Resolution 2025-33556 RESOLUTION NO. 2025-33556
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXTEND
THE OUTSIDE POSSESSION DATE FOR UP TO SIXTY (60) DAYS FOR THE
CONVENTION CENTER HOTEL PROJECT (THE "PROJECT") BEING
DEVELOPED PURSUANT TO THE DEVELOPMENT AND GROUND LEASE
AGREEMENT WITH MB MIXED USE INVESTMENT, LLC ("THE
DEVELOPER"), TO THE EXTENT REASONABLY REQUIRED FOR THE
DEVELOPER TO ACHIEVE FINANCIAL CLOSE.
WHEREAS, on July 25, 2018, the Mayor and City Commission adopted Resolution No.
2018-30425, approving the lease (the "Lease") between the City of Miami Beach (the "City") and
MB Mixed Use Investment Holdings, LLC(the"Developer"), for the construction and development
of the Miami Beach Convention Center Hotel (the"Hotel Project")at the site (the"Site") located at
the northeast corner of Convention Center Drive and 17th Street as defined in the Lease; and
WHEREAS, on November 6, 2018, more than sixty percent (60%) of the voters voting
thereon in a City-wide referendum approved of the Lease as required by Section 1.03(b)(3)of the
City Code; and
WHEREAS, completion of the Hotel Project is essential to ensuring the viability of the
Convention Center as a destination for high profile and high-economic-impact events; and
WHEREAS, on December 9, 2019, the City approved the Grand Hyatt Hotel brand
pursuant to Section 13.3 of the Hotel lease; and
WHEREAS, on March 4, 2020, the City and the Developer entered into an early access
agreement (the "Early Access Agreement") to grant access to the Developer to the Site and to
certain other areas, so that the Developer could perform certain pre-construction activities {the
"Early Work") that would accelerate the timeline for construction of the Hotel Project; and
WHEREAS, on March 13, 2020,the Developer notified the City they were asserting a Force
Majeure event and an Economic Force Majeure event with respect to the COVID-19 pandemic;
and
WHEREAS, on April 14, 2022, pursuant to the Early Access Agreement, the Hotel
Developer's contractor mobilized on the Site and commenced the initial phases of the Early Work;
and
WHEREAS, on November 16, 2023, the Developer notified the City that they were
asserting an Economic Force Majeure event due to impaired access to financial markets for
development of projects in the United States similar to the Grand Hyatt Hotel project, which
delayed their ability to finance the full construction of the hotel project; and
WHEREAS, on November 17, 2023, LTC 515-2023 advised the Mayor and City
Commission that the Developer experienced a significant increase in project costs due to
rising construction costs and interest rates, and needed additional time to secure the financing
required to fund the Hotel project; and
WHEREAS, on April 9, 2024, the early site work Certificate of Completion was issued,
making the site available for the commencement of the vertical construction upon site
possession by the Hotel developer; and
WHEREAS, the Miami-Dade Board of County Commissioners, the City Commission,
and the Board of the Miami Beach Redevelopment Agency(the "RDA") each approved a Sixth
Amendment to the RDA Interlace! Agreement to authorize additional funding (the"Grant") to
allow for the expeditious development of the Hotel Project; and
WHEREAS,the Lease requires that the Project must achieve financial close on all required
debt and equity sources for the full construction cost of the Project in order for Developer to take
possession of the Subject Property; and
WHEREAS,the Developer is currently finalizing all applicable financing documents in
anticipation of loan closing and site possession; and
WHEREAS, the Project development cost is approximately $600 Million and will require
coordination with multiple lenders and investors and obtain approval from Miami-Dade County of
the final form of the Grant; and
WHEREAS, the current outside possession date required by the Lease is April 1, 2025 (the
"Outside Possession Date"); and
WHEREAS, the Developer anticipates that limited additional time may be required to
finalize all applicable loan documents and obtain approval from Miami-Dade County of the final
form of the Grant; and
WHEREAS, the Administration recommends granting the City Manager the authority to
approve, on behalf of the City, a sixty (60) day extension, to the Lease Outside Possession Date,
to the extent reasonably required for Developer to finalize its financing, and to execute any
documents required to evidence such extension.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City Manager shall
have the authority to approve, on behalf of the City, a sixty(60)day extension to the Lease Outside
Possession Date, to the extent the City Manager reasonably determines that any such extension
is required for Developer to achieve financial close and otherwise satisfy the Possession
Conditions set forth in the Lease, and that the City Manager shall be authorized to execute any
documents required to evidence such extension.
