Item Coversheet

Competitive Bid Reports - C2  F




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Jimmy L. Morales, City Manager 
DATE:January  16, 2019
 



SUBJECT:REQUEST FOR APPROVAL TO ISSUE INVITATION TO NEGOTIATE (ITN) 2019-099-KB FOR THE DEVELOPMENT OF COLLINS PARK ARTIST WORKFORCE HOUSING.

RECOMMENDATION

Approve issuance of the ITN.

ANALYSIS

On July 20, 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). The project site located on the block, south of 23rd Street, west of Liberty Avenue, and north of the Miami-Dade County Public Library is part of a Unified Development Site that includes the current surface parking lot and the library. Immediately to the west is the City-owned building occupied by the Miami City Ballet as well as the planned new parking facility. Immediately east of the site is the Shep Davis affordable housing property, privately owned and operated.

 

The Planning Department estimates that the site has an available Floor Area Ratio (FAR) of approximately 90,000 square feet. The building can have a 75-foot maximum height as approved by City Commission Resolution 2016-29679 on December 14, 2016. The City’s Capital Improvements Office evaluated a concept which allowed for a building with seven (7) floors and approximately 9,200 sq. ft. per floor.

 

As part of its direction on July 20, 2016, the City Commission approved the option to include (1) floor of residential development for ArtCenter/South Florida (ACSF) and the building’s ground floor for artist studios to promote artists in the area; in addition to the option of two (2) residential floors of the new development for Miami City Ballet, Inc. (MCB).  Any areas developed for ACSF or MCB would be paid for and have condominiumized ownership by ACSF and MCB, respectively.

 

MCB and ACSF will be included in this Project at the sole discretion of the City. In the event that the MCB elects not to move forward, the City is recommending that the additional two floors be used for additional artist and/or other workforce housing.  In the event ACSF elects not to move forward, the City is recommending that there be one additional floor of artist and/or other workforce housing and one floor of commercial retail or ground floor artist studios. In the event both MCB and ACSF elect not to move forward with their respective proposed components, the City is recommending that the seven floors be used for a combination of artist and/or other workforce housing and the ground floor be developed as either commercial retail or ground floor artist studios.

 

The general parameters for the project include:

  1. The top floors will be dedicated to a combination of workforce housing units with targeting employees of artistic institutions and area educators employed in Miami Beach.
  2. Target population – Artists and employees of artistic institutions as well as area educators earning up to 140% Area Median Income (AMI) (Resolution 2017-29758).
  3. Rent levels - Rents should not be more than 30% of the AMI of targeted incomes.
  4. The City adopted Ordinance No. 2017-4149 in 2017 which reduced the minimum/average unit size to 400 square feet and reduced requirements that mandate a minimum number of parking spaces for new workforce and affordable housing developments.
  5. The project would be structured as a 50-year lease, with two (2) 20-year renewals, for a potential total of 90 years.

 

The City engaged The Concourse Group, its P3 consultant, to determine the project's viability and feasibility for leveraging the City's property to entice a private developer to maximize the project, as well as evaluate the development interests of MCB and ACSF. The Concourse Group Study  evaluated the feasibility of seven (7) possible scenarios for the Project.

 

Scenario One, Three and Four – Assumed Miami City Ballet and Art Center Florida South pay for the proportionate share of construction costs for their condominium that includes two residential floors for Miami City Ballet and one residential floor and ground floor artist space for Art Center South Florida. The remaining three floors are developed into 36 rental workforce housing units. Differences in the three scenarios relate to the payment of opportunity and land costs.

 

Scenario Two – Assumed Miami City Ballet and Art Center Florida South pay for the proportionate share of construction costs for their condominium that includes two residential floors for Miami City Ballet and one residential floor and ground floor artist space for Art Center South Florida. The remaining three floors are developed into 29 workforce and 7 market-rate rental housing units.

 

Scenario Five Assumed Art Center South Florida elects not to occupy the subject building. Miami City Ballet pays construction costs for its condominium space of two floors. The remaining five floors are rented as 48 rental workforce housing units and ground floor commercial space.

 

Scenario Six Assumed Miami City Ballet elects not to occupy the subject building. Art Center South Florida pays for the construction costs for its condominium space, that includes one floor of housing and ground floor artist space. The remainder of the building is rented as 60 rental workforce units.

 

Scenario Seven Assumed Miami City Ballet and Art Center South Florida elect not to occupy the subject building. The building is developed and fully rented as 36 workforce and 36 market rate rental units. The ground floor commercial space is rented.

 

Through this ITN, the City seeks to select the firm it deems to be best qualified with whom it can partner in negotiating a ground lease and development agreement for the design, development, financing, construction, operation, and maintenance of: 1) one of the options stated above; 2) any combination of the stated options; or, 3) another option(s) altogether that yield workforce housing units as detailed hererin. The City makes no offer, expressly or implied, of any remuneration to the selected Proposer in the event that an agreement cannot be executed. The terms Proposer and Developer are used interchangeably.

 

  • MINIMUM QUALIFICATIONS.  Please Reference, Appendix C, ITN 2019-099-KB for the Development of the Collins Park Workforce Housing Project (attached).

     

  • SUBMITTAL REQUIREMENTS.  Please Reference Section 0300, ITN 2019-099-KB for the Development of the Collins Park Workforce Housing Project (attached).  

 

  • CRITERIA FOR EVALUATION.  Please Reference Section 0400, ITN 2019-099-KB for the Development of the Collins Park Workforce Housing Project (attached).  

Following the receipt of proposals an Evaluation Committee will review proposals in accordance with the criteria established in the ITN. I am considering appointing the following individuals to serve on the Evaluation Committee:  

Maria Cerna, Deputy Director, Office of Capital Improvement Projects

Maria Ruiz, Director, Housing and Community Services

David Smith, Chair, Affordable Housing Advisory Committee

Deborah Tackett, Chief of Historic Preservation, Planning Department

Allison Williams, Deputy Director, Finance Department

 

Alternates: 

Matthew Land, Member, Affordable Housing Advisory Committee

Rogelio Madan, Chief of Community and Sustainability Planning

Alba Tarre, Assistant Director, Housing and Community Services

CONCLUSION

The City Manager recommends that the Mayor and Commission authorize the issuance of the ITN 2019-099-KB for the Development of the Collins Park Artist Workforce Housing Project.

KEY INTENDED OUTCOMES SUPPORTED
Ensure Workforce Housing For Key Industry Workers Is Available In Suitable Locations

Legislative Tracking
Housing and Community Services/Procurement

ATTACHMENTS:
Description
ITN 2019-099-KB
Concourse Study