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This is a civil action seeking declaratory relief. This Court has jurisdiction of the
subject matter pursuant to Article 5, Section 5(b) of the Florida Constitution as implemented by
Section 26.012(2)(c) of the Florida Statutes.
Parties
2.
Florida.
3.
Florida.
4.
the State of Florida, and has committed one or more of the acts or omissions hereinafter
described within the City of Miami.
5.
the State of Florida, and has committed one or more of the acts or omissions hereinafter
described within Miami-Dade County, Florida.
Nature of Action
6.
This is an action challenging the validity and effect of the Proposed Amendment
Section 3 of the City of Miami Charter grants the City the authority [t]o lease to
or contract with entities for the management of any of the citys waterfront property. This grant
of authority is conditioned on compliance with the other requirements of the Charter and
mandates that any lease or management agreements entered into by the City that exceed five
years be approved by a majority of the voters of the city. See Miami-Dade Charter
3(f)(iii)(E). See also City of Miami Charter Section 29-B (stating that the sale or lease of
certain city-owned property is subject to the approval of a majority of the votes cast by the
electorate at a referendum).
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8.
Section 6.01 of the Miami-Dade County Home Rule Charter provides that [t]he
right of self determination in local affairs is reserved and pre-reserved to the municipalities . . . .
Miami-Dade County Home Rule Charter 6.01. Section 6.02 of the Charter provides that:
Each municipality shall have the authority to exercise all powers relating
to its local affairs not inconsistent with this Charter. Each municipality
may provide for higher standards of zoning, service, and regulation than
those provided by the Board of County Commissioners in order that its
individual character and standards may be preserved for its citizens.
Miami-Dade County Home Rule Charter 6.02. Thus, the City has the power to condition
development within its boundaries on the will of the electorate as expressed in a City-wide
referendum.
9.
In accordance with Sections 3 and 29-B of the City of Miami Charter, the City
Commission unanimously adopted Resolution R-14-0227. The Resolution called for a Special
Election to be held on August 26, 2014 asking voters to approve a 53-year extension of the
Citys lease with the proprietors of the Bayside Marketplace, a popular retail and dining
destination located on Biscayne Bay.
10.
Existing Leases of City-Owned Waterfront Land at Bayside Marketplace. The purpose of the
proposal, however, was not just the lease extension of the popular tourist attraction, but also the
approval of a $400 million, 1,000 foot observation and entertainment tower called Skyrise
Miami.
11.
The ballot language expressly conditioned approval of the lease extension on the
development of a $400 million privately funded 1,000 foot observation and entertainment
tower known as Skyrise Miami. The ballot states in pertinent part:
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A Special Election was held on August 26, 2014. Based on the representation that
the Skyrise Miami project would be privately funded, the Referendum was approved by
68.35% of the electorate.
13.
Contrary to the express language of the ballot, the projects developers have
In 2004, voters approved a series of ballot questions which authorized the County to
implement the Building Better Communities General Obligation Bond Program to fund
development meant to improve the quality of life in the County. Bond Question 3, which the
County contends authorizes the $9 million subsidy to the Skyrise Miami project, was itself
misleading insofar as it provided that the bonds would be used to support public infrastructure
improvements and quality of life projects (such as improvements to walkway, bikeways, and
bridges) without alerting voters that the bonds would also subsidize private development to the
tune of millions of dollars, as is the case here.
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15.
Resolution R-1121-14, which allocated $9 million in public funds for the privately funded
project approved by voters. The County Mayor or his designee were given 120 days to negotiate
the terms of a grant agreement with Skyrise Miami LLC for those funds.2
16.
The language of the Referendum misled the public, flew under false colors, and
hid the ball in violation of Florida Statute 101.161. The ballot question states that the
Skyrise Miami project will cost taxpayers nothing because the project will be entirely privately
funded. However, pursuant to Resolution R-1121-14, the Skyrise Miami project will in fact be
subsidized by at least $9 million in public funds allocated by Miami-Dade County. State monies
are also being sought to help the project.
17.
