Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Authorizing The Appropriate City Officials To Execute A Fourth Amendment To Renew The License Agreement With MVHF, LLC And The Hollywood Community Redevelopment Agency For Five Years, With An Option To Renew, Under The Same Terms And Conditions, For The Property Identified As The Johnson Street Parcel.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
On February 11, 2011, the City entered into a 99-year Development Agreement and Ground Lease, 10-year License Agreement for the Intracoastal Parcel located at 1112 N Ocean Drive, and five-year License Agreement for the Johnson Street Parcel (“JSP Agreement”). The License Agreements included a clause that allowed for the transfer of the license(s) when the lease or the resort hotel transferred to a third party (successor). MVHF, LLC is the successor in interest to Margaritaville Hollywood Beach Resort, LLC.
The JSP Agreement provides for the use, operation and maintenance responsibilities and obligations of the Johnson Street Parcel by the Developer, the City, and the Community Redevelopment Agency (“CRA”). The term of the JSP Agreement commenced on the date the Margaritaville resort opened to the general public (October 1, 2015) and continued for a period of five years thereafter.
The JSP Agreement was amended in 2016 to include an annual allocation of $41,600.00 from the CRA to offset police security expenses associated with the bandshell area. This allocation represents just under 30% of the cost of police security for the Bandshell Area with the Margaritaville resort currently spending over $145,000.00 per year. It is also important to note that the Margaritaville resort spends over $250,000.00 per year in entertainment programming at the bandshell.
On October 21, 2020, the City Commission passed Resolution No. R-2020-269, which authorized a Renewal and Second Amendment to the JSP License Agreement for a one-year term. On July 7, 2021, the City Commission passed Resolution No. R-2021-175, which authorized a Renewal and Third Amendment to the JSP Agreement for a five-year term. At this time the City of Hollywood, the CRA, and MVHF, LLC wish to enter into this Fourth Amendment renewing the JSP Agreement for a five-year term commencing on October 1, 2026 and expiring on September 30, 2031 with an option to renew for an additional five-year period. It should be noted that the Beach District of the CRA will cease on June 25, 2027, so the responsibilities and obligations of the Beach District of the CRA will become those of the City at that time.
The Director of Communications, Marketing, and Economic Development recommends that the City Commission authorize the appropriate City Officials to execute an amendment to the JSP Agreement with MVHF, LLC for a period of five years.
Fiscal Impact:
The renewal of the License Agreement among the City of Hollywood, MVHF, LLC and the CRA will be at no cost to the City up through June 25, 2027. After that date and the expiration of the Beach District of the CRA, the City will assume responsibility for the $41,600.00 referenced above, prorated for Fiscal Year 2027 and then the full annual amount for the duration of the License Agreement.
Recommended for the inclusion on the agenda by:
Joann Hussey, Director, Communications, Marketing, and Economic Development
Jose Cortes, Assistant City Manager