Ordinance 2024-4623 ORDINANCE NO. 2024-4623
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 34 OF THE
CITY CODE, ENTITLED "COMMUNITY DEVELOPMENT," BY
AMENDING ARTICLE II, ENTITLED "COMMUNITY REDEVELOPMENT,"
BY AMENDING DIVISION 3, ENTITLED "REDEVELOPMENT TRUST
FUND," BY AMENDING SECTION 34-87, ENTITLED "PROHIBITION,"
TO AUTHORIZE THE REVIEW AND APPROVAL OF CERTAIN
REQUESTS FOR FUNDING FROM THE REDEVELOPMENT TRUST
FUND OF THE CITY OF MIAMI BEACH REDEVELOPMENT AGENCY TO
SUPPORT THE DEVELOPMENT OF PUBLIC AREAS OF THE
CONVENTION CENTER HEADQUARTERS HOTEL CONSISTENT WITH
SECTION 163.370(2)(C)(3), FLORIDA STATUTES; PROVIDING FOR
REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE
DATE.
WHEREAS, in 1998, the City Commission adopted Ordinance 98-3159, which
prohibits the City Commission from authorizing the Miami Beach Redevelopment Agency
(the "Agency") from utilizing any Agency funds to support a project that is owned by or
leased to a private entity; and
WHEREAS, in 2014, the Agency, City, and Miami-Dade County adopted an
amendment to the Agency's redevelopment plan to define the Convention Center
Renovation and Expansion Project (the "Convention Center Project"), which includes the
construction of a convention center headquarters hotel (the "Convention Center Hotel"),
and to authorize the use of Agency trust fund revenues as a funding source for the
Convention Center Project; and
WHEREAS, the City, through Resolution 2018-30425, approved a development
and ground lease agreement between the City and MB Mixed Use Investment, LLC, a
Florida limited liability company (the "Hotel Developer") for the development and
operation of the Convention Center Hotel contemplated by the Redevelopment Plan at
the location defined in the lease agreement (the "Hotel Parcel"); and
WHEREAS, the Hotel Parcel is ready for the commencement of construction of
the Convention Center Hotel upon the closing of construction financing; and
WHEREAS, due to widespread market conditions, the cost to construct the
Convention Center Hotel has increased by more than $237 Million since the award of the
lease agreement, and current debt and equity markets cannot alone finance the
construction cost of the Convention Center Hotel; and
WHEREAS, on March 13, 2024, the Agency Board, by motion, directed Agency
staff to negotiate a grant agreement with the Hotel Developer to provide financial support
from the Agency trust fund for the support of the Convention Center Hotel (the "Motion");
and
WHEREAS, section 163.370(2)(c)(3), Florida Statutes (the "Redevelopment Act")
authorizes the City to utilize Agency resources to support "public areas of major hotels
that are constructed in support of convention centers, including meeting rooms, banquet
facilities, parking garages, lobbies, and passageways"; and
WHEREAS, the City desires to amend Section 34-87, as originally embodied in
Ordinance 98-3159, to permit the consideration of a grant of Agency funds to the Hotel
Developer to support the construction of the Hotel, as previously authorized by the
Agency Redevelopment Plan, the Redevelopment Act, and the Motion.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Chapter 34, "Community Development," Article II, "Community
Redevelopment," Division 3, "Redevelopment Trust Fund," Section 34-87 of the Code of
Ordinances of the City of Miami Beach is hereby amended as follows:
CHAPTER 34
COMMUNITY DEVELOPMENT
ARTICLE II. — COMMUNITY REDEVELOPMENT
* * *
DIVISION 3. — REDEVELOPMENT TRUST FUND
Notwithstanding anything to the contrary contained in F.S. Ch. 163, Pt. III, or any
other provision of law, the mayor and city commission shall not pass any ordinance or
resolution authorizing the Miami Beach Redevelopment Agency (the "Agency") to use
any moneys deposited to or held in any redevelopment trust fund created, established
and maintained by said agency pursuant to F.S. § 163.387, for any project that is owned
by, or leased to, any private person or entity, other than a person or entity designated as
not-for-profit under Section 501(c)(3)of the Internal Revenue Code of 1986, as amended,
whose principal purpose is the support, enhancement, improvement or advancement of
the arts, cultural activities or education. It is the intent of this section that moneys in the
redevelopment trust fund shall be used solely to undertake and carry out public
redevelopment projects authorized by F.S. Ch. 163, Pt. III, which projects will be owned
by the city and/or the'agency, or by the not-for-profit persons or entities enumerated
above; provided, however, that this section shall not be construed to impair the obligation
of any contract to which the city or the agency is a party as of the date of adoption of this
section, or to restrict the future expenditure_of moneys in the redevelopment trust fund
therefor, including, but not limited to, any contract with the holders of any bonds or other
obligations of the city or the agency, or to comply with any obligation the city and/or the
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agency to acquire or construct parking facilities for the Miami Beach Marina; provided
further that nothing herein shall prohibit the authorization of Agency funds to support the
development of public areas of the Miami Beach convention center headquarters hotel
on the corner of 17th Street and Convention Center Drive, including meeting rooms,
banquet facilities, parking garages, lobbies, and passageways in accordance with F.S. §
163.370(2)(c)(3).
