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Resolution 2021-31617 RESOLUTION NO. 2021-31617 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS FEBRUARY 19, 2021 MEETING, AND AUTHORIZING THE CITY MANAGER TO PREPARE A REQUEST FOR PROPOSALS (RFP) FOR MIXED-USE DEVELOPMENTS INCORPORATING CLASS A OFFICE SPACE NEAR LINCOLN LANE NORTH, INCLUDING THE 17TH STREET MUNICIPAL GARAGE, AS DIRECTED BY THE CITY COMMISSION AT ITS FEBRUARY 24, 2021 MEETING. WHEREAS, on October 9, 2021, at the direction of the City Commission, the Administration released a Request for Letters of Interest (RFLI) seeking expressions of interest from developers interested in developing Class A office space on any or all of the three parking lots adjacent to Lincoln Road, known as P25, P26 and P27; and WHEREAS, following a strategic marketing campaign focused on the out-of-state business and development market, the City received statements of interest from eighteen (18) entities, which are identified in the RFLI Receipt Log Sheet attached to the Memorandum accompanying this Resolution as Exhibit "A"; and WHEREAS, on February 19, 2021, the Finance and Economic Resiliency Committee (FERC), as part of a recurring discussion item to formulate policies aimed at attracting out-of-state tenants in targeted industries, recommended that the Administration seek City Commission authorization to prepare an RFP; and WHEREAS, on February 24, 2021, the City Commission discussed the RFLI and provided further direction that the 17th Street parking garage be included in the forthcoming solicitation for Class A office space; and WHEREAS, on March 17, 2021, the Administration sought guidance from the City Commission as to development of an RFP's scope, selection criteria, and procurement process, including the ability of the Administration to engage a consultant and/or conduct industry meetings in order to prepare the RFP; and WHEREAS, the City Commission desires that the Administration prepare an RFP and submit the solicitation for review and approval by the City Commission at its April 2021 meeting. 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 Finance and Economic Resiliency Committee at its February 19, 2021 meeting, and authorize the City Manager to prepare a Request for Proposals (RFP) for mixed-use developments incorporating Class A office space near Lincoln Lane North, including the 17th Street municipal garage, as directed by the City Commission at its February 24, 2021 meeting. PASSED and ADOPTED THIS 11 day of f� e4 2021. ATTEST: ' 7'L E. GRANADO, CITY CLERK DAN GELBER, MAYOR .� %%%%% : INCORP ORATED-* APPROVED AS TO ��s FORM &LANGUAGE 14444 0H 26'c, &FOR EXECUTION 3 - ID -— Z ) City Attorney t _ Date Resolutions -C7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Raul J.Aguila, Interim City Manager DATE: March 17, 2021 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS FEBRUARY 19, 2021 MEETING AND AUTHORIZING THE CITY MANAGER TO PREPARE A REQUEST FOR PROPOSALS (RFP) FOR MIXED-USE DEVELOPMENTS INCORPORATING CLASS A OFFICE SPACE NEAR LINCOLN LANE NORTH, INCLUDING THE 17TH STREET MUNICIPAL GARAGE, AS DIRECTED BY THE CITY COMMISSION AT ITS FEBRUARY 24, 2021 MEETING. RECOMMENDATION Approve the preparation of a Request for Proposals (RFP) in accordance with direction provided by the City Commission and submit such RFP to the City Commission for approval in April 2021. BACKGROUND/HISTORY On October 9, 2021, at the direction of the City Commission, the Administration released a Request for Letters of Interest (RFLI) seeking expressions of interest from developers interested in developing Class A office space on any or all of the three parking lots adjacent to Lincoln Road, known as P25, P26, and P27. Following issuance of the RFLI, 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 a strategic marketing campaign focused on the out-of-state business and development market and which included targeted digital advertisement. Upon closing of the RFLI on February 11, 2021, the City had received statements of interest from eighteen (18) entities, which are identified in the RFLI Receipt Log Sheet attached to this Memorandum as Exhibit A. The list of interested parties includes accomplished real estate developers and investors, known both locally in the region and nationally. On February 19, 2021, the Finance and Economic Resiliency Committee (FERC), as part of a recurring discussion item to formulate policies aimed at attracting out-of-state tenants in targeted Page 253 of 2284 industries, recommended the Administration seek City Commission authorization to prepare an RFP . On February 24, 2021, the City Commission discussed the RFLI and provided further direction that the 17th Street parking garage be included in the forthcoming solicitation for Class A office space. ANALYSIS With South Florida continuing to benefit from high wage talent relocating to the region,there is a shared belief and vision that decisionmakers in the investment industry, financial services, technology, and other sectors will strongly consider opening headquarters or satellite offices to Miami Beach. The city benefits from several competitive strengths, including a prestigious cultural fabric; attractive beachfront real estate; access to international capital; a dedicated focus from City leadership to enhance the business climate; a diverse and educated workforce; and a robust resiliency strategy. The ample amount of City-owned land and the potential to bundle government incentives for business attraction both provide great opportunity to capitalize on the migration of investment funds and technology firms from higher-tax environments. CBRE's Q3 2020 Miami Marketview Report forecasted a swift real estate market recovery and signs of economic resurgence, with a reported total Class A inventory in Miami Beach of 937,526 SF and 10.4%vacancy. The definition of "Class "A" office space is subjective and varies based on market/submarket and the changing landscape of tenant desirability. In today's market, tenants desire highly amenitized leased spaces, not merely the traditional luxury office space on upper floors with water