Miami-Dade Legislative Item
File Number: 230935
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File Number: 230935 File Type: Resolution Status: Adopted
Version: 0 Reference: R-700-23 Control: Board of County Commissioners
File Name: NEW MIA HOTEL Introduced: 5/1/2023
Requester: Strategic Procurement Cost: Final Action: 7/18/2023
Agenda Date: 7/18/2023 Agenda Item Number: 8P3
Notes: Title: RESOLUTION APPROVING AWARD OF CONTRACT NO. RFP-01677 TO FDR MIAMI HOTEL LLC WITH A POSITIVE FISCAL IMPACT TO THE COUNTY OF APPROXIMATELY $240,000,000.00 OVER THE 50-YEAR TERM OF THE LEASE TO DESIGN, BUILD, FINANCE, OPERATE AND MAINTAIN A NEW HOTEL AT MIAMI INTERNATIONAL AIRPORT FOR THE MIAMI-DADE AVIATION DEPARTMENT; APPROVING THE LEASE; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE SAME AND EXERCISE ALL PROVISIONS CONTAINED THEREIN PURSUANT TO SECTION 2-8.1 OF THE COUNTY CODE AND IMPLEMENTING ORDER 3-38; AND DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO PROVIDE AN EXECUTED COPY OF THE LEASE TO THE PROPERTY APPRAISER’S OFFICE WITHIN 30 DAYS OF THE EXECUTION OF THE LEASE
Indexes: NONE
Sponsors: Oliver G. Gilbert, III, Prime Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed

