Resolution 2019-30908 Resolution No. 2019-30908
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, PURSUANT TO INVITATION TO NEGOTIATE (ITN) NO.
2019-099-KB, FOR THE DEVELOPMENT OF THE . COLLINS PARK ARTIST
WORKFORCE HOUSING PROJECT, AUTHORIZING THE ADMINISTRATION TO
ENTER INTO SIMULTANEOUS NEGOTIATIONS WITH ATLANTIC PACIFIC
COMMUNITIES, LLC, THE TOP RANKED PROPOSER, AND SERVITAS, LLC, THE
SECOND RANKED PROPOSER; AND FURTHER, PROVIDING THAT THE FINAL
SELECTION OF THE RECOMMENDED PROPOSER AND APPROVAL OF
MATERIAL TERMS FOR THE PROJECT SHALL BE SUBJECT TO THE PRIOR
APPROVAL OF THE MAYOR AND CITY COMMISSION.
WHEREAS, on January 16, 2019, the Mayor and City Commission approved the issuance of
Invitation to Negotiate (ITN) No. 2019-099-KB, for the Development of the Collins Park Artist Workforce
Housing Project; and
WHEREAS, on January 18, 2019, ITN 2019-099-KB for Collins Park Artist Workforce Housing
Project was issued; and
WHEREAS, on March 26, 2019, the City received a total of two (2) proposals from the following
firms: Atlantic Pacific Communities, LLC and Servitas, LLC; and
WHEREAS, on January 16, 2019, the City Manager an appointed Evaluation Committee,
comprised of Maria Cerna, Deputy Director, Office of Capital Improvement Projects, City of Miami
Beach, Maria Ruiz, Director, Housing and Community Services, City of Miami Beach, Deborah Tackett,
Chief of Historic Preservation, Planning Department, City of Miami Beach and Allison Williams, Deputy
Director, Finance Department, City of Miami Beach; and
WHEREAS, the Committee convened on April 12, 2019, to consider the proposals received;
and
WHEREAS, the Committee was provided an overview of the project, information relative to the
City's Cone of Silence Ordinance and the Government Sunshine Law, as well as, general information
on the scope of services and a copy of each proposal, and was instructed to score and rank each
proposal pursuant to the evaluation criteria established in the ITN; and
WHEREAS, the evaluation process resulted in the ranking of proposers in the following order:
Atlantic Pacific Communities, LLC as the top ranked proposer, and Servitas, LLC, as the second
ranked proposer; and
WHEREAS, in addition to the Evaluation Committee's evaluation of the proposals, the
Administration conducted an enhanced background check of publicly available information (liens,
judgments, bankruptcy filings, etc.)for both firms, and both reports were found to be satisfactory; and
WHEREAS, after reviewing the proposers' qualifications, submissions and the deliberations of
the Evaluation Committee, the City Manager exercised his due diligence, as more particularly set forth
in the analysis contained in the City Commission Memorandum accompanying this Resolution, and
recommended that the Administration be authorized to enter into negotiations for a Development and
Ground Lease Agreement with Atlantic Pacific Communities, as the top ranked Proposer; with the final
agreement subject to review and approval by the Planning Board and City Commission, in accordance
with the requirements of Section 82-37 and Section 1.03(b)(4) of the City Charter.
WHEREAS, at the July 17, 2019 City Commission meeting, the Mayor and City Commission
considered the City Manager's recommendation; however, because of the multiple uses, design factors
and demographics of the project, the Mayor and City Commission determined that the City would
benefit from simultaneous negotiations with Atlantic Pacific Communities, LLC, the top ranked
proposer, and Servitas, LLC, the second ranked proposer, with the final selection of the recommended
proposer subject to the prior approval of the Mayor and City Commission.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission
hereby, pursuant to Invitation to Negotiate (ITN) No. 2019-099-WG for Collins Park Artist Workforce
Housing Project; authorize the Administration to enter into simultaneous negotiations with Atlantic
Pacific Communities, LLC, the top ranked proposer, and Servitas, LLC, the second ranked proposer;
and further, provide that the final selection of the recommended proposer and approval of material
terms for the Project shall be subject to the prior approval of the Mayor and City Commission.
PASSED AND ADOPTED this 17 day of `ltti 2019.
40
-_
Dan Ge •er, Mayor
ATTEST:
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Rafael E. Granado, City Clerk
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 17, 2019
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER, PURSUANT TO INVITATION TO NEGOTIATE (ITN)
NO. 2019-099-KB, FOR THE DEVELOPMENT OF THE COLLINS PARK
ARTIST WORKFORCE HOUSING PROJECT, AND AUTHORIZING THE
ADMINISTRATION TO NEGOTIATE A DEVELOPMENT AND GROUND •
LEASE WITH ATLANTIC PACIFIC COMMUNITIES, LLC, WITH THE FINAL
NEGOTIATED AGREEMENT SUBJECT TO PRIOR APPROVAL BY THE
PLANNING BOARD AND MAYOR AND CITY COMMISSION, IN
ACCORDANCE WITH SECTION 82-37 OF THE CITY CODE AND SECTION
1.03(6)(4) OF THE CITY CHARTER.
