|TO: ||Finance and Economic Resiliency Committee Members|
|FROM:||Jimmy L. Morales, City Manager|
|DATE: ||May 22, 2020|
|SUBJECT:||DISCUSSION REGARDING NEGOTIATIONS PURSUANT TO ITN 2019-099-KB COLLINS PARK ARTIST WORKFORCE HOUSING PROJECT |
In July 2016, the City Commission directed the Administration to pursue a workforce and artist housing facility on the City-owned lots east of Liberty Avenue behind the library. Immediately to the west of the project site is the new Collins Park Parking Garage, and next door, the City-owned building occupied by the Miami City Ballet.
In January 2019, the City issued ITN 2019-099-KB and received two proposals in response. Following withdrawal from the bidding process by one of the proposers, Atlantic Pacific Communities, LLC, the City Commission directed the Administration to negotiate with the sole remaining proposer, Servitas, LLC.
On March 22, the City Commission referred to this committee a discussion on the status of negotiations.
In January, the Administration met with representatives of Servitas and were joined by the City's real estate consultant, CBRE, Inc. Discussion of the Servitas proposal covered important issues such as current land value, zoning considerations, and the extent to which the proposed programming and land use are consistent with the City's objectives.
Following the meeting, CBRE provided the City with a summary report of the proposed transaction, which recommended contract award to Servitas, and also highlighted outstanding questions and other elements requiring further discussion. Excerpts of the summary transaction report are included as Attachment A. Another meeting with the proposer was scheduled for March 13, but ultimately cancelled due to the City Commission’s emergency meeting on the same date.
In the interim, development projects have largely been put on hold while the Administration focused its efforts on the City’s pandemic response. Now that commercial activity is resuming, the Administration has confirmed the developer’s continued interest in the project. In fact, Servitas believes that pursuing project development now provides an important market signal that will benefit the local economy. Accordingly, the City, with the assistance of CBRE, is conducting additional negotiations with Servitas and Miami City Ballet. Staff hopes to return to the committee in the next few months to present a negotiated term sheet.
|Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14?|| ||Does this item utilize G.O. Bond Funds?|
|No|| ||No|| |