Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Business Development
Information
Requested Action
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(This is the second of two required public hearings. The first public hearing was held on June 10, 2025.)
MOTION TO APPROVE Second Amendment to the Lease Agreement between Broward County and Cemex Construction Materials Florida, LLC, for a 4.61-acre marine terminal in the Northport area of Port Everglades, setting the applicable rates for the second five-year option term (with a term of April 1, 2025, through March 31, 2030), and adding miscellaneous provisions; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
Pursuant to Section 32.5.b. of the Broward County Administrative Code, two Public Hearings are required for leases exceeding five years within the Restricted Use Zone.
What Action Accomplishes
Approves of the Second Amendment to the Lease Agreement between Broward County and Cemex Construction Materials Florida, LLC. This is the second of two public hearings. The first public hearing was held on June 10, 2025.
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☒County Commission
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Previous Action Taken
The first public hearing was held on June 10, 2025 (Item No. 67).
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners’ (“Board”) Value of “Building partnerships and working collaboratively with others to meet shared objectives,” and the Goal of “Ensuring economic opportunities and a sustainable economy, with an emphasis on Broward’s lower and middle class.”
Cemex Construction Materials Florida, LLC (“CEMEX”) and its predecessor owners have operated a 4.61-acre marine terminal for the distribution and packaging of cement in the Northport area of Port Everglades since 1992 (see Exhibit 3). On March 23, 2010 (Item No. 9-PH) the Board approved the most recent Lease Agreement, as subsequently amended by the Board on March 10, 2015 (Item No. 48) (as amended, the “Lease Agreement”). The Lease Agreement provided for an initial term of ten years, with two additional five-year extension options at CEMEX’s discretion (but subject to approval of the applicable rates). The first five-year extension expired on March 31, 2025; however, CEMEX has remained on the premises with the County’s consent while negotiations of a new amendment to exercise the final five-year term were ongoing.
CEMEX provided notice of its intent to exercise the second five-year extension option in accordance with the terms of the Lease Agreement. Pursuant to the Lease Agreement, the second five-year extension is subject to an agreement on the adjustment of the rental rate based on an updated appraisal and the minimum annual guarantee.
Two sunshined negotiation meetings were held with CEMEX on April 3, 2025, and April 30, 2025, to discuss the terms of the second five-year extension option. Participants included representatives from CEMEX, Port Everglades staff, and the Office of the County Attorney. In accordance with Section 315.18, Florida Statutes, the meetings were closed to the public, as proposals or counterproposals related to the lease of land or port facilities are confidential and exempt from public disclosure until specified conditions are met. The primary business terms of the proposed Second Amendment to the Lease Agreement are summarized as follows:
• Term: Extension of the Lease Agreement for a second and final five-year option period, as provided under the original Lease Agreement. The term is retroactive to April 1, 2025, and ends March 31, 2030.
• Land Rent:
The current annual land rent will increase as follows, based on the most recent appraised value of the land and improvements:
- Contract Year (CY) 16: $1,149,817 (up from $1,095,064 in CY 15)
- CY17: $1,233,179
- CY18: $1,353,414
- CY19: $1,519,207
- CY20: $1,751,059
• Minimum Annual Guarantee (“MAG”):
The Minimum Annual Guarantee will increase as follows:
- CY16: $1,128,555 (up from $826,000 in CY 15)
- CY17: $1,160,155
- CY18: $1,192,639
- CY19: $1,226,033
- CY20: $1,260,362
The Notice of Public Hearing for this second public hearing was published twice (August 11, 2025, and August 18, 2025) pursuant to the applicable provisions of Chapter 94-429, Laws of Florida (see Exhibit 2).
This Second Amendment to the Lease Agreement has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Jorge A. Hernández, Director of Business Development, Port Everglades Department, (954) 468-3501
Stacie Warren, Assistant Property Manager, Business Development Division, Port Everglades Department, (954) 468-3706
Fiscal Impact
Fiscal Impact/Cost Summary
The County will receive guaranteed revenue of $12,974,400 over the second five-year extension option and will generate additional revenue for each year CEMEX exceeds its MAG cargo projections.