Item Coversheet

NEW BUSINESS  6.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: April 30, 2021


SUBJECT:DISCUSSION REGARDING THE STATUS AND PLAN FOR THE BARCLAY PLAZA APARTMENTS

HISTORY:

The Barclay Plaza Apartments (Barclay) was acquired by Miami Beach Community Development Corporation (MBCDC) in 2007 using City Redevelopment Agency funds. The property was acquired, along with the London House Apartments and Allen Apartments, as affordable workforce housing. The property is located to the east of the Miami Beach Convention Center and south of Miami Beach Senior High School.

 

In 2014, the property was red-tagged by the City’s Building Department for having repeatedly failed to complete its 40-year assessment. The property was vacated of tenants by MBCDC that same year. In 2015, the Barclay, which had received U.S. Department of Housing and Urban Development (HUD) funds from the City, was acquired by the City since MBCDC was in default of its funding agreement. The City acquired the building vacant and boarded and has remained so the duration of the City’s ownership.

 

Subsequent to its acquisition, the City issued to Requests For Proposals (RFP) in search of a private workforce housing developer for the site after having held an industry meeting to gauge interest and concern regarding the building’s redevelopment as affordable workforce housing serving households earning no more than 140 percent Area Median Income. Unfortunately, there were no responsive respondents to these RFPs.

ANALYSIS:

The Barclay is a historic building located on a lot fronted by Park Avenue on the east and Washington Avenue on the west. The L-shaped building, whose lobby sits at grade, is three stories tall and includes a pool on the west and its own on-site parking lot. Prior to being acquired by the City, MBCDC managed the property for both short-term rentals and affordable housing (though it was required to be used solely as affordable housing in compliance with HUD rules) as it encompassed 66 studio apartments. The City acquired the property as part of a broader settlement for non-compliance with MBCDC and repaid HUD for the federal funds invested at the site. Subsequent to its acquisition, the City has used the property as a training site for the Fire Department and staging site for Convention Center construction.

 

When both RFPs seeking to find a private development partner failed, the City began to explore other uses for the property including the site’s potential as an alternate home for non-profit agencies being displaced by the closure of the South Shore Community Center.

 

As the City explored site uses for the Barclay which is a historic structure within a unique development site located at the heart of the Convention Center Redevelopment District, the City evaluated the site from a variety of perspectives that served its greater vision as a resilient City efficiently meeting the needs of its residents. As such, the City factored the following considerations/factors:

 

  1. Housing the non-profit agencies displaced by the closure of the South Shore Community Center which provide critical economic supports to the City’s economy;
  2. Preserving a historic building that is built at-grade which has been neglected for decades; 
  3.  Eliminating the vacant building located in such a high-profile location which serves as a detraction to the vibrancy of the Convention Center and the up and coming efforts of the residential and hospitality properties in the surrounding Collins Park neighborhood; and
  4. Establishing an architecturally and economically sound framework that can serve as a blueprint for private, historic properties to be prepared for ongoing resiliency and community use.

 

Housing Critical Non-Profit Agencies

 

The South Shore Community Center has long been a hub of community resources including:

  • Congregate meal site for the elderly (operated by Jewish Community Services of South Florida and subsequently relocated to the Miami Beach Senior Center adjacent to Fienberg Fisher K-8 Center)
  • Rainbow Intergenerational Child Care (employing the elderly as childcare workers for working class families and operated by Little Havana Activities and Nutrition Center)
  • South Florida Workforce - Miami Beach Center (operated by different entities to connect local businesses with workforce candidates)
  • South Beach Community Action Agency (operated by Miami-Dade County to provide LIHEAP and other services to low-income families)
  • Seniors in Action (providing services to the community’s elder residents)

 

While a variety of services for our elder community served as a backbone to the Community Center’s operation, its economic contributions impacted a broader swath of our community. The childcare provides much-in-demand services from 6am to 6pm to primarily hospitality industry workers and their families. The Workforce Center – which has now closed –provide recruitment and job placement services to connect residents and employers to fill jobs. The Community Action Agency provided utility subsidies for low-income families as well as a variety of other services intended to achieving self-sufficiency for the most economically disadvantaged in the community.

