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HomeMy WebLinkAboutCRA-R-18-0009 Submittal-SEOPW CRA-Block 55 RFP3 7v/ l -S'ubm I l 1- SEDR A/ CA- lock. 55 1317P RFP 17-02 Issued July 26, 2017 REQUEST FOR PROPOSALS FOR THE DEVELOPMENT OF BLOCK 55 PLAT BOOK "B" PAGE 41 249 NW 6"' STREET, MIAMI, FLORIDA RFP NUMBER 17-02 ISSUE DATE Wednesday, July 26, 2017 SUBMISSION DATE AND TIME Tuesday, October 17, 2017 at 11:00 a.m. At: The Office of the City Clerk City of Miami 3500 Pan American Drive Miami, Florida 33133 DESIGNATED CONTACT Brian Zeltsman, RA Director of Architecture and Development Southeast Overtown/Park West Community Redevelopment Agency 819 NW 2"d Ave, 3rd Floor Miami, Florida 33136 Phone: 305-679-6827 Fax: 305-679-6835 Email: bzeltsmanamiamieov.com Website: hllo:I/www.miamicra.com/seonwcra'paees/nrocurement.html Evaluation Criteria KEON HARDE MON Board Chair Submitted into the public record in connection with Item I on-3-1-18 Todd B. Hannon Clerk of the Board CLARENCE E. WOODS, III Executive Director The factors outlined below shall be applied to all eligible proposals. Note: fulfillment of project goals; quality and sensibility of' design and compatibility with the neighborhood and immediate surrounding will be considered when reviewing the proposals. All references will be subject to appropriate evaluation. EVALUATION CRITERIA POINT VALUE Development Concept 20 Feasibility of the financing plan and realistic ability to complete the project within the proposed schedule and with the fewest fmancial contingencies 20 Qualifications & Experience of Development Team, including experience with projects of similar scale and complexity 20 Fulfillment of SEOPW CRA Redevelopment goals; quality and sensitivity of design and compatibility with Overtown and immediate surroundings 30 Financial capability of the Proposer 10 TOTAL POINTS 100 2 RFP RESPONSE #1: Downtown Retail Associates, LLC (Sawyer's Landing) SAWYER'S LANDING 249 NW 6TH STREET, MIAMI, FLORIDA RFP NO. 17-02 I BLOCK 55 LIVE . WORK. PLAY Submitted into the public record in connection with Item on -j Todd B. Hannon Clerk of the Board RFP RESPONSE #i: Downtown Retail Associates, LLC (Sawyer's Landing) LETTER OF TRANSMITTAL October 17, 2017 The Office of the City Clerk I City of Miami 3500 Pan American Drive I Miami, Florida 33133 Attention: Mr. Brian Zeltsman, RA, Director of Architecture and Development Southeast Overtown/Park West Community Redevelopment Agency (SEOPW CRA) Re: Request for Proposals for the Development of Block 55, Plat Book "B" Page 41 249 NW 6th Street, Miami, Florida 33136 (RFP No. 17-02) Dear Mr. Zettsman: It is with great pleasure that we submit our response to RFP No. 17-02. The proposer, Downtown Retail Asso- ciates, LLC (DRA), is a single purpose entity whose Managers are Michael Swerdlow and Alben Duffle. Both Michael and Alben will be the master developers for the proposed project. For more than 40 years, Swerdlow -controlled entitles have demonstrated their abilities in a wide range of suc- cessful endeavors ranging from mixed -use developments In the Northeast to complex infill developments In South Florida. We have constructed over 10 million square feet of local commercial properties and developed land for 10,000 homes and condominiums including such Immense projects as the Dolphin Mall, Oakwood Plaza, Lightspeed at Beacon Tradeport, Biscayne Landing, Westlake Village and Oakddge. Alben is a prominent and respected local developer who began his career as a banker followed by a successful career in Miami -Dade County government. Since leaving his govemment positions, he joined forces with Michael in the Biscayne Landing project (described within our submittal). Alben was a codeveloper of the City View proj- ect in Miami, Chairman of the Board of the Postmaster Apartment project, a senior housing facility, and Ward Towers, an assisted -living facility, both located in Miami. Prior to retiring from Miami -Dade County in 1995, Alben was the lead staff person in redrafting the ordinance that created the original minority program to include wom- en, Hispanic and small business enterprises. The County Commissioner approved the redraft in eady 1995 and hence broaden the opportunities available to minority companies and others. DEVELOPMENT CONCEPT: For Block 55, we propose an urban mixed -use project—Sawyer's Landing —de- signed to meet the worklemployment, shop, live and entertainment goals of Miami 21 and