Loading...
HomeMy WebLinkAboutCC 2023-06-12 MinutesCity of Miami City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Meeting Minutes Monday, June 12, 2023 2:00 PM Special Meeting City Hall City Commission Francis X. Suarez, Mayor Christine King, Chair, District Five Joe Carollo, Vice Chair, District Three Alex Diaz de la Portilla, Commissioner, District One Sabina Covo, Commissioner, District Two Manolo Reyes, Commissioner, District Four Arthur Noriega, V, City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk City Commission Meeting Minutes June 12, 2023 2:00 PM INVOCATION AND PLEDGE OF ALLEGIANCE Present: Chairwoman King, Commissioner Covo and Commissioner Reyes Absent: Vice Chair Carollo and Commissioner Diaz de la Portilla On the 12th day of June 2023, the City Commission of the City of Miami, Florida, met at its regular meeting place in City Hall, 3500 Pan American Drive, Miami, Florida, in special session. The Commission Meeting was called to order by Chairwoman King at 2:25 p.m., recessed at 3:05 p.m., reconvened at 3:42 p.m., and adjourned at 3:42 p.m. ALSO PRESENT: Larry Spring, Chief Financial Officer/Assistant City Manager Victoria Mendez, City Attorney Todd B. Hannon, City Clerk ORDER OF THE DAY Chair King: Good afternoon, again, everyone. It seems as if I have a quorum now and we 're going to begin. And as I like to do and 1 have set the meetings, we're going to have -- we're going to open our meeting with prayer. I have Pastor Hunter Ulrich from the Historic Mount Zion Missionary Baptist Church Overtown that will lead us in prayer today. Thank you for coming. Invocation delivered. Chair King: Thank you so much. And at this time, I'll have Commissioner Reyes lead us in the pledge of allegiance. Pledge of allegiance delivered. Chair King: Thank you. Chair King: I believe our City Attorney has a statement that must be read into the record before we begin. Madam City Attorney. Victoria Mendez (City Attorney): Thank you, Madam Chair. Detailed information about the processes, order of business, rules of procedure, scheduling or rescheduling of City Commission meetings can be found in Chapter 2, Article 2 of the City Code, a copy of which is available online at www.municode.com. Any person who is a lobbyist pursuant to Chapter 2, Article 6 of the City Code must register with the City Clerk and comply with related City requirements for lobbyists before appearing before City Commission. A person may not lobby a city official, board member, or staff member until registering. A copy of the code section about lobbyists is available in the City Clerk's Office and online at www.municode.com. Any person making a presentation, formal request or petition to the City Commission concerning real property must make the disclosures required by the City Code in writing. A copy of this Code section is available at the Office of the City Clerk or online at www.municode.com. The City of Miami requires that anyone requesting action by the City Commission must disclose before the hearing any consideration provided or committed to anyone for agreement to support or withhold objection to the requested action pursuant to City Code Section 2-8. In accordance with Section 2-33(f) and (g) of the City Code, the agenda and material for each item on the agenda is available City of Miami Page 1 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 during business hours at the City Clerk's Office and online 24 hours a day at www.miamigov.com. Any person may be heard by the City Commission through the Chair for not more than two minutes on the proposition before the City Commission unless modified by the Chair. Public comment will begin at approximately 2:30 and remain open until public comment is closed by the chair. Members of the public wishing to address the body may do so by submitting written comments via online comment form. Please visit www.miamigov.com/meetinginstructions for detailed instructions on how to provide public comment using the online public comment form. The comments submitted through the comment form have been and will be distributed to elected officials, their staff and City Administration throughout the day so that the elected officials may consider the comments prior to taking any action. Additionally, the online comment form will remain open during the meeting to accept comments and distribute to the elected officials, their staff and the City Administration up until the chair closes public comment. Public comment may also be provided live at City Hall located at 3500 Pan America Drive, Miami, Florida, subject to any and all City rules as may be amended. If the proposition is being continued or rescheduled, the opportunity to be heard may be at such later date before the City Commission takes action on such proposition. When addressing the City Commission, the member of the public must first state their name, their address, and