TITLE
RESOLUTION RELATING TO MIAMI INTERNATIONAL AIRPORT; AUTHORIZING THE MAYOR OR DESIGNEE TO ADVERTISE A SOLICITATION FOR EXPRESSIONS OF INTEREST FROM INVESTORS AND DEVELOPERS FOR CONSTRUCTION, RENOVATION, AND USE OF FACILITIES IN THE FOUR SITES MAKING UP PHASE II OF THE COUNTY�S PUBLIC PRIVATE INVESTOR PROJECT FOR THE AIRPORT SYSTEM; FINDING AND DETERMINING THAT EACH OF SUCH SITES AND THE FACILITIES CURRENTLY THEREON AND THOSE TO BE CONSTRUCTED THEREON CONSTITUTE AIRPORT FACILITIES; AUTHORIZING THE MAYOR OR DESIGNEE TO DETERMINE FROM THE EXPRESSIONS OF INTEREST WHICH INVESTORS OR DEVELOPERS THE AVIATION DEPARTMENT SHOULD COMMENCE NEGOTIATIONS WITH IN ORDER FOR A DEVELOPMENT LEASE AGREEMENT FOR THE PHASE II SITES TO BE NEGOTIATED THAT IS IN THE BEST INTEREST OF THE COUNTY AND TO RETURN SUCH AGREEMENT TO THIS BOARD FOR APPROVAL

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum and document, copies of which are incorporated herein by reference,


NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board authorizes the Mayor or designee to advertise the attached Solicitation for Expressions of Interest from investors and developers for the construction, renovation, and use of facilities on the four sites at Miami International Airport that make up Phase II of the County�s Public Private Investor Project for the County�s Airport System; finds and determines that each of the four sites and the facilities currently thereon and those to be constructed thereon constitute airport facilities under Section 125.35 of the Florida Statutes; authorizes the Mayor or designee to determine from the Expressions of Interest received as a result of the advertised solicitation which investors or developers the Aviation Department should commence negotiations with in order for a Development Lease Agreement for the Phase II sites to be negotiated that is in the best interest of the County; and directs the Mayor or designee to return such Agreement to this Board for approval.

HEADER
Date:


To: Honorable Chairman Bruno A. Barreiro
and Members, Board of County Commissioners


From: George M. Burgess
County Manager


Subject: Subject: Request to Advertise- EOI for Public
Private Investor Project EOI No. MDAD-01-2008

STAFF RECOMMENDATION
RECOMMENDATION
It is recommended that the Board approve this request for advertisement of the attached solicitation in substantially the form attached hereto for Expressions of Interest (EOIs) for four development sites at Miami International Airport (MIA) and authorize the Mayor or designee to negotiate a development lease agreement with the company that provides the best development proposal and financial benefit to the County.


SCOPE
MIA is located primarily within Commission District Six, however, the impact of this item is countywide in nature as it relates to the Miami-Dade Aviation system.


FISCAL IMPACT/FUNDING SOURCE
The award resulting from this EOI will be a revenue generator for the Miami-Dade Aviation Department (MDAD).


TRACK RECORD/MONITOR
Track Record is not applicable as this is a request to advertise. The monitor for the project will be Gregory C. Owens, MDAD Division Director for Real Estate Management and Development.


COMPLIANCE DATA
Not applicable as this is a request to advertise.


DELEGATED AUTHORITY
The Mayor or his designee is authorized to negotiate a development lease agreement with the company that provides the best development proposal and financial benefit to the County

MANAGER'S BACKGROUND
BACKGROUND
The County, through MDAD, is seeking to negotiate with qualified developers/investors a development lease agreement to finance, design, construct, renovate, manage, and/or operate projects in four available investment areas in the vicinity of MIA�s Central Boulevard, consisting of a hotel, existing structures, and underutilized land. This opportunity is the second phase of MDAD�s efforts to generate non-aviation revenues from non-producing assets through a Public Private Investor Partnership (PPIP). The first phase of PPIP sites is currently in the negotiation stage with the top-ranked developers that responded to a competitive Request for Proposal (RFP) as approved in Resolution No. R-650-07.


MDAD�s $6.2 billion Capital Improvement Program (CIP) has consumed the Aviation Department�s borrowing capacity. However, the needs of the anticipated CIP significantly exceed the $6.2 billion amount. In an effort to address these unfunded needs and increase non-aviation revenues, MDAD is seeking private investors/developers to generate revenues. Completion of the Central Boulevard PPIP project is best achieved via a solicitation for EOIs leading to a negotiation of a development lease agreement and not the more traditional competitive RFP. This process will provide MDAD the flexibility to conduct negotiations with several entities to select the best and most appropriate investor/developer to construct improvements.


An EOI is a two-step process which allows MDAD to measure what type of interest there is for a project and to pre-qualify potential participants. The first step invites participants to submit information regarding their companies and their ability to meet the financial and development capability to engage in a proposed development of this magnitude, and more importantly, a brief description of how the investor/developer will develop all or a portion of the available sites. The second step allows the County to select a limited number of participants based upon the EOI information submitted with whom to negotiate to develop the sites.


