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HomeMy WebLinkAboutR-17-0351City of Miami Resolution R-17-0351 Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 2585 Final Action Date: 7/27/2017 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING, SETTING FORTH, AND SUBMITTING TO THE ELECTORATE A PROPOSED CHARTER AMENDMENT AMENDING THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CHARTER"); SPECIFICALLY BY AMENDING SECTION 29-B OF THE CHARTER, ENTITLED "CITY -OWNED PROPERTY SALE OR LEASE -GENERALLY", TO AUTHORIZE THE CITY COMMISSION ("COMMISSION") BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE TO WAIVE COMPETITIVE BIDDING AND TO EXECUTE A FIFTH AMENDMENT ("FIFTH AMENDMENT") TO THE LEASE AGREEMENT ("LEASE") BETWEEN THE CITY OF MIAMI ("CITY") AND ALIGNED BAYSHORE MARINA, LLC ("BAYSHORE MARINA"), ALSO KNOWN AS MONTY'S, FOR CITY -OWNED WATERFRONT PROPERTY LOCATED AT 2550 SOUTH BAYSHORE DRIVE, MIAMI, FLORIDA ("PROPERTY"), TO EXTEND THE CURRENT LEASE TERM BY AN ADDITIONAL TERM OF APPROXIMATELY THIRTY-TWO (32) YEARS (TO EXPIRE MAY 31, 2067), WITH TWO (2) ADDITIONAL TEN (10) YEAR OPTIONS TO RENEW, FOR A TOTAL TERM OF FIFTY TWO (52) YEARS (TO EXPIRE MAY 31, 2087); AN ADDITIONAL MINIMUM RENT PAYMENT OF TWO HUNDRED THOUSAND DOLLARS ($200,000.00) PER LEASE YEAR (A MINIMUM OF TEN MILLION DOLLARS [$10,000,000.00] OVER THE BASE TERM OF THE AMENDED LEASE) 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; THE CREATION OF A CAPITAL ACCOUNT REQUIRING A MINIMUM ADDITIONAL INVESTMENT IN THE PROPERTY OF FOUR MILLION DOLLARS ($4,000,000.00) OVER THE TOTAL 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; AND PURSUANT TO SECTION 29-B OF THE CHARTER, ENTITLED "CITY OWNED PROPERTY SALE OR LEASE -GENERALLY," AND SUBPART A, SECTION City of Miami Page 1 of 9 File ID: 2585 (Revision: A) Printed On: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 3(F)(III), ENTITLED "POWERS," TWO (2) INDEPENDENT APPRAISALS HAVING BEEN OBTAINED BY THE CITY AFFIRMING FAIR MARKET VALUE OF THE FIFTH AMENDMENT; ACKNOWLEDGING THE CITY'S SEPARATE AUTHORIZATION BY RESOLUTION NO. 17-0323, ADOPTED JULY 13, 2017, OF THE CITY'S RELATED MODIFICATION OF SUBMERGED LANDS LEASE AND WAIVER OF DEED RESTRICTIONS REQUIRED WITH THE STATE OF FLORIDA, BOARD OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND, AND OTHER RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS; CALLING FOR A REFERENDUM SPECIAL ELECTION AND PROVIDING THAT THE CHARTER AMENDMENT SHALL BE SUBMITTED TO THE ELECTORATE AT THE REFERENDUM SPECIAL ELECTION TO BE HELD CONCURRENTLY WITH THE GENERAL MUNICIPAL ELECTION ON NOVEMBER 7, 2017; DESIGNATING AND APPOINTING THE CITY CLERK ("CLERK") AS THE OFFICIAL REPRESENTATIVE OF THE COMMISSION WITH RESPECT TO THE USE OF VOTER REGISTRATION BOOKS AND RECORDS; FURTHER DIRECTING THE 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 REFERENDUM SPECIAL ELECTION; PROVIDING AN IMMEDIATE EFFECTIVE DATE FOR THIS RESOLUTION. WHEREAS, the City of Miami ("City") is the owner of the waterfront property located at 2550 South Bayshore Drive, Miami, Florida ("Property"); and WHEREAS, pursuant to the Lease Agreement originally dated September 20, 1985, as supplemented and amended ("Lease"), Aligned Bayshore Marina LLC ("Bayshore Marina") currently leases the Property, also known as Monty's, from the City; and WHEREAS, the City and Bayshore Marina desire to enter into a Fifth Amendment to the Lease which will 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); 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 fifty (50) years 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; further creating a capital account requiring a minimum additional investment in the Property of four million dollars ($4,000,000.00) over the total 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; and WHEREAS, pursuant Section 29-B of the Charter of the City of Miami, Florida ("Charter"), entitled "City Owned Property Sale or Lease -Generally", and Subpart A, Section City of Miami Page 2 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 3(f)(iii), entitled "Powers", the City has received two (2) independent appraisals affirming the fair market value of the Fifth Amendment; and WHEREAS, in a separate but related matter, (1) the City Commission on July 13, 2017, adopted Resolution No. 17-0323, authorizing the City Manager to negotiate and execute the required Modification of Submerged Lands Lease ("Submerged Lands Lease") and Waiver of Deed Restrictions ("State Waiver") with the State of Florida, Board of Trustees of the Internal Improvement Trust Fund ("State") for the submerged lands areas related to the Property ("Submerged Lands"), (2) the State has previously acknowledged Bayshore Marina's Lease with the City, Bayshore Marina's subleasing of the Submerged Lands, and improvements contemplated to be undertaken by Bayshore Marina on the Submerged Lands, and (3) once the City and the State have executed the Submerged Lands Lease and the State Waiver, the City and Bayshore Marina will execute the related sublease for the Submerged Lands with required restrictions, reversions, and retention by the City of all other rights; and WHEREAS, the City Commission has determined that the Fifth Amendment to the Lease is in the City's best interest; and WHEREAS, pursuant to Resolution No. 17-0322 adopted on July 13, 2017, the City Attorney was directed to draft proposed ballot language contained herein; 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 Section 29-B of the Charter and §6.03 of the Miami -Dade County Home Rule Charter, a Referendum Special Election to be held concurrently with the General Municipal Election is being called and directed in the City from 7:00 A.M. until 7:00 P.M. on Tuesday, November 7, 2017, including for the purpose of submitting to the qualified electors of the City for their approval or disapproval the proposed Charter Amendment for the Fifth Amendment to the Lease. Section 3. Section 29-B of the Charter is proposed to be amended in the following particulars:1 "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 1 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. City of Miami Page 3 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 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 ('/4) 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. 