HomeMy WebLinkAboutM-79-0007Joseph R. Crassie
City Manager
aiies de Connolly /I
roject�'Director (,r
JahUatY'i , 1979-
Ptopbsed Miait i tbrld Trade Center-,-.
As per the request made by the Commission at their last meeting of
December 14. 19781in Motion No,M-78-724i attached herewith are the
following:
Summary Analysis of the Preliminary Development Plan
List of World Trade Center Development Ownerships
Please note that of the twenty listed,
7 were publicly developed
4 were public/private joint ventures
9 were privately developed, with 4 of these
having some public particiaation
Inquiries have been made to several consultina firms who have the exper-
tise to analyze the subject report. It is recommended that either of
the following consultants would be qualified to do so.
Hunter Moss
Boca Raton, Florida
Bob Lee of the New York Office of
Peat, Marwick, Mitchell & Co.
1000 Brickell Ave.
Miami, Florida
A meeting was held with the co-chairmen of the Miami World Trade Center
Sub -Committee of the New World Center Action Committee of the Chamber of
Commerce. A letter will be forthcoming from them stating their position
after Monday, January 15, 1979.
Meetings have been held with the prospective developers, their Mortgagee
and the Planning Department in regard to the possibility of getting a
U.D.A.G. grant from HUD to augment financing of the City's portion of the
proposed World Trade Center. The entities and elements in this develop-
ment make this project highly qualifiable for a U.D.A.G. grant. The
Mortgagee,
willing to make a
commitment subject Massachusetts Mutual Life Insurance Co. is to the approval of the grant. We are presently
working on the grant application and will be ready to submit it by the
deadline January 31, 1979, subject to the approval of the Commission..
:St1MMAR? AN L' S_l,$ Ot•Pt ELt-ti* V:6MLO OT- ,ILA,
The trelitinary bevelopi ent .Plan•€or Miami World trade -Center
is ih two sections, the teooid of WhiG='h is a •technical appeficdi to
the firs't.. This appefidix'.prepared by SECOPI of Parisi Prance) it'.
entitled '"Marke,t analysis and Progtam RecOmmehdationt" . The Lain
portion of.the.report embodies. the results of this analysis and' •
suggested program and incorporates their in a framework -intended to
produce a•finandially-'feasible approach to the..successful development
of- a world trade' center in Miami.
This approach calls• for the City of Miami to employ ' certain
.developmental- techniques at•its disposal and already used-ih-the
Conventioh.Center project. It is the conclusion of•city staff
that' the propoealtH are reasonable and appropriate, that. the
development of Miami World Trade Center'is for'numerous reasons in
the public interest and that the'•Preliminary.Development:Plan'
constitutes the'proper•basis for achieving this objective.'
The.report demonstrates that a world trade center meeting.the
standards of the•World Trade•Center•Association (WTCA) offers.--
significant benefits for -the -conduct of international commercial:
transactions'on behalf of its tenants and/or.users. Such a -project
is not aconventional office building since it contains certain-
specialized.services-and facilities •which could not be •afforded
or considered in a strictly -commercial structure. Moreover, there
are clear advantages which.derive-from membership in -the WTCA
itself, in. availing tenants and/or users .of the World Trade Center
of• the -resources of an international network of similar centers.
The nature of.a world trade:center and the history and purposes of•
the.WTCA •are clearly set forth in.'the appendix.
.The consultants, relying.on available economic. data, confirm-.
that the Miami -area is experiencing. a. substantial growth -in the. area
of. international commerce'and.-that the outlook is. for •a continuation
and augmentation of.this trend-+ SECOFI also. reviews the role and
function of. a world•trade-center-in its,urban context, including.
both the effects'on..and .ofsuch a development.,. We concur in their -
conclusions -that successful realization of'such a.:.project will very•
beneficially impact'the'Miami area -in focussing: world trade --activities
in the central. business district; in enhancing development trends in
a desirable manner; and -in adding to the general economic function'
of the -city.. •
-
SECOFI conducted a market survey based both on questionnaires
and formal interviews These were designed to explore and evaluate
the attitudes and motivations of different categories of potential
tenants and/or users toward a World Trade Center in Miami. The
conclusions y takifig ifitti accouht•the relatively early stage cf the
deVeibptefit process and the general Lack of famiiiarityWith the
• o cep't► appear to be largely p6sitiVe:4 HoWevet, it -appears a16-6
•Spade- re writs and efitities: flot now
that interest wi.i1 be strofiger among fi.rei�ients "'f the yea jor.ty bf
located it% Mi& rii i - Also y the p o
tenants Will be small in 6it ch whis means a tarket fig afid• fifianding
proble n . of. soiite dimens .11 be required; normally afi of fort
of. this anticipated scope is beyond what a private .developer would
be prepared to undertake.
