A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO REQUEST FOR PROPOSALS NO. 2019-098-KB, PHASE II, FOR THE DEVELOPMENT OF THE BARCLAY WORKFORCE HOUSING PROJECT AND AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS FOR A DEVELOPMENT AND GROUND LEASE AGREEMENT WITH ATLANTIC PACIFIC COMMUNITIES, LLC, WITH THE FINAL MATERIAL TERMS FOR THE PROJECT SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR AND CITY COMMISSION.

Adopt the resolution accepting the recommendation of the City Manager, pursuant to Request for Proposals No. 2019-098-KB.

On May 6, 2015, via Resolution No.2015-29017 and later amended Resolution No.2017-29758, the City Commission directed that the Barclay Plaza Apartments be developed as Workforce Housing serving persons employed in the public safety, education and municipal sectors earning to up to 140% of the Area Median Income (AMI). In addition, Resolution No. 2017-29758 accepted the recommendations made by the Land Use and Development Committee to incentivize the private development of Workforce Housing. On April 26, 2017, the City Commission adopted Resolution No. 2017-29823 accepting the recommendations made by the Finance and Citywide Projects Committee for the development of the Barclay Plaza Apartments:

A.  Income limits increased to accommodate households earning up to 140% AMI, and thereby ensure the broadest inclusion of City of Miami Beach municipal workers and educators as possible;

B.  Two-year employment tenure be the minimum threshold for eligibility of tenants served by the Project;

C. The parking lot and existing pool at the Barclay Plaza Apartments are included in the development area for the Project to maximize the number of units that can be developed for Workforce Housing purposes.

On July 27, 2017, the City Commission adopted Resolution No. 2017-29925 that accepted the recommendations of the June 16, 2017 Finance and Citywide Projects Committee providing the following parameters for the Barclay Plaza Apartments development: Projected rents to be established at 30% of the targeted AMI ranges and adjusted for unit size or currently approximately $1,569 - $1,813 for a one bedroom unit, and $1,813 - $2,380 for a two-bedroom unit in order to ensure that units remain Affordable for the targeted workforce sectors.

The City seeks to enter into a lease agreement with a developer to design, build, operate and maintain workforce housing at the Barclay Plaza property owned by the City of Miami Beach. Accordingly, the City is seeking a development partner with proven experience in the development of similar facilities or Projects, and the financial and professional qualifications to deliver high-quality, economically feasible Project(s). The City is interested in evaluating the experience and financial capacity of each developer in assuming the design-build process of the Barclay Plaza Apartments (“Barclay”) located at 1940 Park Avenue, Miami Beach, FL 33139 (the “property”).

Pursuant to the RFP, in the event that only one responsive proposal is received, the City Manager, after determination that the sole responsive proposal materially meets the requirements of the RFP, may, without an evaluation committee, recommend to the City Commission that the Administration enter into negotiations.  Therefore, after the determination that the sole proposal received was materially responsive and met the requirements of the RFP, the evaluation committee was not reconvened.  As a result, the City Manager concurs with the  determination that the sole proposal received was materially responsive and met the requirements of the RFP and recommends to the City Commission that the Administration enter into negotiation with Atlantic Pacific Communities, LLC. 

Atlantic Pacific Communities, LLC evaluated the Barclay development from various perspectives and determined that the development could be executed in a variety of innovative ways that may meet the City of Miami Beach priorities.  Accordingly, they provided the following menu of options for the City’s consideration.

Scenario1: Substantial historic rehabilitation of the Barclay (only) for workforce housing (140% AMI) with 41 units averaging 600 Square feet.  This scenario requires significant dollars from the City of Miami Beach, has no financial benefit to the City and houses fewer workforce residents.

Scenario 2: Substantial historic rehabilitation of the Barclay and new construction of a 5-story building on site for Workforce housing with 71 units averaging 599 Square feet.  This scenario requires significant dollars from the City of Miami Beach, has no financial benefit to the City and the Historic Preservation Board and state historic tax credit agency may not like new building.

Scenario 3: Substantial historic rehabilitation of the Barclay and new construction of a 5-story building on site, plus the addition of an additional site with a 7-story building, Collins Park for Workforce Housing with 143 units averaging 683 square feet.  This scenario requires award of a separate project site, some dollars from the City of Miami Beach, has no financial benefit to the City and the Historic Preservation Board and state historic tax credit agency may not like new building.

Scenario 4: Substantial historic rehabilitation of the Barclay (only) for Workforce housing utilizing a co-living concept with 25 units (78 bedrooms) averaging 815 square feet.  This scenario requires change to workforce housing ordinance and has no financial benefit to the City, however requires no dollars from the City of Miami Beach.

Scenario 5: Substantial historic rehabilitation of the Barclay and Collins Park new construction site for affordable and Workforce housing (financed with Low-Income Housing Tax Credits) with 113 units averaging 690 square feet.  This scenario requires award of a separate project site, services residents up to 80% AMI, may require additional time to obtain Low Income Housing Tax Credits, however it requires no dollars from the City of Miami Beach, and is the only plan that offers a financial benefit to the City ($750,000).

Atlantic Pacific Communities, LLC

Atlantic Pacific Communities is an affiliate of Atlantic Pacific Companies, a fourth-generation, family-owned real estate company with more than 125 years of experience in purchasing, developing, leasing and managing residential and commercial properties.  Headquartered in Miami, the firm has over $2B in real estate owned; employs over 1400 people; and has over 44,100 units under management.

The Atlantic Pacific team consists of leaders in affordable housing development, and in particular, complex projects involving true partnerships with local government.  Having developed over 11,100 affordable and mixed-income housing units, as well as community and parking facilities, they believe their team is uniquely qualified to implement this historic development that will benefit future residents, neighbors and visitors to The Barclay. 

The City has attempted multiple times to receive bids or industry input for developing workforce housing on this site. It is my understanding that the input from the industry regarding the development of this site is that its rather small size and the need to maintain the historic structure complicate development opportunities. However, I am pleased that we have at least one viable interested bidder to consider.

As previously stated, Atlantic Pacific Communities, LLC has provided a number of options for the City to consider in developing this property. Negotiations will be required to determine which of the proposed options, or combination of options, if any, will be in the best interest of the City. I do agree with Atlantic Pacific's position that negotiations will entail "a balancing act between the City’s multiple priorities of maximizing workforce units, obtaining Historic Preservation Board approval and achieving LEED Gold status." It is not my intention, however, to link this project to the Collins Park artist workforce housing project that is proceeding under a separate RFP. 

Therefore, after reviewing the technical and financial proposal submitted, I recommend that the Mayor and City Commission approve the Resolution authorizing the Administration to enter into negotiations with Atlantic Pacific Communities, LLC. to see if we can arrive at a Development and Ground Lease Agreement with them for a successful project. Any such Agreement shall be subject to the prior approval of the Mayor and City Commission at a duly scheduled City Commission meeting.  .