R2A-Issue RFQ Enhancement Of Miami Beach Convention Center Campus-DistrictCOMMISSION ITEM SUMMARY
Condensed Title:
Request For Approval To Issue A Request For Qualifications (RFQ) For The Development Of The Miami Beach Convention Center
District.
Key Intended Outcome Supported:
Improve the Convention Center Facility
Supporting Data (Surveys, Environmental Scan, etc.): The 2009 Community Satisfaction Survey indicated that residents
attended events at the convention center 2. 7 times per year.
Issue:
I Shall the Mayor and City Commission approve to issue the RFQ?
Item Summary/Recommendation:
At its October 19, 2011 meeting, (pursuant to resolution No. 2011-27778) the City Commission authorized the Mayor
and the City Clerk to execute an agreement between the City and Strategic Advisory Group (SAG) to assist the City
with the expansion and enhancement of the Miami Beach Convention Center campus district.
During the May 20-21, 2011 City Commission Retreat, the Commission discussed and agreed to look at broader
development opportunities in the area beyond the Convention Center concept plan, and expressed a desire to find
ways to address the impact on traffic, mobility and to the surrounding neighborhoods, as well as maximizing green
space. Based on the potential development opportunities of the area immediately surrounding the Convention Center
(eg. approximately 6.2 million sq.ft. of FAR), and the potential expansion project cost, it was again determined that it
would be beneficial to develop the most effective strategy to solicit the right mixed-use development team for the
project, with a goal of ensuring the highest level of private-sector participation, and the best proposed design for the
expansion project to address our Convention Center needs.
As part of SAG's scope of services, SAG is to prepare a Request for Qualifications (RFQ) to select the development
team for the project. The RFQ is the first step in an effort to create funding options for convention center improvements
through a mixed-use master development of City-owned properties surrounding the convention center that would
create new revenues to the City. These incremental revenues could be used to fund potential convention center
improvements and/or provide operating funds.
Advisory Board Recommendation:
Financial Information:
Source of Funds:
I I
OBPI ~~~·~----------~------------+---------~
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Si n-Offs:
:\AGENDA\2012\1-11-12\MBCC-RFQ Summary.doc
MIAMI BEACH
191
JMG
AGENDA ITEM R~l\
DATE J-II-12-
~ MIAMI BEACH "'="'"
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 City mmission
FROM:
DATE:
SUBJECT:
Jorge M. Gonzalez, City Manager\\
January 11, 2012 ()
REQUEST FOR APPROVAL TO ISSUE A REQUEST FOR QUALIFICATIONS
(RFQ) FROM QUALIFIED DEVELOPERS FOR A PUBLIC-PRIVATE MIXED-USE
DEVELOPMENT IN MIAMI BEACH FOR THE ENHANCEMENT OF THE MIAMI
BEACH CONVENTION CENTER CAMPUS/DISTRICT, INCLUDING THE
EXPANSION OF THE MIAMI BEACH CONVENTION CENTER AND
DEVELOPMENT OF A CONVENTION CENTER HOTEL
ADMINISTRATION RECOMMENDATION
Approve the issuance of the Request for Qualifications (RFQ).
BACKGROUND
In October 2001, Convention Sports & Leisure (CSL) was commissioned by the Greater Miami
Convention and Visitors Bureau (GMCVB), in partnership with the City, to prepare a report that
concluded that the Miami Beach Convention Center (MBCC) was best positioned to serve the greater
Miami region given its geographic draw. However, the report also recommended that improvements,
including a multi-purpose general assembly/banquet hall, should be made to increase the
marketability of the Convention Center. In 2004, the Building Better Communities General Obligation
Bonds Program was approved Countywide, and included a total of $55 million for Convention Center
enhancement and expansion.
At the April 11, 2007 City Commission Meeting, the City Commission passed a motion supporting a
proposed MBCC expansion (to include a ballroom, retrofit of space to accommodate new meeting
rooms, and renovations to the northwest ballroom to create a "junior ballroom"), subject to the County
funding all costs associated with the project, and the County managing the renovations/ construction
process.
In April 2008, the City and County, in conjunction with interested Stakeholders, developed a long-term
vision and Master Plan for the MBCC. As part of this new Master Plan, CSL prepared a new study
that identified the following needs for the MBCC to be competitive: Multi-Purpose/Ballroom Space;
additional Meeting Space; Unique Features (e.g. outdoor terrace); the Development of a Convention
Center District; and the inclusion of an adjacent/nearby Convention Center Headquarters Hotel. A
competitive process was issued for the selection of the Master Plan architect to create a vision for the
implementation of those needs, and others that might be identified. Arquitectonica was competitively
selected as the Master Plan architect.
