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HomeMy WebLinkAboutAgenda Item Summary Form1IV OF Hw `93 AGENDA ITEM SUMMARY FORM File ID: #12026 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: Direct City Attorney - Hyatt Ballot Question Purpose of Item: 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, entitled "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 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"). 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 four hundred thousand dollars ($5,400,000) 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 NOT funded by Bonds Item is Related to Revenue Total Fiscal Impact: 0 Reviewed By Department of Real Estate and Asset Management Review Completed 07/18/2022 10:00 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 5:22 PM Budget Review Completed 07/18/2022 6:28 PM Assistant City Manager Review Completed 07/19/2022 8:48 AM City Manager Review Completed 07/19/2022 10:05 AM Legislative Division Review Completed 07/19/2022 10:11 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 ACA Review Completed 07/29/2022 5:14 PM Isiaa Jones ACA Review Completed Approved Form and Correctness with Modification(s) Completed Rendered Completed 08/02/2022 12:18 PM of .�f City of Miami CityHall * iM°nr °°°TE° * 11 °° Legislation 3500 Pan American Drive g Miami, FL 33133 Resolution www.miamigov.com Enactment Number: R-22-0263 File Number: 12026 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 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.' APPROVED AS TO FORM AND CORRECTNESS: 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.