Community Redevelopment Agency Board - Regular Meeting

Good morning, Is my mic on? Can you elevate the volume? Can we elevate the volume? Is that better? Okay, great. Thank you. So today, we are here for the conference meeting for the City Commission of Fort Lauderdale this 11/04/2025. Thank you all for being here today. So let us begin. We start with communications with the City Commission or the Education Advisory Board.

They sent us a communication asking for a partnership between the city and Broward County School District to find a location for public safety training facility. Not quite sure what that's all about. Someone from staff like to educate us as to what that means.

Sure. Mayor? Our fire department is interested in potentially having a public safety training facility at a school board site, and so I'll turn

it over

to the advisory committee. Are you Janet? Of course. Hi, Janet Gaultieri. You want to turn your mic on by pushing a button at the bottom of the speaker.

Got it.

Got it. Thank How are you, Janet?

I'm wonderful. How are you guys?

I'm good.

Mayor, commissioners, I'm Janet Gualtieri. I'm chair of the Education Advisory Board, and I'm here to present a report from our board. At our last meeting on October 16, the Assistant Fire Chief, Michael Owens, made a presentation to the EAB presenting the need for a facility to house the public safety training center. And as a result of his presentation, a motion was made at the meeting to recommend that the commission support a partnership between the city and Broward County School District to find a location for the public safety training facility. As part of that discussion, all parties considered the impact it would have on current students and families as well as the broader communities around the campus.

In a voice vote, the motion passed unanimously. I thank you for your attention and support, and assistant fire chief Michael Owens is here to answer any questions that you may have about the program.

Okay. And where is this exactly? Did you say the facility? Is there a specific

We place did

not ask for a specific facility. We left it open to, the many empty facilities that are going to take place, with the new reevaluation of the schools.

Okay. And how many square feet do you think such a training facility would, require?

So

we right now, the school board has offered us a Segal School at 424 SW 28th Street, just off of 84, just off of State Road 84. It would be a shared campus with Wynn Rogers there as well. As far as what our needs would be, that is that facility, all the buildings that it encompasses is somewhere in the neighborhood of, I think, 20 high 28,000 square feet, something like that. But a lot of that is portable buildings and things that it's not all one huge facility. It's several different buildings.

Does that work for us?

Sir. We'll What make it

is what about the building next to, fire station? What is it, Commissioner Glassman, the one in Poinsettia Heights, that building that's next to the fire station? What's the fire station in Poinsettia Heights?

Do you remember? Station 29, you mean?

Is it Station 29? The training facility that was built there years ago for the fire department?

We just abandoned that, Mayor. The fire union gave that back to us. The cost of rehabilitation was proving to be excessive. There was leaks. There were air conditioning problems. They had brought in an architect to look at it effective. I believe it was the original architect of the building was looking to do it and they eventually all just threw their hands up. Current Fire Union President brought it back to us, I want to say two months ago, and we canceled the they gave it back to us.

All right. So I don't know what how cost effective it is we don't have any numbers yet, right, with the school board?

That's correct. We haven't gotten into what the cost is going to be or what that partnership would look like.

Is this something that the police department is eager to investigate?

Yes. Very eager. We are definitely in need of some sort of facility, some sort of training facility, especially offices and classroom space along with, space to to build training props.

And and there, it would service both the police department as well as the fire department.

Okay. So well, the thing is, obviously, there's going to be build out costs. So weighing that against the rehabilitation costs of the Station twenty nine training facility, I just want to make sure that we're saving money and ensuring greater efficiencies that we don't otherwise have. Do we have a training facility now?

Let me step in here real quick.

So Yes. Chief.

Mayor, vice mayor, commissioner, Steven Goulden, your fire chief. Good afternoon. So I, I just wanted to bring to the attention that, first of all, thank both of you for your outstanding work in bringing this project forward and meeting with the school board to get to this point. Through our accreditations on both police and fire over the years, one of the outstanding things that has routinely been identified is our lack of a facility to adequately train our personnel. With over four seventy firefighters and over 700 police officers, one of the key components that we're missing is a facility that we're able to do not only didactic training, but also tactile training, getting them out, getting them in the vehicles, driving around a burn building, things of that nature.

For many of years, we've used areas that we've been able to squeeze it in. Currently, we have a training facility that's located out in the Wellfields, and it's made out of shipping containers that's utilized just in in a back corner back there. As the new treatment plant comes on online and and as various parts of the city, we're we're looking for that that joint relationship where we could put police and fire together, teach classes not only to our firefighters but also to the community and also get students in the community interested in in possibly a career in public safety. There's also the opportunity to join in with some of our marine partners that are out there and to do shipboard fire training. So we've identified a lot of opportunities that are there, and just lacking the one piece of that is the classroom space and the facility to do that in.

As Broward County Schools is looking at surplusing some of their locations, this would provide us the opportunity to move into a school that already has a facility assessment with it. We already know exactly what we're getting into and what the cost would be associated with it. Right now, the school board has identified what property that they may be interested in, and it would now be up to take it to the next level to see what exactly that cost would look like. So we're excited to potentially move forward with that.

Okay. Anyone have any questions?

Meyer, I think this is great. Also and chief, don't know if this changes based on our last conversation, but a facility like this, we could also possibly use as a revenue stream to other agencies that are interested in training. Is that still could that work here as well?

So most definitely. As briefly mentioned there, we've been in contact with some of the marine training facilities in the area to do shipboard firefighting classes, which are required on an annual basis. There's also the opportunity for classes like CPR, hands only CPR, stop the bleed classes, things like that that I feel we'd really be able to elevate what we're offering to our community. Great. Thanks. Thank you.

Chief,

you said that this was one of the, identified items through accreditation that we do not have currently as law enforcement. So this would be I'm hearing this as a benefit if we were able to identify a location for our training where it's spelled out. There's no it's not like we're using space that's not connected with, a facility all in one place. Okay.

Yes, ma'am. You you're correct. So this would combine both police and fire into one centralized training location and allow us the opportunity to utilize those resources. Chief Schultz, I can have

him come up and talk

about what they're currently utilizing for training. We're currently using the emergency operations center as well as mentioned that we use Connex shipping containers that have been put together, and we have those out at the well field currently. So this would allow us to move all of that into one centralized location. Our offices for training are currently out of the FXE Building. So all of our training officers that are in that building would all be brought into the centralized location.

And just to clarify, this would not hinder our status when it comes to accreditation, but it's a note that we receive when we're going through the process. So it's something that could be helpful and advantageous, but it would not limit us from continuing to be accredited. Absolutely.

So I thought that the new police station was going to have a training facility. Why would the police department be partnering with you in this endeavor?

Afternoon, Mayor and Commission. Question, Bill Short, Chief of Police. Very good question. Yes, we have training portions of the new building, primarily classrooms, and the largest addition will be our firearms range. But we still have needs for emergency vehicle driving training, which we currently have to rent the track at Broward County College Community College, I'm sorry, College.

And we also have some field force training, some quick response training. We need large response, large areas, large open fields for that. So there's a lot of outdoor training that we won't have the facilities at the station to do. It takes expansive area. And then also indoor training during inclement weather, the ability to put those trainings underneath a large roof would be extremely helpful for us as we annually train and sometimes monthly train these officers.

Okay. All right. Any questions of the Chief? Either Chief? Neither Chief.

Okay.

Thank you so much. I appreciate it. So what are next steps forward then, city manager?

We would continue conversations with the school board. And recently, I had a conversation with the superintendent along these lines as well as with other partnerships that we have in the city. So we just wanna make sure that we have informed the commission, and I think we've briefed all of you on this potential opportunity. At first, it was the Pine Ridge location, but it has since transitioned to the Seagull location, and that's where the school board is most amenable to this partnership. So we will come back to the commission with additional details, particularly should there be a fiscal impact to the city.

Okay. Very good. All right. Thank you. And thank you, Janet. Where are you, David? Thank you so much. And thank you for all your work on the Education Advisory Board. We appreciate it. Next comes up Business One Prospect Lake Clean Water Center update. Who will be talking about that?

Thank you, Mayor, Vice Mayor, City Commission. Albert Carbone, the Utility Service Director. I'm just here to introduce Joe Petrone, one of the managers of the Prospect Lake water treatment plan.

And let me jump in and say welcome back, Albert.

Thank you, Albert.

It's only been twenty years, but that's okay. No one's counting.

That's how long I've known Albert.

Afternoon, everyone. Glad to be back. Last time I was here was about June to give an update. So I'm glad to be back to give another update. Lots have happened in the last five months as we head into the next phase of the project. So this update is a brief update. Really, some good pictures. We fly a drone every week, so lots of pictures for me to choose from when I wanted to share. So I wanted to share some pictures that, I can kind of show kind of where the water is coming in. So this picture is a great picture.

This is essentially where the water comes in from the wellfield. That very large, 54 inches pipe that you see there, is where the water comes in from the wellfield before we begin to treat it. So the picture the building to the right is the Admin Building. It's nearing completion, and getting ready for habitation soon, from the team. The big building right in front is the Nanofiltration Building.

So up to now, you've been seeing the nano membranes themselves, the the actual vessels, that were uncovered. So now we put the building on top. And so this is the Cat 5 Building that will protect, the the filter, membrane vessels from any potential weather in the future. This is the great site from, great picture from up above. You could see the site really starting to come together.

All of the major equipment is on-site already, and we're really starting to enter, the next phase, which is, connecting everything together. So I this is just another great picture from from afar of the site. This next picture, this is kind of where I wanted to to share The the even though all the major equipment's on-site, the the very detailed work is, beginning to start, which is basically connecting all of the equipment together. So this is a a great aerial photo from above of the pretreatment filters, but all of that has to get connected with piping, above ground, piping. So that's what where where a lot of the work begins to to take place now.

Upcoming activities because of this, the on-site, craft worker has risen to about 200 workers on-site. So we're essentially at our peak in construction as we begin to put everything together, once everything has arrived. Just a quick update on the second injection well because the first injection well is completed. The second injection well will be completed in December. So come January, we'll be we'll have two fully functioning injection wells, ready for full commission.

Like I said earlier, the upcoming Administration Building is near completion. There's already furniture in there. We're working on a temporary, CO, for the building so we can start working the control rooms in there, and that's where we'll start commissioning activities from there when it's ready. The next major phase, which is really what I wanted to bring to light, is the start up and commissioning. Our goal, the big milestone is this month, we will be introducing raw water from the wellfield into the facility for the first time as we begin to flush the facility through and begin to start testing system by system, systematically throughout, the entire site over the next, seven to eight months.