• ih addition► the market survey appears to indidateithat'tolaptS
acid/or users will tend.to• be snore in areas related.to financial
aspects of world tracde, as; well. as other special services (marketing►
law,•accountings etc.)?•rather than the direct handling of g Gods.
This should be an asset ih the general financial strength of the
proposition since such` entities. tend to. be able to afford reasonable
rents. That ..these -.will also often be new to the• Miami area,su"�gg.:.m
ests
both•a si ng�ificant.economic asset to the cofnmunity.and a low incidence
of competition with other existing, more conventional office buildings.
•i~'inally; by- a, substantial degree, the.market survey.cotfirms that
.• a.:downtown.tocation'is favored`by-prospedtive'tenants and/or users.
Based on existing statistics on the Miami office market, combined
with growth projections, a World Trade Center will be economically
justified in the range of 300,000 Sq. Ft. (net rentable) and will
not adversely impact other efforts; indeed, by the economic stimulus
which such a development would induce, we believe the net effect will
be to improve conditions for other existing and projected commercial
buildings.
The consultants, SECOFI, developed a set of programs recommenda-
tions which have been used as the basis for the development plan,
e
and which calls for an aggregate of nearly 4500000 ross Sq.
Relying on this program for tenant office space and the essential
ancillary special service and facilities, and on realistic estimates
of development costs. Miami World Trade Center, Inc. (MWTC), through
its real estate arm, SEFRIUS, has given us a comprehensive financial
presentation of the proposed project which we believe demonstrates
such a development can be realized if costs can be kept near $25
million overall and assuming a net annual income of $3 million, both
for the private sector. However, we believe as they do that the
key to attracting the necessary private investment is to limit the
early operational exposure within reasonable bounds until the
facility becomes fully financially feasible. This implies a measure
of public participation which MWTC outlines and which appear to be
reasonable, with ample precedent, and well -justified by the expected
public benefits.
The report analyzes six downtown sites recommended by the
DDA. We support its conclusions' that, while none of these is ideal,
only the so-called Phase B site (former Dallas Park Hotel), augmented
as the Commission has already agreed to do for the planned parking
c)arage, adectuately fulfills the needs for this planAtom/ other
things t this strohgly reinforces the Cohferehoe..CanVeht :oh 'Ceit+er
development to Which the city has already made a subttahtial
financial do Mittttent:
the techniques We therefore redofiiniendas based oil the preliMi.,
nary developiiieht plan, include:
l►) Lease of rights (air, surface and sub'sur'faee), including
access, to permit the priVate development.
2.)
$uoh lease to be modelled on the Miami Center Lease and
providing fora base tent (inclusive of to&es) equivalent
to the cost of land rent, and performance rent equivalent,.
to a reasonable share of the profits
3,) Public development of the garage, connector to Itnight
Center, and other street improvements and landscaping
(all required in any event) along with elements necessary
to make development above the garage achievable and
accessible.
4.) Master Lease by the developer of commercial areas within
the garage structure with the responsibility to finish,
sublease, manage, and maintain such areas.
5.) Leasing controls to ensure operation as a qualified World
Trade Center; provided, however, that reasonable limita-
tions imposed by lenders can be accepted.
6.) Application of such other financing sources as can be
identified (e.g., UDAG).
Finally, in our judgement, these methods can be, and are,
recommended in light of the following public benefits:
1.) It focusses development trends in the downtown area in a
desirable manner and encourages adjacent development.
2.) It strengthens the retail district nearby.
3.) It enhances the efficiency, use, and therefore the cost-
effectiveness, of the DPM and rapid transit system.
4.) It promotes and enhances the international role, image and
standing of Miami, symbolizing the New World Center.
5.) It improves the general business environment.
6.) It enlarges the economic base of the city.
7.) It increases tax revenues to the city.
8,) 1t is strongly syhergistio With the Mini dehtet acid
heips to enhanoe the Valie Of the ditY's itVesttheht
there
9.) It allows the City to tealite the underlying land value
of the site in a timely ftiahher which is well related t i
the mandated schedule for dompietioft of the garage.
