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LTC 063-2021 RFLI No. 2021-029-KB (Class A Office Space Development Lincoln Lane North) UPDATECity of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov OFFICE OF THE CITY MANAGER LETTER TO COMMISSION TO: Mayor Dan Gelber and Members of the City Commission FROM: Raul Aguila, Interim City Manager DATE: February 12, 2021 SUBJECT: UPDATE - RFLI 2021-029-KB Class A Office Development The purpose of this Letter to Commission (LTC) is to update the Mayor and City Commission regarding Request for Letters of Interest (RFLI) 2021-029-KB, seeking expressions of interest in developing Class A office space on Lincoln Lane North. Last October, at the direction of the City Commission, the Administration released the above referenced RFLI seeking expressions of interest from developers interested in developing Class A office space on any or all of the three largest parking lots adjacent to Lincoln Road, which include P25, P26 and P27, as highlighted below. By first issuing an RFLI prior to any solicitation, the City Commission may gauge whether interest exists among the real estate development industry for a potential public-private partnership on these lots. The RFLI specified that interested parties were not to submit development offers or proposals. Instead, if market interest exists in developing Class A office space on these lots, as determined by the City’s receipt of expressions of interest, the City Commission may consider issuing a Request for Proposals (RFP) to seek formal detailed proposals from interested parties. A formal RFP would be necessary to seek development proposals, as the City Charter would likely require voter referendum approval of any development on these lots.            LTC 063-2021 Letter to Commission – Update on Class A Office RFLI February 12, 2021 Page 2 of 2 Following issuance of the RFLI in October, the due date for the submission of letters of interest was extended from November 9, 2020, to February 11, 2021. This extension enabled the RFLI process to gain momentum while the Administration invested $8,000 in an eight-week strategic marketing plan targeting the development and business market. The Economic Development Department collaborated with the Marketing and Communications Department to develop and execute a marketing campaign which included digital ad placements in relevant trade publications, programmatic display ads utilizing behavioral and content filters as well as geotargeted ads in Florida and the Tri-State area. The Administration also worked with the Lincoln Road Business Improvement District to publicize the RFLI resulting in mentions in publications such as the Miami Herald and South Florida Business Journal among others. The deadline to submit letters of interest to the Procurement Department was 3:00 PM on February 11, 2021. The City received letters of interest from fifteen (15) entities prior to the deadline. Two (2) additional letters of interest were received just after the deadline for a total of seventeen (17) responses. See Exhibit A (Receipt Log Sheet). The list of interested parties includes accomplished real estate developers and investors, known both locally in the region and nationally. Next Steps The results of the RFLI will be discussed on February 19, 2021 at the Finance and Economic Resiliency Committee (FERC) meeting as part of an existing Economic Development item that includes marketplace analysis depicting a resilient local office market and continued interest among out-of-state tenants. As the Administration is recommending action be taken in light of these favorable conditions, the FERC may recommend the City Commission authorize preparation of an RFP. Firms invited to participate in the RFP would include but not be limited to respondents to the RFLI. The RFLI stipulates that the Administration may hold industry review meetings, following the receipt of expressions of interest, in order to discuss questions or concerns including any impediments to development with interested parties. The objective of industry review meetings would be to obtain information to ensure preparation of an RFP that best promotes the City’s interests while maximizing benefits the City may receive from any development. Please direct any questions on the foregoing to Rickelle Williams, Economic Development Director (RickelleWilliams@miamibeachfl.gov).            13th Floor Investments Mangrove Real Estate Partners, Tricera Capital, Sasaki Adler Group Northwood Acquisitions and Northwood Investors Design District Management, Inc., D/B/A Dacra & Adventurous Journeys LLC Oak Capital Group LLC Andalex Capital R & B Realty Group, LLC The Comras Company of Florida, Inc. & Terra Related Group (PRH Investments, LLC) COO Premium Development, Inc. RFR Holding LLC (Received on 2/11/21 @ 3:39pm EST) Sterling Bay, Place Projects, and Deco Capital Group Galbut Family Office LLC (Received 2/11/21 @ 5:40pm EST) David Mancini & Sons, Inc. East End Capital Integra Investments & Starwood Capital Group REQUEST FOR LETTERS OF INTEREST RFLI 2021-029-KB CLASS “A” OFFICE DEVELOPMENTS Responses received by: _________________________________________________________ (Print Name and Sign) Kristy Bada, Contracting Officer III Company Company February 11, 2021 3:00 p.m.