Great news. The first set of, city employees set to arrive in January 2026. There'll be 10 of them. Six have already been, named, and four are on the are actually, working through interviews to be hired by the city. So that's great news there. The next set after that comes in May. So it'll be 10 in in in January, another 10 in May and so forth. Just the last two points I wanted to to show the picture on the bottom right is is our is our OCCT pilot. That the full pilot is gonna start in January 2026. What you see there is is we're essentially created a small miniaturized distribution system for City of Fort Lauderdale.

And what we're doing is we're we're conditioning new pipes to mimic the the pipes that are in the distribution system now so we can analyze how the new water from the new facility will impact those those pipes. We're doing that on behalf of the city, and the city will be the beneficiary of all of that reporting. The last step is the PFAS pilot. That arrives, later on this month, and that pilot will full fully begin to operate in December 2025. And, of course, this is the pilot that's gonna understand and analyze how this new facility will handle the PFAS coming from the well to to make sure that we are ready for 2031.

Well, we'll be ready before 2031. Right?

Yes. Yes, Mayor. Any questions?

I have a couple of questions, but go ahead, Ben.

Sure. Thanks, Mayor. D. Wayne thank you, Joe, for your work on this. Dwane, how are you doing on some of the items we are working on, the platting issue and so forth progression?

We're moving along really well. We've met with counsel, worked down a number of the issues. We have one issue probably outstanding that we're going to work through with them.

Okay. Is that still a cost of the

Yes. Okay.

Great. Joe, remind me, maybe you mentioned this, I'm just not seeing it, the coming online fully? September 2026. Great. Okay. Anything hindering?

Absolutely not. We are on time, on schedule.

Great. And give us, again, just for folks who maybe haven't been paying attention, just again, bottom line, millions of gallons per day. Just give us what

this It's, is going to be of course, a state of the art 50,000,000 gallon per day facility, that will provide, the residents of Fort Lauderdale and its surrounding communities, that the current utility serves now. So it really is, state of the art, using the latest and greatest technology.

Great. Thanks, Mayor.

Are the enabling works in place yet?

Yes. We are working through, so the biggest one, the one that everyone kind of, looks to is the 48 inches pipe connecting this facility to the existing distribution system, and that is complete. The city has done a great job managing that with its partner, Mancini and Sons, to execute that. That's, the reports that I'm getting and the drawings that I've received indicated it's complete. So that's a major enabling works. Without that, obviously, we can't get the water to the residents, and that's complete.

That's why I'm asking the questions. Okay.

All

right. Anyone else have any questions? There being none, well, you so much. Keep up the good work.

Thank Yes, sir. Moving on to

the Fort Lauderdale Police Department headquarters update, Phase two and construction status. Who will be talking to that?

Anthony Fajardo, development services director.

Good afternoon. Mayors step out. Good afternoon, vice mayor and commission. Anthony Fajardo, development services director. Just wanted to give you a brief update on the police department headquarters. I didn't put together a PowerPoint presentation based on the feedback I received from the last meeting, But just to let you know, what's in the CAM is still accurate. The project overall is 90% complete. Right now, we are putting in furniture in the building. They're installing the final finishes on they're all installed on Floors 3 And 2, I believe, and one is still under construction. There's a little bit of finishing work that's being done in the phase one area.

All of the Phase one remediation design and implementation work is complete. So Phase one is officially no more work has to be done in that other than closing it out through the end of the process. Phase two, the only things that we have left over are regarding the lateral load issue. This is the testing that's going to the outside engineering firm NV5. We're waiting to hear from NV5 on the response on building the model.

The, our outside engineer firm, WJE, has provided feedback on how they would like to see the model constructed. There are multiple models that will be constructed and put under the pressure test to make sure that those connection points that are designed by TT can meet the load requirements for a Category five hurricane rated building. Just to let you know, I also did do a presentation to the ITF. I think that was in August, and I gave a tour to Mr. Zeltman and Mr.

Lebry of the police department headquarters so that they could see the construction work firsthand and report that back to them. Other than that, I don't really have any more updates. We are staying in close contact with AECOM regarding the, proposed amendments to the contract. I did speak to Tim Blair with AECOM this morning. He is, him and his counsel are trying to work with Rhonda still on getting the finer points of that. He asked for some additional information of me this morning, so I'm going try and get that over to him regarding details of our contracts with WJE and LYE so they can see all the cost breakdowns and how that worked. So I'll get that to them probably later this week. Other than that, I don't really have much more of an update. Is there any questions or anything that I can answer?

Any questions of Mr. Fajardo? Yes. Mayor, if I could Go ahead.

Anthony, again, just want to just summarize a high level. What are we working towards in terms of what AECOM is going to be responsible for financially? So

our request is that they are responsible for 100% of the deflection in Phase 1100% of any of the results of Phase two. So that's the probably the negotiations that's happening between legal counsel. I've not been a party to those discussions, so I would probably rely on Rhonda to give you more details about where they are in those conversations, but that's been our expectation all along. We have that 2% notation in the contract, so we would like the deflection issue and the Phase two issues to be taken out of that, and then we apply the 2% to everything else.

Yes. Great. Excellent. And then future monitoring, where are we in that? Because we had talked about the, AECOM providing the cost for that as well.

Yes, they're already doing that. That monitoring has started. We've gotten the first two official, so we had our baseline, and then we had another measurement, and there's been no variance in those in what the model sorry, what the monitoring is showing in terms of any movement.

Great. And we had talked about a time certain to continue that monitoring being five, ten years. What's the latest discussion on that?

They've agreed to that. So they agreed to do it, I believe, for fifteen. I have to go back and look. I might be getting that wrong. But they've agreed to what we requested.

Great. Okay. So city manager, is that this is exactly where I think we need to be to remedy what happened. Is that your sense?

I think we're on track. It remains to be seen if we'll get to where we exactly want to be, but I think we're on track.

Okay. All right. Yes. I think

the biggest takeaway from the Phase two for the testing, we're very hopeful that it's going to give us results that are positive. If it does, we can stay on track to move into the building as we had always discussed with this issue manifesting itself. So that will be towards the end of this year, the beginning of next year, with the entire project finished sometime in June 2026.

So when is move in date?

Right now, it's looking like it's going to be probably in February.

February 2026?

Yes. Okay.

All

right. I've been sharing spring twenty twenty six.

I always have to put a year to that because I've learned from previous mistakes by assuming that it's a certain year, it isn't always a certain year. Okay. Thank you so much, Anthony.

You're welcome.

Thank you, Anthony. Okay.

Is Joseph Padron here?

Okay.

All right. Moving on to Business three, we have, the International Swimming Hall of Fame projects update. And before we conclude, there will be two people who have signed up to speak, Mary Peloquin and Carla Albano. Susan Grant? Yes.

Good afternoon, mayor, vice mayor, city commission. Susan Grant with the city manager's office. Today, we're gonna have speakers from Hall of Fame Partners and also PFM who we've contracted with to do a financial analysis of some updated numbers. But before they come up, I wanted to just provide a little update or a background for so everyone's on the same page. If you remember, the project was approved in September 2023.

And the way the project is structured is that the city leases the property, at the the Swimming Hall Of Fame site to hall of fame partners. Hall of fame partners would construct improvements in phases and that those improvements would be leased back to the city who would sublease that to tenants. The revenues from those tenants as well as other revenue sources would be are designed to offset the master lease payment that we would have to make to, Hall of Fame Partners. As I mentioned, the project was designed to happen in phases, and we did close on phase one in October. Phase one, includes a seawall around the entire peninsula as well as the city's ocean rescue building.

And under that master lease, the city is obligated in this particular phase to about $2,800,000 a year to pay for those improvements. Future phases are subject to city approval, and some of those will be presented today by hall of fame partners. Given that they are proposing some changes in the financial, part of the contract, the city did reengage PFM to do an additional financial analysis. And if you remember, finance, PFM also did the analysis in August 2023, prior to the project being approved. So after Hall of Fame Partners, Mario Caprini and his team present, and PFM, we have Kevin Plesner, from PFM.

Staff will come back, and provide some additional observations and then look forward to the city commission's feedback, on next steps. So with that, I will welcome hall of fame partners to the dais. Thank you. And I'll see you in a at the end.

Mayor, Vice Mayor, Commission, city officials, new City Manager. It's good to be here. We're happy to be presenting the update of the project, so we have some visuals. But today, we really want to focus on the financial aspect of this. And just to set the tone, normally, a P3, the way most people understand them, is its government subsidizing what they need and usually the private sector benefits

a

lot. Our approach is complete opposite. Our approach is the government needs a facility. Let's use the private sector to pay for it and try to make the goal of making it a net zero for the city. That's been our goal from day one. I reiterate that because I'm going to walk you through all the steps of how we got this done today. So can we go to next slide? Oh, I have to do it? Sorry. All right.

We're going to talk today about the project background, the P3 project structure that we already have approved and signed off on closing Phase one, the evolution of the project, the project financials and then the Phase two closing next steps. This is the new look that we're proposing. As it was mentioned before, there are new pieces that we added to the puzzle here and part of which is creating shade, part of which is a new promenade, and we're going to go into details. This is the South Building, and now we are in Phase one under construction of this third phase of the project. The project structure, quickly.

Remember, as Susan has mentioned, the City of Fort Lauderdale, it involves Hall of Fame partners, all the companies mentioned here. Here are all the roles that each company plays, okay? This is how the financial structure is done. There's a ground lease. There's a master facilities lease and there are subleases all through Aishaf because there is a deed restriction, Aishof must be here.

So all the subtenants are of Aishof. So Aishof, in order to protect their five zero one(three) is keeping the museum under Aishof Inc. And all the nonmuseum operations that don't relate to the nonprofit are all created in their wholly owned subsidiary called Aishof Peninsula LLC. And all the subleases of every tenant go under there. These were the dates when of each occurrence.

So you have it all here documented. We've been at this quite a while. This is the project structure for the subleases and the dates. These are the subleases that are going to be happening. And what we're going to be proposing is still that 100% of the lease space revenue, so all the leases that are signed by the tenants all go to the city 100.

Originally, our agreement is signed and closed that $2,000,000 the next $2,000,000 of revenue goes to the city. And after that, the remaining gets split with Ayesha fifty-fifty. Because of the cost increases, we sat and negotiated with Susan that a more equitable approach and more favorable to the city would be to increase the cap to $4,750,000 that they would the city would get exclusive payment for before any splits happen after that. The construction update, I'm going to let our partners at Enso Phelps,

give that quick update.

