TRANSIT-ORIENTED DEVELOPMENT PROPOSAL
FOR
FLAGLER PROPERTY
AT
GOVERNMENT STATION
MARCH 31, 2010
1
Presented by:
Kelli Nelson
Benjamin Boies
Jessica Joly
Walter Ojeda
Monica Hands
Robert Knuth
Jared Chassen
2
Table of Contents
Executive Summary 3
History of Site 7
Concept 8
Identifying Government District 9
Identifying Medical ...
3
Executive Summary
Project Location The subject property consists of approximately eight acres in Miami’s Downtown
Centra...
4
Tract “A” – The State Attorney’s Office, will total 153,200 square feet of net
leasable Class-A office space and 8,800 s...
5
Investment Structure Flagler’s investment structure will be based on 10-year, fixed-rate leases, to both
Miami-Dade Coun...
6
Loan to Cost 77%
Loan to Value 80%
Interest Rate - Construction 7%
Interest Rate - Perm 7%
Construction Loan/Perm 166,49...
7
History ____________________ ____
The subject property has always been utilized as a transit oriented development, as it...
8
Concept_________ ____________________________
Nova Development has embarked on a process to develop the five parcels adj...
9
Identifying the Government District_______________________
Left: By color-coding the surrounding current property
uses, ...
10
Identifying the Medical District_________________________
Map 3: Aerial View of Medical District
Current Uses The Miami...
11
Site Details_____ ___________________
Boundaries The subject property is located on the east side of the Miami-Dade Cou...
12
Existing Land Use___ ________________________
Government Center Tracts Tracts “A,” “B” and “C” are currently under leas...
13
Existing Land Use___ ________________________
Map 6: Aerial View of Freight Track, Tracts “D” and “E”
The next photo il...
14
Market Analysis____________________________________
Office: Miami CBD 2009 Available Rental Space 9,213,875 SF
Miami CB...
15
Market Analysis_____________________________________
Graph 3: Downtown Miami Office Market Report, CoStar Report
16
Market Analysis_____________________________________
Retail Miami CBD Available Rental Space 5,290,912 SF
Miami CBD No....
17
The Importance of Government Centers & Jails Downtown_
Government Facilities Downtown
The relocation of government faci...
18
Miami-Dade Transit ____
Existing Transit
The Government District is currently served by Miami-Dade Transit’s Metrobus, ...
19
Miami-Dade Transit ____
Future Transit Development
The location and configuration of Miami-Dade County's urban growth t...
20
Miami-Dade Transit __ __
City Center Station
In regards to the location of the future city center station, certain qual...
21
Miami-Dade Transit __ __
Prospective 8th Street City Center Station Site
Diagram 1: Configuration of Prospective City C...
22
Miami-Dade Transit __ __
Regional Park and Ride Station
This regional park and ride is intended to serve areas beyond t...
23
Miami-Dade Transit __ __
Prospective 8th Street Regional Park and Ride Site
M
Diagram 3: Configuration of Regional Park...
24
Miami-Dade Transit______________ ________
Incorporation of Transit Design
Diagram 4: Potential Transit Center Design
Al...
25
Miami-Dade Transit______________ ________
An Iconic Grand Central Station should be considered for the site. Such a des...
26
Plan Approval Process ________
Summary The scope of the project requires a Major Special Use Permit (MSUP), as
defined ...
27
Design______________ ________
Proposed Development
The vertical massing illustrates how the structures will appear from...
28
Design______________ ________
Tract “B”
Tract "B" will house an 8-level, 974-space parking facility. 19,000 SF of retai...
29
Design______________ ________
Tracts “A” and “B”
The site plans for Tracts “A” and “B”
illustrate how the two adjacent ...
30
Design
Design 6: State Attorney’s Office
Design 7: Parking Facility
Located on tract “A”, The State Attorney’s
Office h...
31
Design______________ ________
Tract “C”
The site plan for Tract “C” has two
uses: the southern half will be
used for th...
32
Design______________ ________
Design 9: Aerial View Tract “C”
Design 10: Aerial View Tract “C”
The south half of Tract ...
33
Design______________ ________
Conclusion
State Attorney's
Office
SFECC Station
Ground Floor Retail
Parking Garage
Count...
34
Financials – State Attorney’s Office 10 Year Cash Flow________
35
Financials – State Attorney’s Office Sources
Sources & Uses – State Attorney’s Office
Loan Equity Cost Cost/SF Loan/SF
...
36
Financials – Court House 10 Year Cash Flow___________________ ___
37
Financials – Courthouse Office Sources
Sources & Uses Court
Construction Cost Analysis Court
Loan Equity Cost Cost/SF L...
38
Financials – Parking Garage 10 Year Cashflow________________ ___________
39
Financials – Parking Garage Sources
Construction Cost Analysis Parking Garage
Financials – Parking Garage Supplemental ...
40
Financials – Leveraged IRR_________________________________ ___________
41
Financials – Unlevered IRR_________________________________ ___________
42
Land Evaluation – Sales Comparison Approach__________
Price per square foot method:
The price per square footage method...
