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Home My WebLink AboutAgenda Item Cover Page1T F� 93 AGENDA ITEM COVER PAGE 01A1t° " File ID: #9090 3 °3 F f O R,p? Resolution Sponsored by: Commissioner Ken Russell A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), FOR CONSIDERATION AT A SPECIAL ELECTION SCHEDULED FOR NOVEMBER 2, 2021 PROPOSING TO AMEND SECTION 29-B OF THE CITY CHARTER, TITLED "CITY -OWNED PROPERTY SALE OR LEASE - GENERALLY," TO AUTHORIZE THE CITY COMMISSION, BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A GROUND LEASE AND MASTER DEVELOPMENT AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND BISCAYNE MARINE PARTNERS, LLC (D/B/A "MARINA PARC") FOR APPROXIMATELY TWENTY SEVEN (27) ACRES OF CITY -OWNED PROPERTY (INCLUDING UPLANDS AND SUBMERGED LANDS) IN VIRGINIA KEY AND LOCATED GENERALLY AT 3301, 3307, 3605, AND 3501 RICKENBACKER CAUSEWAY, MIAMI, FLORIDA AND IDENTIFIED AS FOLIO NOS. 01-4217-000-0020, 01-4218-000-0030, 01-4218-000- 0031, 01-4218-000-0010, AND 01-4217-000-0030 ("DEMISED PROPERTY") FOR AN INITIAL TERM OF FORTY FIVE (45) YEARS WITH TWO (2) FIFTEEN (15) YEAR RENEWAL TERMS, WITH THE CUMULATIVE TERM, INCLUSIVE OF BOTH RENEWALS, NOT TO EXCEED SEVENTY-FIVE (75) YEARS, AND PROVIDING FOR AN ANNUAL BASE RENT EQUAL TO THE GREATER OF (A) FAIR MARKET VALUE AS DETERMINED BY TWO (2) INDEPENDENT STATE CERTIFIED APPRAISERS OR (B) TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000.00), PLUS A PERCENTAGE RENT EQUAL TO SIX PERCENT (6%) OF THE GROSS REVENUES GENERATED FROM WET SLIP AND DRY STORAGE, SIX PERCENT (6%) OF GROSS REVENUES GENERATED FROM FUEL SALES, AND FOUR PERCENT (4%) OF GROSS REVENUES GENERATED FROM SUBLEASE INCOME AND OTHER INCOME -GENERATING SOURCES RECEIVED FROM THE PROJECT, PLUS ANY RENT INCREASES AND/OR ADDITIONAL RENTS NEGOTIATED BY THE PARTIES; AUTHORIZING THE USE OF THE DEMISED PROPERTY FOR A MIXED -USE WATERFRONT FACILITY INCLUDING, BUT NOT LIMITED TO, MARINAS, BOATYARD, DOCK MASTER'S OFFICES, SHIP'S STORES, DRY RACK BOAT AND OTHER VESSEL STORAGE, WET SLIP DOCKS, RESTAURANTS, RETAIL, FUEL FACILITIES, AND OTHER RECREATIONAL AND MARINE RELATED USES, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS. -,IV ov . City of Miami *' ISS°°1 il°4I° °° Legislation Resolution Enactment Number: R-21-0290 File Number: 9090 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:7/8/2021 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CITY CHARTER"), FOR CONSIDERATION AT A SPECIAL ELECTION SCHEDULED FOR NOVEMBER 2, 2021 PROPOSING TO AMEND SECTION 29-B OF THE CITY CHARTER, TITLED "CITY -OWNED PROPERTY SALE OR LEASE - GENERALLY," TO AUTHORIZE THE CITY COMMISSION, BY A FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A GROUND LEASE AND MASTER DEVELOPMENT AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND BISCAYNE MARINE PARTNERS, LLC (D/B/A "MARINA PARC") FOR APPROXIMATELY TWENTY SEVEN (27) ACRES OF CITY -OWNED PROPERTY (INCLUDING UPLANDS AND SUBMERGED LANDS) IN VIRGINIA KEY AND LOCATED GENERALLY AT 3301, 3307, 3605, AND 3501 RICKENBACKER CAUSEWAY, MIAMI, FLORIDA AND IDENTIFIED AS FOLIO NOS. 01-4217-000-0020, 01-4218-000-0030, 01-4218-000- 0031, 01-4218-000-0010, AND 01-4217-000-0030 ("DEMISED PROPERTY") FOR AN INITIAL TERM OF FORTY FIVE (45) YEARS WITH TWO (2) FIFTEEN (15) YEAR RENEWAL TERMS, WITH THE CUMULATIVE TERM, INCLUSIVE OF BOTH RENEWALS, NOT TO EXCEED SEVENTY-FIVE (75) YEARS, AND PROVIDING FOR AN ANNUAL BASE RENT EQUAL TO THE GREATER OF (A) FAIR MARKET VALUE AS DETERMINED BY TWO (2) INDEPENDENT STATE CERTIFIED APPRAISERS OR (B) TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000.00), PLUS A PERCENTAGE RENT EQUAL TO SIX PERCENT (6%) OF THE GROSS REVENUES GENERATED FROM WET SLIP AND DRY STORAGE, SIX PERCENT (6%) OF GROSS REVENUES GENERATED FROM FUEL SALES, AND FOUR PERCENT (4%) OF GROSS REVENUES GENERATED FROM SUBLEASE INCOME AND OTHER INCOME -GENERATING SOURCES RECEIVED FROM THE PROJECT, PLUS ANY RENT INCREASES AND/OR ADDITIONAL RENTS NEGOTIATED BY THE PARTIES; AUTHORIZING THE USE OF THE DEMISED PROPERTY FOR A MIXED -USE WATERFRONT FACILITY INCLUDING, BUT NOT LIMITED TO, MARINAS, BOATYARD, DOCK MASTER'S OFFICES, SHIP'S STORES, DRY RACK BOAT AND OTHER VESSEL STORAGE, WET SLIP DOCKS, RESTAURANTS, RETAIL, FUEL FACILITIES, AND OTHER RECREATIONAL AND MARINE RELATED USES, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS. WHEREAS, the City of Miami ("City") owns in fee simple the waterfront properties on Virginia Key known as the Rickenbacker Marina and Marine Stadium Marina, including approximately twenty-seven (27) acres of combined uplands and submerged lands, located generally at 3301, 3307, 3605, and 3501 Rickenbacker Causeway, Miami, Florida ("Demised Premises"); and WHEREAS, Biscayne Marine