Hollywood Real Estate Workshop Presentation - February 2020

FEBRUARY 26, 2020

CITY COMMISSION WORKSHOP

CITY OF HOLLYWOODREAL ESTATE ADVISORY AND TRANSACTION SERVICES

AGENDA

• Real Estate Development and the City’s Strategic Focus Areas • Gus Zambrano, ACM Sustainable Development

• Introduction of CBRE Real Estate Advisory Services • Raelin Storey, Director, CMED

• Site Analysis and Recommendations• Michael McShea, Executive Vice President, CBRE• Lee Ann Korst, SE Regional Manager, CBRE• Larry Genet, Senior Vice President, CBRE

• Update on Current City Property Redevelopment Initiatives• Raelin Storey, Director, CMED

• Commission Discussion and Questions


2

STRATEGIC PLAN

3

Economic Vitality

Infrastructure and Facilities

Maximize opportunities for revenue generation

Maintain a sustainable City budget

Allocate resources to improve public rights of way and other City Property

Grow the City’s tax base by facilitating investment and redevelopment of properties

Facilitate investment in public infrastructure

• Introduction of CBRE Real Estate Advisory Services


5

TEAM OVERVIEW

LEE ANN KORSTSE Regional Manager

850 251 [email protected]

MICHAEL MCSHEAExecutive Vice President


LARRY GENETSenior Vice President


JAKE ZEBEDEAssociate


OVERVIEW OF CBRE

FORTUNE

500

FORTUNE Most Admired

CompanyFORBES LIPSEY ETHISPHERE EUROMONEY

#146 in 2019

6

#1 in real estate in 2019.

Seven consecutive years on the list

A top company for diversity, women

and new

graduates

#1 brand for 18 consecutive years

Named one of the World’s Most Ethical

Companies six years in a row

Global Real Estate Advisor of the Year

six of past seven years

LOCAL MARKET PRESENCE

7

CBRE is Florida’s leading commercial real estate services firm. Since establishing a presence in the state more

than 39 years ago, our firm has been recognized for advising clients across Florida and helping them leverage

market opportunities to achieve their business objectives. With approximately 1,249 employees, including 165

real estate brokerage professionals in 8 offices across the state, CBRE offers a full range of commercial real

estate services to fit our clients’ specific needs.

FLORIDA MARKET PRESENCE

In 2018, the Florida offices

completed 2,648 transactions

totaling more than $13.2B in

transaction value.

1,249EMPLOYEES

$10.1B SALES

$3.03BLEASING

36.8 MSFUNDER

MANAGEMENT

PUBLIC INSTITUTIONS &

EDUCATION SOLUTIONS (PIES)

• Nationwide

• Work exclusively with State, County, City

Governments and Educational Institutions

• 100 Public Sector Clients

– Office/Industrial Leasing

– Positioning Under-utilized assets for

sale: Ports

– Redeveloping Assets: Convention/Civic

Centers

– Public/Private Partnerships:

Courthouses, Administration Buildings

PUBLIC SECTOR EXPERTS

8

CBRE STATE AND LOCAL GOVERNMENT PARTIAL CLIENT LIST

CBRE provides state and local government entities with comprehensive real estate

solutions.

Challenges:

DEFERRED

MAINTENANCE

SHIFTING

DEMOGRAPHICS

INEFFICIENT

USE OF SPACE

UNFUNDED

MANDATES

Opportunities:

WELL-LOCATED

ASSETS

REVENUE

GENERATION

ECONOMIC

DEVELOPMENT

MOTIVATED

STAFF

9

CITY HALLCURRENT SITUATION

Total site = 9.89 Acres

Dated City Hall facility – approximately 60 years old

319 employees occupy the City Hall complex

The City occupies space in two other locations: 3,664 SF (Design and Construction Management

– city owned) and 6,000 SF (Parks and Recreation – commercial lease). These spaces could be

consolidated into a new City Hall

Systems approaching their End of Useful Life (EUL)

Deferred maintenance and ADA required of $4.9 MM to bring facility up to acceptable condition

