HomeMy WebLinkAboutCRA-R-22-0020 BackupEdgewater Collective Project - CRA TIF
Proposal
June 17, 2021
Edgewater Collective — TIF Proposal
PROJECT OVERVIEW
PTM Partners and Kushner (collectively, "Developer") have joint ventured to develop Edgewater
Collective. Located at 2000 and 1900 Biscayne Blvd, Edgewater Collective will be comprised of three
towers including 1,299 rental units with ultramodern finishes, 18,500 SF of retail space on the ground
floor, and a multi -level parking garage, elevating units to have unobstructed views of Biscayne Bay. The
project will also feature a suite of first-class amenities, including outdoor pools and sun decks, a large-
scale co -working space with Zoom rooms, a podcast-recording room, yoga, and fitness studios, and
more.
Ideally located in the center of Miami's Urban Core, Edgewater Collective is nestled between the
performing Arts District, Edgewater and Wynwood with direct access to 1-95, 1-395 and 1-195, and minutes
from destinations such as Miami Beach and the Brickell Corridor. Other community benefits and
enhancements include:
• Affordable Housing - The Developer, in partnership with the Omni CRA, proposes to designate
a percentage of the units as affordable housing. These would be available to qualifying renters
between 60% to 100% of Miami -Dade County AMI.
• Public Improvements - The creation of winding public spaces and new, curated retail will create
a "Town Center" for the Edgewater neighborhood.
• Public Paseo - This network of ground -level public corridors will feature retail, outdoor markets,
programming, and public art.
• Long -Term and Short -Term Job Creation - With construction spanning 4+ years, Edgewater
Collective is anticipated to create approximately 1,500 construction jobs and 750 permanent
direct jobs once fully operational, as well as 200 indirect jobs.
• Art Partnerships - Edgewater Collective is being developed with many varied opportunities for
local art partnerships at all scales. These include interactive art installations during construction
on Biscayne Boulevard, art installations in the fully activated Paseo, and rotating art installations
inside the building.
The Developer expects to obtained final building permit approval and commence construction within
the next few months.
Edgewater Collective — TIF Proposal
ALIGNMENT WITH CRA VISION
Consistent with the CRA's mission, the development will achieve the following goals:
(1) Enhance the quality of life of current neighborhood residents:
• The entire frontage along Biscayne Boulevard, inclusive of the paseo, will be dedicated to ground
floor aroretail and community space for the entire neighborhood. The design includes 18,500+
square feet of retail space, intended for tenants that will be carefully curated tocomplement
the current neighborhood offerings and will serve as a "Town Center" for the Edgewater
neighborhood.
• The Developers have assembled a world -class team of architects and design professionals who
have conceptualized a campus development design including three building structures and
spanning two city blocks. This design will not only complementthe surrounding developments,
but it is also aesthetically innovative and will elevate the neighborhood. All common areas, including
the paseos, have been meticulously designed to engage with the walking public. As part of the
project, the Developers will also be making a significant direct investment in ground level
landscaping, walkways, sidewalks, and road improvements for the direct benefit of the
neighborhood.
(2) Activate the surrounding area:
• The development will add 1,299 for -rent units to a previously vacant and under -improved section
ofthe neighborhood, thereby adding to the neighborhood's energy and density. The nearly
$400,000,000+ private investment will also have a significant impact on the tax base of the Omni
CRA district.
• The creation of a public paseo throughout the development campus will revitalize the immediate
area and serve as a "bridge" to connect the Arts & Entertainment District to the broader
Edgewater neighborhoods.
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Edgewater Collective — TIF Proposal
(3) Encourage the creation of housing attainable to all:
• As part of the commitment to the neighborhood and the CRA's mission to foster affordability
for tenants, the Developers are offering to restrict the maximum rents on 130 units (10% of the
total unit count) as follows:
- 60% of AMI for 26 units
- 80% of AMI for 52 units
- 100% of AMI for 52 units
These rent -restricted units will be spread across the project's studios, 1-bedroom, 2-bedroom, and
3-bedroom units as detailed in the below table:
Unit Type
Number of Units
60% AMI
80% AMI
100% AMI
Studio
25
5
10
10
1 Bedroom
62
12
25
25
2 Bedroom
38
8
15
15
3 Bedroom
1 5
1 1
1 2
1 2
Total
130
26
52
52
As market rents in the neighborhood continue to rise at a faster rate than for the broader Miami
market (as they are expected to, given the exponential growth of the area), these rent -restricted
units will remain accessible and available for affordable tenants. The Developers are proposing
to maintain these rent -restricted units through 2047 plus any additional extensions of the CRA.
