Loading...
HomeMy WebLinkAboutAgenda Item Cover PageAGENDA ITEM COVER PAGE File ID: #9374 Resolution Sponsored by: Commissioner Alex Diaz de la Portilla 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 ("CITY CHARTER"), FOR CONSIDERATION AT A SPECIAL ELECTION SCHEDULED FOR NOVEMBER 2, 2021 PROPOSING TO AMEND SECTION 29-B OF THE CITY CHARTER, TITLED "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 AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A GROUND LEASE AND MASTER DEVELOPMENT AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND SUNTEX MARINA INVESTORS, LLC OR AN AFFILIATE THEREOF ("SUNTEX") FOR APPROXIMATELY TWENTY SEVEN (27) ACRES OF CITY -OWNED PROPERTY (INCLUDING UPLANDS AND SUBMERGED LANDS) IN VIRGINIA KEY AND LOCATED AT 3301, 3307, 3605, AND 3501 RICKENBACKER CAUSEWAY, MIAMI, FLORIDA AND IDENTIFIED AS FOLIO NOS. 01-4217-000-0020, 01-4218-000-0030, 01-4218-000-0031, 01-4218-000-0010, AND 01-4217-000-0030 (COLLECTIVELY, "PROPERTY") FOR AN INITIAL TERM OF FORTY FIVE (45) YEARS WITH TWO (2) FIFTEEN (15) YEAR RENEWAL TERMS WITH THE CUMULATIVE TERM, INCLUSIVE OF BOTH RENEWALS, NOT TO EXCEED SEVENTY-FIVE (75) YEARS AND PROVIDING FOR AN ANNUAL RENT EQUAL TO THE GREATER OF FAIR MARKET VALUE AS DETERMINED BY TWO (2) INDEPENDENT STATE CERTIFIED APPRAISERS OR (A) TWO MILLION SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS ($2,750,000.00) PLUS (B) A PERCENTAGE RENT EQUAL TO SEVEN PERCENT (7%) OF THE GROSS REVENUES GENERATED FROM WET SLIP AND DRY STORAGE, SEVEN PERCENT (7%) OF GROSS REVENUES GENERATED FROM FUEL SALES, SEVEN PERCENT (7%) OF THE GROSS REVENUES GENERATED FROM SUBLEASE INCOME, AND FIVE PERCENT (5%) OF GROSS REVENUES GENERATED FROM OTHER INCOME -GENERATING SOURCES RECEIVED FROM THE PROJECT FOR THE DEVELOPMENT OF A WORLD -CLASS MIXED -USE MARINA FACILITY WITH A MINIMUM CAPITAL COMMITMENT BY SUNTEX OF ONE HUNDRED MILLION DOLLARS ($100,000,000.00); AUTHORIZING THE USE OF THE PROPERTY FOR A MIXED -USE WATERFRONT FACILITY INCLUDING, BUT NOT LIMITED TO, MARINAS, BOATYARD, DOCK MASTER'S OFFICES, SHIP'S STORES, DRY RACK BOAT AND OTHER VESSEL STORAGE, WET SLIP DOCKS, RESTAURANTS, RETAIL, FUEL FACILITIES, AND OTHER RECREATIONAL AND MARINE RELATED USES, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS. City of Miami Legislation Resolution City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 9374 Final Action Date:7/22/2021 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 ("CITY CHARTER"), FOR CONSIDERATION AT A SPECIAL ELECTION SCHEDULED FOR NOVEMBER 2, 2021 PROPOSING TO AMEND SECTION 29-B OF THE CITY CHARTER, TITLED "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 AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A GROUND LEASE AND MASTER DEVELOPMENT AGREEMENT, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND SUNTEX MARINA INVESTORS, LLC OR AN AFFILIATE THEREOF ("SUNTEX") FOR APPROXIMATELY TWENTY SEVEN (27) ACRES OF CITY -OWNED PROPERTY (INCLUDING UPLANDS AND SUBMERGED LANDS) IN VIRGINIA KEY AND LOCATED AT 3301, 3307, 3605, AND 3501 RICKENBACKER CAUSEWAY, MIAMI, FLORIDA AND IDENTIFIED AS FOLIO NOS. 01-4217-000-0020, 01-4218-000-0030, 01-4218-000-0031, 01-4218-000-0010, AND 01-4217-000-0030 (COLLECTIVELY, "PROPERTY") FOR AN INITIAL TERM OF FORTY FIVE (45) YEARS WITH TWO (2) FIFTEEN (15) YEAR RENEWAL TERMS WITH THE CUMULATIVE TERM, INCLUSIVE OF BOTH RENEWALS, NOT TO EXCEED SEVENTY-FIVE (75) YEARS AND PROVIDING FOR AN ANNUAL RENT EQUAL TO THE GREATER OF FAIR MARKET VALUE AS DETERMINED BY TWO (2) INDEPENDENT STATE CERTIFIED APPRAISERS OR (A) TWO MILLION SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS ($2,750,000.00) PLUS (B) A PERCENTAGE RENT EQUAL TO SEVEN PERCENT (7%) OF THE GROSS REVENUES GENERATED FROM WET SLIP AND DRY STORAGE, SEVEN PERCENT (7%) OF GROSS REVENUES GENERATED FROM FUEL SALES, SEVEN PERCENT (7%) OF THE GROSS REVENUES GENERATED FROM SUBLEASE INCOME, AND FIVE PERCENT (5%) OF GROSS REVENUES GENERATED FROM OTHER INCOME -GENERATING SOURCES RECEIVED FROM THE PROJECT FOR THE DEVELOPMENT OF A WORLD -CLASS MIXED -USE MARINA FACILITY WITH A MINIMUM CAPITAL COMMITMENT BY SUNTEX OF ONE HUNDRED MILLION DOLLARS ($100,000,000.00); AUTHORIZING THE USE OF THE PROPERTY FOR A MIXED -USE WATERFRONT FACILITY INCLUDING, BUT NOT LIMITED TO, MARINAS, BOATYARD, DOCK MASTER'S OFFICES, SHIP'S STORES, DRY RACK BOAT AND OTHER VESSEL STORAGE, WET SLIP DOCKS, RESTAURANTS, RETAIL, FUEL FACILITIES, AND OTHER RECREATIONAL AND MARINE RELATED USES, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER RIGHTS. WHEREAS, the City of Miami ("City") owns in fee simple the waterfront properties on Virginia Key known as the Rickenbacker Marina and Marine Stadium Marina, including approximately twenty-seven (27) acres of combined uplands and submerged lands, located at 3301, 3307, 3605, and 3501 Rickenbacker Causeway, Miami, Florida ("Property"); and WHEREAS, Suntex Marina Investors, LLC or an affiliate thereof ("Suntex") desires to design and develop the Property for the purposes of