Good afternoon, Mayor, Vice Mayor and Commission. I wanted to give you guys just really an update overall on the first phase of construction. That is inclusive of the new ocean rescue headquarters building, that the fire rescue team will be able to use for the lifeguards, as well as the seawall improvements. If you can go to the next slide. You can see here on the right photo, really some progress being made coming out of the ground and going vertical on the Ocean Rescue Building. We have completed the foundations. We have completed that first lift of the structure. And right now, we are preparing for our second level deck placement. I believe we are scheduled for that tomorrow. And then here shortly, you'll start to see that second vertical lift and the remainder of that floor, level going vertical on the Ocean Rescue Building.

Currently anticipating a completion, of these improvements by the June. So if you can go to the next slide, I'll give you a little bit of update on the seawall. For the seawall, we really try to coordinate with the public, as far as some of the impacts. I know the last time we met here at commission, there was some concern with, the spring break duration as well as just the public interface with this, and this is one thing that, we've spent a lot of time to kind of find the best solution overall. Now that the boat show has wrapped up and they're starting to demobilize, we are focused on trying to get going on those seawall improvements for this property.

The existing seawall is about 60 years old, so definitely due for some updates and some upgrades. So we'll be starting that here in the next couple of weeks. The goal is to wrap that up here in June as well. If you go back one more slide. I did want to just give a little bit of notice and mention to, the fact that we have pursued the fine grant for this improvement being the seawall. This is something that we've been working with the Florida Inland Navigation District on. It's really an effort of an application the city has done. So this is one thing that has gotten approved, for this particular grant for these improvements. On the phase two updates, we are really underway on the design. This is one component that we are in on DRC for.

I believe we are scheduled to do a planning and zoning board meeting this month, and it's, I think, at November 19. So we'll be going to that agenda meeting. And then I think the goal right now is to really go get an approval on that DRC in the December commission meeting. So that's currently our target. We've been working with DSD and the building department collectively on this. Things are going well. We're on track and then just starting to get ahead of some of the master building permit efforts. Coordination wise, we've been doing, what we call biweekly meetings with the aquatic staff, as well as the coaches on-site. This is just really allowing us to communicate what construction's going on, what impacts there are to the aquatic center and then for us to kind of stay in the loop on what events they've got taking place, and then just really the upcoming events that are in the area. You want to speak over here?

Go ahead.

From a community outreach perspective, we've done several meetings, not just with the aquatic staff, and the coaches, but also with the Venetian, the Central Beach Alliance, and some of the local residents. So we've been doing multiple meetings more on an as needed basis but just to keep everybody in the loop of what's changing on this development as well as some of the construction that's coming their way. All right. And then really just to break down phasing of this project. For phase one, as we've noted before, this is really the ocean rescue building that you can see located behind the dive tower as well as the improvements to the existing seawall.

So this work is underway. This is part of the phase one effort that we closed on last year. The second phase is really the focus of the new West Building, which will include an aquarium. It'll include parking decks. It'll include the Eischach Museum as well as some exhibit space in a rooftop restaurant and also the public promenade that will surround that building on the west end of the property. Here, you can kind of see the evolution of this design. A lot of this is based on input from the public with the overall height. You know, some of the views are concerned as well as just noise and lights. So we've made a lot of accommodations in the design to really incorporate some of the feedback that we've heard. And what you see on the far right is where we are at currently and what's been the latest submitted to DRC.

Elevation wise, you know, we started much higher, back in the day when we were doing some of the design and initial concepts. A lot of the programming has been kind of accommodated around this when the aquarium was added. And then since then, there's really just a lot public input to help really bring down that height and try to maintain as much of the views as we can while still providing the components that have been agreed upon by the agreement. And overall, as you can see, this is really just kind of laying out some of the stats of the height, square the footage. The far right column is really where we're currently at today on this proposed West Building.

So this is about 85 feet tall. This podium is at 65 feet, which is in accordance with the code. These are the components that we've mentioned are in there, and there's a total of 180 parking spots in the two decks. These are just some renderings, as Mario's going click through, that you can kind of see the look and feel of the overall West Building, trying to find some cohesiveness in the design as well as some of the existing improvements to help tie this all together. And this is really what that welcome entrance will be like to that West Building under the Port Of Cachere.

This will be located on the North Road. So, you know, there's been a lot of discussions as we've been moving from phase one to phase two on, well, what does the experience feel like showing up to the property and how does the vehicular experience feel like with the pedestrian, our goal is to try to separate that more from a life safety perspective. So that is part of the updated slides you'll see here shortly. Phase three is really some of the bigger updates that we're here to present on today as well as the remainder of the project. So phase three will be inclusive of the East Building, the dive grandstand, the dry land training, the teaching pool and the public promenade.

Inclusive of this is just because we're aware of it, in meeting with the aquatic staff on a regular basis. Know We how important some of these aquatic components are, so these are a priority for our design team right now. And as you can see here, what was initially contemplated on the East Building was really knocking down that existing East Building that was built back in the '80s. As we've been working with FTOT and some of the permitting agencies, we realized that, there's some land that would need to be dedicated, and therefore, there would be an opportunity to lose some of the leasable space. So now we're just reconceptualizing what that is and starting to find the most efficient use so that we can get the most revenue back to the city.

This is just some stats summarizing some of those changes. Overall, keeping the existing building, still have a good chunk of leasable space, and the goal is to really make this more of a retail and restaurant feel on that East Building as well as incorporating some aquatic improvements beneath it. This is a little bit of the East Building look and feel. If you're on the East Building and you're looking on the aquatic center towards the West Building, this would be that viewpoint here. And then this would be part of that terrace on that East Building looking across the promenade towards the ocean on the opposite direction.

This is part of the improvements for the aquatic center that we're working on incorporating being the teaching pool, which is important to the aquatic center as it is to Eyeshaft for the Every Child Assortment program. And then some of the dry land training are some of the components we're starting to evaluate as well and how to work that into these improvements. The grandstands is a bigger part of what the aquatic center does not have today for the dive pool. So these are some of conceptual ideas we're considering on the North Building as well as to the West. I'm trying to look at that from an aspect of entertainment but also competitive, because that is part of what is the need right now for the aquatic center dive program.

And this is really what the look and feel of that elevated promenade would be. So this is really to really put an elevated walkable surface above the North Parking Lot. As it stands today, there's a lot of folks that tend to walk in there by nature. Everybody goes the easiest route, but really trying to separate that from a life safety perspective to make it compatible for the overall property and the different uses. This is really just a west view.

If you're on that elevated promenade, there will be some kiosk up there, to allow for some food and beverage as well as some retail. And these are just some additional photos to kind of give you a feel of what we're pushing for in this design. You can keep going. And so our goal is to really tie this all together so that it is easy to get through. We've considered some way finding and just really easy access for the public to these improvements and these properties for all to use.

This is really our connection from the West Building to some of the improvements we're proposing with Phase three really being that elevated promenade. And then the last phase being phase four, is really to capture the public water dock, which will have access for public vessels for pickup and drop off as well as the water taxi dock as well as some of the shading that we've started to discuss with the aquatic team and staff that's going be needed just because there's lots of events that take place on this property. There's about 1,500 seats on that stand, and they could definitely use some shade here in Florida. And these are just some visuals of what we're starting to anticipate and design for the public water dock as well as for the shading aspect of the grandstands.

Can you back Go

ahead.

Is that covering sun deflective or just decorative?

Sun deflective.

So what is the material that you're using to deflect the sun?

So there's multiple options that we're going through right now with several manufacturers. I think the goal is to try to make sure we're, one, not affecting sports lighting that's currently on-site, but we want to make sure that it's reflecting the sun as well because as it stands today, a lot of that sun direction is more on the South. So we've got a little bit of a challenge on how we go capture that to protect the shading on those seeds.

Okay.

Still in design. This is some early conceptual stuff, so we're working through Totally some of

understand. Okay.

Next slide. So I'm going let Mario kind of shift gears a little bit to talk through some of the financials that help support these improvements. There has been a little bit of shift, I'm going to let us Claire, let him have us talk through that now. Thanks, Michelle.

All right. So interesting before I get into the financials. So the economic impact of this project, and this was prepared by Business Flair. This is the summary of a report, and we are going to provide a full report to the commission. Dollars $394,000,000 economic impact, 3,280 jobs for construction, three nineteen permanent jobs, reoccurring yearly $30,200,000 of economic impact, property tax revenue about $34,000,000 sales tax revenue about $77,000,000 that's over a thirty year period and Broward County sales tax about 13,000,000 So this sets the tone of why this project is important and why we structured it the way we did.

And now I'm going to go a little bit back in time. If you look at the original column of August 2023 with no phasing, we were going to do one big project. And the reason we changed that multiple folds, but one was in order to get all the plans that take forever to get all approved at one time to be able to start, it will probably take three years if you put them all back to back. So we figured we can break it down by piece and just keep the same overall project and show the budget broken down by piece to make sure that overall, we're still in the ballpark. So when we were selected, we were at 190,000,000 When we closed Phase one, after we showed and demonstrated the actual cost of construction increases and all those other things, then we broke it down into Phase zero and one was the closing, was $42,000,000 Phase two, which is the Phase two building that Michel has shown you, is 97,000,000 And then the Phase three, which is the East Building and the Promenade is $35,000,000 And the design costs and core TI for all the tenant improvements because we're not going to start the tenant improvements at the beginning is $41,000,000 So the total that was projected was $217,000,000 a year ago.

Today, are at $218,000,000 So that's really the difference between then and now. So Mario, it's not to interrupt you, but it seems

a little difficult for me to digest how a much smaller building is costing the same amount of money. So would you go into that, please?

Yes. I'm going to go to this slide here. So we have documented 36% of construction cost increase up to 2022, which is when the city wanted a justification for the cost increase. We all know from 2022 on, the construction cost per square foot did go up. Right. But you're if you go to the previous slide,

that, we're talking October 2024, which is two years later, only a year ago, you're projecting $97,000,000 on Phase two, and now it's jumped up to $144,000,000 which for a much smaller building. And it's clearly not that much of a jump in construction costs and labor.

So if you look Sorry, at the Mayor.

If you could explain that.

Yes, of course. So the efficiency of the original building was about 25%. So we build a lot of square footage for very little income stream coming in because at the time, that's the way it was designed. As we were challenged with cost increases and all that, we decided to redesign the building based on community output to lower it, but we increased the leasable square footage to reflect what it is today. So that's how we went from 97 to 144. So the size of the building is different. Do you guys want to explain? Yes.

But the size of the building shrunk significantly.

Yes. But the size how it shrink the leasable square

and cost So

Hensel Phelps. So there's there's a a little little bit bit of of a a combination, combination, there. Mayor, When when you look at the construction cost and then also the TI. Those are the

What's TI? Tenant improvement. The tenant improvement costs. Tenant improvements. Okay.

And again, remember, the overall structure of this is to get the waterfall effect is the incentive of the private sector on those leases.

What can you explain to the public what the waterfall effect is?

Yes. So some of the revenues that come in, we give 100% of those revenues, the first batch, to the city. Then the next batch for the new proposed waterfall is 4,700,000 that goes exclusively to the city. And then the next waterfall after that, it gets split between the International Swimming Hall of Fame and the city.

You're talking about overrides above and beyond the lease payment? Is that what waterfall means?

It's all the revenue streams coming in and how they get distributed out to there.

Right. But I mean the city gets all the lease payments, correct?

Yes.

Right. But the profit override, is that split with the Swimming Hall of Fame and the city?

The first 4.75% proposed today is exclusively to the city. And after that, after you get all the leases plus the 4.7%, then it's split fifty-fifty with the International Swimming Hall of Fame.

But it's still okay. But I'm just I'm not understanding how a building we're just talking about before we even open the door, it's 104 it's 50% more, another $50,000,000

Mayor, I think you're looking at it the wrong way with all due respect. I'm sure I'm looking

at it the wrong way, so help me out here.

Yes. So you got to look. We're breaking it down. So we're doing certain parts of the building sooner, certain parts later. You got to look at the whole bottom line. It's $217,000,000 versus NOK $218,000,000. So this is just how we allocated the cost of the different portions of the project. So example, in Phase two, we had a lot of construction cost was originally for the teaching pool and the dry land that was on the 2nd Floor and a whole bunch of things. So because of the design, we updated our cost. At the bottom line, at the end of the day, you add all of the different phases.

We broke them down so that somebody can track how we break down the phases. But at the end, you got to add them all up. There's no making up numbers here. They all add up to $218,000,000

I know. It's onefive billion dollars that we are being asked to guarantee, but I just want to get back to some really basic rudiments, Mario. It's a smaller building, smaller footprint, smaller construction, yet it costs more it costs the same amount

of money. And Mayor, let me just can I jump in just to make sure I'm tracking what you're saying? Because I think I'm understanding what you're saying. So but just so question, Mario, is where I see the column that says Phase one closing and then current proposed, is there a square footage differential between those two?

Yes. Don't have them here,

but Okay. What is that about? Don't have them here. Okay. But there's some delta.

So all of the square footages, there's about 10 tabs of Excel spreadsheets that summarize to this one page. We have provided that to Susan and her team, and we have provided that to PFM. And they validated that these costs were reasonable, in line and that we are overall in the same ballpark. Anything I would mention is Susan didn't bring up to my attention that there was $49,000,000 of tenant improvements that she thought that we could finance on our own. Well, apart from day one, ever since we started this, the entire leasing program was based on the landlord providing the tenant build out money up to a certain point and then the tenants paying additional rent.

And that's all reflected inside of every lease that's signed or every LOI. And inside these leases, it also says that past a certain point of sales point above and beyond their base rent that they're obligated to pay every month, they have to also do revenue share with the city, which is part of your income stream. That in

addition to the amortization of the tenant improvements, this shared revenue? First is lease, then there's shared revenue. And is that including the amortization payment every month for the tenant improvements? So is Phase one closing $86,000,000 does that not include tenant improvements?

No. The only tenant improvements that we have there in Phase one is Ocean Rescue. So we're giving you a

full turnkey for Ocean Rescue, five So thousand square

there's $40,000,000 of tenant improvements?

No. We have to design in Phase one. And when we explained it, we explained that part of closing Phase one is we had to prepare because this is one big project that was originally supposed to be designed as one project to close all at one time. So we closed Phase one when the drawings were fully completed. In that budget, there's an amount of money to design all of the building of Phase two. And in Phase three, there's going be an amount of money to design the building of Phase three and four. So all of the each phase has a predevelopment portion of it, and we pay for the tenant improve the design of those buildings.

Ben, I didn't

mean to interrupt you. Go ahead.

Yes. No. I mean so I'm looking at PFM's analysis. And if I'm seeing this right, and Susan, maybe I'm looking at this wrong, but I'm seeing additional tenant improvements, 36,471,000. So maybe that's what you're maybe that's what the Mayor is talking about. Is that delta $36,000,000 hold on. Mayor, let me just jump in. Mayor, if I'm understanding you right, but here's what I'm hearing, Mayor, is there's a square footage difference between phase one and the current proposed. Correct. Right? And significant Significant square footage, and it sounds like we don't know what that square footage difference is.

But if just looking at a picture Okay.

Well, I just asked, and you said you didn't know.

No. I don't have it by heart.

Right. We don't know what it is.

The the report Okay. To your team. Okay. But it's We don't has all

these We don't Okay. We don't know exactly what it is. No. But it's significant. And so if I'm hearing you right, Mary, you're saying why just go to the summation. You're saying why is $217,000,000 so close to $218,000,000 when there's a delta in square footage? Is that what I'm saying you're Okay.

But a lot

of those costs reallocated in phases three and four.

No, no.

I'm looking at the summary. I'm looking at the bottom. That's why it's still in the Right. Right

Construction, he just said, went up 36%. Interest rate went up. There's a lot, but in one one year

year, it went up. Yes.

So just on the hard cost, and maybe I think the PFM presentation will show you some of those deltas. When we look at just Phase one, keep in mind that's just ocean rescue and the seawall. So there's not necessarily square footage

We're not change

on that one.

We're not questioning that. Oh, so looking at we're looking at The number two. Yes. Phase two.

And one of the bigger deltas on that is the tenant improvement. So when we were there in August 2023, that number was about 8,000,000. That's one of the bigger ones. And, again, I think you'll see that as as far as deltas go, and you'll see that on the PFM presentation.

Right. That's one from $8,000,000 to $36,000,000

Yes. That was one of the bigger deltas and not necessarily So tied to square

why are we paying for tenant improvements?

You're not. So that

yes, go ahead. Well, the way it's designed, although, again, we can talk about if there are any ways to make changes to that, as Mario alluded to, that there's tenants, they amortize those improvements and it comes back as rent.

They amortize. Yes. What happens if they go out of business after one year?

Okay. Let's talk

about We're stuck.

So let me go back to the budgets, right? So each tenant is given an allocation for the base rent. Then after that, they pay additional rent for any improvements above and beyond that at a profit center for the city. So there's they're paying at least 1% more on the cost of money, to amortize that risk. So let's go back to what happens if an apocalypse the entire building is empty. First of all, is it possible? Yes. Is it likely? No. It's like saying the most prestigious, highest demand piece of real estate in Fort Lauderdale is going to be completely empty for some reason I can't even think of.

Well, tell you the reason because sometimes businesses don't always make it. And if you're talking about a restaurant, maybe it's not a destination restaurant and it's not going to be enough business. So with all the millions of dollars we're putting in for tenant improvement and we find out that it's not working, that's a very common experience that people have. I'm not talking about the aquarium. I think the aquarium is going be successful.

Well, that's a tenant.

That's a So

14,000,000 of those tenant improvements are for the aquarium.

It's a lot of fish.

Nothing of quality is cheap. So but let me finish. This is important and you're onto something here that we've addressed and we've considered the risk on it. So when you look at the area here and you say, okay, what if the tenants go out of business? So there are plenty of restaurant operator, as you well know, in Fort Lauderdale, but not all of them make it. So in our selection process, Mayor, what we did was we made a list of all the best restaurant operators and then we went way deeper. We looked at their history. So our food and beverage operator, which is supposedly the highest risk deal on any real estate, right, is usually the restaurant. They've been in business for thirty years. They have locations in three different states.

They've been in the same building renting in Manhattan, for thirty twenty eight of those thirty years. They went through recessions. They went through COVID, and we all know COVID shut down New York completely. They never defaulted on payments. They never didn't pursue their deals and they never not honor their deals. That was a big factor why we went in there. And then to add another layer protection, I've asked if I could be a minority investor. Why did I want to be a minority investor in these deals? Very simply, to have a look on the inside. Most real estate deals are reactive. The tenant stops paying rent, then they get an eviction notice, then the legal battle starts. The way we have it

in our

leases, they have minimum criteria to live up to. And if they don't, there's no legal battle. We step in and bring in the next operator, going do that. To we're can do to help mitigate do the risk, which is probably one of the highest factors of concern from the commission, rightfully so. But I'm telling you, those are all tools that we put in place to help mitigate those risks.

So are all these partners willing to sign personally should there be a default on

the They all sign corporately and their corporations are 30 years old with deep pockets. Have financial So how do sign personally? Well, didn't ask that. I don't think that's appropriate. You don't think it's appropriate? No. Let me tell

you something. I've written about 100 commercial leases in my practice over the years, and I get a personal guarantee on every single lease. So to say it's not appropriate, corporations find ways to file bankruptcy and avoid, those kinds of obligations every day of the week.

Mayor, you would have to agree that it depends on the financial strength of the corporation.

They change all the time.

So you think that Bill Gates signs personally on the leases of the building?

Is his company going to be a tenant here? No. No. So don't use him as an example.

But if

he was

Hold on. Trump signed personal guarantees. Look where that got him.

My point is well taken. Thank you.

So anyways, I believe that we did a great job mitigating the risk. We're bringing now a net positive result. So when you did the parking garage on Las Olas, you had no tenants. You knew that by doing so, it would provoke economic impact. You knew that it was going to bring additional developments, which it did. You have the new mega yacht center. You have the restaurants. And we all know through the history of Fort Lauderdale, there's never been anywhere on these restaurants or bars or anything like that or aquarium that's been 100% vacant forever, right? So this is the highest demand place in a place where you get 15,000,000 visitors a year. I think the risk But here's

my concern, Mario, and you and I talked about this yesterday, is the city, the master lease payment requires $13,600,000 to be paid to Aischoff every year.

Not to Aischoff, to the lender.

To the lender? Yes.

To who, Susan?

Be paid to hall

of fame.

To be paid to hall of fame every year regardless of Correct. Right? So that's a huge Mayor, here's my concern. This is just a huge risk to the city. Whether it's fully leased, not fully leased, regardless, we are on the hook for $13,000,000 a year. And that's where this is different in my view than some of our other projects. Mario, you mentioned the Marina. I'm just not familiar with us being on the hook for $13,000,000 a year. So if and I'm great with the revenue. If that's how you feel and you feel very strong about, great, then let's have let's adjust that $13,000,000 to have a significant chunk of that based on revenue rather than just As non revenue

you know, loans we closed on Phase one. The loan is closed. If you wanted to change the terms of a loan, we would have to refinance and repay thirty years of debt of that Phase one closing. Don't think that's very

No, Phase two. We can look at Phase two.