It is important to note that the Edgewater Collective project would be the first project within the
OMNI CRA to comply with the recently adopted City Ordinance that defined "affordable housing"
as being offered to residents with household incomes at 100% AMI or below.
• The Developer understands the urgency in addressing the housing affordability need and would
like to enhance the success of the offering by prioritizing the availability of the some of the
subsidized units to residents that work in public service including police officers, teachers,
healthcare workers, fire fighters, etc.
OTHER IMPORTANT PROJECT CONSIDERATIONS
Edgewater Collective is being delivered with an environmentally sustainable building program
with a particular focus on resiliency while meeting Florida Green Building standards. The project
is being built as of right, inclusive of the full parking requirements and with no variances from
Miami 21. Finally, retail, and commercial leasing opportunities within the project will focus on
locally and regionally owned and operated businesses.
CRA PROPOSAL
In order to deliver the proposed Project, inclusive of the 130 affordable units, the Developers are
seeking financial support from the Omni CRA. The Developer is requesting a rebate of 95% of the available
TIF generated by the project. This amount represents a present value amount of $35.0 million over the
remaining anticipated life of the CRA through 2047. (Refer to Affordable Unit Mix and TIF Calculations)
Edgewater Collective AFFORDABLE UNIT MIX
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Total Project
Number ofAffordable Units
Maximum Rent
# of
I
Tota I
% of
Unit Type
Units
Avg SF 160%AMI
80%AMI
100%AMI
Affordable
Total
I60%AMI
80%AMI
100%AMI
WtdAvg.
2000 Biscayne
Studio
75
445
2
3
3
8
11%
I $960
$1,280
$1,600
$1,320
1-Bed
204
794
4
8
8
20
10%
I $1,029
$1,372
$1,715
$1,441
2-Bed
129
992
3
5
5
13
10%
$1,234
$1,646
$2,058
$1,709
3-Bed
12
1,456 I
0
0
1
1
8%
i $1,426
$1,902
$2,964
$2,964
Subtotal
420
811
9
16
17
42
10%
I $1,082
$1,440
$1,869
$1,537
1900 Biscayne
I
I
I
Studio
166
540
3
7
7
17
10%
$960
$1,280
$1,600
$1,355
1-Bed
429
770 1
8
17
17
42
10%
$1,029
$1,372
$1,715
$1,446
2-Bed
247
1,019
5
10
10
25
10%
$1,234
$1,646
$2,058
$1,728
3-Bed
37
1,334
1
2
1
1 4
11%
I $1,426
$1,902
$2,964
$2,048
Subtotal
879
820 ;
17
36
35
88
10%
I $1,100
$1,460
$1,826
$1,536
Total
1,299
817
26
52
52
130
10%
1 $1,094
$1,454
$1,840
$1,536
% of Total
20%
40%
40%
100%
I
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Edgewater Collective TIF ANALYSIS
EdgewaterTIF
• ns
95%
CRA
Fiscal
Beginning Tax
Estimated Tax
Clawback
Total Available
% of Available
Roll Year
Year
Roll
Increment
35%
TIF
TIF
2021
2022
$31,578,199
$0
$0
$0
$0
2022
2023
$32,525,545
$11,015
($3,855)
$7,160
$6,802
2023
2024
$33,501,311
$22,360
($7,826)
$14,534
$13,808
2024
2025
$144,506,351
$1,313,037
($459,563)
$853,474
$810,801
2025
2026
$281,841,541
$2,909,860
($1,018,451)
$1,891,409
$1,796,839
2026
2027
$309,090,104
$3,226,685
($1,129,340)
$2,097,345
$1,992,478
2027
2028
$416,362,807
$4,473,965
($1,565,888)
$2,908,077
$2,762,673
2028
2029
$468,466,715
$5,079,787
($1,777,926)
$3,301,862
$3,136,769
2029
2030
$482,520,717
$5,243,196
($1,835,119)
$3,408,077
$3,237,674
2030
2031
$496,996,338
$5,411,507
($1,894,027)
$3,517,479
$3,341,605
2031
2032
$511,906,229
$5,584,867
($1,954,703)
$3,630,164
$3,448,655
2032
2033
$527,263,415
$5,763,428
($2,017,200)
$3,746,228
$3,558,917
2033
2034
$543,081,318
$5,947,346
($2,081,571)
$3,865,775
$3,672,486
2034
2035
$559,373,757
