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HomeMy WebLinkAboutpresentationSUBMITTED INTO THE PUBLIC RECOFQP 1TEM s'X5ON 2/1-AA s Midtown Miami Project • November 2002 Commission adopted the FEC Corridor Strategic Redevelopment Plan • Purpose was to develop a rational blueprint for the economic revitalization of one of the most economically challenged areas of the City Midtown Miami Project • One year community planning process • Nearly 20,000 jobs lost in the 1990's • Per capita income of $9,127 (42% of national average) • Poverty rate of 42% and unemployment rate of 15% (each more than 3X national average) • The 56-acre FEC railway site was identified as the key to revitalization of the area Midtown MiamI:F::1,toieCt • Rail yard has contributed to blight in the area • Impacts not only Wynwood, but surrounding areas: • Little Haiti • Overtown • Allapattah • Design District • Biscayne Boulevard corridor Midtown MiamiPro1ect • The FEC Corridor Study concluded that any development on the FEC rail yard site needs to be integrated into the surrounding neighborhood in order to maximize revitalization opportunities • The centerpiece of the study is now going to be implemented Midtown Miami Project In December 2002, Biscayne Development Partners purchased the 56-acre FEC rail yard site for $35 million, and shortly thereafter the adjacent Chiquita Banana site for $7 million. 6 Midtown M1arni..irF.rojeCt Biscayne Development Partners (BDP) • GP is Midtown Equities (private investment management company for the Cayre Family assets) p Y • 24% leasehold interest in the World Trade Twin Towers • of Holmdel NJ(Lily— 120-acre site with Commons Tulip Site) 235,000 square feet of retail and 80,000 square foot office and seminars complex • Cayre Jemal's Gateway in D.C. — converted 250,000 square feet warehouse into 350,000 square feet office • Conversion of the 492,000 square feet closed Woodward and Lothrop Department Store in D.C. into a new retail and office facility lami 1 Midtown Miami Project The other Partner in BDP is Samuel and Company • Michael Samuel, President, has acted as a purchase rep, manager developer and of a wide variety of prestigious p projects, including: • Parkmerced in California — 3,400 residential units and 200,000 sq. ft. of commercial • Seabonay Beach resort condominium conversion in Hillsboro Beach, Florida • Fresh Meadows, NY — 3,200 residential units with 1,000,000 sq. ft. in commercial space Biscayne Development Partners will develop 3,000 condos, along with structure parking and retail forming the base for the residential towers Midtown Mian1iProject • Developers Diversified Realty (DDR) will develop 600,000 square feet of retail on the site • DDR, from Cleveland, is a publicly -traded REIT • Nearly $9 billion in assets • Largest "open air" REIT in the nation • Construction will be financed out of cash • Currently owns or manages more than 450 retail properties in 44 states with 100 million square feet. • In May 2003, DDR displayed this project at the International Council of Shopping Centers (ICSC) annual convention • Midtown Miami Project is the preeminent project Midtown Miami Project What does the proposed project bring? • Approximately 3,000 loft condos, 350 apartments and 600,000 sq. ft. of retail • Development on a critical mass scale in a depressed area of the City • A development that embraces the FEC Study • Construction costs of nearly $1.2 billions This will all be completed on a parcel with no streets, no water and sewer or other infrastructure that has hugely contributed hugely to the blight in this neighborhood and has thus negatively impacted on surrounding neighborhoods /0 Midtown Miami Project The project will also bring: • 700 full-time construction jobsover 7-year period • 2,500 permanent jobs • Over $415 million of additional real property taxes over the next 30 years • Additional personal property taxes, sales taxes, and other revenues • Spillover impact on surrounding neighborhoods — Allapattah, Overtown, Design District, and Biscayne Boulevard • A place for City residents to shop • Community involvement by strong developers • A project with national recognition • Impact on rating agencies' outlook on the City 0 Midtown MiamiProject Midtown Miami Project What is being requested? • Infrastructure costs alone are estimated to cost over $106 million • Site restraints would prohibit the standard surface parking associated with big box retail, resulting in additional significant increases in costs • The CDD, formed by the developers and approved by the City Commission in November 2003, have requested assistance from the City, together with the County, in the financing of 2,900 surface and structured parking spaces and a public plaza supporting the project's retail components for a cost of $76.6 million • Contributions are totally linked to delivery of completed components and are structured so they will have no impact on the City's General Fund Midtown Miami Project • Approximately $326 million by the end of 2006 • Additional $173 million by the end of 2007 • The parking structure and public plaza will be completed in these first two phases 141 Midtown Miami Project To facilitate the proposed financing from.. the City and County, the Administration will be recommending for your consideration and vote next week: • Authorization for the Manager to execute an Interlocal Agreement ("ILA") between the City, Miami -Dade County and Midtown Miami Community Development District • Under the ILA the City would commit to using its best efforts to designate a Community Redevelopment District having the boundaries of this project only is Midtown Miami Project How will the financing assistance work? • Before the CRD is formed, economic incentive payments will be made, proportionately by the City and the County, based upon completed components • If CRD is formed, tax increment revenues will replace economic incentives payments • All revenues in excess of required annual debt service will be retained by the City and the County, proportionately • Contributions are totally linked to delivery of completed components and are structured so they will have no impact on the City's General Fund Lb Midtown Miami Project In summary, we estimate the project will generate over $400 million of incremental real property taxes over the next 30 years • The City's share of assistance is approximately $100 million • The net return is over $300 million • Before next week's vote —Financial Advisor Review Midtown Miami Project Minority Participation During Construction A condition precedent to signing the ILA will be entering into a minority participation agreement with the developers The developers have already endeavored to include minorities in their project: • To date, 85% of labor -related contracts, totaling nearly $18 million, have gone to minority contractors • Partnered with Puerto Rican Chamber of Commerce to identify contracting and job placement opportunities for minorities • Partnered with South Florida Workforce • Have hired 30 people from the Wynwood community for security - related positions which include health insurance benefits (g Midtown Miami Project • Job Creation and Community Outreach Activities - Willie Lopez, Director of Security and Community Outreach for Midtown Miami 'tl Midtown Miami Project Affordable Housing Program • Biscayne Development Partners, Inc. (BDP) will make available ten (10) units in each building of the eight (8) condominium buildings, for a total of eighty (80) units for affordable housing • BDP has an existing arrangement with HSBC Bank USA to provide for 97% financing to condominium buyers that can be utilized in conjunction with the City of Miami programs for the eight (8) buildings • BDP will contribute closing costs of up to $5,000 per unit • BDP will provide a One Million ($1,000,000) revolving line of credit to a non —profit housing agency to acquire vacant parcels, board up dwellings or other units to rehabilitate or construct affordable housing within the Wynwood and surrounding neighborhoods OA Midtown Miami Project Conclusion • This projects implements the major conclusion of the FEC study and will generate significant positive economic and quality of life impacts to the City and its residents. _2/ Midtown Miami Project