On April 26, 2017, the City Commission adopted Resolution No. 2017-29843 directing the City Administration to proceed with a consultant service order engaging Desman, Inc. (Desman), a mixed-used garage specialty consultant, to prepare a feasibility study and subsequent Design Criteria Package (DCP) for a mixed-used parking garage structure, including a new recreational park with a skate park and community use space, at the 72nd Street municipal parking lot (P-92). The existing surface parking lot (Attachment A), measuring approximately 3.8 acres, could serve as a connection between the North Shore Park and Youth Center and Bandshell Park. The Consultant and City staff from Parks and Recreation, Planning and the Office of Capital Improvements (CIP), proceeded to explore programming requirements for the new facility.

On March 7, 2018 the City Commission accepted the recommendation of the Finance and Citywide Projects Committee (FCWPC) to include a 50-meter competition swimming pool (aquatic complex) to the feasibility study for the proposed 72nd Street Park, Library and Aquatic Center (Project).

On June 8, 2018 the FCWPC heard a presentation showcasing four (4) conceptual options, developed by Desman, for the proposed Project. The FCWPC recommended the following items:
• Delete the all-wheels skate park and relocate to the West Lots
• Library component is mandatory
• Locate running track at grade
• Addition of resiliency and provide an active park in lieu of passive park

During the development of the feasibility study Desman, utilizing local market and similar project cost data, provided a conceptual project cost estimate for various schemes ranging in costs in excess of $60M. In the case of a feasibility study such as this one, since the project has not yet been designed, Desman followed standard industry best practices and relied on general assumptions, code requirements and historical data to determine pricing for each of the elements.

On July 20, 2018, the City Commission held a General Obligation Bond (GO Bond) Workshop and discussed project scope and cost, to be included in the GO Bond. During that meeting, the City Commission reviewed the conceptual total cost estimate of $60M proposed for the Bond. It was determined that the project would proceed on the GO Bond with a reduced project budget of $50M for the facility. In addition, $3.8M was added for the implementation of resilient strategies, resulting in a total project budget of $53.8M.

On July 25, 2018 the City Commission further discussed the scope and cost of the Project to be included in the General Obligation Bond. The scope of work was noted to include a parking garage, with a maximum of 500 parking spaces, civic and commercial space at the ground Level, a recreational park, roof-top 50-meter competition pool, 25-meter warm-up pool and support facilities, a 5,000-10,000 sf Library/Media Center and a 7,500 sf upscale fitness gym with a running track. Resiliency strategies that may be implemented in this project include resilient storm water retention and re-use system, solar electric power, energy efficient lighting and an activated roof level with green roofing system.

On November 6, 2018, the GO Bond Program was approved by the residents, including $53.8M for the project (Attachment B). As a result of the GO Bond discussions and resulting approval by the residents, Desman was directed to evaluate the feasibility study, and examine potential schemes incorporating the revised programming, as approved in the GO Bond Program. The feasibility study includes massing diagrams which examine spatial requirements of each of the program elements, the spatial relationships and beneficial adjacencies, against the planning, zoning and site constraints.

On June 14, 2019, the FY 2020 Preliminary Capital Budget was presented to FCWPC. During that presentation, the funding for the 72nd Street Park, Library and Aquatic Center, and a potential path to allocating the shortfall, was discussed. The Committee asked staff to provide additional details on the cost estimates for the project, the potential impact to the scope of the project at the lower budget allocation and estimated Operation and Maintenance costs, and bring the item to the July 19th meeting.

Cost Estimates

After the GO Bond passed, the project team re-evaluated the project estimate resulting in an updated total project cost estimate of approximately $64.4M (Attachment C), based on maximizing programming elements described in the GO Bond.

There is a projected budget shortfall of approximately $10.6M, as compared to the total project conceptual cost estimate of $64.4M. The table below shows a comparison of the conceptual total cost estimate, GOB Approved Budget and the Variance between the two costs.