Legislative History
Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail
Board of County Commissioners 7/18/2023 8P3 Adopted P
REPORT: Chairman Gilbert III presented the foregoing proposed resolution and moved that the Board adopt the foregoing proposed resolution. This motion was seconded by Commissioner Regalado. He stated he felt confident that the vendor selected would produce a feasible and much needed hotel for Miami International Airport (MIA). He noted that the vendors selected for award on this item and on item 11A2 Substitute on today’s agenda were proposing hotels in two (2) distinct markets. Commissioner Hardemon concurred with Chairman Gilbert III’s sentiments of having two (2) hotels at the MIA; adding that there was space enough for two hotels for MIA. He stated, however that both award proposals (8P3 & 11A2 Substitute) should be considered at the same time to allow for competition and give people the option to choose a hotel they wish; and also meet the needs of the County. Commissioner Hardemon referred to language in item 11A2 Substitute regarding a study and previous negotiations, and suggested that the negotiations be included. He stated that both proposals be brought back to the Board for consideration at the same time; he stated that he was willing to vote against the motion as it stood. Chairman Gilbert III stated he was not willing to defer these items today, referring to the process of the two items result did not yield a recommendation from the Committee to the full Board. He emphasized the need of affordable lodging facilities for moderate-income individuals due to the increase in travelers, as noted by a previous study conducted by the Aviation Department. He reviewed the procurement process and highlighted that both applicants cannot build at the same time, thus should not be considered together. Chairman Gilbert III noted that in the Request For Proposal (RFP) the Strategic Procurement Department (SPD) considered having two hotels, thus the contracts should be awarded to the two highest bidders. He stated that he adjusted the resolution’s language to reflect that both hotels would not have duplicative amenities and ratings. Commissioner Cabrera noted the importance moving forward with the fulfilling the Airport CIP stipulations for two (2) hotels and noted he was in support of the proposed items. Commissioner Garcia stated that he understood Chairman Gilbert III’s position regarding these items, but noted that the consideration of the second hotel did not align with the procurement process. He stated that he could not support awarding the second-place vendor without issuing a solicitation for the second site. Commissioner Garcia stated award of the second site in this manner could set a precedence for future awards. Chairman Gilbert III noted that the administration had approved direct source contracts in the past, however both applicants in this scenario had been vetted enough through the numerous procurement and Committee cycles, and both were found to be responsive and responsible proposers. Commissioner Garcia stated the land designated for the second hotel was not a part of the initial RFP process for one site. He highlighted that the second hotel site should go through a solicitation process, rather than be given to the applicant by the Board. Commissioner Cabrera noted that the Board would not be awarding the second hotel site today, but rather asking the Mayor negotiate the proposal further and come back for the Board’s consideration based on the Airport’s Capital Improvement Program. Commissioner Bermudez noted the best qualified proposer should receive the preferable building site, and move that application forward and expressed that the awarded applicant receiving the less preferable site would be unfair. He stated he would like to know timing and aspect of constructing a second hotel, noting that the recommendation of staff to award to FDR. Commissioner McGhee asked the County Attorney if Commissioner Garcia’s statements were correct. Assistant County Attorney (ACA) Michael Mastrucci responded to Commissioner McGhee’s inquiries and reviewed the expedited 90 day procurement process on this bid and staff’s recommendation of Fontainebleau Development, LLC and The Related Companies (FDR) Miami Hotel, LLC as the highest ranked responsible proposer. Discussion ensued regarding the procurement process for the proposed contract and the Mayor’s recommendation. Commissioner Cohen Higgins clarified that recommendations from staff come after a scoring by the Selection Committee, noting that the varying recommendations from the administration took place after the scoring. She stated that the Committee did its job, with the Inspector General sitting in on the examination, and the winner was recommended based on a scoring matrix established by the policy of the County. Commissioner Cohen Higgins noted that procurement by nature was winner takes all, and stated adoption of item 11— would be a consolation prize for the second ranked bidder, particularly since the matter competitively procured. She noted the possible implications of today decision and felt it would pose a threat to the Board’s authority,and the negative precedent that could be realized on future contracts. Commissioner Cohen Higgins stated if a seconded hotel was deemed needed, then the administration should issue a new competitive procurement at that time. Commissioner Cohen Higgins urged the Board to follow the recommendation of the Selection Committee with the number one bidder; and stated that should 11A2 or 11A2 Substitute were to pass today, she would call for the Mayor to veto the matter. Commissioner Hardemon emphasized that the Mayor had not given the Board an explanation as to why she presented varying recommendations. He spoke regarding the urgent needed accelerate the redevelopment of MIA, and urged the Board of move forward with both items quickly. Chairman Gilbert III stated that Florida State Statutes allowed that the procurement of these projects to be done without a competitive process. Commissioner Bastien voiced her concerns that the procurement process for these projects did not provide an opportunity for the proposers to make a presentation regarding their project. She noted she hoped that the Mayor had offer an explanation of her recommendation. Commission Bastien stated that the County needed and deserved elite hotels that that enhanced its brand. She stated she would support both items, but emphasized that the procurement process needs to be revamped. Mr. Ralph Cutié, Director, Miami-Dade Aviation Department (MDAD), responded to Commissioner Garcia’s inquiries regarding occupancy rates and number of units in the current hotel and that of the proposed hotel. Commissioner Garcia spoke of losing the confidence of the vendor and making it harder for them to recoup funding and do business based on the spec of the RFP. He suggested that the Board move forward with 8P3 and go out to bid on second hotel site. Chairman Gilbert III reiterated that specs within the RFP for this project contemplated a second hotel, noting 11A2 Substitute contained more business protections of which the proposers agreed and a RFP of which they responded. Commissioner McGhee spoke on affordability and the ratings of the proposed hotels, noting that support for one proposed hotel versus the other could deter middle class tourist due to the high cost of a night’s stay. He stated he would support both vendors in order to create equity and fairness. Chairman Gilbert III stated that construction of both sites would generate operational and functionality issues if completed concurrently. He then clarified that 11A2 Substitute would only give the Mayor the authority to negotiate terms for a second site, and return the Board with finished product. County Mayor Danielle Levine Cava noted she inherited the application from previous administration and that her involvement in the process was limited due to County rules. She stated that once she was provided with the results and recommendation of the Committee regarding the project, she was not satisfied with certain items that were important to her and the Board and initially rejected the proposals. She then indicated that the highest bidder came back with a better offer and she wanted to Board to weight on the matter as it stands today. There being no further discussion, the Board proceeded to vote on the foregoing resolution, as presented.
