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Resolution 2022-32244 RESOLUTION NO. 2022-32244 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, FOLLOWING SECOND READING/PUBLIC HEARING, A DEVELOPMENT AGREEMENT, AS AUTHORIZED UNDER SECTION 118-4 OF THE CITY CODE, AND SECTIONS 163.3220 — 163.3243, FLORIDA STATUTES, BETWEEN THE CITY AND 1664 MERIDIAN, LLC (THE "DEVELOPER"),WHICH DEVELOPMENT AGREEMENT WAS (A) REVIEWED BY THE PLANNING BOARD AS REQUIRED BY SECTION 142-423; (B) DELINEATES THE TERMS AND CONDITIONS FOR THE DEVELOPMENT ON CITY-OWNED SURFACE PARKING LOT P27 (CONSISTING OF SEVEN (7) TAX FOLIOS: 02-3234-007-0560, 02-3234-007- 0570, 02-3234-007-0630, 02-3234-007-0640, 02-3234-007-0650, 02-3234-007- 0660 AND 02-3234-007-0670) LOCATED IN MIAMI BEACH, FLORIDA ("P27" OR THE "PROPERTY") CONSISTING OF (1) CLASS A OFFICE SPACE, (2) GROUND FLOOR RETAIL, (3) RESIDENTIAL RENTAL APARTMENTS, (4) PUBLIC PARKING TO REPLACE THE EXISTING PUBLIC PARKING SPACES ON P27, AND (5) ADDITIONAL PARKING TO SATISFY OFF-STREET PARKING REQUIREMENTS FOR THE OFFICE AND RESIDENTIAL USES (THE "PROJECT"); AND (C) MEMORIALIZES CERTAIN CONDITIONS PRECEDENT FOR THE CITY'S LEASE OF THE PROPERTY TO THE DEVELOPER FOR THE DEVELOPMENT, DESIGN, FINANCING, CONSTRUCTION, AND OPERATION OF THE PROJECT (THE "LEASE"); SUCH LEASE BEING SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE CITY COMMISSION PURSUANT TO SECTION 82-37(A) AND APPROVAL BY A MAJORITY OF THE VOTERS IN A CITY-WIDE REFERENDUM PURSUANT TO SECTION 1.03(B)(2) OF THE CITY CHARTER; AND FURTHER, AUTHORIZING THE CITY MANAGER TO FINALIZE THE DEVELOPMENT AGREEMENT 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 DEVELOPMENT AGREEMENT. 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 (the "RFP") for mixed-use development incorporating Class A office space at three City-owned sites along Lincoln Lane North and the 17' Street parking garage (G5); and WHEREAS, the City received proposals from the following three firms: (1) Infinity Collective LLC; (2) Lincoln Road Property Owner, L.P., a joint venture among Integra Investments, Starwood Capital, and The Comras Company (for clarity, Lincoln Road Property Owner, L.P. is referred to as "Integra"); and (3) Lincoln Road Holdings LLC, a 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 (for clarity, 1664 Meridian LLC is referred to as "TPC" or"Developer"); 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 "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 "Integra 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, TPC and the Administration negotiated a term sheet dated April 26, 2022(the "Term Sheet"), which provided, assuming the adoption of certain land use amendments related to the Project, the development on P27 of a six-story building with three levels of Class A office space, two levels of market rate residential rental units, ground floor retail, required parking for the private uses, and a public parking component; and WHEREAS, as proposed in the Term Sheet, the City and TPC will enter into a long-term ground lease for P27 (the "Ground Lease"), and a development agreement (the "Development Agreement"), with TPC 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 Lease requires approval by a majority vote of the voters in a City-wide referendum; and 2 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 the Development Agreement and Ground Lease with TPC for the City Commission's consideration and approval; and WHEREAS, on May 4, 2022, the City Commission adopted Resolution No. 2022-32163, 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 Lease with TPC, 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 a 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 of big-box retail establishments in the Project; 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 Development Agreement is attached as an exhibit to the Commission Memorandum accompanying this Resolution and includes terms consistent with the Term Sheet; 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, transforming Lincoln Lane North into a vibrant and pedestrian-friendly street that connects the Convention Center District with Lincoln Road, and generating substantial lease payments and other revenues 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 Mayor and City Commission, after a duly noticed public hearing/first reading held pursuant to the Development Agreement Act set forth in Chapter 163 of the Florida Statutes, and Sections 82-36 through 82-40 of the City Code, determined that it is in 3 the best interest of the City to enter into a Development Agreement with the Developer for the development of the Project, 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 P27 property under the 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, being a duly noticed public hearing/second reading held pursuant to the Development Agreement Act set forth in Chapter 163 of the Florida Statutes, and Sections 82-36 through 82-40 of the City Code, the Mayor and City Commission approved the Development Agreement, including the Project Concept Plan and Mandatory Project Elements, as both are defined therein, and determined that it is in the best interest of the City to enter into the Development Agreement with TPC, including placing on the ballot at the November 8, 2022 General Election questions related to the Ground Lease. 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, a Development Agreement, as authorized under section 118-4 of the City Code, and sections 163.3220 — 163.3243, Florida Statutes, between the City and 1664 Meridian, LLC (the "Developer"), which Development Agreement was (a) reviewed by the Planning Board as required by section 142- 423; (b) delineates the terms and conditions for the development on City-owned surface parking lot P27 (consisting of seven (7) tax folios: 02-3234-007-0560, 02-3234-007-0570, 02-3234-007- 0630, 02-3234-007-0640, 02-3234-007-0650, 02-3234-007-0660 and 02-3234-007-0670) located in Miami Beach, Florida ("P27" or the "Property")consisting of(1) Class A office space, (2) ground floor retail, (3) residential rental apartments, (4) public parking to replace the existing public parking spaces on P27, and (5) additional parking to satisfy off-street parking requirements for the office and residential uses (the "Project"); and (c) memorializes certain conditions precedent for the City's lease of the Property to the Developer for the development, design, financing, construction, and operation of the Project (the "Lease"); such Lease being subject to and contingent upon approval by the City Commission pursuant to section 82-37(a) and approval by a majority of the voters in a city-wide referendum pursuant to section 1.03(b)(2)of the City Charter; and further, authorize the City Manager to finalize the Development Agreement 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 Development Agreement. PASSED AND ADOPTED this 020 day of July, 2022. ATTEST: Mt, 2 5 2022 ,e, 221--._____ RAF EL E. GRANADO, CITY CLERK DAN GELBER, MAYOR t,. E�, .c a ,UiCORF ORATED.' s APPROVED AS TO W;,?:., : '. FORM & LANGUAGE . �l� ''' ` 8( FOR EXECUTION City Attorney „ (L Date Resolutions- R7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: July 20, 2022 1:32 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, A DEVELOPMENT AGREEMENT, AS AUTHORIZED UNDER SECTION 118-4 OF THE CITY CODE, AND SECTIONS 163.3220 — 163.3243, FLORIDA STATUTES, BETWEEN THE CITY AND 1664 MERIDIAN AVENUE, LLC (THE "DEVELOPER"), WHICH DEVELOPMENT AGREEMENT WAS (A) REVIEWED BY THE PLANNING BOARD AS REQUIRED BY SECTION 142-423; (B) DELINEATES THE TERMS AND CONDITIONS FOR THE DEVELOPMENT ON CITY-OWNED SURFACE PARKING LOT P27 (CONSISTING OF SEVEN (7) TAX FOLIOS: 02-3234-007-0560, 02-3234-007-0570, 02-3234-007-0630, 02-3234-007-0640, 02-3234-007-0650, 02-3234-007-0660 AND 02-3234-007-0670) LOCATED IN MIAMI BEACH, FLORIDA ("P27" OR THE "PROPERTY") CONSISTING OF (1) CLASS A OFFICE SPACE, (2) GROUND FLOOR RETAIL, (3) RESIDENTIAL RENTAL APARTMENTS, (4) PUBLIC PARKING TO REPLACE THE EXISTING PUBLIC PARKING SPACES ON P27, AND (5) ADDITIONAL PARKING TO SATISFY OFF-STREET PARKING REQUIREMENTS FOR THE OFFICE AND RESIDENTIAL USES (THE "PROJECT"); AND (C) MEMORIALIZES CERTAIN CONDITIONS PRECEDENT FOR THE CITY'S LEASE OF THE PROPERTY TO THE DEVELOPER FOR THE DEVELOPMENT, DESIGN, FINANCING, CONSTRUCTION, AND OPERATION OF THE PROJECT (THE "LEASE"); SUCH LEASE BEING SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE CITY COMMISSION PURSUANT TO SECTION 82-37(A) AND APPROVAL BY A MAJORITY OF THE VOTERS IN A CITY-WIDE REFERENDUM PURSUANT TO SECTION 1.03(B)(2) OF THE CITY CHARTER;AND FURTHER,AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE DEVELOPMENT AGREEMENT. RECOMMENDATION This Consolidated Commission Memorandum related to RFP 2021-173-KB for nixed-use developments incorporating Class A office space with respect to City-owned surface parking lots P27 Page 832 of 1502 (Lincoln Lane Project—TPC) (the"Project"), has been prepared in connection with: • R7D -the second reading/public hearing of the Development Agreement • R7E -the second reading/public hearing of the Ground Lease A Consolidated Commission Memorandum