371-2000 RDA
RESOLUTION
371-2000
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE
MIAMI BEACH REDEVELOPMENT AGENCY, ACCEPTING THE
RECOMMENDATIONS OF THE EXECUTIVE DIRECTOR AND
THE EVALUATION COMMITTEE PERTAINING TO THE
RANKING OF THE SOLE PROPOSAL RECEIVED IN RESPONSE
TO REQUEST FOR PROPOSAL (RFP) NO. 124-99/00, FOR THE
LEASING AND MANAGEMENT OF THE RETAIL COMPONENT
OF THE ANCHOR SHOPS AND PARKING GARAGE AND
AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE SOLE PROPOSER, THE MIAMI
BEACH COMMUNITY DEVELOPMENT CORPORATION
(MBCDC), IN ASSOCIATION WITH THE FELENSTEIN KONIVER
STERN REALTY GROUP.
WHEREAS, On June 28, 2000, the RDA Board rejected the Administration's
recommendation to enter into negotiations with Codina Real Estate Management, Inc., the sole
bidder in response to Request for Proposals No. 91-99/00 for the Leasing and Management of the
Retail Component of the Anchor Shops and Parking; and
WHEREAS, on August 14, 2000, pursuant to the direction of the RDA Board, a new
Request for Proposals (RFP) was issued for the leasing and management of the retail component
of the Anchor Shops and Parking Garage; and
WHEREAS, On September 22, 2000, only one proposal was received from the Felenstein
Koniver Stem Realty Group, comprising the Miami Beach Community Development Corporation
(MBCDC), proposing to undertake the property management of the project and the Felenstein
Koniver Stem (FKS), proposing to undertake the leasing aspect of the project; and
.
WHEREAS, The Evaluation Committee convened on October 19, 2000, to review and
evaluate the sole proposal on the basis of Proposer's demonstrated prior experience in leasing and
managing retail facilities; the capability and relevant experience of key staff to be assigned to the
management of the Anchor Shops; the Proposer's fmancial capability and ability to meet insurance
requirements; the proposed Management Fee structure; and, the quality and number of the Proposer's
references; and
WHEREAS, pursuant to its evaluation of the sole proposal, the Evaluation Committee has
issued a recommendation to the Executive Director of the RDA to enter into negotiations with
MBCDC and FKS, for the leasing and management of the retail component of the Anchor Shops
and Parking Garage.
NOW, THEREFORE BE IT DULY RESOLVED BY THE CHAIRMAN AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairman
and Members of the Miami Beach Redevelopment Agency accept the recommendations of the
Executive Director and the Evaluation Committee pertaining to the ranking of the sole proposal
received in response to Request for Proposal (RFP) No. 124-99/00, for the Leasing and
Management of the Retail Component of the Anchor Shops and Parking Garage and authorize the
Administration to enter into negotiations with the Sole Proposer, Miami Beach Community
Development Corporation and the Felenstein Koniver Stem Realty Group.
PASSED AND ADOPTED this 8th day of Nov. ,2000
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CHAIRMAN
ATTEST:
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SECRETARY
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Miami Beach
Redevelopment Agency
1700 Convention Center Drive
Miami Beach, Florida 33139
Telephone: (305) 673- 7295
Fax: (305) 673- 7772
REDEVELOPMENT AGENCY MEMORANDUM NO. 00- 7;;J.....
November 8, 2000
TO:
FROM:
SUBJECT:
Chairman and Members of the Board
of the Miami Beach Redevelopment Agency
Jorge M. Gonzalez ,-.m/'
Executive Director ~.. - D
A RESOLUTION OF THE CHAIRMAN AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, ACCEPTING THE
RECOMMENDATIONS OF THE EXECUTIVE DIRECTOR AND THE
EVALUATION COMMITTEE PERTAINING TO THE RANKING OF THE
SOLE PROPOSAL RECEIVED IN RESPONSE TO REQUEST FOR
PROPOSAL (RFP) NO. 124-99/00, FOR THE LEASING AND
MANAGEMENT OF THE RETAIL COMPONENT OF THE ANCHOR
SHOPS AND PARKING GARAGE; AND, AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE SOLE
PROPOSER, THE MIAMI BEACH COMMUNITY DEVELOPMENT
CORPORATION (MBCDC), IN ASSOCIATION WITH THE FELENSTEIN
KONIVER STERN REALTY GROUP.
RECOMMENDATION
Adopt the Resolution.
