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HomeMy WebLinkAboutO-13989City of Miami Ordinance 13989 Legislation City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 8745 Final Action Date: 4/8/2021 AN ORDINANCE OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), PURSUANT TO A PROPOSED SETTLEMENT AGREEMENT, ATTACHED AND INCORPORATED AS EXHIBIT "1" ("SETTLEMENT AGREEMENT"), (A) CONDITIONALLY AUTHORIZING LIMITED GAMBLING USES AT THE REAL PROPERTY DESCRIBED AS LOT 4, BLOCK 4 OF THE ELWOOD COURT SUBDIVISION RECORDED AT PLAT BOOK 9, PAGE 181 OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA ("COUNTY") AND TRACT C OF THE EXECUTIVE PLAZA SUBDIVISION RECORDED AT PLAT BOOK 121, PAGE 87 OF THE PUBLIC RECORDS OF THE COUNTY, AS MORE PARTICULARLY DESCRIBED IN COMPOSITE EXHIBIT "A" OF THE SETTLEMENT AGREEMENT, ATTACHED AND INCORPORATED (COLLECTIVELY, "PROPERTY"), UPON MEETING CERTAIN CONDITIONS AND IMPOSING PERMANENT PROHIBITIONS ON ALL OTHER FORMS OF GAMBLING AT THE PROPERTY AS A CONDITION OF ALLOWING THE SPECIFIED GAMBLING USES, ALL OF WHICH SHALL TAKE EFFECT ONLY IF WEST FLAGLER ASSOCIATES, LTD. ("WEST FLAGLER") HAS (i) ENTERED INTO THE SETTLEMENT AGREEMENT WITH THE CITY OF MIAMI AS APPROVED BY THE CITY COMMISSION AND IN A FORM ACCEPTABLE TO OUTSIDE COUNSEL AND (ii) FULFILLED ALL TERMS AND CONDITIONS OF SUCH SETTLEMENT AGREEMENT; (B) CONDITIONALLY APPROVING A CARD ROOM AT THE PROPERTY TO TAKE EFFECT ONCE WEST FLAGLER HAS OBTAINED A CARD ROOM PERMIT FOR THE PROPERTY FROM THE STATE OF FLORIDA'S DIVISION OF PARI-MUTUEL WAGERING, SUCH CARD ROOM TO BE CONTAINED WITHIN THE TOTAL SUMMER JAI ALAI FACILITY FOOTPRINT, SIZE, AND DESIGN PARAMETERS AS PROVIDED IN THE SETTLEMENT AGREEMENT AND SUCH CARD ROOM FURTHER NOT TO EXCEED 20,000 SQUARE FEET OF THE SUMMER JAI ALAI FACILITY OR MAXIMUM CAPACITY OF 500 PERSONS (SUBJECT TO APPLICABLE FIRE SAFETY CODES) AND SHALL NOT OPERATE FOR MORE THAN SIXTEEN (16) HOURS PER DAY; AND (C) PERMANENTLY BANNING ALL OTHER FORMS OF GAMBLING AT THE PROPERTY EXCEPT AS SPECIFICALLY PROVIDED HEREIN; CONTAINING A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 15, 2019, West Flagler Associates, Ltd. ("West Flagler") served a lawsuit against the City of Miami ("City") in the Eleventh Judicial 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, West Flagler has proposed a settlement agreement, attached and incorporated as Exhibit "1", as approved by the City Commission pursuant to Resolution No. R- City of Miami Page 1 of 6 File ID: 8745 (Revision: A) Printed On: 5/19/2025 File ID: 8745 Enactment Number: 13989 21-0129 on March 25, 2021 and in a form acceptable to Outside Counsel ("Settlement Agreement"), which provides that West Flagler may proceed with applying for its permit to build a summer jai alai facility ("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 West Flagler's operation of a card room pursuant to Section 849.086, Florida Statutes, and such approval is a condition of the Settlement Agreement; that West Flagler agrees it will not operate any form of gaming, including slot machines, craps, roulette, or video lottery terminals in its summer jai alai facility (as further described below); providing that if gaming or wagering on sports are made lawful and generally available under state law, then West Flagler will be permitted to conduct such sports wagering or gaming at the Property on such conditions as provided by state law and, if required by state law, West Flagler 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, West Flagler 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, West Flagler may assign the Permit and/or its rights under its partnership with its partner entity regarding the Location (as defined below) to an existing or new entity so long as West Flagler remains a partner of any such assignee entity and that assignee entity agrees to be bound by the terms of the Settlement Agreement; provided, however, that West Flagler agrees that it cannot assign its rights under the Permit or the Settlement Agreement to a non-affiliated third party assignee and that the Settlement 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 Settlement Agreement; and WHEREAS, West Flagler 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 Property 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 Settlement Agreement; and nothing herein shall exempt the development of the overall project where West Flagler'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 West Flagler have agreed to execute a written Settlement 