pertaining to the Integra proposal for surface parking lots P25 and P26 appears separately under agenda items R7A and R7B. Companion items related to authorization of ballot questions regarding the Ground Lease and use of rent proceeds are also included on the agenda. The Administration recommends that the Mayor and City Commission approve on second reading the Development Agreement and Ground Lease with 1664 Meridian, LLC, subject to any direction as to the policy and business issues outlined in this Memorandum, or otherwise. The goals of the proposed transaction ("Project Goals") are: • to diversify the economy and grow the economic base by reducing dependency on the tourism and hospitality industries; • to create a more resilient economy able to withstand unforeseeable shocks and circumstances; • to develop sustainable,efficient parking facilities to promote day and evening activation; • to provide local employment opportunities, attract and retain talent, and promote a live- work-play atmosphere. • to transition and promote a Miami Beach image, brand, and reputation as an economic and cultural center; • to improve and sustain Lincoln Road as a commercial hub for residents, tourists, and visitors; • t o connect the Lincoln Road corridor with the Convention Center Campus, enhance the City Center district as the City establishes itself as a mecca for industry- leading business convenings, exhibitions, and conferences; and • to generate substantial lease and other revenues for the City. If approved by a majority of the voters in a City-wide referendum, the Project transaction will collectively result, among other terms, in the following benefits for the City: • payment to the City of at least $145 million (and up to $345 million) for the lease of Project site, with the City to annually receive the greater of the Minimum Annual Guaranteed Rent or Percentage Rent including a $2 million lump sum payment. • development of sustainable parking facilities with full replacement of 151 existing public parking spaces, at no cost to the City, to remain available to the public at municipal rates in perpetuity; • retention of net parking revenues for replacement parking facilities; • construction of a new Class A office facility, at no cost to the City, with Developer to spend a minimum of$141 million in capital improvements and additional public benefits, including 0.40 acre(approximately 30%of site)of landscaped public space; • approximately$500,000-$600,000 in ad valorem property taxes to the City annually coffiriencing upon completion of construction; and • approximately 1,000 local jobs. BACKGROUND/HISTORY Page 833 of 1502 The City Commission has expressed an interest in diversifying the City's economy and its revenue sources by capitalizing on economic growth opportunities presented by the current and projected business growth in the region, particularly by making a concerted effort to increase Class A office space inventory throughout the City to attract targeted industries.At its December 11, 2019 meeting, the City Commission discussed the possibility of making available surface parking lots along Lincoln Lane North to promote the development of Class A office space in the city center/Lincoln Road area. To gauge interest from the development community, the City Commission directed staff to issue a request for letters of interest (RFLI) for the development of Class A office space on surface parking lots immediately north of Lincoln Lane. J U r CITY HALL 17th S' Ii i; tr DV UiN Douplss Gardens MFCC C,nen.,, LINCOLN ROAD R Lincoln Guth Colony The. Sir P27 Address 1664 Meridian Avenue Size 59,273 sq. ft. (1.36 acres) Parking Spaces 151 spaces Adjacent Zoning CD-3 Height allowed by Code 80 feet FAR allowed by Code 2.75 RFP Proposer TPC Annual Revenue FY22 YTD FY 18 FY19 FY20 FY 21 (as of 6/30/22) • P27 $ 674,658.86 $ 654,961.62 $ 378,562.31 $ 488,165.11 $ 486,916.39 Source: City of Miami Beach Parking Department Page 834 of 1502 On October 9, 2020, the Administration issued Request for Letters of Interest (RFLI) 2021- 029-KB seeking expression of interest from developers interested in building Class A office developments on surface parking lots P25, P26, and P27. The RFLI yielded expression of interest from eighteen (18) respondents. Based on the results of the RFLI, on February 19, 2021, the Finance and Economic Resiliency Committee (FERC or the Committee) recommended that the Administration seek City Commission authorization to prepare a Request for Proposals (RFP) for ground leases and development agreements for the development of Class A office space on three Lincoln Lane surface parking lots (P25, P26, and P27). On February 24, 2021, the City Commission discussed the results of the RFLI, accepted the FERC's recommendation, and directed the Administration to include all three surface parking lots as well as the 17th Street parking garage (parking garage G5) in a forthcoming RFP. On March 17, 2021, the City Commission adopted Resolution No. 2021-31617, authorizing the preparation of a RFP for mixed-use development incorporating Class A office space at three City-owned sites along Lincoln Lane North as well as the 17th Street parking garage (G5). On June 23, 2021, the City Commission approved the issuance of RFP 2021-173-KB for mixed-use developments incorporating Class A office space and retail on City-owned parking lots P25, P26, P27, and parking garage G5 intended to promote the Project Goals. The RFP included multiple site options for proposed development. Key RFP Terms • 50% of floor area ratio (FAR) must be Class A office Required Class A space. Office and Retail • Ground floor portions must include an activated liner Space of retail, restaurant, personal service, or similar active uses. • In-kind replacement of existing public parking spaces, in addition to satisfying off-street parking Replacement Parking requirements for proposed uses. • Project must be staged to minimize the number of parking spaces temporarily displaced during development. • 99-year maximum lease term with a 51-year initial term and two 24-year renewal options. Lease Term • Triple net lease with Lessee responsible for all real estate taxes, utilities, assessments or other public charges, insurance, maintenance, and all other costs and expenses associated with the operation. • Lease of all three lots would require approval by a majority of voters (i.e., greater than 50%) in a citywide referendum ("Referendum"). • Development agreement and ground lease between City and one or both Developers must be in final Page 835 of 1502 form and approved by City Commission prior to placement of Referendum question(s) on the ballot. To qualify for November 8, 2022 General Election, Voter Referendum for ballot items must be submitted to Miami-Dade Lease Approval County by July 29, 2022. • At City Commission's sole discretion, the Referendum could be scheduled for a special election on a different date if: (1) the development agreement and lease for the applicable project are finalized and approved by City Commission and (2) the Developer pays its pro-rated share (based on total number of ballot questions) of the cost of a special election (approximately$400,000). Existing Office Market Conditions The Class A office sector, in Miami Beach and Miami-Dade County, has been particularly resilient throughout the pandemic and thereafter. LTC 165-2021 provided comprehensive data and analysis demonstrating favorable market trends and the influx of targeted business industry, all of which supported the City's initiatives to attract office users and new development including the REP. Today, current market conditions continue to suggest a favorable market outlook. Vacancy for Class A office space in Miami Beach decreased from 16.8% in Q1 2022 to 14.9% in Q2 2022 according to Jones Lang LaSalle. [1] A more noteworthy market indicator is Miami Beach's sustained growth in asking rents month after month. In 2022, JLL reports that average asking rent for Class A office space in the city has increased by nearly 30% over Q4 2021, from $63.12 in Q4 2021 to $81.18 in Q2 2022. This growth is demonstrated by Deco Capital's Eighteen Sunset project at 1845 Purdy Avenue, where asking leasing rates have surpassed $100 per square foot according to the South Florida Business Journal [2] , a record rental rate on par with New York City and witnessed for the first time only recently in Miami-Dade County. 