the SEOPW CRA. It includes the following mix of uses: 15,000 square feet of street front, ground -level, community retail and restau- rant space; a ground Floor 30,000-square-foot fitness center; a 50,000-square-foot entertainment use; and 125,000 square feet of large value retailers for a total of approximately 220,000 square feet of leasable retail and entertainment space, as well as 115 workforce housing units and sufficient parking to meet the needs of the tenants for the proposed uses. At street level, the Second Avenue sklewalks will be widened to allow outdoor seating for the restaurants and coffee shops, and Sawyer's Walk will be improved to create an attractive and In- viting place to stroll, sit, relax and enjoy. The project design both recognizes and incorporates the cultural heritage of the neighborhood and the aesthetic goals of the CRA. This project will anchor the community and inspire and accelerate additional development in the SEOPW CRA. DRA's proposal promotes the vision of the SEOPW CRA redevelopment plan and responds to the community's needs by providing Live, Work, Play components: • LIVE: 115 modem workforce housing apartment units. • WORK: more than 390 permanent jobs, plus additional construc- tion jobs. • PLAY: value retail component with health and fitness, entertain- ment, and food/restaurants. SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN LIVE ,;dni Gl PLAY 3 Submitted into the public record in connection with Item / on 3-1 _j Todd B. Hannon Clerk of the Board PROJECT FEASIBILITY: We know Sawyer's Landing will be successful because we have already received commitments from prospective tenants and operators. Over 160,000 square feet out or approximately 220,000 square feet of commercial space have been committed to national, credit -worthy tenants. We have executed letters of intent (LOI) from these tenants, They contain confidential information and therefore cannot be in- cluded in this submittal, but may be viewed, by appointment, at our office. We also have several proposals from well-known outdoor advertising companies for the proposed signage. DRA will contract with the Miami Parking Authority (MPA) to acquire and operate the parking garage. A local Overtown church —Greater Bethel A.M.E. Church —will serve as our local community liaison (LCL). The church Is part of the fabric of the Overtown community and will guide our team to realize our small business and job placement programs. Further, our financial partner, The Baupost Group, has the resources and ability to fund 100% of the project costs with eq- uity. The project is designed to be permitted via normal administrative processes. Finally, although we are aware that certain governmental subsidies may be available to finance the construction of this project, it can be financed conventionally, with only private funding or, as described above, financed with 100% equity. If we are the suc- cessful bidder, we see no Impediment or contingencies to completing the project on schedule. QUALIFICATIONS AND EXPERIENCE: Our team has vast experience and a successful track record of com- pleting projects of this magnitude and greater. We have assembled a team of local contractors, architects, plan- ners, economists, attorneys and consultants with great expertise and experience in their respective fields and in projects of this nature and size. Their resumes are Included in our response. Please note these are local firms with local employees with ties to the community. They, too, live, work and play in the greater Miami area and share the goals and aspirations of everyone in the community and in the SEOPW CRA. SEOPW CRA REDEVELOPMENT GOALS: Our development concept embraces the principles and goals set forth In the SEOPW CRA Redevelopment Plan (see Section 4) as follows: • The design respects the community's history and heritage through a building cladding system that will include historical images of the OverlownlParkwest area. • It expands the neighborhood tax base, not only by investing In excess of $130 million in Block 55, but be- cause of the unique mix of uses not currently available to the community; this, in tum, Increases the value, desirability and viability of all the other nearby properties. • The demand for workforce housing In South Florida is significant and growing. Sawyer's Landing subsidizes and provides new and attractive workforce housing, which is not currently available to the community. • The