C7C - Fund Terrace at North Shore

Resolutions - C7 C

C7 C A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT THEIR OCTOBER 15, 2025 MEETING TO FUND THE TERRACE AT THE NORTH SHORE TENNIS CENTER IN THE AMOUNT OF $350,000 UTILIZING CAPITAL RESERVES, TO INCLUDE FUNDING IN THE FIRST AMENDMENT TO THE FY 2026 CAPITAL BUDGET AT THE DECEMBER 17, 2025 COMMISSION MEETING AND FURTHER DIRECTING THE CITY MANAGER TO NEGOTIATE AN EXTENSION TO THE TENNIS MANAGEMENT AND OPERATION AGREEMENT. Applicable Area:

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution.

BACKGROUND/HISTORY

The Miami Beach North Shore Park Restroom Facilities (Project) is a new building adjacent to the North Shore Park Tennis Center that includes new restroom facilities for general park users within the proximity of the fields, and a shell space intended to be used as a future concession space. This new facility is designed to be entirely ADA compliant/accessible and includes LED lighting, and new landscaping. The shell space was designed with glass walls to allow viewing of the tennis courts to the east.

Lee Construction was the selected contractor and construction began in May 2024. The restrooms reached substantial completion on August 29, 2025, and have since been opened to the public. However, while the shell space has been completed, it has not yet achieved substantial completion due to the pending exterior improvements on the east side of the building. In order to obtain substantial completion of the shell space and close the building permit, the contractor must complete the construction of the egress ramp, and railings, from the shell space to the tennis court level.

In December 2024, the Parks and Recreation Department received a request from Van Daalen Tennis, LLC. (Operator), the operator of the Miami Beach Tennis Center, to add a terrace area on the east side of the future concession space. In January 2025, the Office of Capital Improvement Projects (CIP) received an updated request from the Operator to expand the requested terrace to accommodate an enlarged outdoor seating area for the future concession space.

On April 8, 2025, the North Beach Community Redevelopment Agency (CRA) Advisory Committee recommended that the CRA allocate up to $350,000 toward the enhancement of the Project’s current scope. The CRA funds would support the completion of facility enhancements, including, but not limited to, structural improvements, expansion of the terrace area and additional lighting, relocation of the ADA ramp, and other related work to accommodate the requested outdoor seating area.

On July 8, 2025, the City Attorney’s Office (CAO) determined that the CRA funds could not be used for this work, pursuant to Section 163.370(3)(b), of the Florida Statutes, since CRA TIF Revenue cannot be utilized for ”the installation, construction, reconstruction, repair, or alteration of any publicly owned capital improvements or projects if such projects or improvements were scheduled to be installed, constructed, reconstructed, repaired, or altered within 3 years of the approval of the community redevelopment plan...” While the CRA Advisory Committee and City staff were working under the interpretation that the request for the additional outdoor terrace was an added and independent scope to the Project, the CAO clarified that this work fell within the three-year prohibition and met the definition of an alteration to an existing capital project.

City Staff had discussions with the operator and the Parks and Recreation Department to clarify the scope being requested and associated costs. The additional scope requested include; 1) An expanded terrace along the east face of the shell space, 2) additional lighting as required by code, 3) additional railings along the new terrace, 4) modification of the existing roof ladder, 5) design and installation of a grease trap system and 6) alteration and installation of the ADA required ramp (Exhibit A).

City staff reviewed the above scope with the consultant and contractor and developed an estimated total budget of approximately $350,000, including design, permitting, fees and construction costs.

ANALYSIS

At the September 3, 2025, Commission meeting, the City Commission referred item C4 H, sponsored by Commissioners Magazine and Bhatt, to the Finance and Economic Resiliency Committee (FERC) to discuss options for funding the design and construction of a terrace at the North Shore Park Tennis Center.

During the regularly scheduled FERC meeting held on October 15, 2025, City staff presented the item for discussion and provided a summary and update of the current status of the Project. The Operator also informed the FERC of their intent to complete the build-out of the café space, at their own expense, in order to provide the intended café offerings contemplated in the Management and Operation Agreement (Agreement), further requesting that the City offset the costs of the build-out by funding the additional scope outlined above.

City staff advised that funding had been identified for the terrace and grease trap and that a capital budget amendment would be presented to the City Commission at its next meeting. To support the Operator in recovering the costs associated with the interior build-out, the FERC discussed the possibility of extending the Operator’s Agreement with the condition that the Operator will fund the build-out of the café space at the North Shore Park Tennis Center.

Ultimately, the FERC passed a motion to return the item to the City Commission, with a favorable recommendation to fund the additional scope at the North Shore Tennis Center in the amount of $350,000, utilizing Capital Reserves, to allocate funding in the first amendment to the FY 2026 Capital Budget at the December 17, 2025 Commission meeting, and further directing the City Manager to negotiate an extension to the Management and Operation Agreement.

FISCAL IMPACT STATEMENT

The additional funding required for the design, permitting, and construction of the terrace at the North Shore Park Tennis Center is in the amount of $350,000, subject to approval of the First Amendment to FY 2026 Capital Budget.

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

$350,000 Subject to approval of the First Amendment to FY 2026 Capital Budget

CONCLUSION

The Administration recommends that the City Commission adopt the Resolution.

Applicable Area

North Beach

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Capital Improvement Projects

Sponsor(s)

Commissioner Joseph Magazine Commissioner Tanya K. Bhatt

Co-sponsor(s)

Condensed Title

Accept Recommendation/Fund Terrace at North Shore Tennis Center. (JM/TB) CIP