LTC 476-2019 WEST LOTS UPDATE MIAMI BFACb
OFFICE OF THE CITY MANAGER
NO. LTC # 476-2019 LETTE TO COMMISSION
TO: Mayor Dan Gelber and Member o the Comm ssion
FROM: Jimmy Morales, City Manager
DATE: August 28, 2019
SUBJECT: WEST LOTS UPDATE
This Letter to Commission is intended to provide an update to the Mayor and
Commission on the status of the West Lots and proffer a recommendation of a more
holistic and strategic manner to proceed. There has been quite a bit of analysis of
the potential of these lots, as well as a flurry of offers of interest for these lots (either
individually or collectively). This LTC will endeavor to summarize these
developments and lay out a path moving forward.
Background
The eight city owned parcels fronting Collins Avenue between 79th Street and 87th
Street are collectively known as the "West Lots." These lots are located between
the North Shore Historic District and North Beach Oceanside Park. The City also
owns the northern half of the block between 87th Street and 87th Terrace, 1/2 of which
is a parking lot and the other half green space. This block is not traditionally referred
to as one of the West Lots.1
Currently, half of Lot 1 is being temporarily used by Ocean Rescue for their
headquarters and the other half is parking. Lots 2, 5 and 6 are being used as off-
street parking. Lot 3 is the site of the former nursery and had been slated for North
Beach Yards until the project decided not to move forward. One third of Lot 4
contains the temporary skate park, and the remainder of the lot is committed to be
more fully developed as a larger skate park/all-wheels track under the GOB
program. Lots 7 and 8 are vacant lots. A composting site will open this fall on a
portion of Lot 6 and will be operated by the Miami Beach Botanical Gardens.
It is important to note that any sale or long-term lease (more than 10 years) of any
of the West Lots would require voter referendum. Furthermore, the City
Commission has included the West Lots within the boundaries of the proposed
Community Redevelopment Agency for North Beach.
History of Studies
There have been two major efforts to assess the highest and best uses for the West
1 At one point, the residential development project across the street from this lot had proposed a
joint development of this parcel for retail and parking. That proposal did not move forward.
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Lots in the context of North Beach redevelopment. Each of these included
significant public outreach and stakeholder input.
NOBE Master Plan
In 2016, the City Commission adopted the North Beach Master plan (NOBE) which
was prepared by a team of consultants led by Dover Kohl & Partners. The NOBE
plan identified the West Lots as highly potential spaces for future mixed-use
development. The NOBE plan shows that the development of these lots can add
additional recreational/civic spaces as well as retail and dining options to the
neighboring community.
The NOBE plan suggested two scenarios for potential development: 1) Mid-rise
hotel and residential developments on four of the eight lots to be considered for
public/private partnerships, with the remaining four lots to remain available for civic
uses and parking; 2) primarily public uses such a seven-story hotel, retail uses,
various active public and civic spaces along with a parking structure. Both scenarios
were included in the City Commission adopted NOBE plan.
West Lots Master Plan
In June 2018, the City Commission adopted the West Lots Master Plan, also
prepared by Dover Kohl & Partners.
On June 27, 2018, the City Commission discussed the design plans by Dover Kohl
for the future use of the West Lots. The key recommendation of this plan is what
Dover Kohl called the Five "Big Ideas":
1 . Grow with consensus in ways that enhance North Beach's uniqueness
2. Provide active uses to support the passive park
3. Higher-height (if needed) and revenue generating uses, on edges
4. Showcase resilience and sustainability
5. Don't lose parking, but improve transit access
The West Lots Plan details various possibilities that could be considered for the
development of these public assets, including but not limited to: a bohemian village;
food venues; educational center; eco-hotel; hydroponic farming and eco-park;
parking garage; tropical garden; playground areas; water square; and youth center.
The West Lots design plan also recommended relocating the log cabin to the North
Beach Oceanside Park to operate as a café or concession (NOBE Plan
recommended it on the West Lots).
City Commission approved West lot uses
The City Commission, to date, has already considered and voted on some possible
uses for the West Lots:
Hydroponics
Earlier this year, the Sustainability Committee recommended to the City
Commission that staff solicit proposals for a hydroponic farming concept on one of
the West Lots. On June 5, 2019, the City Commission authorized the administration
to enter into negotiations, pursuant to an Invitation-to-Negotiate (ITN), for a
hydroponic farming partnership, with Freight Farms, Inc. and Energy Cost Solutions
Group, LLC (ECSG). The goals of the negotiations were to establish final site
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selection, site development, selection of plant materials, community involvement,
and financial considerations for the project. On July 9 & 10, 2019 staff conducted
the first series of negotiation meetings with ECSG and Freight Farms, Inc. However,
on July 12, 2019 Freight Farms, Inc. notified the City of its intent to withdraw from
further consideration stating it is unable to invest the upfront capital required for the
project.
Consequently, staff has continued to negotiate with the remaining proposer, ECSG.
ECSG has further developed its proposal to include hydroponic container farming
with a minimum of four (4) containers, composting, outdoor seated planters,
sustainability elements (e.g. helical wind power, water tower, bio-diesel generator),
walk-up beach or sidewalk style food venues, entertainment and special event
venues, seating area with firepit, native & edible hedge, and the possibility for a
future roofed structure. ECSG has proposed a range of plant materials that can be
produced within the container farms. ECSG will be responsible for expenses, which
include but are not limited to, the cost of the containers, property taxes,
utilities, applicable licensing and permit fees, operating costs and expenses (e.g.
waste collection), insurance costs, and maintenance of the site. The City would only
be responsible for providing power and water to the site.
The Administration expects to present the final material terms, pursuant to the
negotiation with ECSG, for the City Commission's consideration in October, pending
negotiation. The precise location is yet to be determined.
Bohemian Village
As noted earlier in this LTC, the City Commission had approved the use of Lot 3 for
food and entertainment by North Beach Yard (NBY). Since then, the lessee shared
her decision to not move forward with the NBY approval. The City has since
received inquiries from third parties about similar yard concepts on Lot 3.
Temporary Parking
Earlier this summer, as part of the negotiations for the Ocean Terrace project, the
City Commission requested a parking solution to replace the lost parking spaces on
Ocean Terrace. Part of the solution proffered by the developer and city staff was
the use of the parking available at the West Lots as temporary parking during the
construction of the development project.
Permanent Parking
On March 13, 2019, the City Commission accepted the recommendation of the
Neighborhood/Community Affairs Committee, which included relocating lost parking
in the North Beach area to potential parking garage(s) between West Lots 1-6 as a
result of the proposed neighborhood greenways project.
Proposals received for West lots
In recent years, the City has received various unsolicited offers for projects on the
West Lots. Earlier this year, for example, the City Commission referred an item to
consider micro soccer fields on the West Lots, but the final action was to have the
use be evaluated citywide. Several vendors/operators have unofficially expressed
interest in developing portions of the lots for recreational and entertainment
purposes as well.
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Analysis
As noted in two master plans described above, there are a variety of uses
contemplated for the West Lots and these uses have all been individually
considered to help spur both economic activity and quality of life in the area. The
current uses are temporary, and the City continues to receive interest for activation
of the lots. Our concern is that one-off concepts will cause inconsistency and
potentially hinder the overall redevelopment of the West Lots towards achieving the
highest and best opportunity for this area. In this regard, it is recommended that
any interim uses proposed for the West lots not exceed three to five years.
Conclusion:
The community vision plans call for creating economic vitality and mixed-use
development that includes retail, hotel, civic/public and institutional uses; residential,
and recreational features.
Residential, hotel, and retail uses are usually best developed through the private
sector, and civic and public space are best developed through the public sector.
The best way to balance these two uses and create the highest and best use for the
long-term future of the sites would be through a public private partnership (P3). This
vision can be accomplished by allowing the open market to competitively bid their
redevelopment concepts to the City. There are no other 9.4 acres of vacant land
with this proximity to the beach that exist; as such, a holistic redevelopment of these
sites can be a potential game changer on the future of the North Beach area.
It is our recommendation that the time is right to test the market and issue an
Invitation to Negotiate (ITN). The City would entertain development concepts that
are consistent with the community visons plans and city approved resilience
strategy. The City Commission will always retain the right to pursue individual
projects if it so decides, but at least it will have had the opportunity to compare those
individual proposals with other projects that the market might proffer for some or all
of the lots. It is the intention of the Administration to bring such an ITN to the City
Commission for approval at the October meeting.
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C: Susanne M. Torriente, Assistant City Manager
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