project will create numerous temporary Iocaf construction jobs, but more significantly, when completed, the project will create more than 390 permanent jobs for the local community. DRA will designate a lo- cal community liaison (LCL), which will remain active throughout the life of the project. • DRA will provide numerous job fairs and a management internship program that will focus on educating, hiring, and promoting local talent. • There are no value centers within the SEOPW CRA's boundary and a retail shortage within a 5-mile radi- us to serve the SEOPW CRA community. The retail, entertainment and dining establishments, by their nature, will promote the local community and attract people from outside the immediate neighborhood to spend their disposable income In Overtown. • The new construction, permanent jobs, shopping, dining, entertainment and workforce housing will improve the quality of life for all neighborhood residents. Please see Section 4 for detailed information on how our team fulfills the SEOPW CRA Redevelopment goals. FINANCIAL CAPABILITIES: Our financial partner, The Baupost Group, is an investment adviser founded in 1982, which currently manages approximately $30 billion of equity capital on a discretionary basis and has ap- proximately $11 billion of liquidity (cash and cash equivalents). We have previously worked together, and they are willing and able to fund what is needed to complete this project, subject to appropriate due diligence. Further, our intention to presale the parking facility and residential tower greatly simplifies the financing requirements. We appreciate the opportunit'to be considered for this project and hope you will view our proposal favorably. Sincerely,` /-",' Michael Swerdlow Alben Duffle Managing Member Managing Member SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN 4 4 RFP RESPONSE #i: Downtown Retail Associates, LLC (Sawyer's Landing) DEVELOPMENT CONCEPT PROJECT DESCRIPTION, SITE PLAN, RENDERINGS Proposed Sawyer's Walk Revitalization Layout - — RESTORE➢R4nNG EMMY MONUMENTS —CO MGSISEWAu( TREES to REVARY SAWYER'S WALK FEATURES V Mature trees relocated here from the existing site. ✓ Existing old growth trees to remain on Sawyer's Walk. ✓ Restore and enhance existing Sawyer's Walk entry monuments, new signage. ✓ New pavers and hardscape for open markets, gathering, performances and extension of retail area. ✓ Upgrade lighting, seating, and plaza furniture. SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN PROPOSED SAWYERS WALK REVITALIZATION LAYOUT N SAWYERS WALK EXPERIENCE Submitted into the public record in connection with Item ) on 3- %'/d Todd B. Hannon Clerk of the Board RFP RESPONSE #1: Downtown Retail Associates, LLC (Sawyer's Landing) DEVELOPMENT CONCEP`` PROJECT DESCRIPTION, SITE PLAN, RENDERINGS View Looking Southwest from 7th Street to the Residential Building and Entry to Sawyer's Walk SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN Submitted into the public record in connection with Item / on .j'%-% Todd B. Hannon Clerk of the Board RFP RESPONSE #i: Downtown Retail Associates, LLC (Sawyer's Landing) DEVELOPMENT CONCEPT PROJECT DESCRIPTION, SITE PLAN, RENDERINGS View Looking Northwest from 6th Street to the Residential Building — Close Up View Looking Southwest from 7th Street to the Residential Building and Entry to Sawyer's Walk SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN 26 DEVELOPMENT CONCEPT PROJECT DESCRIPTION, SITE PLAN, RENDERINGS DEVELOPMENT PARTNERS/TENANT COMMITMENTS Use Occupied Commitment Retail A Dining/retail 'Not yet on market Retail B Fitness/health club Executed LOI Retail C Pet supply store Executed LOI Retail D Municipal office CRA/offce Retail E Dining/retail 'Not yet on market Level 2 'Value retail Executed LOIs Level 3 Value retail 'Not yet on market Level 4 'Entertainment Executed LOI Residential development Workforce housing Workforce housing rentals Parking garage 24/7 garage operations Turnover to MPA Notes ' Being held off market for local community opportunity until completion of a Development Agreement. ' Being held off market until completion of a Development Agreement. The floor is split between two value retailers. ' An entertainment establishment takes up the entire floor. EXECUTED COMMITMENTS NO FINANCIAL CONTINGENCIES NEEDED. Submitted into the public record in connection with Item Lon 3 1-lS Todd B. Hannon Clerk of the Board SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN 27 RFP RESPONSE #1: Downtown Retail Associates, LLC (Sawyer's Landing) DEVELOPMENT CONCEPT A proposed transaction structure for the project i.e., purchase, lease, or ground lease, specifying the financing structure, such es purchase price, lease payments, etc. We propose a fee simple, all cash acquisition of the site for a shovel -ready project. Details are included below. Purchase Price: $15,000,000.00 (Fifteen Million Dollars), all Cash Payable at Closing. Additional Purchase Price: A conbibution at no cost to the SEOPW CRA of approximately 8,500 ground level retail space square feet (inclusive of a mezzanine) fronting on NW 6Ih Street. The CRA will be responsible for its own CAM, taxes and Insurance. The space shall be delivered as an unfinished shell. The benefit of title to this space exceeds $3,000,000.00 (Three Million Dollars). The benefit of the Ownership of this space is approximately $3 million (if the space is rented at $17 per square fool, which is approximately 50% of our normal rent, and sold at a 5% return, the value of this space Is approximately $3 million). This above additional financial benefit to the SEOPW CRA results n a total Purchase Price of pproximatey S18,000,000.00 (Eighteen Million Dollars) Other Buyer Obligations: 1. The construction of 115 workforce housing units. 2. Upon executing the Development Agreement, Buyer shall diligently pursue the design and permitting of Sawyer's Landing with the goal of obtaining Building Department approval within 2 years of exacting the Development Agreement. 3. Buyer shall commence construction of the Proposed Improvements within 12 months of Closing. 4. Buyer's contractor shall give priority In awarding contracts to neighborhood and Miami -Dade County Contractors. 5. Buyer's contractor shell give priority in hiring to neighborhood residents and to Miami -Dade County residents. 8. Buyer shall organize a minimum of 2job fairs to encourage local residents to be hired by the subcontractors performing the construction work and to encourage local residents to be hired by the retailers who will occupy the premises. 7. Approximately $500,000 of improvements to Sawyer's Walk, SAWYER'S LANDING: LIVE, WORK, PLAY IN OVERTOWN 41 Submitted into the public record in connection with Item / on 3 /-/3 Todd B. Hannon Clerk of the Board RFP RESPONSE #2: Lancelot Miami River, LLC (Overtown Central) Overtown Central BUILDING A Better Community CREATING OPPORTUNITIES FOR COMMUNITY EMPOWERMENT Presented By: Lancelot Miami River LLC, an Affiliate of Adler Group Address: 3150 SW 38th Street, Suite 530, Miami, FL 33146 Phone/Email: 305-392-4194 /jraiffe@adlergroup.com Contact Person: Jonathan Raiffe Submission Date: October 1r, 2017 Proposal Name: Overtown Central RFP #: 17-02 Submitted into the public record in connection with Item 1 on 3-/-1$ Todd B. Hannon Clerk of the Board RFP RESPONSE #2: Lancelot Miami River, LLC (Overtown Central) Overtown Central 1 , LETTER OF TRANSMITTAL October 16, 2017 City of Miami City Clerk's Office 3500 Pan American Drive Miami, Florida 33133 Re: ADLER GROUP'S RESPONSE TO RFP N 17-02 — "BLOCK 55" To Whom It May Concern: Lancelot Miami River, LLC, an affiliate of Adler Group (hereinafter jointly, "Adler"), is pleased to submit Its proposal to the Southeast Overtown/Park West Community Redevelopment Agency ("Agency" and/or "SEOPW CRA") for the Agency's parcel of land located at BLOCK 55 PLAT BOOK "8" PAGE 41249 NW 6TH STREET, MIAMI, FLORIDA ("Property"). Adler's proposed project — Overtown Central — would provide a comprehensive mixed - use development over two phases to potentially Include a combination of up to 800 rental apartment units (workforce, affordable and market rate), a new +/- 300,000 square foot office building, and 30,000 sq. ft. of commercial/retall space (jointly hereinafter, "Overtown Central, "the Project" and/or "the Proposal"). The Project will deliver a mixed -use setting that is functionally and aesthetically integrated with the existing surroundings and which will provide much needed mixed -Income housing for the local community, complimentary retail and a community center. The Project will increase activity in this area of Overtown by creating a unique destination where the general public, employees, employers, workers, residents and visitors can live, work, and play. In Phase I of the Project, Adler would develop 378 residential units In a mix of incomes (market rate, workforce, and affordable), along with 16,000 SF of commercial/retail space. In Phase II, Adler would have the option of providing either (1.) a +/-300,000 SF office building and 25,000 SF of commercial/retail, or (2.) 