104) It leverages a substantial private investment 'ifi ekeess
of $25 million.
. r
11.) It provides signifidaht employment opportunity, both
during construction and thereafter.
1
LISt off` �VU2�,Db '%ER b�OPhfil` ,01I,I25?5
Source: Thomas Kearney) Cha3.rtah
lhfOrMatioh aho tomtUhieations Cohtmittee,
World Trade Center Association
OP f2ATIONAL •
World Trade Center
Toronto
New Orleans
Los Angeles
Houston
Zaire
Hong Kong
Dallas
London
Baltimore
Copenhagen
Brussel
Tokyo.
Seoul
New York
-tub1iC/Prv'ate
Public
Private
Private
Public
Public
Private
Private
Private
Public
Board of harbour CofiifttissonerS'
First WTC
Substantial State and 'city
assistance through tax abate-
ments, promotion, etc,
Private
Private
Private
Public/Private
Public
Public/Private
Port Authority
National government
Hong Kong Land Development, an
arm of Jardine-Mathisen, which
has had special rights and
privileges in Hong Kong
conferred by the British Crown
since at least the 19th century.
Part of Merchandise Mart
Public Land, advantageous lease
terms
Port Administration of the
State of Maryland
Port Authority of New York and
New Jersey
Moscow
to. Ilamre
Singapore
Cairo
Marseilles
Publid/Date
Pub is
Co ttrh ht , .:
• Public/Private Port Author ity With- private•
participatioh
Public
Private
Public/private
Substantial assistance of
Various types from hatiorial
governments
Public land, chamber of
commerce, and primate
participation
to:
�t7oA1:
• CttY• of MtAMt "FLorob4,
iNtt 114b+Ftd-t 14I :f*of ANbUfi.M'
Joseph R. GraSsie
ity Manager'
S% ,y {
ines J.; f onnolly '
project tbiteetor.
:Air January lb, 1979
�.utllcc;;
Miami Center ParkingCatagei.
Aoguisition of AdditiOnal Land
rric.Lost3t1rt;
Attached herewith are Copies of pages from the Feasibility
Report for the Proposed Conference Center Garage prepared
by Conrad Associates, the parking consultant to the off -Street
Parking Authority and from the Preliminary Development Plan
for a Miami World Trade Center prepared_ by SECOFI and SEFRIUS.
Those portions of both documents that pertain to the recom-
mendation that the City acquire the two out -parcels of land
in order to square out the site are underlined.
-7e-TsoCti&tra to
A btvISION (7 CONttkuctION RESEARCH ANb DEVELOPMENt,,P c.
oTsit= Not4tH W C►«R bRtVE CHICAGO, ILLI14OI5 6o6C56 tOi j. Z6 - 31
•oternber 19, 1978
tilt, Mitchell Wolfson, Chairman
Off -Street Parking Board
Mr, Richard A. La t1aw, Director
Department of Off -Street Parking
190 NE Third Street
Miami., Florida 33132
AkditVekc-rtih
t istat tkItitid
PAFtftill�". O tgLJL if?C:
Gentlemen;
Included with this letter is the feasibility report on the Proposed
Parking Garage No. 5, to serve, the City of Miami/University of
Miami lames 1,. Knight International Center,
The report recommends development of the Proposed Parking Garage
No. 5 We believe it is desirable to purchase the additional parcel
of land to make the site nearly square. The parking capacity of the
recommended facility would be 749 spaces or 988 spaces, depending
on whether the City of Miami decides to make provision for an air -
rights structure above the Garage. The capital cost of $6,870,000
or $10, 400, 000 would be met by the issuance of revenue bonds. Any
parking revenue bond issue sold by the Department of Off -Street Park-
ing would have to be guaratneed by the City of Miami for the first
five (or more) years, as the required amount can not be funded under
the existing Bond Ordinance.
It has been a pleasure to be of service to you. The cooperation of
the Department of Off -Street Parking and the City of Miami is greatly
appreciated.
Sincerely,
CONRAD ASSOCIATES EAST.
A Division of Construction
and Development, Inc.
Howard R. May, PE
President
HRM/eb
SUMMARY. OP REPORT.
