Parcel #3 is a City-owned 34,312 square foot vacant commercial out-parcel at the southeast corner of S. Orange Avenue and E. South Street within the 2 block site of the new Dr. Phillips Center for the Performing Arts. As required by Section 163.380, Florida Statutes, and Section 3.8 of the Orlando Performing Arts Center Agreement dated June 20, 2007, as amended (Arts Center Agreement), the disposition and development of Parcel #3 was advertised and marketed through an open and competitive selection process that consisted of the following:
1 - On December 3, 2014, a sign was placed on the site informing interested parties of the availability of the site for development of an upscale, full service boutique hotel.
2- On January 5, 2015, a public notice was placed in the Orlando Sentinel inviting interested parties to submit a proposal by February 4, 2015.
3- DPAC and the City sent notices out to parties who had expressed an interest in developing the site over the past year.
4- A 5 member Selection Advisory Committee consisting of 3 representatives of Dr. Phillips Center and 2 representatives of the City was formed to review proposals and make a recommendation to City Council.
In response to the competitive selection process, the City received one proposal from a development team consisting of DOD, Revolutionary Road Hospitality Group, Hilton Curio Hotels, PCL Construction, The Getty's Group and CBRE Hotels. The development proposal includes an 8 story, 155 room, LEED Certified, luxury boutique Hilton Curio Hotel with outdoor balconies and a rooftop bar overlooking the Seneff Arts Plaza, colonnades along South Street and the Seneff Arts Plaza, a 2 level parking garage with more than 130 parking spaces, ground floor restaurant, 3000 sf kitchen, 2 ballrooms, spa, and rooftop, infinity edged pool.
The selection criteria that was distributed indicated a preference for a ground lease transaction, but allowed for the possibility of a purchase. The proposal offered a $5,000,000 purchase price ($145.72 psf) or a $315,000 per year ground lease with CPI increases.
The Selection Advisory Committee convened on February 17 to discuss the proposal, and on March 11 the development team made a presentation to the Committee and responded to questions from Committee members. On March 26, the Committee convened to discuss the proposal. There was discussion on the terms, the proposal itself and the timing for construction and completion. By a vote of 4-1,the committee passed a motion to accept the proposal subject to the successful negotiation of a ground lease within 120 days from City Council approval with up to 2 additional 30 day time periods to negotiate the lease at the City's sole option.
Copies of the minutes of the Selection Advisory Committee meetings are attached. Copies of the Development Team’s Proposal and Presentation are available in the Real Estate Manager’s Office.
Accept the committee's recommendation and authorize the Real Estate Manager to negotiate a ground lease on terms mutually acceptable to the City and the Developer, including, but not limited to, terms for design and construction requirements and conditions for the hotel, term of lease, rental payments, and other applicable lease terms, within the time period set forth in the Committee’s motion, subject to review and approval by the City Attorney's Office.
Final approval of the lease is subject to City Council approval at a duly-advertised public hearing as required by Ch. 13, Section 7 of the City Charter.