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HomeMy WebLinkAboutAgenda Item Summary Form1IV OF Hw `93 AGENDA ITEM SUMMARY FORM File ID: #12027 o..Ryl. Date: 07/05/2022 Requesting Department: Department of Real Estate and Asset Management Commission Meeting Date: 07/28/2022 Sponsored By: District Impacted: District 2 Type: Resolution Subject: Ballot Charter Amendment - Hyatt JLKC Lease & Redevelopment Purpose of Item: A Resolution of the Miami City Commission, with attachment(s), approving, setting forth, and submitting to the Electorate a proposed amendment to the Charter of the City of Miami, Florida, as amended ("Charter"), known as Charter Amendment no. _; amending Section 29-B of the Charter, titled "City -Owned Property Sale or Lease Generally," to authorize the City Commission by four -fifths (4/5ths) affirmative vote, to waive competitive bidding and execute an amended and restated lease with the existing tenant, HRM Owner LLC, to provide a new 99-year term and expand the lease to include the existing Hyatt Hotel and James L. Knight Convention Center property at 298, 300, 330, & 400 Se 2nd avenue (collectively, "Property"), providing for the redevelopment of the Property to include at least a 615 key hotel, 188,000 sf of convention/meeting space, 682 apartments, parking, additional public open space, and an expanded public Riverwalk, all at no cost to the City, for no less than fair market value rent, consisting of the greater of participation rent equal to 2.5% of gross revenues and an increase of minimum rent from $250,000 to $2,500,000 annually, and further providing that Tenant shall make a $5,400,000 payment toward the Affordable Housing Trust Fund, with restrictions, reversions, and retention by the City of all other existing City rights, and with such other terms more particularly set forth in the Term Sheet attached as Exhibit A ("Term Sheet"); calling for a referendum and providing that the Charter Amendment no._ will be submitted to the electorate at the referendum special election to be held concurrently with the general election on November 8, 2022; designating and appointing the City Clerk as the official representative of the City Commission with respect to the use of voter registration books and records; further directing the City Clerk to cause a certified copy of the herein resolution to be delivered to the Supervisor of Elections of Miami -Dade County, Florida not less than forty-five (45) days prior to the date of such election; directing the City Manager to use good faith efforts to bring before the Commission for approval a fully negotiated lease agreement in accordance with the term sheet on or before the November 17, 2022 regular City Commission meeting, subject to approval by the electorate on November 8, 2022; providing an immediate effective date for this Resolution. Background of Item: The City of Miami ("City") is the owner of riverfront real property located at 298 SE 2nd Avenue, 300 SE 2nd Avenue, 330 SE 2nd Avenue, and 400 SE 2nd Avenue, Miami Florida, 33131 with Tax Folio Identification Numbers 01-3137-022-0010, 01-3137-022- 0030, 01-3137-022-0031, and 01-3137-022-0020 (collectively, "Property"). The City entered into a long term lease for the Property pursuant to a Lease and Agreement for Development dated as of September 13, 1979 (as amended, supplemented, and assigned, "Original Lease"). On October 28, 2021, pursuant to Resolution R-21-0442, the City in anticipation of pursuing a redevelopment or significant renovation of the facilities, authorized the assignment of the Original Lease to HRM Owner, LLC ("Tenant"). The Original Lease has a remaining term, including renewals, of approximately fifty (50) years, and would require additional renovations of the Property. The City wishes to authorize the City Manager to negotiate and bring back for City Commission approval an amended and restated lease agreement, in a form acceptable to the City Attorney, to grant Tenant a new lease for a term of ninety-nine (99) years, to include the adjacent James L. Knight Center and also requiring fair market value rent, consisting of an annual minimum rent increase from $250,000 to $2,500,000 or a participation rent of 2.5% of gross revenues, if greater, and requiring that Tenant redevelop the Property to include a 615-key hotel, 188,000 sf of convention/meeting space, 682 apartments, parking, additional public open space and an expanded Riverwalk ("Lease"). The Tenant shall additionally make a one-time payment equal to five million two hundred thousand dollars ($5,200,000) to be applied to the Affordable Housing Trust Fund. The terms of the Lease shall be as more particularly