378 residential units in a mix of incomes (market rate, workforce, and affordable) and 16,000 5F of commercial/retail space. Adler, in its development of the Project, will be guided by the six (6) goals and fourteen (14) principles set out by Dover Kohl & Partners in their SEOPW CRA Redevelopment Plan (as amended). And to that end, Adler will seek to, at a minimum, preserve community heritage by seeking out and accommodating local cultural events, institutions, and businesses; expand the tax base through the use of smart growth planning principles; create infill housing with affordable housing units; create jobs, and therefore employment opportunities, within the community via the commercial uses; promote and market the community; and improve the quality of Ilfe for residents of the immediate and surrounding areas through green spaces of an urban character and attractive buildings. ADLER GROUP RFP Ft17-02 11n,Ea Submitted into the public record in connection with Item on 3-1-IX' Todd B. Hannon Clerk of the Board Overtown Central Adler Group, led by Michael M. Adler, is a multigenerational full service real estate company, headquartered In Miami, Florida with an impeccable reputation and a deep understanding of the real estate industry. Adler Group is comprised of three core operating businesses, Adler Development, Adler Realty Services and Adler Kawa. Throughout its 50-year history, Adler Group has developed and acquired over 20 million square feet of industrial, office, and retail real estate and over 8,000 residential units. Adler is a credible, capable firm that has the capacity to execute and successfully complete Overtown Central on time and on budget. Adler Is committed to the Protect from both an economic and community development standpoint. Asa truly local player, Adler feels a strong connection to Miami, has a vested interest in the Project, and is passionate about contributing to its development. Adler recognizes and appreciates the important responsibility that comes with this opportunity and is committed to ensuring this project is a success for the SEOPW CRA, City of Miami and local community. Adler has experience executing successful commercial urban core developments within the City of Miami for over 30 years. To that end, Adler shall work collaboratively with the SEOPW CRA with the goal of developing an aesthetically pleasing, community -oriented, multi -use project at Block 55 that will far exceed SEOPW CRA's expectations. Adler will do so by bringing its development expertise, utilizing Its multitude of local contacts, and by soliciting proposals from local businesses in order to end up with a robust development team comprised of local architects, civil engineers, landscape architects, land use attorneys, retail leasing consultants, and environmental/sustainability consultants. Adler and Its affiliates have decades and multiple generations of experience developing, constructing, and managing commercial space In Miami and across the United States. Adler has a proven track record In its ability to maximize value through cost-effective design and construction to deliver the highest quality projects on time and on budget. Adler has the ability to secure the required financing necessary to complete the project through relationships with a prestigious list of institutional and private investors and nationally recognized financial lenders. Adler prides itself on successful partnerships and a commitment to public private partnership development programs and is excited for the opportunity to deliver Overtown Central to the SEOPW CRA. Very truly yours, Michael M Adler ADLER GROUP RFPN17-02 21r'ap_e 10 RFP RESPONSE #2: Lancelot Miami River, LLC (Overtown Central) Overtown Central ' To.., • 11,60 0SF 1..,191 +r.1 I...Ms 10.201111,” 1. ADLER GROUP RFP p 17-02 Twa 8. 111099 Ca l.wh 919meno.:) L...h 10.10110*131. 1 271PzEa Submitted into the public record in connection with Item 1 on 3 -H -I S Todd B. Hannon Clerk of the Board 11 RFP RESPONSE #2: Lancelot Miami River, LLC (Overtown Central) Overtown Central PROPOSAL STRUCTURE With respect to the deal structure, Adler proposes to enter Into a ninety-nine (99) year ground lease with the SEOPW CRA ("Ground Lease"). The Ground Lease would be structured as follows: 1. Upfront payment of $500,000. 