RESOLUTION NO.

307- 98 A RESOLUTION OF THE CHAIRMAN AND MEMBERS

OF THE MIAMI BEACH

APPROVING

THE PROPOSED

PARKING RATE STRUCTURE

AND OPERATING BUDGET FOR

AS SUBMITTED BY

QUIK

REDEVELOPMENT AGENCY,

FISCAL YEAR 1998/

PARK OF FLORIDA,

99,

INC., FOR

THE
OPERATION OF THE PAmilNGCOMPONE TOFTHEANCHORSHOPSANDPAmilNG AT SOUTH BEACH, IN ACCORDANCE

WITH

THE TERMS AND CONDITIONS OF

THE GARAGE FACILITY

JULY

MANAGEMENT AGREEMENT DATED

15,1998,BETWEEN THE AGENCY

AND

OF FLORIDA,INC.WHEREAS, on July 1,
1998,
PARK
in accordance with the Garage Easement Agreement between the
Miami Beach
and
MB
Inc"
the
Redev
e
l
o
pment
Agency
Redevelopment Agency
Redevelopment,
adopted a Resolution authorizing
the execution of a Management Agreement with Quik Park of Florida,Inc"for the operation of the
garage component of the
QUIK

Anchor Shops at South Beach and

the Management

Agreement,

Quik Park

Parking;and WHEREAS, under the terms of

must submit, for approval by the
Redevelopment Agency, an

annual budget
for

must also

the

establish

operation of

the

garage component;

parking rates for the garage component,

and WHEREAS, the Redevelopment

which

are

Agency

consistent with the

structure identified in Section 6(c)

of the Easement Agreement, and which are are comparable/
to
rates
charged
other
hotel garages and comparable facilities, and that encourage use
competitive
by
when spaces

committed to the hotels are not required, NOW

THEREFORE, BE IT DULY RESOLVED BY THE CHAIRMAN AND MEMBERS OF

THE MIAMI BEACH REDEVELOPMENT AGENCY

Chairman and Members of the Miami

structure and operating budget for FY 1998/ 99,

that the

Beach

proposed parking rate

Redevelopment Agency approve the
Park
of
Florida,
by Quik
Inc"for the operation of the parking component of the
Anchor Shops at South Beach, in accordance with the
terms and
of
Garage
Faci
l
i
t
y
Management
Agreement,
the
conditions

as submitted

dated July 15,

1998,

between

the

Agency

and

October 1998.

PASSED and ADOPTED

this
21st
day of

Quik

Park

of

Florida,

ATTEST:

t flU~~~
Inc.

SECRETARY ~

r~

Exhibit A

lof2

Anchor

Projected

Shops & Parking

Expenses ( Quik Park)
Operatin&:

A.Payroll:

@ 528.
84/
1)
Manager
wk X 52
weeks 3)
Asst
Managers @ 350.
00/ wk X
52
weeks 1)
Asst Manager
@ 375,
OO/

wk

52weeks 6)

Cashiers @

6.

001hr X
40hrs

52

we ks

2)
Porters @ 7,
OO/

hr

X 40 hrs
54, 600.00

500. 00

00

29,120.
00 SubTotal:
205,

600.
00
Employee
B.

Benefits:
i)

Vacation

Eligible

after completing

1 year
ii)
Holiday Eligible
after 90
days;
prorated (

3)
holidays

iii)
Sick
Pay

Eligible

52 weeks

19, 500,00

27,
74,880,

Exhibit A
20f2
Anchor

Summary

Payroll

Taxes:

Workers

Comp:

Health & Welfare:

Uniforms:

Calculated

Shops & Parking

( Quik Park)

of Expenses

11.
15%Function

88 per $ 100.
00 of
@ 90 days:
@ 85,
$
10 months = $

months 3,
= $

Signage:

6)
Cashiers

Telephone:

Sweeping:

65

Insurance:

Security:

856.

00

185.
@ $

11,

Porters @ $

2)

85,

employees

@ 5,
$

00 X

52 weeks

Courier:

00

Supplies:

10

426.

Management @ 7,
$

Utilities:

@ $
X

Management fee:

Sanitation:

50

10 months =1,
$
713.00
8

Liability

Manager
X

57

134,20

Professional Services:

1)
65

Mgr

X 10 months = $

Utilities:

Eligible

payroll

4)
Asst.
85.
65

Tickets:

payroll- 5.
$

of

weeks

X 52
Estimated

00/ 20m

use

200m; $350.

Related restriction signs;

125,OO/month

maintenance 400.