$6,136,781
($2,147,873)
$3,988,908
$3,789,462
2035
2036
$576,154,970
$6,331,900
($2,216,165)
$4,115,735
$3,909,948
2036
2037
$593,439,619
$6,532,872
($2,286,505)
$4,246,366
$4,034,048
2037
2038
$611,242,808
$6,739,873
($2,358,955)
$4,380,917
$4,161,871
2038
2039
$629,580,092
$6,953,084
($2,433,579)
$4,519,504
$4,293,529
2039
2040
$648,467,495
$7,172,691
($2,510,442)
$4,662,249
$4,429,137
2040
2041
$667,921,520
$7,398,887
($2,589,610)
$4,809,277
$4,568,813
2041
2042
$687,959,165
$7,631,869
($2,671,154)
$4,960,715
$4,712,679
2042
2043
$708,597,940
$7,871,840
($2,755,144)
$5,116,696
$4,860,861
2043
2044
$729,855,878
$8,119,010
($2,841,653)
$5,277,356
$5,013,489
2044
2045
$751,751,555
$8,373,595
($2,930,758)
$5,442,837
$5,170,695
2045
2046
$774,304,101
$8,635,818
($3,022,536)
$5,613,282
$5,332,618
2046
2047
$797,533,224
$8,905,907
$3,117,068
$5,788,840
$5,499,398
Total
$141,791,179
$49,626,913
$92,164,266
$87,556,053
NPV
Discount Rate
6%
$34,911,935
Assumes project delivery in three phases; the first CO expected in 2023
second CO in 2024 and final CO in 2026. Anticipated increase to the tax base is $400 million
BACKGROUND ON DEVELOPERS
Kushner is a multi -generational real estate development and management firm headquartered in New York
City. Kushner's diverse portfolio encompasses residential, commercial, retail, hospitality, and industrial
properties, with 10.8 million square feet currently under development and 24,000 apartments under
ownership across six states. Kushner's integrated team touches upon every step of the development and
management process for their properties, creating an unparalleled and seamless experience for tenants,
employees, and real estate partners.
The principals of PTM Partners have collectively invested, developed, constructed, and managed more
than $20 billion in global real estate. To date, PTM has raised over $165 million for Qualified Opportunity
Zone (QOZ) investment and deployed over $120 million into QOZ development projects with a combined
capitalization of over $600 million. The PTM team has directly executed over $2 billion worth of
construction projects covering a broad range of mixed -use development projects in Florida, New Jersey,
New York, and Washington, D.C., including:
• Residential Apartments - 4,000 total units, including 800 currently under construction in Miami and
Washington, D.C.
• Hospitality - 1,043 guest rooms, 54,000 sf of meeting space, eight F&B venues, including most
notably the 1 Hotel and Homes South Beach
• Residential Luxury Condominiums - 600 total units with a sales value over $600 million
• Commercial Office Space - 4 million square feet for high profile tenants including UBS, JP Morgan
Chase, ISO, Knight Securities, Cigna, Bank of America, and McKinsey & Co.
• Commercial Office Fit Out - 300,000 square feet for legal, consulting, and medical uses
• Educational Facilities - Four projects totaling 60,000 square feet
• Gym and Spa Facilities - Three projects totaling 48,000 square feet, most notably the first Bamford
Spa in the United States and the first branded Spartan Gym
• Retail/Restaurant - 300,000 square feet of ground floor retail/restaurant space in hospitality, office,
and residential projects
• Big Box Retail - Turn -key construction of four projects
• Garages - Seven new build garage structures with over 5,000 spaces and a renovation of an 1,188
space garage
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EXTERIOR DESIGN RENDERINGS
INTERIOR DESIGN RENDERINGS
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