1 Q2 2022 Office Market Report. Jones Lang LaSalle. https://www.us.jll.com/en/trends-and- insights/research/office-market-statistics-trends/miami. (July 7, 2022) 2 Eighteen Sunset developers snag $60M in construction funding. South Florida Business Journal https://www bizjoumals.com/southflorida/news/2022/02/01/60-million-mortgage-for- eighteen-sunset.html. (February 1, 2022) RFP Award RFP responses were due on January 12, 2022. The City received proposals from three firms: Infinity Collective LLC, Lincoln Road Holdings LLC, and Lincoln Road Property Owners, L.P. On February 1, 2022, the Evaluation Committee reviewed and evaluated proposals. Upon review of the Evaluation Committee results and an assessment of the proposals, the City Manager recommended that the Mayor and City Commission authorize the City Administration to: • Negotiate with Lincoln Road Property Owner, L.P., a Delaware limited partnership comprised of Integra Investments, Starwood Capital Group, and The Comras Company ("Integra") with regard to Parking Lots P25 and P26 (RFP Option 5); Page 836 of 1502 and • Negotiate with Lincoln Road Holdings LLC, now known as 1664 Meridian, LLC, a Florida limited liability company, comprised of The Peebles Corporation, Scott Robins Companies, Inc., and the Baron Corporation ("TPC") with regard to Parking Lot P27 (RFP Option 3). On February 23, 2022, via Resolution No. 2022-32054, the City Commission accepted the recommendation of the City Manager and authorized the Administration to negotiate with the proposers. In addition to referring any potential land use amendments to appropriate land use boards, the Resolution also referred the projects to the FERC as a means of providing the Administration with direction during negotiations. Although the RFP invited proposals to develop four sites (P25, P26, P27, and G5, or a combination thereof), at present, negotiations have included only three sites: P25 and P26 combined, and P27. Land Use Amendments Adopted for the Projects In accordance with the provision in the City Code allowing for zoning to be determined by a development agreement, the RFP stated that "Proposals shall be guided by the Land Development Regulations [LDRs], however, proposed changes to the Land Development Regulations will be considered." On April 8, 2022, the Land Use and Sustainability Committee ("LUSC") provided feedback on three legislative amendments requested in support of the two projects: 1. An amendment to Policy RLU 1.1.17 of the 2040 Comprehensive Plan, to allow for all residential uses (currently, only workforce and affordable housing are permitted), as well as mixed-use developments, as an allowable use in the Public Facility (PF) Govemment Uses (GU) future land use category. This ordinance only applies to the TPC project, as Integra's project does not include a residential component. 2. An amendment to Chapter 130 of the LDRs to create a minimum off-street public parking requirement for projects pursuant to development agreements on City-owned land in parking district No. 2. Effectively, this ensures that the public-serving Replacement Parking Component (a required component) does not count towards FAR. Additionally, the proposal creates the ability for developments in parking districts No. 2 and No. 3 to provide additional parking spaces in accordance with the minimum requirements set forth in parking district No. 3. An amendment to Chapter 142 of the LDRs to allow for a maximum building height of 100 feet (in lieu of 75-85 feet) for GU properties developed by the private sector and incorporating public parking spaces owned by and/or operated for the City. The applicable area for the proposed height increase is bounded by 17th Street on the north, Lincoln Lane North on the south, Alton Road on the west, and Washington Avenue on the east. The amendment will allow Integra to incorporate additional floor-to-ceiling height on P25 and an additional convertible office floor on P26. The amendment will enable TPC to avoid the need for below-grade parking and to increase floor-to-ceiling height in its project. By vote of acclamation at the April 8, 2022 meeting, the LUSC transmitted the proposed parking ordinance and the Comprehensive Plan amendment with a favorable recommendation, with the caveat that the Comprehensive Plan amendment should apply only to those developments within the City Center area. The LUSC voted 2-1 to transmit the height ordinance to the City without any recommendation. The Administration supported the subject ordinances as they would enhance the leasable spaces within each project, thereby attracting higher quality Page 837 of 1502 tenants—a main objective of the RFP—and, ultimately, offering a better financial return to the City. On April 26, 2022, the Planning Board reviewed and transmitted the three ordinances to the City Commission with a favorable recommendation. The Planning Board also recommended that any market rate residential housing development include a portion of workforce and/or affordable housing. On May 4, 2022, the City Commission approved on first reading the three related Lincoln Lane North GU land use amendments. On May 17, 2022, the Florida Department of Transportation provided written confirmation of its finding that the proposed Comprehensive Plan amendment would not adversely impact transportation resources and facilities of State importance. On June 2, 2022, the Florida Department of Economic Opportunity ("DEO") provided notice that it had no comment on the proposed amendment, meaning that the City was authorized to proceed with the amendment. On June 22, 2022, the City Commission approved on first reading/public hearing the draft Development Agreements and Ground Leases and set second reading for July 20, 2022. In addition, the City Commission approved on second reading the three related Lincoln Lane North GU land use amendments: (i) Ordinance 2022-4497 the Comprehensive Plan amendment providing for market rate residential use, (ii) Ordinance 2022-4498 amending the parking regulations, and (iii) Ordinance 2022-4499 amending the height regulations. Negotiation of Deal Terms and Recommendations and Approvals by FERC and Planning Board On March 30, 2022, the FERC received an initial update on negotiations from the Administration and requested that subsequent agenda items present the proposed projects' terms in tandem side-by-side to facilitate the Committee's comparison of both projects. On April 19, 2022, the FERC reviewed the draft Term Sheets and provided feedback on the projects as proposed. Among the issues discussed by the Committee were the appraised land value of each of the three sites, the Proposers' estimated construction cost per space of the Replacement Parking component to be developed for and delivered to the City, and the Committee's desire to see unique and/or independent commercial businesses as the projects' retail tenants. The Committee noted that Lincoln Road's character was fundamentally altered as international retail brands overtook smaller, local retailers and the Committee expressed a desire for the developments on P25, P26, and P27 to seek retail tenants that would bring back some of Lincoln Road's prior charm. On April 29, 2022, the FERC discussed the Term Sheets again and transmitted both Term Sheets to the City Commission with a favorable recommendation for preparation of Development Agreements and Ground Leases. On May 4, 2022, via Resolution Nos. 2022-32163 and 2022-32164, the Mayor and City Commission accepted the recommendation of the FERC, approved both Term Sheets, directed the Administration to negotiate separate Development Agreements and Ground Leases with the respective parties, and referred the proposed Projects to the Planning Board for review in accordance with the requirements of the City Charter and City Code. Page 838 of 1502 On May 24, 2022, the Planning Board reviewed the proposed uses of both projects and favorably recommended approval (5-1). The Planning Board adopted (6-0) a second motion recommending that: (1)the City Commission consider devoting a portion of revenues generated from any project incorporating solely market rate residential uses to fund workforce housing initiatives; (2) the prohibition of big-box retail establishments in the Ground Leases; and (3) where possible, provision 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. A list of public meetings, communications, and information associated with the RFP and the Projects is attached as an exhibit. ANALYSIS Conducting development and lease negotiations simultaneously with separate proposers on two complex development projects has been challenging in light of the July 29, 2022 deadline for placing referendum questions on the November 2022 ballot. With a view toward finalizing agreements with both Proposer teams by such date, and in order for the City Commission to approve resolutions authorizing ballot questions that accurately describe the material lease terms, the Administration and City Attorney's Office have dedicated considerable staff resources and participated in regularly scheduled meetings with both Proposer teams multiple times per week to establish and refine the specifics of the deal terms. TPC's proposed Development Agreement is attached as Exhibit A and the proposed Ground Lease is attached as Exhibit B. P27 (TPC)— Key Terms 1664 Meridian, LLC, a joint venture among The Peebles Developer Team Corporation, Scott Robins Companies, Inc., and the Baron Corporation, referred to herein as "TPC" • 99 years: 51 years +two (2)24-year extensions • "Effective Date" for purposes of commencement of each project and, accordingly, for purposes of Lease Term the milestones set forth below shall mean the date established in the notice to proceed issued by the City, which in any event shall be no earlier than the later to occur of: execution of the definitive project documents and certification of the referendum results • Total Building Gross SF: 288,000 sf • Total