what item will be spoken about. Any person with a disability requiring assistance, auxiliary aids, and services for this meeting may notes the City Clerk. The City has provided different public comment methods to indicate, among other things, the public's support, opposition, or neutrality on the items and topics to be discussed at the City Commission meeting in compliance with Section 286.0114(4)(c), Florida Statutes. The public has been given the opportunity to provide public comment during the meeting and within reasonable proximity and time before the meeting. Please note Commissioners have generally been briefed by City staff and the City Attorney's Office on items on the agenda today. Anyone wishing a verbatim record of the item considered at this meeting may request it at the Office of Communications or view it online at www.miamigov.com. Please silence all cell phones and other noise making devices. This meeting can be viewed live on Miami TV, the City's Facebook page, the City's Twitter page, the City's YouTube channel, the Comcast Channel 77. The broadcast will also have closed captioning. Thank you. Chair King: Thank you, Madam City Attorney. At this time, I believe we're going to open the floor for public comment. We don't need the City Clerk to read anything into the record today because we don 't have anyone giving testimony, right? Okay. PUBLIC COMMENTS FOR "SP" ITEM(S) Chair King: So, if there's anyone here that would like to speak on the issue that is before us today, you may come to each of the podiums. LeFrance Phillippe: Good afternoon. Chair King: Good afternoon. Mr. Phillippe: Okay. My name is LeFrance Phillippe. My address is 760 Northwest 132nd -- Chair King: LeFrance, can you lean into the mic, please? Mr. Phillippe: My name is LeFrance Phillippe. My address is 1 -- 760 Northwest 132nd Street, North Miami, Florida 33168. I work at the Hyatt Hotel for 42 years. I City of Miami Page 2 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 am a food runner at the restaurant at the -- in the hotel. I have had the pleasure of working in the hospitality industry all my life. Now it's time for me to retire. I am here with my union today because we were able to negotiate a great severance package for me and my coworkers. This redevelopment will allow all the workers like myself to finally retire and give my youngest coworkers recall right to the -- have the opportunity to keep building their careers once the hotel reopens. I urge you all to support us workers and this redevelopment. Thank you. And also, I have something to say about the Hyatt family. And I started work for Hyatt at the age of 20. I'm about to be 62. And the Hyatt family is a great foundation. And for me, the first job in America, and Hyatt, make it to the land of opportunity, and I think Hyatt is a land of opportunity for me. Hyatt was my life, part of my success with Hyatt. I met so many -- I did so many good things at the Hyatt. And the Hyatt is a good place to work for, and they let people grow. They give you trust. If you want to grow, if you want to stay where you want to be, where you at, no problem. And I have a lot of good things that I find at the Hyatt, not only work, and I met a beautiful wife that have a son for me. And my life has begun at the Hyatt Regency Miami. And the lady have a first son for me. And please do support that because we are not beautiful ladies in the block right now. Back then we were. And I think rebuilding Hyatt, it's going to be very important for the City of Miami, for all of us, for the future, for the environment, because I like what I've seen, the building that I see online, it 's going to look beautiful. So, thank you all, support us. Chair King: Thank you. Mr. Phillippe: Thank you. Bye. Applause. Chair King: That was very heartfelt. Thank you. Abby Ape: Hi, good afternoon -- Chair King: Good afternoon. Ms. Ape: -- distinguished Commissioners. My name is Abby Ape. I am a resident of District 2, residing at 400 Northeast 18th Street in the District 2. I support SP.2 to waive the competitive bidding process and to execute the lease agreement for the Hyatt redevelopment project. I think it's the will of the people who voted on this in November. I think it 's going to be a much needed enhancement to our neighborhood. If you're ever in the area, you see the traffic flow is a little chaotic, and so the improvements that come with the Hyatt redevelopment project are very much welcomed, as well as the public private use of the park that's to come. I think overall the project is going to be a huge enhancement for the community, as well as it 's going to increase the revenue and all the things that we're going to see in the downtown Miami area. And for that reason, I support the project. I may also add that over the past few years, we've worked with the owners of this project. They've took -- they 've taken public