Legislative Matter

Miami-Dade Legislative Item
File Number: 231547

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Clerk's Official Copy

File Number: 231547

File Type: Resolution

Status: Adopted

Version: 0

Reference: R-974-23

Control: Pending BCC Assignment

File Name: FIRST AMENDMENT TO DECLARATION OF RESTRICTIONS (AMAZON)

Introduced: 8/9/2023

Requester: Internal Services

Cost:

Final Action: 11/7/2023

Agenda Date: 11/7/2023

Agenda Item Number: 8F1

Notes:

Title:

RESOLUTION AUTHORIZING AN AMENDMENT TO THE DECLARATION OF RESTRICTIONS APPLICABLE TO THE PROPERTY LOCATED AT 27505 SW 132 AVENUE AND IDENTIFIED BY FOLIO NUMBER 30-6935-000-0400 (“PROPERTY”) EXTENDING THE DEADLINE BY WHICH THE OWNER, AMAZON.COM SERVICES, LLC, A DELAWARE LIMITED LIABILITY COMPANY, MUST COMPLETE THE PROJECT AND CREATE NECESSARY JOBS BY 12 MONTHS; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO EXECUTE THE AMENDMENT, TO EXERCISE ALL RIGHTS CONFERRED THEREIN, AND TO TAKE ALL ACTIONS NECESSARY TO EFFECTUATE SAME

Indexes:

NONE

Sponsors:

Kionne L. McGhee, 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	11/7/2023	8F1	Adopted				P
REPORT:	Commissioner Cohen Higgins voiced her concerns about granting the extension since the timeframe outlined in the original proposed item to create the jobs was not met. She spoke about the importance of the private sector honoring commitments made to the County and inquired if the language in the proposed resolution could be strengthened to prevent additional extensions. Mr. Alex Munoz, Director, Internal Services Department (ISD), noted the provision limiting extension requests was not included in the subject contract but confirmed it could be added to future contracts. He noted construction of the facility was underway and explained that Amazon had requested an extension due to economic and supply-chain issues. Mr. Munoz advised that the company planned to complete staffing and begin operations by 2025. Commissioner McGhee asked if there was a way to work with Amazon to ensure that the surrounding communities benefited from economic development opportunities. Mr. Munoz stated that ISD could do outreach, along with working with Amazon to secure a commitment to the community. Mr. Sam Bailey, Amazon’s Economic Development Policy Manager, stated the company planned to launch the facility in the next year with a goal to leverage their workforce staffing teams to conduct local hiring fairs within South Dade. He noted that Amazon was working with local organizations to hire a minimum of 325 workers, and thanked the Commissioners for the extension. Commissioner McGhee inquired about community benefits other than job creation. Mr. Bailey stated that Amazon contributed over $1.1 million in community engagement to nonprofit organizations that contribute to the economic welfare of the County. Additionally, he noted that associates hired at the facility would be eligible for “Career Choice” if they maintained employment for more than 90 days. Mr. Bailey explained the “Career Choice” initiative which included vocational or higher education options. There being no further questions or comments, the Board proceeded to vote on the foregoing resolution, as presented.

Board of County Commissioners	10/3/2023	8F4	Deferred		11/7/2023

Office of the Chairperson	9/28/2023		Deferrals
REPORT:	The Prime Sponsor is requesting deferral to the November 7, 2023 Board of County Commissioners meeting.