Capital improvement needs of $3.2 MM over the next 10 years to maintain the facility

The Parks and Recreation lease expense is $101,000 annually

The buildings are functionally poor and inefficient

Valuable and underutilized existing site

Broward County Library Building

o Underutilized with only 1 of 2 floors occupied;

o Building foundation designed and constructed to handle the addition of two additional

floors

o Opportunity for the City to backfill vacancy and maximize density on site

o Funding ($200k) allocated for design of development services center

Massing plans demonstrate various densities and uses for existing site

10

CITY HALLANALYSIS TO DATE

Facility Condition Assessment (FCA) MASSING PLANS

• Short term deficiencies: windows, roofing

systems, Mechanical, Electrical and Plumbing

(MEP) systems, pavement, drainage

• Wear and tear is consistent with age of facility

– 60 years old

• Building systems nearing End of Useful Life

(EUL)

• Interior finishes are in fair to poor condition;

beyond their useful life

• Interior spaces have been re-purposed

without proper space planning resulting in

inefficiency

• Evidence of moisture merits a mold and

moisture survey be completed as part of a full

environmental report

• If the City remains, a comprehensive capital

improvement program is needed

• Scale based drawings to provide development

scenarios for City Hall Circle

• Conceptual in nature – numerous variations could

be considered and proposed – intended to

provide a sense of what could be accomplished

on the site

• Guidelines include:

o Incorporate the existing Library

o Best use of current City Hall including

relocation

o Have transition to existing surrounding sites

o Plan for potential connections throughout

the circle with the surrounding area

o Keep in mind the city zoning regulations to

“rezone”

11

CITY HALLFCA- SPACE UTILIZATION

PROPERTY OUTLINE

BUILDINGDATE OF

CONSTRUCTION

NUMBER OF STORIES

APPROXIMATE

SQUARE FOOTAGEUTILIZATION

City Hall 1967 4 Stories 83,700 Municipal Building/Offices

City Hall – Annex 1960’s 2 Stories 19,300 Municipal Offices

Old Library 1960’s 2 Stories 21,800 Municipal Building/Offices

TOTAL 124,800

PRCA and DCM

*FCA’s not performed, but

included to reflect space

utilization

1990’s Single story 9,664 Municipal Offices/Storage

12

CITY HALLMASSING PLANS

DEVELOPMENT OPTION 1: Retains City Hall (LOWER DENSITY)

• Design concept shows city hall remaining on the site (although designed in a way that

structure could be used for other purposes)

• Creates an iconic central plaza

• Improves pedestrian access, while keeping two existing entrances

• Centralizes the main pedestrian spaces and building frontages

• 3 parking structures serve all uses within the site

• Max. bldg. height - 7 stories

13


SUMMARY

Lot Area 430,808 ft 2

Acres 9.89

Zone RC-1 FAR 2.75

Total Maximum Buildable Area by FAR 1,184,722 ft2

Design Option Buildable Gross Area 933,693 ft2

Design Option Buildable Net Area 632,597 ft2

Design Option Resulting FAR 1.47

Design Open Space Area 76,613.14

Design Resulting Open Space % 18%

Design Bldg. Footprint Area 196,436 ft2

Design Bldg. Footprint Coverage % 46%

Design Maximum Levels 7

Total Civic Use Area 147,061 ft2

Total Commercial Use Area 50,351 ft2

Total Office Use Area 121,659 ft2

Total Hotel Use Area 31,488, ft2

Total Hotel Rooms 126 rm

Total Residential Use Area 168,170 ft2

Total Residential Units 210 du

Total Parking Required 993

Total Parking Provided 1,019

OPTION 1: Retain City Hall

LOWER DENSITY

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OPTION 1a: Retain City Hall MAXIMIZED DENSITY

SUMMARY


Acres 9.89

Zone RC-1 FAR 2.75


Design Option Buildable Gross Area 1,786,769 ft2

Design Option Buildable Net Area 1,184,578 ft2










Total Hotel Use Area 92,790 ft2




Total Parking Required 1,908


15


OPTION 1a Retain City

Hall MAXIMIZED DENSITY

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DEVELOPMENT OPTION 2: Redevelopment without City Hall

