HISTORY
On February 23, 2022, (item R7B), the City Commission referred the subject Ordinance Amendments to the Land Use and Sustainability Committee (LUSC) and the Planning Board. The sponsor of the proposal is Commissioner Ricky Arriola.

BACKGROUND
On March 17, 2021, the City Commission adopted Resolution No. 2021-31617, authorizing the preparation of a RFP for mixed-use development incorporating Class A office space at three City-owned sites along Lincoln Lane North as well as the 17th Street parking garage (G5). On June 23, 2021, the Mayor and City Commission approved the issuance of Request for Proposals (RFP) 2021-173-KB for mixed-use developments incorporating Class A office space on City-owned parking lots P25, P26, P27, and parking garage G5. The RFP included multiple site options for proposed development.

Key RFP Goals
The key goals of the RFP included:
1. encouraging the development of Class A office space to meet the growing demand from targeted industries;
2. providing world-class commercial space in concert with increasing market demand;
3. maintaining parking capacity while providing alternative and sustainable transportation and mobility options;
4. transforming and activating North Lincoln Lane from a service alley to a vibrant and pedestrian-friendly street with amenities that will enhance the urban experience; and
5. connecting the Convention Center District with Lincoln Road.

Key RFP Terms
The following are the key terms of the RFP:

1. Required Class A Office & Retail

• 50% floor area ratio (FAR) available at each site must be Class A office space.
• Ground floor portions of the project facing a street, sidewalk, or Lincoln Lane North must include an activated liner of retail, restaurant, personal service, or similar active uses.

2. Replacement Parking

• Projects must provide in-kind replacement of existing public parking spaces displaced by the development, in addition to satisfying City Code off-street parking requirements applicable to proposed uses.
• Project must be staged to minimize the number of parking spaces temporarily displaced during development.

3. Lease Term

• 99-year maximum lease term.
• Each ground lease structured as a “triple net” lease, with lessee solely responsible for all real estate taxes, utilities, assessments or other public charges, insurance, maintenance, and all other costs and expenses associated with the operation of the Project.

4. Voter Referendum for Lease Approval

• Lease of all three lots would require approval by a majority of voters (i.e., greater than 50%) in a citywide referendum (Referendum).
• Development agreement and ground lease between City and one or both Developers must be in final form and approved by City Commission prior to placement of Referendum question on the ballot. To qualify for November 8, 2022 General Election, ballot items due to Supervisor of Elections by July 29, 2022.
• At City Commission’s sole discretion, the Referendum could be scheduled for a special election on a different date if: (1) the development agreement and lease for the applicable Option(s) are finalized and approved by City Commission and (2) the Developer pays its pro-rated share (based on total number of ballot questions) of the cost of a special election (approximately $400,000).

Award & Authorization to Negotiate
RFP responses were due and received on January 12, 2022. The City received proposals from three (3) firms: Infinity Collective LLC, Lincoln Road Holdings LLC, and Lincoln Road Property Owners, L.P. On February 1, 2022, the Evaluation Committee reviewed and evaluated all proposals. Upon review of the results of the Evaluation Committee and an assessment of the proposals, the City Manager recommended that the Mayor and City Commission authorize the City Administration to:

• Negotiate with Lincoln Road Property Owner, L.P., (a joint venture among Integra Investments, Starwood Capital Group, and The Comras Company (“Integra”) with regards to P25 and P26 (Option 5), and, if the Administration is not successful in negotiating an agreement with Integra, authorizing the Administration to negotiate with TPC; and

• Negotiate with Lincoln Road Holdings LLC (a joint venture among The Peebles Corporation, Scott Robins Companies, Inc., and the Baron Corporation, aka “TPC”) with regards to P27 (Option 3). Additionally, if the Administration is not successful in negotiating an agreement with TPC, authorizing the Administration to negotiate with Integra regarding this option.

On February 23, 2022, via Resolution No. 2022-32054, the Mayor and City Commission accepted the recommendation of the City Manager and authorized the Administration to negotiate with the proposers. At present, negotiations concern only the following sites:

• P25 (1680 Lenox Avenue) and P26 (1080 Lincoln Lane North) combined.

• P27 (1664 Meridian Avenue).

The City Commission also referred any applicable amendments to the City Code (or otherwise) to appropriate Land Use Boards and Commission Committees.