Building FAR: 162,000 sf • Office: 81,500 sf(50% FAR) • Retail: 10,500 sf • Residential: 70,000 sf (Approximately 43 market rate Proposed units) Site Plan 6 stories (2 levels of residential, 3 levels of office, ground Page 839 of 1502 floor rPId1,(71PIC)pa1Ts{vraed across office and retail levels) *Percentage refers to the approximate percentage of floor area attributable to total FAR. • Temporary Certificate of Occupancy (TCO) is required to be achieved at 64 months from Effective Date* • However, the dates for achievement of construction Construction milestones are subject to extensions in the case of Timeline Economic Force Majeure, City Delays, and certain Unavoidable Delays, including but not limited to Force Majeure events, Unanticipated Site Conditions, and Project Approval Delays and lawsuits, as further described in the Development Agreement. Below are Key Financial Terms, for full financial terms and annual rent payments, please refer to Financial Proposal Table in Exhibit D. • Initial Lump Sum Payment, at Target Date for Construction Commencement (no later than 23 months after Effective Date): $2M • Construction Rent, beginning at Construction Commencement (no later than 23 months after Effective Date): $150,000 • Guaranteed Annual Rent, beginning at Construction Completion (no later than 43 months after Effective Date): $680,000 • Rent Escalations (Guaranteed Annual Rent), commencing on the one-year anniversary of the Target Date for Construction Completion (i.e. 55 months after Effective Date): o Year 1-5: 1.5% (Year 1 commences in month 55 from Effective Date for these purposes, i.e., approximately 4.5 years into the Initial Term) o Year 6-10 (commencing in month 115 from Effective Date, i.e., approximately 9.5 years into the Initial Term): CPI with floor of 1.5% and ceiling of 2% o Year 11-15 (commencing in month 175 from Effective Date, i.e., approximately Rent 14.5 years into the Initial Term): CPI with floor of 1.5% and ceiling of 2.5% o Year 16 through end of Initial Term (commencing in month 235 from Effective Date, i.e., approximately 19.5 years into Page 840 of 1502 P27 (TPC)t4 (byti1brnsn): CPI with floor of 1.5% and ceiling of 3% • Percentage Rent Participation: 5% of Effective Gross Income (or Guaranteed Annual Rent, whichever is greater) • Base Rent Reset: At time of rent reset, hypothetical rent would be calculated based on year when full rent (i.e., $680,000) commences, escalated through the rent reset date by the higher of 2% or CPI (uncapped). This would occur at years 51 (for years 52-75) and year 75 (for years 76-99). • UPDATE: Transaction Rent City to receive 1.5% of the gross proceeds on every sale capped at $2M, subject to inflation; No Transfer Rent on the first transfer by Developer of all or a portion of the Project provided such sale occurs within the first 5 years from the Permitted Transfer Date; if sale by Developer occurs on or after the fifth anniversary of the Permitted Transfer Date, Transaction Rent applies. • Upon project completion, 100% of net revenues City Parking collected from the 151 replacement parking Revenue spaces provided back to the City. • Lease is "triple net" however, if the City elects to operate the Replacement Parking Component, the Insurance, City would be responsible for costs and expenses Taxes, Utilities attributable to the Replacement Parking Component. • Developer permitted to use one mortgage lender and one mezzanine lender, provided that, in each case, an Institutional Lender shall be used and loan-to-cost ratio for construction financing or loan- to-value ratio for permanent financing) shall not exceed 90%. • In no event shall the City's fee interest in the Project Property be subordinate to any mortgage or liens Financing and the City shall have first priority right of payment of rent at all times. • Developer shall maintain at least 10% equity in the Project, including Developer's initial equity contribution to the Project. • The City is not and shall not be required to provide any funding or financing for the Project, including without limitation, any tax credits and/or subsidies. Page 841 of 1502 PahriBC1)ek1PeyrTeahretain 10% ownership interest Restriction on until such time as there are leases in place with Transfer respect to at least 85% of the leasable office space. • Developer may terminate the Development Agreement at any time prior to issuance of the building permit if: 1. any of the Required Approvals render the Project economically unfeasible in the reasonable business judgment of Developer; 2. the Project cannot meet concurrency requirements under Section 163.3180, Florida Statutes, or the costs of concurrency mitigation are, in the reasonable business judgment of Developer, economically unfeasible; Limited 3. Developer, after diligent, good faith efforts, has been Termination unable to obtain a full building permit for the Project Rights pursuant to the Approved Plans; 4. Developer, after diligent, good faith efforts, is unable to secure adequate financing on financial terms that are commercially reasonable; or 5. there shall exist any material adverse change in regional, national or global economic conditions that in the Developer's reasonable and good faith judgment would materially, adversely affect the financial viability of the Project. • The City possesses no right to terminate for convenience once the agreements are executed. • City may terminate the Development Agreement for cause as a result of any default by Developer which continues beyond the expiration of any applicable notice and cure period in the Termination for Development Agreement and the Ground Lease. Cause • In any event of termination by Developer or by the City as a result of a default by Developer: (i) the (Development Developer shall assign to the City all right, title, and Agreement) interest in and to the Plans and any other materials pertaining to the Project and (ii) the City shall have no further obligation to the Developer following such termination, financial or otherwise, other than those obligations, if any, which expressly survive such termination. • Developer has executed an agreement pledging to reimburse the City for the City's out of pocket transactional and professional costs and expenses associated with the due diligence, negotiation, and Page 842 of 1502 P2 1Til )efKelyeTefdeeelopment Agreement and Reimbursement Ground Lease and development of the Project, up of City Expenses to $150,000.00, including without limitation fees for the City's parking bond covenant analysis, real estate and transaction appraisals and other required reports; the City's outside counsel and paralegal fees; and any surveys, environmental assessments (if any), title searches, and other reviews engaged by the City. TPC's RFP response proposed a Project that will: • Activate, revitalize, enhance and bring new life and Proposed/ energy to this part of the City; Preliminary • Serve as a benefit to the City by improving and Public replacing the City Spaces with covered, secure and Benefits structured parking. • Create new rental housing for City residents • Create new Class-A office space; • Further the City's sustainability and resiliency efforts for new development; • Improve lighting, providing increased safety for area; • Create temporary and construction jobs and long- term permanent jobs; • Increase the tax base and increase the tax revenue to the City; • Provide landscaped public space and overall beautification of the area surrounding the Project; • Create a live, work, and play environment within the Project; • Provide economic stimulus to the City; • Encourage future development of areas surrounding the Project; and • Create a pedestrian walkway connecting the Lincoln Lane neighborhood with landscaping, lighting, benches, and storefronts. • Retail programming (RFP proposal): Activate the alleyway with community- oriented retail and building-oriented retail, which supports the live-work-play lifestyle that underpins the key leasing strategy o Retail designed to complement rather than compete with Lincoln Road, e.g., smaller retail bays and targeting service, entertainment, and restaurants tenants rather than traditional retailers. The effectiveness of the Ground Leases and the Referendum Development Agreement are contingent upon voter approval Requirement of the Ground Leases at the November 8, 2022 general election in accordance with the City Charter. In the event the Page 843 of 1502 Refer flrRiP0)t-sKutopTsiuhsr if the ballot question(s) are not approved, for whatever reason, the Ground Leases and Development Agreement shall be null and void Page 844 of 1502 Considerations previously discussed with the City Commission on May 4, 2022 and June 22, 2022: Page 848 of 1502 1. Transaction Rent to City upon Developer's Sale of Leasehold I nterest The Development Agreement does not permit the Developer to transfer its leasehold interest in the property to an unaffiliated entity until completion of project construction. Thereafter, during the Term of the Ground Lease, limited transfer of interests may be allowed, subject to restrictions enumerated in the Ground Lease. Although financial terms had been largely developed and memorialized in the final Term Sheet, on May 4, 2022 meeting, members of the City Commission expressed a desire that if, at a later date following completion of construction of the Project, if the Developer (or subsequent Ground Lessee) decides to sell or transfer its leasehold interest in the property, then the City should stand to benefit from a portion of the sales proceeds inuring to the Developer(or Ground Lessee). The Ground Lease now requires the payment of so-called "Transfer Rent" which requires the payment of 1.5% of the gross proceeds on every sale capped at $2M, (subject to inflation). No Transfer Rent is payable on the first transfer by Developer of all or a portion of the Project provided such sale occurs within the first 5 years from the Permitted Transfer Date; if a sale by Developer occurs on or after the fifth anniversary of the Permitted Transfer Date, Transaction Rent applies. 