Related Loses $5 Million If They Don’t Build Anything At 520 Biscayne

Related Group is putting some skin in the game in their bid to take control of Miami Dade College’s prime property on Biscayne Boulevard.

An email from a Related representative explains that should the developer beat out three other bidders for the property, they will pay out $5 million to the college for the option on the land.

If they sit on the property for five years and fail to build anything, they would forfeit the $5 million. However, they would be able to pay another $5 million to the college to hold the land for an additional five years, according to documents submitted by Related.

(Rivals have pointed out that this could be a cheap way to keep the land undeveloped and keep out competitors.)

If Related does move forward with construction, they would put $50 million of equity into building the public elements portion of the proposal. They would also cover another $15 million in naming rights if a sponsor cannot be found. The remainder of the public elements portion will be financed through TIF funding.

 

The email from Related:

1) Related would give MDCC $50,000,000 up front of its own cash (not borrowed using tax payer funds but as outright cash payment to pay for public improvements for College).

2) Related would further guarantee $15,000,000 in naming rights. That is, if College could not obtain these funds, Related would give this amount to the College. This would serve as an additional guaranteed cash payment towards the public improvements.

3) Additionally, Related would give 10% of every dollar of revenue derived from condo sales in excess of $750 per square foot. For example, we are projecting sales at $850/sf thereby creating an ADDITIONAL $5.3 million of proceeds to the College.

4) Related would charge no developer’s fee but would build at its cost.

5) Related, will guarantee lien free completion as it would use no Community Development Bonds or other obligations that could cause the College to be foreclosed on land and improvements.

6) Related’s proposal is not contingent on condo sales, market fluctuations, financing etc. When reaching and executing their agreement, Related will put up $5 million dollars which they will lose should project not go forward. Once construction starts, Related will give a completion guarantee as well as a guarantee of lien free completion.

 

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Anonymous
4 years ago

Relateds main purpose seems to be to stop Nader from building a competing Art museum. Nothing else.

Anonymous
4 years ago

So a bribe essentially.

Ricky
4 years ago

Cash upfront and no art whatsoever. Yet, Nader is willing to give thousands and thousands worth of Art. Filling up the Museum.

Anonymous
4 years ago

Millions worth of Art. Quality art that would bring collectors and art buyers to Downtown since his collection would be top.

Anonymous
4 years ago

Btw the board meeting is open to the public next Thursday May 19 at the Wolfson Campus downtown.

Anonymous
4 years ago

Can you provide any more meeting info? Would love to attend.

Anonymous
4 years ago

So they are just trying to pull a Developer’s filibuster??? Is this supposed to be ok? How much more obvious can it be that Related is just trying to control the current market… I’m not a developer but this doesn’t seem ethical to me.

Anonymous
4 years ago

They should go back to the drawing board. It’s not about Related, I don’t really care who builds what. It’s the poor aesthetic design and lack of creativity. It’s as if it’s a carbon copy of One Miami. Those buildings have been done before so many times, even by themselves….YAWN!!!!!!

HP
4 years ago

I hope Related gets the message…they need to hire another architect…they need to think outside the box and reinvent themselves…they are no longer original and frankly they are building so much that they are forgetting to do quality work

Anonymous
4 years ago

I completely agree with what you guys are saying but they currently have no need to reinvent themselves.. Their projects are still dominating the market and units are still selling. They get projects built.

Anonymous
4 years ago

Related are experts at building projects but in my opinion Miami has reached a new level. I like related and they have built a big part of Miami but you are only as good as your last day.

Anonymous
4 years ago

Sleazy, cheap, tacky related.

Anonymous
4 years ago

I read the Related email provided by this article. I wonder if Related is aware that it is not MDCC anymore but MDC. Or maybe they just don’t really care who it is as long as they win the bid, get the land, and eliminate the competition. Art ?? We don’t need art. Who the hell wants art ? Go buy a condo !

Anonymous
4 years ago

No art and buy condo has become Related’s mantra.

Anonymous
4 years ago

How do they lose anything? They are paying for an option on the land. They receive their option. That is how it works.

Anonymous
4 years ago

Related needs to sell thousands and thousands of apartments they already put in the market before they touch that MDC site. That is why they are just holding it for 10 years .
They have no interest in building anything there until they sell their units first.
They just want to grab the land and build there when is good for them.
How can they build a cultural center with no art? an sculptural garden with no sculptures?
Who they think they are fooling again and again and again?
That really have no shame and no interest in MDC needs.

Anonymous
4 years ago

Seems like everyone wants to shit on Related. At least they get things done, which is a forgotten virtue in South Florida. These buildings aren’t my first choice either, but are they really that bad? Nobody is building a Chrysler Building these days, which means we’re stuck with glass. A couple buildings with some angles will contrast beautifully against the Freedom Tower (and it’s classic decadence) as well as the other more generic rectangles poking the sky.

Anonymous
4 years ago

Completely agree with you and it’s very similar to what I said above. Would people rather have nothing built in Miami than Related? No way. Related gets shit done and is helping to transform the skyline and add density.