well, many of the case
studies show the importance of embedding a publicly owned stadium or concert venue or public
parkland with a sense of place with a mission that the public can embrace and that will attract
support and resources to the site.
One vision for the whole public space may offer more options for driving restoration and
management more quickly, engaging a broader and more diversified set of supporters. The
waterfront property with links to surrounding city and county parkland on Virginia Key, and its
proximity to downtown, provides an opportunity for the city to create a significant signature park.
If a broader vision for the property is not initially feasible then a stadium -focused business plan
will need a tightly -crafted mission to provide a sustainable funding strategy.
But first, the stadium park needs a champion — a voice speaking and advocating only for the
park. A public -private partnership for oversight will be essential regardless of the site's mission,
with a mix of prominent civic and public leaders committing to the site's restoration, management,
and sustainable operations.
In the short term, it may be that the city takes the lead with a number of key steps that set the
scene for developing partnerships including,
• Reviving and strengthening the site's steering committee
■ Developing ci clear mission and a business plan to implement it
■ Issuing a request for an expression of interest for a private entity to partner with the city
in developing a restoration plan for the site
• Creating a process for public engagement particularly with the park's neighbors
■ Activating the site with programs and opportunities for public access
A mere advisory or steering committee will not be a strong enough entity to play the role of a
champion but it will lead the way for one to be found. In addition, the existing Friends group
could be internalized within a larger non-profit entity that can play not only a fundraising role
but a management role. In the short term the city may also choose to manage the site through an
existing department — with guidance through a special ordinance as in the case of Millennium
Park or through an appointee of the mayor.
In the long run the city is likely to develop a hybrid of one of the governance models studied — for
example a nonprofit corporation created by the City of Miami where the Mayor and/or City
Commission approves the charter and appoints the board of directors, but is hands -off for day-
to-day operations; or a more independent organization under contract with the city. In either
case, the social enterprise could operate as a private business guided by agreements with the
city.
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The model of a strong public partner is most familiar to the city through its experience with
Bayfront Park. Yet Bayfront Park has also been limited by a governance framework that relies
heavily on the city for its governance without any public operating funds. In addition, the Zack of
a private partner — or park conservancy — has meant little or no philanthropic support. With no
public operating or philanthropic funding, revenue streams for the park have been limited to
event sponsorship and related revenue which has meant an increasing reliance on park closure
days for ticketed events.
Public parks and venues primarily survive on four types of funding and the goal of a governance
structure for the stadium park site should be to take full advantage of each as local conditions
allow:
• Public baseline funding: Almost all public parks and venues are guaranteed at least a
base of public funding — annual and/or capital funding. In general, that base is necessary
to secure other, alternative sources of supplementary funding.
Value Capture: Value capture mechanisms presume that a park will benefit the
surrounding area and increase land values. Through (generally) self-imposed fees or taxes
based on geography, assessment districts can help to raise operating funds for parks. This
is not a likely scenario for the Marine Stadium Park given that surrounding uses are not
expected to be developed into commercial and residential uses.
Value capture can also mean creating the ability for the city and its partners to take
advantage of tax credits as in the case of historic tax credits that the stadium might use if
it seeks nomination to the National Park Service's National Register of Historic Places. The
federal historic tax credit encourages private sector investment in the rehabilitation and re-
use of historic buildings. These tax credits can also be syndicated — or made available to
qualified investors — so as to leverage their value and create a revenue stream for the project
that relies on it creating business benefit for a private operator. These one-time funds could be
used for capital expenses to renovate the stadium
■ Earned income: Operating revenue from earned income can come from a variety of
sources, including concerts, concession sales, events, and user fees. Much of what
determines a venue's ability to earn income is its design, permanent facilities, and
programming. The Hemisfair in San Antonio as well as Brooklyn Bridge Park in New York
are examples of income earned by the conveyance of limited development rights — most
often mixed use development — through a long-term lease that can provide ongoing
revenue. Smaller scale examples include restaurants, visitor centers, museums and bicycling
centers.
