R9K-Discuss Proposal To Convert Collins Park Garage Project To A Ground Lease -R9 - New Business and Gommission Requests
RgK Discussion Regarding Unsolicited Proposal To Convert Collins Park Garage Project To
A Ground Lease And Cooperative Development.
(Sponsored by Commissioner Michael Grieco)
Agenda ltem R4 KDate f _2_151068
Gadinsky
REAL ESTATE LLCJ
August 7,2015
Mr. Jimmy L. Morales
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, FL 33139
Dear Mr. Morales:
Please accept this letter as our formal proposal to negotiate a development and
ground lease agreement with the City of Miami Beach for the completion of the
proposed Collins Park Garage. lt is our understanding that the prolect is at risk of
cancellation primarily due to the construction costs of the proposed design. As
locals, we know the great efforts the City has gone through, for over ten years, to
assemble and entitle this property in an effort to provide much needed parking to
the public and neighboring businesses and institutions. After reviewing
numerous ground leases and development agreements between the City of
Miami Beach and local developers, we propose to develop the project, provide
the public amenity to the residents of Miami Beach, reimburse the City the $1.8
Million spent to date on the design and entitlement, and dramatically reduce the
City's future financial contribution.
As with The Lincoln Garage, Goldman's Ballet Valet Garage, the new Sunset
Harbor Garage, and others, the City has a long and successful history of working
with partners to develop much needed parking garage facilities strategically
located throughout the city. We propose to enter into a similar arrangement with
the City of Miami Beach, to bring private funding to finance the vast majority of
the project, deliver it as designed, include some additional ground floor retail, and
ultimately own and operate the facility under a long term Ground Lease
Agreement. ln addition to the public amenity, this solution would provide annual
ground lease payments, percentage rent payments over iime and ad vaiorem tax
payments to the City. Due to the advanced level of design work that has been
completed to date, we are confident we can execute this plan quickly, break
ground in 2016, and deliver the completed project in 2018.
We propose to provide the City with all 466 parking spaces currently included in
the design, a completion date in 2018, and to finance the remainder of the design
phase and the majority of the construction costs. We would ask for a
contribution from the City for certain public and municipal improvements - we
estimate the City's contribution to be $6.5 Million, which would allow for a
1680 Michigan Ave., Ste. 1001, Miami Beach, FL 33139 . 786.276.2387'seth@gadinsky.com .
www.gadinskyrealestate.com
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reallocation of $18.5 Million to alternative citywide parking and transportation
initiatives ($1.AfU would be repaid upon closing and then $6.5M would be
contributed during construction). We recognize that it is important to the City to
maintain the integrity of the world class design proposed by Zaha Hadid
Architects and we would continue to work with her throughout the remainder of
the design and construction phases.
We thank you for your consideration in the matter and look fonruard to discussing
how to proceed with such an arrangement.
Sincerely,
Seth Gadinsky Glenn Boyer
Seth Gadinsky
Gadinsky Real Estate, LLC
Glenn Boyer
City Middle, LLC
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