43
of 44

NAIOCP Presentation

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Transcripts - NAIOCP Presentation

  • 1. TRANSIT-ORIENTED DEVELOPMENT PROPOSAL FOR FLAGLER PROPERTY AT GOVERNMENT STATION MARCH 31, 2010
  • 2. 1 Presented by: Kelli Nelson Benjamin Boies Jessica Joly Walter Ojeda Monica Hands Robert Knuth Jared Chassen
  • 3. 2 Table of Contents Executive Summary 3 History of Site 7 Concept 8 Identifying Government District 9 Identifying Medical District 10 Site Details 11 Current Use 12 Market Analysis 14 Importance of Government Centers Downtown 17 Transit Information 18 Plan Approval Process 26 Design 27 Financials 34
  • 4. 3 Executive Summary Project Location The subject property consists of approximately eight acres in Miami’s Downtown Central Business District. The North boundary is NW 8th Street, the South boundary is NW 1st Street, the East boundary is NW 1st Avenue and the West boundary is the Metro rail line. Problem Definition How to create value and long-term revenues from an 8 acre former train station site, owned by Flagler for over 100 years, and currently proposed as the terminus station of a tri-county rail transit line. Market analysis indicates demand for transit-oriented public facilities, but no market support exists for private office, residential or large scale development uses. Proposal In an effort to consolidate government services, NOVA Development proposes to relocate three undersized and out of place Miami-Dade County facilities from the Hospital District to Flagler’s site in the Government District. At this site, innovative buildings can meet present and future facility needs while providing enhanced access to multimodal transit. The facilities to be relocated are: The County & State Courts building, the State Attorney’s Office, and the Miami-Dade County Jail. Relocation concentrates these uses in the center of State, County, and Federal Government services to a transit-oriented development from an isolated 20 acre site in the medical district two miles west. Relocation creates a market for Flagler to develop new offices and services directed towards transit use for Miami-Dade County and the State of Florida, and relocation also provides a site and funding mechanism to Miami-Dade County for the development of a replacement jail. Nova’s proposal will be developed by Flagler Development in one (1) phase over a four (4) year period. Flagler will develop a replacement County Court building, State Attorney’s office, retail, and a parking garage on a lease/purchase basis to the County and the State. The County will develop and construct a replacement jail on a 10-year ground lease from Flagler, leveraging the vacated 20- acre hospital district parcels valued at $87,120,000 to fund construction and relocation. Development of these facilities at this transit hub would reduce development costs for parking, and allow for each building’s connection to the County’s central chiller system, which would reduce facility construction and operating costs. Development Program The site is comprised of 8.3 acres in five separate parcels, Tracts “A,” “B,” “C,” “D,” & “E.” Tracts “D” and “E” (3.15 acres) are proposed to be sold for as a rail terminus for the South Florida East Coast Corridor Station. These tracts will be sold to the rail authority for $130.00 per square foot; totaling $18,000,000. The sale proceeds are used as equity for the project. The remaining 5.15 acres are proposed for development as follows:
  • 5. 4 Tract “A” – The State Attorney’s Office, will total 153,200 square feet of net leasable Class-A office space and 8,800 square feet of net leasable ground floor transit oriented retail. The office lease rate is $32.00/SF, NNN, fixed for 10 years. There will be a purchase option at the end of year 10 at a defined price or, a 10-year lease extension a defined rate. During the lease period, Flagler retains ownership and leases the retail at $26.00/SF, gross with one percent annual increases. The retail will be included in the purchase option. Tract “B” – The parking garage will consist of 974 spaces situated on eight levels with 19,000 square feet of ground level retail. Flagler will retain ownership, manage, and lease the garage and retail. Eighty percent of the parking garage will be leased to the County at $80.00/SF per space per month. Twenty percent will be operated by Flagler as public parking for $5.00/hour. There will be a purchase option at the end of year 10 at a defined price, or a10 year lease extension at a defined rate. The parking garage and retail will be included in the purchase option. Tract “C” – The County and State Courthouse will be constructed on the southern half of Tract “C.” It will consist of 500,000 square feet of net leasable Class-A office space. The court building will be leased at $32.00/SF, NNN, fixed for 10 years. There will be a purchase option at the end of year 10 at a defined price, or a 10- year lease extension at a defined rate. The County Jail will total 610,000 square feet and will be developed, financed, and constructed by Miami- Dade County on the 66,000 square foot site ground leased at $13.00/SF gross, fixed for ten 10 years. There will be a purchase option at the end of year ten 10 at a defined price, or a 10-year lease extension a defined rate. Tracts “D” & “E” – These two sites will be reserved for the anticipated development of the South Florida East Coast Corridor Station. These sites are approximately 3.15 acres, and 137,214 square feet will be sold at $130.00/SF to the rail authority. Sale proceeds will be invested into the project as part of the land equity. Site Plan Tract “A” Tract “B” Track “C”
  • 6. 5 Investment Structure Flagler’s investment structure will be based on 10-year, fixed-rate leases, to both Miami-Dade County and the State of Florida, for the offices, courts and parking facility. The jail site will be ground leased. Total equity required is $56,450,229. Equity is comprised of the following: Land Value $20,322,510 36.00% Tract D & E Sale Proceeds $18,000,000 31.89% Cash Investment $18,127,719 32.11% Total Equity Investment $56,450,229 100.0% Only $18,127,719 in cash equity needs to be raised. Annual net cash flow before tax is $9,473,979, or six (6) percent per year cash on cash. At the end of the ten (10) year term, the County’s option to purchase the development yields before tax proceeds from the investment of 31,997,793.
