Resolution 2022-32242 RESOLUTION NO. 2022-32242
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING SECOND
READING/PUBLIC HEARING, AS AUTHORIZED UNDER SECTION 82-37 OF
THE CITY CODE AND SECTION 1.03(B)(2) OF THE CITY CHARTER,A LEASE
AGREEMENT BETWEEN THE CITY OF MIAMI BEACH ("CITY")AND LINCOLN
ROAD PROPERTY OWNER, L.P. ("LESSEE") OF THE CITY-OWNED
SURFACE PARKING LOT P25 (CONSISTING OF FIVE (5) TAX FOLIOS: 02-
3234-004-0870, 02-3234-004-0880, 02-3234-004-0890, 02-3234-004-0900 AND
02-3234-004-0910) LOCATED IN MIAMI BEACH, FLORIDA AND A LEASE
AGREEMENT BETWEEN THE CITY AND LESSEE OF THE CITY-OWNED
SURFACE PARKING LOT P26 (CONSISTING OF SIX (6) TAX FOLIOS: 02-
3234-004-0710, 02-3234-004-0720, 02-3234-004-0730, 02-3234-004-0820, 02-
3234-004-0830 AND 02-3234-004-0840) LOCATED IN MIAMI BEACH,
FLORIDA (TOGETHER, THE "LEASES"), FOR THE CONSTRUCTION OF
MIXED-USE DEVELOPMENTS CONSISTING OF (1) CLASS A OFFICE SPACE,
(2) GROUND FLOOR RETAIL, (3) PUBLIC PARKING TO REPLACE THE
EXISTING PUBLIC PARKING SPACES ON BOTH PARKING LOTS P25 AND
P26, AND (4) ADDITIONAL PARKING TO SATISFY OFF-STREET PARKING
REQUIREMENTS FOR THE OFFICE USE (THE "PROJECT"); SUCH LEASES
BEING SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE CITY
COMMISSION PURSUANT TO SECTION 82-37(A) AND APPROVAL BY A
MAJORITY VOTE OF THE VOTERS IN A CITY-WIDE REFERENDUM
PURSUANT TO SECTION 1.03(B)(2) OF THE CITY CHARTER; PROVIDING
FOR THE PROJECT TO BE DEVELOPED, DESIGNED, FINANCED,
CONSTRUCTED, AND OPERATED IN ACCORDANCE WITH THE TERMS OF
THE LEASES AND THE DEVELOPMENT AGREEMENT FOR THE PROJECT
BETWEEN THE CITY AND LESSEE, APPROVED PURSUANT TO
RESOLUTION NO. 2022- 322 -II ; AND PROVIDING FOR A MAXIMUM
TERM OF NINETY-NINE (99) YEARS, WITH AN INITIAL TERM OF FIFTY-ONE
(51) YEARS, AND TWO (2) RENEWAL TERMS, FOR A PERIOD OF TWENTY-
FOUR (24) YEARS EACH, AT THE LESSEE'S OPTION; AND FURTHER,
AUTHORIZING THE CITY MANAGER TO FINALIZE THE LEASES AND MAKE
ANY NECESSARY NON-SUBSTANTIVE CORRECTIONS TO SCRIVENER'S
ERRORS, SUBJECT TO FORM APPROVAL BY THE CITY ATTORNEY, AND
FURTHER, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
LEASES.
