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Resolution 2024-32977 RESOLUTION NO. 2024-32977 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, TO AWARD REQUEST FOR PROPOSALS NO. 2023-115-KB, FOR THE REDEVELOPMENT OF THE CITY-OWNED PROPERTY LOCATED AT 1940 PARK AVENUE (THE BARCLAY) AND AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS FOR A DEVELOPMENT AND GROUND LEASE AGREEMENT WITH 1940 BARCLAY PARTNERS, LLC, THE SOLE PROPOSER, WITH THE FINAL MATERIAL TERMS FOR THE PROJECT SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION; AND FURTHER, REFERRING THE PROPOSED PROJECT AND ANY ACCOMPANYING AMENDMENTS TO THE CITY'S LAND DEVELOPMENT REGULATIONS TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, THE LAND USE AND SUSTAINABILITY COMMITTEE, AND THE PLANNING BOARD FOR REVIEW, IN ACCORDANCE WITH THE REQUIREMENTS OF THE CITY CODE. WHEREAS, on April 6, 2022, the Mayor and City Commission approved the recommendation of the Finance and Economic Resiliency Committee (the "FERC") to direct the Administration to develop a Request for Proposals (RFP) for the redevelopment of the Property); and WHEREAS, on November 16, 2022, the Mayor and City Commission authorized the issuance of RFP 2023-115-KB for the redevelopment of the City-Owned Property Located at 1940 Park Avenue (The Barclay) and the RFP was issued on December 16, 2022; and WHEREAS, the City received a sole proposal from The Barclay Partners LLC, now 1940 Barclay Partners, LLC ("Legacy" or the "Developer"), a joint venture between Urban American and Legacy Real Estate Development LLC.; and WHEREAS, on March 21, 2023, the Evaluation Committee appointed by the City Manager convened to consider the proposals received, the Committee was comprised of: Ozzie Dominguez, Asset Management Division Director, Facilities and Fleet Management Department; Ariel Guitian, Senior Capital Projects Coordinator, Capital Improvement Projects Office; Marcela Rubio, Assistant Director, Office of Housing and Community Services Department; and Heather Shaw, Assistant Director, Economic Development Department; and WHEREAS, the Committee was provided an overview of the project and information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law and was also provided general information on the scope of services and a copy of each proposal and was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP; and WHEREAS, no ranking is available as the proposal from Legacy was the sole proposal; however, the Evaluation Committee scored the proposal highly with an average score of 87 out of 100 available points based on the evaluation criteria in the RFP; and WHEREAS, on September 13, 2023, the City Commission unanimously directed separate, simultaneous discussions with RFP proposer Legacy, and the Housing Authority, who had not submitted a proposal pursuant to the RFP; and WHEREAS, while still subject to the Cone of Silence, the Administration held discussions with Legacy, as directed by the City Commission, on nine (9) occasions between. the September 13, 2023 City Commission and February 22, 2024 FERC meetings; and WHEREAS, following Commission direction provided at the September 13, 2023 City Commission meeting, the Administration met with Housing Authority staff on two (2) occasions before the Housing Authority authorized a potential partnership with Legacy pursuant to HACMB Reso. No. 2024-01; and WHEREAS, at the December 13, 2023 City Commission meeting, Vice Mayor Rosen Gonzalez sponsored a resolution to terminate the RFP and refer an item to FERC to discuss identification of funds including possible use of Arts and Culture General Obligation (G.O.); and WHEREAS, On January 30, 2024, the Housing Authority Board of Commissioners passed HACMB Resolution No. 2024-01, approving negotiations with Legacy to partner in developing the Property; and WHEREAS, at the January 31, 2024 City Commission meeting, item R7F, a proposed resolution to terminate the RFP and commence the process to identify funding for City renovation of the Property, was withdrawn by its sponsor; however, the City Commission adjourned the January 31, 2024 meeting before considering companion item R9 M, an update by the Administration on the status of RFP discussions; and WHEREAS, on February 23, 2024, pursuant to the City Commission's referral on September 13, 2023, the FERC discussed Legacy's Proposal dated February 13, 2024; and WHEREAS, during its February 23, 2024 meeting, the FERC requested that the Developer explore refining certain proposal terms and return to the March 2024 FERC meeting with multiple development scenarios reflecting how compensation to the City would be affected by adjustments to the tenant affordability mix, among other variables impacting Legacy's proposal; and WHEREAS, at the February 23, 2024 FERC meeting, Commissioner Rosen Gonzalez withdrew her companion referral item C4 E, to discuss the conveyance of the Property to the Housing Authority; and WHEREAS, the FERC unanimously passed a motion for the remaining item (originating on September 13, 2023 as R9 M) to return the following month when the Developer could present multiple development .scenarios and financial terms to assist the Committee in discussion of a recommended redevelopment strategy without engaging in further discussions with staff; and WHEREAS, following the February 23, 2024 FERC meeting, the Developer modified proposal terms and provided additional potential development scenarios in the Updated Proposal dated March 13, 2024; and • WHEREAS, on March 24, 2024, the FERC reviewed five (5) development options from the Developer which differed in approach towards historic preservation of the existing structure, proposed financial benefits to the City, affordability mix of the residential tenants, and architectural design; and WHEREAS, the FERC recommended at its March 22, 2024 meeting that the City Commission award RFP 2023-115-KB to 1940 Barclay Partners, LLC, based on the Proposal dated March 13, 2024, Option 2, provided that the financial proposal includes a minimum Upfront Payment of $6 million; and further, that ,the City Commission authorize the Administration to enter into negotiations with 1940 Barclay Partners, LLC, with the final material terms of the Project to be subject to the prior approval of the Mayor and City Commission. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the Finance and Economic Resiliency Committee, to award Request for Proposals No. 2023-115-KB, for the Redevelopment of the City-owned property located at 1940 Park Avenue (the Barclay) and authorize the Administration to enter into negotiations for a development and ground lease agreement with 1940 Barclay Partners, LLC, the sole proposer; require the final material terms of the project be subject to the prior approval of the Mayor and City Commission; and further, refer the proposed project and any accompanying proposed amendments to the City's land development regulations to the Finance and Economic Resiliency Committee, the Land Use and Sustainability Committee, and the Planning Board for review in accordance with the requirements of the City Code. PASSED AND ADOPTED this - day of . /1Pra 2024. ATTEST: I APR 0 a 2024 'Steven Meiner, Mayor Rafael ' Granado, City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION . City Attorney Date Competitive Bid Reports-C2 C MIAMI BEAC COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: April 3, 2024 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, PURSUANT TO REQUEST FOR PROPOSALS NO. 2023-115-KB, FOR THE REDEVELOPMENT OF THE CITY-OWNED PROPERTY LOCATED AT 1940 PARK AVENUE (THE BARCLAY)AND AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS FOR A DEVELOPMENT AND GROUND LEASE AGREEMENT WITH 1940 Barclay Partners, LLC, the sole proposer, WITH THE FINAL MATERIAL TERMS FOR THE PROJECT SUBJECT TO PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION; AND FURTHER, REFERRING THE PROPOSED PROJECT AND ANY ACCOMPANYING AMENDMENTS TO THE CITY'S LAND DEVELOPMENT REGULATIONS TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, THE LAND USE AND SUSTAINABILITY COMMITTEE, AND THE PLANNING BOARD FOR REVIEW, IN ACCORDANCE WITH THE REQUIREMENTS OF THE CITY CODE. RECOMMENDATION Refer to the attached Commission Memorandum. BACKGROUND/HISTORY Refer to the attached Commission Memorandum. ANALYSIS Refer to the attached Commission Memorandum. SUPPORTING SURVEY DATA Refer to the attached Commission Memorandum. FINANCIAL INFORMATION Refer to the attached Commission Memorandum. Amount(s)/Account(s): Page 41 of 1445 Refer to the attached Commission Memorandum. CONCLUSION Refer to the attached Commission Memorandum. 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 Legislative Tracking Economic Development/Procurement ATTACHMENTS: Description ❑ Commission Memorandum-Award RFP-2023-115-KB cThe Barclay) ❑ Attachment A- Evaluation Committee Scoring and Ranking D Attachment B - Key Terms ❑ Attachment C -Term Sheet Option 2 Page 42 of 1445 MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Steven Meiner and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: April 3, 2024 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE,TO AWARD REQUEST FOR PROPOSALS NO. 2023-115-KB, FOR THE REDEVELOPMENT OF THE CITY-OWNED PROPERTY LOCATED AT 1940 PARK AVENUE (THE BARCLAY) AND AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS FOR A DEVELOPMENT AND GROUND LEASE AGREEMENT WITH 1940 BARCLAY PARTNERS, LLC, THE SOLE PROPOSER, WITH THE FINAL MATERIAL TERMS FOR THE PROJECT SUBJECT TO PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION; AND FURTHER, REFERRING THE PROPOSED PROJECT AND ANY ACCOMPANYING AMENDMENTS TO THE CITY'S LAND DEVELOPMENT REGULATIONS TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, THE LAND USE AND SUSTAINABILITY COMMITTEE, AND THE PLANNING BOARD FOR REVIEW, IN ACCORDANCE WITH THE REQUIREMENTS OF THE CITY CODE. RECOMMENDATION It is recommended that the Mayor and City Commission approve the Resolution awarding Request for Proposal 2023-115-KB and authorizing the Administration to enter into negotiations with 1940 Barclay Partners LLC, the sole proposer. The final agreement requires prior approval of the Mayor and City Commission. The solicitation is currently under the cone of silence. BACKGROUND/HISTORY The Barclay Plaza property, located at 1940 Park Avenue (the"Property"), is distinguished by its architectural, historic, and geographic attributes.Architectural firm Kiehnel & Elliott, the architects for the Coconut Grove Playhouse and the Shorecrest Hotel, 1535 Collins Avenue, designed the Barclay for transient use. Constructed in 1935, the three-story, L-shaped building is oriented with a main entrance on Park Avenue. Designed with a terrazzo lobby floor and façade detail that is representative of traditional Art Deco design, the Property is a contributing structure in the Museum Historic District and Miami Beach Architectural District. Page 43 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 • Page2of15 A prime geographic location in the Collins Park neighborhood, the Property is immediately _ adjacent to another City-owned-residential property, the London House Apartments, currently providing 24 affordable housing units and operated and managed by the Office of Housing and Community Services. Abutting Washington Avenue and situated directly across from the Miami Beach Convention Center, the Property is within walking distance of the Collins Park Cultural Arts District, Lincoln Road, and the beachfront. Per City Code, real property owned by the City automatically assumes GU (Government Use) zoning. The Land Development Regulations (LDRs)of the City Code provide that zoning for GU properties, i.e., setbacks, floor area ratio (FAR), signs, parking, etc., shall be the average of the requirements contained in the surrounding zoning districts', which, in this case, are RM-2 (Residential Multifamily Medium Intensity)and CCC(Convention Center District).As exists today, the approximately 27,505 sf, three (3)-story, 38-foot-high building once provided 66 efficiency units,each with a kitchen and bathroom.The site is well below its maximum development capacity with an existing FAR of 0.9 as compared with the permitted FAR of 2.37 where GU zoning would allow for more than double the existing floor area and up to 75 feet in height (plus an additional three (3)feet as may be approved by the Historic Preservation Board (HPB)). Any changes and improvements to the building, including, but not limited to, exterior modifications, alterations to public interior spaces such as the lobby, and attached or detached additions, will require a Certificate of Appropriateness from the City's Historic Preservation Board. A feasibility study prepared by MC Harry Associates in August 2021 stated that many components of the existing building envelope and all major building systems required replacement to extend the building's useful service life. Property History The Property operated as the bustling Barclay Plaza Hotel from 1935 to 1942, when the United States Army Air Forces Training Command