LTC 104-2017 Development of Public Parking Garages RFP - UpdateMIAMIBEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 104-2017 LETTER TO COMMISSION
TO: Mayor Philip Levine and Members o the City Com
FROM: Jimmy L. Morales, City Manager
DATE: February 22, 2017
SUBJECT: DEVELOPMENT OF PUBLIC PARKING GARAGES RFP - UPDATE
This Letter to Commission (LTC) serves as a status report regarding RFP No. 2016-009-ME for
the Development of Public Parking Garages.
At the April 29, 2015 City Commission meeting, following the Washington Avenue Blue Ribbon
Panel presentation and recommendations, the Mayor and City Commission directed the
Administration to prepare an RFP seeking proposals from parties interested in partnering with
the City to develop parking garages along the Washington Avenue corridor to address parking
concerns. Through this RFP, which expanded the geographical scope of the RFP to include
other high demand areas, the City sought proposals for public/private partnerships to develop
public parking garages to address the shortage of parking citywide, specifically, with an
emphasis on proposals whereby privately-owned properties could be combined with adjacent
City-owned lots, to maximize the footprint available for development of public parking garages.
The City issued the subject RFP on October 20, 2015. The RFP provided for a two-step,
phased evaluation process. The Phase I selection process related to the qualifications and
experience of the proposing team; the number of public parking spaces generated by the
project; and if the project is within the high demand areas. The Phase II selection process
focused on the technical and price proposals.
On June 3, 2016, the City received the Phase II proposals from the following firms:
o Terranova Corporation; and
o Washington Properties, LLC and RF 930 Washington, LLC.
On August 17, 2016 and August 26, 2016, an Evaluation Committee convened to consider the
proposals. The Evaluation Committee, and subsequently, the City Manager, recommended that
both proposals should proceed to the negotiations phase.
On September 27, 2016, the Mayor and the City Commission authorized the Administration to
enter into negotiations with both proposers.
The following is a brief synopsis of each proposal:
Washington Properties, LLC and RF 930 Washington, LLC
Washington Properties, LLC and RF 930 Washington, LLC (the "Developer"), proposed a joint
development of Municipal Parking Lot No. P12, containing 24 parking spaces at 900
Washington Avenue, and the adjacent property, located at 930 Washington Avenue, currently a
ssion
bank with a drive-thru teller facility and small parking lot. The Developer proposed a 145 room
hotel that would serve as liner building to a 247 space parking garage. Of the 247 spaces, 145
were proposed to be "City"-owned public parking spaces, increasing parking availability by 121
spaces. The proposed project was consistent with the recommendations from the Washington
Avenue Blue Ribbon Panel, by providing new development in the form of a hotel as well as
increased parking availability to the corridor. The Evaluation Committee raised a concern with
the cost of construction and cost per space in this proposal, of approximately $56,254 per
space, and recommended the Administration negotiate with the Proposer to bring the cost
down.
The City held a negotiation meeting with Washington Avenue Properties, LLC regarding their
proposal on November 16, 2016, and a second was scheduled for January 6, 2017.
Subsequently, the developer declined to attend the second meeting, and after various attempts
to contact the developer, on February 16, 2017, the City received a communication from
counsel for the developer, indicating that for reasons beyond direct discussions with the City,
the developer had elected not to proceed with pursuing this project at this time. Various factors
may change their view in the future. However, for now, the Developer terminated negotiations
with the City.
Terranova Corporation
Terranova Corporation proposed a joint development of Municipal Parking Lot No. P62,
consisting of 34 parking spaces at the southeast corner of West 42nd Street and Jefferson
Avenue, and the adjacent property, located at 830 West 42nd Street, currently a private parking
lot, consisting of 26 parking spaces, owned by and serving the Terranova office building.
Terranova proposed a parking garage with 203 total spaces on three levels, providing 143 City
spaces (an increase of 109 spaces) and 60 private spaces (an increase of 34 spaces).
The September 27, 2016 Commission Memorandum recommending negotiations noted several
key threshold questions with regard to the Terranova proposal that needed to be addressed
during negotiations. Among other issues, although Terranova stated at the Evaluation
Committee meeting that it was open to discussions on the structure of the transaction,
Terranova's proposed lease or easement structure (which was different from the purchase/sale
structure the City specified in the RFP) implicated significant ad valorem taxation issues for
either the City or the Developer, or both, and the proposal regarding the dedicated parking
spaces to the Developer at no cost likely implicated private use and other restrictions under the
City's existing Parking Revenue Bonds.
On November 8, 2016, and on January 5, 2017, the City held two negotiation meetings with
Terranova regarding their proposal. Subsequently, through Terranova's counsel, the City
received a communication from Terranova that they understood the City's concerns regarding
ad valorem taxation with a lease structure, but that Terranova was not in a position to consider
the purchase/sale structure contemplated in the RFP; therefore, negotiations have been
terminated.
c: Kathie Brooks, Assistant City Manager
Mark Taxis, Assistant City Manager
Susanne Torriente, Assistant City Manager
Marcia Monserrat, Special Projects Coordinator
Raul Aguila, City Attorney
Rafael Paz, First Assistant City Attorney
Alex Denis, Procurement Director
Eva Sliverstein, Director of Tourism, Culture, and Economic Development
Saul Frances, Parking Director