The Referendum also violates Sections 3 and 29-B of the City of Miami Charter,
which conditions the approval of certain lease agreements on City-owned, waterfront land
(including the lease agreements and land at issue here) on approval by a majority of public
voters. The publicly-funded Skyrise Miami project was not authorized by the voters as required
by the Charter because the voters approved a privately-funded project.
18.
project violated Sections 6.01 and 6.02 of the Miami-Dade County Home Rule Charter because it
interferes with the Citys sovereign right to condition development of the Skyrise Miami project
on the use of private funds.
The December 16, 2014 Board of County Commissioners vote that approved $9 million
in public funds for the Skyrise Miami project was procedurally deficient. The Board of County
Commissioners was initially presented with Agenda Item 11A1, which sought to approve the
$9 million public grant request, on November 5, 2014. That vote ended in a tie. Under County
Code Rule 7.01, the Board was not permitted to vote again on the same item for a period of at
least six months following the original vote.
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COUNT I
Violation of Florida Statute 101.161
19.
Plaintiffs repeat and reallege the foregoing paragraphs 1 to 18 as if fully set forth
20.
herein.
public measure to be printed in clear and unambiguous language on the ballot and be an
explanatory statement, not exceeding 75 words in length, of the chief purpose of the measure.
The ballot title must consist of a caption, not exceeding 15 words in length, by which the
measure is commonly referred to or spoken of.
21.
submitted to the voters is to advise voters sufficiently to enable them to intelligently cast their
ballots. The ballot title and summary must give voters fair notice of the decision they must
make, so that voters will not be misled as to its purpose, and can cast informed ballots. It is
unlawful for a ballot title and/or summary for a proposed public measure to either fly under
false colors or hide the ball as to the measures true effect.
22.
Here, the ballot title and summary of the Referendum violated Section
101.161(1), Florida Statutes, by misleading voters as to the use of public funds to develop the
Skyrise Miami project.
23.
In sum, the ballot title and summary materially misled voters by flying under
false colors and hiding the ball as to the true effect of the measure.
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COUNT II
Violation of Sections 3 and 29-B of the City of Miami Charter
24.
Plaintiffs repeat and reallege the foregoing paragraphs 1 to 18 as if fully set forth
25.
Sections 3 and 29-B of the City of Miami Charter require approval by a majority
herein.
of the voters of the city of certain leases of City-owned waterfront property, including the
proposed 53-year lease extension between the City and the proprietors of the Bayside
Marketplace.
26.
The City violated its Charter by presenting a ballot title and summary that
purports to extend the Citys lease of the Bayside Marketplace conditioned on the construction of
a privately-funded observation and entertainment tower, without disclosing that the developers
would seek millions of dollars of public monies for the project. Because the Referendum did not
inform voters of the massive influx of public monies that would be used to develop the Skyrise
Miami project and because the voters approved a privately-funded project, the City did not
obtain the requisite voter approval to extend the Bayfront Marketplace lease and develop the
Skyrise Miami project.
COUNT III
Violation of Sections 6.01 and 6.02 of the
Miami-Dade County Home Rule Charter
27.
Plaintiffs repeat and reallege the foregoing paragraphs 1 to 18 as if fully set forth
28.
Section 6.01 of the Miami-Dade County Home Rule Charter provides in pertinent
herein.
part:
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project violated Sections 6.01 and 6.02 of the Miami-Dade County Home Rule Charter because it
interferes with the Citys sovereign right to condition development of the Skyrise Miami project
on the use of private funds.
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs pray that the Court enter judgment against Defendants,
awarding Plaintiffs all appropriate relief, including the following:
(i)
A declaration that the subject ballot titles and/or summaries from the August 26,
2014 Special Election violate Section 101.161, Florida Statutes.
(ii)
A declaration that voter approval of the Referendum could not, nor did not, have
any official effect.
(iii)
(iv)
(v)
Such other and further relief as the Court may deem just and proper.
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Respectfully submitted,
CARLTON FIELDS JORDEN BURT, P.A.
