Legislative Matter

Miami-Dade Legislative Item
File Number: 112624

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Clerk's Official Copy

File Number: 112624

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-158-12

Control: Board of County Commissioners

File Name: TRANSFER TITLE OF COCONUT GROVE PLAYHOUSE PROPERTY

Introduced: 12/15/2011

Requester: NONE

Cost:

Final Action: 2/7/2012

Agenda Date: 2/7/2012

Agenda Item Number: 11A10

Notes:

Title:

RESOLUTION DIRECTING THE MAYOR OR MAYOR’S DESIGNEE TO NEGOTIATE AND PRESENT AGREEMENTS TO THIS BOARD FOR ITS APPROVAL TRANSFERRING TITLE OF THE COCONUT GROVE PLAYHOUSE PROPERTY TO THE COUNTY AND ELIMINATING ALL LIENS AND ENCUMBRANCES THEREON

Indexes:

COCONUT GROVE PLAYHOUSE

Sponsors:

Xavier L. Suarez, Prime Sponsor

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	2/7/2012	11A10	Adopted				P
REPORT:	Upon inquiry by Commissioner Sosa regarding the County’s fiscal responsibility, Mr. Michael Spring, Director, Department of Cultural Affairs, responded there were $5 million in Convention Development Tax (CDT) backed bonds that were issued and a $15 million item in the General Obligation Bond (GOB) program. Commissioner Sosa requested clarification as to why Coconut Grove Playhouse wanted to transfer the property to Miami-Dade County and not the City of Miami. Mr. Spring explained the Coconut Grove Playhouse Board requested the property be transferred to the County because the Cultural Affairs Department had future vision for what should be done at the property and also had the resources to achieve that vision. He noted the County had $20 million in funds to be committed to the capital project. In response to Commissioner Sosa’s inquiry as to who would be responsible for the operational costs and maintenance of the Playhouse, Mr. Spring responded that a plan submitted to the County Commission last year recommended management of the property be contracted out. Commissioner Sosa commented on outstanding issues that existed at the Miami-Dade County Auditorium and Coconut Grove Playhouse and expressed concern that county general funds would be used to maintain the property. Mr. Spring clarified a non-profit organization was willing to accept the responsibility for the maintenance and operation of the Playhouse. He noted due to the current condition of the Playhouse, significant capital work needed to be done before the theater was operational. He further explained the County had the expertise to perform the capital project and Gable Stage, a non-profit theater company, had the expertise to operate the property once it was renovated and restored. Upon inquiry by Commissioner Sosa as to the number of citations that were issued at the Playhouse location, Mr. Spring indicated the City of Miami issued five code violation citations on the property, many of which the Coconut Grove Playhouse Board were contesting. He opined they were minor citations such as graffiti on the building and, in conversations with the City, they indicated a willingness to work with the County on the citation issues. Mr. Spring also explained there were liens on the property and the County Attorney’s office assisted the Cultural Affairs Department with a property title search. He noted this proposed resolution would enable the department to review the lien issues more closely and bring back an assessment and recommendation to the County Commission. Mr. Spring expressed confidence that the property’s citation issues with the City of Miami would be resolved and opined that the $20 million committed to the capital project was sufficient to restore the Playhouse and that amount would not be exceeded. Commissioner Sosa stressed the importance of protecting the County’s investment and expressed concern with accepting other responsibilities that could translate into costs to the general fund, particularly at a time when employee’s salaries were being cut to balance the budget. She requested assurance that this project would not incur additional expenditures from the County’s general fund. In response to Commissioner Bell’s inquiry regarding the need for the acquisition of another Playhouse in the County, Mr. Spring indicated there was a need for a flagship theater and spoke about the gap created in cultural offerings to the community due to the Playhouse’s inactivity. Mr. Spring explained the proposed renovations called for a smaller venue of less than 1,000 seats. He noted the proposal that would be brought back to the County Commission would clear up the title and allow development of plans. He stated a strategic plan outline submitted to the County Commission last year, called for a smaller theater to be operated under contract with Gable Stage and would be updated and presented to the County Commission when recommendations on the title were presented. He noted an estimate of annual operating costs would be included in the proposal and staff was currently working with Gable Stage to identify those costs. Commissioner Bell asked Mr. Spring to present the County Commission with an updated outline of the strategic plan for the Coconut Grove Playhouse, including estimated annual operating costs for a new theater.. Commissioner Heyman commented on how important the Coconut Grove Playhouse was to the local arts community and asked if staff had a full understanding of the financial encumbrances, liens, and claims associated with the Playhouse. Mr. Spring replied that as a result of the title search, aside from any conversations with the claim or lien holders, the negotiated payout would be approximately $2 million which included any potential claims and/or pending lawsuits. Mayor Gimenez clarified the $2 million consisted of a $1.5 million mortgage, a $350,000 lawsuit, $40,000 in judgments, and $25,000 in unpaid taxes and city liens. Commissioner Barreiro supported this proposed resolution and opined that the County should be the proprietor of countywide cultural venues. He suggested staff look into housing a resident company at the Playhouse and also utilizing local partnerships to bring resources to the Playhouse. Commissioner Moss expressed the importance of revitalizing the Coconut Grove area and how the Playhouse played an important role in that effort. He also commented on his desire for the South Dade Center to become a core of that community. Commissioner Suarez noted the total debt incurred by the previous entity operating the Coconut Grove Playhouse was well over $4 million and they were convinced to grant title to a governmental entity in a manner that would extinguish any claims with the exception of those mentioned by Mayor Gimenez. He supported bringing the Coconut Grove Playhouse into fruition. There being no further discussion, the Board proceeded to vote on this proposed resolution.