X 12

00 Installation

months

Shops Par&
king
9:
00

P.
M,
-00 A.
6:

Daily

Rates

Hour

Hours

Hours

24 Hours
Night Rates - (

M,

Monthly Rate FrilSat/Sun)

Anchor

Exhibit

0 Projected

Operations for

the 16th

Street
Garage
Period

12/111998
Annual 9/
30/

1999 Parking

revenues $ 1,909,

900 1,
$
672, 300 1)
(
Less: sales tax
116,600

102, 100 Parking

Revenues net

of tax
1,793,

300
000 Net

Excess payment to Loews

1,
570,200

Parking Revenues 1,

1,
500, 200

Retail

28%
132, 500 70,

660,800

Space

290,000

96,
700 (

2)
Total Net

Revenues

Miami Beach

Redevelopment Agency
1700 Convention Center

Drive Miami

Beach,

Florida
33139

7295
673Telephone:305)
(

Fax: (
7772 REDEVELOPMENT AGENCY MEMORANDUM NO.
673-

305)

98-3
'-\ October 21,1998

TO:

and Members

Chairman

of the
Board

of the Miami Beach Redevelopment Agency FROM:Sergio Rodriguez Executive

Director SUBJECT:A RESOLUTION OF THE

CHAIRMAN AND MEMBERS OF THE MIAMI BEACH REDEVELOPMENT

APPROVING THE PROPOSED PARKING RATE STRUCTURE AND OPERATING
AGENCY,
BUDGET FOR FISCAL

AS SUBMITTED BY
YEAR 1998/ 99,

QUIK PARK OF FLORIDA,INC.,FOR THE OPERATION OF

THE PARKING COMPONENT OF THE ANCHOR SHOPS AND PARKING

ACCORDANCE WITH

AT SOUTH BEACH, IN
THE TERMS AND CONDITIONS OF THE GARAGE

FACILITY

MANAGEMENT

AGREEMENT DATED

JULY

OF FLORIDA, INC. RECOMMENDATION Adopt the

July 1,1998,in accordance with the Garage Easement
On
Resolution BACKGROUND
Loews"),("
the RDA adopted a resolution authorizing
Agre ment between the RDA and MB Redevelopment, Inc.,
the RDA,for
the execution of a Management Agreement between Quik Park of Florida, Inc.,and
and
16th Street
at
South
the
Anchor
Beach Parking ("
Shops
the operation of the garage component of
s
Quik Park was selected on the basis of the company'
Garage").
executed
was
subsequentl
y
The
valet
Agreement
operations.
extensive experience in running hotel- related parking and
Quik
The
1998.
July
Park
Agreement stipulates that
15,
on
provides its services to operate the garage and sets forth, among
other things:duties
and
15,1998,

BETWEEN THE AGENCY AND

QUIK

PARK

budget, reimbursable expenses,

quality standards, equipment,
responsiblites; management;
methods, operating
accounting

term

of

contract, and

Under the terms of the

Management Agreement, Quik Park must submit for approval by the RDA,
a proposed annual budget for the operation of the garage. The RDA must also establish
parking
rates for the facility.

ANAL YSIS
803car 16th
proposed rate structure for the substantially completed,
the
amount
consi
d
ered:
1)
of
debt
servi
c
e
important
factors
were
to
be covered
Street
four
the facility;2)
and
the revenue sharing obligations with Loews
by the operation of
the
operating
costs;
and
3)
rates
which
anticipated
4)
setting
are
Crowne Plaza;
comparable/ competitive to rates charged by other hotel garages and comparable facilities and that encourage
use when spaces committed to

In order to establish

Garage,

the

hotels are

not required. Revenue Sharing Obligations Under the terms of the easement agreement with Loews for use of the
upgarage, Loews is
entitled to the use of 560 spaces for which the RDA receives an

front annual use fee of 550,

000,in addition to paying parking charges for their use
$
of spaces at
a rate not to exceed 50 percent of the established self- park rate for each
between the
RDA and RDP
space used for valet operations. Under a separate easement agreement
a similar formula was
Plaza"),
Plaza will pay $156,600 annually up-front as a use fee,in

Royal

space

Hotel, Ltd.,Crowne
("

