HomeMy WebLinkAboutR-19-0438City of Miami
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Resolution: R-19-0438
File Number: 6660 Final Action Date: 11/12/2019
A RESOLUTION OF THE MIAMI CITY COMMISSION DENYING THE SPECIFIC
GROUND LEASE, MASTER DEVELOPMENT AGREEMENT, STADIUM LEASE,
AND NON -RELOCATION AGREEMENT, AND ALL OTHER ANCILLARY
AGREEMENTS ("LEASE"), BETWEEN THE CITY OF MIAMI ("CITY') AND
MIAMI FREEDOM PARK, LLC ("MFP") FOR APPROXIMATELY SEVENTY-
THREE (73) ACRES OF CITY -OWNED PROPERTY LOCATED GENERALLY
AT 1400 NORTHWEST 37TH AVENUE, MIAMI, FLORIDA 33125, COMMONLY
KNOWN AS MELREESE COUNTRY CLUB AND IDENTIFIED AS FOLIO
NUMBERS 01-3132-000-0080 AND 01-3132-000-0090 ("DEMISED
PROPERTY') WITH AN INITIAL TERM OF THIRTY-NINE (39) YEARS WITH
TWO (2) ADDITIONAL THIRTY (30) YEAR OPTIONS TO RENEW, FOR A
TOTAL TERM OF NINETY-NINE (99) YEARS, WITH AN ANNUAL BASE RENT
EQUAL TO THE GREATER OF (A) FAIR MARKET VALUE AS DETERMINED
BY STATE CERTIFIED APPRAISERS OR (B) FIVE PERCENT (5.0%) OF RENT
FROM THE RETAIL, OFFICE, AND HOTEL DEVELOPMENT WITHIN THE
DEMISED PROPERTY, BUT ANNUAL BASE RENT OF NO LESS THAN
THREE MILLION FIVE HUNDRED SEVENTY-SEVEN THOUSAND THREE
HUNDRED SIXTY-FIVE DOLLARS ($3,577,365.00), IN ADDITION TO A
CONTRIBUTION TO THE CITY OF TWENTY MILLION DOLLARS
($20,000,000.00) PAYABLE OVER THIRTY (30) YEARS IN ANNUAL
INSTALLMENTS, AND ANY RENT INCREASES AND/OR ADDITIONAL RENTS
NEGOTIATED BY THE PARTIES AS PRESENTED TO THE CITY
COMMISSION; AUTHORIZING THE USE OF THE DEMISED PROPERTY FOR
A SOCCER STADIUM, ENTERTAINMENT CENTER, INCLUDING FOOD AND
BEVERAGE VENUES, OFFICES, RETAIL, HOTEL, AND CONFERENCE
CENTER, AND OTHER ANCILLARY COMMERCIAL DEVELOPMENT, WITH A
MAXIMUM HEIGHT NOT TO EXCEED FEDERAL AVIATION
ADMINISTRATION AEROSPACE OBSTRUCTION STANDARDS, WITH
RESTRICTIONS, REVERSIONS, AND RETENTION BY THE CITY OF ALL
OTHER RIGHTS, GUARANTEEING A LIVING WAGE FOR ALL ON-SITE
EMPLOYEES; FURTHER REQUIRING MFP TO UNDERTAKE THE
REMEDIATION AND SITE DEVELOPMENT FOR A PUBLIC PARK OF
APPROXIMATELY FIFTY-EIGHT (58) ACRES, AT NO COST TO THE CITY, TO
BE DEVELOPED ON PROPERTY ADJACENT TO THE DEMISED PROPERTY
("NEW PARK"); PROVIDING FOR NO NET LOSS OF PARK SPACE TO THE
CITY; PROVIDING PROFIT SHARING TO THE CITY IN THE FORM OF
NAMING RIGHTS, ADVERTISING, TELEVISION RIGHTS, SALE OR
ASSIGNMENT, AND THE LIKE; PROVIDING FOR AN IMMEDIATE EFFECTIVE
DATE.
