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 first of two required public hearings. The second public hearing will be held on May 6, 2025.)
MOTION TO APPROVE Third Amendment to the Marine Terminal Lease and Operating Agreement between Broward County and Florida International Terminal, LLC (“FIT”), to redefine “Terminal Operator Cargo” and update other provisions.
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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 amendments to marine terminal leases exceeding five years within the Restricted Use Zone.
What Action Accomplishes
Allows for the consideration of the Third Amendment to the Marine Terminal Lease and Operating Agreement between Broward County and FIT. This is the first of two Public Hearings. The second Public Hearing will be held on May 6, 2025. No action is required on this motion.
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.”
Florida International Terminal, LLC (“FIT”) has operated a container terminal in the Southport area of Port Everglades since 2005 (see map - Exhibit 2). On June 18, 2024 (Item No. 63), the Board approved the Second Amendment to the Marine Terminal Lease and Operating Agreement between Broward County and FIT to exercise both Option Terms, memorialize the Final Premises Effective Date, restructure the rental rate and per container (shipmove) rate (with the related minimum guaranteed payment) into an “all in” bundled rate, increase the credit to FIT for certain improvements to be made to the Final Premises, and update miscellaneous provisions.
Port staff has offered FIT the opportunity to adopt a new provision to its Marine Terminal Lease and Operating Agreement (“Agreement”) that eliminates different per container (shipmove) rates based on whether or not the cargo meets the definition of “terminal operator cargo” in the Agreement. The current definition of “terminal operator cargo” includes cargo carried by a shipping line with a current or previous ownership interest in FIT, cargo subject to a Vessel Sharing or Slot Charter Agreement with such lines, and cargo that was carried on a “New Service” as defined in the Agreement. All other cargoes are subject to paying much higher Tariff rates. The proposed change would apply the negotiated per container (shipmove) rate to all containerized cargo moving through the terminal and count towards meeting the minimum guarantee payment, allowing FIT to offer more competitive pricing for all containerized cargo. However, any cargo container volumes handled by FIT that had previously been handled by a different Port Everglades marine terminal operator within the previous twelve months will not be eligible for volume incentive discounts for the first 12 months that cargo moves through FIT.
The amendment also updates the provision covering the applicability of County Business Enterprise (“CBE”) goals to terminal improvements to reflect the latest requirements in the Broward County Business Opportunity Act, as well as updating the required cargo reporting forms.
A sunshined negotiations meetings was held with FIT on April 2, 2025, to discuss the Third Amendment to the Agreement. The meeting included representatives for FIT, Port Everglades staff, and the Office of the County Attorney. The negotiations were closed to the public, as proposals or counterproposals related to the lease of the land or port facilities are confidential and exempt from release until specified time periods as provided for in Section 315.18, Florida Statutes.
The Notice of Public Hearing was published twice (April 11, 2025, and April 18, 2025) (see Exhibit 3). Such notice for the second public hearing on May 6, 2025, will be published twice prior to the second public hearing (April 25, 2025, and May 2, 2025), pursuant to the applicable provisions of Chapter 94-429, Laws of Florida (see Exhibit 3).
The Third Amendment to Agreement has been reviewed by the Office of the County Attorney. The Third Amendment to Agreement is still being reviewed for final approval by FIT, and the receipt of signature pages will be noted in the Monday Night Memo prior to the first Public Hearing.
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) 468-3518
Fiscal Impact
Fiscal Impact/Cost Summary
It is difficult to quantify the fiscal impact of this action due to the many variables involved, however, only a small percentage of containerized cargo moving through Port Everglades is billed at Tariff rates. Port staff anticipates that enabling FIT to offer more competitive rates will have a positive effect by attracting new cargo business.