RECOMMENDATION
Adopt the Resolution accepting the recommendation of the City Manager, pursuant to Invitation
to Negotiate (ITN) 2019-099-KB for the development of the Collins Park artist workforce
housing project.
ANALYSIS
On July 20, 2016, the City Commission directed the Administration to pursue a workforce and
artist housing facility on the City-owned lots east of Liberty Avenue (behind the library). The
project site located on the block, south of 23rd Street, west of Liberty Avenue, and north of the
Miami-Dade County Public Library is part of a Unified Development Site that includes the
current surface parking lot and the library. Immediately to the west is the City-owned building
occupied by the Miami City Ballet as well as the planned new parking facility. Immediately east
of the site is the Shep Davis affordable housing property, privately owned and operated.
The Planning Department estimates that the site has an available Floor Area Ratio (FAR) of
approximately 90,000 square feet. The building can have a 75-foot maximum height as
approved by City Commission Resolution 2016-29679 on December 14, 2016. The City's
Capital Improvements Office evaluated a concept which allowed for a building with seven (7)
floors and approximately 9,200 sq. ft. per floor.
As part of its direction on July 20, 2016, the City Commission approved the option to include (1)
floor of residential development for ArtCenter/South Florida (ACSF) and the building's ground
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floor for artist studios to promote artists in the area; in addition to the option of two (2) residential
floors of the new development for Miami City Ballet, Inc. Any areas developed for ACSF or
Miami City Ballet would be paid for and have condominiumized ownership by ACSF and Miami
City Ballet, respectively. However, subsequent to the issuance of the ITN, ACSF notified the
Administration that it had acquired a property within the City of Miami and that it is no longer
interested in partnering with the City on this particular project.
The Administration is still interested in having Miami City Ballet be involved in the project.
However, that involvement must meet the goals of both the City and the Miami City Ballet. In the
event that the MCB elects not to move forward, the Administration is recommending that the
additional two floors be used for a combination of artist and/or other workforce housing and the
ground floor be developed as either commercial retail or ground floor artist studios.
These are the general parameters for the project site:
1. The top floors will be dedicated to a combination of workforce housing units targeting
employees of artistic institutions and area educators employed in Miami Beach.
2. Target population — Artists and employees of artistic institutions as well as area
educators earning up to 140%Area Median Income (AMI) (Resolution 2017-29758).
3. Rent levels - Rents should not be more than 30% of the AMI of targeted incomes,
which has been established by the City Commission as households earning up to 140%AMI.
4. The City adopted Ordinance No. 2017-4149 in 2017 which reduced the
minimum/average unit size to 400 square feet and reduced requirements that mandate a
minimum number of parking spaces for new workforce and affordable housing developments.
5. The project would be structured as a 50-year lease,with two (2)20-year renewals, for a
potential total of 90 years.
'The City engaged The Concourse Group, its P3 consultant for housing projects, to determine
the project's viability and feasibility for leveraging the City's property to entice a private
developer to maximize the project. The Concourse Study for the Collins Park Workforce
Housing Project report (the "Study") attached as Appendix"F". The Study does not supersede
any of the parameters presented above.
ITN PROCESS:
On January 16, 2019, the Mayor and City Commission approved to issue the Invitation to
Negotiate (ITN) No. 2019-099-KB, For the Development of the Collins Park Artist Workforce
Housing Project. On January 18, 2019, the ITN was issued. A voluntary pre-proposal
conference to provide information to proposers submitting a response was held on February 5,
2019. Two addenda were issued. The Procurement Department issued bid notices to 961
companies utilizing www.publicpurchase.com website. 115 prospective bidders accessed the
advertised solicitation. ITN responses were due and received on March 26, 2019.
The City received proposals in response to the ITN from Atlantic Pacific Communities, LLC
and Servitas, LLC.
On January 16, 2019, the City Commission approved the City Manager appointed Evaluation
Committee. The Evaluation Committee convened on April 12, 2019, to consider proposals
received. The Committee was comprised of Maria Cema, Deputy Director, Office of Capital
Improvement Projects, City of Miami Beach, Maria Ruiz, Director, Housing and Community
Services, City of Miami Beach, Deborah Tackett, Chief of Historic Preservation, Planning
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Department, City of Miami Beach and Allison Williams, Deputy Director, Finance Department,
City of Miami Beach. The Committee was provided an overview of the project, information
relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The
Committee was also provided with general information on the scope of services and a copy of
each proposal. The Committee was instructed to score and rank each proposal pursuant to the
evaluation criteria established in the ITN.
