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HomeMy WebLinkAboutAgenda Item Cover PageAGENDA ITEM COVER PAGE °1A1t° File ID: #6660 3 AA F Resolution Sponsored bv: Commissioner Manolo Reves 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. File Number: 6660 City of Miami Legislation Resolution Enactment Number: R-19-0438 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com 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. 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 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 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.' APPROVED AS TO FORM AND CORRECTNESS ' 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.