  • 7. 6 Loan to Cost 77% Loan to Value 80% Interest Rate - Construction 7% Interest Rate - Perm 7% Construction Loan/Perm 166,494,240 Total Soft Costs & Financing 25,151,959 Total Hard Costs 177,470,000 Total Project Costs 202,621,959 Land Equity 20,322,510 Cash Equity 18,127,719 Equity - Tract D & E Sales Proceeds 18,000,000 Total Equity 56,450,229 Net Cash Flow Before Debt Service 22,766,262 Net Cash Flow After Debt Service 9,473,979 Net Cash Flow 10 Years 94,739,790 Option Value - Year 10 236,041,528 Less Cost of Sale 4,720,831 Less Mortgage Balance 142,872,675 Net Sales Proceeds 88,448,022 Equity Returned 56,450,229 Net Profit on Sale 31,997,793 Net 10 Year Profit 126,737,583 Cash on Cash Return 699% Return on Equity 225% Investment Structure Construction Summary Equity Required Summary of Cash Flows Sale of Properties Conclusion As proposed, the investment monetizes on 100 years of equity in the land to leverage $18,127,719 in development value and fund vital public infrastructure that will realize the vision of Miami’s Government Center as South Florida’s transit hub for the next generation. Miami-Dade County will realize its 30-year dream of consolidating its facilities at the Government Center and constructing desperately needed new infrastructure for courts, offices and corrections at a key transit hub that will drive and support transit. Miami-Dade County will also have the opportunity to finance this infrastructure by monetizing land that can be used to develop the next Scripps Institute, a bio-medical job and research facility.
  • 8. 7 History ____________________ ____ The subject property has always been utilized as a transit oriented development, as it formerly served as the location of the historic Miami Railroad Station. Built in 1896, the Miami Railroad Station became one of several main hubs to service the main hubs of Henry Flagler’s Florida East Coast Railway (FECR) system that stretched from Jacksonville to Key West. Although Henry Flagler was the leader behind the FECR system, the construction of a station in Miami was the result of persuasion by two prominent local landowners, Julia Tuttle and William Brickell. An agreement between Tuttle, Brickell and Flagler was reached on September 7, 1895 and included both Tuttle and Brickell offering Flagler half of their holdings, both north and south, of the Miami River. Seven months later, on April 15, 1896, the railway track reached completion at Biscayne.. Henry Flagler further developed the area surrounding the Miami Railroad Station, through the dredging of a channel, the building streets, the instituting of water and power systems and the financing of Miami’s first newspaper, the Metropolis. The Miami Railroad Station was located near the Dade County Courthouse, and became an important fixture to Downtown Miami. In the early 1960s, friction between the City of Miami and the FECR system arose over disagreements on passenger train travel. After continuous insistence from the City of Miami, and the stoppage of passenger train travel, the Miami Railroad Station was demolished on November 12, 1963. Left: 1930s SE view with FECR station lower left with County Courthouse commanding the skyline Left: 1930s NW view from the County Courthouse with the FECR station at the center
  • 9. 8 Concept_________ ____________________________ Nova Development has embarked on a process to develop the five parcels adjacent to the Miami-Dade County Government Center, currently owned by Flagler Development Company. The process of this development is as follows:  Relocate the existing County Jail, County Court Building and State Attorney’s Office currently located in the Miami-Dade Hospital District to the subject parcels.  The exodus of these buildings will result in approximately twenty (20) acres available for purchase, valued at $87,120,000, to the private sector, which will assist Miami-Dade County to lease purchase these newly constructed facilities: o A State Attorney’s building, located on Tract “A,” which will be comprised of approximately 153,200 SF accompanied by 8,800 SF of retail space located on the ground level; o An eight-level, 974-space parking facility, lined with 19,000 SF street front retail, located on Tract “B;” o A court building located on Tract “C,” which will be approximately 500,000 SF.  The aforementioned buildings will be constructed by Flagler Development in one phase, approximating four (4) years in time, utilizing the commitment of State and County agreements. Upon completion, the County will relocate to the new facility under a ten year, NNN lease.  A County correctional facility will be constructed on the northern section of Tract “C,” through the utilization of a ground lease, which will provide an income stream to Flagler Development from Miami – Dade County.  The two remaining parcels, Tract “D” & Tract “E,” will be reserved for the anticipated development of the South Florida East Coast Corridor Station. Map 2: Aerial View of Hospital and Government Districts
  • 10. 9 Identifying the Government District_______________________ Left: By color-coding the surrounding current property uses, it is evident there is a prevalence of government uses. Highlighted in blue are Miami-Dade County uses, red indicates Federal uses, purple indicates City of Miami uses, and orange indicates State uses Left: When all government uses are then highlighted in red, it is apparent that the subject site, highlighted in blue, is the proverbial “hole in the donut.”
  • 11. 10 Identifying the Medical District_________________________ Map 3: Aerial View of Medical District Current Uses The Miami-Dade Medical District is currently home to Jackson Memorial Hospital, Miami- Dade Community College’s Medical Center Campus, the University of Miami’s Health Center, and the Miami Health Center VA Care System. In addition, the Medical District also includes the State Attorney’s Office, the Miami-Dade County Courthouse, and the Miami-Dade County Jail. Summary By relocating the county facilities that are currently within the medical district into the government district, value is added to both the city and the county. In consolidating government uses, synergy is achieved, through more efficient operations, and it also allows for potential expansion of the medical district. By vacating the government owned parcels in the medical district, Miami-Dade County will benefit from private enterprises that direly need to expand. An expansion will result in additional tax and employment opportunities for the city and county, among other benefits. Potential future uses for the site include an expansion of the University of Miami medical center, a new biomedical research facility or other educational research.