Can look at Phase So if we look at Phase two, then we have to have the ability to put a first mortgage, and we'd have to have the ability to finance, these pieces. We've explored that with Susan. We discussed I'm pointing this way. I lost Susan

somewhere. Yes, she's right there.

She's right here. So we looked at that. In order to get financing, even if it's the private sector, you will know that they will require a first position on the property, which you cannot

give. Yes, that doesn't work. It's not constitutional in the state of Florida. You can't have a security interest on government property. But there are lenders that lend into the governmental sector without having a security interest on property. It's very common. Happens with schools all the time. They do certificates of participation. So there are ways to get there.

Yes. But this is part

of I'm sorry. I apologize for interrupting. Basically, it's just been it's based on a covenant to budget and appropriate. I mean there are other ways that we do this quite frequently.

And Vice Mayor, other ways we do what, just so

I'm tracking? Just talking about there are ways to do loans on property that don't have a pledge of an underlying security interest in the property.

Okay.

In fact, when we were just looking at One Stop, that was actually a question about the underlying financing, about how we're going to do that when they don't own the property underneath it. So that's getting financing on something where you don't own the property is not necessarily an impediment.

Great. And then Vice Mayor, this idea of some degree of more revenue sharing, does that is that possible from your view on a financial?

So and I had a very similar conversation with the folks today. When this project was proposed years ago, I was uncomfortable with the idea that the city was the guarantor of the debt. This is and I was never a big fan of that. One of the things that made me a little more comfortable with the project as a whole actually was the inclusion of the aquarium because I thought that's actually going to drive a tremendous amount of foot traffic to the peninsula. And it actually, I think, makes the Eischof Museum potentially a lot more viable than it has been in the past.

I think that combo ticket concept that they were talking about makes Eischof really a more attractive position. So I think it gives me a little bit more comfort that it's going to generate enough revenue to cover the debt service. But my comments to staff today, I'm sorry, to the team today, we're very similar with what you've all expressed that I'm not interested in going back and trying to renegotiate the deal that we already won't. Let me I wish we could, but that horse has left the bar. So I'm not trying to do that.

But I'm not comfortable with the idea that we put the city further at risk for more debt and shoulder more of that obligation. I said to the development team, the whole idea of a P3 is risk transfer. Private sector gets the reward and the private sector should take on the risk. I don't know where that number is. And I said, perhaps we need to be willing to forego some more of that revenue in order for them to be able to go out and finance that debt themselves. And they asked me candidly, they said, what does that number look like to you? And I said, I don't want to negotiate. We've got a great team. I'm happy to let Susan do that and wrestle that to the ground with them. And I think they can come up with that number.

But

at the end

of the day, and I shared this with Rich and I shared this with Mario, I'm just not comfortable putting that onus back on the taxpayers for another 30,000,000 plus of potential obligation over the lifetime of the agreement. Maybe there's some negotiated number in between, but certainly I don't think it should be the totality of that debt.

Yes. That's exactly how I feel. And again, you know this better than I do, but my concern is just the exposure of risk to the city. And I just feel like $13,000,000 a year is big significant exposure. Is that your am I tracking that right? Okay. And then on top of that, and Raquel, you and I touched on this just and is I just I'm interested in finding a better deal for both of us on this of how we can work. I know, and Mayor, you and Commissioner Glassman brought this up the other day of just the concerns about the aquatic center performance right now. You both shared you're very concerned about the Aquatic Center bringing individuals there and events, and I think this will help do that. So I think this is going be a positive.

But we're running a $2,000,000 deficit right now at the Aquatic Center, Raquel?

Mean we're It's less than that. Our

fiscal year 2025 actuals reflect a deficit of 2.167.

It was 2.1. Yes.

So I'm just that's my concern, Mayor or Vice Mayor.

Well, it's a tremendous concern. And the problem is the master lease payment went from a maximum of $11,000,000 to almost $14,000,000

And But also, Mayor, the improvements to the community went from $35,000,000 to $53,000,000

The improvements to the community? Yes.

So we're talking about adding shades and bleachers. If you wanted us to stay within the contract that we have, just remember where this started. We closed and at the pretty much at the closing of the approval from the commission, the condition was added, which was a great, great decision to add the aquarium. But because of the aquarium, we had to scrap all the plans and start over, right? So that costs time and delays And we're we're to to do that.

And

do do that. The numbers that we're presenting are today's current numbers. So we are trying to stay within that envelope. But one of the requests that was made to me was make sure that this is cash flow positive contrary to the first closing where the city exposure could have been minus $3,500,000 or $3,900,000 I'm doing this from memory.

Mary, the only thing I'll say to that is two things. I would never have supported that deal in its initial construction. And secondly, I would never have supported this deal without the inclusion of the aquarium because the only way this project makes sense to me is with the aquarium. That peninsula, with all due respect to Aischoff, nobody wants to look at Johnny Weissmuller's jockstrap anymore, okay? Point well taken. That day has come and gone.

Yes. You'd

be surprised.

So let's talk about

All right. Nobody under 60. Yes. No, and I'm trying to introduce some levity to the conversation, my point is very serious about that, that the only reason that I was reluctantly supportive of this project in the first place was because I think that the aquarium puts Fort Lauderdale on the map as a unique location in the South Florida market. That amenity at that location creates something different down here that I think will attract a huge number of families and give them something else other than the beach, right?

So I think it will drive foot traffic to that area. And I think really when you incorporate that into everything that's going on over there with the Bahia Mar and the Shirley and the Marina Village, I think all of this comes together in a very unique way. I think that's going to be just incredibly positive. So I think it's all great. It all works together. But without that component, I would never have supported this project in the first place. So hold on, if I may just finish. So any costs related to the redesign of that project to incorporate that is the only reason this got across the finish line in the first place.

Okay. So point well taken and I'm going to really dig into that point specifically because of the aquarium and Rich can testify here to that.

And by the way, if Rich could just bring more money back from Tallahassee, we can probably close that gap.

So let's talk about how creative our team is. So we're not looking at taking here, we're looking at always what we can contribute to help the project. We weren't asked to go get grants. We did that on our own. We worked it in concert with Susan and everybody else and said, we believe that we can go get this. And then the team came together and we did it. And we got the first $4,200,000 approved. And hopefully, the promenade is 50% eligible of the cost for that. But let's go back to the aquarium. The way we had it and we incorporated the aquarium, and I agree it was a great decision, But that took a redesign of the layout because the aquarium did not fit on the footprint of 10,000 feet that we had on the floor one of the original building.

It's 20,000 feet. So in order to do that and then you were told by the experts who run aquariums who've developed tons of aquariums that we're going to bring in a minimum of 300,000 people a year. That's a whole queuing, that's security. That's a whole bunch of other things. All that is part of making this project viable. And you know what? We did the study based on the city manager asking us, hey, I understand you have this vision about the promenade. Forget the promenade. How does it look without the promenade? I said, that's a very good point.

We did the renderings and we did the math without the promenade. We're going to be under the 11 cap and you're going to have a 5 point something million outlay to respect the contract as we have it today. We are going out of our way to make sure that we're looking after the best interest of the city and protecting you. So we will spend the time with the city manager, with Susan and everybody else to demonstrate that the $49,000,000 spent on tenant improvements that are quality people that have never failed in their businesses are the right people to do business with because they are subsidizing the $53,000,000 that we're providing for free to the community. So that stays with the community.

That's going to enable Laura to have nicer, better paying events to come to Flag. I have attended the TIER event. It was a great event, and I was excited. I was there. I was cheering on Matt's daughters who made the finals, and then we had to leave and come back. I'm telling you, I am listening to you. I understand you. We have looked at every possible angle. The least amount of risk for the city It's higher risk to be under the 11% cap, and we don't ask you for anything. We just continue with our project and just do the aquarium, the two floors of parking and the iShot Museum.

The cash flow will be very negative. We need these additional tenant improvements because they are the ones paying the rent. They're the ones paying off the mortgage. The last people you want to go touch or cut or upset is the tenants.

Right. But their monthly nut is pretty high for a new business.

They're not new businesses. They're established businesses that know what they're doing now.

They're established businesses in other locations. So Okay. And I'm looking at your the slide now, 0 point dollars based on my quick math, it's only like an 8% differential that it could swing either way. So it's just a small margin of profit that we're looking at if it's fully rented, fully operational and we're able to still get financial override from profits. Don't even know if they're

to If make a

they're losing money every month, still paying our base rent, we don't get that percent override. So there are all these factors that we, as people who are supposed to be responsible for the public purse, have to make sure that the risk to the public is zero.

Well, there's no such thing as zero risk, Amir.

Well, as close to it as possible. We're not in the business.

That's what

we're trying to.

We are not in the business of being in business.

No. We are the business of creating jobs, creating tax base, creating opportunities and improving the life of the community. I get it. I listen to you on your commission meetings, and I really appreciate you guys. I don't know how you do it day in and day out doing this stuff. I'm telling you Here we are. And we will listen to you. We will do a work session, and we will do it with no tenants, no tenant improvements. And we're just going to put what you've already approved in Phase one, and the numbers will speak for themselves, and then we'll see where that takes us. But I'm telling you, I already did that math, already did that analysis. It's not good.

Yes. I'm not in favor of that approach either. So I agree with you.

May I just say a few words?

Are you the district commissioner?

I am. If I may say

a few

words, it would

be great. Thank you. I appreciate it.

So first of all,

thank you for your work, all of you, the entire team on this. I've appreciated the work. I've appreciated the communication. Susan, thank you for that. PFM as well. So I agree with a lot of what I've heard today, but I'm not going to be as nervous as some of my colleagues on this. I feel very confident in the fact that you have these commitments, and correct me if I'm wrong, for almost all of the tenant space.

A percent.

A 100% of the tenant space. Yeah. That to me says right then and there what an amazing job you've done and how people are responding to have a location on this peninsula. As vice mayor said, this is a holistic approach on that beach area. We're doing amazing things in that stretch, from the reimagining of Bahia Mar, to every development along that way, and then this particular peninsula. So I wanted to address, first of all, the mayor's concern about the increased cost even though the square footage has decreased. I think a lot of that can easily be explained. If you look at all of the tenant improvements, the square footage and the uses, a lot of that have shifted to Phase three and four. So then when you look at Phase three and four, mayor, you see their incredible decrease there, which compensates Can for the incredible

we go back to that slide?

Can I just finish and then you can

Yes? Go back to

no, I just want to see the slide.

