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HomeMy WebLinkAboutAgenda Item Cover PageAGENDA ITEM COVER PAGE File ID: #16222 Resolution Sponsored by: Commissioner Damian Pardo A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE A PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CHARTER") FOR CONSIDERATION AT THE GENERAL ELECTION SCHEDULED FOR NOVEMBER 5, 2024, PROPOSING, UPON APPROVAL OF THE ELECTORATE, AND OTHER CONDITIONS THE CITY MAY REQUIRE, TO AMEND SECTION 29-C OF THE CHARTER, TITLED "WATSON ISLAND," TO AUTHORIZE THE CITY COMMISSION, BYA FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE CITY MANAGER, FOR FAIR MARKET VALUE, TO NEGOTIATE AND EXECUTE FIRST AMENDMENTS TO THE MASTER DEVELOPMENT AGREEMENT, RETAIL COMPONENT GROUND LEASE, PARKING COMPONENT GROUND LEASE AND SECOND AMENDMENT TO THE AMENDED AND RESTATED MIXED USE PROJECT DECLARATION ("AGREEMENTS") WITH BH3 IG DEVELOPER LLC AND ITS SUBSIDIARIES ("BH3"), TO EXTEND THE TERM OF THE LEASES BY 24 YEARS, TO PERMIT CONDOMINIUM FORM OF OWNERSHIP, AND TO PROVIDE FOR OFFICE SPACE AS A PERMITTED USE, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER EXISTING CITY RIGHTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. City of Miami Legislation Resolution Enactment Number: R-24-0274 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 16222 Final Action Date:7/11/2024 A RESOLUTION OF THE MIAMI CITY COMMISSION DIRECTING THE CITY ATTORNEY TO PREPARE A PROPOSED AMENDMENT TO THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS AMENDED ("CHARTER") FOR CONSIDERATION AT THE GENERAL ELECTION SCHEDULED FOR NOVEMBER 5, 2024, PROPOSING, UPON APPROVAL OF THE ELECTORATE, AND OTHER CONDITIONS THE CITY MAY REQUIRE, TO AMEND SECTION 29-C OF THE CHARTER, TITLED "WATSON ISLAND," TO AUTHORIZE THE CITY COMMISSION, BYA FOUR -FIFTHS (4/5THS) AFFIRMATIVE VOTE, TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE CITY MANAGER, FOR FAIR MARKET VALUE, TO NEGOTIATE AND EXECUTE FIRST AMENDMENTS TO THE MASTER DEVELOPMENT AGREEMENT, RETAIL COMPONENT GROUND LEASE, PARKING COMPONENT GROUND LEASE AND SECOND AMENDMENT TO THE AMENDED AND RESTATED MIXED USE PROJECT DECLARATION ("AGREEMENTS") WITH BH3 IG DEVELOPER LLC AND ITS SUBSIDIARIES ("BH3"), TO EXTEND THE TERM OF THE LEASES BY 24 YEARS, TO PERMIT CONDOMINIUM FORM OF OWNERSHIP, AND TO PROVIDE FOR OFFICE SPACE AS A PERMITTED USE, WITH RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL OTHER EXISTING CITY RIGHTS, ALL IN A FORM ACCEPTABLE TO THE CITY ATTORNEY. WHEREAS, the City of Miami ("City") owns real property located at 888 MacArthur Causeway, 880 MacArthur Causeway, 840 MacArthur Causeway, 800 MacArthur Causeway, 850 MacArthur Causeway, and 950 MacArthur Causeway, Miami, Florida, Folio No. 01-3231- 061-0010, (collectively, the "Property"); and WHEREAS, the City and Flagstone Island Gardens, LLC, a Delaware limited liability company ("Flagstone") entered into that certain Master Development Agreement ("MDA"), dated April 13, 2020; and WHEREAS, the MDA included as exhibits (i) the form of Generic Ground Lease Terms (Rider 1) (the "Form Rider 1"), (ii) the form of Luxury Hotel Lease (the "Form Luxury Hotel Lease"), (iii) the form of Lifestyle Hotel Lease (the "Form Lifestyle Hotel Lease"), and (iv) the form of Residences Lease (the "Form Residences Lease", together with the Form Luxury Hotel Lease and Form Lifestyle Hotel Lease, collectively, the "Form Base Leases", together with the Form Rider 1, collectively the "Form Leases"); and WHEREAS, the City and Flagstone entered into that certain Retail Component Ground Lease and that certain Parking Component Ground Lease, each dated April 13, 2020; and WHEREAS, Flagstone assigned its rights under the MDA to require the City to enter into the Luxury Hotel Lease, the Residences Lease, and the Lifestyle Hotel Lease to BH3 by execution of that certain MDA Assignment of Rights dated as of April 12, 2023. As of the Amendment Date, the Luxury Hotel Lease, the Residences Lease, and the Lifestyle Hotel Lease do not yet exist; and WHEREAS, Flagstone transferred 100% of interest in the Retail Component Ground Lease, Parking Component Ground Lease, and Master Development Agreement (collectively, the "Project") to BH3; and WHEREAS, Flagstone assigned BH3 its interest in the MDA pursuant to that certain MDA Assignment of Rights, Assignment and Assumption of the Retail Ground Lease, Parking Ground Lease, dated April 12, 2023; and WHEREAS, BH3 wishes to extend the term of the leases by 24 years (to a total of 99 years); and WHEREAS, BH3 wishes to amend the agreements to allow condominium form of ownership in the residences, rather than timeshare; and WHEREAS, BH3 wishes to amend the agreement to allow for office space to be leased to occupants who are not affiliates; and WHEREAS, the City Commission of the City of Miami has determined that the Agreements will be 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 a proposed amendment to the Charter of the City of Miami, Florida, as amended ("Charter"), proposing, upon approval of the electorate, and other conditions the City may require, to amend Section 29-C of the Charter, titled "Watson Island," to authorize the City Commission, by a four -fifths (4/5ths) affirmative vote, to waive competitive bidding and authorize the City Manager, for Fair Market Value, to negotiate and execute the Agreements to extend the term of the leases by 24 years, to permit condominium form of ownership, and to provide for office space as a permitted use, with restrictions, reversions, and retention by the City of all other existing City rights, all in a form acceptable to the City Attorney. Section 3. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. APPROVED AS TO FORM AND CORRECTNESS: 6/17/2024 ng III. C ty' for ey 7/22/2024 1 If the Mayor does not sign this Resolution, it shall become effective at the end of ten 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.