described in the Term Sheet, attached and incorporated as Exhibit A ("Term Sheet"). Budget Impact Analysis Item is Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: 0 Reviewed By Department of Real Estate and Asset Management Review Completed 07/18/2022 10:12 AM Office of Management and Budget Pedro Lacret Office of Management and Budget Marie Gouin City Manager's Office Larry M. Spring City Manager's Office Arthur Noriega V Legislative Division Valentin J Alvarez OMNI Community Redevelopment Agency Office of the City Attorney Nicole Ewan City Commission Nicole Ewan Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Legislative Division Valentin J Alvarez OMNI Community Redevelopment Agency Office of the City Attorney Victoria Mendez Office of the City Clerk City Clerk's Office Jacqueline Lorenzo Department Head Budget Analyst Review Completed 07/18/2022 5:40 PM Budget Review Completed 07/18/2022 6:24 PM Assistant City Manager Review Completed 07/19/2022 9:39 AM City Manager Review Completed 07/19/2022 10:05 AM Legislative Division Review Completed 07/19/2022 11:01 AM Isiaa Jones ACA Review Completed Approved Form and Correctness Skipped 07/28/2022 8:57 AM Meeting Completed 07/28/2022 9:00 AM Signed by the Mayor Completed 07/28/2022 11:13 PM Signed and Attested by the City Clerk Completed 07/28/2022 11:14 PM Legislative Division Review Completed 07/29/2022 6:43 AM Isiaa Jones ACA Review Completed Approved Form and Correctness with Modification(s) Completed Rendered Completed 07/29/2022 4:51 PM City of Miami Legislation Resolution Enactment Number: R-22-0262 File Number: 12027 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:7/28/2022 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING, SETTING FORTH, AND SUBMITTING TO THE ELECTORATE A PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CHARTER"), KNOWN AS CHARTER AMENDMENT NO. 1; AMENDING SECTION 29-B OF THE CHARTER, TITLED "CITY -OWNED PROPERTY SALE OR LEASE GENERALLY," TO AUTHORIZE THE CITY COMMISSION BY FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND EXECUTE AN AMENDED AND RESTATED LEASE WITH THE EXISTING TENANT, HRM OWNER LLC ("TENANT"), TO PROVIDE A NEW 99-YEAR TERM AND EXPAND THE LEASE TO INCLUDE THE EXISTING HYATT HOTEL AND JAMES L. KNIGHT CONVENTION CENTER PROPERTY AT 298, 300, 330, & 400 SOUTHEAST 2ND AVENUE (COLLECTIVELY, "PROPERTY'), PROVIDING FOR THE REDEVELOPMENT OF THE PROPERTY TO INCLUDE AT LEAST A 615 KEY HOTEL, 188,000 SQUARE FEET OF CONVENTION/MEETING SPACE, 682 APARTMENTS, PARKING, ADDITIONAL PUBLIC OPEN SPACE, AND AN EXPANDED PUBLIC RIVERWALK, ALL AT NO COST TO THE CITY, FOR NO LESS THAN FAIR MARKET VALUE RENT, CONSISTING OF THE GREATER OF PARTICIPATION RENT EQUAL TO 2.5% OF GROSS REVENUES OR AN INCREASE OF MINIMUM RENT FROM $250,000.00 TO $2,500,000.00 ANNUALLY, AND FURTHER PROVIDING THAT TENANT SHALL MAKE A MINIMUM $25,000,000.00 AFFORDABLE HOUSING CONTRIBUTION, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER EXISTING CITY RIGHTS; CALLING FOR A REFERENDUM AND PROVIDING THAT THE CHARTER AMENDMENT NO.1 WILL BE SUBMITTED TO THE ELECTORATE AT THE REFERENDUM SPECIAL ELECTION TO BE HELD CONCURRENTLY WITH THE GENERAL ELECTION ON NOVEMBER 8, 2022; DESIGNATING AND APPOINTING THE CITY CLERK AS THE OFFICIAL REPRESENTATIVE OF THE CITY COMMISSION WITH RESPECT TO THE USE OF VOTER REGISTRATION BOOKS AND RECORDS; FURTHER DIRECTING THE CITY CLERK TO CAUSE A CERTIFIED COPY OF THE HEREIN RESOLUTION TO BE DELIVERED TO THE SUPERVISOR OF ELECTIONS OF MIAMI-DADE COUNTY, FLORIDA NOT LESS THAN FORTY- FIVE (45) DAYS PRIOR TO THE DATE OF SUCH ELECTION; FURTHER DIRECTING THE CITY MANAGER TO USE GOOD FAITH EFFORTS TO BRING BEFORE THE COMMISSION FOR 4/5THS APPROVAL A FULLY NEGOTIATED LEASE AGREEMENT, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY ON OR BEFORE THE DECEMBER 8, 2022 REGULAR CITY COMMISSION MEETING, SUBJECT TO APPROVAL BY THE ELECTORATE ON NOVEMBER 8, 2022; PROVIDING AN IMMEDIATE EFFECTIVE DATE FOR THIS RESOLUTION. WHEREAS, the City of Miami ("City") is the owner of riverfront real property located at 298 Southeast 2nd Avenue, 300 Southeast 2nd Avenue, 330 Southeast 2nd Avenue, and 400 Southeast 2nd Avenue, Miami Florida, 33131 with Tax Folio Identification Numbers 01-3137- 022-0010, 01-3137-022-0030, 01-3137-022-0031, and 01-3137-022-0020 (collectively, "Property"); and WHEREAS, the City entered into a long-term lease for the Property pursuant to a Lease and Agreement for Development dated as of September 13, 1979 (as amended, supplemented, and assigned, "Original Lease"); and WHEREAS, on October 28, 2021, pursuant to Resolution No. R-21-0442, the City in anticipation of pursuing a redevelopment or significant renovation