Palm

at the same

used
spaces

the

for

rate

their

as Loews, The hotels

use

are

applied.For
addition

required to

for valet parking of

hotel

use

to parking charges

of 174 spaces,

for

Crowne

each

provide 24 hour notice to reserve

guests or for events, The 69

remaining spaces
plus any

spaces not reserved by the hotels will be available for public parking. The Easement
also provide for Loews and Crowne Plaza to share in the gross revenue stream generated by the garage on
the basis of a two-tiered system. In the first tier, the hotels receive
a percentage
Agreements

of gross
percent

percent

revenue, up to their respective annual

use fees, calculated as
1,320, 000 in gross revenues
of the first $
for Loews and

of

Plaza. In

the first 1,
$ 200,

the second tier,Loews receives

1 320,
, 000

28

percent

of

000 in gross

gross

revenues in

excess

revenues for

41. 7
13,
05

Crowne

of $

and Crowne Plaza

receives 6.
46 percent

1.2 mil ion, In essence, the firstof gross revenues over $

tier
use
fee,
Pr
o
posed
Operating
and
debt service
the annual
Costs
The Adminstration has worked closely with Quik Park to develop a first- year' s operating budget which is
at the 7th
Street Garage. Of all the City' s parking
consistent with actual and budgeted expenditures
facilities, the 7th Street Garage was deemed to be the best
comparable for use in developing
pr
o
posed
the
16th
budget
for
faci
l
i
t
y.
The
the
first

is intended as a credit against

Street

Proposed

Rate Structure

developed a rate structure in accordance with the parameters established in

the Garage Easement Agreement that will provide sufficient gross revenues to cover operating and
maintenance costs, debt service and revenue sharing obligations. Consideration was also given to
providing competitive short- term daily rates and weekend and evening flat rates to encourage
public use of available spaces when shopping, dining, doing business or attending events in the
area.
The proposed rate structure, included as Attachment " B" to this package, calls for a rate
The Administration has

for up to 2 hours, $
first hour, $4. 00
$ 00 for up to 24 hours. In order to arrive
up to 6 hours and 18.
two
factors were considered: the parking rates charged by select hotels
park
rate,
daily self-

2.00 for the

of $

including

the Loews Hotel, and the rates needed

the

to

10,00 for

at the
the area,

in

be charged to the Loews and

Crowne

the garage. Revenue Projections Pursuant to the terms

of the Easement
Agreements, the RDA cannot charge Loews or Crowne Plaza more than 50 percent of the
established self-park rate (per space) for use of their spaces,Over the course of the last
two months, Loews and the Administration have been trying to reach an understanding in interpreting
park"rate as defined in the Agreement.Based on a preliminary breakeven analysis
the self"
to be charged to Loews should
determined that the rate needed
performed in-house, it was
be 9,
$
00 per space, which would be 50
percent of the daily self-park rate
of
$
18.00. Loews contends that they should be paying 50 percent of the
hourly rate and not necessarily 50 percent of the daily self- park rate,Both Loews and the
Administration agree however, that due to the logistical complications in tracking usage of the spaces on an hourly basis,
Plaza for use of the spaces in

paying a flat rate for the highest

number

per day,coupled with an access card

an agreement had not been
solution. Since

of spaces

used

would be the most viable

$
reached at the time this report was prepared, revenue projections were prepared assuming a 9.
00 flat rate charged to Loews, With input received from the Parking Department and Quik Park,
assumptions were also made with respect
system

to
Shops

usage/

occupancy

of

was
is

sales

tax

estimated

in

the

facility,

In

addition,

revenue from

existing retail leases in the Anchor

it
as Attachment " D",
Based on the projections, which are included
also factored in.
net
1,
793,300
in
r
e
v
e
n
u
e
s
that the garage can
gross
of
generate $
12 months
of operation, or 1,570,200, based
the first

on 10 months from

1998, through
December I,

the 12-month and 10-month

breakdowns, which are based on conservative occupancy levels, meet breakeven requirements for the facility. Until
an agre ment is reached with Loews on a rate to be charged for their spaces, the revenue projections
cannot be relied upon as final. However, given the anticipated
the

end

of the City's fiscal

year. The

projected revenues

in

CONCLUSION

opening of the Loews Hotel has been delayed to the end of November. The opening of the 16th
16th is also experiencing delays, and based upon
Street Garage, originally scheduled for October
information provided by the developer and the contractor, is now scheduled to open by midNovember. The Administration has been working diligently to monitor and press the contractor to
it
meet its deadlines and performance requirements, In anticipation of the opening of the garage,
is important to set the parking rates in order to start generating income for the facility. Under the
terms of the Easement Agreement and the Parking Operator Agreement, the RDA has the sole and
absolute discretion to adjust the rates as usage patterns in the garage are established.
The

Redevelopment Agency Board approve the attached

proposed parking rate structure and operating budget for FY

The Administration recommends that the

Resolution

approving

the

98/
99, submitted by Quik Park of

Florida,
Inc.,tpv SR:
CMC: