Hyatt Regency riverfront redevelopment on table

A high-profile riverfront property in the heart of downtown Miami is headed for a long-promised rebirth.

The City of Miami owns the land that is home to the aging and dated James L. Knight Convention Center and its private partner next door, the Hyatt Regency Hotel.

A new plan to build three new towers of mixed-use on the Miami River site is on the city commission’s agenda for today (7/28).

Commissioners are set to consider two resolutions for the latest proposal, which would require going to city voters at a special election.

The first would have the commission submit to voters a proposed amendment to the city charter to authorize the commission by four-fifths vote to waive competitive bidding and execute an amended lease with existing tenant HRM Owner LLC to provide a new 99-year term and expand the lease to include the existing Hyatt Hotel and James L. Knight Convention Center property at 298, 300, 330 and 400 SE Second Ave.

The new lease would provide for redevelopment to include at least a 615-key hotel, 188,000 square feet of convention/meeting space, 682 apartments, parking, additional public open space, and an expanded public riverwalk, all at no cost to the city.

The second resolution would direct the city attorney to prepare the proposed amendment to the charter and approve the ballot language for a special election Nov. 8.

The charter requires that the sale or lease of waterfront property owned by the city must be approved by voters.

The proposed ballot language for Nov. 8 states:

“Shall Miami’s Charter be amended authorizing city to amend existing riverfront Hyatt lease with HRM Owner LLC, including adjacent Knight Center property, extending to 99 years, waiving bidding, and requiring, at no cost to city:

■ Additional open public space along Miami River;

■ New Hyatt Hotel, additional parking, convention space, apartments;

■ Increase minimum annual rent paid to city from $250,000 to $2,500,000 or 2.5% gross revenues;

■ $5,400,000 Affordable Housing Trust Fund contribution;

■ Expanded public riverwalk?”

The resolutions were prepared by the city’s Department of Real Estate and Asset Management.

For many years, city officials have considered plans designed to improve vehicular traffic flow in the area, and an improved pedestrian experience including better public access to the river. Those plans were not fully pursued.

A background memo details the history of the site.

The city entered into a long-term lease on Sept. 13, 1979.

On Oct. 28, 2021, the city commission in anticipation of pursuing a redevelopment or significant renovation, authorized the assignment of the original lease from Hyatt Equities LLC to HRM Owner LLC.

The original lease has a remaining term, including renewals, of about 50 years, and would require additional renovations.
Last October, city and Hyatt officials announced that Hyatt was bringing in a new partner.

The city owns the 4.2-acre riverfront site on Second Avenue, adjacent to the Brickell Avenue Bridge.

In 2018, Hyatt Equities LLC wanted an extended lease in order to build a new Hyatt Regency hotel and two residential towers, a plan that included demolishing the convention center.

Hyatt officials were met with some resistance, and city commissioners pushed for a better offer.

Time ran out in the summer of 2018 and the matter never made it onto a city ballot, required by charter for lease of city-owned waterfront properties.
City officials reported then that it was Hyatt that pulled the item from consideration.

“The item was pulled by Hyatt so that Hyatt could continue to work on plans, with their architect, and work on the actual lease agreement, and the development process (including their own selection process for a developer, a formal development order, an operating agreement with their future development partner, etc.),” said city representatives.

Last fall, commissioners approved a request from Hyatt to assign its interest in the lease to a new entity, HRM Owner LLC, indirectly be owned 50% by a subsidiary of Hyatt Hotels Corp. and 50% by a subsidiary of KA Platform Holdco LLC (Gencom).

A document explaining the joint venture said, “Hyatt Equities is seeking to redevelop the Hotel and the Convention Center into a world-class, mixed use project which will include one or more high-end, Hyatt branded hotels, and potentially multi-family housing and/or retail components, such components to be determined.

“To facilitate a potential redevelopment, Hyatt Equities has been seeking a partnership with an experienced hotel and hospitality focused developer to help pursue, finance and facilitate the potential redevelopment project.

“After discussions with several potential developers, Hyatt has selected the Miami based investment firm, Gencom,” it reads.

The new development will be called Miami RiverBridge.

Today’s agenda includes supporting documents for commissioners to consider including “The Miami RiverBridge Conceptual Presentation,” which lists Hyatt, Gencom and architectural firm Arquitectonica behind the expansive redevelopment plan.

The presentation includes several new renderings of the planned towers, open space and expanded riverwalk.

It notes that the new development will result in open space of 57,080 square feet, a 67% increase in existing open space at the property.