HomeMy WebLinkAboutR-17-0594City of Miami
Legislation
Resolution R-17-0594
File Number: 3337
City Hall
3500 Pan American Drive
Miami, FL 33133
www.miamigov.com
Final Action Date: 12/14/2017
A RESOLUTION OF THE MIAMI CITY COMMISSION, WITH ATTACHMENT(S),
OFFICIALLY ACKNOWLEDGING THE CITY CLERK'S CERTIFICATION OF
THE RESULTS OF THE REFERENDUM SPECIAL ELECTION HELD ON
NOVEMBER 7, 2017, AS APPROVED PURSUANT TO RESOLUTION NO. 17-
0575 ADOPTED DECEMBER 14, 2017, FOR A CHARTER AMENDMENT
AMENDING THE CHARTER OF THE CITY OF MIAMI, FLORIDA, AS
AMENDED ("CHARTER") BY AMENDING SECTION 29-B OF THE CHARTER,
ENTITLED "CITY -OWNED PROPERTY SALE OR LEASE -GENERALLY", TO
AUTHORIZE THE CITY MANAGER BY A FOUR-FIFTHS (4/5THS)
AFFIRMATIVE VOTE OF THE CITY COMMISSION ("COMMISSION") TO
WAIVE COMPETITIVE BIDDING AND TO EXECUTE A FIFTH AMENDMENT
("FIFTH AMENDMENT") TO THE LEASE AGREEMENT ("LEASE") BETWEEN
THE CITY OF MIAMI ("CITY") AND ALIGNED BAYSHORE MARINA, LLC
("BAYSHORE MARINA"), ALSO KNOWN AS MONTY'S, FOR CITY -OWNED
WATERFRONT PROPERTY LOCATED AT 2550 SOUTH BAYSHORE DRIVE,
MIAMI, FLORIDA ("PROPERTY"), TO EXTEND THE CURRENT LEASE TERM
BY AN ADDITIONAL TERM OF APPROXIMATELY THIRTY-TWO (32) YEARS
(TO EXPIRE MAY 31, 2067) WITH TWO (2) ADDITIONAL TEN (10) YEAR
OPTIONS TO RENEW FOR A TOTAL TERM OF FIFTY TWO (52) YEARS (TO
EXPIRE MAY 31,2087); AN ADDITIONAL MINIMUM RENT PAYMENT OF
TWO HUNDRED THOUSAND DOLLARS ($200,000.00) PER LEASE YEAR (A
MINIMUM OF TEN MILLION DOLLARS [$10,000,000.00] OVER THE BASE
TERM OF THE AMENDED LEASE) OR ONE AND THREE QUARTERS
PERCENT (1.75%) OF GROSS RENT RECEIPTS FROM THE PROPERTY,
WHICHEVER IS GREATER, AS ADDITIONAL RENT DUE TO THE CITY AND,
COMMENCING JANUARY 1, 2019, MINIMUM ANNUAL TOTAL RENT
(INCLUSIVE OF THE ADDITIONAL MINIMUM RENT) SHALL BE ONE MILLION
FIVE HUNDRED THOUSAND DOLLARS ($1,500,000.00), PLUS AN
ADDITIONAL TWENTY FIVE THOUSAND DOLLARS ($25,000.00) TO BE PAID
ON AN ANNUAL BASIS FOR THE FULL AMENDED TERM TO A SPECIAL
FUND TO BE ESTABLISHED BY THE CITY FOR THE BENEFIT OF LOW
INCOME HOUSING RENOVATION; FURTHER PROVIDING CAPITAL
IMPROVEMENTS TO THE PROPERTY OF A MINIMUM OF SEVEN MILLION
FIVE HUNDRED THOUSAND DOLLARS ($7,500,000.00) TO BE SPENT
WITHIN THREE (3) YEARS OF THE ELECTORATE'S APPROVAL OF THE
FIFTH AMENDMENT TO THE LEASE; THE CREATION OF A CAPITAL
ACCOUNT REQUIRING A MINIMUM ADDITIONAL INVESTMENT IN THE
PROPERTY OF FOUR MILLION DOLLARS ($4,000,000.00) OVER THE TOTAL
AMENDED LEASE TERM INCLUSIVE OF THE RENEWAL OPTIONS;
REQUIRING A TRANSFER FEE PAYMENT TO THE CITY IF THE PROPERTY
IS TRANSFERRED OR ASSIGNED; AND FURTHER REQUIRING A
REFINANCING FEE PAYMENT TO THE CITY SHOULD THE PROPERTY BE
REFINANCED AFTER THE INITIAL REFINANCING; AND PURSUANT TO
City of Miami Page 1 of 4 File ID: 3337 (Revision: A) Printed On: 3/14/2018
File ID: 3337 Enactment Number: R-17-0594
SECTION 29-B OF THE CHARTER, ENTITLED "CITY OWNED PROPERTY
SALE OR LEASE -GENERALLY," AND SUBPART A, SECTION 3(F)(III),
ENTITLED "POWERS," TWO (2) INDEPENDENT APPRAISALS HAVING BEEN
OBTAINED BY THE CITY AFFIRMING FAIR MARKET VALUE OF THE
PROPERTY; ACKNOWLEDGING THE CITY'S SEPARATE AUTHORIZATION
BY RESOLUTION NO. 17-0323 ADOPTED JULY 13, 2017 OF THE CITY'S
RELATED MODIFICATION OF SUBMERGED LANDS LEASE AND WAIVER OF
DEED RESTRICTIONS REQUIRED WITH THE STATE OF FLORIDA, BOARD
OF TRUSTEES OF THE INTERNAL IMPROVEMENT TRUST FUND, AND
OTHER RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF
ALL OTHER RIGHTS.
WHEREAS, the City of Miami ("City") is the owner of the waterfront property located at
2550 South Bayshore Drive, Miami, Florida ("Property"); and
WHEREAS, pursuant to the Lease Agreement originally dated September 20, 1985, as