took control of the commercial property to house soldiers training in Miami Beach. The Property reverted to hotel use following World War II, until 1957, when it was converted to apartment use. The Property continued to operate as residential apartments until it was no longer suitable for tenants and later acquired vacant by the City in 2015. A. MBCDC Ownership (2007—2015) Within the City Center/Historic Convention Village (City Center) Redevelopment and Revitalization Area Plan, adopted by the City Commission and Miami Beach Redevelopment Agency (the RDA) on February 12, 1993, a primary objective for promoting redevelopment is the renovation and preservation of historically designated structures. On April 23, 2007, the City's sole community housing development organization (or CHDO), the not-for-profit Miami Beach Community Development Corporation (MBCDC), obtained title to the Barclay Plaza Apartments property. Consistent with the redevelopment activities outlined in the City Center RDA Redevelopment Plan, and specifically authorized by RDA Resolution Nos. 540- 2007 and 545-2007, property acquisition funds totaling$13.7 million were authorized to be loaned (as a forgivable loan)to the MBCDC by the RDA for the purchase and rehabilitation of the Barclay and the adjacent Allen and London House apartments. With respect to the Barclay, the principal 1 Resiliency Code Section 7.2.16 Page 44 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB A0l3, 2024 Page 3 of 15 amount of the Loan Agreement between the RDA and MBCDC, using the Barclay as collateral, was $5,692,400.2_As a stipulation of.the forgivable loan; MBCDC; via a recorded restrictive covenant, was required to maintain the property as affordable housing for a thirty-year period, which covenant may be released by the City. The sale price was consistent with a July 2005 appraisal, attached to RDA Resolution No. 545-2007,which estimated the property's"as-is"value at $5,124,545. In addition to funding property acquisition costs, the City awarded U.S. Department of Housing and Urban Development (HUD)funds to the MBCDC, the City's largest HUD-funded beneficiary at the time, to renovate the Property, including upgrades necessary for the 40-Year Building Recertification. Based on engineering inspection reports obtained by MBCDC, concrete rebar spalling was observed, and the deteriorated plumbing and electrical systems required replacement for code compliance. The July 2005 property appraisal described the Barclay building as in "Fair-Poor" condition. City/MBCDC Funding Agreements for the Barclay_ , Amount Agreement Parties RDA and MBCDC: $5,692,400 Loan Agreement&Promissory Note(with RDA) The Barclay,LLC $ 500,000 Home Investment Partnership Program (HOME) Program City and MBCDC Agreement,secured by Mortgage and Security Agreement $ 75,018 Community Development Block Grant(CDBG)Agreement City and MBCDC $6,267,418 TOTAL Source: Release Agreement between the City and MBCDC:The Barclay LLC,dated January 30,2015 B. Property Acquisition by the City of Miami Beach (2015) Under MBCDC ownership, certain operational and compliance lapses jeopardized MBCDC's affordable housing portfolio and raised concerns regarding MBCDC's operational capacity, including at the Barclay, where the City's Building Department expressed concern over ongoing violations that threatened the displacement of tenants. On September 17, 2014, via Resolution No. 2014-28756, the City Commission authorized the City Manager to acquire five (5)affordable housing apartment buildings (Allen, Barclay, Lottie, Madeleine Village, and Neptune) from MBCDC3, to ensure the well-being of tenants housed by MBCDC and to secure the City's investment in these assets. MBCDC voluntarily surrendered the five(5)properties to the City,with the City responsible for closing costs (approximately $79,530 for the Barclay). Pursuant to a release agreement between the City and MBCDC, in exchange for five (5) properties, the City (and RDA) released the MBCDC of any obligations and penalties related to the loan agreement 2 The Miami-Dade County Property Appraiser reflects the purchase price of the Barclay by MBCDC in 2007 as$5,668,000. 3 The City did not ultimately acquire the Allen Apartments. Page 45 of 1445 Commission Memo—The Barclay, RFP 2023-115-KB April 3, 2024 Page 4 of 15 and entitlement funds associated with maintaining and operating the property as provided by HUD . via the City. - - - - Using $113,105 of uncommitted Community Development Block Grant (CDBG) funds toward closing costs associated with acquisition of the Allen Apartments and Barclay Plaza Apartments, the City recorded a declaration of restrictive covenants against the Property, requiring its use as an affordable rental property during a fifteen (15) year affordability period commencing from January 30, 2015 (i.e., the date of acquisition by the City). This restrictive covenant exists today in Miami-Dade County Official Records, but no requirement, from HUD or otherwise, will prevent the City from rescinding it, as may be required, prior to expiration of the covenant in 2030. As a condition to City acquisition of the Barclay on January 30, 2015, all operational agreements (management, leasing, and service contracts) and tenant leases were terminated, and the City assumed responsibility for relocating the Barclay's existing residential tenants. According to closing documents, at the time of the City's acquisition of title, the City assumed responsibility for twelve (12)open code and building violations attached to the Property, with outstanding liens and assessments totaling $197,645. Due to the condition of the Property, these violations remain unresolved today, including Miami-Dade County Unsafe Structures Panel and Special Magistrate violations for failure to comply with the required recertification of a 40-year-old building and for operating as an apartment without a certificate of occupancy (CO) and certificate of use (CU). The Property had fallen into disrepair, became non-compliant with 40-year recertification requirements, and was declared unfit for residential tenancy before the City acquired the Property in 2015. On February 2, 2015, immediately after City acquisition, the Barclay was the victim of arson and criminal mischief resulting in extensive damage to the building's lobby and electrical system. Following the damage, the Property's estimated repair and renovation costs were approximately $6,000,000 and the City's then-existing and anticipated affordable housing funds were insufficient to make the necessary repairs to rehabilitate the property and maintain it as affordable housing within HUD's required timeframe controlling the use of HUD funds.As a result, the use of HUD funds for the Barclay would not adequately meet HUD program objectives or provide its intended benefits. In 2016, HUD's Office of Inspector General prepared an independent audit report of the City's HOME Investment Partnership(HOME)program,which resulted in the recapture and reallocation of funds in the amount of $300,278 from the Barclay Plaza to the London House Apartments project via Resolution No. 2015-29080. C. Fiscal Year(FY) 2018 Request for Proposal (RFP 2018-021-KB) On October 22, 2014, via Resolution No. 2014-28794, the City Commission accepted the recommendation of the Neighborhoods/Community Affairs Committee (NCAC) to identify a property for development as workforce housing. At its March 20, 2015 meeting, the NCAC unanimously endorsed the Property, contingent upon it being free of HUD funding and/or use restrictions, as a potential site for workforce housing. On May 6, 2015, via Resolution No. 2015-29017, the City Commission accepted the NCAC recommendation to issue a RFP to identify a public-private partnership(P3)for workforce housing • Page 46 of 1445 ` Commission Memo—The Barclay, RFP 2023-115-KB April 3, 2024 Page 5of15 redevelopment of the Barclay, serving tenants earning between 120% and 140% Area Median _ Income (AMI) and employed in the public safety,education, and municipal sectors. On May 11, 2016, the City Commission approved issuing Request for Qualifications (RFQ) No. 2016-097-KB for Consulting Services for Public-Private Partnerships (P3) for Workforce/ Affordable Housing Projects, which RFQ cited the Barclay first among projects within a scope of engagement. On September 14, 2016, via Resolution No. 2016-29547, the City Commission authorized an agreement for P3 consulting services with the RFQ's top-ranked proposer, the Concourse Group. On January 25, 2017, at its Workforce/Affordable Housing Workshop, the City Commission offered direction for a Barclay RFP,to coincide with the Concourse Group's analysis of the Barclay site in anticipation of the RFP process. On July 27, 2017, via Resolution No. 2017-29925, the City Commission accepted recommendations made by the Finance and Citywide Projects Committee (FCWPC) on March 31, 2017 and June 16, 2017 regarding certain parameters for the Barclay P3 RFP. 1. Projected rents at 30% of targeted AMI ranges and adjusted for unit size. 2. Units with minimum onsite amenities (such as laundry facilities), with the RFP providing survey data to aid developers in adequately gauging tenants' needs. (The Resolution attached neighborhood analysis compiled by the Concourse Group, to be included in the RFP issuance.) 3. Prospective P3 partners must demonstrate sufficient experience with projects of comparable size and scope, and demonstrate financial capacity to fully finance the project. 4. Project must include rehabilitation of existing building to ensure historic preservation, and may include the construction of an accessory building on the existing parking lot to maximize site development. On October 18, 2017, the City Commission authorized the City Administration to issue the RFP and provide notice to the City Commission via Letter to Commission (LTC).Accordingly, LTC 566- 2017, announced the issuance of RFP 2018-021-KB Barclay Plaza Apartments Lease, dated November 17, 2017, and summarized the RFP scope to include: 1. No public funding or public financing for the Project. 2. Developer solely responsible for all costs and expenses associated with the development, design, construction, equipping, and installation of all FF&E and other improvements. Developer responsible for subsequent operation or use, and all alterations, repairs, or replacements thereof. 3. Developer must repay$485,832.22 to HUD for HUD funds previously invested in the property. Subsequently, LTC 367-2018, dated June 28, 2018, reported that, despite 91 prospective bidders accessing the advertised solicitation, the City received one (1) response to the RFP, which proposal was deemed non-responsive. D. Fiscal Year(FY) 2019 Request for Proposal (RFP 2019-098-KB) On January 16,2019, the Mayor and City Commission approved the issuance of RFP 2019-098- KB for the Development of the Barclay Workforce Housing Project, and the City received three (3) responses. On October 16, 2019, Resolution No. 2019-31020 authorized negotiations for a Development and Ground Lease Agreement with top-ranked proposer Atlantic Pacific Communities, LLC (Atlantic Pacific), with the final material terms for the project subject to prior approval of the City Commission.Atlantic Pacific proposed multiple development scenarios, each requiring a combination of funding sources including a financial contribution from the City. The Page 47 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 6 of 15 City commenced the negotiation process with Atlantic Pacific in early 2020. With onset of the COVID-19 pandemic soon thereafter, the City prioritized urgent issues with a focus on maintaining fiscal stability and public safety. On March 17, 2021, during an update discussion about the Property, the Finance and Economic Resiliency Committee (FERC) recommended exploring all available options for its future use, including site analysis with a pending feasibility study and an appraisal of the Property's real estate value for potential sale on the market. The City has since obtained an initial and updated property appraisal prepared by Cushman &Wakefield in 2021 and 2022. The 2022 appraisal reported an as-is, fee simple value of$9.1 million. E. Current Maintenance and Public Safety Services On December 12, 2014, one month prior to the — City's acquisition of the Property, the Building Official issued an emergency demolition order I - directing that the Property was an unsafe + • • structure and should be demolished i ' immediately. As the Property's residential ■ A ' tenants were vacated and a negotiated ' 1-) t • settlement provided that the City would take title and rehabilitate the Property, the +, r ' - ' a demolition order for the historic property was .