2. Replacement of City Parking Revenue during Construction Developer must present to city a parking mitigation plan, acceptable to the City in its reasonable discretion, that addresses both loss of parking within proximity (not greater than '/2 mile) of the P27 site and loss of revenue during construction. Other relevant considerations: Land Appraisal As required by Section 82-37(b) of the City Code governing leases of ten years or more, a real estate appraisal report ("Appraisal Report') has been prepared for the City Commission's review of the Ground Leases.An independent consultant, CBRE, Inc., was selected following a request for quotes submitted to the City's prequalified pool of real estate appraisers, firms that were selected by the City Commission via Resolution No. 2018-30585. A preliminary draft Appraisal Report was discussed by the F E RC on April 19, 2022. The appraiser employed a sales comparison approach to determine fee simple value of each of the three sites, including the benefit to the City of the development of public parking facilities. Recent comparable sales of nearby properties were compared to each subject site, as if vacant and available, to be put to its highest and best use, with adjustments applied to account for differences in factors such as location, property shape, view corridors, zoning, market conditions at time of sale, etc. The sales used in this analysis are considered comparable to the subject sites, and the required adjustments were based on industry best practices. CBRE indicated that the required Referendum did not factor into its land valuation. The Appraisal Report is attached as Exhibit C. ii. Project Construction Phasing and Implications for Project Development Page 849 of 1502 The Administration notes that if both the Integra and TPC Projects are approved by the City Commission and by a majority of the City's voters in the Referendum, construction of the two Projects will likely be phased. Project sequencing will take into account all appropriate factors, including impacts on parking availability in the area and other area impacts such as the construction of the Miami Beach Convention Center Hotel, provided that the City may also make a determination, in its reasonable discretion, that both Projects can reasonably be constructed in tandem or otherwise simultaneously without having a material adverse impact on the City's residents, businesses, and visitors. The uncertainty at the present time as to the sequencing of the two Projects may adversely affect development and construction costs for the Projects, and both TPC and Integra have expressed concern with the possibility that their respective Projects will not be first noticed to proceed. The determination as to phasing and order of commencement (i) shall be made in the City's reasonable discretion no later than sixty(60)days following official certification of the Referendum results and (ii) shall be final and binding on the Developers with no right of appeal. iii. Operation of the City's Public Parking Replacement Component TPC's Project will contain Replacement Parking equal to the number of spaces currently existing on P27, and the City will be entitled to the net revenues from these spaces that are anticipated to be consistent with current collections. As negotiated, the City shall operate all Public Parking Replacement Components for each Project, provided that, the City shall have the right, in its sole discretion, to decide that the Developer shall operate the Public Parking Replacement Components if notice is provided to the Developer by or before sixty (60) days following official certification of the Referendum results. If the City elects to operate the Public Parking Replacement Component, applicable terms will be incorporated into a separate operating agreement. If the City requires Developer to operate the Public Parking Replacement Component, the Developer and the City will negotiate terms such as standards of operation, responsibility for costs and expenses, etc. In all circumstances, the City and Developer stipulate that parking rates for Public Parking Components shall not be higher than the City's then- applicable rates for similar parking facilities. SUPPORTING SURVEY DATA According to the 2022 Resident Satisfaction Survey, Lincoln Road is the top-ranking Miami Beach landmark that residents enjoy visiting, with 60% of our residents selecting it among their top places to visit, as reported in the 2019 Resident Satisfaction Survey. Enhancement of the Lincoln Road area will improve the resident and visitor experience. On June 30, 2022, Letter to Commission (LTC) 258-2022 shared the Lincoln Road Business Improvement District's (LRBID) letter to the City Commission in support of the proposed Projects. The LRBID noted that it had met with both Developer groups to review the Proposed project plans and the LRBID's executive committee unanimously approved an expression of support, requesting the City Commission move the items forward to the November vote of the electorate. FINANCIAL INFORMATION Page 850 of 1502 The proposed rental payments and financial terms are detailed in the Analysis section with the proposed annual payments outlined in Exhibit D. The Development Agreement and Ground Leases stipulate that the City will not provide any funding or financing for the Project and the Administration has incorporated additional measures to limit the City's exposure: the City's fee simple interest in the property will not be subordinate to any mortgage, City has first priority right of payment of rent, the loan-to-cost ratio for construction financing and loan-to-value financing for permanent financing shall not exceed 90%, and the Developer must maintain 10% equity in the Project. Regarding the City's necessary costs during negotiations, each developer has executed an agreement pledging to reimburse the City for up to $150,000 for the City's expenses including costs related to independent consultant studies and outside counsel. CONCLUSION This Project proposes to meaningfully transform underutilized City parking assets into a resilient, state-of-the-art LEED certified building offering desirable uses and amenities that will serve the public, activate the neighborhood, and spur economic development—all at zero financial cost whatsoever to taxpayers. In fact, the associated financial benefits from the Project —in addition to the retention of existing parking revenues—will continuously grow General Fund revenues and enhance the local tax base year after year, without the City assuming any of the risks inherent to construction and operation of $100+ million mixed-use commercial developments. The Administration recommends that the City Commission approve on Second Reading the Development Agreement and Ground Lease, including the Project's Concept Plan and Mandatory Project Elements. Further, the Administration recommends the City Commission adopt the resolutions authorizing placing on the ballot at the November 8, 2022 General Election the questions related to the Ground Lease and use of the Rent Payments. 