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Alton Beach Overlay Presentation - 6.27.25 - Items R5 A R5 B R7 BAlton Beach Bayfront Overlay & Development Agreement 1250, 1247, 1255 West Avenue & 1234 13 Street June 27, 2025 City Commission Meeting – Items R5 A, R5 B and R7 B (2nd Reading) Subject Properties 1250 West Ave Bikini Hostel 12TH ST 14TH ST 13TH STWEST AVE907 Public Private Partnerships Deliver for Communities Canopy Park 100-300 Block Lincoln Road Miami-Dade County Upland Park/Dolphin Station TOD 5th Street Pedestrian Bridge City of Miami Fire Station No. 4 City of Miami/Miami-Dade County Dulce Vita Reasons to Approve 1)Bikini Hostel will be extinguished 2)Reduced density reduces traffic and infrastructure burdens 3)Reduced impact to West Avenue street frontage and Biscayne Bay 4)Eliminates short term rental opportunity 5)Substantial economic benefits created for the City & neighborhood 6) Consistent with as-built height and FAR along West Avenue Corridor 7) Eliminates severe economic hardship unfolding for 1250 West Avenue unit owners 8) Reduced impact to views of Monad Terrace and Bay View Terrace (1228 West) 9) Bay Walk will finally be completed 10) Opportunity to create architectural landmark Existing Housing Cannot Be Sustained There is no displacement of work-force housing Notes: * Based on actual maintenance and special assessment schedules over the period ** Based on historical maintenance increases and completed reserve studies $974.62 $1,066.31 $1,497.82 $1,661.72 $1,955.58 $2,305.38 $2,363.05 $2,621.46 $2,685.86 $3,038.85 $0.00 $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 $3,500.00 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Bay Garden Manor Average Monthly Carry Cost per Unit Including Maintenance, Existing Special Assessments, and Known Upcoming Capital Improvement Projects *100.65% increase between 2021-2025 **Additional 55.39% increase projected by 2030 435 FEET Previous Current 330 FEET A setback tower that allows for more light and air Project Evolution West Avenue Context Proposed Project Overview Proposed Project Massing Live Local Act Massing The Anti-Live Local Approach Where community input is valued and local elected officials shape the outcome 1 Baywalk Segments •Original Benefit Scope: •$4.5 million monetary contribution for construction of missing Baywalk segments •Final Development Agreement Scope: •Developer is responsible for permitting and construction of all missing Baywalk segments (City’s estimated value up to $25M). 1 Mercedes-Benz Places in Miami Sales Gallery, Miami Mercedes Benz Tower Sales Gallery, Brickell Permanent Closure of Bikini Hostel Site and Transfer to City Updated City of Miami Beach Economic Benefit Analysis •Gross Value of Additional Development Rights (not including cost to acquire hostel and construct Baywalk extension): $114 million •Estimated value of Baywalk and Hostel Acquisition: $47 million •Gross Percentage of value realized by City($47 million/$114 million): 41% •Net Value of Additional Development Rights ($114 million - $47 million): $67 million •Net Percentage of value realized by City: ($67 million/$47 million): 70% City’s Target Public Benefit Range: 20%-30% of value of additional value of development rights Proposed Project Overview 200 S. Biscayne Boulevard Suite 300, Miami, FL 33131 www.brzoninglaw.com 305.374.5300 office 305.377.6222 fax Info@brzoninglaw.com Thank You 1 Hostel Closing Timeline Acquire Bikini Hostel Property, ensure tenant relocation, and demolish existing improvements I. Deadline for Closing a)Development Agreement Closing Deadline: September 15, 2025 II. Deadline for Relocation of Tenants/Client a)Under PSA seller to deliver vacant site at closing b)If not, Developer uses $1,000,000.00 of seller proceeds for compassionate relocation to facility authorized to receive popula tion under applicable law c)Development Agreement Deadline for Vacant Site: September 29, 2025 III. Deadline for Demolition a)Apply for demolition permit within 30 days of closing (by October 15, 2025) b)Commence demolition within 30 days of issuance of demolition permit c)Comply with vacant lot requirements after demolition within 30 days of demolition 1 Future Use of Hostel Site •Option 1 – Public Park: Developer builds passive public park •Option 2 – Other Public Use: City declines park and takes possession of vacant land + $2,000,000.00 •Timing: Administration has 24-month decision window to solicit input and consider possible alternative public use of Hostel Site •At closing, Declaration of Use recorded to prohibit nuisance uses (if not a park) Two (2) options – Public Park or other public use to be determined by City 1 Temporary Sales Center Mercedes-Benz Places in Miami Sales Gallery, Miami Monad Terrace Sales Gallery, Miami Beach Mercedes Benz Tower Sales Gallery, Brickell •Timing: During 24-month decision window + 30 months •All improvements retained by the City over and above park improvements •Landscaping •Parking spaces •Modular sales center structure •Improvements removed upon request by the City at Developer’s expense •Update: Temporary sales center open to the public during and may be used by neighborhood associations serving West Avenue once per month Activate vacant site with attractive sales center during development approval process 1 Baywalk Completion Plan A - Developer Constructs: •Developer obtains easements, designs Baywalk consistent with concept plans, obtains permits, and constructs baywalk segments, including replacement docks Plan B - Alternative Option 1: •Developer obtains full bid construction contracts and assigns contracts to the City with cash payment for full value of contract + 15% contingency Plan C – Alternative Option 2: •Developer pays City’s estimated costs to develop Baywalk (~$25 Million) 1 Baywalk Timing Deadline to obtain Baywalk Easements from Adjacent Condominiums: •12 months from Effective Date of Development Agreement Deadline for Baywalk Permits: •30 months from Effective Date •City Manager may extend by 6 months if applications submitted Developer is diligently pursuing permits Deadline for Construction: •18 months from issuance of permit •City Manager may extend by 6 months if permit is issued Baywalk to be completed prior to TCO/CO. •City Manager must allow TCO only (not final CO) if Baywalk Segments are under construction and all other public benefits have been delivered 1 •Development Agreement voluntarily relinquishes any right to do LLA project •Upon issuance of TCO, Developer records a covenant that permanently eliminates LLA eligibility Live Local Act Proposed Project Overview Tower Footprint Tower Footprint Covered Building Loading Dock Covered Residential and Retail Dropoff Proposed Project Overview Tower Footprint Tower Footprint As-of-Right Development Proposed Redevelopment Development Options 1 2 Units: 286 Short Term Rentals permitted Minimal setbacks required to distribute allowable floor area Short and squat arrangement leads to limited opportunities for architectural expression Units 286 Short Term Rentals Permitted Minimal setbacks required to distribute allowable floor area Short and squat arrangement leads to limited opportunities for architectural expression Floor Area & Use Breakdown As-of-Right DevelopmentOption1 Bulky, squat massing w/ minimal setbacks that obstruct views Opportunity to create true architectural landmark in respectful contextual manner Residential Units: 100-125 Average Sized Units: 2,000+ Sq Ft Family Sized Units Short Term Rental Units: Prohibited Proposed RedevelopmentOption2 Compact tower footprint allows for minimal view and shadow impacts Impact to Neighbors: Pedestal Setback Comparison As-of-Right Pedestal Building Footprint Proposed Pedestal: Tiered Setback Strategy Tier 2 Footprint Tier 1 Footprint42 feet 90 feet20 feet 130 feet Impact to Neighbors: Tower Setback Comparison Tower Footprint Internal Courtyard above pedestal Tower Footprint As-of-Right: Above 50 feet Proposed: Above 50 feet Tower Footprint 50 feet 197 feet63 feet 140 feet Impact to Neighbors: 1228 West Avenue As-of-Right Development (from West Ave)Proposed Redevelopment (from West Ave) Unsightly parking podium at the street Setback creates terraced approach to street and neighbors Impact to Neighbors: Monad Terrace As-of-Right Development (from Neighbor)Proposed Redevelopment (from Neighbor) Blocks views of neighborhood Preserves views and minimizes shadows Proposed Legislation Summary 1.Uses Residential and accessory uses only, outdoor restaurant seating prohibited 2.Intensity Floor Area bonuses allowing up to 5.75 FAR (reduced from 7.75) 3.Height Height bonus allowing up to 330 feet (reduced from 420 feet) 4.Maximum Density 75 units per acre 4.Setbacks Modifies side interior setbacks 5.Setback Encroachments Modifies allowable setback encroachments 6.Mechanical Parking Streamlined administrative approval process for mechanical parking 7.No Short-Term Rentals Requires voluntary covenant prohibiting short- term rentals Proposed Alton Beach Overlay Boundary