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Ordinance 2025-4735 ORDINANCE NO. 2025-4735 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY CODE, ENTITLED "ADMINISTRATION," ARTICLE V, ENTITLED "FINANCE," BY CREATING SECTION 2-280 THEREOF, ENTITLED "USE OF RENT PAYMENTS RECEIVED BY THE CITY FROM CONVENTION CENTER HOTEL LEASE," TO DEDICATE, PURSUANT TO THE BALLOT MEASURE APPROVED BY THE CITY'S VOTERS ON NOVEMBER 6, 2018, THE GUARANTEED RENT PAYMENTS RECEIVED BY THE CITY FROM THE CONVENTION CENTER HOTEL LEASE TO ENHANCE FUNDING FOR STORMWATER PROJECTS (IN LIEU OF R.4TE INCREASES),TRAFFIC REDUCTION MEASURES,AND EDUCATION; AND REQUIRE A 5/7THS VOTE OF THE CITY COMMISSION TO ADOPT ANY FUTURE AMENDMENT TO THIS ORDINANCE; PROVIDING FOR CODIFICATION; REPEALER; SEVERABILITY; AND AN EFFECTIVE DATE. WHEREAS,on November6, 2018, the City's voters approved a developmen[and ground lease agreement for the 2.6-acre property at the northeast corner of 17th Street and Convention Center Drive for 99 years, requiring, pursuant to Resolution 2018-30425, the construction and operation of an 800-room convention hotel to be connected to the Miami Beach Convention Center (the "Hotel Ground Lease"); delineating conditions for the design, construction, equipping, and operatlon of the hotel on the leased property with no City funding; prohibiting gambling establishments on Ihe leased property; and, commencing aker the hotel begins operation, providing for annual base rent to the City in the amount of the greater of the minimum fxed rent or a percentage of the revenues of the hotel, among other rent payments; and WHEREAS, on November 16, 2018, the City's voters also approved a separate ballot measure related to the uses to which minimum fxed rent payments to be received by the City pursuant to the Hotel Ground Lease would be dedicated (the "Hotel Rent Dedication Ballot Question"); and WHEREAS, the Hotel Rent Dedication Ballot Question required the City Commission to adopt an ordinance dedicating the minimum fxed rent payments to be received by the City pursuant to the Hotel Ground Lease to enhance funding (not replace or substitute existing City funding)for stormwater projects, tra�c reduction measures, and education with any amendment of such ordinance subject to supermajority (5/7ths) approval by the City Commission; and WHEREAS, the developer and lessee under the Hotel Ground Lease, MB Mixed Use Investment, LLC, has successfully reached financial cbse for the Grand Hyatt Miami Beach Convention Center Hotel, officially taking possession of the site, representing a significant milestone toward the delivery of this long-awaited transformative project; and WHEREAS, accordingly, the Mayor and City Commission now desire to codify the directive from the City's voters, as required. NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA: SECTION 1. That Chapter 2 of the Miami Beach City Code entitled "Administration," of Article V, entitled "Finance," at Section 2-280, entitled "Use of Rent Payments Received by the City from Convention Center Hotel Lease," is hereby amended as follows: CHAPTER2 ADMINISTRATION ARTICLE V. FINANCE Section 2-280. Use of rent oavments received bv the Citv from convention center hotel lease. ja� Lepislative intent. 1. On November6. 2018, the Citv's voters approved a develooment and qround lease aqreement for [he 2.6-acre oropertv at the northeast corner of 17th S[reet and Convention Center Drive for 99 vears requirinq pursuant to Resolution 2018- 30425, the construction and ooeration of an 800-room convention hotel to be connected to the Miami Beach Convention Center: delineatinq conditions for the desiqn, construction, equiooina, and ooeration of the hotel on the leased oropertv with no Citv fundinq: prohibitinq oamblinq establishments on the leased oropertY� and, commencinq after the hotel beains ooeration. orovidinq for annual base rent to the Citv in the amount of the qreater of the minimum fxed rent or a percentaqe of the revenues of the hotel, amonq other rent paYments. 2. The convention center hotel develooment and around lease aareement is recorded in Official Records Book 34116 Paqes 33383524 of the public records of Miami- Dade Countv. Florida. 3. The purpose of this section is to codifv a separete batlot measure approved bv the Citv's voters on November 6. 2018, reouirinq the Citv Commission to adopt an ordinance dedicatinq the minimum fxed rent oavments received bv the CiN to enhance fundinq (not reolace or substitute for existinq City fundinq) for certain specified ouroases. 4. The term "minimum fxed ren£' shall have the meaninq ascribed to it in the convention center hotel development and lease aqreement. f b� Use of minimum fixed rent oavments. The minimum fixed rent oavments received bv the Citv pursuant to the convention center hotel develooment and around lease aqreement shall be dedicated to enhancina fundinq (not replace or substitute for existina Citv fundinql, in equal portions annuallv. for: 2 1. stormwater oroiects (in lieu of rate increasesl� 2. traffic reduction measures� and 3. education. fc� Amendment Anv amendment to the orovisions of this section shall reouire an affirmative f ve-sevenths (5/7ths1 vote of the Citv Commission SECTION 3. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 4. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 5. 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 this ordinance shall become and be made a part of the Miami Beach City Code. The sections of this ordinance may be renumbered or re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article," or other appropriate word. SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect upon approval and the revised impact fee rates shall be applied to all bills rendered on or after the effective date. PASSED and ADOPTEDthis aS day of Ti+nt , 2o2a. ATTEST: G�_ IIIN 3 0 202� ven Meiner, Mayor �p;M1 B�'��., ......o��... :i?'�� \/�:5+, ! . ranado, City Clerk ! s•?'Cw�'t `! i iINC011t ORAIED` � APPROVEDASTO `�� �REGISBARBOU :,,�, y� ti,h; FORM&LANGUAGE Undedine denotes additions '+4R..� .��e; 8 FOR FXECUTION SE�IcetAreu�!-idenotesdeletions �"^��.�6•�' � (Sponsored by Mayor Steven Meiner) (rlZa�r Co-Sponsoretl by Commissioner David Suarez cuy�uumey ¢ f�aze 3 Ordinances- RS M MIAMI BEACH COMMISSION MEMORANDUM TO: Honore6le Mayor and Members of the City Commission FROM: City Attomey Ricardo J. Dopico DATE: June 25, 2025 9:50 a.m. Second Reading Public Hearing TITLE: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CIN CODE, ENTITLED "ADMINISTRATION," ARTICLE V, ENTITLED "FINANCE," BY CREATING SECTION 2-280 THEREOF, ENTITLED "USE OF RENT PAYMENTS RECEIVED BY THE CIN FROM CONVENTION CENTER HOTEL LEASE," TO DEDICATE, PURSUANTTO THE BALLOT MEASURE APPROVED BV THE CITV'S VOTERS ON NOVEMBER 6, 2018, THE GUARANTEED RENT PAYMENTS RECEIVED BY THE CITY FROM THE CONVENTION CENTER HOTEL LEASE TO ENHANCE FUNDING FOR STORMWATER PROJECTS (IN LIEU OF RATE INCREASES), TR4FFIC REDUCTION MEASURES, AND EDUCATION; AND RE�UIRE A SI7TH VOTE OF THE CIN COMMISSION TO ADOPT ANY FUTURE AMENDMENT TO THIS ORDINANCE; AND PROVIDING FOR REPEALER, CODIFICATION, SEVERA8ILIN, AND AN EFFECTIVE DATE. RECOMMENDATION BACKGROUNDIHISTORY On November 6, 2018, the City's voters approved a tlevelopment and grounC lease agreement for the 2.6-acre property at the noriheast comer of 17ih Street and Convention Center Drive for 99 years, requinng, pureuant to ResoWtion 2018-30425,the construction and operation of an 800-room convention hotel to be connected to the Miami Beach Convention Center (the "Hotel Ground Lease"); delineating conditions for the tlesign, consWction, equipping, and operetion of the hotel on the leased property wilh no City funding; pmhibiting gambling establishments on the leased property; and, commencing after the hotel begins operation, providing for annual base rent to the City in�he amount of the greater of the minimum fixed rent or a percentage of the revenues of the hotel, among other rent paymenls. On November 16, 2018, [he City's wters also approved a separate ballot measure related to lhe uses to which minimum fzed rent payments to be received by the City pursuant to the Hotel Ground Lease would be dedicated (the "Hotel Rent Dedication Balbt Question"). The Hotel Renl Dedication Ballot Ques�ion required the Cily Commission to adopt an ordinance dedicating the minimum fixed rent payments to be received by the Ciry pursuant to the Hotel Ground Lease to enhance funding (not replace or substitute eaisting City funding)for stormwa[er projects, traffic reduction measures, and education with any amendment of such ordinance subjecf to supermajonty (5l7ths)approval by the Ciry Commission. ANALYSIS 7509 The developer and lessee under the Ho�el Ground Lease, MB Mixed Use Investment, LLC, has successfully reached financial Gose for the Grand Hyatt Miami Beach Convention Center Hotel, officially taking possession of the site, representing a signifcant milestone toward the delivery of this long-awaited transformative project. The attached ordinance codifies the directive of lhe City's wtere pursuant to the Hotel Rent Dedicalion Ballot Question. F15CAL IMPACT STATEMENT N/A Does this Ordinance reouire a Busineas Imoact Estimate? Yes (FOR ORDINANCES ONLY) If applicable,the Business Impact Estimate(BIE)was published on: 512712025 See BIE at: https�llwww miamibeachfl.uov/citv-halllcity-clerk/meetinq-noticesl FINANCIAL INFORMATION CONCLUSION Aooliwbla Area Cilywide Is this a "Residents Riaht to Know" item. Ia this item related to a G.O. Bond pursuant to CiN Code Section 2-174 ProieM4 Yes No Was this As�enda Item initiallv reouested hv a lobbvist whieh. as defined in Code Sec. 2d81. includes a orincioal enaaaed in lobbvinA? No If so, specify the name of lobbyist(s)and principal(s): Deoartmenl City Attorney SDO0401(S� Mayor Steven Meiner Co-sDonaorlsl Commissioner Davitl Suarez 1510 Condensed Title 9:50 a.m. 2nd Rdg, Dedicate MBCC Hotel Rent Payments. (Meiner/Suarez)CA Previous Action (For CiN Clerk Use Onlvl First Reading Public Heanng on 5/21/2025- R5 AE 1511