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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #4449 Date: 06/29/2018 Commission Meeting Date: 07/18/2018 Requesting Department: City Manager's Office Sponsored By: District Impacted: District 1 Type: Resolution Subject: Direct City Attorney - Charter Amendment - Soccer Purpose of Item: A Resolution of the Miami City Commission directing the City Attorney to prepare an amendment to the Charter of the City of Miami, Florida, as amended ("Charter"), for consideration at the Referendum Special Election scheduled for November 6, 2018, 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 to negotiate and execute a Ground Lease and Master Development Agreement ("Lease") between the City of Miami ("City") and Miami Freedom Park, LLC ("MFP"), for approximately seventy-three (73) acres of City -owned property located generally at 1400 Northwest 37th Avenue, Miami Florida, 33125, and identified as folios 01-3132- 000-0080 and 01-3132-000-0090 ("Demised Property"), with an initial term of thirty-nine (39) years, with two (2) additional thirty (30) year options to renew, for a total term of ninety-nine (99) years, with an annual base rent equal to the greater of three million five hundred seventy-seven thousand three hundred sixty-five dollars ($3,577,365.00), or Fair Market Value as determined by two (2) State certified appraisers, in addition to any rent increases and/or additional rents negotiated by the parties, providing the Demised Property be used for a soccer stadium, technology hub, entertainment center including food and beverage venues, offices, retail, hotel and conference center, and other ancillary commercial development with a maximum height not to exceed Federal Aviation Administration Aerospace Obstruction Standards; and authorizing the creation of a Park Infrastructure Fund by the City that will receive a twenty million dollar ($20,000,000.00) contribution from MFP, payable in equal yearly installments of six hundred sixty-six thousand six hundred sixty seven dollars ($666,667.00) for a period of thirty (30) years, to defray the site development and other infrastructure -related costs for a public park of approximately fifty-eight (58) acres to be developed on property adjacent to the demised property, with restrictions, reversions, and retention by the city of all other rights. Background of Item: The City of Miami ("City") is the owner in fee simple of approximately one hundred thirty- one (131) acres of real property generally located at 1400 Northwest 37th avenue, Miami, Florida 33125, identified as folios 01-3132-000-0080 and 01-3132-000-0090, and commonly known as the Melreese Golf Course, ("Site"). Miami Freedom Park, LLC ("MFP") desires to design and develop approximately seventy-three (73) acres of the Site ("Demised Property") for the purposes of constructing a soccer stadium, public park, technology hub, art and entertainment spaces, food and beverage venues, and a hotel and conference center with ancillary commercial uses ("Project"). The City and MFP desire to negotiate and enter into a Ground Lease and Master Development Agreement ("Lease") for the Demised Property for a maximum term of ninety-nine (99) years, comprised of an initial term of thirty-nine (39) years with two (2) additional thirty (30) year options to renew. MFP shall pay to the City an annual minimum rent equal to or exceeding the greater of three million five hundred seventy-seven thousand three hundred sixty-five dollars ($3,577,365.00) or fair market value as determined by two state certified appraisers. The City shall negotiate with MFP to ensure the financial return to the City meets or exceeds fair market value through a minimum rent, profit sharing, or other similar financial contribution from MFP to the City. MFP's proposed Project design includes a state-of-the-art professional soccer complex inclusive of a twenty-eight thousand (28,000) seat stadium and related facilities on approximately ten and one half (10.5) acres of the Demised Property; and The Project is expected to include ancillary development, including, but not limited to, one million (1,000,000) square feet of technology -related office space; one hundred twenty thousand (120,000) square feet of art, music, and entertainment -related uses; three hundred eighty thousand (380,000) square feet of food, beverage and retail uses; approximately five hundred (500) hotel rooms; twenty thousand (20,000) square feet of conference space; and a parking facility with platform covered by a green roof, including multiple publicly available soccer pitches. The City intends to establish a Park Infrastructure Fund ("Fund") to subsidize the construction by MFP of an