WHEREAS, the City Commission has expressed an interest in diversifying the City's
economy and its revenue sources by capitalizing on the economic growth opportunities presented
by the current and projected business growth in the region, particularly by making a concerted
effort to attract the financial services and technology industries; and
WHEREAS, in furtherance of this objective, the City Commission has discussed the need
to increase Class A office space inventory throughout the City; and
WHEREAS, at its December 11, 2019 meeting, the City Commission discussed the
possibility of making available certain surface parking lots north of Lincoln Road to promote the
development of Class A office space in the City Center area; and
WHEREAS, on October 9, 2020, the City issued Request for Letters of Interest 2021-029-
KB, seeking expression of interest from developers interested in building Class A office
developments on the surface parking lots P25, P26, and P27 immediately north of Lincoln Road
the ("RFLI") and the RFLI yielded significant interest, including expression of interest from
eighteen (18) respondents; and
WHEREAS, on March 17, 2021, the City Commission adopted Resolution No. 2021-
31617, authorizing the preparation of a Request for Proposals for mixed-use development
incorporating Class A office space at three City-owned sites near Lincoln Lane North and the 17th
Street parking garage (G5)(the "RFP"); and
WHEREAS, the City received proposals from the following three firms: (1) Infinity
Collective LLC; (2) Lincoln Road Property Owner, L.P., a Delaware limited partnership and joint
venture among Integra Investments, Starwood Capital, and The Comras Company (for clarity,
Lincoln Road Property Owner, L.P. is referred to as "Integra" or"Lessee"); and (3) Lincoln Road
Holdings LLC, a Florida limited liability company and joint venture among The Peebles
Corporation, Baron Corporation, and Scott Robins Companies, Inc., such joint venture partners
now having formed 1664 Meridian LLC, an affiliated special purpose entity (which, for clarity, is
referred to as "TPC"); and
WHEREAS, after reviewing the various proposals submitted, the process and rankings of
an Evaluation Committee appointed by the City Manager, and the assessments of staff and the
City's consultant, the City Manager determined that the best RFP options for the City to pursue
were Option 3 (Parking Lot P27) with TPC and Option 5 (Parking Lots P25 and P26 combined)
with Integra, and the City Manager recommended that the Mayor and City Commission authorize
the commencement of negotiations with these bidders; and
WHEREAS, on February 23, 2022, the City Commission adopted Resolution 2022-32054,
authorizing the Administration:
(a) to enter into negotiations for a ground lease and development agreement with TPC
with respect to Parking Lot P27 (RFP Option 3)(the "TPC project"); and
(b) to enter into negotiations for a ground lease and development agreement with Integra
with respect to Parking Lots P25 and P26 (RFP Option 5)(the "Project"); and
(c) refer both proposed projects and three accompanying amendments to the City's Land
Development Regulations and/or Comprehensive Plan for review by the Finance and
Economic Resiliency Committee, the Land Use and Sustainability Committee, and the
Planning Board, in accordance with the requirements of the City Code; and
(d) direct the Administration to maintain the RFP as open and subject to the Cone of
Silence with respect to Option 4(Garage G5)for a period of one(1)year from the date
of adoption, February 23, 2022; and
WHEREAS, Integra and the Administration negotiated a term sheet dated April 26, 2022
(the "Term Sheet"), which provided, assuming the adoption of certain land use amendments
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related to the Project, the development of:
(a) on P25, a seven-story building with three levels of Class A office space, ground floor
retail, required parking associated with the office use, and a public parking component;
and
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(b) on P26, an eight-story building with four levels of Class A office space, ground floor
retail, required parking associated with the office use, and a public parking component;
and
WHEREAS, as proposed in the Term Sheet, the City and Integra will enter a long-term
ground lease for P25 (the "P25 Ground Lease") and a long-term ground lease for P26 (the "P26
Ground Lease," and together with the P25 Ground Lease, the "Ground Leases"), and a
development agreement(the"Development Agreement")to govern the development of both sites,
with Integra responsible for financing the design and construction of the Project,with the proposed
rent structure and other key terms more fully described in the Term Sheet; and
WHEREAS, pursuant to Section 1.03(b)(2) of the City Charter governing leases of ten
years or longer of the City-owned property referred to therein as the Lincoln Road Parking Lots,
the Ground Leases require approval by a majority vote of the voters in a City-wide referendum;
and
WHEREAS, on March 30, 2022, the Finance and Economic Resiliency Committee
received an update on the negotiations from the Administration; and
WHEREAS, on April 8, 2022, the Land Use and Sustainability Committee considered the
three legislative amendments requested in support of the two projects, and transmitted the
proposed ordinances to the City Commission for consideration; and
WHEREAS, on April 29, 2022, the Finance and Economic Resiliency Committee reviewed
the Project's proposed terms and recommended that the City Commission direct the
Administration to prepare a Development Agreement and Ground Leases with Integra for the City
Commission's consideration and approval; and
WHEREAS, on May 4, 2022, the City Commission adopted Resolution No. 2022-32164,
accepting the recommendation of the Finance and Economic Resiliency Committee, approving