Infrastructure and Land Use Committee	1/11/2012	2A	Forwarded to BCC with a favorable recommendation				P
REPORT:	Assistant County Attorney Geri Bonzon-Keenan read the title of the foregoing proposed resolution into the record. Hearing no comments or questions, the Committee voted on the foregoing proposed resolution as presented.

County Attorney	12/19/2011		Referred	Infrastructure and Land Use Committee	1/11/2012

County Attorney	12/15/2011		Assigned	Debra Herman

Legislative Text

TITLE
RESOLUTION DIRECTING THE MAYOR OR MAYOR�S DESIGNEE TO NEGOTIATE AND PRESENT AGREEMENTS TO THIS BOARD FOR ITS APPROVAL TRANSFERRING TITLE OF THE COCONUT GROVE PLAYHOUSE PROPERTY TO THE COUNTY AND ELIMINATING ALL LIENS AND ENCUMBRANCES THEREON

BODY
WHEREAS, the Coconut Grove Playhouse (�Playhouse�) has provided an important part of the cultural landscape of Miami-Dade County for fifty years, prior to its closing in June 2006; and
WHEREAS, this Board seeks to restore regional, professional theater to Miami-Dade County at this historic location in Coconut Grove; and
WHEREAS, the owner of the property, Coconut Grove Playhouse, LLC, has expressed a desire to transfer the property upon which it is located to the County in order to facilitate such restoration and renovation (�Playhouse property�); and
WHEREAS, the Playhouse property appears to be currently encumbered with numerous restrictions, actual and potential liens and encumbrances, and claims, including but not limited to 1) reversionary interests of the State of Florida, 2) mortgages, 3) litigation claims, and 4) governmental liens; and
WHEREAS, this Board wishes to accept the transfer of the Playhouse property so that it may proceed to restore and renovate same, contingent upon obtaining full releases from all lien holders, and the elimination of all liens and encumbrances,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:
Section 1. The foregoing recitals are adopted and incorporated as though fully set forth herein.
Section 2. This Board directs the Mayor or the Mayor�s designee to negotiate agreements for presentation to this Board for the transfer of free and clear fee simple title to the County of the Playhouse property, and to negotiate agreements to resolve and eliminate all valid liens, claims and encumbrances in order to accomplish same. The Mayor of the Mayor�s designee may take all necessary actions to accomplish same, including but not limited to 1) identifying the current holders of such liens and encumbrances pursuant to a title search and title commitment, 2) identifying funding sources to assist in the negotiation and clearing of the liens and encumbrances on the Playhouse property, 3) negotiating agreements to eliminate liens, claims and encumbrances, which may involve payment of sums, swapping of lands, or other necessary agreements, 4) negotiating an agreement with the State of Florida regarding its reversionary interest and obtaining all necessary approvals, and 5) negotiating with any municipalities or governmental entities to obtain releases of any liens on the Playhouse property.
Section 3. This Board directs the Mayor or the Mayor�s designee to present such proposed agreements to this Board for its approval after negotiating same.