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Arquitectonica developed a preliminary Master Plan which included key features, including a
reorientation of the Convention Center entrance, additional exhibit space, ballrooms, meeting rooms,
and a 1 ,500 space parking garage. The master plan also identified potential locations for an adjacent
convention center hotel. Arquitectonica's Master Plan was designed within the existing zoning
restrictions for the expansion area (as they had been directed to proceed). The result was a design
that addressed the issues and needs identified by CSL and the Stakeholders, but that involved a
substantial level of massing on the available space.
On February 24, 2011, the Finance and Citywide Projects (FCWP) Committee met to consider the
Master Plan Report, including the option of a Convention Center hotel. The FCWP Committee
recommended to conceptually endorse the renovation and expansion of the MBCC to address the
needs identified in CSL's report, including the development of an adjacent Convention Center Hotel.
In addition, the FCWP Committee supported the engagement of an outside expert/firm to assist the
City with conceiving a broader development concept that would maximize the City's resources and
assets, and attract private sector investment.
On March 9, 2011, consistent with the FCWP Committee's recommendations, the Mayor and City
Commission passed and adopted Resolution No. 2011-27620, which endorsed and supported, in
concept, the project to renovate and expand the Miami Beach Convention Center, including an
adjacent Convention Center hotel, but did not approve the proposed master plan concept design. The -
Commission also ratified the FCWP Committee's recommendation to secure any necessary expertise
required to assist with the project, and authorized the City Manager to issue a Request for Proposals
(RFP) to secure those services.
During the May 20-21, 2011 City Commission Retreat, the Commission further discussed and agreed
to look at broader development opportunities in the area beyond the Convention Center concept plan,
and expressed a desire to find ways to address the impact on traffic, mobility and to the surrounding
neighborhoods. There was also a desire to maintain sensitivity for the historic district, while
maximizing green space. Based on the potential development opportunities (eg. approximately 6.2
million sq.ft. of FAR), and the potential expansion project cost, it was again determined that
assistance from a firm with experience and expertise in the development and implementation of
similar projects (including similar Private/Public Partnerships, PPPs) would be beneficial in developing
the most effective strategy to solicit the right mixed-use development team for the project, with a goal
of ensuring the highest level of private-sector participation, and the best proposed design for the
expansion project to address our Convention Center needs. On May 24, 2011, RFP No. 33-10/11 was
issued. After an evaluation process, Strategic Advisory Group (SAG) was deemed the most qualified
firm to assist the City with this process, based on their experience with similar projects in Florida and
throughout the Country in Convention Center and Convention Center Hotel Development, public
private partnerships, capital structuring, tax-exempt asset financing, tax revenue projection and bond
offering due diligence. SAG has a broad range of experience in overall transaction management with
private sector investment, identifying potential private partners, negotiating partnerships, executing
transactions, monitoring private partner progress, and communicating the project's costs and benefits
(economic impact, jobs, taxes, etc.). SAG is to serve as an extension of staff in the project
development process.
On September 14, 2011, via Resolution No. 2011-27738, the City Commission authorized the City
Manager to negotiate with Strategic Advisory Group and, subsequently,on October 19, 2011, via
Resolution No. 2011-27778, the City Commission authorized the Mayor and City Clerk to enter into an
agreement between the City and SAG for services relative to the expansion and enhancement of the
MBCC District, pursuant to Request for Proposals (RFP) No 33-10/11 in an amount not to exceed
$175,000, including all reimbursable expenses.
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REQUEST FOR QUALIFICATIONS (RFQ)
As previously reported, SAG's scope of services includes drafting a Request for Qualifications (RFQ)
from developers for the master development of the MBCC District. The RFQ is the first step in an
effort to create funding options for convention center improvements through a mixed-use master
development of City-owned properties surrounding the convention center that would create new
revenues to the City. These incremental revenues could be used to fund potential convention center
improvements and/or provide operating funds.
As part of SAG's effort to have a better understanding of the scope of the project, SAG met with City
staff, toured the convention center and surrounding area, and reviewed the "Master Plan" and other
related information. Also, SAG, as the City's primary advisor, has met with members of the hotel
industry and convention bureau, as well as other stakeholders, to further understand their concerns
and other related project issues. Through these recent industry discussions, it was determined that
the Center needs, at a minimum, a "Class A" renovation, a new ballroom and a new Convention
Center hotel to make the Center competitive and attract the high-end conventions to the region.
