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C2F-Issue RFP Public-Private Development In Miami Beach On North Lincoln LaneCOMMISSION ITEM SUMMARY Condensed Title: Request for approval to issue a Request for Proposals (RFP) from qualified developers for a Public-Private development in Miami Beach on North Lincoln Lane, between Alton Road and Meridian Avenue, including city-owned Parking Lot #25 on 1 ih Street and Lenox Avenue, Parking Lot #26 on North Lincoln Lane, between Lenox Avenue and Michigan Avenue, and Parking Lot #27 on North Lincoln Lane between Jefferson Avenue and Meridian Avenue. Ke Intended Outcome Su ported: Supporting Data Surveys, Environmental Scan, etc. : Issue: I Shall the Mayor and City Commission approve the Issuance of the RFP? Item Summary/Recommendation: In the past 12 months, several owners of properties on and around Lincoln Road have approached the Administration with various proposals to improve their properties facing North Lincoln Lane. Many of the proposals include a variation of City participation. At the October 26, 2011 Land Use and Development Committee meeting, the Committee recommended that the City Commission consider the issuance of a Request for Proposals (RFP) for a public/private development on North Lincoln Lane. The City has identified certain City-owned parcels for possible public-private development opportunities. Proposers may consider privately owned properties on North Lincoln Lane, and/or one or more of the following sites to include as part of the proposed development. (See attached map): A. Parking Lot #25 located on the South-West corner of 17th Street and Lenox Avenue. 37,500 square feet and currently with 86 parking spaces. B. Parking Lot #26 located on North Lincoln Lane between Lenox Avenue and Michigan Avenue. 41 ,600 square feet and currently with 107 parking spaces C. Parking Lot #27 located on North Lincoln Lane between Jefferson Avenue and Meridian Avenue. 54,000 square feet and currently with 144 parking spaces. The City will seek development teams which have a proven experience in comparable developments, and have the financial resources and professional expertise to deliver the highest quality and economically feasible project(s). Recommendation: Approve the issuance of the RFP. Advisory Board Recommendation: I N/A Financial Information: Source of Amount Account Funds: 1 N/A OBPI Total Financial Impact Summary: N/A MIAMI BEACH AGENDA ITEM---- DATE ___ _ 59 City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the Cit Commission FROM: Jorge M. Gonzalez, City Manage DATE: December 14, 2011 SUBJECT: REQUEST FOR APPROVAL ISSUE A REQUEST FOR PROPOSALS (RFP) FROM QUALIFIED DEVELOPERS FOR A PUBLIC-PRIVATE DEVELOPMENT IN MIAMI BEACH ON NORTH LINCOLN LANE, BETWEEN ALTON ROAD AND MERIDIAN AVENUE, INCLUDING CITY-OWNED PARKING LOT #25 ON 17TH STREET AND LENOX AVENUE, PARKING LOT #26 ON NORTH LINCOLN LANE, BETWEEN LENOX AVENUE AND MICHIGAN AVENUE, AND PARKING LOT #27 ON NORTH LINCOLN LANE BETWEEN JEFFERSON AVENUE AND MERIDIAN AVENUE. ADMINISTRATION RECOMMENDATION Approve issuance of the Request for Proposals. BACKGROUND At the July 16, 1997 City Commission meeting, the City Commission approved the issuance of the $21 Million Parking Revenue Bonds, which included funding for the following parking projects: 1. acquisition of land for, and construction of, a new parking garage in the Collins Park I Cultural Center area, 2. acquisition of land for a surface parking lot and/or new parking garage in the area between Lincoln Road and 18th Street, between Collins Avenue and Washington Avenue, 3. expansion, renovation, improvement, and/or repair of various parking garages in the City, 4. renovation, improvement, and/or repair of various surface parking lots in the City; and 5. replacement of parking meter mechanisms with electronic meters. Over the years, some of the above referenced parking projects have been completed. Currently, the City owns several surface parking lots through which a private-public partnership can improve and optimize the use of the City land to provide not only needed parking spaces, but generate economic development that will further benefit the City. In the past 12 months, several owners of properties on and around Lincoln Road have approached the Administration with various proposals to improve their properties facing North Lincoln Lane. Many of the proposals include a variation of City participation. 