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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #17244 Date: 02/12/2025 Commission Meeting Date: 02/27/2025 Requesting Department: Department of Real Estate and Asset Management Sponsored By: Miguel Gabela District Impacted: District 1 Type: Resolution Subject: Authorize Grant of Easement - Miami Freedom Park Purpose of Item: A Resolution of the Miami City Commission, with attachment(s), pursuant to Section 29- B(c) of the charter of the City of Miami, Florida, as amended, authorizing the City Manager to execute Grant of Easements ("Easement Agreement"), in a form acceptable to the City Attorney, to the Florida Power & Light Company, a Florida profit corporation ("FPL"), on a portion of City of Miami ("City") owned property identified by folio numbers 01-3132-000-0090 and 01-3132-000-0105, Miami, Florida (collectively "Property"), containing a combined total size of approximately ninety-three thousand four hundred fifty-nine thousand (93,459) square feet, as more particularly described in Exhibit "A", attached and incorporated, for the equipment and improvements constructed or placed on the substation premises, including but not limited to an electric substation and equipment associated therewith, attachments and appurtenant facilities, equipment for the transmission and distribution of electricity and for utility communication purposes and other uses consistent with the operation of an electric utility substation, including, but not limited to, above ground and underground wires, poles, breakers, bus, relay vault, towers, cables, conduits, fiber, anchors, guys, conveyance pipes related to the exfiltration system and equipment associated therewith, attachments and appurtenant equipment, transformers, buildings, fences, roads, driveway, trails, landscape and irrigation, attachments and equipment for electrical purposes, and other uses consistent with the operation of an electric utility substation (collectively "Substation Facilities"); the City will also grant a perpetual non-exclusive access road easement for access through the property to the Substation Facilities, as more particularly described in Exhibit B, attached and incorporated ("Access Road Easement"); further authorizing the City Manager to negotiate and execute all necessary documents, including amendments and modifications to said Easement Agreement, in a form acceptable to the city attorney, as may be necessary to effectuate this transaction. Background of Item: The City of Miami ("City"), owns certain real property Identified By Folio Numbers 01- 3132-000-0090 and 01-3132-000-0105, Miami, Florida (Collectively "Property"). City and Miami Freedom Park, LLC, a Delaware limited liability company (the "Tenant") entered into that certain Ground Lease for Soccer Stadium, effectively dated February 9, 2023 (the "Ground Lease"). Pursuant to the Ground Lease, City leased to Tenant that certain parcel of real property located in City of Miami for a soccer stadium (the "Stadium Parcel"). To operate the Stadium Parcel efficiently, the City seeks to establish an electric substation. Florida Power & Light Company ("FPL") has requested the easements ("Easement Agreement") on that certain portion of the Property, containing a combined total size of approximately ninety-three thousand four hundred fifty-nine thousand (93,459) square feet, as more particularly described in Exhibit "A", attached and incorporated, for the equipment and improvements constructed or placed on the substation premises, including but not limited to an electric substation and equipment associated therewith, attachments and appurtenant facilities, equipment for the transmission and distribution of electricity and for utility communication purposes and other uses consistent with the operation of an electric utility substation, including, but not limited to, above ground and underground wires, poles, breakers, bus, relay vault, towers, cables, conduits, fiber, anchors, guys, conveyance pipes related to the exfiltration system and equipment associated therewith, attachments and appurtenant equipment, transformers, buildings, fences, roads, driveway, trails, landscape and irrigation, attachments and equipment for electrical purposes, and other uses consistent with the operation of an electric utility substation (collectively, "Substation Facilities"), ("Intended Purpose"). FPL has agreed to compensate the City in the amount of Two Million Eight Hundred Thousand Dollars ($2,810,000) for the Easement Agreement. The City will grant a perpetual non-exclusive access road easement for access through the Property to the Substation Facilities, as more particularly described in Exhibit B, attached and incorporated ("Access Road Easement"). Granting the Easement Agreement and Access Road Easement is in the best interest of the City. Budget Impact Analysis Item is Related to Revenue Total Fiscal Impact: Total Fiscal Impact: $2,810,000 Department