constructing a mixed -use world class marine facility including, but not limited to, marinas, boatyards, dock master's offices, ship's stores, dry rack boat and other vessel storage, wetslip docks, restaurants, retail, fuel facilities, and other recreational and marine -related uses ("Project"); and WHEREAS, the City and Suntex desire to negotiate and enter into a Ground Lease and Master Development Agreement ("Lease") of the Property for an initial term of forty-five (45) years with two (2) fifteen (15) year options to renew for a maximum possible term of seventy- five (75) years; and WHEREAS, the Project shall be world class and require a minimum capital commitment from Suntex of one hundred million dollars ($100,000,000.00); and WHEREAS, Suntex will pay to the City an annual rent equal to the greater of fair market value as determined by two (2) independent State certified appraisers or (a) two million seven hundred and fifty thousand dollars ($2,750,000.00) ("Base Rent") plus (b) seven percent (7%) of gross revenues generated from wet slip and dry storage, gross revenues generated from fuel sales, and gross revenues generated from sublease income, and five percent (5%) of gross revenues generated from other income -generating sources received from the Project ("Percentage Rent"); and WHEREAS, for purposes of calculating Percentage Rent, gross revenues means the total amount of income received by Suntex prior to deductions; and WHEREAS, the City will negotiate with Suntex 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 Suntex to the City, but in no event less than the Base Rent plus Percentage Rent; and WHEREAS, Suntex proposes to design, fund, construct, and operate the Project, which will include, without limitation, floating dock systems, a public coastal promenade, and ample parking facilities; and WHEREAS, the Project will help implement major components of the Virginia Key Master Plan and will include new resiliency standards, public promenades, open green space, and shall incorporate green elements into the design; and WHEREAS, the Lease will allow reasonable public access to the water and reasonable public use of the Property and comply with other waterfront setback and view -corridor requirements of the Charter of the City of Miami, Florida, as amended ("City Charter"); and WHEREAS, the approval of the Lease shall be subject to compliance with all laws, regulations, or restrictions imposed upon the Property; and WHEREAS, Suntex shall be responsible for all expenses and costs associated with the Project and the Property, including, without limitation, reimbursing the City for all bond funds and other restricted funds utilized at the Property or any portion thereof and any costs imposed by the State pursuant to the deed restriction; and WHEREAS, the City Commission has determined that the Lease and the Project are 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 if fully set forth in this Section. Section 2. The City Attorney is directed to prepare an amendment to the City Charter for consideration at a Special Election to be held November 2, 2021 proposing to amend Section 29-B of the City Charter, titled "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 the City Manager to negotiate and execute a Lease, in a form acceptable to the City Attorney, between the City and Suntex for approximately twenty seven (27) acres of City -owned property in Virginia Key and located at 3301, 3307, 3605, and 3501 Rickenbacker Causeway, Miami, Florida 33149, commonly known as the Rickenbacker Marina and Marine Stadium Marina and identified as folio nos. 01-4217-000-0020, 01-4218-000-0030, 01-4218-000-0031, 01-4218-000-0010, and 01-4217-000-0030 for an initial term of forty-five (45) years with two (2) fifteen (15) year options to renew for a total possible term not to exceed seventy-five (75) years and providing for an annual rent equal to the greater of fair market value as determined by two (2) independent State certified appraisers or (a) two million five hundred thousand dollars ($2,500,000.00) plus (b) a percentage rent equal to seven percent (7%) of the gross revenues generated from wet slip and dry storage, seven percent (7%) of gross revenues generated from fuel sales, seven percent (7%) of the gross revenues generated from sublease income, and five percent (5%) of gross revenues generated from other income -generating sources received from the Project, authorizing the use of the Property for a mixed -use waterfront facility including, but not limited to, marinas, boatyard, dock master's offices, ship's stores, dry rack boat and other vessel storage, wetslip docks, restaurants, and other recreational and marine related uses for the development of a world -class mixed -use marina facility with a minimum capital commitment by Suntex of one hundred million dollars ($100,000,000.00), 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: ndez, City Attor ey 7/13/2021 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.