LTC 275-2020 Update on Byron Carlyle RFP NegotiationsMIAM[BEACH
City of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florido 33139, www.miomibeachhl.gov
OFFICE OF THE CITY MANAGER
275-2020 COMMISSION
TO:
FROM:
DATE:
SUBJECT:
Mayor Dan Gelber and Members
Jimmy L. Morales, City Manager /} a } >
August 3, 2020
Update on Byron Carlyle RFP
In January 2019, the City issued RFP No. 2019-100-KB for development of a mixed-use project
with a cultural component at the Byron Carlyle Theater site. Last October, City Commission
Resolution No. 2019-30149 authorized simultaneous negotiations with the two proposers, top-
ranked Pacific Star Capital, LLC and second-ranked Menin Hospitality and KGTC, LL, with final
award and material terms subject to City Commission approval.
Following meetings with both teams this past January, public-private development projects were
temporarily paused at the onset of the COVID-19 pandemic. On June 12, the Finance and
Economic Resiliency Committee directed the Administration to resume negotiations and
emphasized the need to maximize any economic benefits of the deal, given the City's need for
diversified revenue sources. The following is a summary of negotiations conducted since the
discussion at Finance committee last month.
Pacific Star
Staff met with the Pacific Star team on July 9. Pacific Star's original proposal included a hotel on
the existing Byron Carlyle Theater site and an offer to purchase the standalone P80 lot. At the
meeting with staff, the developer indicated that it is no longer interested in pursuing the hotel
development on the Theater site but reaffirmed its original offer to purchase the P80 lot for $3
million. However, it is important to note that the solicitation, specifically Addendum 7, response to
Question 7, clearly stated that the sale of P80 was not within the scope of the RFP. As a result,
staff believes that the sale of P80 pursuant to the RFP is not allowable. Further, even if such a sale
was permissible under the RFP, Pacific Star's offer of $3 million is well below the property's value,
as determined by a 2018 appraisal when Pacific Star previously sought to acquire P80.
Menin Hospitality
Staff met with the Menin Hospitality team on July 14. At the meeting, Menin Hospitality reaffirmed
its original proposal for a 114-unit workforce housing development on the Byron Carlyle site. There
remain a number of issues to reconcile between Menin's proposal and the previously expressed
desire of the City Commission, such as the size of the cultural space and the number of workforce
housing units. Nevertheless, staff is confident that material terms for a development and lease
agreement can be finalized with Menin Hospitality for consideration by the City Commission.
Conclusion
Given Pacific Star's withdrawal of its hotel proposal, staff will proceed with finalizing the material
terms of a Menin Hospitality project, with the goal of discussing said details at the next regularly
scheduled meeting of the Finance and Economic Resiliency Committee scheduled in September
2020.