PB26-0844

1940 PARK AVENUE

LEASE AGREEMENT

The following summaries were generated by AI from the official documents linked below. They may contain errors. Please refer to the original documents for authoritative information.

Proposal

The City of Miami Beach proposes a 99-year ground lease (51-year initial term plus two 24-year extensions) with 1940 Barclay Partners, LLC for the redevelopment of the city-owned Barclay Plaza property at 1940 Park Avenue into a 105-unit mixed-use multifamily residential building with ground-floor retail. The project is predominantly market-rate but includes affordability requirements: at least 7 senior units reserved for households at or below 80% AMI and at least 15% of units restricted to households earning up to 160% AMI. The developer will pay a one-time $2 million ground lease payment and privately finance the entire project with no city subsidy required.

Staff Recommendation

Conditions:

• Developer must substantially retain and preserve exterior walls, public interior spaces, and architecturally/historically significant features where feasible
• HPB approval required for all new construction including additions and rooftop structures
• If full or partial demolition is unavoidable: reconstruction of original facades along Park Avenue and Washington Avenue; rebuilding of historically significant interior lobby elements; salvage, preservation, and reuse of original architectural materials where possible
• Minimum of 7 Senior Residential Units reserved for households at or below 80% AMI with at least one member aged 62 or older, coordinated with Housing Authority voucher program
• Minimum 15% of total residential units designated as Restricted Residential Units at lesser of market rate or 160% AMI, enforceable by restrictive covenant for full 99-year lease term
• All residential units subject to minimum 12-month lease terms; short-term and transient rentals expressly prohibited
• No units smaller than 400 square feet; no co-living or micro units
• Restricted and Senior units must include mix of unit types/sizes, be distributed across multiple floors, and be indistinguishable in design and finish from market-rate units
• Minimum 1,000 sq. ft. of activated ground-floor retail
• Triple-net lease: developer assumes all operating expenses, taxes, insurance, and maintenance
• One-time $2 million ground lease payment due on Possession Date
• City's ownership interest non-subordinated to any financing
• Developer assumes property AS-IS including all environmental and resiliency-related costs
• Project must comply with city resiliency standards per RFP Appendix C
• Developer must comply with prevailing wage requirements per City Code Section 31-27
• Developer must comply with local workforce participation requirements (30% Miami-Dade County residents) per City Code Section 31-40
• Developer must contribute 1.5% of construction cost to Art in Public Places fund
• Project named 'The Barclay'; name changes require mutual agreement
• Strict project milestones must be met; failure may trigger termination and liquidated damages
• Developer must maintain minimum 10% equity interest in project at all times
• No conversion to condominium or ownership program permitted
• No transfers to Foreign Instrumentalities without City Commission approval

Compliance Findings:

Key Issues

• Historic preservation: The Barclay Plaza is a contributing structure in the Museum Local Historic District and Miami Beach Architectural District; full demolition may be required due to structural conditions, requiring HPB approval and facade reconstruction
• Comprehensive Plan consistency is only partial pending a separate amendment application to allow market-rate residential and increased density
• No on-site parking is proposed; only a driveway and drop-off area along the north side of the property
• The project replaces 66 affordable housing units with a predominantly market-rate development, raising affordability concerns
• Two prior RFP-awarded projects failed before this proposal was selected
• The property has been subject to an emergency demolition order since 2014 (currently unenforced pending RFP outcome)
• A 2021 feasibility study found the building envelope and all major systems require full replacement
• Sea level rise and resiliency criteria deemed not applicable to this lease review
• Affordability restrictions (15% at 160% AMI and 7 senior units at 80% AMI) must be enforced via restrictive covenant for the full 99-year lease term
• Short-term and transient rentals expressly prohibited; minimum 12-month lease terms required

Cover Sheet

Land Use Document

785.82 KB

Application

Signed Application 07-07-26

5.25 MB

Staff Report

Staff Report 07-07-26

442.92 KB

Other

Letter of Support - Collins Park 07-07-26

114.36 KB