Okay. There you go. So that's the difference here. The difference is the fact that, again, tenant improvements, square footage uses have shifted to Phases III and IV that originally were in Phase two. So it makes sense. That's why you see those dramatic decreases on Phase three and four. And then the overall total is only about less than $1,000,000 correct? And that can easily be explained by increasing construction was

verified by PFM.

Yes. And I want to add something else. When this discussion started and we did come to a comprehensive agreement, a developer's agreement, we signed off on all of that. So all of those terms have been in place. But then after that, I want to just refresh everyone's memory. We heard a lot, a lot of communication from the swim community and the diving community claiming that for four years, they were unaware of what was going on. So we reopened the conversation. You guys went into a lot of meetings with all of these people, and all of that has resulted in a dramatic reimagining of this peninsula. That's not cheap. That doesn't come without a cost.

That is an incredible almost about face in readjusting to what you heard from the swim community and the dive community. That feedback was taken very seriously, and you've incorporated all of those changes. And you've done it in a way that I think not only makes the swim community and dive community more pleased with this project, and I'm hoping we'll hear some of that, but you've done it in a way that also adds things like that promenade, adds things like the other aesthetic improvements, adds things like the shade structure. We can't go back to the original because I think what we're looking at now is an incredibly good plan for this. Remember, this is also a site that has incredible site constraints, incredible constraints.

I think the way you've navigated those constraints really shows an increased efficiency. And I'm really very pleased. Susan sent us a list of the tenant mix. It's really good tenant mix. So I would say to my colleagues that I understand. I understand the cost that's in front of us. I understand the risk. Of course, there's risk. But again, as the Vice Mayor and others have said, that aquarium is a game changer for this site. And I do believe that we're going to be fine.

And I want my one last point. At the end of thirty years, who do you think owns all of this? The city of Fort Lauderdale owns all of this, all of these improvements, all of this investment. And not only that, but we're getting revenue along the way. Can you tell me of another p three where you get revenue along the way and you own everything at the very end? Does that happen typically in a P3? No.

And we have shown that real estate values go up about they double about every ten years. If you discount 25% in thirty years, it will need a renovation. The city is netting $400,000,000 of new value that didn't cost the city anything.

Correct.

So I don't know. Am I held to an impossible standard? I mean, has been the tone of this meeting of this project since day one, the theme song of Mission Impossible.

It's not a Mission We

have done the impossible here, honest

to God. We got Which the phase is the, East Building? Is it three or four? East Building 3. 3. So the renovation is still going to cost $25,000,000 And what is $4,000,000 again that will drop from $41,000,000 to $5,000,000 What's in 4,000,000

The dock and the shade structure over

the grand stamp. And that was $40,000,000 originally? Are you sure? They're not apples to apples, Mary. They're not apples to apples.

I had No.

Project in phase one, when we had 2024, the plans, if you put them side by side, they don't even look the same.

And a lot of the Phase four previously as of last year had included some of the tenant improvements. Now because that's part of Phase two, we're trying to keep that in line with applicable phases taking place. So it's really just more of phasing and the scheduling that had been recontemplated. So it's really a lot of that $34,000,000 you see in Phase four for the construction in TI had included some level of tenant improvements. That's now shifted back to Phase two. So there's been a little bit of a reallocation, but there's also an increase. And so I think when we shift gears and allow PFM to kind of go through their study, you'll kind of notice some of the offset of the revenue that's going to help compensate for that.

So it would have been helpful to us had some of that detail been explained because this is very, very your columns here are not matching apples to apples, and that's what's confusing to

us. Understood.

That's correct.

And it made it look completely different than what you've just explained to us today. So when you first see it raises the question of how we could again anticipate less square footage, but the same amount of money. It didn't make any sense.

Fair comment.

All right. Susan, tell us in the final analysis, what are you recommending to the city?

So, Mayor, I think it would be helpful to have PFM go through some of their presentation. You'll be able to see kind of the flow of that waterfall that we've been talking about as well as they ran several scenarios that that I think it'll be helpful to see that, and then I will come back up and talk to you about that. So

Okay. Do

is that alright for us to bring

up And I'd I'd to see too. Yeah. I'd like to see it too because mayor and my colleagues up here, I think one of the things that's important about this, when we talk about the revenue, there's some sensitivity analysis to this revenue projections. If the revenue targets are not met, then the city has to make up the shortfall. If we have a Goldilocks scenario and everything works out well, then we could actually make some money on this.

So it really depends on how successful this project is over the entire year thirty life of the project. So if we don't meet all of our targets over the lifetime of the project, we could be on the hook for writing a check. If the project is successful throughout its entire life, then we could actually make money. So I think that's the important thing to recognize. We might make money, we might lose money on this. We are truly a partner in this in that respect that we share a little bit of the upside and potentially a lot of the downside.

You just killed your argument.

But no, I think that's but I do think it's important when we talk about $14,000,000 that, that $14,000,000 is going to go primarily to debt service. It's not going to come to the revenue as general fund revenue or anything else. Primarily, most debt of that goes

service.

Well, most of it, again, and I think PFM will kind of expound on that, if you will. Thank

you. You.

Good afternoon. Mayor, Vice Mayor, Commission, appreciate the time. For the record, Kevin Plesler, PFM. In the interest of brevity, I'm going to just touch on a handful Could of

you tell us what PFM does?

Yes. Financial advisors is a municipal advisor to, cities and counties. So our main goal is ultimately providing municipal advice in terms of typically, you'll see some of our colleagues, Sergio, I'm sure you've seen Sergio, we do, we assist in bond structuring and financial advice for local government.

And on whose behalf are you serving as a consultant?

The cities, the local government. Okay.

Just want to straighten

that up.

That's correct. Okay. Please proceed. Sure.

So I think we've been focusing on one element here of costs. So this is a chart that we developed here. This is Slide five of our presentation that kind of breaks down the differences in terms of and we were really comparing from our analysis, we were looking at 2023 compared to 2025 because at the time of our study, we didn't have the 2024 close data. So from our analysis, we were kind of looking at an understanding what were the differences in costs from that period of time. So what we did is we did a quick analysis and looked at escalation and construction costs from basically 2022 to 'twenty three all the way to 'twenty five and looked at that delta.

And over that period of time, construction costs increased pretty dramatically. And then we compared it to their estimates here. You can see there's an increase of about 14.9. You can kind of see the breakdown of the various elements and changes as our best apples to apples as we kind of looked at them. And you're correct, Vice Mayor, that there is a change in square footage.

I think the rough numbers, there's approximately and it's because we don't we're not engineers on our part, but from just a total square footage, there's about 100,000 square feet, less But square feet, give or what we don't know is kind of where those dollars had to be allocated because at the time, you didn't have a raised promenade either in the first scenario, how much that cost was, etcetera. So we didn't have a breakdown of specific all the elements there, but ultimately just wanted to create a comparative here. So that's what we've done on this slide. And you can kind of

see the various deltas. It seems that

the most significant delta is the tenant improvement in That's the aquarium, correct. So there's $28,000,000 difference, and we're basically building the aquarium, and then they're financing the building of the aquarium, and they're going to pay us back through revenue generated.

Is that the That's kind the concept, correct. Okay. All right. And then one element that we wanted to touch on as well was looking at the current market, you can see kind of the real comparative numbers here is if you look at the information via CoStar looking at lease rates in the one mile radius, you'll see it's about $83 a square foot. The numbers that are being provided to us per Hall of Fame partners is about $85 so they're right in line with the market overall.

So there was comfort there that the retail lease numbers that were being provided. You can see there's post COVID, COVID, pre COVID, you see a pretty big volatility in the overall growth rates kind of bouncing around in the market, just as the market kind of came back into equilibrium. And it looks like we've kind of stabilized here over the last year and a half is kind of the annual growth rates have started to come down to something more normalized going forward. But we wanted to test those as well just to make sure that they were generally in line with the market that we were kind of looking at. So that was consistent as well.

And I think one other slide I wanted to touch on was our Slide 10 here, and this was kind of getting back to, as it was mentioned, transfer of risk, right, and understanding the various scenarios we ran. So you can see in the very first column, the 2023 numbers that were provided and looking at the total city revenue, lease payment, the delta, and then we have the various scenarios going forward. We have the new 2025 base case, which shows the increased Citi's preferred return and looking at how that math works and what the net would be assuming a master lease payment of around $13,600,000 And then we ran a series of scenarios trying to understand where is the risk in this assuming everything else kind of works. What happens if things don't work as planned because things aren't going to be perfect. And I wanted to see how that impacted the net revenue to the city given various scenarios.

And you can see in really the kind of the, I call it the purple scenario, the 25% reduction in occupancy. Occupancy is probably the biggest risk to the project, which is not a surprise because that's where a lot of your revenue is tied in your lease based revenue. And that's the revenue that goes directly to the city. The city preferred return really does insulate the city from any swings with revenue associated with the revenue share from your tenant partners and the other kind of peninsula revenue, which is usually split fifty-fifty. So that preferred return does insulate the city from those revenue streams being a little bit more volatile.

So that's why you don't see when you look at the very bottom line, those other scenarios aren't as impactful as it is on the occupancy side. So we wanted to kind of just touch through those to kind of give an idea of where the big risks are under the current structure.

Kevin, thanks. What's the remind me again what makes up the Citi preferred return, that 4.75%?

Yes. So from a revenue perspective, you've got your lease base revenue from your tenants, which is kind of that 8,000,000 And then the next sets of revenue are the revenue share that comes from the operating tenants, and then you have your other Peninsula revenue. So think of your dive shows, naming rights, docs, dock activation leases, and I don't have the whole list here. But that's kind of the other pot of $8,000,000 give or take, that's being shared, and the city gets the first $4.7 of that

$8,000,000

Great. Give or And

all of that is subject to fluctuation and risk and change. So it's not like that's a fixed

amount. No. And what you do have those and some of that is going to be naming rights and you'll get like signed contracts for naming rights to kind of lock numbers in. Other things are going to be dive shows that are going be subject to attendance and revenue and things like that and kiosks and etcetera. So really understanding a lot of it's going to be how many people are coming to the site and what's really activating the site and the operator being nimble to go what's working, what's not to continue to obviously drive revenue And into the

the base case is 100 occupancy? Is that right?

The base case has like yes, think it was like, I think 95 or yes, but it was a very high occupancy. It was really high. Yes. Assumed it was going to be fully tenanted.

And then okay. And which is again, that's very positive hopeful thinking, which hopefully it would be. But at least oftentimes initially, you don't get that. You don't sustain that 100%, 95%. And then 25% reduction in occupancy, that's saying another way to say that is 75% occupancy?

