LTC 027-2020 Update on Negotiations Pursuant to ITN 2019-138-KB for a Hydroponic Farming Partnership MIAMIBEACH
City of Miami Beach,1700 Convention Center Drive, Miami Beach,Florida 33139,www.miamibeachfl.gov
OFFICE OF THE CITY MANAGER
027-2020
LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members f the City r •mmission
FROM: Jimmy L. Morales, City Manager !
DATE: January 14, 2020
SUBJECT: UPDATE ON NEGOTIATIONS PURSUANT TO ITN 2019-138-KB FOR A
HYDROPONIC FARMING PARTNERSHIP
The purpose of this LTC is to update the Mayor and City Commission on the status of the above
referenced ITN. At this time, the City Manager believes it is in the City's best interest to
discontinue negotiations with the short-listed vendor until such time as the City develops its long-
term plans for redevelopment of the West Lots.
BACKGROUND
In May 2018, the City Commission referred to the Sustainability and Resiliency Committee(SRC)
a discussion about the possibility of introducing a hydroponic farm in North Beach. The referral
proposed the concept as an incubation pilot, as a low-intensity activation of underutilized land and
a source of fresh food for residents. In June 2018, Dover Kohl & Partners presented the "West
Lots Plan" to the City Commission, a conceptual design plan for each of the eight West Lots,
which specifically included a hydroponic farm as an eco-friendly community activity. On February
13, 2019, following the recommendation of the SRC, the City Commission authorized issuance of
an Invitation to Negotiate(ITN)seeking proposals from interested parties to develop a hydroponic
farm on city-owned land. Given City staff's lack of technical experience with the agricultural
hydroponics industry and to allow maximum flexibility for respondents, the City provided general
specifications in the solicitation that welcomed suggestions from experienced hydroponic farmers
as to what concepts would best work with the City's available spaces and climate.
Following ITN issuance on February 14, 2019, three proposals were received on April 1, 2019.
The City Manager recommended that the City Commission authorize contract negotiations with
the two top-ranked proposers, Freight Farms, Inc. and Energy Cost Solutions Group, LLC
("ECSG").
On June 5, 2019, pursuant to Resolution No. 2019-30860, the Mayor and City Commission
authorized the Administration to enter simultaneous negotiations with the two top-ranked
proposers. The resolution further specified that final selection of the recommended proposer and
the negotiated contract terms be subject to prior approval of the Mayor and City Commission.
Given the disparity in proposals submitted and the undefined nature of the project scope, the City
Commission directed negotiation of terms including site location and development, plant
materials, community involvement, and financial considerations.
Letter to Commission—Update on Hydroponic Farming Partnership.
January 14, 2020
Page 2 of 2
However, on or about July 12, 2019, Freight Farms notified the City that it was no longer interested
in pursuing negotiations for the project and cited to the upfront capital costs as the reasoning for
withdrawing from the process. Accordingly, staff pursued negotiations with ECSG's principal.
NEGOTIATIONS
ECSG's principal, Jason Biondi is a North Beach resident. Mr. Biondi conveyed interest in bringing
value to the community and he demonstrated a sensitivity to the concerns expressed by
stakeholders. For example, when ECSG conducted an informational neighbor outreach session
at the initial proposed site last August, members of the community objected to the proposed
location adjacent to the Skate Park. Site selection proved difficult, but Mr. Biondi willingly modified
his plans each time upon request. Ultimately, the City chose a site location on a small tract of City
land located at the northern City limits at 226 87th Terrace.
While originally intended to activate vacant land for the community at little cost to the City, the
concept lacked incentive for a private operator to participate without the promise of financial
return. At several in-person meetings with staff from the Economic Development and
Procurement Departments throughout the remainder of the year, ECSG presented multiple design
proposals of increasing commercial activity. In order to obtain private funding for an agricultural
operation that would provide public benefits at little cost to the City, ECSG sought approval for a
commercial/restaurant component and a longer lease term than the City desired. The proposed
programming veered from its original small scale and temporary concept and posed the risk of
impacting the residential neighborhood immediately adjacent to the West Lots. Given the
uncertainty of future plans for the West Lots, the City was unwilling to enter into a lease longer
than three years, which would make it more difficult for ECSG to secure funding.
On January 14, 2020, staff met with ECSG to discuss suspending negotiations while the City
works with CBRE, Inc. to identify a holistic and strategic development strategy for the West Lots,
in line with the City's goals, the community's vision, and Miami Beach quality of life. The
Administration is grateful for the time, energy, and professionalism that ECSG offered throughout
the process.
It is to be noted that while this project was unable to be launched, there are several community
gardens exist throughout the city including; "South Beach Victory Garden" located at 2nd Street
and Collins Avenue, the "Mid Beach Community Garden" located at 4401 Pinetree Drive and the
"North Beach Community Garden" located on 73rd Street and Dickens Avenue. While these
gardens are run by community groups, city staff has been supportive of their efforts and over time
have provided resources such as compost, sheds and raised planter beds. In additions, a new
community garden is slated to be included in the Flamingo Park Master Plan currently being
developed by the City.
The Administration looks forward to creating holistic approach and action plan towards building a
vibrant, resilient and connected community at the West Lots.
F:\INFO\$ALL\ECONOMIC DEVELOPMENT DEPARTMENT\City Develpment Projects(P3)\West Lots\Hydroponic Farm ITN (2019)1TC Update on
Hydroponic ITN Negotiations.docx