Partners, LLC (d/b/a "Marina PARC") desires to design and develop the Demised Premises for the purposes of constructing a mixed -use waterfront marine campus including, but not limited to, marinas, boatyards, dock master's offices, ship's stores, dry rack boat and other vessel storage, wetslip docks, restaurants, retail, fuel facilities, and other recreational and marine -related uses ("Project"); and WHEREAS, the City and Marina PARC desire to negotiate and enter into a Ground Lease and Master Development Agreement ("Lease") for the Demised Property for an initial term of forty-five (45) years with two (2) fifteen (15) year options to renew, for a maximum possible term of seventy-five (75) years; and WHEREAS, Marina PARC will pay to the City an annual minimum base rent equal to the greater of fair market value as determined by two (2) independent State certified appraisers or two million five hundred thousand dollars ($2,500,000.00) ("Base Rent"); and WHEREAS, in addition to the Base Rent, Marina PARC will pay to the City a percentage rent equal to six percent (6%) of the gross revenues generated from wet slip and dry storage income, six percent (6%) of gross revenues generated from fuel sales, and four percent (4%) of gross revenues generated from sublease income and other income -generating sources received from the Project ("Percentage Rent"); and WHEREAS, for purposes of calculating Percentage Rent, gross revenues means the total amount of income received by Marina PARC prior to deductions; and WHEREAS, the City will negotiate with Marina PARC to ensure the financial return to the City meets or exceeds fair market value through a minimum rent, profit sharing, or other similar financial contribution from Marina PARC to the City, but in no event less than the Base Rent plus Percentage Rent; and WHEREAS, Marina PARC proposes to design, fund, construct, and operate the Project, which will include, without limitation, floating dock systems, a public coastal promenade, and ample parking facilities; and WHEREAS, the Project will help implement major components of the Virginia Key Master Plan; and WHEREAS, the Lease will allow reasonable public access to the water and reasonable public use of the Property and comply with other waterfront setback and view -corridor requirements of the Charter of the City of Miami, Florida, as amended ("City Charter'); and WHEREAS, the City Commission has determined that the Lease and Project are in the City's best interest; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. The City Attorney is directed to prepare an amendment to the City Charter for consideration at a Special Election to be held November 2, 2021 proposing to amend Section 29-B of the City Charter, titled "City -Owned Property Sale or Lease -Generally," to authorize the City Commission, by a four -fifths (4/5ths) affirmative vote, to waive competitive bidding and authorize the City Manager to negotiate and execute a Lease, in a form acceptable to the City Attorney, between the City and Marina PARC for approximately twenty seven (27) acres of City - owned property in Virginia Key and located generally at 3301, 3307, 3605, and 3501 Rickenbacker Causeway, Miami, Florida 33149, commonly known as the Rickenbacker Marina and Marine Stadium Marina and identified as folio nos. 01-4217-000-0020, 01-4218-000-0030, 01-4218-000-0031, 01-4218-000-0010, and 01-4217-000-0030 for an initial term of forty-five (45) years with two (2) fifteen (15) year options to renew, for a total possible term not to exceed seventy-five (75) years and providing for an annual base rent equal to the greater of fair market value as determined by two (2) independent State certified appraisers or two million five hundred thousand dollars ($2,500,000.00), plus a percentage rent equal to six percent (6%) of the gross revenues generated from wet slip and dry storage income, six percent (6%) of gross revenues generated from fuel sales, and four percent (4%) of gross revenues generated from sublease income and other income -generating sources received from the Project, plus any rent increases and/or additional rents negotiated by the parties, authorizing the use of the Demised Property for a mixed -use waterfront facility including, but not limited to, marinas, boatyard, dock master's offices, ship's stores, dry rack boat and other vessel storage, wetslip docks, restaurants, and other recreational and marine related uses, with restrictions, reversions, and retention by the City of all other rights. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.' APPROVED AS TO FORM AND CORRECTNESS: i ria i "ndez, ity Attor ey 511812021 i ria i "ndez, ity Attor ey 611512021 ' If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.