TERM SHEET
PROPOSED GROUND LEASE AND MASTER DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF MIAMI AND MIAMI FREEDOM PARK, LLC
July 17, 2018
This Term Sheet outlines the basis upon which the City of Miami (the “City”) would lease to
Miami Freedom Park, LLC (“MFP”) certain real property owned by the City and generally located
at 1400 N.W. 37th Avenue, Miami, Florida 33125. The proposed transaction is subject to: (i)
approval by the City’s qualified electors of an amendment to Section 29-B of the City’s Charter,
as amended, to authorize the City Commission to waive competitive bidding and negotiate a
Ground Lease and Master Development Agreement (the “Lease”) with MFP; and (ii) the
negotiation, execution and delivery by the City and MFP of a mutually acceptable and legally
binding definitive Lease consistent with the following provisions:
1.

Leased Premises and Term:

Approximately seventy-three (73) acres (the “Leased
Premises”) of the property generally located at 1400
N.W. 37th Avenue, Miami, Florida 33125, identified
as all or portions of folio numbers 01-3132-000-0080
and 01-3132-000-0090, currently known as the
Melreese Golf Course (the “Property”). The term will
be 39 years, with MFP’s option to extend for two
additional 30-year periods, for a total term of up to 99years.

2.

Permitted Uses:

Construction, development and use of: (i) a
professional soccer complex inclusive of an
approximately 25,000 seat stadium and related
facilities (the “Soccer Stadium”); and (ii) ancillary
development, including, but not limited to, (a) a
minimum of 1,000,000 square feet of office, retail and
entertainment uses, and (b) approximately 750 hotel
rooms and conference center (the “Ancillary
Development”).

3.

Annual Rent:

Annual rent payable to the City by MFP will be equal
to the greater of (a) the Fair Market Value of the
Leased Premises or (b) 5.0% of the Rent from the
Ancillary Development, but under no circumstances
less than $3,577,000 per year. The “Fair Market
Value” will be based on the highest and best use of the
Demised Premises taking into consideration the actual
cost of environmental remediation for the Property,
the site development cost for the Park (as defined
below), and such other impositions and limitations on
the use of the Property consistent with the Uniform
Standards of Professional Appraisal Practice). The
Fair Market Value will be determined through the

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 selection of independent appraisers through a process
mutually acceptable to the parties. The term “Rent”
will mean the gross rent revenue derived by MFP from
the lease of any portion of the Ancillary Development
on the Demised Premises exclusive of the Demised
Premises’ pass-through operating expenses paid by
tenants to MFP under such leases.
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8.

No City Funding:

MFP, at no cost to the City, will fund the development
of the Soccer Stadium and the Ancillary
Development. For avoidance of doubt, the City will
have no obligation to pay for any portion of the
development of the Soccer Stadium or the Ancillary
Development, including any cost associated with the
environmental remediation of the Leased Premises.

Capital Transactions Fee:

MFP will pay to the City an amount equal to 1% of
the gross proceeds received by MFP from any Capital
Transaction. The phrase “Capital Transaction” means
any transfer of the interests of MFP in the Lease which
results in a change of control.

Public Park:

On or prior to the issuance of a certificate of occupany
for the Soccer Stadium, MFP will complete the site
development work for the approximately 58 acre
public park adjacent to the Demised Premises (the
“Park”). The site development work will consist of (i)
the environmental remediation necessary for the
public use of the Park, and (ii) such draining,
dredging, excavating, filling, grading, and earthwork
as necessary to complete the Park pursuant to the
specifications set forth in the Lease.

Additional Park Contribution
and Baywalk-Riverwalk
Committment:

No Net Loss:

In addition to the annual rent and the site development
for the Park, MFP will contribute to the City
$20,000,000, payable over 30 years in equal annual
installments, for improvements to greenspace and
parks.
In addition to the $20,000,000 for
improvements to greenspace and parks, MFP will
contribute an additional $5,000,000 for the
completion of the City’s Baywalk-Riverwalk Project.
MFP will comply with the existing No Net Loss
Policy in the City of Miami Comprehensive Plan. The
amount of acreage required to comply with such
policy, as a result of the rezoning of such property,

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 will be determined in a manner consistent with the
City’s past practice and will be satisfied prior to the
issuance of a certificate of occupany for any structures
in the rezoned property.
9.

Environmental Remediation:

MFP will be responsible for all environmental
remediation of the Property, including the Park and
the Leased Premises. The environmental remediation
plans will be developed by MFP, at its sole cost, and
will be subject to approval by the Miami-Dade County
Department
of
Environmental
Resources
Management. MFP currently estimates that the
environmental remediation costs for the development
will be approximately $35 million.

10.

Living Wage and Labor
Peace Agreement:

MFP and its affiliates will pay its Covered Employees
a living wage of no less than $15.00 per hour without
health benefits; or a living wage of no less than
$13.19 an hour with health benefits. The phrase
“Covered Employees” means those hourly
employees of MFP and its affiliates who primarily
work at the Demised Premises.
MFP has
commenced negotiations with Unite Here, Local
355, on a Labor Peace Agreement.

11.

First Tee Commitment:

MFP will make available space within the Ancillary
Development to the First Tee Program for its
educational programs and will design the Park, with
the consent of the City, to include driving ranges and
other amenities for use by the First Tee Program.

12.

Professional Services
Agreement Termination
Fee:

The Professional Services Agreement between the
City and Delucca Enterprises, Inc., terminates on
September 30, 2021 (the “PSA”). The PSA provides
the City the right to terminate the PSA prior to such
termination date, which may require the payment of a
termination fee. If required to terminate the PSA,
MFP will reimburse the City for the amount of such
termination fee.

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