Miami Tower, Suite 4200
100 S.E. Second Street
Miami, Florida 33131
Telephone: (305) 530-0050
Facsimile: (305) 530-0055
By: /s/ Richard J. Ovelmen
Richard J. Ovelmen (Fla. Bar No. 284904)
rovelmen@cfjblaw.com
Enrique D. Arana (Fla. Bar No. 189316)
earana@cfjblaw.com
Justin S. Wales (Fla. Bar No. 99212)
jwales@cfjblaw.com
Attorneys for Plaintiffs
Raquel Regalado and Norman Braman
100049505
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EXHIBIT A
ELECCIONES ESPECIALES
MIAMI, FLORIDA
26 DE AGOSTO DEL 2014
ELEKSYON ESPESYAL
MIAMI, FLORID
26 DAWOUT 2014
CITY OF MIAMI
CIUDAD DE MIAMI
VIL MIAMI
CITY OF MIAMI
CIUDAD DE MIAMI
VIL MIAMI
CITY OF MIAMI
CIUDAD DE MIAMI
VIL MIAMI
Charter
Amendment
Requiring
Referendum
Approval
When
Construction Has Not Commenced
Within Certain Timeframe
Arrendamiento de Tierras
Sumergidas Propiedad de la Ciudad
por parte de Entidades que Tengan
Derecho de Posesin o de Propiedad
sobre Tierras Altas Contiguas
Deber
enmendarse
la
Carta
Constitucional de Miami para permitir
que la Ciudad celebre acuerdos de
arrendamiento o administracin, con
respecto a tierras sumergidas propiedad
de la Ciudad (tierras que estn bajo el
agua incluidos fondos de baha), con
entidades que tengan derecho de
posesin o de propiedad sobre tierras
altas colindantes (tierras que limitan con
el agua) para construir marinas, muelles
o instalaciones similares, empleando
mtodos
aprobados
mediante
ordenanza, con la condicin de que
dichos acuerdos de arrendamiento o
administracin
supongan
un
rendimiento para la Ciudad de al menos
el valor justo de mercado?
Lokasyon Teren Sibmje Vil la
Posede bay Antite ki an Posesyon
oswa ki Posede Teren pi Elve ki
Touche Teren Vil la
ske se pou yo modifye Konstitisyon
Miami pou otorize Vil la siyen kontra
lokasyon oswa konvansyon jesyon, pou
teren sibmje Vil la posede (teren ki
anba dlo ikonpri fon b yo), avk antite
ki an posesyon oubyen ki gen dwa
pwopriyete sou teren elve ki touche
teren sibmje Vil la (teren ki akote dlo)
pou konstwi marina, dk oubyen lt
enstalasyon sanblab, grasa metd ki
adopte pa donans, akondisyon kontra
lokasyon sa yo oubyen konvansyon
jesyon yo egzije pou enstalasyon yo
tounen nan men Vil la pou yon pri ki
omwen ekitab sou mache a?