views and high-end finishes. CBRE provided the following description for Class A office space: In general, a class A building is an extremely desirable investment-grade property with the highest quality construction and workmanship, materials and systems, significant architectural features, the highest quality/expensive finish and trim, abundant amenities, first-rate maintenance and management; usually occupied by prestigious tenants with above average rental rates and in an excellent location with exceptional accessibility. Such spaces are most eagerly sought by international and national investors willing to pay a premium for quality and are often designed by architects whose names are immediately recognizable.A building described as Class A is often considered to be a landmark, either historical, architectural, or both. It may have been built within the last 5-10 years, but if it is older, it has been renovated to maintain its status and provide many amenities. Buildings of this stature can be one-of-a-kind with unique shape and floor plans, notable architectural design, excellent and possibly outstanding location, and a definite market presence. SOLICITATION The RFP solicitation will aim to maximize use of underdeveloped City-owned assets and encourage private capital investment, offering developers a tremendous opportunity to access public land steps away from Lincoln Road and the Convention Center Campus. Proposals must incorporate Class A office space and could provide for replacement of any existing public parking.Any public-private partnership (P3) project(s)on each of the parcels would observe the surrounding CD-3 (Commercial, high intensity) zoning. Pursuant to the City's Charter, any long- Page 254 of 2284 term ground lease of the parcels would require approval at referendum by a majority of the electorate. Surface Parking Lot P25 Lot P25 is comprised of five tax folios measuring a combined 37,116 sf (0.85 acres) which provide a total of 86 parking spaces available to the public. The land is zoned GU, Government Use, which is limited by the adjacent zoning, which in this case is CD-3, Commercial High Intensity, the most intensive of the commercial districts. Within the CD-3 zoning district, maximum height is 80 feet and properties equal to or less than 45,000 sf have a maximum FAR of 2.25. Therefore, redevelopment on the entire site could potentially reach a maximum built floor area of 83,511. Surface Parking Lot P26 Lot P26 is comprised of six tax folios measuring a combined 48,863 sf(1.12 acres)which offer a total of 106 public parking spaces. The land is zoned GU, Government Use and is limited by the adjacent zoning, which in this case is also CD-3, Commercial High Intensity. Within the CD- 3 zoning district, maximum height is 80 feet and properties larger than 45,000 sf have a maximum FAR of 2.75. Therefore, redevelopment on the entire site could reach a maximum floor area of 134,373 sf. Surface Parking Lot P27 Lot P27 is comprised of seven tax folios measuring a combined 60,202 sf (1.38 acres) which offer a total of 151 parking spaces available to the public. The land is zoned GU, Government Use and is limited by the adjacent zoning, which in this case is also CD-3, Commercial High Intensity. Within the CD-3 zoning district, maximum height is 80 feet and properties larger than 45,000 sf have a maximum FAR of 2.75. Therefore, redevelopment on the entire site could reach a maximum floor area of 165,555 sf. 17th Street Garage— G5 In addition to the three surface lots, the Administration, at the direction of the City Commission, will also include a fourth City-owned parcel adjacent to Lincoln Road,the 17th Street Garage. In addition to 1,460 public parking spaces, the 162,000 SF garage includes storage and administrative spaces used by a few City departments. Given the number of subject parcels, varying development options, and potential for transformative growth, the Administration may deem necessary to seek the assistance of a real estate consultant to assist with preparation of the RFP solicitation. In addition, prior to issuing a solicitation, the Administration could conduct industry meetings in order to discuss questions or concerns that would be subject to the cone of silence upon issuance of an RFP. The objective of industry 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. SUPPORTING SURVEY DATA According to the 2019 Customer Satisfaction Survey, the majority of Miami Beach businesses, approximately 70%, have a positive overall image of the city. The survey notes that a majority of Miami Beach businesses have a favorable perception towards quality of life, quality of city services, cultural offerings, crime prevention, sustainability, and quality of public schools— all factors cited as necessary when businesses consider relocating to a new market. Page 255 of 2284 CONCLUSION The Administration therefore recommends that the Mayor and City Commission accept the recommendation of the Finance and Economic Resiliency Committee as to development of an RFP, and authorize the Administration to prepare an RFP, and submit such RFP to the City Commission for approval in April 2021. Applicable Area South Beach Is this a "Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? Yes No Strategic Connection Prosperity- Revitalize targeted areas and increase investment. Legislative Tracking Economic Development ATTACHMENTS: Description ❑ Attachment A- RFLI Log Sheet D Resolution Page 256 of 2284 REQUEST FOR LETTERS OF INTEREST RFLI 2021-029-KB CLASS "A" OFFICE DEVELOPMENTS February 11, 2021 3:00 p.m. Company Company Mangrove Real Estate Partners,Tricera Capital, 13th Floor Investments 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) RFR Holding LLC COO Premium Development, Inc. (Received on 2/11/21 ©3:39pm EST) Galbut Family Office LLC Sterling Bay, Place Projects,and Deco Capital Group (Received 2/11/21 ©5:40pm EST) The Peebles Corporation and the Scott Robins David Mancini&Sons, Inc. Companies East End Capital Integra Investments&Starwood Capital Group Responses received by: ,tri. (Print Name and Sign) Bada,Contracting Officer III Page 257 of 2284