2016-29587 Reso L.
RESOLUTION NO. 2016-29587
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS WITH
RESPECT TO PHASE II OF THE RFP SELECTION PROCESS, PURSUANT
TO REQUEST FOR PROPOSAL (RFP) NO. 2016-009-ME, SEEKING
PROPOSALS FROM PARTIES INTERESTED IN PARTNERING WITH THE
CITY TO DEVELOP PUBLIC PARKING GARAGES WITHIN THE CITY OF
MIAMI BEACH; AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TWO (2) PROPOSERS: WASHINGTON
PROPERTIES, LLC / RF 930 WASHINGTON, LLC AND TERRANOVA
CORPORATION; WITH ANY FINAL NEGOTIATED AGREEMENT(S)
SUBJECT TO PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION.
WHEREAS, Request for Proposals No. 2016-009-ME (the "REP") was issued on
October 14, 2015, with an opening date of January 19, 2016; and
WHEREAS, a voluntary pre-proposal meeting was held on November 3, 2015; and
WHEREAS, the City received a total of two (2) proposals; and
WHEREAS, on February 10, 2016, the City Manager, via Letter to Commission (LTC)
No. 062-2016, appointed an Evaluation Committee (the "Committee"), consisting of the following
individuals:
• Max Sklar, Director, Tourism, Cultural and Economic Development Department, City of
Miami Beach;
• Rogelio Madan, Principal Planner, Planning Department, City of Miami Beach;
• David Martinez, Director, Capital Improvement Projects Department, City of Miami
Beach;
• Julie Santamaria, RBC Capital Markets;
• Saul Frances, Director, Parking Department, City of Miami Beach; and
The following individuals were appointed as alternates:
• Maria Cerna, Division Director, Capital Improvement Projects Department, City of Miami
Beach;
• Mark Milisits, Asset Manager, Cultural and Economic Development Department, City of
Miami Beach;
• Monica Beltran, Assistant Director, Parking Department, City of Miami Beach; and
WHEREAS, the Committee convened on February 17, 2016 to consider the proposals
received; Mr. Max Sklar, Mr. Tomas Mooney, and Ms. Carmen Sanchez were unable to
participate as committee members; therefore Mr. Mark Milisits and Mr. Rogelio Madan served
as members; 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, general information
on the scope of services, references, and a presentation from each proposer; and
WHEREAS, the Committee was instructed to score and rank each proposal pursuant to
the evaluation criteria established in the RFP; and
WHEREAS, the Committee's ranking was as follows: Washington Properties, LLC / RF
930 Washington, LLC, which proposed a mixed use project at 900-930 Washington Avenue;
and Terranova Corporation, which proposed a garage project at 830-836 West 42nd Street; and
WHEREAS, on March 9, 2016, the City Commission approved Resolution No. 2016-
29322, authorizing the shortlist of the two (2) responsive proposers; Washington Properties,
LLC and RF 930 Washington, LLC, and Terranova Corporation, to proceed to Phase II of the
RFP evaluation process; and
WHEREAS, on March 18, 2016, the City initiated Phase II of the evaluation process via
Addendum No.4 of the RFP and held a voluntary pre-proposal meeting on March 28, 2016 with
both proposers; and
WHEREAS, on June 3, 2016, the City received the proposals for Phase II; and
WHEREAS, it was determined that it would be in the best interest of the project to
maintain the same Committee that evaluated the proposers during Phase I; and
WHEREAS, the Evaluation Committee convened on August 17, 2016, and August 26,
2016 to consider the proposals received, with Mr. Saul Francis was unable to attend; and
WHEREAS, the Committee's ranking was as follows: Washington Properties, LLC / RF
930 Washington, LLC; and Terranova Corporation; and
WHEREAS, after reviewing all the submissions and the results of the evaluation
process, the City Manager recommends that the Mayor and City Commission authorize the
Administration to enter into negotiations with both proposers Washington Properties, LLC and
RF 930 Washington, LLC, and Terranova Corporation.
