Hollywood Beach Cultural and Community Center Redevelopment
The City is working with the Related Group on a public-private partnership (P3) to build a new ocean-front community center on Hollywood Beach at Azalea Terrace. In addition to the new community center, the proposed project includes an expanded public park, enhanced dunes and open space and additional public parking. This would be funded through the development of a 135 - 190 unit condominium building on the property fronting A1A. The approximately 3.5 acre site currently houses the City’s Hollywood Beach Culture and Community Center, Harry Berry Park and two surface parking lots. Additional information is provided on this page, please continue to scroll down to learn more.
Background and Process Overview
In February of 2020, the City Commission discussed the condition of the current community center and development interest in this site in a public Commission Real Estate Workshop. The direction was to broadly market any opportunity to redevelop the site to achieve the best possible proposals for the benefit of Hollywood residents. By the end of March, the City received an unsolicited proposal for the redevelopment of the site. The unsolicited proposal was determined to be a qualifying project as required by the state public-private partnerships statute, and the city issued the required Notice of Receipt of an Unsolicited Proposal and a willingness to accept competing proposals. The City’s real estate advisory firm, CBRE, marketed the opportunity nationally and internationally to more than 20,000 development contacts. The proposals were due in September 2020, and by October, the proposals were in technical review. In January 2021, the City Commission received an overview of the top 4 proposals in a public meeting, and in February, the firms submitted their best and final offers based on Commission and community feedback. This resulted in a final ranking, and on March 17, 2021, the City Commission approved the final ranking and authorized negotiations with the Related Group, the top ranked proposer. Weekly meetings between City staff, advisory consultants CBRE, and Related Group took place to develop a term sheet for the project. The term sheet was presented to the Commission at the August 25, 2021 Regular City Commission meeting. The proposed Comprehensive Agreement and Ground Lease Agreement were presented at the February 2, 2022 Regular City Commission meeting. The item was continued to the March 16, 2022 Regular City Commission Meeting where the agreements were approved. Development Plans will need to go before the Planning and Development Board and City Commission for final approvals. Ongoing community outreach opportunities and negotiations on programming and design for the public amenities will continue. Links to presentations, artist rendering, video animation, and video archive of the meeting can be found in the "Additional Resources" section below.
Proposed Public Improvements
The Related Group continues to work with the City to gain public feedback on the proposed public improvements and make adjustments to the plan based on feedback from the community. The first Community Input Session was held on Thursday, June 17, 20201 as a way to gain an understanding of what the public would like to see as part of the redevelopment of the site. Many of these improvements to the property, as part of the overall project, have been enhanced based on input from interested residents, including those who live in buildings nearby or adjacent to the site. Several public improvements of the proposed project include a new 2-story oceanfront community center, expanded public park, enhanced dunes and open space, and additional public parking.
Proposed Public Improvements Includes:
- 25,500 SF Oceanfront community center with 2,385 SF public restaurant/coffee shop/snack bar, public library, 5,025 SF banquet/ballroom, conference/meeting space, fitness center. The current center is 16,716 square feet and is comprised of an auditorium with stage, various meetings room and a public library space. Approximately 8,800 SF of additional public space.
- 2,630 SF elevated outdoor, oceanfront terrace
- 43,065 SF Harry Berry Park including modern public restroom facilities, outdoor showers and state of the art children's playground. Currently the park is 18,500 +/- SF. Approximately 24,565 SF of additional park space.
- 12,150 SF Public Plaza area and Event Lawn
- 13,125 SF Landscaped Sculpture Park along A1A.
- 148 - 158 Public Parking Spaces - 80 covered garage spaces, and 68 - 78 on-street spaces. Expanded vehicular clearance inside the Public Parking Garage (20 feet) to allow for high clearance vehicles and equipment. Currently there are 121 total public parking spaces, and increase of 27 - 37 public parking spots.
- Preservation of dunes with ADA accessible beach crossovers.
- Additional and expanded sidewalks
Proposed Residential Component Includes:
- 26 to 30-story condominium, including private parking for unit owners and amenities. Proposed height of 303 to 353 feet. (High-rise buildings in the south central and south sections of Hollywood Beach range from approximately 215 to 483 feet.
- 135 to 190 units (reduced from 300)
- Project, designed by Arquitectonica, is set back 513 feet from the beach along state road A1A/Ocean Drive to preserve the view corridors of neighboring condominiums
- Designed for current sea level rise projections
- Commitment to Green Building to achieve LEED Gold or comparable certification and to be a model for environmental resilience
City's Project Team and the Related Group are working on a Comprehensive Agreement and Ground Lease to be approved by the City Commission that will include all business and financial terms and operating conditions, as well as legal protections for the City as the owner of the land.
The project as currently proposed, provides the following financial return to the City:
Initial Proceeds (based on 14% of gross condo sales)*
- $10 million initial rent payment to the City at start of construction
- $10 million estimated cost of new community center, park, plaza, sculpture garden and other public improvements
- $16 to $35 million estimated closing rent payment
*Minimum guarantee of $35 million for initial rent, funding for improvements, and closing rent—Based on current market sales initial proceeds are projected to exceed $40 million
- $1.9-$2.3 million in property taxes
- $297,500 - $400,000 (adjusted annually for CPI) ground rent
- $67,500 - $95,000 estimated annual revenue from .25% payment on resales
- Revenue from Parking Fees, Restaurant Rent and Facilities Rentals
Total projected yearly revenue to the City: $2.7M - $3.3M
- The City retains ownership of the land and public facilities
- All improvements, public and private, will be built at no cost to the City.
- Project will be effectuated through a long-term ground lease from the City, as landlord, to Developer, as tenant for 99 years.
- Private facilities will be owned by the tenant for the duration of the lease
- Prohibition on short-term rentals
PLEASE NOTE: Terms provided on this webpage are part of a proposal. Terms are subject to change.
Proposed Business Agreements
Please take a moment to review the proposed Comprehensive Agreement and Ground Lease. Please note: these agreements have been updated since the February 2, 2022 meeting. The updated, proposed agreements may be reviewed by clicking on the following links:
- VIDEO: March 16, 2022 Regular City Commission Meeting
- Presentation to City Commission: February 2, 2022
- VIDEO: February 2, 2022 City Commission Meeting
- VIDEO: August 25, 2021 Project Update to the City Commission
- TERM SHEET PRESENTATION: August 25, 2021
- VIDEO: June 17, 2021 Virtual Community Input Meeting
- Survey Results: June 17, 2021 Virtual Community Input Meeting
- Chat: June 17, 2021 Virtual Community Input Meeting
- VIDEO: March 17, 2021 City Commission Approves The Related Group as Top Ranked Proposer
- AGENDA BACKUP March 17, 2021 Regular City Commission Meeting
- Comprehensive Agreement
- Ground Lease
- Related Group Initial Proposal
- Related Group Initial Site Plan and Additional Studies
- 1974 Warranty Deed - Mailman Development Corporation
- 1974 Settlement Agreement
- 1981 Settlement Agreement
- 1994 Settlement Agreement
- State of Florida P3 Statute