The evaluation process resulted in the ranking of proposers as indicated in Attachment A, in the
following order: Atlantic Pacific Communities, LLC as the top ranked Proposer and Servitas,
LLC as the second ranked Proposer. A brief summary of each firm based on the information
contained in the proposals.
Atlantic Pacific Communities, LLC
Atlantic Pacific Communities is an affiliate of Atlantic Pacific Companies, a fourth-generation
family owned real estate company with over 125 years of experience in purchasing, developing,
leasing and managing residential and commercial properties. Headquartered in Miami, the firm
has over$2B in real estate owned; employs over 1400 people; and has over 44,100 units under
management. The Atlantic Pacific team consists of leaders in affordable housing development,
and in particular, complex projects involving true partnerships with local government. The firm
has developed over 11,100 affordable and mixed-income housing units.
Servitas, LLC
Servitas, LLC has delivered, or is currently developing, more than student housing 8000 units in
types ranging from two story, wood frame walkups to nine-story, concrete and steel high-rises.
Servitas has developed approximately $1 B in projects, including more than $600M in new on-
campus housing in the last four years. Having delivered the largest student housing public-
private partnership in the nation, a 1540 unit development built in 24 months by three general
contractors, Servitas has extensive experience managing large complicated teams as part of its
projects, the firm has delivered over 2200 units using conventional private equity or institutional
funding and has served more than 45 systems and institutions in 15 states.
CONCLUSION
I have reviewed the proposals from both firms and the results of the Evaluation Committee
process. In doing so, I note that the Evaluation Committee found Atlantic Pacific's proposal to
be top-ranked, followed by Servitas as second-ranked. I also note a number of important
differences between the two proposals.
While both firms appear to be well qualified, in reviewing the record of each firm with regard to
development and operation of workforce housing, I find that Atlantic Pacific has a significantly
stronger proven track record of successfully developing and managing workforce housing
projects locally. In Miami-Dade County alone, Atlantic Pacific has extensive experience
developing public-private housing projects totaling over 1,800 units. Servitas appears to
primarily be focused on the college/university dormitory sector and does not appear to have
developed any workforce housing projects locally or nationally. In addition to the significant
differences in developing similar projects between the two firms, I find that the principals of
Atlantic Pacific have established deep business and personal roots locally, which gives them a
clear perspective of the needs of the community and its residents.
Further, while the Administration certainly welcomes the participation of the Miami City Ballet in
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this project and acknowledges the importance of this partnership, it is somewhat concerning to
me that Miami City Ballet has chosen to be included exclusively as a team member to the
proposal submitted by Servitas. The City was clear in the solicitation that any proposal would
have to incorporate the needs of Miami City Ballet, should the parties come to an agreement.
Frankly, it is my opinion that the position that Miami City Ballet has taken in partnering with
Servitas in the submittal of a proposal is premature. Notwithstanding, from the Administration's
perspective, Miami City Ballet is not precluded in partnering with the City on the project
regardless of the proposer selected.
Finally, I am also concerned with the language in Servitas' proposal which claims that "Miami
City Ballet will be the tax-exempt owner of the facility." Again, while the Administration
welcomes a partnership with the Miami City Ballet on this project, at no time has it considered
transferring ownership of the project.
Therefore, after reviewing each proposal and the deliberations of the Evaluation Committee, I
recommend that the Mayor and City Commission authorize the Administration to enter into
negotiations for a Development and Ground Lease Agreement with Atlantic Pacific
Communities, LLC. Following approval from the City Commission, the Administration and the
City Attorney's office would negotiate with Atlantic Pacific to arrive at the details of the project,
including Miami City Ballet's needs and the financial and management aspects of the
agreement. The final agreement is subject to the approval of the Planning Board and the City
Commission.
Legislative Tracking
Housing and Community Services/Procurement
ATTACHMENTS:
Description
❑ Attachment A
❑ Resolution
Page 1255 of 1502
' ITN 2019.099•KB FOR THE
DEVELOPMENT OF THE
COLLINS PARK ARTIST Maria Cerna Maria Ruiz Deborah Tackett ° Allison Williams c Low c
WORKFORCE HOUSING o c Aggregate
PROJECT z z z Totals 12
Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal
Atlantic Pacific Communities
LLC 98 0 98 1 97 0 97 1 84 0 84 2 99 0 99 1 51
Servitas LLC 91 0 91 2 85 0 85 2 92 0 92 1 95 0 95 2 7 i 2
Quantitadho Ponds _
r "I l Total Points
Proposer Veterans Paints Mananurn toImto.. Awarded
Atlantic Pacific Communities r .r'. Ma
LLC o ':7,1,1,7171 ,,i., o
Servitas LLC o xs,'.: o
FOR DISPLAY PURPOSES ONLY.FINAL RANKING DOES NOT CONSTITUTE AN AWARD RECOMMENDATION.
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