Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Business Development
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, pursuant to 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, 2026, with four mutual one-year renewal options, finding that good cause exists 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, 2026, with four mutual one-year renewal options.
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Why Action is Necessary
A. Pursuant to Section 32.10 of the Broward County Administrative Code (“Administrative Code”), the Broward County Board of County Commissioners (“Board”) must find that good cause exists to waive the competitive selection requirements set forth in Section 32.4.h of the Administrative Code.
B. Pursuant to Section 32.4.h of the Broward County Administrative Code, Marine Terminal Lease and Operating Agreements must be approved by the Board.
What Action Accomplishes
Waives the competitive selection requirements set forth in Section 32.4.h of the Broward County Administrative Code and approves a Marine Terminal Lease and Operating Agreement between Broward County and A.G. Royce Metal Marketing, LLC, d/b/a Concrete Reinforcing Products.
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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 in construction projects. Port Everglades has served as CRP’s primary port of importation for almost 29 years and has leased land at the port since 2018 through a series of one-year leases.
On September 16, 2025 (Item No. 8), the Board found that good cause existed to waive the competitive selection requirements set forth in Section 32.4.h of the Broward County Administrative Code (“Code”) and approved a Marine Terminal Lease and Operating Agreement with CRP (“2025 Agreement”). The 2025 Agreement covers approximately 3.94 acres (171,468 square feet) in the Southport area of Port Everglades (see Exhibit 2) and has a one-year term that commenced on October 1, 2025, and expires on September 30, 2026.
Section 32.4.h of the Code requires a competitive selection process for Marine Terminal Lease and Operating Agreements. Section 32.10 of the Code, however, authorizes the Board to waive that requirement upon finding good cause. CRP is a long-standing Port user, an existing tenant, and a beneficial cargo owner whose operations generate substantial cargo activity at Port Everglades. A new agreement would provide continuity for this established cargo operation while preserving the County’s flexibility through a short initial term, mutual renewal options, and a relocation provision. Accordingly, Port staff recommends that the Board find that good cause exists and waive the competitive selection requirement.
CRP has requested a new Marine Terminal Lease and Operating Agreement with Broward County (“New Agreement”). Representatives of CRP, the Port Everglades Department, and the Office of the County Attorney negotiated the New Agreement on August 18 and August 21, 2026. The principal business terms are as follows:
• The initial term will begin October 1, 2026, and expire September 30, 2027. The New Agreement will include four successive mutual one-year renewal options. CRP must request each option at least four months before the expiration of the then-current term, and each option will become effective only upon approval by the Port Everglades Chief Executive Officer/Port Director.
• The leased premises will remain the same as under the 2025 Agreement and will consist of approximately 3.94 acres (171,468 square feet) in the Southport area of Port Everglades.
• The land rental rate will increase by 3%, from $1.44 per square foot under the 2025 Agreement to $1.4832 per square foot during Lease Year 1 of the New Agreement. This adjustment will increase the annual land rent from approximately $246,914 to $254,321, an increase of approximately $617 per month from the current land rental rate. If the renewal options are exercised, the land rental rate will increase by 3% for each subsequent Lease Year.
• The cargo wharfage contractual rate will increase from $3.69 per short ton under the 2025 Agreement to $3.80 per short ton during Lease Year 1 of the New Agreement. This contractual rate will apply to both waterborne (arriving at the port by ship) and non-waterborne (entering the port by rail or truck) cargo, with non-waterborne cargo billed to CRP at the contractual rate rather than the applicable Port Everglades Tariff rate. During each subsequent Lease Year, the contractual rate will be adjusted by the same percentage change, if any, in the tariff rate for steel products under Port Everglades Tariff No. 12, Item No. 535 from the immediately preceding Lease Year.
• For each Lease Year, CRP will provide a minimum annual guarantee (“MAG”) equal to the cargo wharfage charges applicable to 75,000 short tons. Based on the Lease Year 1 rate of $3.80 per short ton, the initial MAG will be $285,000. Non-waterborne cargo will not be credited toward satisfaction of the MAG.
• The Port Everglades Chief Executive Officer/Port Director may require CRP to relocate to another location within Port Everglades, at no cost to the County, upon at least 180 days’ written notice if the leased premises are needed for another purpose.
During the 12-month period from October 2024 through September 2025, CRP imported and distributed more than 68,000 short tons of steel reinforcing bars through Port Everglades. During the first 10 months of the 2025 Agreement, from October 2025 through July 2026, CRP imported and distributed more than 81,000 short tons of steel through the Port, exceeding its MAG and cargo volume for the preceding 12-month period. Based on CRP’s long-standing relationship with Port Everglades and its demonstrated cargo performance, Port staff recommends approval of the New Agreement.
The economic activity associated with the MAG is estimated to support 81 jobs, including 35 direct, 11 indirect, and 35 induced. These jobs are expected to generate approximately $9,872,000 in annual personal income. Annual business services revenue is projected at approximately $5,042,000 and will generate approximately $926,000 in state and local tax revenue annually. These estimates are based on the MAG and will increase if CRP’s annual cargo volume exceeds 75,000 short tons, as further described in Exhibit 3.
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 Property Administrator, Business Development Division, Port Everglades Department, (954) 468-3706
Fiscal Impact
Fiscal Impact/Cost Summary
If all four mutual one-year renewal options are exercised, the Port Everglades Department is projected to receive approximately $2,863,319 in minimum revenue over the potential five-year term of the New Agreement, consisting of land rent and minimum annual cargo wharfage payments. Additional revenue may be generated from marine charges associated with vessel calls carrying CRP cargo, cargo wharfage on waterborne cargo exceeding 75,000 short tons annually, and cargo wharfage on non-waterborne cargo, which is not credited toward the MAG.