SPONSOR(S): Commissioner Manolo Reyes
WHEREAS, the City of Miami ("City") and Miami Freedom Park, LLC ("MFP") desire to
negotiate and enter into a Ground Lease, Master Development Agreement, Stadium Lease, and
City of Miami Page 1 of 4 File ID: 6660 (Revision: A) Printed On: 11/26/2019
File ID: 6660 Enactment Number: R-19-0438
other ancillary lease agreements ("Lease") for the development of approximately seventy-three
(73) acres of City -owned property located generally at 1400 Northwest 37th Avenue, Miami,
Florida 33125, commonly known as Melreese Country Club and identified as folio numbers 01-
3132-000-0080 and 01-3132-000-0090 ("Demised Property") for an initial term of thirty-nine (39)
years with two (2) additional thirty (30) year options to renew; and
WHEREAS, at the November 6, 2018 Special Election, City voters approved an
amendment to the Charter of the City of Miami, Florida, as amended ("City Charter'), by over
sixty percent (60%) to amend Section 29-B of the City Charter and authorizing the City
Commission to negotiate and execute a ninety nine (99) year lease with MFP for approximately
seventy three (73) acres of City -owned land; waiving competitive bidding; converting the
Demised Property, at no cost to the City, for a soccer stadium with a minimum of 1,000,000
square feet of office, retail, and commercial uses; a minimum of 750 hotel rooms; providing for a
living wage for on-site employees; and for a minimum rent of $3,577,365.00 and a twenty million
dollar ($20,000,000) contribution to the City for a fifty-eight (58) acre public park or other green
space ("New Park") ("Project"); and
WHEREAS, the City Commission at its meeting on March 14, 2019, adopted Resolution
No. 19-0117 and expressed an interest in being advised of and selecting all outside consultants,
law firms, real estate appraisers or brokerage firms, surveyors, mappers, and any other vendor,
contractor, and provider for the Project; and
WHEREAS, pursuant to the above, the City Commission authorized the engagement of
Shutts and Bowen, LLP ("Outside Counsel") as the City's Outside Counsel in matters related to
negotiations with MFP regarding the development of the Demised Property; and
WHEREAS, pursuant to the amendment of the City Charter, MFP shall pay the City an
annual minimum base rent equal to the greater of (a) fair market value as determined by state
certified appraisers or (b) five percent (5.0%) of rent from the retail, office, and hotel
development within the Demised Property, whichever is greater, but with an annual base rent of
no less than three million five hundred seventy-seven thousand three hundred sixty-five dollars
($3,577,365.00); and
WHEREAS, in addition to the annual rent, MFP will provide the City with a Twenty
Million Dollar ($20,000,000.00) contribution payable over thirty (30) years in equal annual
installments for the New Park; and
WHEREAS, the financial return to the City shall meet or exceed fair market value
through a minimum rent, profit sharing, or other similar financial contribution from MFP to the
City; and
WHEREAS, MFP's proposed Project design includes a state-of-the-art professional
soccer complex including a twenty-five thousand (25,000) seat stadium and related facilities on
approximately ten and one half (10.5) acres of the Demised Property; and
WHEREAS, the Project is expected to include Ancillary Development, including, but not
limited to, four hundred thousand (400,000) square feet of office space; six hundred thousand
(600,000) square feet of food, beverage, art, music, entertainment -related, and retail uses; at
least seven hundred fifty (750) hotel rooms; twenty thousand (20,000) square feet of conference
space; guaranteeing a living wage for all on-site employees; and a parking facility with platform
covered by a green roof including multiple publicly available soccer pitches; and
City of Miami Page 2 of 4 File ID: 6660 (Revision: A) Printed on: 11/26/2019
File ID: 6660
Enactment Number: R-19-0438
WHEREAS, MFP will undertake the remediation and site development for the New Park
to be developed on the property adjacent to the Demised Property at MFP's sole cost; and
WHEREAS, the City will not expend any funds for the remediation of the Demised
Property or the New Park and MFP will be solely responsible for all environmental remediation
of the Demised Property and New Park; and
WHEREAS, nothing shall preclude MFP from obtaining any tax credits or other
economic incentives from federal or state remediation programs; and
WHEREAS, the Lease shall comply with all federal, state, and municipal laws, rules, and
regulations; and
WHEREAS, the City Commission has determined that the Lease and 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 Commission hereby denies the Lease between the City and MFP
for the Demised Property with an initial term of thirty-nine (39) years with two (2) additional thirty
(30) year options to renew, for a total term of ninety-nine (99) years, with an annual base rent
equal to the greater of (a) fair market value as determined by state certified appraisers or (b)
five percent (5.0%) of rent from the retail, office, and hotel development within the Demised
Property, but annual base rent of no less than three million five hundred seventy-seven
thousand three hundred sixty-five dollars ($3,577,365.00), in addition to a contribution to the
City of twenty million dollars ($20,000,000.00) payable over thirty (30) years in annual
installments, and any rent increases and/or additional rents negotiated by the parties as
presented to the City Commission; authorizing the use of the Demised Property for a soccer
stadium, entertainment center including food and beverage venues, offices, retail, hotel and
conference center, and other ancillary commercial development with a maximum height not to
exceed federal aviation administration aerospace obstruction standards, with restrictions,
reversions, and retention by the City of all other rights, guaranteeing a living wage for all on-site
employees; further requiring MFP to undertake the remediation and site development for the
New park currently used for the Melreese Country Club.
Section 3. This Resolution shall become effective immediately upon its adoption and
signature of the Mayor.'
' 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 3 of 4 File ID: 6660 (Revision: A) Printed on: 11/26/2019
File ID: 6660
APPROVED AS TO FORM AND CORRECTNESS:
1
ria ' ndez, Cify Attor iey ___) 11/25/2019
Enactment Number: R-19-0438
City of Miami Page 4 of 4 File ID: 6660 (Revision: A) Printed on: 1112612019