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Resolution 2023-32558RESOLUTION _NO.; 2023-32558.%- A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING FOR CONSIDERATION AN UNSOLICITED PROPOSAL, PURSUANT TO SECTION 255.065 OF THE FLORIDA STATUTES, FOR THE DEVELOPMENT OF A MIXED -USE PROJECT CONTAINING GROUND FLOOR RETAIL SPACE, CLASS A OFFICE SPACE, AND A PARKING GARAGE, PROPOSED TO BE DEVELOPED AT A CITY - OWNED SURFACE PARKING LOT LOCATED AT 1262 COLLINS AVENUE (P16); AND FURTHER, DELEGATING TO THE CITY MANAGER THE AUTHORITY TO ISSUE A REQUEST FOR PROPOSALS, SEEKING ALTERNATIVE PROPOSALS IN ACCORDANCE WITH FLA. STAT. 255.065, AND REQUESTING THAT THE CITY MANAGER TRANSMIT THE FINAL RFP TO THE CITY COMMISSION VIA A LETTER TO COMMISSION UPON ISSUANCE THEREOF. WHEREAS, on or around October 1, 2021, Location Ventures, LLC ("LV') submitted an unsolicited proposal (the "Unsolicited Proposal") to develop a mixed -use project, including ground floor retail space, office space and a parking garage at the City -owned parking lot located at 1262 Collins Avenue ("Parking Lot P16"); and WHEREAS, at the City Commission meeting on October 13, 2021, Commissioner Ricky Arriola referred a discussion item to the Finance and Economic Resiliency Committee ("FERC") pertaining to the Unsolicited Proposal; and WHEREAS, the item was ultimately discussed at the April 19, 2022 FERC meeting; and WHEREAS, the Administration recommended that if the FERC determined that the development of Parking Lot P16 would be beneficial to the City's economic interests, the formal competitive bidding process set forth in Section 82-39(a) of the City Code be followed; and WHEREAS, at the April 19, 2022 meeting, the FERC directed LV to: (i) explore whether neighboring businesses supported the Project, (ii) improve the economic terms for the City, and (iii) submit optional concepts to compare multi -level, offices to the initial proposal consisting of a single floor of office space; and WHEREAS, as a result of the direction provided by FERC, LV submitted to the Administration a revised proposal; and WHEREAS, at its November 14, 2022, the FERC considered the revised proposal and referred the item with a recommendation that the Administration publish notice, as required pursuant to Section 255.065 of the Florida Statutes, requesting other proposals for a period of up to sixty (60) days; and WHEREAS, LV's proposal requested approval of a height increase to 90 feet which would require an amendment to the Land Development Regulations ("LDRs"); and WHEREAS, there are four (4) municipal lots/garages in or near the Art Deco Cultural District (the "ADCD"): the G1 garage located at 200 7th Street (i.e., 7th Street and Collins Avenue), with 646 spaces, a garage on 12th Street and Washington Avenue (G2), a garage on 13th Street and Collins Avenue (G3) and the Anchor Garage, located at 16th Street between Washington Avenue and Collins Avenue; and WHEREAS, up to 70% of spaces at the Anchor Garage are to be available, upon request from the St. Moritz Hotel Corporation (operator of The Loews and Royal'Palm Hotels), for use by their valet operator, significantly reducing the number of parking spaces available to the public at the Anchor Garage; and WHEREAS, on July 6, 2022, Ballet Valet Parking Company, LTD ("BV"), the developer that constructed and developed the G1 garage (located at 200 7th Street, a/k/a 7th Street and Collins Avenue), communicated via email to the City Manager its interest to accelerate its option to purchase the G1 garage pursuant to a. purchase option granted by the City to BV in that certain Acquisition, Construction and Development Agreement dated June 6, 1994 between the City, BV and McCarthy Brothers Company; and WHEREAS, if the City declines BV's request to accelerate its purchase option, BV will nevertheless have the right to exercise the option in [February] 2026; and WHEREAS, once BV exercises its right to purchase the G1 garage and converts it into a private parking facility or redevelops the property, the number of municipal spaces in the South Beach area will be reduced by 646 spaces, leaving residents and visitors with limited options and requiring them to park in higher -priced, private parking lots and garages; and WHEREAS, the Administration has recommended that the current and future parking needs in the area be taken into account in making any decision relating to the Unsolicited Proposal, any new proposal by LV and/or any new proposals received pursuant to any competitive bidding process; and WHEREAS, the Master Parking Resolution (Resolution No. 2010-27491) imposes certain restrictions on the sale or leasing of assets that form part of the Parking System, including Parking Lot P16; and WHEREAS, if the Commission wishes to lease Parking Lot P16 for development, an analysis would be required to determine whether this could be accomplished in compliance with the Master Parking Resolution; and WHEREAS, consideration would also. need to be given to the impact of a lease of Parking Lot P16 on the current Parking Revenue Bond Covenant; and WHEREAS, the Commission desires to initiate a competitive procurement process, in accordance with Section 255.065, Florida Statutes, providing other parties a period of ninety (90) days to submit proposals for a project on the P16 Parking Lot that (a) must include replacement public parking of not less fifty (50) spaces and (b) may include workforce housing, Class A office space and/or retail space; and WHEREAS, the Request for Proposals ("RFP") should indicate that the City Commission will consider amendments to the LDRs that would be necessary for any project presented by a proposer, provided that approval of any such amendments would be in the Commissions sole and absolute discretion; and WHEREAS, the RFP must require proposers to specify the parking rates they will charge for public parking; and WHEREAS, each proposer may submit a single proposal; and 2 WHEREAS, LV may submit a revised or entirely new, proposal pursuant to the RFP, provided, in such case, LV's original proposal would be deemed to have been withdrawn and not further considered; and WHEREAS, the RFP process to be implemented is not intended to bind the City to proceed with any project on Parking Lot P16 and is only a means for receiving competitive proposals for comparative purposes; and WHEREAS, the Commission desires to delegate authority to the City Manager to approve the RFP prior to issuance, provided that the City Manager shall issue a Letter to Commission to provide a status reports upon issuance of the RFP. 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 accept for consideration an unsolicited proposal, pursuant to Section 255.065 of the Florida Statutes, for the development of a mixed -use project containing ground floor retail space, class A office space, and a parking garage, proposed to be developed at a City -owned surface parking lot located at 1262 Collins Avenue (P16); and further, delegate to the City Manager the authority to issue a Request for Proposals (RFP), seeking alternative proposals in accordance with Fla. Stat. 255.065, and request that the City Manager transmit the final RFP to the City Commission via a Letter to Commission upon issuance thereof. PASSED and ADOPTED this day of �e�rr�Gr y , 2023. ATTEST: 7V LOZ3 Rafael E. ranado, City CI k Dan Gelber, Mayor mr 3 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attorney Date