City of Miami administration building costs rise again

Two weeks after approving $250 million for a new city administrative building, Miami is looking to up the pot by another $35 million.

Today (9/28), the Miami City Commission is to decide whether to authorize the issuance of special obligation bonds for costs associated with redeveloping the municipal headquarters. If approved, the total would increase yet again to $285 million, with $18 million of the additional funding to be transferred from another capital project previously budgeted for software upgrades.

On Sept. 14, the commission unanimously approved a resolution declaring the city’s intent to relocate its offices to the former Melreese Golf Course for $250 million, an amount significantly higher than the $150 million originally allocated in 2019.

Now, the project could benefit from another $35 million funding boost.

Per the resolution before the commission, the city wishes to terminate a 2022 Municipal Payment Plan Agreement (MPPA) with Oracle Credit Corp. for $18,805,761. The capital project was to include the setup of a new cloud system and software applications.

The city stated it “never incurred debt pursuant to the MPPA” and believes it’s in the city’s best interest to terminate the agreement with Oracle.

The resolution further declares the city now wishes to issue $285 million in special obligation non-ad valorem revenue bonds to finance construction of its new administrative building.

In May, the city’s finance committee recommended approval to issue bonds to pay for the cost of the project.

The City of Miami has been looking to reposition its administrative campus for nearly a decade after officials declared the current office tower within the Miami Riverside Center at 444 SW Second Ave., which was originally constructed for FPL use, “functionally obsolete” in 2015.

The search concluded in June 2022 when the commission selected city-owned property near Miami International Airport at the former Melreese Golf Course for the new building to rise. The location, 1802 NW 37th Ave., is adjacent to the Miami Freedom Park, soon to be home to David Beckham and partners’ Major League Soccer stadium and a commercial park slated to open in 2025.

The only project details available are those specified in the initial 2016 Request for Proposals for the development of a 375,000-square-foot facility with new Class A office space within 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.

If approved, the latest resolution will authorize the city manager to negotiate and execute an amended agreement with Lancelot for the development, construction and equipping of the new administrative building and for related capital improvement projects at the Melreese site.