2. Five (5) annual payments of $250,000 for years one (1) through five (5) of the ground lease —a total of $1.25 million. 3. Five (5) annual payments of $350,000 for years six (6) through ten (10) of the ground lease — a total of $1.75 million. 4. Payment of participation rent of 3% of gross revenue generated by the development in accordance with the terms of the resulting agreement. An option to buy out the ground lease of Block 55 for the net present value, as of the execution date of the Development Agreement, of $10,000,000 at a 4%discount rate, less any previously made payments ("Buyout Option"). Adler firmly believes in its vision for the Project and our ability to deliver the proposed development concept. While Miami is experiencing rapid growth with over 10,000 units planned or under construction in Greater Downtown Miami, there exists significant long term demand to justify construction of+/- 800 mixed -income mixed -use residential units over the course of the proposed two phases. Given Miami's economic growth over the last decade coupled with Block 55's proximity to All Aboard Florida, Miami World Center, and 1-95, Adler believes that Block 55 would make an ideal location for additional office space. Should Adler develop +/- 300,000 square feet of office space for the private sector, the revenue share to the SEOPW CRA would far exceed that of Phase Its additional +/- 375 residential units. As an example, the annual 3% revenue share on Phase 11's+/-375 residential units (upon stabilization) runs at +/- $215,000 annually. A new office building in downtown Miami, presently commands approximately $45 per square foot per year'. Assuming (i.) a conservative $40 PSF rent, and (ii.) that 85% of the total +/- 300,000 leasable square feet is occupied, then the 3% annual revenue share to the SEOPW CRA would be+/- $306,000. Thus, having an office building on site would result In a revenue share that would be over 40% larger when compared with that of the residential units. The office building is also estimated to have a population density of four (4) employees per 1,000 SF or 1 employee per 250 SF. To that end, the office building would deliver a daytime population to the area of over 1,200 people on a daily basis. The demand for office space, in the downtown Miami, Is not limited to the private sector. The City of Miami and the Proposer, Lancelot Miami River, LLC, ("Lancelot") are In discussions to develop, a new administrative headquarters for the City of Miami, consisting of +/- 300,000 square feet of office space. The City of Miami has indicated that it has interest in Block 55 for such a purpose (see enclosed reference letter from the City of Miami date 10/16/17). Adler understands and appreciates the ' According to Jones Lang LaSalle IP, Inc.'s 012017 Office Statistics Class -A office rents In Downtown are just below $45 PSF. ' Managing Director dill. noted that "Rates In Class A office buildings are reaching historical highs. We're steering Into uncharted territory en pricing.... see, http:/Avww.miomlheruld.comin ews/husinese/real.estote- news/artkk151947357.Mmlkstorylinxapy also predict rents at between $60465 PSFet the Class -A Miami World Centel Mike. ADLER GROUP RFP R17-02 12)P age Submitted Into the public record in connection with Item I on 3-1-IS" Todd B. Hannon Clerk of the Board Overtown Central uniqueness of having a committed long tens tenant at Block 55. Should the City of Miami formally Identify Block 55 as a desired location for their new administrative headquarters, Adler would submit the opportunity to SEOPW CRA for consideration. If the City of Miami Commission, thereafter, formally decides to place their new administrative headquarters at Block 55, then prior to the commencement of construction, Adler would exercise Its Lease Buyout Option and pay to the SEOPW CRA a one-time lump sum payment of the net present value of $10 million less any previously made rent payments to the SEOPW CRA. An office building along with the complementary retail and residential components would provide the SEOPW CRA with a tremendous opportunity to have a 24/7 development use with a critical mass of daytime, evening, and weekend population. The development potential of the project would be realized In the shortest amount of time with a significant source of revenue being earned by the SEOPW CRA. ADLER GROUP RFPR17-02 13)Page