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed.
SECTION 3. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid, the
remainder shall not be affected by such invalidity.
SECTION 4. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach,
and it is hereby ordained that the provisions of ordinance 98-3159 as amended by this
ordinance shall become and be made part of the Miami Beach City Code as Section 34-
87 thereof. The sections of this ordinance may be renumbered or relettered to accomplish
such intention, and the word"ordinance" may be changed to "section," "article," or other
appropriate word.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the . C day of ( , 2024.
PASSED AND ADOPTED this aG day of /Gott - , 2024.
ATTEST:
•
JUL - 3 2024 even Meiner, Mayor
Rafael E. Granado, City Clerk
B q.E. 'cyl,I
-�.,.••••••• • APPROVED AS TO
A,„FORM &LANGUAGE
Underline denotes additions flRATEo = &FOR EXECUTION
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Strikethrough denotes deletions
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(sponsored by Commissioners Alex J. Fernandez City Attomey Date
and Tanya K. Bhatt)
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Ordinances - R5 C •
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: City Attorney Ricardo J. Dopico
DATE: June 26, 2024 10:20 a.m. Second Reading Public Hearing
TITLE: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 34 OF THE CITY CODE,
ENTITLED "COMMUNITY DEVELOPMENT," BY AMENDING ARTICLE II,
ENTITLED "COMMUNITY REDEVELOPMENT," BY AMENDING DIVISION 3,
ENTITLED "REDEVELOPMENT TRUST FUND," BY AMENDING SECTION 34-87,
ENTITLED "PROHIBITION," TO AUTHORIZE THE REVIEW AND APPROVAL OF
CERTAIN REQUESTS FOR FUNDING FROM THE REDEVELOPMENT TRUST
FUND OF THE CITY OF MIAMI BEACH REDEVELOPMENT AGENCY TO
SUPPORT THE DEVELOPMENT OF PUBLIC AREAS OF THE CONVENTION
CENTER HEADQUARTERS HOTEL CONSISTENT WITH SECTION
163.370(2)(C)(3), FLORIDA STATUTES; PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
ANALYSIS
The proposed Ordinance was approved on First Reading at the May 15, 2024 City Commission
meeting. No changes have been made between First and Second Reading.
The proposed Ordinance has been placed on the City Commission meeting agenda for First
Reading at the request of Commissioners Alex Fernandez and Tanya K. Bhatt. The Ordinance
has been drafted pursuant to the direction of the Board of the Miami Beach Redevelopment
Agency ("Agency") at its meeting on March 13, 2024.
Section 163.370(2)(c)(3), Florida Statutes (the "Redevelopment Act"), authorizes the use of
Agency resources to support "public areas of major hotels that are constructed in support of
convention centers, including meeting rooms, banquet facilities, parking garages, lobbies, and
passageways."
The City,through Resolution 2018-30425, approved a development and ground lease agreement
between the City and MB Mixed Use Investment, LLC, a Florida limited liability company (the
"Hotel Developer") for the development and operation of the Convention Center Hotel
contemplated by the Redevelopment Plan at the location defined in the lease agreement (the
"Hotel Parcel"). The Hotel Parcel is ready for the commencement of construction of the
Convention Center Hotel upon the closing of construction financing. Due to widespread market
conditions, the cost to construct the Convention Center Hotel has increased by more than $237
million since the award of the lease agreement,and current debt and equity markets cannot alone
finance the construction cost of the Convention Center Hotel.
On March 13, 2024, the Board of the Agency adopted a motion directing Agency staff to negotiate
a grant agreement with the Hotel Developer to provide financial support from the Agency trust
fund for the support of the Convention Center Hotel (the"Motion").
Section 34-87 of the City Code currently prohibits the use of Agency funds to support a project
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that is owned by or leased to a private entity. Accordingly, the amendments set forth in the
attached Ordinance have been drafted to permit the consideration of a grant of Agency funds to
the Hotel Developer to support the construction of the hotel, as previously authorized by the
Agency Redevelopment Plan and the Redevelopment Act, and pursuant to the direction of the
Agency Board on March 13, 2024.
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate? Yes.
(FOR ORDINANCES ONLY)
The Business Impact Estimate (BIE)was published on June 7, 2024. See BIE at:
https://www.miamibeachfl.00v/city-hall/city-clerk/meetinq-notices/
Applicable Area
Citywide
Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
No No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
City Attorney
Sponsor(s)
Commissioner Alex Fernandez
Commissioner Tanya K. Bhatt
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