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 accept
the recommendation of the City Manager pertaining to ranking of proposals with respect to
Phase II of the RFP selection process pursuant to Request for Proposal (RFP) No. 2016-009-
ME to seek Proposals From Parties Interested in Partnering with the City of Miami Beach,
I Florida, to Develop Public Parking Garages within The City; and authorize the Administration to
enter into negotiations with both proposers, Washington Properties, LLC and RF 930
Washington, LLC and Terranova Corporation, with any final negotiated agreement(s) subject to
prior approval of the Mayor and City Commission. r _
PASSED AND ADOPTED this t 7 day of Se pttmiee 2016
B F,q ''n. , ,/�
ATTEST: �� ��i� ��
, : ': %%
i o QRA1E) APPROVED AS TO
...:. - 1, 6.) l., 1 -40( \ FORM&LANGUAGE
Ra"ael E. Granado, ity Jerk �i�' . '�,� &FOR EXECUTION
T:\A es Resolution pt 29b 16.doc urement\R-*,,*1609 P:u.,.',. •
P3\-4T9 Development of Public Harking
g '0 Sir,I-� TO 44*- n Ur(7.mB 3 Cia► ► p, Date
Resolutions - R7 J
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 27, 2016
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PERTAINING TO THE RANKING OF PROPOSALS WITH RESPECT
TO PHASE II OF THE RFP SELECTION PROCESS, PURSUANT TO REQUEST
FOR PROPOSAL (RFP) NO. 2016-009-ME, SEEKING PROPOSALS FROM
PARTIES INTERESTED IN PARTNERING WITH THE CITY TO DEVELOP
PUBLIC PARKING GARAGES WITHIN THE CITY OF MIAMI BEACH,
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH
THE TWO (2) PROPOSERS: WASHINGTON PROPERTIES, LLC / RF 930
WASHINGTON, LLC AND TERRANOVA CORPORATION; WITH ANY FINAL
NEGOTIATED AGREEMENT(S) SUBJECT TO PRIOR APPROVAL OF THE
MAYOR AND CITY COMMISSION.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
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. With the completion of the Walker Parking Study, several other areas were identified
throughout the City as high priority locations also in need of municipal parking garages. The
areas identified in the Walker Parking Study were included in this RFP.
Through this RFP, the City sought proposals for public/private partnerships to develop public
parking garages City-wide (each proposed site, a proposed "Project") to address the shortage
of parking City-wide, with an emphasis on the "High Demand" and as identified more fully in the
Walker Parking Consultant Demand Analysis. Accordingly, the City issued this RFP to seek
teams with proven experience in the development of similar facilities or projects, and the
financial and professional qualifications to deliver high-quality, economically feasible project(s).
RFP PROCESS
Page 516 of 692
On October 14, 2015, the City Commission approved the issuance of Request for Proposals
(RFP) No. 2016-009-ME to seek proposals from parties interested in partnering with the City of
Miami Beach, Florida, to develop public parking garages within the City. On October 20, 2015,
the RFP was issued, with an opening date of January 19, 2016. A pre-proposal conference to
provide information to the proposers submitting a response was held on November 3, 2015.
The RFP provides for a two-step, phased evaluation process. The Phase I selection process,
which is the reason for this item, relates 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, as identified by the Walker Parking Study. Only those Proposers short-
listed during Phase I will be authorized to proceed to Phase I I of the RFP selection process.
The City received proposals in response to the RFP from the following two (2)firms:
• Terranova Corporation.
• Washington Properties, LLC and RF 930 Washington, LLC.
On February 10, 2016, the City Manager appointed the Evaluation Committee via LTC # 062-
2016. The Evaluation Committee (the "Committee") consisted of the following individuals:
• Max Sklar, Director, Tourism, Cultural and Economic Development Department, City of
Miami Beach
• Rogelio Madan, Principal Planner, Planning Department, City of Miami Beach
• David Martinez, Director, Capital Improvement Projects Department, City of Miami Beach
• Julie Santamaria, RBC Capital Markets
• Saul Frances, Director, Parking Department, City of Miami Beach
The following individuals were appointed as alternates:
• Maria Cerna, Division Director, Capital Improvement Projects Department, City of Miami
Beach
• Mark Milisits, Asset Manager, Cultural and Economic Development Department, City of
Miami Beach
• Monica Beltran,Assistant Director, Parking Department, City of Miami Beach
The Committee convened on February 17, 2016 to consider proposals received. Mr. Max Sklar,
Mr. Thomas Mooney, and Ms. Carmen Sanchez were unable to participate as committee
members; therefore Mr. Mark Milisits and Mr. Rogelio Madan served as a member. 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
general information on the scope of services, references, and with a presentation of each
proposer. The Committee was instructed to score and rank each proposal pursuant to the
evaluation criteria established in the RFP. The evaluation process resulted in the ranking of
proposers as indicated below. The evaluation committee expressed its sentiment that both
proposals should be moved to Phase II.
On March 18, 2016, the City initiated Phase I I of the evaluation process via Addendum No.4 of
the RFP and held a voluntary pre-proposal meeting on March 28, 2016 with both proposers. On
June 3, 2016, the City received the proposals for Phase II.
It was determined that it would be in the best interest of the project to maintain the same
Committee from Phase I of the RFP selection process. The Committee convened on August
Page 517 of 692
17, 2016 and August 26, 2016 to consider the proposals received. Mr. Saul Francis was unable
to attend.
The Committee's ranking was as follows: Washington Properties, LLC / RF 930 Washington,
LLC; and Terranova Corporation.