This report examines the feasibility of a parking garage to serVe
the City of Miami/University of Miami James t, knight triternational
C enter The consideration of two major alternatives results in the
study of six schemes. The two major alternatives are•
Purchase of additional land parcel,
Provision for air rights structure above the garage,
principal recommendations of e report are:
Construct a garage with a capacity of 749 spaces without air
rights provisions or 988 spaces with air rights provisions.
Purchase additional parcel of land.
Carefully consider the inclusion of the air rights provisions.
Finance the project through separate bond issues for the City of
Miami portion and the Department of Off -Street Parking portion;
OR
Finance the project through a single bond issue sold by the
Department with the City paying the Department at an accel-
erated rate to amortize the City portion of the project in
years i nstead of thirty years.
(from Conrad Associatesreport)
Sche Year of l#rea k�t V h
2 00/
t32 2003
C 1 2004
C=2 2000
tncr_ased use and faster rate 'het -eases will of course shorten
the time to achieve a ` break-even condition for the r ew garage.
Should it be possible to acquire, the additional land necessary
for these schemes, then schemes C--1 or C-2 are recommended.
It is recommended that the additional parcel of land be acquired
by the City of Miami for use as part of this project. This addi-
tional land is necessary to construct a parking garage of the
size required to properly serve the convention center complex.
Also, as determined by rerendino, Grafton, Spillis, Candela, this
additional land is needed if a feasible air rights structure is
be included in the project,
One lot of the additional parcel of land has a building upon it
which may be considered a "historical building" within the city.,
Should this building receive the "historical" classification, con-
siceration might be given to relocating the building to another.
site so that this site can be used for the proposed project. For
example, the "hisotircal building" might be relocated to a site
along the proposed river walk under the expressway in the vicinity
of S.W. North River Drive and S.W. 3rd Street. The Department
(from Conrad Associatesreport)
_75_
Which it is beyond the scope bf tiii. ' ret:fort•to•oohsi e i.
14oWever, the 1ikciy necessity of -providing such additional
uses oou1d prevent the rapid dedisioh�makihig` needed to•
advance the -World Trade Center project
The Phase II Site cannot possibly hold both a parking
garage to meet the needs of the hotel, conference-cohvehtion
center, and World Trade Center as well as the World Trade
Center itself. The parking requirements for all these uses
ate estimated at just under 1,000 cars, This will necessitate
acquisition of an additional parcel of at least 12,000 sq.ft.
at the northeast corner of the existing Phase 8 site.
In order to accommodate"the different requirements. for
World Trade Center, DPM station, and parking for nearly 1,000
cars, we recommend that a square site of 250 ft, on a side be
created. This would include not only the 12,000 sq. ft. par-
cel mentioned above but also a 700 sq. ft. parcel just to the
east of it (currently open land next to the Howard Johnson
Motor Lodge garage and part of its site) and dedication of a
portion of the dead-end spur of S.E. 3nd Street-. This will.
permit an efficient garage of nearly 1,000 spaces meeting
Off -Street Parking Authority minimum standards for bay width
,(61 ft., 6 in.) and not requiring more than seven levels of
,
paring, in a 4-bay configuration. A smaller site would
•
require a higher parking section and would be less efficient
(from SEFRIUS' report
applied ih .connection with .this pfoject.
We recomMehd utili2ation of the principal site referred
to us by the city for Consideration,hatnely the phase 13 site
of the Knight Center. However, we must cohdi.tion this recom.
mehdatioh oh the acquisition of at mast ohe, and preferably.
two,additi.onal parcels to permit construction on the site of
a properly -designed four -bay parking garage already_required
_ v ,4....w...w ., -.. ..i;.+;awr. 4• -, ., .... ..iF..W.tMy '
for the might Center. We are therefore proposing utilization
of the air -rights above such a facility for the World Trade
Center. In our judgment, no other site has the necessary
attributes for this project, and we are fortunate that it is
in this case in public ownership, since only the public sector
will have the incentive to devote the site to this use.
The arrangement suggested here is termed ."joint develop-
ment", meaning "a land development that is related functionally
and physically to a public... facility."* The public facility
*This definition is given -in -a paper entitled "Joint Development
in Connection with Public Transportation Projects in Urban Areas"
by Ross Burkhardt and William B. Hurd of Public Technology, Inc.,
and Woodrow E. Moore of the Dade County Office of Transportation
Administration. We have deleted the word "transportation" to
cate a broader application of the term "joint development".
paper was delivered at the Joint Development Marketplace
Washington, D.C. on 25-27 June 1978.
(frpm SEFRIUSreport)