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HomeMy WebLinkAboutResolutionCity of Miami Resolution Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 3967 TO BE WITHDRAWN Final Action Date: 7/12/2018 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), APPROVING, SETTING FORTH, AND SUBMITTING TO THE ELECTORATE A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"); AMENDING 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 AN AMENDED AND RESTATED LEASE WITH HYATT EQUITIES, LLC, TO EXTEND THE CURRENT LEASE TERM TO A TOTAL OF NINETY-NINE (99) YEARS, TO EXPAND THE LEASED PREMISES TO INCLUDE THE LAND UPON WHICH THE CONVENTION CENTER IS LOCATED, AND AMENDING THE PARKING AGREEMENT, WITH AN ANNUAL BASE RENT PAYABLE TO THE CITY OF MIAMI ("CITY") OF AT LEAST TWO MILLION DOLLARS ($2,000,000.00), PLUS ADDITIONAL PROFIT PARTICIPATION RENT FOR OTHER USES, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS, TO BE REDEVELOPED PURSUANT TO A COMPREHENSIVE REDEVELOPMENT MASTER PLAN, INCORPORATING THE JAMES L. KNIGHT CONVENTION CENTER LAND, REQUIRING CITY COMMISSION APPROVAL; CALLING FOR A SPECIAL ELECTION TO BE HELD ON AUGUST 28, 2018; 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 45 DAYS PRIOR TO THE DATE OF SUCH SPECIAL ELECTION; PROVIDING AN IMMEDIATE EFFECTIVE DATE FOR THIS RESOLUTION. WHEREAS, the City of Miami ("City") is the owner of the James L. Knight Convention Center, located at 400 S.E. 2nd Avenue, Miami, Florida 33131 ("Convention Center"); and WHEREAS, the City is also the owner and landlord of the land upon which the hotel structure known as the Hyatt Regency Miami ("Hotel") is located and leased by Hyatt Equities, LLC ("Hyatt"); and WHEREAS, per the Lease Agreement originally dated September 13, 1979, as supplemented and amended ("Lease"), Hyatt currently leases the Hotel; and WHEREAS, the City and Hyatt desire to enter into an amended and restated lease ("New Lease"), which will extend the lease term to a total of ninety-nine (99) years from execution, expand the leased premises to include the land upon which the Convention Center is located, amend the parking agreement, and require Hyatt to redevelop the site according to the terms specified in the attached non -binding Memorandum of Understanding ("MOU"); and City of Miami Page 1 of 7 File ID: 3967 (Revision: A) Printed On: 2/11/2025 File ID: 3967 Enactment Number: WHEREAS, pursuant to Resolution No. 17-0261, adopted on May 25, 2017, the City Commission approved a Reconciliation Agreement to settle the existing claims and controversies with Hyatt, as further specified therein; and WHEREAS, the City Commission has determined that the New Lease, as preliminarily contemplated by the MOU, will be in the City's best interest; and WHEREAS, pursuant to Resolution No. , adopted on Attorney was directed to draft the ballot language contained herein; , the City 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 fully set forth in this Section. Section 2. In accordance with the provisions of Section 29-B of the Charter of the City of Miami, as amended ("Charter"), and §6.03 of the Miami -Dade County Home Rule Charter, a Special Election is being called and directed in the City of Miami, Florida, from 7:00 A.M. until 7:00 P.M., on Tuesday, August 28, 2018, including for the purpose of submitting to the qualified electors of the City for their approval or disapproval the proposed Charter AmendmenT. 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 (1/4) 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 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 2 of 7 File ID: 3967 (Revision: A) Printed on: 2/11/2025 File ID: 3967 Enactment Number: 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 referendum 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 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 City of Miami Page 3 of 7 File ID: 3967 (Revision: A) Printed on: 2/11/2025 File ID: 3967 Enactment Number: 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. () waive competitive bidding and execute an amended and restated lease with Hyatt Equities, LLC, to extend the current lease term to a total of ninety-nine (99) years from execution, and to expand the leased premises to include the land upon which the Convention Center is located, and amend the parking agreement, with an annual base rent payable to the City of Miami of at least two million dollars ($2,000,000.00), plus additional profit participation rent for other uses, with restrictions, reversions, and retention by the city of all other rights, to be redeveloped pursuant to a comprehensive redevelopment master plan incorporating the James L. Knight Convention Center land and requiring City Commission approval. 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 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 City of Miami Page 4 of 7 File ID: 3967 (Revision: A) Printed on: 2/11/2025 File ID: 3967 Enactment Number: Precinct Election Clerks and Inspectors to serve at said polling places on said 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 Special Election precincts wholly or partly within the City and which the City is adopting and desires to use for holding such 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 (2017), regarding any Special Election not otherwise provided for, there shall be at least thirty (30) days' notice of the 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 (5th) week and once in the third (3rd) week prior to the week in which the aforesaid 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 SPECIAL ELECTION TO AMEND THE MIAMI CITY CHARTER TO BE HELD ON TUESDAY, AUGUST 28, 2018 IN THE CITY OF MIAMI, FLORIDA PURSUANT TO RESOLUTION NO. A Special Election will be held on Tuesday, August 28, 2018, from 7:00 A.M. until 7:00 P.M. in the City of Miami, Florida at the polling places in the several 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 the City Charter be amended to extend City's Lease with Hyatt of approximately 4.2 acres of waterfront land at 400 S.E. 2nd Avenue, for additional 49 years (total 99 years) to include: • additional convention center land; • new hotel and mixed -use development; • new public Riverwalk and public amenities; and • Minimum guaranteed rent to City of $2,000,000 annually, plus percentage of gross profits from all other uses?" Charter Amendment No. _ will amend Section 29-B of the Miami Charter to authorize the City Commission by a four -fifths (4/5ths) affirmative vote, waive competitive bidding and execute an amended and restated lease with Hyatt Equities, LLC, to extend the current lease term to a total of ninety-nine (99) years, and to expand the leased premises to include the land upon which the Convention Center is located, and amend the parking agreement, with an annual base rent payable to the City of Miami of at least two million dollars ($2,000,000.00), plus additional percentage rent for other uses, with restrictions, reversions, and retention by the city of all other rights, to be redeveloped City of Miami Page 5 of 7 File ID: 3967 (Revision: A) Printed on: 2/11/2025 File ID: 3967 Enactment Number: pursuant to a comprehensive redevelopment master plan incorporating the James L. Knight Convention Center land requiring City Commission approval. By order of the Commission of the City of Miami, Florida. Section 6. The official ballot to be used at said 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" Special Election Tuesday, August 28, 2018 for Approval or Disapproval of the following question: Proposed lease of City -owned waterfront property on the Miami River "Shall the City Charter be amended to extend City's Lease with Hyatt of approximately 4.2 acres of waterfront land at 400 S.E. 2nd Avenue for additional 49 years (total 99 years) to include: • additional convention center land; • new hotel and mixed -use development; • new public Riverwalk and public amenities; and • Minimum guaranteed rent to City of $2,000,000 annually, plus percentage of gross profits from all other uses?" 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 Special Election. Section 9. All qualified electors of said City shall be permitted to vote in said 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 City of Miami Page 6 of 7 File ID: 3967 (Revision: A) Printed on: 2/11/2025 File ID: 3967 Enactment Number: 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 Special Election on Tuesday, August 28, 2018, 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 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 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 Special Election. Section 13. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 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 7 of 7 File ID: 3967 (Revision: A) Printed on: 2/11/2025