Correct. Correct. And you can kind of see what happens as a result that being, oh, wow, you're still making your master lease payment in the city's short 1,400,000.0 Right.

So now we're subsidizing that $1,300,000 Correct. Right.

Yes. So ideally, if you're at 15 percent 15 percent reduction in occupancy, you're probably doing breakeven ish.

You're kind

of there. So that's kind of really trying to understand where the risks are.

And it's still less than we're losing today without any of this.

Yes. But this is on top of that. Yes. This is on top of the loss that we're currently sustaining. This only has to do with the East And West buildings. This has nothing to do with the operation of the Aquatic Center.

Well, they are related, but that's okay. Didn't mean to interrupt. Go ahead.

Well, let me ask you this question. I mean, we're a lot of this is hinging on the success of the aquarium, right? And everyone is saying that the aquarium is going to be a great crowd attractor, right? And I think it will be, okay? And I'm very hopeful we'll get it. I'd love to see aquariums. If it's such an obvious if it's going to be such an obvious financial success, why are we underwriting the tenant build out?

I'd have to that one, I wouldn't be able

to Susan, find

do have any thoughts on that?

So this goes back to how the deal was originally structured and how the the project company was able to secure the financing. But but that's how that has always been So I'm

we're just guaranteeing the financing. Correct? Correct. So we are not borrowing the money?

Correct.

Okay. All right. All right. And the 25 percent reduction column, how many we don't really have that many tenants, do we? We have the aquarium, we have the restaurant.

I think, yes, if you look at the detailed pro form a, there's about seven or eight kind of lease based tenants, one being the aquarium, another being and you have your other restaurants and a handful of retailers. But yes, it's like a list of 50, it's

like So 25% reduction means like a significant 10% would be wrong.

Correct. A significant one or two, more likely more like two, which and now all those leases are actually signed and executed for those tenants. So you have those leases in hand later.

Which is great. I don't want to take away from that because they put a lot of work into getting that done even to the point of getting signed leases as opposed to LOIs.

Mayor, I just want to clarify, we

have two signed leases

and the balance are letters of intent.

We have two signed leases.

We have two signed leases. Yes.

And and executed letters of intent. But Mario, let's jump up.

But that also that also goes for it's not just those tenants, but it also we have LOIs. We have for the kiosks because we've added the kiosks now.

We also have

VIP suites that we've added now, again, plus the naming rights. So there are other leases and LOIs, not just what originally was intended.

As the city manager said, what we were provided was two signed leases that represent about 65% of that

Total lease what?

Of the lease based revenue, yes. The remaining were two LOIs, and one was for a portion of the West Building, the other was for the East and that represented the balance. In addition, we were provided leases or LOIs for pretty much all the kiosks that would be on the elevated promenade, two of the VIP suites and an LOI for $1,000,000 of naming rights. You know, the pro formas that are up there, have 2,000,000 of naming rights in there. So when you look at that fourth scenario where it says only a million in naming rights, that's what we took because, again, we had a million, an LOI for a million and their pro form a had 2.

So, that's why we selected that one. A couple observations, you know, the purpose of the sensitivity analysis, as Kevin said, was to find out where the biggest piece of the risk was, right? So you can see the biggest piece of the risk, the biggest fluctuation happens when we have changes maybe in occupancy and hopefully that's taken care of with leases. Naming rights, the remaining half of the revenue is from leases, the other half is from these other revenues. So year one, there's $2,800,000 of revenue share.

That's that first scenario because in the first year startup, we might not be hitting all the revenue share. So we wanted to show what that might look like. The other thing to keep in mind is these are not silos. They're not mutually exclusive. So you could have in a given year a combination of these and so you might see a bigger swing.

So just in closing, you had asked about our thoughts on that. Some of the LOIs, think we've mentioned to most of you, were for with organizations that might be affiliated with this either the swimming hall of fame or with the project company. But, and then I said the revenue mix, naming rights is $2,000,000 and the revenue share is 2,800,000.0 So those two items are the lion's share of that. Do we know who

the can you disclose who the naming right LOI is with?

It is AquaCal. And that is if you go to Sunbiz, the principals there are William Kent, Dereen Goldstein, Michael Dooley. Don, I'm sorry about if I'm messing your name up, Detwiler, Leslie Bordell and Robert Kulstad.

And is that for what's the dollar amount for that name?

That's $1,000,000 for five years. So $1,000,000 a year for five years.

Right. And what is AquaCal? It's pool stuff? Yes. Okay.

What's the duration of the two leases we have signed?

Those are thirty years, with three five year renewals.

And just for folks who might not be familiar, the difference between a lease and an LOI, what's the difference?

More of a binding commitment on a lease versus just an expression of interest is how that is.

It's a LOI. Yes. So Okay. And Susan, if you were, in your analysis, as you think about this and the there's always risk, there's always exposure. So ways to mitigate or lessen the risk of the city. What are ideas you would have to better insulate the city?

Mario had mentioned one that we had talked to them about carving out tenant improvements and maybe having Hall of Fame finance that and collect that associated rent. Again, that eliminates that exposure. You know, the opportunity to maybe renegotiate pieces, you know, from the post phase one, where there might be a little bit more of a revenue share. So if the city winds up in a negative position, maybe there is an ability for the project to pick up some of that you know, and then maybe make some changes in the project. So those are the things that come to mind. But if the commission, like I said, based on whatever feedback you give us, we will go back and work on whatever those are.

Okay. Thanks, Susan. Mean, Mayor, so that's my suggestion is that just I think there's more opportunity to sharpen the pencil. Susan and the Swimming Hall of Fame team get together, and they've heard their concerns and just work on this a little bit more.

All right.

Susan, how does that affect the original structure of what we've all agreed to already? In what way and what would be the next steps? I'm not saying I'm agreeing with any of this right now, but I'd like to know how it does affect the original structure and the agreement that we have both signed off on.

So the comprehensive agreement that was signed two years ago contemplated that we would do this project in phases. So and we would have closings. So we've closed on phase one, which are those public improvements, the seawall and the ocean rescue, and we are committed to the master lease payment associated with that. So but the comprehensive agreement talks about this happens in phases and that we get to agree on what that phase looks like and how much it costs and what the impact would be on the master lease payment. So we have an opportunity with each phase, to to have those discussions within the confines of the existing CA.

However, you know, we were talking about if we were just going straight ahead with this, we would be amending the CA as well, to increase the master lease payment and then also the city preferred revenue, that $2,000,000 to the $475,000,000 So we'd be going into the CA anyway to make changes.

What would be, when we signed off on the original structure and the original agreements, what was the contemplated net to the city in terms of what we would be responsible for for the lease payments?

So at that point, the cap was $11,000,000 but we were looking at a most likely scenario of 9.5. But under the 11,000,000, the cap, I think it was a negative negative 1.11 3,000,000. Thank you. A negative 1.1. And the scenarios that PFM ran at that point had everywhere from breakeven to a minus three point, I think it's five or six.

And that was in the original structure and the So original how different are we now from that?

I think the biggest difference is the $3,600,000 right? So a $2,600,000 increase in the master lease payment, which would mean if no revenues came in, like just worst case scenario, which I don't believe that would happen, we would be on the hook for that. So I think that is the biggest difference looking at that change in that cap.

But everything I'm seeing, we originally understood that we would be looking at possibly 11,000,000 as a cap. Right? And we were looking at a net to the city of a negative 1,100,000.0. Aren't the numbers that we're looking at now better for the city than that?

Yes. They are, but you have to look at the makeup. So as I mentioned, the other revenues that are about $8,000,000 a portion of that's revenue share, a portion of that is naming rights. So in that original model, I think we might have had $500,000 in naming rights. Now we have $2,000,000 So there's a lot more work to do to get to some of those numbers.

Right. Bottom line for me, I need to know from you, again, the numbers to me, the way everything is presented today, it's better for the city than it was when we originally intended to do this project. So tell me in terms of process, if we were all of a sudden to say, oh, we want to start renegotiating, what would that do to the timeline and what would that do to the project overall? What would we be looking at in terms of time?

I think we could go sit at the table and get something done very quickly if that was the direction that the commission gave us. So maybe a month to get something done. Okay. And I wouldn't imagine that would change the project, maybe just some of the financial structure associated with that. Okay.

Thanks.

Is there more to your presentation? No. Okay. All right. Get out while the going is still good. Yes. Does anyone have any questions of PFM? Okay. There being none. Okay.

Can I make

a couple of comments? I wish you would.

All right. So the reason we have some LOIs is because they're for Phase three, right, which we don't have an approval for. So why would I spend money signing a firm lease when I don't have the approval to go do it? So I said, let's do an LOI to show them that this is for real. And these are from the same people that signed the lease on the approved part that are already qualified financially. So that's for one. Two, saying that we can go at the table and renegotiate the numbers, very, very true. But you cannot negotiate the numbers without physically changing the project. If you physically change the project, it's very simple. Let me give you how simple this is.

Let's say Susan says, Mario, I really, really have you have to stay at $11,000,000 cap. I'm saying, Susan, got your marching orders? Consider it done. Your negative cash flow is going to be a lot closer to your 3,500,000.0 if not higher than what you already contracted to do. So I'm just trying to make it better and easier for the city of Fort Lauderdale because at the end of the day, if you're successful, I will be successful. If I set you up for failure, I'm a failure. So I will not have it. So we were gonna do this the right way, not I'm sorry to say, not the political way. We're going to do it the right way. And it's going to make sure that it makes sense for the community for me to deliver a financially viable project.

We will be flexible. We always were. I think you can attest to our flexibility in the past five years. We went through three different elected officials, two city managers, three city lawyers. We have been flexible and adapting constantly, and we will continue to do that. But it's my duty you hired us to look after your best interest. It's my duty to tell you you're going down the wrong path. But we will go down that path, and you will conclude to that.

Any other questions or Mario? I mean

thanks, Mario, for your candor on that. So it's concerning hearing a significant partner of the city saying the path we're going is a wrong path. I mean, it just raises all kinds of massive concerns. I don't think he said that. He just did. No, he didn't.

No. I'm saying to change the optimum scenario that we looked at, we I'm just disclosing that I've looked at 30 different scenarios. You might come up with a thirty first that I didn't think of, and we'll explore that. But all of those scenarios, this is the optimum scenario for the city and the success of this story. That's all I'm trying to say.

Yes. Okay. Why don't we have these two people sign up to speak and then the commission can Yes, Rich, go.