Airport and Economic Development Committee 6/14/2023 3J Forwarded to BCC without a recommendation
REPORT: Chairman Hardemon introduced the foregoing proposed resolution and asked the administration to review the bidding process and the final result. Mr. Jimmy Morales, Chief Operations Officer, Office of the Mayor, reviewed the project and bidding process, noting that an evaluation board ranked the applicant, Fontainebleau Development, LLC., and The Related Companies (FDR) Miami Hotel, LLC., as the number one bidder on this contract. He stated that Mayor Levine Cava raised concerns regarding the procurement process in a memorandum, and restarted the bid for the project. Mr. Morales indicated that the application did not receive a recommendation from the Mayor, which initiated a Cone of Silence for the procurement department. He further noted that the Mayor had reexamined the FDR Miami Hotel, LLC’s application, and recommended Board approval. Mr. Morales reported that the Office of the Inspector General (OIG) assessed the procurement bidding process and concluded that the process was fair and just. Mr. Michael Anthony, representing FDR Miami Hotel, LLC., presented a PowerPoint highlighting the history of the company and various projects the applicant produced. Mr. Phil Goldfarb, Chief Operating Office, FDR Miami Hotel, LLC expressed his enthusiasm in being awarded the contract to build the hotel at the Miami International Airport (MIA). Mr. Jordan Vargas, representing FDR Miami Hotel, LLC, reiterated Mr. Goldfarb’s sentiments and provided examples of different architectural projects completed by the company. Mr. Anthony reviewed the procurement process, compared the FDR Miami Hotel, LLC application to Parmco Airport Hospitality LLC, and provided explanations for the applicant’s high ranking. Mr. Bernando Fort Brescia, architect for Arquitectonica, provided a video presentation of the design and layout of the proposed hotel. He stated that the hotel would not obstruct airport traffic. Mr. Anthony urged the Committee to forward the proposed ordinance to the Board of County Commissioners with a favorable recommendation. Chairman Hardemon thanked FDR Hotel LLC for the presentations, and provided Parmco Airport and Hospitality, LLC’s representatives the opportunity to speak. Mr. Johnathan Vilma, representing Parmco Airport and Hospitality (PAH), LLC, shared a brief video highlighting the unique features of the applicant’s hotel vision. Mr. Barry Lewin, Partner, Prospect Hotel Advisors, reviewed his experience in the hospitality industry and emphasized the need for an airport hotel at MIA. He stated that the applicant would partner with Hilton Hotels for a premiere building and benefit from the Hilton brand. Mr. Les Melcher, Woodbine Development Corporation, reviewed the design portion of Parmco Airport and Hospitality, LLC’s application, and highlighted the most unique and efficient aspects. Mr. Vilma reiterated his colleagues’ comments and stated that PAH would sign the agreement for construction with two caveats. He stated that the company would modify their percentage rent paid to the County from 3.5% to 4% and adjust the lease from 90 months to 45 months, amounting to $2.6 million. Mr. Vilma also noted that PAH had confidential information regarding the current underground state of the proposed site. He concluded his presentation by reviewing the positive attributes of the application design, cost, and the creation of jobs for residents. Commissioner Bermudez asked the administration why the Committee members were not advised about the conditions of the underground infrastructure for the proposed site. Mr. Abdel Martel, President, MOBIO Architecture, Inc., spoke on behalf of Miami-Dade Aviation Department (MDAD) and stated that all prospective bidders had access to the utility atlas, which contained information regarding the area in question. Commissioner Regalado stated that the full history of “airport city” should be discussed because a previous procurement application paid for the study to be conducted, which rendered it proprietary information and sold the results to one of the bidders. Mr. Paul Lambert, Manager, PAH, stated that the information was purchased by the applicant, and shared a brief overview of the trenches under the proposed site. Commissioner Bermudez voiced his concerns that the County did not have proper protections in place for larger scale projects, which could hinder future development. Chairman Hardemon concurred with his colleagues, and noted that discrepancies in government records could occur. He stated that outside sources could be utilized to verify the County’s information to assure validity in the future. Mr. Morales noted the underground report was generated prior to the bid process, and emphasized that the current administration did not support the applicant using the proprietary information. Mr. Martel provided a list of all the surveys conducted on the site from 2014, including the utility atlas from 2004. He stated he was unaware of when the study was conducted, but noted the information was available to all consultants. Chairman Hardemon inquired if PAH’s information regarding the underground infrastructure was considered competitive information. Mr. Martel stated the administration could not access the information because it was not shared with them. Commissioner Bastien inquired as to why this was the first presentation done by PAH. Mr. Melcher stated that no presentation was requested by the procurement department, and believed that the applicant could have given a better understanding of their vision in light of the specifics of the solicitation. Commissioner Bastien suggested a presentation clause should be added to the procurement process in order to give applicants the opportunity to accurately pitch their bids. Mr. Morales reviewed the procurement process, and noted that neither applicant made a presentation to the evaluation board. Commissioner Regalado asked Ms. Namita Uppal, Director, Strategic Procurement Department (SPD), to provide more information regarding the procurement process. Ms. Uppal reviewed the administration’s 2020 Request for Proposal (RFP) for a hotel on the subject property. She explained that there was a two phased process which resulted with Parmco Airport and Hospitality, LLC and FDR Miami Hotel, LLC (FDR) being identified as the two responsive bidders. Ms. Uppal stated FDR Miami Hotel, LLC received a score of 3850/4000, and Parmco Airport and Hospitality, LLC received a score of 3319/4000. She emphasized that oral presentations could be waived because all bidding information should be included in the submitted documents. Ms. Uppal advised that oral presentations served to clarify the submitted application, and could not add any additional data. She noted that PAH’s design encroached on the airport’s easements, and the company was scored accordingly. Ms. Uppal compared the revenues of both applications, and noted that FDR presented revenues totaling $244 million s, which was significantly higher than PAH’s projected revenues. She emphasized that PAH provided new information that was not included in their original submitted application, which hindered the effectiveness of the procurement process. Ms. Uppal stated that the evaluation committee recommended the County negotiate with FDR given the scores. In response to Chairman Hardemon’s question as to the number of members on the evaluation