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Commission moves forward on 1691 Michigan rooftop office plan; developer offers expanded investment and community benefits
Summary
The commission approved referring a proposed amendment to the 1691 Michigan lease (rooftop office/amenity project) back to the finance committee for final term review; the developer proposes roughly $110M in additional private investment, public benefits and a higher guaranteed minimum rent in exchange for added lease extension options.
Commissioners advanced review of a proposed expansion and lease amendment for the 1691 Michigan property (office/parking asset) on April 22, instructing the Finance Committee to finalize terms before returning the package to the commission.
Developer proposal: Robert Ravani's group proposes completing a major rooftop conversion — adding approximately 36,000 sq ft of office space and active rooftop amenity areas above the existing parking deck. The firm has committed substantial private capital (an additional $50–$60 million by the developer with further buildout investment discussed) and offered increased minimum rent and a share of gross receipts in return for negotiated lease extension options.
Public benefits and terms under negotiation: Staff said key outstanding commercial negotiation points are (1) a stepped increase to the guaranteed base rent (current base approximations discussed at roughly $300k annually, proposed uplift toward about $500k once the new phase is built), and (2) how the lease resets are handled at mid‑century and later rent‑reset points (the developer has requested caps on rent resets tied to market analyses; the city is negotiating fair market protections). The proposal also includes a set‑aside of parking spaces for public use and workforce parking during hotel construction cycles, and other community benefits (support for senior programming among them).
Why it matters: The site sits at the end of Lincoln Road and would add modern, leased office product to the corridor, helping diversify the city's economy and capture public revenue from a city‑owned asset. Commissioners praised the developer's reported recent leasing success (building occupancy rising from roughly 35–40% to 80–90% after investment) and voted to have FK review and approve final financial terms before coming back to the full commission and, if required, a referendum.
Quote: "We now have four publicly traded companies headquartered in Miami Beach," said one commissioner, calling the project a rare economic-development opportunity that would bring office jobs and long‑term tax/revenue gains.
Next steps: Staff will finalize the draft term sheet and return to the Finance Committee (FK) for a May review; first and second readings and a November referendum may follow depending on the structure of lease extensions and legal requirements.