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 D - Financial Proposal ❑ Attachment E - Planning Analysis Page 851 of 1502 ❑ Attachment F - Project Concept Plan ❑ Attachment G - Project Overview and Timeline of Public Meetings D Ad Page 852 of 1502 ATTACHMENT D Financial Proposal P27 - TPC (1664 MERIDIAN AVENUE LLC) RENT AMOUNT PRESENT VALUE Minimum Rent $ 145,704,144.30 $ 17,865,109.46 Percentage Rent(EGI) $ 345,408,801.48 $ 25,136,692.27 Minimum w/Parking $ 248,551,688.06 $ 32,111,289.63 Percentage w/Parking $ 448,256,345.24 $ 39,382,872.44 ASSUMPTIONS LDR and Comprehensive Plan Amendments are Approved Minimum Rent Growth: Parking: All residential units are Market Rate Years 1-5(month 55) 1.50% Spaces 151 Minimum Rent increase.no rent resets for this model. Years 6-10(month 115) CPI (1.5%up to 2%) Revenue/space $4,422.23 Effective Gross Income(EGI)revenue increases 3%/year Years 11-15(month 175) CPI (1.5%up to 2.5%) Expense 10% Present Value Discount Rate: 5% Years 16+(month 235) CPI (1.5%up to 3%) Rev. Growth/yr 1% Percentage rent based on estimates/projections. Revised Guaranteed Percentage Rent Minimum Rent (Higher of Base or 5%of Retained City Total City Compensation Total City Compensation(w/ Lease Year (Market Rate) EGI) Parking Revenue (w/Minimum Rent) Percentage Rent) 1 $ - $ - $ 619,191.38 $ 619.191.38 $ 619,191.38 2 $ 2,025,000 $ 2,025,000 $ 521,153 $ 2,546,153 $ 2,546,153 3 $ 150,000 $ 150,000 $ - $ 150,000 $ 150,000 4 $ 415,000 $ 415,000 $ 318,977 $ 733,977 $ 733,977 5 $ 690,200 $ 690,200 $ 644,333 $ 1,334,533 $ 1,334,533 6 $ 699,690 $ 699,690 $ 650,776 $ 1,350,467 $ 1,350,467 7 $ 710,186 $ 710,186 $ 657,284 $ 1,367,470 $ 1,367,470 8 $ 720,838 $ 721,283 $ 663,857 $ 1,384,695 $ 1,385,140 9 $ 731,651 $ 742,921 $ 670,496 $ 1,402,147 $ 1,413,417 10 $ 742,626 $ 765,209 $ 677,200 $ 1,419,826 $ 1,442,409 11 $ 753,765 $ 788,165 $ 683,973 $ 1,437,738 $ 1,472,138 12 $ 765,072 $ 811,810 $ 690,812 $ 1,455,884 $ 1,502,622 13 $ 776,548 $ 836,164 $ 697,720 $ 1,474,268 $ 1,533,885 14 $ 788.196 $ 861,249 $ 704,698 $ 1,492,893 $ 1,565,947 15 $ 800,019 $ 887,087 $ 711,745 $ 1,511,763 $ 1,598,831 16 $ 812,019 $ 913,699 $ 718,862 $ 1,530,881 $ 1,632,561 17 $ 824,199 $ 941,110 $ 726,051 $ 1,550,250 $ 1,667,161 18 $ 836,562 $ 969,344 $ 733,311 $ 1,569,873 $ 1,702,655 19 $ 849,111 $ 998,424 $ 740,644 $ 1,589,755 $ 1,739,068 20 $ 861,847 $ 1,028,377 $ 748,051 $ 1,609,898 $ 1,776,427 21 $ 874,775 $ 1,059,228 $ 755,531 $ 1,630,306 $ 1,814,759 22 $ 887,897 $ 1,091,005 $ 763,086 $ 1,650,983 $ 1,854,091 23 $ 901,215 $ 1,123,735 $ 770,717 $ 1,671,933 $ 1,894,452 24 $ 914,733 $ 1,157,447 $ 778,425 $ 1,693,158 $ 1,935,872 25 $ 928,454 $ 1,192,171 $ 786,209 $ 1,714,663 $ 1,978,379 26 $ 942,381 $ 1,227,936 $ 794,071 $ 1,736,452 $ 2,022,006 27 $ 956,517 $ 1,264,774 $ 802,012 $ 1,758,529 $ 2,066,785 28 $ 970,865 $ 1,302,717 $ 810,032 $ 1,780,896 $ 2,112,749 29 $ 985,428 $ 1,341,798 $ 818,132 $ 1,803,560 $ 2,159,930 30 $ 1,000,209 $ 1,382,052 $ 826,313 $ 1,826,522 $ 2,208,366 31 $ 1,015,212 $ 1,423,514 $ 834,576 $ 1,849,789 $ 2,258,090 32 $ 1,030,441 $ 1,466,219 $ 842,922 $ 1,873,363 $ 2,309,142 33 $ 1,045,897 $ 1,510,206 $ 851,351 $ 1,897,249 $ 2,361,557 34 $ 1,061,586 $ 1,555,512 $ 859,865 $ 1,921,451 $ 2,415,377 35 $ 1,077,509 $ 1,602,177 $ 868,464 $ 1,945,973 $ 2,470,641 36 $ 1,093,672 $ 1,650,243 $ 877,148 $ 1,970,820 $ 2,527,391 37 $ 1,110,077 $ 1,699,750 $ 885,920 $ 1,995,997 $ 2,585,670 38 $ 1,126,728 $ 1,750,743 $ 894,779 $ 2,021,507 $ 2,645,521 39 $ 1,143,629 $ 1,803,265 $ 903,727 $ 2,047,356 $ 2,706,992 40 $ 1,160,784 $ 1,857,363 $ 912,764 $ 2,073,548 $ 2,770,127 41 $ 1,178,195 $ 1,913,084 $ 921,892 $ 2,100,087 $ 2,834,975 42 $ 1,195,868 $ 1,970,476 $ 931,111 $ 2,126,979 $ 2,901,587 43 $ 1,213,806 $ 2,029,590 $ 940,422 $ 2,154,228 $ 2,970,012 44 $ 1,232,013 $ 2,090,478 $ 949,826 $ 2,181,839 $ 3,040,304 45 $ 1,250,494 $ 2,153,193 $ 959,324 $ 2,209,818 $ 3,112,517 46 $ 1,269,251 $ 2,217,788 $ 968,917 $ 2,238,168 $ 3,186,706 47 $ 1,288,290 $ 2,284,322 $ 978,607 $ 2,266,896 $ 3,262,928 48 $ 1,307,614 $ 2,352,852 $ 988,393 $ 2,296,007 $ 3,341,244 Page 853 of 1502 Revised Guaranteed Percentage Rent Minimum Rent (Higher of Base or 5%of Retained City Total City Compensation Total City Compensation(wl Lease Year (Market Rate) EGI) Parking Revenue (w/Minimum Rent) Percentage Rent) 49 $ 1,327,228 $ 2,423,437 $ 998,276 $ 2,325,505 $ 3,421,714 50 $ 1,347,137 $ 2,496,140 $ 1,008,259 $ 2,355,396 $ 3,504,400 51 $ 1,367,344 $ 2,571,025 $ 1,018,342 $ 2,385,686 $ 3,589,366 52 $ 1,387,854 $ 2,648,155 $ 1,028,525 $ 2,416,379 $ 3,676,681 53 $ 1,408,672 $ 2,727,600 $ 1,038,811 $ 2,447,482 $ 3,766,410 54 $ 1,429,802 $ 2,809,428 $ 1,049,199 $ 2,479,000 $ 3,858,627 55 $ 1,451,249 $ 2,893,711 $ 1,059,691 $ 2,510,939 $ 3,953,401 56 $ 1,473,018 $ 2,980,522 $ 1,070,288 $ 2,543,305 $ 4,050,810 57 $ 1,495,113 $ 3,069,938 $ 1,080,990 $ 2,576,103 $ 4,150,928 58 $ 1,517,540 $ 3,162,036 $ 1,091,800 $ 2,609,340 $ 4,253,836 59 $ 1,540,303 $ 3,256,897 $ 1,102,718 $ 2,643,021 $ 4,359,615 60 $ 1,563,407 $ 3,354,604 $ 1,113,745 $ 2,677,153 $ 4,468,349 61 $ 1,586,858 $ 3,455,242 $ 1,124,883 $ 2,711,741 $ 4,580,125 62 $ 1,610,661 $ 3,558,899 $ 1,136,132 $ 2,746,793 $ 4,695,031 63 $ 1,634,821 $ 3,665,666 $ 1,147,493 $ 2,782,314 $ 4,813,159 64 $ 1,659,343 $ 3,775,636 $ 1,158,968 $ 2,818,311 $ 4,934,604 65 $ 1,684,234 $ 3,888,905 $ 1,170,558 $ 2,854,791 $ 5,059,463 66 $ 1,709,497 $ 4,005,572 $ 1,182,263 $ 2,891,760 $ 5,187,836 67 $ 1,735,140 $ 4,125,740 $ 1,194,086 $ 2,929,225 $ 5,319,826 68 $ 1,761,167 $ 4,249,512 $ 1,206,027 $ 2,967,193 $ 5,455,539 69 $ 1,787,584 $ 4,376,997 $ 1,218,087 $ 3,005,671 $ 5,595,084 70 $ 1,814,398 $ 4,508,307 $ 1,230,268 $ 3,044,666 $ 5,738,575 71 $ 1,841,614 $ 4,643,556 $ 1,242,571 $ 3,084,184 $ 5,886,127 72 $ 1,869,238 $ 4,782,863 $ 1,254,996 $ 3,124,234 $ 6,037,859 73 $ 1,897,277 $ 4,926,349 $ 1,267,546 $ 3,164,823 $ 6,193,895 74 $ 1,925,736 $ 5,074,139 $ 1,280,222 $ 3,205,957 $ 6,354,361 75 $ 1,954,622 $ 5,226,363 $ 1,293,024 $ 3,247,646 $ 6,519,387 76 $ 1,983,941 $ 5,383,154 $ 1,305,954 $ 3,289,895 $ 6,689,109 77 $ 2,013,700 $ 5,544,649 $ 1,319,014 $ 3,332,714 $ 6,863,663 78 $ 2,043,906 $ 5,710,989 $ 1,332,204 $ 3,376,110 $ 7,043,192 79 $ 2,074,564 $ 5,882,318 $ 1,345,526 $ 3,420,090 $ 7,227,844 80 $ 2,105,683 $ 6,058,788 $ 1,358,981 $ 3,464,664 $ 7,417,769 81 $ 2,137,268 $ 6,240,551 $ 1,372,571 $ 3,509,839 $ 7,613,122 82 $ 2,169,327 $ 6,427,768 $ 1,386,297 $ 3,555,624 $ 7,814,065 83 $ 2,201,867 $ 6,620,601 $ 1,400,160 $ 3,602,027 $ 8,020,761 84 $ 2,234,895 $ 6,819,219 $ 1,414,161 $ 3,649,056 $ 8,233,380 85 $ 2,268,418 $ 7,023,796 $ 1,428,303 $ 3,696,721 $ 8,452,098 86 $ 2,302,445 $ 7,234,509 $ 1,442,586 $ 3,745,031 $ 8,677,095 87 $ 2,336,981 $ 7,451,545 $ 1,457,012 $ 3,793,993 $ 8,908,556 88 $ 2,372,036 $ 7,675,091 $ 1,471,582 $ 3,843,618 $ 9,146,673 89 $ 2,407,617 $ 7,905,344 $ 1,486,298 $ 3,893,914 $ 9,391,641 90 $ 2,443,731 $ 8,142,504 $ 1,501,161 $ 3,944,891 $ 9,643,665 91 $ 2,480,387 $ 8,386,779 $ 1,516,172 $ 3,996,559 $ 9,902,951 92 $ 2,517,593 $ 8,638,383 $ 1,531,334 $ 4,048,927 $ 10,169,717 93 $ 2,555,357 $ 8,897,534 $ 1,546,647 $ 4,102,004 $ 10,444,181 94 $ 2,593,687 $ 9,164,460 $ 1,562,114 $ 4,155,801 $ 10,726,574 95 $ 2,632,592 $ 9,439,394 $ 1,577,735 $ 4,210,327 $ 11,017,129 96 $ 2,672,081 $ 9,722,576 $ 1,593,512 $ 4,265,593 $ 11,316,088 97 $ 2,712,162 $ 10,014,253 $ 1,609,447 $ 4,321,610 $ 11,623,700 98 $ 2,752,845 $ 10,314,680 $ 1,625,542 $ 4,378,387 $ 11,940,222 99 $ 2,794,137 $ 10,624,121 $ 1,641,797 $ 4,435,935 $ 12,265,918 Total $ 145,704,144 $ 345,408,801 $ 102,847,544 $ 248,551,688 $ 448,256,345 Page 854 of 1502 ;j\,/ I � {\ �v/11 H City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PLANNING DEPARTMENT MEMORANDUM TO: Alina T. Hudak, City Manager FROM: Thomas R. Mooney, AICP Planning Director DATE: June 15, 2022 SUBJECT: Planning Analysis of Proposed Lease of City-Owned Parking Lot 27 (1664 Meridian Avenue). BACKGROUND Section 82-38 of the Code of the City of Miami Beach requires that any proposed sale or lease of City-owned land be analyzed from a planning perspective so that the City Commission and the public are fully apprised of all conditions relating to the proposed sale or lease. The proposed lease applies to a ±59,273 SF (1.36 acres), City-owned parking lot, located at 1664 Meridian Avenue. The proposal is for a 99-year maximum lease term, with a 51-year initial term and two (2) 24-year renewals. The site currently consists of a 151-space parking lot. The parcel is currently zoned GU Government Use District and is located on the southern half of the block bounded by Meridian Avenue on the east, Lincoln Lane North on the South, Jefferson Avenue on the west and 17th Street on the north. The proposed lease is for the development of a 6-story, 159,000 SF building, which includes approximately 80,0000 SF of Class A office, 9,500 SF of retail, and 43 apartment units. The proposal requires voter approval. The following is an analysis based on the criteria delineated in the Code: ANALYSIS 1. Whether or not the proposed use is in keeping with city goals and objectives and conforms to the city comprehensive plan. Partially Consistent—The site is currently designated Public Facility: Governmental Use (PF). A Comprehensive Plan amendment is necessary to allow for the market rate residential uses. The Comprehensive Plan amendment is in progress and there are no objections from the state land planning agency. The proposed use is in keeping with the city goals and objectives to develop class A office space in an effort to transform the economy of the City from one that is overly dependent on tourism. 