The four investment sites included in the EOI are:
� Area �A,� commonly known as �Central Base,� is a 25 +/- acre site. If an investor/developer chooses, the site may be subdivided into an 8+/- acre parcel that currently consists of a surface parking area; if this option is chosen, the investor/developer will not have any future development rights to the remaining 17 acres. MDAD is not mandating what type of development should go on this site; however preliminary feedback from interested parties indicates that a conference center hotel may be ideal for this site. Also, MDAD will not consider any proposals regarding fixed-based operations (FBO) for this site;
� Area �B� is an 8 +/- acre site adjacent to NW 20 Street and is designated for the development of a new retail service plaza;
� Area �C� is the designated new hotel site and is comprised of a 3 +/- acre area that straddles the access lanes to the parking garages (the �New Hotel Site�); and
� Area �D� is the existing in-terminal hotel located at Concourse �E�. The hotel has undergone several renovations and is currently being brought to code compliance. However, extensive renovations are still required, along with an expansion of the hotel into three (3) floors of adjoining space currently occupied by MDAD.


A planning session was held with senior MDAD staff; HNTB, the bond engineer; AvAirPros, the airline liaison; First Southwest, the financial advisor (for this engagement they serve as the Owner�s representative); Quinlivan Appraisals, the airport real estate appraiser; the County Attorney�s Office; and the County Manager�s Office. Each site was thoroughly reviewed in an effort to determine what impact if any these developments would have on MDAD�s day-to-day operations. Having identified no significant operational impacts, the workshop participants recommended that MDAD proceed with the EOI process.


To confirm that there is an existing market for these potential development projects, MDAD invited the industry to a workshop on March 25, 2008, to advise the industry of this investment opportunity, to field questions, and to request comments. Approximately 50 investor/development industry representatives attended the workshop. Additionally, MDAD staff has accommodated many one-on-one informational meetings with numerous prospective investors.


MDAD intends to advertise nationally and internationally the availability of the sites to generate a suitable number of potential investors. In addition to a brief description of how each entity would approach developing the sites, which will be a primary basis on which MDAD determines with whom to start negotiations, the solicitation requires each investor/developer to submit evidence that it possesses the capability and financial backing necessary for a project of this magnitude.


Upon receipt of the EOIs, MDAD will determine which EOIs present a proposed development that is in the best interest of the County to pursue through negotiations and which investor/developers should be invited to discuss their EOIs further with MDAD. MDAD intends to create a short list of not more than five (5) developers with whom to negotiate. Negotiations will continue until MDAD is able to recommend a single investor/developer for the program.


Under Section 125.35(1)(b), the County through its Aviation Department is legally entitled to negotiate leases with proposed users of an airport facility. The resolution approving the solicitation of EOIs reflects the Board�s determination that the four sites making up the PPIP Phase II project and the facilities to be constructed on the sites constitute an airport facility.


PROJECT:
Solicitation of Expressions of Interest for Public Private Investor Project, Phase II.


PROJECT NO: EOI No. MDAD-01-2008

TERM OF CONTRACT:
All terms of a development lease agreement will be subject to negotiation. However, regarding the length of the term, the Federal Aviation Administration (FAA) has recently limited the maximum term of a non-aviation development agreement to 55 years, but allowed such term to commence at the conclusion of the development period. The FAA however, retains the right to require a shorter (than 55 years) term, basing its decision on the merits of each development lease presented. Each lease must be accepted by the FAA prior to the consideration of the Board.


INVESTMENT:
The total estimated investment for development of the projects could exceed $500 million. The development will be considered under a hybrid of (i) a Build ( which includes design), Operate and Transfer (BOT) arrangement for new construction, whereby the developer/investor shall lease undeveloped land, build and operate the facilities for a prescribed period of time, and thereafter transfer the ownership of the facility to MDAD; and (ii) a Lease-Develop-Operate (LDO) agreement for existing or substantially rehabilitated structures such as the MIA Hotel, whereby the developer/investor shall lease the land and structure, rehabilitate and/or expand the structure, operate the structure for a prescribed period of time, and at lease termination return the renovated structure to MDAD.


MINIMUM QUALIFICATIONS:
Each developer/investor will be required to submit a single certification form that includes (i) its statement of willingness to develop the project, (ii) experience in building and operating a mixed-use development where the investment exceeded $300 million � preferably consisting of a hotel component; and (iii) financial capacity to develop the facilities and (iv) a narrative of not more than 350 words, describing how the developer/investor will develop the sites


EXCEED LEGAL REQUIREMENTS: No


FUNDING SOURCE: N/A; Investor funded.


REVIEW COMMITTEE:
N/A. Pursuant to Administrative Order 3-41, the Department of Business Development reviewed the solicitation for EOIs and determined that the small business enterprise program did not apply because no County dollars will be expended.


CONTRACT MEASURES:
As a condition of award of a development lease agreement for the investment area, the successful proposer will be required to comply with applicable contract measures which may include: (a) a Community Business Enterprise (CBE) goal for architectural and engineering services; (b) a Community Small Business Enterprise (CSBE) goal for construction services; (c) a local workforce hiring provision under the Community Workforce Program (CWP) which requires that a percentage of the workforce performing construction trade work and labor on capital construction be residents from designated target areas; (d) a Disadvantaged Business Enterprise (DBE) goal for construction services; and (e) Airport Concession Disadvantaged Business Enterprise (ACDBE) goals for concession activities.




______________________
Assistant County Manager