committee, Ms. Uppal stated there were five (5) members and three (3) technical advisors. Discussion ensued between Chairman Hardemon regarding the number of members on the evaluation committee, the evaluation requirements, and there relation to the County procurement process. Ms. Uppal clarified there were four (4) members present, and noted the fifth member was unable to participate, so the scores were adjusted to reflect the composition change. Chairman Hardemon inquired as to the members’ names. Ms. Uppal listed the members as follows: ~Ms. Sarah Abate, Division Director, MDAD; ~Mr. Jose Vidal, Aviation Real Estate Manager, MDAD; ~Mr. Andy Hecker, CFO Assistant Port Director, PortMiami; ~Mr. Michael Johnson, Deputy Supervisor, Elections Department. Mr. Ralph Cutié, Aviation Director, MDAD, gave a brief overview of the members’ titles and experiences. Chairman Hardemon questioned Mr. Johnson’s ability to evaluate a procurement matter given his position in the Elections Department. Ms. Uppal stated that the Small Business Department (SBD) determined an individual’s expertise and experience before allowing them to serve on the committee. Chairman Hardemon inquired about Ms. Cynthia Golty’s role on the evaluation committee. Ms. Uppal stated that Ms. Golty served as the Chairperson, whose responsibilities included verification of the scoring to ensure accuracy. Chairman Hardemon requested clarification regarding the proposed rent and financial solutions, and asked for additional information about the technical approach and design. Ms. Uppal listed all the subjects covered under technical approach, as follows: ~ Project Management; ~ Project Schedule; ~ Risk Management and Safety; ~ Traffic Flow and Parking; ~ Hotel Operations and Maintenance; ~ Labor Practices and Peace Agreements; and ~ County Programs. Ms. Uppal briefly reviewed various other sub-criteria for design and financial solutions that applicants were required to provide. She explained the evaluation committee’s objectives were to match the applicants’ bids with the proposed criteria set within the RFP and make a decision. Discussion ensued between Chairman Hardemon and Ms. Uppal regarding scoring within each requirement proposed by the RFP. Chairman Hardemon asked for clarification as to how the financial aspect of the application was reviewed, and inquired as to what the proposed revenue goal/requirement was. Responding to Chairman Hardemon’s questions, Ms. Uppal stated stated applications with higher revenues paid to the County generally received a better score in the financial requirement. She explained a financial consultant was used to help with the comparisons. She noted the consultant shared their findings with the evaluation committee to aide in the scoring. Commissioner Cohen Higgins thanked Chairman Hardemon for allowing the applicants an opportunity to make their presentations and asked PAH what they believed was unfair about the procurement process. Mr. Lambert stated that the company’s inability to make a presentation to the evaluation committee was detrimental to the applicant’s success. He noted that PAH had submitted a revision to address the architectural encroachment prior to the evaluation process, but it was not considered by the evaluation committee. Mr. Lambert stated that thePAH project would increase the rental amount paid to the County to 4% and generate revenue within the first year of operation. Commissioner Cohen Higgins inquired about the evaluations timeframe. Mr. Lambert stated the process started in May 2020, but the previous Board voted to expedite the matter, which left the applicants less time. Commissioner Cohen Higgins noted that the OIG participated in over 80 hours of the bid meetings and deemed the process was fair. Responding to Commissioner Cohen Higgins’ question as to whether the applicant could self-finance the project, Mr. Lambert reported 40% of the project would be funded by the applicant, and the remaining 60% would be outsourced. He reiterated Mr. Vilma’s earlier comments, and stated that the company was willing to sign the draft lease agreement, even if it required the applicant fund 100% of the project. Commissioner Cohen Higgins noted that Mr. Lambert’s agreement to the lease was not included in the application, thus changing the original application post decision. She stated that the presentation given at today’s meeting could be interpreted as unfair because the applicant provided additional information that could not be reviewed by the evaluation committee. Mr. Lambert noted that both applications had changed after the decision. Discussion ensued between Commissioner Cohen Higgins and Mr. Lambert regarding the basis of his claims about the bid process, the comparison between both applications, and the lower financial solution presented by PAH. Commissioner Cohen Higgins inquired as to why the applicant did not file a bid protest. Mr. Eric Singer, Bilzin Sumberg LLP, representing Parmco Airports and Hospitality, LLC, stated that a bid protest would allege that the procurement was incorrectly handled, whereas the applicant’s goal was to show that they were the better applicant. Commissioner Cohen Higgins referenced the scores for both companies. Mr. Lambert further explained the proposed financial solutions scored higher in the initial phase due to the minimal annual guarantee. Commissioner Cohen Higgins asked PAH if they could provide a solution to close the 500 point gap difference between themselves and FDR. Chairman Hardemon asked the administration to clarify the importance of the minimal annual guarantee, and if this factored into FDR’s higher score. Ms. Uppal explained the applicants were scored in two categories, financial solutions and proposed rent; and clarified that up to 200 points could be earned for the financial solutions component while 250 points was allocated towards the proposed rent portion. She reviewed the sub-criteria used for the categories and gave a brief summary of the correlation between the two categories. Discussion ensued between Chairman Hardemon and Ms. Uppal regarding the minimal annual guarantee weight in the procurement process and the evaluation committee’s recommendation. Commissioner Cohen Higgins stated her intent to support the recommendation made by the evaluation committee because PAH did not provide a substantial amount of evidence to prove they could close the gap between the scores. Commission Regalado concurred with Commissioner Cohen Higgins’ comments and voiced her concerns about the administration including additional clauses to RFPs after the evaluation committee made their final decision. She emphasized that the County needed to revamp procurement procedures due to the reoccurring problems and lack of established standards. Commissioner Regalado commented on the “Cone of Silence” and its effect on public input. She noted when applications came before the Board, the application had already been negotiated, and as such the process did not provide the public an opportunity to provide input. She echoed her colleagues’ comments about the need to provide applicants an opportunity to present their bids. Chairman Hardemon asked how the County would benefit from the renegotiations. Mr. Morales stated the administration was concerned about the workforce, training, and apprenticeship, and asked the applicant to address these issues. Commissioner Regalado stated she understood the renegotiations from a policy prospective, but from a procurement prospective, the Mayor added clauses that were not agreed upon in the beginning. Mr. Goldfarb noted that PAH had the legal right to address concerns but noted there were no material change to the FDR application. He stated that additional workforce initiatives were negotiated, but the application itself remained the same. Chairman Hardemon commented that the documents given to the Committee members appeared to favor FDR. Mr. Morales compared both proposals and reviewed the