2. The impact on adjacent property, including the potential positive or negative impacts such as diminution of open space, increased traffic, noise level or Page 855 of 1502 Planning Analysis of Proposed Lease of City-Owned Parking Lot 27(1664 Meridian Avenue). June 15, 2022 Page 2 of 3 enhanced property values, improved development patterns and provision of necessary services. Based on the proposed use of the property, the city shall determine the potential impact of the project on city utilities and other infrastructure needs and the magnitude of costs associated with needed infrastructure improvements. Should it become apparent that further evaluation of traffic impact is needed, the proponent shall be responsible for obtaining a traffic impact analysis from a reputable traffic engineer. Consistent—The developer has provided an analysis that indicates that the proposed development will have a traffic impact. However, the developer will be responsible for the payment of Mobility Fees that can be used to improve the transportation network in order to mitigate impacts. If the project were developed today, the project would be subject to approximately $435,849.20 in Mobility Fees pursuant to the expected program. Additional study regarding the transportation impact will take place as part of the design review process. Significant noise impacts are not expected from the proposed uses. The site is currently a fully paved public parking lot and not used as green or open space. As such there will be no diminution of open space. Additionally, the project would have to undergo a recreation and open space review and mitigate impacts pursuant to the level of service adopted in the City's Comprehensive Plan. The current use of the site has an exceedingly negative impact on the aesthetics of the community. With the development of the site, the design review process would ensure that the new development would improve the development patterns of the community and enhance property values. 3. A determination as to whether or not the proposed use is in keeping with a public purpose and community needs, such as expanding the city's revenue base, creating jobs, creating a significant revenue stream, and improving the community's overall quality of life. Consistent - This proposal is in keeping with a public purpose by creating Class A office space which will bring workers and clients to area businesses. It will also help to transform the City's economy. Additionally, the proposed lease agreements will provide revenue to the City in the form of rent payments and property taxes. Additionally, the project will continue to provide for the public parking that exists on the site today. 4. A determination as to whether or not the development is in keeping with the surrounding neighborhood, will block views or create environmental intrusions, and evaluation of the design and aesthetic considerations of the project. Consistent - The surrounding neighborhood will not be negatively affected and the development will not block views or create environmental intrusions. There are no residential buildings in the vicinity that provide for views of significant features. The properties to the south consist primarily of low scale commercial buildings. To the We ore committed to providing excellent public service and safety to all who live,work, and ploy in our vibrant, tropical,historic community. Page 856 of 1502 Planning Analysis of Proposed Lease of City-Owned Parking Lot 27(1664 Meridian Avenue). June 15, 2022 Page 3 of 3 north, there are office buildings which should not have views negatively impacted. However, design and aesthetic considerations will be considered as part of the design review process for any new development. 5. The impact on adjacent properties, whether or not there is adequate parking, street and infrastructure needs. Consistent — Any new development on the site will have to comply with all requirements of the Land Development Regulations, including parking requirements and concurrency requirements which that ensures that levels of service for infrastructure are met. A recent code amendment will allow for the existing 151 public parking spaces to be provided within the development. 6. Such other issues as the city manager or his authorized designee, who shall be the city's planning director, may deem appropriate in analysis of the proposed disposition. Not applicable - The Planning Department has no other issues it deems appropriate to analyze for this proposal. CONCLUSION The proposed lease agreement is consistent with the Goals, Objectives, and Policies based on the proposals for the property, subject to the approval of the amendment authorizing market rate residential. The lease amendment will generate no negative impacts for the surrounding area. We are committed to providing excellent public service and safety to all who live, work,and play in our vibrant, tropical, historic community Page 857 of 1502 Lincoln District P27 Mixed Use Development Miami Beach, Florida USA July 05, 2022 mmLwom°fta ' '~~~ ---------'---' --'--------------- � | ' | | � '--- - - -- =" ----' — ---1 ~ ' | U8���0UVL�U�����0UUUl�|U8U0|UN| {NUUUUUU�U | - 77 _ � | __-L- nU - | i L --1 | | | 1 �--- _ ] | | | | / /- | s | | ' - - i I. I i I 1 1 1 c I �3 .b I I__..__ 1 N ., azz) I I r.E, • ..,.� a.o� g I I r L.. _ _ V a r;saM®b ooc. --__- I I oa o1 c € - ra I 9 i I I '—--- I X i s ..M..Mwl. . o - V i , l . .. i. 1 ::.,'.:1:,,,,,;;;-'. 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STACKERS r < ,;,, s PARKING 05 ' a -- PARKING 05 c+ ii ' sum 'I PARKING 04 0--LINT < PARKING 04 p " PARKING 03 id _ _ < '� •- PARKING 03 [I' PARKING 02 li FREEBOARD♦5' PARKING 02 1 FREEBOARD.1' I �$ I3.�..ST�" �' PARKING 01 , _ _ ENTRANCE BFE 8.45'NAVD 0y L.0',I -- 1 _ _ __ I "^"t' PARKING 01 ti I� i L01 El+0.00 �y oll PARKING-01 PARKING-01 o� SECTION E-W Page 867 of 1502 ff � �" # f ,X " iti ;,8i r u 4 ..,r"i++� IN� r. ��. �' '.� s . '.9''},��k�sr�'5.; C ' s 1 °'m r r �9'lI4 . ad f 4 .A4 Til r r ^t, r ., � r sr s s "'ai° - PARKING 06 ".... - PARKING08 s am* _- __ - -. s wo - ""'"° " PARKING ." [ : "'•••«� PARKING 05 __ _ — __.. s �� "''""" r . _ PARKING 04 o.a PARKING04 `` °"""' _ _ - _- PARKING 03 ! am "'"'°'` I PARKING 03 I - ----w•-^.I-:. .-T. .- -�-• '. PARKING 02 PARKING 02 t �FREEBOARD+5' FREEBOARD+1' BFE 8.4 'NAVD ' _ ri ji: „.„„_/�SFRtEEFBRFEEEE B45OA 1'A N A'RNDAV VDD SECTION �Bge8of,5o2 SECTION D—D _ld P. 1 _ ad .00 no F010 OM. lo al • r , r r 00•01 0•••:• • '1 r'r , .. ;: .,. "-"". ..,\ - __ _- i g.....m..,,,,,_ , ... _ . . .4, ...." _I SEOoTSON C—C SECTION D—D La r Linoo.n I ane Project Overview SURFACE LOT PTA/ Peebles Oorporation Scott Robins Oompanies Baron Qorporation • P21/: 16G/. Meridian Avenue(I incoln I atery,0132)� • Lot size- approximately 60_000 sf • As-is fee simple appraised value:S3914 O • 99-year lease:51 yr initial. T Iwo(2)2/. yr renewals • 6 stories Cx7 • Height:80 ft • Uses:Glass A Office. Market Rate Residential e'rooms Apartments.Ground I loor Retail. Replacement Parking,and Private Parking for Office,Residential o Parking garage with full replacement of 151 existing public parking spaces o Public parking on lower floors o Parking mitigation during construction O 81.500 sq.ft.Glass A office space O 10.500 sq.ft.ground floor retail to activate 1 incoln I ane O 41 market rate residential units o Ground floor retail to activate Lincoln Lane Worth and street fronts o Public landscaped space o Gonstruc Lion Timeline: • IGO-61 months • Parking IGO- 61 months • Parking available-64 months • Rent-the greater of guaranteed base rent or 5%of © Effective Gross Income(EGI) • Minimum Guaranteed Rent to the Gity: C145144 • Potential with Percentage Pent(EGI):T14514 1 rnanoia. itenoflts • Oily will not provide any funding or financing for project • Oity retains of 100%net revenues for public parking • Annual Rent Growth: o Vears 1-5(month S5) 1.50% o Vears 6-10(month 115)GPI (1.5%up to 2%) O years 11-15(month 1175)GPI (1.5%up to 2.5%) o Vears 16- (month 235)GPI (1.5%up to 3%) • Rent Reset:Vears 51 and VS(base year escalated by higher of 2%or GPI uncapped) • Transaction Pent upon transfer sale by I essee • Lump Sum Payment:CAA at Qonstruction (23 months) • Qonstruetion Rent:C150000 annually • Base Rent:c680000 annually • Approx.4t500k-T600k in annual ad valorem taxes Page 871 of 1502 Lincoln Lane-Timeline of Public Meetings and Information Date Meeting Subject Matter/Action Taken Request for Letters of Interest 2021-029-KB(the "RFLI") Requested preparation of RFLI during discussion of office 1. I 12/11/2019 City Commission* development to attract targeted industries 10/09/2020 City issues RFL! Deadline for receipt of letters of interest: February 11, 2021 _ (extended three times upon request of industry stakeholders) LTC 359-2020: RFLI 2021 029- Informed City Commission of issuance of RFLI and attached 2. 10/13/2020 KB for Class A Office industry reports of increased demand for Class A office space Development LTC 063-2021: Update - RFLI RFLI results (18 letters of interest) and Administration's strategic 3. 02/12/2021 2021-029-KB Class A Office marketing / digital advertising campaign targeting out-of-state Development business industry($8,000 budget) 4. 02/19/2021 Finance & Economic Recommended (4-0)that Administration begin to prepare an RFP Resiliency Committee and the City Commission authorize the RFP 5. 02/24/2021 j City Commission* Discussed RFLI results and 17th Street Garage in RFP scope Request for Proposals 2021-173-KB(the "RFP") 6. 03/17/2021 City Commission* Reso. 2021-31617 authorized preparation of an RFP 7. 04/08/2021 Public Meeting: "Class A Office Interactive webinar to promote RFP and solicit industry input,with Development" 85 (non-City staff/consultant) participants 8. 04/19/2021 LTC 165-2021: Class A Office Provided background and analyzed office market conditions, and Market Conditions attached office market industry reports 9. 