The City of Lake Worth Beach is located on the southeast coast of Florida, in Palm Beach County, just south of West Palm Beach and north of Delray Beach. Although development in Lake Worth Beach has been intermittent for the last 50 years, development pressure from both the north and south have made the City a focal point for new investment. The City is determined to attract new residents, businesses and activities while still remaining quaint, distinctive and authentic. Lake Worth Beach is known as the place where art is created due to the many artists who call Lake Worth Beach home. It is home to such cultural institutions as the Cultural Council of Palm Beach County, the historic Lake Worth Playhouse, Benzaiten Center for the Arts, and it hosts the annual Street Painting Festival, Pride Fest and Dia de los Muertos. Lake Worth Beach is also known for its inclusive environment and its diverse ethnic make-up.

The available sites discussed below are in the heart of the Downtown, in an area undergoing significant redevelopment. Values in this area have been steadily rising in recent years as more residents move to the urban area for its close proximity to everything Lake Worth Beach has to offer, including the arts district, unique downtown stores, live entertainment and the beach, which is just a little more than a mile away. The City is already investing more than $40M into the roads, utilities and public amenities. Additional capital project improvements are planned using Palm Beach County Penny Sales Tax proceeds.

The purpose of this Request for Proposals (RFP) is to solicit proposals for the development of vacant, CRA-owned parcels along Lake Avenue as well as South ‘L’ Street, South ‘M’ Street and South ‘K’ Street, just to the south of Lake Avenue in both the downtown and mixed-use east zoning districts (maps and corresponding land use regulations are attached).  

There are three total sites which are available for redevelopment.

SITE 1: Contains eleven CRA-owned or controlled properties located between South ‘L’ Street and South ‘M’ Street, located to the north of 1st Avenue South.

SITE 2: Contains three CRA- owned properties at the corner of South ‘K’ Street and 1st Avenue South.

SITE 3: Contains two City-owned parking parcels north of Site 2 on South ‘K’ Street. This site must continue to be only used for public parking/parking garage. The site can be leased from the City by a developer for parking purposes only.

Preferably, the CRA is seeking one proposal from one firm for all of the CRA owned sites. The parcels are in the City’s “Old Town Historic District”. It is the CRA’s intention to competitively select a Developer with the proven ability and interest to construct a development and to own the property once constructed. Projects should average four stories in height. Each project should have a mixture of uses, including parking, which may also include, market rate apartments, for-sale condominiums or hotel rooms, must meet City design guidelines, create foot-traffic and be architecturally significant.

The structures, currently on the sites, are to be moved or demolished before any new construction permits are released. The chosen developer should be shovel ready after the planned, mixed-use development is approved by the City Commission. The City of Lake Worth Beach’s Historic Resource Preservation Board (“HRPB”) issued a Certificate of Appropriateness (“COA”) for the relocation or demolition of the contributing historic structures located on the properties which are the subject of this RFP.  The HRPB’s decision was appealed to the City of Lake Worth Beach City Commission, which upheld the HRPB’s issuance of the COA.  On February 12, 2020, an affected party filed a Petition for Writ of Certiorari with the 15th Judicial Circuit of Palm Beach County challenging the City Commission’s action. The current case should not impact the CRA’s ability to move forward with the RFP.

The City-owned parking lots located at 13 and 19 South ‘K’ Street (Site 3) total .60 acres. These lots are currently used for public parking and have MU-East zoning and DMU land use. Due to Charter restrictions, these parcels are not available for sale. However, the City may lease these properties for up to 20 years. If a developer saw a need to partner with the City for the use of this land, for parking (for example), the City would consider a public-private partnership arrangement. This arrangement could give the developer additional density and square footage in exchange for public parking or lease payments. The details would need to be negotiated at a later time, however, a proposer could include a part of the proposed development using this potential site.

A developer would have the ability to choose OPTION 1 or OPTION 2 when making a proposal to the CRA. This would include either, using Site 1 & 2 only (OPTION 1) or Sites 1, 2 and 3 (OPTION 2). A proposal with an alternate scenario may be submitted. The evaluation committee will decide whether or not to consider the proposal.

The Lake Worth Beach CRA has undertaken both housing and commercial property development over the last decade. The goal of the CRA is to spur private investment and improve property values in the District. In 2010 the CRA was awarded $23M from the Department of Housing and Urban Development for the development of at least 100 new or rehabilitated affordable housing units. The CRA and its partners, far exceeded this goal and, to date, created over 175 residential units. Other projects associated with the purchase of formerly blighted properties also has led to the development of over 12,000 square feet of commercial space. With the development of commercial space, local jobs were created, meeting an NSP-2 National Objective. The CRA is seeking to continue the development of housing choices, while also creating additional local job opportunities.

With that in mind, the CRA secured a line of credit and purchased properties in key areas of the City. For this particular assemblage, the CRA partnered with the City to facilitate the development of a mixed-use project to attract residents to the downtown area and stimulate additional commercial activity in the core.  While Lake and Lucerne Avenues continue as retail and entertainment corridors, additional market rate units in close proximity will help create a compact, walkable and sustainable downtown. 

Due to the configuration of the purchased lots, the proposed development would have access to 125 feet of frontage along Lake Avenue. Lake Avenue is the City’s premiere retail corridor with access to both I-95 and the beach. Although a development would need to be architecturally sensitive to the historic built environment, the Lake Ave. frontage provides prime commercial space as well as a connection to the remainder of the project. The CRA is seeking a variety of quality housing units, a consolidation of uses including residential, commercial/office and parking, and an expansion of the urban center to create healthier and livelier main streets.

The selected developer will, at a minimum:

• Be an experienced, stable and financed development firm which has completed similar projects.
• Be able to develop aesthetically-pleasing, well-designed units incorporating innovative features and amenities such as green, sustainable building techniques while meeting the City’s mixed-use zoning regulations, thoroughfare design guidelines and historic preservation design guidelines.
• Work with CRA/ City Staff to identify and incorporate the design objectives for the area, as expressed in the City’s Comprehensive Plan and the Arts and Cultural Master Plan for Downtown Lake Worth Beach.
• The project must include at least 60 market rate or above rental or for-sale units along with commercial uses on the ground floor of Lake Avenue and portions of South “L,” “M,” and “K” Streets. Please note that the CRA is seeking active ground floor uses that are open during the day and night. A market study that supports the proposed project is encouraged.
• The project must also produce enough parking to meet the demands of the development. If the use of the City parking lots (Site 3) are included in the project, at least 160 spaces must be set aside for public use. The location of the parking, using the sites available, its structure and design may be interpreted by the developer. If public parking is included, incentive money may be available from the City.
• Proposals that include a hotel use are acceptable.
• The proposal shall include a purchase price the developer is ready and willing to pay for the 14 CRA-owned parcels. A minimum offer of $2.8M is required. Any offers above the minimum required will earn the proposer extra points.  If, however, the Proposer is willing to develop at least 160 public spaces for the City (for public use) a lower price for the property will be considered.
• Only development proposals that will generate ad-valorem taxes will be accepted.

• The redevelopment should support, enhance and elevate the City’s image and brand on a regional and national basis.

• Projects incorporating public art or public amenities shall be afforded additional consideration.

• Projects providing funds to assist with the relocation of the existing historic structures on the project site shall also be given additional consideration.

• Firm or individual must submit, at a minimum, a proposal for the redevelopment of SITES 1 & 2. The CRA reserves the right to reject proposals that do not include the redevelopment of SITES 1 & 2.