This referral item has been prepared at the request of Commissioner Ricky Arriola.
In 1983, the Mayor and City Commission adopted Resolution No. 83-17385, approving a lease agreement for the operation and maintenance of the Miami Beach Marina and the upland property located at 300 Alton Road, to be used solely as a boat port, marina and recreation facility offering dockage, mooring and other marina related services for use by the general public (the “Miami Beach Marina”), which lease has been amended on four separate occasions over the years, with the most recent amendment being executed in 1998, over 22 years ago (collectively, as amended, the “Marina Lease” or “Lease”).
The current lessee is Miami Beach Marina Associates, Ltd. (the “Lessee”). The Lease provides for an initial term expiring January 1, 2022, and provides the Lessee with the right to renew three (3) times, for a period of ten (10) years for each renewal term.
The Lessee has proposed undertaking a redevelopment project for the Miami Beach Marina, to include major improvements to the upland property at 300 Alton Road and the associated baywalk, as well as significant enhancements to the Miami Beach Marina facilities, which will include green space elements and address resiliency, sea level rise and other needed capital improvements.
The proposal would involve a modification and extension of the Lease (including the term of the Lease), as well as a proposed sale of the air rights above the upland portion of the leased premises, for development of a mixed use project, to include residential, retail and commercial uses. Accordingly, the proposal would “reopen” the Lease – which has not been amended in over 20 years -- for re-negotiation, and thereby provide the City Commission with the opportunity to upgrade the Marina facilities and baywalk area, increase the revenues the City receives under the Lease, and obtain other public benefits in consideration for the proposed transaction. The foregoing would be subject to an independent third-party appraisal of the various components of the transaction, and negotiation of additional revenues and other public benefits to be provided to the City as part of the transaction, to be reviewed by the Finance and Economic Resiliency Committee, and ultimately, by the City Commission, following two readings and public hearings.
This referral initiates the review process under Chapter 82 of the City Code with respect to the sale or lease of City-owned property. If the proposed transaction is approved by the City Commission, the project would require approval by a majority of the voters voting in a Citywide referendum, pursuant to Section 1.03(b)(1) of the City Charter.