applications’ intent. He noted one applicant provided higher minimal annual guarantee, which won the recommendation. Commissioner Hardemon asked what generated a minimal annual guarantee. Mr. Cutié stated that proposers submitted their own minimal annual guarantee, which could be negotiated, and later would be subjected to annual reviews. Commissioner Regalado stated that the previous pandemic greatly affected minimal annual guarantees, and that the administration decided to find ways to ensure that the County received rent no matter the adverse situation. Mr. Lambert noted that without the information regarding the underground atlas, a company could not successfully revise their design or reconfigure the building as needed. He stated that PAH had the ability to effectively build their proposed hotel with the previously mentioned caveats. Mr. Martel reviewed the MDAD procurement process and emphasized that all applicants were required to conduct their own surveys of the area post selection. Commissioner Bermudez voiced his concerns regarding negotiating contracts from the dais, and its negative impact on public policy. Assistant County Attorney (ACA) Michael Mastrucci stated the Board had the right to review, appeal, and discuss the contract openly. He noted that if the Board decision differed from the administration’s decision, the Board had the power to adjust or negotiate another contract with an alternate bidder. Commissioner Cabrera moved to forward the foregoing proposed resolution to the Board without a recommendation. This motion was seconded by Commissioner Regalado. Discussion ensued between Commissioners Bermudez and Cabrera about repeating presentations at the BCC meeting. Chairman Hardemon stated that once an item came before the Board, all commissioners and the public should have access to all pertinent information regarding the bids, selection committee’s notes, and any other documents. Ms. Uppal stated she would make the information available. Mr. Morales reiterated his previous statement, and noted that the minimum annual guarantee was always provided by the most competitive bidder. Commissioner Cohen Higgins restated her previous comments and briefly reviewed the procurement process and timelines. She noted the administration’s recommendation should be enough to continue with negotiations and pointed out the clauses were added post-selection by the evaluation committee, which did not affect the applicant’s score. Commissioner Regalado reviewed the Board’s rules of procedure related to presentations and maintained the vendor’s presentations would not change the public’s perception of policy. Commissioner Cohen Higgins commented on the procedural process related to Commissioner Cabrera’s motion and straw votes. Following discussions by the Committee members and County Attorney’s Office, Commissioner Cabrera called the question regarding his motion to forward the item to the Board without a recommendation. This motion was previously seconded by Commissioner Regalado and upon being put to a vote, failed because a unanimous vote in support was not received. (Commissioner Cohen Higgins vote “no.”) Commissioner Cohen Higgins moved to forward the foregoing proposed resolution to the Board with a favorable recommendation. This motion was seconded by Commissioner Regalado, and upon being put to a vote, failed with a vote of 3-3 Chairman Hardemon and Commissioners Cabrera and Bastien voted no). To facilitate the item being forwarded to the Board for consideration, Commissioner Regalado moved to vote to forward the foregoing proposed resolution to the Board without a recommendation. There being no further questions or comments, the Committee proceeded to vote on the foregoing proposed resolution, as presented.
Airport and Economic Development Committee 5/10/2023 3F Deferred 6/14/2023 P
REPORT: Chairman Hardemon stated that while he was prepared to hear presentations from the vendors who responded to the solicitation for the new hotel at Miami International Airport (MIA) at today’s (5/10) meeting; however, the circumstances surrounding the item was unusual because three (3) different memorandums were submitted by the County Administration regarding the item before the Committee members had an opportunity to conduct a proper review. He indicated that he wanted to use today’s meeting to provide notice to the vendors about their presentation; and to the Administration so they could respond to questions regarding the solicitation and why three (3) different memorandums were provided to the Committee. Commissioner Regalado agreed with Chairman Hardemon comments and requested an explanation from the County Administration regarding the amount of written correspondence between the County Administration and the vendors. Chairman Hardemon confirmed the notice and presentations would be done at the next committee meeting. Chairman Hardemon further clarified that presentations would be heard and the public provided an opportunity to speak at the next committee meeting. Chairman Hardemon read the names of today’s (5/10) registered speakers into the record: Phil Goldfarb Jordan Bargas Ernie Aloma Susan LaFluer Bernardo Fort-Brescia, and Patricia Botas Chairman Hardemon requested the foregoing resolution be deferred to the June 14, 2023 AEDC Committee meeting to allow for presentations and public comments. In response to Commissioner Cohen Higgins’ inquiry on the coordination of the presentations, Chairman Hardemon indicated he would allow a maximum of 15 minutes for the two (2) responsive bidders. He advised the third party was deemed non-responsive by the County Attorney’s Office. Chairman Hardemon indicated the presentations should cover the developers’ proposals, relevant information that pertaining to the solicited response, an explanation on how the criteria would be met, and reference to the main points that were provided in Mayor Levine Cava’s Memorandums. Commissioner Regalado opined that the procurement process should be kept separate from the presentation. Commissioner Cohen Higgins briefly explained the Selection Committee’s function was to evaluate the proposals and may have impacted the outcome of how the contract was awarded because the presentations were deemed unnecessary. In response to Commissioner Cohen Higgins’ concern as to whether the Committee would duplicate the duties of the Selection Committee, Chairman Hardemon indicated the Committee needed a holistic view to provide feedback and make a decision on the item. With reference to Commissioner Cohen Higgins’ request for a full presentation including the procurement procedures, Chairman Hardemon reiterated the Board would make the final determination and questions about the procurement process could be addressed at that time. Chairman Hardemon stated his intent to meet with the County administration regarding the three (3) memorandums. Commissioner Bastien requested Chief Operations Officer, Jimmy Morales, Office of the Mayor, to develop and provide a timeline report of the MIA hotel project to give current Board of County Commissioners (Board) members a better understanding of the history of the item. She also requested copies of the missing Memoranda of Understanding (MOU) referenced in the report, to be provided for her review. Commissioner Cabrera concurred with his colleagues regarding the number of memos provided to the Committee members and the timeframe in which they were presented. There being no further discussion, the Committee proceeded to defer the foregoing resolution to the June 14, 2023 Airports and Economic Development (AEDC) Committee meeting.
Ed Marquez 5/1/2023 Assigned Office of Agenda Coordination 5/1/2023 5/1/2023
Office of Agenda Coordination 5/1/2023 Assigned County Attorney 6/6/2023
REPORT: SPD - LATE ITEM - NO SPONSOR - PENDING MAY CMTE - ATTACHMENT DEVELOPMENT LEASE AGREEMENT, ATTACHMENT 1 AND 2 - PGS 109
County Attorney 5/1/2023 Assigned David M. Murray 5/2/2023
Legislative Text

