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Update of Lease Negotiations with The Palace Group, Inc. including: (a) Revised site plan; (b) Proposed Residential Operating Standards; (c) Anticipated Financial Terms; (d) Discussion regarding parking program and other outstanding issues.
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On February 28, 2006, under Resolution No. 2006-38, the City Commission authorized the City Manager to issue a Request for Proposals from proposers experienced in developing premier market rate senior housing with specific emphasis on congregate living services, for the private redevelopment of two City owned properties at 45 and 50 Andalusia Avenue. The Request for Proposals was issued on March 8, 2006, with a submission due date of June 8, 2006.
On June 8, 2006 only one proposal was received. The proposal was examined by the Certification Committee, which judged the proposal certified and stated that the conditions of the RFP were met.
On June 27, 2006, the eight-member Evaluation Committee, comprised of representatives from five City Boards, the Parks and Recreation Department, the Business Improvement District, and Assistant City Manager Maria Jimenez, met to hear the presentation of The Palace Group in order to review and evaluate the proposal using the criteria stated in the RFP. After hearing the presentation, reviewing consultant findings, and after questions-and-answers and discussion, the Committee decided unanimously that the project was ready to move forward to the Commission for consideration, with two caveats regarding (1) the proposed percentage of studio units and (2) resident crosswalks and traffic flow.
On July 11, 2006, the City Commission authorized the City Manager to commence negotiations with the Palace Group for the redevelopment of Municipal Parking Lot No. 9 and Municipal Parking Garage No. 5 for a market rate Senior Housing Development.
The City Manager established a negotiation team consisting of the Development Director, National Healthcare Associates as senior housing experts, and Abramson & Associates as real estate development advisors. Weiss Serota Helfman was selected as Special Counsel by the City Attorney.
Per Resolution 2007-15, the City entered into a Memorandum of Understanding with The Palace Management Group, LLC, which outlined "a preliminary understanding as to certain basic terms and issues for the development of the project" (see Attachment 1).
Since then, the City and The Palace have been negotiating final agreements for City Commission consideration which will be presented on August 28, 2007.
Although some language and terms have not yet been finalized, it is appropriate to brief the City Commission on certain essential elements of the draft leases including The Palace At Coral Gables Operational Standards for Residential Building (Attachment 2) and the proposed financial terms (Attachment 3).
A review of the current project design, revised to incorporate the recent acquisition of the Melody Inn Parcel will also be presented by members of the Palace team.
A draft "Operational Standards for the Parking Garage" (Attachment 4) has been included, but finalization of the standards is pending a discussion between the Palace and the City Commission regarding parking technology, which may include Robotic parking. (The draft has been developed based on conventional parking; however, informal discussion at the April 24, 2007 City Commission meeting allowed the Palace Management Group to explore both conventional methods and Robotic parking, and to report their findings back to the City Commission.)
While much of the proposed lease agreements for the Residential Building and the Parking Garage have been prepared, drafting continues on matters related to Insurance, the creation and conditions of a Community Development District, and certain other matters.
A complete draft of the agreements will be forwarded to the City Attorney and City Manager for final review and then forwarded to the City Commission, allowing ample time to review and consider the leases and to be briefed by staff in advance of the
August 28, 2007 meeting.
Consistent with the provisions of the City's Procurement Code, the leases will be presented as an Ordinance on First Reading at the August meeting and will include the findings of the Budget Advisory Board, the Economic Development Board, the Property Advisory Board and relevant City Departments.