approximately fifty-eight (58) acre public park ("Park") within the Site, directly adjacent to the Demised Property; and MFP shall contribute approximately twenty million dollars ($20,000,000.00) to the Fund, payable in equal annual installments of six hundred sixty-six thousand six hundred sixty- seven dollars ($666,667.00), for a period of thirty (30) years, to fund the development of the Park and other infrastructure -related costs. The City Commission has determined that the Lease and Project is in the City's best interest. Budget Impact Analysis Item is Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: $3,577,365.00 per year City Manager's Office Office of Management and Budget Legislative Division Office of the City Attorney Office of the City Attorney City Commission Reviewed B Miriam Arcia Christopher M Rose Valentin J Alvarez Valentin J Alvarez Victoria Mendez Maricarmen Lopez City Manager Review Budget Analyst Review Legislative Division Review Deputy City Attorney Review Approved Form and Correctness Meeting Completed 06/29/2018 3:34 PM Completed 07/02/2018 7:12 PM Completed 07/02/2018 7:14 PM Skipped 07/02/2018 7:15 PM Completed 07/02/2018 7:59 PM Completed 07/12/2018 9:00 AM Legislative Division Department of Fire -Rescue Office of the City Attorney Office of the City Attorney City Commission Office of the Mayor Office of the City Clerk Legislative Division Department of Fire -Rescue Office of the City Attorney Office of the City Attorney Office of the City Clerk Valentin J Alvarez Victoria Mendez Marta Gomez Victoria Mendez Maricarmen Lopez Mayor's Office City Clerk's Office Valentin J Alvarez Marta Gomez Barnaby L. Min Victoria Mendez City Clerk's Office Legislative Division Review Completed ACA Review Skipped Deputy Attorney Review Skipped Approved Form and Correctness Completed Meeting Completed Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Legislative Division Review Completed ACA Review Skipped Deputy Attorney Review Completed Approved Form and Correctness with Modification(s) Rendered Completed 07/17/2018 5:42 PM 07/17/2018 8:07 PM 07/17/2018 6:54 PM 07/17/2018 8:29 PM 07/18/2018 10:00 AM 07/18/2018 6:18 PM 07/18/2018 6:22 PM 07/19/2018 12:12 PM 07/27/2018 3:39 PM 07/27/2018 8:54 PM Completed 11/01/2018 1:48 PM City of Miami Legislation Resolution Enactment Number: R-18-0308 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 4449 Final Action Date:7/18/2018 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE AN AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CHARTER"), FOR CONSIDERATION AT A SPECIAL ELECTION SCHEDULED FOR NOVEMBER 6, 2018, 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/STHS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND TO NEGOTIATE AND EXECUTE A GROUND LEASE AND MASTER DEVELOPMENT AGREEMENT ("LEASE") BETWEEN THE CITY OF MIAMI ("CITY") AND MIAMI FREEDOM PARK, LLC ("MFP") FOR APPROXIMATELY SEVENTY-THREE (73) ACRES OF CITY -OWNED PROPERTY LOCATED GENERALLY AT 1400 NORTHWEST 37TH AVENUE, MIAMI, FLORIDA 33125, COMMONLY KNOWN AS MELREESE COUNTRY CLUB AND IDENTIFIED AS FOLIO NUMBERS 01-3132-000-0080 AND 01- 3132-000-0090 ("DEMISED PROPERTY") WITH AN INITIAL TERM OF THIRTY- NINE (39) YEARS WITH TWO (2) ADDITIONAL THIRTY (30) YEAR OPTIONS TO RENEW, FOR A TOTAL TERM OF NINETY-NINE (99) YEARS, WITH AN ANNUAL BASE RENT EQUAL TO THE GREATER OF (A) FAIR MARKET VALUE AS DETERMINED BY STATE CERTIFIED APPRAISERS OR (B) FIVE PERCENT (5.0%) OF RENT FROM THE RETAIL, OFFICE, AND HOTEL DEVELOPMENT WITHIN THE DEMISED PROPERTY, BUT ANNUAL BASE RENT OF NO LESS THAN THREE MILLION FIVE HUNDRED SEVENTY- SEVEN THOUSAND THREE HUNDRED SIXTY-FIVE DOLLARS ($3,577,365.00), IN ADDITION TO A CONTRIBUTION TO THE CITY OF TWENTY MILLION DOLLARS ($20,000,000.00) PAYABLE OVER THIRTY (30) YEARS IN ANNUAL INSTALLMENTS, AND ANY RENT INCREASES AND/OR ADDITIONAL RENTS NEGOTIATED BY THE PARTIES; AUTHORIZING THE USE OF THE DEMISED PROPERTY FOR A SOCCER STADIUM, ENTERTAINMENT CENTER INCLUDING FOOD AND BEVERAGE VENUES, OFFICES, RETAIL, HOTEL AND CONFERENCE CENTER, AND OTHER ANCILLARY COMMERCIAL DEVELOPMENT WITH A MAXIMUM HEIGHT NOT TO EXCEED FEDERAL AVIATION ADMINISTRATION AEROSPACE OBSTRUCTION STANDARDS WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS, GUARANTEEING A LIVING WAGE FOR ALL ON -SITE EMPLOYEES; FURTHER REQUIRING MFP TO UNDERTAKE THE REMEDIATION AND SITE DEVELOPMENT FOR A PUBLIC PARK OF APPROXIMATELY FIFTY-EIGHT (58) ACRES TO BE DEVELOPED ON PROPERTY ADJACENT TO THE DEMISED PROPERTY, CURRENTLY USED FOR THE MELREESE COUNTRY CLUB. WHEREAS, the City of Miami ("City") is the owner in fee simple of approximately one hundred thirty-one (131) acres of real property generally located at 1400 Northwest 37th Avenue, Miami, Florida 33125, identified