Referendum Requirement
The expanded development site, referred to as the MBCC District, is approximately 52 acres that
encompasses the convention center facility, adjacent surface parking lots, City Hall, a parking garage ·
(1ih Street), and other related city offices (555 17 Street/1701 Meridian Building). The combined area
allows for up to approximately 6.2 million square feet of FAR. All developers and other interested
parties will be informed that any sale, exchange, conveyance or lease of ten(1 0) years or longer of
any or all the City-owned properties in the MBCC District requires approval by a majority vote of
residents in a City-wide referendum, pursuant to Section 1.03(b)(2) of the Miami Beach City Charter.
City Priorities
In addition to the improvement and expansion of the MBCC, the RFQ also will highlight additional City
priorities for the master development, including increased outdoor public space, a walkable district
providing connectivity between the Convention Center and Lincoln Road and the City's historical and
cultural district, iconic architecture in keeping with the City's history of significant design, sensitivity of
massing adjacent to existing residential neighborhoods, and optimal economic and community
benefits to the City.
RFQ Submittal Requirements
RFQ Proposers can be master developers or development teams. The Proposers will be required to
submit a package of material, including information about their teams, key personnel, company
history, financial capabilities, relevant development experience and references. The complete
response requirements will be detailed in the RFQ document.
RFQ Evaluation Process
In preparation for the RFQ process, SAG met with approximately 30 interested local, national and
international development, hotel, and construction companies. The RFQ will focus on Proposers that
will act as the master developer, and less so on construction or design companies, unless these
companies are acting as financial partners.
Key to the evaluation of the RFQ responses will be the firm's relevant experience in undertaking
similar master development projects, and its financial strength to carry out a development of the
magnitude contemplated. The Proposers' relevant experience should include large mixed-use
developments with a combination of retail, hotel, convention center, entertainment, residential and
other commercial uses. Proposers will be requested to summarize at least five development projects
of comparable size and scope as the MBCC District proposed development, the role it played in each
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of the representative developments, and the professional experience of each key personnel that will
be involved with the proposed MBCC project. Firms can work together to submit joint qualifications to
satisfy the requirements for relevant experience.
Each Proposer also must provide information that demonstrates financial capability to take on the
proposed MBCC development. Proposers will be required to summarize its broad approach to
financing the various components of the proposed development. The RFQ response should include
a summary of the Proposer's role in the capitalization of the project, relationships with capital sources,
and the Proposer's commitment to provide all or a portion of the financing. In addition, the Proposers
must describe any requested public financing participation.
An Evaluation Committee appointed by the City Manager will evaluate Proposers based on relevant
experience and financial strength, and recommend to the City Manager a group of shortlisted
Proposers that will proceed to the next phase of evaluation.
Criteria for Relevant Experience will include experience with the following types of developments:
• Convention Center
• Hotel
• Retail/Restaurant
• Entertainment
• Other Commercial or Residential
• Public Spaces I LEED Sustainable Development
Criteria for financial strength will include the following:
• Approach to Project Financing
• Relationships with Capital Sources
• Demonstrated ability to finance similar projects
• Years in business
The City Manager will request the Commission's approval of the recommended shortlisted Proposers,
and request authorization to negotiate Letters of Intent (LOis) with some or all of the shortlisted
Proposers. Once given Commission authorization, the Administration, with SAG's assistance, will
negotiate Letters of Intent (LOis) with each of the accepted shortlisted Proposers. These terms will
later be presented to the City Commission for its consideration and direction.
The shortlisted Proposers, as part of the next stage of the evaluation process, will be required to
prepare a detailed proposal for the MBCC District. The detailed proposal will include a master plan for
the site, project renderings, a breakdown of proposed uses and square footages of each use including
public open spaces, renovation and expansion plan for the convention center facility, proposal for the
convention center hotel, a phasing and absorption plan, the financing plan, any request for public
assistance, a summary of projected new City revenues to be generated by the proposed
development, and additional information outlined in the RFQ document. These also will be some of
the terms that will be negotiated in the LOis.
This phase, as part of the preparation of the detailed proposal, will include community involvement to
gain input on local needs and concerns. To initiate the public outreach, the City will arrange a
community workshop which will be professionally facilitated by a third party. Proposers will be
encouraged to hold additional, subsequent community meetings if they deem it helpful in the
preparation of their proposal.
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The Administration will provide the City Commission additional details regarding the next phase of
evaluation, such as the selection schedule and evaluation criteria, when the Commission considers
approval of the recommended shortlisted Proposers.
CONCLUSION
The Administration recommends that the Mayor and City Commission authorize the Administration to
issue a Request for Qualifications (RFQ) from qualified developers for a public-private mixed-use
development in Miami Beach for the enhancement of the Miami Beach Convention Center
Campus/District, including the expansion of the Miami Beach Convention Center and development of
a Convention Center hotel.
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