Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Business Development
Information
Requested Action
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MOTION TO APPROVE Second Amendment to the Passenger Cruise Terminal and Berth User Agreement Between Broward County and Balearia Caribbean Ltd., Corp. to extend the term for one year through November 30, 2026, and update the rates; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
Broward County Board of County Commissioners’ approval is required to amend the Passenger Cruise Terminal and Berth User Agreement with Balearia Caribbean Ltd., Corp.
What Action Accomplishes
Amends the Passenger Cruise Terminal and Berth User Agreement with Balearia Caribbean Ltd., Corp. to extend the term for one year through November 30, 2026, and update the rates.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
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.”
Balearia Caribbean Ltd., Corp. (“Balearia”) has operated a fast ferry service for passengers and cargo between Port Everglades and the Bahamas since 2011. On November 14, 2023 (Item No. 19), the Board approved the Passenger Cruise Terminal and Berth User Agreement. Subsequently, on October 22, 2024 (Item No. 14), the Board approved the First Amendment to the Passenger Cruise Terminal and Berth User Agreement, extending the term for one year through November 30, 2025, and updating the rates (as amended, the “Berth Agreement”).
On March 21, 2024 (Item No. 14), the Board authorized negotiations with Balearia for a long-term land lease and development agreement to design, build, finance, operate, and maintain a new exclusive ferry terminal on County-owned land adjacent to Berth 28A at Port Everglades. Because negotiations on the long-term ground lease will not be finalized before the Berth Agreement’s expiration, the parties have mutually agreed to further extend the Berth Agreement by one year, through November 30, 2026, and to adjust the economic terms consistent with the annual escalations applied in other Port cruise line berth agreements.
A sunshined negotiation between Balearia and Port Everglades was held on October 20, 2025, to discuss the Second Amendment to the Berth Agreement. The principal business terms of the amendment are summarized below:
• Port User Fee (Designated Vessel): Commencing December 1, 2025, $47,972 per month, reflecting a 3.5% increase from the prior year.
• Port User Fee (Non-Designated Vessel): For each month or portion thereof that a Non-Designated Vessel is berthed at Port Everglades for lay-in purposes only, the Port User Fee will increase by $7,995 per month, also a 3.5% increase from the prior year.
• Terminal Use: The monthly Port User Fee includes six operating hours of terminal use per day. Commencing December 1, 2025, any terminal use exceeding six hours from first use on a given day will be billed at $320 per hour, a 3.5% increase from the prior year.
• Passenger Wharfage Charges (per passenger move: embark, debark, in-transit):
o 0-75,000 passengers: $1.61 per passenger move
o 75,001-150,000 passengers: $2.37 per passenger move
o 150,001-225,000 passengers: $3.12 per passenger move
o Over 225,000 passengers: $3.88 per passenger move
These represent a 3.5% increase from the prior year.
• All such fees are in lieu of the published rates in Port Everglades Tariff No. 12 (“Tariff”) for dockage, harbormaster fees, linehandling, terminal overtime, terminal electric, cruise passenger wharfage, security, and sworn law enforcement for the Designated and Non-Designated Vessels.
• Balearia will continue to pay wharfage charges for cargo, if any, in accordance with the Tariff.
Balearia currently operates sailings to Freeport and Bimini up to six days per week. In Fiscal Year 2024, Balearia’s operations generated a throughput of 116,796 guests, yielding $831,965 in revenue for the Port. Preliminary guest throughput results for Fiscal Year 2025 indicate a year-over-year increase of 14% to 133,727 passengers.
Balearia’s operations contribute significantly to the regional economy, supporting an estimated 130 direct jobs, 75 induced jobs, and 76 indirect jobs in local industries. Total personal income resulting from these jobs is approximately $16.393 million, with local businesses receiving an estimated $21.7 million in sales revenue, resulting in approximately $1.65 million in state and local tax revenue (see Exhibit 2).
The Second Amendment to the Agreement has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Jorge A. Hernández, Director, Business Development Division, Port Everglades Department, (954) 468-3501.
Stacie Warren, Real Property Administrator, Business Development Division, Port Everglades Department, (954) 468-3706.
Fiscal Impact
Fiscal Impact/Cost Summary
The Port will receive guaranteed revenue of $575,667 during the one-year extension period and will also receive additional revenue based on Balearia's actual passenger and cargo throughput.