Much remains to be explored regarding how the stadium park site could develop revenue
streams in addition to ticketed events at the stadium. The iconic and historic site, outside
structured events, could also use its history to attract day-to-day visitors. Yankee Stadium
in New York, Cowboys Stadium in Dallas, the Louisville Slugger Museum in Kentucky, and
Lambeau Field in Green Bay, Wisconsin, all have tour programs that generate substantial
revenue. The Lambeau Field tours regularly generate upward of $800,000 in revenue.
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■ Contributed Income: Most downtown signature parks receive some form of annual funding
from philanthropy focused on community benefit. Donors are increasingly interested in
matching their support and dollars to a strong public vision, clear community benefit and
baseline city support.
Together a city and a private partner — with a single -purpose mission — can be more nimble in
decision -making. The ultimate responsibility for management and any economic shortfalls will
always belong to the city as the property owner — therefore it will be important to establish a
feasible business strategy and a strict accountability plan detailed in a contractual arrangement —
yet the day-to-day and strategic decisions can lie with a private nonprofit partner.
Together, the city and its emerging private partners will need to take responsibility for:
Creating a new leadership plan that unites vision with action
A first step for the city — through an enhanced steering committee or new task force — is to
develop a clear mission statement and set of quantifiable public goals that create a clear identity
for the project site. It will need to recognize the history of the stadium but acknowledge that the
property may offer other opportunities in this new day and age as a multi -use facility. In order
to attract the broadest support, the steering committee should actively re-engage with supporters
and other stakeholders to get organized.
Steering Committee responsibilities should include:
■ Recruiting board members for a new nonprofit corporation that will partner with the city
and be a champion for the cause
■ Establishing a mission and set of goals for the organization
■ Developing a business plan
■ Selecting an executive director (with the new non-profit organization's board of directors)
Developing a business plan
A business plan created before fully engaging a private stadium operator will create clarity
about needs and expectations from the start around both operating and capital needs. The plan
should also be `politically smart' in looking at start-up projects which can both create robust
revenue streams and engage the community around the project. The right partner, even at an
early stage, can contribute to project operating strategies.
A new nonprofit corporation and its executive director can partner with the city to take
responsibility for developing a plan for managing the stadium, souvenir shop, small restaurant,
visitor center, and other potentially related facilities, including the flex -park, ensuring a full
schedule of activities at the site that benefits the public.
Together the city and the new nonprofit can request an Expression of Interest (EOI) for operating
the stadium to attract those with capacity, interest and a willingness to work in the public interest.
An EOI is a multi -staged process for shortlisting potential partners in the absence of a complete
understanding of the city's needs and the respondent's capabilities. It is a useful way to explore
what kinds of partnerships are possible — with entities that can blend private solutions for
restoration and operation with public benefit goals.
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Denver's example shows the opportunity of a nonprofit to work with the city under an open
contracting system — not an exclusive contract — allowing for a more competitive strategy to
choose among multiple ticketing purveyors for scheduling events. This and other business
strategies can be vetted by the steering committee as it completes its business plan.
The city should begin work on governance and operations planning earlier than later while it is
working on fundraising and construction; the City of Chicago, for example, regrets that it did not
have someone onboard a year prior to opening Millennium Park. Public -private collaboration
throughout all project stages is key and it is not easy.
A thoughtful business plan requires a pragmatic understanding of what is feasible in a constantly
evolving political and cultural environment. The business plan should strive to align private
partnerships with public goals as well as understand what will make this project appealing to
private sector investors. Public -private partnerships are not easy money; they require finding
durable and resilient funding strategies that will sustain the stadium park over the long-term.
They also require sharing a vision, developing a trusting relationship and thinking outside the box
regarding management and resources.
Restoring, operating and maintaining the project site
The need for restoration of the stadium has been well -documented but a business plan for the site
should also recognize that the stadium sits inside a park. There may be ways that a larger vision
for the site can drive the stadium restoration and reuse with programs, events and activities in the
surrounding park. A restoration and management plan for the property needs to focus not only
on restoring one of the city's most iconic buildings but also re -opening the waterfront property
surrounding it for public accessibility. Insist on quality in restoring the stadium — which may
happen over time — while slowly overseeing a management plan that can immediately attract
public use and support, and complement the vision for the stadium.
