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HomeMy WebLinkAboutMemorandumOUTSIDE COUNSEL MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Outside Counsel DATE: March 25, 2021 RE: Settlement for City Commission Meeting — March 25, 2021 West Flagler Associates, Ltd. vs. City of Miami, pending in the United States District Court for the Southern District of Florida. Case No.: 19-CV-21670 File No.: 8555 The attached proposed Resolution seeks authorization for settlement of all claims against the City of Miami. The attached proposed Resolution seeks authorization for settlement of all claims brought against the City of Miami ("City") in matter of West Flagler Associates, Ltd., vs. City of Miami, pending in the United States District Court for the Southern District of Florida, Case No.: 19-21670-CIV-SCOLA. The proposed settlement provides that West Flagler Associates, LTD. ("Plaintiff') may proceed with applying for its permit to build a summer jai alai facility in a T6-O transect without the requirement of obtaining an exception approved by a 4/5th vote of the City Commission as set forth in Article 6, Table 13 of Ordinance No. 13114, the Zoning Ordinance of the City of Miami, Florida, as amended, the Miami 21 Code; that the Commission agrees to consider an ordinance (i) authorizing a card room as a legal nonconforming use to be operated in conjunction with Plaintiff's summer jai alai facility at the specified location effective if and when the Florida Division of Pari-Mutuel Wagering grants Plaintiff a card room permit, but such authorization shall not bind future commissions should the Florida Division of Pari-Mutuel Wagering require a separate approval after Plaintiff has conducted its first game of jai alai, and such subsequent vote shall be by simple majority, and (ii) authorizing sports betting as a legal nonconforming use at the Plaintiff's summer jai alai facility if and when Florida law is amended to authorize sports betting either online or at professional sports venues generally throughout Florida without requiring local approval and subject to all provisions of state law, but if local approval is required such approval shall be subject to the terms of the Miami 21 Code and its Exception provisions; that the summer jai alai facility and card room shall be subject to maximum square footage and capacity limitations and must otherwise conform and be subject to all other provisions of the Miami 21 Code; that passage of the foregoing ordinance is a condition of settlement; that Plaintiff agrees never to conduct any other forms of gambling at the subject location, including slots, craps, roulette or video lottery terminals; that Plaintiff shall deliver a signed consent of the landowner consenting to the restrictions placed upon the subject property; that Plaintiff may not assign any rights under the settlement agreement to any third person other than an entity in which it remains a member or partner and which expressly agrees in writing to all terms of settlement; that the parties shall exchange limited general releases; and that each party will bear their own attorney's fees and costs. Outside Counsel, Raquel A. Rodriguez, has investigated and evaluated this case and recommends this settlement. cc: Arthur Noriega, V, City Manager Miriam Santana, Agenda Coordinator OC Attachment(s) 8555 Exhibit A Attachment(s) 8555 Exhibit A City of Miami Legislation Resolution Enactment Number: R-21-0129 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 8555 Final Action Date:3/25/2021 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), AUTHORIZING THE CITY MANAGER TO EXECUTE ANY AND ALL SETTLEMENT DOCUMENTS, ALL IN FORMS ACCEPTABLE TO OUTSIDE COUNSEL, WITHOUT ADMISSION OF LIABILITY, IN FULL AND COMPLETE SETTLEMENT OF ANY AND ALL CLAIMS AND DEMANDS, INCLUDING ALL CLAIMS FOR ATTORNEYS' FEES, AGAINST THE CITY OF MIAMI ("CITY") AND ITS OFFICERS, AGENTS, AND EMPLOYEES IN THE CASE STYLED WEST FLAGLER ASSOCIATES, LTD. VS. CITY OF MIAMI, PENDING IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA, CASE NO.: 19-21670-CIV-SCOLA; CONTAINING A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 15, 2019, West Flagler Associates, LTD. ("Plaintiff') served a lawsuit against the City of Miami ("City") in the Circuit Court in and for Miami -Dade County, Case No.: 19-10140 CA (43), which was subsequently removed to the United States District Court for the Southern District of Florida, Case No.: 19-21670-CIV-Scola; and WHEREAS, the Plaintiff has proposed a settlement which provides that the Plaintiff may proceed with applying for a Summer Jai Alai Permit ("Permit") without the requirement of obtaining an exception approved by a four -fifths (4/5th) vote of the City Commission as set forth in Article 6, Section 6.1, Table 13 of Ordinance No. 13114, the Zoning Ordinance of the City of Miami, Florida ("Miami 21 Code"), as amended by Ordinance No. 13791 ("Supplemental Regulations"); that the City Commission will consider an ordinance approving the Plaintiff's operation of a card room pursuant to Section 849.086, Florida Statutes, which approval is a condition of the settlement agreement; that the Plaintiff agrees it will not operate any form of gaming, including slot machines, craps, roulette, or video lottery terminals in its summer jai alai facility; providing that if gaming or wagering on sports are made lawful and generally available under state law, then the