  • 12. 11 Site Details_____ ___________________ Boundaries The subject property is located on the east side of the Miami-Dade County Government Center building – the North boundary is NW 8th Street, the South boundary is NW 1st Street, the East boundary is NW 1st Avenue and the West boundary is the Metrorail line. The site consists of five parcels which are herein forth referred to as the following tracts: Tract "A" 195 NW 2nd Street 34,641 S.F. Tract "B" 200 NW 1st Avenue 55,686 S.F. Tract "C" 430 NW 1st Avenue 132,052 S.F. Tract "D" 535 NW 1st Avenue 58,636 S.F. Tract "E" 605 NW 1st Avenue 79,500 S.F. Site Map: Map 4: Aerial View of Flagler Site Tract "C" Tract "C" Tract "D" Tract "E" Tract "B" Tract "A"
  • 13. 12 Existing Land Use___ ________________________ Government Center Tracts Tracts “A,” “B” and “C” are currently under lease with the Miami Parking Authority. Flagler receives annual rent payments of approximately $800,000, net of expenses, with the exception for real estate taxes and a storm water utility fee. This provides Flagler Development an annual net income stream of $346,000; equating to an annual ground lease of $1.56 / SF for tracts "A,” "B" and "C." The two northern parcels, Tracts "D" and "E," are currently not in use. These two tracts currently do not generate any income. Existing Land Use __ ________________________ The two northern parcels, Tracts "D" and "E," are currently not in use. These two tracts currently do not generate any income, and form a combined total of 138,136 SF. The amenities provided on these tracts allow for significant consideration to be the potential site for the South Florida East Coast Corridor Station. Map 5: NW View of Tracts “D” and “E” Map 5: Aerial View from Southernmost Tract B A E D C B A
  • 14. 13 Existing Land Use___ ________________________ Map 6: Aerial View of Freight Track, Tracts “D” and “E” The next photo illustrates how these tracts provide an ideal site for a transit station. The tracts conveniently provide direct connections to the Metromover and Metrorail. The frieght track could serve as a greenway to the waterfront. Map 7: Bird’s View of Metrorail, Tracts “D” and “E” E D
  • 15. 14 Market Analysis____________________________________ Office: Miami CBD 2009 Available Rental Space 9,213,875 SF Miami CBD No. of Buildings 74 Miami CBD 2009 Average Rental Rate $38.33/SF Miami CBD 2009 Average Vacancy Rate 16.5% Miami CBD 4th QTR Absorption Rate (42,221) SF Miami-Dade County Office Market Analysis Summary Vacancy The Miami-Dade County office market ended the fourth quarter of 2009 with a vacancy rate of 14.0%. The overall vacancy rate in Miami-Dade County’s CBD at the end of the fourth quarter 2009 increased to 16.5%. Net Absorption Net absorption for Miami-Dade County’s CBD was negative (42,221) square feet in the fourth quarter 2009. The vacancy rate was down in Miami-Dade County over the previous quarter, with net absorption totaling positive 252,291 square feet in the fourth quarter. Rental Rates Rental rates in the Miami-Dade County office market ended the fourth quarter at $30.37, a decrease from $30.55, over the previous quarter. The average quoted asking rental rate in Miami-Dade County’s CBD was $38.33 at the end of the fourth quarter 2009. Construction A total of three buildings were delivered to the office market in the fourth quarter totaling 126,301 square feet with 2,769,551 square feet still under construction at the end of the fourth quarter. Inventory Total office inventory in the Miami-Dade County market area amounted to 100,164,211 square feet in 4,299 buildings as of the end of the fourth quarter 2009. Sales Activity Cap rates have been lower in 2009, averaging 6.12% compared to the same period in 2008 when they averaged 6.69%. Conclusion The above information indicates that there is an overabundance of office space available to the private sector in the Downtown Miami area. Therefore, the delivery of yet another private office building in the surrounding area cannot be justified.
  • 16. 15 Market Analysis_____________________________________ Graph 3: Downtown Miami Office Market Report, CoStar Report
  • 17. 16 Market Analysis_____________________________________ Retail Miami CBD Available Rental Space 5,290,912 SF Miami CBD No. of Buildings 143 Miami CBD 2009 Average Gross Rental Rate $26.54/SF Miami CBD 2009 Average Vacancy Rate 5.06% Miami CBD No. of New Retail Businesses 42 Recent information suggests an improvement in the Downtown Miami retail market: a 2010 Integra Realty Resources survey of the 50-largest central business districts in the U.S. found that Downtown Miami’s retail vacancy rate of 5.06% is among the five lowest in the nation. Recent research conducted by the Miami Downtown Development Authority found that in 2009, 42 new retail businesses opened in Downtown Miami. Residential Population in One-Mile Radius of Flagler Site 36,346 2014 Population Projections 39,256 Population Increase 10% Downtown Miami Unsold New Condominiums 7,010 % of Unsold New Condominiums in Miami CBD 23% Recent studies suggest that although there has been an increase in occupancy in Downtown Miami’s condominium inventory, only 52% of occupied condominiums are rented. Accordingly, leasing activity and residential lease rates in Miami’s downtown area are down slightly compared to last year. A recent study by the Miami Downtown Development Authority shows there are still 7,010 unsold units in the new downtown area condominiums, compared with the 8,000 that existed seven months earlier. According to the Miami Downtown Development Authority, the 2009 estimated population of the downtown area is 36,346 within a one mile radius of Flagler Street and Miami Avenue. Conclusion This above information indicates a positive retail market. While the Miami-Dade Government District may not be large enough to support any “big box” retail development, it is prudent that a small retail portion be incorporated into the development in order to serve the needs of both the surrounding government workers and transit passengers. Due to sluggish expected growth rate and the substantial level of retail inventory, it is apparent that residential development is not the highest and best use for the subject property. Map 8: Miami CBD Population Breakdown 1 mile radius from Flagler St. at Miami Ave. 3 mile radius from Flagler St. at Miami Ave. 2014 Projection 39,598 202,251 2009 Estimate 36,346 194,545 2000 Census 27,279 174,498 1990 Census 25,373 170,877 Growth 1990-2000 7.51% 2.12% Table 1: Population Projection
  • 18. 17 The Importance of Government Centers & Jails Downtown_ Government Facilities Downtown The relocation of government facilities downtown sends a clear and direct message regarding the City’s long-term commitment to revitalizing and maintaining the neighborhood commercial district. It encourages reinvestment and signals to private investors that neighborhoods are on the upswing and their investments will be safe. Also, it promotes greater stability by bringing employees and visitors to eat in neighborhood restaurants and shop in local business establishments. Government facilities generate significant economic activity. It is estimated that each government worker will spend $2,500-3,500 annually in the downtown area. Retail developers see the presence of government facilities as an “insurance policy,” in that, in an economic downturn, the presence of government facilities will help the retail development to continue pulling in customers. The consolidation of city and county, state, and federal offices are part of a “campus-like” redevelopment project. It is important to note that government agencies should not be contributing to urban sprawl. Conserving existing urban resources, infrastructure and services encourages the development and redevelopment of central business districts and other mixed-use centers. Therefore, the utilization of existing architectural resources, rather than new construction, represents good conservation practices consistent with environmental and preservation initiatives. Location of Jail in Relation to Other Government Facilities The close proximity of a jail in relation to courts and other government services is integral to the efficient operations of all other parties involved. A majority of the court’s calendar concerns the appearance of jail inmates, as well as judges, attorneys, probation agents, clerk of courts, policemen, social workers, and countless others, all who should be located in the near vicinity of each other. The transportation of inmates can be a costly and timely effort to the local, state, and federal governments and can be handled more efficiently by relocating all government services in close proximity to one another. If this is not the case, then it becomes more time consuming to orchestrate meetings and court appearances, which will result in a court backlog, ultimately resulting in increased costs to the public. Jail Site Selection Optimal site selection of a new correctional facility is vital because affects the long-term operations and costs of the facility. The tasks of convincing a community that the presence of a correctional facility will not pose a risk to public safety, a decrease in land values, and a general decline in the neighborhood can be a daunting; however, a 1987 Study evaluated the impact of correctional facilities on land values and safety, and found that the notion that correctional facilities were a detriment to the neighborhood was able to be refuted using scientific research. This study was conducted by the FAU-FIU Government Center of the Florida International University, and it evaluated seven areas built in the past six years of the study, with a correctional facility in a seven-mile radius of a residential area. The study found that only one area experienced a decline in property values. The study also found the crime rates in the area were generally consistent, or lower, than in control areas. All seven areas had a significant, positive impact on the local economies. The study suggested various ways to handle public opposition in the site selection process, including frequent communication with the public, establishing community planning task groups, and providing objective information on the impact of the facility on the public’s main concerns – safety, land values, and the local economy. Other studies yielding similar results have been conducted by the Washington Council of Crime and Delinquency in 1995, and Ricci, Greene, and Associates, in 1996.
  • 19. 18 Miami-Dade Transit ____ Existing Transit The Government District is currently served by Miami-Dade Transit’s Metrobus, Metromover, and Metrorail. The Metrobus and Metrorail serve regional travel, whereas the Metromover provides circulation within downtown. The Government Center Metrorail Station is the busiest station in the Metrorail system with nearly 11,000 daily boarding. Transit is a common mode of access and travel within Downtown Miami; however, automobile travel is still the dominant mode of transport to and from downtown. An estimated 150,000 to 200,000 vehicles enter/exit downtown on a daily basis. Map 9: Downtown Transit Stations Metrorail Average Weekday Boarding  Brickell Station – 3,588  Government Center – 11,060  Overtown/Arena – 1,258 Yearly Boarding  Brickell – 1,057,000  Government Center– 3,129,000  Overtown/Arena – 396,110 Metromover Average Weekday Boarding  Government Center – 5,977 Monthly Boarding  Government Center – 148,889 Traffic Volume “Approximately 30,000 people come in and out of the Government District on a daily basis.” - Leo Zabezhinsky, Miami Downtown Development Authority
  • 20. 19 Miami-Dade Transit ____ Future Transit Development The location and configuration of Miami-Dade County's urban growth through the year 2025 shall emphasize concentration and intensification of development around centers of activity. Miami-Dade County shall require all new development and redevelopment in existing and planned transit corridors and urban centers to be planned and designed to promote transit-oriented development (TOD), and transit use, which mixes residential, retail, office, open space and public uses in a pedestrian-friendly environment that promotes the use of rapid transit services. This set of actions will produce short trips, minimize transfers, attract transit ridership, and promote travel patterns using the transit line that are balanced directionally and temporally to promote transit operational and financial efficiencies. The County will give special emphasis to providing a high level of public mass transit service to all planned urban centers. These urban centers are intended to be moderate- to high-intensity design-unified areas. The adopted land use plan for 2015 and 2025 shows that urban centers such as Downtown Miami will continue with a residential density increase that goes along with the population growth forecasted for this area. South Florida East Coast Corridor Left: The South Florida East Coast Corridor Study identified the need for both a City Center Station and a Regional Park and Ride Station. Downtown Miami, and specifically the areas of Government Center and 8th Street, provide the potential to serve existing downtown markets. Map 10: FEC Corridor
