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04-20-1999 Workshop Meeting City of Aventura City Commission Workshop Meeting April 20, 1999 Following Special Meeting at 9:00 A.M. Executive Conference Room 1. 2. 3. 4. Menda Cultural Arts Center Land Development Regulations Council of Mayors (Mayor Snyder) Other Business Next Workshop - May 24,1999 -9:00 A.M. 179th Street Crossing Thunderboat Alley (Commissioner Perlow) In accordance with the Americans with Disabilities Ad. of 1990, all persons who are disabled and who need special accommodations to participate in this meeting because of that disability should contad. the Office of the City Clerk, 305-466-8901, not later than two days prior to such proceeding. CITY OF AVENTURA OFFICE OF THE CITY MANAGER MEMORANDUM FROM: City Commission ?: Eric M. Soroka, Citrrage April 1, 1999 TO: DATE: SUBJECT: Proposed Cultural Arts Center Action Plans */:C BACKGROUND Over the past several months, support for the construction of a Cultural Arts Center (CAC) has increased among the City Commission since the purchase of the Huber Tract. The construction and financing of a Cultural Arts Center takes time to implement and requires preplanning and coordination with our Capital Improvement Program (CIP). I am in the process of updating the City's five-year CIP. In order to finalize the document, certain basic issues need to be resolved regarding the proposed Cultural Arts Center. This report has been prepared to review the various issues and alternatives relating to the construction of a CAC and provide the necessary information for the City Commission to make informed decisions regarding this matter. At this point, I am requesting d'rection as to which action plan sh luld be further studied for i'lclusion in the CIP document. ISSUES 1. Property I Location - The proposed site for the CAC is the Huber Tract which is located on the Intracoastal at the end of N.E. 188th Street. The site is approximately 3.2 acres. The access into the property is from N.E. 188th Street (Thunderboat Alley). The 1998/2002 CIP contains $1,000,000 for drainage and roadway improvements to N.E. 188th Street scheduled for Fiscal Year 2001/2002. Currently, the roadway does not provide an attractive entranceway to the site. This may change over the next two years as we adopt stricter zoning regulations for the industrial properties and the planned improvements to the roadway. In performing our research regarding the CAC, additional property will be necessary in order to provide adequate parking for the facility. It is anticipated that at least two additional acres should be acquired, either west or south of the site. This will provide about five acres of buildable area for the facility. 2. Buildina Reauirements - Based on preliminary research, it is recommended that the facility be constructed for 900 seating capacity and be sized for a maximum of 25,000 square feet. 3. Cost - A ballpark estimate for the construction of a first class facility including seawall construction and site restoration is $5,500,000. The proposed project budget is as follows: Design Cultural Arts Center Land Purchase $ 500,000 $5,500,000 $2,000,000 $8,000,000 Total Cost 4. Fundina - Funding for this project should be obtained from several different sources including the general fund, long-term debt, bond issue, grants and community foundation donations. Several different funding options are reviewed in the Alternatives section of this report. 5. Operatina Costs - A detailed budget estimate outlining the costs associated with operating the facility would be required to determine the fiscal impact on the operating budget. Typically, cultural arts centers, by utilizing user fees, offset a portion of the operating costs. It is recommended that the operations be privatized in order to reduce the City's risk and provide cost-effective services or placed under the authority of a foundation that could raise private funds as well. 6. Community Support - The construction of a CAC is a significant investment by a local government toward the enhancement of quality of life issues of a community. A CAC will provide a community facility that can house numerous cultural events, plays, concerts, shows and art displays. As shown, the cost of construction and the ongoing maintenance and operations of the facility is expensive and will have an impact on future budgets. Therefore, it is important that the City secure strong community support for the facility in order to ensure its ongoing success. Community support could be achieved by utilizing a referendum for the approval of the long-term debt and the utilization of a private foundation to raise funds to potentially offset the cost of construction (i.e., $1,000,000). 