05/21/2021 Finance & Economic Expressed support for upcoming RFP issuance during discussion Resiliency Committee of measures to attract business 10. 06/23/2021 City Commission* Approved (7-0) issuance of RFP 2021-173-KB 06/25/2021 City issues RFP Deadline for receipt of proposals: Jan. 12, 2022 (extended three times from August 24, 2021 upon request of potential proposers) 11. 07/14/2021 Pre-Proposal Meeting Publicly noticed conference to respond to proper questions, with 35(non-City staff/consultant) participants LTC 515-2021: Evaluation Update on Evaluation Committee selection, including 12. 12/06/2021 Committee Relative to RFP representation from Lincoln Road BID Board of Directors and 2021-173-KB Palm View Neighborhood Association 02/01/2022 Evaluation Committee Evaluation Committee convenes publicly to score proposals 13. 02/23/2022 City Commission* Reso. 2022-32054 accepted City Manager's recommendation and authorized negotiations with Parties 14. 02/25/2022 Finance& Economic Discussed resident participation in RFP via referendum Resiliency Committee* Lease Negotiations pursuant to RFP 15. 03/30/2022 Finance & Economic Reviewed project information and provided direction Resiliency Committee* 16. 04/08/2022 Land Use& Approved (2-1) Land Use Amendments Sustainability Committee* 17. 04/19/2022 Finance & Economic Reviewed Term Sheets and provided direction Resiliency Committee* 18. 04/26/2022 Planning Board* Approved (7-0) Land Use Amendments 19. 04/29/2022 Finance& Economic Approved Term Sheets and recommended preparation of Ground Resiliency Committee* Leases 20. 05/04/2022 City Commission* Resos. 2022-32163 and 2022-32164 approved Term Sheets; authorized preparation of DAs and Ground Leases 21. 05/24/2022 Planning Board* Approved (5-1)the proposed land uses in both DAs 22. 06/22/2022 City Commission* Approved (5-1) DAs, Ground Leases on First Reading and approved Land Use Amendments on Second Reading Publicly Noticed Meetings: 18 Letters to Commission: 4 Page 872 of 1502 22NE ! NEIGHBORS SUNDAY JULY 3 2022 CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARING AND INTENT TO CONSIDER A DEVELOPMENT AGREEMENT JULY 20, 2022 CITY COMMISSION MEETING On July 20.2022,the City of Miami Beach will howl a Hybrid Commission Meeting.During the Hybrid Commission Meeting.the City Commission ou l be physically present in the Commission Chamber, Miami Beach Chy Hall,1700 Convention Center Drive,3rd Floor.Miami Beach,FL 33139.The public Is encouraged to attend the meetlrg vincally(as prodded below).However,members or the public who wish to attend the meeting or provide public comment in person may appear at the Commission Chamber. To participate or provide comment virtually during the Hybrid Commission Meeting,the public may join the webinar at blaa/2miamibeachllbov.zoom us/./81382857671 or via telephone at.1.301.715.8592 (U.S.)or 888.475.4499(Toe-Free).Webinar ID:81392857671 e.Members of the public wanting to speak virtually on an Item during the'heeling must click the"raise hand'Icon R using the Zoom app or press'9 on the telephone to raise their hand. NOTICE IS HEREBY GIVEN that the following Public Hearing will be beard by the Mayor and City Commissioners al the City of Miami Beach.Florida.or July 20 2022,at 1:32 P.19 or as sour thereafter as the matter Can be heard: 1:32 DM.Second Readlno Public Hearing A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,APPROVING,FOLLOWING SECOND READING/PUBLIC HEARING,A DEVELOPMENT AGREEMENT,AS AUTHORIZED UNDER SECTION"19-4 OF THE CITY CODE,AND SECTIONS 163.3220-163.3243,FLORIDA STATUTES,BETWEEN THE CITY AND 1664 MERIDIAN AVENUE,LLC (THE"DEVELOPER"),WHICH DEVELOPMENT AGREEMENT(A)WAS REVIEWED BY THE PLANNING BOARD AS REQUIRED BY SECTION 142.423;(B)DELINEATES THE TERMS AND CONDITIONS FOR THE DEVELOPMENT ON THE CITY-OWNED SURFACE PARKING LOT P27(CONSISTING OF SEVEN(7)TAX FOLIOS:02-3234-007-0560,02-3234-007-0570,02-3234-007-0630,02-3234-007- 0640.02-3234-007-0650,02-3234-007-0660 AND 0 2423 4-00 7-06 7 0)LOCATED IN MIAMI BEACH,FLORIDA("P27"OR THE"PROPERTY")CONSISTING OF(1)CLASS A OFFICE SPACE,(2) GROUND FLOOR RETAIL,(3)RESIDENTIAL RENTAL APARTMENTS,(4)PUBLIC PARKING TO REPLACE THE EXISTING PUBLIC PARKING SPACES ON P27,AND(S)ADDITIONAL PARKING TO SATISFY OFF-STREET PARKING REQUIREMENTS FOR THE OFFICE AND RESIDENTIAL USES(THE"PROJECT');AND(C)MEMORIALIZES CERTAIN CONDITIONS PRECEDENT FOR THE CITY'S • LEASE OF THE PROPERTY TO THE DEVELOPER FOR THE DEVELOPMENT,DESIGN,FINANCING,CONSTRUCTION,AND OPERATION OF THE PROJECT ITHE'LEASE");SUCH LEASE BEING SUBJECT TO AND CONTINGENT UPON APPROVAL BY THE CITY COMMISSION PURSUANT TO SECTION a2.37(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:AND FURTHER,AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE THE DEVELOPMENT AGREEMENT. PROPERTY ?"e Jeveopmer.1 She cansi sts of: 02-3234-007-0560 02-3234-00/-0640 02-3234-007-0660 City-Owned Su-face Parking 02-3234-007-0570 02-3234-087-0650 02-3234-007-0670 Le!.77 02-3234-007-0630 ZONING DISTRICT The Development Site is located within the GU zoning district The development regulations in the GU district are the average of the requirements contained in the surrounding zoning dsMcls.The Development Site Is surrounded by property zoned CD-3,Commercial High Intensity,and as a result,is subject to the development regulations of the CD-3,Commercial High Intensity zoning district.The maximum F.A.R.for mixed-use developments in the CD-3 district is 2.75. MAXIMUM HEIGHT.On June 22,2022,the City Commission adopted on second reading an increase in height,from 65 feet to a maximum of 100 feet in height,to accommodate private uses that incorporate public parking spaces within the structure that are owned by the City and/or operated by the City in the area bounded by 17'Street on the north,Lincoln Lane on the south,Alton Road on the west,and Washington Avenue on the east.Architectural projections will comply with applicable provisions of the Clty's Land Development Regulations. PERMITTED USES:The current main permitted uses in the City's GU zoning District are government buildings and uses,including but not limited to parking lots and garages,parks and associated parking; schools;performing arts and Guttural facilities;monuments and memorials.The proposed Development Agreement contemplates that the City Commission will approve a mixed-use development consisting of(11 Class A office space.(2)ground floor retail-(31 residential rental apartments,(4)public parking to replace the existing public parking spaces on the properties,and(51 additional parking to satisfy off-street parking requirements for the office and residential uses. The City's 2040 Comprehensive Plan provides that population densities for Public Facilities:Governmental Use(PF)future land use category is equivalent to the average of surrounding districts.The Development Slte Is surrounded by the High Intensity Commercial(CD-3)category,which allows for 150 units per acre.Theretore,the maximum density permitted on the Development Site is 150 units per acre A copy of the proposed Development Agreement is available for public inspection during normal business hours in the Office of the City Clerk,7700 Convention Center Drive.1st Floor,City Haft,Miami Beach, Florida 33139. INTERESTED PARTIES are invited to take part in this meeting or be represented by an agent.The public may submit written comments by sending an email to.GilvClerkeimiamlbeachlLgov by 5:00 p.m. the day before the City Commission meeting.Please identity Agenda Rem Number R7C in the email subject line.Emails received will be forwarded to the Mayor and Commissioners and will be included as a part of the meeting record.This Item Is available for public Inspection during normal business hours In the Office of the City Clerk,1700 Convention Center Drive.1"Floor,City Hall,Miami Beach, Florida 33139.This meeting,or any Item therein.may be continued,and under such circumstances.additional legal notice need not be provided- Pursuant to Section 266.0105,Fla.Stat.,the City hereby advises the public that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing,such person must ensure that a verbatim record of the proceedings is made,which record includes the testimony and evidence upon which the appeal Is to be based.This notice does not constitute consent by the City for the Introduction or admission of otherwise inadmissible or irrelevant evidence,nor does it authorize challenges or appeals not otherwise allowed by law. To request this material In an alternate format,sign language Interpreter(five-day notice required),Information on access for persons with disabilities.and/or any accommodation to review any document or participate in any City-Sponsored proceedings,call 305.604.2489 and select option 6;TN users may call via 711(Florida Relay Service). The City Commission Meeting will be broadcast live on Miami Beach TV(MBTV),viewable on the City's missile at bllpa✓/wiew miamibeachfl aov/aovernmenUmbN2 as well as on Bneazelne Cable channel 660.AT&T U-verse channel 99,Hotwlre Communications channel 395,and ROKU device on PEG.TV channel,and on social media at httas_2/www,tacebook.comidtvotmlamiteaEh. Rafael E.Granada,City r' [�lf�® l CRy of Miami Beach - _ BEACH r 1�.�i 305.673.7411 Ad No.07202022-03 P27 Page 873 of 1502