  • 21. 20 Miami-Dade Transit __ __ City Center Station In regards to the location of the future city center station, certain qualifications must be met. The site of this station must serve the walk ability of the surrounding business district, while also providing a connection point to other transit systems. The site should also support new commercial development, and the location and design of this station should reflect important civic function. Equally important, the City Center Station must support future infill development. Prospective 8th Street City Center Station Site These parcels, Tracts “D” and “E,” are just north of the Government Center Station. It can provide links to the Metrorail, Metromover, and the Metrobus. In addition, it allows for a connection to the waterfront, and the potential for future development on the northern side of the downtown area. Map 11: Bird’s NW View of Potential City Center Site/Tracts “D” and “E” Map 12: Aerial View of Potential City Center Site/Tracts “D” and “E” Creates connection of Metromover Elevated station to allow street to remain open & to accommodate grade retail Direct Connections for Metromover, Metrorail
  • 22. 21 Miami-Dade Transit __ __ Prospective 8th Street City Center Station Site Diagram 1: Configuration of Prospective City Center Station Diagram 2: Street View of City Center Station Connection to Metromover Taxi/ Drop-Off 30-45 ft. Main Station 30-45 ft. Ground retail 6-24’ Elevated Tracks 30-45 ft. Greenway Track to Waterfront 30-45 ft. Pedestrian Walkway 30-45 ft. Streetscape Improvements 18-20’ Clearance over 8th Street Miami Arena
  • 23. 22 Miami-Dade Transit __ __ Regional Park and Ride Station This regional park and ride is intended to serve areas beyond the end of the FEC line. It is imperative this future site has sufficient land for a large garage and has easy access to/from highways. The South Florida East Coast Corridor identified two potential locations, 8th Street and 11th Street, for the Regional Park and Ride. A station at either site can help support desired infill housing and commercial development. Regional Park and Ride Development at 8th Street Map 13: Prospective Regional Park and Ride Sites Above: The former Miami Arena site would be utilized for the development of a parking garage. The garage site could support dense development. In addition, this site would allow for multiple connections to existing stations, including the Metrorail and greenway connections. This site is most easily accessed by I-95.
  • 24. 23 Miami-Dade Transit __ __ Prospective 8th Street Regional Park and Ride Site M Diagram 3: Configuration of Regional Park and Ride Station Freight Track must remain open which could serve as a greenway to the waterfront Potential site for elevated City Center Station Hub Former Miami Arena site could support a new suffice garage Traffic would promote 8th Street residential components Reopen greenway under Metrorail Streetscape improvements on 8th Street 18’ 8th St. clearance Approximately 350 spaces per level in garage Elevated direct connection Main Station Entrance Street Level Retail Metrorail Connect
  • 25. 24 Miami-Dade Transit______________ ________ Incorporation of Transit Design Diagram 4: Potential Transit Center Design Allowing tracts "D" and "E" to be utilized for the location of the South Florida East Coast Corridor Station in Miami, Flagler will be able to realize revenue of $18 million at the end of year two. Through the agreement, Flagler will also outline the long term use of the Park & Ride parking facility that will be funded by the Miami Parking Authority (MPA).
  • 26. 25 Miami-Dade Transit______________ ________ An Iconic Grand Central Station should be considered for the site. Such a design would offer adequate retail, and convenient uses that directly relate to the transit-oriented development. Diagram 5: Belgium’s New Calatrava Train Station The proposed station should create a central hub that can be accessed by all Miami-Dade County transit. This particular structure will be the foundation for the transit system’s success, as exemplified in the illustration below. Diagram 6: Calatrava Train Station, Santiago Calatrava
  • 27. 26 Plan Approval Process ________ Summary The scope of the project requires a Major Special Use Permit (MSUP), as defined in the City of Miami Zoning Ordinance as a non-residential use involving in excess of two hundred thousand (200,000) square feet of floor area. Plan approval for a project involving a MSUP expected to take up to eighteen (18) months. The process for plan approval involves: Pre-application conference Conference conferring with zoning administrator and director of the department of planning, building, and zoning and other affected city departments. Application, content The actual application for MSUP, along with submission of materials including maps, plans, surveys, studies, and concept plan. Developmental impact study Application of a study which shall demonstrate the impact of the proposed development on the local economy, public service, environment, and housing supply; not required if the development is a DRI. Application, referrals The completed MSUP application is referred to the director of the department of planning, building, and zoning. The director shall refer the application to any city and non city agencies that he or she deems necessary for review. A large scale development committee (LSD) may be convened to review the application. Comments and recommendations shall be received by applicant within thirty (30) days. Notice of sufficiency The applicant is then notified of sufficiency or deficiencies in application and any measures required for remedy of any deficiencies. Recommendations Upon notice of sufficiency or remedy of deficiencies, a written report is supplied by the director of department planning, building, and zoning granting recommendation of the application. Planning advisory board If there is no zoning change involved, the director of planning, building, and zoning shall make recommendations at a regularly scheduled public hearing of the planning advisory board. The planning advisory board may recommend approval or denial of the application, which is then transmitted to the city commission. Hearing by city commission The city commission may approve or deny the application, or require modifications or conditions of approval. The city commission considers the impact of the development on the city, the use of public transportation facilities, the impact on housing and employment, public safety, and environment. Once approved, approval is binding upon applicant and any successors. Permit is issued for two years and may be renewed in two year intervals. Construction Permits Upon approval, construction permits may be applied for and all construction plans must confirm with the approved application.