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 Settlement Agreement; and City of Miami Page 2 of 6 File ID: 8745 (Revision: A) Printed on: 5/19/2025 File ID: 8745 Enactment Number: 13989 WHEREAS, the City and West Flagler have agreed that as a condition to the Settlement Agreement and in lieu of a development agreement, the owner (or owners) of the Location must provide written consent to the permanent use restrictions being imposed on the Location pursuant to the Settlement Agreement; and WHEREAS, the approval of an ordinance implementing the terms of the Settlement Agreement regarding the allowed and restricted uses at the Location is a condition of the Settlement Agreement; and WHEREAS, the City and West Flagler have agreed that the Settlement Agreement will not be consummated unless all conditions of the Settlement Agreement are fulfilled and the City Commission approves this proposed Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated as fully set forth in this Section. Section 2. The City Commission hereby approves the following uses as legal non - confirming uses under the Miami 21 Code at the real property described as Lot 4, Block 4 of the Elwood Court Subdivision recorded at Plat Book 9, Page 181 of the Public Records of Miami -Dade County, Florida ("County") and Tract C of the Executive Plaza Subdivision recorded at Plat Book 121, Page 87 of the County, as more particularly described in Composite Exhibit "A" of the proposed Settlement Agreement, attached and incorporated ("Location"); provided, however, that such approval is conditioned as follows: A.) Approval for Operation of Summer Jai Alai Fronton. i) Approval of West Flagler's application for a building permit or certificate of use for a summer jai alai fronton at the Location and any related permits, licenses, and approvals required to be obtained by West Flagler, including, but not limited to, business tax receipts, shall not be subject to the Exception requirements of the Supplemental Regulations of the Miami 21 Code. ii) West Flagler's applications, including its building permit or certificate of use applications, shall be processed in a timely manner so long as all other applicable criteria are met. iii) West Flagler may assign the Permit and/or its rights under its partnership with its partner entity pursuant to a Memorandum of Understanding with a partner entity owned and controlled by 3195 Property, LLC, a Delaware limited liability company, and/or the entities that own the land described in the Permit as part of Composite Exhibit "A" to the Settlement Agreement (collectively, "Partner Entity") regarding the Location to an existing or new entity so long as West Flagler remains a partner of any such assignee entity and that assignee entity agrees in writing to be bound by the terms of this Settlement Agreement. West Flagler agrees that it cannot assign its rights under the Permit or the Settlement Agreement to a non- affiliated third party assignee and that the Settlement 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 Settlement Agreement. City of Miami Page 3 of 6 File ID: 8745 (Revision: A) Printed on: 5/19/2025 File ID: 8745 Enactment Number: 13989 iv) The space utilized for the summer 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 by Section 1.1(e) of the Miami 21 Code. v) The Location 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 hereto and incorporated to the Settlement Agreement as Exhibit "B." Nothing herein shall exempt the development of the overall project at the Location where the Location is situated from complying with all other applicable provisions of the Miami 21 Code. B.) Approval for Operation of Card Room. (i) Pursuant to Section 849.086(16), Florida Statutes, a card room use by West Flagler in conjunction with the Permit is approved at the Location to be effective only if and when the Florida Department of Business Regulation Division of Pari-Mutuel Wagering ("DPBR") issues West Flagler a permit to operate a card room at the Location. West Flagler's operation of the card room, and any related permits, licenses, and approvals, including, but not limited to business tax receipts, shall not be subject to the Exception requirement of the Supplemental Regulations of the Miami 21 Code. (ii) If DPBR requires a separate vote pursuant to Section 849.086(26), Florida Statutes, to approve the card room operation at the Location in conjunction with the Permit after the summer jai alai fronton is operational, nothing herein shall bind any future City Commission on its consideration of the request for