of Real Estate and Asset Management Review Completed Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division City Manager's Office City Commission Legislative Division Office of the City Attorney Office of the City Attorney Office of the Mayor Office of the City Clerk Office of the City Clerk Reviewed B 02/13/2025 6:50 AM Pedro Lacret Marie Gouin Larry M. Spring Natasha Colebrook -Williams Valentin J Alvarez Arthur Noriega V Maricarmen Lopez Valentin J Alvarez Jacqueline Lorenzo George K. Wysong III Mayor's Office City Clerk's Office City Clerk's Office Andrew Frey Department Head Budget Analyst Review Completed Budget Review Completed Assistant City Manager Completed Deputy City Manager Review Completed Legislative Division Review Completed City Manager Review Completed Meeting Completed Legislative Division Review Completed ACA Review Completed Approved Form and Correctness with Modification(s) Signed by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 02/13/2025 12:31 PM 02/13/2025 4:38 PM 02/14/2025 4:14 PM 02/14/2025 4:17 PM 02/18/2025 9:51 AM 02/18/2025 11:41 AM 02/27/2025 9:00 AM 03/04/2025 3:42 PM 03/04/2025 3:51 PM Completed 03/07/2025 1:18 PM 03/07/2025 1:24 PM 03/07/2025 1:35 PM City of Miami Legislation Resolution Enactment Number: R-25-0060 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 17244 Final Action Date:2/27/2025 A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S), BY A FOUR -FIFTHS AFFIRMATIVE VOTE, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A SUBSTATION EASEMENT AGREEMENT ("EASEMENT AGREEMENT"), IN A FORM ACCEPTABLE TO THE CITY ATTORNEY, BETWEEN THE CITY OF MIAMI ("CITY") AND THE FLORIDA POWER & LIGHT COMPANY, A FLORIDA PROFIT CORPORATION ("FPL"), FOR THE CONVEYANCE OF CERTAIN EASEMENTS ON PORTIONS OF THE CITY -OWNED PROPERTIES IDENTIFIED BY FOLIO NUMBERS 01- 3132-000-0090 AND 01-3132-000-0105, MIAMI, FLORIDA (COLLECTIVELY, "PROPERTY"), CONTAINING A COMBINED TOTAL SIZE OF APPROXIMATELY NINETY-THREE THOUSAND, FOUR HUNDRED FIFTY- NINE (93,459) SQUARE FEET, AS LEGALLY DESCRIBED IN COMPOSITE EXHIBIT "A," ATTACHED AND INCORPORATED, FOR THE CONSTRUCTION AND MAINTENANCE OF AN ELECTRIC SUBSTATION AND EQUIPMENT ASSOCIATED THEREWITH, ATTACHMENTS AND APPURTENANT FACILITIES, EQUIPMENT FOR THE TRANSMISSION AND DISTRIBUTION OF ELECTRICITY AND FOR UTILITY COMMUNICATION PURPOSES AND OTHER USES CONSISTENT WITH THE OPERATION OF AN ELECTRIC UTILITY SUBSTATION, INCLUDING, BUT NOT LIMITED TO, ABOVE GROUND AND UNDERGROUND WIRES, POLES, BREAKERS, BUS, RELAY VAULT, TOWERS, CABLES, CONDUITS, FIBER, ANCHORS, GUYS, CONVEYANCE PIPES RELATED TO THE EXFILTRATION SYSTEM AND EQUIPMENT ASSOCIATED THEREWITH, ATTACHMENTS AND APPURTENANT EQUIPMENT, TRANSFORMERS, BUILDINGS, FENCES, ROADS, DRIVEWAY, TRAILS, LANDSCAPE AND IRRIGATION, ATTACHMENTS AND EQUIPMENT FOR ELECTRICAL PURPOSES, AND OTHER USES CONSISTENT WITH THE OPERATION OF AN ELECTRIC UTILITY SUBSTATION (COLLECTIVELY, "SUBSTATION FACILITIES"); FURTHER AUTHORIZING THE CITY MANAGER TO INCLUDE IN SUCH EASEMENT AGREEMENT A PERPETUAL NON-EXCLUSIVE ACCESS ROAD EASEMENT FOR ACCESS TO THE SUBSTATION FACILITIES THROUGH THE PORTION OF THE PROPERTY CONTAINING A TOTAL SIZE OF APPROXIMATELY THREE HUNDRED FORTY-SEVEN THOUSAND, ONE HUNDRED SIXTY-NINE (347,169) SQUARE FEET, AS LEGALLY DESCRIBED IN EXHIBIT "B," ATTACHED AND INCORPORATED; FURTHER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS, INCLUDING AMENDMENTS AND MODIFICATIONS TO SAID EASEMENT AGREEMENT, INCLUDING BUT NOT LIMITED TO AGREEMENTS FOR TEMPORARY STAGING AREAS, ALL IN FORMS ACCEPTABLE TO THE CITY ATTORNEY, AS MAY BE NECESSARY TO EFFECTUATE THIS TRANSACTION; DISPENSING OF COMPETITIVE BIDDING PURSUANT TO CITY CODE SECTION 18-179 BASED UPON THE CITY MANAGER'S FINDINGS THAT COMPETITIVE BIDDING METHODS ARE FUTILE FOR THE REASON THAT ONLY ONE POSSIBLE BIDDER COULD BE CHOSEN, AS FURTHER DETAILED IN THE ATTACHED AND INCORPORATED EXHIBIT "C;" DECLARING CITY CODE SECTION 18-182(A) AS INAPPLICABLE; ACCEPTING AND ALLOCATING FUNDS RECEIVED IN EXCHANGE FOR THE CONVEYANCE OF SUCH EASEMENTS TO AN AUTHORIZED ACCOUNT YET TO BE DETERMINED, SUBJECT TO NECESSARY BUDGETARY APPROVALS. WHEREAS, the City of Miami ("City"), owns certain real property identified by Folio Nos. 01-3132-000-0090 and 01-3132-000-0105, Miami, Florida (collectively, "Property"); and WHEREAS, City and Miami Freedom Park, LLC, a Delaware limited liability company ("Tenant") entered into that certain Ground Lease for Soccer Stadium for the construction of a soccer stadium and ancillary facilities ("Stadium"), and that certain Ground Lease for Miami Freedom Park Commercial Development for the construction of various commercial improvements ("Commercial Development"), both of which are dated February 9, 2023; and WHEREAS, the City is currently in the process of constructing a new administrative headquarters, which shall be located within a portion of the Property ("New Administration Building); and WHEREAS, in order to ensure the efficient