TITLE
RESOLUTION APPROVING AWARD OF CONTRACT NO. RFP-01677 TO FDR MIAMI HOTEL LLC WITH A POSITIVE FISCAL IMPACT TO THE COUNTY OF APPROXIMATELY $240,000,000.00 OVER THE 50-YEAR TERM OF THE LEASE TO DESIGN, BUILD, FINANCE, OPERATE AND MAINTAIN A NEW HOTEL AT MIAMI INTERNATIONAL AIRPORT FOR THE MIAMI-DADE AVIATION DEPARTMENT; APPROVING THE LEASE; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE SAME AND EXERCISE ALL PROVISIONS CONTAINED THEREIN PURSUANT TO SECTION 2-8.1 OF THE COUNTY CODE AND IMPLEMENTING ORDER 3-38; AND DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO PROVIDE AN EXECUTED COPY OF THE LEASE TO THE PROPERTY APPRAISER�S OFFICE WITHIN 30 DAYS OF THE EXECUTION OF THE LEASE

BODY
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:

Section 1. This Board approves award of Contract No. RFP-01677 to FDR Miami Hotel LLC to design, build, finance, operate and maintain a new hotel at Miami International Airport for the Miami-Dade Aviation Department, in substantially the form attached hereto and made a part hereof, as set forth in the incorporated memorandum with a positive fiscal impact to the County of approximately $240,000,000.00 over the 50-year term; and authorizes the County Mayor or County Mayor�s designee to execute same and exercise all provisions contained therein pursuant to section 2-8.1 of the County Code and Implementing Order 3-38.

