Boca Raton hears updated financials from CBRE as four teams pitch downtown redevelopment; council to rank firms tomorrow

Boca Raton — CBRE presented updated, normalized financial summaries of four proposals to redevelop the downtown government campus at a Boca Raton City Council workshop Monday, Feb. 10, as developers and dozens of residents spoke for and against competing visions for downtown.

The presentation focused on financial changes since CBRE’s last briefing two weeks earlier, including standardized assumptions CBRE used to compare proposals: a 3% tax growth rate, a 4.5% discount rate, and a consistent civic-program model that assumes an 85,000‑square‑foot city hall and a 35,000‑square‑foot community center. CBRE said the tax increment from the projects remains in excess of $200,000,000 under the normalized approach.

Why it matters: Council members will rank the proposals at a meeting the council chair described as occurring the next day; the top‑ranked firm would enter negotiated, nonbinding interim discussions. The choice will shape whether the downtown campus leans more toward the city’s stated goal of public amenities and moderate commercial growth or toward larger mixed‑use, higher‑density development.

Key updates and developer positions - CBRE said the Namdar Group reduced its originally proposed multifamily units from 8,000 to about 3,600 after the city asked proposers to size civic components consistently; Namdar’s previously offered $415,000,000 in credits was revised to $328,000,000 in CBRE’s recalculation. (Leanne Korst, CBRE) - BRCC (as described by CBRE) increased its annual ground rent projection from $4,000,000 to $5,100,000, raised its hotel valuation per key from $25,000 to $40,000 and added a $10,000,000 allowance for off‑site improvements. CBRE also noted some proposers offered a 1% transfer fee on future sales. (CBRE financial summary, Mike) - Related Ross said it is prepared to work within the existing downtown height limit and is willing to swap some office for residential, if needed, but said it is aiming to deliver a substantial office product to attract employers to Boca. “We are prepared to work within the existing downtown height limit,” said Jordan Vargas, senior vice president with Related Ross. - Roca Point positioned itself as a government/owner’s‑representative model that would act on the city’s behalf to design and construct public facilities; Danielle Handy described Roca Point’s focus as integrating public and private needs. - Terra/Frisbie (Boca Raton City Center) emphasized a smaller footprint and walkability, offering $10,000,000 for off‑site improvements including a proposed pedestrian bridge across North Dixie Highway and saying it would deed the Boca Cola graphics site to the city and lease it back under terms that would credit the city for that land’s value. David Martin of Terra said the team’s plan dedicates more than 70% of the site to public access and aims to retain recreation uses on site.

Public concerns and support Residents’ comments were sharply divided. Supporters of Related Ross repeatedly described the firm as a high‑capacity, long‑term partner that could deliver office product and jobs, citing Related’s projects such as West Palm Beach. Several residents said they want downtown to attract corporate jobs to retain younger residents and graduates from local universities.

Other speakers urged caution about scale, infrastructure, and recreation. Multiple residents sought guarantees that softball fields, tennis courts and other recreation facilities would be replaced or improved before any demolition. “Please don’t tell me that BrightLine is the solution,” said resident Roger Klein, expressing skepticism that regional rail solves local traffic impacts. Several parents and sports volunteers asked that any replacement softball fields be ready and operational before current fields are taken offline; speakers requested 3–4 replacement fields rather than fewer.

Specific program items mentioned - Terra/Frisbie said it would provide eight courts (four indoor, four outdoor) mixing tennis, padel and pickleball and proposed indoor/outdoor tennis retained at downtown rates. - Roca Point described a role as an owner’s representative for design and public‑facility construction. - Related Ross highlighted a $5,000,000 commitment to relocate or replace recreation facilities and said it was prepared to include long‑term affordable workforce housing in its program.

Timeline and next steps CBRE and staff reiterated the process timeline presented in the February briefing slides: council ranking of firms the next evening, an open house from the top‑ranked respondent on Feb. 19 from 6–8 p.m., ongoing public outreach, and a goal to complete a negotiated, nonbinding interim agreement with the top firm by March 18. CBRE emphasized any civic‑use square footage could continue to evolve as staff refines requirements for city hall, community center and police department relocation.

What the council did: The council did not make a final decision Monday. Mayor and council members agreed to take up rankings the following council meeting and to continue public outreach. Staff and CBRE said they would provide additional detail to council members on tax‑increment modeling and other assumptions if requested.

Facts and figures (as presented at the workshop) - CBRE normalized tax growth to 3% and used a 4.5% discount rate for present‑value calculations. - Namdar reduced multifamily units from 8,000 to ~3,600 and reduced its credit to the city from $415,000,000 to $328,000,000 after the city’s specified civic‑use sizing. - BRCC raised projected annual ground rent from $4,000,000 to $5,100,000 and added a $10,000,000 allowance for off‑site improvements. - Terra/Frisbie proposed $10,000,000 for off‑site improvements and the Boca Cola graphics parcel dedication; Terra said it would deed the parcel to the city and lease it back with a credit against rent for the agreed value.

Meeting context and community response The workshop included CBRE’s updated financial review, presentations by Roca Point, Related Ross, Namdar Group and Terra/Frisbie teams, and a large public comment period where supporters and opponents addressed scale, traffic, recreation and preserving community character. Council members asked follow‑up questions about the modeling assumptions, timing and CRA revenue phasing. Council members signaled they wanted to continue weighing tradeoffs between creating office product to attract employers and preserving open space and neighborhood scale.

A ranking by the council is scheduled at its next meeting; if the council selects a top firm, staff expects to begin negotiated, nonbinding interim agreement discussions with that firm and continue public outreach before finalizing any master development agreement.