of the facilities, authorized the assignment of the Original Lease to HRM Owner, LLC ("Tenant"); and WHEREAS, the Original Lease has a remaining term, including renewals, of approximately fifty (50) years, and a requirement for additional renovations of the Property; and WHEREAS, the City wishes to authorize the City Manager to negotiate and bring back for City Commission approval an amended and restated lease agreement, in a form acceptable to the City Attorney, to grant Tenant a new lease for a term of ninety-nine (99) years, to include the adjacent James L. Knight Center and also requiring fair market value rent, consisting of an annual minimum rent increase from $250,000.00 to $2,500,000.00 or a participation rent of 2.5% of gross revenues, if greater, and requiring that Tenant redevelop the Property to include a 615-key hotel, 188,000 sf of convention/meeting space, 682 apartments, parking, additional public green space and an expanded Riverwalk ("Lease"); and WHEREAS, the Tenant shall additionally make a one-time payment Affordable Housing contribution equal to a minimum of twenty-five million dollars ($25,000,000.00); and WHEREAS, the tenant shall also contribute four hundred thousand dollars to the City for a traffic study ($400,000.00) and the balance if any to be contributed to affordable housing; and WHEREAS, the City Commission directs the City Manager to negotiate the Lease and to use good faith efforts to place such Lease for approval on a Commission agenda on or before the December 8, 2022 City Commission meeting, subject to approval by the electorate on November 8, 2022; and WHEREAS, the City Commission has determined that the Lease will be 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. In accordance with the provisions of Sections 3 and 29-B of the Charter of the City of Miami, Florida, as amended ("Charter"), and § 6.03 of the Miami -Dade County Home Rule Charter, a Referendum Special Election is to be held concurrently with the General Election being called and directed in the City of Miami, Florida, from 7:00 A.M. until 7:00 P.M. on Tuesday, November 8, 2022, the purpose of submitting to the qualified electors of the City for their approval or disapproval of the proposed Charter Amendment for the Lease as stated herein. Section 3. Section 29-B of the Charter is proposed to be amended in the following particulars:' "CHARTER AND CODE OF THE CITY OF MIAMI, FLORIDA SUBPART A. THE CHARTER Sec. 29-B. City -owned property sale or lease — Generally. Notwithstanding any provision to the contrary contained in this Charter or the City Code, and except as provided below, the city commission is prohibited from favorably considering any sale or lease of property owned by the city unless there is a return to the city of fair market value under such proposed sale or lease. The city commission is also prohibited from favorably considering any sale or lease of city -owned property unless (a) there shall have been, prior to the date of the city commission's consideration of such sale or lease, an advertisement soliciting proposals for said sale or lease published in a daily newspaper of general paid circulation in the city, allowing not less than ninety (90) days for the city's receipt of proposals from prospective purchasers or lessees, said advertisement to be no less than one-fourth (114) page and the headline in the advertisement to be in a type no smaller than 18-point and, (b) except as provided below, there shall have been at least three (3) written proposals received from prospective purchasers or lessees; however, if there are less than three (3) such proposals received and if the guaranteed return under the proposal whose acceptance is being considered is equal to fair market value the city commission determines that the contemplated sale or lease will be in the city's best interest then, subject to the approval of a majority of the votes cast by the electorate at a referendum, the sale or lease may be consummated. Any lease for the development of improvements of city -owned property which has been approved by voter referendum shall require additional voter approval for a development on City -owned property where the developer has not obtained the necessary building permits within four (4) years of the effective date of the lease. Such section shall not be applicable when the delay in the performance of any obligation is as a result of force majeure, or litigation that questions the validity of the vote, or the City Commission action to place the question for referendum, then the performance of such obligation shall be extended by the length of the delay. In the case of city -owned property