input. They've sought out input of the community, unlike other developers. They -- I feel like they should -- they have the standard of what it is to seek out public input before moving forward with the project. So, I commend them for their efforts. And I think that they should be an example for all other future developers that work within the City of Miami and our neighborhoods. Thank you. Chair King: Thank you. Applause. City of Miami Page 3 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 Wendi Walsh: Hi, good afternoon, Chair, Commissioners. It's nice to see you all. My name is Wendi Walsh, 871 Northwest 167th Street, Miami, 33169. I'm the principal officer for Unite Here Local 355. We're the Hospitality Workers Union. We represent nearly 200 workers at the Hyatt Regency, and we are here to speak in support of this item today. As you heard from LeFrance and you'll hear from another worker after me, several of these workers have been there for decades and have made a career out of this job. Many have worked 20, 30 and even over 40 years at the hotel. We are happy to say that we've successfully negotiated an agreement with the company regarding the layoff of the workers when this hotel does get demolished and redeveloped. We had three goals. One is to make sure that the existing workers would have the opportunity to return to work with their full seniority when the new hotel gets built, and we did achieve that. Second, for those who choose to move on to a new career or to a much -deserved retirement, that they would have a severance package to make that possible, and we have achieved that as well for the workers, and they'll have the choice of which of those two options to take. And then third, we want to be able to help those workers who move on to another job to have the training necessary to do so as well as to train the future employees of this hotel. And as many of you know as you sit on the board for the Overtown/Park West CRA (Community Redevelopment Agency), we run a hospitality workers training center in Overtown called HEAT, the Hospitality Employees Advancement and Training Center. It's a mouthful. And the company has agreed to make contributions to that entity even after the hotel closes so that when it reopens, we will have the opportunity to train workers who are ready to go to work there on day one. So, for those reasons, we stand in support today. Thank you. Applause. Chair King: Thank you. As a former board member of the HEAT program, I'm in total support of that. I believe in the program that they have, and it trains employees and they get hired in the hospitality industry with great salaries. So, I'm proud to hear that this project is also in support of that. Good morn -- good afternoon. Evangeline Rolle: Good afternoon. Applause. Ms. Rolle: Good afternoon. My name is Evangeline Rolle. Good afternoon. My name is Evangeline Rolle, and my address is 560 Northwest 7th Street, Miami, Florida, 33136. I work at the Hyatt Regency, and I work in housekeeping. I've been working there for 40 years now. And I would like to support each and every one of my coworkers. My goal is to retire from the Hyatt with my severance package that they offered me. And the union did a great job with us, supporting us and everything. And I'm here to support the other rest of the employees that work along with me. Thank you. Chair King: Thank you. Applause. Chair King: You guys are going to get me in so much trouble because you know we're not supposed to clap. And when I have a regular Commission meeting, they're going to be like, oh, you made special allowance for them. You didn't say anything. But that's okay. I can take the heat. I can take the heat. Good afternoon. Rammel Guzman: Good afternoon. My name is Rammel Guzman, 1818 Southwest 1st Avenue. I'm sorry I'm a little bit out of my voice today. Well, I prepared a couple of things to say in support of this Hyatt project, but all you need to know is that the City of Miami Page 4 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 union and the workers are hand -in -hand with the corporation. I mean, I think very few times we get to see this, which is fantastic, so virtual clap for that. So, hands down, this is the way to go. The people voted already for this. The only reason why it didn't start early is because the City of Miami owns the land, so we have to go through this, which is the process, and we have to respect it. But I'm going to read something that my friend, Abby, wrote. I cannot take credit for it, but it was fantastic. The neighborhood stands to gain several public benefits from this project, including the establishment of a public private park, enhanced connectivity under the bridge, improved traffic flow, and a dedicated space for community engagement. These enhancements will undoubtedly elevate the value of the urban core and foster stronger community connections. This