approval of the card room. If such a subsequent vote is required by DPBR, West Flagler will be required to obtain the required votes for approval, after a public hearing, with proper notice and all costs to be paid by West Flagler. If such additional approval by the City Commission is required by DPBR, the votes required for West Flagler's card room at the Location shall not be subject to the Exception requirements of the Supplemental Regulations of the Miami 21 Code and only a majority vote will be required for approval of a card room operation in conjunction with West Flagler's jai alai fronton operation. (iii) The card room shall be contained within the total jai alai fronton facility footprint, size, and design parameters as provided in Section 2.A), shall not exceed 20,000 square feet of the jai alai fronton facility or maximum capacity of five hundred (500) persons (subject to applicable fire safety codes), and shall not operate for more than sixteen (16) hours per day. (iv) No other terms or conditions of the Supplemental Regulations of the Miami 21 Code shall apply to the approval process for the card room and only a simple majority vote of the Commission shall be required. City of Miami Page 4 of 6 File ID: 8745 (Revision: A) Printed on: 5/19/2025 File ID: 8745 Enactment Number: 13989 (v) Failure to obtain subsequent approval shall in no way affect the validity or enforceability of the Settlement Agreement. C.) Limitation on Future Uses. i) In consideration for permitting the foregoing limited uses, the Location will never be used for gaming or wagering activities, including but not limited to slot machine type gambling devices as defined by Section 551.102(8), Florida Statutes, the games of craps or roulette, or video lottery terminals ("VLT"') and all such uses are permanently prohibited at the Location; provided that if gaming or wagering activities on sports (also known as "sports betting") are made lawful and generally available to all residents of the State of Florida ("State"), either online or at professional sports venues under State law, then West Flagler will be permitted to conduct such sports betting at the Location on such terms and conditions as provided by State law. However, if sports betting is made lawful and available by State law in a manner that requires local government approval, West Flagler shall comply with the Supplemental Regulations of the Miami 21 Code, including its Exception provisions, in securing such approval. Failure to obtain such approval shall in no way affect the validity or enforceability of the Settlement Agreement. ii) Any future applications for gambling facilities at any other locations owned or operated by West Flagler, including but not limited to future summer jai alai frontons and card rooms at such other locations, are subject to the requirements of the Supplemental Regulations of the Miami 21 Code, including the Exception provisions. The restriction under this Section 2.C.ii does not apply to the facilities exempted from the Supplemental Regulations of the Miami 21 Code as provided in Section 4 of Ordinance No. 13791. Section 3. This Ordinance has no effect on and does not operate to prohibit any other gambling or wagering activity otherwise lawfully permissible under Chapters 550 and 849, Florida Statutes, including gambling and pari-mutuel activities, currently conducted under the licenses held by West Flagler known as "Magic City Casino" located at 450 N.W. 37th Avenue, Miami, Florida 33125 ("Magic City Casino") and by Miami Casino, LLC d/b/a/ Casino Miami located at 3500 N.W. 37th Avenue, Miami, Florida 33142 ("Casino Miami"), including their continued operation of slot machines. This Ordinance does not prohibit Magic City Casino and/or Casino Miami from engaging in pari-mutuel activities in the future that may be permitted by State law. Section 4. If any section, part of a section, paragraph, clause, phrase, or word of this Ordinance is declared invalid, the remaining provisions of this Ordinance shall not be affected. Section 5. This Ordinance shall become effective immediately upon its adoption and signature of the Mayor.' 1 This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10) days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein, whichever is later. City of Miami Page 5 of 6 File ID: 8745 (Revision: A) Printed on: 5/19/2025 File ID: 8745 Enactment Number: 13989 APPROVED AS TO FORM AND CORRECTNESS: Outside Counsel Outside Counsel 4/19/2021 City of Miami Page 6 of 6 File ID: 8745 (Revision: A) Printed on: 5/19/2025