Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Business Development
Information
Requested Action
title
MOTION TO AUTHORIZE Port Everglades Chief Executive/Port Director to execute a mutual termination letter, subject to review and approval by the Office of the County Attorney for legal sufficiency, to terminate the Lease Agreement between Broward County and Princess Cruise Lines, LTD. (Corp.), dated August 14, 2024, for space in Warehouse 30 at Port Everglades.
body
Why Action is Necessary
Mutual termination of the Lease Agreement between Broward County and Princess Cruise Lines, LTD. (Corp.) requires approval by the Broward County Board of County Commissioners.
What Action Accomplishes
Authorizes the Port Everglades Chief Executive/Port Director to execute a mutual termination letter, subject to review and approval by the Office of the County Attorney for legal sufficiency, to terminate the Lease Agreement between Broward County, as lessor, and Princess Cruise Lines, Ltd. (Corp.) (“Princess”), as lessee, for 17,248 square feet of warehouse space in Port Everglades’ Warehouse 30, located at 3401 McIntosh Road, Hollywood, Florida.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
On August 14, 2024, the County entered into a Lease Agreement with Princess (the “Lease Agreement”) for approximately 17,248 square feet of warehouse space within Warehouse 30 in Port Everglades, located at 3401 McIntosh Road, Hollywood, Florida. The County Administrator executed the Lease Agreement during the 2024 Summer Recess, as the Broward County Board of County Commissioners authorized on June 18, 2024 (Item No. 44). The lease was for an initial three-year term effective October 1, 2024, with an additional three-year extension term if exercised by Princess.
Princess originally planned to build out the warehouse space and use it for assembling and distributing “Princess Medallions,” which are wearable devices designed to enhance their cruise passenger experience. However, on March 12, 2025, Princess informed Port staff that it no longer required the warehouse space due to changes in corporate strategy and requested that the lease be terminated if another use could be found. Although the Lease Agreement commenced on October 1, 2024, Princess has yet to move in or start renovations.
Concurrently, the Port Department recently identified a need for additional warehouse space to store spare parts and equipment related to its ongoing upgrade of seven existing Samsung ship-to-shore container gantry cranes. The Port Department already uses adjacent space in the same warehouse for crane parts storage but requires additional capacity. Terminating this Lease Agreement provides an immediate space solution without incurring extra costs to lease space outside the port. The mutual termination letter will have a retroactive termination date of March 12, 2025.
The mutual termination letter is subject to review and approval by the Office of the County Attorney for legal sufficiency before execution by the Port Director.
Source of Additional Information
Jorge A. Hernández, Director of Business Development, (954) 468-3501.
Stacie Warren, Assistant Property Manager, (954) 468-3706.
Fiscal Impact
Fiscal Impact/Cost Summary
The Lease Agreement would have generated approximately $773,000 in revenue during its initial 3-year term. Rent through the termination date (March 12, 2025) will be retained, but the remaining rent liability of $660,747 after the termination date will be waived.