Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Choose a Division.
Information
Requested Action
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A. MOTION TO WAIVE competitive selection requirements set forth in Section 32.4(h) of the Broward County Administrative Code in accordance with Section 32.10 of the Broward County Administrative Code to enter into a Marine Terminal Lease and Operating Agreement with A.G. Royce Metal Marketing, LLC d/b/a Concrete Reinforcing Products for approximately 3.94 acres (171,468 square feet) of land in the Southport area at Port Everglades, for a one-year term commencing on October 1, 2025, and ending on September 30, 2026, finding that there is good cause for such waiver.
B. MOTION TO APPROVE Marine Terminal Lease and Operating Agreement between Broward County and A.G. Royce Metal Marketing, LLC d/b/a Concrete Reinforcing Products for approximately 3.94 acres (171,468 square feet) of land in the Southport area at Port Everglades, for a one-year term commencing on October 1, 2025, and ending on September 30, 2026; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
A. Board approval is required to waive the competitive selection requirements set forth in Section 32.4(h) of the Broward County Administrative Code in accordance with Section 32.10 of the Broward County Administrative Code.
B. Marine Terminal Lease and Operating Agreements require approval by the Broward County Board of County Commissioners pursuant to Section 32.4(h) of the Broward County Administrative Code.
What Action Accomplishes
A. Waives the competitive selection requirements set forth in Section 32.4(h) of the Broward County Administrative Code.
B. Approves a Marine Terminal Lease and Operating Agreement between Broward County and A.G. Royce Metal Marketing, LLC d/b/a Concrete Reinforcing Products.
Goal Related Icon(s)
☒County Commission
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Previous Action Taken
None
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.”
A.G. Royce Metal Marketing, LLC d/b/a Concrete Reinforcing Products (“CRP”) is headquartered in Sunrise, Florida, and is a national distributor of steel reinforcing bars used for construction projects. Port Everglades has been its primary port of importation for over 20 years.
On September 5, 2024 (Item No. 12), the Board approved the waiver of the competitive selection requirements set forth in Section 32.4(h) of the Broward County Administrative Code (“Code”), finding that there was good cause for such a waiver, and approved a Marine Terminal Lease and Operating Agreement with CRP for approximately 3.94 acres (171,468 square feet) of land in the Southport area at Port Everglades, for a one-year term commencing on October 1, 2024, and ending on September 30, 2025 (“2024 Agreement”).
Section 32.4(h) of the Code requires a competitive selection process for Marine Terminal Lease and Operating Agreements; however, Section 32.10 authorizes the Board to waive the requirements for good cause. CRP is a long-term port user, tenant, and beneficial cargo owner at Port Everglades. Therefore, Port staff recommends approval of a waiver of the competitive selection process.
CRP has requested to enter into a new Marine Terminal Lease and Operating Agreement with Broward County for a one-year term (“New Agreement”). Representatives from CRP, the Port Everglades Department, and the Office of the County Attorney held sunshined negotiations for the New Agreement on August 20, 2024. The primary business terms of the New Agreement are as follows:
- The lease is for a one-year term from October 1, 2025, through September 30, 2026.
- The approximately 3.94 acres (171,468 square feet) leased premises in the Southport area of the Port will remain the same as the 2024 Agreement (see Exhibit 2).
- The land rental rate will increase from $1.40 per square foot to $1.44 per square foot, an increase of 3% from the 2024 Agreement, resulting in an annual land rent increase from $240,277 to $246,914 ($20,576 per month).
- The applicable cargo wharfage rate will increase from $3.58 per short ton to $3.69 per short ton, a 3% increase.
- The negotiated minimum guaranteed payment (“MGP”) for wharfage for imported break-bulk steel will be $276,750. This is based on a guaranteed cargo throughput of 75,000 short tons.
- The Port Director may require CRP to relocate to another location within the Port at no cost to the Port with a minimum of 180 days’ written notice if the land covered by the New Agreement is needed for another purpose.
From October 2023 through September 2024, CRP imported and distributed over 63,000 short tons of steel reinforcing bars through Port Everglades. During the 2024 Agreement term from October 2024 through July 2025, CRP has already imported and distributed over 59,000 short tons of steel reinforcing bars through the Port. Based on CRP’s positive history at Port Everglades, Port staff recommend approval of the New Agreement.
This New 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, Real Estate Administrator, Business Development Division, Port Everglades Department, (954) 468-3706
Fiscal Impact
Fiscal Impact/Cost Summary
The Port Everglades Department will realize guaranteed revenue of $523,664 during the term of the New Agreement. Additional revenue will be generated from marine charges associated with the cargo delivery to the Port, as well as additional cargo wharfage if CRP exceeds its MGP projections.