• Design concept intended to create a frontage to surrounding neighborhoods

• Improves pedestrian and vehicular access to the site

• Removes City Hall opening up the main site’s intersection for new possibilities

• Design proposes radiating main pedestrian and building frontages for pedestrian friendly

surroundings

• Three parking lots and street parking that serves uses within the site

17


OPTION 2: Redevelopment without City Hall

SUMMARY


Acres 9.89

Zone RC-1 FAR 2.75


Design Option Buildable Gross Area 1,335,372 ft2

















18

CITY HALL

CITY OF HOLLYWOOD

CITY HALL

2 6 0 0 H o l l y w o o d B l v d

H o l l y w o o d , F L 3 3 0 2 0

P a r c e l N o . 5 1 4 2 - 1 6 0 1 0 0 1 0

Recommendation:

Right size space utilization and reduce square footage

from 391 SF / FTE to standard of 180 SF / FTE

Maximize redevelopment density (market supported)

at City Hall Circle

Consolidate PRCA and DCM administrative functions

into City Hall; discontinue PRCA lease

Next Steps:

Evaluate cost and location options for 3 City Hall

scenarios:

1. Remain at City Hall circle

2. Relocate to another location

3. Variation of 1 and 2 (some functions remain,

other functions relocate)

Complete space programming to determine exact

space for new City Hall

Based on market data and recent sales comparables, CBRE believes the proceeds from the land value and tax revenue will be adequate to fund a new city hall facility while increasing the tax base.

19

HPD/ORANGEBROOK

CITY OF HOLLYWOOD

HPD/ORANGEBROOK

3 2 5 0 H o l l y w o o d B l v d

H o l l y w o o d , F L 3 3 0 2 1

P a r c e l N o .

5 1 4 2 - 0 8 - 0 1 - 0 0 3 0

Current Situation

• 14 +/- acre site available for

development (post referendum)

• Prime location: corner of Hollywood

Boulevard and S Park Road

• City is committed to build:

• New Police Department

Headquarters facility

• New golf course clubhouse

• Maximize remaining acreage for

commercial development that supports

tax base and complements renewed

golf course

20

HPD/ORANGEBROOKMASSING PLANSDEVELOPMENT OPTION 1: GENERAL CONCEPT

• Continue the east-west grid of streets

• Create a central park concept to also have a strong

north-south connection thru the site.

• Single family lots facing the existing single family

neighborhood, single family detached in the center

and townhouses on the north-east block.

• Hotel proposed along Park Rd adjacent to golf

course and clubhouse.

• Police Headquarters proposed on the middle block

(west side); easy access to the larger road

• Higher density building blends better to the higher

density buildings to the west

• City Hall proposed on the same block as the Police

Headquarters sharing parking structure

• 2 and 3 story building provide a transition from the

single family units to the higher density buildings.

• Clubhouse is located at the south-east corner

(proximity to the golf course and also to the

existing drop-off)

21

HPD/ORANGEBROOKMASSING PLANS

DEVELOPMENT OPTION 1:

SUMMARY

Lot Area 646,503 ft2

Acres 14.84






Design Bldg Footprint Area 113,856 ft2

Design Bldg Footprint Coverage % 18%


Total Civic Use Area (Police/City Hall) 264,673 ft2









22


DEVELOPMENT OPTION 2: GENERAL CONCEPT

• Continue the east-west grid of streets

• Create three connected green spaces from north to

south

• Single family neighborhood to the east, adding

mid-density buildings to the east of the site

• Police Headquarters is located at the middle of the

design

• Higher density portion facing the internal street of

the design.