YES/S/WI
NO/NO/NON
YES/S/WI
NO/NO/NON
130
131
132
133
YES/S/WI
NO/NO/NON
134
135
END OF BALLOT
FIN DE LA BOLETA
FEN BILTEN VT LA
Page 1 of 1
EXHIBIT B
City of Miami
City Hall
3500 Pan American
Drive
Miami, FL 33133
www.miamigov.com
Legislation
Resolution: R-14-0227
File Number: 14-00526
WHEREAS, City of Miami ("City") and Bayside Marketplace, LLC ("Developer") are the current
landlord and tenant, respectively, for certain premises located at Bayside Marketplace in Miami,
Florida, as more particularly described in the Retail Lease and Garage Lease (the "Leased Property");
and
WHEREAS, the City and the Developer desire to modify certain provisions of the Retail Lease and
Garage Lease; and
WHEREAS, in exchange for extending the term of the Garage Lease by fifty-three (53) years and
the right to build additional parking spaces, the current annual minimum base rent of $10,000.00 will
be increased to $916,920.00 and the percentage rent calculation will be changed from a percentage of
the Developer's profits, to fifteen percent (15%) of their gross revenues above a natural breakpoint of
$6,112,800.00; and
WHEREAS, in exchange for extending the term of the Retail Lease by fifty-three (53) years,
increasing the cap on refinancing to eighty percent (80%) of the appraised value of the improvements
and increasing the maximum allowable square footage to include the development of a 1,000 foot tall
observation and entertainment tower known as Skyrise, the City will receive an up-front payment of
$10,000,000.00 plus three percent (3%) of the first $125,000,000.00 in refinancing for a total payment
of $13,750,000.00; the current annual minimum base rent of $1,000,000.00 will be increased to
City of Miami
Page 1 of 5
$1,540,000.00 and the percentage rent calculation will be changed from a calculation involving a
percentage of the Developer's profits, which the City has received $0.00 over the life of the Lease, to
six percent (6%) of their gross revenues above a natural breakpoint of $25,666,666.00; a minimum
base rent for the Skyrise Tower in the amount of $1,059,082.00 and 1.5% of the Gross sales of
SkyRise over a breakpoint; and an increased annual contribution to the Miami Bayside Foundation to
$350,000.00;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by
reference and incorporated as fully set forth in this Section.
Section 2. In accordance with the provisions of Section 3(f)(iii) or Section 29-B of the Charter of
the City of Miami, Florida, as applicable, a referendum special election is hereby called and directed to
be held in the City of Miami, Florida, from 7:00 A.M. until 7:00 P.M., on Tuesday, August 26, 2014, for
the purpose of submitting to the qualified electors of the City of Miami for their approval or disapproval
of the proposed lease amendments as set forth in the Ballot Question.
Section 3. The referendum Special Election shall be held at the voting places in the precincts
designated, all as shown on the list attached hereto and made a part hereof and referred to as Exhibit
No. 1 or as may be designated by the Supervisor of Elections of Miami-Dade County, Florida, in
conformity with the provisions of the general laws of the State. The Precinct Election Clerks and
Inspectors serve at said polling places on said election date shall be those designated by the
Supervisor of Elections of Miami-Dade County, Florida, for such purpose in accordance with the
general laws of the state. A description of the registration books and records which pertain to election
precincts wholly or partially within the City of Miami, and which the City of Miami is hereby adopting
and desires to use for holding such referendum special election is as follows: all registration cards,
books, records and certificates pertaining to electors of the City of Miami and established and
maintained as official by the Supervisor of Elections of Miami -Dade County, Florida, in conformity with
the provisions of the general laws of the State of Florida, are hereby adopted and declared to be, and
shall hereafter be recognized and accepted as, official registration cards, books, records and
certificates of the City of Miami.
Section 4. In compliance with section 100.342, Florida Statutes (2013), the City Clerk is hereby
authorized and directed to publish notice of the adoption of the herein resolution and of the provisions
hereof, at least twice, once in the fifth week and once in the third week prior to the week in which the
aforesaid referendum special municipal election is to be held, in newspaper(s) of general circulation in
the City of Miami, Florida, which notice shall be substantially in the following form:
"NOTICE OF REFERENDUM SPECIAL ELECTION
TO BE HELD ON
TUESDAY, AUGUST 26, 2014
IN THE CITY OF MIAMI, FLORIDA
A referendum Special Election will be held on Tuesday, August 26, 2014 from 7:00 A.M. until 7:00 P.M.
in the City of Miami, Florida, at the polling places in the several election precincts designated by the
Board of County Commissioners of Miami-Dade County, Florida, as set forth herein, unless otherwise
provided by law, for the purpose of submitting to the qualified electors of the City of Miami, Florida, the
following question:
City of Miami
Page 2 of 5
"Should the City extend the existing leases from 46 to 99 years with Bayside Marketplace LLC on the
16.85 acres of waterfront land (Bayside Marketplace) conditioned on the City receiving: upfront
payment of $10,000,000; minimum guaranteed yearly rent of approximately $3,516,002 (which
escalates); percentage rent; minimum $27,000,000 improvements to Bayside Marketplace including
additional parking; increased contribution to Miami Bayside Foundation; and development of a
$400,000,000 privately funded 1,000 foot observation and entertainment tower (Skyrise Miami)?"
