At the April 29, 2015 City Commission meeting, following the Washington Avenue Blue Ribbon Panel presentation and recommendations, the Mayor and City Commission directed the Administration to prepare an RFP seeking proposals from parties interested in partnering with the City to develop parking garages along the Washington Avenue corridor to address parking concerns. With the completion of the Walker Parking Study, several other areas were identified throughout the City as high priority locations also in need of municipal parking garages. The areas identified in the Walker Parking Study were included in this RFP.
Through this RFP, the City sought proposals for public/private partnerships to develop public parking garages City-wide (each proposed site, a proposed “Project”) to address the shortage of parking City-wide, with an emphasis on the “High Demand” and as identified more fully in the Walker Parking Consultant Demand Analysis. Accordingly, the City issued this RFP to seek teams 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).
RFP PROCESS
On October 14, 2015, the City Commission approved the issuance of Request for Proposals (RFP) No. 2016-009-ME to seek proposals from parties interested in partnering with the City of Miami Beach, Florida, to develop public parking garages within the City. On October 20, 2015, the RFP was issued, with an opening date of January 19, 2016. A pre-proposal conference to provide information to the proposers submitting a response was held on November 3, 2015.
The RFP provides for a two-step, phased evaluation process. The Phase I selection process, which is the reason for this item, relates to the qualifications and experience of the proposing team; the number of public parking spaces generated by the project; and if the project is within the high demand areas, as identified by the Walker Parking Study. Only those Proposers short-listed during Phase I will be authorized to proceed to Phase II of the RFP selection process.
The City received proposals in response to the RFP from the following two (2) firms:
· Terranova Corporation.
· Washington Properties, LLC and RF 930 Washington, LLC.
On February 10, 2016, the City Manager appointed the Evaluation Committee via LTC # 062-2016. The Evaluation Committee (the “Committee”) consisted of the following individuals:
- Max Sklar, Director, Tourism, Cultural and Economic Development Department, City of Miami Beach
- Rogelio Madan, Principal Planner, Planning Department, City of Miami Beach
- David Martinez, Director, Capital Improvement Projects Department, City of Miami Beach
- Julie Santamaria, RBC Capital Markets
- Saul Frances, Director, Parking Department, City of Miami Beach
The following individuals were appointed as alternates:
- Maria Cerna, Division Director, Capital Improvement Projects Department, City of Miami Beach
- Mark Milisits, Asset Manager, Cultural and Economic Development Department, City of Miami Beach
- Monica Beltran, Assistant Director, Parking Department, City of Miami Beach
The Committee convened on February 17, 2016 to consider proposals received. Mr. Max Sklar, Mr. Thomas Mooney, and Ms. Carmen Sanchez were unable to participate as committee members; therefore Mr. Mark Milisits and Mr. Rogelio Madan served as a member. The Committee was provided an overview of the project, information relative to the City’s Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, references, and with a presentation of each proposer. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFP. The evaluation process resulted in the ranking of proposers as indicated below. The evaluation committee expressed its sentiment that both proposals should be moved to Phase II.
On March 18, 2016, the City initiated Phase II of the evaluation process via Addendum No.4 of the RFP and held a voluntary pre-proposal meeting on March 28, 2016 with both proposers. On June 3, 2016, the City received the proposals for Phase II.
It was determined that it would be in the best interest of the project to maintain the same Committee from Phase I of the RFP selection process. The Committee convened on August 17, 2016 and August 26, 2016 to consider the proposals received. Mr. Saul Francis was unable to attend.
The Committee’s ranking was as follows: Washington Properties, LLC / RF 930 Washington, LLC; and Terranova Corporation.
MANAGER’S DUE DILIGENCE & RECOMMENDATION
After reviewing all the qualifications of each firm and having considered the Evaluation Committee’s comments and rankings, I am recommending that, for Phase II of the evaluation process, the Mayor and the City Commission authorize the Administration to enter into negotiations with both proposers Washington Properties, LLC and RF 930 Washington, LLC and Terranova.