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 4/5tns 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 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: City of Miami Page 4 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 (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. City of Miami Page 5 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 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 No. 1 or as may be designated by the Supervisor of Elections of Miami - Dade County, Florida, 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 voter information cards, registration books, records, and certificates of the City. Section 5. In compliance with Section 100.342, Florida Statutes (2016), 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 of the City of Miami, Florida ("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 ON TUESDAY, NOVEMBER 7, 2017 IN THE CITY OF MIAMI, FLORIDA PURSUANT TO RESOLUTION NO. 17-0351 A Referendum Special Election will be held on Tuesday, November 7, 2017 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 Board of County Commissioners 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 to extend Aligned Bayshore Marina, LLC's ("Monty's") Lease, requiring Commission to waive competitive bidding, under these terms: • 32-year lease extension plus two 10-year options; City of Miami Page 6 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 • Monty's to pay the City $10,000,000.00 in additional rent or an additional 1.75% of gross revenues, whichever is greater, but no less than $1,500,000.00 per year beginning in 2019; and • Monty's contributes $7,500,000.00 in property improvements and a minimum of $4,000,000.00 for future improvements?" 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 the Fifth Amendment to the Lease with Aligned Bayshore Marina, LLC, also known as Monty's, for a thirty-two (32) years Lease extension plus two (2) ten (10) year renewal options for City waterfront property at 2550 South Bayshore Drive for the greater of additional minimum total rent of $10,000,000.00 or one and three quarters percent (1.75%) of gross revenues, whichever is greater, but no less than $1,500,000.00 per year beginning 2019; $7,500,000.00 of capital improvements; a minimum $4,000,000.00 capital account over the total term; and transfer and refinancing fees. 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 7, 2017 for Approval or Disapproval of the following question: Proposed Charter Amendment allowing Aligned Bayshore (Monty's) a Lease extension providing additional rent and investments. Shall Miami's Charter be amended to extend Aligned Bayshore Marina, LLC's ("Monty's") Lease, requiring Commission to waive competitive bidding, under these terms: • 32-year lease extension plus two 10- year options; • Monty's to pay the City $10,000,000.00 in additional rent or an additional 1.75% of gross revenues, whichever is greater, but no less than $1,500,000.00 per year beginning in 2019; and • Monty's contributes $7,500,000.00 in property improvements and a minimum City of Miami Page 7 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 of $4,000,000.00 for future improvements? 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. Once individuals are satisfied with their choice, they shall press the "Vote" button and the ballot shall be cast. Section 8. The 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 said 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 general election precincts. Section 10. For the purpose of enabling persons to register who are qualified to vote in said Referendum Special Election to be held concurrently with the General Municipal Election on Tuesday, November 7, 2017 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, Doral, Florida within such period of time as may be designated by the Supervisor of Elections of Miami -Dade County, Florida. In addition to the above place and times, qualified persons may register at such branch offices and may also use any mobile registration van for the purpose of registration in order to vote in the herein described Referendum Special Election during such times and on such dates as may be designated by the Supervisor of Elections of Miami -Dade County, Florida. Section 11. Todd B. Hannon, the Clerk, or his duly appointed successor, is hereby designated and appointed as the official representative of the City Commission in all transactions with the Supervisor of Elections of Miami -Dade County, Florida related to matters pertaining to the use of the registration books and the holding of said Referendum Special Election. Section 12. The Clerk shall deliver a certified copy of this Resolution to the Supervisor of Elections of Miami -Dade County, Florida not less than forty-five (45) days prior to the date of the Referendum Special Election. City of Miami Page 8 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025 File ID: 2585 Enactment Number: R-17-0351 Section 13. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: ndez, ity ttor ey ) 9/20/2017 2 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 9 of 9 File ID: 2585 (Revision: A) Printed on: 3/24/2025