supplemented and amended ("Lease"), Aligned Bayshore Marina LLC ("Bayshore Marina")
currently leases the Property, also known as Monty's, from the City; and
WHEREAS, the City and Bayshore Marina desire to enter into a Fifth Amendment to the
Lease which will extend the current lease term by an additional term of approximately thirty-two
(32) years (to expire May 31, 2067) with two (2) ten (10) year options to renew for a total term of
fifty-two (52) years (to expire May 31, 2087); increase minimum rent payment by an additional
two hundred thousand dollars ($200,000.00) per lease year for a minimum of ten million dollars
($10,000,000.00) over the base term of fifty (50) years or one and three quarters percent
(1.75%) of gross rent receipts from the Property, whichever is greater, as additional rent due to
the City, and commencing January 1, 2019, minimum annual total rent (inclusive of the
additional minimum rent) shall be one million five hundred thousand dollars ($1,500,000.00),
plus an additional twenty five thousand dollars ($25,000.00) to be paid on an annual basis for
the full amended term to a special fund to be established by the City for the benefit of low
income housing renovation; further providing capital improvements to the Property of a
minimum of seven million five hundred thousand dollars ($7,500,000.00) to be spent within
three (3) years of the electorate's approval of the Fifth Amendment to the Lease; further creating
a capital account requiring a minimum additional investment in the Property of four million
dollars ($4,000,000.00) over the total amended Lease term inclusive of the renewal options;
requiring a Transfer Fee payment to the City if the Property is transferred or assigned; and
further requiring a Refinancing Fee payment to the City should the Property be refinanced after
the initial refinancing; and
WHEREAS, of the additional rent due to the City generated annually by this Lease, the
City will donate one half of one percent (0.5%) of these revenues towards the same special fund
to be established by the City for the benefit of low income housing renovation; and
WHEREAS, pursuant Section 29-B of the Charter of the City of Miami, Florida, as
amended, ("Charter"), entitled "City Owned Property Sale or Lease -Generally", and Subpart A,
Section 3(f)(iii), entitled "Powers", the City has received two (2) independent appraisals affirming
the fair market value of the Property; and
WHEREAS, in a separate but related matter, (1) the City Commission on July 13, 2017
adopted Resolution No. 17-0323 authorizing the City Manager to negotiate and execute the
required Modification of Submerged Lands Lease ("Submerged Lands Lease") and Waiver of
Deed Restrictions ("State Waiver") with the State of Florida, Board of Trustees of the Internal
City of Miami Page 2 of 4 File ID: 3337 (Revision: A) Printed on: 3/14/2018
File ID: 3337 Enactment Number: R-17-0594
Improvement Trust Fund ("State") for the submerged lands areas related to the Property
("Submerged Lands"), (2) the State has previously acknowledged Bayshore Marina's Lease with
the City, Bayshore Marina's subleasing of the Submerged Lands, and improvements
contemplated to be undertaken by Bayshore Marina on the Submerged Lands, and (3) once the
City and the State have executed the Submerged Lands Lease and the State Waiver, the City
and Bayshore Marina will execute the related sublease for the Submerged Lands with required
restrictions, reversions, and retention by the City of all other rights; and
WHEREAS, the City Commission ("Commission") has determined that the Fifth
Amendment to the Lease is in the City's best interest; and