which is not waterfront, when the value of such property to be sold or leased (individual leaseholds within a single city - owned property shall not be considered as a single parcel of property for such valuation purposes) is five hundred thousand dollars ($500,000) or less, based on an appraisal performed by a state -certified appraiser, the city commission, by a 4/5ths affirmative vote, may sell or lease said city -owned property after compliance with the advertisement requirements set forth above but without the necessity of a referendum. The above provisions and any other city requirements for competitive bidding shall not apply when: (a) conveying property to implement housing programs or projects which are intended to benefit persons or households with low and/or moderate income, the ' Words and/or figures stricken through shall be deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate omitted and unchanged material. criteria of which to be provided for by federal and/or state law or by the city commission; (b) conveying property to implement projects authorized under the Florida Community Redevelopment Act of 1969, as amended; (c) conveying property to implement projects of any governmental agency or instrumentality; (d) disposing of property acquired as a result of foreclosure; (e) disposing of property acquired in connection with delinquent taxes which properties were conveyed to the city by the Miami -Dade board of county commissioners under the provisions of Section 197.592 Florida Statutes, as amended; and (f) disposing of non -waterfront property to the owner of an adjacent property when the subject property is 7,500 square feet or less or the subject non - waterfront property is non -buildable. Notwithstanding anything herein to the contrary, the city commission, by a 4/5ths affirmative vote, may: (a) grant a lessee of city -owned property a one-time extension during the last five years of its lease, without the necessity of a referendum, for the purpose of funding additional capital improvements. The extended term shall not exceed twenty-five percent of the original term or ten years, whichever is less. The granting of such an extension is subject to the lessee paying fair market rent as determined by the city at the time of such extension and not being in default of its lease with the city nor in arrearage of any monies due the city; and (b) amend the Lease Agreement between the City of Miami and Biscayne Bay Restaurant Corp., d/b/a Rusty Pelican, dated February 13, 1970, as amended, to (i) extend the lease for an additional term of fifteen (15) years, with the option to renew for two (2) additional five (5) year periods, (ii) increase the amount of the minimum guarantee to the City to at least $360,000 per lease year effective upon execution of the lease amendment, and (iii) require Rusty Pelican to complete capital improvements to the property, including a public baywalk, in the amount of not less than $3 Million, within twenty-four (24) months of the effective date of the lease amendment; and (c) waive competitive bidding and execute a lease with Dade Heritage Trust, Inc. for the City -owned building located at 190 Southeast 12th Terrace, for a term of thirty (30) years, with two (2) thirty (30) year renewals, for minimum annual rent of $600.00 with Consumer Price Index adjustments, with restrictions, reversions, and retention by the City of all other rights; and (d) waive competitive bidding and execute a Fifth Amendment to the Lease Agreement with Aligned Bayshore Marina, LLC, also known as Monty's, to extend the current lease term by an additional term of approximately thirty two (32) years (to expire May 31, 2067), with two (2) ten (10) year options to renew for a total term of fifty-two (52) years (to expire May 31, 2087); which will increase minimum rent payment by an additional two hundred thousand dollars ($200,000.00) per lease year, for a minimum of ten million dollars ($10,000,000.00) over the base term of the amended Lease Agreement, or one and three quarters percent (1.75%) of gross rent receipts from the Property, whichever is greater, as additional rent due to the City and, commencing January 1, 2019, minimum annual total rent (inclusive of the additional minimum rent) shall be one million five hundred thousand dollars ($1,500,000.00), plus an additional twenty five thousand dollars ($25,000.00) to be paid on an annual basis for the full amended term to a special fund to be established by the City for the benefit of low income housing renovation; further providing capital improvements to the Property of a minimum of seven million five hundred thousand dollars ($7,500,000.00) to be spent within three (3) years of the electorate's approval of the Fifth Amendment to the Lease Agreement; further creating a capital account requiring a minimum additional investment in the Property of four million dollars ($4,000,000.00) over the amended Lease term, inclusive of the renewal options; requiring a Transfer Fee payment to the City if the Property is transferred or assigned; and further requiring a Refinancing Fee payment to the City should the Property be refinanced after the initial refinancing. (e) waive competitive bidding and approve the Fifth Modification to the Lease with ESJ JI Leasehold, LLC, which modifies the remaining term of approximately forty three (43) years and extends the Term from the year 2060 to the year 2099 and includes a Fifteen (15) year option to extend the Lease to the year 2114; providing an additional annual rent payment of Two Hundred Fifty Thousand Dollars ($250,000.00) increasing, once the proposed hotel has stabilized, to the greater of One Million Two Hundred Twenty Thousand Dollars ($1,220,000.00) or Five Percent (5%) of annual hotel gross revenues from a new privately funded hotel development with a minimum cost of Fifty Million Dollars ($50,000,000.00) with a maximum of Three Hundred (300) rooms and a maximum height of One Hundred Thirty (130) feet, at ESJ's expense and option, and a design subject to City approval and successful land use and zoning changes, as necessary, with said rent being in addition to the currently received greater of annual rent of Five Hundred Two Thousand One Hundred Sixty Eight Dollars ($502,168.00) and percentage rent from Jungle Island revenue; with parking spaces sufficient to meet zoning ordinance requirements; ancillary improvements consisting of retail and/or restaurant space of up to ten thousand (10,000) square feet and meeting room space of up to thirty thousand (30,000) square feet; with an aggregate payment of Seven Hundred Thousand Dollars ($700,000.00) towards the Ichimura-Miami Japanese Gardens for construction of a walkway to Jungle Island and necessary repairs and maintenance of the Ichimura-Miami Japanese Gardens; payments totaling Seven Hundred Fifty Thousand Dollars ($750,000.00) over a ten (10) year period to be used for affordable housing; establishing a reserve account for capital repairs of Two Hundred Thousand Dollars ($200,000.00) per year; implementing a transfer fee of Three Percent (3%) of gross sales proceeds if the Property is transferred or assigned; implementing a refinancing fee of One Percent (1 %) of refinancing loan proceeds if the Property is refinanced after the initial refinancing. (f) waive competitive bidding to negotiate and execute a Ground Lease and Master Development Agreement with Miami Freedom Park, LLC, for a total lease term of ninety-nine (99) years, for approximately seventy-three (73) acres of City - owned property located generally at 1400 Northwest 37th Avenue, Miami, Florida 33125, also known as Melreese County Club, with a minimum annual base rent payable to the City equal to the greater of (a) fair market value as determined by state certified appraisers or (b) five percent (5.0%) of rent from the retail, office, and hotel development within the Demised Property, but annual base rent of no less than three million five hundred seventy-seven thousand three hundred sixty- five dollars ($3,577,365.00), in addition to a contribution to the City of twenty million dollars ($20,000,000.00) payable over thirty (30) years in annual installments, and any rent increases and/or additional rents negotiated by the parties; authorizing the use of the Demised Property for a soccer stadium; with ai least one (1) million square feet of art and entertainment center including food and beverage venues, offices, retail, and a hotel with at least 750 units and conference center with ancillary commercial uses, guaranteeing a living wage for all on -site employees, further requiring MFP to undertake the remediation and Site development for a public park of approximately fifty-eight (58) acres to be developed on property adjacent to the Demised Property as MFP's sole cost, with any restrictions, reversions, and retention by the City of all other rights including at least a one (1 %) transfer fee payable to the City, with such Lease and Master Development Agreement requiring City Commission approval by a four -fifths (4/sths) vote. (q) waive competitive bidding and approve an amended and restated Lease with HRM Owner LLC, to grant HRM Owner LLC a term not to exceed ninety-nine (99) years, to include the adjacent James L. Knight Center property, for fair market value rent, including the greater of participation rent of 2.5% of gross revenues and increased annual rent from $250,000.00 to $2,500,000.00, and also requiring that the tenant redevelop the property and include, at minimum, a 615-key hotel, 188,000 square feet convention/meeting space, 682 apartments, parking, a $25,000,000.00 affordable housing contribution to the City, additional public green space and an expanded Riverwalk at its sole expense and at no cost to the City. Notwithstanding anything in this Charter to the contrary, the City may enter into leases or management agreements, for any city -owned submerged lands, with entities having a possessory or ownership interest in the abutting riparian uplands for building marinas, docks or like facilities, using methods adopted by ordinance on the condition that such leases or management agreements result in a return to the City of at least fair market value." Section 4. The Referendum Special Election shall be held at the polling places in the precincts designated, all as shown on the list attached hereto and made a part hereof and referred to as Exhibit "B" or as may be designated by the Supervisor of Elections of Miami -Dade County, Florida ("Supervisor'), in conformity with the provisions of the general laws of the State of Florida ("State"). The Precinct Election Clerks and Inspectors to serve at said polling places on said Referendum Special Election date shall be those designated by the Supervisor of Elections of Miami -Dade County, Florida, for such purpose in accordance with the general laws of the State. A description of the registration books and records which pertain to Referendum Special Election precincts wholly or partly within the City and which the City is adopting and desires to use for holding such Referendum Special Election is all voter information cards, registration books, records and certificates pertaining to electors of the City and established and maintained as official by the Supervisor of Elections of Miami -Dade County, Florida, in conformity with the provisions of the general laws of the State, are hereby adopted and declared to be, and shall hereafter be recognized and accepted as, official registration cards, books, records and certificates of the City. Section 5. In compliance with Section 100.342, Florida Statutes (2021), regarding any Referendum Special Election not otherwise provided for there shall be at least thirty (30) days' notice of the Referendum Special Election by publication in a newspaper of general circulation in the City. The City Clerk is authorized and directed to publish notice of the adoption of this Resolution and of the provisions hereof, at least twice, once in the fifth week and once in the third week prior to the week in which the aforesaid Referendum Special Election is to be held, in newspaper(s) of general circulation in the City which notice shall be substantially in the following form: "NOTICE OF REFERENDUM SPECIAL ELECTION TO AMEND THE MIAMI CITY CHARTER TO BE HELD TUESDAY, NOVEMBER 8, 2022 IN THE CITY OF MIAMI, FLORIDA PURSUANT TO RESOLUTION NO. R-22-0262 A Referendum Special Election will be held on Tuesday, November 8, 2022 from 7:00 A.M. until 7:00 P.M. in the City of Miami, Florida, at the polling places in the several Referendum Special Election precincts designated by the Supervisor of Elections of Miami -Dade County, Florida, as set forth herein, unless otherwise provided by law, and submitting to the qualified electors of the City of Miami, Florida, the following question: "SHALL MIAMI'S CHARTER BE AMENDED AUTHORIZING CITY TO AMEND HYATT LEASE WITH HRM OWNER LLC, INCLUDING KNIGHT CENTER PROPERTY, EXTENDING TO 99 YEARS, WAIVING BIDDING, AND REQUIRING, AT NO COST TO CITY: • PUBLIC RIVER -FRONT GREEN SPACE; • NEW HYATT HOTEL, ADDITIONAL PARKING, CONVENTION SPACE, AND APARTMENTS; • INCREASED ANNUAL RENT TO CITY FROM $250,000 TO MINIMUM $2,500,000 OR 2.5% OF GROSS REVENUES, WHICHEVER GREATER; • MINIMUM $25,000,000 AFFORDABLE HOUSING CONTRIBUTION; • EXPANDED PUBLIC RIVERWALK?" This Charter Amendment will amend Section 29-B of the Miami Charter to authorize the City Commission by a four -fifths (4/5ths) affirmative vote, to waive competitive bidding and execute an amended and restated lease with HRM Owner LLC, to grant HRM Owner LLC a term not to exceed ninety-nine (99) years, to include the adjacent James L. Knight Center property, providing for fair market value rent including the greater of participation rent of 2.5% of gross revenues and increased annual rent from $250,000.00 to $2,500,000.00, and also requiring that the tenant redevelop the property and include a 615-key hotel,188,000 sf convention/meeting space, 682 