` not enforced, with plans for structural i ) preservation. A Since the date the City acquired the asset, it was anticipated that restoration of the Barclay would be extensive, due to the building being poorly maintained over the years prior to City ownership and noncompliance with the 40-year recertification. This was further exacerbated by the fire within its historic lobby shortly after acquisition by the City. Over the years, trespassing vagrants have vandalized or destroyed electrical wiring, windows, and access points. Notwithstanding efforts to plan for redevelopment of the site, the City has continued to ensure proper and adequate funding for ongoing maintenance and loss-prevention initiatives including, but not limited to, fencing of the site, boarding-up of access points, debris removal, etc. Though the City had already implemented certain strategies, on May 17, 2023, the Miami-Dade County Unsafe Structures Board ratified a Compliance Agreement stipulating that the City shall secure the property, shutter the building, and maintain the tidiness of the grounds, with quarterly updates to the Special Magistrate, until such redevelopment plans bring the property into compliance. To maintain and secure the site on an ongoing basis, City records show that, in FY 2023, the City expended approximately $14,050 on insurance and landscaping services, among others, and $19,002 for internal maintenance and repair services by the Facilities and Fleet Management Department. The Miami Beach Police Department (MBPD) has implemented regular monitoring of the site and the City has also recently upgraded the perimeter fence to enhance aesthetics. Page 48 of 1445 Commission Memo— The Barclay. RFP 2023-115-KB April 3. 2024 Page 7 of 15 F. Fiscal Year (FY) 2023 Request for Proposal (RFP) 2023-115-KB On April 6, 2022, the Mayor and City Commission approved the recommendation of the Finance and Economic Resiliency Committee to direct the Administration to develop a Request for Proposals (RFP) for the redevelopment of the Property).The purpose of the RFP was to engage a development partner with proven experience in developing similar projects and the financial and professional qualifications to deliver a high-quality, economically feasible project Through the RFP, the City sought proposals from parties interested in entering into a public- private development agreement and ground lease agreement to design, build, operate, and maintain the development. Developments could include residential apartments or other zoning- appropriate uses, including but not limited to office (e.g., general office space, tech hub), school campuses, etc. The City acknowledged that some of the proposed uses may require amendments to the LDRs and noted that affordable/workforce housing could be deemed a public benefit. Further, the RFP noted that the City would consider a designation of a number of units as workforce housing as public benefit and may consider other conditional uses, subject to approval by the City's boards and the Mayor and City Commission. On November 16, 2022, the City Commission authorized issuance of RFP 2023-115-KB (the "RFP"). On December 16, 2022, the RFP was issued. A voluntary pre-proposal conference to provide information to proposers submitting a response was held on January 5, 2023. Two (2) addenda were issued, and 107 prospective bidders accessed the advertised solicitation. RFP responses were due and received on February 23, 2023. The City received a sole proposal from The Barclay Partners LLC, now 1940 Barclay Partners, LLC ("Legacy" or the "Developer"), a joint venture between Urban American and Legacy Real Estate Development LLC. Legacy is a nationwide workforce and affordable housing development company. Legacy is led by CEO Jerrod Delaine and Chairman Donahue Peebles III and is focused on improving communities by leveraging their access to capital. Urban American is a privately held real estate investment management company that currently owns 5,000 units across the U.S. Urban America has deployed over $1 billion of equity from financial institutions, pension funds, foundations, endowments, and family offices. The proposed development team includes a collection of firms and individuals. Architecture would be managed by Stuart Anson Architecture, Brooks& Scarpa. and March Architects. The proposed engineering team considers Feller Engineering (MEP), Green Coastal Engineering (Structural), Dynamic Engineering (Geotechnical), and Spinnaker Group (Environmental). The proposed team also has E.L. Waters and Company handling the planning and permitting process. The team's General Contractor is Journey Construction and OHLA Group Construction. The proposal cited the leasing and marketing team as the firm of Eklund Gomes Team of Douglas Elliman. On March 21, 2023, the City Manager appointed the Evaluation Committee as shared via LTC # 143-2023. The Evaluation Committee convened on April 19, 2023, to consider the proposal received. The Committee was comprised of Ozzie Dominguez, Asset Management Division Director, Facilities and Fleet Management Department; Ariel Guitan, Senior Capital Projects Page 49 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 8 of 15 Coordinator, Office of Capital Improvement Projects; Marcela Rubio, Assistant Director, Office of Housing and Community Services; and Heather Shaw, Assistant Director. Economic Development Department. The Evaluation Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance, and the Government Sunshine Law. The Evaluation Committee was also provided with general information on the scope of services and a copy of each proposal. The Evaluation Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The results of the evaluation process is included in Attachment A. No ranking is available as the proposal from Legacy was the sole proposal. However, the Evaluation Committee scored the proposal highly with an average score of 87 out of 100 available points based on the evaluation criteria in the RFP. The RFP submittal included three (3) options with noteworthy design concepts for the site that retain and renovate the existing building. The designs incorporate resiliency measures to account for sea level rise. The team has demonstrated its ability to complement the architectural significance of the neighborhood. Some of the public benefits offered by the team included affordable and workforce housing, financial benefits including generation of tax revenue, enhancing public safety, and adding to the cultural vibrancy of the area. Additionally, Legacy also plans to contribute to the cultural vibrancy of the Miami Beach community by activating the street with new retail options, public art, and community amenities; the project will create a more vibrant and attractive neighborhood for both residents and visitors. G. September 13, 2023 City Commission Meeting On September 13, 2023, the City Commission unanimously directed separate, simultaneous discussions with RFP proposer Legacy, and the Housing Authority, who had not submitted a proposal pursuant to the RFP. The City Commission requested that the Administration determine which entity could provide the City with the most affordable and/or workforce housing units (not microunits) and which provides the City with the best economic benefits. The City Commission also referred an item to the FERC to review a proposal from each entity as well as a referral to the Affordable Housing Advisory Committee (AHAC). Still subject to the Cone of Silence, the Administration held discussions with Legacy, as directed by the City Commission, on nine (9) occasions between the September 13, 2023 City Commission and February 22, 2024 FERC meetings. H. City Development Scenario vs. P3 Approach The P3 transaction approach can be attractive because it enables the City to transfer risk and responsibility to private sector partners during some or all key stages of development: design/construction (project concept planning. delivery schedule, and construction management). financing (allocation of resources. funding financial close, asset ownership structure), and the operational stage (obligations for asset management, programming, and maintenance). Without a P3 partner to develop and lease the Property, the City will have total responsibility to finance, construct, and operate the facility. Nonetheless, there are advantages and disadvantages to retaining complete control over how projects are planned, developed, operated and maintained. One advantage associated with a City-developed project is continuous control of the land. Under a 99-year ground lease model, as Page 50 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 9 of 15 contemplated in the RFP Proposal and Updated Proposal dated March 13, 2023 (Updated Proposal), although the Ground Lease would restrict a portion of the property for use as workforce and affordable housing (with compliance verified annually by the City), the City would not have operational control of the property for 99 years. This extensive time period would limit the City's ability to modify activities and uses at the site, or potentially sell the Property at its discretion. Furthermore, adding and maintaining occupied residential buildings within the City's portfolio would promote a holistic approach to delivering housing services and encourage affordable and workforce units as outlined in the City's 2040 Comprehensive Plan and 2019 Strategic Plan. The City is equipped with the knowledge base, infrastructure and exposure to renovating, managing, operating and maintaining affordable housing assets through the Offices of Capital Improvement Projects and Housing and Community Services. As such, the City does not necessarily need to outsource development, operations and facility management for the Barclay. However, when comparing a P3 to a development scenario in which the City controls project construction and subsequent facility operations and management, the City could benefit from private sector organizational efficiencies, as the City is often constrained by procurement requirements and other processes, the impact of compliance with laws regulating government function, funding priorities and limitations, and the operational capacity of City staff. As a result, a project built and operated solely by the City could potentially take longer to develop and possibly be more expensive to build, with a substantially greater reliance on taxpayer funding. The City's former P3 consultant, the Concourse Group, recommended the City leverage the private sector's comparative advantages to deliver the same project result in less time and with less cost to taxpayers. For the foregoing reasons, the City's three (3) procurements over the past five (5) years sought public-private partnership opportunities for Barclay redevelopment. I. Housing Authority Participation Following Commission direction provided at the September 13, 2023 City Commission meeting, the Administration met with Housing Authority staff on two (2) occasions before the Housing Authority authorized a potential partnership with Legacy pursuant to HACMB Reso. No. 2024-01. Both the Housing Authority and Legacy were provided equal opportunities by City staff to conduct discussions and exchange correspondence. Although it was the direction of the City Commission to engage in discussions with the Housing Authority and allow the submittal of a development proposal or terms, the Housing Authority did not provide the Administration with any proposal terms, project concept or detailed analysis prior to announcing its intention to partner with Legacy. At the December 13, 2023 City Commission meeting, Vice Mayor Rosen Gonzalez sponsored a resolution to terminate the RFP and refer an item to FERC to discuss identification of funds including possible use of Arts and Culture General Obligation (G.O.) Bond funding earmarked for affordable and workforce housing, to enable the City to fully renovate the Barclay as a City capital project, with the goal of creating new workforce and affordable housing units, with the completed project to be managed on the City's behalf by the Housing Authority. The proposed resolution also directed the Administration to identify revenue bond funding options for the project and state and federal grant opportunities to supplement City funding for the renovation of the Barclay. After discussion, the Mayor and Commission voted to defer the item for one month. On January 30, 2024, the Housing Authority Board of Commissioners passed HACMB Resolution No. 2024-01, approving negotiations with Legacy to partner in developing the Property. The Page 51 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 10 of 15 Resolution, transmitted to the Mayor and City Commission on January 31, 2024, authorized a twenty percent (20%)equity interest in the project and repealed all previous resolutions in conflict or inconsistent therewith. At the January 31, 2024 City Commission meeting. item R7F, a proposed resolution to terminate the RFP and commence the process to identify funding for City renovation of the Property, was withdrawn by its sponsor. The City Commission adjourned the January 31, 2024 meeting before considering companion item R9 M, an update by the Administration on the status of RFP discussions. J. February 23, 2024 Finance and Economic Resiliency Committee On February 23, 2024, pursuant to the City Commission's referral