is a no-brainer. So please do the right thing and let's move out of the way and let's let them do what they do best. Thank you. Chair King: Thank you. Good afternoon. James Torres: Good afternoon, Chairwoman, Commissioners, how are you today? Chair King: Good, thank you. Mr. Torres: James Torres, president of DNA (Downtown Neighborhood Alliance). I have a statement that I'd like to pass to Todd, and then if he can share with you. I'll summarize. Basically, the DNA 100 percent supports the project. As we all know, it was approved by the voters at a whopping 64 percent. Let that soak in for a second; 64% is an astonishing number. When you look at everything that's going on in our city, this particular project will add a huge benefit at no cost to taxpayers. Also let that soak in, which is a beautiful thing, right? Thank you to the developer, GenTech [sic], and the Hyatt as well. The other piece to this is that the downtown fully believes that this project far reaches the benefit of the entire downtown community. It's not just about downtown. In this case, it's an entire community, so that's important to know. Early on, over a year and a half ago, we had conversations with them, and we tried to include one piece that has not been talked about today, and hopefully, Sabina Covo or Manolo Reyes can talk about it as well because it does impact our district, which is the Fort Dallas piece. And I've talked about that a lot. And I think I saw your social media kind of having something that I reached out to you about that. I'm like, there's something here. So hopefully as you folks decide to move yes on this, that you include the Fort Dallas piece because it's an important instrumental for our City of Miami that should not be forgotten. And that's the important thing here because it does provide a huge development for the entire city of Miami and the communities. Thank you very much. Chair King: Thank you. At this time, seeing no other persons standing for public comment, I will close the public comment period and start the meeting with a presentation from the developer. City of Miami Page 5 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 SP.1 DISCUSSION ITEM 14111 Commissioners and Mayor A DISCUSSION ITEM FOR THE PURPOSE OF CONSIDERING AND TAKING ANY AND ALL ACTIONS RELATED TO THE AMENDED AND RESTATED GROUND LEASE AGREEMENT BETWEEN THE CITY OF MIAMI ("CITY") AND HRM OWNER LLC FOR CITY -OWNED 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. RESULT: DISCUSSED Chair King: Good afternoon. Please state your name for the record. Javier Avino: Good afternoon. Javier Avin6 with the law firm of Bilzen Sumberg, 1450 Brickell Avenue, here on behalf of the City's lessee, HRM Owner. I am joined by the joint venture of HRM, members of the Hyatt team, as well as members of the Gencom team, including Phil Keb, Peter Trujillo, Alan Mattis, Brad Miller, Carrie Dowd, among others, together with the design team who 's here as well from ARQ, Langan Traffic Engineering, our archaeologists, members of my team from Bilzen, colleagues, including Eric Singer, Elise Holtzman -Gerson, and Andres Rivero, as well as Iris Escarra from Greenberg Traurig. This -- first, I want to start by thanking you all for convening this special meeting. We appreciate you guys coming in on a non - regularly scheduled commission date to handle this very important matter. We're going to kick off by presenting a short video, and then after that, we'll -- I'll come back for some more remarks. I also want to thank specifically City Administration who has worked tirelessly and oftentimes aggressively to push for the best possible lease on behalf of the City, as well as the City Attorney's Office, who has also worked diligently on making sure that the lease meets all applicable city laws, regulations, et cetera. So, we want to thank your professional staff for their assistance to date. And we'll present a short video. Again, it 's short, and then I'll come back for some additional remarks. Audiovisual presentation made. Mr. Avino: Alright, so just by way of background, as you all know, Hyatt has been the longstanding operator for this site since 1982. The Commission approved the consent to the HRM joint venture, which includes Gencom, in October of 2021, facilitated by you all. And then in July of last year, the referendum language was approved and put forth before the voters. As you've heard from some of the speakers, it received a 64 percent support, which facilitated the path for the lease that is before you today. Just as a reminder, what that referendum included was an initial minimum program. It included a minimum rent of $2.5 million. The current rent is $250,000, so that's a 10x just on the minimum rent. It included a $25 million affordable housing contribution, and it included the expansion of the leased area to the James L. Knight Center which has reached its functional lifespan