Airport and Economic Development Committee	9/13/2023	3H	Forwarded to BCC with a favorable recommendation
REPORT:	Chairman Hardemon introduced the foregoing proposed resolution. Commissioner Regalado inquired about the reason for the extension. Mr. Alex Muñoz, Director, Internal Services Department (ISD) indicated the Mayor’s memorandum noted all deliverables other than the job component had been satisfied and noted the extension would allow Amazon to hire employees. Responding to Commissioner Regalado’s question about the need for an entire year’s extension, Mr. Munoz noted Amazon was committed to filling 325 vacancies which they planned to have completed within the year. Commissioner Regalado voiced her concerns regarding the year long extension and asked if the hiring process could be done in phases. Commissioner Regalado requested Mr. Alex Muñoz, Director, and Internal Services Department (ISD) to prepare and provide a report detailing the timeline and plans proposed by Amazon.com Services, LLC to complete the hiring process to fill the 325 new jobs agreed upon by the company pursuant to Resolution No. R-655-20. Mr. Muñoz stated he would contact Amazon to obtain more information about the company’s hiring plans and noted Page one (1) of the fiscal impact statement provided information regarding the jobs. Commissioner Cohen Higgins pointed out the Amazon Logistics site was located in Homestead and raised concerns regarding reports of Amazon closing facilities because the company had overextended itself. She stated that she was doubtful Amazon would meet the hiring requirements within a reasonable time because the facility had remained unoccupied for the past several months and inquired about the consequences of the facility not opening. Mr. Muñoz stated the job fulfillment component was part of the compliance requirements and noted issues with the supply chain had also contributed to the delay in construction. He pointed out the facility was a large investment and assured the Committee members that he would provide the information being requested once he contacted Amazon. Chairman Hardemon questioned whether any improvements such as electrical and drywall installation had been made on the structure. Mr. Muñoz noted the interior work was being completed. Responding to Commissioner Regalado’s inquiry about the certificate of occupancy (CO), Mr. Munoz confirmed that the CO was issued in June. There being no further questions or comments, the Committee proceeded to vote on the foregoing proposed resolution, as presented.

County Attorney	8/10/2023		Assigned	Monica Rizo		9/7/2023

Ed Marquez	8/9/2023		Assigned	Office of Agenda Coordination	8/9/2023	8/9/2023

Office of Agenda Coordination	8/9/2023		Assigned	County Attorney	10/3/2023
REPORT:	ISD - Commissioner McGhee sponsor - pending September cmte - County attorney Monica Rizo Perez - attachments 1, exhibit A - PGS 10

Legislative Text

TITLE
RESOLUTION AUTHORIZING AN AMENDMENT TO THE DECLARATION OF RESTRICTIONS APPLICABLE TO THE PROPERTY LOCATED AT 27505 SW 132 AVENUE AND IDENTIFIED BY FOLIO NUMBER 30-6935-000-0400 (�PROPERTY�) EXTENDING THE DEADLINE BY WHICH THE OWNER, AMAZON.COM SERVICES, LLC, A DELAWARE LIMITED LIABILITY COMPANY, MUST COMPLETE THE PROJECT AND CREATE NECESSARY JOBS BY 12 MONTHS; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE THE AMENDMENT, TO EXERCISE ALL RIGHTS CONFERRED THEREIN, AND TO TAKE ALL ACTIONS NECESSARY TO EFFECTUATE SAME

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying Mayor�s memorandum, a copy of which is incorporated herein,

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

Section 1. This Board incorporates and approves the foregoing recitals, the exhibits to this resolution, and the accompanying Mayor�s memorandum as if fully set forth herein.

Section 2. This Board hereby approves the terms of, and authorizes the execution by, the County Mayor or County Mayor�s designee of the First Amendment to Declaration of Restrictions with Amazon.com Services, LLC for the property located at 27505 SW 132 Avenue, and identified by Folio No. 30-6935-000-0400 in substantially the form attached hereto, and further authorizes the County Mayor or County Mayor�s designee to exercise all rights conferred in the Declaration as amended, and to take all actions necessary to effectuate same.

Section 3. Pursuant to Resolution No. R-974-09, this Board: (a) directs the County Mayor or County Mayor�s designee to record the First Amendment to Declaration of Restrictions in the Public Records of Miami-Dade County and to provide a recorded copy of the instrument to the Clerk of the Board within 30 days of execution of said instrument; and (b) directs the Clerk of the Board to attach and permanently store a recorded copy of the instrument together with this resolution. This Board further directs the County Mayor or County Mayor�s designee to provide a copy of this First Amendment to Declaration of Restrictions to the Property Appraiser within 30 days of the effective date of this resolution.

HEADER
Date:

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

From:Daniella Levine Cava
Mayor

Subject: Resolution Authorizing the Execution of an Amendment to the Declaration of Restrictions for the Property Conveyed to Amazon.com Services, LLC for Economic Development Purposes and Located at 27505 SW 132 Avenue, Homestead, Florida 33032

STAFF RECOMMENDATION
Executive Summary
This item seeks approval from the Board of County Commissioners (Board) to extend the deadlines set forth in the Declaration of Restrictions applicable to the property located at 27505 SW 132 Avenue, and identified by Folio No. 30-6935-000-0400 (Property), which was conveyed to Amazon.com Services, LLC (Amazon) for economic development purposes pursuant to Section 125.045, Florida Statutes, as authorized by Resolution No. R-655-20.