on September 13, 2023, the FERC discussed Legacy's Proposal dated February 13, 2024. During the meeting, the Committee requested the Developer explore refining certain proposal terms and return to the March 2024 FERC meeting. Among other considerations, the FERC requested that the Developer present the Committee with multiple development scenarios reflecting how compensation to the City is affected by adjustments to the tenant affordability mix, among other variables impacting Legacy's proposal. At the meeting, Commissioner Rosen Gonzalez withdrew her companion referral item C4 E, to discuss the conveyance of the Property to the Housing Authority. The Committee unanimously passed a motion for the remaining item (originating on September 13, 2023 as R9 M) to return the following month when the Developer could present multiple development scenarios and financial terms to assist the Committee in discussion of a recommended redevelopment strategy. The Committee requested that staff not engage in substantive discussions with the Developer regarding the Updated Proposal prior to returning to the March 2024 Committee meeting. K. Updated Proposal dated March 13, 2024 Following the February 23, 2024 FERC meeting, the Developer modified proposal terms and provided additional potential development scenarios in the Updated Proposal dated March 13, 2024, as summarized in Attachment B (Key Terms Table). Option 1 • Retains existing 3-story historic structure and proposes 7-story, 77-foot new construction tower. • Financial proposal offers second-lowest compensation to City (following Option 5, which offers zero compensation). No image provided by Developer • Highest affordability rate (65% of 71 total units) and highest diversity of income levels. • Same design as previous proposal presented to Committee (Proposal dated February 13, 2024). Page 52 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 11 of 15 Option 2 • Retains existing 3-story historic structure and proposes 12-story, 132- foot new construction tower. • Upfront payment of approximately 26% / Barclay purchase price by the City. / • Low affordability rate (32% of 113 total ' i units) and affordable/workforce units • segregated to the rehabilitated existing structure (i.e., new construction tower A wholly contains market rate units). . 1 • Tallest building height proposed ti.. (along with Option 4). t. Option 3 • Demolishes the existing historic structure and proposes 12-story, 132- foot new construction building. • Largest development option Air proposed (in terms of gross area 111101 (162,048 sf) and FAR (5.33)). • Upfront payment exceeding 100% Barclay purchase price. Offers the greatest financial compensation to the City. • Tied for lowest affordability rate (16% of 141 total units) and affordability is limited to tenants of 30% AMI households (in addition to market rate tenants). • Tallest building height proposed (along with Option 4). Page 53 of 1445 Commission Memo- The Barclay, RFP 2023-115-KB April 3, 2024 Page 12 of 15 Option 4 • Demolishes the existing historic structure and proposes 12-story. 132- foot new construction building. • Largest development option proposed \ (in terms of gross area (162,048 sf) and if FAR (5.33)). "5, • Upfront payment exceeding 100% Barclay purchase price. Offers the \.. greatest financial compensation to the City. • Tied for lowest affordability rate (16% - of 141 total units) and affordability is limited to tenants of 30%AMI households (in addition to market rate tenants). • Tallest building height proposed (along with Option 3). Option 5 _ - • Preserves the existing 3-story historic / , structure with NO new construction. �.� • Highest affordability concentration (100% of I-'" I '\ all 70 units used solely for affordable 7,. housing tenants) and no market rate or - - = workforce housing units proposed. ' " • Zero compensation to the City (i.e., no ; --4 r upfront payment, no recurring rent, no City TM.. ,!apacas , participation throughout Lease Term) and H. " would require gap project financing from the _ \ j, City in the amount of$3.9 million. 1 • Requires application and approval of several r_ 1 highly competitive public subsidies, funding ' � � sources, and tax exemptions (from federal, V ' state. and local entities including the City). I The only option contingent upon public 4 .. : 1'' i Il 1 I I I I l I � subsidy, according to the Developer. .1 r, March 22, 2024 Finance and Economic Resiliency Committee On March 24, 2024, the FERC reviewed five (5) development options from the Developer which differed in approach towards historic preservation of the existing structure, proposed financial benefits to the City, affordability mix of the residential tenants, and architectural design. Among the five (5) development options proposed by the Developer, the FERC highlighted Option 2 as striking an appropriate balance among preservation of the historic structure, providing a financial return, and increasing the City's residential housing supply. Noting that the proposed design includes new construction of a tower exceeding permitted height and floor area, the Committee Page 54 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 13 of 15 expressed willingness to compromise on greater building height and mass because the Developer proposes using FAR as a tool to make the project financially viable. As a condition to the FERC making a recommendation to the City Commission, the Developer agreed that the Option 2 proposal would include a minimum Upfront Payment of $6 million, subject to other terms to be negotiated. Motion: The Committee recommends that the City Commission award RFP 2023-115-KB to 1940 Barclay Partners, LLC, based on the Proposal dated March 13, 2024, Option 2, provided that the financial proposal includes a minimum Upfront Payment of $6 million. (3-0; Proffered by Commissioner Fernandez and seconded by Commissioner Bhatt). The information presented herein is preliminary and based solely on the Updated Proposal received. As is typical in these developments, the City must undergo extensive negotiations with the proposer to arrive at a final agreement, which will require approval by the City Commission. ANALYSIS As recommended by the FERC, the Developer's Option 2 Proposal, Attachment C, includes the following: i. Lease Term and Structure The Developer assumes responsibility for designing, financing, constructing, delivering, and operating the project. The City would retain ownership and title to the land and the Developer (Ground Lessee) would operate the project under a 99-year ground lease. As such, the RFP requires that the Property remain in the public domain. The Ground Lease shall be "triple net" (NNN), with the Ground Lessee solely responsible for all real estate taxes, utilities, assessments, and all other costs and expenses associated with the operation of the Project. The City's fee simple interest would be senior, and not subordinated to, any financing obtained by the Ground Lessee, and shall be non-recourse to the City. ii. Design and Site Plan The project includes renovation of the existing structure for mixed-use (ground floor commercial and mixed-income residential) and new construction of a 12-story, 132-foot residential tower with ground floor parking. With ground floor commercial proposed, the existing structure's history and character will be preserved; however, the proposed tower's 132' height and 3.46 FAR are above that which is permitted by the Code. Recognizing that preservation constrains development capacity and limits the number of developable housing units, this scenario compensates with a larger tower that exceeds what would normally be permitted. Zoning Information Applicable GU Zoning Existing Property I Option 2 Gross Floor Area(sf) 82,880 27,505 105,146 Permitted/Estimated FAR 2.37 0.9 3.46 Total Buildings n/a 1 2 Height 75' 38' 132' Stories n/a 3 12 Page 55 of 1445 Commission Memo— The Barclay, RFP 2023-115-KB April 3, 2024 Page 14 of 15 iii. Residential Unit Mix and Affordability As currently proposed, Option 2 contemplates 32% affordability, with limited diversity as the project would only serve qualified tenants at 140% and 30% AMI, and nowhere in between. Further, the affordable and workforce tenants would be limited to renting studio units and nothing larger in size. Unit Mix Option 2 Total Units 113 %Market Rate 68% Affordable/Workforce 32% 140%AMI 16 120%AMI 0 80%AMI 0 60%AMI 0 30%AMI 20 Market Rate 77 Total Studios 66 Total 1BR 35 Total 2BR 12 Total 3BR 0 iv. Compensation to the City Option 2 proposes a one-time Upfront Payment and guaranteed recurring Annual Rent, with Annual Rent Escalation tied to the Consumer Price Index (CPI), with a floor of two percent (2%) and a ceiling of three percent (3%). In addition, Options 2 also proposes City participation in Net Operating Income (NOI) at one percent (1%) and City participation in any sale or transfer of the property, after the initial sale, at one percent (1%) of the value. Option 5 includes none of the foregoing because it is the sole option in which zero compensation whatsoever is offered as part of the development and ground lease proposal. Financial Proposal I Option 2 Upfront Payment $1,500,000 Annual Rent $100,000 Projected Rent(99 years) $31,810,971 Annual Escalation CPI,with 2%Min and 3% Max Transfer Participation 1% NOI Participation 1% %Market Rate 68% %Affordable/Workforce 32% Total Units 113 Page 56 of 1445 Commission Memo- The Barclay, RFP 2023-115-KB April 3, 2024 Page 15 of 15 The information presented herein is preliminary and based solely on the Updated Proposal received. As is typical in these developments, the City must undergo extensive negotiations with the proposer to arrive at a final agreement, which will require approval by the City Commission. LOBBYIST DISCLOSURE In accordance with Resolution No. 2023-32857, adopted by the City Commission on December 13. 2023, the following information has been provided by the Administration as it relates to the subject resolution: 1. Was the Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No 2. If so, specify name of lobbyist(s) and principal(s): N/A SUPPORTING SURVEY DATA The Mayor and City Commission identified the need for workforce and affordable housing as a key objective in the City's 2019 Strategic Plan Through the Lens of Resilience. The City's 2040 Comprehensive Plan prioritizes affordable housing, with the express goal "to encourage redevelopment that provides workforce and affordable housing" within the City." FINANCIAL INFORMATION Preliminary details on the proposal are included herein. Final financial terms will be provided as negotiations are concluded, and the final agreement is presented to the FERC and City Commission for approval. CONCLUSION The Developer's Option 2 proposes a redevelopment project which preserves the historic structure at the Barclay, provides financial benefit to the City, and a roadmap for activation of a vacant asset that currently provides no benefit to the community. While it is incumbent upon the City Commission to prioritize its development objectives for the Barclay, action is needed to provide additional housing to the City's workforce and activate an underutilized City asset for the betterment of the community. Upon authorization to negotiate, the City shall seek a comprehensive package of resident and community benefits. Should additional deal terms arise which have not been explicitly outlined within the Updated Proposal, it would not preclude the City from negotiating more favorable terms during a formal negotiation process. For the reasons stated herein, it is recommended that the Mayor and City Commission approve the Resolution awarding the RFP and authorizing the Administration to enter into negotiations with 1940 Barclay Partners LLC, as the sole proposer. The Administration would formally commence negotiation of terms more favorable to the City's interests, which interests and objectives should be clearly defined by the City Commission, to yield the greatest public benefit. Following City Commission direction, negotiated terms would again be presented to the FERC and the City Commission for consideration and approval. Page 57 of 1445 ATTACHMENT Evaluation Committee Relative to Request, for Proposals(RFP)2023-115-KB co to Low 1'Redevelopment of the City-Owned Ozzie Dominguez ;E Ariel turban Marcela Rubio Heather Shaw ��'e ro aU 2Property Located at 1940 Park Avenuec a aTotals (The Barclay) aNMtatrve Quantitative SubtoW 1 Qualitative Quantitative 1 Subtotal Qualitative Quantitative I Subtotal Qualitative 1,Quantitative I Subtotal Lsgery Real Estate Development L C 88 0 88 it -_...90 1 n r a 8 i 71 83 0 i 83 1 4 1 1 r Told Clruu. Fagr tar.rn FM. Ohio.