 

Over the years as the City has grown and rents have risen, many non-profits left and have not returned to our community. The South Shore Community Center is our last multi-agency community site that co-locates key providers in one centralized location and making these services accessible to our residents in a one-stop format. One of the factors staff evaluated was finding an alternate site to house these agencies including the possibility of expanding childcare services to non-traditional hours to build capacity to serve low-income wage earners in the hospitality industry that work evenings and weekends.

 

Should the City seek rehabilitating the project for use as a community or one-stop center or other community (but not municipal) use, the City could tap into Section 108 loan funds for $4.7 million in development funds.

 

Preserving a Historic Property

 

The Barclay Plaza Apartments was at one time the Barclay Plaza Hotel which housed vacationing families within its Art Deco architecture. The building was designed by Kiehnel & Elliott in 1935. It features symmetrical facades, a stepped ziggurat parapet wall at roofline, rounded corner balconies with wrought iron balustrades, horizontal stripe, bas relief ornament and abstract geometric patterned balustrade on the ground level. In 1942, the country’s Army air Forces Technical Training Command took control of the hotel for use as housing for soldiers training during World War II. The building resumed hotel operations on July 27, 1944.

 

Enriching the Convention Center/Collins Park Neighborhoods

 

The area surrounding the Convention Center to the east has evolved significantly over the past decade. In addition to the sleek, upgraded Convention Center, several properties to the east of the facility have been converted from low-income rental housing to boutique hotels. While the London House Apartments, a City-owned affordable housing project restored to its Art Deco origins, is immediately north of the Barclay, a residential condominium rests to its south.

 

The building has been vacant and boarded since 2014 when owned by MBCDC. It has been the site of two arsons and multiple break-ins by vagrants creating an eyesore and safety concern for area neighbors. The development or rehabilitation of the Barclay will remove the neighborhood eyesore and fuel the ongoing vibrancy cultivated by the neighborhood which includes the Miami Beach Library, Bass Museum and Miami City Ballet a short walk away. More so, as the building faces the Convention Center’s east façade, its restoration will compliment the aesthetic of vibrant buildings along the Washington Avenue corridor.

 

Leading by Example

 

The Barclay lies at grade at its entrance with the first floor rising up a half flight and is susceptible to flooding. The almost 90-year-old building requires a full internal gut rehabilitation as well as electrical, elevator and life safety upgrades, among other structural improvements. The City has retained the services of a building consultant to advise the cost of restoring the building and the potential use of innovative construction techniques.

 

One of the innovative approaches being explored is the use of shipping containers to rehabilitate the building while also addressing resilience. The use of shipping containers is an emerging construction technique that has spurred its use in affordable housing, small homes, environmentally friendly commercial and residential structures and high rises to alleviate housing shortages in developing countries.

 

Regardless of construction approach, the Barclay provides as opportunity to lead by example and incorporate resiliency strategies in the restoration of historic buildings. As our community faces the threats of rising seas and changing environmental conditions, the preservation of its architectural history becomes more challenging and pressing. Inaction can lead to deterioration of the stock and can undermine the character of our historic districts.

 

Sale of Property

 

If the Barclay is not selected as an alternate location for displaced agencies, it remains a substantial real asset to the City valued at $6,540,000 by the Miami-Dade County Appraiser. Since the City has failed in identifying a private workforce housing developer, the City can explore its sale for use as a hotel, market rate units or home ownership. The proceeds of the sale can be used for a variety of projects including the relocation of the displaced agencies or fund other municipal projects.

 

The property was acquired in 2007 utilizing Redevelopment Agency funds. At the time of acquisition by MBCDC in 2007, the City placed a restrictive covenant on the property’s deed that required the property to be used as an affordable residential rental use. This covenant was renewed for 15 years in January 2015 when the property was reacquired by the City. This restriction would have to be addressed regardless of the property’s ultimate use.

CONCLUSION:

The Barclay Apartments, while proven an ineffective site for use as workforce housing, has the potential to serve as a one-stop community center housing the non-profit agencies displaced from the South Shore Community Center, market rate housing or homeownership, among other potential uses.

Applicable Area

South Beach
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 
ATTACHMENTS:
DescriptionType
Referral MemoMemo
Barclay PhotosMemo