There are both local and national partners interested and able to provide guidance both on the
reviving the historic structure — including taking advantage of tax strategies. The National Trust
for Historic Preservation and the locally -based Dade Heritage Trust are two. The City of Miami's
Parks department — in partnership with the many recreation, environmental and park user groups,
including The Trust for Public Land — can assist with developing strategies for use of the site's trails
and waterfront parkland.
While focusing on readiness for the boat show, community outreach can be used to address
questions of how to use the site for the rest of the calendar year. Starting with the stadium park's
neighbors including the University, the MAST Academy, Seaquarium, Crandon Park and the City
of Key Biscayne the steering committee needs to identify ways to activate the site to engage and
grow support for the project.
Balancing the business and public interest mission
In order to become a financially viable venue and at the same time, a meaningful community
asset available to the public every day, the stadium park will not only need to attract large
sporting and entertainment events but it will have to attract non-event day opportunities to use
the site every day; all the case study sites are open every day for some kind of public use.
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The partnership will need to generate awareness and a positive view of the stadium park with
programs that can attract local residents and tourists such as the hundreds of bicyclists who ride
past the site every day. Year-round innovation and unique programming can ensure high levels of
foot traffic through the stadium park. The stadium park is not only a potential economic engine
but a shared community icon on the city's waterfront and it should be recognized as such in the
mission, business plan and project communications.
A stadium park with multiple uses is inherently a complex management challenge that will require
significant public engagement to ensure that partnerships and plans align with local vision and
goals — and that they are executed at the highest standards possible. The goal in the start-up
phase for the site is to gain broad community consensus for the mission of the site that can guide
its use as some combination of civic space, public park and historic stadium.
Next Steps
A. Assign a staff member to take the lead with a new or re -constituted steering committee.
Steering committee membership should, at a minimum, include members or their designees
representing:
• the Mayor of Miami (1)
• the Miami City Commissioners (5)
• the City Manager (1)
• the City of Key Biscayne (1)
• the Miami -Dade County Commission (1)
• the Dade Heritage Trust (1)
• the National Trust for Historic Preservation
• the Friends of Miami Marine Stadium (1)
• the Trust for Public Land (1)
B. The steering committee's charge should to:
(1)
• Create principles or a set of values to guide decisions around public access & use,
historic preservation, parkland use, design integrity, insistence on quality, conservation,
financial viability, etc.
• Develop a mission statement and goals for the project that can galvanize public
interest and serve as the basis for requesting EOIs and RFPs.
• Draft a business plan that can shape a request for an EOI.
• Recruit leadership and start-up funding for a new nonprofit organization to partner
with the city to identify ways to manage the project site.
• Develop a public outreach effort regarding use of the site's parkland.
• Develop a marketing/fundraising plan for the partnership, using the boat show to
launch plans and fundraising for the site.
In creating the steering committee it will be important for the city to convey its support for a
culture that embraces partner relationships and facilitates a collaborative project team. Setting
up a new governance framework is meaningless without cultural change within government — and
often in the private sector as well — to make collaboration work and that will take time.
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The key to building an effective stadium park partner — and, earning donors' confidence — will be
in giving the nonprofit partner both fundraising and management power. Many American cities
now have so-called park conservancies that are really just fundraising vehicles for city parks
departments, without any design or operations power. "That's not really a conservancy," says
Peter Harnik of the Trust for Public Land. "That's just business as usual."
City parks and their entertainment venues that have the potential to attract tourists and new
business for a city require the greatest annual investment. Their landscapes and structures are
usually more costly to maintain, their locations require the highest standards of care on a daily
basis, and investment in attracting or producing frequent programming and events is required to
meet budget and sustainability goals.
The number one mistake communities make is to 'just start doing stuff' borrowed from other cities.
It is Miami's unique culture, geography and stadium history that will shape the strategy for the
stadium park. A strong commitment by the city to do things well will serve to help the stadium
park succeed more than anything else. A lack of funds is most often cited as the reason that these
public projects remain on the shelf but more often the reason is Tess about the lack of funds and
more about the priority of the idea.
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