Yes. Sorry, Rich Waltzer. Thank you, Mayor, Vice Mayor, Commissioners. I am the Founder and CEO of the Aquarium. I know we're talking about a lot of numbers today, but I just want to make a couple of comments. This was a vision that I had a few years ago. I love this city. Know, been here thirty years. How can I bring something that's amazing, that's going to be family friendly, it's going to be educational, it's going to provide jobs, it's going to be something amazing for tourists to come here, they go to the beach, they come off a cruise ship or a plane? Okay. We went to the beach, what else can we do? Well, we're on the beach, we can go to the aquarium. This, I've already got the special Olympics are going to come, they want to be part of this. I have a special program for special needs children. At the age of 18, they age out of all state federal programs.

We're going to provide jobs at the aquarium. We're going to have over 300 jobs. Probably 50 to 60 people are going to be special needs to give them careers. We're going to also have a program for underprivileged families and special needs families. They're going to all come to the aquarium for free. I wanna set up a job fair in commissioner Pittman's district to be able to provide jobs to the underprivileged families to could be able to come to the aquarium. Educational, we have NSU, FIU, the deans and the presidents of those universities and colleges, they're like, we love this. We're coming. We have a program. We're building a theater inside the aquarium to teach kids about oceanic conservation.

We also have a lab that we're building with NSU. The undergraduates are gonna teach kids about the turtles and the sharks and everything. It's gonna be amazing. So I just wanna give you my two comments. What is this gonna provide for the city and the families? A mom coming in with a double wide stroller and another kid, she wants to get the kids out of the house. Where can she go? Instead of dragging them to the mall, let's take them to the aquarium. Let's give them education. Let's give the community education, oceanic conservation. We're in the yachting capital of the world. We're going to have a big dock for the water taxi to come to drop 300,000 people off a year. It's going to be amazing. So I just want to give you those comments. Thank you.

All

right. Thank you so much, Rich. Mary Peloquin followed by Carla Albano. Good afternoon, Mary.

Good afternoon, mayor, vice mayor, commissioners. I'm Mary Peloquin. I'm a resident of Coral Ridge. I'm also a member of the Fort Lauderdale swim masters team, and I spend probably four mornings a week at the aquatic center. If you don't believe me, you can probably see the grooves from my goggles right there.

I see the gills on the side of your face. Yeah.

Right. I I wanna just say a couple of things. I won't take much time, but I really do appreciate, the group for coming and speaking to the members of the the people that actually use the aquatic center, the swimmers and the divers. They held several meetings. I went to, like, two of them. Wasn't I wasn't present for a lot of them, but they did listen to us. I appreciate the fact that the building is lower. I still wish it wasn't as big as it is, but I get I guess, you you'll have to figure that out. But I am I'm happy that it's lower. It's, still, I think it's like five feet shorter than the tower, one part of it that kind of sticks up.

I do have a question. I think one of the meetings at the aquatic center, it was mentioned that the egress of the cars would be on the South side. Is that still the same? It is? You're nodding? Okay. Everybody saw that nod,

right? Well, it's the backup. You can see that. Backup to today's presentation, the Okay. Site plan is on

It is there? Yes. Okay. I appreciate also the on the east side and the renderings that we see of that building, is that phase three, I think

Phase three.

That the training pool is there because that was removed from the original site for ocean rescue. So we asked about that at those meetings, so thank you for putting that back in and the dry land training. That is very important. I have four kids that learn to swim at the aquatic center over a long period of time. They're all pretty old now.

And the one thing I I really like, I love that Ray's Promenade. I think that's really a really great addition and and and the shade over the bleachers, if you've ever sat on those bleachers on a hot day, it's not pleasant. So I think that's really good. The one thing I I'm always concerned about this because this happened decades ago where again, my kids are all older, so this is quite some time ago. The the pools were given over to the Hall of Fame.

The Hall of Fame started running the pools themselves. And it just it did not work. It didn't work. So I just want just wanna make sure that the Fort Lauderdale Aquatic Center belongs to the city. It is a city park, and I know it costs money and it's an expensive park, but it is a public, park. So I always want to make sure it stays the Fort Lauderdale Aquatic Center. I want it to be run by the city. I don't want it to be run by any of the lessees or the subleesies or the sub subleesies. I want it to be remain in the hands of the city. And then the other thing I think that was mentioned by this group here is that 300,000 more people coming to the Peninsula, that's a significant increase of people.

And I realize that they won't all come by car, some will come by boat, but water taxi is a little more expensive than a lot of people realize, or some people park at the garage and walk and etcetera, etcetera. But, there was I remember talk about there was gonna be some kind of a reservation system for people to visit the attractions. I don't know if that's still going to stay in place, but I thought that that was a very good idea. So, I mean, I don't know if you ever were in Disney World pre pandemic when they just, you know, there was it was so crowded, was, like, hard to move around.

I I don't think we're really there yet. I mean They talked about it. Yes, but it will be okay.

Right. So listen, it's important to us.

No, it's important to yes, I understand that. And it's understandable that we don't want to see a rush in all in one hour because it would just overwhelm the site. But having appointments, it makes a lot of sense. But I mean, we haven't even approved the site yet. So we're not know. At

all Well, I ratios didn't realize all this I didn't quite realize what the conversation was gonna be today. So Okay. Whenever I mean, you'll hear me say this again. I'll be back. Okay. All these things. You're on same. I do hope that the I mean, my mother was on the was very much involved in the original hall of Swimming Hall of Fame, And I do hope that they upgrade their exhibit. I mean, that's got to happen. I don't know if any of them are actually in the room, that, you know, John mentioned Johnny Weissmallow's loincloth. Well, you know, some of us are old enough that maybe we would like to see that, but there's gotta be some other things.

You see, John? Standing.

Oh, no.

There we go. So alright. Thank you very

much. You're welcome. Okay. Carla?

Good afternoon, Mayor and commissioners. My name is Carla Albano. I swim with Mary sometimes. I'm a swimmer. I want to say that the ability to collaborate with the design team and the entire development team has been a highlight of my year. We've had so many great conversations and that it was a great example that change can happen if you believe in it and if you believe in working together. So it's been really good. And I'm very, very happy with the design now. And I wanted to say what I told Mario last week, and here's what I said. The new Peninsula honors the sport in a profound and meaningful way.

Secondarily, the project reestablishes and fortifies the prominence and leadership of our city for swimming over the past century. Fort Lauderdale remains undisputed swimming capital of the world. Earlier, we heard the financial analysis, and I was sitting there thinking there's no there was no column for swimming revenue. And it's really sad to me that that it's not viewed as a revenue source, that swimming exhibitions and competitions are not even considered in that way. And many of us have many great ideas to bring in swimming as a spectator sort of event.

So I encourage us to maybe I've talked to you about those ideas. I just want to say a couple other things. I was the one that was opposed to location of ocean rescue. And, obviously, my opinion was not incorporated into what happened with ocean rescue. And I still maintain that its location is a public safety hazard.

And I will maintain that. And I hope I'm wrong is all I can say because I hope that they can respond from that very traffic intensive location that has no view of the ocean. And then lastly, the aquarium. The aquarium is a conundrum. As long as you know swimmers, you know that those of us that swim in the ocean like to swim with them in free in a free space.

So I'm very encouraged by the conservation and rehabilitation factors on the aquarium. And as long as these people know me, I'm gonna be bugging them that every animal that goes in there has to be rehabilitated and not able to be released or has to be from an environment that would be unsafe for them. So but thank you so much. I'm really I hope I live long enough to see the facility built.

Well, we appreciate all the time and effort you put into this. I know you've been very much intricately involved in everything that you described. So thank you for doing that. I know it's all done as a volunteer. And, and certainly from a perspective of, you know, being an experienced and seasoned, you know, swimmer is really important to us Mhmm. That we have the community input.

I first swam there when I was 14, and that was a long over fifty years ago. So thank you very much.

What do think of Johnny Weispiel as going?

Two thoughts about that, by the way.

We have tried to move

Ocean Rescue off of that. So our first plan was to move Ocean Rescue up to Fire Station thirteen. That didn't work. We also, at one point, were talking about moving Ocean Rescue up to the Natchez site, and that never really seemed to work out well too. So we've got to put it where we can and it may not

be

but the ideal it's the site we've got. And the other thing, talking about the aquarium, as you may recall years ago, we had a proposal for an aquarium at the Galleria that was really more of a wet petting zoo. So this is not that. Yes. No. And I'm just happy that I think this is a much better iteration of what this can be. And I think everybody is everybody that's involved with this aquarium, I think, really represents what an aquarium really needs to be as an educational institution. I think that's why you see the involvement of Guy Hardy with it, that's why I'm excited about it.

Didn't we used to have a SeaWorld on 17th Street? We did.

We did.

Okay. So first of all, just want to say that I appreciate all the work that's gone into this. Susan, thank you so much for all of your time and effort in putting this into trying to construct the best deal for the city. And I want to thank Mario and Rich and all your partners for all the work that you've put into this. I think you've done an amazing job of listening to the community and building I mean, final iteration is so much better than anything you created before and that happens in the process.

So everything you've done, I think is definitely a benefit to the community and to those that are visiting our community. So I now understand the numbers. They were very confusing the way they were laid out before and having this opportunity to understand what you had originally presented and now what we're being asked to approve, I think makes a lot more sense than when we were first when I first saw the raw numbers. So I think it's a great project. I don't want to see you change anything.

And like the young lady just said, I hope to live to see the final product because it's going to be an amazing addition to our Oceanside experience. Everything on the Barrier Island that we have done, we've made our best efforts to try to make it more user friendly and more not just visitor friendly, but people who live here can enjoy it as well. And I think that while I don't speak for the commission, certainly the commission can speak for themselves, but I think that moving forward with what you presented today, I think is the best thing for the city. Anything else? So what's the next steps?

So what are next steps, Raquel?

So we were looking for feedback from the commission. It sounds like we've heard some varying points of view. And so one of the suggestions that Susan made earlier was for us to potentially go back and have additional discussions if that's the will of the commission. I'm not sure if there's consensus right now, so I'm listening intently.

Are you suggesting that was clear as mud? Commissioner Beasley Pittman? I'm in

agreement that we go back, to discuss this more. That's my We can sharpen our pencil. Definitely.

Yes. But don't change the design. I think you did a great job. I think you've worked at so many different ways that I think this is going to be a much more successful final product with the shade structure, with parking, with the reduced size. We look to the dive tower as being the attraction, the iconic image, but you know what, this is going be an iconic image too. So I think it all works together very, very well. And I'd love to see it happen sooner than later, certainly before my term is up. Can you get that done? And I think it's a great addition to what the city has to offer.

So may I just want to make