and is costing the City meaningful dollars to maintain and operate. And so let 's go through some of the main lease key points. The current -- the proposed lease is a new 99-year single -term lease. Our current lease has a 45-year lease extension option. Again, there's a minimum of $2.5 million in rent to the City, but the actual number based on participation rent is anticipated at $6 million. And again, the current minimum rent is $250,000. The minimum rent is also adjusted based on a schedule, so that will go up over time. The City of Miami Page 6 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 initial minimum development was to include 615 hotel rooms, 682 apartments, 188,000 square feet of meeting space, which as the video indicated is 60,000 square feet more meeting space than is currently present between both the James L. Knight and Hyatt -- existing Hyatt meeting spaces. The tax revenues are to increase -- this is the City's portion of the tax revenues -- are to increase to approximately $8.5 million per year. The current taxes are about $600,000. Remember the James L. Knight Center, since it's City owned and operated, is not on the tax roll, so it does not generate a tax revenue. It's just the Hyatt Hotel itself. There are proposed community benefits in excess of $78 million, which include the $25 million proffer from the referendum for affordable housing. I'll go through in detail the community benefits in a moment. The lease also includes, important to note, critical project milestones and dates. They're embedded in the lease, and they're subject to penalties for us staying on track with our proposed development of the property. There are permit and impact fees that are approximately $40 million in total. So there's about $7 million that go into permit fees for this project and the balance is in impact fees, which include a number of impact fees generated to the city of police, fire, et cetera, as well as road impact fees. As was indicated, the project -- the actual conceptual plan for the project includes three towers. There's one hotel tower with 615 traditional hotel rooms. There are the shared service apartments as well as 1,500 residential units. Important to note, there are 1,000, almost 1,100 parking spaces, 1,096 currently proposed on site. I mean, I note that and it's important to note because there are currently no parking spaces on site, which is part of the current operation to rely on off -site parking in the downtown area as well as public transportation in order to accommodate the operations. So, there will be 1,100 parking spaces on site. The design has been also contemplated to redesign the traffic flow and also allow for a substantial amount of queuing on site. So, there is a very, very large rotunda in the middle -- and we can go into that in more detail ifyou'd like -- that provides for the ability to queue a substantial amount of cars, taking them off the road, as well as the traffic circulation that Langan has developed and consulted with the City's Public Works Department on at least initially. We believe that that will alleviate a great deal of issues that are currently part of the operations of the existing facility. Job creation, just to touch on that for a moment before we go into community benefits, as the video indicated, we're going to go from approximately, we estimate from 350 permanent jobs to 900 permanent jobs. There's also an anticipated 45 -- over 4,500 construction jobs, about 1,100 jobs per year that will be created as a result of this redevelopment. With respect to the community benefits, as I mentioned in the beginning, we're at $78 million approximately. There are some things that have no actual dollar value, so those are additional community benefits, but let me go through -- let me go through the list. So, you have the $25 million affordable housing contribution that the City can use and allocate. You have a dedication of 15 units on site at 60 percent AMI. They'll be interspersed within the multifamily building. That has about a $7.5 million value. And that is proposed to be restricted to veterans and seniors. There is a severance package for Hyatt Regency's Unite Here. That's about $3 million. There is a contribution of the existing FF&E (Furniture, Fixtures & Equipment) of the hotel to local charities. That's estimated at about $2.5 million. There is $15 million in investment in art in public places. There is a contribution of event space -- of meeting event space to the City of Miami for official use. It's up to 12 separate events per year for up to 200 people. That's at no cost to the City. There are estimated $10 million worth of off -site traffic improvements. So that's, as I mentioned, re-signalization of some of the intersections, as well as off -site traffic improvements. There's a 450-foot upgraded river walk that's proposed, and the increased open space. The