PASSED and ADOPTED this y9 day of march, 2025
ATTEST:71>2 �/(/n//�''•
MAR 2 0 2025 Steven Meiner, Mayor
Rafael E. Granado, City Clerk
APPROVED AS TO
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Resolutions - C7 B
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: March 19, 2025
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXTEND THE
OUTSIDE POSSESSION DATE FOR UP TO SIXTY (60) DAYS FOR THE
CONVENTION CENTER HOTEL PROJECT (THE "PROJECT") BEING
DEVELOPED PURSUANT TO THE DEVELOPMENT AND GROUND LEASE
AGREEMENT WITH MB MIXED USE INVESTMENT, LLC ("THE DEVELOPER"),
TO THE EXTENT REASONABLY REQUIRED FOR THE DEVELOPER TO
ACHIEVE FINANCIAL CLOSE.
RECOMMENDATION
Adopt the Resolution.
BACKGROUND/HISTORY
On July 25, 2018, the Mayor and City Commission adopted Resolution No. 2018-30425,
approving the Lease between the City of Miami Beach (the"City")and MB Mixed Use Investment
Holdings, LLC(the"Developer"), approving the construction and development of the Miami Beach
Convention Center Hotel(the"Hotel Project")at the site(the"Site")located at the northeast corner
of Convention Center Drive and 17th Street as defined in the Hotel Lease.
On November 6, 2018, more than sixty percent (60%)of the voters voting thereon in a City-wide
referendum approved of the Lease as required by Section 1.03(b)(3) of the City Code.
On December 9, 2019, the City approved the Grand Hyatt Hotel brand pursuant to Section 13.3
of the Hotel lease.
On March 4, 2020, the City and the Developer entered into an early access agreement(the"Early
Access Agreement") to grant access to the Developer to the Site and to certain other areas, so
that the Developer could perform certain pre-construction activities (the "Early Work")that would
accelerate the timeline for construction of the Hotel Project.
On March 13, 2020, the Developer notified the City they were asserting a Force Majeure event
and an Economic Force Majeure event with respect to the COVID-19 pandemic.
On April 14, 2022, pursuant to the Early Access Agreement, the Hotel Developer's contractor
mobilized on the Site and commenced the initial phases of the Early Work.
On November 16, 2023, the Developer notified the City that they were asserting an Economic
Force Majeure event due to impaired access to financial markets for development of projects in
the United States similar to the Grand Hyatt Hotel project, which delayed their ability to finance
the full construction of the hotel project. On November 17, 2023, LTC 515- 2023 advised the
Mayor and City Commission that the Developer experienced a significant increase in project costs
due to rising construction costs and interest rates and needed additional time to secure the
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financing required to fund the Hotel project.
On April 9, 2024, the early site work Certificate of Completion was issued, making the site
available for the commencement of the vertical construction upon site possession by the Hotel
developer.
Following various meetings of the Miami-Dade Board of County Commissioners (BCC), the City
Commission and the RDA Board at which the grant agreement among the RDA, the Developer
and the Public Finance Authority was discussed, approved, and modified, a grant agreement
providing for up to $92,500,000 in funding to allow for the expeditious development of the Hotel
Project was approved by the BCC, the City Commission and the RDA Board, with the final
necessary approval occurring at the November 20, 2024 meeting of the BCC.
ANALYSIS
The Lease requires that the Project must achieve financial close on all required debt and equity
sources for the full construction cost of the Project in order for Developer to take possession of
the site. The Developer is currently finalizing all applicable financing documents in anticipation of
loan closing and site possession. Coordination with multiple lenders and investors, as well as
approval from Miami-Dade County on the final form of the Grant is required.
The current outside possession date required by the Lease is April 1, 2025 (the "Outside
Possession Date"). The Developer anticipates that limited additional time may be required to be
able to finalize all applicable loan documents and obtain approval from Miami-Dade County of the
final form of the Grant.
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https://www.miamibeachfl.govlcity-hall/city-clerklmeetina-notices/
FINANCIAL INFORMATION
CONCLUSION
The Administration recommends authorizing the City Manager to extend the Outside Possession
Date for up to sixty (60) days for the Convention Center Hotel Project being developed pursuant
to the Development and Ground Lease Agreement with MB Mixed Use Investment, LLC, to the
extent the City Manager reasonably determines that any such extension is required for the
Developer to achieve financial close and otherwise satisfy the Possession Conditions set forth in
the Lease.
Applicable Area
Citywide
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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 Manager
Sponsor(s1
Co-sponsor(s1
Condensed Title
Convention Center Hotel Project - Outside Possession Date Up To 60-Day Extension, CM
Previous Action (For City Clerk Use Only1
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