Please place on the June 28, 2023 City Commission agenda a referral to the June 29, 2023 Finance and Economic Resiliency Committee (FERC) Budget Briefing, to consider earmarking $4 million from the FY 2023 General Fund Budget surplus to cover City’s contribution to the proposed public improvements to the 100 Block of Lincoln Road (the “100 Block Project”), subject to City Commission approval of an agreement with the owners of the Ritz Carlton and Sagamore Hotel redevelopment project. 

As the City Commission has discussed for some time now, the Lincoln Road corridor east of Collins Avenue (the “100 Block”), a major pedestrian access point to the public beach, is not in a condition representative of a world-class city. The owners of the Ritz Carlton and Sagamore hotels (collectively, the “Sponsor”) proposed to design, engineer and construct the 100 Block Project subject to City approval, with the project to include pedestrian and streetscape improvements to enhance pedestrian safety and a more fluid passage of vehicular traffic in the 100 Block, as well as a newly designed beach access and renovations to portions of the Beachwalk located in the immediate area, as well as upgrades to the aging water and sewer infrastructure in the area.

The 100 Block Project would significantly improve the 100 Block for the benefit of the Sponsor, other property owners in the area and the public.  The Sponsor has estimated the total costs of the 100 Block Project to be $12 million, and has proposed an agreement that would govern the implementation of the project.

Under the terms of the proposed agreement, the Sponsor and City would each fund up to $4 million in 2023 dollars for the 100 Block Project, with the remaining $4 million to be sought by the Sponsor from the State of Florida and/or other funding sources. Up to $1 million of the City’s contribution would be devoted to the replacement of the water and sewer infrastructure.

In light of the opportunity to share the costs of the 100 Block Project with the Developer, I would like my colleagues to consider whether we should set aside $4 million that remains unspent and is available from the FY 2023 General Fund budget surplus to cover the City’s contemplated contribution toward the cost of the 100 Block Project, pending the City Commission’s final approval of the project.