Section 2. The County Mayor or the Mayor�s designee is hereby directed to provide to the Property Appraiser�s Office an executed copy of the lease within 30 days of its execution.

HEADER
Date:

To: Honorable Chairman Oliver G. Gilbert, III
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor

Subject: Recommendation for Approval to Award the New Hotel at Miami International Airport

STAFF RECOMMENDATION
Summary
This item is recommending award of a contract to establish a revenue generating lease agreement for the design, build, financing, operation and maintenance of a new hotel located at Miami International Airport (MIA) for the Miami-Dade Aviation Department. The recommended proposer is FDR Miami Hotel, LLC which is a joint venture formed by Fontainebleau Development, LLC and The Related Companies. This contract is the fulfillment of the County�s long-planned hotel on County-owned property, consistent with world-class standards for international airports and accommodating the present and future needs of passengers at the MIA. The anticipated revenue to the County is $240,000,000 for the 50-year lease term.

Recommendation
It is recommended that the Board of County Commissioners (Board) approve a competitive contract award, Contract No. RFP-01677, New Hotel at Miami International Airport, to FDR Miami Hotel, LLC (FDR) for the Miami-Dade Aviation Department. The recommended proposer, FDR, was the highest-ranked in the competitive process, offering the best technical and financial solutions. There were no adverse findings relating to vendor responsibility.

The resolution does the following:
1) Authorizes the lease of County-owned property, consisting of approximately 79,133 square feet (1.82 acres) of land, together with rental of parking spaces in an MIA garage for valet parking; and
2) Authorizes the lease term of 50 years. The lease becomes effective the first day of the month following the effective date of the resolution approving the lease. The lease is subject to approval by the Federal Aviation Administration (FAA), which will occur before the effective date.

Contract Details:
FDR will be responsible for the design, build, financing, operation, and maintenance of the new hotel. Such responsibilities also include all costs associated with the operations and maintenance of the hotel including but not limited to, the costs of utilities, insurance, applicable taxes, preventive maintenance, and life-cycle replacements for all building components. The proposed new hotel offers an investment within the project site to bring it to its highest and best economic development and aviation-related use supported by the market. The hotel will provide for functional and aesthetic integration of the project site with MIA and will encourage use of MIA. The hotel will be consistent with world-class standards for international airports and capable of accommodating both the present and future needs of passengers, offering the following to meet or exceed the County�s goals:

a) Upper Upscale hotel (a classification by STR, Inc. that sets benchmarking standards for hotels, and which is also known as a four-star hotel);
b) 451 keys and amenities to include a sit down, all day full-service restaurant/bar; rooftop restaurant; pool with terrace; business/meeting/event space; fitness center; and spa;
c) Valet parking; and
d) A climate-controlled pedestrian connection bridge between the hotel and Concourse D.
The lease requires Leadership in Energy and Environmental Design (LEED) Silver Certification for the project, and FDR has committed to pursuing LEED Gold Certification. Additionally, compliance with all requirements of the County�s Sustainable Buildings Program, as set forth in Sections 9-71 through 9-75 of the County Code and Implementing Order 8-8 is required. FDR has included on their team, SEQUIL Systems, Inc., as a sustainability consultant. The Art in Public Places Program applies and will be incorporated into the hotel design and construction.

Scope
Miami International Airport is located in County Commission District 6, which is represented by Commissioner Kevin Cabrera, and is an asset of County-wide significance. In accordance with Resolution No. R-380-17, written notice of the lease was provided to the District Commissioner.

Fiscal Impact/Funding Source
The fiscal impact for the 50-year term is $240,000,000 in revenue to the County.

The projected revenue is based on rent payments by FDR to the County, including annual increases per the lease. From the effective date of the lease, FDR will pay a premises rent in the amount of $2.50 per square foot of the development site which equals approximately $197,832 for the first year of the lease. The premises rent will be subject to adjustments, as appraised yearly and approved by the Board in the Annual Published Rates and Charges approved through the annual budget process. Therefore, the premises rent is anticipated to be at least $20,000,000 over the term of the lease.

