Miami city administration building cost rises $100 million

After a years-long search for a new headquarters, Miami is setting its sights on the city’s now-closed golf course adjacent to the rising Miami Freedom Park to construct a modern, $250 million administrative building – $100 million more than had been planned earlier.

As the city commission reconvenes after summer recess today (9/14), one of the first orders of business is to update a four-year-old resolution in preparation to move Miami’s main government campus from its current home at a prime Miami River location downtown. If approved, the new order will declare the city’s intention to relocate its municipal center to the former Melreese Golf Complex.

The City of Miami has been searching for a new location for its administrative building for nearly a decade. Originally constructed for Florida Power & Light offices, the current tower located at the Miami Riverside Center at 444 SW Second Ave. is nearly 30 years old. In 2015, city officials said the property was “functionally obsolete” and needed replacement.

Around that time, then-city manager Daniel Alfonso said the land along the river had become valuable and the administrative building was not the “highest and best use” of the site. In 2016, the city issued a competitive solicitation via a request for proposals (RFP) for the development of a 375,000-square-foot facility with new Class A office space within the city limits to “functionally, securely and conveniently serve Miami’s residents.”

The bid was ultimately awarded to Lancelot Miami River LLC, an affiliate of real estate development firm Adler Group. Lancelot proposed a 90-year ground lease for the riverfront site, citing the developer’s unique position to maximize the value of the city-owned land given that Adler owns the adjacent property directly to the north, which includes the access easements to the Miami Riverside Center and the plaza in front.

In January 2019, the city passed a resolution selecting 230 SW Third St., owned by Lancelot, to be the site of the new administrative building. Later that summer, the city declared its official intent to issue tax-exempt special obligation bonds totaling $150 million to reimburse itself for costs associated with the project.

However, after years in the works, the city chose not to pursue the plan to have the new building erected next to its current headquarters on the Miami River. In July 2021, Miami Today reported that an attorney for Adler/Lancelot said, “The city is exploring other options for its administrative building and we want to move forward.”

Nearly a year later, in June 2022, the city commission selected a city-owned property near Miami International Airport at the former Melreese Golf Course for the new building. The location, 1802 NW 37th Ave., is right next door to the Miami Freedom Park, soon to be home to the Mas brothers and David Beckham’s Major League Soccer stadium and a commercial park slated to open in 2025.

Now, the commission will hear yet another resolution to declare its intent to rehouse its office tower at the Melreese site. The legislative item aims to update the original 2019 order, with a $100 million increase in funding, bringing the grand total to $250 million.

If approved by the commission today, the resolution will go to the mayor’s office for his signature before becoming official.