the Term Sheet, and directing the Administration to prepare the Development Agreement and
Ground Leases with Integra, to include terms consistent with the Term Sheet and such other
terms and conditions as are customary or otherwise necessary or desirable (as determined by
the Administration), subject to the prior approval of the City Commission, and further, referring
the proposed Project and the associated Development Agreement to the Planning Board for
review, in accordance with the requirements of the City Charter and City Code; and
WHEREAS, on May 24, 2022, the Planning Board reviewed the proposed uses for both
projects and recommended approval, with a unanimous companion motion recommending that:
(1)the City Commission consider devoting-ja portion of revenues generated from any RFP project
incorporating solely market rate residential uses be devoted to funding workforce housing
initiatives; (2)the ground leases include a prohibition against big-box retail establishments in the
Projects; and (3)the ground leases include provisions that underutilized parking spaces required
for the projects' private components (e.g. office uses) be made available for use by the public
during nonpeak hours; and
WHEREAS, the Planning Department analysis of the Ground Leases, pursuant to Section
82-38 of the City Code, is attached as an exhibit to the Commission Memorandum accompanying
this Resolution; and
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WHEREAS, as required by Section 82-39 of the City Code, the City engaged an
independent appraiser to estimate the fair market value of the Ground Leases of the properties,
and a copy of the appraisal is attached as an exhibit to the Commission Memorandum
accompanying this Resolution; and
WHEREAS, the Ground Leases are attached as an exhibit to the Commission
Memorandum accompanying this Resolution; and
WHEREAS, the Administration is supportive of the Project, in recognition of its several
intended outcomes pursuant to the goals of the RFP, including encouraging the development of
Class A office space and growing the economic base, enhancing the City's parking facilities,
creating local jobs, activating Lincoln Lane North and Lincoln Road, and generating substantial
community benefits and financial renumeration for the City; and
WHEREAS, on June 22, 2022, the City Commission approved at public hearing/second
reading the three related Lincoln Lane North GU land use amendments in support of the projects:
(i)Ordinance 2022-4497 amending the Comprehensive Plan to permit market rate residential use,
(ii) Ordinance 2022-4498 amending applicable parking regulations, and (iii)Ordinance 2022-4499
amending applicable height regulations; and
WHEREAS, on June 22, 2022, the City Commission approved on first reading the Ground
Leases with Integra and set a second reading/public hearing for July 20, 2022; and
WHEREAS, on July 20, 2022 pursuant to Section 142-425(b) of the City Code, the Mayor
and City Commission determined that the zoning district classification of the property under the
P25 Ground Lease is an average of the CD-2, Commercial Medium Intensity, and CD-3,
Commercial High Intensity zoning districts, as defined in the Land Development Regulations, and
the zoning district classification of the property under the P26 Ground Lease is subject to the
development regulations of the CD-3, Commercial High Intensity zoning district, as defined in the
Land Development Regulations; and
WHEREAS, on July 20, 2022, after a duly noticed public hearing/second reading, the
Mayor and City Commission determined that it is in the best interest of the City to enter into the
Ground Leases, and approved the Project Concept Plan and Mandatory Project Elements, as
defined therein, subject to questions related to the Ground Leases being placed on the ballot at
the November 8, 2022 General Election.
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 approve, following second reading/public hearing, as authorized under
section 82-37 of the City Code and section 1.03(b)(2) of the City Charter, a lease agreement
between the City of Miami Beach ("City") and Lincoln Road Property Owner, L.P. ("Lessee") of
the City-owned surface parking lot P25 (consisting of five (5) tax folios: 02-3234-004-0870, 02-
3234-004-0880, 02-3234-004-0890, 02-3234-004-0900 and 02-3234-004-0910) located in Miami
Beach, Florida and a lease agreement between the City and Lessee of the City-owned surface
parking lot P26 (consisting of six (6) tax folios: 02-3234-004-0710, 02-3234-004-0720, 02-3234-
004-0730, 02-3234-004-0820, 02-3234-004-0830 and 02-3234-004-0840) located in Miami
Beach, Florida (together, the "Leases"), for the construction of mixed-use developments
consisting of (1) Class A office space, (2) ground floor retail, (3) public parking to replace the
existing public parking spaces on both parking lots P25 and P26, and (4) additional parking to
satisfy off-street parking requirements for the office use(the"Project"); such Leases being subject
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to and contingent upon approval by the City Commission pursuant to section 82-37(a) and
approval by a majority vote of the voters in a city-wide referendum pursuant to section 1.03(b)(2)
of the City Charter; providing for the Project to be developed, designed, financed, constructed,
and operated in accordance with the terms of the Leases and the Development Agreement for
the Project between the City and Lessee, approved pursuant to Resolution No. 2022-
; and providing for a maximum term of ninety-nine (99) years, with an initial term of
fifty-one (51)years, and two (2) renewal terms, for a period of twenty-four(24) years each, at the
Lessee's option; and further, authorize the City Manager to finalize the Leases and make any
necessary non-substantive corrections to scrivener's errors, subject to form approval by the City
Attorney, and further, authorize the Mayor and City Clerk to execute the Leases.