When the hotel opens, anticipated to be in year four of the lease, FDR will also pay the higher of either a $2,500,000 minimum annual guarantee (MAG) or 3.5% of gross revenue. The MAG is subject to annual increases based on the percentage increase in the applicable Consumer Price Index. Therefore, the minimum amount for the MAG is expected to be at least $220,000,000 over the term of the lease. However, the revenue to the County may be substantially higher after the initial years of hotel operations, as it is expected that 3.5% of the gross revenue will outperform the MAG.

Department Allocation Funding Source Contract Manager
Aviation $240,000,000 Revenue Generating Sylvia Novela
Total: $240,000,000

Track Record/Monitor
Rita Silva of the Strategic Procurement Department is the Chief, P3 and Innovative Procurement. Robert Warren of the Miami-Dade Aviation Department is the Assistant Director who will monitor the lease.

Delegated Authority
If this item is approved, the County Mayor or County Mayor�s designee will have the authority to exercise all provisions of the lease agreement pursuant to 2-8.1 of the County Code and Implementing Order 3-38, including any termination provisions. The County shall have the right, at any time, without cause, to terminate the lease if the property is required for airport development purposes, or any other purpose determined by the Board. A copy of the lease will be provided to the Property Appraiser�s Office within 30 days of its execution.

Vendor Recommended for Award
As FDR Miami Hotel, LLC is a joint venture, the local address and employee numbers are representative of the joint venture partner Fontainebleau Development, LLC which is headquartered in Miami-Dade County. Each joint venture member of FDR has the requisite qualifications and experience to successfully provide the new hotel at MIA. Fontainebleau Development, LLC is a local real estate and investment firm with hotel projects that include The Fontainebleau Miami Beach Resort and Hilton Nashville Downtown. The Related Companies is a global real estate firm with hospitality and airport projects including the Hudson Yards neighborhood in Manhattan which includes a hotel and the Newark Airport Parking Facility with a pedestrian bridge connection to the terminal. Furthermore, these two companies have experience working together on projects including the Marriott Courtyard Downtown Boston and a private service center at the Miami-Opa Locka Executive Airport. Fontainebleau Development also has a hotel project, the JW Marriott Turnberry in Aventura. The designer, general contractor and facility operator which are Arquitectonica International Corp.; Moss & Associates LLC; and FB Management LLC, respectively all have local addresses.

Vendor Principal Address Local Address* Number of Employee Residents Principal
1) Miami-Dade
2) Percentage*
FDR Miami Hotel LLC 30 Hudson Yards New York, NY 19950 W Country Club Drive, Aventura, FL 34 Brett Mufson
51%
*Provided pursuant to Resolution No. R-1011-15. Percentage of employee residents is the percentage of vendor�s employees who reside in Miami-Dade County as compared to the vendor�s total workforce.

Vendors Not Recommended for Award
Vendor Local Address Reason for Not Recommending
Parmco Airport Hospitality, LLC Yes Evaluation Scores/Ranking
Mainsail Development International, LLC No Deemed non-responsive by the County Attorney�s Office (opinion attached)

Due Diligence
Pursuant to Resolution No. R-187-12, due diligence was conducted in accordance with the Strategic Procurement Department�s guidelines to determine vendor responsibility, including verifying corporate status and that there are no performance and compliance issues through various vendor responsibility lists and a keyword internet search. The lists that were referenced included convicted vendors, debarred vendors, delinquent contractors, suspended vendors, and federal excluded parties. There were no adverse findings relating to vendor responsibility.

Applicable Ordinances and Contract Measures
� The two percent User Access Program provision does not apply.
� The SBE - A&E, Construction, Goods and Services Programs apply. The lease includes provisions for the Small Business Enterprise (SBE) programs. For the SBE Architectural & Engineering (A&E) Program, the project was assigned a 15% SBE-A&E Goal. FDR is in compliance and will meet the goal with the following SBE firms: Botas Engineering, Inc.; One Line Design Studio, LLC; and SDM Consulting Engineers, Inc. FDR will use additional SBE firms during the construction phase under the County�s SBE Construction Services Program, and during the facility operations phase under the SBE Goods and Services Programs; with such SBE participation to be determined during the applicable phase of the project.
� The Airport Concession Disadvantaged Business Enterprise (ACDBE) Program applies.
� Local Preference does not apply per FAA requirements.
� The Responsible Wages and Benefits Ordinance applies.
� The Living Wage Ordinance applies.
� The Labor Peace Agreement Resolution applies.


__________________________
Jimmy Morales
Chief Operations Officer


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