* _. Legacy Real Estate Development,LLC o 0 Page 58 of 1445 Key Terms-Legacy March 13,2024 Developer Potential joint venture between Legacy Real Estate Development and Urban American ("Developer" or"Legacy") Lease • No sale; the City retains ownership of the land over 99-year Lease Term Structure • City's fee interest shall be senior, and not subordinated,to any financing (which is non-recourse to the City) — —._ -1 • Address: 1940 Park Avenue • Lot Size: 30,359 sf Existing • Zoning District: GU Property • Existing Structure: 3-story contributing building • Construction Year: 1935 • Historic District: Museum Historic District and Miami Beach Architectural District Option 1 Option 2 Option 3 Option 4 Option 5 Two(2)buildings: Two(2) buildings: One(1)building: One(1) building: One(1)building: Existing Structure: Existing Structure: New Construction only: New Construction only: Existing Structure only: 40 studios with 36 studios with ground 82 units with ground 141 units with 70 affordable units (no Design & ground floor floor commercial floor commercial and commercial use and workforce or market Site Plan commercial parking parking on the ground rate) and no accessory New Construction: floor commercial uses New Construction: (Existing Structure 31 units with ground 77 units with ground demolished) (Existing Structure floor parking demolished) floor parking Historic Yes Yes No No Yes Preservation Gross Floor Area 52,686 sf 105,146 sf 72,500 sf 162,048 sf 52,686 sf Height 77 ft/ 7 floors 132 ft/ 12 floors 66 feet/6 floors 132 ft/ 12 floors 38 ft/3 floors FAR 2.58 3.46 2.375 5.33 1.73 Residential Units 71 113 82 141 71 i Project Cost $27,477,106 $50,792,404 $41,403,067 $67,776,900 1 $25,812,004 Page 59 of 1445 Key Terms-Legacy March 13,2024 Option 1 Option 2 Option 3 1 Option 4 Option 5 Compensation to City Upfront Payment $ 344,000 $ 1,500,000 $ 5,000,000 $ 6,000,000 $0 Annual Rent 1 $ 50,000 $100,000 $ 100,000 $ 100,000 $0 Rent Escalation CPI;2%Min/3%Max CPI; 2%Min/3%Max CPI; 2%Min/3%Max CPI; 2%Min/3%Max n/a Projected Rent 2(99 Years) $ 15,499,486 $ 31,810,971 $ 35,310,971 $ 36,310,971 $0 NOI Participation 1% 1% 1% 1% None Projected NOI (99 Years) $ 10,450,391 $ 17,700,984 $ 15,017,047 $ 24,339,806 $0 Sale/Transfer Participation 1% 1% 1% 1% None Projected Sale Participation $795,988 $ 1,064,459 $ 910,135 $ 1,477,920 $0 Unit Mix Total Units 71 113 82 141 70 %Market Rate 35% 68% 84% 84% 0 %Affordable/Workforce 65% 32% 16% 16% 100% 140%AMI 13 16 0 0 0 120%AMI 8 0 0 0 0 80%AMI 5 0 0 0 29 60%AMI 0 0 0 0 21 30%AMI 20 20 13 36 20 Market Rate 25 77 69 105 0 Total Studios 56 66 34 61 40 Total 1BR 12 35 31 48 25 Total 2BR 3 12 12 25 5 Total 3BR 0 0 5 7 0 Developer proposes Annual Rent commencing upon Certificate of Occupancy(CO),anticipated by Developer to occur 3 years following DA& Lease approval. 2 Combines Upfront Payment and total Annual PlielepeVrientmcsmservatively escalated 2%each year,over 99-year Lease Term. Key Terms-Legacy March 13,2024 • Short term rentals are prohibited. Use Restrictions • Ground Lease will incorporate workforce housing and affordable housing requirements of Chapter 58 of City Code, provided however that restrictive covenants relating to workforce/affordable housing units will run with the land for the entire Ground Lease. • Assuming City Commission authorizes negotiations, the FERC must review Lease Terms, before City Commission consideration and approval of Development Agreement(DA)and Ground Lease including conceptual design. Project • Developer responsible for required design approvals(HPB, PB,etc.). Approvals • Following regulatory approvals, City Manager approves Plans to ensure consistency with approved conceptual design • Voter Referendum not required per City Charter. • Required target dates to achieve Project milestones remain subject to negotiation. Construction • Legacy's RFP Proposal proposed an aggressive schedule, with Construction Commencement approximately 15 months Timeline after Lease approval by City Commission and Construction Completion 35-43 months after Lease approval. • The City has not been provided with an updated milestone schedule with the Updated Proposal. Insurance, • Triple net lease(NNN),with Lessee solely responsible for all real estate taxes,utilities,assessments,or other public charges, Taxes, Utilities insurance, common area maintenance, and all other costs and expenses associated with operation of the project. • No Developer termination for convenience following the Possession Date(i.e.,once all regulatory approvals and financing for the Project have been obtained, and Developer takes possession of the property per the Ground Lease). Termination • City will not have the right to terminate the DA for convenience. for Convenience • However, City will have the right to terminate for cause, i.e., as a result of any default by Developer, which continues beyond the expiration of any applicable notice and cure period. • Direct and indirect jobs and local hiring objectives. • Renovation, for long-term sustainability and resiliency,of existing historic building(Options 1, 2, 5 only). • LEED accreditation. • Property tax or other tax revenue to the City(excluding Option 5) Developer's Proposed • Public safety. Public Benefits • Community amenities, public infrastructure,and/or open space(s)accessible to the public. • Contribution to Miami Beach ideals,vision,and brand. • Creation of workforce and affordable housing in response to the City's significant need for a greater supply of accessible housing for those who live and work in the city. • Military veteran leasing preference in residential and commercial spaces. • Note: Upon authorization to negotiate, the City shall seek a comprehensive package of resident and community benefits. Page 61 of 1445 L EGACY REAL EST AT E DEVEL OPMENT URBAN AMERI CAN The Barclay Option2 03/13/2024 Project Description: The Barclay Option 2. Similar to options one and five this option would retain the historic structure of the building. However, the new construction in this option would rise up to twelve floors or 132 ft in height in order to maximize the payment to the city while retaining the historic structure of the building. Additionally, it would also be necessary to reduce the affordable and workforce units to 32% of the units. The unit mix will have studio, 1-bedroom, and 2-bedroom apartment units. Unit Mix Unit Type Current Affordability AMI Current SF Current Unit Count' Studio Workforce Housing 1405y, 400 SF 16 Studio Extremely Low icome(ELI} 30% 400 SF 20 Studio Market Rate MR 575 SF 30 1-Bedroom Market Rate MR 744 SF 35 2-Bedroom Market Rate MR 919 SF 12 Total Mixed Income 68,718 SF 113 Our proposal to the city: Option 2 ADU/Workforce DU 20/14 Height/FAR 132/2.58 Public Subsidy No Retain Historic Yes Upfront Rent 1,500,000 Annual Payment 100,000 NOI Participation 30,804 Participation Capital Event 1,061,739 Our partner the Miami Beach Housing Authority is reviewing this simultaneously. In the event that you have any questions we would welcome a call to discuss The Barclay Option 2 Page 62 of 1445 TERM SHEET OUTLINE (Subject to Modification) 1. Proposer Development Entity. a. Developer Team. Identify the developer entity, or joint venture to be formed, if applicable, in connection with the Project and any development partners involved with the Project, whether in relation to Request for Proposals 2023- 115 (the "RFP"), Term Sheet negotiations, or development, construction, and/or operation of the Project. For any joint venture or special purpose entity formed, include a disclosure of interest for all owners, managers, members, etc., and percentage of ownership held by each. JV Entity 1 1940 Barclay Partners, LLC. • LRED Barclay, LLC (65%) • Urban American Management, LLC (25%) b. Key Personnel. Submit a list of all principals for the Developer and all key team member firms (including developer partners, general contractor, key architecture/engineering firms, management/operation firms, and firms providing capital/financing.) Legacy Real Estate Development-Donahue Peebles Ill (Chairman & CEO) Urban American -Joshua Eisenberg (CEO) Housing Authority Operations: Trident-George Zamora (Broker) Financing: Berkadia Mortgage Banking-Mathew Baptiste(Managing Director) Construction: OHLA - Bernardo Perez (EVP) Journey -Clifford Moore (CEO) Land Use Council: LSN -Tracy Slavens Planning & Permitting: E.L. Waters & Company-Elbert L. Waters (Principal) Consultants: Spinnaker Group - Jesse Rittenhouse (CEO) Heritage Consulting Group-Cindy Hamilton (President) Design - Stuart Architecture - Stuart Anson (CEO) Brooks + Scarpa -Jeffrey Huber (Principal) Page 63 of 1445 Engineers: Feller Engineering — Musa Yanni (CEO), Green Coastal Engineering — Morteza Khatib (CEO), Dynamic Engineering — Hanna Khouri (CEO). 2. Project Description. a. Ground Lease Term and Structure. Indicate desired length and structure of lease terms. The duration of the lease term shall be no greater than 99 years. The lease shall be a "triple net" lease (NNN), with lessee to be solely responsible for all real estate taxes, utilities, assessments or other public charges, insurance, common area maintenance, and all other costs and expenses associated with the operation of the project. The City's fee simple interest shall be senior, and not subordinated to, any financing obtained by the Ground Lessee, and shall be non-recourse to the City. The ground lease will begin with $1,500,000 upfront payment. The annual rent will be $100,000. The development team anticipates a year 3 certificate of occupancy. b. Zoning Data. Provide a zoning data table summarizing the required zoning elements for the Project and broken down for each Project component or proposed use. The table should include, but not be limited to: floor area, FAR, unit sizes, height, and number of stories. c. Specify any proposed zoning or design that does not conform to applicable Land Development Regulations (LDRs) within the zoning district. Page 64 of 1445 Requested Zoning Current Zoning Zonin. GU Zoning RM-2 Uses Mixed Use Uses Residential Multifamily FAR 3.46 FAR 2.0 Height 132 Height SOFT Historic Dsitrict' Stories 12 Stories 5 Minimum Unit Size 400 SF/Affordable&Workforce Minimum Unit Size 400 SF/Workforce CCC Civic Zoning(Convention Center) Zoning CCC Civic Uses Commercial FAR 2.75 Height 100 FT P3 Zoning Zoning GU Uses Mixed Use Fa 2.375 Height 75 FT Required for proposed development table reflects what is needed for the proposed development* Mixed use specifically for restaurant, café, and office space on the ground floor* d. Proposed programming for each floor, the floor area, and percentage of the building's entire floor area correlating with the intended uses(s). Please see the design package in the exhibits that was provided to us by Brooks + Scarpa. They are working on providing us with more detailed programming on each floor. Page 65 of 1445 e. Residential Units. Providing complete answers for each of the following numbered items is mandatory. Please specify: i. Total number of residential units. ii. Total number of each unit type, e.g. number of rooms (studios, 1 BD, 2BD, etc.). 56 studios and 15 1BD iii. Unit size of all unit types (if unit size varies among the same unit type, please specify the number of units at each varying unit size). Unit Type Current Affordability AMH Current SF Current Unit Count Current Rent Studio Workforce Housing 140% 400 SF 16 52,530 Studio Extremely Low(come(ELI) 30% 400 SF A 51.851 .r. Studio Market Rate MR 575 SF 3t1 $3,242 1-Bedroom Market Rate MR 744 SF 35 $4,195 2-Bedroom Market Rate MR 919 SF 12 54.825 _ — Total Mixed Income 68,718 Sf 113 5379.485 iv. Total number of market-rate units and total number of non-market rate units. 