NEW BUSINESS  7.

COMMITTEE MEMORANDUM

HISTORY:

The Pennsylvania Garage building consists of 572 municipal parking spaces and approximately 7,722 square feet of ground floor retail space.  In September 2011, the City executed a new lease agreement for the retail space with Penn 17, LLC (“Penn 17”) for a period of ten (10) years.  When Penn 17 failed to make the required rent payments under the lease the City terminated the lease in March 2015 and Penn 17 vacated the space in July 2015.

Since that time, the City has utilized the vacant space for various purposes such as EnerGov training, temporary offices for Code Compliance and Housing & Community Services and as a temporary location for the Miami Beach Chamber of Commerce Visitor’s Center. 

In March 2017, the City engaged the Koniver Stern Group to market the space for lease.  In June 2018, the City opted to change brokers and engaged CBRE, Inc. to market the space for lease.  Due to a number of factors, including the convention center renovation, the extended closure of Convention Center Drive and the temporary closure of 17^th Street, the City has received very little interest in the space and no serious leasing prospects for the City’s consideration.  For example, on January 15, 2018, CBRE received a proposal from a local Latin restaurant, Ola, located at 2216 Park Avenue.  In part, the proposal included a City contribution of $100,000 towards interior improvements, and base rent increasing from $5.18 PSF in years 1 and 2, 5.83 PSF in year 3 and $7.77 PSF in year 4.  Thereafter, assuming completion of the convention center hotel, the rent would be based on a percentage of revenue (to be determined).

Due to the lack of viable lease prospects at this time, and the need to relocate City departments from the 555 17th Street building in preparation for the pending construction of the Convention Center hotel, the Administration has been considering the Pennsylvania Garage retail space as potential short term solution.  The Administration recognizes that this is not the best use of the space once the new Convention Center hotel is complete as this corridor will serve as a vital connector between the Miami Beach Convention Center, the new Convention Center hotel, and Lincoln Road.

The Miami Beach Chamber of Commerce currently utilizes 935 SF in the retail space for the Miami Beach Visitor's Center resulting in +/-6,800 SF of available space which could be utilized by Code.  The Administration anticipates that the Miami Beach Visitor's Center will continue to occupy the space until the new Convention Center Hotel is completed.

ANALYSIS:

On December 21, 2018, Moonlighter Makerspace (Moonlighter) submitted a Letter of Intent to the City, attached hereto as Attachment A (Letter of Intent).  As contained in the Overview section on Page 2 of the Letter of Intent, “Moonlighter is a social venture that brings a S.T.E.A.M. (Science, Technology, Engineering, Arts & Math) education center, co-working space, and digital fabrication lab together in the same space. This encourages creative collaboration and innovation to occur organically - where members are constantly learning, making, and sharing ideas. By empowering the community with the technical skills they need and giving them affordable access to advanced manufacturing technologies, we prepare citizens for exponential and changing economies, and we close the digital divide by leveling the playing field and giving everyone an opportunity to harness the means of shaping their futures and the environments where they live, work and play.”  Moonlighter has provided several articles regarding their work within the community, attached hereto as Attachments B, C and D.

While Moonlighter currently operates as a social venture (S-corp.), the corporation is in the process of incorporating and filing for 501(c)3 status, expected to be completed in February 2019.

The basic terms and conditions contained in the Letter of Intent are as follows:

Demised Premises:  Approximately 7,722 rentable square feet

Use:  S.T.E.A.M. education center, co-working space, and digital fabrication lab

Term: Up to ten (10) years

Rent: $1.00 annually

Moonlighter has proposed numerous public benefits initiatives as outlined below:

STEAM Education

Supporting Science, Technology, Engineering, Arts, and Mathematics education to students throughout Miami Beach.

• 1 Free Field Trip to all Miami Beach schools (up to 30 students per field trip)
•   Reduced rate after school programming to Miami Beach students.
• Bi-Annual Educator Professional Development Workshops.
• Free Monthly Maker Workshops for Miami Beach Residents.

Urban Placemaking / Arts Activations

Partnering with local Miami Beach institutions to activate public spaces and/or support arts initiatives with the digital fabrication lab. Work with local artists to nurture emerging talent.

Artisans and Innovators in Residence

A residency program that supports creatives with the resources they need to build their innovative concepts. 1 studio space per year for a selected person or team based on project proposal submission.

Moonlighter Memberships

Memberships are a low-cost solution for people interested in learning how to use digital

fabrication techniques and tools to build their ideas. It provides a low barrier to entry for new ideas to be tested before committing to more expensive manufacturing methods.

Community Benefit Venue Waiver

Exhibition space can be granted to cultural and educational organizations for exhibitions, fundraisers, workshops, and events that support the advancement of the mission.

Fourth Industrial Revolution Lecture Series

A lecture series bringing in experts in the fields of Internet of Things, Machine Learning, Artificial Intelligence, Robotics, Automation, Autonomous, Alternative Energies, Advanced Manufacturing and Construction, and other relevant topics to advance workforce development in the region, preparing the city for industry 4.0.

CONCLUSION:

The Administration seeks direction from the Finance and Citywide Projects Committee.