YES
(For the Measure)
NO
(Against the Measure)
Section 5. The official ballot to be used at said referendum Special Election shall be in full
compliance with the laws of the State of Florida with respect to absentee ballots and to the use of the
mechanical voting machines or the Computer Election System, and shall be in substantially the
following form, to wit:
"OFFICIAL BALLOT
REFERENDUM SPECIAL ELECTION
TUESDAY, AUGUST 26, 2014
FOR APPROVAL OR DISAPPROVAL OF
THE FOLLOWING QUESTION:
________________ YES
(For the Measure)
City of Miami
_______________ NO
(Against the Measure)
Page 3 of 5
" Should the City extend the existing leases from 46 to 99 years with Bayside Marketplace LLC on the
16.85 acres of waterfront land (Bayside Marketplace) conditioned on the City receiving: upfront
payment of $10,000,000; minimum guaranteed yearly rent of approximately $3,516,002 (which
escalates); percentage rent; minimum $27,000,000 improvements to Bayside Marketplace including
additional parking; increased contribution to Miami Bayside Foundation; and development of a
$400,000,000 privately funded 1,000 foot observation and entertainment tower (Skyrise Miami)?"
Section 6. The form of the ballot shall be in accordance with the requirements of general election
laws. Electors desiring to vote to approve the Question described above, shall be instructed to mark in
the appropriate place next to the word "YES" within the ballot containing the statement relating to the
Question. Electors desiring to vote to disapprove the Question described above, shall be instructed to
mark in the appropriate place next to the word "NO" within the ballot containing the statement relating
to the Question.
Section 7. The City Clerk shall cause to be prepared absentee ballots containing the Question set
forth in Section 5 above for the use of absentee electors entitled to cast such ballots in said
referendum Special Election.
Section 8. All qualified electors of said City shall be permitted to vote in said referendum Special
Election and the Supervisor of Elections of Miami-Dade County, Florida, is hereby requested,
authorized, and directed to furnish, at the cost and expense of the City of Miami, a list of all qualified
electors residing in the City of Miami as shown by the registration books and records of the Office of
said Supervisor of Elections and duly certify the same for delivery to and for use by the election
officials designated to serve at the respective polling places in said election precincts .
Section 9. For the purpose of enabling persons to register who are qualified to vote in said
referendum special election to be held on August 26, 2014, and who have not registered under the
provisions of the general laws of Florida and Chapter 16 of the Code of the City of Miami, Florida, or
who have transferred their legal residence from one voting precinct to another in the City, they may
register Monday through Friday, from 8:00 A.M. to 5:00 P.M. at the Miami-Dade County Elections
Department located at 2700 Northwest 87th Avenue, Doral, Florida, within such period of time as may
be designated by the Supervisor of Elections of Miami-Dade County, Florida. In addition to the above
place and times, qualified persons may register at such branch offices and may also use any mobile
registration van for the purpose of registration in order to vote in the herein described referendum
special election during such times and on such dates as may be designated by the Supervisor of
Elections of Miami-Dade County, Florida.
Section 10.
Todd B. Hannon, the City Clerk of the City of Miami, Florida, or his duly appointed
successor, is hereby designated and appointed as the official representative of the Commission of the
City of Miami, Florida, in all transactions with the Supervisor of Elections of Miami-Dade County,
Florida, in relation to matters pertaining to the use of the registration books and the holding of said
referendum special election.
Section 11.
The City Clerk shall deliver a certified copy of this Resolution to the Supervisor of
Elections of Miami-Dade County, Florida, not less than forty-five days prior to the date of the herein
referendum Special Election.
Section 12.
of the Mayor.{1}
City of Miami
This Resolution shall become effective immediately upon its adoption and signature
Page 4 of 5
Footnotes:
{1} If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10)
calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by the City Commission.
City of Miami
Page 5 of 5