as folio numbers 01-3132-000-0080 and 01-3132-000- 0090, commonly known as the Melreese County Club ("Site"); and WHEREAS, Miami Freedom Park, LLC ("MFP") desires to design and develop approximately seventy-three (73) acres of the Site ("Demised Property") for the purposes of constructing a soccer stadium, entertainment center including food and beverage venues, offices, retail, hotel and conference center, and other ancillary commercial development ("Project"); and WHEREAS, the City and MFP desire to negotiate and enter into a Ground Lease and Master Development Agreement ("Lease") for the Demised Property for an initial term of thirty- nine (39) years with two (2) thirty (30) year options to renew; and WHEREAS, MFP proposes to pay the City an annual minimum base rent equal to the greater of (a) fair market value as determined by state certified appraisers or (b) five percent (5.0%) of rent from the retail, office, and hotel development within the Demised Property, but annual base rent of no less than three million five hundred seventy-seven thousand three hundred sixty-five dollars ($3,577,365.00); and WHEREAS, the City shall negotiate with MFP to ensure the financial return to the City meets or exceeds fair market value through a minimum rent, profit sharing, or other similar financial contribution from MFP to the City; and WHEREAS, MFP's proposed Project design includes a state-of-the-art professional soccer complex including a twenty-five thousand (25,000) seat stadium and related facilities on approximately ten and one half (10.5) acres of the Demised Property; and WHEREAS, the Project is expected to include ancillary development, including, but not limited to, four hundred thousand (400,000) square feet of office space; six hundred thousand (600,000) square feet of food, beverage, art, music, entertainment -related, and retail uses; at least seven hundred fifty (750) hotel rooms; twenty thousand (20,000) square feet of conference space, guaranteeing a living wage for all on -site employees; and a parking facility with platform covered by a green roof, including multiple publicly available soccer pitches; and WHEREAS, MFP will undertake the remediation and site development for a public park ("New Park") of approximately fifty-eight (58) acres to be developed on the property adjacent to the Demised Property; and WHEREAS, the City will not expend any funds for the remediation of the Demised Property or the New Park and MFP will be responsible for all environmental remediation of the Demised Property and New Park; and WHEREAS, nothing shall preclude MFP from obtaining any tax credits or other economic incentives from federal or state remediation programs; and WHEREAS, the City Commission has determined that the Lease and Project is 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 fully set forth in this Section. Section 2. The City Attorney is directed to prepare an amendment to the Charter of the City of Miami, Florida ("Charter") for consideration at a Special Election to be held on November 6, 2018, proposing, upon approval of the electorate, to amend Section 29-B of the Charter, entitled "City -owned property sale of lease -generally," to authorize the City Commission, by a four -fifths (4/5ths) affirmative vote, to waive competitive bidding and to negotiate and execute a Lease between the City and MFP for the Demised Property with an initial term of thirty-nine (39) years with two (2) thirty (30) year options to renew, for a total term of ninety-nine (99) years, with an annual base rent equal to the greater of (a) fair market value as determined by state certified appraisers or (b) five percent (5.0%) of rent from the retail, office, and hotel development within the Demised Property, but annual base rent of no less than three million five hundred seventy-seven thousand three hundred sixty-five dollars ($3,577,365.00), a contribution to the City of twenty million dollars ($20,000,000.00) payable over thirty years in annual installments, and any rent increases and/or additional rents negotiated by the parties; authorizing the use of the Demised Property for a soccer stadium, entertainment center including food and beverage venues, offices, retail, hotel and conference center, and other ancillary commercial development, guaranteeing a living wage for all on -site employees, with a maximum height not to exceed Federal Aviation Administration Aerospace Obstruction Standards, with restrictions, reversions, and retention by the City of all other rights. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. APPROVED AS TO FORM AND CORRECTNESS: nd City Attar ey 7/2/2018 i ria i nde` z Ci[y Nttor 7/17/2018 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.