open space is about an acre in size, so it's a significant space. That cost is about a $15 million cost. We have entered into a memorandum of understanding with the IBEW (International Brotherhood of Electrical Workers), which will ensure significant labor participation in the project. And so, there are -- those are the high-level community benefits. Again, the economic impact to the city not only includes the increased land rent, the pre-COVID five-year average existing is City of Miami Page 7 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 about $1.8 million. At stabilization, we're anticipating $6 million. Again, the taxes are about half a million dollars, $600,000. Currently, they'll be at $8.5 million afterwards as well. So, it 's a significant increase in revenue to the city as well as the over $78 million worth of community benefits. So, at this juncture, and there is one additional community benefit that we are happy to accommodate, which involves minority participation. Through the District 5 office, there was a discussion regarding minority participation within the ground floor food and beverage area, and we are more than happy to accommodate that and proffer that 20 percent of those F&B (Food & Beverage), you know, area will be for minority participation. And I think there's some specific language that we can certainly discuss and entertain. With that, I will -- oh, I think Ms. Jones is going to -- Chair King: Yes, the Attorney's Office will read the language -- Mr. Avino: Perfect. Chair King: -- for the record. Isiaa Jones (Assistant City Attorney): For the record, Schedule 5.16, Community Benefits of the Agreement, shall be updated, Part B, the very last paragraph. Developer and City shall collaboratively prepare a minority participation plan for identfing and selecting operators on the ground level food hall. After completion of the minimum initial program, developers shall coordinate with local resources such as the Southeast Overtown Park West CRA (Community Redevelopment Agency) and other such organizations that support and encourage minority businesses to comply with the plan with a participation goal of no less than 20 percent of the restaurant and service operators being minority residents and/or minority -owned businesses within the City of Miami. And also, part A of the Community Benefits Program shall be amended. The set aside for 15 multifamily units shall be set aside for seniors and veterans. We wanted to make that clarification on the record. Mr. Avino: Correct, it currently -- there was a clerical mistake on there. It meant -- it's meant to say seniors and veterans. So, with that, we are happy to discuss any items on the lease. We -- (COMMENTS MADE OFF THE RECORD) Chair King: Oh, why not today? Because typically my order is I go to my vice chair, then I go in numerical order, but today I wanted to go to Commissioner Reyes, then Commissioner Covo, then Commissioner DLP (Diaz de la Portilla), and you have nothing today? Commissioner Reyes: Well, let me tell you, all of us, we have been briefed ad nauseam, you see. And every question we had, we already expressed it. And every suggestions that we made had been addressed. I think that we shouldn't be wasting their time, our time, you see, grandstanding or trying to look smart by asking questions that have been answered before, you see. Chair King: Well, that is true, and I do believe in that. I would like to make one -- one addition. We talked about having a kiosk in addition to the 20 percent of the minority participation and it was supposed to be for businesses and/or persons who reside in District 5, because I want to make sure that it is minority participation. So, I'd like to amend the record to reflect that and to include the kiosk. Commissioner Reyes: Madam Chair, I'm sorry, but minorities are not the only ones that reside in (UNINTELLIGIBLE). City of Miami Page 8 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 Chair King: I understand that, but yeah. Commissioner Reyes: Okay. Chair King: Commissioner Covo? Commissioner Covo: Since I was briefed, but not that extensively, because of the short period of time, I just want to ask if the $25 million in affordable housing is going to be split equally within our districts. Commissioner Reyes: That -- I asked that question before, and what the answer was that it was going to be offered and it's going to be received by the City of Miami, and whatever -- whichever way it is going to be distributed, it's up to us. Commissioner Covo: Could it be equally between the districts? Commissioner Reyes: That could be it, or we can have also, if we consider and we are advised by financial experts, we might use it as leverage, whatever is better. Larry Spring: Yeah, for the record, Larry Spring, Chief Financial Officer. The means by which you decide -- policy decide is up to you. We were negotiating with them, again, a