  • 28. 27 Design______________ ________ Proposed Development The vertical massing illustrates how the structures will appear from street view. The layout below shows how the development will look from the East. From left to right the uses are: State Attorney’s Office, Parking Garage, County Courthouse, and County Jail. Design 1: Street View of Proposed Development Tract “A” Design 2: Street View of Tract “A” Tract "A" shows the construction of an eight-story, Class-A Office building that would fulfill the needs of a State Attorney’s Office. Retail will border along the northern edge, NW 2nd Street, servicing transit passengers that are entering and exiting the downtown area.
  • 29. 28 Design______________ ________ Tract “B” Tract "B" will house an 8-level, 974-space parking facility. 19,000 SF of retail space will border the ground level will also be constructed on both the eastern and southern edges. The street front retail will be open to NW 2nd Street and NW 1st Avenue, which will be utilized by pedestrians. Design 3: Street View of Tract “B” Tract “C” Design 4: Street View of Tract “C” Tract “C” allows for the construction of two facilities. The southern half of Tract “C” provides the land needed to construct a 13-level, 500,000 SF County Courthouse. The first 8 floors will contain 40,000 SF floor plates and the remaining floors, floors 9-13, will gross 30,000 SF.
  • 30. 29 Design______________ ________ Tracts “A” and “B” The site plans for Tracts “A” and “B” illustrate how the two adjacent structures will complement one another. The required setbacks of 10-feet have been met, with an additional 15-foot setback on the principal fronts. With these setbacks, the development achieves, and goes above, the required 10 percent of open space. A large portion of Tract “A” has been left undeveloped to accommodate a public park. This additional green space over that in which is required will add visual integrity to the immediate surrounding areas. Design 5: Aerial View of Tracts “A” and “B” Parking Garage 974 Spaces (Eight Levels) Ground Floor Retail 19,000 SF Ground Floor Retail 8,800 SF State Attorney's Office Building 153,200 SF "B" "A"
  • 31. 30 Design Design 6: State Attorney’s Office Design 7: Parking Facility Located on tract “A”, The State Attorney’s Office has been designed with a modern design. This will be the trademark structure. The design of the parking garage, located on Tract “B” will mirror the façade of the current garage that currently services the Federal Courthouse.
  • 32. 31 Design______________ ________ Tract “C” The site plan for Tract “C” has two uses: the southern half will be used for the construction of a new County Courthouse and the northern half will be used for the new County jail. The County Courthouse, in blue, meets all setback requirements, and offers additional green space that exceeds the minimum 5 percent . A vertical easement from the ground to 45 feet has been accounted for between the building. This allows a secure sky bridge bewtween the facilities to be constructed just over the the easement. Design 8: Aerial View Tract “C” Jail Building 610,000 SF (19 Stories) Courthouse Building 500,000 SF (13 Stories) "C"
  • 33. 32 Design______________ ________ Design 9: Aerial View Tract “C” Design 10: Aerial View Tract “C” The south half of Tract “C” will be composed of a 500,000 S.F. Courthouse that is designed to complement the existing Federal Courthouse. The remanding space of Tract “C”, the north half, will be utilized through a ground lease from the County to construct a jail. The jail has been designed to blend into the surrounding.
  • 34. 33 Design______________ ________ Conclusion State Attorney's Office SFECC Station Ground Floor Retail Parking Garage County Courthouse County Jail
  • 35. 34 Financials – State Attorney’s Office 10 Year Cash Flow________
  • 36. 35 Financials – State Attorney’s Office Sources Sources & Uses – State Attorney’s Office Loan Equity Cost Cost/SF Loan/SF Land $0 $4,503,330 $4,503,330 $27.80 $0 Development $0 $0 $0 $0.00 $0 Construction $32,400,000 $4,050,000 $36,450,000 $225.00 $200 Permit Fees $0 $183,668 $183,668 $1.13 $0 Couthouse Consultant $0 $100,000 $100,000 $0.62 $0 Legal Fees $0 $200,000 $200,000 $1.23 $0 Architect $0 $1,093,500 $1,093,500 $6.75 $0 Engineer $0 $729,000 $729,000 $4.50 $0 Closing Costs $711,000 $0 $711,000 $4.39 $4 Interest Reserve $2,500,000 $0 $2,500,000.00 $15.43 $15 Total $35,611,000 $10,859,498 $46,470,498 $286.85 $219.82 Percentages 77% 23% 100% Construction Cost Analysis State Attorney’s Office Estimated Estimated Estimated Estimated *Excluding Land and Tax YEARS 1 2 3 4 Total Construction Equity 6.25% Loan 93.75% $36,450,000 $0 $0 $18,225,000 $18,225,000 Permit Fees Equity $183,668 $0 $0 $91,834 $91,834 Couthouse Consultant Equity $100,000 $25,000 $25,000 $25,000 $25,000 Legal Fees Equity $200,000 $100,000 $50,000 $25,000 $25,000 Architect Equity $1,093,500 $546,750 $273,375 $136,688 $136,688 Engineer Equity $729,000 $364,500 $182,250 $91,125 $91,125 Closing Costs Debt $711,000 $0 $0 $711,000 $0 Interest Reserve Debt $2,500,000 $0 $0 $1,250,000 $1,250,000 Total $41,967,168 $1,036,250 $530,625 $20,555,647 $19,844,647 Percentages 100% 2.47% 1.26% 48.98% 47.29%
