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RESOLUTION APPROVING A PREFERENTIAL BERTHING RIGHTS AGREEMENT BETWEEN MIAMI-DADE COUNTY AND CLASSICA CRUISE OPERATOR LTD. D/B/A MARGARITAVILLE AT SEA, WITH AN ANTICIPATED POSITIVE FISCAL IMPACT TO THE COUNTY OF $23,148,594.00; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO (1) EXECUTE THE AGREEMENT AND EXERCISE ALL RIGHTS CONTAINED THEREIN, INCLUDING APPROVALS, DENIALS, AND TERMINATION RIGHTS AND (2) TAKE ANY OTHER ACTS NECESSARY TO GIVE EFFECT TO THE AGREEMENT, INCLUDING APPROVING OTHER INSTRUMENTS AND AMENDMENTS

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:

Section 1. Approves the Preferential Berthing Rights Agreement (�Agreement�) between Miami-Dade County (�County�) and Classica Cruise Operator Ltd. d/b/a Margaritaville at Sea (�MVAS�), in substantially the form attached hereto, with an anticipated positive fiscal impact to the County of $23,148,594.00.

Section 2. Authorizes the County Mayor or the County Mayor�s designee to: (1) execute the Agreement and exercise all rights contained therein, including approvals, denials, and termination rights; and (2) take any other acts necessary to give effect to the Agreement, including approving any other instruments and amendments to the aforementioned agreement that have no adverse fiscal impact to the County and have been reviewed and approved by the County Attorney�s Office as to form and legal sufficiency.

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Date:

To: Honorable Chairman Anthony Rodriguez
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor
Subject: Resolution Approving a Preferential Berthing Rights Agreement between Miami-Dade County and Classica Cruise Operator Ltd. d/b/a Margaritaville at Sea (�MVAS�)

STAFF RECOMMENDATION
Executive Summary
This item seeks approval of a resolution authorizing the County Mayor or County Mayor�s designee to execute and exercise all rights contained in a Preferential Berthing Rights Agreement (the �Agreement�) between Miami-Dade County (the �County�) and Classica Cruise Operator Ltd. d/b/a Margaritaville at Sea (�MVAS�).

The Agreement is expected to generate approximately one million passenger movements and at least $23.15 million in guaranteed revenues over the five-year term, with additional upside from passenger volumes exceeding the Minimum Annual Guarantee (�MAG�). The Agreement also includes targeted incentives designed to support off-peak utilization, enhance terminal efficiency, reduce traffic impacts on peak days, and promote cruise demand from PortMiami. The term of the Agreement commences upon the first vessel call on January 9, 2027, through April 30, 2031, with two optional five-year renewal terms upon mutual agreement.

PortMiami is one of America�s busiest seaports, internationally recognized as the Cruise Capital of the World and the Cargo Gateway of the Americas. It contributes more than $61 billion annually to the local and state economy and supports 340,078 direct, indirect, and induced jobs. The Port�s cruise sector continues to reach unprecedented levels, setting new passenger records year after year. With 10 state-of-the-art cruise terminals and a growing roster of leading cruise lines deploying their largest and most innovative vessels, PortMiami operates at an exceptional pace, reinforcing its position as the undisputed global leader in the cruise industry.

This partnership supports PortMiami�s (or �Port�) continued commitment to growth, diversification of cruise offerings, and efficient utilization of existing infrastructure, further reinforcing Miami-Dade County�s position as the Cruise Capital of the World�. This Agreement marks an important milestone for PortMiami, representing the first preferential berthing agreement with a new cruise line partner since the Port�s 2019 agreement with Virgin Voyages.

Recommendation
It is recommended that the Board approve the accompanying resolution authorizing the County Mayor or County Mayor�s designee to execute and exercise all rights contained in the Preferential Berthing Rights Agreement between Miami-Dade County and MVAS.
Delegated Authority
This item authorizes the County Mayor or County Mayor�s designee to (1) execute Agreement and exercise all rights contained therein, including approvals, denials, and termination rights; and (2) take any other acts necessary to give effect to the Agreement, including approving any other instruments and amendments to the Agreement that have no adverse fiscal impact to the County and have been reviewed and approved by the County Attorney�s Office as to form and legal sufficiency.

Scope
PortMiami is located within District 5, represented by Commissioner Vicki L. Lopez. The impact of this item is countywide as PortMiami is a regional asset and generates employment for residents throughout Miami-Dade County.

Fiscal Impact/Funding Source
Approval of this item will have a positive fiscal impact to the County of at least $23.15 million over the five-year term (FY 2027�FY 2031), derived from MVAS�s use of berths and per-passenger unitary fees, subject to a three percent (3%) annual escalation. There is additional upside potential, as passenger volumes exceeding the MAG will generate incremental port fee revenues.