Plaintiff will be permitted to conduct such sports wagering or gaming at the summer jai alai facility on such conditions as provided by state law and, if required by state law, the Plaintiff will comply with the Supplemental Regulations of the Miami 21 Code in securing approval of sports betting from the City; and that each party will bear their own attorneys' fees and costs; and WHEREAS, the Plaintiff further agrees that any future applications for gambling facilities at any other locations, including but not limited to future jai alai frontons and card rooms at other locations, are subject to the requirements of the Miami 21 Code, including the Supplemental Regulations; however, the Parties further agree that this restriction does not apply to the facilities exempted from the Miami 21 Code as provided therein; and WHEREAS, the Plaintiff may assign the Permit and/or its rights under its partnership with its partner entity regarding the Location to an existing or new entity so long as the Plaintiff remains a partner of any such assignee entity and that assignee entity agrees to be bound by the terms of the settlement agreement ("Agreement"); provided, however, that the Plaintiff agrees that it cannot assign its rights under the Permit or the Agreement to a non-affiliated third party assignee and that the Agreement does not create any direct or third party beneficiary rights in its partner entity or any other person except a permissible assignee who agrees to be bound by the terms of the Agreement; and WHEREAS, the Plaintiff agrees that the space utilized for the jai alai fronton and other pari-mutuel activities as defined under Chapter 550, Florida Statutes, will not provide permanent seating for more than 4,000 patrons, provide for more than 100,000 square feet of exhibition space, or provide off-street parking for more than 1,000 vehicles and will not reach the minimum thresholds of a Regional Activity Complex as defined in Section 1.1(e) of the Miami 21 Code; that the jai alai fronton facility will be subject to a compulsory review by the City's Planning and Zoning Departments and will comply with the Design Review Criteria set forth in Article 4, Table 12 of the Miami 21 Code, a copy of which is attached to the Agreement; and nothing herein shall exempt the Plaintiff of the overall project where the Plaintiff's proposed jai alai fronton will be located from complying with all other applicable provisions of the Miami 21 Code; and WHEREAS, the City and the Plaintiff have agreed to execute the Agreement memorializing the terms of the settlement; and WHEREAS, Raquel A. Rodriguez, Esquire, acting as outside counsel in the pending litigation ("Outside Counsel"), has investigated the claim and lawsuit and recommends that said claim and lawsuit be settled for the terms summarized above and as memorialized in the Agreement; and WHEREAS, the City and the Plaintiff have agreed that as a condition to the Agreement, the owner or owners of the pertinent property must provide its/their written consent to the permanent use restrictions being imposed on the pertinent property pursuant to the Agreement, in a form acceptable to Outside Counsel; and WHEREAS, following approval of the Agreement, the City Commission will consider approval of an ordinance implementing the terms of the Agreement regarding the allowed and restricted uses at the pertinent property, which approval is a condition of the Agreement; and WHEREAS, the City and the Plaintiff have agreed that the Agreement will not be consummated unless the City Commission approves said ordinance and the owner or owners of the pertinent property deliver their written consent; 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 Manager is authorized' to execute any and all settlement documents, substantially in the form attached and incorporated as Exhibit "A", in a form acceptable to Outside Counsel, without admission of liability, for full and complete settlement of the Plaintiff's claims against the City, its agents, officers, and employees in the case styled West Flagler Associates, LTD., vs. City of Miami, pending in the United States District Court for the Southern District of Florida, Case No.: 19-21670-CIV-Scola upon the execution of a joint stipulation of settlement. 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. Section 3. The Commission will conduct the first reading of the ordinance memorializing the allowed and restricted uses contemplated in the Agreement on this date and a second reading at its next scheduled regular meeting or as soon thereafter as it may be heard. Section 4. If any section, part of a section, paragraph, clause, phrase, or word of this Resolution or the Agreement is declared invalid, the remaining provisions of this Resolution and the Agreement being approved hereby shall not be affected. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: Outside Counsel Barnaby I_. Min, Deputy City Attorney 2/2/2021 Outside Counsel 3/2/2021 Outside Counsel Outside Counsel 3/16/2021 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 pursuant to the ruling in the matter of Ernesto Cuesta, et al. v. City of Miami, et al., Case No. 2020-6298-CA-01 currently on appeal in the Third District Court of Appeal, it shall become effective immediately upon override of the veto by the City Commission or, failing such override, at such time as the Third District Court Appeal overrules the ruling in Cuesta.