Q&A: A look at the BahiaMar issues
FORT LAUDERDALE It’s not just tall buildings city commissioners will be discussing when they takeuptheproposed redevelopment of the Bahia Mar marina and resort Tuesday. They also have to figure out whether it’s a good financial deal for the city.
The $400 million project includes a pair of 39-story condominium towers that would be the tallest on the city’s barrier island. The project requires a new lease with the developer that would tie upthe city-ownedproperty for the next 100 years.
Here’s a look issues involved.
What’s happening commission meeting?
The commission will consider approving a rezoning and site plan to allow the condominiums, grocery store, public promenade, restaurants, parking garage and other pieces of the project. They’ll also consider a master lease and a second lease for the project’s first phase — with two others to be
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the considered later this month. The commission meets at 6 p.m. at City Hall, 100N. Andrews Ave.
How does the proposed master lease compare with the current lease?
The new lease would “provide significant economic and fiscal benefits to the city,” according to an economic analysis done for the city by Fishkind& Associates. The city has been making about $1.5 million a year recently from the existing lease. Fishkind estimates those numbers could jump to $3.2 million annually by 2025 and to $4.2 million annually by 2045 under the proposed lease. What’swrong with that? Critics say the 39-acre property is worth a lot more, and Fort Lauderdale is giving it away at a bargain price. They’ve requested the citydoamarket appraisal to determine how much money the city should receive.
Why hasn’t the market appraisal?
CityManager LeeFeldman said the city did one in 2012 during negotiations with a previous leaseholder. But he said one thing
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done those appraisals can’t calculate is how much value the property loses by having the current longterm lease attached to it.
Why doesn’t the city see if it cangetabetter deal fromsomeone else?
The city can’t seeknewproposals because they’re stuck with the current lease that doesn’t expire for another 46 years. While the developers are hoping for a new lease, they can still make money from the hotel and marina under the current terms — without having to build any of the public improvements that the city would like to see.
What would a new lease mean for the Fort Lauderdale International Boat Show?
The boat showis booked at Bahia Mar until 2020. Commissioners fear the boat show, a major economic engine for the city, couldmove out of the city if something isn’t done to keep it at Bahia Mar. The proposed lease requires the developer to get a 30-year commitment from the boat show to stay at BahiaMar.
Howis the city protected?
The master lease gives the developer 120 days to finalize a longterm agreement with the boat show. If no agreement is reached, the lease is terminated and the previous lease resumes. It also requires the public promenade along the Intracoastal Waterway be finished within seven years and before any condo residents move into their units. Whoare the developers? The current lease is held
by Rahn Bahia Mar LLC, which bought it from LXR Resorts in 2014. The group is headed by Jimmy and Kenny Tate of Tate Capital in North Miami. It also includes Sergio Rok of RokAcquisitions, Rialto Capital Management and Robert Christoph of RCIMarine.
lbarszewski@tribpub.com or 954-356-4556