• Office is located at the North-West parcel, making it

the anchor (benefits from direct access to

Hollywood Boulevard)

• Other two blocks can be multifamily or hotel

depending on market

• Clubhouse is located at the south-east corner

(proximity to the golf course and also to the existing

drop-off)

23


DEVELOPMENT OPTION 2:

SUMMARY

Lot Area 646,503 ft2

Acres 14.84


















24

HPD/ORANGEBROOK

CITY OF HOLLYWOOD

HPD/ORANGEBROOK

3 2 5 0 H o l l y w o o d B l v d

H o l l y w o o d , F L 3 3 0 2 1

P a r c e l N o .

5 1 4 2 - 0 8 - 0 1 - 0 0 3 0

Recommended Next Steps

• Finalize Police Department space program

(underway)

• Master plan the site to maximize commercial

development

• Consider relocating citizen service functions

from City Hall

• Subdivide parcels the City will continue to

operate

• Issue RFP for commercial development on the

commercial development parcels

25

CULTURE AND COMMUNITY CENTER

CITY OF HOLLYWOOD

BEACH CULTURE AND

COMMUNITY CENTER1 3 0 1 S o u t h O c e a n D r i v e

H o l l y w o o d , F L 3 3 0 2 0

P a r c e l N o .

5 1 4 2 - 2 4 - 0 1 - 0 0 1 1

Current Situation

Valuable and underutilized site

Highly utilized community center

Highly utilized public parking

Opportunity to monetize site and create

recurring revenue source to the City

Site size allows redevelopment to

accommodate parking and a new community

center on the existing parcel

Ongoing remediation is required in existing

facility due to moisture intrusion through slab

26


ENVIRONMENTAL REPORT SUMMARY

• Elevated humidity levels• High moisture content in

concrete slab• Inadequate ventilation in

floor system • Creates condition for

mold growth floor tile surfaces and joint lines

• Conditions have been mitigated over the years

• Exacerbated by tidal fluctuations associated with hurricanes and king tides

*Pricing for the repairs and remediation TBD.

27


CITY OF HOLLYWOOD

BEACH CULTURE AND

COMMUNITY CENTER1 3 0 1 S o u t h O c e a n D r i v e

H o l l y w o o d , F L 3 3 0 2 0

P a r c e l N o .

5 1 4 2 - 2 4 - 0 1 - 0 0 1 1


Determine needs for future Culture & Community

Center building

Redevelop the site to its highest and best use

Consider required future public parking

Utilize beachfront for public amenities /

broadwalk extension

Take advantage of market interest and readiness

in this market cycle to achieve renewed and new

community amenities and increase the tax base

28

1203 NORTH FEDERAL HWY

CITY OF HOLLYWOOD

NORTH FEDERAL LAND1 2 0 3 N o r t h F e d e r a l

H o l l y w o o d , F L 3 3 0 2 0

P a r c e l N o .

5 1 4 2 - 1 0 - 0 5 - 0 0 3 0

• Underutilized City owned asset –

potential for revenue generation

• City acquired property in 2014

• Approximately 0.45 Acres

• Located within the City’s Regional

Activity Center and zoned FH-2

• Mixed-use development planned in

surrounding area (10 story residential

with street retail)

Current Situation

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1203 NORTH FEDERAL HWY

CITY OF HOLLYWOOD

NORTH FEDERAL LAND1 2 0 3 N o r t h F e d e r a l

H o l l y w o o d , F L 3 3 0 2 0

P a r c e l N o .

5 1 4 2 - 1 0 - 0 5 - 0 0 3 0

Broadly market the property

Issue a RFP to competitively solicit offers

from interested developers

Negotiate proposals received that are in the

City’s best interest (mix of uses and return to

the City)


30

Other City-owned Sites

b

• Finalizing Land Development and Disposition Agreement with Park Road Development, LLC

• Preparing Item for Commission Consideration March 18, 2020

1600 South Park Road

31


b

• Re-advertised P3 Opportunity

• Information Currently Posted on City Website

• Submissions Due March 12, 2020

University Station

32


b

• RFP Issued

• Information distributed via Bidsync

• Submissions Due March 23, 2020

2717 Van Buren Street

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bCommission Discussion/Questions

Documents

Hollywood Real Estate Workshop Presentation - February 2020