Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Cruise Services
Information
Requested Action
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MOTION TO APPROVE Fifth Amendment to Port Everglades Passenger Cruise Terminal and Berth User Agreement between Broward County and Royal Caribbean Cruises Ltd. (“RCL”) confirming RCL’s exercise of the first Option Term through September 30, 2030; establishing financial terms for the first Option Term, including the Port User Charge, Guaranteed Minimum Annual Billable Passenger Movements, and Annual Billable Passenger Movements Volume Incentive Payments during the First Option Term; and updating other provisions.
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Why Action is Necessary
Broward County Board of County Commissioners’ approval is required for the Fifth Amendment to the Port Everglades Passenger Cruise Terminal and Berth User Agreement between Broward County and Royal Caribbean Cruises Ltd.
What Action Accomplishes
Approves the Fifth Amendment to the Port Everglades Passenger Cruise Terminal and Berth User Agreement between Broward County and Royal Caribbean Cruises Ltd.
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.”
Royal Caribbean Cruises, Ltd. (“RCL”) has been homeporting cruise ships at Port Everglades operating under the Royal Caribbean International, Celebrity Cruises, and Silversea brands for many years through a series of agreements with Broward County dating back to 1999. On June 6, 2017 (Item No. 61), the Board approved a Passenger Cruise Terminal and Berth User Agreement (“User Agreement”) with RCL, which commenced on January 1, 2018, and extended through September 30, 2026. The User Agreement provided RCL with two additional option terms. The first option term is for a four-year period ending September 30, 2030. The second option term is for a five-year period ending on September 30, 2035. Each option term requires at least six months notice prior to the end of the then current term.
On June 12, 2018 (Item No. 68), the Board authorized the County Administrator to approve the First Amendment to the User Agreement. On July 3, 2018, the County Administrator approved the First Amendment, which implemented a Capital Cost Recovery Charge (“CCRC”), to be paid by RCL, to reimburse the County for a portion of increased costs associated with the design, expansion, and construction of improvements to Cruise Terminal 25.
On February 21, 2023 (Item No. 13), the Board approved the Second Amendment to the User Agreement that modified the Additional Capital Cost for Cruise Terminal 25 improvements, recognized and implemented an uncontrollable force as a result of the COVID-19 pandemic, and added a Work Letter covering the discussion of improvements to Cruise Terminal 29.
On May 14, 2024, RCL sent a letter to the County expressing its intent to exercise the first option term of four years, potentially extending the User Agreement through September 30, 2030. RCL also requested that the same terms and conditions in the User Agreement carry over into the first option term, noting, however, that negotiating any changes to the Port User Charge (“PUC”) and Guaranteed Annual Minimum Billable Passenger Movements would not be appropriate until the parties agree on terms for the redevelopment of Cruise Terminal 29. Given that the User Agreement requires those business terms to be agreed to within 120 days of the option term being exercised, an amendment was required.
On September 17, 2024 (Item No. 56), the Board approved the Third Amendment to the User Agreement that extended the period during which the parties must agree on rates for the first option term, modified the CCRC provision, and acknowledged full payment by RCL of the CCRC for Cruise Terminal 25.
As part of the efforts by staff to move forward with the improvements to Cruise Terminal 29, on January 16, 2026, the County Administrator executed a Memorandum of Understanding with RCL for redevelopment of the terminal. Discussions of the necessary agreements continue with RCL and will be the subject of future Board action.
On August 20, 2026, the County Administrator executed the Fourth Amendment to the User Agreement, which implemented a new CCRC payable by RCL to reimburse the County for a portion of the costs associated with improvements to Cruise Terminal 18 in preparation for the arrival of the world’s largest cruise ship, Legend of the Seas, on November 7, 2026.
This Fifth Amendment to the User Agreement was negotiated over a series of meetings held on July 1, 2026, July 22, 2026, August 5, 2026, and August 19, 2026, and included representatives from RCL, the County Attorney’s Office, and Port staff. The proposed Amendment addresses the following business terms:
• Confirms RCL’s exercise of the first Option Term commencing retroactive to October 1, 2026, through September 30, 2030;
• Establishes a $20.00 Port User Charge (“PUC”) per billable passenger movement effective January 1, 2027, with annual adjustments beginning in January 2028 in accordance with the existing PUC adjustment methodology. This is an increase from the current PUC of $18.4390;
• Establishes Guaranteed Minimum Annual Billable Passenger Movements of 1.5 million passengers for each full Contract Year during the first Option Term, with the final Contract Year prorated through September 30, 2030. This is an increase from 1.3 million billable passenger movements in the current agreement;
• Revises the Annual Billable Passenger Movements Volume Incentive Payments beginning in Contract Year 2027 to account for the brand recognition and related economic benefit RCL brings to the Port and County.
• Replaces Exhibits 1 and 2 in the User Agreement to reflect the agreed terms for the first Option Term while retaining the historical information from the initial Term;
• Updates the insurance provisions of the agreement to reflect current County requirements; and
• Updates other provisions to reflect changes in state law since the last amendment.
With the exception of two years during the pandemic, RCL has exceeded its 1.3 million minimum annual billable passenger movements for the last 10 years. In Contract Year 2025, RCL completed 3,009,406 billable passenger movements and generated $49,636,789 in revenue to the Port.
Martin Associates, the Port’s consultant for economic impact modeling at the Port, estimates the annual economic impact of RCL’s amended agreement will support 2,130 direct, 1,175 induced, and 1,428 indirect jobs, result in a total of $320,198,000 in personal income for those job holders, $779,235,000 in sales revenue for companies providing services to the cruise lines, $66,931,000 in local purchases, and generate $34,200,000 in state and local tax revenue annually throughout the state (see Exhibit 2).
The Fifth Amendment has been reviewed and approved as to form by the Office of the County Attorney. The amendment is completing final review within RCL before execution, and the Board will be advised through the Monday Night Memo if the amendment is not executed by RCL prior to the meeting.
Source of Additional Information
Martin Jackson, Director of Cruise Services, Port Everglades, 954-468-3696;
Glenn Wiltshire, Deputy Director, Port Everglades, 954-468-3504
Fiscal Impact
Fiscal Impact/Cost Summary
Total revenue resulting from minimum PUC guaranteed payments is estimated at $118,132,902 over the first Option Term. Additional revenue will result from RCL exceeding its 1.5 million annual passenger movement guarantee.