Item Coversheet

New Business and Commission Requests - R9  K


TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:October  18, 2023



On April 29, 2021, at the request of Commissioner Michael Góngora, the Mayor and City Commission referred a discussion item (Item C4 L) to the Land Use and Sustainability Committee (“LUSC”) pertaining to a proposal for a mixed-use building at the location of City-owned Parking Lot P13 (the “Property”) located at 1000 Washington Avenue. On June 21, 2021, the LUSC discussed the proposal and recommended that it be referred to the Finance and Economic Resiliency Committee (“FERC” or the “Committee”). Subsequently, on June 23, 2021, the item was referred to FERC by the Mayor and City Commission.


Parking Lot P13 (the “Property”), located at the northwest corner of Washington Avenue and 10th Street, is a 14,694 square foot surface parking lot with thirty-seven (37) spaces. The parcel is comprised of Miami Dade County folio numbers 02-4203-009-0280 and 02-4203-009-0290 and is located immediately south of the Washington Park Hotel complex at 1020-1050 Washington Avenue. Annual parking revenues for P13 for FY 2021 and FY 2022 were $231,327 and $255,731, respectively.


WPH Properties, LLC (the “Proposer” or “Developer”), owner of the Washington Park Hotel, submitted an unsolicited proposal, pursuant to Florida Statutes Section 255.065 (the “Statute”) that would engage the City and WPH Properties, LLC in a redevelopment project of P13 with a new mixed-use structure. The proposed development program for the lot (the “Project”) contemplates a seven (7) story structure that includes:


(1) 135 structured parking spaces in three levels, including a single subterranean level utilizing mechanical lifts;

(2) ground level commercial space;

(3) three (3) levels and up to thirty-six (36) units of workforce housing units, with minimal rental terms of the units of no less than one year;

(4) a top-level office/hotel use level; and

(5) rooftop residential/hotel amenity area.


A copy of the proposed design is presented is attached (Exhibit A).


The Proposer has offered to enter into a 99-year land lease where they would pay rent to the City.  The rent will double the current income the City earns from the current operation of the parking lot to approximately $470,000 per year plus 2% annual rent escalation.


The essential terms are set forth in the term sheet attached hereto as Exhibit C. Currently, the Proposer believes that a rezoning of the site is the only change necessary to accommodate the redevelopment as part of a unified development site with the remainder of the block. The Proposer is requesting the City process and incur the responsibility of zoning changes and relevant fees. Closing to occur following the issuance of necessary zoning approvals, including approval by the Historic Preservation Board (“HPB”).


Certain Legal Requirements

If the City Commission determines that it would be in the City’s best interests to enter into a comprehensive agreement for the Project, Section 255.065, Florida Statutes (the “Statute”), requires that the City publish a notice in the Florida Administrative Register and a newspaper of general circulation at least once a week for two (2) weeks stating that the municipality received a proposal and will accept other proposals for the same Project. The timeframe within which the municipality may accept other proposals must be at least twenty-one (21) days, but no more than one hundred twenty (120) days, after the initial date of publication.


Additionally, if the City chooses to proceed with a proposal to develop surface lot P13, the Statute requires that the City retain an architect or engineer, in accordance with the requirements of Section 287.055, Florida Statutes, to ensure a professional review and evaluation of the design and construction proposed by the initial or subsequent proposers, including without limitation a review of material quality standards, interior space utilization, budget estimates, design and construction schedules, and sustainable design and construction standards consistent with public projects. Pursuant to the Statute, the required review shall be at the sole cost of the proposer. If the fees for the required review are anticipated to be lower than the threshold established in Florida law for requiring a formal solicitation, the City may utilize a prequalified consultant pursuant to an existing City contract to perform the review and thereby expedite the review process.


If the Commission opts to proceed with the Project, whether with WPH Properties, LLC or a different proposer, the City Administration would incur title search fees, outside counsel fees and other costs related to its review and evaluation process, as well as the negotiation of a comprehensive agreement. Although the City has not imposed an application fee, the City has the right to require, per the Statute, that the private entity pay the costs of the required reviews. The City may stop its review of the unsolicited proposal if the private entity fails to pay the additional amounts. The City will require WPH Properties, LLC and/or any other successful proposer to execute a Reimbursement and Indemnification Agreement in connection with the City’s evaluation of any proposal, and the negotiation of all necessary agreements, to develop the P13 surface lot.


The Master Parking Resolution imposes certain restrictions on the sale or leasing of assets that form part of the Parking System.  Surface lot P13 is such an asset. If the Commission wishes to lease surface lot P13 to develop the Project, an analysis would be required to determine whether this could be accomplished in compliance with the Master Parking Resolution. Furthermore, it would need to be determined if the leasing of this parking lot would impose a risk that would impact the current Bond Covenant.


To understand the potential value of the development of this site, the City conducted an appraisal of the Property at the request and expense of WPH Properties, LLC (Exhibit B). The parcel has been appraised at $8.8M. Considering the size and location of the subject site, the Proposer is requesting the City accept the unsolicited bid proposal for the Project. Pursuant to the Statute the City would advertise (minimum of 21 days) not to exceed sixty (60) days, to allow time for the City to receive competitive proposals. If a competitive solicitation process is recommended by the City Commission, then a formal Project Scope and Term Sheet will be developed. Lastly, the Proposer is agreeing to provide additional public benefits as follows (Exhibit C):


·       Make an additional $2 million in payments to the City over a three-year period prior to completion of the new building.


The exact height of the new proposed structure has not yet been determined. However, if height modifications are required, then Land Development Regulation (“LDR”) amendments would be considered following the solicitation.




At the July 28, 2023, the Finance and Economic Resiliency Committee meeting this item was discussed, and the Committee directed the Administration to move this item to Commission for review and discussion.






Based on the foregoing, the Administration recommends the Mayor and City Commission review and discuss the Developer's proposal to develop the Project at the P13 surface parking lot. If the City Commission determines that the acceptance of the unsolicited proposal for development of P13 would be favorable to the City’s economic interest, the Administration recommends following the formal competitive bidding process set forth in the City Code. 



Applicable Area

South Beach
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
Yes No 
Legislative Tracking
Facilities and Fleet Management
Commissioner Alex Fernandez

Exhibit A - WPH Properties, LLC Proposed Concept Design
Exhibit B - Appraisal Report
Exhibit C - Term Sheet