The City owns and operates surface parking lots located at 1688 Lenox Avenue (“P25”) and 1080 Lincoln Lane North (“P26”), both in close proximity to the Lincoln Road commercial district.
In companion Resolutions 2022-32241 and 2022-32242, the Mayor and City Commission approved, subject to voter approval, a Development Agreement and Ground Leases with Lincoln Road Property Owner, LP , the Project Developer, for the design, development, and construction of mixed-use buildings with parking garage facilities on P25 and P26 (individually, “Project Component” and collectively, the “Project”). Lincoln Road Property Owner, LP, is a joint venture controlled by three local firms: Integra Investments, Starwood Capital Group, and The Comras Company.
Section 1.03(b)(2) of the City Charter requires approval, by a majority of the voters voting in a Citywide referendum, of any lease of ten (10) years or more of certain City-owned parking lots located in the vicinity of Lincoln Road, including the P25 and P26 sites that are the subject of this Ballot Question. This Ballot Question No. 6, if approved by a majority of voters, would allow the City to lease the P25 and P26 sites to Lincoln Road Property Owner, LP for development of the Project.
The Project, if approved by a majority of voters, would include: (1) Class A office space, (2) ground floor commercial retail to activate street fronts including Lincoln Lane North, (3), public parking to replace all existing 192 public Parking spaces currently available on P25/P26, and (4) additional parking to satisfy off-street parking requirements for office use.
Pursuant to the Ground Leases, the proposed buildings are limited to a maximum height of 100 feet and must be sustainably constructed to meet LEED Gold Certification, with at least 50% of floor area developed as Class A office space, ground floor activation provided by retail, restaurant, or similar active uses, landscaped public space, and 1,000 sq. feet community benefit space for rent-free use by a cultural or educational not-for-profit. Final project design is subject to review and approval by the City’s Design Review Board, and the Developer must obtain all approvals and permits required to build the Project.
In addition to providing required off-street parking for the office use, the 192 public parking spaces existing today on P25 and P26 must be replaced in kind on the lower floors of either structure and be available to the public at the City rate. The developer has submitted a Parking mitigation plan to minimize construction impacts, by phasing project construction between both sites and incorporating a valet parking system, subsidized by the developer, resulting in zero net loss of onsite parking and parking revenue during construction. Upon project completion, the City is entitled to 100% of net revenues collected from operation of the 192 public parking spaces.
Throughout the 99-year Ground Leases, the City will receive Minimum guaranteed rent of $210,088,941 (subject to annual escalations and periodic rent resets, both benefiting the City) or Participation Rent equal to 5% of gross Project revenues, whichever is higher. Beginning on the fifth anniversary of the Permitted Transfer Date for each Project Component, the City will receive Transaction Rent of 1.5% gross proceeds on every sale of each Project Component (capped at $2,000,000 adjusted for inflation). Developer will be responsible for all costs and expenses to develop, design, and construct the project, with no city funding and no public subsidies, tax rebates, or tax abatements. The Developer’s payment of ad valorem taxes may yield approximately $500,000 in additional annual tax revenues to the City.
For additional information, including a copy of the P25/P26 Ground Leases, City Commission resolutions, and renderings depicting the Preliminary Concept Design for the Project, please visit the City’s website here or contact the Office of the City Clerk at 305.673.7411.
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