TO: Margate CRA Chair and Members of the Board
FROM: Cale Curtis, CRA Executive Director
DATE: March 11, 2026
Title
APPROVAL OF A DEVELOPMENT AGREEMENT BETWEEN THE MARGATE COMMUNITY REDEVELOPMENT AGENCY AND BROOKFIELD DA HOLDINGS LLC, (AN AFFILIATE OF BPG ACQUISITIONS LLC) FOR THE MARGATE CITY CENTER PROJECT
BACKGROUND: In April 2023, the MCRA entered into an Agreement with Colliers International Florida, LLC, (Colliers) to provide real estate brokerage, marketing and advisory services for the 50 ± acres in the Margate City Center. In collaboration with the Board, Colliers issued an Offering Memorandum (OM) to which six developers responded and were presented to the Board at the September 30, 2024 meeting. After multiple presentations by several developers, the Board ultimately selected Brookfield Properties at the March 12, 2025 meeting.
A Memorandum of Understanding (MOU) between BPG Acquisitions, LLC (Brookfield Property Group) and the MCRA was entered into on April 9, 2025 which allowed for a 12-month period to negotiate a Development Agreement. Brookfield Properties provided an update to the Board at the December 9, 2025 meeting and presented financial term sheets and conceptual plans that had been negotiated over the previous eight months and helped define the content of the Development Agreement. Below is an Executive Summary of the Development Agreement that is being brought before the Board for approval and is attached.
Executive Summary of Margate Town Center Development Agreement
Parties & Purpose
• Agreement between City of Margate Community Redevelopment Agency (CRA) (“Owner”) and Brookfield DA Holdings LLC (“Developer”), an affiliate of BPG Acquisitions LLC.
• Purpose: Develop approximately 50 acres into Margate City Center, a multi-phase residential/commercial project with supporting public improvements.
Project Structure
• Development may occur in up to three (3) Phases; Phase I must be first.
• Developer receives exclusive development rights during the Term, subject to conditions.
• Public Improvements and Private Improvements will be constructed pursuant to approved plans.
Options to Ground Lease
• Developer receives three irrevocable Options to ground lease separate portions of the Property-one per Phase.
• If Developer does not exercise option to ground lease Phase 1 at end of its 18-month Entitlements Period, entire Agreement terminates.
Development Program
• Phase Development Criteria:
o Phase I: 390 residential units / 39,300 sq ft commercial
o Phase II: 264 residential units / 13,500 sq ft commercial
o Phase III: 296 residential units / 18,000 sq ft commercial
Caps: Max 950 total residential units; minimum 65,000 total commercial sf.
• Final program & design of Phase I will be determined through the process outlined below
• Developer may modify program up to 20%, so long as overall criteria remain satisfied.
CRA Funding Commitment
• CRA contributes $35,000,000 toward the Public Improvements, disbursed per milestones and infrastructure agreement (Schedule B).
• Public Improvements reimbursed under separate Infrastructure Reimbursement and Property Access Agreement.
Entitlements & Due Diligence
• Developer has 18-month Entitlements Period per Phase (subject to Unavoidable Delays).
• Developer may commence diligence on Phases II/III by notice; Phase I starts automatically upon execution of DA.
• Developer may pause and recommence diligence for Phases II/III during the Term, subject to Milestones, but does not have this flexibility for Phase I.
Milestones & Schedule Adjustments
• Project milestones for Phase I are set forth in the chart below:
|
Milestone |
Time from Prior Milestone |
CRA Board Action |
|
Initial Concept Design |
3 Months from DA Execution |
Consultation/Solicit Feedback |
|
Final Concept Design |
3 Months |
Approval of “Basis of Design” |
|
100% Schematic Design (Pre-Site Plan Submission) |
6 Months |
Review Only |
|
100% Design Development |
6 Months |
Review Only |
|
Environmental Review |
Concurrent with 100% SD |
N/A |
|
Traffic Study/ FDOT Submission |
Concurrent w/ 100% DD |
N/A |
|
Special Exception Application (if Applicable) |
If Necessary Post-Site Plan Submission |
Review Only |
• Developer may request one 90-day administrative extension.
Plan Review & Design
• Owner approval of Final Concept Design required for Public & Private Improvements.