MANAGER'S DUE DILIGENCE & RECOMMENDATION
After reviewing all the qualifications of each firm and having considered the Evaluation
Committee's comments and rankings, I am recommending that, for Phase II of the evaluation
process, the Mayor and the City Commission authorize the Administration to enter into
negotiations with both proposers Washington Properties, LLC and RF 930 Washington, LLC
and Terranova.
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
bank with a drive-thru teller facility and small parking lot. The Developer proposes a 145 room
hotel that would serve as liner building to a 247 space parking garage. Of the 247 spaces, 145
are proposed to be "City"-owned public parking spaces, increasing parking availability by 121
spaces. The balance, 102 spaces, are required parking for retail and hotel accessory use.
The proposed project is consistent with the recommendations from the Washington Avenue
Masterplan by providing new development in the form of a hotel as well as increased parking
availability to the corridor. The following are issues that will need to be addressed during
negotiations:
Issues:
The Developer must provide a parking plan to address parking demand generated by the hotel
component of the project, specifically, guest and employee parking. Of course, the concern is
potential utilization of the 145 City public parking spaces proposed by the project that would
negate any enhanced parking availability. The Developer committed to providing a parking plan
to address this issue.
The Developer committed to addressing issues related to access and traffic queuing to the
parking garage ingress/egress proposed on Pennsylvania Avenue. This issue would need to be
addressed during the negotiation phase.
Finally, 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.
Terranova Corporation
Terranova Corporation (the "Developer"), 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. The Developer proposes 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
Page 518 of 692
34 spaces).
If ground floor retail were added to the project a minimum of 50 parking spaces would be lost
reducing the total number of parking spaces to 153, compared to the 60 combined parking
spaces in the existing City and private lots. Terranova requires 60 spaces, leaving 93 spaces
for City parking, which is only a net increase of 59 spaces (93 spaces with garage minus 34
existing surface spaces = 59 spaces).
If retail is desired by the City Commission construction costs need to be updated to accurately
determine what the cost per space would be, but it would undoubtedly increase the cost per
space, which is currently $33,912. Additionally, 42nd Street is not considered a prime retail
location and staff has concerns with the viability of the retail space.
The proposed project provides additional parking supply to a high parking demand corridor,
particularly Monday to Friday, during traditional business hours. The following are issues that will
need to be addressed during negotiations:
Issues
The Developer did not propose any ground floor retail on West 42nd Street, citing significant
parking space loss likely resulting in a non-viable project, as well as concerns with establishing
retail across from the Nautilus Middle School.
The Developer committed to addressing issues related to the façade of the garage on West
42nd Street, should the ground floor retail requirement be waived.
The Evaluation Committee expressed concerns with the proposal, which limits the Developer's
contribution to the land value of its parking lot, and which requires the City to pay for the entire
cost of construction, including the 40-60 dedicated spaces for Terranova. In addition, while the
Developer stated at the Evaluation Committee meeting that it is open to discussions on the
structure of the transaction, the Developer's proposed lease or easement structure may
implicate 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 implicate
private use and other restrictions under the City's existing Parking Revenue Bonds. The
Administration will clarify these issues at the outset of any negotiations to determine if further
negotiations are in the parties'interests.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida hereby accept the recommendation of the City Manager pertaining to ranking of
proposals with respect to Phase II of the RFP Process selection process pursuant to Request
for Proposal (RFP) No. 2016-009-ME to seek Proposals From Parties Interested in Partnering
with the City of Miami Beach, Florida, to Develop Public Parking Garages within The City; and
authorizing the Administration to enter into negotiations with the two (2) proposers; Washington
Properties, LLC and RFP 930 Washington, LLC and Terranova Corporation;with any final
negotiated agreement(s)subject to prior approval of the Mayor and City Commission.
LM/MT/S F/MS/AD
KEY INTENDED OUTCOMES SUPPORTED
Page 519 of 692
Ensure Comprehensive Mobility Addressing All Modes Throughout The City
FINANCIAL INFORMATION
The cost of the related services, determined upon successful negotiations, are subject to funds
availability approved through the City's budgeting process. This project will not utilize grant
funding.
Legislative Tracking
Parking /Tourism, Culture and Economic Development/ Procurement
ATTACHMENTS:
Description
❑ Attachment A-- Evaluation Committee Scoring and Ranking
❑ Resolution
Page 520 of 692
Y N T
CO
CC
W
I-
< N-
0 ch
W J
Q
of a 0
N
C
C
N
07
OS 0)
N- co
co
C
7 ca
0)
C
Y N
C
m
co
` u)
ca =
rn
C
Y T N
C
a7
N
C N- N- ON)
0 0
N
C N
Y N T
C
co a
o co co
c v N-
T) co
0
CL 2
= M
V rn
W a
co z CO
as
n. w O fn J
W - F- J =
� O W
tiaWa o
a
9CLIZZ
Q 01- Y
0 of
0 uJ >. R' `o dJ
aatnva 0 0
u- re ce w oo C C
n. W S C t r
I— I— m cn co