apartments, parking, a $25,000,000.00 affordable housing contribution to the City, additional public green space and an expanded Riverwalk at its sole expense and at no cost to the City. By order of the Commission of the City of Miami, Florida. Section 6. The official ballot to be used at said Referendum Special Election shall be in full compliance with the laws of the State with respect to vote -by -mail ballots and to the use of the mechanical voting machines or the Computer Election System, and shall be in substantially the following form: "Official Ballot" Referendum Special Election Tuesday, November 8, 2022 for Approval or Disapproval of the following question: Lease Extension to Redevelop Existing Hyatt Hotel and Knight Center at 400 SE 2"d Avenue "Shall Miami's Charter be amended authorizing City to amend Hyatt Lease with HRM Owner LLC, including Knight Center property, extending to 99 years, waiving bidding, and requiring, at no cost to city: • Public river -front green space; • New Hyatt hotel, additional parking, convention space, and apartments; • Increased annual rent to City from $250,000 to minimum $2,500,000 or 2.5% of gross revenues, whichever greater; • Minimum $25,000,000 affordable housing contribution; • Expanded public riverwalk?" YES NO Section 7. The form of the ballot shall be in accordance with requirements of general election laws. Electors desiring to vote in approval of the Question described above shall be instructed to vote their selection next to the word "YES" within the ballot containing the statement relating to the Question. Electors desiring to vote to disapprove the Question shall be instructed to vote their selection next to the word "NO" within the ballot containing the statement relating to the Question. Section 8. The City Clerk shall cause to be prepared vote -by -mail ballots containing the Question set forth in Section 6 above for the use of vote -by -mail electors entitled to cast such ballots in said Referendum Special Election. Section 9. All qualified electors of the City shall be permitted to vote in said Referendum Special Election and the Supervisor of Elections of Miami -Dade County, Florida, is hereby requested, authorized, and directed to furnish, at the cost and expense of the City, a list of all qualified electors residing in the City as shown by the registration books and records of the Office of said Supervisor of Elections and duly certify the same for delivery to and for use by the election officials designated to serve at the respective polling places in said Referendum Special Election precincts. Section 10. For the purpose of enabling persons to register who are qualified to vote in said Referendum Special Election on Tuesday, November 8, 2022, and who have not registered under the provisions of the general laws of the State and Chapter 16 of the Code of the City of Miami, Florida, or who have transferred their legal residence from one voting precinct to another in the City, they may register Monday through Friday, from 8:00 A.M. to 5:00 P.M. at the Miami - Dade County Elections Department located at 2700 Northwest 87th Avenue, Miami, Florida, within such period of time as may be designated by the Supervisor. In addition to the above place and times, qualified persons may register at such branch offices and may also register to vote online for the purpose of voting in the herein described Referendum Special Election during such times and on such dates as may be designated by the Supervisor. Section 11. Todd B. Hannon, the City Clerk of the City of Miami, Florida, or his duly appointed successor, is hereby designated and appointed as the official representative of the Commission of the City of Miami, Florida, in all transactions with the Supervisor related to matters pertaining to the use of the registration books and the holding of said Referendum Special Election. Section 12. The City Clerk shall deliver a certified copy of this Resolution to the Supervisor not less than forty-five (45) days prior to the date of the Referendum Special Election. Section 13. The City Manager is authorized and directed to negotiate the Lease, in and in strict accordance with the terms of the ballot language approved by this Resolution, and use good faith efforts to bring such Lease for consideration and 4/5ths approval by the City Commission at the December 8, 2022 meeting of the City Commission, subject to approval by the electorate on November 8, 2022. Section 14. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.3 APPROVED AS TO FORM AND CORRECTNESS: Z The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 3 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.