32% Affordable&Workforce 36 lAffordbale%Workforce 68% Market Rate 77 Market Rate v. For non-market rate units, specify the tenant income mix, i.e., within units dedicated to non-market rate housing, indicate all target income levels and, for each targeted income level proposed, indicate the number of units, the number of unit types, and the number of unit sizes allocated to that income level. ' Unit Type Current Affordability AMI Current SF Current Unit f ount Current Rent Studio Work fcr 140% 400 SF 16 57.530 Studio E..rtremely Low(come(EL'; 30% 400 Si 20 $1851 PBV' Studio Market Rate MR 575 SF 30 $3,242 1-Bedroom Market Rate MR 744 SF 35 54,195 2-Bedroom Market Rate MR 919 SF 12 54,825 L—_ Total Mixed Income M1,711 SF I T *MVOS vi. Specify where market rate and non-market rate units will be allocated within the residential component (including which floors). Page 66 of 1445 All affordable & workforce units could exist within the historic structure. All market rate units could exist within the new construction. This type unit mix distribution may the only way to get the City of Miami Beach a strong upfront payment while retaining the Historic Structure. vii. Estimated monthly rental rates for all market-rate units. Monthly rates: Unit Type [invent Affordability AMI Omni tR SF Curtent Unit Count Current Rent Studio Workforce Housing 14016 400 SF 16 $2,530 _ Studio Extremely Low[come 1 Fill 30% 400 SF 20 $1,851 P8V' Studio Market Rate MR 575 SF 30 $3,242 1 Bedroom Market Rate MR 744 SF 35 54,195 2-Bedroom Market Rate MR 919 SF 12 $4,825 Total Mixed Income 68,718 SF - — 113 S379,4115 viii. Number, unit type, and unit size of co-living and/or micro-unit arrangements, if any. The project does not need any arrangements for unit number or unit size. ix. Short-term rentals of residential units shall be prohibited. Agreed f. Ground floor activation, including floor area, allocated for retail, commercial, or other nonresidential uses, excluding parking, on the ground floor. This would mirror the ground floor program for Option 1 g. Any other elements of program, amenity spaces, parking etc. Aside from the parking area on the ground floor of the new construction which will provide us with 36 parking spots, we are also going to have 11 on street parking spaces. We will have a total of around 8,779 SF in gross parking area. We could potentially also have a total of around 12,160 SF in gross community and Amenity spaces. Page 67 of 1445 Parking Breakdown Location Spaces Category Parking Lot 1 22 Off Street Easement 14 Off Street Park Ave 7 On Street Wngtn Ave 4 On Street Off Street 36 On Street 11 Total Prkng 47 There is also space for adding a platform above the parking area where we could potentially fit a garden and/or a small pool. That area can be accessible from the second floor. Page 68 of 1445 3. Development Budget I Operating Budget. a. Design and construction including hard/soft costs, 2% Art in Public Places (AIPP) fee per City Code Sec. 82-537, contingency and escalation, and any developer fees. Art in public spaces: $717,053 'These are approximations based on our proforma Hard Cost Contingency: $3,636,056 Soft Cost Contingency: $291,344 Escalation: $424,993 Developer Fees: $1,687,498 b. Operation and maintenance. Stabalized Operating Expenses E.,oenses U i "Year Total %Fixed Payroll $1,500 S169,500 80't General&Adminitsrative $2,101 $237,413 50% Marketing $109 $12,317 100% Repairs&Maintanence $435 S49.155 30% Trunover $300 S33,900 0% Contract Services 5278 $31.414 80% Utlities $271 S30,623 20% Utlity Bill-Back t$25) t$2.825) 0% Valet S0 SO 0% Insurance $2,000 $226.000 100% Total S6,969 S787.497 68% c. Pro forma demonstrating annual operating plan and budget for a minimum of 20 years, including all debt, fees, and reserves. See Exhibit E 4. Project Financing. a. Sources. Public or private funding sources of any kind, including any grant funding, tax credits. or local, state and/or federal government funding or subsidies. i. Through the General Obligation (G.O.) Bond for Arts & Culture, the City may consider funding a portion of the project that is solely designated for affordable/workforce housing for individuals employed directly by the City's arts and cultural institutions. We are currently not assuming any grants in our proforma. Page 69 of 1445 b. Finance Plan. Developer team and third-party equity participation in the project, if any, and proposed loan/equity ratio; expected financing role of the manager/operator; the structure for and amount of third-party debt Sources(Contruction Financing) Equity $17,777,341 Debt $33,015,063 Total $50,792,404 c. Proforma. Provide a detailed financial proforma for the project (including assumptions for the amortization period of any debt service and, at a minimum, modeling for the initial 20 years of cash flow) and details of planned capital investment(s). See Exhibit E. 5. Financial Proposal. a. Remuneration to the City, as applicable: i. Desired lease term. 99-Year lease term ii. Initial upfront payment to the city. $1,500,000 iii. Schedule of proposed minimum guaranteed rent, annual escalator, and percentage gross revenues throughout the term. The ground lease will begin with an upfront payment of $1,500,000. The annual rent will be $100,000 with an annual escalation tied to CPI with a floor 2% and roof of 3%. Annual rent will begin being charged after certificate of occupancy. The development team anticipates a year 3 certificate of occupancy. Hold Period Ground lease Y9E11 Yoga Y9o13 Yee 4 Year y —a a ylarl •ear Y$7t3 IOW! a111 S104040 S100.121 S108.243 $110.408 S112.618 S114.889 S117.188 S119.509 $121.899 Year 12 Yi3at.13 Year 14 Year 15 'AKA Yawl./ 111l18 YstaL12 Yea24 YBat21 Year 22 $124,337 S126,824 $129,361 S131.948 S134.587 S137.279 S140,024 S142.825 S145,681 S148.595 $151,567 Y971.23 1.61 26 Yeal26 Yae 27 Yeet28 Yei29 Yeal34 YBar 31 Year 32 YBaL33 $154,598 S157.690 $160.844 S164,081 $167.342 $170,689 $174.102 $177,584 $181,138 5184.759 $188.454 Year 34 YBef 35 Y9YL34 Yee 37 LIRA AK 3Q Yeir40 Y 1 Y 4 Y 4 YBir 44 S192,223 S196,068 $199.989 S203.989 5208,069 $212,230 $216,474 S220,804 S225,220 S229.724 5234,319 Year 45 Ye4 49 IRK 54 Y nt_51 Yee 52 Yaar 53 Yee 54 Year 55 $239.005 $243,785 S248.661 S253,634 S258,707 $263.881 S269,159 $274,542 S280.033 S285,833 S291.348 Year 5t Year 57 Year 58 Yee 59 Yee 60 Yee 61 !ICU Yee 63 Year 64 Yee 65 Yg]M S297,173 S303,117 6309.179 S315.362 S321,670 6328,103 S334,665 $341,358 5348.186 S355.149 S382,252 Year 87 tNIL@H tear 69 Year 7Q Year 71 Y 7 YMr 73 Y4lr 74 y_eeL/5 Y#A 77 $369.497 $376,887 $384.425 $392114 $399.956 $407,955 $416,114 $424,436 $432.925 $441,584 S450,415 Year 78 Year 79 Year 80 Year 81 Yee 82 Year 83 !nag Year 85 YL0512,6 yeaL8L yea.$6 $459 424 S488,812 S477,984 S487,544 $497,295 S507 241 1517.386 S527 733 S538.288 S549 054 S560.035 Year 89 1liad@Q 143C9.1. Yfa[.82 Year 93 Y5d[.94 Year 95 Year 96 Year 97 year yeaLga Year 9i $571,235 5582.660 $594,313 S806.200 $61.8.324 $630,690 S643.304 S656.170 S669 293 5682.679 S696.333 Page 70 of 1445 iv. Summary of any other payments or compensation proposed. • Proposed compensation in connection with any sale or transfer. 1% on any 3rd party transfer after the initial sale. • NOI participation of 1% • Annual Ground Lease: 100,000 annually with escalation CPI with a floor of 2% and a roof of 3% • Upfront Rent: $1,500,000 6. Additional Public Benefits. Other public benefits proposed including, but not limited to: a. Direct and indirect jobs and local hiring objectives. b. Property tax or other tax revenue to the City. c. Public safety. d. Community amenities, public infrastructure, and/or open space(s) accessible to the public. e. Contribution to Miami Beach ideals, vision, and brand. f. Other community benefits. Our goal is to: • Increase energy efficiency in buildings and reduce greenhouse gas production and emissions. • M/WBE Participation • Encourage water and resource conservation. • Reduce waste generated by construction projects. • Reduce long-term building operating and maintenance costs. • Reserving workforce and affordable housing units for City of Miami Beach arts and culture employees • Improve indoor air quality and occupant health. • Maximize the use of green and blue infrastructure to treat, retain and manage stormwater. • Utilize native vegetation and trees to maximize natural infrastructure throughout the site. • We will address the stresses of climate change, including extreme heat and frequency and severity of storms when designing for function and form. • We will utilize the South Florida Climate Change Compacts Unified Sea Level Rise Projection when considering elevations of the site. • Utilize public art and placemaking opportunities to enhance the resiliency of the site. Page 71 of 1445 Placemaking should incorporate business and marketing opportunities; community aesthetics, cultural identity, and cohesion; and serve to brand the City of Miami Beach as a resilient City. Retaining at least the 100th percentile of local rainfall events using Low Impact Design and/or Green Infrastructure will be a priority considering the increase in severity of storms in Miami Beach. To reduce heat island effects, landscaping, high SRI pavers, light colored concrete, covered parking, and high SRI roofing will be strategies incorporated into the project. We will participate in Art in Public Places, a City of Miami Beach program for curating and commissioning public art. We have designated public art space throughout the campus. As stated in the RFP: 1.- Workforce & Affordable Housing: The creation of affordable units at The Barclay site provides a significant community benefit. Miami Beach has a particular need for affordable housing, and the inclusion of workforce housing in this development helps to address that need. By providing affordable housing, more members of the community can live and work in Miami Beach, promoting economic growth and diversity. In addition to addressing the need for affordable housing, our team is committed to supporting Veterans by offering a leasing preference for both commercial and residential occupancy. We will work with the local Veteran Affairs office and the local Military recruiting office to source candidates on an ongoing basis. The inclusion of workforce housing in The Barclay development is an opportunity to address a pressing need in the community while also promoting economic growth and diversity. Our team is committed to making a positive impact in Miami Beach, and we believe that this project can make a difference in the lives of many community members. 2.- Reoccurring Tax Revenue: The addition of The Barclay to the tax rolls will provide significant economic benefits to Miami Beach. Property taxes generated from the project will be a crucial source of recurring revenue for the city. This revenue can help to fund local government services and infrastructure, which can Page 72 of 1445 lead to an improved quality of life for residents. Furthermore, the project will help to revitalize the area and create new economic opportunities for businesses and individuals. During the construction phase, The Barclay will serve as an economic catalyst by creating job opportunities for local residents and businesses. This will not only provide income for those involved in the construction process but will also create a ripple effect throughout the local economy. Overall, The Barclay project is a significant opportunity for Miami Beach to generate recurring tax revenue, support local government services and infrastructure, and create new economic opportunities for individuals and businesses in the community. 3.- Public Safety: The safety and security of the community is of the utmost importance, and our team at The Barclay is committed to enhancing public safety in the area. Our plans for the project include the installation of new lighting, security cameras, and other safety features that will provide a safer environment for residents and visitors. With these safety measures in place, individuals will feel more comfortable and secure when navigating the area, and law enforcement will have additional resources to ensure the safety of the community. The increased safety will also help to promote the neighborhood's cultural vibrancy by encouraging more foot traffic and increasing the likelihood of events and activities being held in the area. We understand the importance of public safety and are committed to working with the city of Miami Beach and local law enforcement to ensure that The Barclay is a safe and welcoming environment for all. Our team takes the safety and security of the community seriously and will continue to make enhancements to the property to improve public safety in the area. 4.- Investment in Arts and Culture: The Barclay will not only be a beautiful and functional building, but it will also contribute to the arts and culture scene in Miami Beach. As part of the project, we plan to make a substantial investment in arts and culture. Our goal is to create an environment that is both functional and visually Page 73 of 1445 stunning. We believe that the arts are an important part of any community, and we are committed to making The Barclay a space that is welcoming and inclusive to all. We plan to partner with local arts-focused non-profit organizations to create opportunities for local artists to showcase their work. The community will have access to the artwork, and we will make sure to include public spaces to feature local artwork. We believe that by supporting local artists, we can help to strengthen the cultural fabric of Miami Beach. Our goal is to create an environment that is inclusive, diverse, and dynamic. 5.-Cultural Vibrancy: The Barclay project will significantly contribute to the cultural vibrancy of the Miami Beach community. By activating the street with new retail options, public art, and community amenities, the project will create a more vibrant and attractive neighborhood for both residents and visitors. The new retail options will provide local businesses with an opportunity to thrive, while the public art will enhance the aesthetic appeal of the area. The addition of community amenities will further strengthen the sense of community and create more opportunities for social interaction. The cultural vibrancy created by The Barclay will not only enhance the overall quality of life for residents in the area but will also create a more appealing destination for tourists. As a result, the project has the potential to boost the local economy by increasing tourism and attracting new businesses to the area. The creation of a more vibrant and livelier neighborhood will also contribute to a sense of community pride and ownership, as residents take pride in the enhanced aesthetics and amenities of their neighborhood. 