Boca Raton Hires Consultant for City Hall Replacement, Proposals Due in January

The site of a proposed city government and redevelopment project near the Brightline station in Boca Raton, FL. (Photo: Boca Daily News)

After a week of discussion, Boca Raton officials voted Monday to approve a contract with CBRE, a national real estate and development consulting firm, to help evaluate proposals for a major redevelopment project that would create a public-private partnership near the city’s Brightline rail station. The partnership would include the construction of a new government complex, plus residential and commercial development that would revitalize the area around the railroad tracks and centrally locate city services in a modern complex.

The project has the potential the spur $1.9 billion worth of real estate, much of which would be added to the city’s ratable base aside from the government complex itself.

The city has already received two unsolicited proposals to develop an area of about 30 acres surrounding the Brightline station, however CBRE will be responsible for “marketing” a call for proposals to firms that, presumably, are familiar with Boca Raton and the aim of the project. The development would likely include a government complex, thousands of apartments, hundreds of thousands of square feet of commercial space and, potentially, a hotel or conference center.

“Capitalizing on the Brightline station location, the project will create a pedestrian and bike friendly environment that connects people to a mixture of employment, businesses and living opportunities,” a resolution appointing CBRE said. “The project will be impactful in terms of the long-term influence on community character, the city’s ability to deliver services and its financial condition.”

“The identification and selection of the development team that will work with the city to achieve its vision is critical to the success of the project,” a summary of the measure published by city staff stated.

City council members have repeatedly likened the selection of a private firm to finding a “dance partner” who will follow the lead of the governing body in developing a plan for the area. CBRE will work with the city from the receipt of unsolicited offers through the execution of a master development agreement. The firm will analyze proposals and guide officials toward choosing the right partner based on a slew of factors.

The city will pay a monthly retainer of $20,000 to CBRE through its tenure as consultant beginning Jan. 1. The process, however, is expected to move quickly, with proposals required to be submitted by a Jan. 9, 2025 deadline. Previously, officials have said an agreement with a private partner may be reached as soon as May 2025, once all of the proposals received are digested and analyzed.

“CBRE will complete a thorough analysis of the financial projections and plans of the developer and opine on their feasibility and reasonableness,” the resolution stated.

The city will also pay CBRE a one-time mobilization fee of $40,000, and will receive a technical review fee of $375,000 from the chosen redeveloper after the council makes its selection. The firm will receive, in addition, a brokerage commission in the amount of $2.8 million from the successful developer 30 days following the execution of an agreement.

The Boca Raton Brightline station. (Photo: Boca Daily News)

CBRE will reimburse the city for the mobilization fee and retainer fees up to $240,000 if one of the two unsolicited proposals are ultimately chosen. The company will reimburse 50 percent of the fees if a different partner is chosen. It is anticipated that the city’s direct cost will be approximately $150,000 if neither of the first two proposals are selected, and it is possible the city will bear no costs if one of the first two proposals are chosen.

Some members of the city council said they were not completely comfortable with the level of reimbursements negotiated with CBRE, but ultimately voted in favor of the contract since they want to see the project advanced after being under discussion for so long.

“I have had a little bit of discussion with CBRE about my discomfort with some of the reimbursements, and when it comes to the two unsolicited offers we received so far,” Councilwoman Fran Nachlas said. “I just want to say, going forward, I hope everyone listens to what we all have to say up here and follow what we’re saying.”

Nachlas’ comments were echoed by Deputy Mayor Yvette Drucker.

“For staff, listen to council’s direction, because we’re giving direction,” she said. “We’ve known what we’ve wanted for a long time. It’s hard – it’s a hard process – because we up here can’t talk to each other due to the Sunshine Law, and you don’t know what everyone is thinking. The most important part of this entire process is communicating and understanding the needs of the council.”

Councilman Andy Thompson referenced the “dance partner” analogy, generating a few chuckles from the audience.

“The real value is going to be provided in helping us identify the best dance partner,” he said. “There are some folks who knew that there was a possibility to redevelop our downtown – they put in a submission, great! They don’t need to be marketed-to, but CBRE’s real value will be in identifying which dance partners are the best dance partners, and how to negotiate the best contract with them.”

“Even if one of those original submitters gets selected, there is still much to be done in terms of identifying the best relationship to determine how we’ll be going forward together,” he added.

Mayor Scott Singer said that even after a lengthy discussion last week, CBRE was willing to continue negotiating its fees, ultimately settling on the flat-rate style agreement that was approved at Monday’s special meeting.

“I think CBRE will be doing its work and earning its fees by helping shepherd us through the process even before the responses are due before Jan. 9,” he said.

Singer added that the council “is going to trust” CBRE will solicit proposals from firms that are already familiar with the city and its plans, since some officials had expressed concern that parties unfamiliar with the history or goals of the project would attempt to parachute into the process.

“They need to be prepared to engage us with specific facts,” he said.

The council approved the appointment unanimously.