60 North Lincoln Lane RFP Memo December 14, 2011 Page 2of4 At the May 2011 City Commission retreat, the City Commission directed the Administration to table any further work on possible development of North Lincoln Lane, and instead place the priority on the expansion of the Miami Beach Convention Center. However, in the last two months, the same property owners as well as additional commercial property owners have again reached out to the Administration with various development proposals to improve certain parts of North Lincoln Lane that would include City-owned surface parking lots. At the October 26, 2011 Land Use and Development Committee meeting, the Committee recommended that the City Commission consider the issuance of a Request for Proposals (RFP) for a public/private development on North Lincoln Lane. ANALYSIS The Lincoln Road area continues to be a growing concentration of retail, restaurant, and business activity in the City. As the demand for space on Lincoln Road continues to increase, lease rates also have increased significantly, resulting in some retailers potentially being "priced-out" of Lincoln Road. This dynamic has lead several property owners to propose opportunities to accommodate potentially displaced retailers on a newly developed North Lincoln Lane location, at competitive lease rates. The City has identified certain City-owned parcels for possible public-private development opportunities. Proposers may consider privately owned properties on North Lincoln Lane, and/or one or more of the following sites to include as part of the proposed development. (See attached map): A. Parking Lot #25 located on the South-West corner of 1 th Street and Lenox Avenue. 37,500 square feet and currently with 86 parking spaces. B. Parking Lot #26 located on North Lincoln Lane between Lenox Avenue and Michigan Avenue. 41,600 square feet and currently with 107 parking spaces C. Parking Lot #27 located on North Lincoln Lane between Jefferson Avenue and Meridian Avenue. 54,000 square feet and currently with 144 parking spaces. The City will seek development teams which have a proven experience in comparable developments, and have the financial resources and professional expertise to deliver the highest quality and economically feasible project(s). Evaluation and Selection Process The procedure for response, evaluation and selection will be as follows: 1. The RFP will be issued after City Commission approval is received. 2. A pre-qualification proposals submission meeting with prospective proposers will be conducted. 3. All timely received proposals will be opened and listed. 4. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each proposal in accordance with the requirements set forth in the RFP. If further information 61 North Lincoln Lane RFP Memo December 14, 2011 Page 3of3 is desired, proposers may be requested to make additional written submissions or oral presentations to the Evaluation Committee. 5. The Evaluation Committee will recommend to the City Manager the proposer or proposers that it deems to be the best candidate(s) by using the following evaluation criteria: 20 20 6. The City Manager shall recommend to the City Commission the proposals which he deems to be in the best interest of the City. 7. The City Commission shall consider the City Manager's recommendation and, if appropriate, approve such recommendation. The City Commission may also, at its option, reject the City Manager's recommendation and select another proposal or proposals, which it deems to be in the best interest of the City; or it may also reject all proposals. 8. Negotiations between the City and the selected proposer(s) will take place to arrive at an agreement which, if successful, will culminate with the submission of a Letter of lntent(s) (LOI or LOis) between the City and the successful proposer or proposers. The LOI(s) will be presented to the City Commission for approval/disapproval. 9. In the event of approval of an LOI (or LOis) by the City Commission, the Administration will request authorization to enter into negotiations with the selected development team (or development teams) on this specific agreement(s) related to the development of the team's (teams') project(s), based on the substantive terms of the LOI (LOis); which agreements may include, without limitation, a development agreement and ground lease. 10. The final proposed agreement(s) will be presented to the City Commission for approval. 11. If the agreement(s) are approved by the City Commission, the Mayor and City Clerk shall execute the contract(s), after the developer (or developers) has (or have) done so. CONCLUSION The Administration recommends that the Mayor and the City Commission authorize the issuance of a Request for Proposals from qualified development teams for a public-private development on North Lincoln Lane, between Alton Road and Meridian Avenue in Miami Beach. 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