7. Development Agreement. a. Proposed term of the Development Agreement with the City, subject to extension for force majeure, and measuring for a period separate from the term of the Ground Lease. b. Proposed City Code/Comprehensive Plan amendments to accommodate the Project. There is a necessity for any city code/comprehensive plan amendments to accommodate this project. Page 74 of 1445 c. Increases to floor area or height (including a unified development site with any other abutting property or transfer of development rights). This project does require an increase in height or FAR beyond what is allowed through GU zoning. d. City and County fee waivers or exemptions to be requested. As this development is going to be in partnership with the City of Miami Beach, we believe it is reasonable to receive a governmental exemption for both City and County fees. e. City Commission will approve the Concept Plan design and the Developer will be responsible for all design approvals (Historic Preservation Board (HPB) and Planning Board. if applicable). After regulatory approvals are obtained, the City Manager approves final Plans and Specifications to ensure the Project is being developed consistent with Concept Plan design and the Project requirements, and material modifications thereto. The initial site plan &massings can be observed in Exhibit-A at the end of the document. f. Plans for public engagement and community outreach, including to resident/neighborhood associations, with advance notice to City staff. Bilingual outreach must address Developer's planned efforts for mitigation of adverse development impacts. Plans for public engagement and community outreach There will be Art in Public Spaces Ground floor activation will also bring relief to the local community that is upset with a neighborhood eyesore. Taxes generated from our project will also benefit the City of Miami Beach significantly. 8. Development Schedule. Proposed schedule for the following Project milestones, indicated in number of months following the approval of the Development Agreement. a. City Commission approval (Development Agreement and Ground Lease) Page 75 of 1445 b. HPB design approval c. Closing on Project financing d. Building permit e. Possession Date f. Commencement Date for construction and any phasing g. Outside Date for Completion of Construction h. Outside Opening Date i. Stabilization Date Please see Exhibit-B at the end of this document. Rough estimate that needs to be fine tuned. 9. Condition of Property/Environmental. a. Property in AS IS condition, subject to review of the environmental Phase I and/or II, to be obtained for the Project by the Developer. Selection of vendor conducting environmental review is subject to reasonable approval of City. 10. Management and Operation of Facility. a. Marketing Plan. Narrative addressing marketing to eligible participants and, if applicable, how you will achieve the proposed mix of tenants within the range of AMI as set forth in your response to Section 2). Introduction: Our affordable housing development project aims to provide high-quality housing options to eligible participants within the range of Area Median Income (AMI) mentioned previously. Leveraging the expertise of our experienced teams, including Eklund Gomes in marketing Class A apartment buildings, Urban American, and Trident in managing workforce and affordable units, we are confident in achieving our goals. Additionally, we aspire to create a diverse community by offering housing options to city employees working in the arts and culture sectors. Target Audience: Our primary focus is on eligible participants falling within the specified range of AMI. 30% AMI extremely low-income housing and market rate apartments. Marketing Strategies: Online Presence: Develop a user-friendly website showcasing the amenities, floor plans, and application process. Page 76 of 1445 Utilize social media platforms to engage with potential tenants and share regular updates about the project's progress. Implement search engine optimization (SEO) techniques to ensure the project website ranks high in relevant online searches. Collaborations and Partnerships: Partner with local arts and culture organizations to promote our housing units among city employees in these sectors. Collaborate with community influencers and advocates to spread awareness about the affordable housing options available. Community Engagement: Organize outreach events, workshops, and seminars to educate eligible participants about the application process, eligibility criteria, and benefits of living in our development. Participate in local community fairs and events to interact with potential tenants directly. Specialized Marketing: Design tailored marketing materials highlighting the benefits of our housing units for city employees in arts and culture spaces. Offer exclusive incentives, such as discounted rent for the first few months, to attract city employees working in specified sectors. Innovative Marketing Campaigns: Launch creative marketing campaigns, such as virtual reality tours of the housing units, to provide potential tenants with an immersive experience. Develop engaging video content showcasing the development's amenities, neighborhood attractions, and testimonials from satisfied tenants. Local Government Collaboration: Collaborate with local government agencies to promote our housing units as a preferred option for city employees, emphasizing the convenience of living close to their workplaces. Achieving the Mix of Tenants within AMI: Page 77 of 1445 To ensure a balanced mix of tenants within the range of AMI, we will implement the following strategies: Income-Based Eligibility Criteria: Establish clear income-based eligibility criteria to categorize applicants into different income brackets. Allocate a specific percentage of units for each income bracket to maintain a diverse community mix. Transparent Application Process: Implement a transparent application process where applicants are screened based on their income, ensuring that the allotted percentage of units for each income bracket is adhered to. Regular Monitoring and Reporting: Regularly monitor the income levels of existing tenants to ensure that they still qualify within the designated AMI brackets. Generate periodic reports for stakeholders, demonstrating the diversity within the community in terms of income levels. Conclusion: By employing these marketing strategies and focusing on collaboration, community engagement, and specialized marketing efforts, we are confident in achieving a balanced mix of tenants within the specified range of AMI. Furthermore, our collaboration with local government agencies and targeted outreach to city employees in arts and culture spaces will contribute to the creation of a vibrant, diverse, and inclusive community within our affordable housing development. b. Operational Plan. Narrative addressing Facility maintenance, utilities, and standards of operation, including but not limited to: i. Maintenance/repairs To ensure the longevity of the facility within budget constraints, we propose implementing a cost-effective maintenance schedule. This plan covers structural and equipment repairs, Page 78 of 1445 addressing wear and tear, and prioritizing essential renovations to maintain functionality while managing expenses efficiently. ii. Lighting Our cost-effective lighting plan focuses on energy-efficient options for both interior and exterior areas. Regular inspections, maintenance, and thoughtful replacement strategies will allow us to ensure proper illumination without unnecessary expenditures. iii. Landscaping We propose a cost-conscious landscaping plan that includes routine lawn and garden care, tree and shrub maintenance, and economical solutions for walkway and outdoor space maintenance. This plan aims to create a pleasant outdoor environment without excessive spending. iv. Electricity, telephone, internet and data, cable, sanitary sewer, water. Efficient utility management is crucial to cost savings. We will maintain contracts with utility providers but also work on monitoring and conserving utility usage. To minimize expenses, we will establish contingency plans for potential disruptions and explore cost- effective waste management practices. v. stormwater, trash and recyclables. exterior access door control, To address stormwater management in a cost-effective manner, our proposal involves a proactive approach that ensures compliance with environmental regulations while managing costs responsibly. We will implement a system of drainage maintenance to prevent clogs and ensure the efficient flow of stormwater. This includes regular inspections of drains, gutters, and stormwater channels to clear any debris, and prompt repairs if any issues are identified. In addition, we will explore the use of permeable surfaces to minimize runoff and mitigate the risk of flooding. Our plan for managing trash and recyclables focuses on efficient waste disposal and recycling practices to minimize expenses. We will partner with local waste management services to optimize collection schedules and explore cost-effective methods such as bulk disposal for larger items. Additionally, we will promote recycling among residents and staff, aiming to reduce waste and minimize disposal costs. Security and safety are paramount in managing exterior access door control. Our proposal includes regular inspections and maintenance of access control systems, ensuring that they remain fully functional. We will also implement a cost-effective key management system and upgrade, or repair access control hardware as needed. While prioritizing security, we will consider budget-friendly options to maintain a secure and efficient exterior access door control system. These approaches to stormwater management, trash and recyclables, and exterior access door control are designed to align with the facility's budgetary constraints while still Page 79 of 1445 maintaining high standards of operation and safety. Cost-effective solutions will be a central theme in the execution of these elements, promoting sustainability and efficient resource management. vi. Security Prioritizing safety without overspending, our security plan involves judicious investments in access control systems, surveillance, and alarms. Regular security audits will ensure that resources are allocated wisely, and staff will be trained to respond effectively to security incidents. vii. Parking We plan on using a 3rd party valet service or paying the parking fee to the city of Miami beach for any required parking that is not satisfied with our parking. viii. Resident complaints/issues. While prioritizing resident satisfaction, we will maintain an efficient procedure for residents to report complaints and issues. Our cost-effective approach ensures that we address concerns promptly and utilize resources judiciously. We will establish a tracking system to monitor complaint resolution without unnecessary costs. ix. Penalties in lieu of default for failure to achieve maintenance and operation standards. This element is mandatory. In accordance with our commitment to maintaining high standards of operation and efficiency, we acknowledge the need for a mechanism to address any deviations from these standards. While we strive to operate within budget constraints, we also understand the importance of accountability. To ensure compliance and uphold the agreed-upon maintenance and operation standards, we propose the implementation of a penalty framework for any significant lapses in performance. These penalties will be designed to encourage timely corrective actions while considering the financial implications for the facility. Our objective is not to penalize but to maintain the highest quality of service. The penalties will be reasonable and transparent, ensuring that they provide a fair incentive for adherence to the established standards. The details of the penalty structure will be defined in a separate document or agreement, clearly specifying the nature of infractions, the corresponding penalties, and the dispute resolution process. We will work closely with all stakeholders to finalize this framework, ensuring it aligns with the facility's goals and resources while still serving as a deterrent to any significant deviations from maintenance and operation standards. By including this element, we aim to create a well-balanced operational plan that not only promotes cost-effective solutions but also enforces accountability to maintain the facility's excellence. 11. Use Restrictions/Project Requirements. a. To the extent the Project includes a workforce housing component: Page 80 of 1445 i. Development Agreement and Ground Lease will incorporate the workforce housing requirements of Chapter 58 of the City Code, provided, however, that the restrictive covenants relating to the workforce housing units shall run with the land for the entire term of the Ground Lease. ii. affordable and workforce housing units shall not exceed rent limits (by number of bedrooms in unit), as published by the Florida Housing Finance Corporation (FHFC), based upon figures provided by the U.S. Department of Housing and Urban Development (HUD). b. Prohibition on short-term rentals. c. Leasehold condominium structure, if applicable. 