Approval of this Amendment to the Declaration of Restrictions is beneficial as Amazon has clearly demonstrated its commitment to the community and project by investing over $129,000,000 in capital on the Property. Amazon has endured delays due to �various macroeconomic issues such as industry-wide supply chain challenges and inflationary pressures that have impacted not only this site but Amazon�s entire network of facilities.� A twelve-month extension is requested to avoid future amendments in the event of unanticipated changes in the economy.

Based on the foregoing, the Amendment is recommended as being in the best interest of the County, particularly in light of the substantial investment which already has been made by Amazon. The proposed terms and conditions set forth in the Amendment continue to satisfy economic development purposes while ensuring that the development proceeds notwithstanding current market conditions.

Recommendation
It is recommended that the Board adopt the attached Resolution authorizing the execution of the First Amendment to the Declaration of Restrictions (Amendment) for the Property to extend the deadlines set forth therein by one year. The Amendment is attached to the Resolution as Attachment 1.

Scope
The Property is located in Commission District 9, which is represented by Commissioner Kionne L. McGhee.

Delegation of Authority
The resolution authorizes the County Mayor or the County Mayor�s designee to execute the Amendment, which will extend the deadlines set forth in the Declaration of Restrictions by one year.

Fiscal Impact/Funding Source
There is no direct fiscal impact to the County resulting from this Amendment. However, the Amendment will extend the deadline by which Amazon must substantially complete the project and create 325 full-time jobs, which will delay the economic development benefits to the community for a maximum of one year.

Track Record/Monitor
To date, Amazon has complied with the various restrictions set forth in the Declaration of Restrictions. Jessica Gutierrez, Real Estate Officer of the Internal Services Department�s Real Estate Development Division, oversees Amazon�s compliance with the Declaration of Restrictions.

Background
On July 8, 2020, the Board approved Resolution No. R-655-20 for the Property (formerly having an address of 13200 SW 272 Street, Miami, FL 33032 and identified by Folio Nos. 30-6935-000-0400 and 30- 6935-000-0061) to be sold to Amazon for economic development purposes pursuant to Section 125.045, Florida Statutes. The property was sold to Amazon for the appraised market value of $22,056,853 pursuant to a deed dated September 14, 2020, and recorded in Official Records Book 32015, Page 4918.

The conveyance of the Property to Amazon was subject to Amazon�s continued compliance with various restrictions set forth in the Declaration of Restrictions which, among other requirements and restrictions: (i) requires the use of the Property for the development and operation of a distribution building of no less than 1,000,000 square feet with associated office space, and warehouse space, to be used to receive, store, assemble, ship, distribute, prepare, sell, and serve as pick-up/drop-off location for products, materials, food, grocery, and liquor items, and ancillary uses; (ii) requires Amazon to invest $80,000,000 into the Property in connection with the Project, to include soft costs and construction costs; (iii) requires Amazon to substantially complete the Project no later than September 18, 2023 (Completion Deadline); (iv) and requires the creation of a minimum of 325 full-time or full-time equivalent permanent jobs with an average annual salary of no less than the greater of $32,000 or the then current Living Wage (Job Requirement).

To date, Amazon has complied with the various restrictions set forth in the Declaration of Restrictions and has incurred over $129,000,000 in capital investments into the Property. The facility was granted a Temporary Certificate of Occupancy on June 21, 2022, but has not yet been fully equipped with all necessary equipment and furnishings to commence operations of the distribution facility.

On April 26, 2023, Amazon submitted a request to extend the Completion Deadline and the related Job Requirement by twelve months, indicating that the project has been delayed due to �various macroeconomic issues such as industry-wide supply chain challenges and inflationary pressures that have impacted not only this site but Amazon�s entire network of facilities.� Amazon specified that they are actively procuring the necessary equipment and anticipate its installation by Spring 2024, but has requested additional months to avoid future amendments in the event of unanticipated changes in the economy.

The commencement date of the Declaration, as of the date of recordation, is September 18, 2020. The proposed Amendment attached as Attachment 1 to the Resolution amends the definition of Effective Date by twelve months to September 18, 2021, resulting in the extension of the obligations, milestones, and terms of the Declaration. The Completion Deadline and associated Job Requirement deadline are thereby extended to September 18, 2024, while also extending the term for which Amazon must continue to comply with the Declaration of Restrictions to a total of a twenty-one-year period.

Edward Marquez
Chief Financial Officer