C7C - Grant for Collins Park Cultural Facility

Resolutions - C7 C

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission adopt the attached Resolution authorizing the negotiation, preparation, and execution of a General Obligation Bond for Arts & Culture (GOBAC) Grant Agreement with Miami New Drama, Inc. (MiND), in connection with the amendment of the City’s lease agreement with MiND for the Collins Park Cultural Facility. The lease amendment is being considered under a separate companion item.

The Grant Agreement will:

1. Formalize the City’s approved $7.604 million GOBAC allocation as a project grant to MiND. 2. Establish clear procedures for construction management, budgetary controls, and performance standards, consistent with the Term Sheet approved under Resolution No. 2025-33710. 3. Incorporate safeguards that, together with the Lease Amendment, protect the City’s financial investment, including disbursement controls, documentation standards, cross- default provisions, and other elements typically found in a work letter agreement.

BACKGROUND/HISTORY

Project Origin

In January 2021, through Resolution No. 2021-31568, the City Commission waived competitive bidding to accept an unsolicited proposal from MiND for the buildout of approximately 16,000 square feet of ground floor space in the City-owned Collins Park Garage. MiND’s proposal envisioned transforming the space into a primary performance venue and headquarters, including

a 200-seat black box theater, rehearsal and administrative spaces, dressing rooms, and ancillary commercial uses such as a restaurant/café.

In October 2021, the City Commission approved the initial Lease Agreement (Resolution No. 2021-31914), under which MiND funded design services while the City assumed responsibility for financing and managing construction.

GOBAC Funding Enhancement

In November 2022, Miami Beach voters approved the GOBAC Program, increasing the City’s allocation for the project to $7.67 million. The funds were formally appropriated in July 2023 (Resolution No. 2023-32713).

Transition to Tenant-Led Delivery Model

In August 2024, MiND proposed shifting construction management from the City to the Tenant, converting the City’s financial contribution into a GOBAC Program grant. This proposal was reviewed and recommended by the Finance and Economic Resiliency Committee (FERC) in November 2024.

On June 25, 2025, the City Commission adopted Resolution No. 2025-33710, approving a Term Sheet authorizing the proposed changes and directing the preparation of companion agreements: a Lease Amendment and a corresponding GOBAC Grant Agreement. The lease amendment is being considered by the City Commission under a companion item.

ANALYSIS

The Collins Park Cultural Facility is envisioned as a cornerstone of the Collins Park Cultural District, offering year-round performances, educational programming, and community activations. Transitioning to a grant-based funding model reflects a shift from City-managed construction to a tenant-led delivery structure, aligned with MiND’s track record at the Colony Theatre.

Key Elements of the Grant Agreement

• •

Risk Mitigation: Reimbursement protocols, compliance reporting to safeguard City funds.

• •

Design Oversight: City approval of design milestones at 30%, 60%, 90%, and final construction documents.

• •

Construction Controls: Required use of a Construction Manager at Risk (CMAR) with a Guaranteed Maximum Price (GMP) to control costs.

• •

Value Engineering: Identification of discretionary budget elements to allow for cost adjustments if needed.

• •

Disbursement Procedures: Incremental grant disbursements tied to verified work completion and City approval.

• •

Cross-Default Protections: Contractual linkage of the Grant Agreement to both the Lease Amendment and the Colony Theatre Management Agreement, to ensure continued performance across MiND’s obligations.

These provisions aim to balance efficiency and accountability, granting MiND autonomy to manage construction while ensuring the City retains oversight of budget, schedule, and quality.

FISCAL IMPACT STATEMENT

documentation standards, and

The City’s financial contribution to the Project is $7.604 million in GOBAC funds (already appropriated). MiND is responsible for architectural and engineering services, estimated at approximately $250,000.

Safeguards and Reserves

• • •

A 10% holdback of grant funds will be retained by the City until project completion. 5% contingency reserve is built into the GMP. All disbursements require City approval to ensure alignment with the approved budget and milestones.

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

N/A

CONCLUSION

The Collins Park Cultural Facility represents a transformative investment in Miami Beach’s arts and cultural infrastructure. Converting the City’s GOBAC allocation into a structured Grant Agreement, with robust safeguards, supports MiND’s ability to deliver the project efficiently while protecting public resources.

The Administration therefore recommends that the Mayor and City Commission adopt the attached Resolution, authorizing the negotiation, preparation, and execution of the GOBAC Grant Agreement with Miami New Drama, consistent with the approved Term Sheet and subject to legal review by the City Attorney.

Applicable Area

South Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? Yes

If so, specify the name of lobbyist(s) and principal(s): Miami New Drama, Inc. / Nicholas Richberg

Department

Economic Development

Sponsor(s)

Co-sponsor(s)

Condensed Title

Approve G.O. Bond Art and Culture Grant Agreement, Miami New Drama Collins Park Cultural Facility. ED

Previous Action (For City Clerk Use Only)