and effective operation of the Stadium, the Commercial Development, and the City's New Administrative Building, the City seeks to establish an electric substation within the Property; and WHEREAS, Florida Power & Light Company ("FPL") has requested that the City authorize the conveyance of various easements pursuant to a Substation Easement Agreement ("Easement Agreement") on certain portions of the Property, containing a combined total size of approximately ninety-three thousand, four hundred fifty-nine (93,459) square feet, as more particularly described in Exhibit "A," attached and incorporated, for the construction and maintenance of an electric substation, including but not limited to an electric substation and equipment associated therewith, attachments and appurtenant facilities, equipment for the transmission and distribution of electricity and for utility communication purposes and other uses consistent with the operation of an electric utility substation, including, but not limited to, above ground and underground wires, poles, breakers, bus, relay vault, towers, cables, conduits, fiber, anchors, guys, conveyance pipes related to the exfiltration system and equipment associated therewith, attachments and appurtenant equipment, transformers, buildings, fences, roads, driveway, trails, landscape and irrigation, attachments and equipment for electrical purposes, and other uses consistent with the operation of an electric utility substation (collectively, "Substation Facilities Easement"); and WHEREAS, FPL has further requested that the City grant a perpetual non-exclusive access road easement for access to the Substation Facilities through the portion of the Property containing a total size of approximately three hundred forty-seven thousand, one hundred sixty- nine (347,169) square feet, as legally described in Exhibit "B," attached and incorporated ("Access Road Easement"); and WHEREAS, in no event shall the authority to convey the easements contemplated herein be construed as an authority to convey a leasehold interest, fee simple interest, or any other interest greater than the easements for the limited purposes specified herein; and WHEREAS, FPL has agreed to compensate the City in the amount of Two Million, Eight Hundred Ten Thousand Dollars ($2,810,000.00) for the conveyance of the Substation Facilities Easement and Access Road Easement pursuant to the Easement Agreement ("Fee"); and WHEREAS, the City Manager has determined that conveyance of the Substation Facilities Easement and Access Road Easement to FPL is in the best interest of the City and that competitive bidding methods are futile for the reason that only one possible bidder could be chosen, as more particularly detailed in Exhibit "C", attached and incorporated ("Findings"); and WHEREAS, the City Manager recommends that competitive bidding be dispensed with based upon the Findings, pursuant to City Code Section 18-179; and WHEREAS, the City Manager further requests that the City Commission declare the restrictions contained in City Code Section 18-182(a) as inapplicable based upon the Findings, which must be ratified by an affirmative vote of two-thirds of the City Commission after a properly advertised public hearing; and WHEREAS, granting the Substation Facilities Easement and Access Road Easement to FPL in the manner contemplated herein is in the best interest of the City; 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 hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. The City Manager is hereby authorized1 to negotiate and execute the Easement Agreement for the conveyance of the Substation Facilities Easement and Access Road Easement, in a form acceptable to the City Attorney. Section 3. The City Manager is further authorized' to negotiate and execute all necessary documents, including amendments and modifications to said Easement Agreement, including but not limited to agreements for temporary staging areas, all in forms acceptable to the City Attorney, as may be necessary to effectuate this transaction. Section 4. Pursuant to City Code Section 18-179, the Findings are accepted, and competitive bidding is hereby dispensed with as only one possible bidder could be chosen. Section 5. The City Commission, by a four -fifths affirmative vote after a properly advertised public hearing, hereby declares City Code Section 18-182(a) as inapplicable based upon the Findings. Section 6. The City Commission authorizes the acceptance and allocation of the Fee in exchange for the conveyance of the Substation Facilities Easement and Access Road Easement to an authorized account yet to be determined, subject to necessary budgetary approvals. Section 7. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 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. 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, it shall become effective immediately upon override of the veto by the City Commission. APPROVED AS TO FORM AND CORRECTNESS: