MME v. CMB Case #19-8157CA27_Settlement EXECUTEDSETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS
This Settlement Agreement and Release (the "Agreement") is made and entered
into this 3 1)-1h day of March, 2021 by MME Florida, LLC, a Florida limited liability
company ("Plaintiff'), and the City of Miami Beach, a Florida municipal corporation ,
hereinafter referred to as ("City "). Plaintiff and the City may also be referred to ,
collectively, as the "Parties". The Parties agree and stipulate to the following:
RECITALS
1. The purpose this Agreement is to facilitate the settlement, dismissal (with
prejudice), and release of any and all claims which were asserted, or which could
have been asserted, with respect to the facts giving rise to MME Florida, LLC v.
City of Miami Beach, Case No. 2019-008157-CA-27, a lawsuit currently pending
in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County ,
Florida (the "Lawsuit").
2 . On September 25, 2017, the Mayor and the City Commission of the City of Miami
Beach (the "City Commission") enacted Ordinance No. 2017-4133 (the "2017
Dispensary Ordinance"), which established specific regulations for medical
cannabis treatment centers (dispensaries) and pharmacy stores set forth in
Sections 142-1500 through 142-1505 of the City of Miami Beach Code of Laws
and Ordinances (the "City Code").
3 . On August 22, 2018, in reliance on the City 's 2017 Dispensary Ordinance, Plaintiff
executed a ten (10) year lease contract with the current owner of the structure
located at 1428 Alton Road (the "Premises"), with the intent to utilize it as a medical
marijuana dispensary.
4. On December 18, 2018, the City's Planning Board proposed and favorably
recommended the enactment of a new ordinance, under file No. PB 18-0249 (the
"Proposed Ordinance") that would prohibit the development and operation of
pharmacies and dispensaries within three hundred (300) feet of another pharmacy
or dispensary.
5 . The Planning Board's favorable recommendation of the Proposed Ordinance
created a moratorium under Section 118-168 of the City Code, precluding Plaintiff
with moving forward with its incomplete application for a building permit for its
medical marijuana dispensary .
6 . The City's Building Department notified Plaintiff that its final bui lding pe rmit would
not be granted because the City had already approved another dispensary's
building permit for a location less than three-hundred (300) feet of the Premises.
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
7. The City Commission adopted the Proposed Ordinance (Ordinance No . 2019-
4247) on February 13, 2019. The Proposed Ordinance became effective on
February 23, 2019 .
8 . Plaintiff served the City with a four-count Complaint (the "Complaint") on March
27, 2019, alleging equitable estoppel, and seeking declaratory or injunctive relief
based on alleged violations of Sections 166.041 and 381 .986 of the Florida
Statutes.
9 . Specifically, Plaintiff attempted to challenge the statutory validity of Ordinance No.
2019-4247 (hereinafter referred to as the "2019 Dispensary Ordinance"), which
created a distance separation requirement of 1,200 feet between individual
medical cannabis dispensaries, as well as seek equitable relief.
10. Plaintiff sought to challenge the 2019 Dispensary Ordinance by alleging that (1) it
was improperly enacted under §166 .041 of the Florida Statutes due to a motion to
increase the distance separation requirement to 1,200 feet on the second and final
public reading; and (2) the 1,200 feet separation requirement between the
dispensaries within the City violates §381.986 of the Florida Statutes, which
prohibits municipalities from placing specific limits on the number of dispensing
facilities that may be located within the municipality.
11 . Plaintiff also sought to assert a claim of equ itable estoppel, alleging that it relied
on the City 's actions and existing ordinances in good faith; that the 2019
Dispensary Ordinance unlawfully deprived Plaintiff of its vested rights; and that
Plaintiff incurred substantial expenditures in developing its future dispensary p ri or
to the enactment of the Ordinance.
12 . The City denies all the allegations of the Lawsu it and specifically denies that it has
any liability based on the allegations set forth in the Lawsuit, and Plaintiff has any
vested right in the Premises.
13. The Parties have reached an agreement as to the Lawsuit and desire to fully and
finally resolve any and all claims and/or disputes against each other and their
respective agents, employees, officers, independent contractors , servants, and
representatives concerning, relating to, or in any way arising out of the Lawsuit.
14. The Parties desire to enter into this Agreement to provide, among other things , for
consideration in full settlement and discharge of all claims and actions of Plaintiff
for damages that allegedly arose out of, or due to, the facts and circumstances
giving rise to the Lawsuit, on the terms and conditions set forth in this Agreement.
NOW, THEREFORE, based on the above and in consideration of mutual
covenants and other va luable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree to the following :
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
1. Recitals: the foregoing recitals are true and correct and are incorporated herein .
2. Settlement: The Parties hereby settle and compromise all claims of any kind or
nature (including any claims for attorney's fees and costs), relating to, arising out
of and/or in connection with or enactment of the Ordinance No. 2017-4133 and
Ordinance No . 2019-4247.
3 . Settlement Terms: In consideration for the releases executed herein, the Parties
agree as follows:
a. The Plaintiff has executed a ten (10) year Lease Agreement on the
Premises, expended substantial financial resources toward the site
development in detrimental reliance upon the City's existing zoning
regulations, in conjunction with other unique, factual , and procedural
circumstances surrounding this matter. Recognizing the existence and
application of those legal principles in Florida's equitable estoppel law in
regards to the City's enforcement of the medical marijuana dispensary
distance separation requirement mandated by Ordinance 2019-4247 , the
Parties affirmatively acknowledge that Plaintiff's use of the Premises will be
permitted as a legal nonconforming use.
b. Plaintiff affirmatively promises that upon approval of th is Settlement
Agreement, Plaintiff will submit its building permit application and
renovations of the medical marijuana dispensary at 1428 Alton Road, Miami
Beach Florida, 33139, within thirty {30) to forty-five (45) days of the
execution of this Agreement. Plaintiff further affirmatively promises that it
will open and be operational within twelve (12) months after the issuance of
a building permit for interior build out and medical marijuana dispensary
use, subject to any delays caused by the City in completing the inspections
necessary to finalize the building permit and issue a Certificate of
Occupancy/Completion for the renovations and change of use. In the event
Plaintiff is unable to commence business operations within the twelve {12)
month period, Plaintiff may seek to extend the compliance period set forth
herein upon written request to the City, establishing that Plaintiff used
diligent and commercially reasonable efforts to move forward with
commencing business operations . The City agrees that it shall use all
reasonable efforts to expedite the review and approval of Plaintiff's designs
and plans required for issuance of any and all permit(s) in order for Plaintiff
to commence construction and use of the Premises. The City further agrees
that it will extend the compliance period set forth herein upon Plaintiff
showing , in writing, that it took all commercially reasonable efforts to
commence business operations within twelve (12) months, and any
resulting delay was outside of its control.
c. Plaintiff will undertake commercially reasonable efforts to not allow , permit.
condone, excuse, ignore, disregard, overlook, authorize , or tolerate crowds
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
queuing outside the Property and blocking pedestrian traffic or neighboring
businesses. Plaintiff shall implement measures to shorten waiting lines
outside the marijuana dispensary such as virtual check-ins/queues and/or
accepting ord~rs and payment via telephone or Internet to limit the number
of patrons in store.
d. Plaintiff shall utilize no more than 62% of the total available square footage
inside the Premises for sale of medical cannabis and any other products
related to it.
e. Plaintiff shall not authorize or permit any type of consumption of any
cannabis products on the Premises.
f. Plaintiff shall not sell any devices, apparatuses, or material used for
consumption or inhaling of cannabis, except marijuana delivery devices
permitted to be sold from marijuana dispensing facilities pursuant to Florida
Department of Health regulations and/or Florida Statute.
g. The final transaction of purchase of cannabis products must be
accomplished inside the Premises without exceptions. Any sales made for
delivery to an eligible patient from the Premises as permitted pursuant to
Florida law shall be deemed to have been accomplished inside the
Premises.
h. Plaintiff shall ensure adequate parking in accordance with Section 142-
1503 of the City Code and any other applicable City regulations.
i. Plaintiff shall not be permitted to offer curb side pick-ups or drive-thru
services for any cannabis products in accordance with Section 142-1503 of
the City Code and any other applicable City regulations.
j. Plaintiff shall take immediate and necessary measure to ensure and prevent
any armed security from being visible and identifiable outside the Premises
to maintain non-threatening posture of the business.
k. Plaintiff shall ensure that signage visible from public rights-of-way and
adjacent establishments and parcels shall be limited to the name of the
establishment and signs necessary to comply with the requirements of the
State of Florida, Miami-Dade County, and the City of Miami Beach and will
not contain any symbol or outline of a cannabis leaf, or any other cannabis
related products or symbols.
I. Under no circumstances shall activities related to sales of cannabis,
cannabis derivatives, cannabis delivery devises, cannabis-infused products
and pharmaceutical products be visible from the exterior of the business in
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
accordance with Section 142-1503 of the City Code and any other
applicable City regulations.
m. Depictions of cannabis, cannabis products and pharmaceutical products
shall not be visible from public rights-of-way and adjacent establishments
and parcels in accordance with Section 142-1503 of the City Code and any
other applicable City regulations.
n. Plaintiff affirmatively acknowledges that the City, by and through Code
Enforcement or Police Department will be permitted to conduct appropriate
and necessary inspections of the Premises to confirm compliance with the
terms of this Settlement Agreement.
o. Except as set forth herein, Plaintiff affirmatively recognizes and
acknowledges that it must comply with all other applicable provisions of
City's Medical Marijuana Ordinance and any other applicable requirements
set forth in the City Code and Land Development Regulations.
p. In the event Section 142-1503 of the City Code and/or any other applicable
City regulations related to the restrictions set forth herein are modified so
that they are no longer requirements or restrictions for medical cannabis
treatment centers or providers of adult use cannabis (if legally permitted in
the future) in the City of Miami Beach, then such requirements or restrictions
in this Settlement Agreement shall cease to be in force and effect.
4. Releases. In further consideration of the execution of this Agreement, the Parties
for themselves and their respective parent companies, subsidiaries, divisions,
affiliates, unit owners, insurers, officers, directors, agents, employees,
subcontractors, representatives, successors and assigns (the "City Releasors" or
"Plaintiff Releasors" as the case may be), hereby execute, subject to the conditions
and exclusions set forth in this Agreement, the following Releases:
a. Release by the Plaintiff. Upon execution of this Settlement, Plaintiff
Releasors hereby remise, release, acquit, satisfy and forever discharge the
City Releasors, which throughout this Agreement includes, but is not limited
to, the City, its affiliates, Commissioners, insurers, sureties, directors,
officers, employees, contractors, consultants, agents and attorneys,
together with its heirs, executors, administrators, associates,
representatives, successors and assigns, of and from any and all manner
of past, present and future claims, actions, suits, debts, dues , sums of
money, accounts, reckonings, bonds, bills, specialties, covenants,
contracts, controversies, agreements, promises, variances, trespasses,
obligations, damages, judgments, costs, expenses, causes of action,
executions, claims, liabilities, and demands whatsoever, in law or in equity,
whether for compensatory, punitive, or other damages (collectively referred
to in this Paragraph as the "Claims"), which the Plaintiff Releasors have held
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME. FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
or now hold, ever had, now have , or which the Plaintiff Releasors ,
hereinafter can, shall or may have against the City Releasors, for any and
all Claims, whether known or unknown , arising from , pertaining to and/or in
any way relating to the underlying matter.
b. Release by the City. The City Releasors hereby remise, release, acquit ,
satisfy and forever discharge the Plaintiff Releasors, which throughout this
Agreement includes, but is not limited to, the Plaintiff, its parents, partners ,
shareholders, principals, contractors, affiliates, insurers, sureties, directors,
officers, employees, agents and attorneys , together with its heirs,
executors, administrators, associates, representatives , successors and
assigns, of and from any and all manner of past , present and future claims,
actions, suits, debts, dues, sums of money, accounts , reckonings, bonds,
bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, obligations , damages, judgments, costs,
expenses, causes of action, executions, claims and liabilities , and demands
whatsoever, in law or in equity, whether for compensatory, punitive, or other
damages (collectively referred to in this Paragraph as the "Claims "), which
the City Releasors have held or now hold, ever had , now have , or which the
City Releasors, hereinafter can, shall or may have against the Plaintiff
Releasors, for any and all Claims, whether known or unknown, arising from,
pertaining to and/or in any way re lating to this matter, and more specifically ,
the claims raised in the Complaint.
5. Covenant Not to Sue. The Parties agree to not instigate, raise, or pursue any
complaint or action concerning any other Party or their past, present , and future
shareholders , directors, officers, employees, principals, agents, servants,
independent contractors, representatives, parent corporations, subsidiary
corporations, predecessors, successors, assigns, attorneys, and insurers , w ithin
any Florida State Jurisdiction or governmental agency which may maintain
jurisdiction of these disputed issues.
6. Dismissal of the Lawsuit. The Parties agree that within thirty (30) days after the
full execution of this Settlement Agreement, the Plaintiff shall file the appropriate
pleading(s) that result in the dismissal with prejudice surrounding all claims,
allegations or challenges set forth in the Plaintiffs Lawsuit, MME Florida , LLC v.
City of Miami Beach, Case No.2019-008157-CA-27, and without recovery of
attorney's fees or costs, inclusive of all claims asserted .
7. Noncompliance. Should the Plaintiff, in the opinion of the City , fail to comply with
those provisions set forth within Paragraph 3 herein ("Settlement Terms"), the City
will be entitled to pursue or initiate a legal action for a temporary or permanent
injunction against Plaintiff to enforce those terms. The Plaintiff hereby expressly
acknowledges and affirms that they are voluntarily waiving any defense to the
enforceability of Paragraph 3. The Plaintiff expressly acknowledge that the City
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
will seek injunctive relief through a proceeding before the Circuit Court of the
Eleventh Judicial Circuit of Florida.
8. Predecessors, Successors, and Assigns. The Parties hereby release, acquit,
and forever discharge each other and their past, present , and future shareholders,
directors, officers , employees , principals, agents , servants, independent
contractors, representatives, parent corporations, subsidiaries, affiliates,
predecessors, successors, assigns, attorneys, and insurers from any and all
actions, causes of action, claims, counterclaims, demands, damages, fines ,
penalties, assessments, costs, loss of services, expenses , interest, attorneys' fees
and compensation whatsoever, in any way relating to, or arising out of the Lawsuit,
and all other matters defined and/or described herein, whether known or unknown ,
accrued or unaccrued, asserted or unasserted.
9. Legal Fees and Costs. Other than as may be set forth in th is Agreement , each
party shall bear their own attorneys' fees and other costs, if any, incurred in
connection with the Lawsuit and this Agreement.
10. No Admission of Liability. It is understood and agreed that the claims which are
the subject of this Agreement are disputed claims and that the execution of this
Agreement by the Parties, and the exclusions set forth in this Agreement, are not
intended to, and shall not in any way, constitute or be deemed an express or
implied admission or acceptance of any negligence, misconduct, responsibility or
liability by the Parties or an admission against interest by the Parties, and that the
Parties expressly and specifically deny all such claims. Such consideration is
being given to reduce the expense, uncertainties and hazards of litigation and to
mitigate damages to each of the Parties. There shall not be any implication by any
trier of fact or law of any admiss ion or acceptance of liability or admission against
interest by the Parties and it shall not be used against the City Releasors or the
Releasors in any attempt to prove any future liability claims. The Parties
understand and agree that no Party admits liability of any sort by reason of the
above incidents, acts, casualties, events , representations, omissions, conduct, or
interpretation . The Parties also understand and agree that this Agreement
constitutes the good faith compromise of the dispute, and is made in good faith to
terminate any further controversy respecting all claims for damages, causes of
action, or potential liability which could have been ascertained by reasonable
diligence which either Party to this Agreement may have asserted now, or may
assert in the future because of any damages, incidents, acts , casualties , or events ,
described or alluded to in this Agreement.
11. Representation and Warranties. The Parties warrant and represent that they
have not sold, assigned, transferred, conveyed, or otherwise disposed of any of
the claims, demands, obligations, or causes of action referred to in this Agreement.
The Parties declare and represent that they were not induced to enter into this
Agreement by any representations respecting the nature and extent of any
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
damages, legal liability, or financial responsibility made by any Party or their
representatives.
12. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, but all of which together shall constitute
one in the same instrument. A copy of this Agreement transmitted by electronic
means or telefacsimile shall be deemed an original.
13. Entire Settlement Agreement. The Parties acknowledge that this Agreement
constitutes the entire agreement. They further acknowledge that they have read it
and understand it; that the terms and conditions of this Agreement were arrived at
in arm's-length negotiations between the Parties with all Parties provided the
opportunity to seek the advice of legal counsel; that each Party's legal counsel did
or could have reviewed this Agreement; and that each Party has given due and full
consideration to the legal position of the other in regard to the provisions contained
herein.
14. Binding Agreement. This Settlement Agreement is binding on the Parties hereto
and the Parties agree to execute any and all documents necessary and consistent
with applicable law, to ratify, confirm, and perform the terms and provisions of this
Settlement Agreement. The terms of this Settlement Agreement shall be binding
on and inure to the benefit of the Parties, their legal representatives, members,
constituents, successors, assigns, subsidiaries and affiliates, and shall supersede
all prior discussions, negotiations and agreements among the Parties, concerning
settlement.
15.Amendments. This Settlement Agreement may not be orally modified. This
Settlement Agreement may only be modified in a writing signed by all the Parties.
16. Waiver and Modification. No modification, waiver, amendment, discharge, or
change of this Agreement shall be valid unless the same is in writing and signed
by the Party against which the enforcement of such modification, waiver,
amendment, discharge, or change is sought.
17.Jurlsdiction and Choice of Law. This Agreement shall be construed, enforced
and interpreted in accordance with the laws of the State of Florida. In the event
that an ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if crafted jointly by each of the Parties hereto and no presumptions
or burdens of proof shall arise favoring any party by virtue of the authorship of any
of the provisions of the Agreement. The Parties jointly conclude that should this
Agreement be challenged by any of the Parties, that venue for bring such
challenges shall take place in the County of Miami-Dade, Florida.
18 .Severability. In the event any provision, term or condition of this Agreement, on
behalf of either party, thereto shall be inapplicable, invalid, illegal or unenforceable
in any respect, the remainder of this Agreement and application of such provisions,
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
terms or conditions shall not be effected thereby, and shall be enforced to the
fullest extent permitted by law.
19. City's Sovereign Immunity. It is hereby acknowledged by the Parties that nothing
contained in this Agreement was intended to serve as a waiver of sovereign
immunity, as set forth and codified in Section 768.28 of the Florida Statutes, by the
City of Miami Beach to which sovereign immunity is applicable in the recovery of
damages in tort for money damages against the state or its agencies or subdivision
or injury or loss of property, personal injury, or death caused by the negligent or
wrongful act or omission of any employee of the agency or subdivision while acting
within the scope of the employee's office or employment.
20. No Third-Party Beneficiaries. The parties expressly acknowledge that it is not
their intent to create or confer any rights or obligations in or upon any third person
or entity under this Agreement. None of the Parties intend to directly or
substantially benefit a third party by this Agreement. The Parties agree that there
are no third party beneficiaries to this Agreement and that no third party shall be
entitled to assert a claim against any of the parties based upon this Agreement.
Nothing herein shall be construed as consent by an agency or political subdivision
of the State of Florida to be sued by third parties in any manner arising out of this
Agreement, or other obligations, whether known or unknown to the Parties .
WHEREFORE, the Parties approve the above terms and enter into this Settlement
Agreement of this Dispute between them as provided above and as of the date first
entered above.
INTENTIONALLY BLANK, SIGNATURE PAGE WILL FOLLOW
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
IN WITNESS WHEREOF, the Parties have set their hands and seals on the day
and date first written above:
(A c: f-s,. NJ p.
A-f'l-'-
STATE OF R.ORISA 14-"-'
tos (.1.-.,..<,et~s
COUNTY OF~
MME FLORIDA, LLC, a Florida limited
liability company
By:
Title:
The foregoing instrument was acknowledged before me this ,Jo ~ay of March,
2021, by J1-lomer l YNCl:t , President of MME, FLORIDA,
LLC, who is personally knciwn to me or who has produced ML....:.,;'4---'---....,.P'--l--______ _
(type of identification).
10
(Prin
Name) /JM; '\...'vi (2.-v'::fl.a -le (1/.H;)O
u I: (Of,_: .... tJ4-<-
Notary Public -State of Floriee-
My Commission Expires:
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SETTLEMENT AND RELEASE AGREEMENT BETWEEN
MME, FLORIDA, LLC AND THE CITY OF MIAMI BEACH, FLORIDA
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
THE CITY OF MIAMI BEACH,
FLORIDA, a political sub-division of the
State of Florida
~~:me~------
Title: Mayor _________ _
. Arr :t
The foregoing instrument was acknowledged before me this / day of Mare!T;'
2021, by Dan Gelber as Mayor of CITY OF MIAMI BEACH, FLORIDA, a political sub-
division of the State of Florida, who is personally known to me or who has produced
(re,so-v1" I t,t.,.,.......,, (type of identification).
ATTEST:
11
(Print 4 __ -----
Name )--,<,,ff.,___ tYtY"'_-_ -_____ _
I'
Notary Public -State of Florida
My Commission Expires : _____ _
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