The proposed Agreement includes a series of incentives designed to support passenger growth, operational efficiency, and year-round demand at the Port. Consistent with other cruise line agreements, these include a parking incentive based on MVAS�s share of embarkations and a marketing incentive tied to achievement of the MAG. Due to the County�s unique reassignment provision, MVAS may also receive either an operational incentive for a non-peak day or for evening vessel calls if applicable. The non-peak day and evening-call incentives provide a 50% reduction of applicable port fees for qualifying calls, help reduce traffic impacts on peak days and encourage more efficient utilization of terminal capacity. Only one operational incentive may apply per vessel call, and all incentives are structured so as not to reduce other fees payable to the County. These incentives are limited in scope and are expected to represent a relatively small portion of total revenues under the Agreement, which are primarily driven by the MAG.

Track Record/Monitor
The Seaport Department staff members responsible for monitoring the Agreement are Frederick P. Wong, Jr., Deputy Port Director, Operations, and George Andrews, Assistant Director, Strategy and Economic Development.

Background
Margaritaville at Sea, operated by Classica Cruise Operator Ltd. in partnership with the Margaritaville hospitality brand founded by Jimmy Buffett, is an emerging cruise line backed by private equity firm Sycamore Partners. The line focuses on short- and mid-length Caribbean itineraries from Florida. Since its launch in 2022, the company has experienced rapid growth, expanding from a single vessel to a three-ship fleet by 2027, including the Margaritaville at Sea Paradise, Islander, and the newly acquired and refurbished Beachcomber, which will homeport in Miami beginning in January 2027.

The brand has carved out a niche in the cruise market by offering accessible, lifestyle-driven experiences that appeal to both first-time and repeat cruisers, contributing to strong demand and repeat guest growth. The company has quickly gained recognition within the cruise industry, earning multiple top rankings in national travel awards. Margaritaville at Sea was named the No. 1 �Best Cruise Line� in the Cruise Critic Cruisers� Choice Awards for two consecutive years and has also received top honors from USA Today�s 10 Best Readers� Choice Awards, including No. 1 �Best Caribbean Cruise� and NO. 1 �Best Cruise Line for Solo Travelers.� These accolades reflect strong guest satisfaction, operational performance, and growing brand momentum. As a growing cruise operator, Margaritaville at Sea represents a strategic and expanding player in the Caribbean cruise market, with growing importance to PortMiami�s long-term cruise portfolio.

In August 2025, the Port and MVAS executed a Confirmation of Berthing Request, confirming an initial deployment of approximately 170 calls and forming the basis for the proposed long-term Agreement. The proposed Agreement formalizes those commitments and replaces the prior confirmation with a long-term contractual framework establishing preferential berthing rights and financial obligations. This Agreement marks an important milestone for PortMiami, representing the first preferential berthing agreement with a new cruise line partner since the Port�s 2019 agreement with Virgin Voyages.

Key elements of the Agreement include:

? Preferential Berthing Rights at Cruise Terminal C: MVAS is granted preferential berthing rights to Cruise Terminal C on certain dates established in the Confirmation of Berthing and Exhibit A, subject to operational requirements and the County�s reassignment rights.
? Five-Year Term: Commencing upon the first vessel call on January 9, 2027, through April 30, 2031, with two optional five-year renewal terms upon mutual agreement.
? Minimum Annual Guarantee: The Minimum Annual Guarantee is derived from MVAS�s commitment to 100% vessel occupancy for each of the confirmed vessel calls set forth in Exhibit A (approximately 170 calls), calculated in accordance with the PortMiami Tariff. Each confirmed call is subject to a payment guarantee, such that MVAS is required to pay all applicable charges for each scheduled call regardless of whether the call occurs, except in cases where a call is canceled at the County�s direction.
? Port Fee Structure: The unitary fee per passenger fee is aligned with PortMiami tariff equivalency, subject to a 3% annual escalation.
? Incentives: The Agreement provides MVAS with limited incentives related to parking, marketing, non-peak day calls, and evening calls. These incentives are intended to support deployment from PortMiami while encouraging efficient use of existing cruise terminal capacity, an important strategy for accommodating future cruise growth within the Port�s limited land and infrastructure footprint.
? Reassignment: County has unique reassignment rights for Force Majeure events, construction activities related to the North Bulkhead Rehabilitation Project and Berth 10 Project, and governmental directives.

The proposed Agreement reflects a balanced approach that supports a new entrant to PortMiami cruise line-up while preserving the County�s operational control, financial protections, and long-term strategic objectives.

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Jimmy Morales
Chief Operating Officer