ANALYSIS
On June 28, 2000, the RDA Board rejected the Administration's recommendation to enter into
negotiations with Codina Real Estate Management, Inc., the sole bidder in response to Request for
Proposals No. 91-99/00 for the Leasing and Management of the Retail Component of the Anchor
Shops and Parking Garage. The decision came as a result of only one response to the RFP, even
though more than 254 notices were sent out to local and national property management/leasing
firms, identified through organizations including but not limited to, the Miami Beach Chamber
Commerce, the Building Owners and Managers Association (BOMA) and the Regional Council of
Shopping Centers (RCSC). The Board directed the Administration to reissue the RFP and undertake
necessary steps to ensure a greater response. A new RFP was issued on August 14,2000.
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Agenda Item 3 B
Date II-g,-DO
On September 11, an amendment was sent out responding to certain questions submitted by
recipients of the RFP and extending the proposal deadline from September 15 to September 22,
2000. Despite the Administration's efforts to obtain a greater response, only one proposal was
received in the second round as well. The one proposal was received from The Felenstein Koniver
Stem Realty Group, comprising the Miami Beach Community Development Corporation (MBCDC),
proposing to undertake the property management aspect and the Felenstein Koniver Stem (FKS),
proposing to undertake the leasing aspect. It is believed that since the retail space is now fully leased,
most fIrms were not interested in responding to just undertake property management responsibilities.
In the interest of being consistent with the terms of this RFP as well as with the prior RFP process,
an Evaluation Committee appointed by the Executive Director, convened on October 19 to hear a
presentation by the sole bidder and make a recommendation. The Committee was comprised of
Michael Comras of Com real, Inc., John Thacker of the Loews Miami Beach Hotel, and Christina
Cuervo, Alexdandra Rolandelli and Kent Bonde of the RDA. Prior to commencement of the
meeting, it was determined that Michael Comras and Christina Cuervo had conflicts with the
proposer, and subsequently withdrew from the Committee.
The Committee evaluated the proposal on the basis of the Proposer's demonstrated prior experience
in leasing and managing retail facilities; the capability and relevant experience of key staff to be
assigned to the management of the Anchor Shops; the Proposer's financial capability and ability to
meet insurance requirements; the proposed Management Fee structure; and, the quality and number
of the Proposer's references.
The strengths ofthe proposal team lie in the extensive local and national retail leasing experience
of FKS coupled with the commercial property management experience of MBCDC, Most
importantly, the team has local presence, which in turn should guarantee greater responsiveness to
the needs ofthe tenants as well as ensure that the retail space is maintained in good condition. As
indicated previously, since the Anchor Shops are fully leased, the primary focus of the proposer
would be to develop a comprehensive management plan to include but not be limited to, collecting
and remitting lease revenues, enforcing lease terms, coordinating tenant improvements and/or build-
outs, conducting daily site visits to identify maintenance concerns, overseeing and arranging for
maintenance personnel or appropriate vendors to address maintenance issues, coordinating hurricane
plans with tenants, and, developing and maintaining a system of accounting, bookkeeping and
reporting in accordance with the RDAlCity's requirements.
The Committee's only concern was with the limited experience of the Property Management team
in managing retail space outside of the City of Miami Beach. However, this is not expected to pose
a signifIcant impediment, since the size of the property they do manage is comparable to that of the
Anchor Shops.
The proposed Management Fee of $37,500 per year, or $3,125 per month, was deemed reasonable,
considering it would be more costly for the RDA to engage an in-house person with less resources
to undertake the same responsibilities. On this latter point, RDA staff, has in effect, been managing
and leasing the Anchor Shops since the termination of the Retail Space Master Lease Agreement
with Loews, and has successfully leased the remaining vacant space. However, it should be noted
that the RDA does not have the manpower or resources to effectively continue managing and/or
leasing the property, In addition, the Annual Independent Audit of the City and the RDA,
recommended that a "proper and qualified" management company take over management of the
Anchor Shops.
The proposal also calls for a leasing commission of 6 percent for any leases procured by FKS, upon
and subsequent to execution of a Management Agreement. The Committee also deemed this as
reasonable, especially considering that the space in the Anchor is already leased.
The Committee voted to recommend pursuing negotiations with MBCDC and FKS.
Since the contract term is negotiable, it is anticipated that the initial term will be for one year, to
coincide with the remaining term of Quik Park's contract for managing and operating the Anchor
Garage. At that point, there will be a provision for renewal of the LeasinglProperty Manager's
contract, provided that the Redevelopment Agency is satisfied with the services provided during the
initial term of the contract.
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