WHEREAS, on November 6, 2017, qualified electors of the City voted in a Referendum
Special Election authorizing the Commission by a four-fifths (4/5ths) affirmative vote to waive
competitive bidding and to proceed with execution of the Fifth Amendment to the Lease; and
WHEREAS, the Commission officially acknowledged the City Clerk's certification of the
results of the Referendum Special Election held on November 7, 2017, as approved pursuant to
Resolution No. 17-0575 adopted December 14, 2017;
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. Pursuant to the City Clerk's certification of the results of the Referendum
Special Election held on November 7, 2017 as approved pursuant to Resolution No. 17-0575
adopted December 14, 2017, the City Manager is hereby authorized by a four-fifths (4/5ths)
affirmative vote of the Commission to waive competitive bidding and to execute a Fifth
Amendment to the Lease between the City and Bayshore Marina for the Property extending the
current Lease term by an additional term of approximately thirty two (32) years (to expire May
31, 2067) with two (2) additional ten (10) year options to renew for a total term of fifty two (52)
years (to expire May 31, 2087); for an additional payment of two hundred thousand dollars
($200,000.00) per Lease year (a minimum of ten million dollars [$10,000,000.00] over the base
term of the amended Lease) or one and three quarters percent (1.75%) of gross rent receipts
from the Property, whichever is greater, as additional rent due to the City and, commencing
January 1, 2019, minimum annual total rent (inclusive of the additional minimum rent) shall be
one million five hundred thousand dollars ($1,500,000.00), plus an additional twenty five
thousand dollars ($25,000.00) to be paid on an annual basis for the full amended term to a
special fund to be established by the City for the benefit of low income housing renovation;
further providing capital improvements to the Property of a minimum of seven million five
hundred thousand dollars ($7,500,000.00) to be spent within three (3) years of the electorate's
approval of the Fifth Amendment to the Lease; the creation of a capital account requiring a
minimum additional investment in the Property of four million dollars ($4,000,000.00) over the
total amended Lease term inclusive of the renewal options; requiring a transfer fee payment to
the City if the Property is transferred or assigned; and further requiring a refinancing fee
payment to the City should the Property be refinanced after the initial refinancing.
Section 3. Pursuant to Section 29-B of the Charter, entitled "City owned property sale
or lease — Generally" and Subpart A, Section 3(f)(iii), entitled "Powers", receipt of two (2)
independent appraisals obtained by the City affirming the fair market value of the Property is
hereby acknowledged.
City of Miami Page 3 of 4 File ID: 3337 (Revision: A) Printed on: 3/14/2018
File ID: 3337
Enactment Number: R-17-0594
Section 4. The City's separate authorization by Resolution No. 17-0323 adopted July
13, 2017 for the City's related modification of the submerged lands lease and waiver of deed
restrictions required with the State of Florida, Board of Trustees of the Internal Improvement
Trust Fund, and other restrictions, reversions, and retention by the City of all other rights is
hereby acknowledged.
Section 5. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.'
APPROVED AS TO FORM AND CORRECTNESS:
1
i ria i �-ndez, City Httor ey 12120/2017
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.
City of Miami Page 4 of 4 File ID: 3337 (Revision: A) Printed on: 311412018