global contribution. That contribution was specified for affordable housing. You guys can decide to add that to the $100 million pot that we already have a process in place to leverage. You can split it. You can -- Commissioner Reyes: It is for us to decide. Mr. Spring: -- give it all to the chairwoman. You can do a lot of things. Commissioner Reyes: That's what -- Chair King: And we don 't have to decide today. Mr. Spring: You don 't have to. Commissioner Reyes: No, no, no. Chair King: That's -- Mr. Spring: Correct. Chair King: I just wanted to make that clear -- Commissioner Reyes: The only -- Chair King: -- for the record. Commissioner Reyes: -- the only thing that we have to make sure today is that we receive -- Chair King: Yes. Commissioner Reyes: -- the $25 million. Chair King: Right. And this -- Mr. Avino: It is in multiple places in the lease, Commissioner, yes, absolutely. City of Miami Page 9 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 Commissioner Reyes: Okay. Chair King: This -- we don't have the requisite number of commissioners to vote on this item -- Mr. Avino: I know. Chair King: -- as of this moment because it requires a four -fifths vote. So, we'll take a ten-minute recess. Commissioner Reyes: Well, I wish that we get the full commission. Was -- Commissioner Diaz de la Portilla was the one that asked for this special meeting. And I know he'11 be here in a few minutes probably. Okay. Chair King: So, I will have the City Clerk advise us when we have the requisite number of commissioners to take the vote because we cannot with the three of us. It requires a four -fifths vote. So, we're going to be in recess for the next ten minutes. Thank you. [Later...] Chair King: Afternoon, everyone. I just wanted to give you an update. One of my colleagues has requested additional time, and it looks like that we won't come back before another hour. I'm sorry. Another hour. I just wanted to let you know because I said 10 minutes, but I'm sorry. And I don't really have control over that because I need the other person to come for the four -fifths vote. So, I don 't know if you all want to stay or if you want to leave. Okay, thank you. [Later...] Chair King: -- make an announcement that this meeting has to recess. I lost Commissioner Reyes. He has another commitment. We didn't expect to be here so long and as a result, there's not a way for me to have a four -fifths vote because there are only three commissioners now. So, having said that, I have to conclude this meeting and reschedule it for another time. You will be notified with the date for the next meeting. City of Miami Page 10 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 SP.2 RESOLUTION 13923 Department of Real Estate and Asset Management ADJOURNMENT A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, PURSUANT TO SECTION 29-B OF THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, WAIVING COMPETITIVE BIDDING AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AMENDED AND RESTATED GROUND LEASE WITH HRM OWNER LLC, THE EXISTING TENANT ("TENANT"), TO PROVIDE FOR A NEW TERM NOT TO EXCEED NINETY-NINE (99) YEARS, TO INCLUDE THE EXISTING HYATT HOTEL AND ALSO THE JAMES L. KNIGHT CONVENTION CENTER PROPERTY LOCATED 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 WITH ADDITIONAL TERMS AND CONDITIONS FURTHER DEFINED IN THE GROUND LEASE, ATTACHED AND INCORPORATED AS "EXHIBIT A"; PROVIDING FOR AN ANNUAL RENT SCHEDULE, IN AN AMOUNT OF ONE MILLION DOLLARS ($1,000,000) FOR THE 1ST YEAR, ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($1,250,000) FOR THE 2ND YEAR, ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) FOR THE 3RD YEAR, ONE MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($1,750,000) FOR THE 4TH YEAR, TWO MILLION DOLLARS ($2,000,000), FOR THE 5TH YEAR, ALL CONSTRUCTION RENT (CONSTRUCTION RENT") FOR THE PERIOD BEGINNING ON THE COMMENCEMENT DATE AND ENDING ON THE MINIMUM RENT COMMENCEMENT DATE ("CONSTRUCTION RENT PERIOD"), AFTER THE CONSTRUCTION RENT PERIOD, PAYMENT TO THE CITY AN AMOUNT EQUAL TO THE GREATER OF MINIMUM ANNUAL BASE RENT OF TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000.00) OR PARTICIPATION RENT EQUAL TO 2.5% OF GROSS REVENUES ("MINIMUM RENT") AS OF THE MINIMUM RENT COMMENCEMENT DATE, SUBJECT TO ANNUAL INCREASES AND ADJUSTMENTS THEREAFTER AS OUTLINED IN THE TERM SHEET; FURTHER PROVIDING THAT TENANT SHALL MAKE A TWENTY FIVE MILLION DOLLAR ($25,000,000.00) PAYMENT TO THE CITY FOR AFFORDABLE HOUSING; ALL AGREEMENTS 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 GROUND LEASE, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY. I -RESULT: DISCUSSED Note for the Record: For minutes referencing Item Number SP.2, please see Item Number SP.1. The meeting adjourned at 3:42 p.m. City of Miami Page 11 Printed on 08/24/2023 City Commission Meeting Minutes June 12, 2023 City of Miami Page 12 Printed on 08/24/2023