7. FundinCl Alternatives - The following are proposed funding alternatives that could be adopted by the City Commission for inclusion in the CIP document as a method of implementing the construction of a CAC: Alternative 1 : Assumptions: a. Condemn or purchase additional two acres of land. Utilize $1,000,000 from Safe Neighborhood Grant Program to offset purchase of property. Balance of $1,000,000 purchase price paid from general fund. b. Utilize $1,000,000 from private donations to offset construction costs. c. Utilize $500,000 of general fund monies to assist in funding project. d. Request voter approval of $4,500,000 General Obligation Bond whereby Debt Service would be paid from a 4.6% tax increase. Debt Service Costs would be approximately $315,000 annually. Fundinq Schedule Source 1999/00 Purchase Land $2,000,000 General Fund $1,000,000 Grant $1,000,000 September 2003 Design Project $ 500,000 Reserve Funds $ 250,000 Reserve Funds $ 750,000 Construction $4,500,000 Completion General Fund Private Donations 2000/01 2001/02 Private Donations 2002/03 G.O. Bond Annual cost to taxpayer beginning in FY 2003/04 assuming $250,000 assessed value: $23.00 Alternative 2: Assumptions: a. Condemn or purchase additional two acres of land. Utilize $1,000,000 from Safe Neighborhood Grant Program to offset purchase of property. Balance from general fund. b. Utilize $1,500,000 of general fund monies to assist in funding project over two years. Partially offset costs with a 4.6% tax increase in FY 2002/03 & 2003/04. c. Issue a $4,500,000 Revenue Bond issue whereby Debt Service would be paid from a 4.6% tax increase beginning in FY 2003/04. Fundinq Schedule Source 1999/00 Purchase Land $2,000,000 General Fund $1,000,000 Grant $1,000,000 2000/01 Design Project Reserve Funds $ 500,000 $ 250,000 $ 750,000 $4,500,000 General Fund General Fund 2001/02 Reserve Funds Guneral Fund 2002/03 Construction Revenue Bond September 2003 Completion Annual cost to taxpayer assuming $250,000 assessed value: 2002/03 - $46.00; 2003/04 - $46.00; thereafter - $23.00. Alternative 3: Assumptions: a. Condemn or purchase additional two acres of land. Utilize $1,000,000 for Safe Neighborhood Grant Program to offset purchase of property. Balance from General Fund. b. Issue a $7,000,000 Revenue or G.O. Bond whereby Debt Service would be paid from a 6.5% tax increase. Debt Service Costs would be approximately $490,000 annually. - -The amount of the bond issue could be reduced by utilizing reserve funds from the general fund. Each $1,000,000 in debt requires a $70,000 debt service payment. Each 1 % of a tax increase generates about $70,000. Annual cost to taxpayer assuming $250,000 assessed value and 2.3850 tax rate: $36.00. SUMMARY Based on a review of the alternatives, the City Commission should consider either Alternatives One or Three. However, to ensure community support for the long term investment in cultural activities, Alternatives One, Three or a method utilizing a referendum should be considered for the Action Plan, due to the potential tax rate increases that would be required to fund the program. EMS/aca CC0736-99 J:rom. To. Eric Soroka. City of Avenlura4f18/99 Dale: 4/18/99 Time. 2.47.12 PM Page 1 of 1 Subject. Emergencyordinance For Information. call numbers below To: From: Date: Subject: CITY OF AVENTURA OFFICE Of THE CITY COMMISSION MEMORANDUM Eric Soroka City Manager Patricia Rogers-Libert Commissioner April 18, 1999 Emergency Ordinance - Section 10-1 Of City Code As I will be unable to attend Tuesday's meeting, due to the critical illness of my father, I want to follow up on our conversation regarding the proposed emergency ordinance amending Section 10-1. This will permit owners to un- leash their dogs in the southern portion of the park from 5:00 PM to dusk. I support passage of this ordinance. However, I believe it should be proc- essed as a regular ordinance and require a first and second reading. There- fore, I request that Tuesday, April 20, 1999 serve as a first reading, and the public heoring and second reading be scheduled for our May meeting. Thank you. c: Mayor & Commission LAND DEVELOPMENT REGULATIONS ADOPTION PROCESS TENTATIVE SCHEDULE April 20, 1999 Review Workshop May 4, 1999 May 10, 1999 Community Meeting - Staff Review Workshop June 1,1999 1 st Reading Adopting Ordinance 2nd Reading Adopting Ordinance June 29, 1999 CITY OF A VENTURA Ordinance 96-09 Disclosure of Verbal Contact Agenda Item: Item No. of 199!.L agenda of the Aventura City Commission. A /.Ii I !}O . /?, - J Date of Verbal Communication: 1jM""! 11 1'i'1f Identity of eerson or EntLty Making Communication: 1)14 jI./ C /{' /0/11 A /1/ /' Subject and Substance of commun~tion: ~1t!:;-:- ~/~-~ /rJA ~p--~~~ Respectfully, Filed this ~ day of Commission or Board Member Receiving ommunication: . / . ~ c:I /,z /!? C'7/! C- Name, ~ Sign~~~~/q~/-? ,~9 9? . CL Clerk I Secretary rl0rJl .0 i:.I,c.:;:'uI0Ka ....l~OIK"t'rllUr<:l'lIIOI'::J'd Uale.411ol'::J'::J ,Ime...!'!! I","'-Ivl f-'age 1011 ,;;:,uDJect t:rnergenc~oramance r;::;rmiOrm<lllon.califlumberSbeIO"-', To: From: Dote: Subject: CITY OF AVENTURA OFFICE Of THE CITY COMMISSION MEMORANDUM Eric Soroko City Monoger Patricia Rogers-Libert Commissioner April 18, 1999 Emergency Ordinance - Section 10-1 Of City Code As I will be unable to attend Tuesday's meeting, due to the critical illness of my father, I want to follow up on our conversation regarding the proposed emergency ordinance amending Section 10-1. This will permit owners to un- leash their dogs in the southern portion of the park from 5:00 PM to dusk. I support passage of this ordinance. However, I believe it should be proc- essed as a regular ordinance and require a first and second reading. There- fore, I request that Tuesday, April 20, 1999 serve as a first reading, and the public hearing and second reading be scheduled for our May meeting. 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