PASSED AND ADOPTED this o?W day of July, 2022.
ATTEST:
JUL 2 a 2022
RAFAEL E. GRANADO, CITY CLERK DAN GELBER, MAYOR
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City Attorney isaDate
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Resolutions- R7 B
MIAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: July 20, 2022
1:31 p.m. Second Reading Public Hearing
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING SECOND
READING/PUBLIC HEARING, AS AUTHORIZED UNDER SECTION 82-37
OF THE CITY CODE AND SECTION 1.03(B)(2) OF THE CITY CHARTER, A
LEASE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH ("CITY")
AND LINCOLN ROAD PROPERTY OWNER, L.P. ("LESSEE") OF THE CITY-
OWNED SURFACE PARKING LOT P25 (CONSISTING OF FIVE (5) TAX
FOLIOS: 02-3234-004-0870, 02-3234-004-0880, 02-3234-004-0890, 02-3234-
004-0900 AND 02-3234-004-0910) LOCATED IN MIAMI BEACH, FLORIDA
AND A LEASE AGREEMENT BETWEEN THE CITY AND LESSEE OF THE
CITY-OWNED SURFACE PARKING LOT P26 (CONSISTING OF SIX (6)
TAX FOLIOS: 02-3234-004-0710, 02-3234-004-0720, 02-3234-004-0730, 02-
3234-004-0820, 02-3234-004-0830 AND 02-3234-004-0840) LOCATED IN
MIAMI BEACH, FLORIDA (TOGETHER, THE "LEASES"), FOR THE
CONSTRUCTION OF MIXED-USE DEVELOPMENTS CONSISTING OF (1)
CLASS A OFFICE SPACE, (2) GROUND FLOOR RETAIL, (3) PUBLIC
PARKING TO REPLACE THE EXISTING PUBLIC PARKING SPACES ON
BOTH PARKING LOTS P25 AND P26, AND (4) ADDITIONAL PARKING TO
SATISFY OFF-STREET PARKING REQUIREMENTS FOR THE OFFICE
USE (THE "PROJECT"); SUCH LEASES BEING SUBJECT TO AND
CONTINGENT UPON APPROVAL BY THE CITY COMMISSION PURSUANT
TO SECTION 82-37(A) AND APPROVAL BY A MAJORITY VOTE OF THE
VOTERS IN A CITY-WIDE REFERENDUM PURSUANT TO SECTION
1.03(B)(2) OF THE CITY CHARTER; PROVIDING FOR THE PROJECT TO
BE DEVELOPED, DESIGNED, FINANCED, CONSTRUCTED, AND
OPERATED IN ACCORDANCE WITH THE TERMS OF THE LEASES AND
THE DEVELOPMENT AGREEMENT FOR THE PROJECT BETWEEN THE
CITY AND LESSEE, APPROVED PURSUANT TO RESOLUTION NO. 2022-
; AND PROVIDING FOR A MAXIMUM TERM OF NINETY-NINE
(99) YEARS, WITH AN INITIAL TERM OF FIFTY-ONE (51) YEARS, AND
TWO (2) RENEWAL TERMS, FOR A PERIOD OF TWENTY-FOUR (24)
YEARS EACH, AT THE LESSEE'S OPTION; AND FURTHER,
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE
LEASES.
Page 817 of 1502.
RECOMMENDATION
Please see the Consolidated.Commission Memorandum appearing under item R7 A.
SUPPORTING SURVEY DATA
FINANCIAL INFORMATION
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
Page 818 of 1502