HomeMy WebLinkAboutBack-Up DocumentsSUNTEMARINAS'
July 7, 2021
Arthur Noriega
City of Miami Manager
Miami Riverside Center
444 S.W. 2nd Avenue
Miami, FL 33130
Re: Unsolicited Bid Virginia Key Marina
Dear Mr. Noriega:
This letter shall serve as an unsolicited bid by Suntex Marina Investors, LLC ("Suntex")
for the redevelopment, lease and occupancy (in the form of ground lease and mater development
agreement acceptable to the City) of the marinas located on Virginia Key, namely the City Marina
and the Rickenbacker Marina (collectively referred to "Virginia Key Marina") comprising
approximately 27 acres.
Suntex Marina Investors is one of the largest owner, operator and marina development
companies in the United States, and the world, with over 1.2 billion of mixed use waterfront assets
(Marinas) and over 1,000 employees across the County.
Currently Suntex has six marinas in the state of Florida, two in Dade County and one in
the City of Miami (Bayshore Landing/Monty' s). We have a large local presence in the City and
employ over 100 people in the City of Miami directly and numerous more indirectly. We employ
over 400 in the state of Florida and over 150 in Dade County. Suntex is in active acquisition mode
and is focused on growing its presence in the City of Miami.
We are prepared to immediately proceed to contract based upon the following basic lease
terms and conditions:
1. Lessee: Suntex Marina Investors, LLC, or its affiliate.
2. Marina Property: The Rickenbacker Marina and the City Marina.
3. Lessor: City of Miami.
4. Lease Parameters: To design, develop and construct a new World -Class Mixed -Use Marina
Facility with dry slips, wet slips, restaurants, retail, ship store, fuel and other recreational
and marine related activities. Such design to comply with the Virginia Key Master Plan
and include new resiliency standards, public promenades, open green space and be both
environmentally and ecologically friendly incorporating green elements wherever possible.
5. Minimum Capital Commitment: $100,000,000 (or whatever is required to create a World
Class Marine Facility).
17330 Preston Rd., Suite 220A Dallas, Texas 75252 p: 972 789 1400 f: 972 763 0300 info@suntex.com suntex.com
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6. Lease Term: 45-year initial term with two 15-year renewal term options (75 years in total).
7. Lease Compensation: The compensation of the lease terms shall be the greater of the below
terms or the fair market value as determined by two independent appraisers:
a. Base Rent: $2.75 Commencing in Year 1 with annual increases tied to CPI or a
fixed rate acceptable to the City.
b. Percentage Rent: Percentage Rent shall be paid to the City along the following
formulas:
i. Slip License or Lease Income (dry or wet): 7% of revenues
ii. Fuel Sales Income: 7% of revenues
iii. Sublease Income (Upland Tenants): 7% of revenues
iv. Internally Operated and Other Ancillary Income: 5% of revenues
Suntex is prepared to immediately move forward and has all the capital necessary to
complete the redevelopment of the Virginia Key Marina. Please see the two attached letters from
our Chief Financial Officer and Centerbridge Partners, our largest capital partner, approving this
transaction and the demonstration of all the funds necessary to complete the proposed
redevelopment of Virginia Key Marina.
For way to long, Miami has had sub -par marine facility at Virginia Key. The City of Miami
deserves better. Please make sure that any proposed lessee has the proven wherewithal and capital
to complete this project, which Suntex believes that only we possess.
If you have any additional questions, please feel free to contact me.
Suntex Marina Investors, LLC
Name: David Filler
Its: Head of Investments
SUNTEX MARINAS'
July 7, 2021
Arthur Noriega
City of Miami Manager
Miami Riverside Center
444 S.W. 2nd Avenue
Miami, FL 33130
RE: Finance Letter — Virginia Key Marina
Mr Noriega:
Suntex Marina Investors LLC owns and operates 31 marinas, six of which are in Florida and 1 in City of Miami
(Bayshore Landing). As of July 5, 2021, Suntex Marina Investors LLC has more than $1.2 billion in assets on its
balance sheet.
With our cash on hand, availability under our Bank of America credit facility and ability to call capital from our
existing investor base, including Centerbridge Partners, we have more than sufficient capital to support the
$100,000,000 proposed transaction in Virginia Key.
Please do not hesitate to contact me with any questions.
Sincerely,
Thomas N. Tipton, Jr.
Chief Financial Officer
17330 Preston Road • Suite 220A • Dallas, TX 75252
IS — Project Manager Page 2
Centerbridge
July 7, 2021
Arthur Noriega
City of Miami Manager
Miami Riverside Center
444 S.W. 2nd Avenue
Miami, Florida 33130
Dear Mr. Noriega,
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment
disciplines —from private equity to private credit and related strategies, and real estate —in an effort to develop the most attractive
opportunities for our investors. The Firm was founded in 2005 and has over $30 billion in capital under management with offices
in New York and London. Centerbridge is dedicated to partnering with world -class management teams across targeted industry
sectors and geographies and is Suntex's largest investor and capital partner. The General Partners at Centerbridge have complete
discretion over the investment of the funds' capital, have approved the pursuit of the Virginia Key Marina transaction by Suntex,
and have adequate capital to fully -fund the entirety of the transaction with immediately available funds.
Sincerely,
Matthew Dabrowski
Managing Director
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