Washington Properties, LLC and RF 930 Washington, LLC
Washington Properties, LLC and RF 930 Washington, LLC (the “Developer”), proposed a joint development of Municipal Parking Lot No. P12, containing 24 parking spaces at 900 Washington Avenue, and the adjacent property, located at 930 Washington Avenue, currently a bank with a drive-thru teller facility and small parking lot. The Developer proposes a 145 room hotel that would serve as liner building to a 247 space parking garage. Of the 247 spaces, 145 are proposed to be “City”-owned public parking spaces, increasing parking availability by 121 spaces. The balance, 102 spaces, are required parking for retail and hotel accessory use.
The proposed project is consistent with the recommendations from the Washington Avenue Masterplan by providing new development in the form of a hotel as well as increased parking availability to the corridor. The following are issues that will need to be addressed during negotiations:
Issues:
The Developer must provide a parking plan to address parking demand generated by the hotel component of the project, specifically, guest and employee parking. Of course, the concern is potential utilization of the 145 City public parking spaces proposed by the project that would negate any enhanced parking availability. The Developer committed to providing a parking plan to address this issue.
The Developer committed to addressing issues related to access and traffic queuing to the parking garage ingress/egress proposed on Pennsylvania Avenue. This issue would need to be addressed during the negotiation phase.
Finally, the Evaluation Committee raised a concern with the cost of construction and cost per space in this proposal, of approximately $56,254 per space, and recommended the Administration negotiate with the Proposer to bring the cost down.
Terranova Corporation
Terranova Corporation (the “Developer”), proposed a joint development of Municipal Parking Lot No. P62, consisting of 34 parking spaces at the southeast corner of West 42nd Street and Jefferson Avenue, and the adjacent property, located at 830 West 42nd Street, currently a private parking lot, consisting of 26 parking spaces, owned by and serving the Terranova office building. The Developer proposes a parking garage with 203 total spaces on three levels, providing 143 City spaces (an increase of 109 spaces) and 60 private spaces (an increase of 34 spaces).
If ground floor retail were added to the project a minimum of 50 parking spaces would be lost reducing the total number of parking spaces to 153, compared to the 60 combined parking spaces in the existing City and private lots. Terranova requires 60 spaces, leaving 93 spaces for City parking, which is only a net increase of 59 spaces (93 spaces with garage minus 34 existing surface spaces = 59 spaces).
If retail is desired by the City Commission construction costs need to be updated to accurately determine what the cost per space would be, but it would undoubtedly increase the cost per space, which is currently $33,912. Additionally, 42nd Street is not considered a prime retail location and staff has concerns with the viability of the retail space.
The proposed project provides additional parking supply to a high parking demand corridor, particularly Monday to Friday, during traditional business hours. The following are issues that will need to be addressed during negotiations:
Issues
The Developer did not propose any ground floor retail on West 42nd Street, citing significant parking space loss likely resulting in a non-viable project, as well as concerns with establishing retail across from the Nautilus Middle School.
The Developer committed to addressing issues related to the façade of the garage on West 42nd Street, should the ground floor retail requirement be waived.
The Evaluation Committee expressed concerns with the proposal, which limits the Developer’s contribution to the land value of its parking lot, and which requires the City to pay for the entire cost of construction, including the 40-60 dedicated spaces for Terranova. In addition, while the Developer stated at the Evaluation Committee meeting that it is open to discussions on the structure of the transaction, the Developer’s proposed lease or easement structure may implicate ad valorem taxation issues for either the City or the Developer, or both, and the proposal regarding the dedicated parking spaces to the Developer at no cost likely implicate private use and other restrictions under the City’s existing Parking Revenue Bonds. The Administration will clarify these issues at the outset of any negotiations to determine if further negotiations are in the parties’ interests.