PROJECT SCOPE:                                       ESTIMATE        GOB APPROVED        VARIANCE
1. Parking Garage                                            $27.2M                      $22.7M                ($ 4.5M)
2. Civic/Commercial                                         $ 9.1M                        $ 7.7M                 ($ 1.4M)
    • Civic/Commercial Space
    • Community Center
    • Fitness Gym and Running Track
3. Public Library/Media Center                          $ 8.5M                       $ 7.0M                  ($ 1.5M)
4. Recreational Park                                          $ 1.1M                       $ 1.1M
5. Aquatic Complex                                           $ 9.0M                        $ 7.0M                  ($ 2.0M)
    • Competition Pool
    • Competition Warm-up Pool
    • Sports Lighting for Pools
6. Sitework                                                          $ 9.5M                       $ 8.3M                  ($ 1.2M)
    • Site Work
    • Utilities
    • Sustainability and Resiliency

                                                   TOTAL              $64.4M                     $53.8M                   ($10.6M)

Impact To Scope At Current $53.8M Budget

The project team has identified potential scope reductions, lowering the project cost, to meet available budget. All components would continue to fulfill the program and description provided in the GO Bond Program. Potential reductions in scope and cost include the following items:
    • Reduce parking spaces from 500 spaces to 400 spaces ($5.4M savings)

·   • Reduce Community Room from 5,000 sf to 3,000 sf ($0.6M savings)

    • Reduce Library from 10,000 sf to 5,000 sf ($4.2M savings)

Some of the program elements for the proposed facility allow some flexibility in determining spatial requirements. The project team has examined possible variations in those elements and has determined the potential budget impact to the Project. Key elements with variability include Parking, Community Center and Library.
    • The cost of a 400 space garage would be $21.7M ($5.4M savings), a 500 space garage would         cost $27.1M ($0 savings) and a 600 space garage would cost $32.6M ($5.4M add).
    • The cost to construct a 5,000 sf Community Center would be $1.6M ($0 savings) and a 3,000           sf Community Center would cost $1.0M ($0.6M savings).
   • The cost to construct a 10,000 sf Library would be $8.5M ($0 savings) and a 5,000 sf Library            would be $4.2M ($4.3M savings).

O&M Costs

The initial estimate for operating and maintenance (O&M) costs of the facility that were provided during the G.O. Bond process was $2.5 million. Based on more refined calculations, the amount has been revised to $2.2 million. This amount is offset by an estimated $500,000 of revenue from the recreational elements of the facility for an estimated net expense of $1.7 million.

Additional revenue of $315,000 is estimated for rental of the retail space components that is recommended to be programmed for property management costs. Revenue from the use of the parking garage is planned to be used to cover costs of operating and maintaining the garage.

Funding Options

There are two recommended approaches for funding the $10.6M gap in funding for the 72nd Street project as shown below.

Option #1 would realign funding of $10.4M currently in the Parking Operating Fund set aside for the proposed North Beach Town Center project with $128K of funding from the 7th Street Garage fund balance.

Option #2 would realign $7.7M of the $10M of Resort Tax funds in the Transportation Capital Initiatives project with the remaining $2.9M coming from the 7th Street Garage fund balance.

CIP has continued to explore potential efficiencies and additional costs savings measures. On July 2, 2019, City staff met with representatives of Florida Power and Light to discuss the possibility of re-routing the power (transmission) lines that currently transect the project site. This could provide more flexibility for the ultimate design and would remove or reduce potential overhead obstructions. FPL will begin the process of providing a non-binding cost estimate to relocate the overhead power lines. Once the potential costs of relocating the power lines is identified, the project team will evaluate the benefits to the project.

On July 19, 2019, the City’s Finance and Citywide Projects Committee resolved to recommend to the City Commission, that the project proceed with the completion of the feasibility study and the design criteria package, including the program and scope as described in the GO Bond item. The Committee further recommended that the funding shortfall be closed through the use of the Parking Operating Fund set aside for the proposed North Beach Town Center project with $128K of funding from the 7th Street Garage fund balance (option 1). However, the Committee asked staff to pursue value engineering through efficiencies in shared uses, in order to conserve as much budget as possible, and provide additional parking spaces, delivering the project for a final cost between $60M and $64.4M.