HomeMy WebLinkAboutR-22-0263City of Miami
Resolution R-22-0263
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Legislation
File Number: 12026
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 DIRECTING THE CITY
ATTORNEY TO PREPARE A PROPOSED AMENDMENT TO THE CHARTER
OF THE CITY OF MIAMI, FLORIDA ("CHARTER") FOR CONSIDERATION AT
THE SPECIAL ELECTION SCHEDULED FOR NOVEMBER 8, 2022,
PROPOSING, UPON APPROVAL OF THE ELECTORATE, TO AMEND
SECTION 29-B OF THE 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 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 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 TO $2,500,000 ANNUALLY,
AND FURTHER PROVIDING THAT TENANT SHALL MAKE A $25,000,000
CONTRIBUTION TO AFFORDABLE HOUSING, WITH RESTRICTIONS,
REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER EXISTING
CITY RIGHTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY.
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
City of Miami Page 1 of 3 File ID: 12026 (Revision: C) Printed On: 81912022
File ID: 12026 Enactment Number: R-22-0263
WHEREAS, the Original Lease has a remaining term, including renewals, of
approximately fifty (50) years, and would require 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 open space and an expanded Riverwalk ("Lease"); and
WHEREAS, the Tenant shall additionally make a one-time payment equal to twenty-five
million ($25,000,000.00) to Affordable Housing to the City; and
WHEREAS, the Tenant shall also make a four hundred thousand dollars ($400,000.00)
contribution to the City for Traffic Engineering Study with the remainder if any to be applied
towards affordable housing; 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. The City Attorney is directed to prepare a proposed amendment to the
Charter of the City of Miami, Florida, as amended ("Charter"), for consideration at the Special
Election scheduled for November 8, 2022 proposing, upon approval of the electorate, to amend
Section 29-B of the 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 the Lease for the Property, and further
providing that Tenant shall make a $25,000,000.00 contribution to Affordable Housing, and
further providing that Tenant make a $400,000.00 contribution to the City for Traffic Engineering
with the remainder of funds if any to be applied towards affordable housing, all with restrictions,
reversions, and retention by the City of all other existing City rights, all in a form acceptable to
the City Attorney.
Section 3. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.'
1 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.
City of Miami Page 2 of 3 File ID: 12026 (Revision: C) Printed on: 8/9/2022
File ID: 12026
Enactment Number: R-22-0263
APPROVED AS TO FORM AND CORRECTNESS:
1
Vft6ria-Vrdel, City Attor iey 8/2/2022
City of Miami Page 3 of 3 File ID: 12026 (Revision: C) Printed on: 8/9/2022