The item sponsor has indicated that the focus of this discussion will be on the 7th Street Garage (G1), which is located at the SW corner of Collins Avenue and 7th Street (200 7th Street). The garage was constructed as the result of an Acquisition, Construction and Development Agreement (the Agreement) by and between the City (“City”) and The Ballet Valet Parking Company, LTD (“BV”) and the McCarthy Brothers Company (“GC”) in 1994. The Lease Commencement Date was August 1, 1997.

Pursuant to Section 9.1 of the Agreement, provided BV is not in default under any of the terms, covenants or conditions of this Agreement, for a period of 30 days commencing on the date which is the later of 30 years after the date the City opens the Garage for service, or the date upon which City Financing Proceeds, including any bond financing utilized by the City to finance the purchase of the City Property and the construction of the Garage, have been repaid or retired, BV is hereby granted an option to purchase the Garage including the City Land, the Air Space and the Easements (the "Option”). Additionally, pursuant to Section 10.1 of the Agreement, the City is hereby granted the right of first refusal to purchase the BV Land and the Retail Space, provided such right is exercised pursuant to the terms of this section and the City gives BV written notice of its election to exercise the right of first refusal within 30 days after receipt of written notice of BV's intention to convey the BV Land or the Retail Space or any interest therein to a third party together with a copy of all proposed contracts, agreements and documents relating to the proposed sale.

On July 6, 2022, BV communicated via email to the City Manager their interest in, and if the City would accept, an acceleration to their option to purchase G1, including the City Land, the Air Space and the Easement, which falls under the original language of the Agreement for an Option pursuant to section 9.1 of the Agreement, said, BV’s option to purchase would be in April 2026.

G1 is a busy garage, often full and is conveniently located near Ocean Drive. It provides affordable parking for South Beach visitors. There are 4 municipal garages in the Art Deco Cultural District (ADCD). The garages on 12th Street and Drexel Avenue (G2) and 13th Street and Collins Avenue (G3) are smaller garages that are also often full. The Anchor garage (G4) is larger. However, the City has an Agreement with St. Moritz Corporation to use up to 70% of spaces for the valet parking operator of The Lowes and Royal Palm Hotels, which impacts the number of parking spaces available to the public. Additionally, a number of parking access cards for the Anchor garage have been issued to the Lowes for its employees.

Consequently, losing parking Garage G1 would significantly reduce municipal parking in the South Beach area, leaving residents and visitors with limited options; other than higher priced, private parking lots and garages.

It should also be noted that as a stand-alone parking garage, there is currently no FAR associated with G1. In the event of a future proposal to convert parking spaces to another use, there would likely be FAR implications, which may require voter approval under the City Charter.