12. City Participation. a. City's contribution limited to providing use of the land, and City's preference is for limited or no City responsibility for any costs or expenses related to the development, financing, design, construction, operation, or maintenance of the Facility. 13. Termination Rights. a. No Developer termination for convenience following the Possession Date (i.e., after all Project regulatory approvals and financing for the Project have been obtained. and Developer takes possession of the property under the Ground Lease). b. The City will not have the right to terminate the Development Agreement for convenience. City will have the right to 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. c. In the event of a termination by Developer pursuant to Section 13.a or by the City as a result of a default by Developer, (i) the Developer shall assign to the City all right. title, and interest the Developer has 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. 14. Transfer& Assignment. a. Restrictions upon transfers of ownership interests in the Project will remain a material component of negotiations. Please indicate any desired language regarding the transfer and assignment of property interests. 15. Default. a. Developer shall be in default of the Development Agreement and Ground Lease if the Developer fails to comply with the terms thereof, including, without limitation, failure to satisfy conditions precedent to possession of the Property and Page 81 of 1445 commencement of construction prior to the outside date for commencement of construction, failure to satisfy the other Project milestones, the occurrence of any unpermitted transfers, which failures continue beyond the expiration of any applicable notice and cure period. b. City's remedies for Developer's default under the Development Agreement and Ground Lease will include, without limitation, termination of the Development Agreement and/or Ground Lease, as applicable. In connection with any such termination following the commencement of construction and prior to completion of construction, Developer shall return possession of the Property to the City and Developer shall reimburse the City for any losses or damages suffered as a result of the Developer failure to complete construction in accordance with the Development Agreement, to be further described in the Development Agreement. 16. Indemnification. a. Each of the Development Agreement and Ground Lease shall contain such indemnity provisions as the City customarily requires for projects of this nature. b. In addition, unless caused by the City's gross negligence or willful misconduct, Developer will indemnify, hold harmless, and defend the City for any claims, losses, damages, liabilities, fees, costs and expenses (including reasonable attorneys' fees, costs and expenses) in connection with any lawsuit challenging the validity of the Development Agreement or Ground Lease, any governmental approvals of the Project and/or the failure of Developer to complete construction in accordance with the Development Agreement, each at Developer's sole cost and expense and using legal counsel reasonably acceptable to the City. c. Neither the City nor the Developer shall be entitled to consequential, special, or punitive damages with respect to this Term Sheet, the Development Agreement, and/or the Ground Lease. 17. Additional Requirements. a. Compliance with Laws. Developer shall comply with all applicable laws. b. Approvals. Developer shall be responsible for obtaining approval for any applicable LDR and Comprehensive Plan amendments, as well as all required land use board approvals. Developer will pay for compliance with all provisions for required notice, including mailing notices to affected property owners and Miami Herald public hearing advertisements. c. Legal Description. Developer shall procure a survey of the Property by a licensed surveyor approved by the City. d. Reimbursement. Developer agrees to reimburse the City for, or at City's option, pay directly, on a monthly basis, the City's out of pocket transactional and professional costs and expenses associated with the due diligence, negotiation, and drafting of any Development Agreement and Ground Lease including, without limitation: fees for the City's 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 Page 82 of 1445 the City, up to $150,000, all as further described in the reimbursement agreement, to be executed between the parties. e. Art in Public Places. Developer shall make a contribution to City's AIPP trust fund, in accordance with City's AIPP Ordinance. f. Naming Rights. Naming rights for all or any portion of the Project shall require City Commission approval, which shall not be unreasonably withheld. g. Prevailing Wages. Developer shall comply with Section 31-27 of the City Code and these requirements shall be attached as an exhibit to the Development Agreement and Ground Lease. h. Local Workforce Participation Program. Developer shall cause its contractor to comply with Section 31-40 of the City Code and these requirements shall be attached as an exhibit to the Development Agreement and Ground Lease. i. Incorporation by Reference. Whether or not included or referenced in this document, all other applicable terms and conditions included in the RFP shall be incorporated into the Development Agreement and/or Ground Lease, as appropriate. Page 83 of 1445 Exhibit-A Design Page 84 of 1445 legacy - The Barclay March 1112024 Parking Study/Legacy - The Barclay Parking(option 02) ;•-'it"�t�' �,�, j - Gross Parking Area: !c:::tRateunit kgqumts: _ Parking Assumptions: • Potential for Car Stackers ( • Off site parking per Sec ��j'b' /" �___ 130-36 proximity to parking \ garage. -_- • Tandem parking - EXISTING_ B — _.2 —� It . BLDG TO I REMAIN / 4 " STAR 3 1 sFiACEsi ry NI Parking Concept Image -jC 22 SPACES - -, //I/ .v. 4 [ t g I-4,por 40 at- 0'• - ..Y if _ —• li I 6 . aypT,NorfgaillOir ,..-4 0 / 11u . 1 I I I I I L ___ ': ... PARK AVE Pape 88 of 1445 BROOKS+SCARPA ARCHITECTS INC Site Information/Legacy - The Barclay J _ . -1 213.70' S89'482TE I -4 \ !\ PARKING • \ i 9 ISTING BUILDING p ri EX WZ \ ts I , Q Z,t III$ PAWING a.. \ POOL * •\\:\'..\:\-''' I 143.40' NeY31'11'W THE BARCLAY 1940 PARK AVENUE, MIAMI BEACH Meng BITE PLAN / CONCEPTUAL DEVELOPMENT STUDY-CO-LIVING ` -/ R.I.HEISENBOTTLE ARCHITECTS,P.A. NOMH „w le,.n w ww uwu�nc.1 . . n.o..w r..I.Ar,z I. Pape 87 011445 BROOKS SCABR ARCHITECTS INC Legacy-The Barclay bPTioN 2 • Test Fit/Legacy - The Barclay Option 2 I .' Gross Floor Area: 105,146 SF ? Gross Parking Area: 8,779 SF , Gross Residential Area: Under review Gross Community&Amenity Spaces 12,160 SF �\� - / No Units: Under review L,i Average Unit Size: Under review •r No Units(Affordable @ Existing Building): 34 No Parking Spaces: 22 f 1 BDRM i 744 SF I 2 BDRM 919 SF STUDIO - I — 400 SF i STAIR f 400 SF STUDIO I / STUDIO I I i / 400 SF STUDIO I ) I ; r� 575 SF STAIR I • STUDIO , 400 SF I , !. I i 4I 1 lotk. Lii I . i VW K NVt; Plan Diagram Axonometric View Page aaof,,,s Option 2 BROOKS 4 SCARRA ARCHITECTS INC .vicy-The Barclay „wS/Legacy - The Barclay 11' „ AI Elevation from Washington Ave Birdeye from Washington Ave 0 ` I --• r.--,,*E......,==s s.•=•••• N. \ 1101- Elevation from Park Ave Birdeye from Park Ave Page 90of144 Option 2 CHU:.e=•S:A'=AAq[--'Ec-S IN, Legacy-TM Barclay Exhibit-B Development Schedule Page 91 of 1445 Development Schedule _ —- t 3 ' ' + r i 1 -, err = err .. IMO ® =, re rear MI re re 1.111111111. 111.1..111 rarrearreeri = rarer . f- Proposed schedule for the following Project milestones,indicated in number of months following the approval of the Development Agreement. a. City Commission approval (Development Agreement and Ground Lease):The lease is effective the date we pay the upfront payment which the respondent anticipates as the 1st or 2nd quarter of 2025 b. HPB design approval: We anticipate to have HPB approval by June 2024 c. Closing on Project financing:We anticipate to close on project financing when we 1st or 2nd quarter of 2025 d. Building permit We anticipate to receive the building permit before we close on financing e. Possession Date:We anticipate possession when the lease is signed and effective f. Commencement Date for construction and any phasing:We anticipate construction to begin around June 2025 g. Outside Date for Completion of Construction:We are anticipating completion of construction to occur around March 2027 h. Outside Opening Date:We anticipate to receive Certificate of Occupancy around March 2027 i. Stabilization Date:We anticipate to receive Certificate of Occupancy around June or July 2027 Page 92 of 1445 Exhibit-C SF Breakdown Page 93 of 1445 Legacy Real Estate Development,LLC Option 2 Gross Floor Area: 105,146 SF Gross Parking Area: 8,779 SF Gross Residential Area: Under review Gross Community & Amenity Spaces 12,160 SF No Units: Under review Average Unit Size: Under review No Units (Affordable @ Existing Building): 34 No Parking Spaces: 22 Unit Type Current Affordability AMI Current SF Current Unit Count Current Rent 14% Studio Workforce Housing 140% 400 SF 16 $2,530 18% Studio Extremely Low Icome(ELI) 30% 400 SF 20 $1,851 PBV• 27% Studio Market Rate MR 575 SF 30 $3,242 31% 1-Bedroom Market Rate MR 744 SF 35 $4,195 11% 2-Bedroom Market Rate MR 919 SF 12 $4,825 32% Affordable&Workforce Total Mixed Income 11,171,805 SF 113 511,171,805 68% Market Rate Requested Zoning Zonin:. GU Zornn RM-2 U Mixed Use Uses Residential Multifamily FA• 5.33 FAq 2.0 Heign, 132 Height SOFT Historic Distnct• Stone 12 Stories 5 Minimum Unit Su• 400 SF/Affordable Minimum Unit Size 400 SF/Workforce CCC Civic Zoning(Convention Center) Zoning CCC Civic Use Commercial F 2.75 Heig . 100 FT P3 Zoning Zonin. GU Use Mivec Use Page 94a if 14453/5 Heigh 75 FT Exhibit-D Proposal Comparison Page 95 of 1445 The Barclay Proposal Comparison-Exhibit-D Proposal-0 1051 2 02 4 1 Current Proposal Contribution to the City of Miami Beach Upfront GL Payment $1,500.000 GL Payment $100,000 (+1 CPI with a Floor Unit Type Current Affordability AMI current St current Unit count current Reid Participation capital events 1% of2%and roof of 24% studio Workforce Housing 140% 400 SF 16 S2,530 I _ Participation in NOI 1% 3% 18% studio Extremely Low[come(Ell) 30% 400 SF 2e I $1,851 PBV' 27% studio Market Rate MR 5755E 31k $3,242 ------ _ 31% 1-Bedroom Market Rate MR 744SF IS 54,195 Affordable 16% 11% 2-Bedroom Market Rate MR 919 SF 12 $4,825 Total Mixed Income MIMICS Sr 113 $it.171,1105 Market Rate 84% Proposal 2/23/2023J Original RFP Contribution to the City of Miami Beach:Option 1 Tab 3:Project Details and Programming.Option 1,Option 3,and Option 3. Upfront GL Paymen $300,000 GL Paymen $50,000 (+)1.5%Annually p_ption 1 Participation of Capital Even • 1% Unit mix Stabalized Rents Participation in NOI 0% #of Units Unit Type Workforce 50% 52% 16 Sudio Market Rate 50% 42% 13 1 Bedroom 6% 2 2 Bedroom 100% 31 Contribution to the City of Miami Beach:Option 2 Upfront GL Paymen $300,000 O rtion2 GI.Paymen $100,000 (+)1.5%Annually Unit mix Stabalized Rents Participation of Capital Event- 1% % #of Units Unit Type Workforce 20% Participation in NOI 1% 52% 16 Sudio Market Rate 80% 42% 13 1 Bedroom 6% 2 2 Bedroom 100% 31 Contribution to the City of Miami Beach:Option 3 Upfront GL Paymen $300,000 Option 3 GL Paymen $200,000 (+)1.5%Annually Unit mix Stabalized Rents Participation of Capital Event- 1% % #of Units Unit Type Workforce 20% Participation in NOI 1% 31% 16 Sudio Market Rate 80% 25% 13 1 Bedroom 4% 2 2 bedroom 39% 20 1 bedroom(New Construction) 100% 51 Page 96 of 1445 Original Proposal(Tab 7 Financial Proposal:Renumeration to the City) Lease Term 99 Years 99 Years 99 Years Initial Upfront Payment to $300.000 $300,000 S3OO,O00 the City Schedule of Guaranteed Rent $50,000 5100,000 $200,000 r- --+ Greater Greater Greater of base rent or 3%of of base rent or 3%of of base rent or 3%of effective gross income effective gross income effective gross income Annual 1.50% 1.50% 150% Escalations Proposed 1% 1X 1% Compensation in on any 3rd party on any 3rd party on any 3rd party connection with any transfer after the transfer after the transfer after the sale or transfer initial sale(or 10 years) initial sale(or 10 years) initial sale(or 10 years) NOI 0% 1% 1% Participation Page 97 of 1445 Exhibit-E Proforma Page 98 of 1445 1 ' 0, I 11 ;Fa iii; ilsssssi !IL i$l Al 3tinf4 isxl w s s § E3. s?- s 3 e - - $5 t 3318 3i 1B3 1 t "3 i`i33 iE x.. - xs , - --_'fl.x44YaaI =Rssu - c,. llss=; M13; �e ' s sss4s ,_ _ 33_ s 33^1s3#asass4 !lit ., 4: q- 9 d'a ;1 s-� i 3i3a 1 i 3' ii c3Ii=33, 0 1 s assss sYs __ !116__Z.A.Y==SgYYY - -4 3 �-::3iis A ii 3 fl si 1= i3Y s3 1 -___ E g a 7�j(j 1 s, 2P�E Y� ..A 1 as 1 1 ti i 3 - xs3is��ssss ;__sg� .-.m :t . s a ssss>s! 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