• Developer will present 100% Schematic Design package prior to submission for Site Plan approval, and 100% Design Development package prior to completion of Site Plan approval process.
• Developer has sole discretion over architectural consultants, contractors, operators.
• CRA must reasonably assist Developer with zoning text amendment or statutory development agreement with City of Margate, if necessary.
Environmental Remediation
• If contamination found, Developer may remediate or use a special-purpose entity (SPE).
• Developer may elect to purchase a PLL policy.
• CRA shares remediation costs above PLL policy limits 50/50, capped at $500,000 across all Phases.
Transfers
• Developer cannot transfer before Phase I completion; after that, transfers allowed to a Qualified Developer with:
o 120 days’ notice
o Assignment of applicable lease/option
o 25% transfer fee on net proceeds
• Owner may not transfer Property subject to the Development Agreement without Developer consent.
Defaults & Remedies
• Developer default occurs after notice and failure to cure
• Upon default, Owner may terminate agreement and receive certain project materials; may also receive reimbursement of Owner expenses (up to $150K) if Developer has not invested $1M within 18 months of the execution of the DA.
Term
• Initial term: 15 years, with three 5-year extensions tied to milestones.
• Agreement runs with the land until terminated or superseded by Ground Leases.
* * * * * * *
Executive Summary of Margate Town Center Ground Lease
Parties & Premises
• Landlord: City of Margate Community Redevelopment Agency, a Florida public body.
• Tenant: A to-be-formed Brookfield affiliate).
• Overall Land: ~50 acres owned by Landlord at N. State Road 7 & Margate Blvd.
• Phase I Development Site: An approximately 17-acre vacant, undeveloped portion of the Overall Land adjacent to and southeast of U.S. Highway 441.
• Premises: Tenant leases the Development Site; public improvements generally excluded from Ground Lease and retained by CRA (or City) except limited circumstances (e.g., public garage spaces).
Term
• Lease Term: 99 years, commencing on the Commencement Date.
• Effective Date: The date the lease is executed (e.g., after the Entitlements Period under the DA).
• Commencement Date: Either (i) the Effective Date if construction permits were issued prior to execution, or (ii) 30 days after permits are issued if not issued beforehand.
• Outside Commencement Date: If the Commencement Date does not occur within 6 months after the Effective Date, either party may terminate.
Base Rent
• Initial Base Rent: $100,000 per year.
• Rent Reset: Every 60 months after the Commencement Date, Base Rent resets to 75% of the average Annual Ground Rent (including both Base & Participation Rent) paid over the prior 60-month period.
• Reimbursement Credit: If Landlord fails to reimburse Tenant for eligible Public Improvement costs, Tenant receives a credit against Rent.
Participation Rent
• Applies after Certificate of Occupancy is issued for the Improvements.
• Calculation: Participation Rent = (Applicable Percentage × Effective Gross Income) - Base Rent. Applicable Percentage for Phase I = 3.25%.
• Payment: Lump-sum within 120 days after each Lease Year.
1 As defined in the Agreement
Other Key Terms and Documents
• CRA can transfer its fee interest post-completion. Developer also has post-completion transfer rights subject to satisfying certain standards (including minimum net worth of at least 10x the annual Base Rent and demonstrated track record operating similar projects) and payment of transfer fee (same economic terms as for a transfer under the Development Agreement).
• Ground Lease contains provisions regarding leasehold mortgagees, bifurcation (for subdivision or condominiums, if needed), casualty, condemnation, etc. CRA’s indemnity obligation is limited by Florida’s sovereign immunity statute.
• Completion Obligations in Ground Lease will be guaranteed by an affiliate of Tenant with a minimum net worth of at least $200 million pursuant to an already negotiated form of Completion Guaranty.
• The parties will also execute an already negotiated form of Reimbursement Agreement governing the funding of the Public Improvements, which will provide for funding to be released based on approved budgets and a draw process (e.g., submission of invoices).
• During the entitlements period, the parties will prepare a master covenants to govern shared components, easements, access, maintenance, and project wide standards.
RECOMMENDATION: Approval of the Development Agreement
FISCAL IMPACT: To be determined
CONTACT PERSON: Cale Curtis, CRA Executive Director