  • 37. 36 Financials – Court House 10 Year Cash Flow___________________ ___
  • 38. 37 Financials – Courthouse Office Sources Sources & Uses Court Construction Cost Analysis Court Loan Equity Cost Cost/SF Loan/SF Land $0 $8,580,000 $8,580,000 $17.16 $0.00 Development $0 $0 $0 $0.00 $0.00 Construction $106,875,000 $18,125,000 $125,000,000 $250.00 $213.75 Permit Fees $0 $605,851 $605,851 $1.21 $0.00 Couthouse Consultant $0 $350,000 $350,000 $0.70 $0.00 Legal Fees $0 $500,000 $500,000 $1.00 $0.00 Architect $0 $3,750,000 $3,750,000 $7.50 $0.00 Engineer $0 $1,875,000 $1,875,000 $3.75 $0.00 Closing Costs $1,900,000 $0 $1,900,000 $3.80 $3.80 Interest Reserve $8,200,000 $0 $8,200,000.00 $16.40 $16.40 Total $116,975,000 $33,785,851 $150,760,851 $301.52 $233.95 Percentages 78% 22% 100%
  • 39. 38 Financials – Parking Garage 10 Year Cashflow________________ ___________
  • 40. 39 Financials – Parking Garage Sources Construction Cost Analysis Parking Garage Financials – Parking Garage Supplemental Information Loan Equity Cost Cost/SF Loan/SF Land $0 $7,239,180 $7,239,180 $20.33 $0.00 Development $0 $0 $0 $0.00 $0.00 Construction $12,816,000 $3,204,000 $16,020,000 $45.00 $36.00 Permit Fees $0 $320,400 $320,400 $0.90 $0.00 Legal Fees $0 $320,400 $320,400 $0.90 $0.00 Architect $0 $480,600 $480,600 $1.35 $0.00 Engineer $0 $240,300 $240,300 $0.68 $0.00 Closing Costs $192,240 $0 $192,240 $0.54 $0.54 Interest Reserve $900,000 $0 $900,000.00 $2.53 $2.53 Total $13,908,240 $11,804,880 $25,713,120 $72.23 $39.07 Percentages 54% 46% 100% Estimated Estimated Estimated Estimated *Excluding Land and Tax YEARS 1 2 3 4 Total Construction Equity 6.25% Loan 93.75% $16,020,000 $0 $0 $8,010,000 $8,010,000 Permit Fees Equity $320,400 $0 $0 $160,200 $160,200 Legal Fees Equity $320,400 $160,200 $80,100 $40,050 $40,050 Architect Equity $480,600 $240,300 $120,150 $60,075 $60,075 Engineer Equity $240,300 $120,150 $60,075 $30,038 $30,038 Closing Costs Debt $192,240 $0 $0 $192,240 $0 Interest Reserve Debt $900,000 $0 $0 $450,000 $450,000 Total $18,473,940 520,650 260,325 8,942,603 8,750,363 Percentages 100% 2.82% 1.41% 48.41% 47.37% Retail Income Retail Space SF 19000 Rental Rate SF $26 Gross Income $494,000 Less Vacancy 8% $39,520 Total Retail Income $454,480 Parking Income # of Employee Spaces 974 % Employee Spaces 80% Employee Rate $80 Monthly # of Employee Spaces 779 Annual Employee Income $748,032 % Hourly Spaces 20% # of Hourly Spaces 195 Hourly Rate $5 Hour Hours Per Day Occupied $8 Daily Income $7,792 Annual Income $2,844,080 Total Parking Income $3,592,112
  • 41. 40 Financials – Leveraged IRR_________________________________ ___________
  • 42. 41 Financials – Unlevered IRR_________________________________ ___________
  • 43. 42 Land Evaluation – Sales Comparison Approach__________ Price per square foot method: The price per square footage method was used to value of the land. This method utilizes an analysis of the sales and concludes to an adjusted value per square footage. This evaluation is based on the value of the land only. Costar Group was used to search for land sales similar to the subject in order to estimate the value of the land. The criteria utilized were as follow: 3 mile radius search, closed land sales, commercial zoning, and sales date from 01/01/09 to 03/01/10. As such, the following comparables were obtained: Address Sale Date Land area [SF] Sales price Price/sf Zoning Proposed Use 1 150 NE 7th St 09/21/09 298,926 $39,000,000 $130.47 C-1 Hold for development 2 200 NE 3rd St 12/29/09 25,501 $5,470,000 $191.92 CBD Office/Schools 3 1850 Bay Road 03/31/09 23,130 $6,800,000 $293.71 CD-2 Parking Garage Average 115,852 17,090,000 $147.52 As illustrated above, three comparables were used in order to estimate the value of the land. The sales prices ranged from $5,470,000 to $39,000,000 with a mean of $17,090,000. The price per square footage ranged from $130.47/sf to $293.71/sf with a mean of $147.52. Sale #1 is similar to the subject in size and proposed use. Therefore, we have placed more weight on this comparable. It has been concluded that a value of $130/sf is adequate for the subject property. Therefore: 360,676 SF X $130/sf = $46,887,984 Rounded $46,800,000 It has been concluded that “As Is” market value of the fee simple estate of the subject, in its condition as of the date of this report, is: $46,800,000 Forty Six Million Eight Hundred Thousand dollars
  • 44. 43

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